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Comprehensive
Annual Financial Report
of the
CITY OF COTTAGE GROVE,
MINNESOTA
For the Year Ended
December 31, 2020
Prepared by
City's Finance Department
City of Cottage Grove
12800 Ravine Parkway South
Cottage Grove, MN 55016
City of Cottage Grove
Table of Contents
Introductory Section Page
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
Elected Officials and Administration 9
Organization Chart 10
Financial Section
Independent Auditor's Report
13
Management's Discussion and Analysis
17
Basic Financial Statements
Government -Wide Financial Statements
Statement of Net Position
31
Statement of Activities
32
Fund Financial Statements
Balance Sheet — Governmental Funds
34
Reconciliation of the Balance Sheet to the Statement of Net Position —
Governmental Funds
37
Statement of Revenues, Expenditures, and Changes in Fund Balances —
Governmental Funds
38
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Statement of Activities — Governmental Funds
40
Statement of Net Position — Proprietary Funds
41
Statement of Revenues, Expenses, and Changes in Fund Net Position —
Proprietary Funds
42
Statement of Cash Flows — Proprietary Funds
44
Notes to Financial Statements
45
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — General Fund
90
Schedule of Changes in Total OPEB Liability and Related Ratios
92
Schedule of City's Proportionate Share of Net Pension Liability
— General Employees Retirement Fund
93
Schedule of City's Proportionate Share of Net Pension Liability
— Police and Fire Retirement Fund
93
Schedule of City Contributions — General Employees Retirement Fund
95
Schedule of City Contributions — Police and Fire Retirement Fund
95
Schedule of Changes in Net Pension Liability and Related Ratios
— Fire Relief Association
96
Schedule of City and Non -Employer Contributing — Fire Relief Association
98
Notes to Required Supplementary Information
100
Combining and Individual Fund Statements and Schedules
Nonmajor Governmental Funds 109
Combining Balance Sheet — Nonmajor Governmental Funds 113
City of Cottage Grove
Table of Contents
Financial Section (Continued)
Combining and Individual Fund Statements and Schedules (Continued)
Page
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds
114
Nonmajor Special Revenue Funds
115
Subcombining Balance Sheet — Nonmajor Special Revenue Funds
116
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Special Revenue Funds
118
Nonmajor Debt Service Funds
121
Subcombining Balance Sheet — Nonmajor Debt Service Funds
122
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Debt Service Funds
124
Nonmajor Capital Projects Funds
127
Subcombining Balance Sheet — Nonmajor Capital Projects Funds
128
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Capital Projects Funds
130
Schedules of Revenues, Expenditures, and Changes in Fund Balances — Budget
and Actual
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — Recycling Special Revenue Fund
132
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — Storm Water Maintenance Special Revenue Fund
133
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — Forfeiture/Seizure Special Revenue Fund
134
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — Ice Arena Special Revenue Fund
135
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — Golf Course Special Revenue Fund
136
Schedule of Revenues, Expenditures, and Changes in Fund Balances —
Budget and Actual — HERO Center Operations Special Revenue Fund
137
Schedules of Revenues, Expenditures, and Changes in Fund Balances
COVID-19 Pandemic Relief Special Revenue Fund
138
Internal Service Funds
139
Combining Statement of Net Position — Internal Service Funds
140
Combining Statement of Revenues, Expenses, and Changes in Net
Position — Internal Service Funds
141
Combining Statement of Cash Flows — Internal Service Funds
142
Economic Development Authority Component Unit
143
Combining Balance Sheet — All Governmental Fund Types — Economic
Development Authority Component Unit
144
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances — All Governmental Fund Types — Economic
Development Authority Component Unit
145
City of Cottage Grove
Table of Contents
Financial Section (Continued)
Supplementary Financial Information
Page
Combined Schedule of Bonded Indebtedness
148
Debt Service payments to Maturity
150
Deferred Tax Levies
153
Subcombining Balance Sheet — Pavement Management Debt Service Schedule
154
Subcombining Statement of Revenues, Expenditures, and Changes in Fund
Balance — Pavement Management Debt Service Schedule
156
Subcombining Balance Sheet — Tax Increment Construction Revolving Schedule
158
Subcombining Statement of Revenues, Expenditures, and Changes in Fund
Balance —Tax Increment Construction Revolving Schedule
160
Subcombining Balance Sheet — TIF Debt Service Revolving Schedule
162
Subcombining Statement of Revenues, Expenditures, and Changes in Fund
Balances — TIF Debt Service Revolving Schedule
163
Statistical Section Section
Page
Net Position by Component
1
168
Changes in Net Position
2
170
Fund Balances of Governmental Funds
3
174
Changes in Fund Balances of Governmental Funds
4
176
Assessed and Estimated Actual Value of Taxable Property
5
178
Property Tax Rates Direct and Overlapping Governments
6
180
Principal Property Taxpayers
7
181
Property Tax Levies and Collections
8
182
Ratios of Outstanding Debt by Type
9
184
Ratios of General Bonded Debt Outstanding
10
186
Direct and Overlapping Governmental Activities Debt
11
187
Legal Debt Margin Information
12
188
Demographic and Economic Statistics
13
190
Principal Employers
14
191
Full -Time Equivalent City Government Employees by Function
15
192
Operating Indicators by Function/Program
16
194
Capital Asset Statistics by Function/Program
17
196
Cottage
Grove
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INTRODUCTORY SECTION
Cottage
Grove
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MmCottage
Grove
here Pride ar►d prosperity Meet
May 18, 2021
To the Honorable Mayor, Members of the City Council and Citizens of the City of Cottage Grove:
Minnesota statutes require all cities to submit an annual audited financial statement to the Office of the
State Auditor. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial
Report of the City of Cottage Grove for the year ended December 31, 2020.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal control standards that it has
established for this purpose. Because the cost of internal control should not exceed anticipated benefits,
the objective is to provide reasonable, rather than absolute assurance that the financial statements are
free of any material misstatements.
BerganKDV, Ltd., independent certified public accountants have issued an unmodified ("clean")
opinion on the City of Cottage Grove's financial statements for the year ended December 31, 2020. The
independent auditors' report is located at the front of the financial section of this report.
Management's discussion and analysis (MD&A) immediately follows the independent auditors' report
and provides a narrative introduction, overview, and analysis of the basic financial statements. This
letter of transmittal is designed to complement the MD&A and should be read in conjunction with it.
Profile of the City
Cottage Grove was organized as a village on July 13, 1965 and was incorporated as a city on January 1,
1974. It is a suburban community located on the southern border of Washington County, sixteen miles
southeast of downtown St. Paul. The City currently occupies 34.3 square miles of land. The 2010
Census established the City population at 34,589: recent data estimates 2020 population at 38,555.
Cottage Grove operates as a Statutory Plan A City under Minnesota law. Policy making and legislative
authority are vested in a City Council, consisting of the Mayor and four other members, elected at large
and on a non -partisan basis. Terms of office are staggered four year terms, with elections held in each
even -numbered year. The City Council is responsible for passing ordinances, adopting the budget and
appointing members of the various citizens' advisory boards. In addition, the Mayor and Council
appoint a full-time City Administrator, who is responsible for overall supervision of City operations.
The City provides a full range of municipal services. These services include police and fire protection,
ambulance services, parks and park facilities, a golf course, recreational programming, an ice arena,
street construction and maintenance, water, sewer and storm water utilities, planning and zoning, and
general administrative functions.
The Economic Development Authority (EDA) of the City of Cottage Grove is a separate legal entity
organized pursuant to Minnesota Statute 469. There are seven members of the EDA who are appointed
by the City Council; two appointees are Council members and the five others are appointed from the
community. The EDA is included in this financial report as a discretely presented component unit, due
to the EDA's relationship of financial benefit or burden to the City.
CITY OF COTTAGE GROVE • 12800 Ravine Parkway • Cottage Grove, Minnesota 55016
www.cottage-grove.org • 651-458-2800 • Fax 651-458-2897 • Equal Opportunity Employer
Letter of Transmittal
May 18, 2021
Profile of the City (Continued)
The annual budget serves as the foundation for the City of Cottage Grove's financial planning and
control. The budget incorporates the City's financial policies, financial operations, debt management,
reserves and investments. The process by which the biennial budget document is prepared begins with
the submission of department appropriation requests in June. The requests, along with projected
revenues and stated City Council strategic goals, provide the starting point for budget development.
Collaborative meetings are held with City staff and workshops are held with the City Council to refine
the budget document in advance of the submission of the preliminary tax levy in September each year.
The preliminary levy may be reduced after it is adopted, but cannot be increased. An information session
is held for taxpayers at the first City Council meeting in December in advance of adoption of the final
levy and budget. The Council is required to adopt a final budget by no later than December 281h of each
year.
Extraordinary Event
In March 2020, the World Health Organization (WHO) declared the COVID-19 outbreak a global
pandemic, the President of the United States declared a national state of emergency and Minnesota
Governor Tim Walz issued Executive Orders requiring all Minnesota residents to shelter in place and
ordering the closure of all schools and non -essential businesses. These orders were meant to slow the
spread of the coronavirus and manage health care resources. Inevitably, the economic impact of all these
orders was extreme. Unprecedented job losses combined with immediate revenue losses for large
segments of the economy (entertainment, hospitality, personal services, food and beverage et.al.)
resulted in a sudden recession.
The United States Congress moved swiftly to pass $2 trillion in bi-partisan economic relief for workers,
families and small business; aka, the Coronavirus Aid, Relief and Economic Security (CARES) Act.
$150 billion of these funds under the CARES Act provided payments to State, Local and Tribal
governments to assist them in navigating the COVID-19 outbreak.
The City of Cottage Grove received $2.8 million in CARES Act funding which was used to finance
personal protective equipment (PPE), supplies, equipment and technology to enable physical distancing
and distance working, health benefits for those experiencing exposure to COVID-19 and public safety
staffing to respond to community needs.
Local Economy
Cottage Grove benefits from a significant amount of developable land and a location within the
economically prosperous Minneapolis/St. Paul seven county metropolitan area. The City's tax base is
80% residential and 20% commercial/industrial property. Total taxable market value in 2020 was $3.7
billion. Growth in taxable value for 2021 is expected at 8% due to new construction and increases in
property values of existing building stock. This growth continued in 2020 despite the COVID-19
pandemic and its ramifications.
Construction of the HERO Center facility was completed in late 2019 and opened to police, fire, and EMS
regional users in January 2020. This $19 million integrated public safety training facility is a joint venture
of the City of Cottage Grove and the City of Woodbury. Operations in 2020 were expected to be modest,
but due to the COVID -19 Pandemic, training operations were completely shuttered for better than six
months. Recovery of programming and training rentals to a variety of public safety entities is expected as
restrictions lift into 2021.
El
Letter of Transmittal
May 18, 2021
Local economy (Continued)
In January 2020, the city sold 3.2 acres which had housed City Hall and the Police Station from 1968 to
2012 to 80th and Hemmingway, LLC. Construction of the Grove 80 Apartments commenced shortly
thereafter. This 120 unit market rate apartment building includes underground and surface parking and
many of the amenities sought it today's marketplace. Completion of the project is expected with
occupancy in the fall of 2021
The City's 600-acre business park is home to 1,150,000 square feet of industrial and manufacturing
businesses, including Up North Plastics, Leafline Labs, American Logistics, Modern Automotive
Performance, Renewal by Andersen, North Star Sheets and Werner Electric. Other major employers in
the City include 3M Company, Target, Menard's, Walmart, and Aggregate Industries. The City's
commercial areas include four community shopping centers and several restaurants.
Up North Plastics, one of the original occupants of the business park, began construction of a 428,000
square foot addition to their building on land they owned in 2019. This manufacturer of plastic sheeting
had conducted a nationwide search for its expansion before deciding to more than double their capacity
at their current site. The project received a certificate of completion in January 2021.
Construction of AirGas $54 million air -separation plant on 8.5 acres in the business park continued
throughout 2020. The facility converts air into specialty gases (oxygen, nitrogen, and argon) for use by
manufacturing and medical users. Completion is expected in mid-2021.
Long-term financial planning
The City places a high priority on planning for future growth. Staff uses different long range revenue
and expenditure models during the annual preparation of a biennial budget plan for the General Fund,
Special Revenue and Enterprise Funds. The biennial budget process allows for the assurance that any
change to revenues or expenditures is sustainable in the successive year.
Furthermore, Council and staff compile a five-year Capital Improvement Plan (CIP) which addresses the
future building and infrastructure projects necessary to address the new residential and commercial
property outlined in the City's 2040 Comprehensive Plan.
As part of the CIP, each capital project is analyzed to determine if sufficient funding exists for the
project and the longer term impact of each of the projects on the individual capital fund balances.
Pavement Management projects are not full road reconstruction projects but rather a reclamation or mill
and overlay process to extend roadway life. Project funding for Pavement Management is covered by a
45% / 55% cost split: special assessments against benefiting properties with the balance of the costs
covered by general obligation debt to be repaid by annual tax levies.
In 2021, the $4 million Pavement Management project will include removal and replacement of street
surface with curb and gutter for two different neighborhoods, mill and overlay of another roadway,
upgrades to Arbor Meadows Park and reconstruction of the parking lot at River Oaks Golf Course.
5
Letter of Transmittal
May 18, 2021
Relevant Financial Policies
The City has financial policies and plans which establish the principles that guide staff and Council
members to make consistent and informed financial decisions. These policies and plans include:
• Fund balance policy
• Cash and investment management policy
• Debt management policy
• Capital improvements plan
• Infrastructure Maintenance Task Force (IMTF) policy
It is important for the financial stability of the City to maintain reserve funds for unanticipated
expenditures or unforeseen emergencies as well as providing adequate working capital for current
operations without short term borrowing. The City's fund balance policy identifies the unassigned fund
balance in the General Fund shall be no less than 55% of annual budgeted expenditures.
Major Initiatives
The population of Cottage Grove has increased from 833 in 1950 to 34,589 per the 2010 census. Most of
the population of the City concentrates in two age groups: 0 - 19 years (32.5%) and 30 - 50 years
(38.1%). According to the 2010 census, the average age is 35 years and the median family income is
$80,830. This median family income is 141% higher than the Twin Cities Metro Area.
Cottage Grove has evolved from a 1970's bedroom community to a steadily growing suburb with an
expanding commercial and industrial base. The 1990's and early 2000's saw a residential development
boom, with several years of building permits for single family homes exceeding 300 per year.
Residential development slowed significantly subsequent to the Great Recession of 2007. The real estate
slowdown affected more than five years of new home construction in the community. However, since
2015, the City has seen a consistent year over year increase in construction of single family and
multifamily homes. In 2020, 382 permits were issued for new construction of residential housing units.
Over 635 lots with completed infrastructure await construction at the end of 2020.
The "East Ravine Master Plan" was completed in 2006. After the delay, development of the 4,000 acres
of low density residential housing with park and open space amenities and nodes of commercial use
began in earnest in 2013. In the seven years since then, more than 1,000 acres of land has been
developed into a variety of residential housing. Ravine Parkway which serves as the transportation
backbone and connects these developments is now in Phase 3 of construction.
The City strategy of growth in the residential and commercial/industrial areas, providing more homes
and jobs, has begun to draw the additional retail storefronts and services the community demands.
Awards and Acknowledgements
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 Cottage Grove for its
Comprehensive Annual Financial Report for the year ended December 31, 2019. This was the thirtieth
consecutive year the City has achieved this prestigious award. In order to receive a Certificate of
Achievement, a government must publish an easily readable and efficiently organized Comprehensive
Annual Financial Report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
C
Letter of Transmittal
May 18, 2021
Awards and Acknowledgements (Continued)
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to GFOA to determine its eligibility for another certificate.
This report was compiled and completed by the dedicated staff of the Finance Department, especially
Cathy Mohr and Lauren Reichstadt-Nacar, to whom I give my heartiest thanks. I also wish to express
my appreciation to City Administrator Jennifer Levitt who has led the City Staff through all the
challenges of the last two years with a steady hand and generous heart. Lastly, thank you to the Mayor
and City Council members for their support in maintaining a fiscally sound and stable organization in
the service of our residents and business owners.
Respectfully Submitted,
CITY OF COTTAGE GROVE, MINNESOTA
Robin Roland
Finance Director
7
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Cottage Grove
Minnesota
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
Elected Officials
Myron Bailey
Steve Dennis
Justin Olsen
La Rae Mills
Dave Thiede
Appointed Personnel
Jennifer Levitt
Robin Roland
Joe Fischbach
Ben Boike
Ryan Burfeind
Peter Koerner
Zac Dockter
City of Cottage Grove
Elected Officials and Administration
December 31, 2020
Position Term Expires
Mayor December 31, 2024
Council Member December 31, 2022
Council Member December 31, 2024
Council Member December 31, 2024
Council Member December 31, 2022
City Administrator
Finance Director
City Clerk
Community and Economic Development Director
Public Works Director and City Engineer
Director of Public Safety
Parks and Recreation Director
E
City of Cottage Grove Organizational Chart
Cottage Grove
Citizens
City Council Advisory
Commissions
City
Administrator City Attorney
Community IParks and
Development I Recreation Administration
Parks/ City Clerk/
k� Planning Horticulture Elections
Finance
Accounting
Public Works I F--j Public Safety
Streets I IN Patrol
Building/Code
Human
Enterprise
Inspections
Recreation
Resources
Billing
Forestry
Investigations
Historic
i Communty
Fleet/Building
Public Safety
Ice Arena
Programs
Preservation
communications
it
Maintenance
Pgrams
Programs
River Oaks 01 Economic Utilities 0, Animal Contol
Development
Fire &
Engineering Emergency
Management
EMS/Medical
Services
Fire
Inspections
10
FINANCIAL SECTION
11
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Cottage
Grove
V,jcV.$Ptfity meet
12
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Cottage Grove
Cottage Grove, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the City of Cottage Grove, Minnesota, as of and for the year ended December 31,
2020, and the related notes to financial statements, which collectively comprise the City's basic financial
statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
The City of Cottage Grove's management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
BERGANKDV, LTD. I BERGANKDV.COM I DO MORE. 13
Opinions
In our opinion, the financial statements referred to in the first paragraph present fairly, in all material
respects, the respective financial position of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of
the City of Cottage Grove, Minnesota, as of December 31, 2020, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, which follows this report letter, and Required Supplementary Information as
listed in the Table of Contents be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We
have applied certain limited procedures to the Required Supplementary Information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Cottage Grove's basic financial statements. The introductory section,
combining and individual fund statements and schedules, supplementary financial information, and
statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The combining and individual fund statements and schedules and supplementary financial information
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the combining and individual fund statements
and schedules, and supplementary financial information are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
BERGANKDV, LTD. I BERGANKDV.COM I DO MORE. 14
Other Matters (Continued)
Other Information (Continued)
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Report on Summarized Comparative Information
The financial statements include partial prior year comparative information. Such information does not
include all of the information required to constitute a presentation in accordance with accounting
principles generally accepted in the United States of America. Accordingly, such information should be
read in conjunction with the City's basic financial statements for the year ended December 31, 2019,
from which such partial information was derived.
We have previously audited the City's 2019 financial statements and our report, dated May 15, 2020,
expressed unmodified opinions on the respective financial statements of the governmental activities, the
business -type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information. In our opinion, the summarized comparative information presented herein
as of and for the year ended December 31, 2019, is consistent, in all material respects, with the audited
financial statements from which it has been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 18, 2021,
on our consideration of the City of Cottage Grove's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the City of
Cottage Grove's internal control over financial reporting and compliance.
Minneapolis, Minnesota
May 18, 2021
BERGANKDV, LTD. I BERGANKDV.COM I DO MORE. 15
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Cottage
Grove
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16
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Cottage Grove, we offer readers of the City of Cottage Grove's financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended December 31, 2020. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages 3 through 7 of this report.
Financial Highlights
• The assets and deferred outflows of resources of the City of Cottage Grove and the EDA
Component Unit exceeded its liabilities and deferred inflows of resources at the close of the most
recent fiscal year by $320,452,154 (net position). Of this amount, $38,700,293 (unrestricted net
position) may be used to meet the government's ongoing obligations to citizens and creditors in
accordance with the City's fund designations and fiscal policies.
• The City's total net position increased by $33,391,847. The increase is due to reimbursements for
construction projects in the City.
• As of the close of the current fiscal year, the City of Cottage Grove's governmental funds
reported combined ending fund balances of $31,256,650 an increase of $1,792,530 compared to
the previous year. Approximately 84% or $26,197,644 is available for spending according to the
City's policies and constraints.
• At the end of the current fiscal year, unassigned fund balance for the General fund was
$10,479,728 (56%) of the total subsequent year General fund expenditures.
• At the end of the current fiscal year, the City of Cottage Grove had total long-term debt
outstanding of $41,041,364, a decrease of $2,534,963 or 5.8% compared to the previous year. In
2020, the City did not issue any new debt.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Cottage Grove'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 supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements. The government -wide financial statements are designed to
provide readers with a broad overview of the City of Cottage Grove's finances, in a manner similar to a
private -sector business.
The statement of net position presents information on all of the City of Cottage Grove'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 of Cottage Grove is improving or
deteriorating.
17
MANAGEMENT'S DISCUSSION AND ANALYSIS
Overview of the Financial Statements (Continued)
The statement of activities presents information on how the City's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to
the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.
uncollected taxes and earned but unused personal leave time).
Both of the government -wide financial statements distinguish functions of the City of Cottage Grove
that are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user fees
and charges (business -type activities). The governmental activities of the City of Cottage Grove include
general government, community development, economic development, public safety, public works, and
culture and recreation. The business -type activities of the City of Cottage Grove include street lighting,
water and sewer, and an ambulance service.
The government -wide financial statements include not only the City of Cottage Grove itself (known as
the primary government), but also a legally separate EDA component unit for which the City of Cottage
Grove is financially accountable. Financial information for this component unit is reported separately
from the financial information presented for the primary government itself.
The government -wide financial statements start on page 31 of this report.
Fund financial statements: A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City of Cottage
Grove, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements. All of the funds of the City of Cottage Grove 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
financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statement. By doing
so, readers may better understand the long-term impact of the City's near term financial decisions. Both
the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and
change in fund balance provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities.
MANAGEMENT'S DISCUSSION AND ANALYSIS
Overview of the Financial Statements (Continued)
Governmental funds: Information is presented separately in the governmental fund balance sheet and in
the governmental fund statement of revenues, expenditures, and changes in fund balance for the City's
seven individual major governmental funds. They are as follows:
• General Fund
• Municipal Building Capital Project Fund — Capital project fund
• MSA Construction Capital Project Fund —Capital project fund
• Closed Debt Fund —Debt service fund
• Future Projects Fund - Capital project fund
• Developer Petitioned Projects Fund — Capital project fund
• Water Connection and Area Fund — Capital project fund
Data from the other governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these non -major governmental funds is provided in the form of combining
statements elsewhere in the report.
The City of Cottage Grove adopts an annual appropriated budget for its general and special revenue
funds. A budgetary comparison statement has been provided for those funds to demonstrate compliance
with this budget.
The basic governmental fund financial statements start on page 34 of this report.
Proprietary funds: The City of Cottage Grove maintains four enterprise funds and three internal
service funds as a part of its proprietary fund type. Enterprise funds are used to report the same
functions presented as business -type activities in the governmental -wide financial statements. The City
of Cottage Grove uses enterprise funds to account for street light operations, ambulance service, water
operations, and sewer operations. Internal service funds are an accounting device used to accumulate
and allocate costs internally among the City of Cottage Grove's various functions. The City of Cottage
Grove uses internal service funds to account for self-insurance, fleet maintenance, and information
technology services activity. Because these services predominantly benefit governmental rather than
business -type functions, they have been included within governmental activities in the government -wide
financial statements.
Proprietary funds provide the same type of information as the government -wide financial statements,
only in more detail. The proprietary fund financial statements provide separate information for street
light operations, ambulance service, water operations, and sewer operations, all of which are major
funds of the City of Cottage Grove. Conversely, the 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.
The basic proprietary fund financial statements start on page 41 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 45 of this report.
19
MANAGEMENT'S DISCUSSION AND ANALYSIS
Overview of the Financial Statements (Continued)
Other information: The combining statements referred to earlier in connection with non -major
governmental funds and internal service funds are presented immediately following the required
supplementary information. Combining and individual fund statements and schedules start on page 101
of this report.
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City of Cottage Grove, assets exceeded liabilities by $320,576,209 at the
close of the most recent fiscal year.
The largest portion of the City of Cottage Grove's net position ($273,791,944 or 85%) reflects its
investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used
to acquire those assets that is still outstanding. The City of Cottage Grove uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending. Although
the City of Cottage Grove'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.
City of Cottage Grove Net Position
Governmental Activities Business -type Activities Total Primary Government
2020 2019 2020 2019 2020 2019
Current and other assets $45,740,424 $51,208,180 $15,961,687 $14,922,460 $61,702,111 $66,130,640
Capital assets 239,424,423 217,747,574 75,408,885 70,373,534 314,833,308 288,121,108
Total assets 291,164,847 268,955,754 91,370,572 85,295,994 382,535,419 354,251,748
Deferred outflows of
resources
Long-term liabilities
outstanding
Pension liability
Other liabilities
Total liabilities
Deferred inflows of
resources
3,433,239 4,778,293
38,590,666
42,576,327
10,396,962
8,714,390
10,086,785
11,068,757
59,074,413
62,359,474
4,052,946 7,306,480
508,175 725,043 3,941,414 5,503,336
76,209
84,990
1,514,935
1,240,444
628,680
519,967
2,219,824
1,845,401
553,441 1,059,367
38,666,875
42,661,317
11,911,897
9,954,834
10,715,465
11,588,724
61,294,237
64,204,875
4,606,387 8,365,847
Net position:
Net investment in capital
assets 198,383,059 174,171,247 75,408,885 70,373,534 273,791,944 244,544,781
Restricted 7,959,917 8,500,720 - - 7,959,917 8,500,720
Unrestricted 25,127,751 21,396,126 13,696,597 12,742,735 38,824,348 34,138,861
Total net position $231,470,727 $204,068,093 $89,105,482 $83,116,269 $320,576,209 $287,184,362
An additional portion of the City's net position ($7,959,917 or 2.5%) represents resources that are subject
to external restrictions on how they may be used. The balance of unrestricted net position, $38,824,348
may be used to meet the City's ongoing obligations to citizens and creditors.
20
MANAGEMENT'S DISCUSSION AND ANALYSIS
Government -wide Financial Analysis (Continued)
At the end of the current fiscal year, the City of Cottage Grove is able to report positive balances in all
three categories of net position; for the government as a whole, as well as for its separate governmental
and business -type activities. The same situation held true for the prior fiscal year.
Governmental Activities: Governmental activities increased the City's net position by $27,402,634 in
2020.
Program revenue increased overall by $3,732,692, due to operating grants and contributions
from the state for construction of the HERO Center and infrastructure construction projects.
Property tax revenues increased by $1,272,757 to keep pace with increased operational costs.
Investment income decreased by $481,719 due to the sharp decline in interest rates beginning in
March 2020 due to the Federal Reserve actions to counteract the economic impact of the
COVID-19 pandemic.
Operating 1
Contribt
270,
Revenues by Source - Government Activities
Capital Grants &
rnntrihutinnc Other taxes & tax
12%
ricted
ment
ings
Other
0%
axes
21
MANAGEMENT'S DISCUSSION AND ANALYSIS
Governmental Activities (Continued)
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Othertaxes
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of asset
Total revenues
Expenses:
General government
Community development
Economic development
Public safety
Public works
Culture and recreation
Interest on long-term debt
Street lights
Cottage Grove EMS
Water operating
Sewer operating
Total expenses
Increase (decrease) in net position before
transfers and special items
Transfers
Increase (decrease) in net position
Net position - beginning
Net position - ending
Governmental Activities
2020
2019
City of Cottage Grove's Changes in Net Position
Business -Type Activities Total Primary Government
$7,681,171
$9,803,605
$8,928,778
$8,494,677
$16,609,949
$18,298,282
17,726,027
2,231,407
101,196
23,409
17,827,223
2,254,816
20,144,097
29,783,591
3,842,839
2,700,615
23,986,936
32,484,206
16,881,359
15,608,602
-
-
16,881,359
15,608,602
1,940,895
1,691,323
1,940,895
1,691,323
181,316
113,435
-
-
181,316
113,435
582,781
982,812
179,837
261,525
762,618
1,244,337
34,579
49,186
-
34,579
49,186
65,172,225
60,263,961
13,052,650
11,480,226
78,224,875
71,764,187
5,621,197
2,704,159
-
-
5,621,197
2,704,159
1,750,768
1,524,566
1,750,768
1,524,566
583,767
492,107
583,767
492,107
6,947,733
9,272,317
6,947,733
9,272,317
13,650,476
10,062,896
13,650,476
10,062,896
5,638,642
5,566,175
5,638,642
5,566,175
1,141,147
1,286,632
-
-
1,141,147
1,286,632
-
-
1,152,326
1,073,480
1,152,326
1,073,480
1,843,840
1,750,771
1,843,840
1,750,771
3,039,639
2,904,174
3,039,639
2,904,174
-
-
3,463,493
3,139,150
3,463,493
3,139,150
35,333,730
30,908,852
9,499,298
8,867,575
44,833,028
39,776,427
29,838,495
29,355,109
3,553,352
2,612,651
33,391,847
31,967,760
(2,435,861)
(4,973,641)
2,435,861
4,973,641
27,402,634
24,381,468
5,989,213
7,586,292
33,391,847
31,967,760
204,068,093
179,686,625
83,116,269
75,529,977
287,184,362
255,216,602
$231,470,727
$204,068,093
$89,105,482
$83,116,269
$320,576,209
$287,184,362
The following chart illustrates the City's expenses and corresponding program revenues for its
governmental activities.
22
MANAGEMENT'S DISCUSSION AND ANALYSIS
Governmental Activities (Continued)
35000000
30000000
25000000
20000000
15000000
10000000
5000000
0 .1
■�
�� ■
general
community
economic public safety public works
culture & interest on debt
government
development
development
recreation
■ revenue ■ expense
Business -Type Activities. Business -type activities increased net position by $5,989,213. Below are
graphs showing the business -type activities revenue and expense comparisons.
Revenues - Business type Activities
Capital grants &
Operatin
grants &
contributic
1%
Unrestricted
lent
Igs
Charges for
services
68
23
MANAGEMENT'S DISCUSSION AND ANALYSIS
Governmental Activities (Continued)
7000000
6000000
5000000
4000000
3000000
2000000
1000000
n in
Street Lights
Cottage Grove EMS Water operating
■ revenues ■ expenses
Sewer operating
In business type activities, changes in net position were positive for Streetlights, Water and Sewer
Utilities. The Cottage Grove EMS fund had a negative change in net position due to a budgeted transfer
to the General fund.
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City of Cottage Grove's governmental funds is to provide
information on near -term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City of Cottage Grove's financing requirements. In particular, unassigned fund
balance may serve as a useful measure of a government's net resources available for spending at the end
of the fiscal year.
