--- title: 6023 2025 Ramsey Spec Purp ## author: LB CARLSON, LLP date: D:20260602074655-05'00' --- ## City of Ramsey ## Agenda ## City Council Work Session Tuesday, June 9, 2026 5:30 pm ## Lake Itasca Room, 7550 Sunwood Drive NW Remote Attendance available at www.cityoframsey.com/meetings. Those joining remotely and requesting to speak are asked to use a webcam when speaking. 1.Call to Order 2.Topics for Discussion ## 1.Discussion Regarding Implementing Online Benefits ## 2.Consider Support of Gap Assistance (Loan) and Assumption of Mortgage Agreement for ARAA Sports ## Facility Project ## 3.Review of Existing and Proposed Fiber Optic Service Providers within the City of Ramsey ## 4.Review 2025 Annual Comprehensive Financial Report, Management Report & Special Purpose Report 3.Topics for Future Discussion ## 1.Review Future Topics/Calendar 4.Mayor/Council/Staff Input 1.Update on Outside Committees 5.Adjournment* *Note: the City Council may motion to recess this Work Session meeting and reconvene after the regular City Council meeting if items on the agenda are not completed. Our Mission: To work together to responsibly grow our community, and to provide quality, cost-effective, and efficient government services 2. 1. ## CC Work Session ## Meeting Date: 06/09/2026 ## Primary Strategic Plan Initiative: Strive for high organizational morale and employee retention. ## Information ## Title: ## Discussion Regarding Implementing Online Benefits ## Purpose/Background: The purpose of this discussion is to seek approval to move ahead to the next step in automating HR processes related to employee benefits. Last June, the City Council authorized staff to add several NeoGov products, including CORE HR, E-Forms, Onboard and Perform. All of those additions have been implemented. However, these additions do not include the benefits' module which staff feels is the last step in the process. Staff is eager to bring benefits online and would like to begin online benefits now, so that it is in place for the upcoming annual open enrollment process. Online benefits administration is faster, cheaper, more accurate, and far easier for both HR and employees than paper forms, such as: Less risk of error Instant updates Automated workflows 24/7 access — Employees can enroll or update information from home, on mobile, or during open enrollment without scheduling time with HR. Clearer information — Online portals include plan comparisons, cost calculators, and FAQs that help employees make better decisions. Faster confirmation — Employees get immediate verification that their elections were submitted. Better data protection — Digital systems use encryption and access controls Audit trails — Every change is timestamped, which simplifies audits and compliance Real-time analytics — HR can see enrollment progress, participation rates, and cost projections instantly. Cleaner data — Standardized digital inputs make it easier to integrate with payroll, HRIS, and insurance carriers. The cost of NeoGov Benefits, with implementation in year one would be $9,810.87 and $6351.45 in year two. NeoGov Benefits is labor-intensive. The set-up is solely handled in-house and staff has concerns about implementing that specific module. Staff's research, demos and references that have been conducted have pointed to Integrity Benefits as the clear choice. The ongoing trusted and exceptional service provided by Integrity Benefits has lead staff to a strong recommendation to discontinue any plans for NeoGov Benefits and instead, staff recommends expanding the professional relationship with Integrity Benefits, the City's vendor for ancillary benefits, to include online benefits through PlanSource. The annual fee for online benefits with Integrity Benefits is $5760. Ramsey's HR staff also manage ACA 1095 processing. Another advantage of working with Integrity Benefits is their ability to take over that function, for virtually the same cost, which is currently done by BASIC Compliance, out of Madison, Wisconsin. That cost is currently $1440 per year. While not a significant time savior, switching to Integrity Benefits for this function eliminates HR's role in overseeing that function. ## Time Frame/Observations/Alternatives: Up to 10 minutes ## Funding Source: New revenue, brought in as a result of Ramsey's role in conducting the QCTV Executive Director recruitment, is $10,000. Staff immediately recognized the opportunity for those funds to be used toward the next phase of online human resources functions -- online benefits. This revenue more than covers the 2026 fee of $5760. On going annual costs would be included in the operating budget. ## Recommendation: Staff recommends updating to online benefits, including ACA reporting with Integrity Benefits. ## Outcome/Action: To receive City Council approval to move ahead with online benefits through Integrity Benefits, including ACA reporting. ## Attachments ## Quote ## Form Review ## InboxReviewed ByDate ## Brian HagenBrian Hagen06/04/2026 02:55 PM ## Form Started By: Colleen LasherStarted On: 06/04/2026 12:39 PM ## Final Approval Date: 06/04/2026 ## Enrollment Platform$2.50 ## EDI (File Feed)$1.50 ## Total Software Cost (PEPM)$4.00 ## No. Eligible Employees120 ## Annual Software Cost$5,760 ## Total Annual Cost$5,760 ## Also Available - ACA Manager (1095 Reporting) ## System Access (PEPM Jan.-Dec.)$1.00 ## No E-Filing Fee$0 ## Total Annual Cost - ACA Mgr.$1,440 ## Grand Total with ACA$7,200 ## Online Benefits Pricing for City of Ramsey ## Plan Source 2. 2. ## CC Work Session ## Meeting Date: 06/09/2026 ## Primary Strategic Plan Initiative: Promote economic growth and development. ## Information ## Title: Consider Support of Gap Assistance (Loan) and Assumption of Mortgage Agreement for ARAA Sports Facility ## Project ## Purpose/Background: The purpose of this case is to review a proposed revised Financing Structure to provide financial assistance (loan) to Anoka Ramsey Athletic Association (ARAA) for construction of a 100,000 square foot athletic facility. ## ARAA Project History / Finance In February 2023, the Anoka Ramsey Athletic Association (ARAA) received site plan and plat approval to construct a sports dome structure at 14600 Ferret St. NW. ARAA eventually withdrew their landuse application, and therefore, never constructed the dome. Since that time, Ramsey staff have continued to work with representatives from ARAA as they sought out a new solution for an indoor sports facility to serve their organization. ARAA has progressed through new plans to construct a facility at a different location within Ramsey. The City Council met with ARAA at the January 13, 2026 work session and reached a consensus to provide up to 2.3M in financial assistance, primarily in the form of a low interest loan. The City subsequently met at a Council Work Session on March 10th and reviewed a revised financing proposal that included a 75%/25% Debt Structure without the need for a financial guaranty with a proposed City Loan of approximately $1.43M. 2 days after the March 10 CC Work Session formal bank approval was obtained but included a requirement for a 5M financial guaranty. This guaranty was a deal killer for parties involved. ARAA has worked with 3 other banks to obtain additional financing options and received 3 proposals. The option proposed for Council consideration is included as an attachment to this case. In short, the 75/25 shifted to a 70/30 LTV ratio and the City loan and loans by other was considered equity for ARAA. The proposed City participation under the proposed financing structure would be an HRA loan of approximately $1.877M, which is still below the initial consensus of the Council supporting up to $2.3M of total assistance In January 2026. Understanding project costs could fluctuate, at the Council has previously provided consensus supporting the proposed financing structure and to give staff flexibility to go up to 2M for an HRA loan. The City has explored the use of its Ramsey HRA dollars levied in Ramsey by Anoka County in the form of a loan. In order to use the HRA funds the City must create a Redevelopment Plan for a designated area which allows the fund to be expended for eligible costs. Taft Law has put together a revised schedule showing what this process and timing would look like. The County process to access the HRA funds is separate and will be worked into the schedule. This process involves a simple resolution requesting the funds and an explanation of what the funds will be used for which was approved on May 26. Although ARAA does now have formal financing approval at this time, changes to the structure of financing have been made since the City Council last reviewed this item. The revised Term Sheet is attached for review. ## Changes to the Financing Structure CORTrust Bank has approved financing of the ARAA project contingent on the City of Ramsey Assuming the Mortgage in the event of a default by ARAA and an inability to cure that default. The City of Ramsey Assumption of Mortgage is not optional, it would be required as part of the proposed financing structure. By assuming the ARAA Mortgage the City would become the building owner. Included in the Bank Term Sheet is an Amortization Schedule showing the loan balance over the 6-year period of construction and permanent financing. Staff is asking the City Council to consider starting the City process to obtain the HRA funds and to start the creation of the Redevelopment Plan. ARAA has committed to deposit 10K in escrow to start this process. Once they receive formal bank approval, the City will also utilize HRA funds to fund the balance of legal work by TAFT. Staff is working with Taft Law on the boundaries of the Redevelopment Plan Area and hopes to include areas, in addition to the ARAA project area, such as the 167th Commercial and residential node. The reason to expand the project area is so that in the future, the payments received from ARAA can be reallocated to additional HRA eligible project expenses. A map of the area is attached. ## Notification: N/A at this time. However, the Redevelopment Plan/business subsidy process will require public hearings. ## Time Frame/Observations/Alternatives: Staff is looking for council consensus on whether or not to proceed with the proposed financing structure, adding the requirement of Assumption of Mortgage. All terms and conditions of the loan will ultimately need to be formally approved by City Council action at a later date. If consensus is reached on approval of the financing, staff is asking for direction to begin working with the bank to draft the Mortgage Assumption Agreement and City Loan documents for the City HRA Loan to be formally approved by the Council. Key Terms of the City HRA Loan and Mortgage Assumption are below: ## City EDA HRA Loan Amount – Up to 2M, Current 1.88M proposed ## Collateral – 100,000 SF Building and Real Estate Term – 5 year Amortization – 25 year Interest Rate – indexed to 10 year Treasury Note (currently 4.53%) Payments for loan (deferred one year) Paid in full, or refinanced when Balloon Payment is due for COR Trust Loan. ## ARAA / COR Trust Assumption of CORTrust Mortgage ARAA, CORTrust and City of Ramsey/EDA to execute Assumption of Mortgage Agreement to City of ## Ramsey/EDA ## Terms City of Ramsey/EDA to assume ARAA loan with CORTrust if ARAA Defaults on Loan and is unable to ## cure Default with CORTrust. (required NOT Optional) City of Ramsey/EDA has the ability to refinance any time after the assumption of a mortgage without penalty. In the event that ARAA defaults within the last 6 months of the Mortgage with CORTrust, Cor Trust will extend the mortgage for up to 6 months for the City to obtain permanent takeout financing for the balloon payment. ARAA/CORTrust to execute the transfer of real estate (including 100,000 SF Building) to City of Ramsey / EDA. City of Ramsey/EDA will obtain financing to refinance the balance of CORTrust Loan. No Obligation by City of Ramsey/EDA to lease back to ARAA. ARAA waives the right to transfer/sell to another entity other than the City of Ramsey/EDA while the Assumption Agreement is in place. ## Funding Source: 10K Escrow Account by ARAA to start TAFT Law Redevelopment Area process. (received) Balance of Legal work by City of Ramsey (HRA/EDA). Staff has reviewed City financing options and has recommended an HRA Loan (up to 2M) from Ramsey HRA funds held by Anoka County. ## Recommendation: ## Based on Discussion ## Outcome/Action: Council consensus on whether or not to proceed with the proposed financing structure adding the requirement of Assumption of Mortgage. All terms and conditions of the loan will ultimately need to be formally approved by City Council/EDA Action at a later date. ## Attachments ## Site Location Map ## CONSENSUS - Revised Bank Term Sheet ## CONSENSUS - Revised Financing Structure ## Redevelopment Plan Schedule ## Form Review ## InboxReviewed ByDate ## Brian HagenBrian Hagen06/04/2026 12:25 PM ## Form Started By: Sean SullivanStarted On: 06/01/2026 02:19 PM ## Final Approval Date: 06/04/2026 ## Site Location Map - ARAA ## 3/5/2026, 12:32:10 PM 0450900225ft 013026065m 1:4,800 ## Web AppBuilder for ArcGIS ## Financing Structure - CCWS 6-9-26 6/1/2026 ## Uses of Funds ## Proposed Financing ## UseAmount ## Notes/Change ## Construction, Soft Costs & Fees 12,849,609$ ## Payoff of Existing Land Loan 576,000$ ## Total Project Cost 13,425,609$ ## Sources of Funds ## Source Senior Construction Loan 5 yr. term 25 year amortization (70% of Total Project Cost) 9,397,926$ Assumed by City in Event of Default ## Initial Funding Gap $653,507 (Before Land Equity) -$ Solved below ## Developer Land Equity 1,370,000$ Bank Approved Appraisal ## Land Payment (Ferret Street) 20,000$ By ARAA City of Ramsey Loan % Int. indexed to 10 year Treasury Bill, 5 Year Term, 25 yr. amort 1,877,683$ HRA Loan / Redevelop Area ## Cash/Loans by Others 750,000$ Verbal Agreement by others ## Total Sources / Uses 13,425,609$ ## Contingencies / Notes ## Formal Bank Approval Required by CorTrust Bank ## Need Anoka County Approval of HRA Fund Allocation (In Process) ## Redevelopment Area Plan Required (In Process) ARAA to deposit 10K into Escrow to start Redevelopment Plan/Area Process (DONE) City required to assume ARAA Mortgage in Event of Default by ARAA 199971708v1 ## ECONOMIC DEVELOPMENT AUTHORITY ## OF THE CITY OF RAMSEY, MINNESOTA ## PROPOSED ESTABLISHMENT OF A REDEVELOPMENT PROJECT ## AREA AND THE REDEVELOPMENT PLAN THEREFOR ## (Anoka Ramsey Athletic Association) Schedule as of April 24, 2026 The pertinent dates in connection with the above referenced matter are listed below: May 14, 2026 EDA adopts Resolution Initiating Process for Establishment of a Redevelopment Plan. May 26, 2026 City adopts Resolution Initiating Process for Approval of ## Redevelopment Project Area and Calling a Public Hearing (‘Call’ for public hearing is optional, but Redevelopment Plan must be on file 10 days prior to public hearing). May 26, 2026 City adopts Resolution Initiating Request for Loan from the ## Anoka County HRA ## May 28, 2026 Planning Commission adopts Resolution Concerning Redevelopment Project Area and recommends approval to City. No later than June 13, Publish Notice of Public Hearing on Redevelopment Plan (City 2026 (not less than 10 responsibility). nor more than 30 days before hearing date) June 23, 2026 City holds a public hearing on Redevelopment Plan. June 23, 2026 City adopts Resolution Approving Redevelopment Project Area and Plan. July 9, 2026 EDA adopts Resolution Approving Redevelopment Project Area and Plan. July 9, 2026 EDA adopts Resolution approving Loan Agreement and ## Financing Documents ***Please note, the dates for Anoka County/ Anoka County HRA actions and loan process are not included. 2. 3. ## CC Work Session ## Meeting Date: 06/09/2026 ## Primary Strategic Plan Initiative: ## Not Applicable ## Information ## Title: Review of Existing and Proposed Fiber Optic Service Providers within the City of Ramsey ## Purpose/Background: ## Purpose: The purpose of this case is to review information on the number of fiber optic system services already in use within the City of Ramsey, and to provide an update on the status of Gateway Fiber’s 2026 fiber optic buildout project in the southeast corner of Ramsey. A secondary purpose is to further discuss whether City Council is interested in exploring the franchise agreement process. City Attorney Johnson will present information on the options available based on additional research of what other communities are doing. ## Background: In 2024, staff first became aware that fiber optic service lines were being installed by Comcast and Lumen in various areas of the city. At that time, staff began compiling data on the numbers and locations of existing fiber optic service lines. As of mid-May, 2026, it is staff’s understanding that over 1,700 residences and 37 businesses are receiving fiber optic service from Comcast and Lumen across the city. Staff will present additional information during work session, including known locations of properties currently being served by fiber optic within the city. Regarding the status of Gateway Fiber’s 2026 fiber optic buildout project in the southeast corner of Ramsey, staff is currently reviewing the first two (2) permit applications while working with Gateway Fiber to confirm they will conform to the construction requirements for new fiber optic buildout projects within the city as reviewed and approved by consensus by the City Council during their March 24, 2026, work session. Attached is a copy of the current construction requirements for new fiber optic buildout projects within the City of Ramsey, which has been modified only slightly following the City Council’s consensus approval. ## Recommendation: Staff recommends continued review and approval of right-of-way permit applications for Gateway Fiber’s proposed 2026 fiber optic buildout project as long as Gateway Fiber continues to conform to the city’s construction requirements. ## Outcome/Action: No action required at this time. ## Attachments ## FOBO Construction Requirements ## Form Review ## InboxReviewed ByDate ## Brian HagenBrian Hagen06/04/2026 02:14 PM ## Form Started By: Bruce WestbyStarted On: 06/04/2026 12:35 PM ## Form Started By: Bruce WestbyStarted On: 06/04/2026 12:35 PM ## Final Approval Date: 06/04/2026 It is our mission to work tog ether to responsibly g row our community, and to provide quality, cost-effective and efficient government services. ## 14199 Jasper St NW ● Ramsey, MN 55303 ## Public Works Facility 763.433.9839 www.cityoframsey.com ## Requirements for Fiber System Buildout Projects ## Right-of-Way Permitting Requirements 1. City of Ramsey utilizes ROWAY (https://ramsey.mn.roway.net/public_map.php) for right-of -way permitting. 2. ROWAY registration is required, which includes uploading insurance and performance/ restoration bonds. 3. Permit applications must include traffic control plans. 4. Work will be limited to two (2) active permits at a time. 5. Permitted work areas will be limited to the greater of 4,000 LF of fiber or 120 serviceable properties. 6. Conduct kickoff meetings in person at least two-weeks prior to submitting new ROW permit applications for new work areas. Locate meets do not qualify as kick-off meetings. 7. Provide overview maps for each new work area at least two-weeks prior to submitting new ROW permit applications for new work areas. 8. Provide proposed start and completion dates with each new ROW permit application. 9. Draw permit plans to scale and show all known municipal utilities (sanitary sewer, water, storm, streetlights), easement and right-of -way limits, street names and addresses. 10. Provide total lineal footage of fiber installations within permitted work areas. 11. Maintain a paper or digital copy of approved permit/plans on worksite at all times. ## Construction Requirements ## General 1. Allowed working hours: a. Residential areas; Monday - Friday, 8:00 am - 8:00 pm b. Commercial/Industrial areas; Monday - Friday, 7:00 am - 8:00 pm c. No activity allowed on Saturdays, Sundays, or holidays without City permission 2. Conduct weekly work coordination meetings between Contractor, Provider and City staff. 3. Underground telecommunications installer certification per State Statute 326B.198, Underground Telecommunication Infrastructure, is required. 4. When fiber crosses municipal utilities, verify depths using Minnesota Office of Pipeline Safety approved methods. Contact Public Works at 763-433-9839 prior to potholing any municipal utilities. 5. Bituminous and concrete coring/potholing requires prior City approval. 6. Road tracking must be minimized and debris must be swept up as soon as practical or within 3 hours of City notice. Contractor will be billed if City must sweep streets. 7. All vehicles used for work purposes must display company name and DOT # on each side, and must utilize 360-degree amber flashing devices while in work zones adhering to the Minnesota Temporary Traffic Control Field Manual. 8. Minimize phasing of work and number of drill crews working in an area. 9. Clearly identify all work staging areas using approved signage. 10. All trunk fiber must be installed by directional drilling/boring. 11. All fiber must be installed between 30 and 42-inches deep. 12. All fiber must be installed within drainage and utility easements (where applicable) or at the outside edge of right of ways. 13. Fiber lines crossing roadways shall be limited to 1 crossing per block. 14. Water cannot be drawn from fire hydrants without prior City approval. 15. As-built plans must be provided to City for all underground ROW work within 6 months of installation. ## Public Communications 1. Provide door hangers at each business or residence before locates and route flags are placed. Failure to notify businesses or residents in advance may result in shut down or delay of work. 2. Door hangers must provide a contact name and number for the Provider. 3. Gopher State One Call design locates must be called in before requesting ROW permits. 4. Place sign boards in work areas at least 7 calendar days prior to beginning work. 5. Notifications must detail the work being performed and restoration expectations. 6. Neighborhood letters, project information boards and project hotline must be provided to keep businesses and residents informed. 7. When Provider is contacted by the public, Provider must respond as soon as practical and provide written documentation of their discussion to the City, including dates and times, who they spoke with, and any details regarding resolution of complaints or shared documents and/or photos, as needed. New ROW permits will not be issued until all known public concerns are addressed within all previously permitted areas. ## Restoration Work 1. Restore turf in right of ways and easements as soon as possible but no later than 5 days after placing topsoil using southern boulevard seed mix in commercial areas and southern turfgrass seed mix in residential areas per most current MnDOT Seeding Manual. 2. Repair all damaged landscaping and irrigation systems resulting from work as soon as possible. 3. Repair damage to streets resulting from work per applicable city standards plates available at https://cityoframsey.com/181/Engineering. 4. Repair or replace concrete curbs, gutters and sidewalks using concrete mix matching existing sections and meeting a minimum 28-day compressive strength of 4,000 PSI. 5. Replace sidewalk panels that are cracked, chipped, or broken with a full panel. If the city replaces panels due to safety concerns, the city reserves the right to bill the contractor. 6. Restore all hard surfaces, including curb, core holes, sidewalks and trails, that are damaged by contractor within 30 days. 7. Reinstall disturbed property corners using a surveyor licensed by the State of Minnesota. 8. All restorations shall be equal to or better than the original conditions. ## Traffic Control 1. Conform to current Minnesota Manual on Uniform Traffic Control Devices and Minnesota Temporary Traffic Control Field Manual. 2. Identify Contractor providing traffic control. 3. Identify Work Zone Safety Coordinator. 4. Traffic control should only be installed while actively working in the area and removed upon completion. Devices must be removed from the roadway and faced away from traffic when not in use. 5. No road closures are allowed without prior approval from City. ## Erosion Control 1. Erosion control measures employed on site must conform to most current MnDOT standards. 2. Erosion control measures must remain in place while actively working in area and must be removed upon completion of work and/or upon 70-percent turf establishment following City verification. ## Temporary Pedestrian Access Routes 1. When a sidewalk or trail is blocked or closed in a work area, a temporary pedestrian access route (TPAR) must be provided in accordance with MnDOT’s Pedestrian Accommodations through Work Zones Design Guidance. City approval is required before placing signage. ## School Zones 1. The Contractor may not block any sidewalk or trails adjacent to schools during school hours and/or 1 hour prior to and after school hours. ## Severe Weather 1. Active work shall be suspended during inclement or severe weather that may impact the visibility of pedestrians and drivers. ## Emergency Responders 1. Maintain access to all properties and streets during construction and maintain a minimum 11-foot drive lane for emergency vehicle access. 2. Contractor must not impede or interfere with Emergency Responders while in work areas. 2. 4. ## CC Work Session ## Meeting Date: 06/09/2026 ## Primary Strategic Plan Initiative: Identify and implement operational efficiencies, cost savings and additional funding sources. ## Information ## Title: Review 2025 Annual Comprehensive Financial Report, Management Report & Special Purpose Report ## Purpose/Background: The City's 2025 annual report has been completed. Aaron Nielsen from the auditing firm of LB Carlson will be present to review the 2025 Annual Comprehensive Financial Report and Management Report that provides auditor's comments on audit process and the Special Purpose Audit Reports on internal controls and legal compliance. Mr. Nielsen will also be making a brief presentation of the audit report at the regularly scheduled council meeting. The receipt of the 2025 Annual Comprehensive Financial Report and the request for submittal of the Annual Comprehensive Financial Report to the Governmental Finance Officers Association for the Certificate of Achievement in Financial Reporting has been placed on the Consent Agenda of tonight's meeting. ## Time Frame/Observations/Alternatives: 20 to 30 minutes. This item should be started no later than 6:30 P.M. ## Funding Source: Auditing services are funded under the finance department's budget. ## Recommendation: Presentation of the summarization of the Annual Comprehensive Report, Management Report and Special Purpose Report. ## Outcome/Action: Presentation of the summarization of the Annual Comprehensive Report, Management Report and Special Purpose Report. ## Attachments ## 2025 Annual Comprehensive Financial Report ## 2025 Management Report ## 2025 Special Purpose Reports ## Form Review ## InboxReviewed ByDate ## Brian HagenBrian Hagen06/04/2026 10:31 AM ## Form Started By: Diana LundStarted On: 05/22/2026 12:51 PM ## Final Approval Date: 06/04/2026 ## Minnesota ## Annual Comprehensive ## Financial Report ## Year Ended December 31, 2025 2 ## CITY OF RAMSEY ## ANOKA COUNTY, MINNESOTA ## Annual Comprehensive Financial Report ## Year Ended December 31, 2025 Prepared by ## Finance Department ## Diana Lund ## Finance Director 3 ## PAGE INTENTIONALLY LEFT BLANK 4 ## Page ## INTRODUCTORY SECTION ## City Council and Other Officials 9 ## Organizational Char t 11 ## City Goals/Imperatives, Measures of Success and Core Values 13 ## Letter of Transmitta l15–17 ## Certificate of Achievement for Excellence in Financial Reporting 19 ## FINANCIAL SECTION ## INDEPENDENT AUDITOR’S REPORT 23–25 ## MANAGEMENT’S DISCUSSION AND ANALYSIS 27–36 ## BASIC FINANCIAL STATEMENTS ## Government-Wide Financial Statements ## Statement of Net Position 39 ## Statement of Activities 41 ## Fund Financial Statements ## Governmental Funds ## Balance Sheet 42–43 R e c onc ilia tion of the B a la nc e She e t to the Sta te me nt of N e t P os itio n 45 ## Statement of Revenue, Expenditures, and Changes in Fund Balances 46–47 R e c onc ilia tion of the Sta te me nt of R e ve nue , Expe nditur e s , a nd ## Changes in Fund Balances to the Statement of Activities 49 ## Statement of Revenue, Expenditures, and Changes in Fund Balances – ## General Fund – Budget and Actua l 51 ## Proprietary Fund ## Statement of Net Position 52–53 ## Statement of Revenue, Expenses, and Changes in Net Position 54–55 ## Statement of Cash Flows 56–57 ## Fiduciary Funds ## Statement of Fiduciary Net Position 59 ## Statement of Changes in Fiduciary Net P ositio n 59 ## Notes to Basic Financial Statements 61–95 ## REQUIRED SUPPLEMENTARY INFORMATION ## P ERA – General Employees Retirement Fund Sc he dule of City’ s a nd N one mploye r P r opor tiona te Sha r e of N e t P e ns ion Lia bilit y99 ## Schedule of City Contributions99 ## P ERA – P ublic Employees Police and Fire Fund Sc he dule of City’ s a nd N one mploye r P r opor tiona te Sha r e of N e t P e ns ion Lia bilit y100 ## Schedule of City Contributions100 ## Other Post-Employment Benefits Plan-Schedule of Changes in the City's Tota l O P EB Lia bility a nd R e la te d R a tios101 ## Notes to Required Supplementary Information-General Employees Retirement Fund102-105 ## Notes to Required Supplementary Information-Public Employees Police and Fire Fund 106-109 ## CITY OF RAMSEY ## ANOKA COUNTY, MINNESOTA Table of Conte nts 5 ## Page ## COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES ## Nonmajor Governmental Funds C ombining B a la nc e She e t113 ## Combining Statement of Revenues, Expenditures, and Changes in Fund Balances115 ## Nonmajor Special Revenue Funds C ombining B a la nc e She e t118–119 ## Combining Statement of Revenues, Expenditures, and Changes in Fund Balances120–121 ## Schedule of Revenue, Expenditures, and Changes in Fund Balances ## Economic Development Authority – Budget and Actua l123 ## Nonmajor Debt Service Funds C ombining B a la nc e She e t126–127 ## Combining Statement of Revenues, Expenditures, and Changes in Fund Balances128–129 ## Nonmajor Capital P rojects Funds C ombining B a la nc e She e t132–133 ## Combining Statement of Revenues, Expenditures, and Changes in Fund Balances134–135 ## STATISTICAL SECTION (UNAUDITED) ## Statistical Section Summar y139 ## Net P osition by Component140 ## Changes in Net Position141 ## Governmental Activities Tax Revenues by Source142 ## Fund Balances of Governmental Funds143 ## Changes in Fund Balances of Governmental Funds14 4 ## General Government Tax Revenues by Source145 Tax Capacity, Market Value, and Estimated Actual Value of Taxable P roperty146 ## P roperty Tax Rates – Direct and Overlapping Governments147 ## Principal Property Taxpayers 148 ## Property Tax Levies and Collections149 ## Ratios of Outstanding Debt by Type150 ## Ratios of General Bonded Debt Outstanding151 ## Direct and Overlapping Governmental Activities Deb t152 Le ga l D e bt Ma r gin I nf or ma tion153 ## Demographic and Economic Statistics15 4 P rinc ipa l Employe rs155 ## Full-Time Equivalent City Government Employees by Function156 ## Operating Indicators by Function157 ## Capital Asset Statistics by Function158 ## CITY OF RAMSEY ## ANOKA COUNTY, MINNESOTA Table of Conte nts (continue d) 6 ## INTRODUCT ## ORY SECTION 7 ## PAGE INTENTIONALLY LEFT BLANK 8 ## Ryan Heineman ## Mayor ## Kirsten Buscher ## Councilmember ## Michael Olson ## Councilmember ## Eric Peters ## Councilmember ## Councilmember ## Councilmember ## Councilmember ## Brian HagenCity Administrator ## Brad Bluml P olic e C hie f ## Stephanie Hanson ## Community Development Director ## Matthew Kohner ## Fire Chief/Emergency Management Director ## Colleen Lasher ## Administrative Services Director ## Diana Lund ## Finance Director ## Bruce Westby ## City Engineer/P ublic Works Director ## CITY OF RAMSEY ## ANOKA COUNTY, MINNESOTA ## City Council and City Officials ## Year Ended December 31, 2025 ## Chris Riley ## DEPARTMENT HEADS ## CITY COUNCIL ## CITY OFFICIALS ## Dan Specht ## Shanna Stewart 9 ## PAGE INTENTIONALLY LEFT BLANK 10 ## Residents ## Mayor & Council ## City Administrator ## Organizational ## Chart ## Charter ## Commission ## Consulting Services ## City Attorney ## Auditor ## Administrative ## Services ## City Clerk (.80) ## Administrative ## Services Director (1) ## HR Generalist (1)HR Specialist (1) ## Communications Coordinator (1) ## Administrative Clerk (1) ## BOARDS & COMMISSIONS ## Economic Development ## Environmental Policy Board ## Parks & Recreation ## Commission ## Planning Commission ## Police ## Police Chief (1) ## Patrol Captain (1) Sergeant (5)Patrol (16) ## Community Service Officers (2.24) Reserves (10) Explorers (12) ## Admin Captain (1) ## Investigator/ ## Patrol Officers (3) ## Drug Task Force/ ## Patrol Officer (1) ## Community Resource ## Patrol Officers (2) ## Officer Supervisor (1) ## Lead Police Technician (1) ## Police Data Analyst (1)Police Technician (3.13) January 2026 ## Finance and IT ## Finance Director (1) ## IT Manager (1) ## Security Administrator (1) ## IT Systems Specialist (1) ## Assistant Finance Director (1) ## Accountant I (1)Accounting Clerk (1)Accountant II (1) ## Community ## Development ## Community ## Development Director (1) ## Building Official (1) ## Planning Manager (1) ## Economic Development Manager (1) ## Building Inspector (2)Permit Tech I (.5)BI Admin Assistant (1) ## ED Admin Assistant (.70) ## Senior Planner (1) ## City Planner (1) ## Zoning Code ## Enforcement Officer (1) ## Planning Admin Assistant (1) ## Permit Tech II (1) ## Rental Housing Inspector (1) ## Assistant City Engineer (1) ## Water Resources Technician (1) ## Senior Engineering Technician (1) ## Engineering ## Technician III (1) ## Engineering ## Admin Assistant (1) ## Other Contractors ## Engineering ## Technician II (2) ## Engineering ## City Engineer (1) ## Public Works ## Public Works Director (1) ## Building Maintenance Supervisor (1) ## Building Maintenance Workers (3.63) ## Streets Supervisor (1) ## Streets Lead (1) ## Streets Maintenance Workers (8) Mechanics (2) ## Parks Supervisor (1)Parks Lead (1) ## Parks Maintenance Workers (8) ## Parks & Assistant ## PW Director (1) ## Recreation Coordinator (1) ## Parks ## Admin Assistant (1) ## Utilities Supervisor (1) ## Utilities Lead (1) ## Utilities Maintenance Workers (4) ## Public Works ## Admin Assistant (1) ## Lead Mechanic (1) ## Fire ## Fire Chief/ ## Emergency ## Management Director (1) ## Deputy Fire Chief of Operations & Logistics (1) ## Deputy Chief of Training (1) ## Station Captains (2 Paid-On-Call) ## Paid-On-Call Firefighters Station #1 (24) Station #2 (24) ## Station Lieutenants (2 Paid-On-Call) ## Fire Marshal (1) ## Training Lieutenant (1 Paid-On-Call) ## Fire Technician/ Firefighter (1) ## Fire Inspector (1) 11 ## PAGE INTENTIONALLY LEFT BLANK 12 ## Goals/Imperatives ## Financial Stability Ensure strategic economic development that complements the City’s desired quality of life and builds a stable tax base, all w hile maintaining a low tax levy. ## A Balance of Rural Character & Suburban Growth Continue to respect the balance and connectivity between our unique suburban, rural, and natural envi ronment for current and future generations. ## An Active, Connected & Engaged Community Ensure that the City is a connected City that is part of a comprehensive regional transportation system that enables all to easily navigate the community and attracts business development. ## Citizen-Focused Government Continue the delivery of quality services to ensure the City will have safe and thriving neighborhoods and business districts, and a clean environment. ## An Effective & Efficient Organization Maintain a highly functional staff, citizen volunteers, and elected officials and governance structure that meets the ever-changing, increasing needs of the organization. ## Measures of Success In order to achieve its mission, the City must be accountable. The City defined what success will look like: The City will look at a “Balanced Scorecard” of financial, internal, external and stakeholder metrics in order to measure success. The City will regularly measure and assess stakeholder satisfaction. The City leadership and staff will hold themselves accountable for results. The City will regularly report back to stakeholders about progress toward results. ## Core Values ## Ethics and Integrity ## Fiscal Responsibility ## Cooperation and Teamwork ## Open and Honest Communications Excellence and Quality in the ## Delivery of Servic e ## Serving People with Respect and Fairness ## Adaptab ility and Continuous Learning 13 ## PAGE INTENTIONALLY LEFT BLANK 14 ## 7550 Sunwood Drive NW • Ramsey, Minnesota 55303 City Hall: 763-427-1410 • Fax: 763-427-5543 www.cityoframsey.com June 1, 2026 ## Honorable Mayor, Members of the City Council and Citizens of the City of Ramsey ## City of Ramsey, Minnesota The annual comprehensive financial report of the City of Ramsey, Minnesota (the City) for the fiscal year ended December 31, 2025 is hereby submitted. