City of Winona, Minnesota206.230.106.10/weblink/0/edoc/441925/2019...Cole, Thomas Moran, Robert Duncanson, Georgia O’Keeffe and Mary Cassatt. (The MMAM continued to experience visitor

City of Winona, Minnesota Comprehensive Annual Financial Report for the Year Ended December 31, 2019

Prepared by Finance Department: Mary B. Burrichter

Director of Finance

Cover design by Tom Grier, Professor of Mass Communication at Winona State University The cover photograph of Winona shows the fall colors surrounding the walking path around East Lake Winona by Kari Yearous

TABLE OF CONTENTS

AND SECTION I

INTRODUCTORY SECTION

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CITY OF WINONA, MINNESOTA

COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENTS

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I. INTRODUCTORY SECTION (Unaudited) Letter of Transmittal 1–12 Certificate of Achievement for Excellence in Financial Reporting 13 Organizational Chart 14 City Leaders 15 II. FINANCIAL SECTION Independent Auditors’ Report 17–18 Management’s Discussion and Analysis (Unaudited) 19–29 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 31 Statement of Activities 32 Fund Financial Statements: Balance Sheet—Governmental Funds 34–35 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 36 Statement of Revenues, Expenditures, and Changes in Fund Balances—Governmental Funds 38-39 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 40 Budgetary Comparison Statement—General Fund 41 Statement of Net Position—Proprietary Funds 42–43 Statement of Revenues, Expenses, and Changes in Net Position—Proprietary Funds 44–45 Statement of Cash Flows—Proprietary Funds 46–47 Statement of Fiduciary Net Position Custodial Fund—Tourism Promotion 48 Statement of Changes in Fiduciary Net Position Custodial Fund—Tourism Promotion 49 Notes to Basic Financial Statements 51–91 Required Supplementary Information: Schedule of Contributions—Public Employees General Employees Retirement Fund 93 Schedule of Proportionate Share Of Net Pension Liability— Public Employees General Employees Retirement Fund 94 Schedule of Contributions— Public Employees Police And Fire Fund 95 Schedule of Proportionate Share Of Net Pension Liability—Public Employees Police And Fire Fund 96 Schedule of Changes in OPEB Liability And Related Ratios 97 Other Supplementary Information: Nonmajor Funds 99–101 Combining Balance Sheet—Nonmajor Governmental Funds 102–107 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances—Nonmajor Governmental Funds 108–113

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Internal Service Funds 115 Internal Service Funds—Combining Statement of Net Position 116–117 Internal Service Funds—Combining Statement of Revenues, Expenses, and Changes in Net Position 118–119 Internal Service Funds—Combining Statement of Cash Flows 120–121 General Fund—Schedule of Revenues—Budget and Actual 122–123 General Fund—Schedule of Expenditures—Budget and Actual 124–128 Schedule of Revenues, Expenditures, and Changes in Fund Balance— Budget and Actual—Senior Advocacy Program 129 Schedule of Revenues, Expenditures, and Changes in Fund Balance— Budget and Actual—Municipal State Aid Fund 130 Schedule of Revenues, Expenditures, and Changes in Fund Balance— Budget and Actual—Dike Construction Fund 131 Schedule of Revenues, Expenditures, and Changes in Fund Balance— Budget and Actual—Permanent Improvement Revolving Construction Fund 132 Schedule of Long-Term Obligations—Primary Government 133 Schedule of Bonds Payable—Primary Government 134–137 Schedule of Other Debt—Primary Government 138–139 Schedule of Long-Term Obligations—Port Authority of Winona, Minnesota 140 Schedule of Bonds Payable—Port Authority of Winona, Minnesota 142–143 Schedule of Salaries, Employee Benefits, and Clothing Allowance 144–145 Schedule of Expenditures of Federal Awards 146 Reconciliation of Schedule of Expenditures of Federal Awards to Comprehensive Annual Financial Report 147 III. STATISTICAL SECTION (Unaudited) Statistical Section—Contents and Tables 149 Government-Wide Net Position by Component 150–151 Changes in Net Position—Governmental Activities 152–153 Changes in Net Position—Governmental Activities—Percentage of Total 154–155 Changes in Net Position—Business-Type Activities 156–157 Changes in Net Position—Total 158–159 Fund Balances—Governmental Funds 160–161 General Governmental Revenues by Source 162–163 Tax Revenues by Source—Governmental Funds 164 General Governmental Expenditures by Function 166–167 General Governmental Current Expenditures by Function 168–169 Summary of Changes in Fund Balances—Governmental Funds 170–171 Estimated Actual Value of Property and Tax Capacity by Property Type 172–173 Direct and Overlapping Property Tax Rates 174 Property Tax Levies and Collections 175 Principal Property Taxpayers 176 Ratios of Total Debt Outstanding by Type 178–179 Ratios of Net General Bonded Debt Outstanding 180–181 Ratios of Net General Bonded Debt to Market Value and Net Bonded Debt per Capita 182–183 Direct and Overlapping Governmental Activities Debt 184 Legal Debt Margin 186–187 Pledged Revenue Bond Coverage 188 Demographic and Economic Factors 189 Principal Employers 190 Property Values and Construction 191 City Employees by Function/Program 192–193 Operating Statistics by Function/Program 194–195 Capital Asset and Infrastructure Statistics and Infrastructure Statistics by Function/Program 196–197

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May 18, 2020

Honorable Mayor Peterson and Members of the City Council of the City of Winona Winona, MN 55987

Dear Mayor Peterson and City Council Members:

The Comprehensive Annual Financial Report (CAFR) of the City of Winona, MN (the “City”), for the fiscal year ended December 31, 2019, is submitted herewith. Responsibility for the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the City. The Finance Department believes that the data presented is accurate in all material respects and is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of the various funds. All disclosures necessary for a reader to gain an understanding of the City’s financial activities have been included.

An outline to guide the reader of the CAFR is as follows:

1. Introductory Section—Includes this letter of transmittal, a list of the City’s leaders, an organization chart, and a reproduction of the City’s Certificate of Achievement for Excellence in Financial Reporting.

2. Financial Section—Includes the report of our independent auditors, Management’s Discussion and Analysis (MD&A), and the basic financial statements. The combining fund financial statements are presented after the basic financial statements.

3. Statistical Section—Includes selected financial, economic, and demographic information, generally presented on a 10-year historical basis.

The organization, form, and content of this report were prepared in accordance with the standards prescribed by the Governmental Accounting Standards Board (GASB), the Government Finance Officers Association of the United States and Canada (GFOA), the American Institute of Certified Public Accountants, the State Auditor’s Office—State of Minnesota, and the City Charter.

Profile of the City:

This report includes all funds and departments of the City (the primary government) and the Port Authority of Winona (“Port Authority”) (the component unit) according to GASB’s requirements. A component unit is included in the City’s reporting entity because of the significance of its operational or financial relationship with the City. Note 1 to the basic financial statements includes additional information regarding the reporting of the component unit.

The Honorable Mayor and Members of the City Council City of Winona May 18, 2020

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The activities of the Housing and Redevelopment Authority of Winona (HRA) are limited to operating Department of Housing and Urban Development-sponsored projects and grants. No local financing is involved; thus, the City Council is not involved in financial oversight. Additionally, other than an irrevocable appointment by the Mayor of the HRA Board (four-year term and only one out of five HRA Board Members are from the City Council), the City exercises no control in the areas of budgeting, staff appointment, or accountability for fiscal matters. Accordingly, based on GASB Statement No. 61, The Financial Reporting Entity: Omnibus; an amendment of GASB Statements No.14 and No. 34, the HRA does not qualify as a component unit of the City’s financial statements, and the related financial statements have not been included in this report. Audited financial statements for the HRA are available upon request at its business office in Winona.

The City provides the full range of municipal services requested by statute or charter. This includes public safety (police and fire), highways and streets, sanitation, parks, public improvements, planning and zoning, and general administrative services. The City also operates eight enterprises: water; sanitary sewer; inspections; airport; public transportation; recreation, library; and storm sewer.

Local Economy:

Winona, incorporated in 1857, is located in the southeastern corner of Minnesota, two hours south of the Minneapolis/Saint Paul area and one hour east of Rochester. It is positioned along the banks of the Mississippi River and is surrounded by gently sloping hills. It is known for its natural beauty throughout the year but especially during the season of autumn. The City is the headquarters for the Upper Mississippi River National Wildlife and Fish Refuge and is the county seat of Winona County.

Besides its natural beauty, the City is noted for its many strengths. Some of those strengths are listed below:

Winona’s highly diversified tax base that experienced an increase in its market value of 15.4% from 2010 to 2020;

Stable financial operations (including financial management, cash flow dollars, and reserves for future capital needs);

Low debt burden with rapid principal amortization (at December 31, 2019, 100% of General Obligation debt retired in 10 years) and significant nonproperty tax levy support for debt service;

An “entrepreneurial spirit” for start-up companies;

An independent, community-managed healthcare system, including emergency room services. The community also sponsors extensive programs for people with disabilities;

A “regional center” for southeastern Minnesota (for education, employment, entertainment, visual and performing arts and shopping);

Three colleges located in the City (two universities and one technical college)—the three in total have an enrollment of over 8,000 students;

Well-capitalized banks – most are locally owned;

An arts/tourism base that continues to grow with attractions such as the Minnesota Beethoven Festival that has featured Joshua Bell, Yo-Yo Ma, Branford Marsalis and James Galway, the Shakespeare


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Festival, and the Minnesota Marine Art Museum (MMAM). The MMAM features original Impressionist, American and Hudson River School paintings by artists such as Vincent van Gogh, Claude Monet, Édouard Manet, Edgar Degas, Paul Gauguin, Joseph Mallord William Turner, Paul Cézanne, Pablo Picasso, Henri Matisse, Emanuel Leutze, Max Beckmann, Edward Hopper, Thomas Cole, Thomas Moran, Robert Duncanson, Georgia O’Keeffe and Mary Cassatt. (The MMAM continued to experience visitor growth in 2019.)

Located in the scenic Mississippi River valley.

Some of the challenges that the City faces are listed below:

Available (and developable) land for the City to continue to grow;

Infrastructure—maintenance costs (the City is 163 years old);

City government financial dependency on state-provided local government aid;

Transportation needs for improvements and maintenance.

Other key objectives of the City:

To encourage and support the expansion of existing businesses, and to cultivate the development of new businesses that want to make the City of Winona their home;

To attract citizens that are interested in the overall good of the City (‘big-picture’ vision) to serve as Board Members for the City Council, Port Authority, and other City commissions;

To attract smart, forward-thinking employees who have the overall best interests of the City in mind;

To continue to serve as an economic engine for our region in the State of Minnesota.

A community profile of the City’s business and industrial diversity is highlighted below:

Electronic Company (customers): Benchmark (original equipment manufacturer users of circuit boards)—located in the Winona regional area

Company (customers): Watlow Controls (construction industry) Products: electronic design, contract manufacturer of mechanical and electronic components, and process control instruments;

Company (customers): BCS Automotive Solutions (major auto manufacturer);

Distribution Company: Fastenal National and international distributor of threaded fasteners and other industrial maintenance and construction supplies (founded in Winona in 1967, Fastenal’s sales in 2019 were $5.334 billion, a member of the S&P 500, Fastenal’s current market capitalization is about $21 billion);


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Composites Company (customers): Cytec Solvay Group (aero and computer industries) Previously: Fiberite Inc. Products: manufacturer of thermosets and molding compounds;

Company: RTP Company Compounder of raw material for the composite industry, founded in Winona;

Company (customers): WE-NO-NAH Canoe (Olympic teams and recreational users) Leading worldwide manufacturer of composite canoes and kayaks and large producer of Royalex-type canoes, founded in Winona;

Company: PlastiComp Innovations in long-fiber thermoplastic molding, founded in Winona;

Company (customers): Coda (Juilliard School of Music) Maker of musical bows with graphite-fiber construction, which produce fine sound and quality performance, and will not fatigue or warp;

Bulk Commodities Transport Commercial Harbor: Transportation network (via the barge system on the river) of regionally grown corn and soybeans from the City, and fertilizer, coal, salt into the City and sand for the energy industry. (Most of the corn and soybeans from this Harbor are exported to Asia.);

Agricultural Products Company (customers): Malteurop North America (malting facility—beer/whiskey exports) Product: manufacturer of malt for the brewing of beer and the distilling of whiskey;

Company (customers): Bay State Milling Co. (commercial bakeries) Product: maker of whole wheat, rye, and commercial bakery flour;

Company (customers): Gypsoil (Beneficial Reuse Management) Product: manufacturer of a gypsum product used as a soil amendment;

Education Two universities and a technical college within the City, which have a combined enrollment of over 8,000 students. International Residency High School Other private and public schools (including two charter schools in District 861);

Healthcare Company: Winona Health Provides a general medical and surgical hospital, options for assisted living and nursing home care; and Winona Clinic, which offers regional diversified healthcare services;

Company: Gundersen Health System – Winona Campus Opened in 2019 and offers urgent care, lab and infusion services.


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Promotional Materials Company: WIN CRAFT Inc. Major supplier to the Olympics, NASCAR, NFL, and Major League Baseball Product: manufacturer and distributor of promotional material, founded in Winona;

Telecommunications Company: Hiawatha Broadband Communications, Inc. Product: a provider of broadband internet, cable television, and telephone services within the Southeastern Minnesota area, founded in Winona;

Company: Spectrum - Charter Communications Product: a provider of internet and cable television services;

Music Company: Hal Leonard Publishing (founded in Winona, Minnesota) Product: largest manufacturer of printed music—internationally distributed;

Stained Glass Stained glass business Customers include the Vatican Chapel in Jerusalem and Radio City Music Hall in New York City Products: studio that manufactures, designs, and restores stained glass;

Equipment Manufacturer Company: Thern, Inc. (founded in Winona) Product: manufacturer of material handling equipment such as winches, hoists and cranes with emphasis on niche market products. (Thern Inc. custom makes the winch to hold and lower the world-famous New York City Times Square ball that is dropped on New Year’s Eve.);

Company: Peerless Industrial Group (founded in Winona, 1917) Largest producer of welded and weld-less chain in the U.S.A.;

Rail Products Company: Miller Ingenuity (changed name from Miller Felpax) founded in Winona Product: designer and manufacturer of rolling stock products (rail) used in over 100 countries for 50 years. They were the original inventor and OEM of traction motor lubricators and gear case seals for the companies of GE and EMD;

Knitwear Company: Knitcraft Corporation (founded in and located in the Winona regional area) Product: manufacturer of knitwear (“St. Croix” brand—international);

Manufacturer Company: J.R. Watkins (started in 1868 in Plainview, Minnesota and moved to Winona) First introduced the “Trial-Mark Bottle” and America’s first money-back guarantee in 1869 Product: Manufacturer of spices (winner of gold medals for its Vanilla Extract, Cinnamon and Black Pepper) and natural products;

Company: Pet Health People, LLC (Midwest Co-Pack) Product: Manufacturer of gummy vitamins for dogs.


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Major Initiatives:

Current Projects—2019 Highlights:

City property values increased, during 2019, through the issuance of $83,324,900 in building permits, (109 nonresidential permits for a value of $73,975,522 and 455 residential permits for a value of $9,349,378) which includes the list below:

Gundersen Health System – Remodeled Kmart into a medical clinic ($18,228,091) Main Square Development – Construction of residential and commercial building in downtown

Winona and a build-out for Winona Health ($18,190,000) Winona Health – Construction of a new YMCA on campus ($17,328,473) Saint Martin’s Lutheran Church – Construction of a new school building ($4,585,600) Beam Properties – Convert building into an Autism Center ($2,167,565) Hiawatha Education Foundation – Construction of a new Montessori School downtown ($1,780,000) KNS Properties – Construction of a 32 unit apartment building ($1,600,000) Cytec Engineering Materials – Structural roof replacement ($1,000,000) VEH Frontenac, LLC – Construction of a Qdoba Restaurant ($940,000) Target – Interior remodeling ($550,000) Winona County – Interior remodeling for County Offices ($474,256) Marvin Development – Remodel Taco Bell ($397,750) Bay State Milling – Demolition for a new warehouse ($356,200) Rivers Hotel – Rebuild pool structure at Holiday Inn Select ($350,000) Walmart – Remodeling ($230,860) Saint Mary’s University – Locker room remodeling ($200,000) Modern Transport – Construct Fertilizer Tower ($200,000)

Long-term Financial Planning:

The City and the Port Authority of Winona are working on providing city services to the new developments in downtown Winona. These include Main Square Development (a total reconstruction of a downtown block privately funded, when finished, a project of more than $30 million), the Fastenal Company’s to-be-built downtown office building for 400+ people, and the remodel of an old downtown YMCA building to be used for a different purpose.

A significant plan for the Cotter schools campus which will begin in 2020.

The City is working on the Levee Accreditation project. This is the certification of the levee by FEMA to protect the City in case of a 100-year flood event. (The City’s levee was built in the 1980s.)

Updates and upgrades are being made to the Lift Stations of the City’s Sanitary Sewer.

Riverview Drive is to be reconstructed to do a mill and overlay of a major truck route to the harbor and to downtown.

There will be the annual street reconstruction project to cover a few blocks of City streets.

The City Airport will build a snow removal equipment building. This is funded 89% by aid from the Federal and State of Minnesota governments.


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The City Airport has completed a major upgrade project. The upgrade included work to lengthen the main runway (from 5,199 feet to 5,679 feet), upgrade the alignment lighting and provide for a realignment of the taxiways at the Airport.

An analysis of the water and sanitary sewer utility rates has been completed and the revised rates have been used for 2012 through 2019. The purpose of the review was to provide a solid foundation for the future of the utilities (including recovering more of the fixed costs of the system) and to provide reserves for future replacement needs. The rates are to be reviewed annually to determine if the Water and Sanitary Sewer Funds are meeting their objectives.

The water and sanitary sewer utilities of the City are being extended to accommodate an orderly annexation of property into the City of Winona.

Accounting System and Budgetary Control:

The City’s accounting records are maintained on the accrual or modified accrual basis, as appropriate. Budgetary control is maintained by an encumbrance system, whereby purchase orders are reviewed by the department involved as to the availability of funds prior to their release to vendors. Purchase orders which exceed appropriation balances (or which have not had approval as required under the Minnesota Statutes or the City Charter) are not to be released until such funding or approval is made available.

Also inherent is a management philosophy that the existence of a particular item or appropriation on the approved budget does not automatically dictate that it will or must be spent. The budget process has flexibility in that transfers can be made within the department budget by the City Manager or between funds by the City Council where need has been adequately demonstrated. There is a review process—expenditures are not to be approved until it has been determined that (1) adequate funds were appropriated, (2) the expenditure is still necessary, and (3) funds are available.

In developing and evaluating the City’s accounting system, consideration is given to the adequacy of the City’s internal control structure. A properly designed internal control structure is designed to provide reasonable, but not absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use or disposition, and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that (1) the cost of control should not exceed the benefits likely to be derived, and (2) the evaluation of costs and benefits requires estimates and judgments by management. We believe that the City’s internal control structure adequately safeguards assets, and provides reasonable assurance of the proper recording of financial transactions.

Encumbrances are commitments related to unperformed contracts for goods or services and are used for budgetary control purposes. Encumbrances outstanding at the end of the year represent an estimated amount to be expended when the unperformed contracts are completed.


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General Fund Functions:

Revenues:

The following table presents a comparative analysis of General Fund budgeted revenues for 2020 and actual revenues for 2019 and 2018:

2020 Budget 2019 Actual 2018 Actual

% of % of % ofRevenue/Sources Amount Total Amount Total Amount Total

Property taxes 6,291,298$ 31.3 % 6,051,095$ 32.8 % 5,693,184$ 31.9 %Franchise fees and other taxes 1,450,000 7.2 1,446,196 7.8 1,485,669 8.3 Licenses and permits 184,650 0.9 203,249 1.1 198,675 1.1 Fines and forfeits 181,000 0.9 180,579 1.0 192,157 1.1 Intergovernmental 8,786,595 43.7 9,046,297 49.1 8,961,401 50.2 Investment earnings and change in fair value of investments 188,036 0.9 404,185 2.2 329,509 1.8 Charges for services 1,706,912 8.5 1,049,917 5.7 984,569 5.5 Other 1,341,000 6.6 52,033 0.3 8,457 0.1

20,129,491$ 100.0 % 18,433,551$ 100.0 % 17,853,621$ 100.0 %

The certified property taxes in the General Fund have an increase in 2020 over 2019 of $240,203. (The increase in property taxes for the General Fund operations was $357,911 for 2019 from 2018.)

Intergovernmental remains the largest percentage of General Fund revenues at 43.7% for 2020 and at 49.1% for 2019. Included in this category are the State of Minnesota’s payments to the City for Local Government Aid (LGA), which were approximately $9,965,851 (total for all funds) for 2019. Also included in 2019 were the Market Value credits of $1,645 for all funds. Market value credits are payments to the City, from the State of Minnesota, which lower the amount of property tax liability for a homeowner. (In 2018, the market value credit program revenue for the City was $1,666.)

Included in the 2020 budget (other) is $784,000 for transfers into the General Fund from various funds, which represent 3.9% of the total budget.

Expenditures:

A comparative analysis of General Fund budgeted expenditures for 2020 and actual expenditures for 2019 and 2018 is presented in the table below:

% of % of % ofExpenditures/Uses Amount Total Amount Total Amount Total

General government 4,330,750$ 21.5 % 3,294,326$ 17.8 % 3,245,657$ 18.6 %Public safety 9,572,767 47.6 9,181,078 49.7 8,806,923 50.6 Highways and streets 3,518,312 17.5 3,345,774 18.1 2,975,408 17.1 Sanitation and waste removal 57,450 0.3 26,326 0.1 52,481 0.3 Economic development 407,754 2.0 373,898 2.0 330,012 1.9 Park maintenance 2,242,458 11.1 2,254,715 12.2 2,004,397 11.5

20,129,491$ 100.0 % 18,476,117$ 100.0 % 17,414,878$ 100.0 %

2020 Budget 2019 Actual 2018 Actual


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General Government includes approximately $499,000 for contingencies in the 2020 budget (General Government), which represents 2.5% of the total budget. The amount incurred for contingencies for the 2019 actual and the 2018 actual was $0.

Public safety remained the largest area of the General Fund expenditures during 2019 (at 49.7%) and includes the departments of the Police, Fire, Emergency Management, Safety and Health Coordinator, and Flood Control. It is important to note that 22.2% of the 2019 $736,380 cost to operate the Law Enforcement Center, “LEC,” (a facility shared with Winona County) is included in the City’s financial reports (and 22.5% of $718,695 for 2018). Winona County includes the LEC in its annual budget and pays the total costs for the facility. The amount the City pays to Winona County per year is based on a contractual formula.

Highways and streets (18.1% in 2019) includes the services of Engineering, Streets and Alleys (snow removal), Street Lighting, and Central Garage.

General Fund—Cash Flow needs:

A portion of the City’s General Fund Balance is designated for cash flow purposes. The dollars set-aside are crucial to avoid short-term borrowing to meet cash flow needs. A major portion of the General Fund revenues is from property taxes and state revenues—those payments are made to the City only twice a year (June/July and December).

Cash Management:

Cash is invested in accordance with the City’s Investment Policy, which has been adopted by the City Council. All of the investments included in the City’s policy are also authorized by the State of Minnesota.

The City maintains a cash and investment pool that is available for use by all funds, except the employee benefit fund. The interest earnings from the cash pool were allocated to the various funds based upon their average cash balance.

The City’s Investment Policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. The pooled deposits were either insured by federal deposit insurance or collateralized. The collateral was pledged by various banks and held in safekeeping departments of banks other than the pledging bank in the name of the City.

All of the City’s pooled deposits and investments at December 31, 2019, are classified in the most secure credit risk category as defined by GASB. None of the City’s investments were held by the counterparty’s trust department or agent.

The City has not purchased any collateralized mortgage obligations (CMO), derivative securities, or interest-only strip investments. GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, requires investments to be reported at fair value in the balance sheet with changes in the fair value of investments reported in the operating statement. The City’s practice is to hold investments to maturity; therefore, the City does not expect the net increase in the fair value of investments shown in the financial statements will be realized. All investments in the City’s portfolio had a maturity of two years or less at December 31, 2019.


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Risk Management—Health Plan:

The City’s health benefit program is designed to provide for the payment of healthcare costs for employees. The City maintains a self-insurance program for employee group health coverage, which includes an individual excess coverage policy for claims exceeding $110,000 per person per year in 2019 (and $110,000 per person per year in 2018).

As of January 1, 2017, all of the City’s health plan options are consumer-driven healthcare programs combining high deductibles with individual Health Savings Accounts (HSAs)—employee-held accounts used for healthcare expenses not covered by the underlying plan. 121 Benefits administers legacy Health Plan Accounts (HPAs) for less than five grandfathered participants.

City Policies:

The City has a policy that the annual budget needs to be balanced. This policy resulted in the General Fund total 2020 adopted budget of $20,129,491 being $717,477 more than the 2019 adopted budget (of $19,412,014).

A financial policy that had a significant impact on the Water Fund and the Sanitary Sewer Fund was the decision to more adequately cover depreciation costs in those funds and to recover fixed costs through a user fee. A rate analysis was completed in 2011, which included a new rate structure that commenced on January 1, 2012 and continued through 2019.

The Equipment Replacement Fund, the Facilities Fund and the Infrastructure Replacement Fund have been set up for the purpose of the replacement of City equipment, the renovation of City facilities and the reconstruction of the City’s infrastructure, respectively, over the long term of the City.

Debt Management:

Bond Rating:

In the first half of 2017, Moody’s Investors Service of New York, the City’s bond rating agency, assigned an Aa1 rating to the City of Winona’s $4.8 million General Obligation Tax Abatement Bonds, Series 2017B and to the City of Winona’s $4.9 million General Obligation Sanitary Sewer Revenue Bonds, Series 2017A.

Also in the first half of 2017, concurrently, Moody’s affirmed the Aa1 rating on the City’s outstanding general obligation debt, affecting approximately $9.2 million post-sale. In issuing the rating, the service had discussed the City’s diversified tax base and its role as a regional economic center due to its significant health care, education and manufacturing presences. The service also expects the City’s financial position to remain stable and healthy. The City’s debt is modestly sized, with a direct debt burden of 0.6% of full value. Principal amortization is rapid with 100% of its debt to be retired in twelve years. All of the City’s debt is fixed rate, and the City is not a party to any interest rate swap agreements.

Moody’s Investors Service issued a “Credit Overview” at the beginning of the year 2020. “The credit position for Winona is very good, and its Aa1 rating is above the US cities median of Aa3. Key credit factors include a robust financial position, a modest debt burden, a somewhat inflated pension liability, and a moderately-sized tax base with a healthy wealth and income profile.”


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Debt Per Capita:

Net bonded debt per capita is a useful indicator of a city’s debt position to management, citizens, and investors in city bonds. The net direct bonded debt per capita for the City was approximately $185 in 2019. The City believes that its current low debt per capita enables it to issue debt, if needed, for specific projects that would hit a home run for the community. Debt statistics as of December 31, 2019 and 2018, follow:

Net Direct and 2019 2018 2019 Debt 2018 DebtOverlapping Debt Amount Amount per Capita per Capita

Net direct bonded 5,023,413$ 6,974,751$ 185$ 256$ Overlapping 10,276,775 6,837,925 378 251

Total 15,300,188$ 13,812,676$ 563$ 507$

Important Economic Factors:

During 2019, the City expended approximately $3.2 million in capital assets for construction in progress. Taxable market values in the City increased from 2019 to 2020 by 3.1%. Growth in values related to construction during 2019 were approximately $74.0 million for nonresidential and $9.4 million for residential.

A crucial element in the City’s continued financial stability is the revenue it receives from the State of Minnesota in the form of LGA, which is approximately 50% of the City’s General Fund’s revenues. (A discussion and analysis of the City’s overall financial condition during the fiscal year ended 2019 is included as part of the MD&A.)

Independent Audit:

The City Charter requires the City Council to provide for an annual audit of the City’s accounts and transactions of its departments by independent auditors, or the state department in charge of such work. This requirement has been complied with, and the independent auditors’ report is included in this CAFR.

Awards and Acknowledgments:

The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting (“Certificate of Achievement”) to the City of Winona, Minnesota, for its CAFR for the fiscal year ended December 31, 2018. The Certificate of Achievement is a prestigious national award that recognizes conformance with the highest standards for preparation of state and local government financial reports. Approximately 15% of the cities in Minnesota receive this award.

In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. This report satisfied accounting principles generally accepted in the United States of America, as well as applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to meet the Certificate of Achievement program’s requirements and we are submitting it to GFOA to determine its eligibility for another certificate.


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Many thanks to the Finance Department team for their superior work on the audit and in putting together this comprehensive financial report. It shows their deep understanding of accounting and governmental finance. A special shout-out to Jessica Wojahn, Financial Analyst, Allyn Burgmeier, City Accountant, Danielle Fetting, Payroll Accountant and Christine Booth, for their analytical skills in order to complete this report in an accurate and timely manner. Also thanks to Brad Budnick, IT Coordinator, for his assistance to make our electronic needs all run smoothly.

A thank you also goes to Mayor Peterson, the City Council, the Port Authority Commissioners, the City Manager and the Department Heads for their support throughout the year and their vision to make the City of Winona a wonderful place to live and work for both businesses and for individuals. The Finance team is looking forward to continuing to work with them.

Respectfully submitted,

Mary B. Burrichter Finance Director

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CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING

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ORGANIZATIONAL CHART

*Financial operations of these boards and commissions are included in this financial report. **Additional boards and commissions:

Aghaming Park Advisory Committee Airport Board of Adjustment Architectural Review Board Board of Adjustments Board of Gas Examiners Charter Commission Convention and Business Bureau Citizen’s Environmental Quality Commission Heritage Preservation Commission John Latsch Memorial Board Joint Airport Zoning Board Recreational Waterways Commission Winona Housing and Redevelopment Authority Winona Athletic Board

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CITY LEADERS DECEMBER 31, 2019

City Council:

Appointed/ Term Elected Date Expires

Mark Peterson, Mayor 01/01/13 12/31/20 Allyn Thurley, 1st Ward 01/01/01 12/31/20 Eileen Moeller, 2nd Ward 01/01/19 12/31/22 Pam Eyden, 3rd Ward 11/19/12 12/31/20 George Borzyskowski, 4th Ward 01/01/99 12/31/22 Michelle Alexander, At-Large 01/01/11 12/31/22 Paul Schollmeier, At-Large 01/01/17 12/31/20 City Staff:

Stephen T. Sarvi City Manager Flaherty and Hood City Attorney Keith Nelson Director of Public Works Monica Hennessy Mohan City Clerk Mary B. Burrichter Finance Director Paul Bostrack Chief of Police Curt Bittle Fire Chief Lucy McMartin Director of Community Development Chad Ubl Director of Community Services Brian DeFrang City Engineer Allyn Burgmeier City Accountant Jessica Wojahn Financial Analyst Carlos Espinosa City Planner Malia Fox Senior Friendship Center Director Greg Karow Building Official Marty Mullen Park Maintenance Superintendent Amy VanGuilder Central Garage Superintendent Mike Biggerstaff Street Superintendent Paul Drazkowski Wastewater Treatment Plant Superintendent Brent Bunke Water Department Superintendent

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SECTION II

FINANCIAL SECTION


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INDEPENDENT AUDITOR'S REPORT

Honorable Mayor and Members of the City Council City of Winona, MN

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Winona, Minnesota (the “City”), as of and for the year ended December 31, 2019, the budgetary comparison statement—general fund for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions

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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of December 31, 2019, and the respective changes in financial position, and, where applicable, cash flows

Deloitte & Touche LLP Suite 2800 50 South Sixth Street Minneapolis, MN 55402-1538 USA

Tel: +1 612 397 4000 Fax: +1 612 397 4450 www.deloitte.com

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thereof for the year then ended, and the budgetary comparison statement—general fund for the year ended December 31, 2019, in accordance with accounting principles generally accepted in the United States of America. Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 19– 29 and the Schedules of Contributions and Schedules of Proportionate Share of Net Pension Liability on pages 93 – 97 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying supplementary information, such as the combining and individual nonmajor fund financial statements, other supplementary schedules, and the other information, such as the introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying supplementary information, such as the combining and individual nonmajor fund financial statements and other supplementary schedules, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information, such as the combining and individual nonmajor fund financial statements and other supplementary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

May 18, 2020

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MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)

This section of the comprehensive annual financial report (CAFR) of the City of Winona, Minnesota (the “City”), presents a discussion and analysis of the City’s financial performance during the fiscal year ended December 31, 2019. Please read it in conjunction with the transmittal letter at the front of this report and the City’s basic financial statements following this section.

