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Annual
Comprehensive Financial Report
of the
CITY OF COTTAGE GROVE,
MINNESOTA
For the Year Ended
December 31, 2021
Prepared by
City's Finance Department
City of Cottage Grove
12800 Ravine Parkway South
Cottage Grove, MN 55016
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City of Cottage Grove
Table of Contents
Introductory Section Page
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 7
Elected Officials and Administration 8
Organization Chart 9
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 Basic Financial Statements
45
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances
— Budget and Actual — General Fund
88
Schedule of Changes in Total OPEB Liability and Related Ratios
90
Schedule of City's Proportionate Share of Net Pension Liability
— General Employees Retirement Fund
91
Schedule of City's Proportionate Share of Net Pension Liability
— Police and Fire Retirement Fund
91
Schedule of City Contributions — General Employees Retirement Fund
93
Schedule of City Contributions — Police and Fire Retirement Fund
93
Schedule of Changes in Net Pension Liability and Related Ratios
— Fire Relief Association
94
Schedule of City and Non -Employer Contributing — Fire Relief Association
96
Notes to Required Supplementary Information
98
Combining and Individual Fund Statements and Schedules
Nonmaj or Governmental Funds 109
City of Cottage Grove
Table of Contents
Financial Section (Continued)
Combining and Individual Fund Statements and Schedules (Continued)
Page
Combining Balance Sheet — Nonmajor Governmental Funds
111
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds
112
Nonmajor Special Revenue Funds
113
Subcombining Balance Sheet — Nonmajor Special Revenue Funds
114
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Special Revenue Funds
116
Nonmajor Debt Service Funds
119
Subcombining Balance Sheet — Nonmajor Debt Service Funds
120
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Debt Service Funds
122
Nonmajor Capital Projects Funds
125
Subcombining Balance Sheet — Nonmajor Capital Projects Funds
126
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
134
Schedule of Revenues, Expenditures, and Changes in Fund Balances
— Budget and Actual — Storm Water Maintenance Special Revenue Fund
135
Schedule of Revenues, Expenditures, and Changes in Fund Balances
— Budget and Actual — Forfeiture/Seizure Special Revenue Fund
136
Schedule of Revenues, Expenditures, and Changes in Fund Balances
— Budget and Actual — Ice Arena Special Revenue Fund
137
Schedule of Revenues, Expenditures, and Changes in Fund Balances
— Budget and Actual — Golf Course Special Revenue Fund
138
Schedule of Revenues, Expenditures, and Changes in Fund Balances
— Budget and Actual — HERO Center Operations Special Revenue Fund
139
Schedules of Revenues, Expenditures, and Changes in Fund Balances
COVID-19 Pandemic Relief Special Revenue Fund
140
Internal Service Funds
141
Combining Statement of Net Position — Internal Service Funds
142
Combining Statement of Revenues, Expenses, and Changes in Net
Position — Internal Service Funds
143
Combining Statement of Cash Flows — Internal Service Funds
144
Economic Development Authority Component Unit
145
Combining Balance Sheet — All Governmental Fund Types
— Economic Development Authority Component Unit
146
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances — All Governmental Fund Types
— Economic Development Authority Component Unit
147
City of Cottage Grove
Table of Contents
Financial Section (Continued)
Supplementary Financial Information
Page
Combined Schedule of Bonded Indebtedness
150
Debt Service payments to Maturity
152
Deferred Tax Levies
155
Subcombining Balance Sheet — Pavement Management Debt Service Schedule
156
Subcombining Statement of Revenues, Expenditures, and Changes in Fund
Balance — Pavement Management Debt Service Schedule
158
Subcombining Balance Sheet — Tax Increment Construction Revolving Schedule
160
Subcombining Statement of Revenues, Expenditures, and Changes in Fund
Balance —Tax Increment Construction Revolving Schedule
162
Subcombining Balance Sheet — TIF Debt Service Revolving Schedule
164
Subcombining Statement of Revenues, Expenditures, and Changes in Fund
Balances — TIF Debt Service Revolving Schedule
165
Statistical Section Section
Page
Net Position by Component
1
170
Changes in Net Position
2
172
Fund Balances of Governmental Funds
3
176
Changes in Fund Balances of Governmental Funds
4
178
Assessed and Estimated Actual Value of Taxable Property
5
180
Property Tax Rates Direct and Overlapping Governments
6
182
Principal Property Taxpayers
7
183
Property Tax Levies and Collections
8
184
Ratios of Outstanding Debt by Type
9
186
Ratios of General Bonded Debt Outstanding
10
188
Direct and Overlapping Governmental Activities Debt
11
189
Legal Debt Margin Information
12
190
Demographic and Economic Statistics
13
192
Principal Employers
14
193
Full -Time Equivalent City Government Employees by Function
15
194
Operating Indicators by Function/Program
16
196
Capital Asset Statistics by Function/Program
17
198
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INTRODUCTORY SECTION
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MMCottage
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June 7, 2022
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 Annual Comprehensive
Financial Report of the City of Cottage Grove for the year ended December 31, 2021.
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, 2021.
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 2020 Census established the City population at 38,839: recent data estimates
2021 population at 39,605.
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.
CITY OF COTTAGE GROVE ■ 12800 Ravine Parkway ■ Cottage Grove, Minnesota 55016 3
�vwwxottage-grove.org • 651-458-2800 • Fax 651-458-2897 • Equal Opportunity Ern ployer
Letter of Transmittal
June 7, 2022
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.
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 28th of each year. The legal level of
budgetary control is at the department level.
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 2021
was $4 billion. This was an increase of 8% over 2020, due to new construction and increases in
property values of existing building stock.
The business park is home to Up North Plastics, Green Thumb, American Logistics, Modern
Automotive Performance, Renewal by Andersen, North Star Sheets, and Van Meter. Other major
employers in the City include 3M Company, Target, Menard's, Walmart, and Aggregate
Industries. In 2021 the companies were doing so well that many began actively expanding their
operations including North Star Sheets, Renewal by Andersen, and Leafline Labs. NorthPoint also
updated their initial plans for building 2AM square feet of logistics and warehousing space to over
3 AM square feet.
The City's commercial areas include four community shopping centers which are home to many
prominent retailers including Hy-Vee, PetSmart, Target, TJ-Maxx, Walgreens, Kohl's, Chipotle,
Aldi, Cub Foods, and Walmart.
In 2021, the city was actively purchasing and selling land in the City's business park. Numerous
deals were struck with companies eager to locate in the city's business park including Ryan
Companies, Enclave, Endeavor and NorthPoint. These developments, along with others, will add
more than 4M square feet of warehousing, logistics and manufacturing in the next several years
and grow our workforce by more than 2,000 jobs.
Airgas who began construction of a $54 million air -separation plant on 8.5 acres in the business
park completed their plans in mid-2021 and are now actively working on an expansion in 2022.
F1
Letter of Transmittal
June 7, 2022
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 full road reconstruction projects or a reclamation 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.
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 38,839 per the 2020 census.
Most of the population of the City concentrates in two age groups: 0 - 14 years (22.8%) and 25 -
54 years (41.8%). According to the 2020 census, the average age is 38.1 years, and the median
family income is $102,600. This median family income is 39.8% higher than Minnesota's median
family income.
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, Cottage Grove saw a
residential development boom, with several years of building permits for single family homes
exceeding 300 per year.
Letter of Transmittal
June 7, 2022
Major Initiatives (Continued)
During the Great Recession of 2007, residential development slowed significantly for the Cottage
Grove community. 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 2021, 574 permits were issued
for new construction of residential housing (detached and attached) units. Over 1,094 platted lots
with completed infrastructure awaited construction at the end of 2021.
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 eight 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 positioning for growth can be seen in the residential and industrial growth.
The growth has provided Cottage Grove more homes and jobs opportunities, which in return has
led to additional interest in commercial/retail users and demands for community services.
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 Annual Comprehensive Financial Report for the year ended December 31, 2020. This was
the thirty-first consecutive year the City has achieved this prestigious award. To receive a
Certificate of Achievement, a government must publish an easily readable and efficiently
organized Annual Comprehensive Financial Report. This report must satisfy both accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Annual Comprehensive Financial Report 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 to whom
I give my heartiest thanks. 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
s
Jennifer Levitt
City Administrator
0
City of Cottage Grove
Certificate of Achievement for Excellence in Financial Reporting
Govcrwntnt Finance Officers Association
Certificate at'
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Cottage Grove
Minnesota
For its A numl Comprehensive
Financial Report
For the Fiscal Year Ended
Deceiiiber 31. 020
Execntive Diiectoir/CEO
7
City of Cottage Grove
Elected Officials and Administration
December 31, 2021
Elected Officials Position Term Expires
Myron Bailey Mayor December 31, 2024
Steve Dennis Council Member December 31, 2022
Justin Olsen Council Member December 31, 2024
Tony Khambata Council Member December 31, 2022
Dave Thiede Council Member December 31, 2022
Appointed Personnel
Jennifer Levitt City Administrator
Robin Roland Finance Director
Tammy Anderson City Clerk
Christine Costello Community and Economic Development Director
Ryan Burfeind Public Works Director and City Engineer
Peter Koerner Director of Public Safety
Zac Dockter Parks and Recreation Director
Cottage Grove
Citizens
City Council
Advisory
Commissions
City City
Administrator Attorney
Adrninistrat' on I Community Finance Parks and public Safety Public Works
Development Recreation
Human
Planning IT Parks Investigations Engineering
Resources
City Clerk/ I Building/Code
Elections Enforcement
Economic
Development
Communications
Recreation Patrol Fleet and
Facilities
■
Emergency
River Oaks Management Streets
Ice Arena I Fire
Emergency
Medical
Services
HERO Center
Utilties
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FINANCIAL SECTION
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berganKov
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Cottage Grove
Cottage Grove, Minnesota
Report on the Audit of the Financial Statements
Opinions
We have audited the 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, as of and for the year ended December 31, 2021, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the
Table of Contents.
In our opinion, the accompanying financial statements 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, as of December 31, 2021, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of the City of Cottage Grove and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Responsibilities of Management for the Financial Statements
The City of Cottage Grove's management is responsible for the preparation and fair presentation of the
financial statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City of Cottage Grove's
ability to continue as a going concern for one year beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
BERGANKDV, LTD. ! BERGANKDV.COM I DO MORE.
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City of Cottage Grove's internal control. Accordingly, no
such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City of Cottage Grove's ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control —related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, which follows this report letter, and Required Supplementary information as
listed in the Table of Contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not a part of the basic financial
statements, is required by 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.
BERGANKDV, LTD. I BERGANKDV.COM I D❑ MORE. 14
Supplementary 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 combining and
individual nonmajor fund financial statements are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial
Report. The other information comprises the introductory and statistical sections but does not include
the basic financial statements and our auditor's report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of
assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 25, 2022,
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 25, 2022
BERGANKDV, LTD. I BFRGANKDV.C❑M j DO MORE. 15
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City of Cottage Grove
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, 2021. 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 6 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 $345,747,083 (net position). Of this amount, $45,457,006 (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 $25,639,366 as a result of current year operations.
• As of the close of the current fiscal year, the City of Cottage Grove's governmental funds
reported combined ending fund balances of $46,425,125 an increase of $15,168,475 compared to
the previous year. Approximately 79% or $36,640,225 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
$11,384,256 (55%) 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 $46,484,011, an increase of $4,222,290 compared to the previous year due to the issuance of
new debt during the current fiscal year.
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
City of Cottage Grove
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.
City of Cottage Grove
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
• Closed Debt Fund —Debt service fund
• Municipal Building Capital Project Fund — Capital project fund
• MSA Construction Capital Project Fund —Capital project fund
• Future Projects Fund - Capital project fund
• Water Connection and Area Fund — Capital project fund
• Developer Petitioned Projects 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
City of Cottage Grove
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 107
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 $346,215,575 at the
close of the most recent fiscal year.
The largest portion of the City of Cottage Grove's net position ($291,598,794 or 84%) 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.
Governmental Activities
2021
2020
City of Cottage Grove Net Position
Business -Type Activities Total Primary Government
2021 2020 2021 2020
Current and other assets
$ 90,098,292
$ 45,740,424
$ 20,647,393
$ 15,961,687
$ 110,745,685
$ 61,702,111
Capital assets
219,903,206
239,424,423
84,328,385
75,408,885
304,231,591
314,833,308
Total assets
310,001,498
285,164,847
104,975,778
91,370,572
414,977,276
376,535,419
Deferred outflows of resources
9,759,024
3,433,239
1,517,475
508,175
11,276,499
3,941,414
Long-trem liabilities outstanding
39,126,686
38,590,666
102,827
76,209
39,229,513
38,666,875
Pension liability
7,198,406
10,396,962
1,083,940
1,514,935
8,282,346
11,911,897
Other liabilities
17,836,151
10,086,785
748,662
628,680
18,584,813
10,715,465
Total liabilities
64,161,243
59,074,413
1,935,429
2,219,824
66,096,672
61,294,237
Deferred inflows of resources
12,118,020
4,052,946
1,823,508
553,441
13,941,528
4,606,387
Net Position
Net investment in capital asset
204,395,412
198,383,059
87,203,382
75,408,885
291,598,794
273,791,944
Restricted
8,691,283
7,959,917
-
-
8,691,283
7,959,917
Unrestricted
30,394,564
25,127,751
15,530,934
13,696,597
45,925,498
38,824,348
Total net position
$ 243,481,259
$ 231,470,727
$ 102,734,316
$ 89,105,482
$ 346,215,575
$ 320,576,209
An additional portion of the City's net position ($8,691,283 or 2.5%) represents resources that are subject
to external restrictions on how they may be used. The remaining portion of net position, $45,925,498,
may be used to meet the City's ongoing obligations to citizens and creditors.
20
City of Cottage Grove
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.
The following is a summary of the City's change in net position:
Revenues
Program Revenues
Charges for services
Operating Grants and Contributions
Capital grants and contributions
General revenues
Property taxes
Other taxes
Grants and contributions not
Unrestricted investment earnings
Gain on sale of assets
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
Increase (decrease) in net position
Net position - beginning
Net Position - Ending
City of Cottage Grove's Changes in Net Position
Governmental Activities
Business -Type Activities
Total Primary Government
2021
2020
2021
2020
2021
2020
$ 11,286,119
$ 7,681,171
$ 10,641,942
$ 8,928,778 $
21,928,061
$ 16,609,949
4,648,424
17,726,027
147,694
101,196
4,796,118
17,827,223
23,828,108
20,144,097
6,359,047
3,842,839
30,187,155
23,986,936
17,494,963
16,881,359
-
-
17,494,963
16,881,359
2,066,026
1,940,895
2,066,026
1,940,895
83,568
181,316
83,568
181,316
(258,924)
582,781
(40,919)
179,837
(299,843)
762,618
31,111
34,579
-
31,111
34,579
59,179,395
65,172,225
17,107,764
13,052,650
76,287,159
78,224,875
2,936,133
5,621,197
-
2,936,133
5,621,197
2,305,822
1,750,768
2,305,822
1,750,768
823,036
583,767
823,036
583,767
11,098,534
6,947,733
11,098,534
6,947,733
15,567,240
13,650,476
15,567,240
13,650,476
6,365,540
5,638,642
6,365,540
5,638,642
1,236,037
1,141,147
1,236,037
1,141,147
-
1,262,557
1,152,326
1,262,557
1,152,326
2,091,317
1,843,840
2,091,317
1,843,840
3,428,669
3,039,639
3,428,669
3,039,639
3,532,908
3,463,493
3,532,908
3,463,493
40,332,342
35,333,730
10,315,451
9,499,298
50,647,793
44,833,028
18,847,053
29,838,495
6,792,313
3,553,352
25,639,366
33,391,847
(6,836,521) (2,435,861)
6,836,521 2,435,861
12,010,532 27,402,634 13,628,834 5,989,213 25,639,366 33,391,847
231,470,727 204,068,093 89,105,482 83,116,269 320,576,209 287,184,362
$ 243,481,259 $ 231,470,727 $ 102,734,316 $ 89,105,482 $ 346,215,575 $ 320,576,209
Net position increased by $12,010,532 or 5.2% in governmental activities as a result of current year
operations.
Overall, revenues from governmental activities decreased by $5,992,830 or 9.2%. Charges for services
increased due to increased building and development activity in the current year. Operating grants and
contributions decreased due to one-time revenues received in the prior year for CARES Act revenue
21
City of Cottage Grove
Management's Discussion and Analysis
Government -wide Financial Analysis (Continued)
received in order to respond to the COVID-19 pandemic. Capital grants and contributions increased
during the current year, due to the receipt of Municipal State Aid for construction and settlement funding
received from the PCA/3M settlement. Infrastructure related to water treatment were constructed with the
use of these settlement funds.
Governmental activities expenses increased overall by 14.15% as all governmental activities returned to
near normal operations after the initial response to COVID-19 pandemic in the prior year. Transfers out
from the governmental activities to the business -type activities increased due to capital contributions
related to new development activity and infrastructure construction related to water treatment activities.
Net position in business -type activities increased $13,628,834 primarily due to the transfers from the
governmental activities. In addition, charges for services increased in the business -type activates due to
increased water demand due to dry summer conditions, increased calls for service in the EMS fund, and
rate increases in the business -type activities as identified in various utility rates studies.
Governmental Activities
The following chart illustrates the City's expenses and corresponding program revenues for its
governmental activities.
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
General Community Economic Public Safety Public Works Culture and Interest on
Government Development Development Recreation Debt
■ Revenue ■ Expense
22
City of Cottage Grove
Management's Discussion and Analysis
Business -Type Activities
Net position in business -type activities by $13,628,834. Below are graphs showing the business -type
activities revenue and expense comparisons.
Charges for
62%
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Revenues - Business -Type Activities
Operating Grants
and Contrihntinmc
Street Lights Cottage Grove EMS Water Operating
■ Revenues ■ Expenses
Capital Grants and
Contnbutions
37%
Sewer Operating
In business type activities, changes in net position were positive for all four business -type activity funds.
23
City of Cottage Grove
Management's Discussion and Analysis
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 $46,425,125, an increase of $15,168,475. Committed, assigned and unassigned
fund balance which is available for spending at the government's discretion has a balance of
$36,640,225 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.
General Fund
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 $11,384,256 while total fund balance was
$13,104,379. 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% of the same
amount.
The General fund balance increased by $829,003. The increase primarily occurred in permit revenue
and charges for services due to increased construction and development activity that occurred during the
current year.
Other Major Governmental Funds
The Closed Debt Fund decreased by $462,089 due to a transfer out to the non -major fund, Pavement
Management Debt Service. This transfer was used to call one of the pavement management bonds, in
order to realize interest debt service savings in the future.
The Municipal Building Fund increased by $327,220 due to property tax revenues collected for the
repayment of the interfund loan which funded the Public Safety/City Hall building that was constructed
in 2012 and funded with an interfund loan. The loan is anticipated to be paid in full in 2032.
The MSA Construction Fund increased by $1,922,949. Current year receipts of Municipal State Aid for
the 80th street construction project that was constructed in prior years resulted in the increase in the fund.
The Future Projects Fund increased by $702,965 due to funds received from developers that will be used
to fund future improvements in their respective developments.
The Water Connection and Area Fund increased by $2,194,550 due to area charges collected from the
development of sixteen new residential plats in 2021. This fund also saw significant activity from the
PCA/3M settlement funding of interim water treatment facilities in the City, including the purchase of
land for one of the future water treatment facilities.
24
City of Cottage Grove
Management's Discussion and Analysis
Other Major Governmental Funds (Continued)
The Developer Petitioned Projects Fund increased by $3,681,022 due to the collection of levied special
assessments for the Summers Landing development. This development was constructed by the City, and
the special assessments are for payment of the City incurred costs.
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 $13,724,860 in 2021 due to increased utility
rates, capital contributions from completed infrastructure projects in new developments, and a capital
contribution from the State of MN for land that will be used for a future water treatment facility.
Budgetary Highlights
General Fund.
The General Fund actual results were different than the final budget amounts due to the following:
• Licenses and Permits categories were $360,115 more than the final budget due to more building
permit activity that occurred than anticipated in the current year.
• Charges for services were $110,990 more than budgeted due to engineering fees resulting from
increased construction and development activity.
• Community development expenditures were $156,224 more than budgeted amounts due to a
staffing and consultants costs related to the increase in development projects.
• Culture and recreation expenditures were $125,269 more than budgeted due to expenses incurred
relating a storm cleanup during the current year.
25
City of Cottage Grove
Management's Discussion and Analysis
Capital Assets
The City of Cottage Grove's investment in capital assets for its governmental and business -type
activities as of December 31, 2021, amounts to $332,829,181 (net of accumulated depreciation). This
investment in capital assets includes land, buildings, infrastructure, machinery and equipment.
City of Cottage Grove's Capital Assets
(Net of Depreciation)
Governmental Activities
Business -Type Activities
Total Primary Government
2021
2020
2021 2020
2021
2020
Land and land improvements
$ 18,060,944
$ 18,105,944
$ 2,900,083 $ 505,665
$ 20,961,027
$ 18,611,609
Easements
1,157,202
1,157,202
-
1,157,202
1,157,202
Construction in progress
6,504,447
12,756,257
-
6,504,447
12,756,257
Buildings and improvements
46,305,075
47,890,594
4,176,157 4,467,002
50,481,232
52,357,596
Equipment and furniture
344,774
265,411
-
344,774
265,411
Machinery and equipment
6,522,016
6,653,274
963,214 830,901
7,485,230
7,484,175
Other improvements
7,258,914
4,646,135
6,772,193 6,487,714
14,031,107
11,133,849
Infrastructure
-
Streets
119,389,415
110,044,332
-
119,389,415
110,044,332
Storm sewers
34,001,465
32,360,290
34,001,465
32,360,290
Sidewalks/trails
6,081,547
5,544,984
-
6,081,547
5,544,984
Water and sewer lines
-
72,391,735 63,117,603
72,391,735
63,117,603
Ending balance
$ 245,625,799
$ 239,424,423
$ 87,203,382 $ 75,408,885
$ 332,829,181
$ 314,833,308
Infrastructure capital assets in new developments were the largest additions to capital assets during the
current year.
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
$46,484,011 an increase of $4,222,290. $7,871,832 of the debt outstanding is due within one year.