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the City. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included. Minnesota Statutes and the City Charter require an annual audit of all accounts, financial records, and transactions of the City by independent certified public accountants. The accompanying financial statements have been audited by the firm of LB Carlson, LLP, Independent Certified Public Accountants. The firm is engaged by the City Council to render an opinion on the City’s financial statements in accordance with accounting principles generally accepted in the United States of America, and an unmodified opinion has been issued. The independent auditor’s report is located at the front of the financial section of this report. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analyis 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 can be found immediately following the report of the auditors. ## PROFILE ## OF THE CITY Ramsey is located in the southwestern part of Anoka County and is situated approximately 25 miles from Minneapolis. The City has 28.8 square miles within its corporate boundaries and is bordered by two major rivers, the Mississippi River along the southern border and the Rum River along the east. Ramsey was incorporated as a city in 1974, and is organized as a Home Rule City under a City Charter originally adopted in 1984. The City Council consists of a Mayor and six Councilmembers, and is elected on a nonpartisan basis. Elections are held in November of each even numbered year. The terms of office are four years for the Mayor and four years for Councilmembers. The City Council is responsible for enacting ordinances, resolutions, and regulations governing the City, and appointing the City Administrator, City Attorney, and members of the various advisory boards and commissions. Because the City Council acts as the Board of Directors of the Ramsey Economic Development Authority (EDA) this organization is included as a blended component unit in these financial statements. 15 The City provides a variety of municipal services. These include a full-time police department, a volunteer fire department, engineering services, street and park maintenance, building inspections, planning and zoning, public improvements, general administrative services, and public water and sewer utilities in the urban service areas. The City adopts an annual budget for the General Fund and the EDA Special Revenue Fund. Legal level of control is at the function level. Department heads may transfer resources within a function as they see fit. Transfers between functions, however, need special approval from the City Council. ## LOCAL ECONOMY The City has an unemployment rate of 4.3% in comparison to the state average of 4.3%. Ramsey has an employed labor force of 15,863. Anoka County, in which Ramsey is located, has an employed labor force of 207,107 and an unemployment rate of 4.1%. The median household income is $116,415. There are approximately 10,726 housing units in the City. The median home value is $388,141. In addition, there were 179 new single-family homes and 50 multi-family housing units with a valuation of $71.6 million constructed in 2025. The new 133-unit Skyline Apartment on Sunwood opened in the fall of 2025. The apartment complex includes 12,000 square feet of retail space on the first floor. T Sharp hair salon is the first lessee and will be opening in the spring of 2026. A few of the other housing projects that were authorized in 2025 include Riverstone 6 th addition with 14 single family homes, Rivenwick Village 4 th addition with 27 townhomes, Brookside Terrace with 6 single family homes and O’Shaughnessy 3 rd addition with 4 single family homes. Six hundred and twenty-six businesses call Ramsey home; those businesses employ nearly 7,534 people. Six new commercial permits were issued in 2025 with a permit valuation of $18.6 million. Some of the commercial projects completed in 2025 were Complete Auto Service, H2O Innovation USA, MKP Motors, True North Outdoor Services, HHH Pediatric Therapy, Lightbridge Academy Day Care, Blue Lagoon Hot Tubs, Beeline Plumbing and Zero Zone expansion. The City also saw new hospitality/entertainment development with the addition of SUR by Vita Bella Restaurant, Taco Bell (the 100 th store in Minnesota). King Baguette, Home 2 Suites by Hilton, and In the Game Pickleball and Golf. A Chipolte restaurant is set to open in the spring of 2026. The City has three major industrial districts containing multiple business parks with a combined capacity of over 500 acres and 70 industrial/office buildings. Bunker Lake Industrial Park, the newest 115-acre business park, west of Armstrong Boulevard, opened in 2018 and now has 984,000 square feet of industrial buildings constructed and has over 50 acres left for development. Upon completion, this business park is estimated to generate around three million dollars in annual property taxes and create about 1,500 jobs. In addition, the city is actively developing a city center known as The COR (Center of Ramsey). The development vision for this 400-acre area located in the heart of Ramsey is for it to become the region’s center of retail, restaurants, service and office space, outdoor entertainment and parks, community amenities and housing. ## LONG-TERM FINANCIAL PLANNING The City of Ramsey prepares a ten-year capital improvement plan in an attempt to anticipate major capital expenditures in advance of the year in which they are budgeted. The City has a policy to maintain unassigned General Fund balance in an amount equal to 50% of the following years adopted operating budget, plus prior year encumbrances (if any). This policy is designed to establish a fund balance at a level which is sufficient to avoid issuing debt to meet current operating needs. 16 ## RELEVANT FINANCIAL POLICIES The City has a comprehensive set of financial policies that provide the basic framework for the overall fiscal management of the City. The City had no unusual occurrences affecting these policies. ## MAJOR INITIATIVES The City concluded working with the State and County in what is termed the Ramsey Gateway Project. The Ramsey Gateway Project provides grade separations of US Highway 10/169 and the BNSF Railway. Highway 10 improvements at Sunfish Lake and Ramsey Boulevard were part of the project plan. This was an $138 million project that had nine different state and local funding sources. The Sunfish Lake interchange was completed and in full operation in mid-November 2024 with the Ramsey Boulevard interchange in operation in the fall of 2025. Ramsey's contribution to the project was $4,000,000. With the Ramsey Gateway Project completed, the focus now shifts to redevelopment opportunities on parcels that were purchased for right of way under an old design that can now be sold back to the private market. A water treatment plant was substantially completed in late winter 2025. Major construction, along with the installation of trunk watermain coru'iections were undertaken in 2024. The plant with a total construction cost of $39 million, which included trunk watermain construction, will treat 10 million gallons per day. The Waterfront Park in the COR area is to be the home of an approximately $4 million water-play area which will include a splash pad, a fishing pier and a prefab restroom. July, 2026 is the target date for opening. ## CERTIFICATE OF ACHIEVEMENT The Governrnent Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting (CAEFR) to the City for its Annual Comprehensive Financial Report for the year ended December 31, 2024. This was the thirty-first year the City has received this prestigious award. Also, the City had previously received the award from 1981 through 1988, after which the City did not participate in the program for several years. The CAEFR is valid for a period of one year only. We believe our current Annual Comprehensive Financial Report continues to meet the CAEFR Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ## ACKNOWLEDGMENT The 2025 Annual Comprehensive Financial Report of the City meets the highest professional standards and was prepared in a timely and cost-effective manner. This could never have been accomplished without the excellent work of the entire Finance Department. We would like to express our appreciation to the Finance Department and all members of the City's staff who contributed to its preparation. Respectfully submitted, ## Brian Hagen ## City Administrator ## Diana Lund ## Finance Director 17 ## PAGE INTENTIONALLY LEFT BLANK 18 ## Government Finance Officers Association Certificate of Achievement for Excellence in ## Financial ## Reporting Presented to ## City of Ramsey ## Minnesota ## For its Annual Comprehensive ## Financial ## Report for the Fiscal Year ## Ended December 31, 2024 ## Executive Director/CEO 19 ## PAGE INTENTIONALLY LEFT BLANK 20 ## FINANCIAL SECTION 21 ## PAGE INTENTIONALLY LEFT BLANK 22 ## INDEPENDENT AUDITOR’S REPORT ## To the City Council and Management ## City of Ramsey, 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, each major fund, and the aggregate remaining fund information of the City of Ramsey, Minnesota (the City) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of December 31, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof, and the budgetary comparison for the General Fund for the year then ended, in accordance with accounting principles generally accepted in the United States of America. ## BASIS FOR OPINIONS We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. ## RESPONSIBILITIES OF MANAGEMENT FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statements date, including any currently known information that may raise substantial doubt shortly thereafter. (continued) 23 ## 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 judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government ## Auditing Standards, we: •Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. ## REQUIRED SUPPLEMENTARY INFORMATION Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the required supplementary information (RSI), 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 RSI 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. (continued) 24 ## SUPPLEMENTARY INFORMATION Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual fund statements and schedules, as listed in the table of contents, are presented for the purpose 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. ## OTHER INFORMATION Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. ## OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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’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’s internal control over financial reporting and compliance. Respectfully submitted, ## LB CARLSON, LLP ## Minneapolis, Minnesota June 1, 2026 25 ## PAGE INTENTIONALLY LEFT BLANK 26 ## CITY OF RAMSEY ## Management’s Discussion and Analysis ## Year Ended December 31, 2025 As management of the City of Ramsey, Minnesota (the City), we have provided readers of the City’s financial statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2025. The discussion and analysis is intended to be considered in conjunction with the additional information that we have furnished in our letter of transmittal, located earlier in this report, and the City’s financial statements contained within this report. ## FINANCIAL HIGHLIGHTS •The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at December 31, 2025 by $271,861,837 (net position). •Government-wide revenues totaled $57,133,346 and were $20,159,402 more than expenses. •As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $57,685,204 a decrease of $1,857,629 from the prior fiscal year, largely attributed to the continued reconstruction of city streets via the City’s Pavement Management Program. •At the end of the current fiscal year the General Fund equity balance of $14,462,749 included $26,466 of nonspendable fund balance and $14,436,283 of unassigned fund balance. ## OVERVIEW OF THE FINANCIAL STATEMENTS Management’s Discussion and Analysis (MD&A) is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other 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 private sector businesses. The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows, as applicable, (excluding Fiduciary Funds), with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., delinquent taxes and special assessments). Both of the government-wide financial statements distinguish functions of the City that are principally supported by property taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). 27 ## OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) The governmental activities include general government, public safety, highways and streets, culture and recreation, and economic development. The business-type activities of the City include enterprises for water, sewer, street light, recycling, and storm water utilities. 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. The funds of the City are 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 the balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of Governmental Funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for Governmental Funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the Governmental Funds balance sheet and the statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between Governmental Funds and governmental activities. The fund financial statements present information for each Major Governmental Fund in separate columns. Data from the Nonmajor Governmental Funds are combined into a single, aggregated presentation. Individual Fund data for each of these Nonmajor Governmental Funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for the General Fund and the Economic Development Authority Special Revenue Fund. Budget-to-actual comparisons are provided in this financial report for these funds. Proprietary Funds – The City maintains two different types of Proprietary Funds. Enterprise Funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses one Internal Service Fund to accumulate and allocate insurance costs internally among the various city functions. Because the Internal Service Fund is predominantly used by governmental functions, it is included within governmental activities in the government-wide financial statements. Fiduciary Funds – Fiduciary Funds are used to account for resources held for the benefit of parties outside of the City. Fiduciary Funds are not reflected in the government-wide financial statements because the resources for 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. Notes to Basic Financial Statements – The notes to basic financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other Information – In addition to the basic financial statements and accompanying notes, the financial section also presents required supplementary information, and the combining and individual fund statements and schedules (presented as supplementary information) referred to earlier in connection with nonmajor governmental funds, which are presented immediately following the basic financial statements. 28 ## OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Further, a statistical section has been included as part of the annual comprehensive financial report to facilitate additional analysis, and is the third and final section of the report. ## GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $271,861,837 at December 31, 2025. Total net position increased by $20,159,402 from current year operating results. By far, the largest portion of the City’s net position (72 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, infrastructure, and equipment), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is a summary of the City’s net position: 202520242025202420252024 Current and other assets64,587,872$ 66,922,957$ 27,075,972$ 32,966,160$ 91,663,844$ 99,889,117$ Capital assets, net of depreciation119,556,986 111,196,429 114,179,524 97,821,087 233,736,510 209,017,516 Total as s ets184,144,858$ 178,119,386$ 141,255,496$ 130,787,247$ 325,400,354$ 308,906,633$ Deferred outflows of resources OPEB plan deferments794,118$ 899,946$ –$ –$ 794,118$ 899,946$ Pension plan deferments4,964,317 6,174,804 149,572 111,213 5,113,889 6,286,017 Total assets5,758,435$ 7,074,750$ 149,572$ 111,213$ 5,908,007$ 7,185,963$ Liab ilities Cu rren t an d o t h er liab ilities4,050,369$ 4,119,931$ 2,236,794$ 2,319,569$ 6,287,163$ 6,439,500$ Long-term liabilities44,647,118 48,048,879 362,265 370,664 45,009,383 48,419,543 To tal liab ilit ies48,697,487$ 52,168,810$ 2,599,059$ 2,690,233$ 51,296,546$ 54,859,043$ Deferred inflows of res ources Leases receivable for subsequent years987,781$ 1,178,551$ –$ –$ 987,781$ 1,178,551$ OPEB plan deferments501,015 552,416 –– 501,015 552,416 Pension plan deferments6,433,677 7,553,769 227,505 246,382 6,661,182 7,800,151 Total deferred inflows of resources7,922,473$ 9,284,736$ 227,505$ 246,382$ 8,149,978$ 9,531,118$ Net p o s itio n Net inves tment in capital as s ets82,689,945$ 72,783,568$ 112,202,886$ 95,749,335$ 194,892,831$ 168,532,903$ ## R es t ricted11,974,763 14,022,396 – – 11,974,763 14,022,396 Unres tricted38,618,625 36,934,626 26,375,618 32,212,510 64,994,243 69,147,136 Total net pos ition133,283,333$ 123,740,590$ 138,578,504$ 127,961,845$ 271,861,837$ 251,702,435$ ## Governmental ActivitiesBusiness-Type ActivitiesTotal The City’s financial position is the product of many factors. For example, the determination of the City’s net investment in capital assets involves many assumptions and estimates, such as current and accumulated depreciation amounts. A conservative versus a liberal approach to depreciation estimates, as well as capitalization policies, will produce a very significant difference in the calculated amounts. 29 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) The City has taken a conservative financial approach, carefully analyzing revenues and expenditures/expenses to assure operation of a balanced budget. The ongoing management of revenue and expenditures/expenses has resulted in a high-quality bond rating. The City’s AA+ bond rating was last reaffirmed by Standard and Poor’s (S&P) in October 2023. This has also allowed the City to continue to provide quality public services at a tax rate that is affordable. At the end of the current fiscal year, the City reported 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. Changes in the City’s proportionate share of state-wide pension obligations contributed to the differences in amounts presented as deferred outflows, noncurrent liabilities, and deferred inflows in the previous table. Ongoing construction and reconstruction of City streets, spending for a new water treatment plant, and its respective trunk watermain improvements increased capital assets and the net investment in capital assets portion of net position, while reducing current and other assets. The following is a summary of the City’s changes in net position: 202520242025202420252024 ## Revenues Program revenues Ch arg es fo r s erv ices2,995,895$ 3,155,387$ 8,502,169$ 7,656,188$ 11,498,064$ 10,811,575$ Operating grants and co n trib u tio n s1,344,633 996,098 70,390 88,200 1,415,023 1,084,298 Capital grants and co n trib u tio n s9,265,973 9,887,748 6,732,029 7,812,542 15,998,002 17,700,290 General revenues Pro p erty taxes23,699,395 23,041,341 – – 23,699,395 23,041,341 General grants and contributions135,308 3,760 – – 135,308 3,760 In v es tmen t earn in g s2,084,759 2,530,184 2,243,120 1,940,725 4,327,879 4,470,909 Gain o n s ale o f cap it al as s et s59,675 94,090 – – 59,675 94,090 To tal rev en u es39,585,638 39,708,608 17,547,708 17,497,655 57,133,346 57,206,263 ## Expenses General government6,126,045 5,645,480 – – 6,126,045 5,645,480 Pu b lic s afety9,597,991 8,894,134 – – 9,597,991 8,894,134 Hig h way s an d s treets9,194,282 7,783,629 – – 9,194,282 7,783,629 Cu ltu re an d recreatio n2,682,150 2,430,888 – – 2,682,150 2,430,888 Economic development1,342,690 1,488,674 – – 1,342,690 1,488,674 In teres t 1, 134,749 1,317,942 – – 1,134,749 1,317,942 W at er u t ilit y– – 2,360,896 2,243,736 2,360,896 2,243,736 Sewer u t ilit y– – 2,539,590 2,411,209 2,539,590 2,411,209 St reet lig h t u t ilit y– – 216,126 167,123 216,126 167,123 Recy clin g u t ilit y– – 580,435 549,993 580,435 549,993 St o rm wat er u t ilit y– – 1,198,990 1,022,935 1,198,990 1,022,935 To tal exp en s es30,077,907 27,560,747 6,896,037 6,394,996 36,973,944 33,955,743 Change in net position b efo re tran s fers9,507,731 12,147,861 10,651,671 11,102,659 20,159,402 23,250,520 Tran s fers35,012 (694,468) (35,012) 694,468 – – Ch an g e in n et p o s itio n9,542,743 11,453,393 10,616,659 11,797,127 20,159,402 23,250,520 Net position Beg in n in g123,740,590 112,287,197 127,961,845 116,164,718 251,702,435 228,451,915 En d in g133,283,333$ 123,740,590$ 138,578,504$ 127,961,845$ 271,861,837$ 251,702,435$ ## TotalGovernmental ActivitiesBusiness-Type Activities 30 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) Governmental Activities – Governmental activities account for a $9,542,743 increase in the City’s net position. Capital grants and contributions decreased by $621,775 due to a decrease in park dedication contributions. Operating grants and contributions increased by $348,535 as the City received $316,780 from the State of Minnesota in 2025 for a new program known as the Local Affordable Housing Aid. Investment earnings decreased $445,425. The City is required per the Governmental Accounting Standards Board to reflect most investments at fair value as of December 31 st of the current year. The City reflects any changes in fair value against interest earnings. The City also saw a decrease on the interest collected on internal loans. Property taxes saw an increase of $658,054 or 3% which was the net effect of the City increasing their 2025 tax levy by approximately 8% over the 2024 adopted levy, but lower property tax collections due to the abatement of 2024 market valuations on several properties. Charges for services decreased by $159,492 as the City reduced the annual rental license fees in 2025. Expenses for the general government function increased by $480,565 due largely to personnel costs. The public safety function increase of $703,857 was also attributed to personnel costs. Highways and streets expense increased by $1,410,653 due to an increase in the number of street maintenance projects. Culture and recreation increased $251,262 due largely to the improvements of playground equipment. The economic development function decreased by $145,984 due to a decrease of expenses in the COR area. Interest had a decrease of $183,193 for payment of debt service. Business-Type Activities – Business-type activities, which are the City’s utility operations of water, sewer, street light, recycling, and storm water, increased the City’s net position by $10,616,659. Key elements of this increase are as follows: • Charges for services increased by $845,981 from the prior year. This is primarily due to an increase in collections from quarterly utility billing collections related to the water, sewer and storm water utility. • Capital grants and contributions decreased $1,080,513. In 2024, the City had received a $3.2 million dollar state grant for the construction of a water treatment plant. • Investment earnings increased $302,395. The city is required per the Governmental Accounting Standards Board to reflect most investments at fair value as of December 31 st of the current year. The city reflects any changes in fair value against interest earnings. Governmental Activities – The following graph illustrates the City’s governmental activities: ## Program Revenues and Expenses – Governmental Activities $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $1 0, 000 ,0 00 ## General ## Government ## Public Safety Highways and Streets Culture and ## Recreation ## Economic D evelo pm ent ## Interest ## Program RevenuesExpenses 31 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) The graph clearly reflects the need for property taxes to supplement the governmental activities of the City. The trend of property taxes shows an increasing reliance on this source of revenue. Governmental Activities – The following chart illustrates the City’s governmental activities revenues: ## Revenue by Source – Governmental Activities Ca pi tal grants and co ntri b utions 23.41% Ope ra ting gra nts and contri butions 3.40% Ga i n on sale of capital assets 0.15% ## General gra nts and co n tri butions 0.34% ## Investment earnings 5.26% Ch a rge s fo r services 7.57% Prope rty ta xe s 59.87% Business-Type Activities – The following graph illustrate the City’s business-type activities: ## Program Revenues and Expenses – Business-Type Activities $– $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 ## WaterSewerStreet LightRecyclingStorm Water ## Program RevenuesExpenses 32 ## GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED) Business-Type Activities– The following graph illustrate the City’s business-type activities revenues: ## Revenues By Source –Business-Type Activities Ca pi tal Grants and ## Contributions 38.36% Ope ra ting Grants and ## Contributions 0.40% ## Investment Ea rni ngs 12.79% Ch a rge s for ## Services 48.45% Capital grants and contributions (38.36%) and charges for services (48.45%) are the main sources of revenue for the business-type activities, which represent the utility funds. Investment earnings (12.79%) resulted from returns from stable interest rates. ## FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds– At the end of the fiscal year, the City’s Governmental Funds reported combined ending fund balances of $57,685,204, a decrease of $1,857,629 in comparison with the prior year. The decrease is largely attributed to current year operating and capital spending of resources. The General Fund reported a fund balance increase of $1,138,376 in the current year. The increase is attributed to the City’s fund balance policy which states that ending fund balance shall be equal to fifty percent (50%) of the next years adopted operating budget, plus prior-year encumbrances (if any). The favorable revenue variance helped the City to meet the fund balance policy goal. General Fund –The General Fund operating results can be summarized as follows: Original andOver (Under)Percent Over ## Final BudgetActualBudget(Under) Budget Rev en u e19,490,216$ 20,688,086$ 1,197,870$ 6.15% Exp en d itu res20,373,610 19,309,070 (1,064,540) -5.23% Excess (deficiency) of revenue o v er exp en d itu res(883,394) 1,379,016 2,262,410 Oth er fin an cin g s o u rces (u s es )883,394 (240,640) (1,124,034) Net change in fund balances–$ 1,138,376 1,138,376$ Fund balances Beg in n in g o f y ear13,324,373 En d o f y ear14,462,749$ 33 ## FINANCIAL ANALYSIS OF THE CITY’S FUNDS (CONTINUED) ## General Fund Budgetary Highlights The City does not formally amend its original budget during the calendar year except for extraordinary circumstances. Budget to actual reports are presented monthly to City Council and responsible staff. Actual revenues exceeded budgeted revenues by $1,197,870. The majority of the variance was attributed to conservative budgeting with most sources surpassing budget expectations. The largest variances occurred in licenses and permits ($486,014) due to an increase in building construction and charges for services ($433,238) with more development activity than anticipated. The difference between the final expenditure budget and actual was $1,064,540. All current functions came in underbudget due to several individual line items within each function spending less than originally requested. Final budget numbers are based on past history and expected needs. Overall fund balance increased by $1,138,376 to an ending fund balance of $14,462,749. The city’s ending fund balance increase of $1,138,376 is determined by its fund balance policy which for the year ending is summarized: x $1,207,995 increase based on 50% increase in next years adopted budget x $(69,619) decrease in prior year encumbrances relate to personal costs and general liabilities. Tax Increment Fund – This Special Revenue Fund had a year-end fund balance of $2,780,887 which reflects a decrease of $581,626 from 2024. The decrease was largely due to economic development spending and transfers to several funds that contributed to the development of the COR area. COR Land Fund – This Special Revenue Fund decreased $1,632,075 to a year-end fund balance of $6,965,191. The decrease was attributed to transfers to the Park Improvement Fund for the construction costs of the Draw Park. Private Developer Fund – This Special Revenue Fund is used to account for monies deposited from developers to offset city administrative costs. There is no fund balance recorded for 2025. RALF Funded Projects Fund – This Capital Project Fund had a year-end fund balance of $273,915. The decrease in fund balance by $126,922 was the return of rental income to Met Council. State-Aid Construction Fund – This Capital Project Fund saw an overall decrease in fund balance of $32,428. Pavement Management Program Fund – This Capital Project Fund saw a decrease in fund balance of $3,104,805 due to a significant increase in street reconstruction projects. The ending fund balance for 2025 was $8,813,381. Park Improvement Fund – This Capital Project Fund had a year-end fund balance of $11,066,067, or a $1,978,472 increase from 2024. The increase was due to the transfer from the COR Land Fund for the construction costs of the Draw Park in the COR. 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 City’s Enterprise Funds had a combined net position balance of $138,578,504 at December 31, 2025. The financial activities of these funds have been summarized in previous charts within this discussion. The City’s Internal Service Fund had an ending net position of $439,765. 34 ## FINANCIAL ANALYSIS OF THE CITY’S FUNDS (CONTINUED) The Enterprise Funds consist of the Water Utility Fund, Sewer Utility Fund, Street Light Utility Fund, Recycling Utility Fund, and Storm Water Utility Fund. ## CAPITAL ASSETS AND LONG-TERM LIABILITIES Capital Assets – The City’s investment in capital assets (net of accumulated depreciation) for its governmental and business-type activities as of December 31, 2025 are as follows: 202520242025202420252024 Capital assets - not depreciated11,797,451$ 19,744,715$ 35,551,809$ 23,943,526$ 47,349,260$ 43,688,241$ Capital assets - depreciated107,759,535 91,451,714 78,627,715 73,877,561 186,387,250 165,329,275 Total capital assets, net of depreciation119,556,986$ 111,196,429$ 114,179,524$ 97,821,087$ 233,736,510$ 209,017,516$ Depreciation expense6,565,986$ 5,844,465$ 2,418,234$ 2,265,148$ 8,984,220$ 8,109,613$ ## Governmental ActivitiesBusiness-Type ActivitiesTotal The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2025 amounts to approximately $234 million (net of accumulated depreciation). The governmental activities show a net increase of $8,360,557 in capital assets attributable to the construction and reconstruction of City streets. Business-type activities show a net increase of $16,358,437 in capital assets. The increase is attributable to the construction of a water treatment plant. Additional details of capital asset activity for the year can be found in Note 5 of the notes to basic financial statements. Long-Term Liabilities – The Debt Service Funds account for the accumulation of resources to finance all of the City’s governmental activity general obligation bonds. The revenue sources for these funds include annual tax levies and special assessments. At year-end, the City had fund balance of $622,753 restricted for debt service. The following table summarizes the City’s long-term liabilities: 202520242025202420252024 Governmental activities G.O. improv emen t b on ds33,875,000$ 36,740,000$ –$ –$ 33,875,000$ 36,740,000$ Cap ital eq uipment certificates1,180,000 1,295,000 – – 1,180,000 1,295,000 Un amo rtized b on d p remiu ms1,730,740 1,915,176 – – 1,730,740 1,915,176 Co mpen s ated abs en ces p ayable1,467,069 1,270,328 – – 1,467,069 1,270,328 Net p ens io n liability4,936,498 5,448,915 – – 4,936,498 5,448,915 To tal OPEB liability1,457,811 1,379,460 – – 1,457,811 1,379,460 Business-type activities– – Net p en s io n liab ilit y362,265 370,664 362,265 370,664 To tal44,647,118$ 48,048,879$ 362,265$ 370,664$ 45,009,383$ 48,419,543$ ## TotalGovernmental ActivitiesBusiness-Type Activities During the current fiscal year, the City saw a decrease of $2,980,000 in bonds and certificates. Compensated absences liability increased by $196,741. Net pension liability saw a decrease of $520,816 to reflect the change in the City’s proportionate share of the state-wide PERA pension plan obligations. Other Post-Employment Benefits (OPEB) increased $78,351 due to experience losses. 