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2025-04-28 Joint Power Water Board AgendaJoint Powers Water Board AGENDA Regular Meeting of April 28, 2025 Joint Powers WTP 11100 5011 Street NE Albertville, MN 6:00 PM Chairperson Rob Olson Board Members Mike Amery Gretchen Barrett Joe Hagerty Zach Schoen Bob Zagorski 1. Call to Order / Roll Call 2. Approve Agenda — Page 1 Engineer Chris Larson, SEH Operations John Seifert, Veolia Jennifer Thomas, Veolia Dustin Carlson, Veolia 3. Consent Agenda — Page 2 3.1 Approval of March 24, 2025 Regular Board Meeting Minutes— Page 3 3.2 Approval of April 2025 List of Claims— Page 6 3.3 Approval of April 2025 Budget Report— Page 7 3.4 Approval of April 2025 Cash Balances Report— Page 8 3.5 Approval of February 2025 Investment Reports - Page 9 3.6 Approval of March 2025 Monthly Operations Report— Page 11 3.7 Change in Office Hours - Page 24 3.8 May 2025 Board Meeting - Page 25 4. General Business - Page 27 4.1 Abdo Audit Results -Page 28 5. Engineer 6. Operations 7. Other Business / Announcements / Correspondence - Page 74 7.1 T-Mobile Outstanding Payment- Page 75 7.2 Treatment Plant Upgrade Submittal to Project Priority List to Minnesota Department of Health (John will provide an update at the meeting) 8. Adjourn Page 7. of 76 CONSENT AGENDA Page 2 of 76 Joint Powers Water Board Regular Meeting Minutes March 24, 2025 Page 1 1. Call to Order. The regular meeting of the Joint Powers Water Board was called to order by Chairperson Olson, on Monday, March 24, 2025 at 6:00 p.m. at the Joint Powers Water Board Water Treatment Plant, 11100 50'h St NE, Albertville, MN 55301. Board present: Mike Amery, Gretchen Barrett, Joe Hagerty, Rob Olson, Zach Schoen, Bob Zagorski. Board absent: None. Staff present: John Seifert, General Manager. Staff absent: Jennifer Thomas, Office Manager; Dustin Carlson, Water Department Supervisor / Facilities Manager. Engineering present: Chris Larson, Short Elliott Hendrickson, Inc. (SEH). Engineering absent: None. 2. Approve Agenda. Hagerty moved, Schoen seconded, to adopt the Agenda as presented. Motion carried 6-0. 3. Approve Consent Agenda. Barrett moved, Zagorski seconded, to approve the Consent Agenda below. 3.1 Approval of February 24, 2025 Regular Board Meeting Minutes 3.2 Approval of March 2025 List of Claims 3.3 Approval of March 2025 Budget Report 3.4 Approval of March 2025 Cash Balances Report 3.5 Receipt of January 2025 Investment Summary Report 3.6 Approval of February 2025 Monthly Operations Report 3.7 Joint Powers Water Board 2024 Limit Reconciliation 4. General Business. 4.1 Minger's Final Payment Application No. 4 for JPWB ASR/15'h Street Watermain Looping Project. General Manager Seifert informed the Board that AE2S recommends acceptance of the ASR / 15'h Street Watermain Looping Project completion and payment of Final Application No. 4. Zagorski moved, Barrett seconded, to approve the completion of the JPWB ASR / 1V Street Watermain Looping Project and payment of Final Application No. 4. Motion carried 6-0. 4.2 Update on Water Treatment Plant Upgrade Project. General Manager Seifert provided the Board with an update on the water treatment plant upgrade project. Mark Hardie with HR Green supplied an updated and completed feasibility report under the current scope of services started in 2024. Seifert explained to the Board the need for expanding the water treatment plant's Page 3 of 76 Joint Powers Water Board Regular Meeting Minutes March 24, 2025 Page 2 capacity to meet current needs by use of additional pressure filters, as well as improving the solids handling and backwash water recycling to meet future water demands. The 2024 construction estimate is $19,660,000. The Board's auditor, Abdo, utilized a 3% ENR index inflation rate for construction costs. This equates to a total budget estimate in 2026 for construction, engineering and finance of $21,218,000. Seifert also told the Board that as part of the ongoing effort to secure additional funding for the water treatment plant upgrades, Staff worked with the three member City TAC members to update the congressional spending request based on the direction from Representative Tom Emmer's office. The portal submission was entered and confirmed to be received by Representative Emmer's office, along with letter of support from the member Cities. Once submitted as a collective community funded project for Representative Emmer, the appropriations package for fiscal year 2026 will need to become legislation before any confirmation of funding levels for the Joint Powers project can be secured. Staff will continue to work with Representative Emmer's office on any follow-up requests. Seifert also told the Board that Senator Klobuchar has notified that she will be accepting federal funding requests. Staff is working to apply for funding by March 31�'. Seifert also discussed a state bonding request that Representative Walter Hudson applied to House File 1541. There was a hearing on March 13'h at the State Capital that Staff and City Administrators were able to provide testimony for the need of bonding for the water treatment plant upgrades. 4.3 Office Cubicles. General Manager Seifert discussed the 2025 project updates with the Board. The treatment plant upgrade scope covers floor coatings, carpet replacement and furnishing updates in 2025. Staff found office cubicles and desks at a greatly reduced rate of $1,200 per cubicle for a total of $4,800. Amery moved, Hagerty seconded, to approve the purchase of office cubicles with electric standup desks for a total cost of $1,200 material and installation for each cubicle. Motion carried 6-0. 5. Engineer. 5.1 GSR Project - Authorization to Advertise for Bids SEH No. 1PAH5182942. Engineer Larson requested Board authorization to proceed with the advertisement and bidding for the Ground Storage Reservoir and Pump Station project. This project will add five million gallons of ground storage at the ASR property on 15th St NE in St. Michael, as well three submersible booster pumps and a standby generator. Larson's estimate for this project is $8,100,000. Staff and Engineer Larson request approval to authorize the advertisement and bidding of this project. Amery moved, Barrett seconded, to approve the advertisement and bidding for the Ground Storage Reservoir and Pump Station project. Motion carried 6-0. 6. Operations. None. 7. Other Business / Announcements / Correspondence. None. Page 4 of 76 Joint Powers Water Board Regular Meeting Minutes March 24, 2025 Page 3 S. Adjourn. Amery moved, Zagorski seconded, to adjourn the Joint Powers Water Board meeting at 6:47 p.m. Motion carried 6-0. Page 5 of 76 JOINT POWERS WATER BOARD CHECK REGISTER SUMMARY MEETING DATE: W28125 Check# Vendor Check Date Amount Comments 18058e CITY OF ST MICHAEL 4/222025 $357,647.47 March 2025 Receipt by Charge 16059e PAYMENT SERVICE NETWORK 4222025 $6,211.81 March 2025 Web Pay Fees 18060e MN DEPT OF REVENUE 4222025 $1.302.00 March 2025 Sales Tax 18061e CENTERPOINT ENERGY 4222025 $1.337.99 March 20251nvoices 18062e XCEL ENERGY 4222025 $33.248.97 March 2025 Utilities 21451 ABDO 4232026 $2,812.00 2024 Audit 21452 AE2S 4/232025 $1,134.50 Water Storage Tank &Trunk WM EA 21453 ANDREW GONOWOLO 4/232025 $0.73 Ref cr bat on 967752nd Ln NE 21454 BECKY ANDERSON 423/2025 $116.161 Ref cr bat on 4653 Naber Av NE 21455 BRAUN INTERTEC CORPORATION 4232025 $8,443.00 STM Ground Storage Reservoir 21456 CHRISTOPHER CONLAN 4/P32025 $130.07 Ref or bat on 508 Dogwood Av NW 21457 CITY OF HANOVER 4232025 565,538.13 March 2025 Receipts by Charge 21458 DAVID SPALDING 4232025 $81.31 Ref cr bat on 4352 Maymse Av NE 21459 EROSION WORKS 4232025 $1,000.00 Refund dep Meter 19134157 21460 FEHN COMPANIES 4232025 $2.250.00 Return Dep Meter 19166179/RPZ 4777675 21461 HANSON BUILDERS 