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Home My WebLink About2026-07-09 City Council Agenda Packet1.Call to Order / Roll Call 2.Pledge of Allegiance 3.Agenda Approval 4.Presentations a.Hennepin County Commissioner Kevin Anderson b.2025 Audit Update 5.Open Forum - Public Comment Opportunity 6.Consent Agenda a.Approve June 25, 2026 City Council Meeting Minutes b.Financial Claims to July 9, 2026 c.2025 Audit Financial Statements d.Police Department Vehicle Use Policy e.Wayfinding Policy and Sign Designs f.Letter of Support - Hennepin County CSAH 19 and CR 30 Multimodal Safety Improvements g.Heritage Park - Update h.Letter of Support - Hennepin County CSAH 10 and CSAH 92 Mumble Strip Improvements i.Resolution Approving Receipt of Community Safety Grant Award j.Resolution Acknowledging Donation from Hanover Athletic Association k.Public Works Maintenance Worker - Rescind offer and reauthorization to hire 7.Consent Agenda Items Removed for Consideration 8.Planning 9.Unfinished Business a.Civic Campus 10.New Business a.Request for Rental Capacity Exemption - 20020 62nd Place b.Charter and Parks and Trails Commissioner Recommendations 11.Staff Reports 12.Council Reports 13.City Council Schedule a.2026 City Council Schedule 14.Adjournment Corcoran City Council - Regular Session Agenda July 9, 2026 7:00 PM Revised 07/09/2026 *Includes Materials - Materials relating to these agenda items can be found in the Council Chambers Agenda 1 Packet book located by the entrance. The complete Council Agenda Packet is available electronically on the City website at www.corcoranmn.gov. 2 STAFF REPORT Agenda Item: 4.a Council Meeting: July 9, 2026 Prepared By: Deb Johnson, City Clerk Topic: Hennepin County Commissioner Kevin Anderson Action Required: Information Only Council Action 3 STAFF REPORT Agenda Item: 4.b Council Meeting: July 9, 2026 Prepared By: Matt Gsellmeier, Finance Director, Topic: 2025 Audit Update Action Required: Information Only Council Action Information Only Attachments 1. 2025 Audit Presentation - Corcoran.pptx 4 City of Corcoran, Minnesota Presentation of the Audited Financial Statements Fiscal Year Ended December 31, 2025 5 Audit Process andOpinion Unmodified (Clean) Opinion General Procedures Obtain Records Inquiries Analytical Procedures Sampling Detail Testing 6 Required Communications The picture can't be displayed. Audit went very smoothly The picture can't be displayed. Positive Working Relationship with Management & Finance Team The picture can't be displayed.Nothing unusual noted in terms of recorded transactions or accounting policies/treatments The picture can't be displayed.Significant estimates include: - Net Pension Liability and related balances - Net OPEB Liability 7 Internal Controls Over Financial Reporting The picture can't be displayed. AUDIT ADJUSTMENTS The picture can't be displayed. INTERNAL CONTROLS •None of significance •No significant internal control deficiencies identified 8 Minnesota Legal Compliance •Areas Reviewed •Contracting and Bidding •Depositories of Public Funds and Public Investments •Conflicts of Interest •Public Indebtedness •Claims and Disbursements •Miscellaneous Provisions •Findings: •None The picture can't be displayed. 9 Revenues exceeded budgeted amounts by $643,082 Expenditures were under budgeted amounts by $4,589 2024 2025 2025 Budget Revenues 9,890,611$ 11,114,098$ 10,471,016$ Expenditures 10,168,465 10,768,124 10,772,713 Other Sources (Uses)332,746 137,387 301,697 Change in Fund Balance 54,892 483,361 - Fund Balance 4,671,426$ 5,154,787$ $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2022 2023 2024 2025 2025 Budget General Fund - Trend Analysis & Budgetary Comparison Revenues Expenditures Fund Balance 10 Detailed Revenue AnalysisGeneral Fund Taxes & Assessments Licenses and Permits Inter- governmental Charges for Services Investment Income (Loss) Misc. Rev & Fines 2024 7,232,353 1,876,783 484,183 206,827 38,787 51,678 2025 8,053,016 1,979,080 662,667 181,545 113,511 124,279 2025 Final Budget 8,039,335 1,582,000 598,131 185,300 25,000 41,250 $- $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 11 Detailed Expenditure AnalysisGeneral Fund General Government Public Safety Public Works Parks and Recreation Capital Outlay Debt Service 2024 2,920,887 4,377,161 2,430,289 270,252 169,876 - 2025 2,632,629 5,080,681 2,608,407 327,829 106,748 11,830 2025 Final Budget 2,450,785 4,840,771 2,989,285 471,872 20,000 - $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 12 Fund balance policy sets a target fund balance equal to approximately 42% (5 months) of budgeted expenditures for the General Fund. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 2022 2023 2024 2025 Unassigned Fund Balance as a Percentage of the Annual Budget Year Percentage 2022 42.9% 2023 48.9% 2024 45.7% 2025 46.0% 13 Financial Highlights Other Governmental Funds $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Park Capital Fund City Center Drive Fund Revenues Expenditures Fund Balance Park Capital Fund City Center Drive Fund Revenues 1,780,118$ 2,473,962$ Expenditures 3,378,075 397,003 Other Financing Sources (Uses)- 957,740 Change in Fund Balance (1,597,957) 3,034,699 Fund Balance 3,557,997$ 1,255,781$ 14 Cash Trend Analysis Other Governmental Funds ($3,000,000) ($2,000,000) ($1,000,000) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2022 2023 2024 2025 Park Capital Fund City Center Drive Fund 15 Financial Highlights Other Governmental Funds (Continued) $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Debt Service Fund 2025A Bond Equipment Fund Revenues Expenditures Fund Balance Debt Service Fund 2025A Bond Equipment Fund Revenues 1,275,005$ 123,764$ Expenditures 1,378,613 2,330,340 Other Financing Sources (Uses)1,585,611 3,594,390 Change in Fund Balance 1,482,003 1,387,814 Fund Balance 1,775,000$ 1,387,814$ 16 Cash Trend Analysis Other Governmental Funds $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2022 2023 2024 2025 Debt Service 2025A Bond Equipment Fund 17 Financial Highlights Water Enterprise Fund $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2022 2023 2024 2025 Operating Revenues Operating Expenses 2022 2023 2024 2025 Operating Revenues 499,127$ 726,202$ 911,691$ 1,071,042$ Operating Expenses 537,211 571,558 747,548 1,321,071 Operating Income (Loss)(38,084) 154,644 164,143 (250,029) Nonoperating Revenues & Transfers In 1,330,035 2,247,912 5,878,961 4,059,958 Nonoperating Expenses & Transfers Out (305,465) (1,489,303) (1,219,312) (1,503,776) Change In Net Position 986,486$ 913,253$ 4,823,792$ 2,306,153$ 18 Financial Highlights Sewer Enterprise Fund $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2022 2023 2024 2025 Operating Revenues Operating Expenses 2022 2023 2024 2025 Operating Revenues 443,623$ 599,399$ 734,319$ 979,120$ Operating Expenses 448,858 599,012 527,069 1,165,294 Operating Income (Loss)(5,235) 387 207,250 (186,174) Nonoperating Revenues & Transfers In 639,497 966,019 1,168,871 862,891 Nonoperating Expenses & Transfers Out (302,788) (347,699) (344,384) (1,078,137) Change In Net Position 331,474$ 618,707$ 1,031,737$ (401,420)$ 19 Cash Trend AnalysisEnterprise Funds $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 2021 2022 2023 2024 2025 Water Fund Sewer Fund 20 Total Government-Wide AssetsFinancial Highlights 2022 2023 2024 2025 2022 2023 2024 2025 Current Assets $24,943,998 $46,655,085 $33,146,729 $32,511,055 Capital Assets $28,930,343 $42,238,295 $62,529,012 $70,492,753 21 Total Government-Wide LiabilitiesFinancial Highlights 2022 2023 2024 2025 2022 2023 2024 2025 Current Liabilities $6,029,296 $6,095,992 $6,963,082 $5,674,277 Debt/Noncurrent $12,979,875 $38,876,227 $37,134,525 $39,325,187 Net OPEB Liability $350,374 $1,120,608 $1,090,816 $1,391,363 Net Pension Liability $4,719,076 $2,882,256 $2,092,527 $2,061,158 22 Total City Assets vs. LiabilitiesFinancial Highlights $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2022 2023 2024 2025 Total Assets Total Liabilities Net (Assets - Liabilities) 23 Long Term Debt Outstanding GO Bonds – Maturities ranging from 2026 – 2041 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Governmental Activities Future Debt Payments Gov Activities Principal Gov Activities Interest 24 Long Term Debt Outstanding GO Revenue Bonds - Maturities ranging from 2031 – 2053 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 Business-Type Activities Future Debt Payments Bus-Type Activities Principal Bus-Type Activities Interest 25 Questions?Ryan Schmidt, CPA Partner rschmidt@swco.cpa 320-251-0286 26 STAFF REPORT Agenda Item: 6.a Council Meeting: July 9, 2026 Prepared By: Karen Heiden, Deputy Clerk Topic: Approve June 25, 2026 City Council Meeting Minutes Action Required: Approval Summary Approve June 25, 2026 City Council Meeting Minutes Financial/Budget N/A Recommendation Approve June 25, 2026 City Council Meeting Minutes Council Action Approve June 25, 2026 City Council Meeting Minutes Attachments 1. 2026-06-25 DRAFT Council Minutes.docx 27 City of Corcoran City Council Minutes June 25, 2026, 7pm 1 The Corcoran City Council met on June 25, 2026, in Corcoran, Minnesota. The City Council meeting was held in person and the public was present in person. The meeting was also available to view online through electronic means using live streaming service through Granicus. Mayor McKee, Councilors Friedrich, Lanterman, Nichols, and Vehrenkamp were present. Also present: City Administrator Tobin, Assistant City Administrator Williams, City Clerk Johnson, Deputy Clerk Heiden, Planner Klingbeil, Public Safety Director Gottschalk, and City Attorney Thames. 1. Call to Order / Roll Call Mayor McKee called the meeting to order at 7:00 pm. 2. Pledge of Allegiance Mayor McKee invited all in attendance to rise and join in the Pledge of Allegiance. 3. Agenda Approval Mayor McKee stated that Item 11b Closed Session was removed. MOTION: made by Nichols, seconded by Lanterman to approve the agenda as amended. Voting Aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries: 5:0) 4. Presentations a. Josh Lawson – Five Year Award b. Officers Lawson and Hoffman – Contributions to Community c. Civic Campus Video 5. Open Forum Mayor McKee invited residents to come forward to address the Council during Open Forum for any items not included on the agenda. City Administrator Tobin explained the instructions to participate in the public comment opportunity. 6. Consent Agenda a. City Council Meeting Minutes Approval Action – Approved June 03, 2026 Special City Council Meeting Minutes, June 11, 2026 City Council Meeting Minutes, and June 12, 2026 Special Work Session City Council Meeting Minutes. b. Financial Claims Action – Approved Financial Claims for June 25, 2026. c. Resolution 2026-47 Appointment of Public Works Positions Action - Adopted Resolution 2026-47 Approving the Appointment of Public Works Positions for the City of Corcoran, Minnesota. d. Appointment of Election Judges – 2026 Elections Action – Adopted Resolution 2026-49 Approving the Appointment of Election Judges for the 2026 Election Cycle. e. Law Enforcement Labor Services (LELS) Local 615 Funeral Leave Alignment Memorandum of Agreement Action – Approved the Memorandum of Agreement and directed the Mayor and City Administrator to enter the agreement. f. Designation of Electronic Records as the Official Record Copy of the City of Corcoran Action – Adopted Resolution 2026-50 Approving Designating Electronic Records as the Official Record Copy of the City of Corcoran. 28 City of Corcoran City Council Minutes June 25, 2026, 7pm 2 g. CenterPoint Energy Community Safety Grant Action – Approved to Accept the grant from CenterPoint Energy to be used for the purchase of carbon monoxide detectors for new patrol units. h. Waiver Request for Amplified Sound – Hamel Rodeo July 9th-12th, 2026 Action- Approved to authorize a waiver for amplified sound until 12:00 A.M. on Thursday, July 9, 2026, Friday, July 10, 2026, Saturday, July 11, 2026, and Sunday, July 12, 2026. i. Waiver Request for Amplified Sound – 2026 Corcoran Country Daze Action – Approved to authorize a waiver for amplified sound until 12:00 A.M. On Friday, August 14, 2026, and Saturday, August 15, 2026. j. 2026 ALPR Audit Action – Informational Only. k. Ravinia 13th Addition – Acceptance of Public Improvements Action – Approved a conditional acceptance of public improvements for Ravinia 13th Addition. l. NE Water Supply Test Well 3 – Pay Request 1 Action – Approved Pay Request 1 for the NE water supply test well 3 to Traut Companies in the amount of $59,455.75. m. Heritage Park Improvements – Pay Request 8 (Sitework) Action – Approved Pay Request 8 for the Heritage Park Improvements to Fehn Companies, Inc. in the amount of $104,497.63. n. Heritage Park Remaster – Change Order #18 Action – Informational Only. o. Charitable Gambling Permit – Ride-On 4 Carrie, Inc. Action – Adopted Resolution 2026-51 Approving Charitable Gambling Permit for event to Ride-On for Carrie, Inc. effective September 12, 2026. p. Resolution 2026-52 Appointment of a Part-Time Police Officer Action – Adopted Resolution 2026-52 Approving the Appointment of a Part-Time Police Officer. MOTION: made by Nichols, seconded by Friedrich to approve consent agenda items 6a -6p Voting Aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries: 5:0) 7. Consent Agenda Items Removed for Consideration 8. Planning a. Sketch Plan for “Oswald Business Park” at 19510 County Road 30 (PID 12-119-23-23- 0001) (City File No. 26-013) Planner Klingbeil gave staff report to council. Brandon Champeau, Hempel Development LLC., applicant, addressed the council. Council discussed. John Fortin, 10001 Jack Pine Lane, Corcoran, addressed the council with some concerns with the development concept plan. Kevin Pumarlo, 10009 Jack Pine Lane, Corcoran, addressed the council with some concerns with the development concept plan. Jason Bartels, 19795 Hunters Ridge, Corcoran, addressed the council with concerns with the development concept plan. Brian Lother, Hope Community Church, addressed the council in favor of the concept plan. Josh McKinny, Measure Group, addressed the council with questions they had. 29 City of Corcoran City Council Minutes June 25, 2026, 7pm 3 Council provided feedback to applicants. Mayor McKee called a brief recess at 8:55 pm. Mayor McKee called the meeting back to order at 9:00 pm. 9. Unfinished Business a. Longevity Pay Policy Assistant City Administrator Williams gave staff report to council. Council discussed and gave feedback. Council directed staff to come back with revised longevity pay policy that includes choosing items from updated awards catalog and monetary pay. b. Civic Campus Discussion City Administrator Tobin gave report to council. Council discussed and gave feedback. Council directed staff to come back with additional engagement. Nicole Sanders, 8026 Walnut Lane, Corcoran, addressed the council with concerns with Civic Campus. Glen Krause, 19908 Abilene Lane, Corcoran, addressed the council with concerns with Civic Campus. 10. New Business a. Public Hearing – Amendment to 2026 Fee Schedule Mayor McKee opened public hearing for Amendment to 2026 Fee Schedule. Mayor McKee made motion to close public hearing MOTION: made by Lanterman, seconded by Nichols to close the public hearing. Voting aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries 5:0) Public Works Director Mattson gave staff report to council. MOTION: made by Nichols, seconded by Friedrich to adopt Ordinance Number 2026-561 approving the amendment to 2026 fee schedule. Voting aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries 5:0) MOTION: made by Friedrich, seconded by Nichols to adopt the Summary of Ordinance Number 2026-562 approving the amendment to 2026 fee schedule. Voting aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries 5:0) The council meeting was adjourned to go into a closed session at 10:24 pm. 11. Closed Session a. Closed Session Pursuant to Minn. Stat. 13D.05 subd. 3(b) Attorney-Client Privilege – Discuss Open Litigation with Maple Hill MHP, LLC and GBH Property, LLC Mayor McKee called the council meeting back to order at 10:30 pm. Mayor McKee made a motion to authorize Mayor and City Clerk to execute the reviewed settlement with Maple Hill MHP, LLC and GBH Property, LLC on behalf of City of Corcoran subject to any final revisions made by city attorney. MOTION: made by Lanterman, seconded by Nichols to authorize Mayor and City Clerk to execute the reviewed settlement with Maple Hill MHP, LLC and GBH Property, LLC on behalf of City of Corcoran subject to any final revisions made by city attorney. Voting aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries 5:0) 30 City of Corcoran City Council Minutes June 25, 2026, 7pm 4 12. Staff Reports City Administrator reported on: Pints for the Past for Corcoran in September. Ribbon Cutting for the park July 23rd 13. Council Reports Councilor Vehrenkamp reported: Lions need volunteers 14. City Council Schedule a. 2026 City Council Schedule 15. Adjournment MOTION: made by McKee, seconded by Nichols to adjourn. Voting Aye: McKee, Friedrich, Lanterman, Nichols, and Vehrenkamp. (Motion carries 5:0) Mayor McKee adjourned the meeting at 10:33 p.m. June 25, 2026. Respectfully submitted, _____________________________________ Karen Heiden – Deputy Clerk 31 STAFF REPORT Agenda Item: 6.b Council Meeting: July 9, 2026 Prepared By: Reed Kottke, Accountant Topic: Financial Claims to July 9, 2026 Action Required: Approval Summary Claims require Council review and approval, those permitted per policy have been completed, while others are pending Council approval. Financial/Budget Claims are within budget or are identified on a case-by-case basis to confirm funding and seek Council approval as necessary. Options Approve claims as presented or amend and approve claims. Recommendation Approve claims as presented. Council Action Approve claims as presented. Attachments 1. 20260709 council.pdf 32 Agenda Item:CLAIMS APPROVED AND PROCESSED Council Meeting: Financial Claims: Check Range:39422 - 39448 Check Register 77,434.33$ 77,434.33$ Financial Claims: Check Range:39449 - 39479 159,910.74$ 159,910.74$ Check Register Total Expenditures Approved 6b 7/9/2026 6/25/2026 Total Expenditures Approved 7/1/2026 33 Agenda Item:CLAIMS PENDING COUNCIL APPROVAL Council Meeting: Financial Claims: Check Range:39480 - 39483 Check Register 1,164,928.38$ Electronic Funds Transfer 254,818.56$ 1,419,746.94$ Date Amount Description 6/22/2026 154.52 MAY PETROLEUM TAX RETURN 6/22/2026 501.50 PP12 PROCESSING FEE 6/22/2026 39,660.44 PP12 PENSION CONTRIBUTIONS 6/23/2026 216.00 FLEXIBLE SPENDING ACCOUNT FUNDING REQUIREMENT 6/24/2026 25.00 STOP PAYMENT FEE 6/25/2026 140,943.88 PP13 NET PAY 6/25/2026 55,085.54 PP13 TAX WITHHOLDING 6/25/2026 316.20 BLANK CHECK STOCK 6/26/2026 271.70 WFN HCM SUITE 6/29/2026 6,715.15 PP13 HEALTH SAVINGS ACCOUNT CONTRIBUTIONS 6/30/2026 MINNESOTA STATE RETIREMENT SYSTEM 5,054.28 PP13 DEFERRED COMPENSATION CONTRIBUTIONS 6/30/2026 MINNESOTA STATE RETIREMENT SYSTEM 5,874.35 PP13 HEALTH CARE SAVINGS PLAN CONTRIBUTIONS FARMERS STATE BANK OF HAMEL ADP WAGE PAY ADP TAX FARMERS STATE BANK OF HAMEL ADP PAYROLL FEES OPTUM BANK Vendor MINNESOTA DEPARTMENT OF REVENUE ADP PAYROLL FEES OPTUM CLAIM MN PERA 6b 7/9/2026 7/9/2026 Total Expenditures Approved Electronic Funds Transfer 34 BANK CODE: GEN CHECK DATE: 06/25/2026 INVOICE PAY DATE FROM 06/25/2026 TO 06/25/2026 06/25/2026 10:58 AM User: RCKOTTKE DB: Corcoran Page: 1/1CHECK PROOF FOR CITY OF CORCORAN # InvoicesTotal AmountCredit TotalInvoice TotalVendor NameVendor CodeCheck #BankCheck Date Type: CheckStub 2##0.00 592.99 592.99 METRO SALES INC224533(S)GEN06/25/2026 Type: Paper Check 11,286.28 0.00 1,286.28 BEAUDRY OIL COMPANY62239422GEN06/25/2026 14,058.00 0.00 4,058.00 BKV GROUP323639423GEN06/25/2026 13,962.50 0.00 3,962.50 CEMSTONE PRODUCTS COMPANY313639424GEN06/25/2026 4325.49 0.00 325.49 CINTAS - 4705639425GEN06/25/2026 266,187.73 0.00 6,187.73 CITY OF CORCORAN281339426GEN06/25/2026 6##17,869.80 2,605.00 20,474.80 COMPUTER INTEGRATION TECH242739427GEN06/25/2026 1145.00 0.00 145.00 EVERGREEN RECYCLING LLC319039428GEN06/25/2026 6##706.16 38.65 744.81 FACTORY MOTOR PARTS320739429GEN06/25/2026 1215.26 0.00 215.26 GRAINGER17039430GEN06/25/2026 12,000.00 0.00 2,000.00 GRASSLAND SOLUTIONS326439431GEN06/25/2026 1190.52 0.00 190.52 HACH COMPANY321439432GEN06/25/2026 16,282.70 0.00 6,282.70 HKGI312239433GEN06/25/2026 52,803.50 0.00 2,803.50 LANDFORM PROFESSIONAL SERVICES21139434GEN06/25/2026 1140.00 0.00 140.00 MARIE RIDGEWAY LICSW, LLC256139435GEN06/25/2026 3809.37 0.00 809.37 MENARDS MAPLE GROVE16739436GEN06/25/2026 181.25 0.00 81.25 MILLER CHEVROLET20339437GEN06/25/2026 110,050.00 0.00 10,050.00 MUNICIPAL BUILDERS INC328539438GEN06/25/2026 175.40 0.00 75.40 NALISHA WILLIAMS317139439GEN06/25/2026 1152.94 0.00 152.94 NORTH AMERICAN SAFETY INC320139440GEN06/25/2026 111,511.66 0.00 11,511.66 OERTEL ARCHITECTS192739441GEN06/25/2026 11,725.81 0.00 1,725.81 PIONEER MANUFACTURING COMPANY265539442GEN06/25/2026 12,352.00 0.00 2,352.00 SANDI'S SCREEN PRINTING247239443GEN06/25/2026 1254.80 0.00 254.80 STANTEC CONSULTING SERVICES170839444GEN06/25/2026 1759.50 0.00 759.50 SUPERIOR BACKGROUND INVESTIGATIONS282839445GEN06/25/2026 12,527.16 0.00 2,527.16 TRANSWEST TRUCKS323339446GEN06/25/2026 1947.50 0.00 947.50 WARNING LITES OF MINNESOTA, INC.301939447GEN06/25/2026 114.00 0.00 14.00 WESTSIDE WHOLESALE TIRE15639448GEN06/25/2026 ## Denotes that check has vendor credit applied. Num Stubs: 1Num Checks: 27 Num Invoices: 73 Total Amount: 77,434.33 35 BANK CODE: GEN CHECK DATE: 07/01/2026 INVOICE PAY DATE FROM 07/01/2026 TO 07/01/2026 06/30/2026 02:04 PM User: RCKOTTKE DB: Corcoran Page: 1/1CHECK PROOF FOR CITY OF CORCORAN # InvoicesTotal AmountCredit TotalInvoice TotalVendor NameVendor CodeCheck #BankCheck Date 3##299.88 50.00 349.88 ACME TOOLS156039449GEN07/01/2026 1116.77 0.00 116.77 AMAZON CAPITAL SERVICES227039450GEN07/01/2026 23,405.70 0.00 3,405.70 BEAUDRY OIL COMPANY62239451GEN07/01/2026 4304.31 0.00 304.31 CINTAS - 4705639452GEN07/01/2026 159.29 0.00 59.29 CITY OF CORCORAN281339453GEN07/01/2026 1100.00 0.00 100.00 ECM PUBLISHERS INC201139454GEN07/01/2026 16,637.58 0.00 6,637.58 ENVIROTECH SERVICES315439455GEN07/01/2026 339,850.00 0.00 39,850.00 FARM-RITE EQUIPMENT INC.230339456GEN07/01/2026 29,022.60 0.00 9,022.60 FERGUSON WATERWORKS #2518190439457GEN07/01/2026 1169.31 0.00 169.31 GREAT AMERICA FINANCIAL SERVICES322439458GEN07/01/2026 13,170.00 0.00 3,170.00 GUARDIAN FLEET SAFETY293639459GEN07/01/2026 19,000.00 0.00 9,000.00 Hanson BuildersREFUNDBD39460GEN07/01/2026 1934.00 0.00 934.00 HAUGO GEOTECHNICAL SERVICES LL196939461GEN07/01/2026 11,043.21 0.00 1,043.21 HAWKINS INC323139462GEN07/01/2026 1163.50 0.00 163.50 KENTCO SIGNS24439463GEN07/01/2026 134,345.00 0.00 4,345.00 LANDFORM PROFESSIONAL SERVICES21139464GEN07/01/2026 158.11 0.00 58.11 LENNAR HOMESREFUNDUB39465GEN07/01/2026 161.85 0.00 61.85 LENNAR HOMES OF MNREFUNDUB39466GEN07/01/2026 156.49 0.00 56.49 LENNAR HOMES OF MNREFUNDUB39467GEN07/01/2026 21,911.79 0.00 1,911.79 LIGHTNING PRINTING INC325139468GEN07/01/2026 2345.29 0.00 345.29 MENARDS MAPLE GROVE16739469GEN07/01/2026 1128.49 0.00 128.49 NAPA AUTO PARTS - Corcoran12639470GEN07/01/2026 1309.17 0.00 309.17 QUALITY FORKLIFT SALES & SERVICE 306839471GEN07/01/2026 12,622.55 0.00 2,622.55 SECURIAN LIFE INSURANCE COMPANY326339472GEN07/01/2026 4367,029.42 0.00 67,029.42 STANTEC CONSULTING SERVICES170839473GEN07/01/2026 11,174.64 0.00 1,174.64 THE HARTFORD304339474GEN07/01/2026 24,900.00 0.00 4,900.00 THE MULCH FACTORY315839475GEN07/01/2026 1860.00 0.00 860.00 ULTIMATE CLEANERS LLC266339476GEN07/01/2026 1227.46 0.00 227.46 US BANKCORP EQUIPMENT FINANCE186039477GEN07/01/2026 11,360.38 0.00 1,360.38 VEIT DISPOSAL SYSTEMS28839478GEN07/01/2026 1243.95 0.00 243.95 ZEP SALES & SERVICE17639479GEN07/01/2026 ## Denotes that check has vendor credit applied. Num Stubs: 0Num Checks: 31 Num Invoices: 97 Total Amount: 159,910.74 36 BANK CODE: GEN CHECK DATE: 07/09/2026 INVOICE PAY DATE FROM 07/09/2026 TO 07/09/2026 06/30/2026 02:24 PM User: RCKOTTKE DB: Corcoran Page: 1/1CHECK PROOF FOR CITY OF CORCORAN # InvoicesTotal AmountCredit TotalInvoice TotalVendor NameVendor CodeCheck #BankCheck Date 8691,251.26 0.00 691,251.26 FIRST NATIONAL BANK OF OMAHA322139480GEN07/09/2026 1141,335.74 0.00 141,335.74 ENVIROTECH SERVICES315439481GEN07/09/2026 1292,460.38 0.00 292,460.38 CITY OF MEDINA5939482GEN07/09/2026 139,881.00 0.00 39,881.00 QUALITY FORKLIFT SALES & SERVICE 306839483GEN07/09/2026 Num Stubs: 0Num Checks: 4 Num Invoices: 11 Total Amount: 1,164,928.38 37 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 1/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39422 394221,286.28 06/25/263323054ULS #2 DYED KODIAK B20BEAUDRY OIL COMPANY06/16/26100-43100-50212 1,286.28 Total For Check 39422 Check 39423 394234,058.00 06/25/2668586FACILITIES STUDY THROUGH 20260615 2747.01BBKV GROUP06/15/26435-41400-50300 4,058.00 Total For Check 39423 Check 39424 394243,962.50 06/25/268114521AIR ENTRAINMENT 4500, 3/4 AG, AECEMSTONE PRODUCTS COMPANY06/01/26100-45200-50210 3,962.50 Total For Check 39424 Check 39425 3942522.38 06/25/264272861770BLACK MATS-CITY HALLCINTAS - 47006/17/26100-41900-50400 3942555.73 06/25/264272861794SUPPLIES-PWOPCINTAS - 47006/17/26100-43100-50400 39425216.97 06/25/264272861885UNIFORMS-PUBLIC WORKSCINTAS - 47006/17/26100-43100-50417 3942515.21 06/25/264272861788UNIFORMS/SUPPLIES-UTCINTAS - 47006/17/26601-49400-50417 3942515.20 06/25/264272861788UNIFORMS/SUPPLIES-UTCINTAS - 47006/17/26602-49450-50417 325.49 Total For Check 39425 Check 39426 3942690.00 06/25/26BENG25-0014MAR26CK REQ PWD FAIRWAY SHORES JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942645.00 06/25/26BENG25-0007MAR26CK REQ PWD HEATHER MEADOWS 3RD JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942690.00 06/25/26BP26-0008MAR26CK REQ PWD KARINIEMI ORCHARDS JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426135.00 06/25/26BP25-0049MAR26CK REQ PWD LANO JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426225.00 06/25/26BENG26-0001MAR26CK REQ PWD AMIRA JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426540.00 06/25/26BENG25-0010MAR26CK REQ PWD BROCKTON BP JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942690.00 06/25/26BP24-0032MAR26CK REQ PWD CAMP SOLBERG JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942645.00 06/25/26BP26-0013MAR26CK REQ PWD LOST LOON JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942645.00 06/25/26BP26-0001MAR26CK REQ PWD MJ VINEYARD JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942645.00 06/25/26BP25-0050MAR26CK REQ PWD PARK PLACE STORAGE JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942645.00 06/25/26BP25-0041MAR26CK REQ PWD PHILS AUTO JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426180.00 06/25/26BP24-0012MAR26CK REQ PWD RED BARN JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 3942690.00 06/25/26BP25-0038MAR26CK REQ PWD RUSH CREEK GOLF COURSE JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426360.00 06/25/26BP26-0009MAR26CK REQ PWD SPRINGS OF CORCORAN JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426315.00 06/25/26BP26-0002MAR26CK REQ PWD ST THERESE JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426135.00 06/25/26BP25-0017MAR26CK REQ PWD ST THOMAS JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426450.00 06/25/26BENG26-0003MAR26CK REQ PWD SUITE LIVING JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426450.00 06/25/26BENG25-0003MAR26CK REQ PWD WOODLAND HILLS FINAL PLAT JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 39426315.00 06/25/26BP23-0028MAR26CK REQ PWD CORCORAN STORAGE II JAN26-MAR26CITY OF CORCORAN06/15/26100-00000-22205 394261,175.51 06/25/2620260611-48200 CO RD 116 UTILITY BILLING THROUGH 05/31/2026CITY OF CORCORAN06/11/26100-41900-50382 39426328.71 06/25/2620260611-16604 WILDFLOWER TRL UTILITY BILLING THROUGH 05/31/26CITY OF CORCORAN06/11/26100-45200-50382 39426155.51 06/25/2620260611-26620 CO RD 116 UTILITY BILLING THROUGH 05/31/2026CITY OF CORCORAN06/11/26100-45200-50382 39426155.25 06/25/2620260611-38055 CITY CENTER DR IRRIGATION UTILITY BILLING THROUGH 05/31/2026CITY OF CORCORAN06/11/26100-45200-50382 39426166.71 06/25/2620260611-720200 CO RD 50 UTILITY BILLING THROUGH 05/31/2026CITY OF CORCORAN06/11/26100-45200-50382 39426175.62 06/25/2620260611-510120 CO RD 116 ACCT X6000 UTILITY BILLING THROUGH 05/31/2026CITY OF CORCORAN06/11/26601-49400-50380 3942682.40 06/25/2620260611-610120 CO RD 116 IRR ACCT X6001 UTILITY BILLIING THROUGH 05/31/2026CITY OF CORCORAN06/11/26601-49400-50380 39426175.62 06/25/2620260611-510120 CO RD 116 ACCT X6000 UTILITY BILLING THROUGH 05/31/2026CITY OF CORCORAN06/11/26602-49450-50380 3942682.40 06/25/2620260611-610120 CO RD 116 IRR ACCT X6001 UTILITY BILLIING THROUGH 05/31/2026CITY OF CORCORAN06/11/26602-49450-50380 6,187.73 Total For Check 39426 Check 39427 394274,655.95 06/25/26517608HERITAGE PARK NETWORK SETUPCOMPUTER INTEGRATION TECH06/19/26415-45200-50530 394271,071.86 06/25/26517729HERITAGE PARK NETWORK SETUPCOMPUTER INTEGRATION TECH06/22/26415-45200-50530 394272,860.67 06/25/26517728HARDWARE & SUPPORT FOR ARUBA GEARCOMPUTER INTEGRATION TECH06/22/26435-41400-50580 38 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 2/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39427 394278,913.32 06/25/26517113HARDWARE & SUPPORT FOR ARUBA GEARCOMPUTER INTEGRATION TECH06/15/26435-41400-50580 394272,973.00 06/25/26517503ARUBA 3Y FC NBD EXCH X 7COMPUTER INTEGRATION TECH06/17/26435-41400-50580 39427(2,605.00)06/25/26CM331827CREDIT FOR ORIGINAL INVOICE 514674, TOWER INSTALLCOMPUTER INTEGRATION TECH06/19/26601-49400-50401 17,869.80 Total For Check 39427 Check 39428 39428145.00 06/25/264121RECYCLE MATTRESS X 5, BOX SPRING X 1EVERGREEN RECYCLING LLC06/18/26100-43100-50225 145.00 Total For Check 39428 Check 39429 3942934.61 06/25/26128-241334PARTS FOR POLICE SQUAD 573FACTORY MOTOR PARTS06/17/26100-42100-50220 3942940.76 06/25/26128-241339PARTS FOR POLICE SQUAD 572FACTORY MOTOR PARTS06/17/26100-42100-50220 39429(38.65)06/25/26128-241553CREDIT FOR RETURN PARTS FOR POLICE TAHOEFACTORY MOTOR PARTS06/19/26100-42100-50220 39429106.04 06/25/26262-001703POLICE SEMI-MET PADS - SQUAD 572FACTORY MOTOR PARTS06/04/26100-42100-50220 39429301.80 06/25/26128-241331PARTS-DEL48GH4A X 2FACTORY MOTOR PARTS06/17/26100-43100-50220 39429261.60 06/25/261-11767503FRN 12R134 12OZ CAN X 24 FOR PUBLIC WORKSFACTORY MOTOR PARTS05/29/26100-43100-50220 706.16 Total For Check 39429 Check 39430 39430215.26 06/25/269955771861PAPER TOWEL ROLLS X 2 FOR CITY HALLGRAINGER06/17/26100-41900-50221 215.26 Total For Check 39430 Check 39431 394312,000.00 06/25/26425192-2FINAL BALANCE DUE FOR PD FENCE/GATEGRASSLAND SOLUTIONS12/31/25401-41900-50300 2,000.00 Total For Check 39431 Check 39432 39432190.52 06/25/2615044264REF: 3218301007-1 ASSY PACK CHEMKEY X 3HACH COMPANY06/15/26601-49400-50210 190.52 Total For Check 39432 Check 39433 394336,282.70 06/25/26023-058-29CITY PARK PLANNING & DESIGN MAY 2026HKGI06/13/26415-45200-50300 6,282.70 Total For Check 39433 Check 39434 3943444.50 06/25/2637975TAVERA 2ND ADD FP & FPUD 21-036 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205-056 3943444.50 06/25/2637976TAVERA 4TH FPUD & FP 22-028 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205-056 39434133.50 06/25/2637977TAVERA 