At the end of the current fiscal year, the City of Cottage Grove's governmental funds reported combined
ending fund balances of $31,256,650 an increase of $1,792,530. Committed, assigned and unassigned
fund balance which is available for spending at the government's discretion has a balance of
$26,197,644 at year end. The remainder of the fund balance is non -spendable or restricted to indicate it
is not available for new spending because it has already been obligated.
The General fund is the chief operating fund of the City of Cottage Grove. At the end of the current
fiscal year, unassigned fund balance of the General fund was $10,479,728 while total fund balance was
$12,275,376. As a measure of the general fund's liquidity, it may be useful to compare both unassigned
fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 55%
of total subsequent year General fund expenditures, while total fund balance represents 64.5% of the
same amount.
24
MANAGEMENT'S DISCUSSION AND ANALYSIS
Financial Analysis of the Government's Funds (Continued)
Governmental Funds. (Continued) The General fund balance increased by $583,998. Revenues
exceeded budget by $525,129 due to higher -than -expected intergovernmental revenue and charges for
services from development and infrastructure projects. Expenditures were $409,408 over budget due to
increased payroll costs from public safety response to civil unrest and unbudgeted pass -through of state
fire aid to the fire relief pension fund managed by PERA (Public Employee Retirement Association).
The Closed Debt Fund increased by $586,495 due to transfers from the General Fund in accordance with
the City's Fund Balance Policy, setting aside resources for future debt service payments.
The Municipal Building Fund decreased by $257,033 due to costs of an expansion of the kitchen at the
River Oaks Clubhouse, which was undertaken to provide additional space for workers in accordance with
COVID-19 physical distancing requirements.
The MSA Construction Fund decreased by $1,896,714 due to construction project costs related to the 80th
Street (from Jamaica to Keats) reconstruction project. These costs were funded by an advance of future
MSA allotments from the Minnesota Department of Transportation
The Future Projects Fund decreased $671,078 due to close out/completion of the HERO Center project.
The Water Connection and Area Fund increased by $572,039 due to area charges collected from the
development of ten new residential plats in 2020. This fund saw significant activity from the PCA/3M
settlement funding of interim water treatment facilities in the City.
The Developer Petitioned Projects Fund increased by $153,309 due to collection of levied special
assessments for Summers Landing phases one, two and three net of the construction costs for Summers
Landing phase four development. Special Assessments were levied for phase four infrastructure costs,
which will be collected over the next three years.
Proprietary funds: The City of Cottage Grove's proprietary funds provide the same type of information
found in the government -wide financial statements, but in more detail.
Business -type activities increased the City's net position by $6,119,884 in 2020 due to increased water
and sewer rates and capital contributions from completed infrastructure projects in new residential
developments.
Budtetary Hi2hli2hts
General Fund.
The General Fund actual results were different than the final budget amounts due to the following:
• Licenses and Permits categories were $208,607 less than final budget due to the delay of an
anticipated project until after the beginning of 2021.
• Intergovernmental revenues were $213,020 more than budget due to recognition of fire relief state
aid which was not included in 2020 budgeted revenues or expenditures.
25
MANAGEMENT'S DISCUSSION AND ANALYSIS
Budtetary Hii!hlii!hts (Continued)
General Fund. (Continued)
• Charges for services were $403,332 more than budgeted due to engineering fees resulting from
increased construction and development activity.
• General government expenditures were $17,255 less than budgeted amounts due to a shift in
staffing costs to community development.
• Community development expenditures were $140,810 more than budgeted amounts due to a
shift in staffing costs from general government and overtime costs related to development
projects.
• Public safety expenditures were $525,131 more than budgeted amounts due to staffing costs for
mutual aid during civil unrest in the Minneapolis/St. Paul metropolitan area and the recognition
of fire state aid transferred to the Statewide Volunteer Firefighter Retirement Plan administered
by the Public Employees Retirement Association of Minnesota.
• Public works expenditures were $78,322 less than budget due to a mild winter and reduced snow
and ice removal as well as reduced asphalt costs due to the drop in oil prices brought on during
the COVID-19 pandemic.
• Culture and recreation expenditures were $160,956 less than final budget due to the total
shutdown of recreational programming during the COVID-19 pandemic.
Capital Asset and Debt Administration
Capital assets: The City of Cottage Grove's investment in capital assets for its governmental and
business -type activities as of December 31, 2020, amounts to $314,833,308 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, infrastructure, machinery and
equipment.
Land and land improvements
Easements
Construction in progress
Buildings and improvements
Equipment and furniture
Machinery and equipment
Other improvements
Infrastructure:
Streets
Storm sewers
Sidewalks/trails
Water and sewer lines
Ending balance
City of Cottage Grove's Capital Assets
(Net of
Depreciation)
Governmental Activities
Business -type
Activities
Total Primary
Government
2020
2019
2020
2019
2020
2019
$18,105,944
$18,105,944
$505,665
$506,460
$18,611,609
$18,612,404
1,157,202
1,157,202
-
-
1,157,202
1,157,202
12,756,257
20,352,945
-
-
12,756,257
20,352,945
47,890,594
29,534,649
4,467,002
3,379,814
52,357,596
32,914,463
265,411
100,931
-
-
265,411
100,931
6,653,274
5,789,346
830,901
814,416
7,484,175
6,603,762
4,646,135
4,514,658
6,487,714
6,079,311
11,338,849
10,593,969
110,044,332
103,753,684
-
-
110,044,332
103,753,684
32,360,290
29,545,603
-
-
32,360,290
29,545,603
5,544,984
4,892,612
-
-
5,544,984
4,892,612
-
-
63,117,603
59,593,533
63,117,603
59,593,533
$239,424,423
$217,747,574
$75,408,885
$70,373,534
$314,833,308
$288,121,108
MANAGEMENT'S DISCUSSION AND ANALYSIS
Capital Asset and Debt Administration
Capital assets: (Continued) The largest addition to capital assets in 2020 was the HERO Center building,
followed closely by streets and infrastructure additions from the 80th Street and West Point Douglas road
projects, Bailey Woods, Highpointe, Langdon Hills, Ravine Meadows, Summers Landing 41h, Woodward
Ponds and Young Addition residential housing developments.
Additional information on the City of Cottage Grove's capital assets can be found in Note 3.
Long-term debt: At the end of the current fiscal year, the City of Cottage Grove had total long-term
debt outstanding of $42,261,721 a decrease of $2,406,691. $3,964,447 of the debt outstanding is due
within one year. $21,230,000 of bonds payable is for pavement management debt being repaid by a
combination of special assessments and property tax levies.
City of Cottage Grove's Outstanding Debt
Governmental activities:
Bonds payable, net
Compensated absences
Total governmental activities
Business -type activities:
Compensated absences
Total business -type activities
Total primary government
2020
2019
$41,041,364 $43,576,327
1,073,065 982,917
42,114,429 44,559,244
147,292 109,168
147,292 109,168
$42,261,721 $44,668,412
The City of Cottage Grove holds a general obligation debt rating of Aal from Moody's (2010 Global
Ratings Scale) and of AA+/Stable from Standard and Poor's. According to S&P, Cottage Grove has "a
strong financial profile, anchored by a very strong general fund balance; and good management
practices that have contributed to the city's ongoing financial health."
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total
Estimated Market Value. The current debt limitation for the City of Cottage Grove is $126,180,882.
Of that limit, $11,005,000 of the City's outstanding debt is counted within the statutory limitation
because all other debt is either wholly or partially repaid by revenues other than general property tax
levies.
Additional information on the City of Cottage Grove's long-term debt can be found in Note 4.
Requests for information: This financial report is designed to provide a general overview of the City
of Cottage Grove's finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional financial information
should be addressed to Finance Director, 12800 Ravine Parkway St, Cottage Grove, Minnesota 55016.
27
Cottage
Grove
%ere Pcldp- V6
BASIC FINANCIAL STATEMENTS
29
%ere Pcldp- V6
Cottage
Grove
V,jcV.$Ptfity meet
30
City of Cottage Grove
Statement of Net Position
December 31, 2020
With Comparative Totals for December 31, 2019
Component
Unit
Primary Government
Economic
Totals
Governmental
Business -Type
Total Primary
Development
Reporting Entitiy
Activities
Activities
Government
Authority
2020
2019
Assets
Cash and investments (including
cash equivalents)
$ 40,055,821
$ 10,544,992
$ 50,600,813
$
$ 50,600,813
$ 46,848,703
Interest receivable
201,147
-
201,147
201,147
134,166
Due from other governments
2,121,972
69,566
2,191,538
2,191,538
3,400,301
Accounts receivable
476,191
2,422,623
2,898,814
12,685
2,911,499
2,955,867
Prepaid items
482,973
170,772
653,745
1,275
655,020
510,707
Property tax receivable
123,629
-
123,629
956
124,585
131,188
Loan receivable
-
-
73,299
73,299
99,741
Special assessments receivable
8,300,947
8,300,947
-
8,300,947
10,069,089
Inventories
149,408
149,408
149,408
121,200
Internal balances
(2,753,734)
2,753,734
-
-
-
-
Property held for resale
592,231
-
592,231
311,718
903,949
903,949
Fire relief pension asset
1,989,839
-
1,989,839
-
1,989,839
1,372,815
Capital assets not being depreciated
Land
18,105,944
479,785
18,585,729
18,585,729
18,585,729
Easements
1,157,202
-
1,157,202
1,157,202
1,157,202
Construction in progress
12,756,257
-
12,756,257
12,756,257
20,352,945
Capital assets net of accumulated depreciation
Land improvements
-
25,880
25,880
25,880
26,675
Buildings and improvements
47,890,594
4,467,002
52,357,596
52,357,596
32,914,463
Equipment and furniture
265,411
-
265,411
265,411
100,931
Machinery and equipment
6,653,274
830,901
7,484,175
7,484,175
6,603,762
Other improvements
4,646,135
6,487,714
11,133,849
11,133,849
10,593,969
Infrastructure
147,949,606
63,117,603
211,067,209
211,067,209
197,785,432
Total assets
291,164,847
91,370,572
382,535,419
399,933
382,935,352
354,668,834
Deferred Outflows of Resources
Deferred outflows of resources related to OPEB
40,620
5,845
46,465
617
47,082
39,435
Deferred outflows of resources related to pensions
3,392,619
502,330
3,894,949
15,853
3,910,802
5,477,971
Total deferred outflows of resources
3,433,239
508,175
3,941,414
16,470
3,957,884
5,517,406
Total assets and deferred outflows ofresources
$ 294,598,086
$ 91,878,747
$ 386,476,833 $
416,403
$ 386,893,236
$ 360,186,240
Liabilities
Accounts payable
$ 1,892,513
$ 127,920
$ 2,020,433 $
14,918
$ 2,035,351
$ 4,101,958
Salaries and benefits payable
541,123
127,743
668,866
5,376
674,242
1,189,901
Contracts payable
544,078
-
544,078
-
544,078
909,377
Due to other governments
59,111
191,434
250,545
366,017
616,562
243,639
Deposits payable
2,685,413
64,000
2,749,413
-
2,749,413
2,312,736
Unearned revenue
30,305
-
30,305
30,305
48,508
Interest payable
487,378
487,378
487,378
598,897
Bonds payable, net of unamortized premium
Due within one year
3,025,000
3,025,000
3,025,000
2,435,000
Due in more than one year
38,016,364
38,016,364
38,016,364
41,141,327
Compensated absences payable
Due within one year
821,864
117,583
939,447
10,145
949,592
798,015
Due in more than one year
251,201
29,709
280,910
-
280,910
302,775
Net pension liability
Due in more than one year
10,396,962
1,514,935
11,911,897
132,769
12,044,666
10,076,638
Total OPEB liability
Due in more than one year
323,101
46,500
369,601
4,904
374,505
368,440
Total liabilities
59,074,413
2,219,824
61,294,237
534,129
61,828,366
64,527,211
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
4,032,734
550,532
4,583,266
6,022
4,589,288
8,368,134
Deferred inflows of resources related to OPEB
20,212
2,909
23,121
307
23,428
20,826
Total deferred inflows of resources
4,052,946
553,441
4,606,387
6,329
4,612,716
8,388,960
Net Position
Net Investment in capital assets
198,383,059
75,408,885
273,791,944
- 273,791,944
244,544,781
Restricted for
Forfeiture and seizure
89,411
-
89,411
89,411
75,106
Pandemic relief
1,500
1,500
1,500
-
Debt retirement
6,786,378
6,786,378
6,786,378
7,854,584
Tax increment purposes
1,082,628
1,082,628
1,082,628
571,030
Economic development
-
-
-
85,707
Unrestricted
25,127,751
13,696,597
38,824,348
(124,055) 38,700,293
34,138,861
Total net position
231,470,727
89,105,482
320,576,209
(124,055) 320,452,154
287,270,069
Total liabilities, deferred inflows of resources,
and net position $
294,598,086
$ 91,878,747
$ 386,476,833
$ 416,403 $ 386,893,236
$ 360,186,240
The notes to financial statements are an integral part of this statement.
31
City of Cottage Grove
Statement of Activities
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Functions/Programs
Primary Government
Governmental activities
General government
Community development
Public safety
Economic Development
Public works
Culture and recreation
Interest and fiscal charges on long-term debt
Total governmental activities
Business -type activities
Street lights
Cottage Grove EMS
Water operating
Sewer operating
Total business -type activities
Total primary government
Component unit
Economic Development Authority
Program Revenues
Operating
Capital Grants
Charges for
Grants and
and
Expenses
Services
Contributions
Contributions
$ 5,621,197
$ 193,964
$ 2,892,699
$ -
1,750,768
2,648,715
16,000
-
6,947,733
764,732
652,649
1,496,731
583,767
400,210
361,818
-
13,650,476
1,095,238
13,306, 832
17,307, 706
5,638,642
2,578,312
496,029
1,339,660
1,141,147
-
-
-
35,333,730
7,681,171
17,726,027
20,144,097
1,152,326
962,958
-
425,237
1,843,840
1,772,704
39,347
-
3,039,639
3,002,920
61,849
2,661,426
3,463,493
3,190,196
-
756,176
9,499,298
8,928,778
101,196
3,842,839
$ 44,833,028
$ 16,609,949
$ 17,827,223
$ 23,986,936
$ 463,981
$ 105,563
$ 14,978
$ -
General revenues
Property taxes
Franchise taxes
Aggregate taxes
Tax increment collections
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on sale of asset
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
The notes to the financial statements are an integral part of this statement. 32
Component
Net (Expense) Revenues and Changes in Net Position
Unit
Primary Government
Economic
Governmental
Business -Type
Development
Activities
Activities
2020
2019
Authority
$ (2,534,534)
$ -
$ (2,534,534)
$ (2,427,325)
$ -
913,947
-
913,947
899,464
-
(4,033,621)
-
(4,033,621)
4,719,225
-
178,261
-
178,261
420,628
-
18,059,300
-
18,059,300
9,931,162
-
(1,224,641)
-
(1,224,641)
(1,346,771)
-
(1,141,147)
-
(1,141,147)
(1,286,632)
-
10,217,565
-
10,217,565
10,909,751
-
-
235,869
235,869
(1,728)
-
-
(31,789)
(31,789)
315,962
-
-
2,686,556
2,686,556
890,779
-
-
482,879
482,879
1,146,113
-
-
3,373,515
3,373,515
2,351,126
-
10,217,565
3,373,515
13,591,080
13,260,877
-
(343,440)
16,881,359
-
16,881,359
15,608,602
125,230
596,537
-
596,537
583,715
-
22,699
-
22,699
22,250
-
1,321,659
-
1,321,659
1,085,358
-
181,316
-
181,316
113,435
-
582,781
179,837
762,618
1,244,337
8,448
34,579
-
34,579
49,186
-
(2,435,861)
2,435,861
-
-
-
17,185,069
2,615,698
19,800,767
18,706,883
133,678
27,402,634
5,989,213
33,391,847
31,967,760
(209,762)
204,068,093
83,116,269
287,184,362
255,216,602
85,707
$ 231,470,727
$ 89,105,482
$ 320,576,209
$ 287,184,362
$ (124,055)
33
City of Cottage Grove
Balance Sheet - Governmental Funds
December 31, 2020
With Comparative Totals for December 31, 2019
Debt Service Capital Projects
Municipal
MSA
General Fund
Closed Debt
Building
Fund
Construction
(100)
Fund (300)
(525)
(520)
Assets
Cash and investments
$
12,150,868
$ 1,396,407
$
-
$ -
Interest receivable
201,147
-
-
-
Interfund receivable
-
1,282,215
-
-
Interfund loan receivable
-
-
-
-
Due from other governments
549,853
-
-
320,909
Accounts receivable
60,244
-
39
-
Prepaid items
27,042
-
-
-
Inventories
-
-
-
-
Taxes receivable - delinquent
103,730
573
2,433
-
Special assessments receivable
Deferred
3,637
171,734
-
424,479
Delinquent
1,361
4,917
-
64
Special deferred
-
5,605
-
-
Property held for resale
-
-
-
267,498
Total assets
$
13,097,882
$ 2,861,451
$
2,472
$ 1,012,950
Liabilities
Accounts payable
$
186,979
$ -
$
-
$ 46,570
Salaries and benefits payable
449,228
-
-
-
Interfund payable
-
-
33,346
1,248,869
Contracts payable
-
-
13,679
35,156
Due to other governments
48,371
-
-
874
Deposits payable
500
-
2,000
-
Unearned revenue
28,700
-
1,605
-
Interfund loan payable
-
-
2,860,000
-
Total liabilities
713,778
-
2,910,630
1,331,469
Deferred Inflows of Resources
Unavailable revenue - tax increment
-
-
-
-
Unavailable revenue - property taxes
103,730
573
2,433
-
Unavailable revenue - special assessments
4,998
182,256
-
424,543
Unavailable revenue - intergovernmental
-
-
-
2,795,762
Total deferred inflows of resources
108,728
182,829
2,433
3,220,305
Fund Balances
Nonspendable
27,042
-
-
-
Restricted
-
-
-
-
Committed
-
-
-
-
Assigned
1,768,606
2,678,622
-
-
Unassigned
10,479,728
-
(2,910,591)
(3,538,824)
Total fund balances
12,275,376
2,678,622
(2,910,591)
(3,538,824)
Total liabilities, deferred inflows of
resources, and fund balances
$
13,097,882
$ 2,861,451
$
2,472
$ 1,012,950
The notes to the financial statements are an integral part of this statement. 34
Capital Projects
Totals
Water
Connection
Developer
Nonmajor
Future Projects
and Area
Petitioned
Governmental
(510, 810)
(575)
Projects (568)
Funds
2020
2019
$
1,340,944
$ 1,238,724
$ -
$ 22,611,656
$
38,738,599
$
35,677,627
-
-
-
-
201,147
134,166
2,223,771
-
-
839,128
4,345,114
4,492,356
-
-
-
661,279
661,279
759,864
36,940
1,015,351
-
198,919
2,121,972
3,376,693
21,280
-
-
381,714
463,277
593,575
-
-
-
33,818
60,860
48,652
-
-
-
28,265
28,265
25,601
23
-
-
16,870
123,629
130,157
-
-
3,939,590
2,482,219
7,021,659
7,488,665
-
-
11,798
3,392
21,532
85,800
4,940
-
-
1,247,211
1,257,756
2,494,624
-
-
-
324,733
592,231
592,231
$
3,627,898
$ 2,254,075
$ 3,951,388
$ 28,829,204
$
55,637,320
$
55,900,011
$
355,523
$ 564,750
$ 43,387
$ 302,101
$
1,499,310
$
3,540,259
-
-
-
34,258
483,486
882,281
-
-
2,223,771
839,128
4,345,114
4,492,356
49,155
227,491
173,286
45,311
544,078
909,377
392
-
-
1,710
51,347
55,089
2,604,849
-
23,565
54,499
2,685,413
2,302,736
-
-
-
-
30,305
48,508
-
-
-
661,279
3,521,279
3,829,864
3,009,919
792,241
2,464,009
1,938,286
13,160,332
16,060,470
-
-
-
5,144
5,144
2,802
23
-
-
11,726
118,485
127,355
4,940
-
3,951,388
3,732,822
8,300,947
10,069,089
-
-
-
-
2,795,762
176,175
4,963
-
3,951,388
3,749,692
11,220,338
10,375,421
-
-
-
62,083
89,125
74,253
-
-
-
4,969,881
4,969,881
3,876,020
-
-
-
2,136,969
2,136,969
1,736,590
613,016
1,461,834
-
16,702,104
23,224,182
21,016,407
-
-
(2,464,009)
(729,811)
836,493
2,760,850
613,016
1,461,834
(2,464,009)
23,141,226
31,256,650
29,464,120
$
3,627,898
$ 2,254,075
$ 3,951,388
$ 28,829,204
$
55,637,320
$
55,900,011
35
%ere Pcldp- V6
Cottage
Grove
V,jcV.$Ptfity meet
36
City of Cottage Grove
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2020
With Comparative Totals for December 31, 2019
2020 2019
Total Fund Balances - Governmental Funds $ 31,256,650 $ 29,464,120
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not current financial
resources and, therefore, are not reported as assets in governmental fonds.
Cost of capital assets 312,766,986 284,972,162
Less accumulated depreciation (74,327,816) (68,249,071)
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of:
Bond principal payable
(40,005,000)
(42,440,000)
Unamortized bond premium
(1,036,364)
(1,136,327)
Net pension liability
(9,851,290)
(8,331,746)
Compensated absences payable
(999,562)
(927,071)
Total OPEB liability
(301,090)
(301,284)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes
124,283
130,157
Special assessments
8,300,293
10,069,089
Deferred intergovernmental grants receivable
2,795,762
176,175
Deferred outflows of resources and deferred inflows of resources are created
as a result of various differences related to pensions that are not recognized
in the governmental funds.
Deferred inflows of resources related to fire relief pensions
(336,673)
(309,852)
Deferred inflows of resources related to city pensions
(3,671,312)
(6,907,000)
Deferred inflows of resources related to OPEB
(18,835)
(17,030)
Deferred outflows of resources related to city pensions
3,327,465
4,701,864
Deferred outflows of resources related to OPEB
37,852
32,247
The Fire Relief Association net pension asset created through contributions
to a defined benefit pension plan which is not recognized in the
governmental funds.
1,989,839
1,372,815
Governmental funds do not report a liability for accrued interest due and
payable.
(487,378)
(598,897)
Internal service funds are used by management to charge the cost of insurance
to individual funds. The assets and liabilities are included in the governmental
activities Statement of Net Position 1,906,917 2,367,742
Total net position - governmental activities $231,470,727 $204,068,093
The notes to financial statements are an integral part of this statement. 37
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenue
General property taxes
Franchise taxes
Aggregate taxes
Tax increment collections
Special assessments
Licenses and permits
Direct charges to developers
Intergovernmental
Charges for services
Rent
Fines and forfeitures
Investment earnings
Interest on interfund loan
Connection charges
Park dedication fees
Donations
Miscellaneous
Total revenues
Expenditures
Current
General government
Community development
Public safety
Public works
Culture and recreation
Economic development
Capital outlay
General government
Public safety
Public works
Culture and recreation
Debt service
Principal retirement
Interest and other charges
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Proceeds from sale of capital asset
Bond issuance
Bond premium
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances
Beginning of year
End of year
Debt Service Capital Projects
Municipal MSA
General Fund Closed Debt Building Fund Construction
(100) Fund (300) (525) (520)
$ 14,236,904 $
431
$ 251,003
$
4,412
81,554
340,129
2,480,933
-
-
1,108,220
-
1,998,672
1,243,787
-
-
-
-
-
55,758
119,092
-
-
148,175
33,013
6,841
30,745
-
-
141,766
-
200
168,982
19,514,034
114,998
313,802
2,507,783
2,455,338 1,253 30,156
1,753,836 - -
7,686,732 - -
2,847,790 - 19,563
2,004,265 - -
170,629 - -
- - - 5,086,808
- - 713,636 -
- - 29,650 -
16,918,590 1,253 773,442 5,106,371
2,595,444 113,745 (459,640) (2,598,588)
563,050 472,750 202,607 701,874
(2,574,496) - - -
(2,011,446) 472,750 202,607 701,874
583,998 586,495 (257,033) (1,896,714)
11,691,378 2,092,127 (2,653,558) (1,642,110)
$ 12,275,376 $ 2,678,622 $ (2,910,591) $ (3,538,824)
The notes to financial statements are an integral part of this statement. 38
Capital Projects
Totals
Water
Developer
Nonmajor
Future Projects
Connection and
Petitioned
Govermuental
(510, 810)
Area (575)
Projects (568)
Funds
2020
1900
$ 18
$
$ -
$ 2,398,877
$ 16,887,233 $
15,631,133
-
-
596,537
596,537
583,715
-
22,699
22,699
22,250
-
-
1,321,659
1,321,659
1,085,358
33,360
38,399
4,075,843
1,512,209
6,085,906
4,282,185
-
-
-
-
2,480,933
2,277,642
362,945
-
-
81,962
444,907
299,683
1,487,782
12,746,601
13,019
3,280,842
20,635,136
17,716,725
-
-
-
3,818,718
5,062,505
4,988,080
-
436,448
492,206
474,994
-
-
-
22,288
141,380
220,024
23,493
15,032
-
300,755
527,309
924,396
-
-
-
21,895
21,895
23,903
-
986,326
-
1,577,096
2,563,422
1,932,844
-
-
1,110,209
1,110,209
472,500
-
-
361,818
392,563
373,453
8,949
-
-
438,761
758,658
1,497,091
1,916,547
13,786,358
4,088,862
17,302,773
59,545,157
52,805,976
-
-
-
2,635,665
5,122,412
2,488,722
-
-
1,753,836
1,486,081
4,081
-
-
495,442
8,186,255
8,535,996
52,464
1,180,505
400,388
1,756,642
6,257,352
4,769,732
95,365
-
-
2,546,799
4,646,429
5,013,805
-
539,092
539,092
447,061
-
-
305,358
305,358
-
437,762
-
-
11,210
619,601
15,482,899
2,341,224
12,033,814
3,535,165
2,138,476
25,135,487
15,726,666
16,000
-
-
1,510,753
2,240,389
3,576,572
-
-
2,435,000
2,435,000
2,420,000
-
-
1,322,979
1,352,629
1,253,185
2,946,896
13,214,319
3,935,553
15,697,416
58,593,840
61,200,719
(1,030,349)
572,039
153,309
1,605,357
951,317
(8,394,743)
-
-
13,771
13,771
35,932
-
-
-
6,935,000
-
-
-
-
239,309
359,271
-
2,795,009
5,094,561
5,308,513
-
(1,692,623)
(4,267,119)
(4,486,763)
359,271
-
1,116,157
841,213
8,031,991
(671,078)
572,039
153,309
2,721,514
1,792,530
(362,752)
1,284,094
889,795
(2,617,318)
20,419,712
29,464,120
29,826,872
$ 613,016
$ 1,461,834
$ (2,464,009)
$ 23,141,226
$ 31,256,650 $
29,464,120
39
City of Cottage Grove
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
the Statement of Activities - Governmental Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
2020 2019
Total net change in fund balances - governmental funds $ 1,792,530 $ (362,752)
Amounts reported for governmental activities in the Statement of Activities are different
because:
Capital outlays are reported in governmental funds as expenditures. However,
in the Statement of Activities, the cost of those assets is allocated over the
estimated useful lives as depreciation expense.
Capital outlays
26,884,397
34,051,897
Developer contributed assets
4,632,858
4,245,294
Depreciation expense
(6,409,582)
(5,710,679)
Loss on disposal
(128,291)
(160,186)
Assets contributed to business -type activities
(3,263,303)
(5,795,391)
Compensated absences are recognized as paid in the governmental funds but
recognized as the expense is incurred in the Statement of Activities.
(72,491)
(49,356)
OPEB expenses are recognized as paid in the governmental funds but recognized
as the expense is incurred in the Statement of Activities.
3,994
(1,698)
Principal payments on long-term debt are recognized as expenditures in the
governmental funds but as an increase in the net position in the Statement of Activities.
2,435,000
2,420,000
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Accrued interest payable 111,519 (130,533)
Amortization of bond discounts and premiums 99,963 97,086
Proceeds from long-term debt are recognized as an other financing source in the
governmental funds but as a decrease in net position in the Statement of Activities. - (6,935,000)
The governmental funds report the effect of premiums, discounts and
similar items when debt is first issued, whereas these amounts are deferred and
amortized in the Statement of Activities.
Bond discounts and premiums - (239,309)
Governmental funds recognized pension contributions as expenditures at the time
of payment whereas the Statement of Activities factors in items related to pensions 931,948 206,189
on a full accrual perspective.