423/2025 $43.44 Ref cr bat on 2704 Kensington Av NE 21462 HPAUS1 LLC 423/2025 $118.69 Ref cr bat on 420 Elder Av NW 21463 HR GREEN 423/2025 $2.206.75 WTP Study 21464 JAMESIEL17ABUH ODEGARD 4232025 $18g.15 Ref Cr bal on 2149 Lachman Av NE 21465 JAY KIRCKOF 423nO25 $72.99 Ref orbal on 12692 49th St NE 21466 JEFF/MONICA MEDORE 423Q025 $228.07 Ref cr bat on 4104 Jansen Av NE 21467 JUSTIN/MADALYN LYONS 4232025 $63.96 Ref v bat on 762 Meander Rd NE 21468 KATIE NORTHOP 4/23/2025 $74.74 Ref a bat on 10448 Kalen or NE 21469 LENNAR 423/2025 $2,460.41 Ref or bat on 969949h St NE 21470 M/I HOMES 4/232025 $117.29 Ref or bat on 2704 Kepler Av NE 21471 MARK MORRELL 423/2025 $120.61 Ref cr bat on 11361 16th St NE 21472 MESERB 423/2025 $175.00 2024 MESERB FaIVWlnlef Conference J. SeHert 21473 MICHAEL JOSEPH BRYANT 4232025 $129.62 Ref cr bal on 102404711, St NE 21474 MISSION CONSTRUCTION 4232025 $1,000.00 Refund dep Meter 19166554 21475 PAUL7rERRl BROBERG 4/232025 $70.561 Ref cr bat on 5220 Parnell AY NE 21476 RILEY/KATHRYN MCNAMEE/DAYTON 4/232026 $135.00 Ref or bal on 11496 22nd Cir NE 21477 ROBERT/RACHEL PREUSS 4/23/2025 $43.14 Ref or bal on 11702 Bth St NE 21478 SARAH/SHELLY JO/HARLEY TOFTE 4/2312025 $103.02 Ref or bat on 12828 43rd St NE 21479 Short Elliott Hendrickson Inc 4/232025 $47.370.37 GSR and Pump Station 21480 STEPHANIE BRASCHLER 4/23/2025 $95.88 Ref cr bat on 309 Central AVW 21481 STEVEWPAMELA MICHAUD 423/2025 $222.94 Ref a bat on 469 Dogwood Ct NW 21482 TEGRETE 423/2025 5474.00 April 20251nvoice 21483 THOMAS/KAYE DOOLEY 4232025 $126.00 Ref a bal on 4542 Landmark or NE 21484 TYLE PELOFSKE 4232025 $125.57 Ref or bat on 9178 25m St NE 21485 WEB MIN $4,621.7 GIB Services 21486 ZANE/KELLIE HALL 4232025 $125.005 Ref cr bat on 925926th St NE 1 $541,767,091 Mike Amery Rob Olson Gretchen Barrett Bob Zagorski Joe Hagerty Zach Schoen Page 6 of 76 Joint Water Board Budget-2025 JPWB Board Meeting April 2025 2025 Account Descr Budget 2025 Arm YTD Budget YID Arm FUND 101 GENERAL FUND E 10140000-700 Advertising $200.00 $0.00 $200.00 $0.00 E 3014000D-702 Ucense/Fees $375.00 $0.00 $375.00 $450.00 E 30140000-704 Bank Charges $500.00 $0.00 $500.00 $65.00 E 30140000-712 Contract Maintenance $1,277,438.00 $0.00 $1,277,438.00 $319,365.69 E 10140000-730 Insurance $32,000.00 $0.00 $32,000.00 $0.00 E 10140000-734 Meeting Allowance $300.00 $0.00 $300.00 $0.00 E 10140000-748 Office Supplies $500.00 $0.00 $500.00 $0.00 E 10140000-749 Credit Card Fees $32,000.00 $2,684.12 $32,000.00 $11,775.20 E 10140000-752 Audit Fees $26,500.00 $2,812.00 $26,500.00 $19,062.00 E 10140D00-754 GIS Engineer fees $7,500.00 $4,621.75 $7,500.00 $4,756.75 E 10140DOD-756 General Engineering F $24,000.00 $1,430.53 $24,000.00 $6,276.59 E 10140000-758 Legal Fees $4,000.00 $0.00 $4,000.00 $257.00 E 10140000-759 ASR-MiSC $1,000.00 $0.00 $1,000.00 $0.00 E 10140000-770 System Maintenance $30,000.00 $1,337.99 $30,000.00 $3,975.61 E 10140000-771 Well Maintenance $100,000.00 $0.00 $100,000.00 $0.00 E 10140000-772 System Repairs $35,000.00 $0.00 $35,D00.00 $1,344.00 E 3014000D773 Facility Mgmt $25,000.00 $474.00 $25,000.00 $1,410.00 E 101-40DDO-774 Utilities $340,000.00 $33,248.97 $340,000.00 $85,920.33 E 10140DOD-785 DNR Water Usage $24,000.00 $0.00 $24,000.00 $19,025.81 E 10140000-795 Misc Expense $1,500.00 $175.00 $1,500.00 $175.86 E 1014000D796 EDA/RR Fees $1,100.00 $0.00 $1,100.00 $0.00 FUND 101 GENERAL FUND $1,962,913.00 $46,784.36 $1,962,913.00 $473,859.84 $1,962,913.00 $46,784.36 $1,962,913.00 $473,859.84 0423/25 3:09 PM Page t Page 7 of 76 ni m m m m m C $ V m N Oi O N O � N W N H N N N p O O O O O O N W g N H N O 6 d O O o 0 o O N H N N N q W O o 0 0 0 0 00 C N a � N F O tW.f .- m C N cN N N cry 3 s to '^ N y N 0 g m � _ ry N N < y Y S N Q 0 N N O y O l7 10 Page 8 of 76 ^gRS � "$ _ c $m^gym., . .g HI gg 8�8 8 R E8 888� .— 8R88888r8888R$ E9 „ 88Rr g'"o o„a$m�maeRam:� „o E_2 e� NR�&RJ �`99.�nYdw m 8 $ 88888888888888 $ e '8 a ASRR�RRR$RR6RR "' 8 $ $ $ e 8 8 o E 7 a R a z — mx.a.8.s.sm $a88as.rassora PH 2 xxxxxxx x xxxxxxxx xx##x��ee _ 8888ry 88888888888888 5is8� n n �Rn � RRoCo"n �rynn �� SSS"�� so a�Cryr`agg�''��QgCQQ�vl �F m� n '�FSo `m �, m`meOpefrfrAmmu E =zfr3 gt� y`Y 93gg rc A�Eim ¢`yo pe'Xo ¢B`�y ��fr FRFF€im Lm m epo i �g o xixxwxxx: nmw� _ LLOOOV V VVVO E � yg pU00J..... 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Carlson - Supervisor & Facilities Manager Jennifer Thomas - Office Manager Ruth Klick - Project Associate Delena Daleiden - Admin. - Finance Jen Stodola -Admin March 2025 0 Operators Joseph Hill - Lead Operator Fred Holies - Operator Kyle Golby - Operator Grayson Maresh - Operator Executive Summary Joint Powers effectively produced 79.679,000 gallons of water in the report month. All bacteriological samples were negative. The average fluoride concentration was 0.74 mg/L (Limits are 0.5 & 0.9). The total production to the disbibution system was 78,953,600 gallons and actual consumer use was 60,524,600 gallons, an average daily amount of 1.95 million gallons per day. Operations The standard operations of the facilities include: Daily testing of fluoride and chlorine in the system. • Monthly performance inspections on wells. ? Monthly bacteriological sampling (25 samples). • Bulk chemical deliveries. • ERT missed reads/ meter checks. 4 Chemical feed systems adjustments & maintenance. • Laboratory equipment calibrations. ? Safety and training meetings. • MC Lite meter reading routes for Hanover & St. Michael. • Regularly scheduled operations & maintenance meetings. • Routine daily rounds, inspections, and security checks of the water treatment plant. • Routine weekly off -site facilities inspections and security checks. • Regular backwashing of filters, reclaiming and pumping of backwash sludge. • Monthly performance inspections of emergency generators. • Monitoring & regulating access to the water towers for telecommunications companies to make repairs & upgrades. Major Activities Uncommon Operations and Major Corrective Maintenance: c• Hydrant Repair- 451h PI NE • Pushing hard to complete the Lead Service Line Inventory Page 11 of 76 Safety & Training Each month our staff performs inspections of all safety equipment such as fire extinguishers, eyewash stations, chemical showers, and emergency lighting. We also have safety meetings during the month that consist of both routine and non -routine topics. Call -Outs (After -Hours Emergency Calls) 6 None in March Regulatory Communications Our monthly regulatory communications were completed satisfactorily and on -lime. These were: 4 The monthly Fluoridation report to the MDH 4 The monthly bacteriological test results to the MDH O The monthly injection/recovery report to the EPA Major Client / Public Relations Issues O None in March Distribution System Statistics Total Hanover St Michael Joint Powers Comments Locates (GSOC) 323 75 245 3 Gopher State One Call, Tickets Received Hydrants Flushed 0 0 0 0 Spnng/Fall(Joint Powers Ave Albertville) Including water quality issues (Albertville), water Customer Service Visits 16 0 16 0 usage issues, curb stops antoff,water main operations. special locates (not through GSOC) & mist. issues. Inspections 32 7 25 NA These include out -or bounds read checks, leaking Meter/ERT Issues/Repairs 54 7 47 NA meters, bad ERTs/replacements, wiring issues, missed reads, monthly meter reading, etc. Maintenance Work Orders 47 1 0 46 These include issues/repairs & regular maintenance for the disc. systems & JP facilities. Finals 61 15 46 N/A YTD Reconcilable Limit Budget Budget Expenses Balance LIM $356.000 $37,166 $318.834 Final reconciliation will occur after year-end finances have been processed'No updates on Actual available at time of report. Estimated Appendices Monthly Fluoride Report, Monthly Bacteriological Report, Monthly ASR EPA Report Page 22 of 76 J jmN j j N 0 w Utz O o C U V'Z N N q- w Y E 2 P U N m w '.0 n4 w n n m m en n n m m n n n4 n n n m m m n n n n u n n m m � n 0 a LL oocci o e e o o o o o eeoc000eoe0000c o m p O OO O Yf O y O a O y N 'f N Yj O N N n1 N O O 4 O O O Q N N V O Yl O Y O O V O V O V O O OO O O N O V O O m O _ 5 4 m ty v1 O W d E L E E E E E E a y N m A a N m O b O O W � C O OO OO OO q tmV 0 1'l N 0 N, n O_ 0 e0. 