35 ## CAPITAL ASSETS AND LONG-TERM LIABILITIES (CONTINUED) State statutes limit the amount of general obligation debt a governmental entity may issue to three percent of its total assessed valuation. The current legal debt margin for the City is $96,927,627. The City has sufficient funds on hand to make all required bond payments, and anticipates an ongoing stream of revenue to make future bond payments. Additional details of the long-term debt activity for the year can be found in Note 6 of the notes to basic financial statements. ## ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES •The unemployment rate for the City is currently 4.3%, which is an increase from a rate of 3.0% a year ago. The state of Minnesota shows an average unemployment rate of 4.3%, whereas, nationally the unemployment rate is 4.1%. •The housing market has increased the City’s estimated market value from $4.529 billion in 2024/taxes payable 2025 to $4.561 billion in 2025/taxes payable 2026 for a percentage increase of approximately 1%. •Inflationary trends in the region compare favorably to national indices. All of these factors were considered in preparing the City of Ramsey’s budget for the 2026 fiscal year. The water, sewer and storm utility rates were increased for the 2026 budget year. The water utility, which has a tiered rate structure, will increase by an average of 6% for all customers. The sewer utility, which has a flat rate structure for residential accounts only, will see an increase of 6%. Commercial sewer accounts, whose charges are based on their water usage, will also see a rate increase of 6%. Storm water utility will increase an average of 15%. The increased rates not only offset current maintenance costs and depreciation, but are being used to finance future utility improvements that are documented in the City’s ten-year Capital Improvement Plan. ## REQUESTS FOR INFORMATION Questions concerning any of the information provided in this report or requests for additional information should be addressed by writing to the City of Ramsey, 7550 Sunwood Drive Northwest, Ramsey, MN 55303 or by calling (763) 427-1410. 36 ## BASIC FINANCIAL STATEMENTS 37 ## PAGE INTENTIONALLY LEFT BLANK 38 ## GovernmentalBusiness-Type ## ActivitiesActivitiesTotal ## Assets Cash and temporary investments 57,274,605$ 23,036,656$ 80,311,261$ ## Receivables Unremitted taxes 264,081 – 264,081 Delinquent taxes 222,469 – 222,469 Unremitted special assessments 1,697 – 1,697 Delinquent special assessments49,617 12,610 62,227 Deferred special assessments149,471 347,678 497,149 Accounts 73,039 2,212,788 2,285,827 Notes131,523 – 131,523 Interest 499,374 – 499,374 Internal balances(920,653) 920,653 – Leases987,781 – 987,781 Due from other governmental units1,073,483 424,232 1,497,715 Prepaids 29,459 121,355 150,814 Land held for resale4,751,926 – 4,751,926 Capital assets Not depreciated11,797,451 35,551,809 47,349,260 Depreciated107,759,535 78,627,715 186,387,250 Total capital assets, net of depreciation119,556,986 114,179,524 233,736,510 Total assets 184,144,858 141,255,496 325,400,354 Deferred outflows of resources OPEB plan deferments794,118 – 794,118 Pension plan deferments4,964,317 149,572 5,113,889 Total deferred outflows of resources5,758,435 149,572 5,908,007 Total assets and deferred outflows of resources189,903,293$ 141,405,068$ 331,308,361$ ## Liabilities Accounts and contracts payable471,060$ 2,072,001$ 2,543,061$ Salaries and benefits payable 595,222 – 595,222 Accrued interest payable 69,172 – 69,172 Deposits payable2,841,536 – 2,841,536 Due to other governmental units73,379 79,224 152,603 Unearned revenue – 85,569 85,569 Long-term liabilities Due within one year2,758,225 – 2,758,225 Due in more than one year41,888,893 362,265 42,251,158 Total long-term liabilities44,647,118 362,265 45,009,383 Total liabilities48,697,487 2,599,059 51,296,546 Deferred inflows of resources Leases receivable for subsequent years987,781 – 987,781 OPEB plan deferments501,015 – 501,015 Pension plan deferments6,433,677 227,505 6,661,182 Total deferred inflows of resources7,922,473 227,505 8,149,978 ## Net Position Net investment in capital assets82,689,945 112,202,886 194,892,831 Restricted for Street improvements 1,375,332 – 1,375,332 Debt service643,790 – 643,790 Economic development1,764,394 – 1,764,394 Housing and redevelopment4,751,926 – 4,751,926 Recreation/community programs166,166 – 166,166 Public safety483,390 – 483,390 Tax increment2,789,765 – 2,789,765 Unrestricted38,618,625 26,375,618 64,994,243 Total net position133,283,333 138,578,504 271,861,837 Total liabilities, deferred inflows of resources and net position189,903,293$ 141,405,068$ 331,308,361$ See notes to basic financial statements ## CITY OF RAMSEY ## Statement of Net Position December 31, 2025 39 ## PAGE INTENTIONALLY LEFT BLANK 40 ## Program Revenues ## Operating Capital ## Charges for Grants and Grants and Governmental Business-Type ## Functions/ProgramsExpenses ServicesContributionsContributions Activities Activities Total Governmental activities General government6,126,045$ 929,249$ 458,092$ 485,019$ (4,253,685)$ –$ (4,253,685)$ Public safety9,597,991 1,521,500 891,141 10,326 (7,175,024) – (7,175,024) Highways and streets 9,194,282 502,436 – 8,184,946 (506,900) – (506,900) Culture and recreation 2,682,150 42,710 – 585,682 (2,053,758) – (2,053,758) Economic development1,342,690 – – – (1,342,690) – (1,342,690) Interest1,134,749 – – – (1,134,749) – (1,134,749) Total governmental activities30,077,907 2,995,895 1,349,233 9,265,973 (16,466,806) – (16,466,806) Business-type activities Water utility 2,360,896 3,610,668 – 2,775,987 – 4,025,759 4,025,759 Sewer utility 2,539,590 2,560,621 – 2,101,596 – 2,122,627 2,122,627 Street light utility 216,126 257,712 – – – 41,586 41,586 Recycling utility 580,435 483,595 70,390 – – (26,450) (26,450) Storm water utility 1,198,990 1,589,573 – 1,854,446 – 2,245,029 2,245,029 Total business-type activities6,896,037 8,502,169 70,390 6,732,029 – 8,408,551 8,408,551 Total governmental and business-type activities36,973,944$ 11,498,064$ 1,419,623$ 15,998,002$ (16,466,806) 8,408,551 (8,058,255) General revenues Property taxes23,699,395 – 23,699,395 General grants and contributions135,308 – 135,308 Investment earnings2,084,759 2,243,120 4,327,879 Gain on sale of capital assets55,075 – 55,075 Transfers35,012 (35,012) – Total general revenues and transfers26,009,549 2,208,108 28,217,657 Change in net position9,542,743 10,616,659 20,159,402 Net position - beginning123,740,590 127,961,845 251,702,435 Net position – ending133,283,333$ 138,578,504$ 271,861,837$ See notes to basic financial statements Net (Expenses) ## CITY OF RAMSEY ## Statement of Activities ## Year Ended December 31, 2025 ## Revenue and Changes in Net Position 41 ## CITY OF RAMSEY ## Balance Sheet ## Governmental Funds December 31, 2025 ## Formerly ## Major ## Fund ## CORDeveloper's Private ## GeneralTax Increment LandFeesDeveloper ## Assets Cash and temporary investments14,619,900$ 5,045,628$ 2,213,265$ –$ 2,772,609$ ## Receivables Unremitted taxes 203,106 1,023 – – – Delinquent taxes162,462 8,878 – – – Unremitted special assessments 58 – – – – Delinquent special assessments46,980 – – – – Deferred special assessments3,190 – – – – Accounts 21,050 – – – 15,846 Notes– – – – – Interest 499,374 – – – – Leases952,135 – – – – Due from other governmental units71,524 – – – – Due from other funds– – – – – Advances to other funds– – – – – Prepaids 26,466 – – – – Land held for resale– – 4,751,926 – – Total assets16,606,245$ 5,055,529$ 6,965,191$ –$ 2,788,455$ ## Liabilities Accounts and contracts payable311,842$ 3,720$ –$ –$ 3,719$ Salaries and benefits payable 595,222 – – – – Deposits payable56,800 – – – 2,784,736 Due to other governmental units14,865 143 – – – Due to other funds– 25,000 – – – Advances from other funds– 2,236,901 – – – Unearned revenue– – – – – Total liabilities978,729 2,265,764 – – 2,788,455 Deferred inflows of resources Leases receivable for subsequent years952,135 – – – – Unavailable revenue - MSA allocation– – – – – Unavailable revenue - property taxes162,462 8,878 – – – Unavailable revenue - special assessments50,170 – – – – Unavailable revenue - notes– – – – – Total deferred inflows of resources1,164,767 8,878 – – – Fund balances Nonspendable26,466 – – – – Restricted– 2,780,887 4,751,926 – – Committed– – – – – Assigned– – 2,213,265 – – Unassigned14,436,283 – – – – Total fund balances14,462,749 2,780,887 6,965,191 – – Total liabilities, deferred inflows of resources, and fund balances 16,606,245$ 5,055,529$ 6,965,191$ –$ 2,788,455$ See notes to basic financial statements ## Special Revenue Funds 42 ## RALFPavement ## FundedState-AidManagementPark ## ProjectsConstructionProgramImprovementNonmajorTotals 253,164$ 445,454$ 8,859,090$ 11,113,297$ 11,504,533$ 56,826,940$ – – 23,144 – 36,808 264,081 – – 19,414 – 31,715 222,469 – – 318 – 1,321 1,697 – – – – 2,637 49,617 – – 26,349 – 119,932 149,471 23,510 – – – 12,633 73,039 – – – – 131,523 131,523 – – – – – 499,374 35,646 – – – – 987,781 – 940,845 – – 61,114 1,073,483 – – – – 25,000 25,000 – – – – 1,454,009 1,454,009 – – – – 2,993 29,459 – – – – – 4,751,926 312,320$ 1,386,299$ 8,928,315$ 11,113,297$ 13,384,218$ 66,539,869$ 2,759$ 10,967$ 69,171$ 47,230$ 13,752$ 463,160$ – – – – – 595,222 – – – – – 2,841,536 – – – – 58,371 73,379 – – – – – 25,000 – – – – 137,761 2,374,662 – – – – – – 2,759 10,967 69,171 47,230 209,884 6,372,959 35,646 – – – – 987,781 – 940,845 – – – 940,845 – – 19,414 – 31,715 222,469 – – 26,349 – 122,569 199,088 – – – – 131,523 131,523 35,646 940,845 45,763 – 285,807 2,481,706 – – – – 2,993 29,459 – 434,487 – – 3,032,850 11,000,150 – – – – 1,891,396 1,891,396 273,915 – 8,813,381 11,066,067 7,961,288 30,327,916 – – – – – 14,436,283 273,915 434,487 8,813,381 11,066,067 12,888,527 57,685,204 312,320$ 1,386,299$ 8,928,315$ 11,113,297$ 13,384,218$ 66,539,869$ ## Capital Project Funds 43 ## PAGE INTENTIONALLY LEFT BLANK 44 $ 57,685,204 ## Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesandtherefore are not reported as assets in Governmental Funds. Net book value of capital assets 119,556,986 ## Long-termliabilitiesarenotdueandpayableinthecurrentperiodandthereforeare not reported as liabilities in the funds. Long-term liabilities at year-end consist of: Bonds and capital equipment certificates (35,055,000) Unamortized bond premiums (1,730,740) Compensated absences payable (1,467,069) Net pension liability (4,936,498) ## Total OPEB liability (1,457,811) ## Certainrevenues(includinglong-termreceivables,delinquenttaxes,andspecial assessments)areincludedinnetposition,butareexcludedfromfundbalancesuntil they are available to liquidate liabilities of the current period. 1,493,925 ## Accruedinterestpayableisincludedinnetposition,butisexcludedfromfund balances until due and payable. (69,172) Governmental funds do not report certain amounts related to pensions and OPEB: Deferred outflows of resources for OPEB plan deferments 794,118 Deferred outflows of resources for pension plan deferments 4,964,317 Deferred inflows of resources for OPEB plan deferments (501,015) Deferred inflows of resources for pension plan deferments (6,433,677) ## InternalServiceFundsareusedtomanageinsurance-relatedactivity.Theassetsand liabilitiesoftheInternalServiceFundsareincludedingovernmentalactivitiesinthe Statement of Net Position. 439,765 $ 133,283,333 - See notes to basic financial statements Total net position – governmental activities Amounts reported for governmental activitiesinthe StatementofNetPosition are different because: ## CITY OF RAMSEY ## Reconciliation of the Balance Sheet to the Statement of Net Position ## Governmental Funds December 31, 2025 Total fund balances – Governmental Funds 45 ## CITY OF RAMSEY ## Statement of Revenue, Expenditures, and Changes in Fund Balances ## Governmental Funds ## Year Ended December 31, 2025 ## Formerly ## Major ## Fund ## CORDeveloper's Private ## GeneralTax Increment LandFeesDeveloper ## Revenue Property taxes 16,534,327$ 2,194,648$ –$ –$ –$ Special assessments7,502 – – – – Licenses and permits 1,446,884 – – – – Intergovernmental revenue1,016,315 – – – – Charges for services1,213,938 – – – – Contributions– – – – – Fines and forfeits53,017 – – – – Other revenue Investment earnings 406,084 229,032 122,122 – – Miscellaneous 10,019 – – – 104,912 Total revenue20,688,086 2,423,680 122,122 – 104,912 ## Expenditures ## Current General government5,078,117 – – – 104,912 Public safety8,764,030 – – – – Highways and streets 2,824,235 – – – – Culture and recreation 2,008,760 – – – – Economic development– 1,147,454 – – – Capital outlay633,928 51,349 – – – Debt service Principal retirement– 340,000 – – – Interest – 330,734 – – – Total expenditures19,309,070 1,869,537 – – 104,912 Excess (deficiency) of revenue over expenditures1,379,016 554,143 122,122 – – Other financing sources (uses) Debt issued– – – – – Proceeds on sale of capital assets14,000 – – – – Transfers in813,408 – 413,760 – – Transfers (out)(1,068,048) (1,135,769) (2,167,957) – – Total other financing sources (uses)(240,640) (1,135,769) (1,754,197) – – Net change in fund balances1,138,376 (581,626) (1,632,075) – – Fund balances Beginning of year, as previously reported13,324,373 3,362,513 8,597,266 1,056,708 – Change within financial reporting entity– – – (1,056,708) – Beginning of year, as adjusted13,324,373 3,362,513 8,597,266 – – End of year14,462,749$ 2,780,887$ 6,965,191$ –$ –$ See notes to basic financial statements ## Special Revenue Funds 46 ## Capital Project Funds ## RALFPavement ## FundedState-AidManagementPark ## ProjectsConstructionProgramImprovementNonmajorTotals –$ –$ 1,894,341$ –$ 3,054,072$ 23,677,388$ – – 9,364 – 64,823 81,689 – – – – – 1,446,884 – 1,883,060 – 6,915 758,404 3,664,694 267,653 – – – – 1,481,591 – 27,600 59,460 472,927 221,077 781,064 – – – – – 53,017 – 9,880 421,042 383,990 493,146 2,065,296 – 51,000 39 – 636,243 802,213 267,653 1,971,540 2,384,246 863,832 5,227,765 34,053,836 – – – – 296,462 5,479,491 – – – – 101,233 8,865,263 394,575 830,646 42,061 – 696,054 4,787,571 – – – 36,188 – 2,044,948 – – – – 195,236 1,342,690 – 1,655,280 5,479,190 1,017,129 337,187 9,174,063 – – – – 2,640,000 2,980,000 – – – – 996,792 1,327,526 394,575 2,485,926 5,521,251 1,053,317 5,262,964 36,001,552 (126,922) (514,386) (3,137,005) (189,485) (35,199) (1,947,716) – – – – – – – – – – 41,075 55,075 – 481,958 32,200 2,167,957 1,736,480 5,645,763 – – – – (1,238,977) (5,610,751) – 481,958 32,200 2,167,957 538,578 90,087 (126,922) (32,428) (3,104,805) 1,978,472 503,379 (1,857,629) 400,837 466,915 11,918,186 9,087,595 11,328,440 59,542,833 – – – – 1,056,708 – 400,837 466,915 11,918,186 9,087,595 12,385,148 59,542,833 273,915$ 434,487$ 8,813,381$ 11,066,067$ 12,888,527$ 57,685,204$ 47 ## PAGE INTENTIONALLY LEFT BLANK 48 $ (1,857,629) ## CapitaloutlaysarereportedinGovernmentalFundsasexpenditures.However,inthe ## StatementofActivitiesthecostofthoseassetsisallocatedovertheestimatedusefullivesas depreciation expense. Capital outlays 9,174,063 Contributed assets from developers 5,659,755 Depreciation expense (6,565,986) ## Issuanceoflong-termdebtprovidescurrentfinancialresourcestogovernmentalfunds, whilerepaymentoflong-termliabilitiesisanexpenditureintheGovernmentalFunds. Neither transaction, however, has any effect on net position. Repayment of principal on long-term debt 2,980,000 Debt premiums 184,436 ## Interestonlong-termdebtintheStatementofActivitiesdiffersfromtheamountreportedin theGovernmentalFundsbecauseinterestisrecognizedasanexpenditureinthefundswhen itisdue,andthusrequirestheuseofcurrentfinancialresources.IntheStatementof ## Activities,however,interestexpenseisrecognizedastheinterestaccrues,regardlessof when it is due. 8,341 ## Certainrevenues(includinglong-termreceivables,delinquenttaxesandspecial assessments)areincludedinthechangeinnetposition,butareexcludedfromthechangein fund balances until they are available to liquidate liabilities of the current period. (172,350) ## Certainexpensesareincludedinthechangeinnetposition,butdonotrequiretheuseof current funds, and are not included in the change in the fund balances. Governmental activities – compensated absences payable (196,741) Governmental activities – pension expense 422,022 ## Otherpostemploymentbenefitsreportedinthestatementofactivitiesdonotrequiretheuse ofcurrentfinancialresourcesandarenotreportedasexpendituresingovernmentalfunds until actually due. (132,778) ## InternalServiceFundsareusedtochargethecostofcertainactivities,suchasinsuranceto individualfunds.ThisamountrepresentsthechangeinnetpositionoftheInternalService Fund, which is reported with governmental activities. (53,115) $ 9,542,743 See notes to basic financial statements Total net change in fund balances – Governmental Funds Amounts reported for governmental activitiesinthe StatementofActivities are different because: ## Year Ended December 31, 2025 Change in net position – governmental activities ## CITY OF RAMSEY Reconciliation of the Statement of ## Revenue, Expenditures, and Changes in Fund Balances to the Statement of Activities ## Governmental Funds 49 ## PAGE INTENTIONALLY LEFT BLANK 50 Original andOver (Under) ## Final BudgetActualFinal Budget ## Revenue Property taxes 16,874,046$ 16,534,327$ (339,719)$ Special assessments– 7,502 7,502 Licenses and permits960,870 1,446,884 486,014 Intergovernmental revenue756,000 1,016,315 260,315 Charges for services780,700 1,213,938 433,238 Fines and forfeits48,000 53,017 5,017 Other revenue Investment earnings 50,000 406,084 356,084 Miscellaneous20,600 10,019 (10,581) Total revenue19,490,216 20,688,086 1,197,870 ## Expenditures ## Current General government5,224,939 5,078,117 (146,822) Public safety9,094,448 8,764,030 (330,418) Highways and streets 3,256,189 2,824,235 (431,954) Culture and recreation 2,114,661 2,008,760 (105,901) Capital outlay 577,000 633,928 56,928 Debt service Interest and fiscal charges 106,373 – (106,373) Total expenditures20,373,610 19,309,070 (1,064,540) Excess (deficiency) of revenue over expenditures(883,394) 1,379,016 2,262,410 Other financing sources (uses) Proceeds on sale of capital assets– 14,000 14,000 Transfers in883,394 813,408 (69,986) Transfers (out)– (1,068,048) (1,068,048) Total other financing sources (uses)883,394 (240,640) (1,124,034) Net change in fund balances–$ 1,138,376 1,138,376$ Fund balances Beginning of year13,324,373 End of year14,462,749$ See notes to basic financial statements ## CITY OF RAMSEY ## Statement of Revenue, Expenditures, and Changes in Fund Balances ## General Fund – Budget and Actual ## Year Ended December 31, 2025 51 ## Street Light ## Water UtilitySewer UtilityUtility ## Assets Current assets Cash and temporary investments12,047,677$ 6,707,023$ 1,699,730$ ## Receivables Delinquent special assessments6,305 6,305 – Deferred special assessments173,991 173,687 – Accounts742,670 781,182 82,586 Due from other governmental units393,663 – – Prepaids4,800 116,555 – Total current assets13,369,106 7,784,752 1,782,316 Noncurrent assets Advances to other funds485,761 21,000 48,892 Capital assets Land868,513 – – Construction in progress33,379,927 229,729 – Buildings and structures6,177,522 – – Improvements other than buildings– – 1,135,881 Machinery and equipment389,810 843,601 – Water and sewer lines45,632,067 34,174,320 – 86,447,839 35,247,650 1,135,881 Less accumulated depreciation16,400,886 12,307,638 825,241 Net capital assets 70,046,953 22,940,012 310,640 Total noncurrent assets70,532,714 22,961,012 359,532 Total assets83,901,820 30,745,764 2,141,848 ## Deferred Outflows of Resources Pension plan deferments69,800 39,886 – Total assets and deferred outflows of resources83,971,620$ 30,785,650$ 2,141,848$ ## Liabilities Current liabilities Accounts and contracts payable2,043,179$ 7,204$ 10,908$ Due to other governmental units56,954 22,141 129 Unearned revenue – 77,035 8,534 Total current liabilities2,100,133 106,380 19,571 Noncurrent liabilities Net pension liability169,057 96,604 – Total liabilities2,269,190 202,984 19,571 ## Deferred Inflows of Resources Pension plan deferments106,169 60,668 – ## Net Position Net investment in capital assets68,078,599 22,938,540 310,640 Unrestricted 13,517,662 7,583,458 1,811,637 Total net position81,596,261 30,521,998 2,122,277 Total liabilities, deferred inflows of resources and net position 83,971,620$ 30,785,650$ 2,141,848$ See notes to basic financial statements ## Business-Type Activities – Enterprise Funds ## CITY OF RAMSEY ## Statement of Net Position ## Proprietary Funds December 31, 2025 52 ## Governmental ## Activities ## RecyclingStorm WaterInternal ## UtilityUtilityTotalsService 220,443$ 2,361,783$ 23,036,656$ 447,665$ – – 12,610 – – – 347,678 – 149,090 457,260 2,212,788 – 30,569 – 424,232 – – – 121,355 – 400,102 2,819,043 26,155,319 447,665 – 365,000 920,653 – – 637,583 1,506,096 – – 436,057 34,045,713 – – – 6,177,522 – – 24,548,604 25,684,485 – – 1,077,978 2,311,389 – – 334,378 80,140,765 – – 27,034,600 149,865,970 – – 6,152,681 35,686,446 – – 20,881,919 114,179,524 – – 21,246,919 115,100,177 – 400,102 24,065,962 141,255,496 447,665 – 39,886 149,572 – 400,102$ 24,105,848$ 141,405,068$ 447,665$ 65$ 10,645$ 2,072,001$ 7,900$ – – 79,224 – – – 85,569 – 65 10,645 2,236,794 7,900 – 96,604 362,265 – 65 107,249 2,599,059 7,900 – 60,668 227,505 – – 20,875,107 112,202,886 – 400,037 3,062,824 26,375,618 439,765 400,037 23,937,931 138,578,504 439,765 400,102$ 24,105,848$ 141,405,068$ 447,665$ 53 ## Street Light ## Water UtilitySewer UtilityUtility Operating revenue Charges for services3,610,668$ 2,553,638$ 257,712$ Sewer access surcharge– 6,983 – Other– –– Total operating revenue3,610,668 2,560,621 257,712 Operating expenses Personal services556,844 334,605 – Supplies374,898 11,914 – Service charges Disposal charges– 1,277,649 – Other354,683 95,247 185,475 Depreciation1,074,471 750,634 30,651 Total operating expenses2,360,896 2,470,049 216,126 Operating income (loss)1,249,772 90,572 41,586 Nonoperating revenue Intergovernmental revenue– – – Capital contributions to governmental activities– – – Loss on disposal of assets– (69,541) – Investment earnings1,480,054 576,107 67,188 Total nonoperating revenue1,480,054 506,566 67,188 Income (loss) before contributions and transfers2,729,826 597,138 108,774 Capital contributions - developer contributions1,492,959 1,925,282 – Capital contributions - capital grants393,391 – – Capital contributions - connection fees889,637 176,314 – Transfers in81,172 16,718 6,437 Transfers (out)(59,000) (53,000) (31,000) Change in net position5,527,985 2,662,452 84,211 Net position Beginning of year76,068,276 27,859,546 2,038,066 End of year81,596,261$ 30,521,998$ 2,122,277$ See notes to basic financial statements ## Business-Type Activities – Enterprise Funds ## CITY OF RAMSEY ## Statement of Revenue, Expenses, and Changes in Net Position ## Proprietary Funds ## Year Ended December 31, 2025 54 ## Governmental ## Activities ## RecyclingStorm WaterInternal ## UtilityUtilityTotalsService 483,595$ 1,589,573$ 8,495,186$ –$ – – 6,983– – – –74,771 483,595 1,589,573 8,502,169 74,771 54,984 422,385 1,368,818 – 36,671 32,767 456,250 44,265 – – 1,277,649 – 488,780 132,031 1,256,216 10,359 – 562,478 2,418,234 – 580,435 1,149,661 6,777,167 54,624 (96,840) 439,912 1,725,002 20,147 70,390 – 70,390– – – –(92,725) – (49,329) (118,870) – 9,493 110,278 2,243,120 19,463 79,883 60,949 2,194,640 (73,262) (16,957) 500,861 3,919,642 (53,115) – 1,854,446 5,272,687 – – – 393,391– – – 1,065,951– – 52,661 156,988 – – (49,000) (192,000) – (16,957) 2,358,968 10,616,659 (53,115) 416,994 21,578,963 127,961,845 492,880 400,037$ 23,937,931$ 138,578,504$ 439,765$ 55 ## Street Light ## Water UtilitySewer UtilityUtility Cash flows from operating activities Receipts from customers and users3,670,898$ 2,566,334$ 253,467$ Receipts from interfund services provided– – – Paid to suppliers/service providers(669,711) (1,472,922) (174,614) Paid to employees(587,473) (352,108) – Net cash flows from operating activities2,413,714 741,304 78,853 Cash flows from capital and related financing activities Capital assets purchased and contributed to governmental activities– – – Capital contributions - connection fees889,637 176,314 – Capital contributions - capital grants393,391 – – Acquisition of capital assets(11,813,858) (620,418) – Proceeds from sale of capital assets– 26,600 – Net cash flows from capital and related financing activities(10,530,830) (417,504) – Cash flows from investing activities Interest and changes in fair value on investments1,480,054 576,107 67,188 Cash flows from noncapital financing activities Transfers in81,172 16,718 6,437 Transfers (out)(59,000) (53,000) (31,000) Intergovernmental revenue– – – Advances repaid from other funds40,926 – – Net cash flows from noncapital financing activities63,098 (36,282) (24,563) Net increase (decrease) in cash and temporary investments/cash equivalents(6,573,964) 863,625 121,478 Cash and temporary investments/cash equivalents Beginning of year18,621,641 5,843,398 1,578,252 End of year12,047,677$ 6,707,023$ 1,699,730$ Reconciliation of operating income (loss) to net cash flows from operating activities Operating income (loss)1,249,772$ 90,572$ 41,586$ Adjustments to reconcile operating income (loss) to net cash flows from operating activities Depreciation1,074,471 750,634 30,651 Change in assets, deferred inflows, liabilities and deferred outflows ## Receivables Delinquent and deferred special assessments1,819 7,765 – Accounts (45,624) (19,447) (6,597) Due from other governmental units104,035 – – Prepaids 925 (10,084) – Deferred outflows - pension plan deferments(17,901) (10,229) – Accounts payable and contracts payable43,402 (1,764) 10,867 Unearned revenue– 17,395 2,352 Due to other governmental units15,543 (76,264) (6) Net pension liability(3,919) (2,240) – Deferred inflows - pension plan deferments(8,809) (5,034) – Net cash flow from operating activities2,413,714$ 741,304$ 78,853$ Noncash, investing, capital, and financing activities Contributions of capital assets from developers1,492,959$ 1,925,282$ –$ Change in capital assets purchased on account(90,169)$ (2,219)$ –$ See notes to basic financial statements ## Business-Type Activities – Enterprise Funds ## CITY OF RAMSEY ## Statement of Cash Flows ## Proprietary Funds ## Year Ended December 31, 2025 56 ## Governmental ## Activities ## Recycling Storm Water Internal ## Utility Utility TotalsService 488,155$ 1,527,744$ 8,506,598$ –$ – – – 74,771 (525,427) (164,009) (3,006,683) (46,724) (54,984) (439,888) (1,434,453) – (92,256) 923,847 4,065,462 28,047 – – – (92,725) – – 1,065,951 – – – 393,391 – – (1,361,692) (13,795,968) – – 51,400 78,000 – – (1,310,292) (12,258,626) (92,725) 9,493 110,278 2,243,120 19,463 – 52,661 156,988 – – (49,000) (192,000) – 70,390 – 70,390 – – – 40,926 – 70,390 3,661 76,304 – (12,373) (272,506) (5,873,740) (45,215) 232,816 2,634,289 28,910,396 492,880 220,443$ 2,361,783$ 23,036,656$ 447,665$ (96,840)$ 439,912$ 1,725,002$ 20,147$ – 562,478 2,418,234 – – – 9,584 – (6,103) (61,829) (139,600) 7,900 10,663 – 114,698 – – – (9,159) – – (10,229) (38,359) – 24 789 53,318 – – – 19,747 – – – (60,727) – – (2,240) (8,399) – – (5,034) (18,877) – (92,256)$ 923,847$ 4,065,462$ 28,047$ –$ 1,854,446$ 5,272,687$ –$ –$ (2,726)$ (95,114)$ –$ 57 ## PAGE INTENTIONALLY LEFT BLANK 58 ## Custodial Fund ## Assets Land held for resale 9,536,772$ ## Liabilities Due to other governmental units 9,536,772 ## Net Position –$ ## Custodial Fund ## Additions –$ ## Deductions – Net change of fiduciary net position – Net position - beginning – Net position - ending –$ See notes to basic financial statements ## CITY OF RAMSEY ## Statement of Changes in Fiduciary Net Position ## Fiduciary Fund ## Year Ended December 31, 2025 ## CITY OF RAMSEY ## Statement of Fiduciary Net Position ## Fiduciary Fund December 31, 2025 59 ## PAGE INTENTIONALLY LEFT BLANK 60 ## CITY OF RAMSEY ## Notes to Basic Financial Statements December 31, 2025 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES ## A. Organization The City of Ramsey, Minnesota (the City) operates under the Home Rule Charter City form of government as defined in Minnesota Statutes. Under this plan, the government of the City is run by a City Council composed of an elected Mayor and elected Councilmembers. The City Council exercises legislative authority and determines all matters of policy. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. ## B. Reporting Entity As required by accounting principles generally accepted in the United States of America, these financial statements include the City (the primary government) and its component units. Component units are legally separate entities for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit’s Board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. ## 1. Blended Component Units The Ramsey Economic Development Authority (EDA) was created to carry out housing and economic development activities within the City. The governing board of the EDA is the City Council who approve the annual tax levy and direct the activities of the EDA’s management. City employees such as the City Administrator, Deputy City Administrator, and the Economic Development Manager perform key management functions for the EDA. The activity of the EDA is reported in the Nonmajor Special Revenue Fund entitled Economic Development Authority. Separate financial statements are not prepared for the EDA. ## 2. Jointly Governed Organization The City is a member of Local Governmental Information Systems (LOGIS), a consortium of Minnesota municipalities that provides data processing services and support to its members. LOGIS is a legally separate entity that is financially independent of the City. Further, the City does not appoint a voting majority of LOGIS’ Board of Directors. Therefore, it has not been incorporated into the City’s reporting entity. During the 2025 fiscal year, the City paid LOGIS approximately $437,145 for services and equipment provided. 61 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## C. Government-Wide Financial Statements The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) display information about the reporting government as a whole. These statements include all of the financial activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on sales, fees, and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments, which are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other internally directed revenues are reported as general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the fiscal year for which they are levied. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. However, charges between the City’s Enterprise Funds and other functions are not eliminated as that would distort the direct costs and program revenues reported in those functions. Depreciation expense is included in the direct expenses of each function. Interest on long-term debt for governmental activities is considered an indirect expense and is reported separately on the Statement of Activities. ## D. Fund Financial Statement Presentation Separate fund financial statements are provided for Governmental, Proprietary, and Fiduciary Funds. Major individual Governmental and Enterprise Funds are reported as separate columns in the fund financial statements. Aggregated information for the remaining Nonmajor Governmental Funds is reported in a single column in the fund financial statements. A single column is presented in the Proprietary Fund statements to report Internal Service Fund activity. Fiduciary Funds are presented in the Fiduciary Fund financial statements by fund type. Governmental Fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis of accounting, transactions are recorded in the following manner: 1. Revenue Recognition – Revenue is recognized when it becomes measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be available if collected within 60 days after year-end. Property tax revenue is generally considered as available if collected within 60 days after year-end. 62 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 1.Revenue Recognition (Continued) – Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the curren t peri od. Grants and similar items are recognized when all eligibility requirements imposed by the provider have been met. Other revenue is considered measurable and available only when cash is received by the City. Proceeds of long-term debt is reported as other financing sources. Major revenue that is susceptible to accrual includes property taxes, special assessments, intergovernmental revenue, charges for services, and interest earned on investments. Major revenue that is not susceptible to accrual includes licenses and permits, fees, and miscellaneous revenue. Such revenue is recorded only when received because it is not measurable until collecte d. 2.Recordin g of Expenditures – Expenditures are generally recorded when a liability is incurred, except for principal and interest on long-term debt and other long-term liabilities which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as capital outlay expenditures in the Governmental Fu nds. ## Proprie tary Fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government-wide financial statements. Proprietary Funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a Proprietary Fund’s principal ongoing operations. The principal operating revenues of the City’s Enterprise Funds and Internal Service Funds are charges to customers for sales and services. The operating expenses for the Enterprise Funds and Internal Service Funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Information for the Internal Service Fund is reported i n a single column in the Proprietary Fund financial statements. Because the principal user of the internal services is the City’s governmental activities, the financial statements of the Internal Service Fund are consolidated into the governmental column when presented in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Fiduciary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting, similar to the government-wide financial statements. Since, by definition, fiduciary fund assets are being held for the benefit of a third party and cannot be used for activities or obligations of the City, these funds are excluded from the government-wide statements. ## Description of Funds ## The City reports the following Major Governmental Funds: General Fund – This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Tax Increment Special Revenue Fund – This fund is used to account for resources received from general property taxes in the form of tax increments. COR Land Special Revenue Fund – This fund is used to account for revenues and expenditures associated with land transactions within the COR area. 63 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Private Developer Special Revenue Fund – This fund is used to account for monies deposited from developers to offset city administrative costs. Revolving Acquisition Loan Fund (RALF) Funded Projects Capital Project Fund – This fund is used to account for resources and expenditures related to the purchase of property for future state road development. State-Aid Construction Capital Project Fund – This fund is used to account for state-aid allotments used by the City for improvement projects to thoroughfare roads within the City. Pavement Management Program Capital Project Fund – This fund is used to account for the resources to be used for road reconstructions and overlays per the City’s Pavement Management Program. Park Improvement Capital Project Fund – This fund is used to account for all park dedication fees to be used for land acquisition and park development. ## The City reports the following Major Proprietary Funds: Water Utility Fund – This fund is used to account for the operation of the city-owned water system. Sewer Utility Fund – This fund is used to account for the operation of the city-owned sewer system. Street Light Utility Fund – This fund is used to account for the operation of city-owned streetlights within subdivisions and the priority streetlights throughout the City. Recycling Utility Fund – This fund is used to account for the operation of the City’s curbside recycling program and annual recycling days. Storm Water Utility Fund – This fund is used to account for the operation of the city-owned storm water system repair and upkeep. The City also reports the following fund types: Internal Service Fund – This fund is used to account for the City’s insurance refunds, dividends, and other miscellaneous insurance related revenues, and to provide for self-insuring the deductible portions of the City’s insurance policies. Custodial Fund – This fund is used to account for property purchased on behalf of the state and the related liability for future state highway improvements. ## E. Cash and Investments Cash balances from all funds are combined and invested to the extent available in short-term investments. Earnings from the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances of the respective funds. Bond proceeds are held in separate accounts with investment earnings recorded directly to the applicable fund. 64 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## E. Cash and Investments (Continued) The City reports all other investments at fair value except for certain investment pools reported at amortized cost. The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. See Note 2 for the City’s recurring fair value measurements as of the current year-end. ## F. Receivables Utility and miscellaneous accounts receivable are reported at gross. Notes receivable are reported at net of collections for year. Since the City is generally able to certify delinquent amounts to the county for collection as special assessments, no allowance for uncollectible accounts has been provided on these receivables. The only receivables not expected to be fully collected within one year are leases receivable, notes receivable, delinquent property taxes receivable, delinquent and deferred special assessments receivable, and other long-term receivables. ## G. Property Taxes Property tax levies are set by the City Council by December of each year and are certified to the County Auditor for collection in the following year. In Minnesota, counties act as collection agents for all property taxes. A portion of the property taxes levied is paid by the state of Minnesota through various tax credits, which is included in intergovernmental revenue in the financial statements. The county spreads all levies over taxable property. Such taxes become a lien on January 1 and are recorded as receivables by the City on that date. Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15. Personal property taxes are due in full on May 15. The county provides tax settlements to cities and other taxing districts several times a year. Taxes which remain unpaid at December 31 are classified as delinquent taxes receivable and are offset by deferred inflows of resources in the governmental fund financial statements. ## H. Special Assessments Special assessments primarily represent the financing for public improvements paid for by the benefiting property owners. As previously mentioned under receivables, the City is also generally able to certify delinquent amounts to the county for collection as special assessments. Special assessments are recorded as receivables upon certification to the county. Special assessments are recognized as revenue in the year levied in the government-wide financial statements and proprietary fund financial statements. In the governmental fund financial statements, special assessments are recognized as revenue when received in cash or within 60 days after year end. Governmental fund special assessments receivable which remain unpaid on December 31 are offset by a deferred inflow of resources in the governmental fund financial statements. 65 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## I. Prepaids 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. In governmental funds, prepaids are recognized by the consumption method, proportionately over the periods that service is provided. ## J. Interfund Receivables and Payables Activity between funds that is representative of lending or borrowing arrangements is reported as either “due to/from other funds” (current portion) or “advances to/from other funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” ## K. State-Wide Pension Plans For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from the PERA’s fiduciary net positions have been determined on the same basis as they are reported by the PERA. For this purpose, plan contributions are recognized as of employer payroll dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. ## L. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, the Statement of Financial Position will sometimes report a separate section for deferred outflows or inflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to future periods and deferred inflows of resources represent an acquisition of net assets that applies to future periods. These separate financial statement elements will not be recognized as an outflow of resources (expense/expenditure) or an inflow of resources (revenue) until that time. The City reports deferred outflows and inflows of resources related to pensions and other post-employment benefits (OPEB) reported in the government-wide and enterprise funds Statement of Net Position. These deferred outflows and inflows result from differences between expected and actual experience, changes of assumptions, changes in proportion, net collective difference between projected and actual earnings on pension plan investments, and contributions to the plan subsequent to the measurement date and before the end of the reporting period. These amounts are deferred and amortized as required under pension and OPEB standards. The City reports deferred inflows of resources related to lease receivables, which requires lessors to recognize deferred inflows of resources to correspond to lease receivables. These amounts are deferred and amortized in a systematic and rationale manner over the term of the lease. The City currently reports deferred inflows of resources for leases in the government-wide statement of net position and governmental funds balance sheet. Deferred inflows of resources for unavailable revenue, arises under a modified accrual basis of accounting and is reported only in the governmental funds Balance Sheet. The governmental funds report unavailable revenue from: long-term and MSA allocation receivables, property taxes, and special assessments. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. 66 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## M. Land Held for Resale Land held for resale represents various property purchases made by the City with the intent to sell in order to increase tax base or to attract new businesses. These assets are stated at the lower of cost or acquisition value. The City currently retains parcels that will be available for future commercial development along Highway 10 now that the interchange projects on the highway have been completed in 2025. ## N. Capital Assets Capital assets, which include property, buildings, improvements, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Such assets are capitalized at historical cost, or estimated historical cost for assets where actual historical cost is not available. Donated assets are recorded as capital assets at their estimated acquisition value at the date of donation. The City defines capital assets as those with an initial, individual cost of $10,000 or more with an estimated useful life in excess of one year. Groups of similar assets acquired at or near the same time for a single objective, with individual costs above $50,000, are also capitalized as the cost is considered significant. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Allowed by accounting principles generally accepted in the United States of America, the City has elected not to retroactively capitalize the infrastructure of its governmental activities acquired prior to January 2004. Capital assets are recorded in the government-wide and Proprietary Fund financial statements, but are not reported in the Governmental Fund financial statements. Capital assets are depreciated using the straight- line method over their estimated useful lives. Land and construction in progress are not depreciated. Useful lives vary from 15 to 50 years for buildings and structures and improvements other than buildings, 5 to 10 years for office equipment, motor vehicles and machinery and equipment, and 20 to 50 years for water and sewer lines and infrastructure. ## O. Compensated Absences Payable The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or paid in cash to the employee or payment to a health care savings account during or upon separation from employment. Based on the criteria listed, three types of leave qualify for liability recognition for compensated absences – compensatory time, vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide financial statements. The liability for compensated absences includes salary-related benefits, where applicable. ## Compensatory Time The City’s personnel policy and union contracts permits employees to accumulate earned but unused compensatory time, which are eligible for payment at the employee’s current pay rate upon separation from employment. ## Vacation The City’s personnel policy permits employees to accumulate earned but unused vacation time, which are eligible for payment at the employee’s current pay rate upon separation from employment. 67 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## O. Compensated Absences Payable (Continued) ## Sick The City’s personnel policy permits employees to accumulate earned but unused sick leave. A minimum of one third of unused sick leave (based on longevity), is paid to the departing employee if they have completed 5 or more years of service prior to separation. A liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences. ## P. Long-Term Liabilities In the government-wide and Proprietary Fund financial statements, long-term debt and other long-term obligations are reported as liabilities as they accrue. Bond premiums and discounts that are material are amortized over the life of the bond issue. Bond issuance costs are expensed in the period incurred. In the Governmental Fund financial statements, long-term debt and other long-term obligations are not reported as liabilities until due. The face amount of debt issued is reported as other financing sources. Premiums or discounts on debt issuances are reported as other financing sources or uses, respectively. ## Q. Net Position In the government-wide, proprietary fund, and fiduciary fund financial statements, net position represents the difference between assets, liabilities, deferred inflows/outflows as applicable. Net position is displayed in three components: x Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation, reduced by any outstanding debt attributable to acquire capital assets. x Restricted Net Position – Consists of net position restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments, or enabling legislation. x Unrestricted Net Position – All remaining net position that do not meet the definition of “restricted” or “net investment in capital assets.” The City applies restricted resources first when an expense is incurred for which both restricted and unrestricted resources are available. ## R. Fund Balance Classifications In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: x Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items, inventory, and other long-term assets. x Restricted – Consists of amounts where there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments, or enabling legislation. 68 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## R. Fund Balance Classifications (Continued) x Committed – Consists of amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the resolution remains in place until a similar action is taken (the adoption of another resolution) to remove or revise the limitation. x Assigned – Consists of internally imposed constraints for amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. Assigned amounts represent intended uses established by the City Council itself or by an official to which the City Council delegates the authority. Pursuant to City Council Resolution, the City’s Finance Director is authorized to establish assignments of fund balance. The City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. x Unassigned – The residual classification for the General Fund, which also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, the City first uses restricted resources, then use unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use, the City uses resources in the following order: 1) committed, 2) assigned, and 3) unassigned. ## S. Budgets and Budgetary Accounting Each fall the City Council adopts a General Fund budget for the following fiscal year beginning January 1. In addition, an annual budget is legally adopted for the Economic Development Authority, a nonmajor special revenue fund. The City has established budgetary control at the function level based upon GAAP serving as the basis of budgeting. Budget appropriations lapse at year-end. The government’s department heads may make transfers of appropriations within a function. Transfers of appropriations between functions require the approval of the council. The Economic Development Authority budget is recommended by their board and final approval comes from City Council. ## T. Statement of Cash Flows For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with an original maturity from the time of purchase by the City of three months or less to be cash equivalents. The Proprietary Funds’ portion in the government-wide cash and investment management pool is considered to be cash equivalent. 69 ## NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ## U. Risk Management The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City participates in the League of Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool for its general property and casualty, workers’ compensation, and other miscellaneous insurance coverages. LMCIT operates as a common risk management and insurance program for a large number of cities in Minnesota. The City pays an annual premium to LMCIT for insurance coverage. The LMCIT agreement provides that the trust will be self-sustaining through member premiums and will reinsure through commercial companies for claims in excess of certain limits. The City has elected higher deductibles through LMCIT in order to keep premiums at a minimum. To supplement the commercial coverages, the City established the Self-Insurance Internal Service Fund. This fund is funded primarily through dividend paybacks from LMCIT. Expenses from this fund consist solely of payments of those insurance related costs that are below the individual and/or cumulative deductible amounts. Premiums for LMCIT policies are not paid from the Self-Insurance Internal Service Fund, but rather are budgeted and paid from the respective operating funds. The City does not retain significant uncovered risk. The City also carries commercial insurance for certain other risks of loss. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. There were no significant reductions in the City’s insurance coverage in 2025. ## V. Use of Estimates The preparation of financial statements, in accordance with accounting principles generally accepted in the United States of America, requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. ## NOTE 2 – DEPOSITS AND INVESTMENTS ## A. Components of Cash and Investments Cash and investments at year-end consist of the following: In v es tmen ts80,310,961$ Cash on hand300 To tal80,311,261$ ## B. Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council, including checking accounts and certificates of deposits. 70 ## NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) ## B. Deposits (Continued) The following is considered the most significant risk associated with deposits: Custodial credit risk – In the case of deposits, this is the risk that in the event of a bank failure, the City’s deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City has no additional deposit policies addressing custodial credit risk. At year end, the carrying amount of the City's deposits was $0 while the balance on the bank records was $5,114. At December 31, 2025, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City’s agent in the City’s name. ## C. Investments The City has the following investments at year end: ## Fair Valu e ## Measurements Investment TypeRatingAgencyUsingLess Than 11 to 5Total Mu ncipal b on d sA -A A AMo od y’sLev el 22,235,610$ 6,899,603$ 9,135,213$ Mu ncipal b on d sA -A A AS&PLev el 25,744,020 24,014,434 29,758,454 Neg o tiab le certificates of depo s itN/AN/ALev el 2244,062 1,217,919 1,461,981 Investment pools ## Minnesota Municipal Money Market 4MPlus Fu ndA A AS&PA mortized Cos t3,758,103 – 3,758,103 Term SeriesN/RN/AA mortized Cos t22,000,000 4,000,000 26,000,000 Inv es co Mon ey Market Fun dA A AS&PNA V2,268,217 – 2,268,217 UBS SelectPrime In s itu tio nal Fu ndA A AMo od y’sNA V7,928,993 – 7,928,993 To tal inv es tments44,179,005$ 36,131,956$ 80,310,961$ ## N/A – Not A pplicable ## N/R – Not Rated NA V – N e t A s s e t Va lu e Cred it Ris k ## Interest Risk – ## Maturity Duration in Years 71 ## NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) The City’s investments include the following investment pools: Investment pools managed by the Minnesota Municipal Money Market (4M) which is an external investment pool regulated by Minnesota Statutes and is not registered with the Securities and Exchange Commission (SEC) that follows the same regulatory rules of the SEC. The City’s investments in this investment pool – 4M Plus Fund and Term Series are based on amortized cost methods that approximate fair value. The 4M Fund is sponsored by the League of Minnesota Cities. For this investment pool, there are no unfunded commitments, redemption frequency is daily, and there is no redemption notice required for the liquid class; the redemption period is 14 days for the Plus Class. The Term Series has a 7-day redemption notice requirement. The Invesco Money Market Fund includes investments primarily in short-term, high-credit-quality money market instruments that invest domestically and globally in both long and short-term common stocks across all market capitalizations. The fund aims to preserve capital, maintain liquidity and produce a competitive yield. This is an external investment pool that operates in conformity with the Securities and Exchange Commission’s rules. There are no withdrawal restrictions related to the fund. The City’s investments in this investment pool are assigned a AAA rating by S&P. The UBS Select Prime Industrial Fund includes investments primarily in short-term, high-credit-quality money market instruments that invest domestically and globally in both long and short-term common stocks across all market capitalizations. The fund aims to preserve capital, maintain liquidity and produce a competitive yield. This is an external investment pool that operates in conformity with the Securities and Exchange Commission’s rules. There are no withdrawal restrictions related to the fund. The City’s investments in this investment pool are assigned a AAA rating by Moody’s. Investments are subject to various risks, the following of which are considered the most significant: Custodial credit risk – For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have a formal investment policy addressing this risk, but typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. Credit risk – This is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Minnesota Statutes limit the City’s investments to direct obligations or obligations guaranteed by the United States or its agencies; general obligations rated “A” or better; revenue obligations rated “AA” or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; commercial paper issued by the United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers acceptances of the United States banks and Guaranteed Investment Contracts guaranteed by a United States commercial bank or domestic branch of a foreign bank, or a United States insurance company, or their Canadian subsidiary, and with a credit quality in one of the top two highest categories by a nationally recognized rating agency. The City’s investment policies do not further address credit risk. Concentration risk – This is the risk associated with investing a significant portion of the City’s investment (considered 5 percent or more) in the securities of a single issuer, excluding United States guaranteed investments (such as Treasuries), investment pools and mutual funds. The City’s investment policies do not limit the concentration of investments. 72 ## NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED) Interest rate risk – This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City does not have an investment policy limiting the duration of investments. ## NOTE 3 – LEASE RECEIVABLE The City has entered into lease receivable agreements for cell tower rental space on city property. These leases are reported using an incremental borrowing rate of 3.25 percent with final maturities through fiscal 2032. During the current year, the City received principal and interest payments on these leases of $89,385. The City has entered into lease receivable agreements for rental space in city owned buildings and vacant land. These leases are reported using an incremental borrowing rate of 3.25 percent with final maturities through 2040. During the current year, the City received principal and interest payments on these leases of $303,137. Leasing assets to other entities is not a principal ongoing operation of the city. ## NOTE 4 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS ## A. Due From and Due To Other Funds A $25,000 internal loan from the Nonmajor Economic Development Authority Fund payable by the Tax Increment Fund was utilized for cash flow purposes. ## B. Advance To and From Other Funds Individual interfund advances to and from other funds at year-end were as follows: ## Tax IncrementNonmajor ## Special RevenueGovernmental ## Receivable FundFundFundsAmount No n majo r Go v ern men tal Fu n d s1,454,009$ –$ 1,454,009$ W ater Utility En terp ris e Fu n d348,000 137,761 485,761 Sewer Utility Enterpris e Fund21,000 – 21,000 Street Light Utility Enterprise Fund48,892 – 48,892 Sto rm W ater Utility En terp ris e Fu n d365,000 – 365,000 To tal2,236,901$ 137,761$ 2,374,662$ ## Payable Fund The Tax Increment Fund advances from other funds of $2,236,901 was used to finance improvements in the COR. All funds are to be repaid by 2038. The $137,761 is to internally finance a facility loan. The Water Utility Fund is to be repaid by 2028 with a stated rate of interest of 2%. 73 ## NOTE 4 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) ## C. Interfund Transfers ## PavementStreetStorm ## COR LandState-AidManagementParkWaterSewerLightWater ## SpecialConstructionProgramImprovementNonmajorUtilityUtilityUtilityUtility ## GeneralRevenueCapitalCapitalCapitalGovernmentalEnterpriseEnterpriseEnterpriseEnterprise ## FundFundProject FundProject FundProject FundFundsFundFundFundFundTotal General Fund–$ –$ –$ –$ –$ 1,006,195$ 61,853$ –$ –$ –$ 1,068,048$ Tax Increment Special Revenue Fund– 413,760 281,958 – – 344,916 19,319 16,718 6,437 52,661 1,135,769 COR Land Special Revenue Fund– – – – 2,167,957 – – – – – 2,167,957 Nonmajor Governamtal Funds621,408 – 200,000 32,200 – 385,369 – – – – 1,238,977 W at er Ut ilit y En t erp ris e Fu n d59,000 – – – – – – – – – 59,000 Sewer Utility Enterpris e Fund53,000 – – – – – – – – – 53,000 Street Light Utility Enterprise Fund31,000 – – – – – – – – – 31,000 St o rm W at er Ut ilit y En t erp ris e Fu n d49,000 – – – – – – – – – 49,000 ## T o t al813,408$ 413,760$ 481,958$ 32,200$ 2,167,957$ 1,736,480$ 81,172$ 16,718$ 6,437$ 52,661$ 5,802,751$ ## Transfers In ## Transfers Out The interfund receivables, payables and transfers are used to move funds to finance various programs or projects that the City must account for in other funds in accordance with budgetary authorizations and to move revenues from the fund with collection authorization to funds where related expenditures are occurring. Interfund activity is eliminated as needed for entity-wide financial statement reporting. In 2025, the General Fund transferred $431,226 each to the Public Improvement Revolving Fund and Equipment Revolving Fund and $143,742 the Public Facilities Construction Fund for their respective shares as outlined in the City’s Fund Balance Policy. The General Fund transferred $61,853 to the Water Utility Fund for its annual repayment of the Municipal Center capital contribution. The Tax Increment Fund transferred $413,760 to the COR Land Fund, $281,958 to the State-Aid Construction Fund, $78,167 to the Developer’s Fee Fund, $264,188 to the Public Improvement Revolving Fund, $2,562 to the Equipment Revolving Fund, $19,319 to the Water Utility Fund, $16,718 to the Sewer Utility Fund, $6,437 to the Street Light Utility Fund and $52,661 to the Storm Water Utility Fund to reimburse back these funds for prior expenses related to the development of the COR area as allowed by Special Legislation. The COR Land Fund transferred $2,167,957 to the Park Improvement Fund for the repayment of the Draw Park in the COR area. The Federal/State Relief Fund transferred $23,408 to the General Fund for capital equipment purchases. The General Govt Special Projects Fund transferred $30,000 to the General Fund for capital equipment purchases. The 2011B Refund GO Improvement Bonds Fund transferred $40,000 to the 2020A GO Capital Improvement Bond fund and $300,000 to the 2021A/2012A GO Refund Improvement Bond Fund with remaining debt service funds. The 2013 Capital Equipment Certificates Fund transferred $369 to the 2021A/2012A GO Refund Improvement Bond Fund with remaining debt service funds. 74 ## NOTE 4 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (CONTINUED) ## C. Interfund Transfers (Continued) The 2014 Capital Equipment Certificates Fund transferred $45,000 to the 2023A Capital Equipment Certificates Fund with remaining debt service funds. The Public Improvement Revolving Fund transferred $200,000 to the General Fund for street maintenance purposes. The Public Improvement Revolving Fund transferred $200,000 to the State-Aid Construction Fund and $32,200 to the Pavement Management Program Fund for street funding contributions. The Equipment Revolving Fund transferred $368,000 to the General Fund for capital equipment purchases. The Water Utility Fund transferred $59,000 to the General Fund for operating purposes. The Sewer Utility Fund transferred $53,000 to the General Fund for operating purposes. The Street Light Utility Fund transferred $31,000 to the General Fund for operating purposes. The Storm Water Utility Fund transferred $49,000 to the General Fund for operating purposes. ## NOTE 5 – CAPITAL ASSETS ## A. Changes in Capital Assets Used in Governmental Activities Balan ce - Co mp let ed Beg in n in gCo n s t ru ct io n /Balan ce - of YearAdditionsAdjustmentsDeletionsEnd of Year Capital assets, not depreciated Land 7,077,591$ –$ –$ –$ 7,077,591$ Con s tru ction in pro gres s12,667,124 4,590,071 (12,537,335) – 4,719,860 Total capital assets, not depreciated19,744,715 4,590,071 (12,537,335) – 11,797,451 Capital assets, depreciated Buildin gs an d s tructu res45,725,837 90,465 – – 45,816,302 Improv ements o th er th an b uild in gs11,936,241 1,534,932 – – 13,471,173 Office eq uip ment725,752 – – – 725,752 Mo to r veh icles5,507,602 141,923 – (201,884) 5,447,641 Machin ery and eq u ipmen t11,665,137 923,470 – (73,539) 12,515,068 In fras tru cture73,765,423 7,645,682 12,537,335 – 93,948,440 Total capital as s ets , d ep reciated149,325,992 10,336,472 12,537,335 (275,423) 171,924,376 Less accumulated depreciation on Buildin gs an d s tructu res(12,224,950) (942,099) – – (13,167,049) Improv ements o th er th an b uild in gs(8,370,623) (602,824) – – (8,973,447) Office eq uip ment(683,144) (35,929) – – (719,073) Mo to r veh icles(3,686,758) (444,019) – 201,884 (3,928,893) Machin ery and eq u ipmen t(6,309,159) (800,694) – 73,539 (7,036,314) In fras tru cture(26,599,644) (3,740,421) – – (30,340,065) ## T ot al accu mu lated d ep reciatio n(57,874,278) (6,565,986) – 275,423 (64,164,841) Total capital assets, depreciated, net91,451,714 3,770,486 12,537,335 – 107,759,535 Net cap ital as s ets111,196,429$ 8,360,557$ –$ –$ 119,556,986$ 75 ## NOTE 5 – CAPITAL ASSETS (CONTINUED) ## B. Changes in Capital Assets Used in Business-Type Activities Balan ce - Co mp let ed BeginningConstruction/Balance - of YearAdditionsAdjustmentsDeletionsEnd of Year Capital assets, not depreciated Land1,506,096$ –$ –$ –$ 1,506,096$ Con s tructio n in p ro gres s22,437,430 12,146,998 (538,715) – 34,045,713 Total cap ital as s ets , n ot depreciated23,943,526 12,146,998 (538,715) – 35,551,809 Capital assets, depreciated Buildin gs and s tructu res6,177,522 – – – 6,177,522 Improvements other than buildings22,887,041 2,304,767 492,677 – 25,684,485 Machinery and equipment1,809,735 1,033,827 – (532,173) 2,311,389 W ater an d s ewer lines76,606,778 3,487,949 46,038 – 80,140,765 Total cap ital as s ets , d epreciated107,481,076 6,826,543 538,715 (532,173) 114,314,161 Less accumulated depreciation on Buildin gs and s tructu res(2,358,799) (123,463) – – (2,482,262) Improv emen ts other th an bu ilding s(6,265,551) (527,982) – – (6,793,533) Machin ery an d equ ipment(894,616) (163,328) – 335,303 (722,641) W ater an d s ewer lines(24,084,549) (1,603,461) – – (25,688,010) Total accu mu lated d ep reciatio n(33,603,515) (2,418,234) – 335,303 (35,686,446) Total cap ital as s ets , d epreciated , net73,877,561 4,408,309 538,715 (196,870) 78,627,715 Net cap ital as s ets97,821,087$ 16,555,307$ –$ (196,870)$ 114,179,524$ ## C. Depreciation Expense by Function Go v ern men t al act iv it ies Gen eral g o v ern men t830,460$ Pu b lic s afety671,675 Hig h way s an d s treets4,419,375 Cu ltu re an d recreatio n644,476 To tal d ep reciatio n – g o v ern men tal activ ities6,565,986$ Bu s in es s -t y p e activ ities W ater u tility1,074,471$ Sewer u tility750,634 Street lig h t u tility30,651 Sto rm water u tility562,478 To tal d ep reciatio n – b u s in es s -ty p e activ ities2,418,234$ 76 ## NOTE 6 – LONG-TERM DEBT ## A.Components of Long-Term Debt FinalBalance – ## Original IssueInterest RateIssue DateMaturity DateEnd of Year Governmental activities Bonds payable ## General Obligation improvement Bonds Series 2015A3,880,000$ 2.00-3.50%06/15/201512/01/20352,270,000$ Series 2016A1,650,000$ 2.00%07/21/201612/15/2026175,000 Series 2017A895,000$ 1.15-2.50%08/17/201712/15/2027190,000 Series 2018A1,175,000$ 3.00%07/17/201812/15/2028375,000 Series 2020A9,055,000$ 1.00-1.65%12/30/202012/15/20419,055,000 Series 2021A9,845,000$ 2.00-3.00%10/19/202112/15/20316,330,000 Series 2022A10,765,000$ 5.00%12/06/202212/15/20379,205,000 Series 2023A6,915,000$ 4.25-5.00%11/15/202312/15/20386,275,000 Total general obligation improvement bonds33,875,000 Cap it al Eq u ip men t Cert ificat es Series 2023A1,400,000$ 5.00%11/15/202312/15/20331,180,000 Unamortized bond premiums1,730,740 Compensated absences payable1,467,069 Net p en s io n liab ilit y4,936,498 To t al OPEB liab ilit y1,457,811 Total governmental activities44,647,118 Business-type activities Net p en s io n liab ilit y362,265 Total government and business-type activities45,009,383$ ## B. ## Descriptions of Long-Term Debt ## •General Obligation Improvement Bonds – The Series 2015A bonds were issued to finance the construction of Fire Station #2 in the City. The Series 2016A were issued to fund the street improvements related to the reconstruction of Andrie Street and 164 th Lane and some overlay projects. The Series 2017A were issued to fund street improvements related to the reconstruction of Alpine Drive and Sunwood Drive. The Series 2018A were issued to fund street improvements related to the reconstruction of Riversbend Avenue and Stanhope Terrace. The Series 2020A were issued to fund approximately 50% of the construction costs of the Public Works Facility in the City. The Series 2021A, a $9,845,000 Capital Improvement Plan Bond, was issued to refund the 2012A Series bonds that were called on December 15, 2021. The Series 2022A were issued to fund the reconstruction and overlay street improvement projects as outlined in the City’s 5-Year Street Reconstruction and Overlay Plan (SROP). The Series 2023A has $6,915,000 of the total $8,315,000 issue to fund improvements in the COR area. 77 ## NOTE 6 – LONG-TERM DEBT (CONTINUED) ## x Capital Equipment Certificates – Series 2023A has $1,400,000 of the total $8,315,000 issue to finance capital equipment purchases and will be repaid via ad valorem levies. Debt service is covered respectively by special assessments, state aids, and general property taxes. General Obligation bonds and equipment certificates are direct obligations and have the pledge of the full faith and credit of the City. x Unamortized Bond Premiums – This amount represents the remaining bond premium that will be amortized against interest expense in the future. x Compensated Absences – The liability represents vested benefits earned by Governmental Fund employees through the end of the year which will be paid or used in future periods. The General Fund is the primary fund used to liquidate this liability. x Net Pension Liability (NPL) – The liability represents the City’s proportionate share of PERA’s collective net pension liability. The General, Water Utility, Sewer Utility and Storm Water Utility funds will be used to liquidate this liability. x Total Other Post-Employment Benefits (OPEB) Liability – The liability represents non-pension benefits provided after the termination of employment. The General Fund is the primary fund used to liquidate this liability. ## C. Changes in Long-Term Debt Balance - ## BeginningBalance - Due Within ## of Year AdditionsDeletionsEnd of YearOne Year Go v ern men t al act iv it ies G.O. Improvement Bonds36,740,000$ –$ 2,865,000$ 33,875,000$ 2,510,000$ Cap ital Eq u ip men t Certificates1,295,000 – 115,000 1,180,000 125,000 Unamortized bond premiums1, 915,176 – 184,436 1,730,740 – Co mp en s ated ab s en ces p ay ab le1,270,328 1,143,599 946,858 1,467,069 69,000 Net p en s io n liab ility5,448,915 9,786,211 10,298,628 4,936,498 – To tal OPEB liab ility1,379,460 166,774 88,423 1,457,811 54,225 Total governmental activities48,048,879 11,096,584 14,498,345 44,647,118 2,758,225 Bu s in es s -t y p e act iv it ies Net p en s io n liab ility370,664 703,010 711,409 362,265 – Total governmental and business ty p e activ ities48,419,543$ 11,799,594$ 15,209,754$ 45,009,383$ 2,758,225$ 78 ## NOTE 6 – LONG-TERM DEBT (CONTINUED) ## D. Minimum Debt Payments Minimum annual principal and interest payments required to retire bonds and capital equipment certificates are as follows: ## Year Ending December 31, ## PrincipalInterest 20262,635,000$ 1,175,209$ 20272,550,000 1,078,159 20282,545,000 979,959 20292,515,000 880,309 20302,610,000 790,959 2031-203512,915,000 2,575,831 2036-20408,320,000 588,895 2041965,000 15,923 35,055,000$ 8,085,243$ ## Governmental Activities ## Bonded and Capital Equipment Certificate Debt ## NOTE 7 – NET INVESTMENT IN CAPITAL ASSETS The government-wide statement of net position at December 31, 2025 includes the City’s net investment in capital assets calculated as follows: ## GovernmentalBusiness-Type ## ActivitiesActivitiesTotal Net investment in capital assets: Capital assets No t d ep reciated11,797,451$ 35,551,809$ 47,349,260$ Dep reciated107,759,535 78,627,715 186,387,250 Less bonds payable(33,875,000) – (33,875,000) Less capital equipment certificates(1,180,000) – (1,180,000) Less unamortized bond premiums(1,730,740) – (1,730,740) Less capital related payables(81,301) (1,976,638) (2,057,939) To tal n et in v es tmen t in cap ital as s ets82,689,945$ 112,202,886$ 194,892,831$ 79 ## NOTE 8 – FUND BALANCE POLICY AND CLASSIFICATION ## A. Classifications City of Ramsey had the following classifications of fund balances in its Governmental Funds: ## Capital Project Funds ## RALFPavement ## TaxFundedState-AidManagementPark ## GeneralIncrementCOR LandProjectsConstructionProgramImprovementNonmajorTotal Fund balances ## Nonspendable Prep aids26,466$ –$ –$ –$ –$ –$ –$ 2,993$ 29,459$ Restricted for Street improvements– – – – 434,487 – – – 434,487 Debt s ervice– – – – – – – 622,753 622,753 Economic development– – – – – – – 1,760,541 1,760,541 Housing and redevelopment– – 4,751,926 – – – – – 4,751,926 Recreation/community programs– – – – – – – 166,166 166,166 Public s afety– – – – – – – 483,390 483,390 Tax increment financing– 2,780,887 – – – – – – 2,780,887 – 2,780,887 4,751,926 – 434,487 – – 3,032,850 11,000,150 Co mmit t e d Stormwater development projects– – – – – – – 1,544,495 1,544,495 Community/business programs– – – – – – – 346,901 346,901 – – – – – – – 1,891,396 1,891,396 ## Assigned Street improvements– – – – – 8,813,381 – 4,767,891 13,581,272 Housing and redevelopment– – 2,213,265 – – – – – 2,213,265 Capital improvements– – – – – – – 2,818,463 2,818,463 Cemetary improvements– – – – – – – 98,770 98,770 Park improvements– – – – – – 11,066,067 – 11,066,067 Right-of-way acquisitions– – – 273,915 – – – – 273,915 Pa rkin g ra mp ma in t e n a n c e– – – – – – – 276,164 276,164 – – 2,213,265 273,915 – 8,813,381 11,066,067 7,961,288 30,327,916 Un as s ig ned14,436,283 – – – – – – – 14,436,283 ## Tota l14,462,749$ 2,780,887$ 6,965,191$ 273,915$ 434,487$ 8,813,381$ 11,066,067$ 12,888,527$ 57,685,204$ ## Special Revenue Funds ## B. Fund Balance Policy – General Fund When General Fund actual revenues exceed actual expenditures in a given year, the excess shall be allocated as follows: a) Any excess shall be first allocated to "unassigned" fund balance to bring that portion of fund balance to an amount equal to fifty percent (50%) of the next years adopted operating budget plus prior-year encumbrances (if any). b) Any excess after complying with fund balance requirements in step “a” shall be allocated to equipment replacement, park trust, public facilities construction, and public improvement revolving funds in the following manner: Thirty percent (30%) to Fund #234 - Equipment Revolving Fund Thirty percent (30%) to Fund #810 – Capital Maintenance Fund (reported in General Fund) Ten percent (10%) to Fund #412 – Public Facilities Construction Fund Thirty percent (30%) to Fund #400 - Public Improvement Revolving Fund 80 ## NOTE 8 – FUND BALANCE POLICY AND CLASSIFICATION (CONTINUED) When General Fund actual expenditures exceed actual revenues in a given year, the deficit shall be treated as follows: a) "Unassigned" fund balance shall first be adjusted to an amount equal to fifty percent (50%) of the next years adopted operating budget plus prior year encumbrances (if any). b) If shortage after complying with fund balance requirement in step “a” shall draw funds in the following manner: Thirty percent (30%) to Fund #234 - Equipment Revolving Fund Thirty percent (30%) to Fund #810 – Capital Maintenance Fund (reported in General Fund) Ten percent (10%) to Fund #412 – Public Facilities Construction Fund Thirty percent (30%) to Fund #400 - Public Improvement Revolving Fund At December 31, 2025, the City has met its general fund balance policy goal. ## NOTE 9 – DEFINED BENEFIT PENSION PLANS SUMMARY The city has reported the following balances for defined benefit pension plans as detailed further in these notes: ## DeferredDeferred ## Net PensionOutflowsInflowsPension Pen s io n Plan sLiab ilit ieso f Res o u rceso f Res o u rcesExp en s e ## PERA - GERF2,415,103$ 997,143$ 1,516,700$ 85,075$ ## PERA - PEPFF2,883,660 4,116,746 5,144,482 762,072 To tal - all p en s io n s5,298,763$ 5,113,889$ 6,661,182$ 847,147$ ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE ## A. Plan Descriptions The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association (PERA) of Minnesota. These plan provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 3535E, 353G, and 356. Minnesota Statutes chapter 356 defines each plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code (IRC). ## 1. General Employees Retirement Fund (GERF) Membership in the GERF includes employees of counties, cities, townships, schools in non-certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. 