HomeMy WebLinkAboutCity of Ham Lake - Public Financial Report ANNUAL COMPREHENSIVE
FINANCIAL REPORT
OF THE
CITY OF HAM LAKE,
MINNESOTA
For the Year Ended
December 31, 2022
Prepared by
THE DEPARTMENT OF FINANCE
AND ADMINISTRATION
MEMBER OF GOVERNMENT FINANCE OFFICERS ASSOCIATION
OF THE UNITED STATES AND CANADA
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City of Ham Lake
Table of Contents
Introductory Section
Letter of Transmittal 3
Elected Officials and Administration 8
Organizational Chart 9
Certificate of Achievement for Excellence in Financial Reporting 10
Financial Section
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 33
Statement of Activities 35
Fund Financial Statements
Balance Sheet—Governmental Funds 36
Reconciliation of the Balance Sheet to the Statement of Net Position
—Governmental Funds 39
Statement of Revenues, Expenditures, and Changes in Fund Balances
—Governmental Funds 40
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities—Governmental Funds 42
Statement of Revenues, Expenditures, and Changes in Fund Balance
—Budget and Actual—General Fund 43
Notes to Basic Financial Statements 45
Required Supplementary Information
Schedule of City's Proportionate Share of Net Pension Liability General
Employees Plan Retirement Fund 80
Schedule of City's Proportionate Share of Net Pension Liability Police and
Fire Plan Retirement Fund 80
Schedule of City Contributions General Employees Plan Retirement Fund 81
Schedule of City Contributions Police and Fire Plan Retirement Fund 81
Schedule of Changes in the Net Pension Liability and Related Ratios
—Ham Lake Firefighters' Benefit Association 82
Schedule of City Contributions and Non Employer Entity Contributions
—Ham Lake Firefighters' Benefit Association 84
Notes to Required Supplementary Information 86
Supplementary Information
Combining and Individual Fund Financial Statements and Schedules
Fund Descriptions 97
Combining Balance Sheet—Nonmaj or Governmental Funds 98
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
—Nonmajor Governmental Funds 99
Nonmajor Special Revenue Funds 101
City of Ham Lake
Table of Contents
Supplementary Information (Continued)
Combining and Individual Fund Financial Statements and Schedules
Subcombining Balance Sheet—Nonmajor Special Revenue Funds 102
Subcombining Statement of Revenues, Expenditures, and Changes in
Fund Balances—Nonmajor Special Revenue Funds 104
Schedule of Revenues, Expenditures, and Changes in Fund Balances
—Budget and Actual— Special Revenue Funds
Cable Television Fund 106
The Ham Laker Fund 107
Lawful Gambling Fund 108
Future Drainage Fund 109
Recycling Program Fund 110
Street Lighting Fund 111
Oak Wilt Fund 112
EDA Fund 113
Lodging Tax Fund 114
Schedule of Revenues, Expenditures, and Changes in Fund Balances
—Budget and Actual—Debt Service Funds
2010 CIP Bond Fund 115
2016A Circle Pines 116
Schedule of Revenues, Expenditures, and Changes in Fund Balances
—Budget and Actual—Park and Beach Land Fund 117
Schedule of Revenues, Expenditures, and Changes in Fund Balances
—Budget and Actual—Equipment and Building Fund 118
Schedule of Revenues, Expenditures, and Changes in Fund Balances
—Budget and Actual—Revolving Street Fund 119
Schedule of Revenues, Expenditures, and Changes in Fund Balances
—Budget and Actual—General Fund 120
Statistical Section Table Page
Statistical Section (Unaudited) 127
Net Position by Component 1 128
Changes in Net Position 2 130
Fund Balances of Governmental Funds 3 132
Changes in Fund Balances of Governmental Funds 4 134
Governmental Activities Tax Revenues by Source 5 137
Assessed Value and Estimated Actual Value of Taxable Property 6 138
Property Tax Rates—Direct and Overlapping Governments 7 140
Principal Property Taxpayers 8 142
Property Tax Levies and Collections 9 143
Ratios of Outstanding Debt by Type 10 144
Ratios of Net General Bonded Debt Outstanding 11 145
Direct and Overlapping Governmental Activities Debt 12 147
Legal Debt Margin Information 13 148
Demographic and Economic Statistics 14 150
City of Ham Lake
Table of Contents
Statistical Section (Continued) Table Page
Principal Employers 15 151
Full-time Equivalent City Employees by Function/Program 16 153
Operating Indicators by Function/Program 17 154
Capital Assets by Function/Program 18 156
INTRODUCTORY SECTION
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C ITY O F LAKE
15544 Central Avenue NE
�-��,,»-+;�_ � � Ham Lake, Minnesota 55304
�''��A (763) 434-9555
�- Fax: (763) 434-9599
June 7, 2023
To the Honorable Mayor, City Council Members, and Citizens of the City of Ham Lake:
Minnesota statutes require that each city issue an annual report on its financial position and activity
prepared in accordance with generally accepted accounting principles (GAAP). Pursuant to that
requirement, we hereby issue the Annual Comprehensive Financial Report for the City of Ham Lake for
the fiscal year ended December 31, 2022.
Management assumes full responsibility for the completeness and reliability of the information presented
in this report, based upon a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the financial statements in conformity with generally accepted accounting principles
(GAAP). Because the costs of internal controls should not outweigh their benefits, the City's internal
controls have been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Ham Lake's financial statements have been audited by Bergan KDV, a firm of licensed
Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the City of Ham Lake for the fiscal year ended December 31, 2022, are free of
material misstatement. The independent audit involved examining on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was reasonable basis for issuing an
unmodified opinion that the City of Ham Lake's financial statements for the year ended December 31,
2022, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the
first component of the financial section of this report.
The Management's Discussion and Analysis (MD&A) immediately follows the auditor's report. It
provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A is
designed to complement this letter of transmittal and should be read in conjunction with it.
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Profile of the Government
The City of Ham Lake was incorporated in 1973 and operates as a home-rule charter city. The City Charter
was adopted in 1982. The form of government established by the City Charter is the Mayor-Council Plan.
All powers of the City are vested in the Council, except as otherwise provided by law or the charter. The
Council is composed of a Mayor and four Council Members who are elected at large and have a term of
four years.
The City provides basic governmental services to its residents and businesses, including public safety,
construction and maintenance of local streets, neighborhood parks and trails, and general administrative
services. Police protection is provided through a contract with the Anoka County Sherif£ Fire protection
is provided by a paid-on-call fire department,with a full-time Fire Chief,operating out of two fire stations.
The City does not provide municipal water and sewer services.
The annual budget serves as the foundation for the City of Ham Lake's financial planning and control. The
Administrator and Finance Director work with department heads to develop a proposed budget, which
they present to the City Council. The City Council holds budget meetings and adopts a proposed budget
in September. Budget discussions continue, a public hearing is held in early December, the final property
tax levy is certified, and the Council adopts a final budget no later than December 31, the close of the
City's fiscal year. Any variations from the adopted budget require approval of the Council.
Local Economy
The City of Ham Lake is located in Anoka County, approximately 20 miles north of Minneapolis and St.
Paul. The City of Ham Lake occupies approximately 36 square miles. Ham Lake has an estimated
population of 16,489 with 5,748 households.
The major transportation route is Trunk Highway 65, a four-lane highway which runs north and south
through the City. Three major county roads serve as minor arterials, bringing traffic from the east and the
west to Highway 65. The majority of the City's commercial development lies along the Highway 65
corridor. The City is a member of the North Trunk Highway 65 Corridar Coalition. The mission of the
coalition is to enhance safety and manage congestion to support economic development along the North
TH 65 interregional corridor.
The City's economy remained strong in 2022, as evidenced by continued development and building
activity. The City issued 63 new home permits with valuations totaling$17,306,988 and 2 new commercial
building permit with valuation totaling $1,570,000.
Residents of Ham Lake are not dependent upon any major local employers due to the City's proximity to
Minneapolis and St. Paul and the greater metropolitan area. The unemployment rate for Anoka County
was 3.0 percent at the end of 2022, compared to 2.9 percent for the State of Minnesota and 3.5 percent for
the United States.
Long-Term Financial Planning
The City has a 5-year capital improvement plan which is updated annually. It is used to plan financially
for future replacement of capital assets. The City transfers cash from the General Fund to the capital
equipment funds each year so that sufficient funds are available to replace vehicles and most other capital
assets without issuing debt.The City also has a pavement management plan which is reviewed and updated
at least annually. It is used to plan financially for future street improvement projects and overlays. The
City has a policy of levying for street overlays and reconstructions,thereby eliminating the need for special
assessments and bonding to fund street projects. There has been a couple of
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Long-Term Financial Planning (Continued)
The City owes $730,000 on a general obligation capital improvement bond which was issued in 2010 for
the purpose of constructing additions to Fire Station 1 and the Public Warks Building. The City owes
$59,348 to the City of Circle Pines for a general obligation capital note which was issued in 2016 for the
purpose of financing the acquisition of capital equipment by the North Metro Telecommunications
Commission. Repayment of this note is being made from franchise fees received from Narth Metro
Telecommunications Commission. The City has no plans at this time for issuing additional debt.
The City's finances were last reviewed by Moody's Investor Service in 2017, and the City's bond rating
was upgraded from Aa2 to Aal. According to the press release,the rating reflects "a very healthy financial
position as indicated by current fund balance and liquidity,as well as a recent operating trend that positions
the city for ongoing fiscal stability. The rating also recognizes the city's low debt and pension burdens."
For more information on the City's long-term debt, please see Note 5 of the Notes to the Financial
Statements.
Relevant Financial Policies
The City has a fund balance policy which states that the City will strive to maintain an unassigned general
fund balance in the range of 35 to 50 percent of the next year's budgeted expenditures, including transfers.
This will assist in maintaining an adequate level of fund balance to provide for cash flow requirements
until the next property tax settlement is received in June of the following year. The unassigned fund
balance for the General Fund at the end of 2022 was $4,061,773, which equals 58.53 percent of the
budgeted 2022 General Fund expenditures, including transfers.
The City has an investment policy which establishes the objectives and specific guidelines that are used
in the investment of City funds. Safety of principal is the foremost objective of the investment policy. The
other objectives are liquidity to meet operating requirements, obtaining a reasonable rate of return, and
investing for the betterment of the local economy or local entities when possible. The investment policy
states that the City will only invest in federal securities, bonds and notes issued by U.S. Government
instrumentalities, certificates of deposit which are FDIC insured or otherwise collateralized by the
investment institution,money market funds and government investment pools whose portfolios consist of
investments allowed by Minnesota statute, and interest bearing checking and savings accounts. The
investment policy also addresses internal control and reporting requirements.
The City subscribes to the "pooled cash" concept of investing, which means that all funds with cash
balances participate in an investment pool. This pooled cash concept provides for investing greater
amounts at more favorable rates. Interest earnings are then allocated monthly to the participating funds.
For further information on the City's deposits and investments, please see Note 2 of the Notes to the
Financial Statements.
The City has a policy on securities for performance and maintenance obligations. The only acceptable
forms of securities are cash deposits and letters of credit. The policy addresses how the City shall handle
cash deposits and requires that City staff use a rating system to investigate the financial condition of any
institution that issues a letter of credit,prior to acceptance of the letter of credit and prior to any renewals.
The City has a policy on fixed assets with a $5,000 threshold for capitalizing assets.
The City has an internal control policy. The small size of City staff makes it difficult to maintain complete
segregation of duties, so the policy contains compensating procedures to minimize the City's exposure to
loss of assets from theft or misuse.
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Relevant Financial Policies (Continued)
The City adopted Technology Use and Access Policies in 2016 for the purpose of maintaining security of
the City's information technology network.
The City also has policies for purchasing, use of credit cards, write-off of accounts receivable, travel by
elected officials and employees, payment for professional dues and memberships, and attendance at
seminars and conferences. The purpose of these policies is to ensure that the City operates within legal
limits for expenditure of public funds.
2022 Accomplishments
• Administered a Small Business/Non-Profit grant program with American Rescue Plan Act funding
• Found efficient ways to send American Rescue Plan Act Funding by purchasing Public Works and
Fire Equipment.
• Replaced electronic city sign
• Completed the Lund's Lakeview Forest Street Project
• Purchased a new Plow Truck for Public Works
• Upgraded Fire Station#1 AV Equipment
• Remodel of Public Works breakroom and common space
Future plans
• Continue to come up with the most efficient way to send American Rescue Plan Act Funding
• Build and equip Fire Station#3
• Replace roof on City Hall and Fire Station 2
• Repair and upgrade sirens
• Replace several Public Works vehicles and various equipment
• Recodify City Code and improve online services
• Complete the online permitting project
• Continue overlay of City streets per the City's road rehabilitation plan
• Upgrade Path on Lexington Ave at Broadway
• Continue working with Anoka County and the Minnesota Department of Transportation to
improve safety and traffic congestion issues along Highway 65, including construction of frontage
roads.
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 Ham Lake for its annual
comprehensive financial report for the fiscal year ended December 31, 2022. This was the fourteenth
consecutive year that the City has received this award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report continues to meet the Certificate of Achievement Program's requirements
and we are submitting it to GFOA to determine its eligibility for another certificate.
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Awards and Acknowledgements (Continued)
City management would like to express our appreciation to City Staff for their dedicated service and
support throughout the year as well as to thank the Mayor and City Council for their continued interest
and support in planning and conducting the financial operations of the City in a fiscally responsible
manner.
Respectfully submitted,
.�9h;��s.� i��;����
Andrea Murff
Finance/HR Director
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City of Ham Lake
Elected Officials and Administration
December 31, 2022
Elected Officials Position Term Expires
Brian Kirkham Acting Mayor December 31, 2022
Jim Doyle Council Member December 31, 2022
Al Parranto Council Member December 31, 2022
Gary Kirkeide Council Member December 31, 2024
Jesse Wilken Council Member December 31, 2024
Administration
Denise Webster City Administrator Appointed
Dawnette Shimek City Clerk Appointed
Andrea Murff Finance Director/HR Director Appointed
Michael Raczkowski Fire Chief Appointed
John Witkowski Public Works Superintendent Appointed
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CITY OF HAM LAKE, MINNESOTA
ORGANIZATIONAL CHART
December 31, 2022
Citizeus
Planning
Cominission
Cih-Cottncil
Ch.v�ter
Commission
Cit�•�dministrator
Police Protecdon Legal Eugn�eeriuz
Fivance HR Director Fu e Chief Depnn�Clerk
Pubtic R�or6-s Snperinteudent
Streets wd Parl.z Snpenisor
�ccoundu�TecLnician Paid ov-caII Firefigliters .�dininish�atn e_�z;i;tant Building Of5cial
Streets S Parks (11.3 FTE)
�iaintenance R'orkers �dminisn atice�zzistant Buildiuz Inzpector('_)
C�Iechanic(5) (0.'•FI'E)
Building'Zouing,Clerk
Seazoual\��orl:ei•s aud
On-call Suo�plon�Operatm s .�dmu�sn atn-e?�ssistant
9
City of Ham Lake
Certificate of Achievement for Excellence in Financial Reporting
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10
FINANCIAL SECTION
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� ' � . 1
Independent Auditor's Report
Honorable Mayor and Members
of the City Council
City of Ham Lake
Ham Lake, Minnesota
Reqort on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the City of Ham Lake, Minnesota, as of and for the year ended
December 31, 2022, and the related notes to the financial statements, which collectively comprise the
City of Ham Lake'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, each major fund, and the aggregate
remaining fund information of the City of Ham Lake, Minnesota, as of December 31, 2022, and the
respective changes in financial position and the budgetary comparison for the General Fund for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America(GAAS). Our responsibilities under those standards are further described in the Auditar's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the City of Ham Lake and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter—Implementation of GASB 87
The City has adopted new accounting guidance, Governmental Accounting Standards Board(GASB)
Statement No. 87,Leases. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
The City of Ham Lake'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 Ham Lake'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 � DO MORE. 13
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 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, 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 Ham Lake'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 Ham Lake'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. � BERGANKDV.COM � DO MORE. 14
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Ham Lake's basic financial statements. The accompanying
supplementary information identified in the Table of Contents is 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 accompanying supplementary
information is 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.
���-K��. �•
Minneapolis, Minnesota
June 7, 2023
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City of Ham Lake
Management's Discussion and Analysis
As management of the City of Ham Lake, Minnesota, (the City), we offer readers of the City's financial
statements this narrative overview and analysis of the financial activities of the City for the fiscal year
ended December 31, 2022.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $81,670,503 (net position). Of
this amount, $ 9,672,617 (unrestricted net position) may be used to meet the City's ongoing
obligations to citizens and creditors.
• The City's total net position increased by $8,972,264 as a result of revenues in excess of
expenses.
• As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of$10,514,325 an increase of$1,443,175 in comparison with the prior
year. Approximately 13.7 percent of this total amount, $1,641,322, is either nonspendable or
restricted for specific purposes. The remaining fund balance was committed by City Council,
assigned or unassigned.
• At the end of the current fiscal year, unrestricted fund balance for the General fund was
$4,061,773 or 80.2 percent of 2022 General fund expenditures and 75.2 percent of the 2023
General fund budget.
• The City's total long-term debt decreased $198,600 during the current fiscal year. The key factor
of this decrease was due to regularly scheduled principal payments.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplemental information in addition to the basic financial statements themselves.
The following chart shows how the various parts of this annual report are arranged and related to one
another:
The financial statements also include notes that explain some of the information in the financial
statements and provide more detailed data. The statements are followed by a section of combining and
individual fund financial statements and schedules that further explains and supports the information in
the financial statements. Figure 1 shows how the required parts of this annual report are arranged and
relate to one another. In addition to these required elements, we have included a section with combining
and individual fund financial statements and schedules that provide details about nonmajor
governmental funds, which are added together and presented in single columns in the basic financial
statements.
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City of Ham Lake
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Figure 1
Required Components of the
City's Annual Financial Report
.............................
h�lanagemenYs Basic Required
Discussion and Financial Supplementary
Analysis Statements Information
Govemment- Fund Notes to the
wide Financial Ffnancial Financial
Statements Statements Statements
Summary Detail
Figure 2 summarizes the major features of the City's financial statements, including the portion of the
City government they cover and the types of information they contain. The remainder of this overview
section of management's discussion and analysis explains the structure and contents of each of the
statements.
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City of Ham Lake
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Figure 2
Major Features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide Statements Governmental Funds
Scope Entire City government and the The activities of the City, such as
Cit 's com onent units olice, fire, and arks
Required financial • Statement of Net Position • Balance Sheet
statements • Statement of Activities • Statement of Revenues,
Expenditures, and Changes in
Fund Balances
Accounting basis and Accrual accounting and economic Modified accrual accounting and
measurement focus resources focus current financial resources focus
Type of asset/liability All assets and liabilities,both Only assets expected to be used up
information financial and capital, and short- and liabilities that come due during
term and long-term the year or soon thereafter; no
ca ital assets included
Type of deferred All deferred outflows/inflows of Only deferred outflows of
outflows/inflows of resources, regardless of when resources expected to be used up
resources information cash is received or paid and deferred inflows or resources
that come due during the year or
soon thereafter; no capital assets
included
Type of inflow/out flow All revenues and expenses during Revenues for which cash is
information year,regardless of when cash is received during or soon after the
received or paid end of the year; expenditures when
goods or services have been
received and payment is due during
the ear or soon thereafter
Government-wide Financial Statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private-sector
business.
Government-wide Financial Statements. The Statement of Net Position presents information on all of
the City's assets and deferred outflows of resources and liabilities and deferred inflows of resources,
with the difference reported as net position. Over time, increases or decreases in net position may serve
as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement ofActivities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus,revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
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City of Ham Lake
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government-wide Financial Statements. (Continued) Both of the government-wide financial
statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenue (governmental activities). The governmental activities of the City include
general government, public safety, public works, culture and recreation, economic development, and
interest on long-term debt.
The government-wide financial statements include not only the City itself(known as the primary
government), but also a legally separate Economic Development Authority (EDA) for which the City is
financially accountable. Financial information for this component unit is not reported separately from
the financial information presented for the primary government itself.
The government-wide financial statements start on page 33 of this report.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local government, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City can are shown as one category: governmental funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact by the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances (deficits)provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains 16 individual governmental funds. The Debt Service funds consists of 2 sub-funds,
there is 3 Capital Project funds, and there are 9 Special Revenue funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General fund, Developer Escrow Deposits,
Equipment and Building fund, and Revolving Street fund. Data from the other governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements o�schedules elsewhere in this
report.
20
City of Ham Lake
Management's Discussion and Analysis
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
The City adopts an annual appropriated budget for the General fund. Budgetary comparison statements
have been provided for the General fund to demonstrate compliance with their budget.
The basic governmental fund financial statements start on page 33 of this report.
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
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.
Other Information. In addition to the basic financial statements and accompanying notes, this report
also presents required supplementary information concerning the City's progress in funding its
obligation to provide pension benefits to its employees. Required supplementary information can be
found on page 80 of this report.