Bonds issued during the current year totaled $7,795,000.
$26,610,000 of the outstanding bonds payable is for pavement management debt being repaid by a
combination of special assessments and property tax levies.
Governmental activities
Bonds payable, net
Compensated absences
Total governmental activities
Business -Type activities
Compensated absences
Total business -type activities
Total primary government
City of Cottage Grove's Outstanding Debt
2021 2020
$ 45,184,230 $ 41,041,364
1,134,893 1,073,065
46,319,123 42,114,429
164,888 147,292
164,888 147,292
$ 46,484,011 $ 42,261,721
26
City of Cottage Grove
Management's Discussion and Analysis
Long-term debt
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 $133,187,259.
Of that limit, $10,300,000 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
%re Pride 006
Cottage
Grove
yl,05PCritY Mott
BASIC FINANCIAL STATEMENTS
29
%re Pride 006
Cottage
Grove
yl,05PCritY Mott
30
City of Cottage Grove
Statement of Net Position
December 31, 2021
With Comparative Totals for December 31, 2020
Component
Unit
Primary Government
Economic
Totals
Governmental
Business -Type
Total Primary
Development
Reporting Entitiy
Activities
Activities
Government
Authority
2021
2020
Assets
Cash and investments (including
cash equivalents)
$ 55,799,854
$ 11,795,971
$ 67,595,825
$
$ 67,595,825
$ 50,600,813
Interest receivable
215,933
-
215,933
215,933
201,147
Due from other governments
1,469,880
70,820
1,540,700
1,540,700
2,191,538
Accounts receivable
1,831,401
3,453,080
5,284,481
8,282
5,292,763
2,911,499
Prepaid items
324,074
4,817
328,891
480
329,371
655,020
Property tax receivable
103,637
-
103,637
832
104,469
124,585
Loan receivable
-
-
44,175
44,175
73,299
Special assessments receivable
4,390,225
4,390,225
-
4,390,225
8,300,947
Inventories
230,734
230,734
230,734
149,408
Internal balances
(2,447,708)
2,447,708
-
-
-
-
Property held for resale
716,398
-
716,398
129,300
845,698
903,949
Fire relief pension asset
1,741,271
-
1,741,271
-
1,741,271
1,989,839
Capital assets not being depreciated
Land
18,060,944
2,874,997
20,935,941
20,935,941
18,585,729
Easements
1,157,202
-
1,157,202
1,157,202
1,157,202
Construction in progress
6,504,447
-
6,504,447
6,504,447
12,756,257
Capital assets net of accumulated depreciation
Land improvements
-
25,086
25,086
25,086
25,880
Buildings and improvements
46,305,075
4,176,157
50,481,232
50,481,232
52,357,596
Equipment and furniture
344,774
-
344,774
344,774
265,411
Machinery and equipment
6,522,016
963,214
7,485,230
7,485,230
7,484,175
Other improvements
7,258,914
6,772,193
14,031,107
14,031,107
11,133,849
Infrastructure
159,472,427
72,391,735
231,864,162
-
231,864,162
211,067,209
Total assets
310,001,498
104,975,778
414,977,276
183,069
415,160,345
382,935,352
Deferred Outflows of Resources
Deferred outflows of resources related to OPEB
233,213
35,432
268,645
186
268,831
47,082
Deferred outflows of resources related to pensions
9,525,811
1,482,043
11,007,854
61,436
11,069,290
3,910,802
Total deferred outflows of resources
9,759,024
1,517,475
11,276,499
61,622
11,338,121
3,957,884
Total assets and deferred outflows of resources
$ 319,760,522
$ 106,493,253
$ 426,253,775
$ 244,691
$ 426,498,466
$ 386,893,236
Liabilities
Accounts payable
$ 3,458,035
$ 209,226
$ 3,667,261
$ 31,354
$ 3,698,615
$ 2,035,351
Salaries and benefits payable
769,399
133,593
902,992
3,991
906,983
674,242
Contracts payable
528,799
-
528,799
-
528,799
544,078
Due to other governments
114,197
157,281
271,478
435,978
707,456
616,562
Deposits payable
4,702,746
106,400
4,809,146
74,625
4,883,771
2,749,413
Unearned revenue
61,241
-
61,241
-
61,241
30,305
Interest payable
482,064
482,064
482,064
487,378
Bonds payable, net of unamortized premium
Due within one year
6,825,000
6,825,000
6,825,000
3,025,000
Due in more than one year
38,359,230
38,359,230
38,359,230
38,016,364
Compensated absences payable
Due within one year
894,670
142,162
1,036,832
10,219
1,047,051
949,592
Due in more than one year
240,223
22,726
262,949
-
262,949
280,910
Net pension liability
Due in more than one year
7,198,406
1,083,940
8,282,346
76,802
8,359,148
12,044,666
Total OPEB liability
Due in more than one year
527,233
80,101
607,334
6,308
613,642
374,505
Total liabilities
64,161,243
1,935,429
66,096,672
639,277
66,735,949
61,828,366
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
12,102,499
1,821,149
13,923,648
71,116
13,994,764
4,589,288
Deferred inflows of resources related to OPEB
15,521
2,359
17,880
2,790
20,670
23,428
Total deferred inflows of resources
12,118,020
1,823,508
13,941,528
73,906
14,015,434
4,612,716
Net Position
Net Investment in capital assets
204,395,412
87,203,382
291,598,794
-
291,598,794
273,791,944
Restricted for
Forfeiture and seizure
72,712
-
72,712
72,712
89,411
Pandemic relief
-
-
-
1,500
Debt retirement
6,956,447
6,956,447
6,956,447
6,786,378
Tax increment purposes
1,662,124
1,662,124
1,662,124
1,082,628
Unrestricted
30,394,564
15,530,934
45,925,498
(468,492)
45,457,006
38,700,293
Total net position
243,481,259
102,734,316
346,215,575
(468,492)
345,747,083
320,452,154
Total liabilities, deferred inflows of resources,
and net position
$ 319,760,522
$ 106,493,253
$ 426,253,775
$ 244,691
$ 426,498,466
$ 386,893,236
See notes to basic financial statements. 31
City of Cottage Grove
Statement of Activities
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
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
$ 2,936,133
$ 54,220
$ 71,959
$ -
2,305,822
3,439,162
-
-
11,098,534
1,689,365
616,291
-
823,036
210
150,000
-
15,567,240
2,304,418
3,274,099
21,548,822
6,365,540
3,798,744
536,075
2,279,286
1,236,037
-
-
-
40,332,342
11,286,119
4,648,424
23,828,108
1,262,557
1,115,511
-
347,268
2,091,317
2,524,990
112,983
-
3,428,669
3,648,447
34,711
3,971,646
3,532,908
3,352,994
-
2,040,133
10,315,451
10,641,942
147,694
6,359,047
$ 50,647,793 $ 21,928,061 $ 4,796,118 $ 30,187,155
$ 635,299 $ 168,527 $ - $ -
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
See notes to basic financial statements. 32
Net (Expense) Revenues and Changes in Net Position
Primary Government
Governmental Business -Type
A
$ (2,809,954) $
1,133,340
(8,792,878)
(672,826)
11,560,099
248,565
(1,236,037) _
(569,691)
(569,691)
$ (2,809,954) $ (2,534,534)
- 1,133,340
913,947
- (8,792,878)
(4,033,621)
- (672,826)
178,261
- 11,560,099
18,059,300
- 248,565
(1,224,641)
- (1,236,037)
(1,141,147)
(569,691)
10,217,565
200,222
200,222
235,869
546,656
546,656
(31,789)
4,226,135
4,226,135
2,686,556
1,860,219
1,860,219
482,879
6,833,232
6,833,232
3,373,515
6,833,232
6,263,541
13,591,080
Component
Development
Authority
(466,772)
17,494,963
-
17,494,963
16,881,359
124,806
615,326
-
615,326
596,537
-
23,467
-
23,467
22,699
-
1,427,233
-
1,427,233
1,321,659
-
83,568
-
83,568
181,316
-
(258,924)
(40,919)
(299,843)
762,618
(2,471)
31,111
-
31,111
34,579
-
(6,836,521)
6,836,521
-
-
-
12,580,223
6,795,602
19,375,825
19,800,767
122,335
12,010,532
13,628,834
25,639,366
33,391,847
(344,437)
231,470,727
89,105,482
320,576,209
287,184,362
(124,055)
$ 243,481,259
$ 102,734,316
$ 346,215,575
$ 320,576,209
$ (468,492)
33
City of Cottage Grove
Balance Sheet - Governmental Funds
December 31, 2021
With Comparative Totals for December 31, 2020
Assets
Cash and investments
Interest receivable
Interfund receivable
Interfund loan receivable
Due from other governments
Accounts receivable
Prepaid items
Inventories
Taxes receivable - delinquent
Special assessments receivable
Deferred
Delinquent
Special deferred
Property held for resale
Total assets
Liabilities
Accounts payable
Salaries and benefits payable
Interfund payable
Contracts payable
Due to other governments
Deposits payable
Unearned revenue
Interfund loan payable
Total liabilities
Deferred Inflows of Resources
Unavailable revenue - tax increment
Unavailable revenue - property taxes
Unavailable revenue - special assessments
Unavailable revenue - intergovernmental
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources, and fund balances
Debt Service Capital Projects
Municipal
MSA
General Fund
Closed Debt
Building Fund
Construction
(100)
Fund (300)
(525)
(520)
$ 12,792,496
$ 982,003
$ 68,281
$ -
215,933
-
-
-
-
1,234,530
-
-
494,890
-
-
320,909
160,116
-
-
-
43,228
-
-
-
90,602
941
2,096
-
3,733 212,413 - 92,098
1,510 3,497 - 680
- 5,782 - -
- - 267,498
$ 13,802,508 $ 2,439,166 $ 70,377 $ 681,185
$ 67,216 $ - $ - $ 30,382
432,361 - - -
- - - 1,082,326
- - - 35,156
42,619 - - -
500 - - -
59,588 - 1,652 -
- - 2,650,000 -
602,284 - 2,651,652 1,147,864
90,602 941 2,096 -
5,243 221,692 - 92,778
- - - 1,056,418
95,845 222,633 2,096 1,149,196
43,228 - - -
1,676,895 2,216,533 - -
11,384,256 - (2,583,371) (1,615,875)
13,104,379 2,216,533 (2,583,371) (1,615,875)
$ 13,802,508 $ 2,439,166 $ 70,377 $ 681,185
See notes to basic financial statements. 34
Capital Projects
Totals
Water
Connection
Developer
Nonmajor
Future Projects
and Area
Petitioned
Governmental
(510, 810)
(575)
Projects (568)
Funds
2021
2020
$
5,485,469
$ 3,762,083
$
1,569,565
$
30,420,033
$
55,079,930
$
38,738,599
-
-
-
-
215,933
201,147
-
-
-
698,524
1,933,054
4,345,114
-
-
-
601,063
601,063
661,279
-
177,300
-
476,781
1,469,880
2,121,972
287,100
-
-
1,287,828
1,735,044
463,277
-
-
-
7,743
50,971
60,860
-
-
-
84,153
84,153
28,265
19
-
-
9,979
103,637
123,629
-
-
74,969
2,606,430
2,989,643
7,021,659
-
-
15,057
2,398
23,142
21,532
838,382
-
-
533,276
1,377,440
1,257,756
-
-
-
448,900
716,398
592,231
$
6,610,970
$ 3,939,383
$
1,659,591
$
37,177,108
$
66,380,288
$
55,637,320
$
376,162
$ 260,935
$
15,428
$
2,642,133
$
3,392,256
$
1,499,310
-
-
-
48,765
481,126
483,486
-
-
-
850,728
1,933,054
4,345,114
49,155
22,064
116,775
305,649
528,799
544,078
3,685
-
536
7,758
54,598
51,347
4,027,585
-
219,814
454,847
4,702,746
2,685,413
1
-
(1)
1
61,241
30,305
-
-
-
601,063
3,251,063
3,521,279
4,456,588
282,999
352,552
4,910,944
14,404,883
13,160,332
-
-
-
-
-
5,144
19
-
-
615,174
708,832
118,485
838,382
-
90,026
2,536,909
3,785,030
8,300,947
-
-
-
-
1,056,418
2,795,762
838,401
-
90,026
3,152,083
5,550,280
11,220,338
-
-
-
91,896
135,124
89,125
-
-
-
9,649,776
9,649,776
4,969,881
-
-
-
2,531,015
2,531,015
2,136,969
1,315,981
3,656,384
1,217,013
17,517,454
27,600,260
23,224,182
-
-
-
(676,060)
6,508,950
836,493
1,315,981
3,656,384
1,217,013
29,114,081
46,425,125
31,256,650
$
6,610,970
$ 3,939,383
$
1,659,591
$
37,177,108
$
66,380,288
$
55,637,320
35
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Cottage
Grove
yl,05PCritY Mott
36
City of Cottage Grove
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2021
With Comparative Totals for December 31, 2020
2021 2020
Total Fund Balances - Governmental Funds $ 46,425,125 $ 31,256,650
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 funds.
Cost of capital assets 325,308,502 312,766,986
Less accumulated depreciation (80,598,217) (74,327,816)
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 -tern liabilities at year-end consist of:
Bond principal payable
(44,015,000)
(40,005,000)
Unamortized bond premium
(1,169,230)
(1,036,364)
Net pension liability
(6,714,207)
(9,851,290)
Compensated absences payable
(1,049,891)
(999,562)
Total OPEB liability
(487,041)
(301,090)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes
104,269
124,283
Special assessments
4,389,593
8,300,293
Deferred intergovernmental grants receivable
1,056,417
2,795,762
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
(456,906)
(336,673)
Deferred inflows of resources related to city pensions
(11,197,243)
(3,671,312)
Deferred outflows of resources related to fire relief pensions
24,133
-
Deferred inflows of resources related to OPEB
(14,338)
(18,835)
Deferred outflows of resources related to city pensions
9,114,355
3,327,465
Deferred outflows of resources related to OPEB
215,435
37,852
The Fire Relief Association net pension asset created through contributions
to a defined benefit pension plan which is not recognized in the
governmental funds.
1,741,271
1,989,839
Governmental funds do not report a liability for accrued interest due and
payable.
(482,064)
(487,378)
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 1,286,296 1,906,917
Total net position - governmental activities $ 243,481,259 $ 231,470,727
See notes to basic financial statements. 37
City of Cottage Grove
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
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)
$ 14,691,272
$ 261
$ 249,975
$
4,219
112,946
624,882
3,181,740
-
-
1,065,768
-
1,739,345
1,758,070
-
-
-
-
-
59,431
148,726
-
-
(63,605)
(13,649)
(665)
61,554
-
-
119,381
-
-
239,255
20,967,125
99,558
308,741
2,603,482
2,485,436 1,215 419
2,329,259 - -
9,589,132 - -
2,844,019 - 2,093
2,444,169 - -
193,386 - -
- - 509,458
36,400 - -
- - 27,551
19,921,801 1,215 27,970 511,551
1,045,324 98,343 280,771 2,091,931
616,890 108,381 46,449
(833,211) (668,813) - (168,982)
(216,321) (560,432) 46,449 (168,982)
829,003 (462,089) 327,220 1,922,949
12,275,376 2,678,622 (2,910,591) (3,538,824)
$ 13,104,379 $ 2,216,533 $ (2,583,371) $ (1,615,875)
See notes to basic financial statements. 38
Capital Projects
Totals
Water
Developer
Nonmajor
Future Projects
Connection and
Petitioned
Governmental
(510, 810)
Area (575)
Projects (568)
Funds
2021
2020
$ 5
$ -
$ -
$ 2,573,231
$ 17,514,744
$ 16,887,233
-
-
615,326
615,326
596,537
-
23,467
23,467
22,699
-
-
-
1,427,233
1,427,233
1,321,659
325,282
-
6,160,238
1,192,535
8,420,102
6,085,906
-
-
-
-
3,181,740
2,480,933
523,383
-
104,157
627,540
444,907
-
2,954,885
4,902,271
10,662,269
20,635,136
-
5,211,611
6,969,681
5,062,505
-
-
435,449
494,880
492,206
-
-
43,310
192,036
141,380
(7,390)
(19,461)
(3,016)
(161,284)
(269,070)
527,309
-
-
19,395
19,395
21,895
-
1,916,355
3,376,744
5,293,099
2,563,422
27,930
1,986,872
2,014,802
1,110,209
-
-
191,500
253,054
392,563
104,243
-
-
308,415
771,294
758,658
945,523
4,879,709
6,157,222
22,250,232
58,211,592
59,545,157
-
-
-
17,865
2,504,935
5,122,412
-
2,329,259
1,753,836
-
-
-
668,069
10,257,201
8,186,255
104,159
1,308,261
698,096
1,954,060
6,910,688
6,257,352
117,729
-
-
3,406,981
5,968,879
4,646,429
-
-
823,036
823,036
539,092
-
172,732
172,732
305,358
-
-
-
-
193,386
619,601
20,670
1,376,898
1,778,104
11,234,243
14,919,373
25,135,487
-
-
-
2,464,672
2,501,072
2,240,389
3,785,000
3,785,000
2,435,000
-
-
-
1,316,683
1,344,234
1,352,629
242,558
2,685,159
2,476,200
25,843,341
51,709,795
58,593,840
702,965
2,194,550
3,681,022
(3,593,109)
6,501,797
951,317
-
-
-
3,267
3,267
13,771
7,795,000
7,795,000
-
235,748
235,748
-
2,126,124
2,897,844
5,094,561
(594,175)
(2,265,181)
(4,267,119)
-
9,565,964
8,666,678
841,213
702,965
2,194,550
3,681,022
5,972,855
15,168,475
1,792,530
613,016
1,461,834
(2,464,009)
23,141,226
31,256,650
29,464,120
$ 1,315,981
$ 3,656,384
$ 1,217,013
$ 29,114,081
$ 46,425,125
$ 31,256,650
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021 2020
Total net change in fund balances - governmental funds $ 15,168,475 $ 1,792,530
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
14,293,017
26,884,397
Developer contributed assets
6,560,657
4,632,858
Depreciation expense
(7,059,184)
(6,409,582)
Loss on disposal
(136,416)
(128,291)
Assets contributed to business -type activities
(7,469,184)
(3,263,303)
Compensated absences are recognized as paid in the governmental funds but
recognized as the expense is incurred in the Statement of Activities.
(50,329)
(72,491)
OPEB expenses are recognized as paid in the governmental funds but recognized
as the expense is incurred in the Statement of Activities.
3,871
3,994
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.
3,785,000
2,435,000
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 5,314 111,519
Amortization of bond discounts and premiums 102,883 99,963
Proceeds from long-term debt are recognized as an other financing source in the
governmental funds but as a decrease in net position in the Statement of Activities. (7,795,000)
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 (235,748)
Governmental funds recognized pension contributions as expenditures at the time
of payment whereas the Statement of Activities factors in items related to pensions 1,127,857 931,948
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 (19,781) (5,874)
Special assessments (3,910,933) (1,768,796)
Loans and grants receivable (1,739,345) 2,619,587
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. (620,622) (460,825)
Change in net position - governmental activities $ 12,010,532 $ 27,402,634
See notes to basic financial statements. 40
City of Cottage Grove
Statement of Net Position - Proprietary Funds
December 31, 2021
Business -Type
Activities - Enterprise Funds
Governmental
Cottage Grove
Activities -
Street Light
EMS Fund
Water
Sewer
Internal Service
Fund (630)
(660)
Operating (610)
Operating (620)
Total
Funds
Assets
Current assets
Cash and investments
$ 473,383
$ -
$ 8,067,632
$ 3,254,956
$ 11,795,971
719,924
Accounts receivable
149,890
2,311,386
432,917
558,887
3,453,080
96,357
Interfund loan receivable
-
-
57,261
-
57,261
-
Due from other governments
10,757
40,811
19,252
70,820
-
Due from other funds
-
-
-
-
631,585
Inventories
-
-
-
146,581
Prepaid items
2,337
2,480
4,817
273,103
Total current assets
623,273
2,324,480
8,601,101
3,833,095
15,381,949
1,867,550
Noncurrent assets
Interfund loan receivable
-
-
-
2,650,000
2,650,000
-
Capital assets
Land and land improvements
2,760,015
154,785
2,914,800
424,665
Buildings and improvements
7,616,850
-
7,616,850
928,870
Equipment and furniture
-
-
-
70,127
Machinery and equipment
109,567
957,849
1,188,479
372,008
2,627,903
504,229
Other improvements
10,219,075
-
-
-
10,219,075
-
Water and sewer lines
60,057,399
38,085,987
98,143,386
-
Total capital assets
10,328,642
957,849
71,622,743
38,612,780
121,522,014
1,927,891
Accumulated depreciation
(3,556,279)
(412,749)
(20,309,764)
(10,039,840)
(34,318,632)
(1,012,377)
Net capital assets
6,772,363
545,100
51,312,979
28,572,940
87,203,382
915,514
Total noncurrent assets
6,772,363
545,100
51,312,979
31,222,940
89,853,382
915,514
Total assets
7,395,636
2,869,580
59,914,080
35,056,035
105,235,331
2,783,064
Deferred Outflows of Resources
Deferred ouflows ofresources related to pensions
65,120
1,056,077
256,662
104,184
1,482,043
387,323
Deferred outflows of resources related to OPEB
2,909
17,245
10,595
4,683
35,432
17,778
Total deferred outflows of resources
68,029
1,073,322
267,257
108,867
1,517,475
405,101
Total assets and deferred outflows
ofresources
$ 7,463,665
$ 3,942,902
$ 60,181,337
$ 35,164,902
$ 106,752,806
$ 3,188,165
Liabilities
Current liabilities
Accounts payable
$ 61,229
$ 17,554
$ 67,515
$ 62,928
$ 209,226
$ 313,454
Salaries payable
5,333
92,011
29,654
6,595
133,593
40,598
Due to other funds
-
57,261
-
-
57,261
631,585
Due to other governments
428
4,260
64,028
88,565
157,281
59,599
Deposits payable
-
-
-
106,400
106,400
-
Compensated absences payable
4,997
66,420
52,538
18,207
142,162
65,995
Total current liabilities
71,987
237,506
213,735
282,695
805,923
1,111,231
Noncurrent liabilities
Compensated absences payable
2,923
4,495
11,640
3,668
22,726
19,007
Net pension liability
81,408
551,432
320,858
130,242
1,083,940
484,199
Total OPEB liability
6,576
38,986
23,952
10,587
80,101
40,192
Total noncurrent liabilities
90,907
594,913
356,450
144,497
1,186,767
543,398
Total liabilities
162,894
832,419
570,185
427,192
1,992,690
1,654,629
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
75,381
1,328,066
297,103
120,599
1,821,149
448,350
Deferred inflows of resources related to OPEB
194
1,148
705
312
2,359
1,183
Total deferred inflows ofresources
75,575
1,329,214
297,808
120,911
1,823,508
449,533
Net Position
Net investment in capital assets
6,772,363
545,100
51,312,979
28,572,940
87,203,382
915,514
Unrestricted
452,833
1,236,169
8,000,365
6,043,859
15,733,226
168,489
Total net position
7,225,196
1,781,269
59,313,344
34,616,799
102,936,608
1,084,003
Total liabilities, deferred inflows
of resources, and net position
$ 7,463,665
$ 3,942,902
$ 60,181,337
$ 35,164,902
$106,752,806
$ 3,188,165
Net position proprietary funds
102,936,608
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.
