HomeMy WebLinkAbout2022 Annual Comprehensive Financial ReportCITY GOALS:
2022
Annual Comprehensive Financial Report
City Of Edina, Minnesota
For The Fiscal Year Ended December 31, 2022
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CITY OF EDINA, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FISCAL YEAR ENDED DECEMBER 31, 2022
Prepared by:
Department of Finance
Alisha McAndrews – Finance Director
Pa Thao – Assistant Finance Director
Tenzin Dongchung – Accounting Coordinator
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2022
INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 4
Organization 5
Organization Chart 6
FINANCIAL SECTION
Independent Auditors’ Report 7
Management’s Discussion and Analysis 11
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements
Balance Sheet – Governmental Funds 25
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position 26
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 27
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 28
Statement of Net Position – Proprietary Funds 29
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds 30
Statement of Cash Flows – Proprietary Funds 31
Statement of Fiduciary Net Position – Custodial Funds 33
Statement of Changes in Fiduciary Net Position – Custodial Funds 33
Notes to Financial Statements 34
Required Supplementary Information
Budgetary Comparison Schedules
Budgetary Comparison Schedule – General Fund 75
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
Budgetary Comparison Schedule – Housing and Redevelopment Authority
(HRA) Fund 79
Other Postemployment Benefits Plan Schedule of Changes in the City’s Total
OPEB Liability and Related Ratios 80
Defined Benefit Pension Plans GERF/PEPFF Retirement Funds 81
GERF Schedule of City’s and Nonemployer Proportionate Share of Net
Pension Liability and Schedule of City Contributions 81
PEPFF Schedule of City’s Proportionate Share of Net Pension Liability and
Schedule of City Contributions 82
Notes to Required Supplementary Information 83
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds 91
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds 92
Special Revenue Fund – Community Development Block Grant
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 93
Special Revenue Fund – Police
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 94
Special Revenue Fund – Braemar Memorial
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 95
Special Revenue Fund – Pedestrian and Cyclist Safety
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 96
Special Revenue Fund – Conservation and Sustainability
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 97
Major Governmental Fund – Debt Service
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 98
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
Major Governmental Fund – Construction Capital Projects
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 99
Combining Statement of Net Position – Nonmajor Proprietary Funds 100
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position – Nonmajor Proprietary Funds 101
Combining Statement of Cash Flows – Nonmajor Proprietary Funds 102
Combining Statement of Fiduciary Net Position – Custodial Funds 103
Combining Statement of Changes in Fiduciary Net Position – Custodial Funds 103
Supplementary Financial Information 104
Tax Capacity, Tax Levies, and Tax Capacity Rates 104
Combining Schedule of Bonded Indebtedness 105
Schedule of Balance Sheet Accounts – Tax Increment Financing Districts 107
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Tax
Increment Financing Districts 108
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component 109
Changes in Net Position 111
Fund Balances of Governmental Funds 113
Changes in Fund Balances of Governmental Funds 115
Revenue Capacity 117
Assessed Value, Actual Value, and Tax Capacity of Taxable Property 117
Direct and Overlapping Tax Capacity Rates 118
Principal Property Taxpayers 119
Property Tax Levies and Collections 120
Debt Capacity 121
Ratios of Outstanding Debt by Type 121
Ratios of General Bonded Debt Outstanding 122
Direct and Overlapping Governmental Activities Debt 123
Legal Debt Margin Information 124
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
Pledged Revenue Coverage 125
Demographic and Economic Information 126
Demographic and Economic Statistics 126
Principal Employers 127
Operating Information
Full-Time Equivalent City Government Employees by Function 128
Operating Indicators by Function 129
Capital Asset Statistics by Function 130
(1)
June 27, 2023
To the Honorable Mayor, City Council, and Citizens of the City of Edina (City):
Minnesota statutes require that every city publish within six months of the close of each fiscal year a complete set
of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended
December 31, 2022.
Management assumes full responsibility for the completeness and reliability of all the information presented in this
report, based upon a comprehensive framework of internal control that it has established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable
rather than absolute assurance that the financial statements are free from material misstatement.
CliftonLarsonAllen, LLP, a firm of licensed certified public accountants, has issued an unmodified (clean) opinion
on the City’s financial statements for the year ended December 31, 2022. The independent auditors’ report is
located at the front of the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and
provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
Profile of the City
The City, incorporated in 1888, is a fully developed first-ring suburb of Minneapolis. The City currently occupies a
land area of 16 square miles and serves a population of 53,572. Currently, 98% of the City is developed with
55.5% of the land attributed to residential uses, 13.1% to roadways, and 11.8% supporting the park and open
spaces. The remainder of the land is used for commercial, industrial, and public/semi-public uses. The City is
empowered to levy a property tax on both real and personal property located within its boundaries.
The City has operated under the Council-Manager form of government since 1955. Policy-making and legislative
authority are vested in a City Council (Council) consisting of the Mayor and four other members, all elected on a
nonpartisan basis. The Council is responsible, among other things, for passing ordinances, adopting the budget,
appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies
and ordinances of the Council, for overseeing the day-to-day operations of the city government, and for
appointing the heads of the various departments. Council members serve four-year terms, with two Council
members elected every two years. The Mayor also serves a four-year term. The Council and Mayor are elected at
large.
The City provides a full range of services, including police, fire and emergency medical services; the construction
and maintenance of highways, streets, and other infrastructure; water and sewer services and recreational and
cultural activities and events.
The Council is required to adopt a final budget by no later than the close of the previous fiscal year. The annual
budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund,
function (e.g., public safety), and department (e.g., police). Department heads may use resources within a
department as they see fit. The City Manager may authorize transfers of budgeted amounts between
departments.
(2)
Local Economy
The City currently enjoys a favorable economic environment and local indicators point to continued stability. The
region, while noted for a strong retail sector, enjoyed considerable re-development in recent years. The re-
development consisted of varied manufacturing, medical and high-tech base that adds to the relative stability of
the unemployment rate. Major industries with headquarters or divisions within the government’s boundaries or in
close proximity include medical services, retail operations and banking services. Edina is home to over 50,000 jobs
that are expected to remain stable over the coming years.
The City has become known for its quality residential housing stock and attractive neighborhoods. To date,
approximately 98% of the available housing stock is in place. Although the emphasis has changed over the years
from exclusively single-family housing to a more balanced mix of housing types, the City’s concern for overall
quality in residential development remains a top priority.
The City enjoys a AAA bond rating and a Aaa bond rating from Standard and Poor’s and Moody’s, respectively.
Long-Term Financial Planning
The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan
and state law requires cities to update their plans every 10 years. The last plan was adopted in 2020. The
Comprehensive Plan guides development and redevelopment and addresses changes likely to occur due to
various social and market forces.
The City continues to focus on quality-of-life improvements throughout Edina. These efforts cover a broad array of
areas including protecting and improving the environment, revitalization of parks and public areas, expanding
recreational opportunities, addressing race and equity disparities, and increasing communication between City
representatives and the public.
The City is working closely with state government, federal government and neighboring communities to improve
the area’s state and county transportation network, which includes upgraded highways and well-placed pathways.
Funding for most of the transportation improvements will need to come from state, county, and federal sources,
with some minor portion supported by the local taxpayers.
Relevant Financial Policies
The City has adopted a set of financial management policies that focus on long-term financial planning. Policies
cover areas such as cash and investments, the operating budget, revenue, fund balance, capital outlay, and debt
management.
Assignments for fund balances and compensated absences are all calculated as specified in the policies. In
addition, the City has $19,878,774 unassigned fund balance in the general fund. This amount is $1,163,280
above the goal range identified in the policy.
Major Initiatives
The City is continually working to update our aging infrastructure. Our annually adopted six-year Capital
Improvement Plan includes spending and financing projections for these projects.
(3)
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Edina for its Annual Comprehensive Financial
Report for the fiscal year ended December 31, 2021. This was the twelfth consecutive year that the government
has achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the dedicated services of the Finance
Department staff. We would like to express our appreciation to all members of the department who assisted and
contributed to the preparation of this report. Credit also must be given to the Mayor and the City Council for their
unfailing support for maintaining the highest standards of professionalism in the management of the City’s
finances.
Respectfully submitted,
Alisha McAndrews, Finance Director
Pa Thao
Assistant Finance Director
Tenzin Dongchung
Accounting Coordinator
(4)
CITY OF EDINA, MINNESOTA
ORGANIZATION
DECEMBER 31, 2022
(5)
Term Expires
Mayor:
James Hovland December 31, 2024
Council Members:
Carolyn Jackson December 31, 2024
James Pierce December 31, 2024
Kevin Staunton December 31, 2022
Ron Anderson December 31, 2022
City Manager:
Scott Neal Appointed
Finance Director/Treasurer:
Alisha McAndrews Appointed
City Clerk:
Sharon Allison Appointed
(6)
CLA(CliftonLarsonAllenLLP)isanindependentnetworkmemberofCLAGlobal.SeeCLAglobal.com/disclaimer.
CliftonLarsonAllenLLP
CLAconnect.com
(7)
INDEPENDENT AUDITORS’ REPORT
City Council and Management
City of Edina, 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 Edina, as
of and for the year ended December 31, 2022, and the related notes to the financial statements, which
collectively comprise the City of Edina’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 Edina, as of December 31, 2022, 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 (GAAS) 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 Auditors’ Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City of Edina 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.
Change in Accounting Principle
As discussed in Note 1 to the financial statements, effective January 1, 2022, the City adopted new
accounting guidance for leases. The guidance requires lessees to recognize a right-to-use lease asset
and corresponding lease liability and lessors to recognize a lease receivable and corresponding lease
deferred inflow of resources for all leases with lease terms greater than twelve months. Our opinions
are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
City Council and Management
City of Edina, Minnesota
(8)
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City of Edina’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.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit.
x 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.
x Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City of Edina’s internal control. Accordingly, no such opinion
is expressed.
x 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.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City of Edina’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.
City Council and Management
City of Edina, Minnesota
(9)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, Other Postemployment
Benefits Plan Schedule of Changes in the City’s Total OPEB liability and Related Ratios, and Defined
Benefit Pension Plans Schedules 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 GAAS, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Edina’s basic financial statements. The combining and individual fund
financial statements and schedules, Tax Capacity, Tax Levies, and Tax Capacity Rates information,
Combining Schedule of Bonded Indebtedness, and Tax Increment Financing District Schedules are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance with
GAAS. In our opinion, the combining and individual fund financial statements and schedules, Tax
Capacity, Tax Levies, and Tax Capacity Rates information, Combining Schedule of Bonded
Indebtedness, and Tax Increment Financing District Schedules, are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditors’ report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
City Council and Management
City of Edina, Minnesota
(10)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 27,
2023, on our consideration of the City of Edina’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City of Edina’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 City of Edina’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 27, 2023
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CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(11)
As management of the City of Edina (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended
December 31, 2022. We encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal, which precedes this report.
FINANCIAL HIGHLIGHTS
x The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $336,025,126 (net position).
Of this amount, $73,130,987 (unrestricted net position) may be used to meet the City’s ongoing
obligations to citizens and creditors in accordance with the City’s fund designations and fiscal
policies.
x The City’s total net position increased by $7,245,512 from the prior year. Of that total,
$5,995,619 is the decrease in Governmental Activities net position and $13,241,131 is the
increase in Business-Type Activities net position.
x At the close of the 2022 fiscal year, the City’s governmental funds reported combined ending
fund balances of $109,165,188, an increase of $5,823,540 from the prior year. The increase can
be attributed mostly to an increase in the Construction fund.
o General Obligation Bonds, series 2022A, was issued in 2022 in the amount of
$10,465,000.
o General Obligation – Capital Improvement Bonds, series 2022B, was issued in 2022, in
the amount of $17,000,000.
o General Obligation – Permanent Improvement Revolving Bonds, series 2022A, was
issued in 2022, in the amount of $2,145,000.
x At the end of the current fiscal year, unassigned fund balance for the general fund was
$19,904,228, or 38% of total general fund expenditures.
x The City’s total bonded debt increased by $25,022,000 during the current fiscal year, from
$110,308,000 at the end of 2021 due to the debt issuance mentioned above.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference between them reported as
net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(12)
The statement of activities presents information showing how the City’s net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include general government, public
safety, public works, and parks. The business-type activities of the City include water, sewer,
stormwater, recycling, liquor, aquatic center, golf course, arena, and community activity centers.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements. All the funds of the City can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statement. By
doing so, readers may better understand the long-term impact of the City’s near-term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains four individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the general fund, Housing and
Redevelopment Authority fund, debt service fund, and the construction fund.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds are provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all governmental and proprietary funds. A
budgetary comparison statement has been provided for all governmental funds to demonstrate
compliance with these budgets.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(13)
Proprietary funds. The City maintains five major enterprise funds and four internal service
funds. Enterprise funds are used to report the same functions presented as business-type
activities in the governmental-wide financial statements. The City’s major enterprise funds are
used to account for its utility, liquor, aquatic center, golf, and arena operations.
Data from the other enterprise funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor enterprise funds are provided in the form of
combining statements elsewhere in this report.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail.
Internal service funds. Internal service funds are used as an accounting device to accumulate
and allocate costs internally among the City’s various functions. The City utilizes four internal
service funds to account for insurance and risk management activities, equipment operations, IT
services, and facilities management. These services have been allocated proportionately to
governmental and business-type activities in the government-wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the City’s
own programs. The accounting used for fiduciary funds is much like that used for proprietary
funds.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government–wide and fund financial statements.
Other information. The combining and individual fund financial statements and schedules referred to
earlier in connection with nonmajor governmental and enterprise funds, as well as internal service
funds, are presented immediately following the required supplementary information. Supplementary
financial information and the statistical section are the final two items presented.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $336,025,126 at the close of the most recent fiscal year.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(14)
The largest portion of the City’s net position ($192,859,025 or 57%) reflects its investment in capital
assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of Edina’s Net Position
2022 2021 2022 2021 2022 2021
Assets:
Current and
Other Assets 154,046,671$ 141,851,857$ 56,433,015$ 45,767,891$ 210,479,686$ 187,619,748$
Capital Assets 188,815,677 177,099,202 142,622,912 130,894,190 331,438,589 307,993,392
Total Assets 342,862,348$ 318,951,059$ 199,055,927$ 176,662,081$ 541,918,275$ 495,613,140$
Deferred Outflows of Resources:
OPEB Plan Deferments $ 1,627,575 $ 436,242 $ 165,311 $ 40,254 $ 1,792,886 $ 476,496
Pension Plan Deferments 31,848,524 19,205,795 2,230,686 2,855,311 34,079,210 22,061,106
Total Deferred Outflows
of Resources $ 33,476,099 $ 19,642,037 $ 2,395,997 $ 2,895,565 $ 35,872,096 $ 22,537,602
Liabilities:
Long-Term Liabilities:
Due Within One Year 6,592,838$ 13,925,735$ 5,596,258$ 9,870,195$ 12,189,096$ 23,795,930$
Due in More Than One Year 148,633,383 82,895,114 54,480,212 41,449,445 203,113,595 124,344,559
Other Liabilities 13,784,251 7,535,930 7,372,903 4,153,105 21,157,154 11,689,035
Total Liabilities 169,010,472$ 104,356,779$ 67,449,373$ 55,472,745$ 236,459,845$ 159,829,524$
Deferred Inflows of Resources:
OPEB Plan Deferments 1,944,408$ 1,491,449$ 203,215$ 155,666$ 2,147,623$ 1,647,115$
Pension Plan Deferments 508,141 24,419,341 104,118 3,475,148 612,259 27,894,489
Leases 2,545,518 - - - 2,545,518 -
Total Deferred Inflows
of Resources 4,998,067$ 25,910,790$ 307,333$ 3,630,814$ 5,305,400$ 29,541,604$
Net Position:
Net Investment in
Capital Assets 102,453,359$ 116,754,295$ 90,405,666$ 86,975,121$ 192,859,025$ 203,729,416$
Restricted 70,035,114 76,262,266 - 1,225,093 70,035,114 77,487,359
Unrestricted 29,841,435 15,308,966 43,289,552 32,253,873 73,130,987 47,562,839
Total Net Position 202,329,908$ 208,325,527$ 133,695,218$ 120,454,087$ 336,025,126$ 328,779,614$
Governmental Activities Business-Type Activities Total
A portion of the City’s net position ($70,035,114) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($73,130,987)
may be used to meet the City’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all of the categories of
net position reported, both for the government as a whole, as well as for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
There was an increase of $25,568,148 in unrestricted net position. This was mainly due to increased
enterprise revenues in the utilities fund.