The combining statements referred to earlier in connection with nonmajor governmental funds are
presented following the notes to the fmancial statements. Combining and individual fund financial
statements and schedules start on page 98 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicatar of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $81,670,503 at the close of the most recent fiscal year.
By far, the largest portion of the City's net position (86.3 percent)reflects its investment in capital assets
(e.g., land,buildings, machinery, and equipment), less any related debt used to acquire those assets that
are still outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City's investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
An additional portion of the City's net position, ($1,541,736)represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position
($9,672,617) may be used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all categories of net
position.
21
City of Ham Lake
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
City of Ham Lake's Summary of Net Position
Governmental Activities
Increase
2022 2021 (Decrease)
Assets
Current and
other assets $ 17,598,550 $ 14,263,144 $ 3,335,406
Capital Assets 71,245,498 63,785,095 7,460,403
Total Assets 88,844,048 78,048,239 10,795,809
Deferred Outflows of Resources
Deferred outflows of resources
related to pension 859,519 731,917 127,602
Liabilities
Long-term liabilities
outstanding 2,501,646 1,467,288 1,034,358
Other liabilities 2,739,132 2,465,000 274,132
Total Liabilities 5,240,778 3,932,288 1,308,490
Deferred Inflows of Resources
Deferred inflows of resources
related to pensions 371,213 1,041,132 (669,919)
Deferred inflows of resources
related to lease receivable 2,161,217 - 2,161,217
Deferred inflows of resources
related to grants 259,856 1,108,497 (848,641)
Total Deferred Inflows of Resources 2,792,286 2,149,629 642,657
Net Position
Net investment in
capital Assets 70,456,150 62,797,147 7,659,003
Restricted for
Debt Service 280,231 264,470 15,761
Capital Projects 1,042,357 1,011,834 30,523
Lawful Gambling 146,475 119,078 27,397
Recycling Program 72,673 70,940 1,733
Unrestricted 9,672,617 8,434,770 1,237,847
Total Net Position $ 81,670,503 $ 72,698,239 $ 8,972,264
22
City of Ham Lake
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities. Governmental activities increased the City's net position by $8,972,264. Key
elements of this increase are as follows:
City of Ham Lake's Changes in Net Position
Governmental Activities
Increase
2022 2021 (Decrease)
Revenues
Program Revenues
Charges for services $ 1,064,196 $ 1,060,057 $ 4,139
Operating Grants
and contributions 351,216 363,997 (12,781)
Capital grants
and contributions 8,881,320 6,801,898 2,079,422
General Revenues
Taxes
Property Taxes 5,696,533 5,228,297 468,236
Miscellaneous Taxes 89,589 91,554 (1,965)
Intergovernmental Revenues Not
Restricted to Specific Programs 390,534 2,130 388,404
Interest and investment
income 37,804 (3,841) 41,645
Other general revenue 10,996 7,293 3,703
Gain on sale of capital assets 185 83,182 (82,997)
Total Revenues 16,522,373 13,634,567 2,887,806
Expenses
General government 1,739,042 1,129,663 609,379
Public Safety 2,460,873 2,228,626 232,247
Public works 2,861,565 2,149,396 712,169
Culture and recreation 356,448 382,414 (25,966)
Economic development 103,930 70,709 33,221
Interest and fiscal charges 28,251 34,915 (6,664)
Total Expenses 7,550,109 5,995,723 1,554,386
Change in Net Position 8,972,264 7,638,844 1,333,420
Net Position, January 1 72,698,239 65,059,395 7,638,844
Net Position, December 31 $ 81,670,503 $ 72,698,239 $ 8,972,264
23
City of Ham Lake
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
Government-wide revenues increased $2,887,806 from the prior year. The major components of this
increase are as follows: Capital grants and contributions increased due to increases in the amount of
donations received from developers of streets, easements, and street lights for new developments and
state aid received for street projects. Property tax revenue increased due to an increase of 7.64 percent in
the tax levy for the year. This increase was offset by an increase 9.6 percent increase in Tax Capacity
causing the capacity tax rate to decrease 0.5 percent for 2022. Unrestricted Intergovernmental revenues
increased due to the use of American Rescue Plan Act funds for various equipment and a small-
business/nonprofit grant program.
Revenues by Source - Governmental Activities
Intergovernmental
Revenues
2.36% Property Taxes
34.48%
�
Capital Grants&
Contributions Other Taxes
53.75% 0.54%
.� �ther General
� �R Revenue
� 0.07%
Interest&
Investment Income
Operating Grants 0.23%
&Contributions Gain on Sales of Charges for
2.13% Capital Assets Services
�.�nr
6.44%
Government-wide expenses increased$1,554,386 from the prior year. The major components of this
increase are as follows: Overall, all the functions of government saw an increase in their net pension
liability as well as depreciation eXpense. Individually, Public Works expenses increased due to the
completion of Lund's Lakeview street project and the purchase of a Snow Plow Truck, General
Government expenses increased due to American Rescue Plan Act spending and the purchase of a new
City sign, and Public Safety increased due to the increase in the Anoka county Police contract.
24
City of Ham Lake
Management's Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
The following graph depicts various governmental activities and shows the program revenues and
expenses directly related to those activities.
Expenses and Program Revenues - Governmental Activities
s,000,000
4,000,000
3,000,000
2,000,000
1,000,000 ,
� �
� � �
General Public Safety Public works Culture and Economic Interest and fiscal
government recreation development charges
■Program Expenses �Program Revenues
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. In particular, unassigned fund balance may serve as a useful measure of a
government's net resources available for spending at the end of the year.
Governmental Funds. As of the end of the current fiscal year, the City's governmental funds reported
combined ending fund balances of$10,514,325, an increase of$1,443,175 in comparison with the priar
year. Approximately 37.8 percent of this total amount, $ 3,972,866, constitutes unassigned fund balance,
which is available for spending at the City's discretion. The remainder of fund balance is not available
for new spending because it is either 1) nonspendable ($88,907), 2) restricted ($1,552,415), 3)
committed($588,625) ar 4) assigned($4,311,512) for specific purposes.
The General fund had a total fund balance of$4,061,773 at the current year end. The fund balance of the
City's General fund increased $406,468 during the current fiscal year. See the below "General Fund
Budgetary Highlights" for more detail information.
The Developer Escrow Deposits fund has a fund balance of$0.00 since this account only holds deposits
from developers and other planning permitting activity.
25
City of Ham Lake
Management's Discussion and Analysis
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED)
The Equipment and Building fund has a fund balance of$2,572,904, all of which is assigned for future
capital acquisition and construction of municipal buildings and equipment. The fund balance increased
$370,612 during the current fiscal year due to the budgeted transfers from the general fund exceeding
capital outlay expenditures.
The Revolving Street fund has a fund balance of$1,738,608, all of which is assigned for road overlays
and reconstruction. The fund balance increased $809,061 during the current fiscal year due to the
budgeted transfers from the general fund exceeding capital outlay expenditures.
General Fund Budgetary Highlights
Actual revenues favorably exceeded budget expectations by $559,286. Expenditures unfavorably ended
the year $153,003 over budget, along with transfers and other financing sources. Overall, this resulted an
increase in fund balance of$406,468. Below is more detail on the different variances.
Revenue highlights include:
• Intergovernmental funding was $427,748 in excess of the budget due to being able to recognize
American Recovery Plan Act grant proceeds as revenue with qualifying expenditures for the year
and more than anticipated State Aid for Fire Department training and Fire Relief pension.
• Charges for Services was $80,983 in excess of the budget due to implementing GASB 87
resulting in recognizing Tower Lease interest and the additional subletting contracts through our
SBA tower lease contracts.
• Other revenues ended over budget by $40,198 due to receiving unbudgeted dividend from the
League of Minnesota Cities Insurance Trust and reimbursement for the completion of the 2040
Comprehensive Plan from the Metropolitan Council.
• Investment income came in $28,664 over budget. The City budgeted conservative in 2022 due to
losses in previous years from the market value of certificates of deposit deteriorating, however,
these losses were reversed once the Federal Reserve started to increase interest rates in 2022.
• Licenses and permits were $21,967 in excess of budget mainly due to more Right of Way
permits being issued and more Plan Reviews on plans needed to be done. However, overall
building permits and other constructions permits were close to budget values and did not add to
the favorable variance.
• General property taxes were $42,330 below budget due to the receiving less than levied for 2022.
Expenditure highlights include:
• General Government was over budget $390,422. This is mainly due to American Rescue Plan
Act grant spending for a small business/non-profit grant program, Fire Department radios and
equipment, and Public Work equipment not being budgeted expenditures. The use of these funds
are approved separately by City Council.
• Public Safety was under budget $69,451 due to budgeting for a Full-time investigator for the full
year with the Anoka County Sheriff office,but the actual Investigator not starting until July as
well as a second Building Inspector resigning in August and the position not being filled due to
the change in seasonal demand for Building Permits.
26
City of Ham Lake
Management's Discussion and Analysis
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
General Fund Budgetary Highlights (Continued)
• Public works was under budget $48,164 due to 2022 Seal Coating project coming less than
anticipated and not using appropriated funds for emergency capital asset spending.
• Parks and recreation was under budget $119,804 for two reasons:
o Full-time employees dedicated to the Parks Department and budgeted here. However, the
employees actual work tasks are for Public Works duties and charged to this department.
o There was no need for appropriated funds for emergency capital asset spending.
Overall, the General Fund saw a decrease in its fund balance. This was driven by transfers out to other
funds of$1,346,500. The excess revenue and conservative spending helped offset these transfers.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City's investment in capital assets for its governmental activities as of
December 31, 2022, amounts to $71,245,498 (net of accumulated depreciation).
Major public project capital asset events during the current fiscal year were as follows:
• Completion of the Lund's Lakeview Forest Street project
• Donation of Streets for new developments
• Donation of Street Lights for new developments
• Street and Utility easement acquisitions
• Purchase of land for Hidden Forest East Park
• Installation of Park Equipment at Lion's Park
• Donation of Parkland for Hidden Forest East Park
• Purchase of a Garbage Lifter and Plow Truck for Public Works
• New City Sign installation
• Purchase of new Fire equipment
Additional information on the City's capital assets can be found in Note 3 starting on page 58 of this
report.
27
City of Ham Lake
Management's Discussion and Analysis
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Capital Assets. (Continued)
City of Ham Lake's Capital Assets
(Net of Depreciation)
Governmental Activities
Increase
2022 2021 (Decrease)
Land $ 25,211,103 $ 21,471,088 $ 3,740,015
Construction in Progress 2,270,846 2,802,900 (532,054)
Buildings and improvements 3,562,827 3,689,622 (126,795)
Machinery and equipment 2,492,554 2,289,601 202,953
Improvements other then buildings 1,229,755 1,295,948 (66,193)
Infrastructure 36,478,413 32,235,936 4,242,477
Total $ 71,245,498 $ 63,785,095 $ 7,460,403
Infrastructure La nd
51% 35%
�
� ,
,
�
� :onstruction in
�i
i �J Progress
� 3%
,�i Buildings and
improvements
Improvements � and
other then nent
_�,...r..
buildings „o,
28
City of Ham Lake
Management's Discussion and Analysis
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding of
$730,000. While all of the City's bonds have revenue streams, they are all backed by the full faith and
credit of the City. The City also had a capital notes outstanding at the end of the current fiscal year of
$87,948.
City of Ham Lake's Outstanding Debt
Governmental Activities
Increase
2022 2021 (Decrease)
General Obligation Improvement Bonds $ 730,000 $ 900,000 $ (170,000)
Capital Notes 59,348 87,948 (28,600)
Total $ 789,348 $ 987,948 $ (198,600)
.. . . -
• . •. .
. . -
:. .
The City's total debt decreased $198,600 during the current fiscal year due to annually scheduled debt
payments.
Minnesota statutes limit the amount of net general obligation debt a City may issue to 3 percent of the
market value of taxable property within the City. Net debt is debt payable solely from ad valorem taxes.
The current debt limitation far the City is $69,362,583. The City is under the statutary debt limit as of
December 31, 2022.
Additional information on the City's long-term debt can be found in Note 5 starting on page 43 of this
report.
29
City of Ham Lake
Management's Discussion and Analysis
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• In March 2020, the nation went into a State of Emergency due to the Coronavirus. The Federal
Government has tried to alleviate some of the issues of economic contraction and hardships the
caused by the virus by developing various stimulus packages. The latest funding is from the
American Rescue Plan Act. The City has received all of$1.8 million funding. The funds need to
be obligated by 2024 and expended by 2026. The City currently has spent $159,577 on a grant
program for small businesses and non-profits and $447,384 on various Fire and Public Works
equipment. There is $48,191 obligated for additional Fire and Public Works Equipment. There is
$1.1M earmarked for a street project and is still subject to full Council Approval. There is
approximately $91,568 remaining
• The City's Tax Levy increased 11.49% to $619,590 in 2023. However, due to a higher tax
capacity due to more development the tax capacity rate decreased 1.99 percent to 19.50 percent.
• The City is slated to receive $721,500 in Public Safety Aid in 2024.
• In 2022 the Federal Reserve started to increase interest rates to combat high inflation causing
investment income to increase beyond expectations for 2022 and thus far for 2023. These
fluctuations will be carefully monitored over 2023.
• The City will be starting construction on Fire Station#3 the summer of 2023 and will be
considering ways to equip it with needed equipment and Fire Fighters.
All of these factors were considered in the preparation of the City's budget for the 2024 year.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with
an interest in the City's finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the City of Ham Lake, Finance
Department, 15544 Central Avenue NE, Ham Lake, Minnesota 55304.
30
BASIC FINANCIAL STATEMENTS
31
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32
City of Ham Lake
Statement of Net Position
December 3l,2022
Governmental
Activities
Assets
Cash and investments $ 13,074,949
Receivables
Accounts receivable 72,310
Accrued interest receivable 102,319
Lease receivable 2,161,217
Taxes receivable 267,763
Special assessments receivable 950,394
Due from other governments 78,386
Prepaid items 88,907
Net pension asset-Fire Relief Association 802,305
Capital assets not being depreciated
Land 25,211,103
Construction in progress 2,270,846
Capital assets net of accumulated depreciation
Buildings 3,562,827
Improvements other than buildings 1,229,755
Infrastructure 36,478,413
Machinery and equipment 2,492,554
Total assets 88,844,048
Deferred outflows of resources related to pensions
Deferred outflows of resources related to pensions 859,519
Total assets and deferred outflows of resources S 89,703,567
Liabilities
Salaries and benefits payable $ 43,097
Accounts payable 380,751
Accrued interest payable 10,679
Due to other governments 158,373
Deposits payable 678,589
Unearned revenue 1,467,643
Bond principal payable
Payable within one year 204,334
Payable after one year 585,014
Compensated absences payablc
Payable within one year 71,215
Payable after one year 23,748
Net pension liability-payable after one year 1,617,335
Total liabilities 5,240,778
Deferred inflows of resources related to pensions
Deferred inflows of resources related to pensions 371,213
Deferred inflows related to leases 2,161,217
Grants received for subsequent years 259,856
Total defened inflows of resources 2,792,286
Net Position
Net investment in capital assets 70,456,150
Restricted for
Debt service 280,231
Capital projects 1,042,357
Lawful gambling 146,475
Recycling program 72,673
Unrestricted 9,672,617
Total net position 81,670,503
Total liabilities,dcfcrred inflows of resources,and net position $ 89,703,567
See notes to basic financial statements. 33
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34
City of Ham Lake
Statement of Activities
Year Ended December 31,2022
Net(Expense)
Revenuesand
Changes in Net
Program Services Position
Operating Capital Grants
Charges for Grants and and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Governmental activities
General government $ 1,739,042 $ 384,465 $ 80,845 $ - $ (1,273,732)
Public safery 2,460,873 569,768 139,032 - (1,752,073)
Public works 2,861,565 106,238 131,339 8,046,269 5,422,281
Community development 103,930 - - - (103,930)
Parks and recrearion 356,448 3,725 - 835,051 482,328
Interest on long-term debt 28,251 - - - (28,251)
Total governmental activities $ 7,550,109 $ 1,064,196 $ 351,216 $ 8,881,320 2,746,623
General revenues
Taxes
Property taxes,levied for general purposes 5,487,117
Property taxes,levied for debt service 209,416
Franchise taxes 59,846
Lodging taxes 29,743
State and federal aid not restricted to specific programs 390,534
Unrestricted investment earnings 37,804
Other general revenue 10,996
Gain on disposal of assets 185
Total general revenues 6,225,641
Change in net position 8,972,264
Net posirion-beginning 72,698,239
Net position-ending $ 81,670,503
See notes to basic financial statements. 35
City of Ham Lake
Balance Sheet-Governmental Funds
December 31,2022
Developer
Escrow Equipment and Revolving
General Fund Deposits Building Street
Assets
Cash and investments $ 5,563,760 $ 681,901 $ 2,573,915 $ 2,118,268
Accounts receivable 6,580 - - 6,680
Lease receivable 2,161,217 - - -
Accrued interest receivable 82,154 - 7,598 6,247
Taxesreceivable 267,763 - - -
Special assessments receivable - - - 884,482
Due from other governments 1,946 - - -
Prepaid items 88,907 - - -
Total assets $ 8,172,327 $ 681,901 $ 2,581,513 $ 3,015,677
Liabilities
Salaries and benefits payable $ 43,097 $ - $ - $ -
Accounts payable 132,254 3,129 8,286 134,947
Due to other governments 157,866 184 323 -
Deposits payable 1 678,588 - -
Unearned revenue 1,462,243 - - -
Total liabilities 1,795,461 681,901 8,609 134,947
Deferred Inflows of Resources
Unavailable revenue-taxes 153,876 - - -
Unavailable revenue-special assessments - - - 882,266
Unavailable revenue-other - - - 259,856
Deferred inflows related to leases 2,161,217 - - -
Total deferred inflows of resources 2,315,093 - - 1,142,122
Fund Balances
Nonspendable 88,907 - - -
Restricted - - - -
Committed - - - -
Assigned - - 2,572,904 1,738,608
Unassigned 3,972,866 - -
Total fund balances 4,061,773 - 2,572,904 1,738,608
Total liabilities,deferred inflows of resources,
and fund balances $ 8,172,327 $ 681,901 $ 2,581,513 $ 3,015,677
See notes to basic financial statements. 36
Other Total
Governmental Governmental
Funds Funds
$ 2,137,105 $ 13,074,949
59,050 72,310
- 2,161,217
6,320 102,319
- 267,763
65,912 950,394
76,440 78,386
- 88,907
$ 2,344,827 $ 16,796,245
$ - $ 43,097
102,135 380,751
- 158,373
- 678,589
5,400 1,467,643
107,535 2,728,453
- 153,876
64,912 947,178
31,340 291,196
- 2,161,217
96,252 3,553,467
- 88,907
1,552,415 1,552,415
588,625 588,625
- 4,311,512
- 3,972,866
2,141,040 10,514,325
$ 2,344,827 $ 16,796,245
37
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38
City of Ham Lake
Reconciliation of the Balance Sheet to
the Statement of Net Position-Governmental Funds
December 31,2022
Total fund balances-governmental funds $ 10,514,325
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 88,745,027
Less accumulated depreciation (17,499,529)
Long-term liabilities are not due and payable in the current period and,therefore,are not reported
as liabilities in the funds. Long-term liabilities at year-end consist of:
Bonds and notes payable (789,348)
Compensated absences payable (94,963)
Net pension liabiliry (1,617,335)
Net pension assets created through non-employer contributions to defined benefit pension plans
are not recognized in the governmental funds. 802,305
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 thegovernmental funds.
Deferred outflows of resources related to pensions 859,519
Deferred inflows of resources related to pensions (371,213)
Delinquent receivables will be collected in subsequent years,but are not available soon enough to
pay for the current period's expenditures and,therefore,are deferred in the funds.
Properry taxes 153,876
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds.