6TH FPUD & FP CITY FILE 23-033 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205-056 3943444.50 06/25/2637974RAVINIA 5TH ADDITION FINAL PUD/PLAT 16-015 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205-061 394342,536.50 06/25/2637991CITY BUSINESS 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-41910-50300 2,803.50 Total For Check 39434 Check 39435 39435140.00 06/25/263604MANDATORY CHECK-IN X 1 DOS 04/01/2026MARIE RIDGEWAY LICSW, LLC04/30/26100-41900-50300 140.00 Total For Check 39435 Check 39436 39436581.55 06/25/2664832STEEL RACKING BEAMS, DELIVERY, PARTS FOR POLICE DEPTMENARDS MAPLE GROVE05/06/26100-42100-50223 3943614.99 06/25/266689772" STEEL RACKING BEAM FOR POLICE DEPTMENARDS MAPLE GROVE06/22/26100-42100-50223 39436212.83 06/25/2666746PARTS/SUPPLIES FOR PUBLIC WORKSMENARDS MAPLE GROVE06/18/26100-45200-50210 809.37 Total For Check 39436 Check 39437 3943781.25 06/25/26CVW192403MOLDING 8.132 X 1MILLER CHEVROLET05/26/26100-43100-50220 39 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 3/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39437 81.25 Total For Check 39437 Check 39438 3943810,050.00 06/25/26552-7008WTP HATCH MODIFICATIONSMUNICIPAL BUILDERS INC06/09/26601-49400-50401 10,050.00 Total For Check 39438 Check 39439 3943934.80 06/25/2620260623JUNE 2026 MILEAGE REIMBURSEMENT NALISHA WILLIAMS06/23/26100-41400-50331 3943940.60 06/25/2620260623JUNE 2026 MILEAGE REIMBURSEMENT NALISHA WILLIAMS06/23/26100-41800-50331 75.40 Total For Check 39439 Check 39440 39440152.94 06/25/26IN991114KIT, M-FAK RESUPPLY - BASIC X 3 FOR UASI GRANTNORTH AMERICAN SAFETY INC06/18/26100-42100-50430 152.94 Total For Check 39440 Check 39441 3944111,511.66 06/25/2624-26.15CORCORAN COMMUNITY PARK INVOICE 15OERTEL ARCHITECTS06/17/26415-45200-50300 11,511.66 Total For Check 39441 Check 39442 394421,725.81 06/25/26INV-300856BRITE STRIPE WHITE 5 GAL QTY 22 ON SO-296943PIONEER MANUFACTURING COMPANY06/19/26100-45100-50210 1,725.81 Total For Check 39442 Check 39443 394432,352.00 06/25/2620260615YOUTH SOCCER SHIRTS 2026SANDI'S SCREEN PRINTING06/15/26100-45100-50210 2,352.00 Total For Check 39443 Check 39444 39444254.80 06/25/262578094RUSH CREEK BECHTOLD STABILIZATION 7690 20260430STANTEC CONSULTING SERVICES06/18/26603-43150-50300 254.80 Total For Check 39444 Check 39445 39445759.50 06/25/2620260531BACKGROUND INVESTIGATION SERVICES 05/07/26 - 05/26/26SUPERIOR BACKGROUND INVESTIGATIONS06/01/26100-42100-50300 759.50 Total For Check 39445 Check 39446 394462,527.16 06/25/26093P55500ORDER 55500 SPRING ASSY & PARTSTRANSWEST TRUCKS06/18/26100-43100-50220 2,527.16 Total For Check 39446 Check 39447 39447947.50 06/25/2626-2541TRAFFIC CONES X 50 FOR POLICE DEPTWARNING LITES OF MINNESOTA, INC.06/08/26201-42100-50210 947.50 Total For Check 39447 Check 39448 3944814.00 06/25/26985792DISPOSAL OF TIRESWESTSIDE WHOLESALE TIRE06/18/26100-43100-50225 14.00 Total For Check 39448 Check 39449 39449230.00 07/01/2616543377ORDER 27699720-000 SHOP PARTSACME TOOLS06/24/26100-45200-50210 39449119.88 07/01/2616545647ORDER 27697772-000 SHOP PARTSACME TOOLS06/24/26100-45200-50210 349.88 Total For Check 39449 Check 39450 39450116.77 07/01/2614C9-1GMQ-61KNMISC SUPPLIES FOR POLICE DEPTAMAZON CAPITAL SERVICES06/23/26100-42100-50210 116.77 Total For Check 39450 40 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 4/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39451 3945121.79 07/01/263323881UNLEADED 87 - 10% ETHANOLBEAUDRY OIL COMPANY06/19/26100-41900-50212 394511,764.60 07/01/263323881UNLEADED 87 - 10% ETHANOLBEAUDRY OIL COMPANY06/19/26100-42100-50212 394511,227.18 07/01/263323880ULS #2 DYED KODIAK B20BEAUDRY OIL COMPANY06/19/26100-43100-50212 3945143.57 07/01/263323881UNLEADED 87 - 10% ETHANOLBEAUDRY OIL COMPANY06/19/26100-43100-50212 39451174.28 07/01/263323881UNLEADED 87 - 10% ETHANOLBEAUDRY OIL COMPANY06/19/26601-49400-50212 39451174.28 07/01/263323881UNLEADED 87 - 10% ETHANOLBEAUDRY OIL COMPANY06/19/26602-49450-50212 3,405.70 Total For Check 39451 Check 39452 3945222.38 07/01/264273599041BLACK MATS-CITY HALLCINTAS - 47006/24/26100-41900-50400 3945234.55 07/01/264273599105SUPPLIES-PWOPCINTAS - 47006/24/26100-43100-50400 39452216.97 07/01/264273599099UNIFORMS-PUBLIC WORKSCINTAS - 47006/24/26100-43100-50417 3945215.21 07/01/264273599089UNIFORMS/SUPPLIES-UTCINTAS - 47006/24/26601-49400-50417 3945215.20 07/01/264273599089UNIFORMS/SUPPLIES-UTCINTAS - 47006/24/26602-49450-50417 304.31 Total For Check 39452 Check 39453 3945359.29 07/01/2620260611-820200 CO RD 50 IRR UTILITY BILLING 05/06/26 - 06/02/26CITY OF CORCORAN06/11/26100-45200-50382 59.29 Total For Check 39453 Check 39454 39454100.00 07/01/261103727AD 1542456 JULY 7 PH SITE PLAN, IUP & VARIECM PUBLISHERS INC06/18/26100-41900-50350 100.00 Total For Check 39454 Check 39455 394556,637.58 07/01/26CD202616678CALCIUM CHLORIDE 38%ENVIROTECH SERVICES06/26/26100-43122-50400 6,637.58 Total For Check 39455 Check 39456 3945613,000.00 07/01/26E168302026 BOBCAT T66 T4 COMPACT TRACT LOADERFARM-RITE EQUIPMENT INC.05/21/26100-45200-50221 394569,900.00 07/01/26E169352026 BRANCH MANAGER T601OF-DLR 58" HARDBOX ROTATING GRAPFARM-RITE EQUIPMENT INC.06/18/26435-43100-50580 3945616,950.00 07/01/26E169362026 BRANCH MANAGER CMP ATTACHMENTS LLC HG112 HYDRA GRAPPLE KUBOTFARM-RITE EQUIPMENT INC.06/18/26435-43100-50580 39,850.00 Total For Check 39456 Check 39457 394573,400.00 07/01/260568105R900 V4 WALL MIU X 20FERGUSON WATERWORKS #251806/26/26601-49400-50227 394575,622.60 07/01/2605682731-1/2 MACH10 R900I USG 13 LL *X AND LF BRZ 1-1/2 MTR FLG KIT PR, QTY 4FERGUSON WATERWORKS #251806/26/26601-49400-50227 9,022.60 Total For Check 39457 Check 39458 3945816.93 07/01/2642377185AGREEMENT 012-3143929-000 FOLDER INSERTER GREAT AMERICA FINANCIAL SERVICES06/29/26100-41900-50413 3945876.19 07/01/2642377185AGREEMENT 012-3143929-000 FOLDER INSERTER GREAT AMERICA FINANCIAL SERVICES06/29/26601-49400-50413 3945876.19 07/01/2642377185AGREEMENT 012-3143929-000 FOLDER INSERTER GREAT AMERICA FINANCIAL SERVICES06/29/26602-49450-50413 169.31 Total For Check 39458 Check 39459 394593,170.00 07/01/26305307REPLACED BAD FLIR ON SQUAD 587GUARDIAN FLEET SAFETY06/25/26100-42100-50430 3,170.00 Total For Check 39459 Check 39460 394609,000.00 07/01/26CE0014PERMIT REFUND 6310 POPLAR LNHanson Builders06/30/26100-00000-22206 9,000.00 Total For Check 39460 Check 39461 39461934.00 07/01/261632725-0562 CORCORAN CITY PARK IMPRTHAUGO GEOTECHNICAL SERVICES LL06/29/26415-45200-50300 41 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 5/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39461 934.00 Total For Check 39461 Check 39462 394621,043.21 07/01/267472455SO5197646 CHLORINE CYLINDERSHAWKINS INC06/25/26601-49400-50216 1,043.21 Total For Check 39462 Check 39463 3946381.75 07/01/2628012VARIOUS DECALSKENTCO SIGNS05/04/26601-49400-50403 3946381.75 07/01/2628012VARIOUS DECALSKENTCO SIGNS05/04/26602-49450-50403 163.50 Total For Check 39463 Check 39464 3946489.00 07/01/2637978RED BARN FP AND VARIANCE (CITY FILE 24-007) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 3946436.25 07/01/2637980WOODLAND HILLS FP (CITY FILE 24-023) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 39464623.00 07/01/2637981ST THOMAS SITE PLAN (CITY FILE 24-045) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 39464222.50 07/01/2637982BROCKTON BP FP (CITY FILE 25-019) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 3946444.50 07/01/2637983PHIL'S AUTO SP AND VAR (CITY FILE 25-030) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 394641,095.25 07/01/2637984ST. THERESE - PHASE II SPA (25-043) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 39464578.50 07/01/2637985SPRINGS AT CORCORAN RZ PUD AND PP (CITY FILE 26-01) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 394641,023.50 07/01/2637986BROCKTON BP 2 FINAL PLAT (CITY FILE 26-005) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 3946489.00 07/01/2637987WEINAND WOODS 2ND PP (CITY FILE 26-009) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 3946444.50 07/01/2637988LOST LOON SITE PLAN (CITY FILE 26-12) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 39464293.00 07/01/2637989OSWALD CONCEPT PLAN (CITY FILE 26-013) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 39464133.50 07/01/26379903019 ADDITION CPA, RZ AND PP (26-014) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205 3946472.50 07/01/2637979BELLWETHER 10TH FP PUD VAC (24-020) 20260531LANDFORM PROFESSIONAL SERVICES06/08/26100-00000-22205-087 4,345.00 Total For Check 39464 Check 39465 3946558.11 07/01/2606/30/2026UB refund for account: 20020130-63620000LENNAR HOMES06/30/26601-00000-22200 58.11 Total For Check 39465 Check 39466 3946661.85 07/01/2606/30/2026UB refund for account: 20020090-63620000LENNAR HOMES OF MN06/30/26601-00000-22200 61.85 Total For Check 39466 Check 39467 3946756.49 07/01/2606/30/2026UB refund for account: 20020063-62525000LENNAR HOMES OF MN06/30/26601-00000-22200 56.49 Total For Check 39467 Check 39468 394681,145.53 07/01/2664596011POSTAGE FOR Q3 CORCORAN NEWSLETTERLIGHTNING PRINTING INC06/29/26100-41130-50322 39468766.26 07/01/2664153012ELECTION INFORMATION POSTCARDLIGHTNING PRINTING INC06/18/26100-41410-50210 1,911.79 Total For Check 39468 Check 39469 39469306.36 07/01/2667059PARK SUPPLIESMENARDS MAPLE GROVE06/26/26100-45200-50210 3946938.93 07/01/2667054SUPPLIES FOR UTILITIESMENARDS MAPLE GROVE06/26/26601-49400-50220 345.29 Total For Check 39469 Check 39470 39470128.49 07/01/26675743NAPA LAWN AND GARDEN TRACTOR FOR PARKSNAPA AUTO PARTS - Corcoran06/29/26100-45100-50210 128.49 Total For Check 39470 Check 39471 39471309.17 07/01/26P22942RAIN GUARD 39X3QUALITY FORKLIFT SALES & SERVICE 06/26/26100-43100-50220 42 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 6/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39471 309.17 Total For Check 39471 Check 39472 394726.75 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-41130-50130 39472186.75 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-41320-50130 39472106.75 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-41400-50130 3947251.70 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-41500-50130 3947250.92 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-41910-50130 3947233.75 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-41920-50130 39472892.15 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-42100-50130 39472223.80 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-42102-50130 3947283.37 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-42400-50130 39472261.20 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-43100-50130 3947224.00 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-43170-50130 3947215.77 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-45100-50130 39472552.00 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26100-45200-50130 3947266.82 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26601-49400-50130 3947266.82 07/01/2620260630JUNE 2026 LIFE INSURANCE PREMIUMSSECURIAN LIFE INSURANCE COMPANY06/29/26602-49450-50130 2,622.55 Total For Check 39472 Check 39473 39473312.45 07/01/262578084-5CK REQ WCA 22130 CR30 WETLAND DELINEATION 6616 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473726.15 07/01/262578084-6CK REQ WCA LANO 6616 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473536.25 07/01/262578084-7CK REQ WCA LOST LOON 6616 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473330.00 07/01/262578084-8CK REQ WCA ST THOMAS 6616 20260430STANTEC CONSULTING SERVICES06/30/26100-00000-22205 394733,314.80 07/01/262578567CK REQ BROCKTON LANE BUSINESS PARK 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473273.00 07/01/262578552CK REQ CHASTEK FAMILY FARMS 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 394732,815.93 07/01/262578080CK REQ COOK LAKE AMIRA LIVING 6199 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473539.68 07/01/262578079CK REQ COOK LAKE SUITE LIVING 6199 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473650.10 07/01/262578555CK REQ CORCORAN STORAGE II 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473340.66 07/01/262578087CK REQ CORCORAN STORAGE II2 TURN LANES 7310 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 3947376.60 07/01/262578091CK REQ COUNTY RD 101 AND 107TH PLACE TURN LANES 7585 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473761.48 07/01/262578554CK REQ FAIRWAY SHORES VILLAS AT COOK LAKE 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473451.05 07/01/262578572CK REQ HEATHER MEADOWS 3RD ADDITION 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473356.80 07/01/262578543CK REQ HOPE COMMUNITY 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473499.70 07/01/262578088CK REQ HUNTERS RIDGE TURN LANE IMPROVEMENTS 7336 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 3947391.00 07/01/262578081CK REQ LOST LOON SITE PLAN 6199 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473404.00 07/01/262578078CK REQ PARK PLACE 6199 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 3947389.95 07/01/262578544CK REQ RED BARN PET RETREAT 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 394731,373.40 07/01/262578577CK REQ SPRINGSAT CORCORAN 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 394731,457.00 07/01/262578546CK REQ ST THERESE SENIOR LIVING 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 39473232.20 07/01/262578573CK REQ ST THOMAS CHURCH 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 394731,263.13 07/01/262578556CK REQ WOODLAND HILLS 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205 3947385.30 07/01/262578551BECHTOLD FARM 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-013 3947357.61 07/01/262578521COOK LAKE HIGHLANDS 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-017 394732,293.95 07/01/262578549KARINIEMI MEADOWS 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-044 3947313,448.85 07/01/262578090OLD SETTLERS RD & HORSESHOE TRL RD IMPRVMNTS 7434 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-056 394737,326.48 07/01/262578525TAVERA 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-056 3947365.00 07/01/262578513RAVINIA 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-058 394731,450.75 07/01/262578540AMBERLY 1 2 BELLWETHER 6 7 9 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-087 394733,789.69 07/01/262578519BELLWETHER 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-087 394731,981.83 07/01/262578528RUSH CREEK RESERVE 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-098 39473179.00 07/01/262578548GARAGES TOO 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-111 39473375.83 07/01/262578538WALCOTT GLENN BP22-0016 6190 20260430STANTEC CONSULTING SERVICES06/18/26100-00000-22205-132 43 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 7/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39473 394731,462.50 07/01/262578089NEW CONSTRUCTION INSPECTION 5488 20260430STANTEC CONSULTING SERVICES06/18/26100-42400-50303 394734,842.00 07/01/262578092CITY OF CORCORAN 2026 GENERAL 7387 20260430STANTEC CONSULTING SERVICES06/18/26100-43170-50300 394731,148.35 07/01/262578084CITY OF CORCORAN WCA PROJECTS 6616 20260430STANTEC CONSULTING SERVICES06/18/26100-43170-50309 3947382.50 07/01/262578092CITY OF CORCORAN 2026 GENERAL 7387 20260430STANTEC CONSULTING SERVICES06/18/26100-43170-50309 39473424.80 07/01/262578083HUNTERS RIDGE FEASIBILITY STUDY 6257 20260430STANTEC CONSULTING SERVICES06/18/26408-48013-50303-402 394732,635.55 07/01/262578086CITY DOWNTOWN PARK 7229 20260430STANTEC CONSULTING SERVICES06/18/26415-45200-50300 3947365.00 07/01/262578096CITY CTR DR AND 79 PL ST UTILITIES 5033 20260430STANTEC CONSULTING SERVICES06/18/26434-48010-50303 39473168.00 07/01/262578093CORCORAN CIVIC CAMPUS SURVEY 7663 20260430STANTEC CONSULTING SERVICES06/18/26435-41400-50300 394731,409.50 07/01/262578581WATER SUPPLY, TREATMENT, & STORAGE FACILITY PRELIM DESIGN 20260430STANTEC CONSULTING SERVICES06/18/26601-00000-16500 39473608.00 07/01/262578097NE CORCORAN WATER TOWER 5274 20260430STANTEC CONSULTING SERVICES06/18/26601-49400-50300 394734,312.00 07/01/262578509TEST WELL #3 1173 20260430STANTEC CONSULTING SERVICES06/18/26601-49400-50303 39473960.80 07/01/262578089NEW CONSTRUCTION INSPECTION 5488 20260430STANTEC CONSULTING SERVICES06/18/26601-49400-50306 39473960.80 07/01/262578089NEW CONSTRUCTION INSPECTION 5488 20260430STANTEC CONSULTING SERVICES06/18/26602-49450-50306 67,029.42 Total For Check 39473 Check 39474 3947422.21 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-41130-50130 3947440.00 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-41320-50130 3947499.78 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-41400-50130 3947457.01 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-41500-50130 3947458.94 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-41910-50130 3947422.36 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-41920-50130 39474420.85 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-42100-50130 3947446.12 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-42102-50130 3947459.34 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-42400-50130 39474100.35 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-43100-50130 3947448.36 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-43170-50130 3947433.79 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-45100-50130 3947467.33 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26100-45200-50130 3947449.10 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26601-49400-50130 3947449.10 07/01/26302970442014JUNE 2026 LONG TERM DISABILITY PREMIUMSTHE HARTFORD06/30/26602-49450-50130 1,174.64 Total For Check 39474 Check 39475 394752,450.00 07/01/26119147PLAYGROUND CHIPS X 100THE MULCH FACTORY05/28/26100-45200-50221 394752,450.00 07/01/26119148PREMIUM HARDWOOD BARK MULCH X 120THE MULCH FACTORY05/29/26100-45200-50221 4,900.00 Total For Check 39475 Check 39476 39476860.00 07/01/2626062900CITY HALL & POLICE DEPARTMENT CLEANING JUNE 2026ULTIMATE CLEANERS LLC06/29/26100-41900-50401 860.00 Total For Check 39476 Check 39477 39477227.46 07/01/265846554192026 JULY FRONT OFFICE COPIER LEASEUS BANKCORP EQUIPMENT FINANCE07/01/26100-41900-50413 227.46 Total For Check 39477 Check 39478 394781,360.38 07/01/26VM0000724957CLEAN UP DAY MAY 2026VEIT DISPOSAL SYSTEMS06/14/26100-43201-50210 1,360.38 Total For Check 39478 Check 39479 39479243.95 07/01/269012935310VDC 5022 STD RL 2PLY TT INDV WRPD X 2 CSZEP SALES & SERVICE06/19/26100-41900-50210 243.95 Total For Check 39479 44 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 8/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number Check 39480 394802,175.00 07/09/2618AJUL26CORCO18A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26309-47000-50610 394803,750.00 07/09/2620AJUL26CORCO20A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26309-47000-50610 3948023,268.75 07/09/2622AJUL26CORCO22A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26309-47000-50610 39480247.50 07/09/2618AJUL26CORCO18A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26309-47000-50620 39480247.50 07/09/2620AJUL26CORCO20A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26309-47000-50620 39480495.00 07/09/2622AJUL26CORCO22A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26309-47000-50620 3948019,145.00 07/09/2620BJUL26CORCO20B INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26311-43100-50610 394806,040.00 07/09/2616AJUL26CORCO16A INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26312-47000-50610 3948011,137.50 07/09/2618AJUL26CORCO18A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26313-47000-50610 39480247.50 07/09/2618AJUL26CORCO18A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26313-47000-50620 3948076,025.00 07/09/2623AJUL26CORCORAN23A INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26314-47000-50610 3948090,325.00 07/09/2625AJUL26CORCORAN25A INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26315-47000-50610 39480247.50 07/09/2620AJUL26CORCO20A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26601-47000-50620 3948011,812.01 07/09/2614BJUL26CORCO14B INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26601-49400-50610 394806,000.00 07/09/2620AJUL26CORCO20A INTEREST & AGENT FEEFIRST NATIONAL BANK OF OMAHA06/01/26601-49400-50610 39480425,225.00 07/09/2623AJUL26CORCORAN23A INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26601-49400-50610 3948014,863.00 07/09/2614BJUL26CORCO14B INTERESTFIRST NATIONAL BANK OF OMAHA06/01/26602-49450-50610 691,251.26 Total For Check 39480 Check 39481 39481141,335.74 07/09/26CD202616677CALCIUM CHLORIDE 38%ENVIROTECH SERVICES06/26/26100-43122-50400 141,335.74 Total For Check 39481 Check 39482 39482292,460.38 07/09/2600008773HACKAMORE ROAD PROJECT - FINAL PAYMENTCITY OF MEDINA04/07/26419-43100-50303 292,460.38 Total For Check 39482 Check 39483 3948339,881.00 07/09/26W053262026 UNICARRIER: 6,000LB PNEUMATIC TIRE FORKLIFTQUALITY FORKLIFT SALES & SERVICE 06/16/26435-43100-50580 39,881.00 Total For Check 39483 45 CHECK REGISTER - COUNCIL INVOICE GL DISTRIBUTION REPORT FOR CITY OF CORCORAN 9/9Page: 06/30/2026 02:43 PM User: RCKOTTKE DB: Corcoran EXP CHECK RUN DATES 06/25/2026 - 07/09/2026 JOURNALIZED PAID - CHECK TYPE: PAPER CHECK Check #AmountChk DateInvoice Invoice Desc.VendorInvoice DateGL Number 274,483.05 Fund 100 GENERAL FUND 947.50 Fund 201 RESERVES DONATION FUND 30,183.75 Fund 309 D/S-EQUIPMENT CERTS 19,145.00 Fund 311 2020B CAPITAL IMP REFUNDING BOND D/S 6,040.00 Fund 312 2016A DOWNTOWN IMPROVEMENT D/S 11,385.00 Fund 313 ROCKFORD SCHOOL LAND 2018A D/S 76,025.00 Fund 314 2023A DEBT SERVICE 90,325.00 Fund 315 2025A DEBT SERVICE 2,000.00 Fund 401 LONG RANGE PLANNING 424.80 Fund 408 PAVEMENT MANAGEMENT 27,091.72 Fund 415 PARK CAPITAL FUND 292,460.38 Fund 419 HACKAMORE UPGRADE (LENNAR) 65.00 Fund 434 CITY CENTER DRIVE AND HORSESHOE BEND 85,703.99 Fund 435 2025A BOND EQUIPMENT 469,228.10 Fund 601 WATER 16,560.36 Fund 602 SEWER 254.80 Fund 603 STORMWATER Fund Totals: 1,402,323.45 Total For All Funds: 46 STAFF REPORT Agenda Item: 6.c Council Meeting: July 9, 2026 Prepared By: Matt Gsellmeier, Finance Director, Topic: 2025 Audit Financial Statements Action Required: Information Only Summary The DRAFT of the 2025 Audit information is provided in support of a briefing in which Schlenner Wenner & Co. representatives will be present at the Council meeting on July 9, 2026. There were no overall findings from the audit. Options Approve final 2025 audit Recommendation Approve final 2025 audit Council Action Information Only Attachments 1. 2025 Audited Financial Statements - Corcoran.pdf 47 City of Corcoran, Minnesota Audited Financial Statements For The Year Ended December 31, 2025 48 CITY OF CORCORAN, MINNESOTA TABLE OF CONTENTS INTRODUCTORY SECTION: CITY COUNCIL AND OFFICIALS ................................................................................................................................ 2 FINANCIAL SECTION: INDEPENDENT AUDITOR’S REPORT ........................................................................................................................ 4 REQUIRED SUPPLEMENTARY INFORMATION: Management’s Discussion and Analysis ....................................................................................................................... 8 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements Statement of Net Position ..................................................................................................................................... 18 Statement of Activities ......................................................................................................................................... 19 Fund Financial Statements Balance Sheet – Governmental Funds .................................................................................................................. 20 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position .................................................................................................................... 22 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................................................................................... 23 Reconciliation of Changes in Fund Balances of Governmental Funds to the Statement of Activities ............................................................................................................. 25 Statement of Net Position – Proprietary Funds .................................................................................................... 26 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds................................................................................................ 27 Statement of Cash Flows – Proprietary Funds ..................................................................................................... 28 Notes to the Basic Financial Statements ..................................................................................................................... 30 REQUIRED SUPPLEMENTARY INFORMATION: Budgetary Comparison Schedule – General Fund ....................................................................................................... 62 Schedule of City’s Proportionate Share of the Net Pension Liability .......................................................................... 65 Schedule of City Pension Contributions ...................................................................................................................... 66 Schedule of Changes in the City’s Total OPEB Liability ............................................................................................ 67 Notes to the Required Supplementary Information ..................................................................................................... 68 SUPPLEMENTARY INFORMATION: Combining Balance Sheet – All Nonmajor Governmental Funds ............................................................................... 77 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – All Nonmajor Governmental Funds ....................................................................... 78 Combining Balance Sheet – Nonmajor Governmental Funds – Special Revenue Funds ........................................................................................................................................ 79 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds – Special Revenue Funds ........................................................................................................................................ 81 Combining Balance Sheet – Nonmajor Governmental Funds – Capital Project Funds ........................................................................................................................................... 83 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds – Capital Project Funds ........................................................................................................................................... 85 Supplemental Combining Balance Sheet – Debt Service Fund ................................................................................... 87 Supplemental Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Debt Service Fund .................................................................................................. 88 Schedule of Indebtedness ............................................................................................................................................ 89 Summary Financial Report – Revenues and Expenditures for General Operations ......................................................................................................................................... 90 49 CITY OF CORCORAN, MINNESOTA TABLE OF CONTENTS (Continued) OTHER REQUIRED REPORTS AND SCHEDULES: 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 ................................................................................................................................. 92 50 1 INTRODUCTORY SECTION 51 2 CITY OF CORCORAN, MINNESOTA CITY COUNCIL AND OFFICIALS FOR THE YEAR ENDED DECEMBER 31, 2025 CITY COUNCIL Term Expires Tom McKee Mayor December 31, 2028 Michelle Friedrich Council Member December 31, 2028 Mark Lanterman Council Member December 31, 2026 Jeremy Nichols Council Member December 31, 2026 Dean Vehrenkamp Council Member December 31, 2028 CITY OFFICIALS Jay Tobin City Administrator Matthew Gsellmeier Finance Director 52 3 FINANCIAL SECTION 53 4 www.swco.cpa INDEPENDENT AUDITOR’S REPORT Honorable Mayor and City Council City of Corcoran, 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 Corcoran, 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 of Corcoran, Minnesota, as of December 31, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of interna l control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, w hether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 54 5 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 accordanc e 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. Misstatement s are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the jud gment 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, budgetary comparison schedules, pension schedules, and OPEB schedule listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context . We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying introductory section, combining and individual nonmajor fund financial statements and supplemental schedules, schedule of indebtedness, and summary financial report, are presented for purposes of additional analysis and are not a required part of the basic financial statements. 55 6 The combining and individual nonmajor fund financial statements and supplemental schedules are the responsibility of management and were derived from and relate 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 financi al 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 financial statements themselves, and ot her additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinio n, the combining and individual nonmajor fund financial statements and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, schedule of indebtedness, and summary financial report have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide a ny assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2026, on our consideration of the City of Corcoran’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope o f our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an op inion 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 of Corcoran’s internal control over financial reporting and compliance. SCHLENNER WENNER & CO. St. Cloud, Minnesota June 29, 2026 56 7 REQUIRED SUPPLEMENTARY INFORMATION 57 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 8 Our discussion and analysis of the City of Corcoran’s financial performance provides an overview of the City’s financial activities for the year ended December 31, 2025. Please read it in conjunction with the independent auditor’s report on page four and the City’s financial statements, which begin on page eighteen. FINANCIAL HIGHLIGHTS • The assets and deferred outflows of resources of the City of Corcoran exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $54,310,411 (net position). • The City’s net position increased $6,283,407 compared to the prior year as a result of this year’s operations. • In the City’s business-type activities, revenues decreased $1,604,351 while program expenses increased $1,159,114 (or 51.82 percent). These changes are discussed in greater detail throughout the following pages. • Total cost of all of the City’s programs increased $2,022,461 (or 14.42 percent). • In the current year, the City’s General Fund generated more revenue than budgeted by $643,082. Expenditures were below budget by $4,589. See additional details starting on page sixty-two. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activiti es (on pages eighteen and nineteen) provide information about the activities of the City as a whole and present a longer -term view of the City’s finances. Fund financial statements start on page twenty. These statements tell how governmental activity services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. Reporting the City as a Whole Our analysis of the City as a whole begins on page ten. One of the most important questions asked about the City’s finances is, “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows/inflows of resources, and liabilities using the accrual basis of accounting, which is similar to the accounting used by large private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City’s net position and changes in net position. You can think of the City’s net position (assets and deferred outflows, less liabilities and deferred inflows) as one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position are one indicator of whether its financial health is improving o r deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the City’s property tax bas e, costs associated with current and future construction projects, and the condition of the City’s roads, to assess the overall health of the City. 58 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 9 USING THIS ANNUAL REPORT (Continued) In the Statement of Net Position and the Statement of Activities, we divide the City into two kinds of activities: • Governmental Activities - Most of the City’s basic services are reported here, including the police, fire, public works, parks departments, and general administration. Property taxes, special assessments, licenses, permits, fees and state aids finance most of these activities. • Business-type Activities - The City charges a fee to customers to help it cover all or most of the cost of certain services it provides. The City’s water and sewer activities are reported here. Reporting the City’s Most Significant Funds Our analysis of the City’s funds begins on page twelve. The fund financial statements begin on page twenty and provide detailed information about the most significant funds - not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, the City Council may establish other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants and other money. The City’s tw o kinds of funds (governmental and proprietary) use different accounting approaches. • Governmental Funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in reconciliations following the governmental fund financial statements. • Proprietary Funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City’s proprietary funds are the same as the business-type activities we report in the government-wide statements but provide more detail and additional information, such as cash flows, for proprietary funds. 59 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 10 THE CITY AS A WHOLE The City’s combined net position increased $6,283,407 from a year ago. Our analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities. Net Position Governmental Business-Type Total Activities Activities Government 2025 2024 2025 2024 2025 2024 Current and Other Assets 20,989,220$ 18,139,729$ 11,521,835$ 15,007,000$ 32,511,055$ 33,146,729$ Net Capital Assets 34,174,338 28,930,250 36,318,415 33,598,762 70,492,753 62,529,012 Total Assets 55,163,558 47,069,979 47,840,250 48,605,762 103,003,808 95,675,741 Deferred Outflows of Resources 2,288,391 2,302,169 33,909 - 2,322,300 2,302,169 Current Liabilities 3,979,616 3,255,669 1,694,661 3,707,413 5,674,277 6,963,082 Noncurrent Liabilities 18,407,345 15,293,158 24,370,363 25,024,710 42,777,708 40,317,868 Total Liabilities 22,386,961 18,548,827 26,065,024 28,732,123 48,451,985 47,280,950 Deferred Inflows of Resources 2,534,538 2,758,257 29,174 - 2,563,712 2,758,257 Net Position: Net Investment in Capital Assets 20,310,523 17,289,155 11,249,613 8,574,052 31,560,136 25,863,207 Restricted 8,619,382 7,342,209 - - 8,619,382 7,342,209 Unrestricted 3,600,545 3,433,700 10,530,348 11,299,587 14,130,893 14,733,287 Total Net Position 32,530,450$ 28,065,064$ 21,779,961$ 19,873,639$ 54,310,411$ 47,938,703$ Table 1 The net position of the City’s governmental activities increased by $4,377,085 (or 15.60 percent), after adjusting opening net position for restatements. Unrestricted net position (the part of net position that can be used to finance day -to-day operations without constraints established by debt covenants, enabling legislation or other legal requirements) increased by $166,845 (or 4.86 percent) compared to the prior year. The net position of the City’s business-type activities increased by $1,906,322. Operating activities were comparable to the prior year, but certain matters resulting in significant revenue and expense fluctuations have been discussed in greater detail in the following pages. 60 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 11 THE CITY AS A WHOLE (Continued) Governmental Business-Type Total Activities Activities Government 2025 2024 2025 2024 2025 2024 REVENUES Charges for Services 3,541,005$ 3,187,751$ 2,050,162$ 1,646,010$ 5,591,167$ 4,833,761$ Operating Grants and Contributions 719,366 983,200 10,858 54,263 730,224 1,037,463 Capital Grants and Contributions 1,281,099 (937) 4,648,860 5,756,970 5,929,959 5,756,033 Property Taxes 9,156,632 8,346,438 - - 9,156,632 8,346,438 Intergovernmental 77,992 94,458 52 - 78,044 94,458 Franchise Taxes 69,848 66,024 - - 69,848 66,024 Investment Income (Loss)417,445 339,316 264,668 1,121,708 682,113 1,461,024 Other 88,162 - - - 88,162 - Total Revenues 15,351,549 13,016,250 6,974,600 8,578,951 22,326,149 21,595,201 PROGRAM EXPENSES General Government 2,793,315 3,130,525 - - 2,793,315 3,130,525 Public Safety 5,485,727 4,491,263 - - 5,485,727 4,491,263 Public Works 3,409,918 3,150,004 - - 3,409,918 3,150,004 Sanitation 20,403 18,789 20,403 18,789 Parks and Recreation 465,282 693,962 - - 465,282 693,962 Debt Service 477,007 303,762 - - 477,007 303,762 Water - - 2,198,604 1,675,070 2,198,604 1,675,070 Sewer - - 1,197,393 561,813 1,197,393 561,813 Total Expenses 12,651,652 11,788,305 3,395,997 2,236,883 16,047,649 14,025,188 Change in Net Position Prior to Gain (Loss) and Transfers 2,699,897 1,227,945 3,578,603 6,342,068 6,278,500 7,570,013 Gain (Loss) on Disposal of Assets 5,161 305,033 - - 5,161 305,033 Capital Asset Transfers - (116,046) - 116,046 - - Transfers 1,672,281 596,430 (1,672,281) (596,430) - - Total Gain (Loss) and Transfers 1,677,442 785,417 (1,672,281) (480,384) 5,161 305,033 Change in Net Position 4,377,339 2,013,362 1,906,322 5,861,684 6,283,661 7,875,046 Net Position - Beginning of Year 28,153,111 26,051,702 19,873,639 14,011,955 48,026,750 40,063,657 (2024 Restated) Net Position - End of Year 32,530,450$ 28,065,064$ 21,779,961$ 19,873,639$ 54,310,411$ 47,938,703$ Changes in Net Position Table 2 The City’s total revenues increased by $730,948 (3.38 percent), while the total cost of all programs and services increased by $2,022,461 (14.42 percent). Our analysis below separately considers the operations of governmental and business-type activities. Governmental Activities Revenue for the City’s governmental activities increased by $2,335,299 (or 17.94 percent), primarily due to State and Federal grant funding received for the City’s capital projects. Additionally, property tax revenues increased by approximately $810,000. Expenses for governmental activities also increased in comparison to the prior year, by $863,347 (or 7.32 percent). This increase was primarily for additional public safety costs incurred during the year, specifically for law enforcement related activities . 61 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 12 THE CITY AS A WHOLE (Continued) Table 3 presents the cost of each of the City’s programs (general government, public safety, public works, sanitation, parks and recreation, and debt service) as well as each program’s net cost (total cost less revenues generated by the activities). The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions. Activities (net of capital ou tlay which is excluded from Table 3) were generally comparable to the prior year as operations remained fairly consistent with the prior year, with the exception of: • Parks and Recreation net cost of services decreased $663,694, primarily due to an increase in park dedication fees and decreased professional service expenses. • Public Safety net cost of services increased $641,274 (20.15 percent), primarily due to the increases in operational costs previously discussed. Governmental Activities Total Cost Net Cost of Services of Services 2025 2024 2025 2024 General Government 2,793,315$ 3,130,525$ 2,572,710$ 2,903,037$ Public Safety 5,485,727 4,491,263 3,824,126 3,182,852 Public Works 3,409,918 3,150,004 1,393,115 1,723,336 Sanitation 20,403 18,789 20,403 18,789 Parks and Recreation 465,282 693,962 (1,177,179) (513,485) Debt Service 477,007 303,762 477,007 303,762 Totals 12,651,652$ 11,788,305$ 7,110,182$ 7,618,291$ Table 3 Business-type Activities Revenues of the City’s business-type activities (see Table 2) decreased by $1,604,351 (18.70 percent) and program expenses increased by $1,159,114 (or 51.82 percent). Revenues decreased as a result of Federal grant funding for a City infrastructure project in the prior year, which was not repeated in the current year. This decrease was partially mitigated by additional revenues from connection fees received in the current year. Expenses increased primarily due to repairs and maintenance and changes in accounting (fund allocations) for employee costs. THE CITY’S FUNDS Governmental Funds As the City completed the year, its governmental funds (as presented in the balance sheet on page twenty) reported a combined fund balance of $15,825,096. This is an increase of $4,019,152 from the prior year. Financial information specific to the governmental funds is detailed below and in the following pages. Such information was derived from the fund financial statements. Increase 2025 2024 (Decrease) General 5,154,787$ 4,671,426$ 483,361$ Fund Balance December 31, Major Funds The fund balance of the General Fund increased by $483,361 compared to 2024. Details of the General Fund’s revenues and expenditures are displayed on the following page. 62 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 13 THE CITY’S FUNDS (Continued) General Fund Revenues The City received the majority of its funding in the General Fund from property taxes (71.80 percent) and licenses, permits and fees (17.81 percent). General Fund revenues were comparable to the prior year in aggregate, but various fluctuations were experienced for individual sources. Property taxes and intergovernmental revenues increased considerably. General Fund Expenditures 63 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 14 THE CITY’S FUNDS (Continued) A significant portion of the City’s General Fund expenditures are used for public safety (47.18 percent). Remaining expenditures are used for general government operations (24.45 percent), public works (24.03 percent), parks and recreation (3.05 percent), capital outlay (0.99 percent), sanitation (0.19 percent), and debt service (0.11 percent). Overall, the City’s General Fund expenditures increased, primarily due to the additional public safety costs due to personnel costs. Additionally, expenditures for public works increase primarily due to personnel costs. Increase 2025 2024 (Decrease) Fund Balance December 31, Major Funds Debt Service 1,775,000$ 292,997$ 1,482,003$ The increase in fund balance noted for the Debt Service Fund was driven primarily by amounts transferred into the fund from the Water and Sewer Funds. Additionally, a portion of the proceeds and the premium from the 2025A bond issuance were deposited into this fund. Park Capital 3,557,997$ 5,155,954$ (1,597,957)$ The Park Capital Fund balance decreased because of an increase in expenditures for the Park Planning & Design project that began in 2025. City Center Drive 1,255,781$ (1,778,918)$ 3,034,699$ The City Center Drive Fund balance increased, primarily due to funding received for construction project costs incurred during both 2024 and 2025. Additionally, significant amounts were transferred into the fund from the Hackamore Upgrade Fund. 2025A Equipment Bond 1,387,814$ -$ 1,387,814$ The 2025A Equipment Bond Fund experienced increases in revenue due to the issuance of the 2025A bonds, and an increase in expenditures due to the capital acquisitions of vehicles and equipment. General Fund Budgetary Highlights The City’s General Fund generated more revenue than budgeted of $643,082, which was primarily due to additional revenues from building permits issued during the year. Expenditures were under budgeted by $4,589. Expenditures for both public works and parks and recreation activities came in under budget, but these differences were largely offset by additional unbudgeted expenditures in the areas of other public safety and general government operations. Proprietary Funds As the City completed the year, its business-type activities reported a combined net position of $21,779,961. This is an increase of $1,906,322 from the prior year. The following is a summary of the City’s major proprietary funds: Increase 2025 2024 (Decrease) Water 13,844,882$ 11,538,729$ 2,306,153$ Net Position December 31, Major Funds The increase in net position noted above for the Water Fund can be attributed to significant revenues from fees for new connections received during 2025. Sewer 7,849,011$ 8,250,431$ (401,420)$ The decrease in net position noted above for the Sewer Fund was due to fewer new connections in the current year, combined with a significant transfer to the Debt Service Fund. 64 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 15 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets At the end of 2025, the City had $70,492,753 invested in a broad range of capital assets, including land, buildings, infrastructure, and equipment. This amount represents a net increase of $7,963,741 (or 12.74 percent) over last year. Significant capital asset activity from throughout the year included the following: • Approximately $3.0 million for the Park Planning & Design project • Approximately $2.4 million for the Water Supply, Treatment, & Storage Facility project • Vehicle purchases for public safety, public works, water and sewer departments 2025 2024 2025 2024 2025 2024 Land 3,700,474$ 3,700,474$ 647,509$ 647,509$ 4,347,983$ 4,347,983$ Construction In Progress 7,778,642 8,835,455 27,524,866 24,599,349 35,303,508 33,434,804 Buildings 2,900,380 3,080,793 - - 2,900,380 3,080,793 Infrastructure 15,144,394 10,504,316 7,840,466 8,201,192 22,984,860 18,705,508 Equipment 4,604,652 2,809,212 305,574 150,712 4,910,226 2,959,924 Leased Equipment 45,796 - - - 45,796 - Totals 34,174,338$ 28,930,250$ 36,318,415$ 33,598,762$ 70,492,753$ 62,529,012$ Table 4 Capital Assets Net of Depreciation and Amortization Governmental Business-Type Activities Activities Totals More detailed information about the City’s capital assets is presented in Note 2.B. to the financial statements. Debt At year-end, the City had $38,842,212 in debt versus a balance of $36,665,805 in the prior, as shown in Table 5. Outstanding Debt at Year-End Governmental Activities Activities Totals 2025 2024 2025 2024 2025 2024 General Obligation Bonds 13,755,000$ 11,105,000$ -$ -$ 13,755,000$ 11,105,000$ G.O. Revenue Bonds - - 23,290,000 23,930,000 23,290,000 23,930,000 Unamortized Bond Premium 744,780 536,095 910,638 951,440 1,655,418 1,487,535 Notes Payable - - 97,547 143,270 97,547 143,270 Lease Liabilities 44,247 - - - 44,247 - Totals 14,544,027$ 11,641,095$ 24,298,185$ 25,024,710$ 38,842,212$ 36,665,805$ Business-Type Table 5 More detailed information regarding the City’s indebtedness can be found in Note 2.C. to the financial statements. 65 CITY OF CORCORAN, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2025 16 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES The City continues to work towards increasing its unrestricted fund balance and remove unfunded liabilities. The City has experienced significant growth in both commercial -industrial and residential sectors. In 2025, the City issued 34 commercial- industrial building permits and 1,172 residential permits, with a total valuation of $179,369,746. As of May 2026, 26 commercial- industrial permits and 428 residential permits have been issued, valued at $95,533,512. Property values continue to increase, and new residential development is at a pace of over 300 new homes per year. A number of commercial and industrial approvals were granted by the City in 2025, including a 286,120 square foot light industrial building at Brockton Business Park Phase 1, and a 32 -unit memory care facility at Suite Living in Cook Lake Highlands. As of 2026, final plat and site plan approval has been granted for a 252,120 square foot light industrial for phase two of Brockton Business Park. A number of residential developments are underway, with significant projects like Rush Creek Reserve, Hope Meadows, Amira at Cook Lake Highlands, Suite Living at Cook Lake Highlands, St. Therese, Tavera, Bellwether, Fairway Shores Villas, Heather Meadows, and Upward Acres. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers and investors and creditors with a general ov erview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this rep ort or need additional financial information, contact Matt Gsellmeier, Finance Director, at the City of Corcoran, 8200 County Road 116, Corcoran, MN 55340. 66 17 BASIC FINANCIAL STATEMENTS 67 CITY OF CORCORAN, MINNESOTA STATEMENT OF NET POSITION DECEMBER 31, 2025 See accompanying notes. 18 Governmental Activities Business-Type Activities Totals ASSETS Cash, Cash Equivalents, and Investments 19,139,762$ 10,672,952$ 29,812,714$ Property Taxes Receivable 73,767 - 73,767 Accounts Receivable 148,464 775,443 923,907 Interest Receivable 147,688 - 147,688 Due from Other Governments 1,080,737 - 1,080,737 Prepaids 42,857 29,140 71,997 Assessments Receivable 355,945 44,300 400,245 Capital Assets Not Being Depreciated 11,479,116 28,172,375 39,651,491 Capital Assets Being Depreciated (Net) 22,695,222 8,146,040 30,841,262 TOTAL ASSETS 55,163,558 47,840,250 103,003,808 DEFERRED OUTFLOWS OF RESOURCES Pensions 2,288,391 33,909 2,322,300 LIABILITIES Accounts Payable 876,196 76,664 952,860 Salaries Payable 148,349 15,674 164,023 Payroll Deductions and Employer Contributions 56,762 2,376 59,138 Construction Contracts Payable 707,602 770,617 1,478,219 Deposits Payable 1,865,746 - 1,865,746 Due to Other Governments 79,767 434,966 514,733 Deposits Payable - 1,635 1,635 Accrued Interest Payable 245,194 392,729 637,923 Noncurrent Liabilities: Due Within One Year: Long-term Liabilities 1,286,772 728,935 2,015,707 Due After One Year: Long-term Liabilities 13,714,506 23,594,974 37,309,480 Net OPEB Liability 1,391,363 - 1,391,363 Net Pension Liability 2,014,704 46,454 2,061,158 TOTAL LIABILITIES 22,386,961 26,065,024 48,451,985 DEFERRED INFLOWS OF RESOURCES Pensions 2,534,538 29,174 2,563,712 NET POSITION Net Investment in Capital Assets 20,310,523 11,249,613 31,560,136 Restricted for: Capital Outlay 2,804,235 - 2,804,235 Debt Service 1,599,042 - 1,599,042 Parks (Dedication Fees)3,557,997 - 3,557,997 Police Expenditures 12,445 - 12,445 Lawful Gambling Purposes 251,185 - 251,185 Capital Equipment 46,315 - 46,315 Hackamore Road Improvements 72,553 - 72,553 Wetland Restoration 112,944 - 112,944 Pulte Encore Development 162,666 - 162,666 Unrestricted 3,600,545 10,530,348 14,130,893 TOTAL NET POSITION 32,530,450$ 21,779,961$ 54,310,411$ 68 CITY OF CORCORAN, MINNESOTA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 19 Operating Capital Charges for Grants and Grants and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total Governmental Activities: General Government 2,793,315$ 206,640$ 12,460$ 1,505$ (2,572,710)$ -$ (2,572,710)$ Public Safety 5,485,727 1,247,950 413,651 - (3,824,126) - (3,824,126) Public Works 3,409,918 904,901 240,555 871,347 (1,393,115) - (1,393,115) Sanitation 20,403 - - - (20,403) - (20,403) Parks and Recreation 465,282 1,181,514 52,700 408,247 1,177,179 - 1,177,179 Debt Service 477,007 - - - (477,007) - (477,007) Total Governmental Activities 12,651,652 3,541,005 719,366 1,281,099 (7,110,182) - (7,110,182) Business-Type Activities: Water 2,198,604 1,071,042 1,404 3,883,140 - 2,756,982 2,756,982 Sewer 1,197,393 979,120 9,454 765,720 - 556,901 556,901 Total Business-Type Activities 3,395,997 2,050,162 10,858 4,648,860 - 3,313,883 3,313,883 TOTALS 16,047,649$ 5,591,167$ 730,224$ 5,929,959$ (7,110,182) 3,313,883 (3,796,299) General Revenues: Property Taxes 9,156,632 - 9,156,632 Franchise Taxes 69,848 - 69,848 Intergovernmental 77,992 52 78,044 Investment Income 417,445 264,668 682,113 Gain (Loss) on Sale of Assets 5,161 - 5,161 Miscellaneous 88,162 - 88,162 Total General Revenues 9,815,240 264,720 10,079,960 Transfers 1,672,281 (1,672,281) - Total General Revenues and Transfers 11,487,521 (1,407,561) 10,079,960 CHANGE IN NET POSITION 4,377,339 1,906,322 6,283,661 NET POSITION - BEGINNING OF YEAR 28,065,064 19,873,639 47,938,703 (As Previously Reported) ADJUSTMENTS AND RESTATEMENTS Restatement - Correction of an Error 88,047 - 88,047 NET POSITION - BEGINNING OF YEAR 28,153,111 19,873,639 48,026,750 (As Restated) NET POSITION - END OF YEAR 32,530,450$ 21,779,961$ 54,310,411$ Functions/Programs Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government 69 CITY OF CORCORAN, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2025 See accompanying notes. 20 General Fund Debt Service Fund Park Capital Fund City Center Drive Fund 2025A Bond Equipment Fund Nonmajor Governmental Funds Total Governmental Funds ASSETS Cash, Cash Equivalents, and Investments 7,229,795$ 1,775,000$ 4,109,289$ 1,332,131$ 1,602,712$ 3,090,835$ 19,139,762$ Property Taxes Receivable 73,767 - - - - - 73,767 Assessments Receivable 50,446 69,236 - - - 236,263 355,945 Accounts Receivable 148,464 - - - - - 148,464 Interest Receivable 147,688 - - - - - 147,688 Due from Other Governments 135,374 - - 945,363 - - 1,080,737 Due from Other Funds 229,214 - - - - - 229,214 Prepaids 42,857 - - - - - 42,857 TOTAL ASSETS 8,057,605$ 1,844,236$ 4,109,289$ 2,277,494$ 1,602,712$ 3,327,098$ 21,218,434$ LIABILITIES Accounts Payable 567,631$ -$ 6,251$ -$ 187,678$ 114,636$ 876,196$ Salaries Payable 148,349 - - - - - 148,349 Payroll Deductions and Employer Contributions 56,762 - - - - - 56,762 Construction Contracts Payable 39,985 - 545,041 76,350 - 46,226 707,602 Deposits Payable 1,859,329 - - - - 6,417 1,865,746 Due to Other Governments 51,922 - - - 27,220 625 79,767 Due to Other Funds - - - - - 229,214 229,214 Total Liabilities 2,723,978 - 551,292 76,350 214,898 397,118 3,963,636 Capital Projects 70 CITY OF CORCORAN, MINNESOTA BALANCE SHEET (Continued) GOVERNMENTAL FUNDS DECEMBER 31, 2025 See accompanying notes. 21 General Fund Debt Service Fund Park Capital Fund City Center Drive Fund 2025A Bond Equipment Fund Nonmajor Governmental Funds Total Governmental Funds Capital Projects DEFERRED INFLOWS OF RESOURCES Unavailable Revenue: Property Taxes 73,767 - - - - - 73,767 Special Assessments 47,703 69,236 - - - 236,263 353,202 Other Receivables 57,370 - - 945,363 - - 1,002,733 Total Deferred Inflows of Resources 178,840 69,236 - 945,363 - 236,263 1,429,702 FUND BALANCES Nonspendable 42,857 - - - - - 42,857 Restricted 160,640 1,775,000 3,557,997 1,255,781 1,387,814 658,108 8,795,340 Committed - - - - - 180,756 180,756 Assigned - - - - - 2,150,041 2,150,041 Unassigned 4,951,290 - - - - (295,188) 4,656,102 Total Fund Balances 5,154,787 1,775,000 3,557,997 1,255,781 1,387,814 2,693,717 15,825,096 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 8,057,605$ 1,844,236$ 4,109,289$ 2,277,494$ 1,602,712$ 3,327,098$ 21,218,434$ 71 CITY OF CORCORAN, MINNESOTA RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2025 See accompanying notes. 22 Total Fund Balances - Governmental Funds 15,825,096$ Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported as assets in governmental funds: Capital Assets 45,161,246$ Accumulated Depreciation (10,986,908) Capital Assets (Net) 34,174,338 Long-term liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the governmental funds: Bond Principal Payable (13,755,000) Bond Premium, Net of Accumulated Amortization (744,780) Lease Liabilities (44,247) Compensated Absences (457,251) (15,001,278) The net OPEB liability represents the present value of projected unfunded future postemployment benefits other than pensions, as determined by an actuary as of the most recent measurement date. Such liability and related balances do not represent the impending use of current financial resources and, therefore, are not reported in the funds: Net OPEB Liability (1,391,363) The net pension liability and related deferred outflows/inflows represent the allocation of pension obligations to the City. Such balances are not reported in the governmental funds: Net Pension Liability (2,014,704) Deferred Outflows - Pensions 2,288,391 Deferred Inflows - Pensions (2,534,538) (2,260,851) Interest payable on long-term debt does not require current financial resources and, therefore, is not reported as a liability in the governmental funds Balance Sheet:(245,194) Other long-term assets are not available to pay for current-period expenditures and, therefore, are reported as unavailable in the governmental funds: Property Taxes Receivable 73,767 Special Assessments Receivable 353,202 Other Receivables 1,002,733 1,429,702 TOTAL NET POSITION OF GOVERNMENTAL ACTIVITIES 32,530,450$ 72 CITY OF CORCORAN, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 23 General Fund Debt Service Fund Park Capital Fund City Center Drive Fund 2025A Bond Equipment Fund Nonmajor Governmental Funds Total Governmental Funds REVENUES Property Taxes 7,979,413$ 1,184,929$ -$ -$ -$ -$ 9,164,342$ Franchise Taxes 69,848 - - - - - 69,848 Special Assessments 3,755 75,457 - - - 40,416 119,628 Licenses, Permits, and Fees 1,979,080 - - - - - 1,979,080 Intergovernmental 662,667 - 500,000 2,184,527 - 130,270 3,477,464 Charges for Services 181,545 - 1,171,654 - - 40,928 1,394,127 Fines 31,490 - - - - 114 31,604 Investment Income 113,511 14,619 91,338 13,610 123,764 60,603 417,445 Miscellaneous 92,789 - 17,126 275,825 - 137,591 523,331 TOTAL REVENUES 11,114,098 1,275,005 1,780,118 2,473,962 123,764 409,922 17,176,869 EXPENDITURES Current: General Government 2,632,629 - - - - 96,096 2,728,725 Public Safety 5,080,681 - - - - 45,998 5,126,679 Public Works 2,588,004 - - - - (1) 2,588,003 Sanitation 20,403 - - - - - 20,403 Parks and Recreation 327,829 - - - - - 327,829 Capital Outlay 106,748 - 3,378,075 397,003 2,219,632 640,619 6,742,077 Debt Service: Principal 11,830 1,045,000 - - - - 1,056,830 Interest and Other Charges - 333,613 - - 110,708 - 444,321 TOTAL EXPENDITURES 10,768,124 1,378,613 3,378,075 397,003 2,330,340 782,712 19,034,867 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 345,974 (103,608) (1,597,957) 2,076,959 (2,206,576) (372,790) (1,857,998) Capital Projects 73 CITY OF CORCORAN, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued) GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 24 General Fund Debt Service Fund Park Capital Fund City Center Drive Fund 2025A Bond Equipment Fund Nonmajor Governmental Funds Total Governmental Funds Capital Projects OTHER FINANCING SOURCES (USES) Sale of Assets 72,464 - - - 35,881 68,790 177,135 Capital Lease Proceeds 56,077 - - - - - 56,077 Bond Issuance - 136,491 - - 3,558,509 - 3,695,000 Premium on Bond Issuance - 276,657 - - - - 276,657 Transfers In 499,818 1,172,463 - 957,740 - 490,972 3,120,993 Transfers Out (490,972) - - - - (957,740) (1,448,712) TOTAL OTHER FINANCING SOURCES (USES)137,387 1,585,611 - 957,740 3,594,390 (397,978) 5,877,150 NET CHANGE IN FUND BALANCES 483,361 1,482,003 (1,597,957) 3,034,699 1,387,814 (770,768) 4,019,152 FUND BALANCES - BEGINNING 4,583,379 292,997 5,155,954 (1,778,918) - 3,464,485 11,717,897 (As Previously Reported) ADJUSTMENTS AND RESTATEMENTS Restatement - Correction of an Error 88,047 - - - - - 88,047 FUND BALANCES - BEGINNING 4,671,426 292,997 5,155,954 (1,778,918) - 3,464,485 11,805,944 (As Restated) FUND BALANCES - ENDING 5,154,787$ 1,775,000$ 3,557,997$ 1,255,781$ 1,387,814$ 2,693,717$ 15,825,096$ 74 CITY OF CORCORAN, MINNESOTA RECONCILIATION OF CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 25 Net Change in Fund Balances - Total Governmental Funds 4,019,152$ Amounts reported for governmental activities in the Statement of Activities are different due to the following: Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation and amortization expense: Capital Outlay Capitalized - Capital Assets 6,502,755$ Depreciation Expense (1,257,787) Capital Assets Acquired via Trade-in 171,094 Gain (Loss) on Disposal of Assets (171,974) 5,244,088 The issuance of long-term debt provides current financial resources to governmental funds while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The amounts below detail the effects of these differences in the treatment of long-term debt and related items: Bond Principal Repayments 1,045,000 Bonds Issuance (3,695,000) Premium on Bond Issuance (276,657) Amortization of Bond Premium 67,972 Lease Issuance (56,077) Lease Principal Repayments 11,830 (2,902,932) Interest on long-term debt in the Statement of Activities differs from the amounts reported in the governmental funds because interest is recognized as an expenditure in the funds only when it is due. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due: (100,659) Under the modified accrual basis of accounting, certain revenues cannot be recognized until they are available to liquidate liabilities of the current period: Property Taxes (7,710) Special Assessments (17,937) Other Receivables (1,855,349) (1,880,996) Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds: Compensated Absences 11,469 Certain liabilities do not represent the impending use of current resources. Therefore, the change in such liabilities and related deferrals are not reported in the governmental funds: Net OPEB Liability and Deferred Outflows/Inflows of Resources (300,547) Net Pension Asset/Liability and Deferred Outflows/Inflows of Resources 287,764 (12,783) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 4,377,339$ 75 CITY OF CORCORAN, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2025 See accompanying notes. 