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06-09-2025 City Council Agenda and PacketA.5:30 P.M. - WORK SESSION Note: Unless otherwise noted, work sessions are held in the Fountain Conference Room in the lower level of City Hall and are open to the public. If the City Council does not complete the work session items in the time allotted, the remaining items will be considered after the regular agenda. Public comment is not allowed at the work session. A.1 Santa Vera Development Proposal Discussion A.2 Commercial Vehicle Parking Discussion A.3 Road Construction Update A.4 Future Work Session Schedule B.7:00 P.M. - CALL TO ORDER (Pledge of Allegiance) C.PUBLIC ANNOUNCEMENTS D.CONSENT AGENDA All items listed under the Consent Agenda are considered to be routine by the city council and will be considered as one motion. There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and considered separately. City council action is based on the staff recommendation for each item. Refer to the council packet for each staff report. D.1 Approve City Council Meeting Minutes dated May 12, 2025 D.2 Approve City Council Work Session Minutes dated May 12, 2025 D.3 Approve City Council Meeting Minutes dated May 19, 2025 D.4 Approve City Council Work Session Minutes dated May 19, 2025 D.5 Receive Planning Commission Minutes dated May 6, 2025 AGENDA CHANHASSEN CITY COUNCIL MONDAY, JUNE 9, 2025 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 D.6 Receive Planning Commission Minutes dated May 20, 2025 D.7 Receive Commission on Aging Minutes dated March 21, 2025 D.8 Receive Commission on Aging Minutes dated April 18, 2025 D.9 Receive Park and Recreation Commission Minutes dated March 25, 2025 D.10 Receive Park and Recreation Commission Minutes dated April 22, 2025 D.11 Approve Claims Paid dated June 9, 2025 D.12 Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 6551 Kirkwood Circle. D.13 Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 3861 Stratford Ridge. D.14 Approve Contract for Replacement of Public Works Salt Shed Canvas Cover D.15 2025 Fleet Purchases - Bucket Truck D.16 Approve Purchase: Outdoor Furnishings for City Hall and Senior Center D.17 Approve Contract: Public Safety communication equipment for new City Hall D.18 Approve Appliance Purchase for New City Hall and Senior Center D.19 Approve Temporary Liquor License, Hackamore Brewing, SummerFest on June 21, 2025 D.20 Resolution 2025-XX: PERA Police and Fire Resolution E.VISITOR PRESENTATIONS Visitor Presentations requesting a response or action from the City Council must complete and submit the Citizen Action Request Form (see VISITOR GUIDELINES at the end of this agenda). E.1 Nick Gardino Citizen Action Request E.2 State of the Library Presentation F.PUBLIC HEARINGS F.1 Resolution 2025-XX: Frontier Trail Association - Easement Agreement and Easement Vacation G.GENERAL BUSINESS G.1 Resolution 2025-XX: Authorizing the Issuance and Awarding Sale of $13.185M GO Temporary Sales Tax Revenue Bonds, Series 2025A. G.2 Ordinance XXX: Amending Chapter 1 and Chapter 20 Regulating Detached Accessory Dwelling Units 2 H.COUNCIL PRESENTATIONS I.ADMINISTRATIVE PRESENTATIONS J.CORRESPONDENCE DISCUSSION K.ADJOURNMENT GUIDELINES FOR VISITOR PRESENTATIONS Welcome to the Chanhassen City Council Meeting. In the interest of open communications, the Chanhassen City Council wishes to provide an opportunity for the public to address the City Council. That opportunity is provided at every regular City Council meeting during Visitor Presentations. Anyone seeking a response or action from the City Council following their presentation is required to complete and submit a Citizen Action Request Form. An online form is available at https://www.chanhassenmn.gov/action or paper forms are available in the city council chambers prior to the meeting. A total of thirty minutes is alloted for Visitor Presentations. Priority is given to Chanhassen residents. An additional thirty minutes may be provided after General Business items are complete at the discretion of the City Council. Anyone indicating a desire to speak during Visitor Presentations will be acknowledged by the Mayor. When called upon to speak, state your name, address, and topic. All remarks shall be addressed to the City Council as a whole, not to any specific member(s) or to any person who is not a member of the City Council. If there are a number of individuals present to speak on the same topic, please designate a spokesperson that can summarize the issue. Limit your comments to five minutes. Additional time may be granted at the discretion of the Mayor. If you have written comments, provide a copy to the Council. Comments may also be emailed to the City Council at council@chanhassenmn.gov. During Visitor Presentations, the Council and staff listen to comments and will not engage in discussion. Council members or the City Manager may ask questions of you in order to gain a thorough understanding of your concern, suggestion or request. Please be aware that disrespectful comments or comments of a personal nature, directed at an individual either by name or inference, will not be allowed. Personnel concerns should be directed to the City Manager. Members of the City Council and some staff members may gather at Tequila Butcher, 590 West 79th Street in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. 3 City Council Item June 9, 2025 Item Santa Vera Development Proposal Discussion File No.Item No: A.1 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Sam DiMaggio, Economic Development Manager Reviewed By SUGGESTED ACTION No action; discussion only. Motion Type N/A Strategic Priority Development & Redevelopment SUMMARY The City Council has previously discussed the Santa Vera Proposal with Headwaters Development, most recently during the work session on May 5, 2025. Since that time, Headwaters has taken the feedback received during the work session and revised its proposal. No formal application has been submitted by the developer at this time. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 4 No recommendation, discussion only. ATTACHMENTS Headwaters Chanhassen Santa Vera Apartments Santa Vera Site Revised Site Plan 5 413 ft²Unit B7-Garage381 ft²Unit A1-Garage318 ft²Unit B2-Garage96 ft²Unit B7 - Stairs413 ft²Unit B7-Garage381 ft²Unit A1-Garage318 ft²Unit B2-Garage96 ft²Unit B7 - Stairs413 ft²Unit B7-Garage92 ft²Unit B7 - Stairs413 ft²Unit B7-Garage381 ft²Unit A1-Garage318 ft²Unit B2-Garage96 ft²Unit B7 - StairsMECH797 ft²Unit A1797 ft²Unit A1797 ft²Unit A1A5202A5203SD_3214SD_3211SD_3212SD_3213SD_3225SD_3222SD_3223SD_3224724 ft²Unit A3 - Type A699 ft²Unit A3 Type A-Garage805 ft²Unit B71,221 ft²Unit B21,221 ft²Unit B21,221 ft²Unit B21,221 ft²Unit B2A5202A5203SD_3214SD_3211SD_3212SD_3213SD_3225SD_3222SD_3223SD_3224805 ft²Unit B7805 ft²Unit B7805 ft²Unit B7NotEnclosedUnit B7AA5201A5202A5204A5203SD_3214SD_3211SD_3212SD_3213SD_3225SD_3222SD_3223SD_3224278 ft²Unit B7-Mezzanine278 ft²Unit B7-Mezzanine278 ft²Unit B7-Mezzanine278 ft²Unit B7-Mezzaninekaas wilson architectsWildwoodChanhassen Santa Vera12-Unit Building (12A) - Floor Plans1/8" = 1'-0"1Level 1 - 12-Unit Building1/8" = 1'-0"2Level 2 - 12-Unit BuildingResidential Unit Mix - 12-Unit Building (12A) - 8 Buildings on SiteNameGarageStallsCountHUD Gross Square Footage HUD Net Rentable Square Footage RoomsUnitTypeMainFloorMezzanine StairsGarageAreaTotal UnitGrossTotal GrossAreaMainFloorNetStairsNetMezzanineNetGarageNetTotalUnit NetTotal NetAreaBed BathLevel 1Unit A1 1 3 797 ft² 0 ft² 0 ft² 381 ft² 1,178 ft² 3,535 ft²740 ft² 0 ft² 0 ft² 339 ft² 1,079 ft² 3,237 ft² 1 1 Type BUnit A3 - Type A 1 1 724 ft² 0 ft² 0 ft² 491 ft² 1,215 ft²1,215 ft² 675 ft² 0 ft² 0 ft² 454 ft² 1,129 ft² 1,129 ft²1 1 Type ALevel 2Unit B2 1 4 1,221 ft² 0 ft² 92 ft² 318 ft² 1,631 ft² 6,524 ft² 1,153 ft² 68 ft² 0 ft² 289 ft² 1,510 ft² 6,040 ft² 2 2 -Unit B7 1 4 805 ft² 278 ft² 96 ft² 413 ft² 1,592 ft² 6,369 ft² 758 ft² 76 ft² 235 ft² 368 ft² 1,437 ft² 5,748 ft² 2 2 -Grand total 1217,643 ft²16,154 ft²1/8" = 1'-0"3Level 3 Copy 1 - 12-Unit Building (12A) 6 Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9"4.17.37.77.37.84.17.37.77.37.8High Truss Brg.130'-4 7/8"7.6 EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 2,048 SF = 56%-STONE VENEER = 738 SF = 20%-GLAZING = 591 SF = 16% -DOORS = 275 SF = 8% 7.37.77.37.7Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9"7.626.17.37.76.17.67.37.76.17.6High Truss Brg.130'-4 7/8" EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 645 SF = 39%-STONE VENEER = 461 SF = 27%-GLAZING = 180 SF = 11% -DOORS = 390 SF = 23% 7.6Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9"7.37.77.66.126.17.64.17.37.77.66.1High Truss Brg.130'-4 7/8" EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 645 SF = 39%-STONE VENEER = 461 SF = 27%-GLAZING = 180 SF = 11% -DOORS = 390 SF = 23% 7.37.67.3Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9"7.64.17.37.77.37.37.77.37.87.84.1High Truss Brg.130'-4 7/8"7.37.77.37.7 EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 2,048 SF = 56%-STONE VENEER = 738 SF = 20%-GLAZING = 591 SF = 16% -DOORS = 275 SF = 8% EXTERIOR MATERIALS TAG KEY5.1ALUMINUM RAILINGS - COLOR: BLACK4.1CULTURED STONE - COLOR: TBD5.3METAL RAILING - COLOR: BLACK6.1CEDAR TIMBER - COLOR: STAINED7.5PVC SKIRTBOARD - COLOR: WHITE7.1LAP SIDING - COLOR: SW 7006 EXTRA WHITE7.3BOARD & BATTEN SIDING - SW 7006 EXTRA WHITE7.4TRIM - COLOR: SW 7006 EXTRA WHITE7.6ASPHALT SHINGLES - COLOR: CHARCOAL26.1EXTERIOR LIGHTING - COLOR: BLACK8.1VINYL WINDOW - COLOR: BLACK7.7DECORATIVE 12"x36" LOUVER - COLOR: BLACK5.4PREFINISHED ALUMINUM GUTTERS & DOWNSPOUTS -COLOR: WHITEkaas wilson architectsWildwoodChanhassen Santa Vera12-Unit Building (12A) - Exteriors3/16" = 1'-0"112-Unit Building (12A) - Front Elevation Copy 13/16" = 1'-0"212-Unit Building (12A) - Side Elevation 1 Copy 13/16" = 1'-0"312-Unit Building (12A) - Side Elevation 2 Copy 13/16" = 1'-0"412-Unit Building (12A) - Back Elevation Copy 1 7 612-Unit Building - 3D Exteriors - 1712-Unit Building - 3D Exteriors - 2kaas wilson architectsWildwoodChanhassen Santa Vera12-Unit Building (12A) - 3D Views 8 SD_3413SD_3414SD_3411SD_3412413 ft²Unit A2-Garage381 ft²Unit A1-Garage318 ft²Unit B2-Garage318 ft²Unit B2-Garage381 ft²Unit A1-Garage413 ft²Unit C4-Garage797 ft²Unit A1797 ft²Unit A1403 ft²Unit A4-Garage355 ft²Unit A2-Garage 3355 ft²Unit A2-Garage 3855 ft²Unit A4413 ft²Unit A2-Garage381 ft²Unit A1-Garage318 ft²Unit B2-Garage318 ft²Unit B2-Garage381 ft²Unit A1-Garage413 ft²Unit C4-Garage797 ft²Unit A1403 ft²Unit A4-Garage855 ft²Unit A412797 ft²Unit A1SD_3413SD_3414SD_3411SD_34121,221 ft²Unit B21,221 ft²Unit B21,660 ft²Unit C4813 ft²Unit A2813 ft²Unit A21,221 ft²Unit B21,221 ft²Unit B21,660 ft²Unit C4813 ft²Unit A2813 ft²Unit A212kaas wilson architectsWildwoodChanhassen Santa Vera16-Unit Building - Floor Plans1/8" = 1'-0"1Level 1 - 16-Unit Building1/8" = 1'-0"2Level 2 - 16-Unit BuildingResidential Unit Mix - 16-Unit Building (16A) - 3 Buildings on SiteNameGarageStallsCountHUD Unit Gross Square Footage HUD Net Rentable Square Footage RoomsUnitTypeMainFloorStairsGarageAreaTotal UnitAreaTotal AreaMainFloorStairs Garage Net TotalTotal NetAreaBed BathLevel 1Unit A1 1 4 797 ft² 0 ft² 381 ft² 1,178 ft² 4,713 ft² 740 ft² 0 ft² 339 ft² 1,079 ft² 4,316 ft² 1 1 Type BUnit A4 1 2 855 ft² 0 ft² 385 ft² 1,240 ft² 2,479 ft² 798 ft² 0 ft² 346 ft² 1,144 ft² 2,288 ft² 1 1 Type BLevel 2Unit A2 1 2 813 ft² 96 ft² 412 ft² 1,321 ft² 2,642 ft² 753 ft² 83 ft² 337 ft² 1,173 ft² 2,346 ft² 1 1 -Unit A2 1 2 813 ft² 96 ft² 373 ft² 1,282 ft² 2,564 ft² 753 ft² 83 ft² 352 ft² 1,188 ft² 2,376 ft² 1 1 -Unit B2 1 4 1,221 ft² 92 ft² 318 ft² 1,631 ft² 6,524 ft² 1,148 ft² 86 ft² 287 ft² 1,521 ft² 6,084 ft² 2 2 -Unit C4 1 2 1,660 ft² 96 ft² 412 ft² 2,168 ft² 4,335 ft² 1,502 ft² 76 ft² 337 ft² 1,915 ft² 3,829 ft² 3 2 -Grand total 1623,257 ft²21,239 ft²9 Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9" EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 645 SF = 39%-STONE VENEER = 461 SF = 27%-GLAZING = 180 SF = 11% -DOORS = 390 SF = 23% 6.17.67.77.34.17.626.16.17.67.77.3Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9"6.17.67.77.34.17.626.16.17.67.77.3 EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 645 SF = 39%-STONE VENEER = 461 SF = 27%-GLAZING = 180 SF = 11% -DOORS = 390 SF = 23% Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9"7.37.37.77.626.14.15.14.126.17.37.37.77.626.1 EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 2,118 SF = 48%-STONE VENEER = 1,005 SF = 23%-GLAZING = 662 SF = 15% -DOORS = 590SF = 14% Level 1100'-0"Level 2110'-7 7/8"Truss Brg.119'-9" EXTERIOR MATERIALSPRIMARY MATERIALS-FIBER CEMENT SIDING/TRIM = 2,125 SF = 49%-STONE VENEER = 1,188 SF = 27%-GLAZING = 795 SF = 18% -DOORS = 275SF = 6% 7.67.37.37.77.67.37.37.74.17.626.14.14.17.37.24.17.37.24.14.1kaas wilson architectsWildwoodChanhassen Santa Vera16-Unit Building - Exteriors3/16" = 1'-0"116-Unit Building- Side Elevation 23/16" = 1'-0"216-Unit Building - Side Elevation 13/16" = 1'-0"316-Unit Building - Front Elevation13/16" = 1'-0"416-Unit Building - Back Elevation1 10 kaas wilson architectsWildwoodChanhassen Santa Vera16-Unit Building - 3D Views116-Unit Building - 3D Exteriors - 1216-Unit Building - 3D Exteriors - 2 11 DRAWING KEY EXISTING SITE ENTRY LAND USE SUMMARY SITE NET ACRES : 3.85 AC TOTAL RESIDENTIAL UNITS: 46 PROPOSED ADDITIONAL SITE ENTRY GRILL STATION DOG RUN STORMWATER BASIN 1 3 3 4 4 5 5 2 SANTA VERA APARTMENTS & TOWNHOMES DEVELOPMENT PLAN CHANHASSEN, MN MAY 29, 2025 measure EXISTING 18 UNIT APARTMENT BUILDING CITY CENTER PARK SANTA VERA DRIVESARATOGA DRIVE DEL RIO DRIVELAREDO DRIVE1 2 1 12 City Council Item June 9, 2025 Item Commercial Vehicle Parking Discussion File No.Item No: A.2 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Rachel Jeske, Planner Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY Kerber Boulevard is the only street in the City of Chanhassen that allows overnight parking for commercial vehicles. The length of time that parking is permitted on the street is currently limited to 48 hours by City Code Section 12-53. The City Council has the authority, by City Code Section 12-13, to designate no parking, stopping, or standing zones by resolution. These limitations can be placed on any public road. The no parking designation can be limited to certain hours (i.e. overnight) or it can apply at all times. BACKGROUND Commercial vehicle parking is a topic that has previously been addressed at a City Council Work Session on September 25, 2023. See enclosed meeting minutes for reference. DISCUSSION 13 BUDGET RECOMMENDATION ATTACHMENTS 09-25-2023 City Council Work Session Minutes 14 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES SEPTEMBER 25, 2023 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman Schubert, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Eric Maass, Planning Director; Charlie Howley, Public Works Director/City Engineer; Rick Rice, IT Manager; Jerry Ruegemer, Park and Recreation Director; Ari Lyksett, Communications Manager; Kelly Grinnell, Finance Director; Samantha DiMaggio, Economic Development Manager; Rachel Arsenault, Associate Planner; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Dustin Phillips, Kraus-Anderson Dan Kjellberg, Kraus-Anderson Bryan Harjes, HKGi Paul Michell, BKV Group Scott Caron, Ballard King Kevin Clarke, HKGi 2024 PRELIMINARY BUDGET AND LEVY Finance Director Kelly Grinnell reviewed the background history of previous budget work session discussions. Updated revenues, expenditures, and fund balance of the preliminary 2024 General Fund Budget were presented. Mayor Ryan asked the council for their input on whether to approve setting a preliminary levy amount of 7.4% or lower. The council concurred that the preliminary levy should be set at 7.4%. CHANHASSEN CIVIC CAMPUS UPDATE Dustin Phillips of Kraus-Anderson presented the schematic design and budget development to date, reviewed the overall budget, reviewed estimate breakouts, discussed the value management exercise, reviewed a high-level budget summary, and discussed the next steps. The budget is currently $1.4 million above the initial budget. Factors that contributed to the increase were the stairs/elevator at the park building, the stage/porch at the park building, and an increase in city hall size by 1,000 square feet. The resulting question to the council was if they wanted to match the concept budget or expand the budget to accommodate project desires. Mayor Ryan asked the council for their initial thoughts on the increase to the budget. Councilman von Oven asked if the stage/porch at the park building wasn’t in the original concept. Mr. Phillips replied that it was not. Mayor Ryan added that the stage was a priority over the park building elements, and that the stairs and elevator needed to be part of the building due 15 City Council Work Session Minutes – September 25, 2023 2 to costs. Bryan Harjes reviewed the elevator scenarios. Paul Michell discussed the right sizing of the heated sidewalk. Mayor Ryan asked about the addition of 1,000 square feet to the city hall building and where the changes were. Mr. Michell responded the 1,000 square feet were distributed throughout all the floors in the amount of approximately 300 square feet per floor. The parking level was discussed, including the number of stalls needed. Councilwoman Schubert asked about the playground costs. Councilman von Oven asked for clarification of the value management sheet. Councilman Kimber expressed concern about what should be sacrificed to lower the budget. Mayor Ryan agreed and needed additional information as far as options, along with some time to review and digest the tradeoffs. Councilman Kimber requested additional information on the costs of the changes. Mr. Michell discussed the building material options and that alternatives could be presented to reduce the budget. City Manager Laurie Hokkanen clarified that the council needs to decide whether it is more important to stay with the concept plan budget or if cuts should be made. Ms. Hokkanen responded that the levy would need to increase an additional half a percent in 2025 and a tenth of a percent in 2026 if the project costs are increased. Councilman Kimber asked if future levies could be smoothed to accommodate the increase. Ms. Grinnell responded that it could be done, but something else would need to be cut. Councilman von Oven observed that future levies would still be in the sevens and that people might not remember if the number was 7.3 or 7.8. He appreciated the term “value engineering” and that we should take a hard look at the entire scope of the project and determine what brings the city the most value. Mayor Ryan would like to continue the value engineering process by reviewing all the park features and their associated costs and understanding the value of each component. Councilman Kimber agreed. Councilman von Oven added that having that list of contingencies would be helpful. Councilman McDonald expressed concern that the exterior building materials of city hall shouldn’t be sacrificed for the sake of the entire civic campus. Ms. Hokkanen thanked the council for their feedback and direction and asked the council to confirm that the heated sidewalk element should remain a part of the project. Mayor Ryan responded that from the feedback she has received from senior citizens, it is a priority. Mr. Phillips reviewed the next steps to continue to analyze the design, estimates, and budget and meet again at the end of design development in December. Kraus-Anderson, BKV, and HKGi will work with staff on a bid package schedule at the start of design development. CITY COUNCIL ROUNDTABLE Mayor Ryan discussed commercial vehicle parking adjacent to residential areas, specifically regarding a complaint of a semi parked along Kerber Boulevard from a resident in an adjoining neighborhood. Public Works Director/City Engineer Charlie Howley responded that Kerber Boulevard is a Municipal State Aid (MSA) street and the requirements for the city to receive funding for an MSA route, the city may restrict truck parking on the street; however, trucks must be allowed to drive on the street. The council discussed the issue and agreed not to move forward with this item. Mayor Ryan will respond to the resident. Councilman McDonald brought up Sewer Availability Charges (SAC) and whether the city can assist businesses with these fees. Mayor Ryan agreed and has asked Ms. Hokkanen to direct the Building Official to review and evaluate SAC and WAC fees at the first of the year. The council concurred. 16 City Council Work Session Minutes – September 25, 2023 3 Mayor Ryan recessed the work session at 6:55 p.m. Mayor Ryan reconvened the work session at 9:50 p.m. LOT COVER DISCUSSION Public Works Director/City Engineer Charlie Howley presented an update to the July 24, 2023, Work Session discussion on whether the maximum lot cover percentage should be increased from 25% in the Residential Single-Family (RSF) district. Mr. Howley reviewed the reasons behind the request and presented two options for the City Council to consider: Option 1: Raise allowable lot cover in all RSF-zoned areas from 25% to 30%; or Option 2: Raise allowable lot cover in all RSF-zoned areas from 25% to 30%, subject to conditions. Regardless of the option chosen, the implementation schedule would be the same, and the change would become effective January 1, 2024. Mr. Howley asked for the City Council’s input and direction. The City Council asked questions of staff and discussed both options, then recommended Option 2 with conditions to include a permit fee of $100 and require Best Management Practices BMPs). LAKE ANN PARK PRESERVE UPDATE Park and Recreation Director Jerry Ruegemer introduced Mr. Kevin Clarke from HKGi, who presented a PowerPoint of the Lake Ann Park Preserve Implementation Project. The project update included the background, design, cost estimates, and next steps. The current project objectives include advancing the design to the 60% level, fitting the project to complex regulatory and construction requirements, determining the extent of the 2024 project based on budget/timing feasibility, developing construction documents, permitting, bidding the project in the fall/winter to begin work in the winter, and completing the priority project in 2024. Mr. Clarke also reviewed project tasks and schedule, including available grants. The current focus is on prioritizing the boardwalk engineering and trail/parking design for 2024 construction. Future enhancements that will likely occur in 2025 include signage and wayfinding, interpretation, natural resources, and natural surface trails. Mr. Clarke next reviewed project tasks, cost estimates, and Phase 1 determination, which includes three priorities: 1) boardwalks, 2) trail and parking lot paving, and 3) trail reconstruction to the north. Funding sources and uses were identified, and the project task schedule was presented. Mr. Clarke asked the City Council if they had any questions and to provide clarifications and key priorities. City Manager Laurie Hokkanen stated that, historically, constructing the Lake Ann Park Preserve has been a key priority of the City Council and distributed a document showing possible funding options to finance the priorities in Phase 1 of the project. Mayor Ryan thanked Mr. Ruegemer and Mr. Clarke for the presentation, then asked the City Council for their input on the priorities for bidding on the project. The City Council discussed 17 City Council Work Session Minutes – September 25, 2023 4 the project and concluded that Phase 1 of the project should move forward to include all three priorities. FUTURE WORK SESSION SCHEDULE October 9, 2023 Chanhassen Civic Campus – City Council Update October 23, 2023 November 13, 2023 Presentation of Preliminary 2024 Utility Fund Budgets and 2024-2028 CIP SAC Policy Discussion November 27, 2023 Final Review of Proposed 2024 Levy, Budgets, and CIP for all funds December 11, 2023 City Council Roundtable The work session adjourned at 10:55 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk 18 City Council Item June 9, 2025 Item Road Construction Update File No.Item No: A.3 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By SUGGESTED ACTION Discussion Only Motion Type N/A Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 19 City Council Item June 9, 2025 Item Future Work Session Schedule File No.Item No: A.4 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Laurie Hokkanen, City Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY The City Council is tentatively scheduled to hold the following work sessions: June 23, 2025 2026 Budget Kick-off discussion Hwy 7 Corridor Coalition Update 6440 Hazeltine Blvd. Sketch Plat (apartment project) Chanhassen Bluffs Community Center workshop with BKV and RJM July 14, 2025 July 28, 2025 Hwy 5 discussion (Pedestrian underpass at Hwy 41) 20 Pending items: Sign Code updates Chanhassen Bluffs Community Center planning workshops Elections Pleasantview Rd. project planning BACKGROUND Staff or the City Council may suggest topics for work sessions. Dates are tentative until the meeting agenda is published. Work sessions are typically held at 5:30 p.m. in conjunction with the regular City Council meeting, but may be scheduled for other times as needed. DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 21 City Council Item June 9, 2025 Item Approve City Council Meeting Minutes dated May 12, 2025 File No.Item No: D.1 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Meeting minutes dated May 12, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends that the Chanhassen City Council approves the City Council Meeting minutes dated May 12, 2025. 22 ATTACHMENTS City Council Meeting minutes dated May 12, 2025 23 CHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES MAY 12, 2025 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember Schubert, Councilmember von Oven, and Councilmember Kimber. COUNCIL MEMBERS ABSENT:None. STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works Director/City Engineer; George Bender, Assistant City Engineer; Andrew Heger, Fire Chief; Andrea McDowell-Poehler, City Attorney; and Jenny Potter, City Clerk. PUBLIC PRESENT: Sara Thomas, 2555 Long Acres Drive Linda Paulson Michael Placko, 403 Del Rio Drive Michael Ewasiuk PUBLIC ANNOUNCEMENTS: Road Construction Update Charlie Howley, Public Works Director/City Engineer, provided an update about the Galpin Boulevard Road Construction Project. He stated there were unforeseen challenges, and they are directing the developer to reopen the Fawn Hill intersection. He said that they heard from MnDOT about solutions on Highway 41. Mayor Ryan commented that there was a grass fire on Highway 41, so a part of it was recently closed. 1. Presentation of 2025 Arbor Day Poster Contest Winners Mayor Ryan congratulated the winners of the 2025 Arbor Day Poster Contest. She thanked the participants for their work. She presented certificates to those who participated in the contest and recognized the grand prize winner. 2. Recognizing Maud Duggan as the Chanhassen Rotary 2025 Distinguished Service Award recipient 24 City Council Minutes – May 12, 2025 2 Mayor Ryan recognized Maud Duggan for her various community service activities. She congratulated her as the recipient of the Chanhassen Rotary 2025 Distinguished Service Award. Maud Duggan thanked the Chanhassen Rotary Members for their teamwork and collaboration to help with community service. CONSENT AGENDA: Councilmember McDonald moved, Councilmember von Oven seconded that the City Council approve the following consent agenda items 1 through 9 pursuant to the City Manager’s recommendations: 1. Receive Planning Commission Minutes dated April 8, 2025 2. Receive Planning Commission Minutes dated April 15, 2025 3. Approve Claims Paid dated May 12, 2025 4. Consider Preliminary Plat and Final Plat application for Chanhassen Bluffs 5. Award Design Contract for Rehabilitation of Wells 8 and 11 6. Sale of Wetland Banking Credits from Chanhassen’s Wetland Bank #127 to BWSR 7. Authorize Construction Services Contract for Rain Gardens associated with the 2024 Pavement Rehabilitation Project City Project 24-01 8. Approve Minor Planned Unit Development (PUD) Amendment to Chanhassen Retail Center Planned Unit Development (Planning Case 2025-09) 9. Ordinance 744: Amending Chapter 1 and Chapter 20 Regulating Attached and Internal Accessory Dwelling Units All voted in favor, and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. Sara Thomas, 2555 Long Acres Drive, read an email she sent to Mayor Ryan and city staff in May 2024 with several concerns about the Galpin Road project. She commented that it was difficult to exit their neighborhood during peak traffic hours. She expressed fear of an accident. She did not understand why they could not have traffic control and asked why a temporary stop light would not be permitted by MnDOT. She stated that the Fawn Hill solution was great, but it would be nice to have additional measures taken for Highway 41. Mayor Ryan stated that she would follow up with Ms. Thomas after the meeting. 25 City Council Minutes – May 12, 2025 3 Linda Paulson thanked them for the massive amount of work going into 2501. She requested deer crossing signs near the conservancy. She provided two sets of photos of a deer and fawn and a heron. She thanked Bolten & Menk for their great work on the open house. She discussed ADUs. She stated that the citizens elected the City Council, and one city employee should not make decisions. She commented that the City Council should make decisions so that there would be representative government. FIRE DEPARTMENT/LAW ENFORCEMENT UPDATES. 1. Quarterly Fire Department & 2024 Annual Report Overview Fire Chief Andrew Heger updated the Council about the calls for service for Quarter One for the Fire Department. He reviewed the different trainings that took place during the first quarter and thanked the city staff and the developer for allowing them to utilize the hotel for training before the demolition. He discussed the new initiative for the Home Fire Safety Inspection, which would provide a detailed report of the best practices to reduce fire risks for residents. He said that this initiative would be formally launched this summer. He discussed the violation types for inspection to see which violations they see most often. He reviewed the CPR training and First Aid classes, and the additional events they attended and reviewed staffing changes. He discussed the different hours that the staff spent on fire calls and training during 2024. He highlighted the technology implementation, which optimized and enhanced their efforts. Mayor Ryan thanked the Fire Department for all the work that they do. She thanked Fire Chief Andrew Heger for his service to the community. PUBLIC HEARINGS. 1. Resolution 2025-36: Accept the Bids and Award the Contract for the 2025 City Pavement Rehabilitation Project; and Resolution 2025-37: Adopt Final Assessment Roll for the 2025 City Pavement Rehabilitation; and Resolution 2025-38: Approving the Establishment and Execution of the Volunteer Rain Garden Program Associated with the 2025 City Pavement Rehabilitation Project George Bender, Assistant City Engineer, introduced Dave Martini from Bolten & Menk who was representing the project. He reviewed the project schedule, noting that the contractor wanted to begin on May 19th, with substantial completion for November 2025. He explained the proposed project areas for the project, which included Conestoga Area, Frontier Trail, Highland Drive, Kiowa Circle, Del Rio Drive, and Iroquois. He explained the scope of the scope of the project and described the Rain Garden Partnership Opportunity and the Private 1/1 Rehabilitation and Grant Opportunity. He summarized the public engagement for the project and noted that the list of engagement opportunities continues to grow. He provided an overview of the bid results and stated that Ryan Contracting Co. had the lowest bid amount and that the company previously 26 City Council Minutes – May 12, 2025 4 performed satisfactory project work on similar projects with Bolten & Menk. He reviewed a typical range provided for single-family average residential assessments for each rehabilitation type and stated that the preliminary assessment amounts to the final assessment amounts were improved, which created flat amounts for Frontier Trail Rehabilitation Area for the FDR and Recon area. He stated that the assessment policy was changed on May 5, 2025, so the city would assess forty percent unless the flat rate amount set by the fee schedule is used and the benefiting properties based on the driveway access to the street network are selected to be assessed. He noted that the private streets which meet City Code requirements were not assessed. He summarized the project costs per budgetary fund and stated that the project was under budget overall. He explained the initial construction schedule, which would start with tree-clearing work on May 19th pending project approval, but he said that the main change would be coordinating the project improvement near the school to take place during the school break. He summarized the themes of the different public feedback, which included concerns with assessments, traffic, construction sequencing and preliminary scheduling, residential access during construction, tree removal, and replacement concerns, private I/I program, and the volunteer rain garden program. He explained different traffic considerations, which included an evaluation for the installation of a mini-roundabout at Frontier and W. 77th Street and an included bump out along Frontier north of the intersection at 77th Street, installing two driver feedback signs, and the pruning of overgrowth. He described that the different tree replacements and final landscaping restoration would be determined during construction. He explained the rain garden program which provided $2500 credit to property owners and a 50 percent reduction in the annual Surface Water Fee. He described the new private property I/I grant program which was approved by the State Legislature last session and allowed the city to partner with property owners to provide financial assistance to repair the private side sewer lateral based on the need to reduce I/I. Mayor Ryan asked how the final assessment rule worked when they were still discussing it with the Homeowners Association. Andrea McDowell-Poehler, City Attorney, answered that if there were changes, it would come forward with another public hearing process. Mayor Ryan opened the public hearing. Michael Placko, 403 Del Rio Drive, stated he did not understand all the assessment policy. He wondered if he was being assessed fairly. He reviewed the previous assessment information from his neighbors’ properties. He stated he walked Great Plains when there was no road, which made it seem like it seemed like a full reconstruction project. Those properties were assessed $6200 for their project, which was approximately $3000 less than his current project assessment. He stated that the Great Plains project seemed similar to the current project, so he did not understand the differences in the costs. He expressed concerns about the previous concerns with the Great Plains project and said he only had one exit from their neighborhood, so he was worried that the project would be similar. He stated that he needed to have access to his driveway to charge his vehicle. He asked if the city compared the costs of the project with other cities for similar projects since the assessment prices in Chanhassen seemed to be higher. 27 City Council Minutes – May 12, 2025 5 Michael Ewasiuk noted that he was representing Frontier Trail Association. He stated that they were objecting to the assessment since there was no benefit for the property owners. He noted that they were in discussion with the city staff. He said he was objecting but had no specific question. Mayor Ryan closed the public hearing. Mayor Ryan asked about the fairness of the assessment policy. Mr. Bender said that Chanhassen was not the lowest assessment policy, but it was not the highest policy. He stated that the questions were not uncommon, and they tried to answer them as well as they could. He said the project areas can have different costs because of specific project costs. He said that some areas have more or less density, which can impact assessment. He said that the previous reconstruction project had more density, but this one has less density. He said that reconstruction was the most intrusive and the most challenging rehabilitation technique, which added up to the costs. Mr. Howley said that comparing it to last year it got a little murky. He said that there was a subsidy for both years to keep the costs lower. He stated that the projects stand-alone, but some projects are different with the density and scope of the project. He commented that the city was subsidizing a portion of the costs. Mayor Ryan asked Councilmember McDonald to discuss fairness related to the assessment policy based on historical data. Councilmember McDonald discussed the 60-40 assessment policy, which went back at least twenty years. He said that some cities do not assess streets, but it is paid for by other funding mechanisms. He stated that Eden Prairie utilizes funding from liquor stores to help pay for roads. He discussed the previous conversations with franchise fees to help cover assessment costs, which was not feasible because there was an unfairness since previously completed projects might want their money back. He stated that there was continual discussion with the city Council about fairness, but there was not a good answer. He said that the best way to move forward was to continue with the current policy to be equal. He stated that they did not want to increase property taxes to pay for the projects. The City Council considered the flat fee because the price of the road projects continued to increase, and it was getting out of hand. The staff looked at other cities’ policies and determined that a flat rate was the best option. The city would have to subsidize some costs. He commented that Frontier Trail had older roads, so they knew it would be expensive, which is what brought about the conversation about the franchise fees. He stated various factors determined the costs of the road. He stated that the City Council continued to battle with the uniqueness of each project, which made it difficult to eliminate the costs to residents. He encouraged the residents to send suggestions to the city staff if they think of other options. 28 City Council Minutes – May 12, 2025 6 Mayor Ryan said that the concern was real in terms of access. Mr. Bender said that they asked residents if they had an electric vehicle. He said that there would be times when they could not provide access to residents’ driveways, but the contractor must provide access to the individual properties as much as was feasible. He stated that driveways would most often not be available during the day. He discussed that the difficulty would be with concrete since it needed time to cure, but the concrete work would be coordinated. He said that there were inconveniences with construction projects. He discussed how Del Rio provided additional challenges since it was a cul-de-sac, but there would be additional street parking and communication with residents about the projects. Mr. Placko said that there was no overnight parking on the streets in Chanhassen. He said he expected to pay some costs for the project, but closer to $6000. Mr. Bender answered that prohibited overnight parking was a winter regulation. Mayor Ryan voiced appreciation to the city staff for being responsive to the residents. Councilmember von Oven voiced appreciation for the continued outreach to residents for the assessment policies. Councilmember von Oven moved, Councilmember Schubert seconded that the Chanhassen City Council adopt a resolution accepting the bids and awarding a contract, and also adopt a resolution adopting the assessment roll for the 2025 City Pavement Rehabilitation Project No. 25-01, and adopts a resolution approving the establishment and execution of the Volunteer Rain Garden Program associated with the 2025 City Pavement Rehabilitation Project. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS.None. COUNCIL PRESENTATIONS.None. ADMINISTRATIVE PRESENTATIONS. 1. Pioneer Ridge Tree Removal Update (Planning Case #25-01) Laurie Hokkanen, City Manager, said that they were not moving forward with the tree removal for the Pioneer Ridge project, since the federal regulations did not apply to the project. She stated that they were doing the best they could to understand the federal regulations. CORRESPONDENCE DISCUSSION. 1. 4th of July Parade Update 29 City Council Minutes – May 12, 2025 7 2. First Quarter 2025 Economic Development Activity Report Councilmember Kimber moved, Councilmember Schubert seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:30 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 30 City Council Item June 9, 2025 Item Approve City Council Work Session Minutes dated May 12, 2025 File No.Item No: D.2 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Work Session Minutes dated May 12, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends that the Chanhassen City Council approves the City Council Work Session minutes dated May 12, 2025. 31 ATTACHMENTS City Council Work Session minutes dated May 12, 2025 32 1 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES May 12, 2025 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT:Mayor Ryan, Councilmember von Oven, Councilmember Kimber, Councilmember McDonald, Councilmember Schubert COUNCIL MEMBERS ABSENT: STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works Director/City Engineer; Andrew Heger, Fire Chief; Patrick Gavin, Communications Manager; Jerry Ruegemer, Parks Director; Eric Maass, Community Development Director; Jenny Potter, City Clerk PUBLIC PRESENT: Detached Accessory Dwelling Unit Draft Ordinance Review Eric Maass, Community Development Director, presented a revised draft ordinance that would allow detached ADUs in the A2, RR, and RSF zoning districts through a conditional use permit process. Council specifically requested additional detail on parcel sizes within the Residential Single Family (RSF) district to help assess how minimum lot size requirements might affect eligibility. The City Council recommended allowing detached ADUs on parcels zoned Residential Single Family but which have a minimum lot size of 1.0 acres (43,560 square feet). Mr. Maass said the proposal would be taken to the Planning Commission for review and then back to the City Council for possible adoption at a June City Council meeting. Fire Department Staffing Update Andrew Heger, Fire Chief, provided a comprehensive update on the Fire Department’s staffing, response data, and future service needs. The presentation focused on five key areas: customer service, staffing plans, incident data, personnel levels, and facility limitations. It underscored the growing demands driven by the city’s population growth, aging residents, and increased reliance on emergency services, including those from specialized care facilities. Response time data, national benchmarks, and fire behavior models were shared to highlight the life-saving importance of rapid deployment, along with the health risks faced by firefighters. In response to Heger’s comments, council members recommended pursuing a staffing consultant to develop future staffing recommendations, identify future facility locations, and establish standards of coverage for the community. 33 City Council Work Session Minutes –May 12,2025 2 Mayor Ryan recessed the work session at 6:57 P.M. Mayor Ryan reconvened the work session at 8:36 P.M. City Council Roundtable The City Council had a roundtable discussion. Mayor Ryan adjourned the work session at 8:54 P.M. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 34 City Council Item June 9, 2025 Item Approve City Council Meeting Minutes dated May 19, 2025 File No.Item No: D.3 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Meeting minutes dated May 19, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends that the Chanhassen City Council approves the City Council Meeting minutes dated May 19, 2025. 35 ATTACHMENTS City Council Meeting minutes dated May 19, 2025 36 CHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES MAY 19, 2025 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember Schubert, Councilmember von Oven, and Councilmember Kimber. COUNCIL MEMBERS ABSENT:None. STAFF PRESENT: Laurie Hokkanen, City Manager; Maass, Community Development Director; Charlie Howley, Public Works Director/City Engineer; and Jenny Potter, City Clerk. PUBLIC PRESENT: Linda Paulson Kate Kirschbaum A young resident who lives in Chanhassen PUBLIC ANNOUNCEMENTS: 1. Invitation to Memorial Day Ceremony – May 26, 2025 Mayor Ryan invited residents to the Memorial Day Ceremony to honor those who have died in service to the United States of America. 2. National Public Works Week (NPWW) Mayor Ryan read the Public Works Week Proclamation. She invited the Public Works staff to pose for a photo and thanked them for all of the work they do that goes unrecognized in the community. 3. Junior Girl Scout Troop 18645 – Presentation on Bronze Award: Bat Boxes Kate Kirschbaum introduced Troop 18645. The girl scouts gave information on bat boxes and explained why bats need help. Mayor Ryan thanked the Junior Girl Scout Troop for presenting their information. She stated that they would continue to find people to take the bat homes. She thanked them for participating in Girl Scouts. 37 City Council Minutes – May 19, 2025 2 4. Eagle Scout Presentation – Pollinator Garden in the Chanhassen Olson Community Garden Lance McClintock, Eagle Scout Member of Troop 330, explained how he remodeled the Pollinator Garden at the Chanhassen Olson Community Garden. He reviewed how he collaborated with local businesses to secure sponsorships to fund the materials for the garden. Mayor Ryan thanked Lance McClintock for the work he completed. CONSENT AGENDA: Councilmember McDonald moved, Councilmember Kimber seconded that the City Council approve the following consent agenda items 1 through 12 g to the City Manager’s recommendations: 1. Approve City Council Minutes dated May 5, 2025 2. Approve City Council Work Session Minutes dated May 5, 2025 3. Approve Claims Paid dated May 19, 2025 4. Approve Programmatic Maintenance Agreement with Minnehaha Creek Watershed District for public stormwater management facilities, wetland buffers, and waterbody crossings and structures 5. Approve the Final Plat and Development Contract for Pleasant View Pointe 6. Approve Purchase of Networking Equipment for the New City Hall 7. Approve 2025 Chanhassen Farmers’ Market Agreement 8.Resolution 2025-39:Approve Cooperative Agreement with MnDOT for the Trunk Highway 41 Roundabout Project at Minnetonka Middle School West 9.Resolution 2025-40:Approve Construction Materials Testing Agreement for Construction of the 2025 Pavement Rehabilitation Project No. 25-01 10.Resolution 2025-41:Accept 2025 Community Events Sponsorship Donations from Area Businesses 11.Resolution 2025-42:Approve Construction Materials Testing Agreement for Construction of the Crimson Bay Road Project No. 23-02 12.Adopt Ordinance 745: Right-of Way Management All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 38 City Council Minutes – May 19, 2025 3 VISITOR PRESENTATIONS. A young lady from Chanhassen stated that she disagreed with the fact that there would be more apartments built near Chanhassen Elementary. She said that they are impacting nature and animals, which is important. Mayor Ryan thanked her for sharing her thoughts and noted that the plan had been put on hold. Linda Paulson thanked the City Council for the excellent presentation on Highway 5. She thanked the young lady for sharing her concerns. She expressed concerns about Auxiliary Dwelling Units. She commented that they would increase the density with Auxiliary Dwelling Units, which would impact nature. She stated that Chanhassen would start to look like Minneapolis and be crammed. She stated that she would like to keep her milkweed plants and not have Auxiliary Dwelling Units near her lot. PUBLIC HEARINGS. 1. Approve On-Sale Intoxicating Liquor License with Sunday sales for Hope Chanhassen LLC, DBA The Hope Breakfast Bar Chanhassen, located at 464 Lake Drive East, Suite 100 Jenny Potter, City Clerk, explained that Hope Chanhassen LLC, DBA, requested an On-Sale Intoxicating Liquor License with Sunday Sales. She explained that they sent out a public notice on May 8, 2025, and received no feedback. The projected opening date was June 14, 2025. Jefferey Bornmann introduced himself and expressed his excitement to be back in the Chanhassen community. Mayor Ryan welcomed The Hope Breakfast Bar to Chanhassen. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilmember Schubert moved, Councilmember von Oven seconded that the Chanhassen City Council approve the request for an On-Sale Intoxicating Liquor License with Sunday sales for Hope Chanhassen, LLC, DBA The Hope Breakfast Bar Chanhassen, located at 464 Lake Drive East, Suite 100. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 2. Adopt Ordinance 746: Amending the 2025 Fee Schedule 39 City Council Minutes – May 19, 2025 4 Charlie Howley, Director of Public Works/City Engineer, explained the background discussion regarding the consideration to amend the Chanhassen Fee Schedule to include the newly adopted flat rate street assessment amounts. He summarized the fee rates and the flat rate schedule. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilmember Kimber moved, Councilmember von Oven seconded that the Chanhassen City Council adopt Ordinance 746: Amending the 2025 Fee Schedule and approve a resolution authorizing the publication of a summary ordinance as presented. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. 3. Avienda Townhomes Plat – Outlot E Drainage and Utility Easement Vacation Charlie Howley, Director of Public Works/City Engineer, displayed a map showing the vacation request for the Avienda Townhomes Plat. He explained that they were vacating the easement due to Outlot E due to the future Chanhassen Bluffs project. He noticed that they received no comments to date on the item. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilmember von Oven moved, Councilmember McDonald seconded that the Chanhassen City Council adopt a Resolution Approving the vacation of the drainage and utility easement over OUTLOT E, AVIENDA TOWNHOMES, CARVER COUNTY, and adopt the Findings of Fact. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. GENERAL BUSINESS. 1. Consider Award of Construction Contract for the MMSW Roundabout Project Charlie Howley, Director of Public Works/City Engineer, reviewed the purpose of the project to implement safety improvements along State Highway 41 at the Middle School entry drive. He stated that the project was bid last week, but the City only received one bidder, which was 14.5 percent over the estimate. He stated that they held an open house last week on May 15, and attendees were not disappointed if the project did not move forward because of the budget shortfall, since the problem was alleviated with the school parking lot project. He reviewed the next steps for whether the contract would or would not be awarded. 40 City Council Minutes – May 19, 2025 5 Mayor Ryan said she contacted Superintendent Law about the construction project and noted that the City would likely not move forward. She said that the School District understood where the City would be coming from if they did not move forward due to the funding gap. She said that there were additional causes of concern on State Highway 41 at different locations, so the City would most likely not be at the place to cover the additional costs at the MMSW Roundabout location. Councilmember McDonald asked for additional information about how the school parking lot helped with the problem. Mr. Howley answered that the school did a parking lot reconstruction, so now the front parking lot is reserved for buses, and the parent drop-off point was moved. He said the parents were previously picking up students at a different location, which made the cues be out on the hill and State Highway 41. Councilmember McDonald asked if the reconstruction alleviated the problem of congestion. Mr. Howley said he had not received any comments about the congestion, and it was much improved. Councilmember McDonald asked what the roundabout would add. Mr. Howley answered that cars have to take a right when they leave the school, but the natural operation of a roundabout would create more gaps, so people could go south if they wanted to do so. He said it would also slow the speed of traffic on State Highway 41. Councilmember McDonald said he was in favor of seeing if the State wanted to do the project. Mayor Ryan said that the problem was not completely solved. She said that there has been an influx of parents bringing their kids to school since they often do not ride the bus. She said that the goal of the school was to get as many cars as possible in their parking lot and off State Highway 41. She stated that it was still a challenging area and would be a worthwhile project if there were not a budget shortfall. Councilmember McDonald did not think that the traffic was the problem of the City. Mayor Ryan said that she points residents in the direction of the State Legislators and the School District to address the problem. Councilmember Kimber said that he is in the parking lot often, dropping off his kids at school. He said that the problem was not fixed, but parents have accepted the fact that they cannot turn south on Highway 41. He stated that the State was so busy in the area that the City might need to maintain the sponsorship of the project. He said the project needed to move forward, but not at this time due to the budget shortfalls. He said that there needed to be a solution for the corridor. He said that the City Council should continue to serve as an advocate. 41 City Council Minutes – May 19, 2025 6 Councilmember von Oven asked if there was something specific about the project that bidders rejected since they only received one bid. Mr. Howley answered that it was a tough project because of the construction window. He said that there were three phases within the construction window. Councilmember von Oven asked about the LRIP and LPP, and the expiration dates. Mr. Howley said that the expiration date for the LRIP would be in June, so they would lose that funding. The MnDOT funds the LPP, and he said that there was another year, but the MnDOT expressed interest in helping explore ways to retain the funding. Councilmember Schubert said she did not want to spend money they did not have. Councilmember Schubert moved, Councilmember Kimber seconded that the Chanhassen City Council elect to not award a construction contract for the Minnetonka Middle School Roundabout due to non-competitive bids received and a project funding shortfall. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. COUNCIL PRESENTATIONS.None. ADMINISTRATIVE PRESENTATIONS. 1. Receive 2024 Community Development Annual Report and 2025 Department Work Plan Mayor Ryan thanked Community Development Director Maass for his hard work on the report. CORRESPONDENCE DISCUSSION. 1. Quarterly Financial Report 2. Letter to the United States Postal Service Requesting to add Chanhassen as an Acceptable City Name for ZIP Codes 55331 and 55318 Councilmember Schubert moved, Councilmember von Oven seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:02 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 42 City Council Item June 9, 2025 Item Approve City Council Work Session Minutes dated May 19, 2025 File No.Item No: D.4 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Work Session Minutes dated May 19, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends that the Chanhassen City Council approves the City Council Work Session minutes dated May 19, 2025. 43 ATTACHMENTS Work Session Minutes dated May 19, 2025 44 1 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES May 19, 2025 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember von Oven, Councilmember Kimber, Councilmember McDonald, Councilmember Schubert COUNCIL MEMBERS ABSENT: STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; Patrick Gavin, Communications Manager; Jerry Ruegemer, Parks Director; Eric Maass, Community Development Director; Kelly Grinnell, Finance Director; Danielle Washburn, Assistant Finance Director; Jenny Potter, City Clerk PUBLIC PRESENT: Tyler See, Abdo; Allison Streich, Executive Director of the Carver County Community Development Agency; Eric Johnson, Caver County; Dan Lonnes, Bolton and Menk 2024 Audit Presentation Kelly Grinnell, Finance Director, introduced Tyler See from Abdo Accounting. They presented the 2024 Audit and Annual Comprehensive Financial Report. This annual audit, conducted by the city’s independent auditor Abdo, is a key element of Chanhassen’s financial transparency and accountability. The audit evaluates the city’s financial statements for accuracy, compliance, and internal controls. This year’s presentation included updates on fund performance, debt levels and long-term fiscal sustainability. The audit process is a continuation of standard financial oversight and reflects the city’s strategic priority of financial sustainability. Mr. See said that one recommendation for the city is to research and resolve old escrow accounts. Councilmembers asked for clarification on the city’s water and stormwater funds, which are lower than expected due to three primary factors: a $1 million interfund loan to the Stormwater Fund from the Water Fund, significant capital spending on street reconstruction projects, and reduced revenue from last year’s unusually wet summer. Despite the lower balance, projections show that the fund will not go negative and should gradually recover over the next 10 years as stormwater fees increase annually by 15%. Staff emphasized that stormwater is often the most expensive and complex utility component of road projects due to strict permitting requirements. While developments contribute some surface water management fees based on acreage, these are limited and do not fully offset long-term stormwater costs. Council members suggested it may be time to revisit the fee formula to ensure it is aligned with current needs, especially as development continues. The City Council may consider workshopping future changes to stormwater funding policies to ensure ongoing sustainability without overburdening developers. 45 City Council Work Session Minutes – May 19, 2025 2 A recent windfall from the wetland bank sale was noted as a positive development that may help stabilize rates. Carver County CDA presentation on LAHA options Allison Streich, Executive Director of the Carver County Community Development Agency, presented to the City Council potential uses for Local Affordable Housing Aid (LAHA). Chanhassen received $126,855 in LAHA funds in 2024 and expects a similar amount in 2025. These funds come from a 0.25% metro-wide sales tax dedicated to supporting affordable housing initiatives. To date, the city has not allocated or spent any of these funds. This was the Council’s first formal discussion on how Chanhassen might use its LAHA allocation to support local housing needs. The Minnesota Department of Revenue defines a Qualified Housing Project as one that provides emergency rental assistance, financial support to nonprofit affordable housing providers, or funding for the development or rehabilitation of housing for low- to moderate-income households, specifically, those earning up to 115% of the median income for homeownership projects and up to 80% for rental projects. The proposed LAHA funding supports three main areas: homeownership assistance, rehab programs, and multifamily housing. The council indicated that rehab and homeowners' assistance programs would likely make the most sense in Chanhassen and agreed to discuss the topic in further detail at a later meeting. Hwy 5 Project Update and Joint Powers Agreement (JPA) Review Eric Johnson, Caver County, and Dan Lonnes, Bolton and Menk provided an overview of planned improvements and outlined areas of coordination required between the city and county. The City Council received an update on the Highway 5 Improvement Project and reviewed elements of a forthcoming Joint Powers Agreement (JPA) with Carver County. The next steps for the Highway 5 Improvement Project include finalizing two key agreements. One is a Joint Powers Agreement (JPA) that defines cost-sharing methods and outlines each party’s roles and responsibilities. The second is a cooperative agreement with MnDOT and partner agencies to document responsibilities for costs and for perpetual maintenance, with a recommendation to waive the formal municipal consent process. The Chanhassen Trunk Highway 41 (TH 41) pedestrian underpass is a new possible addition at W 78th St, which would provide a completed grade-separated crossing for pedestrians and cyclists beneath TH 41, improving regional trail connectivity and safety as part of a broader multi-agency transportation upgrade. The estimated total cost is $2.5 million, split evenly between the city and county. The city’s estimated share is $1.25 million. Next steps for the 46 City Council Work Session Minutes – May 19, 2025 3 project include drafting the underpass JPA by September 2025 and executing the cooperative agreement in fall 2025. The City Council asked for another follow-up work session to discuss this project in greater detail. Mayor Ryan adjourned the work session at 6:55 P.M. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 47 City Council Item June 9, 2025 Item Receive Planning Commission Minutes dated May 6, 2025 File No.Item No: D.5 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Senior Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Planning Commission minutes dated May 6, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Planning Commission minutes dated May 6, 2025 48 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES MAY 6, 2025 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chairman Eric Noyes, Steve Jobe, Jeremy Rosengren, Ryan Soller, Mike Olmstead, Dave Grover, and Katie Trevena. MEMBERS ABSENT: None. STAFF PRESENT: Rachel Arsenault, Associate Planner; Eric Maass, Community Development Director; and Rachel Jeske, Planner. PUBLIC PRESENT: John Gilbert 1641 Jeurissen Lane PUBLIC HEARINGS: 1. ORDINANCE XXX: AMENDING CHAPTERS 1 AND 20 REGULATING ATTACHED AND INTERNAL ACCESSORY DWELLING UNITS Rachel Jeske, Planner, stated that the purpose of the proposed ordinance amendment would amend the way that attached accessory dwelling units are reviewed by the city. She commented that they were currently permitted through a variance that is approved by the Planning Commission, but there was an increasing interest in accessory dwelling units (ADUs) for residents looking to age in place or to expand housing options for young adults. She reviewed the history of ADUs in Chanhassen, which was adopted in 1986. She said that since 1986, the city has received ten applications, all of which have been approved. She stated that the city ordinance requires a variance application to allow a single-family house to be used as a two-family home if the conditions in the City Code are met. She reviewed the ordinance proposal for attached and internal ADUs, which was drafted based on feedback from the Planning Commission and the City Council during work sessions. The ordinance proposal would allow internal or attached ADUs via a building permit. She reviewed the districts where the accessory dwelling units would be permitted. She reviewed the attached and internal ADU standards, noting that they may be separated from single-family dwelling units by a wall or a floor and may have a separate entrance. She said that they would need to be between 200 and 960 square feet and could only have one bedroom. She said that they could only have one accessory dwelling unit per lot and comply with the setback requirements with the principal structure setbacks, and that the stairways would need to be enclosed inside the home or be on the rear of the building. She commented that the height and impervious lot coverage must comply with the existing regulations. 49 Planning Commission Minutes – May 6, 2025 2 She stated that the accessory dwelling unit had to be secondary to the primary home and had to be architecturally compatible with the neighborhood and home. She noted that the utilities had to be expanded from the primary structure and that the property owner had to occupy at least one of the dwelling units on the zoning lot as their primary place of residence. She noted that the accessory dwelling units could not be used as a short-term rental as defined by the City Code and that the buildings must be constructed and maintained in compliance with the property maintenance requirements set forth in the City Code. Chairman Noyes asked if there were requirements for the bathroom as related to the accessory dwelling units. Ms. Jeske said that if the unit did not have a bathroom, it would not be an accessory dwelling unit. An accessory dwelling unit had to have a bathroom, bedroom, and kitchen. Commissioner Rosengren asked if the electrical code was a separate section of the code. Ms. Jeske answered that the City of Chanhassen did not conduct electrical inspections, but that was through the State of Minnesota. Commissioner Rosengren asked if the accessory dwelling unit could have a separate electrical run into the structure. Ms. Jeske requested that he elaborate on a separate service. Commissioner Rosengren asked if they could run a separate electrical service or would bring the electricity from the house. Ms. Jeske responded that they would most likely have to be on the same meter. Commissioner Rosengren said that someone considering an accessory dwelling unit might need to consider expanding their electric service. Ms. Jeske confirmed that it may be a requirement, but it would depend on that home's existing electric service capacity. Commissioner Trevena asked about the design and why it had to be approved by the Community Development Director. Ms. Jeske responded that the Community Development Director would have the final say on the architecture, which was noted to avoid extremes. She said that it would not be overly stringent. Commissioner Trevena clarified that there were no specific guidelines on whether they were compatible with the home. Chairman Noyes stated that it allowed for veto power. Commissioner Grover asked how anyone would know if they had an accessory dwelling unit if the outside of the house was not changed. He asked about the difference between an accessory dwelling unit and a separate living area in the basement. Ms. Jeske said that they would see someone doing this during the building permit process. She said that an internal accessory dwelling unit often had a separate entrance. Commissioner Rosengren asked about section nine, which said that the total for all accessory units could not be over 1000 square feet. Ms. Jeske said that the current standard for all 50 Planning Commission Minutes – May 6, 2025 3 accessory structures, including sheds and pool houses, could not go over 1000 square feet. An attached or internal accessory dwelling unit would be included in this 1000-square-foot cap as it is part of the principal structure. Commissioner Rosengren asked if a 200-foot shed would subtract from the 1000 square feet and allow for an 800-square-foot accessory dwelling unit. Ms. Jeske confirmed this information in the case of a detached accessory dwelling unit. Commissioner Soller asked how long-term renters could use accessory dwelling units. Ms. Jeske said that long-term rentals were not monitored by the city, but they do have the requirement for owner-occupancy, so one unit must be occupied by the property owner. Commissioner Soller clarified that the short-term rentals meant no Airbnb or VRBO, but long- term rentals were not specified. If an owner were living in the unit, they could rent out the accessory dwelling unit. Eric Maass, Community Development Director, stated that the City Council intended for the accessory dwelling units to be occupied by family members or relatives. The city does not regulate long-term rentals so the city would rely on receiving a complaint if an attached or internal ADU were being used as a long-term rental. Commissioner Soller asked if the intent was captured in the language. Mr. Maass responded that it was not included in there, but if the Planning Commission recommended it, they could include it. Chairman Noyes stated that if they included the language, it would set a level of expectation for someone planning to build an accessory dwelling unit. Commissioner Jobe asked if parking was an issue with any particular zoning structure. Ms. Jeske answered that the ordinance did not influence the existing parking requirements. She stated that the city requires two enclosed garage spots for a single-family dwelling unit. She commented that the required width must meet the width of the garage doors for a certain stretch. Chairman Noyes asked if there was a limit on how many cars you can have at a particular residence. Ms. Jeske responded that a property owner could have as many vehicles in their driveway as they desire, so long as those vehicles met city code. Chairman Noyes opened the public hearing. There were no public comments. Chairman Noyes closed the public hearing. Chairman Noyes asked about how people felt about the intent of the ADUs. Commissioner Rosengren said that specific language in the ordinance already started to address it, but they could add additional language. 51 Planning Commission Minutes – May 6, 2025 4 Chairman Noyes said that it would be helpful to add additional language. Commissioner Soller commented that he read one, two, and three and thought it was speaking to diversifying the housing stock and making more efficient use of the existing housing stock to provide alternative living options for all people, not just extended family members. He stated that he did not read anything that specified it was for extended family, and it seemed broader, which he was okay with. He said if the City Council intended to specify auxiliary dwelling units for extended family only, the Planning Commission would need to adjust the language. He asked for information about a variance being required. Ms. Jeske responded that a variance was currently required, but the ordinance was to change that to a building permit. She said that the staff could put standard conditions on a building permit, but sometimes there could be things that would fly under the radar and could be missed. She commented that it was the Planning Commission’s decision whether they wanted to change the language. Chairman Noyes said that they were not making a requirement that it be family, but they could put language to encourage the accessory dwelling units to be utilized for family to age in place. He said he did not want the ordinance to allow accessory dwelling units to be used for quick and easy rental properties. Commissioner Jobe asked if they could include the information about family in the definition of an accessory dwelling unit. Commissioner Trevena said she was hung up on the definition of family. She commented that she was nervous about keeping it limited to family. She asked if the concern was with the rental portion of the accessory dwelling units. Chairman Noyes said that they addressed short-term rentals, but they could not address long- term rentals. Commissioner Olmstead asked about the difference between a short-term rental and a long-term rental. Ms. Jeske responded that a short-term rental was any property rented for under thirty days, while a long-term rental was anything rented for over thirty days. Commissioner Olmstead asked if his neighbor has a room, bedroom, and bathroom in his basement that he rents out to a family friend to help get back on his feet, would be considered an auxiliary dwelling unit, and if it would limit someone by saying family only? Ms. Jeske recommended against incorporating language about family since it was broad and limiting. She said what was at the table was whether they wanted to include language about long-term rentals. Commissioner Rosengren said that the City Council seemed to want to tiptoe their way by limiting it to attached internal auxiliary dwelling units. He said that if someone was going to dedicate a portion of their internal structure, the individual would most likely feel comfortable with the renter. He understood the sensitivity to define who they would want to live there, but it did not seem possible to meet everyone’s expectations. 52 Planning Commission Minutes – May 6, 2025 5 Ms. Jeske said that since it was through a building permit, they would not ask who would live there. Chairman Noyes said he liked the spirit of what they were trying to do, but did not know if they could accomplish it without having a concrete and enforceable ordinance. Commissioner Rosengren noted that there was a maximum of one bedroom, which would impact how many people were living in the auxiliary dwelling unit. Commissioner Trevena asked if detached accessory dwelling units were approved if this would be the ordinance that would be amended. Ms. Jeske answered that the City Council was looking at a process to allow detached accessory dwelling units through a conditional use permit, which would have its own separate standards. Commissioner Trevena moved, Commissioner Jobe seconded that the Chanhassen Planning Commission recommends the adoption of the ordinance amending Chapter 1 and Chapter 20 regulating attached and internal accessory dwelling units. All voted in favor, and the motion carried unanimously with a vote of 7 to 0. 2. CONSIDER MINOR PLANNED UNIT DEVELOPMENT (PUD) AMENDMENT TO CHANHASSEN RETAIL CENTER PLANNED UNIT DEVELOPMENT (PLANNING CASE 2025-09) Ms. Jeske reviewed the location of the Chanhassen Retail Center Planned Unit Development. She said that the subject property in purple was Taco Bell. She stated that the land use designation was commercial. She explained that the reason for the request was that there were architectural standards that were outdated and did not fit with a lot of commercial architecture standards or large corporate standards. She displayed a typical design for a remodeled Taco Bell. She said that they were looking to amend to allow for painted surfaces and a parapet wall or a pitched roof. She explained that the design standards would be changed for all buildings in the unit, not just Taco Bell. She stated that they were striking through item ten, which required all buildings on the property to have a pitched roofline. Chairman Noyes asked if the proposed changes would have any downstream impacts on the other businesses on the property. Ms. Jeske answered that they were leaving the option in the ordinance to allow for a pitched roof or a flat roof with a parapet wall, which would block the view of equipment on the roof. She stated the only other change would be to allow for painted surfaces on the exterior. She commented that they were adding an option for accent materials, which provided flexibility for companies to comply with their corporate design standards. Commissioner Grover asked what the language read before replacing it with “throughout the planned unit development.” Ms. Jeske responded that it said, “located at the Target site.” 53 Planning Commission Minutes – May 6, 2025 6 Commissioner Soller said it looked like there were no comments from any other owners or operators within the Planned Unit Development. Ms. Jeske answered that they received no feedback. Commissioner Rosengren asked about the flat roof on Jersey Mike’s and Leeann Chin’s building. Ms. Jeske answered that those projects had been permitted prior to her time with the City and was unclear how those would have been approved under the existing PUD ordinance. Chairman Noyes opened the public hearing. There were no public comments. Chairman Noyes closed the public hearing. Chairman Noyes stated that he saw no long-term issues. Commissioner Soller commented that he would miss the old Taco Bell design but that more flexibility was better. Commissioner Olmstead moved, Commissioner Jobe seconded that the Chanhassen Planning Commission recommends the City Council adopt the proposed ordinance amending the Chanhassen Retail Center PUD Ordinance. All voted in favor and the motion carried unanimously with a vote of 7 to 0. 3. CONSIDER PRELIMINARY PLAT FOR CHANHASSEN BLUFFS COMMUNITY CENTER Rachel Arsenault, Associate Planner, reviewed the location that was to be replatted. She said that the future land use designation was office/commercial. She provided a reminder that Outlot E was earmarked for recreation or entertainment use and that the Senior Housing Complex was no longer anticipated. She reviewed the proposed plat and noted that there were three outlots. She presented a conceptual site plan. She commented that all seven criteria for subdivision review were met, and so were the code standards. Chairman Noyes said he understood what was going on with the 13-acre parcel. He asked why there were three lots and why they were in specific locations. Mrs. Arsenault responded that the outlot to the east side was potentially set for future development for other businesses but was kept as an outlot so it would come through a replatting process and the final plat process and site review. Eric Maass, Community Development Director, explained that the 2.0-acre outlot A was a stormwater pond that was deeded to the city. He said that the 2.2-acre Outlot C would be retained by Level Seven Development for future development, but the actual future development was unknown. He said that the developer would like to get a hotel developed on the 5.6 acre Outlot B, but they wanted to do a test fit. He said that the developer would like to do a car wash on the northwest corner. He commented that the outlots were sized appropriately to aid in development around the Chanhassen Bluffs Community Center. 54 Planning Commission Minutes – May 6, 2025 7 Chairman Noyes said the parking lot in the northwest corner of the 13 acres did not seem to have a delineation. He asked if that was intentional or for illustration purposes. Mr. Maass responded that the site plan was out of date but wanted to provide it as an example so they could see where the building would be located on the site. He said that the exact alignment of the parking and the main entrance would evolve. He said that the line on the site plan did shift, but he expected there to be shared parking with the future development. Chairman Noyes stated that they were doing this to provide extra levels of visibility for the community for the future development of these outlots. Mr. Maass answered that the outlots were expected to be developed in accordance with the Planned Unit Development. Commissioner Olmstead commented that he watched the City Council meeting and that they voted to enter into an agreement to buy the 13 acres and to accept the gift from the developer. He asked if the Planning Commission was looking to divide it into the different parcels. Mr. Maass answered that the city had to define the location of the 13 acres, and the plat was the mechanism to do that. Commissioner Soller said he wanted to understand the process level. He said that the data required information about the land, soil conditions, and susceptibility to erosion, and wondered if he should expect to see more research and data to support the finding. He asked if it was contained in a previous analysis of the physical characteristics of the site or if he should not be worried about it. Mr. Maass answered that the specifics he mentioned came with the site plan process. He commented that the city would follow the required processes, but that the city had reviewed the site to ensure the development potential for the Chanhassen Bluffs facility. Commissioner Jobe asked about the 1.8 acres and if the pond was accurately sized. He asked if they would have the capacity for the run-off as things change. Mr. Maass responded that they had the ultimate condition for the sizing of the stormwater pond and that the 2.0 acres was adequate. Commissioner Soller asked about the requirements for the subdivision and made sure it was not premature. He asked what premature would look like and how the site does not lack the four items under Item G. Mr. Maass answered that there was a sanitary sewer and water main directly adjacent to the site, with the capacity to serve the site with the development. He said if there were no sanitary sewer, the subdivision would be considered premature. He said that all the conditions were met. Chairman Noyes opened the public hearing. John Gilbert, 1641 Jeurissen Lane, said he attended the hearing last night, and water was a hot topic for Pioneer Ridge. He commented that 1.8 acres seemed sufficient. He said he was glad to see that the community center had proper funding in place. He asked about the purchase agreement and the gift for the 13-acre property and whether the city was the applicant, rather than Level 7 Development. He thought the 8.2 Development Plan was in place and had not been updated. He said he understood that as they moved forward, things would crisscross. He said when the plan was first proposed to the city, there was talk about fast food restaurants and car 55 Planning Commission Minutes – May 6, 2025 8 washes, which was initially a concern. He stated that the hotel would do well to serve people who wanted to use the hockey rink. He discussed changes with the planned unit development regarding hydrodynamics as there may be changes when it comes to the final plan, and if the 2.0 acres would be sufficient. He commented that it was sad to see the 2.2 acres included changes to the senior housing. He said that the changes to the plan were unsettling, such as the walkability for residents. He lives nearby, and it is not the center of attraction as it was proposed to be. He said he did not recognize it as it was initially pitched. He discussed a personal desire to see a platform tennis court at the community center. Chairman Noyes closed the public hearing. Mr. Maass said that the city was the applicant but did not own the property. He said that there was a land-use application with the property owner. He said that it was common for someone with a purchase agreement to apply with the approval of the current property owner. Chairman Noyes said this seemed to be a formality portion of the process, as they were not discussing what would be in the subdivisions. He thought there would be future opportunities to provide feedback. Commissioner Soller moved, Chairman Rosengren seconded that the Chanhassen Planning Commission recommends approval of the requested preliminary plat and adopts the attached Findings of Fact and Decision. All voted in favor and the motion carried unanimously with a vote of 7 to 0. GENERAL BUSINESS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED APRIL 8, 2025 Commissioner Grover moved, Commissioner Trevena seconded to approve the Chanhassen Planning Commission summary minutes dated April 8, 2025, as presented. All voted in favor, and the motion carried unanimously with a vote of 7-0. 2. APPROVAL OF PLANNING COMMISSION MINUTES DATED APRIL 15, 2025 Commissioner Trevena moved, Commissioner Jobe seconded to approve the Chanhassen Planning Commission summary minutes dated April 15, 2025, as presented. All voted in favor, and the motion carried unanimously with a vote of 7-0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: None. CORRESPONDENCE DISCUSSION: None. 56 Planning Commission Minutes – May 6, 2025 9 OPEN DISCUSSION: None. ADJOURNMENT: Commissioner Jobe moved, Commissioner Olmstead seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 6:58 p.m. Submitted by Eric Maass Community Development Director 57 City Council Item June 9, 2025 Item Receive Planning Commission Minutes dated May 20, 2025 File No.Item No: D.6 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Senior Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Planning Commission minutes dated May 20, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Planning Commission minutes dated May 20, 2025 58 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES MAY 20, 2025 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chairman Eric Noyes, Steve Jobe, Jeremy Rosengren, Mike Olmstead, Dave Grover, and Katie Trevena. MEMBERS ABSENT: Ryan Soller. STAFF PRESENT: Rachel Arsenault, Associate Planner; and Rachel Jeske, Planner. PUBLIC PRESENT: Linda Paulsen PUBLIC HEARINGS: 1. ORDINANCE XXX: AMENDING CHAPTER 1 AND CHAPTER 20 DEFINING REGULATING DETACHED ACCESSORY DWELLING UNITS Rachel Jeske, Planner, explained that the City Council created a Planning Commission Community Development Work Plan for 2024. She summarized the list of topics to review and noted that they still needed to review the sign code and the accessory dwelling unit ordinance. She summarized the meetings in which they had talked about accessory dwelling units and noted that they provided a recommendation to the City Council on May 6, 2025. She stated that the City Council had a work session on detached auxiliary dwelling units on May 12, which the Planning Commission would review tonight. Ms. Jeske described the proposed zoning process and noted that they would be permitted in the Agricultural Estate (A-2), Rural Residential (RR), and Residential Single Family (RSF – 1 acre minimum). She said that the conditional use permit would be reviewed by the Planning Commission with a public hearing and that the final decision would be made by the City Council. She said that Conditional Use Permits are generally approved if they can meet City standards outlined in the code, with reasonable conditions added as determined by the City Council. Ms. Jeske said the height of the structure would not be able to be bigger than the principal structure unless they were located above a garage in the A-2 and RR districts. The detached ADUs have to meet the principal structure setbacks required by the underlying zoning district, and they had to be between 200 square feet and 960 square feet. She stated that there could not be more than one bedroom. She stated that there could be no more than one auxiliary dwelling unit allowed, both inclusive of attached and detached auxiliary units. She stated that the structure 59 Planning Commission Minutes – May 20, 2025 2 must have a permanent foundation with no wheels, must maintain compliance with the underlying zoning district regulation for impervious lot coverage, and the owner must occupy one of either the principal structure or detached auxiliary dwelling units as their primary place of residence. She commented that the detached auxiliary dwelling units could not be used as rental properties, as defined by the City Code. She said that they could be generally consistent with the architectural design of the principal structure, and they could not have additional driveway access. She stated that they should not have separate utility connections unless approved by the City Engineer/Public Works Director. She said that an auxiliary dwelling unit must meet all building, fire, property, and maintenance codes. She said that they may require year-round vegetative screening based on review by the city. She stated that a property zoned RSF must be at least 1.0 acres, but if the property does not meet that requirement, they could request a variance. She reviewed a map showing property sizes across Chanhassen, and she said that only the purple and two blue shades could have a detached auxiliary dwelling unit. Chairman Noyes asked if there was a percentage of the lots in Chanhassen that were zoned RSF and greater than 1.0 acre. Ms. Jeske responded that she did not, but she could look it up. Chairman Noyes asked for the primary reason for reviewing this. He said that there have been ten previous requests that went through a variance process and were approved, so there was not a high historical number of requests. Ms. Jeske answered that the staff receives a lot of inquiries on the topic and stated that in 2024, they received ten inquiries and no applications from interested people. Commissioner Olmstead asked if they could have a separate line for private utilities or if they had to go through the primary residence. Ms. Jeske answered that the assumption was for all utilities to go through the primary residence, but since electricity was not through the city, it would have to be approved by the primary utility company. Commissioner Rosengren asked about the height in section A and the allowance to exceed the height of the principal structure if it was a garage. Ms. Jeske responded that it referred to detached garages, which may be taller than the principal home. Commissioner Rosengren asked if a detached garage with an auxiliary dwelling unit made it a detached auxiliary dwelling unit. Ms. Jeske confirmed this information. Commissioner Jobe asked if the zoning of the height of the garage was set by the RR district. Ms. Jeske answered that in all three of the zoning districts, they all have a maximum structure height of 35 feet. Commissioner Grover asked if a property was sold, and how a buyer would know that they have to live in one of the units. Ms. Jeske responded that the conditional use permit would be recorded with the property, so it would be given to the property owner when they buy the property. Commissioner Rosengren stated that he was confused because, in the last meeting, they were discussing attached auxiliary dwelling units. He said that the language did not allow short-term rentals, but they asked if they could include language about all rentals. He stated that they 60 Planning Commission Minutes – May 20, 2025 3 discussed that the city does not regulate long-term rentals, so he asked how the city would monitor this information. Ms. Jeske answered that if a neighbor complained, they would enforce the code, and the city would follow through with the typical code enforcement process. Commissioner Rosengren clarified that it would be communicated when they got the approval for the auxiliary dwelling unit, and they would enforce it when they found out the information. Commissioner Grover asked if they should have the same language for the attached auxiliary dwelling units. Ms. Jeske answered that the attached auxiliary dwelling unit ordinance had already been approved. She said that the goal was that the conditional use process would be laid out more clearly. Chairman Noyes opened the public hearing. Linda Paulson said that the Planning Commission asked good questions. She asked about the frequency of monitoring of those who live in the unit. She asked what the penalty for abuse of an auxiliary dwelling unit would be for an owner to protect Chanhassen as a whole. She asked if conversion into a man cave would be permitted. She stated that the conditional use permit goes to one acre. She asked what would happen if someone had 0.73 acres and if they would lower that number to less and increase the density. She asked if neighbors within 500 feet would be notified when an auxiliary dwelling unit application was received. She asked how many structures were allowed on one lot, and about the impact of the pervious land percentage. She stated that Chanhassen was all built up, so she expressed concerns about the impact on pervious land and the impact on pollinator decline. She stated that her yard had a lot of milkweed, but if everyone built more buildings, then Chanhassen would be like Minneapolis. She expressed that it would be important to protect land for pollinators. She said that a comment on social media stated that the property taxes should increase on the property since there would be an increase in demand for public services. Chairman Noyes closed the public hearing. Commissioner Noyes asked if there was any process to notify the neighbors about an auxiliary dwelling request. Ms. Jeske answered that there would be a notification for the conditional use permit within either 500 feet or a quarter of a mile. Commissioner Noyes said that there was a defined definition of one bedroom and one bathroom. He asked if someone made a structure into a man cave, it would not necessarily make it an auxiliary dwelling unit. Ms. Jeske responded that the City Council discussed this at length. An auxiliary dwelling unit had to have a full kitchen, bathroom, bedroom, and living space. A full kitchen would have a refrigerator and a stove. Commissioner Trevena asked if there was a complaint and what process the city would take to respond. Ms. Jeske answered that the city did not have a specific process, but they would send a letter and request compliance within a set time. The owner would get three notices, and then it would be settled in court. 