HomeMy WebLinkAbout06.27.23
CITY OF ST. JOSEPH
www.cityofstjoseph.com
75 Callaway Street East | Saint Joseph, Minnesota 56374
Email: cityoffices@cityofstjoseph.com | Phone: 320.363.7201 | Fax 320.363.0342
St. Joseph City Council AMENDED
June 27, 2023
6:00 PM
**The City Council meeting will be conducted in-person in the council chambers of the St.
Joseph Government Center. Members of the public can attend in-person or via Zoom. **
Join Zoom Meeting
https://us06web.zoom.us/j/85939834689?pwd=Mm9CK1VYVU5tTEd3T2lWK3p6N2thQT09
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1. 6:00 PM Call to order - Pledge of Allegiance
2. Public Comments Up to 3 speakers will be allowed for up to 3 minutes each to address
the council with questions/concerns/comments (regarding an item NOT on the agenda). No
Council response or action will be given/taken other than possible referral to Administration.
3. Approve Agenda
4. Consent Agenda
a. Minutes – Requested Action: Approve the minutes of June 5, 2023.
b. Bills Payable – Requested Action: Approve Check Numbers 60598-60683, Account
Payable & Payroll EFT #3060-3078; Regular Pay Period 12.
c. Donations – Requested Action: Accept the Donations as presented.
d. Local Option Sales Tax Resolution – Requested Action: Approve Resolution 2023-029
Approving Special Legislation MN Laws and submit the Certificate of Special Law by
Governing Body to the MN Secretary of State.
e. Interior Easement Vacation Request, Northland Heights – Requested Action: Approve
Resolution 2023-030 Approving interior easement vacation request.
5. Public Hearing – 2023 Street Improvement Project Assessment Hearing
6. 2022 Audit Presentation, BerganKDV
7. Series 2023A Bond Issue
8. Street Closure Request – Millstream Arts Festival
9. Special Event Permit – Rock 4 Alzheimer’s, Bad Habit Brewing Company
10. Consideration of Approval of Agreement between the City of St. Joseph and Northern Natural
Gas
11. Engineer Reports
12. Department Reports
13. Mayor and Council Reports and Miscellaneous Business
14. Adjourn
June 5th, 2023
Page 1 of 2
Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in regular session
on Monday, June 5th, 2023, at 6:00PM in the St. Joseph Government Center.
Members Present: Mayor Rick Schultz, Councilmembers Kevin Kluesner, Bob Loso
Absent: Councilmembers Kelly Beniek, Adam Scepaniak
City Representatives Present: Administrator David Murphy, Finance Director Lori Bartlett, Public Works
Director Ryan Wensmann, City Clerk Kayla Klein, Police Chief Dwight Pfannenstein, City Engineers
Randy Sabart and Bryce Johnson, Recreation Director Rhonda Juell
Others Present: St. Joseph Fire Fighter Keith Louwagie
Public Comments: None.
Approve Agenda: Loso motioned to approve the agenda; seconded by Kluesner and passed
unanimously.
Consent Agenda: Loso made a motion to approve the consent agenda; seconded by Kluesner and
passed unanimously.
Consent Agenda:
a. Minutes – Requested Action: Approve the minutes of May 15, 2023.
b. Bills Payable – Requested Action: Approve Check Numbers 60516-60597, Account Payable
& Payroll EFT # 3044-3059; Regular Pay Period 10 and 11.
c. 2023-2024 Liquor Licenses – Requested Action: Approve the 2023-2024 Intoxicating Liquor
Licenses as presented.
d. 2022 Transfers – Requested Action: Approve the 2022 transfers as presented.
e. State Bonding Requests – Requested Action: Approve Resolution 2023-026 supporting
applications for state bonding requests for the Community Center Project and County Road 2
Sewer Extension Project.
f. 2022 Equity Classifications – Requested Action: Approve the equity designations as
presented.
St. Joseph Fire Relief Update: St. Joseph Fire Fighter Keith Louwagie presented an update on the St.
Joseph Fire Relief fund. As part of the update, the Relief Association is requesting that an increase to the
benefit level be considered from the current $3200 to $3400 and that the increase take effect January 1st,
2024.
Schultz asked how much the City donates to the relief fund. Finance Director Bartlett shared the City is
not required to contribute funds; however, the City and the townships have agreed to a minimum of $3000
annually for municipal contribution. Discussion between the Council and Louwagie continued regarding
what the relief fund is used for, who manages the relief fund and how the statements are reviewed.
Kluesner motioned to approve the request to increase the annual contribution from the current
$3200 per year of service per firefighter to $3400 per year of service per firefighter effective
January 1, 2024; seconded by Loso and passed unanimously.
Consideration of approval of Pay Equity Study Amendment: City Administrator David Murphy presented
the Pay Equity Study Amendment with David Drown & Associates (DDA). The previously completed pay
grid calibration used different criteria and is not compatible with current needs. The proposal up for
adoption will allow DDA to prepare a more accurate pay grid calibration which will give the City a precise
prediction of payroll costs for 2024.
Loso motioned to Approve Amendment to 2023 Pay Equity Study with David Drown & Associates;
seconded by Kluesner and passed unanimously.
June 5th, 2023
Page 2 of 2
Northern Natural Gas Agreement: City Administrator David Murphy shared with the Council that staff has
been working with Northern Natural Gas (NNG) for the past several months to develop an easement to
allow for expansion of the Town Border Station located at the intersection of College Avenue and Field
Street as well as an agreement to access the service road at the site. Currently, the property surrounding
their station is owned by the City. The City Attorney has reviewed, modified, and approved both
agreements. Norther Natural Gas has reviewed the City Attorney’s changes and agreed to them. Council
is asked to consider approving the access road agreement and the Pipeline Facility Easement.
Schultz made a motion to approve the Access Road Agreement and Pipeline Facility Easement
between the City of St. Joseph and Northern Natural Gas; seconded by Loso and passed
unanimously.
Engineer Reports: City Engineer Randy Sabart presented to the Council two resolutions related to the
2023 Street Improvement Project. The first resolution schedules the special assessment hearing. The
second resolution is to declare the cost of the assessment. The total estimated cost of the project is
$3,295,800. The portion of the cost to be paid by the City is declared to be $2,409,449; the portion of the
cost for benefiting properties is declared to be $886,351. The proposed interest rate on assessments is
5%.
Kluesner motioned to approve Resolution 2023-027 declaring costs to be assessed and ordering
preparation of proposed assessment and Resolution 2023-028 calling for hearing on proposed
assessment for 2023 Street Improvements; seconded by Loso and passed unanimously.
Administrator Reports: City Administrator David Murphy shared the July 12th, 2023 teambuilding session
for Council and Staff has been confirmed and will be held at CSB.
Mayor and Council Reports/Updates: Mayor Schultz shared the City was able to get legislative action
done on the Local Options Sales Tax; however, did not receive any bonding this session. Schultz would
like to discuss the possibility of working with DeLaforest consulting to lobby for the sewer main line
extension in the future after it is confirmed whether legislators will bond in 2024.
Kluesner asked staff for a status update regarding the applications submitted by the City for federal
monies to Tina Smith, Tom Emmer and Amy Klobuchar’s offices for the YMCA and sewer main line
projects. Sabart responded the City received acknowledgement of submittal; however, have not received
whether further consideration has been given to those applications.
Adjourn: Loso made a motion to adjourn at 6:44PM; seconded by Kluesner and passed
unanimously.
Kayla Klein
City Clerk
STAFF MEMO
Prepared by:
Debbie Kulzer
Meeting Date:
6/27/23
☒ Consent Agenda Item
☐ Regular Agenda Item
Agenda Item #
4b
Reviewed by:
Item:
Bills Payables
ACTION REQUESTED
Approve the bills payables as presented.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
none
PREVIOUS COUNCIL ACTION
See below
REFERENCE AND BACKGROUND
The council approved staff to make the following payments through the payroll contracts, regular
monthly invoices with due dates prior to the next scheduled council meeting, or actions taken at
previous council meetings. The information here is to provide you all checks and electronic
payments made for verification of the disbursement completeness.
BUDGET IMPACT
Bills Payable – Checks Mailed Prior to Council Approval
Regular PP 12 $63,658.77
Payroll & Accounts Payable EFT #3060 - #3078 $119,892.33
Check Numbers #60598 - #60680 $833,336.31
__________________________________________________
Total $1,016,887.41
Bills Payable – Checks Awaiting Council Approval
Check Numbers #- #60681 - #60683 $9,728.27
Total $9,728.27
Total Budget/Fiscal Impact: $1,026,615.68 Various Funds
STAFF RECOMMENDED ACTION
Approve the bills payables as presented.
SUPPORTING DATA/ATTACHMENTS
Bill listing by EFT, paid prior to council approval and awaiting to be paid upon council approval.
GL Check Check Vendor Invoice Invoice Check
Period Issue Date Number Number Payee Number GL Account Amount
23-Jun 6/14/2023 ACH PAYROLL REG PP 12 VARIOUS $63,658.77
23-Jun 6/2/2023 3060 106468 AMERICAN FUNDS PR0526231 101-21705 $150.00
23-Jun 6/2/2023 3061 1224 EFTPS PR0526231 101-21703 $17,757.10
23-Jun 6/2/2023 3062 897 MN DEPARTMENT OF REVENUE PR0526231 101-21702 $3,889.91
23-Jun 6/2/2023 3063 63 PERA PR0526231 101-21704 $16,841.73
23-Jun 6/2/2023 3064 105209 SENTRY BANK PR0526231 101-21715 $2,271.91
23-Jun 6/2/2023 3065 106189 VOYA FINANCIAL PR0526231 101-21705 $2,550.00
23-Jun 6/6/2023 3066 63 PERA PP 9 - OT - 1 101-21704 $1,359.85
23-Jun 6/6/2023 3066 63 PERA PP 9 - OT- 1 101-21704 $143.89
23-Jun 6/6/2023 3066 63 PERA PRO428231 101-21704 $18,381.16
23-Jun 6/5/2023 3067 104139 SENTRY BANK-CREDIT CARD MAY 2023 STMT - 1 101-41430-36300 $1,165.79
23-Jun 6/5/2023 3067 104139 SENTRY BANK-CREDIT CARD May 23 STMT - Kayla 101-41430-300 $183.41
23-Jun 6/5/2023 3067 104139 SENTRY BANK-CREDIT CARD May 23 STMT - Nate 101-41910-300 $1.00
23-Jun 6/5/2023 3067 104139 SENTRY BANK-CREDIT CARD May 23 STMT - Rhonda 101-45204-308 $2,321.86
23-Jun 6/5/2023 3067 104139 SENTRY BANK-CREDIT CARD May 23 STMT PD 101-42140-331 $1,633.93
23-Jun 6/2/2023 3068 106563 PAYMENT SERVICE NETWORK 45047 101-41530-300 $196.20
23-Jun 6/2/2023 3069 106705 SPEEDWAY May 23 STMT 602-49450-205 $2,312.36
23-Jun 6/2/2023 3070 108126 WEX 0001732190-IN 101-41430-300 $3.75
23-Jun 6/15/2023 3071 106468 AMERICAN FUNDS PR0609231 101-21705 $150.00
23-Jun 6/15/2023 3072 106514 DELTA DENTAL CNS0001257447 101-21706 $2,970.01
23-Jun 6/15/2023 3073 1224 EFTPS PR0609231 101-21703 $17,866.46
23-Jun 6/15/2023 3074 897 MN DEPARTMENT OF REVENUE PR0609231 101-21702 $3,831.84
23-Jun 6/15/2023 3075 63 PERA PR0609231 101-21704 $18,882.11
23-Jun 6/15/2023 3076 105209 SENTRY BANK PR0609231 101-21715 $2,271.91
23-Jun 6/15/2023 3077 106543 THE HARTFORD 3.95922E+11 101-21711 $206.15
23-Jun 6/15/2023 3078 106189 VOYA FINANCIAL PR0609231 101-21705 $2,550.00
23-Jun 6/1/2023 60598 24-Mar CENTRACARE May 23 STMT 601-49440-300 $60.00
23-Jun 6/1/2023 60599 20-Apr GILLELAND CHEVROLET CADILLAC 15-May 602-49450-230 $110.36
23-Jun 6/1/2023 60599 20-Apr GILLELAND CHEVROLET CADILLAC 1041469-1 101-43120-230 $8.69
23-Jun 6/1/2023 60599 20-Apr GILLELAND CHEVROLET CADILLAC 1041469-2 602-49450-230 $26.07
23-Jun 6/1/2023 60600 12-Jun GOODIN COMPANY 05350977-00 101-45202-210 $122.26
23-Jun 6/1/2023 60601 25-Apr HACH COMPANY 13573855 601-49421-210 $289.62
23-Jun 6/1/2023 60602 5-Feb HAWKINS, INC 6476365 601-49420-210 $1,402.24
23-Jun 6/1/2023 60603 9-May MELROSE 1 STOP 30-May 101-43125-230 $50.77
23-Jun 6/1/2023 60604 9-Feb METERING & TECHNOLOGY SOLUINV2469 601-49430-210 $219.44
23-Jun 6/1/2023 60605 25-May MIDWAY IRON AND METAL, INC 28-Apr 602-49450-230 $22.73
23-Jun 6/1/2023 60606 11-Dec MIDWEST MACHINERY CO.9591832 101-45202-230 $297.15
23-Jun 6/1/2023 60606 11-Dec MIDWEST MACHINERY CO.9603282 101-45202-230 $11.08
23-Jun 6/1/2023 60607 20-Nov MOMENTUM TRUCK GROUP X194154124:01 602-49450-230 $115.85
23-Jun 6/1/2023 60608 3-Jun MVTL LABORATORIES, INC 8-May 602-49480-312 $512.60
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO16A - 9 301-47100-611 $37,321.25
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO16B - 8 304-47100-611 $5,512.50
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO17B -7 305-47100-611 $2,550.00
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO18A - 6 306-47100-611 $700.00
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO19A - 5 307-47100-611 $60,850.00
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO20B - 3 310-47100-611 $18,460.00
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO21A - 4 601-47100-611 $82,400.00
23-Jun 6/1/2023 60609 9-Feb NORTHLAND TRUST SERVICES IN STJO22A 316-47100-620 $234,986.67
23-Jun 6/1/2023 60610 21-Apr O REILLY AUTO PARTS 5771-294417 101-43201-210 $73.44
23-Jun 6/1/2023 60610 21-Apr O REILLY AUTO PARTS 5771-295103 101-43220-230 $34.76
23-Jun 6/1/2023 60610 21-Apr O REILLY AUTO PARTS 5771-295299 101-43201-210 $22.98
23-Jun 6/1/2023 60610 21-Apr O REILLY AUTO PARTS 5771-295935 101-45202-230 $23.67
23-Jun 6/1/2023 60611 18-Apr Pete Schleper 05.13.23 205-45202-531 $2,500.00
23-Jun 6/1/2023 60612 12-Nov RIDGEWOOD CONTRACTING, LLC 15-Jul 101-43120-220 $213.30
23-Jun 6/1/2023 60613 27-Feb SHIFT TECHNOLOGIES, INC.1-Feb 601-49421-300 $91.00
23-Jun 6/1/2023 60614 25-Feb SUNSET MFG CO., INC.3-Jun 101-43120-220 $1,140.00
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 27-Jan 101-45202-220 $223.30
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 28-Jan 101-45202-220 $223.30
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 29-Jan 101-45202-220 $223.30
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 30-Jan 101-45202-220 $223.30
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 31-Jan 101-45202-220 $223.30
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 1-Feb 101-45202-220 $223.30
23-Jun 6/1/2023 60615 25-Feb SYLVA CORPORATION INC 4-Feb 101-45202-220 $223.30
23-Jun 6/1/2023 60616 19-Apr TIREMAXX SERVICE CENTERS 19-Apr 101-45202-230 $76.00
23-Jun 6/1/2023 60617 2-Nov TRAUT COMPANIES 10-Oct 601-49420-312 $35.00
23-Jun 6/1/2023 60618 27-Dec ZARNOTH BRUSH WORKS INC 0193810-IN 101-43220-230 $6,195.00
23-Jun 6/8/2023 60619 5-Mar 360 RENTS 22-May 651-49900-410 $145.00
23-Jun 6/8/2023 60620 22-May AFSCME COUNCIL 65 4-Jan 101-21707 $793.00
23-Jun 6/8/2023 60621 24-Apr ALL PRO POWDER COATING, INC 11-Feb 101-43120-220 $120.00
23-Jun 6/8/2023 60622 1-Jun AXON ENTERPPRISE, INC.INUS161812 104-42120-580 $17,322.00
23-Jun 6/8/2023 60623 26-Jul BRUNO PRESS 4-Jan 220-46500-300 $750.00
23-Jun 6/8/2023 60624 24-May CENTRAL HYDRAULICS, INC 18-May 602-49450-230 $105.98
23-Jun 6/8/2023 60625 8-Jun CITY OF ST. CLOUD AR028439 602-49480-602 $67,162.97
23-Jun 6/8/2023 60625 8-Jun CITY OF ST. CLOUD AR028555 101-42120-304 $21,650.00
23-Jun 6/8/2023 60626 5-Sep CIVIC SYSTEMS, LLC CVC23262 104-41530-582 $1,070.74
23-Jun 6/8/2023 60627 21-Apr DESIGN ELECTRIC, INC 8-Aug 652-43160-220 $153.95
23-Jun 6/8/2023 60627 21-Apr DESIGN ELECTRIC, INC 9-Aug 101-43201-220 $1,557.98
23-Jun 6/8/2023 60628 10-Aug DTM FLEET SERVICE 28-Jun 109-42152-580 $4,407.09
23-Jun 6/8/2023 60629 7-Dec FARM-RITE EQUIPMENT, INC.P73221 101-43120-230 $42.48
23-Jun 6/8/2023 60630 7-Dec FASTENAL COMPANY MNST1193018 101-43201-210 $7.60
23-Jun 6/8/2023 60631 14-Aug GALLS, INC 24618681 101-42120-171 $1,224.07
23-Jun 6/8/2023 60632 16-Mar GRANITE ELECTRONICS, INC 154014395-1 101-42120-220 $81.00
23-Jun 6/8/2023 60633 5-Feb HAWKINS, INC 6482064 601-49420-210 $756.19
23-Jun 6/8/2023 60633 5-Feb HAWKINS, INC 6482065 601-49421-210 $2,978.58
23-Jun 6/8/2023 60634 16-Feb KINETIC 5-Mar 110-45205-300 $17,500.00
23-Jun 6/8/2023 60635 15-May KWIK TRIP Partial Refund 4/4/23 101-41430-34780 $50.00
23-Jun 6/8/2023 60636 18-Feb LAW ENFORCEMENT LABOR SERV 4-Jan 101-21707 $742.50
23-Jun 6/8/2023 60637 15-Jan LEAGUE OF MN CITIES 21-Jul 101-41430-331 $475.00
23-Jun 6/8/2023 60638 1-Jan LEES ACE HARDWARE May 23 STMT 101-42120-210 $15.18
23-Jun 6/8/2023 60639 22-Apr LUMBER ONE DEVELOPMENT CO Refund 101-41430-34103 $100.00
23-Jun 6/8/2023 60640 30-May MACQUEEN EMERGENCY, INC P43672 101-43220-230 $1,468.80
23-Jun 6/8/2023 60640 30-May MACQUEEN EMERGENCY, INC P49361 101-43220-230 $797.28
23-Jun 6/8/2023 60640 30-May MACQUEEN EMERGENCY, INC P49990 101-43220-230 $73.11
23-Jun 6/8/2023 60640 30-May MACQUEEN EMERGENCY, INC P50027 101-43220-230 $73.11
23-Jun 6/8/2023 60641 15-Aug MARTIN MARIETTA MATERIALS, 38793137 101-43120-220 $362.06
23-Jun 6/8/2023 60642 9-May MELROSE 1 STOP 30-May 101-43125-230 $50.77
23-Jun 6/8/2023 60643 9-Feb METERING & TECHNOLOGY SOLUINV2565 601-49430-210 $220.39
23-Jun 6/8/2023 60644 25-May MIDWAY IRON AND METAL, INC 11-Oct 101-45202-230 $29.13
23-Jun 6/8/2023 60645 21-Dec MIKES ELECTRIC 12-Feb 601-49410-220 $800.00
23-Jun 6/8/2023 60646 13-Dec MN DEPARTMENT OF HEALTH 04/01/23 - 06/30/23 601-49440-444 $4,495.00
23-Jun 6/8/2023 60647 24-Sep NORTHLAND BUSINESS SOLUTIO IN106352 101-42120-300 $2,265.47
23-Jun 6/8/2023 60648 21-Apr O REILLY AUTO PARTS 5771-296395 101-43120-230 $84.20
23-Jun 6/8/2023 60648 21-Apr O REILLY AUTO PARTS 5771-297005 602-49450-230 $16.99
23-Jun 6/8/2023 60648 21-Apr O REILLY AUTO PARTS 5771-297216 602-49450-230 $40.98
23-Jun 6/8/2023 60648 21-Apr O REILLY AUTO PARTS 5771-297865 101-43125-230 $37.49
23-Jun 6/8/2023 60649 6-Jun OPG-3, INC.11-May 101-41430-310 $148.00
23-Jun 6/8/2023 60650 20-Apr POWERHOUSE OUTDOOR EQUIP 7-Jul 101-45202-230 $132.66
23-Jun 6/8/2023 60650 20-Apr POWERHOUSE OUTDOOR EQUIP 29-Sep 601-49440-230 $42.79
23-Jun 6/8/2023 60650 20-Apr POWERHOUSE OUTDOOR EQUIP 17-Aug 602-49450-230 $8.49
23-Jun 6/8/2023 60651 13-Jan REPUBLIC SERVICES 0891-001274319 603-43230-384 $28,627.01
23-Jun 6/8/2023 60652 12-Nov RIDGEWOOD CONTRACTING, LLCMarch - May 2023 603-43230-300 $19,760.00
23-Jun 6/8/2023 60653 23-Apr SCHMITZ, DAN Refund 06/01/23 001-10105 $115.55
23-Jun 6/8/2023 60654 27-Feb SHIFT TECHNOLOGIES, INC.19-Mar 101-41710-310 $312.50
23-Jun 6/8/2023 60654 27-Feb SHIFT TECHNOLOGIES, INC.5-Apr 101-41710-310 $241.50
23-Jun 6/8/2023 60655 24-Jul STEARNS COUNTY RECORDER 2.023E+11 101-41910-340 $46.00
23-Jun 6/8/2023 60656 25-Jan STERICYCLE, INC.8004025907 101-41430-300 $73.95
23-Jun 6/8/2023 60657 2-Nov TRAUT COMPANIES 23-Jun 601-49420-312 $280.00
23-Jun 6/8/2023 60658 14-Jan WHEELCO INV361995 602-49450-230 $148.22
23-Jun 6/8/2023 60659 12-Dec WRUCK SEWER & PORTABLE RENI15960 101-45202-300 $179.00
23-Jun 6/8/2023 60660 17-Jun ZEP MANUFACTURING, INC 9008598347 602-49450-210 $396.34
23-Jun 6/9/2023 60661 17-Feb SEH, INC 1-Sep 411-43120-530 $1,165.00
23-Jun 6/9/2023 60661 17-Feb SEH, INC 12-Sep 415-43120-530 $762.75
23-Jun 6/9/2023 60661 17-Feb SEH, INC 25-Sep 101-43131-303 $8,815.41
23-Jun 6/9/2023 60661 17-Feb SEH, INC 14-Oct 417-43120-530 $19,960.00
23-Jun 6/9/2023 60661 17-Feb SEH, INC 19-Oct 417-43120-530 $8,093.25
23-Jun 6/9/2023 60661 17-Feb SEH, INC 19-Aug 415-43120-530 $3,439.70
23-Jun 6/9/2023 60661 17-Feb SEH, INC 5-Sep 101-43131-303 -$205.00
23-Jun 6/9/2023 60661 17-Feb SEH, INC 19-Sep 417-43120-530 $2,398.00
23-Jun 6/9/2023 60661 17-Feb SEH, INC 15-Dec 101-43131-303 $6,538.40
23-Jun 6/9/2023 60661 17-Feb SEH, INC 17-Jul 417-43120-530 $4,990.00
23-Jun 6/9/2023 60661 17-Feb SEH, INC 28-May 601-49434-303 $16,680.30
23-Jun 6/15/2023 60662 21-Apr ALEX AIR APPARATUS 2, LLC 7-Dec 210-42220-300 $832.39
23-Jun 6/15/2023 60663 15-Apr CENTRAL MCGOWAN, INC 27-Apr 101-42120-210 $29.25
23-Jun 6/15/2023 60663 15-Apr CENTRAL MCGOWAN, INC 0000715994 - B 210-42270-210 $29.26
23-Jun 6/15/2023 60664 18-Jun CINTAS CORPORATION NO. 2 May 23 STMT 101-41430-210 $739.45
23-Jun 6/15/2023 60665 25-Jan CLEARGOV INC.2023-13176 101-41530-310 $7,210.00
23-Jun 6/15/2023 60666 8-Mar COLD SPRING CO-OP May 23 STMT 101-45202-210 $710.00
23-Jun 6/15/2023 60667 21-Apr DESIGN ELECTRIC, INC 2-Aug 210-42280-300 $337.84
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 21-Oct 210-42260-230 $416.00
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 22-Oct 210-42260-230 $1,307.49
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 23-Oct 210-42260-230 $219.22
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 24-Oct 210-42260-230 $468.40
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 25-Oct 210-42260-230 $1,372.15
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 27-Oct 210-42260-230 $587.51
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 28-Oct 210-42260-230 $1,340.10
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 16-Apr 210-42260-230 $343.85
23-Jun 6/15/2023 60668 12-Jan EMERGENCY APPARATUS MAINT 1-Aug 210-42260-230 $749.65
23-Jun 6/15/2023 60669 14-Nov EO JOHNSON BUSINESS TECH INV1349895 101-41710-310 $401.00
23-Jun 6/15/2023 60670 5-Aug FIRE EQUIPMENT SPECIALTIES IN 4-Sep 416-42220-585 $2,406.94
23-Jun 6/15/2023 60671 5-Oct FIRSTNET 2.87295E+11 101-42151-321 $542.06
23-Jun 6/15/2023 60672 6-May JOVANOVICH, DEGE & ATHMANN 28-Dec 417-43120-530 $450.00
23-Jun 6/15/2023 60673 30-May MACQUEEN EMERGENCY, INC P15546 416-42220-585 $16,937.70
23-Jun 6/15/2023 60673 30-May MACQUEEN EMERGENCY, INC P15607 416-42220-585 $1,365.90
23-Jun 6/15/2023 60674 27-Feb MELROSE IMPLEMENT, INC 5-Jan 418-45202-580 $39,040.00
23-Jun 6/15/2023 60675 13-Aug MIDCONTINENT COMMUNICATIO 1.64557E+13 602-49480-321 $2,678.90
23-Jun 6/15/2023 60676 11-Jan STEARNS ELECTRIC ASSOCIATIONMay 23 STMT 602-49471-381 $2,604.11
23-Jun 6/15/2023 60677 12-May SWORSKI, MICHAEL 05.03.23 602-49450-171 $200.00
23-Jun 6/15/2023 60678 20-Nov VERIZON WIRELESS 9935617266 651-49900-580 $4,925.69
23-Jun 6/15/2023 60679 27-Feb XCEL ENERGY 830247500 652-43160-386 $13,037.53
23-Jun 6/15/2023 60680 5-Oct FIRSTNET 2.87296E+11 210-42250-321 $880.48
23-Jun 6/22/2023 60681 84 CENTRACARE Visit# 718325057 602-49450-300 $60.00
23-Jun 6/22/2023 60682 103063 INSPECTRON INC 2023-590 101-42401-300 $8,500.00
23-Jun 6/22/2023 60683 6 ST. CLOUD TIMES 5633879 417-43120-530 $1,168.27
Payroll
$63,658.77
Accounts Payable & Payroll EFT
$119,892.33
Check #'s
$833,336.31
Council Approval Checks
$9,728.27
STAFF MEMO
Prepared by:
Lori Bartlett, Finance
Meeting Date:
6-27-23
☒Consent Agenda Item
☐Regular Agenda Item
Agenda Item #
Reviewed by: Item:
Donations and Contributions
ACTION REQUESTED
Approve Resolution 2023-034 accepting donations as presented.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
none
PREVIOUS COUNCIL ACTION
none
REFERENCE AND BACKGROUND
Minnesota Statute 465.03 requires that all gifts and donations of real or personal property be accepted
only with the adoption of a resolution approved by two-thirds of the members of the City Council. By
accepting the donations, the city is accepting the intent of the donations. The in-kind donations are
estimates.
Total Dog Park cash donations received through 5/31/23 = $7,055 + $1,149 for pavers and refreshments.
Total Community Center/YMCA donations received through 5/31/23 = $13,041.
BUDGET IMPACT
$134.26
STAFF RECOMMENDED ACTION
Accept the donations as presented in Resolution 2023-034.
SUPPORTING DATA/ATTACHMENTS
Resolution 2023-034 Accepting Donations
4c
RESOLUTION 2023-035
RESOLUTION ACCEPTED DONATION(S)
WHEREAS, The City of St. Joseph is generally authorized to accepts gifts and bequests pursuant to
Minnesota Statutes Section 465.03 and Minnesota Statutes Section 471.17 for the benefit of its citizens;
and
WHEREAS, said Minnesota Statute 465.03 requires that all gifts and donations of real or personal
property be accepted only with the adoption of a resolution approved by two-thirds of the members of the
City Council; and
WHEREAS, the following person/persons and/or entity/entities has/have donated real and/or personal
property as follows:
DONOR METHOD PURPOSE AMOUNT
Anonymous Cash Disc Golf $16.00
Anonymous Cash RV Dump $87.00
Anonymous Cash Archery Range $9.26
Anonymous Cash Dog Park $22.00
WHEREAS, all such donations have been contributed to assist the various city departments and
programs as allowed by law; and
WHEREAS, the City Council finds that it is appropriate to accept the donations offered.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH,
MINNESOTA, AS FOLLOWS:
1. The donations described above are accepted.
2. The Finance Department is hereby directed to issue receipts to each donor acknowledging the
city’s receipt of the donors’ donations.
ADOPTED by the City Council this 27h day of June, 2023.
CITY OF ST. JOSEPH
Rick Schultz, Mayor
ATTEST
David Murphy, City Administrator
STAFF MEMO
Prepared by:
Lori Bartlett, Finance Director
Meeting Date:
6-27-23
☒ Consent Agenda Item
☐ Regular Agenda Item
Agenda Item #
4d
Reviewed by:
Item:
Certificate of Approval of Special Legislation: Community Center
ACTION REQUESTED
Adopt Resolution 2023-034 Approving Special Legislation MN Laws.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
None
PREVIOUS COUNCIL ACTION
Council submitted a special legislation resolution to request authorization a local option half cent sales
tax to fund phase II of the community center and phases II/III of the East Park development. Council
hired DeLaforest to lobby for the legislation.
REFERENCE AND BACKGROUND
The Minnesota State Legislators adopted policies for communities to request local option sales taxes.
The following steps were imposed ty the State for cities to request new local sales taxing authority.
1. Adopt resolution proposing the tax. Projects must me regionally significant and a single building or
park.
2. Submit resolution and supporting materials to state tax committees.
3. Get Legislative authority.
4. Once written in law, cities must adopt a resolution accepting the new law.
5. Once authored in State Laws and accepted by the city, a referendum of the voters must be held.
The referendum must be held during a general election within two years of receiving legislative
authority for the local sales tax.
6. If successful vote, the city will need to pass an ordinance imposing the tax.
In the 2023 MN Legislative Session, Legislators enacted a law to allow the City of St. Joseph to ask for
up to $18M in half cent sales tax for phase II of the community center and phase II/III of the East Park
development. The 2023 regular session law is Chapter 64, Article 10, Section 46. Also, during the
session, Legislators placed a moratorium on future local option sales tax requests for 2024 and 2025
until a committee can recommend a new process to allow new legislation.
Staff engaged Taft Law Firm to review the law language to ensure future bonding is clear if St. Joseph is
successful in implementing the local sales tax. The wording is very important to have clear and correct
to avoid legal bonding requirements later on. Taft law prepared the resolution for council to accept
the new law and the attached certificate to submit to the Secretary of State. The referendum is
planned for the next general election in Nov. 2024.
BUDGET IMPACT
Up to $18,000,000 in new local option sales taxes.
STAFF RECOMMENDED ACTION
Adopt Resolution 2023-029 Approving Special Legislation MN Laws and submit the Certificate
of Special Law by Governing Body to the Minnesota Secretary of State.
SUPPORTING DATA/ATTACHMENTS
Resolution 2023-029 Approving Special Legislation MN Laws
Certificate of Special Law by Governing Body to the Minnesota Secretary of State
127556486v1
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY
OF ST. JOSEPH, MINNESOTA
HELD: June 27, 2023
Pursuant to due call and notice thereof, a regular or special meeting of the City Council of
the City of St. Joseph, Stearns County, Minnesota, was duly called and held at City Hall in said
City, on June 27, 2023, beginning at 6 p.m.
The following members of the Council were present:
and the following were absent:
Member __________ introduced the following resolution and moved its adoption:
RESOLUTION 2023-029
RESOLUTION OF THE CITY OF ST. JOSEPH, MINNESOTA
APPROVING MINNESOTA LAWS, 2023
REGULAR SESSION
CHAPTER 64, ARTICLE 10, SECTION 46
A. WHEREAS, the 2023 regular session of the Minnesota Legislature passed, and
the Governor signed, Minnesota Session Laws, 2023, Regular Session, Chapter 64, Article 10,
Section 46, which states as follows:
Sec. 46. CITY OF ST. JOSEPH; TAXES AUTHORIZED.
Subdivision 1. Sales and use tax authorization.
Notwithstanding Minnesota Statutes, section 477A.016, or any other
law, ordinance, or city charter, and if approved by the voters at an
election as required under Minnesota Statutes, section 297A.99,
subdivision 3, the city of St. Joseph may impose by ordinance a sales
and use tax of one-half of one percent for the purposes specified in
subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax
authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax imposed under
any other special law.
Subd. 2. Use of sales and use tax revenues. The revenues
derived from the tax authorized under subdivision 1 must be used by the
city of St. Joseph to pay the costs of collecting and administering the tax
and paying for the following projects in the city, including securing and
127556486v1
paying debt service on bonds issued to finance all or part of the
following projects:
(1) $11,000,000 for construction of Phase II of the St. Joseph
community center expansion; and
(2) $6,000,000 for Phases II and III of the improvements to East
Park along the Sauk River in the city of St. Joseph.
Subd. 3. Bonding authority. (a) The city of St. Joseph may issue
bonds under Minnesota Statutes, chapter 475, to finance all or a portion
of the costs of the projects authorized in subdivision 2 and approved by
the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
(1) $11,000,000 for the project listed in subdivision 2, clause
(1), plus an amount to be applied to the payment of the costs of issuing
the bonds; and
(2) $6,000,000 for the project listed in subdivision 2, clause (2),
plus an amount to be applied to the payment of the costs of issuing the
bonds.
(b) The bonds may be paid from or secured by any funds
available to the city of St. Joseph, including the tax authorized under
subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
(c) The bonds are not included in computing any debt limitation
applicable to the city of St. Joseph, and any levy of taxes under
Minnesota Statutes, section 475.61, to pay principal and interest on the
bonds is not subject to any levy limitation. A separate election to
approve the bonds under Minnesota Statutes, section 475.58, is not
required.
Subd. 4. Termination of taxes. Subject to Minnesota Statutes,
section 297A.99, subdivision 12, the tax imposed under subdivision 1
expires at the earlier of (1) 17 years after the tax is first imposed, or (2)
when the city council determines that the amount received from the tax
is sufficient to pay for the project costs authorized under subdivision 2
for projects approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient
to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3,
127556486v1
paragraph (f), any funds remaining after payment of the allowed costs
due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, shall be placed in the general fund of
the city. The tax imposed under subdivision 1 may expire at an earlier
time if the city so determines by ordinance.
EFFECTIVE DATE. This section is effective the day after the
governing body of the city of St. Joseph and its chief clerical officer
comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
B. WHEREAS, such legislation requires local approval in accordance with Minnesota
Statute, Section 645.021; and
C. WHEREAS, the City desires the law to become effective;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of St. Joseph,
Minnesota, as follows:
1. Minnesota Session Laws, 2023, Regular Session, Chapter 64, Article 10, Section
46, is hereby approved.
2. The City Administrator is hereby instructed to submit the appropriate certificate
and a copy of this Resolution to the Secretary of State of the State of Minnesota.
Adopted on June 27, 2023, by the City Council of the City of St. Joseph, Minnesota.
_______________________________________
Mayor
ATTEST:
______________________________________
City Administrator
The motion for the adoption of the foregoing resolution was duly seconded by Member
________________, and after full discussion thereof and upon vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
127556486v1
STATE OF MINNESOTA
COUNTY OF STEARNS
CITY OF ST. JOSEPH
I, the undersigned, being the duly qualified and acting City Administrator of the City of St.
Joseph, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing
extract of minutes with the original thereof on file in my office, and that the same is a full, true
and complete transcript of the minutes of a meeting of the City Council of said City, duly called
and held on the date therein indicated, insofar as such minutes relate to the preliminary approval
of the financing structure for the community center.
WITNESS my hand on ____________, 2023.
_______________________________________
City Administrator
CERTIFICATE OF APPROVAL OF SPECIAL LAW
BY GOVERNING BODY
(Pursuant to Minnesota Statutes, 645.02 and 645.021)
PLEASE TAKE NOTICE, That the undersigned chief clerical officer of the
(designate governing body)
(if other than resolution, specify)
by a __________ majority vote* of all of the members thereof (Ayes_______; Noes ________;
Absent or not voting __________) and the following additional steps, if any required by statute
or charter were taken:
______________________________________________________________________________
A copy of the resolution is hereto annexed and made a part of this certificate by reference.
Signed: _____________________________
____________________________
(Official designation of officer)
(This form prescribed by the Attorney General and furnished by the Secretary of State as required in Minnesota Statutes 645.021.)
*If extraordinary majority is required by the special law, insert fraction o centage here. r per Please see reverse side for instructions for completing this form. S:\ELECT\ELECT\OPENAPPT\CERTIFICATE OF APPROVAL OF SPECIAL LAW.doc
STATE OF MINNESOTA
County of __________________
TO THE SECRETARY OF STATE OF MINNESOTA:
_____________________________________________________________________________
DOES HEREBY CERTIFY, that in compliance with the provisions of Laws, 20_____, 22
Chapter _________ requiring approval by a m645.021 ajority* of the governing body of said local
governmental unit before it becomes effective, the _________________________________
at a meeting duly held on the ____ day of _____________ 20_____, by resolution __________
__________________________________ did approve said Laws, 20_____, Chapter ________
Stearns
City of St. Joseph, Minnesota
23 64, Article 10, Section 46
INSTRUCTIONS
• Include the chapter number in the Laws of Minnesota that is to be approved on
the Certificate of Approval form and in the resolution that approves the special
law.
• Return the completed originally signed Certificate of Approval form with a
photo copy of the resolution that approved the special law to:
Election Division
Secretary of State
180 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd
St Paul, MN 55155-1299
• If you have any questions please contact Nancy Breems at 651/215-1440.
STAFF MEMO
Prepared by:
Community Development
Meeting Date:
June 27th, 2023 ☐ Consent Agenda Item ☒ Regular Agenda Item
Agenda Item #
4e
Reviewed by:
Item:
Vacating interior easements between Lots 22 and 23 of Block 3
Northland Heights
ACTION REQUESTED
Approval of resolution 2023-030
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Planning Commission held a public hearing and voted unanimously to approve the proposed
vacation.
Staff did receive a couple written comments which are included.
One resident spoke at the Public Hearing but did not have any objections (clarification questions).
PREVIOUS COUNCIL ACTION None
REFERENCE AND BACKGROUND
Applicant Information: Lumber One Development Company, LLC
Existing Zoning: R-1 Single Family Residential (PUD)
Future Land Use: Low density Residential
Location: 1323 & 1327 Jasmine Lane
Civil: City Engineer has reviewed the request and stated that
there does not appear to be a conflict with any of the
public utilities between the two lots. Drainage shall be
properly routed around the house via the rear yard and
remaining side yard easements. From a City of St.
Joseph public utility perspective, the City Engineer
supports the vacation request.
Access: Access will be provided off Jasmine Lane
WCA/Wetlands: N/A
Vacation of Easements Request:
The applicant is proposing to vacate the interior easements previously dedicated within the original
plat of the Northland Heights Subdivision. The request is being pursued because the applicant has
the intent to combine the two subject lots into one lot and build a home over the easement line. The
interior easements need to be vacated as structures are not permitted over easements. Both easements
are standard 5’ interior easements.
Remaining easements around the perimeter of the lots will remain. The request only impacts the
easements between the two lots (interior).
The applicant will also be combining the two lots through the Administrative Subdivision application
(no Council action required on this application).