Financial Highlights

The assets and deferred outflows of the City exceeded liabilities and deferred inflows by $131,761,641 (net position). Of this amount, $83,879,845 is the net investment in capital assets, $20,790,875 is restricted for specific purposes and $27,090,921 (unrestricted net position) may be used to meet the City’s ongoing obligations to its citizens and creditors in accordance with the City’s fund designations, cash flow needs and fiscal policies. The City-wide financial statements include $5,605,711 of depreciation expense on its investment in capital assets.

The City’s total net position increased by $1,774,751. A contributor to this was the increase in the net position for business-type activities of $1,638,904. In the business-type activities the total liabilities decreased by $861,101 largely due to debt repayment. Net capital assets increased by $1,650,428.

Net investments in capital assets for governmental activities were $39,045,971. This amount includes net capital assets of $45,170,971 less capital related borrowings of $6,125,000. The City’s net investments in capital assets for business-type activities were $44,833,874. Included in this amount are net capital assets of $49,571,242 less capital related borrowings of $4,737,368.

The City’s governmental funds reported combined ending fund balances of $19.6 million. Of this total amount, the majority of it is either nonspendable, restricted, committed, or assigned.

At the end of the current fiscal year, the fund balance for the General Fund was distributed as follows: restricted of $61,238 committed of $3,265,228, assigned of $5,403,308 and nonspendable of $101,176.

The City decreased total outstanding debt obligations during the current fiscal year. The total indebtedness of City Bond and Equipment Certificates (of $10,770,000) decreased by $1,600,000. The Port Authority of Winona (“Port Authority”) decreased its total outstanding debt obligations (of $285,000) during the current fiscal year. The total Port Authority bond indebtedness decreased by $280,000.

The City maintained its Aal bond rating from Moody’s in February and in March 2017. Moody’s cited the City’s highly diversified tax base, favorable debt profile including rapid payback of debt, stable financial operations and strong financial management.

The City is a participating employer of PERA, the State pension trust fund. Funding of the pension plan will continue based on the required contribution rates as set by Minnesota statute. In 2019 from 2018, the City’s Net Pension Liability (NPL) increased as follows: Pension-Coordinated to $5,617,236 from $5,542,042 and the Pension-Police and Fire to $4,992,979 from $4,777,350. According to PERA’s financial report for the fiscal year end of June 30, 2019, invested assets produced a return of approximately 7.3%, which is slightly lower than the 7.5% statutorily assumed rate of return.

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Using the Financial Section of This Comprehensive Annual Financial Report

This annual report consists of a series of financial statements.

1. Government-wide financial statements providing information for the City as a whole. These include the Statement of Net Position and the Statement of Activities, which provide information about the activities of the City as a whole, and present a longer-term view of the City’s finances.

2. Fund financial statements are presented after the Statement of Activities and provide detailed information for the City’s significant funds. Fund financial statements report the City’s operations in more detail than the government-wide statements by providing information about the City’s funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of organizations outside of the government.

3. The notes to the basic financial statements provide information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

This report also contains other supplementary information in addition to the basic financial statements.

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.

An analysis of the City begins with the Statement of Net Position and the Statement of Activities. One of the most important questions asked about the City’s finances is, “Is the City, as a whole, better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities both report information about the City, as a whole, and about its activities in a way that helps answer this question. With the exception of fiduciary funds, which have been excluded because they do not represent the City’s financial resources, these statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the City’s net position and changes in them. You can think of the City’s net position—the difference between assets and liabilities—as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether the City’s financial health is improving or deteriorating. You will also need to consider nonfinancial factors, however, to assess the overall health of the City.

The government-wide financial statements include not only the City (known as the primary government), but also a legally separate Port Authority for which the City is financially accountable. Financial information for this component unit is reported separately from the financial information presented for the primary government.

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. An analysis of the City’s major funds begins with the funds’ financial statements, and provides detailed information about the most significant funds—not the City as a whole. Some funds are required to be established by state law and by bond covenants. However, the City establishes other funds to help it control and manage money for particular purposes or to show that it is

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meeting legal responsibilities for using certain taxes, grants, and other money (like grants received). The City’s three kinds of funds—governmental, proprietary, and fiduciary—use different accounting approaches.

Governmental Funds—Governmental fund financial statements focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps the reader of the statements determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s general governmental programs. The comparison between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is shown in a reconciliation.

The basic governmental fund financial statements can be found on pages 34 - 41 of this report.

Proprietary Funds—When the City charges customers for the services it provides—whether to outside customers or to other units of the City—these services are generally reported in proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same as the business-type activities reported in the government-wide statements, but provide more detail and additional information. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. Because the internal service funds predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

The basic proprietary fund financial statements can be found on pages 42 - 47 of this report.

Fiduciary Funds—Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund financial statement can be found on page 48 - 49 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 can be found on pages 51 - 91 of this report.

Other Information

The combining statements in connection with nonmajor governmental funds and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 99 - 121 of this report.

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Government-Wide Financial Analysis

Net position may serve over time as a useful indicator of the City’s financial position. For the City, the assets exceeded liabilities by $131,761,641 at December 31, 2019.

The largest portion of the City’s net position (64%) reflects the City’s investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related outstanding debt used to acquire those assets. 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, the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate liabilities.

A condensed version of the Statement of Net Position at December 31, 2019, is as follows:

Table 1 STATEMENT OF NET POSITION (Primary Government only) at December 31, 2019, compared to December 31, 2018 (In thousands)

2019 2018 2019 2018 2019 2018

Current and other assets 37,732$ 37,605$ 31,517$ 32,802$ 69,249$ 70,407$ Capital assets 45,171 46,580 49,571 47,462 94,742 94,042

Total assets 82,903$ 84,185$ 81,088$ 80,264$ 163,991$ 164,449$

Deferred outflows of resources 5,902$ 8,830$ 510$ 880$ 6,412$ 9,710$

Current and other liabilities 12,246$ 13,619$ 6,870$ 7,763$ 19,116$ 21,382$ Net pension liability 8,616 8,357 1,994 1,962 10,610 10,319

Total liabilities 20,862$ 21,976$ 8,864$ 9,725$ 29,726$ 31,701$

Deferred inflows of resources 8,362$ 11,594$ 553$ 877$ 8,915$ 12,471$

Net position: Net investment in capital assets 39,046$ 39,798$ 44,834$ 43,276$ 83,880$ 83,074$ Restricted 19,225 17,633 1,566 6,914 20,791 24,547 Unrestricted 1,310 2,014 25,781 20,352 27,091 22,366

Total net position 59,581$ 59,445$ 72,181$ 70,542$ 131,762$ 129,987$ Total liabilities and net position 80,443$ 81,421$ 81,045$ 80,267$ 161,488$ 161,688$

TotalGovernmental Business-Type

Activities Activities

A portion of the City’s net position is invested in capital assets, at $83.9 million. Another portion of the net position represents resources that are subject to external restrictions on how they may be used (approximately $20.8 million). The remaining balance of unrestricted net position (approximately $27.1 million) may be used to meet the City’s ongoing obligations to citizens, creditors and cash flow needs.

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At December 31, 2019 the City is able to report positive balances in all of the categories of net position for the City as a whole and in two of the three categories of net position for its separate governmental and business-type activities. At December 31, 2018, the City is able to report positive balances in all of the categories of net position, both for the City, as a whole, as well as for its separate governmental and business-type activities.

In 2019 the net position in governmental activities increased by approximately $135,847. The primary contributor was a decrease in the Total Liabilities. Within total liabilities, Outstanding and incurred, but not reported health insurance claims decreased by $179,000.

In 2019 the net position in business activities increased by $1,638,904. This is primarily a result of a decrease in the Total Liabilities. Of this amount, $795,000 was due to debt repayment.

In 2015, the City implemented GASB Statement No. 68 in which the City was required to report its proportionate share of the Minnesota Public Employees Retirement Association (PERA) net pension liabilities. For 2019, there is a small increase in the net pension liabilities (NPL), from 2018, due to a small decrease in asset gains for the plan year ended June 30, 2019. According to PERA’s financial report their return on invested assets was approximately 7.3% for the plan year ended June 30, 2019.

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Governmental Activities

Governmental activities increased the City’s net position by approximately $136,000, in 2019, compared to an increase of approximately $416,000 in 2018.

Table 2 STATEMENT OF ACTIVITIES (Primary Government only) for the year ended December 31, 2019, compared to the year ended December 31, 2018: (In thousands)

Govern- Business- Govern- Business-mental Type mental Type

Activities Activities Total Activities Activities Total

REVENUES: Program revenues: Charges for services 1,551$ 8,894$ 10,445$ 1,428$ 8,527$ 9,955$ Operating grants and contributions 1,042 - 1,042 926 1,210 2,136 Capital grants and contributions 356 1,589 1,945 1,230 130 1,360 General revenues: Taxes (property) 7,376 1,276 8,652 6,903 1,184 8,087 Franchise fees 1,446 - 1,446 1,486 - 1,486 Grants and contributions not restricted 8,846 1,402 10,248 8,835 1,180 10,015 Investment earnings 764 595 1,359 573 509 1,082

Other - - - - 12 12

Total revenues 21,381 13,756 35,137 21,381 12,752 34,133

EXPENSES: General government 3,595 - 3,595 3,344 - 3,344 Public safety 10,290 - 10,290 9,827 - 9,827 Highways and streets 4,573 - 4,573 5,502 - 5,502 Sanitation and waste removal 26 - 26 53 - 53 Economic development 401 - 401 323 - 323 Culture/recreation 2,337 - 2,337 1,964 - 1,964 Interest on long-term debt 46 - 46 54 - 54 Water - 2,854 2,854 - 2,539 2,539 Sanitary Sewer - 3,178 3,178 - 3,617 3,617 Inspections - 560 560 - 437 437 Airport - 930 930 - 952 952 Public transportation - 1,049 1,049 - 932 932 Recreation - 2,018 2,018 - 2,046 2,046 Library - 1,232 1,232 - 1,029 1,029 Storm sewer - 273 273 - 240 240

Total expenses 21,268 12,094 33,362 21,067 11,792 32,859

CHANGE IN NET POSITION BEFORE TRANSFERS 113 1,662 1,775 314 960 1,274

TRANSFERS 23 (23) - 102 (102) -

CHANGE IN NET POSITION 136 1,639 1,775 416 858 1,274

NET POSITION—Beginning of year 59,445 70,542 129,987 59,348 69,831 129,179

PRIOR PERIOD ADJUSTMENT—OPEB (319) (147) (466)

NET POSITION—Beginning of year, restated 59,445 70,542 129,987 59,029 69,684 128,713

NET POSITION—End of year 59,581$ 72,181$ 131,762$ 59,445$ 70,542$ 129,987$

2019 2018

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Governmental Activities (continued)

The following charts illustrate the City’s governmental activities for the year ended December 31, 2019:

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Business-Type Activities

The following charts illustrate the City’s business-type activities for the year ended December 31, 2019:

Financial Analysis of the City’s Funds

Governmental Funds:

This description of the City’s governmental funds provides information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financial requirements.

General Fund—At December 31, 2019, the fund balance of the General Fund was composed of the following: restricted of $61,238, committed of $3,265,228, assigned of $5,403,308, and nonspendable of $101,176. The 2019 expenditures for the General Fund increased by approximately $1,061,239 from 2018 mainly due to the increase in expenditures in the departments of General Government, Public Safety, Highways and Streets, and Park Maintenance. (The General Government expenditures increased by $115,011, Public Safety expenditures increased by $331,258, the Highways and Streets expenditures increased by $447,098 and the Park Maintenance expenditures increased by $179,310 from 2018.)

Debt Service Funds—The total fund balance of the debt service funds is restricted for the payment of debt service.

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Permanent Improvement Revolving Bond Fund—The fund balance for this fund has increased by $36,246 from 2018 to 2019 due to $12,664 in special assessments revenue, $11,980 in general property tax revenue, and $11,602 investment earnings in 2019.

PROPRIETARY FUNDS:

The City’s proprietary funds statements provide the same type of information found in the government-wide financial statements, but in more detail.

Water Fund—The rates for the Water utility were not adjusted for 2019. (They increased by less than 1.0% for 2018 with no change in 2017). A new water rate structure was put into place for 2012, which included a seasonal variable rate and recovers more of the fixed costs of the system as an availability charge.

Sanitary Sewer Fund—The variable rates for the Sanitary Sewer utility were increased by 3% in 2019. (They increased by 4.0% for 2018 and 2017). The fixed sewer fee increased to $9.00 per quarter in 2019 from $8.38 per quarter in 2018. A new Sanitary Sewer utility rate structure was approved for 2012, which works to recover more of the fixed costs of the system with the addition of an availability charge.

Storm Sewer Fund—This utility began in 2003 to cover the maintenance costs of handling storm water and the increased responsibilities of handling storm water due to federal requirements. In 2019, the minimum charge increased from $5.00 per quarter in 2018 to $6.00 per quarter in 2019. The rate for the Storm Sewer utility increased by 3.0% in 2018 and the minimum charge increased to $5.00 per quarter in 2018 (from $4.00 per quarter in 2017).

General Fund Budgetary Highlights and Analysis

During 2019 there was a net increase of $1,703,407 in appropriations for the General Fund from the original to the final amended budget. Following is the component of the increase:

$1,703,407 was added to various departments for encumbrances from December 31, 2018.

Following is a budget variance analysis:

The Streets and Alleys department had a favorable budget variance of approximately $295,000 mainly because the actual expense was approximately $315,000 less for capital outlay than the 2019 budget.

Capital Assets

At the end of 2019, the City had $94,742,213 invested in a broad range of capital assets (net of accumulated depreciation). The total increase in capital assets for the current fiscal year was 0.8% (a 3% decrease for governmental activities and a 4.4% increase for business-type activities). Major capital asset events during the current year included the following:

The Park Maintenance department spent $956,000 on Sobieski park pavilion and $2,550,000 on Levee park improvements.

The Street department spent over $256,000 on Huff Street and Hamilton Street projects.

The Police department spent $109,000 on three police vehicles.

In the Water Fund, $275,000 was spent on the Levee park water utilities and $316,000 on Well 15, Well 20, and elevated tank improvements.

The Sanitary Sewer Fund spent $472,000 on Waste Water treatment plant addition, $275,000 on Levee park sewer utilities, $1,437,000 on Lift stations #6 and #9 and $485,000 on the disinfection project.

The Recreation Fund spent $103,000 on the Zamboni ice resurfacer.

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Refer to Note 3 of the basic financial statements for a schedule showing the City’s capital asset activity.

Long-Term Debt

As of December 31, 2019, the City had $10,770,000 in bonds and equipment certificates outstanding versus $12,370,000 at December 31, 2018, a decrease of $1,600,000. Also, as of December 31, 2019, the Port Authority had $285,000 in bonds outstanding versus $565,000 at December 31, 2018, a decrease of $280,000. All debt is backed by the full faith and credit of the City. Refer to Note 5 of the basic financial statements for a schedule showing the City’s long-term debt activity.

The City’s general obligation bond rating carries a Aa1 bond rating from Moody’s Investors Services. This rating was assigned and affirmed in February and March 2017 with the issuance of the City of Winona’s $4.8 million General Obligation Tax Abatement Bonds, Series 2017B and the City of Winona’s $4.9 million General Obligation Sanitary Sewer Revenue Bonds, Series 2017A. Concurrently, Moody’s affirmed the Aa1 rating on the City’s outstanding general obligation debt, affecting approximately $9.2 million post-sale.

Economic Factors and Next Year’s Budget

The City has stayed with short-term maturities and high-credit quality on investments as disclosed in Note 2 to the financial statements (weighted-average maturity of 0.76 years). This is due to the concern that the City wants to remain protected against a significant increase in interest rates which would create a large reduction in the fair value of any long-term maturity investments.

Beginning in the 2012 tax collection year, the State of Minnesota Market Value Homestead Credit program was changed to a Homestead Market Value Exclusion program which resulted in a reduction to the overall taxable market values and tax capacities of Minnesota cities. The City of Winona experienced a loss of approximately $151 million (or 9.8% of the 2011 collection year) taxable market value due to this change.

As a labor-intensive organization, the City faces competitive pressures and rising costs relating to staff. The cost of the City’s health benefits was approximately $2.03 million in 2019 and $1.99 million in 2018.

For 2019, the City offered three health plan options with consumer-driven healthcare programs that combined high deductibles with individual Health Savings Accounts--employee-held accounts used for health care expenses not covered by the underlying plan. The City will continue to pursue healthcare options that would contain costs for the City, and remain a benefit to the employees.

City retirees have the same choice of healthcare plans that the City provides to their active employees. The City requires the former employee to pay the full group active employee cost of the plan they select. Until 2007, the benefit expired at age 65. In late 2007, the City began allowing retirees to continue their coverage beyond age 65 by continuing to pay the full group active employee cost. At this time, police sergeants and police officers have elected not to participate in the City’s healthcare plan. (They are entitled to review the options again in 2020.) For additional detail, refer to Note 13 of the basic financial statements.

As discussed in Note 6 to the basic financial statements, the City participates in the statewide defined benefit pension plans. The City’s contributions to the General Employees Retirement Fund (GERF) in 2019 were $555,424. The City’s contributions to the Public Employees Police and Fire Fund (PEPFF) in 2019 were $866,081. As of December 31, 2019, the GERF was 78.6% funded and the PEPFF was 87.4% funded. (As of December 31, 2018, the GERF was 78.0% funded and the PEPFF was 87.1% funded.) Contribution rates were increased in 2011, 2014 and 2015 (from 7.25% in 2011 to 7.5% in 2015 for the GERF and from 14.4% in 2011 to 15.3% in 2014, to 16.2% in 2015, to 16.95% in 2019 for the PEPFF) to move the plans back to a fully funded status as required by Minnesota state law.

The increase for 2019 (from 2018) in the statewide defined benefit pension plans for PEPFF increased from 16.20% to 16.95% for city contributions and member contributions increased from 10.80% to 11.30%.

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The outstanding bonds for the City and the Port Authority totaled $11.1 million on December 31, 2019 and $12.9 million on December 31, 2018. Amortization is rapid at 100% within eleven years with all of the interest at a fixed rate. The debt is supported by property taxes and utility fund revenues.

For 2019 the City and Port Authority’s Capital Plan included the $840,000 for a street reconstruction project, the Bandshell Playground renovation of $400,000, a water extension project at Jaybee Drive for $760,000, various water projects for $355,000, a sewer extension project at Jaybee Drive for $1,140,000, a Riverview Drive project for $3,500,000, Masonic Temple brick and masonry for $205,000, an Airport snow removal equipment building for $600,000, and Port Commercial Harbor sheet piling and dock rehab for $750,000.

The City continues to see new construction growth both in residential and in commercial construction. In 2019 the building permits totaled approximately $83.3 million.

The increase to the City’s tax base during the past ten years is at 15.4%.

Per State Statute, the State of Minnesota will have a balanced budget for the next biennium. (The legislature is scheduled to adjourn during the third week of May.)

The Mayor, the City Council, and the management of the City are working on what they can do to promote continued growth.

An update on Coronavirus (COVID-19) in Winona County, where the City of Winona is located, is as follows: as of May 12, 2020, there were 71 confirmed cases and 15 deaths. All but one of the deaths is from one Long-term Care Facility. Located within the City of Winona, Winona Health has test kits available for anyone that would like to be tested. Winona Health is monitoring the COVID-19 situation and, at this time, it appears to be contained and manageable.

Contacting the City’s Financial Management

This financial report is designed to provide a general overview of the City’s finances for all people with an interest in the City’s finances, and to show the City’s accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the City of Winona Finance Department (Finance Director) at Post Office Box 378, Winona, MN 55987.

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BASIC FINANCIAL STATEMENTS


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STATEMENT OF NET POSITION

AS OF DECEMBER 31, 2019

Business- ComponentGovernmental Type Unit—

Activities Activities Total Port Authority

ASSETS:Cash and cash equivalents 34,936,256$ 29,389,382$ 64,325,638$ 4,429,158$ Restricted investments 380,614 - 380,614 - Receivables 1,482,655 1,549,842 3,032,497 19,298 Internal balances 84,105 (84,105) - - Due from component unit 13,146 - 13,146 - Due from other governmental units 145,619 402,170 547,789 387,050 Note receivable 588,000 - 588,000 - Inventories - 249,679 249,679 - Prepaid items 101,196 9,367 110,563 - Properties held for development (Note 4) - - - 2,314,592 Capital assets (Note 3):

Nondepreciable 7,128,496 1,031,619 8,160,115 - Construction in progress 4,905,735 2,766,791 7,672,526 - Depreciable buildings, property, and equipment—net 8,193,940 34,146,335 42,340,275 1,646,981 Depreciable infrastructure—net 24,942,800 11,626,497 36,569,297 -

Capital assets—net 45,170,971 49,571,242 94,742,213 1,646,981

Total assets 82,902,562 81,087,577 163,990,139 8,797,079

DEFERRED OUTFLOWS OF RESOURCES:Deferred outflow - pension 5,902,439 510,247 6,412,686 -

LIABILITIES:Accounts payable 974,104 496,151 1,470,255 305,353 Cash written against future deposits - 61,724 61,724 - Outstanding and incurred, but not reported claims 148,000 - 148,000 - Accrued interest payable 63,260 50,331 113,591 2,375 Due to primary government - - - 13,146 Unearned revenue 568,837 17,112 585,949 - Noncurrent liabilities:

Due within one year 830,000 465,000 1,295,000 285,000 Due in more than one year 9,661,686 5,779,290 15,440,976 - Due in more than one year - net pension liability 8,616,217 1,993,990 10,610,207 -

Total liabilities 20,862,104 8,863,598 29,725,702 605,874

DEFERRED INFLOWS OF RESOURCES:Deferred inflow - pension 8,362,278 553,204 8,915,482 -

NET POSITION: Net investment in capital assets 39,045,971 44,833,874 83,879,845 1,361,981 Restricted for:

Employee benefits 2,867,352 - 2,867,352 - Capital projects 3,020,318 - 3,020,318 112,322 Ice arena 57,186 - 57,186 - Health insurance 1,603,421 - 1,603,421 - Debt service 1,416,899 551,690 1,968,589 559,688 PIR Construction 343,857 - 343,857 - Street reconstruction 1,107,402 - 1,107,402 - Equipment 348,878 - 348,878 - Facilities 2,779,753 - 2,779,753 - Infrastructure replacement 3,848,089 - 3,848,089 - Lake Winona dredging project - - - 594,155 Other purposes (Note 1.M.) 1,349,510 1,014,182 2,363,692 5,563,059 Nonexpendable—other than permanent funds 101,196 - 101,196 - Nonexpendable—permanent funds 56,000 - 56,000 - Expendable permanent funds 325,142 - 325,142 -

Unrestricted 1,309,645 25,781,276 27,090,921 -

Total net position 59,580,619$ 72,181,022$ 131,761,641$ 8,191,205$

See notes to basic financial statements.

Primary Government


STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2019

Operating and Capital Component UnitCharges for Other Grants Grants and Governmental Business-Type Port Authority

Functions/Programs Expenses Services and Contributions Contributions Activities Activities Total

GOVERNMENTAL ACTIVITIES:General government 3,595,492$ 983,416$ 77,876$ - $ (2,534,200)$ - $ (2,534,200)$ Public safety 10,289,817 304,649 623,922 - (9,361,246) - (9,361,246) Highways and streets 4,572,968 33,520 340,335 205,750 (3,993,363) - (3,993,363) Sanitation and waste removal 26,325 2,275 - - (24,050) - (24,050) Economic development 401,143 93,822 - 12,664 (294,657) - (294,657) Culture/ recreation 2,336,745 132,826 - 137,799 (2,066,120) - (2,066,120) Interest on long-term debt 45,500 - - - (45,500) - (45,500)

Total governmental activities 21,267,990 1,550,508 1,042,133 356,213 (18,319,136) - (18,319,136)

BUSINESS-TYPE ACTIVITIES:Water 2,854,017 3,484,011 - 3,784 - 633,778 633,778 Sanitary Sewer 3,177,598 3,334,220 - 2,821 - 159,443 159,443 Inspections 559,332 845,723 - - - 286,391 286,391 Airport 930,165 29,415 - 361,059 - (539,691) (539,691) Public transportation 1,049,367 249,808 - 842,743 - 43,184 43,184 Recreation 2,017,924 521,019 - 105,649 - (1,391,256) (1,391,256) Library 1,232,115 21,082 - 241,767 - (969,266) (969,266) Storm sewer 273,280 408,663 - 31,535 - 166,918 166,918

Total business-type activities 12,093,798 8,893,941 - 1,589,358 - (1,610,499) (1,610,499)

Total primary government 33,361,788$ 10,444,449$ 1,042,133$ 1,945,571$ (18,319,136) (1,610,499) (19,929,635)

Component unit activities—Port Authority 1,115,791$ 454,852$ - $ 551,248$ (109,691)$

General revenues:Taxes:

Property taxes levied for general purposes 7,375,944 1,275,551 8,651,495 580,237 Other taxes - - - 111,623 Franchise fees 1,446,196 - 1,446,196 -

Grants and contributions not restricted to specific programs 8,845,516 1,402,175 10,247,691 2,226 Interest and investment earnings 763,890 595,114 1,359,004 74,993

Sale of assets - - - 210,000 Transfers 23,437 (23,437) -

Total general revenues and transfers 18,454,983 3,249,403 21,704,386 979,079

Change in net position 135,847 1,638,904 1,774,751 869,388 Net position—beginning 59,444,772 70,542,118 129,986,890 7,321,817

Net position—ending 59,580,619$ 72,181,022$ 131,761,641$ 8,191,205$


Net (Expense) Revenue andProgram Revenues Changes in Net Position

Primary Government

- 33 -

THIS PAGE LEFT INTENTIONALLY BLANK.

- 34 -


BALANCE SHEET—GOVERNMENTAL FUNDSAS OF DECEMBER 31, 2019

Permanent PermanentImprovement Improvement

Revolving Revolving CityASSETS General Bond Construction Equipment

Cash, cash equivalents, and investments 10,047,127$ 528,531$ 343,857$ 348,878$ Restricted investments - - - - Receivables—net: Taxes 217,193 537 - - Special assessments - 508,199 - - Customers and other 324,112 - - - Due from other funds 90,000 - - - Due from other governmental units 124,246 8,804 - - Due from component unit 13,146 - - - Prepaid items 101,176 - - - Accrued interest on

investments 285,887 - - -

TOTAL 11,202,887$ 1,046,071$ 343,857$ 348,878$

LIABILITIES AND FUND BALANCES

LIABILITIES: Accounts payable 594,977$ - $ - $ - $ Accrued salaries and compensated absences 1,559,767 - - -

Total liabilities 2,154,744 - - -

DEFERRED INFLOWS OF RESOURCES

Unavailable revenue 217,193 508,736 - -

FUND BALANCES: Nonspendable 101,176 - - - Restricted 61,238 537,335 343,857 348,878 Committed 3,265,228 - - - Assigned 5,403,308 - - - Unassigned deficit - - - -

Total fund balances 8,830,950 537,335 343,857 348,878

TOTAL 11,202,887$ 1,046,071$ 343,857$ 348,878$


- 35 -

OtherNonmajor Total

Bud King Street Governmental GovernmentalIce Arena Reconstruction Funds Funds

57,186$ 1,105,941$ 4,919,982$ 17,351,502$ - - 380,614 380,614

- - 29,285 247,015 - - - 508,199 - - 116,653 440,765 - - - 90,000

- 1,461 11,108 145,619 - - - 13,146 - - 20 101,196

- - - 285,887

57,186$ 1,107,402$ 5,457,662$ 19,563,943$

- $ - $ 46,371$ 641,348$

- - 18,693 1,578,460

- - 65,064 2,219,808

- - 29,285 755,214

- - 56,020 157,196 57,186 1,107,402 4,762,358 7,218,254

- - 556,445 3,821,673 - - - 5,403,308 - - (11,510) (11,510)

57,186 1,107,402 5,363,313 16,588,921

57,186$ 1,107,402$ 5,457,662$ 19,563,943$

- 36 -


RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE

SHEET TO THE STATEMENT OF NET POSITIONAS OF DECEMBER 31, 2019

FUND BALANCE—TOTAL GOVERNMENTAL FUNDS 16,588,921$

Amounts reported for governmental activities in the statement of net position are different because:

1. Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds: Construction in progress 4,905,735$ Governmental capital assets 102,561,677 Less accumulated depreciation (62,296,441) 45,170,971

2. Unavailable revenue in governmental funds is susceptible to full accrual on the government-wide statements— Unavailable special assessments, property taxes, state grant, and service charges 755,213

3. Long-term liabilities (bonds payable) are not payable with current financial resources and are therefore not reported in the governmental funds. (6,125,000)

4. The City uses an internal service fund to charge the cost of its self- insurance activities to individual funds: Internal service funds net position 3,259,669 Cumulative portion to business-type activities (5,895) 3,253,774

5. Accrued interest is not payable with current financial resources and is therefore not reported in the governmental funds. (63,260)

6. Note receivable in governmental funds is susceptible to full accrual on the government-wide statements: Note receivable 588,000 Less unavailable revenue (588,000) -

NET POSITION OF GOVERNMENTAL ACTIVITIES 59,580,619$


- 37 -


- 38 -


STATEMENT OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCES—GOVERNMENTAL FUNDSFOR THE YEAR ENDED DECEMBER 31, 2019

Permanent PermanentImprovement Improvement

Revolving Revolving City General Bond Construction Equipment

REVENUES: General property taxes 6,051,095$ 11,980$ - $ - $ Franchise fees 1,446,196 - - - Special assessments - 12,664 - - Licenses and permits 203,249 - - - Fines and forfeits 180,579 - - - Intergovernmental revenues 9,046,297 - - - Investment earnings 272,907 11,602 6,970 6,880 Net increase (decrease) in fair value of investments 131,278 - - - Charges for services 1,049,917 - - -

Contributions 52,033 - - -

Total revenues 18,433,551 36,246 6,970 6,880

EXPENDITURES: Current: General government 3,244,526 - - - Public safety 9,005,573 - - - Highways and streets 3,262,294 - - - Sanitation and waste removal 26,326 - - - Economic development 373,898 - - - Park maintenance 2,045,424 - - - Capital outlay: General government 49,800 - - - Public safety 175,505 - - - Highways and streets 83,480 - 17,985 - Park maintenance 209,291 - - - Debt service: Bond principal - - - - Interest and other expenditures - - - -

Total expenditures 18,476,117 - 17,985 -

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (42,566) 36,246 (11,015) 6,880

OTHER FINANCING (USES) SOURCES: Transfer to other funds (599,114) - - - Transfers from other funds 518,772 - - -

Total other financing (uses) sources (80,342) - - -

NET CHANGE IN FUND BALANCE (122,908) 36,246 (11,015) 6,880

FUND BALANCE—Beginning of year 8,953,858 501,089 354,872 341,998

FUND BALANCE—End of year 8,830,950$ 537,335$ 343,857$ 348,878$


- 39 -

OtherNonmajor Total

Bud King Street Governmental GovernmentalIce Arena Reconstruction Funds Funds

- $ 141,612$ 1,084,962$ 7,289,649$ - - - 1,446,196 - - - 12,664 - - - 203,249 - - - 180,579 - 748,476 246,493 10,041,266

1,163 12,681 89,444 401,647

- - 1,353 132,631 - - 70,337 1,120,254 - - 137,899 189,932

1,163 902,769 1,630,488 21,018,067

- - 144,658 3,389,184 - - - 9,005,573 - - - 3,262,294 - - 26,326 - - 9,259 383,157 - - 21,010 2,066,434

- - - 49,800 - - - 175,505 - 156,720 270,404 528,589

2,307 - 459,016 670,614

- - 805,000 805,000 - - 164,675 164,675

2,307 156,720 1,874,022 20,527,151

(1,144) 746,049 (243,534) 490,916

- - (251,235) (850,349) - 21,948 409,283 950,003

- 21,948 158,048 99,654

(1,144) 767,997 (85,486) 590,570

58,330 339,405 5,448,799 15,998,351

57,186$ 1,107,402$ 5,363,313$ 16,588,921$

- 40 -


RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

FOR THE YEAR ENDED DECEMBER 31, 2019

NET CHANGE IN FUND BALANCES—TOTAL GOVERNMENTAL FUNDS 590,570$

Amounts reported for governmental activities in the statement of activities are different because:

1. Governmental funds report capital outlays as expenditures while the government-wide statement of activities reports depreciation expense to allocate those expenditures over the life of the assets. As a result, fund balance decreases by the amount of financial resources expended, whereas net position decreases by the amount of depreciation expense charged for the year. This is the amount by which capital outlays exceeded depreciation expense.