The increases in deferred outflows of resources and decreases in deferred inflows of resources relate
to the changes in the City’s share of state pension plan amounts while the increase in long-term
liabilities is primarily attributable to regular scheduled payments on the City’s outstanding bonds,
partially offset by newly issued debt.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(15)
As shown below, the City’s net position increased by $7,245,512 during the current fiscal year. Factors
contributing to this change are discussed in the next two sections.
City of Edina’s Changes in Net Position
2022 2021 2022 2021 2022 2021
Revenues:
Program Revenues:
Charges for Services 19,453,141$ 13,529,378$ 59,483,228$ 52,785,310$ 78,936,369$ 66,314,688$
Operating Grants and
Contributions 6,792,587 2,721,724 271,640 404,419 7,064,227 3,126,143
Capital Grants and
Contributions 4,943,744 4,030,108 - - 4,943,744 4,030,108
General Revenues:
Property Taxes 45,074,974 41,826,967 - - 45,074,974 41,826,967
Other Taxes 4,817,545 11,403,292 - - 4,817,545 11,403,292
Gain on Disposal
of Assets 53,576 101,404 - - 53,576 101,404
Unrestricted Investment
Earnings (2,903,247) (372,080) (980,198) (141,650) (3,883,445) (513,730)
Total Revenues 78,232,320 73,240,793 58,774,670 53,048,079 137,006,990 126,288,872
Expenses:
General Government 19,199,880 14,844,785 - - 19,199,880 14,844,785
Public Safety 29,290,638 24,288,956 - - 29,290,638 24,288,956
Public Works 23,018,094 11,497,445 - - 23,018,094 11,497,445
Parks 7,928,925 7,365,756 - - 7,928,925 7,365,756
Interest on Long-Term Debt 1,709,865 1,282,299 - - 1,709,865 1,282,299
Water - - 7,449,657 9,094,274 7,449,657 9,094,274
Sewer - - 8,612,892 7,690,708 8,612,892 7,690,708
Stormwater - - 2,735,091 3,146,475 2,735,091 3,146,475
Recycling - - 1,838,148 1,956,546 1,838,148 1,956,546
Liquor - - 13,725,070 13,435,305 13,725,070 13,435,305
Aquatic Center - - 1,218,383 1,052,346 1,218,383 1,052,346
Golf Course - - 5,282,761 4,822,338 5,282,761 4,822,338
Arena - - 3,214,462 2,882,067 3,214,462 2,882,067
Community Activity
Centers - - 4,537,612 3,231,622 4,537,612 3,231,622
Total Expenses 81,147,402 59,279,241 48,614,076 47,311,681 129,761,478 106,590,922
Increase in Net Position
Before Transfers (2,915,082) 13,961,552 10,160,594 5,736,398 7,245,512 19,697,950
Transfers (3,080,537) 772,460 3,080,537 (772,460) - -
Change in Net Position (5,995,619) 14,734,012 13,241,131 4,963,938 7,245,512 19,697,950
Net Position - January 1 208,325,527 193,591,515 120,454,087 115,490,149 328,779,614 309,081,664
Net Position - December 31 202,329,908$ 208,325,527$ 133,695,218$ 120,454,087$ 336,025,126$ 328,779,614$
Governmental Activities Business-Type Activities Total
GOVERNMENTAL ACTIVITIES
Governmental activities decreased the City’s net position by $5,995,619, Key elements of the decrease
are as follows.
x Property taxes increased by $3,248,007 as the result of an increased general operating levy
that provides funding to continue existing service levels.
x Other taxes decreased by $6,585,747 due to a decrease in tax increment collections from the
Southdale 2 tax increment financing district.
x Investment earnings decreased by $2,531,167 in 2022 due to unrealized losses.
x Transfers of $3,400,792 of capital assets, including land improvements, buildings and
structures, vehicles and equipment and park infrastructure, from the general fund to
Edinborough Park and Centennial Lakes enterprise funds.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(16)
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services
25%
Operating grants and
contributions
8%
Capital grants and contributions
6%
Property taxes58%
Other taxes6%
Other-3%
Revenues by Source - Governmental Activities
-
5
10
15
20
25
30
Generalgovernment Public safety Public works Parks Interest onlong-termdebt
Millions
Expenses and Program Revenues - Governmental Activities
Expenses
Program revenue
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(17)
BUSINESS-TYPE ACTIVITIES
Business-type activities increased net position by $13,241,131, accounting for 183% of the City’s
growth in net position. Key elements of the current year increase are as follows:
x The utility fund had income before contributions and transfers of $11,214,514 for 2022. This
additional equity is used to maintain and invest in the utility infrastructure according to the City’s
CIP and utility rate study.
x The liquor fund had income before contributions and transfers of $624,235 for 2022. This
income is used to subsidize operations at other enterprise facilities.
x The golf course had an income before contributions and transfers of $751,061.
x The other enterprise funds had a loss before contributions and transfers of $2,518,091 in total.
These enterprises had operating expenses that exceeded revenues.
Charges for
services
96%
Capital grants
and
contributions
5%
Unrestricted
investment
earnings
-1%
Revenues by Source - Business-type Activities
-
2
4
6
8
10
12
14
16
Water Sewer Storm Recycling Liquor Aquatic Golf Arena Community
Millions
Expenses and Program Revenues - Business-type Activities
Expenses
Program revenue
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(18)
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined ending fund
balances of $109,165,188, an increase of $5,823,540 in comparison with the prior year. Approximately
18% of this total amount ($19,904,228) constitutes unassigned fund balance. The remainder of the fund
balance is 1) restricted by external creditors, grantors, laws, or regulations ($54,105,464), or 2) assigned
by internal constraints ($35,073,508), or 3) nonspendable in the form of prepaid items ($81,988).
The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned
fund balance of the general fund was $19,904,228. As a measure of the general fund’s liquidity,
unassigned fund balance represents 38% of total general fund expenditures.
The fund balance of the City’s general fund increased by $1,861,921 during the current fiscal year. Key
factors related to this increase include:
x Total general fund expenditures exceeded budget by $298,215, but revenues were $3,095,668
over budget. This is due to an increase in licenses and permits as well as intergovernmental
revenue related to federal response and recovery funding for COVID-19.
x The general fund transferred $750,482 of 2021 surplus primarily to the construction fund for
capital projects.
The Housing and Redevelopment Authority fund balance decreased by $5,585,903 in the current fiscal
year due to a decrease in tax increment collections and more spent on capital outlay.
The debt service fund has a total fund balance of $6,702,038, all of which is restricted for the payment
of debt service. The net decrease in fund balance during the current year in the debt service fund was
$4,476,454. Fund balance decreased as the result of a $3,206,628 in General Property Taxes and
$11,293,281 in debt service payments.
The construction fund balance increased by $13,200,413 in 2022 due to transfers in of $850,482
primarily from the general fund as well as bonds issued.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(19)
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net position of the utility fund at the end of the year amounted to $37,571,970. The total
growth in net position from current year operations was $10,687,972. Operating revenues in the utilities
fund increased by 16.5% while expenses decreased by 9.1% in 2022. The revenue increase was due
to an increase in the water, sewer, and storm rates as well as connection fees in 2022. Expenses
decreased because of lower spending on contractual services in 2022 than in 2021. The City invested
$16,879,450 in utility fund capital assets during 2022, a 72% increase from 2021.
Unrestricted net position of the liquor fund at the end of the year amounted to $1,605,108. Total net
position decreased by $371,092. The liquor fund continues to transfer profits back into other City funds,
including the arena, centennial lakes and art center funds. The liquor fund made transfers totaling
$1,000,000 to these other funds in 2022. The transfers out were greater than operating income of
$693,691 in 2022, leading to the reduction in net position in the liquor fund in 2022.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $2,239,676.
Unrestricted net position of the golf course fund at the end of the year amounted to $263,531, an
improvement of $1,284,425 from the prior year. Operating income for the golf course fund was
$943,687 in 2022, compared to $549,017 in 2021, a sign of improving profitability.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($91,778) an
increase in the deficit by $44,429 from the prior year. Revenues increased by $185,891 over 2021 while
expenses increased by $327,672. The operating loss for the arena was $640,789 for 2022 compared to
$560,189 for 2022.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, revenues were $3,095,668 more than budget, as the continued commercial and
residential redevelopment of the City increased our licenses and permits, which exceeded budget by
$2,012,146, and surpluses in state and federal aid of $2,433,236 over budget. These increases offset
deficits in fines and forfeits and tax revenues, which together came in ($210,610) under budget.
During the year, expenditures were over budget by $298,215 due to spending of federal ARPA funds.
General government were over budget by $928,238, which was offset by public safety, public works
and parks coming in under budget by $928,893.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(20)
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City’s investment in capital assets for its governmental and business-type activities
as of December 31, 2022, amounted to $331,438,589 (net of accumulated depreciation and
amortization). This investment in capital assets included land, land improvements, intangible assets
such as easements, infrastructure assets (roads, bridges, sidewalks, and similar items), buildings,
vehicles, equipment, parks, and construction in progress. The total increase in the City’s investment in
capital assets for the current fiscal year was 8%.
Major capital asset events during the current fiscal year included the following:
x A variety of utility infrastructure improvements, including water main, sanitary and storm sewer,
construction in progress as of the close of the fiscal year reached $26,335,355 in the utility fund.
x A variety of street construction, sidewalk and park projects; construction in progress as of the
close of the fiscal year reached $11,471,726 (PIR + PACS).
x The City has a number of public improvements underway in the Grandview district including
rehabilitation of the Wooddale Ave Bridge and the Grandview Pedestrian Bridge, and parking
and road improvements in the district. The construction in process cost was $6,785,495.
x Transferred $3,400,792 of net capital assets, including land improvements, buildings and
structures, vehicles and equipment and park infrastructure, from general fund to Edinborough
Park enterprise fund.
x Acquired $15,257,152 of land for new fire station.
City of Edina’s Capital Assets
(Net of Depreciation and Amortization)
2022 2021 2022 2021 2022 2021
Land and Land
Improvements 26,172,688$ 27,965,567$ 10,024,568$ 10,295,102$ 36,197,256$ 38,260,669$
Easements 253,000 253,000 35,600 35,600 288,600 288,600
Buildings and Structures 31,286,991 34,130,177 16,132,468 15,516,491 47,419,459 49,646,668
Machinery and Equipment 9,133,780 10,364,447 5,097,343 5,914,574 14,231,123 16,279,021
Infrastructure 76,378,237 81,127,850 86,643,381 86,425,752 163,021,618 167,553,602
Parks 9,001,056 10,767,120 981,368 - 9,982,424 10,767,120
Construction in Progress 36,576,896 12,491,041 23,683,873 12,706,671 60,260,769 25,197,712
Leased Assets 13,029 - 24,311 - 37,340 -
Total 188,815,677$ 177,099,202$ 142,622,912$ 130,894,190$ 331,438,589$ 307,993,392$
Governmental Activities Business-Type Activities Total
Additional information on the City’s capital assets can be found in Note 3.
Long-term debt. At the end of the current fiscal year, the total outstanding long-term debt is
$124,865,000, an increase of $14,557,000 from 2021. $30,065,000 is for general obligation
improvement debt that is supported by property tax levies and special assessments. This amount
increased $12,330,000 due to new issued debt.
$26,350,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s street
reconstruction program.
Also outstanding is $12,930,000 HRA public project revenue bonds which financed two gymnasiums,
the new public works facility, sports dome, outdoor rink at the arena, and improvements to Pamela
Park. This amount decreased from 2022 due to regularly scheduled principal payments.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(21)
City of Edina’s Outstanding Debt
2022 2021 2022 2021 2022 2021
General Obligation Bonds 30,065,000$ 17,735,000$ -$ -$ 30,065,000$ 17,735,000$
Public Improvement Bonds 26,350,000 27,740,000 - - 26,350,000 27,740,000
Public Project Revenue Bonds 12,930,000 13,970,000 - - 12,930,000 13,970,000
Tax Increment Financing Bonds 7,545,000 7,545,000 - - 7,545,000 7,545,000
Revenue Bonds - - 47,975,000 43,318,000 47,975,000 43,318,000
Total 76,890,000$ 66,990,000$ 47,975,000$ 43,318,000$ 124,865,000$ 110,308,000$
Governmental Activities Business-Type Activities Total
The City maintains an Aaa rating from Moody’s and an AAA rating from Standard & Poor’s.
State statutes limit the amount of general obligation debt a Minnesota city may issue up to 3% of total
Estimated Market Value. The current debt limitation for the City is $413,891,433. Only $53,460,000 of
the City’s outstanding debt is counted within the statutory limitation.
Additional information on the City’s long-term debt can be found in Note 5.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City strives to provide an uncommonly high quality of life for our residents and businesses and the
relatively healthy local economy helps to make this goal a reality. The unemployment rate in Edina has
remained under 5% (not seasonally adjusted) since mid-2013, which is below the state and national
levels. The City is home to Southdale Center, the nation’s first fully enclosed climate-controlled regional
shopping mall, Fairview Southdale hospital, as well as several corporate headquarters. In addition to its
healthy economy, Edina is known for excellent public schools, as the Edina school system has been
consistently selected as one of the best in the country. Ninety-eight percent of students graduate, with
eighty-nine percent pursuing some sort of post-secondary education.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2022
(22)
Property values in Edina decreased for several years from 2009-2012 and have risen each year since.
Estimated market value of real estate increased 3.5% for taxes payable in 2022 (market value in 2021).
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
The City collects property taxes based on tax capacity, which roughly equals estimated market value
multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are set
by state statute. Tax capacity for real estate increased 4.2% in 2021 for taxes payable in 2022 and
remained positive for the eighth consecutive year.
All these factors above were considered in preparing the City’s budget for the 2022 fiscal year. The
City’s adopted 2022 budget includes a property tax levy of $45,367,336 for all funds, an increase of
7.97% from the 2021 levy, with the increase being attributed to the introduction of the street
reconstruction levy, which will eventually replace special assessments for road reconstruction. The
increased levies are also for the City’s equipment replacement expenditures, HRA operating
expenditures, and general operating levy.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Annual Comprehensive Financial
Report can also be found on the internet at www.edinamn.gov.
(This page left blank intentionally.)