0 0 0 V m R. N ry tr M IV N N lV q x � i R 2 O t R= = O� � 3ae m� 333333 33 3 y e n� n m� m n bm m n n ui m eu n e m m em u u n e n a� m n m$ m m 3 O' -O b 3= S ........... 0 0 0 0 ...... 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R..T.mp 1➢G{C Page 14 of 76 Year: 2025 (2025 Cycle) Month: March U.S. ENVIRONMENTAL PROTECTION AGENCY MONTHLY MONITORING REPORT FOR CLASS V INJECTION WELLS UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Board ADDRESS: 11000 50th St NE WELL NAME: Well 9 CITYISTATE2IP: Albertville, MN 55301 WELL COUNTY: Wright PHONE: (763)497-3611 MONTHLY REQUIREMENTS Injection (Gallons) Total Injection Period YTD Volume Total Report Month Volume Total Injection Period Volume 53,090,000 1 18,429,000 73,878,000 Injection Pressure & GPM Average Highest Value Lowest Value Monthly Injection Pressure (psig) 29.58 32 28 Monthly Injection Flow Rate GPM 413.32 422 405 Total Recovery Period I Total Report % of Injection Period Total Recovery (Gallons) YTD Volume I Month Volume Volume 0 1 0 0.00% COMMENTS: The 2025 ASR cycle began on November 26th, 2024 with the injection phase. Test well 6 and ASR well 9 were flushed to waste and background testing & sampling was performed on both wells and the injection source, the Joint Powers distribution system, before injection was begun. CERTIFICATION I certify under the penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaiing the information. I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and punishment. (Ref. 40 CFR Section 14432) Dustin W. Carlson, Water Operations Supervisor & Facilities Manager Name and Signature: Date Signed: H- 7- 2,5 Page 15 of 76 \ 0 E 5 ! 2 |•, Ci j ! _ 16 ,76 \} � \! ]\ § )§ § { �! ) \ \Z (� � \ ) l,�s§!$ § (:®))!! ®) !®§###k ; ! ) }}}v l:Gj§\0 mk |K:=5:2 §| )two§\\\ !§vv ek ) / !| | �I M 0 Page 17,76 o 10 !08 !•, /ra a 3 IQ § \ 77 ) ) ) § } ) ) ) i§§{ © ! ( 2 @ § !.!, - //)| )®/ _ 18 «76 ! \} _ C# ƒ� ( - §§ § !! \ ! !! ! k\ \Z )� E ■ [// \�0 ~ ° ^ ]` : : _ ; © ) ) k & ` 9 9 : a : ! r ): ( (/f Page 19 a76 k5E ) .5! $ �! ;;7 / !!� — vvvv |� / ! .vvv / v ! /|;z!! / !�*!m co CR ; |22vvvv ) )•� , , fl,a;f5! \\\\\&&CR! �\\Mill \\\/Is. Page 20 e76 u N 2 0 O ti a w U) Q 9 0 0 m o `m o � — 0 3 12 ,0 0 U n a i Z C A � O = N N N N N Cl! N N Cl!N N V R V V K N N N <V N N L N N N N N N Y1 10 i0 t0 �O N i Q aaaaa Q Q Q Q Q o_aan.aa Q Q Q Q Q w w w w w w w w w w w d �o A3A C (A in 7 O N K N A J r 3 d a 2 0 U 2 0 O) � U N N °3 a` ii 'E nNo� m J 0 O 0 0 0 J J J J J J J J J J J C ��m0101 m\��m01 U N U t c r ? v Q c< u E0 N«@ V Q o R u f cai y o O° m o E o �' m a 0 0 0 t O p Q t 0 0 0 E H E o a o `0 2 U U m m U H O D H H Page 21 of 76 Year. 2025 (2025 Cycle) Month: March UIC PERMIT NUMBER: MN-1713R21-0002 OPERATOR NAME: Joint Pourers Water Board ASR PTC-3 SAMPLE LOCATION: Test Well (Mt. Simon) Constituent Units Detection Limit Test Well Background Injection Test Well 95% Injection Test Well 100% Recovery nkirel ranking Swatter tandard Method Date 11/26/2024 Tem rdture 10.0 H 7.42 Conductivi us/cm OA72 ORP -71.00 Dissoly Oxygen DO 0.07 Chlorine, Total Residual JuIL 0.01 0.01 HACH 8167 5th ED 2008 4 <1.7 200 EPA 5242 0.5 1.00 10 EPA 5242400 MAmenic 76,000 EPA 52420.5 <0.33 t00o EPA 5242 50 1.700.00 300 EPA 5242ugfi. 0.1 <0.12 EPA 5242 Magnesium u L 100 27,000.00 EPA 5242 Manganese u A 0.5 210.00 50 EPA 524.2 Potassium ugIL 20 2.200.00 EPA 5242 Sodium u L 50 4,900.00 EPA 5242 Alkalinity, Total as CaCO3 m /l. 5 270 SM 2320B Chloride m 2 <0.53 250 1 SM 4500-Cl E Fluoride m A 0.1 2 SM 4500F/C Nitrogen, Ammonia mg1L 0.04 EPA 350.1 Phosphorous m OA <0.028 EPA 365A Silica, Dissolved m /L 1 13.00 200.7 MET ICP Suffate m tL 1 2.6 16.00 260 ASTM D516-02 Tolal Hardness by 2340B m 1420 300.00 EPA 200.8 Nitrogen. Kjeldahl, Total m 1 0.28 EPA 3512 Total Organic Carbon m d. 2E7.19 EPA 9060 Gross Alpha pCVL EPA 900.0 Adjusted Gross Alpha CVL 15 Ra-226 COL 5 EPA 903.1 Ra-228 pCVL 5 EPA 904.0 Ra-226+Ra-228 pCVL 5Total Uranium u 0.5 EPA 200.8 Bromodichloromelhane u IL 0.5 EPA 524Bromoform u L 4 EPA 5242 Chloroform u L 0.5 <0.20 EPA 5242 Dibromochloromethane u /L 0.5 <0.10 EPA 624.2 Total Tdhalomethanes Calc. u IL <0.20 80 EPA 5242 Dirbomoacetic Acid u IL 1 <0.60 EPA5522 Dichloroacetic Acid u /L 1 <0.60 EPA5522 Monobromoace0c Acid u 2 1 <0.70 EPA5522 Morcchloroaccedc Acid u 2 1 <1.1 EPA 5622 Tridhloroacetic Acid u i <0.50 EPA5522 Total Haloacetic Acid u L <1.1 60 EPA5522 Uranium -234 pCVL 1,270 HSL300 Uranium-235 pCVL 0.0275 HSL300 Uranium-238 pCVL 0.284 HSL300 Page 22 of 76 Year: 2025 (2025 Cycle) Month: March UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Board ASR PTC3 SAMPLE LOCATION: Well (Mt. Simon) Constituent Units Detection Limit Well 5% Recovery Well 30% Recovery Well fi0% Recovery Well 100% Recovery Federal Drinking Water Standard Method Date Temperature •C PH Std Units ConductiAty us/an ORP mV Dissolved Oxygen (DO Chlorine, Total Residual m /L 0.01 HACH 8167 5111 ED 2008 Aluminum u IL 4 200 EPA 200.8 Arsenic uyL 0.5 10 EPA200.8 Calcium uyL 400 EPA200.B Copper u L 0.5 1 1000 EPA 200.8 Iron u L 50 300 EPA 200.8 Load u L 0.1 EPA 200.8 Magnesium ugtL 100 EPA 200.8 Manganese uqVI. 0.5 50 EPA 200.8 Potassium ug/L 20 EPA 200.8 Sodium u L 50 EPA 200.8 Alkalinity, Total as CaCO3 m /L 5 SM 2320E Chlorine mg/L 2 250 SM 4500-CI E Fluoride m /L 0.1 2 SM 4500F/C Nitrogen, Ammonia m /L 0.04 EPA 350.1 Phosphorous m /L 0.4 EPA365A Silica, Dissolved mg/L 1 EPA 200.7 Sulfate 2.5 250 ASTM 0616-02 Total Hardness b 2340B m /L 1420 EPA 200.8 Nitroen, 'eldahl, Total m /L 1 EPA 351.2 Total Organic Carbon m /L 2 EPA 9060 Gross Alpha pCUL EPA 900.0 Adjusted Gross Apra PCUL 15 Ra-226 Ci/L 5 EPA 903.1 Ra-228 Ci/L 5 EPA 904.0 Ra-226 + Ra-228 pCi/L 5 Total Uranium 238 pCUL 0.5 EPA 200.8 Bromodichloromethane ug/L 0.5 EPA 524.2 Bromoform uyL 4 EPA 524.2 Chloroform u /L 0.5 EPA524.2 Dibromochloromethane u /L 0.5 EPA 524.2 Tolal Trihalomethanes (Galt.) ug/L 80 EPA5242 Dibromoacegc Acid uglL 1 EPA 552.2 Dichloroacedc Add u L 1 EPA 5522 Monobromoawtic Acid u /L 1 EPA 5522 Monochlumaoce6c Acid uyL 1 EPA 5522 Trichloroamfic Add u L 1 EPA 5522 Total Haloacetic Acid u91L 60 EPA 5522 Uranium -234 pCOL HSL300 Uranium -235 pC✓L HSL300 Uranium -238 pCOL HSL300 Page 23 of 76 / \ JoiNTPowmsWATER BoARD vHLSERNILLE. NRNOVER. 51-- MILNHEL MEMO TO: Joint Powers Water Board FROM : John Seifert DATE: April 22, 2025 SUBJECT: Change in Office Hours In working with review of the member Cities, Staff has provided a suggested office hours schedule to match similar office hours of both JPWB and its member Cities. Both St. Michael's and Hanover's hours are identical and Albertville is similar, but is providing Friday as a complete office closure. The suggested office hours would match St. Michael and Hanover with the exception of an additional hour on Thursday evening. Staff is recommending implementation to start the first Monday in May. Monday -Wednesday 7:30AM-4:30PM Thursday 7:30 AM - 5:30 PM Friday 7:30 AM-1:30 PM Recommended Motion: • Approve revised office schedule. Page 24 of 76 joiNTPowERsWATER Boaan vH1,8ERNlUE. URNOVER. 51-- 411WREL MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: April 22, 2025 SUBJECT: Reschedule May 2025 Board Meeting The May Board meeting is scheduled for Memorial Day (Monday, May 26th). The attached calendar shows St. Michael, Hanover and Albernille's schedules. Staff recommends moving the May meeting from May 26th to Monday, May 19th. Recommended Motion: • Approve moving the May 26th Board meeting to Monday, May 19th at 6:00 PM. Page 25 of 76 Cd b Y A CD rl -It H f�6 b w o M o N O, N y b C v 7 m a 0 F N Q W N O, .