Special assessments receivable 947,178
Park dedication receivable 31,340
Governmental funds do not report a liability for accrued interest due and payable. (]0,679)
Total net position-governmental activities $ 81,670,503
See notes to basic financial statements. 39
City of Ham Lake
Statement of Revenues,Expenditures,and
Changes in Fund Balances-Governmental Funds
Year Ended December 31,2022
Developer
Escrow Equipment and Revolving
General Fund Deposits Building Street
Revenues
Properry taxes $ 5,376,363 $ - $ - $ -
Miscellaneous taxes - - - -
Special assessments - - - 72,240
Licenses and permits 570,567 - - -
Intergovernmental 578,748 - - 1,160,709
Charges for services 223,508 92,446 - -
Fines and forfeitures 32,056 - - -
Investment income 29,664 - 1,518 5,368
Otherrevenues 50,698 - - 4,0]5
Total revenues 6,861,604 92,446 1,518 1,242,332
Expenditures
Current
General government 1,466,709 92,446 - -
Public safety 2,348,949 - 6,120 -
Public works 1,058,131 - - 3,687
Economic development - - - -
Park and recreation 193,133 - - -
Debt service
Principal - - - -
Interest and other charges - - - -
Capital outlay
General government 3,345 - 6,094 -
Public safety 22,587 - 65,192 -
Public warks 4,957 - - 1,329,584
Economic development - - - -
Park and recreation 12,210 - - -
Total expenditures S,ll0,021 92,446 77,406 1,333,271
Excess ofrevenues over(under)expenditures 1,751,583 - (75,888) (90,939)
Other Financing Sources(Uses)
Proceeds from sale of capital assets 185 - - -
Transfers in 1,200 - 446,500 900,000
Transfers out (1,346,500) - - -
Total other financing sources(uses) (1,345,115) - 446,500 900,000
Net change in fund balances 406,468 - 370,612 809,061
Fund Balances
Beginning of year 3,655,305 - 2,202,292 929,547
End ofyear $ 4,061,773 $ - $ 2,572,904 $ ],738,608
See notes to basic financial statements. 40
Other
Governmental
Funds Total
$ 209,416 $ 5,585,779
89,589 89,589
85 72,325
- 570,567
86,174 1,825,631
104,906 420,860
- 32,056
1,254 37,804
112,481 167,194
603,905 8,801,805
31,074 1,590,229
25,000 2,380,069
153,385 1,215,203
35,830 35,830
- 193,133
198,600 198,600
30,615 30,615
186,816 196,255
- 87,779
- 1,334,541
68,100 68,100
16,251 28,461
745,671 7,358,815
(141,766) 1,442,990
- 185
89,000 1,436,700
(90,200) (1,436,700)
(1,200) 185
(142,966) 1,443,175
2,284,006 9,071,150
$ 2,141,040 $ 10,514,325
41
City of Ham Lake
Reconciliation of the Statement of Revenues,
Expenditures,and Changes in Fund Balances to
the Statement of Activities-Governmental Funds
Year Ended December 31,2022
Net change in fund balances-governmental funds $ 1,443,175
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 1,399,963
Depreciation expense (1,634,081)
Loss on disposal (25,618)
Contributed assets 7,720,139
Principal payments on long-term debt are recognized as expenditures in the governmental funds
but have no effect on net position in the Statement of Activities. 198,600
Interest on long-term debt in the Statement of Activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due
and thus requires use of current financial resourccs. In the Statement of Activiries,however,
interest expense is recognized as the interest accrues,regardless of when it is due. 2,364
Compensated absences are recognized when paid in the governmental funds but recognized when
incurred in the Statement of Activities. 4,329
Governmental funds recognized pension contributions as expenditures at the time of payment
whereas the Statement of Activities factors in items related to pensions on a full accrual
perspective.
Pension expense (136,851)
State aid 6,979
Revenues in the Statement of Activities that do not provide current financial resources are not
reported as revenues in the funds.
Special assessments deferred (80,131)
Park dedication (37,358)
Delinquent receivables will be collected in subsequent years,but are not available soon
enough to pay for the current period's expenditures and,therefore,are deferred in the funds.
Property taxes delinquent 110,754
Change in net position-governmental activities $ 8,972,264
See notes to basic financial statements. 42
City of Ham Lake
Statement of Revenues,Expenditures,and
Changes in Fund Balance-
Budget and Actual-General Fund
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Properry taxes $ 5,418,693 $ 5,376,363 $ (42,330)
Licenses and permits 548,600 570,567 21,967
Intergovernmental 151,000 578,748 427,748
Charges for services 142,525 223,508 80,983
Fines and forfeitures 30,000 32,056 2,056
Investment income 1,000 29,664 28,664
Other revenues 10,500 50,698 40,198
Total revenues 6,302,318 6,861,604 559,286
Expenditures
Current
General government 1,068,642 1,466,709 398,067
Public safety 2,393,987 2,348,949 (45,038)
Publicworks 1,088,252 ],058,131 (30,121)
Park and recreation 306,647 193,133 (113,514)
Capital outlay
General government 10,990 3,345 (7,645)
Public safety 47,000 22,587 (24,413)
Public works 23,000 4,957 (18,043)
Park and recreation 18,500 12,210 (6,290)
Total expenditures 4,957,018 5,110,021 153,003
Excess of revenues over
expenditures 1,345,300 1,751,583 406,283
Other Financing Sources(Uses)
Transfers in 1,200 1,200 -
Transfers out (1,346,500) (1,346,500) -
Total other financing sources(uses) (1,345,300) (1,345,115) 185
Net change in fund balance $ - 406,468 $ 406,468
Fund Balance
Beginning of year 3,655,305
End of year $ 4,06],773
See notes to basic financial statements. 43
(THIS PAGE LEFT BLANK INTENTIONALLY)
44
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Ham Lake is a charter city governed by an elected mayor and four City Council members.
The accompanying financial statements present the government entities for which the government is
considered to be financially accountable.
The financial statements present the City and its component units. The City includes all funds,
organizations, institutions, agencies, departments, and offices that are not legally separate from such.
Component units are legally separate organizations for which the elected officials of the City are
financially accountable and are included within the basic financial statements of the City because of the
significance of their operational or financial relationships with the City.
The City is considered financially accountable for a component unit if it appoints a voting majority of
the organization's governing body and it is able to impose its will on the organization by significantly
influencing the programs,projects, activities, or level of services performed or provided by the
organization or there is a potential for the organization to provide specific financial benefits to or impose
specific financial burdens on the City.
As a result of applying the component unit definition criteria above, certain organizations have been
defined and are presented in this report as follows:
Blended Component Units—Reported as if they were part of the City.
Joint Ventures and Jointly Governed Organizations—The relationship of the City with the entity is
disclosed.
For each of the categories above, the specific entities are identified as listed below and on the following
page.
1. Blended Component Unit
The Ham Lake Economic Development Authority(EDA) was organized in 1998 for the purpose of
promoting economic development in the Ham Lake area. The EDA shall consist of five members,
who shall be the incumbent Mayor and four incumbent City Council members of the Ham Lake City
Council. Officers of the EDA shall include an Assistant Treasurer and Secretary, who shall be paid
employees of the City, to be appointed annually by the EDA.
A component unit is a legally separate entity, so there is a basic assumption it should be presented
separately (discretely) from the primary government. However, a blended component unit functions
as an integral part of the primary government and is presented as though it were a fund of the
primary government.
The Ham Lake EDA meets the requirements far a blended component unit because it has a shared
governing body with the primary government. The City also has operational responsibilities of the
EDA. Therefore, it is presented as a governmental fund in the financial statements of the City.
45
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
2. Joint Ventures
The City has agreements with governmental and other entities which provide reduced costs,
better service, and additional benefits to the participants. These programs which the City
participates in are listed as follows:
a. North Metro Telecommunications Commission
In 1983, the City adopted an ordinance establishing a franchise for a cable communications
system. The City and neighboring municipalities formed the North Metro Telecommunications
Commission (the "Commission"). The purpose of this organization is to monitor the operations
and activities of cable communications of the member municipalities. The Commission also
provides coordination, administration, and enforcement of the franchises for the cable
communication system.
The City receives a portion of the franchise fees, which are reported in the Cable Television
Special Revenue Fund. These revenues are committed for cable television related purchases.
Financial statements for the Commission can be obtained by writing to: North Metro
Telecommunications Commission, 12520 Polk Street NE, Blaine, Minnesota 55434.
b. Senior Housing Project
In March 1996, the City entered into a joint powers agreement with the Anoka County Housing
and Redevelopment Authority (HRA) for the construction of a seniar housing facility. The City
was required to purchase two parcels of land and convey title for those parcels to the Anoka
County HRA at the closing of the bond sale. The City also incurred development costs for the
project. The bonds were sold by the Anoka County HRA and backed by the general obligation of
the City. The Anoka County HRA holds title to the land on which the facility is built and shall
not transfer ownership of the land to any other entity except in accordance with the provisions of
a right of first refusal in favor of the City.
Requests for the financial statements of the Anoka County HRA should be addressed to Jerry
Soma, County Administrator, Anoka County, 2100 3rd Avenue, Anoka, Minnesota 55303.
c. Anoka County Fire Protection Council
In December 2014, the City of Ham Lake entered into a joint powers agreement with the Cities
of Anoka, Champlin, Andover, Bethel, Centerville, Lino Lakes, Circle Pines, Coon Rapids,
Columbia Heights, East Bethel, Fridley, Hilltop, LeXington, Nowthen, Oak Grove, Ramsey, St.
Francis, Spring Lake Park, Blaine, Mounds View, and the Township of Linwood to form the
Anoka County Fire Protection Council (ACFPC). The purpose of the ACFPC is to join together
to improve the efficiency and effectiveness of fire and emergency services to the public within
the geographic service area of the Members. Specifically, ACFPC will cooperatively address the
Members' long-term needs for fire-fighting and emergency equipment, fire records data systems,
fire-fighter and EMS training, fire prevention, fire inspection, fire-related public education, and
other fire- and emergency-related essentials.
46
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. Reporting Entity (Continued)
2. Joint Ventures (Continued)
a. Anoka County Fire Protection Council(Continued)
Requests for financial information of the ACFPC should be addressed to Spring Lake Fire Dept.,
Inc., 1710 County Hwy 10, Spring Lake Park, MN 55432.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities)report information on all of the activities of the City. Governmental activities, which
normally are supported by taxes and intergovernmental revenues.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Interest on general long-term debt is considered an indirect expense and is
reported separately in the Statement of Activities. Program revenues include 1) charges to customers or
applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given
function or segment and 2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues. Internally dedicated revenues are
reported as general revenues rather than program revenues.
Separate financial statements are provided for governmental funds. Major individual governmental
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. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
47
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Property taxes, licenses, and interest associated with the current period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current period. Only the portion of
special assessments receivable due within the current period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available
only when cash is received by the City.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal
value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,
revenue is recorded in the year in which the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in
return, include property taxes, grants, entitlement and donations. On an accrual basis, revenue from
property taxes is recognized in the year for which the tax is levied. Revenue from grants, entitlements
and donations is recognized in the year in which all eligibility requirements have been satisfied.
Eligibility requirements include timing requirements, which specify the year when the resources are
required to be used or the year when use is first permitted, matching requirements, in which the City
must provide local resources to be used for a specified purpose, and expenditure requirements, in which
the resources are provided to the City on a reimbursement basis. On a modified accrual basis,revenue
from non-exchange transactions must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been
satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as
unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been
satisfied. Grants and entitlements received before eligibility requirements are met are also recorded as
unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Description of Funds:
Major Governmental Funds:
General Fund—This fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
48
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Description of Funds: (Continued)
Major Governmental Funds: (Continued)
Developer Escrow Deposits Fund—This fund is used to pay development costs incurred by the City
and also to maintain deposits from homeowners pending establishment of turf and paving of
driveways.
Equipment and Building Fund—This fund accounts for the resources accumulated and payments made
for the acquisition and construction of municipal buildings and equipment.
Revolving Street Fund—This fund is a capital project fund which accounts for resources accumulated
and payments made for construction of municipal streets.
As a general rule the effect of interfund activity has been eliminated from government-wide financial
statements.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1. Deposits and Investments
Cash and investments include balances from all funds that are combined and invested to the extent
available in various securities as authorized by state law. Earnings from such investments are
allocated on the basis of applicable participation by each of the funds.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-
term investments with original maturities of three months or less from the date of acquisition.
Minnesota Statutes authorizes the City to invest in obligations of the U.S. Treasury, agencies and
instrumentalities, shares of investment companies whose only investments are in the aforementioned
securities, obligations of the State of Minnesota or its municipalities, bankers' acceptances, future
contracts, repurchase and reverse repurchase agreements, and commercial paper of the highest
quality with a maturity of no longer than 270 days and in the Minnesota Municipal Investment Pool.
Certain investments far the City are reported at fair value as disclosed in Note 4. 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.
49
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
1. Deposits and Investments (Continued)
The City adopted an investment policy to address custodial credit risk, credit risk, concentration of
credit risk, and interest rate risk. The policy states the City will invest in certificates of deposit,
money market funds, interest bearing checking and saving accounts and government bonds, notes,
bills, and mortgages.
In accordance with GASB Statement No. 79, the Minnesota Municipal Investment Pool securities
are valued at amortized cost, which approximates fair value. There are no restrictions or limitations
on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a
minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a
penalty equal to seven days interest on the amount withdrawn. Seven days notice of redemption is
required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date
of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses,
and other costs attributable to the early redemption.
2. Property Taxes
The City Council annually adopts a tax levy in December and certifies it to the County for collection
in the following year. The County is responsible for collecting all property taxes for the City. These
taxes attach an enforceable lien on taxable property within the City on January 1 and are payable by
the property owners in two installments. The taxes are collected by the County Auditor and tax
settlements are made to the City during January, July, and December each year.
Delinquent taxes receivable includes the past six years of uncollected property taxes. Delinquent
taxes have been offset by a deferred inflow of resources far those amounts not received within 60
days of year end.
3. Accounts Receivable
Accounts receivable include amounts billed far services provided before year end. All accounts are
considered collectible at year end. Therefore, there has been no allowance for doubtful accounts
established.
4. Special Assessments
Special Assessments represent the financing for public improvements paid for by benefiting property
owners. These assessments are recorded as receivables upon certification to the County. Special
assessments are recognized as revenue when they are received in cash or within 60 days after year
end. All governmental assessments receivable are offset by a deferred inflow of resources in the fund
financial statements.
50
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
5. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items of the City are
accounted for using the consumption method.
6. Assets Held for Resale
This asset represents an asset owned by the City with the intent to sell. It is recorded at the lessor of
historical cost or net realizable value.
7. Capital Assets
Capital assets, which include properry,plant, equipment, and infrastructure assets (e.g.,roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental columns in the
government-wide financial statements.
Capital assets are defined by the City as assets with an estimated useful life in excess of one year and
with an initial, individual cost of more than $5,000. 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.
As the City constructs or acquires capital assets each period, including infrastructure assets, they are
capitalized and reported at historical cost. The reported value excludes normal maintenance and
repairs which are essentially amounts spent in relation to capital assets that do not increase the
capacity or efficiency of the item or extend its useful life beyond the original estimate.
Property,plant, and equipment of the City are depreciated using the straight-line method over the
estimated usefullives as listed below.
Assets Years
Infrastructure 40
Imporvements other than Buildings 40
Buildings 40
Machinery Equipment and Vehicles 5-20
51
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
8. Deferred Outflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net assets that applies to a future period(s) and so will not be
recognized as an outflow of resources (expense/expenditure) until then. The City has only one item
that qualifies for reporting in this category. Accordingly, the item, deferred outflows of resources
related to pensions, is reported only in the Statement of Net Position. This item results from various
estimate differences that will be amortized and recognized over future years and current year pension
contributions made subsequent to the measurement date.
9. Compensated Absences
It is the City's policy to permit employees to accumulate a portion of earned but unused vacation and
sick pay benefits. Accumulated vacation and sick pay are accrued when incurred in the government-
wide financial statements. In the case of an employee leaving, the General fund would typically be
responsible for liquidation of the liability.
10. Postemployment Benefits Other Than Pensions
Under Minnesota Statute 471.61, subdivision 2b.,public employers must allow retirees and their
dependents to continue coverage indefinitely in an employer-sponsored health care plan, under the
following conditions: 1) Retirees must be receiving (or eligible to receive) an annuity from a
Minnesota public pension plan, 2) Coverage must continue in group plan until age 65, and retirees
must pay no more than the group premium, and 3) Retirees may obtain dependent coverage
immediately before retirement. It was determined, in accordance with GASB Statement 75, at
December 31, 2021, that the City has a zero liability.
11. Long-term Obligations
In the government-wide financial statement, long-term debt and other long-term obligations are
reported as liabilities in the statement of net position. Bond premiums and discounts are amortized
over the life of the bonds using the straight-line method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are reported as an expense in the period
incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs,
whether or not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
52
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
12. Pensions
For purposes of ineasuring 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.
13. Deferred 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 assets 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 Funds Balance Sheet as unavailable revenue and grants
for subsequent years. The governmental funds report unavailable revenues from four sources:
property taxes, special assessments,park dedication, and grants for subsequent years from the
Municipal State Aid Street program as timing requirements for revenue recognition have not yet
been met. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available.
The City presents deferred inflows of resources on the Governmental Funds Balance Sheet and
Statement of Net Position for grants for subsequent years from the Municipal State Aid Street
program and amounts related to lease receivable balances. The City presents deferred inflows of
resources related to pensions for various estimate differences that will be amortized and recognized
over future years.
14. Fund Balance
In the fund financial statements, fund balance is divided into five classifications based primarily
on the extent to which the City is bound to observe constraints imposed upon the use of resources
reported in the governmental funds. These classifications are defined as follows:
• Nonspendable Fund Balances—Amounts that cannot be spent because they are not in spendable
form, such as prepaid items.
• Restricted Fund Balances—Amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
53
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
14. Fund Balance (Continued)
• Committed Fund Balances—Amounts constrained for specific purposes that are internally
imposed by formal action (resolution) of the City Council, which is the City's highest level of
decision-making authority. Committed amounts cannot be used for any other purpose unless the
City Council modifies or rescinds the commitment by resolution.
• Assigned Fund Balances—Amounts constrained for specific purposes that are internally
imposed. In governmental funds other than the General Fund, assigned fund balance represents
all remaining amounts that are not classified as nonspendable and are neither restricted nor
committed. In the General Fund, assigned amounts represent intended uses established by the
City Council itself or by an official to which the governing body delegates the authority. The
City Council has adopted a fund balance policy which delegates the authority to assign amounts
for specific purposes to the City Administrator and/or Finance Director and requires approval
from the City Council.
• Unassigned Fund Balances—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 has
formally adopted a fund balance policy for the General Fund. The City's policy is to maintain a
minimum unassigned fund balance of 35-50 percent of the next year's budgeted expenditures,
including transfers.
15. Net Position
Net position represents the difference between assets/deferred outflows of resources and
liabilities/deferred inflows of resources. Net position is displayed in three components:
a. Net Investment in Capital Assets—Consists of capital assets, net of accumulated depreciation
reduced by any outstanding debt attributable to acquiring capital assets.
b. Restricted Net Position—Consists of net position balances restricted when there are
limitations imposed on their use through external restrictions imposed by creditors, grantors,
laws, or regulations of othergovernments.
c. Unrestricted Net Position—All other net position balances that do not meet the definition of
"restricted" ar "net investment in capital assets".
54
City of Ham Lake
Notes to Basic Financial Statements
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
15. Net Position (Continued)
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements. Estimates also affect the reported amounts of revenue and expenditures/expense
during the reporting period. Actual results could differ from those estimates.
F. Budgetary Information
1. In August of each year, City staff submits to the City Council, a proposed operating budget for
the year commencing the following January L The operating budget includes proposed
expenditures and the means of financing them for the upcoming year.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution after obtaining taxpayer comments.
4. Budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America.
5. Expenditures may not legally exceed budgeted appropriations at the department level. No fund's
budget can be increased without City Council approval. The City Council may authorize transfer
of budgeted amounts between departments within any fund. Management may amend budgets
within a department level, so long as the total department budget is not changed.
6. Annual appropriated budgets are adopted during the year for the General Fund, Special Revenue
Funds, Capital Project Funds (excluding the Developer Escrow Deposits Fund), and Debt
Service Funds.
7. Budgeted amounts are as originally adopted or as amended by the City Council. There were no
budget amendments made during 2022. Budgeted expenditure appropriations lapse at year-end.
Encumbrances outstanding at year-end expire and outstanding purchase orders are canceled and not
reported in the financial statements.
NOTE 2 —DEPOSITS AND INVESTMENTS
Cash balances of the City's funds are combined (pooled) and invested to the extent available in various
investments authorized by Minnesota Statutes. Each fund's portion of this pool (ar pools) is displayed in
the financial statements as "cash and investments". For purposes of identifying risk of investing public
funds, the balances are summarized on the following pages.
55
City of Ham Lake
Notes to Basic Financial Statements
NOTE 2 —DEPOSITS AND INVESTMENTS (CONTINUED)
A. Deposits
Custodial Credit Risk—Deposits: This is the risk that in the event of a bank failure, the City's deposits
may not be returned to it. In accordance with Minnesota Statutes and as authorized by the City Council,
the City maintains deposits at those depository banks, all of which are members of the Federal Reserve
System.
Minnesota Statutes require that all City deposits be protected by insurance, surety bond or collateral.
The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance
or bonds, with the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks
as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered
by insurance or bonds.
At December 31, 2022, the City's carrying amount of deposits was $3,298,730 and the bank balance was
$3,302,249. The entire bank balance was covered by Federal depository insurance or by collateral held
by the City's agent in the City's name.