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(23)
Governmental Business-Type
Activities Activities Total
ASSETSCurrent Assets:
Cash and Investments 113,617,305$ 45,360,984$ 158,978,289$ Restricted Cash and Investments 474,743 - 474,743
Accrued Interest 515,958 223,791 739,749
Accounts Receivable, Net 1,731,275 7,259,976 8,991,251
Special Assessments Receivable 21,902,341 388,321 22,290,662
Internal balances (488,778) 488,778 - Leases Receivable 2,572,052 - 2,572,052
Due from Other Governments 2,497,334 654 2,497,988 Prepaid Items 648,038 508,150 1,156,188
Inventory - 2,202,361 2,202,361 Total Current Assets 143,470,268 56,433,015 199,903,283
Noncurrent Assets:
Investment in Joint Powers Agreement 1,770,353 - 1,770,353
Loans Receivable 8,806,050 - 8,806,050
Nondepreciable Capital Assets 58,234,979 24,004,814 82,239,793
Depreciable Capital Assets (Net)130,580,698 118,618,098 249,198,796 Total Noncurrent Assets 199,392,080 142,622,912 342,014,992
Total Assets 342,862,348 199,055,927 541,918,275
DEFERRED OUTFLOWS OF RESOURCES
OPEB Plan Deferments 1,627,575 165,311 1,792,886
Defined Benefit Pension Plans 31,848,524 2,230,686 34,079,210 Total Deferred Outflows of Resources 33,476,099 2,395,997 35,872,096
LIABILITIES
Current Liabilities:
Accounts Payable 4,737,165 5,268,630 10,005,795
Salaries Payable 1,777,551 411,092 2,188,643
Accrued Interest Payable 1,190,315 811,385 2,001,700
Contracts Payable 229,810 316,966 546,776
Due to Other Governments 308,127 244,108 552,235
Deposits Payable 1,715,349 - 1,715,349
Unearned Revenue 3,825,934 320,722 4,146,656
Compensated Absences Payable 1,972,970 330,902 2,303,872
Bonds Payable 4,617,000 5,231,000 9,848,000
Leases Payable 2,868 34,356 37,224
Total Current Liabilities 20,377,089 12,969,161 33,346,250
Noncurrent Liabilities:
Total OPEB Liability 3,159,278 290,008 3,449,286
Net Pension Liability 54,025,897 7,058,928 61,084,825
Compensated Absences Payable 2,959,455 496,352 3,455,807
Bonds and Loans Payable, Net 88,480,245 46,634,924 135,115,169
Leases Payable 8,508 - 8,508
Total Noncurrent Liabilities 148,633,383 54,480,212 203,113,595
Total Liabilities 169,010,472 67,449,373 236,459,845
DEFERRED INFLOWS OF RESOURCES
OPEB Plan Deferments 1,944,408 203,215 2,147,623
Defined Benefit Pension Plans 508,141 104,118 612,259
Leases 2,545,518 - 2,545,518
Total Deferred Inflows of Resources 4,998,067 307,333 5,305,400
NET POSITIONNet Investment in Capital Assets 102,453,359 90,405,666 192,859,025
Restricted for Tax Increments 26,925,138 - 26,925,138
Restricted for Affordable Housing 6,424,294 - 6,424,294
Restricted for Debt Service 7,388,493 - 7,388,493
Restricted for Highway Construction 20,054,543 - 20,054,543
Restricted for Capital Projects 4,393,998 - 4,393,998
Restricted for Parkland Dedication 58,086 - 58,086
Restricted for Police 851,352 - 851,352
Restricted for Braemar Golf Donations 127,965 - 127,965
Restricted for Pedestrian and Cyclist Improvements 1,005,864 - 1,005,864
Restricted for Conservation and Sustainability Initiatives 2,367,337 - 2,367,337
Restricted for Opioid Epidemic Response 438,044 - 438,044
Unrestricted 29,841,435 43,289,552 73,130,987
Total Net Position 202,329,908$ 133,695,218$ 336,025,126$
Primary Government
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(24)
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Expenses Services Contributions Contributions Activities Activities Total
Functions/Programs
Primary Government:
Governmental Activities:
General Government 19,199,880$ 5,873,349$ 3,042,324$ -$ (10,284,207)$ -$ (10,284,207)$
Public Safety 29,290,638 11,909,539 2,128,137 - (15,252,962) - (15,252,962)
Public Works 23,018,094 782,233 1,581,125 4,943,744 (15,710,992) - (15,710,992)
Parks 7,928,925 888,020 41,001 - (6,999,904) - (6,999,904)
Interest on Long-Term Debt 1,709,865 - - - (1,709,865) - (1,709,865)
Total Government Activities 81,147,402 19,453,141 6,792,587 4,943,744 (49,957,930) - (49,957,930)
Business-Type Activities:
Water 7,449,657 12,717,867 - - - 5,268,210 5,268,210
Sewer 8,612,892 12,706,062 - - - 4,093,170 4,093,170
Stormwater 2,735,091 5,389,214 84,415 - - 2,738,538 2,738,538
Recycling 1,838,148 1,485,925 115,532 - - (236,691) (236,691)
Liquor 13,725,070 14,427,474 - - - 702,404 702,404
Aquatic Center 1,218,383 1,144,569 - - - (73,814) (73,814)
Golf Course 5,282,761 6,080,771 26,895 - - 824,905 824,905
Arena 3,214,462 2,551,853 - - - (662,609) (662,609)
Community Activity Centers 4,537,612 2,979,493 44,798 - - (1,513,321) (1,513,321)
Total Business-Type Activities 48,614,076 59,483,228 271,640 - - 11,140,792 11,140,792
Total Primary Government 129,761,478$ 78,936,369$ 7,064,227$ 4,943,744$ (49,957,930) 11,140,792 (38,817,138)
General Revenues:
Property Taxes 45,074,974 - 45,074,974
Tax Increment Collections 1,720,243 - 1,720,243
Franchise Taxes 3,071,551 - 3,071,551
Lodging Taxes 25,751 - 25,751
Unrestricted Investment Earnings (2,903,247) (980,198) (3,883,445)
Gain on Disposal of Capital Assets 53,576 - 53,576
Transfers - Capital Assets (3,400,792) 3,400,792 -
Transfers - Internal Activities 320,255 (320,255) -
Total General Revenues and Transfers 43,962,311 2,100,339 46,062,650
Change in Net Position (5,995,619) 13,241,131 7,245,512
Net Position - Beginning 208,325,527 120,454,087 328,779,614
Net Position - Ending 202,329,908$ 133,695,218$ 336,025,126$
Net (Expense) Revenue and
Changes in Net PositionProgram Revenues
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(25)
Housing and Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
ASSETS
Cash and Investments 32,389,393$ 25,172,679$ 6,208,335$ 41,423,173$ 4,358,574$ 109,552,154$
Restricted Cash and
Investments - - 474,743 - - 474,743
Accrued Interest 98,452 143,595 - 254,397 19,514 515,958
Accounts Receivable 655,249 15,000 - 87,775 544,514 1,302,538
Taxes Receivable 290,770 (1,244) 23,982 36,309 - 349,817
Special Assessments
Receivable - - 1,855,727 20,046,614 - 21,902,341
Leases Receivable 2,572,052 - - - - 2,572,052
Due from Other Governments 469,944 1,590 21,860 1,625,885 371,702 2,490,981
Prepaid items 80,509 - - - 1,479 81,988
Loans Receivable - 8,806,050 - - - 8,806,050
Total Assets 36,556,369$ 34,137,670$ 8,584,647$ 63,474,153$ 5,295,783$ 148,048,622$
LIABILITIES
Accounts Payable 873,595$ 573,651$ 2,900$ 2,580,360$ 472,328$ 4,502,834$
Salaries Payable 1,622,738 8,468 - 6,037 10,997 1,648,240
Contracts Payable - - - 210,326 19,484 229,810
Due to Other Governments 225,219 80,080 - 1,717 933 307,949
Deposits Payable 1,602,310 113,039 - - - 1,715,349
Unearned Revenue 3,809,995 13,000 2,939 - - 3,825,934
Total Liabilities 8,133,857 788,238 5,839 2,798,440 503,742 12,230,116
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue - Taxes 241,532 (1,244) 23,982 36,309 - 300,579
Unavailable Revenue -
Special Assessments - - 1,852,788 20,018,234 - 21,871,022
Unavailable Revenue - Other - - - 1,583,828 352,371 1,936,199
Leases 2,545,518 - - - - 2,545,518
Total Deferred Inflows of
Resources 2,787,050 (1,244) 1,876,770 21,638,371 352,371 26,653,318
FUND BALANCE
Nonspendable 80,509 - - - 1,479 81,988
Restricted 58,086 33,350,676 6,702,038 9,556,473 4,438,191 54,105,464
Assigned 5,592,639 - - 29,480,869 - 35,073,508
Unassigned 19,904,228 - - - - 19,904,228
Total Fund Balance 25,635,462 33,350,676 6,702,038 39,037,342 4,439,670 109,165,188
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 36,556,369$ 34,137,670$ 8,584,647$ 63,474,153$ 5,295,783$ 148,048,622$
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(26)
Total Fund Balances - Governmental Funds 109,165,188$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets are included in net position, but are excluded from fund balances because
they do not represent financial resources.
Capital Assets and Leased Assets 341,893,202
Accumulated Depreciation and Amortization (153,077,525)
Long-term liabilities are included in net position, but are excluded from fund balances until
due and payable. Debt issuance premiums and discounts are excluded from net position
until amortized, but are included in fund balances upon issuance as other financing
sources and uses.
Bonds Payable (87,355,000)
Loans Payable (750,000)
Premium on Bonds (4,992,245)
Leases Payable (11,376)
Compensated Absences Payable (4,932,425)
Total OPEB Liability (3,159,278)
Net Pension Liability (54,025,897)
Accrued interest payable on long-term debt is included in net position, but is excluded from
fund balances until due and payable.(1,190,315)
Investment in joint powers agreement are not available to pay for current period expenditures,
and therefore, are not reported in the funds.1,770,353
The recognition of certain revenues and expenses/expenditures differ between the full
accrual governmental activities financial statements and the modified accrual governmental
fund financial statements.
Deferred Outflows - OPEB 1,627,575
Deferred Outflows - Pension 31,848,524
Deferred Inflows - OPEB (1,944,408)
Deferred Inflows - Pension (508,141)
Deferred Inflows - Property Taxes 300,579
Deferred Inflows - Special Assessments 21,871,022
Deferred Inflows - Other 1,936,199
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The assets and liabilities of the internal service fund are included in the
governmental activities in the statement of net position.3,863,876
Total Net Position - Governmental Activities 202,329,908$
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(27)
Housing and Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
REVENUES
General Property Taxes 36,497,426$ 235,598$ 3,206,628$ 5,156,593$ -$ 45,096,245$
Tax Increment Collections - 1,720,243 - - - 1,720,243
Franchise Taxes 808,850 - - 80,262 2,182,439 3,071,551
Lodging Tax 25,751 - - - - 25,751
Special Assessments - - 191,410 4,234,746 - 4,426,156
License and Permits 7,403,206 - - 78,892 - 7,482,098
Intergovernmental 4,321,986 - - 1,864,122 273,519 6,459,627
Charges for Services 5,785,986 173,508 - 294,917 - 6,254,411
Fines and Forfeitures 359,680 - - - - 359,680
Investment Income (Loss) (1,167,123) (680,996) - (959,017) (96,111) (2,903,247)
Rental of Property 711,100 - - - - 711,100
Other Revenues 180,557 4,131,953 - 90,515 334,227 4,737,252
Total Revenues 54,927,419 5,580,306 3,398,038 10,841,030 2,694,074 77,440,867
EXPENDITURES
Current:
General Government 10,339,058 7,099,850 - 375,839 154,092 17,968,839
Public Safety 26,026,375 - - 237,126 263,354 26,526,855
Public Works 9,418,764 - - 1,573,266 509,979 11,502,009
Parks 6,446,899 - - 24,024 382 6,471,305
Capital Outlay:
General Government 281,557 4,066,359 - 495,809 - 4,843,725
Public Safety 14,205 - - 16,639,445 - 16,653,650
Public Works - - - 6,841,698 951,211 7,792,909
Parks - - - 277,512 - 277,512
Community Development - - - - - -
Debt Service:
Principal 2,829 - 9,245,000 - - 9,247,829
Interest and Fiscal Charges 279 - 2,048,281 - - 2,048,560
Total Expenditures 52,529,966 11,166,209 11,293,281 26,464,719 1,879,018 103,333,193
REVENUES OVER (UNDER)
EXPENDITURES 2,397,453 (5,585,903) (7,895,243) (15,623,689) 815,056 (25,892,326)
OTHER FINANCING
SOURCES (USES)
Transfers In 207,900 - 2,765,516 850,482 - 3,823,898
Transfers Out (750,482) - - (2,765,516) - (3,515,998)
Sale of Capital Assets 7,050 - - 90,849 8,507 106,406
Bonds Issued - - 653,273 28,956,727 - 29,610,000
Premium on Bonds Issued - - - 1,691,560 - 1,691,560
Total Other Financing
Sources (Uses) (535,532) - 3,418,789 28,824,102 8,507 31,715,866
NET INCREASE (DECREASE)
IN FUND BALANCE 1,861,921 (5,585,903) (4,476,454) 13,200,413 823,563 5,823,540
Fund Balance - January 1 23,773,541 38,936,579 11,178,492 25,836,929 3,616,107 103,341,648
FUND BALANCE - DECEMBER 31 25,635,462$ 33,350,676$ 6,702,038$ 39,037,342$ 4,439,670$ 109,165,188$
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(28)
Total Net Change in Fund Balances - Governmental Funds 5,823,540$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital assets are recorded in net position and the cost is allocated over their estimated
useful lives as depreciation or amortization expense. However, fund balances are reduced
for the full cost of capital outlays at the time of purchase.
Capital Outlays 29,073,399
Depreciation and Amortization Expense (13,917,507)
Capital Assets Transferred to Business-Type Funds (3,400,792)
A gain or loss on the disposal of capital assets, including the difference between the carrying
value and any related sale proceeds, is included in the change in net position. However, only
the sale proceeds and insurance recoveries are included in the change in fund balances.
Proceeds from the Sale of Capital Assets (106,406)
Gain (Loss) on the Sale of Capital Assets 53,576
Revenues in the statement of activities that do not provide current financial resources
(property taxes, special assessment, and other unavailable receivables) are not reported
as revenues in the funds.500,622
The amount of debt issued, principal as well as any issuance premiums or discounts, are
reported in the governmental funds as a source of financing. Debt obligations are not
revenues in the Statement of Activities, but rather constitute long-term liabilities.(31,301,560)
Repayment of long-term debt does not affect the change in net position. However, it reduces
fund balances.9,247,829
Interest on long-term debt is included in the change in net position as it accrues, regardless
of when payment is due. However, they are only included in the change in fund balances
when due.(323,575)
Debt issuance premiums and discounts are included in the change in net position as they
are amortized over the life of the debt. Amortization for the current year is included in interest
expense on the Statement of Activities. 662,270
Pension and Other Postemployment Benefit (OPEB) expenditures in the governmental funds
are measured by current year employer contributions. Pension and OPEB expenses on the
Statement of Activities are measured by the change in the net pension liability/total OPEB
liability and the related deferred inflows and outflows of resources.
Pensions (2,227,354)
OPEB (104,214)
In the governmental funds, compensated absences expenditures are measured by the amount
of financial resources used (amounts actually paid). In the Statement of Activities, however,
compensated absences expenses are measured by the amounts earned during the year.