61 Planning Commission Minutes – May 20, 2025 4 Commissioner Rosengren voiced concern about the language of prohibiting rentals. He said that a detached auxiliary unit would be more desirable to rent. He asked if the City Council was trying to limit how people used a detached auxiliary dwelling unit, so that would be why they created the language in the ordinance. Ms. Jeske answered that the City Council had a goal that the auxiliary dwelling unit is not rented, but it did not make sense to call out rentals since it would be difficult to enforce the process. She said that the auxiliary dwelling unit ordinance line about rentals was changed to match this ordinance. Chairman Noyes said that as proposed the city would take the same stance on rental on any kind of ADU. He said it clearly states that rentals are prohibited. He said that the question was if they wanted to be more strict with this, and if so how they would do it. Commissioner Rosengren said that there was no language in the City Code that did not allow residents to rent the house. Ms. Jeske answered that long-term rentals are allowed, but there was no permitting process with the city. Commissioner Rosengren said that the city was weeding out people who would not break the law. He said that the attached dwelling unit code was modified to match, so they were not differentiating the code. He stated that there was a fear-based approach. He asked what they were trying to prevent. He said he could see the city asking for a careful approach, and if it came up for review later based on interest and community applications, they could do it that way. Chairman Noyes said that there had not been much interest. He said that there were more inquiries, but there was a previous cost associated with the process. He said that the inquiry number and the number of auxiliary dwelling units might go up by a small amount since the process was more clearly defined. Ms. Jeske said that a conditional use permit was more expensive than applying for a variance. Commissioner Jobe asked about the lot size. Ms. Jeske responded that the auxiliary dwelling unit was limited to 960 square feet. Commissioner Omstead asked about the motivation of those who inquired. Ms. Jeske answered that most of it was people looking for parents or a caretaker to stay. Commissioner Jobe moved, Commissioner Olmstead seconded that the Chanhassen Planning Commission motions to recommend the City Council adopt the ordinance amending Chapter 1 and Chapter 20 regulating Detached Accessory Dwelling Units as presented. All voted in favor and the motion carried unanimously with a vote of 6 to 0. GENERAL BUSINESS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED MAY 6, 2025 62 Planning Commission Minutes – May 20, 2025 5 Commissioner Trevena moved, Commissioner Rosengren seconded to approve the Chanhassen Planning Commission summary minutes dated May 6, 2025, as presented. All voted in favor, and the motion carried unanimously with a vote of 6 to 0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: Rachel Jeske, Planner, stated that they received two applications last Friday. One application was for the final plat for Pioneer Ridge which will go directly to the City Council. Additionally, the city received an application for site plan with variances for a project called Eden Springs, which would be a memory care residential development. CORRESPONDENCE DISCUSSION: OPEN DISCUSSION: None. ADJOURNMENT: Commissioner Olmstead moved, Commissioner Trevena seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 6:29 p.m. Submitted by Eric Maass Community Development Director 63 City Council Item June 9, 2025 Item Receive Commission on Aging Minutes dated March 21, 2025 File No.Item No: D.7 Agenda Section CONSENT AGENDA Prepared By Kate Vogt, Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Commission on Aging Minutes dated March 21, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Commission on Aging March 21, 2025 64 Chanhassen Commission on Aging, March 21, 2025 The meeting was called to order at 10:02 a.m. by Commissioner Cassidy. MEMBERS PRESENT: Gwen Block, Jim Camarata, Kara Cassidy, Ruth Lunde, Beth Mason, Bhakti Modi, Phyllis Mobley MEMBERS ABSENT: GUESTS PRESENT: Linnea Fonnest, Chanhassen Library; LeeAnn Eiden, Senior Community Services; Incoming Commissioners on Aging Jane Bender, Janet Dean, and Barbara Solum. APPROVAL OF AGENDA: The agenda was reviewed as submitted. Commissioner Mobley made a motion to approve the agenda. Commissioner Camarata seconded. All members voted in favor; the motion was carried. APPROVAL OF MINUTES: February 21, 2025, minutes were reviewed. Commissioner Block made a motion to approve the minutes. Commissioner Mason seconded. All members voted in favor; the motion was carried. GENERAL BUSINESS: Three newly appointed commissioners, Jane Bender, Janet Dean, and Barbara Solum introduced themselves and expressed excitement for their new roles on the commission. SENIOR CENTER NAME CHANGE. Mary presented the slideshow that was shown to the City Council along with data collected via the community survey. City Council recommending keeping the Senior Center name as is, as it is respectful and identifies the space. There may be future opportunities to revisit this, or to create room names in the new space to reflect the Center’s personality and structure, including a space in memory of long time Dementia Friends advocate and former Commissioner, Dorina Tipton. CITY COUNCIL INTERVIEWS: NEW COMMISSIONERS UPDATE. Commissioner Cassidy, current chair, shared some final words of farewell with the commission. Mary said that there were many new, highly qualified applicants this year. Commissioners Cassidy, Modi, and Lunde will be leaving the commission. The commission will be welcoming new commissioners Jane Bender, Janet Dean, and Barbara Solum. There is one more position that has yet to be appointed, but the decision will be made by Monday, February 24, 2025 JULY 4TH BINGO PLANNING: DONATIONS, LETTERS, SPONSORS. Priya Wall, Recreation Manager, is compiling a list of local businesses that the commission can can also use. The commission selected Senior Community Services – Technology Assistance Program as the charity they will donate to for 2025. Commissioner Camarata motioned; Commissioner Lunde seconded. All members voted in favor, and the motion carried. 65 MEMORIAL DAY EVENT: DONATIONS, VOLUNTEERS. After considering many options, the commission selected Revitalizing Veterans’ Dreams as the local charity they will collect donations for in 2025. Commissioner Camarata made a motion; Commissioner Block seconded the motion. Commissioner Mobely opposed. COMMITTEE UPDATES: COMMUNICATIONS. Commissioner Camarata shared that the Carver County Online Local News has published three articles that he has submitted, and he is working on more to submit. Commissioner Mason shared the progress on the Chanhassen Senior Guide, modeled after a booklet Victoria has shared. Commissioner Modi answered several questions related to the Carver County Online Local News group, and explained how to subscribe and how to submit events and articles. VISITOR PRESENTATIONS: CARVER COUNTY HEALTH & HUMAN SERVICES. Kara Cassidy reported that winter illnesses were decreasing. She announced there will be a County wide Commissioners on Aging Meeting on September 5 at the Arboretum. More information will be forthcoming. CHANHASSEN LIBRARY. Linnea Fonnest provided an update on many programs they are running this spring and into the summer, as well as information related to programs with Communities of Belonging in Chanhassen. SENIOR COMMUNITY SERVICES. LeeAnn Eiden provided an update on the regular caregiver support groups that are going on within the community and her upcoming Dementia Friends workshops. DISCUSSION HONORING CHOICES ADVANCE CARE PLANNING NAVIGATOR TRAINING. Honoring Choices reached out to Mary, looking to create a partnership with the Commission on Aging and Chanhassen Senior Center. They provided many options for what this partnership could look like, the commissioners expressed excitement over this opportunity. This partnership would begin once the Senior Center has moved to its new home in the new Civic Campus. SENIOR CENTER PROGRAMS AND NEW FACILITY UPDATES. Mary shared the Center’s Quarterly Report that she will be presenting to the Park and Recreation Commission next month. There was a brief overview of events and what to expect this summer. ADJOURNMENT Commissioner Mason made a motion to approve adjournment. Commissioner Camarata seconded. All members voted in favor; the motion was carried. Meeting adjourned at 10:57 a.m. Submitted by Mary Blazanin Senior Center Coordinator 66 City Council Item June 9, 2025 Item Receive Commission on Aging Minutes dated April 18, 2025 File No.Item No: D.8 Agenda Section CONSENT AGENDA Prepared By Kate Vogt, Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Commission on Aging Minutes dated April 18, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Commission on Aging April 18, 2025 67 Chanhassen Commission on Aging, April 18, 2025 The meeting was called to order at 10:07 a.m. by Commissioner Camarata. MEMBERS PRESENT: Gwen Block, Jane Bender, Jim Camarata, Janet Dean, Beth Mason, Phyllis Mobley, Barbara Solum MEMBERS ABSENT: Becky Lundgren GUESTS PRESENT: Linnea Fonnest, Chanhassen Library; Danielle Schmit, Senior Community Services; Kara Cassidy, Carver County Health and Human Services – Office of Aging CALL TO ORDER COMMISSION ON AGING APPOINTMENTS & OATH OF OFFICE Jenny Potter, City Clerk, performed the oath of office on Commissioner Solum, Commissioner Dean, and Commissioner Bender. APPROVAL OF AGENDA: The agenda was reviewed as submitted. Commissioner Camarata made a motion to approve the agenda. Commissioner Mobley seconded. All members voted in favor; the motion was carried. APPROVAL OF MINUTES: March 21, 2025, minutes were reviewed. Commissioner Mobley made a motion to approve the minutes. Commissioner Mason seconded. All members voted in favor; the motion was carried. GENERAL BUSINESS: The Commission on Aging took a moment to introduce themselves to one another with the addition of the new commissioners. ELECTION OF CHAIR AND VICE CHAIR Commissioner Camarata expressed interest in taking on the role of Chair. A motion was made by Commissioner Mason, Commissioner Mobley seconded this motion. All members voted in favor. Commissioner Mobley expressed interest in taking on the role of Vice Chair. A motion was made by Commissioner Dean, Commissioner Mason seconded this motion. All members voted in favor. REVIEW COMMISSION ON AGING BYLAWS Mary explained a few small changes she had made to the bylaws. Commissioner Bender made a motion to approve the bylaws. Commissioner Mobley seconded. All members voted in favor; the motion carried. APPROVAL OF 2025-2026 GOALS AND OBJECTIVES 68 Mary reviewed the goals and objectives for the 2025-2026 planning year and answered any questions brought up by the commissioners. A motion was made by Commissioner Dean to approve the 2025-2026 Goals and Objectives. Commissioner Mason seconded. All members voted in favor; the motion carried. 4TH OF JULY BINGO AND MEMORIAL DAY Mary gave a brief overview of the July 4th and Memorial Day expectations and what is needed from the commissioners. She confirmed that WDGY Radio Host, Dave Ryan will MC the Bingo games. She has also communicated with the chosen charities for each event and they will provide a volunteer as well. Commissioners were invited to help with both events. Commissioners Mason, Mobley and Solum volunteered to assist for Memorial Day event. Commissioners were asked to let Mary know soon if they were available to help during the 4th of July Bingo event. HONORING CHOICES Honoring Choices is a nonprofit organization that helps seniors prepare essential paperwork such as health directives and wills, they help make this paperwork accessible for individuals as well. Kara Cassidy is working with Honoring Choices to have them attend the annual Commission on Aging meeting next fall and spoke a little of the trainings they offer. Mary is hoping to partner with them as well at the Senior Center FALL SENIOR HEALTH AND WELLNESS EXPO Mary has partnered with Jodi Sarles, Recreation Center Manager, to host a Health and Wellness Expo in the fall. It will be a free event with plenty to do for all. This expo will be held on October 8, 2025, at the Chanhassen Recreation Center in the morning. LIONS CLUB ANNUAL SENIOR PICNIC AT LAKE ANN This year's Annual Senior Picnic will be held on June 24, 2025, at 11:30 am. Every year Chanhassen Lions Club sponsors and hosts this great, free event at Lake Ann. Mary encouraged commissioners to join in on the fun. VISITOR PRESENTATIONS: CARVER COUNTY HEALTH & HUMAN SERVICES. Kara Cassidy reported that the All- Senior Commissions Conference will be held on Friday, September 5, at the Arboretum from 10:00 am to 1:00 pm. This year's theme will be Emergency Preparedness, and they already have some great speakers lined up. SENIOR COMMUNITY SERVICES. Danielle Schmit quickly introduced herself to the group. She shared that there will be another caregiver support group starting May 7 from 1:00 pm to 2:30 pm, running on the first Wednesday of every month. Chanhassen Senior Center will also be hosting another Dementia Friends Education class on June 3. This is a free workshop sponsored by Riley Crossing Senior Living and taught by social workers from Senior Community Services. 69 CHANHASSEN LIBRARY. Linnea Fonnest provided commissioners with a Library program that details all the upcoming events happening at the Library this spring and summer. She noted that adult programing will be cut back as summer approaches and they start to focus more on the children out of school. She shared information about the ongoing success of Communities of Belonging gatherings, and mentioned the free Master Gardeners Help Desk will be open this spring and summer. CHANHASSEN SENIOR CENTER Mary shared the upcoming senior trips which the center has planned and programs to look forward to. She encouraged Commissioners to join in on some of these to build connections to the patrons she serves and listen to their input. ADJOURNMENT Commissioner Mobley made a motion to approve adjournment. Commissioner Block seconded. All members voted in favor; the motion was carried. Meeting adjourned at 11:54 am. Submitted by Mary Blazanin Senior Center Coordinator 70 City Council Item June 9, 2025 Item Receive Park and Recreation Commission Minutes dated March 25, 2025 File No.Item No: D.9 Agenda Section CONSENT AGENDA Prepared By Kate Vogt, Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Park and Recreation Commission minutes dated March 25, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 71 Park and Recreation March 25, 2025 72 CHANHASSEN PARK AND RECREATION COMMISSION REGULAR MEETING MINUTES MARCH 25, 2025 Commissioner Eidsmo called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Dan Eidsmo; Rob Swanson; Kristin Fulkerson; Michael Leisen; Sean Morgan; Clara Christenson, youth; Aayan Shrestha, youth. MEMBERS ABSENT: Jim Peck, Chair; Scott Pharis, Vice Chair. STAFF PRESENT: Jerry Ruegemer, Park and Recreation Director; Adam Beers, Park Superintendent; Priya Wall, Recreation Manager; Luke Kegley, Recreation Supervisor; Jodi Sarles, Rec Center Manager; and Mary Blazanin, Senior Center Coordinator. PUBLIC PRESENT: Gary Haberman Nora Nashawaty Emily Nagel APPROVAL OF AGENDA: Commissioner Fulkerson moved, Commissioner Leisen seconded to approve the agenda as presented. All voted in favor and the motion carried unanimously with a vote of 7 to 0. PUBLIC ANNOUNCEMENTS: Jerry Ruegemer, Park and Recreation Director, introduced Nora Nashawaty and Emily Nagel. They are two of the newly appointed Park and Recreation Commission members. He stated that they would recognize Commissioner Eidsmo on April 14 at the City Council meeting. VISITOR PRESENTATIONS: None. APPROVAL OF MINUTES: 1. Approve Park & Recreation Minutes dated February 25, 2025 Commissioner Swanson moved, Commissioner Fulkerson seconded to approve the minutes of the Park and Recreation Commission meeting dated February 25, 2025 as presented. All voted in favor and the motion carried unanimously with a vote of 7 to 0. GENERAL BUSINESS: 73 Park and Recreation Commission Minutes – March 25, 2025 2 1. Receive 2024 Park and Recreation Department Annual Report Jerry Ruegemer, Park and Recreation Director, noted that the 2024 Park and Recreation Department Annual Report was a great historical document. Priya Wall, Recreation Manager, reviewed the 2024 Park and Recreation Department Annual Report. She highlighted new programs from 2024, including the Halloween Costume Swap and the Puzzlepalooza. She reviewed changes in location for various locations due to the construction at the Civic Campus. She summarized different facility improvements and exercise equipment updates. She explained different ways to communicate recreational information. She summarized the attendance at community events and the number of volunteer hours. She provided an overview of business sponsorships for events. She reviewed statistics about the senior center programming for 2024. She summarized the different programs and events held at the Chanhassen Recreation Center, including special events, athletic games and practices, and recreation instruction. She highlighted different statistics for the youth programs and adult programs. She explained how Reach for Resources provided inclusion support for recreation activities. She reviewed how Park Maintenance provided support to maintain parks, trails, and fields. Commissioner Morgan thanked Ms. Wall for the in-depth report. He asked if any events felt they needed to do more of in 2025 or to scale back on. Ms. Wall explained that they try to evaluate if programs are successful every year. She commented that the large-scale community events that were free or inexpensive were successful. She said that the Summer Discovery Playground Program had lower registration, so they were trying to evaluate the program and make necessary changes. Mr. Ruegemer said that the Lake Ann Adventure Camp was incorporated for a third week to satisfy customers' needs. He said that the Family Fun Night was successful, and they can continue to add different options for families. He said that they moved the Summer Concert Series to Lake Ann Park because of the Civic Campus project. The city remains flexible and continues to look at new ways to deliver their programs and events. Commissioner Leisen suggested looking at communication with residents in future meetings. Commissioner Fulkerson moved, Commissioner Leisen seconded to approve the Park and Recreation Commission Staff’s recommendation to the City Council to receive and approve the 2024 Park & Recreation Annual Report. All voted in favor and the motion carried unanimously with a vote of 7 to 0. 2. 2024-2025 Ice Rink Season Evaluation 74 Park and Recreation Commission Minutes – March 25, 2025 3 Luke Kegley, Recreation Supervisor, provided a summary of the 2024-2025 ice skating rink season, which ran from December 20 to February 23. He provided an overview of the recorded participants at the monitored rinks, the costs for rink maintenance, and the total expenses. Commissioner Eidsmo asked if there were any serious injuries at the ice rinks. Mr. Kegley answered that there were accident report cards to fill out at the locations, but there were no reported injuries. He said that individual families had the option to use helmets. Commissioner Eidsmo said more people are using helmets. Commissioner Fulkerson said she saw a lot of people at Roundhouse Park. She asked about the attendance. Mr. Kegley said that 66 people self-reported at Roundhouse Park and Pioneer Pass. He explained that they could not guarantee the accuracy of the numbers since the park was not staffed. Commissioner Fulkerson said most people put their skates on by the basketball court at Roundhouse Park and suggested putting the QR code survey near the courts. REPORTS: 1. Recreation Center Quarterly Update Jodi Sarles, Rec Center Manager, reviewed the 269 paid rental events at the Chanhassen Recreation Center during the first quarter of 2025. She provided program updates on Dance for Fun, Rec Center Sports, Go Gymnastics, ACTA Tae Kwon Do, Fit for Life, and Pickleball Lessons. She reviewed different events they hosted, including the Royal Ball at Lions Park Pavilion and Puzzlepalooza 2. She explained different upcoming events, including the Fit for Life Free Trail Class, the Superhero Party, the Garden Tool Swap with Carver County, and the Dance for Fun Recital. Commissioner Leisen asked how often they would offer Puzzlepalooza. Ms. Sarles answered that they would put it on approximately three times a year. Commissioner Morgan asked about the new Recreation Center and trends for programming. He asked what community input opportunities there would be as they consider different space needs. Commissioner Sarles responded that they wanted to build the Recreation Center to be multi- functional and adaptable for different types of activities. She wanted to figure out different ways to get the community in the door and provide activities for all ages. Mr. Ruegemer said that the building was an opportunity to increase programming visibility and appeal with the new Community Center. They were considering all aspects of the facilities in the design. 75 Park and Recreation Commission Minutes – March 25, 2025 4 Commissioner Fulkerson asked about putting in a figure skating school. Mr. Ruegemer answered that it was something they could consider. 2. Easter Egg Candy Hunt Preview Ms. Wall summarized the plans for the 2025 Easter Egg Candy Hunt scheduled for April 19 at 9 a.m. and 10 a.m. She reviewed the volunteers scheduled to help with the event and noted that the event typically brings in 600 to 900 kids and families. She reviewed different volunteers for the event, including the Chanhassen Fire Department, the Chanhassen, Chaska, and Eden Prairie High School Key Club, Kiddywampus, Mathnasium of Chanhassen West, Kiddie Academy, 02B Kids, and SunnyDays therapy. 3. Park Maintenance Quarterly Report Adam Beers, Park Superintendent, provided a summary of the work completed by the park maintenance crew. He noted that they completed all routine maintenance on the small equipment fleet, started facility start-ups, pruned and cleared trees in the park system, and removed the existing hockey rink at City Center Park. He reviewed how the robotic lawn mower and robotic field striping equipment would be utilized. Commissioner Leisen asked if there were parks that fell behind on maintenance. Mr. Beers answered that all parks had some maintenance needs, but there were no safety concerns. Mr. Ruegemer said that there would be a playground replacement in the fall. Commissioner Eidsmo asked if they ever did anything with the scoreboards so the teams could operate them. Mr. Beers answered that they met with the association yesterday. He said that it would be a goal eventually. He stated that the meeting was positive, and the association was looking for ways to partner. Commissioner Eidsmo mentioned the association mentioned willingness to pay for the equipment if Parks Maintenance would hook it up. Mr. Beers answered that there was an app to utilize a scoreboard. 4. Senior Center Quarterly Update Mary Blazanin, Senior Center Coordinator, reviewed the programming and activities for the quarter. She said they serve ages 55 to 100. She explained how different activities appealed to different age ranges. She reviewed the series she started with the Chanhassen Historical Society and explained that she was working on developing more activities for men. She explained that they sent out a survey to see if they should change the name of the senior center. The City Council encouraged a fresh marketing campaign for the space. She reviewed the different 76 Park and Recreation Commission Minutes – March 25, 2025 5 organizations they partner with and the services they provide, such as tax help. She said that they partner with the Lion’s Club on various activities. She reviewed the conversation she had with Gary Haberman to identify two older adults facing medical or financial difficulties. The Lion’s Club gifted the two individuals a $500 gift. Ms. Blazanin thanked Mr. Haberman for the gift. Youth Commissioner Christenson asked if they would move all the programs to the new Senior Center or if they would keep some at the Recreation Center. Ms. Blazanin answered that they considered keeping the space since it works better for certain classes. They were having conversations to think about what programs to keep at the Recreation Center. Commissioner Eidsmo asked if she was going to maintain a shared office with Ms. Sarles. Ms. Blazanin said that they have been able to solve many problems while sharing an office. Gary Haberman explained that the Lions Club Foundation was relatively new. He said that the individuals were happy to receive the extra funds to help them through difficult times. COMMISSION MEMBER COMMITTEE REPORTS: None. COMMISSION MEMBER PRESENTATIONS: Commissioner Eidsmo said it was a pleasure to work with Mr. Ruegemer and his talented staff. He thanked his past and present Commission Members for their work. Mr. Ruegemer thanked Commissioner Eidsmo for the ways he devoted time to the community. ADMINISTRATIVE PRESENTATIONS: None. ADJOURNMENT: Commissioner Swanson moved, Commissioner Fulkerson seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Park and Recreation Commission meeting was adjourned at 7:25 p.m. Submitted by Jerry Ruegemer Park and Recreation Director 77 City Council Item June 9, 2025 Item Receive Park and Recreation Commission Minutes dated April 22, 2025 File No.Item No: D.10 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Senior Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Park and Recreation Commission minutes dated April 22, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 78 Park and Recreation Commission minutes dated April 22, 2025 79 CHANHASSEN PARK AND RECREATION COMMISSION REGULAR MEETING MINUTES APRIL 22, 2025 Jerry Ruegemer, Park and Recreation Director, called the meeting to order at 6:00 p.m. OATHS OF OFFICE: Jenny Potter, City Clerk, administered the oath of office to Commissioner Nashawaty. Ms. Potter administered the oath of office to Commissioner Nagel. Ms. Potter administered the oath of office to Commissioner Scheppmann. NOMINATION AND APPOINTMENT OF 2025-2026 CHAIR AND VICE CHAIR: Jerry Ruegemer, Park and Recreation Director, explained the process for the nomination and appointment of the 2025-2026 Chair and Vice Chair. Commissioner Leisen provided a summary of his involvement with the Park and Recreation Commission, focusing on volunteer experience for events. He summarized the goals for his service on the Park and Recreation Commission. Commissioner Morgan moved, Commissioner Swanson seconded to nominate Michael Leisen for Chair of the Park and Recreation Commission. All voted in favor and the motion carried unanimously with a vote of 8 to 0. Commissioner Morgan described his involvement with the Park and Recreation Commission. He discussed his priorities as the Vice Chair to move beyond validating good work to add value for the City staff. Chair Leisen moved, Commissioner Swanson seconded to nominate Sean Morgan for Vice Chair of the Park and Recreation Commission. All voted in favor and the motion carried unanimously with a vote of 8 to 0. MEMBERS PRESENT: Rob Swanson; Kristin Fulkerson; Michael Leisen; Sean Morgan; Emily Nagel; Kurt Scheppmann; Nora Nashawaty; Clara Christenson, youth. MEMBERS ABSENT: Aayan Shrestha, youth. 80 Park and Recreation Commission Minutes – April 22, 2025 2 STAFF PRESENT: Jerry Ruegemer, Park and Recreation Director; Priya Wall, Recreation Manager; and Jenny Potter, City Clerk. PUBLIC PRESENT: None. APPROVAL OF AGENDA: Commissioner Fulkerson moved, Commissioner Morgan seconded to approve the agenda as presented. All voted in favor and the motion carried unanimously with a vote of 8 to 0. PUBLIC ANNOUNCEMENTS: None. VISITOR PRESENTATIONS: None. APPROVAL OF MINUTES: 1. Approve Park & Recreation Minutes dated March 25, 2025 Commissioner Swanson moved, Commissioner Fulkerson seconded to approve the minutes of the Park and Recreation Commission meeting dated March 25, 2025, as presented. All voted in favor and the motion carried unanimously with a vote of 8 to 0. GENERAL BUSINESS: 1. Review Park and Recreation Commission Bylaws Jerry Ruegemer, Park and Recreation Director, stated that they review the Park and Recreation Commission Bylaws. He opened for discussions or questions. Commission Morgan asked about the hearing procedure process. He asked if there were types of hearings that would be at the Commission. Mr. Ruegemer answered that there would not be a lot of public hearings, but there may be topics that were controversial. He said that there would be a motion on the table that would be elevated to the City Council. He said that the Park and Recreation Commission would help work through that decision-making process. Commissioner Nashawaty asked how often subcommittees come about and the process for creating them. Mr. Ruegemer responded that the process would be if there was a topic of consideration, they would put it on a future agenda, and the Chair would form a subcommittee to gather information and report back. Commissioner Nashawaty asked if there were some examples. Mr. Ruegemer responded that a previous 5K race, the park referendum task force, or the centennial celebration. 81 Park and Recreation Commission Minutes – April 22, 2025 3 Commissioner Morgan moved, Commissioner Fulkerson seconded to approve the Park and Recreation Commission Bylaws. All voted in favor and the motion carried unanimously with a vote of 8 to 0. 2. Recognize City Council Appointments to the Park and Recreation Commission Chair Leisen welcomed the new commission members. Commissioner Scheppmann stated his family enjoyed utilizing the outdoor spaces in Chanhassen, and he wanted to give back to the community. Commissioner Nagel said that they were fortunate to take advantage of community events, and she had a vested interest in continuing to help make the community better to benefit her family. Commissioner Nashawaty said there were opportunities to get residents involved with regular programming. She said her goal was to engage parts of the community that had been left out. REPORTS: 1. Easter Egg Candy Hunt Evaluation Priya Wall, Recreation Manager, reviewed the Easter Egg Candy Hunt. She stated that over 1000 people attended the event, including children, parents, and guardians. She thanked the businesses that helped sponsor the event. She voiced appreciation for the Fire Department and High School Volunteers for their assistance with the event. She summarized the feedback from the event, including the hope to recruit additional businesses to add to the event, and a zone for children two to three. Chair Theisen asked about any feedback from the businesses and if she thought they would be back. Ms. Wall responded that she thought they would be back. They voiced appreciation for a chance to connect with residents at the event. She mentioned many of the businesses were local. They looked forward to the chance to have smaller financial contributions. Youth Commissioner Christenson voiced a need to separate the Easter egg hunt for children under four, since there was a lot of congestion. Commissioner Scheppmann said that the timing of Easter, the proximity of spring break, and the weather might impact the participation. He said the event was well done. Commissioner Morgan asked about the structure reviews of corporate sponsorship and admissions. Ms. Wall responded that the two large youth events were $6 to help cover the costs of the net fees for the online pre-registration. She said they try to keep the event as low-cost as possible. She said that Feb Fest has free admission, but you pay for the ice fishing contest. 82 Park and Recreation Commission Minutes – April 22, 2025 4 Jerry Ruegemer, Park and Recreation Director, said that the fishing contest used to be broken down by kids and adults, but now the cost is $10 a ticket. He said that they were trying to do a combination of the revenue collected. He said they give a lot of prizes away at Feb Fest. Ms. Wall said that they were trying to figure out the sponsorship program for other events. They started a title sponsor option for larger events. She said that they do not want to price the sponsors out of events. She stated that the Easter Egg Hunt had tiers to the sponsorships. Mr. Ruegemer said that they were looking for sponsorship and naming rights for Chanhassen Bluffs Community Center. Commissioner Morgan asked if the sponsorships are renewed. Ms. Wall responded that they do an annual sponsorship campaign in the fall. She said that half of the sponsors follow the timeline, but the other half like to be reached out to a few months in advance. COMMISSION MEMBER COMMITTEE REPORTS: None. COMMISSION MEMBER PRESENTATIONS: Commissioner Swanson discussed the Gnomadic Gnome Hunt. ADMINISTRATIVE PRESENTATIONS: None. ADJOURNMENT: Commissioner Fulkerson moved, Commissioner Swanson seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 8 to 0. The Park and Recreation Commission meeting was adjourned at 6:41 p.m. Submitted by Jerry Ruegemer Park and Recreation Director 83 City Council Item June 9, 2025 Item Approve Claims Paid dated June 9, 2025 File No.Item No: D.11 Agenda Section CONSENT AGENDA Prepared By Danielle Washburn, Assistant Finance Director Reviewed By Kelly Grinnell SUGGESTED ACTION "The Chanhassen City Council Approves Claims Paid dated June 9, 2025." Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY BACKGROUND DISCUSSION The following claims are submitted for review and approval on June 9, 2025: Total Claims $2,268,372.93 BUDGET RECOMMENDATION 84 ATTACHMENTS Payment Summary Payment Detail 85 Accounts Payable Checks by Date - Summary Vendor Name Check Date Void Checks Check Amount 3CMA 03/18/2025 0.00 1,160.00 Amazon 03/18/2025 0.00 3,717.82 American Planning Association 03/18/2025 0.00 785.00 Arrowwood Resort 03/18/2025 0.00 376.68 Astleford International 03/18/2025 0.00 69.48 B&H Photo 03/18/2025 0.00 765.10 Best Buy 03/18/2025 0.00 458.97 Bitly, Inc 03/18/2025 0.00 35.00 BuyRailings 03/18/2025 0.00 109.86 Caribou Coffee 03/18/2025 0.00 111.03 Champps 03/18/2025 0.00 68.11 Chanhassen Dinner Theatre 03/18/2025 0.00 4,199.24 Chick-Fil-A 03/18/2025 0.00 271.37 Chipotle Mexican Grill 03/18/2025 0.00 191.63 Crooked Pint 03/18/2025 0.00 20.30 Cub Foods 03/18/2025 0.00 358.89 Davanni's 03/18/2025 0.00 569.44 Dell 03/18/2025 0.00 8,477.65 DPS Firefighter Licensing 03/18/2025 0.00 50.00 Economic Development Assn of MN 03/18/2025 0.00 790.00 Edgetek Hockey 03/18/2025 0.00 53.61 Ehlers 03/18/2025 0.00 250.00 Facebook 03/18/2025 0.00 64.86 Fleet Farm 03/18/2025 0.00 596.11 Foster Bros Marine 03/18/2025 0.00 661.96 FotoGenic 03/18/2025 0.00 589.00 FTD 03/18/2025 0.00 125.10 Full Source 03/18/2025 0.00 693.37 Fusion Learning Partners 03/18/2025 0.00 1,650.00 Global Industrial Solutions 03/18/2025 0.00 218.51 Go To Joinme 03/18/2025 0.00 9,833.88 Government Finance Officers Association 03/18/2025 0.00 300.00 Government Social Media, LLC 03/18/2025 0.00 1,527.00 Grainger 03/18/2025 0.00 167.55 Grammarly 03/18/2025 0.00 900.00 Hach Company 03/18/2025 0.00 498.80 Holiday Stationstore 03/18/2025 0.00 67.71 Home Depot 03/18/2025 0.00 301.17 Homeland Security and Emergency Management 03/18/2025 0.00 204.30 Hughes Construction 03/18/2025 0.00 427.90 Hy-Vee 03/18/2025 0.00 58.97 International Institute Municipal Clerks 03/18/2025 0.00 235.00 Kwik Trip 03/18/2025 0.00 87.07 Lasercrafting 03/18/2025 0.00 13.00 Page 1 of 7 86 Vendor Name Check Date Void Checks Check Amount Lucid Software Inc 03/18/2025 0.00 108.00 Lunds & Byerly's 03/18/2025 0.00 17.32 Menards 03/18/2025 0.00 990.01 Metropolitan Council Enviromental Services 03/18/2025 0.00 20,000.00 Michaels 03/18/2025 0.00 44.51 Microsoft 03/18/2025 0.00 192.00 Minnesota Nursery and Landscape 03/18/2025 0.00 705.00 Minnesota Rural Water Association 03/18/2025 0.00 350.00 Minnesota State Colleges and Universities 03/18/2025 0.00 790.00 Minnetonka Glass 03/18/2025 0.00 506.59 MN Department of Transportation 03/18/2025 0.00 -40.00 MN Dept of Labor and Industry 03/18/2025 0.00 19.00 MN Government Finance Officers Association 03/18/2025 0.00 350.00 MN Pollution Control Agency 03/18/2025 0.00 23.49 MN Recreation and Park Association 03/18/2025 0.00 3,025.00 MN Utility Contractors Association 03/18/2025 0.00 2,100.00 Municipal Clerk and Finance Officers 03/18/2025 0.00 50.00 Munivate LLC 03/18/2025 0.00 508.75 National Fire Sprinkler Association 03/18/2025 0.00 50.00 National Registry Of EMT 03/18/2025 0.00 25.00 NORTH COOP 03/18/2025 0.00 28.00 Northern Tool+Equipment 03/18/2025 0.00 75.96 Office Max/Office Depot 03/18/2025 0.00 54.22 Panera Bread 03/18/2025 0.00 271.79 Party City 03/18/2025 0.00 345.72 Pearson Florist 03/18/2025 0.00 80.78 Postmaster 03/18/2025 0.00 50.69 Princess Party Pals 03/18/2025 0.00 100.00 Quality Inn & Suites 03/18/2025 0.00 270.79 RocketLaw 03/18/2025 0.00 59.97 Safeguard by Solv 03/18/2025 0.00 206.66 Sam's Club 03/18/2025 0.00 116.80 Sewing Tech Uniform Co 03/18/2025 0.00 397.74 Shoplet 03/18/2025 0.00 207.04 Sidekick Theatre 03/18/2025 0.00 2,295.00 Smartpress.com 03/18/2025 0.00 76.04 Stampli 03/18/2025 0.00 1,362.00 Star Tribune 03/18/2025 0.00 24.00 Stratoguard, LLC 03/18/2025 0.00 2,533.01 Target 03/18/2025 0.00 258.64 Taza Fresh Mediterranean 03/18/2025 0.00 263.64 TechSmith 03/18/2025 0.00 11.88 The Media Factory, Inc 03/18/2025 0.00 44.00 The O.G. Coffee & Wine Bar 03/18/2025 0.00 16.11 TJ Office Furniture 03/18/2025 0.00 8,500.00 Tonka TD Club 03/18/2025 0.00 210.00 U of M Contlearning 03/18/2025 0.00 320.00 Uber 03/18/2025 0.00 30.96 Wal-Mart 03/18/2025 0.00 14.97 Water Environment Federation 03/18/2025 0.00 189.00 When I work 03/18/2025 0.00 50.00 White House Custom Colour 03/18/2025 0.00 39.02 Winchester and Rye 03/18/2025 0.00 9.00 Page 2 of 7 87 Vendor Name Check Date Void Checks Check Amount Zoom 03/18/2025 0.00 104.04 Acme Tools 04/16/2025 0.00 363.56 Amazon 04/16/2025 0.00 3,532.78 American Carnival Mart 04/16/2025 0.00 406.80 American Public Works Association 04/16/2025 0.00 691.00 Astleford International 04/16/2025 0.00 522.03 Batteries Plus 04/16/2025 0.00 68.45 Bitly, Inc 04/16/2025 0.00 35.00 Carver County 04/16/2025 0.00 2.00 Carver County Environmental Center 04/16/2025 0.00 171.78 Carver County Historical Society 04/16/2025 0.00 25.00 CDW Government 04/16/2025 0.00 433.21 Core & Main LP 04/16/2025 0.00 224.82 Costco Wholesale 04/16/2025 0.00 641.28 Cru Dance 04/16/2025 0.00 4,778.00 Cub Foods 04/16/2025 0.00 8.34 Delta Airlines 04/16/2025 0.00 438.96 DX Events 04/16/2025 0.00 7,402.32 Facebook 04/16/2025 0.00 79.97 Fleet Farm 04/16/2025 0.00 25.99 FSMN/Menuetta 04/16/2025 0.00 33.50 FTD 04/16/2025 0.00 39.99 Government Finance Officers Association 04/16/2025 0.00 445.00 GP Filter 04/16/2025 0.00 170.98 Grainger 04/16/2025 0.00 119.37 Grand Hyatt Denver 04/16/2025 0.00 530.14 Grundens USA 04/16/2025 0.00 129.99 Hach Company 04/16/2025 0.00 872.59 Home Depot 04/16/2025 0.00 3,093.39 Hydraulic World 04/16/2025 0.00 310.83 IAM Trading Limited 04/16/2025 0.00 195.00 Inn on Lake Superior 04/16/2025 0.00 887.56 International Institute Municipal Clerks 04/16/2025 0.00 135.00 JSW Embroidery & Tackle Twill 04/16/2025 0.00 206.00 Kowalski's Market 04/16/2025 0.00 23.56 Kwik Trip 04/16/2025 0.00 117.52 Lemon Squeezy LLC 04/16/2025 0.00 82.01 Lightbulbs.com 04/16/2025 0.00 432.78 Lunds & Byerly's 04/16/2025 0.00 26.55 Menards 04/16/2025 0.00 209.60 Merlins Ace Hardware 04/16/2025 0.00 25.77 Metropolitan Council Enviromental Services 04/16/2025 0.00 20,000.00 Minnetonka Glass 04/16/2025 0.00 506.58 MN American Water Works Association 04/16/2025 0.00 320.00 MN Pollution Control Agency 04/16/2025 0.00 56.18 MN Recreation and Park Association 04/16/2025 0.00 344.00 Munivate LLC 04/16/2025 0.00 138.75 Na's Thai Cafe 04/16/2025 0.00 13.87 National Registry Of EMT 04/16/2025 0.00 125.00 Noodles & Company 04/16/2025 0.00 233.93 Northern Tool+Equipment 04/16/2025 0.00 97.66 Octane Conference 04/16/2025 0.00 160.00 O'Reilly Auto Parts 04/16/2025 0.00 79.98 Page 3 of 7 88 Vendor Name Check Date Void Checks Check Amount Postmaster 04/16/2025 0.00 11.00 Potbelly Sandwich Shop 04/16/2025 0.00 158.90 Quality Inn & Suites 04/16/2025 0.00 9.23 RocketLaw 04/16/2025 0.00 59.97 Sam's Club 04/16/2025 0.00 197.24 Smartpress.com 04/16/2025 0.00 294.56 Southwest Metro Chamber of Commerce 04/16/2025 0.00 520.00 St Cloud Parking 04/16/2025 0.00 20.00 Stampli 04/16/2025 0.00 1,362.00 Star Tribune 04/16/2025 0.00 24.00 Stratoguard, LLC 04/16/2025 0.00 230.56 SUBWAY 04/16/2025 0.00 7.35 Sun Country 04/16/2025 0.00 288.58 Survey Monkey 04/16/2025 0.00 192.00 Target 04/16/2025 0.00 73.28 The O.G. Coffee & Wine Bar 04/16/2025 0.00 39.77 Travel Guard Group Inc 04/16/2025 0.00 18.04 U of M Contlearning 04/16/2025 0.00 35.00 United States Plastics Corporation 04/16/2025 0.00 71.13 US Bank Rebate 04/16/2025 0.00 -3,919.47 Utility Solutions Expo 04/16/2025 0.00 750.00 Walgreens 04/16/2025 0.00 3.24 Wal-Mart 04/16/2025 0.00 145.07 WDW Disney Res 04/16/2025 0.00 291.38 WEISSMAN 04/16/2025 0.00 1,116.14 Wild West Hackin' Fest 04/16/2025 0.00 1,150.00 Zoom 04/16/2025 0.00 104.04 ALEX AIR APPARATUS 2 LLC 05/14/2025 0.00 332.53 AMERICAN TIRE DISTRIBUTORS INC 05/14/2025 0.00 90.29 Anne and Tim Cardle 05/14/2025 0.00 30.00 ARAMARK Refreshment Services, LLC 05/14/2025 0.00 1,091.24 Art Partners Group, LLC 05/14/2025 0.00 4,106.97 Beacon Athletics LLC 05/14/2025 0.00 3,000.00 Carver County 05/14/2025 0.00 96,888.03 CENTERPOINT ENERGY MINNEGASCO 05/14/2025 0.00 5,626.34 CenturyLink 05/14/2025 0.00 64.00 Cintas Corporation No. 2 05/14/2025 0.00 86.05 Dinges Fire Company 05/14/2025 0.00 13,539.50 ECM PUBLISHERS INC 05/14/2025 0.00 398.97 Emergency Technical Decon 05/14/2025 0.00 300.00 Ferguson Waterworks #2518 05/14/2025 0.00 305.98 Heritage Shade Tree Consultants, Inc 05/14/2025 0.00 13,281.25 James Farrell 05/14/2025 0.00 100.00 Juli Al-Hilwani 05/14/2025 0.00 403.00 KATH FUEL OIL SERVICE 05/14/2025 0.00 590.00 Kelleher Construction, Inc 05/14/2025 0.00 241,157.50 Lawson Products, Inc. 05/14/2025 0.00 453.56 Metropolitan Council, Env Svcs 05/14/2025 0.00 671,620.95 Minuteman Press 05/14/2025 0.00 280.00 MN DEPT OF LABOR AND INDUSTRY 05/14/2025 0.00 8,749.87 MN Pollution Control Agency 05/14/2025 0.00 400.00 MN VALLEY ELECTRIC COOP 05/14/2025 0.00 273.82 MOTOROLA Solutions, Inc 05/14/2025 0.00 2,221.20 Page 4 of 7 89 Vendor Name Check Date Void Checks Check Amount NOVEL SOLAR THREE, LLC 05/14/2025 0.00 10,622.34 NYSTROM PUBLISHING COMPANY INC 05/14/2025 0.00 8,629.45 OPG-3, Inc 05/14/2025 0.00 38,988.08 PACE ANALYTICAL SERVICES INC 05/14/2025 0.00 351.00 Pioneer Athletics 05/14/2025 0.00 3,240.00 Precision Utilities 05/14/2025 0.00 22,203.75 RAINBOW TREE COMPANY 05/14/2025 0.00 1,132.50 SABRE HEATING & AIR COND. 05/14/2025 0.00 30.00 SCOTT COUNTY TREASURER 05/14/2025 0.00 1,687.50 USA BLUE BOOK 05/14/2025 0.00 2,451.23 VALLEY-RICH CO INC 05/14/2025 0.00 3,154.00 Waste Management of Minnesota, Inc 05/14/2025 0.00 1,587.50 WM MUELLER & SONS INC 05/14/2025 0.00 480.48 ZARNOTH BRUSH WORKS INC 05/14/2025 0.00 3,792.00 CenturyLink 05/21/2025 0.00 62.57 Marco Inc 05/21/2025 0.00 835.00 Ann Fitzgibbons 05/22/2025 0.00 30.00 ARAMARK Refreshment Services, LLC 05/22/2025 0.00 80.98 Bollig & Sons, Inc. 05/22/2025 0.00 500.00 BRAUN INTERTEC CORPORATION 05/22/2025 0.00 1,072.50 BY THE WOODS 05/22/2025 0.00 1,000.00 CAMPBELL KNUTSON 05/22/2025 0.00 16,838.01 CAR-CO AUTO PARTS INC 05/22/2025 0.00 418.45 Carver County 05/22/2025 0.00 1,550.00 Cintas Corporation No. 2 05/22/2025 0.00 84.44 City of Victoria 05/22/2025 0.00 704.90 CUSTOM POOLS 05/22/2025 0.00 500.00 DALCO ENTERPRISES, INC. 05/22/2025 0.00 1,518.68 DEM-CON LANDFILL 05/22/2025 0.00 2,819.44 Earl F Andersen Inc 05/22/2025 0.00 2,900.70 ECM PUBLISHERS INC 05/22/2025 0.00 40.30 Engel Water Testing Inc 05/22/2025 0.00 1,280.00 Ferguson Enterprises, Inc. #1657 05/22/2025 0.00 12.68 Fidelity Security Life 05/22/2025 0.00 343.67 Fire Catt, LLC 05/22/2025 0.00 4,635.54 GOPHER STATE ONE-CALL INC 05/22/2025 0.00 1,047.60 Governance Science Group Inc 05/22/2025 0.00 9,900.00 GRANICUS INC 05/22/2025 8,534.92 0.00 Hach Company 05/22/2025 0.00 599.10 HAWKINS CHEMICAL 05/22/2025 0.00 8,089.04 Headwaters Development LLC 05/22/2025 0.00 8,550.00 HealthPartners, Inc. 05/22/2025 0.00 91,335.69 Indoor Landscapes Inc 05/22/2025 0.00 187.00 Infosend, Inc 05/22/2025 0.00 3,421.75 Innovative Office Solutions LLC 05/22/2025 0.00 304.32 Jacob Pomplun 05/22/2025 0.00 500.00 Janine Newport 05/22/2025 0.00 30.00 Kathryn Biscay 05/22/2025 0.00 50.00 Konen Homes 05/22/2025 0.00 500.00 Lawson Products, Inc. 05/22/2025 0.00 25.86 Lockridge Grindal Nauen P.L.L.P 05/22/2025 0.00 3,333.33 Magic Turf, Inc 05/22/2025 0.00 4,600.00 MERLINS ACE HARDWARE 05/22/2025 0.00 712.91 Page 5 of 7 90 Vendor Name Check Date Void Checks Check Amount Metro Garage Door Company 05/22/2025 0.00 125.00 METROPOLITAN COUNCIL 05/22/2025 0.00 241,707.34 MN FIRE SERVICE CERTIFICATION BOARD 05/22/2025 0.00 300.50 MOSS & BARNETT 05/22/2025 0.00 7,925.50 MTI DISTRIBUTING INC 05/22/2025 0.00 883.00 NvoicePay 05/22/2025 0.00 742.10 Pinnacle Pest Control 05/22/2025 0.00 1,175.00 Premium Waters, Inc 05/22/2025 0.00 4.32 Rent N Save Portable Services 05/22/2025 0.00 1,066.00 Riley Purgatory Bluff Creek Watershed District 05/22/2025 0.00 3,000.00 Shred-N-Go Inc 05/22/2025 0.00 1,575.00 SM HENTGES & SONS 05/22/2025 0.00 178,985.29 SOUTHWEST LOCK & KEY 05/22/2025 0.00 650.25 SRF CONSULTING GROUP INC 05/22/2025 0.00 7,456.61 Taylor Electric Company, LLC 05/22/2025 0.00 6,660.00 TimeSaver Off Site Secretarial, Inc 05/22/2025 0.00 998.00 TruGreen Processing Center 05/22/2025 0.00 1,759.00 USA BLUE BOOK 05/22/2025 0.00 64.32 Water Conservation Services, Inc. 05/22/2025 0.00 403.60 WM MUELLER & SONS INC 05/22/2025 0.00 1,211.21 Hydro-Klean LLC 05/28/2025 0.00 52,194.58 Luke Kegley 05/28/2025 0.00 250.00 MN VALLEY ELECTRIC COOP 05/28/2025 0.00 305.08 Potentia MN Solar 05/28/2025 0.00 8,159.84 VERIZON WIRELESS 05/28/2025 0.00 190.20 XCEL ENERGY INC 05/28/2025 0.00 28,199.00 XCEL ENERGY INC 05/28/2025 0.00 1,172.12 XCEL ENERGY INC 05/28/2025 0.00 3,482.29 Advanced Engineering & Environmental Services, LLC 05/29/2025 0.00 3,780.75 AK Rose Company 05/29/2025 0.00 245.00 Blackburn Manufacturing Company 05/29/2025 0.00 3,549.96 BOLTON & MENK INC 05/29/2025 0.00 19,836.00 Cady Business Techologies 05/29/2025 0.00 592.69 Colonial Life & Accident Insurance Co 05/29/2025 0.00 152.34 Dultmeier Sales LLC 05/29/2025 0.00 251.31 ECM PUBLISHERS INC 05/29/2025 0.00 544.05 Edina Heating & Cooling Inc 05/29/2025 0.00 260.00 EHLERS & ASSOCIATES INC 05/29/2025 0.00 1,500.00 Ferguson Waterworks #2518 05/29/2025 0.00 447.68 Indigo Signs 05/29/2025 0.00 1,620.70 Innovative Basement Authority 05/29/2025 0.00 196.00 Innovative Office Solutions LLC 05/29/2025 0.00 62.47 KATH FUEL OIL SERVICE 05/29/2025 0.00 5,037.60 KIMLEY HORN AND ASSOCIATES INC 05/29/2025 0.00 3,073.50 Kraus-Anderson Construction Company 05/29/2025 0.00 122,820.88 LEAGUE OF MINNESOTA CITIES 05/29/2025 0.00 475.00 Loch Monster Plumbing, LLC 05/29/2025 0.00 6,073.90 Mansfield Oil Company 05/29/2025 0.00 19,112.82 Minnesota Pump Works 05/29/2025 0.00 9,062.60 NAPA AUTO & TRUCK PARTS 05/29/2025 0.00 15.15 North American Safety, Inc. 05/29/2025 0.00 35.85 Pitney Bowes Inc. 05/29/2025 0.00 180.72 Rain for Rent 05/29/2025 0.00 2,986.12 Page 6 of 7 91 Vendor Name Check Date Void Checks Check Amount SCOTT COUNTY TREASURER 05/29/2025 0.00 2,100.00 SEH 05/29/2025 0.00 31,413.76 Silva Screenprinting & Dist, LLC 05/29/2025 0.00 2,597.54 Stericycle, Inc 05/29/2025 0.00 296.33 Waste Management of Minnesota, Inc 05/29/2025 0.00 479.55 WM MUELLER & SONS INC 05/29/2025 0.00 859.95 ZIEGLER INC 05/29/2025 0.00 102.26 Report Total:8,534.92 2,268,372.93 Page 7 of 7 92 AP Check Detail User: dwashburn@chanhassenmn.gov Printed: 5/30/2025 12:59:43 PM Last Name Acct 1 Amount Check Date Description 3CMA 101-1125-4360 400.00 3/18/2025 Membership 3CMA 101-1125-4370 760.00 3/18/2025 Conference 1,160.00 3/18/2025 3CMA 1,160.00 Acme Tools 701-0000-4260 181.78 4/16/2025 Milwaukee Packout 2 drawer Packout Multi Dept Acme Tools 700-0000-4260 181.78 4/16/2025 Milwaukee Packout 2 drawer Packout Multi Dept 363.56 4/16/2025 Acme Tools 363.56 Advanced Engineering & Environmental Services, LLC 701-0000-4300 1,890.37 5/29/2025 SCADA well lift station 3 support Advanced Engineering & Environmental Services, LLC 700-0000-4300 1,890.38 5/29/2025 SCADA well lift station 3 support 3,780.75 5/29/2025 Advanced Engineering & Environmental Services, LLC 3,780.75 AK Rose Company 101-1425-4300 245.00 5/29/2025 professional framing of arbor day poster winner 245.00 5/29/2025 AK Rose Company 245.00 ALEX AIR APPARATUS 2 LLC 101-1220-4530 332.53 5/14/2025 Quarterly Air Test for the SCBA fill station AP - Check Detail (5/30/2025)Page 1 of 58 93 Last Name Acct 1 Amount Check Date Description 332.53 5/14/2025 ALEX AIR APPARATUS 2 LLC 332.53 Al-Hilwani Juli 101-1530-4347 300.00 5/14/2025 10 - Zuzak Al-Hilwani Juli 101-1539-4343 103.00 5/14/2025 Beginner PB 5-10 and Fit for Life 5/6 403.00 5/14/2025 Al-Hilwani Juli 403.00 Amazon 101-1125-4120 61.07 3/18/2025 Tape Measure/Kasinshooting Super Load 20Kg Quick Amazon 700-0000-4120 148.96 3/18/2025 Engine coolant preheater Amazon 101-1611-4130 65.89 3/18/2025 FebFest handwarmers rubber bands Amazon 101-1220-4165 77.15 3/18/2025 Soaps Detergents Garbage Bags Sponges Amazon 101-1220-4240 64.99 3/18/2025 Duty Pants Amazon 101-1220-4240 64.34 3/18/2025 Duty Pants Amazon 101-1220-4372 19.95 3/18/2025 Liquid for Fog Machine/Smoke for Training Amazon 101-1220-4142 224.25 3/18/2025 Go Bag Tags Amazon 101-1120-4110 36.06 3/18/2025 3 ring binders/dividers for disaster recovery doc Amazon 101-1160-4132 146.32 3/18/2025 Keyboard for Ashley McGovern and 1 for stock Amazon 101-1120-4110 52.89 3/18/2025 Feb fest printer toner Amazon 101-1160-4132 25.99 3/18/2025 iPad Stylus for Fire Dept Training iPad Amazon 101-1120-4110 8.53 3/18/2025 Half-Sized Legal Pads Amazon 101-1120-4110 39.51 3/18/2025 Clorox Wipes for Fountain Conference Room Amazon 101-1530-4150 24.99 3/18/2025 Spray nozzles for chemicals Amazon 101-1807-4130 7.99 3/18/2025 eye glass holders Amazon 700-7019-4120 179.28 3/18/2025 Screwdriver Set/Socket Set/AC/DC Voltage Measure Amazon 101-1120-4110 185.89 3/18/2025 HP Toner for Jodi Amazon 101-1125-4120 6.59 3/18/2025 Quick Release Connector Buckle Amazon 101-1550-4120 384.02 3/18/2025 Garbage can attachments (addition) Amazon 700-7043-4150 31.98 3/18/2025 WWTP Travel Case for Paint Project Respirator Amazon 101-1220-4121 31.06 3/18/2025 Coat Rack Amazon 101-1160-4530 6.86 3/18/2025 Screen protector for Charlie Siegle Galaxy S25 Amazon 101-1160-4207 12.24 3/18/2025 Monthly AWS charge Amazon 101-1537-4130 9.98 3/18/2025 Royal Ball Photo Booth Props Amazon 101-1120-4110 27.90 3/18/2025 Label writer printer labels Amazon 101-1220-4290 16.32 3/18/2025 Shaving Supplies for Fire Response Amazon 700-7019-4510 31.38 3/18/2025 EWTP Big Gap Filler Insulate Foam Sealant Amazon 101-1310-4120 71.82 3/18/2025 Safety Glasses AP - Check Detail (5/30/2025)Page 2 of 58 94 Last Name Acct 1 Amount Check Date Description Amazon 101-1120-4110 -22.39 3/18/2025 Returned PW Disposable Bowls Amazon 101-1160-4133 47.89 3/18/2025 External hard drive DR Matt U Amazon 101-1530-4130 28.96 3/18/2025 Chair glides Amazon 101-1120-4110 7.86 3/18/2025 Ziploc Bags for Sam Amazon 101-1320-4140 25.64 3/18/2025 Sharpie Oil-Based Paint Marker Amazon 101-1120-4110 21.24 3/18/2025 PW Paper Bowls 200 Count Amazon 101-1800-4128 29.30 3/18/2025 Adult Floor Hockey Glasses Amazon 101-1160-4530 25.36 3/18/2025 Replacement Cell Phone Case/BeltClip Amazon 101-1220-4372 19.95 3/18/2025 Liquid for Fog Machine/Smoke for Training Amazon 700-0000-4120 281.76 3/18/2025 Engine Coolant preheater Amazon 101-1220-4142 48.01 3/18/2025 Webbing Amazon 101-1220-4240 64.34 3/18/2025 Duty Pants Amazon 101-1120-4110 28.83 3/18/2025 Office Supplies; Colored Paper Amazon 101-1312-4510 336.00 3/18/2025 Garage door openers for PW Amazon 101-1220-4240 308.70 3/18/2025 Duty Pants Amazon 700-7043-4150 134.00 3/18/2025 WWTP Organic Vapor/Acid Gas Cartridge Amazon 101-1170-4121 82.97 3/18/2025 Filing Cabinet for Rec Center requested by Jodi Amazon 101-1160-4310 115.42 3/18/2025 Headset for Go To Phone System Amazon 101-1220-4142 48.01 3/18/2025 Webbing Amazon 101-1220-4290 21.77 3/18/2025 Certificate Holders 3,717.82 3/18/2025 Amazon 101-1220-4121 70.10 4/16/2025 Clocks & Lock Box Amazon 101-1160-4132 24.66 4/16/2025 Bluetooth mouse - Brett McLellan Amazon 101-1312-4510 53.63 4/16/2025 Boiler inspection correction Amazon 700-0000-4120 -281.76 4/16/2025 Product returned-coolant preheater Amazon 101-1220-4165 20.68 4/16/2025 Garbage Bags Amazon 101-1120-4110 35.87 4/16/2025 Paper Clips Forks Index Cards Amazon 101-1160-4530 33.89 4/16/2025 Public Works Humidifier filters Amazon 101-1220-4240 -64.34 4/16/2025 Returned Duty Pants Amazon 701-0000-4140 14.85 4/16/2025 Magnetic Socket Organizer Set 3pcs Amazon 101-1220-4510 122.41 4/16/2025 Outdoor TV Antenna Amazon 701-0000-4120 286.44 4/16/2025 Coolant preheater Amazon 101-1160-4530 8.99 4/16/2025 Video adapter used for maintenance Amazon 101-1160-4132 114.99 4/16/2025 On hand materials and switch for Fire Station Amazon 101-1320-4140 18.30 4/16/2025 LED bulbs Amazon 101-1539-4130 131.88 4/16/2025 Puzzles for Puzzlepalooza Amazon 701-0000-4140 27.44 4/16/2025 Car Power Inverter 12v to 110V Amazon 701-0000-4150 129.22 4/16/2025 Locating SIM cards Amazon 700-0000-4140 27.43 4/16/2025 Car Power Inverter 12v to 110V Amazon 700-0000-4705 407.98 4/16/2025 PW Utilities Office Computer display and cable Amazon 101-1310-4120 277.02 4/16/2025 Hard hats/Safety Vests AP - Check Detail (5/30/2025)Page 3 of 58 95 Last Name Acct 1 Amount Check Date Description Amazon 101-1160-4530 21.22 4/16/2025 Replacement Apple Pencil Tips Amazon 101-1120-4110 9.39 4/16/2025 Office Supplies; Pens for Finance Amazon 701-0000-4140 14.40 4/16/2025 Socket set Amazon 700-0000-4140 14.84 4/16/2025 Magnetic Socket Organizer Set 3pcs Amazon 101-1420-4130 184.03 4/16/2025 Food Wraps MN Field Guide Sign Holder Amazon 101-1220-4142 14.68 4/16/2025 Batteries Amazon 101-1612-4130 525.00 4/16/2025 Easter Egg Candy Hunt eggs Amazon 101-1220-4240 64.34 4/16/2025 Duty Pants Amazon 101-1160-4132 37.82 4/16/2025 Laptop bag - Brett McLellan Amazon 101-1220-4372 202.93 4/16/2025 Fog Machine - Simulate Smoke Amazon 101-1130-4360 349.00 4/16/2025 Amazon Prime Membership Amazon 700-0000-4140 14.39 4/16/2025 Socket set Amazon 101-1160-4207 12.24 4/16/2025 Sewer Video Televising Files - Access Fee - Feb Amazon 101-1160-4530 53.54 4/16/2025 On hand materials and switch for Fire Station Amazon 101-1160-4530 13.96 4/16/2025 Screen Protectors used for maintenance Amazon 101-1220-4121 52.86 4/16/2025 Cork Bulletin Boards Amazon 700-0000-4550 83.18 4/16/2025 Curb box tools Amazon 700-0000-4150 129.22 4/16/2025 Locating SIM cards Amazon 101-1220-4290 43.99 4/16/2025 Ink for Printer Amazon 101-1120-4110 19.30 4/16/2025 Self Seal Envelopes Document Holder Amazon 101-1120-4110 9.20 4/16/2025 Ink Refill for Finance Stamp Amazon 101-1120-4110 203.57 4/16/2025 HP Toner 3,532.78 4/16/2025 Amazon 7,250.60 American Carnival Mart 101-1612-4130 406.80 4/16/2025 Easter Egg Candy Hunt eggs 406.80 4/16/2025 American Carnival Mart 406.80 American Planning Association 101-1420-4370 785.00 3/18/2025 APA National Conference Registration 785.00 3/18/2025 American Planning Association 785.00 American Public Works Association 101-1320-4370 -670.00 4/16/2025 APWA Snow Conference Refund AP - Check Detail (5/30/2025)Page 4 of 58 96 Last Name Acct 1 Amount Check Date Description American Public Works Association 101-1120-4110 21.00 4/16/2025 NPWW poster American Public Works Association 101-1320-4370 670.00 4/16/2025 APWA Snow Conference registration American Public Works Association 101-1320-4370 670.00 4/16/2025 APWA Snow Conference 691.00 4/16/2025 American Public Works Association 691.00 AMERICAN TIRE DISTRIBUTORS INC 700-0000-4140 90.29 5/14/2025 tire 90.29 5/14/2025 AMERICAN TIRE DISTRIBUTORS INC 90.29 ARAMARK Refreshment Services, LLC 101-1120-4110 132.33 5/14/2025 Fire Coffee Order ARAMARK Refreshment Services, LLC 101-1120-4110 394.63 5/14/2025 Public Works Coffee Order ARAMARK Refreshment Services, LLC 101-1120-4110 564.28 5/14/2025 Front Desk + Building Coffee Order 1,091.24 5/14/2025 ARAMARK Refreshment Services, LLC 101-1120-4110 80.98 5/22/2025 Water Filter PW 80.98 5/22/2025 ARAMARK Refreshment Services, LLC 1,172.22 Arrowwood Resort 101-1220-4381 376.68 3/18/2025 Rindahl hotel room-Alexandria Training 376.68 3/18/2025 Arrowwood Resort 376.68 Art Partners Group, LLC 101-1312-4300 4,106.97 5/14/2025 LOS wall at PW Lobby 4,106.97 5/14/2025 Art Partners Group, LLC 4,106.97 AP - Check Detail (5/30/2025)Page 5 of 58 97 Last Name Acct 1 Amount Check Date Description Astleford International 101-1320-4140 69.48 3/18/2025 O-rings / gaskets 69.48 3/18/2025 Astleford International 101-1320-4140 84.00 4/16/2025 129 service - install breather system Astleford International 101-1320-4140 438.03 4/16/2025 Crankcase housing 522.03 4/16/2025 Astleford International 591.51 B&H Photo 101-1125-4260 454.09 3/18/2025 Camera equipment B&H Photo 101-1125-4260 311.01 3/18/2025 Video equipment 765.10 3/18/2025 B&H Photo 765.10 Batteries Plus 700-7043-4120 68.45 4/16/2025 WWTP 12V 18AH LEAD 68.45 4/16/2025 Batteries Plus 68.45 Beacon Athletics LLC 101-1550-4120 3,000.00 5/14/2025 Batting cage nets for Lake Ann (replacements) 3,000.00 5/14/2025 Beacon Athletics LLC 3,000.00 Best Buy 101-1160-4131 28.98 3/18/2025 HP Printer for Guest Front Desk and Feb Fest Best Buy 700-0000-4705 429.99 3/18/2025 Canon Printer for West Water Plant 458.97 3/18/2025 Best Buy 458.97 Biscay Kathryn 101-1425-3671 50.00 5/22/2025 Princeton Elm Tree Sale refund AP - Check Detail (5/30/2025)Page 6 of 58 98 Last Name Acct 1 Amount Check Date Description 50.00 5/22/2025 Biscay Kathryn 50.00 Bitly, Inc 101-1125-4229 35.00 3/18/2025 Bitly subscription 35.00 3/18/2025 Bitly, Inc 101-1125-4229 35.00 4/16/2025 Bitly subscription 35.00 4/16/2025 Bitly, Inc 70.00 Blackburn Manufacturing Company 700-0000-4150 1,462.86 5/29/2025 locating supplies Blackburn Manufacturing Company 700-0000-4150 312.12 5/29/2025 locate supplies Blackburn Manufacturing Company 701-0000-4150 1,462.86 5/29/2025 locating supplies Blackburn Manufacturing Company 701-0000-4150 312.12 5/29/2025 locate supplies 3,549.96 5/29/2025 Blackburn Manufacturing Company 3,549.96 Bollig & Sons, Inc.101-0000-2073 500.00 5/22/2025 Erosion escrow 450 Indian Hill Rd #620050 500.00 5/22/2025 Bollig & Sons, Inc. 500.00 BOLTON & MENK INC 701-6053-4303 1,326.72 5/29/2025 #25-01 -Sanitary @ 8% BOLTON & MENK INC 601-6048-4300 1,967.79 5/29/2025 Crimson Bay Rd -PMP @ 67% BOLTON & MENK INC 601-6053-4303 9,950.40 5/29/2025 #25-01 -PMP @ 60% BOLTON & MENK INC 720-6053-4303 3,648.48 5/29/2025 #25-01 -Storm @ 22% BOLTON & MENK INC 720-6048-4300 205.59 5/29/2025 Crimson Bay Rd -Storm @ 7% BOLTON & MENK INC 700-6048-4300 381.81 5/29/2025 Crimson Bay Rd -Water @ 13% BOLTON & MENK INC 700-6053-4303 1,658.40 5/29/2025 #25-01 -Water @ 10% BOLTON & MENK INC 701-6048-4300 381.81 5/29/2025 Crimson Bay Rd -Sanitary @ 13% BOLTON & MENK INC 701-0000-4303 315.00 5/29/2025 CIPP Specification-Design Asst AP - Check Detail (5/30/2025)Page 7 of 58 99 Last Name Acct 1 Amount Check Date Description 19,836.00 5/29/2025 BOLTON & MENK INC 19,836.00 BRAUN INTERTEC CORPORATION 601-6053-4303 643.50 5/22/2025 #25-01 Pavement & GeoTech Eval-PMP @ 60% BRAUN INTERTEC CORPORATION 701-6053-4303 85.80 5/22/2025 #25-01 Pavement & GeoTech Eval-Sanitary @ 8% BRAUN INTERTEC CORPORATION 720-6053-4303 235.95 5/22/2025 #25-01 Pavement & GeoTech Eval-Storm @ 22% BRAUN INTERTEC CORPORATION 700-6053-4303 107.25 5/22/2025 #25-01 Pavement & GeoTech Eval-Water @ 10% 1,072.50 5/22/2025 BRAUN INTERTEC CORPORATION 1,072.50 BuyRailings 101-1550-4120 109.86 3/18/2025 Railing fittings (repair) 109.86 3/18/2025 BuyRailings 109.86 BY THE WOODS 101-0000-2073 500.00 5/22/2025 Erosion escrow 8109 Dakota Ln #625215 BY THE WOODS 101-0000-2073 500.00 5/22/2025 Erosion escrow 3091 Dartmouth Dr #642298 1,000.00 5/22/2025 BY THE WOODS 1,000.00 Cady Business Techologies 101-1160-4310 592.69 5/29/2025 Mitel Phone System Maint - May 592.69 5/29/2025 Cady Business Techologies 592.69 CAMPBELL KNUTSON 101-1140-4302 16,838.01 5/22/2025 Legal Services-April 2025 16,838.01 5/22/2025 AP - Check Detail (5/30/2025)Page 8 of 58 100 Last Name Acct 1 Amount Check Date Description CAMPBELL KNUTSON 16,838.01 CAR-CO AUTO PARTS INC 101-1170-4150 393.05 5/22/2025 locker paint CAR-CO AUTO PARTS INC 101-1170-4150 25.40 5/22/2025 paint solvent 418.45 5/22/2025 CAR-CO AUTO PARTS INC 418.45 Cardle Anne and Tim 101-1425-3640 30.00 5/14/2025 Community Garden Refund 30.00 5/14/2025 Cardle Anne and Tim 30.00 Caribou Coffee 101-1611-4130 111.03 3/18/2025 FebFest volunteer coffee 111.03 3/18/2025 Caribou Coffee 111.03 Carver County 101-1420-4300 2.00 4/16/2025 Document download from Carver Cty Recorders office 2.00 4/16/2025 Carver County 601-6303-4801 96,888.03 5/14/2025 JPA-CSAH 18 Reconstruction (TH41-Galpin Blvd) 96,888.03 5/14/2025 Carver County 482-0000-4300 750.00 5/22/2025 County TIF Admin Charge Carver County 480-0000-4300 450.00 5/22/2025 County TIF Admin Charge Carver County 481-0000-4300 350.00 5/22/2025 County TIF Admin Charge 1,550.00 5/22/2025 Carver County 98,440.03 Carver County Environmental Center 101-1220-4152 171.78 4/16/2025 Hazardous Fluid Recycling AP - Check Detail (5/30/2025)Page 9 of 58 101 Last Name Acct 1 Amount Check Date Description 171.78 4/16/2025 Carver County Environmental Center 171.78 Carver County Historical Society 101-1560-4343 25.00 4/16/2025 Speaker Fee - Carver Co Historical Society 25.00 4/16/2025 Carver County Historical Society 25.00 CDW Government 101-1160-4131 433.21 4/16/2025 Calibrated Monitor for Sarah Thiessen 433.21 4/16/2025 CDW Government 433.21 CENTERPOINT ENERGY MINNEGASCO 101-1530-4321 201.38 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 101-1220-4321 476.31 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 701-0000-4321 123.18 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 101-1312-4321 764.67 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 101-1170-4321 665.21 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 101-1190-4321 1,326.71 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 101-1550-4321 279.62 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 700-7043-4321 1,029.40 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 101-1600-4321 21.91 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 700-0000-4321 151.48 5/14/2025 Gas Charges CENTERPOINT ENERGY MINNEGASCO 700-7019-4321 586.47 5/14/2025 Gas Charges 5,626.34 5/14/2025 CENTERPOINT ENERGY MINNEGASCO 5,626.34 CenturyLink 700-0000-4310 32.00 5/14/2025 Telephone & Communication Charges CenturyLink 701-0000-4310 32.00 5/14/2025 Telephone & Communication Charges 64.00 5/14/2025 CenturyLink 700-7043-4310 62.57 5/21/2025 Telephone & Communication Charges AP - Check Detail (5/30/2025)Page 10 of 58 102 Last Name Acct 1 Amount Check Date Description 62.57 5/21/2025 CenturyLink 126.57 Champps 101-1370-4381 68.11 3/18/2025 Lunch during DOT training 68.11 3/18/2025 Champps 68.11 Chanhassen Dinner Theatre 101-1560-4342 2,200.24 3/18/2025 Trip tickets - Grease - Chan Dinner Theater Chanhassen Dinner Theatre 101-1560-4342 1,999.00 3/18/2025 Trip tickets - Grease - Chan Dinner Theater 4,199.24 3/18/2025 Chanhassen Dinner Theatre 4,199.24 Chick-Fil-A 101-1110-4372 271.37 3/18/2025 City Council Meal 271.37 3/18/2025 Chick-Fil-A 271.37 Chipotle Mexican Grill 101-1110-4372 191.63 3/18/2025 City Council Meal 191.63 3/18/2025 Chipotle Mexican Grill 191.63 Cintas Corporation No. 2 101-1312-4510 86.05 5/14/2025 first aid kits 86.05 5/14/2025 Cintas Corporation No. 2 101-1312-4510 84.44 5/22/2025 safety 84.44 5/22/2025 AP - Check Detail (5/30/2025)Page 11 of 58 103 Last Name Acct 1 Amount Check Date Description Cintas Corporation No. 2 170.49 City of Victoria 101-1537-4345 704.90 5/22/2025 Superhero Party 704.90 5/22/2025 City of Victoria 704.90 Colonial Life & Accident Insurance Co 701-0000-2008 45.84 5/29/2025 May premium Colonial Life & Accident Insurance Co 700-0000-2008 106.50 5/29/2025 May premium 152.34 5/29/2025 Colonial Life & Accident Insurance Co 152.34 Core & Main LP 700-0000-4550 224.82 4/16/2025 Curb box tools 224.82 4/16/2025 Core & Main LP 224.82 Costco Wholesale 101-1807-4130 12.99 4/16/2025 Goldfish Costco Wholesale 101-1120-4372 211.53 4/16/2025 Pancake Breakfast Costco Wholesale 101-1539-4130 97.57 4/16/2025 Puzzle Palooza salad water snacks Costco Wholesale 101-1806-4130 26.97 4/16/2025 End of season Rice Krispies Costco Wholesale 101-1220-4152 216.74 4/16/2025 Ice Machine Costco Wholesale 101-1807-4130 75.48 4/16/2025 Pizza for Kids Night Out 641.28 4/16/2025 Costco Wholesale 641.28 Crooked Pint 101-1123-4381 20.30 3/18/2025 Chamber First Responders Meeting/Lunch 20.30 3/18/2025 AP - Check Detail (5/30/2025)Page 12 of 58 104 Last Name Acct 1 Amount Check Date Description Crooked Pint 20.30 Cru Dance 101-1534-4356 4,778.00 4/16/2025 Cru Dance Competition Fees 4,778.00 4/16/2025 Cru Dance 4,778.00 Cub Foods 101-1220-4142 23.94 3/18/2025 Water Cub Foods 101-1320-4120 41.70 3/18/2025 Water Cub Foods 101-1701-4112 262.62 3/18/2025 Pop Candy and Cookies - Sweetheart Dance Cub Foods 101-1120-4372 30.63 3/18/2025 Snacks for Carver County Clerks Meeting 358.89 3/18/2025 Cub Foods 700-7019-4160 8.34 4/16/2025 EWTP Distilled Water 8.34 4/16/2025 Cub Foods 367.23 CUSTOM POOLS 101-0000-2073 500.00 5/22/2025 Erosion escrow 4000 Stratford Rdg #605322 500.00 5/22/2025 CUSTOM POOLS 500.00 DALCO ENTERPRISES, INC.101-1120-4110 1,518.68 5/22/2025 Cleaning Supplies 1,518.68 5/22/2025 DALCO ENTERPRISES, INC. 1,518.68 Davanni's 101-1701-4112 569.44 3/18/2025 Lasagna & Pasta - Sweetheart Dance 569.44 3/18/2025 AP - Check Detail (5/30/2025)Page 13 of 58 105 Last Name Acct 1 Amount Check Date Description Davanni's 569.44 Dell 101-1160-4131 168.18 3/18/2025 Monitors and Dock for new facilities hire-Gustafson Dell 101-1160-4131 282.12 3/18/2025 Monitors and Dock for new facilities hire-Gustafson Dell 101-1160-4131 8,027.35 3/18/2025 Engineering Laptop Upgrades 8,477.65 3/18/2025 Dell 8,477.65 Delta Airlines 101-1320-4381 418.97 4/16/2025 APWA Snow Conference flight Delta Airlines 101-1320-4381 19.99 4/16/2025 APWA Snow Conference flight 438.96 4/16/2025 Delta Airlines 438.96 DEM-CON LANDFILL 101-1320-4150 2,819.44 5/22/2025 Street sweeping 2,819.44 5/22/2025 DEM-CON LANDFILL 2,819.44 Dinges Fire Company 201-0000-4705 13,539.50 5/14/2025 Virtual reality fire extinguisher trainer 13,539.50 5/14/2025 Dinges Fire Company 13,539.50 DPS Firefighter Licensing 101-1220-4360 50.00 3/18/2025 MN FF License A Boote 50.00 3/18/2025 DPS Firefighter Licensing 50.00 Dultmeier Sales LLC 101-1320-4140 251.31 5/29/2025 hose for vactor AP - Check Detail (5/30/2025)Page 14 of 58 106 Last Name Acct 1 Amount Check Date Description 251.31 5/29/2025 Dultmeier Sales LLC 251.31 DX Events 101-1534-4356 7,402.32 4/16/2025 DX Dance Competition fees 7,402.32 4/16/2025 DX Events 7,402.32 Earl F Andersen Inc 420-1310-4711 703.15 5/22/2025 delineators for bump out on kerber traffic safety Earl F Andersen Inc 420-1310-4711 1,655.95 5/22/2025 traffic safety kerber blvd Earl F Andersen Inc 420-1310-4711 541.60 5/22/2025 traffic safety kerber blvd 2,900.70 5/22/2025 Earl F Andersen Inc 2,900.70 ECM PUBLISHERS INC 101-1120-4336 141.05 5/14/2025 Ordinance 742 Publication ECM PUBLISHERS INC 101-1420-4336 40.30 5/14/2025 PH Notice 2025-04 ECM PUBLISHERS INC 101-1310-4336 128.96 5/14/2025 #25-01 Assessment PH Notice ECM PUBLISHERS INC 101-1420-4336 40.30 5/14/2025 Publication of PH for Accessory Dwelling ECM PUBLISHERS INC 101-1420-4336 48.36 5/14/2025 Public Hearing notice 2025-09 398.97 5/14/2025 ECM PUBLISHERS INC 101-1120-4336 40.30 5/22/2025 Publication of RFP for Family and Medical Leave 40.30 5/22/2025 ECM PUBLISHERS INC 101-1120-4336 36.27 5/29/2025 Publication of Fee Schedule PH ECM PUBLISHERS INC 101-1120-4336 40.30 5/29/2025 Publication of PH Hope Breakfast Bar ECM PUBLISHERS INC 101-1120-4336 40.30 5/29/2025 Publication of PH for City Code ADUs ECM PUBLISHERS INC 101-1120-4336 40.30 5/29/2025 Publication of PH Santa Ver Dr 25-07 ECM PUBLISHERS INC 101-1310-4336 386.88 5/29/2025 Ad for Bids -MMSW 544.05 5/29/2025 AP - Check Detail (5/30/2025)Page 15 of 58 107 Last Name Acct 1 Amount Check Date Description ECM PUBLISHERS INC 983.32 Economic Development Assn of MN 101-1420-4370 395.00 3/18/2025 EDAM winter conference registration - E Maass Economic Development Assn of MN 101-1420-4370 395.00 3/18/2025 EDAM winter conference registration - R Jeske 790.00 3/18/2025 Economic Development Assn of MN 790.00 Edgetek Hockey 101-1220-4120 53.61 3/18/2025 Tape for wrapping tools 53.61 3/18/2025 Edgetek Hockey 53.61 Edina Heating & Cooling Inc 101-1170-4510 260.00 5/29/2025 Air Conditioner Repair 260.00 5/29/2025 Edina Heating & Cooling Inc 260.00 Ehlers 101-1130-4370 250.00 3/18/2025 Ehlers Seminar - K Grinnell 250.00 3/18/2025 Ehlers 250.00 EHLERS & ASSOCIATES INC 701-7054-4300 500.00 5/29/2025 Arbitrage report EHLERS & ASSOCIATES INC 720-7054-4300 500.00 5/29/2025 Arbitrage report EHLERS & ASSOCIATES INC 700-7054-4300 500.00 5/29/2025 Arbitrage report 1,500.00 5/29/2025 EHLERS & ASSOCIATES INC 1,500.00 Emergency Technical Decon 101-1220-4530 300.00 5/14/2025 Altercations to turnout gear-M. Smith and B. Rowan AP - Check Detail (5/30/2025)Page 16 of 58 108 Last Name Acct 1 Amount Check Date Description 300.00 5/14/2025 Emergency Technical Decon 300.00 Engel Water Testing Inc 700-0000-4300 1,280.00 5/22/2025 month water samples 1,280.00 5/22/2025 Engel Water Testing Inc 1,280.00 Facebook 101-1800-4375 24.95 3/18/2025 Facebook ad for Chan Rec Sports Facebook 101-1611-4340 6.13 3/18/2025 Facebook ads for FebFest Facebook 101-1611-4340 33.78 3/18/2025 Facebook ads for FebFest 64.86 3/18/2025 Facebook 101-1800-4375 19.95 4/16/2025 Facebook ad for Chan Rec Sports Facebook 101-1611-4340 60.02 4/16/2025 Facebook ads for FebFest 79.97 4/16/2025 Facebook 144.83 Farrell James 700-7204-4901 100.00 5/14/2025 WaterWise Rebate -Clothes Washer 100.00 5/14/2025 Farrell James 100.00 Ferguson Enterprises, Inc. #1657 700-0000-4550 12.68 5/22/2025 3/4 fitting 12.68 5/22/2025 Ferguson Enterprises, Inc. #1657 12.68 Ferguson Waterworks #2518 101-1320-4240 305.98 5/14/2025 muck boots for Dylan and Dalton AP - Check Detail (5/30/2025)Page 17 of 58 109 Last Name Acct 1 Amount Check Date Description 305.98 5/14/2025 Ferguson Waterworks #2518 700-0000-4550 447.68 5/29/2025 water supplies nut 447.68 5/29/2025 Ferguson Waterworks #2518 753.66 Fidelity Security Life 720-0000-2007 6.63 5/22/2025 Vision insurance-May 2025 Fidelity Security Life 700-0000-2007 26.35 5/22/2025 Vision insurance-May 2025 Fidelity Security Life 101-0000-2007 301.58 5/22/2025 Vision insurance-May 2025 Fidelity Security Life 701-0000-2007 9.11 5/22/2025 Vision insurance-May 2025 343.67 5/22/2025 Fidelity Security Life 343.67 Fire Catt, LLC 101-1220-4530 4,635.54 5/22/2025 Hose Testing 4,635.54 5/22/2025 Fire Catt, LLC 4,635.54 Fitzgibbons Ann 101-1425-3640 30.00 5/22/2025 Garden Plot refund 30.00 5/22/2025 Fitzgibbons Ann 30.00 Fleet Farm 101-1550-4120 200.44 3/18/2025 Ice spikes (restock) Fleet Farm 101-1320-4120 34.88 3/18/2025 Fuel for small vactor heater Fleet Farm 101-1550-4120 360.79 3/18/2025 Ice spikes (restock) 596.11 3/18/2025 Fleet Farm 101-1550-4150 25.99 4/16/2025 Restock - bedding - woodduck houses AP - Check Detail (5/30/2025)Page 18 of 58 110 Last Name Acct 1 Amount Check Date Description 25.99 4/16/2025 Fleet Farm 622.10 Foster Bros Marine 101-1550-4120 661.96 3/18/2025 Paddle boat floor (repairs) 661.96 3/18/2025 Foster Bros Marine 661.96 FotoGenic 101-1701-4345 589.00 3/18/2025 Photo Booth - Sweetheart Dance 589.00 3/18/2025 FotoGenic 589.00 FSMN/Menuetta 101-1120-4300 33.50 4/16/2025 New Hire Polo 33.50 4/16/2025 FSMN/Menuetta 33.50 FTD 101-1120-4300 125.10 3/18/2025 Flowers for Councilmember Schubert and Family 125.10 3/18/2025 FTD 101-1120-4300 39.99 4/16/2025 FTD Plus Membership 39.99 4/16/2025 FTD 165.09 Full Source 701-0000-4150 346.68 3/18/2025 Paint supplies Full Source 700-0000-4150 346.69 3/18/2025 Paint supplies 693.37 3/18/2025 AP - Check Detail (5/30/2025)Page 19 of 58 111 Last Name Acct 1 Amount Check Date Description Full Source 693.37 Fusion Learning Partners 101-1310-4360 300.00 3/18/2025 CEAM Dues Fusion Learning Partners 101-1310-4370 1,350.00 3/18/2025 CEAM Conference 1,650.00 3/18/2025 Fusion Learning Partners 1,650.00 Global Industrial Solutions 700-0000-4150 109.25 3/18/2025 supplies (soap dispenser and refills) Global Industrial Solutions 701-0000-4150 109.26 3/18/2025 supplies (soap dispenser and refills) 218.51 3/18/2025 Global Industrial Solutions 218.51 Go To Joinme 101-1160-4310 9,833.88 3/18/2025 Poly Phones & Headsets - GoTo Phone System 9,833.88 3/18/2025 Go To Joinme 9,833.88 GOPHER STATE ONE-CALL INC 700-0000-4300 523.80 5/22/2025 Utility locates-April 2025 GOPHER STATE ONE-CALL INC 701-0000-4300 523.80 5/22/2025 Utility locates-April 2025 1,047.60 5/22/2025 GOPHER STATE ONE-CALL INC 1,047.60 Governance Science Group Inc 101-1125-4224 9,900.00 5/22/2025 Annual Subscription-FlashVote 9,900.00 5/22/2025 Governance Science Group Inc 9,900.00 Government Finance Officers Association 101-1130-4360 225.00 3/18/2025 GFOA City Membership Renewal Government Finance Officers Association 101-1130-4370 75.00 3/18/2025 GFOA Comp Absences Webinar 2025-02-11 AP - Check Detail (5/30/2025)Page 20 of 58 112 Last Name Acct 1 Amount Check Date Description 300.00 3/18/2025 Government Finance Officers Association 101-1130-4301 445.00 4/16/2025 GFOA - Budget Review Application Fee 445.00 4/16/2025 Government Finance Officers Association 745.00 Government Social Media, LLC 101-1125-4370 1,428.00 3/18/2025 Conference - D Zoromski S Thiessen Government Social Media, LLC 101-1125-4360 99.00 3/18/2025 Membership - P Gavin 1,527.00 3/18/2025 Government Social Media, LLC 1,527.00 GP Filter 101-1530-4150 170.98 4/16/2025 Drinking fountain filters 170.98 4/16/2025 GP Filter 170.98 Grainger 700-7043-4510 111.70 3/18/2025 blade/fan (part) Grainger 700-7043-4510 55.85 3/18/2025 blade/fan (part) 167.55 3/18/2025 Grainger 701-0000-4150 119.37 4/16/2025 Siphon spray gun 119.37 4/16/2025 Grainger 286.92 Grammarly 101-1125-4229 900.00 3/18/2025 Grammarly subscription 900.00 3/18/2025 AP - Check Detail (5/30/2025)Page 21 of 58 113 Last Name Acct 1 Amount Check Date Description Grammarly 900.00 Grand Hyatt Denver 101-1120-4381 530.14 4/16/2025 ICMA Reimagined Hotel Costs 530.14 4/16/2025 Grand Hyatt Denver 530.14 Grundens USA 700-0000-4240 65.00 4/16/2025 B Butterfield bibs Grundens USA 701-0000-4240 64.99 4/16/2025 B Butterfield bibs 129.99 4/16/2025 Grundens USA 129.99 Hach Company 700-7019-4160 498.80 3/18/2025 EWTP Chemicals 498.80 3/18/2025 Hach Company 700-7019-4160 225.52 4/16/2025 EWTP Chemkey 25 pcs Free Chlorine Hach Company 700-7019-4160 360.90 4/16/2025 EWTP Chemkey 25 pc Fluoride Hach Company 700-7019-4160 228.72 4/16/2025 EWTP Chemkey 25 pc Chlorine Hach Company 700-7019-4160 57.45 4/16/2025 EWTP Chemkey 25 pc Nitrite 872.59 4/16/2025 Hach Company 700-7043-4160 599.10 5/22/2025 chemicals 599.10 5/22/2025 Hach Company 1,970.49 HAWKINS CHEMICAL 700-7043-4160 8,089.04 5/22/2025 west water treatment Chemicals 8,089.04 5/22/2025 HAWKINS CHEMICAL 8,089.04 AP - Check Detail (5/30/2025)Page 22 of 58 114 Last Name Acct 1 Amount Check Date Description Headwaters Development LLC 101-1420-3602 1,350.00 5/22/2025 Refund Development Fees Headwaters Development LLC 101-0000-2076 5,000.00 5/22/2025 Refund TIF Security Escrow Headwaters Development LLC 400-0000-3809 200.00 5/22/2025 Refund Sign Rent Headwaters Development LLC 101-1420-3605 2,000.00 5/22/2025 Refund Recording Fees 8,550.00 5/22/2025 Headwaters Development LLC 8,550.00 HealthPartners, Inc.720-0000-2012 1,297.56 5/22/2025 Health Insurance-June 2025 HealthPartners, Inc.701-0000-2013 336.40 5/22/2025 Dental Insurance-June 2025 HealthPartners, Inc.720-0000-2013 96.08 5/22/2025 Dental Insurance-June 2025 HealthPartners, Inc.700-0000-2013 384.44 5/22/2025 Dental Insurance-June 2025 HealthPartners, Inc.101-0000-2012 3,827.79 5/22/2025 Health Insurance-June 2025 HealthPartners, Inc.700-0000-2012 6,001.18 5/22/2025 Health Insurance-June 2025 HealthPartners, Inc.701-0000-2012 4,119.74 5/22/2025 Health Insurance-June 2025 HealthPartners, Inc.101-0000-2013 4,228.48 5/22/2025 Dental Insurance-June 2025 HealthPartners, Inc.101-0000-2013 288.33 5/22/2025 Dental Insurance-June 2025 HealthPartners, Inc.101-0000-2012 70,755.69 5/22/2025 Health Insurance-June 2025 91,335.69 5/22/2025 HealthPartners, Inc. 91,335.69 Heritage Shade Tree Consultants, Inc 101-1425-4300 13,281.25 5/14/2025 forestry consultant hours 13,281.25 5/14/2025 Heritage Shade Tree Consultants, Inc 13,281.25 Holiday Stationstore 700-0000-4381 15.60 3/18/2025 CDL School fuel for truck 301 Holiday Stationstore 700-0000-4381 18.26 3/18/2025 CDL School fuel for truck 301 Holiday Stationstore 701-0000-4381 15.59 3/18/2025 CDL School fuel for truck 301 Holiday Stationstore 701-0000-4381 18.26 3/18/2025 CDL School fuel for truck 301 67.71 3/18/2025 Holiday Stationstore 67.71 AP - Check Detail (5/30/2025)Page 23 of 58 115 Last Name Acct 1 Amount Check Date Description Home Depot 700-7043-4510 232.11 3/18/2025 For WWTP scaffolding boards Home Depot 101-1550-4150 69.06 3/18/2025 Tube sand (restock) 301.17 3/18/2025 Home Depot 701-0000-4260 222.68 4/16/2025 Tools water/sewer Home Depot 101-1550-4260 908.12 4/16/2025 Additions to drill/impact sets Home Depot 700-0000-4150 29.28 4/16/2025 Plywood screw 100pc Home Depot 700-0000-4120 12.96 4/16/2025 Husky 3/8 F to 1/2 M Adapter Home Depot 701-0000-4150 29.28 4/16/2025 Plywood screw 100pc Home Depot 101-1550-4120 124.63 4/16/2025 Replacement chain for garbage cans Home Depot 701-0000-4150 12.95 4/16/2025 Husky 3/8 F to 1/2 M Adapter Home Depot 701-0000-4150 72.56 4/16/2025 Blade 5pk Impact Bit set 1-3/8 Cmm 10pk Home Depot 101-1220-4510 21.21 4/16/2025 furnace filters Home Depot 101-1530-4510 14.06 4/16/2025 lobby tv cable Home Depot 101-1550-4260 1,165.98 4/16/2025 Replacement drill/impact sets Home Depot 700-0000-4150 72.56 4/16/2025 Blade 5pk Impact Bit set 1-3/8 Cmm 10pk Home Depot 700-7043-4120 184.44 4/16/2025 Clear Hook/Leakproff LID/Dust Pan/Toolbar Home Depot 700-0000-4260 222.68 4/16/2025 Tools water/sewer 3,093.39 4/16/2025 Home Depot 3,394.56 Homeland Security and Emergency Management 700-7019-4150 2.15 3/18/2025 EWTP Reporting Homeland Security and Emergency Management 700-7043-4150 2.15 3/18/2025 WWTP Reporting Homeland Security and Emergency Management 700-7019-4150 100.00 3/18/2025 EWTP Reporting Homeland Security and Emergency Management 700-7043-4150 100.00 3/18/2025 WWTP Reporting 204.30 3/18/2025 Homeland Security and Emergency Management 204.30 Hughes Construction 101-1320-4260 427.90 3/18/2025 Tools 427.90 3/18/2025 Hughes Construction 427.90 Hydraulic World 101-1320-4120 310.83 4/16/2025 Parts AP - Check Detail (5/30/2025)Page 24 of 58 116 Last Name Acct 1 Amount Check Date Description 310.83 4/16/2025 Hydraulic World 310.83 Hydro-Klean LLC 701-7013-4751 52,194.58 5/28/2025 2024 Sanitary Sewer I&I Project 24-02 52,194.58 5/28/2025 Hydro-Klean LLC 52,194.58 Hy-Vee 101-1611-4130 58.97 3/18/2025 Feb Fest Donuts For Hole Drillers/Volunteers 58.97 3/18/2025 Hy-Vee 58.97 IAM Trading Limited 101-1310-4360 195.00 4/16/2025 IAM Membership - CH 195.00 4/16/2025 IAM Trading Limited 195.00 Indigo Signs 101-1550-4560 1,620.70 5/29/2025 Dog Ordinance Signs (Replacements) 1,620.70 5/29/2025 Indigo Signs 1,620.70 Indoor Landscapes Inc 101-1170-4300 187.00 5/22/2025 plant service-May 187.00 5/22/2025 Indoor Landscapes Inc 187.00 Infosend, Inc 700-1130-4111 258.59 5/22/2025 April Statement Infosend, Inc 701-1130-4330 881.99 5/22/2025 Postage-April Statement AP - Check Detail (5/30/2025)Page 25 of 58 117 Last Name Acct 1 Amount Check Date Description Infosend, Inc 720-1130-4330 881.99 5/22/2025 Postage-April Statement Infosend, Inc 700-1130-4330 882.00 5/22/2025 Postage-April Statement Infosend, Inc 701-1130-4111 258.59 5/22/2025 April Statement Infosend, Inc 720-1130-4111 258.59 5/22/2025 April Statement 3,421.75 5/22/2025 Infosend, Inc 3,421.75 Inn on Lake Superior 101-1220-4381 443.78 4/16/2025 Frisbe fire officer school hotel Inn on Lake Superior 101-1220-4381 443.78 4/16/2025 Hotel room Geske for Duluth Officer Training 887.56 4/16/2025 Inn on Lake Superior 887.56 Innovative Basement Authority 101-1250-3301 196.00 5/29/2025 Refund - 6240 Ridge Rd - 2025-00129 196.00 5/29/2025 Innovative Basement Authority 196.00 Innovative Office Solutions LLC 101-1120-4110 125.58 5/22/2025 11x17 printer paper Innovative Office Solutions LLC 101-1120-4110 178.74 5/22/2025 General Office Order 304.32 5/22/2025 Innovative Office Solutions LLC 101-1120-4110 62.47 5/29/2025 tape/pens/pads/paper/notebook 62.47 5/29/2025 Innovative Office Solutions LLC 366.79 International Institute Municipal Clerks 101-1120-4360 235.00 3/18/2025 IIMC membership dues 235.00 3/18/2025 International Institute Municipal Clerks 101-1120-4360 135.00 4/16/2025 MMCI membership Amy AP - Check Detail (5/30/2025)Page 26 of 58 118 Last Name Acct 1 Amount Check Date Description 135.00 4/16/2025 International Institute Municipal Clerks 370.00 JSW Embroidery & Tackle Twill 101-1310-4120 180.00 4/16/2025 embroidery for Safety vests for eng dept JSW Embroidery & Tackle Twill 700-0000-4240 26.00 4/16/2025 Jacket embroidery 206.00 4/16/2025 JSW Embroidery & Tackle Twill 206.00 KATH FUEL OIL SERVICE 101-1550-4120 196.67 5/14/2025 antifreeze KATH FUEL OIL SERVICE 101-1320-4120 196.66 5/14/2025 antifreeze KATH FUEL OIL SERVICE 700-0000-4120 196.67 5/14/2025 antifreeze 590.00 5/14/2025 KATH FUEL OIL SERVICE 101-1370-4170 5,037.60 5/29/2025 oil and grease 5,037.60 5/29/2025 KATH FUEL OIL SERVICE 5,627.60 Kegley Luke 101-0000-1027 250.00 5/28/2025 Start up petty cash out at Lake Ann 250.00 5/28/2025 Kegley Luke 250.00 Kelleher Construction, Inc 414-4010-4702 241,157.50 5/14/2025 Pay App #9 Civic Campus 241,157.50 5/14/2025 Kelleher Construction, Inc 241,157.50 KIMLEY HORN AND ASSOCIATES INC 601-6057-4303 3,073.50 5/29/2025 Great Plains Study AP - Check Detail (5/30/2025)Page 27 of 58 119 Last Name Acct 1 Amount Check Date Description 3,073.50 5/29/2025 KIMLEY HORN AND ASSOCIATES INC 3,073.50 Konen Homes 101-0000-2073 500.00 5/22/2025 Erosion escrow 3728 Hickory Rd #623918 500.00 5/22/2025 Konen Homes 500.00 Kowalski's Market 101-1120-4372 23.56 4/16/2025 Eggs for pancake breakfast 23.56 4/16/2025 Kowalski's Market 23.56 Kraus-Anderson Construction Company 414-4010-4702 122,820.88 5/29/2025 Civic Campus 122,820.88 5/29/2025 Kraus-Anderson Construction Company 122,820.88 Kwik Trip 101-1560-4112 12.98 3/18/2025 Donuts - coffee with the cop program Kwik Trip 701-0000-4381 10.04 3/18/2025 fuel for training Kwik Trip 101-1320-4150 54.01 3/18/2025 Fuel for demo bucket truck Kwik Trip 700-0000-4381 10.04 3/18/2025 fuel for training 87.07 3/18/2025 Kwik Trip 701-0000-4170 20.01 4/16/2025 Gas for 310 didn't have gas card Kwik Trip 701-0000-4170 29.02 4/16/2025 Fuel pumps down-gas 314 (on call) Kwik Trip 700-0000-4170 29.02 4/16/2025 Fuel pumps down-gas 314 (on call) Kwik Trip 101-1560-4112 19.47 4/16/2025 Cookies - Carver Co Historical Society Speaker program Kwik Trip 700-0000-4170 20.00 4/16/2025 Gas for 310 didn't have gas card 117.52 4/16/2025 AP - Check Detail (5/30/2025)Page 28 of 58 120 Last Name Acct 1 Amount Check Date Description Kwik Trip 204.59 Lasercrafting 101-1120-4110 13.00 3/18/2025 Council Nameplate for Tyler Stahn 13.00 3/18/2025 Lasercrafting 13.00 Lawson Products, Inc.101-1550-4120 151.19 5/14/2025 bolts/paint Lawson Products, Inc.101-1320-4120 151.18 5/14/2025 bolts/paint Lawson Products, Inc.101-1550-4120 151.19 5/14/2025 bolts/paint 453.56 5/14/2025 Lawson Products, Inc.101-1550-4120 25.86 5/22/2025 bolts 25.86 5/22/2025 Lawson Products, Inc. 479.42 LEAGUE OF MINNESOTA CITIES 101-1110-4370 475.00 5/29/2025 LMC Annual Conference Mayor Ryan 475.00 5/29/2025 LEAGUE OF MINNESOTA CITIES 475.00 Lemon Squeezy LLC 101-1125-4229 82.01 4/16/2025 Workflow plugin for Adobe AfterEffects 82.01 4/16/2025 Lemon Squeezy LLC 82.01 Lightbulbs.com 101-1190-4510 -2.93 4/16/2025 credit from charged tax on invoice Lightbulbs.com 101-1190-4510 269.94 4/16/2025 LED rings bottom of umbrella fixtures Lightbulbs.com 101-1190-4510 70.18 4/16/2025 LED rings bottom of umbrella fixtures Lightbulbs.com 101-1190-4510 39.50 4/16/2025 bulbs children's area Lightbulbs.com 101-1190-4510 56.09 4/16/2025 children's area lighting AP - Check Detail (5/30/2025)Page 29 of 58 121 Last Name Acct 1 Amount Check Date Description 432.78 4/16/2025 Lightbulbs.com 432.78 Loch Monster Plumbing, LLC 101-1312-4510 1,806.65 5/29/2025 gate valve water supply wash bay Loch Monster Plumbing, LLC 101-1312-4510 1,470.40 5/29/2025 rebuild RPZ's wash bay Loch Monster Plumbing, LLC 700-0000-4510 1,863.65 5/29/2025 RPZ replacement well#3 Loch Monster Plumbing, LLC 101-1550-4151 933.20 5/29/2025 irrigation testing 6,073.90 5/29/2025 Loch Monster Plumbing, LLC 6,073.90 Lockridge Grindal Nauen P.L.L.P 101-1110-4312 3,333.33 5/22/2025 Lobbying services 3,333.33 5/22/2025 Lockridge Grindal Nauen P.L.L.P 3,333.33 Lucid Software Inc 101-1250-4210 108.00 3/18/2025 Chart software subscription for permit tree 108.00 3/18/2025 Lucid Software Inc 108.00 Lunds & Byerly's 101-1220-4290 17.32 3/18/2025 Paper Plates 17.32 3/18/2025 Lunds & Byerly's 101-1120-4372 26.55 4/16/2025 eggs/syrup for pancake breakfast 26.55 4/16/2025 Lunds & Byerly's 43.87 Magic Turf, Inc 101-1550-4300 3,850.00 5/22/2025 Bandimere Aeration Magic Turf, Inc 101-1550-4300 750.00 5/22/2025 Bandimere Aeration AP - Check Detail (5/30/2025)Page 30 of 58 122 Last Name Acct 1 Amount Check Date Description 4,600.00 5/22/2025 Magic Turf, Inc 4,600.00 Mansfield Oil Company 101-1370-4170 9,658.31 5/29/2025 fuel Mansfield Oil Company 101-1370-4170 9,454.51 5/29/2025 fuel 19,112.82 5/29/2025 Mansfield Oil Company 19,112.82 Marco Inc 101-1160-4411 835.00 5/21/2025 copier lease 835.00 5/21/2025 Marco Inc 835.00 Menards 101-1320-4530 227.40 3/18/2025 Heater for Brine building Menards 700-7043-4120 13.03 3/18/2025 Rental Equipt for WWTP work Menards 700-7043-4120 -7.71 3/18/2025 Returned Rental Equipt for WWTP work Menards 700-0000-4260 189.32 3/18/2025 Scaffolding Menards 701-0000-4260 189.33 3/18/2025 Scaffolding Menards 101-1312-4260 189.32 3/18/2025 