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Home My WebLink About2025/07/14 - ADMIN - Agenda Packets - City Council - Study Session AGENDA JULY 14, 2025 6:00 p.m. Study session – Community Room Discussion items 1. Review of 2024 Annual Comprehensive Financial Report 2. 2025 Legislative session wrap-up Written report 3. Arrive + Thrive update – Wards 1, 2 and 3 Members of the public can attend St. Louis Park Economic Development Authority and city council meetings in person. At regular city council meetings, members of the public may comment on any item on the agenda by attending the meeting in-person or by submitting written comments to info@stlouisparkmn.gov by noon the day of the meeting. Official minutes of meetings are available on the city website once approved. Watch St. Louis Park Economic Development Authority or regular city council meetings live at bit.ly/watchslpcouncil or at www.parktv.org, or on local cable (Comcast SD channel 14/HD channel 798). Recordings of the meetings are available to watch on the city's YouTube channel at www.youtube.com/@slpcable, usually within 24 hours of the meeting’s end. City council study sessions are not broadcast. Generally, it is not council practice to receive public comment during study sessions. The council chambers are equipped with Hearing Loop equipment and headsets are available to borrow. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Study session Meeting date: July 14, 2025 Discussion item: 1 Executive Summary Title: Review of 2024 Annual Comprehensive Financial Report Recommended action: None at this time. The report summarizes the results of the Annual Comprehensive Financial Report (ACFR) for the year ended Dec. 31, 2024. The city council will review the audit and discuss its results. The council will be asked to formally adopt the audit by resolution on July 21, 2025. Policy consideration: What additional information may the council want finance to provide related to the 2024 Annual Comprehensive Financial Report? Summary: The city is required to have an independent (external) audit each year, through which the audit firm issues an opinion on the city’s financial statements. The city’s ACFR received an unmodified audit opinion for the Dec. 31, 2024 report. An “unmodified” opinion from the auditor means that they are of the opinion that the city’s financial statements present fairly, in all material respects, and are in accordance with the applicable financial reporting framework for the Dec. 31, 2024 ACFR. In keeping with the previous 40 years, the city has submitted the ACFR to the Government Finance Officers Association for consideration of the Certificate of Achievement award for financial reporting. We anticipate the submission will be accepted and the city will be, for the 41st consecutive year, granted the award. Rebecca Petersen from Redpath and Company will present the financial details. Because the audit is public at the time it is finalized, it has been proactively added to the city’s website on the finance department’s financial reports page: 2024 Annual Comprehensive Financial Report. Financial or budget considerations: This report shows the City of St. Louis Park continues to remain in strong financial condition. Strategic priority consideration: Not applicable. Supporting documents: 2024 Annual Comprehensive Financial Report Minnesota Legal Compliance Report Independent Auditor’s Report on Internal Control Over Financial Reporting and On Compliance Communication With Those Charged With Governance Prepared by: Joe Olson, deputy finance director Reviewed by: Amelia Cruver, finance director Approved by: Kim Keller, city manager Study session meeting of July 14, 2025 (Item No. 1) Page 2 Title: Review of 2024 Annual Comprehensive Financial Report Discussion Background: Each year, the city is required to have an audit on the city’s financials, internal controls, and a single audit of federal grant or aid dollars (if applicable, the single audit is an audit of federal funds and is only done when the city has expended over $750,000 in spending of federal funds in a fiscal year). The completion of the audit will result in the Annual Comprehensive Financial Report (ACFR). This report provides transparency to the public regarding the financial well-being of the City of St. Louis Park. The PowerPoint presentation by staff provides a high level view of the city’s financial results and important data tables and trends. The PowerPoint presentation by Redpath, the city’s auditors, provides the results of the annual audit and context for their unmodified opinion. The city’s single audit will be reported to the city council and is due to the federal government on Sept. 30, 2025. The city’s finance team is currently working on the Popular Annual Financial Report (PAFR); this report is due on July 31, 2025 to the Government Finance Officers Association (GFOA). The city received the Popular Annual Financial Reporting Award in the first year the city completed the PAFR. 2024 Annual Comprehensive Financial Report (ACFR): The Annual Comprehensive Financial Report (ACFR) is located on our website under government/finance/financial reports. Next Steps: This is an informational presentation after which our auditor and finance team will be available if there are any questions. The city council is asked to communicate any detailed or technically specific questions financial questions ahead of the meeting so that finance staff may review and gather information in preparation. On the upcoming city council meeting on July 21, 2025, an agenda item is scheduled for a vote to approve acceptance of the audit results. Annual Comprehensive Financial Report for the fiscal year ended Dec. 31, 2024 Kim Keller – City Manager Prepared by: Finance Division Member of the Government Finance Officers’ Association of the United States and Canada Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 3 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 4 CITY OF ST. LOUIS PARK, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED December 31, 2024 Kim Keller – City Manager Prepared by: Finance Division Member of the Government Finance Officers’ Association Of the United States and Canada Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 5 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 6 CITY OF ST. LOUIS PARK , MINNESOTA TABLE OF CONTENTS Page Reference No. I. INTRODUCTORY SECTION Letter of Transmittal 3 Certificate of Achievement 9 Services Chart 11 Officials of the City of St. Louis Park 13 II. FINANCIAL SECTION Independent Auditor's Report 17 Management's Discussion and Analysis 21 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 38 Statement of Activities Statement 2 39 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 40 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Statement 4 42 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement 5 44 Statement of Net Position - Proprietary Funds Statement 6 45 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds Statement 7 47 Statement of Cash Flows - Proprietary Funds Statement 8 48 Notes to Financial Statements 51 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 9 94 Budgetary Comparison Schedule - Housing Rehabilitation Fund Statement 10 95 Schedule of Changes in Total OPEB Liability and Related Ratios Statement 11 96 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 97 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 98 Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 14 99 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 100 Notes to RSI 101 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 7 CITY OF ST. LOUIS PARK , MINNESOTA TABLE OF CONTENTS Page Reference No. Combining Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 16 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Statement 17 113 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget to Actual: Cable Television Fund Statement 18 114 Community Development Fund Statement 19 115 Special Service Districts Fund Statement 20 116 Affordable Housing Trust Fund Statement 21 117 Climate Investment Fund Statement 22 118 Development EDA Fund Statement 23 119 Internal Service Funds: Combining Statement of Net Position Statement 24 122 Combining Statement of Revenues, Expenses and Changes in Fund Net Position Statement 25 123 Combining Statement of Cash Flows Statement 26 124 III. STATISTICAL SECTION (UNAUDITED) Financial Trends: Net Position by Component Table 1 130 Changes in Net Position Table 2 132 Governmental Activities Tax Revenues by Source Table 3 137 Fund Balances of Governmental Funds Table 4 138 Changes in Fund Balances of Governmental Funds Table 5 140 Revenue Capacity: Assessed Value/Tax Capacity Value and Estimated Market Value of all Taxable Property Table 6 142 Property Tax Rates - Direct and Overlapping Governments Table 7 144 Principal Property Taxpayers Table 8 146 Property Tax Levies and Collections Table 9 147 Debt Capacity: Ratios of Outstanding Debt By Type Table 10 148 Ratios of General Bonded Debt Outstanding Table 11 149 Direct and Overlapping Governmental Activities Debt Table 12 151 Legal Debt Margin Information Table 13 152 Pledged Revenue Bond Coverage Table 14 154 Demographic and Economic Information: Demographic Statistics Table 15 155 Principal Employers Table 16 157 Operating Information: Full-Time Equivalent Employees by Function Table 17 158 Operating Indicators by Function Table 18 160 Capital Asset Statistics by Function Table 19 161 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 8 I. INTRODUCTORY SECTION Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 9 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 10 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 June 25, 2025 Government’s citizens, as well as Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Minnesota statutes require all cities to issue an annual report on its financial position and activity prepared in accordance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants, or the Office of the State Auditor. Pursuant to that requirement, we hereby issue the annual comprehensive financial report (ACFR) of the City of St. Louis Park for the fiscal year ended December 31, 2024. This report consists of management’s representations concerning the finances of the City of St. Louis Park. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of St. Louis Park established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation for the City of St. Louis Park’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of St. Louis Park’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of St. Louis Park’s financial statements have been audited by Redpath and Company LLC., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of St. Louis Park for the fiscal year ended December 31, 2024, are free of any material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of St. Louis Park’s financial statements for the fiscal year ended December 31, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 11 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. Profile of the Government The City of St. Louis Park, established in 1886, is a first ring community located immediately west of Minneapolis. Thanks to its convenient location, St. Louis Park combines all the cultural amenities of a large metropolitan area with small town friendliness. The City of St. Louis Park currently occupies a land area of 10.8 square miles and serves a population of 49,321. The City of St. Louis Park is empowered to levy a property tax on both real and personal properties located within its boundaries. While it also is empowered by state statutes to extend its corporate limits by annexation, St. Louis Park is a completely developed community and is bordered on all sides by other incorporated communities. St. Louis Park operates under the council/manager form of government. Policy-making and legislative authority are vested in a City Council consisting of a mayor, two at-large council members, and four ward council members. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies and ordinances of the council, for overseeing the day-to-day operations of the City government, and for appointing the heads of the various departments. The council is elected on a non-partisan basis. Council members serve four- year staggered terms. The City of St. Louis Park provides a full range of services, including police and fire protection; redevelopment, the construction and maintenance of highways, streets, and other infrastructure; water, sewer, storm water, and refuse services, as well as recreational activities and cultural events. The annual budget serves as the foundation for the City of St. Louis Park’s financial planning and control. All departments and agencies of the City of St. Louis Park submit requests for appropriation to the City Manager in June of each year. The City Manager uses these requests as the starting point for developing a proposed budget. The City Manager then presents this proposed budget to the council for review prior to adoption of a preliminary tax levy by September 30. The council is required to hold a public hearing on the proposed budget and to adopt a final budget no later than December 28. The appropriated budget is prepared by fund, (e.g. General), function (e.g., public safety), and department (e.g., police). Department directors may make transfers of appropriation within a department. Transfers of appropriations between funds, however, require the approval of the City Council. Budget to actual comparisons are provided in this report for the general fund for which an Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 12 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 appropriated annual budget has been adopted. These comparisons are presented as part of the basic financial statements for the governmental funds. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of St. Louis Park operates. Local economy The City of St. Louis Park currently enjoys a durable economic environment and local indicators point to continued stability versus other communities in the Twin City Metro Area. The City of St. Louis Park has a well-diversified tax base, with a sizeable full valuation that includes retail, manufacturing, and health care components, as well as diverse housing stock. Redevelopment and Development efforts remain very strong in St Louis Park. Redevelopment/Development The City of St. Louis Park is dedicated to supporting a diverse mix of housing and neighborhood- focused development. As the community grows, the city remains committed to expanding creative and inclusive housing options, preserving existing affordable housing, and encouraging the reinvestment and revitalization of neighborhood businesses and services to meet the needs of current and future residents. Over the past seven years, the city has seen significant redevelopment, resulting in new projects that include a mix of market-rate and affordable housing, along with commercial, retail, and service spaces that enhance neighborhood livability and support economic vitality. To help realize these goals, the city has strategically leveraged tools such as tax increment financing and its local housing trust fund to advance key community and economic development priorities. Some of the larger projects completed in the past year include: Union Park Flats Union Park Flats is a three-story, 60-unit affordable housing community offering studio, one-, two-, and three-bedroom apartments for households earning between 30% and 60% of the area median income (AMI). Certified under the Enterprise Green Communities program for sustainable design, the development features underground parking and a wide range of resident amenities. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 13 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 Mera Mera is a six-story, 233-unit luxury housing development that includes 47 apartments reserved for households earning up to 50% of the area median income. Residents enjoy high-end amenities including structured parking, a rooftop deck, courtyard with pool and spa, outdoor pickleball courts, and a dog run. The project incorporates several sustainable design elements, such as a modern underground stormwater management system. Zelia on Seven Located adjacent to the future Wooddale Avenue Station on the METRO Green Line Extension, Zelia on Seven is a five-story, mixed-income community offering 217 units. Of these, 22 are affordable at 50% AMI and 65 at 60% AMI. The development includes eight live/work units and a wide array of amenities, including indoor and outdoor common areas, public art, a one-acre urban forest, and a variety of sustainable building features. Arbor Court Arbor Court is a four-story, 114-unit fully affordable apartment community built on the site of the former Aldersgate Methodist Church. The development offers a mix of one-, two-, and three- bedroom units, including five units at 30% AMI, five at 50% AMI, and 104 at 60% AMI. Amenities include underground and surface parking as well as thoughtfully designed resident spaces. The city also partners with Westopolis, our Convention and Visitors Bureau, to showcase St. Louis Park as a vibrant destination for both business and leisure. Through strategic marketing and outreach, this collaboration draws visitors, events, and new activity to the area—boosting local businesses and energizing the community’s economy. Long-term Financial Planning The City maintains a 10 year Long Range Financial Management Plan that incorporates anticipated revenues, expenditures, capital outlay, and tax impacts for all relevant funds. The plan anticipates opportunities or challenges, allows for changes to then be made, with the goal of achieving long- term sustainability. The plan is used in conjunction with the annual budget process and Capital Improvement Plan, which then allows the City Council to evaluate various budget decisions prior to adoption. This plan has proven its value by playing a significant role in maintaining the City’s AAA bond rating from Standard & Poor’s, which assists in keeping the costs of borrowing for the City of St. Louis Park at a low rate. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 14 St. Louis Park City Hall • 5005 Minnetonka Blvd., St. Louis Park, MN 55416 www.stlouispark.org • Phone: 952.924.2500 • TTY: 952.924.2518 Awards The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of St. Louis Park for its annual comprehensive financial report (ACFR) for the fiscal year ended December 31, 2023. This was the 41st consecutive year that the government received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report (ACFR). The report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report (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. Acknowledgements The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Division and other key City of St. Louis Park personnel. We would like to express our appreciation to all members of the organization who assisted and contributed to the preparation of the report. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of St. Louis Park’s finances. Respectfully submitted, Kim Keller Amelia Cruver City Manager Finance Director Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 15 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 16 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of St. Louis Park Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2023 Executive Director/CEO Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 17 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 18 City manager Community development Engineering Fire department Police department Administ r a t i v e services Bu i l d i n g an d e n e r g y Parks and rec r e a t i o n Com m u n i c a t i o n s and tec h n o l o g y De p u t y c i t y m a n a g e r Community City council P u b l i c w o r k s City manager City council Community Ci t y m a n a g e r Ci t y c o u n c i l Co m m u n i t y Ci t y m a n a g e r Ci t y c o u n c i l Co m m u n i t y Administrative services •City clerk ͻ &ŝŶĂŶĐĞ;ŝŶĐůƵĚĞƐĂƐƐĞƐƐŝŶŐ͕ƵƟůŝƚǇďŝůůŝŶŐͿ • Human resources • Racial equity and inclusion Building and energy ͻ ŽŶƐƚƌƵĐƟŽŶĐŽĚĞƐ • Property maintenance/licensing ͻ ^ƵƐƚĂŝŶĂďŝůŝƚǇ Communications and technology ͻ ŽŵŵƵŶŝĐĂƟŽŶƐ ͻ /ŶĨŽƌŵĂƟŽŶƚĞĐŚŶŽůŽŐǇ • ParkTV Community development •Housing • Economic development/redevelopment • Planning and zoning Engineering ͻ ŽŶƐƚƌƵĐƟŽŶ • Engineering services ͻdƌĂŶƐƉŽƌƚĂƟŽŶ Fire department • Emergency response • Emergency management ͻ D^ͬĂůƚĞƌŶĂƟǀĞƌĞƐƉŽŶƐĞŵĞĚŝĐ ͻ WƌĞǀĞŶƟŽŶ Parks and recreation ͻ &ĂĐŝůŝƟĞƐŵĂŝŶƚĞŶĂŶĐĞ;ŝŶĐůƵĚĞƐĂůů ĐŝƚǇĨĂĐŝůŝƟĞƐͿ • Parks maintenance ;ŝŶĐůƵĚĞƐŇĞĞƚ͕ŶĂƚƵƌĂůƌĞƐŽƵƌĐĞƐͿ ͻ ZĞĐƌĞĂƟŽŶƉƌŽŐƌĂŵŵŝŶŐ ;ŝŶĐůƵĚĞƐtĞƐƚǁŽŽĚ,ŝůůƐEĂƚƵƌĞĞŶƚĞƌͿ Police department ͻ ĚŵŝŶŝƐƚƌĂƟŽŶ ͻ /ŶǀĞƐƟŐĂƟŽŶƐ •Patrol Public works ͻ ĚŵŝŶŝƐƚƌĂƟŽŶͬĂƐƐĞƚŵĂŶĂŐĞŵĞŶƚ • Solid waste • Streets ͻ hƟůŝƟĞƐ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 19 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 20 OFFICIALS OF THE CITY OF ST. LOUIS PARK Council Nadia Mohamed Mayor EDA Commissioner Term Expires 01/2028 Yolanda Farris At-Large A Councilmember EDA Treasurer Term Expires 01/2028 Paul Baudhuin At-Large B Councilmember EDA Commissioner Term Expires 01/2028 Margaret Rog Ward 1 Councilmember EDA Commissioner Term Expires 01/2026 Sue Budd Ward 3 Councilmember EDA Vice President Term Expires 1/2026 Lynette Dumalag Ward 2 Councilmember EDA President Term Expires 01/2026 Tim Brausen Ward 4 Councilmember EDA Commissioner Term Expires 1/2026 Executive Staff Kim Keller, City Manager Cindy Walsh, Deputy City Manager Jay Hall, Public Works Director Jason West, Parks and Recreation Director Bryan Kruelle, Police Chief Mike Scott, Interim Fire Chief Karen Barton, Community Development Director Brian Hoffman, Building & Inspections Director Amelia Cruver, Finance Director Debra Heiser, Engineering Director Jacque Smith, IR & Communications Director Rita Vorpahl, Human Resources Director Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 21 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 22 II. FINANCIAL SECTION Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 23 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 24 400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of December 31, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of St. Louis Park, Minnesota and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 25 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of St. Louis Park, Minnesota’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of St. Louis Park, Minnesota's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 26 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of St. Louis Park, Minnesota's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and the schedules of OPEB and pension information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of St. Louis Park, Minnesota's basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 27 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 25, 2025 on our consideration of the City of St. Louis Park, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of St. Louis Park, Minnesota's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of St. Louis Park, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 25, 2025 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 28 City of St. Louis Park Management’s Discussion and Analysis As management of the City of St. Louis Park, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which starts on page 3 of this report. Financial Highlights The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $236,454,685 (net position). Of this amount, $68,607,709 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors. The City’s total net position increased by $31,757,580 as a result of revenues in excess of expenses. $3,896,065 was a result of an increase of net position within business-type activities, and $27,861,515 from an increase of net position within governmental activities. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $98,916,512 an increase of $11,524,182 in comparison with the prior year. The increase was primarily related to timing differences between capital project funding and work completed on capital projects and the recognition of revenue of the COVID-19 ARPA funds that was primarily used for revenue replacement. Approximately 36 percent of this total amount, or $35,190,786, is either nonspendable or restricted for specific purposes. The remaining fund balance was committed by City Council, assigned or unassigned. At the end of the current fiscal year, unassigned fund balance for the General fund was $24,737,085 (45 percent) of the total subsequent year budgeted General fund expenditures. The City’s total noncurrent liabilities, including compensated absences, lease liabilities, subscription-based IT arrangement liabilities, bonded debt, OPEB liability, pollution remediation, and net pension liability decreased $5,710,534 during 2024. Principal paid on bonded debt during the year was $8,420,000. The City issued new bonded debt with an outstanding balance of $8,800,000. Net pension liabilities decreased $8,053,290, $4,970,110 related to the State’s General Employees Retirement Fund (GERF) and $3,083,180 related to the State’s Public Employees Police and Fire Fund (PEPFF). Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplemental information in addition to the basic financial statements themselves. The following chart (Figure 1) shows how the various parts of this annual report are arranged and related to one another. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 29 City of St. Louis Park Management’s Discussion and Analysis The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section combining fund financial statements and schedules that further explains and supports the information in the financial statements. Figure 1 shows how the required parts of this annual report are arranged and relate to one another. In addition to these required elements, we have included a section with combining fund financial statements and schedules that provide details about nonmajor governmental funds, which are added together and presented in single columns in the basic financial statements. Internal service funds statements are also included, reflecting balances prior to their elimination from the government-wide financial statements, to avoid “doubling-up” effect within the governmental and business-type activities columns of said statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 30 City of St. Louis Park Management’s Discussion and Analysis Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of management’s discussion and analysis explains the structure and contents of each of the statements. Government-wide Statements Governmental Funds Proprietary Funds Scope Entire City government and the City’s component units The activities of the City that are not proprietary, such as police, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures and Changes in Fund Balances • Statement of Net Position • Statement of Revenues, Expenses and Changes in Net Position • Statement of Cash Flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long-term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long-term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/outflow information All revenues and expenses during the year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid Fund Financial Statements Figure 2 Major features of the Government-wide and Fund Financial Statements Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 31 City of St. Louis Park Management’s Discussion and Analysis Government-wide financial statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private-sector business. The statement of net position presents information on all the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the 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 in the statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public information, operations, parks and recreation, housing and rehabilitation, social and economic development, and interest on long-term debt. The business- type activities of the City include water, sewer, solid waste, and storm water operations. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Economic Development Authority (EDA) for which the City is financially accountable. Financial information for this component unit is not reported separately from the financial information presented for the primary government itself. The government-wide financial statements start on page 38 of this report. Fund financial statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 32 City of St. Louis Park Management’s Discussion and Analysis 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. The City maintains eight individual major governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Housing Rehabilitation, COVID Fund, Debt Service, Development EDA, Permanent Improvement, Redevelopment District, and Capital, all of which are considered to be major funds. Data from the other six governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts annual appropriated budgets for the General Fund, the Special Revenue Funds of Housing Rehabilitation, Cable Television, Community Development, Special Service Districts, Affordable Housing Trust, and Climate Investment Funds, and the Capital Project Funds of the Development EDA, Park Improvement (sub-fund of the Capital Fund), and Pavement Management (sub-fund of the Capital Fund) Funds. Budgetary comparison statements are provided for these funds to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 40 of this report. Proprietary funds – The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, solid waste, and storm water operations. 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, sewer, solid waste and storm water operations, all of which are major funds for the City except for the City’s solid waste fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for maintaining its fleet of vehicles, management information systems, replacement of City equipment, employee benefits, compensated absences, pension benefit, and insurance. Because all these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the governmental-wide financial statements. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 33 City of St. Louis Park Management’s Discussion and Analysis The basic proprietary fund financial statements start on page 45 of this report. Notes to the financial statements – The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 51 of this report. Other Supplementary Information - In addition to the basic financial statements and accompanying notes, Required Supplementary Information, presents a detailed budgetary comparison schedule for the General Fund and Housing Rehabilitation Fund to demonstrate compliance with the budget. In accordance with the requirements of GASB Statement No. 75, it also includes other post-employment benefit plan schedule of changes in total OPEB liability and related ratios. In accordance with the requirements of GASB Statement No. 68, also included is defined benefit pension plan information: a) schedules of the City’s contributions and b) schedules of the City’s proportionate share of net pension liability. These schedules can be found in the Required Supplementary Information section of this report. The combining statements and schedules referred to earlier in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information starting on page 112 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, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $236,454,685 at the close of the most recent fiscal year. Increase Increase 2024 2023 (Decrease) 2024 2023 (Decrease) Assets Current and other assets 136,000,040$ 128,888,974$ 7,111,066$ 24,980,465$ 23,286,203$ 1,694,262$ Capital assets 157,782,614 146,204,754 11,577,860 67,659,025 60,792,927 6,866,098 Total assets 293,782,654 275,093,728 18,688,926 92,639,490 84,079,130 8,560,360 Total deferred outflows of resources 20,648,529 25,922,978 (5,274,449) - - - Liabilities Other liabilities 12,820,233 18,803,871 (5,983,638) 2,712,172 1,386,674 1,325,498 Noncurrent liabilities 97,686,632 107,173,362 (9,486,730) 26,177,728 22,401,532 3,776,196 Total liabilities 110,506,865 125,977,233 (15,470,368) 28,889,900 23,788,206 5,101,694 Total deferred inflows of resources 26,370,523 25,347,193 1,023,330 4,848,700 5,286,099 (437,399) Net position Net investment in capital assets 88,402,821 76,348,500 12,054,321 42,481,743 38,639,429 3,842,314 Restricted 36,962,412 33,471,783 3,490,629 - - - Unrestricted 52,188,562 39,871,997 12,316,565 16,419,147 16,365,396 53,751 Total net position 177,553,795$ 149,692,280$ 27,861,515$ 58,900,890$ 55,004,825$ 3,896,065$ Governmental Activities Business-type Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 34 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Net Position A portion of the City’s net position (55 percent) reflects its investment in capital assets (e.g., land, permanent easements, buildings, infrastructure, machinery, equipment, lease assets, and subscription-based IT arrangement assets); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position $36,962,412 represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position $68,607,709 may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business-type activities. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 35 City of St. Louis Park Management’s Discussion and Analysis Analysis of the City’s Operations – The following table provides a summary of the City’s operations for the year ended December 31, 2024. Overall, both the governmental and business- type activities revenue and expenses remained stable. City of St. Louis Park’s Changes in Net Position Increase Increase 2024 2023 (Decrease) 2024 2023 (Decrease) Revenues Program revenues Charges for services 8,280,101$ 9,927,469$ (1,647,368)$ 28,040,715$ 26,133,183$ 1,907,532$ Operating grants and contributions 7,665,211 4,876,812 2,788,399 1,690,778 288,228 1,402,550 Capital grants and contributions 10,930,059 3,010,970 7,919,089 224,578 251,800 (27,222) General revenues Property taxes and TIF 61,785,447 57,355,005 4,430,442 - - - Franchise fees 5,502,940 5,442,999 59,941 - - - Lodging taxes 1,096,864 959,428 137,436 - - - Grants and contributions not restricted to specific programs 3,748,369 760,407 2,987,962 - - - Unrestricted investment earnings (loss)3,706,433 3,350,315 356,118 825,709 1,019,421 (193,712) Gain on sale of capital assets 270,524 329,110 (58,586) 1,455 - 1,455 Miscellaneous 899,016 3,119,068 (2,220,052) - - - Total revenues 103,884,964 89,131,583 14,753,381 30,783,235 27,692,632 3,090,603 Expenses General government 14,808,262 14,731,230 77,032 - - - Public safety 24,630,534 25,488,917 (858,383) - - - Public information 2,410,905 1,885,527 525,378 - - - Operations 10,928,402 23,418,451 (12,490,049) - - - Parks and recreation 9,717,552 9,889,201 (171,649) - - - Housing and rehabilitation 1,396,062 1,897,395 (501,333) - - - Social and economic development 12,702,937 11,924,027 778,910 - - - Interest on long-term debt 1,864,221 1,721,000 143,221 - - - Water - - - 6,551,873 6,874,231 (322,358) Sewer - - - 8,104,364 6,331,986 1,772,378 Solid waste - - - 7,017,489 4,484,177 2,533,312 Storm water - - - 2,778,018 2,061,980 716,038 Total expenses 78,458,875 90,955,748 (12,496,873) 24,451,744 19,752,374 4,699,370 Increase (decrease) in net position before transfers 25,426,089 (1,824,165) 27,250,254 6,331,491 7,940,258 (1,608,767) Transfers 2,435,426 2,297,832 137,594 (2,435,426) (2,297,832) (137,594) Change in net position 27,861,515 473,667 27,387,848 3,896,065 5,642,426 (1,746,361) Net position, January 1 149,692,280 149,218,613 473,667 55,004,825 49,3 6 2,399 5,642,426 Net position, December 31 177,553,795$ 149,692,280$ 27,861,515$ 58,900,890$ 55,004,825$ 3,896,065$ Governmental Activities Business-type Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 36 City of St. Louis Park Management’s Discussion and Analysis Governmental Activities Governmental activities increased the City’s net position by $27,861,515. Overall, the governmental activities in 2024 increased due primarily to asset additions of $18,688,926 and a decrease of liabilities in the amount of $15,470,368. Changes in the City’ share of the State’s net pension liability fluctuates based on market conditions. Business-type Activities Business-type activities increased the City’s net position by $3,896,065. Revenues increased by $3,090,603, and expenses increased by $4,699,370 million. Net transfers were comparable to the prior year. The increase in revenues was primarily attributable to an increase in charges for services and an increase in operating grants and contributions from 2023 to 2024. The increase in expenses was primarily attributable to an increase in operating expenses to support the utility services offered to properties throughout the City. Governmental Activities Revenues - The following chart illustrates the City’s revenue by source for its governmental activities: Revenues by Source - Governmental Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 37 City of St. Louis Park Management’s Discussion and Analysis Expenses - The following chart illustrates the City’s expenses and program revenues for its governmental activities: Expenses and Program Revenues - Governmental Activities Business-type Activities Revenues - The following chart illustrates the City’s revenue by source for its business-type activities: Revenue Sources - Business-type Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 38 City of St. Louis Park Management’s Discussion and Analysis Expense and Program Revenues - Business-type Activities Expenses - The following chart illustrates the City’s expenses and program revenues for its business-type activities: Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the year. Governmental funds – As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $98,916,512, an increase of $11,524,182 in comparison with the prior year. Approximately 23 percent of this total amount, $22,643,732, constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of the fund balance $76,272,780 is not available for new spending because it is either 1) nonspendable $664,949, 2) restricted $34,525,837, 3) committed $1,972,106 or 4) assigned $39,109,888 for specific purposes. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 39 City of St. Louis Park Management’s Discussion and Analysis Increase 2024 2023 (Decrease) General 28,627,682$ 27,999,214$ 628,468$ Housing Rehabilitation 7,403,741$ 6,538,203$ 865,538$ COVID -$ 158,715$ (158,715)$ Debt Service 8,250,784$ 7,810,235$ 440,549$ Development EDA 19,502,641$ 18,346,846$ 1,155,795$ Permanent Improvement 3,027,716$ 2,788,978$ 238,738$ Redevelopment District 8,420,024$ 7,169,753$ 1,250,271$ Capital 8,363,739$ (3,745,659)$ 12,109,398$ Fund Balances December 31, Major Funds The Redevelopment District fund is comprised of all tax increment districts in the City. The increase in fund balance of $1,250 ,271 is due to revenues exceeding expenditures by $5,740,804 which was offset by transfers out of $4,490,533 to the EDA and to support City-wide housing. The fund balance of the Debt Service fund increased $440,549 as a result of expenditures related to the City's debt service exc eeding revenues by $813,078. The Debt Service fund balance was increased by $1,253,627 of transfers in to support the City's debt ser vice payments. The Development EDA fund balance increased $1,155,795 as a result of revenues exceeding expenditures by $1,122,788. The fund balance was further increased by transfers in from the Redevelopment District in the amount of $33,007. The City’s General Fund balance increased during the current fiscal year. The increase is primarily attributable to transfers i nto the general fund of $6,509,854 exceeding transfers out of $2,562,114. This was offset by expenditures exceeding revenues by $3,319,272. The Housing Rehabilitation fund balance increased $865,538 as a result of revenue related to housing exceeding expenses by $826,987. This was increased by transfers in exceeding transfers out by $38,551. The Permanent Improvement fund balance increased $238,738 as a result of revenues exceeding expenditures by $238,738. The Capital fund balance increased $12,109,398 due to total other financing sources totaling $4,864,993 and changes within the financial reporting entity (nonmajor to major fund) of $7,992,751. This was offset by expenditures exceeding revenue by $748,346 . The fund balance of the COVID fund decreased $158,715 as a result of transfers out of the COVID fund to the General Fund. Calendar year 2024 was the final year of the COVID fund. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 40 City of St. Louis Park Management’s Discussion and Analysis Proprietary funds – The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, unrestricted net position of the Water, Sewer, Solid Waste, and Storm Water funds amounted to $22,790,275. Total net position increased by $5,784,248. This increase was primarily a result of the City’s operating revenues exceeded its operating expenses by $6,039,081 in 2024. This was partially offset by transfers out of the proprietary funds to other City funds in the amount of $2,435,426. General Fund Budgetary Highlights Actual revenues and transfers in were $2,010,791 over budget and expenditures and transfers out were $1,382,323 over budget. The end result was an increase in fund balance of $628,468. Capital Asset and Debt Administration The City’s investment in capital assets for its governmental and business type activities as of December 31, 2024 was $225,441,639 (net of accumulated depreciation and amortization). This investment in capital assets includes land, buildings and system improvements, machinery and equipment, park facilities, roads, highways, and bridges. The City’s investment in capital assets for the current fiscal year increased 8.9 percent. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 41 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Capital Assets (net of accumulated depreciation) Additional information on the City’s capital assets can be found in Note 5 on pages 66-67 of this report. Debt administration At the end of the current fiscal year, the City had total bonded debt outstanding of $87,840,000. Of this amount, $62,730,000 comprises debt issued for improvement and capital projects, of which $56,285,000 will be repaid by ad valorem tax levies and $6,445,000 will be repaid through the collection of special assessments. The remaining $25,110,000 of the City’s bonded debt represents general obligation revenue bonds with $23,920,000 to be repaid by the Water, Sewer, and Storm Water fund user charges and $1,190,000 from revenues collected from the benefitting property. Furthermore, the City has long-term debt of $1,155,418 related to lease liabilities, $4,884,675 for compensated absences, $6,112,800 for other postemployment benefits payable, $19,090,108 for the net pension liability, $17,420 relating to subscription-based IT arrangement liabilities, and $375,000 related to pollution remediation. Increase Increase 2024 2023 (Decrease) 2024 2023 (Decrease) Land 17,255,135$ 17,255,135$ -$ 515,082$ 515,082$ -$ Permanent easments 1,441,876 1,441,876 --- - Construction in progress 12,952,158 1,675,577 11,276,581 4,973,101 362,677 4,610,424 Buildings and structures 44,407,859 46,102,226 (1,694,367) 390,198 415,179 (24,981) Improvements other than buildings 28,568,485 29,552,739 (984,254) 4,228,601 5,121,929 (893,328) Infrastructure 41,648,056 41,069,421 578,635 54,084,599 50,843,066 3,241,533 Machinery and equipment 4,933,823 4,519,958 413,865 3,467,444 3,534,994 (67,550) Fleet 5,349,962 4,323,304 1,026,658 - - - Lease assets - fleet 66,566 97,261 (30,695) - - - Lease assets - machinery and equipment 1,116,842 4,965 1,111,877 - - - Subscription-based IT arrangements 41,852 162,292 (120,440) - - - Total 157,782,614$ 146,204,754$ 11,577,860$ 67,659,025$ 60,792,927$ 6,866,098$ Governmental Activities Business-type Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 42 City of St. Louis Park Management’s Discussion and Analysis City of St. Louis Park’s Outstanding Debt General Obligation Bonds, Revenue Bonds, and other Debt Principal payments during 2024 totaled $8,420,000. The City maintains an “AAA” rating from Standard & Poor’s for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to 3 percent of its total assessed valuation. The current debt limitation for the City is $289,527,126 which is significantly more than the City’s outstanding general obligation debt. Additional information on the City’s long-term debt can be found in Note 6 on pages 68-78 of this report. Economic Factors, Subsequent Year Budgets, Rates and Changes in Structure The City estimates that the demand for City services will continue to grow as the economy improves. The property tax levy is set annually and is adjusted as necessary to fund the cost of providing services to our citizens and customers. Charges for services are evaluated each year and adjusted to support operations and capital outlay. All these factors were considered in preparing the City’s budget for the 2025 fiscal year. Requests for Information This financial report is designed to provide our citizens, customers, and creditors with a general overview of the City of St. Louis Park’s finances and to show the City’s accountability for the resources it is entrusted. Questions concerning any of the information provided in the report, or requests for additional financial information, can be directed to the City of St. Louis Park Finance Department at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota, 55416, 952-924-2500. Increase Increase 2024 2023 (Decrease) 2024 2023 (Decrease) G.O. improvement 56,285,000$ 58,160,000$ (1,875,000)$ 23,920,000$ 20,600,000$ 3,320,000$ G.O. tax increment - 570,000 (570,000) - - - G.O. special assessment 6,445,000 6,870,000 (425,000) - - - G.O. revenue 1,190,000 1,260,000 (70,000) - - - Bond issuance premium/discount 2,709,837 2,820,721 (110,884) 1,679,102 1,542,977 136,125 Lease liability 1,155,418 105,354 1,050,064 - - - Compensated absences 4,681,049 4,413,112 267,937 203,626 258,555 (54,929) Other postemployment benefits 6,112,800 5,694,659 418,141 - - - Pollution remediation liability - - - 375,000 - 375,000 Net pension liability 19,090,108 27,143,398 (8,053,290) - - - Subscription liability 17,420 136,118 (118,698) - - - Total 97,686,632$ 107,173,362$ (9,486,730)$ 26,177,728$ 22,401,532$ 3,776,196$ Governmental Activities Business-type Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 43 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 44 BASIC FINANCIAL STATEMENTS Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 45 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2024 Governmental Business-Type Activities Activities Totals Assets Cash and investments 91,903,235$ 18,720,235$ 110,623,470$ Accrued interest receivable 184,433 42,154 226,587 Due from other governments 4,216,383 685,327 4,901,710 Accounts receivable 2,878,154 5,157,936 8,036,090 Taxes receivable 606,652 - 606,652 Prepaid items 1,137,881 474,990 1,612,871 Inventories 273,471 78,959 352,430 Internal balances 6,371,128 (6,371,128) - Special assessments receivable 8,929,402 1,055,126 9,984,528 Leases receivable 186,646 5,136,866 5,323,512 Loans receivable 13,875,006 - 13,875,006 Pledges receivable 650,000 - 650,000 Land held for resale 4,787,649 - 4,787,649 Capital assets Nondepreciable assets 31,649,169 5,488,183 37,137,352 Depreciable assets (net of accumulated depreciation) 124,908,185 62,170,842 187,079,027 Amortizable assets (net of accumulated amortization) 1,225,260 - 1,225,260 Total assets 293,782,654 92,639,490 386,422,144 Deferred outflows of resources Related to pensions 18,862,358 - 18,862,358 Related to OPEB 1,786,171 - 1,786,171 Total deferred outflows of resources 20,648,529 - 20,648,529 Liabilities Accounts payable 2,445,571 1,156,741 3,602,312 Salaries payable 2,009,346 178,160 2,187,506 Due to other governments 1,452,070 91,701 1,543,771 Contracts payable 2,713,441 798,554 3,511,995 Accrued interest payable 817,273 325,285 1,142,558 Deposits payable 1,927,616 151,831 2,079,447 Unearned revenue 1,454,916 9,900 1,464,816 Noncurrent liabilities Due within one year 10,073,571 2,690,958 12,764,529 Due in more than one year 87,613,061 23,486,770 111,099,831 Total liabilities 110,506,865 28,889,900 139,396,765 Deferred inflows of resources Related to pensions 25,217,862 - 25,217,862 Related to OPEB 969,971 - 969,971 Related to leases 182,690 4,848,700 5,031,390 Total deferred inflows of resources 26,370,523 4,848,700 31,219,223 Net position Net investment in capital assets 88,402,821 42,481,743 130,884,564 Restricted for Redevelopment districts 12,490,085 - 12,490,085 Affordable housing 11,638,103 - 11,638,103 E-911 purposes 32,544 - 32,544 Public safety aid 1,492,938 - 1,492,938 Community development 537,522 - 537,522 Debt service 9,446,733 - 9,446,733 Cable TV equipment 16,251 - 16,251 Police and fire purposes 1,308,236 - 1,308,236 Unrestricted 52,188,562 16,419,147 68,607,709 Total net position 177,553,795$ 58,900,890$ 236,454,685$ The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 46 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF ACTIVITIES Statement 2 For The Year Ended December 31, 2024 Operating Capital Charges For Grants and Grants and Governmental Business-Type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities General government 14,808,262$ 547,692$ 1,035,435$ -$ (13,225,135)$ -$ (13,225,135)$ Public safety 24,630,534 4,001,428 2,542,460 116,713 (17,969,933) - (17,969,933) Public information 2,410,905 - -- (2,410,905) - (2,410,905) Operations 10,928,402 453,951 977,081 7,556,190 (1,941,180) - (1,941,180) Parks and recreation 9,717,552 3,094,847 397,064 - (6,225,641) - (6,225,641) Housing and rehabilitation 1,396,062 4,904 1,228,204 427,819 264,865 - 264,865 Social and economic development 12,702,937 177,279 1,484,967 2,829,337 (8,211,354) - (8,211,354) Interest on long-term debt 1,864,221 - -- (1,864,221) - (1,864,221) Total governmental activities 78,458,875 8,280,101 7,665,211 10,930,059 (51,583,504) - (51,583,504) Business-Type activities Water 6,551,873 8,709,379 37,271 87,335 - 2,282,112 2,282,112 Sewer 8,104,364 9,308,774 71,121 137,243 - 1,412,774 1,412,774 Solid waste 7,017,489 6,205,281 203,526 - -(608,682) (608,682) Storm water 2,778,018 3,817,281 1,378,860 - -2,418,123 2,418,123 Total business-type activities 24,451,744 28,040,715 1,690,778 224,578 - 5,504,327 5,504,327 Total 102,910,619$ 36,320,816$ 9,355,989$ 11,154,637$ (51,583,504) 5,504,327 (46,079,177) General revenues Taxes Property taxes 46,118,820 - 46,118,820 Tax increment 15,666,627 - 15,666,627 Franchise taxes 5,502,940 - 5,502,940 Lodging taxes 1,096,864 - 1,096,864 Grants and contributions not restricted to specific programs 3,748,369 - 3,748,369 Unrestricted investment earnings (loss)3,706,433 825,709 4,532,142 Gain on sale of capital assets 270,524 1,455 271,979 Miscellaneous 899,016 - 899,016 Transfers 2,435,426 (2,435,426) - Total general revenues and transfers 79,445,019 (1,608,262) 77,836,757 Change in net position 27,861,515 3,896,065 31,757,580 Net position - January 1 149,692,280 55,004,825 204,697,105 Net position - December 31 177,553,795$ 58,900,890$ 236,454,685$ Net (Expense) Revenue and Changes in Net Position Program Revenues The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 47 CITY OF ST. LOUIS PARK, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2024 Special Revenue Fund General Housing Rehabilitation Debt Service Assets Cash and investments 32,057,365$ 4,248,004$ 8,701,000$ Accrued interest receivable 184,281 - - Due from other governments 730,638 - - Accounts receivable 984,183 13,654 79,686 Taxes receivable - unremitted 161,552 - 28,012 Taxes receivable - delinquent 332,497 - - Prepaid items 376,821 323 - Inventories 273,471 - - Special assessments receivable - delinquent - 42,159 - Special assessments receivable - deferred - 7,918,090 - Interfund loan receivable - - - Loans receivable - current - 500,000 70,000 Loans receivable - noncurrent - 3,635,130 1,120,000 Pledges receivable - current - - - Pledges receivable - noncurrent - - - Leases receivable - current - - - Leases receivable - noncurrent - - - Land held for resale - - - Total assets 35,100,808$ 16,357,360$ 9,998,698$ Liabilities Accounts payable 1,410,838$ 1,795$ 3,425$ Salaries payable 1,896,737 6,447 - Due to other governments 171,775 - - Contracts payable 4,502 - - Interfund loan payable - 995,701 - Deposits payable 1,378,726 - 548,540 Unearned revenue 1,278,051 - - Total liabilities 6,140,629 1,003,943 551,965 Deferred inflows of resources Related to leases - - - Unavailable revenue 332,497 7,949,676 1,195,949 Total deferred inflows of resources 332,497 7,949,676 1,195,949 Fund balances Nonspendable 650,292 323 - Restricted 1,525,482 - 8,250,784 Committed - - - Assigned 1,714,823 7,403,418 - Unassigned 24,737,085 - - Total fund balances 28,627,682 7,403,741 8,250,784 Total liabilities, deferred inflows of resources, and fund balances 35,100,808$ 16,357,360$ 9,998,698$ The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 48 Statement 3 Development EDA Permanent Improvement Fund Redevelopment District Capital Fund Other Governmental Funds Total Governmental Funds 9,219,455$ 3,003,784$ 12,494,980$ 6,949,097$ 10,558,186$ 87,231,871$ 152 - - - - 184,433 22,787 - - 3,144,125 - 3,897,550 352,294 25,046 - 1,283,722 139,569 2,878,154 3,904 - 45,146 3,828 8,186 250,628 - - - - 12,942 345,439 6,127 - - 6,575 1,632 391,478 - - - - - 273,471 - 5,673 - - 1,747 49,579 - 691,831 - - 269,902 8,879,823 3,159,100 - - - 1,800,000 4,959,100 307,065 - - - 7,350 884,415 1,947,064 - 2,619,714 - 3,668,683 12,990,591 - - - 100,000 - 100,000 - - - 550,000 - 550,000 42,742 - - - - 42,742 143,904 - - - - 143,904 4,787,649 - - - - 4,787,649 19,992,243$ 3,726,334$ 15,159,840$ 12,037,347$ 16,468,197$ 128,840,827$ 164,137$ 2,988$ 8,255$ 213,374$ 376,708$ 2,181,520$ 22,218 - - - 16,942 1,942,344 26,086 - 791,454 538 218,265 1,208,118 - - - 2,708,939 - 2,713,441 - - 3,963,399 - - 4,959,100 - - - 350 - 1,927,616 - - - - 176,865 1,454,916 212,441 2,988 4,763,108 2,923,201 788,780 16,387,055 182,690 - - - - 182,690 94,471 695,630 1,976,708 750,407 359,232 13,354,570 277,161 695,630 1,976,708 750,407 359,232 13,537,260 6,127 - - 6,575 1,632 664,949 - - 10,513,377 2,132,552 12,103,642 34,525,837 - - - - 1,972,106 1,972,106 19,496,514 3,027,716 - 6,224,612 1,242,805 39,109,888 - - (2,093,353) - - 22,643,732 19,502,641 3,027,716 8,420,024 8,363,739 15,320,185 98,916,512 19,992,243$ 3,726,334$ 15,159,840$ 12,037,347$ 16,468,197$ 128,840,827$ Total Fund balances reported above 98,916,512$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds 137,286,062 Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable revenue in the funds: Receivables not available soon enough to pay for the current period's expenditures 13,354,570 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds: Bonds payable and unamortized bond premium/discount (66,629,837) Accrued interest payable (795,338) Internal service funds are used by management to charge the cost of certain services to individual funds. The assets and liabilities are included in the governmental statement of net position (4,578,174) Net position of governmental activities 177,553,795$ Capital Projects Funds The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 49 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For The Year Ended December 31, 2024 General Housing Rehabilitation COVID Fund Debt Service Revenues Property taxes 33,978,736$ -$ -$ 6,292,503$ Tax increments - - - - Franchise taxes - - - - Lodging tax - - - - Licenses and permits 4,662,869 - - - Intergovernmental 4,885,116 - 3,742,369 418,450 Charges for services 3,154,002 - -- Fines and forfeitures 14,261 - -- Special assessments - 1,238,129 - - Interest income (loss)999,944 148,780 127,630 184,845 Miscellaneous 758,788 - - 115,380 Total revenues 48,453,716 1,386,909 3,869,999 7,011,178 Expenditures Current General government 11,230,640 - - - Public safety 23,270,033 - - - Public information - - - - Operations 5,486,786 - - - Parks and recreation 9,196,252 - - - Housing and rehabilitation - 520,102 - - Social and economic development - - - - Miscellaneous 618,487 - - - Non-departmental internal charges 1,021,337 - - - Capital outlay Public safety 676,041 - - - Public information - - - - Operations 273,412 - - - Parks and recreation - - - - Social and economic development - - - - Debt service Principal - - - 5,990,000 Interest and other - 39,820 - 1,834,256 Total expenditures 51,772,988 559,922 - 7,824,256 Revenues over (under) expenditures (3,319,272) 826,987 3,869,999 (813,078) Other financing sources (uses) Transfers in 6,509,854 718,564 - 1,253,627 Transfers out (2,562,114) (680,013) (4,028,714) - Bonds issued - - - - Premium on bonds issued - - - - Total other financing sources (uses)3,947,740 38,551 (4,028,714) 1,253,627 Net change in fund balances 628,468 865,538 (158,715) 440,549 Fund balances - January 1, as previously presented 27,999,214 6,538,203 158,715 7,810,235 Changes within financial reporting entity (nonmajor to major fund)- - - - Fund balances - January 1, as adjusted 27,999,214 6,538,203 158,715 7,810,235 Fund balances - December 31 28,627,682$ 7,403,741$ -$ 8,250,784$ Special Revenue Funds The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 50 Statement 4 Development EDA Permanent Improvement Fund Redevelopment District Capital Fund Other Governmental Funds Total Governmental Funds 921,653$ -$ -$ 860,000$ 1,704,690$ 43,757,582$ - - 15,666,627 - - 15,666,627 - - - 4,928,818 574,122 5,502,940 1,096,864 - - - - 1,096,864 - - - - - 4,662,869 1,488,540 - - 9,680,915 330,429 20,545,819 177,279 - - 17,538 4,200 3,353,019 - - - - - 14,261 - 182,518 - - 266,223 1,686,870 490,233 96,495 514,041 532,026 438,386 3,532,380 69,053 900 - 80,923 20,023 1,045,067 4,243,622 279,913 16,180,668 16,100,220 3,338,073 100,864,298 - - - - - 11,230,640 - 41,175 - 41,576 - 23,352,784 - - - - 525,564 525,564 - - - 108,309 - 5,595,095 - - - 512,243 - 9,708,495 - - - - 899,510 1,419,612 3,120,834 - 10,264,512 1,532 419,198 13,806,076 - - - - - 618,487 - - - - 9,063 1,030,400 - - - - - 676,041 - - - - 20,114 20,114 - - - 12,879,928 - 13,153,340 - - - 774,474 - 774,474 - - - 2,445,424 - 2,445,424 - - - - - 5,990,000 - - 175,352 85,080 - 2,134,508 3,120,834 41,175 10,439,864 16,848,566 1,873,449 92,481,054 1,122,788 238,738 5,740,804 (748,346) 1,464,624 8,383,244 68,654 - - 1,626,067 2,240,831 12,417,597 (35,647) - (4,490,533) - (718,564) (12,515,585) - - - 3,050,000 - 3,050,000 - - - 188,926 - 188,926 33,007 - (4,490,533) 4,864,993 1,522,267 3,140,938 1,155,795 238,738 1,250,271 4,116,647 2,986,891 11,524,182 18,346,846 - 7,169,753 (3,745,659) 23,115,023 87,392,330 - 2,788,978 - 7,992,751 (10,781,729) - 18,346,846 2,788,978 7,169,753 4,247,092 12,333,294 87,392,330 19,502,641$ 3,027,716$ 8,420,024$ 8,363,739$ 15,320,185$ 98,916,512$ Capital Projects Funds The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 51 CITY OF ST. LOUIS PARK, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5 EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2024 Amounts reported for governmental activities in the statement of activities (Statement 2) are different because: Net changes in fund balances - total governmental funds (Statement 4)11,524,182$ 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. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay capitalized 17,317,840 Depreciation expense (8,020,252) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Principal repayments on long term debt 5,990,000 Proceeds from long term debt (3,050,000) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.711 Governmental funds report debt issuance premiums and discounts as an other financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the City-wide financial statements.110,884 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments (871,882) Property taxes (16,555) Intergovernmental grant revenues 100,407 Loans and other (146,051) Internal service funds are used by management to charge the costs for equipment, information system, equipment replacement, employee benefits and major losses incurred by individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.4,922,231 Change in net position of governmental activities (Statement 2)27,861,515$ The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 52 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF NET POSITION Statement 6 PROPRIETARY FUNDS December 31, 2024 Governmental Activities Non-Major Fund Internal Water Sewer Storm Water Solid Waste Totals Service Funds Assets Current assets Cash and investments 6,546,815$ 5,501,708$ 4,017,211$ 2,654,501$ 18,720,235$ 4,671,364$ Accrued interest receivable 42,154 - - - 42,154 - Due from other governments - 8,467 676,860 - 685,327 318,833 Accounts receivable 1,458,646 1,603,801 605,319 1,490,170 5,157,936 - Taxes receivable - unremitted - - - - - 10,585 Prepaid items 14,794 451,910 7,086 1,200 474,990 746,403 Inventories 78,959 - - - 78,959 - Special assessments receivable - delinquent 87,616 273 - - 87,889 - Special assessments receivable - deferred 503,120 464,117 - - 967,237 - Leases receivable - current 341,057 - - - 341,057 - Leases receivable - noncurrent 4,795,809 - - - 4,795,809 - Total current assets 13,868,970 8,030,276 5,306,476 4,145,871 31,351,593 5,747,185 Noncurrent assets Capital assets Nondepreciable capital assets, at cost Land 114,844 60,000 340,238 - 515,082 818,094 Construction in progress 3,118,689 385,569 1,468,843 - 4,973,101 395,373 Total nondepreciable capital assets, at cost 3,233,533 445,569 1,809,081 - 5,488,183 1,213,467 Depreciable capital assets, at cost Buildings and structures 5,082,540 6,111 - - 5,088,651 9,520,322 Improvements other than buildings 2,088,407 749,350 7,165,760 - 10,003,517 3,476,901 Infrastructure 40,325,380 25,138,391 26,487,992 - 91,951,763 1,313,801 Machinery, furniture and equipment 9,036,176 305,031 103,765 - 9,444,972 11,106,571 Fleet - - - - - 12,435,492 Total depreciable capital assets, at cost 56,532,503 26,198,883 33,757,517 - 116,488,903 37,853,087 Less: accumulated depreciation (22,416,810) (17,470,742) (14,430,509) - (54,318,061) (19,795,262) Total depreciable capital assets, net of accumulated depreciation 34,115,693 8,728,141 19,327,008 - 62,170,842 18,057,825 Amortizable capital assets, at cost Subscription-based IT arrangements - - - - - 258,303 Lease assets - machinery, furniture and equipment - - - - - 1,356,187 Lease assets - fleet - - - - - 148,797 Total amortizable capital assets, at cost - - - - - 1,763,287 Less: accumulated amortization - - - - - (538,027) Total amortizable capital assets, net of accumulated amortization - - - - - 1,225,260 Total capital assets, net of accumulated depreciation and amortization 37,349,226 9,173,710 21,136,089 - 67,659,025 20,496,552 Total noncurrent assets 37,349,226 9,173,710 21,136,089 - 67,659,025 20,496,552 Total assets 51,218,196 17,203,986 26,442,565 4,145,871 99,010,618 26,243,737 Deferred outflows of resources Related to pensions - - - - - 18,862,358 Related to OPEB - - - - - 1,786,171 Total deferred outflows of resources - - - - - 20,648,529 Liabilities Current liabilities Accounts payable 164,386 140,539 75,991 775,825 1,156,741 264,051 Salaries payable 67,741 48,633 40,127 21,659 178,160 1,761 Accrued flex spending - - - - - 65,241 Due to other governments 36,035 210 213 55,243 91,701 243,952 Contracts payable 630,918 50,928 116,708 - 798,554 - Deposits payable 95,493 - 56,338 - 151,831 - Accrued interest payable 289,331 17,409 18,545 - 325,285 21,935 Unearned revenue 9,900 - - - 9,900 - Compensated absences payable - current 66,557 42,168 50,647 16,586 175,958 3,798,863 Leases liability - current - - - - - 290,329 Subscription-based IT arrangements liability - current - - - - - 17,420 Bonds payable - current 2,169,400 160,500 185,100 - 2,515,000 - Other postemployment benefits payable - current - - - - - 296,959 Total current liabilities 3,529,761 460,387 543,669 869,313 5,403,130 5,000,511 Noncurrent liabilities Compensated absences payable 10,253 6,713 8,062 2,640 27,668 882,186 Lease liability - - - - - 865,089 Pollution payable 375,000 - - - 375,000 - Bonds payable 20,802,588 1,368,668 912,846 - 23,084,102 - Other postemployment benefits payable - - - - - 5,815,841 Net pension liability - - - - - 19,090,108 Total noncurrent liabilities 21,187,841 1,375,381 920,908 2,640 23,486,770 26,653,224 Total liabilities 24,717,602 1,835,768 1,464,577 871,953 28,889,900 31,653,735 Deferred inflows of resources Related to pensions - - - - - 25,217,862 Related to OPEB - - - - - 969,971 Related to leases 4,848,700 - - - 4,848,700 - Total deferred inflows of resources 4,848,700 - - - 4,848,700 26,187,833 Net position Net investment in capital assets 14,966,694 7,593,614 19,921,435 - 42,481,743 19,323,714 Unrestricted 6,685,200 7,774,604 5,056,553 3,273,918 22,790,275 (30,273,016) Total net position 21,651,894$ 15,368,218$ 24,977,988$ 3,273,918$ 65,272,018 (10,949,302)$ Adjustment to reflect consolidation of Internal Service fund activities (6,371,128) Net position of business-type activities 58,900,890$ Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 53 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 54 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND Statement 7 CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2024 Governmental Activities Non-Major Fund Internal Water Sewer Storm Water Solid Waste Total Service Funds Operating revenues Charges for services 8,198,829$ 9,308,774$ 3,807,680$ 6,152,074$ 27,467,357$ 4,865,889$ Other 127,605 - 9,601 53,207 190,413 473,859 Rent 382,945 - -- 382,945 - Total operating revenues 8,709,379 9,308,774 3,817,281 6,205,281 28,040,715 5,339,748 Operating expenses Personal services 1,631,752 1,201,060 945,181 513,219 4,291,212 4,148,775 Supplies 342,563 30,614 26,645 1,027,741 1,427,563 315,162 Professional services 382,933 15,065 264,333 36,241 698,572 1,024,814 Insurance 28,868 67,550 6,439 6,958 109,815 279,280 Utilities 379,314 5,281,952 31,719 4,898,099 10,591,084 - Repairs and maintenance 139,606 208,029 92,211 - 439,846 23,921 Depreciation and amortization 1,121,101 242,460 823,519 - 2,187,080 2,470,546 Internal charges 84,534 117,700 49,022 39,099 290,355 - Other 1,460,208 437,739 51,529 16,631 1,966,107 501,129 Total operating expenses 5,570,879 7,602,169 2,290,598 6,537,988 22,001,634 8,763,627 Operating income (loss)3,138,500 1,706,605 1,526,683 (332,707) 6,039,081 (3,423,879) Nonoperating revenues (expenses) Interest income (loss)283,403 251,715 178,006 112,585 825,709 174,053 Property taxes - - - - - 2,377,793 Intergovernmental revenue 37,271 71,121 1,378,860 203,526 1,690,778 1,132,377 Amortization of bond premiums 198,070 16,470 26,050 - 240,590 - Gain on disposal of capital assets - 1,455 - - 1,455 270,524 Interest expense (714,174) (43,253) (45,090) - (802,517) (30,234) Total nonoperating revenues (expenses)(195,430) 297,508 1,537,826 316,111 1,956,015 3,924,513 Income (loss) before capital contributions and transfers 2,943,070 2,004,113 3,064,509 (16,596) 7,995,096 500,634 Capital contributions and transfers Connection fees and special assessments 87,335 137,243 - - 224,578 - Transfers in - - - - - 2,533,414 Transfers out (763,938) (1,026,181) (383,565) (261,742) (2,435,426) - Change in net position 2,266,467 1,115,175 2,680,944 (278,338) 5,784,248 3,034,048 Net position - January 1 19,385,427 14,253,043 22,297,044 3,552,256 59,487,770 (13,983,350) Net position - December 31 21,651,894$ 15,368,218$ 24,977,988$ 3,273,918$ 65,272,018$ (10,949,302)$ Change in net position as reported above 5,784,248$ Adjustment to reflect consolidation of Internal Service fund activities (1,888,183) Change in net position of business-type activities 3,896,065$ Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 55 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS Page 1 of 2 For The Year Ended December 31, 2024 Governmental Activities Non-Major Fund Internal Water Sewer Storm Water Solid Waste Total Service Funds Cash flows from operating activities Receipts from customers and users 8,428,074$ 9,240,905$ 3,839,267$ 5,682,502$ 27,190,748$ -$ Receipts from interfund services provided - - - - - 4,865,889 Other operating cash receipts 127,605 - 9,601 53,207 190,413 573,487 Payments to suppliers (1,773,430) (5,904,419) (310,077) (5,636,347) (13,624,273) (2,021,233) Payments to employees (1,675,256) (1,171,536) (927,457) (508,424) (4,282,673) (5,193,693) Payments for interfund services provided (84,534) (117,700) (49,022) (39,099) (290,355) - Net cash flows provided (used) by operating activities 5,022,459 2,047,250 2,562,312 (448,161) 9,183,860 (1,775,550) Cash flows from noncapital financing activities Transfers in - - - - - 365,531 Transfers out (763,938) (1,026,181) (383,565) (261,742) (2,435,426) - Property taxes - - - - - 2,370,202 Intergovernmental receipts 37,271 62,654 702,000 203,526 1,005,451 858,615 Net cash flows provided (used) by noncapital financing activities (726,667) (963,527) 318,435 (58,216) (1,429,975) 3,594,348 Cash flows from capital and related financing activities Transfers in - - - - - 2,167,883 Connection fees/special assessments received 117,377 95,622 - - 212,999 - Acquisition of capital assets (6,233,721) (726,749) (2,092,708) - (9,053,178) (3,394,634) Proceeds from sale of capital assets - 1,455 - - 1,455 270,526 Proceeds from bond issuance 6,014,450 - - - 6,014,450 - Principal paid Bonds (2,101,000) (150,000) (179,000) - (2,430,000) - Leases - - - - - (306,122) Subscription-based IT arrangements - - - - - (118,698) Interest paid Bonds (559,492) (44,470) (47,287) - (651,249) - Leases - - - - - (7,878) Subscription-based IT arrangements - - - - - (3,128) Net cash flows provided (used) by capital and related financing activities (2,762,386) (824,142) (2,318,995) - (5,905,523) (1,392,051) Cash flows from investing activities Investment income 284,851 251,715 178,006 112,585 827,157 174,053 Net increase (decrease) in cash and cash equivalents 1,818,257 511,296 739,758 (393,792) 2,675,519 600,800 Cash and cash equivalents - January 1 4,728,558 4,990,412 3,277,453 3,048,293 16,044,716 4,070,564 Cash and cash equivalents - December 31 6,546,815$ 5,501,708$ 4,017,211$ 2,654,501$ 18,720,235$ 4,671,364$ Business-Type Activities Enterprise Funds The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 56 CITY OF ST. LOUIS PARK, MINNESOTA STATEMENT OF CASH FLOWS Statement 8 PROPRIETARY FUNDS Page 2 of 2 For The Year Ended December 31, 2024 Governmental Business-Type Activities Enterprise Funds Activities Non-Major Fund Internal Water Sewer Storm Water Solid Waste Totals Service Funds Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) 3,138,500$ 1,706,605$ 1,526,683$ (332,707)$ 6,039,081$ (3,423,879)$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation and amortization 1,121,101 242,460 823,519 - 2,187,080 2,470,546 (Increase) decrease in assets/deferred outflows Accounts receivable (62,366) (67,869) 59,337 (469,572) (540,470) 99,628 Lease receivable 319,661 - - - 319,661 - Prepaid items (4,208) (5,884) 6,900 9,386 6,194 (182,127) Inventories 3,147 - - - 3,147 - Deferred outflows of resources - - - - - 5,274,449 Increase (decrease) in liabilities/deferred inflows Accounts payable (52,892) 95,564 47,352 323,660 413,684 102,823 Due to other governments 14,109 (2,575) (5,155) 16,277 22,656 202,377 Contracts payable 624,906 49,425 113,702 - 788,033 - Deposits payable 16,504 - (27,750) - (11,246) - Accrued salaries payable 13,892 25,274 15,352 8,950 63,468 1,761 Accrued flex spending - - - - - 39,820 Unearned revenue 9,900 - - - 9,900 - Pollution payable 375,000 - - - 375,000 - Compensated absences payable (57,396) 4,250 2,372 (4,155) (54,929) 267,937 Other postemployment benefits - - - - - 418,141 Net pension liability - - - - - (8,053,290) Deferred inflows of resources (437,399) - - - (437,399) 1,006,264 Net cash provided (used) by operating activities 5,022,459$ 2,047,250$ 2,562,312$ (448,161)$ 9,183,860$ (1,775,550)$ Noncash capital and related financing activities Amortization of bond premiums 198,070$ 16,470$ 26,050$ -$ 240,590$ -$ Capital assets acquired via lease -$ -$ -$ -$ -$ 1,356,188$ The accompanying notes are an integral part of these financial statements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 57 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 58 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of St. Louis Park, Minnesota (the City) was incorporated in 1886 and operates a council-manager form of government under the “Home Rule Charter” concept according to applicable Minnesota laws and statutes. The governing body consists of a seven-member City Council elected by the voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City (the primary government) and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are combined with data of the City. BLENDED COMPONENT UNITS The Economic Development Authority (EDA) is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City’s operations because the members of the City Council serve as EDA Board Members and the City has the ability to access EDA resources. Separate financial statements are not prepared for the EDA. The following capital project funds are maintained by the EDA: Development EDA and Redevelopment District. RELATED ORGANIZATION The Housing Authority (HA) is an entity legally separate from the City. The HA is governed by a Board of Commissioners appointed by the City Council. However, the City’s accountability for the HA does not extend beyond making the appointments. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or business-type activity is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. 