Compensated Absences (139,334)
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The change in net position of the internal service funds is included in the
governmental activities in the Statement of Activities.163,887
Change in Net Position - Governmental Activities (5,995,619)$
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(29)
Governmental
Activities
Nonmajor Total Internal
Aquatic Golf Enterprise Enterprise Service
Utilities Liquor Center Course Arena Funds Funds Funds
ASSETS
Current Assets:
Cash and Investments 36,100,218$ 2,098,931$ 2,286,277$ 1,870,596$ 608,097$ 2,396,865$ 45,360,984$ 4,065,151$
Interest Receivable 164,009 14,309 14,583 14,191 3,071 13,628 223,791 -
Accounts Receivable, Net 7,036,803 1,381 - 97,093 110,091 14,608 7,259,976 78,920
Special Assessments Receivable 388,321 - - - - - 388,321 -
Due from Other Governments - - - - - 654 654 6,353
Prepaid Expenses 504,836 731 - 2,583 - - 508,150 566,050
Inventory 21,770 2,084,246 - 96,345 - - 2,202,361 -
Total Current Assets 44,215,957 4,199,598 2,300,860 2,080,808 721,259 2,425,755 55,944,237 4,716,474
Noncurrent Assets:
Net Capital Assets 114,170,689 1,483,755 1,193,431 9,882,581 6,322,517 9,569,939 142,622,912 -
Total Assets 158,386,646 5,683,353 3,494,291 11,963,389 7,043,776 11,995,694 198,567,149 4,716,474
DEFERRED OUTFLOWS
OF RESOURCES
OPEB Deferred Outflows 46,109 29,935 - 26,351 25,297 37,619 165,311 -
Pension Deferred Outflows 623,779 558,241 21,963 403,965 238,537 384,201 2,230,686 -
Total Deferred Outflows of Resources 669,888 588,176 21,963 430,316 263,834 421,820 2,395,997 -
LIABILITIES
Current Liabilities:
Accounts Payable 4,151,948 805,769 2,500 117,784 86,666 103,963 5,268,630 251,969
Salaries Payable 107,020 101,260 2,305 73,430 46,423 80,654 411,092 111,673
Accrued Interest Payable 674,703 - 7,583 101,491 27,608 - 811,385 -
Contracts Payable 316,966 - - - - - 316,966 -
Due to Other Governments 31,843 167,746 64 18,855 12,828 12,772 244,108 178
Unearned Revenue - 13,496 170 291,116 1,911 14,029 320,722 -
Compensated Absences Payable 87,844 80,274 - 86,426 29,104 47,253 330,902 -
Bonds Payable - Current 4,292,000 - 85,000 590,000 264,000 - 5,231,000 -
Leases Payable - Current - - - 34,356 - - 34,356 -
Total Current Liabilities 9,662,324 1,168,545 97,622 1,313,458 468,540 258,671 12,969,161 363,820
Noncurrent Liabilities:
Total OPEB Liability 69,049 56,944 - 65,096 31,688 67,231 290,008 -
Net Pension Liability 1,973,926 1,766,539 69,500 1,278,331 754,841 1,215,791 7,058,928 -
Compensated Absences Payable 131,767 120,412 - 129,639 43,655 70,880 496,352 -
Bonds Payable, Net of Unamortized
Discounts and Premiums 36,733,199 - 397,655 6,909,682 2,594,388 - 46,634,924 -
Total Noncurrent Liabilities 38,907,941 1,943,895 467,155 8,382,748 3,424,572 1,353,902 54,480,212 -
Total Liabilities 48,570,265 3,112,440 564,777 9,696,206 3,893,112 1,612,573 67,449,373 363,820
DEFERRED INFLOWS
OF RESOURCES
OPEB Deferred Inflows 56,660 44,170 - 32,214 31,013 39,158 203,215 -
Pension Deferred Inflows 29,115 26,056 1,025 18,855 11,134 17,933 104,118 -
Total Deferred Inflows of Resources 85,775 70,226 1,025 51,069 42,147 57,091 307,333 -
Total Liabilities and Deferred
Inflows of Resources 48,656,040 3,182,666 565,802 9,747,275 3,935,259 1,669,664 67,756,706 363,820
NET POSITION
Net Investment in Capital Assets 72,828,524 1,483,755 710,776 2,348,543 3,464,129 9,569,939 90,405,666 -
Unrestricted 37,571,970 1,605,108 2,239,676 297,887 (91,778) 1,177,911 42,800,774 4,352,654
Total Net Position 110,400,494$ 3,088,863$ 2,950,452$ 2,646,430$ 3,372,351$ 10,747,850$ 133,206,440$ 4,352,654$
488,778
Net Position of Business-Type Activities 133,695,218$
Business-Type Activities - Enterprise Funds
Explanation of different between Proprietary Funds Statement of Revenue, Expenses, and Changes in
Fund Net Position and the Statement of Activities:
The City uses internal service funds to charge the cost of its risk management, equipment operations, IT, and facilities management to individual funds. This
amount represents the total income that has been allocated back to the business-type activities in the government-wide Statement of Activities that is attributable
to the City's business-type activities each year:
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(30)
Governmental
Activities
Nonmajor Total Internal
Aquatic Golf Enterprise Enterprise Service
Utilities Liquor Center Course Arena Funds Funds Funds
OPERATING REVENUES
Sales - Liquor -$ 13,922,518$ -$ -$ -$ -$ 13,922,518$ -$
Sales - Retail - 504,956 2,189 308,509 44,527 11,590 871,771 -
Sales - Utilities 27,849,485 - - - - - 27,849,485 -
Sales - Concessions - - 167,906 7,907 289,026 76,527 541,366 -
Memberships - - 405,045 287,427 - 144,409 836,881 -
Admissions - - 504,562 1,662,516 49,923 732,767 2,949,768 -
Lodging Tax - - - - - 4,286 4,286 -
Building Rental - - 64,579 324,352 1,881,282 819,411 3,089,624 -
Rental of Equipment - - - 399,137 6,543 167,221 572,901 -
Greens Fees - - - 1,955,273 - 302,692 2,257,965 -
Other Fees 4,447,964 - 288 1,118,051 261,660 715,111 6,543,074 7,840,410
Total Operating Revenues 32,297,449 14,427,474 1,144,569 6,063,172 2,532,961 2,974,014 59,439,639 7,840,410
OPERATING EXPENSES
Cost of Sales and Services - 10,010,262 70,354 225,925 121,410 30,804 10,458,755 -
Personal Services 2,607,110 2,414,975 493,737 2,403,534 1,117,814 1,914,447 10,951,617 2,599,882
Contractual Services 8,653,012 685,083 243,133 780,867 1,011,598 765,911 12,139,604 3,722,154
Commodities 1,172,984 100,801 120,416 431,152 95,915 441,187 2,362,455 1,319,366
Internal Services 1,573,672 397,369 41,819 322,661 236,115 377,294 2,948,930 -
Depreciation and Amortization 5,935,306 125,293 243,055 955,346 590,898 1,015,026 8,864,924 -
Total Operating Expenses 19,942,084 13,733,783 1,212,514 5,119,485 3,173,750 4,544,669 47,726,285 7,641,402
OPERATING INCOME (LOSS)12,355,365 693,691 (67,945) 943,687 (640,789) (1,570,655) 11,713,354 199,008
NONOPERATING REVENUES
(EXPENSES)
Intergovernmental 199,947 - - (3,105) 16,709 - 213,551 -
Investment Income (628,260) (69,456) (84,310) (67,782) (18,336) (112,054) (980,198) -
Donations - - - - - 43,057 43,057 -
Interest and Fiscal Charges (1,184,322) - (18,467) (248,753) (73,000) - (1,524,542) -
Amortization of Bond Premiums
(Discounts) 470,165 - 11,626 79,415 28,069 - 589,275 -
Miscellaneous 1,619 - - 47,599 2,183 7,220 58,621 -
Total Nonoperating
Revenues (Expenses) (1,140,851) (69,456) (91,151) (192,626) (44,375) (61,777) (1,600,236) -
INCOME (LOSS) BEFORE
TRANSFERS 11,214,514 624,235 (159,096) 751,061 (685,164) (1,632,432) 10,113,118 199,008
TRANSFERS
Capital Contributions from (to) Other Funds - - 24,500 - 110,986 3,265,306 3,400,792 -
Transfers In - 4,673 16,621 59,401 347,454 778,138 1,206,287 12,355
Transfers Out (526,542) (1,000,000) - - - - (1,526,542) -
Total Transfers (526,542) (995,327) 41,121 59,401 458,440 4,043,444 3,080,537 12,355
CHANGE IN NET POSITION 10,687,972 (371,092) (117,975) 810,462 (226,724) 2,411,012 13,193,655 211,363
Net Position - January 1 99,712,522 3,459,955 3,068,427 1,835,968 3,599,075 8,336,838 120,012,785 4,141,291
NET POSITION - DECEMBER 31 110,400,494$ 3,088,863$ 2,950,452$ 2,646,430$ 3,372,351$ 10,747,850$ 133,206,440$ 4,352,654$
47,476
Change in Net Position of Business-Type Activities 13,241,131$
Business-Type Activities - Enterprise Funds
Explanation of difference between Proprietary Funds Statement of Revenue, Expenses, and
Changes in Fund Net Position and the Statement of Activities:
The City uses internal service funds to charge the cost of its risk management, equipment operations, IT, and facilities
management to individual funds. This amount represents the income that has been allocated back to the business-type
activities in the government-wide Statement of Activities that is attributable to the City's business-type activities:
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(31)
Governmental
Activities
Nonmajor Total Internal
Aquatic Golf Enterprise Enterprise Service
Utilities Liquor Center Course Arena Funds Funds Funds
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from Customers and Users 31,936,177$ 14,258,261$ 1,144,739$ 6,050,919$ 2,593,629$ 3,200,869$ 59,184,594$ -$
Receipts from City Funds - - - - - - - 7,781,524
Payment to Suppliers (9,100,206) (11,384,274) (474,498) (1,736,673) (1,494,245) (1,755,105) (25,945,001) (5,009,970)
Payment to Employees (2,576,626) (2,217,729) (452,214) (2,235,088) (1,048,851) (1,886,327) (10,416,835) (2,566,926)
Net Cash Provided (Used) by
Operating Activities 20,259,345 656,258 218,027 2,079,158 50,533 (440,563) 22,822,758 204,628
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Grants and Contributions - - - - 16,709 - 16,709 -
Transfer from Other Funds - 4,673 16,621 59,401 347,454 778,138 1,206,287 12,355
Transfer to Other Funds (526,542) (1,000,000) - - - - (1,526,542) -
Net Cash Provided (Used) by
Noncapital Financing Activities (526,542) (995,327) 16,621 59,401 364,163 778,138 (303,546) 12,355
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
State Grant 199,947 - - - - - 199,947 -
Proceeds from Capital Debt 15,519,332 - - - - - 15,519,332 -
Acquisition of Capital Assets (16,879,450) - - (322,118) - (41,399) (17,242,967) -
Principal Paid on Bonds and Leases (5,757,000) - (80,000) (1,226,476) (2,036,000) - (9,099,476) -
Interest and Fiscal Charges on Debt (939,616) - (19,455) (258,974) (75,402) - (1,293,447) -
Net Cash Provided (Used) by Capital
and Related Financing Activities (7,856,787) - (99,455) (1,807,568) (2,111,402) (41,399) (11,916,611) -
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest Received 389,297 31,655 32,264 36,991 4,992 30,151 525,350 -
Purchase of Investments (5,216,338) - - - - - (5,216,338) -
Sale of Investments - - - 584,900 1,768,271 - 2,353,171 -
Net Cash Flows Provided (Used) by
Investing Activities (4,827,041) 31,655 32,264 621,891 1,773,263 30,151 (2,337,817) -
NET INCREASE (DECREASE) IN CASH 7,048,975 (307,414) 167,457 952,882 76,557 326,327 8,264,784 216,983
Cash - January 1 21,761,307 2,522,005 2,236,702 1,032,413 556,343 2,180,700 30,289,470 3,848,168
CASH - DECEMBER 31 28,810,282$ 2,214,591$ 2,404,159$ 1,985,295$ 632,900$ 2,507,027$ 38,554,254$ 4,065,151$
CASH AND INVESTMENTS
PRESENTED IN THE
STATEMENT OF NET POSITION
Cash 28,810,282$ 2,214,591$ 2,404,159$ 1,985,295$ 632,900$ 2,507,027$ 38,554,254$ 4,065,151$
Investments 7,289,936 (115,660) (117,882) (114,699) (24,803) (110,162) 6,806,730 -
Total Cash and Investments 36,100,218$ 2,098,931$ 2,286,277$ 1,870,596$ 608,097$ 2,396,865$ 45,360,984$ 4,065,151$
Business-Type Activities - Enterprise Funds
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(32)
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY
OPERATING ACTIVITIES
Operating Income (Loss) 12,355,365$ 693,691$ (67,945)$ 943,687$ (640,789)$ (1,570,655)$ 11,713,354$ 199,008$
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:
Depreciation 5,935,306 125,293 243,055 955,346 590,898 1,015,026 8,864,924 -
Miscellaneous Income 1,619 - - 44,494 2,183 195,876 244,172 -
(Increase) Decrease in:
Accounts Receivable (315,089) (939) - (81,202) 67,425 34,375 (295,430) (52,633)
Special Assessments Receivable (47,802) - - - - - (47,802) -
Due from Other Governments - - - - - 2,416 2,416 (6,253)
Inventory (1,683) (137,226) - (17,621) - - (156,530) -
Prepaid Expenses (504,836) 7,817 - (880) - - (497,899) 63,426
Deferred Outflows of Resources 191,822 85,729 (17,681) 65,623 38,972 135,103 499,568 -
Increase (Decrease) in:
Accounts Payable 2,785,271 (57,806) 1,160 39,175 (35,775) (145,142) 2,586,883 (30,602)
Salaries Payable 3,179 13,785 (437) 12,005 4,537 16,086 49,155 32,956
Due to Other Governments 20,710 (3,544) 64 3,258 6,568 5,233 32,289 (1,274)
Unearned Revenue - (168,274) 170 24,455 (8,940) (5,812) (158,401) -
Total OPEB Liability 25,603 13,964 - 13,965 13,966 20,949 88,447 -
Net Pension Liability 845,550 887,319 63,828 630,114 361,070 488,639 3,276,520 -
Compensated Absences (41,836) (29,320) - 15,937 (6,440) 6,232 (55,427) -
Deferred Inflows of Resources (993,834) (774,231) (4,187) (569,198) (343,142) (638,889) (3,323,481) -
Total Adjustments 7,903,980 (37,433) 285,972 1,135,471 691,322 1,130,092 11,109,404 5,620
Net Cash Provided (Used) by
Operating Activities 20,259,345$ 656,258$ 218,027$ 2,079,158$ 50,533$ (440,563)$ 22,822,758$ 204,628$
NONCASH INVESTING ACTIVITIES
Increase in Fair Value of Investments (575,671)$ (105,830)$ (121,091)$ (109,123)$ (26,669)$ (139,276)$ (1,077,660)$ -$
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of Capital Assets with
Contracts Payable 316,966$ -$ -$ -$ -$ -$ 316,966$ -$
Capital Assets Contributed
(to) from Other Funds -$ -$ 24,500$ -$ 110,986$ 3,265,306$ 3,400,792$ -$
Business-Type Activities - Enterprise Funds
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
DECEMBER 31, 2022
See accompanying Notes to Financial Statements.
(33)
Custodial Funds
Cash and Investments 291,815$
Accounts Receivable 135
Due from Other Governmental Units 117,348
Total Assets 409,298
Accounts Payable 95,478
Salaries Payable 16,276
Due to Other Governmental Units 103,923
Unearned Revenue 5,087
Total Liabilities 220,764
Restricted for Organizations and Other Governments 188,534$
ASSETS
LIABILITIES
NET POSITION
CITY OF EDINA, MINNESOTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
YEAR ENDED DECEMBER 31, 2022
Collections on Behalf of Others 1,709,648$
Payments on Behalf of Others 1,721,899
Net Increase (Decrease) in Fiduciary Net Position (12,251)
Net Position - Beginning 200,785
Net Position - Ending 188,534$
ADDITIONS
DEDUCTIONS
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(34)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Edina (the City) was incorporated in 1888 and operates under the state of
Minnesota Statutory Plan B form of government. The governing body consists of a five-
member City Council elected by voters of the City.