BUDGET IMPACT None
STAFF RECOMMENDED ACTION Approval of resolution 2023-030
SUPPORTING DATA/ATTACHMENTS
1. Vacation application
2. Resolution 2023-030
3. Public comments
REQUESTED COUNCIL ACTION:
1. Motion on resolution 2023-030
RESOLUTION 2023-030
RESOLUTION VACATING EASEMENTS AS LEGALLY DESCRIBED FOR LOTS 003,
004, OF BLOCK 003 AND OUTLOT E OF NORTHLAND BUSINESS CENTER
WHEREAS, the Planning Commission of the City of St. Joseph held a public hearing on February
13th, 2023 following a publication, mailed and posted notice for the purpose of hearing those
present to consider the vacation of drainage and utility easements; and
WHEREAS, the easements to be vacated are legally described as:
Southern interior drainage and utility easement over, under and across Outlot E, and lot 004, block
003 of Northland Business Center; western interior drainage and utility easement over, under and
across Outlot E, Eastern and Northern drainage and utility easement over, under and across lot
004, block 003 of Northland Business Center, and the Eastern and Southern drainage and utility
easement over, under, and across Lot 003, block 003 of Northland Business Center plat; and
WHEREAS, it appeared in the best interests of the public and the City of St. Joseph that such a
vacation of easements be vacated and discontinued; and
WHEREAS, new easements will be dedicated as part of the plat for Northland Business Center
3rd Addition which is a re-plat of Lot 001, Block 001 of Northland Business Center 2nd Addition
plat and Lot 003 and 004, Block 003 and Outlot E of Northland Business Center plat
BE IT RESOLVED that the City Administrator and Mayor are hereby authorized to execute the
vacation of easements; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH,
MINNESOTA, duly assembled that the following described easements hereby vacated to
wit:
The Southern interior drainage and utility easement over, under and across Outlot E, and lot 004,
block 003 of Northland Business Center; western interior drainage and utility easement over,
under and across Outlot E, Eastern and Northern drainage and utility easement over, under and
across lot 004, block 003 of Northland Business Center, and the Eastern and Southern drainage
and utility easement over, under, and across Lot 003, block 003 of Northland Business Center
plat;
ADOPTED by the City Council this 27th day of June, 2023.
CITY OF ST. JOSEPH
By
Rick Schultz, Mayor
ATTEST
By
David Murphy, City Administrator
STAFF MEMO
Prepared by:
City Clerk
Meeting Date:
6-27-23
☐ Consent Agenda Item
☒ Regular Agenda Item
Agenda Item #
5
Reviewed by:
City Administrator
Item:
Public Hearing – 2023 Street Improvement Project Assessment
Hearing
ACTION/S REQUESTED
• Conduct public hearing on proposed assessments.
• Motion to approve Resolution 2023-031 Awarding Bid to Larson Excavating Contractors, Inc. for the
2023 Street Improvements.
• Motion to approve Resolution 2023-032 Adopting Final Assessments.
PREVIOUS COUNCIL ACTION Council requested a benefit analysis from Nagell Appraisals for the
proposed assessments on the 2023 Street Improvements, called for the assessment hearing, and authorized
advertising for bids on the project.
REFERENCE AND BACKGROUND The benefit analysis came back with the improved market values for
the proposed project. The attached revised assessment roll reflects the results of the report. The costs of
the project will be received after the assessment hearing. The revised assessment rolls are lower than the
preliminary roll that were don’t when the feasibility study was completed. Since the assessments are
capped at the appraised market value, staff recommends adoption of the assessments following the public
hearing.
City Engineers Randy Sabart and Bryce Johnson will be present to provide an overview of the assessment
costs and how they were calculated. Property owners who object to the assessment must do so in writing
before the close of the assessment hearing on June 27th. If a written objection is submitted, it is up to the
property owner to perfect the objection by filing an appeal with the district court within 30 days from the
date of adoption of the assessment roll. The appeal process is described under MN Statute 429.081.
All impacted property owners received notice of the proposed final assessment and terms of payment.
The proposed term is 10 years at 5% interest rate. The council sets the final terms with the adoption of
Resolution 2023-031. If the final assessment is adopted, staff will send notices out to property owners
that will state the terms of the assessment and payment options.
Bid opening for the project was held on June 8th and 6 bids were received. Larson Excavating Contractors,
Inc. were the apparent lowest bidder at $892,290.56. Resolution 2023-032 awards the bid for the project.
STAFF RECOMMENDED ACTION
• Conduct public hearing on proposed assessments.
• Motion to approve Resolution 2023-031 Awarding Bid to Larson Excavating Contractors, Inc. for the
2023 Street Improvements.
• Motion to approve Resolution 2023-032 Adopting Final Assessments.
SUPPORTING DATA/ATTACHMENTS
• Resolution 2023-031 Awarding Bid
• Bid Tabulation
• Resolution 2023-032 Adopting Final Assessments
• Final Assessment Roll
Page 1
TABULATION OF BIDS
PROJECT NO.: STJOE 170731
NAME: 2023 STREET IMPROVEMENTS
OWNER: CITY OF ST. JOSEPH
BID DATE: 11:00 A.M., THURSDAY, JUNE 8, 2023
123
ENGINEER'S ESTIMATE LARSON EXCAVATING C&L EXCAVATING MN PAVING & MATERIALS
ITEM QUANTITY UNIT DESCRIPTION UNIT COST TOTAL UNIT COST TOTAL UNIT COST TOTAL UNIT COST TOTAL
GENERAL
1 1.00 LUMP SUM MOBILIZATION $50,000.00 $50,000.00 $15,307.91 $15,307.91 $70,000.00 $70,000.00 $54,546.84 $54,546.84
2 1.00 LUMP SUM TRAFFIC CONTROL $30,000.00 $30,000.00 $4,896.00 $4,896.00 $7,000.00 $7,000.00 $5,479.36 $5,479.36
3 28.00 EACH REMOVE SIGN ASSEMBLY $50.00 $1,400.00 $22.00 $616.00 $30.00 $840.00 $25.37 $710.36
4 1,568.00 LIN FT REMOVE CONCRETE CURB & GUTTER $9.00 $14,112.00 $10.00 $15,680.00 $4.00 $6,272.00 $4.10 $6,428.80
5 51.00 SQ YD REMOVE CONCRETE WALK $13.00 $663.00 $25.00 $1,275.00 $10.00 $510.00 $10.25 $522.75
6 166.00 SQ YD REMOVE CONCRETE DRIVEWAY PAVEMENT $17.00 $2,822.00 $25.00 $4,150.00 $20.00 $3,320.00 $20.50 $3,403.00
7 1,089.00 LIN FT SAWING BITUMINOUS PAVEMENT (FULL
DEPTH)
$4.00 $4,356.00 $3.00 $3,267.00 $2.00 $2,178.00 $1.88 $2,047.32
8 11.00 EACH STABILIZED CONSTRUCTION EXIT $2,000.00 $22,000.00 $500.00 $5,500.00 $150.00 $1,650.00 $461.18 $5,072.98
STREETS
9 527.00 LIN FT REMOVE PIPE SEWER (STORM) $19.00 $10,013.00 $5.00 $2,635.00 $4.00 $2,108.00 $4.10 $2,160.70
10 8.00 EACH REMOVE DRAINAGE STRUCTURE $700.00 $5,600.00 $100.00 $800.00 $300.00 $2,400.00 $307.45 $2,459.60
11 850.00 CU YD COMMON EXCAVATION (P) $18.00 $15,300.00 $15.00 $12,750.00 $16.00 $13,600.00 $20.50 $17,425.00
12 3,726.00 SQ YD MILL BITUMINOUS SURFACE $4.20 $15,649.20 $2.14 $7,973.64 $2.25 $8,383.50 $2.12 $7,899.12
13 1,043.00 CU YD SELECT GRANULAR EMBANKMENT-SUPER
SAND (CV)
$20.00 $20,860.00 $25.00 $26,075.00 $16.00 $16,688.00 $16.40 $17,105.20
14 477.00 CU YD SELECT GRANULAR BORROW (CV) $20.00 $9,540.00 $15.00 $7,155.00 $21.00 $10,017.00 $21.52 $10,265.04
15 41.00 ROAD STA SUBGRADE PREPARATION $270.00 $11,070.00 $500.00 $20,500.00 $250.00 $10,250.00 $256.21 $10,504.61
16 1,202.00 MGAL WATER $10.00 $12,020.00 $2.00 $2,404.00 $5.00 $6,010.00 $40.99 $49,269.98
17 12,092.00 SQ YD REMOVE BITUMINOUS PAVEMENT $4.00 $48,368.00 $3.06 $37,001.52 $3.00 $36,276.00 $3.07 $37,122.44
18 122.00 SQ YD BITUMINOUS STREET PATCH $60.00 $7,320.00 $49.78 $6,073.16 $48.00 $5,856.00 $51.97 $6,340.34
19 488.00 TON TYPE SP 9.5 WEARING COURSE MIXTURE
(SPWEA340C)
$89.00 $43,432.00 $96.44 $47,062.72 $100.00 $48,800.00 $97.45 $47,555.60
20 588.00 TON TYPE SP 12.5 WEARING COURSE MIXTURE
(SPWEB330C)
$87.00 $51,156.00 $96.03 $56,465.64 $99.00 $58,212.00 $97.01 $57,041.88
21 1,457.00 TON TYPE SP 9.5 WEARING COURSE MIXTURE
(SPWEA230C)
$85.00 $123,845.00 $91.90 $133,898.30 $95.00 $138,415.00 $92.96 $135,442.72
22 823.00 TON TYPE SP 12.5 WEARING COURSE MIXTURE
(SPWEB230C)
$83.00 $68,309.00 $93.59 $77,024.57 $97.00 $79,831.00 $94.61 $77,864.03
23 1,384.00 GAL BITUMINOUS MATERIAL FOR TACK COAT $2.30 $3,183.20 $2.04 $2,823.36 $2.00 $2,768.00 $2.03 $2,809.52
24 480.00 CU YD AGGREGATE BASE CLASS 5 (CV) $33.00 $15,840.00 $35.00 $16,800.00 $36.50 $17,520.00 $37.41 $17,956.80
25 740.00 SQ YD GEOTEXTILE FABRIC TYPE V $3.00 $2,220.00 $2.57 $1,901.80 $1.75 $1,295.00 $1.79 $1,324.60
26 320.00 SQ YD GEOGRID $4.00 $1,280.00 $11.60 $3,712.00 $3.50 $1,120.00 $3.59 $1,148.80
27 1.00 EACH CONNECT TO EXISTING SANITARY SEWER $2,000.00 $2,000.00 $2,571.51 $2,571.51 $2,000.00 $2,000.00 $2,049.69 $2,049.69
28 4.00 EACH CONNECT TO EXISTING STORM SEWER $2,000.00 $8,000.00 $1,500.00 $6,000.00 $1,200.00 $4,800.00 $1,229.81 $4,919.24
29 378.00 LIN FT CLEAN AND VIDEO TAPE PIPE SEWER $2.00 $756.00 $3.30 $1,247.40 $3.00 $1,134.00 $3.07 $1,160.46
30 450.00 LIN FT CLEAN STORM SEWER PIPE $2.00 $900.00 $2.75 $1,237.50 $3.00 $1,350.00 $3.07 $1,381.50
31 27.00 LIN FT 2" COPPER WATER SERVICE PIPE $30.00 $810.00 $261.20 $7,052.40 $50.00 $1,350.00 $51.24 $1,383.48
32 1.00 EACH 2" CURB STOP AND BOX $700.00 $700.00 $1,786.68 $1,786.68 $4,000.00 $4,000.00 $4,099.38 $4,099.38
33 378.00 LIN FT 8" PVC PIPE SEWER $75.00 $28,350.00 $88.24 $33,354.72 $56.00 $21,168.00 $57.39 $21,693.42
34 1.00 EACH CONSTRUCT DRAINAGE STRUCTURE DES
4007
$8,000.00 $8,000.00 $5,672.79 $5,672.79 $5,500.00 $5,500.00 $5,636.64 $5,636.64
35 6.00 EACH 8X6 PVC WYE $800.00 $4,800.00 $809.74 $4,858.44 $650.00 $3,900.00 $666.15 $3,996.90
36 72.00 LIN FT 6" PVC PIPE SEWER $50.00 $3,600.00 $63.66 $4,583.52 $55.00 $3,960.00 $56.37 $4,058.64
37 196.00 LIN FT 12" RC PIPE SEWER $60.00 $11,760.00 $81.29 $15,932.84 $72.00 $14,112.00 $73.79 $14,462.84
38 238.00 LIN FT 15" RC PIPE SEWER $70.00 $16,660.00 $87.63 $20,855.94 $80.00 $19,040.00 $81.99 $19,513.62
39 75.00 LIN FT 27" RC PIPE SEWER $120.00 $9,000.00 $132.28 $9,921.00 $154.00 $11,550.00 $157.83 $11,837.25
40 41.00 LIN FT 30" RC PIPE SEWER $130.00 $5,330.00 $145.45 $5,963.45 $290.00 $11,890.00 $297.20 $12,185.20
41 4.00 EACH DRAINAGE STRUCTURE DES H $2,000.00 $8,000.00 $2,057.74 $8,230.96 $2,700.00 $10,800.00 $2,767.08 $11,068.32
42 6.00 EACH DRAINAGE STRUCTURE DES 48-4020 $3,500.00 $21,000.00 $4,649.72 $27,898.32 $4,200.00 $25,200.00 $4,304.34 $25,826.04
43 1.00 EACH DRAINAGE STRUCTURE DES 60-4020 $4,300.00 $4,300.00 $7,321.19 $7,321.19 $7,400.00 $7,400.00 $7,583.84 $7,583.84
44 12.00 EACH CASTING ASSEMBLY $900.00 $10,800.00 $1,380.16 $16,561.92 $1,150.00 $13,800.00 $1,178.57 $14,142.84
45 486.00 LIN FT 4" PERF PIPE DRAIN $10.00 $4,860.00 $8.61 $4,184.46 $12.00 $5,832.00 $12.30 $5,977.80
46 736.00 LIN FT 6" PERF PVC PIPE DRAIN $18.00 $13,248.00 $20.58 $15,146.88 $14.00 $10,304.00 $14.35 $10,561.60
47 7.00 EACH 6" PVC CLEANOUT $300.00 $2,100.00 $543.56 $3,804.92 $500.00 $3,500.00 $512.42 $3,586.94
Short Elliott Hendrickson Inc., 2351 Connecticut Avenue, Suite 300, Sartell, MN 56377
SEH is 100% employee-owned | www.sehinc.com | 320.229.4300 | 800.572.0617 | 888.908.8166 fax 6/15/2023
Page 2
TABULATION OF BIDS
PROJECT NO.: STJOE 170731
NAME: 2023 STREET IMPROVEMENTS
OWNER: CITY OF ST. JOSEPH
BID DATE: 11:00 A.M., THURSDAY, JUNE 8, 2023
123
ENGINEER'S ESTIMATE LARSON EXCAVATING C&L EXCAVATING MN PAVING & MATERIALS
ITEM QUANTITY UNIT DESCRIPTION UNIT COST TOTAL UNIT COST TOTAL UNIT COST TOTAL UNIT COST TOTAL
48 40.00 SQ YD 4" THICK INSULATION $60.00 $2,400.00 $61.02 $2,440.80 $80.00 $3,200.00 $81.99 $3,279.60
49 153.00 SQ FT 4" CONCRETE WALK W/ SAND BEDDING $9.00 $1,377.00 $26.50 $4,054.50 $27.00 $4,131.00 $27.42 $4,195.26
50 306.00 SQ FT 6" CONCRETE WALK $12.00 $3,672.00 $26.50 $8,109.00 $27.00 $8,262.00 $27.42 $8,390.52
51 166.00 SQ YD CONCRETE DRIVEWAY PAVEMENT $95.00 $15,770.00 $97.90 $16,251.40 $105.00 $17,430.00 $106.64 $17,702.24
52 42.00 SQ FT TRUNCATED DOMES $70.00 $2,940.00 $78.52 $3,297.84 $80.00 $3,360.00 $77.12 $3,239.04
53 1,568.00 LIN FT CONCRETE CURB & GUTTER, DESIGN B618 $35.00 $54,880.00 $42.84 $67,173.12 $44.00 $68,992.00 $42.62 $66,828.16
54 69.00 EACH SAW AND SEAL CONCRETE CURB AND
GUTTER CRACK
$40.00 $2,760.00 $48.96 $3,378.24 $50.00 $3,450.00 $48.71 $3,360.99
55 23.00 EACH CHIMNEY SEAL $250.00 $5,750.00 $320.04 $7,360.92 $300.00 $6,900.00 $307.45 $7,071.35
56 15.00 EACH F&I PAVING RING (MANHOLE) $400.00 $6,000.00 $375.05 $5,625.75 $300.00 $4,500.00 $307.45 $4,611.75
57 24.00 EACH ADJUST FRAME & RING CASTING $1,100.00 $26,400.00 $432.52 $10,380.48 $600.00 $14,400.00 $830.30 $19,927.20
58 13.00 EACH ADJUST GATE VALVE BOX $480.00 $6,240.00 $232.52 $3,022.76 $300.00 $3,900.00 $440.00 $5,720.00
59 9.00 EACH F&I PAVING RING (GATE VALVE)$150.00 $1,350.00 $155.01 $1,395.09 $100.00 $900.00 $102.48 $922.32
60 5.00 EACH PAVEMENT MESSAGE-'STOP' $150.00 $750.00 $357.57 $1,787.85 $350.00 $1,750.00 $329.78 $1,648.90
61 104.00 LIN FT 24" SOLID LINE MULTI COMP GR IN $11.00 $1,144.00 $20.24 $2,104.96 $19.00 $1,976.00 $18.67 $1,941.68
62 44.00 SQ YD PAVT MSSG-CROSSWALK MULTI COMP GR
IN
$60.00 $2,640.00 $99.02 $4,356.88 $95.00 $4,180.00 $91.32 $4,018.08
63 100.90 SQ FT F&I SIGN PANELS TYPE C $95.00 $9,585.50 $71.51 $7,215.36 $73.00 $7,365.70 $71.03 $7,166.93
64 11.00 EACH F&I STREET NAME SIGN ASSEMBLY $280.00 $3,080.00 $440.08 $4,840.88 $315.00 $3,465.00 $304.41 $3,348.51
65 23.00 HOUR STREET SWEEPING TYPE WET PICKUP $180.00 $4,140.00 $100.00 $2,300.00 $150.00 $3,450.00 $162.35 $3,734.05
TURF RESTORATION
66 36.00 EACH STORM DRAIN INLET PROTECTION $200.00 $7,200.00 $100.00 $3,600.00 $125.00 $4,500.00 $141.04 $5,077.44
67 690.00 CU YD COMMON TOPSOIL BORROW (LV) $23.00 $15,870.00 $10.00 $6,900.00 $34.00 $23,460.00 $34.84 $24,039.60
68 0.51 ACRE SEEDING $1,700.00 $867.00 $5,100.00 $2,601.00 $5,000.00 $2,550.00 $6,088.18 $3,104.97
69 191.00 POUND SEED MIXTURE 25-151 $7.00 $1,337.00 $3.57 $681.87 $8.50 $1,623.50 $8.22 $1,570.02
70 1,623.00 POUND HYDRAULIC MATRIX TYPE BFM $2.50 $4,057.50 $3.06 $4,966.38 $3.15 $5,112.45 $2.43 $3,943.89
71 167.00 POUND FERTILIZER TYPE 22-5-10 $1.50 $250.50 $3.06 $511.02 $2.00 $334.00 $2.03 $339.01
GRAND TOTAL BID $935,792.90 $892,290.56 $933,101.15 $972,214.54
X:\PT\S\STJOE\170731\6-bid-const\Bidding\[Bid Tabulation.xlsx]BIDTAB
Short Elliott Hendrickson Inc., 2351 Connecticut Avenue, Suite 300, Sartell, MN 56377
SEH is 100% employee-owned | www.sehinc.com | 320.229.4300 | 800.572.0617 | 888.908.8166 fax 6/15/2023
Page 3
TABULATION OF BIDS
PROJECT NO.: STJOE 170731
NAME: 2023 STREET IMPROVEMENTS
OWNER: CITY OF ST. JOSEPH
BID DATE: 11:00 A.M., THURSDAY, JUNE 8, 2023
ITEM QUANTITY UNIT DESCRIPTION
GENERAL
1 1.00 LUMP SUM MOBILIZATION
2 1.00 LUMP SUM TRAFFIC CONTROL
3 28.00 EACH REMOVE SIGN ASSEMBLY
4 1,568.00 LIN FT REMOVE CONCRETE CURB & GUTTER
5 51.00 SQ YD REMOVE CONCRETE WALK
6 166.00 SQ YD REMOVE CONCRETE DRIVEWAY PAVEMENT
7 1,089.00 LIN FT SAWING BITUMINOUS PAVEMENT (FULL
DEPTH)8 11.00 EACH STABILIZED CONSTRUCTION EXIT
STREETS
9 527.00 LIN FT REMOVE PIPE SEWER (STORM)
10 8.00 EACH REMOVE DRAINAGE STRUCTURE
11 850.00 CU YD COMMON EXCAVATION (P)
12 3,726.00 SQ YD MILL BITUMINOUS SURFACE
13 1,043.00 CU YD SELECT GRANULAR EMBANKMENT-SUPER
SAND (CV)
14 477.00 CU YD SELECT GRANULAR BORROW (CV)
15 41.00 ROAD STA SUBGRADE PREPARATION
16 1,202.00 MGAL WATER
17 12,092.00 SQ YD REMOVE BITUMINOUS PAVEMENT
18 122.00 SQ YD BITUMINOUS STREET PATCH
19 488.00 TON TYPE SP 9.5 WEARING COURSE MIXTURE
(SPWEA340C)
20 588.00 TON TYPE SP 12.5 WEARING COURSE MIXTURE
(SPWEB330C)21 1,457.00 TON TYPE SP 9.5 WEARING COURSE MIXTURE
(SPWEA230C)
22 823.00 TON TYPE SP 12.5 WEARING COURSE MIXTURE
(SPWEB230C)23 1,384.00 GAL BITUMINOUS MATERIAL FOR TACK COAT
24 480.00 CU YD AGGREGATE BASE CLASS 5 (CV)
25 740.00 SQ YD GEOTEXTILE FABRIC TYPE V
26 320.00 SQ YD GEOGRID
27 1.00 EACH CONNECT TO EXISTING SANITARY SEWER
28 4.00 EACH CONNECT TO EXISTING STORM SEWER
29 378.00 LIN FT CLEAN AND VIDEO TAPE PIPE SEWER
30 450.00 LIN FT CLEAN STORM SEWER PIPE
31 27.00 LIN FT 2" COPPER WATER SERVICE PIPE
32 1.00 EACH 2" CURB STOP AND BOX
33 378.00 LIN FT 8" PVC PIPE SEWER
34 1.00 EACH CONSTRUCT DRAINAGE STRUCTURE DES
400735 6.00 EACH 8X6 PVC WYE
36 72.00 LIN FT 6" PVC PIPE SEWER
37 196.00 LIN FT 12" RC PIPE SEWER
38 238.00 LIN FT 15" RC PIPE SEWER
39 75.00 LIN FT 27" RC PIPE SEWER
40 41.00 LIN FT 30" RC PIPE SEWER
41 4.00 EACH DRAINAGE STRUCTURE DES H
42 6.00 EACH DRAINAGE STRUCTURE DES 48-4020
43 1.00 EACH DRAINAGE STRUCTURE DES 60-4020
44 12.00 EACH CASTING ASSEMBLY
45 486.00 LIN FT 4" PERF PIPE DRAIN
46 736.00 LIN FT 6" PERF PVC PIPE DRAIN
47 7.00 EACH 6" PVC CLEANOUT
456
ASPHALT SURFACE TECH KNIFE RIVER J.R. FERCHE
UNIT COST TOTAL UNIT COST TOTAL UNIT COST TOTAL
$58,000.00 $58,000.00 $95,000.00 $95,000.00 $90,935.00 $90,935.00
$6,050.00 $6,050.00 $15,000.00 $15,000.00 $10,000.00 $10,000.00
$27.50 $770.00 $20.00 $560.00 $30.00 $840.00
$7.37 $11,556.16 $11.00 $17,248.00 $15.00 $23,520.00
$24.97 $1,273.47 $20.00 $1,020.00 $20.00 $1,020.00
$22.50 $3,735.00 $20.00 $3,320.00 $20.00 $3,320.00
$3.00 $3,267.00 $2.00 $2,178.00 $2.75 $2,994.75
$330.00 $3,630.00 $250.00 $2,750.00 $1,000.00 $11,000.00
$16.50 $8,695.50 $4.00 $2,108.00 $15.00 $7,905.00
$825.00 $6,600.00 $300.00 $2,400.00 $450.00 $3,600.00
$26.40 $22,440.00 $20.00 $17,000.00 $65.00 $55,250.00
$1.32 $4,918.32 $5.50 $20,493.00 $2.82 $10,507.32
$27.50 $28,682.50 $60.00 $62,580.00 $45.00 $46,935.00
$24.20 $11,543.40 $22.00 $10,494.00 $30.00 $14,310.00
$374.00 $15,334.00 $365.00 $14,965.00 $765.00 $31,365.00
$45.00 $54,090.00 $8.00 $9,616.00 $2.00 $2,404.00
$2.31 $27,932.52 $5.00 $60,460.00 $3.65 $44,135.80
$59.40 $7,246.80 $85.00 $10,370.00 $70.00 $8,540.00
$103.51 $50,512.88 $115.00 $56,120.00 $106.00 $51,728.00
$98.45 $57,888.60 $115.00 $67,620.00 $105.00 $61,740.00
$107.14 $156,102.98 $100.00 $145,700.00 $101.00 $147,157.00
$123.20 $101,393.60 $100.00 $82,300.00 $103.00 $84,769.00
$3.00 $4,152.00 $0.01 $13.84 $3.00 $4,152.00
$50.38 $24,182.40 $40.00 $19,200.00 $47.00 $22,560.00
$1.98 $1,465.20 $3.50 $2,590.00 $5.00 $3,700.00
$4.62 $1,478.40 $15.00 $4,800.00 $15.00 $4,800.00
$7,700.00 $7,700.00 $3,000.00 $3,000.00 $5,000.00 $5,000.00
$2,750.00 $11,000.00 $1,500.00 $6,000.00 $2,500.00 $10,000.00
$3.30 $1,247.40 $3.00 $1,134.00 $4.00 $1,512.00
$4.40 $1,980.00 $3.00 $1,350.00 $5.00 $2,250.00
$88.00 $2,376.00 $50.00 $1,350.00 $100.00 $2,700.00
$1,650.00 $1,650.00 $4,000.00 $4,000.00 $2,000.00 $2,000.00
$77.00 $29,106.00 $56.00 $21,168.00 $92.00 $34,776.00
$7,150.00 $7,150.00 $5,500.00 $5,500.00 $5,500.00 $5,500.00
$687.50 $4,125.00 $650.00 $3,900.00 $1,000.00 $6,000.00
$66.00 $4,752.00 $55.00 $3,960.00 $105.00 $7,560.00
$71.50 $14,014.00 $72.00 $14,112.00 $85.00 $16,660.00
$80.30 $19,111.40 $80.00 $19,040.00 $95.00 $22,610.00
$132.00 $9,900.00 $154.00 $11,550.00 $156.00 $11,700.00
$154.00 $6,314.00 $290.00 $11,890.00 $185.00 $7,585.00
$2,640.00 $10,560.00 $2,700.00 $10,800.00 $2,800.00 $11,200.00
$4,400.00 $26,400.00 $4,200.00 $25,200.00 $3,800.00 $22,800.00
$7,150.00 $7,150.00 $7,400.00 $7,400.00 $6,750.00 $6,750.00
$1,540.00 $18,480.00 $1,150.00 $13,800.00 $1,200.00 $14,400.00
$27.50 $13,365.00 $12.00 $5,832.00 $20.00 $9,720.00
$29.70 $21,859.20 $14.00 $10,304.00 $40.00 $29,440.00
$500.00 $3,500.00 $500.00 $3,500.00 $850.00 $5,950.00
Short Elliott Hendrickson Inc., 2351 Connecticut Avenue, Suite 300, Sartell, MN 56377
SEH is 100% employee-owned | www.sehinc.com | 320.229.4300 | 800.572.0617 | 888.908.8166 fax 6/15/2023
Page 4
TABULATION OF BIDS
PROJECT NO.: STJOE 170731
NAME: 2023 STREET IMPROVEMENTS
OWNER: CITY OF ST. JOSEPH
BID DATE: 11:00 A.M., THURSDAY, JUNE 8, 2023
ITEM QUANTITY UNIT DESCRIPTION
48 40.00 SQ YD 4" THICK INSULATION
49 153.00 SQ FT 4" CONCRETE WALK W/ SAND BEDDING
50 306.00 SQ FT 6" CONCRETE WALK
51 166.00 SQ YD CONCRETE DRIVEWAY PAVEMENT
52 42.00 SQ FT TRUNCATED DOMES
53 1,568.00 LIN FT CONCRETE CURB & GUTTER, DESIGN B618
54 69.00 EACH SAW AND SEAL CONCRETE CURB AND
GUTTER CRACK55 23.00 EACH CHIMNEY SEAL
56 15.00 EACH F&I PAVING RING (MANHOLE)
57 24.00 EACH ADJUST FRAME & RING CASTING
58 13.00 EACH ADJUST GATE VALVE BOX
59 9.00 EACH F&I PAVING RING (GATE VALVE)
60 5.00 EACH PAVEMENT MESSAGE-'STOP'
61 104.00 LIN FT 24" SOLID LINE MULTI COMP GR IN
62 44.00 SQ YD PAVT MSSG-CROSSWALK MULTI COMP GR
IN
63 100.90 SQ FT F&I SIGN PANELS TYPE C
64 11.00 EACH F&I STREET NAME SIGN ASSEMBLY
65 23.00 HOUR STREET SWEEPING TYPE WET PICKUP
TURF RESTORATION
66 36.00 EACH STORM DRAIN INLET PROTECTION
67 690.00 CU YD COMMON TOPSOIL BORROW (LV)
68 0.51 ACRE SEEDING
69 191.00 POUND SEED MIXTURE 25-151
70 1,623.00 POUND HYDRAULIC MATRIX TYPE BFM
71 167.00 POUND FERTILIZER TYPE 22-5-10
GRAND TOTAL BID
X:\PT\S\STJOE\170731\6-bid-const\Bidding\[Bid Tabulation.xlsx]BIDTAB
456
ASPHALT SURFACE TECH KNIFE RIVER J.R. FERCHE
UNIT COST TOTAL UNIT COST TOTAL UNIT COST TOTAL
$99.00 $3,960.00 $80.00 $3,200.00 $85.00 $3,400.00
$28.60 $4,375.80 $29.00 $4,437.00 $30.00 $4,590.00
$28.60 $8,751.60 $25.00 $7,650.00 $30.00 $9,180.00
$104.50 $17,347.00 $95.00 $15,770.00 $115.00 $19,090.00
$83.60 $3,511.20 $76.00 $3,192.00 $88.00 $3,696.00
$46.20 $72,441.60 $45.00 $70,560.00 $50.00 $78,400.00
$52.80 $3,643.20 $50.00 $3,450.00 $58.00 $4,002.00
$220.00 $5,060.00 $300.00 $6,900.00 $385.00 $8,855.00
$300.00 $4,500.00 $300.00 $4,500.00 $300.00 $4,500.00
$979.00 $23,496.00 $600.00 $14,400.00 $675.00 $16,200.00
$473.00 $6,149.00 $300.00 $3,900.00 $500.00 $6,500.00
$88.00 $792.00 $100.00 $900.00 $250.00 $2,250.00
$357.50 $1,787.50 $325.00 $1,625.00 $360.00 $1,800.00
$18.50 $1,924.00 $18.40 $1,913.60 $21.00 $2,184.00
$90.00 $3,960.00 $90.00 $3,960.00 $100.00 $4,400.00
$77.00 $7,769.30 $65.00 $6,558.50 $75.00 $7,567.50
$330.00 $3,630.00 $400.00 $4,400.00 $500.00 $5,500.00
$176.00 $4,048.00 $85.00 $1,955.00 $165.00 $3,795.00
$150.00 $5,400.00 $170.00 $6,120.00 $250.00 $9,000.00
$23.10 $15,939.00 $50.00 $34,500.00 $30.00 $20,700.00
$275.00 $140.25 $4,500.00 $2,295.00 $5,000.00 $2,550.00
$3.85 $735.35 $8.00 $1,528.00 $5.00 $955.00
$2.00 $3,246.00 $3.00 $4,869.00 $4.00 $6,492.00
$1.10 $183.70 $2.00 $334.00 $3.00 $501.00
$1,097,471.23 $1,119,612.94 $1,211,408.37
Short Elliott Hendrickson Inc., 2351 Connecticut Avenue, Suite 300, Sartell, MN 56377
SEH is 100% employee-owned | www.sehinc.com | 320.229.4300 | 800.572.0617 | 888.908.8166 fax 6/15/2023
RESOLUTION 2023-031
Awarding Bid
2023 Street Improvements
WHEREAS, pursuant to an advertisement for bids for the 2023 Street Improvement Project
affecting the following areas: street resurfacing and sidewalk improvements in the Northland
Plat 4 and Plat 5 neighborhood (7th Avenue Northeast, Gumtree Street East, Gumtree Court,
Fir Street E, and parts of Northland Drive and 5th Avenue Northeast); resurfacing
improvements in parts of the Loso’s 2nd, 4th, and 5th Additions, Peter Loso’s Addition and
St. Joseph Subdivisions (Ash Street East between College Ave and 3rd Ave NE), part of 2nd
Avenue Northeast north of Ash St); street construction in the Northland Business Center 2nd
Addition (Fir Street East extension to 24th Avenue Northeast); alley resurfacing and sanitary
sewer reconstruction at Block 11 in the St. Joseph subdivision; and storm sewer and
pavement reconstruction in Northland Heights (parts of 13th Avenue Northeast, between Iris
Lane and Jasmine Lane, and on Iris Lane East approximately 200 feet on each side of the
13th Ave intersection); and
Bidder Base Bid
Larson Excavating Contractors, Inc $892,290.56
C&L Excavating, Inc. $933,101.15
OMG Midwest Inc. dba MN Paving & Materials $972,214.54
ASTECH $1,097,471.23
Knife River $1,119,612.94
J.R. Ferche $1,211,408.37
WHEREAS, the City Council adopted Resolution 2023-027; and
WHEREAS, it appears that Larson Excavating Contractors, Inc. is the lowest responsible
bidder.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH,
MINNESOTA:
1. The Mayor and Administrator are hereby authorized and directed to enter into a
contract with Larson Excavating Contractors, Inc. in the name of the City of St.
Joseph for the 2023 Street Improvement Project as described above according to the
plans and specifications therefore approved by the City Council and on file in the
office of the Administrator
2. The Administrator is hereby authorized and directed to return forthwith to all bidders
the deposits made with their bids, except that the deposits of the successful bidder
and the next lowest bidder shall be retained until a contract has been signed.
Adopted by the Council this 27th day of June, 2023.
________________ _______
Rick Schultz, Mayor
ATTEST
David Murphy, City Administrator
RESOLUTION 2023-032
ADOPTING FINAL ASSESSMENT
2023 Street Improvements
WHEREAS, pursuant to proper notice duly given as required by law, the council has met and heard and
passed upon all objections to the proposed assessment for the 2023 Street Improvements which affect the
following areas: street resurfacing and sidewalk improvements in the Northland Plat 4 and Plat 5
neighborhood (7th Avenue Northeast, Gumtree Street East, Gumtree Court, Fir Street E, and parts of
Northland Drive and 5th Avenue Northeast); resurfacing improvements in parts of the Loso’s 2nd, 4th, and
5th Additions, Peter Loso’s Addition and St. Joseph Subdivisions (Ash Street East between College Ave
and 3rd Ave NE), part of 2nd Avenue Northeast north of Ash St); street construction in the Northland
Business Center 2nd Addition (Fir Street East extension to 24th Avenue Northeast); alley resurfacing and
sanitary sewer reconstruction at Block 11 in the St. Joseph subdivision; and storm sewer and pavement
reconstruction in Northland Heights (parts of 13th Avenue Northeast, between Iris Lane and Jasmine Lane,
and on Iris Lane East approximately 200 feet on each side of the 13th Ave intersection).
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ST. JOSEPH, MINNESOTA:
1. Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract
of land therein included is hereby found to be benefited by the proposed improvement in the amount
of the assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of 10 years,
the first of the installments to be payable on or before the first Monday in January 2024, and shall
bear an interest rate of 5.0 percent per annum from the date of the adoption of this assessment
resolution. To the first installment shall be added interest on the entire assessment amount from
the date of this resolution until December 31, 2023. To each subsequent installment when due shall
be added interest for one year on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to
the county auditor, pay the whole of the assessment on such property, with interest accrued to the
date of payment, to the city treasurer, except that no interest shall be charged if the entire assessment
is paid within 30 days from the adoption of this resolution; and the property owner may at any time
thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with
interest accrued to December 31 of the year in which such payment is made. Such payment must
be made before November 15 or interest will be charged through December 31 of the succeeding
year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to
be extended on the property tax lists of the county. Such assessments shall be collected and paid
over in the same manner as other municipal taxes.
Adopted by the council this 27th day of June, 2023.