81 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) ## 2. Public Employees Police and Fire Fund (PEPFF) Membership in the PEPFF includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police & Fire Plan coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the City’s governing body. The resolution must state that the position meets plan requirements. ## B. Benefits Provided The PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. When a member is “vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. ## 1. GERF Benefits GERF requires three years of service to vest. Benefits are based on a member’s highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for GERF members. Members hired prior to July 1, 1989, receive the higher of Step or Level formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, GERF members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7% for each additional year. Under the Level formula, GERF members receive 1.7% of highest average salary for all years of service. For members hired prior to July 1, 1989, a full retirement benefit is available when age plus years of service equal 90 and normal retirement age is 65. Members can receive a reduced retirement benefit as early as age 55 if they have three or more years of service. Early retirement benefits are reduced by .25% for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of .25% for each month the member is younger than age 62. The Level formula allows GERF members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989, or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The post-retirement increase is equal to 50.00% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1.00% and a maximum of 1.50%. The 2025 annual increase was 1.25%. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for a least one month, but less that a full year as of the June 30 before the effective date of the increase, will receive a prorated increase. 82 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) ## 2. PEPFF Benefits Benefits for the PEPFF members hired before July 1, 2010, are vested after three years of service. Members hired on or after July 1, 2010, are 50.00% vested after five years of service and 100% vested after 10 years. After five years, vesting increases by 10.00% each full year of service until members are 100% vested after ten years. PEPFF members receive 3.00% of highest average salary for all years of service. PEPFF members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417% each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The post-retirement increase is fixed at 1.00%. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase, will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months, but less than 36 months as of the June 30 before the effective date of the increase, will receive a prorated increase. ## C. Contributions Minnesota Statutes chapters 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. ## 1. GERF Contributions GERF members were required to contribute 6.50% of their annual covered salary in fiscal year 2025, and the City was required to contribute 7.50% for GERF members. The City’s contributions to the GERF for the year ended December 31, 2025, were $531,570. The City’s contributions were equal to the required contributions as set by state statutes. ## 2. PEPFF Contributions Plan members were required to contribute 11.80% of their annual covered salary in fiscal year 2025, and the City was required to contribute 17.70% for PEPFF members. The City’s contributions to the PEPFF for the year ended December 31, 2025, were $698,091. The City’s contributions were equal to the required contributions as set by state statutes. ## D. Pension Costs ## 1. GERF Pension Costs At December 31, 2025, the City reported a liability of $2,415,103 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $58,260. 83 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) City’s proportionate share of the net pension liabilit y2,415,103$ State of Minnesota's proportionate share of the net p en s io n liab ilit y as s o ciat ed wit h t h e Cit y58,260 To tal2,473,363$ The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2024, through June 30, 2025, relative to the total employer contributions received from all of the PERA’s participating employers. The City’s proportionate share was 0.0729% at the end of the measurement period and 0.0668% for the beginning of the period. For the year ended December 31, 2025, the City recognized pension expense of $94,011 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $8,936 as negative pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the GERF. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ## DeferredDeferred ## OutflowsInflows ## of Resourcesof Resources Differences between expected and actual economic experience230,106$ –$ Changes in actuarial assumptions58,190 555,707 Net difference between projected and actual earnings on pension plan investments– 960,993 Changes in proportion438,552 – Employer contributions subsequent to the meas u remen t d ate270,295 – To tal997,143$ 1,516,700$ The $270,295 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2026. 84 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pens ion ## Year EndingExpense December 31,Amount 2026(82,659)$ 2027(291,924) 2028(243,596) 2029(171,673) To tal(789,852)$ ## 2. PEPFF Pension Costs At December 31, 2025, the City reported a liability of $2,883,660 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates July 1, 2024, through June 30, 2025, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.2461% at the end of the measurement period and 0.2545% for the beginning of the period. The State of Minnesota contributed $18 million to the PEPFF in the plan fiscal year ended June 30, 2025. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The $9 million direct state aid was paid on October 1, 2024. The direct state aid payment will increase by $17.7 million which was paid on October 1, 2025. Thereafter, by October 1 of each year, the state will pay $26.7 million to the PEPFF until the fund is 110% funded for a minimum of three consecutive years (on an actuarial value of assets basis). The $9 million in supplemental state aid will continue until the fund and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100% funded for three consecutive years (on an actuarial value of assets basis). The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $99,962. The amount recognized by the City as its proportionate share of the net pension liability, the direct aid, and total portion of the net pension liability that was associated with the City were as follows: City’s proportionate share of the net pension liabilit y2,883,660$ State of Minnesota’s proportionate share of the net p en s io n liab ilit y as s o ciat ed wit h t h e Cit y99,962 To tal2,983,622$ 85 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) For the year ended December 31, 2025, the City recognized pension expense of $713,706 for its proportionate share of the PEPFF Plan’s pension expense. The City recognized $48,366 as grant revenue and pension expense for its proportionate share of the State of Minnesota’s pension expense for the contribution of $9 million to the PEPFF special funding situation. The State of Minnesota is not included as a non-employer contributing entity in the PEPFF pension allocation schedules for the $9 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $65,713 for the year ended December 31, 2025 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF. At December 31, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ## DeferredDeferred ## OutflowsInflows ## of Resourcesof Resources Differences between expected and actual economic experience1,332,343$ –$ Ch an g es in actu arial as s u mp tio n s2,186,739 3,613,105 Net difference between projected and actual earnings on pension plan investments– 1,287,018 Changes in proportion233,455 244,359 Employer contributions subsequent to the meas u remen t d ate364,209 – To tal4,116,746$ 5,144,482$ The $364,209 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Pens ion ## Year EndingExpense December 31,Amount 2026692,985$ 2027(637,040) 2028(1,436,587) 2029(62,691) 203051,388 To tal(1,391,945)$ 86 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) ## E. Long-Term Expected Return on Investments The Minnesota State Board of Investment, which manages the investments of the 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 assess allocation percentages. The target allocation and best-estimates of geometric real rates of return for each major asset class are summarized in the following table: ## Asset Class Domestic Equity33.50 %5.10 % ## International Equity 16.50 5.30 % ## Fixed Income 25.00 0.75 % ## Private Markets 25.00 5.90 % To tal100.00 % A llo cat io n ## Target Real Rat e o f Ret u rn ## Long-Term Expected ## F. Actuarial Methods and Assumptions The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as of June 30, 2025, using the entry age normal actuarial cost method. The long-term rate of return on pension plan investments used to determine the total liability is 7.0%. The 7% assumption is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates considered reasonable by the actuary. An investment return of 7% is within that range. Inflation is assumed to be 2.25% for the GERF and the PEPFF. Benefit increases after retirement are assumed to be 1.5% for the GERF and 1.0% for the PEPFF. Salary growth assumptions in the GERF range in annual increments from 11.5% after one year of service to 3.00% after 27 years of service. In the PEPFF, salary growth assumptions range in annual increments from 10.75% after one year of service to 3.00% after 23 years of service. Mortality rates for the GERF are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the PEPFF are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for the GERF are reviewed every four years. The GERF was last reviewed in 2022. The assumption changes were adopted by the Board and became effective with the July 1, 2023 actuarial valuation. The PEPFF Plan was reviewed in 2024. The assumption changes were adopted by the Board and became effective with the July 1, 2025 actuarial valuation. 87 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) The following changes in actuarial assumptions occurred in 2025: ## 1. GERF x The combined service annuity loading factors increased from 15% to 19% for vested terminated members and from 3% to 44% for non-vested, terminated members. x The assumed post-retirement benefit increase changed from 1.25% to 1.5% ## 2. PEPFF x Assumed rates of salary increases were reduced slightly. x Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. x Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. x Assumed rates of disabled retirement were significantly increased, especially for ages over 30. x Continued use of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. x Percent married assumption for female retirees lowered from 70% to 65%. x Minor changes were made to form of payment assumptions for retirees. x Minor changes were made to assumptions made with respect to missing participant data. x The combined service annuity load changed from 33% to 13% for vested, terminated members and from 2% to 38% for non-vested, terminated members. The following changes in plan provisions occurred in 2025: ## 1. GERF x The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less that 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%. x The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. ## 2. PEPFF x 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). x The January 1, 2026 benefit increase changed from 1% to 3%; subsequent January 1 increases will be 1%. x 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 PEPFF and MSRS State Patrol for three consecutive years to 100% funded for both PERA PEPFF and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). x 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). x A n additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. x Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. 88 ## NOTE 10 – DEFINED BENEFIT PENSION PLANS – STATE-WIDE (CONTINUED) ## G. Discount Rate The discount rate used to measure the total pension liability in 2025 was 7.0%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net positions of the GERF and the PEPFF were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. ## H. Pension Liability Sensitivity The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease inCurrent1% Increase in ## Discount RateDiscount RateDiscount Rate 6.00%7.00%8.00% ## The City’s P roportionate Share of the GER F N e t P e ns ion Lia bility:5,865,907$ 2,415,103$ (384,275)$ ## The City’s P roportionate Share of the P EP FF N e t P e ns ion Lia bility:7, 555,800$ 2,883,660$ (952,905)$ ## I. Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the internet at www.mnpera.org. ## NOTE 11 – DEFINED CONTRIBUTION PLAN – STATE-WIDE All City Council members of the City are covered by the Public Employees Defined Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by PERA. The PEDCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D and 356, specifies plan provisions, including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5% of their salary which is matched by the elected official's employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to make member contributions in an amount not to exceed the employer share. 89 ## NOTE 11 – DEFINED CONTRIBUTION PLAN – STATE-WIDE (CONTINUED) Employer and employee contributions are combined and used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five hundredths of 1% (.25 percent) of the assets in each member's account annually. Total contributions made by the City during fiscal year 2025 were: ## For the Year Ended:EmployeeEmployerEmployeeEmployer December 31, 2025 $900$9005%5% 5% ## ContributionRequired Rate for AmountEmployees and ## Percentage of Covered ## Payroll ## Employers ## NOTE 12 – DEFINED CONTRIBUTION PENSION PLAN – FIRE RELIEF ASSOCIATION ## A. Plan Description Volunteer firefighters of the City are members of the Ramsey Firefighter’s Relief Association (the Association). The Association is a single-employer defined contribution pension plan that operates under the provisions of Minnesota Statutes § 69 and 424, as amended. It is governed by a Board of six officers and trustees elected by the members of the Association for three year terms. The chief of the Ramsey Volunteer Fire Department, the Mayor, and the Finance Director of the City are ex-officio members of the Board of Trustees. The City’s payroll for members of the Association for the year ended December 31, 2025 was $344,528, compared to a total city payroll of $13,049,273. For financial reporting purposes, the Association’s financial statements are not included in the City’s financial statements because it is not a component unit of the City. The Association issues a publicly available financial report. A copy of the report may be obtained at Ramsey Municipal Center, 7550 Sunwood Drive Northwest, Ramsey, Minnesota 55303. ## B. Pension Benefits Minnesota Statutes Chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. In order to be entitled to a pension benefit, a firefighter must have completed a minimum of 10 years of service with the fire department, 10 years membership in the Association, and attain the age of 50 years. The firefighter will then be 60% vested with every year after that at 4% per year until the 20th year when 100% vesting will occur. Because this plan is a defined contribution plan, the amount of the retirement benefit is not predetermined, but rather is based on the individual member’s allocable portion of contributions made during the participation period. Firefighters also have the availability of other pensions such as deferred pension, disability pension, death benefits, and supplemental death benefits. Each of these other pensions are determined based on age and years of service. ## C. Contributions Required and Contributions Made Contributions to the plan include State Fire Aid pursuant to Minnesota Statutes Chapter 69. In addition, the City is allowed to make voluntary contributions of other public funds pursuant to Minnesota Statutes Chapter 69. The City’s contribution to the Association in 2025, including both city and state fire aid passed through the City totaled $294,644. This contribution represents nearly 86% of the current 2025 covered payroll of $344,528. There were no current year changes in plan provisions. 90 ## NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN ## A. Plan Description The City provides post-employment health care benefits for retired employees through a single employer defined benefit plan. The term plan refers to the City’s requirement by State Statute to provide retirees with access to health insurance. The OPEB plan is administered by the City. All post-employment benefits are based on contractual agreements with employee groups. Eligibility for these benefits is based on years of service and/or minimum age requirements. These contractual agreements do not include any specific contribution or funding requirements. The plan does not issue a publicly available financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. ## B. Benefits Provided All retirees of the City have the option under state law to continue their medical insurance coverage through the City from the time of retirement until the employee reaches the age of eligibility for Medicare. For members of all employee groups, the retiree must pay the full premium to continue coverage for medical and dental insurance. Per state statutes, the City is also required to contribute towards the cost of continued health insurance coverage for officers and firefighters disabled or killed in the line of duty. The City is legally required to include any retirees for whom it provides health insurance coverage in the same insurance pool as its active employees until the retiree reaches Medicare eligibility, whether the premiums are paid by the City or the retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the assumption that the retiree is receiving a more favorable premium rate than they would otherwise be able to obtain if purchasing insurance on their own, due to being included in the same pool with the City’s younger and statistically healthier active employees. ## C. Contributions The required contribution is based on projected pay-as-you-go financing requirements, with additional amounts to prefund benefits as determined periodically by the City. The City’s current year required pay- as-you-go contributions to finance the benefits described in the previous section totaled $54,225. ## D. Membership Membership in the plan consisted of the following as of the latest actuarial valuation: Retirees and beneficiaries receiving benefits4 Active plan members100 T o t a l me mb e rs104 ## E. Total OPEB Liability of the City The City’s total OPEB liability of $1,457,811 as of year-end was measured as of December 31, 2024, and was determined by an actuarial valuation as of December 31, 2023. 91 ## NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) ## F. Actuarial Methods and Assumptions The total OPEB liability was determined by an actuarial valuation as of December 31, 2023, using the entry age normal level percent of pay method. The following actuarial assumptions applied to all periods included in the measurement, unless otherwise specified: Dis co u n t rate4.08% 20-year municipal bond yield4.08% In flatio n rate2.60% Salary increases3.00% Healthcare cost trend rate7.75% grading to 4.00% over several decades Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-year municipal bond yield. ## G. Changes in the Total OPEB Liability ## Total OPEB Liab ilit y Beginning balance 1,379,460$ Changes for the year Serv ice co s t117,053 Interes t55,482 Differences between expected and actual experience(5,761) Changes of assumptions(38,715) Ben efit p aymen ts(49,708) Total net changes78,351 Ending balance1,457,811$ Assumption changes since the prior measurement date include the following: • The discount rate was changed from 3.77 percent to 4.08 percent. H. Total OPEB Liability Sensitivity to Discount and Healthcare Cost Trend Rate Changes The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point higher than the current discount rate: OPEB discount rate To t al OPEB liab ility 1% Decrease in1% Increase in ## Discount RateRateDiscount Rate ## Discount 3.08%4.08%5.08% 1,586,501$ 1,457,811$ 1,339,991$ 92 ## NOTE 13 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED) The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower or 1 percentage point higher than the current healthcare cost trend rates: OPEB healthcare trend To tal OPEB liab ility 1,276,714$ 1,457,811$ 1,673,500$ 1% Decrease in1% Increase in ## Healthcare Cost ## Healthcare Cost Trend RateTrend RateHealthcare Cost Trend Rate 6.75% g rad in g to 3.00%7.75% g rad in g to 4.00%8.75% g rad in g to 5.00% over several decadesover several decadesover several decades I. OPEB Expense and Related Deferred Outflow of Resources and Deferred Inflows of Resources For the current year ended, the City recognized OPEB expense of $187,003. As of year-end, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: ## DeferredDeferred ## OutflowsInflows ## of Resourcesof Resources Differences between expected and actual economic experience652,037$ 154,748$ Changes of assumptions87,856 346,267 City contributions subsequent to the measurement date54,225 – To tal794,118$ 501,015$ A total of $54,225 reported as deferred outflows of resources related to OPEB resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending December 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: December 31,Amount 202614,468$ 202714,468 202813,267 202915,187 203045,670 ## Thereafter135,818 ## Total $ 238,878 93 ## NOTE 14 – TAX ABATEMENT AGREEMENTS The City, in order to spur economic development, housing and redevelopment will enter into private development and redevelopment agreements to encourage a developer to construct, expand, or improve new or existing properties and buildings or clean-up and redevelop blighted properties. The City made payments on four private development agreements for redevelopment that would be considered a tax abatement under GASB Statement 77 as of December 31, 2025. The City issued these four agreements through the economic development vehicle known as tax increment financing whereby tax increment revenue is generated on the incremental increase in value above a base established on the date that the tax increment district is created. Per these agreements, the developer shall initially pay for the development property and any site improvements with the City reimbursing these expenses through the issuance of a tax increment revenue note payable solely from the tax increments generated from the project. The City is authorized to create a tax increment financing plan under Minnesota Statute 469.175. Under this statute, the following criteria must be met: • Proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future; • The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the plan. The requirements of this item do not apply if the district is a housing district; • The tax increment financing plan conforms to the general plan for the development or redevelopment of the municipality as a whole; • The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the municipality as a whole, for the development or redevelopment of the project by private enterprise. For the fiscal year ended December 31, 2025, the City abated property taxes totaling $539,688 related to the following: • Redevelopment: $231,080 abated towards a $3,000,000 Tax Increment Revenue Note issued in 2015 for the construction of a 230-unit apartment building. Final note payment date is February 2038. • Redevelopment: $9,117 abated for a $218,000 Tax Increment Revenue Note issued in 2019 for a 56,000 square-foot industrial building in Bunker Lake Business Park. Final note payment date was February 2025. • Redevelopment: $170,814 abated for a $972,000 Tax Increment Revenue Note issued in 2021 for a 210,000 square-foot manufacturing building in Bunker Lake Business Park. Final note payment date is February 2030. 94 ## NOTE 14 – TAX ABATEMENT AGREEMENTS (CONTINUED) x Redevelopment: $128,677 abated for a $1,172,000 Tax Increment Revenue Note issued in 2023 for a 2,940,000 square-foot manufacturing building in Bunker Lake Business Park. Final note payment date is February 2032. The outstanding principal balance as of December 31, 2025 for all agreements was $2,441,731. This amount is not included in long-term debt because of the nature of these notes in that repayment is required only if sufficient tax increments are received. The City’s position is that these are obligations to assign future and uncertain revenue sources and these obligations are not actual debt in substance. ## NOTE 15 – INDUSTRIAL AND LEASE REVENUE BONDS From time to time, the City has issued Industrial Revenue Bonds and Lease 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 of Minnesota, 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 was one series of a Lease Revenue Bond outstanding with an aggregate principal amount payable of $41,395,000. ## NOTE 16 – COMMITMENTS AND CONTINGENCIES ## A. Commitments for Construction At December 31, 2025, the City is committed to various construction contracts for the improvement of city property. The City’s remaining commitment under these contracts is $1,124,901. The City has resources available to cover these commitments. ## B. Federal and State Revenue Amounts received or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. ## C. Legal Claims The City has the usual and customary type of miscellaneous legal claims pending at year-end. Although the outcome of these lawsuits is not presently determinable, the City’s management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City’s financial statements relating to these claims. ## D. Tax Increment Districts The City’s tax increment districts are subject to review by the state of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which would have a material effect on the financial statements. 95 ## PAGE INTENTIONALLY LEFT BLANK 96 ## REQUIRED SUPPLEMENTARY INFORMATION 97 ## PAGE INTENTIONALLY LEFT BLANK 98 ## Proportionate Share of the ## City’sNet Pension ProportionateLiability andCity’s ## Share of thethe City’sProportionatePlan Fiduciary State ofShare of theShare of theNet Position City’sCity’sMinnesota’sState ofNet Pensionas a PERA FiscalProportionProportionateProportionateMinnesota’sLiability as aPercentage Year-End Dateof the Net Share of theShare of theShare of theCity’sPercentage ofof the Total ## City Fiscal(MeasurementPensionNet PensionNet PensionNet PensionCoveredCoveredPension ## Year-End DateDate)LiabilityLiabilityLiabilityLiabilityPayrollPayrollLiability 12/31/201606/30/20160.0508%4,124,708$ 53,908$ 4,178,616$ 3,154,867$ 130.74% 68.90% 12/31/201706/30/20170.0551%3,517,550$ 44,220$ 3,561,770$ 3,550,067$ 99.08% 75.90% 12/31/201806/30/20180.0527%2,923,581$ 95,848$ 3,019,429$ 3,542,360$ 82.53% 79.50% 12/31/201906/30/20190.0530%2,930,253$ 91,163$ 3,021,416$ 3,752,320$ 78.09% 80.20% 12/31/202006/30/20200.0566%3,393,429$ 104,560$ 3,497,989$ 4,036,013$ 84.08% 79.10% 12/31/202106/30/20210.0617%2,634,866$ 80,483$ 2,715,349$ 4,313,560$ 61.08% 87.00% 12/31/202206/30/20220.0603%4,775,781$ 140,084$ 4,915,865$ 4,518,169$ 105.70% 76.70% 12/31/202306/30/20230.0620%3,466,971$ 95,709$ 3,562,680$ 4,933,640$ 70.27% 83.10% 12/31/202406/30/20240.0668%2,471,091$ 63,897$ 2,534,988$ 5,657,184$ 43.68% 89.10% 12/31/202506/30/20250.0729%2,415,103$ 58,260$ 2,473,363$ 6,601,070$ 36.59% 90.80% ## ContributionsContributions in Relation toas a ## Statutorilythe StatutorilyContributionPercentage ## City FiscalRequiredRequiredDeficiencyCoveredof Covered ## Year-End DateContributionsContributions(Excess)PayrollPayroll 12/31/2016247,279$ 247,279$ –$ 3,297,053$ 7.50% 12/31/2017261,117$ 261,117$ –$ 3,481,560$ 7.50% 12/31/2018271,321$ 271,321$ –$ 3,617,613$ 7.50% 12/31/2019293,639$ 293,639$ –$ 3,915,187$ 7.50% 12/31/2020312,137$ 312,137$ –$ 4,161,827$ 7.50% 12/31/2021330,724$ 330,724$ –$ 4,409,653$ 7.50% 12/31/2022346,788$ 346,788$ –$ 4,624,488$ 7.50% 12/31/2023400,688$ 400,688$ –$ 5,342,507$ 7.50% 12/31/2024454,460$ 454,460$ –$ 6,060,123$ 7.50% 12/31/2025531,570$ 531,570$ –$ 7,087,602$ 7.50% ## CITY OF RAMSEY ## PERA – General Employees Retirement Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability ## PERA – General Employees Retirement Fund ## Schedule of City Contributions 99 ## Proportionate Share of the ## City’sNet Pension ProportionateLiability andCity’s ## Share of thethe City’sProportionatePlan Fiduciary State ofShare of theShare of theNet Position City’sCity’sMinnesota’sState ofNet Pensionas a PERA FiscalProportionProportionateProportionateMinnesota’sLiability as aPercentage Year-End Dateof the NetShare of theShare of theShare of theCity’sPercentage ofof the Total ## City Fiscal(MeasurementPensionNet PensionNet PensionNet PensionCoveredCoveredPension ## Year-End DateDate)LiabilityLiabilityLiabilityLiabilityPayrollPayrollLiability 12/31/201606/30/20160.2080%8,347,402$ –$ 8,347,402$ 2,000,574$ 417.25% 63.90% 12/31/201706/30/20170.2190%2,956,761$ –$ 2,956,761$ 2,243,957$ 131.77% 85.40% 12/31/201806/30/20180.2161%2,303,404$ –$ 2,303,404$ 2,277,516$ 101.14% 88.80% 12/31/201906/30/20190.2331%2,481,585$ –$ 2,481,585$ 2,458,454$ 100.94% 89.30% 12/31/202006/30/20200.2397%3,159,502$ 74,418$ 3,233,920$ 2,703,294$ 116.88% 87.20% 12/31/202106/30/20210.2447%1,888,825$ 84,916$ 1,973,741$ 2,891,892$ 65.31% 93.70% 12/31/202206/30/20220.2573%11,196,681$ 489,060$ 11,685,741$ 3,125,648$ 358.22% 70.50% 12/31/202306/30/20230.2407%4,156,576$ 167,433$ 4,324,009$ 3,160,708$ 131.51% 86.50% 12/31/202406/30/20240.2545%3,348,488$ 127,643$ 3,476,131$ 3,524,438$ 95.01% 90.20% 12/31/202506/30/20250.2461%2,883,660$ 99,962$ 2,983,622$ 3,735,246$ 77.20% 91.80% ## ContributionsContributions in Relation toas a ## Statutorilythe StatutorilyContributionPercentage ## City FiscalRequiredRequiredDeficiencyCoveredof Covered ## Year-End DateContributionsContributions(Excess)PayrollPayroll 12/31/2016339,699$ 339,699$ –$ 2,096,907$ 16.20% 12/31/2017357,524$ 357,524$ –$ 2,206,938$ 16.20% 12/31/2018382,968$ 382,968$ –$ 2,364,000$ 16.20% 12/31/2019433,917$ 433,917$ –$ 2,559,982$ 16.95% 12/31/2020492,217$ 492,217$ –$ 2,780,887$ 17.70% 12/31/2021541,368$ 541,368$ –$ 3,058,576$ 17.70% 12/31/2022553,715$ 553,715$ –$ 3,128,333$ 17.70% 12/31/2023591,359$ 591,359$ –$ 3,341,011$ 17.70% 12/31/2024641,383$ 641,383$ –$ 3,623,633$ 17.70% 12/31/2025698,091$ 698,091$ –$ 3,944,013$ 17.70% ## PERA – Public Employees Police and Fire Fund Schedule of City’s and Nonemployer Proportionate Share of Net Pension Liability ## CITY OF RAMSEY ## PERA – Public Employees Police and Fire Fund ## Schedule of City Contributions 100 ## CITY OF RAMSEY ## Other Post-Employment Benefits Plan ## Schedule of Changes in the City's Total ## OPEB Liability and Related Ratios ## Fiscal Year 20182019202020212022202320242025 ## Total OPEB liability Service cost40,892$ 74,389$ 55,942$ 69,584$ 81,145$ 119,416$ 91,803$ 117,053$ Interest22,858 24,695 30,837 14,428 13,589 18,686 35,055 55,482 Differences between expected and actual experience– – (368,975) 6,307 510,595 1,371 433,178 (5,761) Changes of assumptions19,347 (41,435) 47,099 20,586 (365,412) (123,730) 66,721 (38,715) Benefit payments (3,349) (3,476) (2,775) (9,111) (6,965) (17,207) (42,119) (49,708) Net change in total OPEB liability79,748 54,173 (237,872) 101,794 232,952 (1,464) 584,638 78,351 Total OPEB liability – beginning of year565,491 645,239 699,412 461,540 563,334 796,286 794,822 1,379,460 Total OPEB liability – end of year645,239$ 699,412$ 461,540$ 563,334$ 796,286$ 794,822$ 1,379,460$ 1,457,811$ Covered-employee payroll5,400,000$ 5,600,000$ 6,400,000$ 6,700,000$ 6,800,000$ 7,600,000$ 8,300,000$ 9,500,000$ Total OPEB liability as a percentage of covered-employee payroll11.95%12.49%7.21%8.41%11.71%10.46%16.62%15.35% Note 1: Note 2:The City implemented GASB Statement No. 75 in fiscal 2018. This information is not available for previous fiscal years. Additional years' information will be displayed as it becomes available. Note 3:No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. There are no factors that affect trends in the amounts reported, such as changes in benefit terms or assumptions. Changes in Actuarial Assumptions. (1) 2025 Changes - The discount rate was changed form 3.77 percent to 4.08 percent. (2) 2024 Changes - The discount rate was changed from 4.05 percent to 3.77 percent. Inflation rate was changed from 2.50 percent to 2.60 percent. The healthcare trend rates were updated for changes in recent studies and inflationary adjustments. (3) 2023 Changes - The discount rate was changed from 2.06 percent to 4.05 percent. (4) 2022 Changes - The discount rate was changed from 2.12 percent to 2.06 percent. The healthcare trend rates and plan experience assumptions were updated for changes in recent studies and inflationary adjustments. (5) 2021 Changes - The discount rate was changed from 2.74 percent to 2.12 percent. The healthcare trend rates were updated for changes in recent studies and inflationary adjustments. (6) 2020 Changes - The discount rate was changed from 4.09 percent to 2.74 percent. The healthcare trend rates, mortality tables, and payroll growth rates were updated for changes in recent studies and inflationary adjustments. (7) 2019 Changes - The discount rate was changed from 3.44 percent to 4.09 percent. (8) 2018 Changes - The discount rate was changed from 4.50 percent to 3.44 percent. 