The financial statements of the City have been prepared in conformity with accounting
principles generally accepted in the United States of America as applied to governmental
units by the Governmental Accounting Standards Board (GASB). The following is a
summary of significant accounting policies.
A. Financial Reporting Entity
The City’s financial reporting entity consists of (a) the primary government,
(b) organizations for which the primary government is financially accountable, and
(c) other organizations for which the nature and significance of their relationship with the
primary government are such that exclusion would cause the reporting entity’s financial
statements to be misleading or incomplete. The primary government is financially
accountable for the component unit if it appoints a voting majority of the component
unit’s governing body and is able to impose its will on the component unit or there is a
potential for the component unit to provide specific financial benefits to, or impose
specific financial burdens on, the primary government.
As required by accounting principles generally accepted in the United States of America,
the financial statements of the reporting entity include those of the City of Edina (the
primary government) and its component units. The component unit discussed below is
included in the City’s reporting entity because of the significance of its operational or
financial relationships with the City.
Component Unit
In conformity with accounting principles generally accepted in the United States of
America, the financial statements of the component unit have been included in the
financial reporting entity as a blended component unit.
The Housing and Redevelopment Authority (HRA) is an entity legally separate from the
City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City’s operations for two reasons. First, the HRA’s governing body is substantively
the same as the governing body of the City. Specifically, the HRA board consists of five
members, all of which are City Council members. Second, management of the City has
operational responsibility for the HRA. Specifically, sales of bonds or other obligations of
the HRA are approved by the City Council; the HRA follows the budget process for City
departments in accordance with City policy; the annual HRA budget is approved by City
Council; the HRA submits its plan for development and redevelopment to the City
Council for approval; lastly, the administrative structure and management practices and
policies of the HRA are approved by the City Council. The activity of the HRA is reported
in the Special Revenue Funds. Separate financial statements are not prepared for the
HRA.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the City.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or business-type activity are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or business-type activity.
Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or
business-type activity and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or business type activity.
Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
Aggregated information for the remaining nonmajor governmental and enterprise funds
is reported in a single column in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. The City’s only fiduciary fund type, custodial funds,
are custodial in nature and use the economic resources measurement focus. Revenues
are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally
are recorded when a liability is incurred, as under accrual accounting. However, debt
service expenditures, as well as expenditures related to compensated absences, other
postemployment benefits (OPEB), net pension liabilities, and claims and judgments are
recorded only when payment is due.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Property taxes, special assessments, intergovernmental revenues, charges for services
and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only
the portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other
revenue items are considered to be measurable and available only when cash is
received by the City.
The City reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The special revenue Housing and Redevelopment Authority fund is used to account
for revenues from several sources (property taxes, bond proceeds, investment
earnings, etc.) that are restricted for housing and redevelopment.
The debt service fund accounts for the payment of principal and interest on General
Obligation, Permanent Improvement Revolving, Public Project Revenue Bonds, and
Edina Emerald Energy Program Bonds.
The capital projects construction fund accounts for the various special assessment
and state aid projects throughout the City. This fund also provides financing for
capital improvements as restricted in the City’s capital improvement budget.
The City reports the following major proprietary funds:
The utilities fund accounts for the provision of water, sewer, storm, and recycling
services to the City’s residents.
The liquor fund accounts for the operation of the City’s three liquor stores.
The aquatic center fund accounts for the operation of the City’s aquatic center.
The golf course fund accounts for the operation of the City’s two golf courses and a
golf dome.
The arena fund accounts for the operation of the City’s ice arena.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Additionally, the City reports the following fund types:
Internal service funds – the risk management, equipment operations, information
technology, and facilities management internal service funds account for costs of
insurance and risk management programs, equipment operations, IT services, and
facilities management across all municipal departments. Internal service funds
operate in a manner similar to enterprise funds; however, it provides services
primarily to other departments within the City.
Custodial funds – the Police Seizure, Public Safety Training Facility, and Minnesota
Task Force 1 funds account for fees collected for other government agencies.
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are transactions
that would be treated as revenues, expenditures or expenses if they involved external
organizations, such as buying goods and services or payments in lieu of taxes, are
similarly treated when they involve other funds of the City of Edina. Elimination of these
charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants
for goods, services, or privileges provided, 2) operating grants and contributions, and
3) capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund’s principal ongoing
operations. The principal operating revenues of the City’s enterprise funds and internal
service fund are charges to customers for sales and services. Operating expenses for
the enterprise funds and internal service fund include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
Aggregated information for the internal service funds is reported in a single column in the
proprietary fund financial statements. These services have been allocated
proportionately to governmental and business-type activities in the government-wide
financial statements. The cost of these services is reported in the appropriate functional
activity.
Depreciation expense is included in the direct expenses of each function. Interest on
long-term debt is considered an indirect expense and is reported separately on the
statement of activities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Cash and Investments
Cash and Investments
The cash balances of the City and its component unit are pooled and invested for the
purpose of increasing earnings through investment activities. The pool’s investments are
reported at fair value at year-end, except for investments in external investment pools,
which are stated at amortized cost. The City has the ability and intent to hold its
investments to maturity. The individual funds’ portions of the pool’s fair value are
presented as “Cash and investments.” Earnings from such investments are allocated to
the respective funds on the basis of applicable cash balance participation by each fund.
The City provides temporary advances to funds that have insufficient cash and
investment balances by means of an advance from another fund shown as interfund
receivables in the advancing fund, and an interfund payable in the fund with the deficit,
until adequate resources are received. These interfund balances are eliminated on the
government-wide financial statements.
The City categorizes its fair value measurements within the fair value hierarchy
established by accounting principles generally accepted in the United States of America.
The hierarchy is based on the valuation inputs used to measure the fair value of the
asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2
inputs are significant other observable inputs; Level 3 inputs are significant unobservable
inputs.
Debt securities classified in Level 2 of the fair value hierarchy are valued using
evaluations based on various market and industry inputs. The City does not have Level
3 investments.
See Note 2 for the City’s recurring fair value measurements as of the current year-end.
Restricted Cash and Investments
Restricted cash and investments represent bond proceeds held for specific purposes.
Earnings on these investments are allocated directly to these funds.
Cash Equivalents
For the purposes of the statement of cash flows, the City considers all highly liquid debt
instruments with an original maturity from the time of purchase by the City of three
months or less to be cash equivalents. The proprietary funds’ portion in the government-
wide cash and investment management pool is considered to be cash equivalent.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. Receivables and Payables
During the course of operations, numerous transactions occur between individual funds
for goods provided or services rendered. Short-term interfund loans are classified as
“due to/from other funds.” All short-term interfund receivables and payables at
December 31, 2022 are planned to be eliminated in 2023. Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government- wide financial statements as “internal balances.”
Property taxes and special assessments receivables have been reported net of
estimated uncollectible accounts. Because utility bills are considered liens on property,
no estimated uncollectible amounts are established. Uncollectible amounts are not
material for other receivables and have not been reported.
F. Revenue Recognition
1. Property Tax Revenue Recognition
The City Council annually adopts a tax levy and certifies it to the County in
December (levy/assessment date) of each year for collection in the following year.
The County is responsible for billing and collecting all property taxes for itself, the
City, the local School District, and other taxing authorities. Such taxes become a lien
on January 1 and are recorded as receivables by the City at that date. Real property
taxes are payable (by property owners) on May 15 and October 15 of each calendar
year. Personal property taxes are payable by taxpayers on February 28 and June 30
of each year. These taxes are collected by the County and remitted to the City on or
before July 7 and December 2 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability
to enforce payment of property taxes by property owners. The County possesses this
authority.
Government-Wide Financial Statements
The City recognizes property tax revenue in the period for which the taxes were
levied. Uncollectible property taxes are not material and have not been reported.
Governmental Fund Financial Statements
The City recognizes property tax revenue when it becomes both measurable and
available to finance expenditures of the current period. In practice, current and
delinquent taxes and state credits received by the City in July, December, and
January are recognized as revenue for the current year. Taxes collected by the
County by December 31 (remitted to the City the following January) and taxes and
credits not received at the year-end are classified as delinquent and due from County
taxes receivable. The portion of delinquent taxes not collected by the City in January
are fully offset by deferred inflows of resources because they are not available to
finance current expenditures.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. Revenue Recognition (Continued)
2. Special Assessment Revenue Recognition
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
consistent with the term of the related bond issue. Collection of annual installments
(including interest) is handled by the County Auditor in the same manner as property
taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a
lien upon that property until full payment is made or the amount is determined to be
excessive by the City Council or court action. If special assessments are allowed to
go delinquent, the property is subject to tax forfeit sale. Pursuant to state statutes, a
property shall be subject to a tax forfeit sale after three years unless it is
homesteaded, agricultural, or seasonal recreational land in which event the property
is subject to such sale after five years.
Government-Wide Financial Statements
The City recognizes special assessment revenue in the period that the assessment
roll was adopted by the City Council. Uncollectible special assessments are not
material and have not been reported.
Governmental Fund Financial Statements
Revenue from special assessments is recognized by the City when it becomes
measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are
recognized as revenue for the current year. Special assessments that are collected
by the County by December 31 (remitted to the City the following January) are also
recognized as revenue for the current year. All remaining delinquent, deferred, and
special deferred assessments receivable in governmental funds are completely
offset by deferred inflows of resources. The following is a breakdown of special
assessments receivable at December 31, 2022:
Enterprise
Funds
Debt
Service Construction Utilities
Special Assessments Receivable:
Delinquent -$ 66,459$ 36,142$
Deferred 1,855,727 19,980,155 352,179
Total 1,855,727$ 20,046,614$ 388,321$
Governmental Funds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Inventories and Prepaid Items
Inventories of the proprietary funds are stated at cost and are recorded as expenses
when consumed rather than when purchased. All inventories use the first-in/first-out
(FIFO) method.
Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial statements
and are recorded as expenditures or expenses when consumed.
H. Capital Assets
Capital assets, which include property, buildings, improvements, equipment, parks,
infrastructure assets (roads, bridges, sidewalks, and similar items), and intangible assets
such as easements, are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are also
reported in the proprietary fund financial statements but not in the governmental fund
financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of
more than $10,000 (amount not rounded) and an estimated useful life in excess of three
years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated acquisition
value at the date of donation. The costs of normal maintenance and repairs that do not
add to the value of the asset or materially extend assets lives are not capitalized.
Infrastructure assets include all of the City’s assets since inception.
Property, plant, and equipment of the primary government are depreciated using the
straight-line method over the following estimated useful lives:
Assets Life
Golf Course 10 to 35 Years
Land Improvements 15 to 50 Years
Building and Structures 15 to 40 Years
Furniture and Office Equipment 5 to 10 Years
Vehicles and Equipment 3 to 20 Years
Parks 5 to 100 Years
Utility Infrastructure 20 to 50 Years
Capital assets that are not depreciated include land, easements, and construction in
progress.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. Leases
The City determines if an arrangement is a lease at inception. Leases are included in
lease receivables and deferred inflows of resources in the statements of net position and
fund financial statements.
Lease receivables represent the City’s claim to receive lease payments over the lease
term, as specified in the contract, in an exchange or exchange-like transaction. Lease
receivables are recognized at commencement date based on the present value of
expected lease payments over the lease term, reduced by any provision for estimated
uncollectible amounts. Interest revenue is recognized ratably over the contract term.
Deferred inflows of resources related to leases are recognized at the commencement
date based on the initial measurement of the lease receivable, plus any payments
received from the lessee at or before the commencement of the lease term that relate to
future periods, less any lease incentives paid to, or on behalf of, the lessee at or before
the commencement of the lease term. The deferred inflows related to leases are
recognized as lease revenue in a systematic and rational manner over the lease term.
The City determines if an arrangement is a lease at inception. Leases are included in
lease assets and lease liabilities in the statements of net position.
Lease assets represent the City’s control of the right to use an underlying asset for the
lease term, as specified in the contract, in an exchange or exchange-like transaction.
Lease assets are recognized at the commencement date based on the initial
measurement of the lease liability, plus any payments made to the lessor at or before
the commencement of the lease term and certain direct costs. Lease assets are
amortized in a systematic and rational manner over the shorter of the lease term or the
useful life of the underlying asset.
Lease liabilities represent the City’s obligation to make lease payments arising from the
lease. Lease liabilities are recognized at the commencement date based on the present
value of expected lease payments over the lease term, less any lease incentives.
Interest expense is recognized ratably over the contract term.
The lease term may include options to extend or terminate the lease when it is
reasonably certain that the City will exercise that option.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
J. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation and
sick pay benefits. All vacation pay is accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in
governmental funds only if they have matured, for example, as a result of employee
resignations and retirements. In accordance with the provisions of accounting principles
generally accepted in the United States of America no liability is recorded for nonvesting
accumulating rights to receive sick pay benefits. However, a liability is recognized in the
government-wide and proprietary fund financial statements for that portion of
accumulating sick leave benefits that is vested as severance pay. According to City
policy, vested sick leave benefits are liquidated into a health care savings plan upon
separation.
K. State-Wide Pension Plans
For purposes of measuring the net pension liability, deferred outflows/inflows of
resources, and pension expense, information about the fiduciary net position of the
Public Employees Retirement Association (PERA) and additions to/deductions from the
PERA’s fiduciary net position have been determined on the same basis as they are
reported by the PERA except that the PERA’s fiscal year-end is June 30. For this
purpose, plan contributions are recognized as of employer payroll paid dates and benefit
payments and refunds are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
Pension liabilities are liquidated by various governmental funds based on where the
corresponding employees’ salaries are allocated.
L. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities, business-type activities, or proprietary
fund type statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bond using the effective interest method. Bonds payable
are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued plus any premium received is reported as other financing sources. Discounts
on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service
expenditures.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net assets that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The City has two items which qualifies for reporting in
this category.
Deferred outflows of resources related to pensions and OPEB are reported in the
government-wide and enterprise funds statement of net position. These deferred
outflows result from differences between expected and actual experience, changes of
assumptions, differences between projected and actual investment earnings, changes in
proportion, and contributions to the plan subsequent to the measurement date and
before the end of the reporting period. These amounts are deferred and amortized as
required under pension and OPEB standards.
In addition to liabilities, statements of financial position or balance sheets will sometimes
report a separate section for deferred inflows of resources. This separate financial
statement element represents an acquisition of net assets that applies to future periods
and so will not be recognized as an inflow of resources (revenue) until that time. The
City has four items which qualify for reporting in this category.
Unavailable revenue is reported only in the governmental funds balance sheet. The
governmental funds report unavailable revenue from three sources: property taxes,
special assessments, and amounts due from other governments. These amounts are
deferred and recognized as an inflow of resources in the period the amounts become
available.
Deferred inflows of resources related to leases are reported in the government-wide and
fund financial statements. These deferred inflows represent future revenues related to
long-term lease receivables.
Deferred inflows of resources related to pensions and OPEB are reported in the
government-wide and enterprise fund statement of net position. These deferred inflows
result from differences between expected and actual experience, changes of
assumptions, and the difference between projected and actual investment earnings, and
are amortized as required under pension and OPEB standards.
N. Interfund Transactions
Interfund services provided and used are accounted for as revenues, expenditures, or
expenses. Transactions that constitute reimbursements to a fund for expenditures/
expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures/expenses in the reimbursing fund and as reductions of
expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an
interfund loan receivable or payable which offsets the movement of cash between funds.