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes (5,874) (22,531)
Special assessments (1,768,796) 3,132,396
Loans and grants receivable 2,619,587 1
Internal service funds are used by management to charge the cost of insurance to
individual funds. This amount is net revenue (loss) attributable to governmental funds. (460,825) (363,960)
Change in net position - governmental activities $ 27,402,634 $ 24,381,468
The notes to financial statements are an integral part of this statement. 40
City of Cottage Grove
Statement of Net Position - Proprietary Funds
December 31, 2020
Business -Type
Activities - Enterprise Funds
Governmental
Cottage Grove
Water
Sewer
Activities -
Street Light
EMS Fund
Operating
Operating
Internal Service
Fund (630)
(660)
(610)
(620)
Total
Funds
Assets
Current assets
Cash and investments
$ 438,809
$ 586,659
$ 6,783,803
$ 2,735,721
$ 10,544,992
1,317,222
Accounts receivable
128,576
1,384,256
377,009
532,782
2,422,623
12,914
Interfund loan receivable
-
-
27,500
-
27,500
-
Due from other governments
8,761
44,529
16,276
69,566
-
Inventories
-
-
-
-
121,143
Prepaid items
2,062
2,417
166,293
170,772
422,113
Total current assets
567,385
1,981,738
7,235,258
3,451,072
13,235,453
1,873,392
Noncurrent assets
Interfund loan receivable
-
2,832,500
2,832,500
-
Capital assets
Land and land improvements
364,803
154,785
519,588
424,665
Buildings and improvements
7,616,850
-
7,616,850
928,870
Equipment and furniture
-
-
-
-
-
137,566
Machinery and equipment
109,567
888,140
1,188,479
276,913
2,463,099
512,274
Other improvements
9,758,873
-
-
-
9,758,873
-
Water and sewer lines
51,624,533
35,546,036
87,170,569
Total capital assets
9,868,440
888,140
60,794,665
35,977,734
107,528,979
2,003,375
Accumulated depreciation
(3,347,929)
(460,147)
(18,928,742)
(9,383,276)
(32,120,094)
(1,018,122)
Net capital assets
6,520,511
427,993
41,865,923
26,594,458
75,408,885
985,253
Total noncurrent assets
6,520,511
427,993
41,865,923
29,426,958
78,241,385
985,253
Total assets
7,087,896
2,409,731
49,101,181
32,878,030
91,476,838
2,858,645
Deferred Outflows of Resources
Deferred ouflows of resources related to pensions
11,606
421,253
53,311
16,160
502,330
65,154
Deferred outflows of resources related to OPEB
471
2,885
1,870
619
5,845
2,768
Total deferred outflows of resources
12,077
424,138
55,181
16,779
508,175
67,922
Total assets and deferred outflows
ofresources
$ 7,099,973
$ 2,833,869
$ 49,156,362
$ 32,894,809
$ 91,985,013
$ 2,926,567
Liabilities
Current liabilities
Accounts payable
$ 26,834
$ 11,353
$ 72,770
$ 16,963
$ 127,920
$ 419,307
Salaries payable
4,527
93,605
21,475
8,136
127,743
31,533
Due to other governments
-
5,476
25,551
160,407
191,434
7,764
Deposits payable
-
-
-
64,000
64,000
-
Compensated absences payable
4,931
45,965
48,549
18,138
117,583
45,841
Total current liabilities
36,292
156,399
168,345
267,644
628,680
504,445
Noncurrent liabilities
Compensated absences payable
3,053
11,777
12,312
2,567
29,709
27,662
Net pension liability
97,204
835,914
446,479
135,338
1,514,935
545,672
Total OPEB liability
3,747
22,948
14,878
4,927
46,500
22,011
Total noncurrent liabilities
104,004
870,639
473,669
142,832
1,591,144
595,345
Total liabilities
140,296
1,027,038
642,014
410,476
2,219,824
1,099,790
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
4,409
519,735
20,250
6,138
550,532
24,749
Deferred inflows of resources related to OPEB
234
1,436
931
308
2,909
1,377
Total deferred inflows of resources
4,643
521,171
21,181
6,446
553,441
26,126
Net Position
Net investment in capital assets
6,520,511
427,993
41,865,923
26,594,458
75,408,885
985,253
Unrestricted
434,523
857,667
6,627,244
5,883,429
13,802,863
815,398
Total net position
6,955,034
1,285,660
48,493,167
32,477,887
89,211,748
1,800,651
Total liabilities, deferred inflows
of resources, and net position
$ 7,099,973
$ 2,833,869
$ 49,156,362
$ 32,894,809
$ 91,985,013
$ 2,926,567
Net position proprietary funds 89,211,748
Some amounts reported for business -type activities in the Statement of Net Position are different
because certain internal service fund assets and liabilities are included with business -type activities. (106,266)
Net position business -type activities $ 89,105,482
The notes to financial statements are an integral part of this statement. 41
City of Cottage Grove
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
For the Year Ended December 31, 2020
Operating Revenue
Charges for services - user fees
Water meter/street light material sales
Insurance refunds and reimbursements
Total operating revenues
Operating Expenses
Personal services
Commodities
Commodities - items for resale
Contractual services
Disposal - contractual services - MCES
Claims
Depreciation
Total operating expenses
Operating loss
Nonoperating Revenues (Expenses)
Investment earnings
Interest on interfund debt
Loss on disposal of property
Intergovernmental grants
Miscellaneous
Total nonoperating revenues
(expenses)
Income (loss) before capital
contributions and transfers
Capital contributions
Transfers out
Change in net position
Net Position
Beginning of year
End of year
Business -Type Activities - Enterprise Funds
Cottage Grove Water Sewer
Street Light EMS Fund Operating Operating
Fund(630) (660) (610) (620)
$ 688,952 $ 1,772,704 $ 2,777,555 $ 3,177,650
218,300 - 215,795 -
907,252 1,772,704 2,993,350 3,177,650
193,995 1,394,741 734,944 241,756
66,528 64,742 183,932 16,632
166,395 - - -
505,174 262,478 844,125 550,369
- - - 2,020,595
206,857 80,233 1,231,191 603,940
1,138,949 1,802,194 2,994,192 3,433,292
(231,697) (29,490) (842) (255,642)
8,048 10,472 91,444 40,223
- - 1,325 28,325
- 39,347 61,849 -
55,706 - 9,570 12,546
63,754 49,819 164,188 81,094
(167,943) 20,329 163,346 (174,548)
603,250 - 4,135,998 2,366,894
(48,650) (94,500) (388,336) (295,956)
386,657 (74,171) 3,911,008 1,896,390
6,568,377 1,359,831 44,582,159 30,581,497
$ 6,955,034 $ 1,285,660 $ 48,493,167 $ 32,477,887
Change in net position reported above
Adjustment to reflect the consolidation of internal service fund activity related to enterprise funds
Change in net position of business -type activities
The notes to financial statements are an integral part of this statement. 42
Activities -
Internal Service
Total Funds
$ 8,416,861 $ 4,404,995
434,095 -
- 46,595
8,850,956 4,451,590
2,565,436
2,931,104
331,834
637,487
166,395
-
2,162,146
1,099,205
2,020,595
-
-
369,067
2,122,221
74,032
9,368,627
5,110,895
(517,671) (659,305)
150,187 33,577
29,650 -
- (21,820)
101,196 -
77,822 13,066
358,855 24,823
(158,816) (634,482)
7,106,142 42,986
(827,442) -
6,119,884 (591,496)
83,091,864 2,392,147
$ 89,211,748 $ 1,800,651
$ 6,119,884
(130,671)
5,989,213
43
Cash Flows - Operating Activities
Receipts from customers and users
Receipts from insurance refunds and reimbursements
Payments to suppliers
Payments to employees
Miscellaneous revenue
Net cash flows - operating activities
Cash Flows - Noncapital
Financing Activities
Intergovernmental revenue
Transfer to other funds
Net cash flows - noncapital
financing activities
Cash Flows - Capital Related
Financing Activities
Acquisition of capital assets
Cash Flows - Investing Activities
Interest and dividends received
Interest on interfund loan
Payment received on interfund loan
Net cash flows - investing activities
Net change in cash and cash equivalents
Cash and Cash Equivalents
January 1
December 31
Reconciliation of Operating Loss
to Net Cash Flows - Operating Activities
Operating loss
Adjustments to reconcile operating loss to
net cash flows - operating activities
Depreciation expense
Miscellaneous revenue
Pension expense
Receivables
Prepaid items
Inventory
Accounts payable
Due to other governmental units
Salaries payable
Compensated absences payable
OPEB expense
Total adjustments
Net cash flows - operating activities
Noncash Investing, Capital, and
Financing Activities
Capital asset contributions from governmental activities
Capital asset contributions from developers
City of Cottage Grove
Statement of Cash Flows -
Proprietary Funds
For the Year Ended December 31, 2020
Business-Tvne Activities - Entemrise Funds
Governmental
Cottage Grove
Water
Sewer
Activities -
Street Light
EMS Fund
Operating
Operating
Internal Service
Fund(630)
(660)
(610)
(620)
Total
Fund
$ 906,881
$ 1,645,342
$ 2,979,713
$ 3,265,109
$ 8,797,045
$ 4,398,255
-
-
-
-
-
46,595
(783,661)
(334,412)
(1,014,759)
(2,458,166)
(4,590,998)
(2,217,467)
(161,941)
(1,425,174)
(799,990)
(246,140)
(2,633,245)
(2,832,889)
55,706
9,570
12,546
77,822
13,065
16,985
(114,244)
1,174,534
573,349
1,650,624
(592,441)
39,347 61,849 101,196
(48,650) (94,500) (388,336) (295,956) (827,442)
(48,650) (55,153) (326,487) (295,956) (726,246)
(43,691) (7,738) (51,429) (13,635)
8,047 10,472 91,444
40,223
150,186 33,577
- - 1,325
28,325
29,650 -
- 210,000
-
210,000 -
8,047 10,472 302,769
68,548
389,836 33,577
(23,618) (158,925) 1,107,125
338,203
1,262,785 (572,499)
462,427 745,584 5,676,678 2,396,666 9,281,355 1,889,721
$ 438,809 $ 886,659 $ 6, 883,803 $ 2, 334,869 $ 10, 444,140 $ 1, 117,222
$ (231,697) $ (29,490) $ (842) $ (255,642) $ (517,671) $ (659,305)
206,857
80,233
1,231,191
603,940
2,122,221
74,032
55,706
-
9,570
12,546
77,822
13,065
28,194
(43,619)
(18,803)
20,271
(13,957)
93,400
(371)
(127,362)
(13,637)
87,459
(53,911)
(6,740)
-
(929)
(363)
2,090
798
(131,628)
-
-
-
-
(25,544)
(45,044)
(6,263)
9,143
(13,474)
(55,638)
38,961
(520)
-
4,518
140,814
144,812
6,503
(648)
6,881
(66,036)
(32,014)
(91,817)
(18,302)
3,407
5,347
21,828
7,542
38,124
17,657
1,101
958
(2,035)
(183)
(159)
5,460
248,682
(84,754)
1,175,376
828,991
2,168,295
66,864
$ 16985
$ (114,244)
$ 1,174,534
$ 773,349
$ 1, 550,624
$ (592,441)
$ 425,237
$
$ 2,661,426
$ 756,176
$ 3,842,839
$ 42,986
178,013
1,474,572
1,610,718
3,263,303
-
The notes to financial statements are an integral part of this statement. 44
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Cottage Grove was incorporated in 1974 and operates under the State of Minnesota
Statutory Plan A form of government. The governing body consist of a five -member City Council
elected by voters of the City.
The financial statements of the City of Cottage Grove have been prepared in conformity with generally
accepted accounting principles 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 of Cottage Grove (the primary government) and its component unit. The
component unit discussed below is included in the City's reporting entity because of the significance of
its operational and financial relationship with the City.
Component Unit
The Economic Development Authority (EDA) is considered a component unit of the City because the
Council appoints the members of the governing authority and because the EDA is in a relationship of
financial benefits or burden to the City. It is governed by a board which is made up of two City council
members and five other members. The EDA provides services to the City and to potential future
business owners within the City. The financial position and results of operations of the EDA component
unit is discretely presented in the primary government's basic financial statements. The EDA is reported
in a separate column to emphasize that it is legally separate from the City. The component unit activity
is reported on the modified accrual basis of accounting. Separate financial statements are not prepared
for the EDA.
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 unit.
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, are 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, service or privileges provided
by a given function or business -type activity and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or business -type activity. Taxes
and other items not included in program revenues are reported instead as general revenues.
45
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Government -Wide and Fund Financial Statements (Continued)
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 statements. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of the
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 available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
government considers 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 except for debt service expenditures,
as well as expenditures related to compensated absences, claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
The government reports the following major governmental funds:
General Fund — This 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.
Closed Debt Fund — This fund accounts for the accumulation of residual resources from debt funds
that have been closed as the associated debt has been satisfied.
Municipal Building Capital Project Fund — This fund accounts for the accumulation of resources and
construction or remodeling costs of municipal buildings and facilities.
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
MSA Construction Capital Project Fund — This fund accounts for projects related to Municipal State
Aids.
Future Projects Fund — This fund accounts for the preliminary expenditures of projects which do not
have a source of funding or which have most of their funding from non -city sources.
Water Connection and Area Fund — This fund accounts for the projects that are partially paid for
with connection charges.
Developer Petitioned Projects — This fund accounts for costs of infrastructure projects petitioned by
developers and special assessment revenue which repay the costs.
The government reports the following major proprietary funds:
Street Light Fund — This fund accounts for customer street light and service charges which are used
to finance street light operating expenses.
Cottage Grove EMS Fund — This fund accounts for the operation of the Cottage Grove ambulance
service that serves the cities of Cottage Grove, Newport, Saint Paul Park, and Grey Cloud Island.
Water Operating Fund — This fund accounts for customer water service charges which are used to
finance water operating expenses.
Sewer Operating Fund — This fund accounts for customer sewer service charges which are used to
finance sewer operating expenses.
Additionally, the government reports the following fund type:
Internal service funds account for the City's self-insurance, fleet maintenance, and information
services provided to other departments of the government on a cost reimbursement basis.
As a general rule, the effect of interf ind 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 similarity treated when they involve other funds of the City of Cottage
Grove. Elimination of these charges would distort the direct costs and program revenues reported for the
various functions concerned.
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.
47
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Proprietary funds distinguish operating revenues and expenses from non -operating 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 revenue of
the water, sewer, ambulance, and street light enterprise funds are charges to customers for sales and
services. The ambulance fund operating revenues are net of write offs mandated by various government
agencies (including Medicare and Medicaid). Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, and then unrestricted resources as needed.
D. Budgets
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Budgeted
amounts are reported as originally adopted, and as amended by the City Council. Individual amendments
were not material in relation to the original appropriations which were adjusted. Budgeted expenditure
appropriations can be carried forward to the next budget year subject to City Council approval.
E. Legal Compliance — Budgets
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator 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. Per statute,
public meetings are held to receive taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can be
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget up
to $2,500. Additional interdepartmental or interfund appropriations and deletions are authorized
by the City Council with expenditure reductions, fund (contingency) reserves or additional
revenues. The City Council may authorize transfers of budgeted amounts between City funds.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund, Special Revenue Funds, certain capital Project Funds, Enterprise Funds, and
the Internal Service Fund. The General Fund and Special Revenue Funds are the only funds with
legally adopted annual budgets.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for
the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These are not reflected in the financial statements.
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Legal Compliance — Budgets (Continued)
7. 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 bud award of
the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level. The legal
level of budgetary control is at the expenditure category level (i.e., personal services,
commodities, contractual services, and capital outlay) within each activity. All amounts over
budget have been approved by the City Council through the disbursement approval process.
The following is a listing of expenditure categories that exceed budget appropriations for nonmajor
funds:
Final Budget Actual Over Budget
Nonmajor Funds
Storm Water Maintenance $ 536,835 $ 773,935 $ 237,100
HERO Center Operations 406,100 497,461 91,361
COVID 19 Pandemic Relief - 2,826,787 2,826,787
F. Deposits and Investments
Cash and investments include balances from all funds and are pooled and invested to the extent available
in authorized investments. Earnings from investments are allocated to the individual funds on the basis
of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received.
Investments are stated at fair value, based upon quoted market prices as of the balance sheet date.
Certain investments for the City are reported at fair value as disclosed in Note 2. The City categorizes its
fair value measurements within the fair value hierarchy established by generally accepted accounting
principles. The Hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant
other observable inputs; Level 3 inputs are significant unobservable inputs.
For purposes of the statement of cash flows for the proprietary funds, cash equivalents are considered to
be all highly liquid investments with a maturity of three months or less when purchased. All of the cash
and investments allocated to the proprietary funds have original maturities of 90 days or less. Therefore,
the entire balances in such funds are considered cash equivalents.
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Receivables and Payables
During operations, numerous transactions occur between individual funds for goods provided or services
rendered. Short-term interfund loans are classified as "interfund receivables/payables." All short-term
interfund receivables and payables at December 31, 2020, are planned to be eliminated in 2020. Long-
term interfund loans are classified as "interfund loans receivable/payable." Any residual balances
outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances."
Property taxes, special assessments, and ambulance receivables have been reported net of estimated
uncollectible accounts (see Note 1 H, I and L). 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. 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.
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 recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes 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 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 inflows of resources because they are not
available to finance current expenditures.
I. 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.
50
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. Special Assessment Revenue Recognition (Continued)
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. Proceeds of sales from tax forfeited properties are allocated first to the County's cost of
administering all tax forfeit properties. Pursuant to State Statues, 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) are also
recognized as revenue for the current year. All remaining delinquent, deferred and special deferred
assessments receivable in governmental funds are completely offset by deferred inflows of resources.
J. Inventories
Inventories are stated at cost, which approximates market, using the first -in, first -out (FIFO) method and
consist of items for resale, expendable supplies, and vehicle repair parts. The cost of such inventories is
recorded as expenditures/expenses when consumed rather than when purchased in both government -
wide and fund financial statements.
K. 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. The cost of prepaid items are
recorded as expenditures/expenses when consumed rather than when purchased.
L. Allowance for Uncollectible
The City directly bills for individuals for ambulance services. The City reserves an amount as
uncollectible based on historical collection rates. The amounts of the estimated uncollectible ambulance
billings to individuals as of December 31, 2020, were $321,700.
M. Properties Held for Resale
Property is acquired by the City for redevelopment purposes and subsequent resale. Properties held for
resale is reported as an asset at the lower of cost or estimated fair value. Fair value estimates have been
based on estimated realizable sales proceeds net of selling expenses.
51
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable government or business -type activities
columns in the government -wide financial statements. Infrastructure assets have been capitalized
retroactively to 1980. Capital assets are defined by the government as assets with an initial, individual
cost of more than $5,000 (amount not rounded) and an estimated useful life more than one year. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance
and repair which do not add to the value of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of
the capitalized value of the assets constructed. For the year ended December 31, 2020, no interest was
capitalized in connection with construction in progress.
Capital assets not being depreciated include land, easements and construction in progress. Property,
plant and equipment of the primary government, as well as the component units, is depreciated using the
straight-line method over the following estimated useful lives:
Assets
Years
Buildings and improvements
20-50
Equipment and furniture
3-10
Machinery and equipment
5-20
Other improvements
5-20
Streets
50
Storm sewers
50
Sidewalks
50
Trails
20
Street lights
50
Water and sewer lines
50
Capital assets of the water and sewer utility operations include the water distribution system and sewage
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 contributed to the
sewer and water 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.
52
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Deferred Outflows and Inflows of Resources
In addition to liabilities, the statement of financial position and Fund Financial statements will
sometimes report a separate section for deferred inflows of resources. This separate financial statement
element represents an acquisition of net position that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. The City presents deferred inflows of
resources on the Governmental Fund Balance Sheet as unavailable revenues. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts became available. The
City presents deferred inflows of resources on the Statements of Net Position for amounts related to
pensions and OPEB.
In addition to assets, the statements of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until that time. The City presents deferred outflows of resources on the
Statements of Net Position for amounts related to pensions and OPEB.
P. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused annual leave benefits Under
the City's personnel policies and collective bargaining agreements, city employees are granted annual
leave benefits in varying amounts based on length of service. Annual Leave accruals vary from 18 to 26
days per year.
As benefits accrue to employees, the accumulated leave amounts are reported as an expense and liability
in the proprietary fund financial statements. 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. In
accordance with the provisions of GASB 16, Accounting for Compensated Absences, no liability is
recorded for non -vesting accumulating rights to receive accumulated leave benefits. However, a liability
is recognized for that portion of accumulating leave benefits that is vested as severance pay.
Q. 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
are deferred and amortized over the life of the bonds.
R. Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA), and additions to/deductions from PERA's fiduciary net position have been determined on the
same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and
refunds are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
53
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
S. Fund Balance
In the fund financial statements, governmental funds report fund balances in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable — Amounts that cannot be spent because they are not in spendable form, such as
prepaid items and inventory.
Restricted — Amounts related to externally imposed constraints established by creditors, grantors, or
contributors; or constraints imposed by state statutory provisions.
Committed — Amounts constrained for specific purposes that are internal imposed by formal action
(resolution) of the City Council. Committed amounts cannot be used for any other purpose unless the
Council modifies or rescinds the commitment by resolution.
Assigned — Amounts constrained for specific purposes that are internally imposed. The Council has
adopted a fund balance policy which delegates the authority to assign fund balances to the City
Administrator and/or Finance Director.
Unassigned — The residual classification for the General fund and also negative residual amounts in
other funds.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund
balance is available. Additionally, the City would first use committed, then assigned, and lastly
unassigned amounts of unrestricted fund balance when expenditures are made.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an
unassigned fund balance range of no less than 55% of the subsequent year's budgeted expenditures to
provide sufficient working capital and margin of safety to address local emergencies without borrowing.
T. Net Position
Net position represents the difference between assets and deferred outflows of resources; and liabilities
and deferred inflows of resources in the government -wide financial statements. Net investment in capital
assets, consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of
any long-term debt used to build or acquire the capital assets. Net position is reported as restricted in the
government -wide financial statement when there are limitations on use through external restrictions
imposed by creditors, grantors, or laws or regulations of other governments.
U. Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it
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. Interfund loans are reported as
an interfund loan receivable or payable which offsets the movement of cash between funds. All other
interfund transactions are reported as transfers.
54
City of Cottage Grove
Notes to Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
V. Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting
principles (GAAP) requires management to make estimates that affect the amounts reported in the
financial statements during the reporting period. Actual results could differ from such estimates.
W. Comparative Data
Summarized comparative data for the previous year has been presented only for certain sections of the
accompanying financial statements in order to provide an understanding of the changes in the City's
financial position and operations. Certain reclassifications have been made to prior year data to conform
to the current year presentation. The reclassifications had no effect on the change in net position or total
net position as previously reported.
NOTE 2 — DEPOSITS AND INVESTMENTS
A. Deposits
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's
portion of this pool is displayed on the statement of net position and balance sheets as "Cash and
Investments."
Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure,
the City will not be able to recover its deposits. Neither the City nor the Cottage Grove Economic
Development Authority, a discretely presented component unit, has a deposit policy for custodial credit
risk — deposits beyond the requirements of state statutes. As of December 31, 2020, all of the deposits
were insured or collateralized by securities held by the City or its agent in the City's name.
In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are
authorized by the City Council. Minnesota Statutes require that all deposits be protected by insurance,
surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not
covered by insurance or corporate surety bonds. Authorized collateral includes: U.S. government
treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of a state or local
government rated "A" or better; revenue obligations of a state or local government rated "AA" or better;
irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by a
federal agency. Minnesota Statutes require securities pledged as collateral be held in safekeeping in a
restricted account at the Federal Reserve Bank or at an account at a trust department of a commercial
bank or other financial institution not owned or controlled by the depository.
B. Investments
Minnesota Statutes and the City's investment policy authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities
or organizations created by an act of congress, excluding mortgage -backed securities defined as high
risk.
55
City of Cottage Grove
Notes to Financial Statements
NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
b) General Obligations of the State of Minnesota or any of its municipalities as follow:
1) General obligation of any state or local government with taxing powers which is rated "A"
or better by a national bond rating service;
2) Revenue obligation of any state or local government with taxing powers which is rated
"AA" or better by a national bond rating service; and
3) General obligation of the Minnesota Housing Finance Agency rated "A" or better by a
national bond rating agency.
c) Bankers' acceptance of United States banks eligible for purchase by the Federal Reserve System.
d) Commercial paper of the highest quality (Al, PI), and maturing in 270 days or less.
e) Repurchase agreements from national or state banks that are members of the Federal Reserve System
with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities
to the Federal Reserve Bank of New York.
f) Certificates of Deposit collateralized by FDIC or FSLIC insurance. Deposits exceeding $250,000
insurance shall be covered by a surety bond or collateralized with U.S. Treasury or agency securities
computed at fair value which shall be at least 10% more than the amount of each deposit in excess of
the insured portions. All collateral shall be assigned to the City from the depository.
g) Shares of mutual funds holdings pursuant to Minnesota Statute 118A.04. The City participates in the
Minnesota Municipal Money Market Fund (4M Fund) whereby, the fair value of the position in the
pool is the same as the value of the pool shares owned.
Interest rate risk — Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investment. The City's formal investment policy limits investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates. The policy also states
that no more than 25% of total investments should extend beyond five years and in no circumstance
should any extend beyond ten years.
Investment Maturities
Credit Risk
Fair
Less than
Investment Type
Value
One Year
1-5 Years
6-10 Years Rating
Agency
U.S. Agencies
Federal Home Loan Bank - FHLB
$ 1,014,430
$ -
$ 1,014,430
$ AA+/Aaa
S&P/Moody's
Freddie Mac - FHLMC
2,503,805
1,000,150
1,503,655
AA+/Aaa
S&P/Moody's
Federal Farm Credit Bank
4,449,819
2,999,040
1,450,779
AA+/Aaa
S&P/Moody's
Federal National Mortgage Association - FNMA
4,009,669
1,000,030
3,009,639
NR
N/A
US Treasury
2,007,200
1,001,730
1,005,470
NR/Aaa
S&P/Moody's
Municipal Obligations
11,958,733
175,649
11,783,084
AA+/Aaa
S&P/Moody's
Pooled Money Markets
4,892,144
4,892,144
-
NR
N/A
Negotiable CD's
11,928,734
7,653,434
4,275,300
NR
N/A
Total Pooled Investments
42,764,534
$ 18,722,177
$ 24,042,357
$
Deposits
7,820,858
Petty Cash and Change
15,421
Total Cash and Investments
$ 50,600,813
City of Cottage Grove
Notes to Financial Statements
NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Custodial Credit Risk — For an investment, custodial credit risk is the risk that, in the event of failure of
the depository financial institution, the City will not be able to recover the value of its investment or
collateral securities that are in the possession of an outside parry. The City has no custodial credit risk
for its investments since all the City's investments held in safekeeping by U.S. Trust in the City's name
are insured and registered.
Credit Risk — Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill
its obligations. As indicated previously, Minnesota Statute requires Commercial paper to be of the
highest quality (A1, P1) and municipal general obligations need an "A" rating or better.
Concentration of Credit Risk — The City's investment policy places no limit on the amount that may be
invested in any one issuer. The following is a list of investments by issuer which individually comprise
more than 5% of the City's total investments:
Type
Federal National Mortgage Association - FNMA
Freddie Mac - FHLMC
Federal Farm Credit Bank
Fair
Value Percent
$ 4,009,669
9%
2,503,805
6%
4,449,819
10%
The City has the following recurring fair value measurements as of December 31, 2020:
• $2,007,200 of $42,764,532 are valued using quoted market prices (Level 1 inputs).
• $40,757,332 of $42,764,532 are valued using a matrix pricing model (Level 2 inputs).
57
City of Cottage Grove
Notes to Financial Statements
NOTE 3 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020, was as follows:
Primary Government
Governmental activities
Capital assets not being depreciated
Land
Permanent easements
Construction in progress
Total capital assets
not being depreciated
Capital assets being depreciated
Buildings and improvements
Equipment and furniture
Machinery and equipment
Other improvements
Infrastructure
Streets
Storm sewers
Sidewalks/trails
Total capital assets
being depreciated
Less accumulated depreciation for
Buildings and improvements
Equipment and furniture
Machinery and equipment
Other improvements
Infrastructure
Streets
Storm sewers
Sidewalks/trails
Total accumulated
depreciation
Total capital assets being
depreciated, net
Governmental activities capital
assets, net
Beginning Ending
$ 18,105,944
$ -
$ - $
18,105,944
1,157,202
-
-
1,157,202
20,352,945
25,154,647
32,751,335
12,756,257
39,616,091
25,154,647
32,751,335
32,019,403
43,885,150
19,798,244
-
63,683,394
1,172,718
298,485
45,752
1,425,451
13,558,442
1,854,499
349,657
15,063,284
8,510,164
445,336
-
8,955,500
134,439,396
9,059,520
-
143,498,916
38,675,668
3,622,619
-
42,298,287
7,012,663
813,463
-
7,826,126
247,254,201
35,892,166
395,409
282,750,958
14,350,501
1,442,299
-
15,792,800
1,071,787
112,185
23,932
1,160,040
7,769,096
877,376
236,462
8,410,010
3,995,506
313,859
-
4,309,365
30,685,712
2,768,872
-
33,454,584
9,130,065
807,932
-
9,937,997
2,120,051
161,091
-
2,281,142
69,122,718
6,483,614
260,394
75,345,938
178,131,483
29,408,552
135,015
207,405,020
$ 217,747,574 $ 54,563,199 $ 32,886,350 $ 239,424,423
City of Cottage Grove
Notes to Financial Statements
NOTE 3 — CAPITAL ASSETS (CONTINUED)
Primary Government
Business -type activities
Capital assets not being depreciated
Land
Capital assets being depreciated
Land improvements
Buildings and improvements
Machinery and equipment
Other improvements
Water and sewer lines
Total capital assets
being depreciated
Less accumulated depreciation for
Land improvements
Buildings and improvements
Machinery and equipment
Other improvements
Water and sewer lines
Total accumulated
depreciation
Total capital assets being
depreciated, net
Business -type activities
capital assets, net
Beginning Ending
Balance Increases Decreases Balance
$ 479,785
$ - $
-
$ 479,785
39,803
-
-
39,803
6,272,428
1,344,422
-
7,616,850
2,325,897
147,504
10,302
2,463,099
9,155,623
603,250
-
9,758,873
82,108,173
5,062,396
-
87,170,569
99,901,924
7,157,572
10,302
107,049,194
13,128
795
-
13,923
2,892,614
257,234
-
3,149,848
1,511,481
131,019
10,302
1,632,198
3,076,312
194,847
-
3,271,159
22,514,640
1,538,326
-
24,052,966
30,008,175
2,122,221
10,302
32,120,094
69,893,749
5,035,351
-
74,929,100
$ 70,373,534
$ 5,035,351 $
-
$ 75,408,885
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government
Economic development
Public safety
Public works
Culture and recreation
Total depreciation expense - governmental activities
Business -type activities
Street lights
Cottage Grove EMS
Water operating
Sewer operating
Total depreciation expense - business -type activities
$ 162,326
44,675
1,170,532
4,138,867
967,214
$ 6,483,614
$ 206,857
80,233
1,231,191
603,940
$ 2,122,221
59
City of Cottage Grove
Notes to Financial Statements
NOTE 4 — LONG-TERM DEBT
A. General Obligation Debt
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital improvements. The City issues special assessment bonds to finance various improvements and
will be repaid primarily from special assessments levied on the properties benefiting from the
improvements. The reporting entity's long-term debt is segregated between the amounts to be repaid
from governmental activities and amounts to be repaid from business -type activities. As of
December 31, 2020, the governmental long-term debt of the financial reporting entity consisted of the
following:
Interest Issue
Rate Date
Final Original Principal
Maturity Issue Outstanding
Primary government:
Governmental Activities
General Obligation Tax Increment Bonds
G.O. Tax Increment Bonds of 2004A 3.00-4.65% 7/l/2004 2/l/2024 $ 1,405,000 $ 885,000
G.O. Tax Increment Refunding Bonds of 2014A 2.00-2.50% 5/29/2014 2/1/2021 1,405,000 200,000
Total General Obligation Tax Increment Bonds 2,810,000 1,085,000
General Obligation Capital Improvement Bonds
G.O. CIP Bonds of2017A 2.50-3.25% 5/11/2017 2/l/2038 9,155,000 8,455,000
G.O. CIP Bonds of 2019A 3.00-4.00% 2/14/2019 2/l/2040 4,090,000 4,090,000
Total General Obligation Capital Improvement Bonds 13,245,000 12,545,000
G.O. Refunding Bonds of 2016A
Equipment Certificate 2019B
Special Assessment Bonds with Government Commitment
G.O. Improvement Bonds of 2012A
G.O. Improvement Bonds of 2013A
G.O. Improvement Bonds of 2015A
G.O. Improvement Bonds of 2016B
G.O. Improvement Bonds of 2018A
Total Special Assessment Bonds
Bond premium
Total Governmental Activities Bonds
Compensated absences payable
Total - governmental activities
Business Type Activities
Compensated absences payable
Total - primary government
Component Unit - EDA
Compensated absences payable
Total indebtedness - component unit
2.00-3.00% 1/28/2016 2/l/2027 4,660,000
3.00% 2/14/2019 2/l/2029 2,845,000
0.30-2.20%
3/13/2012
3.00-3.50%
9/26/2013
2.50-3.00%
5/27/2015
2.00-2.10%
11/16/2016
3.00%
6/26/2018
2/l/2027
1,865,000
2/l/2029
7,345,000
2/1/2031
5,700,000
2/1/2033
4,275,000
2/l/2035
7,620,000
26,805,000
50,365,000
2,550,000
2,595,000
890,000
4,840,000
4,305,000
3,575,000
7,620,000
21,230,000
1,036,364
41,041,364
1,073,065
$ 50,365,000 42,114,429
147,292
$ 42,261,721
$ 10,145
zu
City of Cottage Grove
Notes to Financial Statements
NOTE 4 - LONG-TERM DEBT (CONTINUED)
B. Minimum Debt Payments
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending
December 31,
2021
2022
2023
2024
Total
Year Ending
December 31,
2021
2022
2023
2024
2025
2026-2030
2031-2035
Total
Year Ending
December 31,
2021
2022
2023
2024
2025
2026-2027
Total
Tax Increment Bonds
Governmental Activities
Principal Interest Total
$ 265,000 $ 41,540 $ 306,540
255,000 31,872 286,872
275,000 19,810 294,810
290,000 6,743 296,743
$ 1,085,000 $ 99,965 $ 1,184,965
Principal
Special Assessment Bonds
Governmental Activities
Interest Total
$ 1,655,000
$ 569,088
$ 2,224,088
1,685,000
523,525
2,208,525
1,740,000
476,605
2,216,605
1,775,000
428,240
2,203,240
1,810,000
378,645
2,188,645
8,540,000
1,136,686
9,676,686
4,025,000
248,390
4,273,390
$ 21,230,000 $ 3,761,179 $ 24,991,179
G.O. Refunding Bonds
Governmental Activities
Principal
Interest Total
$ 340,000 $
60,000
$ 400,000
350,000
49,650
399,650
355,000
39,075
394,075
365,000
28,275
393,275
375,000
19,050
394,050
765,000
15,350
780,350
$ 2,550,000 $
211,400
$ 2,761,400
61
City of Cottage Grove
Notes to Financial Statements
NOTE 4 - LONG-TERM DEBT (CONTINUED)
B. Minimum Debt Payments (Continued)
Year Ending
December 31,
2021
2022
2023
2024
2025
2026-2030
2031-2035
2036-2040
Total
Year Ending
December 31,
2021
2022
2023
2024
2025
2026-2029
Total
G.O. CIP Bonds
Governmental Activities
Principal
Interest
Total
$ 510,000
$ 374,783 $
884,783
525,000
357,784
882,784
545,000
340,209
885,209
560,000
322,059
882,059
580,000
303,309
883,309
3,180,000
1,238,794
4,418,794
3,645,000
755,964
4,400,964
3,000,000
191,633
3,191,633
$ 12,545,000
$ 3,884,535 $
16,429,535
Equipment Certificates
Governmental Activities
Principal
Interest
Total
$ 255,000
$ 74,025
$ 329,025
265,000
66,225
331,225
270,000
58,200
328,200
280,000
49,950
329,950
285,000
41,475
326,475
1,240,000
75,900
1,315,900
$ 2,595,000 $ 365,775 $ 2,960,775
62
City of Cottage Grove
Notes to Financial Statements
NOTE 4 — LONG-TERM DEBT (CONTINUED)
C. Changes in Long -Term Liabilities
Primary Government
Governmental activities
Bonds payable
General obligation bonds
Special assessment bonds
Equipment certificate
Bond premiums
Total bonds payable
Beginning
Balance Additions Retirements
Ending Due Within
Balance One Year
$ 17,140,000 $ - $ 960,000 $ 16,180,000
22,455,000 - 1,225,000 21,230,000
2,845,000 - 250,000 2,595,000
1,136,327 - 99,963 1,036,364
43,576,327 - 2,534,963 41,041,364
$ 1,115,000
1,655,000
255,000
3,UL:),000
Compensated absences payable 982,917 1,026,299 936,151 1,073,065 821,864
Total governmental activities 44,559,244 1,026,299 3,471,114 42,114,429 3,846,864
Business -type activities
Compensated absences payable 109,168 189,213 151,089 147,292 117,583
Total primary government $ 44,668,412 $ 1,215,512 $ 3,622,203 $ 42,261,721 $ 3,964,447
Component Unit
Economic Development Authority
Compensated absences payable $ 8,705 $ 11,544 $ 10,104 $ 10,145 $ 10,145
For the governmental activities, compensated absences are generally liquidated by the General Fund.