Scaffolding Menards 101-1170-4260 189.32 3/18/2025 Scaffolding 990.01 3/18/2025 Menards 700-7043-4150 64.29 4/16/2025 Tape/Hex Nipple/Adapter/Brass Bus/Riser/PVC Menards 700-0000-4550 69.84 4/16/2025 Parts for hydrant repair Menards 700-7043-4150 72.45 4/16/2025 200W 3K LED Calc Lime Rust 128 oz Menards 700-7043-4150 3.02 4/16/2025 WWTP Female Insert Adapter 209.60 4/16/2025 Menards 1,199.61 Merlins Ace Hardware 101-1220-4372 25.77 4/16/2025 Hotel training supplies AP - Check Detail (5/30/2025)Page 31 of 58 123 Last Name Acct 1 Amount Check Date Description 25.77 4/16/2025 MERLINS ACE HARDWARE 101-1320-4120 51.82 5/22/2025 Blk/Slv Adhv letters MERLINS ACE HARDWARE 101-1320-4240 88.99 5/22/2025 Forestry Helmet System MERLINS ACE HARDWARE 700-7043-4120 2.76 5/22/2025 Fasteners MERLINS ACE HARDWARE 700-0000-4150 33.97 5/22/2025 Flip Disc 40G Spraypaint MERLINS ACE HARDWARE 700-7043-4150 99.49 5/22/2025 Pex A Pro 1/2X5 Bushing Couple PVC MERLINS ACE HARDWARE 700-0000-4240 73.49 5/22/2025 Layer Wrap Chaps Waist Extender MERLINS ACE HARDWARE 701-0000-4150 8.59 5/22/2025 Tape Mounting Clear MERLINS ACE HARDWARE 101-1550-4120 225.77 5/22/2025 Green treated decking Insect Killer Electrical Tape MERLINS ACE HARDWARE 101-1320-4150 7.98 5/22/2025 Mlw T30 Bit 2"" MERLINS ACE HARDWARE 701-0000-4240 73.49 5/22/2025 6 Layer Wrap CHps 40"" Waist Extender MERLINS ACE HARDWARE 101-1550-4151 21.57 5/22/2025 Cap PVC J Bed MERLINS ACE HARDWARE 701-0000-4140 12.49 5/22/2025 Flex Hose MERLINS ACE HARDWARE 700-0000-4140 12.50 5/22/2025 Flex Hose 712.91 5/22/2025 MERLINS ACE HARDWARE 738.68 Metro Garage Door Company 101-1312-4510 125.00 5/22/2025 overhead door springs delivery 125.00 5/22/2025 Metro Garage Door Company 125.00 METROPOLITAN COUNCIL 701-0000-4509 241,707.34 5/22/2025 wastewater services-June 2025 241,707.34 5/22/2025 METROPOLITAN COUNCIL 241,707.34 Metropolitan Council Enviromental Services 701-0000-4509 20,000.00 3/18/2025 MCES WW Service March 2025 20,000.00 3/18/2025 Metropolitan Council Enviromental Services 701-0000-4509 20,000.00 4/16/2025 MCES - April 2025 WW Service AP - Check Detail (5/30/2025)Page 32 of 58 124 Last Name Acct 1 Amount Check Date Description 20,000.00 4/16/2025 Metropolitan Council Enviromental Services 40,000.00 Metropolitan Council, Env Svcs 101-1250-3816 678,405.00 5/14/2025 April 2025 SAC Metropolitan Council, Env Svcs 701-0000-2023 -6,784.05 5/14/2025 April 2025 SAC 671,620.95 5/14/2025 Metropolitan Council, Env Svcs 671,620.95 Michaels 101-1560-4130 44.51 3/18/2025 Colored Pencil Sketching - for Beginners 44.51 3/18/2025 Michaels 44.51 Microsoft 101-1160-4211 192.00 3/18/2025 Exchange Online Plan 1 (4) Renewal 192.00 3/18/2025 Microsoft 192.00 Minnesota Nursery and Landscape 101-1550-4370 470.00 3/18/2025 Tree Inspector Training: Rob H and Pete S Minnesota Nursery and Landscape 101-1420-4370 235.00 3/18/2025 Shade Tree Short Course Conference 705.00 3/18/2025 Minnesota Nursery and Landscape 705.00 Minnesota Pump Works 700-7043-4550 9,062.60 5/29/2025 multi stage booster pumps 9,062.60 5/29/2025 Minnesota Pump Works 9,062.60 AP - Check Detail (5/30/2025)Page 33 of 58 125 Last Name Acct 1 Amount Check Date Description Minnesota Rural Water Association 701-0000-4370 350.00 3/18/2025 Sewer conference 350.00 3/18/2025 Minnesota Rural Water Association 350.00 Minnesota State Colleges and Universities 101-1120-4370 395.00 3/18/2025 Amy _MCFOA Training Minnesota State Colleges and Universities 101-1120-4370 395.00 3/18/2025 MCFOA Conference 790.00 3/18/2025 Minnesota State Colleges and Universities 790.00 Minnetonka Glass 700-0000-4510 506.59 3/18/2025 glass replacement well#7 506.59 3/18/2025 Minnetonka Glass 700-0000-4510 506.58 4/16/2025 glass replacement well#7 506.58 4/16/2025 Minnetonka Glass 1,013.17 Minuteman Press 101-1120-4110 280.00 5/14/2025 Business Cards for Parks Staff 280.00 5/14/2025 Minuteman Press 280.00 MN American Water Works Association 700-0000-4370 320.00 4/16/2025 Water conference 320.00 4/16/2025 MN American Water Works Association 320.00 MN Department of Transportation 101-1420-4370 -40.00 3/18/2025 MN Dot Training - Refunded AP - Check Detail (5/30/2025)Page 34 of 58 126 Last Name Acct 1 Amount Check Date Description -40.00 3/18/2025 MN Department of Transportation -40.00 MN Dept of Labor and Industry 701-0000-4370 9.50 3/18/2025 Water/sewer cert MN Dept of Labor and Industry 700-0000-4370 9.50 3/18/2025 Water/sewer cert 19.00 3/18/2025 MN DEPT OF LABOR AND INDUSTRY 101-1250-3818 -178.57 5/14/2025 April 2025 Surcharge MN DEPT OF LABOR AND INDUSTRY 101-0000-2022 8,928.44 5/14/2025 April 2025 Surcharge 8,749.87 5/14/2025 MN DEPT OF LABOR AND INDUSTRY 8,768.87 MN FIRE SERVICE CERTIFICATION BOARD 101-1220-4370 158.50 5/22/2025 FAO Certification-Frisbie MN FIRE SERVICE CERTIFICATION BOARD 101-1220-4370 142.00 5/22/2025 Instructor II Certification-Geske 300.50 5/22/2025 MN FIRE SERVICE CERTIFICATION BOARD 300.50 MN Government Finance Officers Association 101-1130-4360 70.00 3/18/2025 MNGFOA Membership D Washburn MN Government Finance Officers Association 101-1130-4360 70.00 3/18/2025 MNGFOA Membership K Hiivala MN Government Finance Officers Association 101-1130-4360 70.00 3/18/2025 MNGFOA Membership A McGovern MN Government Finance Officers Association 101-1130-4360 70.00 3/18/2025 MNGFOA Dues - K Grinnell MN Government Finance Officers Association 101-1130-4360 70.00 3/18/2025 MNGFOA Membership T Lenz 350.00 3/18/2025 MN Government Finance Officers Association 350.00 MN Pollution Control Agency 701-0000-4370 0.49 3/18/2025 Sewer Training MN Pollution Control Agency 701-0000-4370 23.00 3/18/2025 Sewer training 23.49 3/18/2025 AP - Check Detail (5/30/2025)Page 35 of 58 127 Last Name Acct 1 Amount Check Date Description MN Pollution Control Agency 701-0000-4370 55.00 4/16/2025 Sewer training MN Pollution Control Agency 701-0000-4370 1.18 4/16/2025 Sewer training 56.18 4/16/2025 MN Pollution Control Agency 720-0000-4300 400.00 5/14/2025 MS4 Permit Application 400.00 5/14/2025 MN Pollution Control Agency 479.67 MN Recreation and Park Association 101-1550-4370 1,490.00 3/18/2025 CPSI Training: Rob H and Nick J MN Recreation and Park Association 101-1560-4370 45.00 3/18/2025 MRPA Leadership Workshop St Louis Park MN Recreation and Park Association 101-1550-4370 1,490.00 3/18/2025 CPSI Training; Jason K and Nick K 3,025.00 3/18/2025 MN Recreation and Park Association 101-1800-4375 175.00 4/16/2025 Rec Center Sports Coordinator listing MN Recreation and Park Association 101-1560-4370 169.00 4/16/2025 MASS/MMPR Annual conference April2025 344.00 4/16/2025 MN Recreation and Park Association 3,369.00 MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Pipelayers training MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Water/sewer training MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Water/sewer training MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Water/sewer Assoc MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Pipelayer Cert MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Water/sewer training MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Pipelayers training MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Water/sewer training MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Pipelayer Cert MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Pipelayer cert MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Water/sewer Assoc MN Utility Contractors Association 700-0000-4370 150.00 3/18/2025 Water/sewer training MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Water/sewer training MN Utility Contractors Association 701-0000-4370 150.00 3/18/2025 Pipelayer cert 2,100.00 3/18/2025 AP - Check Detail (5/30/2025)Page 36 of 58 128 Last Name Acct 1 Amount Check Date Description MN Utility Contractors Association 2,100.00 MN VALLEY ELECTRIC COOP 101-1350-4320 273.82 5/14/2025 Electric Charges 273.82 5/14/2025 MN VALLEY ELECTRIC COOP 101-1350-4320 129.84 5/28/2025 Electric Charges MN VALLEY ELECTRIC COOP 101-1350-4320 131.53 5/28/2025 Electric Charges MN VALLEY ELECTRIC COOP 101-1350-4320 43.71 5/28/2025 Electric Charges 305.08 5/28/2025 MN VALLEY ELECTRIC COOP 578.90 MOSS & BARNETT 210-0000-4300 7,925.50 5/22/2025 Mediacom renewal 7,925.50 5/22/2025 MOSS & BARNETT 7,925.50 MOTOROLA Solutions, Inc 400-0000-4705 2,221.20 5/14/2025 Radio encryption upgrades 2,221.20 5/14/2025 MOTOROLA Solutions, Inc 2,221.20 MTI DISTRIBUTING INC 101-1550-4120 883.00 5/22/2025 fan motor 883.00 5/22/2025 MTI DISTRIBUTING INC 883.00 Municipal Clerk and Finance Officers 101-1120-4360 50.00 3/18/2025 Amy W MCFOA Membership 50.00 3/18/2025 AP - Check Detail (5/30/2025)Page 37 of 58 129 Last Name Acct 1 Amount Check Date Description Municipal Clerk and Finance Officers 50.00 Munivate LLC 101-1250-4300 508.75 3/18/2025 Software implementation consultation 508.75 3/18/2025 Munivate LLC 101-1250-4300 138.75 4/16/2025 Eplansoft/BSA implementation configuration 138.75 4/16/2025 Munivate LLC 647.50 NAPA AUTO & TRUCK PARTS 101-1370-4140 4.68 5/29/2025 ac. part NAPA AUTO & TRUCK PARTS 101-1370-4170 10.47 5/29/2025 pressure washer oil 15.15 5/29/2025 NAPA AUTO & TRUCK PARTS 15.15 Na's Thai Cafe 101-1123-4381 13.87 4/16/2025 Lunch with Harry Ollington - Rokos Advisors 13.87 4/16/2025 Na's Thai Cafe 13.87 National Fire Sprinkler Association 101-1220-4360 50.00 3/18/2025 NFSA Membership 50.00 3/18/2025 National Fire Sprinkler Association 50.00 National Registry Of EMT 101-1220-4370 25.00 3/18/2025 EMT Renewal 25.00 3/18/2025 National Registry Of EMT 101-1220-4370 25.00 4/16/2025 EMT Renewal National Registry Of EMT 101-1220-4370 75.00 4/16/2025 EMT vouchers for EMT renewal for Department 2025 National Registry Of EMT 101-1220-4370 25.00 4/16/2025 EMT voucher Warden 2025 renewal AP - Check Detail (5/30/2025)Page 38 of 58 130 Last Name Acct 1 Amount Check Date Description 125.00 4/16/2025 National Registry Of EMT 150.00 Newport Janine 101-1425-3640 30.00 5/22/2025 Community Garden Refund 30.00 5/22/2025 Newport Janine 30.00 Noodles & Company 101-1110-4372 233.93 4/16/2025 City Council Dinner 233.93 4/16/2025 Noodles & Company 233.93 North American Safety, Inc.101-1320-4240 35.85 5/29/2025 earplugs 35.85 5/29/2025 North American Safety, Inc. 35.85 NORTH COOP 101-1420-4381 28.00 3/18/2025 Meeting with developer 28.00 3/18/2025 NORTH COOP 28.00 Northern Tool+Equipment 700-0000-4260 37.98 3/18/2025 For Tower #2 - replaced broken one Northern Tool+Equipment 701-0000-4260 37.98 3/18/2025 For Tower #2 - replaced broken one 75.96 3/18/2025 Northern Tool+Equipment 700-0000-4120 48.83 4/16/2025 Replaced in truck 303 750W Inverter Northern Tool+Equipment 701-0000-4120 48.83 4/16/2025 Replaced in truck 303 750W Inverter AP - Check Detail (5/30/2025)Page 39 of 58 131 Last Name Acct 1 Amount Check Date Description 97.66 4/16/2025 Northern Tool+Equipment 173.62 NOVEL SOLAR THREE, LLC 700-0000-4320 6,761.95 5/14/2025 Electric Charges NOVEL SOLAR THREE, LLC 101-1350-4320 141.39 5/14/2025 Electric Charges NOVEL SOLAR THREE, LLC 701-0000-4320 3,719.00 5/14/2025 Electric Charges 10,622.34 5/14/2025 NOVEL SOLAR THREE, LLC 10,622.34 NvoicePay 101-1130-4300 742.10 5/22/2025 Payment processing-April 2025 742.10 5/22/2025 NvoicePay 742.10 NYSTROM PUBLISHING COMPANY INC 101-1120-4330 2,456.01 5/14/2025 Postage Recycling Card NYSTROM PUBLISHING COMPANY INC 101-1425-4300 1,661.20 5/14/2025 Recycling cards NYSTROM PUBLISHING COMPANY INC 101-1125-4335 4,512.24 5/14/2025 Connection 8,629.45 5/14/2025 NYSTROM PUBLISHING COMPANY INC 8,629.45 Octane Conference 101-1130-4370 160.00 4/16/2025 Octane Conference - K Grinnell 160.00 4/16/2025 Octane Conference 160.00 Office Max/Office Depot 700-0000-4310 8.13 3/18/2025 Charging cable for truck Office Max/Office Depot 101-1120-4372 37.97 3/18/2025 Giant post-its Office Max/Office Depot 701-0000-4310 8.12 3/18/2025 Charging cable for truck AP - Check Detail (5/30/2025)Page 40 of 58 132 Last Name Acct 1 Amount Check Date Description 54.22 3/18/2025 Office Max/Office Depot 54.22 OPG-3, Inc 101-1160-4353 38,988.08 5/14/2025 Laserfiche Annual Municpality License Renewal 38,988.08 5/14/2025 OPG-3, Inc 38,988.08 O'Reilly Auto Parts 101-1320-4120 39.99 4/16/2025 Hitch lock for reader board O'Reilly Auto Parts 101-1320-4120 39.99 4/16/2025 Hitch lock for reader board 79.98 4/16/2025 O'Reilly Auto Parts 79.98 PACE ANALYTICAL SERVICES INC 700-0000-4300 351.00 5/14/2025 water testing 351.00 5/14/2025 PACE ANALYTICAL SERVICES INC 351.00 Panera Bread 101-1220-4381 271.79 3/18/2025 Brunch for Fire Dept 271.79 3/18/2025 Panera Bread 271.79 Party City 101-1701-4130 106.63 3/18/2025 Table Cloths/Gloves/Decorations - Sweetheart Dance Party City 101-1701-4130 87.00 3/18/2025 Balloons - Sweetheart Dance Party City 101-1560-4130 142.88 3/18/2025 Colored Decorations and Party supplies Party City 101-1701-4130 9.21 3/18/2025 Table Cloths - Sweetheart Dance 345.72 3/18/2025 AP - Check Detail (5/30/2025)Page 41 of 58 133 Last Name Acct 1 Amount Check Date Description Party City 345.72 Pearson Florist 101-1120-4300 80.78 3/18/2025 Flowers-Michael Brindisi and Chan Dinner Theatre 80.78 3/18/2025 Pearson Florist 80.78 Pinnacle Pest Control 101-1170-4510 250.00 5/22/2025 pest control Pinnacle Pest Control 101-1312-4510 250.00 5/22/2025 pest control Pinnacle Pest Control 101-1220-4510 200.00 5/22/2025 pest control Pinnacle Pest Control 700-7019-4510 125.00 5/22/2025 pest control Pinnacle Pest Control 101-1190-4510 225.00 5/22/2025 pest control Pinnacle Pest Control 700-7043-4510 125.00 5/22/2025 pest control 1,175.00 5/22/2025 Pinnacle Pest Control 1,175.00 Pioneer Athletics 101-1550-4150 3,240.00 5/14/2025 Athletic field striping paint (restock) 3,240.00 5/14/2025 Pioneer Athletics 3,240.00 Pitney Bowes Inc.101-1120-4410 180.72 5/29/2025 meter rental 2/8/25-5/7/25 180.72 5/29/2025 Pitney Bowes Inc. 180.72 Pomplun Jacob 101-0000-2073 500.00 5/22/2025 Erosion escrow 2630 Forest Ave #636640 500.00 5/22/2025 Pomplun Jacob 500.00 AP - Check Detail (5/30/2025)Page 42 of 58 134 Last Name Acct 1 Amount Check Date Description Postmaster 101-1120-4110 6.10 3/18/2025 Package for Laurie Postmaster 101-1220-4290 9.39 3/18/2025 Postage to Return Neck Strap for LUCAS Postmaster 101-1220-4290 29.20 3/18/2025 Stamps Postmaster 700-0000-4330 6.00 3/18/2025 Fluoride Sample MDH postage 50.69 3/18/2025 Postmaster 101-1120-4330 1.78 4/16/2025 Postage Postmaster 101-1120-4330 9.22 4/16/2025 Postage 11.00 4/16/2025 Postmaster 61.69 Potbelly Sandwich Shop 101-1110-4372 158.90 4/16/2025 City Council Dinner 158.90 4/16/2025 Potbelly Sandwich Shop 158.90 Potentia MN Solar 700-0000-4320 1,793.15 5/28/2025 Electric Charges Potentia MN Solar 101-1190-4320 3,556.09 5/28/2025 Electric Charges Potentia MN Solar 101-1170-4320 2,810.60 5/28/2025 Electric Charges 8,159.84 5/28/2025 Potentia MN Solar 8,159.84 Precision Utilities 701-0000-4554 22,203.75 5/14/2025 lift station 28 rebuild 3 gate valves 22,203.75 5/14/2025 Precision Utilities 22,203.75 Premium Waters, Inc 101-1550-4120 4.32 5/22/2025 Lake Ann Water 4.32 5/22/2025 AP - Check Detail (5/30/2025)Page 43 of 58 135 Last Name Acct 1 Amount Check Date Description Premium Waters, Inc 4.32 Princess Party Pals 101-1537-4345 100.00 3/18/2025 Royal Ball Princess additional time 100.00 3/18/2025 Princess Party Pals 100.00 Quality Inn & Suites 701-0000-4381 41.57 3/18/2025 Hotel for CDL school Quality Inn & Suites 700-0000-4381 41.58 3/18/2025 Hotel for CDL school Quality Inn & Suites 701-0000-4381 93.82 3/18/2025 Hotel for CDL School Quality Inn & Suites 700-0000-4381 93.82 3/18/2025 Hotel for CDL School 270.79 3/18/2025 Quality Inn & Suites 701-0000-4381 46.19 4/16/2025 Hotel for CDL School Quality Inn & Suites 700-0000-4381 -41.58 4/16/2025 Refund - Hotel for CDL School Quality Inn & Suites 701-0000-4381 -41.57 4/16/2025 Refund - Hotel for CDL School Quality Inn & Suites 700-0000-4381 46.19 4/16/2025 Hotel for CDL School 9.23 4/16/2025 Quality Inn & Suites 280.02 Rain for Rent 701-0000-4405 2,986.12 5/29/2025 FOG disposal rolloff container for lift station c 2,986.12 5/29/2025 Rain for Rent 2,986.12 RAINBOW TREE COMPANY 101-1425-4574 1,132.50 5/14/2025 apple tree treatment for apple scab 1,132.50 5/14/2025 RAINBOW TREE COMPANY 1,132.50 Rent N Save Portable Services 101-1550-4400 1,066.00 5/22/2025 portable restrooms AP - Check Detail (5/30/2025)Page 44 of 58 136 Last Name Acct 1 Amount Check Date Description 1,066.00 5/22/2025 Rent N Save Portable Services 1,066.00 Riley Purgatory Bluff Creek Watershed District 720-0000-4130 3,000.00 5/22/2025 Program Supplies 3,000.00 5/22/2025 Riley Purgatory Bluff Creek Watershed District 3,000.00 RocketLaw 101-1220-4360 59.97 3/18/2025 Nutter membership dues 59.97 3/18/2025 RocketLaw 101-1220-4360 59.97 4/16/2025 Membership dues Nutter documents created for training 59.97 4/16/2025 RocketLaw 119.94 SABRE HEATING & AIR COND.101-1250-3306 30.00 5/14/2025 Permit Refund - 2025-00944 - 9447 Eagle Ridge Way 30.00 5/14/2025 SABRE HEATING & AIR COND. 30.00 Safeguard by Solv 101-1130-4120 206.66 3/18/2025 2024 YE Tax Forms 206.66 3/18/2025 Safeguard by Solv 206.66 Sam's Club 101-1537-4130 116.80 3/18/2025 Snacks Jodi Dance Open House 116.80 3/18/2025 Sam's Club 101-1560-4112 197.24 4/16/2025 St Pats Party food/paper products AP - Check Detail (5/30/2025)Page 45 of 58 137 Last Name Acct 1 Amount Check Date Description 197.24 4/16/2025 Sam's Club 314.04 SCOTT COUNTY TREASURER 101-1220-4370 1,687.50 5/14/2025 Burn Tower rental for Training 1,687.50 5/14/2025 SCOTT COUNTY TREASURER 101-1110-4360 2,100.00 5/29/2025 Southwest Metro Drug Task Force-2025 dues 2,100.00 5/29/2025 SCOTT COUNTY TREASURER 3,787.50 SEH 410-4410-4751 31,413.76 5/29/2025 Lake Ann Park Preserve 31,413.76 5/29/2025 SEH 31,413.76 Sewing Tech Uniform Co 701-0000-4240 198.87 3/18/2025 Jacket Sewing Tech Uniform Co 700-0000-4240 198.87 3/18/2025 Jacket 397.74 3/18/2025 Sewing Tech Uniform Co 397.74 Shoplet 101-1530-4150 207.04 3/18/2025 Towels for Fitness - 2 rolls 207.04 3/18/2025 Shoplet 207.04 Shred-N-Go Inc 101-1425-4300 1,575.00 5/22/2025 shredding event 1,575.00 5/22/2025 AP - Check Detail (5/30/2025)Page 46 of 58 138 Last Name Acct 1 Amount Check Date Description Shred-N-Go Inc 1,575.00 Sidekick Theatre 101-1560-4342 2,295.00 3/18/2025 Trip tickets - Ives Theater - Sidekick 2,295.00 3/18/2025 Sidekick Theatre 2,295.00 Silva Screenprinting & Dist, LLC 101-1616-4240 1,731.54 5/29/2025 uniform Silva Screenprinting & Dist, LLC 101-1800-4240 152.00 5/29/2025 Rec Sports Uniforms Silva Screenprinting & Dist, LLC 101-1530-4240 465.00 5/29/2025 Rec Center Uniforms Silva Screenprinting & Dist, LLC 101-1540-4240 249.00 5/29/2025 uniform 2,597.54 5/29/2025 Silva Screenprinting & Dist, LLC 2,597.54 SM HENTGES & SONS 700-6040-4751 56,609.29 5/22/2025 Galpin Blvd-100% City Watermain SM HENTGES & SONS 701-6040-4751 -4,972.30 5/22/2025 Galpin Blvd-100% City Sanitary SM HENTGES & SONS 601-6040-4751 31,837.07 5/22/2025 Galpin Blvd-25% City Roadway & Storm SM HENTGES & SONS 601-6140-4751 95,511.23 5/22/2025 Galpin Blvd-75% County Roadway & Storm 178,985.29 5/22/2025 SM HENTGES & SONS 178,985.29 Smartpress.com 101-1125-4260 76.04 3/18/2025 "Community For Life" banner for outreach booths 76.04 3/18/2025 Smartpress.com 101-1310-4331 86.45 4/16/2025 Door hanger notifications for Engineering Smartpress.com 101-1120-4110 208.11 4/16/2025 New letterhead for official postcards 294.56 4/16/2025 Smartpress.com 370.60 SOUTHWEST LOCK & KEY 101-1190-4510 650.25 5/22/2025 Change cylinders 6 doors AP - Check Detail (5/30/2025)Page 47 of 58 139 Last Name Acct 1 Amount Check Date Description 650.25 5/22/2025 SOUTHWEST LOCK & KEY 650.25 Southwest Metro Chamber of Commerce 101-1123-4381 40.00 4/16/2025 Chamber Legislative Luncheon Southwest Metro Chamber of Commerce 101-1120-4370 480.00 4/16/2025 First Responders Luncheon (City Manager + Council) 520.00 4/16/2025 Southwest Metro Chamber of Commerce 520.00 SRF CONSULTING GROUP INC 601-6058-4303 7,456.61 5/22/2025 TH41-MMSW Roundabout 7,456.61 5/22/2025 SRF CONSULTING GROUP INC 7,456.61 St Cloud Parking 701-0000-4381 20.00 4/16/2025 Parking for sewer school 20.00 4/16/2025 St Cloud Parking 20.00 Stampli 101-1130-4300 1,362.00 3/18/2025 Stampli - AP Processing Jan 2025 1,362.00 3/18/2025 Stampli 101-1130-4300 1,362.00 4/16/2025 Stampli- AP Processing Feb 2025 1,362.00 4/16/2025 Stampli 2,724.00 Star Tribune 101-1120-4360 24.00 3/18/2025 Strib monthly access 24.00 3/18/2025 AP - Check Detail (5/30/2025)Page 48 of 58 140 Last Name Acct 1 Amount Check Date Description Star Tribune 101-1120-4360 24.00 4/16/2025 strib monthly access 24.00 4/16/2025 Star Tribune 48.00 Stericycle, Inc 101-1120-4300 296.33 5/29/2025 Shredding bin swap 296.33 5/29/2025 Stericycle, Inc 296.33 Stratoguard, LLC 101-1160-4205 2,302.45 3/18/2025 Ivanti Security Controls Patch Mgmt Renewal Stratoguard, LLC 101-1160-4205 230.56 3/18/2025 ProofPoint Email Filtering Service - Jan 2,533.01 3/18/2025 Stratoguard, LLC 101-1160-4205 230.56 4/16/2025 ProofPoint Email Filter Service - Mar 230.56 4/16/2025 Stratoguard, LLC 2,763.57 SUBWAY 101-1807-4130 7.35 4/16/2025 Kids Night Dairy Free Dinner 7.35 4/16/2025 SUBWAY 7.35 Sun Country 101-1125-4381 288.58 4/16/2025 Airfare to GSMCON 2025 in Orlando 288.58 4/16/2025 Sun Country 288.58 Survey Monkey 101-1120-4351 192.00 4/16/2025 Survey Monkey subscription AP - Check Detail (5/30/2025)Page 49 of 58 141 Last Name Acct 1 Amount Check Date Description 192.00 4/16/2025 Survey Monkey 192.00 Target 101-1611-4130 9.75 3/18/2025 Snow dye for FebFest (will return) Target 101-1530-4130 9.94 3/18/2025 Lemonade Target 101-1220-4290 97.84 3/18/2025 Personal Charge on credit card - #667565 Target 101-1611-4130 -8.13 3/18/2025 FebFest supply return Target 101-1611-4130 29.36 3/18/2025 FebFest prize weights Target 101-1220-4290 20.89 3/18/2025 Personal Charge on credit card - #667565 Target 101-1701-4112 79.32 3/18/2025 Oreos and Candy - Sweetheart Dance Target 101-1611-4130 19.67 3/18/2025 FebFest Medallion Hunt basket supplies 258.64 3/18/2025 Target 101-1539-4130 18.97 4/16/2025 Salad dressing and lemonade for puzzlepalooza Target 101-1807-4130 11.99 4/16/2025 Applesauce for Kids Night Target 101-1220-4372 42.32 4/16/2025 Supplies for training night at hotel 73.28 4/16/2025 Target 331.92 Taylor Electric Company, LLC 101-1350-4565 185.00 5/22/2025 street light repair Taylor Electric Company, LLC 101-1350-4566 1,276.50 5/22/2025 repair loop detector Taylor Electric Company, LLC 101-1350-4565 1,276.50 5/22/2025 street light repair Taylor Electric Company, LLC 700-7019-4550 3,922.00 5/22/2025 installing heat tape in bulk water fill station 6,660.00 5/22/2025 Taylor Electric Company, LLC 6,660.00 Taza Fresh Mediterranean 101-1110-4372 263.64 3/18/2025 City Council Meal 263.64 3/18/2025 Taza Fresh Mediterranean 263.64 AP - Check Detail (5/30/2025)Page 50 of 58 142 Last Name Acct 1 Amount Check Date Description TechSmith 101-1160-4219 11.88 3/18/2025 SnagIt screen capture software 11.88 3/18/2025 TechSmith 11.88 The Media Factory, Inc 701-0000-4370 22.00 3/18/2025 class The Media Factory, Inc 700-0000-4370 22.00 3/18/2025 class 44.00 3/18/2025 The Media Factory, Inc 44.00 The O.G. Coffee & Wine Bar 101-1123-4381 16.11 3/18/2025 RJ & Sam Coffee with Driven Coffee 16.11 3/18/2025 The O.G. Coffee & Wine Bar 101-1123-4381 14.67 4/16/2025 RJ & Sam Coffee with Zac Engler - Bodhi AI The O.G. Coffee & Wine Bar 101-1600-4130 8.57 4/16/2025 Coffee at sponsor meeting The O.G. Coffee & Wine Bar 101-1123-4381 16.53 4/16/2025 Coffee with Nick Gardino (New EDC Member) and RJ 39.77 4/16/2025 The O.G. Coffee & Wine Bar 55.88 TimeSaver Off Site Secretarial, Inc 101-1125-4300 172.00 5/22/2025 Park and Recreation Minutes 4/22/25 TimeSaver Off Site Secretarial, Inc 101-1125-4300 172.00 5/22/2025 Minutes for PC 4/15/25 TimeSaver Off Site Secretarial, Inc 101-1125-4300 300.00 5/22/2025 Minutes for City Council Meeting TimeSaver Off Site Secretarial, Inc 101-1125-4300 172.00 5/22/2025 City Council minutes 4/14/25 TimeSaver Off Site Secretarial, Inc 101-1125-4300 182.00 5/22/2025 Minutes for Planning Commission 998.00 5/22/2025 TimeSaver Off Site Secretarial, Inc 998.00 TJ Office Furniture 414-4010-4702 8,500.00 3/18/2025 used office furniture for new City Hall deposit 8,500.00 3/18/2025 AP - Check Detail (5/30/2025)Page 51 of 58 143 Last Name Acct 1 Amount Check Date Description TJ Office Furniture 8,500.00 Tonka TD Club 101-1220-4510 210.00 3/18/2025 softener salt 210.00 3/18/2025 Tonka TD Club 210.00 Travel Guard Group Inc 101-1125-4381 18.04 4/16/2025 Travel insurance for GSM CON flight to Orlando 18.04 4/16/2025 Travel Guard Group Inc 18.04 TruGreen Processing Center 101-1550-4300 1,759.00 5/22/2025 broadleaf weed control 1,759.00 5/22/2025 TruGreen Processing Center 1,759.00 U of M Contlearning 101-1250-4370 320.00 3/18/2025 Continuing ed course-Soils-Tessman 320.00 3/18/2025 U of M Contlearning 101-1320-4370 35.00 4/16/2025 Work zone safety training 35.00 4/16/2025 U of M Contlearning 355.00 Uber 101-1220-4381 30.96 3/18/2025 Personal charge-Receipt 660628 30.96 3/18/2025 Uber 30.96 United States Plastics Corporation 700-7019-4150 29.88 4/16/2025 EWTP 1/2 PVC Spring Check Vlv AP - Check Detail (5/30/2025)Page 52 of 58 144 Last Name Acct 1 Amount Check Date Description United States Plastics Corporation 700-7019-4150 41.25 4/16/2025 EWTP 1/2 PVC Spring Check Vlv 71.13 4/16/2025 United States Plastics Corporation 71.13 US Bank Rebate 101-1130-3903 -3,919.47 4/16/2025 US Bank Rebate -3,919.47 4/16/2025 US Bank Rebate -3,919.47 USA BLUE BOOK 700-7043-4160 275.70 5/14/2025 chemicals USA BLUE BOOK 700-7043-4160 1,998.80 5/14/2025 chemicals USA BLUE BOOK 701-0000-4551 176.73 5/14/2025 lift station 24 float switch 2,451.23 5/14/2025 USA BLUE BOOK 700-7019-4160 64.32 5/22/2025 chemicals 64.32 5/22/2025 USA BLUE BOOK 2,515.55 Utility Solutions Expo 700-0000-4370 250.00 4/16/2025 Schooling Utility Solutions Expo 700-1130-4370 125.00 4/16/2025 Utility Solutions Conference T Lenz Utility Solutions Expo 701-1130-4370 125.00 4/16/2025 Utility Solutions Conference T Lenz Utility Solutions Expo 700-0000-4370 250.00 4/16/2025 Water meter school 750.00 4/16/2025 Utility Solutions Expo 750.00 VALLEY-RICH CO INC 700-0000-4552 3,154.00 5/14/2025 curb stop repair 3,154.00 5/14/2025 AP - Check Detail (5/30/2025)Page 53 of 58 145 Last Name Acct 1 Amount Check Date Description VALLEY-RICH CO INC 3,154.00 VERIZON WIRELESS 700-0000-4310 95.10 5/28/2025 Telephone & Communication Charges VERIZON WIRELESS 701-0000-4310 95.10 5/28/2025 Telephone & Communication Charges 190.20 5/28/2025 VERIZON WIRELESS 190.20 Walgreens 101-1220-4152 3.24 4/16/2025 Firefighter Photo for Wall 3.24 4/16/2025 Walgreens 3.24 Wal-Mart 101-1560-4130 14.97 3/18/2025 Colored Pencil Art Class pencils/supplies 14.97 3/18/2025 Wal-Mart 101-1539-4130 145.07 4/16/2025 March Puzzle Palooza Prize packages 145.07 4/16/2025 Wal-Mart 160.04 Waste Management of Minnesota, Inc 101-1220-4329 117.58 5/14/2025 Garbage service - May Waste Management of Minnesota, Inc 700-0000-4329 18.81 5/14/2025 Garbage Service-May Waste Management of Minnesota, Inc 101-1170-4329 243.78 5/14/2025 Garbage service - May Waste Management of Minnesota, Inc 701-0000-4329 18.81 5/14/2025 Garbage Service-May Waste Management of Minnesota, Inc 101-1190-4329 360.59 5/14/2025 Garbage service - May Waste Management of Minnesota, Inc 101-1550-4329 677.40 5/14/2025 Garbage Service-May Waste Management of Minnesota, Inc 101-1312-4329 150.53 5/14/2025 Garbage Service-May 1,587.50 5/14/2025 Waste Management of Minnesota, Inc 701-0000-4405 479.55 5/29/2025 FOG Disposal 479.55 5/29/2025 AP - Check Detail (5/30/2025)Page 54 of 58 146 Last Name Acct 1 Amount Check Date Description Waste Management of Minnesota, Inc 2,067.05 Water Conservation Services, Inc.700-0000-4300 403.60 5/22/2025 leak detection for water main break 403.60 5/22/2025 Water Conservation Services, Inc. 403.60 Water Environment Federation 700-0000-4360 94.50 3/18/2025 Water/waste membership Water Environment Federation 701-0000-4360 94.50 3/18/2025 Water/waste membership 189.00 3/18/2025 Water Environment Federation 189.00 WDW Disney Res 101-1125-4381 291.38 4/16/2025 Advance deposit for lodging for GSMCON 2025 291.38 4/16/2025 WDW Disney Res 291.38 WEISSMAN 101-1534-4355 1,116.14 4/16/2025 Costumes for dance 1,116.14 4/16/2025 WEISSMAN 1,116.14 When I work 101-1617-4130 50.00 3/18/2025 WhenIWork Scheduling Software 50.00 3/18/2025 When I work 50.00 White House Custom Colour 101-1125-4300 19.51 3/18/2025 Heart of Chanhassen photo (Best of Show/extra copies) White House Custom Colour 101-1125-4300 19.51 3/18/2025 Heart of Chanhassen photo (category winners) AP - Check Detail (5/30/2025)Page 55 of 58 147 Last Name Acct 1 Amount Check Date Description 39.02 3/18/2025 White House Custom Colour 39.02 Wild West Hackin' Fest 101-1160-4370 1,150.00 4/16/2025 WWHF training Matt K 1,150.00 4/16/2025 Wild West Hackin' Fest 1,150.00 Winchester and Rye 101-1123-4381 9.00 3/18/2025 Lunch with Carver ED 9.00 3/18/2025 Winchester and Rye 9.00 WM MUELLER & SONS INC 101-1320-4157 296.66 5/14/2025 pothole patching WM MUELLER & SONS INC 101-1320-4157 183.82 5/14/2025 pothole patching 480.48 5/14/2025 WM MUELLER & SONS INC 101-1320-4157 485.03 5/22/2025 pothole patching WM MUELLER & SONS INC 101-1320-4157 451.36 5/22/2025 pothole patching WM MUELLER & SONS INC 101-1320-4157 274.82 5/22/2025 pothole patching 1,211.21 5/22/2025 WM MUELLER & SONS INC 101-1320-4157 398.58 5/29/2025 pothole patching WM MUELLER & SONS INC 700-0000-4150 276.64 5/29/2025 pothole patching WM MUELLER & SONS INC 101-1320-4157 184.73 5/29/2025 pothole patching 859.95 5/29/2025 WM MUELLER & SONS INC 2,551.64 XCEL ENERGY INC 101-1190-4320 -855.88 5/28/2025 Electric Charges XCEL ENERGY INC 101-1350-4320 26,040.85 5/28/2025 Electric Charges XCEL ENERGY INC 101-1312-4320 722.13 5/28/2025 Electric Charges AP - Check Detail (5/30/2025)Page 56 of 58 148 Last Name Acct 1 Amount Check Date Description XCEL ENERGY INC 700-0000-4320 90.27 5/28/2025 Electric Charges XCEL ENERGY INC 700-0000-4320 131.64 5/28/2025 Electric Charges XCEL ENERGY INC 700-0000-4320 1,977.16 5/28/2025 Electric Charges XCEL ENERGY INC 101-1120-1193 113.86 5/28/2025 Electric Charges XCEL ENERGY INC 101-1170-4320 39.60 5/28/2025 Electric Charges XCEL ENERGY INC 700-0000-4320 3,854.12 5/28/2025 Electric Charges XCEL ENERGY INC 101-1220-4320 828.68 5/28/2025 Electric Charges XCEL ENERGY INC 101-1190-4320 475.23 5/28/2025 Electric Charges XCEL ENERGY INC 101-1120-1193 125.52 5/28/2025 Electric Charges XCEL ENERGY INC 101-1220-4320 756.34 5/28/2025 Electric Charges XCEL ENERGY INC 101-1600-4320 49.35 5/28/2025 Electric Charges XCEL ENERGY INC 101-1170-4320 -1,213.90 5/28/2025 Electric Charges XCEL ENERGY INC 701-0000-4320 90.27 5/28/2025 Electric Charges XCEL ENERGY INC 700-0000-4320 -371.83 5/28/2025 Electric Charges 32,853.41 5/28/2025 XCEL ENERGY INC 32,853.41 ZARNOTH BRUSH WORKS INC 101-1320-4120 3,792.00 5/14/2025 gutter brooms 3,792.00 5/14/2025 ZARNOTH BRUSH WORKS INC 3,792.00 ZIEGLER INC 700-0000-4120 102.26 5/29/2025 belts 102.26 5/29/2025 ZIEGLER INC 102.26 Zoom 101-1160-4207 104.04 3/18/2025 Monthly zoom charges 104.04 3/18/2025 Zoom 101-1160-4207 104.04 4/16/2025 Monthly zoom webinar charges 104.04 4/16/2025 AP - Check Detail (5/30/2025)Page 57 of 58 149 Last Name Acct 1 Amount Check Date Description Zoom 208.08 2,268,372.93 AP - Check Detail (5/30/2025)Page 58 of 58 150 City Council Item June 9, 2025 Item Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 6551 Kirkwood Circle. File No.N/A Item No: D.12 Agenda Section CONSENT AGENDA Prepared By Stacy Osen, Administrative Support Specialist Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves an Encroachment Agreement allowing the property owner to expand their driveway located within a public drainage and utility easement." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY N/A BACKGROUND The property owners of 6551 Kirkwood Circle (Joseph Seifert & Jamie Lyn Seifert) desire to expand their driveway located within an existing public drainage and utility easement. The property is legally described as Lot 31, Block 1, Minnewashta Creek 2nd Addition. This expansion will encroach into an easement over a public storm sewer pipe and therefore the city requires an Encroachment Agreement (EA) be entered into. DISCUSSION The attached EA was drafted by the City Attorney's office and is signed by the property owner. Upon 151 city approval and execution, the EA will be recorded against the property. BUDGET N/A RECOMMENDATION Staff recommends City Council approve the Encroachment Agreement. ATTACHMENTS 6551 Kirkwood Circle -EA 6.9.25 152 (reserved lbr rec ording infor mation) ENCROACHMENT AGREEMENT AGREEMENT made this/4/6ay of 2025, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"), and JOSEPH SEIFERT and JAMIE LYN SEIFERT, husband and wife, ("Owners"). 1. BACKGROUND. Owners are the fee owners of certain real property located in the City of Chanhassen, County of Carver, State of Minnesota,legally described as follows: Parcel ID No. 254810250 Lot 3 l, Block l, MINNEWASHTA CREEK SECOND ADDITION. (abstract) having a street address of 6551 Kirkwood Cir., Excelsior, Minnesota 55331 ("Subject Property"). The City owns an easement for public drainage and utility purposes over portions of the Subject Property ("Easement Areas"). Owners desire to expand their driveway on the Subject Property that encroaches on the City's Easement Areas as depicted on the attached Exhibit ('A" ("Improvement"). 2361 l0vl 1 153 2. ENCROACHMENT AUTHORIZATION. The City hereby approves the encroachment in its Easement Areas on the Subject Property of the Improvement. Conditions of encroachment approval are as follows: . The City shall have no responsibility to maintain the Improvement located in the Easement Areas. o Owners must maintain the Improvement located on the Subject Property. o Owners are fully responsible and liable for any and all damage caused to the Improvement. o The Improvement must remain a minimum distance of five (5') feet from the outside edge of all drainage and utility structures (or 7.5' from the center of the manhole structure) and a minimum of two (2') feet from the outside edge of all storm sewer piping (or 3' from the center of the 15" Reinforced Concrete Pipe) as indicated on Exhibit A. Pipe location will be verified during final inspection of the fencing. o The Improvement must be offset from existing structure and piping as depicted in Exhibit A. Further, Owners agree that the Improvement shall be or are constructed consistent with all applicable federal, state and local laws and regulations. 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to encroach in the Easement Areas, Owners, for themselves, their heirs, successors and assigns, hereby agree to indemniff and hold the City harmless from any damage caused to the Subject Property, including the Improvement and removal of Improvement or portions thereof in the Easement Areas, caused in whole or in part by the encroachment into the Easement Areas. 4. TERMINATION OF AGREEMENT. The City may terminate this Agreement at any time if it is deemed reasonably necessary and that termination determination will be made at the sole discretion of the City. Prior to termination, the City will give the then owners of the Subject Property thiny (30) days advance written notice, except that no notice period will be required in the case of an emergency condition as determined solely by the City and this Agreement may then be terminated immediately. The property owners shall remove that portion of the Improvement to the extent the Improvement impacts the Easement Areas to the effective date of the termination of 22361 l0vl 154 this Agreement. If the owners fail to do so, the City may remove the Improvement to the extent the Improvement impacts the Easement Areas and charge the cost of removal back to the owners for reimbursement. 5. RECORDING. This Agreement shall run with the land and shall be recorded against the title to the Subject Property. . CITY OF CHANHASSEN By (sEAL)Elise Ryan, Mayor And Laurie Hokkanen, City Manager STATE OF MINNESOTA COUNTY OF CARVER The foregoing instrument was acknowledged before me this day of 2025, by Elise Ryan and by Laurie Hokkanen, respectively the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public ) )ss. ) J2361 l0vl 155 PROPERTY OWNERS: Hl Jamie Lyn Seifen STATE OF MINNESOTA ) couNrY oucanr=r i" The YY\arr foregoing instrument was acknowledged before me ttis 3P auy of ,2025, by Joseph Seifert, spouse to Jamie Lyn Seifert. Notary STATE OF MINNESOTA ) I Qurrec-]"COUNTY OF .r. - The foregoing instrument was acknowledged before me this I TV,' | ,2025,by Jamie Lyn Seifert, spouse to Joseph Seifert. M day of Notary Public DRAFTED BY: CAMPBELL KNtrrsoN, P rofe s s io n a I A s s o c i at i o n Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (65 l) 452-5000 AMP/mew 4 DEEANN M. TBIETHART Notary Publlc-Minnesota My Commlsdoo Eryi'os Jan. Or,202e M.DEEANN Notary 31, 2361 l0vl 156 EXHIBIT *A" sutv8 t Fot r DASCR: PTION: xr. Darrd l(o.6..x1 10r ll, Br,o<k l, sit&tEtlAsll:t etEEt sEcGtD tDDt?IcN.C!tt of ehrEhn.Ecn- C.rw.r Co!^tf- Llintrc.ot.. 11r.Jr'zL'€ !/ f',,'',V"t/ ///'f FF lPOS E T TOP E',OCI( :LE/ - clrlcr tL:loE EL I .i- (i, z'-r, \ {!.. { rop N I\ a.\ "noLar I ron fu,ytaoJ I l.)t t6 i ho,E'--r ttl 6. .raa,eoi ,"11. rllol ,1.H. oi ,f L3 0 t lrtt, ^h *^ Xr- & }l*tt 15" RCP-With Flared end ct€ s . 24., '- N I Crty or{ned Catch Basin tlris ir,"r.y r.. ?r.pt!.d by.a or lndcfur! ri r dull, ergrrr.r.{ F!c!E.rlc'trtl t.n.t s\rrrrsirI6n.n.! ! h.',,.,{cr }b-.r.,r: or th ut t ! At--J .21,--..a , {in o16l. F.tl.t..!ro^ rac. l:26? crotsy c.r'- l f y thrr ) 6," .. *, *B.rl-.gii- . -tr; ..+"i ,*r< {tezwaa--elg€td- I i 1 \ / /. I I ,ra'y'?t*p?t _l_ DriYeway I expansion I 2361l0vI 157 City Council Item June 9, 2025 Item Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 3861 Stratford Ridge. File No.N/A Item No: D.13 Agenda Section CONSENT AGENDA Prepared By Stacy Osen, Administrative Support Specialist Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves an Encroachment Agreement allowing the property owner to construct a fence located within a public drainage and utility easement." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY N/A BACKGROUND The property owners of 3861 Stratford Ridge (Philip Cameron & Katie Cameron) desire to construct a fence located within an existing public drainage and utility easement. The property is legally described as Lot 4, Block 2, Stratford Ridge. This fence will encroach into an easement over a sanitary main and water main and adjacent to public storm sewer pipe and therefore the city requires an Encroachment Agreement (EA) be entered into. DISCUSSION The attached EA was drafted by the City Attorney's office and is signed by the property owner. Upon 158 city approval and execution, the EA will be recorded against the property. BUDGET N/A RECOMMENDATION Staff recommends City Council approve the Encroachment Agreement. ATTACHMENTS 3861 Stratford Ridge -EA 6.23.25 159 (reserved fo r reco rdi ng info rmation) ENCROACHMENT AGREEMENT AGREEMENT made this day of 2025, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"), and PHILIP CAMERON and KATIE CAMERON, husband and wife, ("Owners"). 1. BACKGROUND. Owners are the fee owners of certain real property located in the City of Chanhassen, County of Carver, State of Minnesota, legally described as follows: Parcel ID No. 25.8060140 Lot4, Block 2, STRATFORD RIDGE. having a street address of 3861 Stratford Ridge, Excelsior, Minnesota 55331 ("Subject Property"). The City owns an easement for public drainage and utility purposes over portions of the Subject Property ("Easement Areas"). Owners desire to construct a fence on the Subject Property that encroaches on the City's Easement Areas as depicted on the attached Exhibit "A" (consisting of two pages) ("lmprovemento'). The Improvement will cross over and run parallel to a City 8" P.V.C. sanitary main and City 8" water main and will be adjacent to City storm main as depicted in Exhibit A. I236196v1 160 2. ENCROACHMENT AUTHORIZATION. The City hereby approves the encroachment in its Easement Areas on the Subject Property of the Improvement conditioned upon removable fence panels in areas where the fence encroaches on existing utilities and/or installation of gates having a clear span the width ofthe easement for City access to its easement areas. Further conditions of encroachment approval are as follows: o The Improvement must adhere with City Code Section 20-1019 which establishes location requiranents related to fences. o The Improvement shall be placed on the Subject Property and must not cross the property lines. . The City shall have no responsibility to maintain the Improvement located in the Easement Areas. o Owners must maintain the Improvement located on the Subject Property. o Owners are fully responsible and liable for any and all damage caused to the Improvement. o Expect for the two areas shown in Exhibit A when the Improvement will cross two City utilities, the Improvement must remain a minimum distance of five (5') feet from the outside edge of all drainage and utility structures (or7.5' from the center of the manhole structure) and a minimum of two (2') feet from the outside edge of all storm sewer piping (or 3' from the center of the 15" Reinforced Concrete Pipe) as indicated on Exhibit A. Pipe location will be verified during final inspection of the fencing. o The Improvement must be offset from existing structure and piping as depicted in Exhibit A. o The Improvement may be installed within 1" of the property line, as long as it meets pipe offset detail. Further, Owners agree that the Improvement shall be or are constructed consistent with all applicable federal, state and local laws and regulations. 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to encroach in the Easement Areas, Owners, for themselves, their heirs, successors and assigns, hereby agree to indemniff and hold the City harmless from any damage caused to the Subject Property, including the Improvement and removal of Improvements or portions thereof in the Easement Areas, caused in whole or in part by the encroachment into the Easement Areas. 2236196v1 161 4. TERMINATION OF AGREEMENT. The City may terminate this Agreement at any time if it is deemed reasonably necessary and that termination determination will be made at the sole discretion ofthe City. Prior to termination, the City will give the then owners ofthe Subject Property thirty (30) days advance written notice, except that no notice period will be required in the case of an emergency condition as determined solely by the City and this Agreement may then be terminated immediately. The property owners shall remove that portion of the Improvement to the extent the Improvement impacts the Easement Areas to the effective date of the termination of this Agreement. If the owners fail to do so, the City may remove the Improvement to the extent the Improvement impacts the Easement Areas and charge the cost of removal back to the owners for reimbursement. 5. RECORDING. This Agreement shall run with the land and shall be recorded against the title to the Subject Property. CITY OF CHANHASSEN By (sEAL)Elise Ryan, Mayor And Laurie Hokkanen, City Manager STATE OF MINNESOTA COLTNTY OF CARVER The foregoing instrument was acknowledged before me this day of 2025, by Elise Ryan and by Laurie Hokkanen, respectively the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on the corporation and pursuant to the authority granted by its City Council ) )ss. ) J236196v1 behalf of 162 Notary Public 4236196v1 163 PROPERTY OWNERS: Cameron Katie Cameron STATE OF MINNESOTA COUNTY OF DRAFTED BY: CelrpsBr,r- Kxursox, Professional Assoc iatio n Grand Oak Oflice Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (65 I ) 452-5000 AMP/mew ) )ss. The foregoing instrument was acknowledged before me this t day of 2025, by Philip Cameron, spouse to Katie Cameron. Notary STATE OF MINNESOTA ) couNrY oFMu-)* STACY KERBER OSEN Notary Public-Minnesota My Comml*slon Explror Jan 31. 20i17 The foregoing instrument was acknowledged before me this bY% day of W^Z ,2025, by Katie Cameron, spouse to Philip Cameron. Notary tzoz 't0 uef eadxS uoltslu'tllo'J ^nBlosauult l-c!lqn6 &ePP N]SO H38U3X ACVIS 5236196v1 I Notal y 164 EXHIBIT *A" Page I of 2 rtlrttlcltt a, xr.tfl"J DTr, ra llffirr l4t a, .l}q t, Itltlttro trrf!mrl oott?t, ttreor a""^ .'+'.t -"* +Itlr arrrr aln th. l{*atr6.l .,rqa.ra kE. la rol.rl.nahln.6 tnctldr ib..rrtEa F.F.rrv, li aa..i ior latl'.t tt .lt- .tr oth-r lrF.mt.a FFIC,\,IE'E EFI6EIE,F" -. -- 4tz -- ' i.arlrlr. .r!.-n ... h.-a |.!rt Stom Main Senitary Mein I P.V.C. tLlain D.t.P. I' r'/ //,r 6236196v I a'dn 165 STRUCTURE OUTER PIPE OUTER DIAI\.IETER LINE IO' D&U EASEI|ENT LINES Page2 of2 5'STRUCTURE OFFSET FENCE IIIN 1 " INSIDE PR@ERTY LINE PROPERTY LINE FENCE OFFSET FROM STRUCTURE AND PIPING OFFSET FENCE 7216196v I 166 City Council Item June 9, 2025 Item Approve Contract for Replacement of Public Works Salt Shed Canvas Cover File No.N/A Item No: D.14 Agenda Section CONSENT AGENDA Prepared By Kate Salihovic, Public Works Support Specialist Reviewed By Charlie Burke SUGGESTED ACTION The Chanhassen City Council approves a Not-To-Exceed Contract of $32,000 to ARO Construction for replacement of the Public Works salt shed cover. Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY The cover over the salt storage bin at the Public Works building has reached its expected lifespan and is in need of replacement as it is showing signs of deterioration. This cover protects the city's stockpile of salt from moisture. The existing cover was from the original construction of the public works facility. BACKGROUND N/A DISCUSSION Public Works solicited quotes from contractors for the replacement of the salt shed cover. A.R.O. Construction, LLC came back with the lowest quote. 167 Contractor Quote A.R.O. Construction, LLC $32,000.00 Greystone Construction $34,214.00 ClearSpan $47,370.70 The contract is our standard city contract for non-bid goods and services. BUDGET The funding for this improvement is outlined within the 2025 Capital Improvement Plan (CIP). The budget for this replacement is $42,000. RECOMMENDATION Staff recommends awarding the contract for replacement of the Public Works salt storage cover to A.R.O. Construction, LLC. ATTACHMENTS Salt Cover CIP A.R.O. Construction, LLC Quote-Salt Storage Cover A.R.O. Construction LLC Contract 168 169 170 171 FORM OF AGREEMENT- Salt Storage Cover.docx 1 NON-BID CONTRACT FOR PURCHASE OF GOODS AND SERVICES AGREEMENT made this 14th day of May, 2025, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and A.R.O. Construction, LLC, an Iowa limited liability company ("Contractor"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Request for Proposal, dated April 28th, 2025 C. Contractor’s Quote dated May 7th, 2025 In the event of a conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts. Contract Document “A” has the first priority and Contract Document “C” has the last priority. 2. CONTRACTOR OBLIGATIONS. The Contractor shall provide the goods, services and perform the work in accordance with the Contract Documents (“Work”). Contractor shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do all things necessary and ancillary thereto specified in the Contract Documents. 3. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. C. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. D. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 4. COMPENSATION. Contractor shall be paid by the City for the goods and services described in Paragraph 2 in accordance with the Quote, but not to exceed $ 32,000 which is inclusive of reimbursable expenses. The fee shall not be adjusted even if the estimated number of hours to 172 FORM OF AGREEMENT- Salt Storage Cover.docx 2 perform a task, or any other estimate, assumption or matter is wrong or exceeded. Payment shall be made periodically after a service has been completed and within thirty-five (35) days of receipt of an invoice. 5. COMPLETION DATE. The Contractor shall complete the Work on or before November 21st, 2025. 6. WARRANTY. The Contractor shall be held responsible for any and all defects in workmanship and materials and upon notification by the City shall immediately replace or repair the defective workmanship and materials without cost to the City. The Contractor warrants that only new unused materials will be used. The Contractor further warrants to the City that all materials and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. These warranties are in addition to any manufacturer's standard warranty, and any warranty provided by law. 7. RIGHTS AND REMEDIES. A. The duties and obligations imposed by the Contract Documents, and the rights and remedies available thereunder shall be in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. B. No action, or failure to act, by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of, or acquiescence in, any breach there under, except as may be specifically agreed in writing. 8. CHANGES TO WORK. Without invalidating the Contract, the City may, at any time, or from time to time, order additions, deletions or revisions in the work provided under this Agreement; these will be authorized by an amendment to the Contract. Upon approval of an amendment, Contractor shall proceed with the work provided under the amendment. Changes in the Contract Price shall be based upon the prices identified in the Quote provided or negotiated between the parties based on similar work provided in the Proposal. 9. UNAUTHORIZED WORK. Additional work performed without authorization of an amendment of this Contract will not entitle Contractor to an increase in the Compensation or an extension of the Contract. 10. DOCUMENTS. The City shall be the owner of all documents, reports, studies, analysis and the like prepared by the Contractor in conjunction with this contract. 11. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of goods and services to be provided. This contract may be terminated by the City at any time upon discovery by the City that the Contractor or any of its subcontractors has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in Minn. Stat. §16C.285, Subdivision 3, the Responsible Contractor statute. 173 FORM OF AGREEMENT- Salt Storage Cover.docx 3 12. STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional Contractor under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. 13. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Contractor’s negligence or its performance or failure to perform its obligations under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts Contractor may be liable. Contractor agrees this indemnity obligation shall survive the completion or termination of this Contract. 14. INSURANCE. Prior to the start of the project, Contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident 174 FORM OF AGREEMENT- Salt Storage Cover.docx 4 The Contractor’s insurance must be “Primary and Non-Contributory”. All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of insurance. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 15. INDEPENDENT CONTRACTOR. The City hereby retains the Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. The Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance under this Agreement. City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 16. SUBCONTRACTORS. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Contractor shall comply with Minnesota Statute § 471.425. Contractor must pay Subcontractor for all undisputed services provided by Subcontractor within ten days of Contractor’s receipt of payment from City. Contractor must pay interest of 1.5 percent per month or any part of a month to Subcontractor on any undisputed amount not paid on time to Subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 17. ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 175 FORM OF AGREEMENT- Salt Storage Cover.docx 5 20. CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 21. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 22. RECORDS/AUDIT. The Contractor shall maintain complete and accurate records of time and expense involved in the performance of services. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of City and Contractor relevant to the Agreement are subject to examination by City and Contactor, and either the Legislative Auditor or the State Auditor as appropriate. City and Contractor agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 23. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by the Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 24. TERMINATION. This Agreement may be terminated by City on two (2) days’ written notice delivered to Contractor at the address on file with the City. Upon termination under this provision if there is no fault of the Contractor, the Contractor shall be paid for goods and services rendered and reimbursable expenses until the effective date of termination. If the City terminates the Agreement because the Contractor has failed to perform in accordance with this Agreement, no further payment shall be made to the Contractor, and the City may retain another Contractor to undertake or complete the work identified in this Agreement. 176 FORM OF AGREEMENT- Salt Storage Cover.docx 6 Dated: , 20 CITY OF CHANHASSEN By: Elise Ryan, Mayor And: Laurie Hokkanen, City Manager A.R.O Construction, LLC 177 THOMAS OLSON 2035 410th Avenue Estherville, Iowa 51334 (712) 209-1702 tolsonaccusteel@gmail.com QUOTE To: CITY OF CHANHASSEN C/O CHARLIE BURKE CBURKE@CHANHASSENMN.GOV Date: 517125 Qty Description Unit price Subtotal 1 RECOVER FOR 50' X 80' COVERALL WITH ONE END WALL INCLUDES NEW PVC & NEW RATCHETS $17,500.00 LABOR AND EQUIPMENT $14,500.00 Sales Tax Total 0.00 $32,000.00 Quotation prepared by: Thomas Olson This is a quotation on the goods named, subject to the conditions noted below: All sales final, payment due upon receipt. To accept this quotation, sign here and return: THANK YOU FOR YOUR BUSINESS! 178 City Council Item June 9, 2025 Item 2025 Fleet Purchases - Bucket Truck File No.CIP V-106 Item No: D.15 Agenda Section CONSENT AGENDA Prepared By Kate Salihovic, Public Works Support Specialist Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves the replacement purchase for the Bucket Truck." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY This action is for approval of the replacement of the Streets Bucket Truck (V-106). BACKGROUND The existing Bucket Truck (#106) is a 1996 Chevrolet Kodiak C-70, with a 40-foot boom, making it 29 years old. It has ~28,000 miles. The truck is in excellent condition mechanically; however, the replacement is based more so on a factor of safety aspect of the telescoping bucket and arm. These are steel components with hydraulic hoses that weaken over time. We are also getting a longer boom to better accommodate the intended use and the public services the truck provides. The replacement is planned as a 2025 Mack MD6 42R SA, with a 50-foot boom. DISCUSSION 179 N/A BUDGET This purchase is included in the approved 2025-2029 Capital Improvement Plan (CIP). The CIP budget is $215,000. State Contract quotes amount to $246,491.78. The sale of the existing bucket truck is estimated to be at least $30,000, therefore offsetting the over budget amount. RECOMMENDATION Staff recommends purchasing the replacement Bucket Truck. ATTACHMENTS Bucket Truck CIP V106 ABM Quote V106 Nuss Quote 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 City Council Item June 9, 2025 Item Approve Purchase: Outdoor Furnishings for City Hall and Senior Center File No.Item No: D.16 Agenda Section CONSENT AGENDA Prepared By Laurie Hokkanen, City Manager Reviewed By SUGGESTED ACTION The Chanhassen City Council authorizes the purchase of outdoor furnishings for City Hall and the Senior Center." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY This purchase includes furniture for the Senior Center porch (4 rocking chairs and 2, 4-top square tables) and for the employee break patio on the 2nd level. Budget is being reserved if there is a desire to add additional furnishings to either location or the Grand Porch and upper balcony along W. 78th Street. Staff recommends waiting to occupy the building before purchasing additional furnishings. BACKGROUND The furniture is being purchased from LOLL Designs via Continua Interiors. More about LOLL, courtesy of their website: Based in Duluth, MN, Loll Designs is a designer/manufacturer of durable, all-weather, outdoor furniture and accessories made with HDPE (high density polyethylene), partially from recycled plastics 212 like milk jug containers and shampoo bottles. Using thoughtful, original designs and unique materials, Loll creates innovative, fun and high​ quality products proudly crafted in the USA. DISCUSSION BUDGET The furniture is included as part of the FFE budget for the Civic Campus. The total purchase price is $20,320.90 which includes delivery and set-up. The pricing is provided through the Omnia Partners joint purchasing contract: https://www.omniapartners.com/suppliers/loll-designs/public-sector/contract-documents#contract- 1693/ RECOMMENDATION Staff recommends proceeding with the purchase. ATTACHMENTS City of Chanhassen Civic Plaza Outdoor Furniture Proposal City of Chanhassen Outdoor Furniture Plan 213 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 1 of 9 bill to:City Hall 7700 Market Blvd Po Box 147 Chanhassen, MN 55317-0000 ATTN: Laurie Hokkanen Phone: 952-239-3040 Email: lhokkanen@chanhassenmn.gov install:City Hall 7700 Market Blvd Po Box 147 Chanhassen, MN 55317-0000 ATTN: Laurie Hokkanen Phone: 952-239-3040 Email: lhokkanen@chanhassenmn.gov group description qty unit price extended amount Installation Services Labor to receive deliver and install during regular business hours. 1.0 $2,668.90 $2,668.90 Individual Items $17,652.00 line description qty unit price extended amount 1 Loll Designs LL-FA-BS--SG Fresh Air Bar Stool SG:Sage Tag: Employee Break Terrace Quote #L100005400 2 $451.50 $903.00 2 Loll Designs LL-FA-BT26--SG Fresh Air Bar Table (26 inch) SG:Sage Tag: Employee Break Terrace Quote #L100005400 1 $696.50 $696.50 3 Loll Designs LL-LC-LLT--SG Tall Lollygagger Lounge Chair SG:Sage Tag: Employee Break Terrace Quote #L100005400 2 $626.50 $1,253.00 4 Loll Designs LL-LC-LLR--SG Lollygagger Rocker SG:Sage Tag: Employee Break Terrace Quote #L100005400 2 $661.50 $1,323.00 5 Loll Designs LL-FA-T78--SG Fresh Air Table (78 inch) SG:Sage Tag: Employee Break Terrace Quote #L100005400 1 $1,396.50 $1,396.50 214 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 2 of 9 6 Loll Designs LL-AL-DCH--SG Alfresco Dining Chair w/Handle SG:Sage Tag: Employee Break Terrace Quote #L100005400 6 $416.50 $2,499.00 7 Loll Designs LL-AL-DCH--SG Alfresco Dining Chair w/Handle SG:Sage Tag: Senior Center Terrace Quote #L100005400 8 $416.50 $3,332.00 8 Loll Designs LL-AL-ST36--SG Alfresco Square Table (36 inch) SG:Sage Tag: Senior Center Terrace Quote #L100005400 2 $661.50 $1,323.00 9 Loll Designs LL-FDN-RCH--SG Fredricksonn Rocking Chair SG:Sage Tag: Senior Center Terrace Quote #L100005400 4 $836.50 $3,346.00 10 Loll Designs FREIGHT Loll Freight Tag: X-FREIGHT Quote #L100005400 1 $1,580.00 $1,580.00 subtotal $20,320.90 total order $20,320.90 To pay via ACH please contact armn@continuainteriors.com or to pay by credit card please visit our client portal on our website continuainteriors.com Your order may be subject to additional tariffs or customs fees. These charges are the responsibility of the buyer and are due upon final invoice. Financing Options For Your Consideration 215 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 3 of 9 We are pleased to offer the following finance proposal to help facilitate the acquisition of your new furniture solution. Our goal is to offer the best possible payment structure to meet your current and ongoing financing needs. We can provide a wide range of financing options and customized terms. Below, you will find the monthly payment amount for this proposal, for the typical 60 month term. This proposed financing is subject to credit approval by LEAF Commercial Capital, Inc. or its affiliates and the execution of mutually acceptable lease documentation. Does not include applicable sales tax. If you are interested in learning more about this option, please contact your Continua Interiors representative. Total Monthly Payment Amount: $ 421.86 216 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 4 of 9 GENERAL TERMS & CONDITIONS OF SALE The following General Terms and Conditions of Sale apply to the product and service order placed by the undersigned BUYER with Continua Interiors of Minnesota, LLC. 1.Purchase Orders a.If purchase orders are required, BUYER must provide copies of the purchase orders at the time of ordering product or services from CONTINUA INTERIORS OF MINNESOTA, LLC. b.The prices quoted by CONTINUA INTERIORS OF MINNESOTA, LLC in the Proposal are valid for 30 days from the date of the Proposal, provided that should a manufacturer or third-party service provider increase the price of a product, CONTINUA INTERIORS OF MINNESOTA, LLC may increase the price to BUYER by an amount up to such increase. These Terms and Conditions shall continue in effect until the completion of all work under the Proposal. 2.Down Payment a.A down payment of 50% of the order total is required for orders over $10,000. b.Any down payments required by the manufacturer more than 50% shall be required of the BUYER before the order is placed. 3.Invoicing a.After down payment, the remaining balance will be invoiced when project installation is substantially complete, as determined by CONTINUA INTERIORS OF MINNESOTA, LLC. b.CONTINUA INTERIORS OF MINNESOTA, LLC reserves the right to send progress billings for installations and product orders that take more than one week. Any product being held (i) at BUYER’s request or (ii) because the installation site is not yet ready for installation, will be invoiced in full upon CONTINUA INTERIORS OF MINNESOTA, LLC receipt of the same. Payments are to be made in accordance with the terms in Section 5. 4.Taxes a.Any manufacturer’s tax, occupation tax, use tax, sales tax, excise tax, value-added tax, duty, custom, inspection, tariff or testing fee, or any other tax, fee or charge of any nature whatsoever imposed by any governmental authority, on or measured by the transaction between CONTINUA INTERIORS OF MINNESOTA, LLC and BUYER shall be paid by BUYER in addition to the prices quoted or invoiced. In the event CONTINUA INTERIORS OF MINNESOTA, LLC is required to pay any such tax, fee or charge, BUYER shall reimburse CONTINUA INTERIORS OF MINNESOTA, LLC therefore; or in lieu of such payment, BUYER shall provide CONTINUA INTERIORS OF MINNESOTA, LLC at the time the order is submitted with an exemption certificate or other document acceptable to the authority imposing the same. Should CONTINUA INTERIORS OF MINNESOTA, LLC, in its sole discretion, determine that the exemption document provided by BUYER does not clearly meet the requirements of the authority imposing a tax, BUYER hereby agrees to pay such tax in full. 5.Payment a.All payments for project completion or progressive invoices are due per payment terms on the invoice. BUYER may hold up to 10% retainage for uncompleted installation, or an amount equal to the selling price of any backordered or undelivered merchandise. b.Payment may not be withheld for any product not delivered due to (i) BUYER’s request or (ii) the installation site not being ready for installation. c.Title to the merchandise passes to the BUYER when the full purchase price and all other charges under this agreement are paid in full. d.Balances past due shall bear interest payable to CONTINUA INTERIORS OF MINNESOTA, LLC at a rate of 1.5% per month of simple interest. e.CONTINUA INTERIORS OF MINNESOTA, LLC shall retain, and BUYER hereby grants, a security interest in the goods sold hereunder, until BUYER has completed payment of the purchase price, plus accrued interest, and fully performed all the other terms and conditions hereof. CONTINUA INTERIORS OF MINNESOTA, LLC shall be entitled, and BUYER hereby authorizes CONTINUA INTERIORS OF MINNESOTA, LLC, without further action of BUYER, to prepare and file one or more Financing Statements pursuant to the Uniform Commercial Code to evidence this lien in form satisfactory to CONTINUA INTERIORS OF MINNESOTA, LLC (and the Proposal, these Terms and Conditions and any purchase orders each may serve as a security agreement for that purpose). The goods covered hereby shall remain strictly personal property, irrespective of the mode of its attachment to realty, the consequences of its being disturbed or removed, or the use made of it. BUYER shall maintain the goods covered hereby in good condition and repair and not permit its value to be impaired. BUYER shall not sell, mortgage, pledge or otherwise deal in or encumber the goods or any part of it or permit it to be removed from the place where first installed, for so long as any amounts under these Terms and Conditions remains unpaid, without CONTINUA INTERIORS OF MINNESOTA, LLC’S prior written consent. f.If the BUYER defaults on payment, CONTINUA INTERIORS OF MINNESOTA, LLC after 180 days from the invoice date may repossess the merchandise. 6.Credit Cards a.For orders transacted via credit card, a processing fee of 3.5% of the total order amount will be applied. This fee covers the costs associated with credit card transactions. CONTINUA INTERIORS OF MINNESOTA, LLC accepts Visa, MasterCard, and American Express credit cards. 217 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 5 of 9 7.Changes, Cancellations, and Returns a.The order to which these General Terms apply may not be changed or canceled, nor products returned except in the event of non-conforming goods, in whole or in part, by the BUYER without CONTINUA INTERIORS OF MINNESOTA, LLC’S written consent. b.The BUYER agrees in all respects to the price and terms set forth in the order, and acknowledges that a modification may only be made by a written Change Order signed by both parties. c.A written Change Order may include revised product costs, restocking fees and any other associated costs. 8.Shipments, Deliveries, Freight, and Claims a.All product shipments are made to CONTINUA INTERIORS OF MINNESOTA, LLC or shipped directly from the manufacturer to the BUYER, as determined by CONTINUA INTERIORS OF MINNESOTA, LLC. CONTINUA INTERIORS OF MINNESOTA, LLC shall not be held responsible for damages or delays due to an act or circumstance that is outside of CONTINUA INTERIORS OF MINNESOTA, LLC’S control. Partial shipments may be necessary and are at the discretion of the manufacturer. Freight charges incurred by CONTINUA INTERIORS OF MINNESOTA, LLC will be invoiced to BUYER. Claims for transportation damage will be BUYER’s responsibility if BUYER receives merchandise directly from the manufacturer. b.BUYER is responsible for insurance coverage for loss of product due to damage or theft of product beginning when product is received at the job site. c.A shipping or fuel surcharge may be applied to an order to cover the market fluctuations in fuel prices. d.Shipping and freight charges are subject to change. 9.Documentation/Drawings/Field Measurements a.The contract documents may consist of this agreement, a scope of work (SOW), shop drawings, elevations, pricing, formal line drawings and other project related documentation required to complete the project. b.Field measuring may be required prior to shop drawing submission and final plan signoff. BUYER plan review and signoff is required prior to placement of any modular wall, AV, millwork, electrical/low voltage installation or custom furniture application. All field verifications will be noted on shop drawings for BUYER signoff. 10.Warehouse Receiving and Storage a.If product is shipped to CONTINUA INTERIORS OF MINNESOTA, LLC’S warehouse, CONTINUA INTERIORS OF MINNESOTA, LLC will receive, inspect, and store for up to 30 days. After 30 days, storage charges may be assessed for product held in CONTINUA INTERIORS OF MINNESOTA, LLC’S warehouse. b.Storage fees, using current market rates based on storage location, may be quoted and applied if a BUYER’s job site is not ready for a scheduled delivery, or the BUYER modifies the schedule after a delivery acknowledgment does not allow CONTINUA INTERIORS OF MINNESOTA, LLC to delay product delivery. There are no storage fees for conditions or circumstances related to CONTINUA INTERIORS OF MINNESOTA, LLC performance. 11.Postponement Storage and Labor Costs a.In the event BUYER requests postponement of agreed upon delivery of goods to BUYER’s site, CONTINUA INTERIORS OF MINNESOTA, LLC may at its option receive and store product at additional cost to the BUYER, or in the instance of a direct shipment to BUYER, transfer the goods to storage for the BUYER's account and at the BUYER's risk and expense. Such a transfer to storage shall be deemed delivery to the BUYER for all purposes, including invoicing and payment for product only. b.CONTINUA INTERIORS OF MINNESOTA, LLC will bill the published rates listed in this agreement or prevailing industry rates for storage. c.BUYER’s insurance company will be responsible for any loss of product due to theft or damage incurred while product is stored at a BUYER’s on-site or off-site facility. 218 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 6 of 9 12.Maintenance and Repair; Warrantees a.All product is guaranteed according to manufacturers’ published warranties only. BUYER acknowledges receipt of all manufacturers’ warranty documentation, cleaning instructions with cleaning product recommendations, and maintenance information, for all products purchased. BUYER further acknowledges that it is responsible for all post-installation cleaning and maintenance of products, that use of unapproved cleaning products or improper cleaning or maintenance practices may void manufacturer’s warrantees, and that any post-installation product damage resulting from use of unapproved cleaning products, improper cleaning or maintenance practices, or any other cause is not CONTINUA INTERIORS OF MINNESOTA, LLC’S responsibility. In no event will CONTINUA INTERIORS OF MINNESOTA, LLC be responsible for any post-installation damage to products, whether resulting from BUYER’s use of unapproved cleaning products, improper maintenance practices, or other cause. b.BUYER’S SOLE REMEDY FOR ANY PRODUCT DEFECT OR DAMAGE WILL BE UNDER THE MANUFACTURER’S WARRANTY, IF ANY, AND CONTINUA INTERIORS OF MINNESOTA, LLC WILL HAVE NO OBLIGATION TO ASSIST BUYER IN CONNECTION WITH ANY MANUFACTURER’S WARRANTY CLAIMS. In the event BUYER requests CONTINUA INTERIORS OF MINNESOTA, LLC to perform any repairs or maintenance not covered by warranty, CONTINUA INTERIORS OF MINNESOTA, LLC will provide those services at its current hourly rate plus applicable trip charges. c.CONTINUA INTERIORS OF MINNESOTA, LLC MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR THAT THE PRODUCTS OR ITS SERVICES WILL BE FIT FOR ANY PARTICULAR OR UNUSUAL USE. IN NO EVENT WILL CONTINUA INTERIORS OF MINNESOTA, LLC BE LIABLE TO THE BUYER FOR ANY INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES. d.CONTINUA INTERIORS OF MINNESOTA, LLC offers a 90-day workmanship warranty on all projects. Warranty does not cover environmental, BUYER network, defective products or BUYER driven changes that are considered outside of the original scope of work (SOW). Owner Furnished Equipment (OFE) warranty service is not included in this agreement. DELIVERY AND INSTALLATION TERMS & CONDITIONS OF SALE 13.Delivery & Installation a.The BUYER agrees that the space will be complete and ready for product installation, and that CONTINUA INTERIORS OF MINNESOTA, LLC will have free and clear access to the space. The BUYER also acknowledges that they will have official occupancy of the space the product is being delivered. b.CONTINUA INTERIORS OF MINNESOTA, LLC will inform BUYER of an estimated date of delivery (“Estimated Delivery Date”) when CONTINUA INTERIORS OF MINNESOTA, LLC receives an estimated shipping date from its supplier or manufacturer. The Estimated Delivery Date is not a guaranteed delivery date. BUYER recognizes and acknowledges that the Estimated Delivery Date is merely an estimate and is subject to change by CONTINUA INTERIORS OF MINNESOTA, LLC or the manufacturer without notice. c.Additional fees and/or trip charges may apply if the BUYER’s site is not complete and ready for installation. CONTINUA INTERIORS OF MINNESOTA, LLC will document any additional fees in a change order. 14.Normal Business Hours a.If included in the scope of services and specifically itemized in the proposal, delivery and installation work will be performed during normal business hours--7:00am-3:30pm--Monday through Friday unless other specific agreements are made in writing and included with CONTINUA INTERIORS OF MINNESOTA, LLC’S proposal. b.Installation done after normal business hours, on weekends, or on holidays will be subject to an additional overtime premium charge and subject to CONTINUA INTERIORS OF MINNESOTA, LLC’S acceptance, unless such agreement was specifically agreed to in the final proposal. c.CONTINUA INTERIORS OF MINNESOTA, LLC overtime rates are 1.5X the published hourly rates Monday-Friday and 2.0X the published hourly rate Saturday and Sunday. Any change orders or work order changes must be in writing and signed by both parties prior to performance of any modified services by CONTINUA INTERIORS OF MINNESOTA, LLC. 15.Labor a.If trade regulations enforced at the time and place of installation require the use of tradesmen at the site other than CONTINUA INTERIORS OF MINNESOTA, LLC’S own installation personnel or subcontractor, BUYER will pay any resulting additional costs. 219 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 7 of 9 16.Electrical/Low Voltage/Network Systems Hookup a.A licensed electrician may be required to install electrical products including outlets, tasklights and connections to base building power. If CONTINUA INTERIORS OF MINNESOTA, LLC determines that an electrician is required, BUYER will be responsible for contracting and paying all costs of the electrician and the electrical installation. b.Low voltage vendor and coordination will be managed by BUYER unless included in the CONTINUA INTERIORS OF MINNESOTA, LLC work order or scope of work. c.Access to power, lighting and low voltage will be documented and available. d.Adequate and functioning network access along with permissions will be granted to CONTINUA INTERIORS OF MINNESOTA, LLC to install and test electrical and Audio-Visual installed products. e.Software licenses provided by the BUYER, such as Microsoft Teams, Zoom, WebEx and others, which is required and called out in the scope of work (SOW) will need to be registered and ready to be activated prior to installation. f.BUYER will provide access and Vendor contacts for PBX, SIP UC and phone systems if required. g.CONTINUA INTERIORS OF MINNESOTA, LLC is not responsible for any underground trenching or installation for outside wiring. h.Any schedule change caused by BUYER's failure to complete defined IT configuration steps by the agreed date will necessitate BUYER executing a change order for payment of labor time lost or unable to be utilized before work will be rescheduled. i.Rescheduled installations due to BUYER's failure to complete IT configuration steps are subject to CONTINUA INTERIORS OF MINNESOTA, LLC’S labor availability. CONTUNIA INTERIORS is not responsible for the additional costs BUYER may incur due to these delays in installation. j.CONTINUA INTERIORS OF MINNESOTA, LLC is not responsible for client network readiness. All end points are required to be patched in prior to AV installation. 17.Installation a.CONTINUA INTERIORS OF MINNESOTA, LLC’S installers will be responsible for clearing all product packing materials at the site, cleaning the product they installed, and noting any warranty work or parts needed during a final walk-through inspection with the BUYER. b.BUYER is responsible for providing access to recycling and garbage removal created by the delivery and installation of this proposal. CONTINUA INTERIORS OF MINNESOTA, LLC will work with the site contact to determine where to dispose of said garbage and recycling. c.If CONTINUA INTERIORS OF MINNESOTA, LLC is required to remove them from the site, charges may incur for disposal and labor unless noted in proposal. 18.Job Site Conditions & Services a.All quotes are based upon BUYER’s job site being “Site Ready” prior to product delivery. Site Ready is defined as: clean, clear of all obstructions, and free of debris, and all painting, carpet, data cabling and ceilings are fully complete. Charges will be assessed to BUYER for excessive handling, storage and transportation incurred because of site conditions, activity of other trades, or other reasons not specifically identified in the quotation, at standard hourly rates, or at actual charges, if labor is performed by a third party. b.The BUYER will insure at its expense that the job site is ready to accept furniture and/or audio visual equipment with construction complete (ceiling grid and tile in, wall covering/paint done, carpet and baseboard finished, electrical/data work done, etc.) and the space free of trades (punch list trades only), as well as clean and free of debris. c.BUYER will furnish electrical current, heating, lighting, trash disposal containers, hoisting and/or elevator services, and suitable unobstructed dock space, moving and staging areas at the job site without charge to CONTINUA INTERIORS OF MINNESOTA, LLC. If CONTINUA INTERIORS OF MINNESOTA, LLC is required to remove or handle existing furniture or audio-visual equipment, the additional cost of moving, handling and transporting shall be billed to BUYER on an hourly basis. Once the installation has begun, BUYER agrees to assume any expense incurred by CONTINUA INTERIORS OF MINNESOTA, LLC due to such changes made at BUYER’s request or for any reason beyond CONTINUA INTERIORS OF MINNESOTA, LLC’S control. 19.Loss or Damage a.After the product is delivered to the BUYER’s site, any loss or damage by weather, other trades such as painting or plastering, fire or other elements, shall be the responsibility of the BUYER, and the BUYER agrees to hold CONTINUA INTERIORS OF MINNESOTA, LLC harmless from loss for such reasons. 20.Special Packaging a.If special packaging or handling is required that is not contained in the specifications, it will be subject to an additional charge that will be set out on CONTINUA INTERIORS OF MINNESOTA, LLC’S invoice to the BUYER. 21.Staging & Storage Space a.If products arrive at BUYER’s site earlier than the Estimated Delivery Date, the BUYER will provide safe and adequate storage space. If the space provided is inconveniently located or on another floor, the extra cost of such moving the products will be reimbursed to CONTINUA INTERIORS OF MINNESOTA, LLC by BUYER. 220 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 8 of 9 22.Limitation of Liability a.With respect to breaches of this contract, CONTINUA INTERIORS OF MINNESOTA, LLC’S liability shall in no event exceed the contract price. CONTINUA INTERIORS OF MINNESOTA, LLC SHALL NOT BE SUBJECT TO AND DISCLAIMS: (1) ANY OBLIGATIONS OR LIABILITIES ARISING OUT OF BREACH OF CONTRACT OR OF WARRANTY NOT EXPRESSLY SET FORTH HEREIN, (2) ANY OBLIGATIONS WHATSOEVER ARISING FROM TORT CLAIMS (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ARISING UNDER OTHER THEORIES OF LAW WITH RESPECT TO PRODUCTS SOLD OR SERVICES RENDERED BY CONTINUA INTERIORS OF MINNESOTA, LLC, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATING THERETO, AND (3) ALL CONSEQUENTIAL, INCIDENTAL, CONTINGENT AND SPECIAL DAMAGES WHATSOEVER. 23.Indemnification a.BUYER shall indemnify CONTINUA INTERIORS OF MINNESOTA, LLC against any and all losses, liabilities, damages and expenses (including, without limitation, attorneys fees and other costs of defending any action) which CONTINUA INTERIORS OF MINNESOTA, LLC may incur as a result of any claim by BUYER or others arising out of or in connection with the products and/or services sold hereunder and based on product or service defects not proven to have been caused solely by CONTINUA INTERIORS OF MINNESOTA, LLC’S negligence. 24.Acts beyond reasonable control a.CONTINUA INTERIORS OF MINNESOTA, LLC shall not be liable for any delay or failure to deliver any or all the product caused by labor disputes, strikes, act of God, or other delay beyond the reasonable control of CONTINUA INTERIORS OF MINNESOTA, LLC. In such instances, any deadlines for delivery shall be adjusted by a reasonable amount. 25.Governing Law / Attorneys fees a.The terms of this Agreement shall be governed by the laws of the State of Minnesota (without regard to conflict of laws provisions). The parties agree that any action or proceeding to enforce or arising out of this Agreement shall be commenced only in state or federal courts located in Minneapolis, MN. The parties consent to such jurisdiction, agree that venue will be proper in such courts and waive any objections based upon Forum Non Conveniens. BUYER shall reimburse CONTINUA INTERIORS OF MINNESOTA, LLC for all reasonable attorneys’ fees and collection costs incurred by CONTINUA INTERIORS OF MINNESOTA, LLC to enforce its rights against BUYER under these Terms and Conditions. 26.Entire Agreement a.Unless otherwise agreed to in writing between BUYER and CONTINUA INTERIORS OF MINNESOTA, LLC, this document is intended by all parties as the final expression of their agreement and supersedes all other purchase orders or documents provided by BUYER. 221 Proposal Continua Interiors of Minnesota 9800 8th Avenue North Plymouth, MN 55441 763-417-3300 quote / order no.7818 date 05/22/2025 sales representative Kimberly Kirkeide order name City of Chanhassen Civic Plaza - Outdoor Furniture terms NET 15 page 9 of 9 In acknowledgment of Agreement the BUYER, ______________________________________________________________________________ and CONTINUA INTERIORS OF MINNESOTA, LLC have had this Agreement signed by their duly authorized officers. BUYER Continua Interiors of Minnesota, LLC (Print) Name and Title (Print) Name and Title Signature Date Signature Date 222 CH.19CH.08CH.09CH.09CH.08CH.08CH.08CH.09CH.08CH.08CH.084'-3" T.08 drawn by : CORE order number: continuainteriors.com 318 n carpenter, floor 6 chicago il 60606 (312) 212-5100 1660 busse road waukesha wi 53188 (414) 287 0000 sheet type : 550 bond street lincolnshire il 60069 (847) 325 1000 mscholl May not be duplicated or distributed without the written consent of Continua Interiors 720 williamson st madison wi 53703 (608) 216 7900 i:\Customers\City of Chanhassen\[Drawings]\Working Furniture Drawings\CET\CITY OF CHANHASSEN - NEW CIVIC PLAZA.cmdrw 9800 8th avenue north plymouth mn 55441 (763) 417 3300 5/15/2025 9 sunnen drive maplewood mo 63143 (314) 300 5900 1/1 Furniture Plan file path: City of Chanhassen sheet # [] date: 223 City Council Item June 9, 2025 Item Approve Contract: Public Safety communication equipment for new City Hall File No.ENG 23-10 Item No: D.17 Agenda Section CONSENT AGENDA Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves a contract with KonectaEV, LLC for furnishing and installing public safety communication equipment at the new city hall." Motion Type Simple Majority Vote of members present Strategic Priority Operational Excellence SUMMARY Installation of radio and cellular phone antenna in the new city hall to allow public safety (Fire Department and CCSO) communications to work in the underground garage. BACKGROUND The new city hall has an underground garage that won't work with over the air signals for the networks used by public safety staff. Antenna expanders (sometimes referred to as repeaters) are needed. There are only a few contractors that deal with these services. Staff reached out to four contractors that the Fire Department and Carver County advised to do the work. We received quotes from only two of them. DISCUSSION The contract is based on the city's standard template for Non-Bid Goods and Services (with Responsible Contractor provisions). 224 The low quote, KonectaEV, is a reputable company that has dozens of similar installations for other public agencies. BUDGET Two quotes were received for the scope of work: Scope KonectaEV ANCOM Public Safety Radio $32,238.56 $56,063.24 Cellular Repeater $59,236.64 $123,415.14 Total $91,475.20 $179,478.38 The costs are included in the overall Civic Campus project budget. RECOMMENDATION Staff recommends approval of the contract with KonectaEV. ATTACHMENTS Agreement Chanhassen KonectaUSA City Hall Public Safety System 225 FORM OF AGREEMENT - Chanhassen_KonectaUSA - City Hall Public Safety System 1 NON-BID CONTRACT FOR PURCHASE OF GOODS AND SERVICES For a Public Safety Communications System related to the new Chanhassen City Hall AGREEMENT made this 9th day of June, 2025, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and KonectaUSA, LLC, a Minnesota Limited Liability Company ("Contractor"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A.This Agreement. B.Contractor’s Quotes dated April 11, 2025. C.Contractor’s Budgetary Design Packages dated April 10, 2025 In the event of a conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts. Contract Document “A” has the first priority and Contract Document “C” has the last priority. 2.CONTRACTOR OBLIGATIONS. The Contractor shall provide the goods, services and perform the work in accordance with the Contract Documents (“Work”). Contractor shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do all things necessary and ancillary thereto specified in the Contract Documents. 3.CONTRACTOR’S REPRESENTATIONS. A.Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B.Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. C.Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. D.The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 226 FORM OF AGREEMENT - Chanhassen_KonectaUSA - City Hall Public Safety System 2 4. COMPENSATION. Contractor shall be paid by the City for the goods and services described in Paragraph 2 in accordance with the Quotes, but not to exceed $ 91,475.20 which is inclusive of reimbursable expenses. The fee shall not be adjusted even if the estimated number of hours to perform a task, or any other estimate, assumption or matter is wrong or exceeded. Payment shall be made periodically after a service has been completed and within thirty-five (35) days of receipt of an invoice. 5. COMPLETION DATE. The Contractor shall complete the Work on or before August 25, 2025. 6. WARRANTY. The Contractor shall be held responsible for any and all defects in workmanship and materials and upon notification by the City shall immediately replace or repair the defective workmanship and materials without cost to the City. The Contractor warrants that only new unused materials will be used. The Contractor further warrants to the City that all materials and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. These warranties are in addition to any manufacturer's standard warranty, and any warranty provided by law. 7. RIGHTS AND REMEDIES. A. The duties and obligations imposed by the Contract Documents, and the rights and remedies available thereunder shall be in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. B. No action, or failure to act, by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of, or acquiescence in, any breach there under, except as may be specifically agreed in writing. 8. CHANGES TO WORK. Without invalidating the Contract, the City may, at any time, or from time to time, order additions, deletions or revisions in the work provided under this Agreement; these will be authorized by an amendment to the Contract. Upon approval of an amendment, Contractor shall proceed with the work provided under the amendment. Changes in the Contract Price shall be based upon the prices identified in the Quote provided or negotiated between the parties based on similar work provided in the Proposal. 9. UNAUTHORIZED WORK. Additional work performed without authorization of an amendment of this Contract will not entitle Contractor to an increase in the Compensation or an extension of the Contract. 10. DOCUMENTS. The City shall be the owner of all documents, reports, studies, analysis and the like prepared by the Contractor in conjunction with this contract. 11. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of goods and services to be provided. This contract may be terminated by the City at any time upon discovery by the City that the Contractor or any of its subcontractors has submitted a false 227 FORM OF AGREEMENT - Chanhassen_KonectaUSA - City Hall Public Safety System 3 statement under oath verifying compliance with any of the minimum criteria set forth in Minn. Stat. §16C.285, Subdivision 3, the Responsible Contractor statute. 12. STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional Contractor under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. 13. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Contractor’s negligence or its performance or failure to perform its obligations under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts Contractor may be liable. Contractor agrees this indemnity obligation shall survive the completion or termination of this Contract. 14. INSURANCE. Prior to the start of the project, Contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: $500,000 – Bodily Injury by Disease per employee 228 FORM OF AGREEMENT - Chanhassen_KonectaUSA - City Hall Public Safety System 4 $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Contractor’s insurance must be “Primary and Non-Contributory”. All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of insurance. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 15. INDEPENDENT CONTRACTOR. The City hereby retains the Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. The Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance under this Agreement. City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 16. SUBCONTRACTORS. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Contractor shall comply with Minnesota Statute § 471.425. Contractor must pay Subcontractor for all undisputed services provided by Subcontractor within ten days of Contractor’s receipt of payment from City. Contractor must pay interest of 1.5 percent per month or any part of a month to Subcontractor on any undisputed amount not paid on time to Subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 17. ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties 229 FORM OF AGREEMENT - Chanhassen_KonectaUSA - City Hall Public Safety System 5 relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20. CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 21. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 22. RECORDS/AUDIT. The Contractor shall maintain complete and accurate records of time and expense involved in the performance of services. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of City and Contractor relevant to the Agreement are subject to examination by City and Contactor, and either the Legislative Auditor or the State Auditor as appropriate. City and Contractor agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 23. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by the Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 24. TERMINATION. This Agreement may be terminated by City on two (2) days’ written notice delivered to Contractor at the address on file with the City. Upon termination under this provision if there is no fault of the Contractor, the Contractor shall be paid for goods and services rendered and reimbursable expenses until the effective date of termination. If the City terminates the Agreement because the Contractor has failed to perform in accordance with this Agreement, no further payment shall be made to the Contractor, and the City may retain another Contractor to undertake or complete the work identified in this Agreement. 230 FORM OF AGREEMENT - Chanhassen_KonectaUSA - City Hall Public Safety System 6 Dated:__________________, 2025 CITY OF CHANHASSEN By: Elise Ryan, Mayor And: Laurie Hokkanen, City Manager Dated:__________________, 2025 KonectaUSA, LLC By: Print Name:_________________________________ Its:________________________________________ June 4th Dave Schlange Director 231 KonectaUSA, LLC 6315 16th Ave S Minneapolis, MN 55423-1747 +16123631113 david.schlange@konectausa.com www.konectausa.com Recommendation ADDRESS Charles Howley City of Chanhassen SHIP TO Charles Howley City of Chanhassen RECOMMENDATION #DATE EXPIRATION DATE 4668 04/11/2025 07/31/2025 STATE MN DESCRIPTION QTY RATE AMOUNT Public Safety System 1 19,343.56 19,343.56 Turnkey Solution: System Design, Complete Installation, and Certification of Coverage. *Lift rental additional if needed. *Roof penetration and electrical work not included. *50 percent deposit required for turnkey installation. 1 9,160.00 9,160.00 Trip Charge 11 50.00 550.00T Project Management Services 1 2,290.00 2,290.00T Shipping Fees 1 895.00 895.00T SUBTOTAL 32,238.56 TAX 0.00 TOTAL $32,238.56 Accepted By Accepted Date 232 KonectaUSA, LLC 6315 16th Ave S Minneapolis, MN 55423-1747 +16123631113 david.schlange@konectausa.com www.konectausa.com Recommendation ADDRESS Charles Howley City of Chanhassen SHIP TO Charles Howley City of Chanhassen RECOMMENDATION #DATE EXPIRATION DATE 4669 04/11/2025 07/31/2025 STATE MN DESCRIPTION QTY RATE AMOUNT Cellular Repeater System 1 38,546.64 38,546.64 Turnkey Solution: System Design, Complete Installation, and Certification of Cellular Coverage. *Lift rental additional if needed. *Roof penetration and electrical work not included. *50 percent deposit required for turnkey installation. 1 13,755.00 13,755.00 Project Management Services 1 3,440.00 3,440.00T Cellular Annual Monitoring Service 1 1,995.00 1,995.00T Trip Charge 20 50.00 1,000.00T Shipping Fees 1 500.00 500.00T SUBTOTAL 59,236.64 TAX 0.00 TOTAL $59,236.64 Accepted By Accepted Date 233 Budgetary Design PackageChanhassen City Hall – 2 Layer Quatra EVOApril 10, 2025Gary Mayer, RF Engineer 234 LMR 600/400 Coax(2X) CAT-6 CableLMR 195 JumperCable LegendInterconnect DiagramRoof100’5’ (included with each Lightning Arrestor Kit)At&t/FirstNetT-MobileVerizonLightning Arrestors & Ground Bar (3X) Roof Mount and PadHeadend LocationLevel 2Quatra EVONetwork UnitLevel 2Quatra EVONetwork Unit3’EVO CUOmni Antenna3’Omni AntennaDC5EVO CU6’(4x) Cat 6 (4x) Cat 6EVO CUOmni Antenna3’DC5Omni AntennaEVO CU6’100’100’235 Interconnect DiagramLevel 1EVO CUOmni Antenna3’Omni AntennaDC5EVO CU6’(4x) Cat 6 (4x) Cat 6EVO CUOmni Antenna3’DC5Omni AntennaEVO CU6’Lower Level(4x) Cat 6EVO CUOmni Antenna3’DC5EVO CU6’Omni AntennaDC5236 Budgetary Coverage Design and Equipment LocationsLevel 2237 Budgetary Coverage Design and Equipment LocationsLevel 1238 Budgetary Coverage Design and Equipment LocationsLower Level239 Budgetary Design PackageChanhassen City Hall – Shield SoloApril 10, 2025Gary Mayer, RF EngineerNote: The information contained herein is a recommendation of hardware and conceptual placement of hardware based upon the information available. It is not a guarantee of coverage, connectivity, or service for the site or the devices that may be used at the site. A formal iBwave (or other certified RF Propagation modeling software) design is recommended prior to ordering of any materials or installation. Comprehensive site testing should be completed and approved by the end customer and the Authority Having Jurisdiction (AHJ) to validate the actual coverage, connectivity and service at the site prior to commercial use of the hardware. 240 ½” Coax½” Coax OutdoorCat 6 CableLMR-195 6 ft JumperCable LegendInterconnect Diagram100’6’700/800 Public SafetyLightning ArrestorRoof Mount and PadDC7OmniAntennaBBUTo Main Fire Alarms PanelAnnunciator PanelPWR Cutoff SwitchBackup BatteryAC PowerRoof6’Ground BarQuatra Solo Red½” Coax½” Coax2 Way Splitter½” Coax6’2ndLevelOmniAntenna½” Coax½” Coax2 Way Splitter½” Coax6’6’DC7DC51stLevelDC5Note: The information contained herein is a recommendation of hardware and conceptual placement of hardware based upon the information available. It is not a guarantee of coverage, connectivity, or service for the site or the devices that may be used at the site. A formal iBwave (or other certified RF Propagation modeling software) design is recommended prior to ordering of any materials or installation. Comprehensive site testing should be completed and approved by the end customer and the Authority Having Jurisdiction (AHJ) to validate the actual coverage, connectivity and service at the site prior to commercial use of the hardware. DC5DC5OmniAntenna241 ½” Coax½” Coax OutdoorCat 6 CableLMR-195 6 ft JumperCable LegendInterconnect DiagramOmniAntenna½” Coax6’Lower LevelNote: The information contained herein is a recommendation of hardware and conceptual placement of hardware based upon the information available. It is not a guarantee of coverage, connectivity, or service for the site or the devices that may be used at the site. A formal iBwave (or other certified RF Propagation modeling software) design is recommended prior to ordering of any materials or installation. Comprehensive site testing should be completed and approved by the end customer and the Authority Having Jurisdiction (AHJ) to validate the actual coverage, connectivity and service at the site prior to commercial use of the hardware. DC5DC5242 Budgetary Coverage Predictions and Equipment LocationsLevel 2Note: Conceptual Diagram for rough order of magnitude quoting purposes ONLY. Get Wireless recommends a full RF system design using approved RF modeling software be performed prior to purchase of material and/or system installation. Authority Having Jurisdiction (AHJ) is required to validate the actual coverage, connectivity, and service at the site prior to commercial use of the hardware.243 Budgetary Coverage Predictions and Equipment LocationsLevel 1Note: The information contained herein is a recommendation of hardware and conceptual placement of hardware based upon the information available. It is not a guarantee of coverage, connectivity, or service for the site or the devices that may be used at the site. A formal iBwave (or other certified RF Propagation modeling software) design is recommended prior to ordering of any materials or installation. Comprehensive site testing should be completed and approved by the end customer and the Authority Having Jurisdiction (AHJ) to validate the actual coverage, connectivity and service at the site prior to commercial use of the hardware. 244 Budgetary Coverage Predictions and Equipment LocationsLower LevelNote: The information contained herein is a recommendation of hardware and conceptual placement of hardware based upon the information available. It is not a guarantee of coverage, connectivity, or service for the site or the devices that may be used at the site. A formal iBwave (or other certified RF Propagation modeling software) design is recommended prior to ordering of any materials or installation. Comprehensive site testing should be completed and approved by the end customer and the Authority Having Jurisdiction (AHJ) to validate the actual coverage, connectivity and service at the site prior to commercial use of the hardware. 245 City Council Item June 9, 2025 Item Approve Appliance Purchase for New City Hall and Senior Center File No.Item No: D.18 Agenda Section CONSENT AGENDA Prepared By Laurie Hokkanen, City Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves the purchase of appliances for City Hall and the Senior Center in the amount of 31,716.62 from Warner's Stellian Appliance." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY BACKGROUND The Senior Center has a fully equipped kitchen including an oven, stove, two refrigerators, two dishwashers, and a microwave. The employee break room has two dishwashers, two refrigerators, an ice machine, and four microwaves. There is also a refirgierator in the CCSO office that will be paid for by Carver County. There are several beverage fridges in conference rooms around the building. All items have been price matched or better to Best Buy pricing. The ice machine is price matched to Katom Restaurant Equipment. Competetive quotes are attached. Appliances will be delivered and installed in mid-July. DISCUSSION 246 BUDGET The purchase is included in the FFE budget for the project. RECOMMENDATION Staff reccomends approval of the purchase. ATTACHMENTS Cart - KaTom Restaurant Supply Cart - Best Buy City Of Chanhassen appliance quote WS City of Chanhassen appliance specs 247 Free shipping on qualifying orders over $500 Just sign in! My Cart Enjoy free shipping on orders over $500 - no promo code necessary, just sign in!Sign In Checkout Hoshizaki C-80BAJ-AD 14 7/8"W Nugget Undercounter Ice Machine - 80 lbs/day, Air Cooled, ADA, Gravity Drain, 115v Katom #: 440-C80BAJAD | Sold By: Each Free Shipping Item 1 $4,115.00 Item Total $4,115.00 View Accessories Items Saved For Later To view your items saved for later or start saving, Sign In or Register. Subtotal 1 Item $4,115.00 Shipping Calculate — Est Total (before tax) $4,115.00 Checkout Having trouble? Contact us! Or Use Sign In Cart Ask an Expert | 866-674-0176 Search  1 5/30/25, 12:14 PM Cart - KaTom Restaurant Supply https://www.katom.com/cart.html 1/3248 Cart ID # 351-833-762-89 Live Chat 866.674.0176 You Might Want These Too! Hoshizaki Winco Hoshizaki True Refrigeration Hoshizaki 5/30/25, 12:14 PM Cart - KaTom Restaurant Supply https://www.katom.com/cart.html 2/3249 Contact Us About KaTom Our Store Careers Track Order Returns Financing Policies Shop By Brand Trending Products Design + Build Learning Center ©2001-2025 KaTom Restaurant Supply, Inc. All rights reserved. | 05/30/2025 5:13pm | 305 KaTom Drive, Kodak, TN 37764 | 866.674.0176 | Sitemap Recently Viewed Products 14 7/8"W Nugget Undercounter Ice Machine - 92 lbs/day, Air… 1/2 Half Size Bun / Sheet Pan - 18" x 13", 20 gauge Aluminum 14 7/8"W Top Hat Undercounter Ice Machine - 55 lbs/day, Air… 24" W Undercounter Refrigerator w/ (1) Section & (1) Right Hinge… Ice Bin Drain Pump Assem Hoshizaki AM-50BAJ 5/30/25, 12:14 PM Cart - KaTom Restaurant Supply https://www.katom.com/cart.html 3/3250 Appliances Memorial Day Sale Ends 6/4.Shop now Your Cart We’ve applied business pricing or the sale price - whichever is better. Frigidaire - 30 inches - Convertible - Under cabinet Range Hood - Stainless Steel Pickup at Eden Prairie Ready for pickup Wed, Jun 18 Delivery to   Delivery as soon as Sun, Jun 15 Delivery + Installation as soon as Sun, Jun 15 1 Max: 15 Save for later Remove $349.99 Save $150 Comp. Value: $499.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services Asko - 24" Dishwasher with Front Control, Pocket Handle, Stainless Steel tub, 3 Racks, 42 dBA, ADA Delivery to   Delivery as soon as Sat, Jun 21 Delivery + Installation as soon as Sat, Jun 21 1 Max: 15 Save for later Remove $999.00 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Dishwasher Install Remove $179.99 Essential Add-ons Smart Choice - Universal 6' Deluxe Dishwasher Install Kit - Multi $34.99 LG - Counter-Depth MAX 26.5 Cu. Ft. French Door Smart Refrigerator with Internal Water Dispenser - Stainless Steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Available Today at a store 5 miles away Delivery to   Delivery as soon as Mon, Jun 2 Delivery + Installation as soon as Mon, Jun 2 1 Max: 13 Save for later Remove $1,599.99 Save $1,600 Comp. Value: $3,199.99 Special Offers We found offers available based on items in your cart!See all 55317 55317 55317 55317 Order Summary Subtotal $28,782.84 Savings -$6,969.00 Delivery $29.99 Estimated Sales Tax $1,830.77 Road Improvement and Food Delivery Fee $0.50 Total $23,675.10 Checkout Apply today, shop today. Show me how > 10% back in rewards on your irst day of purchases when you are approved for the My Best Buy® Credit Card. or $986.47/month* suggested monthly payments with 24 month inancing on this purchase of $23,675.10 Looking for a lease to own option? Enjoy the tech you want today.Learn more > Buying a gift for someone special? Gift options can be added in checkout. Learn more > Memorial Day Special Offer Use codes save10 on $499.99+ or save20 on $2499.99+ at checkout on select appliances. See more Expires on 06/04/2025 Yardbird Best Buy Outlet Best Buy Business Shop with an Expert Recently Viewed Saved ItemsTop Deals Deal of the Day Yes, Best Buy Sells That My Best Buy Memberships Account Order Status Menu Search Best Buy Cart17Eden Prairie 5/30/25, 12:05 PM Cart - Best Buy https://www.bestbuy.com/cart 1/6251 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services Café - 30" Built-In Single Electric Convection Wall Oven, Customizable - Stainless steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Closest store with availability is 194 miles away Delivery to   Delivery as soon as Thu, Jun 5 Delivery + Installation as soon as Thu, Jun 5 1 Max: 15 Save for later Remove $2,899.99 Save $430 Comp. Value: $3,329.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services LG - Counter-Depth MAX 26.5 Cu. Ft. French Door Smart Refrigerator with Internal Water Dispenser - Stainless Steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Available Today at a store 5 miles away Delivery to   Delivery as soon as Mon, Jun 2 Delivery + Installation as soon as Mon, Jun 2 1 Max: 13 Save for later Remove $1,599.99 Save $1,600 Comp. Value: $3,199.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services LG - Counter-Depth MAX 26.5 Cu. Ft. French Door Smart Refrigerator with Internal Water Dispenser - Stainless Steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Available Today at a store 5 miles away Delivery to   Delivery as soon as Mon, Jun 2 Delivery + Installation as soon as Mon, Jun 2 1 Max: 13 Save for later Remove $1,599.99 Save $1,600 Comp. Value: $3,199.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services 55317 55317 55317 55317 55317 55317 55317 5/30/25, 12:05 PM Cart - Best Buy https://www.bestbuy.com/cart 2/6252 LG - 25.5 Cu. Ft. Bottom-Freezer Refrigerator with Ice Maker - PrintProof Stainless Steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Available Today at a store 5 miles away Delivery to   Delivery as soon as Mon, Jun 2 Delivery + Installation as soon as Mon, Jun 2 1 Max: 2 Save for later Remove $1,599.99 Save $600 Comp. Value: $2,199.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services Bosch - 800 Series 4.6 Cu. Ft. Slide-In Electric Convection Range with Self- Cleaning and Warming Drawer - Stainless steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Delivery to   Delivery as soon as Thu, Jun 5 Delivery + Installation as soon as Thu, Jun 5 1 Max: 10 Save for later Remove $2,399.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services LG - 25.5 Cu. Ft. Bottom-Freezer Refrigerator with Ice Maker - PrintProof Stainless Steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Available Today at a store 5 miles away Delivery to   Delivery as soon as Mon, Jun 2 Delivery + Installation as soon as Mon, Jun 2 1 Max: 2 Save for later Remove $1,599.99 Save $600 Comp. Value: $2,199.99 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services Zephyr - Presrv 24 in. 7-Bottle and 112 Can ADA Single Zone Reversible Door Beverage Cooler - Stainless Steel Pickup at Eden Prairie Ready for pickup Wed, Jun 25 Delivery to   Delivery as soon as Tue, Jun 17 1 Max: 11 Save for later Remove $1,249.99 Protection Plans Standard Geek Squad Protection See All Plans 55317 55317 55317 55317 55317 55317 55317 5/30/25, 12:05 PM Cart - Best Buy https://www.bestbuy.com/cart 3/6253 Zephyr - Presrv 24 in. 7-Bottle and 112 Can ADA Single Zone Reversible Door Beverage Cooler - Stainless Steel Pickup at Eden Prairie Ready for pickup Wed, Jun 25 Delivery to   Delivery as soon as Tue, Jun 17 1 Max: 11 Save for later Remove $1,249.99 Protection Plans Standard Geek Squad Protection See All Plans Zephyr - Presrv 24 in. 7-Bottle and 112 Can ADA Single Zone Reversible Door Beverage Cooler - Stainless Steel Pickup at Eden Prairie Ready for pickup Wed, Jun 25 Delivery to   Delivery as soon as Tue, Jun 17 1 Max: 11 Save for later Remove $1,249.99 Protection Plans Standard Geek Squad Protection See All Plans Zephyr - Presrv 24 in. 7-Bottle and 112 Can ADA Single Zone Reversible Door Beverage Cooler - Stainless Steel Pickup at Eden Prairie Ready for pickup Wed, Jun 25 Delivery to   Delivery as soon as Tue, Jun 17 1 Max: 11 Save for later Remove $1,249.99 Protection Plans Standard Geek Squad Protection See All Plans Zephyr - Presrv 24 in. 7-Bottle and 112 Can ADA Single Zone Reversible Door Beverage Cooler - Stainless Steel Pickup at Eden Prairie Ready for pickup Wed, Jun 25 Delivery to   Delivery as soon as Tue, Jun 17 1 Max: 11 Save for later Remove $1,249.99 Protection Plans Standard Geek Squad Protection See All Plans LG - 20.2 Cu. Ft. Top-Freezer Refrigerator - Stainless steel Pickup at Eden Prairie Ready for pickup Sun, Jun 8 Available Today at a store 5 miles away Delivery to   Delivery as soon as Mon, Jun 2 Delivery + Installation as soon as Mon, Jun 2 1 Max: 3 Save for later Remove $699.99 Save $389 Comp. Value: $1,088.99 Included 2 items Show items 55317 55317 55317 55317 55317 5/30/25, 12:05 PM Cart - Best Buy https://www.bestbuy.com/cart 4/6254 Protection Plans Standard Geek Squad Protection See All Plans Professional Services Installation & setup services are available in See All Services Compare items from cart Saved Items Manage your saved items People also bought Get 2.5 points per $1 spent (5% back in rewards) on qualifying Best Buy® purchases when you choose Standard Credit with your Best Buy Credit Card. Points are not awarded on promotional credit purchases. Some products purchased at Paciic Sales® Kitchen & Home Stores are 55317 Panasonic - 1.2 Cu. Ft. 1200- Watt Countertop Microwa… (159) $169.99 $219.99 Add to Cart LG - 25.5 Cu. Ft. Bottom- Freezer Refrigerator with Ice Maker - PrintProof Stainless Steel Add to Compare LG - 20.2 Cu. Ft. Top-Freezer Refrigerator - Stainless steel Add to Compare Café - 1.7 Cu. Ft. Convection Built-In Microwave with Sens… Not yet reviewed $2,028.34 Save $100 Add to Cart Café - 1.7 Cu. Ft. Convection Built-In Microwave with 120V… (2) $2,830.16 Save $100 Add to Cart Café - 36" Gas Cooktop Customizable - Stainles (15) $1,860.41 Save $100 Add to Cart 5/30/25, 12:05 PM Cart - Best Buy https://www.bestbuy.com/cart 5/6255 not eligible to get My Best Buy® rewards. Does not include tax. Additional limitations may apply. Subject to My Best Buy™ Program Terms. 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Sign Up Best Buy app Learn more › How was your experience?Give feedback about our website Mobile Site Best Buy Canada Accessibility Terms & Conditions Privacy Interest- Based Ads State Privacy Rights Health Data Privacy Do Not Sell/Share My Personal Information Limit Use of My Sensitive Personal Information Targeted Advertising Opt Out CA Supply Chain Transparency Act In-store pricing may vary. Prices and offers are subject to change. © 2025 Best Buy. All rights reserved. BEST BUY, the BEST BUY logo, the tag design, and MY BEST BUY are trademarks of Best Buy and its ailiated companies. Enter email address 5/30/25, 12:05 PM Cart - Best Buy https://www.bestbuy.com/cart 6/6256 257 258 259 260 261 City of Chanhassen 7700 Market Blvd Chanhassen, MN 55317-8363 United States 262 Slim Spec Package Note about page numbers: Because the original manufacturer's documents are not altered in any way, the page numbers displayed on the page may not correspond to the page number within this package. All specifications are intended for initial planning purposes only. Manufacturers reserve the right to change specifications at any time without notice. Always consult the installation instructions found on the manufacturer’s website or included with the appliances before installation. City of Chanhassen 7700 Market Blvd Chanhassen, MN 55317-8363 United States Warners' Stellian warnersstellian.com Scott Ledin 651-645-8951 QUOTE QTE-189377 Version 1.1 Wed, May 28, 2025 9:46 AM CDT enterprise.steelcod.com/sp/wrns/AKHEI3MC Contents Page no. DBI564IS 4 Asko Dishwasher Built-in undercounter dishwasher FCVW3062AS 5 Frigidaire Ventilation Undercabinet 30" Ventilation Hood LTCS20020S 6 LG Refrigeration Top Mount Refrigerator LRDCS2603S 7 LG Refrigeration Bottom Freezer Refrigerator CTS70DP2NS1 8 Cafe Wall Oven 30" Smart Single Wall Oven with Convection HEI8056U 9 263 Slim Spec Package Note about page numbers: Because the original manufacturer's documents are not altered in any way, the page numbers displayed on the page may not correspond to the page number within this package. All specifications are intended for initial planning purposes only. Manufacturers reserve the right to change specifications at any time without notice. Always consult the installation instructions found on the manufacturer’s website or included with the appliances before installation. Bosch Range 30" 800 Series Electric Slide-in Range - Stainless Steel PRB24C01AS-ADA 10 Zephyr Refrigeration 24" ADA Single Zone Beverage Cooler GNE27JYMFS 11 GE Refrigeration GE ENERGY STAR 27.0 Cu. Ft. Fingerprint Resistant French-Door Refrigerator C80BAJAD 12 Hoshizaki Ice Maker 264 265 266 267 268 269 270 271 Model#: GNE27JYMFS GE® ENERGY STAR® 27.0 Cu. Ft. Fingerprint Resistant French-Door Refrigerator Approx Dimensions (HxDxW): 69 7/8 in X 35 7/8 in X 35 3/4 in •Fingerprint resistant stainless - Easily wipe away smudges and fingerprints for a look that's always sparkling clean •27.0 cu. ft. capacity - Easily store large or bulk food items with three full-width shelves and large capacity •Internal water dispenser - Delivers filtered water with one touch •Factory-installed icemaker with water filtration system - Refrigerator comes ready to automatically create filtered ice •LED lighting - Find exactly what you’ve been looking for under crisp, clear lighting •Spill-proof shelves - A variety of shelf configurations provide additional options for food storage •Two humidity-controlled drawers and full-width drawer - Create the right environment for keeping fruits and vegetables fresh, while easily storing wider items like a party platter or a sheet cake Warranty Information: •Parts Warranty : Limited 1-year entire appliance •Labor Warranty : Limited 1-year entire appliance •Warranty Notes : See written warranty for full details Also Available in: GNE27JGMWW - White GNE27JMMES - Fingerprint Resistant Slate GNE27JGMBB - Black Date Created: 04/29/20272 273 City Council Item June 9, 2025 Item Approve Temporary Liquor License, Hackamore Brewing, SummerFest on June 21, 2025 File No.Item No: D.19 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves the request from Hackamore Brewing, for a temporary liquor license for their SummerFest event on June 21, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY Hackamore Brewing has submitted an application for a temporary liquor license for their SummerFest event on June 21, 2025. The event will be held at 18651 Lake Drive East. Liquor liability insurance has been provided for the event. This event will expand their liquor license to include portions of the parking lot. Hackamore must provide a map of the area where alcohol will be served and also provide a Certificate of Insurance expanding the insurance to the outdoor space. Hackamore Brewing has provided the needed documentation. BACKGROUND Hackamore Brewing has applied for a temporary event permit for their SummerFest. DISCUSSION 274 BUDGET RECOMMENDATION Staff recommends approval the request from Hackamore Brewing, for a temporary liquor license for SummerFest on June 21, 2025 ATTACHMENTS SummerFest 2025 Application Location Map Hackamore Certificate of Insuance 275 1 of 4 CITY OF CHANHASSEN TEMPORARY EVENT PERMIT APPLICATION FORM SECTION TWO: APPLICANT INFORMATION SECTION THREE: PROPERTY OWNER INFORMATION SECTION ONE: EVENT TYPE Applicant Contact: On-Site Contact: Name: Name: Name: Title: Title: Title: Producing Business/ Organization Name: Seasonal Sales ($50)Temporary Outdoor Event ($50)Special Event ($100) Race Addendum (+$50) Seasonal Sales and Temporary Outdoor Event Permits must be submitted at least 10 days prior to the event. Special Event Permits must be submitted at least 60 days prior to the event. Address: Address: (Street, City, State, & Zip) (Street, City, State, & Zip) Phone: Phone: Phone: Cell: Cell: Cell: Email: Email: Email: Business/Organization Website: 276 2 of 4 TEMPORARY EVENT PERMIT APPLICATION FORM SECTION FOUR: EVENT INFORMATION Event Title: Event Location: Event Description: Event Date(s): Provisions for parking and security: Number participants/attendees:Number of Employees/Workers: Event Time(s): Event Subtype: Will there be sound amplification equipment? Will merchandise be sold at the event? Narrative Required: (only for Special Event Permit) Will there be signage at the event? Race/Walk (complete and attach race addendum form) If yes, attach additional permit. If yes, please describe: If yes, attach additional permit. Festival No No No Sidewalk sales Promotional event Seasonal produce Christmas TreesConcert Yes Yes Yes Temporary food & beverage sales Other: (Street, City, State, & Zip) Please provide a narrative including the following information: »Description of event »Parking arrangements »Security »Potential impact on public safety, traffic, and other services including proposed mitigation strategy 277 3 of 4 TEMPORARY EVENT PERMIT APPLICATION FORM SECTION FOUR: EVENT INFORMATION (CONTINUED) Equipment/Set-Up Insurance Required: Staging/Scaffolding Signage # (include size and location on map) Tents/Canopies # (include size and location on map) Tent Size(s): Lighting Statues or structures Portable restrooms Select all that apply (show all equipment on your attached map). Proof of liability insurance must be provided at city discretion. Please list the outside companies/vendors that you are using for any of the checked boxes above. A complete list of vendors must be submitted prior to your event. Map Required: »Surrounding street names »Directional arrows »Twenty foot (20’) fire lanes »Fencing/Barriers »Street closure points »Barricades »Bleachers »Booths »Generators »Canopies/Tents »Cooking Areas »Generators »Vehicles »Beer gardens »Number and dimension of entrances/exits »Start/Finish lines » Routes with directional arrows »Fire extinguisher locations »Safety and First Aid stations »Parking areas »Special lighting »Trash/Recycling containers Maps are required for the overall event layout as well as any separately fenced areas such as beer/wine gar- dens or contained areas as part of a parade/march route. As a general rule, maps must include the following: SECTION FIVE: FOOD Will food be served at the event? Will food be prepared off-site but served on-site? Will any of the following appliances be used? (Check all that apply) Will food be prepared on-site? Will food be grilled on-site? NOTE: If using any of the cooking methods listed above other than warming ovens, Chanhassen Fire Department Policy #50-2005 Temporary Assemblies and Tents must be followed. If no, skip to next section. If yes, select one: *Size of LP gas tank: No No No Deep fat fryer Warming oven Corn roaster Other: No LP Gas* .lbs Yes Yes Yes Gas griddle (flat top) Yes Charcoal 278 4 of 4 TEMPORARY EVENT PERMIT APPLICATION FORM SECTION SEVEN: NOTICE AND SIGNATURE Applicant: Property Owner: I have familiarized myself with the Chanhassen City Code Chapter 20-964 and subsequent ordinance amendments pertaining thereto, and will abide by the provisions contained therein. I declare that the information I have provided on this application is truthful and I understand that falsification of answers on this application will result in denial of the application. I authorize the City of Chanhassen to investigate and make whatever inquiries are necessary to verify the information provided. Signature: Signature: Date: Date: SECTION SIX: ALCOHOL Will alcohol be served at the event? Is a non-profit organization providing the alcohol services? The sale and service of alcoholic beverages are subject to City of Chanhassen regulations, licensing, and permit requirements. NOTE: Alcohol can only be provided and served by a restaurant holding an on-sale intoxicating liquor license issued by any municipality that also holds a caterer’s permit (MN Statute 340A.404, Subd. 12). If no, indicate the name of the caterer: If yes, indicate the name of the non-profit organization: No No Yes Yes Complete and submit this from and any supplemental documents online on the city’s BS&A portal. A guide is available to help you with the submission process. Payment will be requested after permit review and approval. 279 280 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME: CONTACT A/C, No): FAX E-MAILADDRESS: PRODUCER A/C, No, Ext): PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: Per accident) Ea accident) N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOSONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY) POLICY EXP( MM/DD/YYYY) POLICYEFFPOLICYNUMBERTYPEOFINSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE AGGREGATE OCCUR CLAIMS-MADE DED RETENTION $ PRODUCTS - COMP/OP AGG GENERAL AGGREGATE PERSONAL & ADV INJURY MED EXP (Any one person) EACH OCCURRENCE DAMAGE TO RENTED $ PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY 3/4/2025 Miller-Hartwig Insurance PO Box 1177 Lakeville MN 55044 Josh Havlik 952-469-5502 952-469-1881 JHavlik@millerhartwig.com Cincinnati Insurance Co 10677 HACKBRE-01 SFM Mutual Insurance Co11347HackamoreBrewingCoLLC 18651 Lake Dr E Chanhassen MN 55317 407121252 A X 1,000,000 X 500,000 5,000 1,000,000 2,000,000 X Y Y ETD 0658673 7/1/2024 7/1/2025 2,000,000 A 1,000,000 X X ETD 0658673 7/1/2024 7/1/2025 A X X 4,000,000YETD06586737/1/2024Y 7/1/2025 B X189468.201 2/1/2025 2/1/2026 1,000,000 1,000,000 1,000,000 A Liquor Liability ETD 0658673 7/1/2024 7/1/2025 occ/agg 1000000/2000000 Brewery and Taproom-18651 Lake Dr E Chanhassen MN 55317 Liquor Liability is continuous until cancelled meaning notice will be given for any cancellation,non-renewal,failure to pick up a renewal,or any other policy interruption.Liquor liability coverage is not location specific and covers any patios and off-premises events provided a valid liquor license is in-force.Additional Insured status,waiver,and primary non-contributory language are extended by endorsement "as required by written contract or agreement"to specified relationships.Forms are available upon request. City of Chanhassen 7700 Market Blvd PO Box 147 Chanhassen 55317 281 City Council Item June 9, 2025 Item Resolution 2025-XX: PERA Police and Fire Resolution File No.Item No: D.20 Agenda Section CONSENT AGENDA Prepared By Andrew Heger, Fire Chief Reviewed By SUGGESTED ACTION Approve resolution 2025-XX authorizing part time firefighters' membership into the PERA Police & Fire retirement plan. Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY BACKGROUND The City of Chanhassen has historically relied on a combination of full-time staff and part-time, paid- on call (POC) firefighters to meet its fire protection and emergency response needs. This staffing model has been in place for the past several years and has undergone adjustments to address evolving community demands, recruitment challenges, and retention concerns. The paid-on call model is valued for its cost efficiency and its ability to foster community engagement, but it has faced operational challenges, particularly in ensuring consistent response coverage during varying times of day and week. Recent discussions have focused on maintaining the viability of the paid-on call model to maintain reliable service levels. Under Minnesota Statutes Section 353.64, part-time firefighters employed by governmental subdivisions may be eligible for membership in the Public Employees Police and Fire Retirement Plan 282 (PERA) if they meet specific criteria. These criteria include licensure by the Board of Firefighter Training and Education under Section 299N.05 and engagement in hazardous firefighting activities. The statute allows governing bodies to declare coverage for non-full-time firefighters who devote less than 50% of their time to non-fire service duties within the same department. This legal framework provides the basis for extending retirement benefits to part-time firefighters, recognizing their contributions to public safety and their exposure to hazardous conditions. The City of Chanhassen’s fire department staffing plan aligns with broader strategic priorities, including operational excellence and community safety. The department currently employs 24 part-time POC firefighters. Good standing requirements for POC firefighters include minimum duty shifts and general alarm responses, which contribute to pension eligibility under the relief association guidelines. The proposed inclusion of part-time firefighters in PERA reflects the city’s commitment to providing equitable benefits and ensuring long-term sustainability in firefighter recruitment and retention. DISCUSSION BUDGET The initial hiring plan for the inclusion of part-time firefighters into the Public Employees Police and Fire Retirement Plan (PERA) is expected to have minimal budgetary impact due to the limited scope of the program. Specifically, the City of Chanhassen anticipates hiring only two to three part-time firefighters under this initiative. This measured approach ensures that the financial obligations associated with employer contributions to PERA remain manageable within the existing budget framework. Under Minnesota Statutes Chapter 353, the employer contribution rate for the Police and Fire Plan is set at 17.70% of the employee’s annual covered salary. This statutory rate is non-negotiable and applies uniformly to all participating employers. Given the limited number of hires and the part-time nature of their roles, the total salary base subject to contributions will be relatively low, further mitigating the financial impact on the city’s budget. It is also important to note that the inclusion of part-time firefighters in PERA aligns with the city’s broader commitment to ensuring equitable benefits for employees engaged in hazardous work. This policy decision reflects compliance with Minnesota Statutes Section 353.64, which emphasizes the importance of providing retirement benefits to those exposed to hazardous conditions. By limiting the initial hiring to a small number of employees, the city can evaluate the program’s operational and financial implications before considering any potential expansion. In conclusion, the anticipated budgetary impact of this initiative is minimal, supported by the limited number of hires, the statutory contribution framework, and the city’s robust financial position. This approach allows the city to responsibly implement the program while maintaining fiscal prudence. RECOMMENDATION Staff recommends the Chanhassen City Council approve Resolution 2025-XX Authorizing Part-time Firefighters Membership into PERA Police & Fire Retirement Plan. ATTACHMENTS 283 Resolution Police and Fire PERA 284 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 9th, 2025 RESOLUTION NO:2025-XX MOTION BY: SECONDED BY: A RESOLUTION Authorizing Part-time Firefighters Membership into PERA Police & Fire Retirement Plan WHEREAS, the policy of the State of Minnesota as declared in Minnesota Statutes 353.63 is to give special consideration to employees who perform hazardous work and devote their time and skills to protecting the property and personal safety of others; and WHEREAS, Minnesota Statutes Section 353.64 permits the governing body of a governmental subdivision to declare coverage in the Public Employees Police and Fire plan for a non-full-time firefighter who is employed in a fire department, is required by the employing governmental subdivision to be and is licensed by the Board of Firefighter Training and Education under section 299N.05, and who is engaged in or exposed to hazardous conditions resulting from firefighting or fire prevention, suppression, or investigation and is assigned less than 50 percent of the time to perform employment duties in the same department that are not within the scope of fire service in Minnesota Statutes Section 353.64, Subdivision 1. NOW, THEREFORE, BE IT RESOLVED that the City Council, of the City of Chanhassen hereby declares that the position of part-time firefighter, in the Chanhassen Fire Department satisfies the requirements of a full-time firefighter other than the requirement of full- time employment, and is assigned less than 50 percent of the time to perform employment duties in the same department that are not within the scope of fire service in Minnesota Statutes Section 353.64, Subdivision 1. BE IT FURTHER RESOLVED that this governmental unit will provide a copy of this resolution to PERA each time it provides Police and Fire membership to a person who is hired to said part-time position and will indicate the name of the employee eligible for such coverage. 285 2 BE IT FURTHER RESOLVED that the named employee is a member of the Public Employees Police and Fire Plan effective the date of the employee’s initial Police and Fire Plan salary deduction by the governmental subdivision. PASSED AND ADOPTED by the Chanhassen City Council this 9th day of June, 2025. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 286 City Council Item June 9, 2025 Item Nick Gardino Citizen Action Request File No.Item No: E.1 Agenda Section VISITOR PRESENTATIONS Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Nick Gardino Citizen Action Request 287 Complete this form and submit it prior to the City Council meeting date you wish to present your request. The City of Chanhassen invites citizens to submit a request in their native or preferred language. Upon doing so, the city will utilize its resources and do everything in its power to translate the request appropriately. Select City Council Meeting date you would like to attend: 06/09/2025 In 2024, the Chanhassen City Council meets on the second and fourth Mondays of each month. Printable Meeting Calendar View and/or print this calendar to assist with determining when city council meetings are held in order to make your date selection above. Resident Information * Name Nick Gardino * Address * Phone * Email Council Action Requested * Provide a brief description of the action you are requesting from the City Council. Request the city establish an ordinance to control connections from Chanhassen to adjacent cities (utility and streets) to manage development on our border and preserve the safety and welfare of city residents Summary of Information * Provide a narrative of the request including need, costs, timetable, background, etc. The city currently lacks any ordinance dealing with connections of utility and streets to neighboring cities preventing the city from hearing development concerns that affect Chanhassen- specifically development along city borders. The intent of existing city code clearly states the city intends to control development and provide for the safety and welfare of residents, but the lack of an ordinance controlling development along our border prevents the city from protecting residents from administrative decisions that in fact delop our border without notice and review opportunity for residents. The city should enact an ordinance requiring public hearing for any new connections of utilities or streets that link Chanhassen to other cities. For example - a neighboring city seeking to develop land on our border may request city services at a burden to Chanhassen to develop land and benefit its tax base outside the purview and for no benefit to the city. Adopt an ordinance requiring hearings What Happens Next? Immediately upon submission of this form, staff will be notified by email and will provide copies to the City Council prior to the selected meeting date. Contact Questions? Contact City Clerk Jenny Potter at 952-227-1107 or by email. Page | 1 288 City Council Item June 9, 2025 Item State of the Library Presentation File No.Item No: E.2 Agenda Section VISITOR PRESENTATIONS Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY Patrick Jones, Chanhassen and Victoria Library Branch Manager will give the State of the Library Presentation. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 289 ATTACHMENTS 290 City Council Item June 9, 2025 Item Resolution 2025-XX: Frontier Trail Association - Easement Agreement and Easement Vacation File No.ENG 25-01 and Vacation 25-04 Item No: F.1 Agenda Section PUBLIC HEARINGS Prepared By Mackenze Grunig, Project Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves an agreement with the Frontier Trail Association and approves a resolution authorizing the vacation of the public drainage and utility easements required as part of the agreement in conjunction with the 2025 Street Improvement Project." Motion Type 4/5 Vote Strategic Priority Asset Management SUMMARY Approving an agreement and vacating existing public drainage and utility easements required as part of the 2025 Street Improvement Project. The easement agreement also includes a reconfiguration of an existing sanitary sewer easement located within the property. The easement vacation action requires a Public Hearing which has been appropriately noticed. BACKGROUND The city is undertaking a street improvement project on Frontier Trail which affects the Frontier Trail Association (FTA) property. The FTA property was assessed with the project the same flat rate as the rest of the assessable properties. The work on the FTA property primarily consists of constructing a stormwater filtration basin, which is needed as part of the stormwater permitting for the project. There 291 is an existing stormwater easement established back in 1977, however there is ambiguity in the language on what storm water scope of work can be done within the easement. In an effort to "clean up" a few items, an agreement was needed. The agreement addresses three things: 1. Allows the city to construct the stormwater BMP, and establishes the appropriate public drainage and utility easement 2. Reconfigures an existing sanitary sewer easement to properly align it with the actual sanitary sewer forcemain located on the property 3. Resolves the formal objection to the assessment on the property DISCUSSION The agreement essentially washes out the cost for the city to properly encumber the proposed stormwater improvements and the assessment levied against the FTA property. The city will deliver payment to the FTA upon approval of the agreement, and the FTA will then pay the assessment levied against their property. The agreement and easement documents were prepared and reviewed by the City Attorney's office. BUDGET N/A RECOMMENDATION Staff recommends approval of the agreement, and the vacation of the public drainage and utility easements. ATTACHMENTS Resolution 2025-XX Resolution Vacating a Public Drainage Utility Easements NOTICE OF PUBLIC HEARING FOR VACATION (PAPER) Frontier Trail NOTICE OF PUBLIC HEARING FOR VACATION (MAIL) Frontier Trail Auditor's Subdivision Number 2 Plat Grant of Permanent Easement D&U Frontier Trail Agreement to Convey Easement and Assessment Frontier Trail Association 292 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 9, 2025 RESOLUTION NO: 2025-XX MOTION BY: SECONDED BY: RESOLUTION VACATING DRAINAGE AND UTILITY EASEMENTS OVER LOT 12, AUDITOR’S SUBDIVISION NUMBER 2, CARVER COUNTY, MINNESOTA WHEREAS, The City of Chanhassen (“City”), is requesting the vacation of all existing easements within the existing area that is platted as AUDITOR’S SUBDIVISION NUMBER 2, Lot 12; WHEREAS, parcels of land that will be part of this plat is legally described as Lot 12, within the Auditor’s Subdivision Number 2 Plat, Carver County, Minnesota: (“Easement”); WHEREAS, pursuant to Minnesota Statutes § 412.851 the City Council of the City of Chanhassen has conducted a hearing preceded by the statutorily required two (2) weeks published and posted notice and mailed notice to the abutting property owners, to consider the vacation of the Easement. WHEREAS, New easements are being dedicated where necessary to replace the vacated portions. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Chanhassen City Council: 1. The Easement is hereby vacated conditioned upon the execution and recording of new easements via the agreement to grant easement between the City and the Frontier Trail Association. 2. The vacation shall not affect the authority of any person, corporation, or municipality owning or controlling the electric or telephone poles and lines, gas lines, sanitary and storm sewer lines, water pipes, mains, hydrants, and natural drainage areas thereon or thereunder, to continue maintain the same or to enter upon such way or portion thereof vacated to maintain, repair, replace, remove, or otherwise attend thereof. 3. The City Clerk shall transmit a certified copy of this Resolution to the County Auditor and County Recorder subject to the condition in Paragraph 1 of this Resolution. 293 2 PASSED AND ADOPTED by the Chanhassen City Council this 9th day of June, 2025. ATTEST: ___________________________________ ___________________________________ Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 294 NOTICE OF PUBLIC HEARING CITY OF CHANHASSEN COUNTY OF CARVER AND COUNTY OF HENNEPIN STATE OF MINNESOTA CITY COUNCIL MEETING June 9, 2025 7:00 p.m. CHANHASSEN CITY HALL 7700 Market Boulevard, Chanhassen, MN 55317 NOTICE IS HEREBY GIVEN that the City Council for the City of Chanhassen will hold a public hearing on Monday, June 9, 2025, at 7:00 p.m., in the Council Chambers at Chanhassen City Hall, 7700 Market Boulevard, pursuant to Minnesota Statutes § 412.851 to consider the vacation of drainage and utility easements dedicated in Lot 12, Auditor’s Subdivision No. 2, Carver County, Minnesota, according to the recorded plat thereof, Auditor’s Subd #2, Carver County, Minnesota. All interested parties are encouraged to attend this public hearing and express their opinions with respect to this proposal. If you have any questions, please contact: Mackenze Grunig, Project Engineer Phone: (952) 227-1165 (Publish in the Sun Sailor on May 29 & June 5, 2025) 295 NOTICE OF PUBLIC HEARING CITY OF CHANHASSEN COUNTY OF CARVER AND COUNTY OF HENNEPIN STATE OF MINNESOTA CITY COUNCIL MEETING June 9, 2025 7:00 p.m. CHANHASSEN CITY HALL 7700 Market Boulevard, Chanhassen, MN 55317 NOTICE IS HEREBY GIVEN that the City Council for the City of Chanhassen will hold a public hearing on Monday, June 9, 2025, at 7:00 p.m., in the Council Chambers at Chanhassen City Hall, 7700 Market Boulevard, pursuant to Minnesota Statutes § 412.851 to consider the vacation of all drainage and utility easements dedicated in Lot 12, Auditor’s Subdivision No. 2, Carver County, Minnesota, according to the recorded plat thereof Auditor’s Subd #2. All interested parties are encouraged to attend this public hearing and express their opinions with respect to this proposal. If you have any questions, please contact: Mackenze Grunig, Project Engineer Phone: (952) 227-1165 296 297 1 235481v9 (reserved for recording information) GRANT OF PERMANENT EASEMENTS THIS GRANT OF PERMANENT EASEMENTS (“Easement Agreement”) is made this _____ day of _________________, 2025 (“Effective Date”), by and between the CITY OF CHANHASSEN, Minnesota municipal corporation (“City”), and FRONTIER TRAIL ASSOCIATION, a Minnesota non-profit corporation ("Grantor"). RECITALS WHEREAS, Grantor is the owner of certain real property within the City of Chanhassen, Minnesota legally described as follows: Lot Twelve (12), Auditor's Subdivision Number Two (2), according to the map or plat thereof on file and of record, Office of the Register of Deeds, in and for Carver County, Minnesota. (“Grantor Property”); WHEREAS, Grantor Property is a non-residential lot used by the members of the Grantor for access from Frontier Trail to Lotus Lake and includes a gravel driveway for such access as depicted in Exhibit A attached hereto (“Gravel Driveway”); WHEREAS, Grantor or its predecessors previously granted the following easements to the City over the Grantor Property: (i) Easement dated March 14, 1976, recorded in Carver County Office of the Registrar of Deeds, Book 126 of Deeds, Page 142 on March 16, 1976 as Document No. 28404; (ii) Easement dated September 11, 1978, recorded in Carver County Office of the Registrar of Deeds, Book 144 of Deeds, Page 169 on March 16, 1978 as Document No. 39690; (iii) Easement dated September 11, 1978, recorded in Carver County Book 144 of Deeds, Page 173 on March 16, 1978 as Document No. 39691; (“City Easements”); 298 2 235481v9 WHEREAS, the City has requested that new easements be provided by the Association to facilitate storm drainage improvements for the 2025 City Pavement Rehabilitation, Project 25-01 (“Project”) and a reconfiguration of the easement for the existing public sanitary sewer within the Grantor Property; WHEREAS, the Association is willing to grant the requested easements upon the conditions provided herein, provided that the City will process and approve vacations for all existing City Easements, which will be replaced by this Grant of Easements; NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, Grantor and the City agree as follows: 1. Recitals Incorporated. The recitals set forth above are hereby incorporated into and made a part of this Agreement. 2. Grant of Public Drainage Easement. Grantor hereby grants to the City forever, a permanent easement for public drainage purposes over, across, on, under, and through land situated within the County of Carver, State of Minnesota, as legally described on the attached Exhibit "B" and depicted on Exhibit “C” (“the Drainage Easement Premises”); provided, however, that the Drainage Easement Premises is limited to the area south of the existing Gravel Driveway. This grant of easement shall include the rights of the City, its contractors, agents, servants, and assigns, to enter upon the Drainage Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain said public drainage systems over, across, on, under, and through the Drainage Easement Premises, together with the right to grade, level, fill, drain, and excavate the Drainage Easement Premises, and the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the location, construction, and maintenance of said drainage systems. City work within the Drainage Easement Premises after the completion of the Project shall generally conform to the landscaping buffer planting standards set forth on Exhibit G, to the extent that it is applicable to the work to be performed by the City. The City will construct the Project in accordance with the construction plans for the portion of the Project on the Property as shown on Exhibit F attached hereto (“Construction Plans”) and will install the additional landscaping as described in the landscape plan attached hereto as Exhibit G (“Landscape Plan”). The drainage basin shown on the Construction Plans shall be installed as a “dry pond” which will drain dry over a period of time following a rain event and is designed to accommodate simulated runoff from a 100-year storm event based on current engineering calculations. 3. Grant of Sanitary Sewer Easement. Grantor hereby grants to the City forever, a permanent easement for public sanitary sewer purposes over, across, on, under, and through land situated within the County of Carver, State of Minnesota, as legally described on the attached Exhibit "D" and depicted on Exhibit “E” (“the Utility Easement Premises”). This grant of easement shall include the rights of the City, its contractors, agents, servants, and assigns, to enter upon the Utility Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain said public drainage systems over, across, on, under, and through the Utility Easement Premises, together 299 3 235481v9 with the right to grade, level, fill, drain, and excavate the Utility Easement Premises, and the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the location, construction, and maintenance of said sanitary sewer system for the purpose of construction and maintenance of the public sanitary sewer system. 4. Condition of Grant of Easements. The easements granted under this Easement Agreement are subject to the following conditions: (a) The City will install the drainage utility improvements pursuant to the construction plans for the portion of the Project located within the Grantor Property attached hereto as Exhibit E (“Construction Plans”) and the additional landscaping as described in the landscape plan for the Grantor Property attached hereto as Exhibit F (“Landscape Plan”); (b) The wet ditch vegetation located within the stormwater basin located within the Drainage Easement Premises will be owned and maintained by the City after the vegetation establishment and maintenance period outlined in the Project plans and construction documents is completed , which is 30 days after acceptance of initial stabilization. Thereafter, it is the obligation of the City to maintain in good condition the wet ditch vegetation shown on the Landscape Plan. (c) Following completion of the Project, the City will restore the Grantor Property to the same or better condition than existed prior to commencement of the Project. (d) The Gravel Driveway shall be a permitted encroachment over the easements granted under this Easement Agreement or any other rights claimed to the Grantor Property by the City. (e) All sanitary sewer improvements located within the Utility Easement Premises and stormwater improvements located with the Drainage Easement Premises, including, but not limited to storm sewer pipes, structures, and riprap and shall be owned by the City. (f) The City shall promptly repair and restore any damage to the Gravel Driveway caused by any work within the Drainage Easement Premises or Utility Easement Premises by the City, its agents, employees or contractors. 5. Binding Effect; Recording. This Easement Agreement shall run with the Property and shall be binding on and inure to the benefit of the Grantor, their heirs, representatives, successors and assigns. This Easement Agreement shall be filed of record in the Office of the Carver County County Recorder. IN WITNESS WHEREOF, the parties have executed this Easement Agreement to be effective as of the Effective Date. [The remainder of the page is intentionally left blank. Signature pages to follow.] 300 4 235481v9 CITY OF CHANHASSEN By:_________________________________ Elise Ryan, Mayor And: _______________________________ Laurie Hokkanen, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _______ day of ________________, 2025, by Elise Ryan and Laurie Hokkanen, respectively the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on its behalf. ___________________________________ Notary Public 301 5 235481v9 GRANTOR: FRONTIER TRAIL ASSOCIATION By:_________________________________ ___________________________ [print name] Its ___________________________ [title] STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _______ day of ________________, 2025, by _____________________, the _______________________ of the Frontier Trail Association, a Minnesota non-profit corporation, on behalf of the corporation. ___________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP/smt 302 6 235481v9 EXHIBIT "A" to GRANT OF PERMANENT EASEMENTS Depiction of Gravel Driveway 303 7 235481v9 EXHIBIT "B" to GRANT OF PERMANENT EASEMENTS Legal Description of Drainage Easement Premises 304 8 235481v9 EXHIBIT "C" to GRANT OF PERMANENT EASEMENTS Depiction of Drainage Easement Premises 305 9 235481v9 EXHIBIT "D" to GRANT OF PERMANENT EASEMENTS Legal Description of Sanitary Sewer Easement Premises 306 10 235481v9 EXHIBIT "E" to GRANT OF PERMANENT EASEMENTS Depiction of Sanitary Sewer Easement Premises 307 11 235481v9 EXHIBIT "F" to GRANT OF PERMANENT EASEMENTS Construction Plans 308 12 235481v9 EXHIBIT "G" to GRANT OF PERMANENT EASEMENTS Landscape Plan 309 1 235991v8235991v7 AGREEMENT WITH RESPECT TO A GRANT OF EASEMENTS AND ASSESSMENT AGREEMENT WITH RESPECT TO A GRANT OF EASEMENTS AND ASSESSMENT (“Agreement”) made this ____ day of _____________, 2025, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation (“City”), and FRONTIER TRAIL ASSOCIATION, a Minnesota nonprofit corporation, (“Association”). RECITALS WHEREAS, the Association is the fee owner of Lot 12, Auditor’s Subdivision 22, Carver County, Minnesota, Parcel No. 250800150 (“Property”); and WHEREAS, the Association or its predecessors previously granted the following easements to the City over the Property: (i) Easement dated March 14, 1976, recorded in Carver County Office of the Registrar of Deeds, Book 126 of Deeds, Page 142 on March 16, 1976 as Document No. 28404; (ii) Easement dated September 11, 1978, recorded in Carver County Office of the Registrar of Deeds, Book 144 of Deeds, Page 169 on March 16, 1978 as Document No. 39690; (iii) Easement dated September 11, 1978, recorded in Carver County Book 144 of Deeds, Page 173 on March 16, 1978 as Document No. 39691; (“City Easements”); and WHEREAS, the City has requested revisions to the City Easements to better facilitate the construction of 2025 City Pavement Rehabilitation Project, City Project 25-01 (“Project”) and a reconfiguration of an easement for existing sanitary sewer located within the Property; and WHEREAS, by Resolution No. 2025-37 the City has levied an Assessment against the Property for the Project in the amount of $9,270 (“Assessment”); and WHEREAS, the Association filed a written objection to the Assessment with the City on May 9, 2025 pursuant to Minn. Stat. 429.061, subd. 2 and Minn. Stat. 429.081 (“Objection”), alleging that the Assessment is not valid because the Project does not confer the required special benefit against the Property; and WHEREAS, the City disagrees with the merits of the Objection; and WHEREAS, the parties wish to resolve both the Assessment and the grant of the easements, based on the following terms, with neither party relinquishing their claims with respect to the validity of the Assessment; NOW, THEREFORE, in consideration of the foregoing facts and circumstances, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 310 2 235991v8235991v7 1. Recitals Incorporated. The foregoing recitals are hereby incorporated and made a part of this Agreement. 2. Easement Conveyance. the Association will convey to the City a public drainage easement and sanitary sewer utility easement (“Easements”) over the Property in the form attached hereto as Exhibit A (“Easement Agreement”). The Easement Agreement shall be effective upon its execution . 3. Consent to Access. The Association consents and grant unto the City, its agents and assigns, the right to enter upon the Easement Area shown in the Easement Agreement in connection with Project over, under, on, and across the property located to complete the work in the Construction Plans and Landscape Plan . Provided, however, that current access to and through the Property and Lotus Lake for Association members shall be preserved during the project. 4. Vacation. The City will promptly undertake the vacation of the City Easements at the City’s sole cost. 5. Payment. To resolve the objection to the Assessment and the expanded and reconfigured easement granted under this Agreement, the City will pay to the Association $9,270.00 (“Payment”) and the Association hereby withdraws its Objection to the Assessment and agrees that the Agreement represents a full and fair settlement of any claims by the Association under Minn. Stat. 429 related to the Assessment against the Property. The City shall make the Payment upon receipt by the City of the Association’s executed Agreement and the Exhibits attached to this Agreement. 6. Survival and Recording. The provisions of this Agreement shall survive the execution of the Grant of Easement and the City shall execute the Grant of Easement and record the same with the County within 5 days of execution by both parties to this Agreement. [Remainder of page is intentionally left blank. Signature pages follow.] 311 3 235991v8235991v7 CITY OF CHANHASSEN By ___________________________________ (SEAL) Elise Ryan, Mayor And __________________________________ Laurie Hokkanen, City Manager 312 4 235991v8235991v7 FRONTIER TRAIL ASSOCIATION BY:__________________________________ PRINT NAME:__________________________ ITS:_________________________________ 313 A-5 235991v8235991v7 EXHIBIT A TO AGREEMENT GRANT OF PERMANENT EASEMENTS THIS GRANT OF PERMANENT EASEMENTS (“Easement Agreement”) is made this _____ day of _________________, 2025 (“Effective Date”), by and between the CITY OF CHANHASSEN, Minnesota municipal corporation (“City”), and FRONTIER TRAIL ASSOCIATION, a Minnesota non-profit corporation ("Grantor"). RECITALS WHEREAS, Grantor is the owner of certain real property within the City of Chanhassen, Minnesota legally described as follows: Lot Twelve (12), Auditor's Subdivision Number Two (2), according to the map or plat thereof on file and of record, Office of the Register of Deeds, in and for Carver County, Minnesota. (“Grantor Property”); WHEREAS, Grantor Property is a non-residential lot used by the members of the Grantor for access from Frontier Trail to Lotus Lake and includes a gravel driveway for such access as depicted in Exhibit A attached hereto (“Gravel Driveway”); WHEREAS, Grantor or its predecessors previously granted the following easements to the City over the Grantor Property: (i) Easement dated March 14, 1976, recorded in Carver County Office of the Registrar of Deeds, Book 126 of Deeds, Page 142 on March 16, 1976 as Document No. 28404; (ii) Easement dated September 11, 1978, recorded in Carver County Office of the Registrar of Deeds, Book 144 of Deeds, Page 169 on March 16, 1978 as Document No. 39690; (iii) Easement dated September 11, 1978, recorded in Carver County Book 144 of Deeds, Page 173 on March 16, 1978 as Document No. 39691; (“City Easements”); WHEREAS, the City has requested that new easements be provided by the Association to facilitate storm drainage improvements for the 2025 City Pavement Rehabilitation, Project 25-01 (“Project”) and a reconfiguration of the easement for the existing public sanitary sewer within the Grantor Property; 314 A-6 235991v8235991v7 WHEREAS, the Association is willing to grant the requested easements upon the conditions provided herein, provided that the City will process and approve vacations for all existing City Easements, which will be replaced by this Grant of Easements; NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, Grantor and the City agree as follows: 1. Recitals Incorporated. The recitals set forth above are hereby incorporated into and made a part of this Agreement. 2. Grant of Public Drainage Easement. Grantor hereby grants to the City forever, a permanent easement for public drainage purposes over, across, on, under, and through land situated within the County of Carver, State of Minnesota, as legally described on the attached Exhibit "B" and depicted on Exhibit “C” (“the Drainage Easement Premises”); provided, however, that the Drainage Easement Premises is limited to the area south of the existing Gravel Driveway. This grant of easement shall include the rights of the City, its contractors, agents, servants, and assigns, to enter upon the Drainage Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain said public drainage systems over, across, on, under, and through the Drainage Easement Premises, together with the right to grade, level, fill, drain, and excavate the Drainage Easement Premises, and the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the location, construction, and maintenance of said drainage systems. City work within the Drainage Easement Premises after the completion of the Project shall generally conform to the landscaping buffer planting standards set forth on Exhibit G, to the extent that it is applicable to the work to be performed by the City. The City will construct the Project in accordance with the construction plans for the portion of the Project on the Property as shown on Exhibit F attached hereto (“Construction Plans”) and will install the additional landscaping as described in the landscape plan attached hereto as Exhibit G (“Landscape Plan”). The drainage basin shown on the Construction Plans shall be installed as a “dry pond” which will drain dry over a period of time following a rain event and is designed to accommodate simulated runoff from a 100-year storm event based on current engineering calculations. 3. Grant of Sanitary Sewer Easement. Grantor hereby grants to the City forever, a permanent easement for public sanitary sewer purposes over, across, on, under, and through land situated within the County of Carver, State of Minnesota, as legally described on the attached Exhibit "D" and depicted on Exhibit “E” (“the Utility Easement Premises”). This grant of easement shall include the rights of the City, its contractors, agents, servants, and assigns, to enter upon the Utility Easement Premises at all reasonable times to construct, reconstruct, inspect, repair, and maintain said public drainage systems over, across, on, under, and through the Utility Easement Premises, together with the right to grade, level, fill, drain, and excavate the Utility Easement Premises, and the further right to remove trees, bushes, undergrowth, and other obstructions interfering with the location, construction, and maintenance of said sanitary sewer system for the purpose of construction and maintenance of the public sanitary sewer system. 315 A-7 235991v8235991v7 4. Condition of Grant of Easements. The easements granted under this Easement Agreement are subject to the following conditions: (a) The City will install the drainage utility improvements pursuant to the construction plans for the portion of the Project located within the Grantor Property attached hereto as Exhibit E (“Construction Plans”) and the additional landscaping as described in the landscape plan for the Grantor Property attached hereto as Exhibit F (“Landscape Plan”); (b) The wet ditch vegetation located within the stormwater basin located within the Drainage Easement Premises will be owned and maintained by the City after the vegetation establishment and maintenance period outlined in the Project plans and construction documents is completed , which is 30 days after acceptance of initial stabilization. Thereafter, it is the obligation of the City to maintain in good condition the wet ditch vegetation shown on the Landscape Plan. (c) Following completion of the Project, the City will restore the Grantor Property to the same or better condition than existed prior to commencement of the Project. (d) The Gravel Driveway shall be a permitted encroachment over the easements granted under this Easement Agreement or any other rights claimed to the Grantor Property by the City. (e) All sanitary sewer improvements located within the Utility Easement Premises and stormwater improvements located with the Drainage Easement Premises, including, but not limited to storm sewer pipes, structures, and riprap and shall be owned by the City. (f) The City shall promptly repair and restore any damage to the Gravel Driveway caused by any work within the Drainage Easement Premises or Utility Easement Premises by the City, its agents, employees or contractors. 5. Binding Effect; Recording. This Easement Agreement shall run with the Property and shall be binding on and inure to the benefit of the Grantor, their heirs, representatives, successors and assigns. This Easement Agreement shall be filed of record in the Office of the Carver County County Recorder. IN WITNESS WHEREOF, the parties have executed this Easement Agreement to be effective as of the Effective Date. [The remainder of the page is intentionally left blank. Signature pages to follow.] 316 A-8 235991v8235991v7 CITY OF CHANHASSEN By:_________________________________ Elise Ryan, Mayor And: _______________________________ Laurie Hokkanen, City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this _______ day of ________________, 2025, by Elise Ryan and Laurie Hokkanen, respectively the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on its behalf. ___________________________________ Notary Public 317 A-9 235991v8235991v7 GRANTOR: FRONTIER TRAIL ASSOCIATION By:_________________________________ ___________________________ [print name] Its ___________________________ [title] STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _______ day of ________________, 2025, by _____________________, the _______________________ of the Frontier Trail Association, a Minnesota non-profit corporation, on behalf of the corporation. ___________________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 AMP/smt 318 A-10 235991v8235991v7 EXHIBIT "A" to GRANT OF PERMANENT EASEMENTS Depiction of Gravel Driveway 319 A-11 235991v8 EXHIBIT "B" to GRANT OF PERMANENT EASEMENTS Legal Description of Drainage Easement Premises 320 EXHIBIT "C" to GRANT OF PERMANENT EASEMENTS Depiction of Drainage Easement Premises 321 EXHIBIT "D" to GRANT OF PERMANENT EASEMENTS Legal Description of Sanitary Sewer Utility Easement Premises 322 EXHIBIT "E" to GRANT OF PERMANENT EASEMENTS Depiction of Sanitary Sewer Utility Easement Premises 323 EXHIBIT "F" to GRANT OF PERMANENT EASEMENTS Construction Plans 324 EXHIBIT "G" to GRANT OF PERMANENT EASEMENTS Landscape Plan 325 City Council Item June 9, 2025 Item Resolution 2025-XX: Authorizing the Issuance and Awarding Sale of $13.185M GO Temporary Sales Tax Revenue Bonds, Series 2025A. File No.Item No: G.1 Agenda Section GENERAL BUSINESS Prepared By Kelly Grinnell, Finance Director Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves the Resolution Authorizing the Issuance and Awarding the Sale of $13.185M GO Temporary Sales Tax Revenue Bonds, Series 2025A and Pledging Tax Revenues for the Payment Thereof." Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY BACKGROUND DISCUSSION On May 5, 2025, th e City Council approved the purchase agreement with Level 7 Development, LLC for approximately 13.1 acres of land for the construction of the Chanhassen Bluffs Community Center at a cost of $1,000,000 per gross acre. The city intends to close on the purchase of the land in the near future and is issuing temporary bonds to pay for the land purchase and initial design and engineering costs for the community center. 326 The City will receive bids for the bonds the morning of June 9, 2025, and the results will be presented to the City Council later that night. It is expected the bonds will be issued for a total of $13.185 million, subject to a potential premium or discount, with a maturity date of February 1, 2028. Interest on the bonds will be due semiannually on February 1 and August 1 each year. Revenues from the local option sales tax will be used to pay the interest. The city will have the option to prepay the bonds on or after August 1, 2026. The city will likely prepay the bonds before February 1, 2028, as the intent is to issue bonds for the construction of the new community center after final design and costs are approved. The new bonds would be issued in an amount that also covers the cost to prepay the temporary 2025A bonds. There are several attachments included to this agenda item. The Preliminary Official Statement (POS) is the official document distributed to the marketplace for potential bidders. The Pre Sale Report summarizes the proposed debt issue based on expectations from February 24, 2025. A Sale Day Report will be available later in the day on June 9, 2025, and will be included in the packet at that time. The Sale Day Report will show the results of the bids and updated bond repayment information. The resolution authorizing the sale will also be updated at that time. The Standard & Poor's Report is also attached. It indicates they have affirmed the city's existing AAA rating. BUDGET RECOMMENDATION Adopt Resolution Authorizing the Issuance and Awarding the Sale of $13.185M GO Temporary Sales Tax Revenue Bonds, Series 2025A and Pledging Tax Revenues for the Payment Thereof. ATTACHMENTS Chanhassen 2025A Resolution GO Temporary Sales Tax Revenue Bonds POS Chanhassen 2025A Pre Sale Report Chanhassen 2025A S&P Global Ratings Report - Chanhassen 2025A Sale Day Report Chanhassen 2025A Proposal Form 2025A - UW Signed 327 173202589v1 EXTRACT OF MINUTES OF A MEETING CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA HELD: JUNE 9, 2025 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was duly held at the City Hall on June 9, 2025, at 7:00 P.M., for the purpose, in part, of authorizing the issuance and awarding the sale of $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A. The following members were present: and the following were absent: Member ________________ introduced the following resolution and moved its adoption: RESOLUTION NO. ___________ RESOLUTION AUTHORIZING THE ISSUANCE AND AWARDING THE SALE OF $13,185,000 GENERAL OBLIGATION TEMPORARY SALES TAX REVENUE BONDS, SERIES 2025A AND PLEDGING TAX REVENUES FOR THE PAYMENT THEREOF A. WHEREAS, the City Council (the "Council") of the City of Chanhassen (the "City") has heretofore determined and declared that it is necessary and expedient to issue $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A (the "Bonds" or a "Bond"), pursuant to Minnesota Statutes, Chapter 475; and B. Minnesota Session Laws, 2023, Regular Session, Chapter 64, Article 10, Section 29 (the "Special Law"), authorizes the City to levy a sales and use tax of one-half of one percent on sales transactions taxable pursuant to Minnesota Statutes, Chapter 297A, that occur within the City (the "Sales Tax") to finance the acquisition of land and project costs for the construction of a new Chan Rec Center, which is expected to include an indoor walking track, indoor ice facilities, indoor playground, indoor fieldhouse, and expanded community center amenities, as outlined in the Chanhassen Bluffs Community Center project plan, to be located in the City (the "Chanhassen Bluffs Community Center") as authorized by the November 5, 2024 general election and as further provided in the Special Law and Minnesota Statutes, Chapter 475 (collectively, the "Act"). Under the Act, the City is also authorized to issue its general obligation bonds in an amount not to exceed $40,000,000, plus associated bonding costs for the Chanhassen Bluffs Community Center in anticipation of the collection of the Sales Tax (collectively, the "Tax Revenues") to provide funds for acquisition or betterment of the Chanhassen Bluffs Community Center, and to apply the Tax Revenues to the payment of the costs of collecting the Sales Tax, to the payment of all or a portion of the cost of the Chanhassen Bluffs Community Center or to the payment of principal of or interest on such bonds; and C. WHEREAS, the City did take all action required under the Act to authorize the issuance of such general obligation bonds by resolution of this Council, and the City enacted an 328 173202589v1 2 ordinance imposing the Local Sales and Use Tax as authorized by the Act, which is codified as Ordinance No. 737 of the Chanhassen City Code (the "Ordinance"); and D. WHEREAS, on May 5, 2025, the Council adopted Resolution No. 2025-32 (the "Preliminary Resolution") authorizing the issuance and sale of the Bonds; and E. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent municipal advisor for the sale of the Bonds and was therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by Ehlers; and F. WHEREAS, the proposals set forth on Exhibit A attached hereto were received by the City Manager, or designee, at the offices of Ehlers at 10:00 A.M. this same day pursuant to the Preliminary Official Statement for the Bonds, dated May 29, 2025; and G. WHEREAS, it is in the best interests of the City that the Bonds be issued in book- entry form as hereinafter provided; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Chanhassen, Minnesota, as follows: 1. Acceptance of Proposal; Ratification. The City Council hereby affirms and ratifies: (a) the Preliminary Resolution, which granted authority to the Mayor and City Manager to approve the sale of the Bonds pursuant to the parameters contained therein, and (b) the approval of, and actions taken in regards thereto by, the Mayor and City Manager for the sale of the Bonds. The Preliminary Resolution is hereby incorporated as though fully set forth herein. This resolution constitutes the "Ratifying Resolution" contemplated by the Preliminary Resolution. The proposal of ______________________________ (the "Purchaser"), to purchase the Bonds, in accordance with the Preliminary Official Statement established for the Bonds, at the rates of interest hereinafter set forth, and to pay therefor the sum of $__________, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received, is hereby accepted and the Bonds are hereby awarded to the Purchaser. The Finance Director is directed to retain the deposit of the Purchaser. 2. Bond Terms. (a) Original Issue Date; Denominations; Maturities. The Bonds shall be dated June 26, 2025, as the date of original issue, and shall be issued forthwith on or after such date in fully registered form. The Bond shall be numbered R-1 in the denomination of $5,000 each or in any integral multiple thereof of a single maturity (the "Authorized Denominations"). The Bonds shall mature on February 1, 2028. (b) Book Entry Only System. The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York or any of its successors or its successors to its functions hereunder (the "Depository") will act as securities depository for the Bonds, and to this end: 329 173202589v1 3 (i) The Bonds shall be initially issued and, so long as they remain in book entry form only (the "Book Entry Only Period"), shall at all times be in the form of a separate single fully registered Bond for each maturity of the Bonds; and for purposes of complying with this requirement under paragraphs 5 and 10 Authorized Denominations for any Bond shall be deemed to be limited during the Book Entry Only Period to the outstanding principal amount of that Bond. (ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register maintained by the Bond Registrar (as hereinafter defined) in the name of CEDE & CO., as the nominee (it or any nominee of the existing or a successor Depository, the "Nominee"). (iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any responsibility or obligation to any broker, dealer, bank, or any other financial institution for which the Depository holds Bonds as securities depository (the "Participant") or the person for which a Participant holds an interest in the Bonds shown on the books and records of the Participant (the "Beneficial Owner"). Without limiting the immediately preceding sentence, neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner or any other person, other than the Depository, of any notice with respect to the Bonds, including any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any other person, other than the Depository, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the Depository as the Registered Holder of any Bonds (the "Holder"). For purposes of securing the vote or consent of any Holder under this Resolution, the City may, however, rely upon an omnibus proxy under which the Depository assigns its consenting or voting rights to certain Participants to whose accounts the Bonds are credited on the record date identified in a listing attached to the omnibus proxy. (iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute owner of the Bonds for the purpose of payment of the principal of and premium, if any, and interest on the Bonds, for the purpose of giving notices of redemption and other matters with respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all principal of and premium, if any, and interest on the Bonds only to the Holder or the Holders of the Bonds as shown on the bond register, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. (v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that the Depository has determined to substitute a new Nominee in place of the existing Nominee, and subject to the transfer provisions in paragraph 10, references to the Nominee hereunder shall refer to such new Nominee. 330 173202589v1 4 (vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may be, to the Depository as provided in the Letter of Representations to the Depository required by the Depository as a condition to its acting as book-entry Depository for the Bonds (said Letter of Representations, together with any replacement thereof or amendment or substitute thereto, including any standard procedures or policies referenced therein or applicable thereto respecting the procedures and other matters relating to the Depository's role as book-entry Depository for the Bonds, collectively hereinafter referred to as the "Letter of Representations"). (vii) All transfers of beneficial ownership interests in each Bond issued in book- entry form shall be limited in principal amount to Authorized Denominations and shall be effected by procedures by the Depository with the Participants for recording and transferring the ownership of beneficial interests in such Bonds. (viii) In connection with any notice or other communication to be provided to the Holders pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other action to be taken by Holders, the Depository shall consider the date of receipt of notice requesting such consent or other action as the record date for such consent or other action; provided, that the City or the Bond Registrar may establish a special record date for such consent or other action. The City or the Bond Registrar shall, to the extent possible, give the Depository notice of such special record date not less than 15 calendar days in advance of such special record date to the extent possible. (ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution and any paying agency/bond registrar agreement, shall agree to take any actions necessary from time to time to comply with the requirements of the Letter of Representations. (c) Termination of Book-Entry Only System. Discontinuance of a particular Depository's services and termination of the book-entry only system may be effected as follows: (i) The Depository may determine to discontinue providing its services with respect to the Bonds at any time by giving written notice to the City and discharging its responsibilities with respect thereto under applicable law. The City may terminate the services of the Depository with respect to the Bond if it determines that the Depository is no longer able to carry out its functions as securities depository or the continuation of the system of book-entry transfers through the Depository is not in the best interests of the City or the Beneficial Owners. (ii) Upon termination of the services of the Depository as provided in the preceding paragraph, and if no substitute securities depository is willing to undertake the functions of the Depository hereunder can be found which, in the opinion of the City, is willing and able to assume such functions upon reasonable or customary terms, or if the City determines that it is in the best interests of the City or the Beneficial Own ers of the Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being registered in the bond register in the name of the 331 173202589v1 5 Nominee, but may be registered in whatever name or names the Holder of the Bonds shall designate at that time, in accordance with paragraph 10. To the extent that the Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph 10, the Bonds will be delivered to the Beneficial Owners. (iii) Nothing in this subparagraph (c) shall limit or restrict the provisions of paragraph 10. (d) Letter of Representations. The provisions in the Letter of Representations are incorporated herein by reference and made a part of the resolution, and if and to the extent any such provisions are inconsistent with the other provisions of this resolution, the provisions in the Letter of Representations shall control. 3. Purpose; Findings. The Bonds shall provide funds to finance the Project. The total cost of the Project, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. Authorized expenses include, but are not limited to, acquiring property and paying construction expenses related to these improvements, and paying debt service on bonds or other obligations issued to finance acquisition and construction of the Project. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2026, calculated on the basis of a 360-day year of twelve 30-day months, at the rate of _____% per annum. 5. Redemption. The Bonds shall be subject to redemption and prepayment at the option of the City on August 1, 2026, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds not more than sixty (60) days and not fewer than thirty (30) days prior to the date fixed for redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) 332 173202589v1 6 and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. Bond Trust Services Corporation in Roseville, Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and any successor Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the form set forth on Exhibit B attached hereto. 8. Execution. The Bonds shall be in typewritten form, shall be executed on behalf of the City by the signatures of its Mayor and City Manager and be sealed with the seal of the City; provided, as permitted by law, both signatures may be photocopied facsimiles and the corporate seal has been omitted. In the event of disability or resignation or other absence of either officer, the Bonds may be signed by the manual or facsimile signature of the officer who may act on behalf of the absent or disabled officer. In case either officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on the Bond, substantially in the form set forth on Exhibit B attached hereto, shall have been duly executed by the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and, by inserting as the date of registration in the space provided, the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue of June 26, 2025. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of 333 173202589v1 7 registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any Authorized Denomination or Denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or the Holder's attorney dul y authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Finance Director is hereby authorized to negotiate and execute the terms of said agreement. 