Construction in progress (2,994,782)$ Capital outlay 4,293,955 Depreciation expense (2,707,886) (1,408,713)

2. Revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. Taxes 86,295 Special assessments 50,735 Other (4,310) 132,720

3. Bond proceeds are reported as other financing sources in governmental funds and thus contribute to the increase in fund balance. In the government- wide statements, however, issuing debt increases long-term liabilities in the statement of net position and does not affect the statement of activities. This is the amount received related to the issuance of debt. Net of issuance and repayment of the principal on long-term debt 805,000 805,000

4. Interest expense in the government-wide statement of activities differs from the amount reported in governmental funds because additional accrued interest was calculated for bonds payable, which are expended in the governmental fund statements. Accrued interest payable—December 31, 2019 (63,260) Accrued interest payable—December 31, 2018 71,510 8,250

5. Internal service funds are used by management to charge the costs of certain activities, such as insurance, to individual funds. This amount represents the change in net position of the internal service fund, which is reported with governmental activities. 8,020 8,020

6. Long-term bond proceeds are susceptible to full accrual on the government-wide statements:

General revenue: General obligation bonds issued Expense: Departmental expense -

CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 135,847$


- 41 -


BUDGETARY COMPARISON STATEMENT—GENERAL FUNDFOR THE YEAR ENDED DECEMBER 31, 2019

Variance With

FinalOriginal Final Actual Budget

REVENUES: General property taxes 6,049,479$ 6,049,479$ 6,051,095$ 1,616$ Franchise fees 1,460,000 1,460,000 1,446,196 (13,804) Licenses and permits 176,790 176,790 203,249 26,459 Fines and forfeits 188,000 188,000 180,579 (7,421) Intergovernmental revenues 8,707,682 8,707,682 9,046,297 338,615 Investment earnings 3,000 3,000 272,907 269,907 Net increase in fair value of investments - - 131,278 131,278 Charges for services 1,952,063 1,952,063 1,049,917 (902,146) Contributions - - 52,033 52,033

Total revenues 18,537,014 18,537,014 18,433,551 (103,463)

EXPENDITURES: General government 4,057,829 4,189,405 3,244,526 944,879 Public safety 9,068,055 9,318,060 9,005,573 312,487 Highways and streets 3,004,068 3,428,021 3,262,294 165,727 Sanitation and waste removal 55,450 55,450 26,326 29,124 Economic development 375,181 386,717 373,898 12,819 Park maintenance 1,855,699 1,887,654 2,045,424 (157,770) Capital outlay 908,000 1,711,000 518,076 1,192,924

Total expenditures 19,324,282 20,976,307 18,476,117 2,500,190

(DEFICIENCY) EXCESS OF REVENUES (UNDER) OVER EXPENDITURES (787,268) (2,439,293) (42,566) 2,396,727

OTHER FINANCING SOURCES (USES): Transfers from other funds 875,000 875,000 518,772 (356,228) Transfers to other funds (87,732) (139,114) (599,114) (460,000)

Total other financing sources (uses) 787,268 735,886 (80,342) (816,228)

NET CHANGE IN FUND BALANCES - (1,703,407) (122,908) 1,580,499

FUND BALANCE—Beginning of year 8,953,858 8,953,858 8,953,858 -

FUND BALANCE—End of year 8,953,858$ 7,250,451$ 8,830,950$ 1,580,499$


Budgeted Amounts

- 42 -


STATEMENT OF NET POSITION—PROPRIETARY FUNDSAS OF DECEMBER 31, 2019

SanitaryASSETS Water Sewer Inspections Airport

CURRENT ASSETS:Cash and cash equivalents 11,515,770$ 11,341,432$ 1,336,332$ 2,418,863$ Receivables—net:

Billed 174,451 131,634 - - Unbilled 527,885 398,179 - - Other 16,360 213,601 2,826 1,557

Due from other governmental units - - - 220,825 Prepaid items 1,567 1,604 1,635 40 Accrued interest on investments - - - -

Inventories 249,679 - - -

Total current assets 12,485,712 12,086,450 1,340,793 2,641,285

PROPERTY AND EQUIPMENT—CAPITAL ASSETS (Note 3):Nondepreciable:

Land 16,600 11,900 - 458,840 Collections - - - - Construction in progress 1,180,926 1,240,836 - 134,278

Depreciable: Buildings 7,877,257 5,742,387 - 2,077,271 Improvements other than buildings 11,519,222 21,061,862 - 14,123,979 Machinery and equipment 2,806,730 1,375,747 101,100 252,064 Infrastructure 7,205,647 7,501,630 - - Books - - - -

Accumulated depreciation (15,440,339) (19,970,943) (75,518) (4,334,478)

Total capital assets 15,166,043 16,963,419 25,582 12,711,954

TOTAL ASSETS 27,651,755 29,049,869 1,366,375 15,353,239

DEFERRED OUTFLOWS OF RESOURCES:

Deferred outflow - pension 101,650 152,608 35,366 -

LIABILITIES AND NET POSITION

CURRENT LIABILITIES:Accounts payable 127,161 211,233 10,172 3,730 Cash written against future deposits - - - - Accrued salaries and compensated absences 390,980 473,573 97,898 49,373 Bonds payable - 355,000 - 110,000 Accrued interest payable - 45,188 - 5,143 Due to other funds - - - - Unearned revenue 699 - 3,000 - Outstanding and incurred, but not reported claims - - - -

Total current liabilities 518,840 1,084,994 111,070 168,246 NONCURRENT LIABILITIES:Net pension liability 413,139 525,707 160,022 - Revenue bonds payable (net of unamortized premiums and discounts) - 3,794,843 - 477,525

Total noncurrent liabilities 413,139 4,320,550 160,022 477,525

Total liabilities 931,979 5,405,544 271,092 645,771

DEFERRED INFLOWS OF RESOURCES:

Deferred inflow - pension 112,186 157,420 43,001 -

NET POSITION:Net investment in capital assets 15,166,043 12,813,576 25,582 12,124,429 Restricted for (Note 8):

Commitments 179,000 518,496 29,089 - Bond requirements - 429,690 - 122,000 Internal service funds - - - -

Unrestricted 11,364,197 9,877,751 1,032,977 2,461,039

TOTAL NET POSITION 26,709,240$ 23,639,513$ 1,087,648$ 14,707,468$

Adjustment to reflect the consolidation of internal service fund activities related to enterprise fundsNet position of business-type activities.


- 43 -

GovernmentalActivities—

Public Storm InternalTransportation Recreation Library Sewer Total Service Funds

950,382$ - $ 184,410$ 1,642,193$ 29,389,382$ 17,584,755$

- - - - 306,085 - - - - - 926,064 -

64,634 - 7 18,719 317,704 788 138,342 6,679 4,789 31,535 402,170 -

502 1,583 583 1,853 9,367 - - - - - - - - - - - 249,679 -

1,153,860 8,262 189,789 1,694,300 31,600,451 17,585,543

- - 5,286 363,193 855,819 - - - 175,800 - 175,800 - - 210,751 - - 2,766,791 -

211,455 1,705,842 466,844 - 18,081,056 - 62,746 2,115,540 230,805 - 49,114,154 -

954,013 146,037 49,425 50,000 5,735,116 - - - - 3,613,036 18,320,313 - - - 460,038 - 460,038 -

(741,236) (2,952,901) (809,859) (1,612,569) (45,937,843) -

486,978 1,225,269 578,339 2,413,660 49,571,244 -

1,640,838 1,233,531 768,128 4,107,960 81,171,695 17,585,543

- 95,449 125,174 - 510,247 5,902,439

53,208 45,136 32,831 12,679 496,150 313,592 - 61,724 - - 61,724 - 240 230,496 246,017 18,346 1,506,923 2,788,226 - - - - 465,000 - - - - - 50,331 - - - 90,000 - 90,000 - - 11,413 2,000 - 17,112 - - - - - - 148,000

53,448 348,769 370,848 31,025 2,687,240 3,249,818

- 448,431 446,691 - 1,993,990 8,616,217 - - - - 4,272,368 -

- 448,431 446,691 - 6,266,358 8,616,217

53,448 797,200 817,539 31,025 8,953,598 11,866,035

- 116,757 123,840 - 553,204 8,362,278

486,978 1,225,269 578,339 2,413,660 44,833,876 -

188,597 4,000 75,500 19,500 1,014,182 - - - - - 551,690 - - - - - - 14,335,725

911,815 (814,246) (701,916) 1,643,775 25,775,392 (11,076,056)

1,587,390$ 415,023$ (48,077)$ 4,076,935$ 72,175,140 3,259,669$

5,894 72,181,034$

- 44 -


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION—PROPRIETARY FUNDSFOR THE YEAR ENDED DECEMBER 31, 2019

Sanitary

Water Sewer Inspections Airport

OPERATING REVENUES: Water sales 3,358,379$ - $ - $ - $ Sewer and storm sewer charges - 3,261,494 - - Permits and licenses - - 829,590 - Athletic fees and memberships - - - - Fares and passes - - - - Rents - - - 27,580 Charges to city departments - - - - Other charges and services 97,158 42,526 16,133 - Tap fees 18,460 18,460 - - Library sales - - - - Refunds and reimbursements - - - - Other - - - 1,835

Total operating revenues 3,473,997 3,322,480 845,723 29,415

OPERATING EXPENSES: Salaries and employee benefits 869,881 1,041,895 441,003 100,643 Health insurance stop-loss premium - - - - Health insurance claims and fees - - - - Contractual services 526,914 495,721 99,032 56,718 Supplies 436,846 247,716 4,156 12,604 Maintenance of equipment 45,049 107,184 - - Utilities 211,416 257,987 - 10,189 Depreciation 762,144 915,107 15,141 732,596 Other expense 50 - - -

Total operating expenses 2,852,300 3,065,610 559,332 912,750

OPERATING INCOME (LOSS) 621,697 256,870 286,391 (883,335)

NONOPERATING REVENUES (EXPENSES): General property taxes - - - 163,889 Contributions - - - 127,350 Investment earnings 231,838 242,081 24,609 43,803 Intergovernmental revenues:

Federal grants - - - 177,732 State market value credits and LGA - - - 110,680 State grants - - - 55,977 County - - - -

Interest expense (567) (109,313) - (12,472) Other revenue 13,799 14,561 - - Other expense (1,150) (2,675) - (4,944)

Nonoperating (expenses) revenues 243,920 144,654 24,609 662,015

INCOME (LOSS) BEFORE TRANSFERS 865,617 401,524 311,000 (221,320)

CAPITAL CONTRIBUTIONS

TRANSFERS IN - - - -

TRANSFERS OUT - - - -

INCREASE (DECREASE) IN NET POSITION 865,617 401,524 311,000 (221,320)

NET POSITION—Beginning of year 25,843,623 23,237,989 776,648 14,928,788

NET POSITION—End of year 26,709,240$ 23,639,513$ 1,087,648$ 14,707,468$


- 45 -


Public Storm Internal

Transportation Recreation Library Sewer Total Service Fund

- $ - $ - $ - $ 3,358,379$ - $ - - - 408,663 3,670,157 - - - - - 829,590 - - 521,019 - - 521,019 -

131,911 - - - 131,911 - - - - - 27,580 - - - - - - 2,683,153

117,897 - 1,133 - 274,847 880,715 - - - - 36,920 - - - 19,960 - 19,960 - - - - - - 298,581 - - - - 1,835 -

249,808 521,019 21,093 408,663 8,872,198 3,862,449

14,724 1,317,443 851,645 101,817 4,739,051 1,398,894 - - - - - 431,625 - - - - - 1,525,089

646,473 276,637 159,788 95,025 2,356,308 652,217 166,980 115,698 81,266 101 1,065,367 - 76,193 38,543 1,977 - 268,946 - 1,733 157,321 20,765 - 659,411 -

123,280 112,074 116,714 76,337 2,853,393 - 19,984 208 - - 20,242 -

1,049,367 2,017,924 1,232,155 273,280 11,962,718 4,007,825

(799,559) (1,496,905) (1,211,062) 135,383 (3,090,520) (145,376)

- 647,478 464,184 - 1,275,551 - - 99,328 12,095 - 238,773 -

20,049 - 977 31,757 595,114 229,613

125,195 - - - 302,927 - - 690,000 379,600 - 1,180,280 -

714,995 221,895 - 31,535 1,024,402 - - 6,320 229,672 - 235,992 - - - - - (122,352) -

2,553 - - - 30,913 - - - 40 - (8,729) -

862,792 1,665,021 1,086,568 63,292 4,752,871 229,613

63,233 168,116 (124,494) 198,675 1,662,351 84,237

- 47,459 10,159 - 57,618 460,004

- - - (81,055) (81,055) (536,221)

63,233 215,575 (114,335) 117,620 1,638,914 8,020

1,524,157 199,448 66,258 3,959,315 70,536,226 3,251,649

1,587,390$ 415,023$ (48,077)$ 4,076,935$ 72,175,140$ 3,259,669$

- 46 -


STATEMENT OF CASH FLOWS—PROPRIETARY FUNDS


SanitaryWater Sewer Inspections Airport

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 3,425,195$ 3,263,686$ 851,507$ (171,632)$ Payments to employees (821,738) (969,292) (425,119) (96,599) Payments to other funds (128,100) - (60,000) - Payments to suppliers (1,109,653) (1,212,428) (43,395) (97,691) Service charges (50) - - -

Net cash provided by (used in) operating activities 1,365,654 1,081,966 322,993 (365,922)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: County grants - - - - Unearned revenue-increase (decrease) - - - (280) Due to (from) other funds - - - (53,000) Federal grants - - - 177,732 State grants - - - 55,977 State LGA and market value credits - - - 110,680 Taxes - - - 163,889 Contributions - - - 127,350 Transfers from other funds - - - - Transfers to other funds - - - - Other (6,717) (7,719) - 618 Cash written against future deposits - - - -

Net cash provided by (used in) noncapital financing activities (6,717) (7,719) - 582,966

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (1,537,956) (2,899,288) - (153,936) Federal grants - - - - State grants - - - - Interest paid on capital debt (3,400) (113,625) - (13,113) Other fiscal agent charges 8,865 9,065 - (4,944) Payments on capital debt (340,000) (345,000) - (110,000) Proceeds from capital debt - - - - Restriction of proceeds from capital debt - - - - Contributions - - - -

Net cash provided by (used in) capital & related financing activities (1,872,491) (3,348,848) - (281,993)

CASH FLOWS FROM INVESTING ACTIVITIES—Interest received 231,838 242,081 24,609 43,803

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (281,716) (2,032,520) 347,602 (21,146)

CASH AND CASH EQUIVALENTS—Beginning of year 11,797,486 13,373,952 988,730 2,440,009

CASH AND CASH EQUIVALENTS—End of year 11,515,770$ 11,341,432$ 1,336,332$ 2,418,863$

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) 621,697$ 256,870$ 286,391$ (883,335)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 762,144 915,107 15,141 732,596 Changes in assets and liabilities: Accounts payable (28,121) (103,820) (206) (18,180)

Deferred outflow - pension 73,933 92,416 36,966 - Net pension liability 6,316 7,895 3,158 - Deferred inflow - pension (64,730) (80,912) (32,365) -

Compensated absences 24,419 39,783 2,814 3,179 Customer receivables (47,703) (57,421) 6,333 (201,047) Inventory 10,593 - - - Other accrued liabilities - - - - Salaries and benefits payable 7,106 12,048 4,761 865

Net cash provided by (used in) operating activities 1,365,654$ 1,081,966$ 322,993$ (365,922)$


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Public Storm InternalTransporation Recreation Library Sewer Total Service Funds

256,115$ 527,009$ 19,682$ 372,761$ 8,544,323$ 2,592,506$ (14,920) (1,284,731) (816,571) (100,015) (4,528,985) -

- - - - (188,100) - (920,256) (594,271) (261,611) (83,592) (4,322,897) (4,163,193)

- - - - (50) 1,372,454

(679,061) (1,351,993) (1,058,500) 189,154 (495,709) (198,233)

- 6,320 229,672 - 235,992 - - 4,246 2,000 - 5,966 (66,208)

(50,775) - (15,000) - (118,775) 153,000 125,195 - - - 302,927 - 714,995 221,895 - 31,535 1,024,402 -

- 690,000 379,600 - 1,180,280 - - 647,478 464,184 - 1,275,551 - - - - - 127,350 - - 47,459 10,159 - 57,618 360,004 - - - (81,055) (81,055) (536,221) - 99,328 12,095 - 97,605 - - (51,048) - - (51,048) -

789,415 1,665,678 1,082,710 (49,520) 4,056,813 (89,425)

2,553 (313,685) (57,907) - (4,960,219) - - - - - - - - - - - - - - - - - (130,138) - - - - - 12,986 - - - - - (795,000) - - - - - - - - - - - - - - - - - - -

2,553 (313,685) (57,907) - (5,872,371) -

20,049 976 31,757 595,113 229,613

132,956 (32,721) 171,391 (1,716,154) (58,045)

817,426 - 217,131 1,470,802 31,105,536 17,642,800

950,382$ - $ 184,410$ 1,642,193$ 29,389,382$ 17,584,755$

(799,559)$ (1,496,905)$ (1,211,062)$ 135,383$ (3,090,520)$ (145,376)$

123,280 112,074 116,714 76,337 2,853,393 -

(8,893) (5,863) 2,185 11,533 (151,365) (181,808) - 92,416 73,933 - 369,664 2,927,901 - 7,895 6,316 - 31,580 259,241 - (80,912) (64,730) - (323,649) (3,231,603) - 4,894 10,517 1,374 86,980 -

6,306 7,363 (312) (35,901) (322,382) (304) - - - - 10,593 - - - - - - 173,716

(195) 7,045 7,939 428 39,997 -

(679,061)$ (1,351,993)$ (1,058,500)$ 189,154$ (495,709)$ (198,233)$

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STATEMENT OF FIDUCIARY NET POSITIONCUSTODIAL FUND—TOURISM PROMOTIONAS OF DECEMBER 31, 2019

ASSETS—Cash and cash equivalents 27,936$

Accounts receivable—total assets 21,008

Total assets 48,944

LIABILITIES—

Accounts payable—total liabilities 48,944

NET POSITION—

Restricted for Tourism promotion-

TOTAL NET POSITION - $


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STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONCUSTODIAL FUND—TOURISM PROMOTIONAS OF DECEMBER 31, 2019

ADDITIONS—Lodging tax collections for other entity 399,228$ DEDUCTIONS—Payments of lodging tax to other entity 399,228

CHANGE IN FIDUCIARY NET POSITION -

NET POSITION—Beginning of year -

NET POSITION—End of year - $


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NOTES TO BASIC FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2019

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Winona, Minnesota (the “City”), was incorporated on March 6, 1857, by the Minnesota territorial legislature. On October 1, 1968, the City adopted the home rule charter and operates under a Council-Manager form of government. The City provides the following services, as authorized by its charter: public safety (police and fire); highways and streets; sanitation; public transportation; culture-recreation; public improvements; planning and zoning; water and sewer; and general administrative services.

The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or GAAP) as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the more significant accounting policies:

A. Financial Reporting Entity of the City

In accordance with GASB Statement No. 61, The Financial Reporting Entity: Omnibus; an amendment of GASB Statements No.14 and No. 34, the City’s financial statements include all funds, organizations, institutions, agencies, departments, and offices of the City and the City’s component unit. The component unit discussed below is included in the City’s reporting entity because of the significance of its operational or financial relationship with the City.

The City is considered financially accountable for a component unit if it appoints a voting majority of the organization’s governing body, and it is able to impose its will on the organization by significantly influencing the programs, projects, activities, or level of services performed or provided by the organization, or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the City.

As a result of applying the component unit definition criteria above, certain organizations have been defined in accordance with GASB Statement No. 61, The Financial Reporting Entity: Omnibus; an amendment of GASB Statements No. 14 and No. 34 and are presented in this report as listed below:

Blended Component Units—Reported as if they were part of the City

Discretely Presented Component Units—Entails reporting the component unit financial data in a column separate from the financial data of the City

Related Organizations—The relationship of the City with the entity is disclosed

Joint Ventures and Jointly Governed Organizations—The relationship of the City with the entity is disclosed

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For each of the categories above, the specific entities are identified as stated below:

Blended Component Units:

The City has no blended component units.

Discretely Presented Component Units:

Port Authority of Winona:

The Port Authority of Winona (“Port Authority”) was established by the City Council in 1968 to maintain and operate the river-port of the City. In the late 1970s, the Port Authority commenced an active role as a facilitator for land acquisitions and improvements and as a promoter of community economic development. The Port Authority is governed by commission members who are directly appointed by the Mayor and confirmed by the City Council. Subject to the approval of the City Council, the Port Authority may issue bonds for public improvements and land development. The Port Authority’s principal activity is financing building activity exclusively for the City, and it is considered a component unit of the City.

Related Organizations:

Housing and Redevelopment Authority of Winona:

Housing and Redevelopment Authority of Winona (HRA) activities are limited to operating Department of Housing and Urban Development-sponsored projects and grants. No local financing is involved; thus, the City Council is not involved in financial oversight. Additionally, other than an irrevocable appointment by the Mayor of the HRA Board (four-year term and only one out of five HRA Board Members are from the City Council), the City exercises no control in the areas of budgeting, staff appointment, or accountability for fiscal matters. Accordingly, the HRA does not qualify as a component unit of the City’s basic financial statements, and the related financial statements have not been included in this report.

Complete financial statements for the individual component unit and the related organization may be obtained at the following addresses:

Port Authority of Winona Housing and Redevelopment c/o City of Winona, City Hall Authority of Winona 207 Lafayette Street, P.O. Box 378 1756 Kraemer Drive, Suite 100 Winona, MN 55987 Winona, MN 55987

Joint Ventures and Jointly Governed Organizations:

The City was not part of any joint venture or jointly governed organization during 2019.

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 unit, the Port Authority. 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. Interfund services provided and used are not eliminated in the process of consolidation.

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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. 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, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. (The accrual basis of accounting is used for the custodial fund, the custodial fund has no measurement focus.) 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 for 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.

Major governmental funds—The City reports the following major governmental funds:

General Fund—The General Fund is the primary operating fund of the City. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Permanent Improvement Revolving (PIR) Bond Fund—The PIR Bond Fund is established to account for the collection of assessments from benefited properties for the retirement of debt. The property owners are assessed their share of the costs of the benefit, according to City policy. Interest is charged on the unpaid assessments.

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P.I.R. Construction Fund—The P.I.R. Construction Fund is established to finance public improvements. Expenditures made from this fund are for improvements, the obligation for which is payable wholly or partially from the proceeds of special assessments levied upon property specifically benefited by the improvements.

City Equipment Fund—Established to account for the proceeds of the 2011A and 2006A General Obligation Equipment Certificates used to purchase equipment and vehicles for the police, fire, emergency management, streets and park maintenance/recreation departments.

Bud King Ice Arena Fund—Established to account for the updates to the ice arena equipment project.

Street Reconstruction Fund—Established to account for property tax, state grants and other revenues to finance the annual street reconstruction project within the City.

Major proprietary funds—The City reports the following major proprietary funds:

Water Fund—The Water Fund is established to account for the provision of water services to the residents and to commercial and industrial establishments of the City. All activities necessary to provide this service are accounted for in this fund, including, but not limited to, administrative, operations, maintenance, financing, and related debt service.

Sanitary Sewer Fund—The Sanitary Sewer Fund is established to account for the provision of sewage disposal services to the residents and to commercial and industrial establishments of the City. All activities necessary to provide this service are accounted for in this fund, including, but not limited to, administrative, operations, maintenance, financing, and related debt service.

Inspections Fund—The Inspections Fund is established to account for the revenues and expenses associated with the enforcement of State of Minnesota Codes (building, plumbing, and mechanical), the City’s ordinances, and other specific laws.

Airport Fund—The Airport Fund is established to account for the revenues and the expenses of the Winona Municipal Airport.

Public Transportation Fund—The Public Transportation Fund is established to account for the revenues and the expenses of the Winona Transit Service.

Recreation Fund—The Recreation Fund is established to account for the revenues and the expenses of the City’s recreation programs, the Winona Senior Friendship Center, the Aquatic Center, park administration, and the Winona Municipal Band.

Library Fund—The Library Fund is established to account for the revenues and the expenses relating to the City-owned library.

Storm Sewer Fund—The Storm Sewer Fund is established to account for the revenues and the expenses of the City’s storm sewer system.

Other funds—The City reports the following fund types:

Permanent Funds—The permanent funds (included in other nonmajor governmental funds) are used to report resources that are legally restricted to the extent that only earnings, and

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not principal, may be used for purposes that support the City’s programs. These funds include the following: Bell Art Endowment; Laird and Bell Endowment; C. M. Youman Memorial; H.C. Garvin Winona Civic; Dr. C. A. Rohrer; Leonhard Fried Educational; and the Mielimonka Library.

Internal Service Funds—The internal service funds account for the services of insurance, benefits, risk management, equipment, facilities and pension liabilities provided to other departments of the City on a cost reimbursement basis. These funds include the following: Health Insurance; Law Enforcement Labor Services (LELS); Employee Benefit; Risk Management; Equipment Replacement; Facilities; Infrastructure Replacement; Park Revolving; Pension-Coordinated; and Pension-Police and Fire.

Tourism Promotion Custodial Fund—The Tourism Promotion Custodial Fund accounts for the lodging tax paid to the City, and the amount of lodging tax paid out.

As a general rule, the effect of interfund activity has been eliminated from the government-wide basic financial statements. Interfund services provided and used are not eliminated in the process of consolidation.

Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues, rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the 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 of capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.

D. Budgets and Budgetary Accounting

Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund and certain Special Revenue Funds (Senior Advocacy Program Fund for the primary government), and Capital Project Funds (Municipal State Aid Fund, Dike Construction Fund, and the Permanent Improvement Revolving Construction Fund, all of which are part of the primary government). All annual appropriations lapse at fiscal year-end.

The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.

The budget is legally enacted through passage of a resolution.

The original adopted budgets may be amended by the City Council. Budget amounts are as originally adopted, as revised by approved transfers, or as amended by the City Council. (A

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proposed amendment to the budget is presented to the City Council as an agenda item. The agenda item is to include the amendment amount, the reason for the amendment, and the source of the money to fund the amendment.)

The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level.

The City Council has given authority to the following: the City Manager may authorize transfers of budgeted amounts between departments (of the same Director/Department Head) within any funds, and only the City Council may authorize the transfers of budgeted amounts between departments (which are not under the same Director/Department Head) within any fund, transfers of budgeted amounts between funds, and budget amendments.

During the year there was a net increase of $1,703,407 in appropriations between the General Fund original and final amended budget. Listed below is the component of the increase:

$1,703,407 was added to various departments for encumbrances from December 31, 2018;

Spending control is established by the amount of expenditures budgeted for the fund, but management control is exercised at the departmental level.

Encumbrance accounting is employed at the fund level. Encumbrances, which consist of purchase orders outstanding at year-end, are reported as reservation of fund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent fiscal year.

E. Cash, Cash Equivalents, and Investments

Cash balances from all funds are combined and invested to the extent available in certificates of deposit, commercial paper, and similar investments (see Note 2).

Investment earnings are allocated to the respective funds on the basis of applicable cash balance participation by each fund. Investments are stated at fair value, based upon quoted market prices at the reporting date (see Note 2).

The City conforms to GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governmental Entities That Use Proprietary Fund Accounting. For purposes of the statement of cash flows, the proprietary funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary funds have original maturities of 90 days or less; therefore, the entire balance in such fund types is considered cash or cash equivalents.

The City has adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Under this statement, investments are carried at fair value. Changes in fair value of securities in the City’s investment portfolio are recorded as a change in fair value of investments in the City’s fund financial statements and within general revenues in the government-wide financial statements.

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F. Interfund Receivables/Payables

During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as due from other funds or due to other funds (see Note 7).

G. Inventories and Prepaid Items

Inventories are stated at cost, on a first-in, first-out basis. The cost of inventory is recorded as an expense when consumed (i.e., consumption method).

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 consumption method is the treatment accorded prepaid items in the governmental funds.

H. Funds Held by Others

None for the City of Winona or the Port Authority during 2019.