(202,292)
Net position business -type activities
$ 102,734,316
See notes to basic financial statements.
41
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
City of Cottage Grove
Statement of Revenues, Expenses, and Changes
in Fund Net Position - Proprietary Funds
For the Year Ended December 31, 2021
Business -Type Activities - Enterprise Funds
Cottage Grove
Street Light EMS Fund Water Sewer
Fund (630) (660) Operating (610) Operating (620)
$ 747,974 $ 2,446,021 $ 3,382,209 $ 3,336,966
294,300 - 222,210 -
1,042,274 2,446,021 3,604,419 3,336,966
179,255 1,523,488 721,502 315,894
55,984 147,401 238,788 8,963
266,311 - - -
543,709 241,796 1,058,614 543,695
- - - 1,995,516
208,349 79,339 1,381,023 656,565
1,253,608 1,992,024 3,399,927 3,520,633
(211,334) 453,997 204,492 (183,667)
(3,293) (1,392) (46,384) (17,401)
- - 138 27,413
(55,064) - -
- 112,983 34,711 -
73,237 80,085 44,743 16,028
69,944 136,612 33,208 26,040
(141,390) 590,609 237,700 (157,627)
460,202 - 10,828,078 2,539,951
(48,650) (95,000) (245,601) (243,412)
270,162 495,609 10,820,177 2,138,912
6,955,034 1,285,660 48,493,167 32,477,887
$ 7,225,196 $ 1,781,269 $ 59,313,344 $ 34,616,799
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
See notes to basic financial statements. 42
Governmental
Activities - Internal
Total Service Funds
$ 9,913,170 $ 4,629,244
516,510 -
- 124,260
10,429,680 4,753,504
2,740,139
3,381,532
451,136
701,381
266,311
-
2,387,814
1,171,278
1,995,516
-
-
145,677
2,325,276
53,260
10,166,192
5,453,128
263,488 (699,624)
(68,470) (9,249)
27,551 -
(55,064) (16,479)
147,694 -
214,093 8,704
265,804 (17,024)
529,292 (716,648)
13,828,231
(632,663)
13,724,860 (716,648)
89,211,748 1,800,651
$ 102,936,608 $ 1,084,003
$ 13,724,860
(96,026)
13,628,834
43
Statement of Cash Flows -
Proprietary Funds
For the Year Ended December 31, 2021
Business -Type
Activities - Enterprise Funds
Governmental
Cottage Grove
Activities -
Street Light
EMS Fund
Water
Sewer
Internal Service
Fund (630)
(660)
Operating (610)
Operating (620)
Total
Fund
Cash Flows - Operating Activities
Receipts from customers and users
$ 1,020,960
$ 1,516,895
$ 3,552,229
$ 3,350,285
$ 9,440,369
$ 4,545,801
Receipts from insurance refunds and reimbursements
-
-
-
-
-
124,260
Payments to suppliers
(831,181)
(384,487)
(1,264,243)
(2,407,758)
(4,887,669)
(1,947,884)
Payments to employees
(176,500)
(1,621,494)
(762,002)
(293,324)
(2,853,320)
(3,318,930)
Miscellaneous revenue
73,237
80,085
44,743
16,028
214,093
8,703
Net cash flows - operating activities
86,516
(409,001)
1,570,727
665,231
1,913,473
(588,050)
Cash Flows - Noncapital
Financing Activities
Advances to/from Other Funds 57,261 - 182,500 239,761 1
Intergovernmental revenue - 112,983 34,711 - 147,694 -
Transfer from Other Funds - - -
Transfer to other funds (48,650) (95,000) (245,601) (243,412) (632,663)
Net cash flows - noncapital
financing activities (48,650) 75,244 (210,890) (60,912) (245,208) 1
Cash Flows - Capital Related
Financing Activities
Principal Paid on Debt - - - - - -
Interest Paid on Debt
Long -Term Debt Proceeds - - - -
Proceeds from sale of capital assets 29,726 (1) (1) 29,724
Acquisition of capital assets (281,236) (95,095) (376,331)
Net cash flows - capital related
financing activities (251,510) (1) (95,096) (346,607)
Cash Flows - Investing Activities
Interest and dividends received
(3,292)
(1,392)
(46,384)
(17,401)
(68,469)
(9,249)
Interest on interfund loan
138
27,413
27,551
Payment received on interfund loan
(29,761)
(29,761)
Net cash flows - investing activities
(3,292)
(1,392)
(76,007)
1Q012
(70,679)
(9,249)
Net change in cash and cash equivalents
34,574
(586,659)
1,283,829
519,235
1,250,979
(597,298)
Cash and Cash Equivalents
January 1
438,809
586,659
6,783,803
2,735,721
10,544,992
1,317,222
December 31
$ 473,383
$
$ 8, 667,632 $
3, 554,956
$ 11, 995,971
$ 119,924
Reconciliation of Operating Loss
to Net Cash Flows - Operating Activities
Operating loss
$ (211,334)
$ 453,997 $
204,492 $
(183,667)
$ 263,488
$ (699,624)
Adjustments to reconcile operating loss to
income (loss) to net cash
net cash flows - operating activities
Depreciation expense
208,349
79,339
1,381,023
656,565
2,325,276
53,260
Miscellaneous revenue
73,237
80,085
44,743
16,028
214,093
7,590
Pension expense
1,662
(110,975)
(52,119)
21,341
(140,091)
40,821
Receivables
(21,314)
(929,126)
(52,190)
13,319
(989,311)
(82,330)
Prepaid items
(275)
(63)
166,293
165,955
149,010
Inventory
-
-
-
-
-
(25,438)
Accounts payable
34,395
6,201
(5,255)
45,965
81,306
(104,955)
Due to other governmental units
428
(1,216)
38,477
(71,842)
(34,153)
51,835
Salaries payable
806
(1,594)
8,179
(1,541)
5,850
8,167
Compensated absences payable
(64)
13,173
3,317
1,170
17,596
11,499
OPEB expense
351
1,390
123
1,600
3,464
2,115
Total adjustments
297,850
(862,998)
1,366,235
848,898
1,649,985
111,574
Net cash flows - operating activities
$ 86,516
$ (409,001) $
1,570,727 $
665,231
$ 1, 113,473
$ (588,050)
Noncash Investing, Capital, and
Noncash Investing, Capital, and Financing Activities
Financing Activities
Capital asset contributions from governmental activities $ 112,934 $ $ 6,856,432 $ 499,818 $ 7,469,184 $
Capital asset contributions from developers 347,268 3,971,646 2,040,133 6,359,047
Loss on disposal of capital asset (55,064) (55,064)
Total Noncash Activities $ 460,202 $ (55,064) $ 10,828,078 $ 2,539,951 $ 13,773,167 $
See notes to basic financial statements. 44
City of Cottage Grove
Notes to Basic 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 Basic 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.
Descriptions of Funds:
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 Basic Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Descriptions of Funds: (Continued)
Major Governmental Funds: (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 Fund— 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 interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures, or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are 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.
47
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for goods services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from 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.
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Legal Compliance — Budgets (Continued)
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.
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:
Nonmaj or Funds
Storm Water Maintenance
Fines/Seizures
Ice Arena
Golf Course
F. Deposits and Investments
Final Budget
Actual
Over Budget
$ 578,950
$ 788,374
$ 209,424
29,500
59,559
30,059
863,140
951,523
88,383
2,017,740
2,357,544
339,804
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 Basic 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, 2021, are planned to be eliminated in 2022. 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 Basic 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, 2021, were $1,220,000.
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 Basic 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, 2021, 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 Basic 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 Basic 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 interf ind 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 Basic 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, 2021, 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 Basic 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 (A1, P1), 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 — The 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 $ 7,026,138 $ 1,003,445 $ 6,022,693 $ AA+/Aaa S&P/Moody's
Freddie Mac - FHLMC 2,476,365 500,125 1,976,240 AA+/Aaa S&P/Moody's
Federal Farm Credit Bank 4,209,872 499,710 3,710,162 AA+/Aaa S&P/Moody's
Federal National Mortgage Association - FNMA 4,439,946 450,261 3,989,685 AA+/Aaa S&P/Moody's
US Treasury 2,495,430 - 2,495,430 AA+/Aaa S&P/Moody's
Municipal Obligations 20,139,677 4,782,991 15,029,744 326,942 AA+/Aaa S&P/Moody's
Pooled Money Markets 7,097,957 7,097,957 - - NR N/A
Negotiable CD's 10,248,530 1,977,355 8,271,175 - NR N/A
Total Pooled Investments 58,133,915 $ 16,311,844 $ 41,495,129 $ 326,942
Deposits 9,448,143
Petty Cash and Change 13,767
Total Cash and Investments $ 67,595,825
56
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Custodial Credit Risk — 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 party. 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 Home Loan Bank - FHLB
Federal National Mortgage Association - FNMA
Federal Farm Credit Bank
Fair
Value
Percent
$ 7,026,138
12%
4,439,946
8%
4,209,872
7%
The City has the following recurring fair value measurements as of December 31, 2021:
• $2,495,430 of $58,133,915 are valued using quoted market prices (Level 1 inputs).
• $55,638,485 of $58,133,915 are valued using a matrix pricing model (Level 2 inputs).
57
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 3 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2021, 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
Balance (Reclassed) Increases Decreases Balance
$ 18,105,944
$ -
$ 45,000
$ 18,060,944
1,157,202
-
-
1,157,202
12,756,257
12,646,443
18,898,253
6,504,447
32,019,403
12,646,443
18,943,253
25,722,593
63,489,125
-
15,803
63,473,322
1,956,811
-
96,220
1,860,591
14,377,747
1,092,902
706,817
14,763,832
9,360,030
3,028,748
153,371
12,235,407
143,491,322
12,340,920
-
155,832,242
42,266,347
3,120,158
-
45,386,505
7,826,126
135,775
-
7,961,901
282,767,508
19,718,503
972,211
301,513,800
15,493,152
1,690,898
15,803
17,168,247
1,470,512
125,046
79,741
1,515,817
7,984,664
873,346
616,194
8,241,816
4,740,437
388,636
152,580
4,976,493
33,454,584
2,988,243
-
36,442,827
10,510,013
875,027
-
11,385,040
1,709,126
171,228
-
1,880,354
75,362,488
7,112,424
864,318
81,610,594
207,405,020
12,606,079
107,893
219,903,206
$ 239,424,423 $ 25,252,522 $ 19,051,146 $ 245,625,799
58
City of Cottage Grove
Notes to Basic 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 $ 2,395,212 $
39,803 -
7,616,850 -
2,463,099 376,331
9,758,873 460,202
87,170,569 10,972,817
- $ 2,874,997
39,803
- 7,616,850
211,526 2,627,904
- 10,219,075
98,143,386
107,049,194
11,809,350
211,526
118,647,018
13,923
794
-
14,717
3,149,848
290,845
-
3,440,693
1,632,198
159,229
126,737
1,664,690
3,271,159
175,723
-
3,446,882
24,052,966
1,698,685
-
25,751,651
32,120,094
2,325,276
126,737
34,318,633
74,929,100
9,484,074
84,789
84,328,385
$ 75,408,885
$ 11,879,286 $
84,789
$ 87,203,382
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities
General government
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
$ 274,954
1,451,364
4,343,828
1,042,278
$ 7,112,424
$ 208,349
79,339
1,381,023
656,565
$ 2,325,276
59
City of Cottage Grove
Notes to Basic 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, 2021, the governmental long-term debt of the financial reporting entity consisted of the
following:
Interest Issue Final Original Principal
Rate Date 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 2/1/2024 $ 1,405,000 $ 820,000
General Obligation Capital Improvement Bonds
G.O. CIP Bonds of 2017A 2.50-3.25% 5/11/2017 2/l/2038 9,155,000 8,090,000
G.O. CIP Bonds of 2019A 3.00-4.00% 2/14/2019 2/1/2040 4,090,000 3,945,000
Total General Obligation Capital Improvement Bonds 13,245,000 12,035,000
G.O. Refunding Bonds of 2016A
Equipment Certificate 2019B
Special Assessment Bonds with Government Commitment
G.O. Improvement Bonds of 2013A
G.O. Improvement Bonds of 2015A
G.O. Improvement Bonds of 2016B
G.O. Improvement Bonds of 2018A
G.O. Improvement Bonds of 2021A
G.O. Improvement Refunding Bonds of 2021B
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
3.00%
2/14/2019
2/l/2029
3.00-3.50%
9/26/2013
2/l/2029
2.50-3.00%
5/27/2015
2/l/2031
2.00-2.10%
11/16/2016
2/l/2033
3.00%
6/26/2018
2/l/2035
1.65%-2.00%
6/10/2021
2/1/2037
1.10%-2.00%
12/9/2021
2/l/2029
4,660,000 2,210,000
2,845,000 2,340,000
7,345,000
4,365,000
5,700,000
3,940,000
4,275,000
3,300,000
7,620,000
7,210,000
3,950,000
3,955,000
3,955,000
3,840,000
32,845,000
26,610,000
-
1,169,230
55,000,000
45,184,230
1,134,893
$ 55,000,000
46,319,123
164,888
$ 46,484,011
$ 10,219
City of Cottage Grove
Notes to Basic 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,
2022
2023
2024
Total
Year Ending
December 31,
Principal
Tax Increment Bonds
Governmental Activities
Interest Total
$ 255,000 $ 31,872 $ 286,872
275,000 19,810 294,810
290,000 6,743 296,743
$ 820,000 $ 58,425 $ 878,425
Special Assessment Bonds
Governmental Activities
Principal Interest Total
2022
$
5,430,000
$
630,161 $
6,060,161
2023
1,840,000
475,668
2,315,668
2024
1,880,000
430,243
2,310,243
2025
1,915,000
383,893
2,298,893
2026
1,955,000
337,568
2,292,568
2027-2031
9,095,000
1,025,035
10,120,035
2032-2036
4,200,000
230,480
4,430,480
2037
295,000
2,434
297,434
Total
$
26,610,000
$
3,515,482 $
30,125,482
G.O. Refunding Bonds
Year Ending
Governmental Activities
December 31,
Principal
Interest
Total
2022
$
350,000
$
49,650 $
399,650
2023
355,000
39,075
394,075
2024
365,000
28,275
393,275
2025
375,000
19,050
394,050
2026
380,000
11,500
391,500
2027
385,000
3,850
388,850
Total
$
2,210,000
$
151,400 $
2,361,400
61
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 4 - LONG-TERM DEBT (CONTINUED)
B. Minimum Debt Payments (Continued)
G.O. CIP Bonds
Year Ending
Governmental Activities
December 31,
Principal Interest
Total
2022
$
525,000 $ 357,784 $
882,784
2023
545,000 340,209
885,209
2024
560,000 322,059
882,059
2025
580,000 303,309
883,309
2026
600,000 283,884
883,884
2027-2031
3,270,000 1,147,875
4,417,875
2032-2036
3,750,000 646,235
4,396,235
2037-2040
2,205,000 108,397
2,313,397
Total
$
12,035,000 $ 3,509,752 $
15,544,752
Equipment Certificates
Year Ending
Governmental Activities
December 31,
Principal Interest
Total
2022
$
265,000 $ 66,225 $
331,225
2023
270,000 58,200
328,200
2024
280,000 49,950
329,950
2025
285,000 41,475
326,475
2026
295,000 32,775
327,775
2027-2029
945,000 43,125
988,125
Total
$
2,340,000 $ 291,750 $
2,631,750
62
City of Cottage Grove
Notes to Basic 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 Ending Due Within
Balance Additions Retirements Balance One Year
$ 16,180,000 $ - $ 1,115,000 $ 15,065,000
21,230,000 7,795,000 2,415,000 26,610,000
2,595,000 - 255,000 2,340,000
1,036,364 235,749 102,883 1,169,230
41,041,364 8,030,749 3,887,883 45,184,230
$ 1,130,000
5,430,000
265,000
o,BLJ,000
Compensated absences payable 1,073,065 974,812 912,984 1,134,893 894,670
Total governmental activities 42,114,429 9,005,561 4,800,867 46,319,123 7,719,670
Business -type activities
Compensated absences payable 147,292 175,204 157,608 164,888 142,162
Total primary government $ 42,261,721 $ 9,180,765 $ 4,958,475 $ 46,484,011 $ 7,861,832
Component Unit
Economic Development Authority
Compensated absences payable $ 10,145 $ 7,765 $ 7,691 10,219 $ 10,219
For the governmental activities, compensated absences are generally liquidated by the General Fund.
All long-term bonded indebtedness outstanding at December 31, 2021, is backed by the full faith and
credit of the City, including special assessment and revenue bond issues. Delinquent assessments
receivable at December 31, 2021, totaled $22,510.
NOTE 5 — PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended December 31,
2021, was $200,060. The components of pension expense are noted in the following plan summaries.
The General Fund, 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 Basic 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.
Ell
City of Cottage Grove
Notes to Basic 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. The postretirement increase is fixed at
1 %. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30
before the effective date of the increase will receive the full increase. Recipients receiving the annuity or
benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the
increase will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state Legislature.
General Employees Plan Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2021 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, 2021, were $595,200.
The City's contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal
year 2021 and the City was required to contribute 17.7% for Police and Fire Plan members. The City's
contributions to the Police and Fire Fund for the year ended December 31, 2021, were $1,050,974. The
City's contributions were equal to the required contributions as set by state statute.
General Employees Fund Pension Costs
At December 31, 2021, the City reported a liability of $4,530,946 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 $138,442.
65
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs
General Employees Fund Pension Costs (Continued)
The net pension liability was measured as of June 30, 2021, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportion of the net pension liability was based on the City's contributions received by PERA during
the measurement period for employer payroll paid dates from July 1, 2020, through June 30, 2021,
relative to the total employer contributions received from all of PERA's participating employers. The
City's proportionate share was 0.1061 % at the end of the measurement period and 0.0967% for the
beginning of the period.
City's proportionate share of the net pension liability $ 4,530,946
State of Minnesota's proportionate share of the net pension
liability associated with the City 138,442
Total $ 4,669,388
For the year ended December 31, 2021, the City recognized pension expense of $340,078 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $17,504 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 Basic 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, 2021, 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
Deferred
Outflows of
Inflows of
Resources
Resources
$ 24,295
$ 137,238
-
90,115
2,766,501
3,952,822
536,019
15,256
297,600
-
$ 3,624,415 $ 4,195,431
The $297,600 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:
Pension
Year Ending Expense
December 31, Amount
2022
$ (8,826)
2023
118,442
2024
91,985
2025
(1,070,277)
Total
$ (868,676)
67
City of Cottage Grove
Notes to Basic 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, 2021, the City reported a liability of $3,828,202 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2021,
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, 2020, through June 30, 2021, relative to the total employer contributions received from all
of PERA's participating employers. At June 30, 2021, the City's proportionate share was 0.5018% at the
end of the measurement period and 0.4772% for the beginning of the period.
The State of Minnesota also contributed $18 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2021. The contribution consisted of $9 million in direct state aid that does meet the
definition of a special funding situation and $9 million in supplemental state aid that does not meet the
definition of a special funding situation. The $9 million direct state aid was paid on October 1, 2020.
Thereafter, by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full
funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will
continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota
State Retirement System) is 90% funded, whichever occurs later. Strong asset returns for the fiscal year
ended 2021 will accelerate the phasing out of these state contributions, although it is not anticipated that
they will be phased out during the fiscal year ended 2022.
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
(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 ($140,018) for its
proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City
recognized $47,196 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $9 million to the Police and Fire Fund.
The State of Minnesota is not included as a non -employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City also
recognized $174,149 for the year ended December 31, 2021, 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 Basic 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, 2021, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the following:
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
Differences between expected and actual economic
experience
$ 729,648
$ -
Changes in actuarial assumptions
5,692,830
1,870,286
Net collective difference between projected and
actual investment earnings
-
7,425,262
Change in proportion
472,277
46,820
Contributions paid to PERA subsequent to the measurement
date
525,487
-
Total
$ 7,420,242 $ 9,342,368
The $525,487 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, 2022. Other amounts reported as deferred outflows and inflows
of resources related to pensions from the following sources:
Year Ending
December 31,
2022
2023
2024
2025
2026
Total
Pension
Expense
Amount
$ (2,272,655)
(363,825)
(409,763)
(701,662)
1,300,292
$ (2,447,613)
.'
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Long -Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best -estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the table on the following
page.
Long -Term
Target Expected Real
Asset Class Allocation Rate of Return
Domestic equity
33.5 %
5.10 %
Internatinoal equity
16.5
5.30
Fixed incom
25.0
0.75
Private Markets
25.0
5.90
Total
100 %
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2021, actuarial valuation was determined using an individual
entry -age normal actuarial cost method. The long-term rate of return on pension plan investments used
in the determination of the total liability is 6.5%. This assumption is based on a review of inflation and
investments return assumptions from a number of national investment consulting firms. The review
provided a range of return investment return rates deemed to be reasonable by the actuary. An
investment return of 6.5% was deemed to be within that range of reasonableness for financial reporting
purposes.
Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the Police and Fire
Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees. The Police
and Fire Plan benefit increase is fixed at 1 % per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25%
after one year of service to 3.0% after 29 years of service and 6.0% per year thereafter. In the Police and
Fire Plan, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years
of service.