� CO m E °w o Ay a. �E mo 4! le E. V co � E F z�z� V Q V �N 'i' V �OSU Ny woo Nvi TL c A c 3S r UO 2� O G I Q 9 I O G. LFiI �06 ow NE .d C 7 fn .-I OJ to age o 5 GENERAL BUSINESS Page 27 of 76 / joiNT PowEas WATER BOARD vRLSERMILLF. NHNOVER. Sf MXWEL MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: April 22, 2025 SUBJECT: Abdo 2024 Audit Results Staff has worked with Abdo on the annual audit process. The Board will receive a video presentation highlighting the 2024 audit. Pending direction by the Board, Staff is looking for approval of the 2024 audit as presented. Recommended Motion: Authorize the approval of the 2024 audit as presented. Page 28 of 76 ANNUAL FINANCIAL REPORT JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 29 of 76 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 30 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Annual Financial Report Table of Contents For the Year Ended December 31, 2024 Introductory Section Board of Commissioners and Administration Financial Section Independent Auditor's Report Managements Discussion and Analysis Financial Statements Statement of Net Position Statement of Revenues, Expenses and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements Other Required Report Independent Auditor's Report on Minnesota Legal Compliance Paae No. 11 15 20 21 22 23 33 Page 31 of 76 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 32 of 76 INTRODUCTORY SECTION JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 Page 33 of 76 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 34 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Board of Commissioners and Administration For the Year Ended December 31. 2024 BOARD OF COMMISSIONERS Ryan Gleason Rob Olson Tom Dierberger Chris Kaufman Bob Zagorski Joe Hagerty ADMINISTRATION John Seifert Delena Daleiden Jennifer Thomas Title Chairman Vice -Chairman Treasurer Commissioner Commissioner Commissioner Project Manager Finance Assistant Customer Service Manager Page 35 of 76 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 36 of 76 FINANCIAL SECTION JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31.2024 Page 37 of 76 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 Page 38 of 76 AbdoSolutioas.com INDEPENDENT AUDITOR'S REPORT Board of Commissioners Joint Power Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Report on the Financial Statements Opinion We have audited the accompanying financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota, as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise the JPWB'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 Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota as of December 31, 2024, and the respective changes in financial position and cash flows 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 (GARS). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the JPWB 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. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 JPWB's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. — Lighting the path forward 11 Page 39 of 76 Auditors 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 auditors report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAINS, 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 JPWB'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 JPWS'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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 15 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. — — AbdoSoiuttonscom 12 Page 40 6 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditors 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. Abdo Minneapolis, Minnesota April 9, 2025 AbdoSolurlons.com 13 Page 41D06 THIS PAGE IS LEFT BLANK INTENTIONALLY 14 Page 42 of 76 Management's Discussion and Analysis This section of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota annual financial report presents our analysis of the JPWB's financial performance during the fiscal year that ended December 31, 2024. Please read it in conjunction with the financial statements which follow this section. Financial Highlights • The assets of the JPWB exceeded its liabilities at the close of the most recent fiscal year by $35,874,968 (net position). • Net position increased $2,735,119 or 8.3 percent. The increase is mainly attributable to an increase in connection fees from the prior year, as well as operating revenues exceeding operating expenses. • The cash and investment balance at the close of the current fiscal yeartotaled $20,293,984. Overview of the Financial Statements This annual report consists of three parts: Management's Discussion and Analysis, Financial Statements, and Supplemental Information. The financial statements also include notes that explain in more detail some of the information in the financial statements. Required Financial Statements The financial statements of the JPWB report information about the JPWB using accounting methods similar to those used by private sector companies. These statements offer short- and long-term financial information about its activities. The Statements of Net Position includes all of the JPWB's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to JPWB's creditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of the JPWB and assessing the liquidity and financial flexibility of the JPWB. All of the current years revenues and expenses are accounted for in the Statements of Revenues, Expenses and Changes in Net Position. This statement measures the success of JPWB's operations over the past year and can be used to determine whether the JPWB has successfully recovered all its costs through its user fees and other charges, profitability and credit worthiness. The final required financial statement is the Statements of Cash Flows. The primary purpose of this statement is to provide information about the JPWB's cash receipts and cash payments during the reporting period. The statement reports cash receipts, cash payments and net changes in cash resulting from operations, investing, financing activities and provides answers to such questions as where cash came from, what was cash used for and what was the change in cash balance during the reporting period. 15 Page 43 of 76 Financial Analysis of the JPWB Our analysis of the JPWB begins on page 20 in the financial section. One of the most important questions asked about the JPWB's finances is "Is the JPWB as a whole better or worse off as a result of this years activities?' The Statements of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the JPWB's activities in a way that will help answer this question. These two statements report on the net position of the JPWB and changes in corresponding net position. You can think of the JPWB's net position as one way to measure financial health or financial position. Over time, increases or decreases in the JPWB's net position are one indicator of whether its financial health is improving or deteriorating. However, consideration should be given to other non -financial factors such as changes in economic conditions, population growth, zoning restrictions, and new or changed government legislation. Net Position To begin our analysis, a summary of the JPWB's Statements of Net Position is presented in Table A-1. TABLE A-1 Condensed Statements of Net Position Increase 2024 2023 (Decrease) Assets Current assets $ 21,521,089 $ 20,276,097 $ 1,244,992 Noncurrent assets Capital assets (net of depreciation) 15,277,251 13,995,252 1,281,999 Other assets 1,154,090 1,830,837 (676,747) Total Assets 37,952,430 36,102,186 1,850,244 Liabilities Current liabilities Deferred Inflows of Resources Deferred leases resources Net Position Net investment in capital assets Unrestricted Total Net Position Water Rates 987,741 1,221,669 (233,928) 1,089.721 1,740,668 (650,947) 15,277,251 13,995,252 1,281,999 20,597,717 19,144, 597 1,453,120 $ 35,874,968 $ 33,139,849 $ 2.735,119 The JPWB bills customers a base charge as well as a usage charge. Usage charges are intended to cover the cost of providing treated water to the customers. The base charge is intended to cover the monthly costs associated with reading meters and generating the monthly bills regardless of usage for each customer. In addition this base fee covers the depreciation of the Meters and related equipment for future replacement. Without these base charges, the amounts from usage charges would not be able to cover the needed repairs and maintenance, and the system would eventually deteriorate. 