Rick Schultz, Mayor
David Murphy, City Administrator
FINAL SPECIAL ASSESSMENT ROLL 6/12/2023
2023 STREET IMPROVEMENTS 36'-38' WIDE OVERLAY (60%)$38.40 /LF
AUDITORS #04, LOSO'S ADD, LOSO'S ADD 4, LOSO'S ADD 5, TOWNSITE OF ST JOSEPH
SPECIAL
ASSESSMENTS
PARCEL ID
NO.PROPERTY DESCRIPTION
PROPERTY
ADDRESS MAILING ADDRESS OWNER OF RECORD
LONG
SIDE
SHORT
SIDE
LONG
SIDE
SHORT
SIDE
ASSESSED
FOOTAGE
36'-38' MILL &
OVERLAY
1 84.53915.0000
Lot 006 Block 013 of TOWNSITE OF ST JOSEPH
S2 OF LOT 6 BLK 13 13 ASH ST E
9249 CRESTVIEW DR
SAINT JOSEPH MN 56374 NOVAK RENTALS LLC 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
2 84.53918.0000
Lot 007 Block 013 of TOWNSITE OF ST JOSEPH
S150' OF LOT 7 BLK 13 17 ASH ST E
PO BOX 363
SAINT JOSEPH MN 56374 THELEN OSWALD L 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
3 84.53919.0000 Lot 008 Block 013 of TOWNSITE OF ST JOSEPH 21 ASH ST E
PO BOX 36
SAINT JOSEPH MN 56374 JEAN A LOSO REV TRUST 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
4 84.53920.0000
Lot 009 Block 013 of TOWNSITE OF ST JOSEPH
LOTS 9 BLK 13 LOSO'S ADD & LOT 9 BLK 13 25 ASH ST E
PO BOX 36
SAINT JOSEPH MN 56374 JEAN A LOSO REV TRUST 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
5 84.53567.0000
Lot 010 Block 013 of LOSO'S ADD
LOT 10 BLK 13 TOWNSITE OF ST. JOSEPH LOT 29 ASH ST E
PO BOX 885
SAINT JOSEPH MN 56374 ANDREAS DELYTE M 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
6 84.53568.0000 Lot 011 Block 013 of LOSO'S ADD 33 ASH ST E
PO BOX 352
SAINT JOSEPH MN 56374 LEMKE KAY F 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
7 84.53451.0005
Lot 020 of AUD SUBD #04
W 37' OF S 180' OF LOT 20 N/A
75 CALLAWAY ST E
SAINT JOSEPH MN 56374 CITY OF ST JOSEPH 37.00 37.00 37.00 $1,420.80 $1,420.80 $1,420.80
8 84.53693.0000
Lot 005 Block 001 of LOSO'S 5TH ADD
FR. .20 A. OF LOT 20 AUD SUBD #4 & LOTS 5 & 6 41 ASH ST E
41 ASH ST NW
SAINT JOSEPH MN 56374 KUNKEL BRENDA 71.00 71.00 71.00 $2,726.40 $2,726.40 $2,726.40
9 84.53699.0000
Lot 007 Block 002 of LOSO'S 5TH ADD
W 35' OF LOT 7 & ALL OF LOT 8 BLK 2 103 ASH ST E
103 E ASH ST
SAINT JOSEPH MN 56374 KLAPHAKE BARBARA 92.50 92.50 92.50 $3,552.00 $3,552.00 $3,552.00
10 84.53698.0000
Lot 006 Block 002 of LOSO'S 5TH ADD
LOT 6 & E'LY 20' OF LOT 7 BLK 2 107 ASH ST E
107 E ASH ST
SAINT JOSEPH MN 56374
HUFFMAN STEPHANO K
HUFFMAN-WERTISH ANNA-75.00 75.00 75.00 $2,880.00 $2,880.00 $2,880.00
11 84.53697.0000 Lot 005 Block 002 of LOSO'S 5TH ADD 111 ASH ST E
PO BOX 591
SAINT JOSEPH MN 56374 KOSEL KARL L 55.00 55.00 55.00 $2,112.00 $2,112.00 $2,112.00
12 84.53696.0000 Lot 004 Block 002 of LOSO'S 5TH ADD 117 ASH ST E
31197 115TH AVE
SAINT JOSEPH MN 56374 KMKM LLC 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
13 84.53695.0000 Lot 003 Block 002 of LOSO'S 5TH ADD 121 ASH ST E
PO BOX 274
SAINT JOSEPH MN 56374
BORRESCH TIMOTHY A &
SUSAN M 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
14 84.53694.0000
Lot 001 Block 002 of LOSO'S 5TH ADD
LOTS 1 & 2 BLK 2
105 2ND AVE
NE
PO BOX 582
SAINT JOSEPH MN 56374
TOLLEFSRUD DAVID A
SCHUTZ PATRICIA A 191.00 99.00 95.50 99.00 194.50 $7,468.80 $7,468.80 $2,968.80 $4,500.00
15 84.53702.0000
Lot 017 Block 002 of LOSO'S 5TH ADD
LOTS 17 & 18 BLK 2
115 2ND AVE
NE
115 2ND AVE NE
SAINT JOSEPH MN 56374 ARNDT HANNA G 90.80 90.80 90.80 $3,486.72 $3,486.72 $3,486.72
16 84.53708.0004
Lot 009 Block 003 of LOSO'S 5TH ADD
W95.5' OF LOTS 9 & 10 BLK 3
114 2ND AVE
NE
114 2ND AVE NE
SAINT JOSEPH MN 56374 LINDBOE JORDAN K 90.80 90.80 90.80 $3,486.72 $3,486.72 $3,486.72
17 84.53707.0000 Lot 008 Block 003 of LOSO'S 5TH ADD 203 ASH ST E
PO BOX 654
SAINT JOSEPH MN 56374 SIMON WILLIAM V & MARY E 184.50 51.00 92.25 51.00 143.25 $5,500.80 $5,500.80 $1,000.80 $4,500.00
18 84.53706.0000 Lot 007 Block 003 of LOSO'S 5TH ADD 205 ASH ST E
PO BOX 315
SAINT JOSEPH MN 56374 LUELLA M GALAMA TRUST 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
19 84.53705.0000
Lot 005 Block 003 of LOSO'S 5TH ADD
LOTS 5 & 6 BLK 3 209 ASH ST E
209 E ASH ST
SAINT JOSEPH MN 56374 HULSTRAND NATHAN E 100.00 100.00 100.00 $3,840.00 $3,840.00 $3,840.00
20 84.53704.0000
Lot 003 Block 003 of LOSO'S 5TH ADD
LOTS 3 & 4 BLK 3 215 ASH ST E
PO BOX 572
SAINT JOSEPH MN 56374
MALESKA ALOYS L
MALESKA MARLENE M 100.00 100.00 100.00 $3,840.00 $3,840.00 $3,840.00
21 84.53703.0000
Lot 001 Block 003 of LOSO'S 5TH ADD
LOTS 1 & 2 BLK 3 221 ASH ST E
221 E ASH ST
SAINT JOSEPH MN 56374 WENDT CONNOR J 100.00 100.00 100.00 $3,840.00 $3,840.00 $3,840.00
22 84.53654.0000
Lot 001 Block 001 of LOSO'S 4TH ADD
N2 OF LOTS 1 & 2 BLK 1
220 ASH ST
E
220 E ASH ST
SAINT JOSEPH MN 56374 LEE CAROL J 100.00 100.00 100.00 $3,840.00 $3,840.00 $3,840.00
23 84.53655.0000 Lot 003 Block 001 of LOSO'S 4TH ADD 216 ASH ST E
PO BOX 152
SAINT JOSEPH MN 56374 LOSO TIMOTHY D & PAMELA J 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
24 84.53656.0000
Lot 004 Block 001 of LOSO'S 4TH ADD
LOT 4 & E15' BLK 1 OF 5 212 ASH ST E
212 E ASH ST
SAINT JOSEPH MN 56374 BOLEYN SARA E 65.00 65.00 65.00 $2,496.00 $2,496.00 $2,496.00
25 84.53657.0000
Lot 005 Block 001 of LOSO'S 4TH ADD
LOTS 5 & 6 LESS E15' OF 5 BLK 1 208 ASH ST E
208 E ASH ST
SAINT JOSEPH MN 56374
HELM JONATHAN G
HELM KAYLA R 85.00 85.00 85.00 $3,264.00 $3,264.00 $3,264.00
26 84.53658.0000
Lot 007 Block 001 of LOSO'S 4TH ADD
N114' OF LOTS 7 & 8 BLK 1
30 2ND AVE
NE
PO BOX 635
SAINT JOSEPH MN 56374
THEISEN GERALD M & LEROY
S 100.00 100.00 100.00 $3,840.00 $3,840.00 $3,840.00
27 84.53599.0000 Lot 001 Block 001 of LOSO'S 2ND ADD
31 2ND AVE
NE
31 2ND AVE NE
SAINT JOSEPH MN 56374
WALLING AARON
WALLING AMBER 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
28 84.53600.0000 Lot 002 Block 001 of LOSO'S 2ND ADD 120 ASH ST E
120 E ASH ST
SAINT JOSEPH MN 56374
THOMPSON KEZIAH R
FUCHS JEREMY M 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
29 84.53601.0000 Lot 003 Block 001 of LOSO'S 2ND ADD 118 ASH ST E
118 E ASH ST
SAINT JOSEPH MN 56374
SCHMITZ ROBERT D
SCHMITZ KRISTINA L 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
30 84.53601.0002 Lot 004 Block 001 of LOSO'S 2ND ADD 116 ASH ST E
PO BOX 505
SAINT JOSEPH MN 56374
ANDERSON JOHN M & CAROL
A 50.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
31 84.53604.0000
Lot 005 Block 001 of LOSO'S 2ND ADD
E60' OF LOT 5 110 ASH ST E
205 PONDVIEW LN
SAINT JOSEPH MN 56374 WALZ ROY A 60.00 60.00 60.00 $2,304.00 $2,304.00 $2,304.00
32 84.53604.0006
Lot 005 Block 001 of LOSO'S 2ND ADD
W60' OF E120' OF LOT 5 108 ASH ST E
PO BOX 5131
SAINT CLOUD MN 56302 WALZ JOY A 60.00 60.00 60.00 $2,304.00 $2,304.00 $2,304.00
33 84.53603.0000
Lot 005 Block 001 of LOSO'S 2ND ADD
N55' OF W100' OF LOT 5 BLK 1
34 1ST AVE
NE
34 1ST AVE NE
SAINT JOSEPH MN 56374 GLATZEL MARK J 100.00 50.00 50.00 $1,920.00 $1,920.00 $1,920.00
34 84.53878.0000
Lot 009 Block 010 of TOWNSITE OF ST JOSEPH
N62' OF LOTS 9 & 10 BLK 10
35 1ST AVE
NE
35 1ST AVE NE
SAINT JOSEPH MN 56374 HAAKONSON KURT E 132.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
35 84.53875.0000
Lot 008 Block 010 of TOWNSITE OF ST JOSEPH
N102' OF LOT 8 BLK 10 34 ASH ST E
PO BOX 46
SAINT JOSEPH MN 56374 LARSON NATALIE A 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
36 84.53874.0000
Lot 007 Block 010 of TOWNSITE OF ST JOSEPH
N 125' OF LOT 7 28 ASH ST E
PO BOX 820
SAINT JOSEPH MN 56374 LUNA PROPERTIES LLC 66.00 66.00 66.00 $2,534.40 $2,534.40 $2,534.40
37 84.53873.0005
Lot 003 Block 010 of TOWNSITE OF ST JOSEPH
Lot 006 Block 010 of TOWNSITE OF ST JOSEPH 22 ASH ST E
PO BOX 836
SAINT JOSEPH MN 56374
BLACK KEITH R
BLACK SANDRA A 72.00 72.00 72.00 $2,764.80 $2,764.80 $2,764.80
38 84.53866.0020
Lot 001 Block 010 of TOWNSITE OF ST JOSEPH
Lot 002 Block 010 of TOWNSITE OF ST JOSEPH
34 COLLEGE
AVE N
1598 BLACKBERRY CIR
SARTELL MN 56377 COLLEGE & MINNESOTA LLC 212.00 106.00 106.00 $4,070.40 $4,070.40 $4,070.40
F:\CITY\shared\2023 Street Improvements\[Final Assessment Worksheet-CITY.xlsx]Loso's TOTALS 819.50 2432.10 409.75 2432.10 2841.85 $109,127.04 $109,127.04 $3,969.60 $105,157.44
LINE
NO.
TOTAL
ASSESSMENT
PLATTED ADBUTTING
FOOTAGE
36'-38' WIDE MILL AND OVERLAY
ADJUSTED FOOTAGE SUBTOTAL
ASSESSMEN
T
CITY
SUBSIDY
Page 1
DRAFT
FINAL SPECIAL ASSESSMENT ROLL 6/12/2023
32' WIDE MILL AND PAVE (60%)$48.86 /LF
2023 STREET IMPROVEMENTS 36' WIDE MILL AND PAVE (60%)$60.52 /LF
NORTHLAND PLATS 3, 4, 5 40' WIDE MILL AND PAVE (60%)$95.43 /LF
LINE NO.PARCEL ID NO.PROPERTY DESCRIPTION PROPERTY ADDRESS MAILING ADDRESS OWNER OF RECORD
LONG
SIDE
SHORT
SIDE
LONG
SIDE
SHORT
SIDE
ASSESSED
FOOTAGE
LONG
SIDE
SHORT
SIDE
ASSESSED
FOOTAGE
LONG
SIDE
SHORT
SIDE
ASSESSED
FOOTAGE
32' MILL AND
PAVE
36' MILL AND
PAVE
40' MILL AND
PAVE
1 84.53734.0118 Lot 004 Block 003 of NORTHLAND PLAT THREE 508 GUMTREE ST E
508 GUMTREE ST NE
SAINT JOSEPH MN 56374 MEYER-BERG THERESA V 120.78 60.39 60.39 $5,763.02 $5,763.02 $5,763.02
2 84.53734.0150 Lot 002 Block 002 of NORTHLAND PLAT FOUR 613 NORTHLAND DR
613 NORTHLAND DR
SAINT JOSEPH MN 56374
ROTHSTEIN JAMES J & MELISSA
C 75.94 75.94 75.94 $7,246.95 $7,246.95 $746.95 $6,500.00
3 84.53734.0154 Lot 006 Block 002 of NORTHLAND PLAT FOUR 521 FIR ST E
521 FIR ST NE
SAINT JOSEPH MN 56374 COOPER SEAN 136.56 94.64 94.64 94.64 68.28 68.28 $6,515.96 $6,515.96 $15.96 $6,500.00
4 84.53734.0153 Lot 005 Block 002 of NORTHLAND PLAT FOUR 515 FIR ST E
515 FIR ST NE
SAINT JOSEPH MN 56374
SCOTT RICHARD
SCOTT SHEILA 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
5 84.53734.0152 Lot 004 Block 002 of NORTHLAND PLAT FOUR 509 FIR ST E
509 FIR ST NE
SAINT JOSEPH MN 56374 WOLLE DENNIS L & DONNA J 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
6 84.53734.0151 Lot 003 Block 002 of NORTHLAND PLAT FOUR 505 FIR ST NE
505 FIR ST NE
SAINT JOSEPH MN 56374
JORSCHUMB DARRIN W
DEMEL KAYE M 122.45 103.92 122.45 103.92 226.37 $11,060.44 $11,060.44 $4,560.44 $6,500.00
7 84.53734.0142 Lot 003 Block 001 of NORTHLAND PLAT FOUR 609 5TH AVE NE
609 5TH AVE NE
SAINT JOSEPH MN 56374 KREMER JEFFREY T & ROBIN B 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
8 84.53734.0143 Lot 004 Block 001 of NORTHLAND PLAT FOUR 601 5TH AVE NE
601 5TH AVE NE
SAINT JOSEPH MN 56374 MILES TIMOTHY J 84.55 142.00 142.00 $6,938.12 $6,938.12 $438.12 $6,500.00
9 84.53734.0144 Lot 005 Block 001 of NORTHLAND PLAT FOUR 502 FIR ST E
502 FIR ST NE
SAINT JOSEPH MN 56374 BUTKOWSKI MELVIN A & CAROL 75.68 131.00 131.00 $6,400.66 $6,400.66 $6,400.66
10 84.53734.0145 Lot 006 Block 001 of NORTHLAND PLAT FOUR 506 FIR ST E
506 FIR ST NE
SAINT JOSEPH MN 56374
MUSKE TIMOTHY N
MUSKE MICHELE 79.42 79.42 79.42 $3,880.46 $3,880.46 $3,880.46
11 84.53734.0146 Lot 007 Block 001 of NORTHLAND PLAT FOUR 510 FIR ST E
510 FIR ST NE
SAINT JOSEPH MN 56374 HULTQUIST KATHERINE E 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
12 84.53734.0147 Lot 008 Block 001 of NORTHLAND PLAT FOUR 516 FIR ST E
516 FIR ST NE
SAINT JOSEPH MN 56374
VANCE CHRISTOPHER D &
YVETTE 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
13 84.53734.0148 Lot 009 Block 001 of NORTHLAND PLAT FOUR 522 FIR ST E
2410 HIGHLAND TRL SW
ALEXANDRIA MN 56308
SCHULTZ MARTIN D
SCHULTZ HEIDI E 137.44 95.37 95.37 95.37 68.72 68.72 $4,659.78 $4,659.78 $4,659.78
14 84.53734.0157 Lot 001 Block 004 of NORTHLAND PLAT FOUR 606 FIR ST E
606 FIR ST NE
SAINT JOSEPH MN 56374
LINDGREN MICHAEL
LINDGREN MARI 137.44 100.00 100.00 100.00 68.72 68.72 $4,886.00 $4,886.00 $4,886.00
15 84.53734.0156 Lot 002 Block 003 of NORTHLAND PLAT FOUR 608 NORTHLAND DR
608 NORTHLAND DR
SAINT JOSEPH MN 56374
TERRES CORY R & KATHERINE
L 162.30 100.00 100.00 100.00 81.15 81.15 $7,744.14 $7,744.14 $1,244.14 $6,500.00
16 84.53734.0155 Lot 001 Block 003 of NORTHLAND PLAT FOUR 606 GUMTREE ST E
606 GUMTREE ST NE
SAINT JOSEPH MN 56374
FUSSY BRIAN
FUSSY JILL 147.00 87.25 87.25 87.25 73.50 73.50 $7,014.11 $7,014.11 $514.11 $6,500.00
17 84.53734.0208 Lot 001 Block 003 of NORTHLAND PLAT 5 612 GUMTREE ST E
612 GUMTREE ST NE
SAINT JOSEPH MN 56374 ANDERSON CALEB 79.00 79.00 79.00 $4,781.08 $4,781.08 $4,781.08
18 84.53734.0209 Lot 002 Block 003 of NORTHLAND PLAT 5 618 GUMTREE ST E
618 GUMTREE ST NE
SAINT JOSEPH MN 56374 STOVER JASON 80.05 80.05 80.05 $4,844.63 $4,844.63 $4,844.63
19 84.53734.0210 Lot 003 Block 003 of NORTHLAND PLAT 5 615 7TH AVE NE
615 7TH AVE NE
SAINT JOSEPH MN 56374
FRANK & JEAN OSENDORF
TRUST 135.37 101.96 67.69 67.69 101.96 101.96 $3,307.09 $6,170.62 $9,477.71 $2,977.71 $6,500.00
20 84.53734.0211 Lot 004 Block 003 of NORTHLAND PLAT 5 621 FIR ST E
611 7TH AVE NE
SAINT JOSEPH MN 56374
GOTTWALT BRADLEY
GOTTWALT LYNN M 106.61 99.71 53.31 99.71 153.02 $7,476.31 $7,476.31 $976.31 $6,500.00
21 84.53734.0212 Lot 005 Block 003 of NORTHLAND PLAT 5 615 FIR ST E
615 FIR ST NE
SAINT JOSEPH MN 56374 SAUERS MASELAN 75.00 75.00 75.00 $3,664.50 $3,664.50 $3,664.50
22 84.53734.0213 Lot 006 Block 003 of NORTHLAND PLAT 5 611 FIR ST E
611 FIR ST NE
SAINT JOSEPH MN 56374
MILLER THOMAS J
MILLER KATIE L 75.00 75.00 75.00 $3,664.50 $3,664.50 $3,664.50
23 84.53734.0207 Lot 037 Block 002 of NORTHLAND PLAT 5 612 FIR ST E
612 FIR ST NE
SAINT JOSEPH MN 56374 LYON KATHERINE A 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
24 84.53734.0206 Lot 036 Block 002 of NORTHLAND PLAT 5 616 FIR ST E
616 FIR ST NE
SAINT JOSEPH MN 56374
HOLMSTROM MICHAEL C
HOLMSTROM RACHEL 80.00 80.00 80.00 $3,908.80 $3,908.80 $3,908.80
25 84.53734.0205 Lot 035 Block 002 of NORTHLAND PLAT 5 622 FIR ST E
622 FIR ST NE
SAINT JOSEPH MN 56374
JEFFREY L PETERSON REV
TRUST 74.18 74.18 74.18 $3,624.43 $3,624.43 $3,624.43
26 84.53734.0204 Lot 034 Block 002 of NORTHLAND PLAT 5 626 FIR ST E
626 FIR ST NE
SAINT JOSEPH MN 56374
SMITH DAVID A
SMITH RUTH E 66.64 66.64 66.64 $3,256.03 $3,256.03 $3,256.03
27 84.53734.0203 Lot 033 Block 002 of NORTHLAND PLAT 5 602 7TH AVE NE
602 7TH AVE NE
SAINT JOSEPH MN 56374
LOWMAN JAY E
WEAR CINDY G 52.55 52.55 52.55 $2,567.59 $2,567.59 $2,567.59
28 84.53734.0202 Lot 032 Block 002 of NORTHLAND PLAT 5 606 7TH AVE NE
606 7TH AVE NE
SAINT JOSEPH MN 56374
OLSON AARON K
OLSON JULIA C 50.33 50.33 50.33 $2,459.12 $2,459.12 $2,459.12
29 84.53734.0201 Lot 031 Block 002 of NORTHLAND PLAT 5 610 7TH AVE NE
610 7TH AVE NE
SAINT JOSEPH MN 56374
PATTON MICHAEL K & RAMONA
M 84.34 84.34 84.34 $4,120.85 $4,120.85 $4,120.85
30 84.53734.0200 Lot 030 Block 002 of NORTHLAND PLAT 5 616 7TH AVE NE
616 7TH AVE NE
SAINT JOSEPH MN 56374 NYDEEN LANCE E & PAMELA J 75.23 75.23 75.23 $3,675.74 $3,675.74 $3,675.74
31 84.53734.0199 Lot 029 Block 002 of NORTHLAND PLAT 5 620 7TH AVE NE
620 7TH AVE NE
SAINT JOSEPH MN 56374 MEHL EVAN L 73.88 73.88 73.88 $3,609.78 $3,609.78 $3,609.78
32 84.53734.0198 Lot 028 Block 002 of NORTHLAND PLAT 5 626 GUMTREE CT
626 GUMTREE CT NE
SAINT JOSEPH MN 56374
JAGIELSKI MICHAEL J &
LOUELLA 98.14 98.14 98.14 $4,795.12 $4,795.12 $4,795.12
33 84.53734.0197 Lot 027 Block 002 of NORTHLAND PLAT 5 630 GUMTREE CT
630 GUMTREE CT NE
SAINT JOSEPH MN 56374
HOSCH LAWRENCE J
KNEBEL HOLLY L 55.14 94.00 94.00 $4,592.84 $4,592.84 $4,592.84
34 84.53734.0196 Lot 026 Block 002 of NORTHLAND PLAT 5 632 GUMTREE CT
632 GUMTREE CT NE
SAINT JOSEPH MN 56374 HELLERMANN ADAM 45.55 112.00 112.00 $5,472.32 $5,472.32 $5,472.32
35 84.53734.0195 Lot 025 Block 002 of NORTHLAND PLAT 5 633 GUMTREE CT
633 GUMTREE CT NE
SAINT JOSEPH MN 56374 MAAG WILLIAM & JANET 55.08 104.00 104.00 $5,081.44 $5,081.44 $5,081.44
36 84.53734.0194 Lot 024 Block 002 of NORTHLAND PLAT 5 629 GUMTREE CT
629 GUMTREE CT NE
SAINT JOSEPH MN 56374
SEDERQUIST KAITLIN M
SEDERQUIST RYAN S 79.36 93.00 93.00 $4,543.98 $4,543.98 $4,543.98
37 84.53734.0193 Lot 023 Block 002 of NORTHLAND PLAT 5 623 GUMTREE ST E
623 GUMTREE ST NE
SAINT JOSEPH MN 56374 KROELLS AMANDA L 126.20 85.00 85.00 $5,144.20 $5,144.20 $5,144.20
38 84.53734.0192 Lot 022 Block 002 of NORTHLAND PLAT 5 617 GUMTREE ST E
617 GUMTREE ST NE
SAINT JOSEPH MN 56374
OLSON JOSHUA D
OLSON DANIELLE J 91.65 78.00 78.00 $4,720.56 $4,720.56 $4,720.56
39 84.53734.0191 Lot 021 Block 002 of NORTHLAND PLAT 5 611 GUMTREE ST E
611 GUMTREE ST NE
SAINT JOSEPH MN 56374
SCHNETTLER ADAM M
SCHNETTLER AMANDA L 75.00 75.00 75.00 $4,539.00 $4,539.00 $4,539.00
40 84.53734.0190 Lot 020 Block 002 of NORTHLAND PLAT 5 704 NORTHLAND DR
605 GUMTREE ST NE
SAINT JOSEPH MN 56374 EIYNCK BRYCE L 97.00 97.00 97.00 $5,870.44 $5,870.44 $5,870.44
F:\CITY\shared\2023 Street Improvements\[Final Assessment Worksheet-CITY.xlsx]Loso's TOTALS 1205.95 3167.76 243.44 2534.35 2777.79 783.26 783.26 420.76 75.94 496.70 $131,098.71 $36,070.53 $34,284.18 $201,453.42 $11,473.74 $189,979.67
SPECIAL ASSESSEMENTS
PLATTED ADBUTTING
FOOTAGE
32' MILL AND PAVE
ADJUSTED FOOTAGE
36' MILL AND PAVE
ADJUSTED FOOTAGE
40' MILL AND PAVE
ADJUSTED FOOTAGE
TOTAL
ASSESSMENT
SUBTOTAL
ASSESSMENT
CITY
SUBSIDY
Page 2
FINAL SPECIAL ASSESSMENT ROLL 6/12/2023
2023 STREET IMPROVEMENTS SANITARY SEWER $8,988.00 /EA
BLOCK II ALLEYS 16' WIDE RECONSTRUCT (100%)$129.45 /LF
SANITARY
SEWER
LINE NO.PARCEL ID NO.PROPERTY DESCRIPTION PROPERTY ADDRESS MAILING ADDRESS OWNER OF RECORD
LONG
SIDE
SHORT
SIDE
SERVICE
UNITS
LONG
SIDE
SHORT
SIDE
ASSESSED
FOOTAGE
SANITARY
SEWER 16' RECON
1 84.53886.0000
Lot 001 Block 011 of TOWNSITE OF ST JOSEPH
N2/3 OF LOTS 1-2-3 BLK 11 120 2ND AVE NW
21366 WESTBROOK DR
COLD SPRING MN 56320
MOSCHO ERIC E &
AIMMEEJEAN N 132.00 132.00 132.00 $17,087.40 $17,087.40 $6,527.40 $10,560.00
2 84.53887.0000
Lot 001 Block 011 of TOWNSITE OF ST JOSEPH
S1/3 OF LOTS 1-2 & 3 BLK 11 114 2ND AVE NW
32219 NOB HILL DR
AVON MN 56310
JAMES & WILMA SCHWEGEL
TRUST 198.00 66.00 99.00 66.00 165.00 $21,359.25 $21,359.25 $8,159.25 $13,200.00
3 84.53891.0000
Lot 007 Block 011 of TOWNSITE OF ST JOSEPH
LOT 7 & W10' OF LOT 8 BLK 11 106 2ND AVE NW
12255 KARLYN RD
SAINT JOSEPH MN 56374 SCHMIDT ALEXANDER E 76.00 1.00 76.00 76.00 $8,988.00 $9,838.20 $18,826.20 $9,746.20 $9,080.00
4 84.53892.0000
Lot 008 Block 011 of TOWNSITE OF ST JOSEPH
WLY 36' OF ELY 56' LOT 8 BLK 11 310 ASH ST W
12255 KARLYN RD
SAINT JOSEPH MN 56374 SCHMIDT ALEXANDER E 36.00 36.00 36.00 $4,660.20 $4,660.20 $1,780.20 $2,880.00
5 84.53893.0000
Lot 008 Block 011 of TOWNSITE OF ST JOSEPH
E20' OF LOT 8 & ALL LOT 9 BLK 11 117 ASH ST W
PO BOX 1185
SAINT CLOUD MN 56302
EHLEN PROPERTIES LMTD
PRTNSHP 198.00 86.00 1.00 99.00 86.00 185.00 $8,988.00 $23,948.25 $32,936.25 $15,136.25 $17,800.00
6 84.53894.0000 Lot 010 Block 011 of TOWNSITE OF ST JOSEPH 109 ASH ST W
1598 BLACKBERRY CIR
SARTELL MN 56377 COLLEGE & MINNESOTA LLC 198.00 66.00 1.00 99.00 66.00 165.00 $8,988.00 $21,359.25 $30,347.25 $14,647.25 $15,700.00
7 84.53895.0000
Lot 011 Block 011 of TOWNSITE OF ST JOSEPH
LOT 11 LESS N72' OF E10' & S 126' OF W10' OF LT 12 BLK 11 105 ASH ST W
1598 BLACKBERRY CIR
SARTELL MN 56377 COLLEGE & MINNESOTA LLC 56.00 1.00 56.00 56.00 $8,988.00 $7,249.20 $16,237.20 $9,257.20 $6,980.00
8 84.53897.0000
Lot 011 Block 011 of TOWNSITE OF ST JOSEPH
N72' OF LOT 12 & N72' OF E10 OF LOT 11 BLK 11 111 1ST AVE NW
31 1ST AVE NE
SAINT JOSEPH MN 56374 WALZ DANIEL 76.00 1.00 76.00 76.00 $8,988.00 $9,838.20 $18,826.20 $10,246.20 $8,580.00
9 84.53890.0000
Lot 005 Block 011 of TOWNSITE OF ST JOSEPH
S66' OF E54' OF LOT 5 & S66' LOT 6 BLK 11 110 BIRCH ST W
416 REES ST
PLAYA DEL REY CA 90293 LOSO STEFFAN TRUST 132.00 66.00 66.00 $8,543.70 $8,543.70 $3,263.70 $5,280.00
10 84.53888.0000
Lot 004 Block 011 of TOWNSITE OF ST JOSEPH
LOTS 4-5 & 6 LESS THE S66' OF E54' OF LOT 5 & LESS THE S66' 123 1ST AVE NW
PO BOX 64142
SAINT PAUL MN 55164 LOSO FAMILY REV TRUST 198.00 66.00 99.00 99.00 $12,815.55 $12,815.55 $4,895.55 $7,920.00
F:\CITY\shared\2023 Street Improvements\[Final Assessment Worksheet-CITY.xlsx]Loso's TOTALS 924.00 660.00 5.00 462.00 594.00 1056.00 $44,940.00 $136,699.20 $181,639.20 $83,659.20 $97,980.00
TOTAL
ASSESSMENT
SPECIAL
ASSESSEMENTS
PLATTED ADBUTTING
FOOTAGE
16' WIDE RECONSTRUCT
ADJUSTED FOOTAGE
SUBTOTAL
ASSESSMENT
CITY
SUBSIDY
Page 3
STAFF MEMO
Prepared by:
Lori Bartlett, Finance Director
Meeting Date:
6-27-23
☐ Consent Agenda Item
☒ Regular Agenda Item
Agenda Item #
6
Reviewed by:
Item:
2022 Audited Financial Statements
ACTION REQUESTED
Consider acceptance of the 2022 audited financial statements.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
None
PREVIOUS COUNCIL ACTION
Council hired BerganKDV to perform a financial audit of the city’s 2022 financial statements. This is the
third year of the three-year engagement letter.
REFERENCE AND BACKGROUND
Annually MN State Statute and the MN Office of the State Auditor requires the City to have an
independent financial audit completed. The audit consists of reviewing internal controls, policies,
adherence to GASB, test compliance of MN Statutes and compliance with federal grants. BerganKDV
began audit work in the end of 2022 through June 2023 for the 2022 audited financial statements.
The Partner, Nancy Schulzetenberg, and Manager, Janel Bitzan, met with David and Lori to report their
findings on June 21st. Either Nancy or Janel will be present at the council meeting to report their
findings to the city council, staff and public. The only finding they reported is a lack of segregation of
accounting duties as in past years. Due to costs to hire enough employees to eliminate this finding,
council and staff have agreed to monitor policies and internal controls to mitigate misstatements and
misappropriation of city funds.
The audited financial statements can be cumbersome to read. Although the entire report is important
for the users of the statements, the Management Discussion and Analysis (MD&A) on pages 5-22
provide a nice overview of the financial highlights for 2022 and the economic factors that will affect the
upcoming years. City staff prepared the MD&A analysis. The report included with the financial
statements titled “Communications Letter” is an analysis of the financial conditions of the City and was
prepared by BerganKDV.
BUDGET IMPACT
Informational only
STAFF RECOMMENDED ACTION
Accept the 2022 audited financial statements.
SUPPORTING DATA/ATTACHMENTS
2022 Audited Financial Statements
2022 Communications Letter
City of St. Joseph
Communications Letter
December 31, 2022
City of St. Joseph
Table of Contents
Report on Matters Identified as a Result of
the Audit of the Basic Financial Statements 1
Material Weakness 3
Required Communication 5
Financial Analysis 9
Emerging Issues 23
1
Report on Matters Identified as a Result of
the Audit of the Basic Financial Statements
Honorable Mayor, Members
of the City Council and Management
City of St. Joseph
St. Joseph, Minnesota
In planning and performing our audit of the basic financial statements of the governmental activities,
business-type activities, each major fund, and the aggregate remaining fund information of the City of
St. Joseph, Minnesota, as of and for the year ended December 31, 2022, 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, 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 over financial reporting.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
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
have not been identified. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to error, or fraud may occur and not
be detected by such controls. However, as discussed below, we identified a certain deficiency in internal
control that we consider to be a material weakness.
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 over financial reporting, such that there is a reasonable
possibility that a material misstatement of the City's basic financial statements will not be prevented, or
detected and corrected, on a timely basis. A reasonable possibility exists when the likelihood of an event
occurring is either reasonably possible or probable as defined as follows:
Reasonably possible. The chance of the future event or events occurring is more than remote but
less than likely.
Probable. The future event or events are likely to occur.
The material weakness identified is stated within this letter.
2
The accompanying memorandum also includes financial analysis provided as a basis for discussion. The
matters discussed herein were considered by us during our audit and they do not modify the opinion
expressed in our Independent Auditor's Report dated June 21, 2023, on such statements.
This communication, which is an integral part of our audit, is intended solely for the information and use
of the City Council, management, others within the City and state oversight agencies and is not intended
to be, and should not be, used by anyone other than these specified parties.
St. Cloud, Minnesota
June 21, 2023
3
City of St. Joseph
Material Weakness
Improve Segregation of Accounting Duties
Adequate segregation of accounting duties is in place when the four areas of a transaction have been
separated: authorization, custody, recording, and reconciliation.
As part of this year's audit, we reviewed the City's documentation of its internal control over significant
areas including: cash receipts, cash disbursements, capital assets, payroll, and utility billing. The lack of
adequate segregation of accounting duties could adversely affect the City's ability to initiate, record,
process, and report financial data consistent with the assertions of management in the financial
statements. Some of the areas in which we noticed a lack of segregation or an overlap in duties are as
follows:
Cash Receipts
The Administrative assistant opens mail, enters cash and checks into the point-of-sale system, and
reconcile daily receipts. The Account Technician sends late notices/calculates penalties. The Police
Clerk will accept cash/checks as well. A police officer takes the deposit to the bank.
Cash Disbursements
The Finance Director also is an authorized signer and has access to the Mayor's electronic signature.
At year-end, the Finance Director reconciles and records contracts payable. The City Administrator
reviews and approves checks for payment.
Capital Assets
The Finance Director records, processes, reconciles, and posts journal entries related to capital
assets. Department heads review their listing for accuracy.
Payroll
The Finance Technician reconciles employee's time, processes, and posts payroll, generates a payroll
report, distributes paystubs to employees, and posts the journal entries related to payroll. In addition,
this same employee reconciles payroll accruals. The Finance Director reviews payroll reports and
time off balances and calculates compensated absences balances for the audit.
Utility Billing
The Account Technician enters new accounts into the utility billing system and uploads meter
readings via interfacing with electronic readers. The Account Technician enters any rate changes to
the system. The Account Technician can enter manual adjustments, calculates, and enters final bills,
prints, and mails utility bills. The Administrative Assistant reconciles receipts to billed amounts and
enters receipts batches. Finance Director approves adjustments and rate changes are approved by
councils. The Account Technician has the ability to adjust bills without detection.
Cash Reconciliation and Access
The Finance Director performs the above noted responsibilities, while also reconciling cash, and
generating manual journal entries.
In addition, during our audit, we noted a prior period adjustment that was necessary to restate the
beginning balances of CIP between the Enterprise Funds.
4
City of St. Joseph
Material Weakness
Improve Segregation of Accounting Duties (Continued)
We recommend management and the City Council review the above deficiencies and improve
segregation of accounting duties where possible to build upon the control environment. We also
recommend the City closely follow its internal control plan and follow through with the control
activities that have been designed.
5
City of St. Joseph
Required Communication
We have audited the basic financial statements of the governmental activities, business-type activities,
each major fund, and the aggregate remaining fund information of the City as of and for the year ended
December 31, 2022. Professional standards require that we advise you of the following matters related
to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter, our responsibility, as described by professional standards, is
to form and express opinions about whether the basic financial statements prepared by management with
your oversight are presented fairly, in all material respects, in accordance with accounting principles
generally accepted in the United States of America. Our audit of the basic financial statements does not
relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the basic financial statements are free of
material misstatement. An audit of the basic financial statements includes consideration of internal
control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of
the City solely for the purpose of determining our audit procedures and not to provide any assurance
concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgement, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures for the purpose of identifying other matters to
communicate to you.
Generally accepted accounting principles provide for certain Required Supplementary Information (RSI)
to supplement the basic financial statements. Our responsibility with respect to the RSI, which
supplements the basic financial statements, is to apply certain limited procedures in accordance with
generally accepted auditing standards. However, the RSI was not audited and, because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance,
we do not express an opinion or provide any assurance on the RSI.
Our responsibility for the supplementary information accompanying the basic financial statements, as
described by professional standards, is to evaluate the presentation of the supplementary information in
relation to the basic financial statements as a whole and to report on whether the supplementary
information is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Our Responsibility in Relation to Government Auditing Standards
As communicated in our engagement letter, part of obtaining reasonable assurance about whether the
basic financial statements are free of material misstatement, we performed tests of the City's compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of basic financial statement amounts.
However, the objective of our tests was not to provide an opinion on compliance with such provisions.
6
City of St. Joseph
Required Communication
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied
with all relevant ethical requirements regarding independence.
Significant Risks Identified
We have identified the following significant risks of material misstatement:
Misappropriation of assets and segregation of duties - If duties cannot be appropriately segregated
within the accounting and finance department, there is a risk of unauthorized disbursements being made
from the City and adjustments being made to the City's general ledger. In addition,generally, this results
in less review taking place as transactions are recorded in the financial statements.
Management override of internal control - Management override of internal control is considered a risk
in substantially all engagements as management may be incentivized to produce better results.
Improper revenue recognition - Revenue recognition is considered a fraud risk on substantially all
engagements as it generally has a significant impact on the results of the governments operations. In
addition, complexities exist surrounding the calculation and recording of various revenue sources.
Qualitative Aspects of the City's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in the notes to basic financial statements.
There have been no initial selection of accounting policies and no changes to significant accounting
policies or their application during 2022. No matters have come to our attention that would require us,
under professional standards, to inform you about (1) the methods used to account for significant
unusual transactions and (2) the effect of significant accounting policies in controversial or emerging
areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the basic financial statements prepared by management and
are based on management's current judgements. Those judgements are normally based on knowledge
and experience about past and current events and assumptions about future events. Certain accounting
estimates are particularly sensitive because of their significance to the basic financial statements and
because of the possibility that future events affecting them may differ markedly from management's
current judgements. The most sensitive estimates affecting the basic financial statements relate to:
Depreciation – The City is currently depreciating its capital assets over their estimated useful
lives, as determined by management, using the straight-line method.
7
City of St. Joseph
Required Communication
Qualitative Aspects of the City's Significant Accounting Practices (Continued)
Significant Accounting Estimates (Continued)
Net Pension Liability, Deferred Outflows of Resources Related to Pensions and Deferred Inflows
of Resources Related to Pensions – These balances are based on an allocation by the pension
plans using estimates based on contributions.
We evaluated the key factors and assumptions used to develop the accounting estimates and determined
that they are reasonable in relation to the basic financial statements taken as a whole and in relation to
the applicable opinion units.
Financial Statement Disclosures
Certain basic financial statement disclosures involve significant judgment and are particularly sensitive
because of their significance to financial statement users. The basic financial statement disclosures are
neutral, consistent, and clear.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of
the audit.
Uncorrected and Corrected Misstatements
For the purposes of this communication, professional standards require us to accumulate all known
and likely misstatements identified during the audit, other than those that we believe are trivial, and
communicate them to the appropriate level of management. Further, professional standards require
us to also communicate the effects of uncorrected misstatements related to prior periods on the
relevant classes of transactions, account balances or disclosures, and the basic financial statements
taken as a whole and each applicable opinion unit.
We identified the following uncorrected misstatement of the basic financial statements. Management has
determined its effect is immaterial, both individually and in the aggregate, to the basic financial
statements taken as a whole and each opinion unit.
Prepaid expenditures
Lease receivable and deferred inflow
Lease liability and leased asset
In addition, professional standards require us to communicate to you all material, corrected
misstatements that were brought to the attention of management as a result of our audit procedures.
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 basic financial statements taken as a
whole.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a
matter, whether or not resolved to our satisfaction, concerning a basic financial accounting,
reporting, or auditing matter, which could be significant to the City's basic financial statements or
the auditor's report. No such disagreements arose during the course of our audit.
8
City of St. Joseph
Required Communication
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters. Management has informed us that, and to our knowledge, there were no
consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, significant events or
transactions that occurred during the year, operating and regulatory conditions affecting the City, and
operational plans and strategies that may affect the risks of material misstatement. None of the matters
discussed resulted in a condition to our retention as the City's auditor.
Other Information Included in Annual Reports
Pursuant to professional standards, our responsibility as auditors for other information, whether financial
or nonfinancial, included in the City's annual reports, does not extend beyond the information identified
in the audit report, and we are not required to perform any procedures to corroborate such other
information.
We applied certain limited procedures to the RSI 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.
With respect to the supplementary information accompanying the financial statements, 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 basic financial statements or to the basic financial statements
themselves.
9
City of St. Joseph
Financial Analysis
The following pages provide graphic representation of select data pertaining to the financial position and
operations of the City for the past five years. Our analysis of each graph is presented to provide a basis
for discussion of past performance and how implementing certain changes may enhance future
performance. We suggest you view each graph and document if our analysis is consistent with yours. A
subsequent discussion of this information should be useful for planning purposes.
Tax Capacity, Levy, and Rates
The taxable tax capacity increased at a similar rate to the increase in the certified levy in 2022, causing
the tax rate to increase to 56.52%.
$3,565,731
$3,851,786
$5,200,249
$5,538,243
$5,802,836
$2,191,595
$2,343,285
$2,893,011 $2,957,875
$3,279,949
61.46%60.84%
55.63%53.41%
56.52%
99.66%99.41%99.93%97.74%97.96%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
$5,500,000
$6,000,000
2018 2019 2020 2021 2022
Tax Capacity, Levy, and Rates
Taxable Tax Capacity Certified Tax Levy Tax Rate Collection Rate
10
City of St. Joseph
Financial Analysis
General Fund
For the year ended December 31, 2022, General Fund expenditures exceeded revenue by $28,313. In
addition to this, the fund had transfers in of $69,391 from other funds and transfers out of $259,064 to
other funds resulting in a decrease in the General Fund balance of $172,938. Of the City's General Fund
balance at December 31, 2022, $1,779,231 was assigned for specific expenditures, such as the elections,
police forfeiture, severance pay and capital outlay reserves. The City had $10,729 of its fund balance
restricted for PEG access. The City also has $17,500 of its fund balance in nonspendable form as the
funds have already been spent on prepaid professional services. The unassigned portion of the fund
balance, which includes monies set aside for working capital, totaled $2,208,806 and represents
approximately six months of 2022 General Fund expenditures. The City's target General Fund balance is
to maintain working capital, a portion of the unassigned balance, in the amount of four to six months of
the next year's budgeted expenditures of the General Fund.
The graphs below and on the following page show the City's General Fund balance and the General
Fund revenues and expenditures for the last five years.
$1,468,385 $1,631,900 $1,707,066 $2,082,669 $2,208,806
$620,425 $625,428 $648,556
$267,501 $321,091 $453,843 $2,098,456 $1,779,231
$5,051 $10,729
$24,560 $9 $4,490 $3,274 $17,500
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2018 2019 2020 2021 2022
General Fund Balance
Unassigned Assigned for Fire Fund Assigned for Other Purposes Restricted Nonspendable
11
City of St. Joseph
Financial Analysis
General Fund (Continued)
2018 2019 2020 2021 2022
Total Revenues $3,527,345 $3,711,600 $4,945,235 $4,283,181 $4,538,185
Total Expenditures 3,220,573 3,429,162 4,473,613 3,676,354 4,566,498
Fund Balance 2,385,922 2,578,428 2,813,955 4,189,204 4,016,266
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
General Fund
During the year ended December 31, 2022, the City's General Fund revenues increased $255,004, or
5.9%, from 2021, while expenditures increased by $890,144, or 24.2%. These changes in revenues and
expenditures will be discussed by source and function, respectively, on the following pages.
As discussed earlier, fund balance did decrease $172,938 from 2021 to 2022. Fund balance has
increased $1,630,344 or 68.3% since 2018.
