City Council Meeting June 8, 2026 at 7 p.m. 7071 University Avenue NE Agenda Call to Order The Fridley City Council (Council) requests that all attendees silence cell phones during the meeting. A paper copy of the Agenda is at the back of the Council Chambers. A paper copy of the entire Agenda packet is at the podium. The Agenda and all related materials may also be found on the City’s website at https://www.fridleymn.gov/Your- Government/City-Council-Commissions/Agenda-Center Pledge of Allegiance Proclamations/Presentations Proposed Consent Agenda The following items are considered to be routine by the Council and will be approved by one motion. There will be no discussion of these items unless a Councilmember requests, at which time that item may be moved to the Regular Agenda. Meeting Minutes 1. Approve the Minutes from the City Council Meeting of May 26, 2026 2. Receive the Minutes from the City Council Conference Meeting of May 26, 2026 3. Receive the Minutes of the March 10, 2026 Environmental Quality and Energy Commission Meeting 4. Receive the Minutes of the May 20, 2026 Planning Commission Meeting New Business 5. Resolution No. 2026-62, Authorizing an Agreement With the Minnesota Department of Public Safety for the Dedicated Auto Theft Investigator Grant 6. Resolution No. 2026-63, Awarding Street Rehabilitation Project No. ST2026-02 7. Resolution No. 2026-64, Awarding Summit Square Park Improvements Project 8. Resolution No. 2026-65, Authorizing a ReLeaf Grant Agreement with the Minnesota Department of Natural Resources for the Income-Qualified Ash Tree Removal Program 9. Resolution No. 2026-67, Ordering Preparation of Preliminary Report, Plans and Specifications for Street Rehabilitation Project No. ST2027-01 10. Resolution No. 2026-70, Approving Conditional Use Permit, CUP #26-01 to Allow a 125 Foot Telecommunications Tower at 1241 72nd Avenue NE Page 1 of 491 Claims 11. Resolution No. 2026-69, Approving Claims for the Period Ending June 3, 2026 Open Forum The Open Forum allows the public to address the Council on subjects that are not on the Regular Agenda. The Council may take action, reply, or give direction to staff. Please limit your comments to five minutes or less. Regular Agenda The following items are proposed for the Council's consideration. All items will have a presentation from City staff, are discussed, and considered for approval by separate motions. Public Hearings 12. Resolution No. 2026-66, Approving Municipal Consent to the Minnesota Department of Transportation Final Layout for Trunk Highway 65 Improvement Project New Business 13. Resolution No. 2026-68, Approving and Accepting the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending December 31, 2025 Informal Status Reports Adjournment Accessibility Notice: If you need free interpretation or translation assistance, please contact City staff. Upon request, accommodations will be provided to allow individuals with disabilities or those needing interpretation services to participate in City of Fridley services, programs or activities. If you are in need of an interpreter or require auxiliary aids, contact the City at 763-572-3450 at least five business days in advance to ensure arrangements can be made. A solicitud, se darán adaptaciones para permitir que las personas con discapacidades o las que necesiten servicios de interpretación participen en los servicios, programas o actividades de la Ciudad de Fridley. Si necesita un intérprete o requiere ayudas auxiliares, comuníquese con la Ciudad al 763-572-3450 al menos cinco días hábiles de antelación para asegurar que se puedan hacer los arreglos. Markii la codsado, adeegyo caawimaad ah ayaa la siin doonaa dadka naafada ah ama kuwa u baahan adeegga turjumaadda si ay uga qayb qaataan adeegyada, barnaamijyada, ama hawlaha magaalada Fridley. Haddii aad u baahan tahay turjubaan ama qalabka caawiya dadka naafada ah, kala xiriir Magaalada taleefankan 763-572-3450 ugu yaraan shan maalmood oo shaqo kahor, si loo hubiyo in qabanqaabada laguu sameeyo. Raws li kev thov, yuav muaj kev pab tshwj xeeb rau cov neeg xiam oob qhab lossis cov uas xav tau kev pab txhais lus kom lawv tuaj koom tau nrog Nroog Fridley (City of Fridley service) cov kev pab cuam, cov kev kawm, los sis cov dej num sib txawv. Yog koj xav tau neeg txhais lus los sis xav tau lwm yam kev pab, thov hu rau lub Nroog ntawm 763-572-3450 kom tsis pub tsawg tshaj tsib hnub ua hauj lwm ua ntej, xwv kom peb thiaj li npaj tau rau koj raws li lub sij hawm ntawv. Page 2 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Beth Kondrick, Deputy City Clerk Title: Approve the Minutes from the City Council Meeting of May 26, 2026 Background Attached are the minutes from the City Council meeting of May 26, 2026. Financial Impact None. Recommendation Staff recommend the approval of the minutes from the City Council meeting of May 26, 2026. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity x Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. May 26, 2026 City Council Meeting Minutes Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 3 of 491 City Council Meeting May 26, 2026 7:00 PM Fridley City Hall, 7071 University Avenue NE Minutes Call to Order Mayor Ostwald called the City Council Meeting of May 26, 2026, to order at 7:00 p.m. Present Mayor Dave Ostwald Councilmember Patrick Vescio Councilmember Ryan Evanson Councilmember Luke Cardona Councilmember Ann Bolkcom Absent Others Present Walter Wysopal, City Manager Jim Kosluchar, Public Works Director Melissa Moore, Assistant City Manager Mike Maher, Parks and Recreation Director Pledge Of Allegiance Proclamations/Presentations 1. Proclamation Recognizing June 2 as Mississippi River Day. Mayor Ostwald presented the Proclamation recognizing June 2nd as Mississippi River Day. Jim Kosluchar, Public Works Director, recognized the work of Rachel Workin in this area and shared facts about the health of the river. Approval of Proposed Consent Agenda Councilmember Bolkcom requested that Items 5 and 6 be removed from the Consent Agenda for further discussion. Mayor Ostwald noted that those removed items would now become Item 12a and 12b under New Business on the Regular Agenda. Motion made by Councilmember Bolkcom to adopt the proposed Consent Agenda as amended. Seconded by Councilmember Cardona. Page 4 of 491 City Council Meeting 5/26/2026 Minutes Page 2 Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Approval/Receipt of Minutes 2. Approve the Minutes from the City Council Meeting of May 11, 2026. 3. Receive the Minutes from the Joint Public Arts Commission, Parks and Recreation Commission, and City Council Conference Meeting of May 11, 2026. New Business 4. Resolution No 2026-54, Approving the City of Fridley Data Practices Policy. 5. Resolution No. 2026-56, Approving Artwork Recommendations for the Utility Box Art Wrap Pilot Program. Item 12a 6. Resolution No. 2026-57, Acknowledging and Extending Support for a Proposed Utility Box Art Wrap Installation. Item 12b 7. Resolution No. 2026-58, Authorizing a Water Quality Cost Share Agreement with Rice Creek Watershed District for Dog Waste Stations. 8. Resolution No. 2026-59, Approving an Extension for Special Use Permit, SP #25-02 for Al Shifa Clinic Located at 1413 Gardena Avenue N.E. (Ward 2). 9. Resolution No. 2026-61, Approving Gifts, Donations, and Sponsorships Received Between April 23, 2026, and May 19, 2026. 10. Ordinance No. 1438, Amending Chapter 404, Vehicles (Second Reading). Claims 11. Resolution No. 2026-60, Approving Claims for the Period Ending May 20, 2026. Open Forum, Visitors: (Consideration of Items not on Agenda – 15 minutes.) John Brillhart, 830 West Moore Lake Drive, noted the discussion that occurred at the Council Conference meeting related to FLOCK and asked for more information on the City’s FLOCK transparency portal. Mayor Ostwald stated that someone from Public Safety can follow up with the resident to provide that information. Adoption of Regular Agenda Motion made by Councilmember Evanson to adopt the regular agenda as amended. Seconded by Councilmember Vescio. Page 5 of 491 City Council Meeting 5/26/2026 Minutes Page 3 Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. Regular Agenda New Business 12. Resolution No. 2026-55, Authorizing Participation of the City of Fridley in the Minnesota Local Performance Measurement Program. Melissa Moore, Assistant City Manager, explained the purpose and benefit of measuring the performance of City services. She reviewed the results of the general government measures, public safety measures, and public works measures. She highlighted commitments to the future and noted that the full report is available on the City website. Councilmember Cardona stated that the information in the report is very nice to see. Mayor Ostwald thanked staff for their efforts and for putting the report together. Councilmember Bolkcom thanked staff for taking the time to put the report together. Councilmember Evanson recognized the proactive measures of staff that assist in the City trending in the right direction and how these efforts save taxpayer dollars. Councilmember Vescio asked what would be needed to advance to a class two fire safety rating. Ms. Moore stated that she can have the Fire Chief follow up with that information. Motion made by Councilmember Cardona to adopt Resolution #2026-55, Authorizing Participation of the City of Fridley in the Minnesota Local Performance Measurement Program. Seconded by Councilmember Bolkcom. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously. 12a. Resolution No. 2026-56, Approving Artwork Recommendations for the Utility Box Art Wrap Pilot Program. Mike Maher, Parks and Recreation Director, stated that this is the opportunity for the Council to review artwork that has been recommended for the utility box art wrap program by the Public Arts Commission. He provided an overview of the utility box art wrap program and selection process, noting that 54 artwork designs were submitted. He presented the six recommended pieces selected by the Commission, along with two alternatives. Councilmember Bolkcom was amazed by the number and quality of submissions for the program. Councilmember Cardona thanked the Creative Arts Foundation for their contributions to the program. Councilmember Evanson asked what was learned through this process. Mr. Maher commented that there is a great amount of talent in the community, as seen through the submissions received. He provided additional information on things learned about formatting and looked forward to what they would learn through the installation process. Page 6 of 491 City Council Meeting 5/26/2026 Minutes Page 4 Councilmember Vescio thanked the Public Arts Commission for their efforts and looked forward to seeing more color when driving through the community. Commissioner Bolkcom provided information on more options being reviewed by the Commission for rotating art displays. Motion made by Councilmember Bolkcom to adopt Resolution #2026-56, Approving Artwork Recommendations for the Utility Box Art Wrap Pilot Program. Seconded by Councilmember Evanson. 12b. Resolution No. 2026-57, Acknowledging and Extending Support for a Proposed Utility Box Art Wrap Installation. Mr. Maher explained that MnDOT requires a resolution of support from an organization’s governing body for artwork in their right-of-way. He stated that if approved, staff will proceed with an Application for Art of Trunk Highway Right-of-Way. He noted that MnDOT further requires each artist to sign a VARA (Visual Artists Rights Act) waiver, which would allow MnDOT to alter, move, or remove artwork in their right-of-way. Motion made by Councilmember Bolkcom to adopt Resolution #2026-57, Acknowledging and Extending Support for a Proposed Utility Box Art Wrap Installation. Seconded by Councilmember Vescio. Informal Status Reports Councilmember Cardona thanked the American Legion and Sacred Heart National Church for the Memorial Day service held the previous day. He commented on an upcoming neighborhood meeting in a neighborhood park to discuss potential park improvements. The city-wide garage sale takes place June 5th and 6th, and June 7th is trash to treasure day. Councilmember Bolkcom stated that she and Mayor Ostwald attended the Memorial Day service at Islands of Peace, which was also hosted by the American Legion. Councilmember Evanson commented that the City is still looking for adopt-a-park volunteers and encouraged residents to participate. Councilmember Vescio stated that the Community Concert Series begins on June 23rd at the City Hall Campus. Councilmember Cardona stated that Night to Unite parties can now be registered on the City website. Adjourn Motion made by Councilmember Evanson to adjourn. Seconded by Councilmember Vescio. Upon a voice vote, all voting aye, Mayor Ostwald declared the motion carried unanimously, and the meeting adjourned at 7:44 p.m. Respectfully Submitted, Page 7 of 491City Council Meeting 5/26/2026 Minutes Page 5 Melissa Moore Dave Ostwald City Clerk Mayor Page 8 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Beth Kondrick, Deputy City Clerk Title: Receive the Minutes from the City Council Conference Meeting of May 26, 2026 Background Attached are the minutes from the City Council Conference Meeting of May 26, 2026. Financial Impact None. Recommendation Receive the minutes from the City Council Conference Meeting of May 26, 2026. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity x Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. City Council Conference Meeting Minutes of May 26, 2026 Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 9 of 491 City Council Conference Meeting May 26, 2026 5:30 PM Fridley City Hall, 7071 University Avenue NE Minutes Roll Call Present: Mayor Dave Ostwald Councilmember Ann Bolkcom Councilmember Patrick Vescio Councilmember Ryan Evanson Councilmember Luke Cardona Others Present: Wally Wysopal, City Manager Paul Bolin, Community Development Director Tony DeForge, Building Official Kostia Korchak, Building Inspector MaryLou Baier, Licensing and Permit Technician Melissa Moore, Assistant City Manager Anthony Mendoza, Anoka County Sheriff Department Chris Beck, Anoka County Sheriff Department Items for Discussion 1. Update on Building Inspections Activity Tony DeForge, Building Official and the Building Inspections Team presented on the operations of the Buildings Division at the City of Fridley. They talked about commercial versus residential permits. 2. Update on Northstar Commuter Rail Closure Paul Bolin, Community Development Director, provided the City Council with information and an update on the Northstar Rail closure. 3. Anoka County’s Safe County Initiative Update Page 10 of 491 Anthony Mendoza and Chris Beck from the Anoka County Sheriff’s Department provided information on the Drone Assisted Response program being considered by the County. Page 11 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Julie Beberg, Office Coordinator Title: Receive the Minutes of the March 10, 2026 Environmental Quality and Energy Commission Meeting Background Attached are the minutes of the March 10, 2026 Environmental Quality and Energy Commission Meeting. Financial Impact None. Recommendation Receive the Minutes of the March 10, 2026 Environmental Quality and Energy Commission Meeting. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places X Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. March 10, 2026 Environmental Quality and Energy Commission Minutes Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 12 of 491 ENVIRONMENTAL QUALITY & ENERGY COMMISSION MEETING March 10, 2026 7:00 PM Fridley Civic Campus, 7071 University Ave N.E. MINUTES Call to Order Chair Klemz called the Environmental Quality and Energy Commission to order at 7:03 p.m. Roll Call Present: Aaron Klemz Dustin Norman Emma Carter Avonna Starck Justin Foell Absent: Sam Stoxen Mark Hansen Others Present: Rachel Workin, Environmental Planner Approval of Agenda Motion by Commissioner Norman to approve the agenda. Seconded by Commissioner Carter. The motion carried unanimously. Approval of Meeting Minutes 1. Approval of February 10 Environmental Quality and Energy Commission Meeting Minutes Motion by Commissioner Norman to approve the February 10, 2026 meeting minutes with the corrected time and spelling of Commissioner Carter’s name. Seconded by Commissioner Carter. The motion carried unanimously. New Business 2. Active Transportation Plan Review Ms. Workin reviewed the current Active Transportation Plan. Commissioners discussed proposed changes in anticipation of a planned update. 3. Memorandum of Understanding with Xcel Energy for Phase Three of the Partners in Energy Program. Page 13 of 491 Environmental Quality & Energy Commission Minutes Page 2 Meeting 3/10/2026 Ms. Workin shared an overview of the City’s involvement in the Partners in Energy program and discussed a proposed Memorandum of Understanding for Xcel Energy to provide additional planning support in anticipation of the 2050 Comprehensive Plan as well as additional implementation support. Motion by Commissioner Carter to recommend the signing of the MOU. Seconded by Commissioner Norman. The motion carried unanimously. Old Business 4. Streets for All Ms. Workin provided an update on the Streets for All project. 5. Energy Action Plan Updates Ms. Workin said that the Homeowner Open House was successful. 6. Grant Updates Ms. Workin said that the 44th Avenue bridge was now open. 7. Outreach and Event Updates Ms. Workin said that the Seed Swap was successful. Other Items 8. Informal Status Reports Chair Klemz shared a letter to state representatives regarding the Met Council L32 lift station project that residents can sign. Ms. Workin shared that there was a Superfund Citizens Advisory Group meeting on April 23rd at 6:00 p.m. at City Hall. Ms. Workin shared that the Locke Park GAC project will be starting this spring. Adjournment Motion by Commissioner Carter to adjourn the meeting. Seconded by Commissioner Norman. The Motion carried unanimously. The meeting was adjourned at 8:02 p.m. Respectfully submitted, ________________________________________________________ Rachel Workin Environmental Planner Page 14 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Julie Beberg, Office Coordinator Title: Receive the Minutes of the May 20, 2026 Planning Commission Meeting Background Attached are the minutes from the May 20, 2026, Planning Commission meeting. Financial Impact None Recommendation Receive the Minutes of the May 20, 2026 Planning Commission Meeting. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places X Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. PC 05-20-2026 Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 15 of 491 Planning Commission May 20, 2026 7:00 PM Fridley City Hall, 7071 University Avenue NE Minutes Call to Order Chair Hansen called the Planning Commission Meeting to order at 7:00 p.m. Present Pete Borman Aaron Brom Mark Hansen Mike Heuchert Aaron Klemz Ross Meisner Absent Paul Nealy Others Present Nancy Abts, Senior Planner Approval of Meeting Minutes 1. Approve October 15, 2025, Planning Commission Minutes Motion by Commissioner Meisner to approve the minutes. Seconded by Commissioner Klemz. Upon a voice vote, all voting aye, Chair Hansen declared the motion carried unanimously. Public Hearing 2. Conditional Use Permit, CUP #26-01, by AMS Wireless on Behalf of Public Safety Towers Company for a New 125-Foot-Tall Telecommunications Tower at 1241 72nd Avenue NE Motion by Commissioner Klemz to open the public hearing. Seconded by Commissioner Borman. Upon a voice vote, all voting aye, Chair Hansen declared the motion carried unanimously, and the public hearing was opened at 7:03 p.m. Nancy Abts, Senior Planner, presented a request for a Conditional Use Permit (CUP) for a telecommunications tower on the existing property at 1241 72nd Avenue NE. AMS Wireless has filed Page 16 of 491Planning Commission 5/20/2026 Minutes Page 2 the application on behalf of Public Safety Towers, and the property is owned by CTE Properties and used by Crysteel. She provided regulatory context and reviewed previous approvals. She presented details of the application, site description and history, code requirements, and recommended that the Commission hold a public hearing. She stated that staff recommends approval of the request, subject to the stipulations noted in the staff report. Commissioner Brom noted a condition requiring the ability to support two additional wireless facilities and asked for more information. Ms. Abts replied that the intention is to somewhat consolidate the number of wireless facilities throughout the city. She stated that it is not uncommon for towers to support multiple facilities. Commissioner Klemz recognized that this location is outside of the overlay district. He recognized that the applicant states in their narrative that they spoke with nine properties within the district, trying to find an opportunity, and asked if perhaps the overlay district needs to be reconsidered. Ms. Abts replied that this is the first application the City has had in 11 years. She stated that if they continue to receive more applications, it would be a signal that they need to reevaluate the overlay district. Commissioner Borman asked if this site would require a standby generator. Charlie Mischel of AMS Wireless did not believe this site would require a standby generator. Commissioner Borman asked if the applicant anticipates any issues with grounding due to the soil conditions. Mr. Mischel stated that a phase one was completed, and an additional soil and groundwater plan will be completed. Commissioner Meisner referenced the language that the tower “would blend in with the surrounding environment” and asked for more information. Mr. Mischel stated that this is a light industrial area with light poles, and the monopole will look similar. He stated that there are stealth, tree designs, but that would look out of place in this area. Commissioner Borman asked if the only power easement is through the property and not from the road. Mr. Mischel stated that they would run the power underground in a trench from the back of the property. Commissioner Borman asked if a level one structure would be constructed for equipment. Mr. Mischel replied that the equipment would be outdoors. He commented that they would not have a shelter structure because of the small size of the property. Commissioner Heuchert stated that the other examples are from quite a few years ago and asked what led to locating the tower on this property. Mr. Mischel stated that they received a search ring from a carrier that has a dead spot and approaching businesses within the overlay, but that did not work out. He stated that this location is within the quarter-mile search ring from the carrier. Commissioner Meisner asked why barbed wire would not be allowed, acknowledging that the applicant would be worried about the security of the tower. Ms. Abts replied that barbed wire is Page 17 of 491Planning Commission 5/20/2026 Minutes Page 3 allowed in specific locations to protect specific and sensitive things. She stated that more secluded, heavier industrial uses are sometimes allowed barbed wire or electric fencing. Commissioner Meisner asked if there was surveillance on the site. Mr. Mischel replied that Crysteel Trucking has cameras and everything would be locked, with a separate lock on this property as well, which provides two levels of security. Chair Hansen invited public comments. Pam Reynolds, 1241 Norton Avenue NE, commented that this structure would be visible from her back door. She referenced the City Ordinance, which defines the overlay and the intention of the overlay. She commented that this tower will be very close to residential properties and stated that while the City Code specifies a distance of 300 feet from residential properties, the FCC and World Health Organization specify a distance of 1,300 feet from residential properties. She commented on the noise generated from the high power lines, Cummins, Medtronic, and Highway 65. She also spoke about property value impacts and did not believe it was fair that one property, Crysteel, would benefit from this while the other properties would not. She noted a previous request for a tower, in 2005, that was recommended for denial by the Planning Commission because of its proximity to Springbrook, but was then approved by the City Council. She asked if the EQEC had reviewed this request and provided a recommendation on who would monitor the RF frequency, whether the tower would interfere with other capabilities, and whether there would be flashing lights on the tower. She asked the Commission to deny the request. Ms. Abts replied that the application was reviewed by members from all departments, and no concerns were raised about safety impacts from the tower. Mr. Mischel stated that there would not be any flashing lights on the tower, and the proposal would meet all requirements of the FCC and FAA. He shared information about radio frequency levels for common household items, comparing those levels to the level that would be generated from the tower. He stated that the goal would be to allow space for all three major carriers on the tower, and there would be no interference generated from the tower. He stated that this area is a dead spot, which has led to the proposal. He stated that there is a property within the overlay next door to this property, so the residents would still see the tower in that location as well. Commissioner Meisner asked if there would be anything on the site that would generate noise. Mr. Mischel stated that they would not generate noise on this property. He stated that if they had a generator, it would only run if the power were out. He stated that the noise from the equipment would only be heard 20 to 30 feet from the tower, which would still be on the secured site. Commissioner Klemz stated that the EQEC was not made a part of the review, but he is the Chair of that Commission and therefore is still part of the discussion. He asked staff about who received notification for the meeting. Ms. Abts replied that the notification radius is 350 feet from the subject Page 18 of 491Planning Commission 5/20/2026 Minutes Page 4 property, and the City also publishes information about public hearings on its website and in the Star Tribune. Commissioner Meisner referenced the resident’s concern with fire from a tower and asked if that is a concern. Mr. Mischel replied that he has been in this industry for almost 30 years and has not heard anything that was not caused by someone starting a fire in that area. He stated that there are lightning rods on the towers, and inside the cabinet space, there is a mechanism to keep fire self- contained if that were to occur. Nativaidad Seefeld, Park Plaza resident, asked why a tower is being placed next to a manufacturing facility that has environmental issues and works with flammable materials. She asked if studies would be done on that property to ensure that environmental issues are not persisting on that property. She asked if security of the tower would be placed on Crysteel or whether the tower company would have its own security. She asked how this would impact taxpayers. Mr. Mischel replied that there would be no impact on taxpayers. He stated that Crysteel is providing a small area of land, and everything else is controlled and completed by Public Safety Towers. Commissioner Klemz referenced the Telecommunications Act of 1996 and asked if the City Code complies with those regulations and whether there would be any limits on the City’s decision. Ms. Abts stated that the Ordinance was created in response to the 1996 Telecommunications Act. She stated that when the City recodified the Ordinance recently, there were no issues or challenges identified. Ms. Reynolds referenced the 03 overlay district, which includes a list of where things can be. She stated that the municipal garage is a listed location, and perhaps that would be a better choice for the location. Ms. Abts replied that there is a tower at the public works garage site. Commissioner Meisner noted that the location would also be outside of the applicant’s search window. Commissioner Meisner asked for information on decommissioning and/or removal of towers. Mr. Mischel stated that each of the sites are based on a lease, noting that this lease is probably 25 to 30 years. He stated that if the carrier does not want to extend the lease, the site has to be decommissioned and returned to natural conditions. He stated that if the site is decommissioned, everything would be removed. Motion by Commissioner Meisner to close the public hearing. Seconded by Commissioner Borman. Upon a voice vote, all voting aye, Chair Hansen declared the motion carried unanimously, and the public hearing was closed at 7:53 p.m. Commissioner Borman stated that he has no issues with the proposal as presented. Page 19 of 491 Planning Commission 5/20/2026 Minutes Page 5 Commissioner Meisner commented that there are a number of towers in the city already. Commissioner Klemz stated that this would be a good opportunity to review the overlay district in the future to determine if there is additional capability or whether the boundaries would need to be adjusted. He recognized that there are federal laws that preempt local regulations, and given that, he is persuaded that this is an acceptable use as it fits the criteria. He acknowledged the comments from Ms. Reynolds but did not agree on the actual setback requirements or recommendations. He stated that he recommends approval of the request. Chair Hansen stated that he is empathetic to the residents' concerns, but believes that the use makes sense, noting that this is driven by the demand of the public for cell phones. He stated that if this were placed in the overlay district, it would be similarly visible to the resident. Commissioner Klemz noted that the overlay district comes within one-half block of this property. Motion by Commissioner Meisner to recommend approval of Conditional Use Permit, CUP #26-01, with the provided stipulations. Seconded by Commissioner Heuchert. Upon a voice vote, all voting aye, Chair Hansen declared the motion carried unanimously. Chair Hansen noted that this item is scheduled to go before the City Council at the June 8, 2026, meeting. Other Business 3. Elect Vice Chair Ms. Abts stated that a Vice Chair needs to be elected, noting that the Chair has been appointed by the City Council. Chair Hansen asked if Commissioner Meisner would be interested in continuing to serve in the position. Commissioner Meisner stated that he would be willing to continue to serve. Motion by Commissioner Brom to elect Ross Meisner as Vice Chair of the Planning Commission. Seconded by Commissioner Klemz. Upon a voice vote, all voting aye, Chair Hansen declared the motion carried unanimously. Adjournment Motion by Commissioner Borman to adjourn the meeting. Seconded by Commissioner Heuchert. Page 20 of 491 Planning Commission 5/20/2026 Minutes Page 6 Upon a voice vote, all voting aye, Chair Hansen declared the motion carried unanimously and the meeting adjourned at 8:00 p.m. Respectfully submitted, Nancy Abts, Staff Liaison Page 21 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Patrick Faber, Deputy Director Public Safety Title: Resolution No. 2026-62, Authorizing an Agreement With the Minnesota Department of Public Safety for the Dedicated Auto Theft Investigator Grant Background The City of Fridley (City) applied for and was awarded a grant from the Minnesota Bureau of Criminal Apprehension to fund a full-time Dedicated Auto Theft Investigator. The grant is part of the statewide Auto Theft Prevention Program, which helps law enforcement agencies reduce car theft and investigate auto theft cases. The grant covers a three-year period from July 1, 2026 through June 30, 2029. The City will receive funds each year to pay for one investigator who works exclusively on auto theft and auto theft-related cases. This includes salary and benefits, plus funds for training and travel to auto theft conferences. The grant requires no matching funds from the City. All costs will be reimbursed by the state after the City submits invoices showing actual expenses. The investigator must work full-time on auto theft cases only and cannot work on other types of cases. The grant is funded through the automobile theft prevention surcharge collected by the state. Financial Impact The grant provides $309,000 total over three years with no City match required. Annual funding: State Fiscal Year 2027 (July 2026-June 2027): $103,000; State Fiscal Year 2028 (July 2027-June 2028): $103,000; State Fiscal Year 2029 (July 2028-June 2029): $103,000. Each year includes up to $100,000 for investigator salary and fringe benefits, and up to $3,000 for training and travel. The City will be reimbursed for actual costs incurred. Recommendation Staff recommends approving Resolution No. 2026-62, Authorizing an Agreement With the Minnesota Department of Public Safety for the Dedicated Auto Theft Investigator Grant. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity Page 22 of 491 Organizational Excellence Community Identity & Relationship Building x Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-62 2. Fridley Preliminary Grant Contract Agreement Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 23 of 491 Resolution No. 2026-62 Authorizing an Agreement With the Minnesota Department of Public Safety for the Dedicated Auto Theft Investigator Grant Whereas, the Minnesota Bureau of Criminal Apprehension administers the Auto Theft Prevention Program to reduce automobile theft and automobile-related thefts throughout the state; and Whereas, under Minnesota Statute §299A.01, Subdivision 2(4), the State of Minnesota is empowered to enter into grant contract agreements to fund programs that aid in the reduction of automobile thefts and prosecute offenders; and Whereas, the City of Fridley (City) applied for and has been awarded a grant to fund a full- time Dedicated Auto Theft Investigator for the period of July 1, 2026 through June 30, 2029; and Whereas, the grant award totals $309,000 over three years, with $103,000 per year to cover investigator salary (up to $100,000) and training and travel expenses (up to $3,000); and Whereas, the grant requires no matching funds from the City and will reimburse actual costs incurred for a full-time investigator working exclusively on auto theft and auto theft-related cases; and Whereas, accepting this grant will enhance the City's ability to investigate and reduce automobile theft, which benefits public safety and the community. Now, therefore be it resolved, by the City Council of the City of Fridley as follows: 1. That the City Manager is hereby authorized to accept Grant Contract Agreement No. A- ATPP-2027-FRIDLYCI-009 with the Minnesota Department of Public Safety, Bureau of Criminal Apprehension, for the 2027-2029 Auto Theft Prevention Program Dedicated Investigator Grant in the amount of $309,000. 2. That the City Manager is authorized to execute the grant contract agreement and any related documents necessary to implement the grant program. 3. That the Public Safety Director or their designee is authorized to administer the grant, submit required reports, and ensure compliance with all grant terms and conditions. 4. That this Resolution shall take effect immediately upon its passage and approval. Passed and adopted by the City Council of the City of Fridley on this 8th day of June, 2026. Page 24 of 491 __________________________________________ Dave Ostwald - Mayor Attest: ______________________________________________ Melissa Moore – City Clerk Page 25 of 491 Grant Contract Agreement Page 1 of 3 Minnesota Department of Public Safety ("State") Grant Program: 2027-2029 Auto Theft Prevention Program Minnesota Bureau of Criminal Apprehension Dedicated Investigator Grant Provider Org 1430 Maryland Ave E Grant Contract Agreement No.: A-ATPP-2027-FRIDLYCI- St. Paul, Minnesota 55106 009 Grantee: Grant Contract Agreement Term: Fridley, City of Effective Date: 7/1/2026 7071 University Ave Ne Expiration Date: 6/30/2029 Fridley, Minnesota 55432-3111 Grantee's Authorized Representative: Grant Contract Agreement Amount: Fridley, City of Original Agreement Amount $ 309,000.00 Attn: Patrick Faber, Deputy Director 7071 University Ave Ne Fridley, Minnesota 55432 Grant Matching Requirement: Phone: (763) 502-1912 Original Agreement Match Amount $ 0.00 Email: patrick.faber@fridleymn.gov State's Authorized Representative: Federal Funding CFDA/ALN: N/A Minnesota Bureau of Criminal Apprehension Provider Org FAIN: N/A Attn: Chris Huhn, Supervisory Special Agent 1430 Maryland Ave E State Funding: 65B.84 St. Paul, Minnesota 55106 Phone: Special Conditions: N/A Email: chris.huhn@state.mn.us Under Minn. Stat. § 299A.01, Subd 2 (4) the State is empowered to enter into this grant contract agreement. Term:  Per Minn. Stat.§16B.98, Subd. 5, the Grantee must not begin work until this grant contract agreement is fully executed and the State's Authorized Representative has notified the Grantee that work may commence. Per Minn.Stat.