I. Restricted Assets

Restricted net position results from contributions whose use is limited by donor-imposed stipulations that either expire by passage of time, or can be fulfilled and removed by actions of the City pursuant to these stipulations. Net position may also be restricted for use in future periods or used for specified purposes, such as capital projects in the case of proceeds from enterprise fund revenue bonds. Additionally, certain contributions whose use is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by the City’s actions, have been reported as restricted net position of permanent funds. Investment earnings on the net position to be maintained in perpetuity are included as restricted net position, and are included in Note 8 as expendable permanent funds in the restricted net position.

J. Capital Assets

Capital assets, which include land, buildings, machinery and equipment, and infrastructure, are reported in the applicable governmental or business-type activity columns in the government-wide financial statements. The capitalization threshold for individual capital assets is $15,000. The capitalization threshold for the City’s infrastructure is $50,000. Library books are capitalized on an annual group basis when the total purchase of books is $15,000 or greater. Capital assets purchased with a Federal Grant have a capitalization threshold at the current Federal threshold level.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Capital outlays are recorded as expenditures in the City’s fund financial statements, which use the modified accrual basis of accounting. Capital outlays are capitalized in the City’s government-wide statement of net position, which uses the full accrual basis of accounting. All capital assets are recorded at historical cost or estimated historical cost if actual cost was not available. Donated capital assets are valued at the fair market value as of the date received. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement should be reported at acquisition value rather than fair value.

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Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:

Asset Years

Buildings 20–75 Building improvements 20 Improvements 10–100 Public domain infrastructure 15–40 Water mains 25–50 Sanitary sewer mains 50 Storm sewer mains 50 Furniture 10 Machinery and equipment 3–25 Books (library) 5

K. Compensated Absences Benefits and Pensions

Compensated Absences Benefits: It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation and the portion of sick pay allowable as separation pay is accrued when incurred in the government-wide and proprietary fund financial statements. The amounts are calculated based on hours actually earned at the current rate of pay.

Pensions: For purposes of measuring the net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to or 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. See Note 6 for a detailed description of the PERA plans.

L. Long-Term Obligations

Long-term obligations are recorded in the City’s government-wide statement of net position when they become a liability of the City. Long-term obligations are recognized as a liability of a governmental fund when due. Long-term obligations expected to be financed from proprietary funds are accounted for in those funds.

M. Fund Equity

In the government-wide financial statements, governmental funds report restrictions of fund balance generally when constraints are placed on the use of resources that are either externally imposed, or imposed by law or regulations (see Note 8).

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Included in the Statement of Net Position—Net Position section—Restricted for Other Purposes are the items as listed below:

Governmental Activities Amount

General Fund 61,238$ Risk Management 1,288,010 LELS Program 262

Total Governmental 1,349,510$

Business-Type Activities

Projects 1,014,182$

Component Unit

Port Authority projects 5,563,059$

The majority of the commitments are externally imposed.

N. Bond Discounts

In governmental fund types, bond discounts and issuance costs are recognized as expenditures in the current period. Bond discounts for proprietary fund types are deferred and amortized over the term of the bonds using the bonds-outstanding method, which approximates the effective interest method. In proprietary fund types, bond discounts are presented as a reduction of the face amount of bonds payable, and issuance costs are recorded as deferred charges.

O. Interfund Transactions

Interfund services provided are accounted for as revenues and expenditures. Transactions that constitute reimbursements to a fund for expenditures initially made from it that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Other interfund transactions are reported as transfers in (out).

Interfund transactions within the respective categories of governmental activities and business-type activities in the government-wide statement of activities are eliminated. The internal balances caption on the government-wide statement of net position represents interfund receivables or payables between the two types of activities, governmental and business-type.

P. Property Taxes

Property tax levies are set by the City Council in December of each year, and are certified to Winona County (the “County”) for collection in the following year. In Minnesota, counties act as collection agents for all property taxes.

The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Within the fund financial statements, property taxes are accrued and recognized as revenue, excluding delinquent taxes received over 60 days after year-end.

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Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15 (November 15 for agricultural property). The County provides tax settlements to cities and other taxing districts three times a year, in July, December, and January.

In the fund financial statements, taxes that remain unpaid at December 31 are classified as delinquent taxes receivable and are fully offset by unavailable revenue, because they are not known to be available to finance current expenditures. No allowance for uncollectible taxes has been provided because such amounts are not expected to be material.

Q. Subsequent Event

An update on Coronavirus (COVID-19) in Winona County, where the City of Winona is located, is as follows: as of May 12, 2020, there were 71 confirmed cases and 15 deaths. All but one of the deaths is from one Long-term Care Facility. Located within the City of Winona, Winona Health has test kits available for anyone that would like to be tested. Winona Health is monitoring the COVID-19 situation and, at this time, appears to be contained and manageable. At this time, the impact to the city’s financial statements appears to be low. The city will continue to monitor the situation.

R. New Accounting Pronouncements

The GASB has issued Statement No. 83, Certain Asset Retirement Obligations. The requirements of this Statement are effective for financial statements starting with the fiscal years that end June 30, 2020. The City has determined that the adoption of Statement No. 83 will have no impact on the City’s financial statements.

The GASB has issued Statement No. 84, Fiduciary Activities. The requirements of this Statement are effective for financial statements starting with the fiscal years that end December 31, 2020. The City has determined that the adoption of Statement No. 84 will have no material effect to the City’s financial statements.

The GASB has issued Statement No. 87, Leases. The requirements of this Statement are effective for financial statements starting with the fiscal years that end June 30, 2021. The City is evaluating the requirements of this statement to determine the impact on the City’s financial statements.

The GASB has issued Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The requirements of this Statement are effective for financial statements starting with the fiscal years that end June 30, 2020. The City has determined that the adoption of Statement No. 88 will have no impact on the City’s financial statements.

The GASB has issued Statement No. 89, Accounting for Interest Cost Incurred before the End of the Construction Period. The requirements of this Statement are effective for financial statements starting with the fiscal years that end December 31, 2021. The City is evaluating the requirements of this statement to determine the impact on the City’s financial statements.

The GASB has issued Statement No. 90, Majority Equity Interests. The requirements of this Statement are effective for financial statements starting with the fiscal years that end December 31, 2020. The City has determined that the adoption of Statement No. 90 will have no impact on the City’s financial statements.

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2. CASH, CASH EQUIVALENTS, AND INVESTMENTS

A. Deposits

In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City’s Investment Policy, all of which are members of the Federal Reserve System. A portion of the City’s investments is in certificates of deposit, as authorized by Minnesota Statutes. In accordance with GASB Statement No. 3, Deposits with Financial Institutions, Investments (Including Repurchase Agreements), and Reverse Repurchase Agreements, as amended by GASB Statement No. 40, Deposit and Investment Risk Disclosures—an Amendment of GASB Statement No. 3, such investments are to be classified as deposits.

Minnesota Statutes require that all of the City’s deposits be protected by insurance, surety bonds, or collateral. The fair value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Minnesota Statutes require that securities pledged as collateral can only be safely kept in either a restricted account at the Federal Reserve or at a financial institution not owned or controlled by the financial institution furnishing the collateral.

Deposit balances at December 31, 2019, for the City and its component unit are as follows:

Bank CarryingDeposit Type Balances Amount

Insured or collateralized with securities held by the City or its agent in the City's name 7,512,380$ 6,601,881$

Primary government 7,061,637$ 6,205,768$

Component unit 450,743$ 396,113$

B. Investments

Both the Minnesota Statutes and the City’s Investment Policy approve of the following investment instruments for the City and its component unit:

Governmental bonds, notes, bills, and other federal government instruments

State bonds and state agencies (General Obligations or Revenue)—limited investment instruments

Local government bonds (General Obligations or Revenue)—limited investment instruments

Repurchase agreements—limited investment instruments

Bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System

Commercial paper issued by United States corporations or their Canadian subsidiaries that was rated in the highest quality category by at least two nationally recognized rating agencies and matures in 270 days or less

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Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist only of domestic securities

Primary Government

The City’s balances at December 31, 2019, are as follows:

Carrying/Investment Type Fair Value

U.S. treasury securities 49,011,460$

Money market mutual funds 9,455,236

Total investments, restricted cash, and escrow deposits 58,466,696

Total deposits (Note 2.A.) 6,205,768

Total deposits, investments, restricted cash, and escrow accounts 64,672,464$

A reconciliation to the basic financial statements at December 31, 2019, is as follows:

Governmental activities: Governmental funds—cash and cash equivalents 17,351,501$ Governmental funds—restricted investments 380,614 Internal service funds—cash and cash equivalents 17,584,755

Total governmental activities 35,316,870

Business-type activities: Enterprise funds—cash and cash equivalents 29,327,658 Enterprise funds—restricted investments -

Total business-type activities 29,327,658

Custodial Fund - cash and cash equivalents 27,936

Total 64,672,464$

As of December 31, 2019, the City had the following investments and weighted-average maturity in number of years:

Weighted-Average

Investment Type Fair Value Maturity (Years)

U.S. Treasury Securities (excluding escrow account) 49,011,460$ 0.76

Total fair value 49,011,460$

Portfolio weighted average maturity 0.76

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Interest Rate Risk—The City does not have a formal policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that the interest rate risk may be minimized or eliminated by (1) structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity (the City’s policy is to hold the investments to maturity), and (2) by investing operating funds primarily in shorter-term securities or money market funds.

Credit Risk—The U.S.’s AA+ credit rating was affirmed by Standard & Poor’s in June 2014. Minnesota state law limits investments in commercial paper to that which is issued by a U.S. corporation rated in the highest quality category by at least two nationally recognized rating agencies, and matures in 270 days or less. (The City does not hold any commercial paper as of December 31, 2019.) Also, as of December 31, 2019, the primary government and the component unit had $12,089,909 invested in a money market fund with a rating of AAAm/Aaa and $771,797 was invested in a money market fund that is not rated for the fund itself, but the underlying investments are all rated or insured/collateralized as per Minnesota Statutes.

Concentration of Credit Risk—The City’s investment policy states that it is the City’s preference to limit to no more than 20% of total City investments in any one company for the commercial paper that is purchased. At December 31, 2019, the City does not hold any commercial paper as part of its investment portfolio.

Custodial Credit Risk—Deposits—Minnesota state law requires that to the extent that City funds deposited are in excess of available federal deposit insurance, the City shall require the financial institution to furnish collateral security or a corporate surety bond executed by a company authorized to do business in the State of Minnesota. The total amount of the collateral computed at its market value shall be at least 10% more than the amount on deposit, plus accrued interest at the close of the business. The financial institutions may furnish both a surety bond and collateral aggregating the required amount.

Custodial Credit Risk—Investments—For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City invests in U.S. Treasury Notes, which are backed by the U.S. government.

Maturity dates for securities held in investments, restricted cash and escrow accounts at December 31, 2019, are listed below:

Maturity Year Fair Value

2020 32,986,865$ 2021 16,024,595

Total 49,011,460$

C. Investments – Fair Value Hierarchy

The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are

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significant other observable inputs or quoted prices in markets that are not active; and Level 3 inputs are significant unobservable inputs.

The City has the following recurring fair value measurements as of December 31, 2019:

* U.S. Treasury Obligations of $49.0 million - Valued using quoted prices for similar assets in markets that are not active (Level 2 inputs)

D. Cash written against future deposits

At December 31, 2019, the Recreation Fund has overdrawn their share of the pooled cash and investments. Fund overdrafts of pooled cash and investments are reported as cash written against future deposits.

Component Unit

The component unit’s balances at December 31, 2019, are as follows:

Carrying/Investment Type Fair Value

Money market mutual funds 4,033,045$ Total deposits (Note 2.A.) 396,113

Total deposits and investments 4,429,158$

The maturity date for securities held in investment accounts at December 31, 2019, is listed below:

Maturity Year Fair Value

2020 4,033,045$

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3. CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2019, was as follows:

Beginning EndingBalance Increases Decreases Balance

Governmental activities: Nondepreciable: Land 7,074,361$ 54,135$ - $ 7,128,496$ Construction in progress 7,900,517 387,950 (3,382,732) 4,905,735 Depreciable: Buildings and improvements 6,636,507 3,555,239 - 10,191,746 Machinery and equipment 9,667,530 473,364 (44,432) 10,096,462 Infrastructure: Flood control 33,000,000 - - 33,000,000 Street system 41,611,324 255,649 - 41,866,973 Park 278,000 - - 278,000

Total at historical cost 106,168,239 4,726,337 (3,427,164) 107,467,412

Less accumulated depreciation: Buildings and improvements (4,809,602) (320,844) - (5,130,446) Machinery and equipment (6,328,290) (679,964) 44,432 (6,963,822) Infrastructure: Flood control (27,988,635) (715,909) - (28,704,544) Street system (20,264,765) (1,026,157) - (21,290,922) Park (197,263) (9,444) (206,707)

Total accumulated depreciation (59,588,555) (2,752,318) 44,432 (62,296,441)

Governmental activities capital assets—net 46,579,684$ 1,974,019$ (3,382,732)$ 45,170,971$

Business-type activities: Nondepreciable: Land 855,819$ - $ - $ 855,819$ Collections 175,800 - - 175,800 Construction in progress 1,302,462 2,766,791 (1,302,462) 2,766,791 Depreciable: Buildings and improvements 64,492,373 2,702,836 - 67,195,209 Machinery and equipment 5,571,334 187,700 (23,920) 5,735,114 Books 440,472 57,947 (38,381) 460,038 Infrastructure: Water 6,930,648 275,000 - 7,205,648 Sanitary sewer 7,226,630 275,000 - 7,501,630 Storm sewer 3,613,036 - - 3,613,036

Total at historical cost 90,608,574 6,265,274 (1,364,763) 95,509,085

Less accumulated depreciation: Buildings and improvements (32,144,249) (2,073,940) - (34,218,189) Machinery and equipment (4,422,444) (309,255) 23,920 (4,707,779) Books (300,624) (55,815) 38,381 (318,058) Infrastructure: Water (2,213,077) (190,750) - (2,403,827) Sanitary sewer (2,550,124) (152,296) - (2,702,420) Storm sewer (1,516,233) (71,337) - (1,587,570)

Total accumulated depreciation (43,146,751) (2,853,393) 62,301 (45,937,843)

Business-type activities capital assets—net 47,461,823$ 3,411,881$ (1,302,462)$ 49,571,242$

Primary Government

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Depreciation expense for governmental activities is charged to functions in 2019, as follows:

General government 168,936$ Public safety 1,059,647 Highways and streets 1,219,808 Park maintenance 303,927

Total depreciation expense for governmental activities 2,752,318$

The Governmental activities accumulated depreciation “Increases” column, on the previous page, of $2,752,318, does not include any capital asset transfers between the general fund and the business-type funds.

Depreciation expense for business-type activities charged in 2019, as follows:

Water 762,144$ Sanitary Sewer 915,108 Inspections 15,141 Airport 732,595 Public transportation 123,280 Recreation 112,074 Library 116,714 Storm sewer 76,337

Total depreciation expense for business-type activities 2,853,393$

The Business-type activities accumulated depreciation “Increases” column, on the previous page, of $2,853,393, does not include any capital asset transfers between the general fund and the business-type funds.

Component Unit

Capital asset activity (Port Authority) for the year ended December 31, 2019, was as follows:

Beginning Ending

Balance Increases Decreases Balance

Component unit: Buildings and improvements 1,252,728$ 584,250$ - $ 1,836,978$

Total at historical cost 1,252,728 584,250 - 1,836,978

Less accumulated depreciation: Buildings and improvements (164,943) (25,054) - (189,997)

Total accumulated depreciatio (164,943) (25,054) - (189,997)

Component unit capital assets—net 1,087,785$ 559,196$ - $ 1,646,981$

Component Unit

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Construction in Progress

There are five projects included in the capital assets—construction in progress (in the governmental activities) at December 31, 2019.

Bud King Ice Arena 2,962,744$ Masonic Temple Theatre 1,597,948 Lions Bandshell Playground 195,246 Riverview Drive Project 94,500

Bluff Traverse Project 55,297

4,905,735$

There are five projects included in the capital assets—construction in progress (in the business-type activities) at December 31, 2019. They are as follows:

Water—Jaybee Drive Utility Extension 1,180,926$ Sanitary Sewer—Jaybee Drive Utility Extension 1,179,926 Sanitary Sewer—Lift Station #11 60,910 Airport—Airport SRE Building 134,278 Recreation—Masonic Temple Project 210,751

2,766,791

Total 7,672,526$

Component Unit

There are no projects included in the capital assets—construction in progress (Port Authority) at December 31, 2019.

4. PROPERTIES HELD FOR DEVELOPMENT

The component unit includes an asset called Properties Held for Development. These properties are held for development purposes and are reported at acquisition cost, plus preparation for resale costs not to exceed their net realizable value. The component unit is involved in the acquisition of real property for the purpose of improvement and, after improvement, the resale of real property to local industries.

As of January 1, 2019, there were 35.99 developable acres held for development. During the 2019 year, no property was sold or purchased. There are 35.99 developable acres as of December 31, 2019.

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5. LONG-TERM DEBT

Primary Government

A summary of bonds outstanding at year-end follows:

December 31,Bonds Maturities Rates 2019

Governmental activities: G.O. bonds—supported by taxes 2020–2029 2.0–3.0% 4,300,000$

Total 4,300,000

Business-type activities: Bonds 2020–2024 1.4–3.0% 4,645,000 Add unamortized premium 105,670 Less unamortized discounts (13,302)

Total 4,737,368

Total bonds outstanding 9,037,368$

A summary of changes in bonds payable (at par) during 2019 is as follows:

Beginning Ending Due Within Bonds Balance Issued Retired Balance One Year

Governmental activities: G.O. bonds—supported by taxes 4,670,000$ - $ (370,000)$ 4,300,000$ 385,000$

Total governmental activities 4,670,000 - (370,000) 4,300,000 385,000

Business-type activities 5,440,000 (795,000) 4,645,000 465,000

Total 10,110,000$ - $ (1,165,000)$ 8,945,000$ 850,000$

Debt service requirements to maturity as of December 31, 2019, including interest of $1,182,813, are as follows:

Supported Supported byYear Ending by Property Water and TotalDecember 31 Taxes Sewer Utilities Bonds

2020 491,825$ 579,560$ 1,071,385$ 2021 494,025 581,760 1,075,785 2022 490,075 583,308 1,073,383 2023 489,950 584,192 1,074,142 2024 494,512 584,431 1,078,943 2025-2029 2,458,100 2,296,075 4,754,175

Total 4,918,487$ 5,209,326$ 10,127,813$

General Obligation (G.O.) Bonds

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Year EndingDecember 31 Principal Interest Total Principal Interest Total

2020 385,000$ 106,825$ 491,825$ 465,000$ 114,560$ 579,560$ 2021 395,000 99,025 494,025 480,000 101,760 581,760 2022 400,000 90,075 490,075 495,000 88,308 583,308 2023 410,000 79,950 489,950 510,000 74,192 584,192 2024 425,000 69,512 494,512 525,000 59,431 584,431 2025-2029 2,285,000 173,100 2,458,100 2,170,000 126,075 2,296,075

Total 4,300,000$ 618,487$ 4,918,487$ 4,645,000$ 564,326$ 5,209,326$

Governmental Activities Business-Type Activities

The long-term debt of the primary government is described as follows:

Supported by Property Taxes—The City issues general obligation (G.O.) bonds to provide funds for the construction of major capital improvements having a relatively long life. General obligation bonds have been issued for both governmental and business-type activities. These G.O. bonds are supported by property taxes.

Supported by Water and Sanitary Sewer Utilities—All of the bonds in this category are G.O. Water and Sanitary Sewer Revenue and are recorded as a liability in the appropriate Enterprise Fund. These bonds are intended to be paid first from the revenues of the appropriate Enterprise Fund, and are also backed by the full faith, credit, and taxing authority of the City.

There are limitations and restrictions contained in the bond indentures.

In addition to bond obligations, other debt outstanding at year-end is summarized below:

Interest December 31,Other Debt Maturities Rates 2019

Governmental funds— G.O. Equipment Certificates 2020 2.0 % 445,000$

2021 2.0 % 450,000 2022 2.5 % 460,000 2023 2.5 % 470,000

Total 1,825,000$

Debt service requirements to maturity as of December 31, 2019 including interest of $87,825, listed below for other debt are summarized as follows:

Year EndingDecember 31 Principal Interest Total

2020 445,000$ 36,700$ 481,700$ 2021 450,000 27,750 477,750 2022 460,000 17,500 477,500 2023 470,000 5,875 475,875

1,825,000$ 87,825$ 1,912,825$

G.O. Equipment Certificates

The Primary Government did not issue any bonds or certificates during 2019.

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A summary of changes in the governmental activities long-term debt (Primary Government) follows:

Beginning EndingDebt Balance Issued Retired Balance

Bonds payable 4,670,000$ - $ (370,000)$ 4,300,000$

Other debt 2,260,000 - (435,000) 1,825,000

Total 6,930,000$ - $ (805,000)$ 6,125,000$

A review of improvement bonds for the years 1995–2019 is as follows:

Assessed Total Assessed per Project per

Bonds Issued Document Costs Actual-to-Date

G.O. Improvement, 1995C: 1996 Projects 480,508$ 1,850,882$ 480,508$ 1997 Projects 827,356 1,194,396 827,356 1998 Projects 387,136 525,507 387,136

Total 1,695,000$ 3,570,785$ 1,695,000$

G.O. Improvement, 1998B: 1998 Projects 207,284$ 282,966$ 207,284$ 1999 Projects 1,138,550 1,992,705 1,138,550 2000 Projects 134,743 180,507 134,743

Total 1,480,577$ 2,456,178$ 1,480,577$

G.O. Improvement, 2001A: 2001 Projects 34,605$ 61,612$ 34,605$ 2002 Projects 929,940 1,397,713 718,432 2003 Projects 550,888 683,617 418,090 2004 Projects 1,069,752 1,684,814 1,069,752

Total 2,585,185$ 3,827,756$ 2,240,879$

G.O. Improvement, 2004A: 2004 Projects 245,552$ 532,768$ 245,552$ 2005 Projects 1,766,923 5,783,908 1,766,923 2006 Projects 31,729 79,538 31,729 2007 Projects 43,932 43,932 43,932 2008 Projects 21,026 21,026 21,026 2009 Projects 12,296 12,296 12,296

Total 2,121,458$ 6,473,468$ 2,121,458$

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Component Unit

A summary of bonds outstanding at year-end is as follows:

December 31,Bonds Maturities Rates 2019

Long-term debt—G.O. 2020 2.00% 285,000$

A summary of changes in bonds payable (at par) during 2019 is as follows:

Beginning Ending

Bonds Balance Issued Retired Balance

Long-term (G.O.)—Bonds payable 565,000$ - $ (280,000)$ 285,000$

Debt service requirements to maturity as of December 31, 2019, including interest of $2,850, are listed below for general long-term debt (bonds):

Year EndingDecember 31 Principal Interest Total

2020 285,000$ 2,850$ 287,850$

Total 285,000$ 2,850$ 287,850$

General Obligation

General Obligation Bonds—The G.O. bonds are backed by the full faith, credit, and taxing authority of the City.

There are limitations and restrictions contained in the bond indentures. There are no authorized and unissued bonds for the component unit.

The Component Unit didn’t issue any bonds or certificates during 2019.

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Long-Term Liability Activity

Long-term liability activity for the year ended December 31, 2019, was as follows:

Beginning Ending Due WithinBalance Additions Retirements Balance One Year

Governmental activities: Bonds and certificates payable 6,930,000$ - $ (805,000)$ 6,125,000$ 830,000$

Compensated absences 4,113,834 1,439,716 (1,186,864) 4,366,686 150,000

Total governmental activities 11,043,834 1,439,716 (1,991,864) 10,491,686 980,000

Business-type activities: Bonds and certificates payable 5,440,000 (795,000) 4,645,000 465,000 Compensated absences 1,379,946 437,725 (310,748) 1,506,923 60,000 Other 112,304 (19,937) 92,367 -

Total business-type activities 6,932,250 437,725 (1,125,685) 6,244,290 525,000

17,976,084$ 1,877,441$ (3,117,549)$ 16,735,976$ 1,505,000$

Compensated absences classified as long-term liabilities include unused vacation, compensated time, other post-employment benefit obligation (OPEB) and sick leave estimated to be paid or used by employees for periods ending after December 31, 2019. The Governmental activities - unused vacation liability on December 31, 2019 was $561,377 and increased by $43,054 for December 31, 2019 from December 31, 2018. The Business-type activities - unused vacation was $186,379 at December 31, 2019 and increased by $21,917 at December 31, 2019 from December 31, 2018. (The Net Other Post Employment Benefit Obligation at December 31, 2019 is $1,851,340.) For the governmental activities, compensated absences are generally liquidated by the general fund.

6. PENSION PLANS

A. Defined Benefit Pension Plans—Statewide Public Employees Retirement Association

1. 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). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.

General Employees Retirement Fund (GERF)

All full-time and certain part-time employees of the City are covered by the GERF plan. Members of GERF belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.

Public Employees Police and Fire Fund (PEPFF)

The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local fire relief association that elected to merge with and transfer assets and administration to PERA.

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2. 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.

GERF Benefits

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 or service. Two methods are used to compute benefits for PERA’s Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30, 1989. Under Method 1, the annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first ten years of service and 1.7% of average salary for each remaining year. Under Method 2, the annuity accrual rate is 1.7% of annual salary for each year of service. For members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66.

Annuities, disability benefits, and survivor benefits are increased effective every January. Beginning January 1, 2019, the postretirement increase will be equal to 50% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a reduced prorated increase. For members retiring on January 1, 2024, or later, the increase will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the delay to normal retirement.

PEPFF Benefits

Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years of service up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. A full, unreduced pension is earned when members are age 55 and vested, or for members who were first hired prior to July 1, 1989, when age plus years of service equal at least 90.

Annuities, disability benefits, and survivor benefits are increased effective every January. Beginning January 1, 2019, the postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.

3. Contributions

Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature.

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GERF Contributions

Coordinated Plan members were required to contribute 6.50% of their annual covered salary in calendar year 2019. The City was required to contribute 7.50% for Coordinated Plan members in calendar year 2019. The City expense to the GERF for years ended December 31, 2019, 2018 and 2017 were $555,424, $509,221, and $483,018, respectively. The City's contributions were equal to the required contributions as set by state statute.

PEPFF Contributions

Plan member’s contribution rate increased from 10.80% to 11.30% of their annual covered salary in calendar year 2019. The City’s required contribution increased from 16.20% to 16.95% of pay for PEPFF members in calendar year 2019. The City expense to the PEPFF for the years ended December 31, 2019, 2018 and 2017 were $866,081, $788,511, and $744,865, respectively. The City's contributions were equal to the required contributions as set by state statute.

4. Pension Costs

GERF Pension Costs

At December 31, 2019, the City reported a liability of $5,617,236 for its proportionate share of the GERF's net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million to the fund in 2019. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of the special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $13,080. The net pension liability was measured as of June 30, 2019, 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, 2018 through June 30, 2019, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2019, the City's proportion was .1016%, which was an increase of .0017% from its proportion measured as of June 30, 2018.

For the year ended December 31, 2019, the City recognized pension expense of $519,109 for its proportionate share of the GERF's pension expense. In addition, the City recognized an additional $13,080 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to GERF.

At December 31, 2019, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual economic experience 152,302$ - $ Changes in actuarial assumptions - 429,262 Differences between projected and actual investment earnings 309,555 872,188

Changes in proportion 241,594 - GERF contributions paid subsequent to the measurement date 273,792 -

Totals 977,243$ 1,301,450$

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The cumulative effect of deferred inflows and outflows of resources due to differences between projected and actual investment earnings is a deferred inflow of resources of $562,633. The deferred outflows of resources in the amount of $273,792 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 ending December 31, 2020. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

2020 (155,224)$

2021 (364,919)

2022 (86,907)

2024 9,052

Total (597,998)$

Year Ended December 31,

PEPFF Pension Costs

At December 31, 2019, the City reported a liability of $4,992,979 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2019, 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 of employer payroll paid dates from July 1, 2018 through June 30, 2019, relative to the total employer contributions from all of PERA's participating employers. At June 30, 2019, the City's proportion was .4690% which was an increase of .0208% from its proportion measured as of June 30, 2018. The City also recognized $63,315 for the year ended December 31, 2019 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to PEPFF each year until the plan is 90% funded or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. In addition, the State paid $4.5 million on October 1, 2018 and October 1, 2019 in direct State aid. Thereafter, by October 1 of each year, the State will pay $9 million until full funding is reached or July 1, 2048, whichever is earlier.

For the year ended December 31, 2019, the City recognized a pension expense of $437,414 for its proportionate share of the PEPFF's pension expense.

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At December 31, 2019, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual economic experience 202,831$ 714,020$ Changes in actuarial assumptions 3,904,847 5,220,114 Differences between projected and actual investment earnings 578,564 1,550,502 Changes in proportion 317,292 129,396 PEPFF contributions paid subsequent to the measurement date 431,909 -

Totals 5,435,443$ 7,614,032$

The cumulative effect of deferred inflows and outflows of resources due to differences between projected and actual investment earnings is a deferred inflow of resources of $971,938. The deferred outflows of resources in the amount of $431,909 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, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows:

2020 (265,994)$ 2021 (608,992) 2022 (1,829,139) 2023 60,899 2024 32,728

Total (2,610,498)$

Year Ended December 31,

5. Actuarial Assumptions

The total pension liability in the June 30, 2019 actual valuation was determined using the following actuarial assumptions for both GERF and PEPFF:

Inflation 2.50% per yearActive Member Payroll Growth 3.25% per yearInvestment Rate of Return 7.50%

Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors and disabilitants for all plans were based on the RP-2014 tables for males and females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for retirees are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF.

Actuarial assumptions used in the June 30, 2019 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was completed in 2019. The most recent four-year experience study for PEPFF was completed in

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2016. Economic assumptions were updated in 2018 based on a review of inflation and investment return assumptions.

The following changes in actuarial assumptions occurred in 2019: The mortality projection scale was changed from the MP-2017 to the MP-2018 for both GERF and PEPFF.

The following changes in plan provisions occurred in 2019: The employer supplemental contribution for GERF was changed prospectively, decreasing from $31 million to $21 million per year. The State’s special funding contribution for GERF was changed prospectively, requiring $16 million due per year through 2031. No plan provision changes were made to PEPFF in 2019.

The State Board of Investment, which manages the investments of PERA, prepares an analysis on a regular basis of the reasonableness of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table:

Asset ClassTarget

AllocationLong-Term Expected Real Rate of Return*

Domestic Stocks 35.50% 5.10%Private Markets 25.00% 5.90%Fixed Income 20.00% 0.75%International Equity 17.50% 5.30%Cash Equivalents 2.00% 0.00%

* From PERA's CAFR for the Fiscal Year Ended June 30, 2019

6. Discount Rate

The discount rate used to measure the total pension liability was 7.5% in 2019. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at the rate specified in Minnesota statute. Based on that assumption, the fiduciary net position of the GERF and the PEPFF 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.

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7. Pension Liability Sensitivity

The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate:

Sensitivity of Net Pension Liability at Current Single Discount Rate

General Employees

FundPolice and Fire

Fund

One Point Decrease 6.50% 9,234,434$ 6.50% 10,913,724$ Current Discount Rate 7.50% 5,617,236 7.50% 4,992,979 One Point Increase 8.50% 2,630,521 8.50% 97

8. 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, by writing to PERA, 60 Empire Drive #200, Saint Paul, MN 55103-2088, or by calling (651) 296-7460 or 1-800-652-9026.