12
City of St. Joseph
Financial Analysis
General Fund Revenues
2018 2019 2020 2021 2022
Taxes 1,291,758$ 1,431,366$ 1,935,881$ 2,115,511$ 2,102,942$
Special assessments 5,341 3,558 3,389 57,840 4,891
Franchise fees 131,212 134,704 132,991 137,382 140,259
Licenses and permits 357,138 255,953 178,139 151,811 307,357
Intergovernmental 1,227,716 1,230,507 2,102,263 1,570,692 1,883,220
Charges for services 396,183 406,047 430,989 98,913 53,057
Fines and forfeitures 58,620 52,289 43,317 87,381 78,924
Miscellaneous 59,377 197,176 118,266 63,651 (32,465)
Total Revenues 3,527,345$ 3,711,600$ 4,945,235$ 4,283,181$ 4,538,185$
As discussed earlier, the City's revenue increased $255,004 from 2021 to 2022. Intergovernmental
revenues accounted for the largest increase from the prior year with an increase of $312,528, or 19.9%.
Most of this increase was from federal grants largely related to ARPA funding in 2022. The City also
received an increase of $155,546 or 103% in licenses and permits revenue due in part to hailstorm
damage resulting in increased building permits also, permits were issued in 2022 for 32 new homes.
Miscellaneous revenue account decreased by $96,116 from 2021. This decrease was primarily due to
market value adjustments relating to investments. All other revenues stayed consistent with the prior
year.
Total revenues have grown $1,010,840 since 2018, an increase of 28.7%. The largest variances between
the types of revenue over the five-year period have been the increases in property taxes and
intergovernmental revenues while charges for services and miscellaneous revenue decreased. Other
revenues have stayed relatively consistent over that timeframe.
The pie charts on the following page show the General Fund sources of revenues for 2022 and 2021 as a
percentage of total revenues. The allocation of sources of revenue fluctuates minimally from year-to-
year. Intergovernmental revenue and taxes account for the two largest components of revenues, each
making up 41.5% and 46.3% of the total in 2022. The total of these two categories accounts for
approximately 86% and 88% of General Fund revenues for 2022 and 2021, respectively.
13
City of St. Joseph
Financial Analysis
General Fund Revenues (Continued)
Taxes
46%
Special
assessments
1%
Franchise fees
3%
Licenses and
permits
7%Intergovernmental
41%
Charges for
services
1%Fines and
forfeitures
2%
Miscellaneous
-1%
2022 General Fund Revenues
Taxes
49%
Special
assesments
1%
Franchise fees
3%
Licenses and
permits
4%
Intergovernmental
37%
Charges for
services
2%Fines and
forfeitures
2%
Miscellaneous
2%
2021 General Fund Revenues
14
City of St. Joseph
Financial Analysis
General Fund Expenditures
2018 2019 2020 2021 2022
General government 741,374$ 815,401$ 1,020,077$ 997,357$ 1,078,866$
Public safety 1,606,132 1,625,599 1,741,056 1,657,557 1,701,616
Public works 440,811 486,341 457,226 443,748 716,500
Culture and recreation 331,861 397,204 429,568 362,548 574,640
Economic Development - - 201,414 - -
Capital outlay 100,395 104,617 624,272 215,144 494,876
Total Expenditures 3,220,573 3,429,162 4,473,613 3,676,354 4,566,498
As discussed earlier, General Fund expenditures increased $890,144, or 24.2%. The most significant
increase in expenditures were in capital outlay, public works, and culture and recreation. Capital outlay
increased $279,732, or 130% from 2021. This increase was due to the City purchasing a new Rescue
Van, various equipment for police and fire, a shop remodel, and other miscellaneous items. The city had
significantly fewer purchases in 2021. Public works expenditures increased by $272,752. This increase
was primarily due to the City hiring additional staff. Culture and recreation expenditures increased by
$212,092. This increase was primarily due to the capital campaign service contract for the community
center, demoing bleachers and fencing in Millstream Park.
The pie charts on the following page show the General Fund expenditures by function for 2022 and
2011 as a percentage of total expenditures. The allocation of expenditures by function vary from year to
year. Public safety remains the largest component of General Fund expenditures, representing 37% of
total expenditures, down from 45% in 2021. Capital outlay increased from 6% to 11% from 2021 to
2022.
15
City of St. Joseph
Financial Analysis
General Fund Expenditures (Continued)
General
government
24%
Public safety
37%
Public works
16%
Culture and
recreation
12%
Capital outlay
11%
2022 General Fund Expenditures
General
government
27%
Public safety
45%
Public works
12%
Culture and
recreation
10%
Capital outlay
6%
2021 General Fund Expenditures
16
City of St. Joseph
Financial Analysis
General Fund Budget
The table below illustrates the General Fund budget and actual for 2022 revenues and expenditures by
function.
Actual
Amounts
Revenues
Taxes 2,099,595$ 2,099,595$ 2,102,942$ 3,347$
Special assessments 4,000 4,000 4,891 891
Franchise fees 138,200 138,200 140,259 2,059
Licenses and permits 185,720 185,720 307,357 121,637
Intergovernmental 1,867,364 1,867,364 1,883,220 15,856
Charges for services 43,785 43,785 53,057 9,272
Fines and forfeitures 66,000 66,000 78,924 12,924
Miscellaneous 71,525 71,525 (32,465) (103,990)
Total revenues 4,476,189 4,476,189 4,538,185 61,996
Expenditures
General government 1,013,035 1,013,035 1,078,866 65,831
Public safety 1,786,140 1,786,140 1,701,616 (84,524)
Public works 676,855 694,355 716,500 22,145
Culture and recreation 776,205 778,705 574,640 (204,065)
Capital outlay 488,800 468,800 494,876 26,076
Total expenditures 4,741,035 4,741,035 4,566,498 (174,537)
Excess of receipts over
(under) disbursements (264,846) (264,846) (28,313) 236,533
Other Financing Sources (Uses)
Insurance recoveries - - 30,198 30,198
Sale of property 7,000 7,000 14,850 7,850
Transfers in 13,340 13,340 69,391 56,051
Transfers out - - (259,064) (259,064)
Total other financing sources 13,340 20,340 (144,625) (164,965)
Net change in fund balance (251,506)$ (244,506)$ (172,938)$ 71,568$
Final
Budget
Variance
With Final
Budget -
Over (under)
Original
Budget
17
City of St. Joseph
Financial Analysis
General Fund Budget (Continued)
The City's had no updates to their original budget throughout the year. Budgeted revenues were $4.5
million, budgeted expenditures were $4.74 million, and other financing sources of $20,340. General
fund revenues were over budget by $61,996. Licenses and permits revenues coming in over budget by
$121,637 offset by Miscellaneous revenue coming in under budget of $103,990 represented the majority
of this variance. The Licenses and permits came in over budget due mostly to the City not budgeting for
the increase in building construction. The Miscellaneous revenue came in under budget due mostly to
investment losses. Other revenues were in line with the budget.
Total expenditures were under budget by $174,537. Culture and recreational had the largest budget
variance, being $204,065 under budget in 2022. This variance was due to the City expenditures relating
to Capital Campaign service contract which came in under budget. Public Safety was under budget
$84,524, this is due to staffing changes throughout the year the resulted in cost savings as well as
budgeting for family coverage for all full time positions. Other areas were consistent with budgeted
amounts.
Enterprise Funds
Enterprise funds are used to account for operations financed and operated in a manner, similar to private
business enterprises, where the City intends the cost of providing goods or services to the public be
financed or recovered primarily through user charges. The City's Enterprise Funds include the Water,
Sanitary Sewer, Refuse, Storm Water, and Street Light Utility Funds.
Water Fund
The Water Fund showed operating income in all five years presented. Operating revenues increased
$8,874, or 0.8%, from 2021 to 2022. Operating expenses increased $175,814, or 19.8%, from 2021 to
2022 due to an increase in utility expenses to operate water plants, wage increases, additional supply
costs at both treatment plants, hydrant repair, heater and air unit maintenance, professional fees relating
to pump repair and replacement, Resilience assessment, and financial rate modeling software.
Operations produced operating income of $100,815. With the exclusion of $455,628 in depreciation
expense, the Fund experienced operating income of $556,443. However, depreciation should be
considered as a true expense in operations, as most equipment and facilities will eventually need
upgrades or replacement. The operations of the Water Fund covered 100% of depreciation expense.
In addition to the operating revenues and expenses of the Water Fund, there were net non-operating
expenses of $34,348, which is comprised of investment income, loss on disposal of asset, and interest
expenses, offset by amortization of bond premium and other income. The operating and non-operating
activities along with capital contributions, and transfers resulted in an increase in net position of
$346,372, resulting in a net position of $11,747,633 at December 31, 2022. The cash and investments
balance at December 31, 2022, totaled $1,313,076, an increase of $22,153.
18
City of St. Joseph
Financial Analysis
Water Fund (Continued)
2018 2019 2020 2021 2022
Operating Revenues $1,030,342 $1,001,282 $1,126,425 $1,153,777 $1,162,651
Operating Expenses 877,947 843,267 885,076 886,023 1,061,837
Operating Income with Depreciation 152,395 158,015 241,349 267,754 100,815
Operating Income without Depreciation 588,720 590,721 683,204 727,537 556,443
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Water Fund
Sanitary Sewer Fund
Operating revenues increased $18,828 or 1.3%, from 2021 to 2022, while operating expenses decreased
$2,001, or 0.2%. Revenues increased due to an increase in usage in 2022. Operating Expenses were
consistent with the prior year.
The Sewer Fund produced operating income for all five years presented. Due to the nature and cost of
the Sewer Fund's assets, it is difficult to establish sewer rates sufficient to cover replacement of the
assets represented by depreciation expense. Ideally, sewer revenues should cover all operating expenses,
including depreciation.
19
City of St. Joseph
Financial Analysis
Sanitary Sewer Fund (Continued)
The graph below indicates the Sewer Fund did generate operating income and covered 100% of
depreciation each year presented.
In addition to the operating revenues and expenses of the Sewer Fund, there were net non-operating
expenses of $121,383, which was mostly comprised of interest expense and losses on investments.
Capital contributions and transfers along with the operating and non-operating activities resulted in an
increase in net position of $356,859, resulting in a net position of $11,606,177 at December 31, 2022.
The cash balance at December 31, 2022, totaled $2,605,129, an increase of $1,832,232.
2018 2019 2020 2021 2022
Operating Revenues $1,387,894 $1,393,095 $1,345,104 $1,395,818 $1,414,646
Operating Expenses 942,953 992,085 995,506 1,133,200 1,131,199
Operating Income (Loss) with
Depreciation 444,941 401,010 349,598 262,618 283,447
Operating Income without Depreciation 937,945 894,443 884,242 814,306 833,803
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Sanitary Sewer Fund
20
City of St. Joseph
Financial Analysis
Refuse Fund
The following graph displays selected financial data for the Refuse Fund for the past five years. The
Fund consistently showed an operating loss each year. Operating revenues increased $25,569, or 7.1%,
while operating expenses increased $22,241, or 6%, from 2021 to 2022. The increase in revenues was
due to an increase in rates in 2022. Expenses increased due to increased fees from their waste collection
company. These changes resulted in an operating loss of $5,769 for 2022. The Fund produced an
operating loss of $5,654 when depreciation is not considered, thus, the fund is not covering any
depreciation expense.
In addition to the operating activities of the fund, there were non-operating expenses of $5,565 which
are mostly comprised of investment income losses. Transfers along with operating and non-operating
activities resulted in a decrease in net position of $11,404. The cash balance decreased $11,017 in 2022
and totaled $196,647 at December 31, 2022.
2018 2019 2020 2021 2022
Operating Revenues $280,981 $297,500 $314,623 $359,675 $385,244
Operating Expenses 307,941 319,085 315,482 368,772 391,013
Operating Income (Loss) with Depreciation (26,960) (21,585) (859) (9,097) (5,769)
Operating Income (Loss) without Depreciation (20,454) (15,079) (744) (8,982) (5,654)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Refuse Fund
21
City of St. Joseph
Financial Analysis
Storm Water Fund
The Storm Water Fund showed operating losses in the previous four years presented with the current
year generating operating income. Operating revenues increased $85,012, or 46.1%, from 2021 to 2022,
due to an increase in rates. Operating expenses remained consistent with the prior year.
The Storm Water Fund produced an operating income of $54,332 with depreciation and an operating
income of $209,829 without depreciation expense. The operations of the Storm Water Fund covered
100% of depreciation expense in 2022. The Storm Water Fund also had net nonoperating revenues of
$15,085, capital contributions totaling $46,210, and transfers out totaling $53,365. Fund activity resulted
in an increase in net position of $62,262. The cash balance increased $95,460 in 2022 and totaled
$360,488 at December 31, 2022.
We recommend the City continue to monitor rates as well as operating expenses to ensure the Fund's
profitability in the future.
2018 2019 2020 2021 2022
Operating Revenues $80,710 $167,456 $147,231 $184,603 $269,615
Operating Expenses 210,302 198,628 191,197 216,472 215,283
Operating (Loss) with Depreciation (129,592) (31,172) (43,966) (31,869) 54,332
Operating Income (Loss) without
Depreciation (23,778) 77,696 94,657 123,629 209,829
$(150,000)
$(100,000)
$(50,000)
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Storm Water Fund
22
City of St. Joseph
Financial Analysis
Street Light Utility
The Street Light Utility Fund was opened during 2013 to track activity relating to the street light utility.
The Street Light Utility Fund showed an operating income for the fifth year in a row. Operating
revenues stayed consistent with the prior year, increasing only $519 from 2021 to 2022. Operating
expenses increased $1,911 also staying consistent with 2021.
The Street Light Utility Fund produced operating income of $16,578 The fund also reported non-
operating expenses including investment income losses offset by special assessments, and other income
totaling $2,760. Operating income along with non-operating expenses resulted in an increase in net
position of $13,818. The cash balance increased $26,340 in 2022 and totaled $103,370 at December 31,
2022.
2018 2019 2020 2021 2022
Operating Revenues $76,625 $80,534 $82,418 $85,201 $85,720
Operating Expenses 70,890 56,127 66,156 67,231 69,142
Operating Income (Loss)5,735 24,407 16,262 17,970 16,578
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
Street Light Utility
23
City of St. Joseph
Emerging Issues
Executive Summary
The following is an executive summary of financial and business related updates to assist you in staying
current on emerging issues in accounting and finance. This summary will give you a preview of the new
standards that have been recently issued and what is on the horizon for the near future. The most recent
and significant updates include:
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements
GASB has issued GASB Statement No. 96 relating to accounting and financial reporting for
subscription-based information technology arrangements. The requirements of this Statement
will improve financial reporting by establishing a definition for subscription-based information
technology arrangements and providing uniform guidance for accounting and financial reporting
for transactions that meet that definition.
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections
GASB has issued GASB Statement No. 100 relating to accounting and financial reporting for
accounting changes and error corrections. The requirements of this Statement will improve the
clarity of the accounting and financial reporting requirements for accounting changes and error
corrections, which will result in greater consistency in application in practice. In turn, more
understandable, reliable, relevant, consistent, and comparable information will be provided to
financial statement users for making decisions or assessing accountability.
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences
GASB has issued GASB Statement No. 101 relating to accounting and financial reporting for
compensated absences. The unified recognition and measurement model in this Statement will
result in a liability for compensated absences that more appropriately reflects when a government
incurs an obligation. In addition, the model can be applied consistently to any type of
compensated absence and will eliminate potential comparability issues between governments
that offer different types of leave.
The following is an extensive summary of the current updates. As your continued business partner, we
are committed to keeping you informed of new and emerging issues. We are happy to discuss this issue
with you further and its applicability to your City.
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements
This Statement provides guidance on the accounting and financial reporting for subscription-based
information technology arrangements (SBITAs) for government end users (governments). This
Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset –
an intangible asset – and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires
note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the
standards established in Statement No. 87, Leases, as amended.
24
City of St. Joseph
Emerging Issues
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements (Continued)
A SBITA is defined as a contract that conveys control of the right to use another party's (a SBITA
vendor's) information technology (IT) software, alone or in combination with tangible capital assets (the
underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like
transaction.
The subscription term includes the period during which a government has a noncancellable right to use
the underlying IT assets. The subscription term also includes periods covered by an option to extend (if
it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate
(if it is reasonably certain that the government or SBITA vendor will not exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription asset – an
intangible asset – and a corresponding subscription liability. A government should recognize the
subscription liability at the commencement of the subscription term, – which is when the subscription
asset is placed into service. The subscription liability should be initially measured at the present value of
subscription payments expected to be made during the subscription term. Future subscription payments
should be discounted using the interest rate the SBITA vendor charges the government, which may be
implicit, or the government's incremental borrowing rate if the interest rate is not readily determinable.
A government should recognize amortization of the discount on the subscription liability as an outflow
of resources (for example, interest expense) in subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription liability
amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and
(3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before
the commencement of the subscription term. A government should recognize amortization of the
subscription asset as an outflow of resources over the subscription term.
Activities associated with a SBITA, other than making subscription payments, should be grouped into
the following three stages, and their costs should be accounted for accordingly:
Preliminary Project Stage, including activities such as evaluating alternatives, determining
needed technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as
incurred.
Initial Implementation Stage, including all ancillary charges necessary to place the subscription
asset into service. Outlays in this stage generally should be capitalized as an addition to the
subscription asset.
Operation and Additional Implementation Stage, including activities such as subsequent
implementation activities, maintenance, and other activities for a government's ongoing
operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they
meet specific capitalization criteria.
In classifying certain outlays into the appropriate stage, the nature of the activity should be the
determining factor. Training costs should be expensed as incurred, regardless of the stage in which they
are incurred.
25
City of St. Joseph
Emerging Issues
Accounting Standard Update – GASB Statement No. 96 – Subscription-Based Information
Technology Arrangements (Continued)
If a SBITA contract contains multiple components, a government should account for each component as
a separate SBITA or nonsubscription component and allocate the contract price to the different
components. If it is not practicable to determine a best estimate for price allocation for some or all
components in the contract, a government should account for those components as a single SBITA.
This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum
possible term under the SBITA contract of 12 months (or less), including any options to extend,
regardless of their probability of being exercised. Subscription payments for short-term SBITAs should
be recognized as outflows of resources.
This Statement requires a government to disclose descriptive information about its SBITAs other than
short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other
payments not included in the measurement of a subscription liability, principal and interest requirements
for the subscription liability, and other essential information.
GASB Statement No. 96 is effective for reporting periods beginning after June 15, 2022. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62
The primary objective of this Statement is to enhance accounting and financial reporting requirements
for accounting changes and error corrections to provide more understandable, reliable, relevant,
consistent, and comparable information for making decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles, changes in accounting
estimates, and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting
principles and (2) certain changes in accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the
principle or methodology used before the change. That preferability should be based on the qualitative
characteristics of financial reporting – understandability, reliability, relevance, timeliness, consistency,
and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change
and (2) error corrections. This Statement requires that (a) changes in accounting principles and error
corrections be reported retroactively by restating prior periods, (b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in
accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a
new pronouncement in absence of specific transition provisions in the new pronouncement.
26
City of St. Joseph
Emerging Issues
Accounting Standard Update – GASB Statement No. 100 – Accounting Changes and Error
Corrections – an Amendment of GASB Statement No. 62 (Continued)
This Statement also requires that the aggregate amount of adjustments to and restatements of beginning
net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the
financial statements.
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to
beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting
principle or error correction should be presented in required supplementary information (RSI) and
supplementary information (SI). For periods that are earlier than those included in the basic financial
statements, information presented in RSI or SI should be restated for error corrections, if practicable, but
not for changes in accounting principles.
GASB Statement No. 100 is effective for reporting periods beginning after June 15, 2023. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not
been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A
liability should be recognized for leave that has not been used if (a) the leave is attributable to services
already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time
off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already
rendered when an employee has performed the services required to earn the leave. Leave that
accumulates is carried forward from the reporting period in which it is earned to a future reporting
period during which it may be used for time off or otherwise paid or settled. In estimating the leave that
is more likely than not to be used or otherwise paid or settled, a government should consider relevant
factors such as employment policies related to compensated absences and historical information about
the use or payment of compensated absences. However, leave that is more likely than not to be settled
through conversion to defined benefit postemployment benefits should not be included in a liability for
compensated absences.
27
City of St. Joseph
Emerging Issues
Accounting Standard Update – GASB Statement No. 101 – Compensated Absences (Continued)
This Statement requires that a liability for certain types of compensated absences – including parental
leave, military leave, and jury duty leave – not be recognized until the leave commences. This Statement
also requires that a liability for specific types of compensated absences not be recognized until the leave
is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used,
generally using an employee's pay rate as of the date of the financial statements. A liability for leave that
has been used but not yet paid or settled should be measured at the amount of the cash payment or
noncash settlement to be made. Certain salary-related payments that are directly and incrementally
associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus,
this Statement requires that expenditures be recognized for the amount that normally would be
liquidated with expendable available financial resources.
This Statement amends the existing requirement to disclose the gross increases and decreases in a
liability for compensated absences to allow governments to disclose only the net change in the liability
(as long as they identify it as a net change). In addition, governments are no longer required to disclose
which governmental funds typically have been used to liquidate the liability for compensated absences.
GASB Statement No. 101 is effective for reporting periods beginning after December 15, 2023. Earlier
application is encouraged.
Information provided above was obtained from www.gasb.org.
City of St. Joseph
Stearns County, Minnesota
Basic Financial Statements
December 31, 2022
(THIS PAGE LEFT BLANK INTENTIONALLY)
City of St. Joseph
Table of Contents
Elected Officials and Administration 1
Independent Auditor’s Report 2
Management’s Discussion and Analysis 5
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 26
Statement of Activities 28
Fund Financial Statements
Balance Sheet – Governmental Funds 29
Reconciliation of the Balance Sheet to the Statement of Net Position
– Governmental Funds 31
Statement of Revenues, Expenditures, and Changes in Fund Balances
– Governmental Funds 32
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities – Governmental Funds 34
Statement of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – General Fund 35
Statement of Net Position – Proprietary Funds 36
Reconciliation of the Statement of Net Position – Business-Type Activities 37
Statement of Revenues, Expenses, and Changes in Fund Net Position
– Proprietary Funds 38
Reconciliation of the Statement of Revenues, Expenses, and Changes in
Net Position – Business-Type Activities 40
Statement of Cash Flows – Proprietary Funds 41
Notes to Basic Financial Statements 44
Required Supplementary Information
Schedule of City’s Proportionate Share of Net Pension Liability General
Employees Retirement Fund 81
Schedule of City’s Proportionate Share of Net Pension Liability Public
Employees Police and Fire Retirement Fund 81
Schedule of City Contributions General Employees Retirement Fund 82
Schedule of City Contributions Public Employees Police and Fire
Retirement Fund 82
Schedule of Changes in the Net Pension Liability and Related Ratios
– Fire Relief Association 83
Schedule of City Contributions and Non-Employer Contributing Entities
– Fire Relief Association 85
Notes to Required Supplementary Information 87
City of St. Joseph
Table of Contents
Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – General Fund 95
Combining Balance Sheet – Nonmajor Governmental Funds 97
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances Nonmajor Governmental Funds 105
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 114
Minnesota Legal Compliance 116
Schedule of Finding and Response on Internal Control 117
1
City of St. Joseph
Elected Officials and Administration
December 31, 2022
Elected Officials Position Term Expires
Rick Schultz Mayor January 2023
Robert Loso Council Member January 2025
Kelly Beniek Council Member January 2025
Kevin Kluesner Council Member January 2023
Jon Hazen Council Member January 2023
Administration
Therese Haffner City Administrator Appointed
through October 2022
Jeff O'Neil Interim City Administrator Appointed
Lori Bartlett Finance Director Appointed
2
Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of St. Joseph
St. Joseph, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of City of St. Joseph, as of and for the
year ended December 31, 2022, and the related notes to the financial statements, which collectively
comprise City of St. Joseph’s basic financial statements as listed in the Table of Contents.
In our opinion, the accompanying financial statements 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 City of St. Joseph, as of December 31, 2022, and the
respective changes in financial position and, where applicable, cash flows thereof and the respective
budgetary comparison for the General Fund for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) 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 City of St. Joseph 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.
Emphasis of Matter – Implementation of GASB 87
The City has adopted new accounting guidance, Governmental Accounting Standards Board (GASB)
Statement No. 87, Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City of St. Joseph’s management is responsible for the preparation and fair presentation of the
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.
3
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 St. Joseph’s ability
to continue as a going, concern for one year 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 GAAS 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.
In performing an audit in accordance with GAAS 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 City of St. Joseph’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 City of St. Joseph’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, which follows this report letter, and Required Supplementary information as
listed in the Table of Contents be 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 GASB, 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.
4
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 of St. Joseph’s basic financial statements. The accompanying
supplementary information as listed in the Table of Contents is presented for purposes of additional
analysis 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 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 accompanying supplementary
information is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 21, 2023,
on our consideration of the City of St. Joseph’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 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 of
St. Joseph’s internal control over financial reporting and compliance.
St. Cloud, Minnesota
June 21, 2023
City of St. Joseph
Management's Discussion and Analysis
5
As management of the City of St. Joseph, we offer readers of the City of St. Joseph's financial
statements this narrative overview and analysis of the financial activities of the City of St. Joseph for the
fiscal year ended December 31, 2022.
FINANCIAL HIGHLIGHTS
Key financial highlights for 2022 include the following:
The assets and deferred outflows of resources of the City of St. Joseph exceeded its liabilities
and deferred inflows of resources at the close of the most recent fiscal year by $46,475,140. Of
this amount, $6,705,515 may be used to meet government's ongoing obligations to citizens and
creditors (unrestricted net position).
The City of St. Joseph's total net position increased by $1,230,539 from 2021 to 2022. The
individual funds with the largest increase in net position include the water and sewer funds,
resulting in over 50% of the increase in net position.
As of the close of the current fiscal year, the City of St. Joseph's governmental funds reported
combined ending fund balances of $16,715,793, an increase of $5,482,644. Of this amount
$2,191,328 is unassigned for spending at the City's discretion. The remaining balance of
$14,524,465 is set aside for specific future expenditures. The largest contributors for the increase
in fund balance include the general fund, St. Joseph Community Center/YMCA project fund and
the state collected sales tax fund. The general fund contains budgeted reserves included in the 5-
year capital planning. The community center/YMCA project issued bonds in 2022; however,
much of the construction will be completed in 2024. The state collected sales tax fund also
resulted in an increase in fund balance by $595,560 with half cent sales tax collections exceeding
expectations in 2022. This fund is included in the combined Other Governmental Funds.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$2,208,806 or 53% of the total 2023 general fund expenditure budget. The city's goal is 4-6
months of the following year expenditure budget; 2022 ended at six months working capital.
The City of St. Joseph's total long-term bonded debt increased by $3,821,803 during the current
fiscal year. The City had five debts paid in full, and issued one new debt for three projects
including the St. Joseph Community Center/YMCA, 2022 street improvements and a new
pumper/tanker fire truck..
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of St. Joseph's basic
financial statements. The City of St. Joseph's basic financial statements are comprised of three
components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the
financial statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-Wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broader overview of the City of St. Joseph's finances, in a manner similar to a
private-sector business.
City of St. Joseph
Management's Discussion and Analysis
6
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government-Wide Financial Statements. (Continued) The Statement of Net Position presents
information on all of the City of St. Joseph's assets and deferred outflows of resources and liabilities,
and deferred inflows of resources with the difference between the four 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 of St. Joseph 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 the government-wide financial statements distinguish functions of the City of St. Joseph 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 of St. Joseph include general
government, public safety, public works, economic development, culture and recreation, and interest on
long-term debt. The business-type activities of the City of St. Joseph include water, sanitary sewer,
refuse, storm water and street light utility services.
The government-wide financial statements include not only the City of St. Joseph itself (known as the
primary government), but also a legally separate Economic Development Authority. Financial
information for this component unit is blended in the financial information.
The government-wide financial statements can be found on pages 26-28 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 of St. Joseph, like
other state and local governments, utilize fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the City of St. Joseph can be divided into one of
the following two categories: governmental funds and proprietary 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.
City of St. Joseph
Management's Discussion and Analysis
7
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Governmental Funds. (Continued) 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 of 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 government-wide
governmental activities.
The City of St. Joseph maintains forty-two individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures and changes in fund balances for the general fund, G.O. industrial park bonds of 2021A
fund, G.O. tax abatement bonds of 2015B fund, and St. Joseph Community Center/YMCA project fund
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 non-major governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of St. Joseph adopts an annual appropriated budget for its general fund. A budgetary
comparison statement has been provided for this fund on page 35 to demonstrate compliance with the
budget.
The basic governmental fund financial statements can be found on pages 29-34 of this report.
Proprietary Funds. The City of St. Joseph maintains proprietary funds that are used to report the same
functions presented as business-type activities in the government-wide financial statements. The City of
St. Joseph uses proprietary funds to account for its water, sanitary sewer, refuse, storm water and street
light utility activities.
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
water, sanitary sewer, refuse, storm water and street light utility, all of which are considered to be major
funds of the City of St. Joseph. The basic proprietary fund financial statements can be found on pages
36-42 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 can be found on pages 44-79 of this report.
Other Information. The required supplementary information (pages 81-93) and supplemental
information including the combined statements referred to earlier in connection with non-major
governmental funds can be found on pages 95-112 of this report.
Comparative Data. While comparative data is not illustrated in this report, comments throughout this
narrative and overview will discuss significant changes from the prior year.
City of St. Joseph
Management's Discussion and Analysis
8
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City of St. Joseph, assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $46,475,140 at the close of the most recent fiscal year.
By far the largest portion of the City of St. Joseph's net position reflects its investment in capital assets
(e.g., land, buildings, machinery, and equipment) net accumulated depreciation, less any related debt
used to acquire those assets that is still outstanding. The City of St. Joseph utilizes these capital assets to
provide services to citizens; consequently, these assets are not available for future spending. Although,
the City of St. Joseph's investment in its capital assets is reported net of related debt, it should be noted
that the resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
2022 2021 2022 2021 2022 2021
Assets
Current and other assets 21,494,469$ 17,509,912$ 5,622,221$ 3,558,085$ 27,116,690$ 21,067,997$
Capital assets, net 19,029,339 18,078,155 33,426,247 34,346,256 52,455,586 52,424,411
Total assets 40,523,808 35,588,067 39,048,468 37,904,341 79,572,276 73,492,408
Deferred Outflows
of Resources
Deferred outflows of resources
related to pensions 2,399,691 1,366,961 114,232 147,084 2,513,923 1,514,045
Total deferred outflows 2,399,691 1,366,961 114,232 147,084 2,513,923 1,514,045
Liabilities
Current liabilities 1,332,697 1,442,095 1,708,522 213,532 3,041,219 1,655,627
Long-term liabilities 24,705,062 17,489,199 7,619,837 8,613,128 32,324,899 26,102,327
Total liabilities 26,037,759 18,931,294 9,328,359 8,826,660 35,366,118 27,757,954
Deferred Inflows
of Resources
Deferred inflows of resources
related to debt 9,515 11,895 14,623 18,140 24,138 30,035
Deferred inflows of resources
related to leases 12,402 - 111,618 - 124,020 -
Deferred inflows of resources
related to pensions 91,807 1,727,526 4,976 176,853 96,783 1,904,379
Total deferred inflows 113,724 1,739,421 131,217 194,993 244,941 1,934,414
Net Position
Net investment in
capital assets 8,714,573 7,728,613 26,286,102 26,037,429 32,233,696 30,582,502
Restricted 7,535,929 7,998,702 - - 7,535,929 7,998,702
Unrestricted 521,514 556,998 3,417,022 2,992,343 6,705,515 6,732,881
Total net position 16,772,016$ 16,284,313$ 29,703,124$ 29,029,772$ 46,475,140$ 45,314,085$
Governmental Activities Business-Type Activities Total
NET POSITION
City of St. Joseph
Management's Discussion and Analysis
9
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
An additional portion of the City of St. Joseph's net position (16%) represents resources that are subject
to external restrictions on how they may be used. The remaining balance of unrestricted net position is a
surplus of $6,705,515, or a surplus of $3,938,536 after removing the unrestricted portion of
governmental debt for enterprise assets. The surplus is largely the result of the increase in cash and
investments from unspent bond proceeds.
At the end of the current fiscal year, the City of St. Joseph is able to report positive balances in all three
categories of net position for the government as a whole, as well as for its separate business-type and
governmental activities.
Governmental Activities. The governmental activities change in net position balance increased
$487,703. The City's investment in capital assets, net related debt increased $985,960. Restricted net
position decreased $462,773. The unrestricted net position resulted in a net position of $521,514, a
decrease of $35,484 from last year. As a liquidity indicator, the cash and investment position increased
47% in 2022. The main increase is from unspent 2022A bond proceeds. The proceeds will cover costs of
a pumper/tanker fire truck in 2023 and the St. Joseph Community Center/YMCA in 2024. The bonded
debt increased in 2022 by $4,573,535 with the 2022A bond issue. The City paid off five debts in 2022,
three of which were early defeasances. The amount paid off is less than the 2022A bond issue. In
addition, GASB requires investments to be marked to current market value in the reporting year. In
2022, the market adjustment was negative and resulted in negative interest earnings of $354,466 in the
governmental activities. Interest earnings is reported as unrestricted net position.
Business-Type Activities. There was a 3% increase in the total net position for the business-type
activities. The increase is due to paying down bonds and notes, and increase in net capital assets. The
full value of the assets is netted against the bonds and notes payable. Also, plant and lines increased with
contributions from the governmental funds increasing the business-type net position $263,815. The
sewer fund received $1,449,288 from the City of Foley to purchase wastewater treatment from St.
Joseph. The reimbursement will be used in future years for sewer expansions and minimizing increases
in future sewer rates. The City of Foley plans to connect to the St. Cloud wastewater facility in 2023. At
the time of connection, St. Joseph will realize the capacity purchase from 2022. Finally, the water, sewer
and storm water funds recorded a prior period adjustment totaling $69,484. The adjustment was
necessary to properly allocate construction costs from the 2021 street and utility improvements. The
construction in progress capital contributions recorded in 2021 were overstated in the water and sewer
funds and understated in the storm water fund. The 2021 street and utility improvement project was
completed in 2022 with the depreciable assets added to plants and lines in these funds.
The graph and charts on the following pages summarize and graphically depict the changes in net
position for the governmental and business-type activities.
City of St. Joseph
Management's Discussion and Analysis
10
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Change in Net Position
2022 2021 2022 2021 2022 2021
Revenues
Program Revenues
Charges for services 732,955$ 728,965$ 3,654,802$ 3,328,001$ 4,387,757$ 4,056,966$
Operating grants and
contributions 233,771 317,714 26,677 11,529 260,448 329,243
Capital grants and
contributions 1,220,598 1,586,424 205,309 336 1,425,907 1,586,760
General Revenues
Property taxes 3,290,248 2,976,605 10 249 3,290,258 2,976,854
Tax increments 151,291 150,078 - - 151,291 150,078
Sales taxes 649,225 580,596 - - 649,225 580,596
Franchise fees 140,259 137,382 - - 140,259 137,382
Lodging taxes 15,757 9,608 - - 15,757 9,608
Miscellaneous taxes 731 2,989 - - 731 2,989
State aids 1,252,968 1,211,093 - - 1,252,968 1,211,093
Unrestricted investment earnings (354,466) 37,600 (104,018) 4,707 (458,484) 42,307
Gain on disposal of assets 35,012 - - - 35,012 -
Total revenues 7,368,349 7,739,054 3,782,780 3,344,822 11,151,129 11,083,876
Expenses
General government 1,203,531 1,139,857 - - 1,203,531 1,139,857
Public safety 2,528,353 1,922,977 - - 2,528,353 1,922,977
Public works 1,590,794 1,464,510 - - 1,590,794 1,464,510
Economic development 271,353 326,642 - - 271,353 326,642
Culture and recreation 843,718 1,742,825 - - 843,718 1,742,825
Interest on long-term debt 500,353 386,579 - - 500,353 386,579
Water - - 1,085,920 1,011,714 1,085,920 1,011,714
Sanitary sewer - - 1,221,130 1,230,161 1,221,130 1,230,161
Refuse - - 391,013 368,772 391,013 368,772
Storm water - - 215,283 216,472 215,283 216,472
Street light utility - - 69,142 67,231 69,142 67,231
Total expenses 6,938,102 6,983,390 2,982,488 2,894,350 9,920,590 9,877,740
Increase (decrease) in net position
before transfers 430,247 755,664 800,292 450,472 1,230,539 1,206,136
Transfers 57,456 (1,145,619) (57,456) 1,145,619 - -
Change in net position 487,703 (389,955) 742,836 1,596,091 1,230,539 1,206,136
Net Position
Net position - beginning 16,284,313 16,674,268 29,029,772 27,433,681 45,314,085 44,107,949
Prior period adjustment - - (69,484) - (69,484) -
Net position - beginning restated 16,284,313 16,674,268 28,960,288 27,433,681 45,244,601 44,107,949
Net position - ending 16,772,016$ 16,284,313$ 29,703,124$ 29,029,772$ 46,475,140$ 45,314,085$
Governmental Activities Business-Type Activities Total
City of St. Joseph
Management's Discussion and Analysis
11
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
General
Government
Public Safety Public Works Economic
Development
Culture and
Recreation
Interest on Long‐
Term Debt
PROGRAM REVENUES AND EXPENSES
GOVERNMENTAL ACTIVITIES
Revenues Expenses
General Government
3%
Public Safety
12%
Public Works
13%
Economic Development
1%
Culture and Recreation
1%
General Revenues
70%
REVENUES BY SOURCE ‐GOVERNMENTAL ACTIVITIES
City of St. Joseph
Management's Discussion and Analysis
12
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Water Sanitary Sewer Refuse Storm Water Street Light Utility
PROGRAM REVENUES AND EXPENSES
BUSINESS‐TYPE ACTIVITIES
Revenues Expenses
Storm Water
8%
Street Light Utility
2%
Refuse
10%
Water
37%
General Revenues
‐3%
Sanitary Sewer
40%
REVENUES BY SOURCE ‐BUSINESS‐TYPE ACTIVITIES
City of St. Joseph
Management's Discussion and Analysis
13
FINANCIAL ANALYSIS OF THE CITY'S FUNDS AT THE FUND LEVEL
Governmental Funds. The financial performance of the City of St. Joseph as a whole is reflected in its
governmental funds as well. As the City completed the fiscal year 2022, its governmental funds reported
a combined fund balance of $16,715,793, an increase of $5,482,644 from 2021. Revenues for the City's
governmental funds were $8,632,942, while expenditures were $10,974,648. The excess of expenditures
over revenues is largely attributed to the early defeasance of the 2015B G.O. tax abatement bonds and
construction costs relating to the 2022 street improvements. The improvements are paid mainly from
bond proceeds that are reported as other financing sources. After adding other financing sources and
uses, the net change in fund balance resulted in the increase mainly from 2022A bond proceeds. By
removing the 2022 construction fund, governmental revenues exceeded expenditures by $5,482,644.
The major funds will be discussed further below. Other governmental non-major funds ended the year
with a $825,387 increase in fund balances, and a decrease of $1,196,984 before other financing sources.
A couple non-major funds to recognize are the G.O. improvement bonds of 2010B and 2015A, and state
collected sales tax fund. The bond funds were called early with available cash saving future interest
payments. The state collected sales tax fund received $649,225 in local option sales tax revenues in
2022. The sales tax is used for projects approved by state statute and voted on by referendum in the
community. The revenues are reserved for future projects such as the East Park development and
community center. Current projects expended with local option sales tax includes the community
center/YMCA bonds and the Field Street bonds. The 2021 and 2022 street improvement projects
completed most of their project expenditures in 2022 resulting in a reduction of fund balances.
A summary of financial highlights for each major governmental fund follows.
General Fund
The general fund is the chief operating fund of the City of St. Joseph. At the end of the current fiscal
year, unassigned fund balance of the general fund was $2,208,806, an increase of $126,137. As a
measure of the general fund's liquidity, it may be useful to compare both unassigned fund balance to
total fund expenditures. Unassigned fund balance represents 53% (6.3 months) working capital and 47%
(5.6 months) compared to the budgeted 2022 expenditures. The City Council has adopted a financial
policy which includes a goal to maintain the general fund working capital fund balance equal to 4-6
months of expenditures. The excess unassigned fund balance can be attributed to budgeted and unspent
5-year capital budget reserves, budgeting conservatively for grants and aids, higher than anticipated
building and development fees. General fund revenues exceeded budgeted amounts by $61,996. The
largest variance came from licensing and permitting revenues. Development and building permit fees are
budgeted conservatively. In 2022, the city issued 1,087 building permits. In a typical year, the city issues
about 300 commercial and residential permits. The city experienced a hail storm in spring 2022 resulting
in several re-shingling and re-siding permits. Development was also better than anticipated with new
homes, commercial and redevelopment permits. Investment income shows an unrealized loss on
investments held to maturity. The unrealized loss is a function of rising interest rates. Interest receipts
were less than the unrealized losses reported. The income is under budget by $148,653.
General fund expenditures were under budget by $174,537. The City of St. Joseph established a five-
year capital plan where funds were set aside each year for future purchases. The capital outlay
City of St. Joseph
Management's Discussion and Analysis
14
FINANCIAL ANALYSIS OF THE CITY'S FUNDS AT THE FUND LEVEL (CONTINUED)
General Fund (Continued)
expenditures will report over or under budget each year depending upon when capital equipment is
purchased. In 2022 total capital outlay reported over-spent by $26,076. In addition, general government
expenditures reported over budget by $37,105. As staffing policies were reviewed, the addition of a full-
time Administrative Assistant was added in September 2022. There also was staff turnover in this
category in 2022 with the City Administrator and Finance Technician resigning. An interim City
Administrator was hired in October 2022 and a gap of employment of three months for the Finance
Technician position. The culture and recreation category under-spent its operational budget by
$204,065. The City of St. Joseph contracted with Kinetic for the community center capital campaign.
