2020 Comprehensive Annual Financial Report For the Year Ended December 31, 2020

ST. CLOUD SKATE BOARD PARK

The St. Cloud Skate Plaza - Heritage Regional Park

The St. Cloud Skate Plaza has played a major role in shaping the history of St. Cloud, Minnesota. Since the mid‐1800’s the city has evolved and embraced its parks and open spaces focusing on both active and passive community activities. Action sports such as a skateboarding started to take hold across the world in the 1980’s-1990’s. These were the days of skating in pools and building wooden “vert” ramps within parks and calling them “Skate Parks.”

A lot has evolved in the world of action sports, particularly skateboarding, and much like the world today the City of St. Cloud has learned to evolve also! The skaters of the past have now become professionals in our workforce; they have become designers, engineers and architects. These professionals, along with the St. Cloud skating community, were called into action to help to listen, learn, design and create the 22,200 square foot, St. Cloud Skate Plaza!

The St. Cloud Skate Plaza is now a point of community pride! The plaza has an open layout with defined pedestrian and spectator spaces. Amenities in these spaces include a covered shade structure with picnic tables, vehicle parking, ADA accessibility, a public restroom, sidewalks, LED plaza lighting, integrated landscaping elements and stormwater drainage features.

Iconic skate plaza features have been constructed to allow for the beginner, intermediate and advanced skater to show off their skills. Skate features installed in the plaza include one of the largest flow bowls in the State of Minnesota. Additionally, the plaza contains many ramps, stairs, ledges, rails and “grinding” surfaces.

One must also pay homage to the history of St. Cloud. So, we did exactly that by implementing St. Cloud Granite into features including pool coping into the bowl, a quarter pipe with hip, top deck, frame bank, pyramid, manual pad, banked hip, pier 7 ledge, bank hubba combo and many more!

Photos taken by: City of St. Cloud Media Department

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020

DEPARTMENT OF FINANCE

RUTH WIPPER, DIRECTOR OF FINANCE

Member of Government Finance Officers Association of the United States and Canada ST. CLOUD, MINNESOTA IN RELATION TO OTHER MINNESOTA CITIES

Duluth •

St. Cloud •

Minneapolis • St. Paul •

Rochester •

St. Cloud, Minnesota is located on the banks of the beautiful Mississippi River just over 60 miles northwest of the Twin Cities of Minneapolis and St. Paul. As the center of Minnesota’s fastest growing metropolitan area, St. Cloud serves as a commercial hub for over 250,000 people. In addition to our strong economic environment, St. Cloud offers very ample and diverse opportunities in education, recreation and the arts. Outside of the Twin Cities metropolitan area, St. Cloud is the third largest metropolitan city in the State of Minnesota.

CITY OF ST. CLOUD, MINNESOTA

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020

TABLE OF CONTENTS

Reference Page INTRODUCTORY SECTION Table of Contents i-iii Letter of Transmittal 1-7 GFOA Certificate of Achievement 8 Organizational Chart 9 List of Elected and Appointed Officials 10

FINANCIAL SECTION Independent Auditors’ Report 11-13 Management’s Discussion and Analysis 14-27 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement A-1 28-29 Statement of Activities Statement A-2 30-31 Fund Financial Statements: Balance Sheet – Governmental Funds Statement B-1 32-33 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position Statement B-2 34 Statement of Revenues, Expenditures and Changes in Fund Balance – Governmental Funds Statement B-3 35-36 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement B-4 37 General Fund Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Statement B-5 38 Proprietary Funds – Statement of Fund Net Position Statement C-1 39-42 Proprietary Funds – Statement of Revenues, Expenses and Changes in Fund Net Position Statement C-2 43-44 Proprietary Funds – Statement of Cash Flows Statement C-3 45-48 Custodial Funds – Statement of Fiduciary Net Position Statement D-1 49 Custodial Funds – Statement of Changes in Fiduciary Net Position Statement D-1 49 Notes to Financial Statements 50-100 Required Supplementary Information: Schedule of Changes in Total OPEB Liability and Related Ratios 101 Schedule of the Proportionate Share of the Net Pension Liability – GERF Retirement Funds 102 Schedule of City’s Contributions – GERF Retirement Funds 103 Schedule of the Proportionate Share of the Net Pension Liability – PEPFF Retirement Funds 104 Schedule of City’s Contributions – PEPFF Retirement Funds 105 Notes to Required Supplementary Information 106-110

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COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020

TABLE OF CONTENTS (CONTINUED)

Reference Page FINANCIAL SECTION (CONTINUED) Description of Non-Major Governmental Funds 111-116 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet – Non-major Governmental Funds Statement E-1 117-126 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-major Governmental Funds Statement E-2 127-137 General Fund Schedule of Revenues, Compared to Budget Statement E-3 138 General Fund Schedule of Expenditures, Compared to Budget Statement E-4 139-142 Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: Revolving Loans Special Revenue Fund Statement E-5 143 Community Development Block Grant Special Revenue Fund Statement E-6 144 Library Special Revenue Fund Statement E-7 145 Franchise Fee Development Special Revenue Fund Statement E-8 146 Brownsfield EPA Special Revenue Fund Statement E-9 147 Economic Development Special Revenue Fund Statement E-10 148 Development Special Revenue Fund Statement E-11 149 Park Reserve Special Revenue Fund Statement E-12 150 Gardens Special Revenue Fund Statement E-13 151 Retired and Senior Volunteer Program Special Revenue Fund Statement E-14 152 Airport Operating Special Revenue Fund Statement E-15 153 TIF – Centre Square I and II Special Revenue Fund Statement E-16 154 TIF – Paramount Ramp Special Revenue Fund Statement E-17 155 TIF – Lincoln Target Special Revenue Fund Statement E-18 156 TIF – Fingerhut II Special Revenue Fund Statement E-19 157 TIF – Webway II Special Revenue Fund Statement E-20 158 TIF – ETC Enterprises Special Revenue Fund Statement E-21 159 TIF – Eastgate Special Revenue Fund Statement E-22 160 TIF – Goettens Rental Housing Special Revenue Fund Statement E-23 161 TIF – Goettens Single Family Housing Special Revenue Fund Statement E-24 162 TIF – Westwood Village Special Revenue Fund Statement E-25 163 TIF – Eich Holdings LLC Project Special Revenue Fund Statement E-26 164 TIF – Westwood Phase II Special Revenue Fund Statement E-27 165 TIF – Westwind Apartments Special Revenue Fund Statement E-28 166 TIF – Mahowald Special Revenue Fund Statement E-29 167 TIF – NABC Holdings/Tri County Abstract Special Revenue Fund Statement E-30 168 TIF – Model College Special Revenue Fund Statement E-31 169 TIF – Microbiologics Special Revenue Fund Statement E-32 170 TIF – Granite Bowl Special Revenue Fund Statement E-33 171 TIF – Park Industries II Special Revenue Fund Statement E-34 172 Marco Tax Abatement Special Revenue Fund Statement E-35 173 Hotel – Motel Tax Special Revenue Fund Statement E-36 174

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COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020

TABLE OF CONTENTS (CONTINUED)

Reference Page FINANCIAL SECTION (CONTINUED) Schedules of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: (Continued) Fire Hazardous Material Special Revenue Fund Statement E-37 175 Metropolitan Area Network Consortium Special Revenue Fund Statement E-38 176 Cable TV Access Operating Special Revenue Fund Statement E-39 177 Description of Internal Services Funds 178 Combining and Individual Fund Statements and Schedules: Internal Service Funds – Combining Statement of Net Position Statement F-1 179 Internal Service Funds – Combining Statement of Revenues, Expenses and Changes in Fund Net Position Statement F-2 180 Internal Service Funds – Combining Statement of Cash Flows Statement F-3 181 Description of Fiduciary Funds 182 Custodial Funds – Combining Statement of Fiduciary Net Position Statement G-1 183 Custodial Funds – Combining Statement of Changes in Fiduciary Net Position Statement G-1 183

STATISTICAL SECTION Summary 184-185 Net Position by Component Table 1 186-187 Changes in Net Position Table 2 188-195 Governmental Activities Tax Revenues by Source Table 3 196 Fund Balances of Governmental Funds Table 4 197-198 Changes in Fund Balances of Governmental Funds Table 5 199-202 General Governmental Activities Tax Revenue by Source Table 6 203 Assessed Value and Estimated Actual Value of Taxable Property Table 7 204-205 Property Tax Rates per $1,000 of Tax Capacity Value – All Direct and Overlapping Governments Table 8 206 Principal Property Taxpayers Table 9 207 Property Tax Levies and Collections Table 10 208 Ratios of Outstanding Debt by Type Table 11 209-210 Ratios of General Bonded Debt Outstanding Table 12 211-212 Computation of Direct and Overlapping Bonded Debt Table 13 213 Legal Debt Margin Information Table 14 214-215 Pledged-Revenue Coverage Table 15 216-217 Demographic and Economic Statistics Table 16 218 Principal Employers Table 17 219 Full-Time Equivalent City Government Employees by Function Table 18 220-221 Operating Indicators by Function Table 19 222-225 Capital Asset Statistics by Function Table 20 226-227

- iii - CITY OF ST. CLOUD, MINNESOTAFINANCE DEPARTMENT Finance Director 320-255-2708 Utility Billing 320-255-7211 Fax 320-255-7297

June 2, 2021

To the Honorable Mayor, Members of the Governing Council, and Citizens of the City of St. Cloud:

Minnesota Statutes and Section 8.51 of the City’s Home Rule Charter requires that every general- purpose local government publish, within six months of the close of each fiscal year, a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended December 31, 2020.

Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

BerganKDV, Ltd., Certified Public Accountants, have issued an unmodified (“clean”) opinion on the City of St. Cloud’s financial statements for the year ended December 31, 2020. The independent auditors’ report is located at the front of the financial section of this report.

Management’s discussion and analysis (MD&A) immediately follows the independent auditors’ report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A compliments this letter of transmittal and should be read in conjunction with it.

PROFILE OF THE GOVERNMENT The City of St. Cloud, incorporated in 1856, is located on the banks of the Mississippi River just 70 miles northwest of the Twin Cities of Minneapolis and St. Paul. The City of St. Cloud currently occupies a land area of 41.04 square miles and serves a population of 68,524. The City of St. Cloud is empowered to levy a property tax on both real and personal properties located within its boundaries. It also is empowered by state statute to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing council.

The City of St. Cloud has operated under a strong mayor-council-city administrator form of government since 1952. Policy-making and legislative authority are vested in a governing council consisting of the mayor and seven other members. The governing council is responsible, among other things, for passing ordinances, adopting the budget, and appointing committees. The Mayor is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. The Council is elected on a non- partisan basis. Council members and the Mayor serve four-year staggered terms, with four ward Council members and the three at-large Council members and the Mayor elected every four years. The Mayor and the at-large Council members are elected by the entire City. The ward Council members are elected by the voters in their perspective ward boundaries.

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PROFILE OF THE GOVERNMENT (CONTINUED) The City of St. Cloud provides a full-range of services, including police and fire protection; the construction and maintenance of highways, streets, and other infrastructure; water, sewer, hydroelectric, stormwater, street light, parking, refuse, municipal athletic complex, convention center; parks and recreational activities, planning, health and inspections, airport, and general administrative services.

The annual budget serves as the foundation of the City of St. Cloud’s financial planning and control. All departments of the City of St. Cloud are required to submit requests for appropriation to the government’s City Administrator and Finance Director by approximately June of each year. The government’s Finance Department uses these requests as the starting point for developing a proposed budget. The Mayor presents the proposed budget to the Council for review prior to September 30. The Council is required to hold public hearings on the proposed budget and to adopt a final budget no later than December 31. The appropriated budget is prepared by fund, department and program. The City Administrator and Finance Director are authorized to approve transfers of appropriations between individual expenditure accounts within a department’s or fund’s budget. The City Council must approve any transfers between funds.

Local Economy Born on the Mississippi River, St. Cloud is located between the Twin Cities Metro area and the State’s world-famous lake region. The City of St. Cloud is a center of growth located within three counties: Benton, Sherburne and Stearns. The City of St. Cloud serves as the Stearns County seat.

The community’s central location in the State has fostered a diverse vibrant economy based on manufacturing, agriculture, national and international industry, and a vibrant urban center with a strong mix of retail sales, restaurants, and services. The City of 68,524 serves as a commercial hub that expands to over 250,000 people on a daily basis. The City is increasingly becoming a health care nexus with hundreds of medical specialists and expanding clinics. In addition to a strong economic environment, St. Cloud offers ample and diverse opportunities in education, recreation, and the arts. Supported by a strong business and industrial community, the city is also home to St. Cloud State University (second largest university in Minnesota with more than 14,000 full-time equivalent students), St. Cloud Technical and Community College, St. Cloud Hospital (a regional medical center), Veterans Administration Center, the Minnesota Correctional Facility, two public and two private high schools.

Through the adoption of the Comprehensive Plan, the City of St. Cloud has adopted planning policies to continue to provide for growth and expansion in the City. Economic development plans call for maintenance and continuation of a strong, diverse, and balanced economic base. Because of St. Cloud’s role as a regional economic center, the City will encourage development that brings jobs and industry to the area and plans to create and sustain a favorable economic development climate.

St. Cloud, over the past twenty years, has been one of the fastest growing metropolitan areas in Minnesota, yet cost of living is lower than in many other urban areas. The City is a cultural, entrepreneurial, and industrial center providing a hometown for people from all walks of life.

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PROFILE OF THE GOVERNMENT (CONTINUED) Local Economy (Continued) Some of the indicators of the economic vitality of the City are as follows:

2020 2019 2018 2017 Estimated Market Value for all Property $4,371,705,500 $4,196,578,500 $3,989,478,800 $3,854,486,000

Percentage Increase (Decrease) In Market Value 4.2% 5.2% 3.50% 2.82%

Number of Building Permits 1,613 1,656 1,401 1,498

Building Permit Value $131,082,361 $153,243,072 $264,069,520 $125,792,344

Population Estimate 68,524* 68,524 68,202 67,889

*Data is the most recent State demographer estimate.

Major Initiatives ♦ Private and Other Public 2020 Initiatives Holiday Inn and Suites Originally built in 1977 the hotel has undergone several expansions. The property now has 257 rooms, 43 suites, a conference center and ballroom, two basketball and volleyball courts, three pools, two hot tubs and a children’s play area. The facility is also the home to Legends Bar & Grill. The $13,339,000 renovation project includes a complete interior remodel, reroofing of existing structures and construction of a new storage building. The project began in 2020 and is expected to be completed in early 2021.

Popeyes Chicken Popeyes fast food chain is owned by Restaurant Brands International, there are 2,700 Popeyes Chicken Restaurants operating world-wide. Built at a cost of $2,100,000 the new St. Cloud location is the 16th in Minnesota and the first to be built outside of the Twin Cities metro area.

Southport Business Center Phase II of the Southport Business Center was constructed in 2020 at cost of $1,550,000. The building consists of 16,612 square feet of flex use space, it’s design and color matches the buildings from the first phase.

Central Imaging LLC The newly constructed $2,350,000 building at 3351 Roosevelt Road will be the home to Central Imaging which provides diagnostic radiology imaging services.

Tumble Fresh Laundromat Built on the site of a former Wendy’s fast-food restaurant, the $1,012,600 building features state of the art technology and provides the cleanest and safest laundromats in the marketplace. The St. Cloud location is the ninth for Tumble Fresh.

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PROFILE OF THE GOVERNMENT (CONTINUED) Major Initiatives (Continued) ♦ Private and Other Public 2020 Initiatives (Continued) Miller Marine In June of 2020 Miller Marine moved to the refinished “old Walmart building”. The new location renovated at a cost of $1,300,000 is now the largest indoor marine showroom in the mid-west. It is nearly 120,000 square feet making it a spacious, weather-free environment for year-round boat and pontoon shopping in Minnesota.

Simplicity Health Simplicity Health, an independent primary care clinic established by Dr. Julie Anderson in 2018, moved into a new location in south St. Cloud at 3290 42nd Avenue South. 360 Chiropractic, a Sartell business owned by Dr. Jon Anderson, will use part of the new build as another location in the metro area. The more than $2 million project began construction in July and most of the more than 8,000 square feet (approximately 80%) will be for Simplicity Health, which outgrew its previous location on Northway Drive.

SPIRE Credit Union A new branch of SPIRE Credit Union is coming to St. Cloud, construction on SPIRE's future facility is underway in the southeast corner of the Crossroads Center parking lot. The 5,000 square foot, $2,865,000 building is expected to be completed in the summer of 2021. SPIRE Credit Union currently operates 20 branches in Minnesota, including one in the Roosevelt Office Park in St. Cloud. The company was founded in 1933.

Foley Mansion One of the oldest most historic homes in St. Cloud is getting new life. The home known as the Foley Mansion has stood vacant since a fire gutted the inside back in the early 2000s. It was placed on the National Register of Historic Places in 1978 and is officially listed as the "Foley-Brower-Bohmer" House. The new owners plan to renovate the existing structure into a single-family home and reception hall. The second and third floors will be used as a home with the main floor and lower level used for public neighborhood gatherings. Investments will also be made to the building exterior and the grounds. Total cost of the project is expected to be $2,500,000.

The St. Cloud Minnesota Correctional Facility Opened in 1889, the site was chosen to utilize the quarrying of granite for the construction of the facility and it was largely built with inmate labor. While the facility no longer has the extensive industrial programming it once had as a Reformatory, it has the distinction of having the only Masonry and Barber Programs in the Minnesota Department of Corrections. The most unique feature of the facility is its iconic granite wall. Completed in 1922, the wall is considered the second largest continuous wall made from inmate labor, the first is the Great Wall of China. The State of MN began a major renovation of Units A, B, and C along with HVAC, fire suppression and sanitary upgrades, total project cost is expected to be $5,600,100.

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PROFILE OF THE GOVERNMENT (CONTINUED) Major Initiatives (Continued) ♦ City 2020 Initiatives Water Treatment Plant Upgrades Water Plant upgrades include a new disinfection strategy including ozone, biological filters and UV. The process and facility improvements include general plant repairs: new roofing systems, mechanical improvements to address undersized and inefficient heating, ventilation and air conditioning equipment, and required electrical, instrumentation and control upgrades. The $40,000,000 project began in late 2020 and is expected to take three years to complete.

33rd Street South from County Road 136 to 26th Avenue South This project included construction of a four-lane roadway on 33rd Street South from County Road 136 to 26th Avenue South, along with sidewalk on the south side and a multi-use bituminous trail on the north side. As part of the project, a roundabout was installed at the intersection of 33rd Street South and County Road 136. The project cost was approximately $3,977,700.

33rd Street South from CSAH 74 to County Road 136 Bituminous Trail This project included construction of a multi-use bituminous trail along the north side of 33rd Street South from CSAH 74 to County Road 136. The project cost was approximately $283,200.

25th Avenue North from 8th to 12th Street North and Upper Pan Sanitary Sewer Rerouting Improvements This project included reconstruction of the streets and utilities on 25th Avenue North from 8th to 12th Street North. The Upper Pan sanitary sewer was also rerouted with this project and lift station number 13 was eliminated. The project cost was approximately $5,019,600.

Glenn Carlson Drive Resurfacing Improvements This project included resurfacing Glenn Carlson Drive from CSAH 75 to 60th Street South. The project cost was approximately $237,700.

Lake George Regional Stormwater Improvements This project will improve water quality at Lake George. An underground concrete detention system along with filtration cartridges will be used to remove phosphorus from stormwater runoff. The system will treat about 60 acres of stormwater runoff from the Lake George area neighborhood and a section north of Division Street that previously drained directly to the lake untreated. The underground storm drain system was installed in the fall of 2020. The parking lot and sidewalks will be constructed in the spring of 2021. The project cost was approximately $683,000.

New Subdivisions Project work included the construction of street, sidewalk, water main, sanitary sewer and storm drain installation in several subdivisions throughout the City, including: • Stone Gate Center 2nd Addition – $178,000 • Stone Gate Center 3rd Addition – $251,500 • Deer Creek Crossing 12 – $557,200

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PROFILE OF THE GOVERNMENT (CONTINUED) Long Term Financial Planning Capital Improvement Plan By charter, the City of St. Cloud maintains a six-year capital improvement program which serves as a planning document to ensure that its facilities, equipment, and infrastructure are well maintained and operating in peak condition. Under the guidance of the Planning Commission, this process gives the City of St. Cloud the ability to plan for its capital needs and allocate short and long-term resources appropriately. As part of this process, the City identifies and quantifies the operational costs associated with the capital projects and budget resources accordingly.

Consolidated Plan This plan establishes the local priorities, goals, and objectives for utilization of Community Development Block Grant (CDBG) funds during the next five years. Housing and Urban Development (HUD) requires entitlement communities to update their Consolidated Plan every five years to address three national objectives: benefitting persons of low and moderate income, eliminating slum and blight, and meeting urgent needs.

Comprehensive Plan Minnesota law requires municipalities to adopt a comprehensive plan to utilize a variety of zoning, subdivision, economic development, and other policies. The comprehensive plan establishes a long- term vision for growth and redevelopment in the community. These objectives establish a policy framework by which staff, elected officials, and community stakeholders can base quasi-judicial, legislative, and independent actions. The City updated the Comprehensive Plan throughout 2015, with final Planning Commission and City Council approval in early 2016.

Property Tax Base Change The City has a financial policy that includes a target of keeping any property tax levy increase in line with the change in the City’s tax base. The following is a ten-year history of the tax base growth in the City of St. Cloud:

Tax Base Growth From Previous Year 20

15

10 2.85 2.82 3.50 5.20 4.20 5 1.93

Percent -0.20 0 -4.20 -4.16 -4.51 -5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -10

Year

6 CITY OF ST. CLOUD, MINNESOTA

PROFILE OF THE GOVERNMENT (CONTINUED) Property Tax Base Change (Continued) The last few years of the 2000’s was boom times for the area with significant growth in the City’s tax base. However, the decline in property values during the great recession resulted in a corresponding decline in the total tax base for five consecutive years. The tax base started seeing positive growth in 2015 with a 1.93% increase and another increase of 2.85% in 2016, with continued growth of 2.82% in 2017, 3.5% in 2018, 5.2% in 2019 and 4.2% in 2020. We are expecting to see continued expansion in 2021 and beyond.

AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of St. Cloud for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended December 31, 2019. This was the thirty-ninth consecutive year that the City has received this prestigious award. To be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized ACFR that report satisfied both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The City also received the GFOA’s Distinguished Budget Presentation Award for its Annual Budget document dated January 1, 2020. This was the twenty-third consecutive year the City has received this prestigious award. In order to qualify for the Distinguished Budget Presentation Award, the government’s budget document was judged to be proficient in several categories, including as a policy document, a financial plan, an operations guide, and a communications device.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. I would like to especially recognize Debbie Backes, DeAnna Fah, Lori Mensinger, Jen Piekarski, and Maggie Pierskalla for their contributions in preparing the annual report. Finally, credit also must be given to the Mayor, City Administrator, and the City Council for their unfailing support for maintaining the highest standards and professionalism in the management of the City of St. Cloud’s finances.

Sincerely,

Ruth Wipper Finance Director

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ORGANIZATIONAL CHART

Advisory Boards Advisory Boards

Airport Advisory Board Planning Commission Arts Commission Citizens Plumbing Board Board of Examiners for Mechanical Regional Human Rights Commission Installers Retired and Senior Volunteer Program Building Advisory Board Advisory Board River’s Edge Convention Center Charter Commission Mayor Civil Service Board Advisory Board Economic Development Authority Police Citizens’ Review Board Emergency Services Board St. Cloud Public Library Board Health and Housing Advisory Board Transportation Infrastructure Advisory Heritage Preservation Commission City Council Board Housing and Redevelopment Authority Whitney Senior Center Advisory Board Park and Recreation Advisory Board Zoning Board of Appeals Youth Commission

City Administrator

Legal Fire/ Community Public Law Community Finance Emergency Services and Services Enforcement Development Services Facilities

City Clerk

Accounting/ Planning River’s Edge Utilities Budgeting and Zoning Convention Center Human Resources Municipal Public Payroll/ Economic Accounts Athletic Works Development Complex Payable Information

Technology

Utility Health and Aging Airport Billing Inspections Services

Media

Building Park and Assessing Engineering Safety Recreation

Paramount

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Principal City Officials

Elected Officials

Current Term

Mayor Dave Kleis January 2017 – January 2021

Ward City Council

At Large Carol Lewis January 2017 – January 2021

At Large George Hontos January 2017 – January 2021

At Large *Jeff Goerger January 2017 – January 2021

1st Dave Masters January 2019 – January 2023

2nd **Steve Laraway January 2019 – January 2023

3rd Paul Brandmire January 2019 – January 2023

4th Mike Conway January 2019 – January 2023

*Council President **Council Vice-President

Appointed Officials

Administrator Matthew A. Staehling

Attorney Renee Courtney

Community Development Director Matt Glaesman

Community Services and Facility Director Tony Goddard

Finance Director Ruth Wipper

Fire Chief Dean Wrobbel

Information Technology Director Micah Myers

Police Chief William Blair Anderson

Public Services Director Tracy Hodel

10 Independent Auditor's Report

Honorable Mayor and Members of the City Council City of St. Cloud St. Cloud, Minnesota

Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business- type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of St. Cloud, Minnesota, as of and for the year ended December 31, 2020, and the related notes to financial statements, which collectively comprise the City's basic financial statements as listed in the Table of Contents.

Management's Responsibility for the Financial Statements The City of St. Cloud's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Housing and Redevelopment Authority which represents the assets, deferred inflows, liabilities, deferred outflows, net position, revenues and expenses of the discretely presented component unit. Those statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Housing and Redevelopment Authority, is based solely upon the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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Auditor's Responsibility (Continued) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions In our opinion, based on our audit and the report of other auditors, the financial statements referred to in the first paragraph present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of St. Cloud, Minnesota, as of December 31, 2020, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

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 and the Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board (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. 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.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Cloud's basic financial statements. The introductory section, combining and individual fund statements and schedules, supplementary financial information and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

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Other Matters (Continued)

Other Information (Continued)

The combining and individual fund statements and schedules and the supplementary financial information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules and supplementary financial information are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 2, 2021, on our consideration of the City of St. Cloud'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 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. Cloud's internal control over financial reporting and compliance.

St. Cloud, Minnesota June 2, 2021

13 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

As management of the City of St. Cloud, we offer readers of the City of St. Cloud’s financial statements this narrative overview and analysis of the financial activities of the City of St. Cloud for the fiscal year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 1-7 of this report.

Financial Highlights ♦ The assets and deferred outflows of the City of St. Cloud exceeded its liabilities and deferred inflows at the close of the most recent fiscal year by $481,369,813, as compared with $471,339,873 for the previous year. Of this amount, $55,033,643 may be used to meet government’s ongoing obligations to citizens and creditors.

♦ The government’s total net position increased by $10,029,940.

♦ As of the close of the current fiscal year, the City of St. Cloud’s governmental funds reported combined ending fund balances of $65,916,759, an increase of $6,416,586 in comparison with the prior year. Approximately 79.4% of this amount, $52,306,729 is unrestricted and available for spending at the government’s discretion.

♦ At the end of the current fiscal year, unassigned fund balance for the general fund was $23,013,927 or 48.08% percent of total general fund expenditures.

♦ The City of St. Cloud’s total debt decreased by $11,120,662 to $177,028,138, or 5.91% during the current fiscal year. The City issued $5,765,338 in revenue notes during 2020 and paid off $16,886,000 per the bond principal payment schedules.

Overview of the Financial Statements The discussion and analysis provided here are intended to serve as an introduction to the City of St. Cloud’s basic financial statements. The City of St. Cloud’s basic financial statements comprise of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementary information intended to furnish additional detail to support the basic financial statements themselves.

Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the City of St. Cloud’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the City of St. Cloud’s assets, liabilities, and deferred inflows/outflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of St. Cloud is improving or deteriorating.

14 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Overview of the Financial Statements (Continued) Government-wide financial statements (continued) The statement of activities presents information showing how the government’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 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 of the government-wide financial statements distinguish functions of the City of St. Cloud 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. Cloud include general government, public safety, public works, economic development, and culture and recreation. The business-type activities of the City of St. Cloud include the water, wastewater, hydroelectric, stormwater and street light utilities, parking system, refuse service, municipal athletic complex and convention center operations.

The government-wide financial statements include not only the City of St. Cloud itself (known as the primary government), but also a legally separate Housing and Redevelopment Authority of St. Cloud. Financial information for this component unit is reported separately from the financial information presented for the primary government itself.

The government-wide financial statements can be found on pages 28-31 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. Cloud, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City of St. Cloud can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact 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 governmental activities.

15 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Overview of the Financial Statements (Continued) Governmental funds (continued) The City of St. Cloud maintains several 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, improvement bonds, infrastructure management and improvement construction, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining and individual fund statements and schedules section of this report.

The City of St. Cloud adopts an annual appropriated budget for its general fund. Budgetary comparison statements can be found on pages 138-177 of this report for the general fund and special revenue funds to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 32-38 of this report.

Proprietary funds The City of St. Cloud maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of St. Cloud uses enterprise funds to account for its water, wastewater, hydroelectric, stormwater and street light utilities, parking system, refuse service, municipal athletic complex and convention center operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of St. Cloud’s various functions. The City of St. Cloud uses internal service funds to account for self-insurance, energy, and information technology. Because all of these services predominately benefit governmental activities rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

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, wastewater, hydroelectric, stormwater and street light utilities, parking system, refuse service, municipal athletic complex, and convention center, all of which are considered to be major funds of the City of St. Cloud. Conversely, all three internal service funds are presented as a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 39-48 of this report.

Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of the funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund statement can be found on page 49 and the combining statements on page 183 of this report.

Notes to the financial statements The notes provide additional information that is necessary to acquire 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 50-100 of this report.

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Overview of the Financial Statements (Continued) Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of St. Cloud’s progress in funding its obligation to provide post-employment benefits to its employees and net pension liability. Required supplementary information and notes can be found on page 101-110 of this report.

The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information on other post-employment benefits and net pension liability. Combining and individual fund statements and schedules can be found on pages 117-177 of this report.

Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of St. Cloud, assets and deferred outflows exceeded liabilities and deferred inflows by $481,369,813 at the close of the most recent fiscal year.

NET POSITION

Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019

Current and other assets $ 83,612,506 $ 78,664,394 $ 63,063,694 $ 63,648,278 $ 146,676,200 $ 142,312,672 Capital assets 257,973,094 261,291,101 334,409,444 339,165,360 592,382,538 600,456,461

Total assets 341,585,600 339,955,495 397,473,138 402,813,638 739,058,738 742,769,133

Deferred outflows of resources pension related 13,975,595 16,932,972 1,333,475 733,744 15,309,070 17,666,716

Total assets and deferred outflows of resources 355,561,195 356,888,467 398,806,613 403,547,382 754,367,808 760,435,849

Long-term liabilities outstanding 127,958,873 131,492,922 115,989,173 116,345,005 243,948,046 247,837,927 Other liabilities 9,379,912 10,044,706 4,834,418 4,659,347 14,214,330 14,704,053

Total liabilities 137,338,785 141,537,628 120,823,591 121,004,352 258,162,376 262,541,980

Deferred inflows of resources pension related 14,301,995 25,120,806 533,624 1,433,190 14,835,619 26,553,996

Net position: Net investment in capital assets 181,963,781 174,868,424 232,153,630 235,483,686 414,117,411 410,352,110 Restricted 12,218,759 11,999,483 - - 12,218,759 11,999,483 Unrestricted 9,737,875 3,362,126 45,295,768 45,626,154 55,033,643 48,988,280

Total net position $ 203,920,415 $ 190,230,033 $ 277,449,398 $ 281,109,840 $ 481,369,813 $ 471,339,873

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Government-Wide Financial Analysis (Continued)

NET POSITION (CONTINUED)

By far the largest portion of the City of St. Cloud’s net position of 86.1% reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City of St. Cloud uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the City of St. Cloud’s investment in 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.

An additional portion of the City of St. Cloud’s net position of 2.5% represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position of $55,033,643 or 11.4% may be used to meet the City’s ongoing obligations to its citizens and creditors.

The City of St. Cloud’s overall net position increased $10,029,940 from the prior fiscal year. The reasons for this overall decrease or increase are discussed in the following sections for governmental activities and business-type activities.

Governmental activities During the current fiscal year, net position for governmental activities increased $13,690,382 from the prior year’s balance of $190,230,033. When the COVID 19 pandemic began, the City immediately responded by implementing a hiring freeze for both full and part-time employees, limited overtime and imposed an “emergency repairs only” order. Those savings along with over $5.1 million in federal CARES funding were used to help offset the fiscal impacts of the pandemic. The St. Cloud Regional Airport also received $960,772 in economic relief from the CARES funds. Net position increased $6,375,749 as a result. Capital assets, net of related debt increased $7,095,357. The City added $10 million to construction in progress for the 2020 Improvement Construction Capital Infrastructure projects.

Business-type activities Business-type activities net position decreased $3,660,442 from the prior year’s balance of $281,109,840. Parking System operating revenues decreased $1,078,002 in 2020 due to the COVID 19 pandemic. Many of the downtown business that use our facilities were closed or required employees to work from home. The City also offered free parking for part of the year to help attract customers as businesses reopened. The River’s Edge Convention Center was impacted by the COVID 19 temporary shutdown and State imposed restrictions. Operating revenues decreased $1,132,540 as a result. The River’s Edge Convention Center also saw a $656,364 reduction in taxes which include both Food and Beverage tax and hotel motel tax. The Municipal Athletic Complex was also impacted by the COVID 19 shutdown and occupancy restrictions. Operating revenues decreased $388,051 from the previous year.