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 business-type activity and 2) grants and contributions that are restricted to meeting Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 59 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, lodging tax, licenses and permits, intergovernmental revenue, charges for services, fines and forfeitures, special assessments, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Housing Rehabilitation Fund is used to account for revenues from revenue bond fees and expenditures related to preventing deterioration of multi-unit housing. The COVID Fund accounts for the proceeds of Federal COVID relief funding. The Debt Service Fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of the government. The Development EDA Fund accounts for transactions related to redevelopment efforts in the City; financing is provided by investment income, grants, and developer reimbursements. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 60 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 The Permanent Improvement Fund accounts for improvement projects such as fire alarm installations, and mandated safety improvements for hazardous buildings. Revenues are through the use of special assessments, interest income, and other miscellaneous revenues. The Redevelopment District Fund accounts for transactions relative to acquisition and development in the City’s tax increment redevelopment districts; financing is provided by the sale of general obligation tax increment bonds along with tax increment property tax payments. The Capital Fund accounts transactions related to city-wide capital projects including work completed on streets, sidewalks, trails, and other capital projects. Revenues and financing are provided through bonding, franchise fees, intergovernmental revenues, property taxes, investment income, and other miscellaneous revenues. The City reports the following major enterprise funds: The Water Fund accounts for the provisions of water services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. The Sewer Fund accounts for the provisions of sewer services to residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing and collection. The Storm Water Fund accounts for the revenue and expenses related to providing storm water to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including administration, operations, construction, maintenance, billing and collection. The City reports the following non-major enterprise funds: The Solid Waste Fund accounts for the revenue and expense related to collection, disposal, and recycling of residential solid waste. Financing is provided by charging each property owner a predetermined service fee. Additionally, the government reports the following fund types: Internal Service Funds account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost reimbursement basis. The City’s internal service funds account for employee benefits including postemployment benefits and pensions, insurance, and capital replacement. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 61 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water, sewer, solid waste and storm water enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETARY INFORMATION Budgets are legally adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are legally adopted for the General Fund, the following special revenue funds: Housing Rehabilitation, Cable Television, Community Development, Special Service Districts, Affordable Housing Trust and Climate Investment Funds, and the following capital projects fund: Development EDA. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. The City Council reviews the proposed budget and makes appropriate changes. 3. Public hearings are conducted to obtain taxpayer comments. 4. The budget is legally enacted through passage of a resolution on a departmental/divisional basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts in accordance with the provisions of Section 6.05 of the City Charter. 5. After the budget resolution is approved, the City Council can increase the budget only by resolution if actual receipts exceed the estimated, or from accumulated fund balance in the amount of unexpended appropriations from the previous fiscal year. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 62 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 6.Formal budgetary integration is employed as a management control device during the year for the General Fund. 7. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Fund. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 8. A capital improvement program is reviewed annually by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 9. The legal level of budgetary control is at the fund level. Expenditures may not legally exceed budgeted appropriations at the total fund level. The City Council must approve all expenditures at fund level either by resolution or through the disbursement process. The following is a listing of funds whose expenditures exceeded budgeted appropriations for the year ended December 31, 2024: Final Over Budget Actual Budget Major Funds: General Fund 51,331,432$ 51,772,988$ 441,556$ Nonmajor Funds: Special Revenue Funds: Cable Television 544,253 554,741 10,488 Climate Investment 181,000 217,570 36,570 10. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services, supplies, and other services and charges, and capital outlay) within each program. Management can exceed appropriations at the department level without City Council approval. Approval must be received for exceeding budgeted appropriations at the fund level. 11.The City Council may authorize transfer of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of average monthly cash balances. The City’s investment policy dictates that the General fund is to receive the first three percent of all interest earnings as an administrative fee. The administrative fee does not apply to the Economic Development Authority. Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-like external investment pools, which are stated at amortized cost. Investment income is accrued at the balance sheet date. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 63 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore the entire balance in such fund types is considered cash equivalents. It is the City’s policy to invest in a manner that seeks to ensure preservation of capital in the overall portfolio. Safety of principal is the foremost objective, but liquidity and yield are also important considerations. The objective will be to mitigate credit risk by purchasing only highly rated securities with adequate collateral and interest rate risk by matching maturities to cash flow needs and holding securities to maturity. G. ACCOUNTS RECEIVABLE Property taxes and special assessment receivables have been reported net of estimated uncollectible accounts (See Note 1 I and J). The City annually certifies delinquent water and sewer accounts to the County for collection in the following year. Because utility bills are considered liens on property, no estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported. H. INTERFUND RECEIVABLES AND PAYABLES Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., short-term cash borrowings) or “interfund loan receivable/payable” (i.e., interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” I. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflow of resources because they are not available to finance current expenditures. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 64 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS The City’s property tax revenue includes payment from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per Minnesota Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation “shared” is a portion of commercial/industrial property valuation growth since 1971. Property taxes paid to the City through this formula for December 31, 2024 totaled $2,948,549. Receipt of property taxes from this “fiscal disparities pool” does not increase or decrease total tax revenue. J. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. GOVERNMENTAL FUND FINANCIAL STATEMENTS Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred, and special deferred assessments receivable in governmental funding are completely offset by deferred inflow of resources. K. INVENTORIES Inventory is valued at cost using the first-in, first out (FIFO) method. Inventory consists mainly of expendable supplies held for consumption. Inventories of the governmental funds are recorded as expenditures when consumed rather than when purchased. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 65 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 L.PREPAID ITEMS Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. M. CAPITAL ASSETS Capital assets, which include right-to-use lease assets, subscription assets, property, plant, equipment, infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible assets such as easements and computer software, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of three years and an initial individual cost of more than the following: Land All Buildings $50,000 Other Improvements $50,000 Machinery and equipment $25,000 Vehicles $25,000 Infrastructure $250,000 Other assets $50,000 Construction in progress Accumulate all costs and capitalize if over $100,000 when completed Capitalization Threshold Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at estimated acquisition value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment, including right-to-use lease assets and subscription assets of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives: Buildings and structures 5 – 30 years Improvements other than buildings 5 – 30 years Infrastructure 5 – 100 years Machinery, furniture and equipment (including software) 3 – 30 years Fleet 3 – 25 years Temporary easements 3 – 5 years Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 66 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Capital assets of the water utility and sewer utility operations include the water distribution system and sewer collection system. These systems have been wholly (or substantially) financed by non-operating funds (special assessments, general taxes, federal and state grants, and other sources) and contribution to the Water and Sewer operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. The City implemented GASB 51, Accounting and Financial Reporting for Intangible Assets effective January 1, 2010, which required the City to capitalize and amortize intangible assets. Pursuant to GASB Statement No. 51, the retroactive reporting of permanent easements is not required and therefore, the City has elected not to report permanent easements acquired in years prior to 2010. N. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation, sick pay and flex leave benefits. All liabilities for vacation leave, sick leave, flex leave and severance, both current and long- term that are attributable to services already rendered, accumulate and are more likely than not to be used for time off or otherwise paid, are recorded in the Employee Benefits Fund, an Internal Service Fund for governmental funds, and in the individual enterprise funds. The personnel ordinance limits the annual accumulation of benefits that can be accumulated from year-to-year. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. O. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. P. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and inventories. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 67 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Committed - consists of amounts that are constrained for specific purposes that are internally imposed by formal action (resolution) of the City Council. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Assigned - consists of internally imposed constraints. These constraints reflect the specific purpose for which it is the City’s intended use. These constraints are established by the City Council and/or management. Pursuant to City Council Resolution, the City’s Chief Financial Officer and/or City Manager is authorized to establish assignments of fund balance. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, then use unrestricted resources as they are needed. When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order; 1) committed 2) assigned and 3) unassigned. Q. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses, and are reported as internal charges. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. R. NET POSITION Net position represents the difference between assets/deferred outflows and liabilities/deferred inflows. Net position is displayed in three components. a) Net investment in capital assets – consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b) Restricted net position – consist of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c) Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets”. S. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 68 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 T.DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government has two items that qualify for reporting in this category. They are the pension and OPEB related deferred outflows of resources reported in the government-wide statement of net position and the proprietary funds statement of net position. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has lease, pension, and OPEB related deferred inflows of resources reported in the government-wide statement of net position and the proprietary funds statement of net position. The government also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes, special assessments, bond reimbursement payments not yet due and other miscellaneous unavailable revenue. U. DEFINED BENEFIT PENSION PLAN COST SHARING MULTIPLE – EMPLOYER PLANS For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA, except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. V. LEASE RECEIVABLE The City's lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the commencement of the lease in an amount equal to the initial recording of the lease receivable, and is recognized as revenue over the lease term. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 69 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 2 DEPOSITS AND INVESTMENTS A.DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral – Minnesota Statute 118.A.03 identifies allowable forms of collateral. Custodial Credit Risk - deposits – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The fair value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit risk. As of December 31, 2024, the bank balance of the City’s deposits was $3,194,052 all of which was covered by federal depository insurance or by collateral pledged and held in the City’s name. B. INVESTMENTS Subject to rating, yield, maturity and issuer requirements as prescribed by statue, Minnesota Statutes 118A.04 and 118A.05 authorized the City to invest in United States securities, state and local securities, commercial paper, time deposits, temporary general obligation bonds, repurchase agreements, Minnesota joint powers investment trust and guaranteed investment contracts. At December 31, 2024, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1-5 6-10 11-15 4M - External Investment Pool AAAm 55,387,530$ 55,387,530$ -$ -$ -$ 4MP - External Investment Pool AAAm 15,480,134 15,480,134 - - - Money Market Funds AAA 2,227,240 2,227,240 - - - Certificates of Deposit NR 3,856,501 732,244 3,124,257 - - Asset Backed Securities NR 9,472,924 - 6,163,679 3,309,245 - Municipal Bonds AA- - AAA 12,806,065 2,623,739 10,182,326 - - US Treasuries AA+7,090,531 7,090,531 - - - US Agencies AA+2,278,358 1,397,355 881,003 - - Total 108,599,283$ 84,938,773$ 20,351,265$ 3,309,245$ -$ Total investments 108,599,283$ Deposits 2,021,967 Cash on hand 2,220 Total cash and investments 110,623,470$ Investment Maturities (in Years) 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. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted market prices. Level 2 investments are valued using inputs that are based on matrix pricing models. Level 3 investments are valued using inputs that are unobservable. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 70 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 The City has the following recurring fair value measurements as of December 31, 2024: Investment Type 12/31/2024 Level 1 Level 2 Level 3 Investments at fair value: Certificates of Deposit 3,856,501$ -$ 3,856,501$ -$ Asset Backed Securities 9,472,924 - 9,472,924 - Municipal Bonds 12,806,065 - 12,806,065 - US Treasuries 7,090,531 7,090,531 - - US Agencies 2,278,358 - 2,278,358 - Total/Subtotal 35,504,379 7,090,531$ 28,413,848$ -$ Investments not categorized: 4M - External Investment Pool 55,387,530 4MP - External Investment Pool 15,480,134 Money Market Funds 2,227,240 Total 108,599,283$ Fair Value Measurement Using The 4M fund is an external investment pool which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. For the 4M Multi-Class Fund (which includes the Liquid Asset Class and the PLUS Class), the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) of $1 per share. Investments are measured at amortized cost in accordance with GASB Statement No. 79. The 4M Liquid Asset (4M) Class has no redemption requirements. The 4M PLUS (4MP) Class requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest on the amount withdrawn. C. INVESTMENT RISKS Custodial credit risk – investments – For investments in securities, custodial credit risk is the risk that in the event of failure of the counterparty to a transaction, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. Investments in investment pools and money markets are not evidenced by securities that exist in physical or book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s investment policy requires the City’s security broker/dealers to provide its audited financial statements, proof of NASD certification, proof of state registration, and certification of having read, understood and agreed to comply with the City’s investment policy. Investments in securities are held by the City’s broker-dealer of which $500,000 is insured through SIPC. Each broker-dealer has provided additional protection by providing additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealers accounts. Interest rate risk – Interest rate risk is the risk that changes in interest rates of debt investments could adversely affect the fair value of an investment. The City’s investment policy states the investment portfolio will remain sufficiently liquid to enable the City to meet all operating and capital requirements that might be reasonably anticipated. The maximum maturity of investments shall not extend beyond five years, unless related to specific cash flow needs. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 71 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Credit risk – Credit risk is the risk that an issuer or other counterparty to an investment will be unable to fulfill its obligation to the holder of the investment. State law limits investments to commercial paper to those rated in the highest quality category by at least two nationally recognized rating agencies; in any security of the State of Minnesota or any of its municipalities which is rated “A” or better by a national bond rating service for general obligation and rated “AA” or better for a revenue obligation; a general obligation of the Minnesota Housing Finance Agency to those rated “A” or better by a national bond rating agency; mutual funds or money market funds whose investments are restricted to securities described in MS 118A.04. The City’s investment policy does not place further restrictions on investment options. Concentration of credit risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states no more than 50% of its investment portfolio can be invested in municipal bonds or MHFA securities. Investments in a single issuer exceeding 5% of the City’s overall cash and investment portfolio are in various holdings as follows: US Treasuries 6.53% US Agency - Federal Home Loan Mortgage Corp. LP 6.00% Note 3 RECEIVABLES A.LOANS RECEIVABLE The City has made loans to local businesses and individuals that qualify for various loan programs. The businesses and individuals pay varying installments on the loans. Depending on the loan program, some of the loans are secured by an interest in the property. Certain loans are forgivable after 30 years if specific criteria are met. At this time, information is not available to develop an estimate for any loans which may be forgiven. Therefore, no allowance has been recorded. As loan maturity dates approach, the City will evaluate whether an allowance for forgivable loans should be recorded in the financial statements. As of December 31, 2024, the loans receivable balance was $13,875,006. Significant receivable balances not expected to be collected within one year of December 31, 2024 are as follows: Special Interfund Loans Assessments Property Loans Pledges Receivable Receivable Taxes Receivable Receivable Total Major Funds: General Fund -$ -$ 114,500$ -$ -$ 114,500$ Housing Rehabilitation Fund 3,635,130 7,477,900 - - - 11,113,030 Debt Service Fund 1,120,000 - - - - 1,120,000 Development EDA Fund 1,947,064 - - 2,721,896 - 4,668,960 Permanent Improvement Fund - 556,000 - - - 556,000 Redevelopment District Fund 2,619,714 - - - - 2,619,714 Capital Fund - - - - 550,000 550,000 Water Fund - 61,500 - - - 61,500 Sewer Fund - 377,700 - - - 377,700 Nonmajor Governmental Funds 3,668,683 270,400 4,500 1,800,000 - 5,743,583 Total 12,990,591$ 8,743,500$ 119,000$ 4,521,896$ 550,000$ 26,924,987$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 72 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 4 UNAVAILABLE REVENUE Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Unavailable Delinquent property taxes receivable (General Fund)332,497$ Delinquent property taxes receivable (Nonmajor Funds)12,942 Special assessments not yet due (Housing Rehabilitation Fund) 7,949,676 Special assessments not yet due (Permanent Improvement Fund) 695,630 Special assessments not yet due (Nonmajor Funds)270,998 Bond reimbursement payments not yet due (Debt Service Funds) 1,195,949 Due from other governments (Capital Fund)100,407 Other miscellaneous (Development EDA Fund) 94,471 Other miscellaneous (Redevelopment District Fund)1,976,708 Other miscellaneous (Capital Fund)650,000 Other miscellaneous (Nonmajor Funds)75,292 Total unavailable revenue for governmental funds 13,354,570$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 73 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2024 is as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated: Land 17,255,135$ -$ -$ 17,255,135$ Permanent easements 1,441,876 - - 1,441,876 Construction in progress 1,675,577 16,011,954 4,735,373 12,952,158 Total capital assets, not being depreciated 20,372,588 16,011,954 4,735,373 31,649,169 Capital assets, being depreciated and amortized: Buildings and structures 70,204,775 - - 70,204,775 Improvements other than buildings 54,725,722 1,141,437 - 55,867,159 Infrastructure 80,071,911 4,907,822 - 84,979,733 Machinery, furniture and equipment 14,350,143 1,349,425 68,529 15,631,039 Fleet 11,664,238 2,037,206 777,755 12,923,689 Lease assets - fleet 148,797 - - 148,797 Lease assets - machinery, furniture and equipment 50,905 1,356,187 50,905 1,356,187 Subscription-based IT arrangements 258,303 - - 258,303 Total capital assets, being depreciated and amortized 231,474,794 10,792,077 897,189 241,369,682 Less accumulated depreciation and amortization for: Buildings and structures 24,102,549 1,694,367 - 25,796,916 Improvements other than buildings 25,172,983 2,125,691 - 27,298,674 Infrastructure 39,002,490 4,329,187 - 43,331,677 Machinery, furniture and equipment 9,830,185 935,560 68,529 10,697,216 Fleet 7,340,934 1,010,548 777,755 7,573,727 Lease assets - fleet 51,536 30,695 - 82,231 Lease assets - machinery, furniture and equipment 45,940 244,310 50,905 239,345 Subscription-based IT arrangements 96,011 120,440 - 216,451 Total accumulated depreciation and amortization 105,642,628 10,490,798 897,189 115,236,237 Total capital assets being depreciated and amortized - net 125,832,166 301,279 - 126,133,445 Governmental activities capital assets - net 146,204,754$ 16,313,233$ 4,735,373$ 157,782,614$ Beginning Ending Balance Increases Decreases Reclass Balance Business-type activities: Capital assets, not being depreciated: Land 515,082$ -$ -$ -$ 515,082$ Construction in progress 362,677 8,680,074 4,069,650 - 4,973,101 Total capital assets, not being depreciated 877,759 8,680,074 4,069,650 - 5,488,183 Capital assets, being depreciated: Buildings and structures 5,088,651 - - - 5,088,651 Improvements other than buildings 10,505,447 - - (501,930) 10,003,517 Infrastructure 87,252,594 4,197,239 - 501,930 91,951,763 Machinery, furniture and equipment 9,199,457 245,515 - - 9,444,972 Total capital assets, being depreciated 112,046,149 4,442,754 - - 116,488,903 Less accumulated depreciation for: Buildings and structures 4,673,472 24,981 - - 4,698,453 Improvements other than buildings 5,383,518 391,398 - - 5,774,916 Infrastructure 36,409,528 1,457,636 - - 37,867,164 Machinery, furniture and equipment 5,664,463 313,065 - - 5,977,528 Total accumulated depreciation 52,130,981 2,187,080 - - 54,318,061 Total capital assets being depreciated - net 59,915,168 2,255,674 - - 62,170,842 Business-type activities capital assets - net 60,792,927$ 10,935,748$ 4,069,650$ -$ 67,659,025$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 74 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government 235,012$ Public safety 443,017 Operations and recreation 5,361,740 Public information 1,884,420 Social and economic development 96,063 Internal service 2,470,546 Total depreciation and amortization expense - governmental activities 10,490,798$ Business-type activities: Water 1,121,101$ Sewer 242,460 Storm water 823,519 Total depreciation expense - business-type activities 2,187,080$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 75 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 6 CITY INDEBTEDNESS The City issues general obligation bonds, to provide funds for the acquisition and construction of major capital facilities. The City’s long-term liabilities are segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the City. As of December 31, 2024, long-term liabilities of the City consisted of the following: Final Authorized Issue Maturity Interest And Outstanding Date Date Rates Issued 12/31/2024 Governmental Activities: General Long-Term Debt: General Improvement Bonds: G.O. Improvement Bonds Series 2014A 12/18/2014 2/1/2026 2.00%5,070,000$ 1,100,000$ G.O. Improvement Bonds Series 2016A 7/14/2016 2/1/2027 1.375 - 2.375% 10,000,000 3,415,000 G.O. Improvement Bonds Series 2017A 7/13/2017 2/1/2028 2.125 - 3.00% 3,430,000 1,495,000 G.O. Improvement Bonds Series 2018A 6/14/2018 2/1/2033 3.00 - 4.00% 2,020,000 1,105,000 G.O. Improvement Bonds Series 2019A 4/10/2019 2/1/2035 2.00 - 4.00% 22,220,000 19,720,000 G.O. Improvement Bonds Series 2019B 11/26/2019 2/1/2032 3.00 - 5.00% 7,585,000 5,520,000 G.O. Improvement Bonds Series 2020A 11/10/2020 2/1/2042 2.00 - 4.00% 10,505,000 9,475,000 G.O. Improvement Bonds Series 2021A 4/15/2021 2/1/2038 1.15 - 2.00% 12,385,000 11,405,000 G.O. Improvement Bonds Series 2024A 6/25/2024 2/1/2040 3.45 - 3.90% 3,050,000 3,050,000 Total General Improvement Bonds 76,265,000 56,285,000 G.O. Special Assessment Bonds: G.O. Improvement Bonds Series 2012A HIA 10/17/2012 2/1/2033 0.75 - 3.90% 1,290,000 670,000 G.O. Improvement Bonds Series 2019C HIA 11/26/2019 2/1/2028 2.00 - 2.20% 2,200,000 965,000 G.O. Improvement Bonds Series 2022B 9/7/2022 2/1/2043 3.5 - 4.25% 4,900,000 4,810,000 Total G.O. Special Assessment Bonds 8,390,000 6,445,000 G.O. Revenue bonds: G.O. Improvement Refunding Bonds Series 2022A 6/21/2022 2/1/2037 3.8 - 4.125% 1,345,000 1,190,000 Total G.O. Revenue Bonds 1,345,000 1,190,000 Issuance premiums (discounts)N/A N/A N/A N/A 2,709,837 Total - bonded indebtedness 86,000,000 66,629,837 Lease liability N/A N/A .31 - 7.28% N/A 1,155,418 Subscription liability N/A N/A 2.31 - 2.65% N/A 17,420 Compensated absences payable N/A N/A N/A N/A 4,681,049 Other post employment benefits N/A N/A N/A N/A 6,112,800 Net pension liability - GERF N/A N/A N/A N/A 8,724,424 Net pension liability - PEPFF N/A N/A N/A N/A 10,365,684 Total - net pension liability N/A 19,090,108 Total governmental activities long-term liabilities 86,000,000 97,686,632 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 76 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Business-Type Activities: General Obligation Revenue Bonds: Utility Revenue Bonds Series 2014A 12/18/2014 2/1/2026 2.00%4,930,000$ 1,070,000$ Utility G.O. Improvement Bonds Series 2017A 7/13/2017 2/1/2033 2.125 - 3.00% 4,985,000 3,230,000 Utility Refunding Revenue Bonds Series 2017A 7/13/2017 2/1/2025 2.125 - 3.00% 1,485,000 210,000 Utility G.O. Revenue Bonds Series 2018A 6/14/2018 2/1/2033 3.00 - 4.00% 6,780,000 4,450,000 Utility G.O. Revenue Bonds Series 2019B 11/26/2019 2/1/3030 3.00 - 5.00% 7,520,000 4,950,000 Utility G.O. Revenue Bonds Series 2020A 11/10/2020 2/1/2036 2.00 - 4.00% 5,035,000 4,260,000 Utility G.O. Revenue Bonds Series 2024B 9/12/2024 2/1/2040 2.54 - 3.49% 5,750,000 5,750,000 Total General Obligation Revenue Bonds 36,485,000 23,920,000 Issuance premiums (discounts)N/A N/A N/A N/A 1,679,102 Total - bonded indebtedness 36,485,000 25,599,102 Compensated absences payable N/A N/A N/A N/A 203,626 Pollution remediation liability N/A N/A N/A N/A 375,000 Total business-type activities long-term liabilities 36,485,000 26,177,728 Total long-term liabilities 122,485,000$ 123,864,360$ GOVERNMENTAL ACTIVITIES Annual debt service requirements to maturity for the governmental activities long-term debt are as follows: Year Ending December 31 Principal Interest Principal Interest Principal Interest 2025 5,085,000$ 1,540,200$ 515,000$ 230,550$ 70,000$ 45,941$ 2026 5,400,000 1,387,555 525,000 215,063 75,000 43,041 2027 5,230,000 1,233,258 545,000 198,853 80,000 39,941 2028 5,390,000 1,052,930 395,000 183,435 80,000 36,741 2029 5,200,000 867,699 280,000 171,508 85,000 33,441 2030 5,140,000 702,474 290,000 161,476 85,000 30,126 2031 4,465,000 566,971 300,000 150,903 90,000 26,801 2032 4,575,000 454,894 315,000 139,700 95,000 23,286 2033 3,405,000 357,497 320,000 127,780 100,000 19,481 2034 3,180,000 272,463 245,000 117,003 100,000 15,481 2035 3,265,000 184,988 255,000 107,248 105,000 11,381 2036 1,195,000 125,875 265,000 96,848 110,000 7,013 2037 1,225,000 97,200 275,000 85,979 115,000 2,372 2038 1,250,000 68,700 290,000 74,538 - - 2039 655,000 45,750 300,000 62,440 - - 2040 670,000 28,450 310,000 49,783 - - 2041 475,000 14,950 325,000 36,444 - - 2042 480,000 5,100 340,000 22,313 - - 2043 - - 355,000 7,544 - - Total 56,285,000$ 9,006,954$ 6,445,000$ 2,239,408$ 1,190,000$ 335,046$ G.O. Improvement Bonds G.O. Special Assessment Bonds G.O. Revenue Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 77 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 BUSINESS-TYPE ACTIVITIES Annual debt service requirements to maturity for the business-type long-term debt are as follows: Year Ending December 31 Principal Interest 2025 2,515,000$ 771,731$ 2026 2,590,000 703,375 2027 2,225,000 611,838 2028 2,310,000 523,863 2029 2,405,000 431,575 2030 2,500,000 344,213 2031 1,620,000 278,075 2032 1,680,000 226,850 2033 1,720,000 175,900 2034 795,000 138,150 2035 815,000 113,900 2036 840,000 88,900 2037 450,000 67,200 2038 465,000 48,900 2039 485,000 29,900 2040 505,000 10,100 Total 23,920,000$ 4,564,470$ G.O. Revenue Bonds It is not practicable to determine the specific year for payment of long-term accrued compensated absences. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 78 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2024 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds 58,160,000$ 3,050,000$ 4,925,000$ 56,285,000$ 5,085,000$ G.O. tax increment bonds 570,000 - 570,000 - - G.O. special assessment bonds 6,870,000 - 425,000 6,445,000 515,000 G.O. revenue bonds 1,260,000 - 70,000 1,190,000 70,000 Add: Premiums on bonds 2,827,947 188,926 300,600 2,716,273 - Discounts on bonds (7,226) - (790) (6,436) - Total bonds payable 69,680,721 3,238,926 6,289,810 66,629,837 5,670,000 Lease liability 105,354 1,356,186 306,122 1,155,418 290,329 Subscription liability 136,118 - 118,698 17,420 17,420 Compensated absences *4,413,112 267,937 - 4,681,049 3,798,863 Other post-employment benefits * 5,694,659 418,141 - 6,112,800 296,959 Net pension liability *27,143,398 - 8,053,290 19,090,108 - Total governmental activity long-term liabilities 107,173,362$ 5,281,190$ 14,767,920$ 97,686,632$ 10,073,571$ Business-type activities: Bonds payable: G.O. revenue bonds 20,600,000$ 5,750,000$ 2,430,000$ 23,920,000$ 2,515,000$ Add: Premiums on bonds 1,542,977 376,715 240,590 1,679,102 - Total bonds payable 22,142,977 6,126,715 2,670,590 25,599,102 2,515,000 Compensated absences *258,555 - 54,929 203,626 175,958 Pollution remediation liability - 375,000 - 375,000 - Total business-type activity long-term liabilities 22,401,532$ 6,501,715$ 2,725,519$ 26,177,728$ 2,690,958$ * The changes in compensated absences, other post-employment benefits, and net pension liability are presented as a net change. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 79 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Percent of Debt service Remaining Principal Pledged Use of total as a % of Pledged Principal and Interest Revenue Bond Issue Proceeds Type debt service net revenues Through and Interest paid received G.O. Improvement Bonds Series 2012A Housing Improvement Area Fee 100% 99% 2033 787,204 89,385 42,116 G.O. Improvement Bonds Series 2010A / Refunding 2019C Housing Improvement Area Fee 100% 100% 2028 1,000,738 292,535 33,682 Tax Increment Refunding Bonds Series 2008B Street Improvements TIF 100%100%2024 - 583,181 583,181 Utility Revenue Bonds Series 2014A Utility Infrastructure Projects Utility charges 100% 100% 2026 1,091,500 541,550 541,550 Utility Revenue Bonds Series 2017A Utility Infrastructure Projects Utility charges 100% 100% 2033 3,649,788 404,550 404,550 Utility Refunding Revenue Bonds Series 2017A Utility Infrastructure Projects Utility charges 100% 100% 2025 211,150 212,150 212,150 Utility Revenue Bonds Series 2018A Utility Infrastructure Projects Utility charges 100% 100% 2033 5,087,200 560,500 560,500 Utility Revenue Bonds Series 2019B Utility Infrastructure Projects Utility charges 100% 100% 2030 5,624,950 949,550 949,550 G.O. Bonds Series 2020A - Utility portion Utility Infrastructure Projects Utility charges 100% 100% 2036 4,947,075 412,950 412,950 G.O. Bonds Series 2020A - Levy portion Bikeway, Bridge, Pavement Management Tax Levy 100% n/a 2042 11,345,975 805,450 860,948 G.O. Bonds Series 2021A Park Improvements, Louisiana Bridge, Wooddale Bikeway, Pavement Management Tax Levy 100% n/a 2038 12,648,251 1,075,018 1,135,436 2022A G.O. Refunding Bonds Louisiana Court Project Operating revenues of Louisiana Court 100% n/a 2037 1,525,048 118,741 1,619 2024A G.O. Bonds Street Improvements Tax Levy 100%n/a 2043 4,178,170 - - 2024B G.O. Revenue Bonds Utility Infrastructure Projects Utility Charges 100%n/a 2040 7,872,806 - - Revenue Pledged Current Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 80 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 7 DEFINED BENEFIT PENSION PLANS A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). Plan provisions are established and administered according to Minnesota Statutes, Chapters 353, 353D, 353E, 353G and 356. Minnesota Statutes Chapter 356 defines each plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Plan (General Plan) Membership in the General Plan includes employees of counties, cities, townships, schools in non- certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. 2. Public Employees Police and Fire Retirement Plan (Police and Fire Plan) Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan or local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the entity’s governing body. The resolution must state that the position meets plan requirements. B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is “vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. 1. General Employees Plan Benefits The General Employees Plan requires three years of service to vest. Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989 receive the higher of the Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2% of the highest average salary for each of the first ten years of service and 1.7% for each additional year. Under the Level formula, General Plan members receive 1.7% of the highest average salary for all years of service. For members hired prior to July 1, 1989, a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by 0.25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25% for each Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 81 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. The 2024 annual increase was 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a prorated increase. 2. Police and Fire Plan Benefits Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50% vested after five years and 100% vested after ten years. After five years, vesting increased by 10% each full year of service until members are at 100% vested after ten years. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417% each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a prorated increase. C. CONTRIBUTIONS Minnesota Statutes Chapters 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. General Employees Fund Contributions General Plan members were required to contribute 6.50% of their annual covered salary in fiscal year 2024 and the City was required to contribute 7.50% for General Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2024 were $1,537,072. The City’s contributions were equal to the required contributions as set by state statute. 2. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2024 and the City was required to contribute 17.70% for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2024 were $2,008,062. The City’s contributions were equal to the required contributions as set by state statute. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 82 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 D. PENSION COSTS 1. General Employees Fund Pension Costs At December 31, 2024, the City reported a liability of $8,724,424 for its proportionate share of the General Employee’s Fund net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $225,596. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2360% at the end of the measurement period and 0.2449% for the beginning of the period. City’s proportionate share of the net pension liability 8,724,424$ State of Minnesota’s proportionate share of the net pension liability associated with the City 225,596 Total 8,950,020$ For the year ended December 31, 2024, the City recognized pension expense of $681,385 for its proportionate share of the General Plan’s pension expense. In addition, the City recognized an additional $6,048 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $401,436 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the General Employees Fund. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 83 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 At December 31, 2024, the City reported General Employees Fund deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 819,338$ -$ Changes in actuarial assumptions 41,792 3,302,035 Net difference between projected and actual earnings on pension plan investments - 2,507,002 Changes in proportion 330,303 550,589 Employer contributions subsequent to the measurement date 766,561 - Total 1,957,994$ 6,359,626$ The $766,561 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31, Expense 2025 (2,767,118)$ 2026 (497,074) 2027 (1,235,329) 2028 (668,672) 2029 - Thereafter - 2.Police and Fire Fund Pension Costs At December 31, 2024, the City reported a liability of $10,365,684 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2024 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.7879% at the end of the measurement period and 0.7788% for the beginning of the period. The State of Minnesota contributed $37.4 million to the Police and Fire Fund during the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 84 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Retirement System) is 90% funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $395,136. City’s proportionate share of the net pension liability 10,365,684$ State of Minnesota’s proportionate share of the net pension liability associated with the City 395,136 Total 10,760,820$ For the year ended December 31, 2024, the City recognized pension expense of $2,014,812 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional $38,370 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the Police and Fire Fund special funding situation. 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 $28.4 million in supplemental state aid, because this contribution was not considered to meet the definition of a special funding situation. The City recognized $223,764 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the Police and Fire Fund. At December 31, 2024, the City reported Police and Fire Fund deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience 4,046,436$ -$ Changes in actuarial assumptions 11,455,116 15,264,650 Net difference between projected and actual earnings on pension plan investments - 3,401,917 Changes in proportion 405,137 191,669 Employer contributions subsequent to the measurement date 997,675 - Total 16,904,364$ 18,858,236$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 85 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 The $997,675 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31, Expense 2025 (505,937)$ 2026 2,742,760 2027 (1,490,797) 2028 (3,998,092) 2029 300,519 Thereafter - The net pension liability will be liquidated by the Employee Benefits internal service fund. E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2024 actuarial valuation was determined using the entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.25% per year Investment Rate of Return 7.00% The long-term investment rate of return is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7.00% is within that range. Benefit increases after retirement are assumed to be 1.25% for the General Plan and 1.00% for the Police and Fire Plan. Salary growth assumptions in the General Plan range in annual increments from 10.25% after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range in annual increments from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for General Plan were based on the Pub-2010 General Employee Mortality Table. Mortality rates for Police and Fire Plan were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for General Plan are reviewed every four years. The General Plan was last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023 actuarial valuation. The Police and Fire Plan was reviewed in 2024. PERA anticipates the experience study will be approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 86 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 The following changes in actuarial assumptions and plan provisions occurred in 2024: General Employees Fund Changes in Actuarial Assumptions:  Rates of merit and seniority were adjusted, resulting in slightly higher rates.  Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members.  Minor increase in assumed withdrawals for males and females.  Lower rates of disability.  Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study.  Minor changes to form of payment assumptions for male and female retirees.  Minor changes to assumptions made with respect to missing participant data. Changes in Plan Provisions:  The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. Police and Fire Fund Changes in Plan Provisions:  The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for one year.  The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 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: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 33.5%5.10% International equity 16.5%5.30% Fixed income 25%0.75% Private markets 25%5.90% Total 100% Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 87 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 F.DISCOUNT RATE The discount rate used to measure the total pension liability in 2024 was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Plan and Police and Fire Plan 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. G. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower (6.00%) or one percentage point higher (8.00%) than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate City's Proportionate share of the GERF net pension liability 19,055,546$ 8,724,424$ 226,134$ City's Proportionate share of the PEPFF net pension liability 24,496,137$ 10,365,684$ (1,238,374)$ H.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 at www.mnpera.org. I. PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2024 is as follows: General Plan 681,385$ Police and Fire Plan 2,014,812 Total 2,696,197$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 88 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 8 DEFINED CONTRIBUTION PLAN Four council members of the City of St. Louis Park, Minnesota, are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D and 356, 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 contributions 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% (.0025) of the assets in each member’s account annually. Total contributions made by the City during fiscal year 2024 were: Required Employer Employee (Pension Expense) Employee Employer Rate 3,204$ 3,204$ 5%5%5% Contribution Amount Percentage of Covered Payroll Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A.PLAN DESCRIPTION In addition to providing the pension benefits described in Notes 7 and 8, the City provides post- employment health care benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single-employer defined benefit OPEB plan administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. BENEFITS PROVIDED The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Police officers, police, sergeants, police lieutenants, dispatchers, and firefighters age 50 and over with 3 years of service, or age 65 with 1 year of service, may continue medical and dental coverage at their own expense. Non-union and 49ers union employees age 55 with 3 years of service, age 65 with 1 year of service, any age with 30 years of service, or those whose age plus service is at least 90 may continue medical and dental coverage at their own expense. Employees may obtain dependent coverage at retirement only if the employee was receiving dependent coverage immediately prior to retirement. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 89 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer. C. PARTICIPANTS As of the December 31, 2022 valuation date, participants of the plan consisted of: Active employees electing coverage 277 Active employees waiving coverage 2 Retirees electing coverage 28 Total 307 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $6,112,800 was measured at December 31, 2023 and was determined by an actuarial valuation as of December 31, 2022. Changes in the total OPEB liability during 2024 were: Changes for the year: Service cost 320,296$ Interest cost 237,569 Changes of benefit terms - Differences between expected and actual experience (487) Changes in assumptions 158,893 Benefit payments (298,130) Net changes 418,141 Balance - beginning of year 5,694,659 Balance - end of year 6,112,800$ There were no plan changes since the previous measurement date of December 31, 2022. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 90 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the December 31, 2022 actuarial valuation, for reporting date December 31, 2024 was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation rate 2.50% Salary increases Based on most recently disclosed assumptions for the pension plan in which the employee participates Discount rate 3.77% Index rate for 20-year tax-exempt muncipal bonds 3.77% Healthcare trend rates 6.90% in 2024 gradually decreasing over several decades to an ultimate rate of 3.90% in 2075 and later years Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return were based on published rate information for 20-year, tax exempt municipal bonds as of the measurement date. (Fidelity 20-year Municipal GO AA Index) Mortality rates for general employees were based on Pub-2010 General mortality tables with projected mortality improvements based on scale MP-2021, and other adjustments. Mortality rates for Police and Fire employees were based on the Pub-2010 Public Safety mortality tables with projected mortality improvements based on scale MP-2021, and other adjustments. The actuarial assumptions used in the valuation for reporting date December 31, 2024 are similar to those used to value pension liabilities for Minnesota public employees. The state pension plans base their assumptions on periodic experience studies. Changes in assumptions and other inputs since the prior measurement date include: The discount rate was changed from 4.05% to 3.77% based on updated 20-year municipal bond rates. F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE The following table presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1% lower or 1% higher than the current discount rate of 3.77%: 1% Decrease Current Discount Rate 1% Increase Total OPEB liability 6,730,328$ 6,112,800$ 5,570,608$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 91 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN HEALTHCARE COST TREND RATES The following table 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 (5.90% decreasing to 2.90%) or 1% higher (7.90% decreasing to 4.90%) than the current healthcare cost trend rates: Current Healthcare 1% Decrease Cost Trend Rates 1% Increase Total OPEB liability 5,381,839$ 6,112,800$ 6,977,801$ H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2024, the City recognized $119,701 of OPEB expense. At December 31, 2024, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between expected 1,130,586$ 3,551$ and actual liability Changes of assumption 369,577 966,420 Contributions between the measurement date and reporting date 286,008 - Total 1,786,171$ 969,971$ $286,008 of the deferred outflows of resources relates to contributions subsequent to the measurement date will be recognized as a reduction of the OPEB liability in the year ending December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended OPEB December 31, Expense 2025 145,974$ 2026 133,922 2027 125,822 2028 112,402 2029 104,201 Thereafter (92,129) 530,192$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 92 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 10 INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS The City has established interfund loans to finance infrastructure improvements, project reimbursements, housing rehabilitation loans and to provide initial financing for TIF districts. A summary at December 31, 2024 is as follows: Interfund Interfund Loan Loan Receivable Payable Major Funds: Housing Rehabilitation -$ 995,701$ Development EDA 3,159,100 - Redevelopment District - 3,963,399 Nonmajor Governmental Funds 1,800,000 - Total 4,959,100$ 4,959,100$ The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as due from other funds in the advancing fund, and a due to other fund in the fund with the deficit, until adequate resources are received. At December 31, 2024, amounts due from other funds and due to other funds were $0. Interfund transfers at December 31, 2024 are as follows: Housing Development Nonmajor Internal General Rehabilitation Debt Service EDA Capital Fund Governmental Service Funds Totals Transfers out: General -$ -$ -$ -$ -$ 28,700$ 2,533,414$ 2,562,114$ Housing Rehabilitation 10,067 - 669,946 - - - - 680,013 COVID Fund 4,028,714 - -- - - - 4,028,714 Development EDA 35,647 - -- - - - 35,647 Redevelopment District - - 583,681 68,654 1,626,067 2,212,131 - 4,490,533 Nonmajor Governmental - 718,564 - - - - - 718,564 Water 763,938 - - - - - - 763,938 Sewer 1,026,181 - - - - - - 1,026,181 Storm Water 383,565 - - - - - - 383,565 Solid Waste 261,742 - - - - - - 261,742 Total transfers in 6,509,854$ 718,564$ 1,253,627$ 68,654$ 1,626,067$ 2,240,831$ 2,533,414$ 14,951,011$ Fund Transfers in Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to a debt service fund in accordance with bond documents, (3) move funds in accordance with the City’s adopted capital improvement plan to support project costs, and (4) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with City policy. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 93 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 11 LEASE AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENT DISCLOSURES A.LESSOR LEASES The City leases space on its water towers for cellular tower antenna sites. There are ten leases with terms ranging from 108 to 240 months, including up to four renewal periods of 60 months each at the lessee’s option. The lease terms include options which the City considers the likelihood of being exercised to be greater than 50%. The agreements call for annual lease payments ranging from $8,979 to $69,643. The lease receivables are measured at the present value of future minimum lease payments expected to be received during the lease term at discount rates of 1.085% to 3.398%. The City has a ground lease with a term of 142 months including two, 60 month extensions at the lessee’s option. The agreement calls for annual payments of $15,764. The lease receivable is measured at the present value of future minimum lease payments expected to be received during the lease term at a discount rate of .31%. The City has a vehicle towing and impounding lease agreement with a term of 36 months. The agreement calls for monthly payments starting at $2,100 and payments increasing by the Consumer Price Index annually. The lease receivable is measured at the present value of future minimum lease payments expected to be received during the lease term at a discount rate of .22%. At December 31, 2024, the City recorded lease receivables of $5,323,512 and deferred inflows for these arrangements of $5,031,390. Lease related inflows of resources (revenue) recognized during the year ended December 31, 2024, was $479,675 including interest revenue of $84,969. There were no variable revenues associated with these agreements. B. LESSEE LEASES As of December 31, 2024, the City has six outstanding vehicle leases. Each lease requires 60 monthly payments from commencement of the lease, ranging from $360 to $508. The lease liability is measured at discount rates ranging from 0.31% to 7.28%. The City also has one office equipment lease for a piece of office equipment. The lease has a term of 60 months with no extension options. The lease requires monthly payments of $3,410. The lease liability is measured at a discount rate of 2.616%. The city also has two outstanding police equipment leases. Each lease requires five annual payments from commencement of the lease, ranging from $43,455 to $199,994. The lease liability is measured at a discount rate of 2.282%. As a result of the leases, the City has recorded right-to-use lease assets with a net book value of $1,183,408 as of December 31, 2024. The lease liability and right-to-use lease asset for the year ended December 31, 2024 are shown in Note 6 and Note 5, respectively. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 94 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Scheduled lease liability payments are as follows: Year Ending December 31 Principal Interest 2025 290,330$ 27,870$ 2026 294,787 20,321 2027 281,550 13,022 2028 278,564 6,271 2029 10,187 44 Total 1,155,418$ 67,528$ Lease Liability Governmental Activities C. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS As of December 31, 2024, the City had one outstanding right-to-use subscription-based IT arrangement for the use of Ricoh – Bullwall RansomCare server. The agreement expires on June 1, 2026 and is reported at the present value of future minimum payments, discounted at a 2.31% rate (which is the City’s estimated borrowing rate over the same time period). The subscription liability and subscription-based IT asset for the year ended December 31, 2024 are shown in Note 6 and Note 5, respectively. Scheduled subscription liability payments are as follows: Year Ending December 31 Principal Interest 2025 17,420$ 402$ Total 17,420$ 402$ Subscription Liability Governmental Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 95 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 12 FUND BALANCE A.CLASSIFICATIONS At December 31, 2024, a summary of the governmental fund balance classifications are as follows: Nonspendable Restricted Committed Assigned Unassigned General Fund Prepaid items 376,821$ -$ -$ -$ -$ Inventories 273,471 - - - - E-911 purposes - 32,544 - - - Public safety aid - 1,492,938 - - - Police - community engagement - -- 200,000 - Tax court petitions - -- 500,000 - Weather emergencies - -- 150,000 Future budgeted years - -- 864,823 Unassigned - -- 24,737,085 Housing Rehabilitation Prepaid items 323 - - - - Assigned - - - 7,403,418 - Debt Service - 8,250,784 - - - Development EDA Prepaid items 6,127 - - - - Redevelopment efforts - - - 19,496,514 - Permanent Improvement Fund - - - 3,027,716 - Redevelopment District - 10,513,377 - - (2,093,353) Capital Fund Prepaid items 6,575 - - - - Police and fire purposes - 1,308,236 - - - Capital projects - 824,316 - 6,224,612 - Unassigned - -- -- Nonmajor Governmental Funds: Cable TV equipment purchases 1,568 16,251 1,509,433 875,056 - Community development - 462,230 - - - Special service districts 64 - - 367,749 - Affordable housing - 11,625,161 - - - Climate investment - - 455,279 - - Opioid settlement - - 7,394 - - Total 664,949$ 34,525,837$ 1,972,106$ 39,109,888$ 22,643,732$ Unless separately displayed, constraints are not more specific than the purpose of the fund. Fund/Description Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 96 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 B.MINIMUM FUND BALANCE POLICY The City Council has formally adopted a fund balance policy for the General Fund. The policy establishes a year-end target of unassigned fund balance amount for cash flow timing needs in the range of 40-50% of the subsequent years budget expenditures. At December 31, 2024, the unassigned fund balance for the General Fund was 45% of the subsequent year’s budgeted expenditures. Note 13 COMMITMENTS AND CONTINGENCIES A.RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial insurance for risks of loss, including workers compensation, property and general liability and employee health and accident insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. PROPERTY AND CASUALTY INSURANCE Property and casualty insurance coverage is provided through the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool currently operating as a common risk management and insurance program for Minnesota cities: general liability, excess liability property, automobile, marine, crime, employee dishonesty, boiler and open meeting law. The City pays an annual premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through member premiums and reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portions of the insurance policies. The deductible amounts are $50,000 for each occurrence and a $150,000 annual aggregate. Current State Statute (Minnesota Statute subd. 466.04) provides limits of liability for the City. These limits are that the combination of defense expense and indemnification expense shall not exceed $500,000 in the case of one claimant or $1,500,000 for any number of claims arising out of a single occurrence. B. LITIGATION The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. C. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2024. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 97 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 D. TAX ABATEMENTS – PAY-AS-YOU-GO TAX INCREMENT The City EDA provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate- income housing, and economic development within the City. TIF captures the increase in tax capacity and property taxes from development or redevelopment to provide funding for the related project. The City has numerous tax increment pay-as-you-go agreements. The agreements are not a general obligation of the City and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the City. The pay-as-you-go note provides for payment to the developer a percentage of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. Principal and interest shall be paid on February 1 and August 1. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the City. The City shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment. Details of the pay-as-you-go notes are as follows: Issue Principal Interest First Final % TIF 2024 12/31/2024 District Name / Note Description Date Amount Rate Note Pymt Note Pymt Available Payments Balance Park Commons TIF District Excelsior & Grand Phase NE 6/5/2006 4,668,633 8.50% 8/1/2006 2/1/2028 97.00% 1,175,128$ 1,902,314$ Excelsior & Grand Phase NW 6/5/2006 4,079,105 8.50% 8/1/2007 2/1/2028 97.00% 1,187,146 1,598,221 Excelsior & Grand Phase E 6/5/2006 3,300,715 8.50% 8/1/2006 2/1/2028 97.00% 695,661 3,078,681 3,057,935 Elmwood Apartments TIF District Elmwood Apartments 4/4/2022 950,000 4.25% 8/1/2022 8/1/2026 95.00% 212,437 288,094 Highway 7 Corporate Center TIF District Highway 7 Business Center Note A 7/24/2008 2,100,000 1.00% 8/1/2008 8/1/2027 95.00% 136,158 267,095 Highway 7 Business Center Note B 7/24/2008 360,000 1.00% 8/1/2008 8/1/2027 95.00% 23,342 45,788 Parkway Residual TIF District Parkway Place LLC 1/12/2023 3,350,000 3.32% 8/1/2023 8/1/2036 95.00% 315,430 3,044,625 West End TIF District Duke Realty Limited Partnership 11/1/2010 21,100,000 6.75% 2/1/2012 2/1/2031 95.00% 3,483,109 20,064,945 4900 Excelsior TIF District Weidner / 4900 Excelsior Apts LLC 3/5/2019 2,800,000 4.50% 8/1/2019 2/1/2027 95.00% 637,476 - Texa Tonka TIF District Texa Tonka Apartments LLC 9/14/2023 2,600,000 3.80% 2/1/2024 2/1/2035 95.00% 234,434 2,452,073 Beltline Residences (Opus) TIF District Beltline Residences LLC 6/5/2024 5,200,000 4.25% 8/1/2024 2/1/2032 95.00% 164,115 5,070,263 Wooddale Avenue Apartments TIF District St. Louis Park AH I, LLLP 3/22/2024 470,000 4.30% 8/1/2024 2/1/2039 95.00% 8,932 468,310 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 98 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 E.LOUISIANA COURT PROJECT The City of St. Louis Park has entered into an agreement with Project for Pride in Living Louisiana Court Limited Partnership to issue $4,505,000 in General Obligation Bonds – Series 2000A for the purpose of acquiring and renovating certain rental housing facilities within the City of St. Louis Park intended primarily for low and moderate income persons and their families. During 2010, the 2000A bonds were refunded by the $1,770,000 General Obligation Refunding Bonds, Series 2010C. The City of St. Louis Park will receive monthly principal and interest payments from Project for Pride in Living Louisiana Court Limited Partnership to cover all debt service obligations of the City of St. Louis Park on a semi-annual basis. In the event that the City of St. Louis Park does not receive payment from Project for Pride in Living, the City of St. Louis Park is still under obligation to make all debt service payments. At such time, the City of St. Louis Park would pursue collection of above referenced principal and interest payments per the agreement dated May 1, 2000. As of December 31, 2024, the outstanding principal on the bonds is $1,190,000. F. CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS At December 31, 2024, the City had commitments for the following major construction projects: Remaining Contract Construction Project Name Number Commitment MSA Street Rehab Monterey Phase 2 4020-1101 184,797$ Beltline SWLRT Pedestrian Improvements 4022-2000 37,688 MSC - Parking Lot Improvements 4024-1600 1,697 2024 Alley Reconstruction Project 4024-1500 22,960 Concrete Replacement Project 4024-0003 17,189 2024 Pavement Management Project 4024-1000 173,368 Minnetonka BLVD 4023-7000 1,923,522 2,361,221$ G. POLLUTION REMEDIATION OBLIGATION At December 31, 2024, the City has recorded a cost estimate for a pollution remediation liability, which is included in the City’s long-term liabilities. The estimate totals $375,000 and relates to contamination discovered from soil testing as part of the 2025-2026 Cedar Lake Road and Louisiana Avenue design process. The City has a commitment to create a Remedial Action Plan (RAP) for cleaning up contaminated sites. The RAP was developed in 2024-2025, but removal of contamination will not occur until 2026. The estimate used to establish the liability was developed through site analysis by independent engineers retained by the City. The liability could change due to price increases or decreases, changes in technology, or other factors. There are $0 expected recoveries from other responsible parties or the City’s insurer. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 99 CITY OF ST. LOUIS PARK, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2024 Note 14 CONDUIT DEBT OBLIGATIONS From time to time, the City has issued industrial, hospital or housing revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial, commercial or housing 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. As of December 31, 2024, there were 13 revenue bonds issued. The aggregate principal amount payable as of December 31, 2024 is $153,885,524. Note 15 CHANGE IN REPORTING ENTITY During the year ended December 31, 2024, the City made changes to the presentation of capital project funds in the financial statements. Below is a summary of those changes: Permanent Improvement Fund (Major)Capital Fund (Major) Nonmajor Capital Project Funds Fund balances - January 1, as previously presented -$ (3,745,659)$ 10,781,729$ Change from nonmajor to major fund 2,788,978 7,992,751 (10,781,729) Fund balances - January 1, as adjusted 2,788,978$ 4,247,092$ -$ Governental Funds Note 16 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 102 Certain Risk Disclosures. The provisions of this Statement are effective for fiscal years beginning after June 15, 2024. Statement No. 103 Financial Reporting Model Improvements. The provisions of this Statement are effective for fiscal years beginning after June 15, 2025. Statement No. 104 Disclosure of Certain Capital Assets. The provisions of this Statement are effective for reporting periods beginning after June 15, 2025. The effect these standards may have on future financial statements is not determinable at this time. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 100 REQUIRED SUPPLEMENTARY INFORMATION Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 101 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 9 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2024 Budgeted Amounts Original Final Revenues Property taxes 34,147,654$ 34,147,654 33,978,736$ (168,918)$ Licenses and permits 4,796,822 4,796,822 4,662,869 (133,953) Intergovernmental 2,443,282 2,443,282 4,885,116 2,441,834 Charges for services 4,252,452 4,252,452 3,154,002 (1,098,450) Fines and forfeitures 190,000 190,000 14,261 (175,739) Interest income (loss)470,000 470,000 999,944 529,944 Miscellaneous 932,130 932,130 758,788 (173,342) Total revenues 47,232,340 47,232,340 48,453,716 1,221,376 Expenditures Current General government 12,078,766 12,078,766 11,230,640 (848,126) Public safety 23,236,356 23,236,356 23,270,033 33,677 Operations 6,705,651 6,705,651 5,486,786 (1,218,865) Parks and recreation 8,505,481 8,505,481 9,196,252 690,771 Miscellaneous 805,178 805,178 618,487 (186,691) Non-departmental internal charges - - 1,021,337 1,021,337 Capital outlay Public safety - - 676,041 676,041 Operations - - 273,412 273,412 Total expenditures 51,331,432 51,331,432 51,772,988 441,556 Revenues over (under) expenditures (4,099,092) (4,099,092) (3,319,272) 779,820 Other financing sources (uses) Transfers in 5,720,439 5,720,439 6,509,854 789,415 Transfers out (1,621,347) (1,621,347) (2,562,114) (940,767) Total other financing sources (uses)4,099,092 4,099,092 3,947,740 (151,352) Net change in fund balances -$ -$ 628,468 628,468$ Fund balance - January 1 27,999,214 Fund balance - December 31 28,627,682$ Actual Amounts Variance with Final Budget See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 102 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 10 BUDGETARY COMPARISON SCHEDULE - HOUSING REHABILITATION FUND For The Year Ended December 31, 2024 Budgeted Amounts Original Final Revenues Special assessments 900,000$ 900,000$ 1,238,129$ 338,129$ Interest income (loss)25,000 25,000 148,780 123,780 Total revenues 925,000 925,000 1,386,909 461,909 Expenditures Current Housing and rehabilitation 1,833,293 1,833,293 520,102 (1,313,191) Debt service Interest and other - - 39,820 39,820 Total expenditures 1,833,293 1,833,293 559,922 (1,273,371) Revenues over (under) expenditures (908,293) (908,293) 826,987 1,735,280 Other financing sources (uses) Transfers in 718,564 718,564 718,564 - Transfers out (10,067) (10,067) (680,013) (669,946) Total other financing sources (uses)708,497 708,497 38,551 (669,946) Net change in fund balances (199,796)$ (199,796)$ 865,538 1,065,334$ Fund balances - January 1 6,538,203 Fund balances - December 31 7,403,741$ Actual Amounts Variance with Final Budget See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 103 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS Last Ten Years* 2024 2023 2022 2021 2020 2019 2018 Total OPEB Liability: Service cost 320,296$ 390,372$ 369,731$ 310,714$ 273,727$ 312,898$ 273,798$ Interest cost 237,569 117,569 120,277 119,920 148,042 122,728 126,654 Differences between expected and actual experience (487) 480,554 (4,674) 1,214,476 - 269,604 - Changes in assumptions 158,893 (1,176,364) 93,700 169,400 131,969 (170,614) 120,221 Benefit payments (298,130) (233,409) (214,438) (226,393) (214,270) (211,503) (140,966) Net change in total OPEB liability 418,141 (421,278) 364,596 1,588,117 339,468 323,113 379,707 Total OPEB liability - beginning 5,694,659 6,115,937 5,751,341 4,163,224 3,823,756 3,500,643 3,120,936 Total OPEB liability - ending 6,112,800$ 5,694,659$ 6,115,937$ 5,751,341$ 4,163,224$ 3,823,756$ 3,500,643$ Covered-employee payroll $27,187,358 $25,827,906 $26,492,137 $24,937,137 $24,950,067 $23,867,837 $22,206,835 Total OPEB liability as a percentage of covered-employee payroll 22.5%22.0%23.1%23.1%16.7%16.0%15.8% * The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2018 and is intended to show a ten year trend. Additional years will be added as they become available. See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 104 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND Last Ten Years City's Proportionate State's Share of the City's Proportionate Net Pension Proportionate Plan City's City's Share (Amount) Liability and the Share of the Fiduciary Proportionate Proportionate of the Net State's Proportionate Net Pension Net Position Share Share (Amount) Pension Share of the Net Liability as a as a Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its Percentage Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total June 30 December 31 Liability Liability (a) City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Pension Liability 2015 2015 0.2263% 11,728,040$ -$ 11,728,040$ 13,317,871$ 88.1%78.2% 2016 2016 0.2258%18,333,840 239,395 18,573,235 14,027,206 132.4%68.9% 2017 2017 0.2269%14,485,146 182,131 14,667,277 14,714,583 99.7%75.9% 2018 2018 0.2307%12,798,290 419,668 13,217,958 15,513,575 85.2%79.5% 2019 2019 0.2358%13,036,854 405,149 13,442,003 16,684,548 80.6%80.2% 2020 2020 0.2373%14,227,219 438,865 14,666,084 16,929,758 86.6%79.1% 2021 2021 0.2397%10,236,264 312,569 10,548,833 17,305,663 61.0%87.0% 2022 2022 0.2387%18,905,119 554,246 19,459,365 17,852,413 109.0%76.7% 2023 2023 0.2449%13,694,534 377,584 14,072,118 19,401,899 72.5%83.1% 2024 2024 0.2360%8,724,424 225,596 8,950,020 19,973,187 44.8%89.1% See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 105 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND Last Ten Years Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered Ending (a)Contribution (b) (a-b)(c)Payroll (b/c) December 31, 2015 1,026,806$ 1,026,806$ -$ 13,690,747$ 7.50% December 31, 2016 1,076,319 1,076,319 - 14,350,435 7.50% December 31, 2017 1,122,359 1,122,359 - 14,965,469 7.50% December 31, 2018 1,206,070 1,206,070 - 16,080,867 7.50% December 31, 2019 1,270,160 1,270,160 - 16,935,462 7.50% December 31, 2020 1,330,896 1,330,896 - 17,746,254 7.50% December 31, 2021 1,320,869 1,320,869 - 17,605,379 7.50% December 31, 2022 1,366,394 1,366,394 - 18,218,564 7.50% December 31, 2023 1,443,924 1,443,924 - 19,252,322 7.50% December 31, 2024 1,537,072 1,537,072 - 20,494,293 7.50% See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 106 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND Last Ten Years City's Proportionate State's Share of the City's Proportionate Net Pension Proportionate Plan City's City's Share (Amount) Liability and the Share of the Fiduciary Proportionate Proportionate of the Net State's Proportionate Net Pension Net Position Share Share (Amount) Pension Share of the Net Liability as a as a Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability Percentage of its Percentage Date Ending the Net Pension Pension Associated with Associated with Covered Covered of the Total June 30 December 31 Liability Liability (a) City (b)City (a+b)Payroll (c) Payroll ((a+b)/c) Pension Liability 2015 2015 0.7170%8,146,798$ -$ 8,146,798$ 6,568,763$ 124.0%86.6% 2016 2016 0.7090%28,453,404 - 28,453,404 6,826,711 416.8%63.9% 2017 2017 0.7010%9,464,334 - 9,464,334 7,214,850 131.2%85.4% 2018 2018 0.7220%7,695,776 - 7,695,776 7,675,241 100.3%88.8% 2019 2019 0.7803%8,307,082 - 8,307,082 8,227,972 101.0%89.3% 2020 2020 0.7570%9,978,070 235,086 10,213,156 8,551,806 119.4%87.2% 2021 2021 0.7605%5,870,254 263,913 6,134,167 8,990,234 68.2%93.7% 2022 2022 0.7696%33,489,952 1,463,172 34,953,124 9,345,528 374.0%70.5% 2023 2023 0.7788%13,448,864 541,749 13,990,613 10,229,973 136.8%86.5% 2024 2024 0.7879%10,365,684 395,136 10,760,820 10,910,365 98.6%90.2% See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 107 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND Last Ten Years Statutorily Contributions in Contribution Contributions as a Required Relation to the Deficiency Covered Percentage of Fiscal Year Contribution Statutorily Required (Excess) Payroll Covered Ending (a) Contribution (b) (a-b) (c) Payroll (b/c) December 31, 2015 1,087,225$ 1,087,225$ -$ 6,711,265$ 16.20% December 31, 2016 1,127,487 1,127,487 - 6,959,796 16.20% December 31, 2017 1,210,648 1,210,648 - 7,473,136 16.20% December 31, 2018 1,284,219 1,284,219 - 7,927,279 16.20% December 31, 2019 1,433,661 1,433,661 - 8,458,178 16.95% December 31, 2020 1,602,879 1,602,879 - 9,055,812 17.70% December 31, 2021 1,635,494 1,635,494 - 9,240,074 17.70% December 31, 2022 1,700,317 1,700,317 - 9,606,308 17.70% December 31, 2023 1,799,416 1,799,416 - 10,166,187 17.70% December 31, 2024 2,008,062 2,008,062 - 11,344,984 17.70% See accompanying notes to the required supplementary information. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 108 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2024 Note A LEGAL COMPLIANCE – BUDGETS The General Fund and Housing Rehabilitation budgets are legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level for the major funds. General Fund expenditures exceeded budget by $441,556. Note B PENSION INFORMATION PERA – General Employees Retirement Fund 2024 Changes Changes in Actuarial Assumptions: The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the most recent experience study (dated June 29, 2023): -Rates of merit and seniority were adjusted, resulting in slightly higher rates. -Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. -Minor increase in assumed withdrawals for males and females. -Lower rates of disability. -Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. -Minor changes to form of payment assumptions for male and female retirees. -Minor changes to assumptions made with respect to missing participant data. Changes in Plan Provisions: -The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 2023 Changes Changes in Actuarial Assumptions: -The investment return assumption and single discount rate were changed from 6.50% to 7.00%. Changes in Plan Provisions: -An additional one-time direct state aid contribution of $170.1 million was contributed to the Plan on October 1, 2023. -The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. -The benefit increase delay for early retirements on or after January 1, 2024, was eliminated. -A one-time, non-compounding benefit increase of 2.50% minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 Changes Changes in Actuarial Assumptions: -The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes Changes in Actuarial Assumptions: -The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. -The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 109 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2024 2020 Changes Changes in Actuarial Assumptions: -The price inflation assumption was decreased from 2.50% to 2.25%. -The payroll growth assumption was decreased from 3.25% to 3.00%. -Assumed salary increase rates were decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination and disability were also changed. -Base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments. -The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. -The spouse age difference was changed from two years older for females to one year older. -The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 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% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2017 to MP-2018 Changes in the Plan Provisions: -The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The State’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. 2018 Changes Changes in Actuarial Assumptions: -The mortality projection scale was changed from MP-2015 to MP-2017. -The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 Changes Changes in Actuarial Assumptions: -The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. -The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 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, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 110 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2024 PERA – Public Employees Police and Fire Fund 2024 Changes Changes in Plan Provisions: -The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & Fire Plan and the State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for one year. -The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 2023 Changes Changes in Actuarial Assumptions: -The investment return assumption was changed from 6.50% to 7.00%. -The single discount rate changed from 5.40% to 7.00%. Changes in Plan Provisions: -An additional one-time direct state aid contribution of $19.4 million was contributed to the Plan on October 1, 2023. -Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years, increasing incrementally to 100% after 10 years. -A one-time, non-compounding benefit increase of 3.00% will be payable in a lump sum for calendar year 2024 by March 31, 2024. -Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. -The total and permanent duty disability benefit was increased, effective July 1, 2023. 2022 Changes Changes in Actuarial Assumptions: -The single discount rate changed from 6.50% to 5.4%. -The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 Changes Changes in Actuarial Assumptions: -The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. -The inflation assumption was changed from 2.50% to 2.25%. -The payroll growth assumption was changed from 3.25% to 3.00%. -The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020. -Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, slightly more unreduced retirements and fewer assumed early retirements. -Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. -Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. -Assumed percent married for active female members was changed from 60% to 70%. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 111 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2024 2020 Changes Changes in Actuarial Assumptions: -The mortality projection scale was changed from MP-2018 to MP-2019. 2019 Changes Changes in Actuarial Assumptions: - The mortality projection scale was changed from MP-2017 to MP-2018. Changes in the 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. 2017 Changes Changes in Actuarial Assumptions: -The single discount rate was changed from 5.6% to 7.5%. -Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. -Assumed rates of retirement were changed, resulting in fewer retirements. -The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. -The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. -Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. -Assumed percentage of married female members was decreased from 65 percent to 60 percent. -Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. -The assumed percentage of female members electing Joint and Survivor annuities was increased. -The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. 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 assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 112 CITY OF ST. LOUIS PARK, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2024 Note C OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. There are no factors that affect trends in the amounts reported, such as changes in benefit terms or assumptions. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 113 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 114 COMBINING FUND STATEMENTS AND SCHEDULES Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 115 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 116 NONMAJOR GOVERNMENTAL FUNDS Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 117 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 118 NONMAJOR GOVERNMENTAL FUNDS NONMAJOR SPECIAL REVENUE FUNDS – the Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Cable Television Fund – used to account for revenues received from franchise fees and expenditures related to regulation of the privately owned cable television company. Community Development Fund – used to account for funds received under Title I of the Housing and Community Development Act of 1974. Special Service Districts Fund – used to account for the operations of Special Service Districts. Revenues are received from each district’s property owners and are used to provide additional services, primarily snow removal, within each District. Affordable Housing Trust Fund – used to account for the operations related to supporting and expanding efforts to maintain and support naturally occurring affordable housing and other housing opportunities. Climate Investment Fund – used to account for programs related to supporting climate change efforts. Opioid Settlement Fund – used to account for opioid settlement funds. NONMAJOR CAPITAL PROJECTS FUNDS – the Capital Projects Funds account for financial resources that are restricted, committed, or assigned to expenditures for capital outlays including the acquisition or construction of capital facilities and other capital assets. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 119 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING BALANCE SHEET Statement 16 NONMAJOR GOVERNMENTAL FUNDS December 31, 2024 Assets Cash and investments 2,281,596$ 17,577$ 388,294$ 7,203,752$ 482,708$ 184,259$ 10,558,186$ Accounts receivable 136,579 - 2,990 - - - 139,569 Taxes receivable - unremitted - - - 8,186 - - 8,186 Taxes receivable - delinquent - - - 12,942 - - 12,942 Prepaid expenses 1,568 - 64 - - - 1,632 Special assessments receivable - delinquent - - 1,747 - - - 1,747 Special assessments receivable - deferred - - 269,902 - - - 269,902 Interfund loan receivable - - - 1,800,000 - - 1,800,000 Loans receivable - current - - - 7,350 - - 7,350 Loans receivable - noncurrent - 519,945 - 3,148,738 - - 3,668,683 Total assets 2,419,743$ 537,522$ 662,997$ 12,180,968$ 482,708$ 184,259$ 16,468,197$ Liabilities Accounts payable 493$ -$ 24,186$ 324,600$ 27,429$ -$ 376,708$ Salaries payable 16,942 - - - - - 16,942 Due to other governments - - - 218,265 - - 218,265 Unearned revenue - - - - - 176,865 176,865 Total liabilities 17,435 - 24,186 542,865 27,429 176,865 788,780 Deferred inflows of resources Unavailable revenue - 75,292 270,998 12,942 - - 359,232 Fund balances Nonspendable 1,568 - 64 - - - 1,632 Restricted 16,251 462,230 - 11,625,161 - - 12,103,642 Committed 1,509,433 - - - 455,279 7,394 1,972,106 Assigned 875,056 - 367,749 - - - 1,242,805 Total fund balances 2,402,308 462,230 367,813 11,625,161 455,279 7,394 15,320,185 Total liabilities, deferred inflows of resources, and fund balances 2,419,743$ 537,522$ 662,997$ 12,180,968$ 482,708$ 184,259$ 16,468,197$ Special Revenue Funds Opioid SettlementCable Television Community Development Total Special Service Districts Affordable Housing Trust Climate Investment Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 120 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES,Statement 17 EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2024 Revenues Property taxes -$ -$ -$ 1,704,690$ -$ -$ 1,704,690$ Franchise taxes 574,122 - - - - - 574,122 Intergovernmental - - - 330,429 - - 330,429 Charges for services - - - 4,200 - - 4,200 Special assessments - - 266,223 - - - 266,223 Interest income (loss)98,874 51 13,493 296,365 25,568 4,035 438,386 Miscellaneous 813 - 1,993 17,217 - - 20,023 Total revenues 673,809 51 281,709 2,352,901 25,568 4,035 - 3,338,073 Expenditures Current Public information 525,564 - - - - - 525,564 Housing and rehabilitation - - - 899,510 - - 899,510 Social and economic development - - 201,628 - 217,570 - 419,198 Non-departmental internal charges 9,063 - - - - - 9,063 Capital outlay Public information 20,114 - - - - - 20,114 Total expenditures 554,741 - 201,628 899,510 217,570 - - 1,873,449 Revenues over (under) expenditures 119,068 51 80,081 1,453,391 (192,002) 4,035 - 1,464,624 Other financing sources (uses) Transfers in - - 28,700 2,212,131 - - 2,240,831 Transfers out - - - (718,564) - - (718,564) Total other financing sources (uses)- - 28,700 1,493,567 - - - 1,522,267 Net change in fund balances 119,068 51 108,781 2,946,958 (192,002) 4,035 - 2,986,891 Fund balances - January 1, as previously presented 2,283,240 462,179 259,032 8,678,203 647,281 3,359 10,781,729 23,115,023 Change within financial reporting entity (nonmajor to major fund)- - - - - - (10,781,729) (10,781,729) Fund balances - January 1, as adjusted 2,283,240 462,179 259,032 8,678,203 647,281 3,359 - 12,333,294 Fund balances - December 31 2,402,308$ 462,230$ 367,813$ 11,625,161$ 455,279$ 7,394$ -$ 15,320,185$ Special Revenue Funds Capital Projects FundsCable Television Community Development Special Service Districts Total Affordable Housing Trust Opioid SettlementClimate Investment Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 121 CITY OF ST. LOUIS PARK, MINNESOTA CABLE TELEVISION FUND Statement 18 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL For The Year Ended December 31, 20243 Actual Original Final Amounts Revenues Franchise taxes 698,600$ 698,600$ 574,122$ ($124,478) Interest income (loss)- - 98,874 98,874 Miscellaneous - - 813 813 Total revenues 698,600 698,600 673,809 (24,791) Expenditures Current Public information 449,253 449,253 525,564 76,311 Non-departmental internal charges - - 9,063 9,063 Capital outlay Public information 95,000 95,000 20,114 (74,886) Total expenditures 544,253 544,253 554,741 10,488 Net change in fund balances 154,347$ 154,347$ 119,068 (35,279)$ Fund balances - January 1 2,283,240 Fund balances - December 31 2,402,308$ 2024 Budgeted Amounts Variance with Final Budget Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 122 CITY OF ST. LOUIS PARK, MINNESOTA COMMUNITY DEVELOPMENT FUND Statement 19 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL For The Year Ended December 31, 20243 Actual Original Final Amounts Revenues Intergovernmental 165,000$ 165,000$ -$ (165,000)$ Interest income (loss)- - 51 51 Total revenues 165,000 165,000 51 (164,949) Expenditures Current Housing maintenance 165,000 165,000 - (165,000) Total expenditures 165,000 165,000 - (165,000) Net change in fund balances -$ -$ 51 51$ Fund balances - January 1 462,179 Fund balances - December 31 462,230$ 2024 Budgeted Amounts Variance with Final Budget Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 123 CITY OF ST. LOUIS PARK, MINNESOTA SPECIAL SERVICE DISTRICTS FUND Statement 20 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL For The Year Ended December 31, 20243 Actual Original Final Amounts Revenues Charges for services 31,415$ 31,415$ -$ (31,415)$ Special assessments 266,482 266,482 266,223 (259) Interest income (loss)- - 13,493 13,493 Miscellaneous 1,933 1,933 1,993 60 Total revenues 299,830 299,830 281,709 (18,121) Expenditures Current Social and economic development 305,977 305,977 201,628 (104,349) Total expenditures 305,977 305,977 201,628 (104,349) Revenues over (under) expenditures (6,147) (6,147) 80,081 86,228 Other financing sources (uses) Transfers in - - 28,700 28,700 Net change in fund balances (6,147)$ (6,147)$ 108,781 114,928$ Fund balances - January 1 259,032 Fund balances - December 31 367,813$ 2024 Budgeted Amounts Variance with Final Budget Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 124 CITY OF ST. LOUIS PARK, MINNESOTA AFFORDABLE HOUSING TRUST FUND Statement 21 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL For The Year Ended December 31, 20243 Actual Original Final Amounts Revenues Property taxes 1,744,133$ 1,744,133$ 1,704,690$ (39,443)$ Intergovernmental - - 330,429 330,429 Charges for services - - 4,200 4,200 Interest income (loss)15,000 15,000 296,365 281,365 Miscellaneous - - 17,217 17,217 Total revenues 1,759,133 1,759,133 2,352,901 593,768 Expenditures Current Housing and rehabilitation 1,650,000 1,650,000 899,510 (750,490) Total expenditures 1,650,000 1,650,000 899,510 (750,490) Revenues over (under) expenditures 109,133 109,133 1,453,391 1,344,258 Other financing sources (uses) Transfers in - - 2,212,131 2,212,131 Transfers out (718,564) (718,564) (718,564) - Total other financing sources (uses)(718,564) (718,564) 1,493,567 2,212,131 Net change in fund balances (609,431)$ (609,431)$ 2,946,958 3,556,389$ Fund balances - January 1 8,678,203 Fund balances - December 31 11,625,161$ 2024 Budgeted Amounts Variance with Final Budget Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 125 CITY OF ST. LOUIS PARK, MINNESOTA CLIMATE INVESTMENT FUND Statement 22 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL For The Year Ended December 31, 20243 Actual Original Final Amounts Revenues Interest income (loss)-$ -$ 25,568$ 25,568$ Total revenues - - 25,568 25,568 Expenditures Current Social and economic development 181,000 181,000 217,570 36,570 Total expenditures 181,000 181,000 217,570 36,570 Net change in fund balances (181,000)$ (181,000)$ (192,002) (11,002)$ Fund balances - January 1 647,281 Fund balances - December 31 455,279$ 2024 Budgeted Amounts Variance with Final Budget Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 126 CITY OF ST. LOUIS PARK, MINNESOTA DEVELOPMENT EDA FUND Statement 23 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL For The Year Ended December 31, 20243 Actual Original Final Amounts Revenues Property taxes 903,230$ 903,230$ 921,653$ 18,423$ Lodging tax 696,475 696,475 1,096,864 400,389 Intergovernmental - - 1,488,540 1,488,540 Charges for services 197,194 197,194 177,279 (19,915) Interest income (loss)150,000 150,000 490,233 340,233 Miscellaneous 45,000 45,000 69,053 24,053 Total revenues 1,991,899 1,991,899 4,243,622 2,251,723 Expenditures Current Social and economic development 1,959,285 1,959,285 3,120,834 1,161,549 Capital outlay Social and economic development 3,116,000 3,116,000 - (3,116,000) Total expenditures 5,075,285 5,075,285 3,120,834 (1,954,451) Revenues over (under) expenditures (3,083,386) (3,083,386) 1,122,788 4,206,174 Other financing sources (uses) Transfers in - - 68,654 68,654 Transfers out - - (35,647) (35,647) Proceeds from sale of capital assets 3,465,000 3,465,000 - (3,465,000) Total other financing sources (uses)3,465,000 3,465,000 33,007 (3,431,993) Net change in fund balances 381,614$ 381,614$ 1,155,795 774,181$ Fund balances - January 1 18,346,846 Fund balances - December 31 19,502,641$ 2024 Budgeted Amounts Variance with Final Budget Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 127 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 128 INTERNAL SERVICE FUNDS The City has five Internal Service Funds to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments on a cost reimbursement basis. The City’s internal service funds account for employee benefits including pensions and other postemployment benefits, insurance, and capital replacement. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 129 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF NET POSITION Statement 24 INTERNAL SERVICE FUNDS December 31, 2024 Employee Benefits Property Casualty Vehicles & Equipment Municipal Building and Infrastructure Technology Total Assets Current assets Cash and investments 100,000$ 1,363,908$ 500,000$ 1,563,288$ 1,144,168$ 4,671,364$ Due from other governments - - 15,082 303,751 - 318,833 Taxes receivable - unremitted 890 - - 4,355 5,340 10,585 Prepaid items 518,455 - - - 227,948 746,403 Total current assets 619,345 1,363,908 515,082 1,871,394 1,377,456 5,747,185 Noncurrent assets Capital assets Nondepreciable capital assets, at cost Land - - - - 818,094 818,094 Construction in progress - - 276,426 118,947 - 395,373 Total nondepreciable capital assets - - 276,426 118,947 818,094 1,213,467 Depreciable capital assets, at cost Building and structures - - - 9,481,724 38,598 9,520,322 Improvements other than buildings - - 49,248 3,104,566 323,087 3,476,901 Infrastructure - - - 622,563 691,238 1,313,801 Machinery, furniture and equipment - - 6,651,621 379,917 4,075,033 11,106,571 Fleet - - 11,521,299 - 914,193 12,435,492 Total depreciable capital assets, at cost - - 18,222,168 13,588,770 6,042,149 37,853,087 Less: accumulated depreciation - - (10,880,335) (4,592,761) (4,322,166) (19,795,262) Total depreciable capital assets, net of accumulated depreciation - - 7,341,833 8,996,009 1,719,983 18,057,825 Amortizable capital assets, at cost Subscription-based IT arrangements - - - - 258,303 258,303 Lease assets - machinery, furniture and equipment - - - - 1,356,187 1,356,187 Lease assets - fleet - - 148,797 - - 148,797 Total amortizable capital assets, at cost - - 148,797 - 1,614,490 1,763,287 Less: accumulated amortization - - (82,231) - (455,796) (538,027) Total amortizable capital assets, net of accumulated amortization - - 66,566 - 1,158,694 1,225,260 Total capital assets, net of accumulated depreciation and amortization - - 7,684,825 9,114,956 3,696,771 20,496,552 Total noncurrent assets - - 7,684,825 9,114,956 3,696,771 20,496,552 Total assets 619,345 1,363,908 8,199,907 10,986,350 5,074,227 26,243,737 Deferred outflows of resources Related to pensions 18,862,358 - - - - 18,862,358 Related to OPEB 1,786,171 - - - - 1,786,171 Total deferred outflows of resources 20,648,529 - - - - 20,648,529 Liabilities Current liabilities Accounts payable 45,959 15,727 54,970 81,793 65,602 264,051 Salaries payable - 1,761 - - - 1,761 Accrued flex spending 65,241 - - - - 65,241 Due to other governments 785 - - - 243,167 243,952 Accrued interest payable - - 168 - 21,767 21,935 Compensated absences payable - current 3,798,863 - - - - 3,798,863 Leases liability - current - - 30,819 - 259,510 290,329 Subscription-based IT arrangements liability - current - - - - 17,420 17,420 Other postemployment benefits payable - current 296,959 - - - - 296,959 Total current liabilities 4,207,807 17,488 85,957 81,793 607,466 5,000,511 Noncurrent liabilities Compensated absences payable 882,186 - - - - 882,186 Lease liability - - 39,454 - 825,635 865,089 Other postemployment benefits payable 5,815,841 - - - - 5,815,841 Net pension liability 19,090,108 - - - - 19,090,108 Total noncurrent liabilities 25,788,135 - 39,454 - 825,635 26,653,224 Total liabilities 29,995,942 17,488 125,411 81,793 1,433,101 31,653,735 Deferred inflows of resources Related to pensions 25,217,862 - - - - 25,217,862 Related to OPEB 969,971 - - - - 969,971 Total deferred inflows of resources 26,187,833 - - - - 26,187,833 Net position Net investment in capital assets - - 7,614,552 9,114,956 2,594,206 19,323,714 Unrestricted (34,915,901) 1,346,420 459,944 1,789,601 1,046,920 (30,273,016) Total net position (34,915,901)$ 1,346,420$ 8,074,496$ 10,904,557$ 3,641,126$ (10,949,302)$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 130 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES AND Statement 25 CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS For The Year Ended December 31, 2024 Employee Benefits Property Casualty Vehicles & Equipment Municipal Building and Infrastructure Technology Total Operating revenues Charges for services 3,545,134$ -$ 1,164,359$ -$ 156,396$ 4,865,889$ Other 217,657 149,984 69,711 7,373 29,134 473,859 Total operating revenues 3,762,791 149,984 1,234,070 7,373 185,530 5,339,748 Operating expenses Personal services 4,100,742 48,033 - - - 4,148,775 Supplies - - 61,278 78,465 175,419 315,162 Professional services 31,199 - 2,529 165,036 826,050 1,024,814 Insurance - 279,280 - - - 279,280 Repairs and maintenance - -- 21,185 2,736 23,921 Depreciation and amortization - - 1,335,099 437,808 697,639 2,470,546 Other 37,304 - 6,479 - 457,346 501,129 Total operating expenses 4,169,245 327,313 1,405,385 702,494 2,159,190 8,763,627 Operating income (loss)(406,454) (177,329) (171,315) (695,121) (1,973,660) (3,423,879) Nonoperating revenues (expenses) Interest income (loss)78,628 45,720 354 16,979 32,372 174,053 Property taxes 200,000 - - 978,288 1,199,505 2,377,793 Intergovernmental revenue 798,216 - 15,082 303,750 15,329 1,132,377 Gain on disposal of capital assets - - 270,524 - - 270,524 Interest expense - - (4,578) - (25,656) (30,234) Total nonoperating revenues (expenses)1,076,844 45,720 281,382 1,299,017 1,221,550 3,924,513 Income (loss) before transfers 670,390 (131,609) 110,067 603,896 (752,110) 500,634 Transfers in 365,531 - 616,536 850,000 701,347 2,533,414 Change in net position 1,035,921 (131,609) 726,603 1,453,896 (50,763) 3,034,048 Net position - January 1 (35,951,822) 1,478,029 7,347,893 9,450,661 3,691,889 (13,983,350) Net position - December 31 (34,915,901)$ 1,346,420$ 8,074,496$ 10,904,557$ 3,641,126$ (10,949,302)$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 131 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS Statement 26 INTERNAL SERVICE FUNDS Page 1 of 2 For The Year Ended December 31, 2024 Employee Benefits Property Casualty Vehicles & Equipment Municipal Building and Infrastructure Technology Total Cash flows from operating activities Receipts from interfund services provided 3,545,134$ -$ 1,164,359$ -$ 156,396$ 4,865,889$ Other operating cash receipts 259,366 149,984 123,641 7,373 33,123 573,487 Payments to suppliers (439,966) (159,842) (24,544) (186,711) (1,210,170) (2,021,233) Payments to employees (5,147,421) (46,272) - - - (5,193,693) Net cash flows provided (used) by operating activities (1,782,887) (56,130) 1,263,456 (179,338) (1,020,651) (1,775,550) Cash flows from noncapital financing activities Transfers in 365,531 - - - - 365,531 Property taxes 199,360 - - 973,933 1,196,909 2,370,202 Intergovernmental receipts 798,216 - 45,071 (1) 15,329 858,615 Net cash flows provided (used) by noncapital financing activities 1,363,107 - 45,071 973,932 1,212,238 3,594,348 Cash flows from capital and related financing activities Transfers in - - 616,536 850,000 701,347 2,167,883 Acquisition of capital assets - - (2,423,390) (607,045) (364,199) (3,394,634) Proceeds from sale of capital assets - - 270,526 - - 270,526 Principal paid Leases - - (29,409) - (276,713) (306,122) Subscription-based IT arrangements - - - - (118,698) (118,698) Interest paid Leases - - (4,410) - (3,468) (7,878) Subscription-based IT arrangements - - - - (3,128) (3,128) Net cash flows provided (used) by capital and related financing activities - - (1,570,147) 242,955 (64,859) (1,392,051) Cash flows from investing activities Investment income 78,628 45,720 354 16,979 32,372 174,053 Net increase in cash and cash equivalents (341,152) (10,410) (261,266) 1,054,528 159,100 600,800 Cash and cash equivalents - January 1 441,152 1,374,318 761,266 508,760 985,068 4,070,564 Cash and cash equivalents - December 31 100,000$ 1,363,908$ 500,000$ 1,563,288$ 1,144,168$ 4,671,364$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 132 CITY OF ST. LOUIS PARK, MINNESOTA COMBINING STATEMENT OF CASH FLOWS Statement 26 INTERNAL SERVICE FUNDS Page 2 of 2 For The Year Ended December 31, 2024 Employee Benefits Property Casualty Vehicles & Equipment Municipal Building and Infrastructure Technology Total Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss)(406,454)$ (177,329)$ (171,315)$ (695,121)$ (1,973,660)$ (3,423,879)$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation and amortization - - 1,335,099 437,808 697,639 2,470,546 (Increase) decrease in assets/deferred outflows Accounts receivable 41,709 - 53,930 - 3,989 99,628 Prepaid items (290,450) 103,711 - - 4,612 (182,127) Deferred outflows of resources 5,274,449 - - - - 5,274,449 Increase (decrease) in liabilities/deferred inflows Accounts payable (79,264) 15,727 45,742 77,975 42,643 102,823 Accrued salaries payable - 1,761 - - - 1,761 Accrued flex spending 39,820 - - - - 39,820 Due to other governments (1,749) - - - 204,126 202,377 Compensated absences payable 267,937 - - - - 267,937 Other postemployment benefits 418,141 - - - - 418,141 Net pension liability (8,053,290) - - - - (8,053,290) Deferred inflows of resources 1,006,264 - - - - 1,006,264 Net cash provided (used) by operating activities (1,782,887)$ (56,130)$ 1,263,456$ (179,338)$ (1,020,651)$ (1,775,550)$ Noncash capital and related financing activities Capital assets acquired via lease -$ -$ -$ -$ 1,356,188$ 1,356,188$ Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 133 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 134 III. STATISTICAL SECTION (UNAUDITED) Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 135 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 136 Statistical Section (Unaudited) This statistical part of the City of St. Louis Park's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Table Financial Trends 1 - 5 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 6 - 9 These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property tax. Debt Capacity 10 - 14 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 15 - 16 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. Operating Information 17 - 19 These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 137 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2015 2016 2017 2018 Governmental activities Net investment in capital assets 96,286,131$ 96,458,787$ 103,279,857$ 107,090,668$ Restricted 10,608,709 10,658,889 11,439,977 13,200,855 Unrestricted 31,667,135 31,751,796 26,888,688 23,914,099 Total governmental activities net position 138,561,975$ 138,869,472$ 141,608,522$ 144,205,622$ Business-type activities Net investment in capital assets 22,753,326$ 23,030,284$ 25,716,982$ 25,992,377$ Unrestricted 4,620,302 5,849,650 4,979,057 6,163,907 Total business-type activities net position 27,373,628$ 28,879,934$ 30,696,039$ 32,156,284$ Total primary government Net investment in capital assets 119,039,457$ 119,489,071$ 128,996,839$ 133,083,045$ Restricted 10,608,709 10,658,889 11,439,977 13,200,855 Unrestricted 36,287,437 37,601,446 31,867,745 30,078,006 Total primary government 165,935,603$ 167,749,406$ 172,304,561$ 176,361,906$ Source(s): Source 1: Data was provided by the annual comprehensive financial report (ACFR) Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 138 Table 1 2019 2020 2021 2022 2023 2024 102,644,391$ 103,325,878$ 86,983,523$ 81,133,330$ 76,348,500$ 88,402,821$ 22,391,884 15,556,085 24,710,300 27,223,707 33,471,783 36,962,412 11,937,764 24,180,714 35,856,005 40,861,576 39,871,997 52,188,562 136,974,039$ 143,062,677$ 147,549,828$ 149,218,613$ 149,692,280$ 177,553,795$ 27,805,955$ 30,198,068$ 30,830,919$ 32,352,244$ 38,639,429$ 42,481,743$ 6,426,698 8,071,994 12,031,336 17,010,155 16,365,396 16,419,147 34,232,653$ 38,270,062$ 42,862,255$ 49,362,399$ 55,004,825$ 58,900,890$ 130,450,346$ 133,523,946$ 117,814,442$ 113,485,574$ 114,987,929$ 130,884,564$ 22,391,884 15,556,085 24,710,300 27,223,707 33,471,783 36,962,412 18,364,462 32,252,708 47,887,341 57,871,731 56,237,393 68,607,709 171,206,692$ 181,332,739$ 190,412,083$ 198,581,012$ 204,697,105$ 236,454,685$ Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 139 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2015 2016 2017 2018 Expenses Governmental activities General government 10,712,749$ 11,182,348$ 10,648,181$ 11,051,775$ Public safety 15,336,854 20,091,787 17,870,131 17,621,109 Public information 3,057,509 549,940 647,316 642,350 Operations - - - - Parks and recreation - - - - Operations and recreation 9,996,885 13,352,637 13,448,470 15,146,290 Engineering 10,185,956 5,091,818 7,859,907 7,491,753 Housing and rehabilitation 707,661 528,467 480,911 530,192 Housing maintenance 84,505 144,204 72,244 19,768 Social and economic development 8,872,479 8,826,281 10,987,654 12,549,378 Interest on long-term debt 1,233,107 1,620,489 1,511,329 1,456,241 Total governmental activities expenses 60,187,705 61,387,971 63,526,143 66,508,856 Business-type activities Water 4,684,190 4,773,624 4,786,816 5,445,760 Sewer 5,333,887 6,002,088 6,227,919 6,083,196 Solid waste 2,917,214 3,256,804 3,390,874 3,463,412 Storm water 1,400,975 1,514,761 1,611,785 2,372,829 Total business-type activities expenses 14,336,266 15,547,277 16,017,394 17,365,197 Total expenses 74,523,971$ 76,935,248$ 79,543,537$ 83,874,053$ Program revenues Governmental activities Charges for services General government 1,185,881$ 1,184,122$ 1,143,220$ 1,214,710$ Public safety 4,237,819 4,354,793 3,962,306 4,049,914 Public information 10,000 - - - Operations - - - - Parks and recreation - - - 576 Operations and recreation 2,344,863 2,122,730 2,308,221 2,516,191 Engineering 144,151 97,688 134,508 136,648 Housing and rehabilitation 6,315 7,607 4,514 633,932 Social and economic development 256,557 259,910 255,109 213,944 Operating grants and contributions 3,586,440 2,512,011 3,670,054 2,666,090 Capital grants and contributions 3,178,294 3,960,739 5,205,879 3,526,377 Total governmental activities program revenue 14,950,320 14,499,600 16,683,811 14,958,382 Business-type activities Charges for services Water 5,766,601 5,674,239 6,089,295 6,469,268 Sewer 6,112,024 6,663,731 7,261,014 7,360,679 Solid waste 3,189,566 2,905,899 3,237,506 3,348,948 Storm water 2,472,134 2,642,860 2,816,349 2,887,425 Operating grants and contributions 128,610 181,525 159,376 174,250 Capital grants and contributions - 799,894 279,801 429,928 Total business-type activities program revenue 17,668,935 18,868,148 19,843,341 20,670,498 Total program revenues 32,619,255$ 33,367,748$ 36,527,152$ 35,628,880$ Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 140 Table 2 Page 1 of 2 2019 2020 2021 2022 2023 2024 12,022,082$ 12,065,668$ 11,981,562$ 14,543,794$ 14,731,230$ 14,808,262$ 18,868,900 18,283,411 18,168,010 23,014,115 25,488,917 24,630,534 594,521 924,428 496,229 1,832,219 1,885,527 2,410,905 20,692,741 18,700,327 21,980,357 19,750,249 23,418,451 10,928,402 7,463,862 6,454,814 6,782,740 8,419,354 9,889,201 9,717,552 - - - - - - - - - - - - 1,001,834 1,085,356 780,257 5,473,490 1,897,395 1,396,062 89,828 709,009 - - - - 16,536,420 11,642,624 11,246,159 14,493,892 11,924,027 12,702,937 2,139,962 1,818,341 1,991,765 2,103,528 1,721,000 1,864,221 79,410,150 71,683,978 73,427,079 89,630,641 90,955,748 78,458,875 5,922,733 5,539,880 5,743,764 6,261,586 6,874,231 6,551,873 6,387,860 6,434,245 6,828,464 6,176,756 6,331,986 8,104,364 3,527,810 3,666,565 3,681,072 3,788,443 4,484,177 7,017,489 2,179,955 2,206,992 2,331,779 2,190,790 2,061,980 2,778,018 18,018,358 17,847,682 18,585,079 18,417,575 19,752,374 24,451,744 97,428,508$ 89,531,660$ 92,012,158$ 108,048,216$ 110,708,122$ 102,910,619$ 1,231,454$ -$ 1,266,925$ 1,323,472$ 1,275,983$ 547,692$ 5,212,202 6,353,145 4,719,500 6,756,712 4,605,015 4,001,428 - - - - - - 2,566,014 1,703,896 2,939,026 654,428 746,010 453,951 156,330 89,008 43,602 3,347,770 3,078,421 3,094,847 - - - - - - - - - - - - 3,467 - 750 2,676 4,982 4,904 216,989 330,072 213,828 239,886 217,058 177,279 3,360,346 6,426,976 2,886,299 3,247,517 4,876,812 7,665,211 2,693,816 3,646,262 3,996,798 8,958,110 3,010,970 10,930,059 15,440,618 18,549,359 16,066,728 24,530,571 17,815,251 26,875,371 6,908,538 7,989,679 8,535,668 9,156,315 9,045,322 8,709,379 7,634,597 8,059,428 8,528,207 8,971,596 8,957,027 9,308,774 3,538,931 3,782,579 4,267,345 4,540,176 4,420,169 6,205,281 3,059,282 3,158,072 3,322,640 3,541,917 3,710,665 3,817,281 196,100 196,223 212,446 206,308 288,228 1,690,778 556,508 629,172 430,010 829,382 251,800 224,578 21,893,956 23,815,153 25,296,316 27,245,694 26,673,211 29,956,071 37,334,574$ 42,364,512$ 41,363,044$ 51,776,265$ 44,488,462$ 56,831,442$ Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 141 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN NET POSITION LAST TEN FISCAL YEARS (accrual basis of accounting) 2015 2016 2017 2018 Net (expenses) revenues Governmental activities (45,237,385)$ (46,888,371)$ (46,842,332)$ (51,550,474)$ Business-type activities 3,332,669 3,320,871 3,825,947 3,305,301 Total primary government (41,904,716)$ (43,567,500)$ (43,016,385)$ (48,245,173)$ General Revenues and Other Changes in Net Position Governmental activities Taxes Property taxes 28,209,567$ 30,185,703$ 31,582,993$ 33,449,668$ Tax increment 6,763,951 7,733,689 8,961,792 10,266,075 Franchise taxes 2,915,732 3,079,399 3,763,394 3,804,678 Lodging taxes - - - 1,021,855 Grants and contributions not restricted to specific programs 557,671 584,639 590,978 618,645 Unrestricted investment earnings (loss)221,408 388,647 408,945 739,130 Gain on sale of capital assets 577,248 142,713 106,204 1,751,339 Miscellaneous 2,985,997 3,201,122 2,091,334 491,591 Transfers 3,620,449 1,879,956 2,075,742 2,004,593 Total governmental activities general revenues 45,852,023 47,195,868 49,581,382 54,147,574 Business-type activities Unrestricted investment earnings 59,330 65,391 65,900 159,537 Gain on sale of capital assets - - - - Transfers (3,620,449) (1,879,956) (2,075,742) (2,004,593) Total business-type activities general revenues (3,561,119) (1,814,565) (2,009,842) (1,845,056) Total primary government 42,290,904$ 45,381,303$ 47,571,540$ 52,302,518$ Change in net position Governmental activities 614,638$ 307,497$ 2,739,050$ 2,597,100$ Business-type activities (228,450) 1,506,306 1,816,105 1,460,245 Total primary government 386,188$ 1,813,803$ 4,555,155$ 4,057,345$ Source(s): Source 1: Data was provided