All other interfund transactions are reported as transfers and are eliminated to the extent
possible on the government-wide statements.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Fund Balance Classification
In the fund financial statements, governmental funds report fund balance in
classifications that disclose constraints for which amounts in those funds can be spent.
These classifications are as follows:
x Nonspendable – Consists of amounts that are not in spendable form, such as
prepaid items, inventory, and other long-term assets.
x Restricted – Consists of amounts related to externally imposed constraints
established by creditors, grantors, or contributors; or constraints imposed by
state statutory provisions.
x Committed – Consists of internally imposed constraints that are established by
resolution of the City Council. Those committed amounts cannot be used for any
other purpose unless the City Council removes or changes the specified use by
taking the same type of action it employed to previously commit those amounts.
x Assigned – Consists of internally imposed constraints. These constraints consist
of amounts intended to be used by the City for specific purposes but do not meet
the criteria to be classified as restricted or committed. In the general fund,
assigned amounts represent intended uses established by the City Council. In
the fund balance policy, authority to assign amounts for specific purposes is
limited to the City Council.
x Unassigned – The residual classification for the general fund which also reflects
negative residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s
policy to first use restricted resources, and then use unrestricted resources as they are
needed.
When committed, assigned, or unassigned resources are available for use, it is the
City’s policy to use resources in the following order: 1) committed, 2) assigned, and
3) unassigned.
P. Net Position
In the government-wide and proprietary fund financial statements, net position
represents the difference between assets, deferred outflows of resources, liabilities, and
deferred inflows of resources. Net position is displayed in three components:
x Net Investment in Capital Assets – Consists of capital assets, net of
accumulated depreciation, reduced by the outstanding balance of any long-term
debt used to build or acquire the capital assets.
x Restricted Net Position – Consists of net position restricted when there are
limitations imposed on their use through external restrictions imposed by
creditors, grantors, or laws or regulations of other governments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(46)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. Net Position (Continued)
x Unrestricted Net Position – All other net position that do not meet the definition
of “restricted” or “net investment in capital assets.”
When both restricted and unrestricted resources are available for use, it is the City’s
policy to first use restricted resources, and then use unrestricted resources as they are
needed.
Q. Use of Estimates
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates that affect amounts reported in the financial statements during the reporting
period. Actual results could differ from such estimates.
R. Adoption of New Accounting Standards
In June 2017, the Governmental Accounting Standards Board (GASB) issued GASB
Statement No. 87, Leases. This standard requires the recognition of certain lease assets
and liabilities for leases that previously were classified as operating leases and as
inflows of resources or outflows of resources recognized based on the payment
provisions of the contract. It establishes a single model for lease accounting based on
the foundational principle that leases are financings of the right to use an underlying
asset. Under this standard, a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources.
NOTE 2 CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits (157,104)$
Cash on hand 34,016
Investments 159,867,935
Total 159,744,847$
Cash and investments are presented in the financial statements as follows:
Cash and Investments - Statement of Net Position 158,978,289$
Restricted Cash and Investments - Statement of
Net Position 474,743
Cash and Investments - Statement of Fiduciary
Net Position 291,815
Total 159,744,847$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(47)
NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED)
B. Deposits
In accordance with applicable Minnesota Statutes, the City maintains deposits at
depository banks authorized by the City Council, including checking accounts, savings
accounts, and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial Credit Risk – In the case of deposits, this is the risk that in the event of a
bank failure, the City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit
insurance, corporate surety bond, or collateral. The market value of collateral
pledged must equal 110% of the deposits not covered by federal deposit insurance
or corporate surety bonds. Authorized collateral includes treasury bills, notes, and
bonds; issues of U.S. government agencies; general obligations rated “A” or better;
revenue obligations rated “AA” or better; irrevocable standard letters of credit issued
by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes
require that securities pledged as collateral be held in safekeeping in a restricted
account at the Federal Reserve Bank or in an account at a trust department of a
commercial bank or other financial institution that is not owned or controlled by the
financial institution furnishing the collateral. The City’s investment policy does not
contain further restrictions on the types of collateral required.
At year-end, the carrying amount of the City’s deposits was ($161,918) while the
balance on the bank records was $46,934. At December 31, 2022, all of the City’s
deposits were properly collateralized in accordance with state statutes.
C. Investments
The City has the following investments at year-end:
Fair Value
Measurements
Investment Rating Agency Using < 1 1 to 5 6 to 10 > 10 Total
U.S. Treasuries N/A N/A Level 1 2,677,580$ 20,510,812$ 1,988,947$ 362,671$ 25,540,010$
Negotiable CDs N/R N/R Level 2 2,939,534 3,600,823 - - 6,540,357
SBA Notes AA+ S&P Level 1 - 56,657 318,341 - 374,998
FHLB AA+ S&P Level 2 5,119,247 3,342,438 - - 8,461,685
FHLMC AA+ S&P Level 2 1,275,601 1,009,694 127,771 1,236,995 3,650,061
FNMA AA+ S&P Level 2 - 1,683,107 835,272 5,639,469 8,157,848
FFCB AA+ S&P Level 2 1,472,570 1,514,522 - - 2,987,092
Municipal Bonds AA- to AAA S&P Level 2 18,301,015 40,539,214 809,441 - 59,649,670 Corporate Bonds AA+ S&P Level 2 6,906,690 - - - 6,906,690
Subtotal 38,692,237$ 72,257,267$ 4,079,772$ 7,239,135$
Money Market*37,599,344
4M Fund*180
Total investments 159,867,935$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments do not have maturities
Interest Risk -
Credit Risk Maturity Duration in Years
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(48)
NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED)
C. Investments (Continued)
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota
Statutes and the board of directors of the League of Minnesota Cities. The 4M Fund is
an external investment pool not registered with the Securities Exchange Commission
(SEC) that follows the same regulatory rules of the SEC. The City’s investment in the 4M
Fund is measured at amortized cost which approximates fair value. The fair value of its
position in the pool is the same as the value of the pool shares. The fund does not have
any limitations or restrictions on participant withdrawals.
Investments are subject to various risks, the following of which are considered the most
significant:
Custodial Credit Risk – For investments, this is the risk that in the event of a failure
of the counterparty to an investment transaction (typically a broker-dealer) the City
would not be able to recover the value of its investments or collateral securities that
are in the possession of an outside party. The City’s investment policy specifically
addresses custodial credit risk, requiring the City to limit its exposure by purchasing
insured or registered investments, or by the control of who holds the securities.
Credit Risk – This is the risk that an issuer or other counterparty to an investment will
not fulfill its obligations. Minnesota Statutes limit the City’s investments to direct
obligations or obligations guaranteed by the United States or its agencies; shares of
investment companies registered under the Federal Investment Company Act of 1940
that receive the highest credit rating, are rated in one of the two highest rating
categories by a statistical rating agency, and all of the investments have a final
maturity of thirteen months or less; general 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 repurchase agreements and securities
lending agreements with financial institutions qualified as a “depository” by the
government entity, with banks that are members of the Federal Reserve System with
capitalization exceeding $10,000,000, that are a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or certain Minnesota
securities broker-dealers. The City’s investment policies specifically address credit risk,
further limiting the City’s exposure to credit risk by requiring that all state and local
government obligations to be rated “AA” or better by a national rating agency.
Concentration Risk – This is the risk associated with investing a significant portion of
the City’s investment (considered 5% or more) in the securities of a single issuer,
excluding U.S. guaranteed investments (such as Treasuries), investment pools, and
mutual funds. The City’s investment policies specifically address the City’s desire to
limit concentration risk, but do not set specific guidelines for measurement of this risk.
At year-end, the City’s investments include 5.10% in securities issued by FNMA and
5.29% in securities issued by FHLB.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(49)
NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED)
C. Investments (Continued)
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for which
an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set specific
guidelines for measurement of this risk.
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2022 is as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental Activities:
Capital Assets Not Being Depreciated:
Land 21,405,083$ -$ -$ -$ 21,405,083$
Easements 253,000 - - - 253,000
Construction in Progress 12,491,041 27,870,386 (3,690,444) (94,087) 36,576,896
Total Capital Assets Not Being
Depreciated 34,149,124 27,870,386 (3,690,444) (94,087) 58,234,979
Capital Assets Being Depreciated:
Land Improvements 27,389,566 19,100 - (11,025,205) 16,383,461
Buildings and Structures 64,663,512 155,690 - (8,884,476) 55,934,726
Furniture and Office Equipment 4,050,967 11,374 - - 4,062,341
Vehicles and Equipment 22,356,514 1,077,749 (1,075,326) (29,416) 22,329,521
Infrastructure 156,222,111 3,400,560 - - 159,622,671
Parks 26,203,877 228,984 - (1,121,563) 25,311,298
Capital Assets Being Amortized:
Right-to-Use Vehicles and Equipment 14,205 - - - 14,205
Total Capital Assets Being
Depreciated or Amortized 300,900,752 4,893,457 (1,075,326) (21,060,660) 283,658,223
Less Accumulated Depreciation for:
Land Improvements (20,829,082) (954,108) - 10,167,334 (11,615,856)
Buildings and Structures (30,858,791) (1,530,373) - 7,473,088 (24,916,076)
Furniture and Office Equipment (3,725,511) (68,489) - - (3,794,000)
Vehicles and Equipment (11,992,067) (2,255,586) 1,022,496 29,416 (13,195,741)
Infrastructure (75,094,261) (8,150,173) - - (83,244,434)
Parks (15,436,757) (957,602) - 84,117 (16,310,242)
Less Accumulated Amortization for:
Right-to-Use Vehicles and Equipment - (1,176) - - (1,176)
Total Accumulated Depreciation
and Amortization (157,936,469) (13,917,507) 1,022,496 17,753,955 (153,077,525)
Total Capital Assets Being
Depreciated or Amortized, Net 142,964,283 (9,024,050) (52,830) (3,306,705) 130,580,698
Governmental Activities Capital Assets, Net 177,113,407$ 18,846,336$ (3,743,274)$ (3,400,792)$ 188,815,677$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(50)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-Type Activities:
Capital Assets Not Being Depreciated:
Land 285,341$ -$ -$ -$ 285,341$
Easements 35,600 - - - 35,600
Construction in Progress 13,160,101 16,791,560 (6,267,788) 23,683,873
Total Capital Assets Not Being
Depreciated 13,481,042 16,791,560 (6,267,788) - 24,004,814
Capital Assets Being Depreciated:
Land Improvements and Golf Course 15,722,715 39,796 - 11,025,204 26,787,715
Buildings and Structures 39,229,354 365,703 - 9,072,652 48,667,709
Furniture and Office Equipment 140,448 - - - 140,448
Vehicles and Equipment 14,996,312 378,365 (15,759) 70,814 15,429,732
Utility Infrastructure 159,045,932 5,653,906 - - 164,699,838
Parks - - - 1,121,563 1,121,563
Capital Assets Being Amortized:
Right-to-Use Vehicles and Equipment 95,832 - - - 95,832
Total Capital Assets Being
Depreciated or Amortized 229,230,593 6,437,770 (15,759) 21,290,233 256,942,837
Less Accumulated Depreciation for:
Land Improvements and Golf Course (6,129,414) (749,993) - (10,169,081) (17,048,488)
Buildings and Structures (23,296,403) (1,767,491) - (7,471,347) (32,535,241)
Furniture and Office Equipment (140,448) - - - (140,448)
Vehicles and Equipment (9,535,168) (783,564) 15,759 (29,416) (10,332,389)
Utility infrastructure (72,620,180) (5,436,277) - - (78,056,457)
Parks - (56,078) - (84,117) (140,195)
Less Accumulated Amortization for:
Right-to-Use Vehicles and Equipment - (71,521) - - (71,521)
Total Accumulated Depreciation
and Amortization (111,721,613) (8,864,924) 15,759 (17,753,961) (138,324,739)
Total Capital Assets Being
Depreciated or Amortized, Net 117,508,980 (2,427,154) - 3,536,272 118,618,098
Business-Type Activities Capital Assets, Net 130,990,022$ 14,364,406$ (6,267,788)$ 3,536,272$ 142,622,912$ Depreciation and amortization expense was charged to functions/programs of the primary
government as follows:
Governmental Activities:
General Government 468,796$
Public Safety 1,250,377
Public Works 10,737,664
Parks 1,460,670
Total Depreciation/Amortization Expense -
Govenrmental Activities 13,917,507$
Business-Type Activities:
Utilities 5,935,306$
Liquor 125,293
Aquatic Center 243,055
Golf Course 955,346
Arena 590,898
Art Center 5,891
Edinborough Park 303,608
Centennial Lakes 170,755
Sports Dome 534,772
Total Depreciation/Amortization Expense -
Business-Type Activities 8,864,924$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(51)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Construction Commitments
At December 31, 2022, the City had construction project contracts in progress. The
commitments related to the remaining contract balances are summarized as follows:
Contract Remaining
Project # Project Description Amount Commitment
ENG22-2 Blake Road Reconstruction 11,017,708$ 7,570,915$
ENG22-3 Morningside D & E Roadway Reconstruction 8,055,744 1,815,872
ENG22-5 Morningside Flood Infrastructure Project 174,580 174,580
ENG22-11 Centennial Lakes Bridge Barriers 118,386 37,213
ENG22-13 McCauley Fence 145,612 4,974
ENG22-15 Lift Station #6 7,558,400 5,976,040
ENG22-16 Well #5 23,298 20,993
ENG22-19 McCauley Trail 277,700 263,084
Total 15,863,671$
Commitments above that are significant to the applicable fund include the Blake Road
Reconstruction project in the construction fund and utilities fund, the Morningside D&E
Roadway Reconstruction in the utilities fund, the Lift Station #6 project in the utilities fund,
and the McCauley Trail project in the Pedestrian and Cyclist Safety fund.
NOTE 4 LEASES
The City, acting as lessor, leases hockey center space and tower and park spaces for
cellular towers under various long-term, non-cancelable lease agreements. The leases
expire at various dates through 2049 and contain discount rates ranging from 2.30% to
3.40%. During the year ended December 31, 2022, the City recognized $361,022 and
$102,397 in lease revenue and interest revenue, respectively, pursuant to these contracts.
Total future minimum lease payments to be received under lease agreements are as
follows:
December 31,Principal Interest
2023 358,119$ 70,922$
2024 345,268 62,022
2025 281,792 54,268
2026 178,649 48,126
2027 182,873 43,134
2028-2032 379,601 172,791
2033-2037 294,191 119,868
2038-2042 265,322 70,903
2043-2047 243,039 29,770
2048-2049 43,198 1,242
Total 2,572,052$ 673,046$
Governmental Activities
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(52)
NOTE 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2022: general
obligation bonds, permanent improvement revolving bonds, tax increment financing bonds,
public project revenue bonds, and G.O. revenue bonds. The first type is payable from
general property taxes. The second type is payable primarily from special assessments with
any deficiency to be provided for by general property taxes. The third type is payable from
future tax increment payments received. The fourth type is payable solely from annual
appropriation lease payments received from the City of Edina pursuant to a lease between
the Edina Housing and Redevelopment Authority and the City. The fifth type is payable
primarily from enterprise revenue with any deficiency to be provided for by general property
taxes. The reporting entity’s long-term debt is segregated between the amounts to be repaid
from governmental activities and amounts to be repaid from business-type activities.