101 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## General Employees Retirement Fund ## Year Ended December 31, 2025 ## 2025 CHANGES IN ACTUARIAL ASSUMPTIONS • The combined service annuity loading factors increased from 15% to 19% for vested terminated members and from 3% to 44% for non-vested, terminated members. • The assumed post-retirement benefit increase changed from 1.25% to 1.5%. ## 2025 CHANGES IN PLAN PROVISIONS • The post-retirement benefit increase formula changed to 100% of the Social Security annual increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85% for the last two consecutive annual valuations or is less than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously, the benefit increase was 50.00% of the Social Security annual increase, between 1% and 1.5%. • The 1% additional employer contribution is eliminated when the plan reaches 98% funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100% funded status. ## 2024 CHANGES IN ACTUARIAL ASSUMPTIONS • Rates of merit and seniority were adjusted, resulting in slightly higher rates. • Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2 members. • Minor increase in assumed withdrawals for males and females. • Lower rates of disability. • Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent experience study. • Minor changes to form of payment assumptions for male and female retirees. • Minor changes to assumptions made with respect to missing participant data. ## 2024 CHANGES IN PLAN PROVISIONS • The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes in assumptions. ## 2023 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return assumption and single discount rate were changed from 6.50 percent to 7.00 percent. 102 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## General Employees Retirement Fund (continued) ## Year Ended December 31, 2025 ## 2023 CHANGES IN PLAN PROVISIONS • An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. • The vesting period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. • The benefit increase delay for early retirements on or after January 1, 2024 was eliminated. • A one-time, non-compounding benefit increase of 2.50 percent minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024. ## 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. ## 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. ## 2020 CHANGES IN ACTUARIAL ASSUMPTIONS • The price inflation assumption was decreased from 2.50 percent to 2.25 percent. • The payroll growth assumption was decreased from 3.25 percent to 3.00 percent. • Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25 percent less than previous rates. • Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. • Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter. • Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females. • The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2021 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments. • The mortality improvement scale was changed from Scale MP-2018 to MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. 103 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## General Employees Retirement Fund (continued) ## Year Ended December 31, 2025 ## 2020 CHANGES IN ACTUARIAL ASSUMPTIONS (CONTINUED) •The assumed number of married male new retirees electing the 100 percent Joint and Survivor option changed from 35 percent to 45 percent. The assumed number of married female new retirees electing the 100 percent Joint and Survivor option changed from 15 percent to 30 percent. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. ## 2020 CHANGES IN PLAN PROVISIONS •Augmentation for current privatized members was reduced to 2.00 percent for the period July 1, 2020 through December 31, 2023 and zero percent after. Augmentation was eliminated for privatizations occurring after June 30, 2020. ## 2019 CHANGES IN ACTUARIAL ASSUMPTIONS •The mortality projection scale was changed from MP-2017 to MP-2018. ## 2019 CHANGES IN PLAN PROVISIONS •The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state’s special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031. ## 2018 CHANGES IN ACTUARIAL ASSUMPTIONS •The mortality projection scale was changed from MP-2015 to MP-2017. •The assumed benefit increase was changed from 1.00 percent per year through 2044, and 2.50 percent per year thereafter, to 1.25 percent per year. ## 2018 CHANGES IN PLAN PROVISIONS •The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024. •Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. •Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. •Contribution stabilizer provisions were repealed. •Post-retirement benefit increases were changed from 1.00 percent per year with a provision to increase to 2.50 percent upon attainment of 90.00 percent funding ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019. 104 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## General Employees Retirement Fund (continued) ## Year Ended December 31, 2025 ## 2018 CHANGES IN ACTUARIAL ASSUMPTIONS (CONTINUED) •For retirements on or after January 1, 2024, the first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients, or survivors. •Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. ## 2017 CHANGES IN ACTUARIAL ASSUMPTIONS •The Combined Service Annuity (CSA) loads were changed from 0.80 percent for active members and 60.00 percent for vested and nonvested deferred members. The revised CSA loads are now zero percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for nonvested deferred member liability. •The assumed post-retirement benefit increase rate was changed from 1.00 percent per year for all years, to 1.00 percent per year through 2044, and 2.50 percent per year thereafter. ## 2017 CHANGES IN PLAN PROVISIONS •The state’s contribution for the Minneapolis Employees Retirement Fund equals $16.0 million in 2017 and 2018, and $6.0 million thereafter. •The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21.0 million to $31.0 million in calendar years 2019 to 2031. The state’s contribution changed from $16.0 million to $6.0 million in calendar years 2019 to 2031. ## 2016 CHANGES IN ACTUARIAL ASSUMPTIONS •The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter, to 1.00 percent per year for all years. •The assumed investment return was changed from 7.90 percent to 7.50 percent. The single discount rate changed from 7.90 percent to 7.50 percent. •Other assumptions were changed pursuant to the experience study June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth, and 2.50 for inflation. 105 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## Public Employees Police and Fire Fund ## Year Ended December 31, 2025 ## 2025 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 of 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. ## 2025 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% to 3%; subsequent January 1 increases will be 1%. •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 PEPFF and MSRS State Patrol for three consecutive years to 100% funded for both PERA PEPFF 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. 106 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## Public Employees Police and Fire Fund (continued) ## Year Ended December 31, 2025 ## 2024 CHANGES IN PLAN PROVISIONS • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol Retirement Fund attain 90 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90 percent funded status for one year. • The additional $9.0 million contribution will continue until the Police & Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1, 2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets basis for one year (or July 1, 2048 if earlier). ## 2023 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return assumption was changed from 6.50 percent to 7.00 percent. • The single discount rate changed from 5.40 percent to 7.00 percent. ## 2023 CHANGES IN PLAN PROVISIONS • Additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. • Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with 50.00 percent vesting after five years, increasing incrementally to 100.00 percent after 10 years. • A one-time, non-compounding benefit increase of 3.00 percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. • Psychological treatment is required effective July 1, 2023, prior to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. • The total and permanent duty disability benefit was increased, effective July 1, 2023. ## 2022 CHANGES IN ACTUARIAL ASSUMPTIONS • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. • The single discount rate was changed from 6.50 percent to 5.40 percent. ## 2021 CHANGES IN ACTUARIAL ASSUMPTIONS • The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. • The inflation assumption was changed from 2.50 percent to 2.25 percent. • The payroll growth assumption was changed from 3.25 percent to 3.00 percent. 107 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## Public Employees Police and Fire Fund (continued) ## Year Ended December 31, 2025 ## 2021 CHANGES IN ACTUARIAL ASSUMPTIONS (CONTINUED) •The base mortality table for healthy annuitants and employees was changed from the RP-2014 Table to the Pub-2010 Public Safety Mortality Table. The mortality improvement scale was changed from MP-2019 to MP-2020. •The base mortality table for disabled annuitants was changed from the RP-2014 Healthy Annuitant Mortality Table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety Disabled Annuitant Mortality Table (with future mortality improvement according to Scale MP-2020). •Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. •Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. •Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes would result in more assumed terminations. •Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. •Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. ## 2020 CHANGES IN ACTUARIAL ASSUMPTIONS •The mortality projection scale was changed from MP-2018 to MP-2019. ## 2019 CHANGES IN ACTUARIAL ASSUMPTIONS •The mortality projection scale was changed from MP-2017 to MP-2018. ## 2018 CHANGES IN ACTUARIAL ASSUMPTIONS •The mortality projection scale was changed from MP-2016 to MP-2017. ## 2018 CHANGES IN PLAN PROVISIONS •Post-retirement benefit increases were changed to 1.00 percent for all years, with no trigger. •An end date of July 1, 2048 was added to the existing $9.0 million state contribution. •New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million thereafter, until the plan reaches 100.00 percent funding, or July 1, 2048, if earlier. •Member contributions were changed from 10.80 percent to 11.30 percent of pay, effective January 1, 2019, and 11.80 percent of pay, effective January 1, 2020. •Employer contributions were changed from 16.20 percent to 16.95 percent of pay, effective January 1, 2019, and 17.70 percent of pay, effective January 1, 2020. 108 ## CITY OF RAMSEY ## Notes to Required Supplementary Information ## Public Employees Police and Fire Fund (continued) ## Year Ended December 31, 2025 ## 2018 CHANGES IN PLAN PROVISIONS (CONTINUED) • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to zero percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions. ## 2017 CHANGES IN ACTUARIAL ASSUMPTIONS • Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. • Assumed rates of retirement were changed, resulting in fewer retirements. • The CSA load was 30.00 percent for vested and nonvested deferred members. The CSA has been changed to 33.00 percent for vested members, and 2.00 percent for nonvested 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 3.00 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. • Assumed percentage of married female members was decreased from 65.00 percent to 60.00 percent. • Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. • The assumed percentage of female members electing joint and survivor annuities was increased. • The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years, to 1.00 percent per year through 2064, and 2.50 percent thereafter. • The single discount rate was changed from 5.60 percent per annum to 7.50 percent per annum. ## 2016 CHANGES IN ACTUARIAL ASSUMPTIONS • The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037, and 2.50 percent per year thereafter, to 1.00 percent per year for all future years. • The assumed investment return was changed from 7.90 percent to 7.50 percent. • The single discount rate changed from 7.90 percent to 5.60 percent. • The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth, and 2.50 percent for inflation. 109 ## PAGE INTENTIONALLY LEFT BLANK 110 ## COMBINING AND INDIVIDUAL FUND STATEMENTS ## AND SCHEDULES 111 ## PAGE INTENTIONALLY LEFT BLANK 112 ## Special ## RevenueDebt ServiceCapital ProjectTotals ## Assets Cash and temporary investment s4,267,609$ 587,148$ 6,649,776$ 11,504,533$ ## Receivables Unremitted taxes 1,033 35,775 – 36,808 Delinquent taxes 860 30,855 – 31,715 Unremitted special assessments– 701 620 1,321 Delinquent special assessments– 395 2,242 2,637 Deferred special assessments– 58,959 60,973 119,932 Accounts12,633 – – 12,633 Notes131,523 – – 131,523 Due from other governmental units61,114 – – 61,114 Due from other funds25,000 – – 25,000 Advances to other funds– – 1,454,009 1,454,009 Prepaids2,993 – – 2,993 Total assets4,502,765$ 713,833$ 8,167,620$ 13,384,218$ ## Liabilities Accounts and contracts payable7,525$ 871$ 5,356$ 13,752$ Due to other governmental units58,371 – – 58,371 Advances from other funds– – 137,761 137,761 Total liabilities65,896 871 143,117 209,884 Deferred inflows of resources Unavailable revenue - property taxes860 30,855 – 31,715 Unavailable revenue - special assessments– 59,354 63,215 122,569 Unavailable revenue - notes 131,523 – – 131,523 Total deferred inflows of resources132,383 90,209 63,215 285,807 Fund balances Nonspendable2,993 – – 2,993 Restricted2,410,097 622,753 – 3,032,850 Committed1,891,396 – – 1,891,396 Assigned– – 7,961,288 7,961,288 Total fund balance4,304,486 622,753 7,961,288 12,888,527 Total liabilities, deferred inflows of resources, and fund balances 4,502,765$ 713,833$ 8,167,620$ 13,384,218$ December 31, 2025 ## CITY OF RAMSEY ## Nonmajor Governmental Funds ## Combining Balance Sheet 113 ## PAGE INTENTIONALLY LEFT BLANK 114 ## Special ## RevenueDebt ServiceCapital ProjectTotals ## Revenue Property taxes 84,509$ 2,925,043$ 44,520$ 3,054,072$ Special assessments– 53,336 11,487 64,823 Intergovernmental revenue419,894 338,510 – 758,404 Contributions221,077 – – 221,077 Other revenue Investment earnings 160,736 60,026 272,384 493,146 Miscellaneous457,654 129 178,460 636,243 Total revenue1,343,870 3,377,044 506,851 5,227,765 ## Expenditures ## Current General government104,681 – 191,781 296,462 Public safety101,233 – – 101,233 Highways and streets – – 696,054 696,054 Economic development195,236 – – 195,236 Capital outlay325,335 – 11,852 337,187 Debt service Principal retirement– 2,640,000 – 2,640,000 Interest – 993,198 3,594 996,792 Total expenditures726,485 3,633,198 903,281 5,262,964 Excess (deficiency) of revenue over expenditures617,385 (256,154) (396,430) (35,199) Other financing sources (uses) Proceeds on sale of capital assets41,075 – – 41,075 Transfers in 78,167 385,369 1,272,944 1,736,480 Transfers (out)(53,408) (385,369) (800,200) (1,238,977) Total other financing sources (uses)65,834 – 472,744 538,578 Net change in fund balances683,219 (256,154) 76,314 503,379 Fund balances Beginning of year, as previously reported2,564,559 878,907 7,884,974 11,328,440 Change within financial reporting entity1,056,708 – – 1,056,708 Beginning of year, as adjusted3,621,267 878,907 7,884,974 12,385,148 End of yea r4,304,486$ 622,753$ 7,961,288$ 12,888,527$ ## CITY OF RAMSEY ## Nonmajor Governmental Funds ## Combining Statement of Revenue, Expenditures, and Changes in Fund Balances ## Year Ended December 31, 2025 115 ## PAGE INTENTIONALLY LEFT BLANK 116 General Govt Special Projects Fund–usedtoaccount for resources accumulated and expenditures relatedto special General Government projects. Economic Development Authority Fund–usedtoaccount for revenues and expenditures associated with economic development activities within the City. ## NONMAJOR SPECIAL REVENUE FUNDS Nonmajor Special Revenue Funds are usedtoaccount for revenue derived from specific revenue sources that are legally restricted or committed to expenditures for specific purposes. Revolving Loan Fund–usedtoaccount for loans authorized by the Citytoprospective private businessesin accordance with Chapter 469 of the Minnesota Statutes. Lawful Gambling Fund–usedtoaccount for lawful gambling revenues received by the Cityasauthorized by Minnesota State Statutes Chapter 349. Peace Officers Fund–usedtoaccount for post-board reimbursement and other restricted revenues which must be used exclusively for in-service training and other expenditures as specified. State Relief Fund–usedtoaccount for the funds received from the State of Minnesota knownasLocal Affordable Housing Aid to be used on qualifying projects. Developer’sFees Fund–usedtoaccount for demand fees that will be used for storm water management. This fund was a major government fund in 2024. Lodging Tax Fund–usedtoaccount for lodging tax revenues received by the City that shall be usedin accordance with Minnesota Statutes 469.190. 117 ## Formerly ## Major ## RevolvingLawfulPeaceDeveloper’s ## LoanGamblingOfficersFees ## Assets Cash and temporary investments269,137$ 153,845$ 34,891$ 1,544,495$ ## Receivables Unremitted taxes– – – – Delinquent taxes– – – – Accounts– 12,321 – – Notes131,523 – – – Due from other governmental units– – 61,114 – Due from other funds– – – – Prepaids– – – – Total assets400,660$ 166,166$ 96,005$ 1,544,495$ ## Liabilities Accounts and contracts payable–$ –$ 7,185$ –$ Due to other governmental units– – 52,532 – Total liabilities– – 59,717 – Deferred inflows of resources Unavailable revenue - property taxes– – – – Unavailable revenue - notes 131,523 – – – Total deferred inflows of resources131,523 – – – Fund balances Nonspendable– – – – Restricted– 166,166 36,288 – Committed269,137 – – 1,544,495 Total fund balances269,137 166,166 36,288 1,544,495 Total liabilities, deferred inflows of resources, and fund balances 400,660$ 166,166$ 96,005$ 1,544,495$ ## CITY OF RAMSEY ## Nonmajor Special Revenue Funds ## Combining Balance Sheet December 31, 2025 118 ## General GovtEconomic ## StateSpecialLodging Development ## ReliefProjectsTaxAuthorityTotals 447,102$ 77,764$ 8,348$ 1,732,027$ 4,267,609$ – – – 1,033 1,033 – – – 860 860 – – 312 – 12,633 – – – – 131,523 – – – – 61,114 – – – 25,000 25,000 – – – 2,993 2,993 447,102$ 77,764$ 8,660$ 1,761,913$ 4,502,765$ –$ –$ –$ 340$ 7,525$ – – 5,839 – 58,371 – – 5,839 340 65,896 – – – 860 860 – – – – 131,523 – – – 860 132,383 – – – 2,993 2,993 447,102 – 2,821 1,757,720 2,410,097 – 77,764 – – 1,891,396 447,102 77,764 2,821 1,760,713 4,304,486 447,102$ 77,764$ 8,660$ 1,761,913$ 4,502,765$ 119 ## Formerly ## Major ## RevolvingLawfulPeaceDeveloper’s ## LoanGamblingOfficersFees ## Revenue Property taxes–$ –$ –$ –$ Intergovernmental revenue– – 101,114 – Contributions– – – 221,077 Other revenue Investment earnings 11,143 10,397 1,141 56,227 Miscellaneous23,838 105,840 12,201 156,675 Total revenue34,981 116,237 114,456 433,979 ## Expenditures ## Current General government– 24,435 – – Public safety– – 101,233 – Economic development149,999 – – – Capital outlay– 300,976 – 24,359 Total expenditures149,999 325,411 101,233 24,359 Excess (deficiency) of revenue over expenditures(115,018) (209,174) 13,223 409,620 Other financing sources (uses) Proceeds on sale of capital assets– – – – Transfers in– – – 78,167 Transfers (out)– – – – Total other financing sources (uses)– – – 78,167 Net change in fund balances (115,018) (209,174) 13,223 487,787 Fund balances Beginning of year, as previously reported384,155 375,340 23,065 – Change within financial reporting entity– – – 1,056,708 Beginning of year, as adjusted384,155 375,340 23,065 1,056,708 End of year269,137$ 166,166$ 36,288$ 1,544,495$ ## CITY OF RAMSEY ## Nonmajor Special Revenue Funds ## Combining Statement of Revenue, Expenditures, and Changes in Fund Balances ## Year Ended December 31, 2025 120 ## General GovtEconomic ## StateSpecialLodgingDevelopment ## ReliefProjectsTaxAuthorityTotals –$ –$ –$ 84,509$ 84,509$ 318,780 – – – 419,894 – – – – 221,077 9,425 4,353 165 67,885 160,736 – 68,668 7,656 82,776 457,654 328,205 73,021 7,821 235,170 1,343,870 – 80,246 – – 104,681 – – – – 101,233 – – 5,000 40,237 195,236 – – – – 325,335 – 80,246 5,000 40,237 726,485 328,205 (7,225) 2,821 194,933 617,385 – 41,075 – – 41,075 – – – – 78,167 (23,408) (30,000) – – (53,408) (23,408) 11,075 – – 65,834 304,797 3,850 2,821 194,933 683,219 142,305 73,914 – 1,565,780 2,564,559 – – – – 1,056,708 142,305 73,914 – 1,565,780 3,621,267 447,102$ 77,764$ 2,821$ 1,760,713$ 4,304,486$ 121 ## PAGE INTENTIONALLY LEFT BLANK 122 Original andOver (Under) ## Final BudgetActualFinal Budget ## Revenue Property taxes86,367$ 84,509$ (1,858)$ Other revenue Investment earnings 5,000 67,885 62,885 Miscellaneous– 82,776 82,776 Total revenue91,367 235,170 143,803 ## Expenditures ## Current Economic development91,367 40,237 (51,130) Capital outlay– – – Net change in fund balances–$ 194,933 194,933$ Fund balances Beginning of year1,565,780 End of year1,760,713$ ## CITY OF RAMSEY ## Schedule of Revenue, Expenditures, and Changes in Fund Balances ## Economic Development Authority – Budget and Actual ## Year Ended December 31, 2025 123 ## PAGE INTENTIONALLY LEFT BLANK 124 2023A Capital Equipment Certificates–The Series 2023A $1,400,000 General Obligation Capital Equipment Certificate of Indebtedness is to finance the acquisition of capital equipment. ## 2022AGOStreet Reconstruction Bond–The $10,765,000 General Obligation Street Reconstruction Bondsis tofinance the reconstruction of several streetsasoutlinedinthe City's Capital Improvement Plan for years 2023 through 2025. 2021A/2012AGORefund Improvement Bond–The $9,845,000 General Obligation Capital Improvement Bond were issuedtorefund the 2012A General Obligation Capital Improvement Bond that had refunded the 2005A Public Project Lease Revenue Bond that was issuedtofinance the construction of the city's Municipal Center. ## 2020AGOCapital Improvement Bond–The $9,055,000 General Obligation Capital Improvement Bondis to finance the construction of the city's Public Works Campus. ## NONMAJOR DEBT SERVICE FUNDS Nonmajor Debt Service Funds are usedtoaccount for the accumulation of resources used for the payment of principal and interest on long term debt. ## 2015AGOCapital Improvement Bond–The $3,880,000 General Obligation Capital Improvement Bondis to finance the construction of the city's Fire Station #2. ## 2018AGOStreet Reconstruction Bond–The $1,175,000 General Obligation Street Reconstruction Bondis to finance the reconstruction of Riversbend Avenue and Stanhope Terrace. ## 2015BGOStreet Reconstruction Bond–The $1,205,000 General Obligation Street Reconstruction Bondsis to finance the reconstruction of Garnet Street and 168th Avenue. ## 2017AGOStreet Reconstruction Bond–The $895,000 General Obligation Street Reconstruction Bondsis to finance the reconstruction of Alpine Drive and Sunwood Drive. 2014A Capital Equipment Certificates–The Series 2014A $875,000 General Obligation Capital Equipment Certificate of Indebtedness is to finance the acquisition of capital equipment. 2011B RefundGOImprovement Bonds–In2011, $3,090,000 Series 2011B Improvement Crossover Refunding bonds were issuedtorefund the 2005B SeriesAUARroadway bonds that were called on December 15, 2014. ## 2016AGOStreet Reconstruction Bond–The $1,650,000 General Obligation Street Reconstruction Bondsis to finance the reconstruction of Andrie Street and 164th Lane. 2013A Capital Equipment Certificates–The Series 2013A $635,000 General Obligation Capital Equipment Certificate of Indebtedness is to finance the acquisition of capital equipment. 125 ## 2015A2015B2016A ## 2011B Refund2013A2014AGO CapitalGO StreetGO Street ## GO Improvement Capital EquipmentCapital EquipmentImprovementReconstructionReconstruction ## BondsCertificatesCertificatesBondBondBond ## Assets Cash and temporary investments29,726$ –$ 2,182$ 133,071$ 4,779$ 83,617$ ## Receivables Unremitted taxes– – – 2,528 1,017 1,306 Delinquent taxes– – – 2,899 1,179 1,518 Unremitted special assessments– – – – 3 698 Delinquent special assessments– – – – 395 – Deferred special assessments– – – – – 21,426 Total assets29,726$ –$ 2,182$ 138,498$ 7,373$ 108,565$ ## Liabilities Accounts and contracts payable–$ –$ –$ –$ –$ –$ Deferred inflows of resources Unavailable revenue - property taxes– – – 2,899 1,179 1,518 Unavailable revenue - special assessments– – – – 395 21,426 Total deferred inflows of resources– – – 2,899 1,574 22,944 Fund balances Restricted29,726 – 2,182 135,599 5,799 85,621 Total liabilities, deferred inflows of resources and fund balances29,726$ –$ 2,182$ 138,498$ 7,373$ 108,565$ ## CITY OF RAMSEY ## Nonmajor Debt Service Funds ## Combining Balance Sheet December 31, 2025 126 ## 2017A2018A2020A2021A/2012A2022A ## GO StreetGO StreetGO CapitalGO RefundGO Street2023A ## ReconstructionReconstructionImprovementImprovementReconstructionCapital Equipment ## BondBondBondBondBondCertificatesTotals 6,628$ 25,906$ 60,578$ 58,392$ 128,342$ 53,927$ 587,148$ 820 1,015 1,135 16,592 9,692 1,670 35,775 951 1,159 1,308 9,618 10,539 1,684 30,855 – – – – – – 701 – – – – – – 395 9,139 28,394 – – – – 58,959 17,538$ 56,474$ 63,021$ 84,602$ 148,573$ 57,281$ 713,833$ –$ 91$ –$ –$ –$ 780$ 871$ 951 1,159 1,308 9,618 10,539 1,684 30,855 9,139 28,394 – – – – 59,354 10,090 29,553 1,308 9,618 10,539 1,684 90,209 7,448 26,830 61,713 74,984 138,034 54,817 622,753 17,538$ 56,474$ 63,021$ 84,602$ 148,573$ 57,281$ 713,833$ 127 ## 2015A2015B2016A ## 2011B Refund2013A2014AGO CapitalGO StreetGO Street ## GO ImprovementCapital EquipmentCapital EquipmentImprovementReconstructionReconstruction ## BondsCertificatesCertificatesBondBondBond ## Revenue Property taxes–$ –$ –$ 276,787$ 111,333$ 142,927$ Special assessments– – – – 8,667 24,411 Intergovernmental revenue338,510 – – – – – Other revenue Investment earnings 23,358 – 1,761 6,009 1,359 5,055 Miscellaneous– – – – 20 Total revenue361,868 – 1,761 282,796 121,359 172,413 ## Expenditures Debt service Principal retirement310,000 – – 195,000 130,000 170,000 Interest 8,836 – – 81,178 8,391 7,841 Total expenditures318,836 – – 276,178 138,391 177,841 Excess (deficiency) of revenue over expenditures43,032 – 1,761 6,618 (17,032) (5,428) Other financing sources (uses) Transfers in– – – – – – Transfers out(340,000) (369) (45,000) – – – Total other financing sources (uses)(340,000) (369) (45,000) – – – Net change in fund balances (296,968) (369) (43,239) 6,618 (17,032) (5,428) Fund balances Beginning of year326,694 369 45,421 128,981 22,831 91,049 End of year29,726$ –$ 2,182$ 135,599$ 5,799$ 85,621$ ## Nonmajor Debt Service Funds ## Combining Statement of Revenue, Expenditures, and Changes in Fund Balances ## Year Ended December 31, 2025 ## CITY OF RAMSEY 128 ## 2017A2018A2020A2021A/2012A2022A ## GO StreetGO StreetGO CapitalGO RefundGO Street2023A ## ReconstructionReconstructionImprovementImprovementReconstructionCapital Equipment ## BondBondBondBondBondCertificatesTotals 89,725$ 111,098$ 124,230$ 822,875$ 1,062,291$ 183,777$ 2,925,043$ 5,200 15,058 – – – – 53,336 – – – – – – 338,510 1,044 2,445 769 8,336 8,600 1,290 60,026 109 – – – – 129 96,078 128,601 124,999 831,211 1,070,891 185,067 3,377,044 90,000 125,000 – 955,000 550,000 115,000 2,640,000 7,401 16,032 122,156 186,591 488,691 66,081 993,198 97,401 141,032 122,156 1,141,591 1,038,691 181,081 3,633,198 (1,323) (12,431) 2,843 (310,380) 32,200 3,986 (256,154) – – 40,000 300,369 – 45,000 385,369 – – – – – – (385,369) – – 40,000 300,369 – 45,000 – (1,323) (12,431) 42,843 (10,011) 32,200 48,986 (256,154) 8,771 39,261 18,870 84,995 105,834 5,831 878,907 7,448$ 26,830$ 61,713$ 74,984$ 138,034$ 54,817$ 622,753$ 129 ## PAGE INTENTIONALLY LEFT BLANK 130 Public Facilities Construction Fund–usedtoaccount for the resourcestobe used for land acquisition and the construction of public utilities. Equipment Revolving Fund–usedtoaccount for resourcestofinance the replacement of city equipment, vehicles, and/or building facilities. ## NONMAJOR CAPITAL PROJECTS FUNDS Public Improvement Revolving Fund–usedtoaccount for the resourcestobe usedtofinance the City's share of the annual street maintenance program. Nonmajor Capital Projects Funds are usedtoaccount for financial resourcestobe used for the acquisition or construction of major capital facilities. Trott Brook Cemetery Perpetual Care Fund–usedtoaccount for perpetual care fees collected on the sale of cemetery plots in Trott Brook Cemetery. Parking Ramp Maintenance Fund–usedtoaccount for all expenditures that the City incurstooperate, maintain, and repair the parking ramp with costs to be allocated to the affected users. 131 ## PublicTrott Brook Parking ## ImprovementCemetery Ramp ## RevolvingPerpetual CareMaintenance ## Assets Cash and temporary investments4,592,271$ 98,770$ 281,520$ ## Receivables Unremitted special assessments620 – – Delinquent special assessments2,242 – – Deferred special assessments60,973 – – Advances to other funds175,000 – – Total assets4,831,106$ 98,770$ 281,520$ ## Liabilities Accounts and contracts payable–$ –$ 5,356$ Due to other governmental units– – – Unearned revenue– – – Advances from other funds– – – Total liabilities– – 5,356 Deferred inflows of resources Unavailable revenue - special assessments63,215 – – Fund balances Assigned4,767,891 98,770 276,164 Total liabilities, deferred inflows of resources, and fund balances 4,831,106$ 98,770$ 281,520$ - - - ## CITY OF RAMSEY ## Nonmajor Capital Project Funds ## Combining Balance Sheet December 31, 2025 132 ## Equipment Public Facilities ## Revolving ConstructionTotals 731,813$ 945,402$ 6,649,776$ – – 620 – – 2,242 – – 60,973 1,279,009 – 1,454,009 2,010,822$ 945,402$ 8,167,620$ –$ –$ 5,356$ – – – – – – – 137,761 137,761 – 137,761 143,117 – – 63,215 2,010,822 807,641 7,961,288 2,010,822$ 945,402$ 8,167,620$ - 133 ## PublicTrott Brook Parking ## ImprovementCemetery Ramp ## RevolvingPerpetual CareMaintenance ## Revenue Property taxes–$ –$ –$ Special assessments11,487 – – Other revenue Investment earnings 177,337 3,881 7,507 Miscellaneous429 5,800 152,231 Total revenue189,253 9,681 159,738 ## Expenditures ## Current General government– – 112,938 Highways and streets 696,054 – – Capital outlay– – – Debt service Interest– – – Total expenditures696,054 – 112,938 Excess (deficiency) of revenue over expenditures(506,801) 9,681 46,800 Other financing sources (uses) Transfers in 695,414 – – Transfers (out)(432,200) – – Total other financing sources263,214 – – Net change in fund balances (243,587) 9,681 46,800 Fund balances Beginning of year5,011,478 89,089 229,364 End of year4,767,891$ 98,770$ 276,164$ ## Combining Statement of Revenue, Expenditures, and Changes in Fund Balances ## Year Ended December 31, 2025 ## CITY OF RAMSEY ## Nonmajor Capital Project Funds 134 ## Equipment Public Facilities ## Revolving ConstructionTotals –$ 44,520$ 44,520$ – – 11,487 49,216 34,443 272,384 20,000 – 178,460 69,216 78,963 506,851 14,525 64,318 191,781 – – 696,054 – 11,852 11,852 – 3,594 3,594 14,525 79,764 903,281 54,691 (801) (396,430) 433,788 143,742 1,272,944 (368,000) – (800,200) 65,788 143,742 472,744 120,479 142,941 76,314 1,890,343 664,700 7,884,974 2,010,822$ 807,641$ 7,961,288$ 135 ## PAGE INTENTIONALLY LEFT BLANK 136 ## STATISTICAL SECTION (UNAUDITED) 137 ## PAGE INTENTIONALLY LEFT BLANK 138 ## STATISTICAL SECTION This part of the City of Ramsey's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. ## ContentsPage ## Financial Trends These schedules contain trend information to help the reader understand140-145 how the government's financial performance and well-being have changed over time. ## Revenue Capacity These schedules contain information to help the reader assess the government's 146-149 most significant local revenue source, the property tax. ## Debt Capacity 150-153 ## Demographic and Economic Information These schedules offer demographic and economic indicators to help the154-155 reader understand the environment within which the government's financial activities take place. ## Operating Information These schedules contain service and infrastructure data to help the reader156-158 understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relative year. These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. 