9. Funding Status and Progress

Current Funding Ratios

The primary funding objectives of PERA are (1) to establish contribution rates which, when expressed as a percentage of active members’ payroll, will remain level from generation to generation, and (2) to meet the required deadlines for full funding. PERA’s progress toward meeting the full funding objective is displayed on the Schedule of Funding Progress. This report shows the funding levels using the entry age normal actuarial cost method. At the end of fiscal year 2019, the ratio of assets to liabilities of GERF and PEPFF was 78.6% and 87.4% respectively. At the end of fiscal year 2018, the ratio of assets to liabilities of GERF was 78.0% and 87.1% for PEPFF.

Schedule of Funding Progress for GERF (last ten years, in thousands)

Actuarial UAAL as aActuarial Accrued Unfunded Percentage of

Actuarial Value of Liability (AAL) AAL Funded Covered CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b-a) (a/b) (c) [(b-a)/c]

June 30, 2010 13,126,993$ 17,180,956$ 4,053,963$ 76.4 % 4,804,627$ 84.4 %June 30, 2011 13,455,753 17,898,849 4,443,096 75.2 5,079,429 87.5 June 30, 2012 13,661,682 18,598,897 4,937,215 73.5 5,142,592 96.0 June 30, 2013 14,113,295 19,379,769 5,266,474 72.8 5,246,928 100.4 June 30, 2014 15,644,540 21,282,504 5,637,964 73.5 5,351,920 105.3 June 30, 2015 17,974,439 23,560,951 5,586,512 76.3 5,549,255 100.7 June 30, 2016 18,765,863 24,848,409 6,082,546 75.5 5,773,708 105.3 June 30, 2017 19,916,322 25,615,722 5,699,400 77.8 6,156,985 92.6 June 30, 2018 21,129,746 27,101,067 5,971,321 78.0 6,298,815 94.8 June 30, 2019 21,979,022 27,969,744 5,990,722 78.6 6,523,754 91.8

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Schedule of Funding Progress for PEPFF (last ten years, in thousands)

Actuarial UAAL as aActuarial Accrued Unfunded Percentage of

Actuarial Value of Liability (AAL) AAL Funded Covered CoveredValuation Assets Entry Age (UAAL) Ratio Payroll Payroll

Date (a) (b) (b-a) (a/b) (c) [(b-a)/c]

June 30, 2010 5,188,339$ 5,963,672$ 775,333$ 87.0 % 740,101$ 104.8 %June 30, 2011 5,274,602 6,363,546 1,088,944 82.9 775,806 140.4 June 30, 2012 5,797,868 7,403,295 1,605,427 78.3 794,417 202.1 June 30, 2013 5,932,945 7,304,032 1,371,087 81.2 796,188 172.2 June 30, 2014 6,525,019 8,151,328 1,626,309 80.0 820,333 198.2 June 30, 2015 7,076,271 8,460,477 1,384,206 83.6 845,076 163.8 June 30, 2016 7,385,777 8,417,621 1,031,844 87.7 881,222 117.1 June 30, 2017 7,840,549 9,199,208 1,358,659 85.2 944,296 143.9 June 30, 2018 8,320,094 9,552,804 1,232,710 87.1 976,657 126.2 June 30, 2019 8,661,613 9,909,153 1,247,540 87.4 1,011,421 123.3

B. Defined Contribution Plan—Statewide

There are six Council members of the City covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal.

Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353(D.03), specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes five percent of salary which is matched by the elected official's employer. Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives two percent of employer contributions and twenty-five hundredths of one percent (.0025%) of the assets in each member's account annually.

Total Contributions made by the City during 2019, 2018, and 2017 were:

For the Year Ended: Employee Employer Employee Employer Employee Employer

1,969 1,969 5.0% 5.0% 5.0% 5.0%2,007 2,007 5.0% 5.0% 5.0% 5.0%2,429 2,429 5.0% 5.0% 5.0% 5.0%December 31, 2019

December 31, 2018December 31, 2017

Contribution Amount Required Rate for

Employees & Percentage of

Covered Payroll

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7. INTERFUND RECEIVABLES, PAYABLES, AND TRANSACTIONS

Interfund receivables and payables at December 31, 2019, are listed below for the primary government.

Receivable Fund Payable Fund Amount Purpose

Due to/due from Other Funds

(Primary Government):

General Library 90,000$ [1]

Total 90,000$

[1] The Library Fund will repay the General Fund from available cash.

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Transfers during 2019 were as follows for the primary government. (A brief summary of the transfer activity is at the end of this note.)

Transfers In Transfers Out

Primary GovernmentGovernmental activities:

General (1) 105,000$ 87,732$ General (2) 15,785 3,764 General (3) 66,873 260,000 General (4) 23,199 50,000 General (5) 17,898 50,000 General (6) 24,185 50,000 General (7) 28,407 50,000 General (8) 29,370 47,459 General (9) 10,000 159 General (10) 20,055 General (11) 100,000 General (12) 17,000 General (13) 61,000 Nonmajor Governmental Funds:

Senior Advocacy Program (14) 87,732 Senior Advocacy Program (15) 3,764 Library Memorial Special Revenue Fund 10,000 Engineering Dept. Capital Project Fund (16) 183,802 Street Reconstruction Capital Project Fund (17) 21,948 Tax Abatement Capital Project Fund (18) 35,484 Tax Abatement Capital Project Fund (19) 68,500 Levee Park Capital Project Fund 35,484 Bandshell Lions Playground Fund (20) 30,000 Municipal State Aid Capital Project Fund 183,802 Municipal State Aid Capital Project Fund 21,948

Total governmental funds 950,002 850,348

Internal Service Funds: Health Insurance (21) 260,000$ - $ Equipment Replacement (22) 50,000 105,000 Equipment Replacement (23) 2 15,785 Equipment Replacement 66,873 Equipment Replacement 23,199 Equipment Replacement 17,898 Equipment Replacement 24,185 Equipment Replacement 28,407 Equipment Replacement 29,370 Equipment Replacement 10,000 Equipment Replacement 100,000 Equipment Replacement 17,000 Equipment Replacement 30,000 Facilities (24) 50,000 68,500 Facilities (25) 2 Risk Management 2 Risk Management 2 Infrastructure Replacement (26) 50,000 Park Revolving (27) 50,000

Total internal service funds 460,004 536,221

Total governmental activities 1,410,006 1,386,569

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Transfers In Transfers OutBusiness-type activities:

Storm Sewer Fund 20,055$ Storm Sewer Fund 61,000 Recreation Fund (28) 47,459$ Library Fund (29) 10,000 Library Fund (30) 159

Total business-type activities 57,618 81,055 Total Primary Government 1,467,624$ 1,467,624$

PURPOSE OF TRANSFERS IN:(1) From the Equipment Replacement Fund for police car(2) From the Equipment Replacement Fund for street compactor(3) From the Equipment Replacement Fund for fire rescue truck(4) From the Equipment Replacement Fund for engineering vehicle(5) From the Equipment Replacement Fund for parks mower(6) From the Equipment Replacement Fund for parks pickup(7) From the Equipment Replacement Fund for parks utility van(8) From the Equipment Replacement Fund for parks pickup and plow(9) From the Equipment Replacement Fund for central garage furnace(10) From the Storm Sewer Fund for flood pumps(11) From the Equipment Replacement Fund for bandshell(12) From the Equipment Replacement Fund for airport mower(13) From the Storm Sewer Fund for street sweeping(14) From the General Fund to provide subsidy to cover portion of the Senior Advocacy's operation(15) From the General Fund for salary increase(16) From the Municipal State Aid Fund for Huff Street and Highway 61 project(17) From the Municipal State Aid Fund for Grand Street project(18) From the Levee Park Fund for park projects(19) From the Facilities Fund for Sobieski park pavilion(20) From the Equipment Replacement Fund for Lion's playground(21) From the General Fund for health insurance(22) From the General Fund per Financial Management Policy(23) From the Risk Management Fund per Financial Management Policy(24) From the General Fund per Financial Management Policy(25) From the Risk Management Fund per Financial Management Policy(26) From the General Fund per Financial Management Policy(27) From the General Fund per Financial Management Policy(28) From the General Fund for salary increase(29) From the Library Memorial Special Revenue Fund for library use(30) From the General Fund for salary increase

8. FUND EQUITY

Nonspendable, Restricted, Committed, Assigned, or Unassigned—

The fund balance classifications are defined by GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions, as follows:

Nonspendable: Amounts that cannot be spent because they are not in spendable form or legally or contractually required to remain intact.

Restricted: Externally-imposed constrains that apply to the use of the funds such as by grantor or debt covenants. If money is set aside for this purpose, it is used first before the other classifications.

Committed: Internally-imposed constraints that apply to use of the funds. (The City Council approves a resolution for committed items each year. The City Council approves the uncommitted funds.)

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Assigned: The intended use is expressed, but neither restricted nor committed. (The delegation of the authority to assign the fund balance is given to the Finance Director by approval of the City Council.)

Unassigned: The General Fund is the only fund that reports a positive unassigned fund balance amount.

The City considers restricted amounts to have been spent when an expenditure is incurred for the purpose of the restriction. The City considers committed amounts to have been spent when an expenditure is incurred for the purpose of the commitment.

The flow assumption, if committed, assigned, and unassigned resources are available for use for the same purpose, the City’s policy is to use first-committed resources, second-assigned resources and third-unassigned resources.

Net position, fund balances, and retained earnings in the various funds at December 31, 2019, have been set up as nonspendable, restricted, committed, assigned, or unassigned for the following purposes:

PRIMARY GOVERNMENT

RESTRICTED—Government-Wide Financial Statements

Major Governmental Funds:General Fund: Drug seizure and DWI penalty assessment (Police) 21,238$ CMH property transfer 35,000 Japanese Garden 5,000 OPEB - reitree subsidy health plan - PERA Contribution - PIR Bond Fund—for debt payments 537,335 PIR Construction Fund—for P.I.R. projects 343,857 City Equipment 348,878 Ice Arena 57,186 Street Reconstruction Project 1,107,402 Other Funds (Internal Service Funds): Health Insurance Fund: Health plan account - Contributed to start the fund 199,654 Health insurance 1,403,767 LELS Health Fund—health insurance 262 Employee Benefit Fund: Employee benefits 2,867,352 Risk Management Fund: Property self-insurance 202,729 Workers' compensation maximum 664,792 Emergency issues/claims 420,489 Equipment Replacement Fund: Equipment replacement 1,060,838 Commitments 838,000 Facilities Fund: Commitments 171,000 Facilities 2,608,753 Infrastructure Replacement Fund 3,848,089 Park Revolving Fund 50,000

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RESTRICTED—Continued

Nonmajor Governmental Funds:Debt Service Funds: 1999B Sales Tax Revenue Bond— for Riverbend Industrial Park infrastructure/sales tax issues 188,327$ Equipment Certificates—for debt payments 730,871 Tax Abatement Bond (2017B)—for debt payments 497,701 Capital Projects Funds: Municipal State Aid—projects 296,221 Dike construction 206,139 Park Site-parks for subdivisions 109,858 Engineering projects 235,589 City building improvements 2,648 Infrastructure revolving 1,430,289 High Wagon Bridge reconstruction 189,848 Aghaghming Park construction 1,926 Softball field development—improvements 106,313 Park Projects 2017 (w/o L. Park) 1 Levee Park Project 156,075 2017B Masonic Temple Project 285,411 Permanent Funds: Expendable 325,142

Total governmental activities 21,553,980 Major Proprietary Funds:Water Fund: Commitments 179,000 Bond requirements - Sanitary Sewer Fund: Commitments 518,496 Bond requirements 429,690 Inspections Fund: Commitments 29,089 Airport Fund: Commitments - Bond requirements 122,000 Public Transportation Fund—commitments 188,597 Recreation Fund—commitments 4,000 Library Fund—commitments 75,500

Storm Sewer Fund—commitments 19,500

Total business-type activities 1,565,872 Total Restricted (Primary Government) Excluding Nonspendable 23,119,852

RESTRICTED, NONSPENDABLE—Fund Financial Statements

Nonmajor Governmental Funds:General Fund 101,176$ Senior Advocacy Fund 20 Permanent Funds: Endowment (original contributions) 56,000

Total Nonexpendable 157,196

Total Restricted (Primary Government) Including Nonexpendable 23,277,048$

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COMMITTED—Fund Financial Statements

Major Governmental Fund:General Fund: Encumbrances and commitments 2,909,722$ Snow removal 84,789 Boat harbor 270,217 Trail maintenance 500

Nonmajor Governmental Funds: Special Revenue Funds: Emergency 67,324 Athletic 6,814 Library Memorials 95,481 1990 Downtown Redevelopment Grant 43,068 1994 Downtown Redevelopment Grant 173,379 Metro Plains 58 West Central Revitalization 47,368 Central City Rehab 122,953

Total Committed (Primary Government) 3,821,673$

ASSIGNED—Fund Financial Statements

Major Governmental Fund:General Fund: Cash flow 5,403,308$

Total Assigned (Primary Government) 5,403,308$

UNASSIGNED—Fund Financial StatementsNonmajor Governmental Fund:

Special Revenue Fund:

Senior Advocacy Program (7,328)$ Capital Project Fund: Bandshell Lions Playground (4,182)

Total Unassigned (Primary Government) (11,510)$

COMPONENT UNIT—Government-Wide Financial StatementsNonexpendable 2,314,592$ Restricted-Port Debt Service and Projects 4,153,217 Unassigned (251,083)

Total Component Unit 6,216,726$

9. NET POSITION DEFICITS, FUND EQUITY DEFICITS, AND INDIVIDUAL FUND DISCLOSURES

Primary Government

Fund Equity Deficits—At December 31, 2019, the Senior Advocacy Program Fund, a special revenue fund, had a deficit fund balance of $7,308. This fund had a carryover deficit of fund balance from 2018. (The deficit fund balance at December 31, 2018 was $11,198.) The deficit fund balance should be eliminated in the next few years due to additional revenues or a reduction in expenditures.

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Individual Fund Disclosures—For the year ended December 31, 2019; actual expenditures exceeded the budget in the following General Fund departments:

FinalGeneral Fund Budgeted Actual Variance

Cable television commission 20,000$ 42,074$ (22,074)$ Fire 3,036,961 3,190,883 (153,922) Flood & storm control 1,180,811 1,183,028 (2,217) Streets and alleys 2,266,058 2,285,535 (19,477) Public works - trees 432,685 470,065 (37,380) Park maintenance 1,671,969 1,899,650 (227,681) Community development 291,725 299,309 (7,584)

Expenditures were less than appropriations for other departments within the General Fund; therefore, the actual amounts that exceeded the budget (listed above) had no significant impact on the financial results of the General Fund.

The Recreation Fund has a cash deficit. It will be addressed for funding during the 2021 budget process as well as during 2020 (the actual expenditures in 2020 may be less than that which was budgeted).

Component Unit

Fund Equity Deficits—At December 31, 2019, the Riverbend Brownfields Fund, a capital project fund, had a deficit fund balance of $251,083.

10. FUND CHANGES

Funds opened during 2019:

City— Internal Service Fund Park Revolving Fund

Component Unit – Capital Project Fund 120 Walnut Tax Increment

Component Unit – Capital Project Fund 956 MankatoTax Increment

Funds closed during 2019:

City— No funds were closed during 2019

Component Unit— No funds were closed during 2019

11. SEGMENT INFORMATION FOR ENTERPRISE FUNDS

At December 31, 2019, the City reported eight Enterprise Funds. These funds provide water, sanitary sewer, inspections, airport, public transportation, recreation, library, and storm sewer. There are no revenue bonds where investors rely solely on the revenue generated by the individual segments or other individual activities for repayment.

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12. CONTINGENCIES

There are several pending lawsuits, claims, and disputes in which the City is involved. The City does not expect that the potential claims against the City not covered by insurance and resulting from such litigation, claims, and disputes would materially affect the financial statements.

13. RISK MANAGEMENT

City’s Programs:

The City highlights the following risk management programs: (1) health benefit; (2) other post-employment benefits; and (3) property and casualty insurance. For the health benefit risk management program, premiums are paid into the Health Insurance Fund by user departments, employees, and other funds. Such premiums are available to pay claims and administrative costs, and to fund claim reserves. For the other post-employment benefits, the premiums for the employees’ pensions are paid partially by the City and partially by the employee. The retirees that are part of the City’s health insurance plan pay the premium that is the full group rate of an active employee. For the property and casualty insurance risk management program, premiums are paid from the user department based on use.

For 2019, there were no significant reductions in insurance coverage from 2018 or 2017 in either of the health benefit or the property and casualty insurance program.

Health Benefit Program:

The health benefit program is designed to provide for the payment of healthcare costs for employees. The City maintains a self-insurance program for employee group health coverage, which includes an individual excess coverage policy for claims exceeding $110,000 per person, per year in 2019 ($110,000 per person in 2018). Also included in the program is an aggregate excess coverage policy; for 2019, the attachment point for this policy was set at $1,992,081. The aggregate excess coverage attachment point is 125% of the expected claims for the plan year. This amount is calculated by BlueCross BlueShield of Minnesota.

For 2019, the City offered three health plan options with consumer-driven healthcare programs that combined high deductibles with individual Health Savings Accounts (HSAs)—employee-held accounts used for healthcare expenses not covered by the underlying plan.

During 2019, net claims were $1,476,948 (total claims of $1,790,987 less specific stop-loss claim reimbursements of $314,039 paid back to the City). Other 2019 costs are listed as follows: administrative costs of $47,455; HPA reimbursements of $2.000; and a decrease in incurred but not reported claims (over December 31, 2018) of $179,000, reflecting the depletion of unused funds in employees’ HPAs and a reduction in overall incurred, but not reported claims. The stop-loss premium was $431,625; premiums are based on the option chosen, the number of covered employees, prior years’ costs, and the projected increase in healthcare cost for the coming year. Premiums are budgeted in each fund/department and are, with the exception of premiums paid by employees, reported as department charges or quasi-external interfund transactions, as appropriate.

An estimate of incurred but not reported claims and administration fees and claims reported, but not settled at year-end of $148,000 has been accrued as a liability in the Health Insurance Fund within the Internal Service Fund at December 31, 2019. In addition, a reserved fund balance of $1,000 has been established for future HPA claims. For the past three years, there have been no settlements paid for more than the insurance coverage.

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Changes in the health insurance liability for claims and administration fees for the Internal Service Fund during the past two years are as follows:

2019 2018

Beginning of year liability 329,839$ 227,839$ Current year claims, administration fees, and changes to estimates 1,775,028 2,283,252 Payments for claims and administration fees (1,956,028) (2,181,252)

End of year liability and HPA reserves 148,839$ 329,839$

Also, effective January 1, 2003, the police officers and police sergeants left the City-sponsored health plan to enroll in a non-City-sponsored health plan. The police officers’ group returned to the City’s health plan effective January 1, 2010, but left again effective January 1, 2016. These two groups represent approximately 22% of the City’s benefits-eligible workforce.

Other Post-Employment Benefits—Pensions:

State law requires that all full-time and certain part-time employees of the City participate in a statewide defined benefit pension plan administered by PERA. PERA administers GERF and PEPFF. As of December 31, 2019, GERF was 78.6% funded and PEPFF was 87.4% funded. As of December 31, 2018, GERF was 78.0% funded and PEPFF was 87.1% funded. (See Note 6.)

Other Post-Employment Benefits—Other Than Pensions:

Plan Description—The City of Winona administers a single-employer defined benefit healthcare plan, as part of the City of Winona Medical Benefit Plan (funded on a pay-as-you-go basis). Retirees have the same choice of healthcare plans that the City provides to their active employees. The City’s retiree healthcare plan does not issue a standalone financial report; retiree healthcare financial information is included in the City’s overall financial report.

Benefits Provided and Funding Policy—The City of Winona provides medical insurance benefits to its retired employees and their dependents. An employee must be eligible for retirement and currently enrolled in the health insurance plan to be eligible for retiree insurance. (A separate audited report is not available.) The City requires the former employee to pay the full group active employee cost of the plan they select. Until 2007, the benefit expired at age 65. In late 2007, the City began allowing retirees to continue their coverage beyond age 65 by continuing to pay the full group active employee cost. At this time, police sergeants and police officers have elected not to participate in the City’s health plan. (The decision to provide this benefit is made by the City Council of the City of Winona on a year-to-year basis.)

The rates are set annually by the City Council based on the combination of premiums and prior year costs of the self-funded plan. The plan is funded on a pay-as-you-go basis.

Employee Covered by Benefit Terms—At December 31, 2019, the measurement date, the following participants were covered by the health insurance plan:

Active plan members 134 Inactive currently receiving payments (includes spouses) 15 Total Participants 149

Total Other Post-Employment Benefit (OPEB) Liability-The City’s total OPEB liability of $1,851,340 was measured as of December 31, 2019, and was determined by an actuarial valuation as of that date.

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Total OPEB Liability-Actuarial Assumptions and Other Inputs-The total OPEB liability at December 31, 2019 was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Inflation rate Not applicable Discount rate 3.26% based on the Fidelity Bond 20-Year Index as of the measurement date Healthcare cost trend rates 8.0% for one year after valuation, decreasing by .50% per year to

5.00% in the seventh year after valuation. Trend rates are based on plan experience, historical trends, and industry norms. The immediate trend rates are assumed to decrease to an ultimate trend rate over a period of 5 to 10 years.

Salary Scale 3.00%

Annual OPEB Cost—OPEB includes health insurance. For 2019, the City’s Net OPEB Liability and Projected OPEB Expense were calculated based on the requirements of GASB Statements No. 74, Financial Reporting for Postemployment Benefits Plans Other Than Pension Plans, and No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.

The following table shows the components of the City’s Total OPEB Liability, including service and interest costs and the net benefits paid by the City:

2019 2018

Service Cost 124,631$ 121,001$ Interest Cost 63,692 56,798

Annual OPEB cost 188,323 177,799 Changes in Assumptions 52,059 -

Net Benefits Paid by Employer (174,536) (551,826)

Decrease in total OPEB obligation 65,846 (374,027) Total OPEB liability, beginning of year 1,785,494 2,159,521

Total OPEB liability, end of year 1,851,340$ 1,785,494$

Sensitivity Analysis-

Discount Rate Sensitivity A 1% increase would decrease the Net OPEB Liability (NOL) by $1,713,329 A 1% decrease would increase the NOL by $2,001,728

Healthcare Trend Sensitivity A 1% increase would increase the NOL by $2,078,290 A 1% decrease would decrease the NOL by $1,659,640

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Property and Casualty Insurance Program:

The City participates in the self-insurance program of the League of Minnesota Cities Insurance Trust (LMCIT) to provide the City’s property and casualty coverage. During 2019, costs of premiums associated with the program were $211,866 (2018 premium costs were $217,997). There were no changes in the overall program for 2019 as compared to 2018.

City property is insured on a blanket basis with a limit of $95,697,223 and $91,896,493 for 2019 and 2018, respectively. The City also carried a $50,000 deductible, per occurrence, for property losses for both 2019 and 2018.

The liability policy is on a claims-made basis, and is retroactive to January 1, 1987. The deductibles included within the policy are $50,000 per occurrence and $200,000 annual aggregate. The policy includes a $2,000,000 liability limit per Minnesota Statutes in 2019 and 2018. During 2019 and 2018, costs of premiums associated with the municipal liability program were $92,817 and $101,043, respectively.

For 2019, the boiler and equipment policy is covered up to whatever the loss is subject to the statement of values for property limit of $95,697,223 with a $50,000 deductible. (For 2018, the value for the property limit was $91,896,493 with a $50,000 deductible.) The 2019 premium for this option was $7,177, and for 2018 it was $6,892. For 2019 and 2018, the premium for mobile property was $5,202 and $4,736, respectively, which included comprehensive protection for equipment and replacement cost.

The LMCIT provided airport insurance for the City in 2019 and 2018. This policy provided both a $2,000,000 coverage for each occurrence and in a $3,000,000 aggregate. In this policy, the Airport Hangarkeeper’s Liability is unlimited. The 2019 cost was included in the municipal liability policy. This was also true for the 2018 cost.

Premiums are charged to the funds/departments based on a formula of usage and expenditures. For the past three years, there have been no settlements paid more than the insurance coverage. The amounts paid that are less than the deductible are as follows: $346,034 for 2019; $79,173 for 2018; and $150,037 for 2017.

The City participates in the LMCIT for its workers’ compensation plan, which is administered by Berkley Administrators. Under the plan, all claims are paid from the insurance trust. The net deposit premium paid by the City in 2019 totaled $527,676 (in 2018, it totaled $426,589). The City’s premiums are adjusted in future years based upon the cost of claims with the minimum cost of $91,820 and the maximum cost of $1,192,468.

Risk Management Fund:

A City Internal Service Fund was established during 1996 to account for receipts of dividends from property/casualty and workers’ compensation refunds as revenues. These receipts may be used to finance property losses for items less than any applicable insurance deductible or for specific low-risk items which are uninsured. These receipts may also be applied toward the payment of the annual cost of the property/casualty insurance premium (prior to the distribution of the costs by fund and department), may pay for items which would be considered those to reduce the City’s risk, may absorb the annual fluctuation of workers’ compensation premiums, and may contribute toward the maximum premium payment for workers’ compensation. At December 31, 2019, $664,792 has been restricted within fund balance to pay the 2019 maximum, if needed.

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14. CONDUIT DEBT OBLIGATIONS

In prior years, the City has issued certain debt (bonds or notes) bearing its name to lower the cost of borrowing for specific nongovernmental third-parties for which the purpose of the debt is deemed to be in the public interest. These conduit or no-commitment debt obligations are serviceable from payments derived pursuant to a Loan Agreement and from the property which secures payment of the debt. The City is not obligated in any manner for repayment of the bonds or notes; thus, the debt is not reported as a liability in the accompanying financial statements.

The principal amount payable for the bonds and notes could not be determined. The original issue amounts of the conduit debt are listed below (the * denotes the conduit debt for the component unit—the Port Authority):

OriginalCompany, Series, Project, Issue Date Maturity Amount

Winona State University Foundation Project—September 1, 2002 September 1, 2027 9,816,000$ *Housing Revenue Note, Series 2004, Home and Community Options Project—June 1, 2004 June 1, 2024 920,000 *Housing Revenue Refunding Note, Series 2004, Saint Anne of Winona Project—July 10, 2004 June 10, 2027 6,600,000 Health Care Facilities Revenue Refunding Note, Series 2005 Sauer Memorial Home Project—March 7, 2005 May 14, 2025 1,090,000 (Refunded Health Care Facilities Revenue Note, Series 1998)Winona Health Obligated Group July 1, 2034 14,280,000 Healthcare Facility Revenue Bond Series 2007Housing Revenue Note, Series 2009, Home and Community Options, Inc. Project—August 1, 2009 August 20, 2029 300,000 *Minnesota Recovery Zone Facility Revenue Bond, Series 2010, Bay State Milling Company Project—August 30, 2010 September 1, 2022 5,200,000 *Housing Facility Revenue Note, Series 2010, Saint Anne of Winona Project—October 18, 2010 October 18, 2035 2,500,000 *Senior Housing Revenue Bonds, Series 2010The Waters at Winona Project—December 29, 2010 December 1, 2050 10,750,000 Education Facilities Revenue Bond, Series 2011, MN State SE Technical Foundation Project—March 29, 2012 March 29, 2032 900,000 (Refunded Education Facilities Bonds, Series 2005)Healthcare Facilities Refunding Revenue Bonds, Series 2012, Winona Health Obligated Group—May 1, 2012 July 1, 2034 19,895,000 (Refunded Health Care Facilities Bonds, Series 2004A)*Bluffivew Montessori School, Series 2016A Revenue Refunding Bonds (Tax Exempt) June 1, 2046 4,520,000 *Bluffivew Montessori School, Series 2016B Revenue Refunding Bonds (Taxable) June 1, 2019 230,000

* * * * * *

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THIS PAGE LEFT INTENTIALLY BLANK.

REQUIRED SUPPLEMENTARY INFORMATION


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SCHEDULE OF CONTRIBUTIONSPUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUNDREQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS) (1)

Statutorily Contributions in Relation Contribution Contributions as a

Required to the Statutorily Required Deficiency Covered Percentage ofYear Contributions (a) Contributions (b) (Excess) (a-b) Payroll (d) (2) Covered Payroll (b/d)

2019 552,655$ 552,655$ - $ 7,368,732$ 7.50%2018 519,389 519,389 - 6,925,187 7.50%2017 485,063 485,063 - 6,467,511 7.50%2016 444,285 444,285 - 5,923,797 7.50%2015 428,821 428,821 - 5,717,617 7.50%

Notes:(1) This schedule is presented prospectively beginning with the fiscal year ended December 31, 2015.(2) For purposes of this schedule, covered payroll is defined as "pensionable wages".

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SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITYPUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUNDREQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS) (1)

Employer's Employer's Employers Proportionate Proportion Proportionate Share of the Net Pension Plan Fiduciary Net

(Percentage) of the Share (Amount) Employer's Liability as a Position as aNet Pension of the Net Covered Percentage of its Percentage of the

Year Liability Pension Liability (a) Payroll (b) (2) Covered Payroll (a/b) Total Pension Liability

2019 0.1016% 5,617,236$ 7,190,139$ 78.12% 80.23%

2018 0.0999% 5,542,042 6,708,984 82.61% 79.53%

2017 0.0969% 6,186,032 6,242,622 99.09% 75.90%

2016 0.0932% 7,567,378 5,786,150 130.78% 68.91%

2015 0.0979% 5,073,686 5,755,988 88.15% 78.19%


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SCHEDULE OF CONTRIBUTIONSPUBLIC EMPLOYEES POLICE AND FIRE FUNDREQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS) (1)

Statutorily Contributions in Relation Contribution Contributions as a

Required to the Statutorily Required Deficiency Covered Percentage ofYear Contributions (a) Contributions (b) (Excess) (a-b) Payroll (d) (2) Covered Payroll (b/d)

2019 858,309$ 858,309$ - $ 5,063,773$ 16.95%2018 784,937 784,937 - 4,845,293 16.20%2017 739,626 739,626 - 4,565,593 16.20%2016 708,363 708,363 - 4,372,611 16.20%2015 661,846 661,846 - 4,085,468 16.20%


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SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITYPUBLIC EMPLOYEES POLICE AND FIRE FUNDREQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS) (1)

Employers Proportionate Employer's Proportion Share of the Net Pension Plan Fiduciary Net

(Percentage) of the Employer's Proportionate Employer's Liability as a Position as aNet Pension Share (Amount) of the Net Covered Percentage of its Percentage of the

Year Liability Pension Liability (a) Payroll (b) (2) Covered Payroll (a/b) Total Pension Liability

2019 0.469% 4,992,979$ 4,945,102$ 100.970% 89.260%2018 0.448% 4,777,350 4,723,419 101.140% 88.840%2017 0.436% 5,886,519 4,473,364 131.590% 85.430%2016 0.442% 17,738,229 4,257,706 416.610% 63.880%2015 0.436% 4,953,980 3,998,041 123.910% 86.600%


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SCHEDULE OF CHANGES IN OPEB LIABILITY AND RELATED RATIOSREQUIRED SUPPLEMENTARY INFORMATION (LAST TEN YEARS) (1)

2019 2018Total OPEB Liability

Service cost 124,631$ 121,001$ Interest cost 63,692 56,798 Effect of assumption changes or inputs 52,059 -

Benefit payments (174,536) (551,826)

Net change in total OPEB liability 65,846 (374,027)

Total OPEB liability, beginning 1,785,494 2,159,521

Total OPEB liability, ending (a) 1,851,340$ 1,785,494$

Fiduciary Net PositionEmployer contributions 174,536$ 551,826$ Participant contributions 49,716 106,414

Benefit payments (224,252) (658,240)

Net change in fiduciary net position - -

Fiduciary net position, beginning - -

Fiduciary net position, ending (b) - -

Total OPEB liability, ending = (a) - (b) 1,851,340$ 1,785,494$

Fiduciary net position as a percentage of total OPEB liability 0.00% 0.00%

Covered employee payroll 7,772,179$ 7,888,664$

Total OPEB liability as a percentage of covered employee payroll 23.82% 22.63%

Notes:(1) This schedule is presented prospectively beginning with the fiscal year ended December 31, 2018.