Governmental Activities
As of December 31, 2022, the governmental long-term bonded debt of the financial
reporting entity consisted of the following:
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2022
General Obligation Bonds:
General Obligation, 2016A - Refunding 2.00-3.00% 7/6/2016 2/1/2028 3,635,000$ 2,120,000$
General Obligation, 2017C - Refunding 2.05-400% 12/14/2017 2/1/2029 8,955,000 6,145,000
General Obligation Equipment Certificate, 2019A 3.00-5.00% 6/13/2019 2/1/2036 2,805,000 2,285,000
General Obligation, 2021B - Refunding 5.00% 12/16/2021 2/1/2030 2,515,000 2,515,000
General Obligation - Capital Improvement
Plan, 2022B 2.00% 8/25/2022 2/1/2025 17,000,000 17,000,000
Total General Obligation Bonds 40,620,000 30,065,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 370,000
Permanent Improvement Revolving, 2015A 2.00-4.00% 7/9/2015 2/1/2032 6,545,000 4,690,000
Permanent Improvement Revolving, 2015A -
Parking 2.00-4.00% 7/9/2015 2/1/2036 2,495,000 1,900,000
Permanent Improvement Revolving, 2016A 2.00-3.00% 7/6/2016 2/1/2033 3,940,000 3,040,000
Permanent Improvement Revolving, 2017A 3.00-4.00% 6/29/2017 2/1/2034 1,995,000 1,680,000
Permanent Improvement Revolving, 2018A 3.00-4.00% 6/27/2018 2/1/2035 2,210,000 1,975,000
Permanent Improvement Revolving, 2019A 3.00-4.00% 6/13/2019 2/1/2036 2,195,000 2,090,000
Permanent Improvement Revolving, 2020A 2.00-4.00% 6/25/2020 2/1/2037 390,000 390,000
Permanent Improvement Revolving, 2020B 1.09% 12/30/2020 2/1/2029 1,601,000 1,310,000
Permanent Improvement Revolving, 2021A 2.00-4.00% 6/24/2021 2/1/2043 5,480,000 5,480,000
Permanent Improvement Revolving, 2021B 5.00% 12/16/2021 2/1/2030 1,280,000 1,280,000
Permanent Improvement Revolving, 2022A 5.00% 7/14/2022 2/1/2039 2,145,000 2,145,000
Total PIR Bonds 35,586,000 26,350,000
Tax Increment Financing Bonds
Tax Increment Financing, 2021A 2.00-4.00% 6/24/2021 2/1/2043 7,545,000 7,545,000
Minnesota State Aid Street Bonds
MSA, 2022A 5.00% 7/14/2022 2/1/2039 10,465,000 10,465,000
Public Project Revenue Bonds:
Public Project Revenue, 2014A 2.00-3.625% 7/15/2014 2/1/2035 16,155,000 11,525,000
Public Project Revenue, 2015A - Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 1,405,000
Total Public Project Revenue Bonds 19,645,000 12,930,000
Total Bonded Indebtedness -
Governmental Activities 113,861,000$ 87,355,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(53)
NOTE 5 LONG-TERM DEBT (CONTINUED)
Business-Type Activities
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2022
Revenue Bonds:
Recreational Facility Bonds, Series 2015B 2.00-325% 7/9/2015 2/1/2031 2,140,000$ 1,390,000$
Recreational Facility Bonds, Series 2017B 3.00-4.00% 6/29/2017 2/1/2033 7,425,000 5,635,000
Recreational Facility Bonds, Series 2017D -
Refunding 2.00% 12/20/2017 2/1/2030 1,640,000 1,073,000
Recreational Facility Bonds, Series 2021C -
Refunding 2.00-3.00% 12/16/2021 2/1/2033 2,210,000 2,210,000
Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 1,235,000
Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 1,705,000
Utility Revenue Bonds, Series 2016A 2.00-3.00% 7/6/2016 2/1/2027 8,775,000 4,695,000
Utility Revenue Bonds, Series 2017A 3.00-4.00% 6/29/2017 2/1/2028 6,595,000 4,260,000
Utility Revenue Bonds, Series 2018A 3.00-4.00% 6/27/2018 2/1/2029 3,305,000 2,430,000
Utility Revenue Bonds, Series 2019A 3.00-4.00% 6/13/2019 2/1/2036 5,815,000 4,865,000
Utility Revenue Bonds, Series 2020A 2.00-4.00% 6/25/2020 2/1/2031 4,830,000 4,425,000
Utility Revenue Bonds, Series 2020B - Refunding 1.09% 12/30/2020 2/1/2023 1,414,000 357,000
Utility Revenue Bonds, Series 2022A 5.00% 7/14/2022 2/1/2039 13,695,000 13,695,000
Total Bonded Indebtedness - Business-
Type Activities 74,469,000$ 47,975,000$
Annual debt service requirements to maturity for the City’s governmental activities debt are
as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2023 1,480,000$ 775,108$ 1,817,000$ 872,103$ 1,070,000$ 400,194$
2024 1,560,000 736,475 1,794,000 803,711 1,100,000 367,644
2025 18,850,000 498,200 1,940,000 738,886 1,135,000 335,006
2026 1,930,000 252,575 2,003,000 672,526 1,170,000 302,244
2027 2,000,000 181,833 2,085,000 603,374 825,000 273,244
2028-2032 4,245,000 179,470 10,311,000 1,927,006 4,530,000 947,528
2033-2037 - - 5,565,000 526,547 3,100,000 170,475
2038-2042 - - 835,000 23,875 - -
2043-2044 - - - - - -
Total 30,065,000$ 2,623,661$ 26,350,000$ 6,168,028$ 12,930,000$ 2,796,335$
General Public Improvement Public Project
Revolving Bonds Revenue BondsObligation Bonds
Year Ending
December 31,Principal Interest Pricipal Interest Principal Interest
2023 250,000$ 217,250$ -$ 547,959$ 2,868$ 240$
2024 260,000 207,050 485,000 511,125 2,938 170
2025 270,000 196,450 510,000 486,250 3,006 102
2026 280,000 185,450 535,000 460,125 2,564 26
2027 290,000 174,050 560,000 432,750 - -
2028-2032 1,635,000 684,925 3,260,000 1,702,000 - -
2033-2037 1,930,000 392,600 4,155,000 779,875 - -
2038-2042 2,170,000 156,300 960,000 24,000 - -
2043-2044 460,000 4,600 - - - -
Total 7,545,000$ 2,218,675$ 10,465,000$ 4,944,084$ 11,376$ 538$
MSA Bonds
Tax Increment
Financing Bonds Leases Payable
Principal Interest
December 31,-$ 15,000$
2023 - 15,000
2024 - 15,000
2025 - 15,000
2026 - 15,000
2027 - 15,000
2028-2032 750,000 15,000
750,000$ 105,000$
Direct Borrowing - Loans Payable
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(54)
NOTE 5 LONG-TERM DEBT (CONTINUED)
Annual debt service requirements to maturity for the City’s business-type activities debt are
as follows:
December 31,
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
2043-2047
2048-2049
Total
Principal Interest Principal Interest
5,231,000$ 1,805,552$ 34,356$ 119$
5,707,000 1,575,706 - -
5,284,000 1,371,581 - -
4,877,000 1,182,725 - -
5,045,000 996,944 - -
14,736,000 2,861,182 - -
5,920,000 967,150 - -
1,175,000 29,375 - -
- - - -
47,975,000$ 10,790,215$ 34,356$ 119$
Revenue Bonds Leases Payable
Business-Type Activities
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2022 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
Bonds Payable:
General Obligation 17,735,000$ 17,000,000$ (4,670,000)$ 30,065,000$ 1,480,000$
Permanent Improvement Revolving 27,740,000 2,145,000 (3,535,000) 26,350,000 1,817,000
Public Project Revenue 13,970,000 - (1,040,000) 12,930,000 1,070,000
Tax Increment Financing 7,545,000 - - 7,545,000 250,000
Minnesota State Aid Streets - 10,465,000 - 10,465,000 -
Less Deferred Amounts:
Premiums on Bonds 3,962,955 1,691,560 (662,270) 4,992,245 -
Total Bonds Payable 70,952,955 31,301,560 (9,907,270) 92,347,245 4,617,000
Loans Payable 750,000 - - 750,000 -
Leases Payable 14,205 - (2,829) 11,376 2,868
Compensated Absences 4,793,091 3,619,138 (3,479,804) 4,932,425 1,972,970
Total Governmental Activities
Long-Term Liabilities 76,510,251$ 34,920,698$ (13,389,903)$ 98,041,046$ 6,592,838$
Business-Type Activities:
Bonds Payable:
General Obligation Revenue Bonds 43,318,000$ 13,695,000$ (9,038,000)$ 47,975,000$ 5,231,000$
Less Deferred Amounts:
Premiums on Bonds 2,655,867 1,824,332 (589,275) 3,890,924 -
Total Bonds Payable 45,973,867 15,519,332 (9,627,275) 51,865,924 5,231,000
Leases Payable 95,832 - (61,476) 34,356 34,356
Compensated Absences 882,681 568,209 (623,636) 827,254 335,138
Total Business-Type Activities
Long-Term Liabilities 46,952,380$ 16,087,541$ (10,312,387)$ 52,727,534$ 5,600,494$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(55)
NOTE 5 LONG-TERM DEBT (CONTINUED)
Change in Long-Term Liabilities (Continued)
For governmental activities, compensated absences are generally liquidated by the general
fund.
In 2021, the City issued $2,515,000 of General Obligation Refunding Bonds and $1,280,000
of General Obligation PIR Refunding Bonds, Series 2021B, to advance refund, in 2022, the
outstanding maturities of the City’s 2013A bonds. The refunding resulted in a cash flow
savings of $360,335 and a net present value savings of $357,246. Also in 2021, the City
issued $2,210,000 of General Obligation Refunding Bonds, Series 2021C, to advance
refund, in 2022, the outstanding maturities of the City’s 2021C bonds. The refunding
resulted in a cash flow savings of $181,345 and a net present value savings of $167,434.
On July 14, 2022, the City issued $2,145,000 of Permanent Improvement Revolving Bonds,
$10,465,000 of General Obligation Bonds, and $13,695,000 of General Obligation Utility
Revenue Bonds, Series 2021A. The proceeds of these bonds are being used to finance
road reconstruction projects, the related storm sewer portions, and to finance watermain
system improvements. The bonds include coupon rates of 5.00%, with final maturity dates
ranging from February 1, 2022 to February 1, 2039.
On August 25, 2022, the City issued $17,000,000 of General Obligation Capital
Improvement Bonds, Series 2022B. The proceeds of these bonds are being used to finance
the site acquisition and design for the City’s Fire Station No. 2 Project. The bonds include a
coupon rate of 2.0%, with a final maturity date of February 1, 2025.
The City also leases various laundry and golf equipment for various terms under long-term,
noncancelable lease agreements. The leases expire at various dates through 2026 and
contain discount rates from 1.75% to 2.38%.
Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Total Debt Terms of Principal and Interest Revenue
Bond Issue Use of Proceeds TypeService Pledge and Interest Paid Received
2015B Recreational Facility Bonds Golf Course Improvements Golf 100 % 2016-2031 1,591,466$ 174,294$ 6,063,172$
2017B Recreational Facility Bonds Golf Course Improvements Golf 100 2018-2033 6,203,750 563,300 6,063,172
2017B Recreational Facility Bonds Pool Improvements Pool 100 2018-2027 502,100 99,800 1,144,569
2017D Recreational Facility Bonds Arena Improvements Arena 100 2018-2030 1,160,850 154,430 2,532,961
2021C Recreational Facility Bonds Arena Improvements Arena 100 2023-2033 1,899,400 28,000 2,532,961
2021C Recreational Facility Bonds Golf Dome Improvements Golf 100 2023-2033 609,850 10,313 6,063,172 2014A Utility Revenue Bonds Utility Infrastructure Utility 100 2014-2024 1,272,425 638,000 32,297,449
2015A Utility Revenue Bonds Utility Infrastructure Utility 100 2016-2025 1,794,150 597,800 32,297,449
2016A Utility Revenue Bonds Utility Infrastructure Utility 100 2017-2027 4,982,844 997,288 32,297,449
2017A Utility Revenue Bonds Utility Infrastructure Utility 100 2018-2028 4,713,750 787,500 32,297,449
2018A Utility Revenue Bonds Utility Infrastructure Utility 100 2019-2029 2,731,575 387,750 32,297,449
2019A Utility Revenue Bonds Utility Infrastructure Utility 100 2020-2036 5,894,000 740,375 32,297,449
2020A Utility Revenue Bonds Utility Infrastructure Utility 100 2021-2031 5,018,650 557,400 32,297,449
2020B Utility Revenue Bonds Utility Infrastructure Utility 100 2021-2023 358,946 716,679 32,297,449 2022A Utility Revenue Bonds Utility Infrastructure Utility 100 2023-2038 20,031,460 - 32,297,449
Revenue Pledged Current Year
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(56)
NOTE 6 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the state of Minnesota for bonded
indebtedness payable principally from property taxes. The City of Edina’s legal debt margin
for 2022 is computed as follows:
December 31,
2022
Market Value (After Fiscal Disparities) 13,796,381,100$
Debt Limit (3% of Market Value) 413,891,433$
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt 135,330,000$
Less:
Public Improvement Revolving Bonds (26,350,000)
Tax Increment Financing Bonds (7,545,000)
Revenue Bonds (47,975,000)
Total Debt Applicable to Debt Limit 53,460,000$
Legal Debt Margin 360,431,433$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(57)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE
The City participates in various pension plans, with total pension expense for the year ended
December 31, 2022 of $6,850,028, including expense and offsetting revenue for its
proportionate share of the state of Minnesota’s pension expense for the contribution of $9
million to the Police and Fire Fund. The components of pension expense are noted in the
following plan summaries:
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit
pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA). PERA’s defined benefit pension plans are established and
administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s
defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal
Revenue Code (IRC).
1. General Employees Retirement Plan
All full-time and certain part-time employees of the City are covered by the General
Employees Plan. General Employees Plan members belong to the Coordinated Plan.
Coordinated Plan members are covered by Social Security.
2. Public Employees Police and Fire Plan
The Police and Fire Plan, originally established for police officers and firefighters not
covered by a local relief association, now covers all police officers and firefighters
hired since 1980. Effective July 1, 1999, the Police and Fire Plan also covers police
officers and firefighters belonging to local relief associations that elected to merge
with and transfer assets and administration to PERA.
B. 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.
1. General Employees Plan Benefits
General Employees Plan benefits are based on a member’s highest average salary
for any five successive years of allowable service, age, and years of credit at
termination of service. Two methods are used to compute benefits for PERA’s
Coordinated Plan members. Members hired prior to July 1, 1989, receive the higher
of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after
June 30, 1989. Under Method 1, the accrual rate for Coordinated members is 1.2%
for each of the first 10 years of service and 1.7% for each additional year. Under
Method 2, the accrual rate for Coordinated members is 1.7% for all years of service.
For members hired prior to July 1, 1989 a full annuity is available when age plus
years of service equal 90 and normal retirement age is 65. For members hired on or
after July 1, 1989, normal retirement age is the age for unreduced Social Security
benefits capped at 66.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(58)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
B. Benefits Provided (Continued)
1. General Employees Plan Benefits (Continued)
Benefit increases are provided to benefit recipients each January. The
postretirement increase is equal to 50% of the cost-of-living adjustment (COLA)
announced by the SSA, with a minimum increase of at least 1% and a maximum of
1.5%. Recipients that have been receiving the annuity or benefit for at least a full
year as of the June 30 before the effective date of the increase will receive the full
increase. Recipients receiving the annuity or benefit for at least one month but less
than a full year as of the June 30 before the effective date of the increase will receive
a reduced prorated increase. For members retiring on January 1, 2024, or later, the
increase will be delayed until normal retirement age (age 65 if hired prior to July 1,
1989, or age 66 for individuals hired on or after July 1, 1989). Members retiring under
Rule of 90 are exempt from the delay to normal retirement.