B. Investments
As of December 31, 2022, the City had the following investments that are insured or registered, or
securities held by the City's agent in the City's name:
Credit
Quality/ Segmented Time Fair Value Measurement Using
Types of Investments Rating��� Distribution��� Amount Level 1 Leve12 Leve13
Investments at amortized costs
Minnesota Municipal Money
Market Fund N/A less than 1 year $ 5,480,724 $ - $ - $ -
Investments at fair value
Brokered Ceririficate of Deposit N/A less than 1 year 1,752,994 - 1,752,994 -
Brokered Ceritificate of Deposit N/A 1 to 5 years 2,542,401 - 2,542,401 -
Total investments $ 9,776,119 $ - $ 4,295,395 $ -
�i� Ratings are provided by various credit ratings agencies, where applicable, to indicate associate
credit risk.
��> Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available
The City has the following recurring fair value measurements as of December 31, 2022:
• $5,480,724 of investments are valued using amortized cost
• $4,295,395 of investments are valued using a matrix pricing model (Leve12 inputs)
56
City of Ham Lake
Notes to Basic Financial Statements
NOTE 2 —DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
The investments of the City are subject to the following risks:
Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations.Minnesota Statutes 118A.04-OS limits investments that are in the top two ratings issued by
nationally recognized statistical rating organizations. The City's investment policy limits its investments
to those specified in these Statutes. The City's investments are not rated.
Custodial Credit Risk—Investments: This is the risk that in the event of the failure of the counter-party,
the City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. In accordance with the City's investment policy, the City will minimize
custodial credit rislc on bank deposits by obtaining collateral for all uninsured amounts on deposit. The
City further restricts the type of collateral to be used to secure deposits to obligations that are directly or
indirectly backed by the United States of America. The policy states the City will minimize custodial
credit risk by requiring that brokers only be permitted to obtain investments of the City and hold them to
the extent that there is SIOB and excess SIPC coverage available.
Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of a city's investment in
a single issuer. In accordance with the City's investment policy, the City diversifies its investment
portfolio to reduce the risk of loss resulting from over-concentration of assets in a specific maturity, a
specific issuer, ar a specific class of securities. Concentration of credit risk does not apply to
investments which are explicitly guaranteed by the U.S. government or to nonnegotiable certificates of
deposit (bank CDs). The City minimizes concentration of credit risk by diversifying investments. The
City minimized concentration of credit risk through primarily investing in investments guaranteed by the
U.S. government and 4M pooled investments. Individual brokered certificates of deposit were all under
5% of the City's total investment portfolio.
Interest Rate Risk: This is the risk that changes in interest rates will adversely affect the fair value of an
investment. In accordance with its investment policy, the City minimizes interest rate risk by structuring
the investment portfolio so that securities mature to meet cash requirements for ongoing operations,
thereby avoiding the need to sell securities on the open market prior to maturity. The City also permits
no more than 20% of the total investments to extend beyond 5 years and in no circumstances should any
extend beyond 10 years.
57
City of Ham Lake
Notes to Basic Financial Statements
NOTE 2 —DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
A reconciliation of cash and investments as shown on the financial statements for the City follows:
Primary
Government
Carrying amount of deposits $ 3,298,730
Investments 9,776,ll 9
Cash on hand 100
Total $ 13,074,949
As reported on the financial statements
Statement of Net Position $ 13,074,949
NOTE 3 —CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022, was as follows:
Beginning
Balance Increases Decreases Ending Balance
Governemental Activities
Capital assets not being depreciated
Land and easements $ 21,471,088 $ 3,742,261 $ (2,246) $ 25,211,103
Construction in progress 2,802,900 996,321 (1,528,375) 2,270,846
Total capital assets not being depreciated 24,273,988 4,738,582 (1,530,621) 27,481,949
Capital assets being depreciated
Buildings 6,203,076 26,588 - 6,229,664
Improvements other than buildings 2,490,459 9,829 - 2,500,288
Infrastructure 39,909,028 5,283,174 (19,261) 45,172,941
Machinery and equipment 6,836,644 590,304 (66,763) 7,360,185
Total capital assets being depreciated 55,439,207 5,909,895 (86,024) 61,263,078
Less accumulated depreciation
Buildings (2,513,454) (153,383) - (2,666,837)
Improvements other than buildings (1,194,511) (76,022) - (1,270,533)
Infrastructure (7,673,092) (1,021,436) - (8,694,528)
Machinery and equipment (4,547,043) (383,240) 62,652 (4,867,631)
Total accumulated depreciation (15,928,100) (1,634,081) 62,652 (17,499,529)
Total capital assets being depreciated,net 39,511,107 4,275,814 (23,372) 43,763,549
Governmental activities capital assets,net $ 63,785,095 $ 9,014,396 $ (1,553,993) $ 71,245,498
$g
City of Ham Lake
Notes to Basic Financial Statements
NOTE 3 —CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions/programs of the City as follows:
Governmental Acriviries
General Government $ 80,367
Public Safety 2]7,065
Public Works 1,211,310
Parks and Recreation 125,339
Total Depreciation Expense-Govemmental Activiries $ 1,634,081
NOTE 4—INTERFUND ACTIVITY
A. Transfers
Transfers during the year ended December 31, 2022, were as follows:
TransfersIn
Equipment and Revolving Nonmajor
Fund General Building Street Governmental Total
Transfers out
General $ - $ 446,500 $ 900,000 $ - $ 1,346,500
Nonmajor governmental 1,200 - - 89,000 90,200
Total $ 1,200 $ 446,500 $ 900,000 $ 89,000 $ 1,436,700
For the year ended December 31, 2022, the City made the following transfers:
• The General Fund transferred $446,500 to the Equipment and Building Fund and $900,000 to the
Revolving Street Fund for capital financing and operations.
• The Lodging Tax Fund transferred$1,200 to the General Fund for lodging tax.
• The Cable Fund transferred$89,000 to the Ham Laker Fund to cover the fund's cash deficit.
NOTE 5—LEASE RECEIVABLE
The City entered into four cell tower leases. These leases have a discount rate of 3%. Revenue from
these leases for the year ended December 31, 2022, was $147,981. The deferred inflow and receivable
balance related to this lease is $2,161,217 as of December 31, 2022.
NOTE 6—LONG TERM DEBT
A. General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds have been issued far governmental-type activities.
59
City of Ham Lake
Notes to Basic Financial Statements
NOTE 6—LONG TERM DEBT (CONTINUED)
A. General Obligation Bonds (Continued)
General obligation bonds are direct obligations and pledge the full faith and credit of the City. The City
has the following general obligation debt.
Autharized Balance at
Description and issued Interest Rate Issue Date Maturity Date Year End
G.O. Bonds
G.O Capital Improvement
Plan Bonds, Series 2010A $ 1,540,000 2.0-3.50% 8/1/2010 2/1/2026 $ 730,000
Capital Notes, Series 2016A 197,534 2.0 4/14/2016 2/1/2026 59,348
Total G.O. Bonds $ 789,348
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activiries
December 31, Principal Interest Total
2023 $ 204,334 $ 22,896 $ 227,230
2024 210,014 16,651 226,665
2025 185,000 9,889 194,889
2026 190,000 3,325 193,325
Total $ 789,348 $ 52,761 $ 842,109
B. Changes in Long-Term Liabilities
Long-term liabilities activity for the year ended December 31, 2022, was as follows:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
G.O. Bonds payable $ 987,948 $ - $ (198,600) $ 789,348 $ 204,334
Compensated absences
payable 99,292 94,963 (99,292) 94,963 71,215
Total $ 1,087,240 $ 94,963 $ (297,892) $ 884,3ll $ 275,549
60
City of Ham Lake
Notes to Basic Financial Statements
NOTE 7—FUND BALANCE
Fund Balance Classifications
The following is a summary of the components of fund balance:
Developer Other
Escrow Equipment Revolving Governmental
General Deposits and Building Street Funds Total
Nonspendable
Prepaid items $ 88,907 $ - $ - $ - $ - $ 88,907
Restricted for
Park and trails $ - $ - $ - $ - $ 1,042,357 $ 1,042,357
Lawful gambling - - - - 146,475 146,475.00
Recycling program - - - - 72,673 72,673.00
Debt Service - - - - 290,910 290,910.00
Total restricted $ - $ - $ - $ - $ 1,552,415 $ 1,552,415
Committed to
Cable television $ - $ - $ - $ - $ 190,564 $ 190,564
Ham Laker - - - - 17,441 17,441
Future drainage - - - - 122,687 122,687
Street lighting - - - - 193,989 193,989
Oak wilt - - - - 11,205 11,205
EDA - - - - 49,296 49,296
Lodging taxes - - - - 3,443 3,443
Total committed $ - $ - $ - $ - $ 588,625 $ 588,625
Assigned to
Capital projects $ - $ - $ 2,572,904 $ 1,738,608 $ - $ 4,311,512
Unassigned $ 3,972,866 $ - $ - $ - $ - $ 3,972,866
NOTE 8—PENSION PLANS
The City participates in various pension plans, total pension expense for the year ended December 31,
2022, was $239,018. The components of pension expense are noted in the following plan summaries.
The General Fund typically liquidates the liability related to the pensions.
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are
tax qualified plans under Section 401(a) of the Internal Revenue Code.
61
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
A. Plan Description (Continued)
General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General Employees Plan.
General Employees Plan members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not covered by a local
relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the Police and Fire Plan also covers police officers and firefighters belonging to local relief associations
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 Coardinated members
is 1.7% for all years of service. For members hired prior to July 1, 1989, a full annuity is available when
age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1,
1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to
50% of the cost-of-living adjustment(COLA) announced by the SSA, with a minimum increase of at
least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least
a full year as of the June 30 before the effective date of the increase will receive the full increase.
Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June
30 before the effective date of the increase will receive a reduced prarated increase. Far 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 ar after July 1, 1989). Members retiring
under Rule of 90 are exempt from the delay to normal retirement.
62
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—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 Fund Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2022 and the City was required to contribute 7.5% far Coordinated Plan members. The City's
contributions to the General Employees Fund for the year ended December 31, 2022, were $93,503. The
City's contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in fiscal
year 2022 and the City was required to contribute 17.7% for Police and Fire Plan members. The City's
contributions to the Police and Fire Fund for the year ended December 31, 2022, were $17,508. The
City's contributions were equal to the required contributions as set by state statute.
63
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2022, the City reported a liability of$1,290,965 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$37,672.
The net pension liability was measured as of June 30, 2022, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City's
proportionate share of the net pension liability was based on the City's contributions received by PERA
during the measurement period for employer payroll paid dates from July 1, 2021, through June 30,
2022, relative to the total employer contributions received from all of PERA's participating employers.
The City's proportionate share was 0.0163% at the end of the measurement period and 0.0150% for the
beginning of the period.
City's proportionate share of the net pension liability $ 1,290,965
State of Minnesota's proportionate share of the net pension
liability associated with the City 37,672
Total $ 1,328,637
For the year ended December 31, 2022, the City recognized pension expense of$207,215 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $5,629 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.
64
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2022, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the following
sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and
Actual experience $ 10,782 $ 12,547
Changes in actuarial assumptions 269,570 4,220
Net collective difference between projected
and actual investment earnings 52,205 -
Changes inproportion 98,593 4,147
Contributions to GERF subsequent
to the measurement date 46,751 -
Total $ 477,901 $ 20,914
The $46,751 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense Amount
2023 $ 149,736
2024 157,900
2025 (14,148)
2026 116,748
Total $ 410,236
65
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2022, the City reported a liability of$326,370 for its proportionate share of the Police
and Fire Fund's net pension liability. The net pension liability was measured as of June 30, 2022, and the
total pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of that date. The City's proportionate share of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates from
July 1, 2021, through June 30, 2022,relative to the total employer contributions received from all of
PERA's participating employers. The City's proportionate share was 0.0075% at the end of the
measurement period and 0.0031% for the beginning of the period.
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year ended
June 30, 2022. The contribution consisted of$9 million in direct state aid that does meet the definition
of a special funding situation and$9 million in supplemental state aid that does not meet the definition
of a special funding situation. The $9 million direct state aid was paid on October 1, 2021. Thereafter,
by October 1 of each year, the State will pay $9 million to the Police and Fire Fund until full funding is
reached ar July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until
the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement
System) is 90% funded, whichever occurs later.
The State of Minnesota is included as a non-employer contributing entity in the Police and Fire
Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer,
(pension allocation schedules) far the $9 million in direct state aid. Police and Fire Plan employers need
to recognize their proportionate share of the State of Minnesota's pension expense (and grant revenue)
under GASB 68 special funding situation accounting and financial reporting requirements. For the year
ended December 31, 2022, the City recognized pension expense of$8,987 for its proportionate share of
the Police and Fire Plan's pension expense. Included in this amount, the City recognized$2,756 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$675 for the year ended December 31, 2022, as revenue and an offsetting reduction of the
net pension liability for its proportionate share of the State of Minnesota's on-behalf contributions to the
Police and Fire Fund.
66
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2022, the City reported its proportionate share of the Police and Fire Plan's deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and
actual experience $ 15,462 $ -
Changes in actuarial assumptions 152,186 1,702
Net collective difference between projected
and actual investment earnings 49,473 -
Changes in proportion 53,449 63,261
Contributions to PEPFF subsequent
to the measurement date 8,754 -
Total $ 279,324 $ 64,963
The $8,754 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended December 31, 2023. Other amounts reported as deferred outflows and inflows
of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2023 $ 34,938
2024 35,374
2025 34,545
2026 67,936
2027 32,814
Total $ 205,607
67
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA,prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method
in which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected
future rates of return by the target asset allocation percentages. The target allocation and best estimates
of geometric real rates of return for each major asset class are summarized in the following table:
Asset Class Target Allocation Long-Term
Domestic equity 33.5 % 5.10 %
International equity 16.5 5.30
Fixed income 25.0 0.75
Private markets 25.0 5.90
Total 100.0 %
F. Actuarial Methods and Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using an individual
entry-age normal actuarial cost method. The long-term rate of return on pension plan investments used
in the determination of the total liability is 6%. 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 far 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 L25% for the General Employees. The Police
and Fire Plan benefit increase is fixed at 1%per year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25%
after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth
assumptions range from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality
Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee
Mortality tables. The tables are adjusted slightly to fit PERA's experience.
68
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Methods and Assumptions (Continued)
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 2022:
General Employees Fund
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
• There have been no changes since the previous valuation.
Police and Fire Fund
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
• The single discount rate was changed from 6.5% to 55.4%
Changes in Plan Provisions
• There have been no changes since the previous valuation.
G. Discount Rate
The discount rate for the General Employees Plan used to measure the total pension liability in 2022 was
6.5%. The projection of cash flows used to determine the discount rate assumed that contributions from
Plan members and employers will be made at rates set in Minnesota Statutes. Based on these
assumptions, the fiduciary net positions of the General Employees Fund was 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.
69
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
G. Discount Rate (Continued)
In the Police and Fire Fund, the fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members through June 30, 2060. Beginning in the fiscal year
ended June 30, 2061,projected benefit payments exceed the fund's projected fiduciary net position.
Benefit payments projected after were discounted at the municipal bond rate of 3.69% (based on the
weekly rate closest to but not later than the measurement date of the Fidelity "20-Year Municipal GO
AA Index"). The resulting equivalent single discount rate of 5.4% for the Police and Fire Fund was
determined to give approximately the same present value of projected benefits when applied to all years
of projected benefits as the present value of projected benefits using 6.5% applied to all years of
projected benefits through the point of asset depletion and 3.69% thereafter.
H. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
�s.s°io> �6.s°io> ��.s°io>
City's proportionate share of
the General Employees Fund
net pension liability $ 2,039,147 $ 1,290,965 $ 677,341
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(4.4%) (4.4%) (6.4%)
City's proportionate share of
the Police and Fire Fund
net pension liability $ 493,920 $ 326,370 $ 190,917
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.
70
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
I. Pension Plan Fiduciary Net Position (Continued)
Council members of the City of Ham Lake 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.
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 2022 were:
Contribution Amount Percentage of Covered Payroll
Employee Employer Employee Employer Required Rate
$ 286 $ 286 5% 5% 5%
Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association
A. Plan Description
All members of the Ham Lake Fire Department (the Department) are covered by a defined benefit plan
administered by the Ham Lake Fire Relief Association (the Association). As of December 31, 2020, the
plan covered 34 active firefighters and 12 vested terminated firefighters whose pension benefits are
deferred. The plan is a single employer retirement plan and is established and administered in accordance
with Minnesota Statute, chapter 69.
71
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued)
B. Benefits Provided
A fire fighter who completes at least 20 years as an active member of the Department is entitled, after age
50, to a full-service pension upon retirement. The bylaws of the Association also provide for an early
vested service pension for a retiring member who has completed fewer than 20 years of service. The
reduced pension, available to members with 10 years of service, shall be equal to 60 percent of the
pension as prescribed by the bylaws. This percentage increases 4 percent per year so that at 20 years of
service, the full amount prescribed is paid. Members who retire with less than 20 years of service and
have reached the age of 50 years and have completed at least 10 years of active membership are entitled
to a reduced service pension not to exceed the amount calculated by multiplying the member's service
pension for the completed years of service times the applicable non-forfeitable percentage of pension.
C. Contributions
Minnesota Statutes Chapter 424A.092 specifies minimum support rates required on an annual basis. The
minimum support rates from the municipality and from State aids are determined as the amount required
to meet the normal cost plus amortizing any existing prior service costs over a ten year period. The
City's obligation is the financial requirement for the year less state aids. Any additional payments by the
City shall be used to amortize the unfunded liability of the relief association. The Association is
comprised of volunteers: therefore, there are no payroll expenditures (i.e., there are no covered payroll
percentage calculations). During the year, the City recognized as revenue and as an expenditure an on
behalf payment of$98,168 made by the State of Minnesota for the Relief Association.
D. Net Pension Liability
At December 31, 2022, the City reported a net pension asset of$802,305 for the plan. 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 Hildi, Inc. applying an actuarial formula
to specific census data certified by the Association as of December 31, 2021. The table on the following
pages presents the changes in net pension liability(asset) during the year.
Actuarial Assumptions
The total pension liability at December 31, 2022, 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 5.25%
• Salary increases of 2.50%
The value of death benefits is similar to the value of the retirement pension. Because of low retirement
ages, the plan assumes no pre-retirement mortality. Post-retirement mortality does not apply as the
benefit structure and form of payment do not reflect lifetime benefits.
72
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued)
D. Net Pension Liability (Continued)
The long-term return on assets has been set based on the plan's target investment allocation along with
long-term return expectations by asset class. When there is sufficient historical evidence of market
outperformance, historical average returns may be considered. Best estimates of arithmetic real rates of
return for each major asset class included in the pension plan's target asset allocation as of the
measurement date are summarized in the table below.
Long-term
Expected Real
Asset Class Target Allocation Rate of Return
Cash 14.00% 0.84%
Fixed income 40.00 2.27
Equities 44.00 5.65
Other 2.000 4.40
Total 100.00%
Discount Rate
The discount rate used to measure the total pension liability was 5.25%. Assets were projected using
expected benefit payments and expected asset returns. Expected benefit payments by year were
discounted using the expected asset return assumption for years in which the assets were sufficient to
pay all benefit payments. Any remaining benefit payments after the trust fund is eXhausted are
discounted at the municipal bond rate. The equivalent single rate is the discount rate.
73
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued)
E. Changes in the Net Pension Liability
Increase(Decrease)
Net Pension
Total Pension Plan Fiduciary Net Liability(Asset)
Liability(A) Position(b) (a-b)
Beginning balance 1/1/21 $ 1,720,949 $ 2,497,529 $ (776,580)
Changes for the year
Service cost 54,219 - 54,219
Interest on pension liability 83,760 - 83,760
Assumption changes - - -
Plan changes 212,599 - 212,599
Municipal contributions - - -
Nonemployer contributions - 112,258 (ll2,258)
Projected investment return - 124,458 (124,458)
Asset(gain)/loss - 146,142 (146,142)
Benefit payouts (359,497) (359,497) -
Administrative expenses - (6,555) 6,555
Net changes (8,919) 16,806 (25,725)
Balance end of year 12/31/21 $ 1,712,030 $ 2,514,335 $ (802,305)
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net
pension liability of the City, calculated using the discount rate of 5.25%, as well as what the City's net
pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower
(4.25%) or 1-percentage-point higher(6.25%) than the current rate:
City Proportionate Share of NPL
1%Decrease in Current 1%Increase in
Discount Rate Discount Rate Discount Rate
(4.25%) (5.25%) (6.25%)
Net pension liabiliry(asset) $ (775,571) $ (802,305) $ (828,020)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
relief association financial report.
74
City of Ham Lake
Notes to Basic Financial Statements
NOTE 8—PENSION PLANS (CONTINUED)
Defined Benefit Pension Plan—Volunteer Fire Fighter's Relief Association (Continued)
F. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended December 31, 2022, the City recognized pension expense of$22,530. At
December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Difference between expected and
actual experience $ - $ 36,967
Changes in actuarial assumptions 4,126 -
Net collective difference between projected
and actual earnings on Plan investments - 248,369
Contributions to Plan subsequent
to the measurement date 98,168 -
Total $ 102,294 $ 285,336
The $98,168 reported as deferred outflows of resources related to pensions resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2023. 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 Ended Expense
December 31, Total
2023 $ (83,350)
2024 (110,927)
2025 (57,707)
2026 (29,226)
Total $ (281,210)
NOTE 9—RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters.