All long-term bonded indebtedness outstanding at December 31, 2020, is backed by the full faith and
credit of the City, including special assessment and revenue bond issues. Delinquent assessments
receivable at December 31, 2020, totaled $21,532.
NOTE 5 — PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended December 31,
2020, was $1,318,410. The components of pension expense are noted in the following plan summaries.
The General Fund and Water Operating, Sewer Operating, Street Light, Cottage Grove EMS and
Internal Service Funds typically liquidate the liability related to pensions.
Public Employees' Retirement Association
A. Plan Description
General Employees Retirement Plan
The City participates in the following cost -sharing multiple -employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the
Internal Revenue Code.
63
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
A. Plan Description (Continued)
General Employees Retirement Plan (Continued)
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the Police and Fire Plan also covers police officers and firefighters belonging to a local relief association
that elected to merge with and transfer assets and administration to PERA.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last
terminated their public service.
General Employees Plan Benefits
General Employees Plan benefits are based on a member's highest average salary for any 5 successive
years of allowable service, age, and years of credit at termination of service. Two methods are used to
compute benefits for PERA's Coordinated Plan members. Members hired prior to July 1, 1989, receive
the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for a Coordinated members is 1.2% for each of the first 10 years
of service and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase is equal to 50% of the cost -of -living adjustment (COLA) announced by the SSA, with a
minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the
annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will
receive the full increase. For recipients receiving the annuity or benefit for at least one month but less
than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated
increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal
retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1,
1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement.
K
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50% after five years up to 100% after 10 years of credited service. Benefits
for Police and Fire Plan members first hired after June 30, 2014, vest on a prorated basis from 50% after
10 years up to 100% after 20 years of credited service. The annuity accrual rate is 3% of average salary
for each year of service. For Police and Fire Plan members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the postretirement
increase was fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36
months as of the June 30 before the effective date of the increase will receive the full increase. For
recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June
30 before the effective date of the increase will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
General Employees Plan Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2020 and the City was required to contribute 7.5% for Coordinated Plan members. The City's
contributions to the General Employees Fund for the year ended December 31, 2020, were $539,417.
The City's contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Police and Fire member's contribution rates increased from 11.3% of pay to 11.8% and employer rates
increased from 16.95% to 17.7% on January 1, 2020. The City's contributions to the Police and Fire
Fund for the year ended December 31, 2020, were $998,722. The City's contributions were equal to the
required contributions as set by state statute.
65
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2020, the City reported a liability of $5,797,607 for its proportionate share of the
General Employees Fund's net pension liability. The City's net pension liability reflected a reduction due
to the State of Minnesota's contribution of $16 million. The State of Minnesota is considered a non -
employer contributing entity and the State's contribution meets the definition of a special funding
situation. The State of Minnesota's proportionate share of the net pension liability associated with the
City totaled $178,810. The net pension liability was measured as of June 30, 2020, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The City'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, 2019,
through June 30, 2020, relative to the total employer contributions received from all of PERA's
participating employers. The City's proportionate share was 0.0967% at the end of the measurement
period and 0.0926% for the beginning of the period.
City's proportionate share of the net pension liability
$ 5,797,607
State of Minnesota's proportionate share of the net pension
liability associated with the City 178,810
Total
$ 5,976,417
For the year ended December 31, 2020, the City recognized pension expense of $412,653 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $15,562 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.
.:
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2020, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources related to pensions from the following
sources:
Differences between expected and actual economic experience
Changes in actuarial assumptions
Net collective difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA subsequent
to the measurement date
Total
Deferred
Outflows of
Resources
$ 50,643
126,877
245,021
269,709
Deferred
Inflows of
Resources
$ 21,934
210,509
30,512
$ 692,250 $ 262,955
The $269,709 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, 2021. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2021
2022
2023
2024
Total
Pension
Expense
Amount
$ (186,281)
39,263
166,531
140,073
$ 159,586
67
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2020, the City reported a liability of $6,247,059 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2020,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City'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, 2019, through June 30, 2020, relative to the total employer contributions received from all
of PERA's participating employers. At June 30, 2020, the City's proportionate share was 0.4772% at the
end of the measurement period and 0.4716% for the beginning of the period.
The State of Minnesota also contributed $13.5 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the
definition of a special funding situation and $9 million in fire state aid that does not meet the definition
of a special funding situation. The $4.5 million direct state aid was paid on October 1, 2019. Thereafter,
by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will continue until the fund
is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is
90% funded, whichever occurs later.
As a result, the State of Minnesota is included as a non -employer contributing entity in the Police and
Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by
Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct
state aid. Police and Fire Plan employers need to recognize their proportionate share of the State of
Minnesota's pension expense (and grant revenue) under GASB 68 special funding situation accounting
and financial reporting requirements. For the year ended December 31, 2020, the City recognized
pension expense of $959,111 for its proportionate share of the Police and Fire Plan's pension expense.
Included in this amount, the City recognized $45,585 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota's contribution of $4.5 million to the Police and Fire Fund.
The State of Minnesota is not included as a non -employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also recognized
$148,169 for the year ended December 31, 2020, as revenue and an offsetting reduction of the net
pension liability for its proportionate share of the State of Minnesota's on -behalf contributions to the
Police and Fire Fund.
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2020, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the sources shown
below.
Differences between expected and actual economic
experience
Changes in actuarial assumptions
Net collective difference between projected and
actual investment earnings
Change in proportion
Contributions paid to PERA subsequent to the measurement
date
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
$ 270,459
$ 278,543
1,965,676
3,617,477
249,875
-
302,093
93,640
430,449 -
$ 3,218,552 $ 3,989,660
The $430,449 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, 2021. Other amounts reported as deferred outflows and inflows
of resources related to pensions from the following sources:
Year Ending
December 31,
2021
2022
2023
2024
2025
Total
Pension
Expense
Amount
$ (317,794)
(1,556,632)
352,207
306,297
14,365
$ (1,201,557)
•'
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions
The total pension liability in the June 30, 2020, actuarial valuation was determined using an individual
entry -age normal actuarial cost method and the following actuarial assumptions:
General Employees Fund Police and Fire Fund
Inflation 2.25 % Per Year 2.50 % Per year
Salary increase 3.00 % Per Year 3.25 % Per year
Investment rate of return 7.50 % 7.50 %
Salary increases were based on a service -related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as
appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit increases after
retirement for retirees are assumed to be 1.25% per year for the General Employees Plan and 1.0% per
year for the Police and Fire Plan.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the General Employees Plan was
completed in 2019. The assumption changes were adopted by the Board and became effective with the
July 1, 2020, actuarial valuation. The most recent four-year experience study for Police and Fire Plan
was completed in 2020. The recommended assumptions for that plan was adopted by the Board and will
be effective with the July 1, 2021, actual valuation if approved by the Legislature.
The following changes in actuarial assumptions occurred in 2020:
General Employees Fund
Changes in Actuarial Assumptions:
• The price inflation assumption was decreased from 2.5% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.0%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
70
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
General Employees Fund (Continued)
Changes in Actuarial Assumptions: (Continued)
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint and Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
Police and Fire Fund
Changes in Actuarial Assumptions:
• The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions:
• There have been no changes since the prior valuation.
71
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Assumptions (Continued)
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 table on the following
page.
Asset Class
Long -Term
Target Expected Real
Allocation Rate of Return
Domestic stocks
35.5 %
5.10 %
International stocks
17.5
5.30
Bonds (fixed income)
20.0
0.75
Alternative assets (private markets)
25.0
5.90
Cash
2.0
0.00
Total
100 %
F. Discount Rate
The discount rate used to measure the total pension liability in 2020 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from Plan members and employers
will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions
of the General Employees Fund and the Police and Fire Fund were projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
72
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
G. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
City's proportionate share of
the General Employees Fund
net pension liability
City's proportionate share of
the Police and Fire Fund
1 % Decrease in 1 % Increase in
Discount Rate Discount Rate Discount Rate
(6.5%) (7.5%) (8.5%)
$ 9,291,553
1 % Decrease in
Discount Rate
$ 5,797,607
Discount Rate
$ 2,915,382
1 % Increase in
Discount Rate
(6.5%) (7.5%) (8.5%)
net pension liability $ 12,493,941 $ 6,247,059 $ 1,078,859
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 on the Internet at www.mnpera.org.
Public Employees Defined Contribution Plan (Defined Contribution Plan)
Three council members of the City of Cottage Grove are covered by the Defined Contribution Plan, a
multiple -employer deferred compensation plan administered by PERA. The Defined Contribution Plan
is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on
behalf of employees are tax deferred until time of withdrawal.
73
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued)
The defined contribution plan consists of individual accounts paying a lump -sum benefit. Plan benefits
depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses;
therefore, there is no future liability to the City. Minnesota Statutes, Chapter 353D.03, specifies plan
provisions, including the employee and employer contribution rates for those qualified personnel who
elect to participate. An eligible elected official who decides to participate contributes 5% of salary which
is matched by the elected official's employer. For ambulance service personnel, employer contributions
are determined by the employer, and for salaried employees must be a fixed percentage of salary.
Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty.
Employees who are paid for their services may elect to make member contributions in an amount not to
exceed the employer share. Employer and employee contributions are combined and used to purchase
shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For
administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1%
(.0025%) of the assets in each member's account annually.
Pension expense for the year is equal to the contributions made. Total contributions made by the City
during fiscal year 2020 were:
Contribution Amount
Employee Employer
$ 1,360 $ 1,360
Percentage of Covered Payroll
Employee Employer
5% 5%
Defined Benefit Pension Plan — Volunteer Fire Relief Association
Required
Rate
5%
A. Plan Description
The City of Cottage Grove participates in the Statewide Volunteer Firefighter Retirement Plan
(Volunteer Firefighter Plan accounted for in the Volunteer Firefighter Fund), an agent multiple -
employer lump -sum defined benefit pension plan administered by the Public Employees Retirement
Association of Minnesota (PERA). The Volunteer Firefighter Plan covers volunteer firefighters of
municipal fire departments that have elected to join the plan. As of December 31, 2020, the plan covered
41 active firefighters and 21 vested terminated firefighters whose pension benefits are deferred. The plan
is established and administered in accordance with Minnesota Statutes, Chapter 353G.
B. Benefits Provided
The Volunteer Firefighter Plan provides retirement, death, and supplemental benefits to covered
firefighters and survivors. Benefits are paid based on the number of years of service multiplied by a
benefit level approved by the City of Cottage Grove. Members are eligible for a lump -sum retirement
benefit at 50 years of age with five years of service. Plan provisions include a pro -rated vesting schedule
that increases from 5 years at 40% through 20 years at 100%.
74
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan — Volunteer Fire Relief Association (Continued)
C. Contributions
The Volunteer Firefighter Plan is funded by fire state aid, investment earnings and, if necessary,
employer contributions as specified in Minnesota Statutes. The State of Minnesota contributed $225,637
in fire state aid to the fund for the year ended December 31, 2020. Required employer contributions are
calculated annually based on statutory provisions. The City of Cottage Grove's statutorily -required
contributions to the Volunteer Firefighter Fund for the year ended December 31, 2020, were $0.
D. Pension Costs
At December 31, 2020, the City of Cottage Grove reported a net pension asset of $1,989,839 for the
Volunteer Firefighter Fund. The net pension asset was measured as of December 31, 2020. The total
pension liability used to calculate the net pension asset in accordance with GASB 68 was determined by
PERA applying an actuarial formula to specific census data certified by the fire department as of
December 31, 2020. The following table presents the changes in net pension liability during the year.
Increase (Decrease)
Net Pension
Total Pension Plan Fiduciary Net Liability (Asset)
Liability (a) Position (b) (a) - (b)
Balances at January 1, 2020 $ 1,834,334 $ 3,207,149 $ (1,372,815)
Changes for the year
Service cost
108,515
-
108,515
Interest cost
111,351
-
111,351
Actuarial expenses (gains)/losses
(160,794)
-
(160,794)
State contributions
-
225,637
(225,637)
Projected investment return
-
192,429
(192,429)
Asset (gain)/loss
-
260,048
(260,048)
Benefit payments
(174,000)
(174,000)
-
Administrative expense
-
(2,018)
2,018
Net changes
(114,928)
502,096
(617,024)
Balances at December 31, 2020 $
1,719,406 $
3,709,245 $
(1,989,839)
There were no benefit provision changes during the measurement period.
75
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan — Volunteer Fire Relief Association (Continued)
D. Pension Costs (Continued)
For the year ended December 31, 2020 the City of Cottage Grove recognized pension expense of a
negative $54,714.
At December 31, 2020, the City of Cottage Grove reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Actuarial experience gain/loss $ - $ 128,635
Difference between projected and actual investment earnings - 208,038
Total $ - $ 336,673
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ending
December 31,
2021
2022
2023
2024
Total
Pension
Expense
Amount
$ (84,169)
(84,169)
(84,169)
(84,166)
$ (336,673)
E. Actuarial Assumptions
The total pension liability at December 31, 2020, was determined using the entry age normal actuarial
cost method and the following actuarial assumptions:
• Retirement eligibility at the later of age 50 or 20 years of service
• Investment rate of return of 6.0%
• Inflation rate of 3.0%
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan — Volunteer Fire Relief Association (Continued)
F. Discount Rate
The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows
used to determine the discount rate assumed that contributions to the Volunteer Firefighter Fund will be
made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
G. Pension Liability Sensitivity
The following presents the net pension liability for the Volunteer Firefighter Fund, calculated using the
assumed discount rate, as well as what the City of Cottage Grove's net pension asset would be if it were
calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current
discount rate:
1 % Decrease in Current 1 % Increase in
Discount Rate Discount Rate Discount Rate
(5.00%) (6.00%) (7.00%)
City's net pension liability (asset) $ (1,909,037) $ (1,989,839) $ (2,066,840)
H. Plan Investments Investment Policy
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota
Constitution to invest all state funds. Its membership as specified in the Constitution is comprised of the
governor (who is designated as chair of the board), state auditor, secretary of state and state attorney
general.
All investments undertaken by the SBI are governed by the prudent person rule and other standards
codified in Minnesota Statutes, Chapter I IA and Chapter 353G.
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the
Investment Advisory Council, establishes investment policy for all funds under its control. These
investments policies are tailored to the specific needs of each fund and specify investment objectives,
risk tolerance, asset allocation, investment management structure and specific performance standards.
Studies guide the on -going management of the funds and are updated periodically.
I. Asset Allocation
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset allocation
for the Volunteer Firefighter Plan that includes allocations to domestic equity, international equity,
bonds and cash equivalents. The long-term target asset allocation and long-term expected real rate of
return on the following page:
77
City of Cottage Grove
Notes to Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan — Volunteer Fire Relief Association (Continued)
I. Asset Allocation (Continued)
Asset Class
Domestic equity
International equity
Bonds
Cash
Expected
Return
Target Allocation of Return
35 % 5.10 %
15 5.90
45 0.75
5 0.00
Total 100 %
The 6% long-term expected rate of return on pension plan investments was determined using a building
block method. Best estimates for expected future real rates of return (expected returns, net of inflation)
were developed for each asset class using both long-term historical returns and long-term capital market
expectations from several investment management and consulting organizations. The asset class
estimates, and the target allocations were then combined to produce a geometric, long-term expected
real rate of return for the portfolio. Inflation expectations were applied to derive the nominal rate of
return for the portfolio.
J. Description of significant investment policy changes during the year
The SBI made no significant changes to their investment policy during fiscal year 2020 for the
Volunteer Firefighter Fund.
K. Pension Plan Fiduciary Net Position
Detailed information about the Volunteer Firefighter Fund's fiduciary net position as of June 30, 2020, 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.
City of Cottage Grove
Notes to Financial Statements
NOTE 6 — INTERFUND LOANS AND TRANSFERS
The City uses interfund loans when possible, to finance construction activities to avoid costs associated
with issuing bonds. These loans are for this purpose. The interfund loan receivable and payable balances
at December 31, 2020, were:
Fund
Major Governmental Funds
Municipal Building Capital Projects Fund
Nonmajor Governmental Funds
Major Business -Type Funds
Water Operating Enterprise Fund
Sewer Operating Enterprise Fund
Total
Receivable Payable
$ - $ 2,860,000
661,279 661,279
27,500 -
2,832,500 -
$ 3,521,279 $ 3,521,279
Interfund receivable and payable balances are used for temporary cash deficits. Interfund receivable and
payable balances at December 31, 2020, are as follows:
Fund
Major Government Funds
Closed Debt Fund
Future Projects Fund
MSA Construction Fund
Developer Petitioned Projects Fund
Municipal Building Fund
Nonmajor Governmental Funds
Total
Receivable Payable
$ 1,282,215 $ -
2,223,771 -
- 1,248,869
- 2,223,771
- 33,346
839,128 839,128
$ 4,345,114 $ 4,345,114
Interfund transfers during the year ended December 31, 2020, were as follows:
Transfers In
Municipal
MSA
Nonmajor
General
Building
Construction
Closed Debt
Future Projects
Governmental
Fund(100)
Fund(525)
(520)
Fund 300
Funds(510,810)
Funds
Total
Transfers Out
General Fund (100)
$ -
$ 202,607
$ -
$ 472,750
$ -
$ 1,899,139
$ 2,574,496
Nonmajor Governmental Funds
41,300
-
625,480
-
129,973
895,870
1,692,623
Street Light(630)
48,650
-
-
-
48,650
Cottage Grove EMS (660)
94,500
-
-
94,500
Water Operating (610)
186,000
49,986
152,350
388,336
Sewer Operating (620)
192,600
26,408
76,948
295,956
Total
$ 563,050
S 202,607
$ 701,874
S 472,750
$ 359,271
$ 2,795,009
$ 5,094,561
79
City of Cottage Grove
Notes to Financial Statements
NOTE 6 — INTERFUND LOANS AND TRANSFERS (CONTINUED)
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
services provided by another fund. All transfers in 2020 were considered to be routine in nature as they
were related to services provided to another fund, fund balance policy transfers, to cover a portion of the
loss generated from the HERO Center operations, funding construction projects, and moving funds
received in a previous year from the sale of land to the Park Trust Fund where it will be used for future
park improvements.
NOTE 7 — TAX INCREMENT FINANCING
The City has entered into one Tax Increment Financing agreement which meets the criteria for
disclosure under GASB Statement No. 77 — Tax Abatement Disclosures. The City's authority to enter
into this agreement comes from Minnesota Statute 469. The City entered into this agreement for
economic development.
Under the agreement, the City and developer agree on an amount of development costs to be reimbursed
to the developer by the City through tax revenues from the additional taxable value of the property
generated by the development (tax increment). A "pay as you go" note is established for this amount, on
which the City makes payments for a fixed period with available tax increment revenue after deducting
certain administrative costs.
During the year ended December 31, 2020, the City generated $1,321,659 in tax increment revenue and
made $293,232 in payments to developers.
TIF District #1-12 was established in 2001 for redevelopment of certain blighted properties into
retail, commercial, and senior housing developments. An agreement with PHS/Cottage Grove
Inc. called for up to $2.8 million to be reimbursed through tax increment over a ten-year period.
During the year ended December 31, 2020, the district generated $286,029 of tax increment and
$186,249 in payments on the pay as you go note were made. The balance due on the note at year
end was $885,000.
NOTE 8 — DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2020, as follows:
Fund
Major Governmental Funds
Amount The deficit fund balances will be resolved through
Municipal Building Fund (525)
$ 2,910,591
MSA Construction (520)
3,538,824
Developer Petitioned Projects
2,464,009
Nonmajor Governmental Funds
Ice Arena (250)
594,108
HERO Center Operations (290)
59,801
Ice Arena Construction (526)
33,570
2019B Equipment Certificates (305)
23,354
Future tax levies
Future MSA revenues
Future special assessments
Future excess revenues and transfers from other City resources
Future excess revenues
Future bond proceeds
Future tax levies
City of Cottage Grove
Notes to Financial Statements
NOTE 9 — 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 and natural disasters for which the City carries commercial insurance policies. The
City retains risk for the deductible portions of the insurance policies. The amount of these deductibles is
considered immaterial to the financial statements.
There were no significant reductions in insurance from the previous year or settlements more than
insurance coverage for any of the past three fiscal years.
Workers compensation coverage is provided through a pooled self-insurance program through the
League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT.
The City is subject to supplemental assessments as deemed necessary by the LMCIT. The LMCIT
reinsures through Worker's Compensation Reinsurance Association (WCRA) as required by law. For
workers compensation, the City is subject to a $25,000 medical expense deductible. The City's
premiums are determined after loss experience is known. The amount of premium adjustment, if any, is
considered immaterial and not recorded until received or paid.
Property and casualty insurance coverage is provided through a pooled self-insurance program through
LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental
assessments as deemed necessary by the LMCIT.
The City established the Self Insurance Fund in 1986 to account for and finance its uninsured risks of
loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to
employees; and natural disasters. Under this program, the Self Insurance Fund provides coverage for
losses up to $50,000 for each claim (annual aggregate is $100,000). The City purchases commercial
insurance for claims more than coverage provided by the Fund and for any risk of loss not covered.
Settled claims have not exceeded the commercial coverage in any of the past three fiscal years.
This fund is presented as an internal service fund type. All funds of the City participate in the program
and make payments to the Self Insurance Fund based on historical cost information. The claims liability
of $325,646 reported in the Fund at December 31, 2020, is based on the requirements of GASB
Statement No. 10, which requires that a liability for claims be reported if information prior to the
issuance of the financial statements indicates that it is probable that a liability has been incurred at the
date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the
fund's claims liability amounts were as follows:
Year
Beginning
of Year
Liability
Claims and
Changes in
Estimates
End
Claim of Year
Payments Liability
2020 $ 201,608
$ 346,696
$ (222,658) $
325,646
2019 170,124
200,669
(169,185)
201,608
2018 171,752
231,966
(233,594)
170,124
City of Cottage Grove
Notes to Financial Statements
NOTE 9 — CONTIGENCIES
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 are 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, 2020.
D. Tax Increments
The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund.
NOTE 10 — FUND BALANCES
At December 31, 2020, the City had various fund balances through legal restriction and City Council
authorization. Fund balance appropriations at December 31, 2020, are shown on the various balance
sheets as segregations of the fund balance. The fund balance classifications for governmental funds are
as follows:
Fund Balances
Nonspendable
Prepaid items
Inventory
Restricted
Debt retirement
Pandemic relief
Forfeiture and seizure
Tax increment purposes
Committed
Golf course operations
Recycling program
Storm water activities
Assigned
Compensated absences
Future budgets
School bus safety
Debt retirement
Future pavement management
Tree mitigation
Future roads and trails
Equipment replacement
Street sealcoating
Economic decvelopment
Capital improvements
Unassigned
Total fund balances
Major Funds
Municipal MSA Closed Future Water Connection Developer
General Building Construction Debt Projects and Area Petitioned
Fund(100) Fund(525) (520) Fund(300) (510,810) Fund(575) Projects
Nonmajor
Governmental
Funds Total
$ 27,042 $ $ $ $ $ $ $ 33,818 $ 60,860
- - - - - - - 28,265 28,265
- - - - - - - 4,121,049 4,121,049
1,500 1,500
- - - - - - - 89,411 89,411
757,921 757,921
13,356 13,356
73,844 73,844
2,049,769 2,049,769
1,001,006 - - -
-
- -
-
1,001,006
762,000
762,000
5,600 - - -
-
- -
-
5,600
- 2,678,622
-
2,678,622
- - - -
30,223
- -
-
30,223
540,801
540,801
- - - -
41,992
- -
-
41,992
-
1,317,210
1,317,210
1,067,416
1,067,416
4,889,284
4,889,284
1,461,834
9,428,194
10,890,028
10,479,728 (2,910,591) (3,538,824)
(2,464,009)
(729,811)
836,493
$12,275,376 $ (2,910,591) $ (3,538,824) $ 2,678,622
$ 613,016
$ 1,461,834 $ (2,464,009)
$23,141,226
$31,256,650
City of Cottage Grove
Notes to Financial Statements
NOTE II — POST EMPLOYMENT HEALTH CARE PLAN
A. Plan Description
The City provides health benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b
through a single -employer defined benefit OPEB plan. Pursuant to the provisions of the plan, retirees are
required to pay the total premium cost. No assets are accumulated in a trust.
B. Benefits Provided
Active employees, who retire from the City when over age 50 and with 20 years of service, may
continue coverage with respect to both themselves and their eligible dependent(s) under the City's health
benefits program until age 65.
C. Contributions
Retirees contribute to the health care plan at the same rate as City employees. This results in the retirees
receiving an implicit rate subsidy. Contribution requirements are established by the City, based on the
contract terms with Medica. The required contributions are based on projected pay-as-you-go financing
requirements. For the year 2020, the City contributed $29,882 to the plan.
D. Members
As of January 1, 2019, the following were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 7
Active employees 135
Total 142
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2019, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
Discount rate 2.12%
Inflation 2.50%
Healthcare cost trend increases 6.50% initially decreasing
to an ultimate rate of 4.0% by 2031
Mortality assumption RP 2014 employee mortality table, adjusted for white collar
and mortality improvements
RN
City of Cottage Grove
Notes to Financial Statements
NOTE II — POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
E. Actuarial Assumptions (Continued)
The actuarial assumptions used in the January 1, 2019, valuation was based on the results of an actuarial
experience study dated June 30, 2015, for PERA's General Employees Retirement Plan and dated
August 30, 2016, for PERA's PEPFF Plan.
The discount rate used to measure the total OPEB liability was 2.12% based on the Bond Buyer 20-
Bond Obligation Index.
F. Total OPEB Liability
The City's total OPEB liability of $374,505 was measured as of December 31, 2020, and was
determined by an actuarial valuation as of January 1, 2019.
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balance at January 1, 2020
$ 368,440
Changes for the year
Service cost
17,939
Interest
10,179
Change in assumption
13,860
Difference between expected and
actual experience
(6,031)
Benefit payments
(29,882)
Net changes
6,065
Balance at December 31, 2020
$ 374,505
Changes of assumptions and other inputs reflect a change in the discount rate from 2.74% in 2019 to
2.12% in 2020 to reflect recent rate changes in the Bond Buyer 20-Bond General Obligation Index.
The general inflation rate was changed to the 2.50% used in the June 30, 2020 GERF and June 30, 2020,
PEPFF actuarial valuations.
City of Cottage Grove
Notes to Financial Statements
NOTE II — POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability (Continued)
Changes of assumptions also reflect a change to 25.0% of GERF employees are assumed to elect
coverage at retirement, an increase from 20.0% based on recent experience.
The General Fund and Water Operating, Sewer Operating, Street Light, Cottage Grove EMS and
Internal Service Funds typically liquidate the liability related to OPEB.
G. OPEB Liability Sensitivity
The following presents the City's total OPEB liability calculated using the discount rate of 2.12% as well
as the liability measured using 1 % lower and 1 % higher than the current discount rate.
Total OPEB Liability
1 % decrease Current 1 % increase
(1.12%)
397,916
(2.12%)
$ 374,505
(3.12%)
$ 352,485
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1 % lower and 1 % higher
than the current healthcare cost trend rates.