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OTHER SUPPLEMENTARY INFORMATION


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NONMAJOR FUNDS

Special Revenue Funds

Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes.

Emergency Fund—Established to account for residential rehabilitation projects funded by repayments of previous rental rehabilitation projects.

Athletic Fund—Established pursuant to an agreement which creates a board to control, administer, and care for certain properties within the City.

Senior Advocacy Program Fund—Established to record the receipt of federal revenues used for various support services for senior citizens.

Library Memorials Fund—Established to account for the proceeds of estates donated to the City to be used for the public library.

Downtown—1990 Community Development (C.D.) Loan Fund—Established to account for the repayment of loans from the 1990 Downtown Redevelopment Grant.

Downtown—1994 Community Development (C.D.) Loan Fund—Established to account for the repayment of loans from the 1994 Downtown Redevelopment Grant.

Metro Plains Housing Fund—Established to facilitate the development of rental housing for low- and moderate-income people in the former Winona Middle School building.

West Central Revitalization Fund—Established to account for the rehabilitation of single family properties in the neighborhood surrounding the Habitat Jimmy Carter project.

Center City Rehab Fund—Established to assist in a commercial and housing rehabilitation loan program for the core area of the City.

Debt Service Funds

The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

1999B G.O. Sales Tax Revenue Bond Fund—Established to account for revenues primarily from Winona sales and use tax and motor vehicle excise tax proceeds to pay for the debt service of the 1999B G.O. Sales Tax Revenue Bond. The proceeds of the bond were used to finance the costs associated with dredging Lake Winona and relocating the dredge material to the Riverbend Industrial Park.

Equipment Certificates of Indebtedness (2011A & 2015A) Fund—Established to account for property tax proceeds and debt service on the 2011A and the 2015A G.O. Equipment Certificates.

G.O. Tax Abatement Bonds (2017B) Fund—Established to account for property tax proceeds and debt service on the Recreation projects.

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Capital Projects Funds

Capital Projects Funds are used to account for the acquisition, construction, or improvement of major capital facilities or sites other than those financed by proprietary funds and trust funds.

Municipal State Aid Fund—Established to account for both the revenues received for State Aid road construction projects and the expenditures of related State Aid road construction projects.

Dike Construction Fund—Established to account for the revenues and the expenditures related to the City’s flood control project (expenditures are mostly for City dike improvements).

Park Site Fund—Established to account for revenues from subdivision development for the purpose of park acquisition and park improvements.

Engineering Department Projects Fund—Established to account for property tax and other revenues to finance Engineering Department capital improvement projects that are not included in an individual fund.

City Building Improvements Fund—Established to account for revenues and expenditures relating to the improvements of City buildings.

Infrastructure Revolving Fund—Established to front capital improvement projects (with reimbursement to be made back to this fund) or finance capital projects (with no reimbursement back to this fund). These are projects that are included in the Capital Improvement Plan (CIP). The project must appear in the CIP for at least two years, and no more than 50% of the project costs would be contributed by this fund.

High Wagon Bridge Reconstruction Fund—Established to account for revenues and expenditures for the reconstruction of the High Wagon Bridge project.

Aghaghming Park Construction Funds—Established to account for Aghaghming Park projects.

Softball Field Development Fund—Established to account for revenues from softball fees that are to be used for softball field development.

Bandshell Lions Playground Project Fund—Established to account for revenues and expenditures relating to the playground equipment (Bandshell) project mostly funded by donations raised by the Lions Club of Winona.

Park Projects 2017 Fund—Established to account for revenues and expenditures relating to the recreation projects funded by the G.O. Tax Abatement bond issue (2017B) excluding the Levee Park project.

Levee Park Project Fund—Established to account for revenues and expenditures relating to one of the recreation projects called Levee Park project funded by the G.O. Tax Abatement bond issue (2017B).

Masonic Temple Project Fund (2017B)—Established to account for revenues and expenditures relating to one of the recreation projects called Masonic Temple project funded by the G.O. Tax Abatement bond issue (2017B).

Permanent Funds

Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the City’s programs.

Bell Art Endowment Fund—Created pursuant to the bequest by Frederick Somers Bell, a $5,000 gift was given to the Winona Public Library. The principal is to be kept intact, and only the interest of the fund may be used for the purchase of books in the general field of art, including architecture, music, and the like.

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Laird and Bell Endowment Fund—Established pursuant to the bequests of William H. Laird and Francis Laird Bell, the $10,000 of principal is to be kept intact. The interest may only be used for the maintenance, repair, decoration, and redecoration of the Laird Library building.

C. M. Youman Memorial Fund—Created pursuant to a bequest of $2,000 by C. M. Youman, the principal is to be kept intact. The interest may only be used for general park purposes, which may include acquiring new park ground.

H. C. Garvin Winona Civic Fund—Established pursuant to H. C. Garvin’s bequest of $35,000 to the City, the principal is to be kept intact. The interest may only be used for certain areas on Garvin Heights and for the care and maintenance of Windom Square Park.

Dr. C. A. Rohrer Fund—Established pursuant to a $2,000 bequest by Dr. C. A. Rohrer, the principal is to be kept intact. The interest may only be used for the betterment of the Lake Winona gardens and park.

Leonhard Fried Educational Fund—Created pursuant to the bequest made by Leonhard Fried, the Winona National Bank is the trustee of the estate. The net income derived from the trust is to be an annual gift to the Winona Public Library for the purchase of books and other educational materials.

Mielimonka Library Fund—Created pursuant to a $2,000 gift to the Winona Public Library from Dieter and Denise Mielimonka. The principal is kept intact, and only the interest of the fund may be used for the purchase of library materials.

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COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS


Senior DowntownAdvocacy Library 1990 C.D.

ASSETS Emergency Athletic Program Memorials Loan

Cash and cash equivalents 67,324$ 6,814$ 13,675$ 95,481$ 43,068$ Restricted investments - - - - - Receivables—Net: Taxes - - - - - Customers and other - - - - - Due from other funds - - - - - Due from other governmental units - - - - -

Prepaid items - - 20 - -

TOTAL 67,324$ 6,814$ 13,695$ 95,481$ 43,068$

LIABILITIES AND FUND BALANCES (DEFICITS)

LIABILITIES: Accounts payable - $ - $ 2,310$ - $ - $ Accrued salaries and compensated absences - - 18,693 - -

Due to other funds - - - - -

Total liabilities - - 21,003 - -


Unavailable revenue - - - - -

FUND BALANCES (DEFICITS): Nonspendable - - 20 - - Restricted - - - - - Committed 67,324 6,814 - 95,481 43,068

Unassigned (deficit) - - (7,328) - -

Total fund balances (deficits) 67,324 6,814 (7,308) 95,481 43,068

TOTAL 67,324$ 6,814$ 13,695$ 95,481$ 43,068$

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Special Revenue Debt Service1999B G.O. Equipment 2017B G.O.

Downtown Metro West Central Special Sales Tax Certificates Tax Debt1994 C.D. Plains Central City Revenue Revenue (2011A) Abatement Service

Loan Housing Revitalization Rehab Total Bond (2015A) Bond Total

173,379$ 58$ 47,368$ 122,953$ 570,120$ 188,327$ 726,156$ 492,438$ 1,406,921$ - - - - - - - - -

- - - - - - 14,911 14,374 29,285 - - - - - - - - - - - - - - - - - - - - - - - - 5,190 5,263 10,453

- - - - 20 - - - -

173,379$ 58$ 47,368$ 122,953$ 570,140$ 188,327$ 746,257$ 512,075$ 1,446,659$

- $ - $ - $ - $ 2,310$ - $ 475$ - $ 475$ - - - - 18,693 - - - -

- - - - - - - - -

- - - - 21,003 - 475 - 475

- - - - - - 14,911 14,374 29,285

- - - - 20 - - - - - - - - - 188,327 730,871 497,701 1,416,899

173,379 58 47,368 122,953 556,445 - - - -

- - - - (7,328) - - - -

173,379 58 47,368 122,953 549,137 188,327 730,871 497,701 1,416,899

173,379$ 58$ 47,368$ 122,953$ 570,140$ 188,327$ 746,257$ 512,075$ 1,446,659$

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COMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDS


CityMunicipal Engineering Building

State Dike Park Department Improve-ASSETS Aid Construction Site Projects ments

Cash and cash equivalents 296,221$ 206,139$ 109,858$ 152,047$ 2,648$ Restricted investments - - - - - Receivables—Net: Taxes - - - - - Customers and other - - - 116,125 - Due from other funds - - - - - Due from other governmental units - - - 655 -

Prepaid items - - - - -

TOTAL 296,221$ 206,139$ 109,858$ 268,827$ 2,648$


LIABILITIES: Accounts payable - $ - $ - $ 33,238$ - $ Accrued salaries and compensated absences - - - - -

Due to other funds - - - - -

Total liabilities - - - 33,238 -


Unavailable revenue - - - - -

FUND BALANCES (DEFICITS): Nonspendable - - - - - Restricted 296,221 206,139 109,858 235,589 2,648 Committed - - - - -

Unassigned (deficit) - - - - -

Total fund balances (deficits) 296,221 206,139 109,858 235,589 2,648

TOTAL 296,221$ 206,139$ 109,858$ 268,827$ 2,648$

Capital Projects

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High Wagon Bandshell 2017BInfra- Bridge Aghaghming Softball Lions Park Projects Levee Masonic Capital

structure Recon- Park Field Playground 2017 Park Temple ProjectsRevolving struction Construction Development Project (w/o L.Pk) Project Project Total

1,430,289$ 189,848$ 1,926$ 106,313$ 1,283$ 476$ 156,075$ 289,818$ 2,942,941$ - - - - - - - - -

- - - - - - - - - - - - - - - - - 116,125 - - - - - - - - - - - - - - - - - 655

- - - - - - - - -

1,430,289$ 189,848$ 1,926$ 106,313$ 1,283$ 476$ 156,075$ 289,818$ 3,059,721$

- $ - $ - $ - $ 5,465$ 475$ - $ 4,408$ 43,586$ - - - - - - - - -

- - - - - - - - -

- - - - 5,465 475 - 4,408 43,586

- - - - - - - - -

- - - - - - - - - 1,430,289 189,848 1,926 106,313 1 156,075 285,410 3,020,317

- - - - - - - - -

- - - - (4,182) - - - (4,182)

1,430,289 189,848 1,926 106,313 (4,182) 1 156,075 285,410 3,016,135

1,430,289$ 189,848$ 1,926$ 106,313$ 1,283$ 476$ 156,075$ 289,818$ 3,059,721$

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COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS


Bell Laird H.C.Art and C.M. Garvin

Endow- Bell Youman WinonaASSETS ment Endowment Memorial Civic

Cash and cash equivalents - $ - $ - $ - $ Restricted investments 5,780 11,352 12,170 241,976 Receivables—Net: Taxes - - - - Customers and other - - - - Due from other funds - - - - Due from other governmental units - - - -

Prepaid items - - - -

TOTAL 5,780$ 11,352$ 12,170$ 241,976$


LIABILITIES: Accounts payable - $ - $ - $ - $ Accrued salaries and compensated absences - - - -

Due to other funds - - - -

Total liabilities - - - -


Unavailable revenue - - - -

FUND BALANCES (DEFICITS): Nonspendable 5,000 10,000 2,000 35,000 Restricted 780 1,352 10,170 206,976 Committed - - - -

Unassigned (deficit) - - - -

Total fund balances (deficits) 5,780 11,352 12,170 241,976

TOTAL 5,780$ 11,352$ 12,170$ 241,976$

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Permanent Funds TotalNonmajor

Leonhard Permanent GovernmentalDr. C. A. Fried Mielimonka Funds FundsRohrer Educational Library Total

- $ - $ - $ - $ 4,919,982$ 65,511 41,534 2,291 380,614 380,614

- 528 - - 29,285 - - - 528 116,653 - - - - - - - - - 11,108

- - - - 20

65,511$ 42,062$ 2,291$ 381,142$ 5,457,662$

- $ - $ - $ - $ 46,371$ - - - - 18,693

- - - - -

- - - - 65,064

- - - - 29,285

2,000 - 2,000 56,000 56,020 63,511 42,062 291 325,142 4,762,358

- - - - 556,445

- - - - (11,510)

65,511 42,062 2,291 381,142 5,363,313

65,511$ 42,062$ 2,291$ 381,142$ 5,457,662$

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COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDSFOR THE YEAR ENDED DECEMBER 31, 2019

Senior DowntownAdvocacy Library 1990 C.D.

Emergency Athletic Program Memorials Loan

REVENUES: General property taxes - $ - $ - $ - $ - $ Intergovernmental revenues - - 25,743 - - Investment earnings - 217 492 2,082 - Net increase (decrease) in fair value of investments - - - - - Refunds and reimbursements - - - - - Contributions - - - - - Charges for services 23,796 1,000 30,817 - -

Total revenues 23,796 1,217 57,052 2,082 -

EXPENDITURES: General government - - 144,658 - - Public safety - - - - - Economic development 9,259 - - - - Park maintenance - 9,953 - - - Capital outlay - - - - - Debt service: Bond principal - - - - - Interest and other expenditures - - - - -

Total expenditures 9,259 9,953 144,658 - -

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 14,537 (8,736) (87,606) 2,082 -

OTHER FINANCING SOURCES (USES): G.O. Bonds Issued - - - - - Premium on G.O. Debt - - - - - Transfers to other funds - - - (10,000) - Transfers from other funds - - 91,496 - -

Total other financing sources (uses) - - 91,496 (10,000) -

NET CHANGE IN FUND BALANCES 14,537 (8,736) 3,890 (7,918) -

FUND BALANCES (DEFICITS)— January 1, 2019 52,787 15,550 (11,198) 103,399 43,068

FUND BALANCES (DEFICITS)—

December 31, 2019 67,324$ 6,814$ (7,308)$ 95,481$ 43,068$

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Special Revenue Debt Service1999B G.O. Equipment 2017B G.O.

Downtown Metro West Central Special Sales Tax Certificates Tax Debt1994 C.D. Plains Central City Revenue Revenue (2011A and Abatement Service

Loan Housing Revitalization Rehab Total Bond 2015A) Bond Total

- $ - $ - $ - $ - $ - $ 506,052$ 515,429$ 1,021,481$ - - - - 25,743 - - - - - - - - 2,791 3,715 8,826 4,311 16,852

- - - - - - - - - - - - - - - - - - - - - - - - - - -

6,037 - - 4,477 66,127 - - - -

6,037 - - 4,477 94,661 3,715 514,878 519,740 1,038,333

- - - - 144,658 - - - - - - - - - - - - - - - - - 9,259 - - - - - - - - 9,953 - - - - - - - - - - - - -

- - - - - - 435,000 370,000 805,000 - - - - - - 46,975 117,225 164,200

- - - - 163,870 - 481,975 487,225 969,200

6,037 - - 4,477 (69,209) 3,715 32,903 32,515 69,133

- - - - - - - - - - - - - - - - - - - - - - (10,000) - - - - - - - - 91,496 - - - -

- - - - 81,496 - - - -

6,037 - - 4,477 12,287 3,715 32,903 32,515 69,133

167,342 58 47,368 118,476 536,850 184,612 697,968 465,186 1,347,766

173,379$ 58$ 47,368$ 122,953$ 549,137$ 188,327$ 730,871$ 497,701$ 1,416,899$

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Capital ProjectsCity

Municipal Engineering BuildingState Dike Park Department Improve-Aid Construction Site Projects ments

REVENUES: General property taxes - $ - $ - $ 63,481$ - $ Intergovernmental revenues 205,750 - - 15,000 - Investment earnings 8,667 4,067 2,166 2,963 52 Net increase (decrease) in fair value of investments - - - - - Refunds and reimbursements - - - - - Contributions - - - 100 - Charges for services - - - - -

Total revenues 214,417 4,067 2,166 81,544 52

EXPENDITURES: General government - - - - - Public safety - - - - - Economic development - - - - - Park maintenance - - - - - Capital outlay - - - 270,404 - Debt service: Bond principal - - - - - Interest and other expenditures - - - - -

Total expenditures - - - 270,404 -

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 214,417 4,067 2,166 (188,860) 52

OTHER FINANCING SOURCES (USES): G.O. Bonds Issued - - - - - Premium on G.O. Debt - - - - - Transfers to other funds (205,750) - - - - Transfers from other funds - - - 183,802 -

Total other financing sources (uses) (205,750) - - 183,802 -

NET CHANGE IN FUND BALANCES 8,667 4,067 2,166 (5,058) 52

FUND BALANCES (DEFICITS)— January 1, 2019 287,554 202,072 107,692 240,647 2,596


December 31, 2019 296,221$ 206,139$ 109,858$ 235,589$ 2,648$

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High Wagon Bandshell 2017B 2017BInfra- Bridge Aghaghming Softball Lions Park Projects Levee Masonic Capital

structure Recon- Park Field Playground 2017B Park Temple ProjectsRevolving struction Construction Development Project (w/o L.Pk) Project Project Total

- $ - $ - $ - $ - $ - $ - $ - $ 63,481$ - - - - - - - - 220,750

28,214 3,745 39 2,098 11 81 3,991 5,837 61,931

- - - - - - - - - - - - - - - - - - - - - - - 137,799 - - 137,899 - 4,210 - - - - - - 4,210

28,214 7,955 39 2,098 11 137,880 3,991 5,837 488,271

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11,057 - 11,057 - - - - 195,245 206,300 16,871 40,600 729,420

- - - - - - - - - - - - - - 475 - - 475

- - - - 195,245 206,775 27,928 40,600 740,952

28,214 7,955 39 2,098 (195,234) (68,895) (23,937) (34,763) (252,681)

- - - - - - - - - - - - - - - - - - - - - - - - (35,485) - (241,235) - - - - 30,000 103,985 - - 317,787

- - - - 30,000 103,985 (35,485) - 76,552

28,214 7,955 39 2,098 (165,234) 35,090 (59,422) (34,763) (176,129)

1,402,075 181,893 1,887 104,215 161,052 (35,089) 215,497 320,173 3,192,264

1,430,289$ 189,848$ 1,926$ 106,313$ (4,182)$ 1$ 156,075$ 285,410$ 3,016,135$

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Permanent FundsBell Laird H.C.Art and C.M. Garvin

Endow- Bell Youman Winonament Endowment Memorial Civic

REVENUES: General property taxes - $ - $ - $ - $ Intergovernmental revenues - - - - Investment earnings 115 224 240 4,774 Net increase (decrease) in fair value of investments - - - - Refunds and reimbursements - - - - Contributions - - - - Charges for services - - - -

Total revenues 115 224 240 4,774

EXPENDITURES: General government - - - - Public safety - - - - Economic development - - - - Park maintenance - - - - Capital outlay - - - - Debt service: Bond principal - - - - Interest and other expenditures - - - -

Total expenditures - - - -

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 115 224 240 4,774

OTHER FINANCING SOURCES (USES): G.O. Bonds Issued - - - - Premium on G.O. Debt - - - - Transfers to other funds - - - - Transfers from other funds - - - -

Total other financing sources (uses) - - - -

NET CHANGE IN FUND BALANCES 115 224 240 4,774

FUND BALANCES (DEFICITS)— January 1, 2019 5,665 11,128 11,930 237,202


December 31, 2019 5,780$ 11,352$ 12,170$ 241,976$

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TotalNonmajor

Leonhard Permanent GovernmentalDr. C. A. Fried Mielimonka Funds FundsRohrer Educational Library Total

- $ - $ - $ - $ 1,084,962$ - - - - 246,493

1,291 1,180 46 7,870 89,444

- 1,353 - 1,353 1,353 - - - - - - - - - 137,899 - - - - 70,337

1,291 2,533 46 9,223 1,630,488

- - - - 144,658 - - - - - - - - - 9,259 - - - - 21,010 - - - - 729,420

- - - - 805,000 - - - - 164,675

- - - - 1,874,022

1,291 2,533 46 9,223 (243,534)

- - - - - - - - - - - - - - (251,235) - - - - 409,283

- - - - 158,048

1,291 2,533 46 9,223 (85,486)

64,220 39,529 2,245 371,919 5,488,799

65,511$ 42,062$ 2,291$ 381,142$ 5,403,313$

- 114 -


- 115 -

INTERNAL SERVICE FUNDS

Internal Service Funds are used to account for the financing of goods or services provided by one city department to other city departments on a cost-reimbursement basis.

Health Insurance Fund—Established to account for the City’s health self-insurance activities.

Law Enforcement Labor Services (LELS) Fund—Established to account for the police officers’ and the police sergeants’ health insurance activities. Also includes the prepaid amounts for health insurance for specific retirees.

Employee Benefit Fund—Established to accrue all unused employee vacation, sick leave, and compensation time for the governmental funds of the City. The Employee Benefit Fund’s revenues are derived from direct charges to the City’s governmental funds.

Risk Management Fund—Established to account for the revenues from dividends of property/casualty and workers’ compensation insurance programs. For the property program, it may finance the uninsured items and pay out the annual premium cost prior to department distribution. For the workers’ compensation program, it may absorb the annual fluctuations in this cost.

Equipment Replacement Fund—Established to begin an Equipment Revolving Schedule. In the future, this fund is to account for the acquisition of machinery and equipment, and user charges will be billed to various City departments.

Facilities Fund—Established to begin a Facilities Schedule that will account for the replacement, development, and large-type maintenance of the City’s buildings and structures.

Infrastructure Replacement Fund—Established to begin a schedule to replace the City’s infrastructure.

Park Revolving Fund—Established for large-type maintenance of the City’s parks.

Pension-Coordinated Fund—Due to the adoption of GASB Statement 68, this fund was established to account for the governmental funds net pension liability and related expense related to the PERA Coordinated (GERF) plan.

Pension-Police and Fire Fund— Due to the adoption of GASB Statement 68, this fund was established to account for the governmental funds net pension liability and related expense related to the PERA Police and Fire plan.

- 116 -



COMBINING STATEMENT OF NET POSITION


Risk EquipmentHealth LELS Employee Manage- Replace-

Insurance Health Benefit ment mentASSETS

Cash and cash equivalents 1,750,888$ 313,599$ 5,655,578$ 1,288,010$ 1,898,838$ Receivables—Net— Customers and other 788 - - - - Due from other funds - - - - - Prepaid items - - - - -

Total assets 1,751,676 313,599 5,655,578 1,288,010 1,898,838

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflow - pension - - - - -

LIABILITIES AND NET POSITION

LIABILITIES: Accounts payable 255 313,337 - - - Accrued salaries and compensation - - 2,788,226 - - Net pension liability - - - - - Unavailable revenue - - - - - Outstanding and incurred, but not reported claims 148,000 - - - -

Total liabilities 148,255 313,337 2,788,226 - -


Deferred inflow - pension - - - - -

NET POSITION

Restricted 1,603,421 262 2,867,352 1,288,010 1,898,838 Unrestricted—Internal Service Fund - - - - -

Total net position 1,603,421$ 262$ 2,867,352$ 1,288,010$ 1,898,838$

- 117 -

InfrastructureReplace- Park Pension- Pension-

Facilities ment Revolving Coordinated Police & Fire Total

2,779,753$ 3,848,089$ 50,000$ - $ - $ 17,584,755$

- - - - - 788 - - - - - - - - - - - -

2,779,753 3,848,089 50,000 - - 17,585,543

- - - 466,996 5,435,443 5,902,439

- - - - - 313,592

- - - - - 2,788,226 - - - 3,623,246 4,992,971 8,616,217 - - - - - -

- - - - - 148,000

- - - 3,623,246 4,992,971 11,866,035

- - - 748,246 7,614,032 8,362,278

2,779,753 3,848,089 50,000 14,335,725 - - - (3,904,496) (7,171,560) (11,076,056)

2,779,753$ 3,848,089$ 50,000$ (3,904,496)$ (7,171,560)$ 3,259,669$

- 118 -



COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION


Risk Equipment Health LELS Employee Manage- Replace-

Insurance Health Benefit ment ment

OPERATING REVENUES: Charges to city departments 1,484,415$ - $ - $ - $ - $ Other charges and services 636,098 - 173,716 - - Refunds and reimbursements 270,278 - - 13,528 14,775

Total operating revenues 2,390,791 - 173,716 13,528 14,775

OPERATING EXPENSES: Salaries and employee benefits - - 173,716 - - Health insurance claims and fees 1,525,089 - - - - Health insurance stop-loss premium 431,625 - - - - Pension expense - - - - - Contractual services 306,183 - - 346,034 -

Total operating expenses 2,262,897 - 173,716 346,034 -

OPERATING INCOME (LOSS) 127,894 - - (332,506) 14,775

NONOPERATING REVENUES— Investment earnings 27,184 - - 27,217 45,561

Total nonoperating revenues 27,184 - - 27,217 45,561

INCOME (LOSS) BEFORE TRANSFERS 155,078 - - (305,289) 60,336

TRANSFERS IN 260,000 - - - 50,002

TRANSFERS OUT - - - (4) (467,717)

CHANGE IN NET POSITION 415,078 - - (305,293) (357,379)

NET POSITION—Beginning of year 1,188,343 262 2,867,352 1,593,303 2,256,217

NET POSITION—End of year 1,603,421$ 262$ 2,867,352$ 1,288,010$ 1,898,838$

- 119 -

InfrastructureReplace- Park Pension- Pension-

Facilities ment Revolving Coordinated Police & Fire Total

- $ - $ - $ 332,657$ 866,081$ 2,683,153$ - - - 7,586 63,315 880,715 - - - - - 298,581

- - - 340,243 929,396 3,862,449

- - - 447,400 777,778 1,398,894 - - - - - 1,525,089 - - - - - 431,625 - - - - - - - - - - - 652,217

- - - 447,400 777,778 4,007,825

- - - (107,157) 151,618 (145,376)

54,731 74,920 - - - 229,613

54,731 74,920 - - - 229,613

54,731 74,920 - (107,157) 151,618 84,237

50,002 50,000 50,000 - - 460,004

(68,500) - - - - (536,221)

36,233 124,920 50,000 (107,157) 151,618 8,020

2,743,520 3,723,169 - (3,797,339) (7,323,178) 3,251,649

2,779,753$ 3,848,089$ 50,000$ (3,904,496)$ (7,171,560)$ 3,259,669$

- 120 -



COMBINING STATEMENT OF CASH FLOWS


Risk Health LELS Employee Manage-

Insurance Health Benefit ment

CASH FLOWS FROM OPERATING ACTIVITIES:Receipts from customers 2,390,487$ - $ 173,716$ 13,528$ Service charges - - 173,716 - Payments to suppliers (2,442,206) - (173,716) (348,533)

Net cash (used in) provided by operating activities (51,719) - 173,716 (335,005)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Unavailable revenue—decrease (2,283) (63,925) - - Due to other funds - - - - Due from other funds - - - - Transfers to other funds - - - (4) Transfers from other funds 260,000 - - -

Net cash provided by (used in)noncapital financing activities 257,717 (63,925) - (4)

CASH FLOWS FROM INVESTING ACTIVITIES—Interest received 27,184 - - 27,217

INCREASE (DECREASE) IN CASH ANDCASH EQUIVALENTS 233,182 (63,925) 173,716 (307,792)

CASH AND CASH EQUIVALENTS—Beginning of year 1,517,706 377,524 5,481,862 1,595,802

CASH AND CASH EQUIVALENTS—End of year 1,750,888$ 313,599$ 5,655,578$ 1,288,010$

RECONCILIATION OF OPERATING (LOSS)INCOME TO NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES:Operating income (loss) 127,894$ - $ - $ (332,506)$ Adjustments to reconcile operating

income (loss) to net cash (used in) provided by operating activities — Changes in assets and liabilities:

Customer receivables (304) - - - Deferred outflow - pension - - - - Accounts payable (179,309) - - (2,499) Net pension liability - - - - Deferred inflow - pension - - - - Other accrued liabilities - - 173,716 -

Net cash (used in) provided by operating activities (51,719)$ - $ 173,716$ (335,005)$

- 121 -

Equipment InfrastructureReplace- Replace- Park Pension- Pension-

ment Facilities ment Revolving GERF PEPFF Total

14,775$ - $ - $ - $ - $ - $ 2,592,506$ - - - - 332,657 866,081 1,372,454 - - - - (332,657) (866,081) (4,163,193)

14,775 - - - - - (198,233)

- - - - - - (66,208) - - - - - - - - 53,000 50,000 50,000 - - 153,000

(467,717) (68,500) - - - - (536,221) 50,002 50,002 - - - - 360,004

(417,715) 34,502 50,000 50,000 - - (89,425)

45,561 54,731 74,920 - - - 229,613

(357,379) 89,233 124,920 50,000 - - (58,045)

2,256,217 2,690,520 3,723,169 - - - 17,642,800

1,898,838$ 2,779,753$ 3,848,089$ 50,000$ - $ - $ 17,584,755$

14,775$ - $ - $ - $ (107,157)$ 151,618$ (145,376)$

- - - - - - (304) - - - - 510,489 2,417,412 2,927,901 - - - - - - (181,808) - - - - 43,612 215,629 259,241 - - - - (446,944) (2,784,659) (3,231,603) - - - - - - 173,716

14,775$ - $ - $ - $ - $ - $ (198,233)$

- 122 -


GENERAL FUNDSCHEDULE OF REVENUES—BUDGET AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2019

FinalBudget Actual Variance

GENERAL PROPERTY TAX: Ad valorem 6,049,479$ 5,908,146$ (141,333)$ Delinquent ad valorem taxes - 104,001 104,001 Penalties and interest - 38,948 38,948

Total general property taxes 6,049,479 6,051,095 1,616

FRANCHISE FEES: Cable TV 360,000 395,932 35,932 Electric 1,100,000 1,050,264 (49,736)

Total franchise fees 1,460,000 1,446,196 (13,804)

LICENSES AND PERMITS: Business 146,400 154,913 8,513

Nonbusiness 30,390 48,336 17,946

Total licenses and permits 176,790 203,249 26,459

FINES AND FORFEITS—Other fines and forfeits 188,000 180,579 (7,421)

INTERGOVERNMENTAL REVENUES: Shared taxes: State aid maintenance 321,283 318,176 (3,107) Payment in lieu of tax 17,000 31,101 14,101