75
City of Ham Lake
Notes to Basic Financial Statements
NOTE 9—RISK MANAGEMENT (CONTINUED)
The City purchases commercial insurance coverage with other cities in the state through the League of
Minnesota Cities Insurance Trust(LMCIT), which is a public entity risk pool currently operating as a
common risk management and insurance program. The City pays an annual premium to the LMCIT for
its insurance coverage. The LMCIT is self- sustaining through commercial companies for excess claims.
The City is covered through the pool for any claims incurred but unreported but retains risk for the
deductible portion of its insurance policies. The amount of these deductibles is considered immaterial to
the financial statements.
There were no significant reductions in insurance from the previous year or settlements in excess of
insurance coverage for any of the past three years.
The City's worker's compensation insurance policy establishes final premiums after a payroll audit is
completed.
At December 31, 2022, there were no other claims liabilities reported in the fund based on the
requirements of GASB Statement No. 10, which requires a liability for claims be reported if
information prior to the issuance of the financial statements indicates it is probable a liability has been
incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
NOTE 10—CONDUIT DEBT
Anoka County Housing and Redevelopment Authority
During 1996, the Anoka County HRA issued $3,000,000 in Development Bonds, Series 1996B. The
Bonds were issued for the purpose of financing the costs of acquisition, constructing, and equipping
an approximately 49 unit senior housing development project.
The Series 1996B bonds are backed by the full faith and credit of the City in accordance with
Minnesota Statutes, section 469.034, Subd. 2. As such, in the event revenues generated by the Anoka
County HRA are insufficient to pay principal and interest on the Bonds when due, the City has agreed
and pledged to levy taxes on all taxable property within the City.
During 1996, the City incurred expenditures in the amount of$211,851 for the purchase of land and
other development costs in accordance with the joint powers agreement between the City and the
Anoka County HRA. At the time the Series 1996B Bonds are paid in full, should there be any funds
remaining from the project revenues or land sale proceeds, such funds shall be divided equally between
the Anoka County HRA and the City, after first reimbursing the City for those costs incurred for the
aforementioned land purchase and development costs. Annual operating revenues in excess of debt
service and other operating costs of the senior housing development shall be accumulated in an
operating reserve in an amount not in excess of one year's debt service and operating costs. The
operating revenues in excess of this reserve shall be distributed at the end of each bond year equally
between the City and the Anoka County HRA.
76
City of Ham Lake
Notes to Basic Financial Statements
NOTE 10—CONDUIT DEBT (CONTINUED)
Anoka County Housing and Redevelopment Authority (Continued)
The Series 1996B bonds were refunded on September 29, 2008, when the $2,770,000 Housing
Development Revenue Bonds Series 2008A were issued. The Series 2008A bonds were refunded on
February 22, 2018, when the $1,470,000 Housing Development Revenues Bonds Series 2018A were
issued. The outstanding balance as of December 31, 2022, was $760,000. The refunded issuance
matures on January 1, 2026.
Davinci Academy of Arts and Science
The City issued a taxable charter school lease revenue bond on May 18, 2016, to provide financial
assistance to a charter school for the construction of and equipping of a new facility deemed to be in
the public interest. As of December 31, 2022, aggregate principal amount payable of$24,230,000
remains outstanding. The note is secured by the properry financed and is payable solely from payment
received on the underlying mortgage loan. Upon repayment of the note, ownership of the acquired
facilities transfers to the charter school served by the note issuance. Neither the City, the State, nor any
political subdivision thereof is obligated in any manner for repayment of the note. Accordingly, the
note is not reported as a liability in the accompanying financial statements.
Parnassus Preparatory School
The City issued a taxable charter school lease revenue bond on November 15, 2016, to provide
financial assistance to a charter school for the construction of and equipping of a new facility deemed
to be in the public interest. As of December 31, 2022, aggregate principal amount payable of
$24,920,000 remains outstanding. The note is secured by the property financed and is payable solely
from payment received on the underlying mortgage loan. Upon repayment of the note, ownership of
the acquired facilities transfers to the charter school served by the note issuance. Neither the City, the
State, nor any political subdivision thereof is obligated in any manner for repayment of the note.
Accordingly, the note is not reported as a liability in the accompanying financial statements.
NOTE 11 —GASB STANDARDS ISSUED AND NOT YET IMPLEMENTED
GASB Statement No. 96, Subscription-Based Information Technology Arrangements establishes that a
Subscription-Based Information Technology Arrangement (SBITA) results in a right-to-use subscription
asset and a corresponding liability. Under this statement, a governmental entity generally should
recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription
liability. This statement will be effective for the year ending December 31, 2023.
77
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78
REQUIRED SUPPLEMENTARY INFORMATION
79
City of Ham Lake
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
Ciry's
Proportionate
Share of the
State's Net Pension City's
City's City's Proportionate Liablility and Proportionate
Proportionate Proportionate Share the State's Share of the Plan
Share Share (Amount)of Proportionate Net Pension Fiduciary Net
(Percentage)of (Amount)of the Net Share of the Liability Position as a
the Net the Net Pension Net Pension (Asset)as a Percentage of
For Fiscal Pension Pension Liability Liabliliry City's Percentage of the Total
Year Ended Liability Liability Associated Associated Covered its Covered Pension
June 30, (Asset) (Asset) with the City with the City Payroll Payroll Liability
2022 0.0163% $ 1,290,965 $ 37,672 $ 1,328,637 $ 1,218,173 106.0% 76.67%
2021 0.0150% 640,567 19,488 660,055 1,078,000 59.4% 87.00%
2020 0.0131% 785,405 24,212 809,617 931,947 84.3% 79.06%
2019 0.0134% 740,856 22,999 763,855 945,840 783% 80.23%
2018 0.0138% 765,567 25,195 790,762 930,560 82.3% 75.93%
2017 0.0135% 861,831 10,829 872,660 869,056 99.2% 75.90%
2016 0.0131% 1,063,655 13,922 1,077,577 815,298 130.5% 68.91%
2015 0.0131% 678,910 - 678,910 770,853 88.1% 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 Ciry's
Proportionate Liablility and Proportionate
Share the State's Share of the Plan
City's City's (Amount)of Proportionate Net Pension Fiduciary Net
Proportion of Proportionate the Net Share of the Liability Position as a
the Net Share of the Pension Net Pension (Asset)as a Percentage of
For Fiscal Pension Net Pension Liability Liablility City's Percentage of the Total
Year Ended Liability Liability Associated Associated Covered its Covered Pension
June 30, (Asset) (Asset) with the City with the City Payroll Payroll Liability
2022 0.0075% $ 326,370 $ 14,207 $ 340,577 $ 91,198 357.87% 70.53%
2021 0.0031% 23,650 1,096 24,746 37,147 63.67% 93.66%
2020 0.0004% 5,236 121 5,357 4,808 108.90% 87.19%
2019 0.0122% 128,234 N/A 128,234 125,622 102.08% 89.26%
2018 0.0118% 124,714 N/A 124,714 124,691 100.02% 88.84%
2017 0.0120% 162,014 N/A 162,014 ll8,849 136.32% 85.43%
2016 0.0110% 441,449 N/A 441,449 103,360 427.10% 63.88%
2015 0.0100% 113,623 N/A 113,623 92,208 123.22% 86.61%
Note:Schedule is intended to show ten year trend.Additional years will be reported as they become available.
See notes to required supplementary information. 80
City of Ham Lake
Schedule of City Contributions
General Employees Retirement Fund
Last Ten Years
Contributions
in Relarion to
Fiscal Year Statutorily the Statutorily Contribution Contributions as
Ending Required Required Deficiency City's Covered a Percentage of
December 31, Contribution Contributions (Excess) Payroll Covered Payroll
2022 $ 93,503 $ 93,503 $ - $ 1,246,707 7.50°/a
2021 84,278 84,278 - 1,123,707 7.50°/a
2020 75,676 75,676 - 1,009,013 7.50°/a
2019 72,601 72,601 - 968,013 7.50%
2018 70,989 70,989 - 946,520 7.50%
2017 66,252 66,252 - 883,360 7.50%
2016 63,587 63,587 - 847,827 7.50%
2015 59,038 59,038 - 787,173 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 Relarion to
Fiscal Year Statutorily the Statutorily Contribution Contributions as
Ending Required Required Deficiency City's Covered a Percentage of
December 31, Contribution Contributions (Excess) Payroll Covered Payroll
2022 $ 17,508 $ 17,508 $ - $ 98,915 17.70%
2021 19,098 19,098 - 107,898 17.70%
2020 - - - - 17.70%
2019 11,366 11,366 - 67,056 16.95%
2018 20,500 20,500 - 126,543 16.20%
2017 19,902 19,902 - 122,852 16.20%
2016 18,070 18,070 - 111,543 16.20%
2015 15,527 15,527 - 95,846 16.20%
Note: Schedule is intended to show ten year trend.Additional years will be reported as they become available.
See notes to required supplementary information. 81
City of Ham Lake
Schedule of Changes in Net Pension Liability
and Related Ratios-Ham Lake Firefighters'Benefit Association
Measurement Date
December 31, December 31, December 31, December 31,
2022 2021 2020 2019
Total pension liability(TPL)
Service cost $ 54,219 $ 55,011 $ 53,669 $ 50,757
Interest 83,760 95,476 92,172 80,470
Plan changes 212,599 58,565 - 165,033
Assumption changes - 8,252 - -
Investment(gain/loss) - (51,408) - (56,331)
Benefit payouts (359,497) (100,779) (78,665) -
Net change in total
pension liability (8,919) 65,117 67,176 239,929
Beginning of year 1,720,949 1,655,832 1,588,656 1,348,727
End of year $ 1,712,030 $ 1,720,949 $ 1,655,832 $ 1,588,656
Plan fiduciary net pension(FNP)
Projected inveshnent earnings $ 124,458 $ 127,881 $ 108,983 $ 111,110
Contributions ll2,258 115,693 95,488 91,746
Assets(gain/loss) 146,142 142,390 212,159 (194,221)
Benefit payouts (359,497) (100,779) (78,665) -
Administrative expense (6,555) (8,444) (8,235) (8,119)
Net change in plan
fiduciary net position 16,806 276,741 329,730 516
Beginningofyear 2,497,529 2,220,788 1,891,058 1,890,542
End of year $ 2,514,335 $ 2,497,529 $ 2,220,788 $ 1,891,058
Net pension liability(NPL) $ (802,305) $ (776,580) $ (564,956) $ (302,402)
Plan fiduciary net position as a
percentage of the total
pension liability 146.9% 145.1% 1341% ll9.0%
Note: Schedule is intended to show ten year trend.Additional years will be reparted as they become available.
See notes to required supplementary information. 82
Measurement Date
December 31, December 31, December 31,
2018 2017 2016
$ 49,519 $ 51,318 $ 52,945
73,335 65,470 63,051
- 22,137 -
- 42,864 -
- (86,411) (164,091)
122,854 95,378 (48,095)
1,225,873 1,130,495 1,178,590
$ 1,348,727 $ 1,225,873 $ 1,130,495
$ 94,714 $ 87,155 $ 89,925
88,456 88,501 87,179
108,384 6,882 (93,086)
- (86,411) (164,091)
(7,953) (7,378) (8,221)
283,601 88,749 (88,294)
1,606,941 1,518,192 1,606,486
$ 1,890,542 $ 1,606,941 $ 1,518,192
$ (541,815) $ (381,068) $ (387,697)
140.2°/a 1311% 141.2%
83
City of Ham Lake
Schedule of City and Non-Employer Entity Contributions-
Ham Lake Firefighters'Benefit Association
Measurement Date
December 31, December 31, December 31, December 31,
2022 2021 2020 2019
Employer
Statutorily determined contribution(SDC) $ - $ - $ - $ -
Contribution in relation to the SDC - - - -
Contriburion deficiency(excess) $ - $ - $ - $ -
Non-employer
2%state aid $ 112,258 $ 107,298 $ 102,381 $ 95,488
Note: Schedule is intended to show ten year trend.Additional years will be reparted as they become available.
See notes to required supplementary information. 84
Measurement Date
December 31, December 31, December 31, December 31,
2018 2017 2016 2015
$ - $ - $ - $ -
$ - $ - $ - $ -
$ 91,746 $ 88,456 $ 88,501 $ 88,187
g5
City of Ham Lake
Notes to Required Supplementary Information
General Employees Fund
2022 Changes
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
• The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
• The price inflation assumption was decreased from 2.5% to 2.25%.
• The payroll growth assumption was decreased from 3.25% to 3.0%.
• Assumed salary increase rates were changed as recommended in the June 30, 2019, experience
study. The net effect is assumed rates that average 0.25% less than previous rates.
• Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90
and early retirements.
• Assumed rates of termination were changes as recommended in the June 30, 2019, experience
study. The new rates are based on service and are generally lower than the previous rates for
years 2-5 and slightly higher thereafter.
• Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
• The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
• The assumed spouse age difference was changed from two years older for females to one year
older.
• The assumed number of married male new retirees electing the 100% Joint and Survivor option
changed from 35% to 45%. The assumed number of married female new retires electing the
100% Joint and Survivor option changed from 15% to 30%. The corresponding number of
married new retirees electing the Life annuity option was adjusted accordingly.
86
City of Ham Lake
Notes to Required Supplementary Information
General Employees Fund (Continued)
2020 Changes (Continued)
Changes in Plan Provisions
• Augmentation for current privatized members was reduced to 2.0% for the period July l, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2015 to MP-2017.
• 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.
87
City of Ham Lake
Notes to Required Supplementary Information
General Employees Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• The assumed post-retirement benefit increase rate was changed from 1.0%per year for all years
to 1.0% per year through 2044 and 2.5%per year thereafter.
Changes in Plan Provisions
• The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in
2017 and 2018, and $6,000,000 thereafter.
• The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 Changes
Changes in Actuarial Assumptions
• The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5%per year thereafter to 1.0%per year far all future years.
• The assumed investment return was changed from 7.9%to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
• The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2030
and 2.5%per year thereafter to 1.0%per year through 2035 and 2.5%per year thereafter.
Changes in Plan Provisions
• On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General
Employees Fund, which increased the total pension liability by $1.1 billion and increased the
fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised; the State's contribution of$6.0 million, which meets the special
funding situation definition, was due September 2015.
88
City of Ham Lake
Notes to Required Supplementary Information
Police and Fire Fund
2022 Changes
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
• The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
• The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
• The inflation assumption was changed from 2.5% to 2.25%.
• The payroll growth assumption was changed from 3.25% to 3.0%.
• The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
• The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to the
Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement
according to scale MP-2020).
• Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
• Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
• Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates.
The changes resulted in more assumed terminations.
• Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
• Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
89
City of Ham Lake
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
• Postretirement benefit increases were changed to 1.00% far all years, with no trigger.
• An end date of July 1, 2048, was added to the existing $9.0 million state contribution.
• New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and$9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
• Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019,
and 11.80% of pay, effective January 1, 2020.
• Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019,
and 17.70% of pay, effective January 1, 2020.
• Interest credited on member contributions decreased from 4.00% to 3.00%, beginning
• July 1, 2018.
• Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has
already accrued for deferred members will still apply.
• Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 Changes
Changes in Actuarial Assumptions
• Assumed salary increases were changed as recommended in the June 30, 2016, experience study.
The net effect is proposed rates that average 0.34% lower than the previous rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
• The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more eXpected terminations
overall.
• Assumed percentage of married female members was decreased from 65% to 60%.
90
City of Ham Lake
Notes to Required Supplementary Information
Police and Fire Fund (Continued)
2017 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing Joint and Survivor annuities was increased.
• The assumed post-retirement benefit increase rate was changed from 1% for all years to 1%per
year through 2064 and 2.5% thereafter.
• The single discount rate was changed from 5.6%per annum to 7.5%per annum.
Changes in Plan Provisions
• There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
• The assumed post-retirement benefit increase rate was changed from 1.0%per year through 2037
and 2.5% thereafter to 1.0%per year for all future years.
• The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
• The single discount rate changed from 7.90% to 5.60%.
• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% far 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%.
Volunteer Fire Fighter's Relief Association
2022 Changes
Changes in Actuarial Assumptions
• A benefit level increase from $4,000 to $4,500 was reflected in the active liability
2021 Changes
Changes in Actuarial Assumptions
• The long-term rate of return changed from 5.75% to 5.25%.
• The discount rate changed from 5.75% to 5.25%.
91
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92
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
93
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94
NONMAJOR GOVERNMENTAL FUNDS
95
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96
City of Ham Lake
Fund Descriptions
SPECIAL REVENUE FUNDS
The Special Revenue Funds are 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 PROJECT FUND
The Park and Beach Land Capital Project Fund is used to account for parkland dedication fees from
developers when new plats are filed. The fees are restricted for the development of new parks and trails
and replacing or refurbishing equipment in City parks.
97
City of Ham Lake
Combining Balance Sheet-
Nonmajor Governmental Funds
December 31,2022
Capital
Project Debt Service
Special Park and 2016A Circle
Revenue Beach Land 2010 CIP Bond Pines Total
Assets
Cashandinvestments $ 807,723 $ 1,039,328 $ 290,028 $ 26 $ 2,137,105
Accounts receivable 27,710 31,340 - - 59,050
Accrued interest receivable 2,396 3,068 856 - 6,320
Special assessments receivable
Delinquent 1,000 - - - 1,000
Deferred 64,912 - - - 64,912
Due from other governments 76,440 - - - 76,440
Total assets $ 980,181 $ 1,073,736 $ 290,884 $ 26 $ 2,344,827
Liabilities
Accounts payable $ 102,096 $ 39 $ - $ - $ ]02,135
Unearned revenue 5,400 - - - 5,400
Totalliabilities 107,496 39 - - 107,535
Deferred Inflows of Resources
Unavailable revenue-special assessments 64,912 - - - 64,912
Unavailable revenue-other - 31,340 - - 31,340
Total deferred inflows of resources 64,912 31,340 - - 96,252
Fund Balances
Restricted 219,148 1,042,357 290,884 26 1,552,415
Committed 588,625 - - - 588,625
Totalfundbalances 807,773 1,042,357 290,884 26 2,141,040
Total liabilities,deferred inflows
of resources,and fund balances $ 980,181 $ 1,073,736 $ 290,884 $ 26 $ 2,344,827
98
City of Ham Lake
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances-
Nonmajor Governmental Funds
Year Ended December 31,2022
Capital
Project Debt Service
Special Park and 2016A Circle
Revenue Beach Land 2010 CIP Bond Pines Total
Revenues
Property taxes $ - $ - $ 209,416 $ - $ 209,416
Miscellaneous taxes 57,693 - - 31,896 89,589
Special assessments
Interest 85 - - - 85
Intergovernmental 86,174 - - - 86,174
Charges for services 104,906 - - - 104,906
investment income (1,184) 1,138 1,300 - 1,254
Other revenues 66,845 45,636 - - 112,481
Total revenues 314,519 46,774 210,716 31,896 603,905
Expenditures
Current
General government 31,074 - - - 31,074
Public safety 25,000 - - - 25,000
Public works 153,385 - - - 153,385
Economic development 35,830 - - - 35,830
Debt service
Principal - - U0,000 28,600 198,600
interest and other charges - - 27,319 3,296 30,615
Capital outlay
General government 186,816 - - - 186,816
Communiry development 68,100 - - - 68,100
Parks and recreation - 16,251 - - 16,251
Total expenditures 500,205 16,251 197,319 31,896 745,671
Excess of revenues
over(under)expenditwes (185,686) 30,523 13,397 - (141,766)
Other Financing Sources(Uses)
Transfers in 89,000 - - - 89,000
Transfers out (90,200) - - - (90,200)
Total other financing
sources(uses) (1,200) - - - (1,200)
Net change in fund balances (186,886) 30,523 13,397 - (142,966)
Fund Balances
Beginning ofyear 994,659 1,011,834 277,487 26 2,284,006
End ofyear $ 807,773 $ 1,042,357 $ 290,884 $ 26 $ 2,141,040
99
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100
City of Ham Lake
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 specified purposes. During the year, the City had the following Nonmajor
Special Revenue Funds:
Cable Television - This fund receives franchise fees from the North Metro Telecommunications
Commission which are committed for cable television-related expenditures.
The Ham Laker- This fund receives donations for the cost of publishing a newsletter, The Ham
Laker.
Lawful Gambling - This fund receives mandatory contributions from lawful gambling sites within
the City, to be used for public safety expenditures.
Future Drainage - This fund collects fees from developers for drainage-related items within the
watershed district in which the lots are located.
Recycling Program - This fund receives revenues from SCORE grant funds which are restricted to
recycling expenditures.