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Government-Wide Financial Analysis (Continued)

CHANGES IN NET POSITION

The following is a comparative analysis of the City of St. Cloud’s changes in net position for the current and prior fiscal years: Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019 Revenues: Program revenues: Charges for services $ 6,481,111 $ 7,859,831 $ 35,259,284 $ 36,435,616 $ 41, 740,395 $ 44,295,447 Operating grants and contributions 12,679,252 5,562,071 715,803 133,606 13, 395,055 5,695,677 Capital grants and contributions 7,150,516 8,976,636 2,368,699 3,319,287 9, 519,215 12,295,923 General revenues: Property taxes 28,479,282 27,189,751 - - 28, 479,282 27,189,751 Other taxes 12,352,653 12,939,276 1,678,535 2,361,833 14, 031,188 15,301,109 Grants and contributions not restricted to specific programs 13,727,980 12,869,777 - - 13, 727,980 12,869,777 Miscellaneous 1,108,876 1,479,035 902,098 1,351,617 2, 010,974 2,830,652

Total revenues 81,979,670 76,876,377 40,924,419 43,601,959 122, 904,089 120,478,336

Expenses: General government 7,391,607 7,467,995 - - 7, 391,607 7,467,995 Public safety 34,446,312 33,432,881 - - 34, 446,312 33,432,881 Public works 16,880,881 19,497,058 - - 16, 880,881 19,497,058 Culture and recreation 7,382,538 8,025,523 - - 7, 382,538 8,025,523 Economic development 3,435,252 1,565,935 - - 3, 435,252 1,565,935 Interest on long-term debt 1,914,768 2,125,254 - - 1, 914,768 2,125,254 Water utility - - 11,890,223 12,997,536 11, 890,223 12,997,536 Wastewater utility - - 12,936,150 12,994,606 12, 936,150 12,994,606 Hydroelectric utility - - 1,346,058 1,371,047 1, 346,058 1,371,047 Stormwater utility - - 2,758,926 3,062,844 2, 758,926 3,062,844 Street light utility - - 1,356,686 1,386,497 1, 356,686 1,386,497 Parking system - - 2,062,092 2,598,737 2, 062,092 2,598,737 Refuse service - - 3,977,753 3,943,439 3, 977,753 3,943,439 Municipal athletic complex - - 1,585,698 1,779,183 1,585,698 1,779,183 River's edge convention center - - 3,509,205 4,594,122 3,509,205 4,594,122

Total expenses 71,451,358 72,114,646 41,422,791 44,728,011 112, 874,149 116,842,657

Increase (decrease) in net position before transfers 10,528,312 4,761,731 (498,372) (1,126,052) 10, 029,940 3,635,679 Transfers 3,162,070 3,401,928 (3,162,070) (3,401,928) - -

Increase (decrease) in net position 13,690,382 8,163,659 (3,660,442) (4,527,980) 10, 029,940 3,635,679

Net position - January 1 190,230,033 182,066,374 281,109,840 285,637,820 471, 339,873 467,704,194

Net position - December 31 $ 203,920,415 $ 190,230,033 $ 277,449,398 $ 281,109,840 $ 481, 369,813 $ 471,339,873

19 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Government-Wide Financial Analysis (Continued)

2020 EXPENSES AND PROGRAM REVENUES – GOVERNMENTAL ACTIVITIES

Revenues $40,000,000 Expenses $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 General Public Public Culture and Economic Interest on Government Safety Works Recreation Development Long-Term Debt

2020 REVENUES BY SOURCE – GOVERNMENTAL ACTIVITIES

Other Taxes Property Taxes 15.1% 34.7% Grants and Contributions Not Restricted to Specific Programs 16.7% Miscellaneous 1.4% Charges for Services Capital Grants and 7.9% Contributions 8.7% Operating Grants and Contributions 15.5%

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Government-Wide Financial Analysis (Continued)

2020 EXPENSES AND PROGRAM REVENUES – BUSINESS-TYPE ACTIVITIES

Revenues $14,000,000 Expenses $12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000 $2,000,000 $0 Refuse Service System Parking Utility Athletic Utility Center Complex Utility Municipal Stormwater Street Light Street Convention River's Edge Wastewater Hydroelectric Water Utility Water

2020 REVENUES BY SOURCE – BUSINESS-TYPE ACTIVITIES

Charges for Operating Grants Services and Contributions 86.2% 1.7% Capital Grants and Contributions 5.8% Other Taxes 4.1% Miscellaneous 2.2%

21 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Financial Analysis of the Government’s Funds As noted earlier, the City of St. Cloud uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds The focus of the City of St. Cloud’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of St. Cloud’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City of St. Cloud itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City of St. Cloud’s Council.

At December 31, 2020, the City of St. Cloud’s governmental funds reported combined fund balances of $65,916,759, an increase of $6,416,586 from the prior year. Approximately 31.1% of this total amount or $20,472,328 constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either nonspendable, restricted, committed, or assigned to indicate that it is 1) not in spendable form $264,337, 2) restricted for particular purposes $13,345,693, 3) committed for particular purposes $3,287,148, or 4) assigned for particular purposes $28,547,253.

The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was $23,013,927, while total fund balance increased to $23,509,846. As a measure of the general fund’s liquidity, it is useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents approximately 48.08% of total general fund expenditures, while total fund balance represents approximately 49.12% of that same amount.

The fund balance of the City of St. Cloud’s general fund increased by $3,718,478 during the current fiscal year. In March of 2020, the City implemented a hiring freeze for both full and part-time employees, limited the use of overtime and imposed emergency repairs only in response to the COVID 19 pandemic saving over $1 million in general fund expenditures. The City’s general fund also received $4.8 million in CARES funding to spend on COVID 19 related public health and safety expenses including public safety salaries.

Fund balance in the Infrastructure Management capital projects fund decreased $646,444 due to a reduction in overall revenues.

The Improvement Construction capital projects fund balance increased $1,425,082 due to a reduction in ongoing project costs.

The Franchise Fee Development fund balance increased $743,288 due to franchise fee collections.

The Airport Operating fund balance increased $829,112 due to a reduction in expenditures related to the COVID 19 pandemic and the City’s hiring freeze. The St. Cloud Regional Airport also received $960,772 in CARES funding to provide economic relief specifically for airports.

22 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Financial Analysis of the Government’s Funds (Continued) Governmental funds (continued) The Local Sales Tax Projects fund balance increased $703,067. This fund was established in 2019 to account for collection of the ½% local sales tax that was approved through 2038. This fund will be used to fund future transportation, parks, and community facility projects.

Proprietary funds The City of St. Cloud’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

The unrestricted net position in the respective proprietary funds are Water Utility – $7,776,025, Wastewater Utility – $34,178,857, Hydroelectric Utility – $1,702,150, Stormwater Utility – $396,845, Street Light Utility – ($2,103,069), Parking System – $566,221, Refuse Service – $1,393,716, Municipal Athletic Complex – ($583,751), and River’s Edge Convention Center – $1,968,774. Other factors concerning the finances of the Proprietary Funds have been addressed in the discussion of the City of St. Cloud’s business-type activities.

General Fund Budgetary Highlights Original budget compared to final budget During the year there was a $568,200, or 1.17% increase in appropriations between the original and final amended budget. Following are the main components of the expenditure increase:

♦ The Police Department budget increased $174,600 due to additional expenditures associated with a grant the Police Department received in 2020.

♦ The Fire Department budget increased $387,600 due to additional expenditures association with the CARES grant.

Final budget compared to actual results The most significant differences between estimated revenues and actual revenues were as follows:

♦ Electric franchise fee revenues were $318,200 less than budget. Many businesses were temporarily shut down due to the COVID 19 pandemic which impacted electrical usage.

♦ License and permit revenue actuals were $340,476 less than budget. The City reduced license fees in 2020 for those businesses that were directly affected by the COVID 19 pandemic.

♦ Intergovernmental revenue actuals were $5,000,928 more than budgeted. The City’s general fund received over $4,273,000 in CARES Act grants in 2020.

♦ Engineering and Administration Fees were $683,116 less than the budgeted amount of $2,209,700. The City’s Engineering Department designs and oversees a number of projects internally and charges fees similar to those billed by private engineering firms. City staff saw less projects in 2020 due to the economic uncertainty with the COVID 19 pandemic. These engineering fees are reported as Charges for Services revenue in the General Fund.

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

General Fund Budgetary Highlights (Continued) Final budget compared to actual results (continued) ♦ Culture and Recreation Fees were $308,277 less than budget due the COVID 19 temporary closing and occupancy restrictions at our recreational facilities. These fees are also reported as Charges for Services in the General Fund

♦ Fine revenue was $385,982 under budget. Many of our downtown business were temporarily closed or had employees working from home due to the COVID 19 pandemic. The City did not enforce parking for several months and had limited staff for enforcement due to the hiring freeze. Court fines were reduced as court proceedings were also temporarily shutdown due to COVID 19.

Capital Assets and Debt Administration Capital assets The City of St. Cloud’s investment in capital assets for its governmental and business-type activities as of December 31, 2020, amounts to $592,382,538 (net of accumulated depreciation), a decrease of $8,073,923 or 1.34% in 2020. This investment in capital assets includes land, buildings, improvements, machinery and equipment, furniture and office equipment, infrastructure, and construction in progress.

The City has a significant level of outstanding commitments for capital expenditures at year end. These commitments are detailed on page 99 in the notes to the financial statements.

CAPITAL ASSETS (Net of Depreciation)

Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019

Land $ 48,359,925 $ 48,538,501 $ 11,757,022 $ 11,756,434 $ 60,116,947 $ 60,294,935 Buildings 74,461,882 77,471,962 117,389,269 110,494,300 191,851,151 187,966,262 Improvements and infrastructure 79,111,906 80,986,991 147,984,530 149,371,949 227,096,436 230,358,940 Machinery and equipment 9,383,784 9,656,274 49,233,225 36,566,494 58,617,009 46,222,768 Furniture and office equipment 3,356,304 1,532,317 845,965 570,117 4,202,269 2,102,434 Construction in progress 43,299,293 43,105,056 7,199,433 30,406,066 50,498,726 73,511,122

Total $ 257,973,094 $ 261,291,101 $ 334,409,444 $ 339,165,360 $ 592,382,538 $ 600,456,461

The City’s Governmental Activities capital assets decreased $3,318,007. Construction in progress increased $194,237 due to $11,653,260 in infrastructure construction, $413,071 in park projects, $466,622 towards a new City Hall and Airport projects of $356,419 being added to construction in progress; these additions were offset by the capitalization of $3,059,225 for the Airport north building site, $2,403,239 for the new ERP system, and $6,685,895 for finalized infrastructure projects. Buildings decreased $3,010,080 due to annual depreciation. Machinery and automotive equipment decreased $272,490 due to annual depreciation but included the purchase of $260,965 for a velocity patcher, $138,788 for a wheel loader unit, $123,530 for a 2020 International HV chassis and $328,796 for seven new squad cars. Other improvements including infrastructure decreased $1,875,085 due to annual depreciation. Additional information is provided in the capital asset note, pages 68-70.

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Capital Assets and Debt Administration (Continued) Capital assets (continued) The City’s Business-Type Activities capital assets decreased by $4,755,916 in 2020. Construction in progress decreased $23,206,633 due to the completion of the Wastewater Treatment Facility Nutrient Recovery and Reuse (NR2) project for $24,973,451, the Veterans Watermain project for $3,303,820, and the Hydro controls replacement of $1,343,200. Ongoing projects include the rehabilitation of several lift stations for $142,487, and the start of a multi-year project for the Water Treatment Facility Advanced Treatment Project for $5,474,086. Machinery and automotive equipment increased $464,432 for a new refuse and recycling truck and $502,678 for the Hydro controls project. Other improvements including infrastructure decreased $1,387,419 due to annual depreciation, but was offset by $2,767,561 in new water, wastewater, and storm water collection system improvements and ornamental lighting.

Long-term debt At the end of the current fiscal year, the City of St. Cloud had total bonded debt outstanding of $177,028,138 of this amount, $174,843,138 comprises debt backed by the full faith and credit of the government. The remainder of the City of St. Cloud’s debt represents bonds secured solely by specified revenue sources (i.e. taxable revenue bonds).

OUTSTANDING DEBT

Governmental Activities Business-Type Activities Total 2020 2019 2020 2019 2020 2019

General obligation (GO) $ 21,930,000 $ 24,405,000 $ - $ - $ 21,930,000 $ 24,405,000 GO improvement* 29,395,000 34,295,000 - - 29,395,000 34,295,000 GO tax increment 1,360,000 1,500,000 - - 1,360,000 1,500,000 GO sales tax revenue 9,700,000 11,430,000 - - 9,700,000 11,430,000 GO street reconstruction 10,750,000 11,285,000 - - 10,750,000 11,285,000 GO revenue bonds - - 36,000,000 37,525,000 36,000,000 37,525,000 GO revenue notes - - 65,708,138 65,198,800 65,708,138 65,198,800 Revenue - - 2,185,000 2,510,000 2,185,000 2,510,000

Total** $ 73,135,000 $ 82,915,000 $ 103,893,138 $ 105,233,800 $ 177,028,138 $ 188,148,800

*Special assessment bonds with governmental commitment. **Excludes unamortized premiums and discounts.

The City of St. Cloud’s total debt decreased by $11,120,662, or 5.91% during the current fiscal year.

The following bond were issued in 2020: ♦ $40,055,140 General Obligation Drinking Water Note, Series 2020A. The note is financed through the Public Facility Authority of the State of Minnesota at a fixed interest rate of 1.025% for the term of the note. The City is financing the Water Treatment Facility Advanced Process Improvement and Upgrade Project at the Water Treatment Facility. The final maturity date of the note will be August 20, 2040.

The City retired $16,886,000 of outstanding debt during 2020.

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MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Capital Assets and Debt Administration (Continued) Long-term debt (continued)

OUTSTANDING DEBT (CONTINUED)

The City’s Standard and Poor’s (S&P) bond rating is AA+ and reflects the City’s status as the area’s regional economic center with a diverse employment base and proactive management that has allowed for solid financial operations and moderate overall debt burden. The S&P bond ratings were most recently confirmed at AA+ on the 2019 General Obligation bond issues.

In 2016 the City issued $3,130,000 Taxable Hydroelectric Utility Revenue Bonds that were rated Aa2 by Moody’s. The rating reflects the Utility’s healthy operating trend, strong liquidity and governance ties to the City of St. Cloud.

Additional information on the City of St. Cloud’s long-term debt can be found in note III.B on pages 71- 77.

Economic Factors ♦ The unemployment rate for the City of St. Cloud for December 2020 was 5.6%, which is higher than the State of Minnesota average of 4.9% but lower than the national average of 6.5%. St. Cloud’s slighter higher unemployment rate stems from a strong investment in service-related professions and a regionally centered retail sector, although does include a broad base of job opportunities ranging from health care to manufacturing and industrial jobs.

♦ The City has had seven consecutive years with growth in the City’s market value. In 2020 the City’s tax base increased 4.2% from 2019. The City Assessor has projected a 5.1% increase in the tax base for 2021 and another increase in 2022. Residential properties are seeing valuation increases that average 4% and existing apartments are seeing approximately 14% increases. Commercial and industrial markets are seeing a slight increase in some valuations. New construction is steady in all areas.

♦ The City has authorization from the State of Minnesota for three special taxes: • The City of St. Cloud and surrounding cities of Sartell, Sauk Rapids, Waite Park, St. Joseph and St. Augusta were given authorization for a 20-year extension of the one-half percent local option sales tax. Voters in St. Cloud and the five area cities approved the extension of the sales tax. The first $900,000 of sales tax collected is split with $200,000 going to Airport Improvements, $200,000 towards Aquatic Center debt and $500,000 for various trail improvements which are all regional projects. The sales tax collected beyond the regional allocation is distributed to the participating cities by a formula agreed upon by the cities with 50% by population of each city, and 50% based on sales tax generated within each city. The City of St. Cloud’s share of sales tax collections in 2020 was $6,495,243, a decrease of $89,731 or 1.36%. The total local option sales tax generated by the St. Cloud area was $11,097,855. Collection of the one-half percent local sales tax will extend from January 1, 2019 to December 31, 2038.

26 CITY OF ST. CLOUD, MINNESOTA

MANAGEMENT’S DISCUSSION AND ANALYSIS December 31, 2020

Economic Factors (Continued) ♦ The City has authorization from the State of Minnesota for three special taxes: (continued) • The City has a 1% food and beverage tax that was initiated in 1986 and is authorized for debt and capital expenses for the City’s River’s Edge Convention Center and related facilities. The food and beverage tax currently pay the debt service on the River’s Edge Convention Center expansion debt (final maturity 2036) along with debt service on the related facilities – the Municipal Athletic Complex (final maturity 2023) and the Paramount Theatre (final maturity 2022). The City’s food and beverage tax collections were $1,287,691 in 2020, a decrease of $316,343 or 19.7%. The decrease is a direct result of the COVID 19 restrictions for bars and restaurants in 2020.

• The City has a 5% hotel/motel tax that was initiated in 1979 and increased in 1986 to support the River’s Edge Convention Center operations and to advance tourism in St. Cloud. The tax is allocated to the following areas: 52.5% to the St. Cloud Convention and Visitor’s Bureau, 40% to River’s Edge Convention Center operations, 3% to the Municipal Athletic Complex, 2% to Clemens Gardens operations, 1.5% to the St. Cloud Granite City Days Festival, and 1% to the City for administering the tax. The City’s 5% hotel/motel tax collections were $749,418 in 2020, a decrease of $850,026 or 53.14%. The decrease is due to the COVID 19 restrictions on the hospitality industry in 2020.

Requests for Information The financial report is designed to provide a general overview of the City of St. Cloud’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 400 Second Street South, St. Cloud, MN 56301.

27 CITY OF ST. CLOUD, MINNESOTA Statement A-1

STATEMENT OF NET POSITION December 31, 2020

Primary Government Governmental Business-Type Component Activities Activities Total Unit

Assets

Cash and investments (including cash equivalents) $ 66,105,376 $ 22,102,645 $ 88,208,021 $ 9,098,398 Cash and investments (including cash equivalents) with fiscal agent 507,877 - 507,877 1,272,494 Receivables (net) 11,068,343 2,052,153 13,120,496 171,904 Internal balances (3,966,956) 3,966,956 - - Unbilled accounts receivable - 3,706,606 3,706,606 - Due from other governmental units 4,126,721 2,870,935 6,997,656 208,435 Due from related entities - - - 583,135 Prepaid items 440,590 9,302 449,892 213,122 Inventories 18,228 1,331,799 1,350,027 - Land held for resale 5,312,327 - 5,312,327 825,823 Restricted notes receivable - 27,023,298 27,023,298 4,646,893 Capital assets Nondepreciable 91,659,218 18,956,455 110,615,673 2,798,834 Depreciable - net 166,313,876 315,452,989 481,766,865 19,579,112

Total Assets 341,585,600 397,473,138 739,058,738 39,398,150

Deferred Outflows of Resources

Pension related 10,160,415 441,345 10,601,760 - OPEB related 3,815,180 892,130 4,707,310 -

Total Deferred Outflows of Resources 13,975,595 1,333,475 15,309,070 -

Total Assets and Deferred Outflows of Resources $355,561,195 $398,806,613 $754,367,808 $39,398,150

(Continued)

28 CITY OF ST. CLOUD, MINNESOTA Statement A-1 (Continued) STATEMENT OF NET POSITION December 31, 2020

Primary Government Governmental Business-Type Component Activities Activities Total Unit

Liabilities

Accounts payable and other current liabilities $ 3,136,811 $ 2,550,063 $ 5,686,874 $ 311,131 Salaries payable 538,549 607,824 1,146,373 263,943 Security deposits payable - - - 336,450 Due to other governmental units 441,975 132,534 574,509 164,703 Due to related entities - 580,000 580,000 - Accrued interest and other liabilities 1,174,543 862,100 2,036,643 318,200 Unearned revenue 1,210,867 101,897 1,312,764 3,383,394 Noncurrent liabilities: Due within one year 13,092,167 8,117,550 21,209,717 398,981 Due in more than one year 75,287,389 97,658,485 172,945,874 4,858,866 Net pension liability 28,088,048 6,334,392 34,422,440 - Total OPEB liability 14,368,436 3,878,746 18,247,182 -

Total Liabilities 137,338,785 120,823,591 258,162,376 10,035,668

Deferred Inflows of Resources

Grants - - - 1,927 Pension related 13,402,700 290,861 13,693,561 - OPEB related 899,295 242,763 1,142,058 -

Total Deferred Inflows of Resources 14,301,995 533,624 14,835,619 1,927

Net Position

Net investment in capital assets 181,963,781 232,153,630 414,117,411 17,841,467 Restricted for: Capital projects 507,877 - 507,877 - Debt service 3,505,167 - 3,505,167 178,408 Economic development 8,205,715 - 8,205,715 - Other purposes - - - 4,636,983 Unrestricted 9,737,875 45,295,768 55,033,643 6,703,697

Total Net Position 203,920,415 277,449,398 481,369,813 29,360,555

Total Liabilities, Deferred Inflows of Resources and Net Position $355,561,195 $398,806,613 $754,367,808 $39,398,150

Notes to the financial statement are an integral part of this statement.

29 CITY OF ST. CLOUD, MINNESOTA

STATEMENT OF ACTIVITIES For the Year Ended December 31, 2020

Program Revenues Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions

Functions/Programs

Governmental activities: General government $ 7,391,607 $ 1,741,543 $ 728,949 $ - Public safety 34,446,312 2,190,175 6,640,694 233,277 Public works 16,880,881 2,051,815 2,167,264 6,857,576 Culture and recreation 7,382,538 416,887 926,127 39,663 Economic development 3,435,252 80,691 2,216,218 20,000 Interest on long-term debt 1,914,768 - - -

Total governmental activities 71,451,358 6,481,111 12,679,252 7,150,516

Business-type activities: Water utility 11,890,223 12,644,135 71,693 83,702 Wastewater utility 12,936,150 10,675,066 42,950 1,210,631 Hydroelectric utility 1,346,058 2,615,460 1,458 - Stormwater utility 2,758,926 1,630,710 130,396 706,212 Street light utility 1,356,686 1,331,941 3,983 - Parking system 2,062,092 757,899 11,047 - Refuse service 3,977,753 4,192,279 62,797 - Municipal athletic complex 1,585,698 838,979 59,204 - River's edge convention center 3,509,205 572,815 332,275 368,154

Total business-type activities 41,422,791 35,259,284 715,803 2,368,699

Total $ 112,874,149 $ 41,740,395 $ 13,395,055 $ 9,519,215

Component unit: $ 16,296,336 $ 3,240,379 $ 12,610,409 $ 126,285

General revenues: General property taxes Sales tax Tax increments Franchise taxes Grants and contributions not restricted to specific programs Investment earnings (loss) Gain on sale of capital assets (net with loss on disposal) Miscellaneous Special items Transfers

Total general revenues and transfers

Change in net position

Net position - January 1

Net position - December 31

Notes to the financial statement are an integral part of this statement. 30 Statement A-2

Net (Expense) Revenue and Changes in Net Position

Governmental Business-Type Component Activities Activities Total Unit

$ (4,921,115) $ - $ (4,921,115) $ - (25,382,166) - (25,382,166) - (5,804,226) - (5,804,226) - (5,999,861) - (5,999,861) - (1,118,343) - (1,118,343) - (1,914,768) - (1,914,768) -

(45,140,479) - (45,140,479) -

- 909,307 909,307 - - (1,007,503) (1,007,503) - - 1,270,860 1,270,860 - - (291,608) (291,608) - - (20,762) (20,762) - - (1,293,146) (1,293,146) - - 277,323 277,323 - - (687,515) (687,515) - - (2,235,961) (2,235,961) -

- (3,079,005) (3,079,005) -

$ (45,140,479) $ (3,079,005) $ (48,219,484) $ -

$ - $ - $ - $ (319,263)

$ 28,479,282 $ - $ 28,479,282 $ 465,065 6,922,677 1,609,941 8,532,618 - 892,773 68,594 961,367 - 4,537,203 - 4,537,203 - 13,727,980 - 13,727,980 - 1,079,918 902,098 1,982,016 118,216 28,958 - 28,958 - - - - 126,373 - - - (974,281) 3,162,070 (3,162,070) - -

58,830,861 (581,437) 58,249,424 (264,627)

13,690,382 (3,660,442) 10,029,940 (583,890)

190,230,033 281,109,840 471,339,873 29,944,445

$ 203,920,415 $ 277,449,398 $ 481,369,813 $ 29,360,555

31 CITY OF ST. CLOUD, MINNESOTA

BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2020

General

Assets: Cash and investments $ 23,675,134 Cash deposited with fiscal agent - Accounts receivable 875,839 Investment income receivable 160,365 Delinquent taxes receivable 236,026 Special assessments receivable: Delinquent 100,105 Noncurrent 145,420 Due from other governmental units 699,640 Due from other funds 177,953 Inventories 15,598 Prepaid items 225,603 Loans receivables - Advance to other funds - Land held for resale -

Total Assets $ 26,311,683

Liabilities: Accounts and contracts payable $ 689,110 Salaries payable 516,488 Due to other governmental units 431,951 Due to other funds - Unearned revenue 682,737 Advance from other funds -

Total Liabilities 2,320,286

Deferred Inflows of Resources: Unavailable revenue - property taxes 236,026 Unavailable revenue - special assessments 245,525 Unavailable revenue - grants -

Total Deferred Inflows of Resources 481,551

Fund Balances: Nonspendable 241,201 Restricted - Committed - Assigned 254,718 Unassigned 23,013,927

Total Fund Balances (Deficits) 23,509,846

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) $ 26,311,683

Notes to the financial statement are an integral part of this statement. 32 Statement B-1

Capital Projects Other Non-Major Total Infrastructure Improvement Governmental Governmental Management Construction Funds Funds

$ 11,123,245 $ 2,222,839 $ 24,304,799 $ 61,326,017 - - - 507,877 507, 877 20,799 - 387,832 1, 284,470 - - - - 160, 365 29,189 - 72,648 337, 863

72,206 - - 172, 311 7,957,678 - - 8, 103,098 194,815 208,942 3,023,324 4, 126,721 582,402 - 613,609 1, 373,964 - - - - 15,598 - - - 23,136 248, 739 - - - 70,157 70,157 1,726,750 - 83,308 1, 810,058 - - - 5,312,327 5, 312,327

$ 21,707,084 $ 2,431,781 $ 34,399,017 $ 84,849,565

$ - $ 841,594 $ 534,316 $ 2,065,020 - - 22,061 538, 549 - - 10,024 441, 975 - - 1,209,767 1, 209,767 300,000 - 226,470 1, 209,207 - - 2,365,000 2,460,058 4, 825,058

300,000 3,206,594 4,462,696 10,289,576

29,189 - 72,648 337,863 8,029,884 - - 8,275,409 - - 29,958 - 29,958

8,059,073 29,958 72,648 8,643,230

- - - 23,136 264, 337 - - - 13,345,693 13,345,693 - - - 3,287,148 3, 287,148 13,348,011 - 14,944,524 28,547,253 - - (804,771) (1,736,828) 20,472,328

13,348,011 (804,771) 29,863,673 65,916,759

$ 21,707,084 $ 2,431,781 $ 34,399,017 $ 84,849,565

33 CITY OF ST. CLOUD, MINNESOTA Statement B-2

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION December 31, 2020

Amounts reported for governmental activities in the statement of net position are different because:

Total governmental fund balances (pages 32-33) $ 65,916,759

Capital assets net of accumulated depreciation used in governmental activities are not current financial resources and, therefore, are not reported in the funds. Capital assets 499,804,215 Accumulated depreciation (241,831,121)

Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds. Delinquent property taxes receivable 337,863 Special assessment receivable 8,275,409 Grant revenue receivable 29,958

Internal service funds are used to charge the costs of services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 3,724,315

Governmental funds do not report a liability for accrued interest on long-tem debt until due and payable. (1,174,543)

Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Long-term liabilities at year-end consist of: Loans payable (3,754,702) Bonds payable (73,135,000) Bond premium (6,522,080) Compensated absences (4,967,774) Total OPEB liability (14,368,436) Net pension liability (28,088,048)

Deferred outflows of resources and deferred inflows of resources are created as a result of various differences related to pensions and OPEB that are not recognized in the governmental funds. Deferred outflows of resources related to pensions 10,160,415 Deferred inflows of resources related to pensions (13,402,700) Deferred outflows of resources related to OPEB 3,815,180 Deferred inflows of resources related to OPEB (899,295)

Net position of governmental activities (pages 28-29) $ 203,920,415

Notes to the financial statement are an integral part of this statement.

34 CITY OF ST. CLOUD, MINNESOTA

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Debt Service

Improvement General Bonds

Revenues: Taxes $ 23,580,074 $ - Licenses and permits 1,987,624 - Intergovernmental 22,421,528 - Charges for services 2,428,069 - Special assessments 102,174 - Fines 507,518 - Investment income (loss) 267,648 - Miscellaneous 97,095 -

Total Revenues 51,391,730 -

Expenditures: Current General government 5,233,052 - Public safety 32,517,353 - Public works 5,505,756 - Culture and recreation 3,255,651 - Economic development - - Capital outlay General government 70,520 - Public safety 755,394 - Public works 439,331 - Culture and recreation 84,866 - Debt service Principal - 4,900,000 Interest and fiscal charges - 1,115,181

Total Expenditures 47,861,923 6,015,181

Excess (Deficiency) of Revenues Over (Under) Expenditures 3,529,807 (6,015,181)

Other Financing Sources (Uses): Transfers in 300,000 6,015,181 Transfers out (129,534) - Proceeds from sale of capital assets 18,205 -

Total Other Financing Sources (Uses) 188,671 6,015,181

Net Change in Fund Balances 3,718,478 -

Fund Balance - January 1 19,791,368 -

Fund Balance - December 31 $ 23,509,846 $ -

Notes to the financial statement are an integral part of this statement.

35 Statement B-3

Capital Projects Other Non-Major Total Infrastructure Improvement Governmental Governmental Management Construction Funds Funds

$ 2,311,618 $ - $ 14,836,345 $ 40,728,037 - - 627,322 2,614,946 - 4,244,817 4,194,903 30,861,248 10,000 77,574 561,845 3,077,488 2,853,574 - - 2,955,748 - - - 507,518 239,866 36,822 439,940 984,276 - 2,077 394,633 493,805

5,415,058 4,361,290 21,054,988 82,223,066

- - 1,439,358 6,672,410 - - 49,316 32,566,669 288,464 28,945 1,058,426 6,881,591 - - 1,342,290 4,597,941 - - 3,310,423 3,310,423

- - 619,755 690,275 - - - 755,394 - 11,653,260 759,030 12,851,621 - - 533,664 618,530

- - 4,880,000 9,780,000 - - 1,847,362 2,962,543

288,464 11,682,205 15,839,624 81,687,397

5,126,594 (7,320,915) 5,215,364 535,669

242,143 9,049,793 2,330,001 17,937,118 (6,015,181) (303,796) (5,636,648) (12,085,159) - - 10,753 28,958

(5,773,038) 8,745,997 (3,295,894) 5,880,917

(646,444) 1,425,082 1,919,470 6,416,586

13,994,455 (2,229,853) 27,944,203 59,500,173

$ 13,348,011 $ (804,771) $ 29,863,673 $ 65,916,759

36 CITY OF ST. CLOUD, MINNESOTA Statement B-4

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2020

Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances - total governmental funds (pages 35-36) $ 6,416,586

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlays 14,915,820 Depreciation expense (15,493,769) Disposed assets (628,987) Capital asset transfer to enterprise funds (2,464,876) Capital contributions 353,805

Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds (741,467)

The issuance of long-term debt (e.g. bonds, leases) provides current resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction; however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Principal retirement 9,780,000

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. Net amortization of bond premium/discount 960,603 Change in accrued interest payable 87,172 Change in compensated absences (406,948) Other post-employment benefits (452,820)

Pension expenditures in the governmental funds are measured by current employee contributions. Pension expenses on the statement of activities is measured by the change in net pension liability and the related deferred inflows and outflows of resources. 1,186,772

The net expense of certain activities of the internal service funds is reported with governmental activities. 178,491

Change in net position of governmental activities (pages 30-31) $ 13,690,382

Notes to the financial statement are an integral part of this statement.

37 CITY OF ST. CLOUD, MINNESOTA Statement B-5

GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative)

Revenues: Taxes $ 24,049,100 $ 24,049,100 $ 23,580,074 $ (469,026) Licenses and permits 2,328,100 2,328,100 1,987,624 (340,476) Intergovernmental 16,852,400 17,420,600 22,421,528 5,000,928 Charges for services 3,600,500 3,600,500 2,428,069 (1,172,431) Special assessments 90,000 90,000 102,174 12,174 Fines 893,500 893,500 507,518 (385,982) Investment income (loss) 210,700 210,700 267,648 56,948 Miscellaneous 120,500 120,500 97,095 (23,405)

Total Revenues 48,144,800 48,713,000 51,391,730 2,678,730

Expenditures: Current General government 5,321,100 5,327,100 5,233,052 94,048 Public safety 32,361,700 32,658,700 32,517,353 141,347 Public works 5,927,900 5,927,900 5,505,756 422,144 Culture and recreation 3,956,900 3,956,900 3,255,651 701,249 Capital outlay General government 85,000 85,000 70,520 14,480 Public safety 400,000 665,200 755,394 (90,194) Public works 450,000 450,000 439,331 10,669 Culture and recreation 65,000 65,000 84,866 (19,866)

Total Expenditures 48,567,600 49,135,800 47,861,923 1,273,877

Excess (Deficiency) of Revenues Over (Under) Expenditures (422,800) (422,800) 3,529,807 3,952,607

Other Financing Sources (Uses): Transfers in 550,000 550,000 300,000 (250,000) Transfers out (142,200) (142,200) (129,534) 12,666 Proceeds from sale of capital assets 15,000 15,000 18,205 3,205

Total Other Financing Sources (Uses) 422,800 422,800 188,671 (234,129)

Net change in fund balances - - 3,718,478 3,718,478

Fund Balance - January 1 19,791,368 19,791,368 19,791,368 -

Fund Balance - December 31 $ 19,791,368 $ 19,791,368 $ 23,509,846 $ 3,718,478

Notes to the financial statement are an integral part of this statement.

38 CITY OF ST. CLOUD, MINNESOTA

PROPRIETARY FUNDS STATEMENT OF FUND NET POSITION December 31, 2020

Business-Type Activities - Enterprise Funds

Water Wastewater Hydroelectric Stormwater Utility Utility Utility Utility

Assets

Current Assets: Cash and cash equivalents $ 6,704,683 $ 5,202,553 $ 1,499,809 $ 724,700 Accounts receivable 534,186 436,802 189,524 53,583 Unbilled accounts receivable 1,596,554 1,110,849 - 267,514 Special assessments receivable 558,893 - - - Due from other governmental units 662,934 903,769 - 621,446 Due from other funds - 951,956 - - Inventories 565,353 275,954 248,532 - Prepaid items 1,512 630 315 3,060 Restricted note receivable - 2,185,307 - - Advance to other funds 1,165,000 1,200,000 - -

Total current assets 11,789,115 12,267,820 1,938,180 1,670,303

Noncurrent Assets: Advance to other funds 325,000 325,000 - - Restricted assets: Note receivable - 24,837,991 - -

Total noncurrent assets 325,000 25,162,991 - -

Capital Assets: Land 420,220 897,782 1,246,678 316,296 Buildings 56,291,715 55,826,956 13,192,397 - Furniture and office equipment 181,581 418,552 369,231 - Machinery and automotive equipment 16,995,635 46,769,197 6,822,130 1,568,304 Other improvements including infrastructure 88,540,882 138,910,637 7,113,774 71,527,495 Construction work in progress 5,647,178 385,179 - 1,167,076 Less accumulated depreciation (66,419,317) (94,760,392) (15,452,217) (62,640,824)

Total capital assets (net of accumulated depreciation) 101,657,894 148,447,911 13,291,993 11,938,347

Total noncurrent assets 101,982,894 173,610,902 13,291,993 11,938,347

Total Assets 113,772,009 185,878,722 15,230,173 13,608,650

Deferred Outflows of Resources: Pension related 116,221 116,594 7,241 24,680 OPEB related 345,178 214,152 - 31,913

Total deferred outflows of resources 461,399 330,746 7,241 56,593

Total Assets and Deferred Outflows of Resources $ 114,233,408 $186,209,468 $15,237,414 $13,665,243

39 Statement C-1

Governmental Business-Type Activities - Enterprise Funds Activities Municipal River's Edge Internal Street Light Parking Refuse Athletic Convention Service Utility System Service Complex Center Totals Funds

$ 825,578 $ 1,201,851 $ 2,691,997 $ - $ 3,251,474 $ 22,102,645 $ 4,779,359 42,700 1,524 207,312 14,465 13,164 1,493,260 940,079 203,474 - 528,215 - - 3,706,606 ------558,893 - - 54,439 3,000 - 625,347 2,870,935 - - - - - 35,959 987,915 - - 8,869 216,633 11,276 5,182 1,331,799 2,630 - - - - 3,785 9,302 191,851 - - - - - 2,185,307 ------2,365,000 -

1,071,752 1,266,683 3,647,157 25,741 3,934,911 37,611,662 5,913,919

- - - - - 650,000 -

- - - - - 24,837,991 -

- - - - - 25,487,991 -

- 3,855,937 - 699,153 4,320,956 11,757,022 - - 24,176,265 72,595 8,936,484 34,266,421 192,762,833 - - 43,456 - - 487,424 1,500,244 - 268,884 1,926,273 3,201,252 797,093 1,543,630 79,892,398 - 8,833,480 884,777 - 2,808,025 176,282 318,795,352 ------7,199,433 - (5,380,102) (8,175,837) (1,732,391) (8,601,152) (14,335,606) (277,497,838) -

3,722,262 22,710,871 1,541,456 4,639,603 26,459,107 334,409,444 -

3,722,262 22,710,871 1,541,456 4,639,603 26,459,107 359,897,435 -

4,794,014 23,977,554 5,188,613 4,665,344 30,394,018 397,509,097 5,913,919

9,045 23,903 79,941 25,306 38,414 441,345 - 6,648 54,858 139,639 26,598 73,144 892,130 -

15,693 78,761 219,580 51,904 111,558 1,333,475 -

4,809,707$ 4,809,707$ $ 24,056,315 $ 5,408,193 4,717,248$ $ 30,505,576 $ 398,842,572 $ 5,913,919

(Continued) 40 CITY OF ST. CLOUD, MINNESOTA

PROPRIETARY FUNDS STATEMENT OF FUND NET POSITION December 31, 2020

Business-Type Activities - Enterprise Funds

Water Wastewater Hydroelectric Stormwater Utility Utility Utility Utility

Liabilities

Liabilities: Current liabilities: Accounts payable $ 831,616 $ 439,375 $ 121,298 $ 783,483 Salaries payable 30,022 28,208 1,900 6,609 Compensated absences payable 195,009 97,816 - 4,784 Due to other governmental units 73,857 2,020 4,509 425 Due to other funds - - - - Due to component unit (current portion) - - - - Interest payable 182,737 304,266 6,864 - Unearned revenue - 200 - - Capital leases (current portion) - - - - Revenue bonds (current portion) - 630,000 335,000 - Notes from direct borrowing (current portion) 2,722,140 3,294,000 - -

Total current liabilities 4,035,381 4,795,885 469,571 795,301

Noncurrent liabilities: Compensated absences payable 207,046 92,377 - 9,426 Total OPEB liability 1,444,162 817,057 - 145,717 Net pension liability 1,668,059 1,673,404 103,928 354,222 Due to component unit (net of current portion) - - - - Revenue bonds (net of current portion) - 6,334,744 1,919,904 - Notes from direct borrowing (net of current portion) 23,158,998 36,533,000 - - Capital leases (net of current portion) - - - -

Total noncurrent liabilities 26,478,265 45,450,582 2,023,832 509,365

Total Liabilities 30,513,646 50,246,467 2,493,403 1,304,666

Deferred Inflows of Resources: Pension related 76,594 76,839 4,772 16,265 OPEB related 90,387 51,138 - 9,120

Total deferred inflows of resources 166,981 127,977 4,772 25,385

Net Position

Net Position: Net investment in capital assets 75,776,756 101,656,167 11,037,089 11,938,347 Unrestricted 7,776,025 34,178,857 1,702,150 396,845

Total Net Position 83,552,781 135,835,024 12,739,239 12,335,192

Total Liabilities, Deferred Inflows of Resources and Net Position $ 114,233,408 $186,209,468 $15,237,414 $13,665,243

Notes to the financial statement are an integral part of this statement.

