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07-20-2026
AGENDA CITY COUNCIL MEETING July 20, 2026 - 6:00 PM City Hall Council Chambers Members of the public can participate in person at Lakeville City Hall, 20195 Holyoke Avenue. 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. Roll Call 3. Citizen Comments 4. Additional agenda information 5. Presentations/Introductions a. Public Works Quarterly Report 6. Consent Agenda a. Check Register Summary b. Minutes of the 07-06-2026 City Council Meeting c. Professional Services Proposal from SRF Consulting for the Construction of Voyageur Park d. Proposal from Kompani for the Purchase of Playground Equipment for East Community Park Phase II e. Approve Change Order 2 for the Miscellaneous Street Improvements Project f. Right of Entry and Memorandum of Understanding for Facility Evaluation Study with McKinstry g. Contract for Heritage Center HVAC Roof Top Unit Replacement h. Contract for Boiler Plant Replacement at the Fine Arts Building i. Proposal from Southern Aluminum for the Purchase of Tables for the John Hennen Pavilion j. Accepting Donation from the Lakeville Public Safety Foundation k. Resolution Approving Charitable Gambling Rosemount VFW Post 9433 l. Juniper Triangle Development Agreements Page 1 of 420 City Council Meeting Agenda July 20, 2026 Page 2 m. Lakeville 35 Logistics Center South Addition Final Plat n. Post Consumer Brands Parking Lot Expansion o. EB First Addition Final Plat p. Authentix Lakeville Second Addition Final Plat 7. Action Items a. Acknowledge 2025 Annual Comprehensive Annual Report 8. Unfinished Business 9. New Business New Business items are intended for informal City Council discussion and will not begin before 6:30 p.m. The Council may provide direction to staff but will not take formal action on these matters. 10. Council/Committee Updates 11. Announcements a. Next City Council Meeting August 3, 2026 12. Adjourn Page 2 of 420 Date: 7/20/2026 Public Works Quarterly Report Proposed Action Staff recommends adoption of the following motion: Overview Supporting Information None Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Report Completed by: Page 3 of 420 Date: 7/20/2026 Check Register Summary Proposed Action Staff recommends adoption of the following motion: Move to approve the Check Register Summaries for 6/30/2026-7/1/2026. Overview Checks 329995 - 330103 $ 1,693,606.67 ACH/EFT 25790 - 25924 $ 4,310,479.89 Total $ 6,004,086.56 The City Council receives a list of expenditures paid (claims detail), which is available to the public upon request. The City serves as the fiscal agent for Lakeville Arenas and Dakota 911 and processes their accounts payable and payments – these amounts are not included in the total above. Supporting Information 1. 06.30.26 CKSUM-Checks 2. 07.01.26 CKSUM-ACH-EFT 3. Check Register Detail 7.1.26 ACH-EFT 4. Check Register Detail 6.30.2026 - Checks Financial Impact: $6,004,086.56 Budgeted: Yes Source: Various Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Julie Stahl, Finance Director Page 4 of 420 CHECK DISBURSEMENT REPORT FOR CITY OF LAKEVILLE ALL DATES Amount 1000 GENERAL FUND 135,940.83 2000 COMMUNICATIONS FUND 53.06 2210 FRANCHISE FEES 487.60 3252 2021B KEOKUK LIQUOR STORE 375.00 4000 BUILDING FUND 4,059.25 4025 NEW FIRE STATION #2 (2026 CONSTRUCTION)164,612.00 4125 TECHNOLOGY FUND 2,314.27 4200 PARK DEDICATION FUND 7,000.00 4720 2024A PARK BONDS 72,280.98 5300 PAVEMENT MANAGEMENT FUND 3,813.81 7450 ENVIRONMENTAL RESOURCES FUND 80.08 7600 WATER FUND 17,139.61 7700 SEWER FUND 508,267.55 7800 LIQUOR FUND 220,741.93 7900 MUNICIPAL RESERVES FUND 3,625.00 8000 ESCROW FUND 552,815.70 Report Total:1,693,606.67 07/14/2026 01:50 PM Page:1/1 Page 5 of 420 CHECK DISBURSEMENT REPORT FOR CITY OF LAKEVILLE ALL DATES Amount 1000 GENERAL FUND 204,726.44 2292 FIRST CENTER OPERATING FUND 0.92 4000 BUILDING FUND 1,214,559.10 4025 NEW FIRE STATION #2 (2026 CONSTRUCTION)18,395.12 4125 TECHNOLOGY FUND 1,360.90 4200 PARK DEDICATION FUND 16,821.62 4720 2024A PARK BONDS 58,701.35 5200 STATE AID CONSTRUCTION FUND 69,280.64 5400 STORMWATER INFRASTRUCTURE FND 45,811.14 6611 2026 STREET PROJECTS 556,346.44 7450 ENVIRONMENTAL RESOURCES FUND 23,441.25 7575 STREET LIGHTING FUND 91.90 7600 WATER FUND 814,414.48 7700 SEWER FUND 67,991.40 7800 LIQUOR FUND 558,689.31 9800 PAYROLL CLEARING FUND 659,847.88 Report Total:4,310,479.89 07/14/2026 01:48 PM Page:1/1 Page 6 of 420 MINUTES CITY COUNCIL MEETING July 6, 2026 - 6:00 PM City Hall Council Chambers 1. Call to order, moment of silence and flag pledge Mayor Hellier called the meeting to order at 6:00 p.m. 2. Roll Call Members Present: Mayor Hellier, Council Members Bermel, Lee, Volk, Wolter Staff Present: Justin Miller, City Administrator; Andrea McDowell Poehler, City Attorney; Joe Masiarchin, Parks & Recreation Director; Allyn Kuennen, Assistant City Administrator; Ann Orlofsky, City Clerk; Brad Paulson, Police Chief; Paul Oehme, Public Works Director; Tina Goodroad, Community Development Director 3. Citizen Comments The following members of the public addressed the City Council regarding a Conditional Use Permit request that will be considered at a future City Council meeting: Karin Miller, 17985 Jacquard Path, Lakeville Steven Buck, 16530 Judicial Road, Lakeville Kevin McCarty, 5920 W 136th Street, Savage Surya Ganesan, 7093 184th Street West, Lakeville 4. Additional agenda information 5. Presentations/Introductions a. National Night Out Proclamation Police Chief Brad Paulson described the activities that will occur during National Night Out. Mayor Hellier proclaimed Tuesday, August 4, 2026, as National Night Out in the City of Lakeville. b. Lakeville Liquors Mid-Year Report Liquor Operations Director Tana Wold presented the Mid-Year report for Lakeville Liquors. 6. Consent Agenda Page 7 of 420 City Council Meeting Minutes July 6, 2026 Page 2 Motion was made by Wolter, seconded by Bermel, to approve the following consent agenda: Voice vote was taken on the motion. Ayes - Hellier, Bermel, Lee, Volk, Wolter a. Check Register Summary b. Minutes of the 06/15/2026 City Council Meeting c. Extension of on-sale liquor license premises at B-52's for Pan-O-Prog events d. Certificate of Completion related to KTJ First Addition e. Amendment to Master Agreement with Lakeville Lacrosse for Facility Use and Sponsorships f. Approval of purchase of Fire Department Gas Monitor and Calibration System g. Resolution Accepting Donation from the Lakeville Public Safety Foundation h. Approve Agreement with the Metropolitan Council for the 2026 Community Assisted Lake Monitoring Program i. Temporary on-sale liquor license to Lakeville Rotary for Taste of Lakeville j. Resolution Receiving Feasibility Report and Calling for Public Hearing on the 215th Street Improvement Project (CP 26-09) k. Resolution Accepting a Donation from the Lakeville Public Safety Foundation for the Police Department l. Approve Joint Powers Agreement with the Vermillion River Watershed Joint Powers Organization for East Lake Rough Fish Management m. Contract for Fuel Island Upgrades n. Lake Marion Greenway Trail Change Order No. 1 o. Joint Powers Agreement Between Dakota County and the City of Lakeville for Engineering and Construction for the North Creek Greenway, East Lake Community Park to Eagleview Drive p. Lakeville Employment Policy Updates q. Agreement with Minnesota Department of Natural Resources for Local Trail Connections Grant for the Lake Marion Greenway Trail Construction from Ritter Farm Park to Casperson Park r. Agreement for High-Speed Garage Door Replacement at the Police Station s. Crystal Lake Education Center Site Improvement Performance Agreement t. 9446 210th Street - Conditional Use Permit u. 9475 212th Street - Conditional Use Permit v. Juniper Triangle Final Plat w. Restoration Covenant Church Site Improvement Performance Agreement 7. Action Items Page 8 of 420 City Council Meeting Minutes July 6, 2026 Page 3 None 8. Unfinished Business None 9. New Business a. Update on Safety and Operations at the CSAH 50/CSAH 60 Roundabout Dakota County Presentation City Engineer Zach Johnson introduced Tyler Krage, Dakota County Traffic Engineer, who provided an update on the safety and operations of the CSAH 50/CSAH 60 roundabout. The presentation was informational and intended to provide the City Council with an opportunity to review the County's findings and provide input as the study progresses. Mr. Krage reported that the intersection has experienced the highest number of crashes of any Dakota County intersection since the roundabout was constructed in 2015. Between 2023 and 2025, 423 crashes were recorded, resulting in a Crash Rate Index (CRI) of 5.96. He reviewed the County's mitigation efforts since 2016, including public education, enhanced enforcement, signage and pavement marking modifications, pedestrian crossing enhancements, and multiple engineering studies. Mr. Krage presented three improvement alternatives for Council consideration: • Option 1: Enhanced roundabout improvements, including pedestrian beacons, buffered lanes, and central island modifications, with an estimated cost of $100,000 to $200,000. This option is expected to provide minor safety improvements with no significant reduction in traffic delay. • Option 2: Enhanced roundabout improvements with right-turn bypass lanes, estimated at approximately $1.5 million. This option is expected to provide minor safety improvements and some reduction in traffic delay. • Option 3: Conversion of the intersection to a signalized intersection, estimated at approximately $4 million to $5 million. This option is projected to provide the greatest improvements in both safety and traffic operations. Mr. Krage stated that industry experts consulted by Dakota County, including the Minnesota Department of Transportation (MnDOT), the Institute of Transportation Engineers, and the Transportation Research Board, indicated that traffic volumes at this location are unusually high for a two-lane roundabout and that few comparable intersections exist nationally. He also noted that MnDOT no longer constructs this style of roundabout. The County's proposed next step is to initiate the engineering phase by retaining a consultant to further evaluate alternatives and conduct public engagement. The process would include ongoing updates to both the Lakeville City Council and the Dakota County Board, with County Board approval required before advancing to right-of-way acquisition or construction. Page 9 of 420 City Council Meeting Minutes July 6, 2026 Page 4 Councilmembers discussed the alternatives presented and questioned whether additional or more innovative design options should be explored. Discussion included the lack of speed data collected at the intersection and whether additional traffic calming measures could reduce crashes. Councilmembers observed that vehicle speed and distracted driving appear to be significant contributing factors and reiterated that the County's stated objective is to reduce crashes. County staff requested the City's partnership in advancing preliminary engineering and evaluating additional design alternatives, noting that work completed to date has primarily focused on traffic analysis rather than conceptual engineering. The Council indicated it is not supportive of major modifications to the intersection at this time and expressed no interest in converting the roundabout to a signalized intersection. Councilmembers requested that the County continue exploring additional alternatives before selecting a preferred option and noted that several questions remain unanswered. Councilmembers also stated that, should a future construction project move forward, they do not believe the City should be asked to contribute additional funding, as the City has previously participated financially in the intersection improvements. No formal action was taken. The Council directed staff to continue coordinating with Dakota County on the development of additional design alternatives. b. Lakeville Facility Study Update Parks and Recreation Director Joe Masiarchin and Brian Harjes of HKGi presented an update on the Community Facilities Study, which is being completed as part of the Park System Master Plan. No Council action was required. Staff summarized stakeholder outreach, site visits, and preliminary community survey results, which identified strong interest in expanded indoor recreation space, additional programming for all ages, improved arts and event facilities, and enhanced athletic amenities. Survey responses also showed broad support for a future community center and emphasized affordability and accessibility. Councilmembers discussed the City's current shortage of indoor recreational space, requested that potential future facility sites be evaluated, and asked about benchmarking membership costs and facility models in other communities. The consultant confirmed those analyses will be included in the final study. No formal action was taken. Staff will continue the study and return to the City Council with future updates. 10. Council/Committee Updates None 11. Announcements a. Next City Council Meeting July 20, 2026 Page 10 of 420 City Council Meeting Minutes July 6, 2026 Page 5 12. Adjourn Motion was made by Lee, seconded by Bermel, to adjourn at 7:38 p.m. Voice vote was taken on the motion. Ayes - Hellier, Bermel, Lee, Volk, Wolter Respectfully Submitted, __________________________________ Ann Orlofsky, City Clerk ____________________________ Luke M. Hellier, Mayor Page 11 of 420 Date: 7/20/2026 Professional Services Proposal from SRF Consulting for the Construction of Voyageur Park Proposed Action Staff recommends adoption of the following motion: Move to approve the professional services proposal from SRF Consulting for the Construction of Voyageur Park. Overview In May of 2022, the Parks, Recreation and Natural Resources Committee Approved the Voyageur Farms Preliminary Plat. The need for a neighborhood park in this service area located east of and adjacent to Cedar Avenue and north of and adjacent to 185th Street was identified in the 2015 Parks, Trails and Open Space Plan. The developer was required to satisfy the Park Dedication contribution at the time of final plat by dedicating 2.11 acres for park space and making a cash contribution to cover the remaining obligation. Now that the final phase of the subdivision has been platted, staff is moving forward with the planning process for the new neighborhood park to be named Voyageur Park in accordance with the department’s standard neighborhood park naming policy. SRF Consulting’s proposal includes facilitating online public engagement, preparing the master plan, and developing construction documents for the park. The total cost of these services would be $56,940.00, funded through Park Dedication funds. Construction of the new neighborhood park is anticipated to be completed in October 2027, per the attached timeline. Supporting Information 1. Voyageur Park Project Timeline 2. Site Map 3. Professional Services Proposal from SRF Consulting for the Construction of Voyaguer Park Financial Impact: $56,940.00 Budgeted: Yes Source: Park Dedication Fund Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and Recreational Opportunities Report Completed by: Joe Masiarchin, Parks and Recreation Director Page 12 of 420 www.srfconsulting.com 3701 Wayzata Boulevard, Suite 100 | Minneapolis, MN 55416-3791 | 763.475.0010 Equal Employment Opportunity / Affirmative Action Employer SRF No. 17833.00 Voyageur Park Master Plan & General Site Improvements Proposed Project Schedule: Online Public Engagement July 17 - August 3, 2026 Preparation of Topographic Survey July 17 - August 3, 2026 Input from Parks and Recreation Commission August 5, 2026 Approved Master Plan August 14, 2026 Design Development August 17 - September 11, 2026 Construction Documents September 14 - October 30, 2026 Plans, Specifications, and Estimate Complete for Bidding October 30, 2026 Ad for Bid to City Clerk Before Noon November 3, 2026 Bid Documents Posted to Quest CDN November 3, 2026 Publish Project in Lakeville Sun This Week November 7, 2026 Bid Opening November 24, 2026 City Council Meeting Approval December 7, 2026 Preconstruction Meeting April 14, 2027 Construction Begins May 17, 2027 Substantial Completion September 17, 2027 Final Completion October 8, 2027 Preparation of As-built Survey October 22, 2027 Page 13 of 420 Dakota County, MN Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Map Scale 1 inch = 300 feet 7/10/2026 Page 14 of 420 www.sr fconsulting.com 3701 Wayzata Boulevard, Suite 100 | Minneapolis, MN 55416-3791 | 763.475.0010 Equal Employment Opportunity/Affirmative Action Employer SRF Project No. 17833.PP July 7, 2026 Joe Masiarchin Parks and Recreation Director City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Subject: Proposal for Professional Services for Neighborhood Park Development (Voyageur Park) Lakeville, MN Dear Joe Masiarchin: Based on your request, SRF Consulting Group, Inc. (“SRF”) is pleased to submit this Proposal to provide professional services for online public engagement, preparation of the master plan, and development of construction documents for Voyageur Park based on the approved master plan. Pioneer Engineering is included as a subconsultant to provide topographic survey services. Scope of Services SRF proposes to carry out the services described as follows: •Prepare topographic survey for the park property. •Utilize interactive online engagement (WikiMapping, SurveyMonkey, or other) to inform the public and gather input on the three concepts prepared under the conceptual design phase. •Prepare summary of comments and input received through online public engagement. •Develop preferred master plan concept based on input received through online public engagement and staff. •Prepare cost estimate for preferred master plan concept. •Provide preferred master plan concept and cost estimate for staff review with Parks and Recreation Commission. •Integrate feedback received from Park and Recreation Commission into final master plan. •Attend final design kick-off meeting with staff to confirm site program and project schedule. •Based on approved master plan, prepare design development plan set including removals, site layout, grading, drainage, site electrical, landscaping, and turf establishment. Page 15 of 420 Joe Masiarchin July 7, 2026 City of Lakeville Page 2 of 4 • Prepare cost estimate for design development plan set. • Attend meeting with staff to review design development plan set. • Coordinate with selected play equipment vendor for development of play equipment and surfacing layout options. Assist staff with selection of preferred layout option. Procurement of play equipment through vendors will utilize state contract or similar purchasing program. Adjust the container layout as needed to best fit the selected play equipment. • Based on feedback received from staff, prepare final construction documents and cost estimate based on the approved design development plan set, including plans, details, and technical specifications addressing removals, site layout, grading, drainage, site electrical, landscaping, and turf establishment. • Attend meeting with staff to review final construction documents and cost estimate. • Prepare Stormwater Pollution Prevention Plan (SWPPP) and prepare NPDES permit application. • Post bidding documents on QuestCDN, monitor contractor interest, and provide responses to contractor inquiries, including preparation of addenda as needed, and attendance at bid opening. Review bids and provide recommendations for contract award. • Attend pre-construction meeting and up to thirteen (13) progress meetings during construction (assuming 90-day construction period). Respond to contractor requests for information, review contractor submittals and pay applications, and provide recommendations to staff. Participate in final walk through and prepare punch list. • Prepare as-built survey for park including georeferenced points and polygons of all assets within the park. Elements to be captured include all structures, amenities, underground utilities, and trails. Survey information shall be provided to the City in shape file format for integration into Cartegraph asset management system. Assumptions The scope of services is based on the following assumptions: • This scope of work does not include wetland delineation or mitigation of wetland impacts. Wetland impacts will be avoided within the project site. • Irrigation design is not included in this scope of work. • Geotechnical investigation is not included in this scope of work. • Construction testing is not included in this scope of work. • The City of Lakeville will provide the following items or tasks: o Mapping or subdivision materials for the surrounding land development (CAD- based). Page 16 of 420 Joe Masiarchin July 7, 2026 City of Lakeville Page 3 of 4 Schedule SRF will complete this work within a mutually agreed-upon time schedule. We understand that the intent is to finalize the construction documents for bidding in late 2026, subject to available funding. Park construction will occur in the spring/summer of 2027. Basis of Payment/Budget We propose to be reimbursed for our services on an hourly basis for the actual time expended. Other direct project expenses, such as printing, supplies, reproduction, etc., will be billed at cost, and mileage will be billed at the current allowable IRS rate for business miles. Invoices are submitted on a monthly basis for work performed during the previous month. Payment is due within 30 days. Based on our understanding of the project and our scope of services, we estimate the cost of our services at $56,940, including both time and expenses. Task Cost Topographic Survey $3,200 Online Public Engagement $2,100 Refinement of Concepts to Approved Final Master Plan $3,520 Design Development $5,880 Construction Documents/Permitting $19,550 Cost Estimating $1,850 Bidding $3,240 Construction Assistance $13,500 As-Built Survey $3,200 Direct Expenses $900 Total $56,940 Changes in Scope of Services It is understood that if the scope or extent of work changes, the cost will be adjusted accordingly. Before any out-of-scope work is initiated, however, SRF will submit a budget request for the new work and will not begin work until you provide authorization. Standard Terms and Conditions The Master Agreement for Professional Engineering Services executed between the City of Lakeville and SRF Consulting Group, Inc., and dated September 20, 2021, together with this Page 17 of 420 Joe Masiarchin July 7, 2026 City of Lakeville Page 4 of 4 proposal for professional services, constitutes the entire agreement between the Client and SRF Consulting Group, Inc., and supersedes all prior written or oral understandings. This agreement may only be amended, supplemented, modified, or canceled by a duly executed written instrument. Acceptance/Notice to Proceed A signed copy of this Proposal, mailed or emailed to Timothy Wold at the address on the first page of this document or at twold@srfconsulting.com, will serve as acceptance of this Proposal and SRF’s notice to proceed. We appreciate your consideration of this Proposal and look forward to working with you on this project. Please feel free to contact us if you have any questions or need additional information. Sincerely, SRF Consulting Group, Inc. Timothy Wold, PLA Mike McGarvey, PLA, ASLA, LEED AP Senior Project Manager Senior Project Director TW/MM/ajs Approved: City of Lakeville Signature: (Acting Mayor, John Bermel) Signature: (Deputy City Clerk, Taylor Snider) Date: This cost proposal is valid for a period of 90 days. SRF reserves the right to adjust its cost estimate after 90 days from the date of this proposal. K:\LArch\tim\Promo\Lakeville - Voyageur Park\17833.PP_Voyageur-NH-Park Final Design_070726-REV.docx Page 18 of 420 June 26, 2026 Revise July 7, 2026 EXHIBIT A Timothy Wold, ASLA, PLA Senior Project Manager, Landscape Architecture | Urban Design SRF Consulting Group 3701 Wayzata Boulevard, Suite 100, Minneapolis, MN 55416-3791 Direct: 763-452-4755 | twold@srfconsulting.com RE: VOYAGER FARM 3RD ADDITION Outlot A (approximately 2.1 acres) – Design topography Lakeville, Minnesota P.E. Project #126088 Dear Timothy Wold: Pioneer Engineering, P.A. (hereinafter called PIONEER) has reviewed the land surveying services for the above referenced site. Please find PIONEER’S proposal for providing those services Timothy Wold, ASLA, PLA Senior Project Manager, Landscape Architecture | Urban Design SRF Consulting Group (hereinafter called CLIENT) outlined below. SERVICES A.Topography Survey 1.Limits of the survey are as follows: a.Outlot A, VOYAGER FARM 3RD ADDITION with a 50-foot overlap. 2.Specific work description is as follows: a.Locate improvements/structures on the site. b.Locate existing underground private utilities (as located by Gopher State One Call and record plans provided by CLIENT). c.Locate 6-inch diameter and larger trees and record diameter and type (coniferous or deciduous). e.Provide 2.0-foot contours. f.Provide and AutoCAD base drawing on Dakota County coordinate system showing improvements, contours and boundary lines (per recorded plats, County Half Section maps, documents and available property corners). TOTAL ESTIMATE COST FOR SECTION A (Billed Hourly) $3,200.00 CLIENT RESPONSIBILITIES A.CLIENT will provide PIONEER with a current title commitment of subject property including current deeds for adjoining properties. B.CLIENT will provide covenants, restrictions and homeowners association documents or other association documents as may be required. C.CLIENT will provide PIONEER with any plottable offsite (i.e., appurtenant) easements or servitudes disclosed in documents not noted in title commitment. D.CLIENT will arrange all necessary access to on site buildings and adjacent buildings as may be required. Page 19 of 420 VOYAGER FARM 3RD ADDITIOB Outlot A (approximately 2.1 acres) – Design topography Lakeville, Minnesota P.E. Project #126088 K:\Projects Main\Projects Main - 1 South Office\2026\126088 VOYAGER FARMS [SRF CONSULTING GROUP] {Lakeville}\126088 VOYAGER FARMS [SRF CONSULTING GROUP] {Lakeville} Ex A 6-26- 26.doc126088 VOYAGER FARMS [SRF CONSULTING GROUP] {Lakeville} Ex A 6-26-26.doc E.PIONEER shall have the right to rely on information contained in documents provided by the CLIENT. F.Printing and delivery costs will be the responsibility of the CLIENT. COMPENSATION The above services for Section A will be provided. Payment shall be remitted within 60 days of invoice date. WORK SCHEDULE PIONEER is prepared to begin work as soon as we receive authorization to proceed. EXTENT OF AGREEMENT This Exhibit A, the attached General Conditions to Contract/Agreement for Professional Services, ALTA/NSPS Survey Standards, PIONEER’S Contract and Fee Schedule, represent the entire and integrated AGREEMENT between the CLIENT and PIONEER. This AGREEMENT can only be amended by written instrument, signed by both the CLIENT and PIONEER. Thank you for the opportunity to submit this proposal. If you have any questions or comments concerning our proposal, please contact me at (651) 251-0619 or Phawkinson@pioneereng.com. Sincerely, PIONEER ENGINEERING, P.A. www.pioneereng.com Peter J. Hawkinson LS Enclosures Page 20 of 420 General Conditions to Contract/Agreement for Professional Services Page 1 of 2 Revised April 2013 J:\ACCOUNTING\MISC CONTRACT FORMS\GENERAL CONDITIONS TO CONTRACT/AGREEMENT GENERAL CONDITIONS TO CONTRACT/AGREEMENT FOR PROFESSIONAL SERVICES SECTION 1. SCOPE OF WORK 1.1 PIONEER ENGINEERING, P.A. (Hereinafter called PIONEER) shall perform the services defined in the contract/agreement, and shall invoice the CLIENT for those services at the rates shown on the attached FEE SCHEDULE. For extended projects, the billing rates may increase on January 1st or each year at an annual rate not to exceed 10%. Any estimate of cost to the CLIENT as stated in the contract/agreement shall not be considered as a firm figure, but only as an estimate, unless otherwise specifically stated in the contract/agreement. PIONEER will provide additional services under the contract/agreement as authorized by the CLIENT and requested by the CLIENT with charges for those additional services invoiced at the stated rates. PIONEER shall, upon written request, provide estimates for construction costs. Construction cost estimates shall not be considered as a firm figure, but only as an estimate. SECTION 2. RESPONSIBILITIES 2.1 PIONEER will not be responsible for the failure of others to perform in accordance with the specifications of contract/agreement documents, and PIONEER services shall in no way relieve others of their responsibilities. 2.2 CLIEN T will make available to PIONEER all known information regarding existing and proposed conditions of the site and project to be undertaken. CLIENT will immediately provide PIONEER with any new information which becomes available to it or its contractors which differs materially from information previously provided, including all changes in plans. PIONEER has the right to rely on the information contained in documents provided by the CLIENT. SECTION 3. ESTIMATED COST 3.1 PIONEER will endeavor to perform the work and accomplish the objectives defined in the scope of work within the estimated costs for services provided and schedule proposed. The estimated costs for services provided and schedule proposed are based on our judgment of the requirements known at the time of the proposal. Successful completion within cost and schedule limits can be influenced - favorably or adversely - by changes in work scope and schedule as dictated by CLIENT needs and unforeseen circumstances. PIONEER will notify the CLIENT in advance if schedule or costs for services provided are expected to exceed the estimate. In such event, the CLIENT may wish to (1) authorize additional funds to complete the work as originally defined, (2) redefine the scope of work in order to fit the remaining funds, or (3) request that work be stopped at a specific expenditure level. If option 3 is chosen, PIONEER will share materials completed at the authorized level without further obligation or liability to either party except for payment for work performed. SECTION 4. PAYMENT, INTEREST AND BREACH 4.1 CLIENT agrees to pay invoice(s) on receipt, and to pay interest on unpaid balances beginning thirty days after invoice date at the rate of 1.5% per month, but not to exceed the maximum rate established by law. 4.2 In the event CLIENT fails to pay PIONEER within 60 days following the invoice date, PIONEER may consider the default a total breach of the contract/agreement and may, at its discretion, terminate all of its duties without liability to PIONEER or others. 4.3 CLIENT agrees to pay all costs incurred in collecting the debt, including all attorney fees. SECTION 5. INSURANCE 5.1 PIONEER will furnish certificates of insurance upon request. If the CLIENT requests increased insurance coverage, PIONEER will take out additional insurance, if obtainable, at the CLIENT’S expense, but shall have no liability beyond the limits and conditions of the insurance coverage. SECTION 6. LIMITATION OF LIABILITY 6.1 In the event PIONEER is held liable for damages, the total cumulative liability of PIONEER, its affiliates, and their respective directors, officers, employees, agents and subcontractors shall not exceed 100% of the gross compensation received by PIONEER, as its fee under the contract/agreement, to a maximum of $20,000.00. 6.2 CLIENT agrees to notify all contractors and others who may perform work in connection with the project of the limitation of liability contained in Section 6.1, and to require as a condition precedent to performing work, the acceptance of a like limitation of liability in favor of PIONEER. In the event CLIENT fails to obtain a like limitation of liability, CLIENT agrees to indemnify PIONEER from and against all liability to contractors and others in excess of the limitation amount. 6.3 In the event CLIENT does not wish to limit PIONEER’S liability, PIONEER agrees to waive the limitation provided for in section 6.1 upon written notice from CLIENT received within five (5) days after the date the contract/agreement is executed, and CLIENT agrees to pay additional consideration equivalent to ten (10) percent of PIONEER’S gross compensation for the project, such consideration to be called a Waiver of Limitation of Liability Charge. This charge will in no way be construed as being a charge for insurance of any type but will be increased consideration for the greater risk involved in performing work for which there is no limitation of liability. SECTION 7. STANDARD OF CARE 7.1 In performing it’s services, PIONEER will use that degree of care and skill ordinarily exercised under similar circumstances by reputable members of it’s profession practicing in the same locality. No other warranty is made or intended. SECTION 8. LIEN RIGHTS 8.1 PIONEER hereby gives notice that, pursuant to Minnesota Statute Chapter 514, and as stated in the contract, it retains the right to file a lien against real property in the event of non-payment of invoices for engineering, landscape architecture, surveying, planning or environmental services performed with respect to the subject property. The lien will be prepared and filed in accordance with pertinent laws of the State of Minnesota. SECTION 9. CONSEQUENTIAL DAMAGES 9.1 Neither PIONEER nor CLIENT will be liable to the other for any indirect, incidental, special or consequential damages (including loss of anticipated profits, business interruption or good will of other economic or commercial loss) relating to the services rendered. Page 21 of 420 General Conditions to Contract/Agreement for Professional Services Page 2 of 2 Revised April 2013 J:\ACCOUNTING\MISC CONTRACT FORMS\GENERAL CONDITIONS TO CONTRACT/AGREEMENT SECTION 10. TERMINATION 10.1 Either PIONEER or CLIENT may terminate the contract/agreement by giving fourteen (14) days written notice to the other party. In the event of such termination, for whatever cause, the CLIENT shall pay PIONEER the costs that PIONEER has incurred to the effective date of termination, including any obligation, commitments, pro rata overhead, profit and unsettled claims plus any charges due and owing by the CLIENT as of the date of termination to include reasonable termination expenses. Upon payment, any and all obligations and liabilities of the parties hereto shall terminate. SECTION 11. OWNERSHIP OF DOCUMENTS 11.1 The original Drawings and Specifications as instruments of the service are, and shall remain, the property of PIONEER, whether the project for which they are made is executed or not. PIONEER is not to reuse these drawings, or any part thereof, for any other client that PIONEER may have, without the written approval of the CLIENT. These drawings are not to be used by the CLIENT on other projects or extensions to this project except by agreement in writing and with appropriate compensation to PIONEER. 11.2 The CLIENT agrees, to the fullest extent permitted by law, to indemnify and hold harmless PIONEER from any claim, liability, or cost resulting from unauthorized use of the drawings or documents by the client or any persons or entities that acquires or obtains the drawings or documents from or through the client without written authorization from PIONEER. SECTION 12. RELATIONSHIP OF PARTIES 12.1 PIONEER will act solely as an independent contractor of the CLIENT and not as the CLIENT agent for any purpose. Neither PIONEER nor the CLIENT may enter into any agreement or assume any obligation for the other, and nothing herein may be construed to establish any partnership, joint venture or principal-agent relationship between PIONEER and the CLIENT. SECTION 13. FORCE MAJEURE 13.1 PIONEER will have no liability for any failure to perform or delay in performance due to any circumstances beyond reasonable control, including, but not limited to, strikes, riots, wars, fire, flood, explosion, acts of nature, acts of government, labor disputes, delays in transportation or inability to obtain material or equipment. In the event of any delay in performance due to any such circumstances, the time for performance will be extended by a period of time necessary to overcome the effect of such delay, and the CLIENT will not be entitled to refuse performance or otherwise be relieved of any obligations. SECTION 14. SUCCESSORS AND ASSIGNS 14.1 The CLIENT and PIONEER each binds itself, its successors, assigns and legal representatives to the other party of the contract/agreement and to the successors, assigns and legal representatives of such other party with respect to all provisions of the contract/agreement. Neither the CLIENT nor PIONEER shall assign, set over or transfer his interest in the contract/agreement, in whole, or in part, without the prior written consent of the other, and any act in derogation hereof, shall, at the option of the non- assigning party, render the written contract/agreement terminated. SECTION 15. ARBITRATION 15.1 All claims, disputes and other matters in question arising out of, or relating to, the contract/agreement or the breach thereof shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then obtaining, unless the parties mutually agree otherwise in writing. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law in the State of Minnesota. Notice of the demand for arbitration shall be filed in writing with the other party to the contract/agreement and with the American Arbitration Association. The demand shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event, shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitation. Arbitration will not limit PIONEER’S mechanic’s lien rights. 15.2 The award rendered by the arbitrators shall be final and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. Arbitration of claims arising from the contract/agreement shall not be consolidated with any other arbitration proceedings except by written consent of the parties. SECTION 16. ENTIRE AGREEMENT 16.1 The CLIENT’S engagement of PIONEER to perform work represents the CLIENT’S acceptance of the terms and conditions contained herein, which constitute the entire understanding between PIONEER and the CLIENT and supersede any previous communication, representations or agreements by either party, whether oral or written. The terms and conditions contained herein take precedence over the CLIENT’S additional or different terms and conditions that may be contained in any purchase order, work order, invoice, gate pass, acknowledgment form, manifest or other document forwarded by the CLIENT to PIONEER to which notice of objection is hereby given. Unless otherwise agreed to in writing by an officer of PIONEER, the CLIENT’S engagement of PIONEER is limited to these terms and conditions. PIONEER’S commencement of performance will not be deemed or construed as acceptance of the CLIENT’S additional or different terms and conditions. 16.2 No change of any of the terms or conditions herein will be valid or binding on either party unless in writing and signed by the owner or an officer of the CLIENT and by an officer of PIONEER. If any of the provisions hereof are invalid under any applicable statute or rule of law, such provisions are, to that extent, deemed omitted, but the remaining terms and conditions of the contract/agreement will remain otherwise in effect. There are no understandings, agreements, representations or warranties, express or implied, that are not specified herein respecting the subject hereof. SECTION 17. APPLICABLE LAW 17.1 The contract/agreement shall be governed by the laws of the State of Minnesota. SECTION 18. EEO/AA 18.1 PIONEER is an Equal Employment Opportunity/Affirmative Action Employer. Page 22 of 420 FEE SCHEDULE Revised 01-01-2026 STAFF TYPE HOURLY RATE CLERICAL STENO 85.00$ PRINCIPAL ENGINEER 200.00$ SENIOR ENGINEER 190.00$ PROJECT ENGINEER II 180.00$ PROJECT ENGINEER I 160.00$ ENGINEER TECHNICIAN II 150.00$ ENGINEER TECHNICIAN I 140.00$ INSPECTOR I 150.00$ PRINCIPAL PLANNER 200.00$ SENIOR PLANNER 190.00$ PLANNER III 180.00$ PLANNER II 160.00$ PLANNER I 140.00$ LANDSCAPE ARCHITECT II 180.00$ LANDSCAPE ARCHITECT I 140.00$ PRINCIPAL SURVEYOR 220.00$ SENIOR SURVEYOR 210.00$ SURVEYOR 190.00$ 1 MAN SURVEY CREW 200.00$ 2 MAN SURVEY CREW 236.00$ 3 MAN SURVEY CREW 280.00$ SURVEYOR COMPUTER TECHNICIAN III 165.00$ SURVEYOR COMPUTER TECHNICIAN II 145.00$ SURVEYOR COMPUTER TECHNICIAN I 130.00$ EXPERT WITNESS - COURT/DEPOSITION TRANSPORTATION $0.72/Mile OUTSIDE SERVICES Cost*1.15 OUT OF POCKET EXPENSES Cost*1.15 J:\Accounting-pefp01\FeeSchedules Page 23 of 420 CONTRACT PROJECT NO.: 126088 ORDER DATE: June 26, 2026 BY: Peter Hawkinson LS DEPT.: Surveying PROJECT NAME: VOYAGER FARM 3RD ADDITION Outlot A CLIENT NAME: SRF Consulting Group PHONE: ORDERED BY: Timothy Wold, ASLA, PLA ADDRESS: 3701 Wayzata Boulevard, Suite 100 CITY: Minneapolis STATE: Minnesota ZIP: 55416-3791 WORK TO BE PERFORMED AND SPECIAL INSTRUCTIONS SEE PROPOSAL EXHIBIT A DATED JUNE 26, 2026 REVISED 6-22-26 ATTACHED SEE GENERAL CONDITIONS TO CONTRACT/AGREEMENT FOR PROFESSIONAL SERVICES ATTACHED SEE FEE SCHEDULE DATED JANUARY 1, 2026 ATTACHED SEE ALTA/NSPS LAND TITLE SURVEY STANDARDS ATTACHED In connection with this contract, the property owner is entitled by law to the following notice: (a)ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO YOUR PROPERTY MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE CONTRIBUTIONS. (b)UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO SUPPLIED LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM OUR CONTRACT PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER COMPLETION OF THE IMPROVEMENT UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED ANY LABOR OR MATERIAL FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE. BASIS FOR FEE CHARGED: ( ) PERCENTAGE OF CONSTRUCTION ( ) HOURLY RATES ( X ) AS PER EXHIBITS/ATTACHMENTS ( ) AS PER INSTRUCTIONS Unless agreed in writing, payment for all invoices shall be due net 30 days, after which interest shall be added at a rate of 1.5% per month to the unpaid balance. Pioneer Engineering, P.A. may stop work progress, file a lien to protect debt, bring suit, or take any other action available to collect the debt if invoices are not paid. Client agrees to pay all costs incurred, including attorney’s fees, in collecting the debt. FIRM NAME (If a business): SIGNED BY (Signature): TITLE OR POSITION: DATE SIGNED DISTRIBUTION: 1ST COPY – RETURN TO PIONEER ENGINEERING; 2ND COPY – CLIENT COPY Page 24 of 420 Date: 7/20/2026 Proposal from Kompani for the Purchase of Playground Equipment for East Community Park Phase II Proposed Action Staff recommends adoption of the following motion: Move to approve proposal from Kompani for the purchase of playground equipment for East Community Park Phase II. Overview Construction of East Community Park Phase II began in late June, this is the final construction project that was approved as part of the 2021 Park Bond Referendum. In 2025, during the planning and design phase, residents in the surrounding neighborhoods were invited to provide recommendations on two master plan concepts. The preferred concept, Heritage Landing, leverages Dakota County’s agricultural history and includes farmstead-themed design elements throughout. The concept includes a shelter with four-season restrooms, community plaza, dog park, farmstead-themed play elements, natural play areas, and a community garden. ISG who has been consulting on the project, leaned into the farmstead-themed elements and presented staff with a custom horse play structure for the new play area. This custom piece is suitable for ages 5-12 years old and includes climbing elements, balance ropes, a slide, overlook areas and will be constructed on poured-in-place surfacing. The 14’ 5” tall structure will provide a one-of-a-kind play experience for park goers. Construction of the new park area will continue through fall of this year and the park will open in 2027. Supporting Information 1. Kompani Final Design Dated June 1, 2026 2. Kompani Sales Proposal Dated July 8, 2026 (2) Financial Impact: $260,947.92 Budgeted: Yes Source: Park Bond Referendum Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and Recreational Opportunities Report Completed by: Joe Masiarchin, Parks and Recreation Director Page 25 of 420 Page 1 of 14 BINDING APPROVAL Mutual agreement for Order purchase. This Design is defined under its own KDS Identification number stated below. All constructional details, dimensions, materials, colours and specifications shown on attached datasheets (plan, side, perspective view + safety zone) are herewith accepted. Changes are no longer possible. Notwithstanding the aforementioned and without changing the overall design, KDS may in the construction phase, without obtaining approval, perform smaller modifications when deemed beneficial or necessary for the project. All other modifications are subject to prior approval. The Order confirmation and lead time will not start unless signed off responsibly by project coordinator. Date SignatureKRS8200581C Designer BarMar Created 6.1.2026 FINAL DESIGN Page 26 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 2 of 14 Bindende Genehmigung für benutzerdefiniertes Design Für alle Käufe ist ein unterzeichneter Vertrag erforderlich. Dieses Design wird unter der oben angegebenen eigenen KOMPAN-Identifikationsnummer definiert. Alle Konstruktionsdetails, Abmessungen, Materialien, Farben und Spezifikationen, die auf den beigefügten Datenblättern angegeben sind (Plan, Seite, perspektivische Ansicht + Sicherheitsbereich), werden hiermit akzeptiert. Änderungen sind nicht mehr möglich. Die Auftragsbestätigung wird erst nach Abzeichnung durch den Projektkoordinator wirksam und erst dann beginnt die Vorlaufzeit. In der Bauphase kann KDS ungeachtet der vorgenannten Ausführungen kleinere Änderungen vornehmen, ohne zuvor eine Genehmigung einholen zu müssen, wenn dabei der Gesamtentwurf nicht geändert wird und wenn die Änderungen für das Projekt als vorteilhaft oder erforderlich erachtet werden. Alle weiteren Änderungen bedürfen der vorherigen Genehmigung. Aprobación vinculante para el diseño personalizado Todas las compras están sujetas a un contrato firmado. Este diseño viene definido por su propio número de identificación de KOMPAN, que se indica más arriba. Mediante el presente documento se aceptan todos los detalles de fabricación, dimensiones, materiales, colores y especificaciones mostrados en las hojas técnicas adjuntas (vista en planta, lateral y en perspectiva + zona de seguridad). No se permitirán cambios. La confirmación del pedido no se hará efectiva y el plazo no empezará a contar hasta que el coordinador de proyectos la firme. Sin perjuicio de lo anterior y sin modificar el diseño general, KDS podrá, durante la fase de construcción y sin aprobación previa, realizar pequeñas modificaciones si estas se considerasen ventajosas o necesarias para el proyecto. Todas las demás modificaciones se someterán a aprobación previa. Approbation contraignante pour la conception personnalisée Tous les achats sont soumis à un accord signé. Ce modèle est défini sous son propre numéro d’identification KOMPAN, qui est indiqué ci-dessus. Tous les détails, dimensions, matériaux, couleurs et spécifications de construction indiqués sur les fiches de données ci-jointes (plan, côté, vue en perspective + zone de sécurité) sont acceptés par la présente. Il n’est plus possible de réaliser des changements. La confirmation de la commande n’entrera pas en vigueur et le délai ne commencera pas tant que le coordinateur du projet ne l’aura pas signée. Nonobstant ce qui précède et sans modifier la conception générale, KDS peut, en phase de construction, sans obtenir d’approbation, effectuer de petites modifications lorsqu’elles sont jugées bénéfiques ou nécessaires pour le projet. Toutes les autres modifications sont soumises à une approbation préalable. 定制化设计审批要求 所有订购均受签字协议约束。本设计采用KOMPAN自有识别号（见以上）。特此接受随附数据表中所示之所有结构细节、尺寸、材料、颜色与规格（平面图、侧视图和 透视图 + 安全区）。不可另行变更。 项目负责人签字后，订单确认方可生效，并开始计算生产周期。 尽管存在上述规定，在不改变整体设计的情况下，若 KDS 认为对项目有利或必要时，可以在施工阶段进行小幅修改，无需审批。其他所有修改则需要事先获得批准。 Page 27 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 3 of 14 Design ASTM F1487 / 5–12 years Inground Footing / Inground Steel Footing ADA not required Page 28 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 4 of 14 Design ASTM F1487 / 5–12 years Inground Footing / Inground Steel Footing ADA not required Page 29 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 5 of 14 Design ASTM F1487 / 5–12 years Inground Footing / Inground Steel Footing ADA not required Page 30 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 6 of 14 Activities Net Transfer Balance Ropes Membrane Flaps Hang-out Membrane Rock Climber Peak Holes 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. Page 31 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 7 of 14 Activities Slide PE H1780 HDPE Butterflies 7. 8. 7. 8. Page 32 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 8 of 14 Main Materials Robinia Steel construction Grips Membrane HDPE Elements Ropes BlackBlack Green Rainbow Green EPDM Brown Medium Green Beige Brown Yellow White Untreated Natural Wood Green NCS S 3030-G40Y Green NCS S 2020-G50Y Green NCS S 4040-G40Y Brown NCS S 8010-Y50R Brown NCS S 7020-Y40R Brown NCS S 5040-Y50R Galvanized Steel Brown Page 33 of 420 KRS8200581C ** 1 4 ' - 5 " [ 4 4 1 c m ] *5 ' - 1 0 " [ 1 7 8 c m ] FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 9 of 14 EN 1176 Max. fall height: XXcm / Total height: XXcm AS 4685 Max. fall height: XXcm / Total height: XXcm ASTM F1487 Max. fall height: X’-X” [XXcm] / Total height: X’-X” [XXcm] CSA Z614 Max. fall height: X’-X” [XXcm] / Total height: X’-X” [XXcm] EN 16630 Max. fall height: XXcm / Total height: XXcm ASTM F3101 Max. fall height: X’-X” [XXcm] / Total height: X’-X” [XXcm] Sideview ASTM F1487 Max. fall height: 5’-10” [178cm] / Total height: 14’-5” [441cm] Page 34 of 420 6'-0" [ 1 8 3 c m ] 30'-11" [943cm] 19'-0" [580cm] 6 ' - 0 " [ 1 8 3 c m ] 6'-0" [183cm] 6 ' - 0 " [ 1 8 3 c m ] 22 ' - 1 0 " [ 6 9 7 c m ] 34 ' - 1 0 " [ 1 0 6 2 c m ] * 5'-10" / 178cm ***683.5ft² / 63.5m² KRS8200581C ** 14'-5" / 441cm FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 10 of 14 Footprint EN 1176 Max. fall height: XXcm / Total height: XXcm / Fall space area: X.Xm² AS 4685 Max. fall height: XXcm / Total height: XXcm / Fall space area: X.Xm² ASTM F1487 Max. fall height: X’-X” [XXcm] / Total height: X’-X” [XXcm] / Use zone area: XXft² [X.Xm²] CSA Z614 Max. fall height: X’-X” [XXcm] / Total height: X’-X” [XXcm] / Use zone area: XXft² [X.Xm²] EN 16630 Max. fall height: XXcm / Total height: XXcm / Fall space area: X.Xm² ASTM F3101 Max. fall height: X’-X” [XXcm] / Total height: X’-X” [XXcm] / Use zone area: XXft² [X.Xm²] ASTM F1487 Max. fall height: 5’-10” [178cm] / Total height: 14’-5” [441cm] / Use zone area: 683.5ft² [63.5m²] Page 35 of 420 FI N A L D E S I G N KO M P A N D e s i g n S t u d i o Copyright 2025 KOMPAN A/S, all rights reserved. KR S 8 2 0 0 5 8 1 C SUBJECT TO MODIFICATIONS – PRODUCTS CAN VARY FROM SHOWN PRESENTATION.Page 11 of 14 Design Rights All design rights belong to Kompan. Dispensation from this can only be given by Kompan Group Management and requires a written confirmation. Warranty The Product is covered by the general KOMPAN Warranty. Maintenance and After Sales Support Products should be maintained according to the instructions in the KOMPAN Maintenance Manual delivered with the product. In case maintenance requires spare parts please take contact to Business Support. Products are not included in the Kompan Master. Installation Installation instruction will not be available within the same scope as KOMPAN standard products. Supervised installation can therefore be required using experienced staff from the KOMPAN Design Studio production Team. The extend of supervision will be accessed according to the respective product and will be stated separately in the Quotation by the KOMPAN Design Studio. Dispensation from this can only be given by Kompan Design Studio and requires a written confirmation. Safety and Compliance The product is delivered with a Kompan Compliance Statement. On site compliance inspection is mandatory. Products from KOMPAN Design Studio are unique products designed for this particular purpose. They are designed in accordance with the requirements of the safety standard relevant for the market or the one specified as preferred. KDS products are not certified. The products are evaluated for compliance in both design and engineering phase and the results documented in a compliance statement. For EN1176 / AS4685 a verification of the layout from TÜV Product Service GmbH can be supplied as well. Final confirmation of compliance must be done on site. General Conditions Page 36 of 420 Copyright 2025 KOMPAN A/S, all rights reserved. Page 37 of 420 City of Lakeville Lakeville, MN 55044 Joe Masiarchin Email Sales Representative JohEng@Kompan.com John Engfer Quote No. Document Date SP163504-7 07/08/2026 Sales Proposal Expiration Date 09/06/2026 Project Name US341107 City of Lakeville- East Community Park Customer No.C131614 No.Description Qty Unit Unit Price Net Price OMNIA Partners Contract #2017001135 Equipment US-KRS-CUSTOM KOMPAN KRS CUSTOM VARIANT 1 Pieces 213,631.00 213,631.00 FREIGHT Freight 1 Pieces 20,308.10 20,308.10 INSTALL SPECIAL Installation of KOMPAN Equipment 1 Pieces 25,964.91 25,964.91 US ROBINIA SERVICE Robinia Service Program included in sales price Surfacing US-PIP-50-50- CUSTOM Supply and Install Pour In Place Surfacing and Subbase 1,171 Sq. Feet 33.86 39,650.06 Aromatic Binder, 4" subbase, frt & security KOMPAN, INC. | 605 W Howard Lane Ste 101 | Austin, TX 78753 | USA | Phone No. 1-800-426-9788 E-Mail Contact@KOMPAN.com | www.KOMPAN.us SWIFT Code NDEAUS3N (Nordea Bank, NY | Bank Account No. USD 718 155 3001 | Routing No. 026010786) Page 1 of 4 Page 38 of 420 City of Lakeville Lakeville, MN 55044 Joe Masiarchin Email Sales Representative JohEng@Kompan.com John Engfer Quote No. Document Date SP163504-7 07/08/2026 Sales Proposal Expiration Date 09/06/2026 Project Name US341107 City of Lakeville- East Community Park Customer No.C131614 No.Description Qty Unit Unit Price Net Price Notes Please read attached General Assumptions and Exclusion document for information on Install/Sitework. Excludes sitework, products, & services not listed. Assumes site to be accessible & install ready. Please allow 35-37 weeks for product delivery upon order placement. Equipment is as per "East Community Park" Site Plan version "K1.0" - dated 12/22/25 Description Net PriceQty No. of Products 1 Subtotal - Products 181,586.3532,044.65 Subtotal - Surfacing 35,685.053,965.01 Subtotal - Installation 23,368.422,596.49 Subtotal - Freight 20,308.10 Subtotal 299,554.07 Project Discount Amount -38,606.15 Total USD 260,947.92 Business Agreement OMNIA Partners Contract Payment Terms 50% Prepayment , 50% Net 30 days Installation Site Address City of Lakeville- East Community Park 16700 Pilot Knob Rd Farmington, MN 55024 KOMPAN, INC. | 605 W Howard Lane Ste 101 | Austin, TX 78753 | USA | Phone No. 1-800-426-9788 E-Mail Contact@KOMPAN.com | www.KOMPAN.us SWIFT Code NDEAUS3N (Nordea Bank, NY | Bank Account No. USD 718 155 3001 | Routing No. 026010786) Page 2 of 4 Page 39 of 420 City of Lakeville Lakeville, MN 55044 Joe Masiarchin Email Sales Representative JohEng@Kompan.com John Engfer Quote No. Document Date SP163504-7 07/08/2026 Sales Proposal Expiration Date 09/06/2026 Project Name US341107 City of Lakeville- East Community Park Customer No.C131614 KOMPAN, INC. | 605 W Howard Lane Ste 101 | Austin, TX 78753 | USA | Phone No. 1-800-426-9788 E-Mail Contact@KOMPAN.com | www.KOMPAN.us SWIFT Code NDEAUS3N (Nordea Bank, NY | Bank Account No. USD 718 155 3001 | Routing No. 026010786) Page 3 of 4 Page 40 of 420 City of Lakeville Lakeville, MN 55044 Joe Masiarchin Email Sales Representative JohEng@Kompan.com John Engfer Quote No. Document Date SP163504-7 07/08/2026 Sales Proposal Expiration Date 09/06/2026 Project Name US341107 City of Lakeville- East Community Park Customer No.C131614 Note that the color and texture of products and surfacing made with recycled content are subjected by the differences from the used recycled raw materials. Therefore, minor differences in the appearance and texture can occur. Applicable sales tax will be added unless a valid tax exemption certificate is provided. This amount is only an estimate of your tax liability. Your acceptance of this proposal constitutes a valid order request and includes acceptance of terms and conditions contained within this Master Agreement, which is hereby acknowledged. Acceptance of this proposal from KOMPAN is acknowledged by issuance of an order confirmation by an authorized KOMPAN representative. Prices in this quotation are good until expiration date, shown in the top of this document. After that date, this proposal may be withdrawn. Prevailing Wage and Payment & Performance Bonds are not included unless stated in body of Sales Proposal. If Payment & Performance Bonds are needed, add 2.2% of the entire sales proposal. This information required for order placement: Accepted By (Please Print): __________________________________________________ Accepted By (Title): __________________________________________________________ Accepted By (signature): ____________________________________________________ Date: ________________________________________________________________________ Date Equipment needed on site: __________________________________ Bill To: _______________________________________________________ Ship To: ____________________________________________________________ Address: _____________________________________________________ Address: ___________________________________________________________ City, State, Zip: ______________________________________________ City, State, Zip: _____________________________________________________ Contact: _____________________________________________________ Contact: ____________________________________________________________ Contact Email: _______________________________________________ Contact Email: ______________________________________________________ Contact Phone (Office): _____________________________________ Contact Phone (Office): ____________________________________________ Contact Phone (Cell): ______________________________________________ SALES TAX EXEMPTION CERTIFICATE #: ____________________________________________________________ (PLEASE PROVIDE A COPY OF CERTIFICATE) KOMPAN, INC. | 605 W Howard Lane Ste 101 | Austin, TX 78753 | USA | Phone No. 1-800-426-9788 E-Mail Contact@KOMPAN.com | www.KOMPAN.us SWIFT Code NDEAUS3N (Nordea Bank, NY | Bank Account No. USD 718 155 3001 | Routing No. 026010786) Page 4 of 4 Page 41 of 420 Date: 7/20/2026 Approve Change Order 2 for the Miscellaneous Street Improvements Project Proposed Action Staff recommends adoption of the following motion: Move to approve change order #2 in the amount of $195,000 for the 2026 Miscellaneous Improvements Project, City Project 26-01. Overview On April 6, 2026 the City Council awarded a construction contract for the 2026 Miscellaneous Improvements Project. Included in the project were street and utility improvements in part of the downtown area. Over the past few years, Utility staff has been working with the Minnesota Department of Health and the EPA to report and replace any lead or galvanized water service lines that may exist in Lakeville. This spring, 13 services were determined to need replacement in the downtown project area which are in the Miscellaneous Street Project area. City staff saw this as a good opportunity to combine this work and gain efficiencies while reducing the overall total cost of the needed water service line replacements. Staff worked with the contractor to negotiate the replacements of these 13 services and incorporate the water service line replacements into the already planned work of the project. The change order has an estimated cost for each service line replacement. However, actual costs will be billed on a time and materials basis as every water line service scope of work is unique to each residence. This work would then be completed prior to any other street repair work thus keeping restoration costs to a minimum. The change order in the total amount of $195,000 would allow these necessary replacements to be made. The Water Fund was budgeted in 2026 for this work and would finance all costs associated with the change order. Staff recommends approval of change order 2. Supporting Information 1. 7.15.26 - 26-01 CHANGE ORDER 2 Financial Impact: $195,000 Budgeted: Yes Source: Water Operating Fund Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Steve Ferraro, Public Works Coordinator Page 42 of 420 CITY OF LAKEVILLE CHANGE ORDER NO. 2 CHANGE ORDER DATE 7/9/2026 SHEET Page 1 of 2 PROJECT NO. 26-01 PROJECT NO. 26-01 PROJECT NO. 26-01 CONTRACTOR McNamara Contracting Inc PROJECT NAME 2026 214th Street Reconstruction Project CONTRACTOR McNamara Contracting Inc PROJECT NAME 2026 Miscellaneous Project CONTRACTOR McNamara Contracting Inc PROJECT NAME 2026 Trail Gaps Project ADDRESS 16700 Chippendale Ave Rosemount, MN 55068 TYPE OF WORK Change Order 2 ORIGINAL CONTRACT AMOUNT $3,604,247.90 REVISED CONTRACT AMOUNT $3,799,247.90 Spec. No. Item No. Item of Work Unit Original Previous Change Quantity Quantity Unit Price Increase Amount Decrease Amount 351 351 LEAD WATER SERVICE REMOVAL AND REPLACEMENT EACH 0 13.00 $15,000.00 $195,000.00 0.00 Net Increase or Decrease: $195,000.00 Totals $195,000.00 $0.00 Due to this change, the contract time: •a: is increased/decreased by 0 working days. is increased/decreased by 0 calendar days. ►b: is not changed. •c: may be revised if the work affects/affected the controlling operation EXPLANATION OF CHANGE IN PLAN RECOMMENDED (Attach additional sheets if necessary) This change order is for the removal and replacement of the lead/galvanized waterlines in the project's Downtown Area. The unit price is an estimate as every replacement is site specific and the actual work will be billed and paid for on a time-and-materials basis. CONTRACTOR SIGNATURE DATE ACTING MAYOR SIGNATURE DATE DEPUTY CITY CLERK SIGNATURE DATE CONSTRUCTION REPRESENTATIVE SIGNATURE DATE 7/9/2026 Page 43 of 420 Date: 7/20/2026 Right of Entry and Memorandum of Understanding for Facility Evaluation Study with McKinstry Proposed Action Staff recommends adoption of the following motion: Move to approve Right of Entry and Memorandum of Understanding for Facility Energy Evaluation Study with McKinstry. Overview McKinstry has proposed conducting a no-cost energy assessment on City-owned facilities. This assessment will help the City allocate resources efficiently, align facility improvements with strategic goals, identify potential federal and state grants and ensure public facilities are responsive to the community's evolving needs. The evaluation will include all major building systems including mechanical, electrical, plumbing, building envelope, and building controls. This comprehensive review will identify the current condition of each facility, highlight maintenance and replacement needs and prioritize both near-term and long-term capital improvements. As part of the assessment, McKinstry will also identify applicable federal and state utility incentive programs that may help offset the cost of future facility and energy improvement projects. The primary deliverable will be a report summarizing the condition of City-owned facilities, identifying potential energy efficiency and capital improvement projects and outlining funding opportunities. The report will serve as the foundation for a long-term capital improvement strategy that supports both current operations and the City's future growth. Supporting Information 1. _Right of Entry Agreement 2. MOU- Exhibit A Financial Impact: None Budgeted: No Source: N/A Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Paul Oehme, Public Works Director Page 44 of 420 239681v1 RIGHT OF ENTRY AGREEMENT THIS RIGHT OF ENTRY AGREEMENT (“Agreement”) is made this 13 day of July, 2026, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“Grantor”) and MCKINSTRY ESSENTION, LLC, a Washington limited liability company (“Grantee”). RECITALS A.Grantor is the fee owner of real property located in the City of Lakeville, County of Dakota, State of Minnesota (“City Property”); and B.Grantor and Grantee seek to evaluate the feasibility of implementing energy, sustainability, and facility improvements to City Property in context of available funding opportunities; and C.Grantee wishes to enter onto City Property for the purpose of conducting a preliminary energy evaluation as set forth in the parties’ Memorandum of Understanding executed ______________________ and attached as Exhibit A (“Permitted Use”); and D.Grantor is willing to allow Grantee to engage in the Permitted Use according to the terms and conditions provided in this Agreement. NOW, THEREFORE, in consideration of the mutual promises of the parties contained in this Agreement, the parties agree as follows: 1.Right of Entry. The City authorizes Grantee, its employees, agents, or Grantees, to enter upon City Property, without charge, beginning on 07/13/2026 and automatically terminating at 7:00 p.m. on 10/01/2026 (the “Termination Date”). Grantee’s right to enter shall be conditioned upon seeking prior approval from the City’s Public Works Director for each date and time when it seeks entry onto City Property, which approval shall not be unreasonably withheld, conditioned or delayed. There shall be no renewal of this Agreement. If the Permitted Use is not completed by the Termination Date, a new right of entry agreement shall be required. 2.Permitted Use. The Permitted Use includes the right to enter onto City Property for the sole purpose of conducting a preliminary energy evaluation as set forth in Exhibit A, including bringing such equipment onto City Property as is commercially reasonable for this purpose. Other than the foregoing, Grantee shall not conduct any invasive testing, inspections, or investigations of City Property without the prior consent of Grantors, which consent shall not be unreasonably withheld, conditioned or delayed. To the extent Grantee reasonably requires access to secured areas of City Property for the Permitted Use, Grantee shall coordinate with the City’s Public Works Director and any other City officials or employees so that Grantee may be escorted through such areas in compliance with applicable rules, regulations, or laws related to the safety and security of such areas. Page 45 of 420 239681v1 3.Responsibilities of Grantee. Grantee shall make all reasonable efforts to minimize any conflicts with the City’s or public’s use of City Property. Grantee shall pay for the costs of all tests, appraisals, and inspections of City Property conducted by Grantee, its employees, agents, or Grantees. Grantee will provide Grantor with copies of reports related to the results of such inspections or tests. Grantee shall, at its sole expense, keep City Property in a neat, clean and safe condition in the exercise of its rights under this Agreement and will not make any alterations to City Property without the prior written approval of Grantor. Grantee shall, at its sole expense, remove all its equipment from City Property and restore the City Property to its original condition, including replacement of damaged improvements or structures, prior to the Termination Date. 4.Hold Harmless and Indemnification. Grantee shall indemnify and hold Grantor, its officials, employees, agents, and Grantees harmless from claims, actions, damages, and costs, including reasonable attorneys’ fees, pertaining to personal injury and property damage caused by the negligence or willful misconduct of Grantee or its employees, agents, or Grantees in conducting the Permitted Use, including but not limited to those arising from payment of third parties performing work or inspections on the City Property, mechanics liens, or other similar claims. Grantee’s indemnification obligation shall survive the termination of this Agreement. 5.Insurance. Grantee, at its expense, shall maintain the insurance coverage included in Exhibit B for the duration of this Agreement. 6.Scope of Right of Entry. The grant of right of entry to the Grantee by Grantor shall not confer any estate, title, or exclusive possessory rights in City Property to Grantee or its successors, assigns, employees, agents, or Grantees. 