16 Page 44 of 76 Statements of Revenues, Expenses and Changes in Net Position While the Statements of Net Position show the change in financial position of net position, the Statements of Revenues, Expenses and Changes in Net Position, provides answers as to the nature and source of these changes. A closer examination of the individual categories affecting the source of changes in net position is discussed below: TABLE A-2 Condensed Statements of Revenues, Expenses and Changes in Net Position Increase 2024 2023 (Decrease) Revenues Operating revenues Water sales S 2,918,049 S 3,459,006 $ (540,957) Nonoperating 1,143,990 881,035 262,955 Total Revenues 4,062,039 4,340,041 (278,002) Expenses Contract maintenance 1,103,728 1,599,327 (495,599) Depreciation expense 814,106 805,407 8,699 Engineer fees 117,211 56,090 61,121 Insurance 28,811 27,377 1,434 Professional services 29,527 34,017 (4,490) Utilities 214,957 836 214,121 Repairs and maintenance 150,078 411,578 (261,500) Miscellaneous expenses 76,861 65,055 11,806 Total Expenses 2,535,279 2,999,687 (464,408) Income Before Contributions 1,526,760 1,340,354 186,406 Capital Contributions - Connection Fees 1,208,359 746,759 461,600 Change in Net Position 2,735,119 2,087,113 648,006 Net Position, January 1 33,139,849 31,052,736 2,087,113 Net Position, December 31 $ 35,874,968 $ 33.139. 449 $ 2,735,119 • The change in revenues resulted directly from a decrease in customer water sales offset with an increase in water connections. • Expenditures decreased $464,408 during the year mainly due to the decrease in contract maintenance costs and repairs and maintenance of the water system. 17 Page 45 of 76 Capital Assets The JPWB's investment in capital assets as of December 31, 2024, is described below. This investment in capital assets includes land, buildings, infrastructure, machinery, and equipment. Additional information on the JPWB's capital assets can be found in Note 2B starting on page 29 of this report. Land Construction in Progress Buildings Infrastructure Machinery and Equipment Total Percent Increase/Decrease Economic Factors and Next Years Budget and Rates Increase 2024 2023 (Decrease) $ 904,232 S 904,232 $ - 1,931,081 910,691 1,020,390 542,197 709,586 (167,389) 11,622,080 11,173,970 448,110 277,661 296,773 (19,112) S 15.277.251 $ 13. 995.252 $ 1,281,9 99 9.16% Joint Powers Water Board supplies water to the cities of Hanover, St. Michael and Albertville. The local housing markets continue to be strong with several new developments ongoing. Joint Powers has completed and implemented a long range plan and formal rate analysis. This plan included a number of expensive infrastructure projects. Therefore, the board determined it was necessary to raise rates for future years. Therefore, the board determined it was necessary to raise rates to adjust for the increased cost of operations. Contacting the JPW B Financial Manager This financial report is designed to provide our citizens, customers, investors, and creditors with a general overview of the JPWB's finances and to demonstrate the JPWB's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to John Seifert, Veolia Water, JPWB Project Manager, 11100 - 5P Street North East, Albertville, MN 55301. 18 Page 46 of 76 FINANCIAL STATEMENTS JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 19 Page 47 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statement of Net Position December 31, 2024 Assets Current Assets Cash and cash equivalents $ 2,563,625 Investments 17,730,359 Receivables Interest 38,747 Accounts receivable 857,801 Special assessments 23,113 Leases 99,631 Due from other governments 101,358 Prepaid items 106,455 Total Current Assets 21,521,089 Noncurrent Assets Connection charges 165,127 Lease receivable 988,963 Capital assets Land 904,232 Construction in progress 1,931,081 Buildings 4,199,522 Infrastructure 22,629,851 Machinery and equipment 422,644 Total Capital Assets, Cost 30,087,330 Less Accumulated Depreciation (14,810,079) Total Capital Assets, Net 15,277,251 Total Noncurrent Assets 16,431,341 Total Assets 37,952,430 Liabilities Current Liabilities Accounts payable 57,424 Due to other governments 909,018 Customer deposits payable 21,299 Total Liabilities 987,741 Deferred Inflows of Resources Deferred leases resources 1,089,721 Net Position Investment in capital assets 15,277,251 Unrestricted 20,597,717 Total Net Position $ 35.874. 668 The notes to the financial statements are an integral part of this statement. 20 Page 48 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2024 Operating Revenues Water sales $ 2,918,049 Operating Expenses Contract maintenance 1,103,728 Depreciation expense 814,106 Engineer fees 117,211 Insurance 28,811 Professional services 29,527 Utilities 214,957 Repairs and maintenance 150,078 Miscellaneous expenses 76,861 Total Operating Expenses 2,535,279 Operating Income 382,770 Nonoperating Revenues (Expenses) Interest income 995,969 Antenna lease 134,232 Miscellaneous 13,789 Total Nonoperating Revenues (Expenses) 1,143,990 Income before Contributions and Grants 1,526,760 Capital Contributions - Connection fees 1,208,359 Change in Net Position 2,735,119 Net Position, January 1 33,139,849 Net Position, December 31 $ 35,874.968 The notes to the financial statements are an integral part of this statement. 21 Page 49 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activates Receipts from customers and users $ 2,884,603 Payments to suppliers (1,626,852) Net Cash Provided by Operating Activities 1,257,751 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (2,449,026) Connection fees received 1,208,359 Net Cash Provided (Used) by Capital and Related Financing Activities (1,240,667) Cash Flows from Investing Activities Sale (purchase) of investments, net 1,343,218 Interest on investments 485,926 Net Cash Used by Investing Activities 1,829,144 Net Increase (Decrease) in Cash and Cash Equivalents 1,846,228 Cash and Cash Equivalents, January 1 717,397 Cash and Cash Equivalents, December 31 $ 2. 663.625 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income S 382,770 Adjustments to reconcile operating income to net cash provided by operating activities Other revenue 148,021 Depreciation 814,106 (Increase) decrease in assets Accounts receivable (223,496) Due from other governments 28,482 Special assessments receivable (7,379) Lease receivable 652,074 Prepaid items (4,873) Increase (decrease) in liabilities/deferred inflows of resources Accounts payable 27,734 Due to other governments 71,460 Deferred lease resources (650,947) Customer deposits payable 19,799 Net Cash Provided by Operating Activities $ 1.257,751 Noncash Capital and Related Financing Activities Change in market value on investments S 512,005 The notes to the financial statements are an integral part of this statement. 