Street Lighting - The City pays the cost of electricity used by street lights and collects a fee from
developers to cover this expenditure until homes are built and sold at which time homeowners begin
to reimburse the City far the electricity.
Oak Wilt - This fund accounts for expenditures related to prevention and treatment of oak wilt and
receives reimbursements from property owners.
EDA - The Ham Lake EDA is a blended component unit, and the fund balance is committed for the
purpose of promoting economic development in Ham Lake.
Lodging Tax - The City receives lodging tax collected by the AmericInn and sends 95 percent of the
amount collected to the Twin Cities Gateway, which promotes tourism in the area.
101
City of Ham Lake
Subcombining Balance Sheet-
Nonmajor Special Revenue Funds
December 31,2022
Cable Lawful Future
Television Ham Laker Gambling Drainage
Assets
Cash and investments $ 237,275 $ 19,409 $ 120,272 $ 122,452
Accounts receivable - - 25,848 -
Accrued interest receivable 700 57 355 374
Special assessments receivable:
Deferred - - - -
Due from other governments 27,950 - - -
Total assets $ 265,925 $ 19,466 $ 146,475 $ 122,826
Liabilities
Accounts payable 75,361 - - 139
Unearned revenue - 2,025 - -
Totalliabilities 75,361 2,025 - 139
Deferred Inflows of Resources
Unavailable revenue-special assessments - - - -
Fund Balances
Restricted - - 146,475 -
Committed 190,564 17,441 - 122,687
Total fund balances 190,564 17,441 146,475 122,687
Total liabilities,deferred inflows
of resources,and fund balances $ 265,925 $ 19,466 $ 146,475 $ 122,826
1�2
Recycling Street Light Oak Wilt EDA Lodging Taxes Total
$ 35,708 $ 200,540 $ 11,172 $ 55,844 $ 5,051 $ 807,723
- - - - 1,862 27,710
105 592 33 165 15 2,396
- 64,912 - - - 64,912
48,490 - - - - 76,440
$ 84,303 $ 267,044 $ 11,205 $ 56,009 $ 6,928 $ 980,181
11,630 4,768 - 6,713 3,485 102,096
- 3,375 - - - 5,400
11,630 8,143 - 6,713 3,485 107,496
- 64,912 - - - 64,912
72,673 - - - - 219,148
- 193,989 11,205 49,296 3,443 588,625
72,673 193,989 11,205 49,296 3,443 807,773
$ 84,303 $ 267,044 $ 11,205 $ 56,009 $ 6,928 $ 980,181
103
City of Ham Lake
Subcombining Statement of Revenues,Expenditures,and
Changes in Fund Balances-Nonmajor Special Revenue Funds
Year Ended December 31,2022
Cable Lawful Future
Television Ham Laker Gambling Drainage
Revenues
Miscellaneous taxes $ 27,950 $ - $ - $ -
Special assessments:
interest - - - -
Intergovernmental - - - -
Charges for services - 2,700 - 9,428
Investment income (1,150) 61 552 4
Other revenues - 15,000 51,845 -
Total revenues 26,800 17,761 52,397 9,432
Expenditures
Current
General government - 31,074 - -
Public safety - - 25,000 -
Public works - - - 9,301
Economic development - - - -
Capital outlay
General government 186,816 - - -
Community development - - - -
Total expenditures 186,816 31,074 25,000 9,301
Excess of revenues over(under)expenditures (160,016) (13,313) 27,397 131
Other Financing Sources(Uses)
Transfers in - 89,000 - -
Transfers out (89,000) - - -
Total other financing sources
(uses) (89,000) 89,000 - -
Net change in fund balances (249,016) 75,687 27,397 131
Fund Balances
Beginning of year 439,580 (58,246) ll9,078 122,556
End of year $ 190,564 $ 17,441 $ 146,475 $ 122,687
104
Recycling Street Light Oak Wilt EDA Lodging Taxes Total
$ - $ - $ - $ - $ 29,743 $ 57,693
- 85 - - - 85
86,174 - - - - 86,174
2,064 90,714 - - - 104,906
(309) 278 (3) (616) (1) (1,184)
- - - - - 66,845
87,929 91,077 (3) (616) 29,742 314,519
- - - - - 31,074
- - - - - 25,000
86,196 57,747 141 - - 153,385
- - - 7,574 28,256 35,830
- - - - - 186,816
- - - 68,100 - 68,100
86,196 57,747 141 75,674 28,256 500,205
1,733 33,330 (144) (76,290) 1,486 (185,686)
- - - - - 89,000
- - - - (1,200) (90,200)
- - - - (1,200) (1,200)
1,733 33,330 (144) (76,290) 286 (186,886)
70,940 160,659 11,349 125,586 3,157 994,659
$ 72,673 $ 193,989 $ 11,205 $ 49,296 $ 3,443 $ 807,773
1�5
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Cable Television
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Miscellaneous taxes $ 55,000 $ 27,950 $ (27,050)
Investmentincome 2,500 (1,150) (3,650)
Total revenues 57,500 26,800 (30,700)
Expenditures
General government-current
Materials and supplies 500 - (500)
Capital outlay - 186,816 186,816
Total expenditures 500 186,816 186,316
Excess ofrevenues over(under)expenditures $ 57,000 (160,016) $ (217,016)
Fund Balance
Beginning of year 439,580
End of year $ 190,564
1�6
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Ham Laker
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Charges for services $ 3,000 $ 2,700 $ (300)
Investment income - 61 61
Other revenues 1,000 15,000 14,000
Total revenues 4,000 17,761 13,761
Expenditures
General government-current
Other services and charges 33,500 31,074 (2,426)
Excessofrevenuesover(under)expenditures (29,500) (13,313) 16,187
Other Financing Sources
Transfers in 14,050 89,000 74,950
Net change in fund balance $ (15,450) 75,687 $ 16,187
Fund Balance
Beginning of year (58,246)
End of year $ 17,441
1�7
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Lawful Gambling
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Investment income $ - $ 552 $ 552
Other 25,000 51,845 26,845
Total revenues 25,000 52,397 27,397
Expenditures
Public safery-current
Other services and charges 25,000 25,000 -
Excess of revenues over
(under)expenditures - 27,397 27,397
Other Financing Sources(Uses)
Transfers to other funds (14,050) - 14,050
Net change in
fund balance $ (14,050) 27,397 $ 41,447
Fund Balance
Beginning of year 119,078
End of year $ 146,475
1�g
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Future Drainage
Year Ended December 31,2022
Variance with
Original and Final Budget-
Final Budget Actual Amounts Over(Under)
Revenues
Charges for services $ 10,000 $ 9,428 $ (572)
Inveshnentincome 500 4 (496)
Total revenues 10,500 9,432 (1,068)
Expenditures
Public works-current
Other services and charges 51,000 9,301 (41,699)
Excess of revenues over (under)expenditures $ (40,500) 131 $ 40,631
Fund Balance
Beginning of year 122,556
End of year $ 122,687
109
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Recycling
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Intergovernmental revenues $ 85,000 $ 86,174 $ 1,174
Charges for services 1,000 2,064 1,064
Investment income 50 (309) (359)
Totalrevenues 86,050 87,929 1,879
Expenditures
Public works-current
Other services and charges 90,550 86,196 (4,354)
Excess of revenues over(under)expenditures $ (4,500) l,733 $ 6,233
Fund Balance
Beginning of year 70,940
End of year $ 72,673
11�
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Street Light
Year Ended December 31,2022
Variance with
Original and Final Budget-
Final Budget Actual Amounts Over(LJnder)
Revenues
Special assessmcnts:
Interest $ - $ 85 $ 85
Charges for services 66,000 90,714 24,714
Investment income 100 278 178
Totalrevenues 66,100 91,077 24,892
Expenditures
Public works-current
Other services and charges 58,000 57,747 (253)
Excess ofrevenues over expenditures $ 8,100 33,330 $ 25,145
Fund Balance
Beginning of year 160,659
End of year $ 193,989
111
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Oak Wilt
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Investment income $ 50 $ (3) $ (53)
Expenditures
Public works-current
Otherservices and charges 250 141 (109)
Excess of revenues over(under)expenditures $ (200) (144) $ 56
Fund Balance
Beginning of year 11,349
End of year $ 11,205
112
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-EDA
Year Ended December 31,2022
Variance with
Original and Final Budget-
Final Budget Actual Amounts Over(Under)
Revenues
Investment income $ 700 $ (616) $ (1,316)
Expenditures
Economic development-current
Other services and charges 1,000 7,574 6,574
Professional fees capital ouflay - 68,100 68,100
Total expenditures 1,000 75,674 74,674
Excessofrevenuesunderexpenditures $ (300) (76,290) $ (75,990)
Fund Balance
Beginning of year 125,586
End of year $ 49,296
113
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Special Revenue Fund-Lodging Taxes
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Miscellaneous taxes $ 27,000 $ 29,743 $ 2,743
Investment income - (1) (1)
Total revenues 27,000 29,742 2,742
Expenditures
Economic development-cunent
Other services and charges 25,500 28,256 2,756
Excess of revenues over
(under)expenditures 1,500 1,486 (14)
Other Financing Uses
Transfers out (1,350) (1,200) 150
Net change in fund balance $ 150 286 $ 136
Fund Balance
Beginning of year 3,157
End of year $ 3,443
114
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Debt Service Fund-2010 CIP Bonds
Year Ended December 31,2022
Variance with
Original and Final Budget-
Final Budget Actual Amounts Over(Under)
Revenues
General property taxes $ 210,916 $ 209,416 $ (1,500)
Investment income 500 1,300 800
Total revenues 211,416 210,716 (700)
Expenditures
Debt Service
Principal 170,000 170,000 -
Interest and service charges 28,369 27,319 (1,050)
Total expenditures 198,369 197,319 (1,050)
Excess of revenues over expenditures
$ 13,047 13,397 $ 350
Fund Balance
Beginning of year 277,487
End of year $ 290,884
11$
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Debt Service Fund-2016A Circle Pines
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Miscellaneous taxes $ 31,896 $ 31,896 $ -
Expenditures
Debt service
Principal 28,600 28,600 -
Interest and service charges 3,296 3,296 -
Total e�enditures 31,896 31,896 -
Excess of revenues over(under)expenditures $ - - $ -
Fund Balance
Beginning of year 26
End of year $ 26
116
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Capital Project Fund-Park and Beach Land
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Investment income $ 8,500 $ 1,138 $ (7,362)
Other revenues 70,000 45,636 (24,364)
Total revenues 78,500 46,774 (31,726)
Expenditures
Park and recreation-current
Materials and supplies 15,000 - (15,000)
Other services and charges 15,000 - (15,000)
Park and recration-capital outlay 20,000 16,251 (3,749)
Total expenditures 50,000 16,251 (33,749)
Excess of revenues ovcr(under)expenditures $ 28,500 30,523 $ 2,023
Fund Balance
Beginning of year 1,O l l,834
End of year $ 1,042,357
117
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Capital Project Fund-Equipment and Building
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Investment income $ 12,000 $ 1,518 $ (10,482)
Expenditures
General government
Capital outlay 105,800 6,094 (99,706)
Public safety
Materials and supplies 15,000 6,120 (8,880)
Capital outlay 2,681,000 65,192 (2,615,808)
Total public safery 2,696,000 71,312 (2,624,688)
Public works
Capital outlay 325,000 - (325,000)
Park and recreation
Capital outlay 45,000 - (45,000)
Total expenditures 3,171,800 77,406 (3,094,394)
Excess ofrevenues over(under)expenditures (3,159,800) (75,888) 3,083,912
Other Financing Sources(Uses)
Proceeds from sale of capital assets 36,000 - (36,000)
Transfers in 446,000 446,500 500
Total other financing sources(uses) 482,000 446,500 (35,500)
Net change in fund balance $ (2,677,800) 370,612 $ 3,048,412
Fund Balance
Beginning of year 2,202,292
End of year $ 2,572,904
11g
City of Ham Lake
Schedule of Revenues,Expenditures,and Changes in
Fund Balance-Budget(Original and Final)and Actual-
Capital Project Fund-Revolving Street
Year Ended December 31,2022
Variance with
Original and Actual Final Budget-
Final Budget Amounts Over(Under)
Revenues
Special assessments $ 74,000 $ 72,240 $ (1,760)
Intergovernmental revenues
State aids 250,000 1,160,709 910,709
Investment income 10,000 5,368 (4,632)
Otherrevenues - 4,015 4,015
Total revenues 334,000 1,242,332 908,332
Expenditures
Public works
Other services and charges 200 3,687 3,487
Capital outlay 2,592,822 1,329,584 (1,263,238)
Total expenditures 2,593,022 1,333,271 (1,259,751)
Excess of revenues over(under)expenditures (2,259,022) (90,939) 2,168,083
Other Financing Sources
Transfers in 900,000 900,000 -
Net change in fund balance $ (1,359,022) 809,061 $ 2,168,083
Fund Balance
Beginning of year 929,547
End of year $ 1,738,608
119
City of Ham Lake
Schedule of Revenues-
Budget(Original and Final)and Actual-General Fund
Year Ended December 31,2022
Variance With
Original and Actual Final Budget-
Final Budget Amounts Over(under)
Revenues
General property taxes $ 5,418,693 $ 5,376,363 $ (42,330)
Licenses and permits 548,600 570,567 21,967
Intergovernmental revenues
State grants and aids 3,500 5,051 1,551
State-fire aid 100,000 139,032 39,032
State-MSA-street maintenance 44,000 45,165 1,165
Federal grants and aids - 383,555 383,555
Local grants and aids 3,500 5,945 2,445
Total intergovernmental
revenues 151,000 578,748 427,748
Charges for services
Community development 25 17 (8)
General government 140,300 219,766 79,466
Parks and recreation 2,200 3,725 1,525
Total charges for services 142,525 223,508 80,983
Fines and farfeitures 30,000 32,056 2,056
Investment income 1,000 29,664 28,664
Contributions and donations 9,500 14,000 4,500
Other revenues 1,000 36,698 35,698
Total miscellaneous 11,500 80,362 68,862
Total revenues 6,302,318 6,861,604 559,286
Other Financing Sources
Proceeds from sale of capital assets - 185 185
Transfers in 1,200 1,200 -
Total other financing sources 1,200 1,385 185
Total revenues and other financing sources $ 6,303,518 $ 6,862,989 $ 559,471
I2�
City of Ham Lake
Schedule of Expenditures-
Budget(Original and Final)and Actual-General Fund
Year Ended December 31,2022
Variance With
Original and Actual Final Budget-
Final Budget Amounts Over(under)
Expenditures
General government
Mayar and council
Personal services $ 28,220 $ 25,782 $ (2,438)
Other services and charges 53,859 66,574 12,715
Total mayor and council 82,079 92,356 10,277
Administration
Personalservices 160,060 161,167 1,107
Materials and supplies 520 354 (166)
Other services and charges 861 538 (323)
Total administration/elecrions 161,441 162,059 618
City clerk
Personal services 136,640 148,435 11,795
Materials and supplies 4,220 1,331 (2,889)
Other services and charges 6,187 4,278 (1,909)
Total information technology 147,047 154,044 6,997
Finance
Personal services 214,580 213,891 (689)
Materials and supplies 1,639 1,620 (19)
Other services and charges 129,224 129,181 (43)
Total finance 345,443 344,692 (751)
Prosecurions
Other services and charges 78,000 78,000 -
Municipal buildings
Materials and supplies 1,000 1,005 5
Other services and charges 37,075 41,376 4,301
Total municipal buildings 38,075 42,381 4,306
Planning and zoning
Personal services 83,860 66,410 (17,450)
Supplies,repairs and maintenance 820 422 (398)
Other services and charges 9,466 16,622 7,156
Total planning and zoning 94,146 83,454 (10,692)
I21
City of Ham Lake
Schedule of Expenditures-
Budget(Original and Final)and Actual-General Fund
Year Ended December 31,2022
Variance With
Original and Actual Final Budget-
Final Budget Amounts Over(under)
Expenditures
General government(Continued)
Other general government
Personal services $ 6,200 $ 7,960 $ 1,760
Supplies,repairs and maintenance ll6,211 501,763 385,552
Capital outlay 10,990 3,345 (7,645)
Total other general government 133,401 513,068 379,667
Total general government 1,079,632 1,470,054 390,422
Public safety
Police
Other services and charges 1,276,917 1,217,ll0 (59,807)
Fire
Personal services 394,635 390,108 (4,527)
Materials and supplies 43,940 53,270 9,330
Otherservicesand charges 237,260 261,807 24,547
Total fire 675,835 705,185 29,350
Sirens
Other services and charges 9,187 8,206 (981)
Building inspections
Personal services 388,010 378,784 (9,226)
Materials and supplies 8,109 7,201 (908)
Other services and charges 32,779 28,077 (4,702)
Total building inspections 428,898 414,062 (14,836)
Animal control
Materials and supplies 150 - (150)
Other services and charges 3,000 4,386 1,386
Total animal control 3,150 4,386 1,236
Other public safety
Capital outlay 47,000 22,587 (24,413)
Total public safety 2,440,987 2,371,536 (69,451)
Public works
Snow and Ice Removal
Personal services 6,190 65,538 59,348
Materials and supplies 79,000 49,916 (29,084)
Other services and charges 1,000 33] (669)
Total engineering 86,190 115,785 29,595
I22
City of Ham Lake
Schedule of Expenditures-
Budget(Original and Final)and Actual-General Fund
Year Ended December 31,2022
Variance With
Original and Actual Final Budget-
Final Budget Amounts Over(under)
Expenditures
Public works(Continued)
Streets/Highways
Personal services $ 522,590 $ 515,945 $ (6,645)
Materials and supplies 135,400 102,687 (32,713)
Other services and charges 269,592 230,955 (38,637)
Total streets 927,582 849,587 (77,995)
Storm Drainage
Personal services 660 1,897 1,237
Other services and charges 16,090 30,532 14,442
Total central garage 16,750 35,770 19,020
Buildings
Materials and supplies 3,000 2,938 (62)
Other services and charges 33,730 36,072 2,342
Total street lighting 36,730 39,010 2,280
Signals and Signs
Materials and supplies 7,000 4,624 (2,376)
Other services and charges 14,000 13,355 (645)
Total public works administration 21,000 17,979 (3,021)
General
Capital outlay 23,000 4,957 (18,043)
Total public warks l,ll 1,252 1,063,088 (48,164)
Parks and recreation
Parks
Personal services 182,270 105,222 (77,048)
Materials and supplies 29,050 23,098 (5,952)
Other services and charges 74,409 49,137 (25,272)
Total parks 285,729 177,457 (108,272)
Senior Center
Materials and supplies 2,500 984 (1,516)
Other services and charges 18,418 14,692 (3,726)
Total senior center 20,918 15,676 (5,242)
123
City of Ham Lake
Schedule of Expenditures-
Budget(Original and Final)and Actual-General Fund
Year Ended December 31,2022
Variance With
Original and Actual Final Budget-
Final Budget Amounts Over(under)
Expenditures
General
Capital outlay $ 18,500 $ 12,210 $ (6,290)
Totalparksandrecreation 325,147 205,343 (ll9,804)
Total expenditures 4,957,018 5,110,021 153,003
Other Financing Uses
Transfers out 1,346,500 ],346,500 -
Total expenditures and other financing uses $ 6,303,518 $ 6,456,521 $ 153,003
124
STATISTICAL SECTION
125
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126
City of Ham Lake
Statistical Section (Unaudited)
This part of the City of Ham Lake's 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 gove�nment's
fznancial performance and well-being have changed over time.
Table 1 -Net Position by Component
Table 2 - Changes in Net Position
Table 3 - FundBalances ofGovernmentalFunds
Table 4 - Changes in FundBalances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant local
revenue source,propeNty taxes.
Table 5 - Governmental Activities Tax Revenues by Source
Table 6 -Assessed Value and Estimated Actual Value of Taxable Property
Table 7 - Property Tax Rates-Direct and Overlapping Governments
Table 8 - Principal Property Taxpayers
Table 9 - Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the government's
cu�rent level of outstanding debt and the government's ability to issue additional debt in the future.
Table 10-Ratios of Outstanding Debt by Type
Table 11 -Ratios of Net General Bonded Debt Outstanding
Table 12-Direct and Overlapping Governmental Activities Debt
Table 13 -Legal Debt Margin Information
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the�eader understand the
environinent within which the government's financial activities take place.