1 % decrease
343,410
Total OPEB Liability
Current
$ 374,505
1 % increase
$ 411,146
H. OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2020, the City recognized OPEB expense of $30,900. At
December 31, 2020, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience $ - $ 11,604
Changes of assumptions and other inputs 47,082 11,823
Total $ 47,082 $ 23,427
City of Cottage Grove
Notes to Financial Statements
NOTE 11 — POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
H. OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources
Related to OPEB (Continued)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Year Ending
December 31,
Total
2021
$ 2,782
2022
2,782
2023
2,782
2024
2,782
2025
2,782
Thereafter
9,745
Total
$ 23,655
NOTE 12 — OPERATING LEASES
The City leases land for the golf course under an operating lease. The monthly lease payments equal $1
per month for the remaining term of the lease agreement. The lease was amended in 2015 to add a first
extension option to 2020. In 2015, $60 was paid under this lease arrangement for the entire five-year
extension.
The City entered into two operating leases during 2007 for the leasing of ice time for the Ice Arena with
Independent School District No. 833 and the Cottage Grove Athletic Association. The lease payments
began in 2008 when the new ice arena expansion project opened. The future minimum annual lease
payments that the City will receive are as follows:
Independent
Year Ended
School District
December 31
No. 833
2021
$ 104,250
2022
104,250
2023
104,250
2024
104,250
2025
104,250
2026-2029
417,000
Total
Cottage Grove
Athletic
Association
$ 400,000
400,000
400,000
400,000
400,000
1,600,000
$ 938,250 $ 3,600,000
::
City of Cottage Grove
Notes to Financial Statements
NOTE 13 — COMMITTED CONTRACTS
At December 31, 2020, the City had commitments of $1,994,847 for uncompleted construction
contracts.
NOTE 14 — CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Revenue Bonds to provide financial assistance to private sector entities
for the acquisition and construction of industrial and commercial facilities which are deemed to be in the
public interest. The bonds are secured by the property financed and are payable solely from payments 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 issue. The City is not obligated in any manner
for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. As of December 31, 2020, a series of Industrial Revenue Bonds
were outstanding.
Original Issue 12/31/2020
Bond Issue Date Amount Balance
Maturity Date
Commercial Development Revenue Note - ESR, Inc.
11/22/05
$ 76,500
$ 18,786
11/22/25
Commercial Development Revenue Note - ESR, Inc.
05/19/05
853,000
240,356
12/19/25
Variable Rate Revenue Bonds - Allina Health Syystem
11/01/09
6,100,000
6,100,000
11/15/22
Multifamily Housing Note - Legends of Cottage Grove
10/07/16
18,422,000
18,047,127
05/01/34
Multifamily Housing Note - Legends of Cottage Grove
10/07/16
6,328,000
6,211,428
05/01/34
Total
$ 31,779,500
$ 30,617,697
NOTE 15 — NEW STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 87, Leases establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and
a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing
the relevance and consistency of information about governments' leasing activities. This statement will
be effective for the year ending December 31, 2022.
GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period
enhances the relevance and comparability of information about capital assets and the cost of borrowing
for a reporting period and simplifies accounting for interest cost incurred before the end of a
construction period. This statement will be effective for the year ending December 31, 2021.
%ere p(I d e WO
Cottage
Grove
,,perity Meet
REQUIRED SUPPLEMENTARY INFORMATION
:'
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
2020
2019
Variance with
Budgeted Amounts
Actual
Final Budget -
Original
Final
Amounts
Over (Under)
Actual
Revenues
General property taxes
$ 14,201,900 $
14,201,900 $
14,236,904
S 35,004
$ 13,791,739
Special assessments
3,000
3,000
4,412
1,412
4,520
Licenses and permits
General government
73,200
73,200
57,827
(15,373)
80,025
Community development
1,460,000
2,542,350
2,379,978
(162,372)
2,125,320
Engineering
33,000
53,000
23,368
(29,632)
54,606
Public safety
21,000
21,000
19,760
(1,240)
17,691
Total licenses and permits
1,587,200
2,689,550
2,480,933
(208,617)
2,277,642
Intergovernmental revenues
Federal grants and aids
22,000
102,700
123,627
20,927
52,235
State grants and aids
Local government aid
87,500
87,500
87,494
(6)
87,494
Market value homestead credit
-
-
4,943
4,943
4,493
MSA maintenance - public works
44,300
44,000
42,390
(1,610)
43,245
PERA Aid
21,450
-
-
-
21,448
Fire relief aid - public safety
-
-
220,637
220,637
-
Police relief aid - public safety
350,000
385,000
385,130
130
378,594
Other - public safety
24,000
50,000
57,527
7,527
75,423
Other - planning
-
16,000
16,000
-
-
Local
SRO program - public safety
180,000
180,000
122,196
(57,804)
180,508
Other - public safety
10,000
30,000
28,673
(1,327)
15,810
Other - public works
-
-
19,603
19,603
18,419
Other - culture and recreation
18,500
-
8,894
Total intergovernmental
757,750
895,200
1,108,220
213,020
886,563
Charges for services
Investment charge - general government
15,000
15,000
22,253
7,253
38,368
Other - general government
100
100
471
371
412
Other - community development
65,000
200,700
210,736
10,036
298,710
Other - engineering
350,000
540,700
927,043
386,343
612,630
Other - public safety
50,200
43,255
32,685
(10,570)
56,326
Other - public works
34,200
15,500
12,430
(3,070)
24,838
Other - culture and recreation
192,400
25,200
38,169
12,969
176,583
Total charges for services
706,900
840,455
1,243,787
403,332
1,207,867
Fines and forfeitures - public safety
150,000
150,000
119,092
(30,908)
158,093
Investment earnings
150,000
150,000
148,175
(1,825)
167,958
Donations
General government
-
-
10,872
10,872
14,250
Public safety
13,000
16,323
3,323
-
Public works
-
-
2,000
2,000
-
Culture and recreation
2,000
2,000
1,550
(450)
2,200
Total donations
2,000
15,000
30,745
15,745
16,450
Miscellaneous
General government
125,000
30,000
111,166
81,166
79,171
Public safety
25,000
13,800
24,811
11,011
21,236
Public works
-
5,789
5,789
32,701
Total miscellaneous
150,000
43,800
141,766
97,966
133,108
Total revenues
17,708,750
18,988,905
19,514,034
525,129
18,643,940
KC
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Expenditures
General government
Mayor and city council
Administrative
Finance
Personnel
Assessing services
City clerk/elections
Legal
Community and employee programs
Government buildings
Total general government
Community development
Planning and zoning
Building inspections
Engineering
Total community development
Public safety
Police protection
Fire protection
Emergency preparedness
Animal control
Total public safety
Public works
Public works administration
Streets
Snow and ice control
Street signs/striping
Total public works
Culture and recreation
Forestry
Recreation programs
Parks maintenance
Total culture and recreation
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances
Beginning of year
2020 2019
Budgeted Amounts Variance with
Actual Final Budget -
Original Final Amounts Over (Under) Actual
$ 100,350
$ 100,350
$ 89,501
$ (10,849) $
93,574
671,530
671,530
688,696
17,166
459,749
602,580
600,903
649,834
48,931
580,009
-
-
-
-
177,640
183,750
183,750
191,390
7,640
178,301
63,925
63,925
71,474
7,549
144,687
202,000
202,000
226,955
24,955
210,621
101,620
101,620
106,562
4,942
96,185
548,515
548,515
430,926
(117,589)
482,621
2,474,270
2,472,593
2,455,338
(17,255)
2,423,387
420,635
433,635
456,853
23,218
397,181
823,205
814,372
923,259
108,887
754,593
366,230
365,019
373,724
8,705
334,307
1,610, 070
1,613,026
1,753,836
140,810
1,486, 081
7,215,290
5,979,817
6,210,052
230,235
6,951,130
1,208,505
1,204,513
1,524,417
319,904
1,291,031
78,800
113,800
94,277
(19,523)
71,208
34,100
34,100
28,615
(5,485)
28,608
8,536,695
7,332,230
7,857,361
525,131
8,341,977
441,335
441,335
462,952
21,617
668,007
1,562,945
1,557,049
1,486,484
(70,565)
1,496,249
773,770
703,770
683,844
(19,926)
981,754
225,480
223,958
214,510
(9,448)
241,124
3,003,530
2,926,112
2,847,790
(78,322)
3,387,134
365,905
362,182
304,121
(58,061)
339,879
463,785
331,485
262,313
(69,172)
406,340
1,512,245
1,471,554
1,437,831
(33,723)
1,433,712
2,341,935
2,165,221
2,004,265
(160,956)
2,179,931
17,966,500
16,509,182
16,918,590
409,408
17,818,510
(257,750)
2,479,723
2,595,444
115,721
825,430
557,750 562,750 563,050 300 563,050
(300,000) (1,300,000) (2,574,496) (1,274,496) (942,648)
257,750 (737,250) (2,011,446) (1,274,196) (379,598)
$ $ 1,742,473 583,998 $ (1,158,475)
11,691,378
End of year $ 12,275,376
445,832
11,245,546
$ 11,691,378
91
City of Cottage Grove
Schedule of Changes in Total OPEB Liability
and Related Ratios
Total OPEB Liability
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions
Changes of benefit terms
Benefit payments
Other changes
Net change in total OPEB liability
Beginning of year
End of year
Covered payroll
Total OPEB liability as a percentage of covered payroll
December 31, December 31, December 31,
$ 14,560 $ 16,325 $ 17,939
11,794 15,807 10,179
- (7,934) (6,031)
(14,652) 41,447 13,860
(18,651) (27,782) (29,882)
337,526 330,577 368,440
$ 330,577 $ 368,440 $ 374,505
$ 9,103,225 $ 10,569,669 $ 10,340,116
3.63% 3.49% 3.62%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to required supplementary information. 92
City of Cottage Grove
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
City's
Proportionate
Share of the
State's
Net Pension
City's
City's
City's
Proportionate
Liability and
Proportionate
Proportionate
Proportionate
Share
the State's
Share of the
Plan Fiduciary
Share
Share
(Amount) of
Proportionate
Net Pension
Net Position
(Percentage)
(Amount) of
the Net
Share of the
Liability
as a
of the Net
the Net
Pension
Net Pension
(Asset) as a
Percentage of
For Fiscal
Pension
Pension
Liability
Liability
Percentage of
the Total
Year Ended
Liability
Liability
Associated
Associated
City's Covered
its Covered
Pension
June 30,
(Asset)
(Asset)
with the City
with the City
Payroll
Payroll
Liability
2020
0.0967%
$ 5,797,607
$ 178,810
$ 5,976,417
$ 6,898,173
84.0%
79.06%
2019
0.0926%
5,119,647
159,160
5,278,807
6,555,453
78.1%
80.23%
2018
0.0937%
5,198,092
170,553
5,368,645
6,298,520
82.5%
79.53%
2017
0.0890%
5,681,701
71,469
5,753,170
5,887,025
96.5%
75.90%
2016
0.0878%
7,128,925
43,058
7,171,983
5,447,306
130.9%
68.91%
2015
0.0919%
4,762,735
-
4,762,735
5,401,220
88.2%
78.19%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
City's
Proportion of
the Net
For Fiscal Pension
Year Ended Liability
June 30, (Asset)
Schedule of City's Proportionate Share
of Net Pension Liability
Public Employees Police and Fire Retirement Fund
Last Ten Years
City's
Proportionate
Share of the
State's
Net Pension
Proportionate
Liablility and
Share
the State's
City's
(Amount) of
Proportionate
Proportionate
the Net
Share of the
Share of the
Pension
Net Pension
Net Pension
Liability
Liablility
Liability
Associated
Associated
(Asset)
with the City
with the City
City's
Proportionate
Share of the
Plan Fiduciary
Net Pension
Net Position
Liability
as a
(Asset) as a
Percentage of
Percentage of
the Total
City's Covered its Covered
Pension
Payroll Payroll
Liability
2020
0.4772%
$ 6,247,059
$ 148,169
$ 6,395,228
$ 5,385,172
116.00%
87.19%
2019
0.4716%
4,956,992
N/A
4,956,992
4,864,909
101.89%
89.26%
2018
0.4582%
4,842,702
N/A
4,842,702
4,829,432
100.27%
88.84%
2017
0.4380%
5,913,521
N/A
5,913,521
4,495,914
131.53%
85.43%
2016
0.4450%
17,818,574
N/A
17,818,574
3,867,466
460.73%
63.88%
2015
0.4340%
4,931,256
N/A
4,931,256
3,665,120
134.55%
86.61%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to required supplementary information. 93
%ere p(I d e WO
Cottage
Grove
,,perity Meet
ul
City of Cottage Grove
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contributions
in Relation to
Fiscal Year
Statutorily
the Statutorily
Ending
Required
Required
December 31,
Contribution
Contributions
2020
$ 539,417
$ 539,417
2019
508,963
508,963
2018
482,521
482,521
2017
458,971
458,971
2016
424,202
424,202
2015
403,964
403,964
Contributions
Contribution
as a Percentage
Deficiency City's Covered
of Covered
(Excess) Payroll
Payroll
$ - $ 7,192,227
7.50%
- 6,786,173
7.50%
- 6,433,613
7.50%
- 6,119,613
7.50%
- 5,656,027
7.50%
- 5,386,187
7.50%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Last Ten Years
Contributions
in Relation to
Fiscal Year
Statutorily
the Statutorily
Ending
Required
Required
December 31,
Contribution
Contributions
2020
$ 998,722
$ 998,722
2019
976,911
976,911
2018
803,145
803,145
2017
778,070
778,070
2016
718,936
718,936
2015
664,300
664,300
Contributions
Contribution
as a Percentage
Deficiency City's Covered
of Covered
(Excess) Payroll
Payroll
$ - $ 5,642,497
17.70%
- 5,763,487
16.95%
- 4,957,685
16.20%
- 4,802,901
16.20%
- 4,437,877
16.20%
- 4,100,617
16.20%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to required supplementary information. 95
City of Cottage Grove
Schedule of Changes in Net Pension Liability
and Related Ratios - Fire Relief Association
Total pension liability (TPL)
Service cost
Interest
Differences between expected and actual experience
Changes of assumptions
Changes of benefit terms
Benefit payments, including refunds or member contributions
Net change in total pension liability
Beginning of year
End of year
Plan fiduciary net pension (FNP)
Contributions - employer
State contributions
Net investment income
Benefit payments, including refunds of member contributions
Administrative expense
Other
Net change in plan fiduciary net position
Beginning of year
End of year
Net pension liability (NPL)
Plan fiduciary net position as a percentage of the total
pension liability
Covered payroll
Net pension liability as a percentage of covered payroll
Measurement Date
December 31, December 31, December 31,
2014 2015 2016
$
77,691
$
79,827
$
109,062
85,148
88,550
85,750
-
77,611
(130,240)
-
139,930
-
(84,321)
(140,973)
(295,760)
78,518
244,945
(231,188)
1,274,449
1,352,967
1,597,912
$
1,352,967
$
1,597,912
$
1,366,724
$
5,155
$
5,329
$
5,265
177,804
191,183
195,271
98,130
(117,497)
146,660
(84,321)
(140,973)
(295,760)
(11,193)
(15,165)
(12,139)
(23,403)
-
210
162,172
(77,123)
39,507
2,242,564
2,404,736
2,327,613
$
2,404,736
$
2,327,613
$
2,367,120
$ (1,051,769)
$ (729,701)
$ (1,000,396)
177.7%
145.7%
173.2%
n/a
n/a
n/a
n/a
n/a
n/a
The City implemented the provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December 31,
2015. The schedules within the Required Supplementary Information section require a ten-year presentation, but does not require
retroactive reporting. Information prior to 2014 is not available. Additional years will be reported as they become available.
See notes to required supplementary information. 96
Measurement Date
December 31, December 31, December 31, December 31,
$
118,915
$
102,569
$
97,985
$
108,515
100,267
117,070
115,532
111,351
329,484
(12,862)
(45,681)
(160,794)
-
(133,560)
(322,109)
(174,000)
548,666
73,217
(154,273)
(114,928)
1,366,724
1,915,390
1,988,607
1,834,334
$
1,915,390
$
1,988,607
$
1,834,334
$
1,719,406
$
2,081
$
-
$
-
$
-
192,139
198,977
209,430
225,637
316,265
(113,085)
510,329
452,477
-
(133,560)
(322,109)
(174,000)
(12,334)
(3,709)
(2,155)
(2,018)
(2,319)
-
79
-
495,832
(51,377)
395,574
502,096
2,367,120
2,862,952
2,811,575
3,207,149
$
2,862,952
$
2,811,575
$
3,207,149
$
3,709,245
$ (947,562)
$ (822,968)
$ (1,372,815)
$ (1,989,839)
149.5%
141.4%
174.8%
215.7%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
97
City of Cottage Grove
Schedule of City and Non -Employer Entity Contributions -
Fire Relief Association
December 31, December 31, December 31, December 31,
2014 2015 2016 2017
Employer
Statutorily determined contribution (SDC) $ - $ - $ - $ -
Contribution in relation to the SDC 5,155 5,329 5,265 2,081
Contribution deficiency (excess) $ (5,155) $ (5,329) $ (5,265) $ (2,081)
Non -employer
2% state aid
$ 177,804 $
191,183
$ 195,271
$ 192,139
Covered payroll
n/a
n/a
n/a
n/a
Contributions as a percentage of covered payroll
n/a
n/a
n/a
n/a
The City implemented the provisions of Governmental Accounting Standards Board Statement No. 68 for the year ended December 31,
2015. The schedules within the Required Supplementary Information section require a ten-year presentation, but does not require
retroactive reporting. Information prior to 2014 is not available. Additional years will be reported as they become available.
See notes to required supplementary information. 98
December 31, December 31, December 31,
$ 198,977 $ 209,430 $ 225,637
n/a n/a n/a
n/a n/a n/a
oa
City of Cottage Grove
Notes to Required Supplementary Information
GENERAL EMPLOYEES FUND
2020 Changes
Changes in Actuarial Assumptions
• The price inflation assumption was decreased from 2.5% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.0%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019,
experience study. The net effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of
90 and early retirements.
• Assumed rates of termination were changed as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint and Survivor
option changed from 35% to 45%. The assumed number of married female new retires
electing the 100% Joint and Survivor option changed from 15% to 30%. The corresponding
number of married new retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions
• Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2015 to MP-2017.
100
City of Cottage Grove
Notes to Required Supplementary Information
GENERAL EMPLOYEES FUND (CONTINUED)
2018 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per
year thereafter to 1.25% per year.
Changes in Plan Provisions
• The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
• Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
• Contribution stabilizer provisions were repealed.
• Postretirement benefit increases were changed from 1.00% per year with a provision to
increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security
Cost of Living Adjustment, not less than 1.00% and not more than 1.50%, beginning
January 1, 2019.
• For retirements on or after January 1, 2024, the first benefit increase is delayed until the
retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit
recipients, or survivors.
• Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
• The CSA loads were changed from 0.8% for active members and 60% for vested and non -
vested deferred members. The revised CSA loads are now 0.0% for active member liability,
15% for vested deferred member liability and 3% for non -vested deferred member liability.
• The assumed post -retirement benefit increase rate was changed from 1.0% per year for all
years to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
• The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000
in 2017 and 2018, and $6,000,000 thereafter.
• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
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%.
101
City of Cottage Grove
Notes to Required Supplementary Information
GENERAL EMPLOYEES FUND (CONTINUED)
2016 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
• The assumed post -retirement benefit increase rate was changed from 1.0% per year through
2030 and 2.5% per year thereafter to 1.0% per year through 2035 and 2.5% per year
thereafter.
Changes in Plan Provisions
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the
General Employees Fund, which increased the total pension liability by $1.1 billion and
increased the fiduciary plan net position by $892 million. Upon consolidation, state and
employer contributions were revised; the State's contribution of $6.0 million, which meets the
special funding situation definition, was due September 2015.
102
City of Cottage Grove
Notes to Required Supplementary Information
POLICE AND FIRE FUND
2020 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
• Postretirement benefit increases were changed to 1.00% for all years, with no trigger.
• An end date of July 1, 2048, was added to the existing $9.0 million state contribution.
• New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
• Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019,
and 11.80% of pay, effective January 1, 2020.
• Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019,
and 17.70% of pay, effective January 1, 2020.
• Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
• Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
• Assumed salary increases were changed as recommended in the June 30, 2016, experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30% for vested and non -vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non -vested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
103
City of Cottage Grove
Notes to Required Supplementary Information
POLICE AND FIRE FUND (CONTINUED)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations
overall.
• Assumed percentage of married female members was decreased from 65% to 60%.
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing Joint and Survivor annuities was increased.
• The assumed post -retirement benefit increase rate was changed from 1% for all years to 1% per
year through 2064 and 2.5% thereafter.
• The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
• The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% thereafter to 1.0% per year for all future years.
• The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
• The single discount rate changed from 7.90% to 5.60%.
• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
• The assumed post -retirement benefit increase rate was changed from 1.0% per year through 2030
and 2.5% per year thereafter to 1.0% per year through 2037 and 2.5% per year thereafter.
Changes in Plan Provisions
• The post -retirement benefit increase to be paid after attainment of the 90% funding threshold was
changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
104
City of Cottage Grove
Notes to Required Supplementary Information
POST EMPLOYMENT HEALTH CARE PLAN
2020 Changes
Changes in Actuarial Assumptions
• The discount rate decreased from 2.74% in 2019 to 2.12% in 2020.
• Per capita claims and costs were reset to reflect updated experience, plans, and premiums as of
January 2021.
• The mortality improvement projection scale was updated.
• The general inflation rate was changed to the 2.50% rate used in the June 30, 2019 GERP and
June 30, 2019 PEPFF, material valuations (from 2.75%).
• 25.0% of GERP employees are assumed to elect coverage at retirement (changed from 20.0%
based on recent experience).
Changes in Plan Provisions
Medical plans and premiums have been updated effective as of January 1, 2021.
2019 Changes
Changes in Actuarial Assumptions
• The Discount rate decreased from 4.11 % in 2018 to 2.74% in 2019.
• The general inflation rate was changed to the 2.50% used in the June 30, 2019 GERP and June
30, 2019 PEPFF actuarial valuations.
• Changes of assumptions also reflect a change to 25.0% of GERP employees are assumed to elect
coverage at retirement, an increase from 20.0% based on recent experience.
2018 Changes
Changes in Actuarial Assumptions
• The discount rate increased from 3.44% in 2017 to 4.11 % in 2018.
There are no assets accumulated in a trust
105
%ere p(I d e WO
Cottage
Grove
,,perity Meet
106
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
107
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Grove
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m.
NONMAJOR GOVERNMENTAL FUNDS
109
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Cottage
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110
City of Cottage Grove
Nonmajor Governmental Funds
SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal, and related costs on general long-term debt.
CAPITAL PROJECTS FUNDS
The Capital Projects Funds account for financial resources to be used for the acquisition or construction
of major capital facilities (other than those financed by Proprietary Funds).
111
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112
City of Cottage Grove
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2020
With Comparative Totals for December 31, 2019
Totals
Nonmajor Governmental Funds
Special
Capital
Revenue
Debt Service
Projects
2020
2019
Assets
Cash and investments
$
1,292,597
$
4,128,227
$
17,190,832
$ 22,611,656
$ 20,701,841
Interfund receivable
782,204
23,354
33,570
839,128
612,644
Interfund loan receivable
-
-
661,279
661,279
759,864
Due from other governments
185,955
-
12,964
198,919
387,430
Accounts receivable
221,662
-
160,052
381,714
538,123
Prepaid items
23,818
-
10,000
33,818
14,933
Inventories
28,265
-
-
28,265
25,601
Taxes receivable - delinquent
-
11,726
5,144
16,870
12,707
Special assessments receivable
Deferred
-
2,157,437
324,782
2,482,219
3,191,581
Delinquent
-
3,392
-
3,392
5,003
Special deferred
-
1,242,042
5,169
1,247,211
2,452,678
Property held for resale
-
-
324,733
324,733
324,733
Total assets
$
2,534,501
$
7,566,178
$
18,728,525
$ 28,829,204
$ 29,027,138
Liabilities
Accounts payable
$
94,754
$
500
$
206,847
$ 302,101
$ 1,237,454
Salaries and benefits payable
34,258
-
-
34,258
104,529
Interfund payable
782,204
23,354
33,570
839,128
612,644
Contracts payable
-
-
45,311
45,311
202,055
Due to other governments
1,710
-
-
1,710
5,688
Deposits payable
14,499
-
40,000
54,499
23,223
Interfund loan payable
-
30,032
631,247
661,279
759,864
Total liabilities
927,425
53,886
956,975
1,938,286
2,945,457
Deferred Inflows of Resources
Unavailable revenue - tax increment
-
-
5,144
5,144
2,802
Unavailable revenue - property taxes
-
11,726
-
11,726
9,905
Unavailable revenue -
special assessments
-
31402,871
329,951
3,732,822
5,649,262
Total deferred inflows
of resources
-
31414,597
335,095
3,749,692
5,661,969
Fund Balances
Nonspendable
52,083
-
10,000
62,083
40,534
Restricted
90,911
4,121,049
757,921
4,969,881
3,876,020
Committed
2,136,969
-
-
2,136,969
1,736,590
Assigned
-
-
16,702,104
16,702,104
15,317,720
Unassigned
(672,887)
(23,354)
(33,570)
(729,811)
(551,152)
Total fund balances
1,607,076
4,097,695
17,436,455
23,141,226
20,419,712
Total liabilities, deferred
inflows of resources, and
fund balances
$
2,534,501
$
7,566,178
$
18,728,525
$ 28,829,204
$ 29,027,138
113
City of Cottage Grove
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
For the Year Ended December 31, 2020
With Compartive Totals for the Year Ended December 31, 2019
Totals
Nonmajor Governmental Funds
Special
Capital
Revenue
Debt Service
Projects
2020
2019
Revenue
General property taxes
$ -
$ 2,398,877
$ -
$ 2,398,877 $
1,587,867
Franchise taxes
-
-
596,537
596,537
583,715
Aggregate taxes
-
-
22,699
22,699
22,250
Tax increment collections
-
673,740
647,919
1,321,659
1,085,358
Special assessments
-
1,312,593
199,616
1,512,209
956,189
Direct charges to developers
-
-
81,962
81,962
67,789
Intergovernmental
3,280,842
-
-
3,280,842
1,778,347
Charges for services
3,724,604
-
94,114
3,818,718
3,780,213
Rent
-
-
436,448
436,448
416,220
Fines and forfeitures
22,288
-
-
22,288
61,931
Investment earnings
28,028
24,986
247,741
300,755
583,166
Interest on interfund loan
-
-
21,895
21,895
23,903
Connection charges
-
-
1,577,096
1,577,096
1,281,918
Park dedication fees
-
-
1,110,209
1,110,209
472,500
Donations
-
-
361,818
361,818
357,003
Miscellaneous
16,129
-
422,632
438,761
617,921
Total revenues
7,071,891
4,410,196
5,820,686
17,302,773
13,676,290
Expenditures
Current
General government
2,607,698
17,173
10,794
2,635,665
30,460
Economic development
-
-
539,092
539,092
447,061
Public safety
495,442
-
-
495,442
142,241
Public works
828,480
-
928,162
1,756,642
912,446
Culture and recreation
2,309,321
-
237,478
2,546,799
2,859,701
Capital outlay
General government
219,089
-
86,269
305,358
-
Public safety
11,210
-
-
11,210
38,321
Public works
-
-
2,138,476
2,138,476
4,900,306
Culture and recreation
200,062
-
1,310,691
1,510,753
3,497,263
Debt service
Principal retirement
-
2,435,000
-
2,435,000
2,420,000
Interest and other charges
-
1,301,084
21,895
1,322,979
1,141,249
Total expenditures
6,671,302
3,753,257
5,272,857
15,697,416
16,389,048
Excess of revenues over
(under) expenditures
400,589
656,939
547,829
1,605,357
(2,712,758)
Other Financing Sources (Uses)
Proceeds from sale of capital asset
-
-
13,771
13,771
35,932
Bond issuance
-
-
-
-
2,978,387
Bond premium
-
-
-
-
111,990
Transfers in
126,389
247,000
2,421,620
2,795,009
1,884,697
Transfers out
(288,300)
-
(1,404,323)
(1,692,623)
(2,390,530)
Total other financing sources (uses)
(161,911)
247,000
1,031,068
1,116,157
2,620,476
Net change in fund balances
238,678
903,939
1,578,897
2,721,514
(92,282)
Fund Balances
Beginning of year
1,368,398
3,193,756
15,857,558
20,419,712
20,511,994
End of year
$ 1,607,076
$ 4,097,695
$ 17,436,455
$ 23,141,226
$ 20,419,712
114
City of Cottage Grove
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally
restricted to expenditures for particular purposes. The City maintained the following Special Revenue
Funds during the year:
Recycling — Established to account for recycling advertising, promotion, and capital expenditures.
Storm Water Maintenance — Established to account for the receipt of storm water fees to be used for
storm water maintenance activities.
Forfeiture/Seizure — Established to account for Police Department proceeds from property seized under
MS 609.53.
Ice Arena Fund — Established to account for operating the City's ice arena.
Golf Course Fund — Established to account for the City's 18-hole golf course and banquet facility.
HERO Center Operations Fund — Established to account for the HERO Center operations.
COVID 19 Pandemic Relief— Established to account for pandemic relief costs.