41 Statement C-1 (Continued)

Governmental Business-Type Activities - Enterprise Funds Activities Municipal River's Edge Internal Street Light Parking Refuse Athletic Convention Service Utility System Service Complex Center Totals Funds

$ 5,839 $ 22,663 $ 298,678 $ 2,550 $ 44,561 $ 2,550,063 $ 1,071,791 2,299 6,806 20,051 4,339 9,777 110,011 - 2,014 14,856 80,676 33,989 68,669 497,813 - 158 3,857 44,694 1,930 1,084 132,534 - - - - 35,959 - 35,959 1,116,153 - - - - 285,000 285,000 - 64,500 44,445 - 1,610 257,678 862,100 - - 23,272 - - 78,425 101,897 1,660 - - - 146,410 - 146,410 - 325,000 280,000 - - 385,000 1,955,000 ------6,016,140 -

399,810 395,899 444,099 226,787 1,130,194 12,692,927 2,189,604

1,741 19,368 103,085 62,893 80,667 576,603 - 32,526 268,341 683,050 130,105 357,788 3,878,746 - 129,822 343,067 1,147,352 363,201 551,337 6,334,392 - - - - - 295,000 295,000 - 5,562,236 2,301,780 - - 20,968,613 37,087,277 -

- - - - - 59,691,998 - - - - 302,607 - 302,607 -

5,726,325 2,932,556 1,933,487 858,806 22,253,405 108,166,623 -

6,126,135 3,328,455 2,377,586 1,085,593 23,383,599 120,859,550 2,189,604

5,961 15,753 52,684 16,677 25,316 290,861 - 2,036 16,795 42,751 8,143 22,393 242,763 -

7,997 32,548 95,435 24,820 47,709 533,624 -

778,644 20,129,091 1,541,456 4,190,586 5,105,494 232,153,630 - (2,103,069) 566,221 1,393,716 (583,751) 1,968,774 45,295,768 3,724,315

(1,324,425) 20,695,312 2,935,172 3,606,835 7,074,268 277,449,398 3,724,315

4,809,707$ 4,809,707$ $ 24,056,315 $ 5,408,193 4,717,248$ $ 30,505,576 $ 398,842,572 $ 5,913,919

42 CITY OF ST. CLOUD, MINNESOTA

PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION For the Year Ended December 31, 2020

Business-Type Activities - Enterprise Funds

Water Wastewater Hydroelectric Stormwater Utility Utility Utility Utility

Operating Revenues: Sales and charges for services 12,511,975$ $ 10,611,107 $ 2,614,861 $ 1,629,952 Other 132,160 63,959 599 758

Total operating revenues 12,644,135 10,675,066 2,615,460 1,630,710

Operating Expenses: Personal services 3,059,779 2,841,620 162,003 594,057 Supplies 2,001,401 1,366,787 63,629 102,308 Other services and charges 1,979,124 1,562,601 511,247 416,095 Depreciation 4,465,367 6,336,181 530,819 1,645,001

Total operating expenses 11,505,671 12,107,189 1,267,698 2,757,461

Operating income (loss) 1,138,464 (1,432,123) 1,347,762 (1,126,751)

Nonoperating Revenues (Expenses): Investment income (loss) 83,903 578,783 25,829 6,455 Taxes - - - - Intergovernmental 71,693 42,950 1,458 130,396 Interest and fiscal charges (384,552) (805,645) (78,360) - Gain (loss) on exchange or disposal of capital assets - (23,316) - (1,465)

Total nonoperating revenues (expenses) (228,956) (207,228) (51,073) 135,386

Income (loss) before transfers and contributions 909,508 (1,639,351) 1,296,689 (991,365)

Capital contributions 609,551 2,462,144 - 1,014,150 Transfers in - - - - Transfers out (2,061,317) (3,495,976) (300,000) -

Change in net position (542,258) (2,673,183) 996,689 22,785

Net Position - January 1 84,095,039 138,508,207 11,742,550 12,312,407

Net Position - December 31 83,552,781$ $ 135,835,024 $12,739,239 $12,335,192

Notes to the financial statement are an integral part of this statement.

43 Statement C-2

Governmental Business-Type Activities - Enterprise Funds Activities Municipal River's Edge Internal Street Light Parking Refuse Athletic Convention Service Utility System Service Complex Center Totals Funds

$ 1,331,437 $ 757,886 4,191,551$ $ 837,530 $ 571,837 $ 35,058,136 $ 3,977,927 504 13 728 1,449 978 201,148 -

1,331,941 757,899 4,192,279 838,979 572,815 35,259,284 3,977,927

217,369 533,955 1,951,402 676,155 781,654 10,817,994 - 33,258 101,671 288,078 141,813 63,876 4,162,821 188,381 560,254 441,369 1,434,982 382,024 567,701 7,855,397 3,501,351 409,881 919,007 284,539 373,892 1,056,818 16,021,505 -

1,220,762 1,996,002 3,959,001 1,573,884 2,470,049 38,857,717 3,689,732

111,179 (1,238,103) 233,278 (734,905) (1,897,234) (3,598,433) 288,195

13,134 36,509 59,990 765 96,730 902,098 95,642 - 68,594 - 22,483 1,587,458 1,678,535 - 3,983 11,047 62,797 59,204 332,275 715,803 19,667 (135,924) (66,090) - (11,814) (1,039,156) (2,521,541) - - - (18,752) - - (43,533) -

(118,807) 50,060 104,035 70,638 977,307 731,362 115,309

(7,628) (1,188,043) 337,313 (664,267) (919,927) (2,867,071) 403,504

379,576 - - - 368,154 4,833,575 - 225,013 5,334 - 193,375 - 423,722 - - - - - (193,375) (6,050,668) (225,013)

596,961 (1,182,709) 337,313 (470,892) (745,148) (3,660,442) 178,491

(1,921,386) 21,878,021 2,597,859 4,077,727 7,819,416 281,109,840 3,545,824

$ (1,324,425) $ 20,695,312 2,935,172$ $ 3,606,835 $ 7,074,268 $ 277,449,398 $ 3,724,315

44 CITY OF ST. CLOUD, MINNESOTA

PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020

Business-Type Activities - Enterprise Funds

Water Wastewater Hydroelectric Stormwater Utility Utility Utility Utility

Cash Flows From Operating Activities: Cash received from customers 12,596,511$ $10,684,889 2,630,233$ 1,602,931$ Cash payments to suppliers for goods and services (4,345,400) (2,885,738) (624,185) (448,283) Cash payments to employees for services (2,960,224) (2,966,962) (165,382) (624,825)

Net Cash Provided by (Used in) Operating Activities 5,290,887 4,832,189 1,840,666 529,823

Cash Flows From Noncapital Financing Activities: Transfers in from other funds - - - - Transfer out to other funds - - (300,000) - Due to other funds - - - (100,764) Due from other funds 100,764 (239,502) - - Contributions and donations - - - - State and other local governmental unit grants 67,217 38,460 1,179 104,729 Principal paid - - - - Interest and fiscal fees paid - - - - Taxes - - - -

Net Cash Provided by (Used in) Noncapital Financing Activities 167,981 (201,042) (298,821) 3,965

Cash Flows From Capital and Related Financing Activities: Advances to other funds 900,000 900,000 - - Transfers in from other funds - - - - Transfers out to other funds (2,061,317) (3,495,976) - - State and other local governmental unit grants - 196,003 - 226,250 Issuance of capital debt 4,869,406 494,590 - - Interest on notes receivable - 455,085 - - Principal notes receivable - 2,225,141 - - Acquisition and construction of capital assets (3,751,732) (1,334,778) (947,700) (41,793) Principal paid (1,785,000) (4,081,000) (325,000) - Interest and fiscal fees paid (317,385) (866,186) (91,800) - Taxes - - - -

Net Cash Provided by (Used in) Capital and Related Financing Activities (2,146,028) (5,507,121) (1,364,500) 184,457

Cash Flows From Investing Activities: Investment income (loss) 85,228 123,698 25,829 6,455

Net Increase (Decrease) in Cash and Cash Equivalents 3,398,068 (752,276) 203,174 724,700

Cash and Cash Equivalents at Beginning of Year 3,306,615 5,954,829 1,296,635 -

Cash and Cash Equivalents at End of Year 6,704,683$ $ 5,202,553 1,499,809$ $ 724,700

45 Statement C-3

Governmental Business-Type Activities - Enterprise Funds Activities Municipal River's Edge Internal Street Light Parking Refuse Athletic Convention Service Utility System Service Complex Center Totals Funds

$ 1,312,934 $ 769,344 $ 4,178,079 $ 974,119 $ 586,827 $ 35,335,867 $ 3,525,913 (589,843) (578,711) (1,750,163) (561,349) (608,333) (12,392,005) (3,276,522) (223,899) (578,949) (2,041,795) (669,077) (1,098,554) (11,329,667) -

499,192 (388,316) 386,121 (256,307) (1,120,060) 11,614,195 249,391

225,013 5,334 - - - 230,347 ------(300,000) (225,013) - - - 35,959 - (64,805) 264,583 - - - - (35,959) (174,697) - - - - - (305,228) (305,228) - 3,635 10,127 56,719 58,230 30,796 371,092 19,667 (157,500) - - - - (157,500) - (80,006) - - - - (80,006) - - - - 24,708 329,412 354,120 -

(8,858) 15,461 56,719 118,897 19,021 (126,677) 59,237

- - - - - 1,800,000 - - - - 193,375 - 193,375 - - - - - (193,375) (5,750,668) - - - - - 225,881 648,134 ------5,363,996 ------455,085 ------2,225,141 - - (83,947) (468,887) - (73,379) (6,702,216) - (157,500) (270,000) - (153,013) (330,000) (7,101,513) - (80,006) (114,100) - (12,362) (1,031,558) (2,513,397) - - 69,311 - - 1,349,360 1,418,671 -

(237,506) (398,736) (468,887) 28,000 (53,071) (9,963,392) -

13,134 36,509 59,990 765 96,730 448,338 95,642

265,962 (735,082) 33,943 (108,645) (1,057,380) 1,972,464 404,270

559,616 1,936,933 2,658,054 108,645 4,308,854 20,130,181 4,375,089

$ 825,578 $ 1,201,851 $ 2,691,997 $ - $ 3,251,474 $ 22,102,645 $ 4,779,359

(Continued)

46 CITY OF ST. CLOUD, MINNESOTA

PROPRIETARY FUNDS STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020

Business-Type Activities - Enterprise Funds

Water Wastewater Hydroelectric Stormwater Utility Utility Utility Utility

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Operating income (loss) 1,138,464$ $ (1,432,123) 1,347,762$ $ (1,126,751)

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities Depreciation 4,465,367 6,336,181 530,819 1,645,001 Changes in assets and liabilities (Increase) decrease in accounts receivable (3,347) 13,598 14,773 1,790 (Increase) decrease in unbilled accounts receivable (99,557) 48,739 - (29,569) (Increase) decrease in assessments receivable 75,090 - - - (Increase) decrease in due from other governmental units (19,810) (52,414) - - (Increase) decrease in inventories (20,013) 27,901 (40,457) - (Increase) decrease in prepaids 1,901 1,470 199 (3,060) Increase (decrease) in accounts payable (347,500) 9,893 (9,036) 72,217 Increase (decrease) in salaries payable (61,949) (62,609) (2,307) (13,140) Increase (decrease) in compensated absences payable 66,814 7,352 - 712 Increase (decrease) in unearned revenue - (100) - - Increase (decrease) in net other postemployment benefits obligation (8,828) (18,748) - 5,847 Increase (decrease) in pension liability 107,811 (42,146) (723) (22,212) Increase (decrease) in due to other governmental units (3,556) (4,805) (364) (1,012)

Total adjustments 4,152,423 6,264,312 492,904 1,656,574

Net Cash Provided by (Used in) Operating Activities 5,290,887$ $ 4,832,189 1,840,666$ $ 529,823

Noncash Activities: Disposal of capital assets $ - $ 26,816 $ - $ 1,465 Contribution of capital assets from governmental funds 525,849 1,251,513 - 307,938 Contribution of capital assets from developers 83,702 871,300 - 109,483

Notes to the financial statement are an integral part of this statement.

47 Statement C-3 (Continued)

Governmental Business-Type Activities - Enterprise Funds Activities Municipal River's Edge Internal Street Light Parking Refuse Athletic Convention Service Utility System Service Complex Center Totals Funds

$ 111,179 $ (1,238,103) $ 233,278 $ (734,905) $ (1,897,234) $ (3,598,433) $ 288,195

409,881 919,007 284,539 373,892 1,056,818 16,021,505 -

1,731 14,891 (3,358) 114,674 104,700 259,452 (453,674) (20,738) - (24,120) - - (125,245) ------75,090 -

- 11,366 13,278 20,466 (23,153) (50,267) - - (8,869) (39,488) (1,768) (294) (82,988) - - - 93 94 80 777 (34,143) 3,349 (23,559) 4,214 (26,869) 25,318 (291,973) 447,353 (4,324) (38,713) (47,926) (24,524) (50,667) (306,159) - (765) 2,648 9,994 10,566 3,817 101,138 - - (14,812) - - (67,535) (82,447) 1,660

1,620 54,060 34,009 6,478 (33,443) 40,995 - (2,414) (59,805) (78,983) 17,482 (231,739) (312,729) -

(327) (6,427) 591 (11,893) (6,728) (34,521) -

388,013 849,787 152,843 478,598 777,174 15,212,628 (38,804)

$ 499,192 $ (388,316) $ 386,121 $ (256,307) $ (1,120,060) $ 11,614,195 $ 249,391

$ - $ - $ 29,297 $ - $ - $ 57,578 $ - 379,576 - - - - 2,464,876 ------1,064,485 -

48 CITY OF ST. CLOUD, MINNESOTA Statement D-1

CUSTODIAL FUNDS STATEMENT OF FIDUCIARY NET POSITION December 31, 2020

Assets Cash and investments $ 524,505 Due from other governmental units 984,648 Prepaid items 2,894

Total Assets 1,512,047

Liabilities Accounts payable 2 Due to other governmental units 970,448

Total Liabilities 970,450

Net Position $ 541,597

CUSTODIAL FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For The Year Ended December 31, 2020

Additions Miscellaneous income $ 106 Local sales tax collected for other governments 4,602,612 Intergovernmental 342,433 Investment income 10,272

Total additions 4,955,423

Deductions Supplies 81,491 Services and charges 157,403 Local sales tax distributed to other governments 4,602,612 Intergovernmental 77,602

Total deductions 4,919,108

Change in net position 36,315

Net Position - January 1 505,282

Net Position - December 31 $ 541,597

Notes to the financial statement are an integral part of this statement.

49 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of St. Cloud was incorporated March 1856 and is a home rule charter city under Minnesota Statutes.

Form of Government The municipal government provided by the amended charter is a strong mayor type government. Pursuant to its provisions and subject only to the limitation imposed by the constitution of statutes of the State of Minnesota and by the Home Rule Charter, all powers of the City are vested in a mayor and elective council, hereinafter referred to as the City Council, which enacts local legislation, adopts budgets and determines policies, all subject to the initiative, referendum and recall powers of the people. All powers of the City are to be exercised in the manner prescribed by the Home Rule Charter or by an ordinance adopted by the City Council.

Powers of the City The City of St. Cloud has all the powers of cities granted by common law, by the constitution and by the general laws of this State to municipal corporations and cities having a home rule charter, together with all the implied powers necessary to carry into execution all of the powers granted. The City may acquire property inside or outside its corporate limits for any city purpose; and may sell, lease, mortgage, hold, manage and control such property as its interests may require; and it may contract with the counties in which it is situated or with other municipalities for joint services and utilities that may seem desirable and for all other legitimate purposes.

A. Description of Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

B. Financial Reporting Entity The City of St. Cloud is a municipal corporation governed by an elected seven-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of St. Cloud (the primary government) and its component units. The definition of the reporting entity is based primarily on the notion of financial accountability. Blended component units, although legally separate entities, are, in substance, part of the City’s operations. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize it is legally separate from the City.

50 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) B. Financial Reporting Entity (Continued) Based upon the application of these criteria, the following is a brief review of the component units addressed in defining the City’s reporting entity.

Blended Component Unit The St. Cloud Economic Development Authority (EDA) was established in September 2010 pursuant to Minnesota Statutes 469.090 through 469.108 for the purpose of providing development services to the City of St. Cloud. The Economic Development function had been provided in previous years by the St. Cloud Housing and Redevelopment Authority (HRA). The governing body of the EDA consists of two council members and five commissioners appointed by the Mayor with the approval of the City Council. The City has financial oversight of EDA activities and the City also has operational responsibility for the EDA. Full-time staff of the EDA are direct employees of the City of St. Cloud. The activities of the EDA are reported in an operating fund, a revolving loan fund and TIF funds, which are nonmajor special revenue funds and two Business Park Funds, which are nonmajor capital project funds.

Discretely Presented Component Unit The Housing and Redevelopment Authority of St. Cloud (HRA) operates as a local government unit for the purpose of providing housing services to the St. Cloud area. The governing body of the HRA is appointed by the Mayor, subject to the approval of the City Council to serve five-year terms. The HRA’s property tax levy must be approved by the City Council. The HRA has a December 31 year-end.

Separately issued financial reports of the Housing and Redevelopment Authority may be obtained from the HRA Executive Director at the following address:

Housing and Redevelopment Authority of St. Cloud 1225 West St. Germain St. Cloud, MN 56301

Joint Ventures Central Minnesota Emergency Services Board The City is a participant in a joint powers agreement with the following counties: Benton, Big Stone, Douglas, Grant, Kandiyohi, Meeker, Mille Lacs, Morrison, Otter Tail, Pope, Stearns, Stevens, Swift, Todd, Traverse, Wadena, Wilkin, and Wright Counties for the activities of a Regional Emergency Services System. The Joint Powers Board is comprised of one City Council member from each city party and one County Commissioner from each county party to the agreement. This agreement is entered into by the parties to this agreement pursuant to the authority conferred upon the parties by Minnesota Statutes 403.39 and 471.59 for the purpose of providing regional administration of enhancements to the Statewide Public Safety Radio and Communication System (ARMER) owned and operated by the State of Minnesota.

51 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) B. Financial Reporting Entity (Continued) Joint Ventures (Continued) Central Minnesota Emergency Services Board (Continued) With that objective in mind, the Parties to this Agreement wish to collectively prepare and administer a plan which provides for the installation, operation, and maintenance of local and regional enhancements to the Statewide Public Safety Radio and Communication System (ARMER). This agreement may be utilized to provide joint purchase of common individual equipment needs. Joint purchases may occur when it is determined that standardization of equipment is in the best interests of the Parties to this Agreement or when other advantages might be achieved by joint purchases. The City of St. Cloud is the fiscal agent for the Central Minnesota Emergency Services Board.

Separately issued financial reports of the Central Minnesota Emergency Services Board may be obtained from the Fiscal Agent at the following address:

Central Minnesota Emergency Services Board 400 2nd Street South St. Cloud, MN 56301

City of St. Cloud/St. Cloud School District Fiber Optic Infrastructure Joint Powers Agreement The City is a participant in a joint powers agreement with the St. Cloud School District for the installation and maintenance of a fiber optic network to carry voice, data, and video between the various facilities. The agreement was entered into by the City and School District pursuant to the authority conferred upon the parties by Minnesota Statute 471.59. The Joint Powers Board is comprised of two City Council members appointed by the City and two School Board members appointed by the School District. The City and the School District each have 50% equity interest in the jointly used strands of fiber. The individual strands designed for the exclusive use of either the City or the School District is the responsibility of the party receiving the benefit of the use. There are sufficient resources on hand at year end to minimize any potential financial burden on participating governments in the future. Separate financial statements are not prepared for the City of St. Cloud/St. Cloud School District Fiber Optic Infrastructure Joint Powers agreement.

C. Basis of Presentation – Government-Wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business-type activities incorporate data from the government’s enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Interfund services provided and used are not eliminated in the process of consolidation.

52 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) D. Basis of Presentation – Fund Financial Statements The fund financial statements provide information about the government’s funds, including its fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.

The government reports the following major Governmental Funds:

♦ The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

♦ Improvement Bonds Debt Service Fund accounts for the payments made for principal and interest on bonds issued to finance improvement projects.

♦ The Infrastructure Management Capital Projects Fund accounts for the resources accumulated for financing the City’s annual improvement projects.

♦ The Improvement Construction Capital Projects Fund accounts for the resources and expenditures for the City’s construction costs for various improvements including water, sewer, storm sewer, street surfacing, and sidewalk improvements.

The government reports the following major Enterprise Funds:

♦ The Water Utility Fund accounts for the financial activity related to providing water service to the residents of the City.

♦ The Wastewater Utility Fund accounts for the financial activity related to providing sewer service to the residents of the City and surrounding communities.

♦ The Hydroelectric Utility Fund accounts for the financial activity relating to the operation of a hydroelectric facility located on the Mississippi River.

53 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) D. Basis of Presentation – Fund Financial Statements (Continued) The government reports the following major Proprietary Funds: (continued)

♦ The Stormwater Utility Fund accounts for the financial activity related to protecting and improving quality of local water resources and to maintain compliance with requirements by the U.S. Environmental Protection Agency.

♦ The Street Light Utility Fund accounts for the financial activity for the cost and maintenance of the City’s street lights. The revenue is generated through charges applied on the City’s utility bills to residents.

♦ The Parking System Fund accounts for the activities of several downtown City operated parking lots and ramps as well as on-street parking system.

♦ The Refuse Service Fund accounts for the activity related to a City operated refuse and recycling pick-up service for residential properties.

♦ The Municipal Athletic Complex (MAC) Fund accounts for the activity of a City operated MAC which includes two ice arenas, two baseball stadiums and an executive nine-hole golf course.

♦ The River’s Edge Convention Center Fund accounts for the activity of a City operated Convention Center and building maintenance costs of the Paramount Theatre.

Additionally, the government reports the following fund types:

♦ Internal Service Funds account for insurance, energy and information technology services provided to other departments of the City on a cost reimbursement basis.

♦ Custodial Funds account for the Local Area Sales Tax Fund for the area half-cent sales tax that the City of St. Cloud receives on behalf of neighboring cities. The Volunteer Fire Relief Investment Fund was established to account for the investments from the former St. Cloud Volunteer Firefighters Relief Association. The investments are held on behalf of the former members of the association. The Central Minnesota Emergency Services Board Fund was established to account for the pass-through revenue received by the City on behalf of 18 counties in the Central Minnesota Emergency Services System.

54 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) D. Basis of Presentation – Fund Financial Statements (Continued) During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities’ column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in the fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities’ column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column.

E. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. 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.

55 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) E. Measurement Focus and Basis of Accounting (Continued) The 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 government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). All other revenue items are considered to be measurable and available only when cash is received by the government.

The proprietary and custodial funds are reported using the economic resources measurement focus and the accrual basis of accounting.

F. Budgetary Information Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are legally adopted by Council resolution for the general and special revenue funds.

Formal budgetary integration is employed as a management control device during the year for the general fund and special revenue funds. Formal budgetary integration is not employed for debt service funds because effective budgetary control is alternatively achieved through general obligation bond indenture provisions. Budgetary control for capital projects funds is based on a project completion time cycle rather than an annual basis, therefore, budgetary comparisons on an annual basis would not present meaningful information.

56 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) F. Budgetary Information (Continued) The City follows these procedures in establishing the budgetary data reflected in the financial statements.

1. Budget requests are submitted by all department heads to the City Finance Department. The Finance Department compiles the budget requests into an overall preliminary City budget.

2. The preliminary budget is submitted to the Mayor and City Administrator for their review and/or modification. City administration balances expenditure requests with available revenue to present a balanced budget.

3. The City administration presents the proposed budgets to the City Council which in turn holds a public hearing on the budget. The budget process is set forth in Sec. 8.20 of the City Charter and truth in taxation laws adopted by the State of Minnesota. The budget resolution adopted by the City Council sets forth the budget at the department level for the General Fund, and the fund level for the Special Revenue funds.

4. Prior to December 31, the budget is legally enacted through the passage of the budget resolution adopted by the City Council.

5. Sec. 8.21 of the City Charter provides that after the budget has been duly adopted by the City Council, the Council shall not have the power to increase the total budget beyond estimated revenues, unless the actual revenues exceed the estimated revenues, and in that event, not beyond such actual revenues. The City Administrator and Director of Finance are authorized to approve transfers of appropriations between individual expenditure accounts within a department’s or fund’s budget.

6. Budget amounts are as originally adopted, and as amended by the City Council. Individual budget amendments were not material in relation to the original budget resolution adopted by the City Council. Budget appropriations lapse at the end of the City’s fiscal year.

G. Assets, Liabilities, Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position or Equity 1. Cash and Cash Equivalents 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 acquisitions.

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NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) G. Assets, Liabilities, Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position or Equity (Continued) 2. Investments Investments for the City are reported at the fair value hierarchy as described below.

3. GASB 72 Disclosure Certain investments for the City are reported at fair value as disclosed in Note III. 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.

4. GASB 79 Disclosure 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 seven days interest on the amount withdrawn. Seven days’ notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption.

5. Inventories, Prepaid Items, and Land Held for Resale Inventories are valued at cost using the first-in/first-out (FIFO) method and consists of expendable supplies and vehicle repair parts. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

Land was acquired by the City for subsequent resale for redevelopment purposes. Land held for resale is reported as an asset at lower of cost or estimated realizable value in the fund that acquired it.

58 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) G. Assets, Liabilities, Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position or Equity (Continued) 6. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital assets, except for infrastructure assets, are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. For infrastructure assets the same estimated minimum useful life is used (in excess of one year), but only those infrastructure projects that cost more than $50,000 are reported as capital assets.

In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the government chose to include all such items regardless of their acquisition date or amount. The government was able to estimate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year).

As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical costs. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets are recorded at acquisition value at the date of donation.

Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the primary government are depreciated using the straight-line method over the following estimated useful lives:

Capital Asset Classes Years Buildings 20-50 Machinery and equipment 3-20 Improvements 10-20 Infrastructure 20-40 Furniture and office equipment 3-10 Temporary easement Length of term or 5 years

59 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) G. Assets, Liabilities, Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position or Equity (Continued) 7. Deferred Outflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expenses) until then.

8. Deferred Inflows of Resources In addition to liabilities, the City’s financial statements report a separate section for deferred inflows of resources. This separate financial statement element reflects an increase in fund balance that applies to a future period. The City will not recognize the related revenue until a future event occurs.

9. Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net pension of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General Fund is typically used to liquidate the governmental net pension liability.

10. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

11. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance.

60 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) G. Assets, Liabilities, Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position or Equity (Continued) 11. Fund Balance Flow Assumptions (Continued) Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

12. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The government itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The governing council is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.

Amounts in the assigned fund balance classification are intended to be used by the government for specific purpose but does not meet the criteria to be classified as committed. The city council has by resolution authorized the city administrator and finance director to assign fund balance. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

The City will maintain an assigned and unassigned General fund balance within a range of 35% - 50%, with a target of 50% of budgeted operating expenditures; however, this need could fluctuate with each year’s budget objectives.

H. Revenues and Expenditures/Expenses 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues.

61 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Powers of the City (Continued) H. Revenues and Expenditures/Expenses (Continued) 2. Property Taxes Property tax levies are set by the City Council in December of each year and are certified to Stearns, Benton, and Sherburne Counties for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. The counties spread all levies over taxable property. Such taxes become a lien on January 1, of the following year, and are recorded as receivables by the City at that date. Revenues from property taxes are accrued and recognized in the year collectible, net of delinquencies.

Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes may be paid on February 28 and June 30. The counties provide tax settlements to cities and other taxing districts normally during the months of January, June and December.

Delinquent taxes receivable represents the past six years of uncollected tax levies. The net amount of delinquent taxes receivable is fully offset by unavailable revenue in the governmental funds of the fund financial statements because they are not known to be available to finance current expenditures.

3. Compensated Absences The government’s policy permits employees to accumulate earned but unused vacation and sick leave benefits. Depending on the bargaining group, varying amounts may be carried over to the next year or paid out upon separation from government service. The liability for such leave is reported as incurred in the government-wide and proprietary fund financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of employee resignations or retirements. The liability for compensated absences includes salary-related benefits, where applicable.

4. Proprietary Funds Operating and Nonoperating Revenues and Expenses 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 enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

62 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

A. Deficit Fund Equity The following funds had deficit balances at December 31, 2020:

Special Revenue Funds Franchise Fee Development $834,731 Gardens 110,263 TIF NABC Holdings/Tri County Abstract 18,602 TIF Model College 34,339

Debt Service Funds Enterprise Resource Planning (ERP) Bond $377

Capital Project Funds Improvement Construction $804,771 Tech High School/City Hall Renovation 582,402

Proprietary Funds Street Light Utility $1,324,425

Internal Service Funds Energy $219,508

The Franchise Fee Development fund has a deficit due to large one-time expenditure financed with an inter-fund loan, the deficit will be eliminated through future franchise fee collections. The Gardens fund deficit fund balance will be eliminated through operation changes and efficiencies. The TIF special revenue funds have deficit fund balances due to TIF collections being less than TIF debt payments. It is anticipated that these fund deficits will be eliminated in future years from additional tax increment collections.

The Enterprise Resource Planning (ERP) Bond debt service fund has a deficit fund balance due to the timing of property tax collections. The fund deficit will be eliminated in the next year.

The Improvement Capital Projects Fund has a deficit fund balance due to project financing not being completed as of December 31, 2020. The fund deficit will be eliminated through additional Federal and State grants. The Tech High School/City Hall Renovation fund deficit will be eliminated when project financing is completed in 2021.

63 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED)

A. Deficit Fund Equity (Continued) The Street Light Utility proprietary fund has a deficit net position due to a one-time nonoperating expense. The deficit will be eliminated through operational changes and energy efficiencies.

The Energy Internal Service Fund has a deficit net position due to the structure of the solar credits the City received. The deficit will be eliminated in future years.

III. DETAILED NOTES ON ALL FUNDS

A. Assets 1. Deposits and Investments (Including Cash Equivalents) Deposits Minn. Stat. Sec. 118A.02 and 118A.04 authorize the City to deposit its cash and to invest in certificates of deposit in financial institutions designated by the City Council. Minnesota statutes require that all City deposits be covered by insurance, surety bond, or collateral.

Custodial credit risk is the risk that in the event of bank failure, the City’s deposits may not be returned to it. The City has an investment policy in place to address custodial credit risk for deposits, stating that all deposits and investments must be in compliance with Minnesota Statutes 118A. As of December 31, 2020, the City’s bank balance was not exposed to custodial credit risk because it was fully insured and collateralized.

Investments Minn. Stat. Sec. 118A.04 and 118A.05 authorizes the types of securities available to the City for investment. The commercial paper investment as of December 31, 2020 represents an ongoing overnight sweep agreement arrangement at applicable daily quoted rates. Funds are re-deposited to City’s bank account at 8:00 a.m. on the ensuing business day. Authorized investments are the same for all fund types and include the following:

1. Securities which are direct obligations or are guaranteed or insured issues of the United States, its agencies, its instrumentality’s, or organizations created by an act of Congress, except mortgage-backed securities defined as “high risk” by Minn. Stat. Sec. 118A.04, subd. 6;

2. Mutual funds with shares of registered investment companies provided the mutual fund receives certain ratings depending on its investments;

3. General obligations of the State of Minnesota and its municipalities, and in certain state agency and local obligations of Minnesota and other states provided such obligations have certain specified bond ratings by a national bond rating service;

64 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

A. Assets (Continued) 1. Deposits and Investments (Including Cash Equivalents) (Continued) Investments (Continued) 4. Bankers’ acceptances of United States banks;

5. Commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the highest quality category by two nationally recognized rating agencies and matures in 270 days or less; and

6. With certain restrictions, in repurchase agreements, securities lending agreements, joint powers investment trusts, and guaranteed investment contracts.

As of December 31, 2020, the City had the following investments:

Weighted Average Fair Investment Type Maturity (Years) Value U.S. government securities 0.36 $ 3,001,200 Taxable municipal bonds 2.88 43,687,301 External investment pool 4-M fund N/A 23,568 Money market funds N/A 30,695,823 Overnight repurchase agreement - commercial paper N/A 10,842,766

Total investments 88,250,658

Deposits 745,473 Petty cash 14,550 Cash and cash equivalents with fiscal agent 229,722

Total cash and investments $ 89,240,403

These amounts are presented on the statement of net position as follows:

Cash and investments (including cash equivalents) $ 88,208,021 Cash and investments (with fiscal agent) 507,877

Total 88,715,898

These amounts are presented on the statement of fiduciary net position as follows:

Cash and investments 524,505

Total cash and investments $ 89,240,403

65 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

A. Assets (Continued) 1. Deposits and Investments (Including Cash Equivalents) (Continued) Investments (Continued) The City has the following recurring fair value measurements as of December 31, 2020:

• Securities of $30,695,823 classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. • Government securities of $3,001,200 and taxable municipal bonds of $43,687,301 are valued using a matrix pricing model (level 2 inputs).