26 Nonmajor Water Fund Sewer Fund Storm Fund Totals ASSETS Current Assets Cash and Cash Equivalents 6,682,054$ 3,904,830$ 86,068$ 10,672,952$ Accounts Receivable 551,449 223,994 - 775,443 Prepaids 190 28,950 - 29,140 Total Current Assets 7,233,693 4,157,774 86,068 11,477,535 Noncurrent Assets Capital Assets Not Being Depreciated 28,045,758 126,617 - 28,172,375 Capital Assets Being Depreciated (Net)3,497,071 4,648,969 - 8,146,040 Assessments Receivable 34,715 9,585 - 44,300 Total Noncurrent Assets 31,577,544 4,785,171 - 36,362,715 TOTAL ASSETS 38,811,237 8,942,945 86,068 47,840,250 DEFERRED OUTFLOWS OF RESOURCES Pensions 16,954 16,955 - 33,909 LIABILITIES Current Liabilities Accounts Payable 57,489 19,175 - 76,664 Salaries Payable 7,837 7,837 - 15,674 Payroll Deductions and Employer Contributions 1,188 1,188 - 2,376 Construction Contracts Payable 770,617 - - 770,617 Due to Other Governments 398,535 36,431 - 434,966 Other Current Liabilities 1,635 - - 1,635 Accrued Interest 379,203 13,526 - 392,729 Compensated Absences Due Within One Year 5,659 5,659 - 11,318 Debt Due Within One Year 626,417 91,200 - 717,617 Total Current Liabilities 2,248,580 175,016 - 2,423,596 Noncurrent Liabilities Debt Due After One Year 22,689,712 890,856 - 23,580,568 Compensated Absences Due After One Year 7,203 7,203 - 14,406 Net Pension Liability 23,227 23,227 - 46,454 Total Noncurrent Liabilities 22,720,142 921,286 - 23,641,428 TOTAL LIABILITIES 24,968,722 1,096,302 - 26,065,024 DEFERRED INFLOWS OF RESOURCES Pensions 14,587 14,587 - 29,174 NET POSITION Net Investment in Capital Assets 7,456,083 3,793,530 - 11,249,613 Unrestricted 6,388,799 4,055,481 86,068 10,530,348 TOTAL NET POSITION 13,844,882$ 7,849,011$ 86,068$ 21,779,961$ 76 CITY OF CORCORAN, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 27 Nonmajor Water Fund Sewer Fund Storm Fund Totals OPERATING REVENUES Charges for Services 1,071,042$ 979,120$ -$ 2,050,162$ OPERATING EXPENSES Wages and Benefits 256,408 230,816 - 487,224 Materials and Supplies 162,364 44,362 - 206,726 Repairs and Maintenance 57,291 245,827 - 303,118 Professional Services 177,410 11,298 - 188,708 Water and Sewer Consumption Charges 460,848 367,513 - 828,361 Insurance 692 25,345 - 26,037 Utilities 42,684 23,784 - 66,468 Depreciation 163,374 216,349 - 379,723 TOTAL OPERATING EXPENSES 1,321,071 1,165,294 - 2,486,365 NET OPERATING INCOME (250,029) (186,174) - (436,203) NONOPERATING INCOME (EXPENSE) Intergovernmental 26 26 - 52 Investment Income (Loss)175,388 87,691 1,589 264,668 Miscellaneous 1,404 9,454 - 10,858 Interest and Other Charges (877,533) (32,099) - (909,632) NET NONOPERATING INCOME (EXPENSE)(700,715) 65,072 1,589 (634,054) CHANGE IN NET POSITION PRIOR TO CONTRIBUTIONS AND TRANSFERS (950,744) (121,102) 1,589 (1,070,257) CAPITAL CONTRIBUTIONS AND TRANSFERS Capital Contributions: Connection Fees 3,883,140 765,720 - 4,648,860 Transfers Out (626,243) (1,046,038) - (1,672,281) TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS 3,256,897 (280,318) - 2,976,579 CHANGE IN NET POSITION 2,306,153 (401,420) 1,589 1,906,322 NET POSITION - BEGINNING OF YEAR 11,538,729 8,250,431 84,479 19,873,639 NET POSITION - END OF YEAR 13,844,882$ 7,849,011$ 86,068$ 21,779,961$ 77 CITY OF CORCORAN, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 28 Nonmajor Water Fund Sewer Fund Storm Fund Totals CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 616,348$ 824,492$ -$ 1,440,840$ Cash Paid to Suppliers (2,388,090) (732,752) - (3,120,842) Cash Paid to Employees (213,661) (188,070) - (401,731) NET CASH PROVIDED BY OPERATING ACTIVITIES (1,985,403) (96,330) - (2,081,733) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Taxes and Intergovernmental 26 26 - 52 Other Receipts from Customers 1,404 9,454 - 10,858 Net Operating Subsidies and Transfers from (to) Other Funds (626,243) (1,046,038) - (1,672,281) NET CASH USED BY NONCAPITAL FINANCING ACTIVITIES (624,813) (1,036,558) - (1,661,371) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Connection Fees 3,733,909 747,481 - 4,481,390 Special Assessments 3,037,253 8,407 - 3,045,660 Purchases of Capital Assets (3,402,329) (57,769) - (3,460,098) Payments on Debt Principal (597,323) (88,400) - (685,723) Cash Paid for Interest (927,270) (33,788) - (961,058) NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES 1,844,240 575,931 - 2,420,171 CASH FLOWS FROM INVESTING ACTIVITIES Investment Income 175,388 87,691 1,589 264,668 Net Change in Cash and Cash Equivalents (590,588) (469,266) 1,589 (1,058,265) Cash and Cash Equivalents - Beginning of Year 7,272,642 4,374,096 84,479 11,731,217 Cash and Cash Equivalents - End of Year 6,682,054$ 3,904,830$ 86,068$ 10,672,952$ 78 CITY OF CORCORAN, MINNESOTA STATEMENT OF CASH FLOWS (Continued) PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 See accompanying notes. 29 Nonmajor Water Fund Sewer Fund Storm Fund Totals RECONCILIATION OF NET OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net Operating Income (250,029)$ (186,174)$ -$ (436,203)$ Adjustments to Reconcile Net Operating Income to Net Cash Provided by Operating Activities: Depreciation Expense 163,374 216,349 - 379,723 Changes in Assets, Liabilities, and Deferrals: Accounts Receivable (454,694) (154,628) - (609,322) Prepaids 19,512 (28,950) - (9,438) Accounts Payable (1,507,948) 14,327 - (1,493,621) Salaries Payable 7,837 7,837 - 15,674 Payroll Deductions and Employer Contributions 1,188 1,188 - 2,376 Other Current Liabilities 1,635 - - 1,635 Net Pension Liability 23,227 23,227 - 46,454 Deferred Outflows of Resources - Pensions (16,954) (16,955) - (33,909) Deferred Inflows of Resources - Pensions 14,587 14,587 - 29,174 Compensated Absences 12,862 12,862 - 25,724 NET CASH PROVIDED BY OPERATING ACTIVITIES (1,985,403)$ (96,330)$ -$ (2,081,733)$ 79 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 30 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Corcoran, Minnesota (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The City of Corcoran operates under a Home Rule Charter form of government. The charter provides for citizen input for initiative, referendum, and recall. Under this plan, the City is governed by an elected mayor and four-member council. The City provides the following services: water, sewer, recreation, public improvements, public safety and general administrative services. 1.A. FINANCIAL REPORTING ENTITY The City’s financial reporting entity is comprised of the primary governmental unit of the City of Corcoran, Minnesota. In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 14, The Financial Reporting Entity, and includes all component units of which the City appointed a voting majority of the units’ board; the City is either able to impose its will on the unit or a financial benefit or burden relationship exists. Blended Component Units Blended component units are separate legal entities that meet the component unit criteria described above and whose governing body is the same or substantially the same as the City Council or the component unit provides services entirely to the City. These component units’ funds are blended into those of the City’s by appropriate activity type to compose the primary government presentation. Currently, the City has the following blended component unit : Economic Development Authority The City created an Economic Development Authority (EDA) by resolution of its City Council. The EDA may not exercise any of the powers enumerated by the authorizing statutes without prior approval of the Board of Commissioners. The activity of the EDA is blended and reported within the City’s governmental funds due to the financial benefit/burden relationship. The EDA has no activity during the year. Separate financial statements are not issued for this component unit. Discretely Presented Component Units Discretely presented component units are separate legal entities that meet the component unit criteria described above but do not meet the criteria for blending. Currently, the City does not have any discretely presented component units. 1.B. BASIS OF PRESENTATION Government-wide Financial Statements The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds (of which , the City has none). The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods and services. 80 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 31 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.B. BASIS OF PRESENTATION (Continued) Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets, deferred outflows, liabilities, deferred inflows, fund equity, revenues, and expenditures/expenses. Funds are organized into two major categories: governmental and proprietary. An emphasis is placed on major funds within the government al and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: • Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and • Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The City reports the following major governmental funds: The General Fund is the primary operating fund of the City and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds. The Debt Service Fund accounts for the accumulation of financial resources for the payment of interest and principal on general long-term debt of the City. Tax levies and special assessments are used for the payment of principal and interest on the City's indebtedness. The City has elected to present this fund as a major fund in the current year, despite the fund not meeting the quantitative criteria discussed above. The Park Capital Fund is a capital project fund used to account for the financial resources to be used for ongoing park improvement related projects. The City Center Drive Fund is a capital project fund used to account for the financial resources to be used for the City Center Drive road improvement project. The 2025A Bond Equipment Fund is a capital project fund used for the acquisition of capital assets from the 2025A bond proceeds. The City reports the following major proprietary funds: The Water Fund and Sewer Fund are used to account for business-like activities related to the operation of water and sewer systems provided to the general public. These activities are financed primarily by user charges, and the measurement of financial activity focuses on net income measurement similar to the private sector. 81 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 32 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.B. BASIS OF PRESENTATION (Continued) The City reports the following nonmajor governmental fund types: The Special Revenue Funds account for funds received by the City with a specific purpose. The Capital Project Funds account for financial resources to be used for the acquisition or construction of capital projects (other than capital projects funded by proprietary funds). The Enterprise Funds are used to account for business-like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. Change in Financial Reporting Entity There have been no changes to or within the financial reporting entity in comparison to the prior year. 1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined in the second bullet point below. In the fund financial statements, the current financial resources measurement focus or the economic resources measurement focus is used as appropriate: • All governmental funds utilize a current financial resources measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available financial resources at the end of the period. • The government-wide financial statements and proprietary funds utilize an economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position and cash flows. All assets, deferred outflows, liabilities and deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position. Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, liabilities and deferred outflows/inflows resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. All proprietary funds utilize the accrual basis of accounting. 82 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 33 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.D BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General Fund. The appropriated budgets are prepared by fund, function, and department. The City of Corcoran’s department heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) i s the department level. Appropriations in all budgeted funds lapse at the end of the fiscal year. Encumbrance accounting, under which purchase orders , contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropria tion, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to fac ilitate effective cash management. 1.E. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows, liabilities and deferred inflows, and disclosure of contingencies related to these balances at the date of the financial statements. Estimates also affect reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. 1.F. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY Cash and Cash Equivalents For purposes of the Statements of Net Position and proprietary funds Statement of Cash Flows, “cash and cash equivalents” includes all demand, savings and money market savings accounts for the City. Investments Investments are stated at their fair value as determined in accordance with the fair value hierarchy. Short-term investments are reported at amortized cost, provided that the fair value of those investments is not significantly affected by the impairment of the credit standing of the issuer or by other factors. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Investments that do not have an established market are reported at estimated fair value. Certificates of deposit are stated at cost, plus accrued interest, which approximates fair market value. Net appreciation (depreciation) in fair value of investments includes net unrealized and realized gains and losses. Purchases and sales of securities are recorded on a trade-date basis. See Note 2.A. for additional information related to Cash, Cash Equivalents, and Investments. Interfund Receivables and Payables During the course of operations, transactions occur between individual funds that may result in amounts owed be tween funds. Those related to goods and services type transactions are classified as “due to and from other funds.” Short -term interfund loans are reported as “due to and from other funds.” Long-term interfund loans are reported as “advances to and from other funds.” Interfund receivables and payables between funds within governmental activities, as well as interfund receivables and payables between funds within business-type activities, are eliminated in the Statement of Net Position. See Note 2.D. for details of interfund transactions, including receivables and payables at year-end. 83 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 34 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.F. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY (Continued) Receivables In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable and are not deemed necessary at year end. Major receivable balances for the governmental activities include taxes, special assessments a nd charges for services. Business-type activities report utility charges and assessments as their major receivables. In the fund financial statements, material receivables in governmental funds include revenue accruals such as taxes, assessments, other intergovernmental revenues, fines and charges for services since they are usually both measurable and available. Reven ues collectible but not available are deferred in the fund financial statements in accordance with the modified accrual basis, bu t not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Utility accounts receivable and assessments compose the majority of proprietary fund receivables. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. No allowances are deemed necessary at year -end. Prepaids Prepaids represent expenditures/expenses paid during the current year to be recognized in future periods. Capital Assets The accounting treatment over property, plant, equipment, and infrastructure (capital assets) depends on whether the assets are used in governmental or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. Capital assets are defined by the City as assets with an estimated useful life in excess of one year and an initial, individual cost exceeding various thresholds. These thresholds and the range of estimated useful lives by type of asset are as follows: Asset Type Threshold Useful Lives Land $1 Indefinite Land Improvements $10,000 5-30 years Buildings and Improvements $15,000 7-40 years Infrastructure $50,000 15-50 years Roads and Other Construction $25,000 20-40 years Machinery and Equipment $5,000 5-20 years Vehicles $5,000 3-10 years Government-wide Statements In the government-wide financial statements, capital outlay expenditures are accounted for as capital assets. All capital assets are valued at historical cost or estimated historical cost if actual is unavailable, except for donated capital assets which are recorded at their estimated acquisition value at the date of donation. Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation and amortization reflected in the Statement of Net Position. Depreciation and amortization are provided over the assets’ estimated useful lives using the straight-line method of depreciation. Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements. 84 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 35 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.F. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY (Continued) Accounts Payable Payables in the governmental and proprietary funds are composed almost entirely of payables to vendors. Deposits Payable Liability balances recorded for deposits payable at year-end consist of escrow balances received from local developers and others within the community. Upon satisfying the pre-established terms of the escrow arrangement, these balances are to be repaid by the City. Compensated Absences The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rend ered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be us ed as time off or settled (paid) during or upon separation from employment. Based on the criteria, the PTO, sick leave, and compensatory leave balances accumulated by City employees qualify for liability recognition as compensated absences. The liability for compensated absences is reported as incurred in the proprietary fund and government-wide financial statements. The liability for compensated absences includes salary-related benefits, where applicable. Postemployment Benefits Other Than Pensions (OPEB) Under the provisions of the various employee contracts, the City provides health insurance coverage for varying lengths of time if certain age and minimum years of service requirements are met. The liability recognized by the City for these future benefits has been actuarially determined and reported in accordance with GASB Statement 75. Long-Term Debt The accounting treatment of long-term debt depends on whether the liabilities were incurred in relation to governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. All long-term debt to be repaid from governmental and business-type resources is reported as liabilities in the government-wide statements. The long-term debt consists primarily of general obligation bonds and notes. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government-wide statements. Net Pension Asset/Liability The net pension liability represents the City’s allocation of its pro -rata share of the net pension liabilities of the Statewide pension plans administered by the Public Employees Retirement Administration. PERA For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA . For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 85 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 36 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.F. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY (Continued) Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This element represents a consumption of net position that applies to future periods and, therefore, will not be recognized as an outflow of resources (expense) until that time. The City reports deferred outflows of resources in the government-wide and proprietary funds Statements of Net Position in relation to the activity of the pension funds in which City employees participate. In addition to liabilities, the Statements of Net Position and Balance Sheet report a separate section for deferred inflows of resources. This element represents an acquisition of net position or fund balance that applies to future periods and, therefore, will not be recognized as an inflow of resources (revenue) until that time. The City reports property taxes, special assessments and other receivables as deferred inflows of resources in the governmental fund financial statements, in accordance with the modified accrual basis of accounting. Accordingly, such amounts are deferred and recognized as inflows of resources in the period tha t they become available. In addition, the City reports deferred inflows of resources in the government -wide and proprietary funds Statements of Net Position in relation to the activity of the pension fund plans in which City employees participate. See Note 3 for additional information pertaining to the deferred outflows and deferred inflows recorded to account for pensio n activities. Equity Classifications Government-wide Statements Equity is classified as net position and displayed in three components: Net Investment in Capital Assets – Consists of capital assets, including restricted capital assets, net of accumulated depreciation and amortization, and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets. Restricted – Consists of net position with constraints placed on the use either by 1) external groups such as creditors, grantors, contributors or laws or regulations of other governments; or 2) law through constitutional provisions or enabling legislation . Unrestricted – Remaining balance of net position that does not meet the definition of “restricted” or “net investment in capital assets.” It is the City’s policy to consider restricted net position to its depletion before unrestricted net position is applied. Fund Statements Governmental Fund Financial Statements – In the fund financial statements, governmental funds report fund balances as either nonspendable, restricted, committed, assigned or unassigned. When the City incurs an expenditure for which it may use either restricted or unrestricted fund balances, it uses restricted fund balances first unless unrestricted fund balances will have to be returned because they were not used. When the City incurs an expenditure for purposes for which amounts in any unrestricted fund balance classification could be used, it uses fund balances in the following order: Committed, assigned, unassigned. Nonspendable – Includes amounts that cannot be spent because they are either not in spendable form, or legally or contractually required to be maintained intact. The nonspendable fund balances at December 31, 2025 consist of prepaid expenditures. Restricted – The portion of fund balance which is not available for appropriation, or which has been legally segregated for a specific purpose. 86 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 37 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.F. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND EQUITY (Continued) Committed – Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, which is the highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the City Council modifies or rescinds the commitment by resolution. Assigned – Amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The City Administrator shall have the authority to assign fund balance. Unassigned – This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. The City has formally adopted a policy under which it strives to maintain a minimum unassigned General Fund balance of not less than 42 percent (approximately 5 months) of the General Fund’s budgeted operating expenditures for the following year. See Note 2.E. for additional disclosures. Proprietary Fund Financial Statements – Proprietary fund equity is classified the same as in the government-wide statements, as described on the previous page. 1.G. REVENUES, EXPENDITURES, AND EXPENSES Property Tax Under State law, municipalities are limited in their ability to levy a property tax. The City levies its property tax for the subsequent year during the month of December. Hennepin County is the collecting agency for the levy and remits the collections to the City. In the fund financial statements, property taxes are recorded as revenue in the period levied to the extent they are collected within 60 days of year-end. December 31st is the last day the City can certify a tax levy to the County for collection the following year. The County creates the tax list for all taxable property in the City and applies the applicable tax rate to the tax capacity of individual prope rties to arrive at the actual tax for each property. The County also collects all special assessments, except for certain prepayments paid directly to the City. The County collects all taxes and assessments, except as noted above. The County mails copies of all real estate and personal property tax statements. Each year, property owners are required to pay one half of their real estate taxes by May 15 and the balance by October 15. Penalties and interest are assessed to property owners who do not pay their property taxes and special assessments by the due dates. Delinquent taxes receivable includes the past six years’ uncollected taxes. Delinquent taxes have been offset by deferred inflows of resources for taxes not received within 60 days after year end in the fund financial statements. Special Assessments Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consis tent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Audi tor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Within the government-wide financial statements, the City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. 87 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 38 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 1.G. REVENUES, EXPENDITURES AND EXPENSES (Continued) Within the governmental fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent sp ecial assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the Cou nty and remitted by December 31st (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred, and special deferred assessments receivable in governmental funds are completely offset b y deferred inflows of resources. Program Revenues Program revenues reported in the government-wide financial statements include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided or fines imposed by a given function or segme nt, and (2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other inter nally dedicated resources are reported as general revenues rather than as program revenues. Operating Revenues and Expenses Operating revenues and expenses for proprietary funds are those that result from providing services and producing and deliver ing goods and/or services. It also includes all revenue and expenses not related to capital and noncapital financing or investin g activities. Expenditures/Expenses In the government-wide financial statements, expenses are classified by function for both governmental and business -type activities. In the fund financial statements, expenditures are classified as follows: Governmental Funds - By Character Current (further classified by Function) Capital Outlay Debt Service Proprietary Funds - By Operating and Nonoperating In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources. Interfund Transfers Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers. For the purpose of the Statement of Activities, all interfund transfers between individual governmental funds, as well as all interfund transfer s between individual proprietary funds, have been eliminated. See additional information at Note 2.D. 88 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 39 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS The following notes present detailed information to support the amounts reported in the basic financial statements for its various assets, liabilities, deferred outflows/inflows of resources, equity, revenues, and expenditures/expenses. 2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS Deposits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that all City 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 (100 percent if collateral pledge d is irrevocable standby letters of credit issued by the Federal Home Loan Bank). The City complies with such laws. 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; • A general obligation of a state or local government, with taxing powers, rated “A” or better; • A revenue obligation of a state or local government, with taxing powers, rated “AA” or better; • Unrated general obligation securities of a local government, with taxing powers, pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letter of credit issued by a Federal Home Loan Bank accompanied by written evidence that the Federal Home Loan Bank’s public debt is rated “AA” or better by Moody’s or Standard and Poor’s; or • Time deposits 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 City. At December 31, 2025, the City’s deposits, including certificates of deposit, were not exposed to custodial credit risk. The City’s deposits were sufficiently covered by both federal depository insurance and collateral held by the City’s agent in the City’s name. Investments The City may also invest idle funds as authorized by Minnesota Statutes as follows: direct obligations guaranteed by the Unit ed States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that received the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of t he investments have a final maturity of 13 months or less; general obligations rated “A” or better; revenue obligations rated “AA” or better; general obligations of the Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase 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 $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City does not have any investment policies that would further limit investment choices. 89 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 40 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) Investment balances at December 31, 2025 are as follows: S & P's Credit Fair Value Fair Less Rating Level Value Than 1 1 - 5 Pooled Investments 4M Money Market Accounts N/A N/A 10,169,012$ 10,169,012$ -$ 4M Term Series N/A N/A 4,300,000 2,500,000 1,800,000 Non-pooled Investments Municipal Bonds AA- to AAA Level 2 698,716 - 698,716 U.S. Government Securities AA+Level 1 825,083 - 825,083 Certificates of Deposit N/A Level 1 7,390,283 2,884,873 4,505,410 Money Market Mutual Funds N/A Level 1 1,447,186 1,447,186 - Totals 24,830,280$ 17,001,071$ 7,829,209$ Investment (in Years) Investment Type Maturities The investments of the City are subject to the following risks: • 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 as indicated in the table above. Minnesota Statutes limit the City’s investments. • Custodial credit risk is the risk that in the event of a failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City does not have a formal investment policy to address custodial credit risk but typically limits its exposure by purchasing insured or registered investments. • Concentration of credit risk is the risk associated with investing a significant portion of the City’s investments (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as treasuries), investment pools and mutual funds. The City has no formal policy limiting the amounts that may be invested in any one issuer. • Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City has no formal policy to address interest rate risk. The City categorizes its fair value measurements within the fair value hierarchy established by accounting principles general ly accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of t he 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. See the table above for the City’s recurring fair value measurements as of December 31, 2025. The 4M Municipal Money Market and 4M Term Series funds are external investment pools not registered with the Securities Exchange Commission (SEC) that follow the same regulatory rules of the SEC under rule 2a7. The fair value of the position in the pools is the same as the value of the pool shares. The investment in the 4M pooled funds is not subject to the credit risk classifications as noted in GASB Statement No. 72. 