7.Notices. All notices and demands required under this agreement shall be in writing and shall be deemed given when personal delivered or sent by first class mail, addressed to the parties: City: City of Lakeville Public Works Department Attn: Paul Oehme, Public Works Director 18400 Ipava Avenue Lakeville, MN 55044 Grantee: McKinstry Essention, LLC Attn: Eric Runez, Regional Director, Midwest Energy 1600 Utica Ave S Minneapolis, MN 8.No Assignment. Grantee may not assign its rights to use City Property or any portion of City Property without the prior written consent of the City. 9.Governing Law; Venue. This Agreement shall be governed and enforced in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Dakota County. Page 46 of 420 239681v1 10.Binding Authority. The individual executing this Agreement represents that they are authorized by Grantee to sign this Agreement on behalf of Grantee and bind Grantee to the terms of this Agreement. 11.Incorporation of Recitals and Exhibits. The Recitals at the beginning of this Agreement and the Exhibits at the end of this Agreement, are each one true and correct, and are incorporated and made part of this Agreement. IN WITNESS WHEREOF, the Grantor and Grantee have each caused this Agreement to be duly executed in their name and on their behalf by the individuals below, on or as of the date first written above. GRANTOR: CITY OF LAKEVILLE By: ________________________________ John Bermel, Acting Mayor By: ________________________________ Taylor Snider, Deputy City Clerk GRANTEE: MCKINSTRY ESSENTION, LLC By: [printed name] Its: [printed title] DRAFTED BY: CAMPBELL KNUTSON, P.A. Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP/PNA Page 47 of 420 239681v1 EXHIBIT A TO RIGHT OF ENTRY AGREEMENT [attach MOU] Page 48 of 420 239681v1 EXHIBIT B TO RIGHT OF ENTRY AGREEMENT Insurance Requirements Grantee, at its expense, shall procure and maintain in force for the duration of this Agreement the following minimum insurance coverages: A.General Liability. The Grantee agrees to maintain commercial general liability insurance in a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products completed operations, personal injury, advertising injury, and contractually assumed liability. Grantor shall be endorsed as additional insured. B. Automobile Liability. If the Grantee operates a motor vehicle in performing the Services under this Agreement, the Grantee shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000 combined single limit. C. Workers’ Compensation. The Grantee agrees to provide workers’ compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. The Grantee shall also carry employers liability coverage with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Grantee shall, prior to commencing the Services, deliver to Grantor a Certificate of Insurance as evidence that the above coverages are in full force and effect. The insurance requirements may be met through any combination of primary and umbrella/excess insurance. All insurance shall be provided on an occurrence basis and not on a claims-made basis, except professional liability insurance or other coverage not reasonably available on an occurrence basis; provided that all such claims-made coverage is subject to the approval of Grantor. All insurance limits of any policy in excess of the minimum limits shall be available to Grantor. All policies, except professional liability, shall be endorsed with a waiver of subrogation in favor of the Grantor, including its elected and appointed officials, employees, and agents for losses arising from activities under this Agreement. Page 49 of 420 239681v1 Deductibles and self-insured retentions in excess of $50,000 must be declared to and approved by Grantor. Grantor may require the Grantee to provide proof of ability to pay losses and related expenses within the deductible and retention. The Grantee’s policies shall be the primary insurance to any other valid and collectible insurance available to Grantor with respect to any claim arising out of Grantee’s performance under this Agreement. The Grantee’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days advanced written notice to the Grantor, or ten (10) days’ written notice for nonpayment of premium. The Grantee shall obtain insurance policies from insurance companies having an “AM BEST” rating of A- (minus); Financial Size Category (FSC) VII or better, and authorized to do business in the State of Minnesota, or as approved by Grantor. Failure to maintain required insurance coverage may result in suspension of work or termination of this Agreement. Please review these requirements with your insurance agent or broker for assurance that the mandatory types and limits of insurance coverages are in place. Grantor’s failure to approve or disapprove the Grantee’s policies or certificates shall not relieve the Grantee of full responsibility to maintain the required insurance. All insurance policies must be open to inspection by Grantor, and copies of policies must be submitted to Grantor’s authorized representative upon written request. If the coverage period shown on the Grantee's current certificate(s) of insurance ends during the duration of the project, the Grantee must, prior to the end of the coverage period, obtain a new certificate of insurance showing that coverage is in effect. No representation is made that the minimum insurance requirements are sufficient to cover the obligations of the Grantee under this Agreement. The Grantee’s insurance shall not limit its indemnification obligation to Grantor under this Agreement. Page 50 of 420 PAGE 1 OF 4 MCKINSTRY.COM Memorandum of Understanding Preliminary Energy Evaluation for the City of Lakeville July 10, 2026 City of Lakeville 20195 Holydyke Ave Lakeville, MN 55044 This jointly authored Memorandum of Understanding (MOU) is to confirm the interest of the City of Lakeville in working with McKinstry Essention LLC (McKinstry) to evaluate the viability of implementing energy, sustainability, and facility improvement measures; alignment with federal, state, local, utility funding opportunities; and to address the below stated building infrastructure initiatives or needs for the City. Customer Objectives To receive assistance in evaluating the feasibility of energy, sustainability, and facility improvement measures that will allow the City to implement an impactful project and to evaluate the viability for federal, state, local, and utility funding opportunities. Customer Deliverables The customer agrees to assist McKinstry in the development of the Preliminary Energy Evaluation by providing: a) Meetings with the McKinstry team b) Confirmation of the City’s energy, sustainability, planning, and resiliency interests c) Guidance and accessibility with site visit(s) d) Background information – facility, planning, and utility information e) City feedback, recommendations, and guidance f) City approval to proceed with application(s) for funding as needed / appropriate Preliminary Energy Evaluation Deliverables to be provided by McKinstry Preliminary Energy Evaluation summary of findings in presentation format (10-30 pages) a) Executive summary outlining proposed solutions, potential outcomes, and benefits b) Final presentation report detailing proposed solutions, potential outcomes, and benefits c) Project cost estimates d) Green House Gas (GHG) and Carbon reduction potential e) Solar production potential (if applicable) f) Energy savings potential g) Job creation impact (Local/MBE/WBE/DBE, etc.) – if appropriate h) Sketches / pictures / photos of proposed solutions i) Follow-up with federal, state, local, utility funding opportunities and to assist on any questions regarding project scope / details, as needed j) Others as agreed upon by both parties Page 51 of 420 PAGE 2 OF 4 MCKINSTRY.COM Proposed Tasks to Complete the Work Task Summary 1) PROJECT INITIATION AND PRELIMINARY AUDIT a) Project Kick Off Meeting i) Review project goals, objectives, and desired outcomes ii) Review opportunities that align with funding opportunities – as this legislation continues to evolve quickly iii) Establish key project milestones and timeline iv) Collection/ review of background information b) Initial Scoping Workshop i) Work with the City and its team to identify viable project components (sites/ locations/ solutions) that align with an energy / sustainability project– such as: (1) Review sites for renewable energy and energy storage (2) Review sites for electric vehicle (EV) charging (3) Review opportunities for energy efficiencies (4) Review ‘unique’/ Net Zero opportunities (5) Review CIP (Capital Improvement Plan) items that impact energy for potential inclusion. (6) Review other potential items for consideration/ evaluation c) Site Visit for 1-3 days (with guidance from the City) i) Visit building/ site locations as identified at the Initial Scoping Workshop (or other) ii) McKinstry will enter into a right of entry prior to site visits in a form approved by the City. 2) PRELIMINARY DEVELOPMENT WORK a) Scope Selection i) McKinstry to provide initial scope recommendations for the City’s review and feedback. ii) Work with the City to approve final scope selection. b) Preliminary Development Work i) McKinstry to further develop/ design deliverables for selected sites/ locations/ solutions. 3) PROJECT DELIVERY a) Meetings / Presentations (to be staggered to allow appropriate completion and advocacy of the work) i) Review the various federal, state, local, utility funding opportunities – as appropriate ii) Progress meetings as required for City feedback iii) Review Draft Preliminary Energy Evaluation Summary Presentation/ Report iv) Presentation(s) to the City Leadership (Sustainability Commission and Council) and Executive Team (Sustainability staff leads and City Manager) b) Final Deliverables (as defined above) i) Recommended energy, sustainability, and facility improvement solutions ii) Preliminary Energy Evaluation Presentation Report Page 52 of 420 PAGE 3 OF 4 MCKINSTRY.COM Proposed Team The below list of McKinstry Team members will be assigned to this project and will be available to jointly work with the City and its team to develop this project. Additional team members may be assigned or substituted as needed. TEAM MEMBER ROLE CERTIFICATIONS YEARS OF EXPERIENCE Adam Seidel Account Executive 7 years John Neville, PE, CEM, GBE, CSDP Business Development Director Licensed Professional Engineer (P.E.), Wisconsin No. E-23299 Certified Energy Manager (CEM) Green Building Engineer (GBE) Certified Sustainability Design Professional (CSDP) 30 years Kathryn Pearson Energy Engineer Energy Engineer Certified Energy Manager (CEM) 5 years Sean Currie Project Development Manager LEED Green Associate (LEED GA) 29 years Chris Sawyer Project Manager Certified Energy Manager (CEM) 20 years David Rheineck, CEM, CLEP Building Energy Program Manager, Lighting Solutions Certified Energy Manager (CEM) Certified Lighting Efficiency Professional (CLEP) 11 years Eric Rehm, MBA Development Director, Renewable Energy MBA 24 years Paul Gustafson Project Engineer Professional Engineer (PE) 20 years Mayur Patel Director of Engineering Certified Energy Manager (CEM) 20 years Bob Long McKinstry Project Consultant Attorney 20 years Page 53 of 420 PAGE 4 OF 4 MCKINSTRY.COM Proposed Timeline Provide the above proposed work as expeditiously as the work allows. And, to coincide with the respective due dates for funding opportunities (as appropriate). Compensation No compensation will be required by the City to McKinstry under this MOU. The project deliverables as defined in Task Summary 3) Project Delivery b) Final Deliverables provided by McKinstry under this MOU will be owned by the City. It is understood and agreed that the deliverables will be a report of a high level overview of potential projects and will not be any final scope or design, and will not be appropriate for any construction, repair, or design applications or use. Such deliverables will not come with any warranty, and any further use of the deliverables will be at the City’s sole risk. By signing below, the City of Lakeville and McKinstry agree that this MOU adequately captures the intent of the Preliminary Energy Evaluation as well as both parties’ interest in partnering throughout the process. Acceptance: Acceptance: City of Lakeville McKinstry Essention LLC Signed Signed Printed Name Printed Name Title Title Date Date Eric Runez Regional Director, Midwest Energy 07.14.2026 Page 54 of 420 Date: 7/20/2026 Contract for Heritage Center HVAC Roof Top Unit Replacement Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with William Bishop Holdings LLC to replace Roof Top Unit-10 at the Heritage Center. Overview The Heritage Center rooftop unit (RTU) 10 has experienced multiple heating and cooling issues over recent seasons, resulting in inconsistent performance and increased maintenance demands. The unit has reached an age where it is no longer operating reliably and continued repairs are no longer cost-effective. Due to the frequency of breakdowns and the unit’s overall condition, staff recommend full replacement to restore dependable HVAC service within the facility. A new RTU will provide improved efficiency, reduced operating costs, and greater reliability, ensuring the building remains comfortable and functional for community use. Supporting Information 1. Quote Tabulation 2. _Agreement William Bishop Holdings Financial Impact: $13,856.00 Budgeted: Yes Source: Facility CIP Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tom Breeggemann Facility Supervisor Page 55 of 420 Contractor Base Price Add Alt 1 Total Addendum Acknoledgements Pioneer Power llc $24,620.00 N/A $24,620.00 Yes Hi-Tech Refrigeration $13,856.00 N/A $13,856.00 yes Archer Mechanical $17,522.00 N/A $17,522.00 Yes Bauernfeind Goedtel $16,635.00 N/A $16, 635 Yes Quote Tabulation Heritage Center Packaged RTU-10 Replacement Page 56 of 420 215047v2 1 NON-BID CONTRACT FOR PURCHASE OF GOODS AND SERVICES AGREEMENT made this 20th day of July 2026, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City") and WILLIAM BISHOP HOLDINGS, INC., a Minnesota corporation, dba HI-TECH REFRIDGERATION (“Contractor”). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1.CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A.This Agreement. B.RTU 10 Replacement RFQ (Exhibit A) C.RTU 10 Replacement RFQ Amendment 1 (Exhibit B) D.Responsible Contractor Verification (Exhibit C) E.Contractors Completed Quote Form (Exhibit D) In the event of a conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts. Contract Document “A” has the first priority and Contract Document “E” has the last priority. 2.CONTRACTOR OBLIGATIONS. The Contractor shall provide the goods, services and perform the work in accordance with the Contract Documents for installation of new roof top unit 10 (RTU 10), at City of Lakeville Heritage Center. Contractor shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do all things necessary and ancillary thereto specified in the Contract Documents. This contract may be terminated by the City at any time upon discovery by the City that the Contractor or any of its subcontractors has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn. Stat. § 16C.285, Subdivision 3, the Responsible Contractor statute. 3.CONTRACTOR’S REPRESENTATIONS. A.Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B.Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. C.Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. D.The Contract Documents are generally sufficient to indicate and convey Page 57 of 420 215047v2 2 understanding of all terms and conditions for performance and furnishing of the Work. 4. COMPENSATION. Contractor shall be paid by the City for the goods and services described in exhibit C, but not to exceed: thirteen thousand, eight hundred and fifty-six dollars and zero cents. ($13,856.00) which is inclusive of reimbursable expenses. The fee shall not be adjusted even if the estimated number of hours to perform a task, or any other estimate, assumption or matter is wrong or exceeded. Payment shall be made periodically after a service has been completed and within thirty-five (35) days of receipt of an invoice. 5. COMPLETION DATE. The Contractor shall complete the Work on or before December 31st 2026. 6. WARRANTY. The Contractor guarantees that all warranties as specified in the Quote shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship. In addition to the warranties required in the specifications the Contractor provides the following warranties. The Contractor is responsible for any and all defects in workmanship and materials and upon notification by the City shall immediately replace or repair the defective workmanship and materials without cost to the City. The Contractor warrants that only new unused materials will be used. The Contractor further warrants to the City that all materials and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. These warranties are in addition to any manufacturer's standard warranty, and any warranty provided by law. 7. RIGHTS AND REMEDIES. A. The duties and obligations imposed by the Contract Documents, and the rights and remedies available thereunder shall be in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. B. No action, or failure to act, by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of, or acquiescence in, any breach there under, except as may be specifically agreed in writing. 8. INSPECTION AT DELIVERY. At the point of delivery, the City will have the right inspect the goods for compliance with the Contract Documents prior to installation. As the result of the inspection, the City will: A. Accept the goods subject to an inspection report requiring correction; or B. Refuse to make payment until corrections are complete. 9. CHANGES TO WORK. Without invalidating the Contract, the City may, at any time, or from time to time, order additions, deletions or revisions in the work provided under this Agreement; these will be authorized by an amendment to the Contract. Upon approval of an amendment, Contractor shall proceed with the work provided under the amendment. Changes in the Contract Price shall be based upon the prices identified in the Quote provided or negotiated between the parties based on similar work provided in the Proposal. Page 58 of 420 215047v2 3 10.UNAUTHORIZED WORK. Additional work performed without authorization of an amendment of this Contract will not entitle Contractor to an increase in the Compensation or an extension of the Contract. 11.DOCUMENTS. The City shall be the owner of all documents, reports, studies, analysis and the like prepared by the Contractor in conjunction with this contract. 12.COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of goods and services to be provided. 13.STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional Contractor under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. 14.INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Contractor’s negligence or its performance or failure to perform its obligations under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts Contractor may be liable. Contractor agrees this indemnity obligation shall survive the completion or termination of this Contract. 15.INSURANCE. Prior to the start of the project, Contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Page 59 of 420 215047v2 4 Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Contractor’s insurance must be “Primary and Non-Contributory”. All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of insurance. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 16. INDEPENDENT CONTRACTOR. The City hereby retains the Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. The Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance under this Agreement. City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 17. SUBCONTRACTORS. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Contractor shall comply with Minnesota Statute § 471.425. Contractor must pay Subcontractor for all undisputed services provided by Subcontractor within ten days of Contractor’s receipt of payment from City. Contractor must pay interest of 1.5 percent per month or any part of a month to Subcontractor on any undisputed amount not paid on time to Subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 18. ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. Page 60 of 420 215047v2 5 19. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 20. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 21. CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 22. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 23. RECORDS/AUDIT. The Contractor shall maintain complete and accurate records of time and expense involved in the performance of services. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of City and Contractor relevant to the Agreement are subject to examination by City and Contactor, and either the Legislative Auditor or the State Auditor as appropriate. City and Contractor agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 24. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by the Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 25. TERMINATION. This Agreement may be terminated by City on two (2) days’ written notice delivered to Contractor at the address on file with the City. Upon termination under this provision if there is no fault of the Contractor, the Contractor shall be paid for goods and services rendered and reimbursable expenses until the effective date of termination. If the City terminates the Agreement because the Contractor has failed to perform in accordance with this Agreement, no further payment shall be made to the Contractor, and the City may retain another Contractor to undertake or complete the work identified in this Agreement. Page 61 of 420 215047v2 6 Dated:__________________, 2026 CITY OF LAKEVILLE By: John Bermel, Acting Mayor And: Taylor Snider, Deputy City Clerk Dated:__________________, 2026 WILLAIM BISHOP HOLDINGS INC. By: Print Name:_________________________________ Its:________________________________________ Page 62 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov Request for Quote Replacement of RTU-10 Project 1.Project Overview The City of Lakeville is requesting quotes for the removal and replacement of the existing RTU- 10 at the heritage center. The project includes replacing one (1) existing 2.5 ton packaged RTU, and all associated electrical, piping, ducting, insulation, controls, rigging, and ancillary work necessary for a complete and operational system. RFQ Issued:6/18/2026 Mandatory Project Walkthrough 7/02/2026 10AM Heritage Center RFQ Due:7/13/2026 Council Approval 7/20/2026 2.Project Location Lakeville Heritage Center 2110 Holyoke Ave Lakeville, Minnesota 55044 3. Scope of Work Provide all labor, materials, equipment, permits, supervision, and services required for a complete code compliant RTU, including but not limited to the following: 1.Packaged RTU Replacement •Remove and properly dispose of one (1) 2.5 Ton RTU. •Furnish and install one (1) 2.5 ton RTU. •RTU shall be: o New, factory-assembled, UL listed o 2.5 ton Cooling capacity o Natural Gas Heat exchanger o 75,000 Heating input BTU’s o Supply fan only o 208v-230v/60/1 o Minimum EER 11.2 o BACnet controls Exhibit A Page 63 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov o Aaon, Daikin, Trane, Bryant •Include all required gas piping modifications, venting, refrigerant line piping, condensate piping, supports, curbing, offsets, and appurtenances required for proper operation. •Install RTU per manufacturer requirements and applicable codes. •Provide startup, combustion analysis, and commissioning by a factory-authorized technician. •Provide O&M manuals, startup documentation, and manufacturer warranties. 2.Piping, Valves, and Accessories •Existing piping, valves, and accessories may be reused if determined to be in good working condition. •Contractor shall evaluate existing piping, valves, fittings, and appurtenances and notify the Owner of any components requiring replacement. •Provide new piping, valves, fittings, and accessories only as required to accommodate new equipment, meet manufacturer requirements, or correct deficiencies. •Any replaced components shall meet current code and manufacturer requirements. 3.Insulation •Provide insulation on all new piping and on any existing piping where insulation is removed or damaged during construction. •Insulation shall match or exceed existing type and thickness. 4.Controls & Integration •Controls to be completed by city of Lakeville’s automation contractor St. Cloud Refrigeration (SCR). •Contractor to coordinate work with St. Cloud Refrigeration (SCR) . •St. Cloud Refrigeration (SCR) to invoice City directly. 5.System Charging •Charge new RTU with proper amount of refrigerant. •Test RTU for proper reading on pressure gauge. •Test RTU for proper function Page 64 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov 6.Crane, Rigging, and Demolition •Provide all rigging, crane services, permits, and coordination required for removal of existing RTU and installation of new equipment. •All crane and rigging costs shall be included in the base bid. •Existing RTU to be properly discharged of all refrigerant before removal 4. General Requirements •Comply with all applicable local, state, and federal codes. •Obtain all required permits and inspections. •Coordinate shutdowns with the Owner and minimize downtime. •Protect existing building, equipment, and finishes. •Leave the system complete, tested, commissioned, and ready for operation. 5.Exclusions (Unless Specifically Noted Otherwise) •Temporary HVAC systems •Electrical service upgrades beyond reconnecting to existing power •Building automation system upgrades beyond required integration 6.Schedule •Contractor shall provide an anticipated project schedule with the proposal. •Work shall be coordinated to minimize disruption to building operations. •Final schedule subject to Owner approval. 7.Submittals The successful bidder shall provide: •Equipment cut sheets •Startup and commissioning Reports •Warranty information Page 65 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov 8.Quote Requirements Quotes shall include: •Lump sum cost for all work described •Breakdown of major components (RTU, crane, labor, etc.) •Estimated lead times for equipment •Project schedule •Contractor Verification of Compliance •Acknowledgement of any Addendums issued 11.Addendums •Addendums will be issued via email to contractors no later then 7 days before proposals are due. 12. Questions All questions shall be submitted via email to: City of Lakeville Tom Breeggemann Facility Supervisor TBreeggemann@Lakevillemn.gov 952-985-2630 All question are to be asked 7 days before proposal due date to issue timely Addendums Page 66 of 420 City of Lakeville Positioned to Thrive ADDENDUM NO. 1 Project Name: Heritage RTU 10 Date: July 7, 2026 To: Interested Parties From: Tom Breeggemann Facility Supervisor Subject: Addendum No. 1 – Revisions and Clarifications 1.Purpose of Addendum This Addendum modifies and clarifies the original documents issued for the referenced project. This Addendum is considered part of the contract documents and shall be incorporated into the final agreement. 2.Description of Changes -Item 1: Heating output adjusted to include a 70,000btu unit -Item 2: For design or engineering inquiries, the City will issue the RFI to a City-approved engineering firm. It is the contractor’s responsibility to submit an RFI to the City, ensuring all necessary information is included, such as equipment make, model, size, weight, installation specifications, and power requirements. 3.Acknowledgment All contractors must acknowledge receipt of this Addendum in their proposal or bid submission. Failure to do so may result in disqualification. Issued By Tom Breeggemann Facility Supervisor Exhibit B Page 67 of 420 INITIAL CONTRACTOR VERIFICATION OF COMPLIANCE INITIAL VERIFICATION By signing this document I certify that I am an owner or officer of the company, and I swear under oath that: My company meets each of the minimum criteria in subclauses (1) – (6) of Minn. Stat. § 16C.285, subd. 3, the Responsible Contractor statute. The undersigned understands that a failure to meet or verify compliance with the minimum criteria established for a “responsible contractor” as defined in Minn. Stat. § 16C.285, subd. 3, renders a bidder ineligible to be awarded a construction contract for the Project or to perform work on the Project. The undersigned understands that a false statement under oath verifying compliance with any of the minimum criteria shall make the undersigned, ineligible to be awarded a construction project and may result in termination of a contract awarded to the undersigned. A contracting authority shall not be liable for declining to award a contract or terminating a contract based on a reasonable determination that the contractor failed to verify compliance with the minimum criteria or falsely stated that it meets the minimum criteria. I have attached a list of all of my company’s first-tier subcontractors that it intends to retain for work on the project. Date: Contractor: By (please print name) Signature (please sign name) Its Exhibit C Page 68 of 420 SUBCONTRACTORS LIST SUBCONTRACTORS LIST PROJECT TITLE: Attach Additional Sheets if Necessary Contractor: By (please print name) Signature (please sign name) Its Page 69 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov Quote FORM Packaged RTU-10 Replacement Project: Packaged RTU-10 Replacement Location: Lakeville Heritage Center, 20110 Holyoke Ave, Lakeville MN 55044 Owner: City of Lakeville Contractor: ______________________________ Date: ________________________________ The undersigned contractor proposes to perform the work described in the Contract Documents for the prices listed below. BASE BID – LUMP SUM PRICING Item Description Price 1 Packaged RTU (1 total) $____________ 2 Crane & Rigging – Equipment removal and installation, including permits and coordination $____________ 3 Labor- All, mechanical labor not otherwise itemized $ ___________ 4 Labor- Electrical labor not otherwise itemized $ ___________ BASE BID TOTAL Mobilization Included: $________________________________ Exhibit D Page 70 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov ADDENDUM ACKNOLEDGEMENTS addendum 1 addendum 2 addendum 3 addendum 4 addendum 5 NO SUBSTITUTIONS •Bids shall be based solely on the specified equipment. •No substitutions for the specified Aaon, Daikin, Trane, Bryant will be accepted. •Any bid submitted with proposed substitutions may be considered non-responsive and rejected at the Owner’s discretion. CONTRACTOR ACKNOWLEDGEMENTS •Base Quote includes all labor, materials, equipment, permits, crane costs, and services required for a complete and operational system. •Existing piping, valves, and accessories may be reused if in good working condition. •All work shall comply with applicable codes and manufacturer requirements. •Pricing includes startup, testing, and commissioning. Contractors Signature: ______________________________ Printed Name & Title: __________________________ Company Name: ________________________________ Phone / Email: ________________________________ Page 71 of 420 Date: 7/20/2026 Contract for Boiler Plant Replacement at the Fine Arts Building Proposed Action Staff recommends adoption of the following motion: Move to approve a contract with Willian Bishop Holdings LLC for the replacement of the fine arts building boiler plant, with add alternate #1 to replace the system pumps and add variable frequency drives. Overview The boiler system at the Fine Arts Building has reached the end of its serviceable life. The existing Slant-Fin boilers are no longer supported, as the manufacturer is out of business and replacement components are no longer available. Currently, three of the four boilers remain operational only through temporary repair measures and overall system reliability continues to decline. Given these conditions, ongoing maintenance is no longer practical or cost-effective. Replacement of the boiler plant is necessary to ensure consistent heating, operational reliability and safety within the facility. The proposed new boiler system will utilize modern, high-efficiency boilers designed to improve energy performance, reduce operational costs and enhance system reliability. This upgrade aligns with the City’s long-term goals of investing in energy-efficient infrastructure and reducing maintenance demands across municipal facilities. Staff solicited quotes from three qualified contractors. William Bishop’s Hoeling Inc. submitted the lowest total quote at $112,953.00, which includes replacement of the system pumps equipped with variable frequency drives to support improved energy efficiency and system control. This project is not currently included in the 2026 budget; however, sufficient funding is still available due to savings from various other projects within the Facilities 2026 CIP. Supporting Information 1. Contract 2. Quote Tabulation Financial Impact: $112,953.00 Budgeted: No Source: 2026 Facility CIP Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tom Breeggemann, Facility Supervisor Page 72 of 420 215047v2 1 NON-BID CONTRACT FOR PURCHASE OF GOODS AND SERVICES AGREEMENT made this 20th day of July 2026, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ("City") and WILLIAM BISHOP HOLDINGS, INC., a Minnesota corporation, dba HI-TECH REFRIDGERATION (“Contractor”). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1.CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A.This Agreement. B.Boiler Plant Replacement RFQ (Exhibit A) C.Boiler Plant Replacement RFQ Amendment 1 (Exhibit B) D.Responsible Contractor Verification (Exhibit C) E.Contractors Completed Quote Form (Exhibit D) In the event of a conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts. Contract Document “A” has the first priority and Contract Document “D” has the last priority. 2.CONTRACTOR OBLIGATIONS. The Contractor shall provide the goods, services and perform the work in accordance with the Contract Documents for installation of new condensing boilers, along with Add Alt #1 for new system pumps with VFD’s at City of Lakeville Fine Arts Building. Contractor shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do all things necessary and ancillary thereto specified in the Contract Documents. This contract may be terminated by the City at any time upon discovery by the City that the Contractor or any of its subcontractors has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn. Stat. § 16C.285, Subdivision 3, the Responsible Contractor statute. 3.CONTRACTOR’S REPRESENTATIONS. A.Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B.Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. C.Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. Page 73 of 420 215047v2 2 D.The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 4.COMPENSATION. Contractor shall be paid by the City for the goods and services described in exhibit C, but not to exceed: one hundred and twelve thousand, nine hundred and fifty- three dollars and zero cents. ($112,953.00) which is inclusive of reimbursable expenses. The fee shall not be adjusted even if the estimated number of hours to perform a task, or any other estimate, assumption or matter is wrong or exceeded. Payment shall be made periodically after a service has been completed and within thirty-five (35) days of receipt of an invoice. 5.COMPLETION DATE. The Contractor shall complete the Work on or before December 31st 2026. 6.WARRANTY. The Contractor guarantees that all warranties as specified in the Quote shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship. In addition to the warranties required in the specifications the Contractor provides the following warranties. The Contractor is responsible for any and all defects in workmanship and materials and upon notification by the City shall immediately replace or repair the defective workmanship and materials without cost to the City. The Contractor warrants that only new unused materials will be used. The Contractor further warrants to the City that all materials and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. These warranties are in addition to any manufacturer's standard warranty, and any warranty provided by law. 7.RIGHTS AND REMEDIES. A.The duties and obligations imposed by the Contract Documents, and the rights and remedies available thereunder shall be in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. B.No action, or failure to act, by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of, or acquiescence in, any breach there under, except as may be specifically agreed in writing. 8.INSPECTION AT DELIVERY. At the point of delivery, the City will have the right inspect the goods for compliance with the Contract Documents prior to installation. As the result of the inspection, the City will: A.Accept the goods subject to an inspection report requiring correction; or B.Refuse to make payment until corrections are complete. 9.CHANGES TO WORK. Without invalidating the Contract, the City may, at any time, or from time to time, order additions, deletions or revisions in the work provided under this Agreement; these will be authorized by an amendment to the Contract. Upon approval of an amendment, Contractor shall proceed with the work provided under the amendment. Changes in Page 74 of 420 215047v2 3 the Contract Price shall be based upon the prices identified in the Quote provided or negotiated between the parties based on similar work provided in the Proposal. 10. UNAUTHORIZED WORK. Additional work performed without authorization of an amendment of this Contract will not entitle Contractor to an increase in the Compensation or an extension of the Contract. 11. DOCUMENTS. The City shall be the owner of all documents, reports, studies, analysis and the like prepared by the Contractor in conjunction with this contract. 12. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of goods and services to be provided. 13. STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional Contractor under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. 14. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Contractor’s negligence or its performance or failure to perform its obligations under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts Contractor may be liable. Contractor agrees this indemnity obligation shall survive the completion or termination of this Contract. 15. INSURANCE. Prior to the start of the project, Contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability Page 75 of 420 215047v2 4 $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Contractor’s insurance must be “Primary and Non-Contributory”. All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of insurance. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 16. INDEPENDENT CONTRACTOR. The City hereby retains the Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. The Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance under this Agreement. City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 17. SUBCONTRACTORS. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Contractor shall comply with Minnesota Statute § 471.425. Contractor must pay Subcontractor for all undisputed services provided by Subcontractor within ten days of Contractor’s receipt of payment from City. Contractor must pay interest of 1.5 percent per month or any part of a month to Subcontractor on any undisputed amount not paid on time to Subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 18. ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. Page 76 of 420 215047v2 5 19. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 20. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 21. CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 22. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 23. RECORDS/AUDIT. The Contractor shall maintain complete and accurate records of time and expense involved in the performance of services. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of City and Contractor relevant to the Agreement are subject to examination by City and Contactor, and either the Legislative Auditor or the State Auditor as appropriate. City and Contractor agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 24. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by the Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 25. TERMINATION. This Agreement may be terminated by City on two (2) days’ written notice delivered to Contractor at the address on file with the City. Upon termination under this provision if there is no fault of the Contractor, the Contractor shall be paid for goods and services rendered and reimbursable expenses until the effective date of termination. If the City terminates the Agreement because the Contractor has failed to perform in accordance with this Agreement, no further payment shall be made to the Contractor, and the City may retain another Contractor to undertake or complete the work identified in this Agreement. Page 77 of 420 215047v2 6 Dated:__________________, 2026 CITY OF LAKEVILLE By: Luke M. Hellier, Mayor And: Taylor Snider, Assistant to the City Administrator Dated:__________________, 2026 WILLAIM BISHOP HOLDINGS INC. By: Print Name:_________________________________ Its:________________________________________ Page 78 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov Request for Quote Replacement of RTU-10 Project 1.Project Overview The City of Lakeville is requesting quotes for the removal and replacement of the existing Boiler system at the Lakeville Area Fine Arts Building. The project includes replacing four (4) existing 375,000 BTU slant fin boilers, and all associated electrical, piping, venting, insulation, controls, and ancillary work necessary for a complete and operational system. RFQ Issued: 6/05/2026 Mandatory Walkthrough 6/16/2026 11am Fine Arts Building RFQ Due: 6/22/2026 Contract Issues 6/23/2026 Council Approval 7/6/2026 2.Project Location Lakeville Area Arts Building Fine Arts Building 20950 Howland Ave W Lakeville, Minnesota 55044 3. Scope of Work Provide all labor, materials, equipment, permits, supervision, and services required for a complete code compliant boilers, including but not limited to the following: i.Boiler Replacement •Remove and properly dispose of four (4) 375,000 BTU boilers. •Furnish and install 4 (4) 375,000 BTU equivalent condensing boilers . •Boilers shall be: o New, factory-assembled, UL listed o Condensing o Natural Gas o 375,000 Heating input BTU’s o Cascading Exhibit A Page 79 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov o 120v/60/1 o BACnet controls o Riello, Aerco, Navien •Include all required gas piping modifications, venting, condensate piping, supports, curbing, and appurtenances required for proper operation. •Install boiler per manufacturer requirements and applicable codes. •Provide startup, combustion analysis, and commissioning by a factory-authorized technician. •Provide O&M manuals, startup documentation, and manufacturer warranties. ii.Piping, Valves, and Accessories •Existing piping, valves, and accessories may be reused if determined to be in good working condition. •Contractor shall evaluate existing piping, valves, fittings, and appurtenances and notify the Owner of any components requiring replacement. •Provide new piping, valves, fittings, and accessories only as required to accommodate new equipment, meet manufacturer requirements, or correct deficiencies. •Any replaced components shall meet current code and manufacturer requirements. iii.Insulation •Provide insulation on all new piping and on any existing piping where insulation is removed or damaged during construction. •Insulation shall match or exceed existing type and thickness. iv.Controls & Integration •Controls to be completed by city of Lakeville’s automation contractor St. Cloud Refrigeration (SCR). •Contractor to coordinate work with St. Cloud Refrigeration (SCR) . •St. Cloud Refrigeration (SCR) to invoice City directly. v.System Filling and Start Up •Fill new boilers with proper amount of 40% Propylene Glycol. •Glycol mixture provided by the city. •Test boilers for proper reading on pressure gauge. •Test boilers for proper function Page 80 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov vi.Crane, Rigging, and Demolition •Provide all rigging, crane services, permits, and coordination required for removal of existing boilers and installation of new equipment. •All crane and rigging costs shall be included in the base bid. vii.Alternates •provide Alternate to replace existing system pumps. 4. General Requirements •Comply with all applicable local, state, and federal codes. •Obtain all required permits and inspections. •Coordinate shutdowns with the Owner and minimize downtime. •Protect existing building, equipment, and finishes. •Leave the system complete, tested, commissioned, and ready for operation. 5.Exclusions (Unless Specifically Noted Otherwise) •Temporary HVAC systems •Electrical service upgrades beyond reconnecting to existing power •Building automation system upgrades beyond required integration 6.Schedule •Contractor shall provide an anticipated project schedule with the proposal. •Work shall be coordinated to minimize disruption to building operations. •Final schedule subject to Owner approval. 7.Submittals The successful bidder shall provide: •Equipment cut sheets •Startup and commissioning Reports •Warranty information Page 81 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 LakevilleMN.gov 8.Quote Requirements Quotes shall include: •Lump sum cost for all work described •Breakdown of major components (boilers, crane, labor, etc.) •Estimated lead times for equipment •Project schedule •Contractor Verification of Compliance •Acknowledgement of any Addendums issued 9.Addendums •Addendums will be issued via email to contractors no later then 5 days before proposals are due. 12.Questions All questions shall be submitted via email to: City of Lakeville Tom Breeggemann Facility Supervisor TBreeggemann@Lakevillemn.gov 952-985-2630 All question are to be asked 7 days before proposal due date to issue timely Addendums Page 82 of 420 City of Lakeville Positioned to Thrive ADDENDUM NO. 1 Project Name: Fine Arts Boilers Date: July 7, 2026 To: Interested Parties From: Tom Breeggemann Facility Supervisor Subject: Addendum No. 1 – Revisions and Clarifications 1.Purpose of Addendum This Addendum modifies and clarifies the original documents issued for the referenced project. This Addendum is considered part of the contract documents and shall be incorporated into the final agreement. 2.Description of Changes -Item 1: Venting: It is the City’s preference to have boilers share a common vent. -Item 2: The existing water heater shall remain. All piping, venting, and any ancillary components required for its proper operation are the contractor’s responsibility to modify as needed. -Item 3: It is the City’s preference that the contractor use the manufacturer’s drawings for proper plant design. The contractor shall furnish all manufacturer-provided drawings required for the plant design. -Item 4: Valves: It is the City’s preference that the existing tie-in isolation valves be reused if they are in proper working condition. Any valves required within the new plant design shall be new. -Item 5: For any additional design or engineering inquiries not supported by manufacture, the City will issue the RFI to a City-approved engineering firm. It is the contractor’s responsibility to submit an RFI to the City, ensuring all necessary information is included, such as equipment make, model, size, weight, installation specifications, and power requirements. 3.Acknowledgment All contractors must acknowledge receipt of this Addendum in their proposal or bid submission. Failure to do so may result in disqualification. Issued By Tom Breeggemann Facility Supervisor Exhibit B Page 83 of 420 INITIAL CONTRACTOR VERIFICATION OF COMPLIANCE INITIAL VERIFICATION By signing this document I certify that I am an owner or officer of the company, and I swear under oath that: My company meets each of the minimum criteria in subclauses (1) – (6) of Minn. Stat. § 16C.285, subd. 3, the Responsible Contractor statute. The undersigned understands that a failure to meet or verify compliance with the minimum criteria established for a “responsible contractor” as defined in Minn. Stat. § 16C.285, subd. 3, renders a bidder ineligible to be awarded a construction contract for the Project or to perform work on the Project. The undersigned understands that a false statement under oath verifying compliance with any of the minimum criteria shall make the undersigned, ineligible to be awarded a construction project and may result in termination of a contract awarded to the undersigned. A contracting authority shall not be liable for declining to award a contract or terminating a contract based on a reasonable determination that the contractor failed to verify compliance with the minimum criteria or falsely stated that it meets the minimum criteria. I have attached a list of all of my company’s first-tier subcontractors that it intends to retain for work on the project. Date: Contractor: By (please print name) Signature (please sign name) Its Exhibit C Page 84 of 420 SUBCONTRACTORS LIST SUBCONTRACTORS LIST PROJECT TITLE: Attach Additional Sheets if Necessary Contractor: By (please print name) Signature (please sign name) Its Page 85 of 420 Quote FORM Boiler Plant Replacement Project: Boiler Plant Replacement Location: Lakeville Area Art Center, Fine Arts Building, 20950 Howland Ave W, Lakeville MN 55044 Owner: City of Lakeville Contractor: ______________________________ Date: ________________________________ The undersigned contractor proposes to perform the work described in the Contract Documents for the prices listed below. BASE BID – LUMP SUM PRICING Item Description Price 1 Boilers (4 total) $____________ 2 Crane & Rigging – Equipment removal and installation, including permits and coordination $____________ 3 Labor- All, mechanical labor not otherwise itemized $ ___________ 4 Labor- Electrical labor not otherwise itemized $ ___________ BASE BID TOTAL Mobilization Included: $________________________________ Exhibit D Page 86 of 420 Item Description Price Alternate 1. System Pumps and VFD’s $___________ ADDENDUM ACKNOLEDGEMENTS addendum 1 addendum 2 addendum 3 addendum 4 addendum 5 NO SUBSTITUTIONS •Bids shall be based solely on the specified equipment. •No substitutions for the specified Reillo Condexa Pro, Aerco AM, Navien, will be accepted. •Any bid submitted with proposed substitutions may be considered non-responsive and rejected at the Owner’s discretion. CONTRACTOR ACKNOWLEDGEMENTS •Base Quote includes all labor, materials, equipment, permits, crane costs, and services required for a complete and operational system. •Existing piping, valves, and accessories may be reused if in good working condition. •All work shall comply with applicable codes and manufacturer requirements. •Pricing includes startup, testing, and commissioning. Contractors Signature: ______________________________ Printed Name & Title: __________________________ Company Name: ________________________________ Phone / Email: _______________________________ Page 87 of 420 Contractor Base Price Add Alt 1 Total Addendum Acknoledgements Pioneer Power llc $139,000.00 $33,200.00 $172,200.00 Yes William Bishop Holdings LLC $99,705.00 $13,248.00 $112,953.00 yes Faribo Plumbing $99,500.00 $19,000.00 $118,500.00 Yes Quote Tabulation Fine Arts Building Boiler Plant Replacement Page 88 of 420 Date: 7/20/2026 Proposal from Southern Aluminum for the Purchase of Tables for the John Hennen Pavilion Proposed Action Staff recommends adoption of the following motion: Move to approve purchase of tables from Southern Aluminum. Overview Over the last three rental seasons at the John Hennen Pavilion, the existing tables have caused numerous issues for renters and staff. Staff is recommending the purchase of new, more durable tables that will be easier for renters to set up and take down. After exploring offerings from several vendors and gathering feedback, Southern Aluminum was recommended. The attached proposal includes the purchase of 15 60-inch round tables and storage racks. The funding will be reallocated from Heritage Center’s 2026 improvements, which have been postponed at this time. The tables that are still in good condition will be given to the Keokuk Liquor Store/Emporium Room for use in their rentals. Supporting Information 1. Southern Aluminum Proposal Dated July 6, 2026 (1) Financial Impact: $17,336.00 Budgeted: No Source: Heritage Center CIP Envision Lakeville Community Values: Access to a Multitude of Natural Amenities and Recreational Opportunities Report Completed by: Susan Johnson, Recreation Manager Page 89 of 420 Quote Number: 702132 QuotationSOUTHERN ALUMINUM PO BOX 884 Magnolia AR 71754 USA Phone: 800-221-0408 www.southernaluminum.com Date:7/6/2026 Expires:8/5/2026 Sales Person:Stacie Brice This is not an invoice. Terms subject to credit approval. Ship To: (CTYLKANT) City of Lakeville - Antlers Park 20141 Ipava Avenue Lakeville, MN 55044 USA Quote To: (CTYLKANT) City of Lakeville - Antlers Park Susan Johnson 20141 Ipava Avenue Lakeville MN 55044 USA 952.985.4610 smjohnson@lakevillemn.gov Phone: Email: Bill To: (CTYLKV) City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 USA TIPS: 230301 United States Dollar Line Part / Description Expected Qty Unit Price Ext. Price 1 AL60RDPHL-TBD 60" Round Alulite Folding Table with H Style Leg - Black Matte Paint Color: TBD 15 795.00 11,925.00EA 2 TT72NR-P Large Round Narrow GHD Table Truck 3 1,471.00 4,413.00EA TT72NR-P *(5) Table Capacity* *Loaded Table Cart Dimensions – 31.5" W x 72 1/2"L* QUOTE - Miscellaneous Charge - Description Ext. Price 998.00Freight1) Lines Total:16,338.00 Quote Total $ 17,336.00 Quote Miscellaneous Charges:998.00 Page:1 of 2Entered by: sugarintegration Salesperson: Stacie Brice Page 90 of 420 Quote Number: 702132 QuotationSOUTHERN ALUMINUM PO BOX 884 Magnolia AR 71754 USA Phone: 800-221-0408 www.southernaluminum.com Date:7/6/2026 Expires:8/5/2026 Sales Person:Stacie Brice This is not an invoice. Terms subject to credit approval. LEGAL TERMS AND CONDITIONS PRICE: Quoted Pricing in U.S. Dollars, EX WORKS/F.O.B. Origin COMMENTS: The prices in this quote are valid for 30 days from the date of this quote. We reserve the right to correct any material errors contained herein. For orders shipping outside of the U.S., this quote EXCLUDES applicable taxes, custom duties, detention, demurrage, and clearing costs. This must be coordinated with your broker. Southern Aluminum will provide appropriate export documentation. It is the responsibility of the forwarder and/or customs broker to file the appropriate documentation for importation and clearance. FREIGHT: For U.S. shipments only: any estimated freight is to destination ONLY; it does not include additional delivery equipment, i.e., lift gate, inside delivery, set-up or packing materials disposal, etc. Freight is for standard packaging. Palletization requests will incur additional fees and increased freight charges. If delivery equipment is required for delivery, additional charges may apply. Freight prices are subject to change based on actual shipping charges. For shipments outside the U.S.: estimated freight will be provided upon request to forwarder, port, or destination. TERMS: Net 30 days with approved credit for orders being delivered in the U.S. Advance Payment for orders being delivered outside the U.S. TRANSPORTATION RESPONSIBILITY: Southern Aluminum products are shipped F.O.B. origin from Magnolia, Arkansas. This means that the buyer, and not the seller, owns the goods and carries all the risk of loss or damage after the goods leave the factory. It is the buyer's responsibility to inspect the shipment upon delivery before accepting delivery in good condition. Any damage, visible or concealed, must be noted on the carrier's delivery receipt in the presence of the driver. This should be done before signing the delivery receipt accepting the goods in good condition. Upon delivery, cartons should be inspected for any visible damage that may have occurred in transit. Promptly (within 3 business days) report to the delivering carrier or Southern Aluminum any obvious tears in cartons or damage to contents. DELIVERY: Southern Aluminum assumes no liability for damages on account of delay in delivery resulting from any cause whatsoever beyond its reasonable control. NOTE: All quotations and agreements are contingent upon absence of strikes, accidents, fires, availability of materials and all other causes beyond our control. Prices are based on costs and conditions existing on date of quotation and are subject to change by the Seller before final acceptance. Typographical errors are subject to correction. Conditions not specifically herein shall be governed by established trade customs. Terms inconsistent with those stated herein which may appear on Purchaser's formal order will not be binding on the seller. THANK YOU - WE ARE EAGER TO PARTNER WITH YOU. Dated: ____________, 2026. By: ________________________________ John Bermel, Acting Mayor And: _______________________________ Taylor Snider, Deputy City Clerk In lieu of a purchase order, please sign/date above after reviewing our legal terms. Page:2 of 2Entered by: sugarintegration Salesperson: Stacie Brice Page 91 of 420 Date: 7/20/2026 Accepting Donation from the Lakeville Public Safety Foundation Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution to accept a donation of Bereavement Baskets and K-9 Patches to the Lakeville Police Department. Overview The Lakeville Police Department submitted two grant requests to the Lakeville Public Safety Foundation: • (20) Bereavement Baskets - Valued at $2,500. • (200) K-9 Patches - Valued at $500. The Bereavement Baskets grant was requested to enhance the support provided to community members experiencing the loss of a loved one. Following a death investigation, the Lakeville Police Department, along with our Chaplains and Social Services Team, provides follow-up support and connects families with available resources. Through a partnership with Brantley's Bereavement Baskets, an organization that works with several South Metro law enforcement agencies, grieving families can receive a thoughtfully assembled basket containing items such as hand-sewn blankets, neck wraps, journals, grief resources, and other comfort items. These baskets provide meaningful, tangible support and encouragement to those experiencing loss in our community. The K-9 Patches grant was requested to expand our community outreach and increase awareness of the Lakeville Police Department K-9 Unit through custom K-9 patches. The patches represent our specialized K-9 unit while providing a recognizable way for community members to identify and support the program. The Lakeville Public Safety Foundation will oversee the sale of these patches, with the proceeds returning to the Lakeville Public Safety Foundation, to support the Lakeville Police Deparmtnet K-9 fund. These patches will be available for purchase at community events throughout the year. Both of these grants have been approved by the Lakeville Public Safety Foundation. Supporting Information 1. Bereavement Basket Grant App&Narrative 4.15.26 2. K9 Patches Grant Application & Narrative 7.1.26 Page 92 of 420 Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Safety Throughout the Community Report Completed by: Brad Paulson, Cheif of Police Page 93 of 420 CITY OF LAKEVILLE RESOLUTION NO._________ ACCEPTING DONATION FROM THE LAKEVILLE PUBLIC SAFETY FOUNDATION WHEREAS, MN Statute 465.03 requires that cities accept donations for the benefit of their citizens in accordance with the terms prescribed by the donor; and WHEREAS, the City of Lakeville’s Police Department has received a donation from Lakeville Public Safety Foundation for (20) Bereavement Baskets and (500) K-9 Pathces in total valued at $3,000.00; and WHEREAS, the donation is beneficial to the police department. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, that the donation is hereby officially accepted and acknowledged with gratitude to the donor; and BE IT FURTHER RESOLVED that City staff is authorized to amend the budget to comply with grant agreements and restricted donations. ADOPTED by the Lakeville City Council this 20th day of July 2026. CITY OF LAKEVILLE: _________________________ Luke M Hellier, Mayor ATTEST: _________________________ Ann Orlofsky, City Clerk Page 94 of 420 1 The purpose of the Lakeville Public Safety Foundation is to promote public safety and provide financial assistance to enhance the capabilities of the Lakeville Police and Fire Departments. Date of Grant Application: 4/15/2026 Submit electronically to: info@lpsfmn.org or send a copy to: LPSF P.O. Box 1526 Lakeville, MN 55044 Lakeville Police Department Name of organization 9237 183rd St, Lakeville, MN 55044 Address 952-985-2800 952-985-4899 www.ci.lakeville.mn.us Phone Fax Website Brad Paulson Chief of Police 952-985-4801 bpaulson@lakevillemn.gov Name of Staff Executive Title Phone E-mail Alex Yohnke Police Administrative Specialist 952-985-2801 ayohnke@lakevillemn.gov Name of Contact Person Title Phone E-mail Is your organization an IRS 501(c) (3) not-for-profit? Yes No If no, is your agency a public agency/gov’t? Yes No If no, check with funder for details on using fiscal agents and list name and address of fiscal agent: Name: Bereavement Baskets Fiscal agent’s EIN#:Click here to enter text. Address:9237 183rd St, Lakeville, MN 55044 LPSF Grant Application Page 95 of 420 2 Proposal Information Write an executive summary that describes how this grant will help the Lakeville Public Safety Foundation achieve its mission “to promote public safety by enhancing the capabilities of the Lakeville Police Department and Lakeville Fire Department”. Please include the following: • Brief description of the project • Expected outcomes – Dollar amount requested: $2,500.00 Total annual organization budget: $Click here to enter text. Total project budget: $ Organization Information Provide background on your organization: • State your mission and goals • Summarize your organization’s history • Outline the organization’s current programs and activities • Highlight the recent accomplishments Purpose of Grant Project, program and operating funds requests: • Problem and need. Identify the problem to be addressed and the needs to be met by the project. What unique services would the community be deprived of if you do not undertake this project? • Program/Project Goal. Describe the goals and overall impact of the project or program. • Program/Project. Describe your program objectives relating to this grant application, activities, strategies, time lines and explain how the grant will enable you to address the problem or need. Is this a new or continuing project? • Project timeframe. Over what period of time will the funds be utilized? • Utilization. Number of individuals to benefit from funds. Evaluation Outcomes. Describe the proposed program/project outcomes. What outcomes do you want to produce by the end of the grant period? How do these outcomes support the mission of the LPSF? Measurements. Outline your plan to document progress and results. How will you measure expected outcomes and the effectiveness of your activities? Grant applications will be reviewed within 60 days of receipt. Questions? Please contact Shanen Corlett at info@lpsfmn.org or 612-799-8375 Page 96 of 420 9237 183rd Street West, Lakeville, MN 55044 952-985-2800 • 952-985-4899 fax www.lakevillemn.gov In 2025, the Lakeville Police Department responded to approximately 58 calls where an individual was deceased or died shortly after the initial response. These incidents can range from natural deaths to suicides, vehicle accidents, fires or homicidal violence. After these calls, our chaplain team and our Social Services Liaison follow up with the families to provide resources and support. Whenever possible, the same chaplain who was at the initial call will come along for the follow up to offer a familiar presence. Families are provided with resources such as sympathy cards, county services and therapy. We are always looking for meaningful ways to further support those experiencing loss. Recently, a community member reached out with desire to collaborate on providing tangible care items for grieving families through gift baskets. This led us to connect with Brantley’s Bereavement Baskets. This organization was founded after 14-year-old Brantley McCarty was killed in a motor vehicle accident in 2024. Brantley and his family previously lived in Lakeville and Brantley attended Lakeville schools. The organization has been collaborating with several law enforcement agencies in the south metro to provide grieving families with a thoughtfully assembled basket. The baskets can include hand sewn blankets, neck wraps, journals and a grief resource binder for families either at the initial death call or during follow-up meetings. Providing these baskets would allow us to offer tangible support and encouragement to those experiencing loss in our community. Our request to the Lakeville Public Safety Foundation is to purchase 25 baskets for us to hold and have them available for these situations. We appreciate your consideration and partnership to support our community. Estimated costs: ITEM: BUSINESS: COST: Bereavement Baskets Brantley’s Bereavement Baskets $100/basket TOTAL: $2,500.00 Brantley’s Trail of Kindness: • https://www.brantleystrailofkindness.com/ • https://www.whitefuneralhomes.com/obituary/brantley-mccarty Payment Options: • Check: Brooke MCCarty 3310 310th Street Cannon Falls, MN 55009 • Venmo: Donation can be made to @Dabugs14 Page 97 of 420 1 The purpose of the Lakeville Public Safety Foundation is to promote public safety and provide financial assistance to enhance the capabilities of the Lakeville Police and Fire Departments. Date of Grant Application:7/1/2026 Submit electronically to: info@lpsfmn.org or send a copy to: LPSF P.O. Box 1526 Lakeville, MN 55044 Lakeville Police Department Name of organization 9237 183rd St, Lakeville, MN 55044 Address 952-985-2800 952-985-4899 www.ci.lakeville.mn.us Phone Fax Website Brad Paulson Chief of Police 952-985-4801 bpaulson@lakevillemn.gov Name of Staff Executive Title Phone E-mail Alex Yohnke Police Administrative Specialist 952-985-2801 ayohnke@lakevillemn.gov Name of Contact Person Title Phone E-mail Is your organization an IRS 501(c) (3) not-for-profit? Yes No If no, is your agency a public agency/gov’t? Yes No If no, check with funder for details on using fiscal agents and list name and address of fiscal agent: Name: K-9 Patches Fiscal agent’s EIN#:Click here to enter text. Address:9237 183rd St, Lakeville, MN 55044 LPSF Grant Application Page 98 of 420 2 Proposal Information Write an executive summary that describes how this grant will help the Lakeville Public Safety Foundation achieve its mission “to promote public safety by enhancing the capabilities of the Lakeville Police Department and Lakeville Fire Department”. Please include the following: • Brief description of the project • Expected outcomes – Dollar amount requested: $500.00 Total annual organization budget: $Click here to enter text. Total project budget: $ Organization Information Provide background on your organization: • State your mission and goals • Summarize your organization’s history • Outline the organization’s current programs and activities • Highlight the recent accomplishments Purpose of Grant Project, program and operating funds requests: • Problem and need. Identify the problem to be addressed and the needs to be met by the project. What unique services would the community be deprived of if you do not undertake this project? • Program/Project Goal. Describe the goals and overall impact of the project or program. • Program/Project. Describe your program objectives relating to this grant application, activities, strategies, time lines and explain how the grant will enable you to address the problem or need. Is this a new or continuing project? • Project timeframe. Over what period of time will the funds be utilized? • Utilization. Number of individuals to benefit from funds. Evaluation Outcomes. Describe the proposed program/project outcomes. What outcomes do you want to produce by the end of the grant period? How do these outcomes support the mission of the LPSF? Measurements. Outline your plan to document progress and results. How will you measure expected outcomes and the effectiveness of your activities? Grant applications will be reviewed within 60 days of receipt. Questions? Please contact Shanen Corlett at info@lpsfmn.org or 612-799-8375 Page 99 of 420 9237 183rd Street West, Lakeville, MN 55044 952-985-2800 • 952-985-4899 fax www.lakevillemn.gov The Lakeville Police Departments K-9 Unit is requesting support to expand their community outreach and branding through the creation of custom Lakeville Police Department K-9 Patches. These patches would represent our specialized K-9 unit while providing a recognizable way for community members to identify and support the program. Our goal is to have the production of the patches funded by the Lakeville Public Safety Foundation. The patches would then be sold, with proceeds collected through Venmo and directed back to the Lakeville Public Safety Foundation, which in turn will support the K-9 fund. These funds would help provide equipment, training and other needs from our two K-9 teams. The ask is for the Foundation to purchase 200 patches to start this initiative. There are numerous opportunities where these patches can be sold throughout the year including the Pan-O-Prog K-9 Demo, other local K-9 Demos, the fall K-9 sales at the Lakeville Liquor Stores, at other local LPD events and even potentially online through the Foundation’s website. We are proud of the work that our K-9 teams do each day and want to further promote awareness of the important role they play in serving our community. Since the Lakeville Police Department does not currently sell or distribute our traditional patches to the public, these custom K-9 patches would provide a unique opportunity for community members to support the Lakeville Public Safety Foundation, and in turn the Lakeville Police Department. Other agencies throughout Dakota County have successfully created their own custom K-9 patches, often introducing limited editions as police patch collecting is a popular hobby. We believe this opportunity would be well received in our community and would provide ongoing support for our K-9 Unit. With the K-9 Unit being established and a proud one, we would love to expand our Lakeville Police Department brand and selling these would expand the awareness of this specialized unit and their capabilities. We appreciate your consideration for this grant and are grateful for your support of the Lakeville Police Department and our two K-9 teams. Estimated costs: ITEM: BUSINESS: COST: Custom K-9 Patches ITL Patch – Burnsville $2.45/patch TOTAL: $500.00 Page 100 of 420 Page 101 of 420 Date: 7/20/2026 Resolution Approving Charitable Gambling Rosemount VFW Post 9433 Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution granting approval to the Rosemount VFW Post 9433 to conduct off-site gambling at the Lakeville Arts Center, 20965 Holyoke Avenue. Overview Rosemount VFW Post 9433 has applied to the State of Minnesota Gambling Control Board to conduct off-site gambling (pull-tabs) at Lakeville Arts Center on August 20, 2026. The organization has a gambling premise permit. The application for off-site activity requires a resolution of approval by the City Council. Supporting Information 1. Resolution for Rosemount VFW (Taste of Lakeville) Off Site Gambling Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: A Sense of Community and Belonging Report Completed by: Ann Orlofsky, City Clerk Page 102 of 420 CITY OF LAKEVILLE RESOLUTION NO._________ RESOLUTION APPROVING CHARITABLE GAMBLING ROSEMOUNT VFW POST 9433 WHEREAS, the City of Lakeville received an application from the Rosemount VFW Post 9433 to conduct off-site gambling at the Lakeville Area Arts Center for the Taste of Lakeville; and WHEREAS, Rosemount VFW Post 9433 is a qualified organization. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeville grants approval to the Rosemount VFW Post 9433 to conduct off-site gambling on August 20, 2026, at the Lakeville Area Arts Center, 20965 Holyoke Avenue, for the Taste of Lakeville. DATED this 20th day of July 2026 CITY OF LAKEVILLE: _________________________ John Bermel, Acting Mayor ATTEST: _________________________ Taylor Snider, Deputy City Clerk Page 103 of 420 Date: 7/20/2026 Juniper Triangle Development Agreements Proposed Action Staff recommends adoption of the following motion: Move to approve the Development Contract and related agreements for the plat of Juniper Triangle. Overview The City Council approved the final plat and resolution for Juniper Triangle on July 6, 2026. The approved plat includes a one-lot subdivision and the development of an 81,107 square foot office warehouse building. The site is 10.08 acres in area, located south of Juniper Way (CSAH 70) and at the terminus of Kenrick Court, east of Kenrick Avenue. A stipulation of plat approval requires the developer to sign a development contract and all related development documents pursuant to the approved development contract. The development contract is required to address site improvements and securities to assure the City the work is completed as planned. A stormwater maintenance agreement is required to address the continued maintenance of the on-site private stormwater facilities. Supporting Information 1. Plat-SitePlan-DevAgreement-SMAsigned Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: Heather Botten, Senior Planner Page 104 of 420 JUNIPER TRIANGLEKNOW ALL PERSONS BY THESE PRESENTS: That HUMO LLC, a Minnesota limited liability company, owner of the following described property: That part of the following described property which lies southerly of the southerly right of way line of County State Aid Highway No. 70 as shown on Dakota County Road Right of Way Map No. 300: The West 330.00 feet of the West Half of the Northwest Quarter of the Northeast Quarter (W1/2 of NW 1/4 of NE 1/4), Section Thirty-six (36), Township One Hundred Fourteen (114), Range Twenty-One (21), according to the Government Survey thereof, Dakota County, Minnesota. AND All that part of the Northwest Quarter of the Northeast Quarter of Section 36, Township 114 North, Range 21 West, Dakota County, Minnesota, lying east of the West 330.00 feet thereof; and lying southwesterly of a line drawn parallel with and 85.00 feet southwesterly of, as measured at right angles to, the following described line: Commencing at a point on the north line of the Northwest Quarter of said Section 3, distant 467.2 feet west of the northeast corner of said Northwest Quarter; thence South 51 degrees 24 minutes 30 seconds East (assuming the north line of said Northwest Quarter bears East-West) for a distance of approximately 1014.2 feet to the actual point of beginning; thence continuing South 51 degrees 24 minutes 30 seconds East for approximately 1163.0 feet to a point on the south line of said Northwest Quarter of the Northeast Quarter of Section 36, distant 134.95 feet west of the southeast corner thereof and there terminating. Has caused the same to be surveyed and platted as JUNIPER TRIANGLE and does hereby dedicate to the public for public use the public ways and the drainage and utility easements as created on this plat. In witness whereof said HUMO LLC, a Minnesota limited liability company, has caused these presents to be signed by its proper officer this day of , 20 . HUMO LLC By: Muzaffar Gafurov, Managing Member STATE OF COUNTY OF This instrument was acknowledged before me on day of , 20 , by Muzaffar Gafurov, the Managing Member of HUMO LLC, a Minnesota limited liability company, on behalf of the company. Notary Public, County, (Notary Signature) My commission expires (Notary Printed Name) I Marcus F. Hampton do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the date of this certificate are shown and labeled on this plat; and all public ways are shown and labeled on this plat. Dated this day of , 20 ______________________________________________________________ Marcus F. Hampton, Licensed Land Surveyor, Minnesota License No. 47481 STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me on this day of , 20 , by Marcus F. Hampton, Licensed Land Surveyor, Minnesota License No. 47481. Notary Public, County, Minnesota (Notary Signature) My commission expires January 31, (Notary Printed Name) CITY COUNCIL, CITY OF LAKEVILLE, MINNESOTA This plat of JUNIPER TRIANGLE was approved and accepted by the City Council of the City of Lakville, Minnesota at a regular meeting thereof held this day of , 20 , and said plat is in compliance with the provisions of Minnesota Statutes, Section 505.03, Subd. 2. By: Mayor Clerk DAKOTA COUNTY SURVEYOR, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approved this day of , 20 . By: Todd B. Tollefson, Dakota County Surveyor COUNTY BOARD, COUNTY OF DAKOTA, STATE OF MINNESOTA We do hereby certify that on the 5th day of May, 2026, the Board of Commissioners of Dakota County, Minnesota, approved this plat of JUNIPER TRIANGLE and said plat is in compliance with the provisions of Minnesota Statutes, Section 505.03, Subd. 2, and pursuant to the Dakota County Contiguous Plat Ordinance. By: __________________________________ Attest: ___________________________________ Chair, Dakota County Board Dakota County Treasurer - Auditor DEPARTMENT OF PROPERTY TAXATION AND RECORDS, COUNTY OF DAKOTA, STATE OF MINNESOTA Pursuant to Minnesota Statutes, Section 505.021, Subd. 9, taxes payable in the year 20 on the land hereinbefore described have been paid. Also pursuant to Minnesota Statutes, Section 272.12, there are no delinquent taxes and transfer entered this day of , 20 . By: Amy A. Koethe, Director, Department Of Property Taxation and Records COUNTY RECORDER, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that this plat of JUNIPER TRIANGLE was filed in the office of the County Recorder for public record on this day of , 20 , at o'clock . M. and was duly filed in Book of Plats, Page , as Document Number . Amy A. Koethe, County Recorder BEARINGS ARE BASED ON THE WEST LINE OF THE NW 1/4 OF THE NE 1/4 OF SEC. 36, T. 114, R. 21 WHICH IS ASSUMED TO HAVE A BEARING OF N 00°13'54" W VICINITY MAP DENOTES FOUND OPEN 1/2 INCH IRON MONUMENT UNLESS OTHERWISE NOTED DENOTES SET 1/2 INCH BY 14 INCH IRON MONUMENT WITH CAP MARKED L.S. NO. 47481 TO BE SET IN ACCORDANCE WITH MN STATE SATUTE 505.021, SUBD. 10. DENOTES FOUND HENNEPIN COUNTY CAST IRON MONUMENTBEING 5 FEET IN WIDTH AND ADJOINING SIDE LOT LINES, AND BEING 10 FEET IN WIDTH AND ADJOINING PUBLIC WAYS AND REAR LOT LINES, UNLESS OTHERWISE INDICATED ON THIS PLAT. DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS: SCALE IN FEET 0 100 200 DENOTES BEARING/ DISTANCE FORM DESCRIPTION DENOTES MEASURED BEARING/ DISTANCE DENOTES RESTRICTED ACCESS TO DAKOTA COUNTY PER THE DAKOTA COUNTY CONTIGUOUS PLAT ORDINANCE Page 105 of 420 NO P A R K I N G NO P A R K I N G BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL BSL PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L PS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L BS L PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL PSL BSL BS L B S L B S L BS L PS L P S L PS L 12' PROPOSED INFILTRATION BASIN 20 D 9' B 20 D 18 0 ' PROPOSED BUILDING 81,107 SF FFE=1060.00 38 TRUCK DOCKS OFFICE AREA 8,111 SF B 18 30 0 ' A 12' BOC 20' BOC 14' 18' 8' B O C 18' 9' 9' 30' 24' 60' PROPOSED RIGHT TURN LANE R 2 0 ' PROPOSED GATE R25' R5' 36' A 20 18' KENR I C K C T 12 10' J U N I P E R W A Y ( C O U N T Y R O A D 7 0 ) 9' 60' R2 5 ' 16 T R U C K S P A C E S 27 T R U C K S P A C E S 10 ' BO C 18 T R U C K S P A C E S R30' 20 ' BO C R 3 0 ' 120 ' E 30 ' E 18' 200' 200' PROPOSED FOREBAY 9' G F F R 1 0 0 ' PROPOSED CUL-DE-SAC I I H H H H H H H H J J 10' 2' K K10'2' 1 5 ' 18' 24' 24' R5' R 5 0 ' R5' 28.3' 10' R 5 ' R10' 120 ' R45' R45' BOC 38 . 7 ' 44.7' 43.5' R10' R 5 0 ' R5' R 5 ' G L LL L L L L L L R 3 0 ' R5' H R5 0 0 ' R5 0 0 ' I PROJECT NO. 24360 CAD FILE 4/20/2026 DATE REVISIONS DRAWN BY Da t e : Re g . N o . BR A D Y B U S S E L M A N 44 5 7 9 1/ 1 6 / 2 0 2 6 2026-02-13 CITY COMMENTS 29 9 9 W E S T C . R . 4 2 , S U I T E 1 0 0 BU R N S V I L L E , M N 5 5 3 0 6 PH O N E : 9 5 2 - 8 9 0 - 6 0 4 4 bb u s s e l m a n @m n h i l l . c o m ww w . m n h i l l . c o m I h e r e b y c e r t i f y t h a t t h i s p l a n , sp e c i f i c a t i o n o r r e p o r t w a s p r e p a r e d by m e o r u n d e r m y d i r e c t s u p e r v i s i o n an d t h a t I a m a d u l y L i c e n s e d Pr o f e s s i o n a l E n g i n e e r u n d e r t h e l a w s of t h e S t a t e o f M i n n e s o t a . LA K E V I L L E , M I N N E S O T A GL O B U S B U S I N E S S P A R K GL O B U S T R A N S P O R T I N C . FO R 22 0 0 0 H U M B O L D T R O A D , S U I T E 2 0 0 L A K E V I L L E , M N 5 5 0 4 4 2026-02-24 CITY COMMENTS 2026-03-02 CITY COMMENTS 2026-03-04 TREE INVENTORY 2026-03-24 CITY COMMENTS 2026-03-24 CITY COMMENTS 2026-04-20 PERMIT PLAN 2026-04-22 WIDEN BIT. TRAIL 2026-04-30 TREES/GRADING LIMITS F: \ _ C i v i l 3 D P r o j e c t s \ 2 4 3 6 0 \ P R E - P L A T P L A N S \ 2 4 3 6 0 S I T E . d w g - 4 / 3 0 / 2 0 2 6 1 1 : 2 4 A M 24360SITE C600 JSO Know what's below. before you dig.Call R SCALE IN FEET 0 50 100 SI T E P L A N LEGEND EXISTING CURB & GUTTER EXISTING ASPHALT EXISTING CONCRETE PROPOSED CONCRETE PROPOSED INFILTRATION BASIN PROPOSED CURB & GUTTER DEVELOPMENT SUMMARY GROSS PROPERTY AREA 13.74 ACRES/ 598,583 SF PROJECT AREA 10.08 ACRES/ 439,044 SF EXISTING ZONING OP, OFFICE PARK PROPOSED ZONING OP, OFFICE PARK BUILDING GROSS FLOOR AREA 81,107 SF WAREHOUSE FLOOR AREA 72,996 SF OFFICE FLOOR AREA 8,111 SF CODE MAXIMUM HEIGHT SIX STORIES OR 65 FEET PARKING PARKING STALLS REQUIRED: WAREHOUSE:1 SPACE PER 1,000 SF OFFICES:3 SPACE PER 1,000 SF PROPOSED PARKING REQUIRED WAREHOUSE (FLOOR AREA MINUS 10%)65,696 SF AT 1 PER 1,000 = 66 STALLS OFFICE (FLOOR AREA MINUS 10%)7,300 SF AT 3 PER 1,000 = 22 STALLS TOTAL REQUIRED 88 STALLS PARKING STALLS PROVIDED PROPOSED STALLS 78 STALLS PROOF OF PARKING 12 STALLS TOTAL AVAILABLE PARKING 90 STALLS GREEN SPACE GREEN SPACE REQUIRED (30%)3.02 ACRES / 131,713 SF GREEN SPACE PROPOSED (30.2%)3.05 ACRES / 132,685 SF OUTDOOR STORAGE MAXIMUM ALLOWED (20%)2.02 ACRES / 87,809 SF PROPOSED AS SHOWN ON PLAN* (10.7%)1.08 ACRES / 46,845 SF TRUCK SPACES PROVIDED 61 SPACES *ACTUAL OUTDOOR STORAGE WILL VARY BUT SHALL NOT EXCEED 20% SETBACKS BUILDING SETBACK (RIGHT-OF-WAY)50 FEET BUILDING SETBACK (SIDE/REAR)10 FEET PARKING SETBACK (RIGHT-OF-WAY)20 FEET PARKING SETBACK (SIDE/REAR)5 FEET KEY NOTES EXISTING SITE ACCESSA 10' WIDE CONCRETE PAD FOR SEMI-TRAILERSB CONNECT TO EXISTING STREETC 20 NUMBER OF PARKING SPACES PER ROW CONCRETE DRIVEWAY APROND PARKING SETBACK LINEPSLPSLPSL BUILDING SETBACK LINEBSLBSLBSL OUTDOOR STORAGE AREAE PROOF OF PARKING AREASF RETRAINING WALLG PROPOSED SEDIMENT BASIN PROPOSED ASPHALT SURFACE B612 CONCRETE CURB AND GUTTERH B618 CONCRETE CURB AND GUTTERI CONCRETE PEDESTRIAN RAMPJ 10' WIDE BITUMINOUS TRAILK LIGHT POLEL OUTDOOR STORAGE AREA PROPOSED LIGHT POLE Page 106 of 420 Page 107 of 420 Page 108 of 420 Page 109 of 420 Page 110 of 420 Page 111 of 420 Page 112 of 420 Page 113 of 420 Page 114 of 420 Page 115 of 420 Page 116 of 420 Page 117 of 420 Page 118 of 420 Page 119 of 420 Page 120 of 420 Page 121 of 420 Page 122 of 420 Page 123 of 420 Page 124 of 420 Page 125 of 420 Page 126 of 420 Page 127 of 420 (SEAL) STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) CITY OF LAKEVILLE BY: ------------------John Bermel, Acting Mayor AN D _________________ _ Taylor Snider, Deputy Clerk The foregoing instrument was acknowledged before me this ___ day of ______ , 2026, by John Bermel and by Taylor Snider the Acting Mayor and Deputy Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. NOTARY PUBLIC 22 239568v9 Juniper Triangle Page 128 of 420 Page 129 of 420 Page 130 of 420 Page 131 of 420 Page 132 of 420 Page 133 of 420 Page 134 of 420 (SEAL) STATEOFMINNESOTA ) )ss. COUNTY OF DAKOTA ) CITY OF LAKEVILLE By:. _____________ _ John Bermel, Acting Mayor And: --------------Taylor Snider, Deputy Clerk The foregoing instrument was acknowledged before me this ____ day of ______ , 2026, by John Bermel nd by Taylor Snider the ActingMayor and DeputyClerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP/smt 239590vl Notary Public 5 Page 135 of 420 Page 136 of 420 Page 137 of 420 Page 138 of 420 Page 139 of 420 Page 140 of 420 Date: 7/20/2026 Lakeville 35 Logistics Center South Addition Final Plat Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution approving the plat of Lakeville 35 Logistics Center South Addition. Overview Likewise Partners has submitted an application for a final plat for a one lot, one outlot subdivision to be known as Lakeville 35 Logistics Center South Addition. The site is 15.36 acres in area and located south of Juniper Way (CSAH 70) and north of 215th Street. The site is zoned OP, Office Park District. The applicant is proposing an industrial office/warehouse project with an approximate 171,000 square foot building. A conditional use permit is required and was approved with the preliminary plat to allow an office/warehouse building in the OP, Office Park District. The final plat is consistent with the preliminary plat and complies with the Subdivision Ordinance requirements. Final plat approval is subject to the execution of a Development Contract, special assessment agreement, and related development agreements for the site. The Developer is working with City staff on the details of the agreements. Once finalized, the agreements will be brought forward to City Council for review and approval. Supporting Information 1. Plat Resolution 2. Planning and Engineering Reports 3. Exhibits Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: Heather Botten, Senior Planner Page 141 of 420 (Reserved for Dakota County Recording Information) CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 26-_____ RESOLUTION APPROVING THE FINAL PLAT OF LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDIITON WHEREAS, the owner of the plat described as Lakeville 35 Logistics Center South Addition has requested final plat approval; and WHEREAS, the preliminary plat was reviewed by the Planning Commission and approved by the City Council; and WHEREAS, the final plat is consistent with the preliminary plat approved by the City Council; and WHEREAS, the final plat meets Subdivision Ordinance requirements; and WHEREAS, the final plat is acceptable to the City. NOW, THEREFORE, BE IT RESOLVED by the Lakeville City Council: 1. The Lakeville 35 Logistics Center South Addition final plat is hereby approved subject to Developer executing a Development Contract for the plat, special assessment agreement and any other agreements related thereto and recording the agreements simultaneously with the plat. 2. The Mayor and City Clerk are hereby authorized to sign the final plat mylars, development contract, stormwater maintenance agreement, and all documents pursuant to the approved development contract. 3. The Lakeville 35 Logistics Center South Addition final plat is subject to the Developer executing a special assessment agreement with the City. 4. The City Clerk is directed to file a certified copy of this resolution with the Dakota County Recorder. Page 142 of 420 ADOPTED by the Lakeville City Council this 20th day of July 2026. CITY OF LAKEVILLE BY: _______________________ John Bermel, Acting Mayor ATTEST: ________________________ Taylor Snider, Deputy Clerk STATE OF MINNESOTA ) ( CITY OF LAKEVILLE ) I hereby certify that the foregoing Resolution No. 26-____ is a true and correct copy of the resolution presented to and adopted by the City Council of the City of Lakeville at a duly authorized meeting thereof held on the 20th day of July 2026 as shown by the minutes of said meeting in my possession. ________________________ Taylor Snider, Deputy Clerk (SEAL) Page 143 of 420 1 City of Lakeville Community Development Memorandum To: Tina Goodroad, AICP, Community Development Director From: Heather Botten, Senior Planner Date: July 6, 2026 Subject: Lakeville 35 Logistics Center South Addition Final Plat Application Action Deadline: July 21, 2026 (60-day deadline) BACKGROUND Representatives of Likewise Partners have submitted a final plat for a one lot, one outlot industrial subdivision to be known as Lakeville 35 Logistics Center South Addition. The site is 15.36 acres in area and located south of Juniper Way (CSAH 70) and north of 215th Street. The applicant is proposing a multi-tenant industrial office/warehouse project with an approximate 171,000 square foot building. The property is zoned O-P, Office Park District. A conditional use permit for an office/warehouse use was approved April 6, 2026. The final plat plans have been reviewed by Community Development, Engineering, Environmental Resources, Forestry, and Parks and Recreation Department. EXHIBITS: A. Location Map B. Zoning Map C. Final Plat D. Preliminary Plat E. Site Plan F. Dakota County Plat Commission letter dated June 18, 2026 Page 144 of 420 2 SITE P LAN ANALYSIS The site development and construction plans propose one building, approximately 171,000 square feet to include both office and warehouse type uses. The building is being constructed on speculation, the site plan estimates 10% office/90% warehouse occupancy, consistent with similar industrial office/warehouse buildings. Existing Conditions. The property is undeveloped land and historically been used for agricultural crop production. There is a wetland on the southeasterly part of the property. Lots/Blocks. One lot on one block is proposed with the final plat along with one outlot that will be deeded to the city. Proposed Lot 1 is 13.66 acres in area with over 1,300 ft of lot width exceeding the minimum lot area (30,000 square feet) and lot width (100 feet) requirements of the OP District. Streets. Juniper Way (CSAH 70) abuts the proposed plat to the north. All required right-of-way has been previously dedicated for Juniper Way. Access to and from the property will be from 215th Street, that currently has a full access point onto CSAH 70. 215th Street is currently an unpaved road that runs along the southern portion of the plat that will provide two access points to the development. This road is planned for reconstruction, consistent with the City’s urban collector roadway design standards. The project is explained in more detail in the Engineering Memo dated July 6, 2026. The Dakota County Plat Commission recommended approval of the final plat at the June 17, 2026 meeting subject to the requirements in the approval letter dated June 18, 2026. Tree Preservation. As an industrial district, the tree removal threshold is 70%. The Tree Preservation Plan identifies 2,104 inches of significant trees. The plans propose to remove 202 diameter inches which is below the threshold. A total of 1,902 diameter inches of significant trees are identified to be preserved. All trees identified for preservation shall be protected with appropriate tree protection fencing and measures installed prior to, and maintained throughout, construction. Any preserved trees that are damaged or removed during construction will require replacement in accordance with the Tree Preservation Ordinance. Wetlands. One wetland was identified on the site. No impacts are proposed to the wetland. Grading, Drainage, Erosion Control, Utilities. Grading, drainage, erosion control, and utility plans have been submitted with the preliminary plat and are discussed in more detail in the attached July 6, 2026 engineering report. The Engineering Division recommends approval of Lakeville 35 Logistics Center South Addition final plat and development plans subject to the comments outlined in the engineering report. Page 145 of 420 3 Park Dedication, Trails and Sidewalks. The City’s Comprehensive Parks, Trails, and Open Space Plan does not identify any future park land needs in the area of the plat. Park dedication shall be satisfied with a cash fee at a rate of $5,783 per acre. Development of the site includes the grading and restoration of public trails. A bituminous trail will be constructed along the south side of Juniper Way (10-feet wide) with a future city and county capital improvement project. The Developer shall be responsible for 100% of the grading and restoration for the trail segment along the plats frontage. Building Setbacks. The O-P, Office-Park District requires the following setback requirements: Front Yard (215th St) W. Side Yard Rear Yard (CSAH 70) Minimum 50 feet 10 feet 30 feet Proposed 52 feet 50+ feet 50+ feet Building Height/Exterior Materials. The proposed building will be one-story and 39 feet in height in compliance with O-P District requirements. The building will be constructed with 96% or greater Grade A materials, consisting of smooth texture pre-cast concrete panels painted white and gray with blue accents. The loading docks will be located on the east side of the building. The exterior building materials and design comply with Zoning Ordinance requirements for the OP District. The proposed building is compatible with the area in which it is proposed and consistent in design to other warehouse/office buildings in the OR District, as allowed by the Zoning Ordinance. Access/Parking/Drive Aisles. The property will have two access points via 215th Street on the south side of the site. The egress points have been approved by Engineering. The parking lot meets or exceeds the minimum setbacks from a property line. The site plan demonstrates two areas of proof of parking to accommodate the expansion of parking facilities if the parking demand exceeds the site supply. Building size ………………………….. 170,978 SF Minus 10% of floor area allowed by code..153,880 SF Office area - est. 10% of floor area - 15,388 SF 3 spaces per 1,000 SF = 46 stalls Warehouse square feet - est. 90% = 138,492 SF 1 space per 1,000 SF = 138 stalls Page 146 of 420 4 Required (assuming 10% office occupancy)....184 stalls Provided……………………………………....184 stalls Circulation. All drive aisles and parking stalls comply with the required aisle width and parking stall dimensions for two-way 90-degree vehicle parking. The site has been designed to allow semi- truck and trailer and emergency vehicle circulation throughout the site. Employee and visitor would be on the west and north sides of the building with semi-traffic and semi-trailer parking using the easterly egress and the loading dock area. Outdoor Storage. Outside storage will be limited to semi-trailers as part of the function of the building occupancy that includes receiving, transferring, shipping of goods and materials. The trailer parking will be located at the rear of the building. Landscaping/Screening. The O-P District requires a minimum of 30% landscaped area on the property. Subtracting right-of-way dedication, the lot size is 14.88 acres. The site layout as designed proposes 46.6% greenspace, exceeding minimum requirements. The landscape plan proposes 59 shade and evergreen trees and a variety of shrubs and perennials. Zoning Ordinance 11-21-9.B requires industrial and commercial properties to include perimeter plantings, including along the right-of-way of the proposed preliminary plat. All of the landscaped areas within and adjacent to the parking lot, including landscaped islands, shall be irrigated in compliance with the Zoning Ordinance. A financial security will be required with the final plat to guarantee installation of the approved landscaping. The security amount will be determined by the developer’s landscaping contractor prior to City Council consideration of the final plat. Signage. The Zoning Ordinance for the OP District allows one freestanding sign to a maximum area of 100 square feet and 10 feet in height. The sign shall be located at least 15 from the property line abutting right-of-way and five feet from a side property line. All wall signs shall comply with Chapter 11-23 of the City Code. A sign permit shall be issued by the Community Development Department prior to the installation of any signs. Recycling and Trash Containers. If trash will be kept outdoors in an enclosure, the structure must meet the requirements of Section 11-18-11, including exterior materials, location, and screening. All outdoor trash enclosures must be screened with a structure that is a minimum of six feet in height or one foot taller than the containers and must be constructed of materials that match the architecture of the principal building. Mechanical Equipment. All rooftop and ground mounted mechanical equipment shall comply with Section 11-21-13 of city code. Screening materials must be aesthetically harmonious and compatible with the building. Page 147 of 420 5 Snow Storage. Snow storage may not take place in required parking spaces. Snow removal is shown to be stored near the southeast side of the building, out of the required parking areas. RECOMMENDATION Community Development Department staff has determined that Lakeville 35 Logistics Center South Addition final plat and development plans comply with Subdivision and Zoning Ordinance requirements for the O-P district. Staff recommends approval of the plat subject to the following stipulations: 1. The final plat and development plans shall be in substantial conformance with the plans on file with the Community Development Department except as may be modified by the conditions herein. 2. A development contract and any related agreements shall be approved by the City Council with the approval of the final plat. 3. Implementation of the requirements listed in the engineering report dated July 6, 2026 and any subsequent correspondence. 4. The landscape and tree preservation plans shall be approved by the City Forester. A landscaping financial security shall be submitted with the final plat. 5. Snow storage shall not take place in required parking spaces. If there is not adequate space to store snow on site, snow must be removed from the site. Page 148 of 420 City of Lakeville Public Works – Engineering Division Memorandum To: Heather Botten, Senior Planner From: Jonathan Nelson, Assistant City Engineer McKenzie Cafferty, Environmental Resources Manager Joe Masiarchin, Parks and Recreation Director Copy: Zach Johnson, City Engineer Julie Stahl, Finance Director Dave Mathews, Building Official Tina Goodroad, Community Development Director Date: July 6, 2026 Subject: Lakeville 35 Logistics Center South • Final Plat • Grading and Erosion Control Plan • Utility Plan • Tree Preservation Plan BBAACCKKGGRROOUU NN DD LPDC, LLC submitted a final plat named Lakeville 35 Logistics Center South. The proposed development is located east of Interstate 35, north of and adjacent to 215th Street and south of and adjacent to Juniper Way (CSAH 70). The parent parcel consists of Outlot A, Lakeville 35 Logistics North Addition and is zoned OP, Office Park District. The final plat consists of one lot within one block and one outlot on 15.08 acres. The Developer is dedicating 0.48 acres for 215th Street right-of-way. The outlot created with the final plat shall have the following use: Outlot A: Wetland management area; to be deeded to the City (1.22 acres) The development will be completed by: Page 149 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 22 OOFF 88 Developer: LPDC, LLC Engineer/Surveyor: Sambatek SSIITTEE CCOONNDDIITTIIOO NN SS The Lakeville 35 Logistics Center South site contains undeveloped agricultural land. All existing remnants from the site, including field entrances and culverts, shall be removed with the final plat. The Developer must provide a $10,000 security with the final plat to ensure the removal of existing field entrances and culverts. There is an overhead transmission line on the south side of the platted area that is considered high voltage. EEAASSEEMMEENNTTSS Perimeter drainage and utility easements shall be provided with the final plat in accordance with city ordinance requirements. The Developer shall provide the city temporary construction easements of 14’ along the southern plat boundary necessary for the grading and construction of City Project No. 26-09 215th Street improvements prior to City Council consideration of the final plat. SSTTRREEEETT AANNDD SSUUBBDDIIVVIISSIIOONN LLAAYYOOUUTT Juniper Way (CSAH 70) Lakeville 35 Logistics Center South is south of and adjacent to Juniper Way, a Dakota County highway classified as a principal arterial as identified in the City’s Transportation Plan. Juniper Way is an existing four-lane divided rural highway. The 2022 Dakota County Plat Needs Map (rev. 10-27-22) identifies a half right-of-way need of 75 feet. The necessary right-of-way was previously dedicated with Lakeville 35 Logistics Center North final plat. The Dakota County Plat Commission recommended approval of the final plat on June 17, 2026. The Developer is responsible for any requirements stipulated by Dakota County. 215th Street Lakeville 35 Logistics Center South is located north of and adjacent to 215th Street, a City roadway classified as a minor collector. The necessary right-of-way was previously dedicated with Lakeville 35 Logistics Center North final plat. 215th Street is a two-lane undivided rural gravel roadway. 215th Street is planned for reconstruction consistent with City urban collector roadway design standards. The improvements are programmed in Lakeville’s current adopted 5-year Capital Improvement Plan (2026-2030). SSPPEECCIIAALL AASSSSEESSSSMMEENNTT AAGGRREEEEMMEENN TT The Developer shall enter into a public improvement and special assessment agreement with the City to be recorded against Lot 1, Block 1, of the plat prior to recording the final plat, for Page 150 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 33 OOFF 88 the costs associated with City Project No. 26-09 (215th Street Improvements) for the portion of 215th Street abutting the plat. The assessment agreement shall be recorded simultaneously with the Development Contract. By entering into the assessment agreement, the Developer waives the right to appeal the assessment. Entering into the assessment agreement releases the Developer and owner from their obligation to construct the public improvements associated with City Project 26-09. Any violation of the terms and conditions of the assessment agreement shall also constitute a breach of this Contract. CCOONNSSTTRRUUCCTTIIOONN AACCCCEESSSS Construction traffic access and egress for grading, utility and street construction shall be determined with the final construction plans. PPAARRKKSS,, TTRRAAIILLSS AANNDD SSIIDD EEWWAALLKKSS Development includes the grading and restoration of public trails. Bituminous trails will be constructed along the south side of Juniper Way (10-feet wide) with a future city and county capital improvement project. The Developer will be responsible for 100% of the grading and restoration for the trail segment along the plats frontage. The Park Dedication requirement has not been collected on the parent parcel and will be satisfied through a cash contribution to be paid with the final plat, calculated as follows: 15.08 acres x $5,783.00 = $87,207.64 Total Acreage Lakeville 35 Logistics South 2026 Unit Rate (Industrial) Park Dedication Fee Lakeville 35 Logistics South UUTTIILLIITTIIEESS SSAANNIITTAARRYY SSEEWWEERR Lakeville 35 Logistics Center South is located within subdistricts SC-10500 and SC-10510 of the South Creek sanitary sewer district. Wastewater will be conveyed through City sanitary sewer to the MCES interceptor sewer monitored by meter M649. Wastewater treatment is provided by the Empire Wastewater Treatment Plant. Development of Lakeville 35 Logistics Center South includes construction of private sanitary sewer. Sanitary sewer service will extend within Lot 1 from an existing stub. The Lateral Sanitary Sewer Charge must be paid for the 8-inch sanitary sewer along 215th Street that was installed with City Project 20-05. The Lateral Sanitary Sewer Charge for the sanitary sewer adjacent to the site must be paid with the final plat, calculated as follows: Page 151 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 44 OOFF 88 1,384.69 ft. x $41.50/f.f. + $418.00 = $57,882.64 Front Footage Lakeville 35 Logistics South Non-Residential Charge Per Front Foot Per Service Lateral Sanitary Sewer Charge Lakeville 35 Logistics South The Sanitary Sewer Availability Charge has not been collected on the parent parcel and shall be collected with the building permit. Final locations and sizes of sanitary sewer facilities will be reviewed by City staff with the final plat, building permit application and final construction plans WWAATTEERRMMAAIINN Development of Lakeville 35 Logistics Center South includes construction of private watermain service. Watermain will extend within Lot 1 from a future stub to be constructed with City Project No. 26-09 215th Street Improvements. The Lateral Watermain Charge must be paid for the 12-inch watermain along 215th Street that was installed with City Project 20-05. The Lateral Watermain Access Charge for the watermain adjacent to the site must be paid with the final plat, calculated as follows: 1,384.69 ft. x $48.00/f.f. + $408.00 = $66,873.12 Front Footage Lakeville 35 Logistics South Non-Residential Charge Per Front Foot Per Service Lateral Watermain Charge Lakeville 35 Logistics South Final locations and sizes of watermain facilities will be reviewed by City staff with the final plat, building permit application and final construction plans SSTTOORRMM SSEEWWEERR Development includes construction of privately owned and maintained storm sewer systems. Storm sewer will be constructed within Lot 1 to collect and convey stormwater runoff generated from within the site to a private stormwater management facility. The Storm Sewer Charge has not been collected on the parent parcel and must be paid with the final plat, calculated as follows: 668,851.00 s.f. x $0.250/s.f. = $167,212.75 Net Area Lakeville 35 Logistics South 2026 Unit Rate (Commercial and Industrial) Storm Sewer Charge Lakeville 35 Logstics South Draintile construction is required in areas of non-granular soils within the development for the street sub-cuts and lots. Any additional draintile construction, including perimeter draintile required for building footings, which is deemed necessary during construction shall be the Developer’s responsibility to install and finance. Page 152 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 55 OOFF 88 Final locations and sizes of all storm sewer facilities will be reviewed by City staff with the building permit application and final construction plans. OOVVEERRHHEEAADD LLIINNEESS Existing aboveground equipment (utility lines and poles) is located along the south plat boundary, adjacent to the parent parcel. The overhead lines are identified as high voltage lines that cannot be undergrounded by the utility provider. DDRRAAIINNAAGGEE AANNDD GGRRAADDIINN GG The development is located within subdistricts SC-004 and SC-005 of the South Creek stormwater district. Development includes construction of a privately-owned and maintained stormwater management system. A stormwater management basin will be located in Lot 1 and provide treatment and rate control of stormwater runoff generated from the site. The Developer shall enter into a Stormwater Maintenance Agreement with the City for the private stormwater management system. The final grading plan shall identify all fill lots in which the building footings will be placed on fill material. The grading specifications shall also indicate that all embankments meet FHA/HUD 79G specifications. The Developer shall certify to the City that all lots with footings placed on fill material are appropriately constructed. Building permits will not be issued until a soils report and an as-built certified grading plan have been submitted and approved by City staff. The development contains more than one acre of site disturbance. A National Pollution Discharge Elimination System General Stormwater Permit for construction activity is required from the Minnesota Pollution Control Agency for areas exceeding one acre being disturbed by grading. A copy of the Notice of Stormwater Permit Coverage must be submitted to the City upon receipt from the MPCA. FFEEMMAA FFLLOOOODDPPLLAAIINN AANN AALLYYSSIISS The development is shown on the Flood Insurance Rate Map (Map No. 27037C0191E; Eff. Date 12/2/2011) as Zone X by the Federal Emergency Management Agency (FEMA). Based on this designation by FEMA, the lots are not located within a Special Flood Hazard Area (SFHA), as determined by FEMA. Page 153 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 66 OOFF 88 EERROOSSIIOONN CCOONNTTRROOLL The Developer is responsible for obtaining an MPCA Construction Permit for the site. No grading or tree removals can take place until authorized by the City. Changes made throughout construction must be documented in the SWPPP. Redundant silt fence is required along all wetlands. Additional erosion control measures may be required during construction as deemed necessary by City staff. Any additional measures required shall be installed and maintained by the Developer. A maintenance schedule for the establishment of vegetation in the stormwater management basin must be submitted to the City for review prior to the start of grading. The MS4 Administration Fee has not been collected on the parent parcel and shall be paid with the final plat, calculated as follows: $289,670.00 x 2.0% = $5,793.40 Grading Cost Lakeville 35 Logistics South 2026 Rate MS4 Administration Fee Lakeville 35 Logistics South WWEETTLLAANNDDSS One wetland was delineated on the site. No impacts are proposed to the wetland. The wetland will be placed in a city owned outlot. Natural areas signs will be placed around the wetland buffer in seven locations. Final locations for the signs will be reviewed by city staff prior to installation. TTRREEEE PPRREESSEERRVVAATTIIOONN The Tree Preservation Plan submitted with the Lakeville Logistics 35 South preliminary plat identifies 2,104 inches of significant trees located with the project boundaries. As a Mixed Use, Commercial, Industrial, or Special District, the tree removal threshold is 70%, or 1,472 inches. Plans propose to remove 106 diameter inches on site, and 96 diameter inches off site, for a total proposed removal of 202 diameter inches which is below the threshold. A total of 1,902 diameter inches of significant trees are identified to be preserved. All trees identified for preservation shall be protected with appropriate tree protection fencing and measures installed prior to, and maintained throughout, construction. Any preserved trees that are damaged or removed during construction will require replacement in accordance with the Tree Preservation Ordinance. SECURITIES Page 154 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 77 OOFF 88 The Developer shall provide a Letter of Credit as security for the Developer-installed improvements relating to the development. Construction costs are based upon estimates submitted by the Developer’s engineer on May 20, 2026. CONSTRUCTION COSTS Sanitary Sewer Connection $ 5,000.00 Watermain Connection 15,000.00 Storm Sewer Connection 5,000.00 Grading, Grading Certification, Erosion Control and Restoration 289,670.00 SUBTOTAL - CONSTRUCTION COSTS $314,670.00 OTHER COSTS Developer’s Design (3.0%) $ 9,440.10 Developer’s Construction Survey (2.5%) 7,866.75 City’s Legal Expense (0.5%) 1,573.35 City Construction Observation (5.0%) 15,733.50 Developer’s Record Drawing (0.5%) 1,573.35 Natural Area Signs (7) 1,050.00 Landscaping Streetlights 92,779.00 2,800.00 Lot Corners/Iron Monuments 200.00 SUBTOTAL - OTHER COSTS $ 133,016.05 TOTAL PROJECT SECURITY $ 447,686.05 The street light security totals $2,800 which consists of two (2) mast-arm streetlight at $2,800 each. The Developer shall post a security to ensure the final placement of iron monuments at property corners with the final plat. The security is $100.00 per lot and outlot for a total of $200.00. The City shall hold this security until the Developer’s Land Surveyor certifies that all irons have been placed following site grading, street, and utility construction. CASH FEES A cash fee for one-year of streetlight operating expenses shall be paid at the time of final plat approval and is calculated as follows: 1,384.69 ft. x $0.2974/front foot/qtr x 4 qtrs/yr = $1,674.23 Front Footage Lakeville 35 Logistics South 2026 Streetlight Operating Fee Total Lakeville 35 Logistics South Page 155 of 420 LLAAKKEEVVIILLLLEE 3355 LLOOGGIISSTTIICCSS CCEENNTTEERR SSOOUUTTHH –– FFIINNAALL PPLLAATT JJUULLYY 66,, 22002266 PPAAGGEE 88 OOFF 88 A cash fee for one-year of environmental resources management expenses shall be paid with the final plat and is calculated as follows: 1 unit x $64.00/unit x 4.20 = $268.80 Total Units Lakeville 35 Logistics South 2026 Rate Utility Factor Environmental Resources Fee Lakeville 35 Logistics South A cash fee for the preparation of addressing, property data, and City base map updating shall be paid with the final plat and is calculated as follows: 2 lots/outlots x $90.00/unit = $180.00 Lots/Outlots Lakeville 35 Logistics South 2026 Rate Property Data & Asset/Infrastructure Mgmt. Fee Lakeville 35 Logistics South The Developer shall submit the final plat and construction drawings in an electronic format. The electronic format shall be in .pdf and either .dwg (AutoCAD) or .dxf format. The Developer shall also pay a cash fee for City Engineering Administration. The fee for City Engineering Administration will be based on three percent (3.00%) of the estimated construction cost, or $9,440.10. CASH REQUIREMENTS Park Dedication $ 87,207.64 Storm Sewer Charge Lateral Sanitary Sewer Charge Lateral Watermain Charge Streetlight Operating Fee 167,212.75 57,882.64 66,873.12 1,674.23 Environmental Resources Management Fee 268.80 MS4 Administration Fee 5,793.40 Property Data and Asset/Infrastructure Management Fee 180.00 City Engineering Administration (3.00%) 9,440.10 TOTAL CASH REQUIREMENTS $ 396,532.68 RREECCOOMMMMEENNDDAATTIIOONN Engineering recommends approval of the final plat, site plan, grading and erosion control plan, and utility plan for Lakeville 35 Logistics Center South Addition, subject to the requirements and stipulations within this report. Page 156 of 420 Page 157 of 420 Page 158 of 420 KNOW ALL PERSONS BY THESE PRESENTS: That Lakeville Industrial Acreage Partnership, a Minnesota partnership, fee owner of the following described property: Outlot A, LAKEVILLE 35 LOGISTICS CENTER NORTH ADDITION. Has caused the same to be surveyed and platted as LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION and does hereby dedicate to the public for public use the public way and the drainage and utility easements as created by this plat. In witness whereof said Lakeville Industrial Acreage Partnership, a Minnesota partnership, has caused these presents to be signed by its proper officer this _______ day of _________________, 20______. Lakeville Industrial Acreage Partnership By: Lawrence F. Debalak Its: General Partner STATE OF COUNTY OF This instrument was acknowledged before me this day of , 20 , by Lawrence F. Debalak as General Partner of Lakeville Industrial Acreage Partnership, a Minnesota partnership, on behalf of the partnership. Notary Public, County, Notary Printed Name My Commission Expires I, Glen A. Mullenbach do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.1, Subd. 3, as of the date of this certificate are shown and labeled on this plat; and all public ways are shown and labeled on this plat. Dated this day of , 20 Glen A. Mullenbach, Licensed Land Surveyor, Minnesota License No. 47470 STATE OF MINNESOTA COUNTY OF This instrument was acknowledged before me this day of , 20 , by Glen A. Mullenbach Notary Public, County, Minnesota Notary Printed Name My Commission Expires CITY COUNCIL, CITY OF LAKEVILLE, COUNTY OF DAKOTA, STATE OF MINNESOTA This plat was approved by the City Council of Lakeville, Minnesota this day of , 20 , and hereby certifies compliance with all requirements as set forth in Minnesota Statues, Section 505.03, Subd. 2. By: By: Mayor Clerk LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION ENGINEERING, PLANNING AND LAND SURVEYING SAMBATEK, INC. SHEET 1 OF 2 SHEETS COUNTY SURVEYOR, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approved this day of , 20 . By: Todd B. Tollefson, Dakota County Surveyor COUNTY BOARD, COUNTY OF DAKOTA, STATE OF MINNESOTA We do hereby certify that on the 7th day of January, 2025, the Board of Commissioners of Dakota County, Minnesota approved this plat of LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION, and said plat is in compliance with the provisions of Minnesota Statutes, Section 503.03 Subd. 2 and pursuant to the Dakota County Contiguous Plat Ordinance. By: Attest: Chair, Dakota County Board Dakota County Treasurer – Auditor DEPARTMENT OF PROPERTY TAXATION AND RECORDS, COUNTY OF DAKOTA, STATE OF MINNESOTA Pursuant to Minnesota Statutes, Section 505.021, Subd. 9, taxes payable in the year 20 on the land hereinbefore described have been paid. Also pursuant to Minnesota Statutes, Section 272.12, there are no delinquent taxes and transfer entered this day of , 20 . By: Amy A. Koethe, Director, Department of Property Taxation and Records COUNTY RECORDER, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that this plat of LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION was filed in the office of the County Recorder for public record on this day of ________, 20 , at o'clock .M., and was duly filed in Book of Plats, Page as Document Number . By: Amy A. Koethe, County Recorder Page 159 of 420 NORTH LINE OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T114, R21 WEST LINE OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T116, R21 EAST LINE OF THE NE 1/4 OF SEC. 36, T114, R21 SW C O R N E R O F T H E S E 1/ 4 O F T H E N E 1 / 4 S E C . 36 , T 1 1 4 , R 2 1 SE CORNER OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T114, R21 NE CORNER OF THE NE 1/4 SEC. 36, T114, R21 SOUTH LINE OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T114, R21 S O U T H W E S T E R L Y RI G H T - O F - W A Y L I N E O F C . S . A . H N O . 7 0 NW CORNER OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T114,R21 LOT 1 GRE TRANSMISSION LINE EASEMENT PER DOC. NO. 1692406 TRANSMISSION LINE EASEMENT PER DOC. NO. 613697 DAKOTA COUNTY CAST IRON MONUMENT CAP #16456 C A P # 1 6 4 5 6 MAG NAIL BLOCK 1 10 10 1 0 1 0 10 10 10 TRANSMISSION EASEMENT PER DOC NO. 613697 10 OUTLOT A 0 NORTH SCALE IN FEET 80 160 LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION ENGINEERING, PLANNING AND LAND SURVEYING SAMBATEK, INC. BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING LOT LINES, AND BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING PUBLIC WAYS, AS SHOWN ON THIS PLAT. 10 10 10 10 DENOTES DAKOTA COUNTY SECTION CORNER MONUMENT DENOTES 1/2 INCH BY 16 INCH IRON PIPE SET AND MARKED BY LICENSE NO. 47470, UNLESS OTHERWISE NOTED. DENOTES 1/2 INCH IRON PIPE MONUMENT FOUND MARKED BY LICENSE NO. 53642 UNLESS OTHERWISE NOTED THE EAST LINE OF OUTLOT A, LAKEVILLE 35 LOGISTIC CENTER NORTH ADDITION IS ASSUMED TO HAVE A BEARING OF SOUTH 00 DEGREE 06 MINUTES 21 SECONDS WEST DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS: (NOT TO SCALE) SHEET 2 OF 2 SHEETS DENOTES RESTRICTED ACCESS TO DAKOTA COUNTY PER THE DAKOTA COUNTY CONTIGUOUS PLAT ORDINANCE VICINITY MAP SECTION 36, TOWNSHIP 114N, RANGE 21W, DAKOTA COUNTY, MINNESOTA NOT TO SCALE C. S . A . H . N O . 7 0 SITE 215TH ST (J U N I P E R W A Y ) Page 160 of 420 NO BUILDINGS OBSERVED NO BUILDINGS OBSERVED WEST LINE OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T116, R21 EA S T L I N E O F T H E N E 1 / 4 OF S E C . 3 6 , T 1 1 6 , R 2 1 SW CORNER OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T116,R21 SE CORNER OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T116,R21SOUTH LINE OF THE SE 1/4 OF THE NE 1/4 SEC. 36, T116, R21 S O U T H W E S T E R L Y R I G H T - O F - W A Y L I N E O F C. S . A . H N O . 7 0 LOT 1 GRE TRANSMISSION LINE EASEMENT PER DOC. NO. 1692406 TRANSMISSION LINE EASEMENT PER DOC. NO. 613697 DAKOTA COUNTY CAST IRON MONUMENT CAP #16456 C A P # 1 6 4 5 6 MAG NAIL BLOCK 1 10 10 1 0 1 0 10 10 10 TRANSMISSION EASEMENT PER DOC NO. 613697 10 (J U N I P E R W A Y ) C. S . A . H . N O . 7 0 215TH STREET W. OUTLOT A BUILDING SETBACK PARKING SETBACK BUILDING SETBACK PARKING SETBACK BUILDING SETBACK PARKING SETBACK B E N C H M A R K # 1 T N H E L E V : 1 0 3 0 . 8 6 0 NORTH SCALE IN FEET 0 NORTH SCALE IN FEET 40 80 LEGEND Outlot A, LAKEVILLE 35 LOGISTICS CENTER NORTH ADDITION 1.THE VERTICAL DATUM IS BASED ON NAVD88. THE ORIGINATING BENCH MARKS IS BR 19850 SE, REFERENCED FROM THE MNDOT GEODETIC DATABASE SITE BENCHMARK #1 TNH ELEV.=1030.86 SITE BENCHMARK #2 TNH ELEV.=1043.75 PROPERTY DESCRIPTION BENCHMARKS OVERHEAD ELECTRICAL WIRE LIGHT SANITARY SEWER STORM SEWER WATERMAIN UNDERGROUND ELECTRIC GUY ANCHOR UTILITY POLE GUARD POST UNDERGROUND TELEPHONE UNDERGROUND GAS CHAIN LINK FENCE WOOD FENCE BUILDING LINE CONCRETE CURB BITUMINOUS SURFACE GRAVEL SURFACE WET LAND SIGN TRAFFIC MARKERS POND / WATER LINE FEMA FLOOD ZONE LINE SOIL BORING TREE LINE FOUND MONUMENT FOUND CAST IRON MONUMENT EASEMENT LINE SETBACK LINE RESTRICTED ACCESS FOUND RIGHT-OF-WAY MONUMENT SET MONUMENT MARKED LS 53642 SECTION LINE UNDERLYING / ADJACENT LOT TIE LINE BOUNDARY LINE DEED DISTANCE(100.00) CONIFEROUS TREE TRANSFORMER BUILDING CANOPY REGULAR PARKING STALL COUNTGAS METER COMMUNICATIONS MANHOLE ELECTRIC MANHOLE GAS MANHOLE ELECTRIC METER TELEPHONE PEDESTAL CABLE TV BOX GATE VALVE / HYDRANT SANITARY MANHOLE CLEAN OUT STORM MANHOLE STORM CATCH BASIN FLARED END SECTION SPOT ELEVATION CONTOUR RETAINING WALL BLOCK RETAINING WALL STONE RETAINING WALL RIGHT-OF-WAY LINE WIRE FENCE DECIDUOUS TREE ## DEVELOPMENT SUMMARY AREA LOT 1, BLOCK 1 OUTLOT A R/W DEDICATION SETBACKS (PARKING) FRONT YARD REAR YARD SIDE YARD SETBACKS (BUILDING) FRONT YARD REAR YARD SIDE YARD ZONING EXISTING ZONING PROPOSED ZONING 20 FT 10 FT 10 FT 50 FT 30 FT 30 FT OP OFFICE PARK OP OFFICE PARK 595,144 SF 13.66 AC 52,952 SF 1.22 AC 20,755 SF 0.48 AC 1.ALL AREAS ARE ROUNDED TO THE NEAREST SQUARE FOOT. 2.STREET NAMES ARE SUBJECT TO APPROVAL BY THE CITY. 3.THE NAME OF THE PLAT IS LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION DEVELOPMENT NOTES 24 . 1 S ( L M S T E C H ) | TH O M A S K E E L E Y | 3/ 1 0 / 2 0 2 6 9 : 2 8 : 4 2 A M L: \ P R O J E C T S \ 5 4 2 2 8 \ C A D \ S U R V E Y \ S H E E T S \ 5 4 2 2 8 - P P L A T . D W G :C2 . 0 2 P R E L I M I N A R Y P L A T PRELIMINARY PLAT C2.02 5 THE EAST LINE OF THE NORTHEAST QUARTER OF SEC. 36 - T 114 - R21 IS ASSUMED TO HAVE A BEARING OF SOUTH 00 DEGREES 06 MINUTES 21 SECONDS WEST BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING RIGHT-OF-WAY LINES, AS SHOWN ON THIS PLAT. 10 10 DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS: (NOT TO SCALE) LAKEVILLE 35 LOGISTICS CENTER SOUTH ADDITION NO DATE BY CKD APPR SHEET OF Date License # Print Name: DRAWN BY DESIGNED BY CHECKED BY I hereby certify that this plan, survey, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. PROJECT NO. PRELIMINARY DESIGN REVIEW PERMIT SUBMITTAL CONSTRUCTION DOCUMENTS REV. COMMENT Engineering | Surveying | Planning | Environmental 24 . 1 S ( L M S T E C H ) | TH O M A S K E E L E Y | 3/ 1 0 / 2 0 2 6 9 : 2 8 : 4 2 A M L: \ P R O J E C T S \ 5 4 2 2 8 \ C A D \ S U R V E Y \ S H E E T S \ 5 4 2 2 8 - P P L A T . D W G :C2 . 0 2 P R E L I M I N A R Y P L A T © 2026 Sambatek LIKEWISE PARTNERS LAKEVILLE 35 LOGISTICS CENTER SOUTH LAKEVILLE, MN PRELIMINARY SITE DEVELOPMENT PLANS 20 54228 01/05/2026 02/20/2026 GAM GAM GLEN A. MULLENBACH 47470 12/12/2025 IF/SG JDB EWM CLIENT REVIEW SET 01/05/2026 IF/SG JDB EWM CITY LAND USE APPLICATION SUBMITTAL 02/20/2026 TPK JDB EWM CITY LAND USE APPLICATION SUBMITTAL NOT FO R C O N S T R U C T I O N Page 161 of 420 50' BUILDING SETBACK 5 0 ' B U I L D I N G S E T B A C K 2 0 ' P A R K I N G S E T B A C K 10 ' P A R K I N G S E T B A C K P R O P O S E D B U I L D I N G 1 8 9 , 6 7 8 S F FF E : 1 0 3 7 . 0 0 L O T 1 , B L O C K 1 1 5 . 9 7 4 A C , 6 9 5 , 8 1 4 S F N O PA R K I N G N O P A R K I N G N O P A R K I N G N O PA R K I N G N O P A R K I N G NO PA R K I N G PROPOSED BUILDING 170,978 SF FFE=1041.50 656.0' x 265.0' FILTRATION BASIN 100-YEAR HWL: 1033.25 10-YEAR HWL: 1032.34 OUTLET: 1031.20 BOTTOM: 1030.50 NURP POND 100-YEAR HWL:1033.23 10-YEAR HWL: 1032.30 OUTLET 1031.20 NWL:1030.50 BOTTOM:1022.00 LOT 1 BLOCK 1 10 10 1 0 10 10 10 10 10 OUTLOT A NO PA R K I N G NO PA R K I N G NO PA R K I N G TE M P O R A R Y G R A D I N G E A S E M E N T TEMPORARY CONSTRUCTION EASEMENT 24.0' 20.0' TYP 20.0' TYP 24.0' 9. 0 ' TY P 20 . 0 ' TY P 20 . 0 ' TY P 9.0' TYP 24 . 0 ' 24. 0 ' 60.0'55.0'70.0' 10.0' 12 . 0 ' 30.0' 24.0' 42 69 18 24 25 30 ' B U I L D I N G S E T B A C K 16 19 13 65 6 . 0 ' 265.0' A A A A A A A A A A A A A A A A A A AA B B B B B B B B D E E E E E H H H H H H D D DF G I A A G F G G F G G F G G 12 14 14 J FUTURE 10' BITUMINOUS TRAIL R5. 0 ' TY P R6 0 . 0 ' R 3 6 . 0 ' R5.0 ' TYP R4 0 . 0 ' R1 6 . 0 ' R10.0' R40.0' R10.0' R19. 0 ' R 3 0 . 0 ' R3 0 . 0 ' 20' PARKING SETBACK 251ST STREET IMPROVEMENTS BY OTHERS K NO PARKING 0" HEIGHT CURB B TRANSITION FROM 0" TO 6" CURB GUTTER TRANSITION TRANSITION FROM 0" TO 6" CURB GUTTER TRANSITION INTEGRAL CURB B NO DATE BY CKD APPR SHEET OF Date License # Print Name: I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. DRAWN BY DESIGNED BY CHECKED BY PROJECT NO. PRELIMINARY DESIGN REVIEW PERMIT SUBMITTAL CONSTRUCTION DOCUMENTS REV. COMMENT Engineering | Surveying | Planning | Environmental 24 . 1 S ( L M S T E C H ) | A L E A S T U T Z | 6 / 1 1 / 2 0 2 6 1 0 : 2 4 : 1 0 A M L: \ P R O J E C T S \ 5 4 2 2 8 \ C A D \ C I V I L \ S H E E T S \ 5 4 2 2 8 - C 3 . 0 1 - S I T E . D W G : C 3 . 0 1 S I T E P L A N © 2026 Sambatek LIKEWISE PARTNERS LAKEVILLE 35 LOGISTICS CENTER SOUTH LAKEVILLE, MN FINAL SITE DEVELOPMENT PLANS 54228 01/05/2026 02/20/2026 IF JOSEPH BAILEY 01/06/2026 58645 12/12/2025 IF/SG JDB EWM CLIENT REVIEW SET 01/05/2026 IF/SG JDB EWM CITY LAND USE APPLICATION SUBMITTAL 02/20/2026 TPK JDB EWM CITY LAND USE APPLICATION SUBMITTAL 05/14/2026 JMW JDB EWM FINAL PLAT APPLICATION 06/12/2026 JMW JDB EWM FINAL PLAT RESUBMITTAL SCALE IN FEET 0 8040 NORTH THE SUBSURFACE UTILITY INFORMATION SHOWN ON THESE PLANS IS A UTILITY QUALITY LEVEL D. THIS QUALITY LEVEL WAS DETERMINED ACCORDING TO THE GUIDELINES OF ASCE/CI 38-02, TITLED "STANDARD GUIDELINES FOR THE COLLECTION AND DEPICTION OF EXISTING SUBSURFACE UTILITY DATA." THE CONTRACTOR AND/OR SUBCONTRACTORS SHALL DETERMINE THE EXACT LOCATION OF ALL EXISTING UTILITIES BEFORE COMMENCING WORK, BY CONTACTING THE NOTIFICATION CENTER (GOPHER STATE ONE FOR MINNESOTA). THE CONTRACTOR AND/OR SUBCONTRACTOR AGREE TO BE FULLY RESPONSIBLE FOR ANY AND ALL DAMAGES, WHICH MIGHT BE OCCASIONED BY HIS OR HER FAILURE TO EXACTLY LOCATE AND PRESERVE ANY AND ALL UTILITIES (UNDERGROUND AND OVERHEAD). IT SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR TO RELOCATE ALL EXISTING UTILITIES WHICH CONFLICT WITH THE PROPOSED IMPROVEMENTS SHOWN ON THE PLANS. PROPOSED EXISTING LEGEND DEVELOPMENT SUMMARY RETAINING WALL WETLAND TREE LINE SAW CUT LINE BOLLARD PARKING STALL COUNT## KEY NOTE HEAVY DUTY ASPHALT PAVING CONCRETE PAVING CONCRETE SIDEWALK PAVEMENT BY OTHERS (SEE ARCHITECTURAL PLANS) BOUNDARY LINE STANDARD DUTY ASPHALT PAVING LIGHT POLE (BY OTHERS) EASEMENT LINE CONCRETE CURB BUILDING LINE SIGN BUILDING SUMMARY STANDARD STALLS PROVIDED ADA PROVIDED TRAILER STALLS PROVIDED PROOF OF PARKING TOTAL STALLS PROVIDED SETBACKS (PARKING) FRONT YARD REAR YARD SIDE YARD SETBACKS (BUILDING) FRONT YARD REAR YARD SIDE YARD 176 STALLS 8 STALLS 42 STALLS 40 STALLS 226 STALLS 20 FT 10 FT 10 FT 50 FT 30 FT 30 FT 24 . 1 S ( L M S T E C H ) | A L E A S T U T Z | 6 / 1 1 / 2 0 2 6 1 0 : 2 4 : 1 0 A M L: \ P R O J E C T S \ 5 4 2 2 8 \ C A D \ C I V I L \ S H E E T S \ 5 4 2 2 8 - C 3 . 0 1 - S I T E . D W G : C 3 . 0 1 S I T E P L A N SITE PLAN C3.01 6 21 PROPOSED PERVIOUS PROPOSED IMPERVIOUS TOTAL SITE AREA 304,826 SF 6.99 AC 352,504 SF 8.09 AC 657,330 SF 15.08 AC REQUIRED SUMMARY ASSUME GROSS BLDG. SQ. FOOTAGE -10% ASSUME 10% OFFICE AT 1/200 ASSUME 90% WAREHOUSE AT 1/1000 TOTAL STANDARD STALLS REQUIRED TOTAL STANDARD STALLS PROVIDED = 152,100 SF = 76 STALLS = 137 STALLS = 213 STALLS = 182 STALLS A. BUILDING, STOOPS, STAIRS (SEE ARCHITECTURAL PLANS) B. B-612 CONCRETE CURB AND GUTTER (SEE SHEET C9.02, DETAIL 01) C. CONCRETE APRON (SEE SHEET C9.02, CITY DETAIL LV-ST-4) D. FLAT CURB SECTION (SEE SHEET 9.02, DETAIL 01) E. CONCRETE SIDEWALK (SEE SHEET 9.02, DETAIL 06) F. ADA ACCESS LOCATION G. ACCESSIBLE STALL STRIPING (SEE SHEET 9.02, DETAIL 04) H. ACCESSIBLE PARKING SIGN (SEE SHEET, 9.02, DETAIL 05) I. TRANSFORMER J. TREE PROTECTION FENCE (SEE SHEET L1.03, DETAIL 5) K. MONUMENT SIGN KEY NOTES N.T.S. 32' 15' 53' 11.2'± BUILDING WALLWB-67 32' 15' 48' CONCRETE LANDING PAD 11.2'± WB-62 BUILDING WALL CONCRETE LANDING PAD WB-62 - Interstate Semi-Trailer WB-67 - Interstate Semi-Trailer 11.2'36.8' 11.2'41.8' 15' 32' ±4.8' ±5.2 DOLLY PAD 53' AND 48' DRY TRAILERS TREE PROTECTION FENCE AREA LOT 1, BLOCK 1 OUTLOT A R/W DEDICATION 595,144 SF 13.66 AC 52,952 SF 1.22 AC 20,755 SF 0.48 AC CAUTION OVERHEAD TRANSMISSION LINES. CONTRACTOR TO COORDINATE WITH GREAT RIVER ENERGY FOR WORK WITHIN THE EASEMENT AND UNDER THE TRANSMISSION LINES. FUTURE BITUMINOUS TRAIL SCALE: 1"=10' TYPICAL BUILDING ENTERANCE Required Parking: 184 SpacesProposed: 184 Spaces Page 162 of 420 Dakota County Surveyor’s Office Western Service Center 14955 Galaxie Avenue Apple Valley, MN 55124 952.891-7087 Fax 952.891-7127 www.co.dakota.mn.us June 18, 2026 City of Lakeville 20195 Holyoke Ave. Lakeville, MN 55044 Re: LAKEVILLE 35 LOGISTICS CENTER SOUTH The Dakota County Plat Commission met on June 17, 2026, to consider the final plat of the above referenced plat. The plat is adjacent to CSAH 70 (Juniper Way) and is therefore subject to the Dakota County Contiguous Plat Ordinance. The site includes one lot for a commercial building site. The right-of-way guidelines along CSAH 70 as a 4-lane divided roadway are 75 feet of half right of way, which have been met. No access is shown to CSAH 70 except at 215th Street. Restricted access is required along all of CSAH 70 except one opening at 215th Street. A quit claim deed for restricted access to Dakota County is required with the recording of the plat mylars. As noted, the intersection at CSAH 70/215th Street West will be changed to a restricted access location in the future. The Plat Commission has approved the final plat provided that the described conditions are met and will recommend approval to the County Board of Commissioners meeting on July 7, 2026. Traffic volumes on CSAH 70 are 13,300 ADT and are anticipated to be 16,800 ADT by the year 2040. No work shall commence in the County right of way until a permit is obtained from the County Transportation Department and no permit will be issued until the plat has been filed with the County Recorder’s Office. The Plat Commission does not review or approve the actual engineering design of proposed accesses or other improvements to be made in the right of way. Nothing herein is intended to restrict or limit Dakota County’s rights with regards to Dakota County rights of way or property. The Plat Commission highly recommends early contact with the Transportation Department to discuss the permitting process which reviews the design and may require construction of highway improvements, including, but not limited to, turn lanes, drainage features, limitations on intersecting street widths, medians, etc. Please contact TJ Bentley regarding permitting questions at (952) 891-7115 or Todd Tollefson regarding Plat Commission or Plat Ordinance questions at (952) 891-7070. Sincerely, Todd B. Tollefson Secretary, Plat Commission c: Joseph Bailey, Sambatek Page 163 of 420 Date: 7/20/2026 Post Consumer Brands Parking Lot Expansion Proposed Action Staff recommends adoption of the following motion: Move to approve the Site Improvement Performance Agreement (SIPA) and Stormwater Maintenance Agreement for Post Consumer Brands. Overview Post Consumer Brands has submitted site plans for a parking lot expansion at Post Consumer Brands, located at 20802 Kensington Boulevard within the Fairfield Business Campus. The request to expand the parking lot is to meet the need of employees working at the site and will be done in two phases. The initial expansion includes 127 parking spaces and stormwater management for the site. A second expansion of the parking lot would provide an additional 111 spaces. The parking lot expansion requires stormwater management on site to address the expansion area, which necessitates City Council approval of a Site Improvement Performance Agreement (SIPA) and Stormwater Maintenance Agreement (SMA). The applicant has agreed to the SIPA and SMA but weren't able to have the appropriate person within their organization sign the agreements prior to being submitted to the agenda; the agreements will be signed prior to the City Council meeting. The site improvements comply with Zoning Ordinance requirements and are approved by City staff. Supporting Information 1. Site Improvement Performance Agreement 2. Stormwater Maintenance Agreement 3. July 14, 2026 Engineering report Financial Impact: $0 Budgeted: No Source: Envision Lakeville Community Values: Diversified Economic Development Report Completed by: Kris Jenson, Planning Manager Page 164 of 420 1 239749v5 Post Lakeville East Parking Lot Expansion (reserved for recording information) SITE IMPROVEMENT PERFORMANCE AGREEMENT POST LAKEVILLE EAST PARKING LOT EXPANSION AGREEMENT dated ____________________, 2026, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”) and MOM BRANDS COMPANY, LLC, a Minnesota limited liability company (“Developer”). 1. BACKGROUND. A. The Developer has submitted to the City a Site Plan for property in the City of Lakeville, Minnesota, on property legally described on Exhibit “A” attached hereto and made a part hereof (hereinafter referred to as the “Subject Property”). B. The development of the Subject Property includes the construction and expansion of one privately owned and maintained parking lot (“Improvements”). 2. CONDITIONS OF APPROVAL. The City approved the Site Plan conditioned upon Developer entering into this Agreement, furnishing the security required by it and recording of this Agreement together with any appropriate consents prior to issuance of a building permit for or development of the Property. Page 165 of 420 2 239749v5 Post Lakeville East Parking Lot Expansion 3. PLANS. The Subject Property shall be developed in accordance with the following plans which are on file with the City. The plans shall not be attached to this Agreement. If the plans vary from the written terms of this Agreement, the written terms shall control. The plans are: Plan A – Existing Conditions and Removals Plan Plan B – Site, Paving, and Utilty Plan Plan C – Truck Flow Plan Plan D – Grading and Drainage Plan Plan E – Erosion and Sediment Control Plan Plan F – Landscape Plan Plan G – Civil Details Plan H – Lighting Photometrics Plan No work can occur outside of the areas indicated on the plans without modifying this Agreement or obtaining a separate grading permit. 4. EROSION CONTROL. The Developer is responsible for obtaining an MPCA Construction Permit for the site prior to construction. The permit requires that all erosion and sediment BMPS be clearly outlined in a site’s SWPPP. Changes made throughout construction must be documented in the SWPPP. Additional erosion control measures may be required during construction as deemed necessary by City staff. Any additional measures required shall be installed and maintained by the Developer. The MS4 Administration Fee has not been collected on the parent parcel and is due with the site plan. $301,142.80 x 2% = $6,022.86 Grading Cost Post Lakeville East Parking Lot Expansion 2026 Rate MS4 Administration Fee Post Lakeville East Parking Lot Expansion 5. LICENSE. Developer hereby grants the City, its agents, employees, officers and contractors a license to enter the Subject Property to perform all work and inspections deemed appropriate by the City Page 166 of 420 3 239749v5 Post Lakeville East Parking Lot Expansion in conjunction with site development. This license shall expire upon the issuance of a certificate of occupancy for the Subject Property. 6. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, utility and street construction will be from Kenbridge Court. 7. CITY ENGINEERING ADMINISTRATION AND CONSTRUCTION OBSERVATION. The Developer shall pay for construction observation performed by the City's in-house engineering staff or consulting engineer. Construction observation shall include part or full time inspection of proposed public utilities and will be billed on hourly rates estimated to be five percent (5%) of the estimated construction cost. 8. DRAINAGE AND GRADING. As and to the extent required for the installation of the Improvements, Developer (or its agents, employees, or contractors) shall grade the Subject Property in accordance with the approved Grading and Drainage Plan. The plan shall conform to City of Lakeville specifications. Within thirty (30) days after completion of the grading necessary for the installation of the Improvements and final establishment of ground cover or temporary stabilization approved by the City (unless and to the extent otherwise permitted hereunder), the Developer shall provide the City with an “as constructed” plan certified by a registered land surveyor or engineer that all Improvements have been constructed pursuant to the applicable, approved plans. Prior to the release of the grading and erosion control security with respect to the installation of the Improvements, the “as constructed” plan for the Improvements must be submitted to verify that the construction of the Improvements are consistent with the approved Plans, and amendments thereto as approved by the City Engineer, and that all required property monuments are in place. If the final “as constructed” plan for the Improvements is not timely completed, the City may enter the lot, perform the work, and draw on the letter of credit. Upon satisfactory completion of the Improvements and submission of the “as constructed” plans for the Improvements, the security, less any draw made by the City, shall be released. Page 167 of 420 4 239749v5 Post Lakeville East Parking Lot Expansion This site contains greater than one acre of site disturbance and is considered a part of common development greater than one acre. A National Pollution Discharge Elimination System General Stormwater Permit for construction activity is required from the Minnesota Pollution Control Agency for areas exceeding one acre being disturbed by grading. 