2. Investment Risks The City’s investment policy is to follow Minnesota State Statutes as described above. This reduces the City’s exposure to credit, custodial credit, and interest rate risks. Specific risk information for the City is as follows:

Credit Risk The City’s investments in Federal Home Loan Bank and Federal National Mortgage Association were rated Aaa by Moody’s Investors Service and AAA by Standard and Poor’s. The City invests in a Money Market Fund, which is rated AA+ by Standard and Poor’s and Aaa by Moody’s Investor Service. The City’s investment policy does not address the rating requirements for mutual funds.

Custodial Credit Risk – Investments For an investment, this is the risk in the event of the failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City’s investment policy does not address this risk however at December 31, 2020, the City is not exposed to custodial credit risk; all investments are insured and are registered in the name of the government.

Interest Rate Risk The City’s investment policy states that interest rate risk may be minimized by structuring the investment portfolio so that securities mature to meet cash requirements as well as investing operating funds in shorter-term securities or money market funds.

Concentration Credit Risk The City was exposed to concentration of credit risk at December 31, 2020, due to the fact that their investments in Overnight Repurchases Agreement - Commercial paper (12.2%), individually exceeded five percent of the City’s total investments. The City’s investment policy also does not address this risk.

66 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

A. Assets (Continued) 3. Receivables Receivables as of year-end for the City’s individual major and non-major funds in the aggregate, are as follows:

Capital Projects Enterprise Infrastructure Water Wastewater Hydroelectric Stormwater Street Light General Management Utility Utility Utility Utility Utility

Accounts $ 875,839 $ 20,799 $ 534,186 $ 436,802 $ 189,524 $ 53,583 $ 42,700 Unbilled accounts - - 1,596,554 1,110,849 - 267,514 203,474 Investment income 160,365 ------Delinquent taxes 236,026 29,189 - - - - - Special assessments 245,525 8,029,884 558,893 - - - - Notes receivable - - - 27,023,298 - - -

Total receivables $ 1,517,755 $ 8,079,872 $ 2,689,633 $28,570,949 $ 189,524 $ 321,097 $ 246,174

Enterprise Municipal Parking Refuse Athletic Non-Major System Service Complex River's Edge Funds Total

Accounts $ 1,524 $ 207,312 $ 14,465 $ 13,164 $ 387,832 $ 2,777,730 Unbilled accounts - 528,215 - - - 3,706,606 Investment income - - - - - 160,365 Delinquent taxes - - - - 72,648 337,863 Special assessments - - - - - 8,834,302 Notes receivable - - - - - 27,023,298

Total receivables $ 1,524 $ 735,527 $ 14,465 $ 13,164 $ 460,480 $ 42,840,164

The City of St. Cloud has entered into multiple financing agreements with four other cities related to the financing of several capital improvement projects at the wastewater treatment facility (WWTF). The four other cities lease a percentage of the WWTF’s capacity and therefore are sharing in the costs of the projects. The financing of these projects is funded by either the issuance of a bond or by a loan from the Minnesota Public Facilities Authority (PFA) to the City of St. Cloud. The four other cities’ notes contain a schedule of maturities and specified interest rate that corresponds to the maturity schedules and interest rates of the St. Cloud loan agreements with PFA or the bond debt schedule. The obligation of the four cities to make schedule payments to St. Cloud pursuant to the cities’ notes is absolute and unqualified. Additions to notes receivable are recorded as capital contributions on the statement of revenues, expenses and changes in net position. Interest received from the notes receivable which is recorded as interest income for the year ended December 31, 2020 is $455,085.

67 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

A. Assets (Continued) 3. Receivables (Continued) Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred inflows of resources reported in the governmental funds were as follows:

Capital Projects Non-Major Infrastructure Improvement and Other General Management Construction Funds Total

Delinquent property taxes 236,026$ $ 29,189 $ - $ 72,648 $ 337,863 Special assessments not yet due 245,525 8,029,884 - - 8,275,409 Grant revenue - - 29,958 - 29,958

Total deferred inflows of resources 481,551$ $ 8,059,073 $ 29,958 $ 72,648 $ 8,643,230

4. Capital Assets Capital asset activity for the year ended December 31, 2020 was as follows:

Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land $ 48,538,501 $ - $ 178,576 $ 48,359,925 Construction in progress* 43,105,056 13,055,745 12,861,508 43,299,293

Total capital assets, not being depreciated 91,643,557 13,055,745 13,040,084 91,659,218

Capital assets, being depreciated: Buildings 116,958,626 368,006 2,495 117,324,137 Furniture and office equipment 5,254,156 2,485,455 113,818 7,625,793 Machinery and automotive equipment 37,004,744 1,616,518 264,867 38,356,395 Other improvements including infrastructure 237,144,578 7,694,094 - 244,838,672

Total capital assets, being depreciated 396,362,104 12,164,073 381,180 408,144,997

*The decrease in construction in progress is greater than the increase in capital assets due to assets contributed to proprietary funds.

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NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

A. Assets (Continued) 4. Capital Assets (Continued) Capital asset activity for the year ended December 31, 2020 was as follows: (Continued)

Beginning Ending Balance Increases Decreases Balance Governmental activities: (continued) Less accumulated depreciation for: Buildings $ 39,486,664 $ 3,378,086 $ 2,495 $ 42,862,255 Furniture and office equipment 3,721,839 661,468 113,818 4,269,489 Machinery and automotive equipment 27,348,470 1,885,036 260,895 28,972,611 Other improvements including infrastructure 156,157,587 9,569,179 - 165,726,766

Total accumulated depreciation 226,714,560 15,493,769 377,208 241,831,121

Total capital assets, being depreciated - net 169,647,544 (3,329,696) 3,972 166,313,876

Governmental activities capital assets - net $ 261,291,101 $ 9,726,049 $ 13,044,056 $ 257,973,094

Business-type activities: Capital assets, not being depreciated: Land $ 11,756,434 $ 588 $ - $ 11,757,022 Construction in progress 30,406,066 6,488,499 29,695,132 7,199,433

Total capital assets, not being depreciated 42,162,500 6,489,087 29,695,132 18,956,455

Capital assets, being depreciated: Buildings 180,836,219 11,953,239 26,625 192,762,833 Furniture and office equipment 1,181,229 333,699 14,684 1,500,244 Machinery and automotive equipment 64,487,052 15,867,445 462,099 79,892,398 Other improvements including infrastructure 312,501,689 6,374,831 81,168 318,795,352

Total capital assets, being depreciated 559,006,189 34,529,214 584,576 592,950,827

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NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

A. Assets (Continued) 4. Capital Assets (Continued) Capital asset activity for the year ended December 31, 2020 was as follows: (Continued)

Beginning Ending Balance Increases Decreases Balance Business-type activities: (continued) Less accumulated depreciation for: Buildings $ 70,341,919 $ 5,057,097 $ 25,452 $ 75,373,564 Furniture and office equipment 611,112 57,850 14,683 654,279 Machinery and automotive equipment 27,920,558 3,144,310 405,695 30,659,173 Other improvements including infrastructure 163,129,740 7,762,248 81,166 170,810,822

Total accumulated depreciation 262,003,329 16,021,505 526,996 277,497,838

Total capital assets, being depreciated - net 297,002,860 18,507,709 57,580 315,452,989

Business-type activities capital assets - net $ 339,165,360 $ 24,996,796 $ 29,752,712 $ 334,409,444

Depreciation expense was charged to functions/programs of the primary government as follows:

Governmental activities: General government $ 665,147 Public safety 1,985,474 Public works 9,670,548 Culture and recreation 3,172,600

Total depreciation expense - governmental activities $ 15,493,769

Business-type activities: Water utility $ 4,465,367 Wastewater utility 6,336,181 Hydroelectric utility 530,819 Stormwater utility 1,645,001 Street light utility 409,881 Parking system 919,007 Refuse service 284,539 Municipal athletic complex 373,892 River's edge convention center 1,056,818

Total depreciation expense - business-type activities $ 16,021,505

70 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities Long-Term Debt – Bonds 1. Changes in Long-Term Debt The following is a summary of bond transactions of the City for the year ended December 31, 2020:

Balance Balance 01/01/20 Issued Retired 12/31/20 Governmental Activities: General obligation bonds $ 24,405,000 -$ $ 2,475,000 $ 21,930,000 General obligation sales tax bonds 11,430,000 - 1,730,000 9,700,000 General obligation improvement bonds 34,295,000 - 4,900,000 29,395,000 General obligation tax increment bonds 1,500,000 - 140,000 1,360,000 General obligation street reconstruction bonds 11,285,000 - 535,000 10,750,000 Unamortized premiums 7,482,683 - 960,603 6,522,080 Total Governmental Activities 90,397,683 - 10,740,603 79,657,080 Business Type Activities: Revenue bonds 2,510,000 - 325,000 2,185,000 General obligation revenue bonds 37,525,000 - 1,525,000 36,000,000 Notes from direct borrowing (1) 65,198,800 5,765,338 5,256,000 65,708,138 Unamortized premiums 1,143,512 - 113,412 1,030,100 Unamortized discounts (186,470) - (13,647) (172,823) Total Business Type Activities 106,190,842 5,765,338 7,205,765 104,750,415 Total Government Bonds $ 196,588,525 $ 5,765,338 $ 17,946,368 $ 184,407,495

(1) = $34,581,024 of PFA loan principal anticipated to be withdrawn in future years.

71 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities (Continued) Long-Term Debt – Bonds (Continued) 2. Annual Requirements – Principal and Interest All Government Bonds included in the Governmental Activities carry the full faith and credit guarantee of the City. This includes Improvement Bonds financed primarily through special assessments.

The annual requirements to retire all bonded debt outstanding as of December 31, 2020:

Year Ending Governmental Activities Business-Type Activities December 31 Principal Interest Total Principal Interest Total 2021$ 10,215,000 $ 2,636,319 $ 12,851,319 $ 7,971,140 $ 2,651,921 $ 10,623,061 2022 9,660,000 2,223,879 11,883,879 9,280,000 2,686,414 11,966,414 2023 10,025,000 1,806,073 11,831,073 9,663,672 2,503,991 12,167,663 2024 8,655,000 1,422,939 10,077,939 9,808,350 2,304,981 12,113,331 2025 8,915,000 1,073,248 9,988,248 9,896,000 2,095,910 11,991,910 2026-2030 24,045,000 1,595,332 25,640,332 47,021,000 7,469,893 54,490,893 2031-2035 875,000 149,903 1,024,903 29,604,000 3,392,398 32,996,398 2036-2040 745,000 39,572 784,572 15,230,000 490,299 15,720,299 Total 73,135,000 10,947,265 84,082,265 138,474,162 23,595,807 162,069,969

Less (1) - - - (34,581,024) - (34,581,024)

Total $ 73,135,000 $ 10,947,265 $ 84,082,265 $ 103,893,138 $ 23,595,807 $ 127,488,945

(1) = PFA loan to be withdrawn in the future.

72 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities (Continued) Long-Term Debt – Bonds (Continued) 3. Bonds Outstanding Bonds payable at December 31, 2020, are comprised of the following individual issues:

PRIMARY GOVERNMENT

Interest Final Original Due Within Bond Description Rate Maturity Issued Outstanding One Year GOVERNMENTAL ACTIVITIES General Obligation Bonds: Equipment Certificates Series 2016A 2.00 to 5.00% 2026$ 3,085,000 $ 1,955,000 $ 300,000 Series 2016G 2.00 to 4.00 2026 4,990,000 3,470,000 540,000 Street Reconstruction Series 2017A 2.00 to 5.00 2029 3,280,000 2,920,000 270,000 Series 2018B 5.00 2029 4,060,000 3,785,000 345,000 Series 2019A 4.00 to 5.00 2030 4,045,000 4,045,000 285,000 Public Safety Facilities Refunding, Series 2017C 2.13 to 5.00 2028 19,565,000 16,505,000 1,730,000

Total General Obligation Bonds 39,025,000 32,680,000 3,470,000

Sales Tax Bonds: General Obligation Library Refunding, Series 2015B 4.00 to 5.00 2023 10,015,000 4,720,000 1,495,000 Tax Abatement YMCA/Aquatics Center, Series 2016B 2.00 to 4.00 2039 3,055,000 2,940,000 115,000 Beaver Island Trail Phase 3, Series 2016B 2.00 to 4.00 2029 2,230,000 2,040,000 200,000

Total Sales Tax Revenue Bonds 15,300,000 9,700,000 1,810,000

Improvement Bonds: General Obligation Infrastructure Management Series 2012B 2.00 2021 4,320,000 1,100,000 1,100,000 Series 2013A 3.00 to 4.00 2025 5,335,000 2,700,000 530,000 Series 2014A 2.00 to 4.00 2026 9,280,000 5,760,000 905,000 Series 2015A 3.00 to 5.00 2027 10,255,000 7,420,000 960,000 Series 2016E 2.00 to 4.00 2027 3,870,000 2,790,000 375,000 Refunding, Series 2016F 2.00 to 4.00 2027 6,200,000 3,765,000 520,000 Series 2018A 5.00 2029 3,800,000 3,735,000 365,000 Series 2019B 4.00 to 5.00 2030 2,125,000 2,125,000 40,000

Total Improvement Bonds 45,185,000 29,395,000 4,795,000

73 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities (Continued) Long-Term Debt – Bonds (Continued) 3. Bonds Outstanding (Continued)

PRIMARY GOVERNMENT (CONTINUED)

Interest Final Original Due Within Bond Description Rate Maturity Issued Outstanding One Year GOVERNMENTAL ACTIVITIES (CONTINUED) Tax Increment Bonds: General Obligation Refunding, Series 2011B 2.00 to 3.20% 2028$ 1,625,000 $ 885,000 $ 100,000 Refunding, Series 2012A 0.50 to 2.50 2031 730,000 475,000 40,000

Total Tax Increment Bonds 2,355,000 1,360,000 140,000

TOTAL GENERAL GOVERNMENTAL ACTIVITIES $ 101,865,000 $ 73,135,000 $ 10,215,000

BUSINESS TYPE ACTIVITIES Revenue Bonds: Hydroelectric Taxable, Series 2016H 3.00 to 4.00% 2026$ 3,130,000 $ 2,185,000 $ 335,000 General Obligation Wastewater Series 2013B 3.00 to 4.00 2029 5,140,000 3,450,000 330,000 Series 2016A 2.00 to 5.00 2031 4,285,000 3,170,000 300,000 Street Energy Tax Abatement, Series 2016B 2.00 to 4.00 2034 6,455,000 5,605,000 325,000 Parking Refunding, Series 2017B 4.00 to 5.00 2027 2,785,000 2,285,000 280,000 River's Edge Convention Center Taxable Tax Abatement Build America, Series 2010B 2.75 to 5.10 2036 22,315,000 21,490,000 385,000

Total Revenue Bonds $ 44,110,000 $ 38,185,000 $ 1,955,000

74 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities (Continued) Long-Term Debt – Bonds (Continued) 3. Bonds Outstanding (Continued)

PRIMARY GOVERNMENT (CONTINUED)

Interest Final Original Due Within Bond Description Rate Maturity Issued Outstanding One Year BUSINESS TYPE ACTIVITIES (CONTINUED) Notes from Direct Borrowing: Water Series 2004A 2.59% 2023$ 1,381,672 $ 265,672 $ 86,000 Series 2005C 2.53 2024 2,527,278 620,350 149,000 Series 2009 2.48 2028 7,015,400 2,931,000 336,000 Series 2010 1.66 2030 7,736,790 4,179,000 388,000 Series 2015C 1.00 2035 11,407,533 8,977,000 558,000 Series 2016D 1.00 2031 4,643,022 3,434,000 297,000 Series 2020A 1.03 2040 40,055,140 5,474,116 908,140 Wastewater Series 2010 1.77 2030 40,115,015 22,411,000 2,068,000 Series 2016C 1.00 2026 4,062,885 2,653,000 431,000 Series 2017D 1.10 2037 16,712,029 14,763,000 795,000

Total Notes from Direct Borrowing $ 135,656,764 $ 65,708,138 $ 6,016,140

TOTAL BUSINESS TYPE ACTIVITIES $ 179,766,764 $ 103,893,138 $ 7,971,140

TOTAL BONDS OUTSTANDING - PRIMARY GOVERNMENT* $ 281,631,764 $ 177,028,138 $ 18,186,140

*Excludes unamortized premiums and discounts.

The City pledged future hydroelectric facility revenues, as specified in the bond document, to repay $3,130,000 Hydroelectric Revenue Bonds issued in 2016. Proceeds from the bonds provided financing for improvements to the hydroelectric generation facility. The bonds are payable solely from hydroelectric facility revenues and are payable through 2026. Annual principal and interest payments on the bonds are expected to require less than 20% of net revenues. In 2020, the actual percentage was 15.9. The total principal and interest remaining to be paid on the bonds is $2,489,550. Principal and interest paid for the current year and total customer net revenues were $415,350 and $2,615,460 respectively.

75 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities (Continued) Long-Term Debt – Other 1. Changes in Long-Term Debt – Other Changes in long-term debt other than bonds for the year ended December 31, 2020 is as follows:

Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Compensated absences 4,560,826$ 3,263,359$ 2,856,411$ 4,967,774$ 2,877,167$ Loans payable 3,754,702 - - 3,754,702 -

Total Governmental Activities 8,315,528$ 3,263,359$ 2,856,411$ 8,722,476$ 2,877,167$

Business Type Activities: Compensated absences 973,279$ 710,910$ 609,773$ 1,074,416$ 497,813$ Capital leases 602,030 - 153,013 449,017 146,410

Total Business Type Activities 1,575,309$ 710,910$ 762,786$ 1,523,433$ 644,223$

The General Fund has historically been used to liquidate the outstanding governmental activity compensated absences.

2. Loans Payable – Governmental The City assumed loan obligations to St. Cloud Opportunities and East Central Energy from the St. Cloud HRA in the amount of $3,754,702 at the end of 2010. The loans represent amounts used to acquire and develop a 355-acre tract of land called the Airport Business Park. Payment on the loans will be made solely with the proceeds from the sale of lots on the property or from other project related resources. Because payments are made from sales proceeds, liabilities are recorded only in an amount equal to the land held for resale.

3. Capital Lease Obligations In May of 2016, the capital lease originally entered into in 2008 for energy improvements at the Municipal Athletic Complex was refinanced through US Bank lowering the annual payment to $155,487, resulting in an annual savings of $18,427. The refinanced capital lease obligation totaled $1,069,625. The energy improvement capital asset is valued at $1,775,271. Depreciation expense for 2020 is $88,764, total accumulated depreciation for the energy improvement is $976,399.

76 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

B. Liabilities (Continued) Long-Term Debt – Other (Continued) 4. Requirements to Maturity The following is a schedule of annual requirements to retire all long-term debt – other outstanding as of December 31, 2020:

Governmental Business-Type Activities Activities Year Ending December 31 Loan Capital Lease 2021 -$ $ 155,487 2022 - 155,487 2023 - 155,487 2024 - - 2025 - - 2026-2030 3,754,702 - Total 3,754,702 466,461 Less: amount representing interest - (17,444) Present value of net minimum lease payments $ 3,754,702 $ 449,017

5. Conduit Debt Obligations From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. The amount of outstanding conduit debt at December 31, 2020 is not readily available.

77 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

C. Summary of Interfund Balances Advance To/From Other Funds Advance To Advance From Other Funds Other Funds Infrastructure Management Capital Projects$ 1,726,750 (2) -$ Improvement Construction Capital Projects - (1) 2,365,000 Non-Major Governmental 83,308 (2) 2,460,058 Water Utility 1,165,000 (1) - Water Utility 325,000 (2) - Wastewater Utility 1,200,000 (1) - Wastewater Utility 325,000 (2) - Total $ 4,825,058 $ 4,825,058

(1) = Construction advance (2) = Economic development advance Due From/To Other Funds Due From Due To Other Funds Other Funds General $ 177,953 (1) -$ Infrastructure Management Capital Projects 582,402 (1) - Non-Major Governmental 613,609 (1) 1,209,767 Water Utility - (1) - Wastewater Utility 951,956 (1) - Municipal Athletic Complex - (1) 35,959 River's Edge Convention Center 35,959 (1) - Internal Service - (1) 1,116,153 Total $ 2,361,879 $ 2,361,879

(1) = Provide funding for negative cash at year end.

78 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

C. Summary of Interfund Balances (Continued) Interfund Transfers

Transfers In Reported In Fund Transfers Out Reported In Fund Amount General Hydroelectric utility enterprise 300,000$ (1) Infrastructure management capital projects Improvement construction capital projects 242,143 (2) Other non-major governmental General 124,200 (1) Improvement construction capital projects 61,653 (1),(2) Other non-major governmental 2,136,648 (1),(2) Wastewater utility enterprise 7,500 (1) Improvement bonds debt service Infrastructure management capital projects 6,015,181 (2) Improvement construction capital projects Other non-major governmental 3,500,000 (2) Water utility enterprise 2,061,317 (2) Wastewater utility enterprise 3,488,476 (2) Street light utility enterprise Internal service 225,013 (2) Parking system enterprise General 5,334 (1) Municipal athletic complex enterprise River's edge convention center enterprise 193,375 (1),(2) Total 18,360,840$

Transfers in, reported in Statement of revenues, expenditures, and changes in fund balance (B-3) 17,937,118$ Statement of revenues, expenses, and changes in fund net position (C-2) 423,722 Total 18,360,840$

Net transfers in, reported in Statement of revenues, expenditures, and changes in fund balance (B-3) 5,851,959$ Transfer from governmental to business-type (C-3) (225,013) Capital contributions from governmental to business-type (C-3) (2,464,876) Net transfers in, reported in Statement of activities (A-2) 3,162,070$

(1) = Budgeted or council approved transfer (2) = Transfer for debt service payments, participation in projects, and cost sharing of expenditures

79 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

III. DETAILED NOTES ON ALL FUNDS (CONTINUED)

D. Components of Fund Balance At December 31, 2020, portions of the City’s fund balance are not available for appropriation due to balances that cannot be spent (Non-spendable), legal restrictions (Restricted), City Council action (Committed), policy and/or intent (Assigned). The following is a summary of the components of fund balance:

Infrastructure Improvement Other Management Construction Non-Major General Capital Projects Capital Projects Governmental Nonspendable Inventory $ 15,598 -$ -$ -$ Prepaid items 225,603 - - 23,136 Restricted ERP project - - - 507,877 Debt service payments - - - 4,638,060 Economic development - - - 5,959,604 Tax increment financing - - - 2,240,152 Committed Library operations - - - 251,748 Airport Operations - - - 734,562 Development - - - 380,435 Park development and gardens - - - 680,887 Senior programs - - - 111,813 City festivals - - - 61,177 Fire hazardous materials - - - 4,380 Metro area network - - - 94,272 Cable TV access - - - 967,874 Assigned Debt service payments - 13,348,011 - - Park improvements - - - 2,425,125 Community facilities - - - 1,725,168 Senior programs 254,718 - - - Infrastructure improvements - - - 10,794,231 Unassigned 23,013,927 - (804,771) (1,736,828)

Total Fund Balance $ 23,509,846 $ 13,348,011 $ (804,771) $ 29,863,673

80 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION

A. Risk Management Worker’s Compensation The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and disasters. The City participates in a group worker’s compensation plan with the League of Minnesota Cities Insurance Trust (LMCIT), which is a public entity risk pool currently operating as a common risk management and insurance program for member Minnesota cities. The plan is administered by Berkley Administrators.

The worker’s compensation plan is self-sustaining based on the premiums charged, so that total contributions plus compounded earnings on these contributions will equal the amount needed to satisfy claims liabilities and other expenses. The City has entered into a paid loss retro plan with LMCIT whereby the City’s premium depends in part on the actual losses incurred during the year. The City pays a basic premium in monthly installments and at the end of each month LMCIT invoices the City for claims paid during that period. Each department is charged their share of the premium cost based upon salary and worker’s compensation class code. The payments for the paid loss retro plan are made out of the Self-Insurance Internal Service Fund.

Year Ended 2020 2019 Beginning of year liability $ 0 $ 9,208 Current year claims and administration 948,285 932,162 Claim payments (497,590) (941,370)

End of year liability $ 450,695 $ 0

Dental Insurance The City contracts with HealthPartners to administer a self-insured dental benefits plan for its employees. The City sets annual premiums based on the recommendation of the plan administrator, and accumulates premiums collected from all funds in the Self Insurance Internal Service Fund. All claims are processed through HealthPartners, who bills the City monthly for the actual dental costs incurred by covered employees. The payments to HealthPartners are made out of the premiums accumulated in the Self- Insurance Internal Service Fund.

Year Ended 2020 2019 Beginning of year liability $ 19,619 $ 16,228 Current year claims and administration 492,066 551,742 Claim payments (492,079) (548,351)

End of year liability $ 19,606 $ 19,619

81 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

A. Risk Management (Continued) Health Insurance On January 1, 2013 the City consolidated all health insurance coverage with HealthPartners and established a self-insurance program. The program is funded by the City contributions, employee payroll withholding, and payments from retired City employees that remain on the City’s insurance plan. The funds are deposited in the Self Insurance Internal Service Fund from which all claims plus an administration fee are charged. Stop-loss coverage is in effect for individual claims exceeding $100,000. The current minimum aggregate attachment point for the current year was set at $8,503,236, which is 125% of the expected claims for the plan year.

Changes in the health insurance liability for claims and administration fees for the health insurance program for the Self Insurance Internal Service Fund are as follows:

Year Ended 2020 2019 Beginning of year liability $ 483,527 $ 264,099 Current year claims and administration 8,177,046 8,629,010 Claim payments (8,204,228) (8,409,582)

End of year liability $ 456,345 $ 483,527

The City continues to carry commercial insurance for employee standard liability, property, and automotive insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. There were no significant reductions in insurance coverage from the previous year.

B. Post-employment HealthCare Plan 1. Plan Description The City’s defined OPEB plan provides a single employer defined benefit healthcare plan to eligible retirees and their spouses. The plan offers medical coverage. Medical coverage is administered by HealthPartners. It is the City’s policy to periodically review its medical coverage, and to obtain requests for proposals in order to provide the most favorable benefits and premiums for City employees and retirees. No assets are accumulated in a trust.

In addition, the City provides retiree health care benefits in accordance with various union contracts, relief association bylaws, and state statutes. The City’s obligation for post-retirement benefits are all financed on a pay-as-you-go basis. The General Fund is typically used to liquidate governmental OPEB liabilities.

82 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

B. Post-employment HealthCare Plan (Continued) 2. Contributions Retirees and their spouses contribute to the healthcare plan at the same rate as City employees, except as described below. This results in the retirees receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the contract terms with HealthPartners. Contributions of $976,978 for 2020 were paid according to the following agreements:

a. St. Cloud Firefighter’s Relief Association Members The City’s obligation for retired employees who were members of the St. Cloud Firefighter’s Relief Association consists of the payment of 100% of the health and dental insurance benefits for the retiree (minimum age 50) and surviving spouse for life. The authority for the payment of this obligation resulted from special state legislation. Expenditures for the retiree and surviving spouse health care benefits are recognized as claims are paid and are recorded as current expenditures in the Fire Department in the General Fund. The City of St. Cloud provided coverage to 13 retirees and surviving spouses during 2020 at a cost of $153,925.

b. St. Cloud Firefighter’s Consolidated PERA Members The firefighters of the former St. Cloud Firefighter’s Relief Association merged with PERA under their Consolidation Fund in 1991. The City’s obligation for these members was to provide health and dental insurance benefits for retirees and surviving spouses for life. However, the City and 17 members of the PERA Fire Consolidation Plan entered into an agreement to buy out the health coverage for life. The PERA consolidation members will receive 100% of the payment of the health and dental insurance benefits for the retiree from the age of retirement (minimum age 50) until age 65. Expenditures for the retiree health benefits are recognized as current expenditures in the Fire Department in the General Fund. The City provided coverage to one retiree during 2020 at a cost of $8,800.

c. St. Cloud PERA Firefighter Members The City’s obligation for retired PERA firefighters who were hired before July 23rd, 2001 consists of payment of 90% of the health insurance costs from age of retirement during any five-consecutive year period following the date of retirement up to age 65 for fire captains and during the five- consecutive year period immediately following retirement up to age 65 for fire fighters. Also, the City will pay for coverage on behalf of the retired employee (up to age 65) at the rate of 50% of the cost of the premium during the year following the five years designated by the employee.

83 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

B. Post-employment HealthCare Plan (Continued) 2. Contributions (Continued) c. St. Cloud PERA Firefighter Members (Continued) The authority for the payment of this obligation is from the union contract or in accordance with State Statute §299A.465; when a police officer or firefighter is disabled in the line of duty, the City is responsible for the continued payment of the employer's contribution for health insurance coverage of the officer or firefighter and, if applicable, their dependents until the officer or firefighter reaches or, if deceased, would have reached the age of 65. Expenditures for retiree health care benefits are recognized as claims are paid and are recorded as current expenditures in the Fire Department in the General Fund. The City provided coverage to 15 retirees, three due to disability, during 2020 at a cost of $250,278.

d. St. Cloud PERA Police Members The City’s obligation for retired PERA police members who were hired before January 1st, 1999 consists of payment of 90% of the health insurance costs from age of retirement during any five-consecutive year period following the date of retirement up to age 65. Also, the City will pay for coverage on behalf of the retired employee (up to age 65) at the rate of 50% of the cost of the premium during the year following the five years designated by the employee.

The authority for the payment of this obligation is from the union contract or in accordance with State Statute §299A.465; when a police officer or firefighter is disabled in the line of duty, the City is responsible for the continued payment of the employer's contribution for health insurance coverage of the officer or firefighter and, if applicable, their dependents until the officer or firefighter reaches or, if deceased, would have reached the age of 65. Expenditures for retiree health care benefits are recognized as claims are paid and are recorded as current expenditures in the Police Department in the General Fund. The City provided coverage to 20 retirees, seven due to disability, during 2020 at a cost of $292,151.

e. St. Cloud AFSCME Members The City’s obligation for retired AFSCME members who were hired before January 1, 2002, consists of the payment of 90% of the health insurance costs from the age of retirement (minimum age 55) during any five- consecutive year period following the date of retirement up to age 65. Also, the City will pay for coverage on behalf of the retired employee (up to age 65) at the rate of 50% of the cost of the premium during the year following the five years designated by the employee.

84 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

B. Post-employment HealthCare Plan (Continued) 2. Contributions (Continued) e. St. Cloud AFSCME Members (Continued) AFSCME employees who were hired after January 1, 2002, will earn one year of retiree insurance for each five-year increment of service for the first twenty years of service. After twenty years of service, an employee will gain six months of insurance coverage for each two and one-half years of service. The maximum coverage available under this benefit shall be six years. AFSCME employees hired after January 1, 2007 must have a minimum of 20 years of service to qualify for these benefits. AFSCME employees hired after January 1, 2013 are not eligible for any City paid retiree health insurance.

The authority for the payment of this obligation is from the AFSCME union contract. Expenditures for retiree health care benefits are recognized as current expenditures in the appropriate department. The City provided coverage to 18 retirees in 2020 at a cost of $237,531.

f. Unclassified and Classified Non-Bargaining Employees The City’s obligation for retired unclassified and classified non-bargaining employees who were appointed prior to August 6, 2001, consists of the payment of 100% of the cost of single health insurance coverage or 90% of the cost of family coverage during the five-consecutive year period immediately following the date of retirement up to age 65. Also, the City will pay for coverage on behalf of the retired employee (up to age 65) at a rate of 50% of the premium cost during the year following the five years designated by the employee.

The authority for the payment of this obligation is from the employment guide for unclassified and classified non-bargaining employees. Expenditures for retiree health care benefits are recognized as current expenditures in the appropriate department. The City provided coverage to three retirees in 2020 at a cost of $34,293.

3. Members As of December 31, 2020, the following were covered by the benefit terms:

Active employees electing coverage 449 Active employees waiving coverage 21 Retirees electing coverage 88

Total 558

85 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

B. Post-employment HealthCare Plan (Continued) 4. Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of December 31, 2020, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Key Methods and Assumptions Used in Valuation of Total OPEB Liability Inflation 2.25% Health care cost trend rate 6.70% for FY2020, gradually decreasing over several decades to an ultimate rate of 3.80% in FY2075 and later years. Mortality assumptions: General Employees Based on the RP-2014 mortality tables with projected mortality improvements based on scale MP-2018, and other adjustments. Police & Fire Employees Based on the RP-2014 mortality tables with projected mortality improvements based on scale MP-2018, and other adjustments.

The discount rate used to measure the total OPEB liability was 2.75% based on the Fidelity 20-year Municipal GO AA Index.

5. Total OPEB Liability The City’s total OPEB liability of $18,247,182 was measured as of December 31, 2020 and was determined by an actuarial valuation as of that date.

Changes in the total OPEB liability are as follows:

Total OPEB Liability

Balance at January 1, 2020 (1) $ 14,324,612

Changes for the year: Services cost 650,423 Interest 537,415 Differences between expected and actual experience 2,845,557 Changes in assumptions 779,886 Changes in benefit terms 88,222 Employer contributions (978,933)

Net Changes 3,922,570

(1) Balance at December 31, 2020 $ 18,247,182

86 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

B. Post-employment HealthCare Plan (Continued) 5. Total OPEB Liability (Continued) Changes in assumptions and other inputs reflect a change in the discount rate from 3.71% in 2019 to 2.75% in 2020.

(1) The City has elected to use the GASB 75 “lookback” method where assets and liabilities are measured as of the prior fiscal year-end; but applied to the current fiscal year.

6. OPEB Liability Sensitivity The following presents the City’s total OPEB liability calculated using the discount rate of 2.75% as well as the liability measured using 1% lower and 1% higher than the current discount rate.

Total OPEB Liability 1% Lower 1.75%$ 19,505,039 Current Discount Rate 2.75%$ 18,247,182 1% Higher 3.75% $ 17,090,968

The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1% higher than the current healthcare cost trend rates.

Total OPEB Liability 1% Lower 5.70%$ 16,668,299 Current Trend Rate 6.70%$ 18,247,182 1% Higher 7.70% $ 20,059,687

7. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended December 31, 2020, the City recognized OPEB expense of $1,581,773. At December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Deferred Outflows Inflows of Resources of Resources Difference between expected and actual liability $ 2,508,006 -$ Changes in acturial assumptions 992,891 1,142,058 Contributions paid subsequent to the measurement date 1,206,413 -

Total $ 4,707,310 $ 1,142,058

87 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

B. Post-employment HealthCare Plan (Continued) 7. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) The $1,206,413 reported as deferred outflows of resources related to OPEB resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ended December 31, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended December 31 Total 2021 $ 305,711 2022 305,711 2023 305,711 2024 305,711 2025 305,711 Thereafter 830,286

$ 2,358,841

C. Defined Benefit Pension Plans 1. Plan Description The City of St. Cloud participates in the following cost-sharing multiple- employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.

a. General Employees Retirement Fund (GERF) Plan Description All full-time and certain part-time employees of the City of St. Cloud are covered by the GERF. General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are also covered by Social Security.

b. Public Employees Police and Fire Fund (PEPFF) Plan Description PEPFF, 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 PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA.

88 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 2. 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.

a. General Employees Retirement Fund (GERF) Benefits GERF benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2% for each of the first ten years of service and 1.7% for all years of service. 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. Beginning in 2019, the postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the Social Security Administration, 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. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement.

b. Public Employees Police and Fire Fund (PEPFF) Benefits Benefits for the PEPFF 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 ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty 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.

89 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 2. Benefits Provided (Continued) b. Public Employees Police and Fire Fund (PEPFF) Benefits (Continued) Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement increase was 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. For 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.