70
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 5 —PENSION PLANS (CONTINUED)
F. Actuarial Methods and Assumptions (Continued)
Public Employees' Retirement Association (Continued)
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit PERA's experience.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The most recent
four-year experience study for the General Employees Plan was completed in 2019. The assumption
changes were adopted by the Board and became effective with the July 1, 2020, actuarial valuation. The
most recent four-year experience study for the Police and Fire Plan was completed in 2020 and was
adopted by the Board and became effective with the July 1, 2021, actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2021:
General Employees Fund
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
• The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
• There have been no changes since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
• The inflation assumption was changed from 2.5% to 2.25%.
• The payroll growth assumption was changed from 3.25% to 3.0%.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
• The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to the
Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement
according to scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service -based rates.
The changes resulted in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
71
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
G. Discount Rate
The discount rate used to measure the total pension liability in 2021 was 6.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from Plan members and employers
will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions
of the General Employees Fund and the Police and Fire Fund were projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
H. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
City's proportionate share of
the General Employees Fund
net pension liability
City's proportionate share of
the Police and Fire Fund
net pension liability
Discount Rate Discount Rate Discount Rate
(5.5%) (6.5%) (7.5%)
$ 9,240,816
1 % Decrease in
Discount Rate
$ 4,530,946
Current
Discount Rate
666,209
1 % Increase in
Discount Rate
(5.5%) (6.5%) (7.5%)
$ 12,448,779 $ 3,828,202 $ (3,077,319)
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately -issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained on the Internet at www.mnpera.org.
J. Public Employees Defined Contribution Plan (Defined Contribution Plan)
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.
72
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 5 — PENSION PLANS (CONTINUED)
J. Public Employees Defined Contribution Plan (Defined Contribution Plan) (Continued)
The defined contribution plan consists of individual accounts paying a lump -sum benefit. Plan benefits
depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses;
therefore, there is no future liability to the City. Minnesota Statutes, Chapter 353D.03, specifies plan
provisions, including the employee and employer contribution rates for those qualified personnel who
elect to participate. An eligible elected official who decides to participate contributes 5% of salary which
is matched by the elected official's employer. For ambulance service personnel, employer contributions
are determined by the employer, and for salaried employees must be a fixed percentage of salary.
Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty.
Employees who are paid for their services may elect to make member contributions in an amount not to
exceed the employer share. Employer and employee contributions are combined and used to purchase
shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For
administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1%
(.25%) of the assets in each member's account annually.
Pension expense for the year is equal to the contributions made. Total contributions made by the City
during fiscal year 2021 were:
Contribution Amount
Employee Employer
$ 1,292 $ 1,292
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
32active firefighters and 25 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%.
73
City of Cottage Grove
Notes to Basic 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 $234,524
in fire state aid to the fund for the year ended December 31, 2021. 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, 2021, were $0.
D. Pension Costs
At December 31, 2021, the City of Cottage Grove reported a net pension asset of $1,741,271 for the
Volunteer Firefighter Fund. The net pension asset was measured as of December 31, 2021. 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, 2021. The following table presents the changes in net pension liability during the year.
Balances at January 1, 2021
Changes for the year
Service cost
Interest cost
Actuarial expenses (gains)/losses
State contributions
Projected investment return
Change in benefit levels
Asset (gain)/loss
Benefit payments
Administrative expense
Net changes
Balances at December 31, 2021
Increase (Decrease)
Net Pension
Total Pension Plan Fiduciary Net Liability (Asset)
Liability (a) Position (b) (a) - (b)
$ 1,719,406 $ 3,709,245 $ (1,989,839)
118,397
103,853
30,166
580,945
(213,833)
234,524
352,396
(213,833)
(2,127)
118,397
103,853
30,166
(234,524)
580,945
(352,396)
2,127
619,528 370,960 248,568
$ 2,338,934 $ 4,080,205 $ (1,741,271)
Benefits were increased to $8,700 per year of service during the reporting period.
74
City of Cottage Grove
Notes to Basic 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, 2021 the City of Cottage Grove recognized pension expense of a
$344,668.
At December 31, 2021, the City of Cottage Grove reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Actuarial experience gain/loss
Difference between projected and actual investment earnings
Total
Deferred
Deferred
Outflows of
Inflows of
Resources
Resources
$ 24,633
$ 117,380
339,585
$ 24,633 $ 456,965
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31, Amount
2021
$ (126,726)
2022
(181,567)
2023
(104,104)
2024
(19,935)
Total
$ (432,332)
E. Actuarial Assumptions
The total pension liability at December 31, 2021, 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%
75
City of Cottage Grove
Notes to Basic 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
Discount Rate
(5.00%)
City's net pension liability (asset) $ (1,640,734)
Current
Discount Rate
(6.00%)
$ (1,741,271)
I % Increase in
Discount Rate
(7.00%)
$ (1,837,397)
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:
76
City of Cottage Grove
Notes to Basic 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
Total
Target Allocation
35 %
15
45
100 %
Expected
Return
of Return
5.10 %
5.90
0.75
0.00
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 2021 for the
Volunteer Firefighter Fund.
K. Pension Plan Fiduciary Net Position
Detailed information about the Volunteer Firefighter Fund's fiduciary net position as of December 31,
2021, is available in a separately -issued PERA financial report that includes financial statements and
required supplementary information. That report may be obtained at www.nmpera.org.
77
City of Cottage Grove
Notes to Basic 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, 2021, were:
Fund Total
Municipal Building Capital Projects Fund owed to Sewer Fund $ 2,650,000
Nonmajor Governmental Funds owed to Nonmajor Governmental Funds 601,063
Total $ 3,251,063
Interfund receivable and payable balances are used for temporary cash deficits. Interfund receivable and
payable balances at December 31, 2021, are as follows:
Fund Total
EMS Fund owed to Water Operating $ 57,261
MSA Construction Fund owed to Closed Debt Service 1,082,326
Nonmajor Governmental Funds owed to Closed Debt Service 152,204
Nonmajor Governmental Funds owed to General Fund 334,067
Nonmajor Governmental Funds owed to Nonmajor Governmental Fund 698,524
Internal Service Funds owed to Internal Service Funds 631,585
Total $ 2,955,967
Interfund transfers during the year ended December 31, 2021, were as follows:
Transfers In
Municipal
Nonmajor
General
Building
Closed Debt
Governmental
Fund (100)
Fund (525)
Fund (300)
Funds
Total
Transfers Out
General Fund (100)
$ -
$ 46,449
$ 108,381
$ 678,381
$ 833,211
Closed Debt Fund (300)
-
-
-
668,813
668,813
MSA Construction (520)
-
-
-
168,982
168,982
Nonmajor Governmental Funds
95,240
-
-
498,935
594,175
Street Light (630)
48,650
-
-
-
48,650
Cottage Grove EMS (660)
95,000
-
-
-
95,000
Water Operating (610)
186,000
-
-
59,601
245,601
Sewer Operating (620)
192,000
-
-
51,412
243,412
Total
$ 616,890
$ 46,449
$ 108,381
$ 2,126,124
$ 2,897,844
In
City of Cottage Grove
Notes to Basic 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 2021 were considered to be routine in nature as they
were related to services provided to another fund, fund balance policy transfers and funding construction
projects.
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, 2021, the City generated $1,427,233 in tax increment revenue and
made $439,147 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, 2021, the district generated $286,029 of tax increment and
$192,104 in payments on the pay as you go note were made. The balance due on the note at year
end was $729,574.
NOTE 8 — DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2021, as follows:
Fund
Major Governmental Funds
Amount The deficit fund balances will be resolved through
Municipal Building Fund (525) $ 2,583,371
MSA Construction (520) 1,615,875
Nonmajor Governmental Funds
Ice Arena (250) 577,292
HERO Center Operations (290) 28,629
2019B Equipment Certificates (305) 4,341
3M Settlement - MPCA 11,185
Future tax levies
Future MSA revenues
Future excess revenues and transfers from other City resources
Future excess revenues
Future tax levies
Future Settlement Proceeds
79
City of Cottage Grove
Notes to Basic 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 $222,469 reported in the Fund at December 31, 2021, 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
2021 $ 325,646 $
145,677
$ (248,854) $
222,469
2020 201,608
346,696
(222,658)
325,646
2019 170,124
200,669
(169,185)
201,608
City of Cottage Grove
Notes to Basic 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, 2021.
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, 2021, the City had various fund balances through legal restriction and City Council
authorization. Fund balance appropriations at December 31, 2021, are shown on the various balance
sheets as segregations of the fund balance. The fund balance classifications for governmental funds are
as follows:
Major Funds
Municipal
MSA
Closed
Future
Water Connection
Developer
Nonmajor
General
Building
Construction
Debt
Projects
and Area
Petitioned
Governmental
Fund(100)
Fund(525)
(520)
Fund(300)
(510,810)
Fund(575)
Projects
Funds
Total
Fund Balances
Nonspendable
Prepaid items
$ 43,228
$
$
$
$
$
$
$ 7,743
$ 50,971
Inventory
-
84,153
84,153
Restricted
Debt retirement
8,112,273
8,112,273
Forfeiture and seizure
-
-
-
-
-
-
-
72,712
72,712
Tax increment purposes
-
-
-
-
-
-
-
1,464,791
1,464,791
Committed
Golf course operations
110,039
110,039
Recycling program
73,224
73,224
Storm water activities
-
2,347,752
2,347,752
Assigned
Compensated absences
1,049,891
-
1,049,891
Future budgets
621,404
-
-
-
-
-
-
-
621,404
School bus safety
5,600
-
-
-
-
-
-
-
5,600
Debt retirement
-
2,216,533
-
2,216,533
Future pavement management
-
-
-
-
570,050
-
-
-
570,050
Tree mitigation
703,939
703,939
Future roads and trails
-
-
-
-
41,992
-
-
-
41,992
Equipment replacement
-
-
-
-
-
-
-
1,343,542
1,343,542
Street sealcoating
996,394
996,394
Economic decvelopment
-
-
-
-
-
-
-
4,684,912
4,684,912
Capital improvements
3,656,384
1,217,013
10,492,606
15,366,003
Unassigned
11,384,256
(2,583,371)
(1,615,875)
(676,060)
6,508,950
Total fund balances
$13,104,379
$(2,583,371)
$(1,615,875)
$ 2,216,533
$ 1,315,981
$ 3,656,384
$ 1,217,013
$29,114,081
$46,425,125
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 11— 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 2021, the City contributed $60,592 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 9
Active employees 146
Total 155
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of January 1, 2021, using the
following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Discount rate 2.06%
Inflation 2.25%
Healthcare cost trend increases 7.00% initially decreasing
to an ultimate rate of 4.14% by 2040
Mortality assumption Pub-2010 Mortality Table adjusted for moratlity
improvements using projecxtion scale MP-2020 by employee
class
RN
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 11— POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
E. Actuarial Assumptions (Continued)
The actuarial assumptions used in the January 1, 2021, valuation was based on the results of an actuarial
experience study dated June 30, 2019, for PERA's General Employees Retirement Plan and dated July
14, 2020, for PERA's PEPFF Plan.
The discount rate used to measure the total OPEB liability was 2.06% based on the Bond Buyer 20-
Bond Obligation Index.
F. Total OPEB Liability
The City's total OPEB liability of $613,642 was measured as of December 31, 2021, and was
determined by an actuarial valuation as of January 1, 2021.
Changes in the total OPEB liability are as follows:
OPEB
Liability
Balance at January 1, 2021 $ 374,505
Changes for the year
Service cost
25,083
Interest
13,939
Change in assumption
33,310
Difference between expected and
actual experience
227,397
Benefit payments
(60,592)
Net changes
239,137
Balance at December 31, 2021
$ 613,642
Changes of assumptions and other inputs reflect a change in the discount rate from 2.12% in 2019 to
2.06% in 2021 to reflect recent rate changes in the Bond Buyer 20-Bond General Obligation Index.
The general inflation rate was changed to the 2.25% used in the July 1, 2021 GERP and PEP&FP
actuarial valuations.
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 11— POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability (Continued)
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 2.06% 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
(1.06%)
$ 659,306
(2.06%)
613,642
(3.06%)
$ 571,667
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
$ 562,430
Total OPEB Liability
Current
613,642
1% increase
673,228
H. OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2021, the City recognized OPEB expense of $70,014. At
December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Differences between expected and actual economic experience
Changes of assumptions and other inputs
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
$ 200,187 $ 12,698
68,644 7,972
$ 268,831 $ 20,670
City of Cottage Grove
Notes to Basic 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,
2022
2023
2024
2025
2026
Thereafter
Total
NOTE 12 — OPERATING LEASES
Total
$ 30,992
30,992
30,992
30,992
31,370
92,823
$ 248,161
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 2021 to add a first
extension option to 2025. In 2021, $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
Cottage Grove
Year Ended
School District
Athletic
December 31
No. 833
Association
2022
$ 104,250
$ 400,000
2023
104,250
400,000
2024
104,250
400,000
2025
104,250
400,000
2026
104,250
400,000
2027-2029
312,750
1,200,000
Total
$ 834,000
$ 3,200,000
City of Cottage Grove
Notes to Basic Financial Statements
NOTE 13 — COMMITTED CONTRACTS
At December 31, 2021, the City had commitments of $1,988,051 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, 2021, a series of Industrial Revenue Bonds
were outstanding.
Original Issue 12/31/2021
Bond Issue Date Amount Balance
Maturity Date
Commercial Development Revenue Note - ESR, Inc.
11/22/05
$ 76,500
$ 14,993
11/22/25
Commercial Development Revenue Note - ESR, Inc.
05/19/05
853,000
183,051
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
18,635,195
05/01/34
Multifamily Housing Note - Legends of Cottage Grove
10/07/16
6,328,000
5,294,252
05/01/34
Total
$ 31,779,500
$ 30,227,491
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.
M.
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
Revenues
General property taxes
Special assessments
Licenses and permits
General government
Community development
Engineering
Public safety
Total licenses and permits
Intergovernmental revenues
Federal grants and aids
State grants and aids
Local government aid
Market value homestead credit
MSA maintenance - public works
PERA Aid
Fire relief aid - public safety
Police relief aid - public safety
Other - public safety
Other - planning
Local
SRO program - public safety
Other - public safety
Other - public works
Other - culture and recreation
Total intergovernmental
Charges for services
Investment charge - general government
Other - general government
Other - community development
Other - engineering
Other - public safety
Other - public works
Other - culture and recreation
Total charges for services
Fines and forfeitures - public safety
Investment earnings
Donations
General government
Public safety
Public works
Culture and recreation
Total donations
Miscellaneous
General government
Public safety
Public works
Total miscellaneous
Total revenues
2021
2020
Variance with
Budgeted Amounts Actual Final Budget -
Original Final Amounts Over (Under) Actual
$ 14,697,785 $ 14,697,785 $ 14,691,272 $ (6,513) $ 14,236,904
3,000
3,000
4,219
1,219
4,412
74,200
9,525
7,733
(1,792)
57,827
1,558,100
2,754,100
3,141,461
387,361
2,379,978
36,000
36,000
20,798
(15,202)
23,368
22,000
22,000
11,748
(10,252)
19,760
1,690,300
2,821,625
3,181,740
360,115
2,480,933
97,000
97,000
110,833
13,833
123,627
87,494
-
-
9,085
9,085
4,943
44,000
44,000
48,285
4,285
42,390
-
233,500
233,524
24
220,637
385,000
379,200
379,193
(7)
385,130
24,000
24,000
71,154
47,154
57,527
-
-
3,500
3,500
16,000
180,000
166,000
166,663
663
122,196
12,500
35,000
41,435
6,435
28,673
2,500
2,500
2,096
(404)
19,603
745,000
981,200
1,065,768
84,568
1,108,220
15,000
15,000
-
(15,000)
22,253
100
100
100
-
471
65,000
240,800
297,391
56,591
210,736
350,000
790,000
829,743
39,743
927,043
49,200
388,380
418,438
30,058
32,685
34,200
34,200
20,998
(13,202)
12,430
207,400
178,600
191,400
12,800
38,169
720,900
1,647,080
1,758,070
110,990
1,243,787
150,000 150,000
100,000 -
148,726
(63,605)
(1,274) 119,092
(63,605) 148,175
9,028
9,028
10,872
8,900
8,900
16,323
-
-
-
-
2,000
2,000
2,000
43,626
41,626
1,550
2,000
2,000
61,554
59,554
30,745
41,200
-
55,992
55,992
111,166
20,000
20,000
29,537
9,537
24,811
-
-
33,852
33,852
5,789
61,200
2Q000
119,381
99,381
141,766
18,170,185
20,322,690
20,967,125
644,435
19,514,034
City of Cottage Grove
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - General Fund
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021
2020
Budgeted Amounts
Variance with
Actual
Final Budget -
Original
Final
Amounts
Over (Under)
Actual
Expenditures
General government
Mayor and city council
$ 100,720
$ 91,660 $
91,498
$ (162)
$ 89,501
Administrative
720,485
698,180
673,638
(24,542)
688,696
Finance
629,840
651,565
653,973
2,408
649,834
Personnel
-
-
-
-
-
Assessing services
197,200
203,110
203,106
(4)
191,390
City clerk/elections
31,730
96,820
87,169
(9,651)
71,474
Legal
204,000
235,000
234,738
(262)
226,955
Community and employee programs
73,920
106,635
115,289
8,654
106,562
Government buildings
344,090
426,820
426,025
(795)
430,926
Total general government
2,301,985
2,509,790
2,485,436
(24,354)
2,455,338
Community development
Planning and zoning
462,300
517,245
584,359
67,114
456,853
Building inspections
1,041,615
1,286,820
1,343,100
56,280
923,259
Engineering
380,990
368,970
401,800
32,830
373,724
Total community development
1,884,905
2,173,035
2,329,259
156,224
1,753,836
Public safety
Police protection
7,802,980
8,231,895
8,169,857
(62,038)
6,210,052
Fire protection
1,223,755
1,532,985
1,501,433
(31,552)
1,524,417
Emergency preparedness
81,705
86,805
87,342
537
94,277
Animal control
27,800
24,275
23,886
(389)
28,615
Total public safety
9,136,240
9,875,960
9,782,518
(93,442)
7,857,361
Public works
Public works administration
390,765
430,865
416,134
(14,731)
462,952
Streets
1,557,485
1,570,680
1,591,038
20,358
1,486,484
Snow and ice control
742,520
630,630
636,512
5,882
683,844
Street signs/striping
236,060
227,550
200,335
(27,215)
214,510
Total public works
2,926,830
2,859,725
2,844,019
(15,706)
2,847,790
Culture and recreation
Forestry
372,700
348,800
377,672
28,872
304,121
Recreation programs
474,700
456,350
432,805
(23,545)
262,313
Parks maintenance
1,519,775
1,550,150
1,670,092
119,942
1,437,831
Total culture and recreation
2,367,175
2,355,300
2,480,569
125,269
2,004,265
Total expenditures
18,617,135
19,773,810
19,921,801
147,991
16,918,590
Excess of revenues over
(under) expenditures
(446,950)
548,880
1,045,324
496,444
2,595,444
Other Financing Sources (Uses)
Transfers in
582,000
633,000
616,890
(16,110)
563,050
Transfers out
(405,000)
(570,000)
(833,211)
(263,211)
(2,574,496)
Total other financing sources (uses)
177,000
63,000
(216,321)
(279,321)
(2,011,446)
Net change in fund balances
$ (269,950) $
611,880
829,003 $
217,123
583,998
Fund Balances
Beginning of year
12,275,376
11,691,378
End ofyear
$ 13,104,379
$ 12,275,376
:e
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 -employee payroll
Total OPEB liability as a percentage of covered payroll
December 31,
December 31,
December 31,
December 31,
2018
2019
2020
2021
$ 14,560
$ 16,325
$ 17,939
$ 25,083
11,794
15,807
10,179
13,939
-
(7,934)
(6,031)
227,397
(14,652)
41,447
13,860
33,310
(18,651)
(27,782)
(29,882)
(60,592)
(6,949)
37,863
6,065
239,137
337,526
330,577
368,440
374,505
$ 330,577
$ 368,440
$ 374,505
$ 613,642
$ 9,103,225
$ 10,569,669
$ 10,340,116
$ 11,729,994
3.63%
3.49%
3.62%
5.23%
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become available.
See notes to required supplementary information. 90
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
2021
0.1061%
$ 4,530,946
$ 138,442
$ 4,669,388
$ 7,640,187
59.3%
87.00%
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.
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
City's
Proportionate
Liablility and
Proportionate
Share
the State's
Share of the
Plan Fiduciary
City's
City's
(Amount) of
Proportionate
Net Pension
Net Position
Proportion of
Proportionate
the Net
Share of the
Liability
as a
the Net
Share of the
Pension
Net Pension
(Asset) as a
Percentage of
For Fiscal
Pension
Net Pension
Liability
Liablility
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
2021
0.5018%
$ 3,828,202
$ 174,149
$ 4,002,351
$ 6,059,377
63.18%
93.66%
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%
See notes to required supplementary information. 91
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Fiscal Year
Ending
December 31,
2021
2020
2019
2018
2017
2016
2015
Statutorily
Required
City of Cottage Grove
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contributions
in Relation to
the Statutorily
Required
595,200 $
539,417
508,963
482,521
458,971
424,202
403,964
595,200
539,417
508,963
482,521
458,971
424,202
403,964
Contributions
Contribution
as a Percentage
Deficiency City's Covered
of Covered
(Excess) Payroll
Payroll
$ - $ 7,936,000
7.50%
- 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
2021
$ 1,050,974
$ 1,050,974
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
$ - $ 5,937,706
17.70%
- 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%
See notes to required supplementary information. 93
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. 94
Measurement Date
December 31, December 31, December 31, December 31, December 31,
2017 2018 2019 2020 2021
$ 118,915 $ 102,569 $ 97,985 $ 108,515 $ 118,397
100,267 117,070 115,532 111,351 103,853
329,484 (12,862) (45,681) (160,794) 30,166
580,945
- (133,560) (322,109) (174,000) (213,833)
548,666 73,217 (154,273) (114,928) 619,528
1,366,724 1,915,390 1,988,607 1,988,607 1,873,679
$ 1,915,390 $ 1,988,607 $ 1,834,334 $ 1,873,679 $ 2,493,207
$ 2,081 $ - $ - $ - $ -
192,139 198,977 209,430 225,637 234,524
316,265 (113,085) 510,329 452,477 352,396
- (133,560) (322,109) (174,000) (213,833)
(12,334) (3,709) (2,155) (2,018) (2,126)
(2,319) - 79 - -
495,832 (51,377) 395,574 502,096 370,961
2,367,120 2,862,952 2,811,575 2,811,575 3,313,671
$ 2,862,952 $ 2,811,575 $ 3,207,149 $ 3,313,671 $ 3,684,632
$ (947,562) $ (822,968) $ (1,372,815) $ (1,439,992) $ (1,191,425)
149.5% 141.4% 174.8% 176.9% 147.8%
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
95
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.
a
December 31, December 31, December 31, December 31,
$ - $ -
$ 198,977 $ 209,430 $ 225,637 $ 234,524
n/a n/a n/a n/a
n/a n/a n/a n/a
97
City of Cottage Grove
Notes to Required Supplementary Information
General Employees Fund
2021 Changes
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
• The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
• The price inflation assumption was decreased from 2.5% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.0%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019,
experience study. The net effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of
90 and early retirements.