Table 14 - Demographic and Economic Statistics
Table 15 -Principal Employers
Table 16 - Full-time Equivalent City Employees by Function/Program
Table 17- Operating Indicators by Function/Program
Table 18 - Capital Assets by Function/Program
127
City of Ham Lake
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Unaudited)
Fiscal Years
2013 2014 2015 2016 2017
Governmental Activities
Net Inveshnent in Capital Assets $ 29,346,539 $ 30,241,995 $ 32,409,825 $ 37,949,507 $ 42,831,337
Restricted 1,076,850 1,241,094 1,219,172 1,166,118 1,211,151
Unrestricted 7,274,638 7,300,464 7,079,ll8 7,353,598 7,331,021
Total Governmental Activities
Net Position $ 37,698,027 $ 38,783,553 $ 40,708,1 l5 $ 46,469,223 $ 51,373,509
Primary Government
Net Inveshnent in Capital Assets $ 29,346,539 $ 30,241,995 $ 32,409,825 $ 37,949,507 $ 42,831,337
Restricted 1,076,850 1,241,094 1,219,172 1,166,118 1,211,151
Unrestricted 7,274,638 7,300,464 7,079,ll8 7,353,598 7,331,021
Total Primary Government
NetPosition $ 37,698,027 $ 38,783,553 $ 40,708,115 $ 46,469,223 $ 51,373,509
Note: The City implemented GASB Statement No.68 and GASB Statement No.71 in fiscal year 2015.
Years priar to 2015 have not been restated.
I2g
Table 1
Fiscal Years
2018 2019 2020 2021 2022
$ 48,729,077 $ 50,532,968 $ 55,774,236 $ 62,797,147 $ 70,456,150
1,455,104 1,356,587 283,164 1,466,322 1,541,736
8,001,777 7,703,332 9,001,995 8,434,770 9,675,617
$ 58,185,958 $ 59,592,887 $ 65,059,395 $ 72,698,239 $ 81,673,503
$ 48,729,077 $ 50,532,968 $ 55,774,236 $ 62,797,147 $ 70,456,150
1,455,104 1,356,587 283,164 1,466,322 1,541,736
8,001,777 7,703,332 9,001,995 8,434,770 9,675,617
$ 58,185,958 $ 59,592,887 $ 65,059,395 $ 72,698,239 $ 81,673,503
129
City of Ham Lake
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Unaudited)
Fiscal Years
2013 2014 2015 2016 2017
Expenses
Governmental Activities
General Government $ 1,022,419 $ 1,038,364 $ 978,205 $ 1,296,309 $ 1,071,243
Public Safery 1,763,296 1,773,570 1,817,661 1,838,033 1,997,171
Public Works 2,494,886 2,461,671 2,633,383 2,563,453 2,834,411
Parks and Recreation 380,314 360,469 374,152 360,511 328,357
Economic Development 47,580 50,458 43,474 54,332 39,585
Interest on Long-Term Debt 61,918 59,749 60,138 64,936 55,943
Total Governmental Activities Expenses 5,770,413 5,744,281 5,907,013 6,177,574 6,326,710
Business-Type Activities Expense - - - - -
Total Primary Government Expenses $ 5,770,413 $ 5,744,281 $ 5,907,013 $ 6,177,574 $ 6,326,710
Program Revenues
Governmental Activities
Charges for Services
General Government $ 181,389 $ 169,352 $ 186,880 $ 407,553 $ 183,588
Public Safery 415,010 413,589 451,912 466,911 562,575
Public Works 69,762 106,667 75,208 75,756 118,938
Parks and Recreation 2,755 3,640 4,185 4,688 3,920
Economic Development 3,900 2,700 2,700 2,300 -
Operating Grants and Contributions 255,326 387,731 410,439 469,360 479,229
Capital Grants and Contriburions 1,649,972 1,402,801 2,622,824 5,819,352 4,995,492
Total Governmental Activities Program Revenues 2,578,ll4 2,486,480 3,754,148 7,245,920 6,343,742
Business-Type Activities Program Revenues - - - - -
Total Primary Government Program Revenues $ 2,578,114 $ 2,486,480 $ 3,754,148 $ 7,245,920 $ 6,343,742
Net Revenue(Expense)
Governmental Activities $ (3,192,299) $ (3,257,801) $ (2,152,865) $ 1,068,346 $ 17,032
Business-Type Activities - - - - -
Total Primary Government
Net Revenue(Expense) $ (3,192,299) $ (3,257,801) $ (2,152,865) $ 1,068,346 $ 17,032
General Revenues and Other
Changes in Net Position
Governmental Activities
Taxes
Property Taxes $ 4,088,818 $ 4,214,730 $ 4,339,569 $ 4,475,867 $ 4,588,120
Lodging Taxes 19,975 22,747 24,261 25,861 28,630
Franchise Taxes 44,301 44,601 44,666 84,085 95,707
Grants and contributions-unrestricted 14,275 ll,101 24,492 34,490 50,466
InvestmentEarnings 49,324 50,148 44,697 55,827 84,331
Gain on Sale of Assets 24,513 - 31,416 16,632 40,000
Total Governmental Activities 4,241,206 4,343,327 4,509,101 4,692,762 4,887,254
Business-Type Activities - - - - -
Total Primary Government $ 4,241,206 $ 4,343,327 $ 4,509,101 $ 4,692,762 $ 4,887,254
Change in Net Position
Governmental Activities $ 1,048,907 $ 1,085,526 $ 2,356,236 $ 5,761,108 $ 4,904,286
Business-Type Activities - - - - -
Total Primary Government $ 1,048,907 $ 1,085,526 $ 2,356,236 $ 5,761,108 $ 4,904,286
130
Table 2
Fiscal Years
2018 2019 2020 2021 2022
$ 1,076,611 $ 1,097,861 $ 2,237,751 $ 1,129,663 $ 1,739,042
2,077,218 2,360,690 2,165,372 2,228,626 2,460,873
2,120,457 2,640,900 2,453,992 2,149,396 2,861,565
372,050 53,570 38,695 70,709 356,448
73,631 325,941 466,934 382,414 103,930
52,661 45,644 43,402 34,915 28,251
5,772,628 6,524,606 7,406,146 5,995,723 7,550,109
$ 5,772,628 $ 6,524,606 $ 7,406,146 $ 5,995,723 $ 7,550,109
$ 165,382 $ 240,148 $ 278,741 $ 326,571 $ 384,465
539,871 505,979 583,237 607,248 569,768
89,280 81,249 136,900 123,013 106,238
4,645 4,495 1,300 3,225 3,725
503,029 349,993 290,673 363,997 351,216
6,168,994 1,349,538 4,938,644 6,801,898 8,881,320
7,47],201 2,531,402 6,229,495 8,225,952 10,296,732
$ 7,471,201 $ 2,531,402 $ 6,229,495 $ 8,225,952 $ 10,296,732
$ 1,698,573 $ (3,993,204) $ (1,176,651) $ 2,230,229 $ 2,746,623
$ 1,698,573 $ (3,993,204) $ (1,176,651) $ 2,230,229 $ 2,746,623
$ 4,827,583 $ 4,929,333 $ 5,069,275 $ 5,228,297 $ 5,696,533
30,988 31,162 24,048 28,733 29,743
85,872 86,510 86,984 62,821 59,846
34,069 19,371 1,299,337 9,423 401,530
126,890 220,336 139,105 (3,841) 37,804
8,474 113,421 24,410 83,182 185
5,113,876 5,400,133 6,643,159 5,408,615 6,225,641
$ 5,113,876 $ 5,400,133 $ 6,643,159 $ 5,408,615 $ 6,225,641
$ 6,812,449 $ 1,406,929 $ 5,466,508 $ 7,638,844 $ 8,972,264
$ 6,812,449 $ 1,406,929 $ 5,466,508 $ 7,638,844 $ 8,972,264
131
City of Ham Lake
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Unaudited
Fiscal Years
2013 2014 2015 2016 2017
General Fund
Nonspendable
Prepaid expense $ 32,057 $ 44,757 $ 45,365 $ 50,917 $ 45,290
Assigned 31,491 47,367 - - -
Unassigned 2,823,354 2,865,127 3,006,918 3,006,179 3,050,921
Reserved n/a n/a n/a n/a n/a
Unreserved n/a n/a n/a n/a n/a
Total General Fund $ 2,886,902 $ 2,957,251 $ 3,052,283 $ 3,057,096 $ 3,096,211
All Other Governmental Funds
Nonspendable
Prepaid eapense $ 1,115 $ 1,142 $ 1,155 $ 1,146 $ 1,143
Restricted 1,072,022 1,202,734 1,l 85,768 1,291,274 1,351,3 80
Committed 873,994 927,343 869,221 849,510 781,100
Assigned 3,487,666 3,453,919 3,528,133 3,957,196 4,005,246
Unassigned - - - - -
Reserved n/a n/a nla nla n/a
Unreserved,reported in
Special Revenue Funds n/a n/a n/a n/a n/a
Debt Service n/a n/a n/a n/a n/a
Capita]Project Funds n/a n/a n/a n/a n/a
Total all Other
Governmental Funds $ 5,434,797 $ 5,585,138 $ 5,584,277 $ 6,099,126 $ 6,138,869
Total Fund Balance $ 8,321,699 $ 8,542,389 $ 8,636,560 $ 9,156,222 $ 9,235,080
Notes:Governmental funds report the difference between their assets and their liabilities as fund balance.
Details regarding the City's fund balances are presented in Note 7 of the financial statements.
132
Table 3
Fiscal Years
2018 2019 2020 2021 2022
$ 44,922 $ 68,574 $ 69,773 $ 83,001 $ 88,907
3,215,413 3,161,707 3,749,117 3,572,304 3,972,866
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
$ 3,260,335 $ 3,230,281 $ 3,818,890 $ 3,655,305 $ 4,061,773
$ 961 $ 1,003 $ 1,014 $ 1,114 $ -
1,474,839 1,517,883 1,545,039 1,479,365 1,552,415
699,455 824,650 865,641 862,887 588,625
4,403,479 3,621,067 3,104,923 3,131,839 4,311,512
(350) (16,850) (42,685) (59,360) -
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
n/a n/a n/a n/a n/a
$ 6,578,384 $ 5,947,753 $ 5,473,932 $ 5,415,845 $ 6,452,552
$ 9,838,719 $ 9,178,034 $ 9,292,822 $ 9,071,150 $ 10,514,325
133
City of Ham Lake
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Unaudited)
Fiscal Years
2013 2014 2015 2016
Revenues
Taxes $ 4,184,113 $ 4,307,977 $ 4,401,323 $ 4,599,670
Licenses and Permits 398,219 400,347 435,144 457,826
Intergovernmental 541,193 550,132 1,440,450 2,815,602
Charges for Services 189,811 230,245 202,745 406,357
Fines andFarfeitures 54,296 46,132 51,618 42,585
Special Assessments 27,845 20,545 10,195 8,ll0
Interest on Investments 49,324 50,148 44,697 55,827
Miscellaneous 135,472 137,909 131,628 191,025
Total Revenues 5,580,273 5,743,435 6,717,800 8,577,002
Expenditures
General Government 952,996 943,403 964,196 926,774
Public Safety 1,628,938 1,651,913 1,684,350 1,715,838
Public Works 1,038,625 977,738 1,044,789 983,250
Parksand Recrearion 265,830 256,943 244,181 253,916
Economic Development 31,377 42,984 42,175 54,332
CapitalOutlay 2,310,902 1,474,195 2,484,135 4,196,223
Debt Service
Principal 115,000 115,000 130,000 155,826
Interest and Other Charges 62,869 60,569 61,219 66,017
Total Expenditures 6,406,537 5,522,745 6,655,045 8,352,176
Excess of Revenues Over
(Under)Expenditures 587,522 (826,264) 220,690 224,826
Other Financing Sources(Uses)
Bonds Issued - - - -
Premium on Bond Issue - - - -
Issuance of Contract for Deed - - - -
Transfers In 1,029,777 1,021,420 1,184,995 1,680,286
Transfers Out (1,029,777) (1,021,420) (1,184,995) (1,680,286)
Sale of Capital Assets l 8,262 - 31,416 45,650
Total Other Financing
Sources(Uses) 18,262 - 31,416 45,650
Net Change in Fund Balances $ (808,002) $ 220,690 $ 252,106 $ 270,476
Debt Service as a Percentage of
Noncapital Expenditures 3.7% 3.6% 3.6% 3.2%
Notes:Debt service as a percentage of Noncapital Expenditures is restated for 2018 and 2019.
134
Table 4
Fiscal Years
2017 2018 2019 2020 2021 2022
$ 4,721,402 $ 4,960,275 $ 4,917,533 $ 5,160,767 $ 5,368,370 $ 5,675,368
557,273 537,427 512,039 570,476 592,028 570,567
1,350,839 1,668,417 1,246,049 3,286,706 1,269,748 1,825,631
232,831 218,031 268,623 300,660 374,157 420,860
37,707 35,114 27,610 22,131 26,530 32,056
8,487 34,984 90,926 44,489 98,632 72,325
84,331 126,890 220,336 139,105 (3,841) 37,804
211,647 181,070 273,330 265,977 283,303 167,194
7,204,517 7,762,208 7,556,446 9,790,311 8,008,927 8,801,805
972,511 1,046,122 1,039,328 2,056,395 1,145,383 1,590,229
1,790,997 1,930,686 2,053,446 2,188,143 2,159,209 2,380,069
1,184,327 1,116,072 1,257,368 1,043,022 1,174,268 1,215,203
222,401 266,306 243,172 229,269 237,858 193,133
39,585 73,631 53,570 38,695 28,295 35,830
2,717,136 2,501,605 3,470,527 3,910,855 3,343,700 1,7]5,136
180,826 186,524 187,222 187,920 187,920 198,600
57,876 53,192 47,871 45,634 37,148 30,615
7,165,659 7,174,138 8,352,504 9,699,933 8,313,781 7,358,815
38,858 588,070 (796,058) 90,378 (304,854) 1,442,990
249,186 - - - - -
1,497,823 1,247,000 1,271,350 1,271,350 1,852,670 1,436,700
(1,497,823) (1,247,000) (1,271,350) (1,271,350) (1,852,670) (1,436,700)
40,000 15,569 135,373 24,410 83,182 185
289,186 15,569 135,373 24,410 83,182 185
$ 328,044 $ 603,639 $ (660,685) $ 114,788 $ (221,672) $ 1,443,175
6.0% 4.9% 4.4% 3.7% 4.7% 3.8%
135
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136
City of Ham Lake
Governmental Activities Tax Revenues By Source
Last Ten Fiscal Years
(Shown by year of tax collectability)
(Unaudited)
Table 5
Fiscal Property Lodging Franchise
Year Tax Tax' Tax 2 Total
2013 $ 4,088,818 $ 19,975 $ 44,301 $ 4,153,094
2014 4,214,730 22,747 44,601 4,282,078
2015 4,339,569 24,261 44,666 4,408,496
2016 4,475,867 25,861 84,085 4,585,813
2017 4,588,120 28,630 95,707 4,712,457
2018 4,827,583 30,988 85,872 4,944,443
2019 4,929,333 31,162 86,510 5,047,005
2020 5,069,275 24,048 86,984 5,180,307
2021 5,375,448 28,733 62,821 5,467,002
2022 5,696,533 29,743 59,846 5,786,122
Notes: ' The lodging tax is received from a motel which is located in the City of Ham Lake
This motel collects a 3%lodging tax on its room rentals,which it remits to the
City. The City sends 95%of the lodging tax to a local convention and visitars
bureau. The City was a member of Visit Minneapolis North from 2003 to 2009.
On January 1,2010 the City joined a newly-formed arganization,Twin Cities
Gateway. This organization promotes tourism in Ham Lake and eight other
communities on the northern side of Minneapolis and St.Paul.
�The franchise tax is received from Narth Metro Telecommunications Commission
and recarded in the Cable TV Fund and the 2016A Circle Pines Debt Service Fund.
Please see Note 3D of the Notes to the Financial Statements for additional
information regarding the 2016A capital notes.
137
City of Ham Lake
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(Shown by year of tax collectability)
Taxable Market Value
Fiscal Personal Seasonal and Commercial Public
Year Property Residential Agricultural Recreational &Industrial Utilities
2013 $ 16,807,500 $ 1,055,786,868 $ 31,449,425 $ 3,012,000 $ 117,500,200 $ 621,300
2014 16,390,400 1,066,203,668 33,216,741 2,600,500 112,824,500 654,000
2015 15,724,600 1,228,182,812 32,717,145 2,561,800 114,228,400 610,700
2016 16,650,500 1,281,691,359 32,647,960 2,463,900 117,361,600 595,800
2017 17,437,700 1,380,962,974 33,064,497 2,526,100 124,118,700 814,600
2018 18,090,300 1,497,195,965 33,108,796 2,463,200 127,320,200 798,800
2019 18,345,500 1,630,174,776 35,273,466 2,760,400 141,158,000 764,000
2020 18,695,400 1,760,205,419 35,876,998 11,446,300 144,021,600 713,500
2021 19,987,600 1,847,192,972 38,036,215 11,506,700 156,344,300 596,400
2022 15,451,100 2,039,325,089 39,968,257 11,543,100 167,593,100 647,800
Notes: � Taxable market value is defined in Minnesota Statute 272.03 as"the usual selling price at the time of assessment."
It is the price that could be obtained for a sale under competitive,open market conditions. Minnesota Statute 273.08
requires that the Assessar review every parcel at least once every five years to be sure information used to establish
the property value is accurate and up to date. Characteristics of each property is entered into a computerized
system,along with information from actual sales of property in each communiry. This information is used to
update the taxable market value each year.
�The direct tax rate is the amount of property tax levied per thousand dollars of tax capaciry. It does not include
the levy for the market value referendum. The last year of the market value referendum was payable 2010.
3 Tax capacity is determined by multiplying the market value of the property by the statutory percentage rate
(also called the class rate)for the specific classification of use of the property. Minnesota has many tax
rates,and those rates can be changed only by the State Legislature. For a list of the current class rates,
contact Anoka Counry Property Records and Taxation Division.
Source: Anoka County Properry Records and Taxation
138
Table 6
Total Taxable Direct Tax Total Estimated
Market Value� Tax Rate� Capacity 3 Market Value
$ 1,225,177,293 29.226 $ 13,420,528 $ 1,319,312,400
1,231,889,809 29.689 13,427,903 1,325,535,400
1,394,025,457 26.869 15,070,944 1,480,296,000
1,451,411,119 26.914 15,695,199 1,536,053,500
1,558,924,571 25.578 16,861,195 1,640,059,400
1,678,977,261 25.007 18,120,23 8 1,755,089,400
1,828,476,142 23.439 19,766,425 1,899,329,300
1,970,959,217 22.426 21,352,780 2,025,033,800
2,073,664,187 21.953 22,483,404 2,143,670,400
2,274,528,446 21.486 24,646,326 2,338,397,100
139
City of Ham Lake
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Overlapping Rates �
County Misc. Tax Capaciry Rate
City Direct Rate Tax Tax District 11 District 831
Payable General G.O.Bond Total Capacity Capacity Anoka- Forest
Year Revenue Rate Rate Rate Rate� Hennepin Lake
2013 27.896 1330 29.226 44.761 4.094 26.801 22.018
2014 28.289 1.400 29.689 43.239 4.168 28.265 23.896
2015 25.666 1.203 26.869 38.123 4.117 22.482 21.145
2016 25.581 1333 26.914 38.894 4.430 20.885 24.902
2017 24363 1.215 25.578 36.841 4.103 18.590 31.213
2018 23.899 1108 25.007 35.334 4.026 18.392 26.231
2019 22.450 0.989 23.439 34.473 3.666 16330 24.856
2020 21.523 0.903 22.426 33.078 3.406 16.948 25.097
2021 21.072 0.881 21.953 31.086 3.469 16152 25.090
2022 20.683 0.803 21.486 29.254 3.239 16.319 24.425
Notes: � Overlapping rates are those of local and county governments that apply to property owners within the City of Ham Lake.
Anoka County rates apply to all property owners in Ham Lake. Some properties are within the Anoka Hennepin school
district and others are within the Farest Lake school district. Total tax capacity rates are shown for properties within
each of the school districts. Some but not all properties are within the Coon Creek or Rice Creek watershed
districts. Therefore,the watershed rates are not included in the total tax capacity rates.
� Miscellaneous tax capacity rates include the following: Metropolitan Council,Metro Mosquito Control,
Anoka County RR Authority,Anoka County HRA,and County/Municipal Public Safety.