Most of the contract was shown in the 2022 budget but will extend through 2023.
The general fund budget also included an estimate for employee severance payments in streets and
parks. The only severance payments came from the police and administrative departments for a police
sergeant who retired and City Administrator who resigned in 2022. The result in streets and parks will
reflect budget savings, police and administrative expenditures will show over-expended. A large
difference in all general fund programs is the health insurance budget. The City of St. Joseph budgets for
family premiums even though some employees opt for single or no coverage through the City's plan.
The difference in the budget to actual is transferred internally to the employee retirement reserve fund.
As a result of the prudent financial policies of the City, the general fund remained stable.
The schedule below presents a summary of general fund revenues and expenditures.
December 31, December 31, Increase Percent
Revenues 2022 2021 (Decrease) Change
Taxes and franchise fees 2,243,201$ 2,252,893$ (9,692)$ 0%
Special assessment 4,891 57,840 (52,949) -92%
Licenses and permits 307,357 151,811 155,546 102%
Intergovernmental 1,883,220 1,570,692 312,528 20%
Charges for services 53,057 98,913 (45,856) -46%
Fines and forfeitures 78,924 87,381 (8,457) -10%
Miscellaneous (32,465) 63,651 (96,116) -151%
Total General fund revenue 4,538,185$ 4,283,181$ 255,004$ 6%
December 31, December 31, Increase Percent
Expenditures 2022 2021 (Decrease) Change
General government 1,159,390$ 1,083,252$ 76,138$ 7%
Public safety 2,004,358 1,750,717 253,641 14%
Public works 827,687 466,073 361,614 78%
Culture and recreation 575,063 376,312 198,751 53%
Total General fund expenditures 4,566,498$ 3,676,354$ 890,144$ 24%
City of St. Joseph
Management's Discussion and Analysis
15
FINANCIAL ANALYSIS OF THE CITY'S FUNDS AT THE FUND LEVEL (CONTINUED)
General Fund Budgetary Highlights
Over the course of the year, the City of St. Joseph made one amendment to the annual operating budget.
Historically, the City has minimal budget amendments during the budget year. The amendment was to
adjusting budget line items between streets and parks. The overall general fund budget did not change,
just reallocated between line items in these two functions. A description of the budget to actual
variances were described on the previous two pages.
Actual revenues were $61,996 more than budgeted.
Actual expenditures were $174,537 less than budget.
After other financing sources and uses, the general fund ended the year with a $172,938
reduction in the fund balance. This is better than budgeted projections. The City anticipated
spending down $230,231 in reserved fund balances. This is a positive budget variance of
$57,293.
Proprietary Funds. The City of St. Joseph's proprietary fund statements provide the same type of
information found in the government-wide financial statements, but in more detail. The unrestricted net
position of the proprietary funds increased $767,907 overall. The following five paragraphs provide a
brief financial overview of each major proprietary fund.
Water Enterprise Fund
The water fund is used to account for the operations of the city's water utility. In 2022, the water fund's
net position increased $346,372. Before transfers and capital contributions, the operating income
reported a $100,815 surplus. The change in net position includes depreciation of $455,628. The water
operating revenues are covering 100% of the depreciation. Bonded debt payments in the water fund
totaled $615,506. Debt payments are covered by water rates, debt levy, water connection and trunk fees,
and transfers from the sewer fund. Water rates have been incrementally increased over the past few
years to cover operational costs as well as water related debt. The current rates are sufficient for the
water fund operations and debt costs. In 2022, the water fund made the final debt payment for the 2017B
water revenue bonds that paid for upgrades to water treatment plant #1. Water revenues are set aside for
future improvements such as required maintenance on the current water tower and adding a second
water tower to the utility system. Water connections can dip in down economic times. Having water
reserves can level rate adjustments and help weather difficult economic times. Connections in 2022 were
up with new development. Rates are reviewed annually as part of the budget adoption.
Sanitary Sewer Enterprise Fund
The sanitary sewer fund is used to account for the operations of the city's sanitary sewer utility. In 2022,
the sanitary sewer fund's net position increased $356,859 and realized $283,447 in operating income.
User fees are covering 100% of the depreciation, and 100% of the non-operating revenues and expenses.
As a contract user of the St. Cloud Wastewater Treatment Facility, St. Joseph is obligated to pay a
portion of the costs to maintain the plant and conveyance system. St. Joseph issued four notes with the
City of St. Cloud for various facility and conveyance projects. The debt costs are paid with reserved
Sewer Access Charges (SAC), trunk fees and sewer usage rates. The development fees through 2022
assisted in covering debt costs. As a result, rate increases have slowed down to a more average increase
(1-3%) after a few years of significant user rate increases. Rates are reviewed annually as part of the
budget adoption. The City of Foley purchased sewer treatment capacity from St. Joseph in 2022.
City of St. Joseph
Management's Discussion and Analysis
16
FINANCIAL ANALYSIS OF THE CITY'S FUNDS AT THE FUND LEVEL (CONTINUED)
Refuse Enterprise Fund
The refuse fund is used to account for the contract services to provide residential refuse, recycling, and
compost services. The refuse fund ended 2022 with a net position of $219,490, a decrease of $11,404.
The city council opted to under-fund the costs to operate the refuse and compost programs by using
unused net position to cover the difference for a few years to offset other utility user fee increases. The
overall net position is healthy and was able to manage the lower increases in user fees.
Storm Water Enterprise Fund
The storm water fund is used to account for the operations of the city's storm water utility. In 2022, the
storm water fund's net position increased $62,262; an increase of $69,417 before capital contributions
and transfers. The storm water fund realized an operating income of $54,332, covering 100%
depreciation. In 2018 the city council opted to reduce the storm water usage rates by half in order to
accommodate increases in other utilities. The rates are being stepped up to get closer to covering costs
with 2022 the first year showing operational and non-operational solvency. Nominal increases are
expected in the future to continue covering operating and nonoperating costs. In addition, the storm
water fund received $46,210 in capital contributions to assist in the increased net position of the fund.
Street Light Utility Enterprise Fund
The street light utility fund is used to account for the operations of the city's street lighting. As of
December 31, 2022, the street light utility fund's change in net position increased $13,818, and an
operating income of $16,578. The city council kept rates the same since charges are covering expenses
and the fund balance is healthy. The street light utility fund also covers expenses for holiday lights on
the street lights and other utility poles along Minnesota Street and College Avenue. Overall, the net
position of the street light utility fund has grown to $108,259 since splitting from the general fund in
2013.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The capital assets include land, intangible assets, buildings, improvements, machinery and equipment,
infrastructure, easements, plant and lines, sewer rights, and construction in progress. The City of St.
Joseph's net capital assets for its governmental and business-type activities as of December 31, 2022,
amounts to $52,455,586 (net of accumulated depreciation), an increase of $31,175. The slight increase
in net capital assets was attributed to street and utility improvements with only replacing a few old
infrastructure assets. The cost of the infrastructure several decades ago was much less than current costs;
therefore, the City will realize increases in capital asset values. In addition, construction is progress
decreased $1,315,075. Construction in progress is not depreciated. When completed, depreciation is
netted with asset costs, decreasing the net capital assets. Net investment in capital assets increased
$1,651,195 with the asset additions.
City of St. Joseph
Management's Discussion and Analysis
17
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Capital Assets (Continued)
The table below is a summary of the City of St. Joseph's capital assets.
Additional information on the City of St. Joseph's capital assets can be found in Note 6 beginning on
page 57 of this report. Total depreciation expense for 2022 was $2,585,545.
Long-Term Liabilities
The City of St. Joseph's long-term liabilities includes bonded debt, notes payables, compensated
absences, and net pension liability. Overall, the long-term liabilities totaled $32,324,899 as of
December 31, 2022, an increase of $6,222,572.
The City of St. Joseph issued one debt (three parts) and paid five debts in full. The debt issuance amount
was larger than the amounts defeased. The bonds and notes liabilities increased $3,404,853. The 2022A
bonds totaled $7,405,000. The final principal paid in the five debts paid in full amounted to $1,898,000.
A large portion of the 2022A debt issue is a portion of debt used for the future St. Joseph Community
Center/YMCA. Of the debts paid in full, the 2015B G.O. tax abatement bonds were defeased early with
the sell proceeds of Colts Academy from 2021. The call date on the 2015B debt was December 1, 2022.
At the end of the current fiscal year, the City of St. Joseph had total net bonded debt outstanding of
$23,752,383. Of this amount, $20,601,913 comprises debt backed by the full faith and credit of the
government. The remainder of the City of St. Joseph's debt represents bonds and notes secured by
specified revenue sources (i.e., utility bonds). Other long-term debt includes compensated absences
payable and net pension liabilities.
2022 2021 2022 2021 2022 2021
Land 762,197$ 762,197$ 377,882$ 377,882$ 1,140,079$ 1,140,079$
Easements 331,093 200,085 67,915 67,915 399,008 268,000
Construction in progress 1,329,872 1,333,706 187,548 1,498,789 1,517,420 2,832,495
Improvements 1,411,545 1,377,030 289,760 289,760 1,701,305 1,666,790
Infrastructure 27,912,714 26,027,162 - - 27,912,714 26,027,162
Buildings 7,299,059 7,299,059 8,797,686 8,797,686 16,096,745 16,096,745
Intangible assets 200,000 200,000 - - 200,000 200,000
Plant and lines - - 28,460,768 27,068,783 28,460,768 27,068,783
Sewer rights - - 10,977,565 10,977,565 10,977,565 10,977,565
Machinery and equipment 4,668,429 4,441,111 1,150,595 1,143,827 5,819,024 5,584,938
Less: accumulated
depreciation (24,885,570) (23,562,195) (16,883,472) (15,875,951) (41,769,042) (39,438,146)
Total net capital assets 19,029,339$ 18,078,155$ 33,426,247$ 34,346,256$ 52,455,586$ 52,424,411$
Governmental Activities Business-Type Activities Total
CAPITAL ASSETS
City of St. Joseph
Management's Discussion and Analysis
18
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Long-Term Liabilities (Continued)
Compensated absences decreased $35,172 in 2022. The City had one tenured employee retire and the
City Administrator resigned in 2022. Both employees received a pay out of their unused accrued
compensated absences. The sergeant replacement was promoted at a lower wage and has lower
accumulated accruals. The City Administrator was not replaced until 2023. The City did add two full-
time positions in 2022. The employees did not accrue many compensated absence hours in 2022.
Net pension liability accounts for the City's portion of the Public Employees Retirement Association of
Minnesota (PERA). As per Minnesota Statutes, the City is required to participate in the PERA program.
The City's share of the liability fluctuates each year based on law changes and funding levels. For 2022,
the net pension liability increased $2,852,891.
An illustration of the city's long-term liabilities is included in the table below.
Increase Percent
2022 2021 (Decrease) Change
Governmental Activities
General obligation bonds 4,753,056$ 4,577,278$ 175,778$ 4%
General obligation special assessment bonds 9,332,397 10,268,071 (935,674) -9%
General obligation abatement bonds 6,516,460 1,183,029 5,333,431 451%
Compensated absences payable 479,191 529,304 (50,113) -9%
Net pension liability 3,623,958 931,517 2,692,441 289%
Total governmental activities 24,705,062$ 17,489,199$ 7,215,863$ 41%
Increase Percent
2022 2021 (Decrease) Change
Business-Type Activities
General obligation revenue bonds 3,150,470$ 3,902,202$ (751,732)$ -19%
Notes payable 3,989,675 4,406,625 (416,950) -9%
Compensated absences payable 130,183 115,242 14,941 13%
Net penion liability 349,509 189,059 160,450 85%
Total business-type activities 7,619,837$ 8,613,128$ (993,291)$ -12%
OUTSTANDING LONG-TERM LIABILITIES
The City of St. Joseph issued $620,000 general obligation special assessment bonds, series 2022A in fall
2022. The bonds paid for the 2022 street overlays improvements in the Graceview development, 17th
Ave SE, 18th Ave SE, portion of Baker St and 1st Ave NW.
A second part of the 2022A series bonds was issued to finance a new pumper/tanker fire truck. The
equipment certificates totaled $660,000.
The City issued $6,125,000 general obligation tax abatement bonds, series 2022A to construct the St
Joseph Community Center/YMCA.
City of St. Joseph
Management's Discussion and Analysis
19
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Long-Term Liabilities (Continued)
In spring 2021 the City of St. Joseph sold Colts Academy. The building had an outstanding debt at the
time of the sale that is not callable until December 1, 2022. The City placed the sales proceeds and
remaining portion of local option sales tax in an escrow account to pay in full the general obligation
abatement bonds, series 2015B on the call date. The early defeasance will result in an interest savings of
$143,588.
The City of St. Joseph maintained their bond rating AA-/Stable from S&P Global on the 2022A bond
issue and reaffirmed their AA-/Stable rating on their previous bond ratings. The report stated St. Joseph
has maintained a healthy financial performance including four consecutive years of positive operation,
ample budgetary flexibility in line with fund balance policy, and very strong liquidity with total
governmental available cash after adjusting or unspent bond proceeds. S&P Global's assessment reflects
the City's access to a broad and diverse MSA population, strong financial management, adequate budget
performance, very strong budgetary flexibility, and very strong liquidity. The debt and contingent
liabilities of the City were rated weak with high debt service fixed costs, but rapid amortization, with
83% of debt scheduled to be retired in 10 years.
Minnesota Statutes limit the amount of net general obligation debt a governmental entity may issue to
3% of its taxable market value. Net general obligation debt is debt solely paid for, with limited
exceptions, by ad valorem taxes. The current debt limitation for the City of St. Joseph is $15,958,257
which significantly exceeds the outstanding pure general obligation debt of $5,002,000.
Additional information on the City's long-term liabilities can be found in Note 7 beginning on page 59
of this report.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The past few years have been exciting in the City of St. Joseph after several years of contracting
economies from the 2008 Great Recession. After several years of declining market values and slow
development, the City's taxable market value increased 18% the past five years, 6% in 2022 alone, and
development has been encouraging. As a result of improved conditions, the City has been able to keep a
stable tax rate while maintaining service levels.
In 2020, the United States and around the world felt the economic impact of the COVID-19 virus
pandemic. The United States, State of Minnesota and the City of St. Joseph declared public health
emergencies to respond to the pandemic. Several business sectors were closed or significantly reduced
operations to support the COVID-19 response efforts. The US and world markets were affected. In
2020, the President of the United States signed into law the Community Reinvestment Fund (CRF)
COVID-19 to assist communities, businesses, and Americans with the impact of the pandemic. The City
of St. Joseph received $551,340 in the Coronavirus Aid, Relief, and Economic Security (CARES) Act
that was included in the CRF funding. The City of St. Joseph used the CARES funds to add necessary
equipment to improve public health and safety and provided grants to small businesses negatively
impacted by COVID-19.
City of St. Joseph
Management's Discussion and Analysis
20
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES (CONTINUED)
In addition, Stearns County provided $145,164 of their CARES funds to St. Joseph small businesses.
The St. Joseph city council opted to put some projects and purchases on hold to ensure city financial
health could weather the economic vulnerabilities of the pandemic.
In 2021, The President signed the American Rescue Plan Act (ARPA) where direct funding to
municipalities was available. The City of St. Joseph received $804,890 between 2021 and 2022. As of
December 31, 2022, the City of St. Joseph spent $474,426 grant dollars on the main server upgrades,
finance software, surveillance cameras, technology updates and cellular meters. The City has until
December 31, 2024, to spend the remaining ARPA grant dollars.
In 2022, thirty-six new single-family and townhome permits were issued, along with new commercial
construction for Obbink Distillery and Bad Habit Brewery expansion permits. In addition, 86
commercial remodel and improvement projects, and 1,001 residential improvement permits were issued
in 2022. An average year sees around 300 building permits issued; 2022 was unusually high for new
construction and repairs due to a spring 2022 hail storm. College & Minnesota LLC, a developer,
purchased a vacant two-story downtown building and remodeled into ground-level commercial retail
space with an above level residential unit. Hudson & Company who leases the retail spaces has stated
their St. Joseph store performs the best out of the three stores they operate in different communities.
College & Minnesota LLC continues to invest significantly in St. Joseph. They purchased a vacant city
owned garage and an abutting building in downtown known as the old fire hall/police station from the
City of St. Joseph. The buildings are currently renovated into retail spaces for two boutiques. College &
Minnesota, LLC also purchased a few single-family homes in the downtown area and plan to convert
them to additional commercial uses in the downtown. A single-family home near the new boutiques
offers yoga and homeopathic rejuvenation. Another home is currently under construction for the
addition of Kensington Bank in St. Joseph. In the past three years, new construction as well as
remodels/additions and repairs added over $54 million in market value for the City of St. Joseph.
In addition to new construction, current structures have impacted the net tax capacity. The sale prices
have increased along with the assessors estimated market values for existing properties. To stay in
compliance with Minnesota Statutes, the sales price ration indicated the need to increase existing market
values. This combined with the new buildings; market values increased 17% for the 2023 taxable market
values.
City of St. Joseph
Management's Discussion and Analysis
21
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES (CONTINUED)
As stated, single-family residential construction included thirty-six new homes built in 2022. Nationally
and in Minnesota, the housing market is improving. In the City of St. Joseph, two developers recently
expanded their developments to provide 34 lots in three subdivisions. In addition, the Country Manor
Senior Living Campus development began construction of single-family patio homes in their first phase
of development. The first phase includes ten detached patio home lots in which seven homes have been
constructed, and the remaining three lots have been purchased by Berscheid Builders, LLC. Berscheid
Builders, LLC purchased the abutting Outlot in the Country Manor Senior Living Campus subdivision
which has been preliminary platted for 30 single-family patio homes. Country Manor plans two market
rate apartments on the north side of their planned unit development. The apartments are planned for
2023 and 2024 construction years. St. Joseph is fortunate to have a very low foreclosure rate. In fact,
homes that become available for sale do not stay on the market for an extended period of time.
The City of St. Joseph anticipates industrial development in Northland Business Center, a new Industrial
Park that was completed in 2021. The City was awarded a $1,245,000 Business Development Public
Infrastructure (BDPI) grant from the Minnesota Department of Employment and Economic
Development (MN DEED) to assist with costs for public streets and utilities to create shovel ready
industrial lots. Construction of the public improvements began in 2019 and includes 26 lots. The
majority of lots within the new industrial park are one to two acres in size. There is the ability to
combine or subdivide lots to adjust sizes to accommodate development needs. In 2021, the first
development began with on a 10-acre parcel for Trobec's commercial and school bussing. In 2022, plans
were submitted for a 15-acre parcel for Goodin Company and a one-acre parcel for Granite City
Gymnastics. These two businesses will start construction in summer 2023. The construction fund has an
unspent balance of $227,849. The funds will be applied to expand Fir Street East to accommodate
Trobec's Bussing Company.
The City of St. Joseph submitted a bonding request for State Legislative consideration in 2020 for the
community center. The State of Minnesota included funding the $4M request for the St. Joseph
Community Center in their fall 2020 bonding bill. The City began pre-design phase and hired a firm,
Kinetic, to conduct a capital campaign for the project in 2022 through 2023. In addition, the City of St.
Joseph and the YMCA partnered for operations of the new facility. The City of St. Joseph will own the
facility and lease the operations to the St. Cloud Area Family YMCA (YMCA). The YMCA is assisting
with the design phase and capital campaign to help build the recreational facility to meet the operational
needs in the future. In 2022, the capital campaign kicked off, pre-designing by HMA Architect continues
and the City hired a construction manager, W. Gohman Construction, to oversee costs of the project.
The community center will be located east of the St. Joseph Government Center on a vacant -8.35-acre
lot owned by the City. A 45,000 square foot facility is planned for phase I with construction planned to
begin in 2024.
City of St. Joseph
Management's Discussion and Analysis
22
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES (CONTINUED)
There are exciting developments that have recently located to or are in the process of locating into the
City of St. Joseph. As mentioned above, College and Minnesota, LLC has made significant investments
into the St. Joseph community by purchasing older homes and commercial buildings in the downtown
for remodeling to convert into viable businesses, including retail, fitness/health, and food/restaurant
spaces. Bad Habit Brewing Company located in downtown St. Joseph expanded their brewery and
outdoor space, including a taproom, warehouse, outdoor patio seating. With their expansion, Bad Habit
Brewing Company refinanced their loans and paid off a loan they had with the City of Joseph in March
2022. The City was able to then defease a bond early with the proceeds. Bo Diddley's in the downtown
remodel their restaurant and added outdoor patio space. Wandering Cow Ice Cream opened their doors
in a vacant downtown space in spring 2022. A Mexican restaurant is also remodeling a space in the
downtown area for a summer 2023 opening. On the north side of the downtown, Obbink Distillery
purchased an unused warehouse space for an "out of this world" whiskey distillery. The space has a
tasting room and large outdoor gathering space. There continues to be interest and prospects reaching
out to the city staff to locate in St. Joseph. St. Joseph is becoming a travel destination place.
Besides downtown, Rivers Bend Plat 4 development adds 28 residential townhomes south of town near
the Kennedy Community School. The first few permits were issued in fall 2022. StorageLink purchased
vacant property along the Highway 75 corridor to construct climate-controlled storage units.
In 2018, the City of Foley began negotiating with the City of St. Cloud and area cities to connect to the
St. Cloud wastewater treatment facility. The sewer use agreement includes the contracted area cities of
St. Joseph, St. Cloud, St. Augusta, Waite Park, Sartell, and Sauk Rapids. The current sewer use
agreement includes Exhibit C identifying reserve treatment capacity called pooled capacity. The pooled
capacity was reserved for the contracted cities to sell capacity to each other as they approach their
capacity agreed to in the sewer use agreement before the next treatment plant expansion is completed.
The pooled capacity agreement amendment was agreed to in that allows contracted cities to sell all or a
portion of their pooled capacity to new users into the system. A new user, in this case the City of Foley,
will reimburse the cities selling their pooled capacity and take over future debt payments for their new
portion of the treatment facility. The amended pooled capacity agreement also depicts the formula to
determine the cost of becoming a new user. In April 2022 the City of St. Joseph approved selling their
pooled capacity to the City of Foley. Under the new amendment, St. Joseph received an upfront
reimbursement of $1,449,288 for their purchased debt through 2023. Once connected to the St. Cloud
wastewater treatment facility, the City of Foley will realize their portion of plant capacity debt payments
and will reduce the amount owed by the City of St. Joseph. Connection to the St. Cloud plant is
anticipated for fall 2023. Future debt savings for St. Joseph is estimated to be $773,167 from 2024
through 2030. The City of St. Joseph plans to use the reimbursements for future sewer improvements
and reduce the sewer service costs to rate payers.
With a busy year completed, 2023 is expected to be eventful as well.
City of St. Joseph
Management's Discussion and Analysis
23
REQUESTS FOR INFORMATION
The audited financial report is designed to provide a general overview of the City of St. Joseph's
finances for all those with an interest in the City's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the
Finance Director, 75 Callaway Street East, St. Joseph, MN 56374.
24
(THIS PAGE LEFT BLANK INTENTIONALLY)
25
BASIC FINANCIAL STATEMENTS
See notes to basic financial statements. 26
Governmental
Activities
Business-Type
Activities Total
Assets
Cash and investments (including cash equivalents) 16,951,422$ 4,948,034$ 21,899,456$
Cash with fiscal agent - - -
Property tax receivable 16,066 14 16,080
Accounts receivable 75,235 499,187 574,422
Interest receivable 66,058 18,489 84,547
Due from other governments 778,462 1 778,463
Notes receivable 54,802 - 54,802
Lease receivable 12,402 111,618 124,020
Special assessments receivable
Delinquent 966 1,486 2,452
Deferred 3,322,123 43,392 3,365,515
Prepaid items 17,500 - 17,500
Net pension asset 199,433 - 199,433
Capital assets not being depreciated
Land 762,197 377,882 1,140,079
Easements 331,093 67,915 399,008
Construction in progress 1,329,872 187,548 1,517,420
Capital assets being depreciated
Buildings 7,299,059 8,797,686 16,096,745
Infrastructure 27,912,714 - 27,912,714
Improvements 1,411,545 289,760 1,701,305
Intangible asset 200,000 - 200,000
Plant and lines - 28,460,768 28,460,768
Machinery and equipment 4,668,429 1,150,595 5,819,024
Sewer rights - 10,977,565 10,977,565
Less accumulated depreciation (24,885,570) (16,883,472) (41,769,042)
Capital assets (net of accumulated depreciation) 19,029,339 33,426,247 52,455,586
Total assets 40,523,808 39,048,468 79,572,276
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 2,399,691 114,232 2,513,923
Total assets and deferred outflows of resources 42,923,499$ 39,162,700$ 82,086,199$
City of St. Joseph
Statement of Net Position
December 31, 2022
See notes to basic financial statements. 27
Governmental
Activities
Business-Type
Activities Total
Liabilities
Accounts payable 201,590$ 80,859$ 282,449$
Contracts payable 526,106 - 526,106
Due to other governments 21,087 131,753 152,840
Salaries and benefits payable 135,518 7,189 142,707
Interest payable 116,806 37,798 154,604
Unearned revenue 331,590 1,450,923 1,782,513
Bond principal payable (net)
Payable within one year 1,599,000 640,000 2,239,000
Payable after one year 19,002,913 2,510,470 21,513,383
Notes payable (net)
Payable within one year - 422,538 422,538
Payable after one year - 3,567,137 3,567,137
Compensated absences payable
Payable within one year 124,240 29,213 153,453
Payable after one year 354,951 100,970 455,921
Net pension liability 3,623,958 349,509 3,973,467
Total liabilities 26,037,759 9,328,359 35,366,118
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 91,807 4,976 96,783
Deferred inflows of resources related to debt 9,515 14,623 24,138
Deferred inflows of resources related to leases 12,402 111,618 124,020
Total deferred inflows of resources 113,724 131,217 244,941
Net Position
Net investment in capital assets 8,714,573 26,286,102 32,233,696
Restricted for
Debt service 4,387,863 - 4,387,863
Other purposes 3,148,066 - 3,148,066
Unrestricted 521,514 3,417,022 6,705,515
Total net position 16,772,016 29,703,124 46,475,140
Total liabilities, deferred inflows of resources,
and net position 42,923,499$ 39,162,700$ 82,086,199$
City of St. Joseph
Statement of Net Position
December 31, 2022
See notes to basic financial statements. 28
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-Type
Activities Total
Governmental activities
General government 1,203,531$ 109,436$ 1,767$ 76,735$ (1,015,593)$ -$ (1,015,593)$
Public safety 2,528,353 460,961 225,719 174,849 (1,666,824) - (1,666,824)
Public works 1,590,794 54,088 - 895,722 (640,984) - (640,984)
Economic development 271,353 74,785 4,457 - (192,111) - (192,111)
Culture and recreation 843,718 33,685 1,828 73,292 (734,913) - (734,913)
Interest on long-term debt 500,353 - - - (500,353) - (500,353)
Total governmental activities 6,938,102 732,955 233,771 1,220,598 (4,750,778) - (4,750,778)
Business-type activities
Water 1,085,920 1,366,126 994 91,984 - 373,184 373,184
Sanitary sewer 1,221,130 1,548,097 556 67,115 - 394,638 394,638
Refuse 391,013 385,244 137 - - (5,632) (5,632)
Storm water 215,283 269,615 24,927 46,210 - 125,469 125,469
Street light utility 69,142 85,720 63 - - 16,641 16,641
Total business-type activities 2,982,488 3,654,802 26,677 205,309 - 904,300 904,300
Total governmental and
business-type activities 9,920,590$ 4,387,757$ 260,448$ 1,425,907$ (4,750,778) 904,300 (3,846,478)
General revenues
Property taxes 3,290,248 10 3,290,258
Tax increments 151,291 - 151,291
Sales taxes 649,225 - 649,225
Lodging taxes 15,757 - 15,757
Miscellaneous taxes 731 - 731
Franchise fees 140,259 - 140,259
State aids 1,252,968 - 1,252,968
Unrestricted investment earnings (354,466) (104,018) (458,484)
Gain on sale of assets 35,012 - 35,012
Transfers 57,456 (57,456) -
Total general revenues and transfers 5,238,481 (161,464) 5,077,017
Change in net position 487,703 742,836 1,230,539
Net position - beginning 16,284,313 29,029,772 45,314,085
Prior period adjustment - (69,484) (69,484)
Net position - beginning restated 16,284,313 28,960,288 45,244,601
Net position - ending 16,772,016$ 29,703,124$ 46,475,140$
City of St. Joseph
Statement of Activities
Year Ended December 31, 2022
and Changes in Net Position
Net (Expense) Revenue
See notes to basic financial statements. 29
Debt Service Capital Projects
General Fund
(101-110)
G.O. Industrial
Park Bonds of
2019A (308)
Community
Center/YMCA
(402)
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 4,388,209$ 93,581$ 6,124,499$ 6,714,457$ 17,320,746$
Taxes receivable - delinquent 11,469 - - 4,597 16,066
Special assessments receivable
Delinquent 106 - - 860 966
Deferred 241,932 1,563,156 - 1,517,035 3,322,123
Accounts receivable 64,375 - - 18,010 82,385
Interest receivable 21,650 2,356 - 42,052 66,058
Due from other funds 9,676 - - 6,800 16,476
Due from other governments 426,542 - - 351,920 778,462
Notes receivable - - - 54,802 54,802
Lease receivable 12,402 - - - 12,402
Prepaid items 17,500 - - - 17,500
Total assets 5,193,861$ 1,659,093$ 6,124,499$ 8,710,533$ 21,687,986$
Liabilities
Accounts payable 117,649$ -$ -$ 83,941$ 201,590$
Contracts payable - - - 526,106 526,106
Due to other funds - - - 16,476 16,476
Due to other governments 21,087 - - - 21,087
Salaries and benefits payable 53,091 - - 82,427 135,518
Unearned revenue 331,590 - - - 331,590
Total liabilities 523,417 - - 708,950 1,232,367
Deferred Inflows of Resources
Unavailable revenue - property taxes 11,469 - - 4,597 16,066
Unavailable revenue - special assessments 242,038 1,563,156 - 1,517,895 3,323,089
Unavailable revenue - state shared taxes 388,269 - - - 388,269
Unavailable revenue - lease receivable 12,402 - - - 12,402
Total deferred inflows of resources 654,178 1,563,156 - 1,522,492 3,739,826
Fund Balances
Nonspendable 17,500 - - - 17,500
Restricted 10,729 95,937 - 4,085,450 4,192,116
Committed - - - 480,461 480,461
Assigned 1,779,231 - 6,124,499 1,930,658 9,834,388
Unassigned 2,208,806 - - (17,478) 2,191,328
Total fund balances 4,016,266 95,937 6,124,499 6,479,091 16,715,793
Total liabilities, deferred inflows
of resources, and fund balances 5,193,861$ 1,659,093$ 6,124,499$ 8,710,533$ 21,687,986$
City of St. Joseph
Balance Sheet - Governmental Funds
December 31, 2022
30
(THIS PAGE LEFT BLANK INTENTIONALLY)
See notes to basic financial statements. 31
City of St. Joseph
Reconciliation of the Balance Sheet to
The Statement of Net Position - Governmental Funds
Total fund balances - governmental funds 16,715,793$
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported as assets in governmental funds.
Cost of capital assets 43,914,909
Less accumulated depreciation/amortization (24,885,570)
Long-term liabilities, including bonds payable, are not due and payable in the current period and,
therefore, are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of
Bond principal payable, net of premiums and discounts (20,601,913)
Deferred charges on refunding (9,515)
Compensated absences payable (479,191)
Net pension liability (3,623,958)
Delinquent receivables will be collected in subsequent years, but are not available soon enough
to pay for the current period's expenditures and, therefore, are deferred in the funds.
Property taxes 16,066
Special assessments 966
Other long-term assets are not available to pay for current expenditures and, therefore, are deferred
in the funds.
Deferred special assessments 3,322,123
MSA Receivable 388,269
Deferred outflows of resources and deferred inflows of resources are created as a result of various
differences related to pensions that are not recognized in the governmental funds.
Deferred inflows of resources related to pensions (91,807)
Deferred outflows of resources related to pensions 2,399,691
Net pension assets created through non-employer contributions to defined benefit pension plans
are not recognized in the governmental funds.
Fire relief net pension asset 199,433
The water access capital project fund is proprietary in nature and, therefore, included in the
business-type activities in the Statement of Net Position. (362,841)
The sewer access capital project fund is proprietary in nature and, therefore, included in the
business-type activities in the Statement of Net Position. (13,633)
Governmental funds do not report a liability for accrued interest due and payable. (116,806)
16,772,016$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total net position - governmental activities
Year Ended December 31, 2022
See notes to basic financial statements. 32
General Fund
(101-110)
G.O. Industrial
Park Bonds of
2019A (308)
G.O. Tax
Abatement
Bonds of 2015B
(353)
Revenues
Property taxes 2,102,211$ -$ -$
Tax increments - - -
Sales taxes - - -
Lodging taxes - - -
Miscellaneous taxes 731 - -
Special assessments 4,891 410,733 -
Franchise fees 140,259 - -
Licenses and permits 307,357 - -
Intergovernmental 1,883,220 - -
Charges for services 53,057 - -
Fines and forfeitures 78,924 - -
Miscellaneous
Investment income (113,653) (13,229) (2,384)
Contributions and donations 7,828 - -
Revolving loan repayments - - -
Other 73,360 - -
Total revenues 4,538,185 397,504 (2,384)
Expenditures
Current
General government 1,078,866 - -
Public safety 1,701,616 - -
Public works 716,500 - -
Culture and recreation 574,640 - -
Economic development - - -
Debt service
Principal - 220,000 1,175,000
Interest and other charges - 82,263 32,935
Capital outlay
General government 80,524 - -
Public safety 302,742 - -
Public works 111,187 - -
Culture and recreation 423 - -
Total expenditures 4,566,498 302,263 1,207,935
Excess of revenues over
(under) expenditures (28,313) 95,241 (1,210,319)
Other Financing Sources (Uses)
Insurance recoveries 30,198 - -
Sale of property 14,850 - -
Bonds issued - - -
Bond premium - - -
Transfers in 69,391 - -
Transfers out (259,064) - (177,228)
Total other financing sources (uses) (144,625) - (177,228)
Net change in fund balances (172,938) 95,241 (1,387,547)
Fund Balances
Beginning of year 4,189,204 696 1,387,547
End of year 4,016,266$ 95,937$ -$
Debt Service
City of St. Joseph
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2022
33
Capital Projects
Community
Center/YMCA
(402)
Other
Governmental
Funds
Total
Governmental
Funds
-$ 1,182,546$ 3,284,757$
- 151,291 151,291
- 649,225 649,225
- 15,757 15,757
- - 731
- 731,771 1,147,395
- - 140,259
- - 307,357
- 477,081 2,360,301
- 426,583 479,640
- - 78,924
- (241,486) (370,752)
10,000 5,997 23,825
- 69,054 69,054
- 221,818 295,178
10,000 3,689,637 8,632,942
- - 1,078,866
- 396,430 2,098,046
- - 716,500
1,282 1,207 577,129
- 269,182 269,182
- 1,759,000 3,154,000
- 507,403 622,601
- 1,952 82,476
- 373,536 676,278
- 1,466,942 1,578,129
10,049 110,969 121,441
11,331 4,886,621 10,974,648
(1,331) (1,196,984) (2,341,706)
- - 30,198
- 70,000 84,850
5,721,252 1,683,748 7,405,000
402,580 105,382 507,962
- 799,791 869,182
- (636,550) (1,072,842)
6,123,832 2,022,371 7,824,350
6,122,501 825,387 5,482,644
1,998 5,653,704 11,233,149
6,124,499$ 6,479,091$ 16,715,793$
See notes to basic financial statements. 34
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement
Total net change in fund balances - governmental funds 5,482,644$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays are reported in governmental funds as expenditures. However, in the Statement
of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 2,349,075
Capital contributions 134,781
Depreciation expense (1,423,949)
Disposal of capital assets (49,839)
Transferred to proprietary funds (58,884)
Principal payments on long-term debt are recognized as expenditures in the governmental funds
but as an increase in net position in the Statement of Activities. 3,154,000
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.
Accrued interest payable (65,559)
Amortization of bond discounts, premiums and deferred charges 187,807
Proceeds from long-term debt are recognized as an other financing source in the governmental
funds but as a decrease in net position in the Statement of Activities. (7,405,000)
The governmental funds report the effect of premiums, discounts and similar items when debt
is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. (507,962)
Compensated absence payments are recognized as paid in the governmental funds but recognized
as the expense is incurred in the Statement of Activities. 50,113
Delinquent receivables will be collected in subsequent years, but are not available soon enough to
pay for the current period's expenditures and, therefore, are not revenues in the funds.
Delinquent special assessments (257)
Delinquent property taxes 5,491
Certain revenues in the Statement of Activities that do not provide current financial resources are
not reported as revenues in the funds.
Deferred special assessments (829,163)
Notes receivable (268,981)
MSA receivable (109,565)
Governmental funds recognized pension contributions as expenditures at the time of payment
whereas the Statement of Activities factors in items related to pensions on a full accrual perspective.