90 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 41 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.A. CASH, CASH EQUIVALENTS, AND INVESTMENTS (Continued) Deposits and Investments Summary The following is a summary of total cash, cash equivalents and investments: Carrying Amount of Deposits 4,982,434$ Investments 24,830,280 Total 29,812,714$ A reconciliation of cash, cash equivalents and investments are as follows: Government-wide Cash, Cash Equivalents, and Investments 29,812,714$ 91 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 42 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.B. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2025 is as follows: Balance at Balance at 01/01/25 Additions Disposals Transfers 12/31/25 Governmental Activities: Capital Assets not Being Depreciated or Amortized Land 3,700,474$ -$ -$ -$ 3,700,474$ Construction In Progress 8,835,455 3,769,317 - (4,826,130) 7,778,642 Total Capital Assets not Being Depreciated or Amortized 12,535,929 3,769,317 - (4,826,130) 11,479,116 Capital Assets Being Depreciated and Amortized Buildings 6,040,677 - - - 6,040,677 Infrastructure 12,664,468 236,397 - 4,826,130 17,726,995 Equipment 7,546,206 2,612,058 (299,883) - 9,858,381 Leased Equipment - 56,077 - - 56,077 Total Capital Assets Being Depreciated and Amortized 26,251,351 2,904,532 (299,883) 4,826,130 33,682,130 Less: Accumulated Depreciation Buildings (2,959,884) (180,413) - - (3,140,297) Infrastructure (2,160,152) (422,449) - - (2,582,601) Equipment (4,736,994) (644,644) 127,909 - (5,253,729) Less: Accumulated Amortization Leased Equipment - (10,281) - - (10,281) Total Accumulated Depreciation and Amortization (9,857,030) (1,257,787) 127,909 - (10,986,908) Total Capital Assets Being Depreciated and Amortized, Net 16,394,321 1,646,745 (171,974) 4,826,130 22,695,222 Capital Assets, Net 28,930,250$ 5,416,062$ (171,974)$ -$ 34,174,338$ Depreciation is charged to governmental activities as follows: General Government 27,966$ Public Safety 198,761 Public Works 988,006 Parks and Recreation 43,054 Total Depreciation Expense 1,257,787$ 92 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 43 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.B. CAPITAL ASSETS (Continued) Balance at Balance at 01/01/25 Additions Disposals Transfers 12/31/25 Business-Type Activities: Capital Assets not Being Depreciated Land 647,509$ -$ -$ -$ 647,509$ Construction In Progress 24,599,349 2,925,517 - - 27,524,866 Total Capital Assets not Being Depreciated 25,246,858 2,925,517 - - 28,172,375 Capital Assets Being Depreciated Infrastructure 10,821,769 - - - 10,821,769 Equipment 173,746 173,859 - - 347,605 Total Capital Assets Being Depreciated 10,995,515 173,859 - - 11,169,374 Less: Accumulated Depreciation Infrastructure (2,620,577) (360,726) - - (2,981,303) Equipment (23,034) (18,997) - - (42,031) Total Accumulated Depreciation (2,643,611) (379,723) - - (3,023,334) Total Capital Assets Being Depreciated, Net 8,351,904 (205,864) - - 8,146,040 Capital Assets, Net 33,598,762$ 2,719,653$ -$ -$ 36,318,415$ Depreciation is charged to business type activities as follows: Water 163,374$ Sewer 216,349 Total Depreciation Expense 379,723$ 93 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 44 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.C. NONCURRENT LIABILITIES Debt Detail General Obligation Bonds The City of Corcoran issues general obligation bonds to finance the acquisition and construction of major capital facilities and infrastructure throughout the City. General obligation bonds have been issued for activities pertaining to governmental operations. General obligation bonds and direct obligations and pledge the full faith and credit of the City of Corcoran. General obligation bonds at December 31, 2025 consist of the following: Governmental Activities Issue Original Annual Interest Maturity Remaining Date Amount Payment Rate(s)Date Amount 05/16 290,000$ $30,000 - $35,000 2.00 - 2.40%02/26 35,000$ 05/16 2,625,000 $55,000 - $250,000 2.00 - 2.40%02/32 790,000 05/18 600,000 $60,000 - $75,000 3.00 - 3.125%02/28 215,000 05/18 1,235,000 $65,000 - $100,000 3.00 - 3.125%02/34 805,000 07/20 805,000 $80,000 - $95,000 2.00%02/30 465,000 11/20 3,365,000 $145,000 - $245,000 1.00 - 2.00%02/38 2,720,000 06/22 1,800,000 $170,000 - $230,000 3.125 - 4.00%02/32 1,455,000 05/23 3,760,000 $185,000 - $310,000 4.00 - 5.00%02/39 3,575,000 04/25 3,695,000 $75,000 - $425,000 4.00 - 5.00%02/41 3,695,000 Total Governmental Activities G.O. Bonds Payable 13,755,000$ General Obligation Bonds Years Ending December 31, Principal Interest Total 2026 1,075,000$ 526,099$ 1,601,099$ 2027 1,420,000 438,558 1,858,558 2028 1,285,000 388,848 1,673,848 2029 1,255,000 339,828 1,594,828 2030 1,300,000 290,913 1,590,913 2031-2035 4,840,000 841,321 5,681,321 2036-2040 2,490,000 177,703 2,667,703 2041 90,000 1,797 91,797 Totals 13,755,000$ 3,005,067$ 16,760,067$ Future Debt Service Requirements General Obligation Bonds 94 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 45 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.C. NONCURRENT LIABILITIES (Continued) General Obligation Revenue Bonds The City of Corcoran issues general obligation revenue bonds to finance the construction and improvement of utilities infrastructure and facilities throughout the City. General obligation revenues bonds have been issued for activities pertaini ng to business-type operations. They will be repaid from future net revenue pledged from the Water and Sewer funds and are backed by the full faith and credit of the City of Corcoran. General obligation revenue bonds at December 31, 2025 consist of the following: Business-Type Activities Issue Original Annual Interest Maturity Remaining Date Amount Payment Rate(s)Date Amount 08/14 3,130,000$ $85,000 - $190,000 2.00 - 3.625%02/35 1,755,000$ 07/20 1,145,000 $105,000 - $125,000 2.00%02/31 715,000 05/23 21,785,000 $370,000 - $1,210,000 4.00 - 5.00%02/53 20,820,000 Total Business-Type Activities G.O. Revenue Bonds Payable 23,290,000$ General Obligation Revenue Bonds Years Ending December 31, Principal Interest Total 2026 670,000$ 929,175$ 1,599,175$ 2027 690,000 901,925 1,591,925 2028 720,000 873,550 1,593,550 2029 745,000 843,756 1,588,756 2030 775,000 812,463 1,587,463 2031-2035 3,760,000 3,577,756 7,337,756 2036-2040 3,360,000 2,860,600 6,220,600 2041-2045 4,095,000 2,117,500 6,212,500 2046-2050 4,980,000 1,212,600 6,192,600 2051-2053 3,495,000 213,300 3,708,300 Totals 23,290,000$ 14,342,625$ 37,632,625$ Future Debt Service Requirements G.O. Revenue Bonds 95 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 46 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.C. NONCURRENT LIABILITIES (Continued) Lease Liabilities The City currently leases tasers for the use of the City’s police department. Because of the nature of the terms of the lease, a long- term lease liability has been recorded in an amount equal to the present value to the future lease payments. Additionally, corresponding right-of-use assets have been recorded and incorporated into the City’s capital asset records. Terms of the City’s leasing arrangements as of December 31, 2025 consist of the following: Governmental Activities Issue Original Annual Interest Maturity Remaining Date Amount Payment Rate(s)Date Amount 02/25 56,077$ $10,582 - $11,895 2.925%02/29 44,247$ Lease Liabilities Years Ending December 31, Principal Interest Total 2026 10,582$ 1,312$ 11,894$ 2027 10,895 998 11,893 2028 11,218 675 11,893 2029 11,552 342 11,894 Totals 44,247$ 3,327$ 47,574$ Future Debt Service Requirements Lease Liabilities Notes Payable The City has the following notes payable outstanding at year-end for water connection charges: Business-Type Activities Issue Original Annual Interest Maturity Remaining Date Amount Payment Rate(s)Date Amount 01/13 300,000$ $11,570 - $38,151 5.50%12/27 73,989$ 02/16 117,790 $11,779 0.00%01/27 23,558 Total Business-Type Activities Notes Payable 97,547$ Notes Payable Years Ending December 31, Principal Interest Total 2026 47,617$ 3,566$ 51,183$ 2027 49,930 1,251 51,181 Totals 97,547$ 4,817$ 102,364$ Future Debt Service Requirements Notes Payable 96 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 47 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.C. NONCURRENT LIABILITIES (Continued) Changes in Noncurrent Liabilities The following is a summary of changes in noncurrent liabilities, excluding the net pension and OPEB liabilities, for the year ended December 31, 2025: Amounts Due Balance Balance Within Type of Debt 1/1/2025 Additions Deductions 12/31/2025 One Year Governmental Activities: General Obligation Bonds 11,105,000$ 3,695,000$ (1,045,000)$ 13,755,000$ 1,075,000$ Lease Liabilities - 56,077 (11,830) 44,247 10,582 Unamortized Bond Premium 536,095 276,657 (67,972) 744,780 - Compensated Absences 468,720 - (11,469) 457,251 201,190 Total 12,109,815$ 4,027,734$ (1,136,271)$ 15,001,278$ 1,286,772$ Business-Type Activities: G.O. Revenue Bonds 23,930,000$ -$ (640,000)$ 23,290,000$ 670,000$ Unamortized Bond Premium 951,440 - (40,802) 910,638 - Notes Payable 143,270 - (45,723) 97,547 47,617 Compensated Absences - 25,724 - 25,724 11,318 Total 25,024,710$ 25,724$ (726,525)$ 24,323,909$ 728,935$ Governmental activity general obligation bonds are typically funded through the Debt Service Funds, while the lease liabilities are funded through the General Fund. Business-type activity debt is funded through the Water and Sewer Funds. The change in compensated absences displayed above has been presented on a net basis. Interest expense totals $1,341,236 in the Statement of Activities (included in the Debt Service, Water, and Sewer lines). Interest expenditures total $331,245 for the Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds (included in the line Interest and Other Charges) and $909,632 in the Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds (included in the line Interest and Other Charges). 97 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 48 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.D. INTERFUND TRANSACTIONS AND BALANCES Operating transfers consist of the following for the year ended December 31, 2025: Transfers Out Total General Fund 490,972$ -$ -$ -$ 490,972$ 490,972$ Water Fund 626,243 250,000 376,243 - - 626,243 Sewer Fund 1,046,038 249,818 796,220 - - 1,046,038 Governmental 957,740 - - 957,740 - 957,740 3,120,993$ 499,818$ 1,172,463$ 957,740$ 490,972$ 3,120,993$ Major Funds Transfers In Nonmajor Funds Major Funds General Fund Debt Service Fund City Center Drive Fund Nonmajor Govern- mental Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the fund that statut e or budget require to expend them and to (b) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. The interfund balances at December 31, 2025 are as follows: Due To Fund Due From Fund Amount Reason General Fund Pavement Management Fund 229,214$ Eliminate fund cash deficit Government Fund Elimination (229,214) Government-wide Internal Balances -$ Short-Term Balances Interfund balances for the cash deficits above are to be repaid as cash flows become available from charges for services, pro perty taxes, or State aids. 98 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 49 NOTE 2 DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS (Continued) 2.E. FUND EQUITY At December 31, 2025, governmental fund equity consists of the following: Nonspendable Restricted Committed Assigned Unassigned General Fund Nonspendable - Prepaids 42,857$ -$ -$ -$ -$ Restricted for Capital Outlay - 160,640 - - - Unassigned - - - - 4,951,290 Total General Fund Balance 42,857$ 160,640$ -$ -$ 4,951,290$ Debt Service Fund Restricted for Debt Service -$ 1,775,000$ -$ -$ -$ Park Capital Fund Restricted for Parks (Park Dedication Fees)-$ 3,557,997$ -$ -$ -$ City Center Drive Fund Restricted for Capital Improvements -$ 1,255,781$ -$ -$ -$ 2025A Bond Equipment Fund Restricted for Capital Outlay -$ 1,387,814$ -$ -$ -$ Nonmajor Governmental Funds Restricted for Police Expenditures -$ 12,445$ -$ -$ -$ Restricted for Lawful Gambling Purposes - 251,185 - - - Restricted for Capital Equipment - 46,315 - - - Restricted for Hackamore Road Improvements - 72,553 - - - Restricted for Wetland Restoration - 112,944 - - - Restricted for Pulte Encore Development - 162,666 - - - Committed for Police Expenditures - - 41,747 - - Committed for Truck Safety - - 4,434 - - Committed for Emergency Sirens - - 134,575 - - Assigned for Long Range Capital Planning - - - 2,092,846 - Assigned for Public Works Facility - - - 57,195 - Unassigned - - - - (295,188) Total Nonmajor Governmental Funds Balance -$ 658,108$ 180,756$ 2,150,041$ (295,188)$ Additionally, nonmajor funds with deficit fund balances at December 31, 2025 are as follows: Fund Deficit Pavement Management Fund (295,188)$ Nonmajor Governmental Funds 99 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 50 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE Plan Description The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered according to Minnesota Statutes chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes chapter 356 defines each plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. General Employees Retirement Plan (General Plan) Membership in the General Plan includes employees of counties, cities, townships, schools in non-certified positions, and other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion criteria. Public Employees Police and Fire Retirement Plan (Police and Fire Plan) Membership in the Police & Fire Plan includes full-time, licensed police officers and firefighters who meet the membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other PERA retirement plan or a local relief association for the same service. Employers can provide Police & Fire Plan coverage for part -time positions and certain other public safety positions by submitting a resolution adopted by the entity’s governing body. The resolution must state that the position meets plan requirements. Benefits Provided PERA provides retirement, disability, and death benefits. Benefit provisions are established by State Statute and can only be modified by the State Legislature. Vested, terminated employees who are entitled to benefits, but are not receiving them yet , are bound by the provisions in effect at the time they last terminated their public service. When a member is “vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age with at least one year of service qualify for a retirement benefit. General Employees Plan Benefits General Employees Plan requires three years of service to vest. Benefits are based on a member’s highest average salary for a ny five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compu te benefits for General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level formulas. Onl y the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan members receive 1.20 percent of the highest average salary for each of the first 10 years of service and 1.70 percent for each additional year. Un der the Level formula, General Plan members receive 1.70 percent of highest average salary for all years of service. For members hire d 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 0.25 percent for each month under age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25 percent for each month the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial reduction applied to the benefit. Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of the cost-of- living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a maximum of 1.50 percent. The 2025 annual increase was 1.25 percent. Recipients that have been receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the effective date of the increase will receive a prorated increase. 100 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 51 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) Police and Fire Plan Benefits Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members hired o n or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years. After five year s, vesting increase by 10 percent each full year of service until members are 100 percent vested after ten years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits are reduced by 0.417 percen t each month members are younger than age 55. Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 .00 percent. Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but less than 36 months as of t he June 30 before the effective date of the increase will receive a prorated increase. Contributions Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee contributions. Contribution rates can only be modified by the State Legislature. General Employees Fund Contributions General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2025, and the City was required to contribute 7.50 percent for General Plan members. The City’s contributions to the General Employees Fund for the year ended December 31, 2025 were $220,815. The City’s contributions were equal to the required contributions as set by State Statute. Police and Fire Fund Contributions Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2025, and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2025 were $282,394. The City’s contributions were equal to the required contributions as set by State Statute. Pension Costs General Employees Fund Pension Costs At December 31, 2025, the City reported a liability of $903,092 for its proportionate share of the General Employees Fund’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity, and the State’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated with the City totaled $21,785. City’s proportionate share of the net pension liability $903,091 State of Minnesota’s proportionate share of the net pension liability associated with the City 21,785 Total $924,876 101 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 52 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) 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 liabil ity 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 PERA’s participating employers. The City’s proportionate share was 0.0273 percent at the end of the measurement period and 0.0232 percent for the beginning of the period. For the year ended December 31, 2025, the City recognized pension expense of $131,046 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $4,360 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2025, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences Between Expected and Actual Economic Experience 86,045$ -$ Change in Actuarial Assumptions 21,759 207,798 Difference Between Projected and Actual Investment Earnings - 359,349 Changes in Proportionate Share 245,124 - Contributions Paid to PERA Subsequent to the Measurement Date 115,634 - Total City Deferred Outflows/Inflows 468,562$ 567,147$ The $115,634 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31, Pension Expense 2026 18,426$ 2027 (104,047)$ 2028 (64,405)$ 2029 (64,193)$ 102 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 53 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) Police and Fire Fund Pension Costs At December 31, 2025, the City reported a liability of $1,158,068 for its proportionate share of the Police and Fire Fund’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 from 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 0.0988 percent at the end of the measurement period and 0.0940 percent for the beginning of the period. The State of Minnesota contributed $18 million to the Police and Fire Fund 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 mill ion 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, b y October 1 of each year, the state will pay $26.7 million to the Police and Fire Fund until the fund is 110 percent 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 percent 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 $40,144. City’s proportionate share of the net pension liability: $1,158,067 State of Minnesota’s proportionate share of the net pension liability associated with the City 40,144 Total $1,198,211 For the year ended December 31, 2025, the City recognized pension expense $355,268 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $8,896 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 Police and Fire Fund special funding situation. The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid because this contribution was not considered to meet the definition of a special funding situation. The City recognized $26,390 for the year ended December 31, 2025 as revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on -behalf contributions to the Police and Fire Fund. At December 31, 2025, the City reported its proportionate share of the Police and Fire Plan’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Differences Between Expected and Actual Economic Experience 535,064$ -$ Change in Actuarial Assumptions 878,186 1,451,010 Difference Between Projected and Actual Investment Earnings - 516,862 Changes in Proportionate Share 292,918 28,693 Contributions Paid to PERA Subsequent to the Measurement Date 147,570 - Total City Deferred Outflows/Inflows 1,853,738$ 1,996,565$ 103 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 54 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) The $147,570 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31, Pension Expense 2026 341,620$ 2027 (158,373)$ 2028 (501,793)$ 2029 (16,102)$ 2030 44,251$ Long-Term Expected Return on Investment The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long -term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are summarized in the following table: Long-Term Expected Real Rate of Return Asset Class Target Allocation Domestic Equity 33.5% 5.10% International Equity 16.5% 5.30% Fixed Income 25.0% 0.75% Private Markets 25.0% 5.90% Total 100% 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 7.00 percent. The 7.00 percent assumption is based on a review of inflation and investment r eturn assumptions from a number of national investment consulting firms. The review provided a range of investment return rate s considered reasonable by the actuary. An investment return of 7.00 percent is within that range. Inflation is assumed to be 2.25 percent for the General Employees Plan and Police and Fire Plan. Benefit increases after retirement are assumed to be 1.50 percent for the General Employees Plan and 1.00 percent for the Police and Fire Plan. Salary growth assumptions in the General Employees Plan range in annual increments from 11.50 percent after one year of service to 3.00 percent after 27 years of service. In the Police and Fire Plan, salary growth assumptions range from 10.75 percent after one year of service to 3.00 percent after 2 3 years of service. 104 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 55 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023 actuarial valuation. The Police & Fire Plan was reviewed in 2024. The assumption changes were adopted by the board and became effective with the July 1, 2025 actuarial valuation. The following changes in actuarial assumptions and plan provisions occurred in 2025: General Employees Fund Changes in Actuarial Assumptions: • The combined service annuity loading factors increased from 15 percent to 19 percent for vested terminated members and from 3 percent to 44 percent for non-vested, terminated members. • The assumed post-retirement benefit increase changed from 1.25 percent to 1.50 percent. Changes in Plan Provisions: • The post-retirement benefit increase formula changed to 100 percent of the Social Security annual increase, between 1.00 percent and 1.75 percent, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85 percent for the last two consecutive annual valuations or is less than 80 percent in the most recent actuarial valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was 50 percent of the Social Security annual increase, between 1.00 percent and 1.50 percent. • The 1 percent additional employer contribution is eliminated when the plan reaches 98 percent funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100 percent funded status. Police and Fire Fund Changes in Actuarial Assumptions: • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. • Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70 percent to 65 percent. • 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 percent to 13 percent for vested, terminated members and from 2 percent to 38 percent for non-vested, terminated members. 105 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 56 NOTE 3 DEFINED BENEFIT PENSION PLANS - STATEWIDE (Continued) 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 percent to 3 percent; subsequent January 1 increases will be 1 percent. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90 percent funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100 percent funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). • The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100 percent funded for a minimum of three consecutive years to 110 percent funded for a minimum of three consecutive years (on an actuarial value of assets basis). • An additional $17.7 million in direct state aid will be paid annually each October 1 beginning October 1, 2025 through June 30, 2048. • Joint and survivor actuarial equivalent factors were updated to reflect changes in assumptions. Discount Rate The discount rate used to measure the total pension liability in 2025 was 7.00 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees Fund and the Police and Fire Fund were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long -term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Pension Liability Sensitivity The following table presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pensi on liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: 1% Increase in Discount Rate 8.00%(143,694)$ 8.00%(382,683)$ Current Discount Rate 7.00%903,091$ 7.00%1,158,067$ 1% Decrease in Discount Rate 6.00%2,193,468$ 6.00%3,034,382$ General Employees Fund Police and Fire Fund Sensitivity Analysis Net Pension Liability at Different Discount Rates 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. 106 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 57 NOTE 4 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description The City administers a single-employer defined benefit healthcare plan (the Plan), through which the City provides postemployment benefits to eligible retirees and their spouses. As of the most recent actuarial valuation date, there are 3 active employees electing coverage and 4 retirees electing coverage. The Plan does not issue a publicly available financial report. Benefits Provided The City offers continuing group health insurance coverage after retirement for qualifying City employees. For regularly retired Police Officers hired before January 1, 2013, who have a minimum of 15 years of service and their years of service plus age equal 75, the City pays 50% of the health insurance premiums. These City-paid subsidies towards eligible retired Police Officers are paid for 10 years or until they attain age 65, whichever is earliest. Other retirees meeting eligibility requirements are allowed to continue participating in the City’s group health insurance plan at their own cost, until they attain age 65. The City is legally required to include any retirees for who it provides health insurance coverage in the same insurance pool as its active employees until the retiree reaches Medicare eligibility, regardless of whether the premiums are paid by the City or t he retiree. Consequently, participating retirees are considered to receive a secondary benefit known as an “implicit rate subsid y.” This benefit arises from 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. Contributions The City funds these liabilities on a pay -as-you-go basis, in the amounts contractually required to satisfy the benefit terms discussed above. For the year ended December 31, 2025, the City’s average contribution rate was 1.48 percent of covered- employee payroll. For the year 2025, the City’s implicit contributions to the plan totaled $59,281. Net OPEB Liabilities, OPEB Expense, and Deferred Outflows/Inflows of Resources At December 31, 2025, the City reported a net OPEB liability of $1,391,363 for the City’s plan. The net OPEB liability was measured as of December 31, 2025, based upon an actuarial valuation as of December 31, 2024. For the year ended December 31, 2025, the City recognized OPEB expense of $359,828. In accordance with the Alternative Measurement Method, gains and losses due to experience and assumption changes are recognized immediately. In addition, there were no contributions paid by the City between the measurement date and reporting date, since the measurement date coincides with the reporting date . Therefore, there are no deferred outflows or inflows of resources related to OPEB reported as of December 31, 2025. 107 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 58 NOTE 4 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Changes in the Net OPEB Liability The following table summarizes changes in the net OPEB liability for the year ended December 31, 2025: Changes in Total OPEB Liability (TOL) Balance at January 1st 1,090,816$ Service Cost 5,871 Interest Cost 43,536 Changes in Assumptions 11,028 Differences between Expected and Actual Experience 299,393 Benefit Payments (59,281) Balance at December 31st 1,391,363$ Actuarial Assumptions The following is a summary of pertinent actuarial assumptions and methods utilized, applied to all periods included in the measurement, unless otherwise specified. Key Methods and Assumptions Used in Valuation of Total OPEB Liability Actuarial Information: Valuation Date December 31, 2024 Measurement Date December 31, 2025 Actuarial Cost Method Entry Age Normal, level percentage of pay Actuarial Assets None Actuarial Assumptions: Discount Rate 4.83% Salary Increases N/A Inflation 2.60% Medical Trend Rate 8.50% for in 2025, decreasing gradually to an ultimate rate of 4.00 percent by 2044. Significant changes in assumptions since the prior measurement date include: • The discount rate was changed from 4.08 percent to 4.83 percent based on updated 20-year municipal bond rates. • Medical trend was updated based on a recently published trend model and trend surveys to better reflect future anticipated experience. • Mortality, Termination and Salary Scale were updated based on the assumptions from the most recent PERA actuarial valuations. Changes in plan provisions since the prior measurement date include: • Medical premiums were updated to current levels. 