• Assumed rates of termination were 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.
M
City of Cottage Grove
Notes to Required Supplementary Information
General Employees Fund (Continued)
2019 Changes (Continued)
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.
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.
City of Cottage Grove
Notes to Required Supplementary Information
General Employees Fund (Continued)
2016 Changes
Changes in Actuarial Assumptions
• The assumed post -retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
• The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
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.
100
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.
101
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%.
102
City of Cottage Grove
Notes to Required Supplementary Information
Post Employment Health Care Plan
2021 Changes
Changes in Actuarial Assumptions
• The discount rate decreased from 2.12% in 2020 to 2.06% in 2021
• The general inflation rate was changed to the 2.25% rate used in the June 30, 2021 GERP and
June 30, 2021 PEPFF, material valuations (from 2.50%).
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
103
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COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
105
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NONMAJOR GOVERNMENTAL FUNDS
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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).
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City of Cottage Grove
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2021
With Comparative Totals for December 31, 2020
Totals
Nonmajor Governmental Funds
Special
Revenue
Debt Service
Capital Projects
2021
2020
Assets
Cash and investments
$ 1,902,922
$ 8,133,965
$ 20,383,146
$ 30,420,033 $
22,611,656
Cash with Fiscal Agent
-
-
-
-
-
Interfundreceivable
694,183
4,341
-
698,524
839,128
Interfund loan receivable
-
-
601,063
601,063
661,279
Due from other governments
295,629
-
181,152
476,781
198,919
Accounts receivable
373,292
-
914,536
1,287,828
381,714
Prepaid items
7,743
-
-
7,743
33,818
Inventories
84,153
-
-
84,153
28,265
Taxes receivable - delinquent
-
9,979
-
9,979
16,870
Special assessments receivable
Deferred
-
2,333,822
272,608
2,606,430
2,482,219
Delinquent
-
2,398
-
2,398
3,392
Special deferred
-
527,952
5,324
533,276
1,247,211
Property held for resale
-
-
448,900
448,900
324,733
Total assets
$ 3,357,922
$ 11,012,457
$ 22,806,729
$ 37,177,108 $
28,829,204
Liabilities
Liabilities
Accounts payable
$ 294,190
$ -
$ 2,347,943
$ 2,642,133 $
302,101
Salaries and benefits payable
48,765
-
-
48,765
34,258
Interfundpayable
694,183
4,341
152,204
850,728
839,128
Contracts payable
-
-
305,649
305,649
45,311
Due to other governments
7,758
-
-
7,758
1,710
Deposits payable
289,122
-
165,725
454,847
54,499
Deferred Revenue
-
1
-
1
-
Interfund loan payable
-
26,032
575,031
601,063
661,279
Interest Payable
-
-
-
-
-
Total liabilities
1,334,018
30,374
3,546,552
4,910,944
1,938,286
Deferred Inflows of Resources
Unavailable revenue - tax increment
Unavailable revenue - property taxes
Unavailable revenue -
special assessments
Total deferred inflows
of resources
Fund Balances
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred
inflows of resources, and
fund balances
- - - - 5,144
- 615,174 - 615,174 11,726
-
2,258,977
277,932
2,536,909
3,732,822
-
2,874,151
277,932
3,152,083
3,749,692
91,896
-
-
91,896
62,083
72,712
8,112,273
1,464,791
9,649,776
4,969,881
2,531,015
-
-
2,531,015
2,136,969
-
-
17,517,454
17,517,454
16,702,104
(671,719)
(4,341)
-
(676,060)
(729,811)
2,023,904
8,107,932
18,982,245
29,114,081
23,141,226
$ 3,357,922
$ 11,012,457
$ 22,806,729
$ 37,177,108
$ 28,829,204
III
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds
For the Year Ended December 31, 2021
With Compartive Totals for the Year Ended December 31, 2020
Totals
Nonmajor Governmental Funds
Special
Revenue
Debt Service
Capital Projects
2021
2020
Revenue
General property taxes
$
$ 2,573,231
$ -
$ 2,573,231 $
2,398,877
Franchise taxes
-
615,326
615,326
596,537
Aggregate taxes
-
23,467
23,467
22,699
Tax increment collections
182,563
1,244,670
1,427,233
1,321,659
Special assessments
1,129,616
62,919
1,192,535
1,512,209
Direct charges to developers
-
104,157
104,157
81,962
Intergovernmental
317,129
-
4,585,142
4,902,271
3,280,842
Charges for services
5,180,845
-
30,766
5,211,611
3,818,718
Rent
-
-
435,449
435,449
436,448
Fines and forfeitures
43,310
-
-
43,310
22,288
Investment earnings
(14,756)
(14,510)
(132,018)
(161,284)
300,755
Interest on interfund loan
-
19,395
19,395
21,895
Connection charges
-
3,376,744
3,376,744
1,577,096
Park dedication fees
-
-
1,986,872
1,986,872
1,110,209
Donations
29,000
-
162,500
191,500
361,818
Miscellaneous
125,916
162,379
20,120
308,415
438,761
Total revenues
5,681,444
4,033,279
12,535,509
22,250,232
17,302,773
Expenditures
Current
General government
15,701
2,164
17,865
2,635,665
Economic development
-
-
823,036
823,036
539,092
Public safety
668,069
-
-
668,069
495,442
Public works
811,324
-
1,142,736
1,954,060
1,756,642
Culture and recreation
3,095,911
-
311,070
3,406,981
2,546,799
Capital outlay
General government
-
-
172,732
172,732
305,358
Public safety
-
-
-
-
11,210
Public works
33,181
-
11,201,062
11,234,243
2,138,476
Culture and recreation
213,156
-
2,251,516
2,464,672
1,510,753
Debt service
Principal retirement
-
3,785,000
-
3,785,000
2,435,000
Interest and other charges
-
1,200,409
116,274
1,316,683
1,322,979
Total expenditures
4,821,641
5,001,110
16,020,590
25,843,341
15,697,416
Excess of revenues over
(under) expenditures
859,803
(967,831)
(3,485,081)
(3,593,109)
1,605,357
Other Financing Sources (Uses)
Proceeds from sale of capital asset
-
-
3,267
3,267
13,771
Bond issuance
3,840,000
3,955,000
7,795,000
-
Bond premium
113,843
121,905
235,748
-
Transfers in
1,024,225
1,101,899
2,126,124
2,795,009
Transfers out
(442,975)
-
(151,200)
(594,175)
(1,692,623)
Total other financing sources (uses)
(442,975)
4,978,068
5,030,871
9,565,964
1,116,157
Net change in fund balances
416,828
4,010,237
1,545,790
5,972,855
2,721,514
Fund Balances
Beginning of year
1,607,076
4,097,695
17,436,455
23,141,226
20,419,712
End of year
$ 2,023,904
$ 8,107,932
$ 18,982,245
$ 29,114,081
$ 23,141,226
112
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.
113
City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Special Revenue Funds
December 31, 2021
With Comparative Totals For December 31, 2020
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)
$ 21,460 $ 1,455,641 $ 77,751 $ -
- 694,183 - -
55,734 204,395 27,690
- 205,145 155,639
- - - 2,940
$ 77,194 $ 2,559,364 $ 77,751 $ 186,269
$ 3,200 $ 202,478 $ 5,039 $ 48,754
770 8,147 - 16,809
- - - 694,183
987 - 3,815
- - - 2,940
- - 72,712 -
73,224 2,347,752 - -
- - - (580,232)
73,224 2,347,752 72,712 (577,292)
$ 77,194 $ 2,559,364 $ 77,751 $ 186,269
114
HERO Center
Golf Course Operations
Fund(255) (290)
Totals
Nonmajor Special Revenue Funds
2021 2020
$ 122,384
$
225,686
$
1,902,922
$
1,292,597
-
-
694,183
782,204
-
7,810
295,629
185,955
12,508
-
373,292
221,662
4,803
-
7,743
23,818
21,295
62,858
84,153
28,265
$ 160,990
$
296,354
$
3,357,922
$
2,534,501
$ 8,052
$
26,667
$
294,190
$
94,754
15,259
7,780
48,765
34,258
-
-
694,183
782,204
1,542
1,414
7,758
1,710
-
289,122
289,122
14,499
24,853
324,983
1,334,018
927,425
26,098
62,858
91,896
52,083
-
-
72,712
90,911
110,039
-
2,531,015
2,136,969
-
(91,487)
(671,719)
(672,887)
136,137
(28,629)
2,023,904
1,607,076
$ 160,990
$
296,354
$
3,357,922
$
2,534,501
115
City of Cottage Grove
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
Nonmajor Special Revenue Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
Revenues
Intergovernmental
Charges for services
Fines and forfeitures
Investment earnings
Donations
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)
$ 55,734
$ 204,395
$ -
$ 57,000
-
1,020,513
-
1,106,757
-
-
43,310
-
(223)
(12,076)
(450)
-
-
95,000
-
24,582
55,511
1,307,832
42,860
1,188,339
- - 59,559 -
56,131 755,193 - -
- - - 908,150
33,181 - -
- 43,373
56,131 788,374 59,559 951,523
(620) 519,458 (16,699) 236,816
- (221,475) - (220,000)
- (221,475) - (220,000)
(620) 297,983 (16,699) 16,816
73,844 2,049,769 89,411 (594,108)
$ 73,224 $ 2,347,752 $ 72,712 $ (577,292)
116
Totals
HERO Center COVID 19
Golf Course
Operations Pandemic
Fund (255)
(290) Relief (220)
2021
2020
$ -
$ - $ -
$ 317,129
$ 3,280,842
2,443,392
610,183 -
5,180,845
3,724,604
-
- -
43,310
22,288
(1,310)
(697) -
(14,756)
28,028
-
29,000 -
29,000
-
5,138
1,196 -
125,916
16,129
2,447,220
639,682 -
5,681,444
7,071,891
608,510
2,187,761
169,783 -
2,357,544 608,510
2,607,698
668,069 495,442
811,324 828,480
3,095,911 2,309,321
219,089
- - 11,210
33,181 -
- 213,156 200,062
4,821,641 6,671,302
89,676 31,172 - 859,803 400,589
89,676
- 126,389
- (1,500) (442,975) (288,300)
- (1,500) (442,975) (161,911)
31,172 (1,500) 416,828 238,678
46,461 (59,801) 1,500 1,607,076 1,368,398
$ 136,137 $ (28,629) $ - $ 2,023,904 $ 1,607,076
117
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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
119
City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Debt Service Funds
December 31, 2021
With Comparative Totals for December 31, 2020
Assets
Cash and investments
Interfund receivable
Taxes receivable - delinquent
Special assessments receivable
Deferred
Delinquent
Special deferred
Total assets
Liabilities
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)
$ 245,171
$
-
$ 1,628,840
$ 509,148
-
-
4,341
-
725
851
-
3,088
-
-
15,318
-
-
-
632
-
-
-
512,029
-
$ 245,896
$
851
$ 2,161,160
$ 512,236
-
4,341
-
-
-
4,341
-
-
725
851
-
3,088
-
-
527,979
-
725
851
527,979
3,088
245,171
-
1,633,181
509,148
-
(4,341)
-
-
245,171
(4,341)
1,633,181
509,148
$ 245,896
$
851
$ 2,161,160
$ 512,236
120
Totals
Nonmajor Debt Service Funds
Pavement
2021B GO
Management
2016A G.O.
2021A GO
Improvement
Debt Service
Refunding
Improvement
Refunding
(490, 491, 492,
Tax Increment
Bonds (369)
Bond (330)
Bond (340)
493)
Funds
2021
2020
$ 33,707
$ 442,286
$ 2,073
$ 5,049,375
$
223,365
$
8,133,965
$
4,128,227
-
-
-
-
-
4,341
23,354
1,544
58
-
3,713
-
9,979
11,726
-
605,195
-
1,713,309
-
2,333,822
2,157,437
-
-
-
1,766
-
2,398
3,392
-
-
-
15,923
-
527,952
1,242,042
$ 35,251
$ 1,047,539
$ 2,073
$ 6,784,086
$
223,365
$
11,012,457
$
7,566,178
$ -
$ -
$
-
$
-
$
500
-
-
-
-
-
4,341
23,354
-
-
-
26,032
26,032
30,032
-
-
-
1
26,032
30,374
53,886
1,544
605,253
-
3,713
-
615,174
11,726
-
-
-
1,730,998
-
2,258,977
3,402,871
1,544
605,253
-
1,734,711
-
2,874,151
3,414,597
33,707
442,286
2,073
5,049,374
197,333
8,112,273
4,121,049
-
-
-
-
-
(4,341)
(23,354)
33,707
442,286
2,073
5,049,374
197,333
8,107,932
4,097,695
$ 35,251
$ 1,047,539
$ 2,073
S 6,784,086
$
223,365
$
11,012,457
$
7,566,178
121
City of Cottage Grove
Subcombining Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Debt Service Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
2019B
2017A G.O.
2019A G.O.
Equipment
2018A G.O.
Capital
CIP Bonds
Certificate
Improvement
Improvement
(315)
(305)
Bonds (310)
Bonds (371)
Revenues
General property taxes
$ 296,485
$ 348,893
$ 279,499
$ 619,361
Tax increment collections
-
-
-
-
Special assessments
-
-
496,315
-
Investment earnings
(509)
-
(6,785)
(1,106)
Miscellaneous
-
-
162,379
-
Total revenues
295,976
348,893
931,408
618,255
Expenditures
Current
General government
855
855
909
855
Debt service
Principal retirement
145,000
255,000
410,000
365,000
Interest and other charges
135,484
74,025
222,450
239,300
Total expenditures
281,339
329,880
633,359
605,155
Excess of revenues over
(under) expenditures
14,637
19,013
298,049
13,100
Other Financing Sources
Bond issuance - - - -
Bond Premium - - - -
Transfers in - - 168,982 -
Total other financing sources - - 168,982 -
Net change in fund balances 14,637 19,013 467,031 13,100
Fund Balances
Beginning of year 230,534 (23,354) 1,166,150 496,048
End of year $ 245,171 $ (4,341) $ 1,633,181 $ 509,148
122
Totals
Nonmajor Debt Service Funds
Pavement
2021B GO
Management
2016A G.O.
2021A GO
Improvement
Debt Service
Refunding
Improvement
Refunding
(490, 491, 492,
Tax Increment
Bonds (369)
Bond (330)
Bond (340)
493)
Funds
2021
2020
$ 199,946
$ 179,582
$ -
$ 649,465
$ -
$ 2,573,231
$ 2,398,877
-
-
-
-
182,563
182,563
673,740
-
263,754
-
369,547
-
1,129,616
1,312,593
6
(1,050)
-
(4,026)
(1,040)
(14,510)
24,986
-
-
-
-
-
162,379
-
199,952
442,286
-
1,014,986
181,523
4,033,279
4,410,196
-
-
-
10,771
1,456
15,701
17,173
340,000
-
-
2,005,000
265,000
3,785,000
2,435,000
70,855
-
-
415,854
42,441
1,200,409
1,301,084
410,855
-
-
2,431,625
308,897
5,001,110
3,753,257
(210,903)
442,286
-
(1,416,639)
(127,374)
(967,831)
656,939
-
-
2,073
3,837,927
-
3,840,000
-
-
-
113,843
-
113,843
-
220,000
-
635,243
-
1,024,225
247,000
220,000
-
2,073
4,587,013
-
4,978,068
247,000
9,097
442,286
2,073
3,170,374
(127,374)
4,010,237
903,939
24,610
-
-
1,879,000
324,707
4,097,695
3,193,756
$ 33,707
$ 442,286
$ 2,073
$ 5,049,374
$ 197,333
$ 8,107,932
$ 4,097,695
123
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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.
3M Settlement — MPCA — to account for funds and expenditure related to this agreement.
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
projects.
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.