State grants: Local government aid 8,022,095 8,022,095 -

Police training 20,000 31,700 11,700 Insurance aid 250,000 463,133 213,133 Market value credits - 1,540 1,540 State grants restricted to programs 10,000 76,382 66,382 State grants not restricted to programs 27,304 27,304 - Local—County road and bridge maintenance 20,000 22,159 2,159 Federal grants 20,000 52,707 32,707

Total intergovernmental revenues 8,707,682 9,046,297 338,615

INVESTMENT EARNINGS 3,000 272,907 269,907

NET INCREASE IN FAIR VALUE OF INVESTMENTS - 131,278 131,278

(Continued)

- 123 -


GENERAL FUNDSCHEDULE OF REVENUES—BUDGET AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2019


General government 5,900$ 12,811$ 6,911$ Public safety 88,458 109,966 21,508 Public works 1,000 640 (360) Inspections 60,000 60,000 - Investment fee 100 - (100) Admininistrative fee—Lodging tax 19,750 21,012 1,262 Recreation 185,000 131,825 (53,175) Water and sewer 266,900 266,900 - Port Authority 274,500 266,242 (8,258) Rents 60,085 59,433 (652) Commissions on sales 5,000 7,522 2,522 Refunds and reimbursements 4,100 110,150 106,050 Other 981,270 3,416 (977,854)

Total charges for services 1,952,063 1,049,917 (902,146)

CONTRIBUTIONS—Contributions - 52,033 52,033

Total revenues 18,537,014$ 18,433,551$ (103,463)$

(Concluded)

- 124 -


GENERAL FUNDSCHEDULE OF EXPENDITURES—BUDGET AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2019


GENERAL GOVERNMENT: Mayor—council: Salaries and employee benefits 113,755$ 110,333$ 3,422$ Supplies 4,700 3,171 1,529 Other services and charges 171,884 128,087 43,797

Total mayor—council 290,339 241,591 48,748

City clerk: Salaries and employee benefits 137,811 139,100 (1,289) Supplies 1,800 1,913 (113) Other services and charges 159,993 7,683 152,310

Total city clerk 299,604 148,696 150,908

City manager: Salaries and employee benefits 281,548 285,801 (4,253) Supplies 1,700 655 1,045

Other services and charges 7,777 3,776 4,001

Total city manager 291,025 290,232 793

Elections and voter registration: Salaries and employee benefits - - - Supplies - - -


Total elections and voter registration 55,265 48,589 6,676

Finance: Salaries and employee benefits 737,752 602,631 135,121 Supplies 68,915 86,952 (18,037) Other services and charges 538,376 429,227 109,149

Capital outlay 219,000 49,800 169,200

Total finance 1,564,043 1,168,610 395,433

Independent audit—


Assessing—

Other services and charges 112,400 112,400 -

Legal: Other services and charges 361,620 361,620 -

Total legal 361,620 361,620 -

(Continued)

- 125 -




GENERAL GOVERNMENT (continued): Merit board—

Other services and charges 500$ - $ 500$

Human rights commission— Supplies 350 133 217

Other services and charges 350 100 250

Total human rights commission 700 233 467

Cable television commission—

Other services and charges 20,000 42,074 (22,074)

Fine arts commission: Supplies 1,500 700 800

Other services and charges 6,000 328 5,672

Total fine arts commission 7,500 1,028 6,472

Human resources: Salaries and employee benefits 117,983 117,772 211 Supplies 300 28 272


Total human resources 139,668 138,063 1,605

Planning: Salaries and employee benefits 235,881 238,640 (2,759) Supplies 1,100 917 183


Total planning 348,417 302,782 45,635

Building maintenance: Salaries and employee benefits 202,714 200,312 2,402 Supplies 50,650 41,597 9,053 Other services and charges 46,799 24,743 22,056

Capital outlay 78,000 - 78,000

Total building maintenance 378,163 266,652 111,511

Central communications: Supplies 5,639 5,466 173 Other services and charges 40,650 30,975 9,675

Capital outlay - - -

Total central communications 46,289 36,441 9,848

Contingency—

Other services and charges 158,872 - 158,872

Total general government 4,226,405 3,294,326 932,079

(continued)

- 126 -




PUBLIC SAFETY (continued): Police: Salaries and employee benefits 4,964,872$ 4,946,069$ 18,803$ Supplies 245,900 204,168 41,732 Other services and charges 477,746 455,175 22,571

Capital outlay 105,000 108,633 (3,633)

Total police 5,793,518 5,714,045 79,473

Fire: Salaries and employee benefits 2,769,392 2,826,591 (57,199) Supplies 111,804 90,602 21,202 Other services and charges 155,765 170,818 (15,053)

Capital outlay - 66,872 (66,872)

Total fire 3,036,961 3,154,883 (117,922)

Emergency management:


Total emergency management 6,700 5,482 1,218

Safety and health coordinator: Salaries and employee benefits 50,231 50,336 (105) Supplies 6,286 2,698 3,588


Total safety and health coordinator 75,070 68,041 7,029

Flood control: Supplies 48,000 105,327 (57,327) Other services and charges 462,811 133,300 329,511

Capital outlay 670,000 - 670,000

Total flood control 1,180,811 238,627 942,184

Total public safety 10,093,060 9,181,078 911,982

HIGHWAYS AND STREETS: Engineering: Salaries and employee benefits 389,878 396,615 (6,737) Supplies 13,710 14,232 (522) Other services and charges 271,062 106,467 164,595 Capital outlay 24,000 23,198 802

Total engineering 698,650 540,512 158,138

(continued)

- 127 -




HIGHWAYS AND STREETS (continued): Streets and alleys: Salaries and employee benefits 1,026,949$ 1,173,203$ (146,254)$ Supplies 565,875 384,619 181,256 Other services and charges 342,234 397,928 (55,694)

Capital outlay 331,000 15,785 315,215

Total streets and alleys 2,266,058 1,971,535 294,523

Highways and street lighting: Supplies 235,000 214,138 20,862 Other services and charges 20,000 26,037 (6,037)

Total highways and street lighting 255,000 240,175 14,825

Central garage: Salaries and employee benefits 334,990 345,691 (10,701) Supplies 79,350 53,625 25,725 Other services and charges 84,636 97,639 (13,003)

Capital outlay 67,000 44,497 22,503

Total central garage 565,976 541,452 24,524

Public works: Salaries and employee benefits 61,837 51,665 10,172 Supplies 600 73 527 Other services and charges 1,900 362 1,538

Total public works 64,337 52,100 12,237

Total highways and streets 3,850,021 3,345,774 504,247

SANITATION AND WASTE REMOVAL— Compost site: Supplies 350 163 187 Other services and charges 55,100 26,163 28,937

Total compost site 55,450 26,326 29,124

ECONOMIC DEVELOPMENT: Community development: Salaries and employee benefits 261,418 271,608 (10,190) Supplies 3,400 2,235 1,165 Other services and charges 26,907 12,466 14,441

Total community development 291,725 286,309 5,416

(Continued)

- 128 -




ECONOMIC DEVELOPMENT (continued):

Community Development Matching: Salaries and employee benefits 85,692$ 86,584$ (892)$ Supplies 300 - 300


Total community development matching 94,992 87,589 7,403

Total economic development 386,717 373,898 12,819

PARK MAINTENANCE— Park maintenance: Salaries and employee benefits 1,401,304 1,455,539 (54,235) Supplies 210,600 178,252 32,348 Other services and charges 275,750 411,633 (135,883)

Capital outlay 217,000 209,291 7,709

Total park maintenance 2,104,654 2,254,715 (150,061)

Total expenditures 20,716,307$ 18,476,117$ 2,240,190$

Concluded

- 129 -


SENIOR ADVOCACY PROGRAM

SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE—BUDGET AND ACTUALFOR THE YEAR ENDED DECEMBER 31, 2019

Original Variance

and With

Final Final

Budget Actual Budget

REVENUES: Intergovernmental—Federal 24,517$ 25,743$ 1,226$ Investment earnings - 492 492 Charges for services 29,650 30,817 1,167

Total revenues 54,167 57,052 2,885

EXPENDITURES— Current: Salaries and employee benefits 142,017 142,904 (887) Contractual services 2,146 1,238 908 Supplies 1,500 516 984

Total expenditures 145,663 144,658 1,005

DEFICIENCY OF REVENUES OVER EXPENDITURES (91,496) (87,606) 3,890

OTHER FINANCING SOURCES— Operating transfers in 91,496 91,496 -

(DEFICIENCY) EXCESS OF REVENUES AND OTHER FINANCING SOURCES (UNDER) OVER EXPENDITURES - 3,890 3,890

FUND DEFICIT—Beginning of year (11,198) (11,198) -

FUND DEFICIT—End of year (11,198)$ (7,308)$ 3,890$

- 130 -


MUNICIPAL STATE AID FUND



Original Variance and With

Final Final

Budget Actual Budget

REVENUES: Intergovernmental— State of Minnesota grant 3,500,000$ 205,750$ (3,294,250)$ Investment earnings - 8,667 8,667

Total revenues 3,500,000 214,417 (3,285,583)

EXPENDITURES—


EXCESS OF REVENUES OVER

EXPENDITURES 3,500,000 214,417 (3,285,583)

OTHER FINANCING USES—

Transfers to other funds (3,500,000) (205,750) 3,294,250

(DEFICIENCY) EXCESS OF REVENUES AND OTHER FINANCING USES (UNDER) OVER EXPENDITURES - 8,667 8,667

FUND BALANCE—Beginning of year 287,554 287,554 -

FUND BALANCE—End of year 287,554$ 296,221$ 8,667$

- 131 -


DIKE CONSTRUCTION FUND



Original Varianceand With

Final FinalBudget Actual Budget

REVENUES—

Investment earnings - $ 4,067$ 4,067$

Total revenues - 4,067 4,067

EXPENDITURES—


(DEFICIENCY) EXCESS OF REVENUES (UNDER) OVER EXPENDITURES - 4,067 4,067



- 132 -


PERMANENT IMPROVEMENT REVOLVING CONSTRUCTION FUND


CHANGES IN FUND BALANCE—BUDGET AND ACTUAL


Original Variance and With

Final FinalBudget Actual Budget

REVENUES: Special assessments - $ - $ - $

Investment earnings - 6,970 6,970

Total revenues - 6,970 6,970

EXPENDITURES—Capital outlay 50,000 17,985 32,015

(DEFICIENCY) EXCESS OF REVENUES (UNDER) OVER EXPENDITURES (50,000) (11,015) 38,985

OTHER FINANCING USES—

Transfers to other funds - - -

(DEFICIENCY) EXCESS OF REVENUES (UNDER) OVER EXPENDITURES AND OTHER FINANCING SOURCES (50,000) (11,015) 38,985



- 133 -


SCHEDULE OF LONG-TERM OBLIGATIONS—PRIMARY GOVERNMENTAS OF DECEMBER 31, 2019

True Interest

Rate Authorized Outstanding

BONDED INDEBTEDNESS: G.O. Bonds supported by taxes: G.O. Tax Abatement Bonds of 2017B 2.25 % 4,805,000$ 4,300,000$

G.O. Enterprise Fund Bonds: G.O. Water Revenue Refunding Bonds of 2013A 0.96 1,685,000 - G.O. Airport Bonds of 2013A (Port Authority of Winona) 1.93 1,125,000 590,000 G.O. Sewer Revenue Bonds of 2017A 2.14 4,730,000 4,055,000

Total G.O. Enterprise Fund Bonds 7,540,000 4,645,000

OTHER INDEBTEDNESS: G.O. Equipment Certificates of 2015A 1.38 3,525,000 1,825,000

Total other indebtedness 3,525,000 1,825,000

15,870,000$ 10,770,000$

- 134 -

- 135 -

- 136 -

- 137 -

- 138 -

- 139 -

- 140 -

- 141 -


- 142 -

- 143 -

- 144 -


SCHEDULE OF SALARIES, EMPLOYEE BENEFITS, AND CLOTHING ALLOWANCE


Salaries Clothing/Full All and Tuition

Time Other Wages Pensions** Allowance***

GOVERNMENTAL FUNDS: General government 27.360 7.00 2,080,618$ 167,862$ 6,206$ Police 43.000 7.00 3,456,847 620,566 62,354 Fire 21.500 20.00 1,928,022 405,203 65,703 Safety and health coordinator 0.500 34,702 3,016 100 Highways and streets/public works 12.400 864,032 108,324 4,008 Park maintenance 17.550 1,080,672 103,316 3,430 Senior advocacy program 1.000 1.00 129,707 (10,041)

Total governmental funds 123.310 35.00 9,574,600 1,398,246 141,801

ENTERPRISE FUNDS: Water utility 9.100 606,026 74,364 3,095 Sanitary sewer utility/storm sewer 13.150 810,512 107,715 3,365 Inspections 5.000 312,312 28,468 885 Airport 1.000 64,881 8,533 200 Public transportation 0.140 11,297 847 Library 8.000 15.00 639,123 58,337 Recreation programs 11.300 53.00 1,011,361 65,474 436

Total enterprise funds 47.690 68.000 3,455,512 343,738 7,981

171.000 103.00 13,030,112$ 1,741,984$ 149,782$

* Reflects the employment of the City of Winona on December 31, 2019. Numbers from the Finance Department.

** Pensions include the following: PERA ($1,423,935) Fire—other ($10,650), Compensated absences adjustment ($241,553), and Retiree health insurance subsidy ($65,846).***Clothing/Tuition allowance include the following: Clothing ($106,782), Car ($3,300), Incentive ($35,678), Phone/Lump Sum ($725), and Tuition ($3,297). (Incentive pay is per union contract and includes paramedic certification, more-than-required license for water and sanitary sewer operators, additional monthly payment for the Police-Community Liaison officer and employees hired prior to a date in 1999 that took educational classes.)

of Employees*Number

- 145 -

Medicare/ Life andUnemployment Social Health Disability Dental Workers'Compensation Security Insurance Insurance Insurance Compensation Total

26,902$ 113,381$ 362,605$ 4,032$ 5,764$ 27,716$ 2,795,086$ 48,684 9,771 555,624 6,298 10,700 175,224 4,946,068 26,263 7,802 256,866 3,364 7,680 125,688 2,826,591

429 1,835 9,744 71 240 200 50,337 11,530 49,302 128,294 1,534 2,400 55,444 1,224,868 14,621 62,516 132,474 2,133 3,778 52,600 1,455,540 1,512 6,466 12,138 230 240 2,652 142,904

129,941 251,073 1,457,745 17,662 30,802 439,524 13,441,394

7,884 33,709 105,426 1,211 1,476 20,072 853,263 13,764 46,734 106,093 1,652 1,920 31,184 1,122,939 3,980 17,020 65,880 646 1,680 1,824 432,695

725 3,099 19,488 125 480 3,112 100,643 145 622 1,693 23 32 64 14,723

8,685 37,135 82,119 1,004 2,160 6,464 835,027 13,872 59,316 116,226 1,403 3,150 25,432 1,296,670

49,055 197,635 496,925 6,064 10,898 88,152 4,655,960

178,996$ 448,708$ 1,954,670$ 23,726$ 41,700$ 527,676$ 18,097,354$

- 146 -


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


Grantor Entity Federal Grantor/Pass-Through Identifying CFDA 2019 Grantor/Program Title Number Number Expenditures

U.S. DEPARTMENT OF TRANSPORTATION—Passed through the MN Department of Transportation:

Formula Grants for Other than Urbanized Areas-Operating 1032588 20.509 125,195$ Passed through Office of Aeronautics:

Construct Combined SRE and Sand Storage Building 1035106 20.106 67,145 Triggering Event Master Plan & ALP Update 1031976 20.106 110,587

Total U.S. Department of Transportation 302,927

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—Passed through Minnesota Housing Partnership:

Rural Capacity Building Program B-16-RCB-MN-0001 14.265 2,707 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES—

Passed through S.E. MN Area Agency on Aging:Special Programs for the Aging—Title III, Part B Grants for Supportive Services and Senior Centers 310-025 93.044 25,743

U.S. DEPARTMENT OF HOMELAND SECURITY—Passed through MN Department of Public Safety:

Disaster Grants 116416 97.036 50,000

Total expenditures of federal awards 381,377$

- 147 -


RECONCILIATION OF SCHEDULE OF EXPENDITURES OF FEDERALAWARDS TO COMPREHENSIVE ANNUAL FINANCIAL REPORT

TOTAL EXPENDITURES OF FEDERAL AWARDS 381,377$ Total federal grant revenue—2019 381,377

Other intergovernmental revenues:Shared taxes 349,277 State sources 11,796,062

Local sources 258,151

Total other intergovernmental revenues 12,403,490 TOTAL INTERGOVERNMENTAL REVENUES—

Governmental and proprietary funds (Primary Government) 12,784,867$

- 148 -


SECTION III

STATISTICAL SECTION


- 149 -

- 150 -

2010 2011 2012 2013

GOVERNMENTAL ACTIVITIES: Net investment in capital assets (2) 42,090,682$ 40,283,040$ 39,640,097$ 39,475,110$ Restricted 15,884,013 18,389,002 19,412,588 19,720,934 Unrestricted 9,270,479 8,842,796 8,967,044 9,388,145

Total 67,245,174$ 67,514,838$ 68,019,729$ 68,584,189$

BUSINESS-TYPE ACTIVITIES: Net investment in capital assets (2) 29,596,476$ 30,516,219$ 30,221,198$ 27,225,756$ Restricted 2,634,330 2,558,921 2,096,306 4,734,149 Unrestricted 13,374,783 14,328,382 16,981,843 19,496,518

Total 45,605,589$ 47,403,522$ 49,299,347$ 51,456,423$

TOTAL PRIMARY GOVERNMENT: Net investment in capital assets (2) 71,687,158$ 70,799,259$ 69,861,295$ 66,700,866$ Restricted 18,518,343 20,947,923 21,508,894 24,455,083 Unrestricted 22,645,262 23,171,178 25,948,887 28,884,663

Total 112,850,763$ 114,918,360$ 117,319,076$ 120,040,612$

Notes:

(1) Accounting standards require that net position be reported in three components in the financial

the City. Effective 2012 the title Net Position replaced Net Assets.

(2) Effective 2012, Net investment in capital assets replaced Investments in capital assets-net of related debt.

Data Source— Applicable years’ comprehensive annual financial report.

places a restriction on how the resources may be used, or (2) enabling legislation is enacted by

statements: invested in capital assets; restricted; and unrestricted. Net position are considered restricted only when (1) an external party, such as the State of Minnesota or the federal government,


GOVERNMENT-WIDE NET POSITION BY COMPONENT (Unaudited) (1)

LAST TEN CALENDAR YEARS(accrual basis of accounting)

- 151 -

TABLE I

December 31

2014 2015 2016 2017 2018 2019

39,590,760$ 38,105,916$ 41,149,166$ 38,029,620$ 39,797,737$ 39,045,971$ 19,876,212 21,613,037 18,732,791 21,670,101 19,889,494 19,225,003

9,299,097 3,213,376 644,182 (351,300) (242,460) 1,309,645

68,766,069$ 62,932,329$ 60,526,139$ 59,348,421$ 59,444,771$ 59,580,619$

31,804,192$ 39,768,680$ 43,666,626$ 40,428,663$ 43,275,814$ 44,833,874 3,879,093 4,515,193 2,800,524 5,196,375 6,914,662 1,565,872

21,058,230 20,897,820 21,221,418 24,205,700 20,351,642 25,781,276

56,741,515$ 65,181,693$ 67,688,568$ 69,830,738$ 70,542,118$ 72,181,022$

71,394,952$ 77,874,596$ 84,815,792$ 78,458,283$ 83,073,551$ 83,879,845$ 23,755,305 26,128,230 21,533,315 26,866,476 26,804,156 20,790,875 30,357,327 24,111,196 21,865,600 23,854,400 20,109,182 27,090,921

125,507,584$ 128,114,022$ 128,214,707$ 129,179,159$ 129,986,889$ 131,761,641$

- 152 -

For The Calendar Year Ended December 31,2010 2011 2012 2013

EXPENSES: General government 2,758,302$ 2,733,573$ 2,779,097$ 2,765,186$ Public safety 8,069,508 7,610,314 7,808,418 7,647,157 Highways and streets 3,808,737 4,062,121 4,616,226 5,200,298 Sanitation and waste removal 45,851 45,635 34,888 48,993 Economic development 763,675 851,661 548,383 645,040 Park maintenance 1,646,308 1,518,720 1,538,243 1,704,671 Interest and fiscal charges 175,759 131,150 102,332 67,716 Total expenses 17,268,140 16,953,174 17,427,587 18,079,061

PROGRAM REVENUES: Charges for services: General government 693,994 746,878 653,782 694,506 Public safety 242,744 223,841 309,834 263,241 Highways and streets 30,720 35,524 28,844 29,084 Economic development 58,300 87,638 61,894 46,697 Other 91,948 140,667 152,442 153,885 Operating grants and contributions 1,874,459 1,029,207 1,206,546 1,423,344 Capital grants and contributions 1,131,448 705,005 858,089 1,252,059 Total program revenues 4,123,613 2,968,760 3,271,431 3,862,816

NET EXPENSE (13,144,527) (13,984,414) (14,156,156) (14,216,245)

GENERAL REVENUES: Taxes: Property 5,016,384 5,208,768 5,254,948 5,220,064 Sales - - - 47,176 Franchise 1,205,739 1,304,498 1,245,615 1,379,806 Unrestricted grants and contributions 8,026,899 8,039,317 8,099,790 8,100,124 Gain on sale of capital assets - - - - Investment earnings 51,851 41,344 22,297 8,635 Premium on G.O. debt - - - - Other - - - - Total general revenues 14,300,873 14,593,927 14,622,650 14,755,805

NET TRANSFERS IN (OUT) (290,973) (339,849) 38,397 24,900

TOTAL NET TRANSFERS AND GENERAL REVENUES 14,009,900 14,254,078 14,661,047 14,780,705

CHANGE IN NET POSITION (1) 865,373$ 269,664$ 504,891$ 564,460$

Notes:(1) In 2012, Net Position replaced Net Assets.

Data Source — Applicable years’ comprehensive annual financial report.


CHANGES IN NET POSITION—GOVERNMENTAL ACTIVITIES (Unaudited) (1)


- 153 -

TABLE II

2014 2015 2016 2017 2018 2019

2,973,611$ 3,046,766$ 3,752,691$ 3,531,369$ 3,344,377$ 3,595,492$ 7,744,276 8,464,231 10,330,117 9,786,944 9,827,324 10,289,817 5,092,421 4,944,205 5,357,252 5,774,474 5,502,132 4,572,968

37,585 50,975 38,655 52,130 52,481 26,325 700,782 561,572 786,820 536,327 322,818 401,143

1,739,944 1,919,498 1,760,105 1,887,323 1,964,055 2,336,745 38,315 18,836 103,964 64,910 54,100 45,500

18,326,934 19,006,083 22,129,604 21,633,477 21,067,287 21,267,990

771,056 740,701 798,786 830,294 874,844 983,416 239,939 238,467 254,008 274,383 296,348 304,649 85,433 31,548 65,688 27,314 34,930 33,520

9,660 46,756 90,350 28,648 14,396 93,822 159,304 183,203 194,499 179,346 207,603 135,101

1,078,501 1,208,768 1,087,916 1,075,042 926,070 1,042,133 1,010,378 2,692,813 1,319,137 1,036,673 1,230,055 356,213 3,354,271 5,142,256 3,810,384 3,451,700 3,584,246 2,948,854

(14,972,663) (13,863,827) (18,319,220) (18,181,777) (17,483,041) (18,319,136)

5,202,393 5,651,870 5,961,916 6,669,530 6,902,318 7,375,944 - - - - -

1,431,656 1,365,415 1,425,625 1,470,411 1,485,669 1,446,196 8,637,847 8,638,784 8,690,751 8,689,990 8,835,032 8,845,516

- 44,550 12,500 - - 18,478 22,815 183,639 216,980 573,241 763,890

- - - 172,738 - - - 140,432 - - -

15,290,374 15,863,866 16,274,431 17,219,649 17,796,260 18,431,546

(135,831) (58,824) (361,401) (215,590) 101,808 23,437

15,154,543 15,805,042 15,913,030 17,004,059 17,898,068 18,454,983

181,880$ 1,941,215$ (2,406,190)$ (1,177,718)$ 415,027$ 135,847$

- 154 -

2010 2011 2012 2013

EXPENSES: General government 16.0 % 16.1 % 15.9 % 15.3 % Public safety 46.7 44.9 44.8 42.3 Highways and streets 22.1 24.0 26.5 28.7 Sanitation and waste removal 0.3 0.3 0.2 0.3 Economic development 4.4 5.0 3.2 3.6 Park maintenance 9.5 8.9 8.8 9.4 Interest and fiscal charges 1.0 0.8 0.6 0.4

Total expenses 100.0 % 100.0 % 100.0 % 100.0 %

PROGRAM REVENUES: Charges for services: General government 16.8 % 25.2 % 20.0 % 18.0 % Public safety 5.9 7.5 9.5 6.8 Highways and streets 0.7 1.2 0.9 0.8 Economic development 1.4 3.0 1.9 1.2 Other 2.2 4.7 4.6 4.0 Operating grants and contributions 45.5 34.7 36.9 36.8 Capital grants and contributions 27.5 23.7 26.2 32.4

Total program revenues 100.0 % 100.0 % 100.0 % 100.0 %

GENERAL REVENUES: Taxes: Property 35.1 % 35.7 % 35.9 % 35.4 % Sales - - - 0.3 Franchise 8.4 8.9 8.5 9.3 Unrestricted grants and contributions 56.1 55.1 55.4 54.9 Gain on sale of capital assets - - - - Investment earnings 0.4 0.3 0.2 0.1 Premium on G.O. debt - - - - Other - - - -

Total general revenues 100.0 % 100.0 % 100.0 % 100.0 %

Notes:(1) In 2012, Net Position replaced Net Assets.

Data Source—Table II.


CHANGES IN NET POSITION—GOVERNMENTAL ACTIVITIES—


PERCENTAGE OF TOTAL (Unaudited) (1)

- 155 -

TABLE III

2014 2015 2016 2017 2018 2019

16.2 % 16.0 % 16.9 % 16.3 % 15.9 % 16.9 %42.3 44.5 46.7 45.2 46.6 48.4 27.8 26.0 24.2 26.7 26.1 21.5

0.2 0.3 0.2 0.3 0.2 0.1 3.8 3.0 3.6 2.5 1.5 1.9 9.5 10.1 7.9 8.7 9.4 11.0 0.2 0.1 0.5 0.3 0.3 0.2

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

14.4 % 14.4 % 21.0 % 24.1 % 24.4 % 33.4 %7.2 4.6 6.7 8.0 8.3 10.3 2.5 0.6 1.7 0.8 1.0 1.1 0.3 0.9 2.4 0.8 0.4 3.2 4.7 3.6 5.1 5.2 5.8 4.6

32.2 23.5 28.5 31.1 25.8 35.3 30.1 52.4 34.6 30.0 34.3 12.1

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

34.0 % 35.6 % 36.6 % 38.7 % 38.8 % 40.0 % - - - - - -

9.4 8.6 8.8 8.5 8.4 7.9 56.5 54.5 53.4 50.5 49.6 48.0 - 0.3 0.1 - - -

0.1 0.1 1.1 1.3 3.2 4.1 - - - 1.0 - - - 0.9 - - - -

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

For the Calendar Year Ended December 31,

- 156 -

For the Calendar Year Ended December 31,

2010 2011 2012 2013EXPENSES: Water 2,367,557$ 2,297,415$ 2,407,299$ 2,400,217$ Sanitary Sewer 2,433,420 2,694,866 2,731,544 2,472,995 Inspections 471,289 396,645 342,585 344,620 Airport 326,625 394,964 382,734 1,000,161 Public Transportation 617,609 699,450 691,364 780,964 Recreation 1,505,246 1,659,898 1,797,826 1,546,333 Library 1,033,555 985,856 931,196 1,053,224 Storm Sewer 198,936 159,406 282,245 230,614

Total expenses 8,954,237 9,288,500 9,566,793 9,829,128

PROGRAM REVENUES: Charges for services: Water 3,192,309 3,286,008 3,658,003 3,671,267 Sanitary Sewer 2,822,274 2,928,524 3,401,815 3,341,558 Inspections 381,550 499,047 424,325 397,566 Airport 34,917 38,352 36,828 41,157 Public Transportation 244,483 239,274 239,707 242,910 Recreation 383,389 384,781 421,892 420,102 Library 51,202 43,298 39,859 37,503 Storm Sewer 297,383 306,532 388,544 310,774 Operating grants and contributions 954,596 845,148 798,848 1,000,432 Capital grants and contributions 21,766 328,994 142,561 652,024

Total program revenues 8,383,869 8,899,958 9,552,382 10,115,293

NET REVENUE (EXPENSE) (570,368) (388,542) (14,411) 286,165

GENERAL REVENUES: Property taxes 633,313 657,790 821,748 758,789 Unrestricted grants 1,181,629 1,173,526 1,114,850 1,124,850 Investment earnings 14,141 15,310 12,035 12,172 Premium on G.O. debt - - - -

Total general revenues 1,829,083 1,846,626 1,948,633 1,895,811

NET TRANSFERS (OUT) IN 290,973 339,849 (38,397) (24,900)

Total net transfers and general revenues 2,120,056 2,186,475 1,910,236 1,870,911

CHANGE IN NET POSITION (1) 1,549,688$ 1,797,933$ 1,895,825$ 2,157,076$

Notes —(1) In 2012, Net Position replaced Net Assets.Data Source — Applicable years' comprehensive annual financial report.