139 2016201720182019202020212022202320242025 Governmental activities Net investment in capital assets$42,170,710 $42,129,791 $43,551,135 $44,658,317 $52,756,077 $57,322,004 $63,796,121 $66,959,661 $72,783,568 $82,689,945 Restricted18,323,930 19,679,434 20,935,216 21,006,537 18,957,706 19,886,753 20,624,484 18,598,778 14,022,396 11,974,763 Unrestricted13,832,461 13,559,175 15,666,889 16,759,261 22,499,652 22,741,842 23,405,779 26,728,758 36,934,626 38,618,625 Total governmental activities net position$74,327,101 $75,368,400 $80,153,240 $82,424,115 $94,213,435 $99,950,599 $107,826,384 $112,287,197 $123,740,590 $133,283,333 Business-type activities Net investment in capital assets$51,959,594 $53,855,285 $53,653,338 $55,575,211 $56,166,921 $57,940,442 $63,486,708 $71,932,644 $95,749,335 $112,202,886 Unrestricted35,953,541 38,306,851 43,024,292 46,993,793 44,568,513 48,126,205 43,879,636 44,232,074 32,212,510 26,375,618 Total business-type activities net position$87,913,135 $92,162,136 $96,677,630 $102,569,004 $100,735,434 $106,066,647 $107,366,344 $116,164,718 $127,961,845 $138,578,504 Total government Net investment in capital assets$94,130,304 $95,985,076 $97,204,473 $100,233,528 $108,922,998 $115,262,446 $127,282,829 $138,892,305 $168,532,903 $194,892,831 Restricted18,323,930 19,679,434 20,935,216 21,006,537 18,957,706 19,886,753 20,624,484 18,598,778 14,022,396 11,974,763 Unrestricted49,786,002 51,866,026 58,691,181 63,753,054 67,068,165 70,868,047 67,285,415 70,960,832 69,147,136 64,994,243 Total government net position$162,240,236 $167,530,536 $176,830,870 $184,993,119 $194,948,869 $206,017,246 $215,192,728 $228,451,915 $251,702,435 $271,861,837 ## Net Position by Component ## City of Ramsey ## Fiscal Year (accrual basis of accounting) ## Last Ten Fiscal Years 140 2016201720182019202020212022202320242025 ## Expenses Governmental activities: General government$4,528,920 $4,992,809 $5,078,516 $5,139,352 $5,640,679 $4,568,229 $4,967,112 $5,347,691 $5,645,480 $6,126,045 Public safety5,875,567 5,782,563 5,167,897 5,844,265 6,468,397 6,363,724 7,989,480 8,717,911 8,894,134 9,597,991 Highways and streets3,826,143 4,254,234 4,191,395 4,442,720 4,028,294 4,686,416 5,308,212 8,670,486 7,783,629 9,194,282 Culture and recreation1,931,537 2,384,845 1,751,345 1,756,810 1,917,228 1,834,153 1,997,522 2,194,755 2,430,888 2,682,150 Economic development- - - - 481,858 2,140,267 1,096,422 1,705,446 1,488,674 1,342,690 Interest and fiscal charges890,305 952,965 883,292 845,651 839,444 883,504 564,462 1,258,959 1,317,942 1,134,749 Total governmental activities expenses17,052,472 18,367,416 17,072,445 18,028,798 19,375,900 20,476,293 21,923,210 27,895,248 27,560,747 30,077,907 Business-type activities: Water utility1,489,070 1,396,021 1,590,737 1,483,584 1,657,356 1,772,358 1,895,776 2,062,314 2,243,736 2,360,896 Sewer utility1,438,141 1,535,664 1,523,670 1,631,260 1,723,238 1,742,380 1,947,356 2,209,802 2,411,209 2,539,590 Street light utility176,732 159,378 160,952 171,619 169,463 178,576 172,765 173,924 167,123 216,126 Recycling utility359,418 373,775 380,055 380,192 366,764 507,067 514,231 527,182 549,993 580,435 Storm water utility742,043 633,101 573,878 590,645 777,252 715,349 791,605 864,721 1,022,935 1,198,990 Total business-type activities4,205,404 4,097,939 4,229,292 4,257,300 4,694,073 4,915,730 5,321,733 5,837,943 6,394,996 6,896,037 Total government expenses$21,257,876 $22,465,355 $21,301,737 $22,286,098 $24,069,973 $25,392,023 $27,244,943 $33,733,191 $33,955,743 $36,973,944 ## Program Revenues Governmental activities: Charges for services: General government$457,901 $571,464 $691,819 $640,173 $534,279 $574,117 $676,862 $759,513 $923,139 $929,249 Public safety698,310 878,141 1,168,258 1,098,016 974,955 1,010,111 911,592 1,109,495 1,667,291 1,521,500 Highways and streets261,658 235,020 229,555 214,272 259,161 311,408 315,999 494,732 509,082 502,436 Culture and recreation483,727 585,033 1,355,365 926,530 373,669 1,126,441 13,869 37,474 55,875 42,710 Operating grants and contributions508,694 379,185 368,099 461,826 603,389 774,960 707,228 2,004,445 996,098 1,349,233 Capital grants and contributions3,809,965 5,026,857 4,765,578 3,434,344 4,930,496 5,637,619 9,697,841 5,163,608 9,887,748 9,265,973 Total governmental activities program revenues6,220,255 7,675,700 8,578,674 6,775,161 7,675,949 9,434,656 12,323,391 9,569,267 14,039,233 13,611,101 Business-type activities: Charges for services: Water utility1,953,478 2,772,003 3,484,687 2,138,209 2,541,651 3,057,474 2,962,563 3,574,961 3,168,402 3,610,668 Sewer utility1,458,250 1,784,755 2,182,944 1,672,072 1,714,469 1,805,614 1,876,957 1,994,465 2,425,906 2,560,621 Street light utility196,253 204,418 211,360 217,169 216,545 222,364 230,392 234,607 242,950 257,712 Recycling utility308,052 310,471 317,090 319,940 319,664 440,097 452,107 456,106 468,514 483,595 Storm water utility1,034,552 958,960 1,057,705 1,168,494 1,164,868 1,197,572 1,230,582 1,252,659 1,350,416 1,589,573 Operating grants and contributions67,100 92,602 72,257 67,961 57,865 73,524 57,700 100,369 88,200 70,390 Capital grants and contributions1,799,057 1,864,137 906,190 2,596,210 1,683,338 3,756,359 4,839,693 3,949,772 7,812,542 6,732,029 Total business-type activities program revenues6,816,742 7,987,346 8,232,233 8,180,055 7,698,400 10,553,004 11,649,994 11,562,939 15,556,930 15,304,588 Total government program revenues$13,036,997 $15,663,046 $16,810,907 $14,955,216 $15,374,349 $19,987,660 $23,973,385 $21,132,206 $29,596,163 $28,915,689 Net (expense)/revenue Governmental activities$(10,832,217) $(10,691,716) $(8,493,771) $(11,253,637) $(11,699,951) $(11,041,637) $(9,599,819) $(18,325,981) $(13,521,514) $(16,466,806) Business-type activities2,611,338 3,889,407 4,002,941 3,922,755 3,004,327 5,637,274 6,328,261 5,724,996 9,161,934 8,408,551 Total government net expense$(8,220,879) $(6,802,309) $(4,490,830) $(7,330,882) $(8,695,624) $(5,404,363) $(3,271,558) $(12,600,985) $(4,359,580) $(8,058,255) ## General Revenues and Other Changes in Net Position Governmental activities: Property taxes$10,674,696 $11,136,810 $12,384,300 $12,894,388 $13,744,948 $14,761,012 $17,637,477 $20,126,982 $23,041,341 $23,699,395 Franchise fees- - - - 423,045 2,071,476 4,859 - - - General grants and contributions3,905 3,586 102,994 5,617 2,053,933 2,963 3,644 3,223 3,760 135,308 Investment earnings (charges)280,597 454,089 578,770 1,122,573 1,035,274 (164,122) (286,023) 2,562,165 2,530,184 2,084,759 Gan on sale of capital assets– 5,530 75,047 8,428 2,372 22,325 22,500 20,000 94,090 55,075 Transfers214,445 133,000 137,500 (506,494) 6,229,699 85,147 93,147 74,424 (694,468) 35,012 Total governmental activities11,173,643 11,733,015 13,278,611 13,524,512 23,489,271 16,778,801 17,475,604 22,786,794 24,974,907 26,009,549 Business-type activities: Investment earnings (charges)325,628 492,594 650,053 1,462,125 1,391,802 (220,914) (4,935,417) 3,147,802 1,940,725 2,243,120 Transfers(214,445) (133,000) (137,500) 506,494 (6,229,699) (85,147) (93,147) (74,424) 694,468 (35,012) Total business-type activities111,183 359,594 512,553 1,968,619 (4,837,897) (306,061) (5,028,564) 3,073,378 2,635,193 2,208,108 Total government$11,284,826 $12,092,609 $13,791,164 $15,493,131 $18,651,374 $16,472,740 $12,447,040 $25,860,172 $27,610,100 $28,217,657 ## Change in Net Position Governmental activities$341,426 $1,041,299 $4,784,840 $2,270,875 $11,789,320 $5,737,164 $7,875,785 $4,460,813 $11,453,393 $9,542,743 Business-type activities2,722,521 4,249,001 4,515,494 5,891,374 (1,833,570) 5,331,213 1,299,697 8,798,374 11,797,127 10,616,659 Total government$3,063,947 $5,290,300 $9,300,334 $8,162,249 $9,955,750 $11,068,377 $9,175,482 $13,259,187 $23,250,520 $20,159,402 (accrual basis of accounting) ## Fiscal Year ## Last Ten Fiscal Years ## Changes in Net Position ## City of Ramsey 141 ## Property Tax ## Fiscal Year ## Ad ValoremTax IncrementFranchise FeesTotal 2016 9,974,695$ 700,001$ -$ 10,674,696$ 2017 10,423,864 712,946 - 11,136,810 2018 11,400,536 983,764 - 12,384,300 2019 11,819,552 1,074,836 - 12,894,388 2020 12,515,773 1,229,175 423,045 14,167,993 2021 13,006,098 1,754,914 2,071,476 16,832,488 2022 15,648,606 1,988,871 4,859 17,642,336 2023 18,262,335 1,864,647 - 20,126,982 2024 19,752,163 3,289,178 - 23,041,341 2025 21,504,747 2,194,648 - 23,699,395 Franchise fees were implemented in 2020 with a full year of collections in 2021. The franchise fee was rescinded for year beginning 2022. (accrual basis of accounting) ## Last Ten Fiscal Years ## Governmental Activities Tax Revenues By Source ## City of Ramsey 142 2016201720182019202020212022202320242025 General fund Nonspendable$15,431 $12,393 $21,335 $23,640 $16,849 $36,195 $30,636 $28,616 $13,012 $26,466 Unassigned7,501,962 7,900,225 8,468,792 8,856,806 10,073,204 10,413,294 11,064,416 12,237,299 13,311,361 14,436,283 Total general fund$7,517,393 $7,912,618 $8,490,127 $8,880,446 $10,090,053 $10,449,489 $11,095,052 $12,265,915 $13,324,373 $14,462,749 Nonspendable$450 $920 $1,205 $1,801 $295 $52 $6,274 $4,755 $1,044 $2,993 Restricted18,377,993 18,187,321 19,369,642 19,957,595 27,518,666 17,331,642 30,308,803 29,623,622 14,953,404 11,000,150 Committed1,041,932 1,226,234 1,631,444 1,184,262 1,326,070 1,611,150 1,682,136 1,932,107 1,514,777 1,891,396 Assigned13,331,150 13,394,815 14,094,178 15,297,043 18,886,283 17,358,673 18,344,251 20,878,473 29,749,235 30,327,916 Unassigned(87,659) – – – – – – – – – Total all other governmental funds$32,663,866 $32,809,290 $35,096,469 $36,440,701 $47,731,314 $36,301,517 $50,341,464 $52,438,957 $46,218,460 $43,222,455 (modified accrual basis of accounting) ## Fiscal Year ## Last Ten Fiscal Years ## Fund Balances of Governmental Funds ## City of Ramsey 143 2016201720182019202020212022202320242025 ## Revenues Property taxes$10,684,896 $11,150,611 $12,416,534 $12,872,234 $13,682,348 $14,846,572 $17,632,758 $19,751,514 $23,350,614 $23,677,388 Franchise fees- - - - 423,045 2,071,476 4,859 - - - Special assessments444,235 959,217 559,599 1,025,527 484,810 766,131 104,223 562,227 105,484 81,689 Licenses and permits526,008 732,129 1,031,944 901,222 850,504 917,645 843,010 1,058,097 1,610,437 1,446,884 Intergovernmental revenue1,795,988 2,213,034 2,947,966 1,518,639 5,793,188 1,610,478 6,223,407 5,526,102 3,455,486 3,664,694 Charges for services1,298,085 1,469,703 2,355,969 1,892,517 1,246,378 2,038,120 1,852,610 1,301,177 1,508,990 1,481,591 Contributions- - - - - - - 779,800 2,481,859 781,064 Fines and forfeits66,410 59,701 46,651 49,479 34,735 51,153 45,717 39,681 8,603 53,017 Investment earnings (charges)276,142 447,200 570,243 1,104,969 1,020,655 (161,690) (282,114) 2,542,431 2,509,879 2,065,296 Other773,836 707,675 765,601 1,036,319 842,747 1,064,495 1,490,779 813,340 1,363,671 802,213 Total Revenues15,865,600 17,739,270 20,694,507 20,400,906 24,378,410 23,204,380 27,915,249 32,374,369 36,395,023 34,053,836 ## Expenditures General government3,537,925 4,031,933 4,212,365 4,358,408 4,849,293 3,941,404 4,047,511 4,455,734 4,881,806 5,479,491 Public safety4,234,482 4,727,493 4,788,902 5,360,402 5,967,770 6,415,511 6,829,377 7,412,982 8,160,476 8,865,263 Highways and streets2,199,615 2,542,463 2,390,707 2,528,216 2,068,827 2,164,326 2,497,987 5,552,834 4,054,306 4,787,571 Culture and recreation1,478,090 1,960,624 1,291,816 1,281,153 1,476,727 1,417,251 1,467,113 1,679,826 1,883,848 2,044,948 Economic development- - - - 481,858 2,140,267 1,096,422 1,705,446 1,488,674 1,342,690 Capital outlay2,756,193 1,922,947 3,568,285 1,505,922 7,406,231 16,026,400 6,857,075 13,278,567 15,862,434 9,174,063 Debt service Principal1,735,000 2,085,000 2,100,000 2,280,000 4,045,000 1,930,000 1,915,000 2,495,000 2,940,000 2,980,000 Interest965,474 967,281 923,125 854,188 873,623 851,152 640,244 1,249,179 1,685,140 1,327,526 Total Expenditures16,906,779 18,237,741 19,275,200 18,168,289 27,169,329 34,886,311 25,350,729 37,829,568 40,956,684 36,001,552 Excess (deficiency) of revenues over expenditures(1,041,179) (498,471) 1,419,307 2,232,617 (2,790,919) (11,681,931) 2,564,520 (5,455,199) (4,561,661) (1,947,716) Other financing sources (uses) Debt issued1,650,000 895,000 1,175,000 – 9,055,000 – 10,765,000 8,315,000 – – Refunding debt issued– – – – – 9,845,000 – – – – Payments on refunded debt– – – – – (10,510,000) – – – – Premium on debt issues69,482 5,590 35,246 – 4,068 809,201 1,240,343 314,131 – – Proceeds on sale of capital assets– 5,530 75,047 8,428 2,372 46,443 46,443 20,000 94,090 55,075 Transfers in2,183,931 1,536,025 1,447,137 1,714,327 11,238,331 2,049,840 2,049,840 2,028,162 6,680,170 5,645,763 Transfers (out)(1,418,350) (1,403,025) (1,287,049) (2,220,821) (5,008,632) (1,628,914) (1,628,914) (1,953,738) (7,374,638) (5,610,751) Total other financing sources (uses)2,485,063 1,039,120 1,445,381 (498,066) 15,291,139 611,570 12,472,712 8,723,555 (600,378) 90,087 Net change in fund balances$1,443,884 $540,649 $2,864,688 $1,734,551 $12,500,220 $(11,070,361) $15,037,232 $3,268,356 $(5,162,039) $(1,857,629) Debt service as a percentage of noncapital expenditures19.08%18.71%19.25%18.81%24.89%14.75%13.82%15.25%18.43%16.06% (modified accrual basis of accounting) ## Last Ten Fiscal Years ## Changes in Fund Balances of Governmental Funds ## City of Ramsey ## Fiscal Year 144 ## Property TaxFranchise ## Fiscal Year ## Ad ValoremTax Increment ## FeesTotal 20169,984,895$ 700,001$ -$ 10,684,896$ 201710,437,665 712,946 - 11,150,611 201811,432,770 983,764 - 12,416,534 201911,797,398 1,074,836 - 12,872,234 202012,453,173 1,229,175 423,045 14,105,393 202113,091,658 1,754,914 2,071,476 16,918,048 202215,643,887 1,988,871 4,859 17,637,617 202317,886,867 1,864,647 - 19,751,514 202420,061,436 3,289,178 - 23,350,614 202521,482,740 2,194,648 - 23,677,388 Franchise fees were implemented in 2020 with a full year of collections in 2021. The franchise fee was rescinded for year beginning 2022. (modified accrual basis of accounting) ## Last Ten Fiscal Years ## General Governmental Tax Revenues By Source ## City of Ramsey 145 ## FiscalTotalTax Capacity ## YearReal PropertyPersonal PropertyTotal TaxableTaxDirectEstimatedValue as a ## EndedResidential CommercialMarketCapacityTaxActualPercentage of ## Dec 31PropertyPropertyOtherValueValueRateValueMarket Value 20141,362,070,464$ 245,491,800$ 17,567,700$ 1,625,129,964$ 19,356,717$ 44.2371,795,975,400$ 1.19% 20161,680,308,461$ 259,553,800$ 20,929,000$ 1,960,791,261$ 22,262,546$ 43.3162,116,664,200$ 1.14% 20171,788,112,555 272,746,700 21,166,600 2,082,025,855 23,635,124 42.4542,236,219,500 1.14% 20182,017,773,356 276,246,500 24,178,500 2,318,198,356 26,075,064 41.7302,460,843,300 1.12% 20192,173,440,579 298,573,500 27,720,100 2,499,734,179 28,214,447 40.3552,645,430,600 1.13% 20202,364,387,414 320,472,500 29,789,700 2,714,649,614 30,594,502 39.5922,856,636,800 1.13% 20212,546,762,283 332,693,800 31,551,800 2,911,007,883 32,823,984 39.2513,043,492,300 1.13% 20222,814,558,929 377,854,900 30,903,900 3,223,317,729 36,435,817 42.2393,345,686,400 1.13% 20233,561,238,647 440,521,400 30,296,000 4,032,056,047 45,290,995 40.4294,124,767,000 1.12% 20243,725,554,018 643,059,500 29,174,400 4,397,787,918 51,107,789 41.4304,498,605,200 1.16% 20253,671,654,312 650,275,400 37,246,900 4,359,176,612 50,609,145 46.2144,528,945,500 1.16% Note: The tax capacity value of property is calculated by applying a statutory formula to the estimated market value of the property. Source: Anoka County records were the source of taxable market value and estimated actual values. ## City of Ramsey Tax Capacity, Market Value, and Estimated Actual Value of Taxable Property ## Last Ten Fiscal Years 146 ## City of RamseyCountySchool DistrictOtherTotal GeneralDebtTotalSpecialDirect &Direct & ## FiscalOperatingServiceCityAnokaISD ISDTaxingOverlappingOverlapping YearLevyLevyLevyCountyNo 11No 728Districts (3)Rates-ISD No 11Rates-ISD No 728 Tax rates per $100 of tax capacity 201437.073 7.164 44.237 44.495 28.265 51.286 6.031 123.028 146.049 201636.185 7.131 43.316 39.398 20.885 39.266 5.448 109.047 127.428 201735.564 6.890 42.454 37.273 18.590 36.659 5.087 103.404 121.473 201834.830 6.900 41.730 35.820 18.392 36.137 4.902 100.844 118.589 201934.483 5.872 40.355 34.908 16.330 32.865 4.619 96.212 112.747 202034.063 5.529 39.592 33.483 16.948 34.371 4.361 94.384 111.807 202133.882 5.369 39.251 31.567 16.152 31.717 4.236 91.206 106.771 202237.131 5.108 42.239 29.605 16.319 30.889 4.063 92.226 106.796 202333.224 7.205 40.429 24.482 13.671 26.605 3.508 82.090 95.024 202434.514 6.916 41.430 25.629 13.592 23.924 3.481 84.132 94.464 202539.905 6.309 46.214 30.245 13.598 25.252 3.590 93.647 105.301 ## Source: Anoka County records (1) Information reflects total tax rates levied by each entity. Tax rates are expressed as a percent of "net tax capacity." A property's tax capacity is determined by multiplying its taxable market value by a state-determined class rate. Class rates vary by property type and change periodically based on state legislation. (2) Overlapping rates are those of local and county governments that apply to property owners within the City of Ramsey. Not all overlapping rates apply to all City of Ramsey property owners (e.g., the rates for special districts may apply only to the proportion of the government's property owners whose property is located within the geographic boundaries of the special district.) (3) Other taxing districts include the Metropolitan Council, Regional Transit Area, Mosquito Control, and the Anoka County Regional Railroad Authority. ## City of Ramsey ## Property Tax Rates (1) ## Direct and Overlapping (2) Governments ## Last Ten Fiscal Years 147 Percentage ofPercentage of ## TaxableTotal TaxableTaxableTotal Taxable ## MarketMarketMarketMarket ## TaxpayerValueRankValueValueRankValue Residence at the COR Apartments43,000,000$ 1 0.99%27,019,400$ 1 1.38% Affinity at Ramsey, LLC32,468,000 2 0.74%– – N/A AMP Ex, LLC24,426,900 3 0.56%– – N/A Minnegaso Inc.23,899,200 4 0.55%6,531,300 8 0.33% Parkview East, LLC22,506,000 5 0.52%– – N/A Sapphire Apartments22,000,000 6 0.50%– – N/A Ramsey Industrial - Oppidan Building 219,247,300 7 0.44%– – N/A Ramsey Industrial - Oppidan Building 119,202,400 8 0.44%– – N/A Life Fitness LLC18,800,000 9 0.43%– – N/A Knoll Properties16,500,000 10 0.38%– – N/A Connexus Energy/Anoka Electric– – N/A15,020,600 2 0.77% ## PSD, LLC– – N/A10,553,600 3 0.54% S & A Partners, LLC– – N/A9,371,200 4 0.48% Sophia-Ramsey LLC– – N/A8,373,900 5 0.40% Brunswick Corporation– – N/A7,966,700 6 0.41% Northstar Marketplace Station– – N/A7,415,900 7 0.38% Vision Ease/Insight Equity APX– – N/A5,724,900 9 0.29% Zero-Zone Refrigeration– – N/A4,385,100 10 0.22% Total principal property taxpayers242,049,800$ 5.54%102,362,600$ 5.20% ## Source: County Board of Equalization and Assessment ## N/A - Not Applicable 20252016 ## Current Year And Nine Years Ago ## Principal Property Taxpayers ## City of Ramsey 148 ## Fiscal YearTotal TaxCollected within the EndedLevy forFiscal Year of the Levy (2)Collections inTotal Collections to Date ## December 31Fiscal YearAmountPercentage of LevySubsequent YearsAmountPercentage of Levy 20169,971,075$ 9,890,058$ 99.19%78,968$ 9,969,026$ 99.98% 201710,479,058 10,409,108 99.33%66,750 10,475,858 99.97% 201811,374,395 11,314,369 99.47%54,109 11,368,478 99.95% 201911,831,335 11,736,217 99.20%79,229 11,815,446 99.87% 202012,509,232 12,405,409 99.17%99,386 12,504,795 99.96% 202113,009,808 12,956,334 99.59%49,258 13,005,592 99.97% 202215,312,856 15,230,344 99.46%63,543 15,293,887 99.88% 202318,235,180 18,042,487 98.94%55,542 18,098,029 99.25% 202420,279,701 20,155,145 99.39%– 20,155,145 99.39% 202521,950,694 21,507,139 97.98%– 21,507,139 97.98% ## Source: Anoka County records (1) Includes general, debt service and EDA levy. (2) Includes property tax credit collections shown in intergovernmental revenue. ## City of Ramsey ## Property Tax Levies and Collections (1) ## Last Ten Fiscal Years 149 ## Governmental Activities ## Fiscal ## Year ## General ## Obligation ## Bonded Debt ## Unamortized ## Bond ## Premiums ## Capital ## Equipment ## Certificates ## Total Primary ## Government ## Percentage of Personal ## Income(1) ## Per ## Capita(1) 201627,120,000$ -$ 1,165,000$ 28,285,000$ 3.28%1,093$ 201726,075,000 - 1,020,000 27,095,000 2.93%1,032 201825,295,000 - 875,000 26,170,000 2.77%989 201923,165,000 - 725,000 23,890,000 2.30%883 202028,325,000 - 575,000 28,900,000 2.75%1,060 202125,885,000 795,714 420,000 27,100,714 2.57%970 202234,895,000 1,951,694 260,000 37,106,694 3.12%1,301 202339,480,000 2,099,612 1,495,000 43,074,612 3.29%1,500 202436,740,000 1,915,176 1,295,000 39,950,176 3.10%1,385 202533,875,000 1,730,740 1,180,000 36,785,740 2.72%1,268 Note: Details regarding the city's outstanding debt can be found in the notes to the basic financial statements. (1) See the Schedule of Demographic and Economic Statistics for personal income and population data. ## Last Ten Fiscal Years ## Ratios of Outstanding Debt by Type ## City of Ramsey 150 Percentage of ## Total ## General UnamortizedCapital Less: AmountsTaxable Market FiscalObligationBondEquipmentAvailable in DebtValue ofPer ## YearBondsPremiumsCertificatesService Fund (3)TotalProperty(1)Capita(2) 201627,120,000$ -$ 1,165,000$ 1,778,495$ 26,506,505$ 1.35%1,025$ 201726,075,000 - 1,020,000 2,380,281 24,714,719 1.19%941 201825,295,000 - 875,000 2,573,517 23,596,483 1.02%892 201923,165,000 - 725,000 2,749,577 21,140,423 0.85%781 202028,325,000 - 575,000 1,422,444 27,477,556 1.01%1,008 202125,885,000 795,714 420,000 977,067 26,123,647 0.90%935 202234,895,000 1,951,694 260,000 713,656 36,393,038 1.13%1,276 202339,480,000 2,099,612 1,495,000 780,840 42,293,772 1.05%1,473 202436,740,000 1,915,176 1,295,000 878,907 39,071,269 0.89%1,354 202533,875,000 1,730,740 1,180,000 622,753 36,162,987 0.83%1,246 Note: Details regarding the city's outstanding debt can be found in the notes to the basic financial statements. (1) See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data. (2) Population data can be found in the Schedule of Demographic and Economic Statistics. (3) The City is using governmental fund balance restricted for debt service. We believe this to be the best amount available to present a consistent net amount when refunding bonds are held for payment, which are not restricted on entity-wide statements due to conversion for full accrual accounting. ## Last Ten Fiscal Years ## Ratios of General Bonded Debt Outstanding ## City of Ramsey 151 ## Estimated EstimatedShare of ## DebtPercentageOverlapping ## Governmental UnitOutstandingApplicable(1)Debt Debt repaid with property taxes: ## Anoka County$53,310,000 7.95%$4,239,733 ## ISD No. 11, Anoka-Hennepin223,625,000 10.63%23,772,355 ## ISD No. 728, Elk River280,715,000 3.17%8,899,473 ## Metropolitan Council202,510,308 0.78%1,574,621 Subtotal, overlapping debt38,486,183 City of Ramsey direct debt36,785,740 100.00%36,785,740 Total direct and overlapping debt$75,271,923 Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the city. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Ramsey. This process recognizes that, when considering the government'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. (1) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the county's taxable assessed value that is within the city's boundaries and dividing it by the county's total taxable assessed value. Sources: Assessed value data used to estimate applicable percentages provided by the County Board of Equali- zation and Assessment. Debt outstanding data provided by the county. As of December 31, 2025 ## Direct and Overlapping Governmental Activities Debt ## City of Ramsey 152 2016201720182019202020212022202320242025 Debt Limit$62,348,919 $65,840,919 $72,493,821 $77,913,726 $81,439,488 $87,330,236 $96,699,532 $120,961,681 $131,933,638 $130,775,298 Total net debt applicable to limit18,316,143 17,454,836 16,444,851 15,298,888 23,195,703 21,803,268 31,697,237 38,256,461 36,085,530 33,847,671 Legal debt margin$44,032,776 $48,386,083 $56,048,970 $62,614,838 $58,243,785 $65,526,968 $65,002,295 $82,705,220 $95,848,108 $96,927,627 Total net debt applicable to limit as a percentage of debt limit29.38%26.51%22.68%19.64%28.48%24.97%32.78%31.63%27.35%25.88% ## Taxable Market value$4,359,176,612 Debt limit (3% of market value)130,775,298 Debt applicable to limit: Total bonded debt and certificates$35,055,000 ## Less: Obligations issued with special assessments(740,000) ## Amounts available in respective Debt Service Funds(467,329) Total deductions(1,207,329) 33,847,671 Legal debt margin$96,927,627 Note: Under state finance law, the City of Ramsey's outstanding general obligation debt should not exceed 3 percent of total taxable market value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. ## Legal Debt Margin Calculation for Fiscal Year 2025 ## Last Ten Fiscal Years ## Legal Debt Margin Information ## City of Ramsey ## Fiscal Year 153 ## Per ## Capita ## FiscalPersonalPersonalSchoolUnemployment YearPopulation (1)Income (2)Income (3)Enrollment (4)Rate (5) 201625,868 863,189,292$ 33,369$ 5,217 3.7% 201726,251 925,584,009 35,259 5,410 3.1% 201826,462 945,222,640 35,720 5,449 3.2% 201927,051 1,037,649,309 38,359 5,464 3.1% 202027,263 1,049,407,396 38,492 5,395 4.6% 202127,946 1,178,426,928 42,168 5,346 2.4% 202228,520 1,264,862,000 44,350 6,160 2.6% 202328,712 1,308,434,552 45,571 6,027 2.2% 202428,850 1,290,172,000 44,720 6,892 3.0% 202529,012 1,352,597,464 46,622 6,749 4.3% (2) Calcul ated bas ed on P er Capita Personal Income (Anoka County average) times Ramsey population. (3) U.S. Department of Commerce, Bureau of Economic Analysis - Anoka County Average. (5) Minnesota Department of Employment and Economic Development. (1) Calculated based on census data and City of Ramsey community development estimates. (4) Source: US Census Bureau. Anoka-Hennepin School District #11 and Elk River School District #728. Only includes schools located in Ramsey City limits. ## Last Ten Fiscal Years ## Demographic and Economic Statistics ## City of Ramsey 154 2025 ## EmployerRank ## Rank ## Life Fitness/Parabody Inc.363 1 4.82%460 1 7.48% ## BMC/Hoya Vision Ease/Care301 2 4.00%300 2 4.88% ISD No. 11 (located in Ramsey)275 3 3.65%126 7 2.05% ## Anderson & Dahlen (Knoll Properties)269 4 3.57%150 5 2.44% ## Pact Charter School233 5 ## 3.09%– – N/A ## Showdown Displays228 6 3.03%252 3 4.10% ## Connexus Energy/Anoka Electric218 7 2.89%250 4 4.07% ## Green Valley Greenhouse208 8 ## 2.76%– – N/A ## Zero Zone Refrigeration207 9 ## 2.75%– – N/A ## Delta ModTech205 10 ## 2.72%– – N/A Coborns– – N/A130 6 2.11% Ham Lake Haulers– – N/A104 8 1.69% RJM Distributing– – N/A100 9 1.63% City of Ramsey– – N/A86 10 1.40% Total2,507 33.28%1,958 31.85% ## * Source: City Inquiries with Businesses / Full-time Equivalent ## ** Source 2025 Q4: DEED Employment; Workforce 7,534 ## N/A - Not Applicable ## Current Year And Nine Years Ago ## Principal Employers ## City of Ramsey 2016 ## Employees*Employees* Percentage of ## Total City ## Employment** Percentage of ## Total City ## Employment 155 ## Function2016201720182019*202020212022202320242025 General government17.36 18.36 18.86 18.92 19.10 19.20 21.70 22.50 24.60 26.70 Public safety ## Police Officers24.00 26.26 26.26 27.00 27.00 29.00 29.00 30.00 30.00 30.00 Civilians4.00 3.50 3.50 4.74 4.84 5.52 6.13 6.13 6.13 6.63 ## Fire Firefighters and officers9.58 9.58 9.58 10.58 10.58 10.58 11.58 11.58 14.00 15.00 Civilians1.00 0.70 0.70 0.70 0.70 0.70 - - - - Protective Inspections3.75 3.75 3.25 2.81 2.81 3.82 4.85 4.85 5.20 5.50 Highways and streets Engineering7.00 7.00 6.00 6.00 6.00 6.00 6.00 7.00 8.00 8.00 Streets8.50 8.50 10.50 10.00 9.00 9.00 9.00 11.00 11.00 11.00 Maintenance5.00 5.00 5.00 3.13 3.13 3.50 3.50 3.63 3.00 3.00 Culture and recreation3.97 3.97 3.97 8.50 8.50 9.50 9.50 11.00 12.00 12.00 Water4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 Total88.16 90.62 91.62 96.38 95.66 100.82 105.26 112.69 118.93 122.83 ## Source: City Budget documents * Beginning with 2019 reporting, several positions have moved between departments. ## Last Ten Fiscal Years ## Full-time Equivalent City Government Employees by Function ## City of Ramsey ## Fiscal Year 156 ## Function2016201720182019202020212022202320242025 ## Police* Number of arrests273255289331292331214269274318 ## Motor Vehicle Accidents289162466423335403468384387417 Traffic violations4,8552,9971,8121,2781,0941,2349549681,4811,513 ## Fire Number of calls answered4986988219751,1331,3011,3811,7352,0162,284 ## Inspections**1341581945082094144464486041,126 Highways and streets Street resurfacing (miles)19.8413.4115.4516.272.527.35.98.4611.369.35 Culture and recreation ## Park Acreage maintained571571571572572572572580589605 Trails/sidewalks maintained (miles)***5055559797100100119120120 ## Water Number of connections4,5104,6114,7774,8845,0385,2105,3705,5195,6505,954 Water main breaks1000000030 Average daily consumption (gallons)1,645,0271,923,2131,948,1611,755,5752,004,0242,402,7422,236,5452,483,0542,013,4052,261,400 ## Source: Various City departments * In 2019 the trails were mapped with GIS and provided a more accurateBeginning in 2018 new calculations and tracking processes were used for the Police statistics and are not able to be accurately used as comparisons to prior years. ** Beginning in 2019, inspections include all inspections done by Fire Department, including construction and building inspections. *** In 2019 the trails were mapped with GIS and provided a more accurate number. This basis will be used going forward. ## City of Ramsey ## Operating Indicators by Function ## Last Ten Fiscal Years ## Fiscal Year 157 ## Function2016201720182019202020212022202320242025 ## Public Safety ## Police: Stations1 1 1 1 1 1 1 1 1 1 Patrol units10 10 10 11 11 11 12 12 12 13 Fire stations2 2 2 2 2 2 2 2 2 2 Highways and streets Streets (miles) *183.27 184.70 186.01 186.59 187.80 188.55 189.85 190.27 190.47 192.16 Streetlights1,179 1,194 1,213 1,226 1,243 1,255 1,272 1,351 1,364 1,369 Culture and recreation Parks acreage585 585 585 586 586 586 586 587 603 619 Parks **38 38 38 39 39 39 39 39 40 41 Tennis/pickleball courts ***10 10 10 10 10 14 14 14 14 14 ## Water Water mains (miles)91 94 97 98 99 100 101 107 112 114 Fire hydrants1,047 1,079 1,100 1,150 1,160 1,194 1,239 1,260 1,300 1,315 Maximum daily capacity ****5,112,000 5,112,000 5,112,000 5,112,000 5,112,000 5,112,000 5,112,000 5,112,000 5,112,000 4,356,000 ## Sewer Sanitary sewers (miles)65 67 69 72 73 75 75 78 81 83 Storm sewers (miles)43 46 47 54 55 62 64 65 66 67 ## Source: Various City departments * Street (miles) were previously reported including unbuilt MSA segment roads. Beginning in 2019 they will be excluded. 2019 MSA roads = 4.81 miles ** The city has 40 total parks with 33 receiving some form of maintenance *** In 2021 pickleball courts were added. **** Maximum water city is able to produce in 12 hour period. Well #1 taken off-line in 2025. ## City of Ramsey ## Capital Asset Statistics by Function ## Last Ten Fiscal Years ## Fiscal Year 158 ## Management Report for ## City of Ramsey, Minnesota December 31, 2025 ## THIS PAGE INTENTIONALLY LEFT BLANK ## To the City Council and Management ## City of Ramsey, Minnesota We have prepared this management report in conjunction with our audit of the City of Ramsey, Minnesota’s (the City) financial statements for the year ended December 31, 2025. We have organized this report into the following sections: •Audit Summary ## •Governmental Funds Overview ## •General Fund Overview ## •Enterprise Funds Overview ## •Government-Wide Financial Statements •Accounting and Auditing Updates We would be pleased to further discuss any of the information contained in this report or any other concerns that you would like us to address. We would also like to express our thanks for the courtesy and assistance extended to us during the course of our audit. The purpose of this report is solely to provide those charged with governance of the City, management, and those who have responsibility for oversight of the financial reporting process comments resulting from our audit process and information relevant to city finances in Minnesota. Accordingly, this report is not suitable for any other purpose. Respectfully submitted, ## LB CARLSON, LLP ## Minneapolis, Minnesota June 1, 2026 ## THIS PAGE INTENTIONALLY LEFT BLANK -1- ## AUDIT SUMMARY The following is a summary of our audit work, key conclusions, and other information that we consider important or that is required to be communicated to the City Council, administration, or those charged with governance of the City. ## OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED ## STATES OF AMERICA AND GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended December 31, 2025. Professional standards require that we provide you with information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to you verbally and in our audit engagement letter. Professional standards also require that we communicate the following information related to our audit. ## PLANNED SCOPE AND TIMING OF THE AUDIT We performed the audit according to the planned scope and timing previously discussed and coordinated in order to obtain sufficient audit evidence and complete an effective audit. ## AUDIT OPINIONS AND FINDINGS Based on our audit of the City’s financial statements for the year ended December 31, 2025: •We have issued unmodified opinions on the City’s basic financial statements. •We reported no deficiencies in the City’s internal control over financial reporting that we consider to be material weaknesses. •The results of our testing disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. •We reported no findings based on our testing of the City’s compliance with Minnesota laws and regulations. ## OTHER OBSERVATIONS AND RECOMMENDATIONS ## Land Held for Resale The City currently holds a material amount of land for resale, which management reports at the lower of cost or acquisition value. City staff has also prepared a schedule comparing the current carrying value of these properties to estimated fair values provided by Anoka County to support these values. We recognize the City is working on an ongoing basis to utilize these assets in the best interest of the City. We recommend that the City continue to review these property values on an ongoing basis to ensure proper reporting of city assets and that financial activity between funds is accurately presented. -2- ## OTHER OBSERVATIONS AND RECOMMENDATIONS ## Internal Controls Over Vendors A relatively common method of attempting to defraud local governments involves inducing them to pay claims from fictitious vendors for goods or services that were never provided. Strong safeguards over adding new vendors or making changes to existing vendors within the government’s accounts payable system is an important control to mitigate this risk. Some considerations in this area include: •Limiting the number of employees with access to add or alter vendor records within the accounts payable system, •Requiring vendor additions or changes to be reviewed and approved by supervisory personnel, preferably one not directly involved in processing accounts payable, •Verifying the legitimacy of vendors by obtaining a W-9 or other means, •Verifying any changes to vendor address or banking information prior to processing payments, and •Periodically reviewing the vendor listing to remove inactive vendors from the system. ## Uniform Guidance Revisions Although the City did not earn enough federal funding to require a Single Audit of its expenditures of federal awards this year, if the City receives any federal funding it is obligated to maintain a comprehensive system of internal controls over federal grant compliance that is up to date with current requirements. The U.S. Office of Management and Budget issued a revision to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) in 2024, aiming to streamline grant management and reduce grantor agency and recipient burden. The revised guidance is effective for new federal grant entitlements awarded on or after October 1, 2024. The revision includes a number of significant changes to the federal Single Audit process, including: an increase in dollar threshold for requiring a Single Audit from $750,000 to $1,000,000; changes to the thresholds and process used for determining major programs; an increase in the threshold for the disposition of equipment and remitting unused supplies from $5,000 to $10,000; and an increase in the federal de minimis indirect cost rate from 10 percent to 15 percent. Key changes to written policy requirements for recipients include: enhancement of cybersecurity controls, inclusion of veteran-owned businesses to the group of entities for procurement preference, and a broadened scope for reporting of mandatory disclosures. We recommend the City review its internal control policies to ensure compliance with current guidance. ## SIGNIFICANT ACCOUNTING POLICIES 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 of the notes to basic financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year. 