11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the Special Record Date. 334 173202589v1 8 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of the Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12) on, the Bond and for all other purposes whatsoever whether or not the Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A Fund" (the "Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund the following separate accounts: (a) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds. From the Construction Account there shall be paid all costs of issuance of the Bonds and all costs and expenses of financing the Project, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65. Moneys in the Construction Account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes herein levied or covenanted to be levied; and provided further that if upon completion of the Project there shall remain any unexpended balance in the Construction Account, the balance shall be transferred to the Debt Service Account. (b) Debt Service Account. To the Debt Service Account there are hereby irrevocably appropriated and pledged to, and there shall be credited: (i) Tax Revenues received prior to the Maturity Date; (ii) the proceeds of any definitive bond or additional temporary bonds in an amount, together with other moneys then on hand irrevocably appropriated to said account, as is necessary to pay the principal of, and interest on, the Bonds; (iii) any collections of all taxes which may be herein and hereafter be levied in the event that the proceeds of any definitive bond or additional temporary bonds and other available sums herein pledged to the payment of the Bonds are insufficient therefor; (iv) all funds remaining in the Construction Account after completion of the Project and payment of the costs thereof; (v) all investment earnings on funds held in the Debt Service Account; and (vi) any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest on the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are 335 173202589v1 9 needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Construction Account or Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 16. Levying of Sales Tax. The City will not amend or repeal the Ordinance relating to the Sales Tax by decreasing the sales tax rate or the appropriation of Sales Tax to the Debt Service Account, or in any way that would adversely affect the amount of Sales Tax which would otherwise be collected and deposited to the Debt Service Account. However, nothing shall prevent the City from amending the Ordinance in order to make changes in the administration, collection or enforcement of the Sales Tax; provided that such changes shall not materially adversely affect the interests of the owners of or the security for the Bonds. The City will administer, enforce and collect, or cause to be administered, enforced or collected, the Sales Tax authorized by the Ordinance, and shall take such necessary action to collect, or cause to be collected, delinquent payments in accordance with the law. 17. Pledge of Proceeds of Definitive Bonds or Additional Temporary Bonds; Coverage Test. To provide moneys for the prompt and full payment of principal and interest on the Bonds, the City shall issue and sell the definitive bond or additional temporary bonds for delivery and payment at or prior to the maturity date of the Bonds. The proceeds of the definitive bond or additional temporary bonds, together with estimated Sales Tax revenues, are hereby found, determined and declared to be sufficient in amount to pay when due one hundred five percent of the principal of and interest on the Bonds. 18. Conditions Prior to Issuance of Definitive Bonds. It is hereby found, determined and declared that all conditions precedent to the offering of definitive bonds of the City to refund the Bond to the extent necessary within the meaning of Minnesota Statutes, Section 475.61, Subdivision 5, have been met and exist. 19. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar 336 173202589v1 10 on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 20. Compliance With Reimbursement Bond Regulations. The provisions of this paragraph are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the Closing Date (a "Reimbursement Expenditure"). The City hereby certifies and/or covenants as follows: (a) Not later than sixty days after the date of payment of a Reimbursement Expenditure, the City (or person designated to do so on behalf of the City) has made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and for which the Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the general functional purpose thereof from which the Reimbursement Expenditure was to be paid (collectively the "Program"); and (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Program; provided, however, that no such Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for the Program, defined in the Reimbursement Regulations to include engineering or architectural, surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not exceed twenty percent of the "issue price" of the Bonds, and (ii) a de minimis amount of Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the proceeds of the Bonds. (b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the Bonds or any of the other types of expenditures described in Section 1.150-2(d)(3) of the Reimbursement Regulations. (c) The "reimbursement allocation" described in the Reimbursement Regulations for each Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds, and not later than 18 months after the later of (i) the date of the payment of the Reimbursement Expenditure, or (ii) the date on which the Program to which the Reimbursement Expenditure relates is first placed in service, but in no event more than three years after the date of payment of the Reimbursement Expenditure. 337 173202589v1 11 (d) Each such reimbursement allocation will be made in a writing that evidences the City's use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days after the Bonds are issued, shall be treated as made on the day the Bonds are issued. Provided, however, that the City may take action contrary to any of the foregoing covenants in this paragraph upon receipt of an opinion of its bond counsel for the Bonds stating in effect that such action will not impair the tax-exempt status of the Bonds. 21. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 22. Certificate of Registration. A certified copy of this resolution is hereby directed to be filed with the County Auditor of Carver County, Minnesota, and the Auditor/Treasurer of Hennepin County, Minnesota together with such other information as the County Auditor and Auditor/Treasurer shall require, and there shall be obtained from the County Auditor and Auditor/Treasurer a certificate that the Bonds have been entered in the respective County's Bond Register. 23. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and bond counsel, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 24. Continuing Disclosure. The City is the sole obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2 -12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described to: (a) Provide or cause to be provided to the Municipal Securities Rulemaking Board (the "MSRB") by filing at www.emma.msrb.org in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. (b) Provide or cause to be provided to the MSRB notice of the occurrence of certain events with respect to the Bonds in not more than ten (10) business days after the occurrence of the event, in accordance with the Undertaking. 338 173202589v1 12 (c) Provide or cause to be provided to the MSRB notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking, in not more than ten (10) business days following such occurrence. (d) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in the Undertaking is intended to be for the benefit of the Holders of the Bonds and shall be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and City Manager of the City or any other officer of the City authorized to act in their place (the "Officers") are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser of the Bonds, and (iii) acceptable to the Officers. 25. Negative Covenant as to Use of Bond Proceeds and Project. The City hereby covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 26. Tax-Exempt Status of the Bonds; Rebate. shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (i) requirements relating to temporary periods for investments, (ii) limitations on amounts invested at a yield greater than the yield on the Bonds, and (iii) the rebate of excess investment earnings to the United States. The City expects to satisfy the twenty-four month exemption for gross proceeds of the Bonds as provided in Section 1.148-7(e) of the Regulations. The Mayor and/or the City Manager and/or the Finance Director, are hereby authorized and directed to make such elections as to arbitrage and rebate matters relating to the Bonds as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. 27. No Designation of Qualified Tax-Exempt Obligations. The City will not designate the Bonds as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Code. 28. Official Statement. The Official Statement relating to the Bonds prepared and distributed by Ehlers is hereby approved and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement. 29. Payment of Issuance Expenses. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Wells Fargo Bank, National Association, San Francisco, California on the closing date for further distribution as directed by the City's municipal advisor, Ehlers. 339 173202589v1 13 30. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 31. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member _____________ and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared duly passed and adopted. 340 173202589v1 14 STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF CHANHASSEN I, the undersigned, the City Manager of the City of Chanhassen, Minnesota, do hereby certify that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as such minutes relate to authorizing the issuance and awarding the sale of $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A. WITNESS my hand on June 9, 2025. ________________________________ City Manager 341 173202589v1 A-1 EXHIBIT A PROPOSALS [To be supplied by Ehlers & Associates, Inc.] 342 173202589v1 EXHIBIT B FORM OF BOND UNITED STATES OF AMERICA STATE OF MINNESOTA CARVER AND HENNEPIN COUNTIES CITY OF CHANHASSEN R-__ $_________ GENERAL OBLIGATION TEMPORARY SALES TAX REVENUE BOND, SERIES 2025A Interest Rate Maturity Date Date of Original Issue CUSIP % February 1, 2028 June 26, 2025 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: The City of Chanhassen, Carver and Hennepin Counties, Minnesota (the "Issuer" or the "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for prepayment, and to pay interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2026, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of Bond Trust Services Corporation, in Roseville, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. So long as this Bond is registered in the name of the Depository or its Nominee as provided in the Resolution hereinafter described, and as those 343 173202589v1 B-2 terms are defined therein, payment of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be made as provided in the Letter of Representations, as defined in the Resolution. Until termination of the book-entry only system pursuant to the Resolution, Bonds may only be registered in the name of the Depository or its Nominee. Optional Redemption. The Bonds of this issue (the "Bonds") shall be subject to redemption and prepayment at the option of the City on August 1, 2026, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds not more than sixty (60) days and not fewer than thirty (30) days prior to the date fixed for redemption. Prior to the date on which any Bond or Bonds are directed by the Issuer to be redeemed in advance of maturity, the Issuer will cause notice of the call thereof for redemption identifying the Bonds to be redeemed to be mailed to the Bond Registrar and all Bondholders, at the addresses shown on the Bond Register. All Bonds so called for redemption will cease to bear interest on the specified redemption date, provided funds for their redemption have been duly deposited. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of the Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of the Bond, without service charge, a new Bond or Bonds having the same stated maturity and interest rate and of any Authorized Denomination or Denominations, as requested by the Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is issued as a single instrument in the total principal amount of $13,185,000, issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council on June 9, 2025 (the "Resolution"), to finance the acquisition of land and project costs for the construction of a new Chan Rec Center, which is expected to include an indoor walking track, indoor ice facilities, indoor playground, indoor fieldhouse, and expanded community center amenities, as outlined in the Chanhassen Bluffs Community Center project plan, to be located in the City. This Bond is payable out of the General Obligation Temporary Sales Tax Revenue 344 173202589v1 B-3 Bonds, Series 2025A Fund of the Issuer, and into which fund there are to be paid proceeds of the definitive general obligation bonds or additional general obligation temporary bonds which the Issuer is required by law to issue at or prior to the maturity of this Bond for the purpose of refunding the same. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely in fully registered form in Authorized Denominations (as defined in the Resolution) and are exchangeable for fully registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by the Holder's attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized Denomination or Denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided herein with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Not Qualified Tax-Exempt Obligation. This Bond has not been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been 345 173202589v1 B-4 performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Chanhassen, Carver and Hennepin Counties, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its City Manager, the corporate seal of the Issuer having been intentionally omitted as permitted by law. Date of Registration: ________________________ BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. BOND TRUST SERVICES CORPORATION Roseville, Minnesota, Bond Registrar By____________________ Authorized Signature Registrable by: BOND TRUST SERVICES CORPORATION Payable at: BOND TRUST SERVICES CORPORATION CITY OF CHANHASSEN, CARVER AND HENNEPIN COUNTIES, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile City Manager 346 173202589v1 B-5 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - _________________ as custodian for ________________________ (Cust) (Minor) under the _______________________________ Uniform Transfers to Minors Act (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto ______________________________________________________ the within Bond and does hereby irrevocably constitute and appoint _________________ attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated:_____________ _______________________________________ Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: ___________________________ Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17 Ad-15(a)(2). The Bond Registrar will not affect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: ________________________________________ ________________________________________ ________________________________________ (Include information for all joint owners if the Bond is held by joint account.) 347 This Preliminary Official Statement and the information contained herein are subject to completion and amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy these securities nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale wouldbe unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This Preliminary Official Statement is in a form deemed final as of its date for purposes of SEC Rule 15c2-12(b) (1), but is subject to revision, amendmentand completion in a Final Official Statement.PRELIMINARY OFFICIAL STATEMENT DATED MAY 29, 2025 In the opinion of Taft Stettinius & Hollister LLP, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, at the time of the issuance of the Bonds, the interest on the Bonds is excluded from gross income for federal income tax purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions). Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals or for purposes of the Minnesota alternative minimum tax applicable to individuals, estates or trusts; however, interest on the Bonds is taken into account in determining "annual adjusted financial statement income" for the purpose of computing the federal alternative minimum tax imposed on certain corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences. See "TAX EXEMPTION" herein. The City will NOT designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of the Internal Revenue Code of 1986, as amended, which permits financial institutions to deduct interest expenses allocable to the Bonds to the extent permitted under prior law. New Issue Rating Application Made: S&P Global Ratings CITY OF CHANHASSEN, MINNESOTA (Carver and Hennepin Counties) $13,185,000* GENERAL OBLIGATION TEMPORARY SALES TAX REVENUE BONDS, SERIES 2025A PROPOSAL OPENING: June 9, 2025, 10:00 A.M., C.T. CONSIDERATION: June 9, 2025, 7:00 P.M., C.T. PURPOSE/AUTHORITY/SECURITY: The $13,185,000* General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A (the "Bonds") are being issued pursuant to Minnesota Statutes, Chapter 475, as amended, particularly Section 475.61, subd. 6 and Minnesota Session Laws 2023, Chapter 64, Article 10, Section 29 (the "Special Legislation"), by the City of Chanhassen, Minnesota (the "City"), to provide temporary financing to facilitate land acquisition for the construction of the City's community center project (the "Project") as authorized by the Special Legislation. The Bonds are general obligations of the City, for which its full faith and credit and taxing powers are pledged. Delivery is subject to receipt of an approving legal opinion of Taft Stettinius & Hollister LLP, Minneapolis, Minnesota. DATE OF BONDS: June 26, 2025 MATURITY: February 1 as follows: Year Amount* 2028 $13,185,000 *MATURITY ADJUSTMENTS: The City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000. TERM BONDS: See "Term Bond Option" herein. INTEREST: February 1, 2026 and semiannually thereafter. OPTIONAL REDEMPTION: Bonds maturing on February 1, 2028 are subject to call for prior optional redemption on August 1, 2026 or any date thereafter, at a price of par plus accrued interest to the date of optional redemption. MINIMUM PROPOSAL: $13,105,890. GOOD FAITH DEPOSIT:A good faith deposit in the amount of $263,700 shall be made by the winning bidder by wire transfer of funds. PAYING AGENT: Bond Trust Services Corporation. BOND COUNSEL: Taft Stettinius & Hollister LLP. MUNICIPAL ADVISOR: Ehlers and Associates, Inc. BOOK-ENTRY-ONLY:See "Book-Entry-Only System" herein (unless otherwise specified by the purchaser). 348 REPRESENTATIONS No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representation other than those contained in this Preliminary Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Preliminary Official Statement does not constitute an offer to sell or a solicitation of an offer to buy any of the Bonds in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. This Preliminary Official Statement is not to be construed as a contract with the Underwriter (Syndicate Manager). Statements contained herein which involve estimates or matters of opinion are intended solely as such and are not to be construed as representations of fact. Ehlers and Associates, Inc. prepared this Preliminary Official Statement and any addenda thereto relying on information of the City and other sources for which there is reasonable basis for believing the information is accurate and complete. Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is not expressing any opinion as to the completeness or accuracy of the information contained therein. Compensation of Ehlers and Associates, Inc., payable entirely by the City, is contingent upon the delivery of the Bonds. COMPLIANCE WITH S.E.C. RULE 15c2-12 Certain municipal obligations (issued in an aggregate amount over $1,000,000) are subject to Rule 15c2-12 promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the "Rule"). Preliminary Official Statement: This Preliminary Official Statement was prepared for the City for dissemination to potential investors. Its primary purpose is to disclose information regarding the Bonds to prospective underwriters in the interest of receiving competitive proposals in accordance with the sale notice contained herein. Unless an addendum is posted prior to the sale, this Preliminary Official Statement shall be deemed nearly final for purposes of the Rule subject to completion, revision and amendment in a Final Official Statement as defined below. Review Period: This Preliminary Official Statement has been distributed to prospective bidders for review. Comments or requests for the correction of omissions or inaccuracies must be submitted to Ehlers and Associates, Inc. at least two business days prior to the sale. Requests for additional information or corrections in the Preliminary Official Statement received on or before this date will not be considered a qualification of a proposal received from an underwriter. If there are any changes, corrections or additions to the Preliminary Official Statement, interested bidders will be informed by an addendum prior to the sale. Final Official Statement: Copies of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within seven business days following the proposal acceptance. Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply with provisions of the Rule which require that underwriters obtain from the issuers of municipal securities (or other obligated party) an agreement for the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Preliminary Official Statement describes the conditions under which the City is required to comply with the Rule. CLOSING CERTIFICATES Upon delivery of the Bonds, the underwriter (Syndicate Manager) will be furnished with the following items: (1) a certificate of the appropriate officials to the effect that at the time of the sale of the Bonds and all times subsequent thereto up to and including the time of the delivery of the Bonds, this Preliminary Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signed by the appropriate officer evidencing payment for the Bonds; (3) a certificate evidencing the due execution of the Bonds, including statements that (a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and delivery of the Bonds, (b) neither the corporate existence or boundaries of the City nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of the Bonds have been repealed, revoked or rescinded; and (4) a certificate setting forth facts and expectations of the City which indicates that the City does not expect to use the proceeds of the Bonds in a manner that would cause them to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or within the meaning of applicable Treasury Regulations. ii 349 TABLE OF CONTENTS INTRODUCTORY STATEMENT.........................1 THE BONDS..........................................1 GENERAL........................................1 OPTIONAL REDEMPTION..........................1 AUTHORITY; PURPOSE............................2 ESTIMATED SOURCES AND USES..................2 SECURITY.......................................2 RATING..........................................3 CONTINUING DISCLOSURE........................3 LEGAL OPINION..................................3 STATEMENT REGARDING BOND COUNSEL PARTICIPATION.............................4 TAX EXEMPTION.................................4 NON-QUALIFIED TAX-EXEMPT OBLIGATIONS.......6 MUNICIPAL ADVISOR.............................6 MUNICIPAL ADVISOR AFFILIATED COMPANIES.....6 INDEPENDENT AUDITORS.........................6 RISK FACTORS...................................7 VALUATIONS........................................9 OVERVIEW.......................................9 CURRENT PROPERTY VALUATIONS...............10 2024/25 NET TAX CAPACITY BY CLASSIFICATION...11 TREND OF VALUATIONS.........................11 LARGER TAXPAYERS AND TAXPAYING PARCELS..12 DEBT...............................................12 DIRECT DEBT...................................12 DEBT PAYMENT HISTORY........................13 FUTURE FINANCING.............................13 SCHEDULE OF BONDED INDEBTEDNESS...........15 OVERLAPPING DEBT.............................18 DEBT RATIOS...................................19 TAX RATES, LEVIES AND COLLECTIONS...............19 TAX LEVIES AND COLLECTIONS..................19 TAX CAPACITY RATES...........................20 THE ISSUER.........................................21 CITY GOVERNMENT.............................21 POST EMPLOYMENT BENEFITS...................21 LITIGATION.....................................22 MUNICIPAL BANKRUPTCY.......................22 FUNDS ON HAND................................22 ENTERPRISE FUNDS.............................23 SUMMARY GENERAL FUND INFORMATION........24 GENERAL INFORMATION.............................25 LOCATION......................................25 LARGER EMPLOYERS............................25 BUILDING PERMITS..............................26 U.S. CENSUS DATA...............................26 EMPLOYMENT/UNEMPLOYMENT DATA...........27 FINANCIAL STATEMENTS...........................A-1 FORM OF LEGAL OPINION...........................B-1 BOOK-ENTRY-ONLY SYSTEM........................C-1 FORM OF CONTINUING DISCLOSURE UNDERTAKING..D-1 TERMS OF PROPOSAL...............................E-1 PROPOSAL FORM iii 350 CITY OF CHANHASSEN CITY COUNCIL Term Expires Elise Ryan Mayor January 2029 Josh Kimber Council Member January 2029 Jerry McDonald Council Member January 2027 Haley Schubert Council Member January 2029 Mark Von Oven Council Member January 2027 ADMINISTRATION Kelly Grinnell, Finance Director Laurie Hokkanen, City Manager PROFESSIONAL SERVICES Campbell Knutson, P.A., City Attorney, Eagan, Minnesota Taft Stettinius & Hollister LLP, Bond Counsel , Minneapolis, Minnesota Ehlers and Associ ates, Inc., Municipal Advisors, Roseville, Minnesota (Other office located in Waukesha, Wisconsin) iv 351 INTRODUCTORY STATEMENT This Preliminary Official Statement contains certain information regarding the City of Chanhassen, Minnesota (the "City") and the issuance of its $13,185,000* General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A (the "Bonds"). Any descriptions or summaries of the Bonds, statutes, or documents included herein are not intended to be complete and are qualified in their entirety by reference to such statutes and documents and the form of the Bonds to be included in the resolution authorizing the issuance and sale of the Bonds ("Award Resolution") to be adopted by the City Council on June 9, 2025. Inquiries may be directed to Ehlers and Associates, Inc. ("Ehlers" or the "Municipal Advisor"), Roseville, Minnesota, (651) 697-8500, the City's municipal advisor. A copy of this Preliminary Official Statement may be downloaded from Ehlers' web site at www.ehlers-inc.com by connecting to the Bond Sales link and following the directions at the top of the site. THE BONDS GENERAL The Bonds will be dated originally as of June 26, 2025, will be issued in fully registered form in the denomination of $5,000 each, or any integral multiple thereof, and will mature on February 1, 2028.The Bonds will bear interest at a single rate specified in the Proposal of the purchaser and will be payable on February 1 and August 1 of each year, commencing February 1, 2026, to the registered owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Unless otherwise specified by the purchaser, the Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). (See "Book-Entry-Only System" herein.) As long as the Bonds are held under the book-entry system, beneficial ownership interests in the Bonds may be acquired in book-entry form only, and all payments of principal of, premium, if any, and interest on the Bonds shall be made through the facilities of DTC and its participants. If the book-entry system is terminated, principal of, premium, if any, and interest on the Bonds shall be payable as provided in the Award Resolution. The City has selected Bond Trust Services Corporation, Roseville, Minnesota ("BTSC"), to act as paying agent (the "Paying Agent"). BTSC and Ehlers are affiliate companies. The City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to appoint a successor . *Preliminary, subject to change. OPTIONAL REDEMPTION At the option of the City, the Bonds maturing February 1, 2028 shall be subject to optional redemption prior to maturity on August 1, 2026 or any date thereafter, at a price of par plus accrued interest to the date of optional redemption. 1 352 Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts of the Bonds to be redeemed shall be at the discretion of the City. If only part of the Bonds having a common maturity date are called for redemption, then the City or Paying Agent, if any, will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeemed. Notice of redemption shall be sent by mail not more than 60 days and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books. AUTHORITY; PURPOSE The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, as amended, particularly Section 475.61, subd. 6 and Minnesota Session Laws 2023, Chapter 64, Article 10, Section 29 (the "Special Legislation"), by the City, to provide temporary financing to facilitate land acquisition for the construction of the City's community center project (the "Project") as authorized by the Special Legislation. ESTIMATED SOURCES AND USES* Sources Par Amount of Bonds $13,185,000 Total Sources $13,185,000 Uses Total Underwriter's Discount (0.600%)$79,110 Costs of Issuance 102,000 Deposit to Construction Fund 13,000,000 Rounding Amount 3,890 Total Uses $13,185,000 *Preliminary, subject to change. SECURITY The Bonds will be general obligations of the City for which its full faith and credit and taxing powers are pledged without limitation as to rate or amount. The principal of and interest on the Bonds are payable from additional temporary bonds or permanent bonds, and sales tax revenues equal to one-half percent (0.5%) of the gross receipts arising from certain sales and uses within the City. In accordance with Minnesota Statutes, receipt of sales tax revenues and/or additional temporary or permanent bonds will be sufficient to provide not less than 105% of the debt service requirements on the Bonds. In the event funds on hand for payment of principal and interest are at any time insufficient, the City is required to levy additional taxes upon all taxable properties within its boundaries without limit as to rate or amount to make up any deficiency. 2 353 RATING General obligation debt of the City, with the exception of any outstanding credit enhanced issues, is currently rated "AAA"/Stable outlook by S&P Global Ratings ("S&P"). The City has requested an underlying rating on the Bonds from S&P, and bidders will be notified as to the assigned rating prior to the sale. Such rating reflects only the views of such organization and explanations of the significance of such rating may be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that such rating will continue for any given period of time or that it will not be revised downward or withdrawn entirely by such rating agency, if in the judgment of such rating agency circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. Such rating is not to be construed as a recommendation of the rating agency to buy, sell or hold the Bonds, and the rating assigned by the rating agency should be evaluated independent ly. Except as may be required by the Disclosure Undertaking described under the heading "CONTINUING DISCLOSURE" neither the City nor the underwriter undertake responsibility to bring to the attention of the owner of the Bonds any proposed changes in or withdrawal of such rating or to oppose any such revision or withdrawal. CONTINUING DISCLOSURE In order to assist brokers, dealers, and municipal securities dealers, in connection with their participation in the offering of the Bonds, to comply with Rule 15c2-12 promulgated by the Securities and Exchange Commission, pursuant to the Securities and Exchange Act of 1934, as amended (the "Rule"), the City shall agree to provide certain information to the Municipal Securities Rulemaking Board ("MSRB") through its Electronic Municipal Market Access ("EMMA") system, or any system that may be prescribed in the future. The Rule was last amended, effective February 27, 2019, to include an expanded l ist of material events. On the date of issue and delivery, the City shall execute and deliver a Continuing Disclosure Certificate, under which the City will covenant for the benefit of holders including beneficial holders, to provide electronically, or in a manner otherwise prescribed, certain financial information annually and to provide notices of the occurrence of certain events enumerated in the Rule (the "Disclosure Undertaking"). The details and terms of the Disclosure Undertaking for the City are set forth in Appendix D. Such Disclosure Undertaking will be in substantially the form attached hereto. A failure by the City to comply with any Disclosure Undertaking will not constitute an event of default on the Bonds. However, such a f ailure may adversely affect the transferability and liquidity of the Bonds and t heir market price. In the previous five years, the City believes it has not failed to comply in all material respects with its prior undertakings under the Rule. The City has reviewed its continuing disclosure responsibilities along with any changes to the Rule, to ensure compliance. Ehlers is currently engaged as dissemination agent for the City. LEGAL OPINION An opinion as to the validity of the Bonds and the exemption from taxation of the interest thereon will be furnished by Taft Stettinius & Hollister LLP, Minneapolis, Minnesota, Bond Counsel to the City ("Bond Counsel"), and will be available at the time of delivery of the Bonds. The legal opinion will state that the Bonds are valid and binding general obligations of the City; provided that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding). See 3 354 "FORM OF LEGAL OPINION" found in Appendix B. By expressing its opinion, Bond Counsel is expressing its professional judgment and does not become an insurer or guarantor of the result indicated by that expression of professional judgment or of the transaction or the future performance of the parties to the transaction. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding the applicability of any such state and local taxes. By expressing its opinion, Bond Counsel is expressing its professional judgment and does not become an insurer or guarantor of the result indicated by that expression of professional judgment or of the transaction or the future performance of the parties to the transaction. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding the applicability of any such state and local taxes. STATEMENT REGARDING BOND COUNSEL PARTICIPATION Bond Counsel has neither been engaged nor undertaken to prepare or independently verify the accuracy of any portion of the Official Statement, including the financial or operational information of the Issuer and risks associated with the purchase of the Bonds, except for statements under "TAX EXEMPTION" herein that summarize certain provisions of the Internal Revenue Code of 1986, as amended, the Bonds and any opinion rendered by Bond Counsel. Bond Counsel has prepared the form of legal opinion attached hereto as "APPENDIX B – FORM OF LEGAL OPINION." TAX EXEMPTION On the date of issuance of the Bonds, Taft Stettinius & Hollister LLP, Bond Counsel , will render an opinion, that, based on present federal and Minnesota laws, regulations, rulings and decisions, at the time of the issuance of the Bonds, the interest on the Bonds is excluded from gross income for federal income tax purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions). Interest on the Bonds is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals or for purposes of the Minnesota alternative minimum tax applicable to individuals, estates or trusts; however, interest on the Bonds is taken into account in determining "annual adjusted financial statement income" for the purpose of computing the federal alternative minimum tax imposed on certain corporations. The opinions are subject to the condition that the City complies with all applicable federal tax requirements. Failure to comply with certain of such requirements may cause interest on the Bonds to be included in gross income and taxable net income, retroactive to their date of issuance. No opi nion will be expressed by Bond Counsel regarding other state or federal tax consequences. 4 355 Other Federal and State Tax Considerations Other Tax Considerations Though excluded from gross income, interest on the Bonds is subject to federal income taxation for certain types of taxpayers and certain income taxes, including without implied limitation, taxation to the extent it is included as part of (a) the adjusted current earnings of a corporation for purposes of the alternative minimum tax, (b) effectively connected earnings and profits of a foreign corporation for purposes of the branch profits tax on dividend equivalent amounts, (c) excess net passive income of an S Corporation which has Subchapter C earnings and profits, or (d) minimum effectively connected net investment income of a foreign insurance company. Interest on the Bonds is also taken into account in other ways for federal income tax purposes, including without implied limitation, (a) reducing loss reserve deductions of property and casualty insurance companies, (b) reducing interest expense deduct ions of financial institutions, and (c) causing certain taxpayers to include in gross income a portion of social security benefits and railroad retirement benefits. Ownership of the Bonds may result in other collateral federal income tax consequences to certain taxpayers. Bond Counsel expresses no opinion as to any of such consequences, and prospective purchasers who may be subject to such col lateral consequences shoul d consult their tax advisers. Original Issue Discount Some of the Bonds ("the OID Bonds") may be sold at initial public offering prices which are less than the principal amounts payable at maturity. For each maturity of OID Bonds, original issue discount is the excess of the stated redemption price at maturity of such Bonds over the initial offering price to the public, excluding underwriters and other intermediaries, at which price a substantial amount of such Bonds are sold. The appropriate portion of such original issue discount allocable to the original and each subsequent holder will be treated as interest and excluded from gross income for federal income tax purposes and will increase a holders’ tax basis in such Bonds for purposes of determining gain or loss upon sale, exchange, redemption, or payment at maturity. Owners of such Bonds should consult their own tax advisors with respect to the computation and determination of the portion of original issue discount which will be treated as interest and added to a holder’s tax basis during the period such Bonds ar e held. Original Issue Premium Some of the Bonds may be sold at initial public offering prices which are greater than the principal amounts payable at maturity. Bondholders who acquire Bonds at a premium should consult their tax advisors concerning the calculation of bond premium and the timing and rate of premium amortization, as well as the federal, state and local tax consequences of owning and selling Bonds acqui red at a premium. Proposed Changes i n Federal and State Tax Law From time to time, there are Presidential proposals, proposals of various federal committees, and legislative proposals in the Congress and in the states that, if enacted, could alter or amend the federal and state tax matters referred to herein or adversely affect the marketability or market value of the Bonds or otherwise prevent holders of the Bonds from realizing the full benefit of the tax exemption of interest on the Bonds. Further, such proposals may impact the marketability or market value of the Bonds simply by being proposed. No prediction is made whether such provisions will be enacted as proposed or concerning other future legislation affecting the tax treatment of interest on the Bonds. In addition, regulatory actions are from time to time announced or proposed and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely affect the market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds would be impacted thereby. 5 356 The above is not a comprehensive list of all federal tax consequences that may arise from the receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the federal or State of Minnesota income tax liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. NON-QUALIFIED TAX-EXEMPT OBLIGATIONS The City will NOT designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code, relating to the ability of certain financial institutions (within the meaning of Section 265(6)(5) of the Code) to deduct from income for federal income tax purposes, 80% of the interest expense that is allocable to carrying and acquiring tax-exempt obligations. MUNICIPAL ADVISOR Ehlers has served as municipal advisor to the City in connection with the issuance of the Bonds. The Municipal Advisor cannot participate in the underwriting of the Bonds. The financial information included in this Preliminary Official Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. Ehlers is not a firm of certified public accountants. Ehlers is registered with the Securities and Exchange Commission and the MSRB as a municipal advisor. Ehlers makes no representation, warranty or guarantee regarding the accuracy or completeness of the information in this Preliminary Official Statement, and its assistance in preparing this Preliminary Official Statement should not be construed as a representation that it has independent ly verified such i nformation. MUNICIPAL ADVISOR AFFILIATED COMPANIES BTSC and Ehlers Investment Partners, LLC ("EIP") are affiliate companies of Ehlers. BTSC is chartered by the State of Minnesota and authorized in Minnesota, Wisconsin, Colorado, and Illinois to transact the business of a limited purpose trust company. BTSC provides paying agent services to debt issuers. EIP is a Registered Investment Advisor with the Securities and Exchange Commission. EIP assists issuers with the investment of bond proceeds or investing other issuer funds. This includes escrow bidding agent services. Issuers, such as the City, have retained or may retain BTSC and/or EIP to provide these services. If hired, BTSC and/or EIP would be retained by the City under an agreement separate from Ehlers. INDEPENDENT AUDITORS The basic financial statements of the City for the fiscal year ended December 31, 2024, have been audited by Abdo, Minneapolis, Minnesota, independent auditors (the "Auditor"). The report of the Auditor, together with the basic financial statements, component units financial statements, and notes to the financial statements are attached hereto as "APPENDIX A - FINANCIAL STATEMENTS". The Auditor has not been engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. The Auditor also has not performed any procedures relating to this Preliminary Official Statement. 6 357 RISK FACTORS The following is a description of possible risks to holders of the Bonds without weighting as to probability. This description of risks is not intended to be all-inclusive, and there may be other risks not now perceived or listed here. Taxes: The Bonds will be general obligations of the City, the ultimate payment of which rests in the City's ability to levy and collect sufficient taxes to pay debt service should other revenue (sales tax revenues) be insufficient. In the event of delayed billing, collection or distribution of property taxes, sufficient funds may not be available to the City in time to pay debt service when due. State Actions: Many elements of local government finance, including the issuance of debt and the levy of property taxes, are controlled by state government. Future actions of the State of Minnesota (the "State") may affect the overall financial condition of the City, the taxable value of property within the City, and the ability of the City to levy and collect property taxes. Future Changes in Law: Various State and federal laws, regulations and constitutional provisions apply to the City and to the Bonds. The City can give no assurance that there will not be a change in or interpretation of any such applicable laws, regulations and provisions which would have a material effect on the City or the taxing authority of the City. Ratings; Interest Rates: In the future, the City's credit rating may be reduced or withdrawn, or interest rates for this type of obligation may rise generally, either possibility resulting in a reduction in the value of the Bonds for resale prior to maturity. Tax Exemption: If the federal government or the State of Minnesota taxes all or a portion of the interest on municipal obligations, directly or indirectly, or if there is a change in federal or state tax policy, the value of the Bonds may fall for purposes of resale. Noncompliance following the issuance of the Bonds with certain requirements of the Code and covenants of the Award Resolution may result in the inclusion of interest on the Bonds in gross income of the recipient for United States income tax purposes or in taxable net income of individuals, estates or trusts for State of Minnesota income tax purposes. No provision has been made for redemption of the Bonds, or for an increase in the interest rate on the Bonds, in the event that interest on the Bonds becomes subject to federal or State of Minnesota income taxation, retroactive to the date of issuance. Continuing Disclosure: A failure by the City to comply with the Disclosure Undertaking for continuing disclosure (see "CONTINUING DISCLOSURE") will not constitute an event of default on the Bonds. Any such failure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Such a failure may adversely affect the transferability and liquidity of the Bonds and t heir market price. Levy Limits: The State Legislature has periodically imposed limitations on the ability of municipalities to levy property taxes. While these limitations have expired, the potential exists for future legislation to limit the ability of local governments to levy property taxes. All previous limitations have not limited the ability to levy for the payment of debt service on bonded indebtedness. For more detailed information about Minnesota levy limits, contact the Minnesota Department of Revenue or Ehlers and Associates. State Economy; State Aids: State of Minnesota cash flow problems could affect local governments and possibly increase property taxes. 7 358 Book-Entry-Only System: The timely credit of payments for principal and interest on the Bonds to the accounts of the Beneficial Owners of the Bonds may be delayed due to the customary practices, standing instructions or for other unknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices to holders of these obl igations will be delivered by the City to DTC only, there may be a delay or failure by DTC, DTC participants or indirect participants to notify the Beneficial Owners of the Bonds. Economy: A combination of economic, climatic, political or civil disruptions or terrorist actions outside of the control of the City, including loss of major taxpayers or major employers, could affect the local economy and result in reduced tax collections and/or increased demands upon local government. Real or perceived threats to the financial stability of the City may have an adverse effect on the value of the Bonds in the secondar y market. Secondary Market for the Bonds: No assurance can be given that a secondary market will develop for the purchase and sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. The underwriters are not obligated to engage in secondar y market trading or to repurchase any of the Bonds at the request of the owners thereof. Prices of the Bonds as traded in the secondary market are subject to adjustment upward and downward in response to changes in the credit markets and other prevailing circumstances. No guarantee exists as to the future market value of the Bonds. Such market value could be substantially different from the original purchase price. Bankruptcy: The rights and remedies of the holders may be limited by and are subject to the provisions of federal bankruptcy laws, to other laws, or equitable principles that may affect the enforcement of creditors’ rights, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments. The opinion of Bond Counsel to be delivered with respect to the Bonds will be similarly qualified. Cybersecuri ty: The City is dependent on electronic information technology systems to deliver services. These systems may contain sensitive information or support critical operational functions which may have value for unauthorized purposes. As a result, the electronic systems and networks may be targets of cyberattack. There can be no assurance that the City will not experience an information technology breach or attack with financial consequences t hat could have a material adverse impact. The foregoing is intended only as a summary of certain risk factors attendant to an investment in the Bonds. In order for potential investors to identify risk factors and make an informed investment decision, potential investors should be thoroughly familiar with this entire Preliminary Official Statement and the Appendi ces hereto. 8 359 VALUATIONS OVERVIEW All non-exempt property is subject to taxation by local taxing districts. Exempt real property includes Indian lands, public property, and educational, religious and charitable institutions. Most personal property is exempt from taxation (except investor-owned utility mains, generating plants, etc.). The valuation of property in Minnesota consists of three elements. (1) The estimated market value is set by city or county assessors. Not less than 20% of all real properties are to be appraised by local assessors each year. (2) The taxable market value is the estimated market value adjusted by all legislative exclusions. (3) The tax capacity (taxable) value of property is determined by class rates set by the State Legislature. The tax capacity rate varies according to the classification of the property. Tax capacity represents a percent of taxable market value. The property tax rate for a local taxing jurisdiction is determined by dividing the total tax capacity or market value of property within the jurisdiction into the dollars to be raised from the levy. State law determines whether a levy is spread on tax capacity or market value. Major classifications and the percentages by which tax capacity is determined are: Type of Property 2022/23 2023/24 2024/25 Residential homestead1 First $500,000 - 1.00% Over $500,000 - 1.25% First $500,000 - 1.00% Over $500,000 - 1.25% First $500,000 - 1.00% Over $500,000 - 1.25% Agricultural homestead1 First $500,000 HGA - 1.00% Over $500,000 HGA - 1.25% First $1,890,000 - 0.50% 2 Over $1,890,000 - 1.00% 2 First $500,000 HGA - 1.00% Over $500,000 HGA - 1.25% First $2,150,000 - 0.50% 2 Over $2,150,000 - 1.00% 2 First $500,000 HGA - 1.00% Over $500,000 HGA - 1.25% First $3,500,000 - 0.50% 2 Over $3,500,000 - 1.00% 2 Agricultural non-homestead Land - 1.00% 2 Land - 1.00% 2 Land - 1.00% 2 Seasonal recreational residential First $500,000 - 1.00% 3 Over $500,000 - 1.25% 3 First $500,000 - 1.00% 3 Over $500,000 - 1.25% 3 First $500,000 - 1.00% 3 Over $500,000 - 1.25% 3 Residential non-homestead:1 unit - 1st $500,000 - 1.00% Over $500,000 - 1.25% 2-3 units - 1.25% 4 or more - 1.25% Small City4 - 1.25% Affordable Rental: First $174,000 - .75% Over $174,000 - .25% 1 unit - 1st $500,000 - 1.00% Over $500,000 - 1.25% 2-3 units - 1.25% 4 or more - 1.25% Small City 4 - 1.25% Affordable Rental: First $100,000 - .75% Over $100,000 - .25% 1 unit - 1st $500,000 - 1.00% Over $500,000 - 1.25% 2-3 units - 1.25% 4 or more - 1.25% Small City 4 - 1.25% Affordable Rental - .25% Industrial/Commercial/Utility5 First $150,000 - 1.50% Over $150,000 - 2.00% First $150,000 - 1.50% Over $150,000 - 2.00% First $150,000 - 1.50% Over $150,000 - 2.00% 1 A residential property qualifies as "homestead" if it is occupied by the owner or a relative of the owner on the assessment date. 2 Applies to land and buildings. Exempt from referendum market value tax. 3 Exempt from referendum market value tax. 4 Cities of 5,000 population or less and located entirely outside the seven-county metropolitan area and the adjacent nine-county area and whose boundaries are 15 miles or more from the boundaries of a Minnesota city with a population of over 5,000. 5 The estimated market value of utility property is determined by the Minnesota Department of Revenue. 9 360 CURRENT PROPERTY VALUATIONS 2024/25 Economic Market Value $6,844,634,9451 2024/25 Assessor's Estimated Market Value Carver County Hennepin County Total Real Estate $6,190,101,100 $123,226,000 $6,313,327,100 Personal Property 25,166,600 600,700 25,767,300 Total Valuation $6,215,267,700 $123,826,700 $6,339,094,400 2024/25 Net Tax Capacity Carver County Hennepin County Total Real Estate $71,213,714 $2,455,520 $73,669,234 Personal Property 502,500 12,014 514,514 Net Tax Capacity $71,716,214 $2,467,534 $74,183,748 Less: Captured Tax Increment Tax Capacity2 (577,718)0 (577,718) Fiscal Disparities Contribution3 (5,120,198)(949,367)(6,069,565) Taxable Net Tax Capacity $66,018,298 $1,518,167 $67,536,465 Plus: Fiscal Disparities Distribution3 3,108,983 0 3,108,983 Adjusted Taxable Net Tax Capacity $69,127,281 $1,518,167 $70,645,448 1 According to the Minnesota Department of Revenue, the Assessor's Estimated Market Value (the "AEMV") for the portion of the City located in Carver County was about 92.57% and the portion located in Hennepin County was abut 96.72% of the actual selling prices of property most recently sold in the City. The sales ratio was calculated by comparing the selling prices with the AEMV. Dividing the AEMV of real estate by the sales ratio and adding the AEMV of personal property and utility, railroads and minerals, if any, results in an Economic Market Value ("EMV") for the City of $6,844,634,945. 2 The captured tax increment value shown above represents the captured net tax capacity of tax increment financing districts in the City. 3 Each community in the seven-county metropolitan area contributes 40% of the growth in its commercial- industrial property tax base to an area pool which is then distributed among the municipalities on the basis of population, special needs, etc. Each governmental unit makes a contribution and receives a distribution-- sometimes gaining and sometimes contributing net tax capacity for tax purposes. 10 361 2024/25 NET TAX CAPACITY BY CLASSIFICATION 2024/25 Net Tax Capacity Percent of Total Net Tax Capacity Residential homestead $46,573,461 62.78% Agricultural 111,559 0.15% Commercial/industrial 15,759,002 21.24% Public Utility 4,752 0.01% Railroad operating property 17,654 0.02% Non-homestead residential 11,091,197 14.95% Commercial & residential seasonal /rec.111,609 0.15% Personal property 514,514 0.69% Total $74,183,748 100.00% TREND OF VALUATIONS Levy Year Assessor's Estimated Market Value Assessor's Taxable Market Value Net Tax Capacity1 Adjusted Taxable Net Tax Capacity2 Percent Increase/Decrease in Estimated Market Value 2020/21 $4,957,377,600 $4,868,292,100 $57,248,210 $54,692,237 2.42% 2021/22 5,121,446,500 5,041,556,300 59,136,437 56,569,147 3.31% 2022/23 5,953,805,400 5,886,580,500 36,162,253 66,377,962 16.25% 2023/24 6,189,048,100 6,127,185,500 72,425,776 69,101,884 3.95% 2024/25 6,339,094,400 6,242,269,200 74,183,748 70,645,448 2.42% 1 Net Tax Capacity is before fiscal disparity contributions and includes tax increment values. 2 Taxable Net Tax Capacity is after fiscal disparity distributions and does not include tax increment values. 11 362 LARGER TAXPAYERS AND TAXPAYING PARCELS1 Taxpayer Type of Property 2024/25 Net Tax Capacity Percent of City's Total Net Tax Capacity Nicola Dell5, LP, et. al Industrial $1,249,600 1.68% LTF Real Estate Company, Inc.Commercial 1,061,850 1.43% Istar Minnesota LLC Commercial 607,246 0.82% IPX West Village Station LLC Commercial 457,340 0.62% Rosemount Commercial 432,342 0.58% Lake Susan Apartment Homes LLC Rental 366,250 0.49% 8610 LLP Commercial 350,266 0.47% Chanhassen Frontier LLC Commercial 346,369 0.47% Centerpoint Energy Minnegasco Utility 312,922 0.42% Xcel Energy Utility 308,786 0.42% Total $5,492,971 7.40% City's Total 2024/25 Net Tax Capacity $74,183,748 Source:Current Property Valuations, Net Tax Capacity by Classification, Trend of Valuations and Larger Taxpayers and Taxpaying Parcels have been furnished by Carver and Hennepi n Counties. DEBT DIRECT DEBT2 General Obligation Debt (see schedule following) Total G.O debt secured by taxes $26,460,000 Total G.O. debt secured by utility revenues $17,710,000 Total General Obligation Debt $44,170,000 1 Hennepin County has provided only the ten largest taxpaying parcels which appear on the tax rolls of the County, and therefore the information state above may not be reflective of the entire valuation of all parcels and may not include all classifications of property. 2 Outstanding debt is as of the dated date of the Bonds. 12 363 Temporary General Obligation Debt Issue Date Name of Issue Final Maturity Principal Outstanding 4/17/25 G.O. Temporary Sales Tax Revenue Bonds (includes the Bonds)*2/1/28 $13,185,000 *Preliminary, subject to change. Other Obligations - General Obligation Housing Revenue Debt Issue Date Original Amount Name of Issue Final Maturity Principal Outstanding 8/28/14 $2,370,000 Taxable Housing Development & Refunding Bonds, Series 2014T1 1/1/34 $2,370,000 DEBT PAYMENT HISTORY The City has no record of default in the payment of principal and interest on its debt. FUTURE FINANCING The City anticipates issuing approximately $10,000,000 in General Obligation Bonds for the Park amenities portion of the new Civic Campus in the summer of 2025. 1 The City pledged its full faith and credit and taxing powers to the payment of debt service on the Series 2014T bonds issued by the Carver County CDA. In the envent the CDA is unable to pay the debt service on the bonds due to insufficient housing revenues and cash r eserves, the City is obligated to pay the debt service. 13 364 DEBT LIMIT The statutory limit on net debt of Minnesota municipalities other than school districts or cities of the first class (Minnesota Statutes, Section 475.53, subd. 1, as amended) is 3% of the Assessor's Estimated Market Value of all taxable property within its boundaries. "Net debt" means the amount remaining after deducting from gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregate principal of certain obligations enumerated under Minnesota Statutes, Section 475.51, subd.4, including the following: (1) obligations issued for improvements payable wholly or partly from special assessments levied against benefitted property; (2) warrants or orders having no definite or fixed maturity; (3) obligations payable wholly from the income of revenue producing conveniences; (4) obligations issued to create or maintain a permanent improvement revolving fund; (5) obligations issued to finance any revenue producing public convenience; (6) funds held as sinking funds for payment of principal and interest on debt other than those deductible under Minnesota Statutes, Section 475.51, subd. 4, as amended; (7) obligations to repay energy conservation investment loans under Minnesota Statutes, Section 216C.37; (8) obligations issued to pay certain postemployment benefit liabilities; (9) obligations issued to pay certain judgments against the City; and (10) all other obligations which are not to be included in computing the net debt of a municipality under the provisions of the law authorizing their issuance (includes the Bonds). 2024/25 Assessor's Estimated Market Value $6,339,094,400 Multiply by 3%0.03 Statutory Debt Limit $190,172,832 Less: Long-Term Debt Outstanding Being Paid Solely from Taxes1 (26,460,000) Unused Debt Limit $163,712,832 1 Does not include the Bonds of this offering, as they are not subject to the debt limit calculation per Minnesota Statutes. 14 365 City of Chanhassen, MinnesotaSchedule of Bonded IndebtednessGeneral Obligation Debt Secured by Taxes(As of 06/26/2025)328347 329834342410 358272DatedAmountMaturityCalendar Year Ending Principal Interest Principal Interest Total Principal Total Interest Total P & IPrincipal Outstanding % PaidCalendar Year Ending20250 22,1000 1,012,0020 1,034,102 1,034,102 26,460,000 .00%20252026420,000 40,0000 1,052,950420,000 1,092,950 1,512,950 26,040,000 1.59%20262027430,000 31,50080,000 1,050,950510,000 1,082,450 1,592,450 25,530,000 3.51%20272028440,000 22,80080,000 1,046,950520,000 1,069,750 1,589,750 25,010,000 5.48%20282029455,000 13,85080,000 1,042,950535,000 1,056,800 1,591,800 24,475,000 7.50%20292030465,0004,65085,000 1,038,825550,000 1,043,475 1,593,475 23,925,000 9.58%20302031560,000 1,022,700560,000 1,022,700 1,582,700 23,365,000 11.70%20312032590,000 993,950590,000 993,950 1,583,950 22,775,000 13.93%20322033620,000 963,700620,000 963,700 1,583,700 22,155,000 16.27%20332034650,000 931,950650,000 931,950 1,581,950 21,505,000 18.73%20342035680,000 898,700680,000 898,700 1,578,700 20,825,000 21.30%20352036715,000 863,825715,000 863,825 1,578,825 20,110,000 24.00%20362037750,000 827,200750,000 827,200 1,577,200 19,360,000 26.83%20372038790,000 788,700790,000 788,700 1,578,700 18,570,000 29.82%20382039830,000 748,200830,000 748,200 1,578,200 17,740,000 32.96%20392040870,000 705,700870,000 705,700 1,575,700 16,870,000 36.24%20402041915,000 661,075915,000 661,075 1,576,075 15,955,000 39.70%20412042960,000 619,000960,000 619,000 1,579,000 14,995,000 43.33%204220431,000,000 579,800 1,000,000 579,800 1,579,800 13,995,000 47.11%204320441,040,000 539,000 1,040,000 539,000 1,579,000 12,955,000 51.04%204420451,080,000 496,600 1,080,000 496,600 1,576,600 11,875,000 55.12%204520461,120,000 452,600 1,120,000 452,600 1,572,600 10,755,000 59.35%204620471,165,000 406,900 1,165,000 406,900 1,571,900 9,590,000 63.76%204720481,215,000 359,300 1,215,000 359,300 1,574,300 8,375,000 68.35%204820491,265,000309,7001,265,000 309,700 1,574,700 7,110,000 73.13%204920501,315,000 258,100 1,315,000 258,100 1,573,100 5,795,000 78.10%205020511,365,000 204,500 1,365,000 204,500 1,569,500 4,430,000 83.26%205120521,420,000 148,800 1,420,000 148,800 1,568,800 3,010,000 88.62%205220531,475,00090,900 1,475,00090,900 1,565,900 1,535,000 94.20%205320541,535,00030,700 1,535,00030,700 1,565,7000 100.00%20542,210,000 134,900 24,250,000 20,146,227 26,460,000 20,281,127 46,741,1271) This represents the $4,805,000 Series 2008A Refunding portion of the $6,370,000 General Obligation Bonds, Series 2016A.G.O. Bonds 1)Series 2016A03/03/2016$4,805,00002/01Capital Improvement Plan BondsSeries 2024A08/15/2024$24,250,00002/0115366 City of Chanhassen, MinnesotaSchedule of Bonded IndebtednessGeneral Obligation Debt Secured by Utility Revenues(As of 06/26/2025)328347 329833329292 331606329293 331607331342 334201335334341792DatedAmountMaturityCalendar Year Ending Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Total Principal Total Interest Total P & IPrincipal Outstanding % PaidCalendar Year Ending202501,7500 69,1190 132,1500 24,7500 47,0500 274,819274,81917,710,000.00%20252026175,0001,7500 138,238170,000260,900310,00044,850620,00084,8001,275,000530,5381,805,53816,435,0007.20%202620270 138,238595,000248,575 320,00035,400635,00065,975 1,550,000488,1882,038,18814,885,00015.95%202720280 138,238615,000230,425 330,00025,650655,00046,625 1,600,000440,9382,040,93813,285,00024.99%202820290 138,238635,000211,675 340,00015,600675,00030,0501,650,000395,563 2,045,56311,635,00034.30%202920300 138,238655,000192,325 350,0005,250685,00016,4501,690,000352,263 2,042,2639,945,00043.85%203020310 138,238670,000172,450480,0004,8001,150,000315,4881,465,4888,795,00050.34%203120320 138,238690,000152,050690,000290,288980,2888,105,00054.23%203220330 138,238715,000130,975715,000269,213 984,213 7,390,00058.27%203320340 138,238735,000109,225735,000247,463 982,463 6,655,00062.42%203420350 138,238755,00086,875755,000225,113 980,113 5,900,00066.69%203520360 138,238780,00063,850780,000202,088982,0885,120,00071.09%203620370 138,238800,00038,150800,000176,388976,3884,320,00075.61%20372038140,000135,788690,00012,075830,000147,863 977,863 3,490,00080.29%20382039825,000118,900825,000118,900943,9002,665,00084.95%20392040855,00088,431855,00088,431 943,431 1,810,00089.78%20402041885,00054,700885,00054,700939,700925,00094.78%20412042925,00018,500925,00018,500943,5000 100.00%2042175,0003,5003,630,0002,144,2888,505,0002,041,7001,650,000151,5003,750,000295,75017,710,0004,636,73822,346,7381)This represents the $1,565,000 Water Projects portion of the $6,370,000 General Obligation Bonds, Series 2016A.G.O. Bonds 1)Series 2016A03/03/2016$1,565,00002/01Water Revenue BondsSeries 2016B12/29/2016$3,630,00002/01Water Revenue BondsSeries 2017A02/01/2017$10,000,00002/01Water Revenue BondsSeries 2018A03/15/2018$3,595,00002/01Utility Revenue BondsSeries 2020A04/02/2020$6,220,00002/0116367 Carver County Community Development Authority, MinnesotaSchedule of Bonded IndebtednessGeneral Obligation Debt Secured by Housing Revenues(As of 06/26/2025)39645330148DatedAmountMaturityCalendar Year Ending Principal Interest Total Principal Total Interest Total P & IPrincipal Outstanding % PaidCalendar Year Ending2025044,824044,82444,824 2,370,000 .00%20252026230,00085,853230,00085,853 315,853 2,140,000 9.70%20262027235,00078,004235,00078,004 313,004 1,905,000 19.62%20272028245,00069,540245,00069,540 314,540 1,660,000 29.96%20282029250,00060,505250,00060,505 310,505 1,410,000 40.51%20292030260,00050,940260,00050,940 310,940 1,150,000 51.48%20302031270,00040,600270,00040,600 310,600 880,000 62.87%20312032280,00029,600280,00029,600 309,600 600,000 74.68%20322033295,00018,100295,00018,100 313,100 305,000 87.13%20332034305,0006,100305,0006,100 311,1000 100.00%20342,370,000 484,065 2,370,000 484,065 2,854,0651) The City pledged its full faith and credit and taxing powers to the payment of debt service on the Series 2014T bonds issued by the CarverCounty CDA. In the event the CDA is unable to pay the debt service on the bonds due to insufficient housing revenues and cash reserves, theCity is obligated to pay the debt service.Taxable Housing Dev. & Refunding Bonds 1)Series 2014T08/28/2014$2,370,00001/0117368 OVERLAPPING DEBT1 Taxing District 2024/25 Adjusted Taxable Net Tax Capacity % In City Total G.O. Debt2 City's Proportionate Share Carver County $242,582,777 28.4964%$11,765,000 $3,352,601 Hennepin County 2,859,451,218 0.0531%1,211,355,000 3 643,230 I.S.D. No. 112 (Eastern Carver County Schools)143,267,973 33.5430%154,823,000 4 51,932,279 I.S.D. No. 272 (Eden Prairie Schools)154,500,106 0.9826%101,235,000 4 994,735 I.S.D. No. 276 (Minnetonka Public Schools)157,135,663 13.4093%120,650,000 4 16,178,320 Metropolitan Council 6,330,160,332 0.0240%159,410,000 5 38,258 Three Rivers Park District 2,052,772,775 0.0732%49,625,000 36,326 City's Share of Total Overlapping Debt $73,175,749 1 Overlapping debt is as of the dated date of the Bonds. Only those taxing jurisdictions with general obligation debt outstanding are included in this section. It does not include non-general obligation debt, self-supporting general obligation revenue debt, short-term general obligation debt, or general obligation tax/aid anticipation certificates of indebtedness. 2 Outstanding debt is based on information in Official Statements obtained on EMMA and the Municipal Advisor's records. 3 Hennepin County also has General Obligation Sales Tax Revenue Bonds (Ballpark Project) outstanding which are payable entirely from the proceeds of a dedicated 0.15% county-wide sales tax; and General Obligation Sales Tax Revenue Bonds (Transportation Sales Tax) which are expect ed to be paid from a 0.50% sales and use tax and a $20 per vehicle excise taxes. These issues have not been included in the overlapping debt or debt ratios. 4 Minnesota School Districts may qualify for aid from the State of Minnesota through the Debt Service Equalization Formula, School Building Bond Agricultural Credit and Long Term Facilities Maintenance Revenue programs. While some of the districts listed may receive these aids, Ehlers has not attempted to estimate the portion of debt service payments that would be financed by state aids for the purposes of the Bonds. 5 The above debt includes all outstanding general obligation debt supported by taxes of the Metropolitan Council. The Council also has general obligation wastewater revenue, grant anticipation notes and certificates of participation outstanding all of which are supported entirely by revenues and have not been included in the overlapping debt or debt ratios sections. 18 369 DEBT RATIOS G.O. Debt Debt/Economic Market Value $6,844,634,945 Debt/ Per Capita 25,8071 Direct G.O. Debt Secured By: Taxes $26,460,000 Utility Revenues 17,710,000 Total General Obligation Debt $44,170,000 Less: G.O. Debt Paid Entirely from Revenues2 (17,710,000) Tax Supported General Obligation Debt $26,460,000 0.39%$1,025.30 City's Share of Total Overlapping Debt 73,175,749 1.07%$2,835.50 Total $99,635,749 1.46%$3,860.80 TAX RATES, LEVIES AND COLLECTIONS TAX LEVIES AND COLLECTIONS Tax Year Net Tax Levy3 Total Collected Following Year Collected to Date % Collected 2020/21 $12,094,645 $12,013,235 $12,094,644 99.999% 2021/22 12,654,758 12,614,877 12,652,529 99.982% 2022/23 13,433,491 13,397,330 13,426,457 99.948% 2023/24 14,431,310 14,380,338 14,380,338 99.647% 2024/25 15,369,679 In process of collection Property taxes are collected in two installments in Minnesota--the first by May 15 and the second by October 15.4 Mobile home taxes are collectible in full by August 31. Minnesota Statutes require that levies (taxes and special assessments) for debt service be at least 105% of the actual debt service requirements to allow for delinquencies. 1 Estimated 2023 population. 2 Debt service on the City's general obligation revenue debt is being paid entirely from revenues and therefore is considered self-supporting debt. 3 This reflects the Final Levy Certification of the District after all adjustments have been made. 4 Second half tax payments on agricultural property are due on November 15th of each year. 19 370 TAX CAPACITY RATES1 2020/21 2021/22 2022/23 2023/24 2024/25 Carver County 34.634%34.170%29.267%30.106%30.934% Hennepin County 38.210%38.535%34.542%34.681%37.081% City of Chanhassen (rural)16.805%17.025%15.327%15.922%16.727% City of Chanhassen (urban)22.114%22.415%20.195%20.956%21.800% I.S.D. No. 112 (Eastern Carver County Schools)32.327%31.220%27.747%28.660%27.552% I.S.D. No. 272 (Eden Prairie Schools)21.710%20.995%19.243%19.670%20.732% I.S.D. No. 276 (Minnetonka Public Schools)20.167%21.002%17.720%17.823%19.943% Carver County CDA 1.664%1.635%1.396%1.449%1.480% Carver County RRA 0.099%0.110%0.088%0.091%0.094% Carver County WMO 0.875%0.859%0.731%0.746%0.758% Hennepin County HRA 0.722%0.771%0.663%0.624%0.797% Hennepin County RRA 1.323%1.329%1.188%1.153%1.205% Lower Minnesota River Watershed #1 0.506%0.472%0.417%0.686%0.673% Metropolitan Council (portion applicable to Carver County)0.628%0.637%0.544%0.649%0.538% Metropolitan Council (portion applicable to Hennepin County)0.631%0.659%0.576%0.614%0.567% Metropolitan Mosquito (portion applicable to Carver County)0.382%0.365%0.313%0.331%0.312% Metropolitan Mosquito (portion applicable to Hennepin County)0.381%0.377% 0.331%0.312%0.328% Metropolitan Transit (portion applicable to Carver County)1.261%1.169%1.036%1.000%0.988% Metropolitan Transit (portion applicable to Hennepin County)1.256%1.204%1.066%0.927%1.134% Minnehaha Creek Watershed #3 1.442%1.432%1.151%1.206%1.128% Park Museum 0.707%0.722%0.647%0.694%0.744% Riley Purgatory Creek Watershed #2 2.045%1.941%1.724%1.811%1.859% Three Rivers Park District 2.793%2.787%2.473%2.399%2.471% Continued on next page 1 After reduction for state aids. Does not include the statewide general property tax against commercial/industrial, non-homestead resorts and seasonal recreational residential property. 20 371 TAX CAPACITY RATES CONTINUED1 2020/21 2021/22 2022/23 2023/24 2024/25 Referendum Market Value Rates: I.S.D. No. 112 (Eastern Carver County Schools)0.17888%0.22236%0.18991%0.17200%0.17420% I.S.D. No. 272 (Eden Prairie Schools)0.20120%0.20500%0.21642%0.20896%0.21421% I.S.D. No. 276 (Minnetonka Public Schools)0.32491%0.31225%0.30685%0.29187%0.28287% Source: Tax Levies and Collections and Tax Capacity Rates have been furnished by Carver and Hennepin Counties. THE ISSUER CITY GOVERNMENT The City was organized as a municipality in 1967. The City operates under a statutory form of government consisting of a five-member City Council of which the Mayor is a voting member. The City Manager and Finance Director are responsible for administrative details and financial records EMPLOYEES; PENSIONS; UNIONS The City currently has 85 full-time, 27 part-time, and 25 seasonal employees. All full-time and certain part-time employees of the City are covered by defined benefit pension plans administered by the Public Employee Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer retirement plans. PERA members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security. See the Notes to Financial Statements in Appendix A for a detailed description of the Plans. Recognized and Certified Bargaining Unit Bargaining Unit Expiration Date of Current Contract International Union of Operating Engineers, Local No. 49 December 31, 2025 POST EMPLOYMENT BENEFITS The City has obligations for some post-employment benefits for its employees. Accounting for these obligations is dictated by Governmental Accounting Standards Board Statement No. 75 (GASB 75). The City's most recent Annual Comprehensive Financial Report (Audit) shows a total OPEB liability of $210,955 as of December 31, 2024. The City has been f unding these obligations on a pay-as-you-go basis. Source: The City's most recent Audit. 1 After reduction for state aids. Does not include the statewide general property tax against commercial/industrial, non-homestead resorts and seasonal recreational residential property. 21 372 LITIGATION There is no litigation threatened or pending questioning the organization or boundaries of the City or the right of any of its officers to their respective offices or in any manner questioning their rights and power to execute and deliver the Bonds or otherwise questioning the validity of the Bonds. MUNICIPAL BANKRUPTCY Municipalities are prohibited from filing for bankruptcy under Chapter 11 (reorganization) or Chapter 7 (liquidation) of the U.S. Bankruptcy Code (11 U.S.C. §§ 101-1532) (the "Bankruptcy Code"). Instead, the Bankruptcy Code permits municipalities to file a petition under Chapter 9 of the Bankruptcy Code, but only if certain requirements are met. These requirements include that the municipality must be "specifically authorized" under State law to file for relief under Chapter 9. For these purposes, "State law" may include, without limitation, statutes of general applicability enacted by the State legislature, special legislation applicable to a particular municipality, and/or executive orders issued by an appropriate officer of the State's executive branch. As of the date hereof, Minnesota Statutes, Section 471.831, authorizes municipalities to file for bankruptcy relief under Chapter 9 of the Bankruptcy Code. A municipality is defined in United States Code, title 11, section 101, as amended through December 31, 1996, but limited to a county, statutory or home rule charter city, or town; or a housing and redevelopment authority, economic development authority, or rural development financing authority established under Chapter 469, a home rule charter or special law. FUNDS ON HAND (as of May 19, 2025) Fund Total Cash and Investments General $11,308,671 Special Revenue 1,421,192 Debt Service 2,060,411 Capital Projects 9,865,090 Enterprise Funds 5,650,697 Debt Service - Capitalized Interest Reserve - Civic Campus Bonds 489,657 Capital Projects - Civic Campus Bond Proceeds 12,337,030 Total Funds on Hand $43,132,748 22 373 ENTERPRISE FUNDS Revenues available for debt service on the City's enterprise funds have been as follows as of December 31 each year: 2022 Audited 2023 Audited 2024 Audited Water Total Operating Revenues $4,452,527 $5,197,230 $4,143,414 Less:Operating Expenses (6,045,175)(5,268,215)(5,493,133) Operating Income ($1,592,648)($70,985)($1,349,719) Plus:Depreciation 1,908,914 1,915,911 195,312 Connection Charges 409,646 680,763 3,038,662 Revenues Available for Debt Service $725,912 $2,525,689 $1,884,255 Sewer Total Operating Revenues $3,690,740 $3,991,372 $4,229,359 Less:Operating Expenses (5,830,016)(5,337,187)(5,815,517) Operating Income ($2,139,276)($1,345,815)($1,586,158) Plus:Depreciation 908,359 923,644 872,581 Connection Charges 263,417 239,626 834,620 Revenues Available for Debt Service ($967,500)($182,545)$121,043 Surface Water Management Total Operating Revenues $1,607,702 $1,845,241 $2,112,116 Less:Operating Expenses (3,767,726)(2,551,271)(3,850,824) Operating Income ($2,160,024)($706,030)($1,738,708) Plus:Depreciation 926,340 933,433 1,053,605 Connection Charges 135,573 711,700 164,773 Revenues Available for Debt Service ($1,098,111)$939,103 ($520,330) 23 374 SUMMARY GENERAL FUND INFORMATION COMBINED STATEMENT 2021 Audited 2022 Audited 2023 Audited 2024 Audited 2025 Adopted Budget1 Revenues General property taxes $9,483,858 $10,245,765 $10,689,452 $11,724,499 $12,090,000 Licenses and permits 2,272,079 1,556,723 1,528,524 2,221,600 1,591,000 Intergovernmental revenues 385,630 496,037 521,586 573,098 487,370 Charges for services 523,708 686,462 1,026,121 1,095,814 1,026,000 Fine and forfeits 78,673 69,173 76,295 75,887 72,000 Franchise fees 0 0 143,187 140,269 145,000 Investment income (loss) 15,664 (401,261) 467,266 397,474 325,000 Contributions and donations 21,593 20,785 0 0 22,700 Refunds and reimbursements 53,016 79,355 0 0 33,800 Other 270,832 378,092 124,955 119,541 3,000 Total Revenues $13,105,053 $13,131,131 $14,577,386 $16,348,182 $15,795,870 Expenditures General government $2,628,898 $2,839,873 $3,342,084 $3,312,119 $3,663,173 Public safety 3,821,823 4,344,716 4,820,264 5,303,287 5,769,579 Public works 2,736,052 2,373,389 2,521,038 2,807,222 3,061,950 Parks and recreation 2,086,932 2,446,503 2,752,491 2,826,840 2,927,739 Community development 590,599 595,052 651,641 584,941 703,429 Capital outlay 0 58,882 0 0 0 Total Expenditures $11,864,304 $12,658,415 $14,087,518 $14,834,409 $16,125,870 $1,240,749 $472,716 $489,868 $1,513,773 ($330,000) Other Financing Sources (Uses) Transfers in $0 $160,000 $180,000 $1,737,106 $330,000 Transfers (out) 0 (250,000) (170,000) 0 0 Total Other Financing Sources (Uses)0 (90,000) 10,000 1,737,106 330,000 $1,240,749 $382,716 $499,868 $3,250,879 $0 General Fund Balance January 1 $6,748,766 $7,989,515 $8,372,231 $8,872,099 Prior Period Adjustment 0000 General Fund Balance December 31 $7,989,515 $8,372,231 $8,872,099 $12,122,978 DETAILS OF DECEMBER 31 FUND BALANCE Nonspendable $69,953 $91,340 $63,227 $135,138 Assigned 0 657,000 797,600 4,225,000 Unassigned 7,919,562 7,623,891 8,011,272 7,762,840 Total $7,989,515 $8,372,231 $8,872,099 $12,122,978 1 The 2025 budget was adopted on December 9, 2024. Net changes in Fund Balances Excess of revenues over (under) expenditures FISCAL YEAR ENDING DECEMBER 31 The following are summaries of the revenues, expenditures and fund balances for the City's General Fund. These summaries are not purported to be the complete audited financial statements of the City, and potential purchasers should read the included financial statements in their entirety for more complete information concerning the City. Copies of the complete statements are available upon request. Appendix A includes the 2024 audited financial statements. Current: 24 375 GENERAL INFORMATION LOCATION The City, with a 2020 U.S. Census population of 25,947and a 2023 population estimate of 25,807, and comprising an area of 23.8 squar e miles, is located approximately 28 miles southwest of St. Paul, Minnesota. LARGER EMPLOYERS1 Larger employers in the City include the following: Firm Type of Business/Product Estimated No. of Employees I.S.D. No 112 (Eastern Carver County Schools)Elementary and secondary education 1,542 ABC Millwork & Cabinetry-Chanhassen Cabinetry & millwork 1,000 Bernerd Group Outdoor advertising 600 General Mills Breakfast cereal production facility 600 Emerson Measuring instruments 550 IWCO Direct Commercial printing 500 LifeTime Fitness Health club & fitness center company 350 Minnesota Landscape Arboretum Public garden 303 Chanhassen Dinner Theaters Dinner theater company 250 Retail Tech, Inc.Internet services- network designers 200 Source: Data Axle Reference Solutions, written and telephone survey, and the Minnesota Department of Employment and Economic Development. 1 This does not purport to be a comprehensive list and is based on available data obtained through a survey of individual employers, as well as the sources identified above. 25 376 BUILDING PERMITS (as of April 30, 2025) 2021 2022 2023 2024 2025 New Single Family Homes No. of building permits 98 48 35 27 3 Valuation $49,369,812 $26,521,191 $20,480,302 $18,773,751 $3,431,749 New Multiple Family Buildings No. of building permits 1 0 0 0 2 Valuation $16,100,000 $0 $0 $0 $43,200,000 New Commercial/Industrial No. of building permits 2 2 3 8 0 Valuation $2,282,000 $1,433,100 $8,620,000 $88,021,176 $0 All Building Permits (including additions and remodelings) No. of building permits 6,072 3,936 3,439 3,308 291 Valuation $160,438,828 $87,812,422 $90,564,997 $158,065,126 $16,192,456 Source:The City. U.S. CENSUS DATA Population Trend: The District 2010 U.S. Census popul ation 22,952 2020 U.S. Census popul ation 25,947 Percent of Change 2010 - 2020 13.05% 2023 Metropolitan Council Population Estimate 25,807 26 377 Income and Age Statistics The City Carver County State of Minnesota United States 2023 per capita income $71,799 $58,254 $46,957 $43,289 2023 median househol d income $138,034 $123,144 $87,556 $78,538 2023 median family income $171,968 $149,132 $111,492 $96,922 2023 median gross rent $1,749 $1,444 $1,235 $1,348 2023 median value owner occupied units $530,700 $426,900 $305,500 $303,400 2023 median age 40.9 yrs.38.9 yrs.38.6 yrs.38.7 yrs. State of Minnesota United States City % of 2023 per capita income 152.90%165.86% City % of 2023 median family income 154.24%177.43% Housing Statistics The City 2020 2023 Percent of Change All Housing Units 9,644 9,839 2.02% Source:2010 and 2020 Census of Population and Housing, and 2022 American Community Survey (Based on a five-year estimate), U.S. Census Bureau (https://data.census.gov), 2023 Population Estimates, Metropolitan Council (https://metrocouncil.org/). EMPLOYMENT/UNEMPLOYMENT DATA Rates are not compiled for individual communities within counties. Average Employment Average Unem ployment Year Carver County Carver County State of Minnesota 2021 58,310 2.9%3.7% 2022 60,587 2.0%2.5% 2023 61,341 2.4%2.8% 2024 61,559 2.6%3.0% 2025, April 61,946 2.7%3.2% Source: Minnesota Department of Employment and Economic Development. 27 378 APPENDIX A FINANCIAL STATEMENTS Potential purchasers should read the included financial statements in their entirety for more complete information concerning the City's financial position. Such financial statements have been audited by the Auditor, to the extent and for the periods indicated thereon. The City has not requested or engaged the Auditor to perform, and the Auditor has not performed, any additional examination, assessments, procedures or evaluation with respect to such financial statements since the date thereof or with respect to this Preliminary Official Statement, nor has the City requested that the Auditor consent to the use of such financial statements in this Preliminary Official Statement. Although the inclusion of the financial statements in this Preliminary Official Statement is not intended to demonstrate the fiscal condition of the City since the date of the financial statements, in connection with the issuance of the Bonds, the City represents that there have been no material adverse changes in the financial position or results of operations of the City, nor has the City incurred any material liabilities, which would make such financial statements misleading. Copies of the complete audited financial statements for the past three years and the current budget are available upon request from Ehlers. A-1 379 2024 Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 City of Chanhassen, Minnesota 380 THIS PAGE IS LEFT BLANK INTENTIONALLY 2 381 CITY OF CHANHASSEN, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024 PREPARED BY FINANCE DEPARTMENT Member of the Government Finance Officers Association of the United States and Canada 3 382 THIS PAGE IS LEFT BLANK INTENTIONALLY 4 383 City of Chanhassen, Minnesota Annual Comprehensive Financial Report Table of Contents For the Year Ended December 31, 2024 Page No. Introductory Section Letter of Transmittal from Finance Director 11 Certificate of Achievement for Excellence in Financial Reporting 17 Organization Chart 18 Elected and Appointed Officials 19 Financial Section Independent Auditor’s Report 23 Management’s Discussion and Analysis 27 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 43 Statement of Activities 44 Fund Financial Statements Governmental Funds Balance Sheet 48 Reconciliation of the Balance Sheet to the Statement of Net Position 49 Statement of Revenues, Expenditures and Changes in Fund Balances 50 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 51 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 53 Proprietary Funds Statement of Net Position 54 Statement of Revenues, Expenses and Changes in Net Position 57 Statement of Cash Flows 58 Notes to the Financial Statements 61 Required Supplementary Information Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - General Employees Retirement Plan 102 Schedule of Employer’s Public Employees Retirement Association Contributions - General Employees Retirement Plan 102 Notes to the Required Supplementary Information - General Employees Retirement Fund 103 Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability - Public Employees Police and Fire Plan 105 Schedule of Employer’s Public Employees Retirement Association Contributions - Public Employees Police and Fire Plan 105 Notes to the Required Supplementary Information - Public Employees Police and Fire Plan 106 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 108 Notes the Required Supplementary Information - Fire Relief Association 109 Schedule of Employer’s Fire Relief Association’s Contributions 110 Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 110 5 384 City of Chanhassen, Minnesota Annual Comprehensive Financial Report Table of Contents (Continued) For the Year Ended December 31, 2024 Page No. Combining and Individual Fund Financial Statements and Schedules General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual 113 Nonmajor Governmental Funds Combining Balance Sheet 120 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 121 Nonmajor Special Revenue Funds Combining Balance Sheet 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 125 Charitable Gambling Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 126 Cemetery Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 127 Cable Television Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 128 Grant Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 129 Nonmajor Debt Service Funds Combining Balance Sheet 132 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 133 2016A G.O. Refunding Bonds Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 134 Nonmajor Capital Projects Funds Combining Balance Sheet 136 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 138 Capital Equipment/Vehicle Replacement Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 140 Capital Facilities Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 141 Park Development Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 142 Transportation Infrastructure Management Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 143 Frontier Development TIF #11 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 144 Lake Place Senior Apt TIF #12 Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 145 PMP Pavement Management Capital Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 146 6 385 City of Chanhassen, Minnesota Annual Comprehensive Financial Report Table of Contents (Continued) For the Year Ended December 31, 2024 Table No. Page No. Statistical Section (Unaudited) Financial Trends Net Position by Component 1 150 Changes in Net Position 2 152 Fund Balances of Governmental Funds 3 156 Changes in Fund Balances of Governmental Funds 4 158 Revenue Capacity Tax Capacity and Estimated Market Value of Property 5 160 Property Tax Rates - Direct and Overlapping Governments 6 162 Principal Property Taxpayers 7 163 Property Tax Levies and Tax Collections 8 165 Debt Capacity Ratios of Outstanding Debt by Type 9 166 Ratios of General Bonded Debt Outstanding 10 168 Computation of Direct and Overlapping Debt 11 171 Legal Debt Margin Information 12 172 Pledged-revenue Coverage 13 174 Demographic and Economic Information Demographic and Economic Statistics 14 175 Principal Employers 15 176 Operating Information Full-time Equivalent City Government Employees by Function 16 178 Operating Indicators by Function 17 180 Capital Asset Statistics by Function 18 182 7 386 THIS PAGE IS LEFT BLANK INTENTIONALLY 8 387 INTRODUCTORY SECTION CITY OF CHANHASSEN CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 9 388 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 389 May 13, 2025 To the Citizens of the City of Chanhassen, Honorable Mayor and City Council Members, and Ms. Laurie Hokkanen, City Manager The Annual Comprehensive Financial Report of the City of Chanhassen, Minnesota (the “City”) for the fiscal year ended December 31, 2024, is hereby submitted. The report was prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Government Accounting Standards Board and meets the requirements of the Minnesota State Auditor’s Office. This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City’s financial statements have been audited by Abdo, 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 for the fiscal year ended December 31, 2024, 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 presentation. Based upon the audit, the independent auditor concluded that there was reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2024, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first item in the financial section of this report. GAAP requires the management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found in the financial section of this report, immediately following the report of the independent auditors. 