CHANGES IN NET POSITION—BUSINESS-TYPE ACTIVITIES (Unaudited) (1)LAST TEN CALENDAR YEARS(accrual basis of accounting)

- 157 -

TABLE IV

2014 2015 2016 2017 2018 2019

2,337,243$ 2,417,436$ 2,454,012$ 2,658,820$ 2,538,867$ 2,854,017$ 2,813,212 2,957,252 2,927,234 3,185,846 3,616,609 3,177,598

320,560 374,175 445,107 450,955 436,662 559,332 314,599 317,004 255,060 513,450 952,410 930,165 800,341 725,671 748,522 740,448 931,667 1,049,367

1,700,674 1,652,476 1,838,384 1,880,750 2,045,707 2,017,924 1,035,774 1,086,920 1,156,984 1,117,575 1,029,399 1,232,115

227,480 213,250 187,363 273,604 239,978 273,280

9,549,883 9,744,184 10,012,666 10,821,448 11,791,299 12,093,798

3,605,132 3,609,862 3,507,514 3,441,024 3,548,426 3,484,011 3,145,712 3,468,352 3,073,652 3,084,839 3,215,067 3,334,220

459,849 558,614 641,470 468,576 566,162 845,723 37,425 37,448 34,402 31,477 30,423 29,415

251,813 244,252 242,047 254,705 266,269 249,808 413,629 462,250 487,358 478,066 508,537 521,019 33,291 38,676 32,778 20,689 22,574 21,082

345,379 327,758 346,971 348,661 380,775 408,662 1,023,606 900,561 1,078,529 1,077,797 1,210,366 -

3,468,945 8,088,514 518,735 966,191 129,844 1,589,359

12,784,781 17,736,287 9,963,456 10,202,025 9,878,443 10,483,299

3,234,898 7,992,103 (49,210) (619,423) (1,912,856) (1,610,499)

762,621 763,155 890,045 958,365 1,184,055 1,275,551 1,124,850 1,181,271 1,187,280 1,190,215 1,180,280 1,402,175

26,892 37,286 117,359 253,355 508,934 595,114 - - - 11,740 - -

1,914,363 1,981,712 2,194,684 2,413,675 2,873,269 3,272,840

135,831 58,824 361,401 347,918 (101,808) (23,437)

2,050,194 2,040,536 2,556,085 2,761,593 2,771,461 3,249,403

5,285,092$ 10,032,639$ 2,506,875$ 2,142,170$ 858,605$ 1,638,904$

- 158 -

- 159 -

- 160 -

- 161 -

- 162 -


GENERAL GOVERNMENTAL REVENUES BY SOURCE (Unaudited) (1)

LAST TEN CALENDAR YEARS(Modified accrual basis of accounting)

2010 2011 2012 2013

Amount

REVENUE SOURCE: Taxes (2) 6,203,216$ 6,538,843$ 6,473,465$ 6,627,765$ Special assessments 360,876 362,968 238,891 210,542 Intergovernmental 10,906,571 9,588,783 9,903,534 10,177,666 Licenses and permits 155,661 169,473 165,798 174,982 Fines and forfeitures 222,562 211,375 228,408 168,112 Charges for services 750,177 878,153 879,329 891,743 Contributions 6,621 8,206 21,999 449,365 Investment earnings 46,327 35,813 16,978 5,059 Miscellaneous 6,786 88 -

Total revenues 18,658,797$ 17,793,702$ 17,928,402$ 18,705,234$

PERCENTAGE CHANGE FROM PRIOR YEAR 3.8 % (4.6)% 0.8 % 4.3 %

Taxes (2) 33.2 % 36.7 % 36.1 % 35.4 % Special assessments 1.9 2.0 1.3 1.1 Intergovernmental 58.5 53.9 55.3 54.4 Licenses and permits 0.8 1.0 0.9 0.9 Fines and forfeitures 1.2 1.2 1.3 0.9 Charges for services 4.0 4.9 4.9 4.8 Contributions 0.1 0.1 0.1 2.4 Investment earnings 0.2 0.2 0.1 0.1

Total revenues 100.0 % 100.0 % 100.0 % 100.0 %

Notes:(1) Includes all governmental fund types.(2) For explanations of significant changes in tax revenues, see Table VIII.

Data Source— Applicable years' comprehensive annual financial report.

- 163 -

TABLE VII

For The Calendar Year Ended December 31,2014 2015 2016 2017 2018 2019

6,645,411$ 7,010,216$ 7,335,151$ 8,186,954$ 8,339,541$ 8,735,845$ 173,440 147,448 106,000 93,238 127,590 12,664

10,488,089 10,475,964 10,893,470 10,401,417 10,511,025 10,041,266 177,642 172,154 171,077 185,143 198,675 203,249 162,011 162,745 177,413 179,987 192,157 180,579 983,587 1,113,391 1,036,813 1,016,426 1,038,844 1,120,254 65,197 1,916,952 98,333 307,051 352,542 189,932 7,672 9,857 153,597 157,881 445,098 534,278

- - - - - -

18,703,049$ 21,008,727$ 19,971,854$ 20,528,097$ 21,205,472$ 21,018,067$

(0.1)% 12.3 % (4.9)% 2.8 % 3.3 % (0.9)%

Percentage of Total

35.5 % 33.4 % 36.7 % 39.9 % 39.3 % 41.5 %0.9 0.7 0.5 0.4 0.6 0.1

56.1 49.9 54.5 50.7 49.6 47.8 0.9 0.8 0.9 0.9 0.9 1.0 0.9 0.7 0.9 0.9 0.9 0.9 5.3 5.3 5.2 4.9 4.9 5.3 0.3 9.1 0.5 1.5 1.7 0.9 0.1 0.1 0.8 0.8 2.1 2.5

100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

- 164 -

TABLE VIII

Property Franchise Sales Total

2010 4,997,477$ 1,205,739$ - $ 6,203,216$ 2011 5,234,345 1,304,498 6,538,843 2012 5,227,850 1,245,615 6,473,465 2013 5,247,958 1,379,807 6,627,765 2014 5,213,756 1,431,655 6,645,411 2015 5,644,801 1,365,415 7,010,216 2016 5,909,526 1,425,625 7,335,151 2017 6,716,544 1,470,410 8,186,954 2018 6,853,872 1,485,669 8,339,541 2019 7,289,649 1,446,196 8,735,845

Property Franchise Sales Total

2010 80.6 % 19.4 % 0.0 % 100.0 %2011 80.1 19.9 100.0 2012 80.8 19.2 100.0 2013 79.2 20.8 100.0 2014 78.5 21.5 100.0 2015 80.5 19.5 100.0 2016 80.6 19.4 100.0 2017 82.0 18.0 100.0 2018 83.4 16.6 100.0 2019

Notes:

Data Source— Applicable years' comprehensive annual financial report.

(1) Includes all governmental fund types.


FOR THE LAST TEN CALENDAR YEARS ENDED DECEMBER 31(modified accrual basis of accounting)

Amounts

Percentage of Total

TAX REVENUES BY SOURCE—GOVERNMENTAL FUNDS (Unaudited) (1)

- 165 -


- 166 -


GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (Unaudited) (1)

FOR THE LAST TEN CALENDAR YEARS ENDED DECEMBER 31(modified accrual basis of accounting)

Function 2010 2011 2012 2013

CURRENT EXPENDITURES: General government 2,683,792$ 2,696,087$ 2,716,895$ 2,598,999$ Public safety 7,286,443 6,640,661 7,037,736 6,644,687 Highways and streets 2,657,992 2,625,036 2,580,500 2,773,739 Sanitation and waste removal - - - - Economic development 757,831 837,643 542,169 631,552 Park maintenance 1,498,905 1,389,884 1,391,948 1,508,534 Other 45,851 45,635 34,888 48,993

Total current expenditures 14,930,814 14,234,946 14,304,136 14,206,504

PERCENTAGE CHANGE FROM PRIOR YEAR (0.4)% (4.7)% 0.5 % (0.7)%

CAPITALIZED CAPITAL OUTLAY (2) 729,594 449,514 (109,643) (9,336)

PERCENTAGE CHANGE FROM PRIOR YEAR 110.9 % (38.4)% (124.4)% (91.5)%

DEBT SERVICE: Principal 1,300,000 1,220,000 1,035,000 1,260,000 Interest and fees 177,809 166,171 105,338 69,512 Other - - - -

Total debt service 1,477,809 1,386,171 1,140,338 1,329,512

PERCENTAGE CHANGE FROM PRIOR YEAR (6.7)% (6.2)% (17.7)% 16.6 %

Total expenditures (3) 17,138,217$ 16,070,631$ 15,334,831$ 15,526,680$

PERCENTAGE CHANGE FROM PRIOR YEAR 1.3 % (6.2)% (4.6)% 1.3 %

DEBT SERVICES AS A PERCENT OF NONCAPITAL EXPENDITURES (4) 9.0 % 8.9 % 7.4 % 8.6 %

Reconciliation of total expenditures: Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental Funds to Table IX

Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds:Total expendituresCapital outlay

Table IX: Capitalized capital outlay Table IX: Total expenditures

Notes:

Gov't Wide capitalized capital outlay (2010 and on). See reconciliation above.(4) Effective 2018, Capitalized capital outlay includes construction in progress.(5) Effective 2018, the total debt service divided by the result of total current expenditures less capitalized capital outlay.

Data Source — Applicable years' comprehensive annual financial report.

(1) Includes all governmental fund types.(2) The significant increase in 2010 is due to the Pelzer Street project being finalized and the reduction in construction in progress being added to 2010 capital outlay. Capitalized capital outlay used 2010 and on.(3) Total expenditures are those from the governmental statements with the change to capital outlay to reflect the

- 167 -

TABLE IX

2014 2015 2016 2017 2018 2019

2,857,647$ 2,743,185$ 2,993,716$ 3,156,399$ 3,244,297$ 3,389,184$ 6,845,541 7,016,825 7,869,498 8,031,135 8,674,315 9,005,573 2,736,904 2,589,852 2,851,463 2,815,893 2,815,196 3,262,294

- - - - 52,481 26,326 702,873 566,838 786,819 523,577 337,158 383,157

1,579,981 1,608,680 1,730,687 1,621,909 1,877,356 2,066,434 37,585 50,975 38,655 52,130 -

14,760,531 14,576,355 16,270,838 16,201,043 17,000,803 18,132,968

3.9 % (1.2)% 11.6 % (0.4)% 4.9 % 6.7 %

1,392,986 3,416,241 1,582,528 596,967 3,291,599 1,299,173

15020.6 % 145.2 % (53.7)% (62.3)% 451.4 % (60.5)%

780,000 785,000 715,000 715,000 560,000 805,000 43,989 79,239 106,129 171,414 216,059 164,675

- - - - - -

823,989 864,239 821,129 886,414 776,059 969,675

(38.0)% 4.9 % (5.0)% 8.0 % (12.4)% 24.9 %

16,977,506$ 18,856,835$ 18,674,495$ 17,684,424$ 21,068,461$ 20,401,816$

9.3 % 11.1 % (1.0)% (5.3)% 19.1 % (3.2)%

5.3 % 5.6 % 4.8 % 5.2 % 5.7 % 5.8 %

2015 2016 2017 2018 2019

20,367,527$ 22,850,319$ 22,324,030$ 23,003,097$ 20,527,151$ (4,926,933) (5,758,352) (5,236,573) (5,226,235) (1,424,508) 3,416,241 1,582,528 596,967 3,291,599 1,299,173

18,856,835$ 18,674,495$ 17,684,424$ 21,068,461$ 20,401,816$

- 168 -

- 169 -

- 170 -

- 171 -

- 172 -

- 173 -

- 174 -

TABLE XIII

Year City Port School WinonaCollected Rate Authority District (1) County Total

2010 31.81 % 2.36 % 16.68 % 42.03 % 92.88 %2011 33.64 2.42 17.35 42.22 95.63 2012 35.15 2.64 18.86 43.54 100.19 2013 35.35 3.44 17.22 41.08 97.09 2014 34.71 3.17 15.97 38.43 92.28 2015 36.60 3.06 18.32 37.93 95.91 2016 40.95 2.84 21.12 38.85 103.76 2017 40.53 2.79 20.05 38.51 101.88 2018 41.60 2.84 22.20 39.70 106.34 2019 41.85 2.22 20.47 39.10 103.64

Data Source— Winona County Auditor

(1) For the school district, the MV tax rate is not included in the total tax rate above.Notes:


LAST TEN CALENDAR YEARS(rate per $1,000 of tax capacity)

Overlapping Rates Direct

DIRECT AND OVERLAPPING PROPERTY TAX RATES (Unaudited)

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TABLE XIV

For TheYear Total Percentage Delinquent Percentage

Collected Taxes Levied Amount of Levy Collections (2) Amount of Levy

2010 (3) 6,590,943$ 5,969,463$ 90.57 % 85,767$ 6,055,230$ 91.87 %2011 (3) 6,816,772 6,205,360 91.03 59,642 6,265,002 91.91 2012 6,528,644 6,436,327 98.59 65,001 6,501,328 99.58 2013 6,605,703 6,505,901 98.49 71,038 6,576,939 99.56 2014 6,513,266 6,450,367 99.03 55,076 6,505,443 99.88 2015 6,944,004 6,883,849 99.13 44,740 6,928,589 99.78 2016 7,367,185 7,245,056 98.34 107,493 7,352,549 99.80 2017 8,143,022 8,075,272 99.17 30,152 8,105,424 99.54 2018 8,712,334 8,558,168 98.23 107,375 8,665,543 99.46 2019 9,180,758 8,967,503 97.68 8,967,503 97.68

Notes:

Port Authority.

Data Source:

Winona County Auditor

City Finance Department


PROPERTY TAX LEVIES AND COLLECTIONS (Unaudited) (1)LAST TEN CALENDAR YEARS

Collected Within the

(1) This table includes the primary government and the discretely presented component unit, the

Total Collections to Date

Minnesota discontinued the reimbursement program (due to budget reductions). This is the reason(3) In 2010 and 2011, the market value credit revenues paid to the City was short by $467,000 because the State of

that there is a large drop in the percentage of levy collections.

Year of The Levy

(2) The 2010-2011 amounts reported in the total uncollected taxes column are the uncollected taxes for each tax levy.

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TABLE XV


PRINCIPAL PROPERTY TAXPAYERS (Unaudited) FOR THE CALENDAR YEARS ENDED DECEMBER 31, 2019 AND 2010

2019 (For Taxes Payable in 2020)

Percentageof Total

Type of Tax TaxPrincipal Taxpayer Business Capacity (1) Rank Capacity

Northern States Power Co. Utility 465,233$ 1 2.16 %Rivers Development Commercial 390,224 2 1.81 Fastenal Company Commercial/Industrial 292,680 3 1.36 Mikrut Properties Commercial 246,997 4 1.15 Wal-Mart Commercial 211,456 5 0.98 Broadstone HLC Midwest LLC (Hal Leonard-Tech Park) Industrial/Commercial 200,700 6 0.93 Automotive Enterprises LLC Industrial/Commercial 188,192 7 0.87 Menard's Inc. Commercial/Industrial 178,462 8 0.83 Miller Waste Mills Commercial 165,639 9 0.77 Sarnia Realty Investors (Winona Clinic) Commercial 160,636 10 0.75

Total Principal Taxpayers 2,500,219 11.61 %

All Other Taxpayers 19,030,954 88.39 %

Total 21,531,173$ 100.00 %

2010 (For Taxes Payable in 2011)

Percentageof Total

Type of Tax TaxPrincipal Taxpayer Business Capacity (1) Rank Capacity

Northern State Power Co. Utility 340,515$ 1 1.78 %Rivers Development Commercial 272,674 2 1.42 Wal-Mart Commercial 261,152 3 1.36 Menards, Inc. Commercial 235,958 4 1.23 Fastenal Company Commercial/ Industrial 213,063 5 1.11 Miller Waste Mills Commercial 160,155 6 0.84 Sarnia Realty Investors (Winona Mall) Commercial 144,778 7 0.76 Mikrut Properties Commercial 136,675 8 0.71 Innovation Partners LLC (Hal Leonard-Tech Park)* Commercial 131,300 9 0.69 Mills Properties Commercial 126,768 10 0.66

Total Principal Taxpayers 2,023,038 10.56%

All Other Taxpayers 17,117,707 89.44 %

Total 19,140,745$ 100.00 %

Notes:

* Hal Leonard is no longer in JobZ (lower property tax zone) in 2017Data Source—Winona County Auditor

Each property is assigned a classification rate depending upon its use. (1) Tax capacity is determined by multiplying a property’s market value by its applicable classification rate.

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TABLE XX

2014 2015 2016 2017 2018 2019

1,527,210,600$ 1,548,878,700$ 1,586,033,600$ 1,632,372,600$ 1,783,625,700$ 1,839,421,600$

45,816,318$ 46,466,361$ 47,581,008$ 48,971,178$ 53,508,771$ 55,182,648$

4,545,000 6,495,000 5,340,000 13,705,000 12,370,000 10,770,000

(287,100) - - -

(2,045,000) (1,355,000) (1,020,000) (5,405,000) (4,740,000) (4,055,000)

2,212,900 5,140,000 4,320,000 8,300,000 7,630,000 6,715,000

43,603,418$ 41,326,361$ 43,261,008$ 40,671,178$ 45,878,771$ 48,467,648$

4.83 % 11.06 % 9.08 % 16.95 % 14.26 % 12.17 %

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TABLE XXI


Less: Net

Calendar Gross Operating Available Times

Year Revenues (2) Expenses (3) Revenues Principal Interest Total Coverage

2010 6,026,399$ 3,245,159$ 2,781,240$ 915,000$ 228,866$ 1,143,866$ 2.43 2011 6,227,574 3,477,056 2,750,518 960,000 189,948 1,149,948 2.39 2012 7,069,814 3,580,217 3,489,597 735,000 155,358 890,358 3.92 2013 7,023,500 3,370,604 3,652,896 720,000 146,391 866,391 4.22

2014 (4) 6,792,298 4,374,720 2,417,578 2,425,000 109,583 2,534,583 0.95 2015 7,109,943 4,001,816 3,108,127 690,000 37,600 727,600 4.27 2016 6,661,576 3,939,462 2,722,114 335,000 23,750 358,750 7.59 2017 6,726,981 4,267,548 2,258,315 345,000 110,373 455,373 4.96 2018 7,132,003 4,528,529 2,603,474 665,000 179,660 844,660 3.08 2019 7,270,396 4,240,659 3,029,737 685,000 117,025 802,025 3.78

Notes:(1) These revenue bonds are first secured by water and sewer revenue, and secondarily backed by the full

(2) Gross revenue includes charges for water and sewer services, other charges, tap fees, investment earnings and property taxes.(3) Operating expenses do not include depreciation, interest expense, or fiscal charges.(4) $1,680,000 in principal was paid from a refunding escrow account established for this purpose. Removing these principal payments would reduce principal payments to $745,000 and increase the coverage ratio to 2.83.Data Source— Applicable years’ comprehensive annual financial report.

PLEDGED REVENUE BOND COVERAGE (Unaudited) (1)LAST TEN CALENDAR YEARS

Water and Sewer Revenue Bonds

Debt Service

faith and credit of the City.

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TABLE XXII

City Personal UnitedMetropolitan Income (3) Per City States

City Area (thousands Capita Unemployment UnemploymentYear Population (1) Population (2) of dollars) Income (4) Rate (5) Rate (6)

2010 27,592 51,395 1,765,396$ 34,350$ 7.0 % 9.1 %2011 27,554 51,378 1,800,754 35,049 5.6 8.5 2012 27,782 51,629 1,960,950 37,982 5.1 7.8 2013 27,741 51,232 2,014,822 39,327 4.3 6.7 2014 27,581 51,097 2,129,531 41,676 2.9 5.6 2015 27,591 50,885 2,189,781 43,034 3.0 5.0 2016 27,478 50,948 2,259,754 44,354 3.4 4.7 2017 27,271 50,873 2,419,600 47,561 2.4 4.1 2018 27,207 50,825 2,543,065 50,036 2.6 3.9 2019 27,207 50,825 2,543,065 50,036 2.8 3.5


DEMOGRAPHIC AND ECONOMIC FACTORS (Unaudited)

LAST TEN CALENDAR YEARS

Data Source: (1) State demographer's estimate, except 2010, which is from the 2010 Census. 2019 not available.(2) 2010–2018—U.S. Bureau of Economic Analysis - Winona, MN Metropolitan Area,

(Rates are not seasonally adjusted.)

(6) Minnesota Department of Employment and Economic Development (Rates are not seasonally adjusted for 12/31/10).

http://www.bea.gov/regional/index.htm. 2019 not available.(3) 2010–2018—U.S. Bureau of Economic Analysis - Winona, MN Metropolitan Area, http://www.bea.gov/regional/index.htm. 2019 not available.(4) 2010–2018—U.S. Bureau of Economic Analysis - Winona, MN Metropolitan Area, http://www.bea.gov/regional/index.htm. 2019 not available.(5) Minnesota Department of Employment and Economic Development,

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TABLE XXIII

Pe rc e nta ge of

Type of Number of Total CountyEmployer (1) Business Employees Rank Employment

Fastenal Company (3) Commercial/Industrial 1,763 1 6.24 %Winona State University Post-secondary education 925 2 3.27 Winona Health Hospital/Clinic/Health Care 838 3 2.97 Wincraft Promotional materials 550 4 1.95 Winona Area Public Schools K-12 education 533 5 1.89 RTP Company Industrial 450 6 1.59 BSC Automotive Interface Sol. Electronic manufacturer 425 7 1.50 Saint Mary's University Post-secondary education 401 8 1.42 Winona County County Government 287 9 1.02 Watlow Controls Electronic Control manufacturer 285 10 1.01

Total principal employers 6,457 22.86

Other employers 21,792 77.14

Total employers (5) 28,249 100.00 %

Pe rc e nta ge of

Type of Number of Total CountyEmployer (2) Business Employees Rank Employment

Fastenal Company (3) Commercial/Industrial 1,169 1 4.42 %Winona Health Hospital/Health Care 950 2 3.59 Winona State University Post-secondary education 860 3 3.25 Independent School District No. 861 K-12 education 647 4 2.45 TRW Automotive Electronics Industrial machinery 550 5 2.08 Wincraft Promotional materials 420 6 1.59 RTP Company Plastic and synthetic resins 415 7 1.57 Saint Mary's University (4) Post-secondary education 377 8 1.43 Winona County County Government 375 9 1.42 Wal-Mart Commercial 250 10 0.95

Total principal employers 6,013 22.75

Other employers 12,188 77.25

Total employers (5) 26,437 100.00 %

Data Source:(1) City Community Development Demographic Report Data as of 1/1/2019(2) Official Statement—Bond Offering (City of Winona-March 2010)(3) Fastenal Company information(4) Saint Mary's University Finance Department(5) MN DEED, 2019 is at 12/2019 and 2009 is at 9/30/2009


PRINCIPAL EMPLOYERS (Unaudited)

FOR THE CALENDAR YEARS ENDED DECEMBER 31, 2019 AND 2009

2019

2009

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TABLE XXIV

Nonresidential Residential Tax

Collection Number Number

Year Taxable Nontaxable (1) of Permits Value (2) of Permits Value

2010 1,593,976,000$ 482,142,700$ 115 11,755,997$ 1,135 13,217,273$ 2011 1,564,029,700 625,833,300 168 15,533,885 1,358 26,189,526 2012 1,552,024,700 625,833,300 116 16,436,708 1,050 10,014,096 2013 1,523,278,300 625,833,300 115 12,119,264 802 9,186,331 2014 1,527,210,600 625,833,300 116 23,196,034 757 8,515,072 2015 1,548,878,700 625,833,300 140 27,246,499 637 12,079,801 2016 1,586,033,600 625,833,300 125 46,497,621 558 8,320,718 2017 1,632,372,600 665,990,100 104 16,287,543 560 10,019,568 2018 1,748,094,000 665,990,100 114 15,380,591 431 29,396,109 2019 1,783,625,700 665,990,100 109 73,975,522 455 9,349,378

(2) 2010 includes Bradford Development for $4,650,000 to construct a senior housing cooperative and $3,449,500

for the Benedictine Health Systems Assisted Living Apartments addition.

2011 residential includes McNally 16 Condos for $1,390,000, Gernes apartments for $900,000,

Saint Mary's University's Residential Hall for $5,580,400, and Winona Senior Living for $5,800,000

2012 includes the MN State SE Technical addition of $2,378,800 and CPI Banini addition of $3,000,000 are included.

2014 includes nonresidential includes the Dahl Auto new car dealership for $4.9 million and Cytec expansion for $4 million

2014 includes residential includes the Rivers Edge Condos development for $853,000

2015 nonresidential includes WinCraft's new manufacturing facility (125,000 sq ft) and Dahl Automotive's

construction of an addition/renovation of the Toyota dealership. Residential includes a major renovation to

Morningside Terrace's apartment building, the new construction of Hiawatha Valley Mental Health's apartment home

and a new 15-unit apartment building (Krause).

2016 nonresidential includes Saint Mary's University's construction of a new science building for $11,725,589, Winona State

University's construction of tunnels to connect the University and sports facilities for $4,384,914, Pelzer Hospitality LLC's

construction of a new four-story AmericInn for $4,048,400, Automotive Enterprise's redevelopment and completion of an

addition for a used car dealership for $3,450,000, and Immaculate Heart Seminary's remodeling project for $3,300,097.

2017 nonresidential includes Cytec Engineering's construction of a new concrete screen building for $2,800,000, Immaculate Heart

Seminary's construction of a 4 story addition and main entry elevator for $1,900,000, Menard's enclosure of their garden center

and mezzanine for $1,800,000, Winona State University's updates to current buildings for $1,309,000, Bluff Country Coop's

store expansion for $961,000 and Strifex LLC building an Arby's Restaurant for $750,000.

2018 residential includes construction of the Fairfield Inn by Marriott for $7,106,500, Bluffview Partners construction of a 76 unit

senior apartment building for $11,000,000, and Saint Mary's University's Residential Hall for $4,720,000.

2019 nonresidential includes Gundersen Lutheran's renovation of a former Kmart store into a clinic for $18,228,091, Main Square

Development's construction of a residential and commercial building in downtown Winona and a build-out for Winona Health for

$18,190,000, and Winona Health's construction of a new YMCA on campus for $17,328,473.

(4) City of Winona-Inspection Department

Property Value (3)

Notes:

(1) Tax-exempt property valuation is updated every six years.

Data Source:

(3) Winona County Assessor


PROPERTY VALUES AND CONSTRUCTION (Unaudited)


Estimated Construction (4) Construction (4)

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CITY EMPLOYEES BY FUNCTION/PROGRAM (Unaudited) (1) (2)

Function/Program 2010 2011 2012 2013

GENERAL FUND: General government: City manager 2.000 2.000 2.000 2.000 City clerk 1.225 1.195 1.195 1.195 Finance 7.000 7.000 8.000 7.000 Human resources 1.500 1.500 1.500 1.500 Planning 2.375 2.375 2.375 2.375 Building maintenance 2.275 2.000 2.000 2.000 Public safety: Police 41.500 41.500 41.000 41.000 Fire 21.500 22.000 21.500 21.500 Safety and health coordinator 1.000 1.000 1.000 0.500 Highways and streets: Engineering 4.000 4.000 4.000 4.000 Streets and alleys 13.000 12.000 12.000 12.000 Central garage 4.300 4.000 4.000 4.000 Public works 0.400 0.400 0.400 0.400 Park maintenance— Park maintenance 17.000 15.000 15.000 15.000 Tree crew Economic development: Community development 2.625 2.625 2.625 2.625 Community development-matching funds 1.000 0.625 0.625 0.625

Total general fund 122.700 119.220 119.220 117.720

Senior Advocacy Fund— Senior Advocacy 1.700 1.700 1.700 1.700

Central City Rehab Fund— Core Rehabilitation Program/East revitalization (beginning 2015) - 0.375 0.375 0.375

Water and Sanitary Sewer Funds: Water power and pumping/water distribution 9.275 8.000 8.000 8.000 Water/sanitary sewer—administration and general 1.100 1.100 1.100 1.100 Sanitary Sewer—administration and general 13.000 13.000 13.000 12.000

Total water and sanitary sewer funds: 23.375 22.100 22.100 21.100

Public Transportation Fund— Transit—administration and general 0.075 0.105 0.105 1.105

Airport Fund— Airport—administration and general 1.000 1.000 1.000 1.000

Recreation Fund: Recreation administration 2.250 2.000 2.000 2.000 Community services 1.500 1.350 1.250 1.250 Recreation programs 2.000 2.000 2.000 2.000 Senior center 4.000 4.000 4.000 4.000

Total Recreation Fund 9.750 9.350 9.250 9.250

Library Fund— Library administration 11.900 10.900 12.250 11.625

Storm Sewer Fund 0.300 0.300 0.300 0.800

Inspections Fund— Inspections 4.550 3.250 3.500 3.500

TOTAL 175.350 168.300 169.800 168.175

Notes:(1) Information presented in full-time equivalents.Data Source—(2) The City of Winona Finance Department—Current Year Budget Book


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TABLE XXV

2014 2015 2016 2017 2018 2019

2.000 2.000 2.000 2.000 2.000 2.000 1.195 1.195 1.195 1.195 1.160 1.160 8.000 8.000 8.000 8.000 8.000 8.000 1.500 1.500 1.700 1.700 1.700 1.700 1.875 1.875 2.875 2.375 2.375 2.375 2.000 2.000 2.100 2.150 2.150 2.150

41.000 42.000 43.000 42.000 43.000 43.000 22.000 21.750 22.000 22.000 22.000 23.000

0.500 0.500 0.500 0.500 0.500 0.500

4.000 4.200 4.500 4.350 4.350 4.350 12.000 12.000 12.000 12.000 12.000 12.000

4.000 4.000 4.000 4.000 4.000 4.000 0.400 0.400 0.400 0.400 0.400 0.400

15.000 11.500 12.400 12.150 13.150 13.150 4.000 4.000 4.000 5.000 5.000

2.625 2.625 2.625 2.625 2.625 2.625 0.750 0.750 0.750 1.000 1.000 1.000

118.845 120.295 124.045 122.445 125.410 126.410

1.700 1.700 1.700 1.900 1.900 2.000

0.250 0.250 0.250 - - -

8.000 8.000 8.000 8.000 8.000 8.000 1.100 1.100 1.100 1.100 1.100 1.100

12.000 12.000 12.000 12.000 12.000 12.000

21.100 21.100 21.100 21.100 21.100 21.100

0.105 0.105 0.105 0.105 0.140 0.140

1.000 1.000 1.000 1.000 1.000 1.000

2.000 2.000 2.000 1.000 1.000 1.000 1.250 1.250 1.000 0.850 0.850 0.850 2.000 2.500 2.500 5.850 5.850 5.850 4.000 4.000 4.000 4.000 4.000 4.000

9.250 9.750 9.500 11.700 11.700 11.700

11.625 11.625 11.375 11.375 11.000 11.000

0.800 0.800 1.000 1.150 1.150 1.150

3.500 3.750 4.000 4.000 5.000 5.000

168.175 170.375 174.075 174.775 178.400 179.500

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OPERATING STATISTICS BY FUNCTION/PROGRAM (Unaudited)


2010 2011 2012 2013Function/Program

Public safety: Fire: Number of emergency responses 2,070 2,176 2,124 2,134 Number of inspections 124 188 154 158 Police: Calls for service - 17,091 23,388 N/A Crime clearance 60 % 60 % 60 % 63 %

Sanitary Sewage system: Daily average treatment (in gallons) (1) 4,400,000 5,078,000 5,078,000 4,559,000 Maximum daily of capacity of treatment plant (in gallons) 9,600,000 9,600,000 9,600,000 9,600,000

Water system: Daily average consumption (in gallons) 2,860,000 2,928,000 2,928,000 2,890,000 Maximum daily capacity of plant (in gallons) 10,300,000 10,300,000 10,300,000 10,300,000

Data Source— The City's various departments (1) Number is from 2014

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TABLE XXVI

2014 2015 2016 2017 2018 2019

2,021 2,218 2,237 2,312 2,411 2,483 64 474 409 489 396 708

16,398 20,544 20,904 22,389 22,616 22,443

62 % 60 % 54 % 60 % 60 % 60 %

4,730,000 4,730,000 4,730,000 4,730,000 4,730,000 6,221,000

9,600,000 9,600,000 9,600,000 9,600,000 9,600,000 9,600,000

2,910,000 2,818,000 2,674,484 2,642,941 3,118,995 2,811,362

10,300,000 10,300,000 10,300,000 10,300,000 10,300,000 10,300,000

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Documents

City of Winona, Minnesota206.230.106.10/weblink/0/edoc/441925/2019...Cole, Thomas Moran, Robert Duncanson, Georgia O’Keeffe and Mary Cassatt. (The MMAM continued to experience visitor