§16B.98 Subd. 7, no payments will be made to the Grantee until this grant contract agreement is fully executed. Once this grant contract agreement is fully executed, the Grantee may claim reimbursement for expenditures incurred pursuant to the Payment clause of this grant contract agreement. Reimbursements will only be made for those expenditures made according to the terms of this grant contract agreement. Expiration date is the date shown above or until all obligations have been satisfactorily fulfilled, whichever occurs first. The Grantee, who is not a state employee, will:  Perform and accomplish such purposes and activities as specified herein and in the Grantee's approved 2027-2029 Auto Theft Prevention Program Dedicated Investigator Grant Application ("Application") which is incorporated by reference into this grant contract agreement and on file with the State at 1430 Maryland Ave E, St. Paul, Minnesota, 55106. The Grantee shall also comply with all requirements referenced in the 2027-2029 Auto Theft Prevention Program Dedicated Investigator Grant Guidelines and Application which includes the Terms and Conditions and Grant Program Guidelines (https://mndps.intelligrants.com), which are incorporated by reference into this grant contract agreement. Budget Revisions:  The breakdown of costs of the Grantee's Budget is contained in Exhibit A, which is attached and incorporated into this grant contract agreement. As stated in the Grantee's Application and Grant Program Guidelines, the Grantee will submit a written change request for any substitution of budget items or any deviation and in accordance with the Grant Program Guidelines. Requests must be approved prior to any expenditure by the Grantee. Matching Requirements:  (If applicable.) As stated in the Grantee's Application, the Grantee certifies that the matching requirement will be met by the Grantee. Payment:  As stated in the Grantee's Application and Grant Program Guidance, the State will promptly pay the Grantee after the Grantee presents an invoice for the services actually performed and the State's Authorized Representative accepts the invoiced services and in accordance with the Grant Program Guidelines. Payment will DPS Grant Contract Agreement Non-State (rev. March 2024) Page 26 of 491 Grant Contract Agreement Page 2 of 3 not be made if the Grantee has not satisfied reporting requirements. Certification Regarding Lobbying:  (If applicable.) Grantees receiving federal funds over $100,000.00 must complete and return the Certification Regarding Lobbying form provided by the State to the Grantee. DPS Grant Contract Agreement Non-State (rev. March 2024) Page 27 of 491 Grant Contract Agreement Page 3 of 3 1. ENCUMBRANCE VERIFICATION 3. STATE AGENCY Individual certifies that funds have been encumbered as Signed: required by Minn. Stat. § 16A.15. (with delegated authority) Signed: Title: Date: Date: Grant Contract Agreement No./P.O. No.: A-ATPP-2027-FRIDLYCI-009 / 3000112050 NHTSA Project Number (indicate N/A if not applicable): N/A 2. GRANTEE The Grantee certifies that the appropriate person(s) have executed the grant contract agreement on behalf of the Grantee as required by applicable articles, bylaws, resolutions, or ordinances. Signed: Print Name: Title: Date: Signed: Print Name: Title: Date: Signed: Print Name: Title: Date: DPS Grant Contract Agreement Non-State (rev. March 2024) Page 28 of 491 Grant Contract Agreement Exhibit A Budget Summary SFY27: Dedicated Auto Theft Investigator Wage Budget Category: Salaries Line Item Description State Dedicated Auto Theft Investigator Wage $100,000.00 Category Total $100,000.00 Component Total $100,000.00 SFY27: Dedicated Auto Theft Investigator Training/Travel Budget Category: Travel and Training Line Item Description State Dedicated Auto Theft Investigator T/T $3,000.00 Category Total $3,000.00 Component Total $3,000.00 SFY28: Dedicated Auto Theft Investigator Wage Budget Category: Salaries Line Item Description State Dedicated Auto Theft Investigator Wage $100,000.00 Category Total $100,000.00 Component Total $100,000.00 SFY28: Dedicated Auto Theft Investigator Training/Travel Budget Category: Travel and Training Line Item Description State Dedicated Auto Theft Investigator T/T $3,000.00 Category Total $3,000.00 Component Total $3,000.00 SFY29: Dedicated Auto Theft Investigator Wage Budget Category: Salaries Line Item Description State Dedicated Auto Theft Investigator Wage $100,000.00 Category Total $100,000.00 Component Total $100,000.00 DPS Grant Contract Agreement Non-State (rev. March 2024) Page 29 of 491 Grant Contract Agreement Exhibit A SFY29: Dedicated Auto Theft Investigator Training/Travel Budget Category: Travel and Training Line Item Description State Dedicated Auto Theft Investigator T/T $3,000.00 Category Total $3,000.00 Component Total $3,000.00 Budget Total $309,000.00 DPS Grant Contract Agreement Non-State (rev. March 2024) Page 30 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: James Kosluchar, Public Works Director Brandon Brodhag, Assistant City Engineer Title: Resolution No. 2026-63, Awarding Street Rehabilitation Project No. ST2026- 02 Background On Tuesday, June 2 at 9:30 a.m., bids were publicly opened via the virtual bidding platform QuestCDN and Microsoft Teams for the Street Rehabilitation Project No. ST2026-02 (Project). A total of five responsive bids were received. The Project is approximately 1.27 miles in length and includes pavement improvements across three distinct project locations: Viron Road/Trunk Highway 65 East Service Drive (Ward 2), 63rd Avenue (Ward 2), Skywood Lane, 53rd Avenue, Lincoln Street and 52nd Avenue (Ward 1). Street rehabilitation with the project will include asphalt reclaiming, milling and bituminous asphalt paving. Viron Road/Trunk Highway 65 East Service Drive and 63rd Avenue will be replaced by new bituminous pavement overtop an aggregate base fortified by in-place pavement reclamation. Skywood Lane, 53rd Avenue, Lincoln Street and 52nd Avenue will receive a 1-½ inch mill and overlay of the existing pavement section. The Project has no utility improvements in any of the project areas. Minor improvements to system surface features, including salvage/reinstall or replacement of manhole castings, will be completed as part of the project’s pavement improvements. As noted, five responsive bids were received (Exhibit A). The low bid was received from Park Construction Company of Minneapolis, MN in the amount of $409,562.10. This is approximately 5.9% below the final engineer’s estimate of $435,387.50. The two lowest bids were competitive and within $10,966 of one another. The high bid received was $499,931.51. The City of Fridley (City) has worked with Park Construction Company in the past, most recently as the prime contractor on the 53rd Avenue Trail and Walk Improvements Project No. ST2023- 21, as well as the 2019 Street Rehabilitation Project No. ST2019-01. Park Construction Company is also the awarded contractor for the City’s Street Rehabilitation Project No. ST2026-01 that is going to be constructed this summer. Staff believe they are a knowledgeable and reputable contractor and will deliver the project within the requisite quality specified in the bid documents. Based upon pricing of the lowest responsive bid, special assessments are anticipated to be in Page 31 of 491line of the preliminary estimate previously reported at the Hearing on Improvements for the Project. The attached resolution requests a bid amount of $409,562.10 with a 5% contingency for a total amount of $430,040.21. The contingency would be available for any unforeseen minor exclusions in the plans or additional improvements that may be identified by staff during construction of the project. Property owners within and adjacent to the project area will receive notification of the project advancement in June presuming the City Council awards the project at this meeting. A project information sheet will provide a tentative work schedule, work description and contact information. During the project, staff will distribute weekly project updates via email and the City’s project webpage to minimize disruption to the residents. Staff expect construction to begin in July with substantial completion in October of this year. Financial Impact Funding for this project is derived from several sources including the Street Maintenance Division’s operating budget and special assessments in accordance with City policy. Recommendation Staff recommends the approval of Resolution No. 2026-63, Awarding Street Rehabilitation Project No. ST2026-02. Focus on Fridley Strategic Alignment X Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-63 2. ST2026-02 Bid Tabulation Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 32 of 491 Resolution No. 2026-63 Awarding Street Rehabilitation Project No. ST2026-02 Whereas, the City of Fridley (City) has prepared a Capital Investment Program to systematically reconstruct streets, utilities and other municipal facilities within the City to maintain public infrastructure quality and performance; and Whereas, the Street Rehabilitation Project No. ST2026-02 (Project) is identified as part of the City’s regular street maintenance program and includes the rehabilitation of portions of Viron Road/Trunk Highway 65 East Service Drive, 63rd Avenue, Skywood Lane, 53rd Avenue, Lincoln Street, and 52nd Avenue along with miscellaneous utility improvements and other ancillary items; and Whereas, Resolution No. 2025-139 adopted November 10, 2025 received the Project feasibility report and called for a public hearing on the matter of the construction of certain improvements listed therein; and Whereas, a public hearing regarding said improvements considered under the Project was set for December 8, 2025 and ten days mailing notice and two weeks published notice of the hearing was given; and Whereas, Resolution No. 2025-161 subsequently adopted December 8, 2025 ordered final plans, specifications and calling for bids; and Whereas, on June 2, 2026 electronic bids were received and read aloud, a bid tabulation was prepared and a lowest responsive bidder identified. Now, therefore be it resolved, that the City Council of the City of Fridley hereby receives bids per the attached bid tabulation and awards the Street Rehabilitation Project No. ST2026-02 to the lowest responsive bidder, Park Construction Company of Minneapolis, Minnesota, in the amount of $430,040.21 which includes a 5% contingency. Passed and adopted by the City Council of the City of Fridley this 8th day of June, 2026. _______________________________________ Dave Ostwald – Mayor Attest: Melissa Moore – City Clerk Page 33 of 4912026-02 Street Rehabilitation Project Owner: City of Fridley Bid Opening: 6/2/2026 9:30 AM Engineer's Estimate Park Construction Company GMH Asphalt Corporation Bituminous Roadways Inc. North Valley, Inc. C.S. McCrossan Construction, Inc. Line Item Item Description Unit Quantity Unit Price Extension Unit Price Extension Unit Price Extension Unit Price Extension Unit Price Extension Unit Price Extension 1 MOBILIZATION LS 1$ 35,000.00 $ 35,000.00 $ 35,500.00 $ 35,500.00 $ 12,500.00 $ 12,500.00 $ 21,500.00 $ 21,500.00 $ 24,214.65 $ 24,214.65 $ 24,670.00 $ 24,670.00 2 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) LF 307$ 3.00 $ 921.00 $ 4.95 $ 1,519.65 $ 3.65 $ 1,120.55 $ 2.50 $ 767.50 $ 3.25 $ 997.75 $ 6.70 $ 2,056.90 3 COMMON EXCAVATION (P) (EXCESS RECLAIM) CY 757$ 25.00 $ 18,925.00 $ 22.05 $ 16,691.85 $ 21.10 $ 15,972.70 $ 0.01 $ 7.57 $ 41.09 $ 31,105.13 $ 26.30 $ 19,909.10 4 SUBGRADE PREPARATION (P) RDST 24.87$ 600.00 $ 14,922.00 $ 275.00 $ 6,839.25 $ 395.00 $ 9,823.65 $ 400.00 $ 9,948.00 $ 233.93 $ 5,817.84 $ 683.00 $ 16,986.21 5 FULL DEPTH RECLAMATION (P) SY 7769$ 2.50 $ 19,422.50 $ 1.35 $ 10,488.15 $ 1.85 $ 14,372.65 $ 6.00 $ 46,614.00 $ 3.01 $ 23,384.69 $ 3.50 $ 27,191.50 6 MILL BITUMINOUS SURFACE (1.5" DEPTH) SY 12880$ 1.50 $ 19,320.00 $ 1.65 $ 21,252.00 $ 1.80 $ 23,184.00 $ 2.00 $ 25,760.00 $ 1.85 $ 23,828.00 $ 2.65 $ 34,132.00 7 BITUMINOUS JOINT SAW & SEAL LF 2200$ 3.00 $ 6,600.00 $ 5.15 $ 11,330.00 $ 7.75 $ 17,050.00 $ 5.10 $ 11,220.00 $ 7.96 $ 17,512.00 $ 11.50 $ 25,300.00 8 BITUMINOUS MATERIAL FOR TACK COAT GAL 1243$ 4.00 $ 4,972.00 $ 2.35 $ 2,921.05 $ 3.50 $ 4,350.50 $ 0.01 $ 12.43 $ 4.61 $ 5,730.23 $ 4.20 $ 5,220.60 9 TYPE SP 9.5 WEARING COURSE MIX (3,C) TON 2047$ 95.00 $ 194,465.00 $ 95.25 $ 194,976.75 $ 98.10 $ 200,810.70 $ 96.00 $ 196,512.00 $ 98.61 $ 201,854.67 $ 104.00 $ 212,888.00 10 TYPE SP 12.5 NON WEARING COURSE MIX (3,C) TON 1026$ 90.00 $ 92,340.00 $ 87.65 $ 89,928.90 $ 87.80 $ 90,082.80 $ 93.00 $ 95,418.00 $ 93.22 $ 95,643.72 $ 97.20 $ 99,727.20 11 ADJUST GATE VALVE BOX (WATER) EA 9$ 500.00 $ 4,500.00 $ 477.00 $ 4,293.00 $ 1,061.00 $ 9,549.00 $ 750.00 $ 6,750.00 $ 108.43 $ 975.87 $ 590.00 $ 5,310.00 12 ADJUST EXISTING FRAME AND RING CASTING (SANITARY) EA 8$ 750.00 $ 6,000.00 $ 1,150.00 $ 9,200.00 $ 1,396.00 $ 11,168.00 $ 1,450.00 $ 11,600.00 $ 271.08 $ 2,168.64 $ 1,210.00 $ 9,680.00 13 TRAFFIC CONTROL LS 1$ 10,000.00 $ 10,000.00 $ 3,750.00 $ 3,750.00 $ 3,904.00 $ 3,904.00 $ 7,250.00 $ 7,250.00 $ 8,999.72 $ 8,999.72 $ 5,810.00 $ 5,810.00 14 STABILIZED CONSTRUCTION EXIT EA 4$ 1,500.00 $ 6,000.00 $ 1.00 $ 4.00 $ 600.00 $ 2,400.00 $ 1.00 $ 4.00 $ 108.43 $ 433.72 $ 2,210.00 $ 8,840.00 15 STORM DRAIN INLET PROTECTION EA 10$ 200.00 $ 2,000.00 $ 86.75 $ 867.50 $ 424.00 $ 4,240.00 $ 200.00 $ 2,000.00 $ 200.60 $ 2,006.00 $ 221.00 $ 2,210.00 Bid Total: $ 435,387.50 $ 409,562.10 $ 420,528.55 $ 435,363.50 $ 444,672.63 $ 499,931.51 Page 34 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: James Kosluchar, Public Works Director Brandon Brodhag, Assistant City Engineer Nic Schmidt, Project Manager Title: Resolution No. 2026-64, Awarding Summit Square Park Improvements Project Background On Thursday, June 4, at 9 a.m., bids were publicly opened online via the virtual platform available on QuestCDN and Microsoft Teams for the Summit Square Park Improvements Project. Eight responsive bids were received. This project is part of the City of Fridley’s (City) Park System Improvement Plan (PSIP). Summit Square Park is in the Summit Manor Neighborhood, south of 53rd Avenue, between University Avenue & Main Street (see Exhibit A). The purpose of the project is to provide park improvements that include improved accessibility, playground equipment, and added amenities such as picnic tables and benches. The playground equipment will be installed by specialized contractors and the remaining sitework and installations will be completed by the Summit Square Park Improvements Project contractor. In January of this year, staff applied for an Anoka County administered federal Community Development Block Grant (CDBG). The CDBG was eligible for public facilities due to the proportion of City residents who are considered low to moderate income under the program’s guidelines. In April, the City was awarded by the Anoka County board, funding of $306,000 for the Summit Square Park Improvements Project. This project will be funded by the grant, in addition to other contracts for equipment and other improvements. The award funding is contingent upon completion of the Federal Environmental Review with a 30-day public comment period and an executed funding agreement between the City and Anoka County. As noted, eight responsive bids were received. The low bid was received from Vada Contracting, LLC of Cokato, MN in the amount of $289,456.76, which is 4.5% below the final engineer’s estimate of $303,157 (see Exhibit B). The next lowest bid was within $10,542.24 (3.6%) of Vada Contracting’s bid. Of the eight bids, the high bid received was $368,028.20. Staff believes the amount of bids received and Vada Contracting’s competitive bid is attributed to having availability in their schedule during mid-construction season. Construction of this project is anticipated for this summer with final completion by November. Note all work under the project must meet federal prevailing wage requirements. The City has not contracted with Vada Contracting in the past. Staff have reviewed available Page 35 of 491company information and will seek references from communities who have worked with this contractor recently on similar projects. The resolution requests the bid amount of $289,456.76 with a 5% contingency. The contingency would be available for any unforeseen minor exclusions in the plans, or additional improvements that may be identified by staff during construction of the project. If the City Council approves the attached resolution, staff will notify the contractor of the award and issue a notice to proceed to the contractor upon receipt of acceptable submittals. Financial Impact Funding is provided through the grant received from the Anoka County administered federal Community Development Block Grant Program, and by bond proceeds through the Capital Investment Program. Recommendation Staff recommends the approval of Resolution No. 2026-64, Awarding Summit Square Park Improvements Project. Focus on Fridley Strategic Alignment X Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity X Organizational Excellence X Community Identity & Relationship Building X Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-64 2. Exhibit A 25-713 Project Location 3. Exhibit B 25-713 Bid Tabulation Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 36 of 491 Resolution No. 2026-64 Awarding Summit Square Park Improvements Project Whereas, the City of Fridley (City) began a process of understanding the needs and desires of residents for City parks improvements in 2019 called "Finding Your Fun in Fridley" by conducting public workshops with residents; and Whereas, City residents expressed an interest in improving City parks by upgrading playgrounds and amenities; and Whereas, on April 25, 2022, the City Council adopted Resolution No. 2022-36, which approves the Park System Improvement Plan Final Report and authorizes staff to begin the implementation phase of the Plan; and Whereas, the Park System Improvement Plan provides funding for its implementation and includes site improvements in Summit Square Park; and Whereas, the City has received a Community Development Block Grant of $306,000 for the Project. Now, therefore be it resolved, that the City Council of the City of Fridley hereby receives the bids for the Summit Square Park Improvements Project per the attached bid tabulation and awards the project to the lowest responsive bidder, Vada Contracting, LLC of Cokato, MN in the amount of $303,929.60 which includes a 5% contingency. Passed and adopted by the City Council of the City of Fridley this 8th day of June, 2026. _______________________________________ Dave Ostwald – Mayor Attest: Melissa Moore – City Clerk Page 37 of 491Page 38 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Rachel Workin, Environmental Planner James Kosluchar, Public Works Director Title: Resolution No. 2026-65, Authorizing a ReLeaf Grant Agreement with the Minnesota Department of Natural Resources for the Income-Qualified Ash Tree Removal Program Background The City of Fridley (City) was awarded a ReLeaf Grant from the Minnesota Department of Natural Resources in the amount of $247,869.40 to continue its ongoing response to Emerald Ash Borer (EAB). Grant funds will be used to: • Continue the Income-Qualified Ash Tree Removal and Replacement program that began in 2024 under a 2023 ReLeaf grant. Through this program, the City is able to pay for the removal and replacement of dead ash trees belonging to residents living in priority areas who earn less than 80% of the Area Median Income. It is expected that the grant will allow the City to replace approximately 75 dead ash trees. • Purchase a chemical injection system to allow trained City staff to treat publicly-owned ash trees to protect against EAB. Under the City's approved Emerald Ash Borer Mitigation Plan, the City contracts for the biannual chemical treatment of 364 high- quality ash trees. Purchase of this equipment will allow the City to continue treating trees at a reduced financial cost. Financial Impact There is no financial match required for this project. The 2026 forestry budget will be adjusted to account for associated expenses and revenues, which will enable accelerated progression on our EAB mitigation plans, which will reduce long-term costs to the City. Recommendation Staff recommend the approval of Resolution No. 2026-65, Authorizing a ReLeaf Grant Agreement with the Minnesota DNR for the Income-Qualified Ash Tree Removal Program. Focus on Fridley Strategic Alignment Page 41 of 491 X Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building X Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-65 2. ReLeaf Grant Agreement Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 42 of 491 Resolution No. 2026-65 Authorizing a ReLeaf Grant Agreement with the Minnesota Department of Natural Resources for the Income-Qualified Ash Tree Removal Program Whereas, a large number of ash trees in the City of Fridley (City) are becoming hazardous as a result of Emerald Ash Borer; and Whereas, removing ash trees carries a large financial and ecological cost; and Whereas, the Minnesota Department of Natural Resources made funding available through the ReLeaf grant program to mitigate these costs; and Whereas, the City applied for and was awarded $247,869.40 in funding to remove and replace ash trees on income-qualified properties and to purchase equipment for the chemical injection of public ash trees. Now therefore be it resolved by the City Council of the City of Fridley, Minnesota, that City of Fridley staff are directed to execute the Grant Agreement, and Furthermore, be it resolved by the City Council of the City of Fridley, Minnesota, that upon execution of the grant agreement that City of Fridley staff are authorized to implement this program. Passed and adopted by the City Council of the City of Fridley this 8th day of June, 2026. _______________________________________ Dave Ostwald – Mayor Attest: Melissa Moore – City Clerk Page 43 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 STATE OF MINNESOTA GRANT CONTRACT AGREEMENT Swift Contract Number: 289732 This Grant Contract Agreement is between the State of Minnesota, acting through its Department of Natural Resources, Division of Forestry, 500 Lafayette Road, St. Paul, MN 55155 ("State") and Fridley, City of, 7071 University Avenue, Fridley, MN MN 55432. ("Grantee"). Recitals Under Minnesota Statutes §84.026, §84.085, Subd. 1, §84.705, §88.82, and MN Session Laws - 2025, 1st Special Session, Chapter 1, Article 1, Section 3, Subdivision 4 (g) the State is empowered to enter into this Grant Contract Agreement. The State is in need of enhancing community forest ecosystem health and sustainability. The Grantee represents that it is duly qualified and agrees to perform all services described in this Grant Contract Agreement to the satisfaction of the State. Grant Contract Agreement 1 Term of Grant Contract Agreement 1.1 Effective Date. May 28, 2026, or the date the State obtains all required signatures, whichever is later. Per Minnesota Statutes § 16B.98, Subd. 5, the Grantee must not begin work until this Grant Contract Agreement is fully executed and the State's Authorized Representative has notified the Grantee that work may commence. Per Minnesota Statutes § 16B.98 Subd. 7, no payments will be made to the Grantee until this Grant Contract Agreement is fully executed. 1.2 Expiration Date. A. June 30, 2027, or, in the event this Grant Contract Agreement is continued by way of amendment or new agreement, the date the amendment or new agreement is fully executed, whichever is later. In the event an amendment or new agreement is not fully executed within 60 calendar days of the stated expiration date, this grant agreement will expire on August 30, 2027. 1.3 Survival of Terms. The following clauses survive the expiration or cancellation of this Grant Contract Agreement: Liability; State Audits; Government Data Practices and Intellectual Property; Publicity and Endorsement; Governing Law, Jurisdiction, and Venue; and Data Disclosure. 2 Specifications, Duties, and Scope of Work • The parties will perform the services outlined in Exhibit A: Grant Project Deliverables. • The Grantee will comply with the required grants management policies and procedures set forth through Minn. Stat. §16B.97, subd 4 (a)(1), and M.L. 2025, First Special Session, Chapter 1 GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 1 REV. 7.10.2025 Page 44 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 • The Grantee agrees to complete the program in accordance with the approved budget to the extent practicable and within the program period specified in the grant contract agreement. Any material change in the grant contract agreement shall require an amendment by the State (see Section 9.2). • The grantee shall be responsible for the administration supervision, management, record keeping, and program oversight required for the work performed under this agreement. · The Grantee is responsible for maintaining an adequate conflict of interest policy. Throughout the term of this agreement, the Grantee shall monitor and report any actual, potential, or perceived conflicts of interest to the State's Authorized Representative. The Grantee must sign and return Attachment C, Conflict of Interest Disclosure, when countersigning this agreement. 3 Time The Grantee must comply with all the time requirements described in this Grant Contract Agreement. In the performance of this Grant Contract Agreement, time is of the essence and failure to meet a deadline date may be a basis for a determination by the State’s Authorized Representative that the Grantee has not complied with the terms of the Grant Contract Agreement. The Grantee is required to perform all the duties cited within clause two “Specifications, Duties, and Scope of Work” within the grant period. The State is not obligated to extend the grant period. 4 Consideration and Terms of Payment The consideration for all services performed by the Grantee pursuant to this Grant Contract Agreement shall be paid by the State as follows: 4.1 Compensation. The total obligation of the State under this Grant Contract Agreement, including all compensation and reimbursements, is not to exceed $247,869.40, which shall be paid in accordance with the terms outlined in Exhibit A: Grant Project Deliverables, which is attached and incorporated into this Grant Contract Agreement. 4.2 Administrative Costs. Grantee administrative costs must be necessary and reasonable. 4.3 Travel Expenses. Reimbursement for travel and subsistence expenses actually and necessarily incurred by the Grantee because of this Grant Contract Agreement will not exceed $0.00. The Grantee will not be reimbursed for travel and subsistence expenses incurred outside Minnesota unless it has received the State’s prior written approval for out of state travel. Minnesota will be considered the home state for determining whether travel is out of state. The Grantee will be reimbursed for travel and subsistence expenses in the same manner and in no greater amount than provided in the current Commissioner’s Plan promulgated by the Commissioner of Minnesota Management and Budget. 4.4 Invoices. Payments shall be made by the State after the Grantee’s presentation of invoices for services satisfactorily performed and the written acceptance of such services by the State’s Authorized Representative. Invoices shall be submitted timely, with additional details as requested by the State, and according to the following schedule in Exhibit A: Grant Project Deliverables 4.5 Unexpended Funds. The Grantee must promptly return to the State any unexpended funds that have not been accounted for in a financial report to the State. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 2 REV. 7.10.2025 Page 45 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 5 Conditions of Payment All services provided by the Grantee under this Grant Contract Agreement must be performed to the State’s satisfaction, as determined at the sole discretion of the State’s Authorized Representative and in accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations. The Grantee will not receive payment for work found by the State to be unsatisfactory or performed in violation of federal, state, or local law. 6 Contracting and Bidding Requirements The Grantee is required to comply with Minnesota Statutes § 471.345, Uniform Municipal Contracting Law. 6.1 The Grantee and any subrecipients must comply with prevailing wage rules per Minnesota Statutes §§ 177.41 through 177.50, as applicable. 6.2 The Grantee and any subrecipients must not contract with vendors who are suspended or debarred by the State of Minnesota or the federal government: Suspended and Debarred Vendors, Minnesota Office of State Procurement. 6.3 The Grantee must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. 7 Authorized Representatives 7.1 The State’s Authorized Representative is Rachel Morice MN DNR Forestry, 500 Lafyette Road, St Paul MN 55155, 612-716-2922, rachel.morice@state.mn.us, or their successor, and has the responsibility to monitor the Grantee’s performance and the authority to accept the services provided under this Grant Contract Agreement. If the services are satisfactory, the State’s Authorized Representative will certify acceptance on each invoice submitted for payment. 7.2 The Grantee’s Authorized Representative is Rachel Workin, Environmental Planner rachel.workin@fridleymn.gov, 763-572-3594 or their successor. If the Grantee’s Authorized Representative changes at any time during this Grant Contract Agreement, the Grantee must immediately notify the state. 7.3 The Grantee must clearly post on the Grantee’s website the names of, and contact information for, the Grantee’s leadership and the employee or other person who directly manages and oversees this Grant Contract Agreement on behalf of the Grantee. 8 Assignment, Amendments, Waiver, and Contract Complete 8.1 Assignment. The Grantee may neither assign nor transfer any rights or obligations under this Grant Contract Agreement without the prior consent of the State and a fully executed agreement, executed and approved by the authorized parties or their successors. 8.2 Amendments. Any amendment to this Grant Contract Agreement must be in writing and will not be effective until it has been executed and approved by the same parties who executed and approved the original Grant Contract Agreement or their successors. 8.3 Waiver. If the State fails to enforce any provision of this Grant Contract Agreement, that failure does not waive the provision or its right to enforce it. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 3 REV. 7.10.2025 Page 46 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 8.4 Contract Complete. This Grant Contract Agreement contains all negotiations and agreements between the State and the Grantee. No other understanding regarding this Grant Contract Agreement, whether written or oral, may be used to bind either party. 9 Subcontracting and Subcontract Payment 9.1 A subrecipient is a person or entity that has been awarded a portion of the work authorized by this Grant Contract Agreement by Grantee. The Grantee must document any subaward through a formal legal agreement. The Grantee must provide timely notice to the State of any subrecipient(s) prior to the subrecipient(s) performing work under this Grant Contract Agreement. 9.2 The Grantee must monitor the activities of the subrecipient(s) to ensure the subaward is used for authorized purposes; is in compliance with the terms and conditions of the subaward, Minnesota Statutes § 16B.97, Subd.4 (a) (1) and other relevant statutes and regulations; and that subaward performance goals are achieved. 9.3 During this Grant Contract Agreement, if a subrecipient is determined to be performing unsatisfactorily by the State’s Authorized Representative, the Grantee will receive written notification that the subrecipient can no longer be used for this Grant Contract Agreement. 9.4 No subagreement shall serve to terminate or in any way affect the primary legal responsibility of the Grantee for timely and satisfactory performances of the obligations contemplated by the Grant Contract Agreement. 9.5 The Grantee must pay any subrecipient in accordance with Minnesota Statutes § 16A.1245. 9.6 The Grantee and any subrecipients must not contract with vendors who are suspended or debarred by the State of Minnesota or the federal government. 10 Liability The Grantee must indemnify, save, and hold the State, its agents, and employees harmless from any claims or causes of action, including attorney’s fees incurred by the State, arising from performance of this Grant Contract Agreement by the Grantee or the Grantee’s agents or employees. This clause will not be construed to bar any legal remedies the Grantee may have for the State’s failure to fulfill its obligations under this Grant Contract Agreement. 11 State Audits Under Minnesota Statutes § 16B.98, Subd. 8, the Grantee’s books, records, documents, and accounting procedures and practices relevant to this Grant Contract Agreement are subject to examination by the Commissioner of Administration, the State granting agency, the State Auditor, the Attorney General, and the Legislative Auditor, as appropriate, for a minimum of six years from the expiration or termination of this Grant Contract Agreement, receipt and approval of all final reports, or the required period of time to satisfy all State and program retention requirements, whichever is later. 12 Government Data Practices and Intellectual Property Rights 12.1 Government Data Practices. The Grantee and State must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by the State under this grant contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Grantee under this grant contract. The civil remedies of Minnesota Statutes § 13.08 apply to the release of the data referred to in this clause by either the Grantee or the State. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 4 REV. 7.10.2025 Page 47 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 If the Grantee receives a request to release the data referred to in this Clause, the Grantee must immediately notify the State. The State will give the Grantee instructions concerning the release of the data to the requesting party before the data is released. The Grantee’s response to the request shall comply with applicable law. 12.2 Intellectual Property Rights. A. Intellectual Property Rights. The State owns all rights, title, and interest in all of the intellectual property rights, including copyrights, patents, trade secrets, trademarks, and service marks in the Works and Documents created and paid for under this grant contract agreement. Works means all inventions, improvements, discoveries (whether or not patentable), databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, and disks conceived, reduced to practice, created or originated by the Grantee, its employees, agents, and subcontractors, either individually or jointly with others in the performance of this grant contract agreement. Works includes “Documents.” Documents are the originals of any databases, computer programs, reports, notes, studies, photographs, negatives, designs, drawings, specifications, materials, tapes, disks, or other materials, whether in tangible or electronic forms, prepared by the Grantee, its employees, agents, or subcontractors, in the performance of this grant contract agreement. The Documents will be the exclusive property of the State, and all such Documents must be immediately returned to the State by the Grantee upon completion or cancellation of this grant contract agreement. To the extent possible, those Works eligible for copyright protection under the United States Copyright Act will be deemed to be “works made for hire.” The Grantee assigns all right, title, and interest it may have in the Works and the Documents to the State. The Grantee must, at the request of the State, execute all papers and perform all other acts necessary to transfer or record the State’s ownership interest in the Works and Documents. The federal awarding agency may receive royalty-free, non-exclusive and an irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so as noted in 2 CFR 200.315. B. Obligations. i. Notification. Whenever any invention, improvement, or discovery (whether or not patentable) is made or conceived for the first time or actually or constructively reduced to practice by the Grantee, including its employees and subcontractors, in the performance of this contract, the Grantee will immediately give the State’s Authorized Representative written notice thereof, and must promptly furnish the Authorized Representative with complete information and/or disclosure thereon. ii. Representation. The Grantee must perform all acts, and take all steps necessary to ensure that all intellectual property rights in the Works and Documents are the sole property of the State, and that neither Grantee nor its employees, agents, or subcontractors retain any interest in and to the Works and Documents. The Grantee represents and warrants that the Works and Documents do not and will not infringe upon any intellectual property rights of other persons or entities. Notwithstanding Clause 9, the Grantee will indemnify; defend, to the extent permitted by the Attorney General; and hold harmless the State, at the Grantee’s expense, from any action or claim brought against the State to the extent that it is based on a claim that all or part of the Works or Documents infringe upon the intellectual property rights of others. The Grantee will be responsible for payment of any and all such claims, demands, obligations, liabilities, costs, and damages, including but not limited to, attorney fees. If such a claim or action arises, or in the Grantee’s or the State’s opinion is likely to arise, the Grantee must, at the State’s discretion, either procure for the State the right or license to use the intellectual property rights at issue or replace or modify the allegedly infringing Works or Documents as necessary and appropriate to obviate the infringement claim. This remedy of the State will be in addition to and not exclusive of other remedies provided by law. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 5 REV. 7.10.2025 Page 48 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 13 Workers Compensation The Grantee certifies that it is in compliance with Minnesota Statutes § 176.181, Subd. 2, pertaining to workers’ compensation insurance coverage. The Grantee’s employees and agents will not be considered State employees. Any claims that may arise under the Minnesota Workers’ Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State’s obligation or responsibility. 14 Governing Law, Jurisdiction, Venue Venue for all legal proceedings out of this Grant Contract Agreement, or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. 15 Termination 15.1 Termination by the State. A. Without Cause. The State may terminate this Grant Contract Agreement without cause, upon 30 days’ written notice to the Grantee. Upon termination, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed. B. With Cause. The State may immediately terminate this Grant Contract Agreement if the State finds that there has been a failure to comply with the provisions of this grant contract, that reasonable progress has not been made, or that the purposes for which the funds were granted have not been or will not be fulfilled. The State may take action to protect the interests of the State of Minnesota, including the refusal to disburse additional funds and requiring the return of all or part of the funds already disbursed. 15.2 Termination by the Commissioner of Administration. The Commissioner of Administration may immediately and unilaterally terminate this Grant Contract Agreement if further performance under the agreement would not serve agency purposes or performance under the Grant Contract Agreement is not in the best interest of the State. 15.3 Termination for Insufficient Funding. The State may immediately terminate this Grant Contract Agreement if it does not obtain funding from the Minnesota Legislature, or other funding source; or if funding cannot be continued at a level sufficient to allow for the payment of the services addressed within this Grant Contract Agreement. Termination must be by written notice to the Grantee. The State is not obligated to pay for any services that are provided after notice and effective date of termination. However, the Grantee will be entitled to payment, determined on a pro rata basis, for services satisfactorily performed to the extent that dedicated funds are available. In the event of temporary lack of funding or appropriation, the State may pause its obligations under this Grant Contract Agreement without terminating it. This pause will be for the duration of the lack of funding or appropriation and shall not be considered a termination of the Grant Contract Agreement. The Grantee will be notified in writing of the temporary pause, and the Grantee’s ability to provide services may be temporarily suspended during this period. The State will provide reasonable notice to the Grantee of the lack of funding or appropriation and shall notify the Grantee once funding is restored or appropriated, at which point the provision of services under the Grant Contract Agreement may resume. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 6 REV. 7.10.2025 Page 49 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 The State will not be assessed any penalty if the Grant Contract Agreement is terminated due to insufficient funding. The State must provide the Grantee notice of the lack of funding within a reasonable time of the State’s receiving notice. 16 Publicity and Endorsement 16.1 Publicity. Any publicity pertaining to the services resulting from this Grant Contract Agreement shall identify the State as the sponsoring agency. Publicity includes, but is not limited to: websites, social media platforms, notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Grantee or its employees individually or jointly with others or any subcontractors. All projects primarily funded by state grant appropriations must publicly credit the State, including on the grantee’s website, when practicable. 16.2 Endorsement. The Grantee must not claim that the State endorses its products or services. 16.3 Signage. Any site funded by this grant contract shall display a sign at a prominent location at the entrance to the site and in a form approved by the State that acknowledges funding through this grant. 17 Data Disclosure Under Minnesota Statutes § 270C.65, Subd. 3, and other applicable law, the Grantee consents to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax identification number, already provided to the State, to federal and state tax agencies and state personnel involved in the payment of state obligations. These identification numbers may be used in the enforcement of federal and state tax laws which could result in action requiring the Grantee to file state tax returns and pay delinquent state tax liabilities, if any. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 7 REV. 7.10.2025 Page 50 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 18 Use of Funds as Match to Other Grants or Programs. The Grantee must inform the State’s Authorized Representative whenever the grant funds will be used as match or for reimbursement for any other grant or program. 