115
City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Special Revenue Funds
December 31, 2020
With Comparative Totals For December 31, 2019
Assets
Cash and investments
Interfund receivable
Due from other governments
Accounts receivable
Prepaid items
Inventories
Total assets
Liabilities
Accounts payable
Salaries and benefits payable
Interfund payable
Due to other governments
Deposits payable
Total liabilities
Fund Balances
Nonspendable
Restricted
Committed
Unassigned
Total fund balances
Total liabilities and fund balances
Storm Water
Recycling Maintenance Forfeiture/
(215) (230) Seizure (240) Ice Arena (250)
$ 80,149 $ 1,074,298 $ 89,681 $ -
- 782,204 - -
62,165 - -
- 150,670 - 61,664
- - 3,012
$ 80,149 $ 2,069,337 $ 89,681 $ 64,676
6,305 12,415 270 20,496
- 6,478 - 7,694
- - 630,563
- 675 - 31
- 3,012
- - 89,411 -
73,844 2,049,769 - -
- - - (597,120)
73,844 2,049,769 89,411 (594,108)
$ 80,149 $ 2,069,337 $ 89,681 $ 64,676
116
Totals
Nonmajor Special Revenue Funds
HERO Center
COVID 19
Golf Course
Operations
Pandemic
Fund (255)
(290)
Relief (220)
2020
2019
$ 27,951
$ -
$ 20,518
$ 1,292,597
$ 930,590
-
-
-
782,204
600,058
-
123,790
-
185,955
353,017
6,928
900
1,500
221,662
383,177
4,840
15,966
-
23,818
14,933
28,265
-
-
28,265
25,601
$ 67,984
$ 140,656
$ 22,018
$ 2,534,501
$ 2,307,376
7,610
27,140
20,518
94,754
225,622
13,255
6,831
-
34,258
104,529
-
151,641
-
782,204
600,058
658
346
-
1,710
5,688
-
14,499
-
14,499
3,081
21,523
200,457
20,518
927,425
938,978
33,105
15,966
-
52,083
40,534
-
-
1,500
90,911
75,106
13,356
-
-
2,136,969
1,736,590
-
(75,767)
-
(672,887)
(483,832)
46,461
(59,801)
1,500
1,607,076
1,368,398
$ 67,984
$ 140,656
$ 22,018
$ 2,534,501
$ 2,307,376
117
City of Cottage Grove
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
Nonmajor Special Revenue Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Miscellaneous
Total revenues
Expenditures
Current
General Government
Public safety
Public works
Culture and recreation
Capital outlay
General Government
Public safety
Public works
Culture and recreation
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances
Beginning of year
End of year
Storm Water
Recycling
Maintenance
Forfeiture/
(215)
(230)
Seizure (240)
Ice Arena(250)
$ 55,066
$ 226,057
$ -
$ 57,000
-
949,712
-
664,531
-
-
22,288
-
1,153
24,815
1,208
-
-
-
-
9,598
56,219
1,200,584
23,496
731,129
- - 9,191
54,545 773,935 - -
- - 653,735
- - - 56,195
54,545 773,935 9,191 709,930
1,674 426,649 14,305 21,199
- (41,300) - (247,000)
(41,300) - (247,000)
1,674 385,349 14,305 (225,801)
72,170 1,664,420 75,106 (368,307)
$ 73,844 $ 2,049,769 $ 89,411 $ (594,108)
118
Totals
HERO Center
COVID 19
Golf Course
Operations
Pandemic
Fund (255)
(290)
Relief (220)
2020
2019
$ -
$ 116,650
$ 2,826,069
$ 3,280,842
$ 278,347
1,858,701
251,660
-
3,724,604
3,760,500
-
-
-
22,288
61,931
134
-
718
28,028
39,334
4,780
251
1,500
16,129
67,341
1,863,615
368,561
2,828,287
7,071,891
4,207,453
-
-
2,607,698
2,607,698
-
486,251
-
495,442
142,241
-
-
-
828,480
635,345
1,655,586
-
-
2,309,321
2,690,757
-
-
219,089
219,089
-
11,210
-
11,210
38,321
-
-
-
-
13,354
143,867
-
-
200,062
311,849
1,799,453
497,461
2,826,787
6,671,302
3,831,867
64,162
(128,900)
1,500
400,589
375,586
-
126,389
-
126,389
-
-
-
-
(288,300)
(241,300)
-
126,389
-
(161,911)
(241,300)
64,162
(2,511)
1,500
238,678
134,286
(17,701)
(57,290)
-
1,368,398
1,234,112
$ 46,461
$ (59,801)
$ 1,500
$ 1,607,076
$ 1,368,398
119
%ere p(I d e WO
Cottage
Grove
,,perity Meet
120
City of Cottage Grove
NONMAJOR DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal, and related costs on long-term debt.
The City's Debt Service Funds account for three types of bonded indebtedness:
Improvement Bonds
Refunding Bonds
Tax Increment Bonds
121
City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Debt Service Funds
December 31, 2020
With Comparative Totals for December 31, 2019
Assets
Cash and investments
Interfund receivable
Taxes receivable - delinquent
Special assessments receivable
Deferred
Delinquent
Special deferred
Total assets
Liabilities
Accounts payable
Interfund payable
Interfund loan payable
Total liabilities
Deferred Inflows of Resources
Unavailable revenue - property taxes
Unavailable revenue - special assessments
Total deferred inflows of resources
Fund Balances
Restricted
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
2019B
2017A G.O.
2019A G.O.
Equipment
2018A G.O.
Capital
CIP Bonds
Certificate
Improvement
Improvement
(315)
(305)
Bonds (310)
Bonds (371)
$ 230,534
$ -
$ 1,142,796
$ 496,048
-
-
23,354
-
761
892
-
3,489
-
-
22,610
-
-
-
654
-
-
-
1,226,569
-
$ 231,295
$ 892
$ 2,415,983
$ 499,537
23,354 - -
23,354 - -
761 892 - 3,489
- - 1,249,833 -
761 892 1,249,833 3,489
230,534 - 1,166,150 496,048
- (23,354) - -
230,534 (23,354) 1,166,150 496,048
$ 231,295 $ 892 $ 2,415,983 $ 499,537
122
Pavement
Management
2016A G.O. Debt Service
Refunding (490, 491, 492, Tax Increment
Bonds (369) 493) Funds
Totals
Nonmajor Debt Service Funds
2020 2019
$
24,610
$
1,879,500
$
354,739
$
4,128,227
$
3,224,138
-
-
-
23,354
12,236
1,787
4,797
-
11,726
9,905
-
2,134,827
-
2,157,437
2,666,891
-
2,738
-
3,392
5,003
-
15,473
-
1,242,042
2,447,663
$
26,397
$
4,037,335
$
354,739
$
7,566,178
$
8,365,836
$
-
$
500
$
-
$
500
$
-
-
-
-
23,354
12,586
-
-
30,032
30,032
30,032
-
500
30,032
53,886
42,618
1,787
4,797
-
11,726
9,905
-
2,153,038
-
3,402,871
5,119,557
1,787
2,157,835
-
3,414,597
5,129,462
24,610
1,879,000
324,707
4,121,049
3,229,884
-
-
-
(23,354)
(36,128)
24,610
1,879,000
324,707
4,097,695
3,193,756
$
26,397
$
4,037,335
$
354,739
$
7,566,178
$
8,365,836
123
City of Cottage Grove
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Debt Service Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
General property taxes
Tax increment collections
Special assessments
Investment earnings
Total revenues
Expenditures
Current
General government
Debt service
Principal retirement
Interest and other charges
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources
Bond issuance
Transfers in
Total other financing sources
Net change in fund balances
Fund Balances
Beginning of year
End of year
2019B
2017A G.O.
2019A G.O.
Equipment
2018A G.O.
Capital
CIP Bonds
Certificate
Improvement
Improvement
(315)
(305)
Bonds (310)
Bonds (371)
$ 297,585
$ 349,014
$ 199,830
$ 640,505
-
-
770,365
-
338
-
7,817
890
297,923
349,014
978,012
641,395
$ 820
$ 825
$ 991
$ 819
-
250,000
-
355,000
202,578
121,193
228,600
250,100
203,398
372,018
229,591
605,919
94,525
(23,004)
748,421
35,476
94,525 (23,004) 748,421 35,476
136,009 (350) 417,729 460,572
$ 230,534 $ (23,354) $ 1,166,150 $ 496,048
124
Totals
Nonmajor Debt Service Funds
Pavement
Management
2016A G.O.
Debt Service
Refunding
(490, 491, 492,
Tax Increment
Bonds(369)
493)
Funds
2020
2019
$ 190,716
$ 721,227
$ -
$ 2,398,877
$ 1,587,867
-
-
673,740
673,740
320,000
-
542,228
-
1,312,593
755,784
-
15,541
400
24,986
54,657
190,716
1,278,996
674,146
4,410,196
2,718,308
$ -
$ 11,647
$ 2,071
$ 17,173
$ 21,997
330,000
1,225,000
275,000
2,435,000
2,420,000
70,870
378,923
48,820
1,301,084
1,064,830
400,870
1,615,570
325,891
3,753,257
3,506,827
(210,154)
(336,574)
348,249
656,939
(788,519)
-
-
-
-
133,387
247,000
-
-
247,000
493,550
247,000
-
-
247,000
626,937
36,846
(336,574)
348,249
903,939
(161,582)
(12,236)
2,215,574
(23,542)
3,193,756
3,355,338
$ 24,610
$ 1,879,000
$ 324,707
$ 4,097,695
$ 3,193,756
125
%ere p(I d e WO
Cottage
Grove
,,perity Meet
126
City of Cottage Grove
NONMAJOR CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for the acquisition and construction of major capital
facilities other than those financed by Proprietary Funds.
Equipment Replacement Fund — Established to accumulate monies for the replacement of capital
equipment.
Street Sealcoating — Established to account for the receipt of franchise fees to be used for
sealcoating activities.
Future Economic Development Fund — Established to account for the receipt and use of monies for
economic development purposes.
Completed Construction — to account for the various surpluses (deficits) of other Special
Assessment Construction Funds.
Park Trust — to account for capital projects in new municipal parks.
Park Capital Improvements — to account for capital projects in existing municipal parks.
Future Storm Sewer Improvements — to collect storm sewer area charges which are designated for
future construction.
Sewer Connection and Area — to account for sewer connection and area charges.
Pavement Management Capital Project Fund — to account for pavement management construction
proj ects.
Tax Increment Construction Revolving Fund — to account for construction projects that are financed
with tax increments.
Ice Arena Construction Fund— to account for construction projects related to the Ice Arena.
127
City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Capital Projects Funds
December 31, 2020
With Comparative Totals for December 31, 2019
Equipment
Street
Completed
Replacement
Sealcoating
Future Economic
Construction
Park Trust
(210)
(235)
Development(286)
(500)
(570)
Assets
Cash and investments
$ 1,317,210
$ 904,670
$ 3,895,025
$ 407,724
$ 1,594,464
Interfund receivable
-
-
-
-
-
Interfund loan receivable
-
661,279
Due from other governments
12,964
-
Accounts receivable
150,442
9,610
Prepaid items
-
10,000
Taxes receivable - delinquent
-
Special assessments receivable
Deferred
Special deferred
-
Property held for resale
-
-
324,733
-
-
Total assets
$ 1,317,210
$ 1,068,076
$ 4,900,647
$ 407,724
$ 1,594,464
Liabilities
Accounts payable
$ -
$ 660
$ 1,363
$ 16,442
$ 31,024
Interfund payable
-
-
-
-
Contracts payable
45,311
Deposits payable
-
Interfund loan payable
-
-
-
-
Total liabilities
660
1,363
16,442
76,335
Deferred Inflows of Resources
Unavailable revenue - tax increment
-
-
-
-
Unavailable revenue - special assessments
Total deferred inflows of resources
-
Fund Balances
Nonspendable
10,000
Restricted
-
-
-
-
-
Assigned
1,317,210
1,067,416
4,889,284
391,282
1,518,129
Unassigned
-
-
-
-
-
Total fund balances
1,317,210
1,067,416
4,899,284
391,282
1,518,129
Total liabilities, deferred inflows
of resources, and fund balances
$ 1,317,210
$ 1,068,076
$ 4,900,647
$ 407,724
$ 1,594,464
128
Totals
Nonmajor Capital Projects Funds
Future Storm Pavement
Park Capital Sewer Sewer Management Tax Increment Ice Arena
Improvement Improvements Connection and Capital Project Construction Construction
Fund(515) (585) Area(580) (560) Revolving Fund (526) 2020 2019
$ 1,537,843 $ 3,636,395 $ 732,332 $ 1,776,001 $ 1,389,168 $ $ 17,190,832 $ 16,547,113
33,570 - - - - 33,570 350
- 661,279 759,864
12,964 34,413
160,052 154,946
- 10,000 -
5,144 5,144 2,802
324,782 324,782 524,690
5,169 5,169 5,015
- - - - 324,733 324,733
$ 1,571,413 $ 3,636,395 $ 732,332 $ 2,105,952 $ 1,394,312 $ $ 18,728,525 $ 18,353,926
$ 16,973 $ 17,786 $ 84,953 $ 37,646 $ $ - $ 206,847 $ 1,011,832
- - - - 33,570 33,570 -
- - 45,311 202,055
40,000 40,000 20,142
- - - - 631,247 - 631,247 729,832
56,973 17,786 84,953 37,646 631,247 33,570 956,975 1,963,861
- 5,144 5,144 2,802
329,951 - 329,951 529,705
329,951 5,144 335,095 532,507
- 10,000 -
- - - - 757,921 757,921 571,030
1,514,440 3,618,609 647,379 1,738,355 - 16,702,104 15,317,720
- - - - - (33,570) (33,570) (31,192)
1,514,440 3,618,609 647,379 1,738,355 757,921 (33,570) 17,436,455 15,857,558
$ 1,571,413 $ 3,636,395 $ 732,332 $ 2,105,952 $ 1,394,312 $ - $ 18,728,525 $ 18,353,926
129
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
Nonmajor Capital Projects Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Franchise taxes
Aggregate taxes
Tax increment collections
Special assessments
Direct charges to developers
Intergovernmental
Charges for services
Rent
Investment earnings
Interest on interfund loan
Connection charges
Park dedication fees
Donations
Miscellaneous
Total revenues
Expenditures
Current
General government
Economic development
Public works
Culture and recreation
Capital outlay
General government
Public works
Culture and recreation
Debt service
Interest and other charges
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources (Uses)
Proceeds from sale of capital assets
Bond Issuance
Bond Premium
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund Balances
Beginning of year
End of year
Future
Equipment
Street
Economic
Completed
Replacement
Sealcoating
Development
Construction
Park Trust
(210)
(235)
(286)
(500)
(570)
$
$ 596,537
$
$
$
22,699
-
9,817
36,640
81,962
-
-
94,114
10,306
26,034
57,369
7,403
21,955
-
-
21,895
-
-
-
1,110,209
-
361,818
-
762
-
400,210
17,135
11,068
821,346
851,109
7,403
1,185,939
10,108 - 686
- - 87,527 -
623 682,278 - -
- - 72,268
- - 86,269
1,219,430 72,366 - -
- - 1,206,618
1,230,161
754,644
87,527
86,955
1,278,886
(1,219,093)
66,702
763,582
(79,552)
(92,947)
13,771
-
-
1,637,679
548,870
-
(625,480)
(548,870)
(100,000)
1,651,450
(625,480)
(548,870)
448,870
432,357
(558,778)
214,712
(79,552)
355,923
884,853
1,626,194
4,684,572
470,834
1,162,206
$ 1,317,210
$ 1,067,416
$ 4,899,284 $
391,282
$ 1,518,129
130
Totals
Nonmajor Capital Projects Funds
Future Storm
Pavement
Park Capital
Sewer
Sewer
Management
Tax Increment
Ice Arena
Improvement
Improvements
Connection and
Capital Project
Construction
Construction
Fund (515)
(585)
Area (580)
(560)
Revolving Fund
(526)
2020
2019
$
$
$
$
$
$
$ 596,537
$ 583,715
22,699
22,250
647,919
647,919
765,358
64,551
22,990
65,618
-
199,616
200,405
-
-
-
81,962
67,789
-
1,500,000
94,114
19,713
436,448
-
-
-
-
436,448
416,220
22,390
58,441
3,740
26,599
12,432
1,072
247,741
489,175
-
-
-
-
-
-
21,895
23,903
792,024
785,072
1,577,096
1,281,918
-
-
1,110,209
472,500
-
361,818
357,003
4,525
-
-
-
-
422,632
550,580
463,363
915,016
811,802
92,217
660,351
1,072
5,820,686
6,750,529
-
10,794
8,463
-
-
-
451,565
539,092
447,061
-
113,733
129,938
1,590
-
928,162
277,101
165,210
-
-
-
237,478
168,944
-
-
-
-
86,269
-
-
632,856
56,349
157,475
-
2,138,476
4,886,952
100,623
-
-
-
-
3,450
1,310,691
3,185,414
-
-
-
21,895
-
21,895
76,419
265,833
746,589
186,287
159,065
473,460
3,450
5,272,857
9,050,354
197,530
168,427
625,515
(66,848)
186,891
(2,378)
547,829
(2,299,825)
-
-
-
-
13,771
35,932
-
2,845,000
-
-
-
111,990
100,000
135,071
2,421,620
1,391,147
-
(129,973)
-
(1,404,323)
(2,149,230)
100,000
(129,973)
135,071
-
1,031,068
2,234,839
297,530
38,454
625,515
68,223
186,891
(2,378)
1,578,897
(64,986)
1,216,910
3,580,155
21,864
1,670,132
571,030
(31,192)
15,857,558
15,922,544
$ 1,514,440 $
3,618,609 $
647,379 $
1,738,355 $
757,921
$ (33,570) $
17,436,455 $
15,857,558
131
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual
Recycling Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
Expenditures
Current
Public works
Excess of revenues over
(under) expenditures
Fund Balances
Beginning of year
End of year
2020
Budgeted Amounts
Original Final
$ 55,000 $ 55,000 $
2019
Variance with
Actual Final Budget -
Amounts Over (Under) Actual
55,066 $ 66 $ 54,466
1,153 1,153 2,191
- - 144
55,000 55,000 56,219 1,219 56,801
62,030 62,030 54,545 (7,485) 49,700
$ (7,030) $ (7,030) 1,674 $ 8,704
72,170
$ 73,844
7,101
65,069
$ 72,170
132
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual -
Storm Water Maintenance Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
2020 2019
Budgeted Amounts
Variance with
Actual
Final Budget -
Original
Final
Amounts
Over (Under)
Actual
Revenues
Charges for services
$ 906,000
$ 906,000
$ 949,712
$ 43,712
$ 884,674
Investment earnings
10,000
10,000
24,815
14,815
35,101
Intergovernmental
-
-
226,057
226,057
66,611
Total revenues
916,000
916,000
1,200,584
284,584
986,386
Expenditures
Current
Public works
536,835
536,835
773,935
237,100
585,645
Capital outlay
Public works
-
-
-
-
13,354
Total expenditures
536,835
536,835
773,935
237,100
598,999
Excess of revenues over
expenditures
379,165
379,165
426,649
47,484
387,387
Other Financing Uses
Transfers out
(41,300)
(41,300)
(41,300)
-
(41,300)
Net change in fund balance
$ 337,865
$ 337,865
385,349
$ 47,484
346,087
Fund Balances
Beginning of year
1,664,420
1,318,333
End of year
$ 2,049,769
$ 1,664,420
133
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual -
Forfeiture/Seizure Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
2020
2019
Budgeted Amounts
Variance with
Actual
Final Budget -
Original Final
Amounts
Over (Under)
Actual
Revenues
Fines and forfeitures
$ 30,060 $ 30,060 $
22,288
$ (7,772)
$ 61,931
Intergovernmental
8,000 8,000
-
(8,000)
-
Investment income
200 200
1,208
1,008
1,614
Total revenues
38,260 38,260
23,496
(14,764)
63,545
Expenditures
Current
Public safety
Capital outlay
Public safety
Total expenditures
Excess of revenues over
expenditures
Fund Balance
Beginning of year
End of year
19,230 19,230 9,191 (10,039) 24,882
10,100 10,100 - (10,100) -
29,330 29,330 9,191 (20,139) 24,882
$ 8,930 $ 8,930 14,305 $ 5,375
75,106
$ 89,411
38,663
36,443
S 75,106
134
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual -
Ice Arena Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
2020
2019
Budgeted Amounts
Variance with
Actual
Final Budget -
Original
Final
Amounts
Over (Under)
Actual
Revenues
Intergovernmental
$ 57,000
$ 57,000 $
57,000
$ -
$ 57,000
Charges for services
1,026,500
1,026,500
664,531
(361,969)
908,230
Investment earnings
6,000
6,000
-
(6,000)
-
Contributions and donations
-
-
-
-
25,500
Miscellaneous
-
-
9,598
9,598
39,327
Total revenues
1,089,500
1,089,500
731,129
(358,371)
1,030,057
Expenditures
Current
Culture and recreation
823,710
823,710
653,735
(169,975)
842,389
Capital outlay
Culture and recreation
82,000
82,000
56,195
(25,805)
189,147
Total expenditures
905,710
905,710
709,930
(195,780)
1,031,536
Excess of revenues over
(under) expenditures
183,790
183,790
21,199
(162,591)
(1,479)
Other Financing Uses
Transfers out
(247,000)
(247,000)
(247,000)
-
(200,000)
Net change in fund balances
$ (63,210)
$ (63,210)
(225,801)
$ (162,591)
(201,479)
Fund Balance
Beginning of year
End of year
(368,307)
$ (594,108)
(166,828)
$ (368,307)
135
Revenues
Intergovernmental
Charges for services
Investment earnings
Miscellaneous
Total revenues
Expenditures
Current
Culture and recreation
Capital outlay
Culture and recreation
Debt Service
Principal retirement
Interest and other charges
Total expenditures
Net change in fund balances
Fund Balance
Beginning of year
End of year
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual -
Golf Course Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Budgeted Amounts
Original Final
2020 2019
Variance with
Actual Final Budget -
Amounts Over (Under)
$ -
$ -
$ -
$ -
$ 1,880
1,976,045
1,976,045
1,858,701
(117,344)
1,967,596
-
-
134
134
428
-
4,780
4,780
2,370
1,976,045
1,976,045
1,863,615
(112,430)
1,972,274
1,768,785
1,768,785
1,655,586
(113,199)
1,848,368
225,000
225,000
143,867
(81,133)
122,702
38,900
38,900
-
(38,900)
-
3,160
3,160
-
(3,160)
-
2,035,845
2,035,845
1,799,453
(236,392)
1,971,070
$ (59,800)
$ (59,800)
64,162
$ 123,962
1,204
(17,701)
(18,905)
$ 46,461
$ (17,701)
136
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual
HERO Center Operations Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Intergovernmental
Charges for services
Miscellaneous
Total revenues
Expenditures
Current
Public safety
Capital outlay
Public safety
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Sources
Transfers in
Net change in fund balances
Fund Balances
Beginning of year
End of year
2020
2019
Budgeted Amounts
Variance with
Actual
Final Budget -
Original
Final
Amounts
Over (Under)
Actual
$ 2,000
$ 2,000 $
116,650
$ 114,650
$ 98,390
484,630
484,630
251,660
(232,970)
-
100
100
251
151
-
486,730
486,730
368,561
(118,169)
98,390
406,100
406,100
486,251
80,151
117,359
-
-
11,210
11,210
38,321
406,100
406,100
497,461
91,361
155,680
80,630 80,630 (128,900) (209,530)
- - 126,389 126,389
$ 80,630 $ 80,630 (2,511) $ (83,141)
(57,290)
$ (59,801)
(57,290)
(57,290)
$ (57,290)
137
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual
COVID 19 Pandemic Relief Special Revenue Fund
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
Expenditures
Current
General government
Capital outlay
General government
Total expenditures
Net change in fund balance
Fund Balances
Beginning of year
End of year
2020
2019
Budgeted Amounts Variance with
Actual Final Budget -
Original Final Amounts Over (Under) Actual
$ - $ - $ 2,826,069 $ 2,826,069 $
- - 718 718
- 1,500 1,500
- - 2,828,287 2,828,287
- - 2,607,698 2,607,698
- - 219,089 219,089
2,826,787 -
1,500 $ 2,828,287
$ 1,500
138
City of Cottage Grove
INTERNAL SERVICE FUNDS
Internal Service Funds account for the financing of goods or services provided by one
department or division to other departments or divisions of the city and to other governmental
units, on a cost reimbursement basis.
Self -Insurance Fund — Established to provide self-insurance for the City and its officers,
employees and agents for claims in excess of standard deductibles and to account for the City
flexible spending program and purchase of insurance.
Fleet Maintenance Fund — Established to account for costs related to repair and maintenance
of City equipment and vehicles. Revenues received from departments are based on level of
service performed.
Information Services Fund — Established to account for costs related to accessing information
electronically and maintaining technology services including phone, voicemail and internet
services. Revenues received from departments are based on usage of those technology
services.
139
City of Cottage Grove
Combining Statement of Net Position -
Internal Service Funds
December 31, 2020
With Comparative Totals for December 31, 2019
Totals
Fleet
Self Insurance
Maintenance
Information
(700)
(710)
Services(720)
2020
2019
Assets
Current assets
Cash and investments
(Including cash equivalents)
$
1,317,222
$ -
$
$
1,317,222
$
1,889,721
Accounts receivable
12,271
643
12,914
6,174
Interfund receivable
358,682
-
358,682
79,877
Inventories
-
121,143
121,143
95,599
Prepaid items
289,099
260
132,754
422,113
290,485
Total current assets
1,977,274
122,046
132,754
2,232,074
2,361,856
Noncurrent assets
Capital assets
Land
-
424,665
-
424,665
424,665
Buildings and improvements
928,870
-
928,870
928,870
Equipment and furniture
-
137,566
137,566
171,318
Machinery and equipment
512,274
-
512,274
373,277
Total capital assets
1,865,809
137,566
2,003,375
1,898,130
Accumulated depreciation
(913,358)
(104,764)
(1,018,122)
(873,647)
Total noncurrent assets
952,451
32,802
985,253
1,024,483
Total assets
1,977,274
1,074,497
165,556
3,217,327
3,386,339
Deferred Outflows of Resources
Deferred outflows of resources related to pensions
-
42,111
23,043
65,154
42,473
Deferred outflows of resources related to OPEB
1,843
925
2,768
1,709
Total deferred outflows of resources
-
43,954
23,968
67,922
44,182
Total assets and deferred outflows of resources
$
1,977,274
$ 1,118,451
$ 189,524
$
3,285,249
S
3,430,521
Liabilities
Current liabilities
Accounts payable
$
9,354
$ 16,555
$ 41,648
$
67,557
$
152,634
Salaries payable
522
20,260
10,751
31,533
44,236
Health care benefits payable
26,104
-
-
26,104
31,703
Interfund payable
-
57,046
301,636
358,682
79,877
Unpaid claims
325,646
-
-
325,646
201,608
Due to other governments
6,535
1,221
8
7,764
1,261
Compensated absences payable
-
27,131
18,710
45,841
38,082
Total current liabilities
368,161
122,213
372,753
863,127
549,401
Noncurrent liabilities
Compensated absences payable
-
20,940
6,722
27,662
17,764
Net pension liability
352,682
192,990
545,672
382,644
Total OPEB liability
14,656
7,355
22,011
15,967
Total noncurrent liabilities
-
388,278
207,067
595,345
416,375
Total liabilities
368,161
510,491
579,820
1,458,472
965,776
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
-
15,996
8,753
24,749
71,696
Deferred inflows of resources related to OPEB
917
460
1,377
902
Total deferred inflows of resources
16,913
9,213
26,126
72,598
Net Position
Net investment in capital assets
-
952,451
32,802
985,253
1,024,483
Unrestricted
1,609,113
(361,404)
(432,311)
815,398
1,367,664
Total net position
1,609,113
591,047
(399,509)
1,800,651
2,392,147
Total liabilities, deferred inflows of
resources, and net position
$
1,977,274
$ 1,118,451
$ 189,524
$
3,285,249
$
3,430,521
140
City of Cottage Grove
Combining Statement of Revenues, Expenses, and
Changes in Net Position - Internal Service Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Fleet
Self Insurance Maintenance Information
(700) (710) Services (720)
Totals
2020 2019
Operating Revenues
Charges for services
User fees $ - $ 1,380,175 $ 839,430 $ 2,219,605 $ 1,870,092
Employee benefits 2,185,390 - - 2,185,390 2,056,645
Insurance refunds and reimbursements 46,595 - - 46,595 54,647
Total operating revenues 2,231,985 1,380,175 839,430 4,451,590 3,981,384
Operating Expenses
Operating and maintenance
Personal services
-
738,789
327,023
1,065,812
724,822
Contractual services
-
219,997
499,107
719,104
697,182
Commodities
-
489,706
147,781
637,487
717,877
Administrative and general
Personal insurance benefits
1,865,292
-
-
1,865,292
1,837,782
Contractual services
380,101
-
-
380,101
265,272
Claims
369,067
-
-
369,067
204,025
Depreciation
-
53,380
20,652
74,032
72,636
Total operating expenses
2,614,460
1,501,872
994,563
5,110,895
4,519,596
Operating loss
(382,475)
(121,697)
(155,133)
(659,305)
(538,212)
Nonoperating Revenues
Investment income
33,443
134
-
33,577
58,416
Loss on sale of asset
-
-
(21,820)
(21,820)
-
Miscellaneous
8,219
4,847
-
13,066
8,477
Total nonoperating revenues
41,662
4,981
(21,820)
24,823
66,893
Income before capital contributions
(340,813)
(116,716)
(176,953)
(634,482)
(471,319)
Capital contributions
-
42,986
-
42,986
-
Change in net position
(340,813)
(73,730)
(176,953)
(591,496)
(471,319)
Net Position
Beginning of year
1,949,926
664,777
(222,556)
2,392,147
2,863,466
End ofyear
$ 1,609,113
$ 591,047 $
(399,509)
$ 1,800,651
$ 2,392,147
141
City of Cottage Grove
Combining Statement of Cash Flows -
Internal Service Funds
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Cash Flows - Operating Activities
Receipts from interfund services provided
Receipts from insurance refunds
and reimbursements
Payments to suppliers
Payments to employees
Miscellaneous revenue
Net cash flows - operating activities
Cash Flows - Noncapital
Financing Activities
Advances to/from other funds
Cash Flows - Capital and Related
Financing Activities
Acquisition of capital assets
Cash Flows - Investing Activities
Interest and dividends received
Net change in cash and cash equivalents
Cash and Cash Equivalents
January 1
December 31
Reconciliation of Operating Loss
to Net Cash Flows - Operating Activities
Operating loss
Adjustments to reconcile operating
loss to net cash
flows - operating activities
Depreciation expense
Miscellaneous revenue
Pension expense
Receivables
Prepaid items
Inventory
Accounts payable
Unpaid claims
Due to other governmental units
Salaries payable
Health care benefits payable
Compensated absences payable
OPEB expense
Total adjustments
Net cash flows - operating activities
Noncash Investing, Capital, and
Financing Activities
Capital asset contributions
Totals
Fleet
Self Insurance
Maintenance
Information
(700)
(710)
Services (720)
2020
2019
$ 2,179,013
$ 1,379,812
$ 839,430
$ 4,398,255
$ 3,920,563
46,595
-
-
46,595
54,647
(653,374)
(820,043)
(744,050)
(2,217,467)
(1,765,827)
(1,870,775)
(644,975)
(317,139)
(2,832,889)
(2,486,393)
8,219
4,846
13,065
8,477
(290,322)
(80,360)
(221,759)
(592,441)
(268,533)
(278,805)
57,046
221,759
-
(13,635)
33,443 134
(535,684) (36,815)
(13,635) (13,937)
- 33,577 58,416
- (572,499) (224,054)
1,852,906 36,815 - 1,889,721 2,113,775
$ 1,317,222 $ $ $ 1,317,222 $ 1,889,721
$ (382,475) $ (121,697) $ (155,133) $ (659,305) $ (538,212)
-
53,380
20,652
74,032
72,636
8,219
4,846
-
13,065
8,477
-
81,201
12,199
93,400
56,167
(6,377)
(363)
-
(6,740)
(6,174)
(39,070)
(260)
(92,298)
(131,628)
(7,972)
-
(25,544)
-
(25,544)
20,365
4,330
(84,535)
(4,872)
(85,077)
73,984
124,038
-
-
124,038
31,484
6,496
(1)
8
6,503
668
116
(6,868)
(5,951)
(12,703)
12,957
(5,599)
-
-
(5,599)
(7,316)
14,455
3,202
17,657
11,476
-
5,026
434
5,460
2,927
92,153
41,337
(66,626)
66,864
269,679
$ (290,322) $ (80 360) $ (221,759) $ (592,441) $ (268,533)
$ $ 42,986 $ - $ 42,986 $ -
142
City of Cottage Grove
ECONOMIC DEVELOPMENT AUTHORITY COMPONENT UNIT
Established to account for the receipt and use of monies for economic development purposes.