125
City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Capital Projects Funds
December 31, 2021
With Comparative Totals for December 31, 2020
Assets
Cash and investments
Interfund receivable
Interfund loan receivable
Due from other governments
Due from other funds
Accounts receivable
Prepaid items
Taxes receivable - delinquent
Special assessments receivable
Deferred
Special deferred
Property held for resale
Total assets
Liabilities
and Fund Balances
Liabilities
Accounts payable
Interfund payable
Contracts payable
Due to other funds
Deposits payable
Interfund loan payable
Total liabilities
Deferred Inflows of Resources
Unavailable revenue - tax increment
Unavailable revenue - special assessments
Total deferred inflows of resources
Fund Balances
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows
of resources, and fund balances
Equipment Street
Replacement Sealcoating Future Economic
(210) (235) Development (286)
$ 1,343,542 $ 863,207 $ 3,631,747
- - 601,063
- 14,180 -
- 156,334 3,202
- - 448,900
$ 1,343,542 $ 1,033,721 $ 4,684,912
$ - $ 10,327 $ -
27,000 -
37,327 -
1,343,542 996,394 4,684,912
1,343,542 996,394 4,684,912
$ 1,343,542 $ 1,033,721 $ 4,684,912
126
Future Storm
Pavement
Completed
Park Capital
Sewer
Sewer
Management
Construction
Park Trust
Improvement
3M Settlement -
Improvements
Connection and
Capital Project
(500)
(570)
Fund (515)
MPCA (455)
(585)
Area (580)
(560)
$ 257,779
$ 1,682,174
$ 1,470,589
$ -
$ 4,789,528
$ 1,140,114
$ 3,152,292
-
-
-
166,252
-
720
-
-
5,000
-
-
750,000
-
-
-
-
-
-
-
272,608
-
-
-
-
-
-
5,324
$ 257,779
$ 1,682,174
$ 1,475,589
$ 166,252
$ 4,789,528
$ 1,890,834
$ 3,430,224
$ 60,271
$ 87,913
$ 41,423 $
25,233
$ 68,049
$ 1,718,098 $
324,277
-
-
-
152,204
-
-
-
-
89,078
-
-
-
136,647
79,924
-
-
138,725
-
-
-
-
60,271
176,991
180,148
177,437
68,049
1,854,745
404,201
-
-
-
-
-
-
277,932
-
-
-
-
-
-
277,932
197,508
1,505,183
1,295,441
(11,185)
4,721,479
36,089
2,748,091
197,508
1,505,183
1,295,441
(11,185)
4,721,479
36,089
2,748,091
$ 257,779
$ 1,682,174
$ 1,475,589 $
166,252
$ 4,789,528
$ 1,890,834 $
3,430,224
127
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City of Cottage Grove
Subcombining Balance Sheet -
Nonmajor Capital Projects Funds
December 31, 2021
With Comparative Totals for December 31, 2020
Totals
Nonmajor Capital Projects Funds
Tax Increment
Construction
Revolving Fund
2021
2020
Assets
Cash and investments
$ 2,052,174
$
20,383,146
$
17,190,832
Interfund receivable
-
-
33,570
Interfund loan receivable
-
601,063
661,279
Due from other governments
-
181,152
12,964
Due from other funds
-
-
Accounts receivable
-
914,536
160,052
Prepaid items
-
-
10,000
Taxes receivable - delinquent
-
-
5,144
Special assessments receivable
-
Deferred
-
272,608
324,782
Special deferred
-
5,324
5,169
Property held for resale
-
448,900
324,733
Total assets
$ 2,052,174
$
22,806,729
$
18,728,525
Liabilities
and Fund Balances
Liabilities
Accounts payable
$ 12,352
$
2,347,943
$
206,847
Interfund payable
-
152,204
33,570
Contracts payable
-
305,649
45,311
Due to other funds
-
-
-
Deposits payable
-
165,725
40,000
Interfund loan payable
575,031
575,031
631,247
Total liabilities
587,383
3,546,552
956,975
Deferred Inflows of Resources
Unavailable revenue - tax increment
-
-
5,144
Unavailable revenue - special assessments
-
277,932
329,951
Total deferred inflows of resources
-
277,932
335,095
Fund Balances
Nonspendable
-
-
10,000
Restricted
1,464,791
1,464,791
757,921
Assigned
-
17,517,454
16,702,104
Unassigned
-
-
(33,570)
Total fund balances
1,464,791
18,982,245
17,436,455
Total liabilities, deferred inflows
of resources, and fund balances
$ 2,052,174
$
22,806,729
$
18,728,525
129
City of Cottage Grove
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
Nonmajor Capital Projects Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
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
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
Equipment
Street
Future Economic Completed
Replacement
Sealcoating
Development Construction
(210)
(235)
(286) (500)
$ -
$ 615,326
$ - $ -
-
23,467
- -
-
104,157
- -
-
30,766
- -
(8,453)
(5,207)
(21,548) (611)
-
19,395 -
150,000 -
1,792 - 372
- - 311,229 -
287,775 - 20,059
- - - 172,732
614,105 551,756 - -
(624,350) (71,022) (163,172) (193,774)
3,267 - - -
647,415 - - -
- - (51,200) -
650,682 - (51,200) -
26,332 (71,022) (214,372) (193,774)
1,317,210 1,067,416 4,899,284 391,282
$ 1,343,542 $ 996,394 $ 4,684,912 $ 197,508
130
Future Storm
Pavement
Park Capital
Sewer
Sewer
Management
Tax Increment
Park Trust
Improvement
3M Settlement -
Improvements
Connection and
Capital Project
Construction
(570)
Fund (515)
MPCA (455)
(585)
Area (580)
(560)
Revolving Fund
-
-
-
-
-
-
1,244,670
-
-
-
-
-
62,919
-
-
-
2,631,697
-
1,953,445
-
-
-
435,449
-
-
-
-
-
(13,628)
(10,462)
-
(28,776)
(17,149)
(18,685)
(7,499)
-
-
-
1,878,690
1,498,054
-
-
1,986,872
-
-
-
-
-
-
-
12,500
-
-
-
-
19,910
-
-
-
-
-
-
1,993,154
437,487
2,631,697
1,849,914
3,434,350
44,234
1,237,171
- - - - - 511,807
- - - 215,832 617,298 1,772 -
122,027 189,043 - - - - -
- - 2,642,882 531,212 3,428,342 3,432,765 -
1,884,073 367,443 - - - - -
- - - - - 97,780 18,494
2,006,100 556,486 2,642,882 747,044 4,045,640 3,532,317 530,301
(12,946) (118,999)
- (100,000)
(100,000)
(12,946) (218,999)
(11,185) 1,102,870 (611,290) (3,488,083) 706,870
3,955,000 -
121,905 -
- - - 420,914 -
- - 4,497,819 -
(11,185) 1,102,870 (611,290) 1,009,736 706,870
1,518,129 1,514,440 - 3,618,609 647,379 1,738,355 757,921
$ 1,505,183 $ 1,295,441 $ (11,185) $ 4,721,479 $ 36,089 $ 2,748,091 $ 1,464,791
131
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City of Cottage Grove
Subcombining Statement of Revenues,
Expenditures, and Changes in Fund Balances -
Nonmajor Capital Projects Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
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
General government
Public works
Culture and recreation
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
Totals
Nonmajor Capital Projects Funds
Ice Arena
Construction
(526) 2021
2020
$ - $ 615,326 $
596,537
- 23,467
22,699
- 1,244,670
647,919
- 62,919
199,616
- 104,157
81,962
- 4,585,142
-
- 30,766
94,114
- 435,449
436,448
- (132,018)
247,741
- 19,395
21,895
- 3,376,744
1,577,096
- 1,986,872
1,110,209
- 162,500
361,818
- 20,120
422,632
- 12,535,509
5,820,686
- 2,164
10,794
- 823,036
539,092
- 1,142,736
928,162
- 311,070
237,478
- 172,732
86,269
- 11,201,062
2,138,476
- 2,251,516
1,310,691
- 116,274
21,895
- 16,020,590
5,272,857
- (3,485,081) 547,829
-
3,267
13,771
3,955,000
-
-
121,905
-
33,570
1,101,899
2,421,620
-
(151,200)
(1,404,323)
33,570
5,030,871
1,031,068
33,570
1,545,790
1,578,897
(33,570)
17,436,455
15,857,558
$ - $
18,982,245 $
17,436,455
133
Revenues
Intergovernmental
Investment earnings
Total revenues
Expenditures
Current
Public works
Excess of revenues over
(under) expenditures
Fund Balances
Beginning of year
End of year
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021 2020
Budgeted Amounts
Variance with
Actual
Final Budget -
Original Final
Amounts
Over (Under)
Actual
$ 55,000 $ 55,000
$ 55,734
$ 734
$ 55,066
2,500 2,500
(223)
(2,723)
1,153
57,500 57,500
55,511
(1,989)
56,219
58,440 58,440 56,131 (2,309) 54,545
$ (940) $ (940) (620) $ 320
73,844
$ 73,224
1,674
72,170
$ 73,844
134
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021
Budgeted Amounts
Variance with
Actual
Final Budget -
Original Final
Amounts
Over (Under)
Revenues
Charges for services
$ 951,000 $ 951,000 $
1,020,513
$ 69,513
Investment earnings
10,000 10,000
(12,076)
(22,076)
Intergovernmental
- -
204,395
204,395
Miscellaneous
- -
95,000
95,000
Total revenues
961,000 961,000
1,307,832
346,832
Expenditures
Current
Public works
Capital outlay
Public works
Total expenditures
Excess of revenues over
expenditures
Other Financing Uses
Transfers out
Net change in fund balance
Fund Balances
Beginning of year
End of year
2020
Actual
$ 949,712
24,815
226,057
1,200,584
541,950 541,950 755,193 213,243 773,935
37,000 37,000 33,181 (3,819) -
578,950 578,950 788,374 209,424 773,935
382,050 382,050 519,458 137,408 426,649
(42,540) (42,540) (221,475) (178,935) (41,300)
$ 339,510 $ 339,510 297,983 $ (41,527) 385,349
2,049,769
$ 2,347,752
1,664,420
$ 2,049,769
135
Revenues
Fines and forfeitures
Investment income
Total revenues
Expenditures
Current
Public safety
Capital outlay
Public safety
Total expenditures
Excess of revenues over
expenditures
Fund Balance
Beginning of year
End of year
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021 2020
Budgeted Amounts
Variance with
Actual
Final Budget -
Original Final
Amounts
Over (Under)
Actual
$ 30,000 $ 30,000
$ 43,310
$ 13,310
$ 22,288
1,000 1,000
(450)
(1,450)
1,208
31,000 31,000
42,860
11,860
23,496
19,300 19,300 59,559 40,259 9,191
10,200 10,200 - (10,200) -
29,500 29,500 59,559 30,059 9,191
$ 1,500 $ 1,500 (16,699) $ (18,199) 14,305
$ 72,712 $ 89,411
136
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021
2020
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
1,062,500
1,062,500
1,106,757
44,257
664,531
Investment earnings
6,000
6,000
-
(6,000)
-
Contributions and donations
-
-
-
-
-
Miscellaneous
-
-
24,582
24,582
9,598
Total revenues
1,125,500
1,125,500
1,188,339
62,839
731,129
Expenditures
Current
Culture and recreation
Capital outlay
Culture and recreation
Total expenditures
Excess of revenues over
(under) expenditures
Other Financing Uses
Transfers out
Net change in fund balances
Fund Balance
Beginning of year
End of year
863,140 863,140 908,150 45,010 653,735
- - 43,373 43,373 56,195
863,140 863,140 951,523 88,383 709,930
262,360 262,360 236,816 (25,544) 21,199
(220,000) (220,000) (220,000) - (247,000)
$ 42,360 $ 42,360 16,816 $ (25,544) (225,801)
(594,108) (368,307)
$ (577,292) $ (594,108)
137
Revenues
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021 2020
Budgeted Amounts
Variance with
Actual
Final Budget -
Original Final
Amounts
Over (Under)
Actual
$ 1,983,300 $ 1,983,300
$ 2,443,392
$ 460,092
$ 1,858,701
- -
(1,310)
(1,310)
134
-
5,138
5,138
4,780
1,983,300 1,983,300
2,447,220
463,920
1,863,615
1,837,740
1,837,740
2,187,761
350,021
1,655,586
180,000
180,000
169,783
(10,217)
143,867
2,017,740
339,804
2,357,544
2,017,740
1,799,453
$ (34,440)
$ (34,440)
89,676 $
124,116
64,162
46,461
$ 136,137
(17,701)
$ 46,461
138
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
2021
2020
Budgeted Amounts
Variance with
Actual
Final Budget -
Original
Final
Amounts
Over (Under)
Actual
Revenues
Intergovernmental
$ 2,000 $
2,000 $
-
$ (2,000)
$ 116,650
Charges for services
595,590
595,590
610,183
14,593
251,660
Investment earnings
-
-
(697)
(697)
-
-
-
29,000
29,000
-
Miscellaneous
875
875
1,196
321
251
Total revenues
598,465
598,465
639,682
41,217
368,561
Expenditures
Current
Public safety
659,485
659,485
608,510
(50,975)
486,251
Capital outlay
Public safety
-
-
-
-
11,210
Total expenditures
659,485
659,485
608,510
(50,975)
497,461
Excess of revenues over
(under) expenditures
(61,020)
(61,020)
31,172
92,192
(128,900)
Other Financing Sources
Transfers in
-
-
-
-
126,389
Net change in fund balances
$ (61,020) $
(61,020)
31,172
$ 92,192
(2,511)
Fund Balances
Beginning of year
(59,801)
(57,290)
End of year
$
(28,629)
$ (59,801)
139
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
Revenues
Intergovernmental
Investment earnings
Miscellaneous
Total revenues
Expenditures
Current
General government
Capital outlay
General government
Total expenditures
Excess of revenues
under expenditures
Other Financing Sources (Uses)
Transfers out
Net change in fund balance
Fund Balances
Beginning of year
End of year
2021 2020
Budgeted Amounts Variance with
Actual Final Budget -
Original Final Amounts Over (Under) Actual
$ - $ - $ - $ - $ 2,826,069
- - - - 718
- - - - 2,828,287
- 2,607,698
- 219,089
- - - 2,826,787
- - - - 1,500
- - (1,500) (1,500)
(1,500) $ (1,500)
1,500
1,500
$ 1,500
140
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.
141
Assets
Current assets
Cash and investments
(Including cash equivalents)
Accounts receivable
Interfund receivable
Inventories
Prepaid items
Total current assets
Noncurrent assets
Capital assets
Land
Buildings and improvements
Equipment and furniture
Machinery and equipment
Total capital assets
Accumulated depreciation
Total noncurrent assets
Total assets
Deferred Outflows of Resources
Deferred outflows of resources related to pensions
Deferred outflows of resources related to OPEB
Total deferred outflows of resources
Total assets and deferred outflows of resources
Liabilities
Current liabilities
Accounts payable
Salaries payable
Interfund payable
Due to other governments
Compensated absences payable
Total current liabilities
Noncurrent liabilities
Compensated absences payable
Net pension liability
Total OPEB liability
Total noncurrent liabilities
Total liabilities
Deferred Inflows of Resources
Deferred inflows of resources related to pensions
Deferred inflows of resources related to OPEB
Total deferred inflows of resources
Net Position
Net investment in capital assets
Unrestricted
Total net position
Total liabilities, deferred inflows of
resources, and net position
City of Cottage Grove
Combining Statement of Net Position -
Internal Service Funds
December 31, 2021
With Comparative Totals for December 31, 2020
Totals
Fleet
Self Insurance
Maintenance
Information
(700)
(710)
Services(720)
2021
2020
$ 719,924
$ -
$ -
$ 719,924
$ 1,317,222
95,192
52
1,113
96,357
12,914
631,585
-
-
631,585
358,682
-
146,581
-
146,581
121,143
68,733
269
204,101
273,103
422,113
1,515,434
146,902
205,214
1,867,550
2,232,074
-
424,665
-
424,665
424,665
928,870
-
928,870
928,870
-
70,127
70,127
137,566
504,229
-
504,229
512,274
1,857,764
70,127
1,927,891
2,003,375
(951,285)
(61,092)
(1,012,377)
(1,018,122)
906,479
9,035
915,514
985,253
1,515,434
1,053,381
214,249
2,783,064
3,217,327
269,773
117,550
387,323
65,154
12,381
5,397
17,778
2,768
-
282,154
122,947
405,101
67,922
$ 1,515,434
$ 1,335,535
$ 337,196
$ 3,188,165
$ 3,285,249
$ 254,133
$ 39,060
$ 20,261
$ 313,454
$ 419,307
551
28,577
11,470
40,598
31,533
-
274,440
357,145
631,585
358,682
57,427
2,172
-
59,599
7,764
-
43,015
22,980
65,995
45,841
312,111
387,264
411,856
1,111,231
863,127
-
14,678
4,329
19,007
27,662
337,248
146,951
484,199
545,672
27,991
12,201
40,192
22,011
-
379,917
163,481
543,398
595,345
312,111
767,181
575,337
1,654,629
1,458,472
312,279
136,071
448,350
24,749
824
359
1,183
1,377
313,103
136,430
449,533
26,126
-
906,479
9,035
915,514
985,253
1,203,323
(651,228)
(383,606)
168,489
815,398
1,203,323
255,251
(374,571)
1,084,003
1,800,651
$ 1,515,434 $ 1,335,535 $ 337,196 $ 3,188,165 $ 3,285,249
142
City of Cottage Grove
Combining Statement of Revenues, Expenses, and
Changes in Net Position - Internal Service Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
Fleet
Self Insurance Maintenance Information
(700) (710) Services (720)
Totals
2021 2020
Operating Revenues
Charges for services
User fees $ - $ 1,354,081 $ 1,079,609 $ 2,433,690 $ 2,219,605
Employee benefits 2,195,554 - - 2,195,554 2,185,390
Insurance refunds and reimbursements 124,260 - - 124,260 46,595
Total operating revenues 2,319,814 1,354,081 1,079,609 4,753,504 4,451,590
Operating Expenses
Operating and maintenance
Personal services
-
823,642
309,122
1,132,764
1,065,812
Contractual services
-
218,554
623,641
842,195
719,104
Commodities
-
603,241
98,140
701,381
637,487
Administrative and general
Personal insurance benefits
2,248,768
-
-
2,248,768
1,865,292
Contractual services
329,083
-
-
329,083
380,101
Claims
145,677
-
-
145,677
369,067
Depreciation
-
45,971
7,289
53,260
74,032
Total operating expenses
2,723,528
1,691,408
1,038,192
5,453,128
5,110,895
Operating loss
(403,714)
(337,327)
41,417
(699,624)
(659,305)
Nonoperating Revenues
Investment income
(9,249)
-
-
(9,249)
33,577
Loss on sale of asset
-
-
(16,479)
(16,479)
(21,820)
Miscellaneous
7,173
1,531
-
8,704
13,066
Total nonoperating revenues
(2,076)
1,531
(16,479)
(17,024)
24,823
Income before capital
Income before capital contributions
(405,790)
(335,796)
24,938
(716,648)
(634,482)
Capital contributions
-
-
-
-
42,986
Change in net position
(405,790)
(335,796)
24,938
(716,648)
(591,496)
Net Position
Beginning of year
1,609,113
591,047
(399,509)
1,800,651
2,392,147
End of year
$ 1,203,323
$ 255,251 $
(374,571)
$ 1,084,003
$ 1,800,651
143
City of Cottage Grove
Combining Statement of Cash Flows -
Internal Service Funds
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
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
Net cash flows - capital and related
financing activities
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)
2021
2020
$ 2,112,633
$ 1,354,672
$ 1,078,496
$ 4,545,801
$ 4,398,255
124,260
-
-
124,260
46,595
(309,575)
(823,786)
(814,523)
(1,947,884)
(2,217,467)
(2,249,637)
(749,812)
(319,481)
(3,318,930)
(2,832,889)
7,173
1,530
8,703
13,065
(315,146)
(217,396)
(55,508)
(588,050)
(592,441)
(272,903)
217,396
55,508
1
(13,635)
(13,635)
(9,249) (9,249) 33,577
(597,298) (597,298) (572,499)
1,317,222 1,317,222 1,889,721
$ 719,924 $ $ $ 119,924 $ 1,317,222
$ (403,714) $ (337,327) $ 41,417 $ (699,624) $ (659,305)
-
45,971
7,289
53,260
74,032
7,173
1,530
(1,113)
7,590
13,065
-
54,049
(13,228)
40,821
93,400
(82,921)
591
(82,330)
(6,740)
220,366
(9)
(71,347)
149,010
(131,628)
-
(25,438)
(25,438)
(25,544)
(2,896)
22,505
(21,387)
(1,778)
(85,077)
(103,177)
-
-
(103,177)
124,038
50,892
951
(8)
51,835
6,503
29
8,317
719
9,065
(12,703)
(898)
-
-
(898)
(5,599)
-
9,622
1,877
11,499
17,657
-
1,842
273
2,115
5,460
88,568
119,931
(96,925)
111,574
66,864
$ (315,146)
$ (217,396)
$ (55,508)
$ (588,050)
$ (592,441)
$ $ $ $ $ 42,986
144
City of Cottage Grove
ECONOMIC DEVELOPMENT AUTHORITY COMPONENT UNIT
Established to account for the receipt and use of monies for economic development purposes.
145
City of Cottage Grove
Combining Balance Sheet - All Governmental Fund Types -
Economic Development Authority Component Unit
December 31, 2021
With Comparative Totals for December 31, 2020
Assets
Accounts receivable
Prepaid items
Taxes receivable - delinquent
Loan receivable
Property held for resale
Total assets
Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities
Accounts payable
Salaries and benefits payable
Due to other governments
Deposits Payable
Total liabilities
Deferred inflows of resources
Unavailable revenue - property taxes
Total deferred inflows of resources
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) 2021 2020
$ 8,282 $
8,282 $
12,685
480
480
1,275
832
832
956
44,175
44,175
73,299
129,300
129,300
311,718
$ 183,069 $
183,069 $
399,933
31,354
31,354
14,918
3,991
3,991
5,376
435,978
435,978
366,017
74,625
74,625
-
545,948
545,948
386,311
832
832
956
832
832
956
480
480
1,275
(364,191)
(364,191)
11,391
(363,711)
(363,711)
12,666
$ 183,069
$ 183,069 $
399,933
$ (363,711)
832
(71,116)
61,436
(2,790)
186
(93,329)
$ (468,492)
146
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, 2021
With Compartive Totals for the Year Ended December 31, 2020
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
Total expenditures
Net change in fund balances
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, 2020
At December 31, 2021
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, 2020
At December 31, 2021
Change in net position of component unit
Totals
Economic
Development
Authority (285) 2021 2020
$ 124,930 $
124,930 $
125,305
34,940
34,940
14,978
75,000
75,000
75,000
(2,471)
(2,471)
8,448
600
600
805
57,987
57,987
29,758
290,986
290,986
254,294
167,275
167,275
214,188
1,748
1,748
253
498,340
498,340
256,555
667,363
667,363
470,996
(376,377)
(376,377)
(216,702)
12,666
12,666
229,368
$ (363,711)
$ (363,711) $
12,666
$ (376,377)
(956)
832
36,456
(4,318)
10,145
(10,219)
$ (344,437)
147
%re Pride 006
Cottage
Grove
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SUPPLEMENTARY FINANCIAL INFORMATION
149
City of Cottage Grove
Combined Schedule of Bonded Indebtedness
December 31, 2021
Interest Rate
Dated
Final Payment
Primary Government
General Obligation Bonds
$1,405,000 Tax Increment Bonds of 2004A
3.00%-4.65%
7/l/2004
2/l/2024
$4,660,000 G.O. Refunding Bonds of 2016A
2.00%-3.00%
1/28/2016
2/l/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/l/2040
Total General Obligation Bonds
Equipment Certificate
$2,845,000 Equipment Certificate of 2019B
3.00%
2/14/2019
2/l/2029
Special Assessment Debt
Improvement Bonds of 2013A
3.00%-3.50%
9/26/2013
2/l/2029
Improvement Bonds of 2015A
2.50%-3.00%
5/27/2015
2/1/2031
Improvement Bonds of 2016B
2.00%-2.10%
11/16/2016
2/l/2033
Improvement Bonds of 2018A
3.00%
6/26/2018
2/l/2035
Improvement Bonds of 2021A
1.20%-2.00%
6/10/2021
2/l/2037
Improvement Refunding Bond of 2021B
1.05%-2.00%
12/9/2021
2/l/2029
Total Special Assessment Debt with
Governmental Commitment
Total Bonded Indebtedness - Primary Government
Total Bonded Indebtedness - Reporting Entity
150
Authorized
Principal due
Interest due
and Issued
Retired
Outstanding
in 2022
in 2022
$ 1,405,000
$ 585,000
$ 820,000
$ 255,000
$ 31,872
4,660,000
2,450,000
2,210,000
350,000
49,650
9,155,000
1,065,000
8,090,000
375,000
228,200
4,090,000
145,000
3,945,000
150,000
129,584
19,310,000
4,245,000
15,065,000
1,130,000
439,306
2,845,000
505,000
2,340,000
265,000
66,225
7,345,000
2,980,000
4,365,000
4,365,000
49,308
5,700,000
1,760,000
3,940,000
370,000
104,585
4,275,000
975,000
3,300,000
275,000
63,670
7,620,000
410,000
7,210,000
420,000
210,000
3,955,000
-
3,955,000
-
78,002
3,840,000
-
3,840,000
-
42,640
32,735,000
6,125,000
26,610,000
5,430,000
548,205
54,890,000
10,875,000
44,015,000
6,825,000
1,053,736
$ 54,890,000
$ 10,875,000
$ 44,015,000
$ 6,825,000
$ 1,053,736
151
Bonds payable
Future interest payable
Totals
Payments to maturity
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
City of Cottage Grove
Debt Service Payments to Maturity
December 31, 2021
Primary Government
General Obligation Bonds
$1,405,000 Tax
$4,660,000
$9,155,000
$4,090,000
$2,845,000
$7,345,000
$5,700,000
$4,275,000
Increment
G.O.