9. CLEAN UP. The Developer shall clean dirt and debris from streets that has resulted from construction work by the Developer, subcontractors, their agents or assigns. Prior to any construction on the Subject Property, the Developer shall identify in writing a responsible party and schedule for erosion control, street cleaning, and street sweeping. 10. STORM SEWER. The Developer shall construct one privately owned and maintained stormwater management basin to collect and treat the stormwater runoff generated from the site. The basin will outlet to the storm sewer system southwest of the site. The Developer shall enter into a Stormwater Maintenance Agreement with the City in a recordable form approved by the City, for the stormwater system prior to recording of the Site Improvement Performance Agreement. The stormwater system shall provide water quality treatment, volume reduction, and rate control of the stormwater runoff generated from the proposed site improvements and is in compliance with City Ordinance requirements. The Developer shall construct privately owned and maintained storm sewer systems to collect and convey stormwater runoff generated from the lot to drain off site. Draintile construction is required in areas of non-granular soils for the parking lot sub-cuts. Any additional draintile construction, which is deemed necessary during construction shall be the Developer’s responsibility to install and finance. 11. SANITARY SEWER. The site is located within subdistrict SC-12075 of the South Creek sanitary sewer district as identified in the City’s Sanitary Sewer Comprehensive Plan. No alterations to the existing sanitary sewer service are proposed with the site plan. 12. WATERMAIN. The site includes the offset of the existing public 8” watermain service to accommodate the proposed storm sewer improvements. Page 168 of 420 5 239749v5 Post Lakeville East Parking Lot Expansion 13. PARKS, TRAILS, AND SIDEWALKS. The City’s Parks, Trails and Open Space Plan does not designate a park within this site. The proposed site plan does not include the construction of public trails and sidewalks. 14. LANDSCAPING. Landscaping shall be installed in accordance with the approved landscape plan. The Developer shall post a $42,507.00 landscaping security to ensure that the landscaping is installed in accordance with the approved plan. All trees shall be warranted to be alive, of good quality, and disease free for twelve (12) months after planting. Any replacements shall be warranted for twelve (12) months from the time of planting. The Developer or property owner is responsible for contacting the City when all the landscaping has been installed to set up an inspection. Fifty percent (50%) of the security will be released when all the landscaping has been installed and inspected by City staff and the remaining fifty percent (50%) will be released one year after the landscaping inspection and any warranty work has been completed. 15. TREE PRESERVATION PLAN. Plans provide a partial inventory of the existing trees onsite, identifying those to be removed as part of construction. A total of 146 diameter inches are inventoried with 132 diameter inches of common trees, and 14 diameter inches of coniferous trees to be removed. The remaining trees onsite, outside the construction limits were not inventoried. The landscape plan proposes to plant 8 trees with a total of 20 diameter inches which meets the replacement requirements of the tree preservation ordinance and provides parking lot screening/landscaping. The location of temporary tree protection fencing is identified on the landscape plan. All trees identified for preservation shall be protected with appropriate tree protection fencing and measures installed prior to, and maintained throughout, construction. Any trees to be preserved that are damaged or removed during construction will require replacement in accordance with the Tree Preservation Ordinance. 16. SPECIAL PROVISIONS. The following special provisions shall apply to this Agreement: A. The Subject Property shall be developed according to the plans approved by the City. B. The Developer shall submit the site and construction drawings in an electronic format. The electronic format shall be in .pdf and either a .dwg file (AutoCAD) or Page 169 of 420 6 239749v5 Post Lakeville East Parking Lot Expansion C. The Developer shall pay a cash fee for City Engineering Administration based on three percent (3.00%) of the estimated construction, or $10,984.28. 17. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the terms of this Agreement, payment of real estate taxes including interest and penalties, payment of special assessments, payment of the costs of all public improvements, and construction of all public improvements, the Developer shall furnish the City with a cash escrow or letter of credit, in the form attached hereto, from a bank ("Security") for $450.756.22 prior to City Council execution of this Agreement. The amount of the Security is calculated as follows: CONSTRUCTION COSTS: Storm Sewer $50,000.00 Watermain 15,000.00 Grading, Erosion Control, and Restoration 301,142.80 CONSTRUCTION SUB-TOTAL $366,142.80 OTHER COSTS: Developer’s Design (3.0%) $10,984.28 Developer’s Construction Survey (2.5%) 9,153.57 City’s Legal Expense (0.5%) 1,830.71 City Construction Observation (5.0%) 18,307.14 Developer’s Record Drawing (0.5%) 1,830.71 Landscaping 42,507.00 OTHER COSTS SUB-TOTAL 84,613.42 TOTAL PROJECT SECURITIES: $450,756.22 This breakdown is for historical reference; it is not a restriction on the use of the Security. The bank shall be subject to the approval of the City Administrator. The City may draw down the Security, on five (5) business days prior written notice to the Developer, for any violation of the terms of this Agreement or without notice if the Security is allowed to lapse prior to the end of the required term. If the Security is drawn down, Page 170 of 420 7 239749v5 Post Lakeville East Parking Lot Expansion the proceeds shall be used to cure the default. Upon receipt of proof satisfactory to the City that work has been completed and financial obligations to the City have been satisfied, with City approval the Security may be reduced from time to time by ninety percent (90%) of the financial obligations that have been satisfied. Ten percent (10%) of the amounts certified by the Developer's engineer shall be retained as Security until all improvements have been completed, all financial obligations to the City satisfied, the required "as constructed" plans have been received by the City, a warranty security is provided, and the public improvements are accepted by the City Council. The City’s standard specifications for utility and street construction outline procedures for security reductions. 18. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash requirements under this Contract which must be furnished by the Developer prior to issuance of a building permit. A. MS4 Administration Fee $6,022.86 B. City Engineering Administration (3.00%) 10,984.28 SUBTOTAL CASH REQUIREMENTS $17,007.14 19. RESPONSIBILITY FOR COSTS. A. The Developer shall pay all costs incurred by it or the City in conjunction with the development of the Subject Property, including but not limited to legal, planning, engineering and inspection expenses incurred in connection with approval of the site plan, the preparation of this Agreement, review of any other plans and documents. B. The Developer shall hold the City and its officers, employees, and agents harmless from claims made by itself and third parties for damages sustained or costs incurred resulting from site approval and development. The Developer shall indemnify the City and its officers, employees, and agents for all costs, damages, or expenses which the City may pay or incur in consequence of such claims, including attorneys' fees. Notwithstanding anything contained within this Section 21(B), Developer shall not be obligated to indemnify or defend the City from and against claims based on any negligence or willful Page 171 of 420 8 239749v5 Post Lakeville East Parking Lot Expansion misconduct by the City, its employees, agents or contractors, or the failure of the City to act in accordance with City ordinances and other applicable laws. C. The Developer shall reimburse the City for costs incurred in the enforcement of this Agreement, including engineering and attorneys' fees. D. The Developer shall pay in full all bills submitted to it by the City for obligations incurred under this Agreement within thirty (30) days after receipt. Bills not paid within thirty (30) days shall accrue interest at the rate of eight percent (8%) per year. 20. MISCELLANEOUS. A. Third parties shall have no recourse against the City under this Agreement. B. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this Agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Agreement. C. The action or inaction of the City shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties and approved by written resolution of the City Council. The City's failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. D. This Agreement shall run with the land and may be recorded against the title to the Subject Property. The Developer covenants with the City, its successors and assigns, that the Developer has fee title to the Subject Property and/or has obtained consents to this Agreement, in the form attached hereto, from all parties who have an interest in the Subject Property; that there are no unrecorded interests in the Subject Property; and that the Developer will indemnify and hold the City harmless for any breach of the foregoing covenants. E. Each right, power or remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set Page 172 of 420 9 239749v5 Post Lakeville East Parking Lot Expansion forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. F. Breach of the terms of this Agreement by the Developer, including nonpayment of billings from the City, shall be grounds for denial of building permits and certificates of occupancy, and the halting of all work on the Subject Property. G. The Developer represents to the City that the development complies with all City, county, metropolitan, state, and federal laws and regulations, including but not limited to: subdivision ordinances, zoning ordinances, and environmental regulations. If the City determines that the development does not comply, the City may, at its option, refuse to allow construction or development work in the development until the Developer does comply. Upon the City’s demand, the Developer shall cease work until there is compliance. 21. DEVELOPER’S DEFAULT. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer, except in an emergency as determined by the City, is first given notice of the work in default, not less than ten (10) days in advance. This Agreement is a license for the City to act, and it shall not be necessary for the City to seek a Court order for permission to enter the Subject Property. When the City does any such work, the City may, in addition to its other remedies, assess the cost in whole or in part. 22. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail at the following address: 20802 Kensington Blvd, Lakeville, Minnesota 55044. Notices to the City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to the City by certified mail in care of the City Administrator at the following address: Lakeville City Hall, 20195 Holyoke Avenue, Lakeville, Minnesota 55044. Page 173 of 420 10 239749v5 Post Lakeville East Parking Lot Expansion CITY OF LAKEVILLE BY: __________________________________________ John Bermel, Acting Mayor (SEAL) AND __________________________________________ Taylor Snider, Deputy City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2026, by John Bermel and by Taylor Snider, respectively the Acting Mayor and Deputy City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ______________________________________________ NOTARY PUBLIC Page 174 of 420 11 239749v5 Post Lakeville East Parking Lot Expansion DEVELOPER: MOM BRANDS COMPANY, LLC By: _______________________________ [Print Name] Its: [Title] STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2026, by ____________________________, the __________________________________________________ of MOM BRANDS COMPANY, LLC, a Minnesota limited liability company, on behalf of said entity. ________________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL, KNUTSON Professional Association 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: 651-452-5000 AMP/smt Page 175 of 420 12 239749v5 Post Lakeville East Parking Lot Expansion EXHIBIT “A” TO SITE IMPROVEMENT PERFORMANCE AGREEMENT Legal Description Lot One (1) and Lot Two (2) Block One (1), FAIRFIELD BUSINESS CAMPUS, according to the recorded plat thereof, Dakota County, Minnesota. (Torrens Property - Certificate of Title No. 167796) Page 176 of 420 1 239751v3 (Reserved for Recording Data) STORMWATER MAINTENANCE AGREEMENT/ BEST MANAGEMENT PRACTICE FACILITIES AND EASEMENT AGREEMENT THIS AGREEMENT is made and entered into as of the ______ day of _____________, 2026, by and between MOM BRANDS COMPANY, LLC, a Minnesota limited liability company (the “Owner”) and the CITY OF LAKEVILLE, a Minnesota municipal corporation (the “City”). RECITALS A. The Owner and/or affiliate of Owner is the owner of certain real property located in Dakota County, Minnesota legally described in Exhibit A attached hereto ("Property"); and B. The Owner is proceeding to develop the Property, and has requested approval of the site plan for the proposed development; and C. The final site plans for the Property, hereinafter called the "Plans", which are expressly made a part hereof, as approved or to be approved by the City, provides for detention/retention of stormwater within the confines of the Property; and D. The City and the Owner agree that the health, safety, and welfare of the residents of the City of Lakeville, Minnesota, require that on-site stormwater management/BMP facilities be constructed and maintained on the Property; and E. The City requires that on-site stormwater management/BMP facilities (“Stormwater Facilities”) as shown on the Plans be constructed and adequately maintained by the Owner as a condition of final site plan approval; and F. As a condition of final site plan approval the Owner is required to enter into this Agreement and grant to the City an easement for access, drainage and utility over portions of the Property (the “Easement Areas”) legally described and depicted on Exhibit B attached hereto to comply with work required under the terms of this Agreement. Page 177 of 420 2 239751v3 NOW, THEREFORE, in consideration of mutual covenants of the parties set forth herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Construction of Stormwater Improvements. Owner shall construct the Stormwater Facilities in accordance with the plans and specifications identified in the Plans. 2. Maintenance of Stormwater Improvements. A. The Owner shall adequately maintain the Stormwater Facilities in accordance with the Stormwater Maintenance Plan and the City engineering standards for stormwater treatment facilities attached hereto as Exhibit C. This includes all pipes, channels, and other conveyances built to convey stormwater to the facility, as well as all structures, improvements, and vegetation provided to control the quantity and quality of the stormwater. Adequate maintenance is herein defined as good working condition so that these facilities are performing their design functions. B. The Owner will perform the work necessary to keep these Stormwater Facilities in good working order as appropriate. In the event a maintenance schedule for the Stormwater Facilities (including sediment removal) is outlined on the approved plans, the Owner shall adhere to the schedule and shall comply with all federal, state, and local regulations relating to the disposal of material. 3. Inspection and Reporting. The Owner shall cause the Stormwater Facilities to be inspected and submit an inspection report annually and shall be responsible for the payment of any associated costs. The purpose of the inspection is to assure safe and proper functioning of the facilities. The inspection shall cover the entire facilities, berms, outlet structure, pond areas, access roads, buffers, etc. Deficiencies shall be noted in the inspection report. A storage treatment basin will be considered inadequate if it is not compliant with all requirements of the approved Plan and City engineering standards set forth in Exhibit C. 4. City Access and Maintenance Rights. A. The Owner hereby grants permission to the City, its authorized agents and employees, to enter upon the Property and to inspect the stormwater management/BMP facilities whenever the City deems necessary. The City shall provide the Owner, its successors and assigns, copies of the inspection findings and a directive to commence with the repairs if necessary (“Inspection Report”). B. In the event the Owner, its successors and assigns, fails to maintain the Stormwater Facilities in good working condition acceptable to the City and such failure continues for 60 days after the City gives the Owner written notice of such failure, the City may enter upon the Property and take whatever steps necessary, including excavation and the storage of materials and equipment, to correct deficiencies identified in the Inspection Report. The City's notice shall specifically state which maintenance tasks are to be performed. The City may charge the costs, including assessing the City’s costs to the Owner’s property taxes of such repairs, to the Owner, its successors and assigns. This provision shall not be construed to allow the City to erect any Page 178 of 420 3 239751v3 structure of permanent nature on the land of the Owner outside of the Easement Areas for the Stormwater Facilities. It is expressly understood and agreed that the City is under no obligation to routinely maintain or repair said Stormwater Facilities, and in no event shall this Agreement be construed to impose any such obligation on the City. In addition, Owner agrees that it is, and will be, solely responsible to address complaints and legal claims brought by any third party with regard to the maintenance and operation and the consequences therefrom related to the Stormwater Facilities. The Owner expressly agrees to defend and hold the City harmless from any such third- party claim. 5. Grant of Easement. Owner hereby grants to the City, its successors and assigns, a permanent non-exclusive easement for the purpose of accessing and maintaining the Stormwater Facilities pursuant to the terms of this Agreement over, on, across, under and through the Easement Areas and access over the Property to the Easement Areas. The easement shall include the rights, but not the obligation, of the City, its contractors, agents, servants, and assigns, to enter upon the Easement to construct, reconstruct, inspect, repair, and maintain said private Stormwater Facilities together with the right to grade, level, fill, drain, pave, and excavate the Easement Areas, and the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the location, construction, and maintenance of said private Stormwater Facilities systems. 6. Reimbursement of Costs. The Owner agrees to reimburse the City for all costs incurred by the City in the enforcement of this Agreement, or any portion thereof, including court costs and reasonable attorneys' fees. 7. Indemnification. This Agreement imposes no liability of any kind whatsoever on the City. The Owner hereby agrees to indemnify and hold harmless the City and its agents and employees against any and all claims, demands, losses, damages, and expenses (including reasonable attorneys' fees) arising out of or resulting from the Owner or the Owner’s agents or employee's negligent or intentional acts, or any violation of any safety law, regulation or code in the performance of this Agreement, without regard to any inspection or review made or not made by the City, its agents or employees or failure by the City, its agents or employees to take any other prudent precautions. In the event the City, upon the failure of the Owner to comply with any conditions of this Agreement, performs said conditions pursuant to its authority in this Agreement, the Owner shall indemnify and hold harmless the City, its employees, agents and representatives for the performance of the Owner’s required work under this Agreement. Notwithstanding the foregoing, Owner shall not be obligated to indemnify or defend the City from and against claims based on any negligence or willful misconduct by the City, its employees, agents or contractors, or the failure of the City to act in accordance with City ordinances and other applicable laws. 8. Notice. All notices required under this Agreement shall either be personally delivered or be sent by certified or registered mail and addressed as follows: To the Owner : MOM Brands Company, LLC 20802 Kensington Blvd Lakeville, MN 55044 Page 179 of 420 4 239751v3 To the City: City of Lakeville 20195 Holyoke Avenue Lakeville, Minnesota 55044 Attn: City Administrator All notices given hereunder shall be deemed given when personally delivered or two business days after being placed in the mail properly addressed as provided herein. 9. Successors/Covenants Run with Property. All duties and obligations of Developer under this Agreement shall also be duties and obligations of Developer’s successors and assigns. The terms and conditions of this Agreement shall run with the Property. [Remainder of page is intentionally left blank. Signature pages to follow.] Page 180 of 420 5 239751v3 PROPERTY OWNER: MOM BRANDS COMPANY, LLC By: _________________________ [print name] Its _______________________ [title] STATE OF MINNESOTA ) )ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of ____________, 2026, by _____________________________, the ______________________________________________ of MOM BRANDS COMPANY, LLC, a Minnesota limited liability company, on behalf of said entity. Notary Public Page 181 of 420 6 239751v3 CITY OF LAKEVILLE By: John Bermel, Acting Mayor (SEAL) And: Taylor Snider, Deputy City Clerk STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this ________ day of ______________, 2026, by John Bermel and by Taylor Snider, the Acting Mayor and Deputy City Clerk of the City of Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP/smt Page 182 of 420 7 239751v3 EXHIBIT A TO STORMWATER MAINTENANCE AGREEMENT Legal Description of the Property Page 183 of 420 8 239751v3 EXHIBIT B Page 1 TO STORMWATER MAINTENANCE AGREEMENT Page 184 of 420 9 239751v3 EXHIBIT B Page 2 TO STORMWATER MAINTENANCE AGREEMENT Page 185 of 420 10 239751v3 EXHIBIT C CITY OF LAKEVILLE ENGINEERING STANDARDS FOR STORM WATER TREATMENT FACILITIES Forebay and Filtration Basin Maintenance Requirements 1. Annual inspection, maintenance reporting and certification by a professional engineer (Provided by Owner). Information must be submitted to the City annually. 2. Excavate basin to original design capacity when one half (1/2) of the wet volume of the basin is lost due to sediment deposition. 3. Remove floatable debris in and around the basin area including, but not limited to: oils, gases, debris and other pollutants. 4. Maintain landscape adjacent to the facility per original design, including but not limited to: maintenance of the buffer strip and other plant materials as per original plan design. 5. Maintenance of all erosion control measures including but not limited to: rip rap storm sewer outlets, catch basin inlets, etc. Infiltration/Rain Garden Maintenance Requirements 1. Inlet and Overflow Spillway – Remove any sediment build-up or blockage and correct any erosion. 2. Vegetation a. Maintain at least 80% surface area coverage of plants approved per plan. b. Removal of invasive plants and undesirable woody vegetation. c. Removal of dried, dead and diseased vegetation. d. Re-mulch void or disturbed/exposed areas. 3. Annual inspection and maintenance efforts must be documented and submitted to the City. Page 186 of 420 City of Lakeville Public Works – Engineering Division Memorandum To: Kris Jenson, Planning Manager From: Jon Nelson, Assistant City Engineer McKenzie L. Cafferty, Environmental Resources Manager Joe Masiarchin, Parks and Recreation Director Copy: Zach Johnson, City Engineer Tina Goodroad, Community Development Director Julie Stahl, Finance Director Dave Mathews, Building Official Date: July 14, 2026 Subject: Post Lakeville East Parking Lot Expansion Site Plan • Site Plan Review • Grading and Erosion Control Plan Review • Utility Plan Review BBAACCKKGGRROOUUNNDD Post Consumer Brands has submitted a site plan application named Post Lakeville East Parking Lot Expansion Site Plan. The proposed site plan is located east of and adjacent to Kenbridge Court. This property consists of Lots 1 and 2 of Block 1 of Fairfield Business Campus (PID 222450001023) and is zoned OP, Office Park. The site plan proposes construction of one parking lot on 23.09 acres. The proposed development will be completed by: Owner: Post Consumer Brands Engineer/Surveyor: VAA, LLC SSIITTEE CCOONNDDIITTIIOONNSS The site consists of an existing office building, parking lot, and bituminous drive lane. The south portion of the parking lot generally drains from north to south. Stormwater is captured in the storm sewer system within the lot and flows south to an existing filtration basin located southwest of the site, then outlets to the east through the existing storm sewer. Page 187 of 420 PPOOSSTT LLAAKKEEVVIILLLLEE EEAASSTT PPAARRKKIINNGG LLOOTT EEXXPPAANNSSIIOONN SSIITTEE PPLLAANN JJUULLYY 1144,, 22002266 PPAAGGEE 22 OOFF 55 SSTTRREEEETT AANNDD SSUUBBDDIIVVIISSIIOONN LLAAYYOOUUTT Kenbridge Court Kenbridge Avenue is identified as a local road in the City’s Transportation Plan. The site proposes utilizing an existing access from Kenbridge Court. Private Parking Lot Development includes the expansion and construction of privately owned and maintained parking lot. CCOONNSSTTRRUUCCTTIIOONN AACC CCEESSSS Construction traffic access and egress for grading, utility and street construction will be from Kenbridge Court. PPAARRKKSS,, TTRRAAIILLSS AANNDD SSIIDD EEWWAALLKKSS The City’s Parks, Trails and Open Space Plan does not designate a park within this site. The proposed site plan does not include the construction of public trails and sidewalks. UUTTIILLIITTIIEESS SSAANNIITTAARRYY SSEEWWEERR The site is located within subdistrict SC-12075 of the South Creek sanitary sewer district as identified in the City’s Sanitary Sewer Comprehensive Plan. No alterations to the existing sanitary sewer service are proposed with the site plan. WWAATTEERRMMAAIINN The site includes the offset of the existing public 8” watermain service to accommodate the proposed storm sewer improvements. DDRRAAIINNAAGGEE AANNDD GG RR AADDIINN GG This site is located within subdistrict SC-135 of the South Creek stormwater district as identified in the City’s Water and Natural Resources Management Plan. Development includes the construction of one stormwater management basin. Drainage will be directed to the stormwater management basin to collect and treat the stormwater runoff generated from the site. The basin will outlet to the storm sewer system southwest of the site. The Developer shall sign a stormwater maintenance agreement for the stormwater system prior to recording of the site improvement performance agreement. The stormwater system shall provide water quality treatment, volume reduction, and rate control of the stormwater Page 188 of 420 PPOOSSTT LLAAKKEEVVIILLLLEE EEAASSTT PPAARRKKIINNGG LLOOTT EEXXPPAANNSSIIOONN SSIITTEE PPLLAANN JJUULLYY 1144,, 22002266 PPAAGGEE 33 OOFF 55 runoff generated from the proposed site improvements and is in compliance with City Ordinance requirements. This site contains greater than one acre of site disturbance and is considered a part of common development greater than one acre. A National Pollution Discharge Elimination System General Stormwater Permit for construction activity is required from the Minnesota Pollution Control Agency for areas exceeding one acre being disturbed by grading. SSTTOORRMM SSEEWWEERR The site includes the construction of privately owned and maintained storm sewer systems. Storm sewer will be installed to collect and convey stormwater runoff generated from the lot to drain off site. Draintile construction is required in areas of non-granular soils for the parking lot sub-cuts. Any additional draintile construction, including perimeter draintile required for building footings, which is deemed necessary during construction shall be the developer’s responsibility to install and finance. FEMA FLOODPLAIN ANALYSIS The site is shown on the Flood Insurance Rate Map (Map No. 27037C0193E; Eff. Date 12/2/2011) as Zone X by the Federal Emergency Management Agency (FEMA). Based on this designation, there are no areas in the site located within a Special Flood Hazard Area (SFHA), as determined by FEMA. WWEETTLLAANNDDSS There are no wetlands in the project area. TTRREEEE PPRREESSEERRVVAATTIIOONN Plans provide a partial inventory of the existing trees onsite, identifying those to be removed as part of construction. A total of 146 diameter inches are inventoried with 132 diameter inches of common trees, and 14 diameter inches of coniferous trees to be removed. The remaining trees onsite, outside the construction limits were not inventoried. The landscape plan proposes to plant 8 trees with a total of 20 diameter inches which meets the replacement requirements of the tree preservation ordinance and provides parking lot screening/landscaping. The location of temporary tree protection fencing is identified on the landscape plan. All trees identified for preservation shall be protected with appropriate tree protection fencing and measures installed prior to, and maintained throughout, construction. Any trees to be preserved that are damaged or removed during construction will require replacement in accordance with the Tree Preservation Ordinance. Page 189 of 420 PPOOSSTT LLAAKKEEVVIILLLLEE EEAASSTT PPAARRKKIINNGG LLOOTT EEXXPPAANNSSIIOONN SSIITTEE PPLLAANN JJUULLYY 1144,, 22002266 PPAAGGEE 44 OOFF 55 EERROOSSIIOONN CCOONNTTRROOLL The Developer is responsible for obtaining an MPCA Construction Permit for the site prior to construction. The permit requires that all erosion and sediment BMPS be clearly outlined in a site’s SWPPP. Changes made throughout construction must be documented in the SWPPP. Additional erosion control measures may be required during construction as deemed necessary by City staff. Any additional measures required shall be installed and maintained by the developer. The MS4 Administration Fee has not been collected on the parent parcel and is due with the site plan. $301,142.80 x 2% = $6,022.86 Grading Cost Post Lakeville East Parking Lot Expansion 2026 Rate MS4 Administration Fee Post Lakeville East Parking Lot Expansion SECURITIES The Developer shall provide a Letter of Credit as security for the Developer-installed improvements relating to the site. Construction costs are based upon cost estimates submitted by the Developer’s contractor on June 8, 2026 and July 14, 2026. CONSTRUCTION COSTS Storm Sewer $50,000.00 Watermain 15,000.00 Grading, Erosion Control and Restoration 301,142.80 SUBTOTAL - CONSTRUCTION COSTS $ 366,142.80 OTHER COSTS Developer’s Design (3.0%) $ 10,984.28 Developer’s Construction Survey (2.5%) 9,153.57 City’s Legal Expense (0.5%) 1,830.71 City Construction Observation (5.0%) 18,307.14 Developer’s Record Drawing (0.5%) 1,830.71 Landscaping 42,507.00 SUBTOTAL - OTHER COSTS $84,613.42 TOTAL PROJECT SECURITY $450,756.22 CASH FEES The Developer shall submit the site plan and construction drawings in an electronic format. The electronic format shall be in .pdf and either .dwg/.dxf or .shx format. Page 190 of 420 PPOOSSTT LLAAKKEEVVIILLLLEE EEAASSTT PPAARRKKIINNGG LLOOTT EEXXPPAANNSSIIOONN SSIITTEE PPLLAANN JJUULLYY 1144,, 22002266 PPAAGGEE 55 OOFF 55 The Developer shall also pay a cash fee for City Engineering Administration. The fee for City Engineering Administration will be based on three percent (3.00%) of the estimated construction cost, or $10,984.28 CASH REQUIREMENTS MS4 Administration Fee $6,022.86 City Engineering Administration (3.00%) 10,984.28 TOTAL CASH REQUIREMENTS $ 17,007.14 RREECCOOMMMMEENNDDAATTIIOONN Engineering recommends approval of the site plan, grading and erosion control plan, and utility plan for Post Lakeville East Parking Lot Expansion Site Plan, subject to the requirements and stipulations within this report. Page 191 of 420 36 37 10 11 17 29 16 18 24 6 35 PR O P E R T Y L I N E EA S E M E N T L I N E PROPERTY LINE EASEMENT LINE PR O P E R T Y L I N E EA S E M E N T L I N E 2 0 . 0 ' T Y P . 2 4 . 0 ' 9.0' PROPOSED CONCRETE SIDEWALK, SEE PLATE NO. LV-ST-15/C503 PROPOSED ADA PARKING STALLS, SEE DETAIL PVMT-82/C503 MILL AND OVERLAY, SEE DETAIL PVMT-07/C501 PROPOSED PARKING STRIPING, SEE DETAIL PVMT-85/C503 PROPOSED HEAVY DUTY BITUMINOUS PAVEMENT SEE DETAIL PVMT-26/C503 2 4 . 0 ' 2 4 . 0 ' 5 . 0 ' 9.0' TYP. 24.0 ' 24. 0 ' 9.0' CB-102 108 LF 18" HDPE WT @ 0.52% CB-101 246 LF 1 8 " H D P E W T @ 0 . 5 2 % 1 9 2 L F 2 4 " S C H 4 0 P V C @ 0 . 4 5 % CB-103 FES-100 PROPOSED SURMOUNTABLE CURB, SEE PLATE NO. 7102K/C503 2 4 . 0 ' 24.0' CB-105 SEE PLATE NO. LV-STM-15A/C502 62 LF 18 " H D P E W T @ 1 . 0 0 % MH-104 CO-106 SEE PLATE NO. LV-STM-10/C502 94 L F 6 " S D R 3 5 P V C @ 0 . 5 0 % 26 23 27 27 24 . 0 ' R2.0' R10.0' R10.0' R2.0' R10.0' R46.0' R5.0' R10.0' R10.0' R2.0' R10.0' R2.0' R10.0' R10.0' R2.0' R70.0' 24.0 ' 2 4 . 0 ' 5 . 0 ' PROPOSED LIGHT DUTY BITUMINOUS PAVEMENT, SEE DETAIL PVMT-27/C502 11.6 ' 11.6 ' 11.6 ' PROPOSED B612 CURB (TYP.), SEE PLATE NO. 7100H/C503 PROPOSED B612 CURB (TYP), SEE PLATE NO. 7100H/C503 5.0' ACCESSIBLE PARKING SIGN (TYP), SEE DETAIL PVMT-19/C503 CO-107 SEE PLATE NO. LV-STM-10/C502 R25.0' 3' CURB TAPER R50.0' 94 L F 6 " S D R 3 5 P V C @ 0 . 5 0 % OFFSET EXISTING WATER LINE SEE PLATE NO. LV-WM-07/C502 18 LF 8" SDR 35 PVC @ 2.00% 11 LF 6" SDR 35 PVC @ 0.00% LIGHT POLE (TYP), SEE DETAIL 5/C505 FOR BASE. LIGHT POLES SHALL MATCH EXISTING ON SITE, ASSUMED TO BE 20' TALL SQUARE ALUMINUM LIGHT POLES. FIXTURE HEIGHT IS 23'. LIGHT FIXTURES SHALL BE LED 3' TRANSITION BETWEEN B612 CURB AND SURMOUNTABLE CURB R45.0' R45.0' 3' TRANSITION BETWEEN B612 CURB AND SURMOUNTABLE CURB R45.0' R45.0' PROPOSED SURMOUNTABLE CURB, SEE PLATE NO. 7102K/C503 MILL AND OVERLAY, SEE DETAIL PVMT-07/C501 PROPOSED CONCRETE PAVEMENT, SEE DETAIL PVMT-04/C503 PROPOSED B612 CURB (TYP.), SEE PLATE NO. 7100H/C503 R30.0' R25.0' R5.0' R10.0' 24 3' CURB TAPER FUTURE PARKING SHOWN FOR REFERENCE ONLY 127 LF 4" PVC SDR 35 @ 1.33% PERFORATED DRAINTILE 60 LF 4" PVC SDR 35 @ 2.32% PERFORATED DRAINTILE 42 LF 4" PVC SDR 35 @ 2.43% PERFORATED DRAINTILE 75 LF 4" PVC SDR 35 @ 2.04% PERFORATED DRAINTILE 176 LF 4" PVC SDR 35 @ 0.43% PERFORATED DRAINTILE DRAINTILE CLEANOUT SEE PLATE NO. LV-STM-10/C502 DRAINTILE CLEANOUT SEE PLATE NO. LV-STM-10/C502 LEGEND EXISTING DRAINTILE EXISTING STORM SEWER MANHOLE EXISTING FES W/ RIPRAP EXISTING CLEANOUT EXISTING WATER VALVE EXISTING CATCH BASIN EXISTING HYDRANT EXISTING FIBER OPTIC LINE EXISTING FES EXISTING CONCRETE PAVEMENT EXISTING ROCK SURFACE EXISTING TREES EXISTING TREES EXISTING EASEMENT LINE EXISTING PROPERTY LINE EXISTING BITUMINOUS PAVEMENT LIMITS OF CONSTRUCTION EXISTING LIGHT POLE EXISTING STORM SEWER EXISTING SANITARY SEWER EXISTING WATER LINE EXISTING STORM SEWER PROPOSED CONCRETE SIDEWALK PROPOSED LIGHT DUTY BITUMINOUS PAVEMENT PROPOSED ROCK MULCH PROPOSED STORM SEWER PROPOSED HEAVY DUTY BITUMINOUS PAVEMENT PROPOSED LIGHT POLE PROPOSED DRAIN TILE PROPOSED FES PROPOSED CATCHBASIN / MH PROPOSED SURMOUNTABLE CURB PROPOSED B612 CURB MANHOLE / CATCHBASIN SCHEDULE STRUCTURE NAME: CB-101 CB-102 CB-103 CB-105 MH-104 MH SIZE / GRATE 60" MH / R-2501-F 48" MH / R-2501-F 48" MH / R-2501-F 48" MH / R-2580-C 48" MH / R-1737 RIM ELEVATION: 1097.73 1097.30 1097.52 1091.50 1092.70 PIPES IN: 18" HDPE INV =1091.88 (E) 18" HDPE INV =1092.65 (SW) 8" PVC INV =1087.20 (NW) 18" HDPE INV =1085.74 (W) PIPES OUT 24" PVC INV =1091.88 (SE) 18" HDPE INV =1093.21 (NE) 18" HDPE INV =1093.16 (W) 18" HDPE INV =1086.36 (E) 20802 KENSINGTON BLVD, LAKEVILLE, MN 55044 PROJ. NO. 251944 ISSUE RECORD POST LAKEVILLE - EAST PARKING EXPANSION CONSULTANTS OWNER KEY PLAN PROJECT INFORMATION REGISTRATION NO. laws of the State of Minnesota and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision 02.06.2026 REVIEW SETA NOT FOR CONSTRUCTION ISSUED FOR REVIEW 02.13.2026 ISSUED FOR DDB RYAN A+E, INC. 533 South Third Street, Suite 100 Minneapolis, MN 55415 612-492-4000 tel 612-492-3000 fax WWW.RYANCOMPANIES.COM 04.24.2026C REVIEW SET 06.10.2026D CITY REVISIONS C201 SITE, PAVING AND UTILITY PLAN NORTH 0 30'60'90' 1"=30' SITE, PAVING AND UTILITY PLAN C201 1 1.ALL EXISTING INFORMATION TAKEN FROM SURVEY BY JACOBSON ENGINEERS & SURVEYORS, DATED AUGUST 21, 2012 AND DESIGN WORK FROM PREVIOUS PROJECTS IS REFLECTED IN AREAS OUTSIDE THE PROJECT LIMITS. BACKGROUND SURVEY ON THESE DRAWINGS IS FOR REFERENCE ONLY. 2.SUBSURFACE GEOTECHNICAL INVESTIGATION BY AMERICAN ENGINEERING TEST, INC, PROJECT NUMBER 22-01845, DATED DECEMBER 21, 2012. FURTHER GEOTECHNICAL EXPLORATION BY BRAUN INTERTEC IS IN PROGRESS. 3.CONTRACTOR TO FIELD VERIFY ALL EXISTING CONDITIONS INCLUDING LOCATIONS OF EXISTING PUBLIC AND PRIVATE UTILITIES, AND NOTIFY ENGINEER OF ANY DISCREPANCIES PRIOR TO STARTING CONSTRUCTION. 4.ALL EXISTING UTILITIES AND OTHER IMPROVEMENTS ARE TO REMAIN UNLESS NOTED OTHERWISE. 5.CONTRACTOR TO KEEP FROM DAMAGE ALL EXISTING IMPROVEMENTS, LANDSCAPING, STRUCTURES AND UTILITIES THAT ARE TO REMAIN. CONTRACTOR TO REPAIR ANY DAMAGE AT OWN EXPENSE. 6.ALL WORK TO CONFORM WITH CITY OF LAKEVILLE AND STATE OF MINNESOTA STANDARDS AND REGULATIONS. 7.ALL EXCAVATIONS MUST COMPLY WITH THE REQUIREMENTS OF OSHA 29 CFR, PART 1926, SUBPART P "EXCAVATIONS AND TRENCHES". THIS DOCUMENT STATES THAT EXCAVATION SAFETY IS THE SOLE RESPONSIBILITY OF THE CONTRACTOR. 8.PROVIDE TRAFFIC CONTROL AT STREETS AND SIDEWALKS PER CITY OF LAKEVILLE AND MUTCD REQUIREMENTS. AS REQUIRED; TRAFFIC CONTROL DESIGN, RELATED PERMITTING, AND DRAWINGS SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR. 9.ANY WORK PERFORMED OUTSIDE THE PROPERTY BOUNDARIES MUST BE APPROVED BY OWNER AND ALL REGULATING GOVERNMENT AGENCIES AND APPROPRIATE PERMITS MUST BE OBTAINED. 10.CONTRACTOR'S SURVEYOR SHALL RESET PERMANENT MONUMENTS AT LOCATIONS OF ALL FOUND MONUMENTS THAT ARE DISTURBED BY CONSTRUCTION AT NO COST TO OWNER. CONTRACTOR'S SURVEYOR SHALL PREPARE A MONUMENT PRESERVATION CERTIFICATE IN ACCORDANCE WITH STATE LAW. GENERAL NOTES 1.ALL UTILITY DEMOLITION AND/OR ABANDONMENT TO BE PERFORMED IN ACCORDANCE WITH CITY OF LAKEVILLE AND STATE OF MINNESOTA REGULATIONS AND STANDARDS. 2.EXISTING UTILITIES ARE SHOWN IN THEIR APPROXIMATE LOCATIONS. CONTRACTOR TO FIELD VERIFY THE LOCATION OF ALL EXISTING PUBLIC AND PRIVATE UTILITIES WHICH MAY INCLUDE BUT IS NOT LIMITED TO: ELECTRIC, TELEPHONE, GAS, CABLE TV, COMPUTER CABLE, FIBER OPTIC CABLE, SANITARY SEWER, STORM SEWER AND WATERMAIN. CONTRACTOR TO CONTACT 811 BEFORE EXCAVATING. 3.PROVIDE THE FOLLOWING MINIMUM COVER OVER THE TOP OF PIPE AS FOLLOWS: A.7.5' OVER WATERMAIN B.8' OVER SANITARY SEWER C.1.5' OVER STORM SEWER UTILITY NOTESD D Page 192 of 420 Date: 7/20/2026 EB First Addition Final Plat Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution approving the EB First Addition final plat. Overview EB Development has prepared plans for a final plat for EB First Addition, which proposes one lot for the construction of 24 row-style townhomes and a 142-unit apartment building on 8.25 acres located north of 210th Street (CSAH 70) and west of Keokuk Avenue. The City Council approved the preliminary plat and CUP for two principal buildings on a single lot, building height, and an exception to the exterior materials on October 3, 2024. After a change in the developer and a reduction in the number of units on the site, a revised CUP and ROW vacation were approved on June 15, 2026. City staff and the Developer are working though items and language within the development contract and stormwater maintenance agreement. The final plat approval is subject to those documents being approved by the City Council. Supporting Information 1. Final Plat Resolution 2. June 24, 2026 Planning & Engineering reports Financial Impact: $0 Budgeted: No Source: Envision Lakeville Community Values: A Home for All Ages and Stages of Life Report Completed by: Kris Jenson, Planning Manager Page 193 of 420 (Reserved for Dakota County Recording Information) CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 26-______ RESOLUTION APPROVING THE EB FIRST ADDITION FINAL PLAT WHEREAS, the owner of the property described as EB FIRST ADDITION has requested final plat approval; and WHEREAS, the preliminary plat was reviewed by the Planning Commission and the Parks, Recreation and Natural Resources Committee and approved by the City Council; and WHEREAS, the final plat is consistent with the preliminary plat; and WHEREAS, the final plat is acceptable to the City; NOW THEREFORE BE IT RESOLVED by the Lakeville City Council: 1. The EB FIRST ADDITION final plat is approved subject to City Council approval of the development contract, stormwater maintenance agreement and security requirements. 2. The Mayor and City Clerk are hereby authorized to execute the final plat mylars, development contract, and all other documents required pursuant to the development contract. 3. The City Clerk is directed to file a certified copy of this resolution with the Dakota County Recorder. ADOPTED by the Lakeville City Council this 20th day of July 2026. Page 194 of 420 2 CITY OF LAKEVILLE John Bermel, Acting Mayor ATTEST: _______________________ Taylor Snider, Deputy City Clerk STATE OF MINNESOTA ) CITY OF LAKEVILLE ) I hereby certify that the foregoing Resolution No. 26-____is a true and correct copy of the resolution presented to and adopted by the City Council of the City of Lakeville at a duly authorized meeting thereof held on the 20th day of July 2026 as shown by the minutes of said meeting in my possession. __________________________ Taylor Snider Deputy City Clerk (SEAL) Drafted By: City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Page 195 of 420 1 City of Lakeville Community Development Memorandum To: Tina Goodroad, Community Development Director From : Kris Jenson , Plann ing Manager D ate: June 24 , 20 2 6 S ubject : EB First Addition final plat Action Deadline: July 20 , 202 6 B ACKGROUND EB Lakeville Development LLC has submitted applications and plans for a final plat to be known as EB First Addition. The plat consists of one lot of 8.25 acres. The property is located north of 210 th Street (CSAH 70) and west of Keokuk Avenue. The preliminary plat was approved by the City Council o n O c t o b e r 2 1, 2024, along with a Conditional Use Permit for multiple principal buildings on one lot, to exceed the maximum building height in the RH -2 District, and for an exception to the exterior material requirements. At the June 4, 2026 meeting, the C ity Council approved an amendment to the CUP for multiple principal structures on one parcel and for the vacation of undeveloped 207th Street right of way. The plans have been reviewed by the Engineering, Environmental Resources, Forestry, and Parks and Recreation staff. E XHIBITS A. Location Map B. Final Plat C. Preliminary Plat D. April 9, 2026 Plat Commission letter P LANNING A NALYSIS Existing Conditions. The site is heavily wooded and includes a single -family home, which will be removed with development of the site. Access will be from 2 10 th Street; a private frontage road has been constructed along the south side Page 196 of 420 2 of the property to the east that will also provide access for th is site to Keokuk Avenue upon completion of the remaining segment just east of the Authentix Lakeville Second Addition plat boundary. Zoning. The zoning of the parcel is RH-2, Multiple Family Residential District. Multiple family structures and townhomes are permitted uses within the district. Outlots. There are no outlots within the EB First Addition final plat. Streets. The plat is directly adjacent to 210 th Street (CSAH 70) with access provided at the southeast corner of the property. A private frontage road was constructed in 2023 and provides access from this parcel to Keokuk Avenue. The Dakota County Plat Commission reviewed and approved the final plat at their April 8, 2026 meeting. Grading, Drainage and Utilities. The final plat includes grading, drainage, and erosion control plans, which are reviewed in the engineering report prepared by Chloe Anderson, Project Engineer and Mac Cafferty, Environmental Resources Manager. See the June 24, 2026 Engineering memo for additional information. The EB First Addition final plat must be recorded in conjunction with the Authentix Lakeville Second Addition final plat and the stormwater maintenance agreement for Outlot B of that plat. W etlands. A wetland delineation was approved for the site on September 4, 2024. A conservation easement over the wetland and the required buffer must be recorded with the final plat. See the June 24, 2026 Engineering report for additional information. Tree Inventory/Landscape Plan. Because the preliminary plat was approved in late 2024 under the previous tree inventory requirements, the site is not required to comply with the current tree preservation requirements. Measures to protect significant trees as identified must be in place prior to the start of tree removals or other work on site. Landscaping is proposed around the site and at the foundation of the apartment building and townhome units, with all landscaped areas having inground irrigation. A security of $163,620 must be provided with the final plat to guarantee the installation of landscaping on site. An as-planted landscape plan must be provided to the city prior to any landscape inspections taking place on site. Park Dedication. The park dedication will be satisfied by a cash contribution. The park dedication fee of $520,078 must be paid at the time of final plat. Page 197 of 420 3 R ECOMMENDATION Community Development Department staff recommends approval of the EB First Addition final plat , subject to the following stipulations : 1. Implementation of the recommendations listed in the June 24 , 20 2 6 engineering report. 2. A security of $16 3,6 2 0 is required to be submitted with the final plat to guarantee installation of the landscaping. 3. An as-planted landscape plan must be submitted to the city prior to any landscape inspections taking place. 4. Park dedication fee of $520,078 must be paid at the time of final plat. 5. The EB First Addition final plat must be recorded in conjunction with the Authentix Lakeville Second Addition final plat and stormwater maintenance agreement for Outlot B of said plat. Page 198 of 420 ± 207TH ST KE O K U K A V E KESWICK LOOP City of Lakeville Location Map EB First Addition Subject Property EXHIBIT A 210TH ST (CSAH 70) Page 199 of 420 C.S.A.H. NO. 70 (210TH STREET) FND IP 17255 FND 5/8" IP LOT 1 BLOCK 1 FND IP 47481 DAKOTA CO. ROW CAP KNOW ALL PERSONS BY THESE PRESENTS: That EB Lakeville Development LLC, a Minnesota limited liability company, fee owner of the following described property: The South 661.26 feet of the East 1/2 of the West 1/2 of the Southeast 1/4 of Section 26, Township 114, Range 21, according to the U.S. Government Survey thereof, Dakota County, Minnesota. Has caused the same to be surveyed and platted as EB FIRST ADDITION and does hereby dedicate to the public for public use the public ways and drainage and utility easements as created by this plat. In witness whereof said EB Lakeville Development LLC, a Minnesota limited liability company has caused these presents to be signed by its proper officer this _______ day of _________________, 20______. EB Lakeville Development LLC By: STATE OF COUNTY OF This instrument was acknowledged before me this day of , 20 , by as of EB Lakeville Development LLC, a Minnesota limited liability company Notary Public, County, Notary Printed Name My Commission Expires I, Glen A. Mullenbach do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.1, Subd. 3, as of the date of this certificate are shown and labeled on this plat; and all public ways are shown and labeled on this plat. Dated this day of , 20 Glen A. Mullenbach, Licensed Land Surveyor, Minnesota License No. 47470 STATE OF MINNESOTA COUNTY OF This instrument was acknowledged before me this day of , 20 , by Glen A. Mullenbach Notary Public, County, Minnesota Notary Printed Name My Commission Expires CITY COUNCIL, CITY OF LAKEVILLE, COUNTY OF DAKOTA, STATE OF MINNESOTA This plat was approved by the City Council of Lakeville, Minnesota this day of , 20 , and hereby certifies compliance with all requirements as set forth in Minnesota Statues, Section 505.03, Subd. 2. By: By: Mayor Clerk EB FIRST ADDITION ENGINEERING, PLANNING AND LAND SURVEYING SAMBATEK, INC. SHEET 1 OF 1 COUNTY SURVEYOR, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approved this day of , 20 . By: Todd B. Tollefson, Dakota County Surveyor COUNTY BOARD, COUNTY OF DAKOTA, STATE OF MINNESOTA We do hereby certify that on the , the Board of Commissioners of Dakota County, Minnesota approved this plat of EB FIRST ADDITION , and said plat is in compliance with the provisions of Minnesota Statutes, Section 503.03 Subd. 2 and pursuant to the Dakota County Contiguous Plat Ordinance. By: Attest: Chair, Dakota County Board Dakota County Treasurer – Auditor DEPARTMENT OF PROPERTY TAXATION AND RECORDS, COUNTY OF DAKOTA, STATE OF MINNESOTA Pursuant to Minnesota Statutes, Section 505.021, Subd. 9, taxes payable in the year 20 on the land hereinbefore described have been paid. Also pursuant to Minnesota Statutes, Section 272.12, there are no delinquent taxes and transfer entered this day of , 20 . By: Amy A. Koethe, Director, Department of Property Taxation and Records COUNTY RECORDER, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that this plat of EB FIRST ADDITION was filed in the office of the County Recorder for public record on this day of, 20 , at o'clock .M., and was duly filed in Book of Plats, Page as Document Number . By: Amy A. Koethe, County Recorder 0 NORTH SCALE IN FEET 50 100 BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING LOT LINES, AND BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING PUBLIC WAYS, AS SHOWN ON THIS PLAT. 10 10 10 10 DENOTES DAKOTA COUNTY SECTION CORNER MONUMENTATION DENOTES 1/2 INCH BY 16 INCH IRON PIPE SET AND MARKED BY LICENSE NO. 47470, UNLESS OTHERWISE NOTED. DENOTES 1/2 INCH IRON PIPE MONUMENT FOUND UNLESS OTHERWISE NOTED DENOTES DAKOTA COUNTY ROW MONUMENT DENOTES RESTRICTED ACCESS THE EAST LINE OF THE EAST 1/2 OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF SEC. 26, T114N, R21W IS ASSUMED TO HAVE A BEARING OF SOUTH 00 DEGREES 02 MINUTES 35 SECONDS WEST DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS: (NOT TO SCALE) VICINITY MAP SECTION 26, TOWNSHIP 114N, RANGE 21W, DAKOTA COUNTY, MINNESOTA NOT TO SCALE SITE 210TH ST (C.S.A.H. 70) EXHIBIT B Page 200 of 420 DAKOTA COUNTY RD R.O.W. MAP 300 & 300A C.S.A.H. NO. 70 (210TH STREET) FND IP 17255 FND IP LOT 1 BLOCK 1 OUTLOT A NO DATE BY CKD APPR SHEET OF Date License # Print Name: DRAWN BY DESIGNED BY CHECKED BY I hereby certify that this plan, survey, or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota. PROJECT NO.REV. COMMENT Engineering | Surveying | Planning | Environmental© 2021 Sambatek24 . 1 S ( L M S T E C H ) | AL E A S T U T Z | 9/ 1 8 / 2 0 2 4 1 2 : 0 5 : 1 9 P M L: \ P R O J E C T S \ 5 2 9 0 8 \ C A D \ S U R V E Y \ S H E E T S \ 5 2 9 0 8 - P P L A T . D W G :C3 . 0 0 P R E L I M I N A R Y P L A T DATE ISSUED CROWN LMN, LLC CROWN LAKEVILLE APARTMENTS LAKEVILLE, MINNESOTA52908 04\26\2024 DJT MRS Mark R. Salo 07/01/2024 43933 SCALE IN FEET 0 10050 NORTH PRELIMINARY PLAT C3.00 1 THE SOUTH 661.26 FEET OF THE EAST 1/2 OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 26, TOWNSHIP 114,RANGE 21, DAKOTA COUNTY, MINNESOTA. OVERHEAD ELECTRICAL WIRE LIGHT SANITARY SEWER STORM SEWER WATERMAIN UNDERGROUND ELECTRIC GUY ANCHOR UTILITY POLE GUARD POST UNDERGROUND TELEPHONE UNDERGROUND GAS CHAIN LINK FENCE WOOD FENCE BUILDING LINE CONCRETE CURB BITUMINOUS SURFACE CONCRETE SURFACE WET LAND SIGN TRAFFIC MARKERS POND / WATER LINE FEMA FLOOD ZONE LINE SOIL BORING TREE LINE FOUND MONUMENT FOUND CAST IRON MONUMENT EASEMENT LINE SETBACK LINE RESTRICTED ACCESS FOUND RIGHT-OF-WAY MONUMENT SET MONUMENT MARKED LS 43933 SECTION LINE UNDERLYING / ADJACENT LOT TIE LINE BOUNDARY LINE DEED DISTANCE(100.00) CONIFEROUS TREE TRANSFORMER BUILDING CANOPY REGULAR PARKING STALL COUNTGAS METER COMMUNICATIONS MANHOLE ELECTRIC MANHOLE GAS MANHOLE ELECTRIC METER TELEPHONE PEDESTAL CABLE TV BOX GATE VALVE / HYDRANT SANITARY MANHOLE CLEAN OUT STORM MANHOLE STORM CATCH BASIN FLARED END SECTION SPOT ELEVATION CONTOUR RETAINING WALL BLOCK RETAINING WALL STONE RETAINING WALL RIGHT-OF-WAY LINE WIRE FENCE DECIDUOUS TREE ## TOTAL SITE AREA: LESS OUTLOTS: LESS RIGHT-OF-WAY: 432,853 S.F. (GROSS) 41,611 S.F. 72,043 S.F. 319,199 S.F. (NET) LOT 1, BL.OCK 1: OUTLOT A: 319,199 S.F. 41,611 S.F. PROPOSED DENSITY:14 UNITS PER ACRE (GROSS) 23 UNITS PER ACRE (NET) ZONE: RH-2 FRONT YARD: REAR YARD: SIDE YARD: 30' 30' 15' 1.ALL AREAS ARE ROUNDED TO THE NEAREST SQUARE FOOT. 2.STREET NAMES ARE SUBJECT TO APPROVAL BY THE CITY. 3.DRAINAGE AND UTILITY EASEMENTS SHALL BE PROVIDED AS REQUIRED. DRAINAGE AND UTILITY EASEMENTS WILL BE PROVIDED OVER ALL PUBLIC UTILITIES AND UP TO 1 FOOT ABOVE THE HIGH WATER LEVEL OF ALL PONDS. LEGEND DESCRIPTION PROPERTY SUMMARY LOT SUMMARY SITE DENSITY SITE SETBACKS DEVELOPMENT NOTES VICINITY MAP SITE 205TH ST W N.T.S. 35 70 210TH ST W KE O K U K A V E 1 07/01/2024 JJA MS REMOVED EAST PARCEL BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING LOT LINES AND RIGHT-OF-WAY LINES, AS SHOWN ON THIS PLAT. 10 10 10 10 EXHIBIT C Page 201 of 420 Dakota County Surveyor’s Office Western Service Center 14955 Galaxie Avenue Apple Valley, MN 55124 952.891-7087 Fax 952.891-7127 www.co.dakota.mn.us April 9, 2026 City of Lakeville 20195 Holyoke Ave. Lakeville, MN 55044 Re: EB FIRST ADDITION The Dakota County Plat Commission met on April 8, 2026, to consider the final plat of the above referenced plat. The plat is adjacent to CSAH 70 (210th St. W.) and is therefore subject to the Dakota County Contiguous Plat Ordinance. The proposed site includes a four-story apartment building and 24 townhomes with access at CSAH 70/Keswick Loop. The plat meets the future right-of-way needs along CSAH 70. As discussed, the county will soon be releasing part of Parcel 40 (207th Street) to the city as this future city connection will no longer be needed. The city will vacate that portion of 207th Street with the recording of the proposed plat. Restricted access should be shown along all of CSAH 70 except for one access opening. A quit claim deed to Dakota County for restricted access is required with the recording of the plat mylars. As noted, there is an existing cross access agreement for the frontage road along CSAH 70 to Keokuk Avenue, which will be needed for this proposed site when the Keswick Loop access is restricted in the future. The Plat Commission has approved the final plat provided that the described conditions are met and will recommend approval to the County Board of Commissioners meeting on May 5, 2026. Traffic volumes on CSAH 70 are 8,000 ADT and are anticipated to be 8,200 ADT by the year 2040. These traffic volumes indicate that current Minnesota noise standards for residential units could be exceeded for the proposed plat. Residential developments along County highways commonly result in noise complaints. In order for noise levels from the highway to meet acceptable levels for adjacent residential units, substantial building setbacks, buffer areas, and other noise mitigation elements should be incorporated into this development. No work shall commence in the County right of way until a permit is obtained from the County Transportation Department and no permit will be issued until the plat has been filed with the County Recorder’s Office. The Plat Commission does not review or approve the actual engineering design of proposed accesses or other improvements to be made in the right of way. Nothing herein is intended to restrict or limit Dakota County’s rights with regards to Dakota County rights of way or property. The Plat Commission highly recommends early contact with the Transportation Department to discuss the permitting process which reviews the design and may require construction of highway improvements, including, but not limited to, turn lanes, drainage features, limitations on intersecting street widths, medians, etc. EXHIBIT D Page 202 of 420 Please contact TJ Bentley regarding permitting questions at (952) 891-7115 or Todd Tollefson regarding Plat Commission or Plat Ordinance questions at (952) 891-7070. Sincerely, Todd B. Tollefson Secretary, Plat Commission c: Mark Anderson, Sambatek Page 203 of 420 City of Lakeville Public Works – Engineering Division Memorandum To: Kris Jenson, Planning Manager From: Chloe Anderson, Civil Engineer McKenzie L. Cafferty, Environmental Resources Manager Joe Masiarchin, Parks and Recreation Director Zach Jorgenson, City Forester Copy: Zach Johnson, City Engineer Jonathan Nelson, Assistant City Engineer Julie Stahl, Finance Director Dave Mathews, Building Official Tina Goodroad, Community Development Director Date: June 24, 2026 Subject: EB First Addition Final Plat Report • Site Plan Review • Grading and Erosion Control Plan Review • Utility Plan Review BBAACCKKGGRROOUUNNDD EB Lakeville Development, LLC has submitted a final plat named EB First Addition and plans for the construction of a 142-unit apartment complex and four 6-unit townhome buildings resulting in a total of 166 units on site. The request also includes the vacation of public right of way for 207th Street. The proposed development is located north of and adjacent to 210th Street (CSAH 70) and west of Keokuk Ave. The parent parcel consists of one metes and bounds parcel in Section 26, Township 114, Range 21 (PID No. 220260081010) zoned RH-2, Multiple Family Residential District. The final plat consists of one lot within one block on 9.94 acres. The proposed development will be completed by: Developer: EB Lakeville Development, LLC Engineer/Surveyor: Sambatek Page 204 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 22 OOFF 88 SSIITTEE CCOONNDDIITTIIOONNSS The EB First Addition site contains undeveloped land with one pre-existing homestead and an accessory building that will be demolished prior to site development. Security of $50,000 will be held for the demolition, sealing of existing well(s), and removal of septic system(s). There is an existing driveway and curb cut that shall be removed with the final plat. Security of $10,000 will be held for the removal of the driveway and curb cut. A wetland complex is located on the east side of the property. The land generally slopes from the west to the east. An overhead utility line is located adjacent to the south property line of the parent parcel. EEAASSEEMMEENNTTSS Several easements for highway, stormwater, and utility purposes exist across the parent parcel and will remain with the development improvements. A drainage and utility easement shall be established with the final plat encompassing the public trunk watermain through the site. A temporary grading easement is required to extend the trunk utilities to the western plat boundary. SSTTRREEEETT AANNDD SSUUBBDDIIVVIISSIIOONN LLAAYYOOUUTT 210th Street (CSAH 70) EB First Addition is located north of and adjacent to 210th Street, a Principal Arterial roadway as identified in the City’s Comprehensive Transportation Plan. The Dakota County Plat Commission reviewed the proposed development at its April 8, 2026 meeting and recommended approval. Dakota County controls the right-of-way requirements and access locations along 210th Street. The current Dakota County Plat Review Needs Map identifies 210th Street as a 4-lane divided roadway with a half right-of-way requirement of 75-feet adjacent to the development. The Developer is dedicating the necessary right-of-way for 210th Street with the EB First Addition final plat. RIGHT OF WAY VACATION Earlier this year, Dakota County conveyed the right of way for 207th Street, located at the southeast corner of the subject parcel, to the City’s jurisdiction so that it could be vacated in conjunction with the EB First Addition final plat. The future alignment of 207th Street has changed since 2006 when the 207th Street right of way was established by Dakota County in 2006. CCOONNSSTTRRUUCCTTIIOONN AACCCC EESSSS Construction traffic access and egress for grading, utility and street construction shall be determined with the final construction plans. Page 205 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 33 OOFF 88 PPAARRKKSS,, TTRRAAIILLSS AANNDD SSIIDD EEWWAALLKKSS The Park Dedication requirement has not been collected on the parent parcel and will be satisfied through a cash contribution to be paid with the final plat, calculated as follows: 166 units x $3,133.00 = $520,078.00 Total Units EB First Addition 2026 Unit Rate (High-Density) Park Dedication Fee EB First Addition UUTTIILLIITTIIEESS SSAANNIITTAARRYY SSEEWWEERR EB First Addition is located within sub-district SC-13440 of the South Creek sanitary sewer district as identified in the City’s Comprehensive Sewer Plan. The wastewater from the proposed site will be conveyed by City-owned sanitary sewer facilities to the Elko/New Market interceptor and then to the Empire Wastewater Treatment Plant. The existing City-owned downstream facilities are adequate to convey the wastewater generated by the proposed development. Private sanitary sewer service hookups were extended from the public sanitary sewer to the south side of the subject parcel for development of the property with the development of EB Lakeville units. The Sanitary Sewer Availability Charge has not been collected on the parent parcel and shall be paid with the building permit. WWAATTEERRMMAAIINN A service stub was provided with the development of EB Lakeville from the 12-inch watermain along 210th Street within the City’s Normal Pressure Zone. Public trunk watermain will be extended through the site in accordance with the City’s Comprehensive Water Plan. The Developer is eligible for a credit from the City for the oversizing of the trunk watermains in the development. The credit is based on the cost difference between 8-inch watermain and the oversized 12-inch watermain that will be installed, derived from estimates submitted by the Developer’s engineer on June 30th, 2025. The credit will be applied to the Developer’s final plat cash fees. Final locations and sizes of all sanitary sewer and watermain facilities will be reviewed by City staff with the final plat, building permit application and final construction plans. UUNNDDEERRGGRROOUUNNDDIINNGG Overhead electric service lines and poles are located along the north side of 210th Street on the parent parcel. The Developer is required to remove the poles and place the service utilities underground with the final plat, consistent with the City’s Public Ways and Property Ordinance. The developer shall provide a security with the final plat to ensure the work is completed and certified in accordance with all applicable codes and regulations. Page 206 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 44 OOFF 88 DDRRAAIINNAAGGEE AANNDD GGRRAADDIINNGG EB Lakeville Development is located within subdistrict ML-085 of the Lake Marion District of the City’s Comprehensive Water and Natural Resources Management Plan. This development will convey stormwater runoff towards a filtration basin located within adjacent parcel to the east to be constructed in conjunction with Authentix Lakeville Second Addition Final Plat. The final grading plan shall identify all fill lots in which the building footings will be placed on fill material. The grading specifications shall also indicate that all embankments meet FHA/HUD 79G specifications. The Developer shall certify to the City that all lots with footings placed on fill material are appropriately constructed. Building Certificates of Occupancy will not be issued until a soils report and an as-built certified grading plan have been submitted and approved by City staff. EB First Addition Development contains more than one acre of site disturbance. A National Pollution Discharge Elimination System General Stormwater Permit for construction activity is required from the Minnesota Pollution Control Agency for areas exceeding one acre being disturbed by grading. A copy of the Notice of Stormwater Permit Coverage must be submitted to the City upon receipt from the MPCA. SSTTOORRMM SSEEWWEERR EB First Addition includes the construction of private storm sewer systems to be located within Lot 1, Block 1 and will collect and convey stormwater runoff generated from within the development off-site to adjacent parcel located within Authentix Second Addition Final Plat. The Storm Sewer Charge has not been collected on the parent parcel and must be paid with the final plat, calculated as follows: Storm Sewer Charge Summary Gross Area of EB Lakeville First Addition 432,853.00 s.f. Less Area of CSAH 70 ROW Vacation (-) 72,080.00 s.f. Total Storm Sewer Charge Area (Multi-Family) = 360,773.00 s.f. 360,773.00 s.f. x $0.198/s.f. = $71,433.05 Net Area EB First Addition 2026 Unit Rate Storm Sewer Charge EB First Addition Final locations and sizes of all storm sewer facilities will be reviewed by City staff with the building permit application and final construction plans. FEMA FLOODPLAIN ANALYSIS Page 207 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 55 OOFF 88 EB First Addition Development is shown on the Flood Insurance Rate Map (FIRM) as Zone X by the Federal Emergency Management Agency (FEMA). Based on this designation by FEMA, the plat is not located within a Special Flood Hazard Area (SFHA). WWEETTLLAANNDDSS A wetland delineation report was reviewed in the field and was approved September 4, 2024. One wetland was identified on the site. The project is proposing to impact 1,652 square feet of wetland. The project is eligible for the de minimis exemption based on the information provided and the wetland de minimis application for the areas outlined in the report have been determined to be acceptable for use in implementing the Wetland Conservation Act. The wetland and required buffer will be placed in a conservation easement to be dedicated with the final plat. Natural area signs will be placed along the easement that contains the wetland and wetland buffer. Final locations of signs will be determined with final plat. The plan must be revised to reduce impacts to the wetland buffer prior to final plat. TTRREEEE PPRREESSEERRVVAATTIIOONN The plan identifies 519 total trees on site and proposes to save 36 trees. Measures to protect significant trees as identified in the Tree Preservation ordinance including but not limited to tree protection fencing and erosion control measures, are to be installed prior to the start of tree removals or other site work and maintained throughout construction. Minor changes may result in additional removals or saves based on location or condition of the tree. The tree preservation plan was approved following the previous Tree Preservation Ordinance, 10-4-11. All “save” trees that are damaged or removed will require replacement at a ratio of 2:1 as per the Lakeville Subdivision Ordinance. EERROOSSIIOONN CCOONNTTRROOLL The Developer is responsible for obtaining a MPCA Construction Permit for the site as well as maintaining the SWPPP for the site during construction. The permit requires that any changes made throughout construction must be documented in the SWPPP. The developer is responsible for establishment of all slopes adjacent to the wetland and buffer. The area will be established with native vegetation. Additional erosion control measures may be required during construction as deemed necessary by City staff. Any additional measures required shall be installed and maintained by the developer. The MS4 Administration Fee has not been collected on the parent parcel and must be paid with the final plat, calculated as follows: $506,350.00 x 2% = $10,127.00 Project Grading Cost EB First Addition MS4 Admin Fee MS4 Admin Fee Required EB First Addition Page 208 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 66 OOFF 88 SECURITIES The Developer shall provide a Letter of Credit as security for the Developer-installed improvements relating to Authentix Lakeville Second Addition. Construction costs are based upon estimates submitted by the Developer’s engineer on July 15th, 2026. CONSTRUCTION COSTS Sanitary Sewer $108,930.00 Watermain 94,480.00 Storm Sewer 142,200.00 Grading, Drainage, Erosion Control and Restoration 521,300.00 SUBTOTAL - CONSTRUCTION COSTS $ 866,910.00 OTHER COSTS Developer’s Design (3.0%) $ 26,007.30 Developer’s Construction Survey (2.5%) 21,672.75 City’s Legal Expense (0.5%) 4,334.55 City Construction Observation (5.0%) 43,345.50 Developer’s Record Drawing (0.5%) 4,334.55 Streetlights 1,400.00 Demolition, Well Sealing, Septic System Removal 50,000.00 Driveway Removal and Reestablishment 10,000.00 Undergrounding 163,520.16 Natural Area Signs 2,000.00 Landscaping 163,620.00 Lot Corners/Iron Monuments 100.00 SUBTOTAL - OTHER COSTS $490,334.81 TOTAL PROJECT SECURITY $1,357,244.81 The street light security totals $1,400 which consists of one (1) mast-arm streetlight at $1,400 each. The Developer shall post a security to ensure the final placement of iron monuments at property corners with the final plat. The security is $100.00 per lot and outlot for a total of $100.00. The City shall hold this security until the Developer’s Land Surveyor certifies that all irons have been placed following site grading, street and utility construction. CASH FEES A cash fee for one-year of streetlight operating expenses shall be paid at the time of final plat approval and is calculated as follows: Page 209 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 77 OOFF 88 655.01 ft. x $0.2974/front foot/qtr x 4 qtrs/yr = $779.20 Front Footage EB First Addition 2026 Streetlight Operating Fee Total EB First Addition A cash fee for one-year of environmental resources management expenses shall be paid with the final plat and is calculated as follows: 24 unit x $64.00/unit x 0.50 = $768.00 Total Townhome Units EB First Addition 2026 Rate Utility Factor Environmental Resources Fee EB First Addition (Townhome) 142 unit x $64.00/unit x 0.25 = $2,272.00 Total Apartment Units EB First Addition 2026 Rate Utility Factor Environmental Resources Fee EB First Addition (Apartment) $768.00 + $2,272.00 = $3,040.00 Environmental Resources Fee EB First Addition (Townhome) Environmental Resources Fee EB First Addition (Apartment) Environmental Resources Fee EB First Addition A cash fee for the preparation of addressing, property data, record construction drawings and for updating the City base map shall be paid at the time of final plat approval and is calculated as follows: 1 unit x $90.00/unit = $90.00 Lots/Outlots Property Data & Asset/Infrastructure Mgmt Fee Total The Developer shall submit the final plat and construction drawings in an electronic format. The electronic format shall be in .pdf and either .dwg/.dxf or .shx format. The Developer shall also pay a cash fee for City Engineering Administration. The fee for City Engineering Administration will be based on three percent (3.00%) of the estimated construction cost, or $41,700.00. CASH REQUIREMENTS Park Dedication $520,078.00 Storm Sewer Charge 71,433.05 Streetlight Operating Fee 779.20 Environmental Resources Management Fee 3,040.00 MS4 Administration Fee 10,127.00 Property Data & Asset/Infrastructure Mgmt Fee 90.00 City Engineering Administration (3.00%) 26,007.30 SUBTOTAL - CASH REQUIREMENTS $631,554.55 CREDITS TO CASH REQUIREMENTS Trunk Watermain Oversizing Credit $ 37,810.00 Page 210 of 420 EEBB FFIIRRSSTT AADDDDIITTIIOONN FFIINNAALL PPLLAATT RREEPPOORRTT JJUUNNEE 2244,, 22002266 PPAAGGEE 88 OOFF 88 SUBTOTAL – CREDITS TO CASH REQUIREMENTS 37,810.00 TOTAL CASH REQUIREMENTS $ 593,744.55 RREECCOOMMMMEENNDDAATTIIOO NN Engineering recommends approval of the, site plan, grading and erosion control plan, and utility plan for EB First Addition, subject to the requirements and stipulations within this report. Page 211 of 420 Date: 7/20/2026 Authentix Lakeville Second Addition Final Plat Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution approving the Authentix Lakeville Second Addition final plat. Overview EB Development has prepared plans for a final plat for Authentix Lakeville Second Addition, which proposes three outlots, one of which will include a stormwater pond for the EB First Addition development, directly west of Authentix Lakeville Second Addition plat. The property is located north of 210th Street (CSAH 70) and west of Keokuk Avenue. The City Council approved the preliminary plat on June 15, 2026. Aside from the stormwater pond, one outlot with wetlands will be deeded to the city and the third outlot will be retained by the property owner for future development. City staff and the Developer are working though items and language within the development contract and stormwater maintenance agreement. The final plat approval is subject to those documents being approved by the City Council. Supporting Information 1. Final Plat Resolution 2. June 18, 2026 Planning and Engineering reports Financial Impact: $0 Budgeted: No Source: Envision Lakeville Community Values: A Home for All Ages and Stages of Life Report Completed by: Kris Jenson, Planning Manager Page 212 of 420 (Reserved for Dakota County Recording Information) CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION NO. 26-______ RESOLUTION APPROVING THE AUTHENTIX LAKEVILLE SECOND ADDITION FINAL PLAT WHEREAS, the owner of the property described as AUTHENTIX LAKEVILLE SECOND ADDITION has requested final plat approval; and WHEREAS, the preliminary plat was reviewed by the Planning Commission and approved by the City Council; and WHEREAS, the final plat is consistent with the preliminary plat; and WHEREAS, the final plat is acceptable to the City; NOW THEREFORE BE IT RESOLVED by the Lakeville City Council: 1. The AUTHENTIX LAKEVILLE SECOND ADDITION final plat is approved subject to City Council approval of the development contract, stormwater maintenance agreement and security requirements. 