22 Page 50 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies A. Nature of Business and Reporting Entity The Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota was established under a joint powers' agreement between the Cities of Albertville, Hanover, and St. Michael to provide water service to the local area. The JPWB operates as an enterprise and provides water service to the general public, with the majority of its costs being paid by various fees and charges to users of the water system. The JPWB consists of a six -member Board of Commissioners (the Board). Two individuals, the Mayor, and another City Council member from each City, are appointed by their respective City Council to serve on the Board of Commissioners. The JPWB does not have any component units. Beginning in 1999, the JPWB modified its agreement with the members. The charges billed and collected for water supply will remain with the JPWB, while the charges for distribution will be billed by the JPWB but the collections are owned by each member city and will be remitted to them upon collection. B. Measurement Focus Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenue 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 revenue of the JPWB enterprise fund is charges to customers for sales and services. The JPWB also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. The JPWB has the following fund type: Proprietary fund. The JPWB activities are recorded in a proprietary fund and are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The JPWB has only one fund as listed below: The Water enterprise fund accounts for those operations that are financed and operated in a manner similar to private business or where the JPWB has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Non -exchange transactions, in which the JPWB receives value without directly giving equal value in return, include grants, entitlement and donations. On an accrual basis, revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the JPWB must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the JPWB on a reimbursement basis. 23 Page 51 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) C. Assets, Liabilities, Deferred Inflows of Resources, and Net Position Cash and Cash Equivalents The JPWB's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The proprietary funds' portion in the government -wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statements of cash flows. The JPWB may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated "A° or better, revenue obligations rated "AA" or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a "depository' by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York or certain Minnesota securities broker -dealers. 9. Guaranteed investment contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. The JPWB categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The JPWB's recurring fair value measurements are listed in detail on page 28 and are valued using quoted market prices (Level 1 inputs) and brokered certificate of deposits using a matrix pricing model (Level 2). 24 Page 52 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) The JPWB has the following recurring fair value measurements as of December 31, 2024: • US Government Securities of $2,225,283 are valued using quoted market prices (Level 1 inputs) • Brokered certificate of deposits of $13,096,380 are valued using a matrix pricing model (Level2 inputs) The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City's investment in this pool is valued at an amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. The JPWB annually certifies delinquent water accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Special Assessments It is the JPWB's policy to assess delinquent balances to the County for collection. No substantial losses from present receivable balances are anticipated. Due to Other Governments The JPWB does the water and sewer billing for the cities of Hanover and St. Michael. The amounts billed are remitted to the cities as payments are received from the residents. Amounts not received are removed from the accounting records and certified to the County by each of the cities. Lease Receivable The JPWB lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. Capital Assets Property, plant and equipment are recorded at cost. Capital assets are defined as assets with an estimated useful life in excess of one year. Property, plant and equipment donated, are recorded at their acquisition value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. 25 Page 53 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 1: Summary of Significant Accounting Policies (Continued) The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Property, plant and equipment are depreciated using the straight-line method over the following estimated useful lives: Assets Buildings Machinery and Equipment Infrastructure Deferred Inflows of Resources Useful Lives in Years 20 5-20 30-40 In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The JPWB has one type of item that qualifies for reporting in this category. The item, deferred lease resources, is reported only in the statement of net position and results from future lease receipts. Net Position Net position represents the difference between assets, deferred outflow of resources and liabilities. Net position is displayed in three components: a. Investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquired capital assets. b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws, or regulations of other governments. c. Unrestricted net position -All other net position balances that do not meet the definition of "restricted" or "investment in capital assets". When both restricted and unrestricted resources are available for use, it is the JPWB's policy to use restricted resources first, then unrestricted resources as they are needed. 26 Page 54 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 2: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the JPWB's deposits may not be returned or the JPWB will not be able to recover collateral securities in the possession of an outside parry. In accordance with Minnesota statutes and as authorized by the Board of Commissioners, the JPWB maintains deposits at those depository banks which are members of the Federal Reserve System. Minnesota statutes require that all JPWB deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, which the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds. Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA' or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA' or better by Moody's Investors Service, Inc., or Standard & Poors Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. At December 31, 2024, the JPWB's carrying amount of deposits was $2,563,625 and the bank balance was $2,658,294. Of the bank balance, $250,000 was covered by federal depository insurance. The remaining balance was covered by collateral held by the JPWB agent in the JPWB's name. Investments The broker money market investment pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool share. 