3. Contributions Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature.

a. General Employees Retirement Fund (GERF) Contributions Coordinated Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2020. The City of St. Cloud was required to contribute 7.50% for Coordinated Plan members. The City of St. Cloud’s contributions to the GERF for the year ended December 31, 2020, were $1,435,886. The City of St. Cloud's contributions were equal to the required contributions as set by state statute.

b. Public Employees Police and Fire Fund (PEPFF) Contributions Police and Fire member’s contribution rates increased from 11.3% of pay to 11.8% and employer rates increased from 16.95% to 17.7% on January 1, 2020. The City's contributions to the PEPFF for the year ended December 31, 2020, were $2,799,741. The City's contributions were equal to the required contributions as set by state statute.

4. Pension Costs a. General Employees Retirement Fund (GERF) Pension Costs At December 31, 2020, the City of St. Cloud reported a liability of $16,271,670 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2020. 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 $501,637. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

90 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 4. Pension Costs (Continued) a. General Employees Retirement Fund (GERF) Pension Costs (Continued) The City of St. Cloud’s proportionate share of the net pension liability was based on the City of St. Cloud’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer contributions received from all of PERA’s participating employers. The City of St. Cloud’s proportionate share was .2714% at the end of the measurement period and .2716% for the beginning of the period.

City's proportionate share of the net pension liability$ 16,271,670 State of Minnesota's proportionate share of the net pension liability associated with the City 501,637

Total $ 16,773,307

For the year ended December 31, 2020, the City of St. Cloud recognized pension expense of $591,363 for its proportionate share of the GERF pension expense. Included in the amount, the City of St. Cloud also recognized $43,658 as pension expense (and grant revenue) for the year ended December 31, 2020, as revenue for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF.

At December 31, 2020, the City of St. Cloud reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actuarial economic experience $ 148,505 $ 61,565 Changes in acturial assumptions - 604,616 Net collective difference between projected and actual investment earnings 267,274 - Changes in proportion - 80,982 Contributions paid to PERA subsequent to the measurement date 717,943 -

Total $ 1,133,722 $ 747,163

91 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 4. Pension Costs (Continued) a. General Employees Retirement Fund (GERF) Pension Costs (Continued) The $717,943 reported as deferred outflows of resources related to pensions resulting from City of St. Cloud contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended Pension December 31 Expense Amount 2021 $ (987,395) 2022 (43,735) 2023 306,615 2024 393,131

$ (331,384)

b. Public Employees Police and Fire Fund (PEPFF) Pension Costs At December 31, 2020, the City of St. Cloud reported a liability of $18,150,770 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City of St. Cloud’s proportionate share of the net pension liability was based on the City of St. Cloud’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2019, through June 30, 2020, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2020, the City of St. Cloud’s proportionate share was 1.3865% at the end of the measurement period and 1.4262% for the beginning of the period.

The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special funding situation and $9 million in fire state aid that does not meet the definition of a special funding situation. The $4.5 million direct state aid was paid on October 1, 2019. Thereafter, by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid 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.

92 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 4. Pension Costs (Continued) b. Public Employees Police and Fire Fund (PEPFF) Pension Costs (Continued) As a result, the State of Minnesota is included as a non-employer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2020, the City recognized pension expense of $2,312,033 for its proportionate share of the Police and Fire Plan’s pension expense. Included in this amount, the City recognized $132,462 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $4.5 million to the Police and Fire Fund.

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 fire state aid. The City also recognized $124,784 for the year ended December 31, 2020 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.

At December 31, 2020, the City of St. Cloud reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actuarial economic experience $ 807,221 $ 872,560 Changes in acturial assumptions 6,157,647 11,146,223 Net collective difference between projected and actual investment earnings 595,082 - Changes in proportion 508,217 927,615 Contributions paid to PERA subsequent to the measurement date 1,399,871 -

Total $ 9,468,038 $ 12,946,398

93 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 4. Pension Costs (Continued) b. Public Employees Police and Fire Fund (PEPFF) Pension Costs (Continued) The $1,399,871 reported as deferred outflows of resources related to pensions resulting from City of St. Cloud’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended Pension December 31 Expense Amount 2021 $ (1,335,274) 2022 (5,144,703) 2023 868,181 2024 791,225 2025 (57,660)

$ (4,878,231)

5. Actuarial Assumptions The total pension liability in the June 30, 2020, actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions:

General Police and Employees Fund Fire Fund Inflation 2.25% per year 2.50% per year Active Member Payroll Growth 3.00% per year 3.25% per year Investment Rate of Return 7.50% 7.50%

Salary increases were based on a service-related table. Mortality rates for active, retirees, survivors, and disabled members for all plans were based on RP 2014 tables for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25% per year for the GERF and, 1.0% per year for the PEPFF.

Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF 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 PEPFF was completed in 2020. The recommended assumptions for that plan was adopted by the Board and will be effective with the July 1, 2021, actual valuation if approved by the Legislature.

94 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 5. Actuarial Assumptions (Continued) The following changes in actuarial assumptions occurred in 2020:

General Employees Fund 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 retirees 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.

95 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 5. Actuarial Assumptions (Continued) General Employees Fund (Continued) 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.

Police and Fire Fund Changes in Actuarial Assumptions: • The mortality projection scale was changed from MP-2018 to MP-2019.

Changes in Plan Provisions: • There have been no changes since the prior valuation.

The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages.

The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

Long-Term Expected Asset Class Target Allocation Real Rate of Return Domestic Stocks 35.50% 5.10% International Stocks 17.50% 5.30% Bonds (Fixed Income) 20.00% 0.75% Alternative Assets (Private Markets) 25.00% 5.90% Cash 2.00% 0.00%

Total 100.00%

96 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

C. Defined Benefit Pension Plans (Continued) 6. Discount Rate The discount rate used to measure the total pension liability in 2020 was 7.5%. 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 GERF and the PEPFF 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.

7. Pension Liability Sensitivity The following presents the City of St. Cloud’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 of St. Cloud’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:

General Employees Fund Police and Fire Fund 1% Lower 6.50%$ 26,077,844 6.50%$ 36,301,025 Current Discount Rate 7.50%$ 16,271,670 7.50%$ 18,150,770 1% Higher 8.50% $ 8,182,365 8.50% $ 3,134,612

8. 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.

D. Public Employees Defined Contribution Plan (Defined Contribution Plan) Seven city council members of the City of St. Cloud are covered by the Defined Contribution Plan (DCP), a multiple employer deferred compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.

97 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

IV. OTHER INFORMATION (CONTINUED)

D. 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. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% 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 of St. Cloud during fiscal year 2020 were:

Percentage of Required Rate Contribution Amount Covered Payroll for Employees For the Year Ended: Employee Employer Employee Employer and Employers December 31, 2020 $ 5,919 $ 5,919 5% 5% 5%

E. Pension Expense Total pension expense for all plans for the City is $2,909,315.

98 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

V. COMMITMENTS AND CONTINGENCIES

A. Commitments The City has the following commitments outstanding at year-end for various construction projects; they are summarized as follows:

Expended Project Through Remaining Project Authorization 12/31/2020 Commitment STC TO31 Taxiway Configuration-Final Design $ 284,980 $ 259,198 $ 25,782 STC 2020-1 N Bldg Area Water & Sewer Design 133,560 98,871 34,689 Beaver Island Trail Phase 8 Design Phase 8,845 8,707 138 St Cloud Heritage Park Skate Plaza 1,121,621 1,120,377 1,244 Tech High School Study 647,309 459,941 187,368 Renovation of Former Tech High 551,000 100,740 450,260 33rd St S from CSAH 74 to County Road 136 4,840,743 4,747,986 92,757 Pan & Pan Park Place 2nd Addition Neighborhood Improvements 2,517,916 2,507,812 10,104 33rd Street South Bituminous Trail 333,393 287,768 45,625 33rd Street South-CR 136 to Cooper Avenue Improvements 3,535,721 3,532,137 3,584 25th Avenue & Upper Pan Sanitary Sewer Rerouting Improvements 4,851,109 4,789,572 61,537 Glenn Carlson Drive Bituminous Resurfacing Improvements 242,663 237,974 4,689 Spent Lime Regional Treatment 66,800 60,454 6,346 Advanced Water Meter Replacement Project 4,402,381 1,960,967 2,441,414 Water Treatment Facility Advanced Process & Upgrades 37,575,136 4,450,221 33,124,915 SCADA Systems Needs Assessment Phase 2 29,500 3,870 25,630 Wastewater Conweyance System Improvements Lift Stations 7, 10, 11, 14 & 15 360,000 133,107 226,893 Hydroelectric Generation Facility Controls & Monitoring-Phase 3 376,778 241,518 135,260 Water Treatment Facility Advanced Treatment Process 30,000 472 29,528 Lake George Regional Stormwater Treatment 819,195 713,137 106,058 SW Lift Station Condition Assessment 8,600 5,095 3,505

$ 62,737,250 $ 25,719,924 $ 37,017,326

99 CITY OF ST. CLOUD, MINNESOTA

NOTES TO THE FINANCIAL STATEMENTS December 31, 2020

V. COMMITMENTS AND CONTINGENCIES (CONTINUED) B. Contingencies On March 13, 2020, a national emergency was declared for the COVID-19 outbreak in the United States of America. This event affects the economy and financial markets. The extent of the impact on the City may be both direct and indirect and will vary based on the duration of the outbreak and various other factors. An estimate of the financial effect on the City’s financial statements at December 31, 2020, cannot be determined at this time.

VI. TAX INCREMENT FINANCING

The City has entered into fourteen 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, 2020, the City generated $565,850 in tax increment revenue and made $395,344 in payments to developers.

VII. NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED

GASB Statement No. 87, Leases establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. This statement will be effective for the year ending December 31, 2022.

100 CITY OF ST. CLOUD, MINNESOTA

REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in Total OPEB Liability and Related Ratios

12/31/2018 12/31/2019 12/31/2020 Total OPEB Liability Service cost $ 611,285 $ 698,193 $ 650,423 Interest 589,368 527,721 537,415 Differences between expected and actual experience - - 2,845,557 Changes of assumptions 479,771 (1,506,931) 779,886 Changes in benefit terms - - 88,222 Benefit payments (1,307,396) (1,278,800) (978,933)

Net change in total OPEB liability 373,028 (1,559,817) 3,922,570

Beginning of year 15,511,401 15,884,429 14,324,612

End of Year $ 15,884,429 $ 14,324,612 $ 18,247,182

Covered payroll $ 32,662,318 $ 33,605,693 $ 33,583,296

Net OPEB liability as a percentage of covered-employee payroll 48.6% 42.6% 54.3%

Note: Schedule is intended to show ten-year trend. Additional years will be reported as they become available.

101 CITY OF ST. CLOUD, MINNESOTA

REQUIRED SUPPLEMENTARY INFORMATION Schedule of the Proportionate Share of the Net Pension Liability Last Ten Years GERF Retirement Funds

City's Proportionate Share of the Net Pension City's State's Liability and Proportionate Proportionate the State's Share of the Plan City's City's Share of Proportionate Net Pension Fiduciary For Proportion Proportionate the Net Share of the Liability Net Position as Fiscal of the Net Share of the Pension Net Pension (Asset) as a a Percentage Year Pension Net Pension Liability Liability City's Percentage of of the Total Ended Liability Liability Associated Associated Covered its Covered Pension June 30 (Asset) (Asset) with the City with the City Payroll Payroll Liability 2020 0.2714%$ 16,271,670 $ 501,637 $ 16,773,307 $ 19,340,973 84.13% 79.06% 2019 0.2716%$ 15,015,156 $ 466,646 $ 15,481,802 $ 19,185,467 78.26% 80.23% 2018 0.2733%$ 15,161,563 $ 497,388 $ 15,658,951 $ 18,438,861 82.23% 79.53% 2017 0.2749%$ 17,549,435 $ 220,700 $ 17,770,135 $ 17,715,124 99.06% 75.90% 2016 0.2784%$ 22,604,699 $ 295,188 $ 22,899,887 $ 17,053,275 132.55% 68.91% 2015 0.2738%$ 14,189,737 -$ -$ $ 16,091,341 88.18% 78.19%

Note: Schedule is intended to show ten-year trend. Additional years will be reported as they become available.

102 CITY OF ST. CLOUD, MINNESOTA

REQUIRED SUPPLEMENTARY INFORMATION Schedule of City’s Contributions Last Ten Years GERF Retirement Funds

Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered December 31 Contribution Contributions (Excess) Payroll Payroll 2020$ 1,435,886 $ 1,435,886 $ - $ 19,145,147 7.50% 2019$ 1,465,260 $ 1,465,260 $ - $ 19,536,800 7.50% 2018$ 1,412,560 $ 1,412,560 $ - $ 18,834,133 7.50% 2017$ 1,353,270 $ 1,353,270 $ - $ 18,043,589 7.50% 2016$ 1,294,495 $ 1,294,495 $ - $ 17,259,910 7.50% 2015$ 1,242,955 $ 1,242,955 $ - $ 16,572,655 7.50%

Note: Schedule is intended to show ten-year trend. Additional years will be reported as they become available.

103 CITY OF ST. CLOUD, MINNESOTA

REQUIRED SUPPLEMENTARY INFORMATION Schedule of the Proportionate Share of the Net Pension Liability Last Ten Years PEPFF Retirement Funds

City's Proportionate Share of the Net Pension City's State's Liability and Proportionate Proportionate the State's Share of the Plan City's City's Share of Proportionate Net Pension Fiduciary For Proportion Proportionate the Net Share of the Liability Net Position as Fiscal of the Net Share of the Pension Net Pension (Asset) as a a Percentage Year Pension Net Pension Liability Liability City's Percentage of of the Total Ended Liability Liability Associated Associated Covered its Covered Pension June 30 (Asset) (Asset) with the City with the City Payroll Payroll Liability 2020 1.387%$ 18,150,770 $ 430,551 $ 18,581,321 $ 15,737,430 115.34% 87.19% 2019 1.426%$ 14,990,803 N/A $ 14,990,803 $ 15,173,835 98.79% 89.26% 2018 1.387%$ 14,654,934 N/A $ 14,654,934 $ 14,523,513 100.90% 88.84% 2017 1.353%$ 18,267,110 N/A $ 18,267,110 $ 13,894,245 131.47% 85.43% 2016 1.394%$ 55,946,646 N/A $ 55,946,646 $ 13,431,242 416.54% 63.88% 2015 1.408%$ 15,998,174 N/A $ 15,998,174 $ 12,732,320 125.65% 86.60%

Note: Schedule is intended to show ten-year trend. Additional years will be reported as they become available.

104 CITY OF ST. CLOUD, MINNESOTA

REQUIRED SUPPLEMENTARY INFORMATION Schedule of City’s Contributions Last Ten Years PEPFF Retirement Funds

Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered December 31 Contribution Contributions (Excess) Payroll Payroll 2020 2,799,741$ $ 2,799,741 $ - 15,817,746$ 17.70% 2019 2,653,881$ $ 2,653,881 $ - 15,657,115$ 16.95% 2018 2,379,870$ $ 2,379,870 $ - 14,690,556$ 16.20% 2017 2,326,072$ $ 2,326,072 $ - 14,356,470$ 16.20% 2016 2,216,950$ $ 2,216,950 $ - 13,684,870$ 16.20% 2015 2,099,461$ $ 2,099,461 $ - 12,959,639$ 16.20%

Note: Schedule is intended to show ten-year trend. Additional years will be reported as they become available.

105 CITY OF ST. CLOUD, MINNESOTA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

GENERAL EMPLOYEES FUND 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.

2019 Changes Changes in Actuarial Assumptions • The morality 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.

106 CITY OF ST. CLOUD, MINNESOTA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

GENERAL EMPLOYEES FUND (CONTINUED) 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.

107 CITY OF ST. CLOUD, MINNESOTA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

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.

108 CITY OF ST. CLOUD, MINNESOTA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

POLICE AND FIRE FUND 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.

2019 Changes Changes in Actuarial Assumptions • The morality 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.

109

CITY OF ST. CLOUD, MINNESOTA

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

POLICE AND FIRE FUND – CONTINUED 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued) • 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%. • 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 increased 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%.

110 CITY OF ST. CLOUD, MINNESOTA

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special Revenue Funds are used to account for revenues derived from taxes or other earmarked revenue sources. These funds are usually required by statute, charter provision, or local ordinance to finance particular functions or activities of government. The non-major Special Revenue Funds maintained by the City of St. Cloud and their purposes are:

REVOLVING LOANS This fund was established to account for grant monies administered by the City to account for business related loans.

COMMUNITY DEVELOPMENT BLOCK GRANT (HUD) This fund was established to account for grant monies administered by the Housing and Redevelopment Authority which are routed through the City.

LIBRARY This fund was established to account for expenditures relating to the City’s cost of operating the Great River Regional Library Headquarters building located in downtown St. Cloud. The Great River Regional Library is a separate governmental entity authorized by State Statutes.

FRANCHISE FEE DEVELOPMENT This fund was established to account for the City’s share of redevelopment costs. Funding is provided by an additional 1% electric franchise fee effective 1/1/2018.

BROWNFIELDS EPA This fund was established to account for the United States Environmental Protection Agency grant funded program providing assistance to property owners conducting property and building inventories and assessments for the purpose of the Brownfields redevelopment. Available funds must be expended no later than 2020.

ECONOMIC DEVELOPMENT This fund was established for the purpose of accounting for the revenues and expenditures of activities under the direction of the Economic Development Authority (EDA). The EDA was established in September 2010 and the responsibility for economic development was transferred from the St. Cloud EDA to the City EDA effective December 31, 2010.

DEVELOPMENT This fund was established for the purpose of providing funds for short-term and long-range planning for the City. Authority for the establishment of this fund is provided by Section 8.4, Paragraph 5, of the City Charter. Twenty-five percent of all funds received from the sale of licenses and the issuance of permits is reclassified from the General Fund to the Development Fund.

PARK RESERVE This fund was set up to account for funds received from developers on new plats.

111 CITY OF ST. CLOUD, MINNESOTA

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS – CONTINUED

GARDENS The Gardens Fund is responsible for planning, developing and maintaining the City’s flower gardens within the City’s park system.

RETIRED AND SENIOR VOLUNTEER PROGRAM This fund was established to account for expenditures relating to the Retired and Senior Volunteer Program. The program involves City funds as well as other financing sources.

AIRPORT OPERATING This fund was established to account for all activities and maintenance of facilities located at the St. Cloud Regional Airport.

TIF – CENTRE SQUARE I & II To account for the operation of the Centre Square I & II tax increment financing district of the EDA and financing from property tax increments.

TIF – PARAMOUNT RAMP To account for the operation of the Paramount Ramp tax increment financing district of the EDA and financing from property tax increments.

TIF – LINCOLN TARGET To account for the operation of the Lincoln Target tax increment financing district of the EDA and financing from property tax increments.

TIF – FINGERHUT II To account for the operation of the Fingerhut II tax increment financing district of the EDA and financing from property tax increments.

TIF – WEBWAY II To account for the operation of the Webway II tax increment financing district of the EDA and financing from property tax increments.

TIF – ETC ENTERPRISES To account for the operation of the ETC Enterprises tax increment financing district of the EDA and financing from property tax increments.

TIF - EASTGATE To account for the operation of the Eastgate tax increment financing district of the EDA and financing from property tax increments.

112 CITY OF ST. CLOUD, MINNESOTA

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS – CONTINUED

TIF – GOETTENS RENTAL HOUSING To account for the operation of the Goettens Rental Housing tax increment financing district of the EDA and financing from property tax increments.

TIF – GOETTENS SINGLE FAMILY HOUSING To account for the operation of the Goettens Single Family Housing tax increment financing district of the EDA and financing from property tax increments.

TIF – WESTWOOD VILLAGE To account for the operation of the Westwood Village tax increment financing district of the EDA and financing from property tax increments.

TIF – EICH HOLDINGS LLC PROJECT To account for the operation of the Eich Holdings LLC Project tax increment financing district of the EDA and financing from property tax increments.

TIF – WESTWOOD PHASE II To account for the operation of the Westwood Phase II tax increment financing district of the EDA and financing from property tax increments.

TIF – WESTWIND APARTMENTS To account for the operation of the Westwind Apartments tax increment financing district of the EDA and financing from property tax increments.

TIF - MAHOWALD To account for the operation of the Mahowald tax increment financing district of the EDA and financing from property tax increments.

TIF – NABC HOLDINGS/TRI COUNTY ABSTRACT To account for the operation of the NABC Holdings/Tri County Abstract tax increment financing district of the EDA and financing from property tax increments.

TIF – MODEL COLLEGE To account for the operation of the Model College tax increment financing district of the EDA and financing from property tax increments.

TIF – MICROBIOLOGICS To account for the operation of the Microbiologics tax increment financing district of the EDA and financing from property tax increments.

113 CITY OF ST. CLOUD, MINNESOTA

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS – CONTINUED

TIF – GRANITE BOWL To account for the operation of the Granite Bowl tax increment financing district of the EDA and financing from property tax increments.

TIF – PARK INDUSTRIES II To account for the operation of the Park Industries II tax increment financing district of the EDA and financing from property tax increments.

MARCO TAX ABATEMENT To account for the operation of the Marco Tax Abatement tax increment financing district of the EDA and financing from property tax increments.

HOTEL-MOTEL TAX This fund was established by City of St. Cloud Ordinance #984 to account for the collection and disbursement of a 3 percent hotel-motel tax. City of St. Cloud Ordinance #1263 dated August 18, 1986, raised the tax rate to 5 percent effective January 1, 1987. The additional 2 percent tax will go toward paying operating expenses for the Civic Center. Up to ninety percent of the 3 percent tax is turned over to the Convention and Visitors Bureau for promotional purposes.

FIRE HAZARDOUS MATERIAL This fund was established to account for contributions received from the State of Minnesota for the purpose of providing training and equipment relating to the hazardous material operation.

METROPOLITAN AREA NETWORK CONSORTIUM This fund was established by the City of St. Cloud and the St. Cloud School District Number 742 for the purpose of operating fiber optic communications network providing voice, data and video connectivity to City and School District operated facilities.

CABLE TV ACCESS OPERATING This fund was established to account for amounts collected from the cable TV franchise agreement to support the cost of providing the local government access channel. The City collects 75 cents per subscriber per month according to the cable TV franchise agreement.

114 CITY OF ST. CLOUD, MINNESOTA

NON-MAJOR GOVERNMENTAL FUNDS

DEBT SERVICE FUNDS

Debt Service Funds are established to account for the payment of principal and interest on long-term, general obligation debt. The debt issued for and paid by revenue generated from the City’s business- type activities is accounted for in the Proprietary Funds. The non-major Debt Service Funds maintained by the City of St. Cloud and their purposes are:

TAX INCREMENT BONDS This fund was established to finance the redevelopment costs of projects approved by the City Council and administered by the St. Cloud Housing and Redevelopment Authority. The debt payments on these bonds issued are secured by the tax increment revenue generated by the districts benefitting from the redevelopment.

STREET RECONSTRUCTION BONDS This fund was established to account for the payment of principal and interest for the Street Reconstruction Bonds.

LIBRARY BOND This fund was established to account for the payment of principal and interest of the City Library.

AQUATICS CENTER BOND This fund was established to account for the payment of principal and interest for the construction of the Aquatics Center.

BEAVER ISLAND TRAIL III BOND This fund was established to account for the payment of principal and interest for the construction of the Beaver Island Trail Phase III.

ENTERPRISE RESOURCE PLANNING (ERP) PROJECT BOND This fund was established to account for the City’s Enterprise Resource Planning Software Project, including the Legal case management system and the Laserfiche expansion.

FIRE TRUCKS/RADIO REPLACEMENT BOND This fund was established to account for the payment of principal and interest for the purchase of three fire trucks and radio equipment.

PUBLIC SAFETY FACILITIES REFUNDING BOND This fund was established to refund the $37,010,000 G.O. Public Safety Facilities Bonds, Series 2008A.

115 CITY OF ST. CLOUD, MINNESOTA

NON-MAJOR GOVERNMENTAL FUNDS

CAPITAL PROJECTS FUNDS

Capital Projects Funds are established to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by Proprietary Funds. The non-major Capital Projects Funds maintained by the City of St. Cloud and their purposes are:

PERMANENT IMPROVEMENT This fund is used primarily to finance the City’s share of improvement projects, such as miscellaneous street surfacing and sidewalk projects and other miscellaneous improvements, such as traffic signals.

MUNICIPAL STATE-AID ROAD This fund was established to account for revenues received for various State-Aid road construction projects. The actual construction costs are accounted for in a separate capital project fund.

AIRPORT CONSTRUCTION This fund was established to account for expenditures relating to airport improvements, including runways and other improvements.

ENTERPRISE RESOURCE PLANNING (ERP) PROJECT This fund was established to account for the City’s Enterprise Resource Planning Software Project, including the Legal case management system and the Laserfiche expansion.

I-94 BUSINESS PARK This fund was established to account for the acquisition and construction of the Business Park.

AIRPORT BUSINESS PARK This fund was established to account for the acquisition and construction of the Airport Business Park.

PARK IMPROVEMENTS AND BEAUTIFICATION This fund was established to account for donations and other revenue which will be used to make improvements to the City’s parks.

PARK CAPITAL EXPANSION This fund was established to account for the proceeds of the Heritage Park land sale.

TECH HIGH SCHOOL/CITY HALL RENOVATION This fund was established to account for renovation of the former Tech High School into a municipal campus, including City Hall and other ancillary uses, upon ISD 742’s vacation of the site for academic purposes.

LOCAL SALES TAX PROJECTS This fund was established to account for the one-half percent local option sales tax collections that will be used to fund transportation, park and community facility projects.

116 CITY OF ST. CLOUD, MINNESOTA

COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS December 31, 2020

Special Revenue

Community Franchise Revolving Development Fee Loans Block Grant Library Development

Assets: Cash and investments 227,742$ -$ 1,980,114$ 713,390$ Cash deposited with fiscal agent - - - - Accounts receivable - - 67,296 178,629 Delinquent taxes receivable - - 3,653 - Due from other governmental units - 263,109 3,072 - Due from other funds - - - - Prepaid items - - - - Loan receivables 70,157 - - - Advance to other funds - - - - Land held for resale - - - -

Total Assets 297,899$ 263,109$ 2,054,135$ 892,019$

Liabilities: Accounts payable -$ 26,148$ 104,659$ -$ Salaries payable - 2,346 - - Due to other governmental units - 158 - - Due to other funds - 234,457 - - Unearned revenue - - - - Advance from other funds - - - 1,726,750

Total Liabilities - 263,109 104,659 1,726,750

Deferred Inflows of Resources: Unavailable revenue - property taxes - - 3,653 -

Fund Balances: Nonspendable - - - - Restricted 297,899 - 1,694,075 - Committed - - 251,748 - Assigned - - - - Unassigned - - - (834,731)

Total Fund Balance 297,899 - 1,945,823 (834,731)

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) 297,899$ 263,109$ 2,054,135$ 892,019$

117 Statement E-1

Special Revenue Retired and Senior Brownfields Economic Park Volunteer Airport EPA Development Development Reserve Gardens Program Operating

-$ -$ $ 769,073 $ 379,428 569,963$ -$ $ 70,702 -$ ------1,746 5,000 49,010 - - 5,461 - - 4,324 - 7,545 21,414 21,414 80,799 - - 3,654 47,016 981,017 - - 13,844 234,457 110,924 - - - - - 1,800 9,922 - - - 11,414 ------83,308 ------106,700 - - - - -

21,414$ 21,414$ $ 1,060,985 $ 623,807 680,887$ 9,724$ $ 122,718 1,048,986$

7,570$ 7,570$ $ 60,615 $ 3,897 -$ 754$ $ 8,201 29,575$ - - 3,252 4,202 - 2,407 2,542 6,563 - - 201 306 - 153 162 9,002 13,844 13,844 - - - 110,924 - 250,325 - - - 225,045 - 1,425 ------

21,414 21,414 64,068 233,450 - 115,663 10,905 295,465

- - 5,461 - - 4,324 - 7,545

- - 1,800 9,922 - - - 11,414 - - 989,656 ------380,435 680,887 - 111,813 734,562 ------(110,263) - -

- - 991,456 390,357 680,887 (110,263) 111,813 745,976

21,414$ 21,414$ $ 1,060,985 $ 623,807 680,887$ 9,724$ $ 122,718 1,048,986$

(Continued)

118 CITY OF ST. CLOUD, MINNESOTA

COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS December 31, 2020

Special Revenue

TIF TIF TIF TIF Centre Square Paramount Fingerhut Webway I & II Ramp II II

Assets: Cash and investments $ 81,247 100,306$ 95,007$ 1,047,834$ Cash deposited with fiscal agent - - - - Accounts receivable - - - - Delinquent taxes receivable - - - - Due from other governmental units - - - - Due from other funds - - - - Prepaid items - - - - Loan receivables - - - - Advance to other funds - - - - Land held for resale - - - -

Total Assets $ 81,247 100,306$ 95,007$ 1,047,834$

Liabilities: Accounts payable -$ -$ -$ -$ Salaries payable - - - - Due to other governmental units - - - - Due to other funds - - - - Unearned revenue - - - - Advance from other funds - - - -

Total Liabilities - - - -

Deferred Inflows of Resources: Unavailable revenue - property taxes - - - -

Fund Balances: Nonspendable - - - - Restricted 81,247 100,306 95,007 1,047,834 Committed - - - - Assigned - - - - Unassigned - - - -

Total Fund Balance 81,247 100,306 95,007 1,047,834

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) $ 81,247 100,306$ 95,007$ 1,047,834$

119 Statement E-1 (Continued)

Special Revenue TIF TIF TIF TIF TIF Goettens Goettens TIF Eich Westwood ETC TIF Rental Single Family Westwood Holdings Phase Enterprises Eastgate Housing Housing Village LLC Project II

$ 91,091 $ 3,465 14,418$ $ 22,608 $ 654,049 $ 6,261 $ 8 ------933 354 - - - 1,854 ------

$ 91,445 $ 3,465 14,418$ $ 22,608 $ 655,903 $ 6,261 $ 941

$ 377 -$ -$ -$ -$ -$ -$ ------

377 ------

------933

------91,068 3,465 14,418 22,608 655,903 6,261 8 ------

91,068 3,465 14,418 22,608 655,903 6,261 8

$ 91,445 $ 3,465 14,418$ $ 22,608 $ 655,903 $ 6,261 $ 941

(Continued)

120 CITY OF ST. CLOUD, MINNESOTA

COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS December 31, 2020

Special Revenue TIF TIF NABC TIF Westwind TIF Holdings/Tri Model Apartments Mahowald County Abstract College

Assets: Cash and investments 21,442$ 533$ $ 3,973 4,749$ Cash deposited with fiscal agent - - - - Accounts receivable - - - - Delinquent taxes receivable - - - - Due from other governmental units - 4,612 - - Due from other funds - - - - Prepaid items - - - - Loan receivables - - - - Advance to other funds - - - - Land held for resale - - - -

Total Assets 21,442$ 5,145$ $ 3,973 4,749$

Liabilities: Accounts payable -$ 177$ -$ -$ Salaries payable - - - - Due to other governmental units - - - - Due to other funds - - - - Unearned revenue - - - - Advance from other funds - 698 22,575 39,088

Total Liabilities - 875 22,575 39,088

Deferred Inflows of Resources: Unavailable revenue - property taxes - - - -

Fund Balances: Nonspendable - - - - Restricted 21,442 4,270 - - Committed - - - - Assigned - - - - Unassigned - - (18,602) (34,339)

Total Fund Balance 21,442 4,270 (18,602) (34,339)

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) 21,442$ 5,145$ $ 3,973 4,749$

121 Statement E-1 (Continued)

Special Revenue Metropolitan TIF Marco Hotel- Fire Area TIF TIF Park Tax Motel Hazardous Network Microbiologics Granite Bowl Industries II Abatement Tax Material Consortium

$ 24,314 $ 29,854 $ 32,801 18,765$ 81,143$ -$ 96,946$ ------17,502 - 2,894 - - - - 498 ------11,528 - 18,476 ------

$ 24,314 $ 29,854 $ 32,801 30,791$ 98,645$ 18,476$ 99,840$

-$ -$ -$ -$ -$ 37,468$ 340$ 5,568$ ------13,756 ------20,947 ------

20,947 - - - 37,468 14,096 5,568

- - - - 498 - - -

------3,367 29,854 32,801 30,293 ------61,177 4,380 94,272 ------

3,367 29,854 32,801 30,293 61,177 4,380 94,272

$ 24,314 $ 29,854 $ 32,801 30,791$ 98,645$ 18,476$ 99,840$

(Continued)

122 CITY OF ST. CLOUD, MINNESOTA

COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS December 31, 2020

Special Revenue Debt Service

Cable TV Street Aquatics Access Reconstruction Center Operating Total Bonds Bond

Assets: Cash and investments 915,365$ $ 8,056,591 $ 39,988 166,956$ Cash deposited with fiscal agent - - - - Accounts receivable 53,853 375,930 - - Delinquent taxes receivable - 22,414 9,500 - Due from other governmental units - 1,436,905 10,185 - Due from other funds - 359,225 - - Prepaid items - 23,136 - - Loan receivables - 70,157 - - Advance to other funds - 83,308 - - Land held for resale - 106,700 - -

Total Assets 969,218$ $ 10,534,366 $ 59,673 166,956$

Liabilities: Accounts payable 553$ $ 285,902 -$ -$ Salaries payable 749 22,061 - - Due to other governmental units 42 10,024 - - Due to other funds - 623,306 - - Unearned revenue - 226,470 - - Advance from other funds - 1,810,058 - -

Total Liabilities 1,344 2,977,821 - -

Deferred Inflows of Resources: Unavailable revenue - property taxes - 22,414 9,500 -

Fund Balances: Nonspendable - 23,136 - - Restricted - 5,221,782 50,173 166,956 Committed 967,874 3,287,148 - - Assigned - - - - Unassigned - (997,935) - -

Total Fund Balance 967,874 7,534,131 50,173 166,956

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) 969,218$ $ 10,534,366 $ 59,673 166,956$

123 Statement E-1 (Continued)

Debt Service Capital Projects Enterprise Fire Trucks/ Public Safety Resource Radio Facilities Municipal Planning (ERP) Replacement Refunding Permanent State-Aid Project Bond Bond Bond Total Improvement Road

-$ -$ $ 179,526 $ 2,511,915 $ 2,898,385 $ 1,759,473 $ 2,857,360 ------4,338 7,279 29,100 50,217 17 - 3,682 6,449 24,907 45,223 27 - - - - 4,059 4,059 ------

$ 8,020 $ 193,254 $ 2,569,981 $ 2,997,884 $ 1,759,517 $ 2,857,360

-$ -$ -$ -$ -$ $ 30,007 -$ ------4,059 - - 4,059 ------

4,059 - - 4,059 30,007 -

4,338 7,279 29,100 50,217 17 -

------185,975 2,540,881 2,943,985 ------1,729,493 2,857,360 (377) - - (377) - -

(377) 185,975 2,540,881 2,943,608 1,729,493 2,857,360

$ 8,020 $ 193,254 $ 2,569,981 $ 2,997,884 $ 1,759,517 $ 2,857,360

(Continued)

124 CITY OF ST. CLOUD, MINNESOTA

COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS December 31, 2020

Capital Projects Enterprise Resource I-94 Airport Airport Planning Business Business Construction (ERP) Project Park Park

Assets: Cash and investments 3,895,244$ 336$ 16,427$ 99,995$ Cash deposited with fiscal agent - 507,877 - - Accounts receivable 10,848 - - - Delinquent taxes receivable - - - - Due from other governmental units 283,774 - - - Due from other funds 250,325 - - - Prepaid items - - - - Loan receivables - - - - Advance to other funds - - - - Land held for resale - - 889,170 4,316,457