2. The Mayor and City Clerk are hereby authorized to sign the final plat mylars. 3. The City Clerk is directed to file a certified copy of this resolution with the Dakota County Recorder. ADOPTED by the Lakeville City Council this 20th day of July 2026. Page 213 of 420 2 CITY OF LAKEVILLE John Bermel, Acting Mayor ATTEST: _______________________ Taylor Snider, Deputy City Clerk STATE OF MINNESOTA ) CITY OF LAKEVILLE ) I hereby certify that the foregoing Resolution No. 26-____is a true and correct copy of the resolution presented to and adopted by the City Council of the City of Lakeville at a duly authorized meeting thereof held on the 20th day of July 2026 as shown by the minutes of said meeting in my possession. __________________________ Taylor Snider Deputy City Clerk (SEAL) Drafted By: City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Page 214 of 420 1 City of Lakeville Community Development Memorandum To: Tina Goodroad, Community Development Director From: Kris Jenson , Plann ing Manager D ate: J u n e 18 , 202 6 S ubject : Authentix Lakeville Second Addition Final Plat Action Deadline: July 20 , 202 6 B ACKGROUND EB Lakeville Development LLC has submitted a n application and plans for a final plat to be known as Authentix Lakeville Second Addition. The plat consists of three outlots totaling 7.25 acres. The property is located north of 2 10 th Street (CSAH 70) and west of Keokuk Avenue. The preliminary plat was approved by the City Council at the June 4, 2026 meeting. One of the outlots is proposed to be used as a stormwater pond for the adjoining EB First Addition development. The plans have been reviewed by the Engineering, Environmental Resources, Forestry, and Parks and Recreation staff. E XHIBITS A. Location Map B. Final Plat C. Preliminary Plat D. April 9, 2026 Dakota County Plat Commission letter P LANNING A NALYSIS Existing Conditions. The site is primarily undeveloped; a private frontage road has been constructed along the south side of the property that will provide access for the EB First Addition plat to Keokuk Avenue upon completion of the remaining segment just east of the Authentix Lakeville Second Addition plat boundary. Zoning. The zoning of the parcel is C-3, General Commercial District. Page 215 of 420 2 Outlo t s . The final plat of Authentix Lakeville Second Addition consists of t hree outlot s . Outlot A is 4.35 acres and will be retained by the property owner for future development. At the time of development, a preliminary plat will be required and the wetland and required buffers must be deeded to the City at the time the parcel is platted into lots and blocks. Outlot B is 1.21 acres and will be used to provide stormwater management for the EB First Addition development. A Stormwater Maintenance Agreement (SMA) is required to be approved by the City Council in conjunction with the final plat. Outlot C is 1.7 acres and contains a wetland and required buffers and will be deeded to the City with the final plat. Streets. The plat is directly adjacent to 210 th Street (CSAH 70), though direct access to 210 th Street from the parcels is restricted by Dakota County. A private frontage road was constructed in 2023 to provide access from this parcel to 2 10 th Street and Keokuk Avenue. The Dakota County Plat Commission reviewed and approved the preliminary and final plat at their April 8, 2026 meeting . Grading, Drainage and Utilities. The final plat includes grading, drainage, and erosion control plans, which are reviewed in the engineering report prepared by Chloe Anderson, Project Engineer and Mac Cafferty, Environmental Resources Manager. See the June 18, 2026 Engineering memo for additional information. W etlands. A wetland delineation was previously approved for the site but expired in 2025. A new delineation, which shows one wetland on site, has been reviewed and approved for the site. The wetland and buffer will be placed in an outlot and deeded to the City with the final plat. Tree Inventory/Landscape Plan. An inventory of the trees within Outlot B was completed and shows that there are 218 inches of significant trees, all of which is proposed to be removed. Per Section 11-21-11 of the Zoning Ordinance, the removal threshold is 70% or 152.6 inches due to the commercial zoning of the site. Per the calculation worksheet, 32.7 inches must be replaced on site. The landscape plan indicates that 14 H e r it a g e Birch and Swamp White Oak trees will be planted around the perimeter of the stormwater pond, providing 35 inches (14 trees at 2.5 inches each), to meet the required tree replacement. A security of $10,000 is required to be submitted with the final plat to guarantee installation of the landscaping . An as-planted landscape plan must be provided to the city prior to any landscape inspections taking place on site. Park Dedication . The Authentix Lakeville Second Addition plat boundary is at the edge of a neighborhood park service area that is primarily located south of CSAH 70. Cash in lieu park dedication fees can only be collected Page 216 of 420 3 when a parcel is platted into lots and blocks and therefore will not be collected with the Authentix Lakeville Second Addition final plat. R ECOMM ENDATION Community Development staff recommend s approval of the A uthentix Lakeville Second Addition final plat , subject to the following stipulations : 1. Implementation of the recommendations listed in the E ngineering report dated June 18 , 202 6 . 2. A security of $10,000 is required to be submitted with the final plat to guarantee installation of the landscaping. 3. An as-planted landscape plan must be submitted prior to any landscape inspections on site. 4. A stormwater maintenance agreement for Outlot B s hall be approved by the City Council in conjunction with the approval of the final plat. Page 217 of 420 207TH ST KE O K U K A V E KESWICK LOOP City of Lakeville Location Map Authentix Lakeville Second Addition Subject Property EXHIBIT A 210TH ST (CSAH 70) K E Y S T O N E A V E Page 218 of 420 OUTLOT B OUTLOT AOUTLOT C SAMBATEK, INC. ENGINEERING, PLANNING AND LAND SURVEYING DENOTES 1/2 INCH BY 14 INCH IRON MONUMENT SET AND MARKED BY LICENSE NO. 47470 DENOTES 1/2 INCH BY 14 INCH IRON MONUMENT FOUND AND MARKED BY LICENSE NO. 43933 0 NORTH SCALE IN FEET 50 100 THE SOUTH LINE OF OUTLOT A, AUTHENTIX LAKEVILLE IS ASSUMED TO HAVE A BEARING OF SOUTH 89 DEGREES 56 MINUTES 33 SECONDS EAST. SEC. 26, T. 114 N, R. 21 W VICINITY MAP NOT TO SCALE NOT TO SCALE SITE DENOTES RIGHT OF ACCESS CONVEYED TO DAKOTA COUNTY PER DOC. NO. 3565867 CSAH 70 207TH ST W WETLAND PER WETLAND DELINEATION REPORT BY WESTWOOD PS DATED 03/2026 AUTHENTIX LAKEVILLE SECOND ADDITION KNOW ALL PERSONS BY THESE PRESENTS: That Atlantic Funding LTD, a Florida limited company, owner of the following described property: Outlot A, AUTHENTIX LAKEVILLE, Dakota County, Minnesota. Has caused the same to be surveyed and platted as AUTHENTIX LAKEVILLE SECOND ADDITION and does hereby dedicate to the public for public use the drainage and utility easements as created by this plat. In witness whereof said Atlantic Funding LTD, a Florida limited company, has caused these presents to be signed by its proper officer this day of , 20 . Signed: Atlantic Funding LTD, a Florida limited company By: Its: STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 20 , by as of Atlantic Funding LTD, a Florida limited company, on behalf of the company. Notary Public, County, Notary Printed Name My Commission Expires I, Glen A. Mullenbach do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the date of this certification are shown and labeled on the plat; and all public ways are shown and labeled on this plat. Dated this day of , 20 . Glen A. Mullenbach, Licensed Land Surveyor, Minnesota License No. 47470 STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this _________ day of _________________, 20______, by Glen A. Mullenbach. Notary Public, County, Notary Printed Name My Commission Expires CITY COUNCIL, CITY OF LAKEVILLE, STATE OF MINNESOTA This plat of AUTHENTIX LAKEVILLE SECOND ADDITION was approved and accepted by the City Council of the City of Lakeville, Minnesota at a regular meeting thereof held this ______ day of _______________, 20_____, and said plat is in compliance with the provisions of Minnesota Statutes, Section 505.03, Subd. 2. By: Mayor By: Clerk COUNTY SURVEYOR, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approved this ________ day of ________________________, 20_____. By: Todd B. Tollefson, Dakota County Surveyor COUNTY BOARD, COUNTY OF DAKOTA, STATE OF MINNESOTA We do hereby certify that on the 9th day of August, 2022, the Board of Commissioners of Dakota County, Minnesota approved this plat of AUTHENTIX LAKEVILLE SECOND ADDITION, and said plat is in compliance with the provisions of Minnesota Statures, Section 505.03, Subd. 2 and pursuant to the Dakota County Contiguous Plat Ordinance. Chair, County Board County Treasurer-Auditor DEPARTMENT OF PROPERTY TAXATION AND RECORDS, COUNTY OF DAKOTA, STATE OF MINNESOTA Pursuant to Minnesota Statutes, Section 505.021, Subd. 9, taxes payable in the year 20_____ on the land hereinbefore described have been paid. Also, pursuant to Minnesota Statutes, Section 272.12, there are no delinquent taxes and transfer entered this _______ day of _________________, 20_____. Amy A. Koethe, Director, Department of Property Taxation and Records COUNTY RECORDER, COUNTY OF DAKOTA, STATE OF MINNESOTA I hereby certify that this plat of AUTHENTIX LAKEVILLE SECOND ADDITION was filed in the office of the County Recorder for public record on this _______ day of _______________, 20______, at ______ o'clock ____ .M., and was duly filed in Book________________ of Plats, Page___________ as Document Number . Amy A. Koethe, Dakota County Recorder EXHIBIT B Page 219 of 420 OUTLOT B OUTLOT AOUTLOT C SCALE IN FEET 0 10050 NORTH Outlot A, Authentix Lakeville, Dakota County, Minnesota. OVERHEAD ELECTRICAL WIRE LIGHT SANITARY SEWER STORM SEWER WATERMAIN UNDERGROUND ELECTRIC GUY ANCHOR UTILITY POLE GUARD POST UNDERGROUND TELEPHONE UNDERGROUND GAS CHAIN LINK FENCE WOOD FENCE BUILDING LINE CONCRETE CURB BITUMINOUS SURFACE CONCRETE SURFACE WET LAND SIGN TRAFFIC MARKERS POND / WATER LINE FEMA FLOOD ZONE LINE SOIL BORING TREE LINE FOUND MONUMENT FOUND CAST IRON MONUMENT EASEMENT LINE SETBACK LINE RESTRICTED ACCESS FOUND RIGHT-OF-WAY MONUMENT SET MONUMENT MARKED LS 43933 SECTION LINE UNDERLYING / ADJACENT LOT TIE LINE BOUNDARY LINE DEED DISTANCE(100.00) CONIFEROUS TREE TRANSFORMER BUILDING CANOPY REGULAR PARKING STALL COUNTGAS METER COMMUNICATIONS MANHOLE ELECTRIC MANHOLE GAS MANHOLE ELECTRIC METER TELEPHONE PEDESTAL CABLE TV BOX GATE VALVE / HYDRANT SANITARY MANHOLE CLEAN OUT STORM MANHOLE STORM CATCH BASIN FLARED END SECTION SPOT ELEVATION CONTOUR RETAINING WALL BLOCK RETAINING WALL STONE RETAINING WALL RIGHT-OF-WAY LINE WIRE FENCE DECIDUOUS TREE ## TOTAL SITE AREA:315,849 SF (GROSS) LESS OUTLOTS:315,849 SF LESS RIGHT-OF-WAY: 0 SF 0 SF (NET) OUTLOT A:189,442 SF (4.349 ACRES) OUTLOT B: 52,501 SF (1.205 ACRES) OUTLOT C: 73,906 SF (1.697 ACRES) PROPOSED DENSITY: N/A FRONT YARD: N/A REAR YARD: N/A SIDE YARD: N/A 1. ALL AREAS ARE ROUNDED TO THE NEAREST SQUARE FOOT. 2. STREET NAMES ARE SUBJECT TO APPROVAL BY THE CITY. 3. DRAINAGE AND UTILITY EASEMENTS SHALL BE PROVIDED AS REQUIRED. DRAINAGE AND UTILITY EASEMENTS WILL BE PROVIDED OVER ALL PUBLIC UTILITIES AND UP TO 1 FOOT ABOVE THE HIGH WATER LEVEL OF ALL PONDS. LEGEND DESCRIPTION PROPERTY SUMMARY LOT SUMMARY SITE DENSITY SITE SETBACKS DEVELOPMENT NOTES VICINITY MAP SITE 205TH ST W N.T.S. 35 70 210TH ST W K E O K U K A V E PRELIMINARY PLAT C3.01 9 30 4 NO DATE BY CKD APPR SHEET OF Date License # Print Name: DRAWN BY DESIGNED BY CHECKED BY I hereby certify that this plan, survey, or reportwas prepared by me or under my direct supervisionand that I am a duly Licensed Land Surveyor underthe laws of the State of Minnesota. PROJECT NO.REV. COMMENT Engineering | Surveying | Planning | Environmental© 2021 Sambatek24 . 1 S ( L M S T E C H ) | C H A N D L E R C I R R I C I O N E | 4 / 2 2 / 2 0 2 6 5 : 0 1 : 1 3 P M L: \ P R O J E C T S \ 5 4 1 4 9 \ C A D \ S U R V E Y \ 5 4 1 4 9 - P P L A T ( A U T H E N T I X ) . D W G : C 3 . 0 0 P R E L I M I N A R Y P L A T DATE ISSUED EB LAKEVILLE DEVELOPMENT, LLC AUTHENTIX LAKEVILLE 2ND ADDITION LAKEVILLE, MN54149 02/06/2026 GAM GAM Glen A. Mullenbach 02/06/2026 47470 4 04/23/2026 GAM GAM GAM CITY RESUBMITTAL EXHIBIT C Page 220 of 420 Dakota County Surveyor’s Office Western Service Center 14955 Galaxie Avenue Apple Valley, MN 55124 952.891-7087 Fax 952.891-7127 www.co.dakota.mn.us April 9, 2026 City of Lakeville 20195 Holyoke Ave. Lakeville, MN 55044 Re: AUTHENTIX LAKEVILLE SECOND ADDITION The Dakota County Plat Commission met on April 8, 2026, to consider the preliminary plat of the above referenced plat. The plat is adjacent to CSAH 70 (210th St. W.) and is therefore subject to the Dakota County Contiguous Plat Ordinance. This is a replat of Outlot A, AUTHENTIX LAKEVILLE, splitting into three outlots. Restricted access is shown along CSAH 70 per document no. 3565867 and the right-of-way requirements have been met. As noted, the 207th Street/CSAH 70 intersection is planned to be restricted in the future. The Plat Commission has approved the preliminary and final and will recommend approval to the County Board of Commissioners meeting on May 5, 2026. Traffic volumes on CSAH 70 are 8,000 ADT and are anticipated to be 8,200 ADT by the year 2040. These traffic volumes indicate that current Minnesota noise standards for residential units could be exceeded for the proposed plat. Residential developments along County highways commonly result in noise complaints. In order for noise levels from the highway to meet acceptable levels for adjacent residential units, substantial building setbacks, buffer areas, and other noise mitigation elements should be incorporated into this development. No work shall commence in the County right of way until a permit is obtained from the County Transportation Department and no permit will be issued until the plat has been filed with the County Recorder’s Office. The Plat Commission does not review or approve the actual engineering design of proposed accesses or other improvements to be made in the right of way. Nothing herein is intended to restrict or limit Dakota County’s rights with regards to Dakota County rights of way or property. The Plat Commission highly recommends early contact with the Transportation Department to discuss the permitting process which reviews the design and may require construction of highway improvements, including, but not limited to, turn lanes, drainage features, limitations on intersecting street widths, medians, etc. Please contact TJ Bentley regarding permitting questions at (952) 891-7115 or Todd Tollefson regarding Plat Commission or Plat Ordinance questions at (952) 891-7070. Sincerely, Todd B. Tollefson Secretary, Plat Commission c: Mark Anderson, Sambatek EXHIBIT D Page 221 of 420 City of Lakeville Public Works – Engineering Division Memorandum To: Kris Jenson, Planning Manager From: Chloe Anderson, Civil Engineer McKenzie L. Cafferty, Environmental Resources Manager Joe Masiarchin, Parks and Recreation Director Zach Jorgenson, City Forester Copy: Zach Johnson, City Engineer Jonathan Nelson, Assistant City Engineer Julie Stahl, Finance Director Dave Mathews, Building Official Tina Goodroad, Community Development Director Date: June 18, 2026 Subject: Authentix Lakeville Second Addition Final Plat Report • Site Plan Review • Grading and Erosion Control Plan Review • Utility Plan Review BBAACCKKGGRROOUUNNDD EB Lakeville Development, LLC has submitted a final plat named ‘Authentix Lakeville Second Addition’ and plans for the development of three outlots. The proposed development is located north of and adjacent to 210th Street (CSAH 70) and west of Keokuk Avenue. The parent parcel is Outlot A, Authentix Lakeville (PID No. 221197000010) and is zoned C-3, General Commercial District. The final plat consists of three outlots on 7.25 acres. The outlots created with the final plat shall have the following use: Outlot A: Future development; to be retained by the current property owner (4.35 acres) Outlot B: Stormwater management basin; to be retained by the current property owner (1.21 acres) Outlot C: Wetland and buffer; to be deeded to the City (1.70 acres) Page 222 of 420 AAUUTTHHEENNTTIIXX LLAAKKEEVVIILLLLEE SSEECCOONNDD AADDDDIITTIIOONN FFIINNAALL PPLLAATT JJUUNNEE 1188,, 22002266 PPAAGGEE 22 OOFF 66 The proposed development will be completed by: Developer: EB Lakeville Development, LLC Engineer/Surveyor: Sambatek SSIITTEE CCOO NN DDIITTIIOO NN SS The Authentix Lakeville Second Addition site contains undeveloped land with a wetland complex throughout a majority of the property. The land generally slopes from the west to the east. An overhead utility line is located adjacent to the south property line of the parent parcel. EEAASSEEMMEENNTTSS Multiple easements for drainage and utility purposes exist across the parent parcel and will remain with the development improvements. SSTTRREEEETT AANNDD SSUUBBDDIIVVIISSIIOONN LLAAYYOOUUTT 210th Street (CSAH 70) Authentix Lakeville Second Addition is located north of and adjacent to 210th Street, a Principal Arterial roadway as identified in the City’s Comprehensive Transportation Plan. The Dakota County Plat Commission reviewed the proposed development at its April 8, 2026 meeting and recommended approval. Dakota County controls the right-of-way requirements and access locations along 210th Street. The current Dakota County Plat Review Needs Map identifies 210th Street as a 4-lane divided roadway with a half right-of-way requirement of 75-feet adjacent to the development. CCOONNSSTTRRUUCCTTIIOONN AACCCCEESSSS Construction traffic access and egress for grading and utility construction shall be determined with the final construction plans. UUTTIILLIITTIIEESS OOVVEERRHHEEAADD LLIINNEESS An overhead electric transmission line and poles are located along the north side of 210th Street on the parent parcel. The Developer will be required to remove the poles and place the utilities underground with the final plat, consistent with the City’s Public Ways and Property Ordinance. The developer shall provide a security for their share of the costs to bury the overhead utility adjacent to the plat. DDRRAAIINNAAGGEE AANNDD GGRRAADDIINNGG Page 223 of 420 AAUUTTHHEENNTTIIXX LLAAKKEEVVIILLLLEE SSEECCOONNDD AADDDDIITTIIOONN FFIINNAALL PPLLAATT JJUUNNEE 1188,, 22002266 PPAAGGEE 33 OOFF 66 Authentix Lakeville Second Addition is located within subdistrict ML-085 of the Lake Marion District of the City’s Comprehensive Water and Natural Resources Management Plan. This development will convey stormwater runoff generated from EB First Addition final plat towards a filtration basin located within the development. The final grading plan shall identify all fill lots in which the building footings will be placed on fill material. The grading specifications shall also indicate that all embankments meet FHA/HUD 79G specifications. The Developer shall certify to the City that all lots with footings placed on fill material are appropriately constructed. Building Certificates of Occupancy will not be issued until a soils report and an as-built certified grading plan have been submitted and approved by City staff. The site contains more than one acre of site disturbance. A National Pollution Discharge Elimination System General Stormwater Permit for construction activity is required from the Minnesota Pollution Control Agency for areas exceeding one acre being disturbed by grading. A copy of the Notice of Stormwater Permit Coverage must be submitted to the City upon receipt from the MPCA. SSTTOORRMM SSEEWWEERR Authentix Lakeville Second Addition includes the construction of a filtration basin to be located within Outlot B and will collect and convey stormwater runoff generated from the off- site development to adjacent parcel to the west. An easement is required over the stormwater facilities within Outlot B for the benefit of Lot 1, Block 1, EB First Addition. A stormwater maintenance agreement is required for the stormwater facilities within Outlot B. The Storm Sewer Area Charge has not been collected on the parent parcel and must be paid with the final plat, calculated as follows: 126,407.00 s.f. x $0.250/s.f. = $31,601.75 Net Area of Authentix Lakeville Second Addition, Outlots B and C Area Charge Storm Sewer Area Charge Required With Authentix Lakeville Second Addition, Outlots B and C Final locations and sizes of all storm sewer facilities will be reviewed by City staff with the building permit application and final construction plans. A Storm Sewer Area Charge for Outlot A will be collected with subsequent phases of the Authentix Lakeville preliminary plat at the time they are final platted into lots and blocks, at the rate in effect at the time of final plat approval. Following completion of the site improvement and restoration, the Developer shall conduct two double ring infiltrometer tests per ASTM D3385 standard in the location of the infiltration basin to demonstrate that the design infiltration rates have been achieved. The developer shall provide a security of $5,000 with the final plat to ensure that this testing is completed. Page 224 of 420 AAUUTTHHEENNTTIIXX LLAAKKEEVVIILLLLEE SSEECCOONNDD AADDDDIITTIIOONN FFIINNAALL PPLLAATT JJUUNNEE 1188,, 22002266 PPAAGGEE 44 OOFF 66 FEMA FLOODPLAIN ANALYSIS Authentix Lakeville Second Addition is shown on the Flood Insurance Rate Map (FIRM) as Zone X by the Federal Emergency Management Agency (FEMA). Based on this designation by FEMA, the plat is not located within a Special Flood Hazard Area (SFHA). WWEETTLLAANNDDSS A wetland delineation report was reviewed in the field and was approved. One wetland was identified on the site. The project is not proposing to impact the wetland. The wetland and required buffer will be placed in an outlot dedicated to the City. Natural area signs will be placed along the easement that contains the wetland and wetland buffer. Final locations of signs will be reviewed by City staff prior to installation. A portion of the wetland buffer is being graded. The developer is responsible for the establishment of the wetland buffer to native vegetation. This will require a minimum of 3 years of active management. TTRREEEE PPRREESSEERRVVAATT II OONN The Tree Preservation Plan submitted with the Authentix Lakeville 2nd Addition preliminary plat for Outlot B dated 4/23/2026 identifies 218 inches of significant trees located with the project boundaries. As a Mixed Use, Commercial, Industrial, or Special District, the tree removal threshold is 70%, or 152.6 inches. Plans propose to remove all 218 diameter inches, which is above the threshold, and requires the replacement of 32.7 diameter inches of new tree planting. The proposed landscape plan dated 4/23/2026 meets this requirement with 35 inches of new trees. All trees identified for preservation shall be protected with appropriate tree protection fencing and measures installed prior to, and maintained throughout, construction. Any trees to be preserved that are damaged or removed during construction will require replacement in accordance with the Tree Preservation Ordinance (11-21-11). EERROOSSIIOONN CCOONNTTRROOLL The Developer is responsible for obtaining a MPCA Construction Permit for the site as well as maintaining the SWPPP for the site during construction. The SWPPP must be submitted and approved by the City prior any site work. The permit requires that any changes made throughout construction must be documented in the SWPPP. The developer is responsible for establishment of all slopes adjacent to the wetland and buffer. The area will be established with native vegetation. Additional erosion control measures may be required during construction as deemed necessary by City staff. Any additional measures required shall be installed and maintained by the developer. The MS4 Administration Fee has not been collected on the parent parcel and must be paid with the final plat, calculated as follows: Page 225 of 420 AAUUTTHHEENNTTIIXX LLAAKKEEVVIILLLLEE SSEECCOONNDD AADDDDIITTIIOONN FFIINNAALL PPLLAATT JJUUNNEE 1188,, 22002266 PPAAGGEE 55 OOFF 66 $51,150.00 x 2% = $1,023.00 Project Grading Cost of Authentix Lakeville Second Addition MS4 Admin Fee MS4 Admin Fee Required With Authentix Lakeville Second Addition SECURITIES The Developer shall provide a Letter of Credit as security for the Developer-installed improvements relating to Authentix Lakeville Second Addition. Construction costs are based upon estimates submitted by the Developer’s engineer on July 15th, 2026. CONSTRUCTION COSTS Storm Sewer $ 43,900.00 Grading, Drainage, Erosion Control and Restoration 55,830.00 SUBTOTAL - CONSTRUCTION COSTS $ 99,730.00 OTHER COSTS Developer’s Design (3.0%) $ 2,991.90 Developer’s Construction Survey (2.5%) 2,493.25 City’s Legal Expense (0.5%) 498.65 City Construction Observation (5.0%) 4,986.50 Developer’s Record Drawing (0.5%) 498.65 Native Seeding in Outlot C and Wetland Buffers 30,000.00 Double Ring Testing in Filtration Basin 5,000.00 Undergrounding 18,395.24 Natural Area Signs 2,000.00 Landscaping 7,730.00 Lot Corners/Iron Monuments 300.00 SUBTOTAL - OTHER COSTS $74,894.19 TOTAL PROJECT SECURITY $174,624.19 The Developer shall post a security to ensure the final placement of iron monuments at property corners with the final plat. The security is $100.00 per lot and outlot for a total of $300.00. The City shall hold this security until the Developer’s Land Surveyor certifies that all irons have been placed following site grading, street and utility construction. CASH FEES A cash fee for one-year of streetlight operating expenses shall be paid for Outlot A with subsequent phases of the plat area at the time it is final platted into lots and blocks, at the rate in effect at the time of final plat approval. Page 226 of 420 AAUUTTHHEENNTTIIXX LLAAKKEEVVIILLLLEE SSEECCOONNDD AADDDDIITTIIOONN FFIINNAALL PPLLAATT JJUUNNEE 1188,, 22002266 PPAAGGEE 66 OOFF 66 A cash fee for one-year of environmental resources management expenses shall be paid for Outlot A with subsequent phases of the plat area at the time it is final platted into lots and blocks, at the rate in effect at the time of final plat approval. A cash fee for the preparation of addressing, property data, record construction drawings and for updating the City base map shall be paid at the time of final plat approval and is calculated as follows: 3 units x $90.00/unit = $270.00 Lots/Outlots Property Data & Asset/Infrastructure Mgmt Fee Total The Developer shall submit the final plat and construction drawings in an electronic format. The electronic format shall be in .pdf and either .dwg/.dxf or .shx format. The Developer shall also pay a cash fee for City Engineering Administration. The fee for City Engineering Administration will be based on three percent (3.00%) of the estimated construction cost, or $2,991.90. CASH REQUIREMENTS Storm Sewer Area Charge $31,601.75 MS4 Administration Fee 1,023.00 Property Data & Asset/Infrastructure Mgmt Fee 270.00 City Engineering Administration (3.00%) 2,991.90 TOTAL - CASH REQUIREMENTS $35,886.65 RREECCOOMMMMEENNDDAATTIIOONN Engineering recommends approval of the final plat, site plan, grading and erosion control plan, and utility plan for Authentix Lakeville Second Addition subject to the requirements and stipulations within this report. Page 227 of 420 Date: 7/20/2026 Acknowledge 2025 Annual Comprehensive Annual Report Proposed Action Staff recommends adoption of the following motion: Move to acknowledge receipt of City of Lakeville Annual Comprehensive Financial Report for the Year Ended December 31, 2025. Overview Final copies of the City of Lakeville Annual Comprehensive Financial Report (ACFR) for the Year Ended December 31, 2025 and auditor communications are attached for City Council review and formal approval. The certified public accounting firm of Abdo Solutions has audited the financial report. In their opinion, the financial statements fairly present the financial position of City of Lakeville as of December 31, 2025 and the results of its operations for the year then ended. Mr. Tyler See (Senior Audit Manager) will present an overview at the July 20th Council meeting. An overview of the financial operations is provided in the Letter of Transmittal and Management’s Discussion and Analysis. The 2025 Annual Comprehensive Financial Report was submitted to both the Minnesota State Auditor’s Office and the Government Finance Officers Association (for the Certificate of Achievement in Excellence in Financial Reporting Award) by the deadline of June 30, 2026. Following formal Council approval, the report will also be made available on the City website. Supporting Information 1. 2025 Annual Comprehensive Financial Report 2. 2025 Executive Governance Summary 3. 2025 Other Required Reports Financial Impact: $ 0 Budgeted: No Source: Envision Lakeville Community Values: Good Value for Public Service Report Completed by: Julie Stahl, Finance Director Page 228 of 420 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT çƺƏȸCvȇƳƺƳCnƺƬƺȅƫƺȸCבًCאאד City of Lakeville, Minnesota Page 229 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 2 Page 230 of 420 CITY OF LAKEVILLE LAKEVILLE, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2025 PREPARED BY: FINANCE DEPARTMENT GFOA Member of U.S. and Canada Published June 26, 2026 3 Page 231 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 4 Page 232 of 420 City of Lakeville, Minnesota Annual Comprehensive Financial Report Table of Contents For the Year Ended December 31, 2025 Page No. Introductory Section Letter of Transmittal 11 Elected and Appointed Officials 22 Organizational Chart 23 Certificate of Achievement for Excellence in Financial Reporting 24 Financial Section Independent Auditor’s Report 27 Management’s Discussion and Analysis 31 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 45 Statement of Activities 46 Fund Financial Statements Governmental Funds Balance Sheet 50 Reconciliation of the Balance Sheet to the Statement of Net Position 51 Statement of Revenues, Expenditures, and Changes in Fund Balances 52 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 53 Proprietary Funds Statement of Net Position 54 Statement of Revenues, Expenses, and Changes in Net Position 57 Statement of Cash Flows 58 Fiduciary Funds Statement of Fiduciary Net Position – Custodial Fund 60 Statement of Changes in Fiduciary Net Position – Custodial Fund 61 Notes to the Financial Statements 63 Required Supplementary Information Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - General Employees Retirement Fund 108 Schedule of Employer’s Public Employees Retirement Association Contributions - General Employees Retirement Fund 108 Notes to the Required Supplementary Information - General Employees Retirement Fund 109 Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Fund 111 Schedule of Employer’s Public Employees Retirement Association Contributions - Public Employees Police and Fire Fund 111 Notes to the Required Supplementary Information - Public Employees Police and Fire Fund 112 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 114 Notes to the Required Supplementary Information - Fire Relief Association 116 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 118 Budgetary Comparison Schedules General Fund 120 Notes to the Required Supplementary Information - Budgetary Reporting 121 5 Page 233 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 6 Page 234 of 420 City of Lakeville, Minnesota Annual Comprehensive Financial Report Table of Contents (Continued) For the Year Ended December 31, 2025 Combining and Individual Fund Financial Statements and Schedules General Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 126 Nonmajor Special Revenue Funds Combining Balance Sheet 132 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 133 Proprietary Funds – Internal Service Funds Internal Service Funds - Combining Balance Sheet 136 Internal Service Funds – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 137 Communications Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 138 Opioid Settlement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 139 Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 140 Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 141 Statistical Section (Unaudited) Financial Trends Net Position by Component 1 146 Changes in Net Position 2 148 Fund Balances of Governmental Funds 3 152 Changes in Fund Balances of Governmental Funds 4 154 Revenue Capacity Tax Capacity Valuation and Assessor’s Taxable Market Value of Taxable Property 5 156 Property Tax Rates 6 158 Principal Property Taxpayers 7 160 Property Tax Levies and Tax Collections 8 161 Debt Capacity Ratios of Outstanding Debt by Type 9 162 Ratios of Net General Bonded Debt Outstanding 10 164 Computation of Direct and Overlapping Debt 11 165 Legal Debt Margin 12 166 Pledged Revenue Coverage 13 167 Demographic and Economic Information Demographic and Economic Statistics 14 168 Principal Employers 15 169 Operating Information Employees by Function/Program (Full-Time Equivalent) 16 170 Operating Indicators by Function 17 172 Capital Asset Statistics by Function 18 174 7 Page 235 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 8 Page 236 of 420 INTRODUCTORY SECTION CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 9 Page 237 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 Page 238 of 420 20195 Holyoke Avenue, Lakeville, MN 55044 952-985-4400 • 952-985-4499 fax www.lakevillemn.gov June 26, 2026 The Honorable Mayor and Council Members 20195 Holyoke Avenue Lakeville, Minnesota 55044 Honorable Mayor, Members of the City Council and Citizens of the City of Lakeville : The Annual Comprehensive Financial Report is hereby presented for the purpose of providing you, the reader, with a thorough overview of the financial affairs of the City for the year ended December 31, 2025. The Report was prepared in accordance with Minnesota Statutes and Generally Accepted Accounting Principles (GAAP). This report was prepared by the City’s Finance Department and consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all information presented in this report. To provide a reasonable basis for making these representations, management of the City has established internal controls designed to protect the City’s assets from loss, theft or misuse and to provide sufficient reliable information for the preparation of these financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that to the best of our knowledge and belief this report is complete and reliable in all material respects. The City of Lakeville’s financial statements have been audited by Abdo, a professional firm of certified public accountants. The independent auditor’s report is included in the Financial Section of this report. The auditors have given this report an unmodified (“clean”) opinion, meaning that the financial statements fairly present the City’s financial position at December 31, 2025 and the changes in financial position for the year then ended. Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. 11 Page 239 of 420 Profile of Government The City of Lakeville is a suburban community located 20 miles south of downtown Minneapolis in the southeast corner of the Twin Cities metropolitan area within Dakota County. Lakeville enjoys an excellent location, with convenient access to the Minneapolis- Saint Paul metropolitan area via interstate highway I-35. The City is also just 25 minutes from the Minneapolis-Saint Paul International Airport. Lakeville continues to be one of the fastest growing cities in Minnesota with a population that has grown from 69,490 in 2020 to 78,810 in 2025. The City of Lakeville operates under the Mayor-Council form of organization. The governing City Council consists of the Mayor and four other Council members. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing members to the various committees and commissions, and hiring the City Administrator. The City Administrator is responsible for carrying out the policies, directions, and ordinances of the City Council and for overseeing the day-to-day operations of the City. The City Council is elected on a non-partisan at-large basis. The Mayor is elected to serve a four-year term, while Council Members serve four-year staggered terms, with two Council Members elected every two years. The City provides its residents and businesses with a full range of municipal services consisting of public safety (police and fire), public works, parks and recreation, and general government administration. The City also operates two enterprises: utilities (public water, sanitary sewer, streetlights and environmental resources) and off-sale liquor stores. Sewage treatment and disposal is operated on a regional basis by the Metropolitan Council Environmental Services (MCES) and refuse collection and disposal are handled on a private basis through contractual arrangements by City residents with private haulers. Further information regarding city services can be obtained from the City’s website at www.lakevillemn.gov The City is financially accountable for the Housing and Redevelopment Authority (HRA), which is included in the City’s financial statement. Additional information on the HRA can be found in Note 1A. – Summary of Significant Accounting Policies of the Notes to Basic Financial Statements. The annual budget serves as the foundation for the City of Lakeville’s financial planning and control. The budgetary process is outlined in the notes within the required supplementary information section of this report. The City applies budgetary controls to ensure compliance with legal provisions of the laws of Minnesota. Budgets are adopted on a basis consistent with GAAP. Annual budgets are adopted for the general fund and special revenue funds. The general fund budgetary comparison schedules are presented within the required supplementary information section and the special revenue funds budgetary comparison schedules are presented in the nonmajor governmental funds subsection of this report. 12 Page 240 of 420 Factors Affecting Financial Condition The City of Lakeville is committed to maintaining a strong financial condition, while continuing to provide quality public services to its residents and businesses. The City’s financial position, as reflected in the financial statements presented in this report, is perhaps best understood when it is considered from the broader perspective of the environment within which the City operates. Local Economy The City’s tax base is primarily residential and consists of mostly single-family homes. Commercial and industrial properties make up approximately eleven percent of the tax base. Following a post-2008 recession decline to a 2013 low of $4.8B, the City’s taxable valuation has steadily risen – reaching a new peak of $13B – driven by new construction and rising property values. Since 2016, the population has grown by 17,006 (28%), while City staff has increased by 32%. The City has a land area of 38 square miles with approximately 14% of its land available for development. In 2025, final plats were approved for 240 single-family units, 57 detached townhomes, 151 attached townhomes, 50 twin homes, 13 commercial, one industrial and 49-unit apartments. The trend for building permit activity for single-family homes is steady with building permits for single family homes/detached townhomes increasing from 385 in 2024 to 347 in 2025. The 2026 budget is premised on conservative modest growth of new single-family homes in the coming year. Actual Residential Units Estimated Residential Units Actual Single Family Estimated Single Family 13 Page 241 of 420 In 2025, the City issued $111.3 million in private investment and commercial diversification and industrial park development strengthening the City’s economic base, service capacity, and long-term growth trajectory. Industrial development activity remained strong in 2025, highlighted by multiple large- scale projects and business expansions within Lakeville’s industrial parks. The Lakeville 35 Logistics Center delivered a new 189,678-squarefoot warehouse facility, breaking ground in May and opening in December, with Pickle in the Middle secured as its first tenant. The Dakota Electric Association advanced construction of its 176,685-square-foot office and warehouse headquarters facility with outdoor storage, marking a significant long-term corporate investment. Additional industrial growth included an 11,500-square- foot expansion by NPL Construction, development of 98 flex garage condominium units through Midwest FlexSpace to support small businesses and storage demand, and approval of a new recycling and composting facility for Dakota Waste Solutions, expanding the city’s environmental and industrial services capacity. Collectively, these projects reinforce Lakeville’s position as a growing logistics, headquarters, and light industrial hub. The City of Lakeville broke ground in March 2025 on the City’s FiRST Center, a regional first responders training facility, and construction is currently underway. The approximately 40,000-square-foot facility is located at 7777 214th Street West on the former City Public Works site. The FiRST Center will serve public safety personnel from the south metro area and neighboring cities and counties. The City secured $8.9 million in federal and state funding to support construction of the $26 million project. The facility is expected to open in August 2026. Lakeville experienced substantial growth in healthcare services, including new clinics, specialty medical providers, dental expansions, and veterinary facilities. Notable additions and expansions included: 1) Midwest Ear, Nose & Throat Specialists; 2) Midwest Facial Plastic Surgery; 3) Tareen Dermatology; 4) Grow Pediatrics; 5) Lakeville Family Pet Clinic; and 6) Children’s Dental Care. The expansion of medical and wellness services increases professional employment, strengthens daytime population activity, and enhances Lakeville’s role as a regional service hub. Several large indoor recreation and wellness facilities opened or expanded in 2025, including: 1) Pickle in the Middle (15 indoor courts, 24/7 access); 2) Lake Point Gymnastics; 3) Wild Things Indoor Playground; and 4) Charged Rehab + Fitness. These facilities enhance quality of life, attract regional visitors, and support Lakeville’s family-oriented community profile. Lakeville continued to see reinvestment along key commercial corridors through new restaurants, retail openings, and financial institution projects. Highlights include: 1) Sala Thai Kitchen; 2) Tropical Smoothie Café; 3) Frandsen Bank & Trust (remodel); and 4) Chase Bank (new construction). Ongoing reinvestment reflects corridor vitality, adaptive reuse of commercial spaces, and continued consumer demand. Lakeville began formal integration into Minnesota’s regulated cannabis market with the opening of Green Box Cannabis and Legit Cannabis. Positioning within this emerging industry expands the City’s retail tax base and diversifies commercial occupancy 14 Page 242 of 420 Lakeville is served by Independent School District No. 192, Farmington, Independent School District No. 194, Lakeville, and Independent School District No. 196, Rosemount- Apple Valley-Eagan. Non-Public education is provided by All Saints Catholic School, Christian Heritage Academy, Southview Christian and Glory Academy. According to the Dakota County Assessor’s office, the estimated market value for the median value home increased by 3.73% as of March 2026 (for taxes payable 2026) to $468,000. For taxes payable 2027, the median value home has increased by 1.73% to $476,100. According to the Bureau of Labor Statistics, Lakeville’s unemployment rate is favorable compared to the State and National rates. Source: https://mn.gov/deed/data Major Initiatives Pressures and issues confronting the City were considered with the 2025 adopted budget including community growth, aging infrastructure, inflationary pressures, innovation and efficiencies, entrepreneurial efforts and preparing for the future. Community Growth. New residential housing construction continues to rise due in large part to improved economic conditions. The resumption of growth will result in increased demands for infrastructure enhancements as well as service delivery such as inspections, code enforcement, police, fire, streets, and parks. Addressing Aging Infrastructure. Our City has more than $400 million of investment in infrastructure such as roads, water mains, parks, trails, facilities, equipment, and other assets. The assets have maintenance, and in certain situations, replacement requirements. The 2025 budget addressed the short-term plan while the Capital Improvement Plan addressed the anticipated intermediate and long-term needs. The most significant 2025 projects included: ➢ Annual pavement maintenance program to improve city-wide pavement management index ➢ 2025 Street Reconstruction 15 Page 243 of 420 ➢ Collector Road Rehabilitation ➢ Lift Station #26 construction ➢ 185th St (CSAH 60) expansion (Kenwood Tr-Ipava Ave) ➢ North Creek Greenway phase 1 improvements ➢ Grand Prairie Park construction Inflationary Pressures. As the economy improves there will be upward pressure on commodities, services, and personnel costs. Inflation has increased significantly recently due to supply chain disruptions, etc. The budget anticipated modest price increases in the near term. Innovation and Efficiencies. Lakeville has a long-standing history of being fiscally conservative and prudent. Although the City of Lakeville receives no state aid for property tax relief, per capita current expenditures for operations are still amongst the lowest in the Twin Cities according to the Minnesota State Auditor’s Office. The adopted budget included several initiatives which continued the focus on a commitment to cost effectiveness and efficiency. Effective application of technology is a major factor in optimizing organizational efficiencies. Entrepreneurial Efforts. Continued marketing initiatives are proposed to promote economic developments. Several years ago, property was acquired in southwestern Lakeville for what is now known as the Keokuk liquor store, the City’s fourth liquor store. The excess land adjacent to the Keokuk liquor store is currently being marketed for sale for a complementary business to further improve revenues and sales opportunities. Preparing for the Future. As a community that embraces a high quality of life and a pro- business attitude, Lakeville is “Positioned to Thrive.” It is an objective that embraces a vision for the future and a commitment to preparing for it. Long-term Financial Planning There is an interrelationship between a community’s physical development and its long- term financial plan. A comprehensive plan provides guidance for current and future land use and public infrastructure decisions to provide managed growth throughout the community. The City of Lakeville completes an update of its Comprehensive Plan every ten years. The City prepares an annually updated Capital Improvement Plan (CIP) which is a flexible, five-year plan that identifies the City’s infrastructure, development objectives and allocation of financial resources. The CIP identifies funding for the projects and provides policy makers and the community with a strategic (documented) approach to implementation and administration of improvement projects. The City will invest $325 million in transportation, utility, equipment, technology, facilities, and parks over the next five years to achieve program objectives. 16 Page 244 of 420 The City has also implemented long-term financial planning models for its governmental funds, utility funds and debt funds. This effort of forecasting operating and capital budgets has positioned the City to better handle the growing demand for City services, increased infrastructure, and the economic impact of unforeseen events. Moody’s Investors Service maintains a Aaa rating, citing the City of Lakeville has a strong and growing local economy, ample reserves and modest leverage. The City has various capital projects over the next several years that will be financed through built-up reserves and further debt issuances, though the available fund balance ratio will remain strong and long-term liabilities will remain relatively low. This top rating from Moody’s is shared by only 13 other Minnesota cities. There are 44 MN cities with either Moody’s Aaa and/or S&P Global’s AAA rating. As of December 31, 2025, the City of Lakeville had approximately $163.395 million of debt outstanding. The City will issue approximately $115 million general obligation improvement bonds in the coming years to finance street reconstruction projects, and facility expansion. 17 Page 245 of 420 Relevant Financial Policies The City has multiple policies which are utilized in the management of its fiscal affairs. The primary policies include, but are not limited to, operating budget policy, budget amendment process, revenue, debt, investment, and fund balance. The City also adopted a Financial Sustainability and Resiliency policy in January 2020. • Operating Budgets. The City’s operating budget policy sets forth guidance with respect to balanced operating budgets, with an overriding goal of achieving structural balance over a longer-term period, while recognizing that in certain periods, revenues and expenditures may not be equal. A balanced budget for the General Fund is defined as revenues and other sources equal to or exceeding operating expenditures and other uses. Other sources can include that portion of General Fund balance that is allowed to be budgeted for use per the City’s fund balance policy. The budget will provide for adequate maintenance of capital facilities and equipment and for their orderly replacement. Balanced budgets for the proprietary enterprise funds are defined as providing sufficient revenues to support the operations of those funds, without subsidy from the General Fund or property taxes. Charges from the Proprietary Internal Service Funds shall be sufficient to support such activities, with no trend of operating deficits. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is at the fund level for the General Fund and Special Revenue Funds. The City Administrator has authorization to expend funds in excess of the appropriation for each department and to approve budget amendments between departments within a budgeted fund pursuant to all adopted financial policies. Budgeted expenditure appropriations lapse at year-end. Supplementary appropriations can be carried forward to the following year if approved by the City Council. • Revenue Policies. The City will project its annual revenues by a conservative objective and thorough analytical process. The City will endeavor to maintain a diversified and stable revenue system to shelter it from annual fluctuations in any one revenue source. All existing and potential revenue sources will be re-examined annually. New sources of non-property-tax revenue should always be actively explored. Where appropriate and not contrary to accepted public policy or statutes, emphasis will be directed toward full cost recovery through user fees. User fees and cost allocation formulas will be updated periodically (annually, if needed). Ongoing, the City will review the full cost of activities supported by user fees to identify the impact of inflation and other factors. The fees along with the resulting net property tax costs will be reviewed with the City Council during the budget process. Sensitivity to market rates will also be considered in setting fees. Intergovernmental grant requests are subject to fiscal review before the application is submitted. This review is to ensure that the grants do not create an obligation for unfunded expenditures by the City relating to the grant’s purpose and to provide an overall budgetary review of grant proposals. 18 Page 246 of 420 • Debt. The City’s debt policy provides guidance to ensure that long-term debt is utilized appropriately and in a fiscally prudent manner. Limiting long-term borrowing to capital improvements or other long-term projects which cannot, and appropriately should not, be financed from current revenues. Final maturity of bonds and notes should not exceed the expected useful life of the underlying project for which it is being issued. Where possible, the City will endeavor to pledge special assessments, State-aid or other non-tax revenues to debt service payments. • Investments. The City’s policy is to invest all available monies at competitive interest rates, coordinated with projections of the City’s operating and program cash flow needs. Interest earnings will be allocated to each fund based on its average cash balance. Investments will take into consideration safety, liquidity and yield as well as complying with State regulations. • Fund Balance. Fund balance or net position are terms used to define the difference between a fund’s assets, deferred outflows of financial resources, liabilities, and deferred inflows of financial resources. Fund balance is used in governmental fund types and net position is used in proprietary fund types and the government-wide financial statements. • Financial Sustainability and Resiliency Policy. The City Council adopted this new policy in January 2020. The purpose of this policy is to establish strategic financial sustainability and resiliency principles for the City of Lakeville, which may be used when developing the annual budget, long-term financial plans, and when making critical financial, economic development and community development decisions. Awards Certificate of Achievement The Government Finance Officers Association (GFOA) of the United States awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Lakeville, Minnesota, for its annual comprehensive financial report for the fiscal year ended December 31, 2024. This is the thirty-seventh consecutive year that the City of Lakeville has received this prestigious award. To be awarded a Certificate of Achievement for Excellence, a government must publish an easily readable and efficiently organized annual comprehensive financial report, and the contents must conform to the program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. We believe our current annual comprehensive financial report continues to conform to the Certificate of Achievement for Excellence program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. 19 Page 247 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 20 Page 248 of 420 Financial Policy Challenge The City also earned recognition as a winner of the Financial Policy Challenge from the Government Finance Officers Association (GFOA) in 2021 for its Financial Sustainability and Resiliency Policy. The GFOA launched this Challenge as an opportunity for GFOA members to adopt and share financial policies that are essential to a strong financial foundation. Acknowledgments The preparation of this report could not have been accomplished without the professional, efficient, and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members of the department, with special recognition to Senior Financial Analysts Tom Nesseth, Laura Miller, and Julie Werner. We would also like to express our sincere gratitude to the City Council for its sincere commitment and progressive leadership in the financial affairs of our community. Respectfully submitted, Justin Miller Julie Stahl City Administrator Finance Director/Treasurer 21 Page 249 of 420 City of Lakeville, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2025 Name Title Term Expires Luke Hellier Mayor 12/31/26 John Bermel Council Member 12/31/28 Joshua Lee Council Member 12/31/26 Michelle Volk Council Member 12/31/26 Dan Wolter Council Member 12/31/28 Name Title Justin Miller City Administrator Julie Stahl Finance Director/Treasurer Ann Orlofsky City Clerk CITY COUNCIL CITY OFFICIALS 22 Page 250 of 420 City Attorney Lakeville Area Arts Center Advisory Board Economic Development Commission Parks, Recreation & Natural Resources Commission Finance Committee Planning Commission Housing & Redevelopment Authority Youth Advisory Commission Human Resources Asst. to the City Administrator City Clerk Communications Information Tech Liquor Operations Asst. City Administrator Building Inspections Economic Development Planning & Zoning Community Development Finance Fire Arts Center Heritage Center Park Maintenance Programming & Recreation Parks & Recreation Police Construction Services Forestry Engineering Geographic Information Svs Environmental Resources Street & Fleet Maintenance Facility Maintenance Utilities Maintenance Public Works City Administrator Mayor and City Council Citizens of Lakeville City of Lakeville, Minnesota Organizational Structure September 8, 2025 23 Page 251 of 420 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lakeville Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 Executive Director/CEO 24 Page 252 of 420 FINANCIAL SECTION CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 25 Page 253 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 26 Page 254 of 420 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Lakeville, Minnesota Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Lakeville, Minnesota (the City), as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Lakeville’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 27 Page 255 of 420 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis starting on page 31 and the Schedules of Employer’s Share of the Net Pension Liability, the Schedule of Changes in Net Pension Liability and Related Ratios, the Schedules of Employer’s Contributions, the related note disclosures, the Schedule of Changes in the City’s OPEB Liability and Related Ratios, and the respective budgetary comparison schedules and related note disclosures, starting on page 108 are presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole. 28 Page 256 of 420 Other Information Management is responsible for the other information in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 26, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Abdo Minneapolis, Minnesota June 26, 2026 29 Page 257 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 30 Page 258 of 420 Management’s Discussion and Analysis As management of the City of Lakeville, Minnesota, (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2025. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The basic financial statements present two different views of the City through the use of government -wide statements and fund financial statements. In addition to the basic financial statements, this report contains other supplemental information that will enhance the reader’s understanding of the financial condition of the City of Lakeville. Figure 1 Required Components of the City’s Annual Financial Report 31 Page 259 of 420 Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Figure 2 Major Features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-wide Statements Governmental Funds Proprietary Funds Fiduciary Funds Scope Entire City government (except fiduciary funds) and the City’s component units The activities of the City that are not proprietary or fiduciary, such as police, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Instances in which the City administers resources on behalf of someone else Required financial statements • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures and Changes in Fund Balances • Statement of Net Position • Statement of Revenues, Expenses and Changes in Net Position • Statement of Cash Flows • Statement of Fiduciary Net Position • Statement of Changes in Fiduciary Net Position Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long-term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long-term All assets and liabilities, both short- term and long-term; funds do not currently contain capital assets, although they can Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/outflow of resources information All revenues and expenses during the year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid All additions and deductions during the year, regardless of when cash is received or paid 32 Page 260 of 420 Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private -sector business. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public wo rks, culture and recreation, community development, and interest on long-term debt. The business-type activities of the City include Utility and Municipal Liquor. The government-wide financial statements start on page 45 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds, many of which are debt service funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Debt Service fund and Capital Projects fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements and schedules elsewhere in this report. The basic governmental fund financial statements start on page 50 of this report. Proprietary Funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its liquor and utility operations. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses its internal service funds to account for the funding of risk management and compensated leave to other functions of the City. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility (water/sanitary sewer/street lighting/environmental resources) and Municipal Liquor, both of which are considered to be major funds of the City. The basic proprietary fund financial statements start on page 54 of this report. 33 Page 261 of 420 Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on page 60 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 63 of this report. Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Lakeville’s share of net pension liabilities for defined benefit plans, schedules of contributions, and progress in funding its obligation to provide pension and other postemployment benefits to its employees. Required supplementary information can be found starting on page 108 of this report. 