108 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 59 NOTE 4 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (Continued) Net OPEB Liability Sensitivity The following presents the net OPEB liability, calculated using the discount rate disclosed in the preceding section, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate one percentage point lower or one percentage point higher than the current discount rate: Sensitivity of Net OPEB Liability at Current Single Discount Rate Rates Amounts 1% Increase in Discount Rate 5.83% $1,255,116 Current Discount Rate 4.83% $1,391,363 1% Decrease in Discount Rate 3.83% $1,552,348 The following presents the net OPEB liability, calculated using the healthcare cost trend rates disclosed in the preceding se ction, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current healthcare cost trend rates: Sensitivity of Net OPEB Liability at Current Healthcare Cost Trend Rate Amounts 1% Increase in Healthcare Trend Rates $1,560,228 Current Healthcare Trend Rates $1,391,363 1% Decrease in Healthcare Trend Rates $1,246,636 NOTE 5 OTHER NOTES 5.A. RISK MANAGEMENT Claims and Judgements The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omis sions; injuries to employees; and natural disasters. To manage these risks, the City purchases commercial insurance. The City retains risk for the deductible portions of the insurance. The amounts of these deductibles are considered immaterial to the financial statements. There were no significant reductions in insurance from the previous year settlements in excess of insurance for any of the past two years. Liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City’s management is not aware of any incurred but not reported claims. 5.B. DEFINED CONTRIBUTION PLAN The City provides eligible employees future retirement benefits through participations in the Minnesota Deferred Compensation Plan (MNDCP), which is a Section 457 plan administered by the Minnesota State Retirement System. Eligible employees of the City may begin participating in the MNDCP commencing on the date of their employment by electing to have a portion of their pay contributed to the Plan. Certain employees are eligible to receive a City match of employee contributions up to the qualifying amounts set forth in their employment contracts, and there are no vesting requirements related to such contributions. The City did not make any contributions to the Plan. 109 CITY OF CORCORAN, MINNESOTA NOTES TO THE BASIC FINANCIAL STATEMENTS DECEMBER 31, 2025 60 NOTE 5 OTHER NOTES (Continued) 5.C. COMMITMENTS Construction Projects At year-end, the City was completing several construction projects that continued into the following year. At December 31, 2025, remaining commitments for construction projects totaled $3,074,666, excluding retainage, which has been accrued for in these financial statements. 5.D. CORRECTION ERRORS During the current year ended December 31, 2025, the City determined adjustments to beginning equity were necessary to correct errors identified in the City’s prior year financial statements. Adjustments were recorded to correct misstatements as follow s: • In the prior year, accounts payable included balances for liabilities that no longer existed. • In the prior year, payroll liabilities were overstated in relation to certain benefit withholdings. The table below displays the impact of this adjustment on the prior year financial statements : Net Position Net Position or Fund Balance or Fund Balance 12/31/2024 Accounts Payroll 12/31/2024 As Previously Payable Accruals As Adjusted Reported Overstated Overstated or Restated Government-Wide Governmental Activities 28,065,064$ 58,459$ 29,588$ 28,153,111$ Governmental Funds Major Funds: General Fund 4,583,379$ 58,459$ 29,588$ 4,671,426$ Error Corrections The impact on the prior year’s results of operations could either not feasibly be determined or was not significant. 5.E. SUBSEQUENT EVENTS Subsequent to year-end and prior to the issuance of these financial statements, the City approved a construction contract for a local park in the amount of approximately $689,000. The City also approved the purchase of a dump truck at an estimated cost of $350,000. 110 61 REQUIRED SUPPLEMENTARY INFORMATION 111 CITY OF CORCORAN, MINNESOTA BUDGETARY COMPARISON SCHEDULE – GENERAL FUND FOR THE YEAR ENDED DECEMBER 31, 2025 62 Budget Actual Variance with Amounts - Amounts Budget Original and Budgetary Over Final Basis (Under) REVENUES Taxes Property Taxes 7,974,335$ 7,979,413$ 5,078$ Franchise Taxes 65,000 69,848 4,848 Total Taxes 8,039,335 8,049,261 9,926 Special Assessments - 3,755 3,755 Licenses and Permits 1,582,000 1,979,080 397,080 Intergovernmental Revenue State Revenue Market Value Credit 30,000 22,316 (7,684) Police and Fire Aid 120,000 160,528 40,528 Other State Grants and Aids 424,131 461,870 37,739 County Revenue Other County Grants and Aids 24,000 17,953 (6,047) Total Intergovernmental Revenue 598,131 662,667 64,536 Charges for Services General Government 64,800 76,180 11,380 Police and Fire Contracts 16,500 32,862 16,362 Streets and Highways 59,000 62,643 3,643 Parks and Recreation 45,000 9,860 (35,140) Total Charges for Services 185,300 181,545 (3,755) Fines and Forfeitures 30,000 31,490 1,490 Miscellaneous Revenue Investment Earnings 25,000 113,511 88,511 Refunds and Reimbursements 5,000 78,824 73,824 Contributions and Donations 1,250 1,505 255 Other Miscellaneous 5,000 12,460 7,460 Total Miscellaneous Revenue 36,250 206,300 170,050 TOTAL REVENUES 10,471,016 11,114,098 643,082 112 CITY OF CORCORAN, MINNESOTA BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (Continued) FOR THE YEAR ENDED DECEMBER 31, 2025 63 Budget Actual Variance with Amounts - Amounts Budget Original and Budgetary Over Final Basis (Under) EXPENDITURES General Government Mayor and Council 27,135 22,877 (4,258) Administration and Finance 873,208 879,009 5,801 Other General Government 1,550,442 1,730,743 180,301 Total General Government 2,450,785 2,632,629 181,844 Public Safety Police Current 3,368,375 3,309,512 (58,863) Capital Outlay - 56,078 56,078 Fire Current 678,379 679,103 724 Other Public Safety Current 794,017 1,092,066 298,049 Total Public Safety 4,840,771 5,136,759 295,988 Public Works Street Maintenance and Storm Sewers 2,811,085 2,444,526 (366,559) Snow and Ice Removal 72,100 75,049 2,949 Street Engineering 92,500 68,429 (24,071) Capital Outlay - Other 20,000 20,572 572 Total Public Works 2,995,685 2,608,576 (387,109) Sanitation Garbage and Other Refuse 13,600 20,403 6,803 Culture and Recreation Parks and Recreation Current 471,872 327,829 (144,043) Capital Outlay - 30,098 30,098 Total Culture and Recreation 471,872 357,927 (113,945) Debt Service Principal Payments on Other Debt - 11,830 11,830 TOTAL EXPENDITURES 10,772,713 10,768,124 (4,589) 113 CITY OF CORCORAN, MINNESOTA BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (Continued) FOR THE YEAR ENDED DECEMBER 31, 2025 64 Budget Actual Variance with Amounts - Amounts Budget Original and Budgetary Over Final Basis (Under) EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (301,697) 345,974 647,671 OTHER FINANCING SOURCES (USES) Sale of Assets - 72,464 72,464 Lease Proceeds - 56,077 56,077 Transfers From Other Funds 500,000 499,818 (182) To Other Funds (198,303) (490,972) (292,669) TOTAL OTHER FINANCING SOURCES (USES)301,697 137,387 (164,310) NET CHANGE IN FUND BALANCE -$ 483,361 483,361$ FUND BALANCE - BEGINNING 4,583,379 (As Previously Reported) ADJUSTMENTS AND RESTATEMENTS Restatement - Correction of an Error 88,047 FUND BALANCE - BEGINNING 4,671,426 (As Restated) FUND BALANCE - ENDING 5,154,787$ 114 CITY OF CORCORAN, MINNESOTA SCHEDULE OF CITY’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN YEARS 65 City's Proportionate Share of the Net City's Pension Liability Proportionate Plan City's State's and the State's Share of the Net Fiduciary Net Proportionate Proportionate Proportionate Pension Liability Position as a For the City's Share of the Share of the Net Share of the Net (Asset) as a Percentage Measurement Proportion of the Net Pension Pension Liability Pension Liability City's Percentage of of the Total Year Ended Net Pension Liability Associated with Associated with Covered its Covered Pension June 30,Liability (Asset)(Asset) (a)the City (b)the City (a+b)Payroll (c)Payroll ((a+b)/c)Liability General Employees Retirement Pension Plan 2025 0.0273%903,091$ 21,785$ 924,876$ 2,468,133$ 37.5%90.8% 2024 0.0232%856,042$ 22,135$ 878,177$ 1,956,653$ 44.9%89.1% 2023 0.0227%1,269,359$ 35,103$ 1,304,462$ 1,732,391$ 75.3%83.1% 2022 0.0192%1,520,646$ 44,439$ 1,565,085$ 1,405,282$ 111.4%76.7% 2021 0.0159%679,001$ 20,754$ 699,755$ 1,136,701$ 61.6%87.0% 2020 0.0147%881,332$ 27,082$ 908,414$ 1,032,335$ 88.0%79.0% 2019 0.0133%735,327$ 22,832$ 758,159$ 941,564$ 80.5%80.2% 2018 0.0130%721,187$ 23,786$ 744,973$ 876,976$ 84.9%79.5% 2017 0.0111%708,617$ 8,921$ 717,538$ 715,840$ 100.2%75.9% 2016 0.0106%860,667$ 11,305$ 871,972$ 658,533$ 132.4%68.9% Public Employees Police and Fire Pension Plan 2025 0.0988%1,158,067$ 40,144$ 1,198,211$ 1,500,062$ 79.9%91.8% 2024 0.0940%1,236,485$ 47,134$ 1,283,619$ 1,301,458$ 98.6%90.2% 2023 0.0934%1,612,897$ 64,994$ 1,677,891$ 1,184,003$ 141.7%86.5% 2022 0.0735%3,198,430$ 139,705$ 3,338,135$ 900,268$ 370.8%70.5% 2021 0.0588%453,874$ 20,390$ 474,264$ 701,855$ 67.6%93.7% 2020 0.0691%910,812$ 21,449$ 932,261$ 780,391$ 119.5%87.2% 2019 0.0692%736,704$ -$ 736,704$ 729,156$ 101.0%89.3% 2018 0.0655%698,163$ -$ 698,163$ 689,830$ 101.2%88.8% 2017 0.0620%837,074$ -$ 837,074$ 703,095$ 119.1%85.4% 2016 0.0510%2,046,719$ -$ 2,046,719$ 576,654$ 354.9%63.9% 115 CITY OF CORCORAN, MINNESOTA SCHEDULE OF CITY PENSION CONTRIBUTIONS LAST TEN YEARS 66 Contributions in Relation to the Contributions as For the Fiscal Statutorily Statutorily Contribution City's a Percentage of Year Ended Required Required Deficiency Covered Covered December 31,Contribution Contribution (Excess)Payroll Payroll General Employees Retirement Pension Plan 2025 220,815$ 220,815$ -$ 2,944,200$ 7.5% 2024 155,723$ 155,723$ -$ 2,076,307$ 7.5% 2023 143,345$ 143,345$ -$ 1,911,267$ 7.5% 2022 110,142$ 110,142$ -$ 1,468,559$ 7.5% 2021 97,494$ 97,494$ -$ 1,299,921$ 7.5% 2020 79,572$ 79,572$ -$ 1,060,960$ 7.5% 2019 74,497$ 74,497$ -$ 993,289$ 7.5% 2018 68,497$ 68,497$ -$ 913,292$ 7.5% 2017 59,070$ 59,070$ -$ 787,600$ 7.5% 2016 52,496$ 52,496$ -$ 699,947$ 7.5% Public Employees Police and Fire Pension Plan 2025 282,394$ 282,394$ -$ 1,595,446$ 17.7% 2024 247,490$ 247,490$ -$ 1,398,249$ 17.7% 2023 227,691$ 227,691 -$ 1,286,390$ 17.7% 2022 175,464$ 175,464$ -$ 991,320$ 17.7% 2021 137,660$ 137,660$ -$ 777,738$ 17.7% 2020 133,277$ 133,277$ -$ 752,977$ 17.7% 2019 131,228$ 131,228$ -$ 774,204$ 17.0% 2018 113,901$ 113,901$ -$ 703,095$ 16.2% 2017 106,295$ 106,295$ -$ 656,142$ 16.2% 2016 93,418$ 93,418$ -$ 576,654$ 16.2% 116 CITY OF CORCORAN, MINNESOTA SCHEDULE OF CHANGES IN THE CITY’S TOTAL OPEB LIABILITY LAST TEN YEARS (Presented Prospectively) 67 2025 2024 2023 2022 2021 2020 2019 2018 Changes in Total OPEB Liability (TOL) Balance at January 1st 1,090,816$ 1,120,608$ 350,374$ 391,609$ 404,938$ 360,758$ 295,076$ 299,402$ Service Cost 5,871 6,065 19,424 25,166 25,258 21,963 16,254 16,488 Interest Cost 43,536 41,364 14,069 8,344 8,966 10,359 12,423 10,632 Differences between Expected and Actual Experience 299,393 24,149 677,909 - (20,208) - (29,562) - Changes in Actuarial Assumptions 11,028 (42,362) 103,658 (51,370) (12,838) 21,220 81,749 (17,796) Benefit Payments (59,281) (59,008) (44,826) (23,375) (14,507) (9,362) (15,182) (13,650) Balance at December 31st 1,391,363$ 1,090,816$ 1,120,608$ 350,374$ 391,609$ 404,938$ 360,758$ 295,076$ Covered Payroll for Active Members 4,000,000$ 3,700,000$ 3,200,000$ 2,600,000$ 2,300,000$ 1,700,000$ 1,700,000$ 1,300,000$ Net OPEB Liability / Covered Payroll 34.78%29.48%35.02%13.48%17.03%23.82%21.22%22.70% Measurement Year Ended December 31, Note: The schedule is provided prospectively beginning with the City’s fiscal year ended December 31, 201 8 and is intended to show a ten year trend. Additions will be reported as they become available. 117 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 68 NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND 2025 Changes Changes in Actuarial Assumptions • The combined service annuity loading factors increased from 15 percent to 19 percent for vested terminated members and from 3 percent to 44 percent for non-vested, terminated members. • The assumed post-retirement benefit increase changed from 1.25 percent to 1.50 percent. Changes in Plan Provisions • The post-retirement benefit increase formula changed to 100 percent of the Social Security annual increase, between 1.00 percent and 1.75 percent, beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85 percent for the last two consecutive annual valuations or is less than 80 percent in the most recent actuarial valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was 50 percent of the Social Security annual increase, between 1.00 percent and 1.50 percent. • The 1.00 percent additional employer contribution is eliminated when the plan reaches 98 percent funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100 percent funded status. 2024 Changes 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. 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 Changes in Actuarial Assumptions • The investment return assumption and single discount rate were changed from 6.50 percent to 7.00 percent. 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. 118 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 69 NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND (Continued) 2022 Changes Changes in Actuarial Assumptions • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 2021 Changes 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. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 2020 Changes 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-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP- 2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments. • The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. • The assumed spouse age difference was changed from two years older for females to one year older. • The assumed number of married male new retirees electing the 100 .00 percent Joint & Survivor option changed from 35.00 percent to 45.00 percent. The assumed number of married female new retirees electing the 100 percent Joint & Survivor option changed from 15 .00 percent to 30.00 percent. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. 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 0.00 percent after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 119 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 70 NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND (Continued) 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. 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 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. 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 0.00 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members will still apply. • Contribution stabilizer provisions were repealed. • Annual 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. • 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 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 non-vested deferred members. The revised CSA loads are now 0.00 percent for active member liability, 15.00 percent for vested deferred member liability, and 3.00 percent for non -vested deferred member liability. • The assumed annual 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. Changes in Plan Provisions • The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000 thereafter. • The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031. 120 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 71 NOTE 1 PUBLIC EMPLOYEES RETIREMENT PLAN – GENERAL EMPLOYEES FUND (Continued) 2016 Changes Changes in Actuarial Assumptions • The assumed annual 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 dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND 2025 Changes Changes in Actuarial Assumptions • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced (full) retirements and an overall increase in reduced (early) retirements. • Assumed rates of withdrawal were modified; the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70 percent to 65 percent. • 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 percent to 13 percent for vested, terminated members and from 2 percent to 38 percent for non-vested, terminated members. Changes in Plan Provisions • The period of time needed for benefit recipients to receive their first benefit increase was reduced by one year (from 36 months to 24 months for a full increase). • The January 1, 2026 benefit increase changed from 1 percent to 3 percent; subsequent January 1 increases will be 1 percent. • The threshold to end the $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 90 percent funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years to 100 percent funded for both PERA Police & Fire and MSRS State Patrol for three consecutive years (on an actuarial value of assets basis). • The threshold to end the additional $9 million annual state aid contribution changed from the earlier of July 1, 2048 or 100 percent funded for a minimum of three consecutive years to 110 percent 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. 121 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 72 NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued) 2024 Changes Changes in Actuarial Assumptions • There were been no changes made to actuarial assumptions since the previous valuation. Changes in Plan Provisions • The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police & 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 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. 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 Changes in Actuarial Assumptions • The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. • The single discount rate changed from 6.50 percent to 5.40 percent. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 122 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 73 NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued) 2021 Changes 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. • The base mortality table for healthy annuitants and employees was changed from the RP -2014 table to the Pub-2010 Public Safety Mortality table. The mortality improvement scale was changed from MP -2019 to MN-2020. • The base mortality table for disabled annuitants was changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP -2020). • Assumed rates of salary increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates. • Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more unreduced retirements and fewer assumed early retirements. • Assumed rates of withdrawal were changed from select and ultimate rates to service -based rates. The changes result in more assumed terminations. • Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. • Assumed percent married for active female members was changed from 60 percent to 70 percent. Minor changes to form of payment assumptions were applied. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 2020 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 2019 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2017 to MP-2018. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 123 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 74 NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued) 2018 Changes Changes in Actuarial Assumptions • The mortality projection scale was changed from MP-2016 to MP-2017. Changes in Plan Provisions • Annual 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 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. • Interest credited on member contributions decreased from 4.00 percent to 3.00 percent, beginning July 1, 2018. • Deferred augmentation was changed to 0.00 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 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 combined service annuity (CSA) load was 30.00 percent for vested and non-vested, deferred members. The CSA has been changed to 33.00 percent for vested members and 2.00 percent for non -vested members. • The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. • Assumed termination rates were decreased to 3.00 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 annual 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. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. 124 CITY OF CORCORAN, MINNESOTA NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2025 75 NOTE 2 PUBLIC EMPLOYEES RETIREMENT PLAN – POLICE AND FIRE FUND (Continued) 2016 Changes Changes in Actuarial Assumptions • The assumed annual increase rate was changed from 1.00 percent per year through 2037 and 2.50 percent 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. Changes in Plan Provisions • There have been no changes in plan provisions since the previous valuation. NOTE 3 OTHER POSTEMPLOYMENT BENEFIT PLAN 2025 Changes Changes in Actuarial Assumptions • The discount rate was changed from 4.08 percent to 4.83 percent based on updated 20-year municipal bond rates. • Medical trend was updated based on a recently published trend model and trend surveys to better reflect future anticipated experience. • Mortality, Termination and Salary Scale were updated based on the assumptions from the most recent PERA actuarial valuations. Changes in Plan Provisions • Medical premiums were updated to current levels. 2024 Changes Changes in Actuarial Assumptions • The discount rate was changed from 3.77 percent to 4.08 percent based on updated 20-year municipal bond rates. Changes in Plan Provisions • There have been no changes since the prior valuation. 125 76 SUPPLEMENTARY INFORMATION 126 CITY OF CORCORAN, MINNESOTA COMBINING BALANCE SHEET ALL NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2025 77 Total Nonmajor Special Revenue Funds Total Nonmajor Capital Projects Funds Total Nonmajor Governmental Funds ASSETS Cash, Cash Equivalents, and Investments 447,521$ 2,643,314$ 3,090,835$ Assessments Receivable - 236,263 236,263 TOTAL ASSETS 447,521$ 2,879,577$ 3,327,098$ LIABILITIES Accounts Payable 2,510$ 112,126$ 114,636$ Construction Contracts Payable - 46,226 46,226 Deposits Payable - 6,417 6,417 Due to Other Governments 625 - 625 Due to Other Funds - 229,214 229,214 Total Liabilities 3,135 393,983 397,118 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue: Special Assessments - 236,263 236,263 FUND BALANCES Restricted 263,630 394,478 658,108 Committed 180,756 - 180,756 Assigned - 2,150,041 2,150,041 Unassigned - (295,188) (295,188) Total Fund Balances 444,386 2,249,331 2,693,717 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 447,521$ 2,879,577$ 3,327,098$ 127 CITY OF CORCORAN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES ALL NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 78 Total Nonmajor Special Revenue Funds Total Nonmajor Capital Projects Funds Total Nonmajor Governmental Funds REVENUES Special Assessments -$ 40,416$ 40,416$ Intergovernmental - 130,270 130,270 Charges for Services 40,928 - 40,928 Fines 114 - 114 Investment Income (Loss)7,859 52,744 60,603 Miscellaneous 65,451 72,140 137,591 TOTAL REVENUES 114,352 295,570 409,922 EXPENDITURES Current: General Government 86,500 9,596 96,096 Public Safety 24,248 21,750 45,998 Public Works - (1) (1) Capital Outlay - 640,619 640,619 TOTAL EXPENDITURES 110,748 671,964 782,712 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 3,604 (376,394) (372,790) OTHER FINANCING SOURCES (USES) Sale of Assets - 68,790 68,790 Transfers In - 490,972 490,972 Transfers Out - (957,740) (957,740) TOTAL OTHER FINANCING SOURCES (USES)- (397,978) (397,978) NET CHANGE IN FUND BALANCES 3,604 (774,372) (770,768) FUND BALANCES - BEGINNING 440,782 3,023,703 3,464,485 FUND BALANCES - ENDING 444,386$ 2,249,331$ 2,693,717$ 128 CITY OF CORCORAN, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS – SPECIAL REVENUE FUNDS DECEMBER 31, 2025 79 Reserve Donation Fund Police Donation Fund Firearms Safety Fund DWI Forfeiture Fund Drug Forfeiture Fund ASSETS Cash, Cash Equivalents, and Investments 30,583$ 4,483$ 9,816$ 9,456$ 2,989$ LIABILITIES Accounts Payable 362$ 2,148$ -$ -$ -$ Due to Other Governments 625 - - - - Total Liabilities 987 2,148 - - - FUND BALANCES Restricted - - - 9,456 2,989 Committed 29,596 2,335 9,816 - - Total Fund Balances 29,596 2,335 9,816 9,456 2,989 TOTAL LIABILITIES AND FUND BALANCES 30,583$ 4,483$ 9,816$ 9,456$ 2,989$ 129 CITY OF CORCORAN, MINNESOTA COMBINING BALANCE SHEET (Continued) NONMAJOR GOVERNMENTAL FUNDS – SPECIAL REVENUE FUNDS DECEMBER 31, 2025 80 Truck Safety Fund Lawful Gambling Fund Emergency Sirens Fund Total Nonmajor Special Revenue Funds ASSETS Cash, Cash Equivalents, and Investments 4,434$ 251,185$ 134,575$ 447,521$ LIABILITIES Accounts Payable -$ -$ -$ 2,510$ Due to Other Governments - - - 625 Total Liabilities - - - 3,135 FUND BALANCES Restricted - 251,185 - 263,630 Committed 4,434 - 134,575 180,756 Total Fund Balances 4,434 251,185 134,575 444,386 TOTAL LIABILITIES AND FUND BALANCES 4,434$ 251,185$ 134,575$ 447,521$ 130 CITY OF CORCORAN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS – SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 81 Reserve Donation Fund Police Donation Fund Firearms Safety Fund DWI Forfeiture Fund Drug Forfeiture Fund REVENUES Charges for Services 8,745$ -$ 383$ -$ -$ Fines - - - 114 - Investment Income (Loss)586 35 190 174 55 Miscellaneous - 8,500 5,750 - - TOTAL REVENUES 9,331 8,535 6,323 288 55 EXPENDITURES Current: General Government - - - - - Public Safety 10,014 2,148 7,956 - - TOTAL EXPENDITURES 10,014 2,148 7,956 - - NET CHANGE IN FUND BALANCES (683) 6,387 (1,633) 288 55 FUND BALANCES - BEGINNING 30,279 (4,052) 11,449 9,168 2,934 FUND BALANCES - ENDING 29,596$ 2,335$ 9,816$ 9,456$ 2,989$ 131 CITY OF CORCORAN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued) NONMAJOR GOVERNMENTAL FUNDS – SPECIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 82 Truck Safety Fund Lawful Gambling Fund Emergency Sirens Fund Total Nonmajor Special Revenue Funds REVENUES Charges for Services -$ -$ 31,800$ 40,928$ Fines - - - 114 Investment Income (Loss)78 4,437 2,304 7,859 Miscellaneous 6,745 44,456 - 65,451 TOTAL REVENUES 6,823 48,893 34,104 114,352 EXPENDITURES Current: General Government - 86,500 - 86,500 Public Safety 4,130 - - 24,248 TOTAL EXPENDITURES 4,130 86,500 - 110,748 NET CHANGE IN FUND BALANCES 2,693 (37,607) 34,104 3,604 FUND BALANCES - BEGINNING 1,741 288,792 100,471 440,782 FUND BALANCES - ENDING 4,434$ 251,185$ 134,575$ 444,386$ 132 CITY OF CORCORAN, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS – CAPITAL PROJECT FUNDS DECEMBER 31, 2025 83 Long Range Capital Planning Fund Pavement Management Fund Public Works Facility Fund Capital Equip- Cert Fund ASSETS Cash, Cash Equivalents, and Investments 2,191,607$ -$ 57,195$ 46,315$ Assessments Receivable - 236,263 - - TOTAL ASSETS 2,191,607$ 236,263$ 57,195$ 46,315$ LIABILITIES Accounts Payable 98,761$ 13,331$ -$ -$ Construction Contracts Payable - 46,226 - - Deposits Payable - 6,417 - - Due to Other Funds - 229,214 - - Total Liabilities 98,761 295,188 - - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue: Special Assessments - 236,263 - - FUND BALANCES Restricted - - - 46,315 Assigned 2,092,846 - 57,195 - Unassigned - (295,188) - - Total Fund Balances 2,092,846 (295,188) 57,195 46,315 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 2,191,607$ 236,263$ 57,195$ 46,315$ 133 CITY OF CORCORAN, MINNESOTA COMBINING BALANCE SHEET (Continued) NONMAJOR GOVERNMENTAL FUNDS – CAPITAL PROJECT FUNDS DECEMBER 31, 2025 84 Hackamore Upgrade Fund Wetland Restoration Fund Pulte Encore Fund Total Nonmajor Capital Project Funds ASSETS Cash, Cash Equivalents, and Investments 72,587$ 112,944$ 162,666$ 2,643,314$ Assessments Receivable - - - 236,263 TOTAL ASSETS 72,587$ 112,944$ 162,666$ 2,879,577$ LIABILITIES Accounts Payable 34$ -$ -$ 112,126$ Construction Contracts Payable - - - 46,226 Deposits Payable - - - 6,417 Due to Other Funds - - - 229,214 Total Liabilities 34 - - 393,983 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue: Special Assessments - - - 236,263 FUND BALANCES Restricted 72,553 112,944 162,666 394,478 Assigned - - - 2,150,041 Unassigned - - - (295,188) Total Fund Balances 72,553 112,944 162,666 2,249,331 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 72,587$ 112,944$ 162,666$ 2,879,577$ 134 CITY OF CORCORAN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS – CAPITAL PROJECT FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 85 Long Range Capital Planning Fund Pavement Management Fund Public Works Facility Fund Capital Equip- Cert Fund REVENUES Special Assessments -$ 40,416$ -$ -$ Intergovernmental - 130,270 - - Investment Income (Loss)36,930 120 1,057 162 Miscellaneous - - - 72,140 TOTAL REVENUES 36,930 170,806 1,057 72,302 EXPENDITURES Current: General Government 9,596 - - - Public Safety - - - 21,750 Public Works - - (1) - Capital Outlay 98,461 414,902 - 126,133 TOTAL EXPENDITURES 108,057 414,902 (1) 147,883 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (71,127) (244,096) 1,058 (75,581) OTHER FINANCING SOURCES (USES) Sale of Assets - - - 68,790 Transfers In 198,303 - - 292,669 Transfers Out - - - - TOTAL OTHER FINANCING SOURCES (USES)198,303 - - 361,459 NET CHANGE IN FUND BALANCES 127,176 (244,096) 1,058 285,878 FUND BALANCES - BEGINNING 1,965,670 (51,092) 56,137 (239,563) FUND BALANCES - ENDING 2,092,846$ (295,188)$ 57,195$ 46,315$ 135 CITY OF CORCORAN, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (Continued) NONMAJOR GOVERNMENTAL FUNDS – CAPITAL PROJECT FUNDS FOR THE YEAR ENDED DECEMBER 31, 2025 86 Hackamore Upgrade Fund Wetland Restoration Fund Pulte Encore Fund Total Nonmajor Capital Project Funds REVENUES Special Assessments -$ -$ -$ 40,416$ Intergovernmental - - - 130,270 Investment Income (Loss)9,382 2,088 3,005 52,744 Miscellaneous - - - 72,140 TOTAL REVENUES 9,382 2,088 3,005 295,570 EXPENDITURES Current: General Government - - - 9,596 Public Safety - - - 21,750 Public Works - - - (1) Capital Outlay 1,123 - - 640,619 TOTAL EXPENDITURES 1,123 - - 671,964 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 8,259 2,088 3,005 (376,394) OTHER FINANCING SOURCES (USES) Sale of Assets - - - 68,790 Transfers In - - - 490,972 Transfers Out (957,740) - - (957,740) TOTAL OTHER FINANCING SOURCES (USES)(957,740) - - (397,978) NET CHANGE IN FUND BALANCES (949,481) 2,088 3,005 (774,372) FUND BALANCES - BEGINNING 1,022,034 110,856 159,661 3,023,703 FUND BALANCES - ENDING 72,553$ 112,944$ 162,666$ 2,249,331$ 136 CITY OF CORCORAN, MINNESOTA SUPPLEMENTAL COMBINING BALANCE