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. -3- ## ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS 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 were: •Value of Land Held for Resale – Management’s estimates of these assets are based on net realizable value (lower of cost or acquisition value). •Depreciation – Management’s estimates of depreciation expense are based on the estimated useful lives of the assets. •Compensated Absences – Management’s estimate is based on current rates of pay, unused compensated absence balances, and the likelihood that unused balances will used over the course of employment or ultimately paid out at termination. •Total Other Post-Employment Benefits (OPEB) and Net Pension Liabilities – The City has recorded liabilities and activity for OPEB and pension benefits. These obligations are calculated using actuarial methodologies described in Governmental Accounting Standards Board Statement Nos. 68 and 75. These actuarial calculations include significant assumptions, including projected changes, healthcare insurance costs, investment returns, retirement ages, proportionate share, and employee turnover. We evaluated the key factors and assumptions used by management to develop these accounting estimates in determining that they are reasonable in relation to the basic financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The disclosures included in the notes to the basic financial statements related to OPEB and pension benefits are particularly sensitive, due to the materiality of the liabilities, and the large and complex estimates involved in determining the disclosures. The financial statement disclosures are neutral, consistent, and clear. ## DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT We encountered no significant difficulties in dealing with management in performing and completing our audit. ## CORRECTED AND UNCORRECTED MISSTATEMENTS 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. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. ## DISAGREEMENTS WITH MANAGEMENT For purposes of this report, 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. -4- ## MANAGEMENT REPRESENTATIONS We have requested certain representations from management that are included in the management representation letter dated June 1, 2026. ## 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 We applied certain limited procedures to the management’s discussion and analysis and the required supplementary information (RSI) that supplement 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 the RSI. We were engaged to report on the combining and individual fund statements and schedules, reported as supplementary information, as described in the table of contents, 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 and the statistical 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. -5- ## GOVERNMENTAL FUNDS OVERVIEW This section of the report provides you with an overview of the financial trends and activities of the City’s governmental funds, which includes the General, special revenue, debt service, and capital project funds. These funds are used to account for the basic services the City provides to all of its citizens, which are financed primarily with property taxes. The governmental fund information in the City’s financial statements focuses on budgetary compliance and the sufficiency of each governmental fund’s current assets to finance its current liabilities. ## GOVERNMENTAL FUND BALANCES The following table summarizes the changes in the fund balances of the City’s governmental funds during the year ended December 31, 2025, presented both by fund balance classification and by major fund: 20252024 ## Change Fund balances of governmental funds Total by classification ## Nonspendable 29,459$ 14,056$ 15,403$ ## Restricted 11,000,150 14,953,404 (3,953,254) ## Committed 1,891,396 1,514,777 376,619 ## Assigned 30,327,916 29,749,235 578,681 ## Unassigned 14,436,283 13,311,361 1,124,922 Total governmental funds57,685,204$ 59,542,833$ (1,857,629)$ Total by fund Major funds ## General 14,462,749$ 13,324,373$ 1,138,376$ Special revenue funds ## Tax Increment 2,780,887 3,362,513 (581,626) ## COR Land 6,965,191 8,597,266 (1,632,075) Capital project funds ## RALF Funded Projects 273,915 400,837 (126,922) ## State-Aid Construction 434,487 466,915 (32,428) ## Pavement Management Program 8,813,381 11,918,186 (3,104,805) ## Park Improvement 11,066,067 9,087,595 1,978,472 Nonmajor funds 12,888,527 12,385,148 503,379 Total governmental funds57,685,204$ 59,542,833$ (1,857,629)$ ## Governmental Fund Changes in Fund Balance ## Fund Balance as of December 31, In total, the fund balances of the City’s governmental funds decreased by $1,857,629 during the year ended December 31, 2025. The decrease was largely due to the capital spending for the pavement management program. -6- ## GOVERNMENTAL FUNDS REVENUE The following table presents the City’s governmental funds revenue by source for the last two fiscal years. ## Dollar ## Revenue ## Revenue ## Change Property taxes 23,677,388 $ 69.5 % 23,350,614 $ 64.2 % 326,774 $ 1.4 % Special assessments 81,689 0.2 105,484 0.3 (23,795) (22.6) % Licenses and permits 1,446,884 4.2 1,610,437 4.4 (163,553) (10.2) % ## Intergovernmental 3,664,694 10.8 3,455,486 9.5 209,208 6.1 % Charges for services 1,481,591 4.4 1,508,990 4.1 (27,399) (1.8) % ## Other 3,701,590 10.9 6,364,012 17.5 (2,662,422) (41.8) % Total revenue 34,053,836 $ 100.0 % 36,395,023 $ 100.0 % (2,341,187) $ (6.4) % ## Percent ## Change ## Year-to-Year Change ## Governmental Funds Revenue by Source 2025 ## Percent of Total 2024 ## Percent of Total The City’s governmental fund revenues for 2025 were $34,053,836, a decrease of $2,341,187 (6.4 percent) from the prior year. The decrease was mainly due to a decrease in other revenues of $2,662,422 from the prior year. Other revenues decreased due to fewer developer fees and park dedication fees. -7- ## PROPERTY TAXES Minnesota cities rely heavily on local property taxes to support governmental fund activities. In the 2025 fiscal year, property taxes provided 69.5 percent of the City’s total governmental funds revenue. The City’s taxable market value increased 9.1 percent for taxes payable in 2024 and decreased 0.9 percent for taxes payable in 2025. The following graph shows the City’s changes in taxable market value over the past 10 years: $ – $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 $3,500,000,000 $4,000,000,000 $4,500,000,000 $5,000,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ## Taxable Market Value Tax capacity is considered the actual base available for taxation. It is calculated by applying the state’s property classification system to each property’s market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city’s total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City’s tax capacity increased 12.8 percent and decreased 1.0 percent for taxes payable in 2024 and 2025, respectively. The following graph shows the City’s change in tax capacities over the past 10 years: $– $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2016201720182019202020212022202320242025 ## Local Net Tax Capacity -8- The following graph presents the City’s certified tax levy and resulting tax rates applied to city residents for each of the last five levy years: 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2021 2022 2023 2024 2025 ## Tax Levies and Rates ## Certified Tax Levy ## City Tax Rate The City’s certified levy has continued to grow over the last five years, while the tax rate has also changed due to the shift of the tax base. -9- ## GOVERNMENTAL FUND EXPENDITURES The expenditures of governmental funds will also vary from state-wide averages and from year-to-year, based on the City’s circumstances. Expenditures are classified into three types as follows: •Current – These are typically the general operating type expenditures occurring on an annual basis, and are primarily funded by general sources, such as taxes and intergovernmental revenues. •Capital Outlay and Construction – These expenditures do not occur on a consistent basis, more typically fluctuating significantly from year-to-year. Many of these expenditures are project-oriented and are often funded by specific sources that have benefited from the expenditure, such as special assessment improvement projects. •Debt Service – Although the expenditures for debt service may be relatively consistent over the term of the respective debt, the funding source is the important factor. Some debt may be repaid through specific sources, such as special assessments or redevelopment funding, while other debt may be repaid with general property taxes. The following table presents the City’s governmental funds expenditures by type for the last two fiscal years: ## Dollar ## Expenditures ## Expenditures ## Change ## Current General government 5,479,491 $ 15.2 % 4,881,806 $ 11.9 % 597,685 $ 12.2 % Public safety 8,865,263 24.6 8,160,476 19.9 704,787 8.6 % Streets and highways 4,787,571 13.3 4,054,306 9.9 733,265 18.1 % Culture and recreation 2,044,948 5.7 1,883,848 4.6 161,100 8.6 % All other 1,342,690 3.7 1,488,674 3.6 (145,984) (9.8) % Total current 22,519,963 62.5 20,469,110 49.9 2,050,853 10.0 % Capital outlay 9,174,063 25.5 15,862,434 38.8 (6,688,371) (42.2) % Debt service 4,307,526 12.0 4,625,140 11.3 (317,614) (6.9) % Total expenditures 36,001,552 $ 100.0 % 40,956,684 $ 100.0 % (4,955,132) $ (12.1) % ## Governmental Funds Expenditures by Type of Total of Total ## Change 2025 2024 ## Year-to-Year Change ## Percent ## Percent ## Percent Total expenditures in the City’s governmental funds for 2025 were $36,001,552, a decrease of $4,955,132 (12.1 percent) from the prior year. Natural inflationary increases in most current spending areas were more than offset by the reduction in capital outlay spending in comparison to the prior year. Capital spending was down in the current year for street reconstruction projects, equipment purchases, and improvements completed in the City’s Center of Ramsey (COR) development. ## THIS PAGE INTENTIONALLY LEFT BLANK -10- ## GENERAL FUND OVERVIEW This section of the report focuses specifically on the financial trends and activities of the General Fund, which accounts for the financial activity of the basic services provided to the community. The primary services included within this fund include the administration of municipal operations, police and fire protection, permitting and building inspection, streets and highway maintenance, culture and recreation, and economic development. ## GENERAL FUND FINANCIAL POSITION The graph below illustrates the change in the General Fund financial position over the last five years. We have also included a line representing annual revenues to reflect the change in the size of the General Fund operation over the same period. 2021 2022 2023 2024 2025 ## Fund Balance $10,449,489 $11,095,052 $12,265,915 $13,324,373 $14,462,749 Cash (Net) $10,548,733 $10,850,120 $12,382,617 $13,542,157 $14,619,900 ## Revenue $13,613,351 $14,718,976 $16,896,225 $18,919,100 $20,688,086 $ – $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 ## General Fund Financial Position ## Year Ended December 31, The City’s General Fund cash and investments balance on December 31, 2025, was $14,619,900, an increase of $1,077,743 from the previous year. Total fund balance at year-end was $14,462,749, an increase of $1,138,376 from the prior year. As the graph illustrates, the City has generally been able to maintain healthy cash and fund balance levels as the volume of financial activity has fluctuated. . -11- The City has adopted a fund balance policy that calls for maintaining an unassigned amount equal to 50.0 percent of the following years adopted operating budget plus prior year encumbrances (if any). The following graph presents this ratio for the last five years compared to this policy: 2021 2022 2023 2024 2025 ## Fund Balance Policy ## Maximum 50.0% 50.0% 50.0% 50.0% 50.0% ## Unassigned Fund Balance 50.0% 50.0% 50.0% 50.0% 50.0% 20% 30% 40% 50% 60% 70% 80% ## Fund Balance as a Percentage of Expenditures ## Year Ended December 31, As the graph illustrates, the City has met the year-end fund balance policy goal as of December 31, 2025. A government, like any organization, requires a certain amount of equity to operate. A healthy financial position allows the City to avoid volatility in tax rates; helps minimize the impact of state funding changes; allows for the adequate and consistent funding of services, repairs, and unexpected costs; and is a factor in determining the City’s bond rating and resulting interest costs. A trend that is typical to Minnesota local governments, especially the General Fund of cities, is the unusual cash flow experienced throughout the year. The City’s General Fund cash disbursements are spread relatively evenly throughout the year, other than the impact of seasonal services such as snowplowing, street maintenance, and recreation activities. Cash receipts of the General Fund are quite a different story. Property taxes comprise about 79.9 percent of the fund’s total annual revenue. Approximately half of the City’s annual property tax levy is collected and remitted to the City by the end of June and the rest by December. Consequently, cities depend on the resources this fund balance represents to provide adequate cash reserves to finance their everyday operations between these collections. -12- ## GENERAL FUND REVENUES The following graph reflects the City’s General Fund revenue sources for 2025 compared to budget: ## Other ## Special Assessments ## Charges for Services ## Licenses and Permits ## Fines and Forfeits ## Intergovernmental ## Property Taxes ## General Fund Revenues ## Budget and Actual ## Actual ## Budget General Fund revenue for 2025 was $20,688,086, which was $1,197,870 (6.1 percent) more than budget. The budget variance for revenue was largely due to conservative budgeting with most sources surpassing budget expectations. Conservative budgeting for investment earnings and elevated development activity in the current year all contributed to revenues exceeding budget. The following graph presents the City’s General Fund revenues by source for the last five years. The graph reflects the City’s reliance on property taxes, which represented 79.9 percent of General Fund revenues in 2025: ## Property TaxesIntergovernmentalAll Other 2021 $11,184,493$706,660$1,722,198 2022 $11,961,591$885,575$1,871,810 2023 $12,827,463$1,508,405$2,560,357 2024 $14,751,073$920,633$3,247,394 2025 $16,534,327$1,016,315$3,137,444 $– $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 ## General Fund Revenue by Source ## Year Ended December 31, Total General Fund revenue for 2025 was $1,768,986 (9.4 percent) more than last year. The increase in taxes was as anticipated and approved through the annual levy process. Intergovernmental increased slightly and nearly offset the decrease in all other sources. -13- ## GENERAL FUND EXPENDITURES The following graph illustrates the components of General Fund spending for 2025 compared to budget: ## Other ## Culture and Recreation ## Highways and Streets ## Public Safety ## General Government ## General Fund Expenditures ## Budget and Actual ## Actual ## Budget General Fund expenditures totaled $19,309,070 in 2025 and were $1,064,540 (or 5.2 percent) under the final budget. Spending was under budget for all General Fund expenditure categories presented above. Open positions and conservative budgeting largely accounted for these variances. Expenditure budgets are based on past history and expected needs. The following graph shows General Fund expenditures for the last five years: ## General ## Government ## Public Safety Highways and ## Streets Culture and ## Recreation ## Other 2021 $3,543,561 $6,305,076 $1,942,497 $1,397,460 $977,809 2022 $3,740,839 $6,744,368 $2,026,890 $1,428,226 $450,538 2023 $4,053,311 $7,358,699 $3,066,934 $1,628,642 $1,121,259 2024 $4,548,056 $8,090,511 $2,722,964 $1,831,463 $3,626,875 2025 $5,078,117 $8,764,030 $2,824,235 $2,008,760 $633,928 $ – $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 ## General Fund Expenditures by Function ## Year Ended December 31, Total General Fund expenditures for 2025 were $1,510,799 (7.3 percent) less than the previous year. Natural inflationary increases and the continued growth in development in the City contributed to the overall changes in current expenditures. Other expenditures were down by $2,992,947, due to the timing of capital spending, which was down in the current year. -14- ## ENTERPRISE FUNDS OVERVIEW The City maintains several enterprise funds to account for services the City provides that are financed primarily through fees charged to those utilizing the service. This section of the report provides you with an overview of the financial trends and activities of the City’s enterprise funds, which include the Water, Sewer, Street Light, Recycling, and Storm Water Utility Funds. The utility funds comprise a considerable portion of the City’s activities. We understand that the City is proactive in reviewing these activities on an ongoing basis and we want to reiterate the importance of continually monitoring these operations. Over the years, we have emphasized to our city clients the importance of these utility operations being self-sustaining, preventing additional burdens on general governmental funds. This would include the accumulation of net position for future capital improvements and to provide a cushion in the event of a negative trend in operations. ## ENTERPRISE FUNDS FINANCIAL POSITION The following table summarizes the changes in the financial position of the City’s enterprise funds during the year ended December 31, 2025, presented both by classification and by fund: 2025 2024 ## Change Net position of enterprise funds Total by classification Net investment in capital assets 112,202,886 $ 95,749,335 $ 16,453,551 $ ## Unrestricted 26,375,618 32,212,510 (5,836,892) Total enterprise funds 138,578,504 $ 127,961,845 $ 10,616,659 $ Total by fund ## Water Utility 81,596,261 $ 76,068,276 $ 5,527,985 $ ## Sewer Utility 30,521,998 27,859,546 2,662,452 ## Street Light Utility 2,122,277 2,038,066 84,211 ## Recycling Utility 400,037 416,994 (16,957) ## Storm Water Utility 23,937,931 21,578,963 2,358,968 Total enterprise funds 138,578,504 $ 127,961,845 $ 10,616,659 $ ## Enterprise Funds Change in Financial Position ## Net Position as of December 31, In total, the net position of the City’s enterprise funds increased by $10,616,659 during the year ended December 31, 2025. Additional capital grants, developer contributions, and connection fees, all contributed to the overall growth in net position. The increase in the net investment in capital assets portion of net position includes the City’s use of unrestricted resources for infrastructure improvements in the current year, along with contributions from developers, which was partially offset by current year depreciation. -15- The following table presents five years of comparative operating results for each of the City’s utility enterprise funds: 2021 2022 2023 Utility enterprise funds ## Water Operating revenue 3,057,474 $ 2,962,563 $ 3,574,961 $ Operating expenses 1,772,358 1,895,776 2,062,314 Operating income Operating income as a percentage of operating revenue 42.0 % 36.0 % 42.3 % 29.2 % 34.6 % ## Sewer Operating revenue 1,805,614 $ 1,876,957 $ 1,994,465 $ Operating expenses 1,742,380 1,947,356 2,209,802 Operating income (loss) Operating income (loss) as a percentage of operating revenue 3.5 % (3.8) % (10.8) % 0.6 % 3.5 % ## Street Light Operating revenue 222,364 $ 230,392 $ 234,607 $ Operating expenses 178,576 172,765 173,924 Operating income Operating income as a percentage of operating revenue 19.7 % 25.0 % 25.9 % 31.2 % 16.1 % ## Recycling Operating revenue 440,097 $ 452,107 $ 456,106 $ Operating expenses 507,067 514,231 527,182 Operating income (loss) Operating income (loss) as a percentage of operating revenue (15.2) % (13.7) % (15.6) % (17.4) % (20.0) % ## Storm Water Operating revenue 1,197,572 $ 1,230,582 $ 1,252,659 $ Operating expenses 715,349 791,605 864,721 Operating income Operating income as a percentage of operating revenue 40.3 % 35.7 % 31.0 % 24.3 % 27.7 % 43,788 $ 57,627 $ 1,066,787 $ 1,285,116 $ 63,234 $ (70,399) $ 2,425,906 $ 2,411,209 167,123 242,950 $ 468,514 $ 14,697 $ 75,827 $ 2025 3,610,668 $ 2,360,896 ## Operating Results – Fiscal Year Ended December 31, 1,249,772 $ 2024 924,666 $ 3,168,402 $ 2,243,736 1,512,647 $ 2,560,621 $ 2,470,049 90,572 $ 257,712 $ 216,126 482,223 $ 438,977 $ (62,124) $ (66,970) $ 327,481 $ 1,350,416 $ 1,022,935 (81,479) $ 60,683 $ (215,337) $ 1,149,661 439,912 $ 387,938 $ (71,076) $ 41,586 $ 483,595 $ 580,435 (96,840) $ 1,589,573 $ 549,993 As displayed in the table above, each of the individual enterprise funds was able to report positive operating results for the year ended December 31, 2025, except for the Recycling Fund. However, nonoperating grants and investment earnings offset most of the operating loss. Overall operating revenues totaled $8,502,169 in 2025, compared to $7,656,188 in the prior year. Increases in households and utility rates, along with more consumption, contributed to the change over the prior year. Overall operating expenses totaled $6,777,167 in 2025, compared to $6,394,996 in the prior year. Spending was up for personal services, supplies, sewer utility disposal charges, and depreciation, with an increase in population and households serviced by the City’s utility system. -16- ## GOVERNMENT-WIDE FINANCIAL STATEMENTS In addition to fund-based information, the current reporting model for governmental entities also requires the inclusion of two government-wide financial statements designed to present a clear picture of the City as a single, unified entity. These government-wide financial statements provide information on the total cost of delivering services, including capital assets and long-term liabilities. ## STATEMENT OF NET POSITION The Statement of Net Position essentially tells you what the City owns and owes at a given point in time, the last day of the fiscal year. Theoretically, net position represents the resources the City has leftover to use for providing services after its debts are settled. However, those resources are not always in spendable form, or there may be restrictions on how some of those resources can be used. Therefore, net position is divided into three components: net investment in capital assets, restricted, and unrestricted. The following table presents the components of the City’s net position as of December 31, 2025, and 2024, for governmental activities and business-type activities (utility operations): 2025 2024 ## Change Net position Governmental activities Net investment in capital assets 82,689,945 $ 72,783,568 $ 9,906,377 $ ## Restricted 11,974,763 14,022,396 (2,047,633) ## Unrestricted 38,618,625 36,934,626 1,683,999 Total governmental activities 133,283,333 123,740,590 9,542,743 Business-type activities Net investment in capital assets 112,202,886 95,749,335 16,453,551 ## Unrestricted 26,375,618 32,212,510 (5,836,892) Total business-type activities 138,578,504 127,961,845 10,616,659 Total net position 271,861,837 $ 251,702,435 $ 20,159,402 $ As of December 31, The City’s total net position on December 31, 2025, was $20,159,402 more than the previous year. Governmental activities increased $9,542,743 and business-type activities increased $10,616,659. The increase in net position within governmental activities presents the overall operating results of the governmental funds, along with the continued development and investment in infrastructure within the City. The increase in business-type activities net position matches the enterprise funds activity previously discussed. At the end of the current fiscal year, the City is able to present positive balances in all categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. -17- ## STATEMENT OF ACTIVITIES The Statement of Activities tracks the City’s yearly revenues and expenses, as well as any other transactions that increase or reduce total net position. These amounts represent the full cost of providing services. The Statement of Activities provides a more comprehensive measure than just the amount of cash that changed hands, as reflected in the fund-based financial statements. This statement includes the cost of supplies used, depreciation of long-lived capital assets, and other accrual-based expenses. The following table presents the change in the net position of the City for the years ended December 31, 2025, and 2024: 2024 ## Program ## Expenses ## Revenues ## Net Change ## Net Change Governmental activities General government 6,126,045 $ 1,872,360 $ (4,253,685) $ (3,230,831) $ Public safety 9,597,991 2,418,367 (7,179,624) (6,455,186) Highways and streets 9,194,282 8,687,382 (506,900) (247,673) Culture and recreation 2,682,150 628,392 (2,053,758) (781,208) Economic development 1,342,690 – (1,342,690) (1,488,674) Interest and fiscal charges 1,134,749 – (1,134,749) (1,317,942) Business-type activities Water utility 2,360,896 6,386,655 4,025,759 6,765,366 Sewer utility 2,539,590 4,662,217 2,122,627 911,013 Street light utility 216,126 257,712 41,586 75,827 Recycling utility 580,435 553,985 (26,450) (10,589) Storm water utility 1,198,990 3,444,019 2,245,029 1,420,317 Total net (expense) revenue 36,973,944 $ 28,911,089 $ (8,062,855) (4,359,580) General revenues Property taxes 23,699,395 23,041,341 General grants and contributions 135,308 3,760 Investment earnings 4,327,879 4,470,909 Gain on sale of capital assets 59,675 94,090 Total general revenues 28,222,257 27,610,100 Change in net position 20,159,402 $ 23,250,520 $ Net (expense) revenue 2025 One of the goals of this statement is to provide a side-by-side comparison to illustrate the difference in the way the City’s governmental and business-type operations are financed. The table clearly illustrates the dependence of the City’s governmental operations on general revenues, such as property taxes, general grants and contributions, investment earnings, and gain on sale of capital assets. In contrast, the City’s business-type activities tend to rely more heavily on program revenues like charges for services (sales) and program-specific grants to cover expenses. This is critical given the current downward pressures on the general revenue sources. The change in net (expense) revenue presented in the table above, when compared to the prior year, is primarily due to the amount of developer contributions and capital grants recognized from year-to-year. These contributions fluctuate with the size and number of completed development projects. -18- ## ACCOUNTING AND AUDITING UPDATES The following is a summary of Governmental Accounting Standards Board (GASB) standards expected to be implemented in the next few years. ## GASB STATEMENT NO. 103, FINANCIAL REPORTING MODEL IMPROVEMENTS The objective of this statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This statement also addresses certain application issues. This statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). This statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. In addition, this statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units. This statement defines unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence, and requires governments to display the inflows and outflows related to each unusual or infrequent item separately. This statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. This statement requires governments to present each major component unit separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements. This statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in the notes to RSI. The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged. -19- ## GASB STATEMENT NO. 104, DISCLOSURE OF CERTAIN CAPITAL ASSETS The objective of this statement is to provide users of government financial statements with essential information about certain types of capital assets. This statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by GASB Statement No. 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this statement requires intangible assets other than those three types to be disclosed separately by major class. This statement also requires additional disclosures for capital assets held for sale. A capital asset is considered held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. Capital assets held for sale are required to be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged. ## GASB STATEMENT NO. 105, SUBSEQUENT EVENTS The objective of this statement is to improve the financial reporting requirements for subsequent events, thereby enhancing consistency in their application and better meeting the information needs of financial statement users. This statement defines subsequent events as transactions or other events that occur after the date of the financial statements but before the date the financial statements are available to be issued. This statement describes the date the financial statements are available to be issued as the date at which (1) the financial statements are complete in a form and format that complies with generally accepted accounting principles and (2) approvals necessary for issuance have been obtained. That definition modifies the subsequent events time frame throughout the GASB literature. This statement also requires the date through which subsequent events have been evaluated to be disclosed. This statement clarifies the subsequent events that constitute recognized and nonrecognized events and establishes specific note disclosure requirements for nonrecognized events. The requirements of this statement are effective for fiscal years beginning after June 15, 2026, and all reporting periods thereafter. Earlier application is encouraged. ## CITY OF RAMSEY ## ANOKA COUNTY, MINNESOTA ## Special Purpose Audit Reports ## Year Ended December 31, 2025 ## THIS PAGE INTENTIONALLY LEFT BLANK ## Page ## 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 1–2 ## Independent Auditor’s Report on Minnesota Legal Compliance 3 ## Table of Contents ## CITY OF RAMSEY ## Special Purpose Audit Reports ## Year Ended December 31, 2025 ## ANOKA COUNTY, MINNESOTA ## THIS PAGE INTENTIONALLY LEFT BLANK -1- ## 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 City Council and Management ## City of Ramsey, 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, each major fund, and the aggregate remaining fund information of the City of Ramsey, Minnesota (the City) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’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’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’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 City’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. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. (continued) -2- ## REPORT ON COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City’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. ## 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’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’s internal control and compliance. Accordingly, this report is not suitable for any other purpose. Respectfully submitted, ## LB CARLSON, LLP ## Minneapolis, Minnesota June 1, 2026 -3- ## INDEPENDENT AUDITOR’S REPORT ## ON MINNESOTA LEGAL COMPLIANCE ## To the City Council and Management ## City of Ramsey, 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, each major fund, and the aggregate remaining fund information of the City of Ramsey, Minnesota (the City) as of and for the year ended December 31, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated June 1, 2026. ## MINNESOTA LEGAL COMPLIANCE In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions of the contracting – bid laws, depositories of public funds and public investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statutes § 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. ## PURPOSE OF THIS REPORT 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 report is not suitable for any other purpose. Respectfully submitted, ## LB CARLSON, LLP ## Minneapolis, Minnesota June 1, 2026 ## THIS PAGE INTENTIONALLY LEFT BLANK 3. 1. ## CC Work Session ## Meeting Date: 06/09/2026 ## Primary Strategic Plan Initiative: Enhance City’s communication through transparency and accountability. ## Information ## Title: ## Review Future Topics/Calendar ## Purpose/Background: The attachment is the current list of future topics for work session discussions. Items are drawn from Council requests at meetings, or are related to topics that have been identified in the City's strategic plan. ## Recommendation: For Council review - no formal action necessary. ## Outcome/Action: For Council review. ## Attachments ## Future Topics List ## Form Review ## InboxReviewed ByDate ## Brian HagenBrian Hagen06/04/2026 10:31 AM ## Form Started By: Katie SchmidtStarted On: 06/02/2026 11:11 AM ## Final Approval Date: 06/04/2026 ## Tentative City Council Future Work Session Topics ## Proposed ## Date ## Topic Minutes (Estimate) 2026 ## 06/23 City Administrator Performance Evaluation ## 06/23 Waterfront Security Cameras ## 06/23 Council Salaries – CM: KB, CR ## 06/23 Holiday Market Feasibility Analysis ## 06/23 Community Art Resource Guide 07/14 Budget 90 07/28 Budget 90 ## 07/28 Quarterly Police & Fire Update 08/10 Budget 90 08/25 Budget 90 09/08 Budget 90 ## 10/27 Quarterly Police & Fire Update ## TBD Wage Theft Enforcement Policy/Project Labor Agreement Policy follow up ## TBD City Facilities Tour ## TBD Discuss Commercial Property Public Utility Connection ## Program ## TBD Subdivision Code 4. 1. ## CC Work Session ## Meeting Date: 06/09/2026 ## Primary Strategic Plan Initiative: Enhance City’s communication through transparency and accountability. ## Information ## Title: ## Update on Outside Committees ## Purpose/Background: This case will be added to the second work session meeting every other month. This provides an opportunity for the full Council to receive an update on outside committees from the Councilmembers who serve on those committees. ## Outside Committees: ## Anoka County Fire Protection Council (ACFPC) ## Anoka County Joint Law Enforcement Council (JLEC) ## Fire Relief Association ## Lower Rum River Watershed Management Organization (LRRWMO) ## North Metro Mayors Association ## Twin Cities Gateway Board ## Quad Cities Cable Communications Commission (QCTV) ## Recommendation: For Council Discussion - no formal action necessary. ## Outcome/Action: For Council Review. ## Attachments No file(s) attached. ## Form Review ## InboxReviewed ByDate ## Brian HagenBrian Hagen06/04/2026 10:30 AM ## Form Started By: Katie SchmidtStarted On: 06/01/2026 10:31 AM ## Final Approval Date: 06/04/2026