Total Assets 4,440,191$ 508,213$ 905,597$ 4,416,452$

Liabilities: Accounts payable 39,233$ 156,450$ -$ -$ Salaries payable - - - - Due to other governmental units - - - - Due to other funds - - - - Unearned revenue - - - - Advance from other funds - - - 650,000

Total Liabilities 39,233 156,450 - 650,000

Deferred Inflows of Resources Unavailable revenue - property taxes - - - -

Fund Balances: Nonspendable - - - - Restricted - 507,877 905,597 3,766,452 Committed - - - - Assigned 4,400,958 - - - Unassigned - (156,114) - -

Total Fund Balance 4,400,958 351,763 905,597 3,766,452

Total Liabilities, Deferred Inflows of Resources and Fund Balances (Deficits) 4,440,191$ 508,213$ 905,597$ 4,416,452$

125 Statement E-1 (Continued)

Capital Projects Park Tech High Total Improvements Park School/ Local Non-Major and Capital City Hall Sales Tax Governmental Beautification Expansion Renovation Projects Total Funds

$ 142,808 $ 155,664 -$ $ 4,422,516 $ 13,349,823 $ 24,304,799 - - - - - 507,877 507,877 - - 1,054 - - 11,902 387,832 - - - - - 17 72,648 46,265 - - 1,211,130 1,541,196 3,023,324 - - - - - 250,325 613,609 ------23,136 ------70,157 ------83,308 - - - - - 5,205,627 5,312,327

$ 189,073 $ 156,718 -$ $ 5,633,646 $ 20,866,767 $ 34,399,017

-$ -$ $ 22,724 -$ -$ $ 248,414 $ 534,316 ------22,061 ------10,024 - - - 582,402 - 582,402 1,209,767 ------226,470 - - - - - 650,000 2,460,058

- - 22,724 582,402 - 1,480,816 4,462,696

- - - - - 17 72,648

------23,136 - - - - - 5,179,926 13,345,693 ------3,287,148 189,073 133,994 - 5,633,646 14,944,524 14,944,524 - - - (582,402) - (738,516) (1,736,828)

189,073 133,994 (582,402) 5,633,646 19,385,934 29,863,673

$ 189,073 $ 156,718 -$ $ 5,633,646 $ 20,866,767 $ 34,399,017

126 CITY OF ST. CLOUD, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Special Revenue

Community Franchise Revolving Development Fee Loans Block Grant Library Development

Revenues: Taxes -$ -$ $ 1,993,272 $ 799,881 Licenses and permits - - - - Intergovernmental - 1,041,524 4,683 - Charges for services - - 86,675 - Investment income (loss) 1,091 - 22,642 15,128 Miscellaneous - - - -

Total Revenues 1,091 1,041,524 2,107,272 815,009

Expenditures: Current General government - - - - Public safety - - - - Public works - - - - Culture and recreation - - 402,950 - Economic development 119 1,021,524 - 71,721 Capital outlay General government - - - - Public works - - - - Culture and recreation - 20,000 5,418 - Debt service Principal - - - - Interest and fiscal charges - - - -

Total Expenditures 119 1,041,524 408,368 71,721

Excess (Deficiency) of Revenues Over (Under) Expenditures 972 - 1,698,904 743,288

Other Financing Sources (Uses): Transfers in - - - - Transfers out - - (1,697,075) - Proceeds from sale of capital assets - - - -

Total Other Financing Sources (Uses) - - (1,697,075) -

Net Change in Fund Balances 972 - 1,829 743,288

Fund Balance - January 1 296,927 - 1,943,994 (1,578,019)

Fund Balance - December 31 $ 297,899 -$ $ 1,945,823 $ (834,731)

127 Statement E-2

Special Revenue Retired and Senior Brownfields Economic Park Volunteer Airport EPA Development Development Reserve Gardens Program Operating

-$ -$ $ 460,190 -$ -$ 372,376$ -$ $ 618,398 - - - 627,322 - - - - 92,075 92,075 1,080,346 4,275 - 1,846 321,925 978,997 - - 60,000 - - 13,096 - 290,958 - - 14,964 9,371 10,651 (1,473) 423 (2,103) - - - - 140,184 152,320 29,375 286

92,075 92,075 1,615,500 640,968 150,835 538,165 351,723 1,886,536

- - - 511,666 ------1,045,728 - - - - - 528,955 337,670 - 92,075 92,075 1,618,244 - - - - -

------11,696 - - - - - 18,000 - -

------

92,075 92,075 1,618,244 511,666 - 546,955 337,670 1,057,424

- - (2,744) 129,302 150,835 (8,790) 14,053 829,112

------100,000 ------

------100,000 -

- - (2,744) 129,302 150,835 (8,790) 114,053 829,112

- - 994,200 261,055 530,052 (101,473) (2,240) (83,136)

-$ -$ $ 991,456 $ 390,357 680,887$ $ (110,263) 111,813$ $ 745,976

(Continued)

128 CITY OF ST. CLOUD, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Special Revenue

TIF TIF TIF TIF Centre Square Paramount Lincoln Fingerhut I & II Ramp Target II

Revenues: Taxes -$ -$ -$ 206,027$ Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Investment income (loss) 1,566 1,887 - 122 Miscellaneous - - - -

Total Revenues 1,566 1,887 - 206,149

Expenditures: Current General government - - - - Public safety - - - - Public works - - - - Culture and recreation - - - - Economic development - - 34,400 204,885 Capital outlay General government - - - - Public works - - - - Culture and recreation - - - - Debt service Principal - - - - Interest and fiscal charges - - - -

Total Expenditures - - 34,400 204,885

Excess (Deficiency) of Revenues Over (Under) Expenditures 1,566 1,887 (34,400) 1,264

Other Financing Sources (Uses): Transfers in - - - - Transfers out - - - - Proceeds from sale of capital assets - - - -

Total Other Financing Sources (Uses) - - - -

Net Change in Fund Balances 1,566 1,887 (34,400) 1,264

Fund Balance - January 1 79,681 98,419 34,400 93,743

Fund Balance - December 31 $ 81,247 $ 100,306 -$ 95,007$

129 Statement E-2 (Continued)

Special Revenue TIF TIF TIF TIF TIF Goettens Goettens TIF Eich Webway Etc TIF Rental Single Family Westwood Holdings II Enterprises Eastgate Housing Housing Village LLC Project

132,166$ 132,166$ 30,713$ -$ -$ -$ 241,546$ -$ ------17,890 17,890 1,432 30 287 431 9,541 133 ------

150,056 150,056 32,145 30 287 431 251,087 133

------26,441 - - - - -

------

------

- - 26,441 - - - - -

150,056 150,056 5,704 30 287 431 251,087 133

------(133,125) ------

------(133,125) -

150,056 150,056 5,704 30 287 431 117,962 133

897,778 897,778 85,364 3,435 14,131 22,177 537,941 6,128

1,047,834$ 1,047,834$ 91,068$ 3,465$ $ 14,418 $ 22,608 655,903$ $ 6,261

(Continued)

130 CITY OF ST. CLOUD, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Special Revenue TIF TIF Westwood TIF NABC Phase Westwind TIF Holdings/Tri II Apartments Mahowald County Abstract

Revenues: Taxes $ 44,614 $ 27,093 11,192$ $ 8,503 Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Investment income (loss) - 151 6 6 Miscellaneous - - - -

Total Revenues 44,614 27,244 11,198 8,509

Expenditures: Current General government - - - - Public safety - - - - Public works - - - - Culture and recreation - - - - Economic development - 24,160 10,492 8,603 Capital outlay General government - - - - Public works - - - - Culture and recreation - - - - Debt service Principal - - - - Interest and fiscal charges - - - -

Total Expenditures - 24,160 10,492 8,603

Excess (Deficiency) of Revenues Over (Under) Expenditures 44,614 3,084 706 (94)

Other Financing Sources (Uses): Transfers in 5,900 - - - Transfers out (50,600) - - - Proceeds from sale of capital assets - - - -

Total Other Financing Sources (Uses) (44,700) - - -

Net Change in Fund Balances (86) 3,084 706 (94)

Fund Balance - January 1 94 18,358 3,564 (18,508)

Fund Balance - December 31 $ 8 $ 21,442 4,270$ $ (18,602)

131 Statement E-2 (Continued)

Special Revenue

TIF TIF Marco Hotel- Model TIF TIF Park Tax Motel College Microbiologics Granite Bowl Industries II Abatement Tax

$ 9,922 $ 53,844 $ 32,889 $ 53,501 $ 40,763 $ 404,686 ------22,273 ------13 117 279 140 113 1,856 ------3,925

9,935 53,961 33,168 53,641 63,149 410,467

------393,753 ------10,450 49,604 29,666 41,974 63,569 -

------

------

10,450 49,604 29,666 41,974 63,569 393,753

(515) 4,357 3,502 11,667 (420) 16,714

------

------

(515) 4,357 3,502 11,667 (420) 16,714

(33,824) (990) 26,352 21,134 30,713 44,463

$ (34,339) $ 3,367 $ 29,854 $ 32,801 $ 30,293 $ 61,177

(Continued)

132 CITY OF ST. CLOUD, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Special Revenue

Fire Metropolitan Cable TV Hazardous Area Network Access Material Consortium Operating Total

Revenues: Taxes -$ -$ 205,041$ $ 5,746,617 Licenses and permits - - - 627,322 Intergovernmental 53,972 269,158 1,231 3,872,305 Charges for services - 425 - 451,154 Investment income (loss) 28 690 16,582 123,994 Miscellaneous - 37,775 - 363,865

Total Revenues 54,000 308,048 222,854 11,185,257

Expenditures: Current General government - 346,707 123,816 1,375,942 Public safety 49,316 - - 49,316 Public works - - - 1,045,728 Culture and recreation - - - 1,269,575 Economic development - - - 3,307,927 Capital outlay General government - - - - Public works - - - 11,696 Culture and recreation - - - 43,418 Debt service Principal - - - - Interest and fiscal charges - - - -

Total Expenditures 49,316 346,707 123,816 7,103,602

Excess (Deficiency) of Revenues Over (Under) Expenditures 4,684 (38,659) 99,038 4,081,655

Other Financing Sources (Uses): Transfers in - 31,700 - 137,600 Transfers out - - - (1,880,800) Proceeds from sale of capital assets - - - -

Total Other Financing Sources (Uses) - 31,700 - (1,743,200)

Net Change in Fund Balances 4,684 (6,959) 99,038 2,338,455

Fund Balance - January 1 (304) 101,231 868,836 5,195,676

Fund Balance - December 31 4,380$ $ 94,272 967,874$ $ 7,534,131

133 Statement E-2 (Continued)

Debt Service Beaver Enterprise Fire Trucks/ Tax Street Aquatics Island Resource Radio Increment Reconstruction Library Center Trail III Planning (ERP) Replacement Bonds Bonds Bond Bond Bond Project Bond Bond

-$ -$ $ 1,036,866 -$ 200,000$ -$ 362,756$ $ 650,183 ------2,875 ------

- - 1,036,866 - 202,875 - 362,756 650,183

------

------

140,000 535,000 1,425,000 115,000 190,000 295,000 530,000 37,825 446,667 272,075 81,768 65,850 68,589 122,750

177,825 981,667 1,697,075 196,768 255,850 363,589 652,750

(177,825) 55,199 (1,697,075) 6,107 (255,850) (833) (2,567)

177,825 - 1,697,075 - 255,848 ------

177,825 - 1,697,075 - 255,848 - -

- - 55,199 - 6,107 (2) (833) (2,567)

- - (5,026) - 160,849 2 456 188,542

-$ -$ $ 50,173 -$ 166,956$ -$ $ (377) $ 185,975

(Continued)

134 CITY OF ST. CLOUD, MINNESOTA

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Debt Service Capital Projects Public Safety Facilities Municipal Refunding Permanent State-Aid Bond Total Improvement Road

Revenues: Taxes $ 2,238,595 4,488,400 $ 120 -$ Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Investment income (loss) 27,133 30,008 27,651 60,393 Miscellaneous - - 2,000 -

Total Revenues 2,265,728 4,518,408 29,771 60,393

Expenditures: Current General government - - - - Public safety - - - - Public works - - 3,358 - Culture and recreation - - - - Economic development - - - - Capital outlay General government - - - - Public works - - - 260,965 Culture and recreation - - - - Debt service Principal 1,650,000 4,880,000 - - Interest and fiscal charges 751,838 1,847,362 - -

Total Expenditures 2,401,838 6,727,362 3,358 260,965

Excess (Deficiency) of Revenues Over (Under) Expenditures (136,110) (2,208,954) 26,413 (200,572)

Other Financing Sources (Uses): Transfers in - 2,130,748 61,653 - Transfers out - - - - Proceeds from sale of capital assets - - 10,753 -

Total Other Financing Sources (Uses) - 2,130,748 72,406 -

Net Change in Fund Balances (136,110) (78,206) 98,819 (200,572)

Fund Balance - January 1 2,676,991 3,021,814 1,630,674 3,057,932

Fund Balance - December 31 $ 2,540,881 $ 2,943,608 $ 1,729,493 $ 2,857,360

135 Statement E-2 (Continued)

Capital Projects Enterprise Park Tech High Resource I-94 Airport Improvements Park School/ Airport Planning (ERP) Business Business and Capital City Hall Construction Project Park Park Beautification Expansion Renovation

200,039$ 200,039$ -$ -$ -$ -$ -$ -$ ------276,333 276,333 - - - 46,265 - - 105,684 105,684 - - - 5,007 - - 77,298 77,298 1,530 - 1,703 4,210 6,366 - - - - - 20,691 8,077 - -

659,354 659,354 1,530 - 22,394 63,559 6,366 -

- - 63,416 ------9,340 9,340 ------52,926 255 - - - - - 2,496 - - -

- - 153,133 - - - - 466,622 486,369 486,369 ------75,698 385,041 -

------

495,709 495,709 216,549 - 2,496 128,624 385,296 466,622

163,645 163,645 (215,019) - 19,898 (65,065) (378,930) (466,622)

------

------

163,645 163,645 (215,019) - 19,898 (65,065) (378,930) (466,622)

4,237,313 4,237,313 566,782 905,597 3,746,554 254,138 512,924 (115,780)

4,400,958$ 4,400,958$ $ 351,763 905,597$ 3,766,452$ $ 189,073 133,994$ $ (582,402)

(Continued)

136 CITY OF ST. CLOUD, MINNESOTA Statement E-2 (Continued) COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NON-MAJOR GOVERNMENTAL FUNDS For the Year Ended December 31, 2020

Capital Projects Total Local Non-Major Sales Tax Governmental Projects Total Funds

Revenues: Taxes $ 4,401,169 $ 4,601,328 $ 14,836,345 Licenses and permits - - 627,322 Intergovernmental - 322,598 4,194,903 Charges for services - 110,691 561,845 Investment income (loss) 106,787 285,938 439,940 Miscellaneous - 30,768 394,633

Total Revenues 4,507,956 5,351,323 21,054,988

Expenditures: Current General government - 63,416 1,439,358 Public safety - - 49,316 Public works - 12,698 1,058,426 Culture and recreation 19,534 72,715 1,342,290 Economic development - 2,496 3,310,423 Capital outlay General government - 619,755 619,755 Public works - 747,334 759,030 Culture and recreation 29,507 490,246 533,664 Debt service Principal - - 4,880,000 Interest and fiscal charges - - 1,847,362

Total Expenditures 49,041 2,008,660 15,839,624

Excess (Deficiency) of Revenues Over (Under) Expenditures 4,458,915 3,342,663 5,215,364

Other Financing Sources (Uses): Transfers in - 61,653 2,330,001 Transfers out (3,755,848) (3,755,848) (5,636,648) Proceeds from sale of capital assets - 10,753 10,753

Total Other Financing Sources (Uses) (3,755,848) (3,683,442) (3,295,894)

Net Change in Fund Balances 703,067 (340,779) 1,919,470

Fund Balance - January 1 4,930,579 19,726,713 27,944,203

Fund Balance - December 31 $ 5,633,646 $ 19,385,934 $ 29,863,673

137 CITY OF ST. CLOUD, MINNESOTA Statement E-3

GENERAL FUND SCHEDULE OF REVENUES, COMPARED TO BUDGET For the Year Ended December 31, 2020

Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative)

Taxes $ 24,049,100 $ 24,049,100 $ 23,580,074 $ (469,026)

Licenses and Permits 2,328,100 2,328,100 1,987,624 (340,476)

Intergovernmental: Federal grants Personnel and administrative grants 200,000 768,200 5,219,469 4,451,269 Capital grants 20,000 20,000 - (20,000) State grants Local governmental aid 13,358,700 13,358,700 13,393,269 34,569 Other 2,641,100 2,641,100 3,250,757 609,657 Other local governmental units 590,600 590,600 519,125 (71,475) Payment from other governmental units in lieu of taxes 42,000 42,000 38,908 (3,092)

Total Intergovernmental 16,852,400 17,420,600 22,421,528 5,000,928

Charges for Services: General government 556,400 556,400 535,907 (20,493) Public safety 324,100 324,100 183,059 (141,041) Highways and streets 2,242,300 2,242,300 1,537,637 (704,663) Parks 469,700 469,700 161,423 (308,277) Rents 8,000 8,000 10,043 2,043

Total Charges for Services 3,600,500 3,600,500 2,428,069 (1,172,431)

Special Assessments 90,000 90,000 102,174 12,174

Fines 893,500 893,500 507,518 (385,982)

Investment Income (Loss) 210,700 210,700 267,648 56,948

Miscellaneous: Other 120,500 120,500 97,095 (23,405)

Total Revenues $ 48,144,800 $ 48,713,000 $ 51,391,730 $ 2,678,730

138 CITY OF ST. CLOUD, MINNESOTA Statement E-4

GENERAL FUND SCHEDULE OF EXPENDITURES, COMPARED TO BUDGET For the Year Ended December 31, 2020

Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative)

General Government Elections Personal services -$ -$ $ 8,309 $ (8,309) Supplies 6,000 6,000 8,739 (2,739) Services and charges 224,800 224,800 212,491 12,309

Total elections 230,800 230,800 229,539 1,261

Council Personal services 64,900 64,900 64,397 503 Supplies 500 500 - 500 Services and charges 138,000 138,000 116,479 21,521

Total council 203,400 203,400 180,876 22,524

Mayor Personal services 547,500 547,500 555,371 (7,871) Supplies 6,800 12,800 15,137 (2,337) Services and charges 77,900 77,900 64,208 13,692

Total mayor 632,200 638,200 634,716 3,484

Legal Personal services 1,000,200 1,000,200 1,015,133 (14,933) Supplies 8,000 8,000 8,543 (543) Services and charges 87,300 87,300 63,363 23,937

Total legal 1,095,500 1,095,500 1,087,039 8,461

Human resources Personal services 172,900 172,900 169,975 2,925 Supplies 3,700 3,700 1,638 2,062 Services and charges 65,300 65,300 46,238 19,062

Total human resources 241,900 241,900 217,851 24,049

Planning and zoning Personal services 72,500 72,500 71,400 1,100 Supplies 6,000 6,000 4,431 1,569 Services and charges 35,000 35,000 57,593 (22,593)

Total planning and zoning 113,500 113,500 133,424 (19,924)

(Continued) 139 CITY OF ST. CLOUD, MINNESOTA Statement E-4 (Continued) GENERAL FUND SCHEDULE OF EXPENDITURES, COMPARED TO BUDGET For the Year Ended December 31, 2020

Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative)

General Government (Continued) Finance Personal services $ 1,113,500 $ 1,113,500 $ 1,080,586 $ 32,914 Supplies 26,200 26,200 35,919 (9,719) Services and charges 124,400 124,400 94,777 29,623

Total finance 1,264,100 1,264,100 1,211,282 52,818

Information technology Personal services 994,600 994,600 965,808 28,792 Supplies 202,800 202,800 279,165 (76,365) Services and charges 342,300 342,300 293,352 48,948 Capital outlay 85,000 85,000 70,520 14,480

Total information technology 1,624,700 1,624,700 1,608,845 15,855

Total General Government 5,406,100 5,412,100 5,303,572 108,528

Public Safety Police protection Personal services 16,729,100 16,729,100 16,529,526 199,574 Supplies 1,091,700 1,050,000 1,077,558 (27,558) Services and charges 1,330,000 1,534,600 1,473,466 61,134 Capital outlay 350,000 361,700 389,332 (27,632)

Total police protection 19,500,800 19,675,400 19,469,882 205,518

Fire protection Personal services 9,448,100 9,448,100 9,305,401 142,699 Supplies 329,900 464,000 481,810 (17,810) Services and charges 388,800 388,800 446,924 (58,124) Capital outlay 50,000 303,500 366,062 (62,562)

Total fire protection 10,216,800 10,604,400 10,600,197 4,203

Emergency management Supplies - - 139 (139) Services and charges 108,600 108,600 84,485 24,115

Total emergency management 108,600 108,600 84,624 23,976

(Continued)

140 CITY OF ST. CLOUD, MINNESOTA Statement E-4 (Continued) GENERAL FUND SCHEDULE OF EXPENDITURES, COMPARED TO BUDGET For the Year Ended December 31, 2020

Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative)

Public Safety (Continued) Health/inspection Personal services $ 1,141,900 $ 1,141,900 $ 1,130,970 $ 10,930 Supplies 29,000 29,000 18,926 10,074 Services and charges 301,300 301,300 270,844 30,456

Total health/inspection 1,472,200 1,472,200 1,420,740 51,460

Building safety Personal services 1,214,500 1,214,500 1,131,082 83,418 Supplies 25,700 25,700 54,217 (28,517) Services and charges 223,100 223,100 228,095 (4,995)

Total building safety 1,463,300 1,463,300 1,413,394 49,906

Public safety contingency Personal services - - 283,910 (283,910)

Total Public Safety 32,761,700 33,323,900 33,272,747 51,153

Public Works Engineering Personal services 1,071,400 1,071,400 1,028,789 42,611 Supplies 24,500 24,500 30,574 (6,074) Services and charges 70,300 70,300 59,689 10,611

Total engineering 1,166,200 1,166,200 1,119,052 47,148

Street maintenance Personal services 3,003,500 3,003,500 2,828,002 175,498 Supplies 1,218,300 1,218,300 1,125,058 93,242 Services and charges 539,900 539,900 433,644 106,256 Capital outlay 450,000 450,000 439,331 10,669

Total street maintenance 5,211,700 5,211,700 4,826,035 385,665

Total Public Works 6,377,900 6,377,900 5,945,087 432,813

(Continued)

141 CITY OF ST. CLOUD, MINNESOTA Statement E-4 (Continued) GENERAL FUND SCHEDULE OF EXPENDITURES, COMPARED TO BUDGET For the Year Ended December 31, 2020

Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative)

Culture and Recreation Aging services Personal services $ 558,200 $ 558,200 $ 487,598 $ 70,602 Supplies 42,500 42,500 36,218 6,282 Services and charges 101,900 101,900 84,473 17,427 Capital outlay - - 13,720 (13,720)

Total aging services 702,600 702,600 622,009 80,591

Park and recreation Personal services 2,172,100 2,172,100 1,990,563 181,537 Supplies 459,700 459,700 246,189 213,511 Services and charges 622,500 622,500 410,610 211,890 Capital outlay 65,000 65,000 71,146 (6,146)

Total park and recreation 3,319,300 3,319,300 2,718,508 600,792

Total Culture and Recreation 4,021,900 4,021,900 3,340,517 681,383

Total Expenditures $ 48,567,600 $ 49,135,800 $ 47,861,923 $ 1,273,877

142 CITY OF ST. CLOUD, MINNESOTA Statement E-5

REVOLVING LOANS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 1,091 $ 1,091 Miscellaneous 17,000 - (17,000)

Total Revenues 17,000 1,091 (15,909)

Expenditures: Current Economic development Services and charges 17,000 119 16,881

Excess (Deficiency) of Revenues Over (Under) Expenditures - 972 972

Fund Balance - January 1 296,927 296,927 -

Fund Balance - December 31 $ 296,927 $ 297,899 $ 972

143 CITY OF ST. CLOUD, MINNESOTA Statement E-6

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Intergovernmental $ 584,000 $ 1,041,524 $ 457,524

Expenditures: Current Economic development Personal services 76,300 239,679 (163,379) Supplies 9,000 1,391 7,609 Services and charges 498,700 780,454 (281,754) Capital outlay Culture and recreation - 20,000 (20,000)

Total Expenditures 584,000 1,041,524 (457,524)

Excess (Deficiency) of Revenues Over (Under) Expenditures - - -

Fund Balance - January 1 - - -

Fund Balance - December 31 -$ -$ $ -

144 CITY OF ST. CLOUD, MINNESOTA Statement E-7

LIBRARY SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 1,997,500 $ 1,993,272 $ (4,228) Intergovernmental - 4,683 4,683 Charges for services 98,000 86,675 (11,325) Investment income (loss) 14,000 22,642 8,642

Total Revenues 2,109,500 2,107,272 (2,228)

Expenditures: Current Culture and recreation Supplies 22,000 21,098 902 Services and charges 415,600 381,852 33,748 Capital outlay Culture and recreation 5,500 5,418 82

Total Expenditures 443,100 408,368 34,732

Excess (Deficiency) of Revenues Over (Under) Expenditures 1,666,400 1,698,904 32,504

Other Financing Sources (Uses): Transfers out (1,697,500) (1,697,075) 425

Net Change in Fund Balance (31,100) 1,829 32,929

Fund Balance - January 1 1,943,994 1,943,994 -

Fund Balance - December 31 $ 1,912,894 $ 1,945,823 $ 32,929

145 CITY OF ST. CLOUD, MINNESOTA Statement E-8

FRANCHISE FEE DEVELOPMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 800,000 $ 799,881 $ (119) Investment income (loss) 300 15,128 14,828

Total Revenues 800,300 815,009 14,709

Expenditures: Current Economic development Services and charges 600,000 71,721 528,279

Excess (Deficiency) of Revenues Over (Under) Expenditures 200,300 743,288 542,988

Fund Balance - January 1 (1,578,019) (1,578,019) -

Fund Balance - December 31 $ (1,377,719) $ (834,731) $ 542,988

146 CITY OF ST. CLOUD, MINNESOTA Statement E-9

BROWNFIELDS EPA SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Intergovernmental -$ $ 92,075 $ 92,075

Expenditures: Current Economic development Services and charges - 92,075 (92,075)

Excess (Deficiency) of Revenues Over (Under) Expenditures - - -

Fund Balance - January 1 - - -

Fund Balance - December 31 -$ -$ $ -

147 CITY OF ST. CLOUD, MINNESOTA Statement E-10

ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 461,600 $ 460,190 $ (1,410) Intergovernmental - 1,080,346 1,080,346 Charges for services - 60,000 60,000 Investment income (loss) 3,000 14,964 11,964 Miscellaneous 30,000 - (30,000)

Total Revenues 494,600 1,615,500 1,120,900

Expenditures: Current Economic development Personal services 290,900 281,232 9,668 Supplies 2,700 3,420 (720) Services and charges 224,200 1,333,592 (1,109,392)

Total Expenditures 517,800 1,618,244 (1,100,444)

Excess (Deficiency) of Revenues Over (Under) Expenditures (23,200) (2,744) 20,456

Fund Balance - January 1 994,200 994,200 -

Fund Balance - December 31 $ 971,000 $ 991,456 $ 20,456

148 CITY OF ST. CLOUD, MINNESOTA Statement E-11

DEVELOPMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Licenses and Permits $ 785,400 $ 627,322 $ (158,078) Intergovernmental - 4,275 4,275 Investment income (loss) 2,000 9,371 7,371

Total Revenues 787,400 640,968 (146,432)

Expenditures: Current General government Personal services 497,300 356,420 140,880 Supplies 1,000 581 419 Services and charges 64,100 154,665 (90,565)

Total Expenditures 562,400 511,666 50,734

Excess (Deficiency) of Revenues Over (Under) Expenditures 225,000 129,302 (95,698)

Fund Balance - January 1 261,055 261,055 -

Fund Balance - December 31 $ 486,055 $ 390,357 $ (95,698)

149 CITY OF ST. CLOUD, MINNESOTA Statement E-12

PARK RESERVE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) $ 3,000 $ 10,651 $ 7,651 Miscellaneous - 140,184 140,184

Total Revenues 3,000 150,835 147,835

Expenditures: Capital outlay Culture and recreation 65,000 - 65,000

Excess (Deficiency) of Revenues Over (Under) Expenditures (62,000) 150,835 212,835

Fund Balance - January 1 530,052 530,052 -

Fund Balance - December 31 $ 468,052 $ 680,887 $ 212,835

150 CITY OF ST. CLOUD, MINNESOTA Statement E-13

GARDENS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 393,700 $ 372,376 $ (21,324) Intergovernmental - 1,846 1,846 Charges for services 14,000 13,096 (904) Investment income (loss) - (1,473) (1,473) Miscellaneous 170,000 152,320 (17,680)

Total Revenues 577,700 538,165 (39,535)

Expenditures: Current Culture and recreation Personal services 433,000 392,688 40,312 Supplies 90,800 92,970 (2,170) Services and charges 53,900 43,297 10,603 Capital outlay Culture and recreation 37,000 18,000 19,000

Total Expenditures 614,700 546,955 67,745

Excess (Deficiency) of Revenues Over (Under) Expenditures (37,000) (8,790) 28,210

Fund Balance - January 1 (101,473) (101,473) -

Fund Balance - December 31 $ (138,473) $ (110,263) $ 28,210

151 CITY OF ST. CLOUD, MINNESOTA Statement E-14

RETIRED AND SENIOR VOLUNTEER PROGRAM SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Intergovernmental $ 297,000 $ 321,925 $ 24,925 Investment income (loss) - 423 423 Miscellaneous 28,300 29,375 1,075

Total Revenues 325,300 351,723 26,423

Expenditures: Current Culture and recreation Personal services 360,300 303,373 56,927 Supplies 6,900 4,862 2,038 Services and charges 52,700 29,435 23,265

Total Expenditures 419,900 337,670 82,230

Excess (Deficiency) of Revenues Over (Under) Expenditures (94,600) 14,053 108,653

Other Financing Sources (Uses): Transfers in 100,000 100,000 -

Net Change in Fund Balance 5,400 114,053 108,653

Fund Balance - January 1 (2,240) (2,240) -

Fund Balance - December 31 $ 3,160 $ 111,813 $ 108,653

152 CITY OF ST. CLOUD, MINNESOTA Statement E-15

AIRPORT OPERATING SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 620,200 $ 618,398 $ (1,802) Intergovernmental 137,900 978,997 841,097 Charges for services 309,500 290,958 (18,542) Investment income (loss) - (2,103) (2,103) Miscellaneous 200 286 86

Total Revenues 1,067,800 1,886,536 818,736

Expenditures: Current Public works Personal services 720,100 668,794 51,306 Supplies 115,000 94,913 20,087 Services and charges 382,700 282,021 100,679 Capital outlay Public works - 11,696 (11,696)

Total Expenditures 1,217,800 1,057,424 160,376

Excess (Deficiency) of Revenues Over (Under) Expenditures (150,000) 829,112 979,112

Fund Balance - January 1 (83,136) (83,136) -

Fund Balance - December 31 $ (233,136) $ 745,976 $ 979,112

153 CITY OF ST. CLOUD, MINNESOTA Statement E-16

TIF - CENTRE SQUARE I AND II SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 1,566 $ 1,566

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 1,566 1,566

Fund Balance - January 1 79,681 79,681 -

Fund Balance - December 31 $ 79,681 $ 81,247 $ 1,566

154 CITY OF ST. CLOUD, MINNESOTA Statement E-17

TIF - PARAMOUNT RAMP SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 1,887 $ 1,887

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 1,887 1,887

Fund Balance - January 1 98,419 98,419 -

Fund Balance - December 31 $ 98,419 $ 100,306 $ 1,887

155 CITY OF ST. CLOUD, MINNESOTA Statement E-18

TIF - LINCOLN TARGET SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ -$ $ -

Expenditures: Current Economic development Services and charges - 34,400 (34,400)

Excess (Deficiency) of Revenues Over (Under) Expenditures - (34,400) (34,400)

Fund Balance - January 1 34,400 34,400 -

Fund Balance - December 31 $ 34,400 -$ $ (34,400)

156 CITY OF ST. CLOUD, MINNESOTA Statement E-19

TIF - FINGERHUT II SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes -$ $ 206,027 $ 206,027 Investment income (loss) - 122 122

Total Revenues - 206,149 206,149

Expenditures: Current Economic development Services and charges - 204,885 (204,885)

Excess (Deficiency) of Revenues Over (Under) Expenditures - 1,264 1,264

Fund Balance - January 1 93,743 93,743 -

Fund Balance - December 31 $ 93,743 $ 95,007 $ 1,264

157 CITY OF ST. CLOUD, MINNESOTA Statement E-20

TIF - WEBWAY II SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes -$ $ 132,166 $ 132,166 Investment income (loss) - 17,890 17,890

Total Revenues - 150,056 150,056

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 150,056 150,056

Fund Balance - January 1 897,778 897,778 -

Fund Balance - December 31 $ 897,778 $ 1,047,834 $ 150,056

158 CITY OF ST. CLOUD, MINNESOTA Statement E-21

TIF - ETC ENTERPRISES SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 28,000 $ 30,713 $ 2,713 Investment income (loss) - 1,432 1,432

Total Revenues 28,000 32,145 4,145

Expenditures: Current Economic development Services and charges 28,000 26,441 1,559

Excess (Deficiency) of Revenues Over (Under) Expenditures - 5,704 5,704

Fund Balance - January 1 85,364 85,364 -

Fund Balance - December 31 $ 85,364 $ 91,068 $ 5,704

159 CITY OF ST. CLOUD, MINNESOTA Statement E-22

TIF - EASTGATE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 30 $ 30

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 30 30

Fund Balance - January 1 3,435 3,435 -

Fund Balance - December 31 $ 3,435 $ 3,465 $ 30

160 CITY OF ST. CLOUD, MINNESOTA Statement E-23

TIF - GOETTENS RENTAL HOUSING SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 287 $ 287

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 287 287

Fund Balance - January 1 14,131 14,131 -

Fund Balance - December 31 $ 14,131 $ 14,418 $ 287

161 CITY OF ST. CLOUD, MINNESOTA Statement E-24

TIF - GOETTENS SINGLE FAMILY HOUSING SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 431 $ 431

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 431 431

Fund Balance - January 1 22,177 22,177 -

Fund Balance - December 31 $ 22,177 $ 22,608 $ 431

162 CITY OF ST. CLOUD, MINNESOTA Statement E-25

TIF - WESTWOOD VILLAGE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 145,000 $ 241,546 $ 96,546 Investment income (loss) - 9,541 9,541

Total Revenues 145,000 251,087 106,087

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures 145,000 251,087 106,087

Other Financing Sources (Uses): Transfers out (145,000) (133,125) 11,875

Net Change in Fund Balance - 117,962 117,962

Fund Balance - January 1 537,941 537,941 -

Fund Balance - December 31 $ 537,941 $ 655,903 $ 117,962

163 CITY OF ST. CLOUD, MINNESOTA Statement E-26

TIF - EICH HOLDINGS LLC PROJECT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Investment income (loss) -$ $ 133 $ 133

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures - 133 133

Fund Balance - January 1 6,128 6,128 -

Fund Balance - December 31 $ 6,128 $ 6,261 $ 133

164 CITY OF ST. CLOUD, MINNESOTA Statement E-27

TIF - WESTWOOD PHASE II SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 50,000 $ 44,614 $ (5,386)

Expenditures: Current Economic development Services and charges - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures 50,000 44,614 (5,386)

Other Financing Sources (Uses): Transfers in - 5,900 5,900 Transfers out (50,000) (50,600) (600)