143
City of Cottage Grove
Combining Balance Sheet - All Governmental Fund Types -
Economic Development Authority Component Unit
December 31, 2020
With Comparative Totals for December 31, 2019
Assets
Accounts receivable
Prepaid items
Taxes receivable - delinquent
Loan receivable
Property held for resale
Total assets
Liabilities
Accounts payable
Salaries and benefits payable
Due to other governments
Deposits Payable
Total liabilities
Deferred inflows of resources
Unavailable revenue - property taxes
Fund balances
Nonspendable
Restricted
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Fund balance reported above
Other long-term assets, including property taxes receivable, are not available
to pay for current -period expenditures, and therefore, are deferred in
the governmental funds.
Deferred outflows of resources and deferred inflows of resources are created
as a result of various differences related to pensions that are not recognized
in the governmetnal funds.
Deferred inflows of resources related to pensions
Deferred outflows of resources related to pensions
Deferred inflows of resources related to OPEB
Deferred outflows of resources related to OPEB
Long-term liabilties, including bonds payable, compenstated absences, net
pension liability, and other post employment benefits, are not due and payable
in the current period and therefore are not reported in the funds.
Net position of component unit
Totals
Economic Development Authority
Economic
Component Unit
Development
Authority (285)
2020
2019
$ 12,685
$ 12,685
$ 4,596
1,275
1,275
-
956
956
1,031
73,299
73,299
99,741
311,718
311,718
311,718
$ 399,933
$
399,933 $
417,086
14,918
14,918
23,899
5,376
5,376
12,121
366,017
366,017
140,667
-
-
10,000
386,311
386,311
186,687
956
956
1,031
1,275
1,275
-
11,391
11,391
229,368
12,666
12,666
229,368
$ 399,933
$
399,933 $
417,086
$
12,666
956
(6,022)
15,853
(307)
617
(147,818)
$
(124,055)
144
Combining Statement of Revenues,
Expenditures, and Changes in Fund Balances - All Governmental Fund Types -
Economic Development Authority Component Unit
For the Year Ended December 31, 2020
With Compartive Totals for the Year Ended December 31, 2019
Revenues
General property taxes
Intergovernmental
Charges for services
Investment earnings
Interest on loan to primary government
Miscellaneous
Total revenues
Expenditures
Current
General government
Personal services
Commodities
Contractual services
Capital outlay
General government
Total expenditures
Excess of revenues
under expenditures
Fund Balances
Beginning of year
End of year
Net decrease in fund balance reported above
Revenues in the Statement of Activities that do not report current financial
resources are not reported as revenues in the funds
General property taxes unavailable revenue:
At December 31, 2019
At December 31, 2020
Governmental funds recognize pension contributions as expenditures at the time
of payment whereas the Statement of Activities factors in items related to
pensions on a full accrual perspective.
Governmental funds recognize OPEB activity as expenditures at the time
of payment whereas the Statement of Activties factors in items related to
pensions on a full accrual perspective.
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmetnal funds:
Compensated absences:
At December 31, 2019
At December 31, 2020
Change in net position of component unit
Economic
Development
Authority (285)
Totals
2020 2019
$ 125,305
$ 125,305
$ 125,017
14,978
14,978
-
75,000
75,000
3,716,644
8,448
8,448
27,967
805
805
1,263
29,758
29,758
-
254,294
254,294
3,870,891
214,188
214,188
213,832
253
253
-
256,555
256,555
1,774,880
-
-
2,094,334
470,996
470,996
4,083,046
(216,702)
(216,702)
(212,155)
229,368
229,368
441,523
$ 12,666 $
12,666
$ 229,368
$
(216,702)
(1,031)
956
8,168
287
8,705
(10,145)
$ (209,762)
145
%ere p(I d e WO
Cottage
Grove
,,perity Meet
146
SUPPLEMENTARY FINANCIAL INFORMATION
147
City of Cottage Grove
Combined Schedule of Bonded Indebtedness
December 31, 2020
Interest Rate
Dated
Final Payment
Primary Government
General Obligation Bonds
$1,405,000 Tax Increment Bonds of 2004A
3.00%-4.65%
7/1/2004
2/1/2024
$1,405,000 Tax Increament Refunding Bonds of 2014A
2.00%-2.50%
5/29/2014
2/1/2021
$4,660,000 G.O. Refunding Bonds of 2016A
2.00%-3.00%
1/28/2016
2/1/2027
$9,155,000 G.O. CIP Bonds of 2017A
2.50%-3.25%
5/11/2017
2/l/2038
$4,090,000 G.O. CIP Bonds of 2019A
3.00%-4.00%
2/14/2019
2/1/2040
Total General Obligation Bonds
Equipment Certificate
$2,845,000 Equipment Certificate of 2019B
3.00%
2/14/2019
2/1/2029
Special Assessment Debt
Improvement Bonds of 2012A
0.30%-2.20%
3/13/2012
2/l/2027
Improvement Bonds of 2013A
3.00%-3.50%
9/26/2013
2/1/2029
Improvement Bonds of 2015A
2.50%-3.00%
5/27/2015
2/1/2031
Improvement Bonds of2016B
2.00%-2.10%
11/16/2016
2/1/2033
Improvement Bonds of 2018A
3.00%
6/26/2018
2/1/2035
Total Special Assessment Debt with
Governmental Commitment
Total Bonded Indebtedness - Primary Government
Total Bonded Indebtedness - Reporting Entity
Authorized
and Issued
Retired
Outstanding
Principal due Interest due
in 2021 in 2021
$ 1,405,000
$ 520,000
$ 885,000
$ 65,000
$ 39,040
1,405,000
1,205,000
200,000
200,000
2,500
4,660,000
2,110,000
2,550,000
340,000
60,000
9,155,000
700,000
8,455,000
365,000
239,300
4,090,000
-
4,090,000
145,000
135,484
20,715,000
4,535,000
16,180,000
1,115,000
476,324
2,845,000
250,000
2,595,000
255,000
74,025
1,865,000
975,000
890,000
130,000
16,118
7,345,000
2,505,000
4,840,000
475,000
145,740
5,700,000
1,395,000
4,305,000
365,000
115,610
4,275,000
700,000
3,575,000
275,000
69,170
7,620,000
-
7,620,000
410,000
222,450
26,805,000
5,575,000
21,230,000
1,655,000
569,088
50,365,000
10,360,000
40,005,000
3,025,000
1,119,437
$ 50,365,000
$ 10,360,000
$ 40,005,000
$ 3,025,000
$ 1,119,437
149
City of Cottage Grove
Debt Service Payments to Maturity
December 31, 2020
Primary Government
General Obligation
Bonds
Tax Increment
Revenue Bonds
$1,405,000 Tax
$4,660,000
$1,405,000
Tax
Increment
G.O.
$9,155,000
$4,090,000
Increment
Refunding
Total Tax
Refunding
G.O. CIP
G.O. CIP
Total General
Bonds of
Bonds of
Increment
Bonds of
Bonds of
Bonds of
Total Revenue
Obligation
2004A
2014A
Bonds
2016A
2017A
2019A
Bonds
Bonds
Bonds payable
$
885,000
$ 200,000
$
1,085,000
$ 2,550,000
$ 8,455,000
$ 4,090,000
$
15,095,000
$ 16,180,000
Future interest payable
97,465
2,500
99,965
211,400
2,408,300
1,476,240
4,095,940
4,195,905
Totals
$
982,465
$ 202,500
$
1,184,965
$ 2,761,400
$ 10,863,300
$ 5,566,240
$
19,190,940
$ 20,375,905
Payments to maturity
2021
$
104,040
$ 202,500
$
306,540
$ 400,000
$ 604,299
$ 280,484
$
1,284,783
$ 1,591,323
2022
286,872
-
286,872
399,650
603,200
279,584
1,282,434
1,569,306
2023
294,810
-
294,810
394,075
606,725
278,484
1,279,284
1,574,094
2024
296,743
-
296,743
393,275
604,875
277,184
1,275,334
1,572,077
2025
-
-
-
394,050
602,725
280,584
1,277,359
1,277,359
2026
-
-
-
391,500
605,200
278,684
1,275,384
1,275,384
2027
-
-
-
388,850
603,388
276,584
1,268,822
1,268,822
2028
-
-
-
-
607,325
280,134
887,459
887,459
2029
-
-
-
-
605,950
279,359
885,309
885,309
2030
-
-
-
-
603,738
278,434
882,172
882,172
2031
-
-
-
-
605,607
277,359
882,966
882,966
2032
-
-
-
-
602,131
276,134
878,265
878,265
2033
-
-
-
-
602,675
279,684
882,359
882,359
2034
-
-
-
-
602,151
278,009
880,160
880,160
2035
-
-
-
-
601,175
276,040
877,215
877,215
2036
-
-
-
-
599,750
278,486
878,236
878,236
2037
-
-
-
-
602,799
275,484
878,283
878,283
2038
-
-
-
-
599,587
277,234
876,821
876,821
2039
-
-
-
-
-
278,654
278,654
278,654
2040
-
-
-
-
-
279,641
279,641
279,641
Totals
$
982,465
$ 202,500
$
1,184,965
$ 2,761,400
$ 10,863,300
$ 5,566,240
$
19,190,940
$ 20,375,905
150
Primary Government
Equipment Special Assessment Bonds
Certificate Pavement Management
$2,845,000
Equipment
$1,865,000
$7,345,000
$5,700,000
$4,275,000
$7,620,000
Total Pavement
Certificate of
Bonds of
Bonds of
Bonds of
Bonds of
Bonds of
Management
2019B
2012A
2013A
2015A
2016B
2018A
Bonds
$ 2,595,000
$ 890,000
$
4,840,000
$ 4,305,000
$
3,575,000
$ 7,620,000
$ 21,230,000
365,775
60,983
741,246
663,350
455,700
1,839,900
3,761,179
$ 2,960,775
$ 950,983
$
5,581,246
$ 4,968,350
$
4,030,700
$ 9,459,900
$ 24,991,179
$ 329,025
$ 146,118
$
620,740
$ 480,610
$
344,170
$ 632,450
$ 2,224,088
331,225
144,005
621,265
474,585
338,670
630,000
2,208,525
328,200
146,685
621,340
473,335
343,070
632,175
2,216,605
329,950
149,070
620,965
461,935
337,370
633,900
2,203,240
326,475
146,200
620,140
460,385
331,670
630,250
2,188,645
327,775
148,135
618,590
459,535
325,970
631,225
2,183,455
328,775
70,770
620,944
449,535
325,220
631,750
2,098,219
329,475
-
616,587
443,966
319,420
631,825
2,011,798
329,875
-
620,675
442,691
313,620
631,450
2,008,436
-
-
-
431,383
312,770
630,625
1,374,778
-
-
-
390,390
311,820
629,350
1,331,560
-
-
-
-
305,670
627,625
933,295
-
-
-
-
121,260
630,375
751,635
-
-
-
-
-
627,600
627,600
-
-
-
-
-
629,300
629,300
$ 2,960,775
$ 950,983
$
5,581,246
$ 4,968,350
$
4,030,700
$ 9,459,900
$ 24,991,179
151
%ere Pcldp- V6
Cottage
Grove
V,jcV.$Ptfity meet
152
Year of Tax
Levy/Collection
City of Cottage Grove
Deferred Tax Levies
December 31, 2020
Special Assessment Bonds
Pavement Management
$1,865,000 $7,345,000 $5,700,000 $4,275,000 $7,620,000 Total Special
Bonds of Bonds of Bonds of Bonds of Bonds of Assessment
2012A 2013A 2015A 2016B 2018A Bonds
2020/21 $
82,638
$ 411,150
$ 319,863
$ 192,598
$ 381,079
$ 1,387,328
2021/22
85,567
411,466
323,765
201,117
383,599
1,405,514
2022/23
88,266
411,308
316,853
198,926
385,646
1,400,999
2023/24
85,326
410,678
320,440
196,736
381,971
1,395,151
2024/25
87,489
409,576
323,712
194,545
383,231
1,398,553
2025/26
42,424
412,673
318,269
197,604
384,019
1,354,989
2026/27
-
409,271
318,076
195,308
384,334
1,306,989
2027/28
-
414,022
321,939
193,013
384,176
1,313,150
2028/29
-
-
315,014
195,967
383,546
894,527
2029/30
-
-
328,911
198,816
382,444
910,171
2030/31
-
-
-
196,310
380,868
577,178
2031/32
-
-
-
70,082
384,071
454,153
2032/33
-
-
-
-
381,393
381,393
2033/34
-
-
-
-
383,493
383,493
Totals $
471,710
$ 3,290,144
$ 3,206,842
$ 2,231,022
$ 5,363,870
$ 14,563,588
153
City of Cottage Grove
Subcombining Balance Sheet -
Pavement Management Debt Service Schedule
December 31, 2020
With Comparative Totals for December 31, 2019
Assets
Cash and investments
Taxes receivable - delinquent
Special assessments receivable
Deferred
Delinquent
Special deferred
Total assets
Liabilities
Accounts payable
Deferred Inflows of Resources
Unavailable revenue - property taxes
Unavailable revenue - special assessments
Total deferred inflows of resources
Fund Balances
Restricted
Total liabilities, deferred inflows of
resources, and fund balances
G.O.
G.O.
G.O.
G.O.
Improvement
Improvement
Improvement
Improvement
Bonds 2012A
Bonds 2013A
Bonds 2015A
Bonds 2016B
(490)
(491)
(492)
(493)
$ 265,114
$ 386,392
$ 937,474
$ 290,520
564
2,280
1,261
692
134,149
666,237
741,097
593,344
-
545
1,287
906
-
695
5,767
9,011
$ 399,827
$ 1,056,149
$ 1,686,886
$ 894,473
$ 500
$ -
$ -
$ -
564
2,280
1,261
692
134,149
667,477
748,151
603,261
134,713
669,757
749,412
603,953
264,614
386,392
937,474
290,520
$ 399,827
$ 1,056,149
$ 1,686,886
$ 894,473
154
Totals
Pavement Management Debt
Service Schedule
2020 2019
$ 1,879,500 $ 2,215,574
4,797 4,792
2,134,827 2,567,907
2,738 4,770
15,473 19,726
$ 4,037,335 $ 4,812,769
500
4,797 4,792
2,153,038 2,592,403
2,157,835 2,597,195
1,879,000 2,215,574
$ 4,037,335 $ 4,812,769
155
City of Cottage Grove
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
Pavement Management Debt Service Schedule
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
General property taxes
Special assessments
Investment earnings
Total revenues
Expenditures
Current
General government
Debt service
Principal
Interest and other charges
Total expenditures
Net change in fund balances
Fund Balances
Beginning of year
End of year
G.O. G.O. G.O.
Improvement Improvement Improvement
Bonds 2012A Bonds 2013A Bonds 2015A
(490) (491) (492)
$ 70,193 $ 300,723 $ 200,287
44,657 155,039 232,851
2,783 1,213 9,831
117,633 456,975 442,969
1,560 1,988 6,487
130,000 465,000 355,000
18,003 159,840 126,410
149,563 626,828 487,897
(31,930) (169,853) (44,928)
296,544 556,245 982,402
$ 264,614 $ 386,392 $ 937,474
156
G.O.
Improvement
Bonds201613
(493)
Totals
Pavement Management Debt
Service Schedule
2020 2019
$ 150,024
$ 721,227
$ 669,475
109,681
542,228
599,727
1,714
15,541
40,426
261,419
1,278,996
1,309,628
1,612
11,647
5,732
275,000
1,225,000
1,205,000
74,670
378,923
412,295
351,282
1,615,570
1,623,027
(89,863)
(336,574)
(313,399)
380,383
2,215,574
2,528,973
$ 290,520 $ 1,879,000 $ 2,215,574
157
City of Cottage Grove
Subcombining Balance Sheet -
Tax Increment Construction Revolving Schedule
December 31, 2020
With Comparative Totals for December 31, 2019
TIF 1-12 (532,
TIF 1-8 (533)
534)
TIF 1-15 (529)
TIF 1-16 (528)
Assets
Cash and investments
$ 403,909
$ 966,024
$ 14,777
$ 2,658
Taxes receivable - delinquent
-
5,144
-
-
Total assets
$ 403,909
$ 971,168
$ 14,777
$ 2,658
Liabilities
Accounts payable
-
-
-
-
Interfundloan payable
-
-
368,816
212,687
Total liabilities
-
-
368,816
212,687
Deferred Inflows of Resources
Unavailable revenue - tax increment
-
5,144
-
-
Fund Balances
Restricted
403,909
966,024
-
-
Unassigned
-
-
(354,039)
(210,029)
Total fund balances
403,909
966,024
(354,039)
(210,029)
Total liabilities, deferred
inflows of resources, and
fund balances
$ 403,909
$ 971,168
$ 14,777
$ 2,658
158
Totals
TIF Revolving Capital
TIF 1-17 Reconciliation Project Schedule
Dominium to Nomnajor
(540) TIF 1- 18 (542) Fund 2020 2019
$ 4 $ 1,796 $ - $ 1,389,168 $ 1,301,976
- - - 5,144 2,802
$ 4 $ 1,796 $ - $ 1,394,312 $ 1,304,778
32,268 17,476
32,268 17,476
- - 1,114
- 631,247 729,832
631,247 730,946
- 5,144 2,802
(612,012) 757,921 571,030
(32,264) (15,680) 612,012 - -
(32,264) (15,680) - 757,921 571,030
$ 4 $ 1,796 $ - $ 1,394,312 $ 1,304,778
159
City of Cottage Grove
Subcombining Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Tax Increment Construction Revolving Schedule
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Tax increment collections
Investment earnings
Total revenues
Expenditures
Current
Economic development
Debt service
Interest and other charges
Total expenditures
Net change in fund balances
Fund Balances
Beginning of year
End of year
TIF 1-12 (532,
TIF 1-8 (533) 534) TIF 1-15 (529) TIF 1-16 (528)
$ - $ 286,029 $ 69,202 $ 47,438
12,064 285 46
- 298,093 69,487 47,484
- 186,249 282 583
- 12,758 7,506
186,249 13,040 8,089
- 111,844 56,447 39,395
403,909 854,180 (410,486) (249,424)
$ 403,909 $ 966,024 $ (354,039) $ (210,029)
f role]
TIF 1-17
Dominium
(540) TIF 1-18 (542)
Totals
TIF Revolving Capital
Project Schedule
2020 2019
$ 229,935 $ 15,315 $ 647,919 $ 765,358
37 - 12,432 13,982
229,972 15,315 660,351 779,340
254,830 9,621 451,565 293,232
1,017 614 21,895 23,903
255,847 10,235 473,460 317,135
(25,875) 5,080 186,891 462,205
(6,389) (20,760) 571,030 108,825
$ (32,264) $ (15,680) $ 757,921 $ 571,030
161
Assets
Cash and investments
Liabilities
Interfund loan payable
Fund Balances
Restricted
Unassigned
Total fund balances
Total liabilities and
fund balances
City of Cottage Grove
Subcombining Balance Sheet -
TIF Debt Service Revolving Schedule
December 31, 2020
With Comparative Totals for December 31, 2019
Totals
TIF Debt Service
Revolving Schedule
2014A Taxable
2014A Exempt Tax Increment
Increment Refunding
Bonds TIF 1- Bonds TIF 1-
12 (338) 12 (341) 2020 2019
$ 112,093 $ 242,646 $ 354,739 $ 6,490
$ - $ 30,032 $ 30,032 $ 30,032
112,093 212,614 324,707 -
- - - (23,542)
112,093 212,614 324,707 (23,542)
$ 112,093 $ 242,646 $ 354,739 $ 6,490
162
City of Cottage Grove
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
TIF Debt Service Revolving Schedule
For the Year Ended December 31, 2020
With Comparative Totals for the Year Ended December 31, 2019
Revenues
Tax increment collections
Investment earnings
Total revenues
Expenditures
Current
Economic development
Debt service
Principal retirement
Interest and other charges
Total expenditures
Excess of revenues over
(under) expenditures
Fund Balances
Beginning of year
End of year
Totals
TIF Debt Service
Revolving
Schedule
2004A Tax
2014A Taxable
Exempt
Tax Increment
Increment
Refunding
Bonds TIF 1-
Bonds TIF 1-
12(338)
12(341)
2020
2019
$ 185,240
$ 488,500
$ 673,740
$ 320,000
121
279
400
79
185,361
488,779
674,140
320,079
919
1,152
2,071
14,872
35,000
240,000
275,000
260,000
41,240
7,580
48,820
55,190
77,159
248,732
325,891
330,062
108,202
240,047
348,249
(9,983)
3,891
(27,433)
(23,542)
(13,559)
$ 112,093
$ 212,614
$ 324,707
$ (23,542)
163
%ere Pcldp- V6
Cottage
Grove
V,jcV.$Ptfity meet
164
STATISTICAL SECTION (UNAUDITED)
165
City of Cottage Grove
Statistical Section (Unaudited)
This part of the City of Cottage Grove' comprehensive annual 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.
Financial Trends
These schedules contain trend information to help the reader understand how the government's
financial performance and well-being have changed over time.
Table 1 — Net Position by Component
Table 2 — Changes in Net Position
Table 3 — Fund Balances of Governmental Funds
Table 4 — Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant local
revenue source, property taxes.
Table 5 — Assessed and Estimated Actual Value of Taxable Property
Table 6 — Property Tax Rates Direct and Overlapping Governments
Table 7 — Principal Property Taxpayers
Table 8 — Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's
current level of outstanding debt and the government's ability to issue additional debt in the future.
Table 9 — Ratios of Outstanding Debt by Type
Table 10 — Ratios of General Bonded Debt Outstanding
Table 11 — Direct and Overlapping Governmental Activities Debt
Table 12 — Legal Debt Margin Information
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government's financial activities take place.
Table 13 — Demographic and Economic Statistics
Table 14 — Principal Employers
.:
City of Cottage Grove
Statistical Section (Unaudited) (Continued)
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government provides and
activities itperforms.
Table 15 — Full-time Equivalent City Government Employees by Function
Table 16 — Operating Indicators by Function/Program
Table 17 — Capital Asset Statistics by Function/Program
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
167
City of Cottage Grove
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2011 2012 2013 2014 2015
Governmental activities
Net investment in capital assets
$ 109,696,916
$120,412,875
$124,156,059
$127,260,042
$125,562,970
Restricted
4,282,305
4,210,913
7,187,948
6,971,432
8,766,706
Unrestricted
34,625,010
25,024,447
25,908,617
28,277,397
24,285,174
Total governmental activities net position
$ 148,604,231
$149,648,235
$157,252,624
$162,508,871
$158,614,850
Business -type activities
Net investment in capital assets $ 53,664,161 $ 53,225,445 $ 51,453,195 $ 54,432,059 $ 54,202,710
Restricted 325,460 - - - -
Unrestricted 13,236,680 14,645,490 16,792,024 15,896,363 13,980,970
Total business -type activities net position $ 67,226,301 $ 67,870,935 $ 68,245,219 $ 70,328,422 $ 68,183,680
Primary Government
Net investment in capital assets
$163,361,077
$173,638,320
$175,609,254
$181,692,101
$179,765,680
Restricted
4,607,765
4,210,913
7,187,948
6,971,432
8,766,706
Unrestricted
47,861,690
39,669,937
42,700,641
44,173,760
38,266,144
Total primary government net position
$ 215,830,532
$217,519,170
$225,497,843
$232,837,293
$226,798,530
�:
Fiscal Year
2016 2017 2018 2019 2020
$ 132,834,867 $ 140,298,832 $ 152,256,234 $ 173,846,256 $ 198,383,059
7,609,138 2,855,507 6,177,599 5,199,682 7,959,917
19,091,443 24,845,782 21,252,792 24,697,514 25,127,751
$ 159,535,448 $ 168,000,121 $ 179,686,625 $ 203,743,452 $ 231,470,727
$ 54,063,470 $ 56,060,163 $ 63,822,257 $ 70,373,534 $ 75,408,885
$ 67,691,486 $ 67,589,004 $ 75,529,977 $ 83,116,269 $ 89,105,482
$ 186,898,337 $ 196,358,995 $ 216,078,491 $ 244,219,790 $ 273,791,944
7,609,138 2,855,507 6,177,599 5,199,682 7,959,917
32,719,459 36,374,623 32,960,512 37,440,249 38,824,348
$ 227,226,934 $ 235,589,125 $ 255,216,602 $ 286,859,721 $ 320,576,209
Table 1
169
City of Cottage Grove
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities
General government
Regular operations
Land Sales
Payment to component unit
Community development
Economic development
Public safety
Public works
Culture and recreation
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Golf course
Street lights
Cottage Grove EMS
Water operating
Sewer operating
Total business -type activities
Total primary government expenses
Program Revenues
Governmental activities
Charges for services
General government
Regular operations
Land sales
Community development
Economic development
Public safety
Public works:
Regular operations
Construction
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities
Charges for services
Golf course
Street lights
Cottage Grove EMS
Water operating
Sewer operating
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Fiscal Year
�nll 7n17 7nlZ
$ 2,985,571 $ 2,997,825 $ 2,270,332
-
-
903,180
1,110,214
362,009
61,302
6,252,530
7,069,301
6,949,225
6,688,115
6,609,111
8,121,230
2,948,075
3,059,273
4,768,181
846,258
827,645
976,891
')n Rzn 'uz
?n 0?s 1 All
M nsn gal
1,504,006 1,614,321
625,312
659,869
742,410
1,038,972
1,109,809
1,322,635
1,901,985
2,049,877
2,341,555
2,223,749
2,242,778
2,278,958
7,294,024
7,676,654
6,685,558
$ 28,124,787 $ 28,601,818 $ 30,735,899
$ 764,185 $ 883,272 $ 238,721
- - 19115,203
175 210 7,626
444,039 429,646 353,130
845,315 880,095 797,432
1,024,516 1,026,685 2,413,744
1,084,928 1,075,529 1,211,506
f l i R cnl, 2 AAA 701 In 2'M 077
1,399,204 1,566,035
532,607
540,696
580,837
1,114,226
1,528,756
1,569,017
2,249,926
2,773,937
2,369,570
2,208,014
2,207,363
2,175,479
')A7 nlc _ 1 nCl 1;27
$ 17,053,146 $ 15,976,516 $ 24,254,769
170
Fidcal Year
2014 2015 2016 2017 2018 2019 2020
$ 2,229,518
$ 2,346,805
$ 3,450,479
$ 2,398,669
$ 2,573,693
$ 2,704,159
$ 5,621,197
946,001
1,086,197
1,173,071
1,527,549
1,626,960
1,524,566
1,750,768
545,646
1,460,114
2,257,548
740,668
275,927
492,107
583,767
7,212,998
7,662,393
10,153,726
9,308,430
9,353,309
9,272,317
6,947,733
7,599,182
7,426,045
9,623,335
8,413,073
8,559,929
10,062,896
13,650,476
5,119,093
5,153,844
5,340,558
5,137,951
5,035,903
5,566,175
5,638,642
808,642
1,029,228
875,642
962,772
1,037,986
1,286,632
1,141,147
24,461,080
26,164,626
32,874,359
28,489,112
28,463,707
30,908,852
35,333,730
867,690
746,794
746,005
882,660
991,041
1,073,480
1,152,326
1,412,855
1,507,766
1,688,041
1,571,044
1,605,779
1,750,771
1,843,840
2,216,819
2,438,166
2,370,466
2,789,792
2,980,080
2,904,174
3,039,639
2,428,944
2,448,283
2,727,188
2,879,119
2,881,446
3,139,150
3,463,493
6,926,308
7,141,009
7,531,700
8,122,615
8,458,346
8,867,575
9,499,298
$ 31,387,388
$ 33,305,635
$ 40,406,059
$ 36,611,727
$ 36,922,053
$ 39,776,427
$ 44,833,028
$ 138,768
$ 117,636
$ 665,193
$ 108,808
$ 319,999
$ 196,283
$ 193,964
989,140
1,527,836
1,660,365
2,240,628
1,758,096
2,424,030
2,648,715
1,771
3,467
5,210
210
210
572,983
400,210
325,368
394,574
431,862
363,782
360,609
409,463
764,732
1,010,695
971,599
975,532
1,099,690
3,932,082
3,106,452
1,095,238
2,448,968
3,091,072
2,725,288
2,682,090
3,376,799
3,094,394
2,578,312
1,545,268
1,237,805
1,676,805
1,408,099
3,710,686
2,231,407
17,726,027
9,401,775
5,861,631
10,284,047
13,805,696
13,899,381
29,783,591
20,144,097
15,861,753
13,205,620
18,424,302
21,709,003
27,357,862
41,818,603
45,551,295
658,810
549,005
530,905
685,560
821,512
825,587
962,958
1,626,320
1,431,007
1,766,236
1,510,101
2,006,555
2,066,733
1,772,704
1,868,942
1,840,088
1,817,862
1,664,292
2,144,652
2,537,654
3,002,920
2,151,756
2,310,624
2,291,038
2,294,714
2,685,608
3,064,703
3,190,196
-
-
-
-
2,350
23,409
101,196
1,783,762
361,762
196,671
441,738
4,488,437
2,700,615
3,842,839
8,089,590
6,492,486
6,602,712
6,596,405
12,149,114
11,218,701
12,872,813
$ 23,951,343
$ 19,698,106
$ 25,027,014
$ 28,305,408
$ 39,506,976
$ 53,037,304
$ 58,424,108
Table 2
171
City of Cottage Grove
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2011
2012
2013
Net (Expense)/Revenue
Governmental activities
$(11,549,059)
$(13,565,435)
$ (7,542,007)
Business -type activities
477,418
940,133
1,060,877
Total primary government net expense
$(11,071,641)
$(12,625,302)
$ (6,481,130)
General Revenues and Other Changes in Net Position
Governmental activities
Property taxes
$ 11,494,758
$ 12,330,135
$ 12,096,046
Franchise taxes
535,188
537,682
540,767
Aggregate taxes
26,131
26,180
26,135
Tax increment collections
946,603
892,438
939,314
Grants and contributions not restricted to specific programs
26,146
29,742
29,060
Unrestricted investment earnings (loss)
624,785
368,821
(149,614)
Gain on sale of capital assets
12,342
10,546
3,997
Transfers
438,800
413,895
375,266
Special item -golf course loan forgiveness
-
-
1,020,000
Total governmental activities
14,104,753
14,609,439
14,880,971
Business -type activities
Grants and contributions not restricted to specific programs
-
-
-
Unrestricted investment earnings (loss)
162,296
118,396
(45,902)
Gain on sale of capital assets
-
-
-
Transfers
(438,800)
(413,895)
(375,266)
Total business -type activities
(276,504)
(295,499)
(421,168)
Total primary government
$ 13,828,249
$ 14,313,940
$ 14,459,803
Change in Net Position
Governmental activities
$ 2,555,694
$ 1,044,004
$ 7,338,964
Business -type activities
200,914
644,634
639,709
Total primary government
$ 2,756,608
$ 1,688,638
$ 7,978,673
Notes: (1) Community Development is in General Government in 2011 & 2012.