Refunding
G.O. CIP
G.O. CIP
Equipment
Improvement
Improvement
Improvement
Bonds of
Bonds of
Bonds of
Bonds of
Certificate of
Bonds of
Bonds of
Bonds of
2004A
2016A
2017A
2019A
2019B
2013A
2015A
2016B
$
820,000
$
2,210,000
$
8,090,000
$
3,945,000
$ 2,340,000
$ 4,365,000
$ 3,940,000
$ 3,300,000
58,425
151,400
2,169,001
1,340,756
291,750
49,308
547,740
386,530
$
878,425
$
2,361,400
$
10,259,001
$
5,285,756
$ 2,631,750
$ 4,414,308
$ 4,487,740
$ 3,686,530
$
286,872
$
399,650
$
603,200
$
279,584
$ 331,225
$ 4,414,308
$ 474,585
$ 338,670
294,810
394,075
606,725
278,484
328,200
-
473,335
343,070
296,743
393,275
604,875
277,184
329,950
-
461,935
337,370
-
394,050
602,725
280,584
326,475
-
460,385
331,670
-
391,500
605,200
278,684
327,775
-
459,535
325,970
-
388,850
603,388
276,584
328,775
-
449,535
325,220
-
-
607,325
280,134
329,475
-
443,966
319,420
-
-
605,950
279,359
329,875
-
442,691
313,620
-
-
603,738
278,434
-
-
431,383
312,770
-
-
605,607
277,359
-
-
390,390
311,820
-
-
602,131
276,134
-
-
-
305,670
-
-
602,675
279,684
-
-
-
121,260
-
-
602,151
278,009
-
-
-
-
-
-
601,175
276,040
-
-
-
-
-
-
599,750
278,486
-
-
-
-
-
-
602,799
275,484
-
-
-
-
-
-
599,587
277,234
-
-
-
-
-
-
-
278,654
-
-
-
-
-
-
-
279,641
-
-
-
-
Totals $
878,425
$
2,361,400
$
10,259,001
$
5,285,756
$ 2,631,750
$ 4,414,308
$ 4,487,740
$ 3,686,530
152
Primary Government
General Obligation Bonds
$7,620,000
$3,955,000
Improvement
Improvement
Bonds of
Bonds of
2018A
2021 A
$3,840,000
Improvement
Refunding Total General
Bonds of Obligation
2021 B Bonds
$ 7,210,000 $ 3,955,000 $ 3,840,000 $ 44,015,000
1,617,450 578,566 253,927 7,444,853
$ 8,827,450 $ 4,533,566 $ 4,093,927 $ 51,459,853
$ 630,000
78,001 $
42,640
$ 7,878,735
632,175
296,022
571,065
4,217,961
633,900
296,372
580,665
4,212,269
630,250
296,622
579,965
3,902,726
631,225
296,772
579,065
3,895,726
631,750
296,822
577,965
3,878,889
631,825
296,773
579,372
3,488,290
631,450
296,622
583,190
3,482,757
630,625
296,373
-
2,553,323
629,350
297,102
-
2,511,628
627,625
298,695
-
2,110,255
630,375
299,948
-
1,933,942
627,600
295,958
-
1,803,718
629,300
296,790
-
1,803,305
-
297,260
-
1,175,496
-
297,434
-
1,175,717
-
-
-
876,821
-
-
-
278,654
-
-
-
279,641
$ 8,827,450 $ 4,533,566 $ 4,093,927 $ 51,459,853
153
%re Pride 006
Cottage
Grove
yl,05PCritY Mott
154
City of Cottage Grove
Deferred Tax Levies
December 31, 2021
Special
Assessment Bonds
$3,840,000
$1,865,000
Refunding
$5,700,000
$4,275,000
$7,620,000
$3,955,000
Total Special
Year of Tax
Bonds of
Bonds of
Bonds of
Bonds of
Bonds of
Bonds of
Assessment
Levy/Collection
2012A
2021B
2015A
2016B
2018A
2021A
Bonds
2021/22
$ 85,567
$ 514,438
$ 323,765
$ 201,117
$ 383,599
$ 251,122
$ 1,759,608
2022/23
88,266
516,870
316,853
198,926
385,646
251,542
1,758,103
2023/24
85,326
516,240
320,440
196,736
381,971
251,857
1,752,570
2024/25
87,489
515,400
323,712
194,545
383,231
252,067
1,756,444
2025/26
42,424
514,350
318,269
197,604
384,019
252,172
1,708,838
2026/27
-
513,090
318,076
195,308
384,334
252,171
1,662,979
2027/28
-
517,305
321,939
193,013
384,176
252,066
1,668,499
2028/29
-
-
315,014
195,967
383,546
251,857
1,146,384
2029/30
-
328,911
198,816
382,444
251,542
1,161,713
2030/31
-
-
196,310
380,868
253,390
830,568
2031/32
-
70,082
384,071
254,886
709,039
2032/33
-
-
381,393
250,770
632,163
2033/34
-
383,493
251,757
635,250
2034/35
-
-
252,518
252,518
2035/36
-
-
-
-
-
252,744
252,744
Totals
$ 389,072
$ 3,607,693
$ 2,886,979
$ 2,038,424
$ 4,982,791
$ 3,782,461
$ 17,687,420
155
City of Cottage Grove
Subcombining Balance Sheet -
Pavement Management Debt Service Schedule
December 31, 2021
With Comparative Totals for December 31, 2020
Assets
Cash and investments
Taxes receivable - delinquent
Special assessments receivable
Deferred
Delinquent
Special deferred
Total assets
Liabilities
and Fund Balances
Liabilities
Accounts payable
Deferred revenue
Total liabilities
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.
Improvement
Improvement
Improvement
Bonds 2013A
Bonds 2015A
Bonds 20l6B
(491)
(492)
(493)
$ 4,068,538
$ 787,002
$ 193,835
1,984
1,108
621
565,694
634,779
512,836
334
1,137
295
717
5,949
9,257
$ 4,637,267
$ 1,429,975
$ 716,844
- 1 -
- 1 -
1,984 1,108 621
566,745 641,865 522,388
568,729 642,973 523,009
4,068,538 787,001 193,835
$ 4,637,267 $ 1,429,975 $ 716,844
156
Totals
Pavement Management Debt
Service Schedule
$ 5,049,375 $ 1,879,500
3,713 4,797
1,713,309 2,134,827
1,766 2,738
15,923 15,473
$ 6,784,086 $ 4,037,335
$ - $ 500
1 -
i Snn
3,713 4,797
1,730,998 2,153,038
1,734,711 2,157,835
5,049,374 1,879,000
$ 6,784,086 $ 4,037,335
157
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
Revenues
General property taxes
Special assessments
Miscellaneous:
Investment earnings
Total revenues
Expenditures
Current
General government
Debt service
Principal
Interest and other charges
Total expenditures
Excess of revenues
under expenditures
Other Financing Sources
Bond Issuance
Bond Premium
Transfers in
Total other financing sources (uses)
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)
$ - $ 299,827 $ 199,825
4,373 129,928 135,549
61 89 (3,757)
4,434 429,844 331,617
5,728 1,957 1,480
890,000 475,000 365,000
8,563 222,511 115,610
904,291 699,468 482,090
(899,857) (269,624) (150,473)
- 3,837,927 -
- 113,843 -
635,243 - -
635,243 3,951,770 -
(264,614) 3,682,146 (150,473)
264,614 386,392 937,474
$ - $ 4,068,538 $ 787,001
158
G.O.
Improvement
Bonds20l6B
(493)
$ 149,813
99,697
Totals
Pavement Management Debt
Service Schedule
2021 2020
$ 649,465 $ 721,227
369,547 542,228
(419)
(4,026)
15,541
249,091
1,014,986
1,278,996
1,606
10,771
11,647
275,000
2,005,000
1,225,000
69,170
415,854
378,923
345,776
2,431,625
1,615,570
(96,685)
(1,416,639)
(336,574)
3,837,927 -
113,843 -
635,243 -
4,587,013 -
(96,685) 3,170,374 (336,574)
290,520 1,879,000 2,215,574
$ 193,835 $ 5,049,374 $ 1,879,000
159
City of Cottage Grove
Subcombining Balance Sheet -
Tax Increment Construction Revolving Schedule
December 31, 2021
With Comparative Totals for December 31, 2020
Assets
Cash and investments
Taxes receivable - delinquent
Total assets
Liabilities
and Fund Balances
Liabilities
Accounts payable
Interfund loan payable
Total liabilities
Deferred Inflows of Resources
Unavailable revenue - tax increment
Total deferred inflows of resources
Fund Balances
Restricted
Unassigned
Total fund balances
Total liabilities, deferred
inflows of resources, and
fund balances
TIF 1-12 (532,
TIF 1-8 (533) 534) TIF 1-15 (529) TIF 1-16 (528)
S 403,909 $ 1,607,458 $ 23,238 $ 2,675
S 403,909 $ 1,607,458 $ 23,238 $ 2,675
296,750 180,787
296,750 180,787
403,909 1,607,458 - -
- - (273,512) (178,112)
403,909 1,607,458 (273,512) (178,112)
$ 403,909 $ 1,607,458 $ 23,238 $ 2,675
160
TIF 1-17 TIF 1-20
Dominium Northpoint
(540) TIF 1-18 (542) (535)
Totals
TIF Revolving Capital
Reconciliation Project Schedule
to Nonmajor
$ 8 $ 172 $ 14,714 $ - $ 2,052,174 $ 1,389,168
- - - - - 5,144
$ 8 $ 172 $ 14,714 $ - $ 2,052,174 $ 1,394,312
$ - $ - $ 12,352 $ - $ 12,352 $ -
32,268 15,226 50,000 - 575,031 631,247
32,268 15,226 62,352 - 587,383 631,247
- - - - - 5,144
5,144
(546,576) 1,464,791 757,921
(32,260) (15,054) (47,638) 546,576 - -
(32,260) (15,054) (47,638) - 1,464,791 757,921
$ 8 $ 172 $ 14,714 $ - $ 2,052,174 $ 1,394,312
161
Subcombining Schedule of Revenues,
Expenditures, and Changes in Fund Balances -
Tax Increment Construction Revolving Schedule
For the Year Ended December 31, 2021
With Comparative Totals for the Year Ended December 31, 2020
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)
$ - $ 860,199 $ 92,165 $ 38,633
(7,053) (334) (114)
853,146 91,831 38,519
- 211,712 240 221
-_ - 11,064 6,381
211,712 11,304 6,602
641,434 80,527 31,917
403,909 966,024 (354,039) (210,029)
$ 403,909 $ 1,607,458 $ (273,512) $ (178,112)
162
TIF 1-17 TIF 1-20
Dominium Northpoint
(540) TIF 1-18 (542) (535)
$ 234,395 $ 19,278 $ -
1 1 -
234,396 19,279 -
Totals
TIF Revolving Capital
Project Schedule
2021 2020
$ 1,244,670 $ 647,919
(7,499) 12,432
1,237,171 660,351
233,867
18,129
47,638
511,807
451,565
525
524
-
18,494
21,895
234,392
18,653
47,638
530,301
473,460
4
626
(47,638)
706,870
186,891
(32,264)
(15,680)
-
757,921
571,030
$ (32,260) $
(15,054) $
(47,638)
$ 1,464,791 $
757,921
163
City of Cottage Grove
Subcombining Balance Sheet -
TIF Debt Service Revolving Schedule
December 31, 2021
With Comparative Totals for December 31, 2020
Totals
TIF Debt Service
Revolving Schedule
2014A Taxable
2014A Exempt
Tax Increment
Increment
Refunding
Bonds TIF 1-12
Bonds TIF 1-12
(338)
(341) 2021 2020
Assets
Cash and investments $ 110,615 $ 112,750 $ 223,365 $ 354,739
Liabilities
Interfund loan payable $ - $ 26,032 $ 26,032 $ 30,032
Fund Balances
Restricted 110,615 86,718 197,333 324,707
Total liabilities and
fund balances $ 110,615 $ 112,750 $ 223,365 $ 354,739
164
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, 2021
With Comparative Totals for the Year Ended December 31, 2020
Revenues
Tax increment collections
Investment earnings
Total revenues
Expenditures
Current
Economic development
Debt service
Principal retirement
Interest and other charges
Total expenditures
Net Change in Fund Balances
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 1-12
Bonds TIF 1-12
(338)
(341)
2021
2020
$ 104,040
$ 78,523 $
182,563
$ 673,740
(622)
(418)
(1,040)
400
103,418
78,105
181,523
674,140
856
600
1,456
2,071
65,000
200,000
265,000
275,000
39,040
3,401
42,441
48,820
104,896
204,001
308,897
325,891
(1,478)
(125,896)
(127,374)
348,249
112,093
212,614
324,707
(23,542)
$ 110,615
$ 86,718 $
197,333
$ 324,707
165
%re Pride 006
Cottage
Grove
yl,05PCritY Mott
166
STATISTICAL SECTION (UNAUDITED)
167
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.
169
City of Cottage Grove
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Governmental activities
Net investment in capital assets
$ 120,412,875
$ 124,156,059
$ 127,260,042
$ 125,562,970
Restricted
4,210,913
7,187,948
6,971,432
8,766,706
Unrestricted
25,024,447
25,908,617
28,277,397
24,285,174
Total governmental activities net position
$ 149,648,235
$ 157,252,624
$ 162,508,871
$ 158,614,850
Business -type activities
Net investment in capital assets $ 53,225,445 $ 51,453,195 $ 54,432,059 $ 54,202,710
Restricted - - - -
Unrestricted 14,645,490 16,792,024 15,896,363 13,980,970
Total business -type activities net position
$ 67,870,935
$ 68,245,219
$ 70,328,422
$ 68,183,680
Primary Government
Net investment in capital assets
$ 173,638,320
$ 175,609,254
$ 181,692,101
$ 179,765,680
Restricted
4,210,913
7,187,948
6,971,432
8,766,706
Unrestricted
39,669,937
42,700,641
44,173,760
38,266,144
Total primary government net position
$ 217,519,170
$ 225,497,843
$ 232,837,293
$ 226,798,530
170
2016 2017
Fiscal Year
2018 2019 2020 2021
$
132,834,867
$
140,298,832
$
152,256,234
$
173,846,256
$
198,383,059
$
204,395,412
7,609,138
2,855,507
6,177,599
5,199,682
7,959,917
8,691,283
19,091,443
24,845,782
21,252,792
24,697,514
25,127,751
30,394,564
$
159,535,448
$
168,000,121
$
179,686,625
$
203,743,452
$
231,470,727
$
243,481,259
$
54,063,470
$
56,060,163
$
63,822,257
$
70,373,534
$
75,408,885
$
87,203,382
13,628,016
11,528, 841
11,707,720
12,742,735
13,696,597
15, 530,934
$
67,691,486
$
67,589,004
$
75,529,977
$
83,116,269
$
89,105,482
$
102,734,316
$
186,898,337
$
196,358,995
$
216,078,491
$
244,219,790
$
273,791,944
$
291,598,794
7,609,138
2,855,507
6,177,599
5,199,682
7,959,917
8,691,283
32,719,459
36,374,623
32,960,512
37,440,249
38,824,348
45,925,498
$
227,226,934
$
235,589,125
$
255,216,602
$
286,859,721
$
320,576,209
$
346,215,575
Table 1
171
City of Cottage Grove
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Expenses
Governmental activities
General government
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
Community development
Economic development
Public safety
Public works
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
2012
2013
2014
$ 2,997,825
$ 2,270,332
$ 2,229,518
-
903,180
946,001
362,009
61,302
545,646
7,069,301
6,949,225
7,212,998
6,609,111
8,121,230
7,599,182
3,059,273
4,768,181
5,119,093
827,645
976,891
808,642
20.925.164
24.050141
24.461.090
1,614,321
-
-
659,869
742,410
867,690
1,109,809
1,322,635
1,412,855
2,049,877
2,341,555
2,216,819
2,242,778
2,278,958
2,428,944
7,676,654
6,685,558
6,926,308
$ 28,601,818 $ 30,735,899 $ 31,387,388
$ 883,272
$ 238,721
$ 138,768
-
1,115,203
989,140
210
7,626
1,771
429,646
353,130
325,368
880,095
797,432
1,010,695
1,026,685
2,413,744
2,448,968
1,075,529
1,211,506
1,545,268
3,064,292
10,370,972
9,401,775
7359729
16.508.3 34
15.961.753
1,566,035
540,696
580,837
658,810
1,528,756
1,569,017
1,626,320
2,773,937
2,369,570
1,868,942
2,207,363
2,175,479
2,151,756
1.051.532 1.783.762
75,010, RS / /, /4b,4JD 6,UZ5V,DVU
$ 15,976,516 $ 24,254,769 $ 23,951,343
172
Fidcal Year
Mi5 7mA ?017 MIR ?niq ?nzn ?mi
$ 2,346,805
$ 3,450,479
$ 2,398,669
$ 2,573,693
$ 2,704,159
$ 5,621,197
$ 2,936,133
1,086,197
1,173,071
1,527,549
1,626,960
1,524,566
1,750,768
2,305,822
1,460,114
2,257,548
740,668
275,927
492,107
583,767
823,036
7,662,393
10,153,726
9,308,430
9,353,309
9,272,317
6,947,733
11,098,534
7,426,045
9,623,335
8,413,073
8,559,929
10,062,896
13,650,476
15,567,240
5,153,844
5,340,558
5,137,951
5,035,903
5,566,175
5,638,642
6,365,540
1,029,228
875,642
962,772
1,037,986
1,286,632
1,141,147
1,236,037
26,164,626
32,874,359
28,489,112
28,463,707
30,908,852
35,333,730
40,332,342
746,794
746,005
882,660
991,041
1,073,480
1,152,326
1,262,557
1,507,766
1,688,041
1,571,044
1,605,779
1,750,771
1,843,840
2,091,317
2,438,166
2,370,466
2,789,792
2,980,080
2,904,174
3,039,639
3,428,669
2,448,283
2,727,188
2,879,119
2,881,446
3,139,150
3,463,493
3,532,908
7,141,009
7,531,700
8,122,615
8,458,346
8,867,575
9,499,298
10,315,451
$ 33,305,635 $ 40,406,059 $ 36,611,727 $ 36,922,053 $ 39,776,427 $ 44,833,028 $ 50,647,793
$ 117,636
$ 665,193
$ 108,808
$ 319,999
$ 196,283
$ 193,964
$ 54,220
1,527,836
1,660,365
2,240,628
1,758,096
2,424,030
2,648,715
3,439,162
3,467
5,210
210
210
572,983
400,210
210
394,574
431,862
363,782
360,609
409,463
764,732
1,689,365
971,599
975,532
1,099,690
3,932,082
3,106,452
1,095,238
2,304,418
3,091,072
2,725,288
2,682,090
3,376,799
3,094,394
2,578,312
3,798,744
1,237,805
1,676,805
1,408,099
3,710,686
2,231,407
17,726,027
4,648,424
5,861,631
10,284,047
13,805,696
13,899,381
29,783,591
20,144,097
23,828,108
13.205.620
18.424.302
21.709.003
27.357.862
41.818.603
45.551.295
39.762.651
549,005
530,905
685,560
821,512
825,587
962,958
1,115,511
1,431,007
1,766,236
1,510,101
2,006,555
2,066,733
1,772,704
2,524,990
1,840,088
1,817,862
1,664,292
2,144,652
2,537,654
3,002,920
3,648,447
2,310,624
2,291,038
2,294,714
2,685,608
3,064,703
3,190,196
3,352,994
-
-
-
2,350
23,409
101,196
147,694
361,762
196,671
441,738
4,488,437
2,700,615
3,842,839
6,359,047
6,492,486
6,602,712
6,596,405
12,149,114
11,218,701
12,872,813
17,148,683
$ 19,698,106 $ 25,027,014 $ 28,305,408 $ 39,506,976 $ 53,037,304 $ 58,424,108 $ 56,911,334
Table 2
173
City of Cottage Grove
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues and Other Changes in Net Position
Governmental activities
Property taxes
Franchise taxes
Aggregate taxes
Tax increment collections
Grants and contributions not restricted to specific programs
Unrestricted investment earnings (loss)
Gain on sale of capital assets
Transfers
Special item -golf course loan forgiveness
Total governmental activities
Business -type activities
Grants and contributions not restricted to specific programs
Unrestricted investment earnings (loss)
Gain on sale of capital assets
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Notes: (1) Community Development is in General Government in 2011 & 2012.
(2) Golf Course reclassified to a special revenue fund in 2013.
Fiscal Year
2612 2M't MIA
$ (13,565,435) $ (7,542,007) $ (8,599,327)
940,133 1,060,877 1,163,282
$ (12,625,302) $ (6,481,130) $ (7,436,045)
$ 12,330,135
$ 12,096,046
$ 12,616,267
537,682
540,767
542,689
26,180
26,135
26,236
892,438
939,314
711,628
29,742
29,060
83,682
368,821
(149,614)
551,910
10,546
3,997
43,904
413,895
375,266
(720,742)
-
1,020,000
-
14,609,439
14, 880,971
13, 855, 574
118,396
(45,902)
199,179
(413,895)
(375,266)
720,742
(295,499)
(421,168)
919,921
$ 14,313,940 $ 14,459,803 $ 14,775,495
$ 1,044,004 $ 7,338,964 $ 5,256,247
644,634 639,709 2,083,203
$ 1,688,638 $ 7,978,673 $ 7,339,450
174
Fidcal Year
2015 2016 2017 2018 2019 2020 2021
$ (12,959,006) $ (14,450,057) $ (6,780,109) $ (1,105,845) $ 10,909,751 $ 10,217,565 $ (569,691)
(648,523) (928,988) (1,526,210) 3,690,768 2,351,126 3,373,515 6,833,232
$ (13,607,529) $ (15,379,045) $ (8,306,319) $ 2,584,923 $ 13,260,877 $ 13,591,080 $ 6,263,541
$ 13,394,585
$ 13,956,582
$ 14,483,061
$ 15,171,020
$ 15,608,602
$ 16,881,359
$ 17,494,963
526,643
516,931
560,492
567,875
583,715
596,537
615,326
37,133
39,748
28,442
20,791
22,250
22,699
23,467
710,541
776,061
1,002,046
769,475
1,085,358
1,321,659
1,427,233
99,137
126,058
126,670
-
113,435
181,316
83,568
357,170
285,494
330,903
519,675
982,812
582,781
(258,924)
(15,157)
-
-
71,631
49,186
34,579
31,111
613,878
(330,219)
(1,286,832)
(4,126,962)
(4,973,641)
(2,435,861)
(6,836,521)
15,723,930
15,370,655
15,244,782
12,993,505
13,471,717
17,185,069
12,580,223
-
7,736
17,161
-
-
-
-
137,896
96,851
119,735
152,466
261,525
179,837
(40,919)
-
1,988
-
-
-
-
-
(613,878)
330,219
1,286,832
4,126,962
4,973,641
2,435,861
6,836,521
(475,982)
436,794
1,423,728
4,279,428
5,235,166
2,615,698
6,795,602
$ 15,247,948 $ 15,807,449 $ 16,668,510 $ 17,272,933 $ 18,706,883 $ 19,800,767 $ 19,375,825
$ 2,764,924 $ 920,598 $ 8,464,673 $ 11,887,660 $ 24,381,468 $ 27,402,634 $ 12,010,532
(1,124,505) (492,194) (102,482) 7,970,196 7,586,292 5,989,213 13,628,834
$ 1,640,419 $ 428,404 $ 8,362,191 $ 19,857,856 $ 31,967,760 $ 33,391,847 $ 25,639,366
Continued
Table 2
175
City of Cottage Grove
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
2016
General Fund
Nonspendable
Prepaid items
$
5,764
$
13,175
$
18,019
$
15,383
$
11,222
Assigned
1,695,203
1,443,243
1,380,698
1,408,357
1,393,200
Unassigned
7,449,565
7,775,548
8,113,424
8,829,697
9,036,425
Total general fund
$
9,150,532
$
9,231,966
$
9,512,141
$
10,253,437
$
10,440,847
All other Governmental Funds
Nonspendable
Prepaid items
$
938
$
10,229
$
8,529
$
7,343
$
5,723
Inventory
-
31,617
24,434
20,696
28,750
Restricted
2,997,220
4,347,850
4,478,812
4,857,365
3,200,692
Committed
560,321
416,027
329,841
394,204
731,090
Assigned
20,240,161
22,936,733
25,591,181
26,322,717
23,020,349
Unassigned
(9,521,907)
(10,379,965)
(10,958,389)
(9,122,473)
(10,240,496)
Total all other
governmental funds
$
14,276,733
$
17,362,491
$
19,474,408
$
22,479,852
$
16,746,108
Total all funds
$
23,427,265
$
26,594,457
$
28,986,549
$
32,733,289
$
27,186,955
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.