18.1 The Grantee must inform the State’s Authorized Representative or their grant specialist of the following information: grant program, grant name, the amount of grant or match funds to be used, location where funds were or will be used, activity the funds will support, and current landowner (if applicable). 18.2 The Grantee must also inform the State’s Authorized Representative before work begins if the new grant or program will add any encumbrances to state land where grant or match funds will be spent. 19 Americans With Disabilities Act. The Grantee must comply with the 2010 American Disabilities Act Standards for Accessible Design. 20 Non-Discrimination Requirements. No person in the United States must, on the ground of race, color, national origin, handicap, age, religion, or sex, be excluded from participation in, be denied the benefits of, or be subject to discrimination under, any program or activity receiving Federal financial assistance. Including but not limited to: 20.1 Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.) and DOC implementing regulations published at 15 C.F.R. Part 8 prohibiting discrimination on the grounds of race, color, or national origin under programs or activities receiving Federal financial assistance; Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681 et seq.) prohibiting discrimination on the basis of sex under Federally assisted education programs or activities. 20.2 Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), and DOC implementing regulations published at 15 C.F.R. Part 8b prohibiting discrimination on the basis of handicap under any program or activity receiving or benefiting from Federal assistance. 20.3 The Age Discrimination Act of 1975, as amended (42 U.S.C. § 6101 et seq.), and DOC implementing regulations published at 15 C.F.R. Part 20 prohibiting discrimination on the basis of age in programs or activities receiving Federal financial assistance. 20.4 Title II of the Americans with Disabilities Act (ADA) of 1990 which prohibits discrimination against qualified individuals with disabilities in services, programs, and activities of public entities. 20.5 Any other applicable non-discrimination law(s). 21 Reporting Requirements Provide a progress report to the State’s Authorized Representative in the format explained in Exhibit A with the final invoice. 22 Invasive Species Prevention. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 8 REV. 7.10.2025 Page 51 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Grantees must follow Minnesota DNR’s Operational Order 113, which requires preventing or limiting the introduction, establishment and spread of invasive species during activities on public waters and DNR- administered lands. This applies to all activities performed on all lands under this grant contract agreement and is not limited to lands under DNR control or public waters. Duties are listed under Sections II and III (p. 5-8) of Operational Order 113 which may be found here: Link to Operational Order 113 (http://files.dnr.state.mn.us/assistance/grants/habitat/heritage/oporder_113.pdf) 23 Pollinator Best Management Practices. Habitat restorations and enhancements conducted on DNR lands and prairie restorations on state lands or on any lands using state funds are subject to pollinator best management practices and habitat restoration guidelines pursuant to Minnesota Statutes, section 84.973. Practices and guidelines ensure an appropriate diversity of native species to provide habitat for pollinators through the growing season. Current specific practices and guidelines to be followed for contract and grant work can be found here: Link to Specific Pollinator Best Management Practices for DNR Grants and Contracts (http://files.dnr.state.mn.us/natural_resources/npc/bmp_contract_language.pdf). 24 Monitoring. The state shall be allowed at any time to conduct periodic site visits and inspections to ensure work progress in accordance with this grant agreement, including a final inspection upon program completion. At least one monitoring visit per grant period on all state grants of over $50,000 will be conducted and at least annual monitoring visits on grants of over $250,000. Following closure of the program, the State’s authorized representatives shall be allowed to conduct post- completion inspections of the site to ensure that the site is being properly operated and maintained, and that no conversion of use has occurred. 25 Minnesota Historical Sites Act and Minnesota Field Archaeology Act For projects involving land acquisition and/or construction, the State Historic Preservation Office must review the project to determine if the site is a potential location for historical or archeological findings. If the State Historic Preservation Office determines that a survey is required, the survey would need to be completed, review and approved prior to any site disturbance for development projects and prior to the final reimbursement of the grant funds for acquisition projects. GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 9 REV. 7.10.2025 Page 52 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Exhibits The following Exhibits are attached and incorporated into this Grant Contract Agreement. In the event of a conflict between the terms of this Grant Contract Agreement and its Exhibits, or between Exhibits, the order of precedence is first the Grant Contract Agreement, and then in the following order: Exhibit A: Grant Project Deliverables Exhibit B: 3-Year Tree Establishment Plan Exhibit C: Requirements for DNR Grantees Exhibit D: Conflict of Interest Statement GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 10 REV. 7.10.2025 Page 53 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Grant Contract Agreement Signature Page State Encumbrance Verification State Agency Individual certifies that funds have been encumbered as With delegated authority required by Minnesota Statutes §§ 16A.15 Print Name: Donna Edelman ______________________ Print Name: ___________________________________ Signature: _____________________________________ Signature: _____________________________________ Title: Grants and Contract Specialist Date: ___________ Title: Date: ______________ SWIFT Contract No. 289732 / 3-298513 ____________ Grantee With delegated authority Print Name: Rachel Workin ____________________ Signature: _____________________________________ Title: Environmental Planner Date: _______________ Print Name: Wally Wysopal ____________________ Signature: _____________________________________ Title: Date: _______________ Print Name: ___________________________________ Signature: _____________________________________ Title: Date: _______________ Print Name: ___________________________________ Signature: _____________________________________ Title: Date: _______________ GRANT CONTRACT AGREEMENT TEMPLATE FOR COMPETITIVE GRANTS TO MUNICIPALITIES 11 REV. 7.10.2025 Page 54 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Exhibit A: Grant Project Deliverables 2025 ReLeaf Grants City of Fridley Deliverables Grant Sum Total: $247,869.40 RISK MITIGATION It is recommended that grantee submit for reimbursement during each reporting period, as applicable, instead of waiting until the final report to submit all components at once. If changes occur to grantee’s organization during the grant period such as key personnel or financial status, grantees must notify their UCF grant administrator as soon as possible. Changes to grantee status, and/or information provided through reporting, may result in changes to risk mitigation plan. Accommodations may be revoked or altered throughout the grant period if a grantee has substantial changes related to the grant contract. Grant Contact Deliverables Trees Removed: ____ Trees Planted: _____ Regardless of requests for reimbursement, a written update must be submitted by each reporting deadline, to ensure project is moving forward and on track to completion. Add written reports below corresponding to each reporting date: December 4, 2026 Update: June 30, 2027 FINAL REPORT: As work is completed, thoroughly address all applicable bullet points below. Add in the date of reporting (i.e. 12/1/2026) and change the font color of your update to red, to show where information has been added. Continually add to this document over the lifetime of your grant, making sure that all bullet points are addressed by the time of the grant’s completion. Work with DNR to fully execute and report on the impacts of the work plan by meeting the requirements as negotiated: Priority Consistent with legislative direction, priority for ReLeaf Grant awards was given to projects located in a census block group with a supplemental demographic index score in the 70th percentile or higher within the state of Minnesota and the justification of Priority Area focus methodology. The supplemental demographic index is a combination of five socioeconomic factors averaged together for each Census block group. The supplemental demographic index can provide an additional perspective on potential community vulnerability. The formula is as follows: supplemental demographic index = (% low-income + % persons with disabilities + % less than high school education + % limited English speaking + low life expectancy) / 5. The Priority Area map can be accessed through the DNR website, or by clicking here. Page 55 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Percent project occurs within Priority Area: 100% Project Overview and Need This project proposes to fund the removal and replacement of 75 potentially hazardous (risk of causing damage to people or property) EAB-infested ash trees on income-qualified private properties in the priority area, the planting of an additional 25 trees on income-qualified properties in the priority area, and purchase equipment and supplies to allow City staff to chemically treat high quality public ash trees in the priority area. This project is needed because there is a high volume of poor-quality ash trees in the community and many income-qualified residents do not have the funds to remove them. The City has the ability to abate hazardous trees, but lacking a funding source for this work, the City assesses the cost to the residents' property taxes. This exposes low-income residents to costs that are disproportionately high and results in delays so that trees become very hazardous. This funding would allow the City to pay for the removal of trees on behalf of low-income residents so that removal occurs before the trees become hazardous and without significant financial burden for low-income residents. As part of the grant, all removed trees will be replaced on at least a 1:1 ratio at the removal site with an overall replacement ratio of 1:1.3 to maintain/increase canopy coverage. Staff have seen that unless barriers to replanting are removed, ash trees are often not replaced, leading to decreased and inequitable canopy coverage. The project would also allow the City to buy its own direct injector kit to chemically treat its own ash trees. The City has been paying a contractor to treat high quality ash trees under Phase 1 of its EAB Mitigation plan. The City is moving into Phase 2 of the plan which calls for ceasing treatment and removing these trees. With the purchase of the injector kit, treatment becomes much more economical (versus using a contractor), so the City can continue treating high quality ash trees in the priority area and maintain canopy coverage. The City is ready to take on this project, having overseen similar work during the 2023 ReLeaf grant. The City has more than 50 trees on the waitlist from the previous ReLeaf grant without having done any advertisement of the program since March. Since then, EAB pressure has resulted in a much higher demand for the program. The City also has a forester who can treat the high quality ash trees. This project is scalable, and the City is open to adjusting outcomes to receive partial grant funding. Project Timeline • Summer 2026: Selection of contractor to remove 75 poor quality ash trees • Summer 2026: Selection of contract to replant 100 trees • September 2026: Advertise program to residents via newsletter and direct mailer • Fall-Winter 2026: Removal of 75 ash trees • Winter 2026-2027: Purchase of direct injector kit and training on use • May 2027: Treatment of 50 high quality ash trees by City forester • May 2027: Planting of 100 trees by Contractor • June 2027: Grant reporting The City will provide photos and shape files of removed trees and all planted trees upon request through the project. Page 56 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Project Budget Explanation This project is proposing to remove 75 trees at a cost of $2,500 per tree and replant 100 trees at a cost of $550 per trees. The ratio of removals to replanting is 1:1.3. These costs are based on the amounts paid to contractors under the City's 2023 ReLeaf program for similar work and adjusted for inflation. The City selected using a contractor to plant trees to remove barriers to participation and ensure trees are planted correctly. Additionally, the City is proposing to purchase a pesticide injection system to begin being able to chemically protect high-quality ash trees in house. The cost of the kit is based on the listed price on the Rainbow EcoScience website. The city will also send a postcard about the program to 1,500 eligible households at a cost of $1 per postcard based on estimates from a previous mailing. The City is not requesting reimbursement for staff time in order to be cost effective. All staff time to complete the project will occur using existing staff paid out of the City's operating budget. Community Engagement and Impact This program will be open to income-qualified property owners which will be defined as owned by residents self-certifying incomes of less than 80% of the Area Median Income or rental properties affordable to residents making less than 80% of the Area Median Income as defined by the Met Council. The City will provide a range of tree choices to engage residents and give them autonomy over tree selection. Residents will also be able to choose if they want to keep their stump or have it ground out. During the previous grant, the City found multiple residents preferred to keep their stumps to use for landscaping while others strongly wanted the stump removed. The City will provide access to translation services on printed material in order to include limited English-speaking populations. The City has an on-call translation company for all in person and phone interactions. All request forms for trees will be available both on and offline to be accessible to those who do not use technology. As during the 2023 ReLeaf grant, staff will also bring program applications to residents at their homes and assist them with completion if needed. This engages residents who are distrustful of government or have difficulty completing forms. The City is proposing to use a contractor to plant trees for residents to remove barriers for participation for residents with disabilities. The City has had very positive experience working with income-qualified residents through the 2023 ReLeaf grant which served residents that represented populations with disabilities, limited English language and seniors. The City found success through frequent updates on timelines, direct communication by the residents' preferred method (email/phone/in person), and setting clear expectations for contractors. Communications The City will publicly promote the grant project and purpose including funding support from the DNR. The City will provide messaging about the project specifically as well as EAB and tree replanting more generally. This messaging will include what residents can do on their own property, EAB treatment and proper wood disposal to reduce the spread EAB, the importance of trees and tree diversity diversity, and tree care The City will utilize its print newsletter that is sent to all residences as well as e-newsletter, and social media to reach different audiences. Page 57 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Additionally, the City will also mail a postcard on the program to residents in the priority area to reach people who are not engaged with the City. The City will host an in-person tree planting and tree care workshop. The workshop will discuss EAB, tree diversity and tree selection, tree planting, tree care, etc. The City will provide all residential participants a video link on tree planting as well as an electronic copy (paper upon request) of the Forest Service's Tree Owner manual. All participants will sign a formal agreement with required grant language. All residents have the opportunity to receive no-cost tree inspections from the City forester. This service will be directly promoted to all participants. Key Personnel Internal staff for this project include: Rachel Workin, Environmental Planner. Rachel will administer the grant including contractor selection, participant selection, and grant reporting. She has worked with the City for eight years, during which time she has successfully completed three DNR forestry grants, managed the City's tree sale, and overseen the City's EAB treatment program among other forestry initiatives. Rachel is currently administering the City's 2023 ReLEAF and 2023-2027 Shade Tree Bonding grants which are wrapping up and on track for successful completion. As part of the ReLEAF grant, Rachel has gained valuable experience overseeing residential tree planting. Rachel has created or collaborated on multiple other residential financial assistance programs including the City's insulation rebate and water efficiency rebate programs. Rachel has a Master's of Environmental Management from Duke University and previously led community forestry projects as a US Peace Corps Volunteer. Kyle Maitland, Forester. Kyle performs day-to-day forestry operations for the City and will oversee technical aspects of the project including treatment of high quality ash trees and the tree care workshop. Kyle is a Certified Tree Inspector and is a graduate of the APWA Public Works Leadership Academy. Jeff Jensen, Assistant Public Works Director. Jeff will supervise the project and City staff. Jeff has over twenty years of experience with the City during which he served as the Forester for a number of years. Jeff oversees the City's $15,000,000+ Streets and Parks funds. External staff include: Tree removal contractor: These contractors will be required to have a City license which includes liability insurance minimums and participation in the Tree Care Registry, have an ISA-certified arborist on staff, and sign a contract indicating that they will provide all necessary documentation for grant reporting including itemized invoices. Tree planting contractor. This contractor will have liabilty insurance and have a MNDOT Certified Landscape Specialist, International Society of Arboriculture (ISA) Certified Arborist on staff, or Tree Care Industry Association (TCIA) accreditation, or equivalent certification. Page 58 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Grant Requirements All components and requirements within the Request for Application must be adhered to. TREE REMOVALS AND PLANTING • Planting trees can take place without removal. • Tree removals from boulevards and parks, must be replaced at least one-for-one (i.e., at least one tree planted for every tree removed), and trees must be replanted at the same location of the removal whenever possible and feasible. • Tree removals conducted in park woodlands: o For the purposes of this grant, park woodlands are defined as publicly owned spaces that, beyond trail creation or access, are not regularly mowed. o Removals in woodlands need to be mitigating a public safety concern or to address degraded ecosystems. o Removals must meet a minimum of one tree planted for five trees removed. • Tree planting projects must follow the best practices set in A Pocket Guide to Planting Trees. • Tree planting projects must identify the tree species to be planted; site location(s); and number, and type/size of planting stock: o Trees planted must be a climate-adapted species to Minnesota. o The species identified for planting must increase the diversity of the community’s tree canopy and advance the goal of working toward the 20-10- 5 guidelines, meaning a community has no more than 20% of their trees within a single family, no more than 10% of their trees within a single genus, and no more than 5% of their trees within a single species. Numbers derived from the Minnesota Department of Natural Resources 2020 Rapid Assessment will be used unless an updated inventory is provided. For your community this means grant funds cannot be spent on purchasing: • Acer (maple): 22% • Picea (spruce): 15% • Fraxinus (ash): 11% o Tree species listed on the Minnesota Invasive Terrestrial Plants list are not eligible for grant expenses, including Amur cork tree, Amur maple, autumn olive, black locust, buckthorn, Norway maple, Russian olive, Siberian elm, and tree of heaven. o Species list for trees to be planted must be submitted to and approved by DNR prior to planting. o Species list and numbers can be amended following the submission of tree inventory/survey data. o Tree stock must meet ANSI Z-60.1 and can be: • ¾-2 inch caliper bareroot, • a container class size #20 or smaller, or • balled and burlapped trees smaller than 2.5” caliper (MNDOT Certified Landscape Specialist training required by planting organization in order for B&B trees to be eligible). • Flexibility is possible in instances where desired stock in Page 59 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 unavailable. • DNR recommends trees be purchased with a one-year warranty. • All trees removed and planted on public property must be mapped and submitted as shapefiles, with the planted trees identified by species. If your community does not have access to shapefile-generating software, please contact the DNR at ucf.dnr@state.mn.us to discuss options for addressing this requirement. • Projects that incorporate tree planting must submit a 3-year establishment plan with application. RESIDENTIAL TREE CARE • Work conducted on residential property must be completed by residents (tree planting only), or by tree care companies holding liability insurance and with a MNDOT Certified Landscape Specialist, International Society of Arboriculture (ISA) Certified Arborist on staff, or Tree Care Industry Association (TCIA) accreditation, or equivalent certification. • A link to, or paper copy of, the Forest Service’s Tree Owner’s Manual (English / Spanish) must be provided to residents receiving a newly planted tree. • For activities on residential land, a formal agreement between the resident and the Community Tree Planting Grant recipient is required. Each residential agreement must contain the following language: o The State of Minnesota is released from any liability associated with work completed on private property. o Access is granted by the landowner for all planned activities within agreement; this may include, but is not limited to, planting, follow-up maintenance, monitoring, or other on-site work. o I will plant and care for my tree according to the Tree Owner’s Manual for as long as it is within my right to do so. Requesting Reimbursement and Reporting Accomplishment reports must be submitted by the following deadlines: Update -December 4 2026 Update; Final Report - June 30, 2027. If two successive updates are missed, DNR staff will contact grantee requesting a grant progress update and explanation of why grant reporting has been late. If a report is not received within 60 days of the request, DNR will assume work is not being conducted and begin steps to close-out the grant contract and reallocate funds. This may result in a grant agreement being closed out early, and DNR staff noting in the grant closeout report the lack of performance and contract compliance by the grantee. If within two successive updates necessary progress has not been made in accomplishing work within the grant contract, DNR staff may request a meeting to discuss why progress is not being made and may begin steps to close-out the grant contract and reallocate funds. This may result in a grant agreement being closed out early, and DNR staff noting in the grant closeout report the lack of performance and contract compliance by the grantee. The following documentation is required to obtain reimbursement unless specifically described. • Partial payment form along with invoices and proof of payment for grant-funded purchases, Page 60 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 • Cash Match form along with proof of payment (as applicable), and • In-Kind Match form (as applicable) • Accomplishment reports will include grant contract deliverables and their impacts • Photo documentation of the project’s progress at appropriate phases, and illustrations, diagrams, charts, graphs, and maps to show results • All trees removed, stumps ground (if not connected to a removed tree), and planted will be mapped and submitted as shapefiles, with the planted trees identified by species and size, to obtain grand fund reimbursement. If your community does not have access to shapefile- generating software, please notify your DNR Urban and Community Forestry Team Member, and they will work to assist you. Maps must: o Identify the location of trees that have been removed o Identify the location of stumps that have been ground o Identify the location and species of trees that have been planted All complete reimbursement requests received by the deadlines will be reviewed by DNR staff. Provided that the grantee is in compliance with all terms of the Request for Application and grant contracts, verified project activities and eligible expenses will be reimbursed up to 90%, with 10% retained until the project is completed. Accommodations may be offered in select circumstances, and in accordance with Office of Grants Management policies, at the discretion of the agency. Please reach out to DNR staff at ucf.dnr@state.mn.us for more information on requesting accommodations. Following the submission of invoices and accomplishment reports, a compliance check will be conducted by Minnesota Department of Natural Resources staff. Staff will do a site evaluation ensuring that grant work has been properly completed including tree removals are accurately reported on and stump grinding was complete if applicable, tree species submitted on maps are correctly identified and planted in accordance with the standards set in the Minnesota Department of Natural Resources Pocket Guide to Planting Trees, trees treated are properly tagged and identified, etc. Ineligible Project Expenses Ineligible project expenses include, but are not limited to: • Costs incurred prior to the start date of the fully executed grant agreement. • Purchase of trees listed on the Minnesota Noxious Weed List, or the DNR’s Invasive Terrestrial Plants List, including Amur cork tree, Amur maple, autumn olive, black locust, buckthorn, Norway maple, Russian olive, Siberian elm, and tree of heaven. • Purchase of balled and burlapped trees larger than 2.5” caliper, containerized trees larger than #20, or bareroot trees greater than 2” caliper diameter. • Purchase of tree species in a genus that already makes up 10% or more of the community’s trees or in a family that makes up 20% or more of the trees. • Purchase of plants other than trees, such as shrubs, living ground covers, sod, grass seed, and flowers. • Purchase of land or easements. • Major soil purchases, grade changes or construction. • Capital expenditures (items with a unit cost of $5,000 or more), such as buildings, Page 61 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 motor vehicles, trails, or other permanent structures. • Experimental practices not approved by DNR. Questions about additional eligible or ineligible expenses can be directed to ucf.dnr@state.mn.us. Grant Performance Grant performance will be reviewed on timeliness, budget management, reporting and documentation, meeting outcomes and deliverables, responsiveness and communication, and acknowledgement and reflection on grant performance. This information may be considered during future grant application and award processes. Acknowledgments Minnesota Department of Natural Resources The Minnesota Department of Natural Resources needs to be acknowledged in publications, audiovisuals, and electronic media developed as a result of this award. • Including any publications or outreach materials related to this grant or agreement, a statement of affiliation with Minnesota Department of Natural Resources, e.g., “This publication made possible through a grant from the Minnesota Department of Natural Resources.” OR “This project was conducted in cooperation with the Minnesota Department of Natural Resources.” • Logo is permitted for use and can be obtained by contacting the UCF Team. Page 62 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065Exhibit B. Tree Maintenance Plan 2025 ReLeaf City of Fridley 3-Year Tree Establishment Plan Template for Newly Planted Trees Organization/LUG: City of Fridley Year and Season of Planting: Spring 2027 Project Coordinator: Rachel Workin Phone: 763-572-3594 Email: rachel.workin@fridleymn.gov # of Trees to be Planted: 105 Size (caliper for deciduous, height for conifers): 10 gallon container Type of Stock to be Planted (Bare root, etc.): 10 gallon container Describe how the activities below will be completed. 1. Tree Establishment Personnel a. Describe who is responsible for maintaining new trees to ensure establishment. Property owners will be responsible for maintaining trees on private property with assistance from the City. b. Volunteers, homeowners, or inexperienced staff that will provide maintenance should receive basic training and literature on proper maintenance techniques. Is training needed and how will you do it? Yes, training of homeowners will be needed. The City will provide all participants the Forest Service's "Tree Owner's Manual" as well as summarized directions. The City will send reminders in March and July each year on maintenance during the first three full growing seasons. c. How will you inspect tree maintenance work periodically to make sure it is being done correctly? The City will host an in-person training on proper tree maintenance and directly inviteThe City all participants.forester will be available to inspect any tree planted on private property and answer any questions on tree health. The City will check in with residents in March and July during the first three years to provide maintenance reminders and let them know to call the forester with any concerns about their tree. 2. Tree Watering Process Describe in detail how trees will be watered, the time period and frequency of watering. Trees should be watered weekly for the first 3 to 5 years when the ground is thawed unless it has rained 1 inch in a week. Trees on private property will be watered by residents. Residents will receive direction on how often to water at the time of planting as well as March/July reminders during the first three full growing seasons. Directions will be based on the U of M Extension's Watering Guide: • 1 week after planting, water daily. • 2-12 weeks after planting, water every 3 days. • After 12 weeks, water weekly until the ground freezes. • Resume weekly watering in the spring until the ground freezes for the first three growing seasons. Watering can be skipped if there is substantial rain. Page 63 of 491 The City will describe tree watering during the in-person training. All trees will be equipped with a watering bag to facilitate watering. This will be installed by a contractor at the time of planting.Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 3. Mulching Trees Will you mulch your trees and if so, how will you maintain mulch? Trees planted by a contractor will be mulched initially. Directions for ongoing mulching are outlined the US Forest Service's Tree Owner's Manual which will be provided to all participants. The City will include reminders about mulch in its March/July check-in to participants. The City will describe mulching during the in-person training. 4. Staking and Tying Trees Explain if staking is necessary due to mowing, vandalism, or wind conditions, and describe plans for inspection and removal. Directions for staking are outlined the US Forest Service's Tree Owner's Manual which will be provided to all participants. The City forester will discuss proper staking technique during the in-person training for participants and be available for free site visits to discuss staking with participants. 5. Checking Tree Health The grantee will check trees every 6 – 12 months to identify and address problems. Describe inspection process and follow-up. City staff will check in with residential participants in March/July to provide maintenance reminders, offer a free tree check, and check in on tree health. 6. Tree Protection Young trees in busy urban areas may be easily damaged by human activity, animals, and equipment. Describe how planted trees will be protected. All trees planted by a contractor will have a tree guard unless the tree's structure is not conducive to it. The City will include reminders to remove the tree guard when the tree is a sufficient size during the biannual check-in. 7. Pruning Newly planted trees should need little pruning, if they were properly cared for in the nursery. In the first year after planting, remove only dead or broken branches. In later years, weakly attached limbs can be removed, and corrective pruning can be done if needed. Describe your pruning maintenance cycle. Directions for staking are outlined the US Forest Service's Tree Owner's Manual which will be provided to all participants. The City will include reminders about pruning in its March/July check-in to participants. The City forester will discuss proper staking technique during the in-person training for participants and be available for free site visits to discuss pruning with participants. 8. Tree Warranty Tree planting should include a warranty from the nursery for replacement (due to poor condition or mortality). The grantee should be prepared to fully replace all trees that are in poor condition or die prior to inspection at the end of the project grant agreement, unless loss was due to natural disaster. Describe your tree warranty or how trees will be replaced. Trees planted by contractors will include a one year warranty for poor condition. Residents will agree to replace any tree that dies prior to the grant agreement as part of their project agreement. Page 64 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Exhibit C: Requirements for DNR Grantees Requirements for DNR grantees Effective date: January 31, 2026 The following policies apply to all DNR grants, except where specifically noted. These requirements are in addition to requirements in program-specific manuals. In case of any conflicts with an existing grant program manual, the stricter document will control. Questions about these requirements should be directed to the grant specialist for your grant program. Questions may also be directed to grantsteam.dnr@state.mn.us. When sending an email to this address, please include information on your grant funding source, program, and question. Admin’s Office of Grants Management policies Under Minn. Statutes, section 16b.97 subd. 2, the Minnesota Department of Administration is required to create general grants management policies and procedures applicable to all state agencies. Admin’s OGM implemented grant policies for the State of Minnesota. Please review OGM grant policies (select the Current Policies tab). Information especially relevant to grantees is summarized below. Unless otherwise noted, these policies do not apply to bonding grants and grants under Minn. Statutes section 16A.86 or section 16A.642. Grants conflict of interest (OGM Policy 08-01) All grantees must sign a conflict-of-interest disclosure form or certify they will disclose conflicts of interest when signing their grant agreements/grant award notifications. Grantees must also maintain a written standard of conduct covering conflicts of interest and governing the actions of their employees or board members engaged in the selection, award, and administration of contracts. State staff may request this written standard when conducting grant monitoring activities or if otherwise relevant. These requirements apply to all grants, including bonding grants and grants under Minn. Statutes section 16A.86 and section 16A.642. OGM Policy 08-01 states that a conflict of interest occurs “when a person has actual or apparent duty or loyalty to more than one organization and the competing duties or loyalties may result in actions which are adverse to one or both parties. A conflict of interest exists even if no unethical, improper, or illegal act results from it.” Per the OGM policy, there are several types of conflicts of interest: Actual conflict of interest An actual conflict of interest occurs when a person’s decision or action would compromise a duty to a party without taking immediate appropriate action to eliminate the conflict. Requirements for DNR Grantees 1 Page 65 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Potential conflict of interest A potential conflict of interest may exist if a person has a relationship, affiliation, or other interest that could create an inappropriate influence if the person is called on to make a decision or recommendation that would affect one or more of those relationships, affiliations, or interest. Individual conflict of interest A conflict of interest that may benefit an individual employee or a grant reviewer is any situation in which their judgement, actions, or non-action could be interpreted to be influenced by something that would benefit them directly or through indirect gain to an immediate family member, business, or organization with which they are involved. Organizational conflict of interest A conflict of interest can also occur with an organization that is a grant applicant in a competitive grant process or grantee of a state agency. Organizational conflicts of interest occur when: • A grantee’s objectivity in carrying out the grant is impaired or compromised due to competing duties or loyalties • A grantee, potential grantee, or grant applicant has an unfair competitive advantage through being furnished unauthorized proprietary information or source selection information that is not available to all competitors Use of grant contract agreements and grant award notifications (OGM Policy 08-04) All grants need a written grant contract agreement or grant award notification. State agencies cannot award a grant to a grantee that is on either the suspension or debarment lists for the state of Minnesota or the federal government. If a grantee becomes suspended or debarred, that may be cause for the State to cancel their grant. Grant agreements/GANs must contain a provision for the grantee to clearly post on the grantee’s website the names and contact information for the grantee organization’s leadership and the person(s) who directly manages and oversees the grant. A fully executed copy of the grant agreement or GAN and all relevant records must be kept on file for a minimum of six years from the end date, receipt, and approval of all final reports, OR the period of time required to satisfy all state and program retention requirements, whichever is later. Grantees must complete work in accordance with the terms and conditions of their grant agreement/GAN. Work not covered under the grant agreement/GAN will not be reimbursed without a prior amendment request. Requirements for DNR Grantees 2 Page 66 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 Public questions and comments concerning fraud and waste in state grants (OGM Policy 08-05) OGM will serve as the central point of contact for questions and comments about fraud and waste in state grants and about the violation of statewide grants policies. OGM will also respond to other public questions and concerns about state grants. Grant payments (OGM Policy 08-08) State agencies may not issue grant payments until the funds are encumbered, and the grant agreement is fully executed, or the GAN is