Pension expense (182,120)
The water access capital project fund is proprietary in nature and, therefore, is reported with
business-type activities. 17,800
The sewer access capital project fund is proprietary in nature and, therefore, is reported with
business-type activities. 7,271
Change in net position - governmental activities 487,703$
of Activities - Governmental Funds
City of St. Joseph
Year Ended December 31, 2022
See notes to basic financial statements. 35
Original
Budget
Final
Budget
Actual
Amounts
Revenues
Property taxes 2,095,595$ 2,095,595$ 2,102,211$ 6,616$
Miscellaneous taxes 4,000 4,000 731 (3,269)
Special assessments 4,000 4,000 4,891 891
Franchise fees 138,200 138,200 140,259 2,059
Licenses and permits 185,720 185,720 307,357 121,637
Intergovernmental 1,867,364 1,867,364 1,883,220 15,856
Charges for services 43,785 43,785 53,057 9,272
Fines and forfeitures 66,000 66,000 78,924 12,924
Miscellaneous revenues
Investment income 35,000 35,000 (113,653) (148,653)
Contributions and donations 3,000 3,000 7,828 4,828
Other 33,525 33,525 73,360 39,835
Total revenues 4,476,189 4,476,189 4,538,185 61,996
Expenditures
Current
General government 1,013,035 1,013,035 1,078,866 65,831
Public safety 1,786,140 1,786,140 1,701,616 (84,524)
Public works 676,855 694,355 716,500 22,145
Culture and recreation 776,205 778,705 574,640 (204,065)
Capital outlay
General government 109,250 109,250 80,524 (28,726)
Public safety 165,550 165,550 302,742 137,192
Public works 188,500 171,000 111,187 (59,813)
Culture and recreation 25,500 23,000 423 (22,577)
Total expenditures 4,741,035 4,741,035 4,566,498 (174,537)
Excess of revenues over (under) expenditures (264,846) (264,846) (28,313) 236,533
Other Financing Sources (Uses)
Insurance recoveries - - 30,198 30,198
Sale of property 7,000 7,000 14,850 7,850
Transfers in 13,340 13,340 69,391 56,051
Transfers out - - (259,064) (259,064)
Total other financing sources (uses) 20,340 20,340 (144,625) (164,965)
Net change in fund balances (244,506)$ (244,506)$ (172,938) 71,568$
Fund Balances
Beginning of year 4,189,204
End of year 4,016,266$
Variance with
Final Budget -
Over (Under)
City of St. Joesph
Statement of Revenues, Expenditures, and
Changes in Fund Balance -
Budget and Actual - General Fund
Year Ended December 31, 2022
See notes to basic financial statements. 36
Water (601)
Sanitary Sewer
(602) Refuse (603)
Storm Water
(651)
Street Light
Utility (652) Total
Assets
Current assets
Cash and investments 1,313,076$ 2,605,129$ 196,647$ 360,488$ 103,370$ 4,578,710$
Taxes receivable - delinquent 14 - - - - 14
Special assessments receivable
Delinquent 542 574 266 72 32 1,486
Deferred 25,868 416 306 16,741 61 43,392
Accounts receivable 151,036 230,721 61,199 34,946 14,135 492,037
Interest receivable 9,425 5,829 1,015 1,753 467 18,489
Due from other governments 1 - - - - 1
Lease receivable 111,618 - - - - 111,618
Total current assets 1,611,580 2,842,669 259,433 414,000 118,065 5,245,747
Noncurrent assets
Capital assets
Land 372,941 4,941 - - - 377,882
Easements - - - 67,915 - 67,915
Construction in progress 114,549 15,197 - 57,802 - 187,548
Buildings 7,502,432 1,295,254 - - - 8,797,686
Improvements 289,760 - - - - 289,760
Plants and lines 11,568,989 9,858,368 - 7,033,411 - 28,460,768
Machinery and equipment 270,129 661,249 46,416 172,801 - 1,150,595
Sewer rights - 10,977,565 - - - 10,977,565
Total capital assets 20,118,800 22,812,574 46,416 7,331,929 - 50,309,719
Less accumulated depreciation (7,350,219) (7,407,441) (46,187) (2,079,625) - (16,883,472)
Net capital assets 12,768,581 15,405,133 229 5,252,304 - 33,426,247
Total noncurrent assets 12,768,581 15,405,133 229 5,252,304 - 33,426,247
Total assets 14,380,161 18,247,802 259,662 5,666,304 118,065 38,671,994
Deferred Outflows of Resources
Deferred outflows of resources related to pensions 51,785 48,509 3,918 8,061 1,959 114,232
Total assets and deferred outflows of resources 14,431,946$ 18,296,311$ 263,580$ 5,674,365$ 120,024$ 38,786,226$
Liabilities
Current liabilities
Accounts payable 19,327$ 28,357$ 28,134$ 458$ 4,583$ 80,859$
Due to other governments 1,243 127,966 2,234 - 310 131,753
Salaries and benefits payable 4,361 2,148 109 505 66 7,189
Interest payable 3,538 34,260 - - - 37,798
Unearned revenue 1,635 1,449,288 - - - 1,450,923
Long-term liabilities due
Within one year 523,616 566,154 547 1,160 274 1,091,751
Total current liabilities 553,720 2,208,173 31,024 2,123 5,233 2,800,273
Noncurrent liabilities
Compensated absences 62,352 62,352 1,455 3,296 728 130,183
Notes payable, net - 3,989,675 - - - 3,989,675
Bonds payable, net 2,312,286 838,184 - - - 3,150,470
Net pension liability 158,444 148,421 11,987 24,664 5,993 349,509
Less amounts due within one year (523,616) (566,154) (547) (1,160) (274) (1,091,751)
Total noncurrent liabilities 2,009,466 4,472,478 12,895 26,800 6,447 6,528,086
Total liabilities 2,563,186 6,680,651 43,919 28,923 11,680 9,328,359
Deferred Inflows of Resources
Deferred inflows of resources related to pensions 2,256 2,113 171 351 85 4,976
Deferred inflows of resources related to leases 111,618 - - - - 111,618
Deferred inflows of resources related to debt 7,253 7,370 - - - 14,623
Total deferred inflows 121,127 9,483 171 351 85 131,217
Net Position
Net investment in capital assets 10,456,295 10,577,274 229 5,252,304 - 26,286,102
Unrestricted 1,291,338 1,028,903 219,261 392,787 108,259 3,040,548
Total net position 11,747,633 11,606,177 219,490 5,645,091 108,259 29,326,650
Total liabilities, deferred inflows of resources,
14,431,946$ 18,296,311$ 263,580$ 5,674,365$ 120,024$ 38,786,226$ and net position
City of St. Joseph
Statement of Net Position - Proprietary Funds
December 31, 2022
See notes to basic financial statements. 37
City of St. Joseph
Reconciliation of the Statement
of Net Position - Business-Type Activities
December 31, 2022
Total net position - proprietary funds 29,326,650$
Amounts reported for business-type activities in the Statement of Net Position are different because:
The water access capital project fund is proprietary in nature and relates to water improvements for
the applicable funds. Therefore, it is included as a business-type activity. 362,841
The sewer access capital project fund is proprietary in nature and relates to sewer improvements for
the applicable funds. Therefore, it is included as a business-type activity. 13,633
29,703,124$ Total net position - business-type activities
See notes to basic financial statements. 38
Water (601)
Sanitary Sewer
(602) Refuse (603)
Operating revenues
Charges for services 1,162,651$ 1,414,646$ 385,244$
Operating expenses
Wages and salaries 205,966 152,048 28,558
Materials and supplies 90,485 24,792 2,301
Repairs and maintenance 70,796 36,963 1,155
Professional services 77,053 37,715 3,551
Insurance 21,405 13,214 -
Utilities 95,399 23,257 -
Depreciation 455,628 550,356 115
Contracted services - 288,448 353,936
Equipment 36,035 2,336 -
Miscellaneous 9,069 2,070 1,397
Total operating expenses 1,061,836 1,131,199 391,013
Operating income (loss) 100,815 283,447 (5,769)
Nonoperating revenues
(expenses)
Investment income (52,921) (32,730) (5,702)
Special assessments 676 (96) 84
Loss on disposal of asset (12,564) (13,570) -
Property taxes 10 - -
Interest expense (93,744) (84,386) -
Amortization of bond premium 82,224 8,025 -
Other income 41,971 1,374 53
Total nonoperating revenues
(expenses) (34,348) (121,383) (5,565)
Income (loss) before capital
contributions and transfers 66,467 162,064 (11,334)
Capital contributions 140,490 77,115 -
Transfers in 186,000 140,000 -
Transfers out (46,585) (22,320) (70)
Change in net position 346,372 356,859 (11,404)
Net position
Beginning of year 11,641,064 11,332,374 230,894
Prior period adjustment (239,803) (83,056) -
Beginning of year, restated 11,401,261 11,249,318 230,894
End of year 11,747,633$ 11,606,177$ 219,490$
City of St. Joseph
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2022
39
Storm Water
(651)
Street Light
Utility (652) Total
269,615$ 85,720$ 3,317,876$
34,050 15,156 435,778
1,056 - 118,634
16,626 1,113 126,653
4,930 247 123,496
- - 34,619
1,021 52,135 171,812
155,497 - 1,161,596
- - 642,384
- - 38,371
2,103 491 15,130
215,283 69,142 2,868,473
54,332 16,578 449,403
(9,842) (2,823) (104,018)
24,819 37 25,520
- - (26,134)
- - 10
- - (178,130)
- - 90,249
108 26 43,532
15,085 (2,760) (148,971)
69,417 13,818 300,432
46,210 - 263,815
- - 326,000
(53,365) - (122,340)
62,262 13,818 767,907
5,329,454 94,441 28,628,227
253,375 - (69,484)
5,582,829 94,441 28,558,743
5,645,091$ 108,259$ 29,326,650$
See notes to basic financial statements. 40
City of St. Joseph
Reconciliation of the Statement of Revenues, Expenses,
and Changes in Net Position - Business-Type Activities
Total net change in fund net position - proprietary funds 767,907$
Amounts reported for business-type activities in the Statement of Activities are different because:
Recognized current year activity from the water access capital project fund with the business-type
activities. (17,800)
Recognized current year activity from the sewer access capital project fund with the business-type
activities. (7,271)
Capital contributions from governmental activities (58,884)
Transfers in of capital assets from governmental activities 58,884
Change in net position - business-type activities 742,836$
Year Ended December 31, 2022
See notes to basic financial statements. 41
Water (601)
Sanitary Sewer
(602) Refuse (603)
Cash Flows - Operating Activities
Receipts from customers and users 1,156,384$ 1,418,544$ 381,963$
Payments to suppliers (405,143) (347,497) (360,710)
Payments to employees (188,561) (138,817) (26,665)
Other miscellaneous receipts 45,397 4,549 579
Net cash flows - operating activities 608,077 936,779 (4,833)
Cash Flows - Noncapital Financing
Activities
Transfer from other funds 186,000 140,000 -
Transfer to other funds (46,585) (22,320) (70)
Net cash flows - noncapital financing
Activities 139,415 117,680 (70)
Cash Flows - Capital and Related
Financing Activities
Principal paid on debt (540,000) (541,950) -
Interest paid on debt (117,072) (88,753) -
Proceeds from disposal of capital assets - 1,449,288 -
Acquisition of capital assets (11,124) (4,463) -
Net cash flows - capital and related
Financing activities (668,196) 814,122 -
Cash Flows - Investing Activities
Interest and dividends received (57,143) (36,349) (6,114)
Net change in cash and cash equivalents 22,153 1,832,232 (11,017)
Cash and Cash Equivalents
Beginning of year 1,290,923 772,897 207,664
End of year 1,313,076$ 2,605,129$ 196,647$
Reconciliation of Operating
Income (Loss) to Net Cash Flows -
Operating Activities
Operating income (loss) 100,815$ 283,447$ (5,769)$
Adjustments to reconcile operating income (loss)
to net cash flows - operating activities
Depreciation expense 455,628 550,356 115
Pension expense 10,132 7,915 1,275
Other miscellaneous receipts 45,397 4,549 579
Accounts receivable (1,312) 3,618 (3,460)
Due from other governments 423 280 179
Accounts payable (3,569) 14,470 1,627
Due to other governmental units (1,332) 66,828 3
Salaries payable 1,418 (539) (268)
Compensated absences payable 5,855 5,855 886
Unearned revenue (5,378) - -
Total adjustments 507,262 653,332 936
Net cash flows - operating activities 608,077$ 936,779$ (4,833)$
Non-Cash Capital and Financing Activities
Capital asset contributions from
governmental funds 140,490$ 77,115$ -$
City of St. Joseph
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2022
42
Storm Water
(651)
Street Light
Utility (652) Total
265,235$ 97,435$ 3,319,561$
(25,495) (53,866) (1,192,711)
(30,689) (14,293) (399,025)
8,477 139 59,141
217,528 29,415 1,786,966
- - 326,000
(53,365) - (122,340)
(53,365) - 203,660
- - (1,081,950)
- - (205,825)
- - 1,449,288
(57,803) - (73,390)
(57,803) - 88,123
(10,900) (3,075) (113,581)
95,460 26,340 1,965,168
265,028 77,030 2,613,542
360,488$ 103,370$ 4,578,710$
54,332$ 16,578$ 449,403$
155,497 - 1,161,596
1,466 637 21,425
8,477 139 59,141
(4,441) 11,689 6,094
61 26 969
241 (190) 12,579
- 310 65,809
(7) (217) 387
1,902 443 14,941
- - (5,378)
163,196 12,837 1,337,563
217,528$ 29,415$ 1,786,966$
46,210$ -$ 263,815$
43
(THIS PAGE LEFT BLANK INTENTIONALLY)
City of St. Joseph
Notes to Basic Financial Statements
44
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of St. Joseph (the "City") is a statutory city governed by an elected mayor and four council
members. The accompanying financial statements present the government entities for which the
government is financially accountable.
The financial statements present the City and its component units. The City includes all funds, account
groups, 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.
As a result of applying the component unit definition criteria above, certain organizations have been
defined and are presented in this report as follows:
Blended Component Unit – Reported as if they were part of the City.
Joint Ventures – The relationship of the City with the entity is disclosed.
For each of the categories above, the specific entities are identified as follows:
1. Blended Component Unit
The St. Joseph Economic Development Authority (EDA) was organized for the purpose of
preserving and creating jobs, enhancing the tax base, and promoting the general welfare of the
people of the City. The St. Joseph EDA is governed by a five member board appointed by the City
Council, two members of which are City Council Members. The St. Joseph EDA is included as a
blended component unit of the City because the St. Joseph EDA is financially accountable to the
City, as the City Council approves the budget. The St. Joseph EDA provides services almost entirely
for the City. The St. Joseph EDA is presented as the Economic Development Authority Special
Revenue Fund. Separate financial statements are not prepared for the St. Joseph EDA.
2. Joint Ventures
The Central Minnesota Major Crime Investigation Unit is a group of local law enforcement officers
within the four county surrounding areas that will be available to assist any of the participating
entities in the investigation and solution of major crimes. During 2022, the City contributed $15,789
to the organization. It is reported as a special revenue fund of the City of Sartell. Complete financial
statements can be obtained from: City of Sartell, 125 Pine Cone Road North, Sartell, Minnesota
56377.
City of St. Joseph
Notes to Basic Financial Statements
45
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 activities of the City. Governmental activities, which
normally are supported by taxes and intergovernmental revenues, are reported separately from business-
type activities, which rely to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Interest on general long-term debt is considered an indirect expense and is
reported separately in the Statement of Activities. 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. Internally dedicated revenues are
reported as general revenues rather than program revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are
recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current 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, franchise taxes, licenses, and interest associated with the current period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current period.
Only the portion of special assessments receivable due within the current 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.
City of St. Joseph
Notes to Basic Financial Statements
46
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
DESCRIPTION OF FUNDS:
Major Governmental Funds:
General Fund – This fund is the City’s primary operating fund. It accounts for all financial resources
of the general City, except those required to be accounted for in another fund.
G.O. Industrial Park Bonds of 2019A – This fund accounts for the payments made on principal and
interest on bonds issued to finance the 2019 Industrial Park Project.
G.O. Tax Abatement Bonds of 2015B – This fund accounts for the payments made on principal and
interest on bonds issued to finance the 2015 tax abatement.
St. Joseph Community Center/YMCA – This fund accounts for activity related to the St. Joseph
Community Center/YMCA.
Proprietary Funds:
Water Fund – This fund accounts for the operations of the City’s water utility.
Sanitary Sewer Fund – This fund accounts for the operations of the City’s sanitary sewer utility.
Refuse Fund – This fund accounts for the operations of the City’s refuse and compost utility.
Storm Water Fund – This fund accounts for the operations of the City’s storm water utility.
Street Light Utility Fund – This fund accounts for the operations of the City’s street light utility.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the City’s water, sanitary
sewer, refuse, storm water, and street light utility functions and various other functions of the City.
Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
Proprietary funds distinguish operating revenues and expenses from 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 Water, Sanitary Sewer, Refuse, Storm Water, and Street Light Utility Enterprise Funds are charges
to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
City of St. Joseph
Notes to Basic Financial Statements
47
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity
1. Deposits and Investments
Cash and investments include balances from all funds that are combined and invested to the extent
available in various securities as authorized by state law. Earnings from the pooled investments are
allocated to the individual funds based on the average of month-end cash and investment balances.
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.
Minnesota Statutes §118A outlines types of investments allowed, which authorizes the City to
invest in obligations of the U.S. Treasury, agencies, and instrumentalities, shares of investment
companies whose only investments are in the aforementioned securities, obligations of the State of
Minnesota or its municipalities, bankers’ acceptances, future contracts, repurchase and reverse
repurchase agreements, and commercial paper of the highest quality with a maturity of no longer
than 270 days and in the Minnesota Municipal Investment Pool.
Certain investments for the City are reported at fair value as disclosed in Note 3. 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.
In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities
are 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 7 days interest on the amount withdrawn.
2. Receivables and Payables
All trade and property tax receivables are shown at a gross amount since both are assessable to the
property taxes and are collectible upon the sale of the property.
The City levies its property tax for the subsequent year during the month of December. December 28
is the last day the City can certify a tax levy to the County Auditor for collection the following year.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. The
property tax is recorded as revenue when it becomes measurable and available. Stearns County is the
collecting agency for the levy and remits the collections to the City four times a year. The tax levy
notice is mailed in March with the first half of the payment due on May 15 and the second half due
on October 15. Taxes not collected as of December31 each year are shown as delinquent taxes
receivable.
City of St. Joseph
Notes to Basic Financial Statements
48
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity
(Continued)
2. Receivables and Payables (Continued)
The County Auditor prepares the tax list for all taxable property in the City, applying the applicable
tax rate to the tax capacity of individual properties, to arrive at the actual tax for each property. The
County Auditor also collects all special assessments, except for certain prepayments paid directly to
the City.
The County Auditor submits the list of taxes and special assessments to be collected on each parcel
of property to the County Treasurer in January of each year.
3. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported
using the consumption method and recorded as expenditures at the time of consumption.
4. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the City as assets
with an initial, individual cost of more than $1,000 and an estimated useful life in excess of two
years. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets’ lives are not capitalized.
Property, plant, and equipment of the City are depreciated using the straight-line full year convention
method over the following estimated useful lives:
Years
Land improvements 5-20
Buildings 30-40
Building improvements 15
Infrastructure 10-50
Sewer rights 20-50
Furniture and fixtures 5-10
Vehicles 5-20
Equipment 3-7
Machinery 5-7
Assets
City of St. Joseph
Notes to Basic Financial Statements
49
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity
(Continued)
5. Deferred Outflows/ Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element 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 that time. The City presents deferred outflows of resources on the
Statements of Net Position for deferred outflows of resources related to pensions for various estimate
differences that will be amortized and recognized over future years.
In addition to liabilities, the statement of financial position and fund financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisition of net assets that applies to future periods and so will not
be recognized as an inflow of resources (revenue) until that time. The City has four items that
qualify for reporting in this category. The City presents deferred inflows of resources on the
Governmental Fund Balance Sheet as unavailable revenue. The governmental funds report
unavailable revenues from four sources: property taxes, special assessments, lease receivable, and
state shared taxes. These amounts are deferred and recognized as an inflow of resources in the period
that the amounts become available. The City presents deferred inflows of resources on the
Statements of Net Position for deferred inflows of resources related to pensions for various estimate
differences that will be amortized and recognized over future years. The City presents deferred
inflows of resources on the Statements of Net Position for the deferred charge on refunding. A
deferred charge on refunding results from the difference in the carrying value of refunded debt and
reacquisition price. Deferred inflows of resources related to lease receivable is reported in both the
government-wide Statement of Net Position and the Governmental Funds Balance Sheet.
6. Compensated Absences
The City compensates employees who leave City service in good standing for all earned, unused
vacation. Employees can accrue up to 200 hours of vacation depending on years of service. The
maximum amount of carryover from year-to-year is 100 hours or the amount of the current vacation
accrual rate. In addition, employees are compensated for unused sick leave (up to a maximum of 720
hours or 960 hours for LELS and AFSCME employees) at various rates depending on the employee
type and years of service, provided the City’s notice of termination policy has been complied with.
7. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type Statement of Net Position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
effective interest method.
City of St. Joseph
Notes to Basic Financial Statements
50
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity
(Continued)
7. Long-Term Obligations (Continued)
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.
8. 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 the relief association and additions to/deductions from PERA’s and the
relief association’s fiduciary net position have been determined on the same basis as they are
reported by PERA and the relief association 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.
9. Fund Equity
a) Classification
In the fund financial statements, governmental funds report fund classifications that comprise a
Hierarchy based primarily on the extent to which the City is bond to honor constraints on the
specific purpose for which amounts in those funds can be spent.
Nonspendable Fund Balance – These are amounts that cannot be spent because they are not
in spendable form as they are legally or contractually required to be maintained intact and
include amounts set aside for prepaid items.
Restricted Fund Balance – These are amounts that are restricted to specific purposes either by
a) constraints placed on the use of resources by creditors, grantors, contributors, or laws or
regulations of other governments, or b) imposed by law through enabling legislation.
Committed Fund Balance – These are amounts that can only be used for specific purposes
pursuant to constraints imposed by the City Council (highest level of decision making
authority) through resolution. The City Council must also pass a resolution to remove the
constraint of committed resources.
Assigned Fund Balance – These are amounts that are constrained by the City’s intent to be
used for specific purposes but are neither restricted nor committed. Assignments are made by
the City’s Finance Director based on the City Council’s direction.
City of St. Joseph
Notes to Basic Financial Statements
51
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/ Inflows of Resources, and Net Position or Equity
(Continued)
9. Fund Equity (Continued)
a) Classification (Continued)
Unassigned Fund Balance – 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, committed, and assigned fund balances exceed
the total net resources of that fund.
When both restricted and unrestricted resources are available for use, it is the City’s policy to
first use restricted resources, and then use unrestricted resources as they are needed. When
committed, assigned, and unassigned resources are available for use, it is the City’s policy to
use resources in the following order: committed, assigned, and unassigned.
b) Minimum Fund Balance
The City’s target General Fund balance is to maintain working capital, a portion of the
unassigned balance, in the amount of four to six months of the next year’s budgeted expenditures
of the General Fund.
10. Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities, and
deferred inflows of resources in the government-wide financial statements. Net investment in capital
assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance
of any long-term debt used to build or acquire the capital assets. A reclassification of $2,766,979
between this net position class and unrestricted net position in the total column of the Statement of
Net Position to recognize the portion of debt attributable to capital assets donated from governmental
activities to business-type activities. Net position is reported as restricted in the government-wide
financial statement when there are limitations on use through external restrictions imposed by
creditors, grantors, or laws or regulations of other governments. The restricted for other purposes
restriction of net position for governmental activities of $3,148,066 includes $10,729 PEG Access
Fees, $60,297 for tax increment financing, $1,533,047 in state collected sales tax restricted by
enabling legislation, $19,125 restricted for lodging tax, $300,342 in park dedication fees, $430
restricted by donors for future projects, $53,933 DEED Funds, $84,095 in revolving loan funds
restricted for EDA projects, $697,799 restricted for fire service, and $388,269 for unused MSA
funds.
11. 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 revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estimates.
City of St. Joseph
Notes to Basic Financial Statements
52
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Budgetary Information
1. In August of each year, City staff submits to the City Council, a proposed operating budget for
the year commencing the following January 1. The operating budget includes proposed
expenditures and the means of financing them for the upcoming year.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments.
4. Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America.
5. Expenditures may not legally exceed budgeted appropriations at the department level. No fund’s
budget can be increased without City Council approval. The City Council may authorize transfer
of budgeted amounts between departments within any fund. Management may amend budgets
within a department level, so long as the total department budget is not changed.
6. Annual appropriated budgets are adopted during the year for the General Fund and the Economic
Development Authority, State Collected Sales Tax, Park Dedication, and Fire special revenue
funds and debt service funds. Budgetary control for the remaining special revenue fund is done
through the use of project controls when the council authorizes the project. Budgetary control for
Capital Projects Funds is accomplished through the use of project controls and formal
appropriated budgets are not adopted.
7. Budgeted amounts are as originally adopted by the City Council. Budgeted expenditure
appropriations lapse at year-end.
Encumbrances outstanding at year-end expire and outstanding purchase orders are canceled and not
reported in the financial statements.
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Deficit Fund Balance
The following fund had a deficit fund balance at December 31, 2022.
Nonmajor governmental funds
Special Revenue
TIF 2-3 Bayou Blues/Alley Flat 6,675$
Capital project
2023 Street Overlay Imp/Elm St ROW Acq 9,676
Debt Service
2020A Equipment Certificate 1,127
This deficit will be eliminated with future tax increment revenues and future transfers.
City of St. Joseph
Notes to Basic Financial Statements
53
NOTE 3 – DEPOSITS AND INVESTMENTS
Cash balances of the City’s funds are combined (pooled) and invested to the extent available in various
investments authorized by Minnesota Statutes. Each fund’s portion of this pool (or pools) is displayed in
the financial statements as "cash and cash equivalents" or "investments." For purposes of identifying risk
of investing public funds, the balances and related restrictions are summarized as follows.
A. Deposits
Custodial Credit Risk – Deposits: This is the risk that in the event of a bank failure, the City’s deposits
may not be returned to it. The City has a policy that requires the City’s deposits be collateralized as
required by Minnesota Statutes for an amount exceeding FDIC, SAIF, BIF, or FCUA coverage. As of
December 31, 2022, the City’s bank balance was not exposed to custodial credit risk because it was fully
insured through the FDIC or NCUA and fully collateralized with securities held by the pledging
financial institutions trust department or agent and in the City’s name. As of December 31, 2022, the
City’s deposits had a carrying value as shown as follows:
Certificates of deposits 5,831,727$
Checking 131,349
Savings 315,210
Total 6,278,286$
B. Investments
As of December 31, 2022, the City had the following investments:
Weighted
Fair Average Moody's
Investment Type Value Maturity (Years) Rating
Brokered money market 3,674,825$ N/A N/A
Brokered bond securities 11,354,582 1.75 Aa2 to Aaa
4M Funds 591,563 N/A N/A
Total 15,620,970$
Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes 118A.04 and 118A.05 limit investments based on rating level and
investment type. The City’s investment policy limits the allowable investments in accordance with these
statutes. As of December 31, 2022, the City’s investments were rated as listed in the table above.
Interest Rate Risk: The City should try to minimize the risk that arises from over investing in specific
instruments, individual financial institutions, or maturities. The City’s investment policy states the
investment portfolio will be structured so that securities mature to meet cash flow requirements and
avoiding the need to sell securities prior to maturity, investing in short-term securities, investing in long-
term securities if the market rate is favorable.
City of St. Joseph
Notes to Basic Financial Statements
54
NOTE 3 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Concentration of Credit Risk: Investments should be diversified to avoid incurring unreasonable risks
inherent in over investing in specific instruments, individual financial institutions, or maturities. The
City’s investment policy states the City will attempt to diversify its investments according to type,
issuer, and maturity. The portfolio, as much as possible, will contain both short-term and long-term
investments. The City will attempt to match its investments with anticipated cash flow requirements.
Extended maturities may be utilized to take advantage of higher yields. No more than 20% of the total
investments should extend beyond five years and the weighted average maturity of the portfolio shall
never exceed five years. As of December 31, 2022, the City's investments in Federal Home Loan Banks
(5.6%, 6.9%, 7.0% and 7.3%) exceed 5% of the investment portfolio.
Custodial Credit Risk – Investments: For an investment, this is the risk that in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City’s investment policy addresses this risk and states
the City will permit investments only to the extent that there is Securities Investor Protection
Corporation (SIPC) and excess SIPC coverage available.
The City has the following recurring fair value measurements as of December 31, 2022:
$4,132,430 of investments are valued using a quoted market prices (Level 1 inputs)
$11,363,717 of investments are valued using a matrix pricing model (Level 2 inputs)
C. Deposits and Investments
The following is a summary of deposits and investments as of December 31, 2022:
Deposits (Note 3.A.)6,278,286$
Investments (Note 3.B.) 15,620,970
Petty cash 200
Total 21,899,456$
Deposits and investments are presented in the December 31, 2022, basic financial statements as follows:
Statement of Net Position
Cash and investments 21,899,456$
Total deposits and investments 21,899,456$
City of St. Joseph
Notes to Basic Financial Statements
55
NOTE 4 – LEASE RECEIVABLE
The City has a Site lease agreement with Verizon Wireless for certain real property located at 3563
County Road 136, in the City of St. Joseph. This lease was originally entered into on June 12, 2009, with
the currently signed amendment extension term ending January 31, 2029. Total rent income earned from
this lease was $20,808 for the year ended December 31, 2022. The Net present value of future lease
payments has been recorded as a lease receivable and a deferred inflow of resources, discounted at a 3%
discount rate and had an ending balance, at June 30, 2022 of $124,020. The revenue will be recognized
in future years.
NOTE 5 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
The composition of interfund balances as of December 31, 2022, is as follows:
Amounts Due from Other Funds
Other
Governmental
Funds
General Fund 9,676$
Other Governmental Funds 6,800
Total 16,476$
Amounts Due to
Other Funds
The due from/due to other funds balances represent loans made to cover tax increment financing (TIF)
consulting costs to establish the TIF districts and contract revenue reductions and to cover the 2023
street improvement construction costs prior to bond issue.
City of St. Joseph
Notes to Basic Financial Statements
56
NOTE 5 – INTERFUND BALANCES AND TRANSFERS (CONTINUED)
B. Transfers
The composition of interfund transfers as of December 31, 2022, is as follows
Transfer In Transfer Out Description Amount
General Fund Other Governmental Funds Transfer to close fund 28,823$
General Fund G.O. Abatement Bonds 2015B Transfer to close fund 27,228
General Fund Water Transfer retirement reserve funding 6,585
General Fund Sanitary Sewer Transfer retirement reserve funding 6,320
General Fund Refuse Transfer retirement reserve funding 70
General Fund Storm Water Transfer retirement reserve funding 365
Other Governmental Funds General Fund Transfer of park dedication fees for budget reserves 49,700
Other Governmental Funds Other Governmental Funds Transfer funds for fire debt relief 17,000
Other Governmental Funds Other Governmental Funds Transfer for future economic development projects 50,000
Other Governmental Funds General Fund Transfer reserves to early redeem bonds 209,364
Other Governmental Funds Other Governmental Funds Transfer to close fund 215,727
Other Governmental Funds Storm Water Annual transfer for bond payment 53,000
Other Governmental Funds G.O. Abatement Bonds 2015B
Transfer for bond payment 150,000
Other Governmental Funds Other Governmental Funds Transfer sales tax revenue committed for bond payment 5,000
Other Governmental Funds Water Transfer budget reserves 40,000
Other Governmental Funds Sanitary Sewer
Transfer budget reserves 10,000
Water Other Governmental Funds Transfer WAC fees for debt payment 180,000
Water Sanitary Sewer
Annual transfer for debt payments 6,000
Sanitary Sewer Other Governmental Funds Annual transfer for debt payments 140,000
1,195,182$
City of St. Joseph
Notes to Basic Financial Statements
57
NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 762,197$ -$ -$ 762,197$
Easements 200,085 131,008 - 331,093
Construction in progress 1,333,706 1,918,183 1,922,017 1,329,872
Total capital assets
not being depreciated 2,295,988 2,049,191 1,922,017 2,423,162
Capital assets being depreciated
Buildings 7,299,059 - - 7,299,059
Infrastructure 26,027,162 1,885,552 - 27,912,714
Improvements 1,377,030 49,710 15,195 1,411,545
Intangible assets 200,000 - - 200,000
Machinery and equipment 4,441,111 362,536 135,218 4,668,429
Total capital assets
being depreciated 39,344,362 2,297,798 150,413 41,491,747
Less accumulated depreciation for
Buildings 1,591,677 185,707 - 1,777,384
Infrastructure 17,718,359 914,755 - 18,633,114
Improvements 755,888 47,970 15,195 788,663
Intangible assets 50,000 10,000 - 60,000
Machinery and equipment 3,446,271 265,517 85,379 3,626,409
Total accumulated
depreciation 23,562,195 1,423,949 100,574 24,885,570
Total capital assets being
depreciated, net 15,782,167 873,849 49,839 16,606,177
Governmental activities capital
assets, net 18,078,155$ 2,923,040$ 1,971,856$ 19,029,339$
City of St. Joseph
Notes to Basic Financial Statements
58
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions/programs of the City as follows:
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being depreciated
Land 377,882$ -$ -$ 377,882$
Easements 67,915 - - 67,915
Construction in progress 1,498,789 379,633 1,690,874 187,548
Total capital assets
not being depreciated 1,944,586 379,633 1,690,874 633,345
Capital assets being depreciated
Buildings 8,797,686 - - 8,797,686
Improvements other than buildings 289,760 - - 289,760
Plant and lines 27,068,783 1,572,195 180,210 28,460,768
Machinery and equipment 1,143,827 6,768 - 1,150,595
Sewer rights 10,977,565 - - 10,977,565
Total capital assets
being depreciated 48,277,621 1,578,963 180,210 49,676,374
Less accumulated depreciation for
Buildings 3,038,818 214,142 - 3,252,960
Improvements other than buildings 57,952 14,488 - 72,440
Plant and lines 8,902,956 551,848 154,075 9,300,729
Machinery and equipment 806,866 89,122 - 895,988
Sewer rights 3,069,359 291,996 - 3,361,355
Total accumulated
depreciation 15,875,951 1,161,596 154,075 16,883,472
Total capital assets being
depreciated, net 32,401,670 417,367 26,135 32,792,902
Business-type activities captial
assets, net 34,346,256$ 797,000$ 1,717,009$ 33,426,247$
City of St. Joseph
Notes to Basic Financial Statements
59
NOTE 6 – CAPITAL ASSETS (CONTINUED)
Governmental activities
General government 122,731$
Public safety 173,187
Public works 952,149
Culture and recreation 175,664
Economic development 218
Total depreciation expense - governmental activities 1,423,949$
Business-type activities
Water 455,628$
Sanitary sewer 550,356
Refuse 115
Storm sewer 155,497
Total depreciation expense - business-type activities 1,161,596$
NOTE 7 – LONG-TERM DEBT
A. General Obligation Bonds
The City issues General Obligation (G.O.) bonds to provide for financing improvement, development,
and street improvement projects.
G.O. bonds are direct obligations and pledge the full faith and credit of the City. These bonds generally
are issued as 5 to 20 year serial bonds with equal debt service payments each year.
Revenue bonds are issued by the City where the City pledges income derived from the acquired or
constructed assets to pay debt service including access and trunk charges and utility user fees.
City of St. Joseph
Notes to Basic Financial Statements
60
NOTE 7 – LONG-TERM DEBT (CONTINUED)
B. Components of Long-Term Liabilities
Issue Interest Original Final Principal Due Within
Date Rate Issue Maturity Outstanding One Year
Governmental Activities
G.O. Bonds, including Refunding Bonds
G.O. Capital Improvement Plan 2016A 07/07/16 2.00%-2.875% 4,275,000$ 12/15/36 3,170,000$ 195,000$
G.O. Certificates of Indebtedness 2018A 02/28/18 2.50% 265,000 12/15/23 56,000 56,000
G.O. Certificates of Indebtedness 2020A 03/05/20 1.45% 220,000 12/15/25 134,000 44,000
G.O. Captial Improvement Plan 2020B 11/12/20 0.40%-2.00% 690,000 12/15/33 630,000 60,000
G.O. Certificates of Indebtedness 2022A 08/30/22 4.00% 660,000 12/15/31 660,000 55,000
Total G.O. Bonds 4,650,000 410,000
G.O. Special Assessment Bonds
G.O. Improvement Bonds of 2016B 11/03/16 1.00%-3.00% 740,000 12/15/32 490,000 50,000
G.O. Improvement Bonds of 2017B 08/30/17 2.25%-3.00% 344,000 12/15/27 170,000 34,000
G.O. Improvement Bonds of 2019A 09/12/19 4.00%-5.00% 3,705,000 12/15/29 2,580,000 375,000
G.O. Improvement Bonds of 2020B 11/12/20 0.40%-2.00% 625,000 12/15/31 560,000 65,000
G.O. Refunding Improvement Bonds of 2020B 11/12/20 0.40%-2.00% 190,000 12/15/24 100,000 50,000
Taxable G.O. Crossover Refunding
Bonds, Series 2020C 11/12/20 0.40%-1.60% 1,365,000 12/01/30 1,220,000 150,000
G.O. Improvement Bonds of 2021A 09/14/21 2.00%-4.00% 3,190,000 12/15/36 2,930,000 260,000
G.O. Improvement Bonds of 2022A 08/30/22 4.00% 620,000 12/15/32 620,000 65,000
Total G.O. Special
Assessment Bonds 8,670,000 1,049,000
G.O. Abatement Bonds
G.O. Tax Abatement Bonds of 2022A 08/30/22 4.00% 6,125,000 12/15/42 6,125,000 140,000
Unamortized premiums/discounts 1,156,913 -
Compensated absences 479,191 124,240
Total long-term liabilities,
governmental activities 21,081,104$ 1,723,240$
Issue Interest Original Final Principal Due Within
Date Rate Issue Maturity Outstanding One Year
Business-type Activities
G.O. Revenue Bonds
G.O. Sewer Refunding Bonds of 2020B 11/12/20 0.40%-2.00% 1,045,000$ 12/15/28 800,000$ 130,000$
Taxable G.O. Crossover Refunding
Bonds, Series 2020C 11/12/20 0.40%-1.90% 445,000 12/01/32 405,000 40,000
G.O. Water Revenue Refunding Bonds 2021A 09/14/21 2.00%-4.00% 2,185,000 12/15/28 1,755,000 470,000
Total G.O. Revenue Bonds 2,960,000 640,000
Notes from direct borrowing
Utility Revenue Notes Payable
City of St. Cloud SIS
Phase 4 (2013B Bonds) 11/01/13 3.00%-4.00% 650,000 02/01/29 350,000 45,000
City of St. Cloud RUE Project PFA Loan 08/01/10 1.77% 4,527,703 08/20/30 2,059,071 241,945
City of St. Cloud Lift Station Improvements 08/24/16 1.00% 469,263 08/20/26 206,283 50,820
City of St. Cloud NR2 Biosolids 10/09/17 1.10% 1,744,736 08/20/37 1,374,321 84,773
Total notes from direct borrowing 3,989,675 422,538
Unamortized premium 190,470 -
Compensated absences 130,183 29,213
Total business-type activities 7,270,328 1,091,751
Total all long-term liabilities 28,351,432$ 2,814,991$
City of St. Joseph
Notes to Basic Financial Statements
61
NOTE 7 – LONG-TERM DEBT (CONTINUED)
B. Components of Long-Term Liabilities (Continued)
Long-term bonded indebtedness listed on the previous page and above were issued to finance acquisition
and construction of capital assets or to refinance (refund) previous bond issues.
C. Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2022, was as follows:
Beginning Ending
Balance Additions Reductions Balance
Governmental activities
Bonds payable
General obligation 4,510,000$ 660,000$ 520,000$ 4,650,000$
G.O. special assessment bonds 9,509,000 620,000 1,459,000 8,670,000
G.O. abatement bonds 1,175,000 6,125,000 1,175,000 6,125,000
Total bonds payable 15,194,000 7,405,000 3,154,000 19,445,000
Unamortized premiums/discounts 834,378 507,962 185,427 1,156,913
Compensated absences 529,304 306,443 356,556 479,191
Total governmental
activities 16,557,682$ 8,219,405$ 3,695,983$ 21,081,104$
Beginning Ending
Balance Additions Reductions Balance
Business-type activities
Bonds payable
G.O. utility revenue bonds 3,625,000$ -$ 665,000$ 2,960,000$
Note from direct borrowing
City of St. Cloud notes 4,406,625 - 416,950 3,989,675
Unamortized premiums 277,202 - 86,732 190,470
Compensated absences 115,242 65,251 50,310 130,183
Total business-type
activities 8,424,069 65,251 1,218,992 7,270,328
Total long-term liabilities 24,981,751$ 8,284,656$ 4,914,975$ 28,351,432$
For governmental activities, the General Fund typically liquidates the liability related to compensated
absences. For Business-Type Activities, the Water, Sanitary Sewer, Refuse, Storm Water, and Street
Light Utility Funds typically liquidates the liability related to the compensated absences.
City of St. Joseph
Notes to Basic Financial Statements
62
NOTE 7 – LONG-TERM DEBT (CONTINUED)
D. Minimum Debt Payments
Minimum annual principal and interest payments required to retire long-term liabilities:
Year Ended
December 31, Principal Interest Principal Interest
2023 410,000$ 123,726$ 1,049,000$ 288,741$
2024 370,000 106,688 1,039,000 245,013
2025 380,000 99,195 994,000 210,090
2026 340,000 90,443 989,000 174,145
2027 350,000 82,243 979,000 138,025
2028-2032 1,730,000 278,103 3,125,000 254,090
2033-2037 1,070,000 73,684 495,000 24,600
Total 4,650,000$ 854,082$ 8,670,000$ 1,334,704$
Year Ended
December 31, Principal Interest Total
2023 140,000$ 316,458$ 2,327,925$
2024 215,000 239,400 2,215,101
2025 225,000 230,800 2,139,085
2026 235,000 221,800 2,050,388
2027 245,000 212,400 2,006,668
2028-2032 1,375,000 907,000 7,669,193
2033-2037 1,660,000 610,600 3,933,884
2038-2042 2,030,000 246,000 2,276,000
Total 6,125,000$ 2,984,458$ 24,618,244$
Governmental Activities
Abatement Bonds
Governmental Activities
G.O. Bonds G.O. Special Assessment Bonds
City of St. Joseph
Notes to Basic Financial Statements
63
NOTE 7 – LONG-TERM DEBT (CONTINUED)
D. Minimum Debt Payments (Continued)
Year Ended
December 31, Principal Interest Principal Interest Total
2023 640,000$ 89,140$ 422,538$ 64,628$ 1,216,306$
2024 665,000 67,540 428,004 57,331 1,217,875
2025 685,000 46,960 439,037 50,098 1,221,095
2026 250,000 23,460 444,841 42,632 760,933
2027 270,000 17,210 397,975 34,978 720,163
2028-2032 450,000 18,095 1,373,909 74,387 1,916,391
2033-2037 - - 483,371 15,993 499,364
Total 2,960,000$ 262,405$ 3,989,675$ 340,047$ 7,552,127$
Utility Revenue Bonds
Business-Type Activities
Notes From Direct Borrowing
E. Conduit Debt
Conduit debt obligations are certain limited obligation revenue bonds or similar debt instruments issued
for the express purpose of providing capital financing for a specific third party. The City has issued
various revenue bonds to provide funding to private sector entities for projects deemed to be in the
public interest. Although these bonds bear the name of the City, the City has no obligation for such debt.
Accordingly, the bonds are not reported as liabilities in the financial statements of the City.
At December 31, 2022, the City’s outstanding conduit debt balance consisted of the following:
$21,195,000 Senior Housing and Healthcare Revenue Bonds,
Series 2019A 21,075,000$
City of St. Joseph
Notes to Basic Financial Statements
64
NOTE 8 – FUND BALANCE
Fund equity balances are classified as follows to reflect the limitations and restrictions of the respective
funds.
G.O. Industrial Jacob Nonmajor
Park Bonds of Wetterling Governmental
General 2019A Recreaction Center Fund Total
Nonspendable
Prepaid items 17,500$ -$ -$ -$ 17,500$
Restricted
PEG access fees 10,729 - - - 10,729
Debt service - 95,937 - 1,336,382 1,432,319
Tax increments - - - 60,297 60,297
State collected sales tax projects - - - 1,533,047 1,533,047
Park dedication fees - - - 300,342 300,342
Fire services - - - 697,799 697,799
Chartitable gambling - - - 430 430
Lodging tax - - - 19,125 19,125
DEED CDAP - - - 53,933 53,933
Revolving loan - - - 84,095 84,095
Total restricted 10,729 95,937 - 4,085,450 4,192,116
Committed
Economic development - - - 480,461 480,461
Assigned
Elections 143 - - - 143
Police forfeiture 83,396 - - - 83,396
Severance pay 375,770 - - - 375,770
Capital outlay reserves 1,319,921 - 6,124,499 1,930,658 9,375,078
Debt service relief - - - - -
Total assigned 1,779,230 - 6,124,499 1,930,658 9,834,387
Unassigned 2,208,807 - - (17,478) 2,191,329
Total 4,016,266$ 95,937$ 6,124,499$ 6,479,091$ 16,715,793$
NOTE 9 – RISK MANAGEMENT
The City purchases commercial insurance coverage through the League of Minnesota Cities Insurance
Trust (LMCIT) with other cities in the state, which is a public entity risk pool currently operating as a
common risk management and insurance program. The City pays an annual premium to the LMCIT for
its insurance coverage. The LMCIT is self-sustaining through commercial companies for excess claims.
The City is covered through the pool for any claims incurred but unreported, however, retains risk for
the deductible portion of its insurance policies. The amount of these deductibles is considered
immaterial to the financial statements.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three years.
City of St. Joseph
Notes to Basic Financial Statements
65
NOTE 9 – RISK MANAGEMENT (CONTINUED)
The City’s workers’ compensation insurance policy is retrospectively rated. With this type of policy,
final premiums are determined after loss experience is known. The amount of premium adjustment for
2022 is estimated to be immaterial based on workers’ compensation rates and salaries for the year.