176
Fiscal Year
2017 2018 2019 2020 2021
$ 8,750 $
47,532 $
33,719
$ 27,042 $
43,228
1,589,169
1,383,065
1,432,671
1,768,606
1,676,895
9,233,073
9,814,949
10,224,988
10,479,728
11,384,256
$ 10,830,992 $
11,245,546 $
11,691,378
$ 12,275,376 $
13,104,379
$ 2,827 $
10,889 $
14,933 $
33,818 $
7,743
30,625
30,297
25,601
28,265
84,153
3,306,203
3,515,300
3,876,020
4,969,881
9,649,776
947,486
1,383,402
1,736,590
2,136,969
2,531,015
21,301,562
19,445,494
19,583,736
21,455,576
25,923,365
(5,511,868)
(5,804,056)
(7,464,138)
(9,643,235)
(4,875,306)
$ 20,076,835 $
18,581,326 $
17,772,742 $
18,981,274 $
33,320,746
$ 30,907,827 $
29,826,872 $
29,464,120 $
31,256,650 $
46,425,125
Table 3
177
City of Cottage Grove
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Revenues
General property taxes
$ 12,367,978 $
12,081,764 $
12,687,917 $
13,465,987
Other taxes
1,456,300
1,513,749
1,292,229
1,274,317
Special assessments
1,153,019
1,575,736
1,326,017
1,499,796
Licenses and permits
831,687
860,954
904,400
1,305,442
Direct charges to developers
16,555
2,106,723
661,861
307,971
Intergovernmental
2,684,040
4,642,768
3,932,021
2,415,754
Charges for services
2,467,187
4,023,844
3,572,351
3,808,618
Rent
-
-
435,975
450,428
Fines and forfeits
198,022
188,657
171,317
228,642
Investment earnings (loss)
196,879
(173,267)
452,293
262,799
Interest on interfund loan
155,301
47,025
59,066
74,340
Connection charges
282,265
805,261
841,434
318,092
Park dedication fees
41,990
252,386
63,595
9,010
Miscellaneous
601,255
705,409
1,005,867
1,138,274
Total revenues
22,452,478
28,631,009
27,406,343
26,559,470
Expenditures
Current
General government
2,689,156
2,071,272
2,025,709
2,155,327
Community development
-
892,699
919,126
1,058,537
Economic development
491,040
151,562
541,838
1,456,306
Public safety
6,151,677
6,297,323
6,484,552
6,751,804
Public works
4,059,582
4,271,651
4,306,068
4,344,837
Culture and recreation
2,387,655
3,954,968
4,169,469
4,154,992
Capital outlay
15,420,808
12,274,561
5,028,422
7,036,802
Debt Service
Principal retirement
1,335,000
950,000
2,470,000
1,320,000
Capital lease payment
250,000
293,953
305,076
316,235
Interest and fiscal charges
849,046
769,129
882,508
912,107
Total expenditures
33,633,964
31,927,118
27,132,768
29,506,947
Excess revenues over (under) expenditures
(11,181,486)
(3,296,109)
273,575
(2,947,477)
Other Financing Sources (Uses)
Transfers in
2,171,149
759,446
1,840,995
3,049,657
Transfers out
(1,881,870)
(638,374)
(1,213,059)
(2,362,952)
Bonds issued
1,865,000
7,345,000
1,405,000
5,700,000
Premium on debt issued
-
211,507
18,461
254,245
Discount on debt Issued
(15,852)
-
-
-
Proceeds from sale of capital assets
10,546
27,195
67,120
53,267
Total other financing sources (uses)
2,148,973
7,704,774
2,118,517
6,694,217
Net change in fund balances
$ (9,032,513) $
4,408,665 $
2,392,092 $
3,746,740
Debt service as a percentage of
noncapital expenditures
13.4%
10.2%
16.5%
11.3%
Note: (1) Community Development is in General Government in 2011 & 2012
178
Fiscal Year
2016 2017 2018 2019 2020 2021
$ 13,957,128 $
14,649,224 $
15,166,368 $
15,631,133 $
16,887,233 $
17,514,744
1,332,740
1,402,475
1,358,141
1,691,323
1,940,895
2,066,026
2,004,196
2,715,466
2,482,866
4,282,185
6,085,906
8,420,102
1,323,680
1,922,934
1,773,543
2,277,642
2,480,933
3,181,740
277,860
273,200
132,385
299,683
444,907
627,540
5,642,451
8,077,051
5,283,405
17,716,725
20,635,136
10,662,269
4,061,301
4,140,390
4,903,311
4,988,080
5,062,505
6,969,681
464,078
435,688
486,270
474,994
492,206
494,880
236,260
184,942
208,744
220,024
141,380
192,036
219,963
310,579
460,856
924,396
527,309
(269,070)
52,040
52,206
26,474
23,903
21,895
19,395
649,489
2,050,958
2,776,937
1,932,844
2,563,422
5,293,099
212,865
526,936
853,659
472,500
1,110,209
2,014,802
1,864,861
1,982,338
2,024,992
1,870,544
1,151,221
1,024,348
32,298,912
38,724,387
37,937,951
52,805,976
59,545,157
58,211,592
3,143,136
2,200,031
2,453,986
2,488,722
5,122,412
2,504,935
1,117,760
1,304,601
1,594,534
1,486,081
1,753,836
2,329,259 (1)
2,236,464
695,356
230,615
447,061
539,092
823,036
7,447,058
7,798,262
8,660,273
8,535,996
8,186,255
10,257,201
4,133,659
3,900,347
4,066,609
4,769,732
6,257,352
6,910,688
4,438,628
4,303,051
4,627,375
5,013,805
4,646,429
5,968,879
17,201,219
22,426,545
20,919,610
34,786,137
28,300,835
17,786,563
6,570,000
1,915,000
3,595,000
2,420,000
2,435,000
3,785,000
327,432
-
-
-
-
-
1,023,721
900,240
1,123,547
1,253,185
1,352,629
1,344,234
47,639,077
45,443,433
47,271,549
61,200,719
58,593,840
51,709,795
(15,340,165)
(6,719,046)
(9,333,598)
(8,394,743)
951,317
6,501,797
1,648,258
7,111,644
5,149,453
5,308,513
5,094,561
2,897,844
(1,162,564)
(6,135,532)
(4,649,003)
(4,486,763)
(4,267,119)
(2,265,181)
8,935,000
9,155,000
7,620,000
6,935,000
7,795,000
357,684
289,321
111,630
239,309
235,748
15,453
19,485
20,563
35,932
13,771
3,267
9,793,831
10,439,918
8,252,643
8,031,991
841,213
8,666,678
$ (5,546,334) $
3,720,872 $
(1,080,955) $
(362,752) $
1,792,530 $
15,168,475
26.0%
12.2%
17.9%
13.9%
11.9%
13.7%
Table 4
179
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
2021
$ 30,539,286
$ 7,416,715
$ 777,431
$ 4,462,625
$ 826,222
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
Source: Washington County
Notes:
Taxable property values include both urban and rural properties.
(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.
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
$ 44,022,279
$ 5,615,832
$ 49,638,111
1.24%
$ 3,991,958,100
37.351
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
Table 5
181
City of Cottage Grove
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(rate per $1,000 of assessed value)
Table 6
City Direct Rate(1)
Overlapping Rates
Total Direct
and
Total City
Washington
School
Total
Overlapping
Year
General
Debt Service
Direct Rate
County
District (2)
Other (4)
Overlapping
Tax Rate
2021
31.895
5.456
37.351
27.435
34.181
2.304
63.920
101.271
2020
33.645
5.537
39.182
28.944
33.904
2.382
65.230
104.412
2019
35.025
3.933
38.958
29.682
34.926
3.994
68.602
107.560
2018
36.509
4.075
40.583
29.983
33.303
4.175
67.461
108.044
2017
40.156
2.856
43.012
30.448
34.309
4.345
69.101
112.113
2016
40.422
2.717
43.139
30.564
36.812
4.568
71.944
115.083
2015
38.886
2.705
41.591
30.186
35.675
4.182
70.043
111.634
2014
40.976
2.836
43.812
32.811
39.169
5.401
77.381
121.193
2013
42.665
2.381
45.046
34.225
41.285
5.637
81.147
126.193
2012
39.065
2.381
41.446
31.939
37.894
5.139
74.972
116.418
Source: Washington County
Not all overlapping rates apply to all City of Cottage Grove property owners.
City's property tax revenue base includes both urban and rural properties. Rural rate is 70% of urban rate plus debt.
(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
182
City of Cottage Grove
Prinipcal Property Taxpayers
Current year and nine years ago
2021
Percentage
of Total
City
Net Tax
Tax
Net Tax
Capacity
Capacity
Capacity
Taxpayer
Value
Rank
Value
Value
Xcel Energy/NSP
$ 768,528
1
1.64%
$ 518,100
3M Company
712,458
2
1.52%
637,743
Mars II Inc.
353,980
3
0.76%
170,584
Hinton Heights -Minneapolis LLC
422,201
4
0.90%
PHS/Cottage Grove Inc
402,843
5
0.86%
176,591
Renewal by Andersen Corporation
291,818
6
0.62%
175,510
Wal-Mart Real Estate Business Trust
261,480
7
0.56%
North Star Sheets LLC
254,170
8
0.54%
MN Pipeline Co
219,490
9
0.47%
Exchangeright Net Leased Portfolio 27
207,442
10
0.44%
Menard Inc.
-
193,170
Dayton -Hudson Corporation
-
160,496
Grove -Rainbow LP
-
135,516
Wer Dis LLC
-
131,250
Kohl's Illinois Inc & Kohl's Dept Stores Inc
-
122,662
Total
$ 3,894,410
8.99%
$ 2,421,622
Source: Washington County
2012
Rank
2
1
6
4
5
3
7
8
9
10
Table 7
Percentage
of Total
City
Tax
Capacity
Value
1.72%
2.12%
0.57%
0.59%
0.58%
0.64%
0.53%
0.45%
0.44%
0.41%
7.44%
183
City of Cottage Grove
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year
Fiscal Year of Levy
Percentage
Fiscal
Gross Operating
Debt
MVHC/ State Aid
Total Net
of
Year
Tax Levy
Tax Levy
Ag Credit (1) Cut
Tax Levy
Amount
Levy
2021
$15,033,501
$ 2,576,500
$ (6,226) $ -
$17,603,775
$17,548,413
99.69%
2020
14,557,824
2,397,500
(6,788) -
16,948,536
16,890,861
99.66%
2019
14,100,682
1,590,000
(7,213) -
15,683,469
15,631,548
99.67%
2018
13,700,988
1,535,000
(7,072) -
15,228,916
15,156,690
99.53%
2017
13,798,587
985,000
(8,890) -
14,774,697
14,694,114
99.45%
2016
13,174,084
890,000
(9,707) -
14,054,377
13,991,560
99.55%
2015
12,526,600
875,500
(8,722) -
13,393,378
13,326,911
99.50%
2014
11,873,130
826,000
(5,947) -
12,693,183
12,610,243
99.35%
2013
11,585,100
656,150
(5,354) -
12,235,896
12,114,166
99.01%
2012
11,683,300
557,950
(4,762) -
12,236,488
12,104,072
98.92%
Notes:
(1) In 2009 a property tax classification appeal for one property owner resulted in a large abatement.
Collections
in Subsequent
Abatements Years
Total Collections to Date
Amount
Percentage
of
Levy
$ (20,718) $
- $17,548,413
99.69%
(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%
Table 8
185
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(1)
Bonds(1)
Leases
2021
$ 820,000
$ 14,701,649
$ 27,242,322
$ -
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
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
$ 2,420,259
2,686,458
2,947,657
Business -Type Activities
Other
Total
Revenue Capital Long -Term
Primary
Bonds(1) Lease Debt
Government
$ - $ - $ -
$ 45,184,230
- - -
41,041,364
- - -
43,576,327
- - -
38,919,104
- - -
34,885,704
- - -
27,436,125
609,856 - -
25,725,523
717,221 - -
21,533,521
824,586 - -
23,014,308
1,036,584 142,696 900,000
17,761,525
Percentage
of Personal
Per
Income (2)
Capita(2)
1.58%
1,141
1.55%
1,064
1.74%
1,141
1.67%
1,042
1.58%
956
1.30%
761
1.28%
718
1.12%
605
1.25%
650
0.97%
505
Table 9
187
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
IncrementBonds(1)
Bonds(1)
Bonds(1)
2021
$ 820,000
$ 14,701,649
$ 27,242,322
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
Less: Amounts
Available in Debt
Service Funds Total
$ 8,133,965
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
$ 34,630,006
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
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)
0.87%
874
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 %
222
Table 10
City of Cottage Grove
Direct and Overlapping Governmental Activities Debt
As of December 31, 2021
Table 11
Percent of Debt
Net Debt Applicable
Outstanding to City
Overlapping
City of Cottage Grove
Share of
Overlapping
Debt
Washington County $
113,905,000
12.9454% $
14,745,472
School Districts
ISD No. 200 (Hastings)
71,887,524
12.8590%
9,244,046
ISD No. 833 (South Wash. County)
291,425,000
31.2452%
91,056,286
Metro Council
187,200,000
0.9597%
1,796,558
Total Overlapping
116,842,362
City of Cottage Grove Direct Debt
45,184,230
100.00%
45,184,230
Total Direct and Overlapping Debt: $
709,601,754
$
162,026,592
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.
:'
City of Cottage Grove
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
2012
2013
2014
2015
2016
Debt limit
$ 73,931,187
$ 68,337,021
$ 71,894,811
$ 81,179,262
$ 83,725,578
Total net debt applicable to limit
5,615,000
5,355,000
5,085,000
4,805,000
4,660,000
Legal debt margin
$ 68,316,187
$ 62,982,021
$ 66,809,811
$ 76,374,262
$ 79,065,578
Total net debt applicable to the limit
as a percentage of debt limit
7.59%
7.84%
7.07%
5.92%
5.57%
190
Fiscal Year
2017 2018 2019 2020 2021
$ 86,674,569 $ 93,767,628 $ 102,223,218 $ 110,756,082 $ 119,758,743
13,240,000 12,645,000 11,690,000 11,005,000 10,300,000
$ 73,434,569 $ 81,122,628 $ 90,533,218 $ 99,751,082 $ 130,058,743
15.28% 13.49% 11.44% 9.94% 8.60%
Legal Debt Margin Calculation for Fiscal Year 2021
Market Value (after fiscal disparities) $4,439,575,300
Debt limit (3% of assessed value) 133,187,259
Debt applicable to limit 10,300,000
Legal debt margin $ 122,887,259
Table 12
191
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)
2021
39,605
$ 2,862,372,165 $
72,273
18,502
3.6%
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%
Sources:
(1) Metropolitan Council-2012-2019 & 2021. Census-2020.
(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.
192
City of Cottage Grove
Principal Employers
Current year and nine years ago
Taxpayer Employees
School District 833
2,220
Renewal by Andersen
1,139
3M Cottage Grove
740
HY-VEE
700
Walmart
335
Up -North Plastics
300
City of Cottage Grove
244
Werner Electric
200
Menard's
150
Target
130
Cub Foods
Rainbow Foods
Total
6,158
Table 14
2021
2012
Percentage
Percentage
of Total
of Total
Rank
Employment
Employees
Rank
Employment
1
27%
1,315
1
20%
2
14%
330
3
5%
3
9%
750
2
11%
4
9%
0%
5
4%
0%
6
4%
250
4
4%
7
3%
174
7
3%
8
2%
170
8
3%
9
2%
200
6
3%
10
2%
130
9
2%
0%
200
5
3%
0%
99
10
1%
75%
3,618
54%
Sources: City of Cottage Grove Annual Municipal Disclosure Reporting and Cottage Grove Economic Development Department.
193
General Government
Total General Government
Public Safety
Police/Cottage Grove EMS
Officers
Civilians
Fire/Emergency Management
Total Public Safety
Public Works
Recreation
Ice Arena
Water/Sewer
Stone Sewer
Golf Course Fund
Street Light Fund
Fleet Maintenance
Total
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,
2012
2013
2014
2015
2016
2017
2018
2019
22.06
23.38
23.40
23.25
25.70
27.60
28.20
29.00
39.00
39.00
40.00
40.00
43.56
46.84
46.84
46.84
8.46
8.09
8.26
7.56
7.56
7.56
7.56
7.56
4.00
5.00
7.00
9.00
11.75
15.10
15.10
15.10
51.46
52.09
55.26
56.56
62.87
69.50
69.50
69.50
20.83
21.68
23.68
24.08
22.12
23.73
23.49
24.09
2.50
2.55
2.55
2.55
2.55
2.70
2.70
2.70
3.20
3.65
3.65
3.65
3.55
2.60
2.60
2.60
8.23
8.18
8.18
8.28
9.28
10.08
10.08
10.08
3.54
3.54
3.54
3.54
3.54
3.50
3.50
3.50
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.00
1.06
1.06
1.06
1.06
1.06
1.23
1.23
1.23
4.04
4.04
4.04
4.04
4.04
4.00
4.00
4.00
121.92
125.17
130.36
132.01
139.71
149.94
150.30
151.70
Source: City of Cottage Grove Finance Office
194
Budgeted Full -Time
Equivalent
Employees as of
2020 2021
26.00 26.50
46.64 47.94
7.56 7.56
18.00 18.00
72.20 73.50
29.70 39.00
1.95 1.50
2.85 2.00
10.00 8.00
3.50 3.00
5.00 4.00
1.50 1.00
4.00 2.00
156.70 160.50
Table 15
195
City of Cottage Grove
Operating Indicators by Function/Program
Last Ten Years
Function/Program
2012
2013
2014
2015
2016
2017
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)
53
56
77
65
99
255
Code Enforcement Inspections
2,407
2,826
1,482
1,013
841
1,018
Public Safety
Police
Crimes - Part 1
756
783
774
719
673
767
Crimes - Part II
1,614
1,473
1,434
1,419
1,424
1,471
Total Calls for Service
17,348
18,151
18,448
20,576
21,331
20,879
Fire
Medical
2,347
2,437
2,562
2,464
2,681
2,790
Fire
295
280
301
290
279
280
Avg Response Time (minutes) Medical*
6:51
6:15
6:19
6:13
6:21
6:25
Avg Response Time (minutes) Fire*
8:04
7:25
7:34
7:06
6:54
7:05
Avg Response Time (minutes) Both*
6:59
6:22
6:27
6:16
6:24
6:28
*Entire service area
Public Works
Sq. Yards of Streets Sealcoated
488,210
457,275
199,725
118,159
193,249
71,152
Miles of Streets New Construction
0.30
1.23
1.99
0.56
1.11
1.02
Miles of watermain added
0.79
2.42
1.84
1.06
1.20
3.64
Source: Various City of Cottage Grove Departments
Notes:
(1) Information not available is labeled n/a.
196
2018 2019 2020 2021
4
1
3
1
22,076
22,689
24,444
25,006
17,369
2,559
22,932
8,352
75.00%
11.28%
93.81%
33.40%
185 284 382 574
1,119 803 666 771
619
619
616
459
1,358
948
961
738
22,647
20,375
32,288
28,933
2,914
2,950
2,995
3,747
307
256
331
387
6:25
7:17
6:18
7:30
7:13
6:08
9:38
9:24
6:54
7:03
8:18
8:27
0 0 250,766 0
4.82 2.80 2.87 4.94
4.30 4.52 9.16 6.94
Table 16
197
City of Cottage Grove
Capital Asset Statistics by Function/Program
Last Ten Years
Function/Program 2012
Public Safety
Police
Fiscal Year
2013 2014 2015 2016 2017
Stations
1
1
1
1
1
1
Patrol Units
12
13
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
2,345
2,416
2,481
2,495
2,592
2,682
Xcel owned Lights
301
301
301
301
301
301
Streets (miles)
157.13
158.36
160.35
160.91
162.02
163.04
Sidewalks/trails (miles)
48.61
53.82
57.83
59.56
61.98
64.87
Parks (acreage)
Community Parks
377
377
377
400
400
400
Neighborhood Parks
244
275
303
275
275
275
Recreation facilities
21
21
21
15
15
15
County Parks
571
571
571
569
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
581
581
961
961
961
Water
Number of Connections
10,538
10,573
10,640
10,706
10,789
10,891
Miles of Water Mains and Laterals
144.66
147.08
148.92
149.98
151.18
154.82
Sanitary Sewer
Number of Connections
10,486
10,532
10,604
10,670
10,667
10,983
Miles of Sanitary Sewer Mains and Laterals
127.99
129.32
131.11
131.45
132.81
135.42
Storm Sewer
Miles of storm sewers
80.39
85.41
87.81
89.52
93.94
98.75
Source: Various City Departments
Fiscal Year
2018 2019 2020 2021
1 1 1 1
16 17 17 19
3 3 3 3
6 5 5 5
2,797
2,898
2,968
3,071
301
301
301
301
167.87
170.67
173.53
178.47
70.06
75.55
81.28
85.97
400
400
400
400
275
275
275
280
15
15
15
15
569
569
569
569
238
238
238
238
219
219
219
219
961
969.8
969.8
980
11,160 11,212 11,513 12,081
159.12 164.24 175.40 182.34
11,256 11,521 11,714 12,280
139.51 142.42 146.87 153.29
106.39 111.18 116.96 122.53
Table 17
199