completed. Reimbursement is the State’s preferred method for making grant payments. DNR grants operate on a reimbursement basis, unless the grant agreement/GAN contains explicit language specifying otherwise. Grantee reimbursement requests must correspond to the line items in the approved grant budget. Grant managers must review each reimbursement request against the approved grant budget, grant expenditures to date, and the latest grant progress report before approving payment. If grant managers see a discrepancy or have any questions about reimbursement requests and/or related documentation, they will follow up with the grantee. Any deviation from this policy must be approved by the agency wide grants manager prior to signing a grant agreement/GAN and must be in accordance with state laws and OGM policies. Grants in which the payment terms are defined in statute are not covered by this policy. DNR reimbursement procedures • Grantees must pay for project expenses before seeking reimbursement from the grant and should only request reimbursement for paid expenses. Expenses are reviewed and those deemed eligible are then reimbursed under the terms of the agreement/GAN with the State of Minnesota. • Grantees are not allowed to request reimbursement for invoices from a vendor that have not yet been paid by the grantee. Please also see the Proof of Payment section below. • Grantees can expect to be reimbursed within 30 days of the DNR receiving a complete and accurate reimbursement request. If documentation to process the request is missing, or the request has discrepancies or incorrect information, the 30-day clock does not start until all necessary information has been submitted to the DNR and the request has been deemed complete and whole. • The DNR will pay final reimbursement when the state determines that the grantee has satisfactorily fulfilled all the terms of their grant agreement/GAN, unless a grant term is altered or excluded by the DNR in writing. Grantees should keep the following documentation on file for monitoring and audit purposes: • Proof of payment of grant expenses (e.g. copies of cancelled checks, electronic bank statements, etc.) • Contracting/purchasing bidding documentation • Organization’s conflict of interest policy Requirements for DNR Grantees 3 Page 67 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 • Prevailing wage documentation (if applicable): project assessment form, certified payroll reports, etc. Grant progress reports (OGM Policy 08-09) Grantees are required to submit written progress reports at least annually until all grant funds have been expended and all the terms in the grant agreement/GAN have been met. Information requested in a grant progress report may include (but is not limited to): goals and objectives, activities, outcomes, challenges, lessons learned, and financial information. State agencies cannot make grant payments on grants with past due progress reports (unless the agency has given the grantee a written extension). Grant monitoring (OGM Policy 08-10) All state grants over $50,000 are required to have at least one monitoring visit before final payment is made. All state grants over $250,000 are required to have annual monitoring visits. In-person visits are preferred where possible, but telephone or virtual visits are also used where reasonable. The purpose of a monitoring visit is to review and ensure progress towards the grant’s goals, address any problems or issues before the end of the grant period, and build a relationship between the agency and grantee. For state grants over $50,000, state agencies must conduct a financial reconciliation of grantees’ expenditures at least once before final payment is made. A financial reconciliation involves reconciling a grantee’s request for payment for a given period with supporting documentation (e.g. purchase orders, receipts, payroll records, etc.) for that request. If previously reimbursed costs are found to be ineligible upon further review during monitoring (or at any other point during the grant period), repayment of those costs or other corrective action may be required. Proof of payment The State requires proof of payment documentation to ensure that funds are being provided on a reimbursement basis. The grantee must maintain proof of payment documentation and make it available when requested by the State. Proof of payment documentation may include: • A copy of a bank statement with photocopies of cleared checks • An electronic bank statement • A copy of cancelled checks or other certified financial records • Employee original time records and payroll documentation Cost share/required match For grants which require cost share or match, the requirements for documenting work completed or expenses incurred as match are the same as for expenses for which grantees are requesting reimbursement. The State may disallow otherwise-eligible costs for reimbursement if the grantee cannot provide proof of the expenses being used as match. Requirements for DNR Grantees 4 Page 68 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 For grants with in-kind match (i.e. non-cash donations of a good or service), grantees should provide documentation similar to a payment request. If the in-kind match is volunteer time, grantees will need volunteer logs and to show the calculation used to convert volunteer hours to time. If the in-kind match is something other than volunteer time (e.g. use of equipment, or donated materials), grantees must perform due diligence to determine how much the in-kind match would cost. For example, if the in-kind match is a land donation, the documentation should include an appraisal. If the in-kind match is use of equipment, the documentation should demonstrate a realistic cost for the type of equipment and amount of time. Legislatively mandated grants (OGM Policy 08-11) State agencies must manage legislatively mandated grants with the same level of oversight (including monitoring) applied to other state grants, while respecting and maintaining the legislative intent. Grantees for legislatively mandated grants must submit a work plan and budget. The grant agreement/GAN must be based on the legislation, the grantee’s work plan and budget, and negotiations between the state agency and the grantee. Grant amendments (OGM Policy 08-12) During the grant period, it may be necessary to make changes to the grant contract agreement/GAN. Generally, these modifications could include changes to the grant timeframe, to the scope of work, or to the budget categories. A formal grant contract amendment is required for any changes. Should a situation arise that requires any changes to the project, it is the grantee’s responsibility to communicate immediately with the DNR grants specialist. The purpose of grant amendments must be similar to the original purpose of the grant and the grantee duties should be within the scope of the original RFP/notice of grant opportunity/application. If an amendment is allowed, it must be fully executed before additional costs can be incurred. Contracting and bidding Competitive bidding needs to follow a fair and transparent public process. Grantees must not contract with vendors or subcontractors who are on the suspension or debarment lists for either the State of Minnesota or the federal government. Grantees must take all necessary affirmative steps to assure that targeted vendors from businesses with active certifications through the entities below are used when possible: • Minnesota Department of Administration’s Certified Target Group, Economically Disadvantaged, and Veteran-Owned Vendor List Requirements for DNR Grantees 5 Page 69 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 • Metropolitan Council’s Targeted Vendor list: Minnesota Unified Certification Program • Small Business Certification Program through Hennepin County, Ramsey County, and the City of St. Paul: Central Certification Program Grantees must maintain support documentation of the purchasing and/or bidding process utilized to contract services in their financial records, including support documentation justifying a single/sole source bid, if applicable. Grantees must retain the following documentation in the project file: • Copies of executed subcontract agreements • A copy of the request for proposal/request for quote, all submitted bids, and the bid tabulation (if applicable) • Written documentation that describes the rationale for selection of each subcontractor • Documentation of the contract/bid approval, if required by grantee internal controls (such as meeting minutes) This documentation may be reviewed during monitoring visits or when requested by the state. Contracting and bidding for political subdivisions of the state In addition to the general contracting and bidding requirements above, municipalities (defined in Minn. Statutes, chapter 471.345 subd. 1 as a county, town, city, school district, or other municipal corporation or political subdivision of the state authorized by law to enter into contracts) must also follow the Uniform Municipal Contracting Law. Contracting and bidding for non-governmental organizations In addition to the general contracting and bidding requirements at the beginning of this section, non- government organizations must follow the contracting policies/procedures below. Contracting and bidding for Tribal governments Tribal governments are subject to neither the Uniform Municipal Contracting Law nor the DNR contracting policies/procedures below. Tribal governments are subject to the contracting and bidding procedures of their own governance. Contracting and bidding thresholds and process • Services and/or materials that are expected to cost between $10,000 and $24,999 must be competitively awarded, based on a minimum of two verbal quotes or bids or awarded to a targeted vendor. • Services and/or materials that are expected to cost between $25,000 and $99,999 must be competitively awarded based on a minimum of three verbal quotes or bids. • Any services or materials that are expected to cost $100,000 or more must undergo a formal notice and bidding process. • Grantees must use an RFP/RFQ process to competitively select professional and technical services. Requirements for DNR Grantees 6 Page 70 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 • The advertisement for bid processes must allow for fair competition among potential qualified bidders. Prevailing wage Prevailing wage (Minn. Statutes, sections 177.41-177.45) is the minimum hourly wage employers must pay certain workers who work on construction and public works projects funded by state dollars. Prevailing wage includes the employer’s cost of benefits. Other prevailing wage information can be found at the Minnesota Department of Labor and Industry. Prevailing wage rules apply to any grant award of $25,000 or more that qualifies as a “project” per the following definition: Project: demolition, erection, construction, alteration, improvement, restoration, remodeling, or repairing of a public building, structure, facility, land, or other public work, which includes any work suitable for and intended for use by the public, or for the public benefit, financed in whole or part by state funds. “Project” also includes demolition, erection, construction, alteration, improvement, restoration, remodeling, or repairing of a building, structure, facility, land, or public work when the acquisition of property, predesign, design, or demolition is financed in whole or part by state funds (Minn. Statutes, section 177.42). If the award is $25,000 or more and contains activities in the work/accomplishment plan that qualify as a “project” per the definition above, prevailing wage rules in Minn. Statutes, sections 177.41-177.44 apply. If you are unsure if a project is subject to prevailing wage, ask the grant specialist for a copy of DLI’s Project Assessment Form. Grantees must complete the form and return it to the grant specialist. Once ready, the DNR grant specialist will submit it to DLI and copy the grantee on the e-mail. When prevailing wage applies, all bid requests and RFPs must state that the project is subject to prevailing wage to ensure that incoming bids have factored prevailing wage rates into their submittal. A prevailing wage form should accompany these bid submittals. Grantees must retain documentation in the project file either the prevailing wage forms, or a notice from DLI that the project is not subject to prevailing wage. Fraud reporting In addition to OGM policy, various state statutes govern reporting of suspected fraud or misuse of state dollars. State workers with information indicating that public resources (including public money) may have been used for an unlawful purpose must report that information. Any other person with such information is strongly urged to report that information. The DNR takes a “no wrong door” approach for reporting suspected fraud; essentially, the DNR encourages its workforce to report suspected fraud to any DNR supervisor or member of agency leadership, who will connect the person reporting to the correct contact or procedure, as needed. All state agencies are required to report suspected fraud cases to the Department of Revenue for tax fraud investigation, in addition to referring all allegations of suspected fraud to the Office of the Legislative Auditor and the Minnesota Bureau of Criminal Apprehension’s Financial Crimes and Fraud section Requirements for DNR Grantees 7 Page 71 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 (mnfraud.bureau@state.mn.us or 651-739-3750). Grantees may report suspected fraud directly to these agencies, as well, or to their DNR grant manager or any DNR employee. Requirements for working on state land When working on state land, grantees must follow all applicable policies and requirements of that land. Grantees should work with the appropriate management staff for the state land to determine these requirements. Insurance is required to do work on state land, following the requirements of Admin. Audits Under Minn. Statutes, chapter 16B.98 subd. 8, the state (the grantmaking agency, state auditor, attorney general, legislative auditor, Admin, etc.) has the right to perform programmatic or financial audits of the grantee. The grantee’s books, records, documents, and accounting procedures and practices relevant to the grant are subject to state examination for a minimum of six years from the expiration or termination of the grant agreement/GAN, receipt and approval of all final reports, or the required period of time to satisfy state and program retention requirements, whichever is later. This provision is also included in grant agreements/GANs. Records retention Grantees must maintain a file for each project with all project agreements, correspondence, and the records pertaining to project expenses requested for reimbursement. Project records are required for monitoring/audit purposes and must be readily available for review. As with all provisions of the grant agreement/GAN, if the state finds a failure to comply, the State may take action, including immediate termination of the grant agreement/GAN with cause, refusal to disburse additional funds, and/or requiring the return of all or part of the funds already disbursed. All records related to the project must be retained for a minimum of six years from the grant agreement/GAN end date, or the receipt and approval of all final reports, whichever is later. Some grant funds require permanent retention of the grant records, and in those cases, that requirement supersedes the six-year standard. Data practices • Grantees must comply with the Minnesota Government Data Practices Act as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the grantee under their grant agreement/GAN. If a grantee receives a request to release this data, the grantee must immediately notify the State. Following this notification, the State will provide instructions to the grantee concerning the release of data. • Grantees should instruct and train their staff regarding the governing privacy and data practices provisions; maintaining data in a secure manner; and limiting access to work duties and assignments. Requirements for DNR Grantees 8 Page 72 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 • Grantees must mitigate risks associated with the unauthorized access or data breach and report to the DNR any real or perceived security or privacy incident regarding any private data in accordance with MGDPA. • Grantees are not permitted to use private data with artificial intelligence services unless it is approved through the DNR/Minnesota IT vendor security risk and compliance process. AI services are reviewed and verified through a process that includes understanding the AI’s training, ownership of data and level of security. Requirements for DNR Grantees 9 Page 73 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065Exhibit D: Minnesota Department of Natural Resources Conflict of Interest Disclosure Conflict of Interest: A conflict of interest occurs when a person has actual or apparent duty or loyalty to more than one organization and the competing duties or loyalties may result in actions which are adverse to one or both parties. A conflict of interest exists even if no unethical, improper or illegal act results from it. Actual Conflict of Interest: An actual conflict of interest occurs when a person’s decision or action would compromise a duty to a party without taking immediate appropriate action to eliminate the conflict. Examples include, but are not limited to: • One party uses his or her position to obtain special advantage, benefit, or access to the other party’s time, services, facilities, equipment, supplies, badge, uniform, prestige, or influence. • One party receives or accepts money (or anything else of value) from another party or has equity or a financial interest in or partial or whole ownership of the other party’s organization. • One party is an employee, board member or family member of the other party. Potential Conflict of Interest: A potential conflict of interest may exist if a person has a relationship, affiliation, or other interest that could create an inappropriate influence if the person is called on to make a decision or recommendation that would affect one or more of those relationships, affiliations, or interests. Organizational Conflict of Interest: A conflict of interest can also occur with an organization that is a grant applicant in a competitive grant process or grantee of a state agency. Organizational conflicts of interest occur when: • A grantee’s objectivity in carrying out the grant is impaired or compromised due to competing duties or loyalties • A grantee, potential grantee or grant applicant has an unfair competitive advantage through being furnished unauthorized proprietary information or source selection information that is not available to all competitors Grant Contract Agreement for Legislatively named Municipality FY24: Updated July 2023 8 Page 74 of 491Docusign Envelope ID: 5865C609-24BA-83BD-80A1-71F82705D065 This section to be completed by Grantee’s Authorized Representative (AR): I certify that we will maintain an adequate Conflict of Interest Policy, and throughout the term of our agreement, we will monitor and report any actual, potential, individual, or organizational conflicts of interest to the State’s Authorized Representative. I also certify that I have read and understand the description of conflict of interest above and as of this date (check one of the two boxes below):  I do not have any conflicts of interest relating to this project.  I have an actual, potential, individual, or organizational (indicate below) conflict of interest. The nature of the conflict is as follows: If at any time during the grant project I discover a conflict of interest, I will disclose that conflict immediately to the State’s Authorized Representative. Grantee AR’s Printed Name: Workin, Rachel Date: Grantee AR’s Signature: Organization Name: _____________________________________________________________City of Fridley Project Name: __________________________________________________________________ Legal Citation: ML______, Chapter ______, Article ___, Section ___, Subdivision ____ --------------------------------------------------------------------------------------------------------------------------------- State AR’s Printed Name: ________________________________ Date: State AR’s Signature: ____________________________________ Grant Contract Agreement for Legislatively named Municipality FY24: Updated July 2023 9 Page 75 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: James Kosluchar, Public Works Director Brandon Brodhag, Assistant City Engineer Malek Elbatta, Graduate Engineer Title: Resolution No. 2026-67, Ordering Preparation of Preliminary Report, Plans and Specifications for Street Rehabilitation Project No. ST2027-01 Background The attached resolution directs staff to prepare a feasibility report and initiate preliminary design and plan preparation for the proposed Street Rehabilitation Project No. ST2027-01. During the 2026 Street Rehabilitation Project, staff identified street segments within the Melody Manor neighborhood (Ward 1) needing rehabilitation and divided them between the 2026 and 2027 construction projects. This report will define the scope of work for the segments slated for construction in 2027. The total length of the proposed project is 1.9 miles. Please refer to the attached project map for the project location and the streets included in Street Rehabilitation Project No. ST2027-01. Streets and underground utilities in the proposed project area were originally constructed in the 1960s, with the exception of Madison Street which was constructed in 1981. Since their initial construction, the streets have received routine maintenance including crack sealing and sealcoating, with all streets receiving their latest sealcoat in 2006 or 2009. The proposed streets have not received significant rehabilitation since their initial construction. The segments were selected based upon existing pavement age, visual pavement distresses noted by staff, and excessive street maintenance needs. Routine pavement rehabilitation under a planned program with proper timing allows the City of Fridley (City) to maintain a standard of roadway condition throughout the network as well as minimize maintenance costs throughout a roadway segment’s life cycle. Preparation of the feasibility report will allow staff to determine what construction is needed and can take place within the project budget as detailed in the City’s Capital Investment Program (CIP). The feasibility report will further provide a recommendation to the City Council on the proposed project scope and construction. All construction activities associated with the project are recommended to take place in 2027. In June, an open house is planned for property owners adjacent to and within the areas affected by the proposed project. The open house will provide an opportunity for residents to ask questions, provide input on project elements, and give feedback to be considered as the project evolves to a final design. Resident concerns raised at the open house will be addressed in the feasibility report. The scope of the proposed report will address pavement, street improvements, Page 76 of 491water main, sanitary sewer, and storm sewer replacement. There are typical private utilities within the project area. Staff is working with these entities on coordinated work that may be planned by others and completed during the construction of the 2027 project. Financial Impact Funding for this project is derived from several sources including Municipal State Aid street funding, special assessments and Utility Capital Investment Program (CIP) funds (water, sanitary sewer, and storm sewer). Recommendation Staff recommend the approval of Resolution No. 2026-67, Ordering Preparation of Preliminary Report, Plans, and Specifications for Street Rehabilitation Project No. ST2027-01. Focus on Fridley Strategic Alignment X Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-67 2. Exhibit A - Proposed Construction Map Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 77 of 491 Resolution No. 2026-67 Ordering Preparation of Preliminary Report, Plans, and Specifications for Street Rehabilitation Project No. ST2027-01 Whereas, City of Fridley (City) staff regularly monitors the condition of streets and maintains them in good condition; and Whereas, City staff has developed a long-range pavement management plan to rehabilitate select street segments by neighborhoods identified in the plan; and Whereas, the City thereby maintains the condition of its streets in the most cost-efficient manner through this methodology, avoiding failing street conditions and reducing excessive maintenance costs; and Whereas, the City funds these rehabilitation projects through its street reserve fund, with special assessments in accordance with its policies as one source of funding for said projects. Now therefore be it resolved, by the City Council of the City of Fridley as follows: 1. That it appears in the interests of the City and of the property owners affected that there be constructed certain improvements to-wit: Street and utility improvements, pavement reclamation, bituminous paving, concrete curb & gutter, drainage, water main and utility repairs including the street segments as follows: Madison Street Lyric Lane to Osborne Road (CSAH 8) Lyric Lane Ballet Boulevard to Jackson Street Tempo Terrace Ballet Boulevard to Jackson Street Melody Drive Ballet Boulevard to Jackson Street Concerto Curve Ballet Boulevard to Jackson Street Memory Lane Ballet Boulevard to Jackson Street Memory Court Memory Lane to Southern Terminus University Ave E Service Road 73rd Ave N Service Dr to Osborne Road (CSAH 8) 2. That the work involved in said improvements listed above shall hereafter be designated as: Street Rehabilitation Project No. ST2027-01 3. That the Public Works Director, James P. Kosluchar, City Hall, Fridley, MN, is hereby authorized and directed to draw the preliminary plans and specifications and to tabulate the results of his estimates of the costs of completion and all fees and expenses incurred (or to be incurred) in a preliminary report of his finding stating therein whether said improvements are feasible and whether they can best be made as proposed, or in connection with some other improvements Page 78 of 491 (and the estimated costs as recommended), including also a description of the lands or area as may receive benefits there from and as may be proposed to be assessed. 4. That said preliminary report of the Public Works Director shall be furnished to the City Council. Passed and adopted by the City Council of the City of Fridley this 8th day of June, 2026. _______________________________________ Dave Ostwald – Mayor Attest: Melissa Moore – City Clerk Page 79 of 491Planned 2027 Construction Page 80 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Paul Bolin, Commmunity Development Director Stacy Stromberg, Assistant Community Development Director/HRA Nancy Abts, Senior Planner Title: Resolution No. 2026-70, Approving Conditional Use Permit, CUP #26-01 to Allow a 125 Foot Telecommunications Tower at 1241 72nd Avenue NE Background Regulatory History Cellular towers have been regulated under the City of Fridley’s (City) zoning chapters of the City Code since the 1990s. In 1996, the City created a list of pre-identified approved locations for cellular towers and added them to a zoning overlay district. The overlay is now known as the O- 3 Telecommunications Overlay. Towers are permitted by right at properties within the overlay. Locating a tower outside the overlay district requires a Conditional Use Permit (CUP). A Telecommunications Tower CUP is allowed in M-1, M-2, and M-3 districts and railroad rights-of- way that abut these districts. The Request Due to a lack of coverage in the City, a wireless carrier is seeking to add a new tower. The carrier identified a 1/4 mile search radius of where the tower would need to be located. However, the company could not secure a site for a new tower within the overlay. Therefore, Angela Campbell of AMS Wireless has requested approval of a 125’ Wireless Telecommunications Tower under a CUP. The request comes on behalf of Public Safety Towers. The tower will ultimately have wireless facilities for ATT Wireless and has been designed for at least two facilities. The tower will be located on property owned by Crysteel, located at 1241 72nd Avenue NE. This site is outside the O-3 overlay. The facility will be accessed from 73rd Avenue. The property is a through-lot and has frontage on both 73rd and 72nd Avenues. The tower base will be inside an approximately 1,200 square foot fenced enclosure. Additional space is dedicated to a driveway and utility access. Site Description and History The subject property spans between 73rd and 72nd Avenues, west of Central Avenue. It is zoned M-1, Light Industrial. The property has a long history of outdoor storage and environmental Page 81 of 491contamination. Contamination has been addressed on an ongoing basis since the 1970s. There are several storage buildings on the site, dating from the 1960s onwards. In 2014, the property was replatted to allow sale of an adjoining property. Code Requirements and Analysis Parking Application materials show 54 parking spaces. Based on warehouse use for the existing buildings, the site has enough parking spaces. Landscaping and Screening The property alterations do not require a completely updated landscaping plan. However, the project prompted review of the existing landscaping. There are seven dead ash trees on the north edge of the property that must be replaced with compliant plantings. The replacement trees must meet size and diversity requirements. The applicant has not provided a compliant plan for replacing these trees. Additionally, telecommunications towers must be screened by “existing structures, a brick decorative wall, or a solid 100% opaque vegetative enclosure, six feet in height.” The site is not currently screened from the 72nd Avenue right-of-way, or from the apartments located south of 72nd Avenue. The application shows barbed wire enclosing the base of the tower, which is not allowed at this site. Use The 125’ tall tower complies with the zoning chapters of the City Code design requirements for towers. Previous Discussion The Planning Commission held a public hearing regarding this application at their May 20, 2026 meeting. At the hearing, members of the public commented on the application and their concerns regarding the tower's impacts. Following the hearing, the Planning Commission voted unanimously to recommend approval of the CUP with the stipulations drafted by staff and reviewed at the hearing. A summary of comments from the hearing, as well as responses to those comments, is included as an attachment. Legal review Conversation at the Planning Commission meeting about the rarity of similar requests in the City, coupled with public hearing comments about the tower's impacts, led to a review by the City's legal team. Kennedy and Graven's telecommunications attorney, Bob Vose, has reviewed the draft CUP and finds it and the governing ordinance are both appropriate. Conclusion Because of the issues noted, staff find that the application does not meet the standards for Page 82 of 491issuing a CUP without stipulations. Stipulations of approval are included in the resolution. Financial Impact No financial impact. Recommendation Staff recommends approval of Resolution No. 2026-70, Approving Conditional Use Permit, CUP #26-01 to Allow a 125 Foot Telecommunications Tower at 1241 72nd Avenue NE. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places X Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-70 2. CUP 26-01 Land Use Application Summary 3. CUP 26-01 Land Use Application Form 4. CUP 26-01 Application Narrative and Drawings For Public Hearing 5. CUP 26-01 Additional Application Materials 6. CUP 26-01 Additional Application Materials-2 7. CUP 26-01 Public Comments Summary Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 83 of 491 Resolution No. 2026-70 Approving Conditional Use Permit, CUP #26-01 to Allow a 125 Foot Telecommunications Tower at 1241 72nd Avenue NE Whereas, on April 17, 2026, the City of Fridley (City) received an application to allow a telecommunications tower for the property generally located at 1241 72nd Avenue NE, legally as shown on Exhibit B (subject property); and Whereas, the Overlay Zoning Districts Chapter of the Fridley City Code (Code) allows telecommunications towers to be located within properties identified in the O-3 Telecommunications Towers Overlay District without additional zoning approval; and Whereas, the Non-Residential Zoning Districts Chapter of the Code requires a Conditional Use Permit (CUP) for telecommunications towers to be located outside of the O-3 Telecommunications Towers Overlay District, pursuant to the Use Standards contained in the Principal-Use Standards Chapter and Overlay Zoning Districts Chapters of Code; and Whereas, the subject property is not within the O-3 Telecommunications Towers Overlay District; and Whereas, on May 20, 2026, the Planning Commission held a public hearing to consider a request by Angela Campbell of AMS Wireless on behalf of property owner CTE Properties LLC, for the property, for Conditional Use Permit, CUP #26-01 to allow a telecommunications tower on the existing site; and Whereas, following the public hearing at the May 20, 2026 meeting, the Planning Commission unanimously recommended approval of CUP #26-01 with the stipulations represented in Exhibit A; and Whereas, on June 8, 2026, the Fridley City Council approved the stipulations in Exhibit A to this resolution as the conditions on CUP #26-01; and Whereas, the petitioner, AMS Wireless, was presented with Exhibit A, the conditions for CUP #26-01 at the June 8, 2026, City Council meeting; and Whereas, the Procedures chapter of the Code states that this Conditional Use Permit will become null and void one year after the City Council approval date if work has not commenced or if the petitioner has not petitioned the City Council for an extension. Now, therefore be it resolved, that the City Council of the City of Fridley hereby approves CUP #26- 01 and the stipulations represented in Exhibit A are hereby adopted by the City Council of the City of Fridley; Passed and adopted by the City Council of the City of Fridley this 8th day of June 2026. Page 84 of 491 _______________________________________ Dave Ostwald – Mayor Attest: Melissa Moore – City Clerk Exhibit A Stipulations 1. The telecommunications tower must comply with all requirements of the Federal Communications Commission, Federal Aviation Administration, and National Electric Safety Code. 2. Construction, alteration, and expansion of the telecommunications facility all require building permits. 3. The telecommunications tower design must substantially be as presented in the application materials, including: a. The tower must support more than two wireless facilities, b. The tower must be finished with a non-corrosive material, and c. The tower must be finished so as to be compatible with other buildings and structures in the area. 4. All ground equipment must be fully screened from public rights-of-way by existing structures, a brick decorative wall, or a solid 100% opaque vegetative enclosure. When used for screening purposes, chain link fences must have slats. 5. The telecommunications tower must be secured to protect against trespass, without the use of barbed or razor wire. 6. Required landscaping must be replaced as required by City Code Chapter 632, including replacement of the seven dead ash trees on the north side of the property with seven trees which meet the requirements of Chapter 632. Required landscaping must be replaced within one year of CUP approval. 7. The telecommunications tower must at all times be kept and maintained in good condition, order and repair. 