At December 31, 2022, there were no other claims liabilities reported in the fund based on the
requirements of GASB Statement No. 10, which requires a liability for claims be reported if information
prior to the issuance of the financial statements indicates it is probable a liability has been incurred at the
date of the financial statements and the amount of the loss can be reasonably estimated.
NOTE 10 – PENSION PLANS
The City participates in various pension plans, total pension expense for the year ended December 31,
2022, was $540,080. The components of pension expense are noted in the following plan summaries.
For governmental activities, the General Fund typically liquidates the liability related to pensions. For
Business-Type Activities, the Water, Sanitary Sewer, Refuse, Storm Water, and Street Light Utility
Funds typically liquidate the liability related to pensions.
Public Employees’ Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA’s defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are
tax qualified plans under Section 401(a) of the Internal Revenue Code.
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association
that elected to merge with and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service.
City of St. Joseph
Notes to Basic Financial Statements
66
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
B. Benefits Provided (Continued)
General Employees Plan Benefits
General Employees Plan benefits are based on a member’s highest average salary for any 5 successive
years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for PERA’s Coordinated Plan members. Members hired prior to July 1, 1989, receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for a Coordinated members is 1.2% for each of the first 10 years
of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. 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%. Recipients that have been receiving the annuity or benefit for at least
a full year as of the June 30 before the effective date of the increase will receive the full increase.
Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June
30 before the effective date of the increase will receive a reduced prorated increase. For members
retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if
hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring
under Rule of 90 are exempt from the delay to normal retirement.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50% after five years up to 100% after 10 years of credited service. Benefits
for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after
10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3% of average salary
for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at
1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30
before the effective date of the increase will receive the full increase. Recipients receiving the annuity or
benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the
increase will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
City of St. Joseph
Notes to Basic Financial Statements
67
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
C. Contributions (Continued)
General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2022 and the City was required to contribute 7.5% for Coordinated Plan members. The City’s
contributions to the General Employees Fund for the year ended December 31, 2022, were $93,278. The
City’s contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal
year 2022 and the City was required to contribute 17.7% for Police and Fire Plan members. The City’s
contributions to the Police and Fire Fund for the year ended December 31, 2022, were $140,357. The
City’s contributions were equal to the required contributions as set by state statute.
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2022, the City reported a liability of $1,227,605 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 $36,093.
General Employees Fund Pension Costs (Continued)
The net pension liability was measured as of June 30, 2022, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s
proportionate share of the net pension liability was based on the City’s contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2021, through June 30,
2022, relative to the total employer contributions received from all of PERA’s participating employers.
The City’s proportionate share was 0.0155% at the end of the measurement period and 0.0152% for the
beginning of the period.
City's proportionate share of the net pension liability 1,227,605$
State of Minnesota's proportionate share of the net pension
liability associated with the City 36,093
Total 1,263,698$
City of St. Joseph
Notes to Basic Financial Statements
68
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
D. Pension Costs (Continued)
For the year ended December 31, 2022, the City recognized pension expense of $191,212 for its
proportionate share of General Employees Plan’s pension expense. Included in the amount, the City
recognized $5,393 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $16 million to the General Employees Fund.
At December 31, 2022, the City reported its proportionate share of the General Employees Plan’s
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Differences between expected and actual economic experience 10,254$ 12,806$
Changes in actuarial assumptions 272,616 4,671
Net collective difference between projected
and actual investment earnings 27,299 -
Changes in proportion 44,415 -
Contributions paid to PERA subsequent
to the measurement date 46,639 -
Total 401,223$ 17,477$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
General Employees Fund Pension Costs (Continued)
The $46,639 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31,Amount
2023 134,119$
2024 124,861
2025 (32,891)
2026 111,018
Total 337,107$
City of St. Joseph
Notes to Basic Financial Statements
69
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2022, the City reported a liability of $2,745,862 for its proportionate share of the
Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2022,
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, 2021, through June 30, 2022, relative to the total employer contributions received from all
of PERA’s participating employers. The City’s proportionate share was 0.0631% at the end of the
measurement period and 0.0618% for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2022. The contribution consisted of $9 million in direct state aid that does meet the definition
of a special funding situation and $9 million in supplemental state aid that does not meet the definition
of a special funding situation. The $9 million direct state aid was paid on October 1, 2021. Thereafter,
by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until
the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement
System) is 90% funded, whichever occurs later.
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire
Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer,
(pension allocation schedules) for the $9 million in direct state aid. Police and Fire Plan employers need
to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue)
under GASB 68 special funding situation accounting and financial reporting requirements. For the year
ended December 31, 2022, the City recognized pension expense of $290,410 for its proportionate share
of the Police and Fire Plan’s pension expense. Included in this amount, the City recognized $23,283 as
pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution
of $9 million to the Police and Fire Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City also
recognized $120,034 for the year ended December 31, 2022, as revenue and an offsetting reduction of
the net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to
the Police and Fire Fund.
City of St. Joseph
Notes to Basic Financial Statements
70
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan’s deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources.
Differences between expected and actual economic experience 164,915$ -$
Changes in actuarial assumptions 1,604,562 14,731
Net collective difference between projected
and actual investment earnings 43,545 -
Changes in proportion 72,948 9,946
Contributions paid to PERA subsequent
to the measurement date 70,178 -
Total 1,956,148$ 24,677$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $70,178 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31,Amount
2023 366,153$
2024 357,007
2025 329,738
2026 578,261
2027 230,134
Total 1,861,293$
City of St. Joseph
Notes to Basic Financial Statements
71
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
E. Long-Term Expected Return on Investment
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:
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 %
Target Allocation Long-Term Asset Class
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used
in the determination of the total liability is 6.5%. This assumption is based on a review of inflation and
investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An
investment return of 6.5% was deemed to be within that range of reasonableness for financial reporting
purposes.
Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire
Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees. The Police
and Fire Plan benefit increase is fixed at 1% per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25%
after one year of service to 3.0% after 27 years of service and 6.0% per year thereafter. In the Police and
Fire Plan, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years
of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit PERA’s experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020, actuarial valuation. The
most recent four-year experience study for the Police and Fire Plan was completed in 2020 and was
adopted by the Board and became effective with the July 1, 2021, actuarial valuation.
City of St. Joseph
Notes to Basic Financial Statements
72
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
F. Actuarial Methods and Assumptions (Continued)
The following changes in actuarial assumptions and plan provisions occurred in 2022:
General Employees Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021
Changes in Plan Provisions
There have been no changes since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the previous valuation.
G. Discount Rate
The discount rate for the General Employee Plan used to measure the total pension liability in 2022 was
6.5%. 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 positions of the General Employees Fund and the Police and Fire Fund
were projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods
of projected benefit payments to determine the total pension liability.
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in the fiscal year
ended June 30, 2061, projected benefit payments exceed the fund’s projected fiduciary net position.
Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the
weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO
AA Index"). The resulting equivalent single discount rate of 5.4% for the Police and Fire Fund was
determined to give approximately the same present value of projected benefits when applied to all years
of projected benefits as the present value of projected benefits using 6.5% applied to all years of
projected benefits through the point of asset depletion and 3.69% thereafter.
City of St. Joseph
Notes to Basic Financial Statements
73
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees’ Retirement Association (Continued)
H. Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate
(5.5%)
City's proportionate share of
the General Employees Fund
net pension liability 1,939,067$ 1,227,605$ 644,097$
1% Decrease in Current 1% Increase in
City's proportionate share of
the Police and Fire Fund
net pension liability (asset) 4,155,511$ 2,745,862$ 1,606,246$
Discount Rate
(6.5%)
Discount Rate
(7.5%)
Discount Rate
(4.4%)
Discount Rate
(5.4%)
Discount Rate
(6.4%)
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.
Public Employees Defined Contribution Plan (Defined Contribution Plan)
All of the City’s council members are covered by the Defined Contribution Plan, a multiple-employer
deferred compensation plan administered by PERA. The Defined Contribution Plan 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.
City of St. Joseph
Notes to Basic Financial Statements
74
NOTE 10 – PENSION PLANS (CONTINUED)
Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued)
The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan benefits
depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses;
therefore, there is no future liability to the City. 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 5% of salary which
is matched by the elected official’s employer. 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% of employer
contributions and twenty-five hundredths of 1% (.25%) of the assets in each member’s account annually.
Pension expense for the year is equal to the contributions made. Total contributions made by the City
during fiscal year 2022 were:
977$ 977$ 5% 5% 5%
Employee Employer Employee Employer Required Rate
Defined Benefit Pension Plan – Volunteer Fire Fighter’s Relief Association
A. Plan Description
The City of St. Joseph Volunteer Fire Department Relief Association is the administrator of a single
employer defined benefit pension plan established to provide benefits for members of the Relief
Association per Minnesota State Statutes.
The Association issues a publicly available financial report that includes financial statements and
required supplementary information. That report may be obtained by writing to the St. Joseph Volunteer
Fire Department Relief Association, 75 Callaway St E, St. Joseph, MN 56374.
B. Benefits Provided
Volunteer firefighters of the City are member of Joseph Volunteer Fire Department Relief Association.
Full retirement benefits are payable to members who have reached age 50 and have completed 20 years of
service for lump sum service pension. Partial benefits are payable to members who have reached 50 years
and have completed 10 years of service. Disability benefits and widow and children’s survivor benefits
are also payable to members, or their beneficiaries based upon requirements set forth in the bylaws. These
benefit provisions and all other requirements are consistent with enabling state statutes.
City of St. Joseph
Notes to Basic Financial Statements
75
NOTE 10 – PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan – Volunteer Fire Fighter’s Relief Association (Continued)
C. Employees Covered by Benefit Terms
At December 31, 2022, the following employees were covered by the benefit terms:
Inactive members entitled to but not yet receiving benefits 5
Active members 26
Total 31
D. Contributions.
Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The
minimum support rates from the municipality and from State aids are determined as the amount required
to meet the normal cost plus amortizing any existing prior service costs over a ten-year period. The
City’s obligation is the financial requirement for the year less state aids. Any additional payments by the
City shall be used to amortize the unfunded liability of the relief association. The Association is
comprised of volunteers: therefore, there are no payroll expenditures (i.e., there are no covered payroll
percentage calculations). During the year, the City recognized as revenue and as an expenditure an on
behalf payment of $61,568 made by the State of Minnesota for the Relief Association. The City also
contributed $6,000 to the Relief Association.
E. Net Pension Liability
The City’s net pension liability was measured as of December 31, 2022, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that date.
The total pension liability in the December 31, 2022, actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50 %
Investment rate of return 4.75 %, net of pensions plan investment
expense including inflation
The value of death benefits is similar to the value of the retirement pension. Mortality rates for active
members, retirees, and disabled were based on Pub-2010 tables, with mortality improvement scale MP-
2021, with slight adjustments for male rates.
The long-term return on assets has been set based on the plan’s target investment allocation along with
long-term return expectations by asset class. When there is sufficient historical evidence of market
outperformance, historical average returns may be considered. Best estimates of arithmetic real rates of
return for each major asset class included in the pension plan’s target asset allocation as of the
measurement date are summarized in the table on the following page.
City of St. Joseph
Notes to Basic Financial Statements
76
NOTE 10 – PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan – Volunteer Fire Fighter’s Relief Association (Continued)
E. Net Pension Liability (Continued)
Asset Class
Domestic equity 45 % 4.10 %
International equity 10 4.64
Fixed income 40 1.05
Real estate and alternatives - 3.54
Cash and equivalents 5 -0.45
Total 100 %
Target Allocation
Long-Term Expected
Real Rate of Return
The discount rate used to measure the total pension liability was 4.75%. 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 municipal bond rate. The equivalent single rate is the discount rate.
F. Changes in the Net Pension Liability
Total Plan Fiduciary Net Pension
Pension Net Liability
Liability Position (Asset)
(a) (b) (a) - (b)
Balances at January 1, 2022 737,897$ 1,095,458$ (357,561)$
Changes for the year
Service cost 36,598 - 36,598
Interest cost 36,789 - 36,789
Differences between expected and actual experience (19,521) - (19,521)
Changes of assumptions (2,834) - (2,834)
State and local contributions - 67,568 (67,568)
Net investment income - (165,717) 165,717
Administrative expense - (8,947) 8,947
Net changes 51,032 (107,096) 158,128
Balances at December 31, 2021 788,929$ 988,362$ (199,433)$
Increase (Decrease)
City of St. Joseph
Notes to Basic Financial Statements
77
NOTE 10 – PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan – Volunteer Fire Fighter’s Relief Association (Continued)
F. Changes in the Net Pension Liability (Continued)
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net
pension liability of the City, calculated using the discount rate of 4.75%, as well as what the City’s net
pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(3.75%) or 1-percentage-point higher (5.75%) than the current rate:
1% Decrease Current 1% Increase
In Discount Rate Discount In Discount Rate
(3.75%) Rate (4.75%) (5.75%)
City's proportionate share of
the Plan net position liability (asset) (171,249)$ (199,433)$ (226,932)$
Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position
is available in the separately issued relief association financial report.
G. Pension Expense and Deferred Outflows of Resources, and Deferred Inflows of Resources
Related to Pensions
For the year ended December 31, 2022, the City recognized pension expense of $57,481. At
December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual liability -$ 52,124$
Changes of assumptions 52,020 2,505
Net difference between projected and actual earnings on
pension plan investments 104,532 -
Total 156,552$ 54,629$
City of St. Joseph
Notes to Basic Financial Statements
78
NOTE 10 – PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan – Volunteer Fire Fighter’s Relief Association (Continued)
G. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ending
December 31,Total
2023 8,988$
2024 24,282
2025 37,659
2026 42,505
2027 (4,476)
Therafter (7,035)
Total 101,923$
NOTE 11 – COMMITMENTS
The City has entered into contracts for construction as follows:
Commitment
2022 Street Improvements 589,678$ 561,218$ 28,460$
Pumper/Tanker 744,980 336,748 408,232
Community Center Construction Manager 718,462 10,049 708,413
Community Center Design 620,500 23,225 597,275
Community Center Capital Campaign 420,000 227,500 192,500
Total 1,934,880$
Project
Contract
Amount
Expended
through
12/31/22
The community center project will be financed with $4,000,000 State MN bonding and $6,000,000 from
local option sales tax money.
City of St. Joseph
Notes to Basic Financial Statements
79
NOTE 12 – TAX INCREMENT FINANCING
The City has entered into four Tax Increment Financing agreements which meet the criteria for
disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement
Disclosures. The City’s authority to enter into these agreements comes from Minnesota Statute 469. The
City entered into these agreements for the purpose of economic development.
Under each agreement, the City and developer agree on an amount of development costs to be
reimbursed to the developer by the City though tax revenues from the additional taxable value of the
property generated by the development (tax increment). A "pay-as-you-go" note is established for this
amount, on which the City makes payments for a fixed period of time with available tax increment
revenue after deducting for certain administrative costs.
During the year ended December 31, 2022, the City generated $151,291 in tax increment revenue and
made $136,161, in payments to developers.
In addition, the City had an abatement of $36,389 relating to a development agreement.
NOTE 13 – PRIOR PERIOD ADJUSTMENT
A prior period adjustment of $239,051 in the water fund, $83,056 in the sanitary sewer fund and
$253,375 in the storm water fund was made to reallocated construction in progress costs, which were
overbooked in the water fund and sanitary sewer fund and under booked in the storm water fund in the
previous year.
NOTE 14 – SUBSEQUENT EVENTS
In April 2021 the City approved selling a portion of their pooled capacity in the St. Cloud wastewater
treatment facility to the City of Foley. The City of St. Joseph received reimbursements from the City of
Foley in 2022 of $1,449,288. The City of St. Joseph plans to use the reimbursements for future sewer
improvements. The City has this recorded in unearned revenue and will recognize the revenue in 2023
when the City of Foley connects to the sewer system.
NOTE 15 – NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 96, Subscription-Based Information Technology Arrangements establishes that a
Subscription-Based Information Technology Arrangement (SBITA) results in a right-to-use subscription
asset and a corresponding liability. Under this statement, a governmental entity generally should
recognize a right-to-use subscription asset – an intangible asset – and a corresponding subscription
liability. This statement will be effective for the year ending December 31, 2023.
80
REQUIRED SUPPLEMENTARY INFORMATION
See notes to required supplementary information. 81
City's Covered
Payroll
2015 0.0138% 715,188$ -$ 715,188$ 799,773$ 89.42% 78.19%
2016 0.0135% 1,096,133 14,341 1,110,474 839,240 130.61% 68.91%
2017 0.0142% 906,519 11,418 917,937 916,373 98.92% 75.90%
2018 0.0142% 787,758 25,900 813,658 955,440 82.45% 79.53%
2019 0.0135% 746,385 23,166 769,551 956,520 78.03% 80.23%
2020 0.0145% 869,341 26,723 896,064 1,031,520 84.28% 79.06%
2021 0.0152% 649,108 19,868 668,976 1,096,507 59.20% 87.00%
2022 0.0155% 1,227,605 36,093 1,263,698 1,164,720 105.40% 76.67%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
For Fiscal
Year Ended
June 30,
City's
Proportion of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liablility and
the State's
Proportionate
Share of the
Net Pension
Liablility
Associated
with the City
City's Covered
Payroll
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
2015 0.0570% 647,653$ N/A 647,653$ 505,160$ 128.21% 86.61%
2016 0.0540% 2,167,114 N/A 2,167,114 518,580 417.89% 63.88%
2017 0.0540% 729,064 N/A 729,064 554,975 131.37% 85.43%
2018 0.0581% 614,057 N/A 614,057 612,154 100.31% 88.84%
2019 0.0559% 587,566 N/A 587,566 576,684 101.89% 89.26%
2020 0.0555% 726,554 17,262$ 743,816 613,525 121.24% 87.19%
2021 0.0618% 471,468 21,453 492,921 730,853 67.44% 93.66%
2022 0.0631% 2,745,862 120,034 2,865,896 767,124 373.59% 70.53%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Last Ten Years
For Fiscal
Year Ended
June 30,
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liability and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City
Public Employees Police and Fire Retirement Fund
of Net Pension Liability
City of St. Joseph
Schedule of City's Proportionate Share
of Net Pension Liability
Last Ten Years
Schedule of City's Proportionate Share
General Employees Retirement Fund
City's
Proportionate
Share
(Percentage)
of the Net
Pension
Liability
(Asset)
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
See notes to required supplementary information. 82
2015 57,804$ 57,804$ -$ 770,720$ 7.50%
2016 66,294 66,294 - 883,920 7.50%
2017 69,820 69,820 - 930,933 7.50%
2018 71,452 71,452 - 952,693 7.50%
2019 76,798 76,798 - 1,023,973 7.50%
2020 90,784 90,784 - 1,210,453 7.50%
2021 91,994 91,994 - 1,226,587 7.50%
2022 93,278 93,278 - 1,243,707 7.50%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
2015 85,925$ 85,925$ -$ 530,401$ 16.20%
2016 89,587 89,587 - 553,006 16.20%
2017 93,325 93,325 - 576,080 16.20%
2018 97,377 97,377 - 601,093 16.20%
2019 106,850 106,850 - 630,383 16.95%
2020 118,036 118,036 - 666,870 17.70%
2021 131,669 131,669 - 743,893 17.70%
2022 140,356 140,356 - 792,972 17.70%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Last Ten Years
Contributions
as a Percentage
of Covered
Payroll
Statutorily
Required
Contribution
Statutorily
Required
Contribution
Contributions
in Relation to
the Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
Contributions
in Relation to
the Statutorily
Required
Contributions
Fiscal Year
Ending
December 31,
City's Covered
Payroll
Contributions
as a Percentage
of Covered
Payroll
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Fiscal Year
Ending
December 31,
City of St. Joseph
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contribution
Deficiency
(Excess)
City's Covered
Payroll
See notes to required supplementary information. 83
2015 2016
Total Pension Liability (TPL)
Service cost 20,898$ 25,691$
Interest 29,709 35,786
Differenced between expected and actual experience - (29,935)
Changes of assumptions 55,033 56,691
Changes of benefit terms 31,883 -
Benefit payments, including refunds, or member contributions (41,168) (49,000)
Net change in total pension liability 96,355 39,233
Beginning of year 475,033 571,388
End of Year 571,388$ 610,621$
Plan Fiduciary Net Pension (FNP)
Contributions - employer 52,164$ 63,111$
Net investment income (41,979) 68,585
Benefit payments, including refunds of member contributions (41,168) (49,000)
Administrative expense (8,121) (7,724)
Net change in plan fiduciary net position (39,104) 74,972
Beginning of year 740,099 700,995
End of year 700,995$ 775,967$
Net pension liability (NPL)(129,607)$ (165,346)$
Plan fiduciary net position as a percentage of the total
pension liability 122.7% 127.1%
Covered employee payroll n/a n/a
Net pension liability as a percentage of covered payroll n/a n/a
The City implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December 31,
2015. The schedules within the Required Supplementary Information section required a ten year presentation, but does not require
retroactive reporting. Information prior to 2015 is not available. Additional years will be reported as they become available.
Measurement Date
City of St. Joseph
Schedule of Changes in Net Pension Liability
and Related Ratios - Fire Relief Association
84
2017 2018 2019 2020 2021 2022
25,641$ 27,172$ 28,180$ 30,292$ 34,333$ 36,598$
33,188 32,052 32,323 37,109 35,949 36,789
- (35,760) - (9,251) - (19,521)
4,299 8,441 - 15,976 - (2,834)
- - 28,541 59,260 32,566 -
(118,151) - - - (174,884) -
(55,023) 31,905 89,044 133,386 (72,036) 51,032
610,621 555,598 587,503 676,547 809,933 737,897
555,598$ 587,503$ 676,547$ 809,933$ 737,897$ 788,929$
58,310$ 56,565$ 58,653$ 62,075$ 63,830$ 67,568$
77,946 (50,418) 118,020 117,376 92,565 (165,717)
(118,151) - - - (174,884) -
(8,546) (7,582) (9,020) (8,297) (8,951) (8,947)
9,559 (1,435) 167,653 171,154 (27,440) (107,096)
775,967 785,526 784,091 951,744 1,122,898 1,095,458
785,526$ 784,091$ 951,744$ 1,122,898$ 1,095,458$ 988,362$
(229,928)$ (196,588)$ (275,197)$ (312,965)$ (357,561)$ (199,433)$
141.4% 133.5% 140.7% 138.6% 148.5% 125.3%
n/a n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a n/a
Measurement Date
See notes to required supplementary information. 85
2015 2016
Employer
Statutorily determined contribution (SDC) -$ -$
Contribution in relation to the SDC 3,000 3,000
Contribution deficiency (excess) (3,000)$ (3,000)$
Non-employer
2% aid 52,164$ 60,111$
Covered employee payroll n/a n/a
Contributions as a percentage of covered employee payroll n/a n/a
The Association implemented the Provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended
December 31, 2015. The schedules within the Required Supplementary Information section required a ten year presentation, but
does not require retroactive reporting. Information prior to 2015 is not available. Additional years will be reported as they become
available.
City of St. Joseph
Schedule of Employer Contributions
and Non-Employer Contributing
Entities - Fire Relief Association
86
2017 2018 2019 2020 2021 2022
-$ -$ -$ -$ -$ -$
3,000 3,000 3,000 3,000 3,000 6,000
(3,000)$ (3,000)$ (3,000)$ (3,000)$ (3,000)$ (6,000)$
55,310$ 53,565$ 55,653$ 59,075$ 60,830$ 61,568$
n/an/an/an/an/an/a
n/an/an/an/an/an/a
City of St. Joseph
Notes to Required Supplementary Information
87
General Employees Fund
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.0%.
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 changes 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 and Survivor option
changed from 35% to 45%. The assumed number of married female new retires electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
City of St. Joseph
Notes to Required Supplementary Information
88
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State’s special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per year
thereafter to 1.25% per year.
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Postretirement benefit increases were changed from 1.00% per year with a provision to increase
to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of
Living Adjustment, not less than 1.00% and not more than 1.50%, 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 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
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.
City of St. Joseph
Notes to Required Supplementary Information
89
General Employees Fund (Continued)
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year thereafter.
Changes in Plan Provisions
On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State’s contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
City of St. Joseph
Notes to Required Supplementary Information
90
Police and Fire Fund
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The inflation assumption was changed from 2.5% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.0%.
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 MP-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 resulted 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 resulted in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes since the prior valuation.
City of St. Joseph
Notes to Required Supplementary Information
91
Police and Fire Fund (Continued)
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Postretirement benefit increases were changed to 1.00% for all years, with no trigger.
An end date of July 1, 2048, was added to the existing $9.0 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019,
and 11.80% of pay, effective January 1, 2020.
Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019,
and 17.70% of pay, effective January 1, 2020.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, 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 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016, experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% 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% 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% to 60%.
City of St. Joseph
Notes to Required Supplementary Information
92
Police and Fire Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued
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% for all years to 1% per
year through 2064 and 2.5% thereafter.
The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The single discount rate changed from 7.90% to 5.60%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter.
Changes in Plan Provisions
The post-retirement benefit increase to be paid after attainment of the 90% funding threshold was
changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
City of St. Joseph
Notes to Required Supplementary Information
93
Fire Relief Association
2022 Changes
Changes in Plan Provisions
The disability, mortality and withdrawal assumptions were updated from the rates used in the
July 1, 2020 Minnesota PERA Police & Fire Plan actuarial valuation to the rates use in the July
1, 2022 Minnesota PERA Police & Fire Plan actuarial valuation.
The inflation assumption decreased from 2.50% to 2.25%.
2021 Changes
Changes in Plan Provisions
The benefit level increased from $2,300 to $2,400 per year.
2020 Changes
Changes in Plan Provisions
The benefit level increased from $2,100 to $2,300 per year.
Changes in Actuarial Assumptions
The discount rate was changed from 5.25% to 4.75%.
94
REQUIRED SUPPLEMENTARY INFORMATION
95
Original
Budget
Final
Budget
Actual
Amounts
Revenues
Property taxes 2,095,595$ 2,095,595$ 2,102,211$ 6,616$
Miscellaneous taxes 4,000 4,000 731 (3,269)
Special assessments 4,000 4,000 4,891 891
Franchise fees 138,200 138,200 140,259 2,059
Licenses and permits 185,720 185,720 307,357 121,637
Intergovernmental revenue
Local government aid 1,217,349 1,217,349 1,217,348 (1)
Police aid 85,500 85,500 101,131 15,631
Federal grants 452,270 452,270 437,117 (15,153)
State grants 86,245 86,245 99,798 13,553
Other grants and aids 26,000 26,000 27,826 1,826
Total intergovernmental revenue 1,867,364 1,867,364 1,883,220 15,856
Charges for services
General government 18,175 18,175 12,874 (5,301)
Public safety 1,800 1,800 2,987 1,187
Public works 5,060 5,060 4,586 (474)
Culture and recreation 18,750 18,750 32,610 13,860
Total charges for services 43,785 43,785 53,057 9,272
Fines and forfeitures 66,000 66,000 78,924 12,924
Miscellaneous revenues
Investment income 35,000 35,000 (113,653) (148,653)
Contributions and donations 3,000 3,000 7,828 4,828
Other 47,800 47,800 73,360 25,560
Total miscellaneous revenues 85,800 85,800 (32,465) (118,265)
Total revenues 4,497,464 4,490,464 4,538,185 47,721
Expenditures
General government
Mayor and council 81,955 81,955 101,101 19,146
Administrative and finance 592,190 592,190 653,209 61,019
Other general government 338,890 338,890 324,556 (14,334)
Capital outlay 109,250 109,250 80,524 (28,726)
Total general government 1,122,285 1,122,285 1,159,390 37,105
City of St. Joseph
Schedule of Revenues, Expenditures, and
Changes in Fund Balance -
Budget and Actual - General Fund
Year Ended December 31, 2022
Variance with
Final Budget -
Over (Under)
96
Original
Budget
Original and
Final Budget
Actual
Amounts
Expenditures
Public safety
Police
Current 1,677,100$ 1,677,100$ 1,572,170$ (104,930)$
Capital outlay 68,050 68,050 121,249 53,199
Total police 1,745,150 1,745,150 1,693,419 (51,731)
Fire
Current 10,000 10,000 15,044 5,044
Capital outlay 96,000 96,000 179,228 83,228
Total fire 106,000 106,000 194,272 88,272
Other
Current 99,040 99,040 114,402 15,362
Capital outlay 1,500 1,500 2,265 765
Total other 100,540 100,540 116,667 16,127
Total public safety 1,951,690 1,951,690 2,004,358 52,668
Public works
Streets and highways
Street maintenance and storm sewers 484,880 487,380 543,381 56,001
Snow and ice removal 146,975 161,975 160,786 (1,189)
Street engineering 45,000 45,000 12,333 (32,667)
Capital outlay 188,500 171,000 111,187 (59,813)
Total public works 865,355 865,355 827,687 (37,668)
Culture and recreation
Current 776,205 778,705 574,640 (204,065)
Capital outlay 25,500 23,000 423 (22,577)
Total culture and recreation 801,705 801,705 575,063 (226,642)
Total expenditures 4,741,035 4,741,035 4,566,498 (174,537)
Excess of revenues over
(under) expenditures (243,571) (250,571) (28,313) 222,258
Other Financing Sources (Uses)
Insurance recoveries - - 30,198 30,198
Sale of property 7,000 7,000 14,850 7,850
Transfers in 13,340 13,340 69,391 56,051
Transfers out - - (259,064) (259,064)
Total other financing sources (uses) 20,340 20,340 (144,625) (164,965)
Net change in fund balances (223,231)$ (230,231)$ (172,938) 57,293$
Fund Balances
Beginning of year 4,189,204
End of year 4,016,266$
Variance with
Final Budget -
Over (Under)
City of St. Joseph
Schedule of Revenues, Expenditures, and
Changes in Fund Balance -
Budget and Actual - General Fund
Year Ended December 31, 2022
97
Economic
Development
Authority
(250)
TIF 2-1
Millstream
Shops and
Lofts (257)
TIF 2-3 Bayou
Blues/ Alley
Flat (259)
Assets
Cash and investments 47,521$ 38,005$ 18,064$
Taxes receivable - delinquent 877 - -
Special assessments receivable
Delinquent - - -
Deferred - - -
Accounts receivable - - -
Interest receivable 394 193 20
Due from other funds 6,800 - -
Due from other governments 5,680 - -
Notes receivable - - -
Total assets 61,272$ 38,198$ 18,084$
Liabilities
Accounts payable 6,195$ -$ 17,959$
Contracts payable - - -
Due to other funds - - 6,800
Salaries and benefits payable 793 - -
Total liabilities 6,988 - 24,759
Deferred Inflows of Resources
Unavailable revenue - property taxes 877 - -
Unavailable revenue - special assessments - - -
Total deferred inflows of resources 877 - -
Fund Balances
Restricted - 38,198 -
Committed 53,407 - -
Assigned - - -
Unassigned - - (6,675)
Total fund balances 53,407 38,198 (6,675)
Total liabilities, deferred inflows
of resources, and fund balances 61,272$ 38,198$ 18,084$
City of St, Joseph
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2021
Special Revenue
98
TIF 4-1
Fortitude
Senior
Housing (253)
State
Collected
Sales Tax
(200)
Park
Dedication
(205)
Charitable
Gambling
(215)
Lodging Tax
(220)
Revolving
Loan (251) Deed Housing (225)
21,997$ 1,349,442$ 298,893$ 428$ 19,169$ 454,232$ 53,695$
- - - - - - -
- - - - - - -
- - - - - - -
- - 31 - 1,252 - -
102 5,388 1,404 2 94 2,115 238
- - - - - - -
- 183,622 317 - - - -
- - - - - 54,802 -
22,099$ 1,538,452$ 300,645$ 430$ 20,515$ 511,149$ 53,933$
-$ -$ 303$ -$ 1,390$ -$ -$
- 5,405 - - - - -
- - - - - - -
- - - - - - -
- 5,405 303 - 1,390 - -
- - - - - - -
- - - - - - -
- - - - - - -
22,099 1,533,047 300,342 430 19,125 84,095 53,933
- - - - - 427,054 -
- - - - - - -
- - - - - - -
22,099 1,533,047 300,342 430 19,125 511,149 53,933
22,099$ 1,538,452$ 300,645$ 430$ 20,515$ 511,149$ 53,933$
Special Revenue
99
Special
Revenue
St. Joseph Fire
Services (210)
G.O. Capital
Improvement
Plan Bonds of
2016A (301)
G.O.
Improvement
Bonds of
2016B (304)
G.O.
Improvement
Bonds of
2017B (305)
Assets
Cash and investments 778,425$ 261,426$ 203,284$ 12,600$
Taxes receivable - delinquent 19 1,256 22 92
Special assessments receivable
Delinquent - - - -
Deferred - - 557,856 37,428
Accounts receivable - - 9,577 -
Interest receivable 3,768 1,143 1,254 137
Due from other funds - - - -
Due from other governments 5,260 2,009 8 241
Notes receivable - - - -
Total assets 787,472$ 265,834$ 772,001$ 50,498$
Liabilities
Accounts payable 8,020$ -$ -$ -$
Contracts payable - - - -
Due to other funds - - - -
Salaries and benefits payable 81,634 - - -
Total liabilities 89,654 - - -
Deferred Inflows of Resources
Unavailable revenue - property taxes 19 1,256 22 92
Unavailable revenue - special assessments - - 557,856 37,428
Total deferred inflows of resources 19 1,256 557,878 37,520
Fund Balances
Restricted 697,799 264,578 214,123 12,978
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balances 697,799 264,578 214,123 12,978
Total liabilities, deferred inflows
of resources, and fund balances 787,472$ 265,834$ 772,001$ 50,498$
City of St. Joseph
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2021
Debt Service
100
2018A
Equipment
Certificate
(306)
G.O.
Improvement
Bonds of
2019A (307)
2021
Improvement
Bond [MN
St/Overlays]
(311)
2020A
Equipment
Certificate
(309)
G.O.
Improvement
Bond of 2020B
(310)
G.O. Capital
Improvement
Bonds of
2020B (312)
1,875$ 240,892$ 71,281$ 2,076$ 97,866$ 12,428$
260 608 138 333 - -
- - 720 - - -
- 314,251 351,343 - 24,840 -
- - - - - -
60 1,293 6,550 147 2,447 169
- - - - - -
445 2,116 679 355 508 453
- - - - - -
2,640$ 559,160$ 430,711$ 2,911$ 125,661$ 13,050$
-$ -$ -$ 3,705$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - 3,705 - -
260 608 138 333 - -
- 314,251 352,063 - 24,840 -
260 314,859 352,201 333 24,840 -
2,380 244,301 78,510 - 100,821 13,050
- - - - - -
- - - - - -
- - - (1,127) - -
2,380 244,301 78,510 (1,127) 100,821 13,050
2,640$ 559,160$ 430,711$ 2,911$ 125,661$ 13,050$
Debt Service
101
G.O.
Improvement
Bonds of
2013A/2020B
(313)
Crossover
Improvement
Bonds of
2014A/2020C
(314)
G.O.
Abatement
Bonds 2022A
(302)
G.O.
Improvement
Bonds of 2022
(315)
Assets
Cash and investments 27,010$ 51,320$ 204,843$ 103,782$
Taxes receivable - delinquent 181 811 - -
Special assessments receivable
Delinquent 140 - - -
Deferred 7,426 61,172 - 162,719
Accounts receivable - - - -
Interest receivable 213 502 12,770 776
Due from other funds - - - -
Due from other governments 302 925 - -
Notes receivable - - - -
Total assets 35,272$ 114,730$ 217,613$ 267,277$
Liabilities
Accounts payable -$ -$ 16,400$ 1,600$
Contracts payable - - - -
Due to other funds - - - -
Salaries and benefits payable - - - -
Total liabilities - - 16,400 1,600
Deferred Inflows of Resources
Unavailable revenue - property taxes 181 811 - -
Unavailable revenue - special assessments 7,566 61,172 - 162,719
Total deferred inflows of resources 7,747 61,983 - 162,719
Fund Balances
Restricted 27,525 52,747 201,213 102,958
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total fund balances 27,525 52,747 201,213 102,958
Total liabilities, deferred inflows
of resources, and fund balances 35,272$ 114,730$ 217,613$ 267,277$
City of St. Joseph
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2021
Debt Service
102
Debt Service
G.O.
Equipment
Certificate
2022A (316)
2021 Street
Overlay Project
(411)
2019 Industrial
Park Project
(408)
2020 20th
Avenue
Watermain
Loop (410)
2022 Street
Improvement
Project (415)
2022 Fire
Truck
Equipment
Certificate
(416)
22,325$ 903,345$ 227,849$ 396,194$ 59,379$ 355,811$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
873 - - - - -
- - - - - -
- 149,000 - - - -
- - - - - -
23,198$ 1,052,345$ 227,849$ 396,194$ 59,379$ 355,811$
2,000$ 14,475$ -$ -$ 2,218$ -$
- 493,743 - 10,091 16,867 -
- - - - - -
- - - - - -
2,000 508,218 - 10,091 19,085 -
- - - - - -
- - - - - -
- - - - - -
21,198 - - - - -
- - - - - -
- 544,127 227,849 386,103 40,294 355,811
- - - - - -
21,198 544,127 227,849 386,103 40,294 355,811
23,198$ 1,052,345$ 227,849$ 396,194$ 59,379$ 355,811$
Capital Projects
103
2023 Street
Imp/Elm St
ROW Acq
(417)
Water Access
Fund (501)
Sewer Access
Fund (502)
Total
Governmental
Funds
Assets
Cash and investments 9,676$ 359,266$ 10,058$ 6,714,457$
Taxes receivable - delinquent - - - 4,597
Special assessments receivable
Delinquent - - - 860
Deferred - - - 1,517,035
Accounts receivable - 3,575 3,575 18,010
Interest receivable - - - 42,052
Due from other funds - - - 6,800
Due from other governments - - - 351,920
Notes receivable - - - 54,802
Total assets 9,676$ 362,841$ 13,633$ 8,710,533$
Liabilities
Accounts payable 9,676$ -$ -$ 83,941$
Contracts payable - - - 526,106
Due to other funds 9,676 - - 16,476
Salaries and benefits payable - - - 82,427
Total liabilities 19,352 - - 708,950
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - 4,597
Unavailable revenue - special assessments - - - 1,517,895
Total deferred inflows of resources - - - 1,522,492
Fund Balances
Restricted - - - 4,085,450
Committed - - - 480,461
Assigned - 362,841 13,633 1,930,658
Unassigned (9,676) - - (17,478)
Total fund balances (9,676) 362,841 13,633 6,479,091
Total liabilities, deferred inflows
9,676$ 362,841$ 13,633$ 8,710,533$
City of St. Joseph
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2021
Capital Projects
104
(THIS PAGE LEFT BLANK INTENIONALLY)
105
Economic
Development
Authority (250)
TIF 2-1
Millstream
Shops and
Lofts (257)
TIF 2-3 Bayou
Blues/Alley
Flat (259)
Revenues
Property taxes 114,941$ -$ -$
Tax increments - 41,456 39,909
Sales taxes - - -
Lodging taxes - - -
Special assessments - - -
Intergovernmental 4,457 - -
Charges for services 4,061 - -
Miscellaneous
Investment income (2,211) (1,085) (113)
Contributions and donations - - -
Revolving loan repayments - - -
Other - - -
Total revenues 121,248 40,371 39,796
Expenditures
Current
Public safety - - -
Culture and recreation - - -
Economic development 109,046 38,385 38,025
Debt service
Principal - - -
Interest and other charges - - -
Capital outlay
General government - - -
Public safety - - -
Public works - - -
Culture and recreation - - -
Economic development - - -
Total expenditures 109,046 38,385 38,025
Excess of revenues over
(under) expenditures 12,202 1,986 1,771
Other Financing Sources (Uses)
Sale of property - - -
Bonds issued - - -
Bond premium - - -
Transfers in - - -
Transfers out (50,000) - -
Total other financing sources (uses) (50,000) - -
Net change in fund balances (37,798) 1,986 1,771
Fund Balances
Beginning of year 91,205 36,212 (8,446)
End of year 53,407$ 38,198$ (6,675)$
City of St. Joseph
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended December 31, 2022
Special Revenue
106
TIF 4-1
Fortitude
Senior Housing
(253)
State Collected
Sales Tax (200)
Park
Dedication
(205)
Charitable
Gambling (215)
Lodging Tax
(220)
Revolving
Loan (251)
-$ -$ 30,000$ -$ -$ -$
69,926 - - - - -
- 649,225 - - - -
- - - - 15,757 -
- - - - - -
- - - - - -
- - 182 - - -
(571) (30,254) (7,881) (14) (526) (11,714)
- - 1,033 1,000 - -
- - - - - 69,054
- - - - 1,444 -
69,355 618,971 23,334 986 16,675 57,340
- - - - - -
- - - 1,207 - -
64,092 - - - 18,852 -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 23,411 86,871 - - -
- - - - - -
64,092 23,411 86,871 1,207 18,852 -
5,263 595,560 (63,537) (221) (2,177) 57,340
- - - - - -
- - - - - -
- - - - - -
- - 99,700 - - 50,000
- (5,000) - - - -
- (5,000) 99,700 - - 50,000
5,263 590,560 36,163 (221) (2,177) 107,340
16,836 942,487 264,179 651 21,302 403,809
22,099$ 1,533,047$ 300,342$ 430$ 19,125$ 511,149$
Special Revenue
107
Deed Housing
(225)
St. Joseph Fire
Services (210)
G.O.
Improvement
Bonds of
2010B (345)
G.O.