Total Other Financing Sources (Uses) (50,000) (44,700) 5,300

Net Change in Fund Balances - (86) (86)

Fund Balance - January 1 94 94 -

Fund Balance - December 31 $ 94 $ 8 $ (86)

165 CITY OF ST. CLOUD, MINNESOTA Statement E-28

TIF - WESTWIND APARTMENTS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 24,000 $ 27,093 $ 3,093 Investment income (loss) - 151 151

Total Revenues 24,000 27,244 3,244

Expenditures: Current Economic development Services and charges 24,000 24,160 (160)

Excess (Deficiency) of Revenues Over (Under) Expenditures - 3,084 3,084

Fund Balance - January 1 18,358 18,358 -

Fund Balance - December 31 $ 18,358 $ 21,442 $ 3,084

166 CITY OF ST. CLOUD, MINNESOTA Statement E-29

TIF - MAHOWALD SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 9,700 $ 11,192 $ 1,492 Investment income (loss) - 6 6

Total Revenues 9,700 11,198 1,498

Expenditures: Current Economic development Services and charges 9,700 10,492 (792)

Excess (Deficiency) of Revenues Over (Under) Expenditures - 706 706

Fund Balance - January 1 3,564 3,564 -

Fund Balance - December 31 $ 3,564 $ 4,270 $ 706

167 CITY OF ST. CLOUD, MINNESOTA Statement E-30

TIF - NABC HOLDINGS/TRI COUNTY ABSTRACT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 8,000 $ 8,503 $ 503 Investment income (loss) - 6 6

Total Revenues 8,000 8,509 509

Expenditures: Current Economic development Services and charges 8,000 8,603 (603)

Excess (Deficiency) of Revenues Over (Under) Expenditures - (94) (94)

Fund Balance - January 1 (18,508) (18,508) -

Fund Balance - December 31 $ (18,508) $ (18,602) $ (94)

168 CITY OF ST. CLOUD, MINNESOTA Statement E-31

TIF - MODEL COLLEGE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 10,000 $ 9,922 $ (78) Investment income (loss) - 13 13

Total Revenues 10,000 9,935 (65)

Expenditures: Current Economic development Services and charges 10,000 10,450 (450)

Excess (Deficiency) of Revenues Over (Under) Expenditures - (515) (515)

Fund Balance - January 1 (33,824) (33,824) -

Fund Balance - December 31 $ (33,824) $ (34,339) $ (515)

169 CITY OF ST. CLOUD, MINNESOTA Statement E-32

TIF - MICROBIOLOGICS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 28,000 $ 53,844 $ 25,844 Investment income (loss) - 117 117

Total Revenues 28,000 53,961 25,961

Expenditures: Current Economic development Services and charges 28,000 49,604 (21,604)

Excess (Deficiency) of Revenues Over (Under) Expenditures - 4,357 4,357

Fund Balance - January 1 (990) (990) -

Fund Balance - December 31 $ (990) $ 3,367 $ 4,357

170 CITY OF ST. CLOUD, MINNESOTA Statement E-33

TIF - GRANITE BOWL SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 31,000 $ 32,889 $ 1,889 Investment income (loss) - 279 279

Total Revenues 31,000 33,168 2,168

Expenditures: Current Economic development Services and charges 31,000 29,666 1,334

Excess (Deficiency) of Revenues Over (Under) Expenditures - 3,502 3,502

Fund Balance - January 1 26,352 26,352 -

Fund Balance - December 31 $ 26,352 $ 29,854 $ 3,502

171 CITY OF ST. CLOUD, MINNESOTA Statement E-34

TIF - PARK INDUSTRIES II SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 15,000 $ 53,501 $ 38,501 Investment income (loss) - 140 140

Total Revenues 15,000 53,641 38,641

Expenditures: Current Economic development Services and charges 15,000 41,974 (26,974)

Excess (Deficiency) of Revenues Over (Under) Expenditures - 11,667 11,667

Fund Balance - January 1 21,134 21,134 -

Fund Balance - December 31 $ 21,134 $ 32,801 $ 11,667

172 CITY OF ST. CLOUD, MINNESOTA Statement E-35

MARCO TAX ABATEMENT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes -$ $ 40,763 $ 40,763 Intergovernmental - 22,273 22,273 Investment income (loss) - 113 113

Total Revenues - 63,149 63,149

Expenditures: Current Economic development Services and charges - 63,569 (63,569)

Excess (Deficiency) of Revenues Over (Under) Expenditures - (420) (420)

Fund Balance - January 1 30,713 30,713 -

Fund Balance - December 31 $ 30,713 $ 30,293 $ (420)

173 CITY OF ST. CLOUD, MINNESOTA Statement E-36

HOTEL - MOTEL TAX SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 918,000 $ 404,686 $ (513,314) Investment income (loss) - 1,856 1,856 Miscellaneous - 3,925 3,925

Total Revenues 918,000 410,467 (507,533)

Expenditures: Current General government Services and charges 918,000 393,753 524,247

Excess (Deficiency) of Revenues Over (Under) Expenditures - 16,714 16,714

Fund Balance - January 1 44,463 44,463 -

Fund Balance - December 31 $ 44,463 $ 61,177 $ 16,714

174 CITY OF ST. CLOUD, MINNESOTA Statement E-37

FIRE HAZARDOUS MATERIAL SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Intergovernmental $ 80,600 $ 53,972 $ (26,628) Investment income (loss) - 28 28

Total Revenues 80,600 54,000 (26,600)

Expenditures: Current Public safety Supplies 31,500 18,706 12,794 Services and charges 34,100 30,610 3,490 Capital outlay Public safety 14,000 - 14,000

Total Expenditures 79,600 49,316 30,284

Excess (Deficiency) of Revenues Over (Under) Expenditures 1,000 4,684 3,684

Fund Balance - January 1 (304) (304) -

Fund Balance - December 31 $ 696 $ 4,380 $ 3,684

175 CITY OF ST. CLOUD, MINNESOTA Statement E-38

METROPOLITAN AREA NETWORK CONSORTIUM SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Intergovernmental $ 120,800 $ 269,158 $ 148,358 Charges for services - 425 425 Investment income (loss) - 690 690 Miscellaneous - 37,775 37,775

Total Revenues 120,800 308,048 187,248

Expenditures: Current General government Supplies 8,200 92,517 (84,317) Services and charges 127,400 254,190 (126,790)

Total Expenditures 135,600 346,707 (211,107)

Excess (Deficiency) of Revenues Over (Under) Expenditures (14,800) (38,659) (23,859)

Other Financing Sources (Uses): Transfers in 31,700 31,700 -

Net Change in Fund Balance 16,900 (6,959) (23,859)

Fund Balance - January 1 101,231 101,231 -

Fund Balance - December 31 $ 118,131 $ 94,272 $ (23,859)

176 CITY OF ST. CLOUD, MINNESOTA Statement E-39

CABLE TV ACCESS OPERATING SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended December 31, 2020

Original and Variance with Final Budgeted Actual Final Budget - Amounts Amounts Positive (Negative)

Revenues: Taxes $ 212,000 $ 205,041 $ (6,959) Intergovernmental - 1,231 1,231 Investment income (loss) 6,000 16,582 10,582

Total Revenues 218,000 222,854 4,854

Expenditures: Current General government Personal services 86,800 76,658 10,142 Supplies 21,500 17,828 3,672 Services and charges 32,000 29,330 2,670 Capital outlay General government 50,000 - 50,000

Total Expenditures 190,300 123,816 66,484

Excess (Deficiency) of Revenues Over (Under) Expenditures 27,700 99,038 71,338

Fund Balance - January 1 868,836 868,836 -

Fund Balance - December 31 $ 896,536 $ 967,874 $ 71,338

177 CITY OF ST. CLOUD, MINNESOTA

INTERNAL SERVICE FUNDS

Internal Service Funds are used to account for assets held by the City as an agent for other governmental units.

The Internal Service Funds maintained by the City of St. Cloud and their purposes are:

SELF INSURANCE This fund was established to record the revenues and expenses for the City’s dental and health self- insurance programs.

ENERGY This fund was established to account for City-wide electric and solar services. This fund will also be used for the management of City-wide energy projects and initiatives.

INFORMATION TECHNOLOGY This fund was established to account for City-wide information technology expenditures.

178 CITY OF ST. CLOUD, MINNESOTA Statement F-1

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION December 31, 2020

Self Information Insurance Energy Technology Totals

Assets

Current Assets: Cash and cash equivalents 4,779,359$ -$ -$ 4,779,359$ Accounts receivable 62,549 877,530 - 940,079 Inventories - - 2,630 2,630 Prepaid items - - 191,851 191,851

Total Current Assets 4,841,908$ 877,530$ 194,481$ 5,913,919$

Liabilities

Current Liabilities: Accounts payable 926,646$ 145,082$ 63$ 1,071,791$ Due to other funds - 951,956 164,197 1,116,153 Unearned revenue 1,660 - - 1,660

Total Current Liabilities 928,306 1,097,038 164,260 2,189,604

Net Position

Net Position: Unrestricted 3,913,602 (219,508) 30,221 3,724,315

Total Liabilities and Net Position 4,841,908$ 877,530$ 194,481$ 5,913,919$

179 CITY OF ST. CLOUD, MINNESOTA Statement F-2 INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION For the Year Ended December 31, 2020

Self Information Insurance Energy Technology Totals

Operating Revenues: Sales and charges for services 971,311$ 2,431,545$ 575,071$ 3,977,927$

Operating Expenses: Supplies 3,616 - 184,765 188,381 Other services and charges 1,030,120 2,089,924 381,307 3,501,351

Total operating expenses 1,033,736 2,089,924 566,072 3,689,732

Operating income (loss) (62,425) 341,621 8,999 288,195

Nonoperating Revenues (Expenses): Investment income (loss) 104,084 (8,442) - 95,642 Intergovernmental - 19,667 - 19,667

Total nonoperating revenues (expenses) 104,084 11,225 - 115,309

Income (loss) before transfers 41,659 352,846 8,999 403,504

Transfers out - (225,013) - (225,013)

Change in net position 41,659 127,833 8,999 178,491

Net Position - January 1 3,871,943 (347,341) 21,222 3,545,824

Net Position - December 31 3,913,602$ (219,508)$ 30,221$ 3,724,315$

180 CITY OF ST. CLOUD, MINNESOTA Statement F-3

INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020

Self Information Insurance Energy Technology Totals

Cash Flows From Operating Activities: Cash received from customers $ 910,422 2,040,420$ $ 575,071 3,525,913$ Cash payments to suppliers for goods and services (610,236) (2,066,134) (600,152) (3,276,522)

Net Cash Provided by (Used in) Operating Activities 300,186 (25,714) (25,081) 249,391

Cash Flows From Noncapital Financing Activities: Transfer out to other funds - (225,013) - (225,013) Due to other funds - 239,502 25,081 264,583 State and other local governmental unit grants - 19,667 - 19,667

Net Cash Provided by (Used in) Noncapital Financing Activities - 34,156 25,081 59,237

Cash Flows From Investing Activities: Investment income (loss) 104,084 (8,442) - 95,642

Net Increase (Decrease) in Cash and Cash Equivalents 404,270 - - 404,270

Cash and Cash Equivalents at Beginning of Year 4,375,089 - - 4,375,089

Cash and Cash Equivalents at End of Year 4,779,359$ $ - $ - 4,779,359$

Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Operating income (loss) $ (62,425) $ 341,621 $ 8,999 $ 288,195

Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities (Increase) decrease in accounts receivable (62,549) (391,125) - (453,674) (Increase) decrease in prepaids - - (34,143) (34,143) Increase (decrease) in unearned revenue 1,660 - - 1,660 Increase (decrease) in accounts payable 423,500 23,790 63 447,353

Total adjustments 362,611 (367,335) (34,080) (38,804)

Net Cash Provided by (Used in) Operating Activities $ 300,186 $ (25,714) $ (25,081) $ 249,391

181 CITY OF ST. CLOUD, MINNESOTA

FIDUCIARY FUNDS

Fiduciary Funds are used to account for assets held by the City as an agent for other governmental units.

The Fiduciary Funds maintained by the City of St. Cloud and their purposes are:

LOCAL AREA SALES TAX This fund was established to account for the area half-cent sales tax that the City of St. Cloud administers on behalf of neighboring cities (Sartell, St. Augusta, St. Joseph, Sauk Rapids and Waite Park).

CENTRAL MN EMERGENCY SERVICES BOARD This fund was established by the City of St. Cloud and the following counties: Benton, Big Stone, Douglas, Grant, Kandiyohi, Meeker, Mille Lacs, Morrison, Otter Tail, Pope, Stearns, Stevens, Swift, Todd, Traverse, Wadena, Wilkin, and Wright Counties for the activities of a Regional Emergency Services Board.

VOLUNTEER FIRE RELIEF INVESTMENTS This fund was established to account for the investments turned over to the City by the former St. Cloud Volunteer Firefighter’s Relief Association. The City will hold the investments until the former members of the Relief Association become eligible for their pension.

182 CITY OF ST. CLOUD, MINNESOTA Statement G-1

CUSTODIAL FUNDS COMBINING STATEMENT OF FIDUCIARY NET POSITION December 31, 2020

Central MN Volunteer Total Local Area Emergency Fire Relief Custodial Sales Tax Services Board Investments Funds Assets Cash and investments -$ $ 294,783 229,722$ 524,505$ Due from other governmental units 923,772 60,876 - 984,648 Prepaid items - 2,894 - 2,894

Total Assets 923,772 358,553 229,722 1,512,047

Liabilities Accounts payable - 2 - 2 Due to other governmental units 923,772 46,676 - 970,448

Total Liabilities 923,772 46,678 - 970,450

Net Position -$ $ 311,875 229,722$ 541,597$

CUSTODIAL FUNDS COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Year Ended December 31, 2020

Central MN Volunteer Total Local Area Emergency Fire Relief Custodial Sales Tax Services Board Investments Funds Additions Miscellaneous income -$ $ 106 -$ 106$ Local sales tax collected for other governments 4,602,612 - - 4,602,612 Intergovernmental - 342,433 - 342,433 Investment income - 6,746 3,526 10,272

Total additions 4,602,612 349,285 3,526 4,955,423

Deductions Supplies - 81,491 - 81,491 Services and charges - 157,403 - 157,403 Local sales tax distributed to other governments 4,602,612 - - 4,602,612 Intergovernmental - 77,602 - 77,602

Total deductions 4,602,612 316,496 - 4,919,108

Change in net position - 32,789 3,526 36,315

Net Position - January 1 - 279,086 226,196 505,282

Net Position - December 31 -$ $ 311,875 229,722$ 541,597$

183 CITY OF ST. CLOUD, MINNESOTA

STATISTICAL SECTION Summary

This part of the City of St. Cloud’s annual comprehensive financial report presents detailed information to assist the reader in understanding the preceding financial statements and reports in the context of the City’s overall financial health. The statistical section is designed to complement the annual comprehensive financial report by providing an historical analysis of financial indicators.

Contents

Financial Trend Data These schedules contain trend information to illustrate how the City of St. Cloud’s financial performance has changed over time. They include an analysis of revenues and expenses and changes in Net Position for governmental activities and business-type activities.

Table 1 Net Position by Component Table 2 Changes in Net Position Table 3 Governmental Activities Tax Revenues by Source Table 4 Fund Balances of Governmental Funds Table 5 Changes in Fund Balances of Governmental Funds

Revenue Capacity Data These schedules contain historical information about the City of St. Cloud’s most significant local revenue source, property taxes. Information contained within these schedules includes an illustration of how the City’s tax capacity and tax rates have changed over time. Also included is a more comprehensive look at how tax rates of overlapping governments have changed over time.

Table 6 General Governmental Activities Tax Revenues by Source Table 7 Assessed Value and Estimated Actual Value of Taxable Property Table 8 Property Tax Rates Per $1,000 of Tax Capacity Value – All Direct and Overlapping Governments Table 9 Principal Property Taxpayers Table 10 Property Tax Levies and Collections

Debt Capacity Data These schedules present information designed to help the reader assess the affordability of the City of St. Cloud’s current level of outstanding debt and the City’s ability to issue additional debt in the future.

Table 11 Ratios of Outstanding Debt by Type Table 12 Ratios of General Bonded Debt Outstanding Table 13 Computation of Direct and Overlapping Bonded Debt Table 14 Legal Debt Margin Information Table 15 Pledged-Revenue Coverage

184 CITY OF ST. CLOUD, MINNESOTA

STATISTICAL SECTION (CONTINUED) Summary (Continued)

Demographic and Economic Information These schedules provide demographic and economic indicators to illustrate the overall environment in which the City of St. Cloud’s financial activities take place.

Table 16 Demographic and Economic Statistics Table 17 Principal Employers

Operating Indicators These schedules contain information about City services and capital assets to assist the reader in understanding how the information contained within the City of St. Cloud’s comprehensive annual financial report relates to the services the City provides and the activities it performs.

Table 18 Full-Time Equivalent City Government Employees by Function Table 19 Operating Indicators by Function Table 20 Capital Asset Statistics by Function

185 CITY OF ST. CLOUD, MINNESOTA

NET POSITION BY COMPONENT Last Ten Fiscal Years (accrual basis of accounting)

2020 2019 2018 2017

Governmental activities Net investment in capital assets $181,963,781 $174,868,424 $171,503,825 $183,169,979 Restricted 12,218,759 11,999,483 13,720,427 39,054,867 Unrestricted 9,737,875 3,362,126 (3,157,878) (26,247,849)

Total governmental activities net position $203,920,415 $190,230,033 $182,066,374 $195,976,997

Business-type activities Net investment in capital assets $232,153,630 $235,483,686 $231,673,813 $211,292,061 Unrestricted 45,295,768 45,626,154 53,964,007 52,182,566

Total business-type activities net position $277,449,398 $281,109,840 $285,637,820 $263,474,627

Primary government Net investment in capital assets $414,117,411 $410,352,110 $403,177,638 $394,462,040 Restricted 12,218,759 11,999,483 13,720,427 39,054,867 Unrestricted 55,033,643 48,988,280 50,806,129 25,934,717

Total primary government net position $481,369,813 $471,339,873 $467,704,194 $459,451,624

Source: City of St. Cloud financial records

186 Table 1

2016 2015 2014 2013 2012 2011

$ 178,974,090 $ 163,888,805 $ 160,384,988 $ 156,637,869 $ 161,078,384 $ 162,761,570 26,594,202 27,574,302 16,849,142 12,286,942 17,581,457 15,342,542 (13,338,603) 3,798,530 30,764,585 34,994,704 35,330,846 41,754,596

$ 192,229,689 $ 195,261,637 $ 207,998,715 $ 203,919,515 $ 213,990,687 $ 219,858,708

$ 208,889,717 $ 198,236,679 $ 196,006,527 $ 195,161,073 $ 196,490,030 $ 194,692,856 48,959,577 52,031,089 59,939,212 63,084,120 61,593,732 57,994,821

$ 257,849,294 $ 250,267,768 $ 255,945,739 $ 258,245,193 $ 258,083,762 $ 252,687,677

$ 387,863,807 $ 362,125,484 $ 356,391,515 $ 351,798,942 $ 357,568,414 $ 357,454,426 26,594,202 27,574,302 16,849,142 12,286,942 17,581,457 15,342,542 35,620,974 55,829,619 90,703,797 98,078,824 96,924,578 99,749,417

$ 450,078,983 $ 445,529,405 $ 463,944,454 $ 462,164,708 $ 472,074,449 $ 472,546,385

187 CITY OF ST. CLOUD, MINNESOTA

CHANGES IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting)

2020 2019 2018 2017

Expenses Governmental activities: General government $ 7,391,607 $ 7,467,993 $ 7,096,788 $ 6,853,919 Public safety 34,446,312 33,432,881 33,153,711 33,629,114 Public works 16,880,881 19,497,058 18,732,803 19,377,841 Culture and recreation 7,382,538 8,025,523 8,327,127 7,309,732 Economic development 3,435,252 1,565,935 4,473,390 1,696,435 Interest on long-term debt 1,914,768 2,125,254 2,357,287 3,058,781

Total governmental activities expenses 71,451,358 72,114,644 74,141,106 71,925,822

Business-type activities: Water utility 11,890,223 12,997,537 10,885,595 10,222,554 Wastewater utility 12,936,150 12,994,606 12,389,074 11,500,918 Hydroelectric utility 1,346,058 1,371,047 1,517,039 1,427,625 Stormwater utility 2,758,926 3,062,844 3,122,014 1,351,809 Street light utility 1,356,686 1,386,498 1,311,035 2,685,104 Parking system 2,062,092 2,598,737 2,532,900 2,701,313 Refuse service 3,977,753 3,943,439 3,778,248 3,358,036 Municipal athletic complex 1,585,698 1,779,183 1,696,829 1,743,534 River's edge convention center 3,509,205 4,594,122 4,359,046 4,482,748

Total business-type activities expenses 41,422,791 44,728,013 41,591,780 39,473,641

Total primary government expenses $ 112,874,149 $ 116,842,657 $ 115,732,886 $ 111,399,463

188 Table 2

2016 2015 2014 2013 2012 2011

$ 7,279,001 $ 7,364,979 $ 7,683,251 $ 7,372,601 $ 7,121,380 $ 6,650,947 37,999,137 28,706,380 27,909,153 28,702,828 28,594,698 28,819,550 18,317,949 17,929,302 30,303,650 17,431,094 17,193,265 16,821,069 7,964,899 6,738,247 5,460,611 5,598,041 5,159,780 5,215,732 2,869,976 2,068,505 1,977,811 3,366,212 1,491,734 1,380,105 3,334,527 3,208,827 3,118,741 3,291,133 3,898,150 4,333,220

77,765,489 66,016,240 76,453,217 65,761,909 63,459,007 63,220,623

9,892,470 9,895,676 9,955,015 8,769,397 8,804,190 8,157,729 11,606,646 11,037,493 11,159,727 10,689,936 8,844,709 8,157,392 1,519,866 1,114,060 1,155,281 1,178,725 1,180,936 1,343,900 1,484,355 1,088,859 1,224,767 1,061,199 875,101 925,550 4,663,058 1,140,271 1,107,752 1,125,064 872,732 849,536 2,246,689 2,050,546 2,019,219 1,759,013 1,743,577 1,620,967 3,634,937 3,567,571 3,233,109 3,900,119 2,711,114 2,632,944 1,831,019 2,056,564 1,929,231 1,922,947 1,838,056 1,843,130 4,497,936 4,263,541 4,236,883 4,076,675 3,697,843 1,999,329

41,376,976 36,214,581 36,020,984 34,483,075 30,568,258 27,530,477

$ 119,142,465 $ 102,230,821 $ 112,474,201 $ 100,244,984 $ 94,027,265 $ 90,751,100

(Continued)

189 CITY OF ST. CLOUD, MINNESOTA

CHANGES IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting)

2020 2019 2018 2017

Program Revenues Governmental activities: Charges for services: General government $ 1,741,543 $ 2,148,310 $ 2,310,189 $ 2,144,266 Public safety 2,190,175 2,491,784 2,777,316 2,619,639 Public works 2,051,815 2,634,774 2,575,986 1,791,906 Culture and recreation 416,887 564,467 618,137 639,191 Economic development 80,691 20,496 32,278 148,704 Operating grants and contributions 12,679,252 5,562,071 5,263,442 5,137,833 Capital grants and contributions 7,150,516 8,976,636 13,239,750 15,402,124

Total governmental activities program revenues 26,310,879 22,398,538 26,817,098 27,883,663

Business-type activities: Charges for services: Water utility 12,644,135 10,972,662 10,436,903 10,358,733 Wastewater utility 10,675,066 11,371,635 10,161,867 10,116,082 Hydroelectric utility 2,615,460 2,755,986 2,737,254 2,866,763 Stormwater utility 1,630,710 1,378,320 953,534 932,714 Street light utility 1,331,941 1,235,016 1,199,516 1,190,681 Parking system 757,899 1,835,901 1,831,651 1,946,849 Refuse service 4,192,279 3,953,711 3,839,606 3,696,667 Municipal athletic complex 838,979 1,227,030 1,182,551 1,218,557 River's edge convention center 572,815 1,705,355 1,750,446 1,570,377 Operating grants and contributions 715,803 133,606 134,649 163,810 Capital grants and contributions 2,368,699 3,319,287 14,254,012 5,922,974

Total business-type activities program revenues 38,343,786 39,888,509 48,481,989 39,984,207

Total primary government program revenues $ 64,654,665 $ 62,287,047 $ 75,299,087 $ 67,867,870

190 Table 2 (Continued)

2016 2015 2014 2013 2012 2011

$ 2,428,429 $ 1,987,411 $ 1,949,576 $ 1,777,118 $ 1,410,672 $ 1,315,110 2,698,211 2,476,914 2,125,654 1,978,192 2,615,529 2,360,498 2,094,193 2,347,396 1,669,898 995,862 558,791 772,855 625,234 1,456,794 455,055 542,680 519,723 539,796 119,761 460,148 49,803 199,053 174,014 91,652 5,274,705 5,167,142 5,403,033 5,036,930 6,821,535 6,707,150 12,968,065 13,132,453 19,704,164 6,882,861 3,299,324 8,010,121

26,208,598 27,028,258 31,357,183 17,412,696 15,399,588 19,797,182

10,202,223 9,988,299 9,983,639 10,109,381 10,424,466 8,990,416 9,500,508 8,764,172 7,853,060 7,132,509 7,015,512 7,302,504 2,678,340 2,278,962 2,510,108 2,634,819 2,519,875 2,628,538 916,546 857,802 855,231 844,224 744,991 917,097 1,191,491 1,099,251 930,295 942,596 939,455 1,076,717 1,858,734 1,802,845 1,721,085 1,622,248 1,689,165 1,619,868 3,481,905 3,377,600 3,127,189 3,132,715 3,074,898 3,195,711 1,231,964 1,475,537 1,321,991 1,301,145 1,304,121 1,176,664 1,832,505 1,655,125 1,636,944 1,432,870 1,460,397 1,113,116 345,249 199,707 434,434 160,054 217,901 180,085 13,104,483 2,485,441 451,577 3,705,836 3,216,951 13,038,249

46,343,948 33,984,741 30,825,553 33,018,397 32,607,732 41,238,965

$ 72,552,546 $ 61,012,999 $ 62,182,736 $ 50,431,093 $ 48,007,320 $ 61,036,147

(Continued)

191 CITY OF ST. CLOUD, MINNESOTA

CHANGES IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting)

2020 2019 2018 2017

Net (expense)/revenue Governmental activities $ (45,140,479) $ (49,716,106) $ (47,324,008) $ (44,042,159) Business-type activities (3,079,005) (4,839,504) 6,890,209 510,566

Total primary government net (expense)/revenue $ (48,219,484) $ (54,555,610) $ (40,433,799) $ (43,531,593)

General Revenues and Other Changes in Net Position Governmental activities: Taxes General property $ 28,479,282 $ 27,189,751 $ 25,558,417 $ 24,539,994 Hotel-motel 427,433 911,701 958,470 925,129 Local area 6,495,244 6,584,975 6,430,389 6,340,279 Tax increment 892,773 855,126 824,166 822,232 Franchise 4,537,203 4,587,474 4,984,746 3,950,978 Unrestricted grants and contributions 13,727,980 12,869,777 12,816,901 12,288,976 Interest earnings 1,079,918 1,478,835 440,263 771,850 Gain on sale of capital assets 28,958 200 2,701,279 - Miscellaneous - - - - Proceeds from insurance - - - - Transfers 3,162,070 3,401,926 (15,544,080) (1,849,971)

Total governmental activities 58,830,861 57,879,765 39,170,551 47,789,467

192 Table 2 (Continued)

2016 2015 2014 2013 2012 2011

$ (51,556,891) $ (38,987,982) $ (45,096,034) $ (48,349,213) $ (48,059,419) $ (43,423,441) 4,966,972 (2,229,840) (5,195,431) (1,464,678) 2,039,474 13,708,488

$ (46,589,919) $ (41,217,822) $ (50,291,465) $ (49,813,891) $ (46,019,945) $ (29,714,953)

$ 23,693,551 $ 23,269,621 $ 21,927,600 $ 21,406,573 $ 21,069,836 $ 22,125,456 947,554 859,930 829,886 761,839 713,308 666,101 6,391,579 6,114,849 5,870,081 5,658,545 5,454,640 4,393,965 772,615 756,627 945,519 853,032 1,355,965 1,665,746 3,871,939 3,768,716 4,085,119 3,772,120 3,358,195 3,610,133 12,302,976 12,048,785 11,837,802 10,159,768 10,215,127 10,224,219 249,512 358,137 2,513,183 (1,256,625) 633,130 1,142,918 ------263 134 ------603,334 295,217 1,119,076 1,166,044 (237,205) (609,066) 611,209

48,524,943 48,295,741 49,175,234 41,118,047 42,191,398 45,043,215

(Continued)

193 CITY OF ST. CLOUD, MINNESOTA

CHANGES IN NET POSITION Last Ten Fiscal Years (accrual basis of accounting)

2020 2019 2018 2017

General Revenues and Other Changes in Net Position (Continued) Business-type activities: Taxes General property -$ -$ -$ -$ Food and beverage 1,287,691 1,604,044 1,566,232 1,523,330 Hotel-motel 322,250 687,761 723,056 697,905 Tax increment 68,594 70,028 67,643 123,840 Interest earnings 902,098 1,255,517 494,471 911,721 Gain on sale of capital assets - 96,100 53,075 8,000 Transfers (3,162,070) (3,401,926) 15,544,080 1,849,971

Total business-type activities (581,437) 311,524 18,448,557 5,114,767

Total primary government $ 58,249,424 $ 58,191,289 $ 57,619,108 $ 52,904,234

Changes in Net Position Governmental activities $ 13,690,382 $ 8,163,659 $ (8,153,457) $ 3,747,308 Business-type activities (3,660,442) (4,527,980) 25,338,766 5,625,333

Total primary government $ 10,029,940 $ 3,635,679 $ 17,185,309 $ 9,372,641

Source: City of St. Cloud financial records

194 Table 2 (Continued)

2016 2015 2014 2013 2012 2011

-$ -$ -$ -$ -$ $ 7 -$ 1,481,088 1,450,613 1,366,388 1,326,730 1,298,855 1,242,212 714,821 648,569 626,053 574,722 538,130 502,497 ------689,919 683,314 1,996,534 (512,548) 910,553 1,024,713 23,943 67,923 73,046 - - - (295,217) (1,119,076) (1,166,044) 237,205 609,066 (611,209)

2,614,554 1,731,343 2,895,977 1,626,109 3,356,611 2,158,213

$ 51,139,497 $ 50,027,084 $ 52,071,211 $ 42,744,156 $ 45,548,009 $ 47,201,428

$ (3,031,948) $ 9,307,759 $ 4,079,200 $ (7,231,166) $ (5,868,021) $ 1,619,774 7,581,526 (498,497) (2,299,454) 161,431 5,396,085 15,866,701

$ 4,549,578 $ 8,809,262 $ 1,779,746 $ (7,069,735) $ (471,936) $ 17,486,475

195 CITY OF ST. CLOUD, MINNESOTA Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (accrual basis of accounting)

Fiscal Property Tax Hotel and Local Franchise Year Tax Increment Motel Tax Area Tax Tax Total

2020 $ 28,479,282 892,773$ 427,433$ 6,495,244$ 4,537,203$ $ 40,831,935 2019 27,189,751 855,126 911,701 6,584,975 4,587,474 40,129,027 2018 25,558,417 824,166 958,470 6,430,389 4,984,746 38,756,188 2017 24,539,994 822,232 925,129 6,340,279 3,950,978 36,578,612 2016 23,693,551 772,615 947,554 6,391,579 3,871,939 35,677,238 2015 23,269,621 756,627 859,732 6,115,047 3,768,716 34,769,743 2014 21,927,600 945,519 829,886 5,870,081 4,085,119 33,658,205 2013 21,406,573 853,032 761,839 5,658,545 3,772,120 32,452,109 2012 21,069,836 1,355,965 713,308 5,454,640 3,358,195 31,951,944 2011 21,108,156 1,665,746 666,101 5,411,265 3,610,133 32,461,401

Source: City of St. Cloud financial records

196 CITY OF ST. CLOUD, MINNESOTA

FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting)

2020 2019 2018 2017

General fund Nonspendable $ 241,201 $ 192,311 $ 199,966 $ 182,041 Restricted - - - - Assigned 254,718 253,718 293,329 214,440 Unassigned 23,013,927 19,345,339 19,718,151 18,799,654

Total general fund $ 23,509,846 $19,791,368 $20,211,446 $19,196,135

All other governmental funds Nonspendable Special revenue funds $ 23,136 $ 25,524 $ 7,718 $ 483 Restricted Special revenue funds 5,221,782 4,960,301 4,696,749 4,358,981 Debt service funds 2,943,985 3,026,840 2,895,901 25,207,914 Capital projects funds 5,179,926 5,233,416 7,378,234 10,904,109 Committed Special revenue funds 3,287,148 2,038,739 1,810,432 1,678,957 Assigned Capital projects funds 28,292,535 28,618,015 23,927,388 19,772,240 Unassigned Special revenue funds (997,935) (1,828,888) (2,400,765) (81,744) Debt service funds (377) (5,026) (1,343) (2,011) Capital projects funds (1,543,287) (2,360,116) (3,001,148) (4,661,772)

Total all other governmental funds $ 42,406,913 $39,708,805 $35,313,166 $57,177,157

Source: City of St. Cloud financial records

197 Table 4

2016 2015 2014 2013 2012 2011

$ 194,776 $ 191,099 $ 25,655 $ 156,831 $ 72,369 $ 99,787 ------454,990 231,040 268,939 510,939 716,439 876,111 1,126,811 19,181,704 18,771,078 17,647,251 17,440,703 19,088,077 18,890,811

$ 19,607,520 $ 19,231,116 $ 18,183,845 $ 18,313,973 $ 20,036,557 $ 20,572,399

$ 4,057 $ 1,536 -$ $ 267,133 $ 257,587 $ 259,007

4,146,876 5,641,496 5,366,455 4,785,131 6,074,756 5,687,823 9,580,701 14,400,108 3,073,740 3,099,206 8,566,653 4,903,725 14,274,696 2,354,181 4,055,687 4,216,033 2,622,218 4,137,800

2,130,073 2,502,864 2,515,700 2,542,484 4,326,325 4,198,918

15,190,147 22,239,282 19,777,196 18,812,234 17,731,830 21,534,549

(113,241) (125,840) (122,047) (211,483) (222,479) (227,206) ------(850) (6,402,662) (6,907,172) (9,568,754) (7,895,054) (7,750,263) (11,888,215)

$ 38,810,647 $ 40,106,455 $ 25,097,977 $ 25,615,684 $ 31,606,627 $ 28,605,551

198 CITY OF ST. CLOUD, MINNESOTA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting)

2020 2019 2018 2017

Revenues: Taxes $ 40,728,037 $ 40,151,795 $ 38,780,638 $ 36,603,552 Licenses and permits 2,614,946 2,809,301 3,183,189 2,756,099 Intergovernmental 30,861,248 23,650,356 25,764,776 20,627,367 Charges for services 3,077,488 4,208,632 4,070,525 3,230,122 Special assessments 2,955,748 3,311,584 3,429,112 4,623,582 Fines 507,518 753,004 910,775 1,052,975 Investment income 984,276 1,372,176 401,848 702,867 Miscellaneous 493,805 636,708 1,597,812 9,455,720