8. Per 650.01.9.e.1 of the Fridley City Code, this Conditional Use Permit will become null and void one year after the City Council approval date if work has not commenced or if the Petitioner has not petitioned the City Council for an extension. Page 85 of 491 Exhibit B Lot 1, Block 1, Determan Addition, according to the recorded plat thereof, Anoka County, Minnesota. Page 86 of 491Land Use Application Summary Item: CUP #26-01 Meeting Date: May 20, 2026 GENERAL INFORMATION SPECIAL INFORMATION Applicant: 1980s – 2nd building + expansions permitted, Angela Campbell, AMS Wireless, on Behalf of storage area cleaned, more materials removed, Public Safety Towers Company screening installed, bikeway easement granted Requested Action: 1990s & 2000s – Additional remediation occurs Public Hearing to consider Conditional Use 2014 – Lot is replatted under PS14-05 to Permit, CUP #26-01 for a Wireless accommodate sale of adjacent property. Telecommunications Tower at 1241 72nd Ave NE Legal Description of Property: Location: See attached survey 1241 72nd Avenue NE Public Utilities: Existing Zoning: Building is connected. M-1, Light Industrial District Transportation: Size: Tower will be accessed from 73rd Ave NE 6.09 acres Physical Characteristics: Existing Land Use: Large industrial site with warehouse and large Industrial; Crysteel Manufacturing outdoor storage and parking area Surrounding Land Use & Zoning: Summary of Request: N: Industrial, M-1 AMS Wireless on behalf of Public Safety Towers E: Industrial, M-2 requests approval of a conditional use permit for a S: Multi-Family, R-3 125’ tall wireless telecommunications tower at W: Industrial, M-2 1241 72nd Ave NE. Comprehensive Plan Conformance: Staff Recommendation: The Future Land Use Map designates the City staff recommend approval of the conditional property as Industrial use permit request with stipulations. Zoning Ordinance Conformance: Section 614.04.4 requires a conditional use permit for a wireless facility not located on a site within the O-3 Telecommunications Towers and Wireless Facilities Overlay District. Building and Zoning History: 1949 – Lot is first platted 1968 – First building constructed Aerial of the Property 1976 – Detterman Welding building constructed; City Council Action/60 Day Action Date: some hazardous materials removed City Council – June 8, 2026 60 Day Date – June 16, 2026 Staff Report Prepared by Nancy Abts Page 87 of 491 Permit Information: Permit Type: Conditional Use Permit Permit Subtype: Commercial Permit Number: CUP26-000001 Work Description: New Proposed Telecommunications Tower - 125' Monopole Property Information: Address: 1241 72ND AVE NE City, State and Zip: FRIDLEY, MN 55432 PIN: 123024310115 Property Owner Information: Property Owner: CTE PROPERTIES LLC Property Owner Address: 52248 EMBER RD LAKE CRYSTAL, MN 56055 Applicant Information: Name: AMS Wireless On Behalf of Public Safety Towers Company Phone: (919) 649-2486 Application Information: Zoning District M-1 Light Industrial Other SUBMITTAL REQUIREMENTS Is the applicant the property owner? No Will your project require a parking lot expansion of four (4) or No more parking stalls. Payment Information: Payment Date Received From Payment Amount 04/17/2026 Anegla Campbell $1,541.25 Signature: Application Date: Application Date: 04/17/2026 60-Day Deadline: 06/16/2026 120-Day Extension: 08/15/2026 Review Dates: Activity Name Date Planning Commission Meeting 05/20/2026 City Council Meeting 06/08/2026 Page 88 of 491 May 1, 2026 Project Narrative for FRIDMN-0374 1241 72nd Ave NE Fridley MN 55432 Parcel Number: 12-30-24-31-0115 The proposed site is located on a 6.09-acre parcel owned by CTE Properties, LLC, a limited liability company under the laws of Minnesota (Crysteel Trucking). Public Safety Towers (PST) is proposing to install a new Wireless Communications Facility at 1241 72nd Ave NE Fridley MN 55432. PST is proposing to construct a 125’ Monopole (tower) within a 35’ x 35’ lease area that will be enclosed with fencing. The purpose of the proposed site is in response to changes in technology for wireless services, and a commitment to providing better service throughout the area, to existing and potential customers. There is a need to increase coverage as well as safety services and data capabilities in this area, so this will help service the surrounding areas and fill in the current gaps in coverage. This parcel of property is zoned M1 - Light Industrial District and will meet the following criteria: Maximum Height of 125’ Will support more than two wireless facilities for tower equipment as well as more than two facilities for the ground support structure. Tower will be designed to blend in with surrounding environment Proposed tower is a monopole design and will be finished with non-corrosive material Proposed tower will not be illuminated Location of tower is inside a fenced area at the Crysteel Trucking Equipment property which is currently screened from public right of ways with fencing and vegetation and not near any residential parcels. All ground equipment will be enclosed with steel cabinet structures Tower will be reasonably posted and secured to protect against trespass and designed to discourage unauthorized climbing Signs no larger than four square feet in size will be posted Ordinary and reasonable care of tower and facility will always be employed; tower and facility will be maintained in good condition order and repair so that the same shall not menace or endanger the life or property of any person Public Safety Towers will install and maintain the tower and facility in compliance with the requirements of the National Electric Safety Code and all FCC, State and local regulations, and in such a manner that will not interfere with the use of other property All maintenance or construction on tower and facility will be performed by qualified personnel Compliance with all FCC radio frequency standards will be maintained by public safety towers and copies of all FCC information will be provided to the City annually In the event the use of the tower or facility is discontinues by public safety tower company or if a notice to FCC is filed for discontinues use, tower owner will provide written notice to the City. An attempt was made to locate a new telecommunications facility on one of the pre-approved properties listed on Fridley City Code Chapter 205.30 Telecommunications Towers and Facilities District, Appendix A. The only property on the list that met the location criteria is number 9 on the list, the Cummins Corporation. The Cummins Corporation declined a ground lease offer for a tower. George Mbuthia, Logistics Site Manager advised that the Cummins Corporation is transforming their property and a tower would hinder that process. Please see documents attached below: Site Lease Agreement between Crysteel Trucking & Public Safety Towers dated 2/17/2026 FAA Determination of No Hazard Letter dated 3/13/2026 FCC Antenna Registration dated 4/10/2026 Radio Frequency Electromagnetic Energy (RF-EME) Compliance Report dated 3/15/2026 Environmental Geotechnical Report by TEP (Tower Engineering Professionals) dated 3/19/2026 Documents uploaded to the Portal: Survey, SMW Engineering Group dated 12/3/2025 Site Plan / Site Drawings, AMS Wireless Solutions dated 10/24/2025 Valmont Tower Design dated 4/1/2026 Letter of Authorization from Property Owner dated 4/15/2026 Page 89 of 491Please let me know if you have any questions or need any additional information. Thank you! Angela Campbell Project Manager 919.649.2486 4431 Town Center Place Kingwood, TX 77339 angela@ams-wireless.com Page 90 of 491Page 91 of 491Page 92 of 491Page 93 of 491Page 94 of 491Page 95 of 491Page 96 of 491Page 97 of 491Page 98 of 491Page 99 of 491Page 100 of 491Page 101 of 491Page 102 of 491Page 103 of 491Page 104 of 491Page 105 of 491Page 106 of 491Page 107 of 491Page 108 of 491Page 109 of 491Page 110 of 491Page 111 of 491Page 112 of 491Page 113 of 491Page 114 of 491Page 115 of 491Page 116 of 491Page 117 of 491Page 118 of 491Page 119 of 491Page 120 of 491Page 121 of 491Page 122 of 491Page 123 of 491Page 124 of 491Page 125 of 491Page 126 of 491Page 127 of 491Page 128 of 491Page 129 of 491Page 130 of 491Page 131 of 491Page 132 of 491Page 133 of 491Page 134 of 491Page 135 of 491Page 136 of 491Page 137 of 491Page 138 of 491Page 139 of 491Page 140 of 491Page 141 of 491Page 142 of 491Page 143 of 491Page 144 of 491Page 145 of 491Page 146 of 491Page 147 of 491Page 148 of 491Page 149 of 491Page 150 of 491Page 151 of 491Page 152 of 491Page 153 of 491Page 154 of 491Page 155 of 491Page 156 of 491Page 157 of 491Page 158 of 491Page 159 of 491Page 160 of 491Page 161 of 491Page 162 of 491Page 163 of 491Page 164 of 491Page 165 of 491Page 166 of 491Page 167 of 491Page 168 of 491Page 169 of 491Page 170 of 491Page 171 of 491Page 172 of 491Page 173 of 491TERMS DESCRIBING CONSISTENCY OR CONDITION GENERAL NOTES COARSE-GRAINED SOILS Descriptive Terms SPT Blow Count FINE-GRAINED SOILS Descriptive Terms SPT Blow Count Group Symbols Typical Names Sampler Symbols Log Abbreviations Page 174 of 491Page 175 of 491Page 216 of 491Public Hearing Questions & Responses Planning Commission — May 20, 2026 CUP #26-01 — AMS Wireless / Public Safety Towers Company | 1241 72nd Avenue NE The following summarizes the concerns raised during the public hearing and provides responses. Concern / Question Response Why does the City The City’s intention is to consolidate the number of require the tower to telecommunications facilities in the community. Co-location support 2+ wireless requirements are not uncommon in the industry, and it has facilities? been a requirement in Fridley since 1996. Why is this tower being The proposed location was identified in response to a search located here? request issued by a wireless carrier (in this case, AT&T Wireless). The carrier had identified a “dead spot” in their coverage, and Should the City update has need of a site within a ¼ mile search radius in order to its overlay district, if this adequately provide coverage. Although there is a site within the applicant was not able search radius in the Overlay district where this tower could be to find a suitable site built, the property owner (Cummins) was not able to commit to within the overlay? adding a tower to their site at this time. Placement on the City's water tower in Locke Park was not a viable option, as that structure is located too far from the coverage gap this tower is intended to address. This is the first application the City has received for a tower outside of the overlay district in 11 years. If repeated applications are received, the City can reevaluate the ordinance. The significant cost to perform an updated study of wireless coverage has not be included in the 2026 budget. The City Attorney’s office has reviewed the ordinance and proposed CUP, and find them appropriate at this time. How is the tower The proposed monopole tower is similar to other utility intended to blend into transmission lines, and mimics the straightforward design of the surrounding other industrial buildings in the area. environment? In this setting, there will not be a “stealth design” trying to mimic a tree or any other structure. Page 238 of 491Isn’t the ordinance The ordinance protects residential properties by requiring supposed to protect towers to locate in non-residential zoning districts. Due to the residential properties? nature of wireless telecommunications, towers must be located near residential areas, so that residents can receive cell service at their homes. Are setback distances The World Health Organization (WHO) is an advisory agency, from residential not a regulatory body. The WHO does not establish setback properties adequate, in distances for wireless telecommunications towers. It can and light of setbacks does provide general guidance on radiofrequency (RF) required by the WHO exposure limits, not physical proximity. Similarly, the FCC and FCC? establishes RF emission standards — not setbacks — and the proposed installation is designed to comply with FCC standards. Will noise from the The proposed tower is a passive monopole structure and tower impact generates no noise. Additionally, no standby generator is residences? planned for the site. Will the tower Fridley’s assessing division has reviewed the application and negatively affect nearby does not have concerns about impacts to property values. property values? Research on the relationship between telecommunications towers and property values is mixed and generally inconclusive, particularly in industrial and commercial settings. Due to the complex influences on property values, well-designed studies of residential property valuation have found minimal or no statistically significant impact in most cases. The subject property is zoned M-2 Heavy Industrial. The surrounding area includes established industrial operations, a rail corridor, and Highway 65. The proposed use is consistent with the character of the area and is not expected to have an impact on residential property values in the vicinity. Why weren’t residents of Under state law and City ordinance, public hearing notices are the nearby mailed to properties within 350 feet of the proposed project manufactured home site. Because the manufactured communities are over 600 feet community notified? from the project site, they did not receive mailed notice. Public hearing notices are posted on the City’s website and printed in the Star Tribune in advance of the hearing. Why does one property The tower is being constructed and operated entirely by Public owner benefit while Safety Towers Company under a private lease with the property Page 239 of 491neighbors bear the owner. The tower is not being built for the exclusive use of impacts? Crysteel; rather, it is designed to accommodate up to three major wireless carriers to address a documented coverage gap serving the broader community. The leased area is small (approximately 400 square feet) and the operational impacts on the host property and surrounding area are minimal. Is there a risk of fire Fridley’s Fire Department has reviewed the application and from the tower? does not have concerns about fire-related impacts. Telecommunications towers do not present a significant fire hazard. The tower structure itself is steel and non-combustible. The equipment cabinet contains a limited amount of electrical equipment and is designed with internal fire suppression to contain any incident. The tower will be equipped with lightning protection in accordance with applicable codes. Will the tower have No flashing lights are planned for the tower because they are flashing or blinking not currently required. If they are required by a federal lights? regulator at some point in the future, the CUP would allow them to be added. Who monitors RF The FCC is the federal agency responsible for establishing and emissions from the enforcing radiofrequency (RF) exposure standards for wireless tower? facilities. All licensed wireless carriers are required to certify compliance with FCC RF exposure limits as a condition of their operating licenses. RF levels from a typical cell tower at ground level are a small fraction of FCC limits — generally far lower than exposure from common devices such as cell phones, Wi-Fi routers, and microwave ovens. Was the Environmental The application was distributed for interdepartmental review, Quality and Energy with no safety or environmental concerns identified by any City Commission (EQEC) department. involved in the review? The EQEC was not formally included as a reviewing body for this application; the EQEC does not review any land use applications. However, the Commissioner serving as EQEC Chair participated in the Planning Commission public hearing and deliberations and raised no objections based on environmental quality grounds. Page 240 of 491Could the tower be Wireless carriers identify search rings — geographic areas located at the municipal defined by propagation modeling — within which a tower must garage or another City- be sited to address a specific coverage gap. The proposed owned site instead? location falls within the carrier’s required quarter-mile search ring. The municipal garage site is outside that search ring and would not resolve the identified coverage deficiency. Placement on the City's water tower in Locke Park was not a viable option, as that structure is located too far from the coverage gap this tower is intended to address. The applicant reviewed the existing properties within the City’s telecommunications overlay district before identifying the proposed site, and no suitable alternative within the overlay was available. Is it appropriate to site a A Phase I Environmental Site Assessment (ESA) has been tower next to a facility completed for the subject property as part of this project. An with known additional soil and groundwater plan was recommended environmental concerns through the ESA and is being developed in response to federal or flammable materials? regulations. The presence of industrial operations on adjacent or host properties does not, by itself, preclude telecommunications tower siting. The city’s Fire Department has reviewed the application and does not have concerns about public safety impacts from the tower. Who is responsible for Public Safety Towers Company will be responsible for the the security of the tower security and maintenance of the tower and its lease area, site? independent of the host property owner’s operations. The site will be secured with its own dedicated fence in addition to the existing on-site security infrastructure of the host property (including surveillance cameras), providing multiple layers of access control. What is the cost to There is no public cost associated with this project. The tower is taxpayers? proposed to be financed, constructed, and operated entirely by Private Safety Towers Company under a private lease agreement. The City incurs no capital or operational expense. In 2005, the Planning The Planning Commission makes recommendations to the City Commission denied an Council regarding land use applications; it does not have the application for a tower ability to deny applications. The City Council did ultimately near Springbrook, but Page 241 of 491the City Council approve the proposed tower, but the proposed tower was not approved it. constructed. Land use applications are considered separately based on their unique fact pattern. The application narrative Although these items were submitted by the applicant and as mentions FAA and FCC such are public information, they were not included in the document as Planning Commission packet because their content is not a attachments, but they subject the Planning Commission needs to review. They will be were not in the Planning included in the City Council packet. Commission materials. Page 242 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Emylie Morris, Accounts Payable Title: Resolution No. 2026-69, Approving Claims for the Period Ending June 3, 2026 Background Attached is Resolution No. 2026-69, and the claims report for the period ending June 3, 2026. Financial Impact Included in the budget. Recommendation Staff recommend the approval of Resolution No. 2026-69, Approving Claims for the Period Ending June 3, 2026 Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places x Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-69 2. 06-03-26 Bank Transaction Report Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 243 of 491 Resolution No. 2026-69 Approving Claims for the Period Ending June 3, 2026 Whereas, Minnesota Statute § 412.271 generally requires the City Council to review and approve claims for goods and services prior to the release of payment; and Whereas, a list of such claims for the period ending June 3, 2026, was reviewed by the City Council. Now, therefore be it resolved, that the City Council of the City of Fridley hereby approves the payment of the claims as presented. Passed and adopted by the City Council of the City of Fridley this 8th day of June 2026. _______________________________________ Dave Ostwald - Mayor Attest: Melissa Moore – City Clerk Page 244 of 491 Bank Transaction Report City of Fridley, MN Transaction Detail Issued Date Range: 05/21/2026 - 06/03/2026 Bank Account: City of Fridley DateDescription Type Amount 05/22/2026FRIDLEY POLICE ASSOCIATION-PY only EFT -188.00 05/22/2026FRIDLEY-IAFF DUES/INTL ASSOC/FIRE FIGHTERS EFT -120.00 05/22/2026VOYA INSTITUTIONAL TRUST (for MINN DEFERRED) Bank Draft -1,410.83 05/22/2026VOYA INSTITUTIONAL TRUST (for MINN DEFERRED) Bank Draft -2,434.87 05/22/2026CITY OF FRIDLEY-MISSION SQUARE-457 Def.Comp Bank Draft -261.91 05/22/2026CITY OF FRIDLEY-MISSION SQUARE-457 Def.Comp Bank Draft -21,988.66 05/22/2026CITY OF FRIDLEY-MISSION SQUARE-457 Def.Comp Bank Draft -6,006.70 05/22/2026CITY OF FRIDLEY-MISSION SQUARE RHS Retiree Health Sav Bank Draft -413.08 05/22/2026OPTUM BANK (HSA) Bank Draft -6,784.83 05/22/2026OPTUM BANK (HSA) Bank Draft -2,759.91 05/22/2026PERA - PUBLIC EMPLOYEES Bank Draft -49,349.44 05/22/2026PERA - PUBLIC EMPLOYEES Bank Draft -164.46 05/22/2026PERA - PUBLIC EMPLOYEES Bank Draft -75,442.61 05/22/2026CITY OF FRIDLEY-MISSION SQUARE RHS Retiree Health Sav Bank Draft -150.00 05/22/2026CITY OF FRIDLEY-MISSION SQUARE RHS Retiree Health Sav Bank Draft -2,475.00 05/22/2026CITY OF FRIDLEY-MISSION SQUARE RHS Retiree Health Sav Bank Draft -600.00 05/22/2026CITY OF FRIDLEY-MISSION SQUARE Roth IRA Bank Draft -6,911.19 05/22/2026BRI/BENEFIT RESOURCE LLC - BPA/VEBA Bank Draft -1,000.00 05/22/2026INTERNAL REVENUE SERVICE - PAYROLL TAXES Bank Draft -55,150.58 05/22/2026INTERNAL REVENUE SERVICE - PAYROLL TAXES Bank Draft -20,382.80 05/22/2026MINN DEPT OF REVENUE - PAYROLL TAX Bank Draft -33,718.89 05/22/2026INTERNAL REVENUE SERVICE - PAYROLL TAXES Bank Draft -79,207.37 05/22/2026Payroll EFT EFT -452,285.26 05/27/2026ANOKA COUNTY PROP RECORDS/TAXATION Check -1,000.00 05/27/2026ANOKA COUNTY TREASURY OFFICE Check -1,500.00 05/27/2026APPLE FORD WHITE BEAR LAKE Check -172.80 05/27/2026ASPEN MILLS INC Check -345.61 05/27/2026B & B PORTFOLIO Check -200.00 05/27/2026BACHMAN'S Check -292.50 05/27/2026BLUUM OF MINNESOTA LLC Check -379.68 05/27/2026BOLTON & MENK INC Check -49,886.00 05/27/2026BOSCH BUILDING TECHNOLOGIES LLC Check -12,310.66 05/27/2026BRAUN INTERTEC CORPORATION Check -820.50 05/27/2026BRUTLAG, KEITH WALTER Check -1,227.00 05/27/2026CANON FINANCIAL SERVICES INC Check -1,847.91 05/27/2026CENTERPOINT ENERGY-MINNEGASCO Check -365.46 05/27/2026CENTERPOINT ENERGY-MINNEGASCO Check -40.00 05/27/2026CENTRAL PRO SUPPLY Check -184.35 05/27/2026CENTURY LINK Check -73.76 05/27/2026CERES ENVIRONMENTAL INC Check -135.00 05/27/2026COMCAST (PO BOX 37601) Check -1,845.10 05/27/2026CORE & MAIN LP Check -4,624.03 Page 245 of 491DateDescription Type Amount 05/27/2026DELL MARKETING LP Check -3,674.06 05/27/2026FAUL PSYCHOLOGICAL PLLC Check -4,725.00 05/27/2026FERGUSON WATERWORKS #2518 Check -20,705.60 05/27/2026FINANCE AND COMMERCE INC Check -371.80 05/27/2026FLAGSHIP RECREATION LLC Check -184,622.61 05/27/2026FLEET PRIDE TRUCK & TRAILER PARTS Check -797.62 05/27/2026GERTENS GREENHOUSE INC Check -368.40 05/27/2026JACOBSON, DAVID Check -100.00 05/27/2026JEN S CONSULTING LLC Check -200.00 05/27/2026KIMLEY-HORN & ASSOCIATES INC Check -28,666.25 05/27/2026KLEIN UNDERGROUND LLC Check -830.48 05/27/2026LEADS ONLINE LLC Check -3,230.00 05/27/2026LEAGUE OF MN CITIES INS TRUST Check -61,630.00 05/27/2026MARKET & JOHNSON INC Check -297,798.89 05/27/2026MARTIN MARIETTA Check -3,157.90 05/27/2026MARVEL SEWER & DRAIN Check -28.00 05/27/2026MC TOOL & SAFETY Check -238.84 05/27/2026MCCANDLESS, HARPER Check -69.44 05/27/2026MENARDS - FRIDLEY Check -127.43 05/27/2026METERING & TECHNOLOGY SOLUTIONS Check -2,349.31 05/27/2026METRO VOLLEYBALL OFFICIALS ASSOCIATION Check -629.00 05/27/2026METROPOLITAN COUNCIL/MCES (SAC CHARGES) Check -2,460.15 05/27/2026MIDWEST MACHINERY/MINNESOTA AG POWER INC Check -93.01 05/27/2026MINN CHIEFS OF POLICE ASSOC Check -775.00 05/27/2026MINN IT Check -853.65 05/27/2026MINNESOTA BRAIN INJURY ALLIANCE Check -200.00 05/27/2026MINNESOTA EQUIPMENT Check -217.44 05/27/2026NSRP FRIDLEY MARKET OWNER LLC Check -22,854.00 05/27/2026NUSS TRUCK AND EQUIPMENT Check -482.83 05/27/2026ON SITE COMPANIES Check -276.00 05/27/2026O'REILLY AUTO PARTS Check -112.54 05/27/2026Q3 CONTRACTING INC / PSC Check -1,388.00 05/27/2026RENEWAL BY ANDERSEN Check -245.80 05/27/2026SIR LINES-A-LOT Check -35,413.00 05/27/2026ST CROIX RECREATION FUN PLAYGROUNDS Check -39,076.80 05/27/2026SUBURBAN TIRE WHOLESALE INC Check -532.00 05/27/2026THE NEW FERAL CATS Check -600.00 05/27/2026TRAPP, EVAN Check -94.99 05/27/2026TWIN CITY HEATING AND AIR Check -40.00 05/27/2026VERIZON WIRELESS Check -480.12 05/27/2026VESTIS Check -312.46 05/27/2026WAUSAU TILE INC Check -14,542.88 05/27/2026WS & D PERMIT SERVICES Check -156.20 05/27/2026XCEL ENERGY Check -25,827.79 06/01/2026TROY KIMBLER Check -12.18 06/01/2026TROY KIMBLER Check -16.28 06/01/2026HEALTH PARTNERS Bank Draft -7,231.89 06/02/2026ANDREW ENRIQUEZ Check -64.66 06/02/2026R3 RENOVATIONS LLC Check -42.04 06/02/2026KL MN 1 LLC Check -100.00 06/02/2026KRYSTAL & JACOB SCIDMORE Check -181.62 06/02/2026AUSTEN MILLER Check -170.31 06/02/2026PAM WELLUNSON Check -639.37 06/02/2026LINDA GARDINER Check -125.57 06/02/2026PERRY ROECKER Check -60.79 Page 246 of 491Date DescriptionType Amount 06/03/2026LAW ENFORCEMENT LABOR SERVICES Check -3,032.64 06/03/2026LEGALSHIELD Check -406.85 06/03/2026MINN CHILD SUPPORT PAYMENT CENTER Check -422.23 06/03/2026NCPERS MINNESOTA-478000 Check -560.00 06/03/2026ALEX PRO FIREARMS LLC Check -9,582.00 06/03/2026ALGOIRE, KILEY Check -100.00 06/03/2026ANOKA COUNTY TREASURY OFFICE Check -36.00 06/03/2026ASPEN MILLS INC Check -246.82 06/03/2026AT & T WIRELESS SERVICE Check -675.00 06/03/2026BARR ENGINEERING Check -3,255.00 06/03/2026BNSF RAILWAY COMPANY Check -1,786.35 06/03/2026BOLTON & MENK INC Check -40,025.70 06/03/2026BRI/BENEFIT RESOURCE LLC - BPA/VEBA Check -810.25 06/03/2026BROADWAY AWARDS Check -84.50 06/03/2026BUSINESS RADIO LICENSING Check -125.00 06/03/2026CARR'S TREE SERVICE INC Check -5,350.00 06/03/2026CENTERPOINT ENERGY-MINNEGASCO Check -3,076.56 06/03/2026COMCAST/XFINITY (PO BOX 60533) Check -676.17 06/03/2026COMPANION ANIMAL CONTROL Check -500.00 06/03/2026CORE & MAIN LP Check -1,502.32 06/03/2026CUMMINS INC Check -122.42 06/03/2026CUSTOM GRAPHIX Check -82.00 06/03/2026EKBOM ENTERPRISES INC Check -365.00 06/03/2026ENERFUSION INC Check -21,480.00 06/03/2026ESRI INC - ENVIRONMENTAL SYST RESEARCH Check -691.00 06/03/2026EVANS, CAROLYN Check -48.99 06/03/2026FEDEX CORP Check -15.17 06/03/2026FIRE SAFETY USA Check -404.95 06/03/2026GENERAL REPAIR SERVICE Check -2,799.11 06/03/2026HAWKINS INC Check -1,149.93 06/03/2026HILLMAN, WILLIAM Check -100.00 06/03/2026HOSE PROS LLC Check -61.27 06/03/2026IKIER, CHERYL Check -900.00 06/03/2026JB PICTURE FRAMING STUDIO Check -276.49 06/03/2026KATH FUEL OIL SERVICE Check -783.40 06/03/2026KENNEDY & GRAVEN CHARTERED Check -2,887.30 06/03/2026LAKE RESTORATION INC Check -375.37 06/03/2026LANGE, JAMES Check -1,014.30 06/03/2026LEAGUE OF MINNESOTA CITIES Check -60.00 06/03/2026LONG RUN LEADERSHIP CONSULTING Check -3,666.67 06/03/2026MADDEN GALANTER HANSEN LLP Check -1,574.50 06/03/2026MARTIN MARIETTA Check -120.00 06/03/2026MC TOOL & SAFETY Check -109.44 06/03/2026MESSER, WALTER Check -616.02 06/03/2026METROPOLITAN LIFE INSURANCE COMPANY Check -17,197.46 06/03/2026MIDWEST MACHINERY/MINNESOTA AG POWER INC Check -66.61 06/03/2026MIES OUTLAND OF ST CLOUD LLC Check -12,070.00 06/03/2026MINN CHIEFS OF POLICE ASSOC Check -875.00 06/03/2026MINN DEPT OF HEALTH Check -32,141.00 06/03/2026MINN IT Check -736.01 06/03/2026MINN RECREATION & PARK ASSOC - MRPA Check -175.00 06/03/2026MINNESOTA ROADWAYS Check -230.50 06/03/2026MITY-LITE INC Check -94.62 06/03/2026NELSON CHEESE & DELI Check -245.50 06/03/2026NFP INSURANCE SERVICES INC Check -663.75 Page 247 of 491DateDescription Type Amount 06/03/2026NOVA FIRE PROTECTION INC Check -1,635.00 06/03/2026PLANT & FLANGED EQUIP CO Check -139.35 06/03/2026PLATINUM POWER WASHING INC Check -425.24 06/03/2026PRECISION LANDSCAPE AND TREE INC Check -93,570.00 06/03/2026PREMIUM WATERS INC Check -115.39 06/03/2026PYE-BARKER / NARDINI FIRE Check -4,427.00 06/03/2026QUADIENT FINANCE USA INC Check -1,475.90 06/03/2026RAILROAD MANAGEMENT COMPANY LLC Check -458.76 06/03/2026REMTECH REMEDIATION TECHNOLOGIES Check -249.00 06/03/2026RENEWAL BY ANDERSEN Check -353.40 06/03/2026RJM CONSTRUCTION LLC Check -261,432.17 06/03/2026SHRED RIGHT Check -128.99 06/03/2026 STIMEY ELECTRICCheck -18960.15 06/03/2026 TAHO SPORTSWEARCheck -3541.70 06/03/2026 TIMESAVER OFF SITE SECRETARIAL INCCheck -534.00 06/03/2026 TOFT, TAYLORCheck -11955.00 06/03/2026 TOP GEAR / HELMETS R USCheck -569.75 06/03/2026 ULINECheck -275.04 06/03/2026 UNIVERSITY OF MINNESOTACheck -450.00 06/03/2026 UNIVERSITY OF ST. THOMASCheck -2677.50 06/03/2026 VESTISCheck -790.48 06/03/2026 WOLF, SHELBYCheck -297.84 06/03/2026 XCEL ENERGYCheck -2264.97 Bank Account Total: (176) -2,249,635.55 Report Total: (176) -2,249,635.55 Summary Bank Account Count Amount City of Fridley 176 -2,249,635.55 Report Total:176 -2,249,635.55 Cash Account Count Amount **No Cash Account** 1 0.00 999 999-101100 Cash in Bank - CITY Pooled Cash 175 -2,249,635.55 Report Total:176 -2,249,635.55 Transaction Type Count Amount Bank Draft 21 -373,845.02 Check 152 -1,423,197.27 EFT 3 -452,593.26 Report Total: 176 -2,249,635.55 Page 248 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: James Kosluchar, Public Works Director Brandon Brodhag, Assistant City Engineer Title: Resolution No. 2026-66, Approving Municipal Consent to the Minnesota Department of Transportation Final Layout for Trunk Highway 65 Improvement Project Background This project includes reconstruction of the two mile stretch of Central Ave (TH 65) between 37th Avenue to 53rd Avenue. This project will look to address safety concerns along this corridor while enhancing the connectivity and quality of life for the residents that live and use the corridor. The project will benefit all travelers by reconstructing the road, upgrading pedestrian crossings, improving sidewalks and pathways, managing speed, expanding multimodal options and improving transit access. The Minnesota Department of Transportation (MnDOT) is also coordinating with Metro Transit to install improved transit stations and with the cities of Fridley, Columbia Heights and Hilltop to replace local utilities along the corridor. This hearing fulfills the legal requirement under Minnesota Statute § 161.164 following the City of Fridley's (City) receipt of the official layout on April 14. The purpose of this public hearing is to gather public feedback, review the proposed infrastructure adjustments and officially enter the final layout into the public record before the City Council (Council) takes legislative action. The public hearing was advertised in accordance with statutory requirements and officially published in the Star Tribune on May 8, 2026, satisfying the required 30 day publication window before the hearing date. During the hearing, MnDOT representatives will give a technical presentation detailing the final layout and construction impacts. The proposed layout focuses on the reconstruction of the Central Avenue corridor to integrate the upcoming METRO F Line Bus Rapid Transit (BRT) infrastructure and improve regional safety. Because these improvements alter existing property access, expand transit capacity, and require permanent easements, they trigger the formal municipal consent process under state law. The hearing opens a 90 day statutory window during which the Council must pass a resolution to either approve or disapprove the final layout. If the Council fails to take formal action by September 8, 2026, the project is legally deemed approved by default under Minnesota law. Staff requests consideration including input and information received at the public hearing. Following this public hearing, the Council will be asked to address Resolution No. 2026-66 to consider approval of the layout for MnDOT Trunk Highway 65 Improvement Project. Page 249 of 491Financial Impact • MnDOT’s Overall Current Project Budget - $55,800,000 • City Project Cost Share (Individual Project Maximum Contribution) - $423,000 Recommendation Staff recommends the Council open the Public Hearing for the MnDOT Trunk Highway 65 Improvement Project and hear all those who wish to address the Council. After conclusion of the public hearing, staff recommends the approval of Resolution No. 2026-66, Approving Municipal Consent to the Minnesota Department of Transportation Final Layout for Trunk Highway 65 Improvement Project. Focus on Fridley Strategic Alignment X Vibrant Neighborhoods & Places Financial Stability & Commercial Prosperity Organizational Excellence Community Identity & Relationship Building X Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-66 2. TH 65 - 52nd & 53rd Intersection Layouts 3. SP 0207-130 TH 65 Layout Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 250 of 491 Resolution No. 2026-66 Approving Municipal Consent to the Minnesota Department of Transportation Final Layout for Trunk Highway 65 Improvement Project Whereas, the Commissioner of Transportation has prepared a final layout for State Project 0207- 130 on Trunk Highway 65, from a point approximately 250 feet south of 52nd Avenue to the I- 694 eastbound off-ramp within the City of Fridley for roadway reconstruction; and seeks the approval thereof, as described in M.S. § 161.162 to § 161.167; and Whereas, said final layout is on file in the Metro District Minnesota Department of Transportation office, Roseville, Minnesota, dated April 14, 2026, S.P. 0207-130, from 37th Avenue NE to the I- 694 Eastbound Off-Ramp; and Whereas, pursuant to M.S. § 161.164, the City Council conducted a properly noticed public hearing on June 8, 2026, at the Fridley Civic Campus, where all interested parties, residents, and affected property owners were given an opportunity to be heard; and Whereas, the City Council has reviewed the final layout and determined that the project serves the best interests of the City of Fridley and its residents. Now, therefore be it resolved, that the City Council of the City of Fridley: 1. The City Council hereby officially grants Municipal Consent to the MnDOT Final Layout for the Trunk Highway 65 improvement project within the City of Fridley, as presented. 2. The City Clerk is hereby authorized and directed to forward a certified copy of this Resolution to the MnDOT District Engineer within seven days of its adoption. 3. City staff is directed to continue working closely with MnDOT and Metro Transit personnel during the final engineering and design phases to minimize local construction disruptions. Passed and adopted by the City Council of the City of Fridley this 8th day of June, 2026. _______________________________________ Dave Ostwald – Mayor Attest: Melissa Moore – City Clerk Page 251 of 491 TH 65 & 52nd Avenue Intersection Layout Page 252 of 491 rd TH 65 & 53 Avenue Intersection Layout Page 253 of 491 AGENDA REPORT Meeting Date: June 8, 2026 Meeting Type: City Council Submitted By: Joe Starks, Finance Director Shannon Veeraboina, Assistant Finance Director Title: Resolution No. 2026-68, Approving and Accepting the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending December 31, 2025 Background Pursuant to Minnesota Statute § 471.697 and City Charter § 7.11, the City Manager must submit to the City Council and the Office of the State Auditor (OSA) a complete financial report for the City of Fridley (City) for the preceding fiscal year. In order to satisfy these requirements, the City prepares the Annual Comprehensive Financial Report (ACFR) (Exhibit A) with the assistance of an external auditing firm, Redpath and Company (Redpath). Consistent with these accounting regulations, Redpath audited the financial activities and statements of the City, which included a two–week, hybrid site visit in April. As a result of this process, Redpath issued an unmodified or “clean” audit opinion, indicating the financial statements of the City are fairly presented and free of any material misstatement in accordance with Generally Accepted Accounting Principles (GAAP). Redpath also reviewed other financial management practices of the City, such as contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions and tax increment financing. The attached Audit Management Letter (Exhibit B), Internal Control Report (Exhibit C) and Legal Compliance Report (Exhibit D) summarize the audit results. Assuming the City Council approves and accepts the attached reports, staff will submit the ACFR to the OSA and publish a corresponding summary in the official publication as required by the City Charter. These documents will also be on file and available for public inspection in the City Clerk’s Office. Financial Impact None. Recommendation Staff recommend approval of Resolution No. 2026-68, Approving and Accepting the Annual Page 255 of 491Comprehensive Financial Report (ACFR) for the Fiscal Year ending December 31, 2025. Focus on Fridley Strategic Alignment Vibrant Neighborhoods & Places X Financial Stability & Commercial Prosperity X Organizational Excellence Community Identity & Relationship Building Public Safety & Environmental Stewardship Attachments and Other Resources 1. Resolution No. 2026-68 2. 2025 ACFR 3. City of Fridley 2025 Final Issued Audit Management Letter 4. City of Fridley 2025 Final Issued Internal Control Report 5. City of Fridley 2025 Final Issued Legal Compliance Report Vision Statement We believe Fridley will be a safe, vibrant, friendly, and stable home for families and businesses. Page 256 of 491 Resolution No. 2026-68 Approving and Accepting the Annual Comprehensive Financial Report for the Fiscal Year Ending December 31, 2025 Whereas, Minnesota Statute § 471.697 and City Charter § 7.11 require the City Manager to submit to the City Council and other parties a complete financial report for the City of Fridley (City) for the preceding fiscal year; and Whereas, the City engaged the Redpath and Company to audit the financial statements of the governmental activities, business–type activities, aggregate discretely presented component units, each major fund and aggregate remaining fund information of the City for the fiscal year ending December 31, 2025; and Whereas, Redpath and Company conducted a site visit between April 20, 2026, and May 4, 2026, to complete the majority of the auditing process for the fiscal year ending December 31, 2025; and Whereas, as a result of this process, Redpath and Company issued an unmodified or “clean” audit opinion, indicating the financial statements of the City are fairly presented and free of any material misstatement in accordance with Generally Accepted Accounting Principles (GAAP). Now, be it resolved, that the City Council of the City of Fridley hereby approves and accepts the Comprehensive Annual Finance Report for the fiscal year ending December 31, 2025. Passed and adopted by the City Council of the City of Fridley this 8th day of June, 2026. _______________________________________ Dave Ostwald – Mayor Attest: ________________________________________ Melissa Moore – City Clerk Page 257 of 491 City of Fridley, Minnesota For year end FridleyMN.gov/233/City-Financials Page 258 of 491This page intentionally left blank Page 259 of 491Page 260 of 491This page intentionally left blank Page 261 of 491Page 262 of 491Page 263 of 491 CITY OF FRIDLEY, MINNESOTA ANNUAL COMPREHENSIVE FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2025 TABLE OF CONTENTS EXHIBIT PAGE III. STATISTICAL SECTION (Unaudited) Financial Trends: Net Position by Component Table 1 162 Changes in Net Position Table 2 164 Fund Balances - Governmental Funds Table 3 168 Changes in Fund Balances - Governmental Funds Table 4 170 Revenue Capacity: Tax Capacity Value and Estimated Market Value of Taxable Property Table 5 172 Direct and Overlapping Property Tax Capacity Rates Table 6 174 Principal Property Taxpayers Table 7 176 Property Tax Levies and Collections Table 8 177 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 178 Direct and Overlapping Governmental Activities Debt Table 10 180 Legal Debt Margin Information Table 11 181 Pledged Revenue Coverage Table 12 182 Demographic and Economic Information: Demographic and Economic Statistics Table 13 184 Principal Employers Table 14 185 Full-Time Equivalent City Government Employees by Function/Program Table 15 187 Operating Information: Operating Indicators by Function/Program Table 16 188 Capital Asset Statistics by Function/Program Table 17 190 Page 264 of 491This page intentionally left blank Page 265 of 4911 Page 266 of 491This page intentionally left blank 2 Page 267 of 491 Fridley Civic Campus 7071 University Ave N.E. Fridley, MN 55432 763-571-3450 | FAX: 763-571-1287 | FridleyMN.gov June 1, 2026 To the Citizens of the City of Fridley, Mayor and Council Members The Annual Comprehensive Financial Report (ACFR) of the City of Fridley, Minnesota (City), for the fiscal year ended December 31, 2025, is submitted herewith: Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. The City believes that the data, as presented, is accurate in all material aspects. The data 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 its various funds. All disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial activity have been included. Generally Accepted Accounting Principles (GAAP) require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A may be found immediately following the report of the independent auditors. All City funds, departments, commissions, and other organizations for which the City is financially accountable are presented within the ACFR. The City provides a full range of services to its citizens, including police and fire protection; water and sanitary sewer utilities; the construction and maintenance of streets and sidewalks; recreational facilities; commercial and residential real estate development coordination; and general administrative services. The Housing and Redevelopment Authority (HRA) is included in the reporting entity as a component unit of the City as the governing board is appointed by the City Council and because of the City’s financial relationship with the HRA. 3 Page 268 of 4914 Page 269 of 4915 Page 270 of 4916 Page 271 of 4917 Page 272 of 4918 Page 273 of 4919 Page 274 of 491This page intentionally left blank 10 Page 275 of 491Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Fridley Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2024 Executive Director/CEO 11 Page 276 of 491This page intentionally left blank 12 Page 277 of 49113 Page 278 of 491This page intentionally left blank 14 Page 279 of 491 City Manager Communications and City Attorney Engagement City Clerk's Office Community Parks and Employee Finance Public Safety Public Works Development Recreation Resources Building Parks and Facilities Accounting Police Inspections Recreation Management Springbrook Emergency Planning Assessing Engineering Nature Center Management Rental Information Fire Forestry Inspection Technology Municipal Liquor Utilities Parks Maintenance Streets Maintenance Fleet Services 15 Page 280 of 491This page intentionally left blank 16 Page 281 of 49117 Page 282 of 491This page intentionally left blank 18 Page 283 of 491 INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota Report on the Audit of the Financial Statements Opinions 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 Fridley, Minnesota, as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City of Fridley, Minnesota's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business- type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Fridley, Minnesota, as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Fridley, Minnesota and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal 19 Page 284 of 491 control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Fridley, Minnesota’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Governmental Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Fridley, Minnesota’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Fridley, Minnesota’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 20 Page 285 of 491 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedule, and the schedules of OPEB and pension information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board 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. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Fridley, Minnesota's basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other 21 Page 286 of 491 information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2026 on our consideration of the City of Fridley, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Fridley, Minnesota’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Fridley, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 1, 2026 22 Page 287 of 491 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Fridley (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2025. The City encourages readers to consider the information presented here in conjunction with additional information that we have furnished in the letter of transmittal, which can be found in the table of contents within this report. Financial Highlights The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $117,333,883 (net position). Of this amount, $42,454,590 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. $66,916,564 is the City’s net investment in capital assets, $5,566,172 is restricted for debt service, $1,076,320 is restricted for public safety aid, $292,211 is restricted for donations and special revenue funds. During 2025, the City’s total net position increased by $13,555,929. Of this amount, $13,147,727 is attributed to the capital investment through the City’s Park System Improvement Plan, with the largest project being Commons Park. Another factor was that the City received $5,344,437 in grant revenues which was higher than anticipated. Investment earnings also continue to increase as interest rates remained high in addition to a positive net change in the book value versus the fair value. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $45,656,422. This is a decrease of $8,662,818 which is mainly due to Capital expenditures from the approved Park System Improvement Plan, which were funded with General Obligation Tax Abatement bond proceeds issued, received and recognized in 2022. Of this total amount, $7,724,976, or 17% is restricted through legal restrictions or third–party agreements mainly for grants, debt service and capital projects. 23 Page 288 of 491Management’s Discussion and Analysis At the end of the current fiscal year, the General Fund balance of $14,500,535 included $164,359 in nonspendable for inventory and prepaids, $1,136,789 in restricted donations and aid, and $13,199,387 in unassigned fund balance. The City’s total debt decreased by $4,648,478 during the current fiscal year. Total debt outstanding at December 31, 2025, is $75,312,580. No new debt was issued in 2025. Subscription-based IT arrangements decreased by $130,814 and lease liabilities decreased by $263,027. In addition, compensated absences had a slight increase while all other debt decreased due to payments made during the year. Overview of the Financial Statements The discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise of three components: 1) government–wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government–wide financial statements. The government–wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resource, with the remainder reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes, and earned but unused vacation leave). Both of the government–wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (i.e., governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (i.e., business–type activities). The governmental activities of the City include general government, public safety, public works, community development, and parks and recreation. The business–type activities of the City include Liquor, Water, Sewer and Storm Water. 24 Page 289 of 491Management’s Discussion and Analysis The government–wide financial statements can be found on Exhibits A-1 and A-2 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds; proprietary funds; and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government–wide financial statements. However, unlike the government–wide financial statements, governmental fund financial statements focus on near–term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near–term financial requirements. Because the focus of governmental funds is narrower than that of the government–wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government– wide financial statement. By doing so, readers may better understand the long–term impact of the City's near term financial decisions. Both the expenditures and change in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains five individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General, Debt Service, Street Improvements, Community Investment, and Park Improvements, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non–major governmental funds is provided in the form of combining statements as referred to in the table of contents of this report. The City adopts an annual appropriated budget for its General Fund and four Special Revenue funds. A budgetary comparison statement has been provided for those funds to demonstrate compliance with this budget. 25 Page 290 of 491Management’s Discussion and Analysis The basic governmental fund financial statements can be found on Exhibits A-3 and A-4 of this report. Proprietary funds. The City maintains four enterprise funds and two internal service funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business–type activities in the government–wide financial statements. The City uses enterprise funds to account for its Liquor, Water, Sewer, and Storm Water operations. The City uses internal service funds to account for its Employee Benefits and Self Insurance. Because these services predominately benefit governmental rather than business–type functions, they have been included within governmental activities in the government–wide financial statements. Proprietary funds provide the same type of information as the government–wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Liquor, Water, Sewer, Storm Water and operations, all of which are considered to be major funds of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on Exhibits A-6 through A- 8 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. 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 statements can be found on Exhibits A-9 and A-10 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 as listed in the table of contents within this report. Other information. The combining statements referred to earlier in connection with the non–major governmental funds are presented immediately following the required supplementary information on budgetary comparisons. Combining and individual fund statements and schedules can be found in the table of contents within this report. 26 Page 291 of 491Management’s Discussion and Analysis Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $117,333,883 at the close of the most recent fiscal year. A significant portion of the City's net position ($66,916,564 or 57%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Fridley’s Net Position 27 Page 292 of 491Management’s Discussion and Analysis Net position was negatively impacted by $10,994,920 at December 31, 2025 due to pension–related amounts included in the above schedule related to the standard are as follows: A portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of $42,454,590 in unrestricted net position may be used to meet the City’s ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business–type activities. Governmental Activities Governmental activities increased the City’s net position by $7,487,750 Some of the largest factors contributing to this increase are a gain on investment earnings of $2,475,234 and an increase in net investments in capital assets in the amount of $5,552,346. 28 Page 293 of 491Management’s Discussion and Analysis City of Fridley’s Changes in Net Position 29 Page 294 of 491Management’s Discussion and Analysis Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: Governmental Activities - Expenses Interest on long- Parks and term debt General recreation 7% government 6% Community 21% development 4% Public works 22% Public safety 40% 30 Page 295 of 491Management’s Discussion and Analysis Business–Type Activities Business-type activities increased net position by $6,068,179 This increase is primarily due to positive cash flow in all four of the City’s Enterprise funds. In addition, federal grants being used for utility infrastructure equated to $1,234,383 with another $1,161,182 coming from State and Watershed grants. Business–Type Activities – Program Revenues vs Operating Expenses 31 Page 296 of 491Management’s Discussion and Analysis Financial Analysis of the Government's Funds Governmental funds. The focus of the City’s governmental funds is to provide information on near–term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $45,656,422. The General Fund’s fund balance increased by $725,587 in 2025. This was more than the $321,900, decrease anticipated fund balance with the 2025 amended budget. Revenue exceeded the amended budget by $201,844 largely due to investment income, which came in $538,495 over budget attributable to a continued high-rate environment which also led to an unrealized gain. The Debt Service Fund balance increased by $1,470 in 2025. No additional debt was issued and paydowns continued as expected. The Street Improvements Fund has an assigned fund balance of $1,109,053 and is identified as a major fund. The fund balance decreased by $406,101 in 2025. This fund has declined in balance due to the increasing cost of street projects. The need to raise additional revenue in this fund is a concern and the City is looking at various scenarios. The Community Investment Fund has a committed fund balance of $15,765,769 and is identified as a major fund. The fund balance increased $838,152. The increase in fund balance is primarily due to a $773,015 in investment earnings. A portion of this fund balance will be used beginning in 2026 to continue a City-wide parks improvement project once all of the bond proceeds dedicated to this have been spent. The Park Improvement Fund has a total Fund balance of $4,816,352. This is a decrease of $8,677,022 over the prior year. The main reason for this decrease is the spending down of the restricted balance for the General Obligation Tax Abatement bond proceeds for the approved Park System Improvement Plan which were issued received, received and recognized in 2022. The balance is now at $850,185, a decrease of $9,113,813 from 2024. The assigned fund balance of $3,931,281 is an increase of $401,905 over 2024. The majority of this increase came from investment earnings of $452,573. 32 Page 297 of 491Management’s Discussion and Analysis Non–major special revenue funds increased by $38,627 in 2025. The majority of this increase took place in the Springbrook Nature Center fund. Increased program revenue and a payment from Centerpoint for a land easement are reasons for the increase. Non–major capital project funds decreased by $1,183,531 in 2025. This decrease is primarily due to the Capital Equipment fund and the increasing costs associated with leasing vehicles and capital equipment purchases. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government–wide financial statements, but in more detail. The unrestricted net position in the respective proprietary funds is: Liquor, $1,786,270; Water, $9,151,667; Sewer, $7,910,756; and Storm Water, $5,751,518. The Liquor fund decreased in net position by $83,328. The decrease was primarily due to a shift in consumer behavior and reduction from pandemic levels.. The Water, Sewer, and Storm Water funds increased respectively in net position by $2,862,972, $973,215, and $2,112,921. The Water fund increase was due primarily to PFAS settlements received as well as increased investment income and 5% increase in utility rates. Sanitary and Storm Water increases were primarily due to rates increases respectively of 5.0% and 10%. The City is building up fund balance reserves due to increased infrastructure costs in the upcoming years. Budgetary Highlights General Fund The original revenue and expenditure budgets were both amended. The majority of these adjustments made were due to unanticipated revenues that helped to offset increased expenditures. Two significant adjustments were made. An amendment was made for both expenditure and revenues for tree removal grants in the amount of $345,000. Another budget amendment for $301,500 both expenditures and revenues was made related to additional local affordable housing aid which was received by the City and transferred to the HRA housing program fund for applicable programming. Operating expenditures in total were less than the final budgetary estimates by $508,143. This is largely due to vacancies in the City Manager’s, Public Safety and Community Development departments. Total revenues were greater than the final budgetary estimates by $201,844. This is largely due to investment income coming in over budget due to a continued positive interest rate environment. 33 Page 298 of 491 Management’s Discussion and Analysis Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business type activities as of December 31, 2025, amounts to $130,464,269 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements other than buildings, machinery and equipment, infrastructure, construction in progress, lease building, and lease vehicles. City of Fridley’s Capital Assets (Net of Depreciation) Additional information on the City’s capital assets can be found in Note 6. 34 Page 299 of 491Management’s Discussion and Analysis Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $69,615,000. This is a decrease of $3,740,000 from 2024. $38,630,000 is for General Obligation Improvement Debt, which is supported by special assessments and property tax levies. $10,370,000 is General Obligation Tax Increment Debt which is supported by tax increments. $18,750,000 is General Obligation Tax Abatement Bonds and $1,865,000 is General Obligation Utility Revenue Debt, which is financed by the respective Utility Fund. In addition, there is long–term debt in the amount of $1,519,520 for compensated absences, $2,588,738 of bond issuance premium/discount and $1,589,022 for lease liabilities and subscription-based IT arrangements. Additional information on the City’s long–term debt can be found in Note 7. City of Fridley’s Outstanding Debt General Obligation Improvement Bonds, General Obligation Equipment Certificates, General Obligation Revenue Bonds, the related premiums or discounts, and Compensated Absences are as follows: The City of Fridley has an Aa2 bond rating. State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of total Estimated Market Value. The current debt limitation for the City is $131,738,796. Only $38,630,000 of the City’s outstanding debt is counted within the statutory limitation because all other debt is either wholly or partially repaid by revenues other than general property tax levies. Requests for information. This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, 7071 University Avenue NE, Fridley, Minnesota 55432. 35 Page 300 of 491This page intentionally left blank 36 Page 301 of 49137 Page 302 of 491This page intentionally left blank 38 Page 303 of 491 Exhibit A-1 CITY OF FRIDLEY, MINNESOTA STATEMENT OF NET POSITION December 31, 2025 Primary Government Component Unit Housing & Governmental Business-Type Redevelopment Activities Activities Total Authority Assets: Cash and investments $45,016,191 $21,585,127 $66,601,318 $28,481,221 Receivables: Accounts 292,697 4,648,880 4,941,577 747,786 Taxes 395,640 - 395,640 27,189 Special assessments 1,613,692 2,054 1,615,746 - Mortgage - - - 5,261,889 Notes - - - 400,000 Interest 319,694 - 319,694 108,404 Due from component unit 553,077 - 553,077 - Due from other governments 3,424,041 1,273,377 4,697,418 - Internal balances 1,733,729 (1,733,729) - - Prepaid items 137,766 556,859 694,625 - Inventories - at cost 64,539 908,190 972,729 - Lease receivable 1,831,924 - 1,831,924 - Land held for resale - - - 704,780 Capital assets (net of accumulated depreciation and amortization): Land 5,692,954 699,047 6,392,001 1,011,755 Buildings and structures 42,773,404 4,440,707 47,214,111 - Improvements other than buildings 6,364,891 - 6,364,891 - Machinery and equipment 7,803,862 1,586,252 9,390,114 - Infrastructure 19,539,410 22,329,640 41,869,050 - Construction in progress 16,155,247 1,335,454 17,490,701 - Lease building - 381,299 381,299 - Lease vehicles 954,625 159,443 1,114,068 - Subscription-based IT arrangements 248,034 - 248,034 - Total assets 154,915,417 58,172,600 213,088,017 36,743,024 Deferred outflows of resources: Related to other post employment benefits 1,179,748 92,458 1,272,206 - Related to pensions 7,128,634 - 7,128,634 - Total deferred outflows of resources 8,308,382 92,458 8,400,840 - Liabilities: Due to primary government - - - 552,364 Accounts payable 634,840 622,652 1,257,492 1,137,735 Deposits payable 106,670 73 106,743 - Contracts payable 1,252,669 36,774 1,289,443 - Due to other governments 160,648 586,383 747,031 295,768 Salaries payable 1,055,922 124,817 1,180,739 - Accrued interest payable 1,038,063 15,880 1,053,943 - Unearned revenue 58,934 50,913 109,847 - Compensated absences payable: Due within one year 997,411 - 997,411 - Due in more than one year 522,409 - 522,409 - Other post employment benefits payable: Due within one year 79,499 - 79,499 - Due in more than one year 2,282,695 185,951 2,468,646 - Lease liability: Due within one year 302,011 196,436 498,447 - Due in more than one year 551,524 408,853 960,377 - Subscription-based IT arrangements liability: Due within one year 130,198 - 130,198 - Bonds payable: Due within one year 3,620,000 295,000 3,915,000 - Due in more than one year 66,657,580 1,631,158 68,288,738 - Net pension liability: Due in more than one year 7,870,341 - 7,870,341 - Total liabilities 87,321,414 4,154,890 91,476,304 1,985,867 Deferred inflows of resources: Related to leases 1,831,924 - 1,831,924 - Related to other post employment benefits 550,219 43,314 593,533 - Related to pensions 10,253,213 - 10,253,213 - Total deferred inflows of resources 12,635,356 43,314 12,678,670 - Net position: Net investment in capital assets 38,552,943 28,363,621 66,916,564 1,011,755 Restricted for: Debt service 5,566,172 - 5,566,172 - Tax increment purposes - - - 12,020,920 Police forfeitures 84,440 - 84,440 - Public safety 1,076,320 - 1,076,320 - Cable television equipment 147,302 - 147,302 - Donations 60,469 - 60,469 - Capital improvements - water quality - 1,028,026 1,028,026 - Housing and redevelopment - - - 336,094 Unrestricted 17,779,383 24,675,207 42,454,590 21,388,388 Total net position $63,267,029 $54,066,854 $117,333,883 $34,757,157 The accompanying notes are an integral part of these financial statements. 39 Page 304 of 49140 Page 305 of 49141 Page 306 of 49142 Page 307 of 49143 Page 308 of 491 CITY OF FRIDLEY, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For The Year Ended December 31, 2025 Street General Debt Service Improvements Revenues: Taxes $15,670,877 $4,765,286 $ - Special assessments 37,797 - 508,200 Licenses and permits 1,170,655 - - Intergovernmental revenue 3,638,333 - 4,039,524 Charges for services 2,834,411 - - Reimbursements - - - Fines and forfeits 149,546 - - Investment income (loss) 763,495 135,909 (11,606) Contributions and donations 21,560 - - Payment from component unit - 1,132,288 - Interest on loan - - - Miscellaneous: Other 367,070 - - Total revenues 24,653,744 6,033,483 4,536,118 Expenditures: Current: General government 5,145,654 - - Public safety 12,254,082 - - Public works 4,459,100 - 27,595 Community development 1,354,374 - - Parks and recreation 944,943 - - Capital outlay - - 4,959,624 Debt service: Principal 98,010 3,450,000 - Interest and other charges 9,494 2,582,013 - Total expenditures 24,265,657 6,032,013 4,987,219 Excess (deficiency) of revenues over (under) expenditures 388,087 1,470 (451,101) Other financing sources (uses): Proceeds from sale of capital assets - - - Lease issuance - - - Transfers in 582,500 - 245,000 Transfers out (245,000) - (200,000) Total other financing sources (uses) 337,500 - 45,000 Net change in fund balance 725,587 1,470 (406,101) Fund balance - January 1 13,774,948 5,504,790 1,515,154 Fund balance - December 31 $14,500,535 $5,506,260 $1,109,053 The accompanying notes are an integral part of these financial statements. 44 Page 309 of 491 Exhibit A-4 Other Totals Community Park Governmental Intra-Activity Governmental Investment Improvements Funds Eliminations Funds $139 $ - $655,797 $ - $21,092,099 310 - 83,713 - 630,020 - - 134,268 - 1,304,923 - 1,468,618 1,533,915 - 10,680,390 - - 712,399 - 3,546,810 - - 219,327 - 219,327 - - 32,570 - 182,116 773,015 452,573 197,852 - 2,311,238 - - 47,036 - 68,596 - - - - 1,132,288 67,483 - - - 67,483 - - 128,178 - 495,248 840,947 1,921,191 3,745,055 - 41,730,538 2,795 - 1,367,582 - 6,516,031 - - 276,391 - 12,530,473 - - 43,621 - 4,530,316 - - 7,212 - 1,361,586 - 61,549 790,205 - 1,796,697 - 10,382,664 2,479,080 - 17,821,368 - - 318,384 - 3,866,394 - - 80,138 - 2,671,645 2,795 10,444,213 5,362,613 - 51,094,510 838,152 (8,523,022) (1,617,558) - (9,363,972) - - 68,967 - 68,967 - - 203,687 - 203,687 - - 200,000 (599,000) 428,500 - (154,000) - 599,000 - 0 (154,000) 472,654 - 701,154 838,152 (8,677,022) (1,144,904) - (8,662,818) 14,927,617 13,493,374 5,103,357 - 54,319,240 $15,765,769 $4,816,352 $3,958,453 $ - $45,656,422 The accompanying notes are an integral part of these financial statements. 45 Page 310 of 491This page intentionally left blank 46 Page 311 of 49147 Page 312 of 491 CITY OF FRIDLEY, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2025 Business-Type Activities - Enterprise Funds Assets: Liquor Water Current assets: Cash and investments $1,440,094 $10,302,096 Accounts receivable - 2,025,646 Special assessments receivable - 2,054 Due from other governments - 66,843 Prepaid items - 10,821 Inventories - at cost 866,972 41,218 Total current assets 2,307,066 12,448,678 Noncurrent assets: Capital assets: Land 151,946 147,485 Buildings and structures 518,944 8,318,586 Machinery and equipment 388,692 3,523,206 Infrastructure - 24,679,190 Construction in process - 433,889 Lease building 919,604 - Lease vehicles - 144,606 Total capital assets 1,979,186 37,246,962 Less: Allowance for depreciation and amortization (1,214,334) (22,973,561) Net capital assets 764,852 14,273,401 Total assets 3,071,918 26,722,079 Deferred outflows of resources: Related to pensions - - Related to other post employment benefits 20,714 32,717 Total deferred outflows of resources 20,714 32,717 Liabilities: Current liabilities: Accounts payable 332,803 240,140 Deposits payable 73 - Accrued interest payable - 15,880 Contracts payable - - Due to other governments 66,388 194,205 Due to other funds - 1,733,725 Salaries payable 39,968 36,619 Payroll deductions payable - - Compensated absences - current - - Lease liability - current 147,230 27,424 Bonds payable - current - 295,000 Unearned revenue 50,913 - Total current liabilities 637,375 2,542,993 Noncurrent liabilities: Other post employment benefits 41,661 65,805 Compensated absences - noncurrent - - Lease liability - noncurrent 291,829 74,887 Bonds payable - noncurrent - 1,631,158 Net pension liability - - Total noncurrent liabilities 333,490 1,771,850 Total liabilities 970,865 4,314,843 Deferred inflows of resources: Related to pensions - - Related to other post employment benefits 9,704 15,328 Total deferred inflows of resources 9,704 15,328 Net position: Net investment in capital assets 325,793 12,244,932 Restricted - 1,028,026 Unrestricted 1,786,270 9,151,667 Total net position $2,112,063 $22,424,625 Net position reported above Adjustment to report the cumulative internal balance for the net effect activity between the internal service fund and the enterprise funds over time Net position of business-type activities (Exhibit A-1) The accompanying notes are an integral part of these financial statements. 48 Page 313 of 491 Exhibit A-6 Business-Type Activities - Enterprise Funds Governmental Activities - Sewer Storm Water Total Internal Service Funds $5,691,420 $4,151,517 $21,585,127 $2,978,802 2,098,118 525,116 4,648,880 - - - 2,054 - 22,228 1,184,306 1,273,377 - 546,038 - 556,859 - - - 908,190 - 8,357,804 5,860,939 28,974,487 2,978,802 22,800 376,816 699,047 - 903,244 - 9,740,774 - 1,291,541 690,097 5,893,536 - 12,879,680 17,320,822 54,879,692 - 901,565 - 1,335,454 - - - 919,604 - 108,342 - 252,948 - 16,107,172 18,387,735 73,721,055 - (10,239,484) (8,361,834) (42,789,213) - 5,867,688 10,025,901 30,931,842 - 14,225,492 15,886,840 59,906,329 2,978,802 - - - 7,128,634 16,376 22,651 92,458 - 16,376 22,651 92,458 7,128,634 39,069 10,640 622,652 1,899 - - 73 - - - 15,880 - 36,774 - 36,774 - 319,602 6,188 586,383 - 45,000 30,000 1,808,725 - 19,146 29,084 124,817 - - - - 148,784 - - - 997,411 21,782 - 196,436 - - - 295,000 - - - 50,913 - 481,373 75,912 3,737,653 1,148,094 32,935 45,550 185,951 - - - - 522,409 42,137 - 408,853 - - - 1,631,158 - - - - 7,870,341 75,072 45,550 2,225,962 8,392,750 556,445 121,462 5,963,615 9,540,844 - - - 10,253,213 7,672 10,610 43,314 - 7,672 10,610 43,314 10,253,213 5,766,995 10,025,901 28,363,621 - - - 1,028,026 - 7,910,756 5,751,518 24,600,211 (9,686,621) $13,677,751 $15,777,419 $53,991,858 ($9,686,621) $53,991,858 74,996 $54,066,854 The accompanying notes are an integral part of these financial statements. 49 Page 314 of 491 CITY OF FRIDLEY, MINNESOTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For The Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds Liquor Water Sales $5,839,593 $ - Cost of sales (4,149,416) - Gross profit 1,690,177 - Operating revenues: Customer billings - 4,647,249 Charges for services - - Other revenues 405 Total operating revenues 405 4,647,249 Total gross profit and operating revenues 1,690,582 4,647,249 Operating expenses: Personnel services 754,288 907,753 Supplies and other charges: Disposal charges - - Other 480,810 1,518,127 Depreciation and amortization 187,973 1,082,608 Total operating expenses 1,423,071 3,508,488 Operating income (loss) 267,511 1,138,761 Nonoperating revenues (expenses): Intergovernmental revenue - - Investment income (loss) 65,996 566,232 Settlement proceeds - 1,028,026 Insurance reimbursement - - Interest and fiscal charges (28,335) (98,460) Gain (loss) on sale of capital assets - 14,074 Total nonoperating revenues (expenses) 37,661 1,509,872 Income (loss) before transfers and capital contributions 305,172 2,648,633 Transfers and capital contributions: Transfers out (388,500) (40,000) Capital contributions - 254,339 Total transfers and contributions (388,500) 214,339 Change in net position (83,328) 2,862,972 Net position - January 1 2,195,391 19,561,653 Net position - December 31 $2,112,063 $22,424,625 Changes in net position reported above Adjustment to report the cumulative internal balance for the net effect of activity between the internal service funds and the enterprise funds over time. Changes in net position of business-type activities (Exhibit A-2) The accompanying notes are an integral part of these financial statements. 50 Page 315 of 491 Exhibit A-7 Business-Type Activities - Enterprise Funds Governmental Activities - Sewer Storm Water Total Internal Service Funds $ - $ - $5,839,593 $ - - - (4,149,416) - - - 1,690,177 - 7,941,954 2,348,455 14,937,658 - - - - 2,278,666 - - 405 - 7,941,954 2,348,455 14,938,063 2,278,666 7,941,954 2,348,455 16,628,240 2,278,666 514,458 711,784 2,888,283 1,161,763 5,827,809 - 5,827,809 - 698,492 438,673 3,136,102 370,937 488,174 458,847 2,217,602 - 7,528,933 1,609,304 14,069,796 1,532,700 413,021 739,151 2,558,444 745,966 207,643 - 207,643 102,157 340,285 261,870 1,234,383 163,996 - - 1,028,026 - - - - 32,818 (7,684) (1,300) (135,779) - 19,950 - 34,024 (44,362) 560,194 260,570 2,368,297 254,609 973,215 999,721 4,926,741 1,000,575 - - (428,500) - - 1,113,200 1,367,539 - - 1,113,200 939,039 - 973,215 2,112,921 5,865,780 1,000,575 12,704,536 13,664,498 48,126,078 (10,687,196) $13,677,751 $15,777,419 $53,991,858 ($9,686,621) $5,865,780 202,399 $6,068,179 The accompanying notes are an integral part of these financial statements. 51 Page 316 of 491 CITY OF FRIDLEY, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For The Year Ended December 31, 2025 Business-Type Activities - Enterprise Funds Liquor Water Cash flows from operating activities: Receipts from customers and users $5,850,299 $4,691,499 Receipts from interfund services provided - - Payment to suppliers (4,651,391) (1,425,794) Payment to employees (747,634) (903,438) Net cash flows from operating activities 451,274 2,362,267 Cash flows from noncapital financing activities: Intergovernmental revenue - - Transfers out (388,500) (40,000) Net cash flows from noncapital financing activities (388,500) (40,000) Cash flows from capital and related financing activities: Acquisition of capital assets (76,988) (999,399) Proceeds from sale of capital assets - 14,074 Proceeds from settlement - 724,340 Capital grants and contributions - 367,165 Principal received on special assessments - 19,445 Insurance reimbursement - - Principal paid on revenue bonds - (290,000) Principal paid on leases (139,369) (21,599) Repayment on interfund loan - (519,047) Interest and paying agent fees on long-term liabilities (28,335) (112,714) Net cash flows from capital and related financing activities (244,692) (817,735) Cash flows from investing activities: Investment income (loss) 65,996 566,232 Net increase (decrease) in cash and cash equivalents (115,922) 2,070,764 Cash and cash equivalents - January 1 1,556,016 8,231,332 Cash and cash equivalents - December 31 $1,440,094 $10,302,096 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $267,511 $1,138,761 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation and amortization 187,973 1,082,608 Changes in assets and liabilities: Decrease (increase) in receivables - 44,250 Decrease (increase) in prepaid items - (10,821) Decrease (increase) in inventories 61,493 29,843 Decrease (increase) in deferred outflows of resources 5,965 9,132 Increase (decrease) in payables (83,788) 65,536 Increase (decrease) in unearned revenue 10,301 - Increase (decrease) in deferred inflows of resources 1,819 2,958 Total adjustments 183,763 1,223,506 Net cash provided (used) by operating activities $451,274 $2,362,267 Noncash investing and financing activities Capital assets acquired through contracts payable $0 $0 Capital assets acquired through lease liability $0 $34,635 The accompanying notes are an integral part of these financial statements. 52 Page 317 of 491 Exhibit A-8 Business-Type Activities - Enterprise Funds Governmental Activities - Sewer Storm Water Total Internal Service Funds $7,857,942 $2,595,069 $20,994,809 $ - - - - 2,279,406 (6,596,032) (436,724) (13,109,941) (370,390) (512,404) (707,707) (2,871,183) (1,883,230) 749,506 1,450,638 5,013,685 25,786 - - - 102,157 - - (428,500) - - - (428,500) 102,157 (1,000,235) (1,766,801) (3,843,423) (44,362) 19,950 - 34,024 - - - 724,340 9,851 341,198 718,214 - - - 19,445 - - - - 32,818 - - (290,000) - (20,155) - (181,123) - (45,000) (35,000) (599,047) - (7,684) (1,300) (150,033) - (1,043,273) (1,461,903) (3,567,603) (11,544) 340,285 261,870 1,234,383 163,996 46,518 250,605 2,251,965 280,395 5,644,902 3,900,912 19,333,162 2,698,407 $5,691,420 $4,151,517 $21,585,127 $2,978,802 $413,021 $739,151 $2,558,444 $745,966 488,174 458,847 2,217,602 - (84,012) 246,614 206,852 740 (62,293) - (73,114) - - - 91,336 - 4,652 6,764 26,513 1,976,239 (11,492) (2,655) (32,399) (924,132) - - 10,301 - 1,456 1,917 8,150 (1,773,027) 336,485 711,487 2,455,241 (720,180) $749,506 $1,450,638 $5,013,685 $25,786 $36,774 $0 $36,774 $0 $0 $0 $34,635 $0 The accompanying notes are an integral part of these financial statements. 53 Page 318 of 49154 Page 319 of 49155 Page 320 of 491This page intentionally left blank 56 Page 321 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 H. Property Tax Revenue Recognition The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers in full on May 15 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Government-Wide Financial Statements The City recognizes property tax revenue in the period for which the taxes were levied. Uncollectible property taxes are not material and have not been reported. Governmental Fund Financial Statements The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes and credits not received at year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources because they are not available to finance current expenditures. I. Special Assessment Revenue Recognition Special assessments are levied against the benefited properties for the assessable costs of special assessment improvement projects in accordance with State Statutes. The City usually adopts the assessment rolls when the individual projects are complete or substantially complete. The assessments are collectible over a term of years generally consistent with the term of years of the related bond issue. Collection of annual installments (including interest) is handled by the County in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale. Proceeds of sales from tax forfeit properties are remitted to the City in payment of delinquent special assessments. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. 62 Page 327 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 Government-Wide Financial Statements The City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. Governmental Fund Financial Statements Revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments that are collected by the County by December 31 (remitted to the City the following January) are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflows of resources. J. Inventories Governmental Funds Inventories of the general fund are stated at cost, which approximates market, using the first-in, first-out (FIFO) method. The primary government does not maintain material amounts of inventory within the other governmental funds. Inventories of the other governmental funds are recorded as expenditures at the time of purchase. Proprietary Funds Liquor fund inventories are valued on the average cost basis. Other proprietary funds inventory items are expensed at the time they are sold or used (consumption method). K. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. L. Lease Receivable The City's lease receivable is measured at the present value of lease payments expected to be received during the lease term. Under the lease agreement, the City may receive variable lease payments that are dependent upon the lessee's revenue/the lessee's usage levels. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the commencement of the lease in an amount equal to the initial recording of the lease receivable and is recognized as revenue over the lease term. 63 Page 328 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 M. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), and intangible assets such as easements are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of two years and an initial cost of more than the following: Capitalization Threshold Land $1 Buildings and structures $25,000 Improvements other than buildings $25,000 Machinery and equipment $10,000 Infrastructure $50,000 Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition value at the date of donation. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities) the City chose to include all such items regardless of their acquisition date or amount. The City was able to estimate the historical cost for the initial reporting of these assets through back-trending (i.e. estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost of the infrastructure to be capitalized to the acquisition year or estimated acquisition year). 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. Property, plant and equipment of the primary government, and the component units, are depreciated using the straight line method over the following estimated useful lives: Assets Buildings and structures 10 – 40 years Improvements other than buildings 10 – 20 years Machinery and equipment 3 – 25 years Infrastructure 15 – 50 years The right-to-use assets (lease buildings and equipment) and right-to-use subscription-based IT arrangements are measured at an amount equal to the initial measurement of the related lease/subscription-based IT arrangement liability plus any payments made prior to the agreement term, less incentives, plus any ancillary charges necessary to place the lease or arrangement into service. The right-to-use lease and right-to-use subscription-based IT arrangements assets are amortized on a straight-line basis over the life of the related lease/arrangement. 64 Page 329 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 4. Lease Receivable The City leases a portion of city owned sites for antenna rentals as follows: Estimated Estimated Range of Monthly Tower Leases Ending Term * Payments During Lease Term Annual Adjustment Escalator Dish Wireless - Commons Tower #1 5/1/2033 $2,000 - $3,103 5% every 5 years AT&T - Marion Hills 7/1/2025** $3,374 - $3,906 Greater of 5% or CPI-U AT&T - Public Works Garage 11/30/2028 $3,759 - $5,037 Greater of 5% or CPI-U T-Mobile - Marion Hills 6/17/2032 $3,039 - $3,705 Greater of 2% or CPI-U up to 5% T-Mobile - Commons Tower #1 7/17/2045 $3,098 - $4,697 Greater of 2% or CPI-U up to 5% Verizon - Commons Tower #1 6/30/2033 $3,610 - $5,147 Greater of 5% or CPI-U Verizon - TH65 Tower #2 2/13/2034 $3,610 - $5,147 Greater of 5% or CPI-U * This is the period covered in which the lessor believes it is reasonably certain that the lease will be extended through. ** Lease terminated in 2025 as expected. The leases are measured at the present value of the future minimum lease payments expected to be received during the lease term at a discount rate of 5.50% which is based on the rate available to finance acquisitions over the same period. At December 31, 2025, the City recorded $1,831,924 in leases receivables and deferred inflows of resources for these arrangements. Total revenue recognized in relation to these leases is as follows: Amortization of lease-related deferred inflows: Antenna site leases $163,600 Interest Revenue 105,562 Total revenue recognized in relation to lease assets $269,162 72 Page 337 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 5. Unavailable Revenues Governmental funds report deferred inflows of resources in connection with receivables that are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the various components of unavailable revenue reported in the governmental funds were as follows: Property Special Taxes Assessments Total Major funds: General $191,366 $156,559 $347,925 Debt Service 59,912 - 59,912 Street Improvements - 1,358,372 1 ,358,372 Community Investment 145 93 2 38 Park Improvements 133 - 1 33 Nonmajor 7,504 97,754 105,258 Total unavailable revenue - Primary Government $259,060 $1,612,778 $1,871,838 Property Notes Land held Taxes Receivable for Resale Total Major funds: General $9,522 $400,000 $621,120 $1,030,642 BAE Northern Stacks 64 - - 64 Holly Center 17 - - 17 Nonmajor 9,184 - 83,660 92,844 Total unavailable revenue - HRA Component Unit $18,787 $400,000 $704,780 $1,123,567 73 Page 338 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 6. Capital and Right-to-Use Lease Assets Capital asset, right-to-use lease asset, and right-to-use subscription-based IT arrangements activity for the year ended December 31, 2025 was as follows: Beginning Ending Primary Government Balance Increases Decreases Balance Governmental activities: Capital assets, not being depreciated or amortized: Land $5,692,954 $ - $ - $5,692,954 Construction in progress 3,007,520 13,950,396 (802,669) 16,155,247 Total capital assets, not being depreciated or amortized 8,700,474 13,950,396 (802,669) 21,848,201 Capital assets, being depreciated and amortized: Buildings and structures 58,834,616 653,153 (130,930) 59,356,839 Machinery and equipment 17,843,930 2,078,023 (715,025) 19,206,928 Improvements 8,594,000 1,185,543 (269,895) 9,509,648 Infrastructure 44,814,503 500,141 (288,065) 45,026,579 Lease vehicles 1,315,352 295,093 - 1,610,445 Subscription-based IT arrangements 558,971 - - 558,971 Total capital assets, being depreciated and amortized 131,961,372 4,711,953 (1,403,915) 135,269,410 Less accumulated depreciation and amortization for: Buildings and structures 14,386,243 2,328,122 (130,930) 16,583,435 Machinery and equipment 10,491,017 1,608,183 (696,134) 11,403,066 Improvements 2,982,387 432,265 (269,895) 3,144,757 Infrastructure 24,279,164 1,496,070 (288,065) 25,487,169 Lease vehicles 312,778 343,042 - 655,820 Subscription-based IT arrangements 140,076 170,861 - 310,937 Total accumulated depreciation and amortization 52,591,665 6,378,543 (1,385,024) 57,585,184 Total capital assets being depreciated and amortized - net 79,369,707 (1,666,590) (18,891) 77,684,226 Governmental activities capital assets - net $88,070,181 $12,283,806 ($821,560) $99,532,427 74 Page 339 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 Ending Ending Primary Government Balance Increases Decreases Balance Business-type activities: Capital assets, not being depreciated or amortized: Land $699,047 $ - $ - $699,047 Construction in progress 486,791 1,037,463 (188,800) 1,335,454 Total capital assets, not being depreciated or amortized 1,185,838 1,037,463 (188,800) 2,034,501 Capital assets, being depreciated and amortized: Buildings and structures 9,784,339 - (43,565) 9,740,774 Machinery and equipment 5,524,230 530,084 (160,778) 5,893,536 Infrastructure 52,703,011 2,382,414 (205,733) 54,879,692 Lease buildings 919,604 - - 919,604 Lease vehicles 218,313 34,635 - 252,948 Total capital assets, being depreciated and amortized 69,149,497 2,947,133 (410,076) 71,686,554 Less accumulated depreciation and amortization for: Buildings and structures 4,888,926 454,706 (43,565) 5,300,067 Machinery and equipment 4,153,414 314,648 (160,778) 4,307,284 Infrastructure 31,487,508 1,268,277 (205,733) 32,550,052 Lease buildings 403,729 134,576 - 538,305 Lease vehicles 48,110 45,395 - 93,505 Total accumulated depreciation and amortization 40,981,687 2,217,602 (410,076) 42,789,213 Total capital assets being depreciated and amortized - net 28,167,810 729,531 0 28,897,341 Business-type activities capital assets - net $29,353,648 $1,766,994 ($188,800) $30,931,842 Component Unit Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land $1,011,755 $ - $ - $1,011,755 The City has recorded right-to-use lease assets for building space and vehicle leases. The City has recorded right-to-use subscription-based IT arrangement assets. The related leases and arrangements are discussed in the long-term liabilities footnote disclosure. 