Improvement
Bonds of
2015A (351)
Revenues
Property taxes -$ 181,646$ 12,000$ 28,000$
Tax increments - - - -
Sales taxes - - - -
Lodging taxes - - - -
Special assessments - - 16,372 21,231
Intergovernmental - 72,066 - -
Charges for services - 127,411 - -
Miscellaneous
Investment income (1,340) (21,159) (2,504) (3,021)
Contributions and donations - 3,964 - -
Revolving loan repayments - - - -
Other 12,861 4,793 - -
Total revenues 11,521 368,721 25,868 46,210
Expenditures
Current
Public safety - 396,430 - -
Culture and recreation - - - -
Economic development 782 - - -
Debt service
Principal - - 240,000 245,000
Interest and other charges - - 8,148 7,498
Capital outlay
General government - - - -
Public safety - 19,968 - -
Public works - - - -
Culture and recreation - - - -
Economic development - - - -
Total expenditures 782 416,398 248,148 252,498
Excess of revenues over
(under) expenditures 10,739 (47,677) (222,280) (206,288)
Other Financing Sources (Uses)
Sale of property - 70,000 - -
Bonds issued - - - -
Bond premium - - - -
Transfers in - - 143,000 119,364
Transfers out - (17,000) (15,348) -
Total other financing sources (uses) - 53,000 127,652 119,364
Net change in fund balances 10,739 5,323 (94,628) (86,924)
Fund Balances
Beginning of year 43,194 692,476 94,628 86,924
End of year 53,933$ 697,799$ -$ -$
City of St. Joseph
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
Year Ended December 31, 2022
Debt ServiceSpecial Revenue
108
G.O. Capital
Improvement
Plan Bonds of
2016A (301)
G.O.
Improvement
Bonds of
2016B (304)
Capital
Improvement
Bonds of
2017A (303)
G.O.
Improvement
Bonds of
2017B (305)
2018A
Equipment
Certificate
(306)
G.O.
Improvement
Bonds of
2019A (307)
254,667$ 993$ -$ 19,969$ 56,414$ 129,804$
- - - - - -
- - - - - -
- - - - - -
- 31,921 - 8,585 - 91,876
- - - - - -
- - - - - -
(5,286) (7,043) (1,130) (767) (338) (7,261)
- - - - - -
- - - - - -
- - 202,720 - - -
249,381 25,871 201,590 27,787 56,076 214,419
- - - - - -
- - - - - -
- - - - - -
195,000 50,000 168,000 34,000 54,000 155,000
78,605 11,762 2,008 6,067 3,236 58,313
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
273,605 61,762 170,008 40,067 57,236 213,313
(24,224) (35,891) 31,582 (12,280) (1,160) 1,106
- - - - - -
- - - - - -
- - - - - -
254,894 5,000 - - - 110,833
- - (104,894) - - -
254,894 5,000 (104,894) - - 110,833
230,670 (30,891) (73,312) (12,280) (1,160) 111,939
33,908 245,014 73,312 25,258 3,540 132,362
264,578$ 214,123$ -$ 12,978$ 2,380$ 244,301$
Debt Service
109
2021
Improvement
Bond [MN
St/Overlays]
(311)
2020A
Equipment
Certificate
(309)
G.O.
Improvement
Bond of 2020B
(310)
G.O. Capital
Improvement
Bonds of
2020B (312)
Revenues
Property taxes 39,862$ 44,788$ 65,000$ 58,000$
Tax increments - - - -
Sales taxes - - - -
Lodging taxes
Special assessments 274,106 - 81,640 -
Intergovernmental - - - -
Charges for services - - - -
Miscellaneous
Investment income (36,779) (827) (13,740) (951)
Contributions and donations - - - -
Revolving loan repayments - - - -
Other - - - -
Total revenues 277,189 43,961 132,900 57,049
Expenditures
Current
Public safety - - - -
Culture and recreation - - - -
Economic development - - - -
Debt service
Principal 260,000 43,000 65,000 60,000
Interest and other charges 131,792 2,629 11,632 13,003
Capital outlay
General government - - - -
Public safety - 3,705 - -
Public works - - - -
Culture and recreation - - - -
Economic development - - - -
Total expenditures 391,792 49,334 76,632 73,003
Excess of revenues over
(under) expenditures (114,603) (5,373) 56,268 (15,954)
Other Financing Sources (uses)
Sale of property - - - -
Bonds issued - - - -
Bond premium - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances (114,603) (5,373) 56,268 (15,954)
Fund Balances
Beginning of year 193,113 4,246 44,553 29,004
End of year 78,510$ (1,127)$ 100,821$ 13,050$
Debt Service
City of St. Joseph
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
December 31, 2021
110
Capital Projects
G.O.
Improvement
Bonds of
2013A/2020B
(313)
Taxable
Crossover
Improvement
Bonds of
2014A/2020C
(314)
G.O.
Abatement
Bonds 2022A
(302)
G.O.
Improvement
Bonds of 2022
(315)
G.O.
Equipment
Certificate
2022A (316)
2021 Street
Overlay Project
(411)
29,898$ 116,564$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
8,351 10,764 - 53,258 - -
- - - - - 400,558
- - - - - -
(1,194) (2,820) (71,699) (4,357) (4,901) -
- - - - - -
- - - - - -
- - - - - -
37,055 124,508 (71,699) 48,901 (4,901) 400,558
- - - - - -
- - - - - -
- - - - - -
45,000 145,000 - - - -
2,236 13,952 130,836 12,179 13,507 -
- - - - - -
- - - - - -
- - - - - 781,783
- - - - - -
- - - - - -
47,236 158,952 130,836 12,179 13,507 781,783
(10,181) (34,444) (202,535) 36,722 (18,408) (381,225)
- - - - - -
- - 403,748 21,236 22,606 -
- - - 45,000 - -
- - - - 17,000 -
- - - - - -
- - 403,748 66,236 39,606 -
(10,181) (34,444) 201,213 102,958 21,198 (381,225)
37,706 87,191 - - - 925,352
27,525$ 52,747$ 201,213$ 102,958$ 21,198$ 544,127$
Debt Service
111
2019 Street
Overlay Project
(407)
2020
Equipment
Certificates
(409)
2020 20th
Avenue
Watermain
Loop (410)
2022 Street
Improvement
Project (415)
Revenues
Property taxes -$ -$ -$ -$
Tax increments - - - -
Sales taxes - - - -
Lodging taxes - - - -
Special assessments - - - 133,667
Intergovernmental - - - -
Charges for services - - - -
Miscellaneous
Investment income - - - -
Contributions and donations - - - -
Revolving loan repayments - - - -
Other - - - -
Total revenues - - - 133,667
Expenditures
Current
Public safety - - - -
Culture and recreation - - - -
Economic development - - - -
Debt service
Principal - - - -
Interest and other charges - - - -
Capital outlay
General government - 1,952 - -
Public safety - 13,115 - -
Public works - 2,285 2,697 670,404
Culture and recreation - 687 - -
Economic development - - - -
Total expenditures - 18,039 2,697 670,404
Excess of revenues over
(under) expenditures - (18,039) (2,697) (536,737)
Other Financing Sources (uses)
Sale of property - - - -
Bonds issued - - - 598,764
Bond premium - - - 5,217
Transfers in - - - -
Transfers out (110,833) - - (13,475)
Total other financing sources (uses) (110,833) - - 590,506
Net change in fund balances (110,833) (18,039) (2,697) 53,769
Fund Balances
Beginning of year 110,833 18,039 388,800 (13,475)
End of year -$ -$ 386,103$ 40,294$
Capital Projects
City of St. Joseph
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
December 31, 2021
112
2022 Fire
Truck
Equipment
Certificate
(416)
2023 Street
Imp/Elm St
ROW Acq
(417)
Water Access
Fund (501)
Sewer Access
Fund (502)
Total Other
Governmental
Funds
-$ -$ -$ -$ 1,182,546$
- - - - 151,291
- - - - 649,225
- - - - 15,757
- - - - 731,771
- - - - 477,081
- - 162,200 132,729 426,583
- - - - (241,486)
- - - - 5,997
- - - - 69,054
- - - - 221,818
- - 162,200 132,729 3,689,637
- - - - 396,430
- - - - 1,207
- - - - 269,182
- - - - 1,759,000
- - - - 507,403
- - - - 1,952
336,748 - - - 373,536
- 9,676 - - 1,466,942
- - - - 110,969
- - - - -
336,748 9,676 - - 4,886,621
(336,748) (9,676) 162,200 132,729 (1,196,984)
- - - - 70,000
637,394 - - - 1,683,748
55,165 - - - 105,382
- - - - 799,791
- - (180,000) (140,000) (636,550)
692,559 - (180,000) (140,000) 2,022,371
355,811 (9,676) (17,800) (7,271) 825,387
- - 380,641 20,904 5,653,704
355,811$ (9,676)$ 362,841$ 13,633$ 6,479,091$
Capital Projects
113
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114
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
Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of St. Joseph, Minnesota, as of and for the year ended December 31, 2022, and the related notes
to financial statements, which collectively comprise the City’s basic financial statements, and have
issued our report thereon dated June 21, 2023.
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 City’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 and therefore, material weaknesses or significant deficiencies
may exist that were not identified. We did identify a certain deficiency in internal control, as described
in the accompanying Schedule of Finding and Response on Internal Control that we consider to be a
material weakness, listed as audit finding 2022-001.
115
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.
City’s Response to Findings
The City’s response to the finding identified in our audit is described in the accompanying Schedule of
Finding and Response on Internal Control. The City’s response was not subjected to the auditing
procedures applied in the audit of the financial statements and, accordingly, we express no opinion on
the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result 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.
St. Cloud, Minnesota
June 21, 2023
116
Minnesota Legal Compliance
Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of St. Joseph
St. Joseph, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America, and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of St. Joseph, Minnesota, as of and for the year ended December 31, 2022, and the related notes
to financial statements, which collectively comprise the City’s basic financial statements, and have
issued our report thereon dated June 21, 2023.
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 Minnesota Statutes § 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.
St. Cloud, Minnesota
June 21, 2023
City of St. Joseph
Schedule of Finding and Response on
Internal Control
117
CURRENT AND PRIOR YEAR INTERNAL CONTROL FINDING
Material Weakness
Audit Finding 2022-001 – Improve Segregation of Accounting Duties
Adequate segregation of accounting duties is in place when the four areas of a transaction have been
separated: authorization, custody, recording, and reconciliation.
As part of this year’s audit, we reviewed the City’s documentation of its internal control over
significant areas including: cash receipts, cash disbursements, capital assets, payroll, and utility
billing. The lack of adequate segregation of accounting duties could adversely affect the City’s
ability to initiate, record, process, and report financial data consistent with the assertions of
management in the financial statements. Some of the areas in which we noticed a lack of segregation
or an overlap in duties are as follows:
Cash Receipts
The Accounting Technician enters cash and checks into the point-of-sale system, reconcile daily
receipts, and sends late notices/calculates penalties. The Police Records Specialist records police
receipts, receives payments, and reconciles the collections. A police officer takes the deposit to
the bank.
Cash Disbursements
The Finance Director is also an authorized signer and has access to the Mayor’s electronic
signature. The Administrator reviews and approves checks for payment. At year-end, the Finance
Director reconciles and records accounts and contracts payable.
Capital Assets
The Finance Director records, processes, reconciles, and posts journal entries related to capital
assets. Department heads review their listing for accuracy.
Payroll
The Finance Technician enters employee’s time, processes and posts payroll, generates a payroll
report, distributes paystubs to employees, and posts the journal entries related to payroll. In
addition, this same employee reconciles payroll accruals. The Finance Director reviews payroll
reports and time off balances and calculates compensated absences balances for the audit.
Utility Billing
The Account Technician enters new accounts into the utility billing system and uploads meter
readings via interfacing with electronic readers. The Account Technician enters any rate changes
to the system and can enter manual adjustments. The Account Technician calculates and enters
final bills, prints, and mails utility bills, reconciles receipts to billed amounts, and enters receipts
batches.
118
City of St. Joseph
Schedule of Finding and Response on
Internal Control
CURRENT AND PRIOR YEAR INTERNAL CONTROL FINDING (CONTINUED)
Material Weakness (Continued)
Audit Finding 2022-001 – Improve Segregation of Accounting Duties (Continued)
Cash Reconciliation and Access
The Finance Director performs the above noted responsibilities, while also reconciling cash, and
generating manual journal entries.
In addition, during our audit, we noted a prior period adjustment that was necessary to restate the
beginning balances of CIP between the enterprise funds.
City’s Response
The City Council and City staff are aware of the limited personnel handling the City’s financial matters.
The processes and internal controls are reviewed frequently to look for ways to improve internal
controls. The department heads, City Clerk, City Administrator and City Council each have active roles
in monitoring the financial matters of the City to provided additional oversight. It is unlikely complete
segregation of accountings duties will be achieved due to the cost of hiring several additional staff.
STAFF MEMO
Prepared by:
Lori Bartlett, Finance Director
Meeting Date:
6-27-23
☐ Consent Agenda Item
☒ Regular Agenda Item
Agenda Item #
7
Reviewed by:
City Administrator
Item:
Series 2023A Bond Issue
ACTION REQUESTED
Consider adoption of Resolution 2023-033 Approving the Issuance of General Obligation Bonds, Series
2023A.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
None
PREVIOUS COUNCIL ACTION
Council ordered improvements for the 2023 street improvements and purchase general city equipment
as budgeted in the five-year capital plan.
REFERENCE AND BACKGROUND
Tammy Omdal, bond financial advisor from Northland Securities, has been working with city staff on
the upcoming 2023A bond issue and provided the enclosed financial update. The 2023A bond issue
includes two parts, GO Improvement Bonds and Equipment Certificates. The GO Improvement Bonds
fund the 2023 street overlays in Northland Plats 3, 4, 5; Loso’s Add, Add 4, Add 5 and Townsite of St.
Joseph; and Elm Street E. The project also includes sewer main replacement and paving alleys in the
downtown block 2. The City includes two 5-year equipment certificates to purchase general city
equipment that is difficult to fully fund with general levies. In 2023, the equipment needs include
scanners, computers, mailing system, squads, defibulators, tractors, front-end loader, utility and
pickup trucks, and snow plow.
Attached you will find the following documents related to your upcoming bond issuance for
consideration at the council meeting:
- Trigger Resolutions – Authorizes the Mayor and Administrator to approve the 2023A bond
pricing. This allows the bond sale to occur and lock into the best rate. The bond sale summary
will be presented at the September 18th council meeting.
- Finance Plan – Provides a detailed overview of the series 2023A bond issue (for reference only;
no action needed).
BUDGET IMPACT
Up to $2,040,000 bond issue for 2023A Bonds
STAFF RECOMMENDED ACTION
Adopt Resolution 2023-033 Approving the issuance of General Obligation Bonds, Series 2023A
Financing Plan 2023A
SUPPORTING DATA/ATTACHMENTS
Financing Plan 2023A
Resolution 2023-033 Approving the Issuance of General Obligation Bonds, Series 2023A
Finance Plan
City of St. Joseph, Minnesota
$2,020,000
General Obligation Bonds, Series 2023A
June 27, 2023
150 South 5th Street, Suite 3300
Minneapolis, MN 55402
612-851-5900 800-851-2920
www.northlandsecurities.com
Member FINRA and SIPC | Registered with SEC and MSRB
Contents
Executive Summary
Issue Overview
Purpose
Authority
Structure
Security and Source of Repayment
Plan Rationale
Issuing Process
Attachment 1 – Preliminary Debt Service Schedules
Attachment 2 – Estimated Levy Schedules
Attachment 3 – Related Considerations
Bank Qualified
Arbitrage Compliance
Continuing Disclosure
Premiums
Rating
Attachment 4 – Calendar of Events
Attachment 5 - Risk Factors
Northland Securities, Inc. Page 1
Executive Summary
The following is a summary of the recommended terms for the issuance of $2,020,000 General
Obligation Bonds, Series 2023A (the “Bonds”). Additional information on the proposed finance
plan and issuing process can be found after the Executive Summary, in the Issue Overview and
Attachment 3 – Related Considerations.
Purpose Proceeds from the Bonds will be used to finance the City’s 2023
street improvements, the purchase of equipment and to pay
costs associated with the issuance of the Bonds.
Security The Bonds will be a general obligation of the City. The City will
pledge special assessments collected from benefitted properties
and property tax levies for payment of the Bonds.
Repayment Term The Bonds will mature annually each December 15 in the years
2024 through 2033. Interest on the Bonds will be payable on
June 15, 2024 and semiannually thereafter on each June 15 and
December 15.
Estimated Interest Rate True interest cost (TIC): 3.74%
Prepayment Option Bonds maturing on and after December 15, 2032 will be subject
to redemption on December 15, 2031 and any day thereafter at
a price of par plus accrued interest.
Rating A rating will be requested from Standard and Poor’s (S&P). The
City’s general obligation debt is currently rated "AA-" by S&P.
Tax Status The Bonds will be tax-exempt, bank qualified obligations.
Risk Factors There are certain risks associated with all debt. Risk factors
related to the Bonds are discussed in Attachment 5.
Type of Bond Sale Negotiated Sale with Northland Securities, Inc.
Estimated Pricing Day Monday, September 18, 2023
Council Consideration Monday, September 18, 2023, at 7:00 p.m.
Northland Securities, Inc. Page 2
Issue Overview
Purpose
Proceeds from the Bonds will be used to finance the City’s 2023 street improvements (the
“Improvement Portion”), the purchase of equipment (the “Equipment Portion”), and to pay costs
associated with the issuance of the Bonds. The Bonds have been sized based on estimates
provided by City staff. The table below contains the sources and uses of funds for the bond issue.
Authority
The Bonds will be issued pursuant to the authority of Minnesota Statutes, Section 412.301 and
Chapters 429 and 475.
Under Section 412.301, Capital Equipment includes, but is not limited to, road construction and
maintenance equipment, public safety equipment and computer hardware and software, which
must have a useful life at least as long as the term of the debt issued to finance the equipment .
Effective July 1, 2023, the term of the Bonds cannot exceed 20 years from the date of issuance.
If the amount of the Equipment Portion of the Bonds exceeds 0.25% of the estimated market value
of the taxable property in the City, a reverse referendum provision applies. The City’s estimated
market value for taxes payable in 2023 is $613,717,300 ($613,717,300 x 0.0025 = $1,534,293). Since
the Equipment Portion of the Bonds does not exceed $1,534,293 the reverse referendum provision
does not apply.
Under Chapter 429, an Improvement means any type of improvement made under authority
granted by section 429.021, which includes, but is not limited to, improvements to streets and
sidewalks, storm and sanitary sewer systems, and street lighting systems.
Before issuing bonds under Chapter 429, the City must hold a public hearing on the
improvements and the proposed bonds and must then pass a resolution ordering the
improvements by at least a 4/5 majority. A public hearing was held on April 17, 2023 and the
resolution ordering the improvements was adopted with at least a 4/5 majority at the meeting.
Structure
The Improvement Portion of the Bonds has been structured to result in relatively level annual
principal payments over 10 years. The special assessments have been structured to result in equal
annual principal payments, resulting in a decreasing levy. The Equipment Portion has been
structured to result in relatively level annual debt service payments over 5 years.
The proposed structure for the bond issue and preliminary debt service projections are illustrated
in Attachment 1 and the estimated levies are illustrated in Attachment 2.
Equipment Improvement
Issue
Summary
Sources Of Funds
Par Amount of Bonds $460,000.00 $1,560,000.00 $2,020,000.00
Total Sources $460,000.00 $1,560,000.00 $2,020,000.00
Uses Of Funds
Deposit to Project Construction Fund 443,695.00 1,513,900.00 1,957,595.00
Costs of Issuance 7,184.66 24,365.34 31,550.00
Total Underwriter's Discount (1.500%)6,900.00 23,400.00 30,300.00
Rounding Amount 2,220.34 (1,665.34)555.00
Total Uses $460,000.00 $1,560,000.00 $2,020,000.00
Northland Securities, Inc. Page 3
Security and Source of Repayment
The Bonds will be a general obligation of the City. The finance plan relies on the following
assumptions for the revenues used to pay debt service, as provided by City staff:
• Special Assessments. The City is expected to levy special assessments against benefited
properties in the amount of $574,600. The assessments will be payable over 10 years, with
an interest rate of 2% over the average coupon on the Bonds (currently estimated to be
5.45%) and structured for level annual principal payments. The Plan assumes that the
assessments will be levied in 2023 for initial payment in 2024.
• Property Taxes. The remaining revenues needed to pay debt service on the Bonds are
expected to come from property tax levies. The initial projections show an annual tax levy
ranging from approximately $142,659 initially, down to $108,017 in the final year is needed
to produce the statutory requirement of 105% of debt service, after accounting for
assessments for the Improvement Portion of the Bonds. The initial projections show an
annual levy averaging approximately $106,971 is needed to produce the statutory
requirement of 105% of debt service for the Equipment Portion of the Bonds. The levies
may be adjusted annually based on actual special assessment collections and additional
monies in the debt service funds. The initial tax levies will be made in 2023 for taxes
payable in 2024.
Plan Rationale
The Finance Plan recommended in this report is based on a variety of factors and information
provided by the City related to the financed project and City objectives, Northland’s knowledge
of the City and our experience in working with similar cities and projects. The issuance of General
Obligation Bonds provides the best means of achieving the City’s objectives and cost-effective
financing. The City has successfully issued and managed this type of debt for previous projects.
Issuing Process
The City has engaged Northland to act as underwriter for the Bonds pursuant to federal securities
regulations. Northland will purchase the Bonds in an “arm’s length” negotiated sale. The
calendar of events for the issuing process can be found in Attachment 4.
Underwriter: Northland Securities, Inc., Minneapolis, Minnesota
Bond Counsel: Taft Stettinius & Hollister, LLP, Minneapolis, Minnesota
Paying Agent: Northland Trust Services, Inc. Minneapolis, Minnesota
Northland Securities, Inc. Page 4
Attachment 1 – Preliminary Debt Service Schedules
Combined
*Based on estimated “AA” bank qualified rates as June 16, 2023, plus 0.25%.
Date Principal Coupon Interest Total P+I Fiscal Total
10/17/2023 -----
06/15/2024 --45,377.01 45,377.01 -
12/15/2024 245,000.00 3.550%34,318.75 279,318.75 324,695.76
06/15/2025 --29,970.00 29,970.00 -
12/15/2025 250,000.00 3.400%29,970.00 279,970.00 309,940.00
06/15/2026 --25,720.00 25,720.00 -
12/15/2026 245,000.00 3.300%25,720.00 270,720.00 296,440.00
06/15/2027 --21,677.50 21,677.50 -
12/15/2027 250,000.00 3.250%21,677.50 271,677.50 293,355.00
06/15/2028 --17,615.00 17,615.00 -
12/15/2028 255,000.00 3.300%17,615.00 272,615.00 290,230.00
06/15/2029 --13,407.50 13,407.50 -
12/15/2029 155,000.00 3.350%13,407.50 168,407.50 181,815.00
06/15/2030 --10,811.25 10,811.25 -
12/15/2030 155,000.00 3.400%10,811.25 165,811.25 176,622.50
06/15/2031 --8,176.25 8,176.25 -
12/15/2031 155,000.00 3.450%8,176.25 163,176.25 171,352.50
06/15/2032 --5,502.50 5,502.50 -
12/15/2032 155,000.00 3.500%5,502.50 160,502.50 166,005.00
06/15/2033 --2,790.00 2,790.00 -
12/15/2033 155,000.00 3.600%2,790.00 157,790.00 160,580.00
Total $2,020,000.00 -$351,035.76 $2,371,035.76 -
Yield Statistics
Bond Year Dollars $10,280.44
Average Life 5.089 Years
Average Coupon 3.4145971%
Net Interest Cost (NIC)3.7093315%
True Interest Cost (TIC)3.7444962%
Bond Yield for Arbitrage Purposes 3.4098356%
All Inclusive Cost (AIC)4.1010049%
IRS Form 8038
Net Interest Cost 3.4145971%
Weighted Average Maturity 5.089 Years
Optional Redemption
12/15/2031 @100.000%
Northland Securities, Inc. Page 5
Equipment
Improvement
Date Principal Coupon Interest Total P+I Fiscal Total
10/17/2023 -----
06/15/2024 --10,204.25 10,204.25 -
12/15/2024 85,000.00 3.550%7,717.50 92,717.50 102,921.75
06/15/2025 --6,208.75 6,208.75 -
12/15/2025 90,000.00 3.400%6,208.75 96,208.75 102,417.50
06/15/2026 --4,678.75 4,678.75 -
12/15/2026 90,000.00 3.300%4,678.75 94,678.75 99,357.50
06/15/2027 --3,193.75 3,193.75 -
12/15/2027 95,000.00 3.250%3,193.75 98,193.75 101,387.50
06/15/2028 --1,650.00 1,650.00 -
12/15/2028 100,000.00 3.300%1,650.00 101,650.00 103,300.00
Total $460,000.00 -$49,384.25 $509,384.25 -
Date Principal Coupon Interest Total P+I Fiscal Total
10/17/2023 -----
06/15/2024 --35,172.76 35,172.76 -
12/15/2024 160,000.00 3.550%26,601.25 186,601.25 221,774.01
06/15/2025 --23,761.25 23,761.25 -
12/15/2025 160,000.00 3.400%23,761.25 183,761.25 207,522.50
06/15/2026 --21,041.25 21,041.25 -
12/15/2026 155,000.00 3.300%21,041.25 176,041.25 197,082.50
06/15/2027 --18,483.75 18,483.75 -
12/15/2027 155,000.00 3.250%18,483.75 173,483.75 191,967.50
06/15/2028 --15,965.00 15,965.00 -
12/15/2028 155,000.00 3.300%15,965.00 170,965.00 186,930.00
06/15/2029 --13,407.50 13,407.50 -
12/15/2029 155,000.00 3.350%13,407.50 168,407.50 181,815.00
06/15/2030 --10,811.25 10,811.25 -
12/15/2030 155,000.00 3.400%10,811.25 165,811.25 176,622.50
06/15/2031 --8,176.25 8,176.25 -
12/15/2031 155,000.00 3.450%8,176.25 163,176.25 171,352.50
06/15/2032 --5,502.50 5,502.50 -
12/15/2032 155,000.00 3.500%5,502.50 160,502.50 166,005.00
06/15/2033 --2,790.00 2,790.00 -
12/15/2033 155,000.00 3.600%2,790.00 157,790.00 160,580.00
Total $1,560,000.00 -$301,651.51 $1,861,651.51 -
Northland Securities, Inc. Page 6
Attachment 2 – Estimated Levy Schedules
Equipment
Improvement
Date Total P+I 105% Levy
Levy
Year
Collection
Year
12/15/2023 --
12/15/2024 102,921.75 108,067.84 2023 2024
12/15/2025 102,417.50 107,538.38 2024 2025
12/15/2026 99,357.50 104,325.38 2025 2026
12/15/2027 101,387.50 106,456.88 2026 2027
12/15/2028 103,300.00 108,465.00 2027 2028
Total $509,384.25 $534,853.46
Date Total P+I 105% Levy
Less:
Special
Assessment
Revenue*Net Levy
Levy
Year
Collection
Year
12/15/2023 ----
12/15/2024 221,774.01 232,862.71 90,167.51 142,695.20 2023 2024
12/15/2025 207,522.50 217,898.63 85,644.14 132,254.49 2024 2025
12/15/2026 197,082.50 206,936.63 82,512.56 124,424.07 2025 2026
12/15/2027 191,967.50 201,565.88 79,381.00 122,184.88 2026 2027
12/15/2028 186,930.00 196,276.50 76,249.42 120,027.08 2027 2028
12/15/2029 181,815.00 190,905.75 73,117.86 117,787.89 2028 2029
12/15/2030 176,622.50 185,453.63 69,986.28 115,467.35 2029 2030
12/15/2031 171,352.50 179,920.13 66,854.72 113,065.41 2030 2031
12/15/2032 166,005.00 174,305.25 63,723.14 110,582.11 2031 2032
12/15/2033 160,580.00 168,609.00 60,591.58 108,017.42 2032 2033
Total $1,861,651.51 $1,954,734.09 $748,228.21 $1,206,505.88
*Special assessment revenue is based on assessments totaling $574,600 assessed at a rate of 5.45% (2% over
the average coupon), with equal annual principal payments spread over 10 years.
Northland Securities, Inc. Page 7
Attachment 3 – Related Considerations
Bank Qualified
We understand the City (in combination with any subordinate taxing jurisdictions or debt issued
in the City’s name by 501(c)3 corporations) anticipates issuing $10,000,000 or less in tax-exempt
debt during this calendar year. Therefore, the Bonds will be designated as “bank qualified”
obligations pursuant to Federal Tax Law.
Arbitrage Compliance
Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements
which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the
City expects to qualify for is the “small issuer” exemption because the City expects to issue less
than $5,000,000 of tax-exempt bonds, including any 501(c)3 conduit financings, in calendar year
2023.
Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be
subject to yield restriction in the debt service fund. A bona fide debt service fund involves an
equal matching of revenues to debt service expense with a balance forward permitted equal to
the greater of the investment earnings in the fund during that year or 1/12 of the debt service of
that year.
The City should become familiar with the various Arbitrage Compliance requirements for this
bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements
in greater detail.
Continuing Disclosure
Type: Full
Dissemination Agent: Northland Securities, Inc.
The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary
requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence
needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is
obtaining commitment from the issuer to provide continuing disclosure. The document
describing the continuing disclosure commitments (the “Undertaking”) is contained in the
Official Statement that will be prepared to offer the Bonds to investors.
The City has more than $10,000,000 of outstanding debt and is required to undertake “full”
continuing disclosure. Full disclosure requires annual posting of the audit and a separate
continuing disclosure report, as well as the reporting of certain “material events.” Material events
set forth in the Rule, including, but not limited to, bond rating changes, call notices, and issuance
of “financial obligations” (such as USDA loans, Public Finance Authority loans and lease
agreements) must be reported within ten days of occurrence. The report contains annual financial
information and operating data that “mirrors” material information presented in the Official
Statement. The specific contents of the annual report will be described in the Undertaking that
appears in the appendix of the Official Statement. Northland currently serves as dissemination
agent for the City, assisting with the annual reporting. The information for the Bonds will be
incorporated into the reporting.
Premiums
In the current market environment, it is likely that the proposed pricing will include premiums.
A premium price occurs when the underwriter pays the City an amount in excess of the par
Northland Securities, Inc. Page 8
amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums reflects
the underwriter’s view on future market conditions, tax considerations for investors and other
factors. Ultimately, the true interest cost calculation (“TIC”) will indicate the overall cost to the
City, regardless of premium.
A premium price produces additional funds that can be used in several ways:
• The premium means that the City needs less bond proceeds and can reduce the size of the
issue by the amount of the premium.
• The premium can be deposited in the Construction Fund and used to pay addit ional
project costs, rather than used to reduce the size of the issue.
• The premium can be deposited in the Debt Service Fund and used to pay principal and
interest.
Northland will work with City staff prior to the day of pricing to determine use of premium (if
any).
Rating
A rating will be requested from Standard and Poor’s (S&P). The City’s general obligation debt is
currently rated "AA-" by S&P. The rating process will include a conference call with the rating
analyst. Northland will assist City staff in preparing for and conducting the rating call.
Northland Securities, Inc. Page 9
Attachment 4 – Calendar of Events
The following checklist of items denotes each milestone activity as well as the members of the
finance team who will have the responsibility to complete it. Please note this proposed timetable
assumes regularly scheduled City Council meetings.
Date Action Responsible Party
April 17 Feasibility Report reviewed
Improvement Hearing Held, Resolution Ordering the
Improvements adopted
City Council Action
June 20 Trigger Resolution and Finance Plan sent to City Northland
June 27 Assessment Hearing
Adopt Trigger Resolution and Review Finance Plan –
6:00 p.m. Special Meeting
City Council Action
July 6 General Information Certificate Sent to City Northland
July 20 General Information Completed and Returned to
Northland
City Staff
June 2023 July 2023
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 3 1
4 5 6 7 8 9 10 2 3 4 5 6 7 8
11 12 13 14 15 16 17 9 10 11 12 13 14 15
18 19 20 21 22 23 24 16 17 18 19 20 21 22
25 26 27 28 29 30 23 24 25 26 27 28 29
30 31
August 2023 September 2023
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 1 2
6 7 8 9 10 11 12 3 4 5 6 7 8 9
13 14 15 16 17 18 19 10 11 12 13 14 15 16
20 21 22 23 24 25 26 17 18 19 20 21 22 23
27 28 29 30 31 24 25 26 27 28 29 30
October 2023 November 2023
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7 1 2 3 4
8 9 10 11 12 13 14 5 6 7 8 9 10 11
15 16 17 18 19 20 21 12 13 14 15 16 17 18
22 23 24 25 26 27 28 19 20 21 22 23 24 25
29 30 31 26 27 28 29 30
Holiday
Northland Securities, Inc. Page 10
Date Action Responsible Party
August 3 Preliminary Official Statement Sent Rating Agency and
to City for Sign Off
Northland
Week of August 14
or August 21
Rating Call Northland, City,
Rating Agency
August 21 RFP for Pricing Opinion Sent to Potential Municipal
Advisors
City Staff
August 30 RFP for Pricing Opinions Due, Municipal Advisor
Selected
City to confirm project costs to be financed and
provides pre-paid assessment amount, if applicable, to
Northland
City Staff
September 8 Rating Received
Debt Study sent to City
City Staff, Rating
Agency, Northland
September 11 Awarding Resolution sent to City Northland, Bond
Counsel
Sept 18 Pricing Date
Presentation of Debt Study
Bond Purchase Contract Signed and Awarding
Resolution adopted – 6:00 p.m.
City Council Action
October 17 Closing on the Bonds (Proceeds Available) Northland, City Staff,
Bond Counsel
Northland Securities, Inc. Page 11
Attachment 5 - Risk Factors
Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt service
and other revenues. Final levies will be set based on the results of sale. Levies should be reviewed
annually and adjusted as needed. The debt service levy must be included in the preliminary levy
for annual Truth in Taxation hearings. Future Legislative changes in the property tax system,
including the imposition of levy limits and changes in calculation of property values, would affect
plans for payment of debt service. Delinquent payment of property taxes would reduce revenues
available to pay debt service.
Special Assessments: Special assessments for the financed projects have not been levied at this
time. This Finance Plan is based on the assumptions listed earlier in this report. Changes in the
terms and timing for the actual assessments will alter the projected flow of funds for payment of
debt service on the Bonds. Also, special assessments may be prepaid. It is likely that the income
earned on the investment of prepaid assessments will be less than the interest paid if the
assessments remained outstanding. Delinquencies in assessment collections would reduce
revenues needed to pay debt service. The collection of deferred assessments, if any, have not been
included in the revenue projections. Projected assessment income should be reviewed annually
and adjusted as needed.
General: In addition to the risks described above, there are certain general risks associated with
the issuance of bonds. These risks include, but are not limited to:
• Failure to comply with covenants in bond resolution.
• Failure to comply with Undertaking for continuing disclosure.
• Failure to comply with IRS regulations, including regulations related to use of the proceeds
and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as
tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax-
exemption.
CERTIFICATION OF MINUTES
RELATING TO GENERAL OBLIGATION BONDS, SERIES 2023A
ISSUER: City of St. Joseph, Minnesota
BODY: City Council
KIND, DATE, TIME AND PLACE OF MEETING:
A regular meeting held on Tuesday, June 27, 2023, at 6:00 p.m., in the City Offices
MEMBERS PRESENT:
MEMBERS ABSENT:
Documents Attached: Extract of Minutes of said meeting.
RESOLUTION 2023-033
APPROVING THE ISSUANCE OF
GENERAL OBLIGATION BONDS, SERIES 2023A
I, the undersigned, being the duly qualified and acting recording officer of the public corporation
issuing the obligations referred to in the title of this certificate, certify that the documents attached
hereto, as described above, have been carefully compared with the original records of said
corporation in my legal custody, from which they have been transcribed; that said documents are
a correct and complete transcript of the minutes of a meeting of the governing body of said
corporation, and correct and complete copies of all resolutions and other actions taken and of all
documents approved by the governing body at said meeting, so far as they relate to said
obligations; and that said meeting was duly held by the governing body at the time and place and
was attended throughout by the members indicated above, pursuant to call and notice of such
meeting given as required by law.
WITNESS MY HAND officially as such recording officer on June 27, 2023.
City Clerk
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE CITY OF ST. JOSEPH, STATE OF MINNESOTA
HELD: Tuesday, June 27, 2023
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of St. Joseph, State of Minnesota, was duly held on Tuesday, June 27, 2023 at 6:00 p.m.
Member ___________________ introduced the following resolution and moved its
adoption:
RESOLUTION 2023-033
APPROVING THE ISSUANCE OF
GENERAL OBLIGATION BONDS, SERIES 2023A
BE IT RESOLVED by the City Council of the City of St. Joseph, Minnesota (herein, the
“City”), as follows:
1. The City Council hereby finds and declares that it is necessary and expedient for the City
to sell and issue its fully registered general obligation bonds in the total aggregate principal
amount not to exceed $2,040,000 (herein, the “Bonds”). The proceeds of the Bonds will
be used to finance the City’s 2023 street improvement projects, the purchase of equipment
and the costs of issuing the Bonds.
2. The City Council desires to proceed with the sale of the Bonds by direct negotiation with
Northland Securities, Inc. (herein, “NSI”). NSI will purchase the Bonds in an arm’s-length
commercial transaction with the City.
3. The Mayor and City Administrator are hereby authorized to approve the sale of the Bonds
in an aggregate principal amount not to exceed $2,040,000 and to execute a bond purchase
agreement for the purchase of the Bonds with NSI, provided the true interest cost is less
than 4.75%.
4. Upon approval of the sale of the Bonds by the Mayor and the City Administrator the City
Council will act at its next regularly scheduled or special meeting thereafter to adopt the
necessary approving resolutions as prepared by the City's bond counsel.
5. NSI is authorized to prepare an Official Statement related to the sale of the Bonds.
6. If the Mayor and the City Administrator have not approved the sale of the bonds to NSI
and executed the related bond purchase agreement by December 31, 2023, this resolution
shall expire.
The motion for the adoption of the foregoing resolution was duly seconded by Member
__________________, and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
Adopted by the City Council of the City of St. Joseph this 27th day of June, 2023.
CITY OF ST. JOSEPH
_________________________________
By: Rick Schultz, Mayor
ATTEST:
____________________________________
By: David Murphy, City Administrator
STAFF MEMO
Prepared by:
City Clerk
Meeting Date:
6/27/2023
☐Consent Agenda Item
☒Regular Agenda Item
Agenda Item #
8
Reviewed by: Item:
Street Closure Request – Millstream Arts Festival
ACTION REQUESTED
Approve the special event application for the Millstream Arts Festival on August 27, 2023.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A
PREVIOUS COUNCIL ACTION N/A
REFERENCE AND BACKGROUND Staff received a special event permit for the Millstream Arts
Festival. The Festival will be from 11-5. The street closure will consist of 1 block of College Avenue
from MN Street to Ash Street. The applicant is requesting the closure from 6AM-7PM to allow for
setup and cleanup at the end of the event. Staff has reviewed the request and there are no issues
or concerns.
BUDGET IMPACT
STAFF RECOMMENDED ACTION Approve the special event permit for Millstream Arts Festival
on Sunday, August 27, 2023.
SUPPORTING DATA/ATTACHMENTS
•Application, Narrative, Map
STAFF MEMO
Prepared by:
City Clerk
Meeting Date:
6/27/23
☐Consent Agenda Item
☒Regular Agenda Item
Agenda Item #
9
Reviewed by: Item:
Special Event Permit – Rock 4 Alzheimers
ACTION REQUESTED
Motion to approve the special event permit submitted by Bad Habit Brewing Company for Rock
4 Alzheimer’s on September 10, 2023; requiring 1 off-duty officer be present.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION N/A
PREVIOUS COUNCIL ACTION N/A
REFERENCE AND BACKGROUND Bad Habit Brewing Company submitted their special event
permit request for Rock 4 Alzheimer’s. The event will be held on September 10, 2023. The event
will be held from 12PM – 9PM. Staff reviewed the request and Chief Pfannenstein is requiring 1
off-duty officer to be at the event. A map of the event is included in the packet.
BUDGET IMPACT
STAFF RECOMMENDED ACTION
Motion to approve the special event permit submitted by Bad Habit Brewing Company for Rock
4 Alzheimer’s on September 10, 2023; requiring 1 off-duty officer be present.
SUPPORTING DATA/ATTACHMENTS
•Application, Map of Event
STAFF MEMO
Prepared by:
David Murphy
Meeting Date:
6/27/2023
☐Consent Agenda Item
☒Regular Agenda Item
Agenda Item #
10
Reviewed by: Item:
Temporary Work Space Permit – Northern Natural Gas
ACTION REQUESTED
Approval of Temporary Work Space Permit.
REFERENCE AND BACKGROUND
The City Council Approved two agreements at the June 5th City Council Meeting allowing for
access to the road and an additional easement for the pipeline.
Northern Natural Gas has reviewed the project with the contractor and has determined there is
a need for a temporary work space outside of the permanent easement to property perform the
construction work.
The proposed permit allows Northern Natural Gas to operate in the shaded area on the attached
map. The permit is for 24 months and the City will be compensated $1,000 by Northern Natural
Gas for the usage of the property. The agreement also requires Northern Natural gas to repair
any damages that may occur to the property from their usage.
BUDGET IMPACT
Negligible, the Facility Easement requires a $1,000 payment from NNG to the City for the
Easement.
STAFF RECOMMENDED ACTION
Approval of the permit.
SUPPORTING DATA/ATTACHMENTS
Temporary Work Space Permit Agreement.
Map of proposed permit area.