34 Page 262 of 420 Analysis of the City’s Finances Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) Assets Current and other assets 181,722,775$ 175,502,378$ 6,220,397$ 45,876,533$ 42,537,110$ 3,339,423$ Capital assets 419,702,629 387,482,576 32,220,053 220,132,208 211,014,798 9,117,410 Total Assets 601,425,404 562,984,954 38,440,450 266,008,741 253,551,908 12,456,833 Deferred Outflows of Resources Deferred pension resources 13,169,843 14,817,186 (1,647,343) 393,348 437,963 (44,615) Deferred other postemployment benefit resources 1,048,042 255,376 792,666 79,831 52,990 26,841 Total Deferred Outflows of Resources 14,217,885 15,072,562 (854,677) 473,179 490,953 (17,774) Liabilities Long-term liabilities outstanding 197,862,401 181,819,713 16,042,688 12,525,871 14,548,818 (2,022,947) Other liabilities 18,860,548 16,320,363 2,540,185 1,696,601 1,650,902 45,699 Total Liabilities 216,722,949 198,140,076 18,582,873 14,222,472 16,199,720 (1,977,248) Deferred Inflows of Resources Deferred gain on refunding 680,891 844,291 (163,400) - - - Deferred pension resources 18,351,934 20,283,098 (1,931,164) 1,086,389 1,294,954 (208,565) Deferred other postemployment benefit resources 391,945 411,731 (19,786) 29,856 85,434 (55,578) Deferred lease resources 8,056,350 8,124,692 (68,342) - - - Total Deferred Inflows of Resources 27,481,120 29,663,812 (2,182,692) 1,116,245 1,380,388 (264,143) Net Position Net investment in capital assets 243,091,334 259,538,899 (16,447,565) 210,016,244 199,011,990 11,004,254 Restricted 79,019,597 72,430,099 6,589,498 - - - Unrestricted 49,328,289 18,284,630 31,043,659 41,126,959 37,450,763 3,676,196 Total Net Position 371,439,220$ 350,253,628$ 21,185,592$ 251,143,203$ 236,462,753$ 14,680,450$ Net Position as a Percent of Total Net investment in capital assets 65.4 %72.8 %83.6 %71.4 % Restricted 21.3 17.9 - - Unrestricted 13.3 9.3 16.4 28.6 100.0 %100.0 %100.0 %100.0 % Governmental Activities Business-type Activities As shown in the table above, as of December 31, 2025, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources. The City’s total net position increased as a result of the financial performance of the governmental and business-type activities. The following sections of the MD&A analyze the finances of the governmental and business-type activities separately. 35 Page 263 of 420 Governmental Activities. Governmental activities increased the City’s net position, as shown below. City of Lakeville’s Changes in Net Position Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) Revenues Program Revenues Charges for services 19,779,007$ 18,843,137$ 935,870$ 44,624,101$ 43,934,809$ 689,292$ Operating grants and contributions 10,919,893 2,368,016 8,551,877 1,057,093 217,437 839,656 Capital grants and contributions 15,287,779 19,478,574 (4,190,795) 9,304,958 9,866,907 (561,949) General Revenues Property taxes/tax increments 49,472,323 44,289,880 5,182,443 - - - Franchise taxes 4,311,494 531,252 3,780,242 - - - Other taxes 21,503 - 21,503 - - - Other general revenues 112,078 - 112,078 - - - Gain (loss) on sale of capital assets 443,111 - 443,111 - - - Unrestricted investment earnings 6,512,987 5,630,680 882,307 1,896,898 1,368,137 528,761 Total Revenues 106,860,175 91,141,539 15,718,636 56,883,050 55,387,290 1,495,760 Expenses General government 9,025,433 9,524,931 (499,498) - - - Public safety 25,614,766 21,818,556 3,796,210 - - - Public works 34,288,620 27,274,347 7,014,273 - - - Culture and recreation 12,426,288 11,644,154 782,134 - - - Interest on long-term debt 2,655,538 3,535,602 (880,064) - - - Municipal liquor - - - 20,782,362 21,357,518 (575,156) Utility - - - 23,084,176 22,236,710 847,466 Total Expenses 84,010,645 73,797,590 10,213,055 43,866,538 43,594,228 272,310 Increase (Decrease) in Net Position Before Transfers 22,849,530 17,343,949 5,505,581 13,016,512 11,793,062 1,223,450 Transfers (1,663,938) 892,503 (2,556,441) 1,663,938 (892,503) 2,556,441 Change in Net Position 21,185,592 18,236,452 2,949,140 14,680,450 10,900,559 3,779,891 Net Position, January 1 350,253,628 332,017,176 18,236,452 236,462,753 225,562,194 10,900,559 Net Position, December 31 371,439,220$ 350,253,628$ 21,185,592$ 251,143,203$ 236,462,753$ 14,680,450$ Governmental Activities Business-type Activities Key elements of this $6.8 million increase in Net Position are as follows: • Operating and capital grants and contributions increased $4.6 million or 14.5%. Approximately $1.4 million of this increase was the first ten months of the three-year SAFER grant for full-time firefighters. • Increases in property tax revenues of $5.2 million or 11.7%. Tax revenues for the year increased primarily due to a 2.5% tax rate increase and an average increase of approximately 3% in taxable property values, driven by local real estate values and growth. A higher collection rate also contributed to the increase. • Increases in franchise tax revenues of $3.8 million is due to the City’s adoption of gas and electric franchise fee ordinances in December 2024. Collection commenced April 1, 2025, resulting in partial-year revenue. The fees were established to fund public safety infrastructure and services necessary to meet the demands of Lakeville’s continued growth as the eighth largest city in Minnesota. 36 Page 264 of 420 • These revenue increases - along with $1.7 million in increased charges for services and $1.4 million increased investment earnings - accounted for overall revenues increasing by $17.3 million. • Expenditure increases of $11.6 million were driven primarily by capital infrastructure investments and service expansions across public safety, public works, and utility operations. Increases in operating grants Increases in intergovernmental revenues from various sources including local housing aid, the SAFER grant and municipal state aids. Increase in Franchise Taxes Due to new residential and commercial franchise fee agreements with electric and gas utilities . The following graphs depict various governmental activities and show the revenue and expenses directly related to those activities. Expenses and Program Revenues - Governmental Activities $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 General Government Public Safety Public Works Culture and Recreation Interest on Long- term Debt Program Revenues Expenses Revenues by Source - Governmental Activities Charges for Services 18.5% Operating Grants and Contributions 10.2% Capital Grants and Contributions 14.3% Taxes 50.4% Unrestricted Investment Earnings 6.1% Gain on Sale of Capital Assets 0.4% Other 0.1% 37 Page 265 of 420 Business-type Activities. Business-type activities increased the City’s net position, as shown in the changes in net position table. Key elements of this increase are as follows: • Total expenses for municipal liquor operations decreased primarily due to lower cost of goods sold, consistent with reduced sales volume (industry-wide phenomenon), and decreased personnel service costs. • Transfers out for business-type activities increased to help meet debt obligations and capital costs, reducing the burden on the property tax levy. • Utility charges for services increased due to growth within the city and increased rates. Expenses and Program Revenues - Business - type Activities $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Municipal Liquor Utility Program Revenues Expenses Revenues by Source - Business - type Activities Charges for Services 78.4% Capital Grants and Contributions 16.4% Operating Grants and Contributions 1.9% Unrestricted Investment Earnings 3.3% 38 Page 266 of 420 Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The table below outlines the governmental fund balances for the year ending December 31, 2025. Nonmajor Debt Capital Governmental Prior Year Increase/ General Service Projects Funds Total Total (Decrease) Fund Balances Nonspendable 202,134$ -$ -$ -$ 202,134$ 352,765$ (150,631)$ Restricted - 27,711,830 38,716,019 958,693 67,386,542 59,112,599 8,273,943 Committed - - 41,768,122 839,945 42,608,067 47,971,292 (5,363,225) Assigned 775,000 - - - 775,000 - 775,000 Unassigned 24,453,214 - - - 24,453,214 20,668,085 3,785,129 Total 25,430,348$ 27,711,830$ 80,484,141$ 1,798,638$ 135,424,957$ 128,104,741$ 7,320,216$ As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances shown above. Additional information on the City’s fund balances can be found in Note 1 starting on page 72 of this report. The General fund is the chief operating fund of the City. At the end of the current year, the fund balance of the General fund is shown in the table above. As a measure of the General fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. The total unassigned fund balance as a percent of total fund expenditures is shown in the chart below along with total fund balance as a percent of total expenditures . Current Year Prior Year Increase/ Ending Balance Ending Balance (Decrease) General Fund Fund Balances Nonspendable 202,134$ 352,765$ (150,631)$ Restricted - 1,850,000 (1,850,000) Assigned 775,000 - 775,000 Unassigned 24,453,214 20,983,864 3,469,350 Total 25,430,348$ 23,186,629$ 2,243,719$ General Fund expenditures 42,175,941$ 39,129,807$ Unassigned as a percent of expenditures 58.0%53.6% Total Fund Balance as a percent of expenditures 60.3%59.3% The fund balance of the City’s General fund increased during the current fiscal year as shown in the table above. The increase in fund balance was due to positive revenue and expenditure budget variances which are described further in the notes to the budgetary comparison schedules. 39 Page 267 of 420 Other major governmental fund analysis is shown below: Increase 2025 2024 (Decrease) Debt Service 27,711,830$ 23,590,844$ 4,120,986$ Capital Projects 80,484,141$ 79,690,723$ 793,418$ The fund balance increased due to bond issuances for the public safety building construction. Fund Balance December 31, The increase in fund balance of the Debt Service funds is due to tax and special assessment revenues in excess of scheduled debt service payments. Major Funds Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Net position of the City’s proprietary funds increased or (decreased) as follows: Ending Ending Net Position Net Position Increase/ 2025 2024 (Decrease) Municipal Liquor 12,763,867$ 12,984,719$ (220,852)$ Utility 238,379,336$ 223,226,221$ 15,153,115$ The increase primarily relates to capital contributions from governmental funds and developers. The decrease primarily is attributed to a transfer out that occurred during the year that was in excess of the funds operating and nonoperating income. Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business -type activities as of December 31, 2025, is shown below in capital asset table (net of accumulated depreciation). This investment in capital assets includes land, right of ways and easements, structures, improvements, machinery and equipment, vehicles, roads, highways and bridges. The total increase in the City’s investment in capital assets for the current fiscal year for governmental and business-type activities is due to asset additions in excess of depreciation expense. Major capital asset events during the current fiscal year included: • Land purchase for new Fire Station #2 • Grand Prairie Park Project • Construction of the Public Safety Training Facility • Various developer installed infrastructure additions • County turn-back and construction for Dodd Blvd/179th St Additional information on the City’s capital assets can be found in Note 3C starting on page 77 of this report. 40 Page 268 of 420 City of Lakeville’s Capital Assets (Net of Depreciation) Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) Land 43,381,242$ 37,683,547$ 5,697,695$ 3,674,193$ 3,672,969$ 1,224$ Historical Treasures 218,700 218,700 - - - - Construction in Progress 33,594,336 14,128,422 19,465,914 123,477 37,894 85,583 Buildings and Improvements 50,885,857 52,830,582 (1,944,725) 20,627,976 21,301,379 (673,403) Machinery and Equipment 12,190,066 11,252,370 937,696 5,611,212 5,670,692 (59,480) Right-to-Use Assets - - - 2,572,970 2,927,146 (354,176) Other Improvements 15,622,021 15,082,142 539,879 - - - Infrastructure Streets 128,325,147 126,258,240 2,066,907 - - - Storm Sewer 109,263,871 105,300,683 3,963,188 - - - Parks 26,221,389 24,727,890 1,493,499 - - - Environmental Resources - - - 761,753 508,501 253,252 Water - - - 113,153,355 107,373,436 5,779,919 Improvements other than BuildingsSanitary Sewer - - - 73,607,272 69,522,781 4,084,491 Total 419,702,629$ 387,482,576$ 32,220,053$ 220,132,208$ 211,014,798$ 9,117,410$ Business-type ActivitiesGovernmental Activities Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding consisting of special assessment debt, revenue related debt and general obligation debt as noted in the table below. While all of the City’s bonds have revenue streams, they are all backed by the full faith and credit of the City. City of Lakeville’s Outstanding Debt Increase Increase 2025 2024 (Decrease)2025 2024 (Decrease) General Obligation Bonds 88,565,000$ 71,030,000$ 17,535,000$ -$ -$ -$ Bond Premium 8,107,865 8,707,324 (599,459) 399,192 555,730 (156,538) General Obligation Water Revenue Bonds 4,635,000 5,125,000 (490,000) - - - Tax Abatement Bonds 15,245,000 16,290,000 (1,045,000) - - - State Aid Bonds 3,045,000 3,260,000 (215,000) - - - General Obligation Special Assessment Improvement Bonds 44,900,000 51,345,000 (6,445,000) - - - Met Council Loans 2,956,795 2,956,795 - - - - Dakota County Advances 12,643,562 5,174,149 7,469,413 - - - General Obligation Utility Bonds - - - 6,455,000 7,585,000 (1,130,000) Total 180,098,222$ 163,888,268$ 16,209,954$ 6,854,192$ 8,140,730$ (1,286,538)$ Business-type ActivitiesGovernmental Activities The City’s total bonded long-term debt increased during the current fiscal year. The City issued one General Obligation bond. Offsetting this increase were regularly scheduled debt service principal payments. The City obtained a “AAA” rating from Standard and Poor’s for general obligation debt. Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes. As of December 31. 2025, the City is under the legal debt margin. Additional information on the City’s long-term debt can be found in Note 3E starting on page 80 of this report. 41 Page 269 of 420 Currently Known Facts, Decisions, or Conditions The City of Lakeville experienced a busy year of development activity in 2025, issuing building permits with a total valuation of $381,162,334 – a 47.9% increase over 2024. The City issued 551 residential permits this year and 229 of those were single-family homes. The average building permit value on a single-family home in 2025 was $349,610. Lakeville ranked first in the Minneapolis-St. Paul metropolitan area for residential permits, followed by Rosemount, St. Michael and Shakopee. Lakeville ranked #1 in the metro from 2013-2022 and 2025, and #2 from 2023-2024. The adopted 2026 budget meets the city’s growing program and service levels, adding 3 new positions – an Information Technology Specialist, a Facilities Technician and a Park Maintenance II position. The 2026 budget has planned use of $175,000 for the one-time expenditure of the 2050 Comprehensive Plan update. The 2026 budget still retains a 50% fund balance per the City’s financial policy. The 2026 budget supports the Envision Lakeville Vision Plan by investing in technology, strategic partnerships, infrastructure, and staffing to enhance efficiency, foster development, and meet community expectations. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Lakeville Finance Department at 20195 Holyoke Avenue, Lakeville, Minnesota 55044, (952) 985-440, or email request to jstahl@lakevillemn.gov. 42 Page 270 of 420 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 43 Page 271 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 44 Page 272 of 420 City of Lakeville, Minnesota Statement of Net Position December 31, 2025 Governmental Business-type Activities Activities Total Assets Cash and investments 144,720,567$ 37,573,339$ 182,293,906$ Receivables Accounts 8,651,325 4,831,413 13,482,738 Accrued interest 865,358 222,054 1,087,412 Taxes 2,633,603 - 2,633,603 Leases 8,616,868 - 8,616,868 Special assessments 11,591,080 844,522 12,435,602 Inventories 157,104 2,392,999 2,550,103 Prepaid items 45,030 12,206 57,236 Net pension asset 4,441,840 - 4,441,840 Capital assets Land and construction in progress 77,194,278 3,797,670 80,991,948 Lease building - net of amortization - 2,572,970 2,572,970 Depreciable assets (net of accumulated depreciation)342,508,351 213,761,568 556,269,919 Total Assets 601,425,404 266,008,741 867,434,145 Deferred Outflows of Resources Deferred pension resources 13,169,843 393,348 13,563,191 Deferred other postemployment benefit resources 1,048,042 79,831 1,127,873 Total Deferred Outflows of Resources 14,217,885 473,179 14,691,064 Liabilities Accounts and contracts payable 7,966,666 1,120,138 9,086,804 Accrued salaries and withholdings payable 828,335 137,282 965,617 Accrued interest payable 2,858,821 98,756 2,957,577 Due to other governments 737 93 830 Deposits payable 6,491,921 55,797 6,547,718 Unearned revenue 714,068 284,535 998,603 Noncurrent liabilities Due within one year Long-term liabilities 13,710,000 1,718,608 15,428,608 Other postemployment benefits liability 31,407 2,392 33,799 Due in more than one year Long-term liabilities 169,972,572 5,749,192 175,721,764 Lease payable - 2,648,164 2,648,164 Compensated absences payable - 687,565 687,565 Other postemployment benefits liability 2,087,507 159,011 2,246,518 Net pension liability 12,060,915 1,560,939 13,621,854 Total Liabilities 216,722,949 14,222,472 230,945,421 Deferred Inflows of Resources Deferred gain on refunding 680,891 - 680,891 Deferred pension resources 18,351,934 1,086,389 19,438,323 Deferred other postemployment benefit resources 391,945 29,856 421,801 Deferred lease resources 8,056,350 - 8,056,350 Total Deferred Inflows of Resources 27,481,120 1,116,245 28,597,365 Net Position Net investment in capital assets 243,091,334 210,016,244 453,107,578 Restricted for Special purposes 802,084 - 802,084 Debt service 34,903,045 - 34,903,045 Capital acquisition 38,716,019 - 38,716,019 Opioid remediation activities 156,609 - 156,609 Fire relief pensions 4,441,840 - 4,441,840 Unrestricted 49,328,289 41,126,959 90,455,248 Total Net Position 371,439,220$ 251,143,203$ 622,582,423$ The notes to the financial statements are an integral part of this statement. 45 Page 273 of 420 City of Lakeville, Minnesota Statement of Activities For the Year Ended December 31, 2025 Operating Capital Charges For Grants and Grants and Expenses Services Contributions Contributions Primary Government Governmental activities General government 9,025,433$ 5,956,779$ 727,054$ -$ Public safety 25,614,766 801,341 3,394,709 - Public works 34,288,620 8,109,882 6,188,891 14,578,024 Parks and recreation 12,426,288 4,911,005 609,239 709,755 Interest on long term debt 2,655,538 - - - Total Governmental Activities 84,010,645 19,779,007 10,919,893 15,287,779 Business-type Activities Liquor 20,782,362 22,002,600 90,431 - Utility 23,084,176 22,621,501 966,662 9,304,958 Total Business-type Activities 43,866,538 44,624,101 1,057,093 9,304,958 Total Governmental and 127,877,183$ 64,403,108$ 11,976,986$ 24,592,737$ Business-type Activities General Revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Tax increments Franchise taxes Other taxes Unrestricted investment earnings Other general revenues Gain on sale of capital assets Transfers - Internal Activities Total General Revenues and Transfers Change in Net Position Net Position - January 1 Net Position - December 31 Functions/Programs Program Revenues The notes to the financial statements are an integral part of this statement. 46 Page 274 of 420 Governmental Business-Type Activities Activities Total (2,341,600)$ -$ (2,341,600)$ (21,418,716) - (21,418,716) (5,411,823) - (5,411,823) (6,196,289) - (6,196,289) (2,655,538) - (2,655,538) (38,023,966) - (38,023,966) - 1,310,669 1,310,669 - 9,808,945 9,808,945 - 11,119,614 11,119,614 (38,023,966) 11,119,614 (26,904,352) 36,067,649 - 36,067,649 12,773,050 - 12,773,050 631,624 - 631,624 4,311,494 - 4,311,494 21,503 - 21,503 6,512,987 1,896,898 8,409,885 112,078 - 112,078 443,111 - 443,111 (1,663,938) 1,663,938 - 59,209,558 3,560,836 62,770,394 21,185,592 14,680,450 35,866,042 350,253,628 236,462,753 586,716,381 371,439,220$ 251,143,203$ 622,582,423$ Changes in Net Position Primary Government Net (Expenses) Revenues and The notes to the financial statements are an integral part of this statement. 47 Page 275 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 48 Page 276 of 420 FUND FINANCIAL STATEMENTS CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 49 Page 277 of 420 Nonmajor Debt Capital Governmental General Service Projects Funds Total Assets Cash and investments 30,663,951$ 26,191,305$ 85,012,641$ 1,741,215$ 143,609,112$ Receivables Accrued interest 152,738 157,086 541,939 7,380 859,143 Accounts 1,065,153 1,388,368 6,076,330 106,712 8,636,563 Taxes 2,633,603 - - - 2,633,603 Leases 27,743 550,000 8,039,125 - 8,616,868 Special assessments 19,597 10,093,518 1,477,965 - 11,591,080 Inventories 157,104 - - - 157,104 Prepaid items 45,030 - - - 45,030 Total Assets 34,764,919$ 38,380,277$ 101,148,000$ 1,855,307$ 176,148,503$ Liabilities Accounts payable 981,825$ 7,839$ 4,893,340$ 1,315$ 5,884,319$ Accrued salaries and withholdings payable 816,148 - - 12,187 828,335 Contracts payable - - 2,072,881 - 2,072,881 Due to other governments 737 - - - 737 Deposits payable 6,334,479 - 157,442 - 6,491,921 Unearned revenue 711,547 - 2,521 - 714,068 Total Liabilities 8,844,736 7,839 7,126,184 13,502 15,992,261 Deferred Inflows of Resources Unavailable revenue - taxes 444,604 - - - 444,604 Unavailable revenue - special assessments 19,597 10,050,036 1,478,419 - 11,548,052 Deferred lease resources 25,634 550,000 7,437,549 43,167 8,056,350 Unavailable revenue - intergovernmental - 60,572 4,621,707 - 4,682,279 Total Deferred Inflows of Resources 489,835 10,660,608 13,537,675 43,167 24,731,285 Fund Balances Nonspendable 202,134 - - - 202,134 Restricted - 27,711,830 38,716,019 958,693 67,386,542 Committed - - 41,768,122 839,945 42,608,067 Assigned 775,000 - - - 775,000 Unassigned 24,453,214 - - - 24,453,214 Total Fund Balances 25,430,348 27,711,830 80,484,141 1,798,638 135,424,957 Total Liabilities, Deferred Inflows of Resources and Fund Balances 34,764,919$ 38,380,277$ 101,148,000$ 1,855,307$ 176,148,503$ City of Lakeville, Minnesota Balance Sheet Governmental Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 50 Page 278 of 420 City of Lakeville, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2025 Amounts reported for governmental activities in the statement of net position are different because Total Fund Balances - Governmental 135,424,957$ Long-term assets from pensions reported in governmental activities are not financial resources and therefore are not reported as assets in the funds.4,441,840 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Cost of capital assets 666,217,744 Less accumulated depreciation (246,515,115) Noncurrent liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Noncurrent liabilities at year-end consist of Bonds payable (156,390,000) Unamortized bond premium and discount (8,107,865) Deferred gain on refunding (680,891) Loans and advances payable (15,600,357) OPEB liability (2,118,914) Net pension liability (12,060,915) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are reported as unavailable revenue in the funds. Property taxes 444,604 Special assessments 11,548,052 Intergovernmental 4,682,279 Governmental funds do not report a liability for accrued interest until due and payable.(2,858,821) Governmental funds do not report long-term amounts related to pensions. Deferred outflows of pension resources 13,169,843 Deferred inflows of pension resources (18,351,934) Governmental funds do not report long-term amounts related to other post-employment benefits. Deferred outflows of OPEB resources 1,048,042 Deferred inflows of OPEB resources (391,945) Internal service funds are used by management to charge the cost of services to individual funds. The assets and liabilities are included in the governmental statement of net position.(2,461,384) Total Net Position - Governmental Activities 371,439,220$ The notes to the financial statements are an integral part of this statement. 51 Page 279 of 420 Nonmajor Debt Capital Governmental General Service Projects Funds Total Revenues Taxes 33,115,094$ 12,773,050$ 3,100,000$ -$ 48,988,144$ Tax increment - - 487,297 - 487,297 Franchise taxes - 3,826,574 - 450,722 4,277,296 Licenses and permits 3,661,713 - - - 3,661,713 Intergovernmental 3,641,318 615,966 11,013,428 635,458 15,906,170 Charges for services 4,245,472 306,205 9,740,473 36,223 14,328,373 Fines and forfeits 196,228 - - - 196,228 Special assessments 83,355 2,473,017 565,568 - 3,121,940 Investment income 1,006,832 847,192 4,541,764 71,577 6,467,365 Miscellaneous 250,251 - 923,845 64,539 1,238,635 Total Revenues 46,200,263 20,842,004 30,372,375 1,258,519 98,673,161 Expenditures Current General government 7,442,509 - - 1,019,071 8,461,580 Public safety 22,317,292 - - - 22,317,292 Public works 6,189,705 - - - 6,189,705 Culture and recreation 5,964,679 - - - 5,964,679 Capital outlay General government 67,238 - 836,314 48,700 952,252 Public safety 43,446 - 18,212,836 - 18,256,282 Public works 130,857 - 28,924,671 - 29,055,528 Culture and recreation 20,215 - 16,660,943 - 16,681,158 Debt service Principal - 12,910,000 - - 12,910,000 Interest and other charges - 5,503,356 - - 5,503,356 Total Expenditures 42,175,941 18,413,356 64,634,764 1,067,771 126,291,832 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,024,322 2,428,648 (34,262,389) 190,748 (27,618,671) Other Financing Sources (Uses) Sale of capital assets 14,897 - 428,214 - 443,111 Transfers in 54,500 1,954,691 3,906,004 - 5,915,195 Issuance of bonds and other debt - 791,245 30,375,658 - 31,166,903 Premiums on bonds issued - - 1,031,777 - 1,031,777 Transfers out (1,850,000) (1,053,598) (685,846) (28,655) (3,618,099) Total Other Financing Sources (Uses)(1,780,603) 1,692,338 35,055,807 (28,655) 34,938,887 Net Changes in Fund Balances 2,243,719 4,120,986 793,418 162,093 7,320,216 Fund Balances, January 1 23,186,629 23,590,844 79,690,723 1,636,545 128,104,741 Fund Balances, December 31 25,430,348$ 27,711,830$ 80,484,141$ 1,798,638$ 135,424,957$ City of Lakeville, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 52 Page 280 of 420 City of Lakeville, Minnesota Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Governmental Funds For the Year Ended December 31, 2025 Amounts reported for governmental activities in the statement of activities are different because Net Changes in Fund Balances - Total Governmental Funds 7,320,216$ Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Depreciation (24,270,053) Capital outlay 56,131,388 Developer contributions 10,149,465 Governmental funds report projects in capital project funds. Some of the capital assets constructed in the project will be maintained in business-type activity funds. The assets are reported as a transfer from the governmental activities to the business-type activities (3,961,034) Governmental funds report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the disposition of the assets book value is included in the total gain (loss) in the statement of activities. Loss on disposal of assets (5,829,713) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds are reported with governmental activities. Investment earnings 25,490 Consolidation of internal service fund activities with governmental activities 473,791 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Taxes, assessments and intergovernmental revenues (3,449,129) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are delayed and amortized in the statement of activities. Debt issued (31,166,903) Bond repayments 12,910,000 Note repayments 1,447,489 Amortization of deferred charges on refunding 163,400 Premium on bonds issued (1,031,777) Long-term pension activity is not reported in governmental funds. Pension expense 1,236,753 Pension revenue from state contributions 112,078 Interest on long-term debt in the statement of activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due, and this requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.1,236,929 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Other postemployment benefits (312,798) Change in Net Position - Governmental Activities 21,185,592$ The notes to the financial statements are an integral part of this statement. 53 Page 281 of 420 Governmental Activities - Internal Assets Liquor Utility Totals Service Funds Current Assets Cash and investments 3,287,886$ 34,285,453$ 37,573,339$ 1,111,455$ Receivables Accrued interest 18,532 203,522 222,054 6,215 Accounts - 4,831,413 4,831,413 14,762 Special assessments - delinquent - 114,863 114,863 - Special assessments - deferred - 729,659 729,659 - Inventories 1,982,106 410,893 2,392,999 - Prepaid items - 12,206 12,206 - Total Current Assets 5,288,524 40,588,009 45,876,533 1,132,432 Noncurrent Assets Capital assets Land 3,087,882 586,311 3,674,193 - Construction in progress - 123,477 123,477 - Buildings and improvements 8,289,039 26,324,089 34,613,128 - Machinery and equipment 800,192 8,834,912 9,635,104 - Infrastructure - 279,633,108 279,633,108 - Right-to-use lease asset 3,989,676 - 3,989,676 - Total Capital Assets 16,166,789 315,501,897 331,668,686 - Less Accumulated Depreciation and Amortization (3,160,216) (108,376,262) (111,536,478) - Net Capital Assets 13,006,573 207,125,635 220,132,208 - Total Noncurrent Assets 13,006,573 207,125,635 220,132,208 - Total Assets 18,295,097 247,713,644 266,008,741 1,132,432 Deferred Outflows of Resources Deferred pension resources 189,708 203,640 393,348 - Deferred other postemployment benefit resources 47,001 32,830 79,831 - Total Deferred Outflows of Resources 236,709 236,470 473,179 - City of Lakeville, Minnesota Statement of Net Position (Continued on the Following Page) Proprietary Funds December 31, 2025 Business-Type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 54 Page 282 of 420 Governmental Activities - Internal Liquor Utility Totals Service Funds Liabilities Current Liabilities Accounts payable 733,808$ 382,077$ 1,115,885$ 9,466$ Accrued salaries and withholdings payable 68,690 68,592 137,282 - Contracts payable - 4,253 4,253 - Due to other governments - 93 93 - Accrued interest payable 2,669 96,087 98,756 - Deposits payable 45,097 10,700 55,797 - Unearned revenue 760 283,775 284,535 - Bonds payable - current - 1,105,000 1,105,000 - Lease and financed purchase payable - current 613,608 - 613,608 - Other postemployment benefits payable - current 1,408 984 2,392 - Total Current Liabilities 1,466,040 1,951,561 3,417,601 9,466 Noncurrent Liabilities Bonds payable - 5,749,192 5,749,192 - Compensated absences payable 265,755 421,810 687,565 3,584,350 Leases and financed purchases payable 2,648,164 - 2,648,164 - Net pension liability 752,827 808,112 1,560,939 - Other postemployment benefits payable 93,619 65,392 159,011 - Total Noncurrent Liabilities 3,760,365 7,044,506 10,804,871 3,584,350 Total Liabilities 5,226,405 8,996,067 14,222,472 3,593,816 Deferred Inflows of Resources Deferred pension resources 523,956 562,433 1,086,389 - Deferred other postemployment benefit resources 17,578 12,278 29,856 - Total Deferred Inflows of Pension Resources 541,534 574,711 1,116,245 - Net Position Net investment in capital assets 9,744,801 200,271,443 210,016,244 - Unrestricted 3,019,066 38,107,893 41,126,959 (2,461,384) Total Net Position 12,763,867$ 238,379,336$ 251,143,203$ (2,461,384)$ Business-Type Activities - Enterprise Funds City of Lakeville, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 55 Page 283 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 56 Page 284 of 420 Governmental Activities - Internal Liquor Utility Totals Service Funds Operating Revenues Sales 21,989,939$ -$ 21,989,939$ -$ Cost of sales (15,737,400) - (15,737,400) - Gross Profit 6,252,539 - 6,252,539 - Charges for services - 22,477,357 22,477,357 604,121 Special assessments - 144,144 144,144 - Other revenue - - - 281,746 Total Operating Revenues 6,252,539 22,621,501 28,874,040 885,867 Operating Expenses Personnel services 2,861,390 3,667,550 6,528,940 (22,589) Materials and supplies 79,707 757,893 837,600 - Other charges and services 1,341,047 11,080,825 12,421,872 706,610 Depreciation and amortization 701,377 7,020,415 7,721,792 - Total Operating Expenses 4,983,521 22,526,683 27,510,204 684,021 Operating Income (Loss)1,269,018 94,818 1,363,836 201,846 Nonoperating Revenues (Expenses) Intergovernmental - 226,981 226,981 - Investment income Interest earnings 99,565 970,887 1,070,452 25,490 Increase (decrease) in fair market value 81,565 744,881 826,446 20,132 Interest and other charges (33,468) (79,236) (112,704) - Gain (loss) on disposal of capital assets (27,973) (226,444) (254,417) - Miscellaneous revenue 103,092 739,681 842,773 - Total Nonoperating Revenues (Expenses)222,781 2,376,750 2,599,531 45,622 Income (Loss) Before Contributions and Transfers 1,491,799 2,471,568 3,963,367 247,468 Capital Contributions - from developers - 9,304,958 9,304,958 - Capital Contributions - from Governmental Funds - 3,961,034 3,961,034 - Transfers Out (1,712,651) (584,445) (2,297,096) - Change in Net Position (220,852) 15,153,115 14,932,263 247,468 Net Position, January 1 12,984,719 223,226,221 236,210,940 (2,708,852) Net Position, December 31 12,763,867$ 238,379,336$ 251,143,203$ (2,461,384)$ 14,932,263$ Change in net position as shown above Adjustment to reflect the consolidation of (251,813) activities to the enterprise funds. 14,680,450$ Change in net position - business-type activities Business-Type Activities - Enterprise Funds City of Lakeville, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 57 Page 285 of 420 Governmental Activities - Internal Liquor Utility Totals Service Funds Cash Flows from Operating Activities Receipts from customers and users 22,091,876$ 23,264,507$ 45,356,383$ -$ Receipts from interfund services provided - - - 885,867 Payments to suppliers (17,184,039) (12,016,752) (29,200,791) (701,352) Payments to employees (2,950,303) (3,838,345) (6,788,648) (244,452) Net Cash Provided (Used) by Operating Activities 1,957,534 7,409,410 9,366,944 (59,937) Cash Flows from Noncapital Financing Activities Intergovernmental receipts - 226,981 226,981 - Other nonoperating receipts - 739,681 739,681 - Transfers out (1,712,651) (584,445) (2,297,096) - Net Cash Provided (Used) by Noncapital Financing Activities (1,712,651) 382,217 (1,330,434) - Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (129,348) (3,705,089) (3,834,437) - Proceeds from the sale of assets - 6,815 6,815 - Principal paid on debt (600,306) (1,130,000) (1,730,306) - Interest paid on debt (33,729) (258,787) (292,516) - Net Cash Flows Provided (Used) by Capital and Related Financing Activities (763,383) (5,087,061) (5,850,444) - Cash Flows from Investing Activities Investment interest 179,321 1,676,518 1,855,839 45,786 Net Increase (Decrease) in Cash and Cash Equivalents (339,179) 4,381,084 4,041,905 (14,151) Cash and Cash Equivalents, January 1 3,627,065 29,904,369 33,531,434 1,125,606 Cash and Cash Equivalents, December 31 3,287,886$ 34,285,453$ 37,573,339$ 1,111,455$ City of Lakeville, Minnesota Statement of Cash Flows (Continued on the Following Page) Proprietary Funds For the Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 58 Page 286 of 420 Governmental Activities - Internal Liquor Utility Totals Service Funds Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income 1,269,018$ 94,818$ 1,363,836$ 201,846$ Adjustments to reconcile operating income to net cash provided (used) by operating activities Miscellaneous revenues 103,092 - 103,092 - Depreciation and amortization 701,377 7,020,415 7,721,792 - (Increase) decrease in assets and deferred outflows of resources Accounts receivable - 473,097 473,097 - Special assessments receivable - (6,066) (6,066) - Prepaid items - 2,208 2,208 - Inventories 103,044 (80,556) 22,488 - Deferred pension resources 52,477 45,127 97,604 - Deferred other postemployment benefit resources (47,001) (32,830) (79,831) - Increase (decrease) in liabilities and deferred inflows of resources Accounts payable (28,187) (15,162) (43,349) 5,258 Accrued salaries and withholdings payable 10,002 9,721 19,723 - Compensated absences payable 26,640 27,249 53,889 (267,041) Deposits payable 2,302 800 3,102 - Unearned revenue (1,155) 175,975 174,820 - Net pension liability (86,423) (58,788) (145,211) - Other postemployment benefits payable (9,069) (35,712) (44,781) - Contracts payable - (85,371) (85,371) - Deferred pension resources (156,161) (137,840) (294,001) - Deferred other postemployment benefit resources 17,578 12,278 29,856 - Due to other governments - 47 47 - Net Cash Provided (Used) by Operating Activities 1,957,534$ 7,409,410$ 9,366,944$ (59,937)$ Supplemental Schedule of Noncash Capital and Related Financing Activities Amortization of discounts / (premiums) on bonds -$ 156,538$ 156,538$ -$ Disposal of capital assets (61,971)$ (787,682)$ (849,653)$ -$ Disposal of related accumulated depreciation 34,000$ 554,423$ 588,423$ -$ Capital contributions from other funds -$ 3,961,034$ 3,961,034$ -$ Capital contributions from developers -$ 9,304,958$ 9,304,958$ -$ City of Lakeville, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 59 Page 287 of 420 Custodial Funds Assets Cash and investments 20,555$ Accounts receivable 758 Total Assets 21,313$ Liabilities Accounts payable 2,248 Net Position Restricted for: Individuals, organizations, and other governments 19,065$ City of Lakeville, Minnesota Statement of Fiduciary Net Position Custodial Funds December 31, 2025 The notes to the financial statements are an integral part of this statement. 60 Page 288 of 420 Custodial Funds Additions Contributions 22,776$ Deductions Payments to vendors (23,613) Net Increase (Decrease) in Fiduciary Net Position (837) Net Position, January 1 19,902 Net Position, December 31 19,065$ City of Lakeville, Minnesota Statement of Changes in Net Position Custodial Funds For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 61 Page 289 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 62 Page 290 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Lakeville (the City) is a municipal corporation of the “Optional Plan A” form of government defined in Minnesota Statutes. The City Council, composed of an elected mayor and four elected trustees or council members, exercises legislative authority and determines all matters of policy. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The financial statements present the City and its component units. The City includes all funds, organizations, institutions, agencies, departments, and offices that are not legally separate from such. Component units are legally separate organizations for which the elected officials of the City are financially accountable and are included within the basic financial statements of the City because of the significance of their operational or financial relationships with the City. The City is considered financially accountable for a component unit if it appoints a voting majority of the organization’s governing body and it is able to impose its will on the organization by significantly influencing the programs, projects, activities or level of services performed or provided by the organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City. The criterion that results in the HRA being reported as a blended component unit include 1) the board members are members of the City Council and 2) the operational responsibility of the HRA rests with the management of the City. The HRA does not issue separate financial statements so they are included in the financial section of this report. As a result of applying the component unit definition criteria above, a certain organization has been defined and is presented in this report as follows: Blended Component Units - Reported as if they were part of the City. For the category above, the specific entity is identified as follows: 1. Blended Component Unit The Housing and Redevelopment Authority (HRA) of Lakeville, Minnesota was created by the City to provide housing and redevelopment assistance to its citizens. The HRA provides this assistance through the administration of various programs. The HRA is governed by a five-member Board of Commissioners comprised of the City of Lakeville Council in accordance with Minnesota Statutes 469.003, Subdivision 6. Although it is legally separate from the City, the HRA is reported as if it were a part of the City (blended) because the City Council is also the HRA governing board. The Commissioners’ terms of office coincide with those of the City Council members. The City Administrator serves as the HRA Executive Director. The operational responsibility for the HRA rests with management of the City. During fiscal year 2006, the HRA issued $9,230,000 in Ice Arena Lease Revenue Bonds, Series 2006, to finance the construction of the single sheet Hasse ice arena facility. The Ice Arena Lease Revenue Bonds, Series 2006 were subsequently refunded in 2016. Debt service will be payable from equal lease payments to be made by the City pursuant to the lease agreement between the HRA and the City, and in conjunction with the joint powers agreement between the City and Independent School District No. 194. In 2017, the HRA issued $2,255,000 in Lease Revenue Liquor Enterprise Refunding Bonds, Series 2017A, to refund the existing liquor revenue bonds through a purchase (and subsequent lease-back) of the liquor store land and building. Debt service will be payable from lease payments made by the City’s liquor enterprise fund. These HRA bond obligations are combined and presented separately in the debt service funds as debt supported by HRA lease revenue. The HRA has not issued separate financial statements for the period ending December 31, 2025. Information on nonfinancial matters regarding the HRA can be obtained at the City’s Finance offices. 63 Page 291 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the City is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Fiduciary funds are presented in the fiduciary fund financial statements by type; pension (or other benefit) trust, and custodial. Custodial Funds are presented in the fiduciary fund financial statement. Since, by definition, fiduciary fund assets are held for the benefit of a third party (other local governments, private parties, etc.) and cannot be used for activities or obligations of the City, these Funds are not incorporated into the government-wide statements. The Internal Service fund is presented in the proprietary fund financial statements. Because the principal user of internal services is the City’s governmental activities, the financial statements of the Internal Service Fund are consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, franchise taxes, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 64 Page 292 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which the resources are measurable and become available. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as unearned revenue. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The City reports the following major governmental funds: The General fund is the City’s primary operating fund. It is used to account for all financial resources except for those required to be accounted for in another fund. This fund records revenues such as property taxes, licenses, and permits, intergovernmental revenues, charges for services, fines, and investment income. Most of the day-to-day operations of the City are financed from this fund. The Debt Service fund is used to account for the accumulation of resources that are restricted for the payment of principal, interest, and related costs on long-term debt of the governmental funds. The Capital Projects fund is used to account for the accumulation and disbursement of funds for major capital projects and facilities including the construction or improvement of public buildings, Minnesota Municipal State-aid funded street construction, and complex construction contracts that involve multiple financing resources from the City and other government entities. The City reports the following major proprietary funds: The Liquor fund accounts for the retail operations of four off-sale liquor stores. The Utility fund accounts for water, sanitary sewer, street lighting, and environmental resources services provided to City customers. Nonmajor Governmental Funds Special Revenue funds account for revenue derived from specific revenue sources that are legally restricted or committed to expenditures for specific purposes. For additional information on specific Special Revenue funds, refer to the Special Revenue fund statements. 65 Page 293 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) Additionally, the City reports the following fund types: Internal Service funds account for the City’s property, liability, worker’s compensation and the governmental portion of compensated absences provided to other departments within the City. Fiduciary Funds: Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The City’s Custodial funds account for the receipt and remittance of monies held by the City on behalf of legally separate entities . As a general rule the effect of interfund activity has been eliminated from government -wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payment in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds and of the City’s internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance Deposits and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The proprietary funds’ portion in the government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statements of cash flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. 66 Page 294 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) The City may invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and having received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and having a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated “A” or better; revenue obligations rated “AA” or better. 4. General obligations of the Minnesota Housing Finance Agency rated “A” or better. 5. Obligations of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks, corporations, or their Canadian subsidiaries, of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a “depository” by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. 9. Guaranteed Investment Contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of December 31, 2025: • U.S. Treasury Securities of $5,241,420 are valued using quoted market prices (Level 1 inputs) • Negotiable certificates of deposit of $4,158,511 are valued using a matrix pricing model (Level 2 inputs) • Government Agency Securities and Municipal Securities of $133,668,140 are valued using a matrix pricing model (Level 2 inputs) 67 Page 295 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) The Minnesota Municipal Money Market Fund is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities and Exchange Commission (SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City’s investment in this pool is valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days ’ interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. Financ ial statements of the 4M Fund can be obtained by contacting the League of Minnesota Cities Finance Department at 145 University Avenue West, St. Paul, Minnesota, 55103-2044 or by calling (651) 281-1200. Investment Policy The City’s investment policy incorporates Minnesota statutes as described above which reduces the City’s exposure to credit, custodial credit and interest rate risks. Specific risk information for the City is as follows: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota Statutes and the City’s investment policy limit the City’s investments to the list above. • Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s policy states all deposits must be collateralized in compliance with Minnesota Statutes 118A with all deposits being collateralized at 110% of deposits in excess of FDIC insurance. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The City’s policy states the City will attempt to diversify its investments according to type, maturity, and institution. The policy state s the portfolio shall not contain more than 50% of the portfolio value in any one institution. At December 31, 2025, the City’s Investment portfolio includes the following securities of single issuers exceeding 5%: 4M Fund – 22% Federal Home Loan Bank – 7.1% • Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the policy states the City will limit the portion of the portfolio with maturities greater than five years to 75% of the portfolio. Statement of Cash Flows For the purpose of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. Property Taxes The City Council annually adopts a tax levy and certifies it to the County in December for collection in the following year. The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by the property owners in two installments. Property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Dakota County provides settlements to cities and other taxing districts three times a year. 68 Page 296 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) Delinquent taxes receivable includes the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year-end in the governmental fund financial statements. Accounts Receivable When necessary, the City utilizes an allowance for uncollectible accounts to value its receivables. However, the City considers all of its current receivables to be collectible. Delinquent utility charges are annually certified to the county for collection. As a result, there is no allowance for uncollectible amounts in the other enterprise funds. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivable upon certification to the County. Special assessments are recognized as revenue when they are received in cash or within 60 days after year end. All governmental special assessments receivable are offset by a deferred inflow of resources in the fund financial statements. Interfund Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “interfund receivables/payables” (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Inventories and Prepaid Items Inventories of materials and supplies are recorded at cost, which approximates market, using the first-in, first out (FIFO) method. Inventories consist of expendable supplies held for consumption. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The City uses the consumption method to account for all prepaid items. Lease Receivable The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. This includes infrastructure acquired prior to the implementation of GASB Statement No. 34. 69 Page 297 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000. Such purchased assets are recorded at historical cost or estimated historical cost if historical cost is not available. Donated capital assets are recorded at acquisition value at the date of donation. The City reports infrastructure assets on a network and subsystem basis. Accordingly, the amounts spent for the construction or acquisition of infrastructure assets are capitalized and reported in the government-wide financial statements. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and improvements 50 to 75 Machinery and equipment 3 to 20 Other improvements 10 to 50 Infrastructure 20 to 50 Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category. These items, deferred pension resources and deferred other postemployment benefit resources are reported only in the statements of net position. The items result from actuarial calculations and current year pension contributions and Other Post-Employment Benefit contributions made subsequent to the measurement date. Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused leave benefits as either paid-time-off (PTO), or vacation and sick leave. Under the City’s personnel policies and collective bargaining contracts, City employees are granted leave benefits in varying amounts based on length of service. PTO accrual vary from 18 to 30 days per year, vacation accruals vary from 10 to 20 days per year, and sick leave accrues at a rate of 12 days per year. As benefits accrue to the employees, the accumulated PTO, vacation and vested sick leave is reported as an expense and liability in the government-wide and proprietary fund financial statements. Accrued PTO, vacation and a percentage of sick leave is paid to employees upon termination (severance) only if they have vested and is reported as an expenditure in the governmental fund that will pay for it. The liability for compensated absences reported in the government-wide and proprietary fund statements consists of leave that has not been used that is attributable to services already rendered, accumulated and is more likely than not to be used for time off or otherwise paid in cash. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash. 70 Page 298 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) Postemployment Benefits other than Pensions Under Minnesota statute 471.61, subdivision 2b., public employers must allow retirees and their dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a Minnesota public pension plan, 2) Coverage must continue in a group plan until age 65, and retirees must pay no more than the group premium, and 3) Retirees may obtain dependent coverage immediately before retirement. All premiums are funded on a pay-as-you-go basis. The liability was actuarially determined, in accordance with GASB 75, at January 1, 2025 valuation date. The measurement date is January 1, 2025. The General fund is typically used to liquidate governmental other postemployment benefits payable. Long-term Obligations In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. The recognition of bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as an expense in the period incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension liability. The total pension expense for the General Employees Retirement Plan (GERP), Public Employee Police & Fire Plan (PEPFP), Defined Contribution Plan (DCP) and Lakeville Fire Relief Association is as follows: Public Employees Retirement Association of Minnesota (PERA)Fire Relief Total All GERP PEPFP DCP Association Plans City's proportionate share (134,282)$ 1,929,994$ 2,787$ 1,142,752$ 2,941,251$ Proportionate share of State's contribution (22,081) 128,383 - - 106,302 Total pension expense (156,363)$ 2,058,377$ 2,787$ 1,142,752$ 3,047,553$ Unearned Revenue The City's unearned revenue consists of grant revenue, administrative costs related to the administration and tracking of special assessments, and shared space rentals. 71 Page 299 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) Deferred Inflows of Resources In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has the following items listed below reported in the statement of net position and governmental funds balance sheet. • Unavailable revenues are presented in the governmental funds from four sources: grants, property taxes, interest and special assessments. These arise only under a modified accrual basis of accounting that qualifies for reporting in this category. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. • Deferred pension resources are reported only in the statements of net position and result from actuarial calculations. • Deferred other postemployment benefit resources are reported only in the statements of net position and result from actuarial calculations. • Deferred lease resources are reported in the governmental funds balance sheet and are deferred to the period the amounts become available. This item is also reported in the statement of net position. • Deferred gain on refunding is reported only in the statements of net position and is amortized over the life of the related bonds. Fund Balance In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These classifications are defined as follows: Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council, which is the City’s highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established by the City Council itself or by an official to which the governing body delegates the authority. The City Council has adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City Administrator. Unassigned - These are residual amounts in the General Fund not reported in any other classification. The General Fund is the only fund that can report a positive unassigned fund balance. Other funds would report a negative unassigned fund balance should the total of nonspendable, restricted and committed fund balances exceed the total net resources of that fund. 72 Page 300 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 1: Summary of Significant Accounting Policies (Continued) The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance is available. Additionally, the City would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The City has formally adopted a fund balance policy for the General fund. The City’s policy is to maintain an unrestricted (committed, assigned and unassigned) fund balance of an amount not less than 40 percent and not greater than 50 percent of the subsequent year’s budgeted operating expenditures of the General Fund. For 2025, the unrestricted fund balance of the General Fund was 54.1% of the subsequent year’s budgeted expenditures. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation and amortization reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position - All other net position that do not meet the definition of “restricted” or “net investment in capital assets”. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenue and expenditures/expense during the reporting period. Actual results could differ from those estimates. Note 2: Stewardship, Compliance and Accountability A. Budgetary Information The budget for each fund is prepared on the same basis of accounting as the fund financial statements. Legal budgetary control is at the fund level. The City adopts an annual budget for the General fund, Communications and Opioid Settlement special revenue funds, Debt Service fund, and Capital Projects fund. Budget amounts are presented as originally adopted or amended. The City has established budgetary control at the department level in the General fund. Management may amend the line items within the departments in the General fund without seeking approval of the City Council. Budgeted expenditure appropriations lapse at year-end. 73 Page 301 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 2: Stewardship, Compliance and Accountability (Continued) B. Deficit Net Position As of December 31, 2025, the following funds reported deficit net position: Amount Governmental - Internal Service funds 2,461,384$ Fund The net position deficits are expected to be eliminated with future internal revenues or transfers from other funds. Note 3: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which are rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which are rated “AA” or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the City. 74 Page 302 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) At year end, the City’s carrying amount of deposits and bank balance were $0. All of the City’s available funds are swept into various investment accounts. Of the bank balance, $500,000 was covered by federal deposit insurance. The remaining balance was covered by collateral held by the pledging financial institution’s trust department in the City’s name. Investments As of December 31, 2025, the City had the following investments that are insured or registered, or securities held by the City’s agent in the City’s name: Credit Segmented Quality/Time Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs 4M Fund N/A less than 1 year 39,213,690$ -$ -$ -$ Broker Money Market Funds N/A less than 1 year 14,950 - - - Total Pooled Investments 39,228,640 - - - Non-pooled Investments at Amortized Costs U.S. Treasury Securities AA+less than 1 year 1,486,260 1,486,260 - - U.S. Treasury Securities AA+1 to 5 years 3,755,160 3,755,160 - - Negotiable certificates of deposit NA less than 1 year 1,693,156 - 1,693,156 - Negotiable certificates of deposit NA 1 to 5 years 2,465,355 - 2,465,355 - Government Agency Securities AA+less than 1 year 25,916,107 - 25,916,107 - Government Agency Securities AA+1 to 5 years 60,053,541 - 60,053,541 - Government Agency Securities AA+more than 5 years 12,565,295 - 12,565,295 - Municipal Securities A+more than 5 years 377,693 - 377,693 - Municipal Securities AA less than 1 year 1,887,524 - 1,887,524 - Municipal Securities AA 1 to 5 years 6,781,109 - 6,781,109 - Municipal Securities AA more than 5 years 1,359,172 - 1,359,172 - Municipal Securities AA-less than 1 year 1,235,383 - 1,235,383 - Municipal Securities AA-1 to 5 years 3,079,276 - 3,079,276 - Municipal Securities AA+less than 1 year 1,994,250 - 1,994,250 - Municipal Securities AA+1 to 5 years 5,862,905 - 5,862,905 - Municipal Securities AA+more than 5 years 2,135,652 - 2,135,652 - Municipal Securities AAA less than 1 year 2,242,827 - 2,242,827 - Municipal Securities AAA 1 to 5 years 6,171,349 - 6,171,349 - Municipal Securities AAA more than 5 years 2,006,057 - 2,006,057 - Total Investments 182,296,711$ 5,241,420$ 137,826,651$ -$ Types of Investments Fair Value Measurement Using Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. (1) Ratings are provided by Standard & Poor’s where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. The City has no level 3 investments. 75 Page 303 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) A reconciliation of cash and investments as shown on the statement of net position for the City follows: Investments 182,296,711$ Petty Cash 400 Change Funds 17,350 Total 182,314,461$ Primary Government Governmental activities 144,720,567$ Business-type activities 37,573,339 Fiduciary activities 20,555 Total 182,314,461$ B. Lease Receivable The City, acting as lessor, leases land and water tower space for cellular services as well as ice arena space under long- term, non-cancelable lease agreements. The leases expire at various dates through 2056. During the year ended December 31, 2025, the City recognized $616,399 and $132,416 in lease revenue and interest revenue, respectively, pursuant to these contracts. Certain leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. The lease receivable balances are summarized as follows: Current Year Beginning Inflow of Balance at Description Balance Resources Year End Antenna Leases 37,979$ 12,506$ 27,743$ Liquor Capital Lease 815,000 - 550,000 Antenna Leases 6,394,766 487,786 6,044,069 Hockey/Figure Skating Leases 1,660,446 85,816 1,583,720 Ground Lease 436,455 30,232 411,336 Total 8,616,868$ 76 Page 304 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) C. Capital Assets Capital asset activity for the year ended December 31, 2025 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not Being Depreciated Land 37,683,547$ 5,697,695$ -$ 43,381,242$ Historical treasures 218,700 - - 218,700 Construction in progress 14,128,422 22,070,187 (2,604,273) 33,594,336 Total Capital Assets not Being Depreciated 52,030,669 27,767,882 (2,604,273) 77,194,278 Capital Assets Being Depreciated Buildings and improvements 77,751,280 446,530 (609,516) 77,588,294 Machinery and equipment 31,499,293 4,652,587 (1,646,390) 34,505,490 Other improvements 22,782,454 1,838,081 (210,487) 24,410,048 Infrastructure Streets 240,482,212 17,311,451 (6,375,050) 251,418,613 Storm sewer 144,176,648 9,309,962 (1,289,639) 152,196,971 Parks 45,799,613 3,597,599 (493,162) 48,904,050 Total Capital Assets Being Depreciated 562,491,500 37,156,210 (10,624,244) 589,023,466 Less Accumulated Depreciation for Buildings and improvements (24,920,698) (2,250,341) 468,602 (26,702,437) Machinery and equipment (20,246,923) (3,707,949) 1,639,448 (22,315,424) Other improvements (7,700,312) (1,277,799) 190,084 (8,788,027) Infrastructure Streets (114,223,972) (10,785,778) 1,916,284 (123,093,466) Storm sewer (38,875,965) (4,282,550) 225,415 (42,933,100) Parks (21,071,723) (1,965,636) 354,698 (22,682,661) Total Accumulated Depreciation (227,039,593) (24,270,053) 4,794,531 (246,515,115) Total Capital Assets Being Depreciated, Net 335,451,907 12,886,157 (5,829,713) 342,508,351 Governmental Activities Capital Assets, Net 387,482,576$ 40,654,039$ (8,433,986)$ 419,702,629$ 77 Page 305 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital Assets not Being Depreciated/Amortized Land 3,672,969$ 1,224$ -$ 3,674,193$ Construction in progress 37,894 94,380 (8,797) 123,477 Total Capital Assets not Being Depreciated 3,710,863 95,604 (8,797) 3,797,670 Capital Assets Being Depreciated/Amortized Buildings and improvements 34,490,655 208,374 (85,901) 34,613,128 Machinery and equipment 9,071,740 751,390 (188,026) 9,635,104 Right-to-use assets 3,989,676 - - 3,989,676 Infrastructure Environmental resources 563,963 286,004 - 849,967 Water 156,657,556 9,377,241 (362,281) 165,672,516 Sanitary sewer 106,933,457 6,390,616 (213,448) 113,110,625 Total Capital Assets Being Depreciated/Amortized 311,707,047 17,013,625 (849,656) 327,871,016 Less Accumulated Depreciation/Amortization for Buildings and improvements (13,189,276) (835,467) 39,591 (13,985,152) Machinery and equipment (3,401,048) (723,213) 100,369 (4,023,892) Right-to-use assets (1,062,530) (354,176) - (1,416,706) Infrastructure Environmental resources (55,462) (32,752) - (88,214) Water (49,284,120) (3,520,117) 285,076 (52,519,161) Sanitary sewer (37,410,676) (2,256,067) 163,390 (39,503,353) Total Accumulated Depreciation/Amortization (104,403,112) (7,721,792) 588,426 (111,536,478) Total Capital Assets Being Depreciated/Amortized, Net 207,303,935 9,291,833 (261,230) 216,334,538 Business-type Activities Capital Assets, Net 211,014,798$ 9,387,437$ (270,027)$ 220,132,208$ Depreciation and amortization expense was charged to functions/programs of the City as follows: Governmental Activities General government 473,636$ Public safety 2,118,521 Public works 16,606,279 Parks and recreation 5,071,617 Total Depreciation Expense - Governmental Activities 24,270,053$ Business-type Activities Liquor fund 701,377$ Utility fund 7,020,415 Total Depreciation/Amortization Expense - Business-type Activities 7,721,792$ 78 Page 306 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) Construction Commitments The City has active construction projects as of December 31, 2025. The projects include various street and road improvements and public facilities projects. At year end the City’s commitments with contractors are as follows: Spent Remaining to Date Commitment First Center 9,548,997$ 13,625,699$ Grand Prairie Park 17,865,871 1,971,221 Total 27,414,868$ 15,596,920$ Project D. Interfund Receivables, Payables and Transfers The composition of interfund transfers for the year ended December 31, 2025 is as follows: Debt Capital General Service Projects Total Transfer Out General -$ -$ 1,850,000$ 1,850,000$ Debt Service - - 1,053,598 1,053,598 Capital Projects - 685,846 - 685,846 Nonmajor governmental 24,500 - 4,155 28,655 Utility - 522,045 62,400 584,445 Liquor 30,000 746,800 935,851 1,712,651 Total Transfers 54,500$ 1,954,691$ 3,906,004$ 5,915,195$ Fund Transfers In The city annually budgets transfers for specific purposes. Annual transfers include transfers designated as a percentage of annual revenues, transfers made to cover funds annual operations, transfers for debt service payments, transfers made as part of capital improvement plans and other transfers made for various reasons. 