SHEET DEBT SERVICE FUND DECEMBER 31, 2025 87 G.O. Equipment Certificates 2020B G.O. Bonds 2016A G.O. Bonds 2018A G.O. Bonds 2023A G.O. Bonds 2025A G.O. Bonds Total Debt Service Fund ASSETS Cash, Cash Equivalents, and Investments 143,677$ 195,061$ 325,002$ 389,638$ 308,330$ 413,292$ 1,775,000$ Assessments Receivable - - 69,236 - - - 69,236 TOTAL ASSETS 143,677$ 195,061$ 394,238$ 389,638$ 308,330$ 413,292$ 1,844,236$ DEFERRED INFLOWS OF RESOURCES Unavailable Revenue: Special Assessments - - 69,236 - - - 69,236 FUND BALANCES Restricted 143,677 195,061 325,002 389,638 308,330 413,292 1,775,000 TOTAL LIABILITIES, DEFERRED TOTAL DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 143,677$ 195,061$ 394,238$ 389,638$ 308,330$ 413,292$ 1,844,236$ 137 CITY OF CORCORAN, MINNESOTA SUPPLEMENTAL COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DEBT SERVICE FUND FOR THE YEAR ENDED DECEMBER 31, 2025 88 G.O. Equipment Certificates 2020B G.O. Bonds 2016A G.O. Bonds 2018A G.O. Bonds 2023A G.O. Bonds 2025A G.O. Bonds Total Debt Service Fund REVENUES Property Taxes 472,907$ 232,985$ -$ 109,909$ 369,128$ -$ 1,184,929$ Special Assessments - - 75,457 - - - 75,457 Investment Income (Loss)488 2,670 - 7,390 3,177 894 14,619 TOTAL REVENUES 473,395 235,655 75,457 117,299 372,305 894 1,275,005 EXPENDITURES Debt Service: Principal 370,000 175,000 240,000 75,000 185,000 - 1,045,000 Interest and Other Charges 76,980 43,640 19,380 26,193 166,670 750 333,613 TOTAL EXPENDITURES 446,980 218,640 259,380 101,193 351,670 750 1,378,613 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 26,415 17,015 (183,923) 16,106 20,635 144 (103,608) OTHER FINANCING SOURCES (USES) Bond Issuance - - - - - 136,491 136,491 Premium on Bond Issuance - - - - - 276,657 276,657 Transfers In - - 1,172,463 - - - 1,172,463 TOTAL OTHER FINANCING SOURCES (USES)- - 1,172,463 - - 413,148 1,585,611 NET CHANGE IN FUND BALANCES 26,415 17,015 988,540 16,106 20,635 413,292 1,482,003 FUND BALANCES - BEGINNING 117,262 178,046 (663,538) 373,532 287,695 - 292,997 FUND BALANCES - ENDING 143,677$ 195,061$ 325,002$ 389,638$ 308,330$ 413,292$ 1,775,000$ 138 CITY OF CORCORAN, MINNESOTA SCHEDULE OF INDEBTEDNESS FOR THE YEAR ENDED DECEMBER 31, 2025 (UNAUDITED) 89 Initial Outstanding Outstanding Principal Issue Interest Maturity Authorized Balance Balance Due Within Dates Rates Dates Issue 01/01/25 Issued Paid 12/31/25 One Year GOVERNMENTAL INDEBTEDNESS G.O. Equipment Certificate, 2016A 5/1/2016 2.00 - 2.40%2/1/2026 290,000$ 70,000$ -$ 35,000$ 35,000$ 35,000$ G.O. Improvement Bonds, 2016A 5/1/2016 2.00 - 2.40%2/1/2032 2,625,000 1,030,000 - 240,000 790,000 245,000 G.O. Equipment Certificate, 2018A 5/31/2018 3.00 - 3.125%2/1/2028 600,000 285,000 - 70,000 215,000 70,000 G.O. Bonds, 2018A 5/31/2018 3.00 - 3.125%2/1/2034 1,235,000 880,000 - 75,000 805,000 80,000 G.O. Equipment Certificate, 2020A 7/8/2020 2.00%2/1/2030 805,000 555,000 - 90,000 465,000 90,000 G.O. Capital Improvement Bonds, 2020B 11/5/2020 1.00 - 2.00%2/1/2038 3,365,000 2,895,000 - 175,000 2,720,000 180,000 G.O. Equipment Certificate, 2022A 6/2/2022 3.125 - 4.00%2/1/2032 1,800,000 1,630,000 - 175,000 1,455,000 185,000 G.O. Improvement Bonds, 2023A 5/11/2023 4.00 - 5.00%2/1/2039 3,760,000 3,760,000 - 185,000 3,575,000 190,000 G.O. Improvement Bonds, 2025A 4/29/2025 4.00 - 5.00%2/1/2041 3,695,000 - 3,695,000 - 3,695,000 - 18,175,000 11,105,000 3,695,000 1,045,000 13,755,000 1,075,000 Police Tasers 2/1/2025 2.93%2/15/2029 56,077 - 56,077 11,830 44,247 10,582 TOTAL GOVERNMENTAL DEBTS 18,231,077 11,105,000 3,751,077 1,056,830 13,799,247 1,085,582 BUSINESS-TYPE INDEBTEDNESS G.O. Utility Revenue Bonds, 2014B 8/1/2014 2.00 - 3.625%2/1/2035 3,130,000 1,915,000 - 160,000 1,755,000 165,000 G.O. Utility Revenue Bonds, 2020A 7/8/2020 2.00%2/1/2031 1,145,000 825,000 - 110,000 715,000 115,000 G.O. Utility Revenue Bonds, 2023A 5/11/2023 4.00 - 5.00%2/1/2053 21,785,000 21,190,000 - 370,000 20,820,000 390,000 26,060,000 23,930,000 - 640,000 23,290,000 670,000 Maple Grove WAC 1/1/2013 5.50%12/20/2027 300,000 107,933 - 33,944 73,989 35,838 Maple Grove WAC 2/16/2016 0.00%1/1/2027 117,790 35,337 - 11,779 23,558 11,779 417,790 143,270 - 45,723 97,547 47,617 TOTAL BUSINESS-TYPE DEBTS 26,477,790 24,073,270 - 685,723 23,387,547 717,617 TOTAL INDEBTEDNESS 44,652,790$ 35,178,270$ 3,695,000$ 1,730,723$ 37,142,547$ 1,792,617$ General Obligation Revenue Bonds Notes Payable General Obligation Bonds Leases 139 CITY OF CORCORAN, MINNESOTA SUMMARY FINANCIAL REPORT REVENUES AND EXPENDITURES FOR GENERAL OPERATIONS GOVERNMENTAL FUNDS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 90 Total 2025 Total 2024 Percent Increase (Decrease) REVENUES Taxes 9,164,342$ 8,352,937$ 9.71% Franchise Taxes 69,848 66,024 5.79% Special Assessments 119,628 126,837 -5.68% Licenses, Permits, and Fees 1,979,080 1,876,783 5.45% Intergovernmental 3,477,464 484,183 618.21% Charges for Services 1,394,127 1,276,659 9.20% Fines 31,604 26,980 17.14% Investment Income 417,445 339,316 23.03% Miscellaneous 523,331 89,591 484.13% TOTAL REVENUES 17,176,869$ 12,639,310$ 35.90% Per Capita 1,853.15 1,508.63 22.84% EXPENDITURES Current: General Government 2,728,725$ 3,069,410$ -11.10% Public Safety 5,126,679 4,406,892 16.33% Public Works 2,588,003 2,462,531 5.10% Sanitation 20,403 18,789 8.59% Parks and Recreation 327,829 270,252 21.30% Capital Outlay 6,742,077 5,011,195 34.54% Debt Service: Principal 1,056,830 835,000 26.57% Interest and Other Charges 444,321 396,084 12.18% TOTAL EXPENDITURES 19,034,867$ 16,470,153$ 15.57% Per Capita 2,053.61 1,965.88 4.46% Total Long-term Indebtedness 13,755,000$ 11,105,000$ 23.86% Per Capita 1,483.98 1,325.50 11.96% General Fund and Special Revenue Funds Committed, Assigned, and Unassigned Fund Balances - December 31 5,132,046$ 4,495,471$ 14.16% Per Capita 553.68 536.58 3.19% The purpose of this report is to provide a summary of the financial information concerning the City of Corcoran to interested citizens. The complete financial statements may be examined at 8200 County Road 116, Corcoran, MN 55340. Questions about this report should be directed to Matt Gsellmeier, Finance Director, at 763-400-7031. 140 91 OTHER REQUIRED REPORTS AND SCHEDULES 141 92 www.swco.cpa 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 Honorable Mayor and City Council City of Corcoran, 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 Corcoran, 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 of Corcoran’s basic financial statements and have issued our report thereon dated June 29, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of Corcoran’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances fo r 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 i nternal 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 no t designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Give n these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weakne sses. However, material weaknesses or significant deficiencies may exist that were not identified. 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, noncomplianc e 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 t ests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 142 93 Minnesota Legal Compliance In connection with our audit, nothing came to our attention that caused us to believe that the City of Corcoran 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, 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 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 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 or on comp liance. 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 communication is not suitable for any other purpose. SCHLENNER WENNER & CO. St. Cloud, Minnesota June 29, 2026 143 STAFF REPORT Agenda Item: 6.d Council Meeting: July 9, 2026 Prepared By: Matt Gottschalk, Director of Public Safety Topic: Police Department Vehicle Use Policy Action Required: Approval Summary In the most recent collective bargaining agreement between the City of Corcoran and Law Enforcement Labor Services, Local 615 a Take Home Vehicle Program was established. Following this agreement staff was directed to update the Vehicle Use policy to accomodate those changes. Staff has created the new Vehicle Use policy and has attached it to this report for the Council review. The new draft policy has been reviewed by the City Attorney. Financial/Budget Staff time and legal review costs for this policy have been incurred. The Take Home Vehicle Program has already been approved by the City in the collective bargaining agreement. This policy approval does not carry new costs. Options 1. Approve the police department Vehicle Use policy as presented. 2. Provide staff with other direction. Recommendation Approve the police department Vehicle Use policy as presented. Council Action Review Attachments 1. Police Department Vehicle Use Policy.pdf 144 Vehicle Use 702.1 PURPOSE AND SCOPE The purpose of this policy is to establish a system of accountability to ensure department vehicles are used appropriately. This policy provides guidelines for on- and off-duty use of department vehicles. 702.2 POLICY The Corcoran Police Department provides vehicles for department-related business and may assign patrol and unmarked vehicles based on a determination of operational efficiency, economic impact to the Department, requirements for tactical deployments, and other considerations. 702.3 USE OF VEHICLES 702.3.1 OTHER USE OF VEHICLES Members utilizing a vehicle for any purpose other than their normally assigned duties or normal vehicle assignment (e.g., transportation to training, community event) should first notify the Shift Sergeant or immediate supervisor. This subsection does not apply to those who are assigned to transport vehicles to and from the maintenance facility or car wash. 702.3.2 INSPECTIONS Members shall be responsible for inspecting the interior and exterior of any assigned vehicle before taking the vehicle into service and at the conclusion of their shifts. Any previously unreported damage, mechanical problems, unauthorized contents, or other problems with the vehicle shall be promptly reported to a supervisor and recorded in fleet maintenance software. The interior of any vehicle that has been used to transport any person other than a member of this department should be inspected prior to placing another person in the vehicle and again after the person is removed. This is to ensure that unauthorized or personal items have not been left in the vehicle. 702.3.3 MOBILE DIGITAL COMPUTER Members assigned to vehicles equipped with a Mobile Digital Computer (MDC) should log onto the MDC with the required information when going on-duty. Use of the MDC is governed by the Mobile Digital Computer Use Policy. 702.3.4 VEHICLE LOCATION SYSTEM Patrol and other vehicles, at the discretion of the Director of Public Safety, may be equipped with a system designed to track the vehicle's location. While the system may provide vehicle location and other information, members are not relieved of their responsibility to use required communication practices to report their location and status. Members should not alter, interfere with, or disable these systems. 145 702.3.5 KEYS Members approved to operate marked patrol vehicles should be issued a copy of the key as part of their initial equipment distribution. Members should not duplicate keys. The loss of a key should be promptly reported. 702.3.6 AUTHORIZED PASSENGERS Excepting passengers permitted by the Ride-Along Policy, Members operating marked patrol squads should not permit persons to ride as passengers in the vehicle unless they are City personnel, persons required to be conveyed in the performance of duty, or persons specifically authorized by the Department. 702.3.7 Lawful Operation Members must comply with all laws and regulations related to vehicle operations and parking. 702.3.8 NON-SWORN MEMBER USE Non-sworn members using marked emergency vehicles should ensure that all weapons have been removed before going into service. Non-sworn members may only access vehicle features/equipment/systems in compliance with all Department policies and directives of the Director of Public Safety or their designee. 702.4 INDIVIDUAL MEMBER ASSIGNMENT TO VEHICLES Department vehicles may be assigned to individual members at the discretion of the Director of Public Safety. Vehicles may be assigned for on-duty and/or take-home use. Assigned take home vehicles are intended to promote recruitment/retention, crime prevention, and fleet management while improving response times for personnel. All assignments are temporary and subject to change at the discretion of the Director of Public Safety or their designee. 702.4.1 ELIGIBILITY FOR ASSIGNMENT Eligibility for assignment of a take home patrol squad requires the officer to be in good standing with Department. a) Tier 1 (1-5 Years of Service): Non-probationary Full-Time officers with one to five years of continuous service may, at their option, request to take home their assigned squad car only during consecutive working shifts. Vehicles must be returned to the department at the end of a shift block or when the officer is off duty for more than 24 hours. b) Tier 2 (More than 5 Years of Service): Non-probationary Full-Time officers with more than five years of continuous service may be assigned a dedicated take-home vehicle for use during duty, subject to the use restrictions as outlined. 702.4.2 Officers on probation are not permitted to take vehicles home, unless approved by a supervisor, in advance. Assigned vehicles may be changed at any time. Permission to take home a vehicle may be withdrawn at any time. 146 The assignment of vehicles may be suspended when the member is unable to perform his/her regular assignment. Department members shall sign a take-home vehicle agreement prior to vehicle assignment. Members who are assigned a take-home vehicle agree to abide by this policy and the following criteria for use of take-home vehicles: a) City vehicles shall only be used for work-related purposes. Any personal use of a city vehicle, other than "de minimus" personal use, is prohibited b) The member lives within a reasonable distance (generally not to exceed a 60-minute drive time) of the Corcoran city limits. c) While operating the vehicle, authorized members will carry their police identification, have accessible their duty firearm and portable radio, and be prepared to perform any function they would be expected to perform while on duty. Officers should also ensure that department radio communication capabilities are maintained, to the extent possible. d) Unattended vehicles are to be locked and secured at all times. e) When taken home, city vehicles should be parked in a private garage or driveway. No on- street, visitor, or publicly accessible garage parking is permitted while off duty. Use of garage units shared by multiple households is discouraged. Officers residing in apartment complexes or multi-unit housing must obtain case-by-case approval for the assignment of take-home vehicles. f) When city vehicles are taken home, firearms, weapons, control devices, computers, AEDs, Naloxone, and any confidential or private data shall be removed from the vehicle unless the vehicle is secured inside a locked garage which is only accessible by the member and those residing in the member’s household. g) Damage, loss, and/or theft of city-owned or controlled property should be immediately reported to the shift sergeant. h) Vehicles are to be secured at the member's residence or the appropriate department facility when a member will be away (e.g., on vacation) i) Members who opt to use the take home vehicle program should coordinate with city staff regularly and promptly to facilitate vehicle maintenance during their shift, not on overtime unless it is absolutely necessary and beyond the control of the member. j) There should be no modifications, additions, or removal of any equipment or accessories without written permission from the assigned vehicle program manager or the Director of Public Safety. 702.4.3 UNSCHEDULED TAKE-HOME USE Circumstances may arise where department vehicles may be used by members to commute to and from work assignment. Members may take home department vehicles only with prior approval of a supervisor. 147 702.5 ENFORCEMENT ACTIONS When driving a take-home vehicle to and from work outside of the jurisdiction of the Corcoran Police Department or while off-duty, an officer should not initiate enforcement actions except in those circumstances where a potential threat to life, safety, or serious property damage exists (see the Off-Duty Law Enforcement Actions and Law Enforcement Authority policies). Officers may render public assistance when it is deemed prudent (e.g., to a stranded motorist). 702.6 MAINTENANCE Members are responsible for the cleanliness (exterior and interior) and overall maintenance of their assigned vehicles. Cleaning and maintenance supplies will be provided by the Department. The following should be performed as outlined below: a) Members shall make daily inspections of their assigned vehicles for service/ maintenance requirements and damage. b) It is the member's responsibility to ensure that their assigned vehicle is maintained according to the established service and maintenance schedule. c) All scheduled vehicle maintenance and car washes shall be performed as necessary at a facility approved by the city staff in charge of vehicle maintenance. d) The Department shall be notified of problems with the vehicle and approve of any major repairs before they are performed. e) When leaving the vehicle at the maintenance facility, the member will coordinate maintenance with the assigned city staff. f) All weapons shall be removed from, and all sensitive data secured within, any vehicle left for maintenance. Removed weapons shall be stored in a secure manner. 702.7 DAMAGE, ABUSE AND MISUSE When any department vehicle is involved in a traffic collision or otherwise incurs damage, the involved member shall promptly notify a supervisor. Any collision report shall be filed with the agency having jurisdiction (see the Traffic Collisions Policy). Damage to any department vehicle that was not caused by a traffic collision should be immediately reported during the shift in which the damage was discovered or, if not feasible, as soon thereafter as possible. Damage shall be documented on a narrative report with photos of any damage, and the Shift Sergeant shall be promptly notified. 148 STAFF REPORT Agenda Item: 6.e Council Meeting: July 9, 2026 Prepared By: Jessica Christensen Buck, Parks and Recreation Manager Topic: Wayfinding Policy and Sign Designs Action Required: Approval Summary As Corcoran's park system continues to grow, there is a need for a consistent approach to park signage that improves navigation, City identity, and cohesive appearance throughout parks, trails, and open spaces. To address this need, staff has been working to develop a Wayfinding Policy to establish standards for park signage and worked with HKGi to develop sign designs that would serve as the City's future sign family. Both the Wayfinding Policy and the conceptual sign family have been reviewed and refined with the Parks and Trails Commission, a joint City Council/Parks and Trails Commission work session, and City staff. During the Commission meeting on June 18, 2026, the Parks and Trails Commission recommended approval of both the revised Wayfinding Policy and the wood post with composite panel sign family for City Council consideration. Wayfinding Policy The policy includes four categories of signage: monument, regulatory, directional/wayfinding, and interpretive. The draft policy also included guidance for donor recognition, grant-required signage, and general design standards. Commissioners discussion centered on maintaining flexibility for future park development while creating a recognizable identity through the park system. Additional discussion included implementation priorities, maintenance considerations, balancing consistency with future park needs, and incorporating partner recognition without unnecessary visual clutter. The appendix portion of the policy is intended to include the final design standards once work is completed with a vendor for the sign family. Sign Family During the joint work session on March 12, 2026 between the City Council and Parks and Trails Commission, discussion occurred regarding the importance of establishing a consistent visual identity. Additionally, during the regular March 12, 2026 City Council meeting, the Council authorized staff work with HKGi to develop conceptual sign designs. HKGi had a project kickoff meeting with staff, development of conceptual sign families, staff review of conceptual design, Parks and Trails Commission review, and is now coming to City Council for review and possible approval. The Parks and Trails Commission completed the review during the June 18, 2026 meeting and expressed a clear preference for the wood post with composite panel sign family as they felt the design achieved the appropriate balance between aesthetics, cost, and durability. Additionally, they felt that the design provides a clean, timeless appearance, while reinforcing the City's branding. Majority of Commissioners supported the traditional profile and the bump-out feature incorporating the City logo, noting it enhanced the overall appearance without significantly increasing the cost. The Commission also recommended incorporating concrete pads beneath future signs to reduce vegetation maintenance, minimize damage from maintenance equipment, and improve long-term stability. Based on these discussions, the Parks and Trails Commission recommended approval of the wood post with composite panel sign family. Financial/Budget Approval of the policy and sign family does not authorize construction or procurement of signage. These 149 are conceptual cost estimates were developed by HKGi, with staff looking for approval to solicit quotes for the signs. Options 1. Approval of the Wayfinding Policy and design of the sign family, with direction for staff to procure quotes for signage at Heritage Park and Wildflower Park. 2. Provide feedback on the Wayfinding Policy and/or sign family designs for staff to bring back to a future meeting. 3. Provide staff with alternative direction. Recommendation Approval of the Wayfinding Policy and design of the sign family, with direction for staff to procure quotes for signage at Heritage Park and Wildflower Park. Council Action Approval of the Wayfinding Policy and design of the sign family, with direction for staff to procure quotes for signage at Heritage Park and Wildflower Park. Attachments 1. City of Corcoran - Wayfinding Policy - June 2026 2. 26.07.09 - Sign Family 150 Updated 6/11/2026 Wayfinding Policy Purpose The Wayfinding Policy establishes a consistent and cohesive signage system throughout the City of Corcoran’s parks, trails, and open spaces. Its intent is to enhance user experience by clearly identifying park entrances, amenities, and rules while ensuring all signs align with City branding, meet accessibility requirements, and comply with applicable codes. The policy provides a unified framework for standards, implementation, and installations, guiding both updates to existing parks and integration into future projects. Background The City of Corcoran’s park system has signage located within Heritage Park (Monument and Regulation) and Wildflower Park (Regulation). Within the Heritage Park remaster, there was a need to update signage to reflect accurate park information. Signage previously located within Heritage Park was installed over the past 30+ years and includes errors following park development. Scope The following sign types are included within the scope of this policy: 1. Monument Signs: Serves as the primary identity element at the entrance of parks. One allowed per parcel. 2. Regulatory Signs: Signs that communicate park rules, ordinances, safety requirements, and operational information. Regulatory signs should be located in high-traffic areas where visibility is necessary for compliance and public awareness. 3. Directional/Wayfinding Signs: Signs that assist users in navigating parks, trails, and open spaces. Directional signs may identify destinations such as playgrounds, pavilions, athletic fields, parking, restrooms, etc. 4. Interpretive Signs: Signs that provide educational, historical, cultural, or site-specific information intended to enhance the visitor experience. The sign family should utilize consistent materials, colors, typography, and logos to create a cohesive system throughout the City while allowing for varying sizing and applications based on park type and location. General Design Standards Monument Signs  Includes park name.  Includes City of Corcoran logo.  Includes park address.  Community Parks: May be double-sided where visibility warrants.  Neighborhood Parks: Designed at a smaller scale than Community Parks. Regulatory Signs  Includes applicable ordinances, rules, safety information, and operational notices. Directional/Wayfinding Signs  Utilize consistent branding and typography.  Include directional arrows, destinations, distances, and/or icons as appropriate.  May utilize illustrative or icon-based wayfinding elements. 151 Updated 6/11/2026  Applicable to parks, trail systems, and regional trail connections. Interpretive Signs  Designed to complement the overall sign family while allowing flexibility for site-specific content. *More specific design information can be found within the appendix. External Funding and Partner Recognition The City strives to be fiscally responsible and may pursue or be awarded external funding for parks and recreation projects. External funding may include, but is not limited to, grants, agency partnerships (Hennepin County, Three Rivers Park District, State of Minnesota, etc.), and private or organizational donations, when appropriate. Certain funding sources, partnerships, agencies, or agreements may require acknowledgement signage, recognition, sponsor identification, or other project-specific signage that does not fully conform to the design standards established within this policy. When required, the City shall make reasonable efforts to integrate such signage into the overall park environment while meeting funding or partnership obligations. In these situations, required signage may differ in appearance, materials, size, or branding from the standard wayfinding sign family described within this policy. Required signage should be limited in number, appropriately scaled, and located in proximity to the funded improvement, project area, or recognized contribution whenever appropriate. When multiple funding sources or partnerships contribute to a project, t he City may request consolidation of recognition signage, as permitted by funding agreements to reduce visual clutter and maintain a cohesive park environment. Externally required signage shall be subject to City review to ensure consistency with safety considerations, operational needs, and long-term maintenance goals. Regional Trail Coordination The City of Corcoran recognizes that portions of its trail system may connect to or be associated with regional trail networks. Where trails, trailheads, wayfinding elements, or related amenities are developed in coordination with regional partners, signage may be required to comply with partner agency standards, branding requirements, design guidelines, or wayfinding systems. When feasible, City wayfinding signage may be integrated within signage systems to provide a more seamless user experience and maintain consistency for trail users navigating between jurisdictions. The City shall work collaboratively with partner agencies to minimize sign clutter, avoid conflicting wayfinding information, and maintain a cohesive environment. Maintenance Wayfinding signage should be designed and installed with long-term maintenance considerations in mind. Sign foundations and support systems should prioritize durability, accessibility, and ease of maintenance. 152 Updated 6/11/2026 Where practical, signs should be installed on concrete foundations or pads to reduce vegetation management requirements, minimize damage from maintenance equipment, and improve long-term stability. City staff shall periodically inspect signage to identify damage, vandalism, fading, structural concerns, or outdated information. As the wayfinding system expands, the City should consider incorporating sign replacement and major refurbishment into future Capital Improvement Program (CIP) planning to help maintain a consistent and functional signage system throughout the park network. 153 Updated 6/11/2026 Appendix A – Approved Sign Family  A1: Community Park Sign Standards  A2: Neighborhood Park Sign Standards  A3: Regulatory Design Standards  A4: Directional/Wayfinding Sign Standards  A5: Interpretive Sign Standards  For each of A1-A5: o Final design drawings o Manufacturer cut sheets o Material specifications o Mounting details o Foundation details 154 Updated 6/11/2026 Appendix B – Graphic Standards  Font standards  Approved color palette  Approved icons  Sign material standards 155 Updated 6/11/2026 Appendix C – City Logo Standards  Full color logo (white text)  Full color logo (black text)  Monochromatic/greyscale logo 156 1CITY COUNCIL MEETING PARK WAYFINDING SIGNSCITY OF CORCORAN, MINNESOTACity Council Meeting | July 9, 2026 157 2CITY COUNCIL MEETING PLAN & PROCESSABOUT THE PROJECTWhat is Wayfinding?Wayfinding is the process of navigating and orienting oneself within a physical environment. Items such as signage, maps, and landmarks are often used to enhance this process. A wayfinding signage family strategically distributes these items throughout a space, ensuring uniformity in visual aspects such as color, logos, and materials for enhanced clarity and guidance. Why is Wayfinding Important?Creating effective wayfinding throughout a park system is crucial for several reasons: • User Experience: Clear signage along with intuitive placement reduces frustration and stress associated with getting lost or disoriented. • Safety: It can provide important information about park conditions, rules, and regulations as well as helping navigate users where they need to go in case of emergency. • Accessibility: Universal design principles and barrier-free sign placement can make spaces more inclusive and accommodating. • Branding and Identity: Consistent use of branding elements such as the city logo can strengthen brand recognition. 