75 Page 340 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 Depreciation and amortization expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $1,037,974 Public safety 1,506,481 Public works, including depreciation of general infrastructure assets 3,398,652 Community development 3,929 Parks and recreation 431,507 Total - governmental activities $6,378,543 Business-type activities: Liquor $187,973 Water 1,082,608 Sewer 488,174 Storm water 458,847 Total - business-type activities $2,217,602 76 Page 341 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 7. Long-Term Liabilities The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. The reporting entity’s long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities. As of December 31, 2025, the long-term bonded debt of the City consisted of the following: Governmental Activities: $49,130,000 General Obligation Improvement Bonds, Series 2017A due in varying annual installments of $1,060,000 - $2,925,000 through February 1, 2042; interest at 3.00% - 5.00% $38,630,000 $9,510,000 General Obligation Tax Increment Bonds, Series 2019A due in varying annual installments of $930,000- $1,150,000 beginning February 1, 2027 through February 1, 2035; interest at 2.125% - 5.00% 9,510,000 $4,540,000 General Obligation Tax Increment Bonds, Series 2020A due in varying annual installments of $630,000- $860,000 beginning February 1, 2021 through February 1, 2026; interest at 5.00% 860,000 $20,730,000 General Obligation Tax Abatement bonds, Series 2022A due in varying installments of $965,000 - $1,855,000, beginning February 1, 2024 through February 1, 2038; interest at 4.00% - 5.00% 18,750,000 Unamortized premium 2,527,580 Subtotal governmental activities 70,277,580 Business-Type Activities: $5,995,000 General Obligation Water Revenue Bonds of 2016A due in varying annual installments of $275,000 - $575,000 through February 1, 2031; interest at 2.00% - 2.25% 1,865,000 Unamortized premium 61,158 Subtotal business-type activities 1,926,158 Total primary government $72,203,738 On October 3, 2025, the City entered into a project loan agreement with the Minnesota Public Facilities Authority – the G.O. Water Revenue Note of 2025A. The agreement provides for a loan up to $2,938,350 to fund water treatment capital improvements. The loan will be disbursed to the City only when disbursement requests are submitted to the Authority and disbursement requests must be for eligible costs. The City has until June 30, 2029 to request loan disbursements and is not obligated to draw the full amount of the loan. As of December 31, 2025, no loan proceeds had been requested by or disbursed to the City. 77 Page 342 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 Long-term liability activity for the year ended December 31, 2025 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: G.O. improvement bonds $40,245,000 $ - ($1,615,000) $38,630,000 $1,695,000 G.O. tax increment bonds 11,190,000 - (820,000) 10,370,000 860,000 G.O. tax abatement bonds 19,765,000 - (1,015,000) 18,750,000 1,065,000 Total bonds payable 71,200,000 0 (3,450,000) 67,750,000 3,620,000 Bond issuance premium/discount 2,826,693 - (299,113) 2,527,580 - Lease liability - vehicles 935,438 203,687 (285,590) 853,535 302,011 Subscription-based IT arrangements liability 261,012 - (130,814) 130,198 130,198 Compensated absences** 1,371,242 148,578 - 1,519,820 997,411 Total governmental activities long-term debt $76,594,385 $352,265 ($4,165,517) $72,781,133 $5,049,620 Business-type activities: Bonds payable: G.O. revenue bonds $2,155,000 $ - ($290,000) $1,865,000 $295,000 Bond issuance premium/discount 72,995 - (11,837) 61,158 - Lease liability - building 578,429 - (139,370) 439,059 147,230 Lease liability - vehicles 174,957 33,027 (41,754) 166,230 49,206 Total business-type activities long-term debt $2,981,381 $33,027 ($482,961) $2,531,447 $491,436 **The change in compensated absences is presented at the net amount. All long-term bonded indebtedness outstanding at December 31, 2025 is backed by the full faith and credit of the City, including improvement and revenue bond issues. Delinquent assessments receivable at December 31, 2025 totaled $20,256. Revenues Pledged Future revenue pledged for the payment of long-term debt is as follows: Revenue Pledged Current Year Percent of Debt Service Remaining Principal Pledged Use of Total as a % of Term of Principal and Interest Revenue Bond Issue Proceeds Type Debt Service Net Revenues Pledge and Interest Paid Received 2022A Park Improvements Property Taxes 100% - 2020- $24,679,025 $1,907,825 $1,888,673 2038 2020A Housing Redevelopment Tax Increment 100% 100.0% 2020- 881,500 883,500 883,500 2026 2019A Housing Redevelopment Tax Increment 100% 100.0% 2020- 10,715,629 248,788 248,788 2035 2017A Building Improvements Property Taxes 100% 95.06% 2017- 50,803,513 2,987,488 2,876,613 2042 2016A Water Revenue Bonds Infrastructure Improvements Water Customer 100% 12.88% 2016- 1,983,518 331,012 5,675,275 Net Revenue 2031 80 Page 345 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 Police and Fire Fund Changes in Actuarial Assumptions: Assumed rates of salary increases were reduced slightly. Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. Continued use of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. Percent married assumption for female retirees lowered from 70% to 65%. Minor changes were made to form of payment assumptions for retirees. Minor changes were made to assumptions made with respect to missing participant data. The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. Changes in Plan Provisions: The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). The January 1, 2026 benefit increase changed from 1.00% to 3.00%; subsequent January 1 increases will be 1.00%. The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90% funded for both PERA Police and Fire and MSRS State Patrol for three consecutive years to 100% funded for both PERA Police and Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long- term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 33.5% 5.10% International equity 16.5% 5.30% Fixed income 25.0% 0.75% Private markets 25.0% 5.90% Total 100% 87 Page 352 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 $79,499 reported as deferred outflows of resources related to OPEB resulting from City contributions after the measurement date will be recognized as a reduction of the OPEB liability in the year ended December 31, 2026. Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended OPEB December 31, Expense 2026 $148,142 2027 112,616 2028 93,946 2029 110,200 2030 110,196 Thereafter 24,074 The OPEB liability will be liquidated by the General, Water, Sewer, Storm Water and Liquor funds. 12. Interfund Receivables, Payables and Transfers Interfund payables and receivables are representative of lending/borrowing arrangements to cover deficit cash balances (unless otherwise indicated below) at the end of the fiscal year. Interfund receivables and payables of the City are as follows: Interfund Interfund Receivables Payables Due From/Due To: Major Funds: General Fund $81,693 $ - Community Investment (1) (2) 1,808,725 - Water (1) (2) - 1,733,725 Sewer (2) - 45,000 Storm Water (2) - 30,000 Nonmajor Fund: Police Activity - 29,476 Special Assessment Construction Capital Projects - 52,217 Total $1,890,418 $1,890,418 (1) Interfund loan from Community Investment Fund to Water Fund to support capital costs related to the Locke Park Water Treatment Improvement Project Balance was $1,568,726 at December 31, 2025. (2) Interfund loan from Community Investment Fund to Water, Sewer, and Storm Water Funds to pay off the 2010A revenue bond to save on interest expense. Balance is $240,000 at December 31, 2025. 93 Page 358 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 Interfund receivables and payables of the HRA component unit at December 31, 2025 are as follows: Interfund Interfund Receivables Payables Due From/Due To: Major Funds: General Fund $6,440,891 $ - Gateway Northeast - 444,692 BAE Hazardous Sub District - 1,939,104 Locke Point Park - 3,995,124 Nonmajor Governmental Funds: Gateway West - 55,607 Moon Plaza - 6,364 Total $6,440,891 $6,440,891 The above balances are not expected to be eliminated within one year of December 31, 2025. Interfund Transfers: Transfer In Transfer Out Governmental Funds: Major Funds: General Fund (1) (2) (3) (4) (5) $582,500 $245,000 Street Improvements (1) (2) 245,000 200,000 Park Improvements (3) - 154,000 Nonmajor Governmental Funds: Capital Equipment (6) 200,000 - Total governmental funds 1,027,500 599,000 Proprietary Funds: Liquor (5) (6) - 388,500 Water (4) - 40,000 Total proprietary funds 0 428,500 Total $1,027,500 $1,027,500 (1) Transfer of $245,000 from General Fund to Street Improvements Fund to finance capital projects. (2) Transfer of $200,000 from Street Improvements Fund to General Fund to finance General Fund street expenses. (3) Transfer of $154,000 from the Park Improvements Fund to the General Fund to cover employee time spent on park improvements (4) Transfer of $40,000 from Water Fund to General Fund to cover employee time from utility projects. (5) Budgeted transfer of $188,500 from Liquor Fund to General Fund. (6) Budgeted transfer of $200,000 from Liquor Fund to capital equipment purchases. 94 Page 359 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 14. Tax Increment Districts The HRA is the administering authority for the following Tax Increment Districts: Fiscal Retained Year Tax Capacity Values Disparity By Established District District Name Current Original Captured Adjustments Authority 2007 18 Gateway West $61,215 $4,430 $56,785 $ - $56,785 2013 20 TIF 20 HSS 20A 2,717,961 276,688 2,441,273 - 2,441,273 2009 21 Gateway Northeast 624,866 28,419 596,447 - 596,447 2013 22 Northstar Transit Station 2,029,951 513,177 1,516,774 - 1,516,774 2018 23 Locke Point Park 331,709 60,918 270,791 - 270,791 2018 24 Northern Stacks VIII 235,744 115,566 120,178 - 120,178 2023 25 Holly Center 621,588 70,449 551,139 - 551,139 2023 26 Moon Plaza 342,920 29,569 313,351 - 313,351 2017 HR1/V5 Housing Replacement 3,305 208 3,097 - 3,097 1995 HR1/V6 Housing Replacement 6,697 316 6,381 - 6,381 1995 HR1/V9 Housing Replacement 3,428 286 3,142 - 3,142 1995 HR1/W1 Housing Replacement 3,024 357 2,667 - 2,667 1995 HR1/W2 Housing Replacement 3,005 286 2,719 - 2,719 1995 HR1/W6 Housing Replacement 10,412 516 9,896 - 9,896 1995 HR1/W7 Housing Replacement 3,544 170 3,374 - 3,374 1995 HR1/X8 Housing Replacement 7,265 503 6,762 - 6,762 2017 HR1/X9 Housing Replacement 4 ,238 164 4,074 - 4,074 1995 HR1/Y1 Housing Replacement 3 ,475 201 3,274 - 3,274 1995 HR1/Y2 Housing Replacement 3 ,614 181 3,433 - 3,433 2015 HR1/Y4 Housing Replacement 4 ,011 328 3,683 - 3,683 2017 HR1/Y5 Housing Replacement 3 ,813 251 3,562 - 3,562 2020 HR1/AA5 Housing Replacement 3 ,902 295 3,607 - 3,607 2020 HR1/AA7 Housing Replacement 4 ,141 299 3,842 - 3,842 2021 HR1/BB3 Housing Replacement 4 ,585 547 4,038 - 4,038 2021 HR1/BB4 Housing Replacement 4 ,212 350 3,862 - 3,862 Totals $7,042,625 $1,104,474 $5,938,151 $ - $5,938,151 15. Commitments and Contingencies A. Risk Managements The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During 1987, the City established the Self Insurance Fund (an Internal Service Fund) to account for and finance its uninsured risks of loss. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is subject to a $25,000 deductible. Property and casualty insurance coverage is provided through a pooled self-insurance program through LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. For property (other than vehicles for which the City is self-insured) and casualty coverage, the City has a $75,000 deductible per occurrence with a $150,000 annual maximum. This deductible gets paid out of the Self-Insurance Fund as necessary. 96 Page 361 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 The HRA has seven tax increment pay-as-you-go agreements. The agreements are not a general obligation of the HRA and are payable solely from available tax increment. Accordingly, these agreements are not reflected in the financial statements of the HRA. Details of the pay-as-you-go notes are as follows: TIF District #6, Lake Pointe (Medtronic): Issued in 2001 in the principal sum of $20,000,000 with an interest rate of 6.75% per annum. Principal and interest shall be paid on August 1, 2001 and each February 1 and August 1 thereafter to and including March 1, 2026. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the HRA. The pay-as- you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for public improvements. The HRA shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on March 1, 2026. The current year abatement (TIF note payments) amounted to $798,696. At December 31, 2025, the TIF District had been decertified. TIF District #19, Main Street: Issued in 2008 in the principal sum of $1,500,000 with an interest rate of 7.00% per annum. Principal and interest shall be paid on August 1, 2009 and each February 1 and August 1 thereafter to and including February 1, 2025. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the HRA. The pay-as- you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for certain public redevelopment costs. The current year abatement (TIF note payments) amounted to $0. At December 31, 2025, the TIF District had been decertified. TIF District #22, Northstar – Fridley Senior Apartments Issued in 2021 in the principal sum of $3,204,650 with an interest rate of 5.00% per annum. Principal and interest shall be paid on August 1, 2022, and each February 1 and August 1 thereafter to and including February 1, 2043. Payments are solely from available tax increment derived from developed/redeveloped property and paid to the HRA. The pay-as-you-go note provides for payment to the developer equal to 90% of all increments received in the prior six months. The HRA shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2043. Current year abatement (TIF note payments) amounted to $259,096. At December 31, 2025, the balance outstanding was $2,885,300. TIF District #22, Fridley Market Apartments Issued in 2021 in the principal sum of $2,845,250 with an interest rate of 5.00% per annum. Principal and interest shall be paid on August 1, 2022, and each February 1 and August 1 thereafter to and including February 1, 2043. Payments are solely from available tax increment derived from developed/redeveloped property and paid to the HRA. The pay-as-you-go note provides for payment to the developer equal to 90% of all increments received in the prior six months. The HRA shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2043. Current year abatement (TIF note payments) amounted to $241,065. At December 31, 2025, the balance outstanding was $2,502,123. 98 Page 363 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 TIF District #22, Fridley City Apartments Issued in 2023 in the principal sum of $1,222,750 with an interest rate of 5.00% per annum. Principal and interest shall be paid on August 1, 2023, and each February 1 and August 1 thereafter to and including February 1, 2043. Payments are solely from available tax increment derived from developed/redeveloped property and paid to the HRA. The pay-as-you-go note provides for payment to the developer equal to 90% of all increments received in the prior six months. The HRA shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2043. Current year abatement (TIF note payments) amounted to $38,355. At December 31, 2025, the balance outstanding was $1,164,171. TIF District #24, Northern Stacks Phase VIII: Issued in 2018 in the principal sum of $660,000 with an interest rate of 5.75% per annum. Principal and interest shall be paid on August 1, 2020 and each February 1 and August 1 thereafter to and including February 1, 2042. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the HRA. The pay-as- you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for street, utilities, right-of-way, land acquisition, and other public improvements. The HRA shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2040. Current year abatement (TIF note payments) amounted to $123,829. At December 31, 2025, the principal amount outstanding on the note was $530,980. TIF District #25, Roers – Holly Center: Issued in 2023 in the principal sum of $6,489,820 with an interest rate of 4.00% per annum. Principal and interest shall be paid on August 1, 2023 and each February 1 and August 1 thereafter to and including February 1, 2049. Payments are payable solely from available tax increment derived from the developed/redeveloped property and paid to the HRA. The pay-as- you-go note provides for payment to the developer equal to 90% of all tax increment received in the prior six months. The payment reimburses the developer for street, utilities, right-of-way, land acquisition, and other public improvements. The HRA shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final payment on February 1, 2049. Current year abatement (TIF note payments) amounted to $701,172. At December 31, 2025, the principal amount outstanding on the note was $5,763,761. From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2025, there are five series outstanding issued after July 1, 1995 with an aggregate principal amount payable of $67,652,685. 99 Page 364 of 491 THE CITY OF FRIDLEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2025 17. Deficit Fund Balances At December 31, 2025, individual funds with a deficit fund balance are as follows: Primary government: Governmental Fund: Special Assessment Construction Capital Projects ($22,409) Internal Service Fund: Employee Benefits ($10,471,408) Component unit: Gateway Northeast ($423,016) BAE Hazardous Sub District (1,936,314) Locke Point Park (3,993,832) Gateway West (55,117) Northern Stacks VIII (2,168) Moon Plaza (999) 18. Contingent Receivable In 1999, the HRA entered into an agreement with Medtronic for the sale of land from the HRA to Medtronic. The original principal amount of the receivable was $5,000,000 and the outstanding balance at December 31, 2025 is $2,504,823. Interest is added quarterly at a rate of 8.25%. Payments on the note receivable are made in an amount equal to 11.11% of tax increment note payments received by Medtronic through 2013, and 22.22% of tax increment note payments receivable from 2013 through 2026. 19. Commitments At December 31, 2025, the City had project contracts in progress. The commitments related to the remaining contract balances amounted to $7,221,067. Additionally, the City had active contracts to purchase capital assets totaling $2,108,576. 20. Recently Issued Accounting Standards The Governmental Accounting Standards Board (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 103 Financial Reporting Model Improvements. The provisions of this Statement are effective for fiscal years beginning after June 15, 2025. Statement No. 104 Disclosure of Certain Capital Assets. The provisions of this Statement are effective for reporting periods beginning after June 25, 2025. Statement No. 105 Subsequent Events. The provisions of this Statement are effective for reporting periods beginning after June 15, 2026. The effect these standards may have on future financial statements is not determinable at this time. 100 Page 365 of 491101 Page 366 of 491 Exhibit B-1 Page 1 of 4 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2025 2025 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes and special assessments: Current ad valorem taxes $16,098,300 $16,098,300 $15,899,537 ($198,763) Delinquent ad valorem taxes-net of abatements - - (245,251) (245,251) Penalties and interest 20,000 20,000 16,591 (3,409) Special assessments 60,000 99,000 37,797 (61,203) Total taxes and special assessments 16,178,300 16,217,300 15,708,674 (508,626) Licenses and permits: Licenses: Rental 260,000 260,000 300,860 40,860 Business 69,900 69,900 71,375 1,475 All other 40,000 40,000 40,950 950 Permits 807,700 807,700 757,470 (50,230) Total licenses and permits 1,177,600 1,177,600 1,170,655 (6,945) Intergovernmental revenue: Federal grants 289,000 289,000 257,903 (31,097) State maintenance aid 512,500 552,500 560,813 8,313 Local grants 1,097,400 1,398,900 1,300,767 (98,133) Other state grants 171,600 516,600 599,406 82,806 Police and fire pension 544,000 544,000 919,444 375,444 Total intergovernmental revenue 2,614,500 3,301,000 3,638,333 337,333 Charges for services: General government 1,489,100 1,489,100 1,478,334 (10,766) Public safety 748,600 748,600 646,198 (102,402) Public works 418,900 418,900 247,100 (171,800) Community development 223,800 223,800 216,941 (6,859) Recreation 189,500 189,500 245,838 56,338 Total charges for services 3,069,900 3,069,900 2,834,411 (235,489) Fines and forfeits 152,000 152,000 149,546 (2,454) Investment income: Interest and dividends 225,000 225,000 616,320 391,320 Net change in the fair value of investments - - 147,175 147,175 Total investment income 225,000 225,000 763,495 538,495 Miscellaneous revenue: Insurance and other reimbursements 175,600 175,600 235,248 59,648 Gambling tax 30,000 30,000 50,415 20,415 Donations 9,500 9,500 21,560 12,060 Miscellaneous 94,000 94,000 81,407 (12,593) Total miscellaneous revenue 309,100 309,100 388,630 79,530 Total revenues 23,726,400 24,451,900 24,653,744 201,844 See accompanying notes to the required supplementary information. 102 Page 367 of 491 Exhibit B-1 Page 2 of 4 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2025 2025 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Expenditures: General government: City management: Mayor and council: Current: Personnel services $134,400 $134,400 $111,602 $22,798 Supplies and other charges 74,000 74,000 60,998 13,002 Total mayor and council 208,400 208,400 172,600 35,800 City manager: Current: Personnel services 387,300 387,300 311,503 75,797 Supplies and other charges 24,100 24,100 12,957 11,143 Total city manager 411,400 411,400 324,460 86,940 Employee resources: Current: Personnel services 383,700 428,700 430,282 (1,582) Supplies and other charges 66,000 66,000 66,504 (504) Total employee resources 449,700 494,700 496,786 (2,086) Legal: Current: Supplies and other charges 450,500 450,500 436,729 13,771 Elections: Current: Personnel services 300 300 - 300 Supplies and other charges 10,900 10,900 3,935 6,965 Total elections 11,200 11,200 3,935 7,265 Communications and engagement Current: Personnel services 159,000 169,000 171,927 ($2,927) Supplies and other charges 88,100 88,100 80,384 7,716 Total communications and engagement 247,100 257,100 252,311 4,789 City clerk/records: Personnel services 271,800 271,800 277,340 (5,540) Supplies and other charges 40,900 40,900 19,009 21,891 Total city clerk/records 312,700 312,700 296,349 16,351 Total city management 2,091,000 2,146,000 1,983,170 162,830 Finance: Accounting: Current: Personnel services 750,400 750,400 700,701 49,699 Supplies and other charges 106,600 106,600 108,353 (1,753) Total accounting 857,000 857,000 809,054 47,946 Assessing: Current: Personnel services 347,900 347,900 336,693 11,207 Supplies and other charges 25,100 25,100 16,659 8,441 Total assessing 373,000 373,000 353,352 19,648 Information Technology: Current: Personnel services 376,500 376,500 380,309 (3,809) Supplies and other charges 316,000 316,000 269,392 46,608 Total Information Technology 692,500 692,500 649,701 42,799 Total finance 1,922,500 1,922,500 1,812,107 110,393 Nondepartmental: Current: Personnel services 65,000 10,000 - 10,000 Supplies and other charges 29,200 494,200 509,503 (15,303) Total nondepartmental 94,200 504,200 509,503 (5,303) See accompanying notes to the required supplementary information. 103 Page 368 of 491 Exhibit B-1 Page 3 of 4 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2025 2025 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Expenditures: (continued) General government: (continued) Facilities management: Current: Personnel services $347,600 $347,600 $344,389 $3,211 Supplies and other charges 513,400 513,400 496,485 16,915 Total facilities management 861,000 861,000 840,874 20,126 Total general government 4,968,700 5,433,700 5,145,654 288,046 Public safety: Police: Police protection: Current: Personnel services 8,984,300 8,984,300 8,757,292 227,008 Supplies and other charges 947,900 947,900 1,016,666 (68,766) Total police protection 9,932,200 9,932,200 9,773,958 158,242 Emergency management: Current: Supplies and other charges 14,700 14,700 26,823 (12,123) Total police 9,946,900 9,946,900 9,800,781 146,119 Fire: Fire protection: Current: Personnel services 1,705,200 1,705,200 1,554,042 151,158 Supplies and other charges 309,300 309,300 587,878 (278,578) Total fire protection 2,014,500 2,014,500 2,141,920 (127,420) Rental inspections: Current: Personnel services 272,300 272,300 271,775 525 Supplies and other charges 34,900 34,900 39,606 (4,706) Total rental inspections 307,200 307,200 311,381 (4,181) Total public safety 12,268,600 12,268,600 12,254,082 14,518 Public works: Engineering: Current: Personnel services 518,100 518,100 431,499 86,601 Supplies and other charges 65,100 65,100 117,611 (52,511) Total engineering 583,200 583,200 549,110 34,090 Lighting: Current: Personnel services 20,000 20,000 20,645 (645) Supplies and other charges 258,000 258,000 238,099 19,901 Total lighting 278,000 278,000 258,744 19,256 See accompanying notes to the required supplementary information. 104 Page 369 of 491 Exhibit B-1 Page 4 of 4 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2025 2025 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Expenditures: (continued) Park maintenance: Current: Personnel services $919,800 $949,800 $975,827 ($26,027) Supplies and other charges 252,200 252,200 251,377 823 Total park maintenance 1,172,000 1,202,000 1,227,204 (25,204) Street: Current: Personnel services 1,034,200 1,044,200 1,034,526 9,674 Supplies and other charges 620,800 375,800 420,504 (44,704) Total street 1,655,000 1,420,000 1,455,030 (35,030) Fleet services: Current: Personnel services 446,900 446,900 460,269 (13,369) Supplies and other charges 57,500 57,500 70,946 (13,446) Total garage 504,400 504,400 531,215 (26,815) Forestry: Current: Supplies and other charges 84,900 429,900 437,797 (7,897) Total forestry 84,900 429,900 437,797 (7,897) Total public works 4,277,500 4,417,500 4,459,100 (41,600) Community development: Building inspection: Current: Personnel services 400,400 400,400 348,773 51,627 Supplies and other charges 181,400 181,400 139,409 41,991 Total building inspection 581,800 581,800 488,182 93,618 Planning: Current: Personnel services 756,600 756,600 696,204 60,396 Supplies and other charges 160,000 199,000 169,988 29,012 Total planning 916,600 955,600 866,192 89,408 Total community development 1,498,400 1,537,400 1,354,374 183,026 Parks and recreation: Current: Personnel services 792,000 792,000 751,809 40,191 Supplies and other charges 217,000 217,000 193,134 23,866 Total parks and recreation 1,009,000 1,009,000 944,943 64,057 Debt service: Principal 98,100 98,100 98,010 90 Interest and other charges 9,500 9,500 9,494 6 Total debt services 107,600 107,600 107,504 96 Total expenditures 24,129,800 24,773,800 24,265,657 508,143 Excess (deficiency) of revenues over (under) expenditures (403,400) (321,900) 388,087 (306,299) Other financing sources (uses): Transfers in 566,900 566,900 582,500 15,600 Transfers out (163,500) (245,000) (245,000) - Total other financing sources 403,400 321,900 337,500 15,600 Net change in fund balance $ - $ - 725,587 ($290,699) Fund balance - January 1 13,774,948 Fund balance - December 31 $14,500,535 See accompanying notes to the required supplementary information. 105 Page 370 of 491106 Page 371 of 491107 Page 372 of 491108 Page 373 of 491109 Page 374 of 491110 Page 375 of 491111 Page 376 of 491112 Page 377 of 491113 Page 378 of 491114 Page 379 of 491115 Page 380 of 491116 Page 381 of 491 CITY OF FRIDLEY, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2025 2018 Changes in Plan Provisions:  Annual increases were changed to 1.00% for all years, with no trigger.  An end date of July 1, 2048, was added to the existing $9 million state contribution.  New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.  Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019, and 11.80% of pay, effective January 1, 2020.  Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019, and 17.70% of pay, effective January 1, 2020.  Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018.  Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply.  Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. 2017 Changes in Actuarial Assumptions  The single discount rate was changed from 5.6% to 7.5%.  Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 % lower than the previous rates.  Assumed rates of retirement were changed, resulting in fewer retirements.  The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred members. The CSA has been changed to 33% for vested members and 2% for non-vested members.  The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP- 2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.  Assumed termination rates were decreased to 3.0% for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.  Assumed percentage of married female members was decreased from 65% to 60%.  Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females.  The assumed percentage of female members electing Joint and Survivor annuities was increased.  The assumed annual benefit increase rate was changed from 1.0% for all years to 1.00% per year through 2064 and 2.50% thereafter. 2016 Changes in Actuarial Assumptions  The assumed annual benefit increase rate was changed from 1.00% per year through 2037 and 2.5% thereafter to 1.0% per year for all future years.  The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%.  The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. 117 Page 382 of 491This page intentionally left blank 118 Page 383 of 491119 Page 384 of 491This page intentionally left blank 120 Page 385 of 491121 Page 386 of 491122 Page 387 of 491123 Page 388 of 491This page intentionally left blank 124 Page 389 of 491125 Page 390 of 491This page intentionally left blank 126 Page 391 of 491127 Page 392 of 491128 Page 393 of 491129 Page 394 of 491This page intentionally left blank 130 Page 395 of 491131 Page 396 of 491132 Page 397 of 491133 Page 398 of 491This page intentionally left blank 134 Page 399 of 491135 Page 400 of 491136 Page 401 of 491137 Page 402 of 491138 Page 403 of 491139 Page 404 of 491This page intentionally left blank 140 Page 405 of 491141 Page 406 of 491142 Page 407 of 491143 Page 408 of 491 Exhibit E-3 CITY OF FRIDLEY, MINNESOTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For The Year Ended December 31, 2025 Employee Benefits Self Insurance Total Cash flows from operating activities: Receipts from interfund services provided $1,941,066 $338,340 $2,279,406 Payment to suppliers (2,986) (367,404) (370,390) Payment to employees (1,883,230) - (1,883,230) Net cash flows from operating activities 54,850 (29,064) 25,786 Cash flows from noncapital financing activities: Intergovernmental revenue 102,157 - 102,157 Cash flows from capital and related financing activities: Acquisition and disposal costs of capital assets - (44,362) (44,362) Insurance reimbursement - 32,818 32,818 Net cash flows - capital and related financing activities - (11,544) (11,544) Cash flows from investing activities: Investment income (loss) 117,442 46,554 163,996 Net increase (decrease) in cash and cash equivalents 274,449 5,946 280,395 Cash and cash equivalents - January 1 1,918,005 780,402 2,698,407 Cash and cash equivalents - December 31 $2,192,454 $786,348 $2,978,802 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) $775,979 ($30,013) $745,966 Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Changes in assets and liabilities: Decrease (increase) in receivables - 740 740 Decrease (increase) in deferred outflows of resources 1,976,239 - 1,976,239 Increase (decrease) in payables (924,341) 209 (924,132) Increase (decrease) in deferred inflows of resources (1,773,027) - (1,773,027) Total adjustments (721,129) 949 (720,180) Net cash provided by operating activities $54,850 ($29,064) $25,786 144 Page 409 of 491145 Page 410 of 491146 Page 411 of 491147 Page 412 of 491148 Page 413 of 491149 Page 414 of 491 CITY OF FRIDLEY, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS HOUSING AND REDEVELOPMENT AUTHORITY December 31, 2025 Gateway East Gateway West Assets Cash and investments $41,407 $490 Taxes receivable - - Land held for resale - 2,610 Total assets $41,407 $3,100 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - Due to other funds - 55,607 Total liabilities 0 55,607 Deferred inflows of resources: Unavailable revenue - 2,610 Fund balance (deficit): Restricted 41,407 - Unassigned - (55,117) Total fund balance (deficit) 41,407 (55,117) Total liabilities, deferred inflows of resources, and fund balance $41,407 $3,100 150 Page 415 of 491 Exhibit F-3 Total Nonmajor Housing Northern Stacks Capital Project Replacement Satellite Lane Apts. Main Street VIII Moon Plaza Funds $418,649 $484,559 $15,575 $49,076 $5,491 $1,015,247 10,838 12 - - - 10,850 81,050 - - - - 83,660 $510,537 $484,571 $15,575 $49,076 $5,491 $1,109,757 $3,500 $ - $ - $51,243 $126 $54,869 - - - - 6,364 61,971 3,500 - 0 51,243 6,490 116,840 90,222 12 - - - 92,844 416,815 484,559 15,575 - - 958,356 - - - (2,167) (999) (58,283) 416,815 484,559 15,575 (2,167) (999) 900,073 $510,537 $484,571 $15,575 $49,076 $5,491 $1,109,757 151 Page 416 of 491 CITY OF FRIDLEY, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS HOUSING AND REDEVELOPMENT AUTHORITY For The Year Ended December 31, 2025 Housing Gateway East Gateway West Replacement Revenues: Tax increment $61,263 $49,319 $70,193 Investment income (loss) 910 843 19,700 Total revenues 62,173 50,162 89,893 Expenditures: Supplies and other charges 1,288 952 3,837 Developer assistance Interest expense 1,015 5,027 Total expenditures 2,303 5,979 3,837 Excess (deficiency of revenues over (under expenditures 59,870 44,183 86,056 Fund balance (deficit) - January 1 (18,463) (99,300) 330,759 Fund balance (deficit) - December 31 $41,407 ($55,117) $416,815 152 Page 417 of 491153 Page 418 of 491This page intentionally left blank 154 Page 419 of 491155 Page 420 of 491156 Page 421 of 491157 Page 422 of 491This page intentionally left blank 158 Page 423 of 491159 Page 424 of 491This page intentionally left blank 160 Page 425 of 491161 Page 426 of 491162 Page 427 of 491163 Page 428 of 491164 Page 429 of 491165 Page 430 of 491166 Page 431 of 491167 Page 432 of 491 CITY OF FRIDLEY, MINNESOTA FUND BALANCES - GOVERNMENTAL FUNDS Last ten fiscal years (Modified accrual basis of accounting) 2016 2017 2018 2019 General Fund: Nonspendable $51,305 $55,777 $77,801 $53,334 Restricted 35,903 14,466 20,335 42,180 Unassigned 9,084,228 9,522,843 11,045,978 10,166,947 Total general fund $9,171,436 $9,593,086 $11,144,114 $10,262,461 All other governmental funds: Nonspendable $ - $ - $ - $ - Restricted 1,903,290 34,821,855 5,009,553 12,775,223 Committed 2,549,903 2,658,339 6,765,928 11,165,161 Assigned 10,573,287 8,510,134 4,567,369 6,177,195 Unassigned (27,574) (9,453) - - Total all other governmental funds $14,998,906 $45,980,875 $16,342,850 $30,117,579 168 Page 433 of 491169 Page 434 of 491170 Page 435 of 491171 Page 436 of 491 CITY OF FRIDLEY, MINNESOTA TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Add: Commercial/ Total Area-wide Fiscal Residential Industrial Public All Tax Values and Year Property Property Utility Other Capacity Increment 2016 9,488,686 13,688,867 58,699 4,958,693 28,194,945 2,986,838 2017 10,488,279 15,061,056 59,759 5,564,751 31,173,845 2,946,266 2018 11,639,971 15,097,292 62,282 5,961,619 32,761,164 2,918,699 2019 18,645,518 16,935,599 69,652 1,189,818 36,840,587 1,978,916 2020 20,305,713 18,228,064 52,061 1,202,271 39,788,109 1,406,269 2021 22,172,098 18,811,165 62,485 1,415,212 42,460,960 1,279,918 2022 23,326,147 19,746,828 61,735 1,072,472 44,207,182 965,110 2023 23,027,902 22,034,994 62,818 7,306,294 52,432,008 (641,369) 2024 19,650,408 25,764,671 59,997 12,070,585 57,545,661 (1,873,012) 2025 19,176,751 28,012,278 71,245 11,285,288 58,545,562 (895,132) Source: Continuing Disclosure Document 1Property Values are determined on January 2 of the proceeding year. 172 Page 437 of 491 Table 5 Less: Fiscal Adjusted Total Estimated Tax Capacity Disparity Tax Capacity Direct Tax Market as a Percent Contribution Value Rate Value 1 of EMV 4,681,350 26,500,433 44.960% 2,207,363,400 106.39% 5,225,764 28,894,347 48.218% 2,416,338,500 107.89% 5,571,692 30,108,171 47.907% 2,557,662,900 108.81% 5,830,355 32,989,148 45.382% 2,854,939,900 111.67% 6,520,022 34,674,356 45.253% 3,073,484,500 114.75% 7,139,274 36,601,604 44.928% 3,267,352,600 116.01% 7,707,721 37,464,571 45.242% 3,425,676,400 118.00% 7,634,706 44,155,933 43.017% 4,068,533,300 118.74% 8,632,930 47,039,719 42.541% 4,378,541,100 122.33% 9,848,450 47,801,980 44.395% 4,453,967,100 122.48% 173 Page 438 of 491 CITY OF FRIDLEY MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Last Ten Fiscal Years School School School School Fiscal District District District District Year City No. 11 No. 13 No. 14 No. 16(1) County 2016 44.960% 20.885% 29.442% 54.252% 39.609% 38.894% 2017 48.218% 18.590% 27.633% 49.408% 40.229% 36.841% 2018 47.907% 18.392% 27.900% 51.006% 39.617% 37.792% 2019 45.382% 16.330% 33.148% 49.055% 37.632% 34.473% 2020 45.253% 16.948% 23.385% 46.213% 35.452% 33.440% 2021 44.941% 16.152% 28.771% 44.306% 33.110% 32.885% 2022 45.242% 16.319% 24.986% 43.699% 33.380% 29.254% 2023 43.017% 13.671% 18.201% 34.656% 27.812% 24.176% 2024 42.541% 13.592% 21.390% 37.135% 26.128% 25.629% 2025 44.395% 13.598% 21.668% 39.402% 26.553% 30.245% Source: Anoka County Property Records and Taxation Department 174 Page 439 of 491 Table 6 Special Special Total Total Total Total Districts Districts School School School School with with District District District District Coon Creek Rice Creek No. 11(1) No. 13(2) No. 14(2) No. 16(2) 9.688% 9.622% 114.427% 122.918% 147.728% 133.085% 6.758% 7.200% 110.407% 119.892% 141.667% 132.488% 6.892% 7.282% 110.983% 120.881% 143.987% 132.598% 6.265% 6.699% 102.450% 119.702% 135.609% 124.186% 6.120% 6.642% 101.761% 108.720% 131.548% 120.787% 4.354% 4.876% 98.332% 111.473% 127.008% 115.812% 4.224% 4.582% 95.039% 104.064% 122.777% 112.458% 5.073% 5.385% 85.937% 90.779% 107.234% 100.390% 5.878% 6.236% 87.640% 95.796% 111.541% 100.534% 5.552% 4.884% 93.790% 101.192% 118.926% 106.077% 175 Page 440 of 491 Table 7 CITY OF FRIDLEY, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS Current year and nine years ago 2025 2016 Percentage Percentage Taxable of Total City Taxable of Total City Capacity Capacity Capacity Capacity Taxpayer Value Rank Value Value Rank Value Hyde Development 2,602,830 1 4.45% N/A Medtronic, Inc. 2,259,278 2 3.86% $1,673,434 1 5.94% John Allen Industrial Equities 1,289,522 3 2.20% $4,655,316 16.52% Shamrock Investments 1,067,426 4 1.82% N/A Target Corporation 988,988 5 1.69% 399,802 4 1.42% Cummins Power (Onan Corp) 955,548 6 1.63% 455,694 3 1.62% Roers Fridley Apartments 747,110 7 1.28% N/A BNSF Railroad 725,202 8 1.24% 338,536 5 1.20% Cielo Partners LLC 675,000 9 1.15% N/A Springbrook Investment LLC 619,849 10 1.06% N/A Unity/Fridley Medical Clinic 0 N/A 294,180 6 1.04% University Avenue Associates 0 N/A 206,791 9 0.73% Georgetown Apartments 0 N/A 266,475 8 0.95% BAE / GPT Fridley 0 N/A 657,066 2 2.33% Wal-Mart/Sam's Club 0 N/A 268,328 7 0.95% River Pointe Apartments 0 N/A 95,010 10 0.34% Total $11,930,753 20.38% $9,310,632 33.04% Total All Property $58,545,562 $28,194,945 Source: City Assessor 176 Page 441 of 491 Table 8 CITY OF FRIDLEY, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last ten fiscal years Fiscal Taxes Collected Within The Collections Year Levied Fiscal Year of the Levy in Total Collections to Date Ended For The Percentage Subsequent Percentage Dec. 31 Fiscal Year Amount of Levy Years1 Amount of Levy 2016 12,200,835 12,172,555 99.77% 25,468 12,198,023 99.98% 2017 14,122,251 13,990,154 99.06% 129,366 14,119,520 99.98% 2018 14,807,913 14,804,501 99.98% 1,245 14,805,746 99.99% 2019 15,494,419 15,339,721 99.00% 154,348 15,494,069 100.00% 2020 16,109,557 16,030,087 99.51% 71,179 16,101,266 99.95% 2021 16,890,084 16,834,247 99.67% 47,324 16,881,571 99.95% 2022 17,392,070 17,326,104 99.62% 50,690 17,376,794 99.91% 2023 19,620,870 19,458,238 99.17% 104,963 19,563,201 99.71% 2024 20,577,799 20,367,377 98.98% 115,424 20,482,801 99.54% 2025 21,677,595 21,395,324 98.70% N/A 21,395,324 98.70% 1Includes repayment of property taxes abatements Source: City Finance Department 177 Page 442 of 491 CITY OF FRIDLEY, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten fiscal years Governmental Activities Fiscal Improvement Tax Increment Tax Abatement Equipment Lease Subscription Year Bonds Bonds Bonds Certificates Liability Liability Total 2016 1,980,000 - - 1,130,000 - - 3,110,000 2017 51,111,785 - - 925,000 - - 52,036,785 2018 49,863,689 - - 720,000 - - 50,583,689 2019 49,019,830 9,510,000 - 510,000 - - 59,039,830 2020 48,125,572 14,050,000 - 295,000 - - 62,470,572 2021 46,630,244 13,420,000 - 150,000 - - 60,200,244 2022 44,454,805 13,440,110 22,211,771 - - - 80,106,686 2023 42,926,410 12,558,178 22,121,218 - 516,400 - 78,122,206 2024 41,328,014 11,641,246 21,057,434 - 935,438 261,012 75,223,144 2025 39,649,618 10,684,313 19,943,649 - 853,545 130,198 71,261,323 1 Demographic information can be found on Table 13 2 In fiscal year 2023, the City implemented GASB Statement No. 87 "Leases" and GASB Statement No. 96 "Subscription-Based Information Technology Arrangements," respectively, which changed the accounting and reporting requirements for lease and subscription-based information technology arrangement activities. 