27 Page 55 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 2: Detailed Notes on All Funds (Continued) At December 31, 2024, JPWB had the following investments that are insured or registered, or securities held by the JPWB's agent in the JPWB's name: Credit Segmented Quality/ Time Fair Value Measurement Using Ratings t Distribution (2) Amount Level t Level Level Pooled Investments at Amortized Costs 4M Fund N/A N/A $ 2,094,566- BrokerMoneyMarketFunds N/A N/A 314,130 - - - Non -pooled Investments at Fair Value Brokered Certificates of Deposit N/A Less than 1 year 3,306,728 - 3,306,728 - Brokered Certificates of Deposit N/A 1-5 years 9,328,030 - 9,328,030 - Brokered Certificates of Deposit N/A 5-10 years 461,622 - 461,622 - GovernmentAgencySecurities AA+ Less than year 481,391 481391 - - GovernmentAgencySecurities AA+ 1-5 years 1,743,892 1,743,892 Total Investments $ 17.730,359 $ 2225,283 S 13096.3B0 S (1) Ratings are provided by Moody's credit rating agency where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. A reconciliation of cash and temporary investments as shown on the statements of net position follows: Cash and Cash Equivalents $ 2,563,625 Investments 17,730,359 Total S 20,293.984 The investments of the JPWB are subject to the following risks: • Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the JPWB's investment policy limit the JPWB's investments to the list on page 24 of the notes. • Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. It is the policy of the JPWB to require that time deposits in excess of FDIC insurable limits be secured by collateral or private insurance to protect public deposits in a single financial institution if it were to default. Third party safekeeping is required for all collateral. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. In accordance with the JPWB investment policy, investments shall be diversified to eliminate the risk of loss resulting in over concentration in a specific maturity, issuer, or class of securities. • Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. 28 Page 56 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 2: Detailed Notes on All Funds (Continued) B. Capital Assets Capital asset activity for the year ended December 31, 2024 was as follows: Business -type Activities Capital Assets not being Depreciated Land Construction in progress Total capital assets not being depreciated Capital Assets being Depreciated Buildings Infrastructure Machinery and equipment Total Capital Assets being Depreciated Less Accumulated Depreciation for Buildings Infrastructure Machinery and equipment Total Accumulated Depreciation Total Capital Assets being Depreciated, Net Business -type Activities Capital Assets, Net Beginning Ending Balance Increases Decreases Balance $ 904,232 $ - $ - $ 904,232 910,691 2,096,105 (1,075,715) 1,931,081 1,814,923 2,096,105 (1,075,715) 2,835,313 4,199,522 21,554,136 422,644 1,075,715 26,176,302 1,075,715 (3,489,936) (167,389) (10,380,166) (627,605) (125,871) (19,112) (13,995,973) (814,106) 12,180,329 261,609 4,199,522 22,629,851 422,644 27,252,017 - (3,657,325) - (11,007,771) _ (144,983) (14,810,079) 12,441,938 S 13,995.252 _L 2.357,714 $ (1,075.715) 8 15.277,251 Total depreciation for the year ended December 31, 2024 totaled $814,106. Construction Commitment The JPWB had the following outstanding construction commitment at December 31, 2024. Spent Remaining Project to Date Commitment Project name Municipal Builders- Filter Rehaibilitation $ 1,931,081 $ 25,919 29 Page 57 of 76 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2024 Note 2: Detailed Notes on All Funds (Continued) C. Lease Receivable The JPWB has multiple leases for rental of water tower space that allows others to place antennas on the towers. The lease payments are variable in nature. As of December 31, 2024 the JPWB's receivable balance is listed by individual lease as follows: Current Year Issue Interest Inflow of Balance at Description Date Rate Resources Year End E-01 TMobile 5/1/2002 2.26 % $ 43,918 $ 204,871 W-01 AT&T 5/1/2011 2.26 35,925 462,138 W-04 Verizon 5/1/2009 2.26 24,342 231,823 W-02 T Mobile 7/30/2015 2.26 28,825 189,762 Total Lease Receivable $ 1,088,594 Note 3: Other Information Risk Management The JPWB is exposed to various risks of loss related to torts; theft of damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the JPWB carries commercial insurance. The JPWB obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The JPWB pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the JPWB coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The JPWB management is not aware of any incurred but not reported claims. Note 4: Connection Charges A water main was installed in 1978 and properties along the main were not assessed at that time. These fees were recorded with the County on August 1, 2001 but have not been certified. The amount recorded as receivable at year end December 31, 2024 and 2023 were $165,127 and $171,353, respectively. 30 Page 58 of 76 OTHER REQUIRED REPORT JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2024 31 Page 59 of 76 THIS PAGE IS LEFT BLANK INTENTIONALLY 32 Page 60 of 76 AN,f4V INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Board of Commissioners Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota AbdoSolulions.com We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota as of and for the year ended December 31, 2024, and the related notes to the financial statements, and have issued our report thereon dated April 9, 2025. In connection with our audit, nothing came to our attention that caused us to believe that the JPWB failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the JPWB's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use those charged with governance and management of JPWB and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. Abdo Minneapolis, Minnesota April 9, 2025 Lighting thepathforwnrd 33 Page 61 of 76 Executive Governance Summary Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota For the year ended December 31, 2024 ■� Edina Office Mankato Office N 5201 Eden Avenue, Ste 250 100 Warren Street, Ste 600 `N"a Edina, MN 55436 Mankato, MN 56001 Liglainq the path lorwan/ P 952.835.9090 P 507.625.2727 Scottsdale Office 14500 N Northsight Blvd, Ste 233 Scottsdale, A2 85260 P 480.864 "7?age 62 of 76 AAA Abdo Solutions.com \A April 9, 2025 Board of Commissioners Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota We have audited the financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota, as of and for the year ended December 31, 2024 and have issued our report thereon dated April 9, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 6, 2024. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the JPWB's internal control over financial reporting (internal control) as a basis for designing auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the JPWB's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the JPWB's internal control over financial reporting. 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. Amaterial weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that material misstatement of the JPWB's financial statements will not be prevented or detected and corrected on a timely basis. Asignificant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit the attention of those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a deficiency in internal control, described on the following page as finding 2024-001 and 2024-002 which we consider a significant deficiency. — Lighting the path fomard 1) Page 63 of 76 2024-001 Preparation of the Financial Statements Condition: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Auditing standards require auditors to communicate this situation to the Board as an internal control deficiency. Uhimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with organizations of your size. However, based on recent auditing standards, it is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management. Essentially, the auditors are not to be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Cause: From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with organization of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors in financial reporting. Recommendation: It is your responsibility to make the ultimate decision to accept this degree of risk associated