158 3 PROCESSABOUT THE PROJECTProject Schedule City Council Meeting Final Concepts Complete Kickoff Meeting with Staff Draft Concepts Meeting with Staff Park Commission Meeting Task 1: Project Kick off & Organization Task May 2026 June 2026 July 2026 Task 2: Develop Sign Concepts CITY COUNCIL MEETING 159 4CITY COUNCIL MEETING SIGN TYPES Community Park Sign Primary entrance sign that identifies and promotes the community park Entrance sign that identifies a neighborhood park and reinforces park branding Wayfinding sign that directs pedestrians to destinations, amenities, and trail connections Educational sign that highlights natural, cultural, or historical features of the site Sign that identifies park rules and regulations NeighborhoodPark Sign Directional / Wayfinding Sign Interpretive Sign Rules and Regulations Sign 1 2 3 4 5 160 5CITY COUNCIL MEETING COST EXAMPLES »Amenity sign »Two panels with wood posts »$12,250 [$8,250 (sign) + $4,000 (installation) (2024)] »Gateway sign »Two panels with wood posts »$19,550 [15,550 (sign) + $4,000 (installation) (2024)] »Park identification sign - small »Double sided plastic panel with wood posts »$8,625.00 (sign) (2023 estimate) »Park monument sign with stone veneer and illuminated letters »Sign: $12,155.00 (sign) (2012) 161 6CITY COUNCIL MEETING Overview SIGN FAMILY CONCEPTWOOD POSTS WITH COMPOSITE PANEL Community Park Neighborhood Park Directional / Wayfinding Interpretive Estimated cost: $4,500-$7,000 Estimated cost: $3,000-$5,000 Estimated cost:$2,000-$3,000 Estimated cost: $2,500-$4,500 162 7CITY COUNCIL MEETING COMMUNITY PARK SIGN Illustrative Back of sign (two-sided sign) Wood post to match Heritage Park building 163 8CITY COUNCIL MEETING COMMUNITY PARK SIGN HERITAGE PARK 20200 County Road 50 8" 4' 6' - 6 " 8' SIGN PANEL:COMPOSITE HERITAGE PARK 20200 County Road 50 SIGN PANEL:COMPOSITE 4X4 WOOD POST 2" 1' - 1 0 " 6" 4" 8" 4X4 WOOD POST 4X4 WOOD POST 4X4 WOOD POST LOGO METAL CAP,GREEN METAL BRACKETAND FOOTINGCOVER, GREEN LOGO METAL CAP,GREEN FOOTING METAL BRACKETAND FOOTINGCOVER, GREEN FOOTING Technical Back of sign (two-sided sign)Side view 164 9CITY COUNCIL MEETING NEIGHBORHOOD PARK SIGN 6604 Wild Flower Trail 6' - 4 " SIGN PANEL:COMPOSITE 4X4 WOOD POSTWILDFLOWERPARK 4"8"5' 1'8" LOGO 4X4 WOOD POST METAL CAP,GREEN METAL BRACKETAND FOOTINGCOVER, GREEN FOOTING Wood post to match Heritage Park building Technical Illustrative 165 10CITY COUNCIL MEETING DIRECTIONAL/WAYFINDING SIGN DIAMOND LAKEREGIONAL TRAIL INFO SIGN PANEL:COMPOSITE 4X4 WOOD POST 11 " 1' - 1 0 " 2'-2" 2'-8" 8' - 6 " 8" 1' 3' - 7 " 1' - 7 " 8" 4" 8" 4X4 WOOD POST SIGN PANEL:COMPOSITE METAL CAP,GREEN METAL BRACKETAND FOOTINGCOVER, GREEN FOOTING Directional sign example Wood post to match Heritage Park building Technical Illustrative 166 11CITY COUNCIL MEETING INTERPRETIVE SIGN Interpretive sign example Illustrative Technical 3' 3' SIGN PANEL:COMPOSITE 4X4 WOOD POST 2' 8" 1' 2' - 8 " 4X4 WOOD POST 4X4 WOOD POST METAL BRACKETAND FOOTINGCOVER, GREEN SIGN PANEL:COMPOSITE FOOTING Wood post to match Heritage Park building 167 12CITY COUNCIL MEETING SIGN FAMILY CONCEPTWOOD POSTS WITH COMPOSITE PANEL Community Park Neighborhood Park Directional / Wayfinding Interpretive 168 THANK YOU 169 STAFF REPORT Agenda Item: 6.f Council Meeting: July 9, 2026 Prepared By: Lauren Letsche, Engineering Development Superintendent, Topic: Letter of Support - Hennepin County CSAH 19 and CR 30 Multimodal Safety Improvements Action Required: Authorization Summary Hennepin County is submitting an application to the Federal Highway Administrations Highway Safety Improvement Program (HSIP) a core Federal Aid Program with the purpose to achieve a significant reduction in traffic fatalities and serious injuries on public roads. The county has requested a letter of support for this application. The County specifically asks that we acknowledge that the city is aware of the project and understands that the city will likely be required to cost participate in this project as outlined in the county's Cost Participation and Maintenance policies. Specific details regarding cost participation and maintenance responsibilities of project elements are anticipated to be determined during the design process as project development is advanced. This project would modify the intersection in some format yet to be determined after further review and public engagement. Staff has drafted a letter of support for the project for Council's review and consideration. Financial/Budget Hennepin County's Cost Participation Policy states that cities are responsible for 50% of the cost of the project that is in their city. Local cost participation would be offset by federal or other eligible grant reimbursements. Options 1. Authorize staff to submit a letter of support of grant applications for improvements to the CSAH 19 and CR 30 intersection. 2. Modify letter of support. 3. Decline. Recommendation Authorize staff to submit a letter of support for a grant application for improvements to the CSAH 19 and CR 30 intersection. Council Action Consider a motion to authorize staff to submit a letter of support for a grant application for improvements to the CSAH 19 & CR 30 intersection. Attachments 1. CSAH 19_HSIP_Request_Corcoran.pdf 2. City of Corcoran_LOS_CSAH_19_2026_HSIP.pdf 170 Public Works Hennepin County Public Works 1600 Prairie Drive Medina, MN 55340 hennepin.us June 23, 2026 Kevin Mattson Public Works Director City of Corcoran – Department of Public Works 8200 County Road 116 Corcoran, MN, 55340 Re: Support for 2026 Highway Safety Improvement Program Application CSAH 19 (County Road 19) at CSAH 30 (97th Avenue) Multimodal Safety Improvements Dear Mr. Mattson: As part of MnDOT’s 2026 Highway Safety Improvement Program (HSIP), Hennepin County is submitting an application to seek federal formula funding for a multimodal safety project at the CSAH 19 (County Road 19) and CSAH 30 (97th Avenue) intersection in the City of Corcoran. Federal funding through this solicitation is available for program years 2030 and 2031. The project for this funding application will involve safety improvements to the CSAH 19 (County Road 19) and CSAH 30 (97th Avenue) intersection. A Safe System Design at this intersection will be advanced, and project elements are anticipated to include, but not be limited to, the following: • Redesign of the existing intersection (including consideration of roundabout control) to improve operations • Installation of raised medians to manage the speeds of people driving • Upgrading of existing lighting to improve nighttime visibility • Crossing enhancements for people walking and biking along the Lake Independence Regional Trail that extends parallel to CSAH 19 (County Road 19) These proven safety countermeasures are anticipated to reduce known crash types, especially those resulting in fatal and severe injuries. This project presents an opportunity to incorporate safety improvements along the county’s transportation system – as recommended by the county’s Toward Zero Deaths Action Plan that was adopted in 2025. We would appreciate a letter of support or resolution from the City of Corcoran for this application and project, acknowledging that the city is aware of this project and understands that the city would likely be required to cost participate in this project as outlined in the county’s Cost Participation and Maintenance Policy. Specific details regarding cost participation are anticipated to be developed during the design process as project development is advanced. 171 Public Works Hennepin County Public Works 1600 Prairie Drive Medina, MN 55340 hennepin.us If you agree to support this proposed project, please send a PDF letter via email addressed to: Carla Stueve, P.E. Director and County Highway Engineer Hennepin County Transportation Project Delivery 1600 Prairie Drive Medina, MN 55340 You may email the electronic version of the letter to me at Emily.Buell@hennepin.us. I have attached a letter template that you may use or modify as you see fit. Hennepin County appreciates the opportunity to partner with the City of Corcoran on this important transportation improvement project. Given an application deadline of July 23, 2026, we would appreciate your support letter by July 16, 2026. If you have any questions, please contact me at (612) 543-1963 or at Emily.Buell@hennepin.us. Sincerely, Emily Buell Transportation Project Delivery – Capital Programming Cc: Carla Stueve, P.E. – County Highway Engineer Jason Pieper, P.E. - Transportation Project Delivery – Capital Programming Manager 172 www.corcoranmn.gov 8200 County Road 116 Corcoran, MN 55340 Phone: 763-420-2288 Administrative Offices Public Works Offices 9100 County Road 19 Corcoran, MN 55357 Phone: 763-420-2652 Phone: 763-420-8966 Police Department Offices 8200 County Road 116 Corcoran, MN 55340 7/9/2026 Carla Stueve, P.E. County Highway Engineer Hennepin County Transportation Project Delivery 1600 Prairie Drive Medina, MN 55340 Re: Support for 2026 Highway Safety Improvement Program Application CSAH 19 & County Road 30 Multimodal Safety Improvements Ms. Stueve, The City of Corcoran hereby expresses its support for Hennepin County’s 2026 Highway Safety Improvement Program federal formula funding application for the construction of multimodal safety improvements at the CSAH 19 (County Road 19) and CSAH 30 (97th Avenue) intersection in the City of Corcoran A Safe System Design at this intersection will be advanced, and project elements are anticipated to include, but not be limited to: redesign of the existing intersection (including consideration for roundabout control), installation of raised medians, upgrading of existing lighting, and crossing enhancements for the Lake Independence Regional Trail – thereby reducing known crash types, especially those resulting in fatal and serious injuries. This project presents an opportunity to incorporate safety improvements along the county’s transportation system – as recommended by the county’s Toward Zero Deaths Action Plan that was adopted in 2025. The City of Corcoran acknowledges that Hennepin County is pursuing federal funding to construct multimodal safety improvements at CSAH 19 (County Road 19) and CSAH 30 (97th Avenue) and that the city will likely be required to cost participate in the project as outlined in the Hennepin County Cost Participation and Maintenance Policies. Specific details regarding cost participation and maintenance responsibilities are anticipated to be determined during the design process as project development is advanced. Thank you for making us aware of this application and project, and for the opportunity to provide support. The City of Corcoran looks forward to working with you on this project. Sincerely, Tom McKee Mayor – City of Corcoran CC: Kevin Mattson, P.E. – Public Works Director / City Engineer Jay Tobin – City Administrator 173 STAFF REPORT Agenda Item: 6.g Council Meeting: July 9, 2026 Prepared By: Jessica Christensen Buck, Parks and Recreation Manager Topic: Heritage Park - Update Action Required: Information Only Summary Construction of Heritage Park continues to progress toward completion. As the project has entered its final stages, coordination between multiple construction contracts continues to be complex. Staff has been actively working with contractors and utility providers to resolve outstanding items while maintaining overall project schedule. The primary challenge affecting the project schedule has been utility coordination. Staff has been working through utility-related approvals and coordination since August 2025. While the necessary approvals have been received, the length of the approval process delayed the City's ability to secure spots within external agencies construction schedules. Until permanent electrical service installation is completed, irrigation cannot be activated. As a result, installation of landscaping and seeding around the playground area must also be delayed, as newly installed plant materials require irrigation to survive. Additional project delays have occurred due to backordered exterior wood siding materials and delayed installation of the upper exterior windows on the park building. Completion of these building elements, as well as the utility connections that run to the building, is necessary before concrete flatwork can be completed around portions of the building, including between the playground and building. Current project delays are not anticipated to impact the City's soccer season (starting on Tuesday, July 7). The building will remain secure, appropriate construction fencing in place, and Parks and Recreation staff will be onsite during programming to help monitor activities and ensure participant safety. Staff recommends presenting the results of the Heritage Park Building survey (submissions closed on June 26) at an upcoming meeting, with a proposed draft overview of rental process. Based on the current construction timeline, staff recommends a tentative Heritage Park ribbon cutting for August 23, 2026, prior to the regularly scheduled City Council meeting. While portions of the newly seeded turf may still be establishing, the park is anticipated to be in a safe and functional condition at that time, with any necessary construction fencing and signage remaining in place where appropriate. Council Action 174 STAFF REPORT Agenda Item: 6.h Council Meeting: July 9, 2026 Prepared By: Kevin Mattson, Public Works Director, Topic: Letter of Support - Hennepin County CSAH 10 and CSAH 92 Mumble Strip Improvements Action Required: Authorization Summary Hennepin County is submitting an application to the Federal Highway Administrations Highway Safety Improvement Program (HSIP) a core Federal Aid Program with the purpose to achieve a significant reduction in traffic fatalities and serious injuries on public roads. The county has requested a letter of support for this application. Mumble and rumble strip application has been proven to reduce roadway departure crashes in rural areas. Staff has drafted a letter of support for the project for Council's review and consideration. Financial/Budget Hennepin County's Cost Participation Policy states that cities are responsible for 50% of the cost of the project that is in their city. Local cost participation would be offset by federal or other eligible grant reimbursements. Options 1. Authorize staff to submit a letter of support for mumble strip improvements to CSAH 10 and CSAH 92. 2. Modify letter of support. 3. Decline. Recommendation Authorize staff to submit a letter of support for mumble strip improvements to CSAH 10 and CSAH 92. Council Action Consider a motion to authorize staff to submit a letter of support for mumble strip improvements to CSAH 10 and CSAH 92. Attachments 1. CSAH 10_Mumble Strips_REQUEST_Corcoran.pdf 2. CSAH 10 and CSAH 92 Mumble Strips- City of Corcoran Response.pdf 175 Public Works Hennepin County Public Works 1600 Prairie Drive Medina, MN 55340 hennepin.us June 26, 2026 Kevin Mattson, Public Works Director City of Corcoran 8200 County Road 116 Corcoran, MN, 55340 Re: Support for 2026 Highway Safety Improvement Program Application CSAH 10 (County Road 10) and CSAH 92 (County Road 92) Mumble Strips Dear Mr. Mattson: Hennepin County is submitting a 2026 Highway Safety Improvement Program (HSIP) application to seek federal formula funding to install mumble strips along CSAH 10 (County Road 10) and CSAH 92 (County Road 92) in the cities of Corcoran, Greenfield, Independence, and Rockford. Federal funding through this solicitation is available for program years 2030 and 2031 – noting that approximately $6 million in HSIP funding has been setaside for the installation of rumble and mumble strips along roadways owned by counties and cities. The following county roadways have been identified as suitable candidates for the installation of mumble strips: • CSAH 10 (County Road 10) from CSAH 50 (Rebecca Park Trail) to 700’ west of CSAH 19 (County Road 19) • CSAH 92 (County Road 92) from CSAH 6 (Watertown Road) to CSAH 50 (Rebecca Park Trail) This project presents an opportunity to incorporate safety improvements, including engineering strategies such as rumble strips, as identified in the county’s Toward Zero Deaths Action Plan that was adopted in 2025. This proven safety countermeasure is anticipated to reduce roadway departure crashes in rural areas. We would appreciate a letter of support from the city for this project. Please email an electronic version of the letter to Emily.Buell@hennepin.us. Attached is a letter template that you may use or modify as needed. Please send the PDF letter addressed to: Carla Stueve, County Highway Engineer with the address at the bottom of this letter. Hennepin County appreciates the opportunity to partner with the city on this important safety project. With the July 23rd application deadline, we would appreciate your support letter by July 16th. Please contact me at (612) 543-1963 or at Emily.Buell@hennepin.us with any questions. Sincerely, Emily Buell Transportation Project Delivery – Capital Programming Cc: Carla Stueve, P.E. – County Highway Engineer Jason Pieper, P.E. - Capital Programming Manager 176 www.corcoranmn.gov 8200 County Road 116 Corcoran, MN 55340 Phone: 763-420-2288 Administrative Offices Public Works Offices 9100 County Road 19 Corcoran, MN 55357 Phone: 763-420-2652 Phone: 763-420-8966 Police Department Offices 8200 County Road 116 Corcoran, MN 55340 July 6, 2026 Carla Stueve, P.E. County Highway Engineer Hennepin County Transportation Project Delivery 1600 Prairie Drive Medina, MN 55340 Dear Ms. Stueve: The City of Corcoran hereby expresses its support for Hennepin County’s 2026 Highway Safety Improvement Program federal formula funding application for the installation of mumble strips along CSAH 10 (County Road 10) and CSAH 92 (County Road 92) in the cities of Corcoran, Greenfield, Independence, and Rockford. The project is anticipated to include the installation of mumble strips along the following two roadways that have been identified as suitable candidates: • CSAH 10 (County Road 10) from CSAH 50 (Rebecca Park Trail) to 700’ west of CSAH 19 (County Road 19) • CSAH 92 (County Road 92) from CSAH 6 (Watertown Road) to CSAH 50 (Rebecca Park Trail) This project presents an opportunity to incorporate safety improvements, including engineering strategies such as mumble strips, as identified in the county’s Toward Zero Deaths Action Plan. To increase the likelihood of a successful pilot, the city understands that Hennepin County will coordinate the specific type and location of mumble strips as part of the project development process. Thank you for making us aware of this application and project, and for the opportunity to provide support. The City of Corcoran looks forward to working with you on this project. Sincerely, Tom McKee Mayor- City of Corcoran CC: Kevin Mattson, P.E.- Public Works Director/City Engineer Jay Tobin- City Administrator 177 www.corcoranmn.gov 8200 County Road 116 Corcoran, MN 55340 Phone: 763-420-2288 Administrative Offices Public Works Offices 9100 County Road 19 Corcoran, MN 55357 Phone: 763-420-2652 Phone: 763-420-8966 Police Department Offices 8200 County Road 116 Corcoran, MN 55340 178 STAFF REPORT Agenda Item: 6.i Council Meeting: July 9, 2026 Prepared By: Darren Bohlsen, Topic: Resolution Approving Receipt of Community Safety Grant Award Action Required: Adoption Summary At the June 25, 2026 City Council Meeting, Council approved to accepted a Community Safety Grant award from CenterPoint Energy in the amount of $2,500 for the purchase of carbon monoxide detectors for new patrol vehicles. The attached Resolution was not included with the June 25th agenda item. Financial/Budget The Community Safety Grant awarded to the Corcoran Police Department is in the amount of $2,500. Recommendation Adopt Resolution 2026-48 Approving Receipt of Community Safety Grant Award from CenterPoint Energy Council Action Adopt Resolution 2026-48 Approving Receipt of Community Safety Grant Award from CenterPoint Energy Attachments 1. Resolution 2026-48 Accepting Community Safety Grant.doc 179 City of Corcoran July 9, 2026 County of Hennepin State of Minnesota RESOLUTION NO. 2026-48 Page 1 of 1 Motion By: Seconded By: RESOLUTION APPROVING RECIEPT OF COMMUNITY SAFETY GRANT AWARD WHEREAS, the City of Corcoran has been awarded a grant from Centerpoint Energy to support the purchase of carbon monoxide detectors for new patrol vehicles; and WHEREAS, the City Council has reviewed the terms and conditions of the grant and; THEREFORE, BE IT RESOLVED THAT, the Corcoran City Council hereby accepts the grant from Centerpoint Energy in the amount of $2,500.0 0 to support the purchase of carbon monoxide detectors for new patrol vehicles. BE IT FURTHER RESOLVED, that public safety staff are authorized to take all actions necessary to implement the grant-funded project, comply with applicable grant requirements, and the manage the grant fund in accordance with the grant agreement. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Friedrich, Michelle Friedrich, Michelle Lanterman, Mark Lanterman, Mark Nichols, Jeremy Nichols, Jeremy Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 9th day of July, 2026. ________________________________ Tom McKee - Mayor ATTEST: ____________________________________ City Seal Debra Johnson – City Clerk 180 STAFF REPORT Agenda Item: 6.j Council Meeting: July 9, 2026 Prepared By: Matt Gottschalk, Director of Public Safety Topic: Resolution Acknowledging Donation from Hanover Athletic Association Action Required: Adoption Summary The Hanover Athletic Association has made a financial donation of $1,000 the City of Corcoran for the Youth Firearm Safety Program. Recommendation Adopt Resolution 2026-53 Acknowledging the Donation from Hanover Athletic Association to the Youth Firearm Safety Program Council Action Adopt Resolution 2026-53 Acknowledging the Donation from Hanover Athletic Association to the Youth Firearm Safety Program Attachments 1. Resolution 2026-53 Acknowledging Donation from Hanover Athletic Association.doc 181 City of Corcoran July 9, 2026 County of Hennepin State of Minnesota RESOLUTION NO. 2026-53 Motion By: Seconded By: A RESOLUTION ACKNOWLEDGING DONATION FROM HANOVER ATHLETIC ASSOCIATION WHEREAS, the City of Corcoran supports the efforts of the Hanover Athletic Association; and WHEREAS, the Hanover Athletic Association made a financial donation to the City of Corcoran in the amount of $1,000.00 for the Youth Firearm Safety Program; WHEREAS, The City Council finds that it is appropriate to accept the donation as offered for the benefit of the Youth Firearm Safey Program, the City of Corcoran, and residents; NOW THEREFORE BE IT RESOLVED, the City Council of the City of Corcoran acknowledges the generosity of the Hanover Athletic Association and graciously accepts the donation. VOTING AYE VOTING NAY McKee, Tom McKee, Tom Friedrich, Michelle Friedrich, Michelle Lanterman, Mark Lanterman, Mark Nichols, Jeremy Nichols, Jeremy Vehrenkamp, Dean Vehrenkamp, Dean Whereupon, said Resolution is hereby declared adopted on this 9th day of July, 2026 ________________________________ Tom McKee – Mayor ATTEST: ___________________________________ Deba Johnson, City Clerk City Seal 182 STAFF REPORT Agenda Item: 6.k Council Meeting: July 9, 2026 Prepared By: Ryan Ganner, Human Resources Generalist Topic: Public Works Maintenance Worker - Rescind offer and reauthorization to hire Action Required: Approval Summary A candidate was selected and scheduled to start Monday 7/6/2026. The week prior to their start date they contacted the City with concerns about coming onboard. During a phone-call on the afternoon of Thursday 7/2/2026, the candidate and staff came to an agreement to push the start date back, and revisit the discussion with the candidate on Monday 7/6/2026. On Monday 7/6/2026, staff gave the candidate a deadline of Wednesday 7/8/2026 to communicate a decision on if they were coming onboard or not. We clarified in our communication with the candidate that if we did not receive confirmation on if they were accepting the position or not, we will be rescinding the accepted offer. To date, staff has not received any communication from the candidate regarding their decision, and as such staff recommends rescinding the offer and not moving forward with employment with the City. Financial/Budget This is a budgeted position for FY2026. Options Rescind the offer and reauthorize staff to hire the vacant Public Works Maintenance Worker position. Decline. Recommendation Rescind the offer and authorize staff to hire the vacant Public Works Maintenance Worker position. Council Action Consider a motion to rescind the offer and reauthorize staff to hire the vacant Public Works Maintenance Worker position. 183 STAFF REPORT Agenda Item: 9.a Council Meeting: July 9, 2026 Prepared By: Deb Johnson, City Clerk Topic: Civic Campus Action Required: Discussion Council Action 184 STAFF REPORT Agenda Item: 10.a Council Meeting: July 9, 2026 Prepared By: Dwight Klingbeil, Planner Topic: Request for Rental Capacity Exemption - 20020 62nd Place Action Required: Council Action Attachments 1. Request for Rental Capacity Exemption - 20020 62nd Place.pdf 2. Email from Applicant's Realtor.pdf 185 Page 1 of 3 MEMO Date: July 9, 2026 To: City Council From: Dwight Klingbeil, Planner Re: Request for exemption from Rental Dwelling License Capacity – Subject Property: 20020 62nd Place Request: Rudra Pratap Chakraborty requests that the City Council grant an exemption from the rental dwelling capacity requirements to allow the property at 20020 62nd Place to be used for rental operations. Background: Mr. Chakraborty purchased this property in October, 2024. In his written narrative, he explains that he and his family will be temporarily relocating out of state for a work assignment and will be away from the property from August 1, 2026, through July 30, 2027. Following this period, Mr. Chakraborty intends to resume occupancy at this address. Mr. Chakraborty also notes that another townhome within the same development, located at 20032 62nd Place was recently sold. This property was originally listed for $485,000 but ultimately sold for approximately $450,000. Mr. Chakraborty is working with his realtor to obtain documentation for this sale for the Council’s review. According to Mr. Chakraborty, his current mortgage balance is $473,247.06. Based on the recent sale in his neighborhood, he believes that selling his home for a one-year relocation would result in a significant financial loss and create a hardship for him and his family. Because of these circumstances, Mr. Chakraborty is requesting a one-year exemption from the rental dwelling license capacity for this block, allowing him to rent his property while he is working out of state. Rental Capacity: Chapter 118.03.I.1. states: “In a low-density residential zoning district (5 units or less per acre), no more than 15% of the lots on any block shall be eligible to obtain a rental license and the number of rental 186 Page 2 of 3 licenses shall be capped as set forth in the table below, unless an exemption is granted by the City Council as provided herein or the rental dwelling qualifies as a residential facility licensed by the state. Table 1 indicates how many lots per block are able to be licensed as a rental property based on the lots that exist on the block. The subject property is located on Rental Block 107, which permits a maximum of twenty rental dwelling licenses pursuant to the above-mentioned section. As of the date of this memo, all twenty rental dwelling licenses have been issued for this block and are in good standing. Exemption Process: Staff reviewed the Rental Dwelling License Ordinance and have identified a section that allows Council to grant an exemption from the license capacity. Specifically, Chapter 118.03.I.2.c. states: c. If the number of rental dwellings meets or exceeds the permitted number of rental dwellings per defined block on or after the effective date of this chapter, no additional rental licenses shall be approved for the block, unless an exemption is granted by the City Council due to a demonstrated financial hardship of a property owner who owns no more than one other residential property within the City or the rental dwelling qualifies as a State licensed residential facility. Bona fide existing rental licenses may be renewed, however, should a rental license not be renewed, or if the rental license is revoked or lapses, the rental license shall not be reinstated unless it is in conformance with this subchapter and other applicable sections of the City Code. Options for Council: Staff has reviewed Chapter 118 of the City Code, along with the request from Mr. Chakraborty and have identified the following options for Council: 1. Approve Mr. Chakraborty’s request for a one-year exemption from the rental dwelling license capacity. 2. Deny Mr. Chakraborty’s request for a one-year exemption from the rental dwelling license capacity. 187 Page 3 of 3 Figure 1: Status of issued rental dwelling licenses in Block 107 as of June 29, 2026 (per the City of Corcoran Rental Dwelling License Inventory) 188 This message was sent from outside of the organization. Please do not click links or open attachments unless you recognize the source of this email and know the content is safe. Outlook 20032 62nd pl From Rowdheer Reddy Kapidi <rowdheer@gmail.com> Date Thu 7/2/2026 12:33 PM To Dwight Klingbeil <DKlingbeil@corcoranmn.gov> Hi Dwight, I am the buyer’s agent for 20032 62nd Place. The purchase price is $450,000, and the closing is scheduled for July 10th. Thank you, and have a great day. Thanks Rowdheer 7/8/26, 8:35 AM Mail - Dwight Klingbeil - Outlook https://outlook.office.com/mail/inbox/id/AAQkAGM2MDFlYTY5LTc5M2YtNGU0YS1hZTQ2LTRhZmFhNDk5YzY1MAAQAIjnvOJqFI1Fik19v5Hg12Y%3D 1/1189 STAFF REPORT Agenda Item: 10.b Council Meeting: July 9, 2026 Prepared By: Deb Johnson, City Clerk Topic: Charter and Parks and Trails Commissioner Recommendations Action Required: Approval Summary The Council subgroup committee is conducting interviews and will bring recommendations for appointments to the open Charter and Parks and Trails Commissioner seats at the July 7, 2026 City Council Meeting. Recommendation Appoint Charter and Parks & Trails Commissioners as recommended by the council subgroup committee. Council Action Appoint Charter and Parks & Trails Commissioners as recommended by the council subgroup committee. 190 STAFF REPORT Agenda Item: 13.a Council Meeting: July 9, 2026 Prepared By: Deb Johnson, City Clerk Topic: 2026 City Council Schedule Action Required: Information Only Council Action Information Only Attachments 1. 2026 City Council Meeting Calendar as of 07.01.26.pdf 191 192 City of Corcoran 2026 City Council Schedule (as of July 1, 2026) Below is a tentative schedule for City Council meetings and events - subject to change. July 9, 2026 5:30pm Work Session – Budget Goals and Priorities July 9, 2026 • 2025 Audit Review • 2023 State Bonding Water Projects Engineering Proposals July 9 – 12, 2026 – HAMEL RODEO July 23, 2026 5:30 Work Session – Heritage Park Ribbon Cutting July 23, 2026 • 3rd Quarter Financial Report • Lost Loon IUP and Variance August 4, 2026* (NOTE: Tuesday) NIGHT TO UNITE August 4, 2026 6-7:30pm – Civic Campus Public Engagement/Open House @ Night to Unite (Public Works) August 11, 2026 PRIMARY ELECTION DAY August 13, 2026 5:30 pm Work Session – Civic Campus Not to Exceed Bond August 13, 2026 August 14 & 15, 2026 – COUNTRY DAZE August 27, 2026 August 29, 2026 – LIONS TRACTOR PULL September 10, 2026 5:30pm Work Session – Civic Campus Design September 10, 2026 September 11, 2026 BARK IN THE PARK September 12, 2026 LIONS DEMO DERBY September 24, 2026 October 8, 2026 5:30pm Work Session – Civic Campus Design October 8, 2026 October 22, 2026 October 29, 2026 TRUNK OR TREAT 193 November 3, 2025 GENERAL ELECTION DAY November 12, 2026 • Canvass Election Results November 23, 2026* NOTE: (Monday) December 8, 2026 HOLIDAY TOY & FOOD DRIVE December 10, 2026 194