by the annual comprehensive financial report (ACFR Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 142 Table 2 Page 2 of 2 2019 2020 2021 2022 2023 2024 (63,969,532)$ (53,134,619)$ (57,360,351)$ (65,100,070)$ (73,140,497)$ (51,583,504)$ 3,875,598 5,967,471 6,711,237 8,828,119 6,920,837 5,504,327 (60,093,934)$ (47,167,148)$ (50,649,114)$ (56,271,951)$ (66,219,660)$ (46,079,177)$ 34,566,143$ 36,651,274$ 37,841,783$ 41,059,104$ 43,092,885$ 46,118,820$ 11,027,616 12,081,105 12,875,438 14,185,011 14,262,120 15,666,627 4,212,728 4,569,901 5,122,147 5,469,040 5,442,999 5,502,940 1,074,002 339,055 543,133 905,461 959,428 1,096,864 319,322 331,454 587,658 816,658 760,407 3,748,369 1,669,916 1,232,923 (215,865) (888,151) 3,350,315 3,706,433 178,509 56,625 149,946 164,728 329,110 270,524 1,619,458 1,858,081 2,289,514 2,826,100 3,119,068 899,016 2,070,255 2,102,839 2,196,105 2,230,904 2,297,832 2,435,426 56,737,949 59,223,257 61,389,859 66,768,855 73,614,164 79,445,019 271,026 172,777 (45,939) (97,071) 1,019,421 825,709 - - - - - 1,455 (2,070,255) (2,102,839) (2,196,105) (2,230,904) (2,297,832) (2,435,426) (1,799,229) (1,930,062) (2,242,044) (2,327,975) (1,278,411) (1,608,262) 54,938,720$ 57,293,195$ 59,147,815$ 64,440,880$ 72,335,753$ 77,836,757$ (7,231,583)$ 6,088,638$ 4,029,508$ 1,668,785$ 473,667$ 27,861,515$ 2,076,369 4,037,409 4,469,193 6,500,144 5,642,426 3,896,065 (5,155,214)$ 10,126,047$ 8,498,701$ 8,168,929$ 6,116,093$ 31,757,580$ Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 143 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 144 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 3 GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS Fiscal Property Franchise Lodging Year Taxes Taxes Taxes Total 2015 34,973,518$ 2,915,732$ -$ 37,889,250$ 2016 37,919,392 3,079,399 - 40,998,791 2017 40,544,785 3,763,394 - 44,308,179 2018 43,715,743 3,804,678 1,021,855 48,542,276 2019 45,593,759 4,212,728 1,074,002 50,880,489 2020 48,732,379 4,569,901 339,055 53,641,335 2021 50,717,221 5,122,147 543,133 56,382,501 2022 55,244,115 5,469,040 905,461 61,618,616 2023 57,355,005 5,442,999 959,428 6,402,427 2024 61,785,447 5,502,940 1,096,864 68,385,251 Source(s): Source 1: Hennepin County tax settlement data Source 2: Financial data provided by the City's Finance division related to franchise and lodging taxes Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 145 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2015 2016 2017 2018 General fund Nonspendable 566,574$ 330,483$ 292,821$ 258,932$ Restricted 464,469 413,787 392,004 272,840 Assigned 758,084 936,663 1,050,569 1,025,207 Unassigned 15,242,009 16,193,763 17,054,520 17,697,405 Total General fund 17,031,136$ 17,874,696$ 18,789,914$ 19,254,384$ All other governmental funds Nonspendable -$ 23,563$ 6,500$ 19,700$ Restricted 12,457,701 10,057,843 11,725,590 12,196,553 Committed 481,009 466,287 696,235 1,064,284 Assigned 39,567,878 41,068,221 33,609,392 33,843,896 Unassigned (6,551,326) (5,187,339) (3,628,247) (7,382,436) Total all other governmental funds 45,955,262$ 46,428,575$ 42,409,470$ 39,741,997$ Source(s): Source 1: Data provided by the annual comprehensive financial report (ACFR) Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 146 Table 4 2019 2020 2021 2022 2023 2024 340,247$ 362,022$ 517,589$ 324,139$ 445,964$ 650,292$ 126,683 82,986 94,311 87,357 2,409,288 1,525,482 1,602,523 992,938 1,275,140 1,304,322 700,000 1,714,823 18,762,374 25,386,153 21,928,316 23,945,846 24,443,962 24,737,085 20,831,827$ 26,824,099$ 23,815,356$ 25,661,664$ 27,999,214$ 28,627,682$ 6,799$ -$ 9,500$ 3,100$ 11,929$ 14,657$ 28,145,222 18,877,118 23,013,971 25,561,608 27,755,191 33,000,355 913,497 812,078 1,535,938 2,118,897 2,068,003 1,972,106 31,598,020 30,398,365 33,433,213 35,172,356 35,640,204 37,395,065 (7,310,832) (5,887,231) (4,954,407) (10,883,317) (6,082,211) (2,093,353) 53,352,706$ 44,200,330$ 53,038,215$ 51,972,644$ 59,393,116$ 70,288,830$ Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 147 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2015 2016 2017 2018 Revenues Taxes 26,598,373$ 27,734,546$ 28,941,646$ 31,853,551$ Tax increments 6,763,951 7,733,689 8,961,792 10,266,075 Abatement of property taxes - - - - Lodging tax - - - 1,021,855 Franchise taxes 2,915,732 3,079,399 3,763,394 3,804,678 Licenses and permits 4,312,702 4,320,078 3,985,517 4,001,645 Intergovernmental 6,017,025 4,345,482 8,228,158 5,240,175 Charges for services 3,608,933 3,406,964 3,529,125 3,708,327 Fines and forfeits 263,951 299,808 293,236 282,146 Special assessments 1,238,873 1,192,628 1,169,859 1,150,577 Interest income (loss)199,747 362,196 369,203 677,131 Miscellaneous 3,051,946 3,230,390 2,218,712 1,529,337 Total revenues 54,971,233 55,705,180 61,460,642 63,535,497 Expenditures General government 7,813,046 8,188,193 8,142,675 9,075,636 Public safety 14,025,463 14,669,251 15,824,577 17,050,302 Public information 561,252 477,721 495,256 567,653 Operations - - - - Parks and recreation - - - - Operations and recreation 9,710,604 9,688,872 10,665,329 11,031,544 Engineering 10,068,447 480,162 7,754,421 4,449,897 Housing and rehabilitation 538,411 482,313 453,940 512,029 Housing maintenance 84,505 144,204 57,370 12,040 Social and economic development 8,872,479 8,673,638 10,857,645 10,479,359 Miscellaneous - - - - Internal charges - - - - Debt service Principal 1,612,827 1,681,876 3,650,297 2,055,000 Interest and other 1,210,971 1,446,371 1,493,780 1,462,325 Other charges 2,640 2,717 - - Bond issuance costs - 111,922 40,419 33,060 Capital outlay 3,486,864 19,894,828 10,159,659 14,388,878 Total expenditures 57,987,509 65,942,068 69,595,368 71,117,723 Revenues over (under) expenditures (3,016,276)(10,236,888)(8,134,726)(7,582,226) Other financing sources (uses) Transfers in 13,296,241 8,148,651 5,586,488 7,282,081 Transfers out (9,462,850) (6,994,545) (4,182,613) (5,608,462) Refunding bonds issued - - - - Bonds issued - 10,000,000 3,430,000 2,020,000 Proceeds from long term debt 2,200,000 - - - Premium on bonds issued - 396,655 196,964 5,659 Payments to refunded bond escrow agent - -- - Proceeds from sale of capital assets 777,248 3,000 - 1,679,945 Total other financing sources (uses)6,810,639 11,553,761 5,030,839 5,379,223 Net change in fund balances 3,794,363$ 1,316,873$ (3,103,887)$ (2,203,003)$ Debt service as a percentage of noncapital expenditures 5.18%6.02%8.61%5.60% Source(s): Source 1: Data provided by the annual comprehensive financial report (ACFR) Fical Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 148 Table 5 2019 2020 2021 2022 2023 2024 32,598,016$ 34,531,332$ 36,198,206$ 39,294,300$ 41,356,429$ 43,757,582$ 11,368,332 12,081,105 12,875,438 14,185,011 14,262,120 15,666,627 (340,716) 112,630 (257,203) - - - 4,212,728 339,055 543,133 905,461 959,428 1,096,864 1,074,002 4,569,901 5,122,147 5,469,040 5,442,999 5,502,940 5,264,659 5,294,314 4,997,981 7,282,483 5,164,020 4,662,869 5,383,495 6,904,307 6,868,059 6,561,710 8,461,941 20,545,819 3,847,458 3,055,615 4,034,686 4,849,157 4,577,185 3,353,019 274,339 126,192 150,964 175,090 179,508 14,261 1,183,508 1,127,497 1,322,729 1,316,841 1,566,668 1,686,870 1,616,635 1,176,200 (238,771) (849,382) 3,113,385 3,532,380 1,701,458 1,901,751 2,348,898 3,052,915 1,542,728 1,045,067 68,183,914 71,219,899 73,966,267 82,242,626 86,626,411 100,864,298 9,372,448 9,490,394 9,458,536 9,365,669 10,427,128 11,230,640 17,651,051 17,806,753 19,290,081 20,750,758 21,647,295 23,352,784 477,150 875,890 452,420 388,391 387,851 525,564 14,448,732 17,097,698 21,366,729 16,876,505 6,400,754 5,595,095 6,571,735 6,454,814 6,813,935 8,079,262 9,167,718 9,708,495 - - - - - - - - - - - - 796,010 1,060,588 776,654 5,424,459 1,852,640 1,419,612 60,315 709,009 - 30,000 30,000 - 15,396,270 11,513,051 11,110,229 14,307,230 11,415,678 13,806,076 26,282 517,651 482,494 585,774 831,287 618,487 - - - - - 1,030,400 2,990,000 11,915,000 3,495,000 4,195,000 4,985,000 5,990,000 1,468,620 2,138,151 1,907,737 2,153,150 2,134,560 2,134,508 - - - - - - 309,945 124,200 157,707 195,260 - - 16,857,464 8,140,774 6,339,203 3,502,579 8,934,470 17,069,393 86,426,022 87,843,973 81,650,725 85,854,037 78,214,381 92,481,054 (18,242,108)(16,624,074)(7,684,458)(3,611,411)8,412,030 8,383,244 3,919,120 7,537,016 10,843,129 5,443,812 12,514,209 12,417,597 (2,299,247) (5,573,129) (10,260,254) (6,097,836) (11,168,217) (12,515,585) - - - 1,345,000 - - 32,005,001 10,505,000 12,385,000 4,900,000 - 3,050,000 - - - - - - 1,965,386 938,458 529,431 36,282 - 188,926 (2,160,000) - - (1,345,000) - - - 56,625 16,294 109,890 - - 33,430,260 13,463,970 13,513,600 4,392,148 1,345,992 3,140,938 15,188,152$ (3,160,104)$ 5,829,142$ 780,737$ 9,758,022$ 11,524,182$ 6.0%17.6%7.4%7.7%10.2%8.8% Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 149 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) ASSESSED VALUE/TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF ALL TAXABLE PROPERTY LAST TEN FISCAL YEARS 2015 2016 2017 2018 Population 47,502 48,354 48,747 49,039 Real Property Total assessed/tax capacity value 65,599,841$ 71,118,692$ 77,324,247$ 81,272,437$ Less tax increment districts -(5,894,025) (6,798,025) (8,211,886) (8,746,231) Area-wide allocation (net)(3,879,478) (3,168,815) (4,255,021) (4,787,086) Net assessed/tax capacity value 55,826,338$ 61,151,852$ 64,857,340$ 67,739,120$ Estimated market value 5,435,136,500$ 5,841,548,800$ 6,306,324,900$ 6,637,473,500$ Personal Property Assessed/tax capacity value 607,025$ 614,793$ 650,504$ 710,227$ Estimated market value 30,852,400$ 31,212,200$ 33,056,300$ 36,048,400$ Total Real and Personal Property Assessed/tax capacity value 56,433,363$ 61,766,645$ 65,507,844$ 68,469,347$ Estimated market value 5,465,988,900$ 5,872,761,000$ 6,339,381,200$ 6,673,521,900$ Tax Capacity Rate 47.8%46.2%46.2%46.4% Source(s): Source 1: Data was provided by Hennipen County, MN taxing district information Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 150 Table 6 2019 2020 2021 2022 2023 2024 48,677 49,834 50,010 48,827 49,786 49,321 88,023,090$ 95,317,915$ 101,379,851$ 105,817,137$ 116,291,091$ 120,551,050$ (10,129,650) (10,875,524) (11,817,305) (12,614,033) (13,838,198) (13,822,199) (4,741,344) (5,233,557) (5,628,072) (6,248,597) (6,106,046) (6,025,679) 73,152,096$ 79,208,834$ 83,934,474$ 86,954,507$ 96,346,847$ 100,703,172$ 7,205,288,500$ 7,731,035,100$ 8,164,996,400$ 8,539,554,600$ 9,410,555,500$ 9,730,434,300$ 747,358$ 739,713$ 777,794$ 302,259$ 335,559$ 361,440$ 37,926,900$ 37,525,400$ 39,320,700$ 15,556,200$ 17,187,900$ 18,445,400$ 73,899,454$ 79,948,547$ 84,712,268$ 87,256,766$ 96,682,406$ 101,064,612$ 7,243,215,400$ 7,768,560,500$ 8,204,317,100$ 8,555,110,800$ 9,427,743,400$ 9,748,879,700$ 44.7%43.4%42.9%44.7%42.9%44.2% Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 151 STATISTICAL SECTION (UNAUDITED) 2015 2016 2017 2018 Operating Rate 45.234 43.744 42.933 41.759 Debt Service Rate 2.520 2.451 3.267 4.624 Total City Direct Rates 47.754 46.195 46.200 46.383 County Operating Rate 46.398 45.356 44.087 42.808 School District Operating Rate 15.642 14.887 12.364 14.506 Debt Service Rate 14.698 13.627 13.247 14.529 Other Taxing Districts St. Louis Park HRA Levy 1.679 1.634 1.661 1.718 Metro Mosquito Control 0.507 0.483 0.475 0.456 Metro Council 0.976 0.925 0.883 0.844 Metro Transit Debt 1.523 1.491 1.463 1.383 Hennepin County HRA 0.471 0.439 0.497 0.457 Hennepin Parks 3.789 3.601 3.365 3.161 Park Museum 0.702 0.712 0.711 0.710 HC Regional Railroad Authority 1.817 1.879 1.925 1.962 Referendum Market Value Based Rate - - - - Watershed 1.738 1.724 1.738 1.694 Total Overlapping Rates 89.940 86.758 82.416 84.228 Total Direct and Overlapping Rates 137.694 132.953 128.616 130.611 Source(s): Source 1: Hennipen County "Rate Cards" available on Hennipen County taxing district information City of St. Louis Park Overlapping Rates CITY OF ST. LOUIS PARK, MINNESOTA PROPERTY TAX RATES - DIRECT AND OVERLAPPING LAST TEN FISCAL YEARS Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 152 Table 7 2019 2020 2021 2022 2023 2024 40.090 38.656 37.652 38.647 36.299 37.941 4.616 4.742 5.203 6.034 6.562 6.240 44.706 43.398 42.855 44.681 42.861 44.181 41.861 41.084 38.210 38.535 34.542 34.681 13.578 13.946 14.273 15.594 16.718 18.917 13.444 13.244 12.205 11.189 8.288 7.996 1.667 1.668 1.699 1.743 1.630 1.734 0.427 0.412 0.381 0.377 0.331 0.312 0.659 0.616 0.631 0.659 0.576 0.614 1.456 1.433 1.256 1.204 1.066 0.927 0.535 0.801 0.722 0.771 0.663 0.624 2.961 2.859 2.793 2.787 2.473 2.399 0.705 0.710 0.707 0.722 0.647 0.694 1.807 1.388 1.323 1.329 1.188 1.153 - - - - - - 1.569 1.493 1.422 1.368 1.220 1.135 80.669 79.654 75.622 76.278 69.342 71.186 125.375 123.052 118.477 120.959 112.203 115.367 Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 153 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 8 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value Bigos Management 145,146,500 1 1.49 BOF III MN 10 West End Office Park. LLC 115,296,000 2 1.18 Excelsior & Grand LLC 102,075,000 3 1.05 67,721,000 6 1.24 BOF III MN 10 West End LLC 93,012,000 4 0.95 BRI 1880 Towers at West LLC 84,777,000 5 0.87 Gateway Knollwood, LLC 73,554,000 6 0.75 76,557,000 5 1.40 PNMC Holdings 71,534,800 7 0.73 57,879,100 7 1.06 MSP West End LLC 70,216,300 8 0.72 Middleton Park Place Investors, LLC 54,456,600 9 0.56 41,502,000 8 0.76 Metropointe LLC 48,000,000 10 0.49 ARC WEMPSMN001, LLC 98,745,000 1 1.81 Interchange Investors 96,792,000 2 1.77 G & I VII 1600 & Moneygram LLC 90,702,700 3 1.66 West End Office MN, LLC 39,820,000 9 0.73 Camerata LLC 38,060,000 10 0.70 Total 858,068,200$ 8.79 % 607,778,800$ 11.13 Total taxable assessed value 9,748,879,700$ 5,465,988,900$ Source(s): Source 1: 2024 Data - Assessing Division (City of St. Louis Park, MN) Source 2: 2015 Data - 2015 Annual Comprehensive Financial Report Taxpayer 2024 2015 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 154 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 9 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Year Total Tax Ended Levy for Percentage Percentage December 31 Fiscal Year Amount of Levy Amount of Levy 2015 27,938,615$ 27,590,682$ 98.75 27,906,854$ 99.98 2016 29,615,682 29,462,804 99.48 29,591,629 99.92 2017 31,350,534 30,559,213 97.48 31,345,761 99.98 2018 32,921,154 32,737,859 99.44 32,891,773 99.91 2019 34,362,862 34,204,350 99.54 34,331,011 99.99 2020 36,103,499 35,746,281 99.01 36,065,909 99.89 2021 37,772,505 37,266,514 98.66 37,654,221 99.69 2022 39,023,549 37,124,572 95.13 38,936,946 99.77 2023 43,144,457 42,662,701 98.88 42,760,653 99.11 2024 46,299,083 45,372,194 98.00 45,372,194 98.00 Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of St. Louis Park. This schedule estimates the portion of the outstanding debt of those overlapping governments businesses that is borne by the residents and of the City of St. Louis Park. This process recognizes that, when considering the term debt, the City's ability to issue and repay long- entire burden borne by the residents and taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. Source(s): Source 1: Data provided related to the collection of taxes from Hennipen County, MN Source 2: Property tax levies are approved annually by the City of St. Louis Park, MN City Council Collected Within the Fiscal Year of the Levy Total Collections to Date Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 155 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 10 RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Special Net Unamortized Net Unamortized Total Percentage Fiscal Obligation Tax Increment Assessment Revenue Lease Subscription Notes Premiums/Revenue Premiums/Primary of Personal Per Year Bonds Bonds Bonds Bonds Liabilities (2)Liabilities (3)Payable (Discounts)Bonds (Discounts)Government Income (1)Capita (1) 2015 22,445,000$ 4,175,000$ -$ -$ 24,975$ -$ 2,122,173$ (28,920)$ 13,510,000$ 106,990$ 42,355,218$ 2.26 891.65 2016 31,230,000 3,805,000 - - 215,619 - 2,025,297 348,099 10,515,000 91,538 48,230,553 2.46 997.45 2017 28,375,000 3,410,000 3,495,000 1,560,000 165,931 - - 497,335 14,070,000 375,930 51,949,196 2.53 1,065.69 2018 28,975,000 2,995,000 3,315,000 1,520,000 180,382 - - 445,293 19,475,000 677,443 57,583,118 2.67 1,174.23 2019 56,450,000 2,560,000 3,170,000 1,480,000 121,005 - - 2,323,277 24,900,000 1,853,981 92,858,263 3.95 1,909.09 2020 55,790,000 2,100,000 2,925,000 1,435,000 81,699 - - 3,082,423 27,870,000 2,194,446 95,478,568 3.87 1,915.93 2021 65,525,000 1,615,000 2,610,000 1,390,000 103,026 - - 3,337,534 25,735,000 1,977,066 102,292,626 2.40 1,265.95 2022 62,205,000 1,105,000 7,190,000 1,345,000 140,862 - - 3,108,098 23,230,000 1,759,686 100,083,646 2.76 1,348.43 2023 58,160,000 570,000 6,870,000 1,260,000 105,354 136,118 - 2,820,721 20,600,000 1,542,977 92,065,170 2.48 1,233.08 2024 56,285,000 - 6,445,000 1,190,000 1,155,418 17,420 - 2,709,837 23,920,000 1,679,102 93,401,777 2.31 1,141.20 Note(s): Note 1: Details regarding the City's outstanding debt can be found in the notes in the annual comprehensive financial report. (1) Data was provided by the Federal Census Bureau. (2) The City implemented GASB 87 for the year ended December 31, 2022. Liabilities listed for earlier years are capital lease payables. (3) The City implemented GASB 96 for the year ended December 31, 2023. Liabilities listed for earlier years are not restated. Governmental Activities Business Type Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 156 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 11 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS Percentage of Less: Amounts Estimated General Special Net Unamortized Net Unamortized Restricted Actual Taxable Fiscal Obligation Tax Increment Assessment Revenue Premiums/Revenue Premiums/for Debt Value of Per Year Bonds Bonds Bonds Bonds (Discounts)Bonds (Discounts)Service Funds Total Property (1)Capita (2) 2015 22,445,000$ 4,175,000$ -$ -$ (28,920)$ 13,510,000$ 106,990$ (3,092,198)$ 37,115,872$ 0.35 406.97 2016 31,230,000 3,805,000 - - 348,099 10,515,000 91,538 (3,146,018) 42,843,619 0.48 588.14 2017 28,375,000 3,410,000 3,495,000 1,560,000 497,335 14,070,000 375,930 (3,325,205) 48,458,060 0.48 627.90 2018 28,975,000 2,995,000 3,315,000 1,520,000 445,293 19,475,000 677,443 (4,727,310) 52,675,426 0.44 602.23 2019 56,450,000 2,560,000 3,170,000 1,480,000 2,323,277 24,900,000 1,853,981 (13,942,465) 78,794,793 0.69 1,019.52 2020 55,790,000 2,100,000 2,925,000 1,435,000 3,082,423 27,870,000 2,194,446 (4,923,698) 90,473,171 0.75 1,170.06 2021 65,525,000 1,615,000 2,610,000 1,390,000 3,337,534 25,735,000 1,977,066 (5,296,548) 96,893,052 0.82 1,280.59 2022 62,205,000 1,105,000 7,190,000 1,345,000 3,108,098 23,230,000 1,759,686 (6,553,029) 93,389,755 0.81 1,305.71 2023 58,160,000 570,000 6,870,000 1,260,000 2,820,721 20,600,000 1,542,977 (7,810,235) 84,013,463 0.60 899.71 2024 56,285,000 -6,445,000 1,190,000 2,709,837 23,920,000 1,679,102 (8,250,783) 83,978,156 0.86 1,702.69 Note(s): Note 1: Details regarding the City's outstanding debt can be found in the notes in the annual comprehensive financial report. (1) Data was provided by Hennepin County, MN and the City's Assessing Division (2) Data was provided by the Federal Census Bureau Business Type ActivitiesGovernmental Activities Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 157 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 158 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 12 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2024 Share of Debt Percentage Overlapping Outstanding (1)Applicable (2)Debt Overlapping Debt Hennepin County 1,530,570,000$ 3.57 %42,573,588$ St. Louis Park Independent School District 240,940,000 99.38 %236,016,531 Hopkins Independent School District 133,460,000 2.57 %3,378,173 Edina Independent School District 268,115,000 0.06 %100,555 Hennepin County Suburban Park District 60,050,000 4.82 %2,357,753 Hennepin Regional RR Authority 76,945,000 3.57 %2,740,858 Metropolitan Council 1,558,153,207 1.62 %657,881 Subtotal of Overlapping Debt 3,868,233,207 287,825,339 Direct Debt City of St. Louis Park 92,228,939$ 100.00 %92,228,939$ Total of Direct and Overlapping Debt 3,960,462,146$ 380,054,278$ Note(s): Note 1: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of St. Louis Park. 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. Louis Park. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire 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. (1) Net debt which excludes revenue and special assessment bonds. (2) The percentage applicable to the City of St. Louis Park was determined by dividing the portion of tax capacity within the City by the total tax capacity of the of the taxing jurisdiction. Source(s): Source 1: Data provided by Hennepin County, Minnesota Governmental Unit Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 159 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS 2015 2016 2017 2018 Debt Limit 163,979,667$ 176,182,830$ 190,181,436$ 200,205,657$ Total Net Debt Applicable to Limit 17,063,045 23,934,703 28,375,000 28,975,000 Legal Debt Margin 146,916,622$ 152,248,127$ 161,806,436$ 171,230,657$ Total Net Debt Applicable to the Limit as a percentage of Debt Limit 10.41%13.59%14.92%14.47% Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value 5,465,988,900$ 5,872,761,000$ 6,339,381,200$ 6,673,521,900$ Debt Limit (3% of taxable market value)163,979,667$ 176,182,830$ 190,181,436$ 200,205,657$ Debt applicable to limit Total Bonded Debt 42,355,218$ 45,550,000$ 50,910,000$ 56,280,000$ Less: G.O. Revenue Bonds (13,510,000) (10,515,000) (15,630,000) (20,995,000) G.O. Improvement Bonds (5,485,000) (5,270,000) - - G.O. Special Assessment Bonds - - (3,495,000) (3,315,000) G.O. Tax Increment Bonds (4,175,000) (3,805,000) (3,410,000) (2,995,000) Notes payable (2,122,173) (2,025,297) - - Total Net Debt Applicable to Limit:17,063,045 23,934,703 28,375,000 28,975,000 Legal Debt Margin:146,916,622$ 152,248,127$ 161,806,436$ 171,230,657$ Source(s): Source 1: Estimated taxable market value was provided by City's Assessing Division and Hennepin County, MN taxing district information. Source 2: Data regarding bonded information was provided by City's Finance Division Note(s): Note 1: Under State of Minnesota law, the City of St. Louis Park's outstanding general obligation debt should not exceed 3 percent of the market value of the taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 160 Table 13 2019 2020 2021 2022 2023 2024 216,158,655$ 233,056,815$ 246,129,513$ 256,653,324$ 282,832,302$ 289,527,126$ 56,450,000 55,790,000 65,525,000 62,205,000 58,740,000 43,825,000 159,708,655$ 177,266,815$ 180,604,513$ 194,448,324$ 224,092,302$ 245,702,126$ 26.12%23.94%26.62%24.24%20.77%15.14% 7,205,288,500$ 7,768,560,500$ 8,204,317,100$ 8,555,110,800$ 9,427,743,400$ 9,650,904,194$ 216,158,655$ 233,056,815$ 246,129,513$ 256,653,324$ 282,832,302$ 289,527,126$ 88,560,000$ 90,120,000$ 96,875,000$ 95,075,000$ 87,460,000$ 87,840,000$ (26,380,000) (29,305,000) (27,125,000) (24,575,000) (21,860,000) (25,110,000) (12,460,000) (12,460,000) (12,460,000) (12,460,000) (12,460,000) (12,460,000) (3,170,000) (2,925,000) (2,610,000) (7,190,000) (6,870,000) (6,445,000) (2,560,000) (2,100,000) (1,615,000) (1,105,000) (570,000) - - - - - - - 43,990,000 43,330,000 53,065,000 49,745,000 45,700,000 43,825,000 159,708,655$ 177,266,815$ 180,604,513$ 194,448,324$ 224,092,302$ 245,702,126$ Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 161 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 14 PLEDGED REVENUE BOND COVERAGE LAST TEN FISCAL YEARS Less:Net Fiscal Gross Operating Revenue Year Revenue 2 Expenses 3 Available Principal Interest Coverage 2015 14,379,975$ (9,041,931)$ 5,338,044$ 1,045,000$ 4 381,359$ 3.74 2016 15,481,494 (10,328,560) 5,152,934 1,155,000 5 301,051 3.54 2017 16,495,157 (10,186,997) 6,308,160 1,360,000 6 197,658 4.05 2018 16,851,218 (11,354,272) 5,496,946 1,375,000 320,608 3.24 2019 17,827,318 (11,848,046) 5,979,272 2,095,000 543,388 2.27 2020 19,334,536 (11,095,215) 8,239,321 2,065,000 697,976 2.95 2021 20,311,000 (11,982,334) 8,328,666 2,135,000 858,728 2.78 2022 21,582,506 (11,883,813) 9,698,693 2,505,000 824,730 2.91 2023 22,665,949 (12,646,390) 9,319,345 2,630,000 736,665 2.77 2024 24,040,511 (13,276,567) 10,763,944 2,430,000 651,250 3.49 Note(s): Note 1: Details regarding the government's outstanding debt can be found in the notes to the annual comprehensive financial report. 1 Includes Water Utility, Sewer Utility and Storm Water Utility revenue bonds. 2 Gross revenue includes investment income and excludes intergovermental and miscellaneous revenues. 3 Expenses exclude depreciation, interest on bonds and miscellaneous expenses. 4 Excludes $2,145,000 refunded principal paid through cash with fiscal agent. 5 Excludes $1,840,000 refunded principal paid through cash with fiscal agent. 6 Excludes $1,555,000 refunded principal paid through issuance of 2017A bonds. Debt Service Revenue Bonds 1 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 162 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Personal Income (amounts expressed Per Capita Median School Unemployment Year Population (1)in thousands)Income (1)Age (1)Enrollment (2)Rate (3) 2015 47,502 1,876,424 39,502 35.5 4,590 2.3 2016 48,354 1,962,641 40,589 35.2 4,627 2.9 2017 48,747 2,053,370 42,123 35.7 4,571 2.1 2018 49,039 2,157,275 43,991 35.7 4,560 2.2 2019 48,677 2,286,261 46,968 35.6 4,692 2.5 2020 49,834 2,469,026 49,545 35.3 5,000 5.2 2021 50,010 2,639,628 52,782 36.1 4,523 3.0 2022 48,827 2,721,470 55,737 35.6 4,373 1.8 2023 49,786 3,119,392 62,656 36.0 4,476 2.1 2024 49,321 3,085,029 62,550 36.0 4,370 2.6 Source(s): (1) Data was provided by the Federal Census Bureau (2) School enrollment data was provided by the Minnesota Department of Education (MDE) (3) Data provided by the Metropolitan Council, MN Table 15 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 163 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 164 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 16 DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Employees Rank Employees Rank Park Nicollet Health Services and Methodist Hospita 4,650 1 12.0 % 5,763 1 21.1 % Wells Fargo Mortgage 1,100 2 2.8 1,450 2 5.3 St. Louis Park Public Schools (I.S.D. No. 283)1,000 3 2.6 702 3 2.6 Japs-Olson Company 600 4 1.6 614 5 2.2 RAYUS Radiology (formerly Center for Diagnostic Imaging)450 5 1.2 Sholom Home West 420 6 1.1 650 4 2.4 Target (formerly Super Target)405 7 1.0 420 6 1.5 MoneyGram International 400 8 1.0 409 7 1.5 Cub Foods 300 9 0.8 Lifetime Fitness 300 10 0.8 Health Partners 400 8 1.5 St. Louis Park, City of 269 9 1.0 Epicor Software Corporation 250 10 0.9 Total 9,625 24.90 % 10,927 40.00 % Total City employment 38,686 27,369 Source(s): Data Axle Reference SoluƟons, wriƩen and telephone survey,and the Minnesota Department of Employment and Economic Development. Percentage Percentage 2024 2015 Fiscal Year Fiscal Year Source 2: 2024 Data - Total City Employment: Met Council Community Profile website of Total City of Total City Employer Employment Employment Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 165 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED) FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 Function General government 89.4 91.6 97.9 91.8 Public safety Police Officers 55.0 55.0 57.0 57.0 Civilians 35.0 35.0 35.0 35.0 Fire Firefighters and officers 25.0 26.0 28.0 28.0 Operations and recreation and Engineering 35.0 35.0 28.1 35.0 Water 11.5 11.4 12.5 14.6 Sewer 6.0 6.0 6.4 5.1 Solid Waste 5.8 5.8 5.3 4.9 Storm Water 6.7 6.7 7.1 6.2 Total Employees 269.4 272.5 277.3 277.6 Source(s): Source 1: Data & records maintained in the Human Resources Division of the City of St. Louis Park, MN Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 166 Table 17 2019 2020 2021 2022 2023 2024 93.9 128.0 126.8 129.0 127.8 130.6 57.0 58.0 58.0 58.0 60.0 57.0 36.0 15.0 15.0 16.0 15.0 16.0 28.0 28.0 30.0 30.0 31.0 32.0 36.0 37.0 37.0 38.0 28.7 20.2 12.2 9.7 9.0 18.0 11.0 11.3 6.1 6.0 7.0 - 7.5 8.8 5.6 3.0 3.0 3.0 5.0 4.2 6.8 4.0 4.0 1.0 7.0 6.5 281.6 288.7 289.8 293.0 293.0 286.6 Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 167 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 18 OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police Medical calls 3,756 3,623 3,705 4,375 4,479 3,559 3,683 3,947 3,798 4,054 Traffic stops 6,692 6,939 7,401 6,267 3,956 3,352 3,429 2,700 5,229 5,210 Other 29,299 31,462 31,052 31,882 37,399 43,757 44,508 40,164 50,331 37,430 Fire Inspections/medical/all other calls 5,118 6,130 5,513 6,308 5,712 5,032 5,301 5,648 5,844 5,434 Fire calls - residential/structural 135 53 202 297 95 87 130 44 34 74 Fire calls - other 115 41 85 68 50 40 198 76 85 103 Cable TV Hours of new programming 400 400 368 362 377 249 377 382 425 382 Inspections Permits 9,684 10,099 11,246 10,106 10,619 11,215 12,180 11,305 11,208 12,296 Inspections 23,031 23,372 28,484 25,187 21,419 23,090 26,928 26,091 25,845 25,662 Culture and recreation Aquatic park attendance 68,355 72,439 65,665 71,977 65,000 26,762 39,963 28,649 65,102 43,661 Hours of ice time 4,626 4,125 6,000 6,400 6,900 4,460 5,718 6,650 6,550 6,708 Water Gallons of water production (billions)2.01 1.78 1.79 1.91 1.83 1.77 1.9 1.96 2.03 1.83 Average watermain breaks per year 41 20 11 38 33 33 29 28 11 16 Public Works Snowplowing hours 2,284 3,781 2,859 5,466 4,334 2,546 3,275 4,483 3,751 1,874 Source(s): Source 1: Data above is retained by departments and divisions of the City of St. Louis Park, MN Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 168 CITY OF ST. LOUIS PARK, MINNESOTA STATISTICAL SECTION (UNAUDITED)Table 19 CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Function Public safety Police Stations 1 1 1 1 1 1 1 1 1 1 Patrol units 28 28 29 29 29 29 29 35 35 36 Fire Stations 2 2 2 2 2 2 2 2 2 2 Vehicles 10 14 15 15 15 15 15 15 15 15 Fire hydrants 1,699 1,772 1,773 1,774 1,774 1,774 1,774 1,774 1,774 1,790 Culture and recreation Parks 52 53 53 53 53 53 53 53 53 53 Trails 10 22 22 22 22 22 22 22 22 22 Streets Lane miles of streets 311 311 311 311 311 311 311 417 417 321 Miles of streets 155 155 155 155 155 155 155 149 149 149 Water Wells 10 10 10 10 10 10 10 9 9 9 Water treatment plants 6 6 6 6 6 6 6 6 6 6 Miles of watermain 160 175 175 175 175 175 178 159 159 159 Sanitary Sewer Lift stations 23 23 23 23 23 23 23 23 23 23 Miles of sewermain 147 143 143 143 143 143 144 137 137 137 Storm Sewer Lift stations 10 10 11 11 11 11 11 12 12 11 Ponds and lakes 52 52 52 52 52 52 51 99 99 51 Catch basins 3,731 3,885 3,885 3,940 3,940 3,940 4,143 4,129 4,129 4,131 Source(s): Source 1: Data is retained by departments and divisions of the City of St. Louis Park, MN Fiscal Year Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 169 - This page intentionally left blank - Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 170 400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements, and have issued our report thereon dated June 25, 2025. In connection with our audit, nothing came to our attention that caused us to believe that City of St. Louis Park, Minnesota failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statute § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding City of St. Louis Park, Minnesota’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 25, 2025 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 171 400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City of St. Louis Park, Minnesota’s basic financial statements, and have issued our report thereon dated June 25, 2025. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of St. Louis Park, Minnesota’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of St. Louis Park, Minnesota’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be a material weakness and significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 172 prevented, or detected and corrected, on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2024-002 to be a material weakness. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and questioned costs as item 2024-001 to be a significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of St. Louis Park, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The City of St. Louis Park, Minnesota’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the City of St. Louis Park, Minnesota ’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City of St. Louis Park, Minnesota ’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 25, 2025 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 173 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended December 31, 2024 2024-001 Management Override of Internal Controls Criteria: City management at all levels should be familiar with and adhere to City policies and procedures. Condition: During the audit, instances were identified where members of City management at various levels did not follow the City’s policies and procedures. Examples are as follows: The City’s Financial Management Policy, Section Purchasing IX – Conflicts of Interest, and the City’s Personnel Manual, Section 16.1 – Conflicts of Interest, indicates that: “Minnesota State Statutes 471.87 and 471.88 prohibit the purchase of goods and services wherever a conflict of interest may exist. City of St. Louis Park Personnel Rules require employees to disclose to their immediate supervisor any personal financial interest in the selling or buying of goods or service for the City of St. Louis Park. No purchase orders, contracts or service agreements shall be given to an employee of the City or to a partnership or corporation of which an employee is a major stockholder or principal. … If any employee becomes involved in a possible conflict situation, the employee shall disclose the nature of the possible conflict to his or her supervisor and to the City Manager. The City Manager shall promptly notify the individual in writing of an approval or disapproval of the activity.” The City conducts business with a not-for-profit vendor for which a city employee has the authority to approve payment to that not-for-profit. This same city employee also serves on the board of that not-for-profit. During 2024, the City employee associated with the not-for-profit did not approve disbursements to the not-for profit, however, a disbursement occurred that was approved by others. This disbursement was then expensed to the expense budget for which this employee has oversight responsibility. We were unable to identify written approval or disapproval of the activity from the City Manager. The City’s Protective Footwear Policy indicates that: “Protective footwear must comply with any of the following consensus standards (only one is required and needs to be stated): OSHA Standards 1910.136(b)(1)(i), 1910.136(b)(1)(ii), or 1910.136(b)(1)(iii).” During 2024, a supervisor within the City approved a footwear purchase for an employee that was shipped directly to that employee’s personal home address. The footwear purchased did not adhere to or explicitly state any of the consensus standards as required by the City’s written protective footwear policy. Additionally, we were unable to identify any alternate authority or allowability for the purchase of personal footwear with City funds. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 174 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended December 31, 2024 Cause: Unknown. Effect: Noncompliance with the City's established policies and procedures by management may contribute to a weakened control environment and undermine the effectiveness of the organization’s "tone at the top." An insufficient tone at the top can create an environment where unethical behavior by employees is more likely to occur and go unaddressed. This in turn increases the risk that financial statement misstatements, whether due to fraud or error, may occur and not be detected or corrected in a timely manner. Recommendation: We recommend the City ensures that management and employees at all levels are familiar with and adhere to City policies and procedures. Views of Responsible Officials: The City agrees with the finding. Finance will ensure all future invoices to the not-for-profit identified are processed by a non-conflicted department and clarify policies and procedures for all staff around conflicts of interest. Finance will also ensure that all departments are aware of the footwear policy and adhere to it in the future. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 175 CITY OF ST. LOUIS PARK, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended December 31, 2024 2024-002 Audit Adjustments Criteria: Material audit adjustments are considered to be a deficiency in internal controls as defined by auditing standards. Condition: During the audit, the following audit adjustment was made as a result of audit procedures: Amounts due from other governments in the Capital Fund were decreased by $275,928 and amounts due from other governments in the Storm Water Fund were increased by the same amount. Cause: The City’s year-end closing processes did not identify the misallocation of amounts due from other governments prior to the audit. Effect: Inadequate controls over the financial closing process results in an increased risk that financial statement misstatements may occur and not be detected and corrected on a timely basis. Recommendation: We recommend the City continue efforts to ensure that all adjustments are identified during the year-end closing process. Views of Responsible Officials: The City agrees with the adjustment. We will evaluate the current processes and implement additional procedures to help minimize such misstatements in the future. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 176 400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE To the Honorable Mayor and Members of the City Council City of St. Louis Park, Minnesota We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of St. Louis Park, Minnesota for the year ended December 31, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated February 10, 2025. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City of St. Louis Park, Minnesota are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2024, except that the City of St. Louis Park, Minnesota implemented Governmental Accounting Standards Board Statement (GASBS) No. 101, Compensated Absences, and GASBS No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62. The implementation of GASBS No. 101 did not have a material effect on the financial statements. The implementation of GASBS No. 100 resulted in an updated presentation of changes in major funds, as shown on Statement 4. We noted no transactions entered into by the City of St. Louis Park, Minnesota during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 177 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 2 The most sensitive estimates affecting the financial statements are the: Estimated present value of the lease receivables, lease liabilities, and the subscription-based information technology arrangement (SBITA) liability Estimates used to calculate the net pension liability and OPEB liability, the pension and OPEB related deferred outflows and inflows of resources, and pension and OPEB expense Estimated value of land held for resale Estimated cost of construction projects undertaken in conjunction with the County Estimated cost of the environmental pollution remediation liability These estimates are based on the City of St. Louis Park, Minnesota’s estimated incremental borrowing rates, rates stated in applicable lease agreements, actuarial studies, and engineering estimates. We evaluated the key factors and assumptions used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosure most likely to be considered sensitive is Note 7 – Defined Benefit Pension. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. The following material misstatement detected as a result of audit procedures was corrected by management: A due from other governments receivable in the amount of $275,928 was recorded in an incorrect fund. The adjustment increased amounts due from other governments in the Storm Water Fund and decreased amounts due from other governments in the Capital Fund. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 178 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 3 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 25, 2025. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City of St. Louis Park, Minnesota’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City of St. Louis Park, Minnesota’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. During the course of our audit, the following matters came to our attention:  The City does not have a written policy or approval process regarding authorized users of charge accounts at local businesses. We recommend the City establish a written policy addressing the use of charge accounts. We recommend that the policy include the process for establishing a charge account, approval of the specific individuals allowed to use the charge account, and monitoring provisions to ensure that only authorized users are utilizing the City’s charge accounts.  There was a lease agreement between a city employee and the city, whereby the employee was leasing a 2-bedroom, 2-bathroom residential property. The terms of the agreement included landlord (city) paid utilities and monthly lease payments for 2024 of $1,250 per month. The terms of this agreement appear to be below market rate. It is our understanding that this lease agreement has since been terminated, however we recommend the City review any additional agreements with City employees to ensure that they are compliant with Minnesota State Statutes and market rates. Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 179 City of St. Louis Park, Minnesota Communication With Those Charged With Governance Page 4 The finance department does not currently have access to all applicable finance agreements, including but not limited to loan receivable agreements, grant agreements, and related documentation. This limitation increases the risk of incomplete or inaccurate financial reporting. We recommend the City establish regularly scheduled meetings and enhance communication between the finance department and other city departments. Additionally, we recommend providing the finance department with access to necessary records to ensure all relevant activity gets reflected in the City’s financial statements. Other Matters We applied certain limited procedures to the management’s discussion and analysis, budgetary comparison schedules, and schedules of OPEB and pension information, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the individual and combining nonmajor fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Such information has not been subjected to auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of the City of St. Louis Park, Minnesota’s City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 25, 2025 Study session meeting of July 14, 2025 (Item No. 1) Title: Review of 2024 Annual Comprehensive Financial Report Page 180 Meeting: Study session Meeting date: July 14, 2025 Written report: 2 Executive summary Title: 2025 Legislative Session wrap-up Recommended action: None. Policy consideration: None. This is an opportunity for the city council to hear from the city’s lobbying firm. Summary: At midnight of May 19, 2025, the regular legislative session officially adjourned. Since the state legislature had not passed all its constitutionally mandated budget for fiscal years 2026-2027, Governor Walz called a special session on June 9, 2025, to address the remaining budget bills. The House adjourned at 10:40 p.m. June 9, 2025 and the Senate adjourned at 1:54 a.m. on June 10, 2025. The overall budget for fiscal years 2026-2027 is set at around $66 billion, a decrease from the previous budget of $72 billion. The final bills, language and spreadsheets were negotiated by informal working groups from the end of regular session on May 19, 2025, through the weekend of June 8, 2025. The bonding bill did not include any local projects. During the 2025 session, the City of St. Louis Park worked with Momentum Advocacy to represent city interests at both state and federal levels. Members of Momentum Advocacy are here this evening to speak about the impacts on the city resulting from new legislation. Financial or budget considerations: Not applicable. Strategic priority consideration: The legislative positions directly align with all five of the strategic priorities by design. Supporting documents: 2025 legislative positions and priorities 2025 end of session summary Prepared by: Clancy Ferris, legislative & grants analyst Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager Study session meeting of July 14, 2025 (Item No. 2) Page 2 Title: 2025 Legislative Session wrap-up Discussion Background: State Legislative overview: The 2024 elections resulted in a tied Minnesota House (67-67) between the Minnesota Democratic-Farmer-Labor Party (DFL) and the Republican Party (GOP), as well as a one-seat DFL majority (34-33) in the Minnesota Senate. The first day of the Legislative session for the budget year was Jan. 14, 2025. Minnesota House of Representatives: •Dec. 20, 2024: A judge ruled that a Minnesota House Representative elected in district 40B did not meet residency requirements, leaving the house in a 67-66 GOP majority. Governor Walz called a special election on Dec. 27, 2024, for Jan. 28, 2025. •Jan. 14, 2025: A judge ruled that Representative Tabke had won his race. Despite this ruling, GOP members threatened not to seat Representative Tabke. •Jan. 17, 2024: The Minnesota Supreme Court ruled that Governor Walz called the special election for district 40B prematurely. •Jan. 24, 2025: The Minnesota Supreme Court ruled that a quorum for the Minnesota House is 68 members, voiding the House GOP’s actions. •Feb. 5, 2025: The Minnesota House reached a power sharing agreement with Lisa Demuth, Speaker of the House. Lisa Demuth is the first female Republican to serve in that role and first black person. •March 17, 2025: Representative Gottfried won the special election and the seat remained in DFL control, returning the Minnesota House to a 67-67 tie and enacting the co-chair model. Minnesota Senate: •Dec. 27, 2024: Senator Kari Dziedzic passed away, leaving the Senate in a 33-33 tie. •Jan. 28, 2025: Senator Clark was elected, returning the Senate DFL majority to 34-33 and ending the power-sharing agreement. •March 20, 2025: GOP Senator Eichorn resigned his senate seat after arrest for soliciting a minor. •April 29, 2025: Keri Heintzeman was elected as a GOP member, returning the Senate to 34-33. Federal Legislative overview (information current as of July 7, 2025): •In January 2025, the Trump administration began releasing Executive Orders (EOs) mostly aimed at undoing the previous administration’s EOs, cutting or freezing funding, and introducing new requirements for federal funding. •On March 12, 2025, three bonding projects were presented to Senator Klobuchar, Senator Smith, and Representative Omar: Oxford & Louisiana area infrastructure investment, Wayzata-Zarthan-16th corridor project, and Aquatic Park infrastructure improvements. •In May 2025, the Oxford & Louisiana area infrastructure investment and Wayzata- Zarthan-16th corridor projects were submitted to the federal congressionally directed Study session meeting of July 14, 2025 (Item No. 2) Page 3 Title: 2025 Legislative Session wrap-up spending (CDS) process. Oxford & Louisiana has moved forward and been submitted to the Senate Appropriations Committee for consideration. •On May 22, 2025, the House passed the One Big Beautiful Bill Act (OBBBA) in a 215 GOP to 214 DFL vote. •On July 1, 2025, the Senate passed OBBBA 51-50, with Vice President JD Vance casting the tiebreaking vote. •On July 3, 2025, the House passed the OBBBA version passed by the Senate. •On July 4, 2025, the OBBBA was signed into law. OBBBA Impacts to Minnesota: •Achieves “savings” by cutting federal Medicaid, health insurance, and SNAP support and increasing costs for states, counties, Tribes, providers and enrollees. •Imposes new hurdles designed to kick people off health care coverage and food support, disenrolling individuals who otherwise qualify. •Buries enrollees and already backlogged frontline workers in paperwork and red tape. •The projected to cost Minnesota will be in the hundreds of millions of dollars annually in lost federal funding. •Hundreds of thousands of Minnesotans will find it harder, if not impossible, to access the services and supports they depend on to live and thrive. Federal Executive Order Impacts to St. Louis Park: •Energy Efficiency and Conservation Block Grant (EECBG) Program Equipment Rebate Voucher: In 2024, the City of St. Louis Park was approved to spend $114,140 through the Energy Efficiency and Conservation Block Grant (EECBG) Program Equipment Rebate Voucher application. A full reimbursement of this project is expected in Spring 2025 when final reporting is completed and no other revenues were budgeted to fund this project. Per Executive Order Unleashing American Energy, disbursement of funds under this program are paused until the Director of Office of Management and Budget and Assistant to the President for Economic Policy have determined that the disbursements are consistent with any policy recommendations they have chosen to adopt. Should these appropriated funds not be distributed as awarded, St. Louis Park will have a hole in the 2024 capital fund budget. This award has been under Department of Energy review since April 2025. •Twin Homes Project (Multi-family Affordable Housing): In 2022, the City of St. Louis Park was awarded $3,000,000 through the Congressionally Directed Spending (CDS) program to create a multifamily land trust for affordable housing. These funds have been awarded but not yet obligated, since the city is still completing its environmental impact study on the project. Once that work is completed, the city will submit the paperwork to obligate the dollars. At that point, if the funding to construct four new twin homes (eight owner-occupied) for purchase for first time homebuyers is frozen, the project will not move forward. •Beltline LRT Station Parking Ramp construction: In 2017, the City of St. Louis Park was awarded through the Metropolitan Council a $6.2 million federal Congestion Mitigation & Air Quality (CMAQ) grant for the parking ramp construction at the Beltline Light Rail Station. The city has signed a subrecipient agreement with the Metropolitan Council for Study session meeting of July 14, 2025 (Item No. 2) Page 4 Title: 2025 Legislative Session wrap-up these funds and believe we will receive reimbursement as construction begins this summer. There were still several laws that passed this session that will impact the City of St. Louis Park and that were identified as city legislative priorities and positions. These include changes to open meeting law, cannabis taxes, the e-bike rebate program and Driving While Intoxicated (DWI) ignition interlock policies. These changes, as well as other bills of interest to the city that did not become law, are highlighted in the table below. Note that this table is not meant to provide a full view of all the laws passed this year, but feature those that have been recognized as high priority for both city staff and the council. The city’s bonding priorities included: 1.Oxford & Louisiana area infrastructure investment: this project will repair existing infrastructure, remove barriers to active transportation and transit, and promote environmental sustainability and climate preparedness. 2.Wayzata-Zarthan-16th corridor project: this project will repair existing infrastructure, remove barriers to access active transportation, transit, affordable housing, commercial and job centers. Both bonding requests have also been submitted through the 2026 Minnesota Management and Budget Office’s Capital Budget Request process. 2025 city legislative priorities 2025 passed legislation Next steps Building performance standards Support legislation to enact Building Performance Standards (BPS) for large existing buildings. BPS will establish required energy and/or carbon targets as well as a timeline to meet targets and resources to help building owners comply. Bill introduced in both House and Senate but not heard in committee or included in any final legislation. Continue to support. Construction and demolition debris diversion Support legislation that would include a diversion/recycling incentive and funding mechanism for materials coming from buildings being demolished or reconstructed. Increase fees on construction and demolition waste disposal to fund reuse and recycling of building materials. No legislation introduced. Continue to support. Group home licensing and registration Support a repeal of the legislation passed in 2024 that prohibited all cities from subjecting state licensed group assisted living facilities licensed under Minn. Stat. § 144G and Minn. Stat. § 245D.02 with six or fewer residents from any city-imposed life safety rental licensing requirements. The Legislature should recognize the importance of city rental licensing requirements that ensure minimum life safety standards and hold providers accountable and protect residents. Introduced in both bodies, heard in House Human Services but not included in Omnibus bill Continue to support HF 1477 to allow cities to license for life and safety to the city’s code. Housing policy Support legislation that expands housing opportunities (“missing middle” housing) across the state that helps to ensure all communities are planning for and able to accommodate a variety of housing types by supporting policies that allow local leadership on zoning and land use changes that are sensitive to individual community needs and housing goals including incentive-based approaches and options that can be tailored to each individual community and oppose policies that seek to impose one-size-fits- all rigid zoning and land use framework on cities. Includes incentive-based scoring for cities creating housing opportunities, did not restrict zoning or local control Monitor rule making for the categories that determine city eligibility for incentive- based scoring. Page 5 Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Study session meeting of July 14, 2025 (Item No. 2) Page 6 Title: 2025 Legislative Session wrap-up 2025 city legislative priorities 2025 passed legislation Next steps Housing TIF district modifications Support expanding authority for all cities to transfer unobligated pooled increment from a housing or redevelopment TIF district to support a local housing trust fund for any eligible expenditure under Minn. Stat. § 462C.16 and modify the housing district income qualification level requirements to allow the levels to vary according to individual communities to support deeply affordable units. Housing TIF – introduced in both House and Senate. Heard in House Taxes and included in House Omnibus Tax bill but not included in Final Tax bill. Continue to advocate on behalf of TIF district modifications to support HF 948, HF 949, HF 1159, HF 2006, HF 2324 (Kraft, Youakim) and SF 2337. Continue to collaborate with other impacted cities. Light rail and public safety Support legislation allocating funding to local jurisdictions for staffing and equipment to support public safety measures related to the light rail. No funding included in the Public Safety Omnibus bill for light rail public safety support. Funding included for Philando Castille Training Account. Continue to support while working to find alternative funding models. Study session meeting of July 14, 2025 (Item No. 2) Page 7 Title: 2025 Legislative Session wrap-up 2025 city legislative priorities 2025 passed legislation Next steps Paid Family and Medical Leave Support legislation that would: a) With respect to Earned Sick and Safe Time (ESST), amend Minn. Stat. § 181.9445, subd. 5 to incorporate a well-defined “public employee” definition, not to include unique positions in which there is not a formal employer-employee relationship such as paid appointed advisory, committee, or commission members, election judges, or other nontraditional positions. b) Minimize legal mandates to incentivize employers to establish and/or continue to provide more generous paid leave benefits to employees. Specifically, eliminate the expansion of mandated benefits to paid leave previously negotiated in good faith and/or adopted in personnel policies in excess of what is legally required. c) Provide funding that pays the full costs of any mandated employment- related expenditures. d) Avoid and eliminate expensive and time-consuming duplicative legal protections and processes for public employees, including those that preclude promotional probationary periods. e) Eliminate contradictory existing laws regarding public employment. Paid Family and Medical Leave – reduces the maximum premium levied by the Minnesota Department of Employment and Economic Development (DEED) from 1.2% of taxable wages to 1.1%. Work with DEED and League of Minnesota Cities (LMC) to determine implementation. Work with our benefits consultant to determine private or state plan. Reallocate solid waste management tax Support legislation that would eliminate the diversion of solid waste management tax revenue to the general fund for other purposes and provide to local government for recycling programs as originally intended, through increasing Select Committee on Recycling and the Environment (SCORE) recycling grants. Introduced in both bodies, not included in Omnibus bill. Continue to support. Study session meeting of July 14, 2025 (Item No. 2) Page 8 Title: 2025 Legislative Session wrap-up 2025 city legislative priorities 2025 passed legislation Next steps Underground infrastructure funding Support creating funding for underground infrastructure replacement. $87 million to Public Facilities Authority for Water infrastructure funding, $15 million to Metropolitan Council for Inflow and Infiltration Grant Program, and $12 million to the Pollution Control Agency for the new statewide drinking water contamination program and Capital Assistance Program. These grant programs are focused on water treatment in lower income rural areas and it is unlikely St. Louis Park would be eligible. In addition demand often outstrips supply in the state for these funds. The city will continue to monitor the qualifications for these programs and support additional funding streams for watermain replacement. Urban forest management Support establishing an ongoing state grant program with at least $15 million per year that is usable for urban forest management and wood waste utilization. Urban forests are facing numerous threats from Dutch elm disease, oak wilt, drought, storms and emerald ash borer. Related costs put pressure on city budgets. $1.9 million to the Metropolitan Council for community tree planting grants. Continue to support additional funding and, assuming eligibility, apply to Metropolitan Council for consideration. Study session meeting of July 14, 2025 (Item No. 2) Page 9 Title: 2025 Legislative Session wrap-up 2025 city legislative positions 2025 passed legislation Next steps Open meeting law Support for including virtual options for open meetings. City responses to COVID-19 illustrated that remote participation can allow for meaningful public interaction. Cities are in need of continued flexibility to utilize technology for meetings to protect the health of elected officials, city staff and the public and to keep pace with changes to remote technology in the future. Open meeting law modifications include allowing unlimited remote participation and removing stipulation that those participating remotely must be in a location that is open and accessible to the public Work with the city attorney and communications and IT staff on updated guidelines and policy for remote participation. Adult Use Cannabis Support a regulatory framework that maintains or expands local control and removes the fee-cap for local service. Future state regulations should allow cities to manage related registration fees so they may recoup the necessary compliance costs. Increases the tax rate from 10% to 15% and repeals local government cannabis aid (LGCA). LGCA was to be a small percentage of the total state tax distributed to cities based on the number of licensed cannabis retailers in each city. The increase in the tax rate and the repeal of LGCA is expected to raise $80 million for the state’s general fund in the first biennium and $132 million in the second. No city revenue was previously budgeted for this item because the total was expected to be very small and the first year of revenue was uncertain at the time of adopting the 2025 budget. E-bike rebate Support increasing funding for the e-bike rebate program and creating an additional program with greater rebates for cargo e-bikes, which are more suitable for replacing vehicle trips that require hauling. The 2023 legislative session created a new e-bike rebate program, which reached its funding capacity on the day it opened. E-bike rebate modifications The maximum rebate amount has been reduced from $1,500 to $750; rebates will be provided based on a lottery instead of first-come, first- served; and only Minnesotans with a disability or who meet certain income thresholds are eligible. Share information with residents on e-bike rebate modifications. Study session meeting of July 14, 2025 (Item No. 2) Page 10 Title: 2025 Legislative Session wrap-up 2025 emerged legislative positions 2025 passed legislation Next steps Assessing services Under current law, Minnesota Statutes 273.061 subdivision 8 defines 16 powers and duties of county assessing offices. For first class cities, cities retain all 16 powers and duties and counties have none. For all other cities with populations over 30,000, cities retain powers and duties 5- 16 and counties have powers and duties 1-4. The proposal would prevent a county from levying for assessment services 5-16 for cities that have an assessing office and are located in a county with a first class city and a population over 400,000. H.F. 2968 was read for the first time and referred to taxes on April 1, 2025. S.F. 3345 was read for the first time and referred to taxes on April 9, 2025. Due to last- minute disinformation initiated by the county on April 23, the April 24, 2025 hearing was canceled and not rescheduled this session. Continue to meet with impacted cities that have in- house assessing departments. N/A DWI Ignition Interlock Increases the amount of time that ignition interlock is required for repeat offenders, increases the look back period from 10 to 20 years and reduces obstacles for offenders to install an interlock device. Update staff in coordination with the criminal city attorney on legal changes associated with the DWI ignition interlock bill. Present considerations: Not applicable. Next steps: Staff continues to research additional positions and priorities as they emerge throughout the year. Priorities that were identified last year will be analyzed and considered for inclusion in the city’s 2026 legislative priorities. Staff will continue to stay informed on the possibility of a special session in the fall, pending decisions made at the federal level. Tentative 2026 legislative session timeline: •Nov. 17, 2025 – staff present legislative positions to council •Dec. 8, 2025 – council hosts delegation members to share legislative positions •Feb. 17, 2026 – legislative session begins •March 15 – 18, 2026 – National League of Cities Congressional City Conference •May 18, 2026 – legislative session ends Page 11 Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up City of St. Louis Park 2025 Legislative Priorities Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 12 Strategic Priorities The St. Louis Park City Council adopted the following strategic priorities in 2018. These priorities guide long-range planning as well as daily decisions and activities. St. Louis Park is committed to: Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. Continue to lead in environmental stewardship. Providing a broad range of housing and neighborhood-oriented development. Providing a variety of options for people to make their way around the city comfortably, safely and reliably. Creating opportunities to build social capital through community engagement. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 13 *New position in 2025 ‡League of Minnesota Cities (LMC) position Capital Investment Projects Increase access, replace aging infrastructure, promote climate preparedness and enhance pedestrian and bicycle connectivity. 1.Oxford/Louisiana Area Infrastructure Investment The planned public improvements for the Oxford/Louisiana area include construction and repair of aging sidewalks; critical repairs to water, sanitary sewer, and storm sewer facilities; general improvements or upgrades related to traffic and pedestrian safety, including replacement of streetlights, striping, and signs; replacement or repair of pavement and curb; roundabout construction; stormwater quality improvements and flood storage. This investment creates connections for all users to affordable housing, job centers, transit, and healthcare. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 14 *New position in 2025 ‡League of Minnesota Cities (LMC) position 2.Wayzata Boulevard/ Zarthan Avenue/ 16th Street improvements The planned public improvements for this project include replacement or repair of pavement, curb, and sidewalks; critical repairs to water, sanitary sewer, and storm sewer facilities; installation of a multi-use trail; general improvements or upgrades related to traffic and pedestrian safety; intersection upgrades including roundabout construction and signal replacement; stormwater quality improvements. This project improves connections for all users to affordable housing, commercial land uses, and job centers. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 15 *New position in 2025 ‡League of Minnesota Cities (LMC) position St. Louis Park Priority Positions A small subset of positions is selected each year to be the St. Louis Park specific legislative priorities for that session. Building performance standards*‡ Support legislation to enact Building Performance Standards (BPS) for large existing buildings. BPS will establish required energy and/or carbon targets as well as a timeline to meet targets and resources to help building owners comply. Construction and demolition debris diversion* Support legislation that would include a diversion/recycling incentive and funding mechanism for materials coming from buildings being demolished or reconstructed. Increase fees on construction and demolition waste disposal to fund reuse and recycling of building materials. Group home licensing and registration*‡ Support a repeal of the legislation passed in 2024 that prohibited all cities from subjecting state licensed group assisted living facilities licensed under Minn. Stat. § 144G and Minn. Stat. § 245D.02 with six or fewer residents from any city-imposed life safety rental licensing requirements. The Legislature should recognize the importance of city rental licensing requirements that ensure minimum life safety standards and hold providers accountable and protect residents. Housing policy*‡ Support legislation that expands housing opportunities (“missing middle” housing) across the state that helps to ensure all communities are planning for and able to accommodate a variety of housing types by supporting policies that allow local leadership on zoning and land use changes that are sensitive to individual community needs and housing goals including incentive-based approaches and options that can be tailored to each individual community and oppose policies that seek to impose one-size-fits-all rigid zoning and land use framework on cities. Housing TIF District Modifications‡ Support expanding authority for all cities to transfer unobligated pooled increment from a housing or redevelopment TIF district to support a local housing trust fund for any eligible expenditure under Minn. Stat. § 462C.16 and modify the housing district income qualification level requirements to allow the levels to vary according to individual communities to support deeply affordable units Light rail and public safety* Support legislation allocating funding to local jurisdictions for staffing and equipment to support public safety measures related to the light rail. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 16 *New position in 2025 ‡League of Minnesota Cities (LMC) position Paid Family and Medical Leave*‡ Support legislation that would: a) With respect to ESST, amend Minn. Stat. § 181.9445, subd. 5 to incorporate a well- defined “public employee” definition, not to include unique positions in which there is not a formal employer-employee relationship such as paid appointed advisory, committee, or commission members, election judges, or other non- traditional positions. b) Minimize legal mandates to incentivize employers to establish and/or continue to provide more generous paid leave benefits to employees. Specifically, eliminate the expansion of mandated benefits to paid leave previously negotiated in good faith and/or adopted in personnel policies in excess of what is legally required. c) Provide funding that pays the full costs of any mandated employment-related expenditures. d) Avoid and eliminate expensive and time- consuming duplicative legal protections and processes for public employees, including those that preclude promotional probationary periods. e) Eliminate contradictory existing laws regarding public employment. Reallocate solid waste management tax Support legislation that would eliminate the diversion of solid waste management tax revenue to the general fund for other purposes and provide to local government for recycling programs as originally intended, through increasing SCORE recycling grants. Underground infrastructure funding*‡ Support creating funding for underground infrastructure replacement. Urban forest management‡ Support establishing an ongoing state grant program with at least $15 million per year that is usable for urban forest management and wood waste utilization. Urban forests are facing numerous threats from Dutch elm disease, oak wilt, drought, storms and emerald ash borer. Related costs put pressure on city budgets. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 17 *New position in 2025 ‡League of Minnesota Cities (LMC) position Climate, Energy, and Buildings The City of St. Louis Park supports innovative strategies in the pursuit of a more sustainable climate worldwide, including the adoption of near-term emission reduction targets as described in the city’s Climate Action Plan. Amend state health code Support legislation that reduces barriers for businesses to use refillable containers for food and beverages to reduce single-use packaging waste. Building performance standards*‡ Support legislation to enact Building Performance Standards (BPS) for large existing buildings. BPS will establish required energy and/or carbon targets as well as a timeline to meet targets and resources to help building owners comply. Compost use Support the adoption of a food waste compost requirement in MNDOT specs. Legislation would support markets for compost use by providing a uniform standard to be used in city, county and state projects and close the circle between food waste collection, composting and compost use. Construction codes‡ Oppose legislation that would reduce current minimum building code and energy code standards or limit future adoptions of improved energy conservation standards. Construction and demolition debris diversion* Support legislation that would include a diversion/recycling incentive and funding mechanism for materials coming from buildings being demolished or reconstructed. Increase fees on construction and demolition waste disposal to fund reuse and recycling of building materials. Environment and sustainability‡ Support the adoption of ambitious policies and the creation of innovative programs to reach the goals of the state’s Climate Action Framework and the St. Louis Park Climate Action Plan. E-bike rebate program* Support increasing funding for the e-bike rebate program and creating an additional program with greater rebates for cargo e- bikes, which are more suitable for replacing vehicle trips that require hauling. The 2023 legislative session created a new e-bike rebate program, which reached its funding capacity on the day it opened. Fee-for-service programs‡ Oppose legislation that would eliminate local government ability to establish the amount of fee-for-service permitting, licensing, and inspection service delivery. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 18 *New position in 2025 ‡League of Minnesota Cities (LMC) position Reallocate solid waste management tax Support legislation that would eliminate the diversion of solid waste management tax revenue to the general fund for other purposes and provide to local government for recycling programs as originally intended, through increasing SCORE recycling grants. Residential fire sprinklers Oppose legislation that prohibits future adoption of residential fire sprinkler codes. Previous unsuccessful legislative efforts have attempted to prevent the state building code from requiring residential fire sprinkler systems, which poses safety risk. Right to cooling* Support legislation to ensure renters have a right to cooling. Pairing this legislation with additional funding for the state’s energy assistance program, as well as funds to ensure installed cooling systems are as energy efficient as possible, is needed to ensure this legislation does not have adverse consequences. Right-sizing vehicle registration fees* Support adjusting the state vehicle registration tax to more accurately reflect the external cost (including tailpipe emissions, road wear and tire pollution) of passenger automobiles with a GVWR over 6,000 pounds (3 tons). The registration tax for passenger automobiles is determined by the vehicle’s base value and age but not the vehicle’s weight. A credit could be allowed for passenger automobiles over 6,000 pounds that are fully electric, as well as those registered for commercial use. Smart salting‡ Support the creation of incentives for private salt applicators to reduce the volume of salt they apply to improve the effectives of salt application while reducing chloride pollution in waterways. Urban forest management‡ Support establishing an ongoing state grant program with at least $15 million per year that is usable for urban forest management and wood waste utilization. Urban forests are facing numerous threats from Dutch elm disease, oak wilt, drought, storms and emerald ash borer. Related costs put pressure on city budgets. Truth in labeling*‡ Support legislation that would reduce the amount of misinformation on product labels and disclosure through city collection system. Undergrounding power funding* Support funding for undergrounding power lines to harden against effects of climate change, including both more frequent and intense rainstorms and warmer winters icing lines. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 19 *New position in 2025 ‡League of Minnesota Cities (LMC) position Economic Development The City of St. Louis Park supports a thriving local economy of small and large businesses and strives to create a place where people can live, work, and play. Cashless Businesses* Support legislation that requires businesses to accept cash as a payment method. Individuals without bank accounts (unbanked) and those who do not utilize their bank accounts (underbanked) often rely on using cash to make purchases. Businesses that do not accept cash “cashless businesses” limit the ability of unbanked individuals to make purchases, leading to the unintended consequence of their exclusion from the local marketplace and further marginalization. Payment access for unbanked and underbanked populations is a racial equity and inclusion issue as it disproportionately impacts people of color, immigrants and other marginalized communities. DEED program funding‡ Support the continued annual funding of DEED programs at stable, sustainable or increased levels, as well as tools to invest in underserved areas of the state that would allow all regions to better prosper. Equal Access to Broadband Act*‡ Support the Equal Access to Broadband Act (HF 4182 and HF 3679) updates Minnesota telecommunications statutes to reflect the changing conditions of the market and extends local franchising authority in statute to allow Minnesota cities the ability to franchise wireline broadband providers. Also removes statutory barriers that require a supermajority voter approval for a city to provide municipal broadband. Property tax reduction for commercial properties purchased under community/commercial land trust arrangements Support a property tax classification rate reduction for commercial properties purchased under community/commercial land trust arrangements (similar to the 4d(2) classification rate established for homesteads purchased through community land trusts) to stimulate the creation and purchase of affordable commercial properties for limited income entrepreneurs throughout the state. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 20 *New position in 2025 ‡League of Minnesota Cities (LMC) position General Government The City of St. Louis Park supports good governance in the form of legal authority to help residents to thrive. Adult use cannabis‡ Support a regulatory framework that maintains or expands local control and removing the fee-cap for local service. Future state regulations should allow cities to manage related registration fees so they may recoup the necessary compliance costs. Aircraft Noise Support evaluating the effects of consolidated flight tracks because of RNAV on departures. Cable franchising authority‡ Support congress to recognize, support and maintain the exercise of local franchising authority. Municipal cable franchising is key to providing uniform quality, access and pricing to city residents. Earned sick and safe time‡ Support legislative clarification on the application of these rules for unique and limited city positions including seasonal employees. The 2023 legislature enacted a law requiring all employers to provide employees one hour of sick and safe time for every 30 hours worked. Employer mandates‡ Oppose any employer mandates that diminish the inherent managerial rights as they pertain to collective bargaining. Limiting public employers from determining the number of personnel hired could hinder the city’s crisis response and subjects cities to risk if they are unable to meet bargained terms due to external challenges such as a competitive labor market. Levy limits‡ Oppose levy limits or other proposed restrictions for local government budgets. Many local factors impact the annual decision-making around the property tax levy, including other non-tax revenue forecasts, infrastructure needs and changes to the local tax base and tax increment financing districts. Local control over the tax levy is a key tool in the city's toolbox for achieving long-term financial stability. Local control‡ Support local control as a principle that applies to many issues. Local governments must have sufficient authority and flexibility to meet the challenges of governing and providing residents with public services. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 21 *New position in 2025 ‡League of Minnesota Cities (LMC) position Open meeting law‡ Support including virtual options for open meetings. City responses to COVID-19 illustrated that remote participation can allow for meaningful public interaction. Cities are in need of continued flexibility to utilize technology for meetings to protect the health of elected officials, city staff and the public and to keep pace with changes to remote technology in the future. Safeguard public code employees‡ Support League of Minnesota Cities’ policy related to assaults on code compliance officials and inspectors. Because of the nature of their job, code enforcement officials can be subjected to verbal assaults, threats and physical violence. Under current law, an assault on a code enforcement official not enumerated in Minn. Stat. § 609.2231, subd. 6, while performing official business can only be charged as fifth degree assault, a misdemeanor, unless it results in substantial bodily harm. All code enforcement officials should be afforded the same protections under Minnesota Statutes, and the legislature should amend the statute to expand the employees covered by the statute Paid Family and Medical Leave*‡ Support legislation that would: a) With respect to ESST, amend Minn. Stat. § 181.9445, subd. 5 to incorporate a well- defined “public employee” definition, not to include unique positions in which there is not a formal employer-employee relationship such as paid appointed advisory, committee, or commission members, election judges, or other non- traditional positions. b) Minimize legal mandates to incentivize employers to establish and/or continue to provide more generous paid leave benefits to employees. Specifically, eliminate the expansion of mandated benefits to paid leave previously negotiated in good faith and/or adopted in personnel policies in excess of what is legally required. c) Provide funding that pays the full costs of any mandated employment-related expenditures. d) Avoid and eliminate expensive and time- consuming duplicative legal protections and processes for public employees, including those that preclude promotional probationary periods. e) Eliminate contradictory existing laws regarding public employment. Public health insurance‡ Support the continued expansion of the state’s public health insurance program MinnesotaCare, allowing all Minnesotans to buy in to the program. The 2023 legislative session expanded Minnesota’s state-funded health insurance program to let residents with incomes above 200% of the federal poverty level enroll as well as undocumented Minnesotans. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 22 *New position in 2025 ‡League of Minnesota Cities (LMC) position Wireless Provider Franchising Authority*‡ Support congress to recognize, support and maintain the exercise of local franchising authority. Municipal wireless provider franchising is key to providing uniform quality, access and pricing to city residents. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 23 *New position in 2025 ‡League of Minnesota Cities (LMC) position Housing The City of St. Louis Park supports housing for all residents in the city including policies that build and maintain housing and aid in associated costs. Community land trust 4d tax classification*‡ Support the current .75 class-rate reduction for community land trust properties and support efforts by the Minnesota Community Land Trust Coalition and other housing preservation stakeholders to develop property tax valuation modifications to lower property taxes for qualifying low-income sales-price-restricted properties enrolled in CLT. Corporate ownership of single-family homes Support additional research on the impacts of home ownership by corporate entities and tools to address and limit impacts from corporate ownership of single-family houses and encourage increased access to homeownership through programs and resources for Minnesota families to build equity and wealth. Group home licensing and registration*‡ Support a repeal of the legislation passed in 2024 that prohibited all cities from subjecting state licensed group assisted living facilities licensed under Minn. Stat. § 144G and Minn. Stat. § 245D.02 with six or fewer residents from any city-imposed life safety rental licensing requirements. The Legislature should recognize the importance of city rental licensing requirements that ensure minimum life safety standards and hold providers accountable and protect residents. Housing policy*‡ Support legislation that expands housing opportunities (“missing middle” housing) across the state that helps to ensure all communities are planning for and able to accommodate a variety of housing types by supporting policies that allow local leadership on zoning and land use changes that are sensitive to individual community needs and housing goals including incentive-based approaches and options that can be tailored to each individual community and oppose policies that seek to impose one-size-fits-all rigid zoning and land use framework on cities. Housing TIF District Modifications‡ Support expanding authority for all cities to transfer unobligated pooled increment from a housing or redevelopment TIF district to support a local housing trust fund for any eligible expenditure under Minn. Stat. § 462C.16 and modify the housing district income qualification level requirements to allow the levels to vary according to individual communities to support deeply affordable units Prohibition on discrimination Support a statewide prohibition on discrimination against source of income for renters receiving rental assistance. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 24 *New position in 2025 ‡League of Minnesota Cities (LMC) position Rental rehab loan program Support legislation making resources and methods available to maintain and improve existing affordable homes, including publicly subsidized deeply affordable, and housing stock that is aging such as naturally occurring (unsubsidized) affordable housing. Support voucher acceptance Support additional funding for the housing choice voucher programs and other rental assistance programs and financial, tax and/or other incentives for rental property owners to participate in these programs. TOD Housing fund Support legislation to increase the ability of traditional economic development tools, including tax increment financing, tax abatement, and special service districts, to address the needs of transit-oriented development. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 25 *New position in 2025 ‡League of Minnesota Cities (LMC) position Public Safety The City of St. Louis Park supports public safety policies and rules that help our front-line workers and ensure equitable and safe outcomes for residents. Criminal background checks Support preventing individuals who are not legally able to purchase a gun from doing so without background checks at gun shows, online, or in private transactions. Emergency medical services‡ Support a solution for EMS services that balances the needs of residents and providers statewide. Support allowing local units of government to designate which licensed provider may serve their communities and to determine the appropriate level of service. Current regulations do not require ambulance services to disclose important data points that would ensure a community is receiving quality services. Expansion of legal fireworks‡ Oppose legislation that expands fireworks in Minnesota. Fireworks can cause serious injuries and fires. The legal sale of consumer fireworks undermines fire prevention efforts, and their sale and use increase local public safety enforcement, emergency response and fire-suppression costs. Fire mutual aid*‡ Support passage of a statute to provide uniform provisions when fire departments assist each other. These provisions should include statutory definitions and clarifications for: a) Who is in command of the mutual aid scene. b) Who will cover the firefighters for worker's compensation. c) How liability and property claims will be handled. d) Who will pay for expendable supplies such as foam. e) When fire departments will charge each other for these services. f) The ability for fire departments to opt out by having a separate written agreement. Gun violence protective orders Support allowing law enforcement in certain cases to temporarily remove any guns in an individual's possession and to prohibit new gun purchases for the duration of the order. Health insurance coverage for disabled public safety officers‡ Support this mandate being fully funded by the state in perpetuity. In 2023, a bill passed reinstating full funding to reimburse employers for the cost of continued health insurance for duty disabled peace officers and firefighters, but this is one-time funding that is expected to run out in approximately three years. Light rail and public safety* Support legislation allocating funding to local jurisdictions for staffing and equipment to support public safety measures related to the light rail. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 26 *New position in 2025 ‡League of Minnesota Cities (LMC) position Mandated law enforcement training‡ Support continuing the Peace Officer Standards and Training (POST) Board training reimbursement allocation to local agencies. Current funding is not permanent and sunsets in 2024. National Fire Protection Association (NFPA) standards*‡ Support permanent and ongoing state funding to assist fire departments statewide to improve emergency response and work toward industry standards. Opposes any attempt to mandate standards for minimum staffing levels of fire, specialized or EMS vehicles controlled by units of local government. Also opposes any attempt to adopt a standard dictating or affecting the response time of any fire, specialized or EMS vehicle. If mandated, the NFPA standards would force local governments to shift dollars from fire prevention programs to fire suppression activities, potentially increasing the risk of fire and the danger to local firefighters. Public safety aid*‡ Support legislation that increases aid for public safety. Race data collected on Minnesota Driver’s licenses and state identification Support the Minnesota Department of Public Safety to require individuals self- identify their race when applying for a driver's license or state identification. This anonymized, aggregated data would be shared with the Office of Traffic Safety for research, analysis and reporting to monitor traffic stop disparities. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 27 *New position in 2025 ‡League of Minnesota Cities (LMC) position Transportation and Infrastructure The City of St. Louis Park supports providing a variety of options for people to make their way around the city comfortably, safely, and reliably. Metro Green Line extension Support the continued work and completion of the Metro Green Line Extension Project to provide businesses, residents and visitors with multiple transportation options. Texas Ave. and Minnetonka Blvd. Support Hennepin County partnering in Texas Avenue/ Minnetonka Blvd intersection reconstruction. Texas Avenue between Lake Street and Wayzata Boulevard is one of the few continuous north-to-south roadway connections in St. Louis Park. To finish the upgrade of the Texas Ave. corridor, the new intersection would include separated bicycle facilities, sidewalk, improved driver sightlines, signal replacement and ADA upgrades. Transit financing‡ Support stable and growing revenue sources to fund the operating budget for all regional transit providers now and into the future. Transportation funding‡ Support sufficient and stable statewide transportation funding, for all modes of travel and local control to serve long-term needs. A comprehensive transportation system is a vital component for meeting the physical, social and economic needs of our state and metropolitan region. Railway safety‡ Support accountability, safety and funding of accident prevention, as well as new rules around railway safety. Railways connect local and regional economies to the global marketplace and generate billions of dollars in economic activity. Recent high-profile freight train derailments, however, have highlighted safety concerns in an industry that travels through thousands of communities, including St. Louis Park. Underground infrastructure funding*‡ Support creating funding for underground infrastructure replacement. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page 28 2025 Legislative Session Wrap Up The Legislature has passed all of its constitutionally mandated budget for Fiscal Years (FY) 2026-2027. The overall budget for fiscal years 2026-2027 is set at around $66 billion, a decrease from the previous budget of $72 billion. A one day special session was called on June 9th, and concluded early morning June 10th. Some highlights include: Agriculture: Chapter 34 The Agriculture Committee had a $9 million target to spend from the general fund. Chair Putnam, who helped lead negotiations, said the bill this year aims to combat two crises: an impending recession for farmers and increasing food insecurity for Minnesotans. In regards to food security, the bill removes the Farm to Food Shelf program entirely, allocating $2 million for FY26-27 in dairy grants in its place, cutting out money for protein or produce. It invests $1.4 million in Local Food Purchasing Grants and over $3.1 million for a farm to schools program, which includes early childhood centers. Besides hunger relief, the bill maintains increased funding to the agriculture emergency account, aid for depredation for wolves and elk, biofuel grants, livestock grants for protecting animals against diseases and various support programs for farmers, including mental health outreach and innovation grants. Cannabis Policy: Chapter 31: The Cannabis Policy bill includes several key policy changes aimed at accelerating implementation and improving access for equity applicants. Lawmakers authorized provisional licensing for social equity applicants, allowing them to prepare sites and navigate local approval processes ahead of full licensure. The report also clarifies background check procedures and expands the definition of social equity to include individuals from overpoliced communities, veterans, and those with past cannabis-related convictions. Municipalities retain authority over time, place, and manner restrictions but may not ban operations outright. While these provisions aim to streamline entry into the market, small businesses may continue to face challenges related to compliance, local zoning, and startup costs. Capital Investment: Chapter 14 and Chapter 15 Two Capital Investment bills passed early Tuesday morning. No local projects were included in the bills. Chapter 14 is a cash bill with a $10.5 million budget. It includes $3.5 million to the First District Association, an independent dairy cooperative in Litchfield, and $2.5 million to the Minnesota Housing Finance Authority for a public housing program in Washington County. The second bill, Chapter 15 is a general obligation bond funded bill that focuses largely on core infrastructure needs and investments in state asset preservation. $290 million is dedicated for local roads and improvement projects, and $55 million is for the building of a new 50-bed psychiatric treatment facility, as part of the Anoka Metro Regional Treatment Center. Local law enforcement and mental health leaders requested the beds in order to keep people suffering from mental health issues from being held in jails. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page Ϯ9 Commerce: Chapter 4 funds the Department of Commerce and Office of Cannabis Management. To fund the Reinsurance program, $145 million is being transferred from the Health Care Access Fund to combine with federal funding and existing funds in the Premium Security Account. The bill relaxes the state’s prohibition of cadmium paint and lead keys after July 1. The bill creates a new ombudsperson position to facilitate disputes between owners and homeowner associations. Additionally, the final bill requires places of entertainment with an occupancy of at least 100 people to provide free water to attendees and allow attendees to bring in sealed bottled water or an empty water bottle to fill. The most controversial portion of the Commerce bill is in regard to changes in the Medicare supplement policy area, Medigap, with industry and advocates disagreeing on how best to balance market forces while providing the best coverage for seniors. Education: Chapter 10 was given a zero funding target for this biennium and a $420 million cut in 2028-2029. School districts’ funding continues to be tied to inflation and will receive an increase to the funding formula of 2.7% in 2026 and 3% in 2027. Notable funding cuts were made to special education transportation, charter school reimbursement, student support personnel aid, school library aid, and some nonprofit service providers. There were no cuts to nonpublic pupil aid or MDE agency funding. The bill creates a Blue Ribbon Council on Special Education tasked with finding $250 million in cost reduction for 2028-2029. Policy provisions include attendance and truancy language, cardiac emergency response plans, READ Act implementation, and a new complaint procedure within MDE. The bill contains working groups on developmental delay age limit, seclusion, and compensatory revenue. Environment: Chapter 1 the Environment omnibus bill contains funding for the DNR, MPCA, and several smaller agencies. There are some policy changes around PFAS, abandoned water craft, elimination of the statewide shotgun zones, and creates new fees on boats and fishing/hunting. This bill contains the funding for Minnesota’s parks and trails system, the LCCMR recommendations, recommendations of the Lessard-Sams Outdoor Heritage Council, permitting reform and much more. The most contentious piece was over the permitting reform, the final version of which has a narrow application. Energy: Chapter 7 This year’s “lights on” energy omnibus bill was modest in both scope and ambition, primarily focused on maintaining existing operations and defending last biennium’s clean energy gains. The $47.44 million package directs most funding to the Department of Commerce’s energy division, preserving programs like community solar gardens, energy benchmarking, Clean Energy Resource Teams, and pre-weatherization efforts. Policy changes were minimal, with the most notable being a new natural gas price spike mitigation fund. While DFL authors hailed the bill as a defensive win for Minnesota’s 100% carbon-free by 2040 goals, critics argued it missed opportunities for broader reform or deregulation. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page ϯ0 Health and Human Services: Chapter 3 the Health and Human services area was required to cut $97 million in FY ‘25-’27 and $297.8 million in FY ‘28-’29, and does reappropriate some funds. This area of the budget also includes Childcare/Early Childhood provisions. There are reductions in the Health Care Access Fund proposals, Non Emergency Medical Transport, Chiropractic board, DCYF Transition funding, Tribal planning funds, Prescription Drug Rebate Gross Revenue clawback, and mobile crisis grants. The Legislature did fund Childcare improvement grants, food shelves and food banks, childcare security camera grants, Early Learning Scholarships to childcare workers, child welfare IT modernization. IT modernization and infrastructure is where most of the Children and Families budget target went to. There is partial restoration of cannabis grants reappropriated from last biennium to help offset new cuts to local public health programs The Health and Human Services budget spends a large sum of funding on Federally Qualified Health Centers, Ambulance operating deficits and training grants, audio-only telehealth continuation, Pharmacy payments, and a reorganization of how Medical Assistance is billed for psychotherapy (this is contingent upon federal approval). MinnesotaCare for Undocumented Immigrants was repealed for those over the age of 18 as part of the final globally negotiated deal. Higher Education: Chapter 5 this legislative session brought significant shifts to higher education funding and policy in Minnesota, impacting the Office of Higher Education with slight State Grant increases but cuts to EAPS and Hunger-Free Campus grants in later years, while Minnesota State Colleges and Universities face flat core funding and the elimination of substantial one-time aid and student tuition relief post-FY’26, alongside the ending of the Campus Safety Grant Program. The University of Minnesota will see declines in special appropriations for research and medical programs in FY '27-28 and changes to North Star Promise, while Mayo Clinic's state funding is entirely eliminated after FY’26. Additionally, key policy changes include the campus sexual misconduct reporting changes in FY '27-28, clarified Tribal College Supplemental Grants, the introduction of the College Financing Literacy Act, and an opiate antagonist access mandate for MnState. Housing: Chapter 32 The Housing budget bill appropriates $15 million of one time general fund dollars on the following programs: $2M to the Challenge program in FY ‘26, $2 million to the Workforce Homeownership Program in FY ‘26, $2M to the Greater MN Housing Infrastructure Program in FY’26, and $8.35 million to the Family Homelessness Prevention and Assistance Program (FHPAP). The bill provides an ongoing $900,000 base budget increase to FHPAP and authorizes the state to bond for $50 million in Housing Infrastructure Bonds. The Housing bill also includes a significant amount of housing policy provisions, highlights include: requiring MHFA to work with the affordable housing industry leaders to develop a preservation framework that will provide modifications to existing housing to ensure they stay available and affordable, expanding the eligible uses for HIB’s to be used for adaptive reuse projects, modifies the high rise sprinkler program to allow for loans in addition to grants, and requires MHFA to report on the financial health of the affordable housing projects within the agency’s portfolio. Human Services: Chapter 9 the Human Services Budget area was required by the joint targets to cut $270 million in FY ‘26-27, and $820 million in FY ‘28-29. The committee met this goal while still allocating funds to different programs. We saw the largest cuts in the Disability area untying DWRS to inflation and under Disability Waiver - DUB services. We saw funding increases for Early Intensive Developmental and Behavioral Intervention (EIDBI), Substance Use Disorders MA Rates, Safe Harbor, Homeless Youth, and expanded bed capacity at Anoka Metro Regional Treatment Center. Demolition and rebuilding of the Anoka facility was also funded through the Capital Investment bill. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page ϯ1 Jobs: Chapter 6 the jobs bill, unlike other areas of the budget, has dedicated revenue specifically for the committee. The committee’s budget contains numerous provisions surrounding childcare and early education programs including Child Care Wayfinder, facility grants, and childcare worker early learning scholarships. Paid Family and Medical Leave is fully funded to stand up IT systems, outreach, staffing, and employer assistance—but receives no general-fund appropriation in FY ‘27–28 . Anti-compete enforcement receives $200,000 in each biennium under the Department of Labor & Industry budget. The bill invests in apprenticeship programs and high wage high demand job training. An ongoing topic of conversation in this committee was direct appropriations, the final bill does include direct appropriations. The bill also includes a task force to look at best practices for direct appropriations vs. competitive grants on how to make systems and processes work best for all. Judiciary and Public Safety: Chapter 35 the Public Safety and Judiciary committee spent $107 million in new funding for FY 2026-2027, and $112 million in 2028-2029. Investments include maintaining base operations for courts and agencies, additional funding to the courts for Justice Partner Access and health insurance, ARMER radios, forensic examiner rates, modest court staff income increases, hometown heroes, and police training by the POST Board. No cuts were made to the community crime and violence prevention fund. Stillwater prison will be closed by 2029. Policy provisions include judicial official data privacy, data privacy protection for people with disabilities, requiring law enforcement to use an entrance system, drone use in investigations, a task force on mandatory minimums, clarification on pipe fluid, nudification, domestic abuse advocate privileges, tracking fleeing motor vehicles, and victim notification of apologies. Legacy: Chapter 36 includes $162 million for the Outdoor Heritage Council, $305 million over the next two years in the Clean Water Fund, $130 million for the Parks and Trails fund, and $180 million in Arts and Cultural Heritage fund. This bill prioritized competitive grants for community festivals and cultural organizations over direct appropriations compared to previous years. Pensions: Chapter 37 includes Public Employees Retirement Association (PERA) eligibility provisions to clarify that public employees must participate in one of the three pension plans administered by PERA if the employee is expected to exceed the monthly salary threshold of $425. PERA time periods after taking office during which an elected public official who wants to be covered by the PERA General Employees Retirement Plan must sign an election form (within 30 days) and file the election form with PERA (within 60 days). The Teacher Retirement Association pension plan lowers the age from 62 to 60 at which a member becomes eligible for benefits with a lower associated benefit reduction. There is also an inserted time period during which a city manager must file an election to be excluded from coverage by the PERA General Plan (within 60 days of commencing employment). It also includes language that defines the duty disability benefit for members of the PERA Local Government Correctional Service Retirement Plan (PERA Correctional Plan) to incorporate into the calculation of the benefit amount the 2.2% multiplier that was added by legislation in 2024, and applies to years of service after June 30, 2025. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page ϯ2 State Government and Elections: Chapter 39 the 2025 State and Local Government and Elections Conference omnibus bill includes new fraud enforcement tools allowing agencies to share data and withhold payments in cases of suspected fraud, alongside whistleblower protections and annual audit compliance tracking by the Office of the Legislative Auditor. It expands the Secretary of State’s authority to assess late filing penalties, remove fraudulent business registrations, and ban deceptive mailings. Local governments have new flexibility to post notices online, raise audit thresholds, install utilities in public rights-of-way, and restructure utility commissions. Elections provisions tighten absentee voting security, expand student voter access, restrict polling places near cannabis sales, and boost campaign finance oversight. Sports Betting: Sports betting was not passed in 2025. Taxes: Chapter 13 had a reduction of $118 million in Fiscal Year 2026-27 and $190 million in FY 2028-2089. The major tax provisions include a repeal of the electricity sales tax exemption to data centers, an increase to the cannabis gross receipts tax rate from 10% to 15%, a June accelerated sales tax collection, and an expansion of the Research and Development Tax Credit. Proposed cuts to local government aid and county program aid, local homeless prevention aid and the state affordable housing aid were not included in the final bill. Transportation:Chapter 8 raises operating adjustments for the State Patrol and the operations and maintenance of state roads and trunk highways. The bill provides $650 million in funding for Duluth’s Blatnik Bridge, $454.09 million for state road construction, and $97.03 million from the Trunk Highway Fund to construct a State Patrol metro headquarters. The Metropolitan Council is authorized to loan $250 million to the Department of Transportation for highway and bus rapid transit construction coordination. The final bill increases the surcharges on electric vehicles and fees for charging stations, creates a new local government funding gap assistance account, and includes several items promoting work zone safety in driver’s education and driver’s exams. Liquefied fuel and road construction materials are now exempted from the Retail Delivery Fee. Language that would have changed the distribution of the metropolitan area sales tax, shifting transportation funds from counties to the Metropolitan Council, was not included in the final bill. What’s Next? The 2026 Legislative Session starts on February 17, 2026. Study session meeting of July 14, 2025 (Item No. 2) Title: 2025 Legislative Session wrap-up Page ϯ3 Meeting: Study session Meeting date: July 14, 2025 Written report: 3 Executive summary Title: Arrive + Thrive update - Wards 1, 2 and 3 Recommended action: No action at this time. Policy consideration: The city council will be asked to approve the plan document at an upcoming meeting. Summary: Since 2023, the city has been working on the Arrive + Thrive project to create gateway plans for the areas around the three METRO Green Line Extension light rail stations: Beltline Boulevard, Wooddale Avenue and Louisiana Avenue, and the commercial corridor of Excelsior Boulevard west of Highway 100. Collectively, these areas made up the “gateways” analyzed in the Arrive + Thrive plan. These gateway plans provided an opportunity to further the vision of these areas while utilizing the city’s strategic priorities as a planning framework. The project set out to not only create a planning document, but to emphasize implementation and track progress and successes. The plan was developed with input from an advisory committee, a variety of community engagements, the planning commission and the city council. The council last discussed the plan at a study session on Oct. 21, 2024. Most recently, the planning commission reviewed the final gateway plans on June 18, 2025. The emphasis of their discussion was on elements of Arrive + Thrive that could be implemented through their current work on the zoning code update and the upcoming comprehensive plan. They also gave feedback on what information they would find useful to track implementation of the plan. The plan document has been finalized based on city council discussion. The city council will be asked to approve the Arrive + Thrive gateway plans document in August 2025. Staff will then work to establish an online implementation tracker for the plans. The gateway plans will help inform future policy decisions and help prioritize future projects within the gateway areas. Financial or budget considerations: The Arrive + Thrive gateway plans include a number of recommended implementation actions; many of these actions will require staff time, city resources and possibly dedicated funding to implement over the next 20 years. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Final draft Arrive + Thrive Gateway plans: Chapter 1 - Framework, Chapter 2 - Beltline Gateway plan, Chapter 3 - Wooddale Gateway plan, Chapter 4 - Louisiana Gateway plan, Chapter 5 - West Excelsior Gateway plan, Chapter 6 - Impact Analysis and Chapter 7 - Implementation. Hard copies available upon request Prepared by: Laura Chamberlain, senior planner Reviewed by: Sean Walther, deputy community development director / planning manager Approved by: Kim Keller, city manager