11 390 City Profile The City of Chanhassen strives to be "A Community for Life.” Our vision is that Chanhassen is a safe, welcoming community with engaged residents, abundant natural amenities, and vibrant businesses, supported by valued services that make this a community for life. Our mission is to serve the public. We do this through the delivery of reliable, cost-effective services designed to provide a safe, sustainable community. Our core values are innovation, respect, stewardship, and engagement. The City of Chanhassen, Minnesota, a suburban community located southwest of the Twin Cities metropolitan area, is situated primarily in eastern Carver County with a small portion in Hennepin County. The City encompasses an area of 22.8 square miles. Chanhassen enjoys an excellent location, with convenient access to the Minneapolis-Saint Paul metropolitan area via U.S. Highway 212, and State Highways 5 and 7. State Highways 41 and 101 provide access to the north and south. The village of Chanhassen was organized in 1896. In 1967 the village of Chanhassen and Chanhassen Township merged to become the City of Chanhassen. The City of Chanhassen operates as a statutory Plan B or Council-Manager form of government in Minnesota. Plan B cities have an elected mayor and council members with an appointed City Manager. The City Manager oversees administrative duties for the City while the Mayor and Council maintain traditional policy-making roles. With a staff of about 86 regular, full-time employees, the City of Chanhassen provides a full range of services, including police and fire protection; building inspections; construction and maintenance of highways, streets, and other infrastructure; recreational activities and cultural events; and general administrative services. The City also operates three enterprises: water, sewer, and surface water management. The City is also financially accountable for the Chanhassen Economic Development Authority (EDA), which is included in this report as a blended component unit. The Chanhassen City Council serves as the board of the EDA. The Chanhassen Fire Relief Association is a separate legal entity and accordingly is excluded from this report. Strategic Priorities The City of Chanhassen 2021-2024 Strategic Plan consists of five strategic priorities. Associated with each priority is a set of desired outcomes, key outcome indicators, and performance targets, describing expected results and how the results will be measured. The five strategic priorities (with desired outcomes) are: •Financial Sustainability o Financial stability in all funds o Financial policies guide decision making o Financial systems produce timely, accurate, and meaningful information •Asset Management o Effective utilization and protection of assets o Ability to pay for critical assets o Assets adequate to support adopted levels of service •Development and Redevelopment o Diversity in new development o Redevelopment consistent with our vision o New innovative places and spaces 12 391 •Operational Excellence o Satisfied workforce o A competent workforce o Improved operational effectiveness, including through the use of technology and innovation •Communications o Improved understanding of City operations o Improved internal communication o Improved communication with outside organizations Annual Budget The annual budget serves as the foundation for the City of Chanhassen’s financial planning and control. The objectives of these budgetary controls are to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Chanhassen City Council. Activities of the General Fund and certain special revenue, debt service, capital project, and enterprise funds are included in the annual budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at the fund level. Expenditures for departments or divisions that exceed appropriations are not authorized unless additional revenue sources or fund balance are identified and available. Unused appropriated expenditures lapse at year-end. The City maintains stable financial operations due to a history of conservative budgeting, maintenance of healthy reserves, and a lack of reliance on state aid. Economic Condition and Outlook The City has grown steadily since incorporating in 1967. The chart below shows population counts from the U.S. Census through 2020 and forecasts from the Metropolitan Council for 2030, 2040, and 2050: Forecasted employment and annual average wages continue to grow in the City according to the Minnesota Department of Employment and Economic Development, which surveys quarterly employment and wages in the state. Employment of 15,460 in 2022 and is expected to increase to 16,610 by 2030 and 18,320 by 2040. Average annual wages in 2022 were $73,372, up from $46,265 in 2010. Average annual unemployment is low for Chanhassen residents, coming in at 2.2% in 2023 and 2.5% in 2024. - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 1970 1980 1990 2000 2010 2020 2030 2040 2050 Chanhassen Population Census Forecast 13 392 The City continues to see steady building permit activity and expects to see continuous growth into the future. The Avienda Project, located near Highway 212 and Powers Boulevard is underway. The project includes a mix of high-quality detached villa homes, multi-family and senior living residential facilities, office, medical and professional services, retail, entertainment, restaurants, and hospitality. The following chart summarizes the City’s annual market value since 2012. The City has entered into tax abatement agreements for projects that, but for City assistance, would not have occurred. The City currently has two pay-as-you-go (PAYGO) tax increment notes to reimburse developers, which are outlined in the notes to the basic financial statements. The benefit to the City is elimination of blighted and underutilized areas, job creation, and increased tax base in the future years. The table below shows the increase in market value for the tax increment districts with PAYGO tax increment notes: Tax Increment Financing District Original Tax Capacity Pay 2024 Tax Capacity Percent Increase in Tax Capacity TIF 11 – The Venue $27,510 $407,305 1,381% TIF 12 – Lake Place Senior Apartments $9,195 $190,421 1,971% In 2021, the City began a facilities study to evaluate the current condition and long-term replacement needs of the City’s facilities. The study evaluated current condition, maintenance planning, and future needs. Based on the facilities study results, the City began construction of a new City Hall and Senior Center building. The new civic campus will include a new City Hall, Council Chambers, Senior Center, and destination park amenities, such as a playround, splash pad, pickleball courts, park rental facility, bandshell, and several other features. Construction of the new City Hall started in the summer of 2024 and is expected to finish in summer 2025. The existing City Hall will then be demolished and construction of the park amenities will occur, with completion expected by July 2026, in time for the City’s 4th of July festivities. The City issued Capital Improvement Bonds in 2024 for construction of the new City Hall and Senior Center building. The City will issue additional bonds in 2025 for the park amenities portion of the project. In 2024, the City held a referendum vote on whether to enact a one-half of one percent sales tax to fund a portion of the cost for a new community center. The referendum passed and the City has started design work for the new Chanhassen Bluffs Community Center. The total cost for the project, including land acquistion, is $80 million. The City plans to begin construction in 2026, with occupancy expected in 2028. The City plans to issue bonds for this project also. $- $1 $2 $3 $4 $5 $6 $7 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024BillionsEstimated Market Value 14 393 The Lake Ann Park Preserve Project is currently in the construction phase, but has been delayed due to archelogical discoveries. The City Council dedicated American Rescue Plan Act (ARPA) funds for the project. This project has several objectives, including: •Continue trails around Lake Ann to allow for an eventual loop •Preserve the land as a valued natural area in Chanhassen •Connect residents with nature, trails, and parks •Protect the ecological functioning (habitat, water quality) of the site •Celebrate Lake Ann, Lake Lucy, and this property as community amenities Chanhassen General Obligation bonds continue to maintain an ‘AAA’ rating from Standard & Poor’s Rating Services, the highest possible rating, reaffirming their confidence in the City’s financial management and its economic outlook. High bond ratings mean the City is able to sell General Obligation bonds at lower interest rates. Long-Term Financial Planning The City expanded its long-term financial planning in 2021 to prepare multi-year financial plans for each of its funds in the 2022 annual budget. The plans include projections of revenues, expenditures, fund balance, and cash balance for a minimum of five years as well as a comparison to historical actual results and the current budget. A narrative describes the fund, background, sources and uses of funds, assumptions, and challenges for the future. These plans form the foundation for making budget decisions for the City’s resources. The plans are updated each year. The City is committed to preserving the value of the City’s capital asset investment. The City has dedicated franchise fee revenue from electric and natural gas utilities as a funding source for the replacement of the City’s streets. The City annually adopts a five-year Capital Improvement Plan to coordinate the financing and timing of major equipment purchases and construction projects. Each year the City selects city streets for a pavement rehabilitation project. In 2024, approximately three miles of roadway were rehabilitated in the following areas: Chan View; Del Rio & Santa Fe; and Stone Creek. Improvements included a full-depth reclamation or mill and overlay, spot curb and gutter replacement, ADA improvements, and water, sewer, and stormwater management repairs. Relevant Financial Policies The City has established a comprehensive set of financial policies for use as a guideline for operations. The City’s policy for General Fund reserve balances is to maintain an unassigned fund balance at a minimum of 50% of the ensuing year’s budgeted tax levy to provide cash flow between property tax settlements. The City’s Investment Policy is designed to preserve capital while attaining a market- average yield consistent with cash flow needs. The policy prioritizes safety, liquidity, and yield in that order. The City also has adopted policies for debt, capital assets, public purpose expenditures, and purchasing. Awards 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 Chanhassen for its annual comprehensive financial report for the fiscal year ended December 31, 2023. This was the 32nd consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. 15 394 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. Acknowledgments We would like to express our appreciation to the members of the City Council for their interest and support in planning and conducting the financial operations of the City. We also want to thank the City Manager, department directors, and members of the Finance Department for their assistance in compiling the information necessary for this report. Special recognition goes to Danielle Washburn, Assistant Finance Director, for her essential contributions to the preparation of this report. Finally, we wish to acknowledge Abdo for their assistance in preparing this report. Respectfully submitted, Kelly Grinnell Kelly Grinnell Finance Director 16 395 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Chanhassen Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2023 Executive Director/CEO 17 396 CITY OF CHANHASSEN ORGANIZATION CHART CitizensCity Council City Attorney City Manager Administration Community Development Finance Fire Law Enforcement Public Works Parks & Recreation City Commissions 18 397 City of Chanhassen, Minnesota Elected and Appointed Officials For the Year Ended December 31, 2024 Name Title Term Expires Elise Ryan Mayor 12/31/26 Josh Kimber Council Member 12/31/28 Jerry McDonald Council Member 12/31/26 Haley Schubert Council Member 12/31/28 Mark von Oven Council Member 12/31/26 Name Title Laurie Hokkanen City Manager Matthew Unmacht Assistant City Manager Samantha DiMaggio Economic Development Manager Kelly Grinnell Finance Director Charles Howley Public Works Director/City Engineer Andrew Heger Fire Chief Jerry Ruegemer Parks and Recreation Director Richard Rice IT Manager Eric Maass Community Development Director ELECTED APPOINTED 19 398 THIS PAGE IS LEFT BLANK INTENTIONALLY 20 399 FINANCIAL SECTION CITY OF CHANHASSEN CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 21 400 THIS PAGE IS LEFT BLANK INTENTIONALLY 22 401 INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Chanhassen, Minnesota Opinions We have audited the accompanying financial statements of each major fund of the governmental activities, business-type activates, each major fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota (the City), as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the City’s financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City as of December 31, 2024, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 23 402 In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’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’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. Change in Accounting Principle As described in Note 14 to the financial statements, the City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement No. 100, Accounting Changes and Error Corrections, for the year ended December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of the components of the financial statements. Our opinion is not modified with respect to this matter. As described in Note 14 to the financial statements, the City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement No. 101, Compensated Absences, for the year ended December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of the components of the financial statements. Our opinion is not modified with respect to this matter. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis starting on page 27 and the schedule of Employer’s Share of the Net Pension Liability, the schedule of Employer’s Contributions, the related note disclosures, the Schedule of Changes in Net Pension Liability (Asset) and Related Ratios, and the Schedule of Changes in the City's OPEB Liability and Related Ratios, starting on page 102 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 24 403 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and related 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 combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statement do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 13, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Abdo Minneapolis, Minnesota May 13, 2025 25 404 THIS PAGE IS LEFT BLANK INTENTIONALLY 26 405 Management’s Discussion and Analysis As management of the City of Chanhassen, 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, 2024. 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 as shown in the summary of net position on the following pages. The unrestricted amount of net position may be used to meet the City’s ongoing obligations to citizens and creditors. •The City’s total net position increased as shown in the summary of changes in net position table on the following pages. The increase this year was due to an increase in operating grants and contributions and capital grants and contributions. The increase in operating grants and contributions was primarily the result of reimbursements from Carver County for the construction of Galpin Boulevard. The increase in capital grants and contributions was primarily the result of utility hookup charges for the Roers apartment buildings. •For the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of the Government's Funds section of the MD&A. The total fund balance increased in comparison with the prior year. This increase was primarily due to the issuance of capital improvement bonds for the construction of the Civic Campus. The total assigned and unassigned fund balance as shown in the governmental fund balance table is available for spending at the City’s discretion. •The unassigned fund balance in the General fund as shown in the financial analysis of the government’s funds section increased from the previous year due to positive budget variances for revenues and expenditures. •The City’s total bonded debt increased during the fiscal year. The increase was a result of the issuance of the 2024A G.O. Capital Improvement Bonds for the construction of the Civic Campus. 27 406 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 supplementary information in addition to the basic financial statements themselves. 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 explain and support 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. Figure 1 Required Components of the City’s Annual Financial Report Management's Discussion and Analysis Basic Financial Statements Required Supplementary Information Government- wide Financial Statements Fund Financial Statements Notes to the Financial Statements Summary Detail 28 407 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. Figure 2 Major Features of the Government-wide and Fund Financial Statements Fund Financial Statements Government-wide Statements Governmental Funds Proprietary Funds Scope Entire City government (except fiduciary funds) and the City’s component units The activities of the City that are not proprietary or fiduciary, such as administrative, fire and parks Activities the City operates similar to private businesses, such as the water and sewer system Required financial statements • Statement of Net Position • Statement of Activities • Balance Sheet • Statement of Revenues, Expenditures, and Changes in Fund Balances • Statements of Net Position • Statements of Revenues, Expenses and Changes in Fund Net Position • Statements of Cash Flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long- term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long- term Type of deferred outflows/inflows of resources information All deferred outflows/inflows of resources, regardless of when cash is received or paid Only deferred outflows of resources expected to be used up and deferred inflows of resources that come due during the year or soon thereafter; no capital assets included All deferred outflows/inflows of resources, regardless of when cash is received or paid Type of inflow/outflow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during the year, regardless of when cash is received or paid Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, 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 of activities 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). 29 408 Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public works (streets and highways), culture and recreation, community development, and interest on long-term debt. The business-type activities of the City include water, sewer, and surface water management. The government-wide financial statements start on page 43 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 be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact 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 provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General fund, Civic Campus fund, and Pavement Management Program fund, which are considered to be major funds. Data from the other governmental funds is presented as nonmajor. The City adopts an annual appropriated budget for its General fund, select Special Revenue funds, one Debt Service fund, and select Capital Project funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with this budget. The basic governmental fund financial statements start on page 48 of this report. Proprietary Funds. Proprietary funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, and surface water management operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for each of the enterprise funds which are considered to be major funds of the City. The basic proprietary fund financial statements start on page 54 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements start on page 61 of this report. Supplementary 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 and other post-employment benefits to its employees. Required supplementary information can be found on page 102 of this report. 30 409 Other Information. The combining statements referred to earlier in connection with nonmajor governmental funds is presented following the notes to the financial statements. Combining and individual fund statements and schedules start on page 120 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of the most recent fiscal year. A portion of the City’s net position reflects its net investment in capital assets (e.g., land, buildings, infrastructure, machinery and equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Chanhassen’s Summary of Net Position Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Assets Current and other assets 55,441,421$ 33,191,131$ 22,250,290$ 11,911,158$ 13,496,336$ (1,585,178)$ Capital assets 84,778,378 72,533,901 12,244,477 80,400,354 79,102,235 1,298,119 Total Assets 140,219,799 105,725,032 34,494,767 92,311,512 92,598,571 (287,059) Deferred Outflows of Resources Deferred other postemployment benefit resources 65,614 77,330 (11,716) 11,468 12,911 (1,443) Deferred pension resources 1,917,660 2,695,101 (777,441) 502,273 586,895 (84,622) Total Deferred Outflows of Resources 1,983,274 2,772,431 (789,157) 513,741 599,806 (86,065) Liabilities Noncurrent liabilities outstanding 10,991,681 8,887,524 2,104,157 3,526,141 2,853,950 672,191 Other liabilities 30,989,563 8,421,811 22,567,752 20,485,420 22,552,600 (2,067,180) Total Liabilities 41,981,244 17,309,335 24,671,909 24,011,561 25,406,550 (1,394,989) Deferrred Inflows of Resources Deferred other postemployment benefit resources 82,802 59,689 23,113 14,472 9,966 4,506 Deferred pension resources 3,572,121 2,676,175 895,946 264,217 173,263 90,954 Deferred lease resources 3,271,051 3,471,066 (200,015) - - - Total Deferred Inflows of Resources 6,925,974 6,206,930 719,044 278,689 183,229 95,460 Net Position Net investment in capital assets 69,207,758 67,404,190 1,803,568 59,721,155 56,649,651 3,071,504 Restricted 2,784,210 2,858,088 (73,878) - - - Unrestricted 21,303,887 14,718,920 6,584,967 8,813,848 10,958,947 (2,145,099) Total Net Position 93,295,855$ 84,981,198$ 8,314,657$ 68,535,003$ 67,608,598$ 926,405$ Net Position as a Percent of Total Net investment in capital assets 74.2 %79.3 %87.1 %83.8 % Restricted 3.0 3.4 - - Unrestricted 22.8 17.3 12.9 16.2 Total 100.0 %100.0 %100.0 %100.0 % Governmental Activities Business-type Activities 31 410 An additional portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position for governmental activities and net investment in capital assets for business-type activities. City of Chanhassen’s Changes in Net Position Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Revenues Program Revenues Charges for services 3,517,012$ 3,642,164$ (125,152)$ 10,535,783$ 10,999,440$ (463,657)$ Operating grants and contributions 9,443,046 4,556,281 4,886,765 56,775 46,458 10,317 Capital grants and contributions 2,662,398 1,693,875 968,523 5,594,435 1,853,961 3,740,474 General Revenues Taxes Property taxes 14,357,960 13,409,631 948,329 - - - Tax increment 444,581 282,067 162,514 - - - Franchise fees 2,040,308 2,045,767 (5,459) - - - Grants and contributions not restricted to specific programs 141,257 390,075 (248,818) - - - Unrestricted investment earnings 1,466,312 1,054,685 411,627 406,491 540,984 (134,493) Other general revenues 170,653 126,114 44,539 - - - Gain on sale of capital assets 248,053 164,746 83,307 - - - Total Revenues 34,491,580 27,365,405 7,126,175 16,593,484 13,440,843 3,152,641 Expenses General government 3,810,386 4,326,016 (515,630) - - - Public safety 5,463,958 5,825,937 (361,979) - - - Public works 10,953,832 10,646,546 307,286 - - - Culture and recreation 3,896,895 4,252,161 (355,266) - - - Community development 998,188 868,229 129,959 - - - Interest on long-term debt 1,053,664 218,628 835,036 - - - Water - - - 5,966,996 5,782,514 184,482 Sewer - - - 5,838,537 5,359,316 479,221 Surface water management - - - 3,861,546 2,565,581 1,295,965 Total Expenses 26,176,923 26,137,517 39,406 15,667,079 13,707,411 1,959,668 Change in net position 8,314,657 1,227,888 7,086,769 926,405 (266,568) 1,192,973 Net Position, January 1 84,981,198 83,753,310 1,227,888 67,608,598 67,875,166 (266,568) Net Position, December 31 93,295,855$ 84,981,198$ 8,314,657$ 68,535,003$ 67,608,598$ 926,405$ Governmental Activities Business-type Activities 32 411 Governmental Activities. Governmental activities increased the City’s net position as shown in the summary of changes in net position. The following graphs depict various governmental activities and shows the revenue and expenses directly related to those activities. Key elements of the changes are listed below: •Operating grants and contributions revenue increased primarily due to payment received from Carver County for the construction of Galpin Boulevard. •Overall expenses remained relatively flat compared to the previous year. Expenses and Program Revenue - Governmental Activities $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 General Government Public Safety Public Works Culture and Recreation Community Development Interest on Long-term Debt Expense Program Revenues Revenue by Source - Governmental Activities Charges for Services 10.2%Operating Grants and Contributions 27.4% Capital Grants and Contributions 7.7% Grants and Contributions Unrestricted 0.4% Taxes 48.8% Other 5.5% 33 412 Expense by Program - Governmental Activities General Government 35.1% Public Safety 15.8% Public Works 31.8% Culture and Recreation 11.3% Community Development 2.9% Interest on Long-term Debt 3.1% Business-type Activities. Business-type activities increased the City’s net position as noted in the changes in net position table above. Key elements of the changes are listed below: • Revenues in the business-type activities increased mainly due to an increase in capital grants and contributions for the year relating to utility hookup charges from the Roers apartment buildings. • Expenses in the Surface Water Management fund increased due to expenses related to construction projects. Expenses and Program Revenues - Business-type Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Water Sewer Surface Water Management Expenses Program Revenues 34 413 Revenue by Source - Business-type Activities Charges for Services 63.6%Operating Grants and Contributions 0.3% Capital Grants and Contributions 33.7% Other 2.4% Expenses by Program - Business-type Activities Water 71.9% Sewer 16.9% Surface Water Management 11.2% 35 414 Financial Analysis of the Government’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Pavement Other General Civic Mgmt Prgm Governmental Prior Year Increase/ Fund Campus (PMP)Funds Total Total (Decrease) Fund Balances Nonspendable 135,138$ -$ -$ -$ 135,138$ 78,627$ 56,511$ Restricted - 16,130,983 - 3,165,077 19,296,060 2,884,859 16,411,201 Committed - -- 144,359 144,359 344,647 (200,288) Assigned 4,225,000 - 771,562 4,328,451 9,325,013 7,909,972 1,415,041 Unassigned 7,762,840 - -(20,494) 7,742,346 7,009,097 733,249 Total Fund Balances 12,122,978$ 16,130,983$ 771,562$ 7,617,393$ 36,642,916$ 18,227,202$ 18,415,714$ As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances as shown above. Additional information on the City’s fund balances can be found in Note 1 starting on page 61 of this report. The General fund is the chief operating fund of the City. The current year end fund balance of the General fund is shown in the table above. The overall General fund balance increased largely due to the designation of American Rescue Plan Act (ARPA) funds for revenue replacement and the expenditure of those funds for public safety services by the fire department and contracted police services with the Carver County Sheriff’s Department. As a measure of the General fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. The total unassigned fund balance percent of total fund expenditures is shown in the chart below along with total fund balance as a percentage of total expenditures. Current Year Prior Year Increase/ Ending Balance Ending Balance (Decrease) General Fund Fund Balances Nonspendable 135,138$ 63,227$ 71,911$ Assigned 4,225,000 797,600 3,427,400 Unassigned 7,762,840 8,011,272 (248,432) Total General Fund Balances 12,122,978$ 8,872,099$ 3,250,879$ General Fund expenditures 14,834,409 14,087,518 Unassigned as a percent of expenditures 52.3%56.9% Total Fund Balance as a percent of expenditures 81.7%63.0% Other governmental fund analysis is shown below: December 31,December 31, Increase/ 2024 2023 (Decrease) Civic Campus fund 16,130,983$ (975,263)$ 17,106,246$ Pavement Management Program (PMP) fund 771,562$ 3,312,577$ (2,541,015)$ The Pavement Management Program (PMP) fund balance decreased during the year due to capital expenditures. These expenditures were associated with construction costs relating to the City's ongoing projects as part of the Pavement Management Program. The Civic Campus fund balance increased during the year mainly due to the issuance of the Capital Improvement Plan Bonds. 36 415 Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Net position of the City’s proprietary funds is as follows: Ending Ending Net Position Net Position Increase/ 2024 2023 (Decrease) Water 36,553,909$ 35,087,132$ 1,466,777$ Sewer 16,253,877$ 16,615,145$ (361,268)$ Surface Water Management 15,727,217$ 15,906,321$ (179,104)$ The decrease is primarily attributed to the operating loss during the year. The decrease is primarily attributed to the operating loss during the year. The increase is primarily attributed to the charges for services and the capital contributions from connection fees during the year. General Fund Budgetary Highlights Final Budgeted Actual Variance with Amounts Amounts Final Budget Revenues 15,413,350$ 16,348,182$ 934,832$ Expenditures 15,653,350 14,834,409 818,941 Excess (Deficiency) of Revenues Over (Under) Expenditures (240,000) 1,513,773 1,753,773 Other Financing Sources (Uses) Transfers in 330,000 1,737,106 1,407,106 Net Change in Fund Balances 90,000 3,250,879 3,160,879 Fund Balances, January 1 8,872,099 8,872,099 - Fund Balances, December 31 8,962,099$ 12,122,978$ 3,160,879$ The City’s General fund budget was not amended during the year as shown above. Actual revenues were over the final budget and expenditures were under the final budget amounts as shown above. The main reasons for the favorable revenue variance was due to investment earnings and building permit revenues in excess of the budget. The positive expenditure variance was due to several departments in the general fund spending under the final budget. 37 416 Capital Asset and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business type activities as of December 31, 2024, is shown below in the schedule of capital assets (net of depreciation). This investment in capital assets includes land, structures, improvements, machinery and equipment, park facilities, and roads. Additional information on the City’s capital assets can be found in Note 4 starting on page 73 of this report. City of Chanhassen’s Capital Assets (Net of Depreciation/Amortization) Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) Land 19,920,218$ 19,915,918$ 4,300$ 2,116,335$ 2,116,335$ -$ Permanent easements 2,826,748 2,826,748 - 7,088,204 7,088,204 - Construction in progress 19,596,516 3,826,559 15,769,957 7,597,828 3,126,181 4,471,647 Buildings and structures 12,300,991 12,919,348 (618,357) 22,078,064 22,643,399 (565,335) Right to use lease assets - vehicles 631,977 597,153 34,824 215,911 35,759 180,152 Machinery and equipment 3,404,523 3,560,772 (156,249) 1,058,010 1,208,861 (150,851) Other improvements 6,297,818 6,795,537 (497,719) 40,246,002 42,883,496 (2,637,494) Infrastructure 19,799,587 22,091,866 (2,292,279) - - - Total 84,778,378$ 72,533,901$ 12,244,477$ 80,400,354$ 79,102,235$ 1,298,119$ Percent increase (decrease)16.9%1.6% Governmental Activities Business-type Activities Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding consisting solely of general obligation debt as noted in the table below. 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 leases multiple vehicles from Enterprise Rent-a-Car. As of December 31, 2024, the City had 40 outstanding vehicle leases, 14 of which were entered into during 2024. City of Chanhassen’s Outstanding Debt Increase Increase 2024 2023 (Decrease)2024 2023 (Decrease) General Obligation Bonds 26,870,000$ 3,015,000$ 23,855,000$ -$ -$ -$ General Obligation Revenue Bonds - - - 19,520,000 21,275,000 (1,755,000) Bond Premium 1,288,708 111,893 1,176,815 775,613 894,245 (118,632) Lease Payable 675,181 614,439 60,742 218,636 37,140 181,496 Total 28,833,889$ 3,741,332$ 25,092,557$ 20,514,249$ 22,206,385$ (1,692,136)$ Percent increase (decrease)670.7%-7.6% Governmental Activities Business-type Activities The City’s total debt increased during the current fiscal year. The key factor in the increase was a capital improvement bond issuance for the new Civic Campus. Additional information on the City’s long-term debt can be found in Note 8 starting on page 77 of this report. 38 417 Economic Factors and Next Year’s Budget and Rates The City’s elected officials considered many factors when setting the fiscal year 2025 budget, rates, and fees. These considerations included, but are not limited to, the following: • The City participates in several long-term planning processes that align with the City’s budget process. The strategic plan and comprehensive plan form the basis for the City’s operating and capital budgets. • The City’s contract with the County Sheriff for policing services increased 7.4 percent from 2024, which is less than the 12.6% increase from 2023 to 2024, but still higher than the general inflation rate. • The 2025 budget includes one new full-time employee, a Facilities Maintenance Technician. This adds a second person for building maintenance for all City Buildings. • The budget maintains planned, modest annual increases in funding levels for transportation/routine road maintenance, pavement management/street reconstruction, trail maintenance, and capital equipment. • The City’s goal is to maintain road conditions in the City to achieve a stable score of 70 on the Pavement Condition Index (PCI). • The City contracted for a utility rate study analysis to determine rates for 2023 and beyond given the increased capital and operating costs for each utility. The 2025 rates from the study are incorporated into the utility fund budgets. • Another City Council goal was to minimize the total increase on the levy since a new debt service levy for the Civic Campus bonds begins for taxes payable in 2025. • The City started a new levy for the park renovation fund for 2025 for $100,000. This new dedicated levy will help the City accumulate funds for maintenance and replacement of existing park amenities, which have historically not had a dedicated funding source. The City’s adopted budget for 2025 includes a property tax levy of $15,370,000, which is a 6.3 percent increase over the previous year. The City’s growth in tax capacity was approximately 2.3 percent and the tax rate increased approximately 4.3 percent, from 20.96 percent to 21.86 percent. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, City of Chanhassen, 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317. 39 418 THIS PAGE IS LEFT BLANK INTENTIONALLY 40 419 GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF CHANHASSEN CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 41 420 THIS PAGE IS LEFT BLANK INTENTIONALLY 42 421 City of Chanhassen, Minnesota Statement of Net Position December 31, 2024 Governmental Business-type Activities Activities Total Assets Cash and investments 44,376,079$ 7,506,372$ 51,882,451$ Receivables Accounts 713,145 889,699 1,602,844 Accrued interest 145,673 45,429 191,102 Taxes 150,418 - 150,418 Leases 3,271,051 - 3,271,051 Special assessments 3,944,253 3,069,464 7,013,717 Due from other governments 2,666,817 203,617 2,870,434 Inventories - 184,342 184,342 Prepaid items 135,138 12,235 147,373 Pension asset 38,847 - 38,847 Capital assets Land and construction in progress 42,343,482 16,802,367 59,145,849 Depreciable assets (net of accumulated depreciation and amortization)42,434,896 63,597,987 106,032,883 Total Assets 140,219,799 92,311,512 232,531,311 Deferred Outflows of Resources Deferred pension resources 1,917,660 502,273 2,419,933 Deferred other postemployment benefit resources 65,614 11,468 77,082 Total Deferred Outflows of Resources 1,983,274 513,741 2,497,015 Liabilities Accounts and contracts payable 5,994,542 1,180,880 7,175,422 Accrued salaries 189,868 62,850 252,718 Accrued interest payable 419,714 251,619 671,333 Due to other governments 354,893 92,821 447,714 Deposits payable 1,972,603 - 1,972,603 Unearned revenue 1,061,341 - 1,061,341 Noncurrent liabilities Due within one year Long-term liabilities 974,745 1,933,780 2,908,525 Other postemployment benefits liability 23,975 4,191 28,166 Due in more than one year Long-term liabilities 28,744,993 18,845,796 47,590,789 Other postemployment benefits liability 155,594 27,195 182,789 Net pension liability 2,088,976 1,612,429 3,701,405 Total Liabilities 41,981,244 24,011,561 65,992,805 Deferred Inflows of Resources Deferred pension resources 3,572,121 264,217 3,836,338 Deferred other postemployment benefit resources 82,802 14,472 97,274 Deferred lease resources 3,271,051 - 3,271,051 Total Deferred Inflows of Resources 6,925,974 278,689 7,204,663 Net Position Net investment in capital assets 69,207,758 59,721,155 128,928,913 Restricted for Local affordable housing 126,855 - 126,855 Park improvements 672,134 - 672,134 Tax increments 54,927 - 54,927 Public safety 950,174 - 950,174 Debt service 897,387 - 897,387 Communications 43,886 - 43,886 Pension asset 38,847 - 38,847 Unrestricted 21,303,887 8,813,848 30,117,735 Total Net Position 93,295,855$ 68,535,003$ 161,830,858$ The notes to the financial statements are an integral part of this statement. 43 422 City of Chanhassen, Minnesota Statement of Activities For the Year Ended December 31, 2024 Operating Capital Charges For Grants and Grants and Expenses Services Contributions Contributions Primary Government Governmental activities General government 3,810,386$ 466,197$ -$ 4,300$ Public safety 5,463,958 1,943,159 2,030,874 - Public works 10,953,832 475,766 6,438,578 2,658,098 Culture and recreation 3,896,895 588,499 973,594 - Community development 998,188 43,391 - - Interest on long-term debt 1,053,664 - - - Total Governmental Activities 26,176,923 3,517,012 9,443,046 2,662,398 Business-type Activities Water 5,966,996 4,133,781 14,807 3,088,022 Sewer 5,838,537 4,330,428 - 937,017 Surface water management 3,861,546 2,071,574 41,968 1,569,396 Total Business-type Activities 15,667,079 10,535,783 56,775 5,594,435 Total Governmental and 41,844,002$ 14,052,795$ 9,499,821$ 8,256,833$ Business-type Activities General Revenues Taxes Property taxes, levied for general purposes Tax increments Franchise fees Grants and contributions not restricted to specific programs Unrestricted investment earnings Other general revenues Gain on sale of capital assets Total General Revenues Change in Net Position Net Position - January 1 Net Position - December 31 Program Revenues Functions/Programs The notes to the financial statements are an integral part of this statement. 44 423 Governmental Business-type Activities Activities Total (3,339,889)$ -$ (3,339,889)$ (1,489,925) - (1,489,925) (1,381,390) - (1,381,390) (2,334,802) - (2,334,802) (954,797) - (954,797) (1,053,664) - (1,053,664) (10,554,467) - (10,554,467) - 1,269,614 1,269,614 - (571,092) (571,092) - (178,608) (178,608) - 519,914 519,914 (10,554,467) 519,914 (10,034,553) 14,357,960 - 14,357,960 444,581 - 444,581 2,040,308 - 2,040,308 141,257 - 141,257 1,466,312 406,491 1,872,803 170,653 - 170,653 248,053 - 248,053 18,869,124 406,491 19,275,615 8,314,657 926,405 9,241,062 84,981,198 67,608,598 152,589,796 93,295,855$ 68,535,003$ 161,830,858$ Net (Expenses) Revenues and Changes in Net Position Primary Government The notes to the financial statements are an integral part of this statement. 45 424 THIS PAGE IS LEFT BLANK INTENTIONALLY 46 425 FUND FINANCIAL STATEMENTS CITY OF CHANHASSEN CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 47 426 601 414 Pavement Other Civic Mgmt Prgm Governmental General Campus (PMP)Funds Total Assets Cash and investments 14,165,495$ 17,407,338$ 4,205,147$ 8,598,099$ 44,376,079$ Receivables Accounts 119,098 - 497,630 96,417 713,145 Accrued interest 59,478 9,478 27,885 48,832 145,673 Taxes 136,117 - 5,393 8,908 150,418 Leases 3,271,051 - - - 3,271,051 Special assessments 352 - 2,445,187 1,498,714 3,944,253 Due from other funds 271,000 - - - 271,000 Due from other governments 163,277 - 2,389,130 114,410 2,666,817 Prepaid items 135,138 - - - 135,138 Total Assets 18,321,006$ 17,416,816$ 9,570,372$ 10,365,380$ 55,673,574$ Liabilities Accounts payable 345,599$ 1,035,833$ 649,588$ 1,052,247$ 3,083,267$ Accrued salaries payable 189,868 - - - 189,868 Contracts payable - - 2,745,928 165,347 2,911,275 Due to other governments 313,625 - 30,589 10,679 354,893 Due to other funds - 250,000 - 21,000 271,000 Deposits payable 1,972,603 - - - 1,972,603 Unearned revenue 44,695 - 1,016,646 - 1,061,341 Total Liabilities 2,866,390 1,285,833 4,442,751 1,249,273 9,844,247 Deferred Inflows of Resources Unavailable revenue - intergovernmental - - 1,914,607 - 1,914,607 Unavailable revenue - property taxes 60,235 - - - 60,235 Unavailable revenue - special assessments 352 - 2,441,452 1,498,714 3,940,518 Deferred lease resources 3,271,051 - - - 3,271,051 Total Deferred Inflows of Resources 3,331,638 - 4,356,059 1,498,714 9,186,411 Fund Balances Nonspendable 135,138 - - - 135,138 Restricted - 16,130,983 - 3,165,077 19,296,060 Committed - - - 144,359 144,359 Assigned 4,225,000 - 771,562 4,328,451 9,325,013 Unassigned 7,762,840 - - (20,494) 7,742,346 Total Fund Balances 12,122,978 16,130,983 771,562 7,617,393 36,642,916 Total Liabilities, Deferred Inflows of Resources and Fund Balances 18,321,006$ 17,416,816$ 9,570,372$ 10,365,380$ 55,673,574$ City of Chanhassen, Minnesota Balance Sheet Governmental Funds December 31, 2024 The notes to the financial statements are an integral part of this statement. 48 427 City of Chanhassen, Minnesota Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds December 31, 2024 Amounts reported for the governmental activities in the statement of net position are different because Total Fund Balances - Governmental 36,642,916$ Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in governmental funds. Cost of capital assets 219,759,418 Less accumulated depreciation (134,981,040) Long-term assets from pensions reported in governmental activities are not financial resources and therefore are not reported as assets in the funds 38,847 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-term liabilities at year-end consist of Bond principal payable (26,870,000) Unamortized premiums on bonds (1,288,708) Project financing (207,417) Leases payable (675,181) Compensated absences payable (678,432) Other postemployment benefits payable (179,569) Net pension liability (2,088,976) Some receivables are not available soon enough to pay for the current period's expenditures, and therefore are reported as unavailable in the funds. Property taxes receivable 60,235 Special assessments receivable 3,940,518 Intergovernmental 1,914,607 Governmental funds do not report long-term amounts related to pensions and other post-employment benefits. Deferred outflows of pension resources 1,917,660 Deferred inflows of pension resources (3,572,121) Deferred outflows of OPEB resources 65,614 Deferred inflows of OPEB resources (82,802) Governmental funds do not report a liability for accrued interest until due and payable.(419,714) Total Net Position - Governmental Activities 93,295,855$ The notes to the financial statements are an integral part of this statement. 49 428 City of Chanhassen, Minnesota Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 31, 2024 601 414 PMP Pavement Other Civic Management 212*Governmental General Campus Capital Grant Fund Funds Total Revenues Taxes 11,724,499$ -$ 982,000$ 1,622,000$ 14,328,499$ Tax increments - - - 444,581 444,581 Licenses and permits 2,221,600 - - 28,333 2,249,933 Intergovernmental 573,098 - 5,367,221 2,481,057 8,421,376 Charges for services 1,095,814 - -6,100 1,101,914 Franchise fees 140,269 - 1,899,990 49 2,040,308 Fines and forfeits 75,887 - -- 75,887 Special assessments - - 1,397,913 - 1,397,913 Investment earnings 397,474 362,678 340,916 373,855 1,474,923 Miscellaneous 119,541 - - 98,031 217,572 Total Revenues 16,348,182 362,678 9,988,040 5,054,006 31,752,906 Expenditures Current General government 3,312,119 12,855 - 216,206 3,541,180 Public safety 5,303,287 - - - 5,303,287 Public works 2,807,222 - 1,385 - 2,808,607 Culture and recreation 2,826,840 - -- 2,826,840 Community development 584,941 - -425,844 1,010,785 Capital outlay - General government - 7,868,039 - 265,165 8,133,204 Public safety - -- 183,872 183,872 Public works - -12,382,670 372,368 12,755,038 Culture and recreation - -- 1,426,215 1,426,215 Debt service - Principal - - 145,000 685,933 830,933 Interest and other charges - - - 140,745 140,745 Bond issuance costs - 341,338 - - 341,338 Total Expenditures 14,834,409 8,222,232 12,529,055 3,716,348 39,302,044 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,513,773 (7,859,554) (2,541,015) 1,337,658 (7,549,138) Other Financing Sources (Uses) Sale of capital assets - - - 266,687 266,687 Transfers in 1,737,106 - - 938,120 2,675,226 Issuance of leases - - - 255,365 255,365 Issuance of bonds - 23,773,000 - 477,000 24,250,000 Premiums on bonds issued - 1,192,800 - - 1,192,800 Transfers out - -- (2,675,226) (2,675,226) Total Other Financing Sources (Uses)1,737,106 24,965,800 - (738,054) 25,964,852 Net Changes in Fund Balances 3,250,879 17,106,246 (2,541,015) 599,604 18,415,714 Fund Balances, January 1, as previously reported 8,872,099 - 3,312,577 1,193,139 4,849,387 18,227,202 Change to the financial reporting entity Change from major to nonmajor fund - - - (1,193,139) 1,193,139 - Change from nonmajor to major fund - (975,263) - 975,263 - Fund Balances, January 1, as adjusted 8,872,099 (975,263) 3,312,577 - 7,017,789 18,227,202 Fund Balances, December 31 12,122,978$ 16,130,983$ 771,562$ 7,617,393$ 36,642,916$ * Grant Fund 212 was formerly major The notes to the financial statements are an integral part of this statement. 50 429 City of Chanhassen, Minnesota Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended December 31, 2024 Amounts reported for governmental activities in the statement of activities are different because Total Net Change in Fund Balances 18,415,714$ Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Depreciation expense (4,196,660) Capital outlays 16,455,471 Contribution of capital assets from developers 4,300 Governmental funds report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the disposition of the assets book value is included in the total gain (loss) in the statement of activities. Disposals (427,754) Depreciation on disposals 409,120 The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Issuance of debt (24,250,000) Premium on bonds issued (1,192,800) Principal repayments on bonds 395,000 Principal repayments on leases 194,623 Principal repayments on project financing 241,310 Leases issued (255,365) 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 the use of current financial resources. In the statement of activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.(392,943) Governmental funds report debt issuance premiums and discounts as an other financing source or use at the time of issuance. Premiums and discounts are reported as an unamortized asset or liability in the city-wide financial statements. Amortization of bond premiums and discount 15,985 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments 1,260,185 Property taxes 18,668 Intergovernmental 1,070,406 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences and other postemployment benefit payable 5,164 Long-term pension activity is not reported in governmental funds. Pension expense 407,171 Direct aid contributions 137,062 Change in Net Position - Governmental Activities 8,314,657$ The notes to the financial statements are an integral part of this statement. 51 430 THIS PAGE IS LEFT BLANK INTENTIONALLY 52 431 City of Chanhassen, Minnesota Actual Variance with Original Final Amounts Final Budget Revenues Taxes 11,851,000$ 11,851,000$ 11,724,499$ (126,501)$ Franchise fees 145,000 145,000 140,269 (4,731) Licenses and permits 1,582,500 1,582,500 2,221,600 639,100 Intergovernmental 466,000 466,000 573,098 107,098 Charges for services 1,035,350 1,035,350 1,095,814 60,464 Fines and forfeits 70,000 70,000 75,887 5,887 Investment earnings 200,000 200,000 397,474 197,474 Miscellaneous 63,500 63,500 119,541 56,041 Total Revenues 15,413,350 15,413,350 16,348,182 934,832 Expenditures Current General government 3,583,106 3,583,106 3,312,119 270,987 Public safety 5,440,052 5,440,052 5,303,287 136,765 Public works 3,102,596 3,102,596 2,807,222 295,374 Culture and recreation 2,920,553 2,920,553 2,826,840 93,713 Community development 607,043 607,043 584,941 22,102 Total Expenditures 15,653,350 15,653,350 14,834,409 818,941 Excess (Deficiency) of Revenues Over (Under) Expenditures (240,000) (240,000) 1,513,773 1,753,773 Other Financing Sources Transfers in 330,000 330,000 1,737,106 1,407,106 Net Change in Fund Balances 90,000 90,000 3,250,879 3,160,879 Fund Balances, January 1 8,872,099 8,872,099 8,872,099 - Fund Balances, December 31 8,962,099$ 8,962,099$ 12,122,978$ 3,160,879$ Budgeted Amounts Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 53 432 City of Chanhassen, Minnesota Statement of Net Position Proprietary Funds December 31, 2024 Surface Water Water Sewer Management Totals Assets Current Assets Cash and investments 3,380,174$ 4,122,717$ 3,481$ 7,506,372$ Receivables Accounts 290,260 340,486 258,953 889,699 Accrued interest 24,117 21,312 - 45,429 Special assessments 308,449 18,565 - 327,014 Due from other funds 1,060,000 - - 1,060,000 Due from other governments 2,511 151,154 49,952 203,617 Inventory 184,342 - - 184,342 Prepaid expenses 6,385 4,456 1,394 12,235 Total Current Assets 5,256,238 4,658,690 313,780 10,228,708 Noncurrent Assets Special assessments 2,159,650 582,800 - 2,742,450 Capital assets Land 1,370,974 145,550 599,811 2,116,335 Land improvements 2,433,426 2,327,389 2,327,389 7,088,204 Construction in progress 2,353,646 2,551,907 2,692,275 7,597,828 Improvements 56,658,433 36,920,878 34,628,131 128,207,442 Leased equipment 134,302 134,302 - 268,604 Buildings 28,189,036 - - 28,189,036 Machinery and equipment 891,925 949,319 776,651 2,617,895 Less accumulated depreciation/amortization (43,205,743) (29,955,859) (22,523,388) (95,684,990) Total Capital Assets (Net of Accumulated Depreciation/Amortization)48,825,999 13,073,486 18,500,869 80,400,354 Total Noncurrent Assets 50,985,649 13,656,286 18,500,869 83,142,804 Total Assets 56,241,887 18,314,976 18,814,649 93,371,512 Deferred Outflows of Resources Deferred other postemployment benefit resources 6,798 3,161 1,509 11,468 Deferred pension resources 138,432 151,439 212,402 502,273 Total deferred outflows of resources 145,230 154,600 213,911 513,741 Total Assets and Deferred Outflows of Resources 56,387,117$ 18,469,576$ 19,028,560$ 93,885,253$ Liabilities Current Liabilities Accounts payable 63,167$ 45,878$ 68,291$ 177,336$ Contracts payable 378,965 169,697 454,882 1,003,544 Accrued salaries 25,570 18,684 18,596 62,850 Accrued interest payable 230,703 12,083 8,833 251,619 Due to other governments 2,324 44,896 45,601 92,821 Due to other funds - - 1,060,000 1,060,000 Lease liability - current 39,749 39,749 - 79,498 Bonds payable - current 1,515,000 170,000 125,000 1,810,000 OPEB liability 2,484 1,155 552 4,191 Compensated absences payable - current 17,300 13,502 13,480 44,282 Total Current Liabilities 2,275,262 515,644 1,795,235 4,586,141 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 54 433 City of Chanhassen, Minnesota Statement of Net Position (Continued) Proprietary Funds December 31, 2024 Surface Water Water Sewer Management Total Noncurrent Liabilities Compensated absences 86,356$ 67,399$ 67,290$ 221,045$ Lease liability 69,569 69,569 - 139,138 Bonds payable 16,759,094 996,837 729,682 18,485,613 OPEB liability 16,121 7,497 3,577 27,195 Net pension liability 482,088 482,127 648,214 1,612,429 Total Noncurrent Liabilities 17,413,228 1,623,429 1,448,763 20,485,420 Total Liabilities 19,688,490 2,139,073 3,243,998 25,071,561 Deferred Inflows of Resources Deferred other postemployment benefit resources 8,579 3,989 1,904 14,472 Deferred pension resources 136,139 72,637 55,441 264,217 Total deferred inflows of resources 144,718 76,626 57,345 278,689 Net Position Net investment in capital assets 30,442,587 11,797,331 17,481,237 59,721,155 Unrestricted 6,111,322 4,456,546 (1,754,020) 8,813,848 Total Net Position 36,553,909 16,253,877 15,727,217 68,535,003 Total Liabilities, Deferred Inflows of Resources and Net Position 56,387,117$ 18,469,576$ 19,028,560$ 93,885,253$ Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 55 434 THIS PAGE IS LEFT BLANK INTENTIONALLY 56 435 Surface Water Water Sewer Management Total Charges for services 4,128,607$ 4,229,359$ 2,070,148$ 10,428,114$ Intergovernmental 14,807 - 41,968 56,775 Total Operating Revenues 4,143,414 4,229,359 2,112,116 10,484,889 Operating Expenses 1,134,292 800,511 988,990 2,923,793 286,309 51,893 21,643 359,845 195,244 3,225,079 391,468 3,811,791 279,843 49,901 - 329,744 20,000 20,000 8,000 48,000 1,201,941 534,861 1,188,974 2,925,776 1,950,312 872,581 1,053,605 3,876,498 Salaries and benefits Materials and supplies Professional services Utilities Insurance Repairs and maintenance Depreciation Other 425,192 260,691 198,144 884,027 Total Operating Expenses 5,493,133 5,815,517 3,850,824 15,159,474 Operating Income (Loss)(1,349,719) (1,586,158) (1,738,708) (4,674,585) Nonoperating Revenues (Expenses) Investment income (loss)197,163 209,824 (496) 406,491 Refunds and reimbursements 5,174 101,069 1,426 107,669 Interest expense and fiscal charges (473,863) (23,020) (10,722) (507,605) Total Nonoperating Revenues (Expenses)(271,526) 287,873 (9,792) 6,555 Income (Loss) Before Contributions (1,621,245) (1,298,285) (1,748,500) (4,668,030) Capital Contributions Contributions of capital assets 49,360 24,317 1,404,623 1,478,300 Intergovernmental - 78,080 - 78,080 Connection charges 3,038,662 834,620 164,773 4,038,055 Change in Net Position 1,466,777 (361,268) (179,104) 926,405 Net Position, January 1 35,087,132 16,615,145 15,906,321 67,608,598 Net Position, December 31 36,553,909$ 16,253,877$ 15,727,217$ 68,535,003$ Operating Revenues Business-type Activities - Enterprise Funds City of Chanhassen, Minnesota Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended December 31, 2024 The notes to the financial statements are an integral part of this statement. 57 436 Surface Water Water Sewer Management Total Cash Flows from Operating Activities Receipts from customers and users and grants 4,097,627$ 4,199,644$ 2,103,844$ 10,401,115$ Payments to suppliers (2,124,325) (4,070,513) (1,608,295) (7,803,133) Payments to employees (1,164,613) (802,700) (1,014,134) (2,981,447) Net Cash Provided (Used) by Operating Activities 808,689 (673,569) (518,585) (383,465) Cash Flows from Noncapital Financing Activities Receipts (payments) from (to) other funds (975,000) - 975,000 - Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (1,574,341) (1,423,878) (479,624) (3,477,843) Connection charges 879,012 273,267 164,773 1,317,052 Intergovernmental revenue - 78,080 - 78,080 Principal paid on bonds (1,470,000) (165,000) (120,000) (1,755,000) Principal paid on leases (19,104) (19,103) - (38,207) Interest and fiscal charges (586,234) (39,450) (23,159) (648,843) Net Cash Provided (Used) by Capital and Related Financing Activities (2,770,667) (1,296,084) (458,010) (4,524,761) Cash Flows from Investing Activities Interest received from investments 203,814 217,946 - 421,760 Net Increase (Decrease) in Cash and Cash Equivalents (2,733,164) (1,751,707) (1,595) (4,486,466) Cash and Cash Equivalents, January 1 6,113,338 5,874,424 5,076 11,992,838 Cash and Cash Equivalents, December 31 3,380,174$ 4,122,717$ 3,481$ 7,506,372$ City of Chanhassen, Minnesota Statement of Cash Flows Proprietary Funds For the Year Ended December 31, 2024 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 58 437 Surface Water Water Sewer Management Total Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) By Operating Activities Operating income (loss)(1,349,719)$ (1,586,158)$ (1,738,708)$ (4,674,585)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 1,950,312 872,581 1,053,605 3,876,498 Miscellaneous revenue 5,174 101,069 1,426 107,669 (Increase) decrease in assets/deferred outflows of resources Accounts receivable 36,448 37,225 (9,680) 63,993 Due from other governments 927 (149,444) (18) (148,535) Special Assessments (88,336) (18,565) - (106,901) Inventory 8,092 - - 8,092 Prepaid items (6,369) (4,447) (1,387) (12,203) Deferred pension resources 47,186 21,056 16,380 84,622 Deferred other post employment benefits 483 507 453 1,443 Increase (decrease) in liabilities/deferred inflows of resources Due to other governments 1,043 (12,379) 8,409 (2,927) Accounts payable (4,963) (18,930) (15,771) (39,664) Contracts payable 286,401 107,668 208,683 602,752 Salaries payable 9,240 6,057 2,901 18,198 Compensated absences payable (2,922) (80) (15,283) (18,285) Other postemployment benefits payable (2,021) (1,740) (1,430) (5,191) Deferred pension resources 47,085 26,845 17,024 90,954 Deferred post employment benefits 2,959 1,157 390 4,506 Net pension liability (132,331) (55,991) (45,579) (233,901) Net Cash Provided (Used) by Operating Activities 808,689$ (673,569)$ (518,585)$ (383,465)$ Supplemental Schedule of Noncash Capital and Related Financing Activities Amortization of bond discounts 93,328$ 14,367$ 10,937$ 118,632$ Purchase of capital assets on account -$ -$ 164,950$ 164,950$ Contributions of capital assets 49,360$ 24,317$ 1,404,623$ 1,478,300$ Assets acquired through a lease 109,852$ 109,851$ -$ 219,703$ Disposal of capital assets 44,139$ 44,139$ -$ 88,278$ City of Chanhassen, Minnesota Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended December 31, 2024 Business-type Activities - Enterprise Funds The notes to the financial statements are an integral part of this statement. 59 438 THIS PAGE IS LEFT BLANK INTENTIONALLY 60 439 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies A. Reporting Entity The City of Chanhassen, Minnesota (the City) was incorporated in 1967 and operates under the State of Minnesota Statutory Plan B form of government. The governing body consists of a five-member City council elected by voters of the City. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies. In accordance with GASB pronouncements and accounting principles generally accepted in the United States of America, the financial statements of the reporting entity should include those of the City (the primary government) and its component units. The component unit discussed below is included in the City’s reporting entity because of the significance of its operational or financial relationships with the City. Component Units The City has one component unit, the Economic Development Authority (EDA). The financial statements of the EDA are included as a blended component unit because its governing body is substantively the same as the City Council, the City is in a relationship of financial burden with the EDA, and because management of the City has operational responsibilities for the EDA. Separate financial statements for the EDA are not prepared. Jointly Governed Organizations Southwest Transit Commission – The City, in conjunction with the Cities of Eden Prairie and Chaska, established the Southwest Transit Commission (the Commission). The purpose of the Commission is to provide public transit service for the three cities. The Commission’s board is composed of two commissioners from each of the cities. Joint Powers Agreement Pursuant to a joint powers agreement dated April 14, 1994, the City and Independent School District No. 112 (ISD No. 112) jointly constructed the Chanhassen Recreation Center and Bluff Creek Elementary. The City entered into a revised joint powers agreement with ISD No. 112 in 2022 to provide for the mutual long-term use of the facility. According to the terms of the agreement, which expires in 2093, the City reimburses ISD No. 112 24% of the cost to operate and maintain the facility. 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 nonfiduciary activities of the City and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions 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. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. 61 440 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) C. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. 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 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. 62 441 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) The City reports the following major governmental funds: The General fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Civic Campus fund accounts for the revenues and expenditures related to the construction of the City’s Civic Campus facility. The Pavement Management Program (PMP) fund accounts for the City’s street reconstruction and other significant street maintenance projects. Individual property owners pay a portion of the cost of the annual project with assessments and the City funds its portion with the reserves created in this fund, an annual tax levy, and franchise fees. The City reports the following major proprietary funds: The Water fund accounts for the water service charges which are used to finance the water system operating expenses. The Sewer fund accounts for the sewer service charges which are used to finance the sanitary sewer system operating expenses. The Surface Water Management fund accounts for the surface water charges which are used to finance the surface water system operating expenses. As a general rule, the effect of interfund activity has been eliminated from government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sewer function and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. Deposits and Investments 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. The proprietary funds’ portion in the government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statement of cash flows. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of the funds. 63 442 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) The City may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 that received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers which is rated “A” or better; revenue obligations rated “AA” or better. 4. General obligations of the Minnesota Housing Finance Agency rated “A” or better. 5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to Minnesota Statute Section 126C.55. Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. 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. The City has the following recurring fair value measurements as of December 31, 2024: • US government agency securities of $4,397,710 are valued using quoted market prices (Level 1 inputs) • Municipal securities of $22,351,935 are valued using quoted market prices (Level 2 inputs) • Brokered certificates of deposit of $6,760,593 are valued using a matrix pricing model (Level 2 inputs) • U.S Treasury Obligations of $5,444,409 are valued using a matrix pricing model (Level 2 inputs) 64 443 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) Investment Policy The City’s investment policy incorporates Minnesota statutes as described above which reduces the City’s exposure to credit, custodial credit and interest rate risks. Specific risk information for the City is as follows: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list above. • Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s investment policy does not address custodial credit risk but typically limits its exposure by purchasing insured or registered investments. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The City’s investment policy states investments shall be diversified by limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities). • Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City’s investment policy requires the City to diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonable. E. Property Taxes The City Council annually adopts a tax levy in December and certifies it to the County for collection 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 Treasurer and tax settlements are made to the City during January, July and December each year. Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred inflow of resources for taxes not received within 60 days after year end in the fund financial statements. F. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. The City annually certifies delinquent utility accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. G. Special Assessments Special assessments represent the financing for public improvements paid for by benefiting property owners. These assessments are recorded as receivable 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 special assessments receivable are offset by deferred inflows of resources in the fund financial statements. 65 444 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) H. Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” I. Inventories and Prepaid Items Inventories of materials and supplies are recorded at cost, which approximates market, using the first in, first out (FIFO) method. Inventories consist of expendable supplies held for consumption. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The City recognizes prepaid items using the consumption method. J. Lease Receivable The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. K. Capital Assets Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of two years. 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. In the case of donations, the City values these capital assets at the estimated fair value of the item at the date of its donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and structures 10 - 30 Machinery and equipment (including software)3 - 10 Drainage systems 30 Water and sewer lines 30 Streets 30 Trails 25 Sidewalks 25 Other improvements 10 - 25 Temporary easements 2 66 445 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) L.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 two items which qualify for reporting in this category. Accordingly, the items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These items result from actuarial calculations and current year pension/OPEB contributions made subsequent to the measurement dates. M.Compensated Absences The City compensates all employees upon termination for unused vacation, sick, and PTO hours up to a maximum based upon length of service. The City compensates nonexempt employees for unused comp time. All vacation, PTO, and comp time is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Estimated use is recorded for nonvesting accumulating rights to receive sick pay benefits. An additional liability is recognized for that portion of accumulating sick leave benefits that is vested as severance pay. The General fund is typically used to liquidate governmental compensated absences. N.Pensions For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension liability. The total pension expense for the General Employee Plan (GERP), Police and Fire Plan (PEPFP), Public Employee Defined Contribution Plan (PEDCP), and Chanhassen Fire Relief Association (FRA) is as follows: GERP PEPFP PEDCP FRA Total City's proportionate share 211,023$ 258,296$ 2,484$ 37,288$ 509,091$ Proportionate share of State's contribution 2,008 3,433 - - 5,441 Total pension expense 213,031$ 261,729$ 2,484$ 37,288$ 514,532$ O.Long-term Obligations In the government-wide financial statements, long-term debt is reported as a liability in the statement of net position. The recognition of bond premiums and discounts are delayed and 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. 67 446 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) P.Deferred Inflows of Resources In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, special assessments, and intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position. The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the statement of net position and result from actuarial calculations involving net differences between projected and actual earnings on plan investments and changes in proportions. Furthermore, the City reports deferred lease resources related to cell tower leases which are recorded under GASB 87, and reported in the governmental funds and the statement of net position. Q.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 - Amounts that cannot be spent because they are not in spendable form, such as prepaid items. Restricted - Amounts related to externally imposed constraints established by creditors, grantors, or contributors; or constraints imposed by state statutory provisions. Committed - Amounts constrained for specific purposes that are 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 - 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 Manager and/or Finance Director. Unassigned - The residual classification for the General fund and also negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) restricted, 2) assigned, and 3) committed. The City’s policy for General Fund reserve balances is to maintain an unassigned fund balance at a minimum of 50% of the ensuing year’s budgeted tax levy to provide cash flow between property tax settlements. 68 447 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) R. Net Position In the government-wide financial statements, net position represents the difference between assets, deferred outflows of resources, liabilities and 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 acquire 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 other governments. c. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets”. 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. Note 2: Stewardship, Compliance and Accountability A. Budgetary Information An annual budget is adopted on a basis consistent with accounting principles generally accepted in the United States of America for the General fund and certain special revenue, debt service, and capital project funds. All annual appropriations lapse at fiscal year-end. The City does not use encumbrance accounting. The City Council adopts budgets prior to January 1. The budgets are prepared by fund, function, and activities. The budgets are adopted on a basis consistent with generally accepted accounting principles and all appropriations lapse at the end of the budget year to the extent that they have not been expended. The expenditures appropriated in the budget resolution may not legally exceed estimated revenues available from various sources. Formal budgetary integration is employed as a management control device during the year. Budget revisions between functions or activities may be made by the City Manager. The legal level of budgetary control is therefore at the fund level. There were no budget amendments made in 2024 in the General fund and certain special revenue, debt service, and capital project funds. All budget amendments are approved based on unanticipated expenditures and revenues encountered during the year. 69 448 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 2: Stewardship, Compliance and Accountability (Continued) B.Excess of Expenditures Over Appropriations For the year ended December 31, 2024, expenditures exceeded appropriations in the following funds: Excess of Expenditures Over Budget Actual Appropriations Charitable Gambling fund 50,000$ 72,147$ 22,147$ Cable TV fund 40,000 214,701 174,701 2016A G.O. Refunding Bonds Fund 453,725 454,151 426 Transportation Infrastructure Management fund 281,000 306,688 25,688 Frontier Development TIF #11 fund 265,964 278,002 12,038 Lake Place Senior Apt TIF #12 fund 118,000 147,842 29,842 Fund The excess expenditures were funded by greater than anticipated revenues and available fund balance. C.Deficit Fund Balance As of December 31, 2024, the following funds reported deficit fund balance: Amount Nonmajor Lake Place Senior Apt TIF #12 20,494 Fund The deficit is expected to be eliminated with future tax increment collections. Note 3: Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside party. 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 fair 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. 70 449 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Deposits and Investments (Continued) Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. Investments are carried at fair value. Investment and dividend income are recognized as revenue when earned. At year end, the City’s carrying amount of deposits was $2,295,717 and the bank balance was $2,354,302. Of the bank balance, $250,000 was covered by federal depository insurance and the remaining was covered by collateral in the City’s name. 71 450 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Deposits and Investments (Continued) Investments As of December 31, 2024, the City had the following investments that are insured or registered, or securities held by the City or its agent in the City’s name. Credit Segmented Quality/Time Ratings (1)Distribution (2)Amount Level 1 Level 2 Pooled Investments at Amortized Costs Brokered money market N/A Less than 1 year 10,631,451$ -$ -$ Non-pooled Investments at Fair Value U.S. government agency securities N/A Less than 1 year 2,973,540 2,973,540 - U.S. government agency securities N/A 1 to 3 years 1,424,170 1,424,170 - Municipal securities AA Less than 1 year 2,985,007 - 2,985,007 Municipal securities AA 1 to 3 years 1,141,875 - 1,141,875 Municipal securities AA More than 3 years 1,274,538 - 1,274,538 Municipal securities AA+1 to 3 years 1,272,414 - 1,272,414 Municipal securities AA+More than 3 years 623,154 - 623,154 Municipal securities AAA Less than 1 year 1,580,025 - 1,580,025 Municipal securities AAA 1 to 3 years 3,488,494 - 3,488,494 Municipal securities AAA More than 3 years 2,254,287 - 2,254,287 Municipal securities N/A 1 to 3 years 2,839,911 - 2,839,911 Municipal securities N/A More than 3 years 4,892,231 - 4,892,231 U.S. treasury obligations AAA Less than 1 year 5,444,409 - 5,444,409 Brokered certificates of deposit N/A Less than 1 year 2,690,552 - 2,690,552 Brokered certificates of deposit N/A 1 to 3 years 4,070,042 - 4,070,042 Total Investments 49,586,099$ 4,397,710$ 34,556,938$ (1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. Types of Investments Fair Value Measurement Using A reconciliation of cash and investments as shown on the statement of net position for the City follows: Primary Government Deposits 2,295,717$ Investments 49,586,099 Petty Cash 635 Total 51,882,451$ 72 451 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Capital Assets Capital asset activity for the year ended December 31, 2024, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets not being Depreciated Land 19,915,918$ 4,300$ -$ 19,920,218$ Permanent easements 2,826,748 - - 2,826,748 Construction in progress 3,826,559 15,853,577 (83,620) 19,596,516 Total Capital Assets not being Depreciated 26,569,225 15,857,877 (83,620) 42,343,482 Capital Assets, being Depreciated/Amortized Buildings and structures 24,852,984 - - 24,852,984 Temporary easements 3,436,870 - - 3,436,870 Right to use lease assets - vehicles 749,839 255,365 - 1,005,204 Machinery and equipment 9,782,613 346,529 (417,822) 9,711,320 Other improvements 12,762,939 - - 12,762,939 Infrastructure 125,572,931 73,688 - 125,646,619 Total Capital Assets being Depreciated/Amortized 177,158,176 675,582 (417,822) 177,415,936 Less Accumulated Depreciation/Amortization for Buildings and structures (11,933,636) (618,357) - (12,551,993) Temporary easements (3,436,870) - - (3,436,870) Right to use lease assets - vehicles (152,686) (220,541) - (373,227) Machinery and equipment (6,221,841) (494,076) 409,120 (6,306,797) Other improvements (5,967,402) (497,719) - (6,465,121) Infrastructure (103,481,065) (2,365,967) - (105,847,032) Total Accumulated Depreciation/Amortization (131,193,500) (4,196,660) 409,120 (134,981,040) Total Capital Assets being Depreciated/Amortized, Net 45,964,676 (3,521,078) (8,702) 42,434,896 Governmental Activities Capital Assets, Net 72,533,901$ 12,336,799$ (92,322)$ 84,778,378$ 73 452 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Capital Assets (Continued) Beginning Ending Balance Increases Decreases Balance Business-type Activities Capital Assets not being Depreciated Land 2,116,335$ -$ -$ 2,116,335$ Permanent easements 7,088,204 - - 7,088,204 Construction in progress 3,126,181 4,897,214 (425,567) 7,597,828 Total Capital Assets not being Depreciated 12,330,720 4,897,214 (425,567) 16,802,367 Capital Assets being Depreciated/Amortized Buildings and structures 28,189,036 - - 28,189,036 Right to use lease assets - vehicles 48,901 219,703 - 268,604 Machinery and equipment 2,648,473 74,138 (104,716) 2,617,895 Other improvements 127,781,875 425,567 - 128,207,442 Total Capital Assets being Depreciated/Amortized 158,668,285 719,408 (104,716) 159,282,977 Less Accumulated Depreciation/Amortization for Buildings and structures (5,545,637) (565,335) - (6,110,972) Right to use lease assets - vehicles (13,142) (39,551) - (52,693) Machinery and equipment (1,439,612) (208,551) 88,278 (1,559,885) Other improvements (84,898,379) (3,063,061) - (87,961,440) Total Accumulated Depreciation/Amortization (91,896,770) (3,876,498) 88,278 (95,684,990) Total Capital Assets being Depreciated/Amortized, Net 66,771,515 (3,157,090) (16,438) 63,597,987 Business-type Activities Capital Assets, Net 79,102,235$ 1,740,124$ (442,005)$ 80,400,354$ 74 453 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 4: Capital Assets (Continued) Depreciation/amortization expense was charged to functions/programs of the City as follows: Governmental Activities General government 303,836$ Public safety 277,509 Public works 2,579,410 Culture and recreation 1,031,558 Community development 4,347 Total Depreciation/Amortization Expense - Governmental Activities 4,196,660$ Business-type Activities Water 1,950,312$ Sewer 872,581 Surface water management 1,053,605 Total Depreciation/Amortization Expense - Business-type Activities 3,876,498$ Note 5: Construction Commitments The City has active construction projects as of December 31, 2024. The projects include various street and road improvements and public facilities projects. At year end, the City’s commitments with contractors are as follows: Remaining Spent-to-Date Commitment Civic Campus - City Hall 5,980,192$ 20,070,301$ Galpin Blvd Improvements 7,790,788 8,196,607 2023 Street Rehab Project 23-01 5,158,680 202,133 2024 Pavement Rehab #24-01 6,904,530 815,698 Hwy 101-Pioneer to Flying Cloud - construction 16,534,742 482,819 2024 I & I 11,650 348,350 2023 Pond Maintenance 214,047 27,755 2024 Pond Maintenance - 378,833 Total 42,594,629$ 30,522,496$ Project 75 454 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 6: Interfund Receivables, Payables, and Transfers The composition of interfund balances as of December 31, 2024 are as follows: Amount Due from/to other Funds Governmental Governmental General Civic campus 250,000$ Nonmajor governmental 21,000 Business-type Business-type Water Surface Water Management 1,060,000 Total Due from/to other Funds 1,331,000$ Receivable Fund Payable Fund All interfund loan balances represent a transfer of funds to cover a cash deficit. The composition of interfund transfers for the year ended December 31, 2024 is as follows: Other Governmental General Funds Total Transfers Out Other Governmental Funds 1,737,106$ 938,120$ 2,675,226$ Transfers in Fund During the year, transfers were used for the following: •Budgeted transfer of $30,000 from the Cable TV fund to the General fund for communication expenses incurred in the General fund. •Transfer of $938,120 from the Grant fund to the Park Development fund for Lake Ann Preserve Project actual costs for the year. •Transfer of $1,407,106 from the Grant fund to the General fund for budgeted public safety costs which were funded by ARPA revenues. •Budgeted transfer of $300,000 for the use of Public Safety Aid from the Grant fund to the General fund. Note 7: Lease Receivable The City leases space on its water towers for cellular tower antenna sites. The leases are non-cancellable for a period of five years, with one to four renewal periods of five years each at the lessee’s option. The City considers the likelihood of these options being exercised to be greater than 50%. The agreements call for varying annual lease payments with increases of 2% to 4% per year. The lease receivables are measured at the present value of the future minimum lease payments expected to be received during the lease term at a discount rate of 3% which is based on the rate available to finance equipment over the same time periods. At December 31, 2024, the City recorded $3,271,051 in lease receivables and deferred inflows of resources for these arrangements. Lease related inflows of resources (e.g. lease revenue) recognized during the year ended December 31, 2024 was $335,048. Of this amount, $101,991 was interest revenue. No other variable lease payments were received. 76 455 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 8: Long-term Liabilities General Obligation Improvement Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both general government and proprietary activities. These bonds are reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. In addition, general obligation bonds have been issued to refund both general obligation and revenue bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the City. The G.O. Improvement Bonds have been issued to finance improvements. They will be repaid with special assessment collections and ad valorem tax levies. General obligation bonds currently outstanding are as follows: Authorized Issue Maturity Balance at and Issued Date Date Year End G.O. Bonds, Series 2016A 4,805,000$ 2.00 - 3.00 %03/03/16 02/01/30 2,620,000$ G.O. Capital Improvement Plan Bonds Series 2024A 24,250,000 4.00 - 5.00 08/15/24 02/01/54 24,250,000 Total General Obligation Bonds 26,870,000$ Interest RateDescription Annual debt service requirements to maturity for general obligation improvement bonds are as follows: Year Ending December 31,Principal Interest Total 2025 410,000$ 1,060,302$ 1,470,302$ 2026 420,000 1,092,950 1,512,950 2027 510,000 1,082,450 1,592,450 2028 520,000 1,069,750 1,589,750 2029 535,000 1,056,800 1,591,800 2030 - 2034 2,970,000 4,955,775 7,925,775 2035 - 2039 3,765,000 4,126,625 7,891,625 2040 - 2044 4,785,000 3,104,575 7,889,575 2045 - 2049 5,845,000 2,025,100 7,870,100 2050 - 2054 7,110,000 733,000 7,843,000 Total 26,870,000$ 20,307,327$ 47,177,327$ Governmental Activities General Obligation Revenue Bonds The following bonds will be repaid solely from revenue derived from the activities of the fund. They are backed by the full faith and credit of the City. Annual net operating revenues, principal and interest payments, and the percentage of revenue required to cover principal and interest payments are as follows: Surface Water Water Sewer Management Net Operating Revenues 4,143,414$ 4,229,359$ 2,112,116$ Principal and Interest 2,056,234 204,450 143,159 Percentage of Revenues 50%5%7% 77 456 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 8: Long-term Liabilities (Continued) The components of the general obligation revenues bonds are as follows: Authorized Issue Maturity Balance at and Issued Date Date Year End G.O. Water Revenue Refunding Bonds, Series 2011B 3,720,000$ 2.00 - 3.00 %10/06/11 02/01/25 575,000$ G.O. Water Revenue Bonds, Series 2016A 1,565,000 2.00 - 3.00 03/03/16 02/01/26 345,000 G.O. Water Revenue Bonds, Series 2016B 3,630,000 3.50 - 4.00 12/29/16 02/01/42 3,630,000 G.O Water Revenue Bonds, Series, 2017A 10,000,000 2.00 - 4.00 02/01/17 02/01/38 8,670,000 G.O. Water Revenue Bonds, Series 2018A 3,595,000 3.00 - 4.00 03/15/18 02/01/30 1,950,000 G.O. Water Revenue Bonds, Series 2020A 3,415,000 2.00 - 3.00 04/02/20 02/01/31 2,455,000 G.O. Sewer Revenue Bonds, Series 2020A 1,540,000 2.00 - 3.00 04/02/20 02/01/31 1,095,000 G.O. Surface Water Revenue Bonds, Series 2020A 1,265,000 2.00 - 3.00 04/02/20 02/01/31 800,000 Total G.O. Revenue Bonds 19,520,000$ Rate Interest Description Annual debt service requirements to maturity for general obligation revenue bonds are as follows: Year Ending December 31,Principal Interest Total 2025 1,810,000$ 576,763$ 2,386,763$ 2026 1,275,000 530,538 1,805,538 2027 1,550,000 488,188 2,038,188 2028 1,600,000 440,938 2,040,938 2029 1,650,000 395,563 2,045,563 2030 - 2034 4,980,000 1,474,713 6,454,713 2035 - 2039 3,990,000 858,650 4,848,650 2040 - 2042 2,665,000 161,628 2,826,628 Total 19,520,000$ 4,926,981$ 24,446,981$ Business-type Activities 78 457 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 8: Long-term Liabilities (Continued) Project Financing The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard – Phase 3 project, and a Joint Powers Agreement with Carver County for a pedestrian trail to the Arboretum. The City is paying its share of these projects at 0% interest according to the following schedule: Year Ending Lyman Pedestrian December 31,Boulevard Trail Total 2025 111,108$ 96,309$ 207,417$ Lease Payable Lease agreements are summarized as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental activities 614,439$ 255,365$ (194,623)$ 675,181$ 244,098$ Business-type activities 37,140 219,703 (38,207) 218,636 79,498 Total lease liability 651,579$ 475,068$ (232,830)$ 893,817$ 323,596$ The City leases multiple vehicles from Enterprise Rent-a-Car. As of December 31, 2024, the City had 40 outstanding vehicle leases, 14 of which were entered into during 2024. Each lease requires 48 monthly payments ranging from $516 to $1,082. The leases are all under a master lease agreement with individual schedules for each vehicle. The lease liability is measured at discount rates ranging from 10.0% to 13.3% as stated in the lease agreements. Annual requirements to amortize long-term obligations and related interest are as follows: Year Ending December 31,Principal Interest Total Principal Interest Total 2025 244,098$ 63,563$ 307,661$ 79,498$ 23,562$ 103,060$ 2026 246,298 37,083 283,381 86,517 12,874 99,391 2027 134,908 12,394 147,302 52,621 2,337 54,958 2028 43,507 2,576 46,083 - - - 2029 6,370 141 6,511 - - - Total 675,181$ 115,757$ 790,938$ 218,636$ 38,773$ 257,409$ Governmental Activities Business-type Activities 79 458 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 8: Long-term Liabilities (Continued) Changes in Long-term Liabilities During the year ended December 31, 2024, the following changes occurred in long-term liabilities: Beginning Ending Due Within Balance Increases Decreases Balance One Year Governmental Activities Bonds Payable General obligation bonds 3,015,000$ 24,250,000$ (395,000)$ 26,870,000$ 410,000$ Bond premium 111,893 1,192,800 (15,985) 1,288,708 - Project financing 448,727 - (241,310) 207,417 207,417 Lease payable 614,439 255,365 (194,623) 675,181 244,098 Compensated absences*678,920 - (488) 678,432 113,230 Governmental Activity Long-term Liabilities 4,868,979$ 25,698,165$ (847,406)$ 29,719,738$ 974,745$ Business-type Activities Bonds Payable G.O. revenue bonds 21,275,000$ -$ (1,755,000)$ 19,520,000$ 1,810,000$ Bond premium 894,245 - (118,632) 775,613 - Lease payable 37,140 219,703 (38,207) 218,636 79,498 Compensated absences*283,612 - (18,285) 265,327 44,282 Business-type Activity Long-term Liabilities 22,489,997$ 219,703$ (1,930,124)$ 20,779,576$ 1,933,780$ *The change in compensated absences is presented as a net change. Nonexchange Financial Guarantee of Debt On August 1, 2014, the Carver County Community Development Agency (CDA), a legally separate entity from the City, issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable Housing Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of prior bonds and to fund certain capital improvements of the Centennial Hill Apartments, which are located within the City. In accordance with Minnesota Statutes Section 469.034, Subd. 2, the City has pledged its full faith and credit and taxing powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that the Carver County CDA is unable to pay the debt service on the bonds due to insufficient housing revenues and cash reserves, the City is obligated to pay the debt service. The City’s guarantee extends until the bonds have fully matured, which is scheduled to occur in 2034. The total amount of outstanding guaranteed debt, including interest, at December 31, 2024, is $3,126,701. The City’s management does not expect the City will be required to make any debt service payments towards these bonds. Accordingly, the bonds are not reflected in the financial statements of the City. 80 459 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 8: Long-term Liabilities (Continued) Conduit Debt Obligations The City of Chanhassen has issued revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from the private-sector entity served by the bond issuance. Neither the City of Chanhassen or the State of Minnesota, or any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2024, there was one bond outstanding with Presbyterian Homes with a principal amount of $5,107,756. Authorized Issue Maturity Balance at and Issued Date Date Year End Presbyterian Homes, Series 2014B 9,300,000$ June 2014 2034 5,107,756$ Project Name 81 460 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 9: Components of Fund Balance At December 31, 2024, portions of the City’s fund balance are not available for appropriation due to not being in spendable form (nonspendable), legal restrictions (restricted), City Council action (committed), policy and/or intent (assigned), and available for spending (unassigned). The following is a summary of the components of fund balance: Pavement Other General Civic Management Governmental Fund Campus Program (PMP)Funds Totals Nonspendable Prepaid items 135,138$ -$ -$ -$ 135,138$ Restricted for Debt service -$ -$ -$ 1,317,101$ 1,317,101$ Tax increment - - - 54,927 54,927 Capital projects - 16,130,983 - 672,134 16,803,117 Communications - -- 43,886 43,886 Public safety - -- 950,174 950,174 Local affordable housing aid - -- 126,855 126,855 Total Restricted -$ 16,130,983$ -$ 3,165,077$ 19,296,060$ Commited for Cemetery -$ -$ -$ 72,679$ 72,679$ Cable TV - - - 71,680 71,680 Total Committed -$ -$ -$ 144,359$ 144,359$ Assigned for Payout of compensated absences for retirement 100,000$ -$ -$ -$ 100,000$ Laserfiche records scanning 100,000 - - - 100,000 Land purchase - new community - center 2,100,000 - - - 2,100,000 Hardware/software for new city hall 165,000 - - - 165,000 Grants - - - 148,217 148,217 Lake Ann Park Preserve 1,675,000 - - - 1,675,000 Fire relief pension conversion contractual services 15,000 - - - 15,000 Health insurance premiums 30,000 - - - 30,000 Tree/planning contracting 40,000 - - - 40,000 Capital improvements - - 771,562 3,053,453 3,825,015 Debt service reserve - - - 1,126,781 1,126,781 Total Assigned 4,225,000$ -$ 771,562$ 4,328,451$ 9,325,013$ Unassigned 7,762,840$ -$ -$ (20,494)$ 7,742,346$ Total Fund Balance 12,122,978$ 16,130,983$ 771,562$ 7,617,393$ 36,642,916$ 82 461 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide A. Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 353E, 353G and 356. Minnesota Statutes chapter 356 defines each plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan (General Plan) Membership in the General Plan includes employees of counties, cities, townships, schools in non-certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. Public Employees Police and Fire Plan (Police and Fire Plan) Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the entity’s governing body. The resolution must state that the position meets plan requirements. B. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is “vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age and meet the vesting requirements qualify for a retirement benefit. General Plan Benefits The General Plan requires three years of service to vest. Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.2 percent of the highest average salary for each of the first 10 years of service and 1.7 percent for each additional year. Under the Level formula, General Plan members receive 1.7 percent of highest average salary for all years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25 percent for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25 percent for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. 83 462 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide (Continued) Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.5 percent. The 2024 annual increase was 1.5 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a prorated increase. Police and Fire Plan Benefits Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five years, vesting increases by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 percent each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent. 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 chapters 353, 353E, 353G and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state Legislature. General Employees Plan Contributions General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General Employees Plan for the years ending December 31, 2024, 2023 and 2022, were $513,282, $490,256 and $477,007, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. Police and Fire Plan Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024 and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the Police and Fire Plan for the years ending December 31, 2024, 2023 and, 2022 were $161,628, $135,550 and $86,742, respectively. The City’s contributions were equal to the required contributions for each year as set by state statute. 84 463 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide (Continued) D. Pension Costs General Employees Fund Pension Costs City's Proportionate Share of the Net Pension Liability 2,896,284$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 74,892 Total 2,971,176$ Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 276,663$ -$ Changes in Actuarial Assumptions 14,981 1,132,541 Net Difference Between Projected and Actual Investment Earnings - 771,726 Changes in Proportion - 121,232 Contributions Paid to PERA Subsequent to the Measurement Date 259,638 - Total 551,282$ 2,025,499$ At December 31, 2024, the City reported a liability of $2,896,284 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 $74,892. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0783 percent at the end of the measurement period and 0.0819 percent for the beginning of the period. For the year ended December 31, 2024, the City recognized pension expense of $211,023 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $2,008 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $133,256 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the General Employees Fund. At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 85 464 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide (Continued) (957,955)$ (194,743) (359,174) (221,983) Police and Fire Fund Pension Costs City's Proportionate Share of the Net Pension Liability 805,121$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 30,691 Total 835,812$ 2026 The $259,638 reported as deferred outflows of resources related to pensions resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: 2025 2027 2028 At December 31, 2024, the City reported a liability of $805,121 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0612 percent at the end of the measurement period and 0.0506 percent for the beginning of the period. The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation, additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $30,691. For the year ended December 31, 2024, the City recognized pension expense of $258,296 for its proportionate share of the Police and Fire Plan’s pension expense. In addition, the City recognized an additional $3,433 as pension expense (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 $28.4 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $17,378 for the year ended December 31, 2024 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on- behalf contributions to the Police and Fire Fund. 86 465 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide (Continued) Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 244,130$ -$ Changes in Actuarial Assumptions 416,411 978,994 Net Difference Between Projected and Actual Investment Earnings - 256,603 Changes in Proportion 558,746 1,414 Contributions Paid to PERA Subsequent to the Measurement Date 78,137 - Total 1,297,424$ 1,237,011$ 62,978$ 148,214 (10,566) (236,904) 18,553 E. Long-term Expected Return on Investment 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 % 2026 At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: The $78,137 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2025 2027 2028 2029 The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-term Target Expected Return Asset Class Allocation on Investment 87 466 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide (Continued) F. Actuarial Assumptions The following changes in actuarial assumptions and plan provisions occurred in 2024: General Employees Fund Changes in Actuarial Assumptions Changes in Plan Provisions Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023 actuarial valuation. The Police and Fire Plan were reviewed in 2024. PERA anticipates the experience study will be approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation. The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to determine the total liability is 7.0%. The 7.0% assumption is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range. Inflation is assumed to be 2.25% for the General Employees Plan and Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1.0% for the Police and Fire Plan. 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 in annual increments 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. - Rates of merit and seniority were adjusted, resulting in slightly higher rates. - Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. - Minor increase in assumed withdrawals for males and females. - Lower rates of disability. - Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. - Minor changes to form of payment assumptions for male and female retirees. - Minor changes to assumptions made with respect to missing participant data. - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors were updated to reflect the changes in assumptions. 88 467 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 10: Defined Benefit Pension Plans - Statewide (Continued) Police and Fire Fund Changes in Actuarial Assumptions Changes in Plan Provisions G. Discount Rate H. Pension Liability Sensitivity 1 Percent 1 Percent Decrease (6.0%)Current (7.0%)Increase (8.0%) General Employees Fund 6,325,951$ 2,896,284$ 75,071$ Police and Fire Fund 1,902,659 805,121 (96,187) 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. - There were no changes in actuarial assumptions since the previous valuation. - The State contribution of $9 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded status for one year. The discount rate used to measure the total pension liability in 2024 was 7.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and Fire Plans were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 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 one percentage point lower or one percentage point higher than the current discount rate: 89 468 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 11: Defined Benefit Pension Plans - Fire Relief Association A. Plan Description All members of the City of Chanhassen Fire Department (the Department) are covered by a defined benefit plan administered by the City of Chanhassen Fire Department Relief Association (the Association). As of December 31, 2023, the plan covered 32 active firefighters and 4 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. The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the Department’s membership. Funding for the Association is derived from an insurance premium tax in accordance with the Volunteer Firefighter’s Relief Association Financing Guidelines Act of 1971 (chapter 261 as amended by chapter 509 of Minnesota statutes 1980). Funds are also derived from investment income. B. Benefits Provided Twenty Year Service Pension Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire Department, has served at least twenty years of active service with such department before retirement, and has been a member of the Relief Association in good standing at least ten years prior to such retirement shall be entitled to receive either a monthly lifetime service pension or a defined benefit lump sum pension. After April 1997, each member shall be entitled to receive a defined benefit lump sum pension. Monthly service pensions shall be $410 per month. Defined benefit service pensions per year of service shall be $7,500. The maximum service pension shall not exceed the maximum service pension amount permitted under the flexible pension maximums pursuant to Minnesota Statute Section 424A.02, Subdivision 3. Members who choose the lump sum receive no additional interest accrual. Ten Year Service but Less than Twenty Year Service Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at least five years of active service with such department before retirement but has not served at least 20 years of active service; and, who has been a member of the Relief Association in good standing at least ten years prior to such retirement, shall be entitled to either a pro-rated monthly service pension or a pro-rated lump sum service pension based on the percentages in the following table: More Than but Less Than 5 years 6 years 40% 6 7 44 7 8 48 8 9 52 9 10 56 10 11 60 11 12 64 12 13 68 13 14 72 14 15 76 15 16 80 16 17 84 17 18 88 18 19 92 19 20 96 20 100 90 469 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued) The payment amount will be calculated by using the amount payable per year of service in effect at the time of such early retirement, multiplied by the number of accumulated years of service, multiplied by the appropriate percentage as defined above. During the time a member is on early-vested pension, he or she will not be eligible for disability benefits. Survivors Benefit Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse, they shall receive a monthly pension for a guaranteed fifteen year period. After April 1997, an eligible surviving spouse shall receive a lump sum payment calculated in accordance with the by-laws. If there is no surviving spouse, then the deceased member’s designated beneficiary or their estate would receive the payment. A surviving spouse of a member receiving a monthly pension shall receive 50% of the member’s monthly benefit, based on the date of death. Permanent Disability If any member of the Relief Association contracts sickness or injury, which incapacitates the member from attending to their business, from causes outside or within their line of duty, and a physician’s report shows that the member is unable to perform their duties, then they are entitled to their full accrued lump sum benefit, payable immediately. Temporary Disability Any member of the Relief Association who becomes temporarily incapacitated from attending to their business due to illness of injury, sustained in the performance of such business, and is unable to work for a period of one week or longer, shall be paid a benefit of $5 per day for a period of no longer than 120 days in any one fiscal year, providing the member is under the care of a physician or doctor during this period. Death Benefit Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a death benefit in an amount equivalent to the accrued service pension. C. Contributions Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes and voluntary City contributions (if applicable). The State of Minnesota contributed $251,656 of fire state aid to the plan on behalf of the City Fire Department for the year ended December 31, 2023, which was recorded as a revenue. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily-required contributions to the plan for the year ended December 31, 2023 was $0. The City’s contributions were equal to the required contributions as set by state statute. The City made no voluntary contributions to the plan. The firefighter has no obligation to contribute to the plan. 91 470 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued) D. Pension Costs At December 31, 2024, the City reported a net pension liability (asset) of $38,847 for the Volunteer Firefighter Fund. The net pension liability (asset) was measured as of December 31, 2023. The following table presents the changes in net pension liability (asset) during the year: Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (Asset) (a)(b)(a-b) Beginning Balance January 1, 2023 2,741,119$ 2,080,592$ 660,527$ Changes for the Year Service cost 127,784 - 127,784 Interest 142,367 - 142,367 Differences between expected and actual experience (520,791) - (520,791) Contributions - member - 253,656 (253,656) Net investment income - 220,398 (220,398) Benefit payments (43,133) (43,133) - Administrative expense - (25,320) 25,320 Total Net Changes (293,773) 405,601 (699,374) Ending Balance December 31, 2023 2,447,346$ 2,486,193$ (38,847)$ For the year ended December 31, 2024, the City recognized pension expense of $37,288. At December 31, 2024, the City reported its deferred outflows of resources and deferred inflows of resources, and its contributions subsequent to the measurement date, to the plan from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Experience 15,270$ 422,185$ Changes in Actuarial Assumptions 11,687 - Net Difference Between Projected and Actual Earnings on Plan Investments 270,200 151,644 Contributions to Plan Subsequent to the Measurement Date 274,071 - Total 571,228$ 573,829$ 92 471 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued) Deferred outflows of resources totaling $274,071 related to pensions resulting from the City’s contributions to the plan subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows of resources related to the plan will be recognized in pension expense as follows: 2025 (109,321)$ 2026 (82,528) 2027 (62,477) 2028 (22,346) E. Actuarial Assumptions The total pension liability at December 31, 2024 was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Inflation Rate 3.00% Investment Rate of Return 5.00% Discount Rate 5.00% F. Discount Rate The discount rate used to measure the total pension liability was 5.0 percent. The projection of cash flows used to determine the discount rate assumed that contributions to the plan will be made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. Pension Liability Sensitivity The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a discount rate 1 percent lower or 1 percent higher than the current discount rate: 1 Percent 1 Percent Decrease (4.0%)Current (5.0%)Increase (6.0%) Defined Benefit Plan 89,233$ (38,847)$ (156,610)$ 93 472 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued) H. Asset Allocation The long-term expected rate of return on pension plan investments was set based on the plan’s target investment allocation along with long-term return expectations by asset class. All economic assumptions were based on input from various published sources and projected future financial data available. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Class Stock & Mutual Funds 60.00 %5.20 % Fixed Income 30.00 0.60 Other 5.00 0.60 Cash 5.00 - Total 100.00 % Long-term Target Expected Real Allocation Rate of Return I. Pension Plan Fiduciary Net Position The Association issues a publicly available financial report. The report may be obtained by writing to the Chanhassen Firefighters Relief Association, PO Box 97, 7610 Laredo Drive, Chanhassen, MN 55317. 94 473 Note 12: Postemployment Benefits Other Than Pensions A. Plan Description At December 31, 2024, the following employees were covered by the benefit terms: Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 4 Active Plan Members 84 Total Plan Members 88 B. Funding Policy C. Actuarial Methods and Assumptions City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 The City operates a single-employer retiree benefit plan (“the Plan”) that provides health, life, and dental insurance to eligible employees and their families through the City’s health insurance plan. The full cost of the benefits is covered by the plan. Benefit and eligibility provisions are established through negotiations between the City and various unions representing City employees and are renegotiated at the end of each agreement. The Plan does not issue a publicly available report and is not administered through a trust or equivalent arrangement and thus there are no assets accumulated in a GASB-compliant trust. The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Employees who satisfy the rule of 80 or attain age 55 and have completed 10 years of service at termination can immediately commence medical benefits. Retirees may obtain dependent coverage while the participating retiree is under age 65. Covered spouses may continue coverage after the retiree’s death. The surviving spouse of an active employee may continue coverage in the group health insurance plan after the employee’s death. All health care is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. For the year ended December 31, 2024, the City's average contribution rate was 2.79 percent of covered-employee payroll. For the fiscal year 2024, the City did not directly contribute to the plan. The General fund is typically used to liquidate the governmental portion of the net OPEB obligation. The City’s total OPEB liability of $210,955 was measured as of December 31, 2024, and the OPEB liability was determined by an actuarial valuation as of January 1, 2025. Roll forward procedures were used to roll forward the total OPEB liability to the measurement date. 95 474 Note 12: Postemployment Benefits Other Than Pensions (Continued) Discount Rate 4.28% Expected Long-Term Investment Return N/A 20-Year Municipal Bond Yield 4.00% Inflation Rate 3.00% Salary Increases 7.5% in 2024, trending down 0.5% every year after to an ultimate rate of 4.5% D. Changes in the Total OPEB Liability Total OPEB Liability Balances at December 31, 2023 255,651$ Changes for the Year Service Costs 21,713 Interest Costs 10,537 Assumption Changes (3,197) Differences between expected and actual experience (45,583) Benefit Payment (28,166) Net Changes (44,696) Balances at December 31, 2024 210,955$ Since the prior measurement date, the following assumptions changed: Since the prior measurement date, the following plan provisions changed: Since the prior measurement date, the following benefit terms changed: The total OPEB liability in the January 1, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 The actuarial assumptions used in the valuation were based on input from a variety of published sources of historical and projected future financial data. Each assumption was reviewed for reasonableness with the source information as well as for consistency with the other economic assumptions. • None Mortality assumptions are set to reflect general population trends based upon Pub-2010 Mortality tables and the most recent generational projected scale MP-2021. • None 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 20-year municipal bond rate. The equivalent single rate is the discount rate. • The discount rate changed from 4.00% to 4.28%. • Health care cost trend rate changed from 7.50% decreasing to 4.50% to 8.00% decreasing to 4.50%. 96 475 Note 12: Postemployment Benefits Other Than Pensions (Continued) E. Sensitivity of the Net OPEB Liability 1 Percent Discount Rate 1 Percent Decrease 3.28%Current 4.28%Increase 5.28% 222,671$ 210,955$ 200,060$ Healthcare Cost 1 Percent Decrease Trend Rates 1 Percent Increase 193,755$ 210,955$ 230,911$ F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 53,427$ 81,776$ Changes in Actuarial Assumptions 23,655 15,498 Total 77,082$ 97,274$ (8,002)$ (8,006) (7,186) 579 377 Thereafter 2,046 Notes to the Financial Statements December 31, 2024 2028 6.50% Decreasing to 3.50% 7.50% Decreasing to 4.50% 8.50% Decreasing to 5.50% 2029 2025 2027 2026 Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in pension expense as follows: The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: For the year ended December 31, 2024, the City Recognized OPEB expense of $16,530. At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: The following presents the City’s net OPEB liability, as well as what the City’s net OPEB liability would be if it were calculated using a healthcare cost trend rate one percentage point lower or one percentage point higher than the current healthcare cost trend rate: City of Chanhassen, Minnesota 97 476 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 13: Other Information A. Legal Debt Margin In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent of the market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and therefore, excludes debt financed partially or entirely by special assessments, enterprise fund revenues, or tax increments. B. 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 for which the City carries insurance. The City obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing pool with approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City’s coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City’s management is not aware of any incurred but not reported claims. C. Tax Abatements The City occasionally provides tax abatements pursuant to Minnesota Statutes Sections 469.174 to 469.1794 (Tax Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage private development, redevelopment, renovation and renewal, growth in low-to-moderate-income housing, and economic development within the City. TIF captures the increase in tax capacity and property taxes from development or redevelopment to provide funding for the related project. The City has two tax increment districts, which have outstanding pay-as-you-go revenue notes. The notes are not a general obligation of the City and is payable solely from available tax increments. Accordingly, the notes are not reflected in the financial statements of the City. Details of the pay-as-you-go revenue notes are as follows: Tax Increment Revenue Note (Frontier Redevelopment) - issued in 2020 in the principal sum of $1,300,000 with an interest rate of 5.0% per annum. Principal and interest payments shall be paid commencing August 1, 2020, and each February 1 and August 1 thereafter to and including February 1, 2045. Payments are payable solely from tax increments, which shall mean 95% of the tax increments derived from the tax increment property and received by the City. The payment reimburses the developer for street, utilities, right-of-way, land acquisition, and other public improvements. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2045. Current year abatement (TIF note payments) amount to $276,445. At December 31, 2024, the principal amount outstanding on the note was $237,646. Tax Increment Revenue Note (Lakes at Chanhassen LLC) - issued in 2023 in the principal sum of $3,065,000 with no interest. Principal and interest payments shall be paid commencing August 1, 2023, and each February 1 and August 1 thereafter to and including February 1, 2042. Payments are payable solely from tax increments, which shall mean 90% of the tax increments derived from the tax increment property and received by the City. The payment reimburses the developer for the construction of affordable housing. The City shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2042. Current year abatement (TIF note payments) amount to $138,227. At December 31, 2024, the principal amount outstanding on the note was $2,902,647. 98 477 City of Chanhassen, Minnesota Notes to the Financial Statements December 31, 2024 Note 14: Adjustments to Beginning Balances and Changes in Accounting Principle Change within Major and Nonmajor Fund Reporting During fiscal year 2024, the Grant fund was determined to be nonmajor and the Civic Campus fund determined to be major. The effects of the changes within the financial reporting entity are shown in the applicable financial statements. Change in Accounting Principle During fiscal year 2024, the City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement No. 100, Accounting Changes and Error Corrections, and Statement No. 101, Compensated Absences, for the year ended December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of the components of the financial statements. There were no adjustments or restatements of beginning balances needed for the adoption of these statements. 99 478 THIS PAGE IS LEFT BLANK INTENTIONALLY 100 479 REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHANHASSEN CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 101 480 Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Plan State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2024 0.0783 %2,896,284$ 74,892$ 2,971,176$ 6,630,559$ 43.7 %86.7 % 6/30/2023 0.0819 4,579,756 95,109 4,674,865 6,511,778 70.3 83.1 6/30/2022 0.0830 6,573,627 116,850 6,690,477 6,058,627 108.5 76.7 6/30/2021 0.0768 3,279,704 59,983 3,339,687 5,654,500 58.0 87.0 6/30/2020 0.0741 4,442,634 83,038 4,525,672 5,332,860 83.3 79.0 6/30/2019 0.0727 4,019,420 74,330 4,093,750 5,158,453 77.9 80.2 6/30/2018 0.0760 4,216,168 77,700 4,293,868 5,036,733 83.7 79.5 6/30/2017 0.0751 4,794,334 32,757 4,827,091 4,869,567 98.5 75.9 6/30/2016 0.0759 6,162,704 40,405 6,203,109 4,703,280 131.0 68.9 6/30/2015 0.0791 4,099,373 - 4,099,373 2,312,540 177.3 78.2 Schedule of Employer’s PERA Contributions - General Employees Fund Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered Year Contribution Contribution (Excess)Payroll Payroll Ending (a)(b)(a-b)(c)(b/c) 12/31/2024 513,282$ 513,282$ -$ 6,843,766$ 7.50 % 12/31/2023 490,256 490,256 - 6,536,751 7.50 12/31/2022 477,007 477,007 - 6,360,093 7.50 12/31/2021 438,328 438,328 - 5,844,373 7.50 12/31/2020 409,847 409,847 - 5,464,627 7.50 12/31/2019 390,082 390,082 - 5,201,093 7.50 12/31/2018 383,686 383,686 - 5,115,813 7.50 12/31/2017 371,824 371,824 - 4,957,653 7.50 12/31/2016 358,611 358,611 - 4,781,480 7.50 12/31/2015 346,881 346,881 - 4,625,080 7.50 Proportionate City of Chanhassen, Minnesota Required Supplementary Information For the Year Ended December 31, 2024 City's Share of the Net Pension Liability as a Plan Fiduciary City's Percentage of Net Position Proportion of Covered as a Percentage the Net Pension Payroll of the Total Liability (a/c)Pension Liability 102 481 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Notes to the Required Supplementary Information - General Employee Retirement Plan Changes in Actuarial Assumptions 2024 - The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the most recent experience study (dated June 29, 2023): Rates of merit and seniority were adjusted, resulting in slightly higher rates. Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. Minor increase in assumed withdrawals for males and females. Lower rates of disability. Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. Minor changes to form of payment assumptions for male and female retirees. Minor changes to assumptions made with respect to missing participant data. 2023 - The investment return and single discount rates were changed from 6.5 percent to 7.0 percent. 2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. 2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%. Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 2019 - The mortality projection scale was changed from MP-2017 to MP-2018. 2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year. 2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter. 103 482 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Notes to the Required Supplementary Information - General Employee Retirement Plan (Continued) Changes in Plan Provisions 2024 - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. 2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit increase delay for early retirements on or after January 1, 2024 was eliminated. A one-time non-compounding benefit increase of 2.5 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 2019 - 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 - 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 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 percent, 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 1.0 percent per year with a provision to increase to 2.5 percent upon attainment of 90.0 percent funding ratio to 50.0 percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more than 1.5 percent, 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 - 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 - There were no changes in plan provisions since the previous valuation. 2015 - 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 $892 million. Upon consolidation, state and employer contributions were revised. 104 483 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Plan State's Proportionate City's Share of Proportionate the Net Pension Share of Liability City's Fiscal the Net Pension Associated with Covered Year Liability the City Total Payroll Ending (a)(b)(a+b)(c) 6/30/2024 0.0612 %805,121$ 30,691$ 835,812$ 847,428$ 95.0 %87.0 % 6/30/2023 0.0506 873,796 129,787 1,003,583 663,845 131.6 86.5 6/30/2022 0.0319 1,388,162 358,279 1,746,441 374,492 370.7 70.5 6/30/2021 0.0220 169,817 59,909 229,726 272,672 62.3 93.7 6/30/2020 0.0200 263,621 59,909 323,530 225,881 116.7 87.2 6/30/2019 0.0205 218,243 - 218,243 214,818 101.6 89.3 6/30/2018 0.0193 205,718 - 205,718 204,083 100.8 88.8 6/30/2017 0.0190 256,523 - 256,523 195,685 131.1 85.4 6/30/2016 0.0190 762,503 - 762,503 186,534 408.8 63.9 6/30/2015 0.0200 227,247 - 227,247 91,503 248.3 86.6 Schedule of Employer’s PERA Contributions - Police and Fire Fund Contributions in Relation to the Contributions as Statutorily Statutorily Contribution City's a Percentage of Required Required Deficiency Covered Covered Year Contribution Contribution (Excess)Payroll Payroll Ending (a)(b)(a-b)(c)(b/c) 12/31/2024 161,628$ 161,628$ -$ 913,153$ 17.70 % 12/31/2023 135,550 135,550 - 765,817 17.70 12/31/2022 86,742 86,742 - 490,068 17.70 12/31/2021 55,996 55,996 - 316,362 17.70 12/31/2020 40,530 40,530 - 228,983 17.70 12/31/2019 37,761 37,761 - 222,779 16.95 12/31/2018 33,511 33,511 - 206,858 16.20 12/31/2017 32,612 32,612 - 201,309 16.20 12/31/2016 30,790 30,790 - 190,062 16.20 12/31/2015 29,647 29,647 - 183,006 16.20 Share of the City's Proportionate Net Pension Liability as a Plan Fiduciary City's Percentage of Net Position Proportion of Covered as a Percentage the Net Pension Payroll of the Total Liability (a/c)Pension Liability 105 484 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Notes to the Required Supplementary Information - Police and Fire Plan Changes in Actuarial Assumptions 2024 - There were no changes in actuarial assumptions since the previous valuation. 2023 - The investment return assumption was changed from 6.5 percent to 7.0 percent. The single discount rate changed from 5.4 percent to 7.0 percent. 2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate changed from 6.50 percent to 5.40 percent. 2021 - The investment return and single discount rates were changed from 7.5 percent to 6.5 percent, for financial reporting purposes. The inflation assumption was changed from 2.5 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.0 percent. 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 MN-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 result 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 result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members was changed from 60.0 percent to 70.0 percent. Minor changes to form of payment assumptions were applied. 2020 - The mortality projection scale was changed from MP-2018 to MP-2019. 2019 - The mortality projection scale was changed from MP-2017 to MP-2018. 2018 - The mortality projection scale was changed from MP-2016 to MP-2017. 2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent. 2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 5.6 percent. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.5 percent for inflation. 2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter. 106 485 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Notes to the Required Supplementary Information - Police and Fire Plan (Continued) Changes in Plan Provisions 2024 - The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded status for one year. The additional $9.0 million contribution will continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). 2023 - An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. The vesting requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50 percent vesting after five years increasing incrementally to 100 percent after 10 years. A one-time non-compounding benefit increase of 3.0 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023 prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. The total and permanent duty disability was increased, effective July 1, 2023. 2022 - There were no changes in plan provisions since the previous valuation. 2021 - There were no changes in plan provisions since the previous valuation. 2020 - There were no changes in plan provisions since the previous valuation. 2019 - There were no changes in plan provisions since the previous valuation. 2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9 million state contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the plan reaches 100 percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1, 2019 and 11.8 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.2 percent to 16.95 percent of pay, effective January 1, 2019 and 17.7 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 percent, 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- Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The combined service annuity (CSA) load was 30.0 percent for vested and non-vested, deferred members. The CSA has been changed to 33.0 percent for vested members and 2.0 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP- 2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65.0 percent to 60.0 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and survivor annuities was increased. The assumed postretirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent per annum to 7.5 percent per annum. 2016 - There were no changes in plan provisions since the previous valuation. 2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5 percent. 107 486 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief Report Report Report Report Report Report Report Report Report Report Date 2023)Date 2022)Date 2021)Date 2020)Date 2020)Date 2019)Date 2018)Date 2017)Date 2016)Date 2015) Total Pension Liability Service cost 127,784$ 127,784$ 154,968$ 150,695$ 150,695$ 143,922$ 143,922$ 88,924$ 88,924$ 86,369$ Interest 142,367 143,544 161,407 156,622 156,622 154,784 149,836 127,729 128,235 118,909 Changes of benefit terms - - - - - - - 212,120 - 279,202 Differences between expected and actual experience (520,791) - (126,365) 76,350 76,350 (79,049) - 5,145 - (5,328) Changes of assumptions - - 233 58,144 58,144 (902) (1,074) 231,636 (203) - Benefit payments, including refunds of employee contributions (43,133) (546,601) (494,030) (206,737) (206,737) (170,835) (216,595) (340,243) (113,883) (470,743) Net Change in Total Pension Liability (293,773) (275,273) (303,787) 235,074 235,074 47,920 76,089 325,311 103,073 8,409 Total Pension Liability - January 1 2,741,119 3,016,392 3,320,179 3,085,105 3,085,105 3,037,185 2,961,096 2,635,785 2,532,712 2,524,303 Total Pension Liability - December 31 (A)2,447,346$ 2,741,119$ 3,016,392$ 3,320,179$ 3,320,179$ 3,085,105$ 3,037,185$ 2,961,096$ 2,635,785$ 2,532,712$ Plan Fiduciary Net Position Contributions - employer -$ 42,580$ -$ 31,957$ 31,957$ 47,399$ 54,749$ -$ -$ 37,571$ Contributions - state 253,656 230,795 211,227 203,495 203,495 190,045 184,695 181,554 177,831 177,784 Net investment income 220,398 (323,036) 231,675 237,593 237,593 328,474 (130,928) 306,593 158,581 (105,958) Benefit payments, including refunds of employee contributions (43,133) (546,601) (494,030) (206,737) (206,737) (170,835) (216,595) (340,243) (113,883) (470,743) Administrative expense (25,320) (11,350) (19,800) (16,000) (16,000) (16,386) (17,350) (14,875) (16,972) (7,225) Other - - (20,943) - - - - 29,900 500 - Net Change in Plan Fiduciary Net Position 405,601 (607,612) (91,871) 250,308 250,308 378,697 (125,429) 162,929 206,057 (368,571) Plan Fiduciary Net Position - January 1 2,080,592 2,688,204 2,780,075 2,529,767 2,529,767 2,151,070 2,276,499 2,113,570 1,907,513 2,276,084 Plan Fiduciary Net Position - December 31 (B)2,486,193$ 2,080,592$ 2,688,204$ 2,780,075$ 2,780,075$ 2,529,767$ 2,151,070$ 2,276,499$ 2,113,570$ 1,907,513$ Fire Relief's Net Pension Liability (Asset) - December 31 (A-B)(38,847)$ 660,527$ 328,188$ 540,104$ 540,104$ 555,338$ 886,115$ 684,597$ 522,215$ 625,199$ Plan Fiduciary Net Position As a Percentage Of the Total Pension Liability (B/A)101.59%75.90%89.12%83.73%83.73%82.00%70.82%76.88%80.19%75.32% Covered-Employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Fire Relief's Net Pension Liability (Asset) as a Percentage of Covered-Employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Beginning in 2021, the City's net pension liability was measured using a one-year lookback option. 108 487 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Notes to the Required Supplementary Information – Fire Relief Association Changes in Actuarial Assumptions 2024 – No changes since prior report. 2023 - No changes since prior report. 2022 - The mortality table used to measure funding liability has been changed from SOA Public Safety-2010 Mortality with the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table Projected Generationally from 2010 with the MP-2020 Mortality Improvement Scale. 2020 - The mortality assumption was updated from the PubS-2010 Mortality Table Projected Generationally from 2010 with the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table Projected Generationally from 2010 with the MP-2020 Mortality Improvement Scale. 2019 - The mortality table used to measure funding liability has been changed from RP -2014 Sex Distinct Blue Collar Mortality with generational improvements beginning in 2006 (based on assumptions developed from the 2017 Social Security Trustees Report) to PubS-2010 Mortality with generational improvements projected beginning in 2010 based on SOA Scale MP-2019. 2018 - Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully generational improvements from 2006 based on assumptions from the Social Security Administration’s 2018 trustees report. The mortality improvement scale used to measure liability has been changed from an improvement scale based on assumptions developed from the 2017 Social Security Trustees Report to an improvement scaled based on assumptions developed from the 2018 Social Security trustees Report. The base table (RP-2014 Blue Collar) and year in which improvements began (2006) remained unchanged. This results in a decrease in liability and service cost. 2017 - The mortality improvement scale has been changed from an improvement scale based on assumptions developed from the 2016 Social Security Trustees Report to an improvement scale based on assumptions developed from the 2017 Social Security Trustees Report. Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1 1985 Disability Rates. The lump sum benefit accrual amount has been projected to increase by 9.27% every three years (3% compounded each year). 2016 - As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar Mortality with fully generational improvements from 2006 based on assumptions from the Social Security Administration’s 2016 trustees report. 109 488 City of Chanhassen, Minnesota Required Supplementary Information (Continued) For the Year Ended December 31, 2024 Schedule of Employer’s Fire Relief Association Contributions Actuarial Contribution Determined Employer State of MN Deficiency Year Contribution Contributions Contributions (Excess) Ending (a)(b)(c)(a-b-c) 12/31/24 190,629$ -$ 190,629$ - 12/31/23 190,629 42,580 190,629 (42,580) 12/31/22 233,452 - 211,227 22,225 12/31/21 233,452 31,957 203,495 (2,000) 12/31/20 233,452 31,957 203,495 (2,000) 12/31/19 236,444 47,399 190,045 (1,000) 12/31/18 236,444 54,749 184,695 (3,000) 12/31/17 171,760 - 181,554 (9,794) 12/31/16 171,760 - 177,831 (6,071) 12/31/15 142,501 37,571 177,784 (72,854) Beginning in 2021, the City's net pension liability was measured using a one-year lookback option. Schedule of Changes in the City’s Total OPEB Liability and Related Ratios Total OPEB Liability Service cost 21,713$ 14,008$ 18,755$ 15,307$ 13,504$ 13,547$ 14,388$ Interest 10,537 7,514 4,381 3,785 5,463 8,738 7,032 Differences between expected and actual experience (45,583) 68,691 (9,225) (6,405) (12,888) (82,370) - Changes in assumptions (3,197) 13,672 (17,614) 8,015 9,168 16,736 (7,402) Benefit payments (28,166) (16,946) (7,075) (8,835) (3,343) - (9,869) Net Change in Total OPEB Liability (44,696) 86,939 (10,778) 11,867 11,904 (43,349) 4,149 Total OPEB Liability - Beginning 255,651 168,712 179,490 167,623 155,719 199,068 194,919 Total OPEB Liability - Ending 210,955$ 255,651$ 168,712$ 179,490$ 167,623$ 155,719$ 199,068$ Covered-Employee Payroll 7,550,593$ 7,499,619$ 6,720,515$ 6,422,681$ 5,270,695$ 5,270,695$ 5,151,178$ City's total OPEB liability as a percentage of covered-employee payroll 2.8 %3.4 %2.5 %2.8 %3.2 %3.0 %3.9 % 2018201920242023202220212020 Note: Schedule is intended to show a 10-year trend. Additional years will be reported as they become available. No assets are accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. 110 489 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES CITY OF CHANHASSEN CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 111 490 THIS PAGE IS LEFT BLANK INTENTIONALLY 112 491 City of Chanhassen, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued on the Following Pages) For the Year Ended December 31, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Taxes General property 11,851,000$ 11,851,000$ 11,724,499$ (126,501)$ 10,689,452$ Franchise fees Cable franchise fee 145,000 145,000 140,269 (4,731) 143,187 Licenses and permits General government 2,500 2,500 2,200 (300) 2,250 Public safety 1,504,500 1,504,500 1,857,019 352,519 1,464,355 Public works 59,500 59,500 343,629 284,129 43,204 Community development 16,000 16,000 18,752 2,752 18,715 Total licenses and permits 1,582,500 1,582,500 2,221,600 639,100 1,528,524 Intergovernmental State Local performance aid - - 3,613 3,613 3,624 Fire aid 240,000 240,000 296,831 56,831 274,005 Police aid 160,000 160,000 190,588 30,588 165,460 Other state aid - - 2,433 2,433 - County Other county grants - - - - 7,500 Local Miscellaneous 66,000 66,000 79,633 13,633 70,997 Total intergovernmental 466,000 466,000 573,098 107,098 521,586 Charges for services General government 381,500 381,500 410,120 28,620 405,564 Public safety 3,000 3,000 5,150 2,150 4,650 Public works 99,000 99,000 107,666 8,666 23,220 Culture and recreation 529,850 529,850 553,011 23,161 567,159 Community development 22,000 22,000 19,867 (2,133) 25,528 Total charges for services 1,035,350 1,035,350 1,095,814 60,464 1,026,121 Fines and forfeitures 70,000 70,000 75,887 5,887 76,295 Investment earnings 200,000 200,000 397,474 197,474 467,266 Miscellaneous revenues Contributions and donations 21,500 21,500 35,474 13,974 24,032 Refunds and reimbursements 37,000 37,000 75,802 38,802 77,362 Other 5,000 5,000 8,265 3,265 23,561 Total miscellaneous 63,500 63,500 119,541 56,041 124,955 Total revenues 15,413,350 15,413,350 16,348,182 934,832 14,577,386 2024 Budgeted Amounts 113 492 City of Chanhassen, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Expenditures Current General government City council Personnel services 39,517$ 39,517$ 37,055$ 2,462$ 36,908$ Other services and charges 106,600 106,600 79,578 27,022 96,707 Total city council 146,117 146,117 116,633 29,484 133,615 Administration Personnel services 517,444 517,444 485,114 32,330 460,932 Supplies 58,000 58,000 61,408 (3,408) 58,246 Other services and charges 141,543 141,543 193,792 (52,249) 153,252 Total administration 716,987 716,987 740,314 (23,327) 672,430 Finance Personnel services 320,907 320,907 320,439 468 299,998 Supplies 100 100 1,677 (1,577) 240 Other services and charges 61,909 61,909 53,752 8,157 47,070 Total finance 382,916 382,916 375,868 7,048 347,308 Elections Personnel services 26,000 26,000 32,443 (6,443) - Supplies 4,000 4,000 1,391 2,609 - Other services and charges 18,000 18,000 17,755 245 12,089 Total elections 48,000 48,000 51,589 (3,589) 12,089 Contracted central services Other services and charges 402,000 402,000 403,665 (1,665) 386,210 Information technology Personnel services 292,843 292,843 293,715 (872) 261,182 Supplies 316,737 316,737 273,794 42,943 292,241 Other services and charges 141,530 141,530 59,200 82,330 142,269 Total information technology 751,110 751,110 626,709 124,401 695,692 City hall Personnel services 60,252 60,252 55,387 4,865 59,285 Supplies 13,500 13,500 1,423 12,077 5,101 Other services and charges 306,393 306,393 259,362 47,031 293,347 Total city hall 380,145 380,145 316,172 63,973 357,733 Library Supplies 2,250 2,250 1,177 1,073 73 Other services and charges 146,948 146,948 131,096 15,852 211,563 Total library 149,198 149,198 132,273 16,925 211,636 2024 Budgeted Amounts 114 493 City of Chanhassen, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts 2024 Budgeted Amounts Expenditures (Continued) Current (continued) General government (continued) Economic development Personnel services 178,162$ 178,162$ 176,628$ 1,534$ 165,739$ Supplies 250 250 - 250 - Other services and charges 11,970 11,970 8,326 3,644 5,755 Total economic development 190,382 190,382 184,954 5,428 171,494 Communication Personnel services 299,031 299,031 279,906 19,125 271,792 Supplies 55,200 55,200 47,717 7,483 41,745 Other services and charges 62,020 62,020 36,319 25,701 40,340 Total communication 416,251 416,251 363,942 52,309 353,877 Total general government 3,583,106 3,583,106 3,312,119 270,987 3,342,084 Public Safety Law enforcement Supplies 1,500 1,500 1,625 (125) 217 Other services and charges 2,438,901 2,438,901 2,301,664 137,237 2,060,478 Total law enforcement 2,440,401 2,440,401 2,303,289 137,112 2,060,695 Fire department Personnel services 1,813,071 1,813,071 1,811,670 1,401 1,613,717 Supplies 80,605 80,605 110,331 (29,726) 83,065 Other services and charges 167,440 167,440 145,751 21,689 139,469 Total fire department 2,061,116 2,061,116 2,067,752 (6,636) 1,836,251 Building permits & inspection Personnel services 874,095 874,095 849,942 24,153 869,316 Supplies 5,400 5,400 13,335 (7,935) 3,816 Other services and charges 59,040 59,040 68,969 (9,929) 50,186 Total building permits & inspection 938,535 938,535 932,246 6,289 923,318 Total public safety 5,440,052 5,440,052 5,303,287 136,765 4,820,264 Public works Engineering Personnel services 623,063 623,063 637,436 (14,373) 559,907 Supplies 13,300 13,300 12,297 1,003 22,862 Other services and charges 9,537 9,537 11,936 (2,399) 12,450 Total engineering 645,900 645,900 661,669 (15,769) 595,219 115 494 City of Chanhassen, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts 2024 Budgeted Amounts Expenditures (Continued) Current (continued) Public works (continued) G.I.S. Personnel services 80,854$ 80,854$ 79,784$ 1,070$ 69,935$ Supplies 2,500 2,500 3,640 (1,140) 2,500 Other services and charges (280) (280) (7,546) 7,266 16,894 Total G.I.S.83,074 83,074 75,878 7,196 89,329 Street maintenance Personnel services 642,780 642,780 548,926 93,854 538,650 Supplies 203,900 203,900 196,711 7,189 230,858 Other services and charges 329,520 329,520 333,583 (4,063) 38,273 Total street maintenance 1,176,200 1,176,200 1,079,220 96,980 807,781 Street lighting Supplies 5,000 5,000 23,273 (18,273) 4,263 Other services and charges 532,515 532,515 399,803 132,712 428,467 Total street lighting 537,515 537,515 423,076 114,439 432,730 Fleet maintenance Personnel services 290,688 290,688 286,028 4,660 280,561 Supplies 186,248 186,248 117,112 69,136 155,256 Other services and charges 16,860 16,860 3,762 13,098 5,980 Total fleet maintenance 493,796 493,796 406,902 86,894 441,797 Public works operations Personnel services 109,628 109,628 106,005 3,623 102,602 Supplies 2,000 2,000 1,143 857 755 Other services and charges 54,483 54,483 53,329 1,154 50,825 Total public works operations 166,111 166,111 160,477 5,634 154,182 Total public works 3,102,596 3,102,596 2,807,222 295,374 2,521,038 Culture and recreation Park administration Personnel services 185,195 185,195 188,094 (2,899) 175,979 Supplies 300 300 - 300 139 Other services and charges 16,876 16,876 6,846 10,030 6,325 Total park administration 202,371 202,371 194,940 7,431 182,443 Recreation center Personnel services 296,519 296,519 339,864 (43,345) 312,751 Supplies 18,300 18,300 12,213 6,087 17,504 Other services and charges 147,350 147,350 143,864 3,486 147,484 Total recreation center 462,169 462,169 495,941 (33,772) 477,739 Senior center Personnel services 106,474 106,474 107,879 (1,405) 99,842 Supplies 5,975 5,975 10,548 (4,573) 6,988 Other services and charges 38,720 38,720 39,687 (967) 41,996 Total senior center 151,169 151,169 158,114 (6,945) 148,826 116 495 City of Chanhassen, Minnesota General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (Continued) For the Year Ended December 31, 2024 (With Comparative Actual Amounts for the Year Ended December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts 2024 Budgeted Amounts Expenditures (Continued) Current (continued) Culture and recreation (continued) Recreation programs Personnel services 348,531$ 348,531$ 291,204$ 57,327$ 296,922$ Supplies 33,120 33,120 31,797 1,323 30,840 Other services and charges 173,010 173,010 159,322 13,688 160,184 Total recreation programs 554,661 554,661 482,323 72,338 487,946 Lake Ann Park Personnel services 14,084 14,084 12,829 1,255 12,510 Supplies 20,700 20,700 21,510 (810) 22,728 Other services and charges 58,100 58,100 21,037 37,063 59,886 Total Lake Ann Park 92,884 92,884 55,376 37,508 95,124 Park maintenance Personnel services 1,061,449 1,061,449 1,068,069 (6,620) 979,416 Supplies 111,000 111,000 120,260 (9,260) 129,545 Other services and charges 284,850 284,850 251,817 33,033 251,452 Total park maintenance 1,457,299 1,457,299 1,440,146 17,153 1,360,413 Total culture and recreation 2,920,553 2,920,553 2,826,840 93,713 2,752,491 Community development Planning administration Personnel services 581,568 581,568 471,433 110,135 581,271 Supplies 400 400 551 (151) 192 Other services and charges 25,075 25,075 112,957 (87,882) 70,178 Total planning administration 607,043 607,043 584,941 22,102 651,641 Total community development 607,043 607,043 584,941 22,102 651,641 Total current 15,653,350 15,653,350 14,834,409 818,941 14,087,518 Total expenditures 15,653,350 15,653,350 14,834,409 818,941 14,087,518 Excess (deficiency) of revenues Over (under) expenditures (240,000) (240,000) 1,513,773 1,753,773 489,868 Other financing sources (uses) Transfers in 330,000 330,000 1,737,106 1,407,106 180,000 Transfers out - - - - (170,000) Total other financing sources (uses)330,000 330,000 1,737,106 1,407,106 10,000 Net Change in Fund Balances 90,000 90,000 3,250,879 3,160,879 499,868 Fund Balances, January 1 8,872,099 8,872,099 8,872,099 - 8,372,231 Fund Balances, December 31 8,962,099$ 8,962,099$ 12,122,978$ 3,160,879$ 8,872,099$ 117 496 THIS PAGE IS LEFT BLANK INTENTIONALLY 118 497 SPECIAL REVENUE FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed 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 FUNDS The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 119 498 City of Chanhassen, Minnesota Nonmajor Governmental Funds Combining Balance Sheet December 31, 2024 Special Debt Capital Revenue Service Projects Total Assets Cash and investments 1,450,373$ 2,928,971$ 4,218,755$ 8,598,099$ Receivables Accounts 33,277 - 63,140 96,417 Accrued interest 19,997 12,053 16,782 48,832 Taxes - 3,108 5,800 8,908 Special assessments - 316,443 1,182,271 1,498,714 Due from other governments - -114,410 114,410 Total Assets 1,503,647$ 3,260,575$ 5,601,158$ 10,365,380$ Liabilities Accounts payable 90,156$ 500,250$ 461,841$ 1,052,247$ Contracts payable - - 165,347 165,347 Due to other governments - - 10,679 10,679 Due to other funds - - 21,000 21,000 Total Liabilities 90,156 500,250 658,867 1,249,273 Deferred Inflows of Resources Unavailable revenue - special assessments - 316,443 1,182,271 1,498,714 Fund Balances Restricted for Communications 43,886 - - 43,886 Public safety 950,174 - - 950,174 Debt service - 1,317,101 - 1,317,101 Capital projects - - 672,134 672,134 Tax increments - - 54,927 54,927 Local affordable housing aid 126,855 - - 126,855 Committed 144,359 - - 144,359 Assigned 148,217 1,126,781 3,053,453 4,328,451 Unassigned - - (20,494) (20,494) Total Fund Balances 1,413,491 2,443,882 3,760,020 7,617,393 Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,503,647$ 3,260,575$ 5,601,158$ 10,365,380$ 120 499 City of Chanhassen, Minnesota Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 Special Debt Capital Revenue Service Projects Total Revenues Taxes -$ 566,000$ 1,056,000$ 1,622,000$ Tax increments - - 444,581 444,581 Licenses and permits - - 28,333 28,333 Intergovernmental 2,472,081 - 8,976 2,481,057 Franchise fees 49 49 Charges for services 6,100 - - 6,100 Investment earnings 164,393 91,402 118,060 373,855 Miscellaneous Contributions and donations 67,840 - - 67,840 Refunds and reimbursements 25,000 - 1,963 26,963 Other - - 3,228 3,228 Total Revenues 2,735,463 657,402 1,661,141 5,054,006 Expenditures Current General government 215,501 705 - 216,206 Community development - - 425,844 425,844 Capital outlay General government - - 265,165 265,165 Public safety 72,147 - 111,725 183,872 Public works - - 372,368 372,368 Culture and recreation - - 1,426,215 1,426,215 Community development - - - - Debt service Principal - 395,000 290,933 685,933 Interest and other charges - 58,743 82,002 140,745 Total Expenditures 287,648 454,448 2,974,252 3,716,348 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,447,815 202,954 (1,313,111) 1,337,658 Other Financing Sources (Uses) Sale of capital assets - - 266,687 266,687 Transfers in - - 938,120 938,120 Issuance of leases - - 255,365 255,365 Issuance of bonds - 477,000 - 477,000 Transfers out (2,675,226) - - (2,675,226) Total Other Financing Sources (Uses)(2,675,226) 477,000 1,460,172 (738,054) Net Change in Fund Balances (227,411) 679,954 147,061 599,604 Fund Balances, January 1, as previously reported 447,763 1,763,928 2,637,696 4,849,387 Change to the financial reporting entity Change from major to nonmajor fund (Fund 212)1,193,139 - - 1,193,139 Change from nonmajor to major fund (Fund 414)- - 975,263 975,263 Fund Balances, January 1, as adjusted 1,640,902 1,763,928 3,612,959 7,017,789 Fund Balances, December 31 1,413,491$ 2,443,882$ 3,760,020$ 7,617,393$ 121 500 THIS PAGE IS LEFT BLANK INTENTIONALLY 122 501 NONMAJOR SPECIAL REVENUE FUNDS Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects. Charitable Gambling Fund - This fund accounts for the proceeds that the City receives from charitable gambling. The City collects 10% of the net profits from lawful gambling within City boundaries. Per state statute, the fund is used for equipment and training for the City’s fire department. Cemetery Fund - The City owns and operates a municipal cemetery. This fund accounts for all plot fees and maintenance of the cemetery. Cable TV Fund - The City has had a franchise agreement with Mediacom for several years. Cable franchise fees were accounted for in this fund until 2023, when they were moved to the General Fund. PEG fees collected are still accounted for in this fund. The PEG fees balance in this fund are restricted solely to improving public broadcasting capabilities, studio improvements, and other capital expenditures improving the overall cable system. The assigned fund balance in this fund is used for other communications operating and capital expenditures. Grant Fund - This fund accounts for the revenues and expenditures related to federal and state financial assistance programs. Local Affordable Housing Aid Fund - This fund accounts for the revenues and expenditures related to the Local Affordable Housing Aid program. 123 502 201 202 210 212 213 Charitable Local Affordable Gambling Cemetery Cable TV Grant Fund Housing Aid Total Assets Cash and investments 52,384$ 72,318$ 175,773$ 1,023,043$ 126,855$ 1,450,373$ Receivables Accounts 7,784 - 25,493 - - 33,277 Accrued interest 277 361 1,046 18,313 - 19,997 Total Assets 60,445$ 72,679$ 202,312$ 1,041,356$ 126,855$ 1,503,647$ Liabilities Accounts payable 3,410$ -$ 86,746$ -$ -$ 90,156$ Fund Balances Restricted for Communications - - 43,886 - - 43,886 Public safety 57,035 - - 893,139 - 950,174 Local affordable housing - - - - 126,855 126,855 Committed - 72,679 71,680 - - 144,359 Assigned - -- 148,217 - 148,217 Total Fund Balances 57,035 72,679 115,566 1,041,356 126,855 1,413,491 Total Liabilities and Fund Balances 60,445$ 72,679$ 202,312$ 1,041,356$ 126,855$ 1,503,647$ City of Chanhassen, Minnesota Nonmajor Special Revenue Funds Combining Balance Sheet December 31, 2024 124 503 201 202 210 212*213 Charitable Local Affordable Gambling Cemetery Cable TV Grant Fund Housing Aid Total Revenues Intergovernmental -$ -$ -$ 2,345,226$ 126,855$ 2,472,081$ Franchise fees - - 49 - - 49 Charges for services - 6,100 - - - 6,100 Investment earnings 2,063 2,781 11,332 148,217 - 164,393 Miscellaneous revenues Contributions 67,840 - - - - 67,840 Refunds and reimbursements - - 25,000 - - 25,000 Total Revenues 69,903 8,881 36,381 2,493,443 126,855 2,735,463 Expenditures Current General government - 800 214,701 - - 215,501 Capital outlay Public safety 72,147 - - - - 72,147 Total Expenditures 72,147 800 214,701 - - 287,648 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,244) 8,081 (178,320) 2,493,443 126,855 2,447,815 Other Financing Sources (Uses) Transfers out - - (30,000) (2,645,226) - (2,675,226) Net Change in Fund Balances (2,244) 8,081 (208,320) (151,783) 126,855 (227,411) Fund Balances, January 1, as previously reported 59,279 64,598 323,886 - - 447,763 Change to the finanicial reporting entity Change from major to nonmajor fund - - - 1,193,139 - 1,193,139 Fund Balances, January 1, as adjusted 59,279 64,598 323,886 1,193,139 - 1,640,902 Fund Balances, December 31 57,035$ 72,679$ 115,566$ 1,041,356$ 126,855$ 1,413,491$ * Grant Fund 212 was formerly major City of Chanhassen, Minnesota Nonmajor Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 125 504 City of Chanhassen, Minnesota Charitable Gambling Fund Budgeted Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Investment earnings 500$ 500$ 2,063$ 1,563$ 1,979$ Miscellaneous revenues 50,000 50,000 67,840 17,840 63,203 Total Revenues 50,500 50,500 69,903 19,403 65,182 Expenditures Capital outlay Public safety 50,000 50,000 72,147 (22,147) 32,085 Net Change in Fund Balances 500 500 (2,244) (2,744) 33,097 Fund Balances, January 1 59,279 59,279 59,279 - 26,182 Fund Balances, December 31 59,779$ 59,779$ 57,035$ (2,744)$ 59,279$ 2024 Budgeted Amounts 126 505 City of Chanhassen, Minnesota Cemetery Fund Budgeted Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Charges for services 4,500$ 4,500$ 6,100$ 1,600$ 1,900$ Investment earnings 1,300 1,300 2,781 1,481 2,944 Miscellaneous revenues - - - - 625 Total Revenues 5,800 5,800 8,881 3,081 5,469 Expenditures Current General government 3,000 3,000 800 2,200 954 Net Change in Fund Balances 2,800 2,800 8,081 5,281 4,515 Fund Balances, January 1 64,598 64,598 64,598 - 60,083 Fund Balances, December 31 67,398$ 67,398$ 72,679$ 5,281$ 64,598$ 2024 Budgeted Amounts 127 506 City of Chanhassen, Minnesota Cable Television Fund Budgeted Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Franchise taxes -$ -$ 49$ 49$ -$ Investment earnings 6,100 6,100 11,332 5,232 16,843 Miscellaneous revenues - - 25,000 25,000 - Total Revenues 6,100 6,100 36,381 30,281 16,843 Expenditures Current General government 40,000 40,000 214,701 (174,701) 41,535 Deficiency of Revenues Under Expenditures (33,900) (33,900) (178,320) (144,420) (24,692) Other Financing Sources (Uses) Transfers out (170,000) (170,000) (30,000) 140,000 (45,000) Net Change in Fund Balances (203,900) (203,900) (208,320) (4,420) (69,692) Fund Balances, January 1 323,886 323,886 323,886 - 393,578 Fund Balances, December 31 119,986$ 119,986$ 115,566$ (4,420)$ 323,886$ 2024 Budgeted Amounts 128 507 City of Chanhassen, Minnesota Grant Fund Budgeted Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Intergovernmental 1,288,849$ 1,288,849$ 2,345,226$ 1,056,377$ 1,513,590$ Investment earnings 54,100 54,100 148,217 94,117 127,624 Total Revenues 1,342,949 1,342,949 2,493,443 1,150,494 1,641,214 Deficiency of Revenues Under Expenditures 1,342,949 1,342,949 2,493,443 1,150,494 1,641,214 Other Financing Sources (Uses) Transfers out (1,705,000) (1,705,000) (2,645,226) (940,226) (378,623) Net Change in Fund Balances (362,051) (362,051) (151,783) 210,268 1,262,591 Fund Balances, January 1 1,193,139 1,193,139 1,193,139 - (69,452) Fund Balances, December 31 831,088$ 831,088$ 1,041,356$ 210,268$ 1,193,139$ 2024 Budgeted Amounts 129 508 THIS PAGE IS LEFT BLANK INTENTIONALLY 130 509 NONMAJOR DEBT SERVICE FUNDS Debt Service Funds are maintained on the modified accrual basis of accounting for revenues from taxes and other sources set aside for the payment of the debt obligations of the City. Principal and interest on the general long-term debt is recognized when due. Permanent Revolving Debt - This fund is used to account for excess resources from matured bond issues. General Obligation Bond Funds - These funds are used to account for the accumulation of resources for payment of general obligation bonds or other general indebtedness and the interest thereon. 131 510 300 368 370 371 2009A G.O.2016A G.O.2024A G.O. Permanent Refunding Refunding Capital Revolving Debt Bonds Bonds Improvement Bonds Total Assets Cash and investments 744,721$ 874,228$ 824,708$ 485,314$ 2,928,971$ Receivables Accrued interest 3,718 4,364 3,971 - 12,053 Taxes - - 3,108 - 3,108 Special assessments 5,321 311,122 - - 316,443 Total Assets 753,760$ 1,189,714$ 831,787$ 485,314$ 3,260,575$ Liabilities Accounts payable -$ 500,250$ -$ -$ 500,250$ Deferred Inflows of Resources Unavailable revenue - special assessments 5,321 311,122 - - 316,443 Fund Balances Restricted for debt service - - 831,787 485,314 1,317,101 Assigned 748,439 378,342 - - 1,126,781 Total Fund Balances 748,439 378,342 831,787 485,314 2,443,882 Total Liabilities, Deferred Inflows of Resources and Fund Balances 753,760$ 1,189,714$ 831,787$ 485,314$ 3,260,575$ City of Chanhassen, Minnesota Debt Service Funds Combining Balance Sheet December 31, 2024 132 511 300 368 370 371 2009A G.O.2016A G.O.2024A G.O. Permanent Refunding Refunding Capital Revolving Debt Bonds Bonds Improvement Bonds Total Revenues Property taxes -$ -$ 566,000$ -$ 566,000$ Investment earnings 29,203 34,281 19,307 8,611 91,402 Total Revenues 29,203 34,281 585,307 8,611 657,402 Expenditures Current General government - - 408 297 705 Debt service Principal - - 395,000 - 395,000 Interest and other - - 58,743 - 58,743 Total Expenditures - - 454,151 297 454,448 Excess (Deficiency) of Revenues Over (Under) Expenditures 29,203 34,281 131,156 8,314 202,954 Other Financing Sources (Uses) Issuance of bonds - - - 477,000 477,000 Net Change in Fund Balances 29,203 34,281 131,156 485,314 679,954 Fund Balances, January 1 719,236 344,061 700,631 - 1,763,928 Fund Balances, December 31 748,439$ 378,342$ 831,787$ 485,314$ 2,443,882$ City of Chanhassen, Minnesota Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 133 512 City of Chanhassen, Minnesota 2016A G.O. Refunding Bonds Fund Budgeted Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Tax Increment 566,000$ 566,000$ 566,000$ -$ 482,000$ Investment earnings 10,300 10,300 19,307 9,007 24,176 Total Revenues 576,300 576,300 585,307 9,007 506,176 Expenditures Current General government - - 408 (408) 350 Debt service Principal 395,000 395,000 395,000 - 385,000 Interest and other charges 58,725 58,725 58,743 (18) 70,424 Total Expenditures 453,725 453,725 454,151 (426) 455,774 Net Change in Fund Balances 122,575 122,575 131,156 8,581 50,402 Fund Balances, January 1 700,631 700,631 700,631 - 650,229 Fund Balances, December 31 823,206$ 823,206$ 831,787$ 8,581$ 700,631$ 2024 Budgeted Amounts 134 513 NONMAJOR CAPITAL PROJECTS FUNDS Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by enterprise funds. 400 Capital Equipment/Vehicle Fund - Accounts for the City’s annual equipment purchases not related to the City’s enterprise funds. The fund currently does include a property tax levy to support the annual purchases. 401 Park Renovation Fund - Accounts for replacement or repair of major park equipment/infrastructure, including playgrounds, picnic shelters, hockey rinks, bridges, fences, walls, etc. The maintenance and replacement schedule is an ongoing endeavor that will be updated as new investments are made or aging structures are removed. 402 Capital Facilities Fund - Accounts for the City’s expenditures related to the City’s facilities, except for those related to the enterprise funds. The fund currently does include a property tax levy to support projects. 410 Park Development Fund - Accounts for park dedication fees as required by the City ordinance and Minnesota State Statute. These funds are then utilized to finance park and trail improvements identified in the park and recreation section of the City’s comprehensive plan. 420 Transportation Infrastructure Management - Accounts for trail construction and certain maintenance costs of local streets such as sealcoating, patching, and inspections. 480 TIF #11 - Accounts for tax increment financing for the downtown district, TIF #11 - Frontier Development #2. 481 TIF #12 - Accounts for tax increment financing for TIF #12 - Lake Place Senior Apt. 605 TH101 Improvements - Accounts for the City’s expenditures related to TH101 Improvements. 135 514 400 401 402 410 420 Capital Transportation Equipment/Park Capital Park Infrastructure Vehicle Renovation Facilities Development Management Assets Cash and investments 1,753,438$ 118,877$ 256,020$ 790,974$ 896,196$ Receivables Accounts 63,140 - - - - Accrued interest 8,580 593 1,235 - 4,399 Taxes 3,614 - 912 - 1,274 Special assessments - - - 1,182,271 - Due from other governments - - - - - Total Assets 1,828,772$ 119,470$ 258,167$ 1,973,245$ 901,869$ Liabilities Accounts payable 2,442$ -$ 26,603$ 108,161$ 112,007$ Contracts payable - - - - - Due to other governments - - - 10,679 - Due to other funds - - - - - Total Liabilities 2,442 - 26,603 118,840 112,007 Deferred Inflows of Resources Unavailable revenue - special assessments - - - 1,182,271 - Fund Balances Restricted for Park improvements - - - 672,134 - Tax increments - - - - - Assigned for Capital projects 1,826,330 119,470 231,564 - 789,862 Unassigned - - - - - Total Fund Balances 1,826,330 119,470 231,564 672,134 789,862 Total Liabilities and Fund Balances 1,828,772$ 119,470$ 258,167$ 1,973,245$ 901,869$ City of Chanhassen, Minnesota Nonmajor Capital Projects Funds Combining Balance Sheet December 31, 2024 136 515 480 481 605 Frontier Lake Place Development Senior Apt TH101 TIF #11 TIF #12 Improvements Total 190,512$ 69,260$ 143,478$ 4,218,755$ - - - 63,140 905 360 710 16,782 - - - 5,800 - - - 1,182,271 - - 114,410 114,410 191,417$ 69,620$ 258,598$ 5,601,158$ 136,490$ 69,114$ 7,024$ 461,841$ - - 165,347 165,347 - - - 10,679 - 21,000 - 21,000 136,490 90,114 172,371 658,867 - - - 1,182,271 - - - 672,134 54,927 - - 54,927 - - 86,227 3,053,453 - (20,494) (20,494) 54,927 (20,494) 86,227 3,760,020 191,417$ 69,620$ 258,598$ 5,601,158$ 137 516 400 401 402 410 414*420 Capital Transportation Equipment/Park Capital Park Civic Infrastructure Vehicle Renovation Facilities Development Campus Management Revenues Taxes General property 658,000$ -$ 166,000$ -$ -$ 232,000$ Tax increment - - - - - - Intergovernmental Other - - - - - - Licenses and permits - - - 28,333 - - Investment earnings 55,632 4,728 7,190 6,873 - 34,710 Miscellaneous - Refunds and reimbursements - - - 1,963 - - Other 2,000 - 1,228 - - - Total Revenues 715,632 4,728 174,418 37,169 - 266,710 Expenditures Current Community development - - - - - - Capital outlay General government 265,165 - - - - - Public safety 85,847 - 25,878 - - - Public works 11,896 - 44,808 - - 306,688 Culture and recreation 235,959 55,028 79,602 1,055,626 - - Community development - - - - - - Debt service Principal 194,623 - - 96,310 - - Interest and other charges 82,002 - - - - - Total Expenditures 875,492 55,028 150,288 1,151,936 - 306,688 Excess (Deficiency) of Revenues Over (Under) Expenditures (159,860) (50,300) 24,130 (1,114,767) - (39,978) Other Financing Sources (Uses) Sale of capital assets 266,687 - - - - - Transfers in - - - 938,120 - - Issuance of leases 255,365 - - - - - Total Other Financing Sources (Uses)522,052 - - 938,120 - - Net Changes in Fund Balances 362,192 (50,300) 24,130 (176,647) - (39,978) Fund Balances, January 1, as previously reported 1,464,138 169,770 207,434 848,781 (975,263) 829,840 Change to the financial reporting entity Change from nonmajor to major fund - - - - 975,263 - Fund Balances, January 1, as adjusted 1,464,138 169,770 207,434 848,781 - 829,840 Fund Balances, December 31 1,826,330$ 119,470$ 231,564$ 672,134$ -$ 789,862$ * Civic Campus Fund 414 was formerly nonmajor City of Chanhassen, Minnesota Nonmajor Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2024 138 517 480 481 605 Frontier Lake Place Development Senior Apt TH101 TIF #11 TIF #12 Improvements Total -$ -$ -$ 1,056,000$ 290,995 153,586 - 444,581 - - 8,976 8,976 - - - 28,333 2,742 674 5,511 118,060 - - - 1,963 - - - 3,228 293,737 154,260 14,487 1,661,141 278,002 147,842 - 425,844 - - - 265,165 - - - 111,725 - - 8,976 372,368 - - - 1,426,215 - - - - - - - 290,933 - - - 82,002 278,002 147,842 8,976 2,974,252 15,735 6,418 5,511 (1,313,111) - - - 266,687 - - - 938,120 - - - 255,365 - - - 1,460,172 15,735 6,418 5,511 147,061 39,192 (26,912) 80,716 2,637,696 - - - 975,263 39,192 (26,912) 80,716 3,612,959 54,927$ (20,494)$ 86,227$ 3,760,020$ 139 518 City of Chanhassen, Minnesota Capital Equipment/Vehicle Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Taxes 658,000$ 658,000$ 658,000$ -$ 615,000$ Investment earnings 16,200 16,200 55,632 39,432 66,789 Miscellaneous revenues - - 2,000 2,000 20,158 Total Revenues 674,200 674,200 715,632 41,432 701,947 Expenditures Capital outlay General government 12,000 12,000 265,165 (253,165) 520,924 Public safety - - 85,847 (85,847) 124,159 Public works - - 11,896 (11,896) 171,468 Culture and recreation 638,500 638,500 235,959 402,541 419,193 Debt service Principal 369,018 369,018 194,623 174,395 113,898 Interest and other charges - - 82,002 (82,002) 55,103 Total Expenditures 1,019,518 1,019,518 875,492 144,026 1,404,745 Deficiency of Revenues Under Expenditures (345,318) (345,318) (159,860) 185,458 (702,798) Other Financing Sources (Uses) Transfers in 105,000 105,000 - (105,000) - Sale of capital assets 519,730 519,730 266,687 (253,043) 293,907 Issuance of leases - - 255,365 255,365 506,576 Transfers out - - - - (200,000) Total Other Financing Sources (Uses)624,730 624,730 522,052 (102,678) 600,483 Net Change in Fund Balances 279,412 279,412 362,192 82,780 (102,315) Fund Balances, January 1 1,464,138 1,464,138 1,464,138 - 1,566,453 Fund Balances, December 31 1,743,550$ 1,743,550$ 1,826,330$ 82,780$ 1,464,138$ 2024 Budgeted Amounts 140 519 City of Chanhassen, Minnesota Capital Facilities Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Taxes 166,000$ 166,000$ 166,000$ -$ 155,000$ Investment earnings 2,100 2,100 7,190 5,090 8,219 Miscellaneous revenues - - 1,228 1,228 - Total Revenues 168,100 168,100 174,418 6,318 163,219 Expenditures Capital outlay Public safety 12,000 12,000 25,878 (13,878) 229,508 Public works 142,000 142,000 44,808 97,192 - Culture and recreation 25,000 25,000 79,602 (54,602) 24,908 Total Expenditures 179,000 179,000 150,288 28,712 254,416 Deficiency of Revenues Under Expenditures (10,900) (10,900) 24,130 35,030 (91,197) Other Financing Sources (Uses) Transfers in - - - - 200,000 Net Change in Fund Balances (10,900) (10,900) 24,130 35,030 108,803 Fund Balances, January 1 207,434 207,434 207,434 - 98,631 Fund Balances, December 31 196,534$ 196,534$ 231,564$ 35,030$ 207,434$ 2024 Budgeted Amounts 141 520 City of Chanhassen, Minnesota Park Development Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Intergovernmental 250,000$ 250,000$ -$ (250,000)$ -$ Licenses and permits 200,000 200,000 28,333 (171,667) 424,099 Investment earnings 15,800 15,800 6,873 (8,927) 23,704 Miscellaneous revenues - - 1,963 1,963 74,720 Total Revenues 465,800 465,800 37,169 (428,631) 522,523 Expenditures Capital outlay Culture and recreation 2,971,310 2,971,310 1,055,626 1,915,684 243,623 Debt service Principal - - 96,310 (96,310) 96,310 Total Expenditures 2,971,310 2,971,310 1,151,936 1,819,374 339,933 Deficiency of Revenues Under Expenditures (2,505,510) (2,505,510) (1,114,767) 1,390,743 182,590 Other Financing Sources (Uses) Transfers in 1,575,000 1,575,000 938,120 (636,880) 243,623 Net Change in Fund Balances (930,510) (930,510) (176,647) 753,863 426,213 Fund Balances, January 1 848,781 848,781 848,781 - 422,568 Fund Balances, December 31 (81,729)$ (81,729)$ 672,134$ 753,863$ 848,781$ 2024 Budgeted Amounts 142 521 City of Chanhassen, Minnesota Transportation Infrastructure Management Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Taxes 232,000$ 232,000$ 232,000$ -$ 544,000$ Investment earnings 10,600 10,600 34,710 24,110 42,348 Miscellaneous revenues - - - - - Total Revenues 242,600 242,600 266,710 24,110 586,348 Expenditures Capital outlay Public works 281,000 281,000 306,688 (25,688) 536,060 Net Change in Fund Balances (38,400) (38,400) (39,978) (1,578) 50,288 Fund Balances, January 1 829,840 829,840 829,840 - 779,552 Fund Balances, December 31 791,440$ 791,440$ 789,862$ (1,578)$ 829,840$ 2024 Budgeted Amounts 143 522 City of Chanhassen, Minnesota Frontier Development TIF #11 Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Tax Increment 279,284$ 279,284$ 290,995$ 11,711$ 255,261$ Investment earnings 574 574 2,742 2,168 3,767 Total Revenues 279,858 279,858 293,737 13,879 259,028 Expenditures Capital outlay Community development 265,964 265,964 278,002 (12,038) 244,416 Net Change in Fund Balances 13,894 13,894 15,735 1,841 14,612 Fund Balances, January 1 39,192 39,192 39,192 - 24,580 Fund Balances, December 31 53,086$ 53,086$ 54,927$ 1,841$ 39,192$ 2024 Budgeted Amounts 144 523 City of Chanhassen, Minnesota Lake Place Senior Apt TIF #12 Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Tax Increment 130,000$ 130,000$ 153,586$ 23,586$ 26,806$ Investment earnings - - 674 674 190 Total Revenues 130,000 130,000 154,260 24,260 26,996 Expenditures Capital outlay Community development 118,000 118,000 147,842 (29,842) 29,205 Deficiency of Revenues Under Expenditures 12,000 12,000 6,418 (5,582) (2,209) Other Financing Sources (Uses) Transfers out (1,125) (1,125) - 1,125 - Net Change in Fund Balances 10,875 10,875 6,418 (4,457) (2,209) Fund Balances, January 1 (26,912) (26,912) (26,912) - (24,703) Fund Balances, December 31 (16,037)$ (16,037)$ (20,494)$ (4,457)$ (26,912)$ 2024 Budgeted Amounts 145 524 City of Chanhassen, Minnesota PMP Pavement Management Capital Fund Budgeted Capital Project Fund Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual For the Year Ended December 31, 2024 (With Comparative Totals for December 31, 2023) 2023 Actual Variance with Actual Original Final Amounts Final Budget Amounts Revenues Tax Increment 982,000$ 982,000$ 982,000$ -$ 918,000$ Intergovernmental 15,636,780 15,636,780 5,367,221 (10,269,559) 578,749 Franchise taxes 1,912,000 1,912,000 1,899,990 (12,010) 1,902,580 Special assessments 384,067 384,067 1,397,913 1,013,846 1,310,047 Investment earnings 69,650 69,650 340,916 271,266 187,861 Total Revenues 18,984,497 18,984,497 9,988,040 (8,996,457) 4,897,237 Expenditures Capital outlay Public works 26,870,000 26,870,000 12,384,055 14,485,945 5,759,339 Debt service Principal - - 145,000 (145,000) 145,000 Total Expenditures 26,870,000 26,870,000 12,529,055 14,340,945 5,904,339 Deficiency of Revenues Under Expenditures (7,885,503) (7,885,503) (2,541,015) 5,344,488 (1,007,102) Other Financing Sources Issuance of bonds 3,895,000 3,895,000 - (3,895,000) - Net Change in Fund Balances (3,990,503) (3,990,503) (2,541,015) 1,449,488 (1,007,102) Fund Balances, January 1 3,312,577 3,312,577 3,312,577 - 4,319,679 Fund Balances, December 31 (677,926)$ (677,926)$ 771,562$ 1,449,488$ 3,312,577$ 2024 Budgeted Amounts 146 525 STATISTICAL SECTION (UNAUDITED) CHANHASSEN, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 147 526 THIS PAGE IS LEFT BLANK INTENTIONALLY 148 527 STATISTICAL SECTION (UNAUDITED) This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. 