with this condition because of cost or other considerations. As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosure in your statements. We are satisfied that the appropriate steps have been taken to provide you with the completed financial statements. While management is reviewing the financial statements we recommend a disclosure checklist is utilized to ensure all required disclosures are presented and management should agree its financial software to the numbers reported in the financial statements. Management Response: For now, JPWB's Board and management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements. AbdoSolu Eton s.com Page Q 2024-002 Limited Segregation of Duties Condition: During our audit we reviewed procedures over cash disbursements, cash receipts, cash reconciliation, and journal entries and found the JPWB to have limited segregation of duties over those transaction cycles. Criteria: There are four general categories of duties: authorization, custody, record keeping and reconciliation. In an ideal system, different employees perform each of these four major functions. In other words, no one person has control of two or more of these responsibilities. Cause: As a result of the limited number of staff, in the disbursement cycle, the accountant has access to checks, ability to posts to the general ledger, and prepares bank reconciliations. The accountant also has the ability to set up/maintains customers, receives checks, records receipts, posts and approves journal entries, and prepares the bank reconciliation. Lastly, the accountant is the only staff member consistently making journal entries in the fund accounting software and there is no formal process for review. Effect: The existence of this limited segregation of duties increases the risk of fraud. Recommendation: While we recognize the number of staff is not large enough to eliminate this deficiency, we recommend that the JPWB evaluate the current procedures and segregate duties where possible and implement any compensating controls. We are aware some compensating controls are in place; however, it is important that the JPWB Board is aware of this condition and monitor all financial information. Management Response., Management recognizes that it is not economically feasible to correct this finding, however is aware of the deficiency and is relying on oversight by management and the JPWB Board to monitor this deficiency. Compliance As part of obtaining reasonable assurance about whether the JPWB'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 noted no instances of noncompliance or other matters that are required to be reported under Minnesota statutes. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the JPWB are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies were not changed during the year ended December 31, 2024. We noted no transactions entered into by the governmental unit 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. 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 for the financial statements are noted below. AbdoSolurions com A Page 606 • Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. • Management's estimate of its lease receivable is based on the present value of lease payments expected to be received during the lease term. We evaluated the key factors and assumptions used to develop depreciation in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. 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, otherthan 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. We also assisted in preparing a number of yearend accounting entries. These were necessary to adjust the JPWB's records at year end to the appropriate ending balances. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 9, 2025. 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 governmental unit'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. AbdoSoluions.com S Page 66 6 Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management's Discussion and Analysis) is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were not engaged to report on the introductory section, which accompanies the financial statements but is not RSI. We did not audit or perform other procedures on this other information, and we do not express an opinion or provide any assurance on it. 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 Board's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition of our retention. Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future JPWB financial statements: GASB Statement No. 102 — Certain Risk Disclosures Effective: 12/37/2025 GASB Statement No. 103 — Financial Reporting Model Improvements Effective: 1213112026 GASB Statement No. 104— Disclosure of Certain Capital Assets Effective: 72/37/2026 Further information on upcoming GASB pronouncements Restriction on Use This communication is intended solely forthe information and use of the Board of Commissioners, management and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone otherthan these specified parties. The comments and recommendation in this report are purely constructive in nature, and should be read in this context. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service, and for the courtesy and cooperation extended to us by your staff. Abdo Minneapolis, Minnesota April 9, 2025 AbdoSclutians.com Page 606 4—+ } C2CS � Q c L%1 W E (1) c6 s� .,-.4 0 o N Page 68 of 76 cn .F.-4 71 d J cc O y d c c c O .E Q O L O r I WE =o C LL p N U p z Q 0 U 0) c LL N o U) U z L Page 69 of 76 N •r 0 • F U .M O M � m c p 4-j !� U a) U TJ L (D TZ L • 1� fR Vj�� E c L.L Nam: Page 70 of 76 N O N N N m N N N N N N N N N O O O O O O O O y O O O O O O O O O O O O O O O O V! N !A fA m (A N a� L (Q 4F L -O r- L O .L- O O E +� cu Q O . .� U O C6 .0 >, i C C: CO i6 `O a) L :r-: C f6 U O M a) CL ^` C ca V/ O w+ y/ O O M (O cu -^p^`` �cc V C _O ^) CLW E O ^�, W ^` W -' O 3 C U U " to a " a) > a)m C LL �� O H f6 U 7) 4 Page 71 of 76 N O N O O O O V) O O O O O O O O O O O O O O O O O O O O N N N 0 N N N N N N N N si 4 Page 72 of 76 E E Page 73 of 76 OTHER BUSINESS / CORRESPONDENCE Page 74 of 76 / \ JoiNT PowExs WATEP BoAxv vALSERNIU.E. HANOVER. Sr- MICMEL MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: April22,2025 SUBJECT: TMobile Missing Rent Payment Staff was successful in working with TMobile to recoup missing rent payments from 2024 in the amount of $72,590.36. Staff will work with Joint Powers Water Board's Auditor (Abdo) to book the payment against 2024 as intended. This check includes a full payment for 2025. Recommended Motion: • Information only. Page 75 of 76 T • •Mobile T-MoNle US, Inc 12920 SE 38th Street Bellevue, WA 96 1350 PAGE: 1 of 1 DATE: March 28, 2025 CHECK NUMBER: 11407839 AMOUNT PAID: $72,590.36 'lu9u.LLpIrldIP1i.I.Irr�rIIINI.l,hg11h19.1grqr 1 13 51510 C E' Me. - 0M'.'.3' HXNMXXXXXNNN ..'.w00h50. N.V.0 , JOINT POWERS WATER BOARD 11100 SOTH ST NE AL13ERTVILLE MN 55301-7900 Vendor No: 2000141357 G+b I,mM:e Numbm ppyAppon Goss A-11 petluctiens NMMrourR 0311725 A100721139852417 012024101 Terrace Rtl NE Cell $33.971.11 $0.00 $33.971.71 032025 A10013598713705 N202513458 WTH STREET Base c. l $2,949.58 $0.00 $2,949.5B 0311725 A100721139852418 012025101 TemceRtl NE Cell W5,65S67 $0.00 835,669.67 TOTALS $72,590.36 $0.00 $72,590.36 U,q--C�'S%h11� __�LEASEOEfAcaBEEG4EGE2�5mNGCf1ECX T•Mobile' —— CHECK 50-937 — T-Moblle US, Inc NUMBER 11407839 213 12920 SE 38th Street Bellevue, WA 98006-1350 March 28, 2025 VOID AFTER 60 DAYS... PAY JOINT POWERS WATER BOARD TOTHE 1110050TH ST NE j� ORDER OF: ALBERTVILLE, MN 55301-7900 �(',0 CHECKAMOUNT $72,590.36 EXACTLY -- *" 72,590 DOLLARS AND 36 CENTS JPwJPA maCha50 Bank NA. uw V— M Authorized Signature II•L1407839m 402L3093491: 22313023511- Page 76 of 76