79 Page 307 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) E.Components of Long-term Debt The City had the following long-term liabilities outstanding at December 31, 2025: Interest Balance at Maturities Rate Year End Governmental Activities General Obligation Bonds 2026-2046 1.75%-5.00%88,565,000$ General Obligation Improvement Bonds 2029-2038 0.50%-5.00%44,900,000 State-Aid Bonds 2036 1.75%-5.00%3,045,000 G.O. Water Revenue Bonds 2034 2.00%-5.00%4,635,000 Tax Abatement Bonds 2031-2042 1.00%-5.00%15,245,000 Met Council Loans --2,956,795 Dakota County Advances --12,643,563 Total Governmental-type debt 171,990,358$ Business-Type Activities Water Revenue Bonds 2028-2034 1.50%-5.00%6,405,000 Street Light Revenue Bonds 2026 5.00%50,000 Financed Purchase 2027 2.00-3.00%550,000 Lease Liability 2038 1.24%2,711,772 Total Business-type debt 9,716,772$ Description General Obligation Bonds The City’s general obligation bonds are supported primarily from revenues derived from property tax levies, special assessment levies, tax increment levies, state-aid street revenue, water connection revenue charges, ice arena operations, and contributions by an organization conducting lawful gaming at approved locations. These bonds are backed by the full-faith and credit of the City. The annual service requirements to maturity for the general obligation bonds are as follows: Year Ending December 31,Principal Interest Total 2026 5,950,000$ 3,916,170$ 9,866,170$ 2027 5,970,000 3,362,358 9,332,358 2028 6,265,000 3,093,186 9,358,186 2029 6,380,000 2,816,764 9,196,764 2030 6,715,000 2,532,049 9,247,049 2031-2035 23,965,000 9,113,533 33,078,533 2036-2040 16,190,000 4,961,170 21,151,170 2041-2045 15,825,000 1,721,341 17,546,341 2046 1,305,000 26,916 1,331,916 Total 88,565,000$ 31,543,487$ 120,108,487$ Governmental Activities 80 Page 308 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) The annual service requirements to maturity for the General Obligation Tax Abatement bonds are as follows: Year Ending December 31,Principal Interest Total 2026 1,080,000$ 319,110$ 1,399,110$ 2027 1,120,000 286,920 1,406,920 2028 1,145,000 253,356 1,398,356 2029 1,185,000 218,403 1,403,403 2030 1,230,000 185,154 1,415,154 2031-2035 4,580,000 613,988 5,193,988 2036-2040 3,765,000 284,191 4,049,191 2041-2042 1,140,000 17,731 1,157,731 Total 15,245,000$ 2,178,853$ 17,423,853$ Governmental Activities The annual service requirements to maturity for the General Obligation State Aid bonds are as follows: Year Ending December 31,Principal Interest Total 2026 230,000$ 104,644$ 334,644$ 2027 240,000 94,094 334,094 2028 250,000 84,294 334,294 2029 260,000 75,394 335,394 2030 265,000 67,353 332,353 2031-2035 1,475,000 195,763 1,670,763 2036 325,000 6,500 331,500 Total 3,045,000$ 628,042$ 3,673,042$ Governmental Activities General Obligation Special Assessment Improvement Bonds These Bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. The annual service requirements to maturity for the general obligation bonds are as follows: Year Ending December 31,Principal Interest Total 2026 5,955,000$ 1,641,988$ 7,596,988$ 2027 6,125,000 1,379,093 7,504,093 2028 6,290,000 1,131,698 7,421,698 2029 5,800,000 896,113 6,696,113 2030 5,090,000 677,169 5,767,169 2031-2035 14,140,000 1,238,003 15,378,003 2036-2038 1,500,000 43,341 1,543,341 Total 44,900,000$ 7,007,405$ 51,907,405$ Governmental Activities 81 Page 309 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) Revenue Bonds Revenue bonds are not general obligations of the City and accordingly are not backed by the full-faith and credit of the City. The annual service requirements to maturity for the revenue bonds are as follows: Governmental Activities Year Ending December 31,Principal Interest Total 2026 495,000$ 120,200$ 615,200$ 2027 475,000 110,500 585,500 2028 480,000 100,650 580,650 2029 495,000 88,125 583,125 2030 505,000 73,125 578,125 2031-2033 2,185,000 133,575 2,318,575 Total 4,635,000$ 626,175$ 5,261,175$ Governmental Activities Metropolitan Council Loan Agreements On February 21, 2006, the City entered into a loan agreement with the Metropolitan Council for the purpose of acquiring property for a commuter vehicle park and pool lot located within a proposed state trunk highway right-of-way. The Metropolitan Council provided a loan to the City in the amount of $1,466,300 to finance the acquisition of the property. In 2025, the City made no payments on the loan. As of December 31, 2025, the balance of the loan is $1,159,843. On January 3, 2017, the City entered into another loan agreement with the Metropolitan Council for the purpose of acquiring property within a proposed state trunk highway right-of-way. The amount of the loan was $737,171, and the city made no payments on the loan in 2025. In December of 2021, the City entered into another loan agreement with the Metropolitan Council for the purpose of acquiring property within a proposed state trunk highway right-of-way. The amount of the loan was $950,000, with subsequent additions of $51,842 in 2022 and $57,939 in 2023, for a total loan of $1,059,781. The City made no payments on the loan in 2025. No Specific assets are pledged as collateral for the debt, but there are restrictions on the related properties acquired with the loan proceeds. The loans (all free of interest charge) will be discharged by the Metropolitan Council upon the conveyance of the properties to the highway authority at an undetermined future date. If the City determined it would not use the land for the highway project and wanted to sell it, it would owe the Met council the fair market value of the property and, once paid, the loan would be forgiven. If the city breached the contract, essentially using the land for something other than was detailed in the agreements use of funds, the City would owe the Met Council the purchase price of the property (which is equal to the loan amount), and the loan would be forgiven. 82 Page 310 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) Dakota County Loans Payable During 2020, the City entered into two new agreements with Dakota County, where as Dakota County delayed repayment of project costs. One agreement related to the construction on 179th Street between CSAH 23 and CSAH 31, with the City’s total share to date of $2,854,377 being recorded as a new loan in 2020. Additions of $27,923 were made to this loan in 2021, bringing the total balance payable to $2,882,300, payment of $2,526,000 was made in 2023 and additions to the loan of $4,449 in 2023 bringing the balance to $360,748. This loan requires the City to pay the County for the City’s share of the project’s costs after May 1, 2023. There was a payment made on this loan in 2025 for 360,748, fully paying off the loan as of December 31, 2025. During 2021, the City entered into a third agreement with Dakota County related to 179th Street Reconstruction, with the City’s total share to date of $224,009 being recorded as a new loan in 2021. Additions in the amount of $68,018 were made to this loan in 2022, additions in the amount of $41,346 were made to this loan in 2023, there were no additions or payments in 2024, and additions in the amount of $6,017,594 were made to this loan in 2025. The balance as of December 31, 2025 is $6,351,057. During 2023, the city entered into agreements for three more projects with Dakota County. The first of these agreements related to reconstruction on 185th Street between Dodd Boulevard and Highview Avenue, with the City’s total to date of $2,982,455 as a new loan in 2023. There were no additions or payments in 2024. In 2025, there were additions in the amount of $111,198 and payments in the amount of $547,001. This loan is not payable to the County until 2026. The total amount to date for this loan as of December 31, 2025, is $2,546,642. During 2023, the city entered into another agreement related to the 210th Street and Lakeville Boulevard reconstruction project, with the City’s total to date of $524,000 as a new loan in 2023. An addition of $438,190 was added to this loan in 2024, and additions of $2,788,111 were added to this loan in 2025. The total amount to date for this loan as of December 31, 2025, is $3,434,001. During 2024, the city entered into another agreement related to the 179th St. and County Road 31 traffic signal construction project, with the city’s total share to date of $327,602 recorded as a new loan as of December 31, 2024. A payment of $15,740 was made in 2025, bringing the total to date of this loan as of December 31, 2025 to $311,863. Business-type Activities Year Ending December 31,Principal Interest Total 2026 1,105,000$ 208,588$ 1,313,588$ 2027 950,000 168,588 1,118,588 2028 980,000 133,538 1,113,538 2029 915,000 97,988 1,012,988 2030 895,000 62,838 957,838 2031-2034 1,610,000 81,818 1,691,818 Total 6,455,000$ 753,358$ 7,208,358$ Business-type Activities 83 Page 311 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) Future revenue pledged for the payment of long-term debt related to the Utility – Water, Utility – Sewer, Utility – Street Lights, and Water Connection revenue bonds is noted in the table below. Utility Operating Revenues 22,621,501$ Principal and Interest 1,388,787 Percentage of Revenues 1,629 % Leases Payable The City also leases liquor store space, as a lease, as well as certain operations under long-term, non-cancelable lease agreements. The Heritage Liquor Store lease (located in Heritage Shopping Center) consists of 8,859 square feet of space and expires on June 30, 2027. This lease was discounted at a rate of 0.636%. The Kenrick Liquor Store lease (located on Kenrick Avenue) consists of 9,705 square feet of space and expires on April 30, 2028. This lease was discounted at a rate of 1.24%. The City also has an internal lease between the HRA and the Liquor fund for space that was funded by the 2017A lease revenue refunding bonds. Issue Payment Balance at Description Date Terms Year End Liquor Store Building leases 0.636 - 1.24 %01/01/22 66 Months 2,711,772$ Interest Rates The annual service requirements to maturity for the leases payable are as follows: Year Ending June 30,Principal Interest Total 2026 343,608$ 30,564$ 374,172$ 2027 259,588 27,457 287,045 2028 181,353 25,137 206,490 2029 188,254 22,830 211,084 2030 190,601 20,482 211,083 2031-2035 1,029,233 65,523 1,094,756 2036-2038 519,135 7,814 526,949 Total 2,711,772$ 199,807$ 2,911,579$ Lease Payable Financed Purchase Agreements On October 25, 2017, the city issued $2,255,000 in HRA Lease Revenue Liquor Enterprise Refunding Bonds, Series 2017A. The proceeds of this issue were deposited with the Trustee in order to call and prepay the outstanding liquor revenue bonds of 2007. In exchange for the refunding of the existing liquor revenue bonds, the liquor fund conveyed related capital assets consisting of land and building to the HRA fund. The HRA then leased the building back to the liquor fund under a financed purchase agreement, resulting in the capital assets being reported back to the liquor fund and the long-term debt being shown in the liquor fund as a financed purchase. The financed purchase terms include interest of between 2.0%- 3.0% with payments totaling $2,255,000 through 2027. Per governmental accounting standards the related long-term debt is not shown in both the governmental and business-type activities, therefore the long-term liability is included in business-type activities as a financed purchase. 84 Page 312 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) The annual service requirements to maturity for financed purchase agreements are as follows: Year Ending December 31,Principal Interest Total 2026 270,000$ 12,450$ 282,450$ 2027 280,000 4,200 284,200 Total 550,000$ 16,650$ 566,650$ Business-type Activities Changes in Long-term Liabilities During the year ended December 31, 2025, the following changes occurred in non-current liabilities reported on the government-wide statements. Beginning Ending Due Within Balance Adjustments Increases Decreases Balance One Year Governmental Activities Bonds Payable G.O. Bonds 64,575,000$ 6,455,000$ 22,250,000$ (4,715,000)$ 88,565,000$ 5,950,000$ Tax Abatement 16,290,000 - - (1,045,000) 15,245,000 1,080,000 Special Assessment 57,800,000 (6,455,000) - (6,445,000) 44,900,000 5,955,000 State Aid Bonds 3,260,000 - - (215,000) 3,045,000 230,000 G.O. Water Revenue 5,125,000 - - (490,000) 4,635,000 495,000 Total Bonds Payable - Net 147,050,000 - 22,250,000 (12,910,000) 156,390,000 13,710,000 Met Council Loans 2,956,795 - - - 2,956,795 - Dakota County Advances 5,174,149 - 8,916,903 (1,447,490) 12,643,562 - Bond Premium 8,707,324 - 1,031,777 (1,631,236) 8,107,865 - Compensated Absences Payable*3,851,391 - - (267,041) 3,584,350 - Governmental Activity Long-term Liabilities 167,739,659$ -$ 32,198,680$ (16,255,767)$ 183,682,572$ 13,710,000$ Business-type Activities Bonds Payable G.O. Utility Bonds 7,585,000$ -$ -$ (1,130,000)$ 6,455,000$ 1,105,000$ Unamortized discount and premium 555,730 - - (156,538) 399,192 - Total Bonds Payable - Net 8,140,730 - - (1,286,538) 6,854,192 1,105,000 Financed Purchase Agreement 815,000 - - (265,000) 550,000 270,000 Lease Liability 3,047,078 - - (335,306) 2,711,772 343,608 Compensated Absences Payable*633,676 - 53,889 - 687,565 - Business-type Activity Long-term Liabilities 12,636,484$ -$ 53,889$ (1,886,844)$ 10,803,529$ 1,718,608$ *The change in the compensated absences liability is presented as a net change under GASB 101. 85 Page 313 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 3: Detailed Notes on All Funds (Continued) F. Components of Fund Balance At December 31, 2025, portions of the City’s fund balance are not available for appropriation due to not being in spendable form (Nonspendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance: Nonmajor Debt Capital Governmental General Service Projects Funds Total Nonspendable Prepaid items 45,030$ -$ -$ -$ 45,030$ Inventory 157,104 - - - 157,104 Total Nonspendable 202,134$ -$ -$ -$ 202,134$ Restricted for Debt service -$ 27,711,830$ -$ -$ 27,711,830$ Public buildings - - 8,556,165 - 8,556,165 Public improvements - - 6,517,834 - 6,517,834 Street construction - - 11,489,783 - 11,489,783 Park development - - 9,520,727 - 9,520,727 Tax increment - - 136,463 - 136,463 Parks bond referendum - - 2,495,047 - 2,495,047 Public communications - - - 156,032 156,032 Local Affordable Housing Aid - - - 635,458 635,458 Opioid remediation activities - - - 156,609 156,609 Downtown Special Service District - - - 10,594 10,594 Total Restricted -$ 27,711,830$ 38,716,019$ 958,693$ 67,386,542$ Committed for Public improvements -$ -$ 209,672$ -$ 209,672$ Public buildings - - 1,339,025 - 1,339,025 Pavement management - - 775,514 - 775,514 Storm sewer trunk system - - 7,117,551 - 7,117,551 Water trunk system - - 15,085,161 - 15,085,161 Sanitary sewer trunk system - - 14,202,324 - 14,202,324 Trail improvement - - 792,760 - 792,760 Park improvement - - 723,558 - 723,558 Capital acquisitions - - 758,896 - 758,896 Technology equipment - - 478,840 - 478,840 Arenas improvement projects - - 284,821 - 284,821 Public communications - - - 839,945 839,945 Total Committed -$ -$ 41,768,122$ 839,945$ 42,608,067$ Assigned to SAFER Grant/Comp Plan 2050 775,000$ -$ -$ -$ 775,000$ 86 Page 314 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide A. Plan Description General Employees Retirement Plan (General Plan) Public Employees Police and Fire Plan (Police and Fire Plan) B. Benefits Provided General Employees Plan Benefits The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes chapter 356 defines each plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. Membership in the General Plan includes employees of counties, cities, townships, schools in non-certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the entity’s governing body. The resolution must state that the position meets plan requirements. PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is “vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. General Employees Plan requires three years of service to vest. Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7% for each additional year. Under the Level formula, General Plan members receive 1.7% of highest average salary for all years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced retirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25% for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. 87 Page 315 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Plan Benefits C. Contributions General Employees Fund Contributions Police and Fire Fund Contributions Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. The 2025 annual increase was 1.25%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a prorated increase. Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50% vested after five years of service and 100% vested after ten years. After five years, vesting increase by 10% each full year of service until members are 100% vested after ten years. Police and Fire Plan members receive 3% of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417% each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a prorated increase. Minnesota Statutes chapters 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2025 and the City was required to contribute 7.50% for General Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2025, were $1,254,741. The City's contributions were equal to the required contributions as set by state statute. Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2025 and the City was required to contribute 17.70% for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2025, were $1,874,535. The City’s contributions were equal to the required contributions as set by state statute. 88 Page 316 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs City’s proportionate share of the net pension liability 5,967,502$ State of Minnesota's proportionate share of the net pension liability associated with the City 143,955 Total 6,111,457$ Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 568,572$ -$ Changes in actuarial assumptions 143,782 1,373,102 Net difference between projected and actual investment earnings - 2,374,526 Changes in proportion 162,524 405,665 Employer contributions subsequent to the measurement date 628,897 - Total 1,503,775$ 4,153,293$ At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: For the year ended December 31, 2025, the City recognized pension expense of negative $134,282 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional negative $22,081 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2025, the City reported a liability of $5,967,502 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $143,955. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024 through June 30, 2025, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.1801% at the end of the measurement period and 0.1802% for the beginning of the period. 89 Page 317 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) 2026 (709,282)$ 2027 (1,325,352) 2028 (819,604) 2029 (424,177) Police and Fire Fund Pension Costs City’s proportionate share of the net pension liability 7,654,352$ State of Minnesota's proportionate share of the net pension liability associated with the City 265,338 Total 7,919,690$ The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $58,796 for the year ended December 31, 2025 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the Police and Fire Fund. The $628,897 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2025. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state aid was paid on October 1, 2024. The direct state aid payment will increase by $17.7 million which was paid on October 1, 2025. Thereafter, by October 1 of each year, the state will pay $26.7 million to the Police and Fire Fund until the fund is 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). The $9 million in supplemental state aid will continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100% funded for three consecutive years (on an actuarial value of assets basis). The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $265,338. For the year ended December 31, 2025, the City recognized pension expense of $1,929,994 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $128,383 as grant revenue and pension expense for its proportionate share of the State of Minnesota’s contribution of $9 million to the Police and Fire special funding situation. At December 31, 2025, the City reported a liability of $7,654,352 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024 through June 30, 2025, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.6533% at the end of the measurement period and 0.6181% for the beginning of the period. 90 Page 318 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual economic experience 3,536,554$ -$ Changes in actuarial assumptions 5,804,454 9,590,584 Net difference between projected and actual earnings on investments - 3,416,244 Changes in proportion 808,141 - Employer contributions subsequent to the measurement date 979,038 - Total 11,128,187$ 13,006,828$ 2026 2,025,507$ 2027 (1,509,585) 2028 (3,595,647) 2029 (79,288) 2030 301,334 E. Long-term Expected Return on Investment Domestic Equity 33.5 %5.10 % International Equity 16.5 5.30 Fixed Income 25.0 0.75 Private Markets 25.0 5.90 Total 100.0 % The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best- estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-term Target Expected Return Asset Class Allocation on Investment At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $979,038 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 91 Page 319 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) F. Actuarial Methods and Assumptions The following changes in actuarial assumptions and plan provisions occurred in 2025: General Employees Fund Changes in Actuarial Assumptions: Changes in Plan Provisions: - The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. - The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. - The combined service annuity loading factors increased from 15% to 19% for vested, terminated members and from 3% to 44% for non-vested, terminated members. - The assumed post-retirement benefit increase changed from 1.25% to 1.5%. The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2025, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to determine the total liability is 7%. The 7% assumption is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7% is within that range. Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023 actuarial valuation. The Police & Fire Plan was reviewed in 2024. The assumption changes were adopted by the board and became effective with the July 1, 2025 actuarial valuation. - Inflation is assumed to be 2.25% for the General Employees Plan, and Police & Fire Plan. - Benefit increases after retirement are assumed to be 1.50% for the General Employees Plan and 1% for the Police & Fire Plan Salary growth assumptions in the General Employees Plan range in annual increments from 11.5% after one year of service to 3% after 27 years of service. In the Police & Fire Plan, salary growth assumptions range in annual increments from 10.75% after one year of service to 3% after 23 years of service. Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police & Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. 92 Page 320 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Changes in Actuarial Assumptions: Changes in Plan Provisions: - The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). - The January 1, 2026 benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. - The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). - The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2024 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). - An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. - Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. - Assumed rates of salary increases were reduced slightly. - Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. - Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. - Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. - Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. - Percent married assumption for female retirees lowered from 70% to 65%. - Minor changes were made to form of payment assumptions for retirees. - Minor changes were made to assumptions made with respect to missing participant data. - The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. 93 Page 321 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 4: Defined Benefit Pension Plans - Statewide (Continued) G. Discount Rate H. Pension Liability Sensitivity 1 Percent 1 Percent Decrease (6.00%)Current (7.00%)Increase (8.00%) General Employees Fund 14,494,127$ 5,967,502$ (949,509)$ Police and Fire Fund 20,056,026 7,654,352 (2,529,378) I. Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the Internet at www.mnpera.org. The discount rate used to measure the total pension liability in 2025 was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and Fire Plans were projected to be available to make all projected future benefit payments of current plan members. The long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 94 Page 322 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 5: Defined Contribution Plan The City has City Council members that are covered by the Defined Contribution Plan (DCP), a multiple-employer deferred compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and twenty-five hundredths of 1.0 percent (0.25 percent) of the assets in each member's account annually. Total contributions made by the City During the fiscal year 2025 were: Employee Employer Employee Employer Required Rate 2,787$ 2,787$ 5.00%5.00%5.00% Contribution Amount Covered Payroll Percentage of The City and council member’s contributions to the DCP plan for the years ending December 31, 2025, 2024 and 2023 were $2,787, $2,795, and $2,759, respectively. Note 6: Defined Benefit Pension Plans - Volunteer Fire Relief Association A. Plan Description Volunteer firefighters of the City of Lakeville Fire Department (the Department) are members of the Lakeville Fire Relief Association (the Association), which administers a single-employer defined benefit plan established to provide benefits for its members. The plan is established and administered in accordance with Minnesota Statute, Chapters 69 and 424, as amended. The Association is governed by a board of six members elected by the members of the Association for three-year terms. One City Council member, Finance Director and Fire Chief are ex officio, nonvoting members of the Board of Trustees. As of December 31, 2025, the plan covered 75 active firefighters and 24 vested terminated firefighters whose pension benefits are deferred. The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the Department’s membership. Funding for the Association is derived from an insurance premium tax in accordance with the Volunteer Firefighter’s Relief Association Financing Guidelines Act of 1971 (Chapter 261 as amended by Chapter 509 of Minnesota Statutes 1980). Funds are also derived from investment income. 95 Page 323 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 6: Defined Benefit Pension Plans - Volunteer Fire Relief Association (Continued) B. Benefits Provided A firefighter who completes at least 20 years as an active member of the Department is entitled, after age 50, to a full service pension upon retirement. The bylaws of the Association also provide for an early vested service pension for a retiring member who has completed fewer than 20 years of service. The reduced pension, available to members with seven years of service, shall be equal to 48% of the pension as described by the bylaws. This percentage increases 4% per year so that at 20 years of service, the full amount prescribed is paid. Members who retire with less than 20 years of service and have reached the age of 50 years and have completed at least seven years of active membership are entitled to a reduced service pension not to exceed the amount calculated by multiplying the member’s service pension for the completed years of service times the applicable nonforfeitable percentage of pension. C. Contributions Minnesota Statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota Statutes and voluntary City contributions (if applicable). The firefighters have no obligation to contribute to the plan. Nonemployer pension contributions include state aid from the state of Minnesota and municipal contributions from the City. On-behalf of the state payments from the State of Minnesota are received initially by the City and subsequently remitted to the Association. These on-behalf of the state aid payments in addition to the City’s municipal contribution payments to the Association plan are recognized as revenues and expenditures in the City’s General fund during the period received. The City contributed State of Minnesota fire aid of $781,775 to the plan on behalf of the Department for the year ended December 31, 2025, which was recorded as revenue. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily required contributions to the plan for the year ended December 31, 2025 were $- 0-. The City’s contributions were equal to the required contributions as set by State Statute. The City made no voluntary contributions to the plan. D. Pension Costs At December 31, 2025, the City reported a net pension liability (asset) of $(4,441,840) for the plan. The net pension liability (asset) was measured as of December 31, 2024. The total pension liability used to calculate the net pension liability (asset) in accordance with GASB Statement No. 68 was determined by Van Iwaarden Associates, applying an actuarial formula to specific census data certified by the Department as of December 31, 2025. 96 Page 324 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 6: Defined Benefit Pension Plans - Volunteer Fire Relief Association (Continued) The following table presents the changes in the net pension liability (asset) during the year: Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (a)(b)(a-b) Beginning Balance January 1, 2025 9,022,412$ 13,424,719$ (4,402,307)$ Changes for the Year Service cost 587,351 - 587,351 Interest cost 554,630 - 554,630 Plan changes 1,410,184 - 1,410,184 Projected investment return - 1,835,433 (1,835,433) Nonemployer contributions - 787,775 (787,775) Benefit payments (1,471,368) (1,471,368) - Administrative expenses - (31,510) 31,510 Total Net Changes 1,080,797 1,120,330 (39,533) Ending Balance December 31, 2025 10,103,209$ 14,545,049$ (4,441,840)$ For the year ended December 31, 2025, the City recognized pension expense of $1,142,752. At December 31, 2025, the City reported deferred outflows of resources, including its contributions subsequent to the measurement date, related to pension from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience 80,204$ 578,512$ Changes in Actuarial Assumptions 69,250 109,757 Net Difference Between Projected and Actual Earnings on Plan Investments - 1,589,933 Total 149,454$ 2,278,202$ Amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: (299,723)$ (902,403) (598,993) (239,602) (37,833) (50,194) Thereafter 2026 2027 2028 2029 2030 97 Page 325 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 6: Defined Benefit Pension Plans - Volunteer Fire Relief Association (Continued) E. Actuarial Assumptions The total pension liability at December 31, 2025 was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Retirement eligibility at 100% service pension at age 50 with 20 years of service, early vested retirement at age 50 with seven years of service vested at 48% and increased by 4% for each additional year of service up to 20 and eligibility for deferred service pension payable at age 50 and based on the lump sum pension formula and service at date of termination reduced for less than 20 years of service. Salary Increases 2.50% per year Cost of Living Increases 2.50% Investment Rate of Return 6.25% 20-Year Municipal Bond Yield 6.25% The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Asset Class Cash and Equivalents 60.00 %0.99 % Fixed Income 35.00 2.44 Equities 5.00 4.52 Total 100.00 % Long-term Target Expected Real Allocation Rate of Return F. Discount Rate The discount rate used to measure the total pension liability was 6.25%. The projection of cash flows used to determine the discount rate assumed that contributions to the plan will be made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount rate: 1 Percent 1 Percent Decrease (5.25%)Current (6.25%)Increase (7.25%) Defined Benefit Plan (4,155,921)$ (4,441,840)$ (4,717,016)$ H. Pension Plan Fiduciary Net Position The Association issues a publicly available financial report. The report may be obtained by writing to the Lakeville Firefighters’ Relief Association, 20195 Holyoke Avenue, Lakeville, Minnesota, 55044 or by calling (952) 985-4480. 98 Page 326 of 420 Note 7: Postemployment Benefits Other than Pensions A. Plan Description At December 31, 2025, the following employees were covered by the benefit terms: Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 10 Active Plan Members 231 Total Plan Members 241 B. Funding Policy C. Actuarial Methods and Assumptions Discount Rate 4.28% 20-Year Municipal Bond Yield 4.28% Salary Increases 3.50% Medical Trend Rate 6.20% in 2025 grading to 5.20% over 4 years and then to 4.10% over the next 44 years D. Changes in the Total OPEB Liability Total OPEB Liability Balances at December 31, 2024 1,199,847$ Changes for the Year Service Costs 102,553 Interest Costs 51,209 Assumption Changes 638,974 Differences between expected and actual experience 332,516 Benefit Payment (44,782) Net Changes 1,080,470 Balances at December 31, 2025 2,280,317$ City of Lakeville Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 The discount rate used to measure the total OPEB liability was 4.28 percent. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the 20-year municipal bond rate. The equivalent single rate is the discount rate. The actuarial assumptions used in the valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. The City provides a single employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage. Medical coverage is administered by Benefits Extra, Inc. It is the City’s policy to periodically review its medical coverage and to obtain request for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. The plan includes no assets accumulated in a GASB-compliant trust. Contribution requirements are also negotiated between the City and union representatives. The City contributes a predetermined portion of the cost of current- year premiums for eligible retired plan members and their spouses based on the employment contract in effect at the time of retirement. For the year ended December 31, 2025, the City’s average contribution rate was 8 percent of covered-employee payroll. For the year 2025, the City directly contributed $38,441 to the Plan, while implicit contributions totaled $29,766. For the year ended December 31, 2025, the City's average contribution rate was 9.81 percent of covered-employee payroll. For the fiscal year 2025, the City The City’s total OPEB liability of $2,280,317 was measured as of January 1, 2025, and the OPEB liability was determined by an actuarial valuation as of January 1, 2025. The total OPEB liability in the January 1, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: 99 Page 327 of 420 Note 7: Postemployment Benefits Other than Pensions (Continued) Since the prior measurement date, the following assumptions changed: Since the prior measurement date, the following plan provisions changed: Since the prior measurement date, the following benefit terms changed: E. Sensitivity of the Total OPEB Liability 1 Percent Discount Rate 1 Percent Decrease 3.28%Current 4.28%Increase 5.28% 2,475,200$ 2,280,317$ 2,099,088$ Healthcare Cost 1 Percent Decrease Trend Rates 1 Percent Increase 1,987,804$ 2,280,317$ 2,631,880$ The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare cost trend rate one percentage point lower or one percentage point higher than the current healthcare cost trend rate: City of Lakeville 5.20% Decreasing to 3.70% 6.20% Decreasing to 4.70% 7.20% Decreasing to 5.70% 2025 Changes in Actuarial Assumptions: Discount rate of 4.00% was updated to 4.28% Medical trend was updated to 2025 Getzen Model Retirement rates, withdrawal rates and disability rates were updated and consistent with rates disclosed in 2025 MNPERA plan ACFR report. Mortality tables were updated to relevant Pub-2010 General and Safety mortality tables with improvement scale MP-2021. Changes in Plan Provisions: There have been no changes since the prior valuation. Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 • None The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: • None 100 Page 328 of 420 Note 7: Postemployment Benefits Other than Pensions (Continued) City of Lakeville Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 428,390$ 295,346$ Changes in Actuarial Assumptions 665,684 126,455 Contributions Paid to OPEB Subsequent to the Measurement Date 33,799 - Total 1,127,873$ 421,801$ 65,633$ 65,633 65,633 65,633 54,469 Thereafter 355,272 2030 2026 2028 2029 2027 Deferred outflows of resources totaling $33,799 resulting from the City’s contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability as of December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: For the year ended December 31, 2025, the City recognized OPEB expense of $218,040. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 101 Page 329 of 420 Note 7: Postemployment Benefits Other than Pensions A. Plan Description At December 31, 2025, the following employees were covered by the benefit terms: Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 10 Active Plan Members 231 Total Plan Members 241 B. Funding Policy C. Actuarial Methods and Assumptions Discount Rate 4.28% 20-Year Municipal Bond Yield 4.28% Salary Increases 3.50% Medical Trend Rate 6.20% in 2025 grading to 5.20% over 4 years and then to 4.10% over the next 44 years D. Changes in the Total OPEB Liability Total OPEB Liability Balances at December 31, 2024 1,199,847$ Changes for the Year Service Costs 102,553 Interest Costs 51,209 Assumption Changes 638,974 Differences between expected and actual experience 332,516 Benefit Payment (44,782) Net Changes 1,080,470 Balances at December 31, 2025 2,280,317$ City of Lakeville Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 The discount rate used to measure the total OPEB liability was 4.28 percent. Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the 20-year municipal bond rate. The equivalent single rate is the discount rate. The actuarial assumptions used in the valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. The City provides a single employer defined benefit health care plan to eligible retirees and their spouses. The plan offers medical coverage. Medical coverage is administered by Benefits Extra, Inc. It is the City’s policy to periodically review its medical coverage and to obtain request for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. The plan includes no assets accumulated in a GASB-compliant trust. Contribution requirements are also negotiated between the City and union representatives. The City contributes a predetermined portion of the cost of current- year premiums for eligible retired plan members and their spouses based on the employment contract in effect at the time of retirement. For the year ended December 31, 2025, the City’s average contribution rate was 8 percent of covered-employee payroll. For the year 2025, the City directly contributed $38,441 to the Plan, while implicit contributions totaled $29,766. For the year ended December 31, 2025, the City's average contribution rate was 9.81 percent of covered-employee payroll. For the fiscal year 2025, the City The City’s total OPEB liability of $2,280,317 was measured as of January 1, 2025, and the OPEB liability was determined by an actuarial valuation as of January 1, 2025. The total OPEB liability in the January 1, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: 102 Page 330 of 420 Note 7: Postemployment Benefits Other than Pensions (Continued) Since the prior measurement date, the following assumptions changed: Since the prior measurement date, the following plan provisions changed: Since the prior measurement date, the following benefit terms changed: E. Sensitivity of the Total OPEB Liability 1 Percent Discount Rate 1 Percent Decrease 3.28%Current 4.28%Increase 5.28% 2,475,200$ 2,280,317$ 2,099,088$ Healthcare Cost 1 Percent Decrease Trend Rates 1 Percent Increase 1,987,804$ 2,280,317$ 2,631,880$ The following presents the City’s total OPEB liability, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare cost trend rate one percentage point lower or one percentage point higher than the current healthcare cost trend rate: City of Lakeville 5.20% Decreasing to 3.70% 6.20% Decreasing to 4.70% 7.20% Decreasing to 5.70% 2025 Changes in Actuarial Assumptions: Discount rate of 4.00% was updated to 4.28% Medical trend was updated to 2025 Getzen Model Retirement rates, withdrawal rates and disability rates were updated and consistent with rates disclosed in 2025 MNPERA plan ACFR report. Mortality tables were updated to relevant Pub-2010 General and Safety mortality tables with improvement scale MP-2021. Changes in Plan Provisions: There have been no changes since the prior valuation. Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 • None The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: • None 103 Page 331 of 420 Note 7: Postemployment Benefits Other than Pensions (Continued) City of Lakeville Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 428,390$ 295,346$ Changes in Actuarial Assumptions 665,684 126,455 Contributions Paid to OPEB Subsequent to the Measurement Date 33,799 - Total 1,127,873$ 421,801$ 65,633$ 65,633 65,633 65,633 54,469 Thereafter 355,272 2030 2026 2028 2029 2027 Deferred outflows of resources totaling $33,799 resulting from the City’s contributions to OPEB subsequent to the measurement date will be recognized as a reduction of the OPEB liability as of December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: For the year ended December 31, 2025, the City recognized OPEB expense of $218,040. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 104 Page 332 of 420 City of Lakeville, Minnesota Notes to the Financial Statements December 31, 2025 Note 8: Other Information A. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries insurance. The City participates in the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’ compensation and other miscellaneous insurance coverage. LMCIT operates as a common risk management and insurance program for member cities. The City pays an annual premium to LMCIT for insurance coverage. The LMCIT agreement provides that LMCIT will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits for each insured event. The City also carries commercial insurance for certain other risks of loss, including liquor liability and employee health insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years. There were no significant reductions in insurance coverage during 2025. B. Legal Claims The City has usual and customary type of miscellaneous legal claims pending at year-end. Although the outcome of these lawsuits is not presently determinable, the City’s management believes the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City’s financial statements relating to these claims. C. Tax Abatement The City has five pay-as-you-go tax increment financing districts with local businesses to promote economic development within the City. The City agrees pursuant to the authority granted in the TIF Act to abate real estate taxes based on the increased property value from improvements on the owned property. The three of the five agreements call for 95% of the property tax increments collected to be returned to the developers. The City will retain 5% for administrative fees for the periods of time specified in each agreement. One of the agreements calls for 90% of the property tax increments collected to be returned to the developers. The City will retain 10% for administrative fees for the periods of time specified in the agreement. One of the agreements calls for 80% of the property tax increments collected to be returned to the developers. The City will retain 20% for administrative fees for the periods of time specified in the agreement. 105 Page 333 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 106 Page 334 of 420 REQUIRED SUPPLEMENTARY INFORMATION CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 107 Page 335 of 420 Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2025 0.1801 %5,967,502$ 143,955$ 6,111,457$ 16,295,528$ 36.6 %90.8 % 6/30/2024 0.1802 6,660,502 172,227 6,832,729 15,019,453 44.3 89.1 6/30/2023 0.1929 10,786,752 297,327 11,084,079 15,468,304 69.7 83.1 6/30/2022 0.1821 14,422,380 1,139,864 15,562,244 13,640,721 105.7 76.7 6/30/2021 0.1758 7,507,448 229,302 7,736,750 12,645,032 59.4 87.0 6/30/2020 0.1701 10,198,272 314,577 10,512,849 12,134,069 84.0 79.1 6/30/2019 0.1633 9,028,491 280,654 9,309,145 11,645,116 77.5 80.2 6/30/2018 0.1632 9,053,667 297,059 9,350,726 10,971,998 82.5 79.5 6/30/2017 0.1585 10,118,535 127,203 10,245,738 10,213,446 99.1 75.9 6/30/2016 0.1544 12,536,514 - 12,536,514 9,572,229 131.0 68.9 Schedule of Employer’s PERA Contributions - General Employees Fund Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered Year Contribution Contribution (Excess)Payroll Payroll Ending (a)(b)(a-b)(c)(b/c) 12/31/2025 1,254,741$ 1,254,741$ -$ 16,729,883$ 7.50 % 12/31/2024 1,126,459 1,126,459 - 15,019,453 7.50 12/31/2023 1,065,020 1,065,020 - 14,200,267 7.50 12/31/2022 1,065,020 1,065,020 - 14,200,267 7.50 12/31/2021 987,086 987,086 - 13,161,147 7.50 12/31/2020 990,259 990,259 - 13,203,453 7.50 12/31/2019 896,894 896,894 - 11,958,587 7.50 12/31/2018 847,485 847,485 - 11,299,800 7.50 12/31/2017 791,612 791,612 - 10,554,827 7.50 12/31/2016 741,919 741,919 - 9,892,253 7.50 City of Lakeville, Minnesota Required Supplementary Information For the Year Ended December 31, 2025 City's Proportionate Share of the Net Pension Plan FiduciaryLiability as a Net Position Proportion of Percentage of as a PercentageCovered City's the Net Pension Payroll of the Total Liability (a/c)Pension Liability 108 Page 336 of 420 Notes to the Required Supplementary Information - General Employee Retirement Fund City of Lakeville, Minnesota Changes in Actuarial Assumptions 2025 - The combined service annuity loading factors increased from 15% to 19% for vested, terminated members and from 3% to 44% for non- vested, terminated members. The assumed post-retirement benefit increase changed from 1.25% to 1.5%. 2024 - The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the most recent experience study (dated June 29, 2023): Rates of merit and seniority were adjusted, resulting in slightly higher rates. Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. Minor increase in assumed withdrawals for males and females. Lower rates of disability. Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. Minor changes to form of payment assumptions for male and female retirees. Minor changes to assumptions made with respect to missing participant data. 2023 - The investment return and single discount rates were changed from 6.5 percent to 7.0 percent. 2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 - The mortality projection scale was changed from MP-2017 to MP-2018. 2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. Required Supplementary Information (Continued) For the Year Ended December 31, 2025 109 Page 337 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - General Employee Retirement Fund (Continued) Changes in Plan Provisions 2025 - The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%.The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. 2024 - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024 was eliminated. A one-time non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Contribution stabilizer provisions were repealed. Postretirement benefit increases were changed from 1.0 percent per year with a provision to increase to 2.5 percent upon attainment of 90.0 percent funding ratio to 50.0 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 2016 - There were no changes in plan provisions since the previous valuation. 110 Page 338 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Fund State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2025 0.6533 %7,654,352$ 265,338$ 7,919,690$ 9,918,945$ 77.2 %91.8 % 6/30/2024 0.6181 8,132,040 309,990 8,442,030 8,801,559 92.4 90.2 6/30/2023 0.6080 10,499,370 422,928 10,922,298 7,903,580 132.8 86.5 6/30/2022 0.5996 26,092,224 1,139,864 27,232,088 7,255,546 359.6 70.5 6/30/2021 0.5818 4,490,879 201,912 4,692,791 6,888,492 65.2 93.7 6/30/2020 0.5668 7,471,030 175,988 7,647,018 6,400,325 116.7 87.2 6/30/2019 0.5900 6,281,146 - 6,281,146 6,241,714 100.6 89.3 6/30/2018 0.5693 6,068,152 - 6,068,152 6,004,172 101.1 88.8 6/30/2017 0.5490 7,412,153 - 7,412,153 5,635,205 131.5 85.4 6/30/2016 0.5620 22,554,038 - 22,554,038 5,423,663 415.8 63.9 Schedule of Employer’s PERA Contributions - Police and Fire Fund Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered Year Contribution Contribution (Excess)Payroll Payroll Ending (a)(b)(a-b)(c)(b/c) 12/31/2025 1,874,535$ 1,874,535$ -$ 10,590,595$ 17.70 % 12/31/2024 1,557,875 1,557,875 - 8,801,556 17.70 12/31/2023 1,403,842 1,403,842 - 7,931,311 17.70 12/31/2022 1,316,993 1,316,993 - 7,440,638 17.70 12/31/2021 1,172,597 1,172,597 - 6,624,842 17.70 12/31/2020 1,173,052 1,173,052 - 6,627,412 17.70 12/31/2019 1,066,319 1,066,319 - 6,290,968 16.95 12/31/2018 999,032 999,032 - 6,166,864 16.20 12/31/2017 942,349 942,349 - 5,816,969 16.20 12/31/2016 904,571 904,571 - 5,583,772 16.20 City's Percentage of Net Position Liability (a/c)Pension Liability Proportion of Covered as a Percentage the Net Pension Payroll of the Total Share of the Net Pension Liability as a Plan Fiduciary Proportionate City's 111 Page 339 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Police and Fire Fund Changes in Actuarial Assumptions 2025 - Assumed rates of salary increases were reduced slightly. Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. Percent married assumption for female retirees lowered from 70% to 65%. Minor changes were made to form of payment assumptions for retirees. Minor changes were made to assumptions made with respect to missing participant data. The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. 2024 - There were no changes in actuarial assumptions since the previous valuation. 2023 - The investment return assumption was changed from 6.5 percent to 7.0 percent. The single discount rate changed from 5.4 percent to 7.0 percent. 2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate changed from 6.50 percent to 5.40 percent. 2021 - The investment return and single discount rates were changed from 7.5 percent to 6.5 percent, for financial reporting purposes. The inflation assumption was changed from 2.5 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.0 percent. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020. The base mortality table for disabled annuitants was changed from the RP- 2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020). Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members was changed from 60.0 percent to 70.0 percent. Minor changes to form of payment assumptions were applied. 2020 - The mortality projection scale was changed from MP-2018 to MP-2019. 2019 - The mortality projection scale was changed from MP-2017 to MP-2018. 2018 - The mortality projection scale was changed from MP-2016 to MP-2017. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.5 percent for inflation. 112 Page 340 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Police and Fire Fund (Continued) Changes in Plan Provisions 2025 - The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). The January 1, 2026 benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 20248 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. 2024 - The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded status for one year. The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 2023 - An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. The vesting requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50 percent vesting after five years increasing incrementally to 100 percent after 10 years. A one-time non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023 prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. The total and permanent duty disability was increased, effective July 1, 2023. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 2020 - There were no changes in plan provisions since the previous valuation. 2019 - There were no changes in plan provisions since the previous valuation. 2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1, 2019 and 11.8 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.2 percent to 16.95 percent of pay, effective January 1, 2019 and 17.7 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017- Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The combined service annuity (CSA) load was 30.0 percent for vested and non-vested, deferred members. The CSA has been changed to 33.0 percent for vested members and 2.0 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65.0 percent to 60.0 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent per annum to 7.5 percent per annum. 2016 - There were no changes in plan provisions since the previous valuation. 113 Page 341 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 2025 2024 2023 2022 Total Pension Liability Service cost 587,351$ 501,314$ 489,087$ 438,526$ Interest on pension liability (asset)554,630 432,398 479,407 443,842 Changes of benefit terms 1,410,184 1,847,064 - 1,212,453 Differences between expected and actual experience - (255,200) - 148,756 Changes of assumptions - (126,493) - (27,176) Benefit payments (1,471,368) (790,653) (2,805,883) (491,000) Net Change in Total Pension Liability 1,080,797 1,608,430 (1,837,389) 1,725,401 Total Pension Liability - January 1 9,022,412 7,413,982 9,251,371 7,525,970 Total Pension Liability - December 31 (a)10,103,209$ 9,022,412$ 7,413,982$ 9,251,371$ Plan Fiduciary Net Position Nonemployer contributions 787,775$ 672,405$ 588,879$ 510,676$ Projected investment return 1,835,433 1,978,419 2,044,048 (2,204,039) Benefit payments (1,471,368) (790,653) (2,805,883) (491,000) Administrative expenses (31,510) (21,094) (19,686) (10,098) Net Change in Plan Fiduciary Net Position 1,120,330 1,839,077 (192,642) (2,194,461) Plan Fiduciary Net Position - January 1 13,424,719 11,585,642 11,778,284 13,972,745 Plan Fiduciary Net Position - December 31 (b)14,545,049$ 13,424,719$ 11,585,642$ 11,778,284$ Fire Relief's Net Pension Liability (Asset) - December 31 (a-b)(4,441,840)$ (4,402,307)$ (4,171,660)$ (2,526,913)$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability (b/a)143.96%148.79%156.27%127.31% Covered Payroll N/A N/A N/A N/A Fire Relief's Net Pension Liability (Asset) as a Percentage of Covered Payroll N/A N/A N/A N/A Notes to the Schedule: The expected long-term investment return and GASB discounting rate were increased from 5.25% to 6.25%. Note: Schedule is intended to show 10-year trend. Additional years will be reported as they become available. 114 Page 342 of 420 2021 2020 2019 2018 2017 2016 428,876$ 356,038$ 319,546$ 255,975$ 231,712$ 270,846$ 429,588 434,535 376,417 358,835 345,935 301,640 - 1,435,979 388,025 352,464 154,012 186,369 - (1,177,043) - (57,139) - (201,242) - 163,176 - 94,736 38,230 (161,264) (749,411) (249,778) (203,935) (602,296) (276,622) (547,241) 109,053 962,907 880,053 402,575 493,267 (150,892) 7,416,917 6,454,010 5,573,957 5,171,382 4,678,115 4,829,007 7,525,970$ 7,416,917$ 6,454,010$ 5,573,957$ 5,171,382$ 4,678,115$ 434,690$ 409,568$ 379,598$ 367,701$ 351,635$ 348,276$ 1,871,403 1,715,829 1,904,143 (314,875) 1,175,892 551,474 (749,411) (249,778) (203,935) (602,296) (276,622) (547,241) (15,719) (10,634) (12,474) (12,042) (11,579) (9,817) 1,540,963 1,864,985 2,067,332 (561,512) 1,239,326 342,692 12,431,782 10,566,797 8,499,465 9,060,977 7,821,651 7,478,959 13,972,745$ 12,431,782$ 10,566,797$ 8,499,465$ 9,060,977$ 7,821,651$ (6,446,775)$ (5,014,865)$ (4,112,787)$ (2,925,508)$ (3,889,595)$ (3,143,536)$ 185.66%167.61%163.72%152.49%175.21%167.20% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 115 Page 343 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Fire Relief Association Changes in Actuarial Assumptions 2025 - There were no changes in plan provisions since the previous valuation. 2024 - There were no changes in plan provisions since the previous valuation. 2023 - There were no changes in plan provisions since the previous valuation. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in actuarial assumptions since the previous valuation. 2020 - The mortality improvement scale changed from MP-2018 to MP-2019. The expected long-term investment return and GASB discount rate were lowered from 6.00% to 5.75%. The 20-Year municipal bond rate assumption was lowered from 3.50% to 3.00% 2019 - The health care trend rates were changed to better anticipate short term and long-term medical increases. The mortality tables were updated from the RP-2014 White Collar Mortality Tables with MP-2016 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel) to the RP-2014 White Collar Mortality Tables with MP- 2018 Generational Improvement Scale (with Blue Collar adjustment for Police and Fire Personnel). The retirement and withdrawal tables for Police and Fire Personnel were updated. The discount rate was changed from 3.30% to 3.80%. The percent of future retirees electing post-employment medical coverage was changed from 50% to 35%. 2018 - The mortality improvement scale changed from MP-2016 to MP-2017. The assumed annual increase to the benefit level changed from 1.50% to 2.00%. 2017 - The mortality improvement scale changed from MP-2015 to MP-2016. 2016 - The mortality improvement scale changed from MP-2014 to MP-2015. The disability decrement assumption was eliminated. 2015 - No changes in actuarial assumptions. 116 Page 344 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Fire Relief Association (Continued) Changes in Plan Provisions 2025 - There were no changes in plan provisions since the previous valuation. 2024 - The benefit rate increased from $44.03 to $45.35. The lump sum rate increased from $8,240.00 to $8,487.20. The increase was 3.0% compared to 2.5% expected. 2023 - There were no changes in plan provisions since the previous valuation. 2022 - There were no changes in plan provisions since the previous valuation 2021 - There were no changes in plan provisions since the previous valuation. 2020 - The monthly benefit level increased from $39.71 to $40.89. The lump sum benefit level increased from $6,073.73 to $6,255.94. 2019 - The monthly benefit level increased from $38.55 to $39.71 The lump sum benefit level increased from $5,896.83 to $6,073.73. 2018 - The monthly benefit level increased from $37.43 to $38.55 The lump sum benefit level increased from $5,725.08 to $5,896.83. 2015 - The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December 31, 2014. 117 Page 345 of 420 Schedule of Changes in the City's OPEB Liability and Related Ratios 2025 2024 2023 2022 Total OPEB Liability Service Costs 102,553 94,527 77,941 80,068 Interest Costs 51,209 49,386 26,086 21,882 Assumption Changes 638,974 28,776 (157,857) (28,591) Differences between expected and actual experience 332,516 - 69,035 (3,399) Benefit Payment (44,782) (47,802) (43,080) (41,533) Net Change in Total OPEB Liability 1,080,470 124,887 (27,875) 28,427 Total OPEB Liability - Beginning 1,199,847 1,074,960 1,102,835 1,074,408 Total OPEB Liability - Ending 2,280,317$ 1,199,847$ 1,074,960$ 1,102,835$ Covered - Employee Payroll 23,254,642$ 20,237,799$ 20,991,155$ 18,582,335$ City's total OPEB liability as a percentage of covered employee payroll 9.81 %5.93 %5.12 %5.93 % Changes in assumptions: Changes in benefits: • None • None City of Lakeville Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 2025 Changes in Actuarial Assumptions: Discount rate of 4.00% was updated to 4.28% Medical trend was updated to 2025 Getzen Model Retirement rates, withdrawal rates, and disability rates were updated and consistent with rates disclosed in 2025 MNPERA plan ACFR report. Mortality tables were updated to relevant Pub-2010 General and Safety mortality tables with improvement scale MP-2021. Changes in Plan Provisions: There have been no changes since the prior valuation. 118 Page 346 of 420 2021 2020 2019 2018 92,424 90,590 89,732 - 49,766 46,760 48,182 - 135,361 - - - (459,716) - 87,715 - (66,232) (51,097) (50,869) - (248,397) 86,253 174,760 - 1,322,805 1,236,552 1,061,792 1,061,792 1,074,408$ 1,322,805$ 1,236,552$ 1,061,792$ 17,204,233$ 14,711,089$ 14,711,089$ 15,084,789$ 6.25 %8.99 %8.41 %7.04 % • None • None 119 Page 347 of 420 City of Lakeville, Minnesota Budget Actual Variance with Original Final Amounts Amounts Final Budget Revenues Taxes 33,300,000$ 33,300,000$ -$ 33,115,094$ (184,906)$ Licenses and permits 3,259,689 3,387,799 128,110 3,661,713 273,914 Intergovernmental 3,478,938 3,674,484 195,546 3,641,318 (33,166) Charges for services 3,101,894 3,904,238 802,344 4,245,472 341,234 Fines and forfeits 240,000 240,000 - 196,228 (43,772) Special assessments - 67,000 67,000 83,355 16,355 Investment earnings 500,000 500,000 - 1,006,832 506,832 Miscellaneous 118,517 174,353 55,836 250,251 75,898 Total Revenues 43,999,038 45,247,874 1,248,836 46,200,263 952,389 Expenditures Current General government 8,010,447 7,981,297 (29,150) 7,442,509 538,788 Public safety 22,801,251 22,799,650 (1,601) 22,317,292 482,358 Public works 6,618,383 6,704,427 86,044 6,189,705 514,722 Culture and recreation 5,917,704 5,965,269 47,565 5,964,679 590 Capital outlay General government - 59,977 59,977 67,238 (7,261) Public safety 15,000 43,400 28,400 43,446 (46) Public works 119,539 128,147 8,608 130,857 (2,710) Culture and recreation 11,100 18,600 7,500 20,215 (1,615) Total Expenditures 43,493,424 43,700,767 207,343 42,175,941 1,524,826 Excess (Deficiency) of Revenues Over (Under) Expenditures 505,614 1,547,107 1,041,493 4,024,322 2,477,215 Other Financing Sources (Uses) Sale of capital assets 7,479 9,979 2,500 14,897 4,918 Transfers in 170,000 54,500 (115,500) 54,500 - Transfers out - (1,850,000) (1,850,000) (1,850,000) - Total Other Financing Sources (Uses)177,479 (1,785,521) (1,963,000) (1,780,603) 4,918 Net Change in Fund Balances 683,093 (238,414) (921,507) 2,243,719 2,482,133 Fund Balances, January 1 23,186,629 23,186,629 - 23,186,629 - Fund Balances, December 31 23,869,722$ 22,948,215$ (921,507)$ 25,430,348$ 2,482,133$ Required Supplementary Information (Continued) Budgeted Amounts Budgetary Comparison Schedule Budget and Actual General Fund For the Year Ended December 31, 2025 The notes to the financial statements are an integral part of this statement. 120 Page 348 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Budgetary Reporting A. Budgetary Comparison Schedule The budgetary comparison schedule presents the comparison of the original and legally amended budget with actual amounts on a departmental level for the General and Special Revenue funds. The departmental level budgets are adopted on a basis consistent with generally accepted accounting principles. The fund balance reports revenue in the period in which they become measurable and available. B. Budget Amendments In accordance with state statutes governing municipal financial management and compliance with GASB Statement No. 103, the City’s budget amendments were processed and approved through established legal and procedural frameworks. The City Council exercised its authority as delineated in Minnesota Statutes Section 471.6965, ensuring that all modifications to the budget were deliberated and approved in public meetings, adhering to principles of transparency and accountability. Each amendment or group of amendments were documented and justified based on emergent fiscal requirements or reallocation of resources, following criteria that align with GASB 103 guidelines. This process underscores the City’s commitment to maintaining financial integrity and regulatory compliance, providing a clear audit trail for citizens and auditors alike. C. Summary of Significant Budget Amendments Significant amendments to the original General fund budget were approved as noted below: Expenditures • Approved an increase to public works charges for services for increased engineering administrative fees. Other Financing Uses • Approved a decrease to transfers out to other funds, reflecting a personnel transition within the drug task force. The assigned officer retired during the fiscal year, with the position anticipated to be backfilled in 2026. The remaining transfer balance continues to be designated for remediation activities in accordance with their approved purpose. Significant amendments to the original Opioid Settlement fund budget were approved as noted below: Other Financing Uses • Approved an decrease to transfers out to other funds as funds are still required to be used for remediation activities. Significant amendments to the original Debt Service fund budget were approved as noted below: Other Financing Uses • Approved an increase to transfers out to other funds to apply franchise fee revenues designated for public safety capital projects, reducing the amount of bonds issued for the public safety training center. Significant amendments to the original Capital Projects fund budget were approved as noted below: Revenues • Approved an increase to intergovernmental revenues to account for MSA allocations. • Approved an increase to interest earnings based on project investment earnings. 121 Page 349 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Budgetary Reporting (Continued) Expenditures • Approved an increase to capital outlay expenditures to account for ongoing construction projects. Other Financing Sources and Uses • Approved an increase to bond issuances to account for the public safety training facility construction. • Approved an increase to premiums on bonds issued as the bond premium were realized. • Approved an increase to transfers in to account for other fund shares of project costs. • Approved an increase to transfers out to account for the capital project funds share of debt obligations. D. Summary of Significant Budget Variances The General fund revenues and expenditures varied significantly from final budget amounts as noted below: Revenues • Fair market value exceeded final budgeted amounts as this was not budgeted for due to the uncertain nature of the fair value of investments. The City generally holds investments until maturity; therefore, any temporary market value adjustments are expected to be recovered in future periods. The Debt Service fund revenues and expenditures varied significantly from final budget amounts as noted below: Revenues • Franchise taxes exceeded final budgeted amounts as this was not budgeted for. • Charges for services were under final budgeted amounts as a result of lower-than-expected service charges collected. • Fair market value exceeded final budgeted amounts as this was not budgeted for due to the uncertain nature of the fair value of investments. Other Financing Sources • Bond issuances exceeded final budgeted amounts and consists of capitalized interest on the bond issuance to be utilized for the first interest installment. The Capital Projects fund revenues and expenditures varied significantly from final budget amounts as noted below: 122 Page 350 of 420 City of Lakeville, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2025 Notes to the Required Supplementary Information - Budgetary Reporting (Continued) Revenues • Intergovernmental revenues were under final budgeted amounts as an increase in state revenues was expected but not received. The City expects to receive approximately $7 million in state aid in 2026, representing the first time this type of funding has been allocated to the City; delays in the awards and reimbursement process resulted in the revenue falling outside of the current fiscal year. • Charges for services exceeded final budgeted amounts as engineering fees on projects were higher than expected. • Interest earnings exceeded final budgeted amounts reflecting more favorable market conditions than originally projected. Consistent with the City’s investment practice of holding securities to maturity, any temporary adjustments to market value are expected to be recovered prior to settlement. • Fair market value exceeded final budgeted amounts as this was not budgeted for due to the uncertain nature of the fair value of investments. Expenditures • Capital outlay expenditures were under final budgeted amounts as capital project costs were lower than anticipated. Other Financing Sources • Bond issuance and other sources exceeded final budgeted amounts as the timing of realizing Dakota County portion of shared projects changed. E. Budgetary Compliance There were no budgetary compliance violations for the fiscal year ending December 31, 2025. 