(2) Golf Course reclassified to a special revenue fund in 2013. 172
Fidcal Year
1n1A 1n- 1n" 1n1 ^I 1n10 1n- I-
$ (8,599,327) $(12,959,006) $(14,450,057) $ (6,780,109) $ (1,105,845) $ 10,909,751 $ 10,217,565
1,163,282 (648,523) (928,988) (1,526,210) 3,690,768 2,351,126 3,373,515
$ (7,436,045) $(13,607,529) $(15,379,045) $ (8,306,319) $ 2,584,923 $ 13,260,877 $ 13,591,080
$
12,616,267
$
13,394,585
$
13,956,582
$
14,483,061
$ 15,171,020
$ 15,608,602
$ 16,881,359
542,689
526,643
516,931
560,492
567,875
583,715
596,537
26,236
37,133
39,748
28,442
20,791
22,250
22,699
711,628
710,541
776,061
1,002,046
769,475
1,085,358
1,321,659
83,682
99,137
126,058
126,670
-
113,435
181,316
551,910
357,170
285,494
330,903
519,675
982,812
582,781
43,904
(15,157)
-
-
71,631
49,186
34,579
(720,742)
613,878
(330,219)
(1,286,832)
(4,126,962)
(4,973,641)
(2,435,861)
13,855,574
15,723,930
15,370,655
15,244,782
12,993,505
13,471,717
17,185,069
-
-
7,736
17,161
-
-
-
199,179
137,896
96,851
119,735
152,466
261,525
179,837
-
-
1,988
-
-
-
-
720,742
(613,878)
330,219
1,286,832
4,126,962
4,973,641
2,435,861
919,921
(475,982)
436,794
1,423,728
4,279,428
5,235,166
2,615,698
$
14,775,495
$
15,247,948
$
15,807,449
$
16,668,510
$ 17,272,933
$ 18,706,883
$ 19,800,767
$
5,256,247
$
2,764,924
$
920,598
$
8,464,673
$ 11,887,660
$ 24,381,468
$ 27,402,634
2,083,203
(1,124,505)
(492,194)
(102,482)
7,970,196
7,586,292
5,989,213
$
7,339,450
$
1,640,419
$
428,404
$
8,362,191
$ 19,857,856
$ 31,967,760
$ 33,391,847
Continued
Table 2
173
City of Cottage Grove
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2011
2012
2013
2014
2015
General Fund
Reserved
$ -
$
-
$
-
$
-
$
-
Unreserved
-
-
-
-
-
Nonspendable
Prepaid items
24,382
5,764
13,175
18,019
15,383
Assigned
1,611,427
1,695,203
1,443,243
1,380,698
1,408,357
Unassigned
7,178,108
7,449,565
7,775,548
8,113,424
8,829,697
Total general fund
$ 8,813,917
$
9,150,532
$
9,231,966
$
9,512,141
$
10,253,437
All other Governmental Funds
Reserved reported in
Special Revenue Funds
$ -
$
-
$
-
$
-
$
-
Debt Service Funds
-
-
-
-
-
Capital Projects Funds
-
-
-
-
-
Unreserved reported in
Special Revenue Funds
-
-
-
-
-
Debt Service Funds
-
-
-
-
-
Capital Projects Funds
-
-
-
-
-
Nonspendable
Prepaid items
938
938
10,229
8,529
7,343
Inventory
-
-
31,617
24,434
20,696
Restricted
3,445,145
2,997,220
4,347,850
4,478,812
4,857,365
Committed
833,500
560,321
416,027
329,841
394,204
Assigned
21,540,577
20,240,161
22,936,733
25,591,181
26,322,717
Unassigned
(2,174,299)
(9,521,907)
(10,379,965)
(10,958,389)
(9,122,473)
Total all other governmental funds
$ 23,645,861
$
14,276,733
$
17,362,491
$
19,474,408
$
22,479,852
Total all funds
$ 32,459,778
$
23,427,265
$
26,594,457
$
28,986,549
$
32,733,289
Notes:
The implementation of Governmental Accounting Standards Board Statement No. 54 in 2011 resulted in a significant change in the City's
fund balance calssifications.
174
Fiscal Year
2016
2017
2018
2019
2020
11,222
8,750
47,532
33,719
27,042
1,393,200
1,589,169
1,383,065
1,432,671
1,768,606
9,036,425
9,233,073
9,814,949
10,224,988
10,479,728
$ 10,440,847
$
10,830,992
$
11,245,546
$
11,691,378
$
12,275,376
5,723
2,827
10,889
14,933
33,818
28,750
30,625
30,297
25,601
28,265
3,200,692
3,306,203
3,515,300
3,876,020
4,969,881
731,090
947,486
1,383,402
1,736,590
2,136,969
23,020,349
21,301,562
19,445,494
19,583,736
21,455,576
(10,240,496)
(5,511,868)
(5,804,056)
(7,464,138)
(9,643,235)
$ 16,746,108
$
20,076,835
$
18,581,326
$
17,772,742
$
18,981,274
$ 27,186,955
$
30,907,827
$
29,826,872
$
29,464,120
$
31,256,650
Table 3
175
City of Cottage Grove
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Revenues
General property taxes
Other taxes
Special assessments
Licenses and permits
Direct charges to developers
Intergovernmental
Charges for services
Rent
Fines and forfeits
Investment earnings (loss)
Interest on interfund loan
Connection charges
Park dedication fees
Miscellaneous
Total revenues
Expenditures
Current
General government
Community development
Economic development
Public safety
Public works
Culture and recreation
Capital outlay
Debt Service
Principal retirement
Capital lease payment
Interest and fiscal charges
Total expenditures
Excess revenues over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Bonds issued
Premium on debt issued
Discount on debt Issued
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Fiscal Year
2011 2012 2013 2014
$ 11,539,640 $
12,367,978 $
12,081,764 $
12,687,917
1,507,922
1,456,300
1,513,749
1,292,229
1,875,486
1,153,019
1,575,736
1,326,017
593,272
831,687
860,954
904,400
101,913
16,555
2,106,723
661,861
3,879,411
2,684,040
4,642,768
3,932,021
2,494,018
2,467,187
4,023,844
3,572,351
-
-
-
435,975
246,753
198,022
188,657
171,317
448,782
196,879
(173,267)
452,293
144,500
155,301
47,025
59,066
322,009
282,265
805,261
841,434
62,198
41,990
252,386
63,595
595,218
601,255
705,409
1,005,867
23,811,122
22,452,478
28,631,009
27,406,343
2,942,106
2,689,156
2,071,272
2,025,709
-
-
892,699
919,126
793,046
491,040
151,562
541,838
5,827,572
6,151,677
6,297,323
6,484,552
3,774,559
4,059,582
4,271,651
4,306,068
2,326,733
2,387,655
3,954,968
4,169,469
10,877,928
15,420, 808
12,274, 561
5,028,422
7,135,000
1,335,000
950,000
2,470,000
245,000
250,000
293,953
305,076
906,910
849,046
769,129
882,508
34,828,854
33,633,964
31,927,118
27,132,768
(11,017,732)
(11,181,486)
(3,296,109)
273,575
3,052,403
2,171,149
759,446
1,840,995
(3,048,803)
(1,881,870)
(638,374)
(1,213,059)
-
1,865,000
7,345,000
1,405,000
-
211,507
18,461
-
(15,852)
-
-
12,344
10,546
27,195
67,120
15,944
2,148,973
7,704,774
2,118,517
$ (11,001,788) $ (9,032,513) $
34.6% 13.4%
4,408,665 $ 2,392,092
10.2% 16.5%
Note: (1) Community Development is in General Government in 2011 & 2012 176
Fiscal Year
2015
2016
2017
2018
2019
2020
$ 13,465,987 $
13,957,128 $
14,649,224 $
15,166,368 $
15,631,133 $
16,887,233
1,274,317
1,332,740
1,402,475
1,358,141
1,691,323
1,940,895
1,499,796
2,004,196
2,715,466
2,482,866
4,282,185
6,085,906
1,305,442
1,323,680
1,922,934
1,773,543
2,277,642
2,480,933
307,971
277,860
273,200
132,385
299,683
444,907
2,415,754
5,642,451
8,077,051
5,283,405
17,716,725
20,635,136
3,808,618
4,061,301
4,140,390
4,903,311
4,988,080
5,062,505
450,428
464,078
435,688
486,270
474,994
492,206
228,642
236,260
184,942
208,744
220,024
141,380
262,799
219,963
310,579
460,856
924,396
527,309
74,340
52,040
52,206
26,474
23,903
21,895
318,092
649,489
2,050,958
2,776,937
1,932,844
2,563,422
9,010
212,865
526,936
853,659
472,500
1,110,209
1,138,274
1,864,861
1,982,338
2,024,992
1,870,544
1,151,221
26,559,470
32,298,912
38,724,387
37,937,951
52,805,976
59,545,157
2,155,327
3,143,136
2,200,031
2,453,986
2,488,722
5,122,412
1,058,537
1,117,760
1,304,601
1,594,534
1,486,081
1,753,836 (1)
1,456,306
2,236,464
695,356
230,615
447,061
539,092
6,751,804
7,447,058
7,798,262
8,660,273
8,535,996
8,186,255
4,344,837
4,133,659
3,900,347
4,066,609
4,769,732
6,257,352
4,154,992
4,438,628
4,303,051
4,627,375
5,013,805
4,646,429
7,036,802
17,201,219
22,426,545
20,919,610
34,786,137
28,300,835
1,320,000
6,570,000
1,915,000
3,595,000
2,420,000
2,435,000
316,235
327,432
-
-
-
-
912,107
1,023,721
900,240
1,123,547
1,253,185
1,352,629
29,506,947
47,639,077
45,443,433
47,271,549
61,200,719
58,593,840
(2,947,477)
(15,340,165)
(6,719,046)
(9,333,598)
(8,394,743)
951,317
3,049,657
1,648,258
7,111,644
5,149,453
5,308,513
5,094,561
(2,362,952)
(1,162,564)
(6,135,532)
(4,649,003)
(4,486,763)
(4,267,119)
5,700,000
8,935,000
9,155,000
7,620,000
6,935,000
-
254,245
357,684
289,321
111,630
239,309
-
53,267
15,453
19,485
20,563
35,932
13,771
6,694,217
9,793,831
10,439,918
8,252,643
8,031,991
841,213
$ 3,746,740 $
(5,546,334) $
3,720,872 $
(1,080,955) $
(362,752) $
1,792,530
11.3%
26.0%
12.2%
17.9%
13.9%
11.9%
Table 4
177
City of Cottage Grove
Assessed and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Residential
Payable
Residential
Commercial
Agricultural
Non -homestead
Personal
Year
Property
Property
Property
and Other
Property
2020
$ 28,432,495
$ 6,692,191
$ 744,506
$ 3,955,352
$ 758,254
2019
26,295,544
6,402,547
764,841
3,320,374
775,659
2018
23,982,857
6,113,919
747,876
3,020,198
789,240
2017
22,141,063
5,623,028
785,628
2,740,566
716,347
2016
21,377,754
5,203,657
767,424
2,749,793
678,862
2015
20,730,170
5,093,035
776,575
2,609,305
633,787
2014
18,114,214
5,001,690
761,279
2,207,013
622,578
2013
17,241,606
5,076,716
700,036
1,920,395
612,076
2012
19,042,270
5,094,236
724,887
2,010,313
568,078
2011
21,316,906
5,120,056
778,196
2,003,968
550,999
Source: Washington County
Notes:
(1) The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the
estimated market value of the property.
178
Taxable
Total Taxable
Assessed
Estimated
Real and
Fiscal Disparity
Total Adjusted
Value as a
Actual Taxable
Personal
Contribution (Net)
Taxable
Percentage of
Market
Total Direct
Property
and TIF
Value
Taxable Value
Value
Tax Rate
$ 40,582,798
$ 2,746,520
$ 43,329,318
1.17%
$ 3,691,869,400
39.182
37,558,965
4,619,334
42,178,299
1.24%
3,407,440,600
38.959
34,654,090
4,094,931
38,749,021
1.24%
3,125,587,600
40.580
32,006,632
3,967,785
35,974,417
1.25%
2,889,152,300
43.010
30,777,490
3,557,397
34,334,887
1.23%
2,790,852,600
43.140
29,842,872
3,544,899
33,387,771
1.23%
2,705,975,400
41.591
26,706,774
2,264,989
28,971,763
1.21%
2,396,493,700
43.812
25,550,829
2,134,831
27,685,660
1.22%
2,277,900,700
45.046
27,439,784
2,626,702
30,066,486
1.22%
2,464,372,900
41.446
29,770,125
2,775,315
32,545,440
1.21%
2,695,641,900
38.255
Table 5
179
City of Cottage Grove
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
City Direct Rate(1) Overlapping Rates
Total City
Year General Debt Service Direct Rate
2020
33.645
5.537
39.182
2019
35.025
3.933
38.958
2018
36.509
4.075
40.583
2017
40.156
2.856
43.012
2016
40.422
2.717
43.139
2015
38.886
2.705
41.591
2014
40.976
2.836
43.812
2013
42.665
2.381
45.046
2012
39.065
2.381
41.446
2011
34.500
3.755
38.255
Washington
School
Total
County
District (2)
Other (4)
Overlapping
28.944
33.904
2.382
65.230
29.682
34.926
3.994
68.602
29.983
33.303
4.175
67.461
30.448
34.309
4.345
69.101
30.564
36.812
4.568
71.944
30.186
35.675
4.182
70.043
32.811
39.169
5.401
77.381
34.225
41.285
5.637
81.147
31.939
37.894
5.139
74.972
29.772
35.216
4.715
69.703
Source: Washington County
Overlapping rates are those of local and county governments that apply to property owners within the City of Cottage Grove.
Not all overlapping rates apply to all City of Cottage Grove property owners.
(1) The City Direct Rate is the Urban based rate.
(2) Independent School District 833
(4) Includes Metropolitan Transit Commission, Metropolitan Council, and South Washington Watershed
Table 6
Total Direct
and
Overlapping
Tax Rate
104.412
107.560
108.044
112.113
115.083
111.634
121.193
126.193
116.418
107.958
ff
City of Cottage Grove
Prinipcal Property Taxpayers
Current year and nine years ago
Table 7
2020
2011
Percentage
Percentage
of Total
of Total
City
City
Net Tax
Tax
Net Tax
Tax
Capacity
Capacity
Capacity
Capacity
Taxpayer
Value
Rank
Value
Value
Rank
Value
Xcel Energy/NSP
$ 768,528
1
1.77%
$ 498,712
2
1.53%
3M Company
712,458
2
1.64%
639,064
1
1.96%
Hinton Heights -Minneapolis LLC
422,201
3
0.97%
-
-
PHS/Cottage Grove Inc
402,843
4
0.93%
176,591
4
0.54%
Mars II Inc.
353,980
5
0.82%
170,584
6
0.52%
Renewal by Andersen Corporation
291,818
6
0.67%
175,510
5
0.54%
Wal-Mart Real Estate Business Trust
261,480
7
0.60%
-
-
North Star Sheets LLC
254,170
8
0.59%
-
0.00%
MN Pipeline Co
219,490
9
0.51%
-
-
Exchangeright Net Leased Portfolio 27
207,442
10
0.48%
-
-
Menard Inc.
-
-
193,170
3
0.59%
Dayton -Hudson Corporation
-
-
160,496
7
0.49%
Grove -Rainbow LP
-
-
135,516
8
0.42%
Wer Dis LLC
-
-
131,250
9
0.40%
Kohl's Illinois Inc & Kohl's Dept Stores Inc
-
-
126,972
10
0.39%
Total
$ 3,894,410
8.99%
$ 2,407,865
7.40%
Source: Washington County 181
City of Cottage Grove
Property Tax Levies and Collections
Last Ten Fiscal Years
Taxes Levied for the Fiscal Year
Fiscal
Gross Operating
Debt
MVHC/
Year
Tax Levy
Tax Levy
Ag Credit (1)
2020
$14,557,824
$ 2,397,500
$ (6,788) $
2019
14,100,682
1,590,000
(7,213)
2018
13,700,988
1,535,000
(7,072)
2017
13,798,587
985,000
(8,890)
2016
13,174,084
890,000
(9,707)
2015
12,526,600
875,500
(8,722)
2014
11,873,130
826,000
(5,947)
2013
11,585,100
656,150
(5,354)
2012
11,683,300
557,950
(4,762)
2011
11,035,100
1,206,150
(4,350)
State Aid
(690,152)
Total Net
Tax Levy
$16,948,536
15,683,469
15,228,916
14,774,697
14,054,377
13,393,378
12,693,183
12,235,896
12,236,488
11,546,748
Notes:
(1) In 2009 a property tax classification appeal for one property owner resulted in a large abatement.
Collected within the
Fiscal Year of Levy
Percentage
of
Amount
Levy
$16,890,861
99.66%
15,631,548
99.67%
15,156,690
99.53%
14,694,114
99.45%
13,991,560
99.55%
13,326,911
99.50%
12,610,243
99.35%
12,114,166
99.01%
12,104,072
98.92%
11,395,797
98.69%
182
Total Collections to Date
Collections
Percentage
in Subsequent
of
Abatements
Years
Amount
Levy
$ (40,924)
$ -
$16,890,861
99.66%
(4,318)
-
15,631,548
99.67%
988
-
15,156,690
99.53%
10,688
-
14,694,114
99.45%
(6,717)
-
13,991,560
99.55%
3,737
-
13,326,911
99.50%
11,112
75,201
12,685,444
99.94%
(21,952)
82,537
12,196,703
99.68%
(23,267)
99,615
12,203,687
99.73%
(25,901)
118,312
11,514,109
99.72%
Table 8
183
City of Cottage Grove
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
General
General Obligation
Obligation
General
Special
Fiscal
Tax Increment
Obligation
Assessments
Capital
Year
Bonds(1)
Bonds(l)
Bonds(1)
Leases
2020
$ 1,085,456
$ 15,595,093
$ 21,674,357 $
-
2019
1,363,191
16,323,536
22,941,943
-
2018
1,625,926
13,103,649
24,189,529
-
2017
1,868,660
13,736,030
19,281,013
-
2016
2,096,395
4,660,000
20,679,730
-
2015
2,309,130
-
17,964,105
4,842,432
2014
2,516,865
-
13,140,768
5,158,667
2013
2,600,000
-
14,125,979
5,463,743
2012
2,735,000
-
7,332,245
5,615,000
2011
2,790,000
-
6,763,867
5,865,000
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Presented net of original issuance discounts and premiums.
(2) See the Demographic and Economic Statistics schedule for personal income and population data.
Other
Long -Term
Debt
$ 2,686,458
2,947,657
Business -Type Activities
Revenue
Bonds(1)
609,856
717,221
824,586
1,036,584
1,456,067
Other
Total
Percentage
Capital Long -Term
Primary
of Personal
Per
Lease Debt
Government
Income (2)
Capita(2)
- $ -
$ 41,041,364
1.85%
$ 1,146
- -
43,576,327
2.07%
$ 1,223
- -
38,919,104
1.93%
$ 1,099
- -
34,885,704
1.73%
985
- -
27,436,125
1.42%
775
- -
25,725,523
1.40%
727
- -
21,533,521
1.17%
608
- -
23,014,308
1.26%
654
142,696 900,000
17,761,525
1.01%
510
- 900,000
17,774,934
1.08%
514
Table 9
185
City of Cottage Grove
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
General Obligation
General
General
Special
Fiscal
Obligation Tax
Obligation
Assessments
Year
Increment Bonds(1)
Bonds(1)
Bonds(1)
2020
$ 1,085,456
$ 15,595,093
$ 21,674,357
2019
$ 1,363,191
$ 16,323,536
$ 22,941,943
2018
1,625,926
13,103,649
24,189,529
2017
1,868,660
13,736,030
19,281,013
2016
2,096,395
4,660,000
20,679,729
2015
2,309,130
-
17,964,105
2014
2,516,865
-
13,140,768
2013
2,600,000
-
14,125,979
2012
2,735,000
-
7,332,245
2011
2,790,000
-
6,763,867
Less: Amounts
Available in Debt
Service Funds Total
$ 4,128,227
$ 3,224,138
3,370,032
3,281,981
4,098,850
3,773,605
2,833,208
3,550,891
2,377,981
1,499,819
$ 34,226,679
$ 37,404,532
35,549,072
31,603,722
23,337,274
16,499,630
12,824,425
13,175,088
7,689,264
8,054,048
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Presented net of original issuance discounts and premiums.
(2) See the Assessed and Estimated Actual Value of Taxable Property for estimated actual taxable market value.
(3) See the Demographic and Economic Statistics schedule for population data.
Percentage of
Estimated
Actual Taxable
Per
Market Value (2)
Capita (3)
0.93%
$ 888
1.10%
$ 1,002
1.14%
974
1.09%
876
0.84%
652
0.61%
463
0.54%
362
0.58%
374
0.31%
221
0.30%
233
Table 10
:,
City of Cottage Grove
Direct and Overlapping Governmental Activities Debt
As of December 31, 2020
Table 11
Percent of Debt
Net Debt Applicable
Outstanding to City
Overlapping:
City of Cottage Grove
Share of
Overlapping
Debt
Washington County $
123,045,000
12.9111% $
15,886,463
School Districts
ISD No. 200 (Hastings)
75,082,524
13.1172%
9,848,725
ISD No. 833 (South Wash. County)
310,405,000
31.2512%
97,005,287
Metro Council
187,199,958
0.9597%
1,796,558
Total Overlapping
124,537,033
City of Cottage Grove Direct Debt
41,041,364
100.00%
41,041,364
Total Direct and Overlapping Debt: $
736,773,846
$
165,578,397
Source: City of Cottage Grove Municipal Disclosure Reporting
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City.
This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt, of each overlapping government.
:a
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
City of Cottage Grove
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2011
2012
2013
2014
2015
$80,869,257
$73,931,187
$68,337,021
$71,894,811
$81,179,262
5,865,000
5,615,000
5,355,000
5,085,000
4,805,000
$ 75,004,257
$ 68,316,187
$ 62,982,021
$ 66,809,811
$76,374,262
7.25% 7.59% 7.84% 7.07% 5.92%
Im
Fiscal Year
2016
2017
2018
2019
2020
$83,725,578
$ 86,674,569
$ 93,767,628
$ 102,223,218
$ 110,756,082
4,660,000
13,240,000
12,645,000
11,690,000
11,005,000
$79,065,578
$ 73,434,569
$ 81,122,628
$ 90,533,218
$ 99,751,082
5.57% 15.28% 13.49%
Legal Debt Margin Calculation for Fiscal Year 2020
Market Value (after fiscal disparities)
Debt limit (3% of assessed value)
Debt applicable to limit
Legal debt margin
11.44% 9.94%
$4,206,029,400
126,180,882
11,005,000
$ 115,175,882
Table 12
Fiscal
Year
City of Cottage Grove
Demographic and Economic Statistics
Last Ten Fiscal Years
Table 13
Per
Capita
Personal Personal School Unemployment
Population(1) Income (2) Income (2) Enrollment (3) Rate (4)
2020
38,555
$ 2,641,981,375 $
68,525
18,753
5.4%
2019
38,175
2,500,210,040
65,493
18,554
2.7%
2018
37,341
2,329,396,164
63,035
18,519
2.5%
2017
36,492
2,213,900,353
60,669
18,165
3.3%
2016
36,062
2,105,690,772
58,392
17,794
3.4%
2015
35,814
2,012,741,903
56,200
17,893
3.9%
2014
35,619
1,926,643,820
54,090
17,685
3.9%
2013
35,403
1,843,080,180
52,060
17,671
4.8%
2012
35,187
1,823,284,779
51,817
17,639
5.5%
2011
34,828
1,764,595,448
50,666
17,389
6.0%
Sources:
(1) Metropolitan Council-2002-2009 & 2012-2013. Census-2010. Cottage Grove Planning Department-2014-2016.
(2) Washington County data from Bureau of Economic Analysis.
(3) Independent School District No. 833 including Valley Crossing School.
(4) Minnesota Department of Employment and Economic Development.
190
City of Cottage Grove
Principal Employers
Current year and nine years ago
Taxpayer Employees
School District 833
2,220
Renewal by Andersen
1,065
3M Cottage Grove
760
American Distrinution & Manufacturing Co
350
Up -North Plastics
306
Werner Electric
286
City of Cottage Grove
156
Walmart
140
Target
135
Allina Health
110
Allied Systems
-
Cub Foods
-
Menard's
-
Total
5,528
2020
2011
Table 14
Percentage
Percentage
of Total
of Total
Rank
Employment
Employees
Rank
Employment
1
27%
1,315
1
21%
2
13%
450
3
7%
3
9%
730
2
11%
4
4%
-
5
4%
300
4
5%
6
3%
170
9
3%
7
2%
175
8
-
8
2%
0%
9
2%
130
10
-
10
1%
0%
200
5
3%
0
0%
200
6
3%
0
0%
200
7
3%
67%
3,870
61%
Sources:
City of Cottage Grove Annual Municipal Disclosure Reporting and Cottage Grove Economic Development Department.
191
City of Cottage Grove
Full -Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
Budgeted Full -Time Equivalent Employees as of December 31,
2011
2012
2013
2014
2015
2016
2017
2018
General Government
Total General Government
21.76
22.06
23.38
23.40
23.25
25.70
27.60
28.20
Public Safety
Police/Cottage Grove EMS
Officers
39.00
39.00
39.00
40.00
40.00
43.56
46.84
46.84
Civilians
7.25
8.46
8.09
8.26
7.56
7.56
7.56
7.56
Fire/Emergency Management
4.00
4.00
5.00
7.00
9.00
11.75
15.10
15.10
Total Public Safety
50.25
51.46
52.09
55.26
56.56
62.87
69.50
69.50
Public Works
21.56
20.83
21.68
23.68
24.08
22.12
23.73
23.49
Recreation
2.50
2.50
2.55
2.55
2.55
2.55
2.70
2.70
Ice Arena
2.60
3.20
3.65
3.65
3.65
3.55
2.60
2.60
Water/Sewer
8.36
8.23
8.18
8.18
8.28
9.28
10.08
10.08
Storm Sewer
3.40
3.54
3.54
3.54
3.54
3.54
3.50
3.50
Golf Course Fund
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
Street Light Fund
1.04
1.06
1.06
1.06
1.06
1.06
1.23
1.23
Fleet Maintenance
3.84
4.04
4.04
4.04
4.04
4.04
4.00
4.00
Total
120.31
121.92
125.17
130.36
132.01
139.71
149.94
150.30
Source: City of Cottage Grove Finance Office
192
Budgeted Full -Time
Equivalent
Employees as of
2019 2020
29.00 26.00
46.84 46.64
7.56 7.56
15.10 18.00
69.50 72.20
24.09 29.70
2.70 1.95
2.60 2.85
10.08 10.00
3.50 3.50
5.00 5.00
1.23 1.50
4.00 4.00
151.70 156.70
Table 15
193
City of Cottage Grove
Operating Indicators by Function/Program
Last Ten Years
Function/Program
2011
2012
2013
2014
2015
2016
General Government
Elections
2
2
2
Registered voters as of lam election day
21,119
20,780
21,594
Number of votes cast
19,727
11,166
19,799
Voter participation (registered)
93.41%
53.73%
84.50%
(elections are held every other year)
Community Development
Inspections
Building Permits (New Dwelling Units)
49
53
56
77
65
99
Code Enforcement Inspections
1,276
2,407
2,826
1,482
1,013
841
Public Safety
Police
Crimes - Part I
694
756
783
774
719
673
Crimes - Part 11
2,117
1,614
1,473
1,434
1,419
1,424
Total Calls for Service
20,707
17,348
18,151
18,448
20,576
21,331
Fire
Medical
2,000
2,347
2,437
2,562
2,464
2,681
Fire
456
295
280
301
290
279
Avg Response Time (minutes) Medical*
8:38
6:51
6:15
6:19
6:13
6:21
Avg Response Time (minutes) Fire*
8:24
8:04
7:25
7:34
7:06
6:54
Avg Response Time (minutes) Both*
8:36
6:59
6:22
6:27
6:16
6:24
*Entire service area
Public Works
Sq. Yards of Streets Sealcoated
382,374
488,210
457,275
199,725
118,159
193,249
Miles of Streets New Construction
1.12
0.30
1.23
1.99
0.56
1.11
Miles of watermain added
0.63
0.79
2.42
1.84
1.06
1.20
Source: Various City of Cottage Grove Departments
Notes:
(1) Information not available is labeled n/a.
194
2017 2018 2019 2020
4 1 3
22,076 22,689 24,444
17,369 2,559 22,932
75.00% 11.28% 93.81%
255 185 284 382
1,018 1,119 803 666
767
619
619
616
1,471
1,358
948
961
20,879
22,647
20,375
32,288
2,790
2,914
2,950
2,995
280
307
256
331
6:25
6:25
7:17
6:18
7:05
7:13
6:08
9:38
6:28
6:54
7:03
8:18
71,152 0 0 250,766
1.02 4.82 2.80 2.87
3.64 4.30 4.52 9.16
Table 16
195
City of Cottage Grove
Capital Asset Statistics by Function/Program
Last Ten Years
Fiscal Year
Function/Program 2011 2012 2013 2014 2015 2016
Public Safety
Police
Stations
1
1
1
1
1
1
Patrol Units
12
12
13
13
13
13
Fire
Stations
4
4
4
4
4
4
Fire Trucks
6
6
6
6
6
6
Public Works
City -owned Lights
2,320
2,345
2,416
2,481
2,495
2,592
Xcel owned Lights
301
301
301
301
301
301
Streets (miles)
156.83
157.13
158.36
160.35
160.91
162.02
Sidewalks/trails (miles)
48.25
48.61
53.82
57.83
59.56
61.98
Parks (acreage)
Community Parks
377
377
377
377
400
400
Neighborhood Parks
201
244
275
303
275
275
Recreation facilities
21
21
21
21
15
15
County Parks
571
571
571
571
569
569
State Scientific and Nature Area
238
238
238
238
238
238
Golf Course
219
219
219
219
219
219
Other Open Space
453
453
581
581
961
961
Water
Number of Connections
10,474
10,538
10,573
10,640
10,706
10,789
Miles of Water Mains and Laterals
143.87
144.66
147.08
148.92
149.98
151.18
Sanitary Sewer
Number of Connections
10,433
10,486
10,532
10,604
10,670
10,667
Miles of Sanitary Sewer Mains and Laterals
127.58
127.99
129.32
131.11
131.45
132.81
Storm Sewer
Miles of storm sewers
79.50
80.39
85.41
87.81
89.52
93.94
Source: Various City Departments
196
Fiscal Year
2017 2018 2019 2020
1
1
1
1
13
16
17
17
4
3
3
3
6
6
5
5
2,682
2,797
2,898
2,968
301
301
301
301
163.04
167.87
170.67
173.53
64.87
70.06
75.55
81.28
400
400
400
400
275
275
275
275
15
15
15
15
569
569
569
569
238
238
238
238
219
219
219
219
961
961
969.8
969.8
10,891 11,160 11,212 11,513
154.82 159.12 164.24 175.40
10,983 11,256 11,521 11,714
135.42 139.51 142.42 146.87
98.75 106.39 111.18 116.96
Table 17
197