Total revenues 82,223,066 76,893,556 78,138,675 79,052,284

Expenditures: General government 6,672,410 6,709,371 6,598,099 6,582,904 Public safety 32,566,669 32,168,612 31,760,057 29,487,653 Public works 6,881,591 8,148,255 8,687,001 7,869,416 Culture and recreation 4,597,941 5,292,712 5,292,170 5,292,214 Miscellaneous (economic development) 3,310,423 1,563,081 4,480,225 1,675,414 Capital outlay 14,915,820 20,097,871 20,670,879 19,384,164 Debt service Principal 9,780,000 9,460,000 32,470,000 13,835,000 Interest and fiscal charges 2,962,543 3,023,657 3,297,165 3,565,550

Total expenditures 81,687,397 86,463,559 113,255,596 87,692,315

Excess of revenues over (under) expenditures 535,669 (9,570,003) (35,116,921) (8,640,031)

199 Table 5

2016 2015 2014 2013 2012 2011

$ 35,705,601 $ 34,870,857 $ 33,735,377 $ 32,609,256 $ 32,213,411 $ 32,651,592 2,875,229 2,468,959 2,199,026 1,950,070 2,146,128 1,859,033 24,451,579 20,639,518 31,486,232 20,039,644 21,316,768 22,238,267 4,059,034 3,939,766 3,063,810 2,385,097 1,909,111 2,098,185 5,257,102 6,095,809 5,957,946 4,530,410 4,170,440 4,716,545 864,219 878,949 862,675 901,901 1,021,053 956,325 231,380 338,742 2,417,880 (1,227,930) 622,983 1,121,682 4,229,775 2,968,985 1,441,508 2,891,474 2,382,175 2,476,117

77,673,919 72,201,585 81,164,454 64,079,922 65,782,069 68,117,746

6,412,058 6,469,995 6,769,252 6,461,562 6,254,116 6,052,607 28,395,830 26,662,846 26,193,721 25,311,815 25,636,799 25,946,877 6,941,939 6,209,188 18,426,073 6,021,036 6,062,765 5,940,156 5,828,609 4,736,722 3,635,042 3,476,214 3,242,024 3,414,593

2,841,811 1,903,524 1,958,976 2,982,079 1,519,411 1,417,145 36,624,704 23,599,329 23,728,996 13,742,823 9,518,785 12,687,575

20,500,000 9,335,000 9,935,000 10,750,000 12,626,474 13,132,680 3,627,358 3,196,326 3,248,514 3,528,919 4,090,108 4,530,535

111,172,309 82,112,930 93,895,574 72,274,448 68,950,482 73,122,168

(33,498,390) (9,911,345) (12,731,120) (8,194,526) (3,168,413) (5,004,422)

(Continued)

200 CITY OF ST. CLOUD, MINNESOTA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting)

2020 2019 2018 2017

Other financing sources (uses): Transfers in $ 17,937,118 $ 17,875,120 $ 38,167,019 $ 9,348,222 Transfers out (12,085,159) (11,527,862) (36,185,731) (8,522,554) Bond and loan issuance - 6,170,000 7,860,000 22,845,000 Payment on refunded bonds - - - - Premium on bonds issued - 1,028,106 1,083,955 2,838,112 Proceeds from insurance - - - - Sale of land - - - - Sale of capital assets 28,958 200 3,342,998 86,376 Total other financing sources (uses) 5,880,917 13,545,564 14,268,241 26,595,156

Special item - - - -

Net change in fund balances $ 6,416,586 $ 3,975,561 $ (20,848,680) $ 17,955,125

Debt service as a percentage of noncapital expenditures 19.08% 18.81% 38.63% 25.47%

Source: City of St. Cloud financial records

201 Table 5 (Continued)

2016 2015 2014 2013 2012 2011

$ 16,389,301 $ 14,859,328 $ 16,642,704 $ 21,377,699 $ 19,798,479 $ 22,739,324 (14,085,764) (13,172,610) (15,827,324) (19,516,800) (18,256,018) (24,180,847) 20,270,000 9,280,000 5,335,000 5,050,000 2,640,000 - - - - (6,385,000) (1,650,000) - (7,015,000) 2,508,638 718,608 310,292 221,749 11,483 - - - 379,136 - - 603,334 200,377 - - - 10,000 - - - 884,919 18,823 19,116 150,999 11,877 3,638

25,967,094 12,083,285 104,788 5,633,647 4,809,155 (8,252,508)

- - - - - 2,215,818 -

$ (7,531,296) $ 2,171,940 $ (12,626,332) $ (2,560,879) $ 3,856,560 $ (13,256,930)

32.37% 21.42% 18.79% 24.40% 28.13% 29.23%

202 CITY OF ST. CLOUD, MINNESOTA Table 6 GENERAL GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE Last Ten Fiscal Years (modified accrual basis of accounting)

Hotel - Local Fiscal Property Tax Motel Area Franchise Year Tax Increment Tax Tax Tax Total

2020 $ 28,375,384 892,773$ 427,433$ 6,495,244$ 4,537,203$ $ 40,728,037 2019 27,212,519 855,126 911,701 6,584,975 4,587,474 40,151,795 2018 25,582,867 824,166 958,470 6,430,389 4,984,746 38,780,638 2017 24,564,934 822,232 925,129 6,340,279 3,950,978 36,603,552 2016 23,721,914 772,615 947,554 6,391,579 3,871,939 35,705,601 2015 23,370,735 756,627 859,732 6,115,047 3,768,716 34,870,857 2014 22,004,772 945,519 829,886 5,870,081 4,085,119 33,735,377 2013 21,563,720 853,032 761,839 5,658,545 3,772,120 32,609,256 2012 21,331,303 1,355,965 713,308 5,454,640 3,358,195 32,213,411 2011 21,298,347 1,665,746 666,101 5,411,264 3,610,134 32,651,592

Source: City of St. Cloud financial records

203 CITY OF ST. CLOUD, MINNESOTA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years

Fiscal Year Less: Ended Real Personal Tax Exempt December 31 Property Other Real Property

2020 $ 4,311,842,100 $ 59,859,400 NA 2019 4,137,998,600 58,579,900 NA 2018 3,929,098,700 60,380,100 NA 2017 3,798,912,300 55,573,700 NA 2016 3,695,123,400 53,634,200 NA 2015 3,593,872,200 50,920,300 NA 2014 3,523,008,900 52,838,700 NA 2013 3,533,303,700 49,830,600 NA 2012 3,715,427,800 37,025,300 NA 2011 3,881,285,900 33,974,600 NA

Source: City of St. Cloud Property Tax and Records

204 Table 7

Assesed Estimated (Tax Capacity) Total Taxable Total Actual Value as a Assessed Direct Taxable Percentage of Value Tax Rate Market Value Taxable Mkt Value

$ 4,371,701,500 50.506 $ 4,650,950,000 94.00% 4,196,578,500 49.995 4,464,445,213 94.00% 3,989,478,800 48.195 4,244,126,400 94.00% 3,854,486,000 47.752 4,100,517,000 94.00% 3,748,757,600 47.568 3,946,060,600 95.00% 3,644,792,500 47.582 3,836,623,700 95.00% 3,575,847,600 45.282 3,686,441,000 97.00% 3,583,134,300 44.347 3,771,720,000 95.00% 3,752,453,100 42.603 3,949,950,600 95.00% 3,915,260,500 41.307 4,121,326,800 95.00%

205 CITY OF ST. CLOUD, MINNESOTA Table 8 PROPERTY TAX RATES PER $1,000 OF TAX CAPACITY VALUE - ALL DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years

City of St. Cloud Direct Rate Overlapping Rates Housing and Northstar Fiscal Debt Total School Transit City Redevelopment Rail Year County Operating Service Direct District Counties District EDA Authority Authority Total

2020 Stearns 42.093 8.413 50.506 26.361 50.363 3.530 0.903 0.908 0.064 132.635 Benton 42.093 8.413 50.506 26.287 58.360 3.530 0.903 0.908 0.000 140.494 Sherburne 42.093 8.413 50.506 26.507 47.396 3.535 0.905 0.910 0.000 129.759

2019 Stearns 41.346 8.649 49.995 27.803 51.365 3.691 0.901 0.901 0.099 134.755 Benton 41.346 8.649 49.995 27.728 61.403 3.691 0.901 0.901 0.000 144.619 Sherburne 41.346 8.649 49.995 27.796 47.896 3.691 0.901 0.901 0.000 131.180

2018 Stearns 40.677 7.518 48.195 28.967 52.488 3.052 0.903 0.903 0.105 134.613 Benton 40.677 7.518 48.195 34.295 64.315 3.052 0.903 0.903 0.000 151.663 Sherburne 40.677 7.518 48.195 28.906 49.321 3.052 0.903 0.903 1.501 132.781

2017 Stearns 40.112 7.640 47.752 30.505 52.337 3.194 0.881 0.925 0.106 135.700 Benton 40.112 7.640 47.752 30.378 65.910 3.194 0.881 0.925 0.000 149.040 Sherburne 40.112 7.640 47.752 30.442 50.423 3.194 0.881 0.925 1.656 135.273

2016 Stearns 39.905 7.663 47.568 23.632 51.632 3.288 0.853 0.933 0.166 128.072 Benton 39.905 7.663 47.568 23.558 67.033 3.288 0.853 0.933 0.000 143.233 Sherburne 39.905 7.663 47.568 23.623 50.440 3.288 0.853 0.933 1.909 128.614

2015 Stearns 39.402 8.180 47.582 24.223 53.326 3.457 0.826 0.797 0.177 130.388 Benton 39.402 8.180 47.582 24.151 70.522 3.457 0.826 0.797 0.000 147.335 Sherburne 39.402 8.180 47.582 24.214 51.940 3.457 0.826 0.797 2.026 130.842

2014 Stearns 36.672 8.610 45.282 20.039 54.748 1.560 0.796 0.815 0.185 123.425 Benton 36.672 8.610 45.282 19.963 77.499 1.560 0.796 0.815 0.000 145.915 Sherburne 36.672 8.610 45.282 20.031 54.821 1.560 0.796 0.815 2.374 125.679

2013 Stearns 36.997 7.350 44.347 20.387 55.659 1.556 0.796 0.815 0.249 123.809 Benton 36.997 7.350 44.347 20.309 77.634 1.556 0.797 0.816 0.000 145.459 Sherburne 36.997 7.350 44.347 20.380 54.382 1.556 0.797 0.816 2.534 124.812

2012 Stearns 35.323 7.280 42.603 20.025 55.243 1.502 0.771 0.789 0.285 121.218 Benton 35.323 7.280 42.603 19.951 73.177 1.502 0.771 0.789 0.000 138.793 Sherburne 35.323 7.280 42.603 20.021 51.978 1.502 0.771 0.789 2.422 120.086

2011 Stearns 33.937 7.370 41.307 18.591 51.565 1.372 N/A 0.649 0.426 113.910 Benton 33.937 7.370 41.307 18.520 67.221 1.372 N/A 0.649 0.000 129.069 Sherburne 33.937 7.370 41.307 18.586 46.310 1.372 N/A 0.649 2.158 110.382

206 CITY OF ST. CLOUD, MINNESOTA Table 9 PRINCIPAL PROPERTY TAXPAYERS Current Year and Nine Years Ago

2020 2011 Percentage Percentage *Tax of Total City *Tax of Total City Capacity Tax Capacity Capacity Tax Capacity Taxpayer Value Rank Value Value Rank Value

St. Cloud Mall LLC, General Growth Properties $1,241,970 1 2.40 % $1,388,670 1 3.44 %

Xcel Energy/NSP Minnesota 910,047 2 1.76 % 878,391 2 2.19 %

St. Cloud Hospital/CentraCare Clinic/ St. Benedict's Center/Benet Place 866,432 3 1.67 % 760,221 3 1.69 %

Eleven Investments LLC 345,860 4 0.67 %

SIP St. Cloud LLC (Bluestem) 344,450 5 0.67 %

St. Cloud Rainbow Village LLC 325,790 6 0.63 % 248,610 8 0.61 %

Coborns Inc. 242,200 7 0.47 % 231,540 9 0.59 %

Anderson Trucking Service 227,699 8 0.44 %

DHL St. Cloud LLC (Division Place) 214,040 9 0.41 %

CRW St. Cloud LLC 191,650 10 0.37 %

IRET Properties 514,530 4 1.20 %

Welsh Fingerhut MN LLC (former Fingerhut Corp) 344,450 5 0.85 %

Antioch Company/Creative Memories 396,620 6 0.73 %

Target 278,420 7 0.71 %

Minnesota Logistics 233,380 10 0.58 %

9.49 % 12.59 %

*Combination of commercial and residential properties with mixed weighted tax rates affects tax capacity.

Source: City of St. Cloud Property Tax Records

207 CITY OF ST. CLOUD, MINNESOTA Table 10 PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years

Collected within the Fiscal Year Total Tax Fiscal Year of the Levy Collections in Total Collections to Date Ended Levy for Percentage Subsequent Percentage December 31 Fiscal Year Amount of Levy Years Amount of Levy

2020 $ 28,317,492 $ 28,096,202 99.2 % -$ $ 28,096,202 99.2 % 2019 27,184,592 27,045,200 99.5 % - 27,045,200 99.5 % 2018 25,525,992 25,352,117 99.3 % - 25,352,117 99.3 % 2017 24,532,400 24,428,841 99.6 % - 24,428,841 99.6 % 2016 23,747,400 23,566,123 99.2 % - 23,566,123 99.2 % 2015 23,131,400 22,983,523 99.4 % - 22,983,523 99.4 % 2014 21,691,900 21,499,048 99.1 % - 21,499,048 99.1 % 2013 21,234,900 21,033,136 99.0 % - 21,033,136 99.0 % 2012 21,234,900 20,923,680 98.5 % - 20,923,680 98.5 % 2011 21,211,200 20,804,552 98.1 % 195,792 21,000,344 99.0 %

Source: City of St. Cloud Financial Records

208 CITY OF ST. CLOUD, MINNESOTA

RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years

Governmental Activities General General Certificates Sales Tax General Obligation Obligation Fiscal of Revenue Obligation Improvement Tax Increment Loans Year Indebtedness Bonds Bonds Bonds Bonds Payable

2020 $ 5,816,298 $ 10,506,271 $ 30,382,735 $ 31,591,776 $ 1,360,000 $ 3,754,702 2019 6,706,515 12,442,823 32,934,339 36,814,006 1,500,000 3,754,702 2018 7,566,732 14,019,375 30,039,237 40,271,372 1,630,000 3,754,702 2017 8,386,949 15,545,927 49,383,112 42,745,370 1,760,000 3,754,702 2016 8,727,166 16,932,478 26,022,166 53,561,333 1,895,000 3,754,702 2015 215,000 24,570,000 26,975,000 45,090,000 2,025,000 3,754,702 2014 425,000 17,410,000 28,515,000 39,435,000 2,155,000 3,754,702 2013 630,000 19,990,000 29,995,000 35,705,000 2,275,000 3,754,702 2012 835,000 22,310,000 31,420,000 42,650,000 3,180,000 3,754,702 2011 1,015,000 24,380,000 32,790,000 47,085,000 4,350,000 3,756,175

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

(1) See the Schedule of Demographic and Economic Statistics (Table 16) for personal income and population data. (2) With the implementation of GASB 88, notes from direct borrowing were split out.

Source: City of St. Cloud Financial Records

209 Table 11

Business-Type Activities Notes Certificates from Total Percentage of Revenue Direct Loans Capital Primary of Personal Per Participation Bonds Borrowing(2) Payable Lease Government Income(1) Capita(1)

$ - $ 39,042,277 $ 65,708,138 $ - $ 449,017 $ 188,611,214 5.80% $2,752 - 106,190,842 - - 602,030 200,945,257 6.30% 2,932 - 112,529,052 - - 770,404 210,580,874 7.03% 3,088 - 109,357,592 - - 934,190 231,867,842 8.15% 3,415 380,000 109,257,232 - - 1,093,539 221,623,616 7.94% 3,291 745,000 87,054,209 - - 1,228,165 191,657,076 7.09% 2,860 1,095,000 90,865,183 - - 1,222,996 184,877,881 7.19% 2,782 1,430,000 96,126,209 - 5,124 1,325,856 191,236,891 7.55% 2,888 1,750,000 98,609,960 - 15,077 1,423,333 205,948,072 8.18% 3,130 2,040,000 104,575,961 - 24,651 1,515,706 221,532,493 9.27% 3,375

210 CITY OF ST. CLOUD, MINNESOTA

RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years

General Bonded Debt Outstanding General General Certificates Sales Tax General Obligation Obligation Fiscal of Revenue Obligation Improvement Tax Increment Year Indebtedness Bonds Bonds Bonds Bonds

2020 $ 5,816,298 $ 10,506,271 $ 30,382,735 $ 31,591,776 $ 1,360,000 2019 6,706,515 12,442,823 32,934,339 36,814,006 1,500,000 2018 7,566,732 14,019,375 30,039,237 40,271,372 1,630,000 2017 8,386,949 15,545,927 49,383,112 42,745,370 1,760,000 2016 8,727,166 16,932,478 26,022,166 53,561,333 1,895,000 2015 215,000 24,570,000 26,975,000 45,090,000 2,025,000 2014 425,000 17,410,000 28,515,000 39,435,000 2,155,000 2013 630,000 19,990,000 29,995,000 35,705,000 2,275,000 2012 835,000 22,310,000 31,420,000 42,650,000 3,180,000 2011 1,015,000 24,380,000 32,790,000 47,085,000 4,350,000

Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements.

(1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property (Table 7) for property value data. (2) Personal income and population data can be found in the Schedule of Demographic and Economic statistics (Table 16).

Source: City of St. Cloud Financial Records

211 Table 12

General Bonded Debt Outstanding Percentage General Less: Net of Actual Obligation Available General Taxable Revenue in Debt Bonded Debt Value of Per Bonds Total Service Outstanding Property (1) Capita(2)

$ 102,495,511 $ 182,152,591 $ 3,505,167 $ 178,647,424 3.92% 2,658$ 103,599,287 193,996,970 3,498,823 190,498,147 4.35% 2,831 109,610,846 203,137,562 4,601,401 198,536,161 4.79% 2,978 106,122,736 223,944,094 26,916,364 197,027,730 5.46% 3,299 106,010,425 213,148,568 9,580,701 203,567,867 5.40% 3,165 87,054,209 185,929,209 3,017,764 182,911,445 4.85% 2,775 90,865,183 178,805,183 3,121,642 175,683,541 4.85% 2,690 96,126,209 184,721,209 3,156,991 181,564,218 4.90% 2,790 98,609,960 199,004,960 3,436,858 195,568,102 5.04% 3,024 104,575,961 214,195,961 3,418,736 210,777,225 5.20% 3,264

212 CITY OF ST. CLOUD, MINNESOTA Table 13 COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2020

City's Share Governmental Unit Debt Outstanding (1) Percent Amount School Districts: School District 47 $ 66,640,000 4.11% $ 2,738,904 School District 742 174,274,167 54.44% 94,874,857 Counties: Stearns County 11,180,000 22.69% 2,536,742 Benton County 4,695,000 10.42% 489,219 Sherburne County 41,505,000 2.66% 1,104,033

Subtotal, overlapping debt 101,743,755 City of St. Cloud direct debt 83,411,782

Total Direct and Overlapping Debt $ 185,155,537

(1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the city's boundaries and dividing it by the county's total taxable assessed value.

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the city of St. Cloud. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government.

Sources: Assessed value data used to estimate applicable percentages provided by the County Board of Equalization and Assessment. Debt outstanding data provided by individual governmental units.

213 CITY OF ST. CLOUD, MINNESOTA

LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years

2020 2019 2018 2017

Debt limit $ 139,528,500 $ 133,933,356 $ 127,323,792 $ 123,015,510

Total net debt applicable to limit 30,088,946 33,013,009 31,320,094 29,555,644

Legal debt margin $ 109,439,554 $ 100,920,347 $ 96,003,698 $ 93,459,866

Total net debt applicable to the limit as a percentage of debt limit 21.56% 24.65% 24.60% 24.03%

Legal Debt Margin Calculation for Fiscal Year 2020

Estimated Market Value $ 4,650,950,000

Debt limit (3% of total assessed value) 139,528,500 Debt applicable to limit: General obligation certificates of indebtedness 5,425,000 General obligation bonds 27,255,000 Less: Amount set aside for repayment of general obligation debt (2,591,054)

Total net debt applicable to limit 30,088,946

Legal debt margin $ 109,439,554

Note: Under state finance law, the City of St. Cloud's general obligation debt should not exceed three percent of total assessed tax capacity. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Source: City of St. Cloud Financial Records

214 Table 14

2016 2015 2014 2013 2012 2011

$ 118,381,818 $ 115,098,711 $ 73,728,820 $ 75,434,400 $ 78,999,012 $ 82,426,536

30,584,709 24,217,847 25,876,214 27,535,354 28,903,631 30,500,320

$ 87,797,109 $ 90,880,864 $ 47,852,606 $ 47,899,046 $ 50,095,381 $ 51,926,216

25.84% 21.04% 35.10% 36.50% 36.59% 37.00%

215 CITY OF ST. CLOUD, MINNESOTA

PLEDGED-REVENUE COVERAGE Last Ten Fiscal Years

Revenue Bonds Less: Net Fiscal Gross Operating Available Debt Service Coverage Year Revenue (1) Expenses (2) Revenue Principal Interest (percentage)

2020 $ 29,242,086 $ 16,849,298 $ 12,392,788 7,106,000$ 2,576,879$ 127.99 % 2019 30,857,876 19,628,688 11,229,188 7,609,427 2,728,422 108.62 % 2018 30,109,112 16,894,890 13,214,222 8,686,477 2,816,988 114.87 % 2017 30,149,350 17,006,365 13,142,985 10,616,643 2,511,845 100.11 % 2016 28,974,966 16,071,943 12,903,023 6,095,543 2,805,301 144.96 % 2015 25,435,648 14,575,510 10,860,138 5,648,539 2,646,368 130.93 % 2014 27,433,499 14,731,070 12,702,429 5,261,026 2,626,219 161.05 % 2013 24,677,440 13,170,607 11,506,833 7,647,999 2,806,367 110.07 % 2012 26,235,492 13,050,074 13,185,418 7,452,601 2,612,833 131.00 % 2011 24,360,530 12,358,670 12,001,860 5,195,452 2,723,111 151.57 %

Sales Tax Revenue Bonds Fiscal Local Debt Service Coverage Year Sales Tax Principal Interest (percentage)

2020 $ 2,152,923 $ 1,730,000 $ 419,693 100.15 % 2019 1,939,169 1,370,000 486,993 104.43 % 2018 1,709,300 1,320,000 541,244 91.84 % 2017 1,619,000 1,180,000 586,425 91.65 % 2016 1,645,730 3,150,000 615,785 43.70 % 2015 3,729,700 2,855,000 687,589 105.28 % 2014 3,494,800 2,580,000 748,450 105.00 % 2013 3,328,500 2,320,000 846,431 105.12 % 2012 3,166,000 2,070,000 934,231 105.38 % 2011 3,003,800 1,840,000 1,012,431 105.31 %

Note: Details regarding the government's outstanding debt can be found in the notes to the financial statements. (1) Water, Wastewater, Hydroelectric, Street Light Utility, Parking and River's Edge Convention Center. (2) Excludes depreciation and non-operating expenses.

Source: City of St. Cloud Financial Records

216 Table 15

Improvement Bonds Special Assessment Debt Service Coverage Collections Principal Interest (percentage)

$ 2,853,574 $ 4,900,000 $ 1,109,931 47.48 % 3,220,163 5,655,000 1,176,685 47.14 % 3,319,752 6,565,000 1,251,673 42.47 % 4,551,797 10,575,000 1,451,283 37.85 % 5,188,442 3,995,000 1,571,229 93.21 % 6,024,894 4,600,000 1,249,053 103.01 % 5,925,299 5,550,000 1,146,175 88.49 % 4,507,486 6,620,000 1,302,596 56.89 % 4,155,687 8,755,000 1,656,099 39.92 % 4,699,673 9,500,000 1,933,478 41.10 %

217 CITY OF ST. CLOUD, MINNESOTA Table 16 DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years

Education Total Per Capita Level in Years Year End Fiscal Personal Personal Median of Formal School Unemployment Year Population(1) Income Income(2) Age Schooling Enrollment(3) Rate(4)

2020 * 68,524 $ 3,250,504,464 47,436$ NA NA 11,520 5.6% 2019 68,524 3,187,256,812 46,513 NA NA 12,005 3.5% 2018 68,202 2,993,658,588 43,894 NA NA 11,941 3.2% 2017 67,889 2,846,653,659 41,931 NA NA 12,081 2.6% 2016 67,344 2,789,994,576 41,429 NA NA 12,551 3.8% 2015 67,010 2,703,987,520 40,352 NA NA 12,663 3.4% 2014 66,462 2,571,680,628 38,694 NA NA 12,583 3.6% 2013 66,219 2,531,949,684 38,236 NA NA 12,331 4.5% 2012 65,801 2,517,085,653 38,253 NA NA 12,244 5.6% 2011 65,633 2,388,516,136 36,392 NA NA 12,177 5.9%

Data sources (1) Bureau of the Census/State Demographer's Office/or City Planning Department (2) US Department of Commerce - Bureau of Economic Analysis (available in November for prior year) (3) School District Number 742 (includes public and parochial) (4) Minnesota Department of Employment and Economic Development *Most recent data from the MN State Demographers N/A = Information not available

Note: Population is for the last quarter of the calendar year. Personal income information is a total for the year. Unemployment rate information is an adjusted yearly average. School enrollment is based on the census on December 31st.

218 CITY OF ST. CLOUD, MINNESOTA Table 17 PRINCIPAL EMPLOYERS Current Year and Nine Years Ago

2020 2011 Percentage Percentage of Total City of Total City Taxpayer Employees Rank Employment Employees Rank Employment

*St. Cloud Hospital/CentraCare Clinic/ St. Benedict's Center/Benet Place 7,854 1 22.31% 4,110 1 10.99%

State of Minnesota 2,259 2 6.42% 2,036 2 5.44%

St. Cloud Veterans Administration 1,767 3 5.02% 1,360 3 3.64%

*St. Cloud Area School District 742 1,092 4 3.10% 828 5 2.21%

Fulfillment Distribution Center 784 5 2.23%

**Stearns County 732 6 2.08%

Capital One 689 7 1.96%

New Flyer of America, Inc. 677 8 1.92% 530 6 1.42%

*Coborn's Inc. 673 9 1.91%

Anderson Trucking Service, Inc. 622 10 1.77%

Electrolux Home Products 1,259 4 3.37%

Wolters Kluwer Financial Services 525 7 1.40%

ING Direct 495 8 1.32%

Bluestem (Welch Fingerhut) 484 9 1.29%

City of St. Cloud 438 10 1.17%

Totals 17,149 48.71% 12,065 32.25%

*Business has significant part-time staff in addition to the full-time employee count indicated. **Does not include Stearns County full-time employees now working at county satellite offices outside of the City of St. Cloud.

Source: MN Department of Employment and Economic Development and City EDA Office

219 CITY OF ST. CLOUD, MINNESOTA

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years

2020 2019 2018

Function GOVERNMENTAL General government 57.20 54.20 52.20 Economic development 2.30 2.30 2.30 Public safety Police 137.00 137.00 135.00 Fire 71.00 71.00 71.00 Health/inspection 13.00 13.00 13.00 Building safety 12.00 12.00 12.00 Public works Engineering and street maintenance 39.75 38.75 38.75 Airport 6.00 7.00 7.00 Culture and recreation Park and recreation 18.75 20.75 20.75 Aging services 7.25 8.25 8.25 BUSINESS TYPE Water utility 36.50 35.83 34.83 Wastewater utility 21.32 21.49 21.49 Stormwater utility 3.68 4.18 4.18 Street light utility 1.00 1.00 1.00 Parking system 5.25 6.25 6.25 Refuse service 20.00 20.00 20.00 Municipal athletic complex 4.00 4.00 4.00 River's edge convention center 9.00 11.00 10.00

Total 465.00 468.00 462.00

Source: City of St. Cloud Human Resources and Finance Offices.

220 Table 18

2017 2016 2015 2014 2013 2012 2011

54.20 52.45 52.45 59.70 60.20 58.75 58.50 2.30 2.30 2.30 2.30 1.80 1.75 3.00

132.00 133.00 130.00 125.00 123.00 125.00 127.00 69.00 71.00 72.00 70.00 70.00 71.00 71.00 13.00 11.00 11.00 10.00 10.00 9.00 22.00 12.00 12.00 12.00 12.00 12.00 12.00 0.00

42.35 38.00 37.00 38.00 40.25 42.50 42.50 7.00 7.00 7.00 4.50 4.50 4.50 4.50

19.25 19.75 19.75 19.75 18.00 17.75 17.75 8.25 9.05 9.05 0.00 0.00 0.00 0.00

32.74 34.83 34.83 34.50 34.50 34.50 34.50 19.50 17.83 17.83 17.50 17.50 17.50 17.50 4.41 4.90 5.09 4.00 4.00 4.00 4.00 1.25 1.50 1.00 1.50 1.00 1.00 1.00 5.75 5.00 5.00 5.00 4.50 4.50 4.50 20.50 21.00 21.00 20.75 19.75 20.50 22.25 4.00 4.00 4.00 4.00 4.00 4.00 4.00 10.00 10.00 9.00 9.00 7.00 7.00 7.00

457.50 454.61 450.30 437.50 432.00 435.25 441.00

221 CITY OF ST. CLOUD, MINNESOTA

OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years

2020 2019 2018

FUNCTION PUBLIC SAFETY Police Part I Offenses (ie. serious crime- murder, rape, robbery, assault, theft, arson) 3,377 2,760 2,859 Part II Offenses (ie. vandalism, liquor laws, DUI, narcotics, other assaults) 3,367 3,590 3,814 Fire Alarm incidents 6,960 6,883 6,673 Building Safety Residential building permits 141 92 123 Multiple dwellings building permits 4 2 2 Commercial, educational, signs building permi 328 439 412 Residential repairs and garages permits 1,140 1,123 864 PUBLIC WORKS Excavation permits 171 192 197 CULTURE AND RECREATION Pool attendance *0 13,347 13,995 BUSINESS TYPE Water Accounts 18,174 18,042 17,936 Average daily consumption (millions of gallons) 7.32 7.67 8.13 Wastewater Accounts 18,044 17,918 17,875 Average daily sewage treatment (millions of gallons) 10.05 10.30 10.10 Stormwater and Street Light Accounts 20,662 20,643 20,059

222 Table 19

2017 2016 2015 2014 2013 2012 2011

3,044 3,086 3,519 2,730 3,084 2,526 2,816

4,040 3,969 3,879 3,055 3,501 3,487 4,343

6,186 5,905 6,035 5,170 4,687 4,415 4,298

112 102 100 93 54 50 26 0 2 3 2 2 5 1 401 528 500 436 464 474 473 985 988 1,070 1,103 1,167 1,444 1,788

238 248 295 234 215 203 159

12,660 15,507 18,403 14,970 16,233 22,262 18,163

17,843 17,739 17,681 17,480 17,479 17,415 17,381

8.13 7.49 7.49 7.45 7.45 7.65 7.45

17,822 17,716 17,657 17,457 17,456 17,397 17,365

10.10 9.88 9.80 10.80 10.80 9.36 10.80

20,611 20,661 20,633 20,640 20,402 20,721 20,721

(Continued)

223 CITY OF ST. CLOUD, MINNESOTA

OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years

2020 2019 2018

FUNCTION (CONTINUED) BUSINESS TYPE (CONTINUED) Hydroelectric utility Kilowatt hours produced 51,900,000 55,234,145 51,166,151 Parking system On-street metered parking capacity 586 580 579 Off-street parking capacity 942 942 960 Off-street parking ramp capacity 2,028 2,030 2,021 Refuse service Number of accounts 16,327 16,212 16,107 Refuse collected (tons) 10,801 9,747 9,284 Yard waste collected (tons) 1,455 1,398 1,382 Recyclables collected (tons) 3,713 3,501 3,679 Municipal athletic complex Baseball games played *81 291 260 Golf rounds played *13,891 12,603 9,400 Ice hours billed *2,815 3,558 3,626 River's edge convention center Events held *85 351 314

Notes: Indicators are not available for the general government function. *Numbers are adjusted to reflect impact of COVID.

Sources: Various government departments

224 Table 19 (Continued)

2017 2016 2015 2014 2013 2012 2011

56,667,785 56,691,295 46,818,705 48,819,786 43,689,460 41,347,915 51,588,800

577 566 561 574 584 577 568 960 983 925 1,067 1,107 1,107 1,103 2,012 2,034 1,676 1,672 1,676 1,676 1,676

16,122 16,058 16,016 15,981 15,981 15,940 15,954 9,107 8,763 8,372 8,247 8,005 7,836 8,047 1,231 1,410 1,488 1,652 1,602 1,488 1,674 3,724 3,811 3,861 3,985 3,400 3,294 3,413

282 307 325 293 322 422 357 10,700 10,342 9,825 9,654 9,925 11,281 8,640 3,691 3,452 3,350 3,204 3,148 3,013 3,113

389 332 362 359 351 337 331

225 CITY OF ST. CLOUD, MINNESOTA

CAPITAL ASSET STATISTICS BY FUNCTION Last Ten Fiscal Years

2020 2019 2018

FUNCTION PUBLIC SAFETY Police Stations 1 1 1 Vehicles 100 91 88 Fire Stations 5 5 5 Pieces of equipment 15 15 15 PUBLIC WORKS Streets paved (miles) 347.90 347.56 347.16 Streets unpaved (miles) 1.62 1.62 1.62 Alleys (miles) 42.36 42.36 42.36 Sidewalks (miles) 229.37 228.27 226.29 CULTURE AND RECREATION Parks Neighborhood and mini parks developed (acres) 240.49 240.00 240.00 Community and regional parks developed (acres) 325.92 326.00 326.00 Wetlands, natural areas and undeveloped (acres) 1,116.06 1,116.00 1,116.00 Swimming/wading pools 7 7 7 BUSINESS TYPE Water Water mains (miles) 303.82 303.70 303.52 Storage units 6 7 6 Wastewater Sanitary sewers (miles) 295.62 294.69 293.31 Stormwater Storm sewers (miles) 191.99 190.96 188.86 Refuse service Refuse trucks 8 9 8 Recycling trucks 6 5 4 Municipal athletic complex Ice arena (indoor) 2 2 2 Golf courses 1 1 1 Ball fields 2 2 2 River's edge convention center Meeting rooms 19 19 19 Rentable exhibit/ballroom space (square feet) 73,620 73,620 73,620

Note: No capital asset indicators are available for the general government function.

Sources: Various city departments

226 Table 20

2017 2016 2015 2014 2013 2012 2011

1 1 1 1 1 1 1 85 85 77 77 80 76 74

5 5 5 5 5 5 5 15 15 15 19 19 18 15

346.23 345.19 345.19 344.56 344.56 344.56 345.25 1.62 1.62 1.62 1.62 1.62 1.62 1.62 42.36 42.36 42.36 42.36 42.36 42.36 42.36 212.68 211.79 209.96 207.94 207.94 207.47 205.35

241.00 243.00 243.00 243.00 242.90 242.90 249.00 326.00 316.00 316.00 273.00 273.35 265.15 265.00 1,036.00 1,047.00 1,041.00 1,006.00 971.29 971.29 981.00 7 7 7 7 7 7 7

302.55 301.34 301.10 300.24 300.24 294.03 293.27 6 5 5 5 5 5 5

292.15 291.16 290.71 290.43 290.43 288.27 287.68

186.52 186.08 185.12 183.44 183.44 141.60 140.13

8 8 8 7 7 7 7 4 4 4 4 4 9 9

2 2 2 2 2 2 2 1 1 1 1 1 1 1 2 2 2 2 2 2 2

19 19 19 19 19 19 19 73,620 73,620 73,620 73,620 73,620 73,620 42,000

227