178 Page 443 of 491 Table 9 Business Type Activities Total Percentage Lease Revenue Primary of Personal Per Liability Bonds Total Government Income1 Capita1 - 10,811,935 10,811,935 13,921,935 1.69% 109 - 8,200,461 8,200,461 60,237,246 7.25% 1,815 - 7,273,987 7,273,987 57,857,676 6.74% 1,755 - 6,317,180 6,317,180 65,357,010 7.28% 1,969 - 5,575,343 5,575,343 68,045,915 7.01% 2,088 - 3,688,506 3,688,506 63,888,750 6.51% 2,020 817,471 3,123,506 3,940,977 84,047,663 7.78% 2,674 810,300 2,524,832 3,335,132 81,457,338 7.45% 2,579 753,384 2,227,995 2,981,379 78,204,523 6.64% 2,494 605,289 1,926,158 2,531,447 73,792,770 6.31% 2,323 179 Page 444 of 491 Table 10 CITY OF FRIDLEY, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT January 1, 2030 Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable1 Debt Debt repaid with property taxes: Independent School District No. 11 $223,625,000 1.60% $3,578,000 Independent School District No. 13 12,961,769 31.46% 4,077,773 Independent School District No. 14 53,365,000 100.00% 53,365,000 Independent School District No. 16 113,980,000 36.80% 41,944,640 Metro Council 1,564,245,118 1.19% 18,614,517 Anoka County 43,690,000 18.04% 7,881,676 Vocational/Technical District No. 916 64,130,000 2.21% 1,417,273 Subtotal - overlapping debt 130,878,878 City of Fridley - Direct debt $71,261,321 100.00% 71,261,321 Total direct and overlapping debt $202,140,199 Sources: Continuing Disclosure Document 1Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 180 Page 445 of 491 Table 11 CITY OF FRIDLEY, MINNESOTA LEGAL DEBT MARGIN INFORMATION Last ten fiscal years Market Value $4,453,967,100 Debt Limit 3% of Market Value $133,619,013 Amount of Debt Applicable to Debt Limit: Total Debt $40,495,000 Deductions: Revenue Bonds 1,865,000 1,865,000 Total Amount of Debt Applicable to Debt Limit 38,630,000 Legal Debt Margin $94,989,013 Legal Debt Margin Calculation for the last 10 Fiscal Years Net Debt Legal Amount of Debt Fiscal Debt Applicable to Debt Applicable to Year Limit Limit Margin Debt Limit 2016 66,220,902 1,130,000 65,090,902 1.71% 2017 72,490,155 50,055,000 22,435,155 69.05% 2018 76,729,887 48,790,000 27,939,887 63.59% 2019 85,648,197 56,935,000 28,713,197 66.48% 2020 92,204,535 60,070,000 32,134,535 65.15% 2021 102,827,526 58,065,000 44,762,526 56.47% 2022 102,770,292 76,690,000 26,080,292 74.62% 2023 122,055,999 41,780,000 80,275,999 34.23% 2024 131,356,233 40,245,000 91,111,233 30.64% 2025 133,619,013 38,630,000 94,989,013 28.91% 181 Page 446 of 491 CITY OF FRIDLEY, MINNESOTA PLEDGED-REVENUE COVERAGE Last ten fiscal years Improvement Bonds Equipment Certificates Special Tax Utility Fiscal Assessment Debt Service Increment Debt Service Operating Year Collections Principal Interest Coverage Collections Principal Interest Coverage Revenues 2016 166,895 1,030,000 92,090 0.15 234,359 200,000 20,330 1.06 9,938,517 2017 105,827 1,525,000 914,322 0.04 225,962 205,000 17,205 1.02 10,499,230 2018 52,979 1,185,000 1,747,988 0.02 232,848 205,000 13,855 1.06 11,437,211 2019 48,680 1,285,000 1,710,938 0.02 231,149 210,000 10,371 1.05 11,364,221 2020 25,154 1,325,000 1,671,788 0.01 157,817 215,000 6,570 0.71 11,600,924 2021 10,336 1,295,000 1,638,638 0.00 160,511 145,000 3,526 1.08 12,589,134 2022 - 1,250,000 1,594,113 0.00 (95) 150,000 1,238 0.00 12,950,686 2023 - 1,465,000 1,526,238 0.00 1,878 - - N/A 14,415,704 2024 - 1,535,000 1,451,238 0.00 (173) - - N/A 14,282,618 2025 - 1,615,000 1,372,488 0.00 - - - N/A 14,937,658 182 Page 447 of 491 Table 12 Utility Revenue Bonds Tax Abatement Bonds Tax Increment Bonds Utility Net Operating Avaliable Debt Service Debt Service Debt Service Expenses Revenue Principal Interest Coverage Principal Interest Principal Interest 7,381,382 2,557,135 610,000 181,610 3.23 - - - - 8,374,461 2,124,769 2,600,000 261,888 0.74 - - - - 7,882,418 3,554,793 915,000 180,688 3.24 - - - - 8,141,382 3,222,839 945,000 155,763 2.93 - - - - 8,584,074 3,016,850 730,000 134,838 3.49 - - - 280,368 8,362,197 4,226,937 1,875,000 131,838 2.11 - - 630,000 460,038 9,046,781 3,903,905 565,000 66,763 6.18 - - 705,000 426,663 9,641,850 4,773,854 575,000 55,363 7.57 - 1,030,880 745,000 390,413 10,171,394 4,111,224 285,000 46,763 12.39 965,000 942,325 780,000 352,288 10,617,096 4,320,562 290,000 41,013 13.05 1,015,000 892,825 820,000 312,288 183 Page 448 of 491 Table 13 CITY OF FRIDLEY, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last ten fiscal years Total Per Capita Fiscal Unemployment Personal Personal Year Population Rate Income Income 2016 28,631 3.9% 810,142,776 28,296 2017 28,667 3.8% 829,622,980 28,940 2018 28,824 3.1% 862,385,256 29,919 2019 28,981 3.3% 897,599,532 30,972 2020 29,924 7.5% 971,033,800 32,450 2021 29,806 5.0% 981,899,058 32,943 2022 29,962 2.6% 1,079,830,480 36,040 2023 30,289 3.4% 1,092,705,964 36,076 2024 30,156 3.5% 1,177,591,800 39,050 2025 30,679 3.9% 1,168,869,900 38,100 Sources: Metropolitan Council (population), Continuing Disclosure Document (unemployment rate) 184 Page 449 of 491 Table 14 CITY OF FRIDLEY, MINNESOTA PRINCIPAL EMPLOYERS Current year and nine years ago 2025 2016 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Medtronic, Inc. 3,000 1 12.10% 3,464 1 15.50% Cummins Power (Onan) 1,500 2 6.05% 1,210 3 5.42% Mercy - Unity Medical Center 839 3 3.39% 1,138 2 5.09% Mid-City Cleaning Contractors Inc. 800 4 3.23% N/A N/A Minco Products 700 5 2.82% 515 7 2.30% Wal-Mart 608 6 2.45% 312 9 1.40% BAE Systems 550 7 2.22% 600 5 2.69% Target 550 8 2.22% 696 4 3.11% ISD #14 (Fridley Schools) 546 9 2.20% 580 6 2.60% Rise 170 10 0.69% N/A N/A Taylor Communications 75 0.30% N/A N/A Kurt Manufacturing 150 0.61% 295 10 1.32% Park Construction N/A N/A 300 8 1.34% Lofthouse Bakery N/A N/A N/A N/A Total 9,488 38.28% 9,110 40.77% Total City Employment 24,784 22,345 Source: Fridley Community Development Dept, MN Department of Employment and Economic Development 185 Page 450 of 491This page intentionally left blank 186160 Page 451 of 491 Table 15 CITY OF FRIDLEY, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 General government: City Administration 5.0 5.0 5.0 5.0 4.0 5.0 7.0 7.0 7.0 7.0 Employee Resources 2.0 2.0 2.8 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Customer Relations - - 0.7 1.0 - - - - - - Finance 15.0 15.0 16.1 16.9 17.9 23.5 20.0 20.0 20.0 20.5 Community Development 10.0 10.0 10.0 10.0 10.0 10.0 10.0 11.0 11.4 11.7 Public safety: Police department 52.4 52.4 52.1 54.1 54.9 56.7 58.7 58.7 59.2 59.2 Fire department 7.0 7.0 7.0 6.0 4.9 6.0 6.0 6.0 6.0 7.0 Public works: Administration 1.5 1.8 1.8 2.8 2.8 3.0 3.0 2.9 2.9 2.9 Engineering 1.8 2.1 2.1 2.1 2.1 2.1 2.1 2.8 3.8 4.1 Parks 5.8 5.8 5.8 5.8 5.8 5.8 5.8 7.1 7.1 7.1 Streets 8.5 8.8 8.8 8.8 8.9 8.7 8.7 8.3 8.3 8.3 Mechanic 3.8 3.8 3.8 3.8 4.0 3.6 3.6 3.9 3.9 3.9 Water 7.8 7.9 7.9 7.9 7.9 8.2 8.4 8.1 8.1 8.1 Sewer 3.7 3.7 3.7 3.7 4.6 4.2 4.2 4.6 4.6 4.6 Storm Water 5.1 5.1 5.0 5.0 6.7 5.3 6.1 6.1 6.1 6.1 Parks and Recreation: Recreation and Naturalist 9.0 9.8 10.2 9.0 11.7 10.8 11.3 11.5 11.5 11.5 Total 138.4 140.0 142.8 144.9 149.1 155.9 157.8 161.0 162.9 165.0 Source: City Finance Department 187 Page 452 of 491 CITY OF FRIDLEY, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2016 2017 2018 2019 Police: Physical arrests 752 979 1,043 911 Parking violations 922 553 612 1,741 Traffic violations 2,601 2,250 2,622 1,932 Fire: Emergency responses 3,268 3,439 2,415 2,596 Fires occurred 127 126 126 105 Commercial Inspections 789 867 829 1,672 Community Development Rental Inspections 1,559 1,434 1,410 1,643 Refuse collection: Recyclables collected (tons per day) 5.99 6.62 6.20 6.37 Recyclables collected (pounds per person) 156.54 169.25 158.29 162.28 Building inspection: Permits issued: Residential 2,227 1,804 2,007 2,093 Commercial 599 612 514 453 Total permit valuation $73,636,057 $103,663,306 $91,601,072 $98,100,786 Other public works: Street resurfacing (miles) 2.2 1.9 0.2 0.6 Recreation Recreation Program Participant hours 315,000 300,000 321,927 58,354 Senior Program Participant hours 65,500 65,500 21,615 N/A Nature Center Education Participants 15,609 16,339 16,872 15,587 Nature Center Special Event Participants 4,751 2,670 4,200 3,700 Nature Center Facility Rental Visitors N/A 5,364 5,500 4,456 Water: Connections 8,374 8,259 8,261 8,305 Storage capacity (gallons) 6,500,000 6,500,000 6,500,000 6,500,000 Average daily production (gallons) 3,560,000 3,390,000 3,233,000 3,056,000 Peak daily production (gallons) 6,392,000 6,379,000 5,900,000 5,720,000 Sewer: Connections 8,271 8,235 8,239 8,291 Sources: Various City departments. 188 Page 453 of 491 Table 16 Fiscal Year 2020 2021 2022 2023 2024 2025 761 1,247 1,365 1,367 1,303 1,464 671 841 1,289 1,137 1,695 1,521 1,883 1,395 1,258 1,891 814 1,101 3,342 3,003 3,372 3,254 2,984 3,381 123 159 162 126 97 178 862 397 588 722 477 565 1,260 1,374 1,494 1,657 2,107 1,110 6.57 5.79 5.68 5.71 5.38 5.28 163.28 142.72 140.32 137.41 130.32 128.73 2,329 2,278 2,095 2,260 2,112 2,241 378 430 297 353 323 443 $99,191,402 $87,575,510 $32,218,314 $73,578,562 $29,499,198 $45,467,052 3.6 2.2 1.8 4.8 1.3 0.9 6,892 50,765 50,770 51,687 59,872 55,562 N/A N/A N/A N/A N/A N/A 3,785 10,581 18,343 17,229 15,515 14,313 145 3,528 6,168 5,769 4,945 4,250 1,059 1,419 3,901 4,632 4,653 5,180 8,343 8,362 8,364 8,356 8,356 8,361 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 3,370,000 3,480,000 3,490,000 3,390,000 3,038,000 3,040,000 6,458,000 7,345,000 6,443,000 7,802,000 4,704,000 4,851,000 8,326 8,344 8,346 8,338 8,338 8,343 189 Page 454 of 491 Table 17 CITY OF FRIDLEY, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Fiscal Years Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Police: Stations 11111111111 Squad cars 13 13 12 15 15 15 15 15 16 16 16 Fire stations 33332222222 Other public works: Streets (miles) 125.5 125.5 125.5 125.8 126.1 126.1 126.1 126.1 126.1 126.0 126.0 Highways (miles) 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 10.3 Streetlights 1,059 1,059 1,059 1,059 1,093 1,123 1,123 1,123 1,123 1,123 1,265 Traffic signals 36 36 36 36 36 36 36 36 36 36 36 Parks, recreation and naturalist: Acreage 682 682 682 665 665 666 666 666 742 742 742 Playgrounds 29 29 29 28 28 29 29 29 30 30 30 Baseball/softball diamonds 22 22 21 21 21 21 21 21 21 21 15 Soccer/football fields 22222222221 Water: Water mains (miles) 113.2 113.2 113.2 116.0 117.5 127.0 127.8 127.8 127.8 127.8 127.8 Fire hydrants 1,013 1,013 1,013 1,020 1,040 1,040 1,070 1,420 1,422 1,422 1,422 Storage capacity (millions of gallons) 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 Wastewater: Sanitary sewers (miles) 103.0 103.0 103.0 106.0 107.5 109.0 109.2 109.2 109.2 109.2 109.2 Storm sewers (miles) 102.2 102.2 102.2 104.5 107.0 115.5 115.5 115.5 89.1 89.1 89.1 Sources: Various City departments. 190 Page 455 of 491 CITY OF FRIDLEY, MINNESOTA AUDIT MANAGEMENT LETTER For The Year Ended December 31, 2025 Page 456 of 491- This page intentionally left blank - Page 457 of 491 To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota We have completed the 2025 audit of the City of Fridley, Minnesota and have issued our report thereon. Our Independent Auditor’s Report is included in the City’s Annual Comprehensive Financial Report. This Audit Management Letter provides a summary of audit results along with comparisons and trend analysis of financial results. Thank you for the opportunity to serve the City. We are available to discuss this report with you. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 1, 2026 Page 458 of 491- This page intentionally left blank - Page 459 of 491City of Fridley, Minnesota Audit Management Letter Report Summary REPORT SUMMARY Several reports are issued in conjunction with the audit. A brief summary is as follows: Report Name Elements of Report Overview Annual Comprehensive  Management’s Discussion  Unmodified (“clean”) Financial Report (ACFR) and Analysis opinion on the Basic  Financial statements Financial Statements  Footnotes  Supplemental information  Statistical information Report on Internal Control Results of testing  One internal control over Financial Reporting and  Internal controls over finding – audit adjustment on Compliance and Other financial reporting Matters  Compliance with laws, regulations, contracts and grants State Legal Compliance  Results of testing certain  One compliance finding – Report provisions of Minnesota prompt payment Statutes 3 Page 460 of 491City of Fridley, Minnesota Audit Management Letter Excellence in Financial Reporting NATIONAL RECOGNITION FOR EXCELLENCE IN FINANCIAL REPORTING The “Certificate of Achievement for Excellence in Financial Reporting” is an award program offered by the Government Finance Officers Association of the United States and Canada (GFOA). This Award Program has three key objectives:  Recognize governments that issue a high- quality ACFR.  Encourage governments to prepare an easily readable and understandable Financial Report.  Provide educational materials, comments, and suggestions for improvements to program participants. The City of Fridley, Minnesota has been awarded the Certificate of Achievement for Excellence in Financial Reporting every year since 2011. Continued participation in this program demonstrates the City’s commitment to financial reporting. 4 Page 461 of 491City of Fridley, Minnesota Audit Management Letter Financial Statement Summary SUMMARY OF FINANCIAL ACTIVITY Individual fund information is presented in several different sections of the document. As such, a summary of financial activity (rounded to the nearest 1,000) of the City’s Governmental Funds for the year ended December 31, 2025 is presented below: Increase Interfund (Decrease) Fund Transfers in Fund Balance Fund Type Revenues Expenditures (Net) Balance 12/31/2025 General Fund $24,654,000 $24,266,000 $338,000 $726,000 $14,501,000 Special Revenue Funds 1,990,000 1,951,000 - 39,000 1,470,000 Debt Service Funds 6,033,000 6,032,000 - 1,000 5,506,000 Capital Project Funds 9,326,000 18,846,000 91,000 (9,429,000) 24,181,000 Total $42,003,000 $51,095,000 $429,000 ($8,663,000) $45,658,000 Additional detail by fund is presented on the next page. 5 Page 462 of 491City of Fridley, Minnesota Audit Management Letter Financial Statement Summary Other Sources Interfund Change in Fund Balance/ and Transfers Fund Balance/ Net Position Fund Revenues Expenditures (Net) Net Position 12/31/2025 General $24,654,000 $24,266,000 $338,000 $726,000 $14,501,000 Special Revenue: Cable TV 213,000 334,000 - (121,000) 842,000 Solid Waste Abatement 616,000 582,000 - 34,000 153,000 Drug and Gambling Forfeiture 33,000 29,000 - 4,000 85,000 Police Activity 219,000 216,000 - 3,000 20,000 Springbrook Nature Center 909,000 790,000 - 119,000 370,000 Debt Service: Debt Service Fund 6,033,000 6,032,000 - 1,000 5,506,000 Capital Project: Building Improvements 553,000 638,000 - (85,000) 1,812,000 Park Improvements 1,921,000 10,444,000 (154,000) (8,677,000) 4,816,000 Street Improvements 4,536,000 4,987,000 45,000 (406,000) 1,109,000 Information System Improvement 418,000 542,000 - (124,000) 119,000 Capital Equipment 973,000 2,146,000 200,000 (973,000) 581,000 Special Assessment 84,000 86,000 - (2,000) (22,000) Community Investment 841,000 3,000 - 838,000 15,766,000 Enterprise: Liquor 5,906,000 5,601,000 (389,000) (84,000) 2,111,000 Water 6,510,000 3,607,000 (40,000) 2,863,000 22,425,000 Sewer 8,510,000 7,537,000 - 973,000 13,678,000 Storm Water 3,724,000 1,611,000 - 2,113,000 15,777,000 Internal Service: Employee Benefits 2,161,000 1,165,000 - 996,000 (10,471,000) Self Insurance 417,000 412,000 - 5,000 785,000 HRA: General 1,487,000 980,000 - 507,000 20,540,000 Housing Loan 1,142,000 169,000 682,000 1,655,000 6,562,000 Tax Increment 8,020,000 3,630,000 (682,000) 3,708,000 5,519,000 Total $79,880,000 $75,807,000 $ - $4,073,000 $122,584,000 6 Page 463 of 491City of Fridley, Minnesota Audit Management Letter Property Taxes Property Tax Collection The City of Fridley continues to have a strong property tax collection rate. A schedule of the collection rate for the past seven years is as follows: Certified Tax Collection Year Levy Rate 2019 15,494,419 99.0% 2020 16,109,557 99.5% 2021 16,890,094 99.7% 2022 17,392,070 99.6% 2023 19,620,870 99.2% 2024 20,577,799 99.0% 2025 21,677,595 99.3% The 2025 collection rate above reflects collections related to the pay 2025 levy. Total property tax revenue includes an adjustment relating to the Medtronic abatement. The 2025 collection rate including the $430,446 abatement is 97.3%. 7 Page 464 of 491City of Fridley, Minnesota Audit Management Letter General Fund GENERAL FUND The General Fund balance increased $725,587 during 2025. A budgetary comparison for 2025 is as follows: Budget Budget Actual Variance Revenues and other sources $24,451,900 $24,653,744 $201,844 Expenditures 24,773,800 24,265,657 (508,143) Revenues over (under) expenditures (321,900) 388,087 (306,299) Transfers from other funds 566,900 582,500 15,600 Transfers to other funds (245,000) (245,000) - Total transfers 321,900 337,500 15,600 Net change in fund balance $ - 725,587 ($290,699) Fund Balance - January 1 13,774,948 Fund Balance - December 31 $14,500,535 Detail of the preceding budget variances is presented in Exhibit B-1 of the 2025 Annual Comprehensive Financial Report. A summary of the significant budget variances are as follows: Revenues: Investment income exceeded budget by approximately $538,500 which includes the year-end market value adjustment. Property tax revenue was under budget by approximately $445,000 primarily as a result of the Medtronic abatement. 8 Page 465 of 491City of Fridley, Minnesota Audit Management Letter General Fund Expenditures: Total General Fund expenditures were within 98% of budget. Expenditures in total were less than the final budgetary estimates by $508,143. Personnel costs were under budget across most departments, making up the majority of the budget savings. Fund balance: The fund balance of the General Fund was $14,500,535 as of December 31, 2025. Further detail on the components of fund balance is as follows: December 31, December 31, Fund Balance 2025 2024 Component Amount Amount Nonspendable $164,359 $281,232 Restricted 1,136,789 1,163,646 Unassigned: Cash flow purposes 12,977,450 12,146,650 Remaining balance 221,937 183,420 Total $14,500,535 $13,774,948 9 Page 466 of 491City of Fridley, Minnesota Audit Management Letter General Fund Fund Balance – Cash Flow Purposes Over 66% of General Fund revenue is from property taxes and Local Government Aid (LGA). These monies are not received until the second half of the fiscal year. As such, working capital is necessary for cash flow operations during the first half of the year. In 2011, the City approved an unassigned General Fund Balance policy. The policy is to maintain a General Fund balance in the range of 35% - 50% of the subsequent years budgeted expenditures. The unassigned General Fund balance at December 31, 2025 was $13,199,387 which is 50.9% of the 2026 budgeted expenditures of $25,954,900. The City has a policy of transferring amounts over 50% to the Community Investment Fund. 10 Page 467 of 491City of Fridley, Minnesota Audit Management Letter General Fund The following chart of General Fund monthly cash balances illustrates the need for working capital. 11 Page 468 of 491City of Fridley, Minnesota Audit Management Letter Special Revenue Funds SPECIAL REVENUE FUNDS Special Revenue Funds are a classification of funds to account for revenues (and related expenditures) segregated by City policy or Federal or State Statutes for specific purposes. The City maintained five Special Revenue Funds during 2025 as follows: Revenues Expenditures Interfund Net 12/31/2025 and and Transfers Change in Fund Balance Fund Other Sources Other Uses Net Fund Balance (Deficit) Cable TV $212,759 $333,518 $ - ($120,759) $841,819 Solid Waste Abatement 616,382 581,950 - 34,432 153,398 Drug and Gambling Forfeiture 32,570 29,005 - 3,565 84,440 Police Activity 219,327 216,453 - 2,874 19,409 Springbrook Nature Center 908,720 790,205 - 118,515 369,049 Totals $1,989,758 $1,951,131 $0 $38,627 $1,468,115 Springbrook Nature Center Similar to the City’s General Fund, the Springbrook Nature Center Fund’s primary revenue source is property taxes. Due to the timing of receipt of property taxes (July and December), a reserve is needed to fund operations between property tax receipts. A recommended reserve amount is 50% of the annual tax levy, which is approximately $302,000. 12 Page 469 of 491City of Fridley, Minnesota Audit Management Letter Debt Service Funds DEBT SERVICE FUNDS Debt Service Funds are a type of governmental fund to account for the accumulation of resources for the payment of interest and principal on debt (other than Enterprise Fund debt). Current governmental reporting standards do not provide for the matching of long-term debt with its related financing sources. Although this information can be found in the City’s Financial Report, it is located in several different sections of the Financial Report. The following schedule extracts information from these different sections to provide an overview analysis of long-term debt and its related funding. Fund Debt Balance at Payable at Source of Bond Issue 12/31/25 12/31/25 Repayment General Obligation Bonds: G.O. CIP Bonds, Series 2017A (Civic Campus) 3,247,932 38,630,000 Property taxes G.O. Tax Increment Bonds, 2019A 445,438 9,510,000 Tax increment G.O. Tax Increment Bonds, 2020A 212,306 860,000 Tax increment G.O. Tax Abatement Bonds, 2022A 1,600,584 18,750,000 Property taxes Total $5,506,260 $67,750,000 13 Page 470 of 491City of Fridley, Minnesota Audit Management Letter Capital Projects Funds CAPITAL PROJECTS FUNDS The financial activity of the Capital Project Funds for 2025 was as follows: Change Fund Interfund in Fund Balance Fund Revenue Expenditures Transfers Balance 12/31/2025 Comments Expenditures include the 2025 Street Improvements $4,536,118 $4,987,219 $45,000 ($406,101) $1,109,053 Street Rehab projects, University Avenue and the 57th Ave Bridge. Special Assessment 83,713 85,739 - (2,026) (22,409) Construction Capital Projects Building Improvements 553,007 638,138 - (85,131) 1,812,323 Expenditures primarily relate to the Park Improvements 1,921,191 10,444,213 (154,000) (8,677,022) 4,816,352 Park System Improvement plan Information System 417,957 541,871 - (123,914) 118,826 Improvement Public safety equipment and vehicle Capital Equipment 973,274 2,145,734 200,000 (972,460) 581,598 leases. Created in 2018 and funded by interfund transfers from the Closed Community Investment 840,947 2,795 - 838,152 15,765,769 Bond Fund. This fund will begin contributing to the Park System Improvement Plan in 2026. Totals $9,326,207 $18,845,709 $91,000 ($9,428,502) $24,181,512 14 Page 471 of 491City of Fridley, Minnesota Audit Management Letter Enterprise Operating Funds Water Operations A chart of income and expense from operations is presented below: 16 Page 473 of 491City of Fridley, Minnesota Audit Management Letter Enterprise Operating Funds Sewer Operations A chart of income and expense from operations is presented below: 17 Page 474 of 491City of Fridley, Minnesota Audit Management Letter Enterprise Operating Funds Storm Water Operations The Storm Water Operations Fund is designed to accumulate resources for future storm water systems and/or improvements to existing systems. Operating expenses consist primarily of maintenance costs. A chart of income and expense from operations is presented below: 18 Page 475 of 491City of Fridley, Minnesota Audit Management Letter Enterprise Operating Funds Municipal Liquor Fund A summary of operations for the past three years is as follows: 2023 2024 2025 Amount Percent Amount Percent Amount Percent Sales and misc. operating revenue $6,230,594 100.0% $6,062,071 100.0% $5,839,998 100.0% Cost of sales 4,443,563 71.3% 4,410,176 72.8% 4,149,416 71.1% Gross profit 1,787,031 28.7% 1,651,895 27.2% 1,690,582 28.9% Operating expenses: Personnel services 713,095 11.8% 735,094 12.6% 754,288 12.9% Supplies and other charges 458,474 7.6% 488,732 8.4% 480,810 8.2% Depreciation and amortization 178,782 2.9% 190,716 3.3% 187,973 3.2% Total operating expense 1,350,351 22.3% 1,414,542 24.2% 1,423,071 24.4% Operating income $436,680 7% $237,353 4% $267,511 5% A chart of income and expense from operations for the past six years is presented below. 19 Page 476 of 491City of Fridley, Minnesota Audit Management Letter Housing and Redevelopment Authority HOUSING AND REDEVELOPMENT AUTHORITY Financial reporting standards require a City’s Annual Comprehensive Financial Report to include all component units of the City. The definition of a component unit is “a legally separate organization for which the elected officials of the primary government (in this case, the City of Fridley) are financially accountable.” The Housing and Redevelopment Authority (HRA) is considered a component unit of the City for financial reporting purposes. Detail of the funds included in the HRA is presented in Exhibits F-1 through F-4 of the 2025 Annual Comprehensive Financial Report. A summary of the individual funds is as follows: Change in Fund District Interfund Fund Balance No. Name Revenue Expenditures Transfers Balance 12/31/2025 General Fund $1,487,220 $980,250 $ - $506,970 $20,540,051 Housing Loan Fund 1,141,807 168,792 682,172 1,655,187 6,562,624 Subtotal 2,629,027 1,149,042 682,172 2,162,157 27,102,675 Tax Increment Funds: 6 Lake Pointe 892,994 800,602 - 92,392 74,512 13 Satellite Lane Apartments - 17,838 - (17,838) 484,559 17 Gateway East 62,173 2,303 - 59,870 41,407 18 Gateway West 50,162 5,979 - 44,183 (55,117) 19 Main Street - - - - 15,575 21 Gateway Northeast 712,117 50,713 - 661,404 (423,016) HR1 Housing Replacement 89,893 3,837 - 86,056 416,815 20 BAE Northern Stacks 2,745,583 1,139,001 (682,172) 924,410 5,148,008 20A BAE Hazardous Sub District 268,177 74,592 - 193,585 (1,936,314) 22 Northstar Transit Station 2,024,111 553,410 - 1,470,701 5,597,696 23 Locke Point Park 275,582 172,854 - 102,728 (3,993,832) 24 Northern Stacks VIII 114,244 103,137 - 11,107 (2,167) 25 Holly Center 778,463 703,003 - 75,460 152,033 26 Moon Plaza 6,339 2,679 - 3,660 (999) Subtotal 8,019,838 3,629,948 (682,172) 3,707,718 5,519,160 Total $10,648,865 $4,778,990 $0 $5,869,875 $32,621,835 20 Page 477 of 491City of Fridley, Minnesota Audit Management Letter Housing and Redevelopment Authority Individual funds that report a deficit have financed the deficit by an interfund loan from the HRA’s General Fund. A schedule of interfund loans as of December 31, 2025 is as follows: Fund Due From Due To General $6,440,891 $ - Gateway West - 55,607 Gateway Northeast - 444,692 BAE Hazardous Sub District - 1,939,104 Moon Plaza - 6,364 Locke Point Park - 3,995,124 Total $6,440,891 $6,440,891 If any of the above balances are not expected to be repaid within a reasonable time, accounting standards require that they be reclassified as a transfer. We recommend that the HRA review the likelihood of repayment of the above loans and authorize transfers for any that may not be repaid. 21 Page 478 of 491City of Fridley, Minnesota Audit Management Letter Accounting Standards ACCOUNTING STANDARDS Governmental Accounting Standards Board (GASB) statements that are required to be implemented in future years that may affect the City are as follows: Statement No. 103 Financial Reporting Model Improvements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2025. Statement No. 104 Disclosure of Certain Capital Assets. The provisions of this Statement are effective for Reporting periods beginning after June 15, 2025. Statement No. 105 Subsequent Events. The provisions of this Statement are effective for reporting periods beginning after June 15, 2026. 22 Page 479 of 491City of Fridley, Minnesota Audit Management Letter Communication with Those Charged with Governance COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Fridley for the year ended December 31, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated June 1, 2026. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2025. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 23 Page 480 of 491City of Fridley, Minnesota Audit Management Letter Communication with Those Charged with Governance Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements are the:  land held for resale  estimates used to calculate the net pension liability, the pension related deferred outflows and inflows of resources, and pension expense  estimates used to calculate the OPEB liability, the OPEB related deferred outflows and inflows of resources, and OPEB expense These estimates are based on the City’s estimated net realizable value of land and actuarial studies. We evaluated the methods, assumptions and data used to develop the estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. Determining sensitivity is subjective, however, we believe the disclosure most likely to be considered sensitive is Note 8 – Defined Benefit Pension Plans. The financial statement disclosures are neutral, consistent and clear. 24 Page 481 of 491City of Fridley, Minnesota Audit Management Letter Communication with Those Charged with Governance Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Financial Statement Adjustments Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. The uncorrected misstatements or the matters underlying them could potentially cause future period financial statements to be materially misstated, even though, in our judgment, such uncorrected misstatements are immaterial to the financial statements under audit. The adjustment identified in finding 2025-001 relating to TIF payments for $145,894 was a material adjustment detected as a result of audit procedures and was corrected by management. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 1, 2026. 25 Page 482 of 491City of Fridley, Minnesota Audit Management Letter Communication with Those Charged with Governance Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters RSI and Supplementary Information We applied certain limited procedures to the management’s discussion and analysis, the budgetary comparison information reported as RSI, the schedule of proportionate share of net pension liability, the schedule of pension contributions, OPEB related RSI, and the notes to required supplementary information which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide any assurance on that RSI. 26 Page 483 of 491City of Fridley, Minnesota Audit Management Letter Communication with Those Charged with Governance We were engaged to report on the combining and individual nonmajor fund financial statements and schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section, statistical section and other information section, which accompany the financial statements but are not RSI. Such information has 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. Restriction on Use This information is intended solely for the use of the City of Fridley’s City Council and management, and is not intended to be, and should not be, used by anyone other than these specified parties. 27 Page 484 of 491- This page intentionally left blank - Page 485 of 491 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Fridley, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of Fridley, Minnesota, as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City of Fridley, Minnesota's basic financial statements, and have issued our report thereon dated June 1, 2026. Report on Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Fridley, Minnesota’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Fridley, Minnesota's internal control. Accordingly, we do not express an opinion on the effectiveness of City of Fridley, Minnesota's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, Page 486 of 491 material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and responses as item 2025-001 that we considered to be a significant deficiency. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Fridley, Minnesota’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of Fridley’s Response to the Findings Government Auditing Standards requires the auditor to perform limited procedures on City of Fridley, Minnesota’s responses to the findings identified in our audit and described in the accompanying schedule of findings and responses. City of Fridley, Minnesota’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the responses. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Fridley, Minnesota’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Fridley, Minnesota’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 1, 2026 Page 487 of 491CITY OF FRIDLEY, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2025 2025-001 Audit Adjustments Criteria: Material audit adjustments are considered to be a deficiency in internal control as defined by auditing standards. Condition: During the audit, the following audit adjustment to the financial statements was made:  $145,894 of funds due from the HRA to the City in relation to the TIF bonds was accrued at year-end. Cause: The City’s year-end closing processes did not identify the amounts due to the City from the HRA prior to the audit. Our understanding is that turnover within the finance department may have contributed to the error. Effect: There is an increased risk that financial statement misstatements may occur and not be detected and corrected in a timely manner. Recommendation: We recommend the City continue efforts to ensure that all adjustments are identified during the year-end closing process. City Response: We have documented and incorporated this step into our regular processing in July as well as our year-end checklist of items to review in early December to ensure all transfers are completed prior to year end. This process is to be completed by the Assistant Finance Director. Page 488 of 491 MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of City Council City of Fridley, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Fridley, Minnesota as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City of Fridley, Minnesota’s basic financial statements, and have issued our report thereon dated June 1, 2026. In connection with our audit, we noted that the City of Fridley, Minnesota failed to comply with the provisions of claims and disbursements section of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters as described in the schedule of findings and responses as item 2025-002. Also, in connection with our audit, nothing came to our attention that caused us to believe that the City of Fridley, Minnesota failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City’s noncompliance with the above referenced provisions, insofar as they relate to accounting matters. Government Auditing Standards requires the auditor to perform limited procedures on the City of Fridley Minnesota’s response to the findings identified in our audit and described in the accompanying schedule of findings and responses. The City of Fridley, Minnesota’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. Page 489 of 491 The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LLC St. Paul, Minnesota June 1, 2026 Page 490 of 491CITY OF FRIDLEY, MINNESOTA SCHEDULE OF FINDINGS AND RESPONSES For The Year Ended December 31, 2025 2025-002 Prompt Payment of Local Government Bills Criteria: Minnesota State Statutes require prompt payment of local government bills. MS 471.425 Subd. 2. Reads in part: Subd. 2.Payment required. A municipality must pay each vendor obligation according to the terms of the contract or, if no contract terms apply, within the standard payment period unless the municipality in good faith disputes the obligation. … (a) For municipalities who have governing boards which have regularly scheduled meetings at least once a month, the standard payment period is defined as within 35 days of the date of receipt. Condition: During the course of our audit, we identified two invoices that were not paid timely, one from February of 2025 paid in April 2025 and August 2025 paid in September 2025. Cause: Our understanding is that there were delays in the internal approval process. Effect: The City is not in compliance with Minnesota State Statute 471.425. Recommendation: We recommend the City establish procedures to ensure all invoices are provided to finance promptly upon receipt so that payment can be issued within the statutory timeframe. Management Response: City management acknowledges the finding. The delayed payments occurred due to delays in the internal approval process and the City has since clarified that process, including responsibilities and timeliness. Page 491 of 491