149 528 City of Chanhassen, Minnesota Statistical Section (Unaudited) Net Position by Component Last Ten Fiscal Years 2015 2016 2017 2018 Governmental Activities Net investment in capital assets 71,225,523$ 72,588,940$ 70,255,784$ 71,053,355$ Restricted 5,982,262 3,459,840 3,270,087 2,548,980 Unrestricted 9,510,105 10,221,704 10,028,355 8,781,660 Total Governmental Activities Net Position 86,717,890$ 86,270,484$ 83,554,226$ 82,383,995$ Business-type Activities Net investment in capital assets 55,704,478$ 57,478,975$ 57,212,106$ 56,195,385$ Unrestricted 10,032,731 10,516,316 10,126,315 12,342,280 Total Business-type Activities Net Position 65,737,209$ 67,995,291$ 67,338,421$ 68,537,665$ Total Primary Government Net investment in capital assets 126,930,001$ 130,067,915$ 127,467,890$ 127,248,740$ Restricted 5,982,262 3,459,840 3,270,087 2,548,980 Unrestricted 19,542,836 20,738,020 20,154,670 21,123,940 Total Primary Government 152,455,099$ 154,265,775$ 150,892,647$ 150,921,660$ Fiscal Year 150 529 Table 1 2019 2020 2021 2022 2023 2024 72,986,179$ 73,063,927$ 70,860,083$ 68,702,496$ 67,404,190$ 69,207,758$ 2,883,391 1,629,219 1,020,560 1,135,813 2,858,088 2,784,210 8,360,013 9,369,203 12,019,412 13,915,001 14,718,920 21,303,887 84,229,583$ 84,062,349$ 83,900,055$ 83,753,310$ 84,981,198$ 93,295,855$ 54,469,960$ 55,526,666$ 56,069,887$ 56,585,833$ 56,649,651$ 59,721,155$ 13,557,181 11,740,521 16,353,752 11,289,333 10,958,947 8,813,848 68,027,141$ 67,267,187$ 72,423,639$ 67,875,166$ 67,608,598$ 68,535,003$ 127,456,139$ 128,590,593$ 126,929,970$ 125,288,329$ 124,053,841$ 128,928,913$ 2,883,391 1,629,219 1,020,560 1,135,813 2,858,088 2,784,210 21,917,194 21,109,724 28,373,164 25,204,334 25,677,867 30,117,735 152,256,724$ 151,329,536$ 156,323,694$ 151,628,476$ 152,589,796$ 161,830,858$ Fiscal Year 151 530 City of Chanhassen, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued on the Following Pages) Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2016 2017 2018 Expenses Governmental Activities General government 2,775,663$ 2,887,111$ 3,230,517$ 3,291,465$ Public safety 3,826,376 3,973,031 3,969,540 3,819,890 Public works 11,153,322 7,591,530 8,161,048 7,225,531 Culture and recreation 2,952,985 3,278,139 3,227,236 3,158,725 Community development 527,268 689,448 918,962 589,570 Interest on long-term debt 409,676 493,746 408,273 173,323 Total Governmental Activities Expenses 21,645,290 18,913,005 19,915,576 18,258,504 Business-type Activities Water 3,290,265 4,422,789 3,866,810 4,567,874 Sewer 3,297,128 3,254,619 3,746,880 4,122,804 Surface water management 1,328,144 1,388,979 1,538,468 1,634,475 Total Business-type Activities Expenses 7,915,537 9,066,387 9,152,158 10,325,153 Total Expenses 29,560,827$ 27,979,392$ 29,067,734$ 28,583,657$ Program Revenues Governmental Activities Charges for services General government 486,141$ 508,067$ 481,125$ 559,077$ Public safety 1,370,829 1,219,943 1,289,794 1,752,643 Public works 218,686 253,468 329,129 144,963 Culture and recreation 724,533 968,122 891,390 1,098,679 Community development 36,679 28,507 35,582 32,228 Operating grants and contributions 823,943 735,840 902,871 948,912 Capital grants and contributions 5,812,825 3,705,857 2,425,333 1,669,995 Total Governmental Activities Program Revenue 9,473,636 7,419,804 6,355,224 6,206,497 Business-type Activities Charges for services Water 2,611,895 2,717,285 2,921,936 3,121,292 Sewer 2,525,731 2,619,882 2,764,674 3,034,207 Surface water management 668,971 684,199 709,508 764,930 Operating grants and contributions 45,130 72,007 45,109 44,604 Capital grants and contributions 3,140,823 5,199,139 1,678,595 3,965,466 Total Business-type Activities Program Revenue 8,992,550 11,292,512 8,119,822 10,930,499 Total Program Revenues 18,466,186$ 18,712,316$ 14,475,046$ 17,136,996$ Fiscal Year 152 531 Table 2 2019 2020 2021 2022 2023 2024 2,968,604$ 3,503,418$ 3,545,101$ 3,537,796$ 4,326,016$ 3,810,386$ 4,045,361 3,975,838 4,055,112 4,396,715 5,825,937 5,463,958 9,808,088 25,142,224 17,282,830 11,350,075 10,646,546 10,953,832 3,275,021 2,704,009 2,957,867 3,432,625 4,252,161 3,896,895 535,700 754,205 814,146 850,151 868,229 998,188 132,327 107,993 72,195 71,680 218,628 1,053,664 20,765,101 36,187,687 28,727,251 23,639,042 26,137,517 26,176,923 5,842,506 4,908,477 5,245,018 7,301,583 5,782,514 5,966,996 3,879,581 4,312,195 5,025,866 6,548,611 5,359,316 5,838,537 1,918,378 1,694,090 2,541,714 4,489,250 2,565,581 3,861,546 11,640,465 10,914,762 12,812,598 18,339,444 13,707,411 15,667,079 32,405,566$ 47,102,449$ 41,539,849$ 41,978,486$ 39,844,928$ 41,844,002$ 320,681$ 426,339$ 394,576$ 483,008$ 952,621$ 466,197$ 1,474,555 1,550,768 2,283,340 1,555,525 1,556,441 1,943,159 140,753 396,649 275,801 210,555 81,253 475,766 1,078,128 162,546 613,935 648,730 1,007,606 588,499 28,866 30,426 16,060 33,385 44,243 43,391 2,770,655 14,970,473 6,047,214 2,552,195 4,556,281 9,443,046 4,716,702 4,066,959 4,683,258 3,881,530 1,693,875 2,662,398 10,530,340 21,604,160 14,314,184 9,364,928 9,892,320 15,622,456 3,108,307 3,533,939 4,384,603 4,485,402 5,193,977 4,133,781 3,144,282 3,260,080 3,469,282 3,699,835 3,998,048 4,330,428 998,832 1,083,833 1,458,751 1,564,000 1,807,415 2,071,574 460,905 39,552 38,380 47,850 46,458 56,775 3,108,377 2,084,681 8,513,319 4,090,784 1,853,961 5,594,435 10,820,703 10,002,085 17,864,335 13,887,871 12,899,859 16,186,993 21,351,043$ 31,606,245$ 32,178,519$ 23,252,799$ 22,792,179$ 31,809,449$ Fiscal Year 153 532 City of Chanhassen, Minnesota Statistical Section (Unaudited) Changes in Net Position (Continued) Last Ten Fiscal Years (Accrual Basis of Accounting) 2015 2016 2017 2018 Net (Expenses) Revenues Governmental activities (12,171,654)$ (11,493,201)$ (13,560,352)$ (12,052,007)$ Business-type activities 1,077,013 2,226,125 (1,032,336) 605,346 Total Primary Government (11,094,641)$ (9,267,076)$ (14,592,688)$ (11,446,661)$ General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes 10,536,216$ 10,643,917$ 10,826,116$ 10,877,849$ Tax increments 200,338 111,761 - - Franchise fees - - - - Grants and contributions not restricted to specific programs 21,679 19,754 19,753 19,755 Unrestricted investment earnings (loss)176,731 156,202 164,393 258,456 Sale of capital assets 66,248 41,129 38,254 45,244 Other general revenues - - - - Transfers (612,078) 73,032 (204,422) (319,528) Total Governmental Activities 10,389,134 11,045,795 10,844,094 10,881,776 Business-type Activities Unrestricted investment earnings 132,406 79,765 171,044 263,802 Sale of capital assets 57,510 25,224 - 10,568 Transfers 612,078 (73,032) 204,422 319,528 Total Business-type Activities 801,994 31,957 375,466 593,898 Total Primary Government 11,191,128$ 11,077,752$ 11,219,560$ 11,475,674$ Change in Net Position Governmental activities (1,782,520)$ (447,406)$ (2,716,258)$ (1,170,231)$ Business-type activities 1,879,007 2,258,082 (656,870) 1,199,244 Total Primary Government 96,487$ 1,810,676$ (3,373,128)$ 29,013$ Note: In 2023 & 2024, transfers for both governmental activities and business-type activities is shown as $0, as there were no transfers between opinion units. Fiscal Year 154 533 Table 2 2019 2020 2021 2022 2023 2024 (10,234,761)$ (14,583,527)$ (14,413,067)$ (14,274,114)$ (16,245,197)$ (10,554,467)$ (819,762) (912,677) 5,051,737 (4,451,573) (807,552) 519,914 (11,054,523)$ (15,496,204)$ (9,361,330)$ (18,725,687)$ (17,052,749)$ (10,034,553)$ 10,996,831$ 11,745,709$ 12,075,260$ 12,644,286$ 13,409,631$ 14,357,960$ - 236,485 279,653 279,283 282,067 444,581 185,181 1,826,255 2,019,812 2,036,470 2,045,767 2,040,308 20,009 - 311 170,656 390,075 141,257 491,345 368,168 (22,856) (824,062) 1,054,685 1,466,312 103,976 - 84,387 155,654 164,746 248,053 - - - - 126,114 170,653 283,007 239,676 (185,794) (334,918) - - 12,080,349 14,416,293 14,250,773 14,127,369 17,473,085 18,869,124 548,747 390,604 (78,079) (434,818) 540,984 406,491 43,498 1,795 - - - - (283,007) (239,676) 185,794 334,918 - - 309,238 152,723 107,715 (99,900) 540,984 406,491 12,389,587$ 14,569,016$ 14,358,488$ 14,027,469$ 18,014,069$ 19,275,615$ 1,845,588$ (167,234)$ (162,294)$ (146,745)$ 1,227,888$ 8,314,657$ (510,524) (759,954) 5,159,452 (4,551,473) (266,568) 926,405 1,335,064$ (927,188)$ 4,997,158$ (4,698,218)$ 961,320$ 9,241,062$ Fiscal Year 155 534 2015 2016 2017 2018 General Fund Nonspendable 72,114$ 25,832$ 81,032$ 87,067$ Assigned - - - - Unassigned 5,258,232 5,286,880 5,307,088 5,667,626 Total General Fund 5,330,346$ 5,312,712$ 5,388,120$ 5,754,693$ All other Governmental Funds Nonspendable 1,253,705$ -$ 990,723$ 9,326$ Restricted 5,824,354 8,673,981 8,458,576 2,618,680 Committed - - - - Assigned 5,586,353 7,806,958 6,602,135 6,414,882 Unassigned (372,509) (264,772) (154,506) (24,491) Total all other Governmental Funds 12,291,903$ 16,216,167$ 15,896,928$ 9,018,397$ Fiscal Year City of Chanhassen, Minnesota Statistical Section (Unaudited) Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 156 535 Table 3 2019 2020 2021 2022 2023 2024 82,265$ 63,775$ 69,953$ 91,340$ 63,227$ 135,138$ - - - 657,000 797,600 4,225,000 5,255,804 6,684,991 7,919,562 7,623,891 8,011,272 7,762,840 5,338,069$ 6,748,766$ 7,989,515$ 8,372,231$ 8,872,099$ 12,122,978$ 8,781$ 49,690$ 690$ -$ 15,400$ -$ 2,944,091 1,669,927 1,056,768 1,167,396 2,884,859 19,296,060 - - - - 344,647 144,359 6,657,125 6,809,934 7,819,511 8,603,977 7,112,372 5,100,013 (570) - (22,425) (94,155) (1,002,175) (20,494) 9,609,427$ 8,529,551$ 8,854,544$ 9,677,218$ 9,355,103$ 24,519,938$ Fiscal Year 157 536 2015 2016 2017 2018 Revenues Taxes 10,529,994$ 10,640,315$ 10,820,682$ 10,856,842$ Tax increment 200,338 111,761 - - Licenses and permits 1,565,900 1,653,858 1,641,140 2,289,052 Intergovernmental 4,897,139 974,917 2,149,875 2,019,215 Charges for services 799,543 846,540 838,498 820,745 Franchise fees - - - - Fines and forfeits 117,189 114,367 128,394 95,351 Special assessments 1,664,424 820,026 842,523 600,056 Investment earnings 176,731 156,202 164,393 258,456 Miscellaneous 431,752 486,962 512,701 452,781 Total Revenues 20,383,010 15,804,948 17,098,206 17,392,498 Expenditures General government 2,391,195 2,479,271 2,871,267 2,835,108 Public safety 3,431,541 3,713,146 3,602,897 3,593,877 Public works 7,537,376 3,961,016 4,617,523 3,847,782 Culture and recreation 2,068,532 2,256,314 2,395,554 2,326,272 Community development 515,382 659,276 940,000 610,368 Capital outlay 3,165,333 1,989,622 3,005,792 4,824,061 Debt service Principal 1,810,000 1,795,000 670,000 5,985,000 Interest and fiscal charges 439,470 483,533 433,925 295,294 Total Expenditures 21,358,829 17,337,178 18,536,958 24,317,762 Deficiency of Revenues Under Expenditures (975,819) (1,532,230) (1,438,752) (6,925,264) Other Financing Sources (Uses) Bond issued - 4,805,000 - - Project financing - - - - Leases issued - - - - Premium on bonds issued - 239,773 - - Sale of capital assets 41,015 90,318 19,286 58,458 Transfer in 2,158,844 1,347,883 1,924,157 6,724,164 Transfer out (1,701,005) (1,044,114) (748,522) (6,369,316) Total Other Financing Sources (Uses)498,854 5,438,860 1,194,921 413,306 Net Change in Fund Balances (476,965)$ 3,906,630$ (243,831)$ (6,511,958)$ Debt Service as a Percentage of Noncapital Expenditures 12.36%14.85%7.11%32.22% Fiscal Year City of Chanhassen, Minnesota Statistical Section (Unaudited) Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 158 537 Table 4 2019 2020 2021 2022 2023 2024 10,960,876$ 11,800,538$ 12,046,658$ 12,714,095$ 13,403,452$ 14,328,499$ - 236,485 279,653 279,283 282,067 444,581 2,047,190 1,574,780 2,608,294 1,684,578 1,952,623 2,249,933 6,294,417 18,569,329 6,883,846 3,698,522 4,026,405 8,421,376 808,010 546,809 535,608 693,912 1,028,021 1,101,914 - 1,826,255 2,019,812 2,036,470 2,045,767 2,040,308 89,989 73,800 78,673 69,173 76,295 75,887 727,026 464,373 987,431 1,098,027 1,318,777 1,397,913 491,345 368,168 (22,856) (824,062) 1,055,081 1,474,923 353,177 408,248 445,083 561,796 288,661 217,572 21,772,030 35,868,785 25,862,202 22,011,794 25,477,149 31,752,906 2,644,661 3,361,771 3,452,273 3,261,430 3,504,923 3,541,180 3,802,544 3,786,905 3,858,508 4,535,583 4,820,264 5,303,287 6,041,417 20,127,051 3,207,828 7,851,764 2,521,038 2,808,607 2,418,229 1,854,471 2,247,485 2,448,568 2,752,491 2,826,840 567,461 803,234 886,104 864,577 651,641 1,010,785 6,568,983 7,280,266 10,379,700 1,613,111 10,983,787 22,498,329 720,000 1,585,000 360,000 536,502 740,208 830,933 157,312 143,970 92,680 92,290 125,527 482,083 22,920,607 38,942,668 24,484,578 21,203,825 26,099,879 39,302,044 (1,148,577) (3,073,883) 1,377,624 807,969 (622,730) (7,549,138) - - - - - 24,250,000 - 546,108 288,929 - - - - - - 243,263 506,576 255,365 - - - - - 1,192,800 25,698 46,443 84,983 154,158 293,907 266,687 2,153,197 2,852,877 - 642,375 793,623 2,675,226 (855,912) (40,724) (185,794) (642,375) (793,623) (2,675,226) 1,322,983 3,404,704 188,118 397,421 800,483 25,964,852 174,406$ 330,821$ 1,565,742$ 1,205,390$ 177,753$ 18,415,714$ 5.37%5.46%3.21%3.21%4.08%5.75% Fiscal Year 159 538 City of Chanhassen, Minnesota Statistical Section (Unaudited) Tax Capacity and Estimated Market Value of Property Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2015 2016 2017 2018 Tax Capacity Residential property 32,778,287$ 33,790,483$ 34,470,607$ 36,545,419$ Agricultural 153,500 222,144 278,224 296,153 Commercial/Industrial property 9,205,053 9,508,063 9,910,242 10,317,456 All other 620,620 669,890 764,420 869,646 Total Tax Capacity 42,757,460 44,190,580 45,423,493 48,028,674 Captured tax capacity on tax increment district (267,337) (103,638) - - Fiscal disparity contribution (1,896,611) (2,119,400) (2,055,461) (2,009,509) Adjusted Tax Capacity 40,593,512$ 41,967,542$ 43,368,032$ 46,019,165$ City direct tax rate 24.63317 24.25249 23.85464 22.66614 Estimated market value 3,686,777,200$ 3,802,904,100$ 3,899,829,200$ 4,112,577,100$ Tax Capacity as a Percent of EMV 1.10%1.10%1.11%1.12% Source: Carver County Taxpayer Services and Hennepin County Fiscal Year 160 539 Table 5 2019 2020 2021 2022 2023 2024 39,891,179$ 42,947,538$ 43,933,317$ 45,814,017$ 54,661,795$ 56,846,427$ 191,360 135,300 133,667 125,056 138,075 140,037 10,897,809 11,666,538 12,245,999 12,596,386 13,760,724 14,874,523 896,937 886,150 935,227 600,978 601,659 564,789 51,877,285 55,635,526 57,248,210 59,136,437 69,162,253 72,425,776 - (248,355) (294,955) (299,262) (343,924) (530,995) (2,001,778) (2,077,771) (2,261,018) (2,268,028) (2,440,367) (2,792,897) 49,875,507$ 53,309,400$ 54,692,237$ 56,569,147$ 66,377,962$ 69,101,884$ 21.10456 21.17559 22.11399 22.41520 20.19532 20.95605 4,444,627,000$ 4,749,987,200$ 4,868,292,100$ 5,041,556,300$ 5,886,580,500$ 6,127,185,500$ 1.12%1.12%1.12%1.12%1.13%1.13% Fiscal Year 161 540 Table 6 Statistical Section (Unaudited) Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years Fiscal Year Direct & Ended Operational Debt City School Carver Overlapping December 31 and Capital Service Total District #112 County Other Total 2015 21.532 %3.101 %24.633 %39.120 %40.488 %6.270 %110.511 % 2016 21.314 2.938 24.252 39.245 38.880 6.417 108.794 2017 21.536 2.317 23.853 37.005 38.851 6.565 106.274 2018 20.731 1.935 22.666 33.837 37.436 6.537 100.476 2019 19.314 1.791 21.105 33.631 36.488 6.368 97.592 2020 19.484 1.692 21.176 33.006 35.179 6.101 95.462 2021 21.235 0.879 22.114 32.327 34.634 5.981 95.056 2022 21.559 0.856 22.415 31.220 34.170 5.747 93.552 2023 19.472 0.723 20.195 27.747 29.267 5.012 82.221 2024 20.135 0.821 20.956 28.660 30.106 5.241 84.963 Source: Carver County Taxpayer Services *The City Direct Rate is the Urban Based Rate, not including market value levies. City Direct Rate*Overlapping Governments City of Chanhassen, Minnesota 162 541 Table 7City of Chanhassen, Minnesota Statistical Section (Unaudited) Principal Property Taxpayers Current Year and Ten Years Ago Taxable Taxable Capacity Capacity Value Rank Value Rank Nicola Dell5 LP 1,207,110$ 1 1.7 %-$ - % LFT Real Estate Company Inc 960,798 2 1.4 - - Istar Minnesota LLC 724,642 3 1.0 420,786 1 1.0 IPX West Village Station LLC 452,076 4 0.6 - - Lake Susan Apartment Homes LLC 433,391 5 0.6 - - Rosemount 407,724 6 0.6 316,584 3 0.8 Chanhassen Frontier LLC 353,079 7 0.5 - - 8610 LLP 322,060 8 0.5 - - Mission Hills Sr Housing Owner LLC 304,249 9 0.4 - - James Campbell Company LLC 275,300 10 0.4 - - IRET Properties - - 387,666 2 0.9 Northern States Power Co - - 274,550 4 0.7 LTF Real Estate VRDN I LLC - - 239,202 5 0.6 LTF Real Estate MP II LLC - - 208,712 6 0.5 Target Corporation T-0862 - - 200,872 7 0.5 PHM/Chanhassen Inc - - 198,833 8 0.5 DRF Chanhassen Medical Bldg - - 194,888 9 0.5 Centerpoint Energy Minnegasco - - 182,536 10 0.4 Total 5,440,429$ 7.7 %2,624,629$ 6.4 % Total All Property 71,048,482$ 41,145,495$ Source: Carver County Taxpayer Services and Hennepin County (1) Information pertaining to Hennepin County was not available, information listed is for Carver County only. 2024 2015 (1) Taxpayer Capacity Value Total City Percentage of Capacity Value Total City Percentage of 163 542 THIS PAGE IS LEFT BLANK INTENTIONALLY 164 543 Table 8City of Chanhassen, Minnesota Statistical Section (Unaudited) Property Tax Levies and Tax Collections Last Ten Fiscal Years Collection Collections Fiscal Total of Current in Subsequent Total Year Levy Year's Levy Years Collections 2015 10,484,021 10,446,765 99.6 26,753 10,473,518 99.9 % 2016 10,629,621 10,564,815 99.4 49,076 10,613,891 99.9 2017 10,795,121 10,718,876 99.3 21,785 10,740,661 99.5 2018 10,913,868 10,834,344 99.3 35,653 10,869,997 99.6 2019 11,019,868 10,924,102 99.1 67,454 10,991,556 99.7 2020 11,741,368 11,656,656 99.3 40,136 11,696,792 99.6 2021 12,066,700 12,013,225 99.6 48,368 12,061,593 100.0 2022 12,663,076 12,614,877 99.6 (667) 12,614,210 99.6 2023 13,463,000 13,397,330 99.5 1,865 13,399,195 99.5 2024 14,455,000 14,380,337 99.5 - 14,380,337 99.5 Source: City Finance Department of Levy Percentage Collected To Date of Levy Collected Percentage 165 544 General Tax General Fiscal Obligation Revenue Increment Improvement Lease Other Year Bonds Bonds Bonds Bonds Obligations Debt (1) 2015 8,925,000$ -$ -$ 1,155,000$ -$ -$ 2016 13,313,788 - - - - - 2017 12,627,803 - - - - - 2018 6,626,818 - - - - - 2019 5,890,833 - - - - - 2020 4,289,848 - - - - 546,108 2021 3,913,863 - - - - 835,037 2022 3,527,878 - - - 221,761 690,037 2023 3,126,893 - - - 614,439 448,727 2024 28,158,708 - - - 675,181 207,417 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard-Phase 3 project and the pedestrian trail to the Arboretum. The City is paying its portion of those projects to Carver County through 2025 at 0% interest. (2) Information pertaining to Chanhassen Personal Income is not available, information for Carver County was included instead. (a) Information not available City of Chanhassen, Minnesota Statistical Section (Unaudited) Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities 166 545 Table 9 G.O.Total Revenue Lease Primary Per Bonds Obligations Government Capita 9,256,235$ -$ 19,336,235$ 0.30 784$ 13,926,719 - 27,240,507 0.42 1,092 23,379,318 - 36,007,121 0.52 1,425 25,671,988 - 32,298,806 0.44 1,238 23,755,499 - 29,646,332 0.38 1,125 28,535,933 - 33,371,889 0.41 1,228 26,311,508 - 31,060,408 0.34 1,182 24,132,877 26,136 28,598,689 0.29 1,081 22,169,245 37,140 26,396,444 0.25 977 20,295,613 218,636 49,555,555 (a)1,920 Income (2) of Personal Percentage Business-type Activities 167 546 General G.O. Tax G.O.G.O.Total General Fiscal Obligation Increment Improvement Revenue Obligation Year Bonds Bonds Bonds Bonds Bonded Debt 2015 8,925,000$ -$ 1,155,000$ 9,256,235$ 19,336,235$ 2016 13,313,788 - - 13,926,719 27,240,507 2017 12,627,803 - - 23,379,318 36,007,121 2018 6,626,818 - - 25,671,988 32,298,806 2019 5,890,833 - - 23,755,499 29,646,332 2020 4,289,848 - - 28,535,933 32,825,781 2021 3,913,863 - - 26,311,508 30,225,371 2022 3,527,878 - - 24,132,877 27,660,755 2023 3,126,893 - - 22,169,245 25,296,138 2024 28,158,708 - - 20,295,613 48,454,321 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. City of Chanhassen, Minnesota Statistical Section (Unaudited) Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years 168 547 Table 10 Net General Less Amounts Net General Percentage Obligation Restricted for Obligation of Tax Bonded Debt Debt Service Bonded Debt Capacity Per Capita (3,455,171)$ 15,881,064$ 38.60%644$ (6,418,913) 20,821,594 48.72%834 (6,413,214) 29,593,907 67.23%1,171 (1,189,446) 31,109,360 66.81%1,192 (1,283,606) 28,362,726 56.31%1,076 (564,713) 32,261,068 60.00%1,187 (594,203) 29,631,168 53.63%1,128 (618,646) 27,042,109 47.38%1,031 (673,860) 24,622,278 37.09%912 (897,387) 47,556,934 68.82%1,843 169 548 THIS PAGE IS LEFT BLANK INTENTIONALLY 170 549 Table 11City of Chanhassen, Minnesota Statistical Section (Unaudited) Computation of Direct and Overlapping Debt December 31, 2024 Estimated Share of Debt Overlapping Outstanding Debt Direct Debt City of Chanhassen (1)(2)29,041,306$ 100.00 %29,041,306$ Overlapping Debt Eastern Carver County School District 117,520,000 34.37 %40,391,624 Eden Prairie Independent School District 95,804,496 1.04 996,367 Carver County 5,930,000 28.95 1,716,735 Hennepin County 1,192,537,479 0.06 715,522 Hennepin Suburban Park District 48,916,041 0.08 39,133 Hennepin Regional Railroad Authority 76,774,733 0.06 46,065 Metropolitan Council 40,609,929 0.03 12,183 Total Overlapping Debt 1,578,092,678 64.59 43,917,629 Total Direct and Overlapping Debt 1,607,133,984$ 72,958,935$ (1) Excludes debt related to the City's business-type activities. (2) The City has a Joint Powers Agreement for the Lyman Boulevard-Phase 3 project and the pedestrian trail to the Arboretum. Included in this total is the amount the City is paying for its share of those projects to Carver County through 2025 at 0% interest. Estimated Percentage Applicable 171 550 City of Chanhassen, Minnesota Statistical Section (Unaudited) Legal Debt Margin Information Last Ten Fiscal Years 2015 2016 2017 2018 Population 24,655 24,951 25,273 26,088 Debt Limit 110,603,316$ 114,087,123$ 116,994,876$ 123,377,313$ Total Net Debt Applicable to Limit 7,346,583 6,721,445 6,048,333 5,377,482 Legal Debt Margin 103,256,733$ 107,365,678$ 110,946,543$ 117,999,831$ Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 6.64%5.89%5.17%4.36% Total Net Debt Applicable to Limit per Capita 298$ 269$ 239$ 206$ Legal Debt Margin Calculation for Fiscal Year Estimated Taxable Market Value Debt Limit (3% of Taxable Market Value) Debt Applicable to Limit Total Bonded Debt Less Special Assessment Bonds Tax Increment Bonds Enterprise Fund Debt Less Cash and investments in G.O. Bond Debt Service Fund Total Net Debt Applicable to Limit Legal Debt Margin Note: Under state of Minnesota law, the City's outstanding general obligation debt should not exceed 3 percent of the market value of taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for the extinguishment of those obligations. Fiscal Year 172 551 Table 12 2019 2020 2021 2022 2023 2024 26,335 27,170 26,271 26,237 27,005 25,807 133,338,810$ 142,499,616$ 146,048,763$ 151,246,689$ 176,597,415$ 183,815,565$ 4,555,132 3,686,297 3,288,043 2,883,662 2,431,979 26,848,686 128,783,678$ 138,813,319$ 142,760,720$ 148,363,027$ 174,165,436$ 156,966,879$ 3.42%2.59%2.25%1.91%1.38%14.61% 173$ 136$ 125$ 110$ 90$ 1,040$ 6,127,185,500$ 183,815,565$ 48,454,321$ - - (20,295,613) (1,310,022) 26,848,686 156,966,879$ Fiscal Year 173 552 Table 13 Special Fiscal Assessment Year Collections Principal Interest 2015 751,995$ 550,000$ 42,900$ 1.268 % 2016 6,298 1,155,000 26,175 0.005 2017 - - - - 2018 - - - - 2019 - - - - 2020 - - - - 2021 - - - - 2022 - - - - 2023 - - - - 2024 - - - - Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Improvement bonds with a designated revenue source of special assessments were paid off in 2016. Debt Service Coverage City of Chanhassen, Minnesota Statistical Section (Unaudited) Pledged-revenue Coverage Last Ten Fiscal Years Improvement Bonds 174 553 Table 14City of Chanhassen, Minnesota Statistical Section (Unaudited) Demographic and Economic Statistics Last Ten Fiscal Years Carver County Carver County Fiscal Chanhassen Personal Income Per Capita Year Population (1)(thousands)(4)Personal Income 2015 24,655 2.9 %3.2 %6,376,686$ 64,431$ 2016 24,951 2.9 3.3 6,539,351 64,864 2017 25,273 3.0 2.9 6,990,605 68,125 2018 26,088 2.6 2.5 7,383,477 70,880 2019 26,355 2.7 2.8 7,755,123 73,328 2020 27,170 5.4 5.2 8,064,279 75,158 2021 26,271 2.7 2.9 9,077,666 83,389 2022 26,237 1.8 2.0 9,736,399 88,416 2023 27,005 2.3 2.4 10,355,178 93,242 2024 25,807 2.5 2.6 (a)(a) Sources:(1) Federal Census Data and Chanhassen Planning Department (2) State of Minnesota, Department of Employment and Economic Development (3) U.S. Department of Commerce, Bureau of Economic Analysis (a) Information not available Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information for Carver County was included instead. Rate (3) Unemployment Carver CountyChanhassen Unemployment Rate (2) 175 554 Number of Employees Rank Lifetime Fitness 1,350 1 26.7 % The Bernard Group 749 2 14.8 Instant Web Companies 718 3 14.2 Rosemount Inc 554 4 11.0 General Mills 350 5 6.9 Eastern Carver County Schools 341 6 6.7 Chanhassen Dinner Theatres 340 7 6.7 Target 234 8 4.6 Minnesota Landscape Arboretum 212 9 4.2 RR Donnelley 210 10 4.2 Exlar Corporation - Total 5,058 100.0 % Source: Survey by City Administration and Finance Departments. Note: This does not purport to be a comprehensive list and is based on available data obtained through a survey of individual employers. Some employers do not respond to inquiries for employment data. (1) The statistic for total City employment is not available, therefore the percentage represents the percentage of the top ten listed. 2024 Percent of Total City City of Chanhassen, Minnesota Statistical Section (Unaudited) Principal Employers Current Year and Nine Years Ago Employer Employment (1) 176 555 Table 15 Number of Employees Rank 1,166 3 19.8 % 500 4 8.5 1,236 1 20.9 1,196 2 20.3 335 7 5.7 400 5 6.8 259 8 4.4 - 231 9 3.9 382 6 6.5 195 10 3.3 5,900 100.0 % Employment (1) 2015 Percent of Total City 177 556 City of Chanhassen, Minnesota Full-time Equivalent City Government Employees by Function Last Ten Fiscal Years 2015 2016 2017 2018 General Government 13 13 13 13 Public Safety 10 10 10 10 Public Works 28 29 31 31 Culture and Recreation 11 12 13 13 Community Development 5 6 6 6 Total 67 70 73 73 Source: City Finance Department Function 178 557 Table 16 2019 2020 2021 2022 2023 2024 13 13 15 17 17 17 9 9 11 13 17 18 31 32 32 32 33 33 13 14 14 13 13 13 6 6 6 6 5 5 72 74 78 81 85 86 179 558 City of Chanhassen, Minnesota Operating Indicators by Function Last Ten Fiscal Years 2015 2016 2017 2018 3,266 2,891 2,981 3,085 82,145,483$ 73,881,121$ 82,430,550$ 136,016,287$ 16,344 17,769 17,769 17,480 45 45 45 45 22.88 22.88 22.88 22.88 employees (excluding fire department)67 70 73 73 15 15 15 15 Number of crimes - MNCJRS (1)870 313 - - Number of crimes - NIBRS (1)- 472 737 698 Water Number of customers 8,195 8,254 8,312 8,407 Daily average consumption - gallons 2,495,868 2,565,905 2,624,486 2,888,586 Plant capacity - gallons 8,550,000 8,550,000 8,550,000 17,100,000 (1) Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice Reporting System (MNCJRS). The Federal Bureau of Investigation has mandated that all states become National Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff's Office transitioned to NIBRS June 1, 2016. Registered voters Function/Program Building Total permits issued Total estimated value Election Average number of permanent full-time Police Average number of employees Source: Various City Departments Fire Average number of employees General government Area of city - square miles 180 559 Table 17 2019 2020 2021 2022 2023 2024 3,259 4,528 6,072 3,936 3,439 3,277 103,902,405$ 87,160,588$ 160,438,828$ 87,812,422$ 90,564,997$ 160,521,505$ 17,480 19,245 19,245 19,182 19,182 19,959 45 45 41 37 30 27 22.88 22.88 22.88 22.88 22.88 22.88 72 74 78 81 85 86 15 15 15 15 15 15 - - - - - - 692 796 758 740 526 443 8,481 8,539 8,608 8,689 8,732 8,760 2,247,455 2,677,163 3,040,992 2,953,945 3,087,597 2,429,693 17,100,000 17,100,000 17,100,000 17,100,000 17,100,000 17,100,000 181 560 City of Chanhassen, Minnesota Capital Asset Statistics by Function Last Ten Fiscal Years 2015 2016 2017 2018 Fire Number of stations 2 2 2 2 Culture and Recreation Acres of parks 384 384 445 445 Acres of open space 568 568 593 593 Number of shelter buildings 4 4 4 4 Number of picnic shelters 13 15 18 21 Number of playgrounds 27 27 27 27 Number of swimming beaches 5 5 5 5 Number of tennis courts 15 15 16 16 Number of outdoor pickleball courts 6 6 10 10 Police Number of stations 1 1 1 1 Public works Miles of streets 114.7 117.3 117.3 117.8 Miles of sidewalks 34.7 36.7 36.7 36.7 Miles of trails 57.4 59.9 59.9 62.5 Sewer Miles of storm sewers 76.0 81.5 81.7 84.0 Miles of sanitary sewers 124.1 127.0 127.0 127.4 Number of lift stations 31 31 31 31 Water Miles of watermains 142.1 147.0 147.0 150.2 Number of wells 12 13 13 13 Source: Various City Departments Function/Program 182 561 Table 18 2019 2020 2021 2022 2023 2024 2 2 2 2 1 1 445 445 445 445 445 440 693 693 693 693 693 693 4 4 4 4 4 4 21 21 21 21 21 21 28 28 28 28 28 28 5 5 5 5 5 5 16 16 16 16 16 16 10 10 10 10 10 10 1 1 1 1 1 1 117.9 118.1 118.1 118.9 118.9 118.7 36.7 36.7 36.7 36.8 36.8 36.9 63.9 66.2 66.6 66.6 68.9 74.7 84.1 84.9 85.9 86.9 87.4 88.5 127.5 127.7 128.4 130.3 130.3 133.8 31 31 31 32 32 32 150.4 151.1 151.6 152.5 154.7 159.1 13 13 13 13 13 13 183 562 APPENDIX B FORM OF LEGAL OPINION (See following pages) B-1 563 171292249v2 PROPOSED FORM OF LEGAL OPINION $_____________ GENERAL OBLIGATION TEMPORARY SALES TAX REVENUE BONDS, SERIES 2025A CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES MINNESOTA We have acted as bond counsel in connection with the issuance by the City of Chanhassen, Carver and Hennepin Counties, Minnesota (the "Issuer"), of its $_____________ General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A, bearing a date of original issue of June 26, 2025 (the "Bonds"). We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and we express no opinion relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Minnesota and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the date hereof), regulations, rulings and decisions, it is our opinion that: (1)The proceedings show lawful authority for the issuance of the Bonds according to their terms under the Constitution and laws of the State of Minnesota now in force. (2)The Bonds are valid and binding general obligations of the Issuer, and all of the taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay the same without limitation as to rate or amount; provided that the enforceability (but not the validity) of the Bonds and the pledge of taxes for the payment of the principal and interest thereon is subject to the exercise of judicial discretion in accordance with general principles of equity, to the constitutional powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. (3)At the time of the issuance and delivery of the Bonds to the original purchaser, the interest on the Bonds is excluded from gross income for United States income tax purposes and is B-2 564 171292249v2 excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals or the Minnesota alternative minimum tax applicable to individuals, estates or trusts; however, interest on the Bonds is taken into account in determining "annual adjusted financial statement income" for the purpose of computing the federal alternative minimum tax imposed on certain corporations. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes and from both gross income and taxable net income for State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. We express no opinion regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. This opinion is given as of the date hereof, and we assume no obligation to update, revise, or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur and be retroactive. TAFT STETTINIUS & HOLLISTER LLP B-3 565 APPENDIX C BOOK-ENTRY-ONLY SYSTEM 1.The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. C-1 566 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] 6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book-entry credit of tendered Securities to [Tender/Remarketing] Agent's DTC account. 10.DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11.The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12.The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. C-2 567 APPENDIX D FORM OF CONTINUING DISCLOSURE UNDERTAKING (See following pages) D-1 568 171292269v2 [Appendix ___ to Official Statement] PROPOSED FORM OF CONTINUING DISCLOSURE UNDERTAKING This Continuing Disclosure Undertaking (the "Disclosure Undertaking") is executed and delivered by the City of Chanhassen, Minnesota (the "Issuer"), in connection with the issuance of its $_____________ General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A (the "Bonds"). The Bonds are being issued pursuant to a Resolution adopted on June 9, 2025 (the "Resolution"). Pursuant to the Resolution and this Disclosure Undertaking, the Issuer covenants and agrees as follows: SECTION 1. Purpose of the Disclosure Undertaking. This Disclosure Undertaking is being executed and delivered by the Issuer for the benefit of the Owners and in order to assist the Participating Underwriters in complying with SEC Rule 15c2-12(b)(5). SECTION 2. Definitions. In addition to the definitions set forth in the Resolution, which apply to any capitalized term used in this Disclosure Undertaking unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any annual financial information provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Undertaking. "Audited Financial Statements" shall mean the financial statements of the Issuer audited annually by an independent certified public accounting firm, prepared pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, modified by governmental accounting standards promulgated by the Government Accounting Standards Board. "Dissemination Agent" shall mean such party from time to time designated in writing by the Issuer to act as information dissemination agent and which has filed with the Issuer a written acceptance of such designation. "Financial Obligation" shall mean a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). This term shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Fiscal Year" shall be the fiscal year of the Issuer. "Governing Body" shall, with respect to the Bonds, have the meaning given that term in Minnesota Statutes, Section 475.51, Subdivision 9. "MSRB" shall mean the Municipal Securities Rulemaking Board. "Occurrence(s)" shall mean any of the events listed in Section 5 of this Disclosure Undertaking. D-2 569 171292269v2 "Official Statement" shall be the Official Statement dated __________, 2025, prepared in connection with the Bonds. "Owners" shall mean the registered holders and, if not the same, the beneficial owners of any Bonds. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Resolution" shall mean the resolution or resolutions adopted by the Governing Body of the Issuer providing for, and authorizing the issuance of, the Bonds. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time or interpreted by the Securities and Exchange Commission. SECTION 3. Provision of Annual Reports. A. Beginning in connection with the Fiscal Year ending on December 31, 2025, the Issuer shall, or shall cause the Dissemination Agent to provide to the MSRB by filing at www.emma.msrb.org, together with such identifying information as prescribed by the MSRB, an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Undertaking by not later than December 31, 2026, and by December 31 of each year thereafter. B. If the Issuer is unable to provide to the MSRB an Annual Report by the date required in subsection A, the Issuer shall send a notice of such delay and estimated date of delivery to the MSRB. SECTION 4. Content and Format of Annual Reports. The Issuer's Annual Report shall contain or incorporate by reference the financial information and operating data pertaining to the Issuer listed below as of the end of the preceding Fiscal Year. The Annual Report may be submitted to the MSRB as a single document or as separate documents comprising a package, and may cross-reference other information as provided in this Disclosure Undertaking. The following financial information and operating data shall be supplied: A. An update of the operating and financial data of the type of information contained in the Official Statement under the captions: Current Property Valuations; Direct Debt; Tax Levies and Collections; US Census Data/Population Trend; and Employment/Unemployment Data. B. Audited Financial Statements of the Issuer. The Audited Financial Statements of the Issuer may be submitted to the MSRB separately from the balance of the Annual Report. In the event Audited Financial Statements of the Issuer are not available on or before the date for filing the Annual Report with the MSRB as set forth in Section 3.A. above, unaudited financial statements shall be provided as part of the Annual Report. The accounting principles pursuant to which the financial statements will be prepared will be pursuant to generally accepted accounting principles promulgated by the Financial Accounting Standards Board, as such principles are modified by the governmental accounting standards promulgated by the Government Accounting D-3 570 171292269v2 Standards Board, as in effect from time to time. If Audited Financial Statements are not provided because they are not available on or before the date for filing the Annual Report, the Issuer shall promptly provide them to the MSRB when available. SECTION 5. Reporting of Significant Events. This Section 5 shall govern the giving of notices of the occurrence of any of the following events with respect to the Bonds: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of security holders, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership or similar event of the Issuer; (13) The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material; (15) Incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and, (16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties. Whenever an event listed above has occurred, the Issuer shall promptly, which may not be in excess of the ten (10) business days after the Occurrence, file a notice of such Occurrence with the MSRB, by filing at www.emma.msrb.org, together with such identifying information as prescribed by the MSRB. The Issuer agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of a failure by the Issuer to provide the Annual Reports described in Section 4. D-4 571 171292269v2 SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure Undertaking shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Undertaking, the Issuer may amend this Disclosure Undertaking, and any provision of this Disclosure Undertaking may be waived, if (a) a change in law or change in the ordinary business or operation of the Issuer has occurred, (b) such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule, and (c) such amendment or waiver is supported by an opinion of counsel expert in federal securities laws to the effect that such amendment or waiver would not materially impair the interests of Owners. SECTION 9. Additional Information. Nothing in this Disclosure Undertaking shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Undertaking or any other means of communication, or including any other information in any Annual Report or notice of an Occurrence, in addition to that which is required by this Disclosure Undertaking. If the Issuer chooses to include any information in any Annual Report or notice of an Occurrence in addition to that which is specifically required by this Disclosure Undertaking, the Issuer shall have no obligation under this Disclosure Undertaking to update such information or include it in any future Annual Report or notice of an Occurrence. SECTION 10. Default. In the event of a failure of the Issuer to provide information required by this Disclosure Undertaking, any Owner may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its obligations to provide information under this Disclosure Undertaking. A default under this Disclosure Undertaking shall not be deemed an Event of Default under the Resolution, and the sole remedy under this Disclosure Undertaking in the event of any failure of the Issuer to comply with this Disclosure Undertaking shall be an action to compel performance. SECTION 11. Beneficiaries. This Disclosure Undertaking shall inure solely to the benefit of the Issuer, the Participating Underwriters and Owners from time to time of the Bonds, and shall create no rights in any other person or entity. SECTION 12. Reserved Rights. The Issuer reserves the right to discontinue providing any information required under the Rule if a final determination should be made by a court of competent jurisdiction that the Rule is invalid or otherwise unlawful or, subject to the provisions of Section 8 hereof, to modify the undertaking under this Disclosure Undertaking if the Issuer determines that such modification is required by the Rule or by a court of competent jurisdiction. D-5 572 171292269v2 Dated: June 26, 2025. CITY OF CHANHASSEN, MINNESOTA By _________________________________ Its Mayor By _________________________________ Its City Manager D-6 573 APPENDIX E TERMS OF PROPOSAL $13,185,000* GENERAL OBLIGATION BONDS SERIES 2025A CITY OF CHANHASSEN, MINNESOTA Proposals for the purchase of $13,185,000* General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A (the "Bonds") of the City of Chanhassen, Minnesota (the "City") will be received at the offices of Ehlers and Associates, Inc. ("Ehlers"), 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, municipal advisors to the City, until 10:00 A.M., Central Time, and ELECTRONIC PROPOSALS will be received via bondsale@ehlers- inc.com or PARITY, in the manner described below, until 10:00 A.M., Central Time, on June 9, 2025, at which time they will be opened, read and tabulated. The proposals will be presented to the City Council for consideration for award by resolution at a meeting to be held at 7:00 P.M., Central Time, on the same date. The proposal offering to purchase the Bonds upon the terms specified herein and most favorable to the City will be accepted unless all proposals are rejected. AUTHORITY; PURPOSE; SECURITY The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, as amended, particularly Section 475.61, subd. 6 and Minnesota Session Laws 2023, Chapter 64, Article 10, Section 29 (the "Special Legislation"), by the City, to provide temporary financing to facilitate land acquisition and design for the City's community center project (the "Project") as authorized by the Special Legislation. The Bonds are general obligations of the City, for which its full faith and credit and taxing powers are pledged. Delivery is subj ect to receipt of an approving legal opinion of Taft Stettinius & Hollister LLP, Minneapolis, Minnesota. DATES AND MATURITIES The Bonds will be dated June 26, 2025, will be issued as fully registered Bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature as follows: Year Amount 2028 $13,185,000 ADJUSTMENT OPTION The City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price proposed will be adj usted to maintain the same gross spread per $1,000. INTEREST PAYMENT DATES AND RATES Interest will be payable on February 1 and August 1 of each year, commencing February 1, 2026, to the registered owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the Municipal Securities Rulemaking Board. All Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. E-1 574 BOOK-ENTRY-ONLY FORMAT Unless otherwise specified by the purchaser, the Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Bonds, and will be responsible for maintaining a book-entry system for recording the interests of its participants and the transfers of interests between its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the individual purchasers of the Bonds. So long as Cede & Co. is the registered owner of the Bonds, all payments of principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its participants for subsequent disbursement to the beneficial owners of the Bonds. PAYING AGENT The City has selected Bond Trust Services Corporation, Roseville, Minnesota ("BTSC"), to act as paying agent (the "Paying Agent"). BTSC and Ehlers are affiliate companies. The City will pay the charges for Paying Agent services. The City reserves the right to remove the Paying Agent and to appoint a successor . OPTIONAL REDEMPTION At the option of the City, the Bonds maturing February 1, 2028 shall be subject to optional redemption prior to maturity on August 1, 2026 or any date thereafter, at a price of par plus accrued interest to the date of optional redemption. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the selection of the amounts of the Bonds to be redeemed shall be at the discretion of the City. If only part of the Bonds having a common maturity date are called for redemption, then the City or Paying Agent, if any, will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeemed. Notice of redemption shall be sent by mail not more than 60 days and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books. DELIVERY On or about June 26, 2025, the Bonds will be delivered without cost to the winning bidder at DTC. On the day of closing, the City will furnish to the winning bidder the opinion of bond counsel hereinafter described, an arbitrage certification, and certificates verifying that no litigation in any manner questioning the validity of the Bonds is then pending or, to the best knowledge of officers of the City, threatened. Payment for the Bonds must be received by the City at its designated depository on the date of closing in immediately available funds. LEGAL OPINION An opinion as to the validity of the Bonds and the exemption from taxation of the interest thereon will be furnished by Taft Stettinius & Hollister LLP, Minneapolis, Minnesota, Bond Counsel to the City ("Bond Counsel"), and will be available at the time of delivery of the Bonds. T he legal opinion will state that the Bonds ar e valid and binding general obligations of the City; provided that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' rights and by equitable principles (which may be applied in either a legal or equitable proceeding). See "FORM OF LEGAL OPINION" found in Appendix B. E-2 575 By expressing its opinion, Bond Counsel is expressing its professional judgment and does not become an insurer or guarantor of the result indicated by that expression of professional judgment or of the transaction or the future performance of the parties to the transaction. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding the applicability of any such state and local taxes. STATEMENT REGARDING BOND COUNSEL PARTICIPATION Bond Counsel has neither been engaged nor undertaken to prepare or independent ly verify the accuracy of any portion of the Official Statement, including the financial or operational information of the Issuer and risks associated with the purchase of the Bonds, except for statements under "TAX EXEMPTION" herein that summarize certain provisions of the Internal Revenue Code of 1986, as amended, the Bonds and any opinion rendered by Bond Counsel. Bond Counsel has prepared the form of legal opinion attached hereto as "APPENDIX B - FORM OF LEGAL OPINION." SUBMISSION OF PROPOSALS Proposals must not be for less than $13,105,890 plus accrued interest on the principal sum of $13,185,000 from date of original issue of the Bonds to date of delivery. Prior to the time established above for the opening of proposals, interested parties may submit a proposal as follows: 1)Electronically to bondsale@ehlers-inc.com; or 2) Electronically via PARITY in accordance with this Terms of Proposal until 10:00 A.M., Central Time, but no proposal will be received after the time for receiving proposals specified above. To the extent any instructions or directions set forth in PARITY conflict with this Terms of Proposal, the terms of this Terms of Proposal shall control. For further information about PARITY, potential bidders may contact IHS Markit (now part of S&P Global) at https://ihsmarkit.com/products/municipal-issuance.ht ml or via telephone (844) 301-7334. Proposals must be submitted to Ehlers via one of the methods described above and must be received prior to the time established above for the opening of proposals. Each proposal must be unconditional except as to legality. Neither the City nor Ehlers shall be responsible for any failure to receive a submission. A good faith deposit ("Deposit") in the amount of $263,700 shall be made by the winning bidder by wire transfer of funds. Such Deposit shall be received by Ehlers no later than two hours after the proposal opening time. Wire transfer instructions will be provided to the winning bidder by Ehlers after the tabulation of proposals. The City reserves the right to award the Bonds to a winning bidder whose wire transfer is initiated but not received by such time provided that such winning bidder's federal wire reference number has been received by such time. In the event the Deposit is not received as provided above, the City may award the Bonds to the bidder submitting the next best proposal provided such bidder agrees to such award. The Deposit will be retained by the City as liquidated damages if the proposal is accepted and the Purchaser fails to comply therewith. The Deposit will be deducted from the purchase price at the closing for the Bonds. E-3 576 The City and the winning bidder who chooses to so wire the Deposit hereby agree irrevocably that Ehlers shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: 1) All income earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the proposal is not accepted, Ehlers shall, at its expense, promptly return the Deposit amount to the winning bidder; 3) If the proposal is accepted, the Deposit shall be returned to the winning bidder at the closing; 4) Ehlers shall bear all costs of maintaining the escrow account and returning the funds to the winning bidder; 5) Ehlers shall not be an insurer of the Deposit amount and shall have no liability hereunder except if it willfully fails to perform or recklessly disregards, its duties specified herein; and 6) FDIC insurance on deposi ts within the escrow account shall be limited to $250,000 per bidder. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. AWARD The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a True Interest Cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The City reserves the right to reject any and all proposals and to waive any informality in any proposal. BOND INSURANCE If the Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option and expense of the winning bidder. Any cost for such insurance policy is to be paid by the winning bidder, except that, if the City requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any rating agency fees not requested by the City are the responsibility of the winning bidder. Failure of the municipal bond insurer to issue the policy after the Bonds are awarded to the winning bidder shall not constitute cause for failure or refusal by the winning bidder to accept delivery of the Bonds. CUSIP NUMBERS The City will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the winning bidder, if the winning bidder waives any delay in delivery occasioned thereby. NON-QUALIFIED TAX-EXEMPT OBLIGATIONS The Bonds shall not be designated as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. CONTINUING DISCLOSURE In order to assist the Underwriter (Syndicate Manager) in complying with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 the City will enter into an undertaking for the benefit of the holders of the Bonds. A description of the details and terms of the undertaking is set forth in Appendix D of the Preliminary Official Statement. E-4 577 NEW ISSUE PRICING The winning bidder will be required to provide, in a timely manner, certain information necessary to compute the yield on the Bonds pur suant to the provisions of the Internal Revenue Code of 1986, as amended, and to provide a certificate, the form of which will be provided by Bond Counsel upon request. (a)The winning bidder shall assist the City in establishing the issue price of the Bonds and shal l execute and deliver to the City at closing an "issue price" or similar certificate satisfactory to Bond Counsel setting forth the reasonably expected initial offering price to the public or the sales price or prices of the Bonds, together with the supporting pricing wires or equivalent communications. All actions to be taken by the City under this Terms of Proposal to establish the issue price of the Bonds may be taken on behalf of the City by the City's municipal advisor identified herein and any notice or report to be provided to the City may be provided to the City's municipal advisor. (b)The City intends that the provisions of Treasury Regulation Section 1.148-1(f)(3)(i) (defining "competitive sale" for purposes of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the "competitive sale requirements") because: (1)The City shall disseminate this Terms of Proposal to potential underwriters in a manner that is reasonably designed to reach potential investors; (2)all bidders shall have an equal opportunity to bid; (3)the City may receive proposals from at least three underwriters of municipal bonds who have established industry reputations for underwriting new issuances of municipal bonds; and (4)the City anticipates awarding the sale of the Bonds to the bidder who submits a firm offer to purchase the Bonds at the highest price (or lowest interest cost), as set forth in this Terms of Proposal. Any proposal submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of the Bonds, as speci fied in this proposal. (c)If all of the requirements of a "competitive sale" are not satisfied, the City shall advise the winning bidder of such fact prior to the time of award of the sale of the Bonds to the winning bidder. In such event, any proposal submitted will not be subject to cancellation or withdrawal and the City agrees to use the rule selected by the winning bidder on its proposal form to determine the issue price for the Bonds. On its proposal form, each bidder must select one of the following two rules for determining the issue price of the Bonds: (1) the first price at which 10% of a maturity of the Bonds (the "10% test") is sold to the public as the issue price of that maturity or (2) the initial offering price to the public as of the sale date as the issue price of each maturity of the Bonds (the "hold-the-offering-price rule"). (d)If all of the requirements of a "competitive sale" are not satisfied and the winning bidder selects the hold-the- offering-price rule, the winning bidder shall (i) confirm that the underwriters have offered or will offer the Bonds to the public on or before the date of award at the offering price or prices (the "initial offering price"), or at the corresponding yield or yields, set forth in the proposal submitted by the winning bidder and (ii) agree, on behalf of the underwriters participating in the purchase of the Bonds, that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the hold-the-offering-price rule shall apply to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following: (1) the close of the fifth (5th) business day after the sale date; or E-5 578 (2) the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The winning bidder will advise the City promptly after the close of the fifth (5th) business day after the sale whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The City acknowledges that in making the representation set forth above, the winning bidder will rely on: (i) the agreement of each underwriter to comply with requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in an agreement among underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event that an underwriter or dealer who is a member of the selling group is a party to a third-party distribution agreement that was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The City further acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the requirements for establishing issue price rule of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the- offering-price rule as applicable to the Bonds. (e) If all of the requirements of a "competitive sale" are not satisfied and the winning bidder selects the 10% test, the winning bidder agrees to promptly report to the City, Bond Counsel and Ehlers the prices at which the Bonds have been sold to the public. That reporting obligation shall continue, whether or not the closing date of the Bonds (the "Closing Date") has occurred, until either (i) all Bonds of that maturity have been sold or (ii) the 10% test has been satisfied as to each maturity of the Bonds, provided that, the winning bidder's reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon r equest of the City or bond counsel . (f)By submitting a proposal, each bi dder confirms that: (i) any agreement among underwriters, any selling group agreement and each third-party distribution agreement (to which the bidder is a party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is party to such third-party distribution agreement, as applicable, to: (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred until either all securities of that maturity allocated to it have been sold or it is notified by the winning bidder that either the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonabl e periodic intervals or otherwise upon request of the City or bond counsel. E-6 579 (B) comply with the hold-the-offering-price rule, if applicable, in each case if and for so long as directed by the winning bidder and as set forth in the related pricing wires, and (ii) any agreement among underwriters or selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer who is a member of the selling group and each broker dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to: (A) to promptly notify the winning bidder of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as def ined below), and (B) to acknowledge that, unless otherwise advised by the underwriter, dealer or broker-dealer, the winning bidder shall assume that each order submitted by the underwriter, dealer or broker-dealer is a sale to the public. (g)Sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each term being used as defined below) shall not constitute sales to the public for purposes of this Terms of Proposal. Further, for purposes of this Terms of Proposal: (i)"public" means any person other than an underwriter or a related party, (ii)"underwriter" means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public), (iii)a purchaser of any of the Bonds is a "related party" to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (iv)"sale date" means the date that the Bonds are awarded by the City to the winning bidder. E-7 580 PRELIMINARY OFFICIAL STATEMENT Bidders may obtain a copy of the Preliminary Official Statement relating to the Bonds prior to the proposal opening by request from Ehlers at www.ehlers-inc.com by connecting to the Bond Sal es link. The Underwriter (Syndicate Manager) will be provided with an electronic copy of the Final Official Statement within seven business days of the proposal acceptance. Up to 10 printed copies of the Final Official Statement will be provided upon request. Additional copies of the Final Official Statement will be available at a cost of $10.00 per copy. Information for bidders and proposal forms may be obtained from Ehlers at 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, Telephone (651) 697-8500. By Order of the City Council City of Chanhassen, Minnesota E-8 581 PROPOSAL FORM The City Council June 9, 2025 City of Chanhassen, Minnesota (the "City") RE:$13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A (the "Bonds") DATED:June 26, 2025 For all or none of the above Bonds, in accordance with the Terms of Proposal and terms of the Global Book-Entry System (unless otherwise specified by the Purchaser) as stated in this Official Statement, we will pay you $ __________________ (not less than $13,105,890) plus accrued interest to date of delivery for fully registered Bonds bearing interest rates and maturing in the stated years as follows: % due 2028 The City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000. All Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. A good faith deposit ("Deposit") in the amount of $263,700 shall be made by the winning bidder by wire transfer of funds. Such Deposit shall be received by Ehlers no later than two hours after the proposal opening time. Wire transfer instructions will be provided to the winning bidder by Ehlers after the tabulation of proposals. The City reserves the right to award the Bonds to a winning bidder whose wire transfer is initiated but not received by such time provided that such winning bidder's federal wire reference number has been received by such time. In the event the Deposit is not received as provided above, the City may award the Bonds to the bidder submitting the next best proposal provided such bidder agrees to such award. The Deposit will be retained by the City as liquidated damages if the proposal is accepted and the Purchaser fails to comply therewith. We agree to the conditions and duties of Ehlers and Associates, Inc., as escrow holder of the Deposit, pursuant to the Terms of Proposal. The Deposit will be deducted from the purchase price at the closing for the Bonds. This proposal is for prompt acceptance and is conditional upon delivery of said Bonds to The Depository Trust Company, New York, New York, in accordance with the Terms of Proposal. Delivery is anticipated to be on or about June 26, 2025. This proposal is subject to the City's agreement to enter into a written undertaking to provide continuing disclosure under Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 as described in the Preliminary Official Statement for the Bonds. We have received and reviewed the Official Statement, and any addenda thereto, and have submitted our requests for additional information or corrections to the Final Official Statement. As Underwriter (Syndicate Manager), we agree to provide the City with the reoffering price of the Bonds within 24 hours of the proposal acceptance. This proposal is a firm offer for the purchase of the Bonds identified in the Terms of Proposal, on the terms set forth in this proposal form and the Terms of Proposal, and is not subject to any conditions, except as permitted by the Terms of Proposal. By submitting this proposal, we confirm that we are an underwriter and have an established industry reputation for underwriting new issuances of municipal bonds YES: ____ NO: ____. If the competitive sale requirements are not met, we elect to use either the: _____10% test, or the _____hold-the-offering-price rule to determine the issue price of the Bonds. Account Manager:By: Account Members: Award will be on a true interest cost basis. According to our computations (the correct computation being controlling in the award), the total dollar interest cost (including any discount or less any premium) computed from June 26, 2025 of the above proposal is $_______________and the true interest cost (TIC) is __________%. The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Chanhassen, Minnesota, on June 9, 2025. By:By: Title:Title: 582 583 584 585 586 • • 587 588 City of Chanhassen, Minnesota $13,185,000 GO Temporary Sales Tax Revenue Bonds, Series 2025A Assumes Current Market Non-BQ "AAA" Rates plus 35bps Sources & Uses Dated 04/17/2025 | Delivered 04/17/2025 Sources Of Funds Par Amount of Bonds $13,185,000.00 Total Sources $13,185,000.00 Uses Of Funds Total Underwriter's Discount (0.600%)79,110.00 Costs of Issuance 102,000.00 Deposit to Project Construction Fund 13,000,000.00 Rounding Amount 3,890.00 Total Uses $13,185,000.00 Series 2025A GO Temp Sale | SINGLE PURPOSE | 2/18/2025 | 8:30 AM 589 City of Chanhassen, Minnesota $13,185,000 GO Temporary Sales Tax Revenue Bonds, Series 2025A Assumes Current Market Non-BQ "AAA" Rates plus 35bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 04/17/2025 ----- 02/01/2026 --317,245.75 317,245.75 317,245.75 08/01/2026 --201,071.25 201,071.25 - 02/01/2027 --201,071.25 201,071.25 402,142.50 08/01/2027 --201,071.25 201,071.25 - 02/01/2028 13,185,000.00 3.050%201,071.25 13,386,071.25 13,587,142.50 Total $13,185,000.00 -$1,121,530.75 $14,306,530.75 - Yield Statistics Bond Year Dollars $36,771.50 Average Life 2.789 Years Average Coupon 3.0500000% Net Interest Cost (NIC)3.2651394% True Interest Cost (TIC)3.2726788% Bond Yield for Arbitrage Purposes 3.0461139% All Inclusive Cost (AIC)3.5672414% IRS Form 8038 Net Interest Cost 3.0500000% Weighted Average Maturity 2.789 Years Series 2025A GO Temp Sale | SINGLE PURPOSE | 2/18/2025 | 8:30 AM 590 Research Update: Chanhassen, MN's Series 2025A GO Temporary Sales Tax Revenue Bonds Assigned 'SP-1+' Rating . June 4, 2025 Overview •S&P Global Ratings assigned its 'SP-1+' rating to Chanhassen, Minn.'s anticipated $13.2 million series 2025A general obligation (GO) temporary sales tax revenue bonds. •S&P Global Ratings affirmed its 'AAA' rating on the city's GO bonds outstanding. •The outlook is stable. •The 'AAA' rating reflects the application of our "Methodology For Rating U.S. Governments," published Sept. 9, 2024, on RatingsDirect. Rationale Security The 'SP-1+' rating reflects our view of the city's low market risk profile given its legal authority to issue takeout debt and its strong record of timely market disclosure. The city's full faith and credit and unlimited tax GO pledge secures its GO bonds. While certain issuances are additionally secured by utility revenues, we rate the GO bonds to the GO pledge. The city will use series 2025A GO bond proceeds to purchase land and pay design costs for its community center project. The city plans to refinance the temporary bonds with long-term bonds prior to final maturity. Credit highlights The AAA rating reflects Chanhassen's very high incomes, strong performance supported by a largely predictable and growing operating revenue mix and prudent financial planning, and available reserves we expect will remain very strong despite near-term plans to spend them down. The city's rising debt burden serves as its primary offsetting credit factor, but factors including the new 0.5% sales tax to support the community center project mitigate pressure from rising debt. Primary contact Andrew Bredeson Englewood 1-303-721-4825 andrew.bredeson @spglobal.com Secondary contact Jessica Olejak Chicago 1-312-233-7068 jessica.olejak @spglobal.com www.spglobal.com/ratingsdirect June 4, 2025 1 591 Chanhassen is in Carver County but adjacent to Hennepin County. This explains the weaker gross county product per capita, which itself understates Chanhassen's economic strength, as a high-income and primarily residential Twin Cities suburb. The city continues to experience residential and some commercial development. This, plus ongoing appreciation of existing properties, supports strong operating performance through revenue growth, as property taxes account for nearly three-fourths (72% of fiscal 2024) of the city's general fund revenue. City voters approved a 0.5% local option sales tax that took effect in April 2025. The city estimates this will generate $1.9 million initially, with all proceeds applied to the community center project and related debt. At the beginning stages of a period of higher capital investment, with large projects underway including the new community center and civic campus projects, the city is annually updating a 10-year forecast that includes larger planned annual levy increases through fiscal 2030 to maintain operating balance. An unusually strong general fund surplus for fiscal 2024 partly reflected the transfer in of remaining American Rescue Plan Act funds used for public safety. The city plans to spend down some of the resultant fund balance increase--up to $3.8 million-- to fund capital projects in the next few years. Even with the potential spenddown, we expect the available fund balance will remain above the city's fund balance policy, which sets a minimum target as 50% of the next year's budgeted property tax and state aid revenue. Key credit factors include the following credit factors: •The city's incomes are very high, with a growing, primarily residential, and diverse tax base. •Operating performance has been consistently positive in recent years, with an annually updated 10-year financial forecast focused on maintaining structural balance as the city absorbs rising operating and capital costs. With the aid of its long-term planning, we expect the city will maintain available reserves above the minimum level set by its fund balance policy. •Budgeting and planning practices are prudent, with quarterly budget-to-actual and treasury reports to council, with a long-term capital plan and a 10-year operating forecast, both annually updated. The city has adopted debt, investment, and reserve policies, and it has a multifaceted approach to mitigating cyber risk. •The city's debt burden rising, with plans to issue an additional $82 million in debt over the next few years, including about $10 million to finish the civic campus project and another roughly $72 million for the community center project. Although it is rising on a per capita basis, the city's debt will remain low relative to its tax base, and the new sales tax will limit pressure from rising carrying costs. •Pension obligations are well funded, with limited pressure as pension and other postemployment benefits obligations are small on a per capita basis and annual costs are manageable. •For more information on our institutional framework assessment for Minnesota cities, see "Institutional Framework Assessment: Minnesota Local Governments," published Sept. 10, 2024. Environmental, social, and governance We have analyzed the city's environmental, social, and governance factors and consider them credit neutral. www.spglobal.com/ratingsdirect June 4, 2025 2 Chanhassen, MN's Series 2025A GO Temporary Sales Tax Revenue Bonds Assigned 'SP-1+' Rating 592 Rating above the sovereign Chanhassen's GO bonds are eligible to be rated above the sovereign because we think the city can maintain better credit characteristics than the nation in a stress scenario. Under our criteria, titled "Ratings Above The Sovereign--Corporate And Government Ratings: Methodology And Assumptions," published Nov. 19, 2013, U.S. local governments are considered to have moderate sensitivity to national risk. The institutional framework in the U.S. is predictable for local governments, allowing them significant autonomy, independent treasury management, and no history of government intervention. In our opinion, very strong budgetary flexibility and liquidity demonstrate Chanhassen's financial flexibility. Outlook The stable outlook reflects our expectation that Chanhassen will successfully absorb its rising debt burden without materially drawing down reserves or pressuring governmental funds as carrying costs rise, due to significant new sales tax revenue used to pay debt service and planned significant annual property tax levy increases through fiscal 2030. Downside scenario If higher-than-anticipated construction costs or other factors lead to substantial additional unplanned debt issuance and/or drawdown in available reserves, we could lower the rating. . Chanhassen, Minnesota--credit summary Institutional framework (IF)1 Individual credit profile (ICP)1.60 Economy 1.5 Financial performance 1 Reserves and liquidity 1 Management 1.00 Debt and liabilities 3.50 . Chanhassen, Minnesota--key credit metrics Most recent 2024 2023 2022 Economy Real GCP per capita % of U.S. 81 -- 81 83 County PCPI % of U.S. 134 -- 134 134 Market value ($000s) 6,661,743 6,661,743 6,386,564 5,658,588 Market value per capita ($) 253,144 253,144 242,687 206,420 Top 10 taxpayers % of taxable value 7.9 7.9 6.3 6.7 County unemployment rate (%) 2.7 2.6 2.4 2.1 Local median household EBI % of U.S. 159 -- 159 168 Local per capita EBI % of U.S. 167 -- 167 175 Local population 26,316 -- 26,316 27,413 Financial performance Operating fund revenues ($000s) -- 16,348 14,577 13,131 www.spglobal.com/ratingsdirect June 4, 2025 3 Chanhassen, MN's Series 2025A GO Temporary Sales Tax Revenue Bonds Assigned 'SP-1+' Rating 593 Chanhassen, Minnesota--key credit metrics Most recent 2024 2023 2022 Economy Operating fund expenditures ($000s) -- 14,834 14,088 12,658 Net transfers and other adjustments ($000s) -- 1,737 10 (90) Operating result ($000s) -- 3,251 499 383 Operating result % of revenues -- 19.9 3.4 2.9 Operating result three-year average % -- 8.7 5.3 7.9 Reserves and liquidity Available reserves % of operating revenues -- 73.3 60.4 63.1 Available reserves ($000s) -- 11,988 8,809 8,281 Debt and liabilities Debt service cost % of revenues -- 3.1 3.4 2.9 Net direct debt per capita ($) 2,303 1,788 946 976 Net direct debt ($000s) 60,619 47,065 24,904 26,742 Direct debt 10-year amortization (%) 54 40 -- -- Pension and OPEB cost % of revenues -- 2.0 3.0 3.0 NPLs per capita ($) -- 141 207 315 Combined NPLs ($000s) -- 3,700 5,454 8,622 Financial data may reflect analytical adjustments and are sourced from issuer audit reports or other annual disclosures. Economic data is generally sourced from S&P Global Market Intelligence, the Bureau of Labor Statistics, Claritas, and issuer audits and other disclosures. Local population is sourced from Claritas. Claritas estimates are point in time and not meant to show year-over-year trends. GCP--Gross county product. PCPI--Per capita personal income. EBI--Effective buying income. OPEB--Other postemployment benefits. NPLs--Net pension liabilities. . Ratings List New Issue Ratings US$13.185 mil GO temp sales tax rev bnds ser 2025A due 02/01/2028 Short Term Rating SP-1+ New Rating Local Government Chanhassen, MN Unlimited Tax General obligation and .5% sales tax revenues SP-1+ Ratings Affirmed Local Government Chanhassen MN Unlimited Tax & Revenues AAA/Stable Chanhassen, MN Unlimited Tax General Obligation AAA/Stable Chanhassen, MN Unlimited Tax General Obligation and Water System AAA/Stable . The ratings appearing below the new issues represent an aggregation of debt issues (ASID) associated with related maturities. The maturities similarly reflect our opinion about the creditworthiness of the U.S. Public Finance obligor's legal pledge for payment of the financial obligation. Nevertheless, these maturities may have different credit ratings than the rating presented next to the ASID depending on whether or not additional legal pledge(s) support the specific maturity's payment obligation, such as credit enhancement, as a result of defeasance, or other factors. . www.spglobal.com/ratingsdirect June 4, 2025 4 Chanhassen, MN's Series 2025A GO Temporary Sales Tax Revenue Bonds Assigned 'SP-1+' Rating 594 Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. 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All rights reserved. 596 June 9, 2025 SALE DAY REPORT FOR: City of Chanhassen, Minnesota $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A Prepared by: Ehlers 3060 Centre Pointe Drive Roseville, MN 55113 Nick Anhut, Senior Municipal Advisor Keith Dahl, Municipal Advisor BUILDING COMMUNITIES. IT’S WHAT WE DO. 597 Sale Day Report for City of Chanhassen, Minnesota 1 Competitive Sale Results PURPOSE: To provide temporary financing to facilitate the initial land acquisition and design costs for the City's community center project (the "Project") as authorized by the Special Legislation. RATING: S&P Global Ratings "SP1+" / “AAA” with Stable outlook affirmed NUMBER OF BIDS: 2 LOW BIDDER: Piper Sandler & Co., Minneapolis, Minnesota COMPARISON FROM LOWEST TO HIGHEST BID: (TIC as bid) LOW BID:* 3.2002% HIGH BID: 3.7430% Summary of Sale Results: Principal Amount*: $13,185,000 Underwriter’s Discount: $65,661 Costs of Issuance: $95,825 True Interest Cost: 3.2002% Bond Yield: 3.00% Total Net Principal & Interest: $14,212,331 NOTES: Bond Trust Services Corporation, Roseville, Minnesota will serve as Paying Agent on the Bonds The Bonds maturing February 1, 2028 are callable August 1, 2026 or any date thereafter CLOSING DATE: June 26, 2025 CITY COUNCIL ACTION: Consider a resolution awarding the sale of $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A SUPPLEMENTARY ATTACHMENTS • Bid Tabulation • Sources and Uses of Funds • Final Debt Service Schedule 598 BID TABULATION $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A City of Chanhassen, Minnesota SALE: June 9, 2025 AWARD: PIPER SANDLER & CO. Rating: S&P Global Ratings "SP1+" /Stable Tax Exempt - Non-Bank Qualified NAME OF INSTITUTION MATURITY (February 1) COUPON RATE REOFFERING YIELD PRICE TRUE INTEREST RATE PIPER SANDLER & CO. $13,119,338.70 3.2002% Minneapolis, Minnesota 2028 3.000% 3.000% BAIRD 3.7430% Milwaukee, Wisconsin 599 City of Chanhassen, Minnesota $13,185,000 GO Temporary Sales Tax Revenue Bonds, Series 2025A Sources & Uses Dated 06/26/2025 | Delivered 06/26/2025 Sources Of Funds Par Amount of Bonds $13,185,000.00 Total Sources $13,185,000.00 Uses Of Funds Total Underwriter's Discount (0.498%)65,661.30 Costs of Issuance 95,825.00 Deposit to Project Construction Fund 13,023,513.70 Total Uses $13,185,000.00 Chanhassen2025A GO Temp S | SINGLE PURPOSE | 6/ 9/2025 | 10:45 AM 600 City of Chanhassen, Minnesota $13,185,000 GO Temporary Sales Tax Revenue Bonds, Series 2025A Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 06/26/2025 ----- 02/01/2026 --236,231.25 236,231.25 236,231.25 08/01/2026 --197,775.00 197,775.00 - 02/01/2027 --197,775.00 197,775.00 395,550.00 08/01/2027 --197,775.00 197,775.00 - 02/01/2028 13,185,000.00 3.000%197,775.00 13,382,775.00 13,580,550.00 Total $13,185,000.00 -$1,027,331.25 $14,212,331.25 - Yield Statistics Bond Year Dollars $34,244.38 Average Life 2.597 Years Average Coupon 3.0000000% Net Interest Cost (NIC)3.1917433% True Interest Cost (TIC)3.2002504% Bond Yield for Arbitrage Purposes 2.9989698% All Inclusive Cost (AIC)3.4962059% IRS Form 8038 Net Interest Cost 3.0000000% Weighted Average Maturity 2.597 Years Chanhassen2025A GO Temp S | SINGLE PURPOSE | 6/ 9/2025 | 10:45 AM 601 602 City Council Item June 9, 2025 Item Ordinance XXX: Amending Chapter 1 and Chapter 20 Regulating Detached Accessory Dwelling Units File No.Item No: G.2 Agenda Section GENERAL BUSINESS Prepared By Rachel Jeske, Planner Reviewed By Laurie Hokkanen SUGGESTED ACTION "Motion to adopt the Ordinance Amending Chapter 1 and Chapter 20 and approves the summary ordinance for publication regulating detached accessory dwelling units within the City of Chanhassen." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY The 2024 Community Development Department work plan, as approved by the City Council, included a review of the city's ordinances regulating accessory dwelling units (ADUs). This housing option was included in the work plan based on consistent community interest. It is also being considered, as the city has received 10 variance applications for ADUs since the mid-1980s, all of which have been approved. BACKGROUND At the May 12 City Council meeting, the City Council provided staff direction on zoning districts, including the Agricultural Estate (A-2), Rural Residential (RR), and Residential Single Family (RSF) zoning districts. The City Council generally supported allowing detached ADUs through a Conditional Use Permit (CUP) process in each of those zoning districts. Properties that are zoned RSF must be at 603 least 1.0 acre in size to be eligible. Properties that are zoned RSF and have less than 1.0 acres in total lot area would be required to seek a variance. The City Council also provided feedback to clarify the language, indicating that detached ADUs are not allowed to be rented. The City Council forwarded the draft ordinance to the Planning Commission for consideration and to hold a public hearing. At their May 20 meeting, the Planning Commission recommended approval of the proposed Detached Accessory Dwelling Unit Ordinance as presented. DISCUSSION The Planning Commission and City Council have held discussions on ADUs at the following meetings: July 2, 2024 – Planning Commission Work Session January 27, 2025 – City Council Work Session March 24, 2025 – City Council Work Session April 14, 2025 – City Council Work Session May 6, 2025 – Planning Commission provided recommendation on “Attached and Internal ADUs” May 12, 2025 – City Council adoption of Ordinance for “Attached and Internal ADUs” May 12, 2025 – City Council Work Session for “Detached ADUs” May 20, 2025 – Planning Commission asked to provide recommendation on “Detached ADUs” June 3, 2025 – City Council considers adopting ordinance regulating “Detached ADUs” BUDGET RECOMMENDATION The Planning Commission recommended unanimously that the City Council adopt the attached ordinance amending Chapter 1 and Chapter 20 of Chanhassen City Code regarding the regulation of Detached Accessory Dwelling Units as proposed and approves the Summary Ordinance for publication. ATTACHMENTS Detached ADU Ordinance Summary Ord for Detached ADU Planning Commission Minutes dated May 20, 2025 604 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING CHAPTER 1 AND CHAPTER 20 CHANHASSEN CITY CODE, DEFINING DETACHED ACCESSORY DWELLING UNITS AND REGULATING DETACHED ACCESSORY DWELLING UNITS AS A CONDITIONAL USE IN THE AGRICULTURE, RURAL RESIDENTIAL, AND RESIDENTIAL SINGLE FAMILY ZONING DISTRICTS THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 1-2 of the City Code, City of Chanhassen, Minnesota, is hereby amended to include the following: Section 1-2 Rules of Construction and Definitions Dwelling, Detached Accessory Dwelling Unit, means a residential dwelling unit that is subordinate and clearly incidental to a primary structure, located on the same lot as a single- family dwelling unit, not within the same building as the single-family dwelling unit but which has its own kitchen, bathroom, living, and sleeping area. Section 2. Section 20-574 of the City Code, City of Chanhassen, Minnesota, which regulates the A-2 Agricultural Estate zoning district is hereby amended with subsection (a) to read as follows: (a) Detached Accessory Dwelling Unit (subject to the requirements of section 20-261) Section 3. Section 20-594 of the City Code, City of Chanhassen, Minnesota, which regulates the RR Rural Residential zoning district is hereby amended with subsection (e) to be established and to read as follows: (e) Detached Accessory Dwelling Unit (subject to the requirements of section 20-261) Section 4. Section 20-614 of the City Code, City of Chanhassen, Minnesota, which regulates the RSF Residential Single Family zoning district is hereby amended with subsection (b) to read as follows: (b) Detached Accessory Dwelling Unit (subject to the requirements of section 20-261) Section 5. Section 20-261 of the City Code, City of Chanhassen, Minnesota, is hereby amended to read as follows: Section 20-261 Reserved Detached Accessory Dwelling Units 605 The following conditions will apply to Detached Accessory Dwelling Units: (a) Height - no taller than the principal structure. In the A2 and RR districts, height of Detached Accessory Dwelling Unit may exceed the height of the principal structure if located above a garage but shall not exceed the maximum height restriction of the underlying zoning district. (b) Setbacks - shall meet all principal structure building setbacks required by the underlying zoning district. (c) Size - shall be at least 200 square feet in size but less than 960 square feet in area. (d) Bedrooms - no more than one bedroom. (e) Number of Detached Accessory Dwelling Unit's - no more than one ADU allowed on any one property inclusive of both attached, internal, and detached ADUs. (f) Structure - shall have a permanent foundation with no wheels. (g) Impervious Lot Coverage - Maximum impervious lot coverage standards established by the underlying zoning district shall be adhered to. (h) Owner Occupancy - An owner of the property that includes an accessory dwelling unit that is detached from the principal residential structure must occupy at least one (1) dwelling unit on the zoning lot as their primary place of residence. If an owner is unable or unwilling to fulfill the requirements of this section, the owner shall remove those features of the accessory dwelling unit that make it a dwelling unit. Failure to do so will constitute a violation of this section. (i) Rental – Detached Accessory Dwelling Units may not be used as rental properties, including short-term rentals, as defined by the City Code. (j) Architectural Design - Detached Accessory Dwelling Units shall be generally consistent with the principal structure on the lot as determined by the Community Development Director. (k) Parking - Driveway access. No additional driveway access to a public or private road will be allowed for a Detached Accessory Dwelling Unit. (l) Utilities - Unless otherwise approved by the City Engineer, the Detached Accessory Dwelling Unit shall not have separate public sewer or water utility services from the principal structure. (m)Building, Fire, Property Maintenance Code - Detached Accessory Dwelling Unit shall abide by and follow the Building, Fire, and Property Maintenance code. 606 (n) Screening - Detached Accessory Dwelling Units may require year-round vegetative screening based on review by the City and at the sole discretion of the City Council. (o) Property Size – If the property is zoned Residential Single Family (RSF), that property shall have a minimum lot size of 1.0 acres to be considered through a conditional use permit process. Properties which are zoned as RSF but which do not have a minimum lot size of 1.0 acres may request a variance to allow a detached ADU. Section 6. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this ___day of _____, 2025, by the City Council of the City of Chanhassen, Minnesota ______________________________________________________________ Jenny Potter, City Clerk Elise Ryan, Mayor (Published in the ____________ on ______________________________) 607 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA SUMMARY OF ORDINANCE NO. XXX SUMMARY PUBLICATION OF ORDINANCE XXX AMENDING CHANHASSEN CITY CODE, CHAPTER 1 DEFINITIONS AND CHAPTER 20, ZONING OF THE CHANHASSEN CITY CODE RELATED TO DETACHED ACCESSORY DWELLING UNITS The purpose of these Code amendments are as follows: Amend Section 1-2 to define “Dwelling, Detached Accessory Dwelling Units” as well as Amend Sections 20-574, 20-594, 20-614 to establish them as a conditional use within the A2, RR, and RSF zoning districts and amend section 20-261 establishing performance requirements for detached accessory dwelling units within the City of Chanhassen. This ordinance shall go into effect upon passage of the ordinance by City Council. A printed copy of Ordinance No. ____ is available for inspection by any person during regular office hours at the office of the City Manager/Clerk. PASSED, ADOPTED, AND APPROVED FOR PUBLICATION this 9 day of June, 2025, by the City Council of the City of Chanhassen. (Published in the Sun Sailor on June 19, 2025) 608 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES MAY 20, 2025 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chairman Eric Noyes, Steve Jobe, Jeremy Rosengren, Mike Olmstead, Dave Grover, and Katie Trevena. MEMBERS ABSENT: Ryan Soller. STAFF PRESENT: Rachel Arsenault, Associate Planner; and Rachel Jeske, Planner. PUBLIC PRESENT: Linda Paulsen PUBLIC HEARINGS: 1. ORDINANCE XXX: AMENDING CHAPTER 1 AND CHAPTER 20 DEFINING REGULATING DETACHED ACCESSORY DWELLING UNITS Rachel Jeske, Planner, explained that the City Council created a Planning Commission Community Development Work Plan for 2024. She summarized the list of topics to review and noted that they still needed to review the sign code and the accessory dwelling unit ordinance. She summarized the meetings in which they had talked about accessory dwelling units and noted that they provided a recommendation to the City Council on May 6, 2025. She stated that the City Council had a work session on detached auxiliary dwelling units on May 12, which the Planning Commission would review tonight. Ms. Jeske described the proposed zoning process and noted that they would be permitted in the Agricultural Estate (A-2), Rural Residential (RR), and Residential Single Family (RSF – 1 acre minimum). She said that the conditional use permit would be reviewed by the Planning Commission with a public hearing and that the final decision would be made by the City Council. She said that Conditional Use Permits are generally approved if they can meet City standards outlined in the code, with reasonable conditions added as determined by the City Council. Ms. Jeske said the height of the structure would not be able to be bigger than the principal structure unless they were located above a garage in the A-2 and RR districts. The detached ADUs have to meet the principal structure setbacks required by the underlying zoning district, and they had to be between 200 square feet and 960 square feet. She stated that there could not be more than one bedroom. She stated that there could be no more than one auxiliary dwelling unit allowed, both inclusive of attached and detached auxiliary units. She stated that the structure 609 Planning Commission Minutes – May 20, 2025 2 must have a permanent foundation with no wheels, must maintain compliance with the underlying zoning district regulation for impervious lot coverage, and the owner must occupy one of either the principal structure or detached auxiliary dwelling units as their primary place of residence. She commented that the detached auxiliary dwelling units could not be used as rental properties, as defined by the City Code. She said that they could be generally consistent with the architectural design of the principal structure, and they could not have additional driveway access. She stated that they should not have separate utility connections unless approved by the City Engineer/Public Works Director. She said that an auxiliary dwelling unit must meet all building, fire, property, and maintenance codes. She said that they may require year-round vegetative screening based on review by the city. She stated that a property zoned RSF must be at least 1.0 acres, but if the property does not meet that requirement, they could request a variance. She reviewed a map showing property sizes across Chanhassen, and she said that only the purple and two blue shades could have a detached auxiliary dwelling unit. Chairman Noyes asked if there was a percentage of the lots in Chanhassen that were zoned RSF and greater than 1.0 acre. Ms. Jeske responded that she did not, but she could look it up. Chairman Noyes asked for the primary reason for reviewing this. He said that there have been ten previous requests that went through a variance process and were approved, so there was not a high historical number of requests. Ms. Jeske answered that the staff receives a lot of inquiries on the topic and stated that in 2024, they received ten inquiries and no applications from interested people. Commissioner Olmstead asked if they could have a separate line for private utilities or if they had to go through the primary residence. Ms. Jeske answered that the assumption was for all utilities to go through the primary residence, but since electricity was not through the city, it would have to be approved by the primary utility company. Commissioner Rosengren asked about the height in section A and the allowance to exceed the height of the principal structure if it was a garage. Ms. Jeske responded that it referred to detached garages, which may be taller than the principal home. Commissioner Rosengren asked if a detached garage with an auxiliary dwelling unit made it a detached auxiliary dwelling unit. Ms. Jeske confirmed this information. Commissioner Jobe asked if the zoning of the height of the garage was set by the RR district. Ms. Jeske answered that in all three of the zoning districts, they all have a maximum structure height of 35 feet. Commissioner Grover asked if a property was sold, and how a buyer would know that they have to live in one of the units. Ms. Jeske responded that the conditional use permit would be recorded with the property, so it would be given to the property owner when they buy the property. Commissioner Rosengren stated that he was confused because, in the last meeting, they were discussing attached auxiliary dwelling units. He said that the language did not allow short-term rentals, but they asked if they could include language about all rentals. He stated that they 610 Planning Commission Minutes – May 20, 2025 3 discussed that the city does not regulate long-term rentals, so he asked how the city would monitor this information. Ms. Jeske answered that if a neighbor complained, they would enforce the code, and the city would follow through with the typical code enforcement process. Commissioner Rosengren clarified that it would be communicated when they got the approval for the auxiliary dwelling unit, and they would enforce it when they found out the information. Commissioner Grover asked if they should have the same language for the attached auxiliary dwelling units. Ms. Jeske answered that the attached auxiliary dwelling unit ordinance had already been approved. She said that the goal was that the conditional use process would be laid out more clearly. Chairman Noyes opened the public hearing. Linda Paulson said that the Planning Commission asked good questions. She asked about the frequency of monitoring of those who live in the unit. She asked what the penalty for abuse of an auxiliary dwelling unit would be for an owner to protect Chanhassen as a whole. She asked if conversion into a man cave would be permitted. She stated that the conditional use permit goes to one acre. She asked what would happen if someone had 0.73 acres and if they would lower that number to less and increase the density. She asked if neighbors within 500 feet would be notified when an auxiliary dwelling unit application was received. She asked how many structures were allowed on one lot, and about the impact of the pervious land percentage. She stated that Chanhassen was all built up, so she expressed concerns about the impact on pervious land and the impact on pollinator decline. She stated that her yard had a lot of milkweed, but if everyone built more buildings, then Chanhassen would be like Minneapolis. She expressed that it would be important to protect land for pollinators. She said that a comment on social media stated that the property taxes should increase on the property since there would be an increase in demand for public services. Chairman Noyes closed the public hearing. Commissioner Noyes asked if there was any process to notify the neighbors about an auxiliary dwelling request. Ms. Jeske answered that there would be a notification for the conditional use permit within either 500 feet or a quarter of a mile. Commissioner Noyes said that there was a defined definition of one bedroom and one bathroom. He asked if someone made a structure into a man cave, it would not necessarily make it an auxiliary dwelling unit. Ms. Jeske responded that the City Council discussed this at length. An auxiliary dwelling unit had to have a full kitchen, bathroom, bedroom, and living space. A full kitchen would have a refrigerator and a stove. Commissioner Trevena asked if there was a complaint and what process the city would take to respond. Ms. Jeske answered that the city did not have a specific process, but they would send a letter and request compliance within a set time. The owner would get three notices, and then it would be settled in court. 611 Planning Commission Minutes – May 20, 2025 4 Commissioner Rosengren voiced concern about the language of prohibiting rentals. He said that a detached auxiliary unit would be more desirable to rent. He asked if the City Council was trying to limit how people used a detached auxiliary dwelling unit, so that would be why they created the language in the ordinance. Ms. Jeske answered that the City Council had a goal that the auxiliary dwelling unit is not rented, but it did not make sense to call out rentals since it would be difficult to enforce the process. She said that the attached auxiliary dwelling unit ordinance line about rentals was changed to match this ordinance. Chairman Noyes said that as proposed the city would take the same stance on rental on any kind of ADU. He said it clearly states that rentals are prohibited. He said that the question was if they wanted to be more strict with this, and if so how they would do it. Commissioner Rosengren said that there was no language in the City Code that did not allow residents to rent the house. Ms. Jeske answered that long-term rentals are allowed, but there was no permitting process with the city. Commissioner Rosengren said that the city was weeding out people who would not break the law. He said that the attached dwelling unit code was modified to match, so they were not differentiating the code. He stated that there was a fear-based approach. He asked what they were trying to prevent. He said he could see the city asking for a careful approach, and if it came up for review later based on interest and community applications, they could do it that way. Chairman Noyes said that there had not been much interest. He said that there were more inquiries, but there was a previous cost associated with the process. He said that the inquiry number and the number of auxiliary dwelling units might go up by a small amount since the process was more clearly defined. Ms. Jeske said that a conditional use permit was more expensive than applying for a variance. Commissioner Jobe asked about the lot size. Ms. Jeske responded that the auxiliary dwelling unit was limited to 960 square feet. Commissioner Omstead asked about the motivation of those who inquired. Ms. Jeske answered that most of it was people looking for parents or a caretaker to stay. Commissioner Jobe moved, Commissioner Olmstead seconded that the Chanhassen Planning Commission motions to recommend the City Council adopt the ordinance amending Chapter 1 and Chapter 20 regulating Detached Accessory Dwelling Units as presented. All voted in favor and the motion carried unanimously with a vote of 6 to 0. GENERAL BUSINESS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED MAY 6, 2025 612 Planning Commission Minutes – May 20, 2025 5 Commissioner Trevena moved, Commissioner Rosengren seconded to approve the Chanhassen Planning Commission summary minutes dated May 6, 2025, as presented. All voted in favor, and the motion carried unanimously with a vote of 6 to 0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: Rachel Jeske, Planner, stated that they received two applications last Friday. One application was for the final plat for Pioneer Ridge which will go directly to the City Council. Additionally, the city received an application for site plan with variances for a project called Eden Springs, which would be a memory care residential development. CORRESPONDENCE DISCUSSION: OPEN DISCUSSION: None. ADJOURNMENT: Commissioner Olmstead moved, Commissioner Trevena seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 6:29 p.m. Submitted by Eric Maass Community Development Director 613