Source: Anoka County Property Records and Taxation
140
Table 7
Total Tax Capacity Rate
Excluding Watershed
Within Within Coon Rice
School School Creek Creek
District 11 District 831 Watershed Watershed
104.882 100.099 1.153 2.333
105.361 100.992 1.482 2.219
91.5 91 90.254 1.425 1.913
91.123 95.140 2.135 2.069
85.112 97.735 1.385 1.827
82.759 90.598 1388 1.778
77.906 86.432 1.316 1.750
75.858 84.007 1.273 1.795
72.660 81.598 1.261 1.757
70.298 78.404 1.357 1.715
141
City of Ham Lake
Principal Property Taxpayers
Current Year and Nine Years Ago
(Unaudited)
Table 8
2022 2013
Percentage Percentage
of Total of Total
Tax City Tax Tax City Tax
Taxpayer Type of Business Capacity Rank Capacity Capacity Rank Capacity
Flamingo Terrace Inc Mobile Home Park $ 127,468 1 0.52% $ 95,238 2 7.10°/o
Copart of Connecticut Inc� Commercial ll2,474 2 0.46%
Xcel Energy Utility 107,298 3 0.44°/a
Majestic Greens LLC� Aparhnent 89,361 4 0.36%
Minnegasco Inc Utility 87,834 5 0.36% 58,762 5 0.44%
CBN Enterprises LLC Industrial 79,988 6 032°/o
CF Majesric Oaks Arcis LLC Commercial/Golf Course 72,546 7 0.29%
Storage World Inc Commercial 71,523 8 0.29°/o
Mickman Limited Liability Partnership Commercial 66,000 9 0.27%
Elk Investments LLC Industrial 47,244 10 0.19% 45,816 9 034%
Connexus Energy Utility 156,066 1 1.16%
CNL Income Eagle North Golf LLC3 Golf Course 62,606 3 0.47%
P&R Enterprises LLC Industrial 60,474 4 0.45%
Crosstown Shopping Center Inc Commercial 57,942 6 0.43%
Woodland Development Inc Developer 52,503 7 0.39%
Glen Harstad Industrial 46,788 8 035%
Northern States Power Co. Industrial 41,230 10 0.31%
Totals $ 861,736 3.50°/o $ 677,425 5.05°/o
Notes:
� Majestic Greens Apartments-Owned by Woodland Development Inc.in 2008
�Copart of Connecticut Ino-Moved from#14 in 2015 to#6 in 2016 by purchasing an additional parcel and combining the two parcels
3 Majesric Oaks Golf Club-Owned by CNL Income Eagle North Golf LLC in 2008
Source: Anoka County Property Records and Taxation
142
City of Ham Lake
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited)
Table 9
Collected within the
Fiscal Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Ended forthe Percentage in Subsequent Percentage
December 31, Fiscal Year Amount of Levy Years Amount of Levy
2013 $ 4,087,023 $ 4,036,697 98.77% $ 47,372 $ 4,084,069 99.93%
2014 4,217,428 4,174,450 98.98% 39,716 4,214,166 99.92%
2015 4,335,280 4,291,661 98.99% 38,383 4,330,044 99.88%
2016 4,465,338 4,438,155 9939% 23,626 4,461,781 99.92%
2017 4,593,101 4,568,453 99.46% 19,761 4,588,214 99.89%
2018 4,797,978 4,793,239 99.90% - 4,793,239 99.90%
2019 4,930,453 4,893,749 99.26% - 4,893,749 99.26%
2020 5,066,994 5,018,896 99.05% - 5,018,896 99.05%
2021 5,218,342 5,200,943 99.67% 17,399 5,218,342 100.00%
2022 5,600,859 5,581,262 99.65% 5,428 5,586,690 99.75%
Source: Anoka County property tac settlements
143
City of Ham Lake
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Unaudited)
Table 10
Governmental Activities
General Special Total Percentage of Debt
Fiscal Obligation Assessment Outstanding Personal Per
Year Bonds� Bonds Debt Income2 Population3 Capita
2013 $ 2,070,000 $ - $ 2,070,000 0.34% 15,650 $ 132.27
2014 1,955,000 - 1,955,000 0.32% 15,666 124.79
2015 1,825,000 - 1,825,000 0.28% 15,773 115.70
2016 1,918,360 - 1,918,360 0.26% 15,891 120.72
2017 1,737,534 - 1,737,534 0.22% 15,891 109.34
2018 1,551,010 - 1,551,010 0.18% 16,528 93.84
2019 1,363,788 - 1,363,788 0.17% 16,706 81.63
2020 1,175,868 - 1,175,868 015% 16,464 71.42
2021 987,948 - 987,948 0.12% 16,489 59.92
2022 789,348 - 789,348 0.10% 16,489 47.87
Notes: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements.
The City has no business-type activities
� Presented net of original Issuance discounts and premiums.
� Personal income is disclosed on Demographic and Economic Staristics table.
3 Population data which is used to calculate the per capita debt and is found on the Demographic
144
City of Ham Lake
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
(Unaudited)
Table 11
Percentage of
General Less:Amounts Actual Taxable
Fiscal Obligation Available in Debt Value Per
Year Bonds� Service FundZ Total of Property 3 Capita 4
2013 $ 2,070,000 $ 164,396 $ 1,905,604 016% 123.08
2014 1,955,000 187,562 1,767,438 0.14% 114.13
2015 1,825,000 191,648 1,633,352 0.12% 104.76
2016 1,918,360 226,167 1,692,193 0.12% 106.49
2017 1,737,534 239,519 1,498,015 0.10% 94.27
2018 1,551,010 247,956 1,303,054 0.08% 78.84
2019 1,363,788 257,125 1,106,663 0.06% 66.24
2020 1,175,868 261,316 914,552 0.05% 55.55
2021 987,948 277,513 710,435 0.03% 43.09
2022 789,348 290,910 498,438 0.02% 30.23
Notes: Details regarding the Ciry's outstanding debt can be found in the Notes to the Financial Statements.
The City has no business-type activitics
� Net of original issuance discounts and premiums.
� This is the amount restricted for debt service principal payments.
3 See Assessed Value and Estimated Actual Value of Taxable Property for property value data.
4 Population data can be found in the schedule of Ratios of Outstanding Debt by Type.
145
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146
City of Ham Lake
Direct and Overlapping Governmental Activities Debt
As of December 31,2022
(Unaudited)
Table 12
Estimated
Share of
Estimated Direct and
Debt Percentage Overlapping
Governmcntal Unit Outstanding Applicable Z Debt
Debt Repaid with Property Taxes:
Anoka Counry'a $ 44,435,000 5.309°/o $ 2,359,268
Metropolitan Council�b 6,285,000 5.309% 333,671
Anoka Hennepin School Dish-ict No. 11 �` 245,055,000 7.766% 19,031,612
Forest Lake School District#831 �� 157,255,000 6.918°/o 10,878,795
Subtotal,Overlapping Debt 32,603,345
City Direct Debt 789,348
Total Direct and Overlapping Debt $ 33,392,693
Notes: Overlapping debt is the debt of governments that coincide,at least in part,with the geographical
boundaries of the City. This schedule esrimates the parrion of the outstanding debt of those
overlapping governments that is borne by the residents and businesses of Ham Lake. This
process recognizes that,when considering the Ciry's abiliry to issue and repay long-term debt,the
entire burden borne by the residents and businesses should be taken into account.
�a Estimated general obligation as pf 12-31-22,excluding general obligation tax and aid
anticipation certificates and revenue supported debt.
�b Estimated general obligation debt as of 12-22-31,excluding general obligation debt supparted by
wastewater revenues and housing rental payments.Includes certificates of participation.
�`Estimated general obligation as pf 12-31-22.
Z The estimated percentage applicable is calculated by dividing the total net adjusted tax capaciry
for the taxing authority by the total net adjusted tax capaciry that lies within the City's boundaries
Source: Anoka County Property Records and Taxation
147
City of Ham Lake
Legal Debt Margin Information
Last Ten Fiscal Years
(Unaudited)
Fiscal Years
2013 2014 2015 2016 2017
Debt Limit $ 39,579,372 $ 39,766,062 $ 44,408,880 $ 46,081,605 $ 49,201,782
Total Net Debt
Applicable to Limit 2,070,000 1,955,000 1,825,000 1,918,360 1,737,534
Legal Debt Margin $ 37,509,372 $ 37,811,062 $ 42,583,880 $ 44,163,245 $ 47,464,248
Total Net Debt Applicable
to the Limit as a
Percentage of Debt Limit 5.23% 4.92% 4.11% 4.16% 3.53%
Notes: Minnesota statutes limit the debt that a city can incur to 3%of the market value of taxable property in the city.
However,there are many exceptions to the type of debt that is included in the limit. The result of these limits
is that,with only a few exceptions,general obligation bonds payable solely from ad valorem property taxes are
the only debt subject to the debt limit. The legal debt limit has nothing to do with the practical debt limit of a city.
Additional information regarding the City's debt can be found in Note 5 of the financial statements.
148
Table 13
Legal Debt Margin Calculation for the Fiscal Year 2022
Estimated Market Value $ 2,338,397,100 '
Debt Limit(3%of Estimated Market Value) 70,151,913
Debt Applicable to Limit:
789,330.00
789,330
Legal Debt Margin $ 69,362,583
Fiscal Years
2018 2019 2020 2021 2022
$ 52,652,682 $ 56,679,879 $ 59,575,146 $ 64,310,112 $ 70,151,913
1,551,010 1,363,788 1,175,868 987,948 789,348
$ S1,lO1,672 $ 55,316,091 $ 58,399,278 $ 63,322,164 $ 69,362,565
2.95% 2.41°/a 1.97°/a 1.54% 1.13%
187,920 187,920 198,600
149
City of Ham Lake
Demographic and Economic Statistics
Last Ten Calendar Years
(Unaudited)
Table 14
Per
Capita
Calendar Number of Personal Personal Unemployment
Year Population Households Income 3 Income � Rate Z
2013 15,650 5,323 $ 570,458,150 $ 36,451 4.4%
2014 15,666 5,329 563,443,356 35,966 3.8%
2015 15,773 5,358 596,913,412 37,844 3.6%
2016 15,891 5,406 641,328,978 40,358 3.9%
2017 15,891 5,406 673,714,836 42,396 3.2%
2018 16,528 5,459 726,240,320 43,940 3.2%
2019 16,706 5,651 805,078,846 48,191 3.l%
2020 16,464 5,718 774,878,160 47,065 53%
2021 16,489 5,748 829,759,458 50,322 2.8%
2022 16,489 5,748 829,759,458 50,322 3.0%
Notes: �Per capitapersonal income estimates are from May 2023 from the Metropolitan Council
Community Profile of Ham Lake and includes data from the Decennial Census and American
Communiry Survey.Years 2013-16 and 2021 have been restated to reflect data from this
source.The Per capita personal income for 2022 was not available and is 2021 estimate.
All dollar estimates are in current dollars(not adjusted far inflation).
Z Unemployment rates are the December rate for Anoka County(not seasonally adjusted).
3 Personal income is calculated by multiplying the per capita personal income
by the population of the City.
Sources: Estimates of population and number of households,for 2012-2021 are provided by
the Metropolitan Council. Per capita personal income is provided by the U.S.Department of
Decennial Census,and American Community Survey
Unemployment rates are provided by the Minnesota Department of Employment
and Economic Development
I5�
City of Ham Lake
Principal Employers
Current Year and Nine Years Ago
(Unaudited)
Table 15
20223 2013
Esrimated Percentage Esrimated Percentage
Number of of Total Ciry Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Mickman Brothers Ina � 250 1 6.20% 240 1 7.62%
Majestic Oaks 225 2 5.58% 190 2 6.03%
Air Mechanical Inc. 138 3 3.42% 103 4 3.27%
QC Companies 125 4 3.10% 95 5 3.02%
Ceco Concrete Construcrion l08 5 2.68%
DaVinci Academy 104 6 2.58%
Cool Air Mechanical 100 7 2.48%
I.S.D.No. 11 (Anoka-Hennepin)� 85 8 2.11% 90 6 2.86%
Jam Hops Gymnastics,Inc. 85 8 2.1 l%
North Anoka Control Systems 50 9 1.24%
Micron Metalworks 48 10 1.19% 44 10 1.40%
Fleetwood 48 10 1.19%
Measurement Specialiries 4 ll 0 3 3.49%
Caribou Technologies 67 7 2.13%
Fairchild Equipment 47 8 1.49%
T&J Concrete&Masonry,Inc 44 9 1.40%
Notes: �Includes full-time,part-time,and seasonal employees
2 Includes school district employees working in the City of Ham Lake only
3 Current information far 2022 is based off the survey completed by the Ciry in 2017;therefore,
amounts shown are as of 12/31/2017.
4 Formerly RDT Company
Sources: Survey last conducted by City of Ham Lake Staff 2017
Metropolitan Council and Minnesota Department of Employment and Economic Development
I51
(THIS PAGE LEFT BLANK INTENTIONALLY
152
City of Ham Lake
Full-time Equivalent City Employees by Function/Program
Last Ten Years
(Unaudited)
Table 16
Full-time Equivalent Employees for the Year
Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government
Administration and City Clerk 2.2 2.3 1.9 1.8 1.6 2.0 2.0 2.5 2.1 2.3
Finance 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.4 2.0 2.0
Planning 1.0 1.0 1.0 1.0 1.0 1.0 0.7 0.8 0.9 0.7
Cable Operator 0.1 0.1 0.1 0.1 01 01 0.1 - - -
Recycling - - - - - - - - 0.1 0.1
Public Safety
Fire 1.9 l.8 l.5 1.7 1.9 2.0 2.0 l.2 23 2.0
Building Inspection 23 2.1 2.4 2.6 2.8 3.5 3.9 4.1 3.7 3.9
Parks&Recreation
Parks Department 2.8 2.5 2.2 1.8 1.9 3.1 2.9 2.6 2.0 1.5
Public Warks 5.8 6.4 6.4 6.1 6.4 4.5 6.2 5.4 6.3 6.1
Total Average Full-Time Equivalents 18.1 l 8.2 17.5 l 7.1 17.7 18.2 18.7 l 8.0 19.2 18.6
Full-Time Employees at Year-End 16 16 16 16 17 16 16 16 18 17
Notes: FTEs for hourly employees are determined by dividing hours worked by 2080 or 2088 hours,depending upon the number of working days in the year.
Salaried employees are counted as 1 FTE each.
The Administrator started a phased retirement in 2013,working 20 hours per week
The part-time building inspector was made full time in 2012,and an on-call building inspector was hired for 2012 and 2013,due increased building activity in the City.
The on-call building inspector was made full time in 2014.
A third administrative assistant was hired in October 2017.
The City employs seasonal workers for the public warks and parks departments,as well as on-call snowplow drivers.
Fire department FTEs do not include paid on-call fire fighters. They are reported in the Schedule of Operating Indicatars by Function/Program.
Elected officials and appointed commissioners are not included in these numbers.
The Ciry contracts with the Anoka County Sheriff s Office for police protection.
A Full-Time Finance Director was hired in 2020.
Part-time Fire Inspector was hired in 2021 and farmer Chief helped train new Fire Chief.
Started tracking Recycling hours for grant purposes in 2021.
Source: City of Ham Lake Finance Department payroll records
153
City of Ham Lake
Operating Indicators by Function/Program
Last Ten Years
(Unaudited)
Fiscal Ycars
Function/Program 2013 2014 2015 2016
General Government
General Elections
No.of Registered Voters 10,027 10,995
No.ofPersons Voting 6,108 9,420
Percent of Registered Voters Voting 60.9% 85.7%
No.of Election Judges 54 75
Public Safety
Fire Department
No.of Paid On-Call Firefighters 34 34 36 37
No.of Emergency Responses 420 428 425 426
No.of Structure(House)Fires 12 8 6 4
No.of Fire Inspections 144 145 124 118
Police Protection
Patrol Service-Hours per Day 36 36 36 36
No.of FTE Deputies 7.60 7.60 7.60 7.60
No.of FTE Investigator� - - - -
No.of Radio Calls for Service 5,841 5,303 not available 6,351
Building Inspection and Planning
No.of Building Permits Issued
New Homes 57 56 56 67
New Commercial 1 3 3 1
Other 1,100 1,153 1,357 1,305
Estimated Value of Permits $ 17,319,745 $ 18,141,838 $ 19,413,851 $ 20,223,061
Building Inspections Completed 2,270 2,575 2,776 3,357
Parks
Hours Spent on Oak Wilt Control 549 573 399 257
Hours Spent Mowing 611 719 687 785
Park Rentals-Ham Lake Park 156 161 144 147
Park Rentals-Lions Park 10 15 12 19
Public Works
Lane Miles Plowed and Maintained 301.92 303.72 304.38 308.80
Hours Spent Plowing Streets 1,953 1,798 635 681
Hours Spent Sweeping Streets � 441 255 411 374
Notes: There were no general elections in 2013,2015,2017,2019 and 2021.
The Ciry contracts with Anoka County SherifFs Department far police protection.
The City does not plow or maintain Highway 65 or county roads.
The City's streets and roads are two lanes,so lane miles equal the number of linear miles plowed times two.
� The Ciry also contracted for street sweeping in 2014-2017 and 2021-2022.
Z An Investigator was added to the Anoka County Sheriffs Department Contract in 2022
Source: T�arious City departments and Anoka County Sheriffs Office
154
Table 17
Fiscal Years
2017 2018 2019 2020 2021 2022
10,922 9,710 11,590
8,029 9,264 8,458
73.5% 95.4% 73.0%
67 71 77
35 35 38 34 40 35
447 506 431 238 429 435
4 5 27 19 9 14
114 124 13 2 89 229
36 36 36 36 36 36
7.60 7.60 7.60 7.60 7.60 7.60
- - - - - 1.00
6,456 6,694 8,061 6,108 7,237 6,031
61 66 67 63 67 63
6 1 2 4 3 2
1,660 1,519 666 1,579 1,602 1,369
$ 23,515,764 $ 20,815,344 $ 22,584,378 $ 31,812,743 $ 29,287,029 $ 27,427,200
2,913 3,212 3,413 2,965 4,000 4,022
93 126 162 22 62 48
1,504 1,467 503 1,307 858 762
140 138 132 6 23 30
11 12 9 8 18 10
313.00 324.88 314.40 327.00 33538 33738
663 1,402 2,348 1,216 1,223 1,699
276 339 330 493 457 327
1SS
City of Ham Lake
Capital Assets by Function/Program
Last Ten Years
(Unaudited)
Fiscal Years
Function/Program 2013 2014 2015 2016
General Govemment:
Cell Tower Sites 3 3 3 3
Public Safety:
Fire Department:
Fire Stations 2 2 2 2
Police Protection:
Sheriffs Substation 1 1 1 1
Public Works:
Miles of Roads and Streets:
Municipal State Aid Streets 27.77 27.82 28.15 28.68
Local Roads and Streets 12319 124.04 124.04 125.72
Total Roads and Streets 150.96 151.86 152.19 154.40
Parks&Recreation
Parks information:
Number of Developed Parks 19 19 19 20
Number of Undeveloped Parks 7 10 10 10
Miles of Developed Trails 2.45 2.45 2.45 2.45
Number of Ball Fields 15 15 15 15
Number of Basketball Courts 6 6 6 6
Number of Parks with Playground Equipment 14 14 15 16
Skateboard Park 1 1 1 1
Skating Rinks 1 1 1 1
Park Maintenance Building 1 1 1 1
Disk Go1f Course 9 holes 9 holes 18 holes 18 holes
Notes:
General Government:
Cell tower sites: The City owns the land and leases the tower sites to private companies,who construct the towers
and manage the tenants.The original site is narth of City Hall.The City purchased land for a second tower site in 2007.
A third tower site was developed on the future Fire Station 3 land in 2009.
Public Safety:
In 2006,the City purchased land on which to build Fire Station 3.There are currently were no plans for construction
of Station 3.
Public Works:
Municipal state aid streets are those for which the City received state aid for construction and receives annual state
aid for maintenance. The City has no water or sewer infrastructure.
Parks and Recreation:
The parks and recreation function includes city parks and a senior center which is located in the lower level of City Hall.
The Ham Lake Senior Center,Inc.uses the space.The City provides limited administrative support to the Senior Center.
Park land(or money in lieu of park land)is donated to the City when the final plats of new developments are filed.
Money received in lieu of park land is used to develop or improve city parks.The City entered into a joint powers
powers agreement with Anoka County in 1996 for use of the ball fields located in Ham Lake Park.The park was
deeded to the City by Anoka County in 2005.The Ciry constructed a skateboard park in Lions Park and a
park maintenance building in Ham Lake Park in 2005,an outdoor skating facility with lights in Ham Lake Park in
2006,and a 9-hole disc golf course in Ham Lake Park in 2007. The course was expanded to 18 holes in 2009.
The back 9 holes were closed in 2012 due to vandalism and were re-opened in 2015.The City installed
playground equipment in Fox Run Park in 2015,and developed Bluegrass Estates Park and installed playground
equipment in 2016.The City installed playground equipment in Constance Estates Park and Lund's Creek Park in
2020.The City installed playground equipment in Red Fox Hollow in 2021.
Source: Public Works Superintendent, City Engineer,Park and Tree Commission Master Plan
156
Table 18
Fiscal Years
2017 2018 2019 2020 2021 2022
3 3 3 3 3 3
2 2 2 2 2 2
1 1 1 1 1 1
29.03 33.65 28.81 34.10 35.23 35.71
127.47 128.79 128.39 129.40 132.46 132.98
156.50 162.44 157.20 163.50 167.69 168.69
20 20 20 20 20 21
10 10 10 10 10 10
2.45 2.45 2.45 2.45 2.45 2.45
IS IS 15 15 15 IS
6 6 6 6 6 6
16 16 16 18 18 18
1 1 1 1 1 1
1 1 1 1 1 1
1 1 1 1 1 1
18 holes 18 holes 18 holes 18 holes 18 holes 18 holes
157