123 Page 351 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 124 Page 352 of 420 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 125 Page 353 of 420 Budget Actual Variance with Original Final Amendments Amounts Final Budget Revenues Taxes General property taxes Current 29,048,623$ 29,048,623$ -$ 28,914,698$ (133,925)$ Delinquent 242,000 242,000 - 216,749 (25,251) Fiscal disparities 3,928,377 3,928,377 - 3,892,236 (36,141) Mobile home tax 70,000 70,000 - 88,293 18,293 Gravel tax 11,000 11,000 - 3,118 (7,882) Total taxes 33,300,000 33,300,000 - 33,115,094 (184,906) Licenses and permits 3,259,689 3,387,799 128,110 3,661,713 273,914 Intergovernmental Federal Grants 1,603,936 1,603,936 - 1,501,886 (102,050) State Market value homestead credit 3,000 3,000 - 2,230 (770) Fire aid 682,405 781,775 99,370 784,775 3,000 Police aid 797,698 893,874 96,176 893,874 - Police and fire grants 108,750 108,750 - 121,058 12,308 Other state aid 283,149 170,149 (113,000) 227,121 56,972 Local Miscellaneous - 113,000 113,000 110,374 (2,626) Total intergovernmental 3,478,938 3,674,484 195,546 3,641,318 (33,166) Charges for services General government 458,973 536,443 77,470 558,686 22,243 Public safety 618,340 618,340 - 590,432 (27,908) Public works 753,755 1,432,829 679,074 1,718,134 285,305 Culture and recreation 1,270,826 1,316,626 45,800 1,378,220 61,594 Total charges for services 3,101,894 3,904,238 802,344 4,245,472 341,234 Fines and forfeitures 240,000 240,000 - 196,228 (43,772) Special assessments - 67,000 67,000 83,355 16,355 Investment income Interest earnings 500,000 500,000 - 560,232 60,232 Increase (decrease) in fair market value - - - 446,600 446,600 Total investment income 500,000 500,000 - 1,006,832 506,832 Miscellaneous revenues Contributions and donations 34,500 121,336 86,836 124,852 3,516 Other 84,017 53,017 (31,000) 125,399 72,382 Total miscellaneous 118,517 174,353 55,836 250,251 75,898 Total Revenues 43,999,038 45,247,874 1,248,836 46,200,263 952,389 Budgeted Amounts City of Lakeville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued on the Follow Pages) For the Year Ended December 31, 2025 126 Page 354 of 420 City of Lakeville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2025 Budget Actual Variance with Original Final Amendments Amounts Final Budget Expenditures Current General government Mayor and council Personnel services 53,290$ 53,290$ -$ 53,848$ (558)$ Other services and charges 73,031 73,031 - 79,388 (6,357) Total mayor and council 126,321 126,321 - 133,236 (6,915) City administration Personnel services 525,849 525,744 (105) 536,994 (11,250) Supplies 2,295 2,295 - (153) 2,448 Other services and charges 58,945 58,945 - 56,719 2,226 Total city administration 587,089 586,984 (105) 593,560 (6,576) Committees/commissions Personnel services 80,297 46,400 (33,897) 44,555 1,845 Supplies 25 200 175 180 20 Other services and charges 63,100 60,800 (2,300) 57,104 3,696 Total committees/commissions 143,422 107,400 (36,022) 101,839 5,561 City clerk Personnel services 159,290 159,255 (35) 159,867 (612) Supplies 920 920 - 219 701 Other services and charges 65,369 65,369 - 50,596 14,773 Total city clerk 225,579 225,544 (35) 210,682 14,862 Human resources Personnel services 512,536 512,361 (175) 482,643 29,718 Supplies 1,110 1,110 - 560 550 Other services and charges 174,843 179,831 4,988 120,818 59,013 Total human resources 688,489 693,302 4,813 604,021 89,281 General government facilities Personnel services 416,566 416,461 (105) 399,317 17,144 Supplies 24,467 24,467 - 21,901 2,566 Other services and charges 228,958 228,958 - 197,582 31,376 Total general government facilities 669,991 669,886 (105) 618,800 51,086 Legal counsel Other services and charges 87,000 88,500 1,500 112,590 (24,090) Finance Personnel services 1,065,537 1,065,257 (280) 997,729 67,528 Supplies 3,550 3,550 - 1,299 2,251 Other services and charges 166,552 166,552 - 155,329 11,223 Total finance 1,235,639 1,235,359 (280) 1,154,357 81,002 Insurance coverage Other services and charges 250,000 250,000 - 250,000 - Community and economic development Personnel services 949,914 949,704 (210) 928,198 21,506 Supplies 2,566 2,566 - 1,812 754 Other services and charges 137,169 139,011 1,842 133,123 5,888 Total community and economic development 1,089,649 1,091,281 1,632 1,063,133 28,148 Inspections Personnel services 1,553,563 1,553,155 (408) 1,431,925 121,230 Supplies 21,102 21,102 - 11,539 9,563 Other services and charges 343,457 343,457 - 291,916 51,541 Total inspections 1,918,122 1,917,714 (408) 1,735,380 182,334 Information technology Personnel services 433,635 433,495 (140) 429,209 4,286 Supplies 4,070 4,070 - 852 3,218 Other services and charges 551,441 551,441 - 434,850 116,591 Total information technology 989,146 989,006 (140) 864,911 124,095 Total general government 8,010,447 7,981,297 (29,150) 7,442,509 538,788 Budgeted Amounts 127 Page 355 of 420 City of Lakeville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2025 Budget Actual Variance with Original Final Amendments Amounts Final Budget Expenditures (Continued) Current (continued) Public safety Police Personnel services 13,852,542$ 13,736,447$ (116,095)$ 13,530,529$ 205,918$ Supplies 543,256 543,256 - 559,283 (16,027) Other services and charges 2,817,154 2,817,154 - 2,697,556 119,598 Total police 17,212,952 17,096,857 (116,095) 16,787,368 309,489 Fire protection Personnel services 4,819,340 4,932,434 113,094 4,757,192 175,242 Supplies 381,796 381,796 - 341,631 40,165 Other services and charges 387,163 388,563 1,400 431,101 (42,538) Total fire protection 5,588,299 5,702,793 114,494 5,529,924 172,869 Total public safety 22,801,251 22,799,650 (1,601) 22,317,292 482,358 Public works Engineering Personnel services 797,262 796,982 (280) 744,778 52,204 Supplies 6,725 6,725 - 4,207 2,518 Other services and charges 142,735 146,975 4,240 86,894 60,081 Total engineering 946,722 950,682 3,960 835,879 114,803 Forestry Personnel services 264,962 264,892 (70) 248,774 16,118 Supplies 8,058 8,058 - 8,388 (330) Other services and charges 353,090 483,686 130,596 471,987 11,699 Total forestry 626,110 756,636 130,526 729,149 27,487 Construction services Personnel services 603,504 555,825 (47,679) 486,045 69,780 Supplies 11,789 11,889 100 9,398 2,491 Other services and charges 20,540 20,540 - 14,426 6,114 Total construction services 635,833 588,254 (47,579) 509,869 78,385 Street maintenance Personnel services 2,887,534$ 2,886,671$ (863)$ 2,660,946$ 225,725$ Supplies 858,422 858,422 - 825,395 33,027 Other services and charges 663,762 663,762 - 628,467 35,295 Total street maintenance 4,409,718 4,408,855 (863) 4,114,808 294,047 Total public works 6,618,383 6,704,427 86,044 6,189,705 514,722 Culture and recreation Park maintenance Personnel services 2,789,797 2,789,167 (630) 2,877,683 (88,516) Supplies 432,424 432,424 - 347,955 84,469 Other services and charges 546,431 546,431 - 502,283 44,148 Total park maintenance 3,768,652 3,768,022 (630) 3,727,921 40,101 Recreation Personnel services 670,398 695,093 24,695 658,170 36,923 Supplies 52,080 52,080 - 61,582 (9,502) Other services and charges 403,940 403,940 - 427,366 (23,426) Total recreation 1,126,418 1,151,113 24,695 1,147,118 3,995 Budgeted Amounts 128 Page 356 of 420 City of Lakeville, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2025 Budget Actual Variance with Original Final Amendments Amounts Final Budget Expenditures (Continued) Arts center Personnel services 611,882 635,382 23,500 661,032 (25,650) Supplies 87,191 87,191 - 88,757 (1,566) Other services and charges 323,561 323,561 - 339,851 (16,290) Total arts center 1,022,634 1,046,134 23,500 1,089,640 (43,506) Total culture and recreation 5,917,704 5,965,269 47,565 5,964,679 590 Total current 43,347,785 43,450,643 102,858 41,914,185 1,536,458 Capital outlay General government - 59,977 59,977 67,238 (7,261) Public safety 15,000 43,400 28,400 43,446 (46) Public works 119,539 128,147 8,608 130,857 (2,710) Culture and recreation 11,100 18,600 7,500 20,215 (1,615) Total capital outlay 145,639 250,124 104,485 261,756 (11,632) Total Expenditures 43,493,424 43,700,767 207,343 42,175,941 1,524,826 Excess (Deficiency) of Revenues Over(Under) Expenditures 505,614 1,547,107 1,041,493 4,024,322 2,477,215 Other Financing Sources (Uses) Sale of capital assets 7,479 9,979 2,500 14,897 4,918 Transfers in 170,000 54,500 (115,500) 54,500 - Transfers out - (1,850,000) (1,850,000) (1,850,000) - Total Other Financing Sources (Uses)177,479 (1,785,521) (1,963,000) (1,780,603) 4,918 Net Change in Fund Balances 683,093 (238,414) (921,507) 2,243,719 2,482,133 Fund Balances, January 1 23,186,629 23,186,629 - 23,186,629 - Fund Balances, December 31 23,869,722$ 22,948,215$ (921,507)$ 25,430,348$ 2,482,133$ Budgeted Amounts 129 Page 357 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 130 Page 358 of 420 NONMAJOR SPECIAL REVENUE FUNDS Nonmajor Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service, capital projects, or activities as required by deferral regulations, Minnesota Statutes, City Charter provisions, local ordinances, or specific grant agreements. Most of the special revenue funds are related to specific Federal and State housing programs or grants for specific activities. Nonmajor special revenue funds presently established are as follows: Communications Fund - This fund accounts for franchise fees from cable TV provider operations. Expenditures and other financing uses are used to finance the City’s cable TV channels and public communications, including long-term replacement of equipment. Downtown Special Service District Fund - This fund was created in 1998 pursuant to Minnesota Statute 428A. A service charge, payable with property taxes, is levied against the commercial properties in the Downtown Business District for the purpose of financing budgeted programs and activities within the District. Opioid Settlement Fund - This fund is used to account for opioid settlement revenues and the related expenditures restricted to opioid remediation activities. Local Affordable Housing Fund – This fund is used to account for local affordable housing aid revenues and the related expenditures restricted to local affordable housing activities. 131 Page 359 of 420 Downtown Local Special Opioid Affordable Communications Service District Settlement Housing Aid Total Assets Cash and investments 939,710$ 10,534$ 155,513$ 635,458$ 1,741,215$ Receivables Accrued interest 6,224 60 1,096 - 7,380 Accounts 106,712 - - - 106,712 Total Assets 1,052,646$ 10,594$ 156,609$ 635,458$ 1,855,307$ Liabilities Accounts payable 1,315$ -$ -$ -$ 1,315$ Accrued salaries and withholdings payable 12,187 - - - 12,187 Total Liabilities 13,502 - - - 13,502 Deferred Inflows of Resources Deferred lease resources 43,167 - - - 43,167 Fund Balances Restricted 156,032 10,594 156,609 635,458 958,693 Committed 839,945 - - - 839,945 Total Fund Balances 995,977 10,594 156,609 635,458 1,798,638 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,052,646$ 10,594$ 156,609$ 635,458$ 1,855,307$ City of Lakeville, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2025 132 Page 360 of 420 Downtown Local Special Opioid Affordable Communications Service District Settlement Housing Aid Total Revenues Franchise taxes 450,722$ -$ -$ -$ 450,722$ Intergovernmental - - - 635,458 635,458 Charges for services 36,223 - - - 36,223 Investment income Interest earnings 35,343 370 4,419 - 40,132 Increase in fair market value 27,905 297 3,243 - 31,445 Miscellaneous revenues Refunds and reimbursements - - 62,539 - 62,539 Rents 2,000 - - - 2,000 Total Revenues 552,193 667 70,201 635,458 1,258,519 Expenditures Current General government 786,126 3,480 - 229,465 1,019,071 Capital outlay General government 48,700 - - - 48,700 Total Expenditures 834,826 3,480 - 229,465 1,067,771 Excess (Deficiency) of Revenues Over (Under) Expenditures (282,633) (2,813) 70,201 405,993 190,748 Other Financing Sources (Uses) Transfers out (4,155) - (24,500) - (28,655) Net Change in Fund Balances (286,788) (2,813) 45,701 405,993 162,093 Fund Balances, January 1 1,282,765 13,407 110,908 229,465 1,636,545 Fund Balances, December 31 995,977$ 10,594$ 156,609$ 635,458$ 1,798,638$ Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2025 City of Lakeville, Minnesota 133 Page 361 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 134 Page 362 of 420 PROPRIETARY FUNDS Internal Service Funds – These funds are used as an accounting device to accumulate and allocate costs internally amongst the City’s various functions. Municipal Reserve Fund - This fund accounts for the City’s risk management program relating to general liability, excess liability, property, workers compensation, and casualty insurance costs which are charged to other City departments on a cost reimbursement basis. Compensated Leave Fund - This fund accounts for the accrued liability of employee benefits attributed to compensated leave. Funding was initially provided by transfers from the General Fund. Future revenue sources are charged to benefited programs and departments. Benefits paid to Enterprise Fund employees are accounted for in their respective funds. 135 Page 363 of 420 Municipal Compensated Reserves Leave Total Assets Cash and investments 473,159$ 638,296$ 1,111,455$ Receivables Accrued interest 2,303 3,912 6,215 Accounts 14,762 - 14,762 Total Assets 490,224$ 642,208$ 1,132,432$ Liabilities Accounts payable 9,466$ -$ 9,466$ Compensated absences payable - 3,584,350 3,584,350 Total Liabilities 9,466 3,584,350 3,593,816 Net Position Unrestricted 480,758 (2,942,142) (2,461,384) Total Liabilities and Net Position 490,224$ 642,208$ 1,132,432$ Internal Service Funds Governmental Activities - City of Lakeville, Minnesota Internal Service Funds Combining Statement of Net Position December 31, 2025 136 Page 364 of 420 Municipal Compensated Reserves Leave Totals Operating Revenues User charges 369,992$ 234,129$ 604,121$ Other revenue 281,746 - 281,746 Total Operating Revenues 651,738 234,129 885,867 Operating Expenses Personnel services - (22,589) (22,589) Professional services 706,610 - 706,610 Total Operating Expenses 706,610 (22,589) 684,021 Operating Income (Loss)(54,872) 256,718 201,846 Nonoperating Revenues (Expenses) Investment income Interest earnings 3,692 21,798 25,490 Increase (decrease) in fair market value 3,471 16,661 20,132 Total Nonoperating Revenues (Expenses)7,163 38,459 45,622 Change in Net Position (47,709) 295,177 247,468 Net Position, January 1 528,467 (3,237,319) (2,708,852) Net Position, December 31 480,758$ (2,942,142)$ (2,461,384)$ Internal Service Funds Governmental Activities - City of Lakeville, Minnesota Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds For the Year Ended December 31, 2025 137 Page 365 of 420 Budgeted Amounts Actual Variance with Original and Final Amounts Final Budget Revenues Franchise taxes 489,685$ 450,722$ (38,963)$ Charges for services 34,116 36,223 2,107 Investment income Interest earnings 6,052 35,343 29,291 Increase (decrease) in fair market value 2,000 27,905 25,905 Miscellaneous revenues Rents - 2,000 2,000 Total Revenues 531,853 552,193 20,340 Expenditures Current General government 805,067 786,126 (18,941) Capital outlay General government 33,000 48,700 15,700 Total Expenditures 838,067 834,826 (3,241) Excess (Deficiency) of Revenues Over (Under) Expenditures (306,214) (282,633) 23,581 Other Financing Sources (Uses) Transfers out (4,155) (4,155) - Net Change in Fund Balances (310,369) (286,788) 23,581 Fund Balances, January 1 1,282,765 1,282,765 - Fund Balances, December 31 972,396$ 995,977$ 23,581$ For the Year Ended December 31, 2025 City of Lakeville, Minnesota Communications Fund Budgeted Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 138 Page 366 of 420 Budget Actual Variance with Original Final Amendments Amounts Final Budget Revenues Investment income Interest earnings 3,027$ 3,027$ -$ 4,419$ 1,392$ Increase (decrease) in fair market value - - - 3,243 3,243 Miscellaneous revenues Refunds and reimbursements 62,539 62,539 - 62,539 - Total Revenues 65,566 65,566 - 70,201 4,635 Other Financing Sources (Uses) Transfers out (140,000) (24,500) 115,500 (24,500) - Net Change in Fund Balances (74,434) 41,066 115,500 45,701 4,635 Fund Balances, January 1 110,908 110,908 - 110,908 - Fund Balances, December 31 36,474$ 151,974$ 115,500$ 156,609$ 4,635$ Budgeted Amounts City of Lakeville, Minnesota Opioid Settlement Fund Budgeted Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2025 139 Page 367 of 420 Budget Actual Variance with Original Final Amendments Amounts Final Budget Revenues Taxes 12,773,049$ 12,773,049$ -$ 12,773,050$ 1$ Franchise taxes - - - 3,826,574 3,826,574 Intergovernmental 326,560 326,560 - 615,966 289,406 Charges for services 801,672 801,672 - 306,205 (495,467) Special assessments 2,283,934 2,283,934 - 2,473,017 189,083 Investment income Interest earnings 464,882 464,882 - 487,163 22,281 Increase (decrease) in fair market value - - - 360,029 360,029 Total Revenues 16,650,097 16,650,097 - 20,842,004 4,191,907 Expenditures Debt service Principal 13,175,000 13,175,000 - 12,910,000 (265,000) Interest and other charges 5,474,738 5,474,738 - 5,503,356 28,618 Total Expenditures 18,649,738 18,649,738 - 18,413,356 (236,382) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,999,641) (1,999,641) - 2,428,648 4,428,289 Other Financing Sources (Uses) Transfers in 1,954,691 1,954,691 - 1,954,691 - Issuance of bonds - - - 791,245 791,245 Transfers out - (1,053,598) (1,053,598) (1,053,598) - Total Other Financing Sources (Uses)1,954,691 901,093 (1,053,598) 1,692,338 791,245 Net Change in Fund Balances (44,950) (1,098,548) (1,053,598) 4,120,986 5,219,534 Fund Balances, January 1 23,590,844 23,590,844 - 23,590,844 - Fund Balances, December 31 23,545,894$ 22,492,296$ (1,053,598)$ 27,711,830$ 5,219,534$ Budgeted Amounts City of Lakeville, Minnesota Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2025 140 Page 368 of 420 Budget Actual Variance with Original Final Amendments Amounts Final Budget Revenues Taxes 3,100,000$ 3,100,000$ -$ 3,100,000$ -$ Tax increment 435,382 463,857 28,475 487,297 23,440 Intergovernmental 13,516,840 21,630,948 8,114,108 11,013,428 (10,617,520) Charges for services 4,795,046 9,117,945 4,322,899 9,740,473 622,528 Special assessments 10,180 11,687 1,507 565,568 553,881 Investment income Interest earnings 422,772 1,158,572 735,800 3,002,946 1,844,374 Increase (decrease) in fair market value - - - 1,538,818 1,538,818 Miscellaneous revenues Contributions and donations 100,000 368,967 268,967 368,446 (521) Rents 512,757 512,757 - 555,399 42,642 Total Revenues 22,892,977 36,364,733 13,471,756 30,372,375 (5,992,358) Expenditures Capital outlay General government 597,693 991,101 393,408 836,314 154,787 Public safety 25,663,250 49,110,929 23,447,679 18,212,836 30,898,093 Public works 32,063,960 33,728,820 1,664,860 28,924,671 4,804,149 Culture and recreation 15,586,596 17,332,777 1,746,181 16,660,943 671,834 Total Expenditures 73,911,499 101,163,627 27,252,128 64,634,764 36,528,863 Excess (Deficiency) of Revenues Over (Under) Expenditures (51,018,522) (64,798,894) (13,780,372) (34,262,389) 30,536,505 Other Financing Sources (Uses) Sale of capital assets 300,000 300,000 - 428,214 128,214 Transfers in 1,100,779 3,906,004 2,805,225 3,906,004 - Issuance of bonds and other debt 7,449,317 24,709,143 17,259,826 30,375,658 5,666,515 Premiums on bonds issued - 1,031,777 1,031,777 1,031,777 - Transfers out (685,846) (685,846) - (685,846) - Total Other Financing Sources (Uses)8,164,250 29,261,078 21,096,828 35,055,807 5,794,729 Net Change in Fund Balances (42,854,272) (35,537,816) 7,316,456 793,418 36,331,234 Fund Balances, January 1 79,690,723 79,690,723 - 79,690,723 - Fund Balances, December 31 36,836,451$ 44,152,907$ 7,316,456$ 80,484,141$ 36,331,234$ Budgeted Amounts City of Lakeville, Minnesota Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2025 141 Page 369 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 142 Page 370 of 420 STATISTICAL SECTION (UNAUDITED) CITY OF LAKEVILLE LAKEVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2025 143 Page 371 of 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 144 Page 372 of 420 STATISTICAL SECTION (UNAUDITED) This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. 145 Page 373 of 420 2016 2017 2018 2019 Governmental Activities Net investment in capital assets 149,196,480$ 144,581,700$ 142,300,205$ 154,468,792$ Restricted 35,860,604 46,683,603 45,267,313 56,356,434 Unrestricted 4,277,626 6,036,382 15,427,439 24,178,084 Total Governmental Activities Net Position 189,334,710$ 197,301,685$ 202,994,957$ 235,003,310$ Business-type Activities Net investment in capital assets 129,086,090$ 135,324,120$ 138,725,763$ 143,501,608$ Restricted 323,875 323,875 - - Unrestricted 9,757,400 10,791,344 13,878,208 15,142,309 Total Business-type Activities Net Position 139,167,365$ 146,439,339$ 152,603,971$ 158,643,917$ Primary Government Net investment in capital assets 278,282,570$ 279,905,820$ 281,025,968$ 297,970,400$ Restricted 36,184,479 47,007,478 45,267,313 56,356,434 Unrestricted 14,035,026 16,827,726 29,305,647 39,320,393 Total Primary Government Net Position 328,502,075$ 343,741,024$ 355,598,928$ 393,647,227$ (1)(2) Notes: (1)The City implemented GASB Statement No. 75 in 2018, recording a change in accounting principle that decreased unrestricted net position. Prior year balances were not restated. (2)The City implemented GASB Statement No. 84 in 2019, recording a change in accounting principle that increased restricted net position. Prior year balances were not restated. City of Lakeville, Minnesota Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 146 Page 374 of 420 Table 1 2020 2021 2022 2023 2024 2025 167,619,658$ 183,876,386$ 218,867,352$ 240,987,608$ 259,538,899$ 243,091,334$ 69,458,557 69,329,217 82,302,974 73,224,358 72,430,099 79,019,597 32,249,615 39,709,366 16,378,884 17,814,210 18,284,630 49,328,289 269,327,830$ 292,914,969$ 317,549,210$ 332,026,176$ 350,253,628$ 371,439,220$ 151,132,001$ 170,514,908$ 180,563,445$ 188,259,693$ 199,011,990$ 210,016,244$ - - - - - - 18,258,536 25,479,132 28,938,525 32,950,342 37,450,763 41,126,959 169,390,537$ 195,994,040$ 209,501,970$ 221,210,035$ 236,462,753$ 251,143,203$ 318,751,659$ 354,391,294$ 399,430,797$ 429,238,301$ 458,550,889$ 453,107,578$ 69,458,557 69,329,217 82,302,974 73,224,358 72,430,099 79,019,597 50,508,151 65,188,498 45,317,409 50,764,552 55,735,393 90,455,248 438,718,367$ 488,909,009$ 527,051,180$ 553,227,211$ 586,716,381$ 622,582,423$ - - Fiscal Year 147 Page 375 of 420 2016 2017 2018 2019 Expenses Governmental Activities General government 8,028,316$ 4,579,478$ 7,203,308$ 7,902,490$ Public safety 16,369,670 14,250,572 14,141,045 14,927,426 Public works 17,711,240 18,944,454 22,336,416 21,015,480 Culture and recreation 5,626,149 6,645,057 6,661,852 7,178,164 Interest on long-term debt 3,930,168 3,268,426 3,468,814 3,332,465 Total Governmental Activities Expenses 51,665,543 47,687,987 53,811,435 54,356,025 Business-type Activities Liquor 13,268,419 13,638,043 14,234,337 15,267,133 Utility 13,558,839 14,138,885 14,815,914 16,386,516 Total Business-type Activities Expenses 26,827,258 27,776,928 29,050,251 31,653,649 Total Primary Government Expenses 78,492,801$ 75,464,915$ 82,861,686$ 86,009,674$ Program Revenues Governmental Activities Charges for services General government 4,094,298$ 4,348,910$ 5,584,036$ 6,506,302$ Public safety 954,395 934,444 1,059,236 838,664 Public works 8,401,512 7,081,317 6,792,249 9,166,886 Culture and recreation 3,685,202 2,369,615 2,455,851 4,098,580 Operating grants and contributions General government 772,998 68,095 23,772 97,964 Public safety 989,342 1,061,252 1,149,691 1,168,857 Public works 4,942,834 1,382,380 4,313,934 3,142,430 Culture and recreation 91,869 55,300 11,422 204,737 Capital grants and contributions General government 138,593 62,101 61,193 116,750 Public safety 8,500 - - - Public works 23,604,519 13,018,689 9,183,039 21,234,628 Culture and recreation 2,932,612 182,387 194,327 112,725 Total Governmental Activities Program Revenues 50,616,674 30,564,490 30,828,750 46,688,523 Business-type Activities Charges for services Liquor 14,130,830 14,583,514 1,527,643 16,288,986 Utility 10,692,185 12,585,450 13,613,145 14,215,952 Operating grants and contributions Liquor 3,762 6,716 13,421 6,453 Utility 111,572 166,227 51,035 643,919 Capital grants and contributions Utility 8,973,280 4,791,313 4,075,854 7,240,758 Total Business-type Activities Program Revenues 33,911,629 32,133,220 19,281,098 38,396,068 Total Primary Government Program Revenues 84,528,303$ 62,697,710$ 50,109,848$ 85,084,591$ Fiscal Year City of Lakeville, Minnesota Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) 148 Page 376 of 420 Table 2 2020 2021 2022 2023 2024 2025 8,994,404$ 8,966,246$ 9,999,721$ 9,899,710$ 9,524,931$ 9,025,433$ 16,063,433 14,226,059 19,313,383 20,139,088 21,818,556 25,614,766 22,623,378 21,462,578 25,477,542 29,136,552 27,274,347 34,288,620 6,578,004 7,791,954 7,762,349 10,117,834 11,644,154 12,426,288 3,147,896 1,199,275 3,966,703 2,903,304 3,535,602 2,655,538 57,407,115 53,646,112 66,519,698 72,196,488 73,797,590 84,010,645 16,735,031 18,069,171 20,652,588 21,726,194 21,357,518 20,782,362 17,518,091 17,512,988 20,307,370 22,854,878 22,236,710 23,084,176 34,253,122 35,582,159 40,959,958 44,581,072 43,594,228 43,866,538 91,660,237$ 89,228,271$ 107,479,656$ 116,777,560$ 117,391,818$ 127,877,183$ 6,573,673$ 6,303,733$ 7,064,177$ 6,587,921$ 7,452,928$ 5,956,779$ 638,887 817,539 810,708 835,053 819,342 801,341 11,300,325 10,569,326 9,903,121 6,620,758 5,774,455 8,109,882 3,071,803 5,501,844 5,568,006 2,506,421 4,796,412 4,911,005 917,379 156,783 206,244 76,861 175,668 727,054 5,100,592 1,270,607 6,425,656 4,655,977 1,823,715 3,394,709 3,461,526 547,841 7,056,438 3,681,717 249,629 6,188,891 316,067 89,442 668,708 978,532 119,004 609,239 149,610 79,173 55,044 304,539 380,326 - - - - - - - 23,710,868 24,529,021 22,352,046 16,919,544 18,802,885 14,578,024 180,924 195,025 165,277 205,018 295,363 709,755 55,421,654 50,060,334 60,275,425 43,372,341 40,689,727 45,986,679 18,262,397 19,683,002 21,894,980 22,692,555 22,647,127 22,002,600 17,308,481 21,235,961 22,031,929 22,715,704 21,287,682 22,621,501 76,810 5,445 8,778 163 38,882 90,431 85,499 489,647 786,804 1,028,276 178,555 966,662 10,045,894 14,094,676 11,492,752 5,739,878 9,866,907 9,304,958 45,779,081 55,508,731 56,215,243 52,176,576 54,019,153 54,986,152 101,200,735$ 105,569,065$ 116,490,668$ 95,548,917$ 94,708,880$ 100,972,831$ Fiscal Year 149 Page 377 of 420 2016 2017 2018 2019 Net (Expense)/Revenue Governmental activities (1,048,869)$ (17,123,497)$ (22,982,685)$ (7,667,502)$ Business-type activities 7,084,371 4,356,292 (9,769,153) 6,742,419 Total Primary Government Net Expense 6,035,502$ (12,767,205)$ (32,751,838)$ (925,083)$ General Revenues and other Changes in Net Position Governmental Activities Property taxes 26,173,822$ 27,317,169$ 28,641,302$ 30,897,445$ Franchise taxes - - - - Unrestricted investment earnings (loss)388,672 597,513 907,138 2,769,074 Transfers (6,978,829) (2,824,210) (492,418) 1,162,124 Other general revenues - - - - Gain on sale of capital assets - - - - Total Governmental Activities 19,583,665 25,090,472 29,056,022 34,828,643 Business-type Activities Unrestricted investment earnings (loss)71,109 91,472 160,165 459,651 Gain on sale of capital assets - - 1,601,334 - Transfers 6,978,829 2,824,210 492,418 (1,162,124) Total Business-type Activities 7,049,938 2,915,682 2,253,917 (702,473) Total Primary Government 26,633,603$ 28,006,154$ 31,309,939$ 34,126,170$ Change in Net Position Governmental activities 18,534,796$ 7,966,975$ 6,073,337$ 27,161,141$ Business-type activities 14,134,309 7,271,974 (7,515,236) 6,039,946 Total Primary Government 32,669,105$ 15,238,949$ (1,441,899)$ 33,201,087$ (1)(2) Notes: (1)The City implemented GASB Statement No. 75 in 2018, recording a change in accounting principle that decreased unrestricted net position. Prior year balances were not restated. (2)The City implemented GASB Statement No. 84 in 2019, recording a change in accounting principle that increased restricted net position. Prior year balances were not restated. Fiscal Year Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) City of Lakeville, Minnesota 150 Page 378 of 420 Table 2 2020 2021 2022 2023 2024 2025 (1,985,461)$ (3,585,778)$ (6,244,273)$ (28,824,147)$ (33,107,863)$ (38,023,966)$ 11,525,959 19,926,572 15,255,285 7,595,504 10,424,925 11,119,614 9,540,498$ 16,340,794$ 9,011,012$ (21,228,643)$ (22,682,938)$ (26,904,352)$ 33,033,079$ 35,051,089$ 36,822,483$ 40,247,761$ 44,289,880$ 49,493,826$ - - - - 531,252 4,311,494 2,144,654 (1,003,311) (6,316,145) 5,834,294 5,630,680 6,512,987 1,132,248 (6,874,861) 372,176 (2,789,942) 892,503 (1,663,938) - - - - - 112,078 - - - - - 443,111 36,309,981 27,172,917 30,878,514 43,292,113 51,344,315 59,209,558 352,909 (197,930) (1,375,179) 1,322,619 1,368,137 1,896,898 - - - - - - (1,132,248) 6,874,861 (372,176) 2,789,942 (892,503) 1,663,938 (779,339) 6,676,931 (1,747,355) 4,112,561 475,634 3,560,836 35,530,642$ 33,849,848$ 29,131,159$ 47,404,674$ 51,819,949$ 62,770,394$ 34,324,520$ 23,587,139$ 24,634,241$ 2,063,815$ 2,448,342$ 21,185,592$ 10,746,620 26,603,503 13,507,930 3,023,528 1,165,191 14,680,450 45,071,140$ 50,190,642$ 38,142,171$ 5,087,343$ 3,613,533$ 35,866,042$ Fiscal Year 151 Page 379 of 420 2016 2017 2018 2019 General Fund Nonspendable 695,830$ 914,375$ 876,394$ 748,231$ Restricted - - - 175,590 Committed - - - 100,000 Assigned 1,478,522 741,864 705,500 749,675 Unassigned 12,902,148 13,613,203 14,011,567 15,429,752 Total General Fund 15,076,500$ 15,269,442$ 15,593,461$ 17,203,248$ All other Governmental Funds Nonspendable -$ -$ 11,630$ -$ Restricted 37,947,697 29,887,820 25,773,762 36,333,665 Committed 21,651,118 26,519,559 30,327,238 36,071,889 Unassigned (726,681) (876,594) (415,577) (428,702) Total All Other Governmental Funds 58,872,134$ 55,530,785$ 55,697,053$ 71,976,852$ Total Governmental Funds Nonspendable 695,830$ 914,375$ 888,024$ 748,231$ Restricted 37,947,697 29,887,820 25,773,762 36,509,255 Committed 21,651,118 26,519,559 30,327,238 36,171,889 Assigned 1,478,522 741,864 705,500 749,675 Unassigned 12,175,467 12,736,609 13,595,990 15,001,050 Total Governmental Funds 73,948,634$ 70,800,227$ 71,290,514$ 89,180,100$ All governmental funds percentage change 18.4%-4.3%70.0%25.1% City of Lakeville, Minnesota Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) Fiscal Year 152 Page 380 of 420 Table 3 2020 2021 2022 2023 2024 2025 811,338$ 666,451$ 254,180$ 279,568$ 352,765$ 202,134$ - 5,000 - 1,850,000 1,850,000 - 200,000 - - - - - 1,675,125 2,493,300 2,711,000 1,528,414 - 775,000 22,053,166 20,821,071 19,042,227 18,715,015 20,983,864 24,453,214 24,739,629$ 23,985,822$ 22,007,407$ 22,372,997$ 23,186,629$ 25,430,348$ -$ -$ -$ -$ -$ -$ 41,694,538 46,337,784 63,559,319 51,346,145 57,262,599 67,386,542 40,241,806 44,233,989 44,954,814 48,514,099 47,971,292 42,608,067 (1,084,565) (993,783) (622,177) (30,377) (315,779) - 80,851,779$ 89,577,990$ 107,891,956$ 99,829,867$ 104,918,112$ 109,994,609$ 811,338$ 666,451$ 254,180$ 279,568$ 352,765$ 202,134$ 41,694,538 46,342,784 63,559,319 53,196,145 59,112,599 67,386,542 40,441,806 44,233,989 44,954,814 48,514,099 47,971,292 42,608,067 1,675,125 2,493,300 2,711,000 1,528,414 - 775,000 20,968,601 19,827,288 18,420,050 18,684,638 20,668,085 24,453,214 105,591,408$ 113,563,812$ 129,899,363$ 122,202,864$ 128,104,741$ 135,424,957$ 18.4%7.6%14.4%-5.9%4.8%5.7% Fiscal Year 153 Page 381 of 420 Revenues Property taxes and tax increment 26,131,569$ 27,401,195$ 28,612,384$ 30,855,832$ Licenses and permits 3,706,567 3,988,189 3,899,604 4,492,109 Intergovernmental 9,043,356 3,771,886 5,090,762 8,901,495 Charges for services 13,289,708 10,016,017 11,828,549 15,046,177 Special assessments 2,308,223 2,812,587 3,139,103 3,683,354 Investment earnings (loss)387,604 597,513 907,138 2,769,074 Donations 550,255 238,383 309,970 211,969 Miscellaneous 2,828,177 846,035 835,986 861,800 Total Revenues 58,245,459 49,671,805 54,623,496 66,821,810 Expenditures General government 5,783,013 6,424,260 6,656,824 7,028,626 Public safety 11,513,170 12,775,807 13,061,572 13,496,719 Public works 4,245,072 9,786,321 4,741,200 4,802,149 Culture and recreation 3,497,041 5,222,503 3,998,735 4,178,410 Capital outlay 37,938,823 11,995,449 25,065,276 20,906,745 Debt service Principal 5,935,000 6,885,000 10,420,000 8,920,000 Interest and other 3,970,010 3,881,179 3,948,999 3,877,764 Other charges 327,052 129,158 96,729 44,429 Total Expenditures 73,209,181 57,099,677 67,989,335 63,254,842 Deficiency of Revenues Under Expenditures (14,963,722) (7,427,872) (13,365,839) 3,566,968 Other Financing Sources (Uses) Transfers in 5,179,668 8,355,474 6,038,479 5,120,699 Transfers out (3,222,237) (6,661,840) (4,167,132) (2,980,605) Issuance of bonds 31,075,000 11,987,171 13,805,000 6,295,000 Premium/discount on debt issued (9,535,000) (11,368,146) (3,320,000) - Payment on refunded bonds called 2,626,731 1,309,907 1,005,336 1,065,624 Sale of capital assets - 516,380 530,734 107,645 Total Other Financing Sources (Uses)26,124,162 4,138,946 13,892,417 9,608,363 Net Change in Fund Balances 11,160,440$ (3,288,926)$ 526,578$ 13,175,331$ Debt Service as a Percentage of Noncapital Expenditures 19.6 %22.6 %26.9 %25.7 % Note: The City has no taxes other than property taxes and tax increment. Fiscal Year City of Lakeville, Minnesota Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2019201820172016 154 Page 382 of 420 32,983,369$ 35,146,364$ 36,815,539$ 40,226,889$ 44,329,727$ 53,752,737$ 5,600,853 5,081,480 4,490,895 4,091,103 3,052,954 3,661,713 14,571,858 3,813,869 17,279,101 15,259,457 3,985,196 15,906,170 15,239,684 17,343,792 17,586,719 11,096,772 14,461,853 14,328,373 3,953,438 3,023,130 3,478,667 7,934,564 2,945,985 3,121,940 2,144,654 (1,003,311) (6,316,145) 5,834,294 5,630,680 6,467,365 232,689 268,898 200,642 309,521 333,933 493,298 800,067 775,140 1,310,631 953,242 1,059,472 941,565 75,526,612 64,449,362 74,846,049 85,705,842 75,799,800 98,673,161 8,061,485 7,950,888 8,377,090 8,238,696 8,583,505 8,461,580 14,251,367 15,283,047 15,836,333 17,432,946 19,567,238 22,317,292 4,692,478 4,987,928 5,139,700 5,844,020 5,611,535 6,189,705 3,888,960 4,486,389 4,863,528 5,407,841 5,995,649 5,964,679 34,788,668 32,856,512 42,577,218 54,049,585 34,781,975 64,945,220 9,715,000 9,160,000 7,861,201 13,161,000 17,164,120 12,910,000 3,871,110 4,064,943 4,179,644 5,006,042 4,936,874 5,423,205 38,098 82,573 324,787 42,577 109,177 80,151 79,307,166 78,872,280 89,159,501 109,182,707 96,750,073 126,291,832 (3,780,554) (14,422,918) (14,313,452) (23,476,865) (20,950,273) (27,618,671) 6,522,720 9,636,510 15,996,085 8,829,311 3,254,905 5,915,195 (4,180,711) (7,736,781) (14,621,216) (6,576,539) (1,097,886) (3,618,099) 15,164,036 19,294,225 47,874,860 12,361,337 22,295,792 31,166,903 - - (23,540,000) - - 1,031,777 2,391,960 1,090,191 4,115,966 779,235 1,389,304 - 249,015 258,880 868,415 307,368 414,647 443,111 20,147,020 22,543,025 30,694,110 15,700,712 26,256,762 34,938,887 16,366,466$ 8,120,107$ 16,380,658$ (7,776,153)$ 5,306,489$ 7,320,216$ 25.8 %24.5 %22.0 %22.0 %31.1 %26.1 % Fiscal Year Table 4 202520242023202220212020 155 Page 383 of 420 2016 2017 2018 2019 Taxable Net Tax Capacity Valuation of Taxable Property Tax capacity value 65,634,896$ 69,887,094$ 75,422,344$ 82,737,259$ Less: Captured tax increment tax capacity (497,171) (596,348) (609,048) (774,382) Contributions to fiscal disparities pool (5,411,614) (5,524,685) (5,828,030) (6,190,357) Plus: Distribution from fiscal disparities pool 6,635,572 7,139,972 7,672,379 8,151,580 Total taxable net tax capacity 66,361,683$ 70,906,033$ 76,657,645$ 83,924,100$ Taxable Net Tax Capacity Valuation by Class of Property Homestead residential 49,048,168 52,427,026 57,017,144 63,032,149 Commercial/industrial, public utility, and personal property 14,754,095 15,842,447 16,870,980 17,893,911 Non-homestead residential/apartments 1,656,581 1,736,856 1,938,329 2,206,240 Agriculture and seasonal/recreational 902,839 899,704 831,192 791,800 Total taxable net tax capacity 66,361,683$ 70,906,033$ 76,657,645$ 83,924,100$ Assessor's taxable market valuation 5,825,279,418$ 6,201,221,856$ 6,702,242,762$ 7,374,033,988$ Taxable net tax capacity as a percentage of assessor's taxable market value 1.139%1.143%1.144%1.138% Direct tax capacity rate 38.669%37.510%36.419%35.607% Notes: Taxes are determined by multiplying the taxable net tax capacity by the direct tax capacity rate as expressed as a percentage. The foregoing direct tax capacity rates do not reflect reductions for state property tax credits. Source: Dakota County Auditor and Treasurer's Office. Fiscal Year City of Lakeville, Minnesota Tax Capacity Valuation and Assessor's Taxable Market Value of Taxable Property Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 156 Page 384 of 420 Table 5 2020 2021 2022 2023 2024 2025 90,729,405$ 97,138,303$ 106,343,200$ 130,077,811$ 142,366,672$ 148,106,050$ (856,909) (1,085,470) (1,084,201) (647,312) (854,791) (551,072) (6,645,636) (6,925,361) (7,645,703) (7,858,132) (8,872,466) (10,309,804) 9,049,794 9,522,500 10,270,657 11,246,438 11,867,551 13,002,066 92,276,654$ 98,649,972$ 107,883,953$ 132,818,805$ 144,506,966$ 150,247,240$ 69,577,579 73,762,668 81,813,145 101,495,866 108,705,378 110,544,418 19,164,426 20,997,684 21,583,053 25,302,537 28,643,461 32,009,505 2,738,491 3,143,112 3,810,748 5,256,004 6,594,941 7,165,658 796,158 746,508 677,007 764,398 563,186 527,659 92,276,654$ 98,649,972$ 107,883,953$ 132,818,805$ 144,506,966$ 150,247,240$ 8,106,672,140$ 8,636,691,303$ 9,503,255,659$ 11,592,195,438$ 12,546,610,519$ 12,932,974,002$ 1.138%1.142%1.135%1.146%1.152%1.162% 34.615%34.351%32.846%29.676%30.213%32.731% Fiscal Year 157 Page 385 of 420 Fiscal Year 2016 30.455 %8.214 %38.669 %28.570 %192 57.584 %0.19065 % 194 35.319 0.27898 196 24.317 0.26999 2017 29.342 8.168 37.510 28.004 192 54.269 0.18481 194 32.914 0.25441 196 23.336 0.27380 2018 29.305 7.114 36.419 26.580 192 52.825 0.18495 194 32.992 0.26835 196 21.352 0.26715 2019 27.192 8.415 35.607 25.386 192 51.401 0.18968 194 32.535 0.26992 196 20.613 0.26162 2020 26.682 7.933 34.615 24.133 192 53.105 0.18904 194 34.851 0.31225 196 19.860 0.34367 2021 26.281 8.070 34.351 22.716 192 50.805 0.18392 194 33.894 0.27269 196 20.046 0.32712 2022 25.755 7.091 32.846 21.630 192 49.481 0.18244 194 33.983 0.25582 196 19.971 0.31336 2023 22.485 7.191 29.676 18.816 192 38.497 0.18725 194 29.473 0.26581 196 17.904 0.29771 2024 22.476 7.737 30.213 18.323 192 36.439 0.19446 194 29.650 0.27666 196 23.624 0.30078 2025 24.424 8.307 32.731 19.948 192 37.634 0.15974 194 29.927 0.24436 196 22.968 0.28528 Notes: Taxes are determined by multiplying the taxable net tax capacity by the tax capacity rate and market value based rate expressed as a percentage. The foregoing tax capacity rates do not reflect reductions for state property tax credits. Special Districts include: Metropolitan Mosquito Control, Metropolitan Council, Metropolitan Transit District, Dakota County Community Development Agency, Light Rail Authority, and Vermillion River Watershed District. Source: Dakota County Auditor and Treasurer's Office. Per Dakota County - Final Tax Rates Pay 2025 table City of Lakeville General Levy (Tax Capacity-Based) Overlapping Rates Ind. School District School District General Levy (Tax Capacity- based)Operating Debt Service Total Direct Rates Dakota County General Levy (Tax Capacity- based) Referendum Levy (Market Value-based) City of Lakeville, Minnesota Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years 158 Page 386 of 420 %5.063 %129.886 %0.19065 % 107.621 0.27898 96.619 0.26999 4.907 124.690 0.18481 103.335 0.25441 93.757 0.27380 4.307 120.131 0.18495 100.298 0.26835 88.658 0.26715 4.227 116.621 0.18968 97.755 0.26992 85.833 0.26162 4.030 115.883 0.18904 97.629 0.31225 82.638 0.34367 3.802 111.674 0.18392 94.763 0.27269 80.915 0.32712 3.729 107.686 0.18244 92.188 0.25582 78.176 0.31336 3.201 90.190 0.18725 81.166 0.26581 69.597 0.29771 3.264 88.239 0.19446 81.450 0.27666 75.424 0.30078 3.325 93.638 0.15974 85.931 0.24436 78.972 0.28528 Districts Special Market Value- based Overlapping Rates Total Direct and Tax Capacity- based City of Lakeville, Minnesota Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Table 6 159 Page 387 of 420 Table 7City of Lakeville, Minnesota Taxable Tax Taxable Capacity Assessed Principal Property Taxpayer Type of Business Value Rank Value Rank SP Lakeville Development LLC Industrial 1,187,256$ 1 0.8 % IRET Southfork Apartments LLC Apartments 690,794 2 0.5 330,854$ 3 0.5 % Continental 476 Fund LLC Apartment 662,500 3 0.4 Fulford Group, LLC Industrial 563,594 4 0.4 Minnegasco/Centerpoint Utility 551,256 5 0.4 291,298 6 0.4 Echelon Lakeville LLC Apartments 547,501 6 0.4 NLL LLC Apartments 534,160 7 0.4 Lakeville MOB Partners LLC Commercial 522,312 8 0.3 First Industrial LP Industrial 521,250 9 0.3 STAG Industrial Holdings LLC Industrial 504,370 10 0.3 Lakeville 2004, LLC Commercial 328,838 1 0.5 EREP Heritage Commons, LLC Retail 325,364 2 0.5 Inland Argonne Village, LLC Retail 267,020 4 0.4 Dakota Electric Association Utility 285,868 5 0.4 Walker Highview Hills, LLC Apartments 259,216 7 0.4 Target Corporation Retail 255,234 8 0.4 AGNL Exercise LLC Commercial 240,066 9 0.4 Xcel Energy Utility 226,854 10 0.3 Total principal taxpayers 6,284,993 4.2 %2,810,612 4.24 % All other taxpayers 143,962,247 95.8 %63,551,071 95.8 % Total City of Lakeville taxpayers 150,247,240$ 100.0 %66,361,683$ 100.0 % Source: Dakota County Auditor and Treasurer's Office. Note: Due to a shift in value in 2022 from local base to countywide - Dakota Electric Association is no longer included in the listing of largest taxpayers. Value Value Total Taxable Total Taxable 2025 2016 Percentage of Percentage of Principal Property Taxpayers Current Year and Nine Years Ago Assessed Assessed 160 Page 388 of 420 Table 8 Last Ten Fiscal Years Fiscal Year Collection Ended Total of Prior Total Percent December 31,Tax Levy (1)Amount (2)Year Levy (3)Collections of Levy 2016 25,679,619 25,566,236 99.56 %113,383 25,679,619 100.00 % 2017 26,679,614 26,534,636 99.46 144,978 26,679,614 100.00 2018 28,001,550 27,857,045 99.48 144,505 28,001,550 100.00 2019 29,948,890 29,815,159 99.55 133,731 29,948,890 100.00 2020 32,031,000 31,840,067 99.40 190,933 32,031,000 100.00 2021 33,911,570 33,753,733 99.53 157,278 33,911,011 100.00 2022 35,590,000 35,485,096 99.71 104,904 35,590,000 100.00 2023 39,771,000 39,513,394 99.35 257,606 39,771,000 100.00 2024 43,596,800 43,351,372 99.44 191,376 43,542,748 99.88 2025 48,850,050 48,535,971 99.36 - 48,535,971 99.36 Notes: (1) Total levy is net of current year cancellations and abatements. (2) Total tax levy and current tax collections include state paid credits. (3) Includes county adjustments for prior year over collections, cancellations, and abatements. City of Lakeville, Minnesota Property Tax Levies and Tax Collections Percent Collection of Current Year's Levy 161 Page 389 of 420 General Loans and Fiscal Obligation Other Notes Financed Lease Revenue Year Bonds Bonds Payable Purchase Liability Bond 2016 121,958,354$ 7,781,645$ 1,159,843$ -$ -$ 9,952,577$ 2017 113,666,228 7,417,448 1,897,014 - - 8,258,468 2018 112,553,287 7,018,251 3,897,014 - - 8,571,877 2019 111,718,611 6,614,054 2,897,014 - - 8,876,565 2020 115,000,111 6,199,857 7,071,050 1,810,000 - 11,566,742 2021 124,710,301 5,685,403 12,945,275 1,570,000 - 11,729,716 2022 148,534,254 - 12,408,934 1,325,000 3,689,281 10,605,601 2023 146,062,184 - 13,024,271 1,075,000 3,374,280 9,386,085 2024 155,757,324 - 8,130,944 815,000 3,047,078 8,140,730 2025 164,497,865 - 15,600,357 550,000 2,711,772 6,854,192 N/A = Not Available Source: (1) Metropolitan Council as of April 1 (except for 2020 Federal Census). (2) See Demographic and Economic Statistics page. City of Lakeville, Minnesota Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Business-Type Activities 162 Page 390 of 420 Table 9 Total Outstanding Per Debt Population (1)Capita 140,852,419$ 60,965 4.2 %2,310$ 131,239,158 61,993 3.7 2,117 132,040,429 64,334 3.4 2,052 130,106,244 65,831 3.2 1,976 141,647,760 69,490 3.0 2,038 156,640,695 72,135 3.2 2,171 176,563,070 73,828 3.4 2,392 172,921,820 75,217 3.1 2,299 175,891,076 76,746 2.9 2,292 190,214,186 78,810 N/A 2,414 Income (2) Personal Percentage of 163 Page 391 of 420 Table 10City of Lakeville, Minnesota Net Gross Debt Payable Debt Service Net Taxable Bonded Fiscal Bonded from Other Monies Bonded Net Tax Debt Year Debt Sources (1)Available (2)Debt Capacity Population (3)per Capita 2016 121,958,354$ 64,845,000$ 15,928,687$ 41,184,667$ 66,361,683$ 62.06 %60,965 676$ 2017 123,338,676 67,940,000 6,261,464 49,137,212 70,906,033 69.30 61,993 793 2018 121,826,538 70,660,000 4,128,788 47,037,750 76,657,645 61.36 64,334 731 2019 120,372,665 71,840,000 4,239,541 44,293,124 83,924,100 52.78 65,831 673 2020 124,906,982 75,440,000 4,355,292 45,111,690 92,276,654 48.89 69,490 649 2021 124,710,301 69,405,000 4,373,669 50,931,632 98,649,972 51.63 72,135 706 2022 148,534,254 73,205,000 1,648,727 73,680,527 107,883,953 68.30 73,828 998 2023 146,062,184 66,690,000 5,664,382 73,707,802 132,818,805 55.50 75,217 980 2024 155,757,324 66,185,000 7,316,263 82,256,061 144,506,966 56.92 76,746 1,072 2025 164,497,865 52,580,000 9,037,939 102,879,926 150,247,240 68.47 78,810 1,305 Source: (1) G.O. Improvement bonds, tax increment bonds, State-aid street revenue bonds, water connection revenue bonds, and arena revenue bonds. (2) Debt service monies available include amounts restricted in the debt service funds repaying the related debt. We believe this is the most accurate and consistent representation of the resources restricted for debt service when crossover refunding bonds are being held in escrow, as those resources are not included in the governmental activities net position restricted for debt service due to conversion for full accrual accounting. (3) Metropolitan Council as of April 1 (except for 2020 Federal Census). Total Estimated Taxable Market Value of Property Percentage of Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years 164 Page 392 of 420 Table 11City of Lakeville, Minnesota Debt Outstanding (1)Amount Direct Debt City of Lakeville 180,098,222$ 100.00 %180,098,222$ Overlapping Debt School District No. 191 167,015,000 75.20 125,595,280 School District No. 271 82,410,000 22.82 18,805,962 School District No. 719 358,710,000 8.07 28,947,897 Special District Metropolitan Council 178,505,000 2.39 4,266,270 Total Overlapping Debt 786,640,000 177,615,409 Total Direct and Overlapping Debt 966,738,222$ 357,713,631$ Source: Debt figures and applicable percentages for other than the City of Lakeville are provided by the City's fiscal consultant Northland Securities. (1)Overlapping governments are those that coincide, at least in part, with the geographical boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the governments ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (2)The percentage of overlapping debt applicable is estimated using taxable property market values. Applicable percentages were estimated by determining the portion of the county's taxable market value that is within the City's boundaries and dividing it by the county's total taxable market value. Percentage (2) Computation of Direct and Overlapping Debt December 31, 2025 Net Tax Capacity of the City Debt Applicable to Taxable 165 Page 393 of 420 Table 12City of Lakeville, Minnesota Net Bonded Assessor’s Net Bonded Debt Applicable Taxable Debt Legal to Debt Limit as Fiscal Market Legal Applicable to Debt a Percentage of Year Valuation Debt Limit Debt Limit Margin Legal Debt Limit 2016 5,825,279,418 174,758,383 34,776,313 139,982,070 19.90% 2017 6,201,221,856 186,036,656 32,593,536 153,443,120 17.52% 2018 6,702,242,762 201,067,283 32,676,212 168,391,071 16.25% 2019 7,374,033,988 221,221,020 30,120,459 191,100,561 13.62% 2020 8,106,672,140 243,200,164 25,799,708 217,400,456 10.61% 2021 8,636,691,303 259,100,739 42,081,331 217,019,408 16.24% 2022 9,503,255,659 285,097,670 63,586,273 221,511,397 22.30% 2023 11,592,195,438 347,765,863 64,670,618 283,095,245 18.60% 2024 12,546,610,519 376,398,316 73,548,737 302,849,579 19.54% 2025 12,932,974,002 387,989,220 94,772,061 293,217,159 24.43% Legal Debt Margin Calculation:Fiscal Year 2025 Assessor’s taxable market valuation 12,932,974,002$ Legal debt limit: 3% of Assessor’s taxable market valuation 387,989,220$ Amount of debt applicable to legal debt limit: Gross bonded debt 163,395,000$ Less debt payable from sources other than taxes: G.O. Improvement bonds 44,900,000$ State-aid street revenue bonds 3,045,000 Water connection revenue bonds 4,635,000 HRA lease revenue 550,000 Water revenue bonds 6,405,000 Street Light revenue bonds 50,000 (59,585,000) Debt payable from taxes 103,810,000 Less debt service monies available to pay principal and interest (9,037,939) Net bonded debt applicable to debt limit 94,772,061 94,772,061 Legal debt margin 293,217,159$ Note: Minnesota Statutes § 475.53, Subdivision 1, No municipality, except a school district or a city of the first class, shall incur or be subject to a net debt in excess of three percent of the taxable market value of taxable property in the municipality for years 2008 and beyond. Source: Dakota County Auditor and Treasurer's Office. Legal Debt Margin Last Ten Fiscal Years 166 Page 394 of 420 Table 13City of Lakeville, Minnesota Net Revenue Available Fiscal Gross Operating for Debt Year Revenues (1)Expenses Service Principal Interest Total 2016 10,530,436$ 5,389,869$ 5,140,567$ 595,000$ 652,577$ 1,247,577$ 4.12 % 2017 12,234,365 5,193,095 7,041,270 1,005,000 690,010 1,695,010 4.15 2018 8,361,880 3,099,485 5,262,395 865,000 513,715 1,378,715 3.82 2019 8,610,576 3,156,154 5,454,422 895,000 478,105 1,373,105 3.97 2020 11,989,250 6,222,639 5,766,611 750,000 439,350 1,189,350 4.85 2021 14,204,060 3,975,650 10,228,410 785,000 408,525 1,193,525 8.57 2022 13,233,699 5,077,177 8,156,522 420,000 368,110 788,110 10.35 2023 13,654,066 7,104,056 6,550,010 645,000 312,600 957,600 6.84 2024 10,737,574 5,817,588 4,919,986 680,000 281,575 961,575 5.12 2025 11,867,948 4,696,095 7,171,853 710,000 256,350 966,350 7.42 Notes: (1) The primary revenue source for debt service includes water system connection charges, water system user fees, ice arena net operating revenue and contributions from one organization conducting lawful gambling at approved locations, and liquor fund gross profits. (2) Revenue bonds include water connection revenue, arena revenue, and liquor revenue. Pledged Revenue Coverage Enterprise Funds Revenue Bonds Coverage Last Ten Fiscal Years Requirements (2)Times 167 Page 395 of 420 Table 14 Percentage Personal Per Capita Increase from Income (2)Personal Housing units Year Population (1)Previous Year (in thousands)Income Single Multiple Total Valuation 2016 60,965 1.62%3,351,551 54,975 403 62 465 139,008,000 2017 61,993 1.69%3,573,153 57,638 487 44 531 160,520,000 2018 64,334 3.78%3,901,921 60,651 478 49 527 159,251,000 2019 65,831 2.33%4,075,861 61,914 556 64 620 180,622,000 2020 69,490 5.56%4,499,339 64,748 742 73 815 223,050,000 2021 72,135 3.81%4,899,914 67,927 663 73 736 205,419,000 2022 73,828 2.35%5,166,779 69,984 387 160 547 139,685,000 2023 75,217 1.88%5,642,704 75,019 367 94 461 123,241,000 2024 76,746 2.03%5,977,439 77,886 385 49 434 123,839,003 2025 78,810 2.69%N/A N/A 347 201 548 161,041,465 Annual percentage increase average last ten fiscal years 2.77%129.27%17,845 Labor Unemployment Labor Unemployment State of United Year Force Rate Force Rate Minnesota States 2016 33,793 3.0%232,091 3.4%4.1%4.5% 2017 34,911 2.5%239,356 2.7%3.3%4.1% 2018 35,758 2.4%240,195 2.7%3.2%3.7% 2019 36,610 2.7%242,855 2.9%3.5%3.4% 2020 36,025 3.8%233,902 4.3%4.9%6.5% 2021 37,007 2.2%236,441 2.4%2.7%3.7% 2022 38,904 2.5%241,966 2.7%3.2%3.3% 2023 38,692 2.5%240,731 2.7%3.2%3.3% 2024 43,071 2.0%249,642 2.2%2.6%3.8% 2025 43,924 3.2%253,014 3.8%4.3%4.1% Source: (1) Metropolitan Council as of April 1 (except for 2020 Federal Census). (2) U.S. Department of Commerce Bureau of Economic Analysis as of December 31, 2024, not seasonally adjusted. (3) City of Lakeville Inspections Department. N/A - Not available. Labor Force and Unemployment Rate (not seasonally adjusted) (2) City of Lakeville Dakota County Rates City of Lakeville, Minnesota Demographic and Economic Statistics Last Ten Fiscal Years Building Permits Issued Family Dwellings (3) 168 Page 396 of 420 Table 15 Principal Employer (1)Product/Service Employees Rank %Employees Rank % Independent School District #194 Elementary & secondary schools 1,334 1 3.0%1,370 1 4.0% Hy-Vee Grocery 800 2 1.8%- Hearthside Food Solutions Food service contractors 707 3 1.6%630 2 2.1% Treehouse Brands Breakfast cereal products 500 4 1.1%515 3 1.5% Amazon XL Fulfillment Center Warehouse & distribution 450 5 1.0%- Post Consumer Brands Cereal production 415 6 0.9%327 5 0.7% City of Lakeville (2)City government 285 7 0.6%216 8 0.6% BTD Manufacturing Metal manufacturing 390 8 0.9%210 9 0.6% Menasha Corporation Corrugated & solid fiber box mfg.286 9 0.7%237 6 0.7% Schmitty & Sons Bus Company Transportation 270 10 0.6%- Imperial Plastics, Inc Plastics material & resin mfg.- 450 4 Despatch Industries, Inc.Industrial furnace & oven mfg.- 230 7 0.7% Jeff Belzer's Chevy-Dodge-KIA New & used auto dealership - 200 10 0.6% Total principal employers 5,437 12.4%4,385 13.0% All other employers 38,487 87.6%29,408 87.0% Total City of Lakeville civilian labor force (3)43,924 100.0%33,793 100.0% Source: (1) Reference USA. (2) As of December 31, 2025 (full-time equivalent). (3) MN Department of Employment and Economic Development (DEED) as of December 31, 2025. 2025 2016 City of Lakeville, Minnesota Principal Employers Fiscal Years Ended December 31, 2025 and December 31, 2026 169 Page 397 of 420 Function/Program 2016 2017 2018 2019 General government City administration 3.0 3.0 3.0 3.0 Communications 3.9 4.5 5.2 5.2 City clerk 1.0 1.0 1.0 1.0 Finance 6.7 7.0 7.0 6.7 Information Technology 3.1 3.8 4.0 4.0 Human resources 4.0 4.0 4.0 4.0 Planning 3.5 4.2 4.5 4.5 Community and economic development 2.5 2.4 2.5 2.5 Protective inspection 8.0 8.4 9.0 9.1 General government buildings 4.6 5.5 6.0 6.2 Total general government 40.3 43.8 46.2 46.2 Public safety Police officers (sworn)54.7 54.6 57.0 61.0 Police dispatchers - Police administration 13.4 14.8 13.1 13.6 Fire (excluding volunteer firefighters)5.5 5.4 5.4 5.4 Total public safety 73.6 74.8 75.5 80.0 Public works Engineering 6.6 7.6 7.3 7.5 Forestry N/A N/A N/A N/A Construction Services 3.7 3.3 4.0 4.7 Street maintenance 21.6 21.7 21.9 22.7 Total public works 31.9 32.6 33.2 34.9 Parks and recreation Park maintenance 14.0 15.1 16.4 16.6 Recreation 5.8 6.5 6.4 6.5 Arts center 3.7 3.6 3.8 3.7 Total parks and recreation 23.5 25.2 26.6 26.8 Total governmental activities 169.3 176.4 181.5 187.9 Liquor 25.3 26.1 26.0 26.3 Utility 21.3 23.1 24.3 24.6 Total business-type activities 46.6 49.2 50.3 50.9 Total employees 215.9 225.6 231.8 238.8 Source: City of Lakeville Human Resources Department. Note: Includes full-time equivalent for both full and part-time employees and accounts for overtime. Seasonal employees are not included for purposes of this report. City of Lakeville, Minnesota Employees by Function/Program (Full-Time Equivalent) Last Ten Fiscal Years 170 Page 398 of 420 Table 16 2020 2021 2022 2023 2024 2025 3.0 3.0 2.6 3.0 2.9 3.0 5.0 5.2 5.2 4.9 4.2 4.5 1.0 1.0 1.6 1.0 1.0 1.0 6.7 6.7 7.1 8.5 7.8 7.9 4.0 4.0 4.0 3.6 4.0 4.0 4.0 4.0 4.0 5.0 5.2 5.0 4.5 4.2 4.8 3.5 - - 2.5 2.5 3.3 2.5 5.8 6.0 9.8 10.3 10.5 10.2 9.9 9.8 6.5 5.7 5.3 5.4 5.4 5.5 47.0 46.6 48.4 47.6 46.2 46.7 61.7 61.0 66.4 65.5 67.0 69.7 14.5 13.7 12.1 13.8 14.0 13.7 5.4 5.4 6.0 6.3 13.0 27.7 81.6 80.1 84.5 85.6 94.0 111.1 7.3 8.3 7.3 7.3 7.9 7.0 N/A N/A N/A 2.0 1.8 2.0 4.9 5.3 4.1 4.5 3.2 4.3 23.0 22.2 22.9 22.1 20.7 24.1 35.2 35.8 34.3 35.9 33.6 37.4 16.3 15.4 16.5 18.2 18.4 19.2 6.3 7.8 7.5 6.5 6.5 6.4 3.2 4.3 4.5 4.0 4.0 6.1 25.8 27.5 28.5 28.7 28.9 31.7 189.6 190.0 195.7 197.8 202.7 226.9 26.5 29.9 36.6 36.6 38.4 37.5 24.0 24.0 25.8 23.1 23.4 20.6 50.5 53.9 62.4 59.7 61.8 58.1 240.1 243.9 258.1 257.5 264.5 285.0 171 Page 399 of 420 Function 2016 2017 2018 2019 General government Number of registered voters 41,124 N/A 41,693 N/A Number of final plats approved 19 20 25 16 Number of building permits issued 6,522 6,931 7,303 10,065 Valuation of building permits issued (in millions)238$ 271$ 250$ 301$ Public safety Total calls for service 47,724 38,036 43,268 46,006 Traffic stops 18,239 15,680 18,412 18,700 Non-traffic related calls 29,485 22,356 24,856 27,306 Number of volunteer firefighters 85 86 82 88 Number of full-time firefighters - - - - Number of annual fire calls 1,347 1,477 1,500 1,694 Public works City street miles added 17.0 3.1 3.6 7.5 Parks and recreation Park acres mowed 430 430 430 430 Park building reservations taken 79 90 118 147 Shelter reservations taken 382 453 458 465 Recreation participants registered 2,692 3,434 3,473 3,909 Recreation league teams 129 142 149 154 Heritage Center reservations 275 308 340 367 Heritage Center active adult membership 941 1,089 1,112 1,194 Art Center registrations N/A N/A N/A N/A Liquor Annual sales (in millions)14.1$ 14.6$ 16.9$ 16.4$ Utility (in millions of gallons) Water (average daily consumption)5.5 5.8 5.8 5.2 Sanitary sewer (1)3.4 3.4 3.5 3.5 (average daily treatment) Notes: (1) Sewage is treated by the Metropolitan Council Environmental Services. N/A - Indicates information is not available for this period at the printing of this report. Source: Various City of Lakeville Departments. City of Lakeville, Minnesota Operating Indicators by Function Last Ten Fiscal Years 172 Page 400 of 420 Table 17 2020 2021 2022 2023 2024 2025 44,511 N/A 48,064 N/A 49,723 N/A 20 20 22 8 16 19 10,609 10,313 10,342 10,554 7,992 7,923 442$ 371$ 321$ 257$ 258$ 331$ 32,327 35,784 42,258 51,565 53,165 47,033 8,024 6,214 9,605 12,143 11,795 10,961 24,303 27,783 32,653 39,422 41,370 36,072 85 90 90 70 65 65 - - - - 6 21 1,998 2,794 3,114 3,266 3,593 4,162 7.0 10.8 5.4 4.7 5.3 5.1 430 430 450 455 455 462 61 98 124 157 410 380 277 542 507 322 576 628 1,517 3,647 4,104 4,835 4,494 5,348 78 98 114 150 305 479 145 201 267 337 352 304 1,205 1,134 1,143 1,490 1,607 1,666 N/A N/A 1,376 1,543 2,155 2,188 18.3$ 19.6$ 21.7$ 22.6$ 22.6$ 22.2$ 6.3 7.5 7.4 7.8 6.2 6.7 3.6 3.8 3.8 4.0 3.9 4.3 173 Page 401 of 420 Function (1)2016 2017 2018 2019 Public safety Police station 1 1 1 1 Fire stations 4 4 4 4 Public works City streets (miles)288.3 291.4 295.0 302.5 Parks and recreation Acres of parks, conservation areas, and greenways 1,600 1,600 1,600 1,677 Parks 60 60 61 61 Conservation areas 20 20 20 20 Trails and sidewalks - paved (miles)110 111 117 118 Ice rinks - outdoor (fully boarded)11 11 11 11 Ice rinks - indoor 3 3 3 3 Fields (softball, soccer, baseball, football, lacrosse)96 96 97 97 Courts (basketball, volleyball, tennis, pickleball)38 43 43 43 Playgrounds 44 44 46 46 Swimming beaches 3 3 3 2 Liquor Number of on-sale stores owned 2 2 1 1 Number of on-sale stores leased 1 1 2 2 Utility Water Water mains (miles)321 346 350 358 Fire hydrants 3,572 3,818 3,885 3,969 Wells 18 18 19 19 Water towers 5 6 6 6 Sanitary sewer Sanitary sewer mains (miles)261 261 264 270 Sanitary sewer lift stations 20 20 20 20 Notes: (1) Indicators for general government functions are not available. Source: Various City of Lakeville Departments. City of Lakeville, Minnesota Capital Assets Statistics by Function Last Ten Fiscal Years 174 Page 402 of 420 Table 18 2020 2021 2022 2023 2024 2025 1 1 1 1 1 1 4 4 4 4 4 4 309.5 320.3 325.7 330.4 335.7 340.8 1,677 1,677 1,706 1,706 1,706 1,843 61 61 65 67 67 68 20 20 20 20 20 20 120 120 130 142 142 142 11 11 11 11 11 11 3 3 3 3 3 3 97 97 98 101 101 92 43 47 47 56 56 68 46 47 47 50 50 51 2 2 2 2 2 2 1 2 2 2 2 2 2 2 2 2 2 2 367 380 387 396 396 401 4,080 4,374 4,494 4,595 4,595 4,686 19 19 19 19 19 20 6 6 6 6 6 6 278 288 295 303 303 306 20 20 20 19 19 19 175 Page 403 of 420 Executive Governance Summary City of Lakeville Lakeville, Minnesota For the year ended December 31, 2025 Page 404 of 420 June 26, 2026 Management, Honorable Mayor and City Council City of Lakeville, Minnesota We have audited the financial statements the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Lakeville, Minnesota (the City) for the year ended December 31, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and Uniform Guidance as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 3, 2025. Professional standards also require that we communicate the following information related to our audit. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, and noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit. Also, in accordance with the Uniform Guidance, we examined, on a test basis, evidence about the City’s compliance with the types of compliance requirements described in the “U.S. Office of Management and Budget (OMB) Compliance Supplement” applicable to each of its major Federal programs for the purpose of expressing an opinion on the City’s compliance with those requirements and for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City’s compliance with those requirements. 2 Page 405 of 420 Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies were not changed during the year ended December 31, 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumption about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements are included below: • Management’s estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. • Allocations of gross wages and payroll benefits are approved by the City Council within the City’s budget and are derived from each employee’s estimated time to be spent serving in the respective function of the City. These allocations are also used in allocating accrued compensated absences payable. • Management’s estimate of its pension liability is based on several factors including, but not limited to, anticipated investment return rate, retirement age for active employees, life expectancy, salary increases and form of annuity payment upon retirement. • Management’s estimate of its OPEB liability is based on several factors including, but not limited to, anticipated retirement age for active employees, life expectance, turnover, and healthcare cost trend rates. • Management’s estimate of its lease receivable is based on the present value of lease payments expected to be received during the lease term. • Management’s estimate of future paid sick time usage is based on historical usage data. We evaluated the key factors and assumptions used to develop these estimates in determining that they are reasonable in relation to the financial statements as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. 3 Page 406 of 420 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 26, 2026. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management’s Discussion and Analysis, the Schedules of Employer’s Share of the Net Pension Liability, the Schedules of Employer’s Contributions, the Schedule of Changes in the City's OPEB Liability and Related Ratios, and the respective budgetary comparison schedules and related note disclosures), which is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the supplementary information (combining and individual fund financial statements and schedules and schedule of federal awards), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory or statistical sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information, and we do not express an opinion or provide any assurance on them. 4 Page 407 of 420 Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future City financial statements: GASB Statement No. 103 – Financial Reporting Model Improvements Effective: 12/31/2026 GASB Statement No. 104 – Disclosure of Certain Capital Assets Effective: 12/31/2026 Further information on upcoming GASB pronouncements. * * * * * Restriction on Use This communication is intended solely for the information and use of the City Council, management and the Minnesota Office of the State Auditor and is not intended and should not be used by anyone other than those specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service and for the courtesy and cooperation extended to us by your staff. Abdo Minneapolis, Minnesota June 26, 2026 5 Page 408 of 420 Other Required Reports City of Lakeville Lakeville, Minnesota For the year ended December 31, 2025 Page 409 of 420 City of Lakeville, Minnesota Other Required Reports Table of Contents For the Year Ended December 31, 2025 Page No. Single Audit and Other Required Reports Independent Auditor’s Report on Minnesota Legal Compliance 3 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 4 Independent Auditor’s Report on Compliance For Each Major Program and Report on Internal Control over Compliance Required By the Uniform Guidance 6 Schedule of Expenditures of Federal Awards 9 Notes to the Schedule of Expenditures of Federal Awards 10 Schedule of Findings and Questioned Costs 11 2 Page 410 of 420 INDEPENDENT AUDITOR’S REPORT ON MINNESOTA LEGAL COMPLIANCE Honorable Mayor and City Council City of Lakeville, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of City of Lakeville as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 26, 2026. In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. Abdo Minneapolis, Minnesota June 26, 2026 3 Page 411 of 420 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and City Council City of Lakeville, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Lakeville, Minnesota (the City), as of and for the year ended December 31, 2025 and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 26, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 4 Page 412 of 420 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Abdo Minneapolis, Minnesota June 26, 2026 5 Page 413 of 420 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM ON INTERNAL CONTROL OVER COMPLIANCE, AND ON THE SCHEDULE OF EXPENDITURES OF AWARDS REQUIRED BY THE UNIFORM GRANT GUIDANCE Honorable Mayor and City Council City of Lakeville, Minnesota Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Lakeville, Minnesota (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2025. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City ’s compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City’s federal programs. 6 Page 414 of 420 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City ’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 7 Page 415 of 420 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City, as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated June 26, 2026, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Abdo Minneapolis, Minnesota June 26, 2026 8 Page 416 of 420 City of Lakeville, Minnesota Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2025 Federal Grantor Assistance Pass-Through Agency Listing Federal Program or Cluster Title Number Clusters Expenditures U.S. Department of Transportation State and Community Highway Safety 20.600 Minnesota Department Revenue 18,634$ Total Highway Safety Cluster 18,634$ U.S. Department of Housing and Urban Development Community Development Block Grants/Entitlement Grants 14.218 Minnesota Department Revenue 78,596 Economic Development Initiative - Community Project Funding 14.251 Minnesota Department Revenue 800,000 Total U.S. Department of Housing and Urban Development 878,596 U.S. Department of Justice Bulletproof Vest Partnership Program 16.607 Minnesota Department Revenue 18,403 U.S. Department of Homeland Security Staffing for Adequate Fire and Emergency Response (SAFER)97.083 Direct 1,386,252 Total Federal Awards 2,301,885$ Administering Department 9 Page 417 of 420 City of Lakeville, Minnesota Notes to the Schedule of Expenditures of Federal Awards For the Year Ended December 31, 2025 1. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Lakeville, Minnesota (the City) under programs of the federal government for the year ended December 31, 2025. The City's reporting entity is defined in Note 1A to the City's financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City. 2. Summary of Significant Accounting Policies for Expenditures Expenditures reported on this schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122 or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 3. Pass-through Entity Identifying Numbers Pass-through entity identifying numbers are presented where available. 4. Subrecipients No federal expenditures presented in this schedule were provided to subrecipients. 5. Indirect Cost Rate During the year ended December 31, 2025, the City did not elect to use the 15 percent de minimis indirect cost rate. 10 Page 418 of 420 City of Lakeville, Minnesota Schedule of Findings and Questioned Costs For the Year Ended December 31, 2025 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued Unmodified Internal control over financial reporting Material weaknesses identified?No Significant deficiencies identified not considered to be material weaknesses?None reported Noncompliance material to financial statements noted?No Federal Awards Internal control over major programs Material weaknesses identified?No Significant deficiencies identified not considered to be material weaknesses?None reported Type of auditor's report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2CFR section 200.516(a).No Identification of Major Programs/Projects ALN Staffing for Adequate Fire and Emergency Response (SAFER)97.083 Dollar threshold used to distinguish between Type A and Type B Programs 1,000,000$ Auditee qualified as low-risk auditee?No Section II - Financial Statement Findings Section III - Major Federal Award Findings and Questioned Costs There are no significant deficiencies, material weaknesses, or instances of noncompliance including questioned costs that are required to be reported in accordance with the Uniform Guidance. None 11 Page 419 of 420 Date: 7/20/2026 Next City Council Meeting August 3, 2026 Proposed Action Staff recommends adoption of the following motion: Overview Supporting Information None Financial Impact: $ Budgeted: No Source: Envision Lakeville Community Values: Report Completed by: Page 420 of 420