2. Police and Fire Plan Benefits
Benefits for Police and Fire Plan members first hired after June 30, 2010, but before
July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten
years of credited service. Benefits for Police and Fire Plan members first hired after
June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after
twenty years of credited service. The annuity accrual rate is 3% of average salary for
each year of service. For Police and Fire Plan members who were first hired prior to
July 1, 1989, a full annuity is available when age plus years of service equal at least
90.
Benefit increases are provided to benefit recipients each January. The
postretirement increase is fixed at 1%. Recipients that have been receiving the
annuity or benefit for at least 36 months as of the June 30 before the effective date of
the increase will receive the full increase. Recipients receiving the annuity or benefit
for at least 25 months but less than 36 months as of the June 30 before the effective
date of the increase will receive a reduced prorated increase.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(59)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee
contributions. Contribution rates can only be modified by the state legislature.
1. General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.50% of their annual
covered salary in fiscal year 2022 and the City was required to contribute 7.50% for
Coordinated Plan members. The City’s contributions to the General Employees Fund
for the year ended December 31, 2022, were $1,696,759. The City’s contributions
were equal to the required contributions as set by state statute.
2. Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.80% of their annual
covered salary in fiscal year 2022 and the City was required to contribute 17.70% for
Police and Fire Plan members. The City’s contributions to the Police and Fire Fund
for the year ended December 31, 2022, were $1,953,054. The City’s contributions
were equal to the required contributions as set by state statute.
D. Pension Costs
1. General Employees Fund Pension Costs
At December 31, 2022, the City reported a liability of $22,973,466 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 $673,551.
The net pension liability was measured as of June 30, 2022, and the total pension
liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportionate share of the net pension liability
was based on the City’s contributions received by PERA during the measurement
period for employer payroll paid dates from July 1, 2021 through June 30, 2022,
relative to the total employer contributions received from all of PERA’s participating
employers. The City’s proportionate share was 0.2927% at the end of the
measurement period and 0.2911% for the beginning of the period.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(60)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
D. Pension Costs (Continued)
1. General Employees Fund Pension Costs (Continued)
City's Proportionate Share of the Net Pension
Liability 22,973,466$
State of Minnesota's Proportionate Share of the
Net Pension Liability Associated with the City 673,551
Total 23,647,017$
For the year ended December 31, 2022, the City recognized pension expense of
$3,433,025 for its proportionate share of the General Employees Plan’s pension
expense.
At December 31, 2022, the City reported its proportionate share of the General
Employees Plan’s deferred outflows of resources and deferred inflows of resources,
related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic
Experience 191,893$ 245,411$
Changes in Actuarial Assumptions 5,199,306 93,437
Differences Between Projected and Actual Investment
Earnings 398,486 -
Changes in Proportion 619,625 -
Contributions Paid to the PERA Subsequent to the
Measurement Date 850,514 -
Total 7,259,824$ 338,848$
$850,514 reported as deferred outflows of resources related to pensions resulting
from city contributions subsequent to the measurement date that will be recognized
as a reduction of the net pension liability in the year ended December 31, 2023.
Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Pension
Expense
Year Ending December 31,Amount
2023 2,361,927$
2024 2,340,972
2025 (710,067)
2026 2,077,630
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(61)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
D. Pension Costs (Continued)
2. Police and Fire Fund Pension Costs
At December 31, 2022, the City reported a liability of $38,111,357 for its
proportionate share of the Police and Fire Fund’s net pension liability. The net
pension liability was measured as of June 30, 2022, 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, 2021 through June 30, 2022, relative to the
total employer contributions received from all of PERA’s participating employers. The
City’s proportionate share was 0.8758% at the end of the measurement period and
0.8688% 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, 2022. The contribution consisted of $9 million in direct
state aid that meets the definition of a special funding situation and $9 million in
supplemental state aid that does not meet the definition of a special funding
situation. The $9 million direct state was paid on October 1, 2021. Thereafter, by
October 1 of each year, the state will pay $9 million to the Police and Fire Fund until
full funding is reached or July 1, 2048, whichever is earlier. The $9 million in
supplemental state aid will continue until the fund is 90% funded, or until the State
Patrol Plan (administered by the Minnesota State Retirement System) is 90%
funded, whichever occurs later. Strong asset returns for the fiscal year ended 2021
will accelerate the phasing out of these state contributions, although we do not
anticipate them to be phased out during the fiscal year ending 2022.
The state of Minnesota is included as a non-employer contributing entity in the Police
and Fire Retirement Plan Schedule of Employer Allocations and Schedule of
Pension Amounts by Employer, Current Reporting Period Only (pension allocation
schedules) for the $9 million in direct state aid. Police and Fire Plan employers need
to recognize their proportionate share of the state of Minnesota’s pension expense
(and grant revenue) under GASB 68 special funding situation accounting and
financial reporting requirements. For the year ended June 30, 2022, the City
recognized pension expense of $3,091,340 for its proportionate share of the Police
and Fire Plan’s pension expense. The City recognized $78,822 as grant revenue for
its proportionate share of the state of Minnesota’s pension expense for the
contribution of $9 million to the Police and Fire Fund.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(62)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
D. Pension Costs (Continued)
2. Police and Fire Plan Pension Costs (Continued)
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. The City recognized $322,929 for the year ended December
31, 2022 as revenue and an offsetting reduction of net pension liability for its
proportionate share of the state of Minnesota’s on-behalf contributions to the Police
and Fire Fund.
City's Proportionate Share of the Net Pension
Liability 38,111,357$
State of Minnesota's Proportionate Share of the
Net Pension Liability Associated with the City 1,664,806
Total 39,776,163$
At December 31, 2022, 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 Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic
Experience 2,327,780$ -$
Changes in Actuarial Assumptions 22,434,407 229,106
Differences Between Projected and Actual Investment
Earnings 510,819 -
Changes in Proportion 540,742 44,305
Contributions Paid to the PERA Subsequent to the
Measurement Date 1,005,638 -
Total 26,819,386$ 273,411$
$1,005,638 reported as deferred outflows of resources related to pensions resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2023. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension Expense
Year Ending December 31,Amount
2023 5,019,379$
2024 5,045,966
2025 4,420,551
2026 7,867,300
2027 3,187,141
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(63)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
E. 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
Target Expected Real
Asset Class Allocation Rate of Return
Domestic Equity 33.5 % 5.10 %
International Equity 16.5 % 5.30
Fixed Income 25.0 % 0.75
Private Markets 25.0 % 5.90
Total 100.0 % -
F. Actuarial Assumptions
The total pension liability in the June 30, 2022, actuarial valuation was determined using
an individual entry-age normal actuarial cost method. The long-term rate of return on
pension plan investments used in the determination of the total liability is 6.5%. This
assumption is based on a review of inflation and investments return assumptions from a
number of national investment consulting firms. The review provided a range of return
investment return rates deemed to be reasonable by the actuary. An investment return
of 6.5% was deemed to be within that range of reasonableness for financial reporting
purposes.
Inflation is assumed to be 2.25% for the General Employees Plan and 2.25% for the
Police and Fire Plan. Benefit increases after retirement are assumed to be 1.25% for the
General Employees Plan. The Police and Fire Plan benefit increase is fixed at 1% per
year and that increase was used in the valuation.
Salary growth assumptions in the General Employees Plan range in annual increments
from 10.25% after one year of service to 3.0% after 27 years of service. In the Police
and Fire Plan, salary growth assumptions range from 11.75% after one year of service to
3.0% after 24 years of service.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(64)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
F. Actuarial Assumptions (Continued)
Actuarial assumptions for the General Employees Plan are reviewed every four years.
The most recent four-year experience study for the General Employees Plan was
completed in 2019. The assumption changes were adopted by the Board and became
effective with the July 1, 2020 actuarial valuation. The most recent four-year experience
studies for the Police and Fire Plan were completed in 2020 and were adopted by the
Board and became effective with the July 1, 2021 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2022:
General Employees Fund
Changes in Actuarial Assumptions:
x The mortality improvement scale was changed from Scale MP-2020 to Scale
MP-2021.
Police and Fire Fund
Changes in Actuarial Assumptions:
x The mortality improvement scale was changed from Scale MP-2020 to Scale
MP-2021.
x The single discount rate changed from 6.50% to 5.40%.
G. Discount Rate
The discount rate used to measure the total pension liability in 2022 was 6.5%. 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
was 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.
In the Police and Fire Fund, the fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members through June 30,
2060. Beginning in fiscal year ended June 30, 2061 for the Police and Fire Fund,
projected benefit payments exceed the funds' projected fiduciary net position. Benefit
payments projected after were discounted at the municipal bond rate of 3.69 percent
(based on the weekly rate closest to but not later than the measurement date of the
Fidelity "20-Year Municipal GO AA Index"). The resulting equivalent single discount rate
of 5.40 percent was determined to give approximately the same present value of
projected benefits when applied to all years of projected benefits as the present value of
projected benefits using 6.5 percent applied to all years of projected benefits through the
point of asset depletion and 3.69 percent thereafter.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(65)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
H. Pension Liability Sensitivity
The following presents the City’s proportionate share of the net pension liability for all
plans it participates in, calculated using the discount rate disclosed in the preceding
paragraph, as well as what the City’s proportionate share of the net pension liability
would be if it were calculated using a discount rate 1.0 percentage point lower or
1.0 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(5.5%) (6.5%) (7.5%)
The City’s Proportionate Share of
the GERF Net Pension Liability 36,287,529$ 22,973,466$ 12,053,576$
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(4.4%) (5.4%) (6.4%)
The City’s Proportionate Share of
the PEPFF Net Pension Liability 57,676,650$ 38,111,357$ 22,293,988$
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a
separately-issued PERA financial report that includes financial statements and required
supplementary information. That report may be obtained on the PERA website at
www.mnpera.org.
J. Public Employees Defined Contribution Plan (DCP)
Board members of the City are covered by the DCP, a multiemployer deferred
compensation plan administered by PERA. The DCP is a tax qualified plan under
Section 401(a) of the IRC and all contributions by or on behalf of employees are tax
deferred until time of withdrawal. Plan benefits depend solely on amounts contributed to
the plan plus investment earnings, less administrative expenses. Minnesota Statutes,
Chapter 353D.03, specifies plan provisions, including the employee and employer
contribution rates for those qualified personnel who elect to participate. An eligible
elected official who decides to participate contributes 5.0% of salary which is matched by
the elected official’s employer. For ambulance service personnel, employer contributions
are determined by the employer, and for salaried employees must be a fixed percentage
of salary.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(66)
NOTE 7 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
J. Public Employees Defined Contribution Plan (DCP) (Continued)
Employer contributions for volunteer personnel may be a unit value for each call or period
of alert duty. Employees who are paid for their services may elect to make member
contributions in an amount not to exceed the employer share. Employer and employee
contributions are combined and used to purchase shares in one or more of the seven
accounts of the Minnesota Supplemental Investment Fund. For administering the plan,
PERA receives 2.0% of employer contributions and twenty-five hundredths of 1.0%
(0.0025) of the assets in each member’s account annually.
Total contributions made by the City during fiscal year 2022 were:
Required
Employee Employer Employee Employer Rate
2,734$ 2,734$ 5 % 5 % 5 %
Contribution Amount Percentage of Covered Payroll
NOTE 8 MULTIEMPLOYER DEFINED BENEFIT PENSION PLAN
City employees belonging to International Union of Operating Engineers (IUOE) are
participants in a multiemployer defined benefit pension plan Central Pension Fund of the
International Union of Operating Engineers and Participating Employers (CRF) administered
by the board of trustees of the Central Pension Fund. The plan is a cost-sharing pension
plan that is not a state or local governmental pension plan, is used to provide defined benefit
pensions both to employers that are not state or local governmental employers, and has no
predominant state or local government employer. The plan issues a publicly available
financial report located on their website at www.cpfiuoe.org.
The City has 57 employees who are covered by the pension plan. The plan provides
benefits such as monthly retirement income, special and early retirement benefits,
postretirement surviving spouse benefits, and disability benefits. The CPF is a supplemental
Pension Fund authorized by Minnesota Statutes, 356.24, subdivision 1(9). The CPF Plan of
Benefits and the Agreement and Declaration of Trust will serve as the governing documents.
The City’s contributions to the plan are pursuant to a collective bargaining agreement with the
IUOE which will expire December 31, 2023. The required contribution rate is $0.75 per hour,
which is applied to all compensated hours, and capped at $5,000 per year. Total employer
contributions for the year ended December 31, 2022 were $144,080. With regard to
withdrawal from the pension plan, the parties agree that the amount that would otherwise be
paid in salary or wages will be contributed instead to the CPF as pretax employer
contributions.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(67)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides postemployment insurance benefits to certain eligible employees
through its OPEB Plan, a single-employer defined benefit plan administered by the City.
All postemployment benefits are based on contractual agreements with employee groups.
Eligibility for these benefits is based on years of service and/or minimum age
requirements. These contractual agreements do not include any specific contribution or
funding requirements. The plan does not issue a publicly available financial report. No plan
assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement No. 75.
B. Benefits Provided
All retirees of the City upon retirement have the option under state law to continue their
medical insurance coverage through the City from the time of retirement until the
employee reaches the age of eligibility for Medicare. For members of all employee
groups, the retiree must pay the full premium to continue coverage for medical and
dental insurance.
The City is legally required to include any retirees for whom it provides health insurance
coverage in the same insurance pool as its active employees, whether the premiums are
paid by the City or the retiree. Consequently, participating retirees are considered to
receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the
assumption that the retiree is receiving a more favorable premium rate than they would
otherwise be able to obtain if purchasing insurance on their own, due to being included in
the same pool with the City’s younger and statistically healthier active employees.
For police officers and firefighters disabled in the line-of-duty, Minnesota Statutes require
the City to continue payment of the employer’s contribution toward health coverage for
the police officer or firefighter and their spouse, if the spouse was covered at the time of
disability, until age 65.
C. Contributions
The required contribution is based on projected pay-as-you-go financing requirements,
with additional amounts to prefund benefits as determined periodically by the City. The
City’s current year required pay-as-you-go contributions to finance the benefits
described in the previous section totaled $153,000. Total OPEB liability will be paid by
the general fund and enterprise funds.
D. Membership
Membership in the plan consisted of the following as of the latest actuarial valuation:
Retirees and Beneficiaries Receiving Benefits 23
Active Plan Members 333
Total Members 356
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(68)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
E. Total OPEB Liability of the City
The City’s total OPEB liability was determined by an actuarial valuation with a valuation
date of December 31, 2021.
F. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of December 31,
2021, using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified.
Discount Rate 2.06%
20-Year Municipal Bond Yield 2.06%
Salary Increases 2.50%
Medical Trend Rate 6.20% grading to 5.20% by 2028, then
transitioning to 3.90% from 2027-2074
The actuarial assumptions used in the latest valuation were based on those used to
value pension liabilities for Minnesota city employees. The state pension plans base
their assumptions on periodic experience studies. Economic assumptions are based on
input from a variety of published sources of historical and projected future financial data.
Each assumption was reviewed for reasonableness with the source information as well
as for consistency with the other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the
20-year municipal bond yield rate of 2.06%, which was set by considering published rate
information for 20-year high quality, tax exempt, general obligation municipal bonds as of
the measurement date. The City discount rate used in the prior measurement date was
2.74%.
Mortality rates were based on the RP-2014 mortality tables adjusted for white collar and
mortality improvements using projection scale MP-2018, from a base year of 2014 for
GERF members and MP-2018, from a base year of 2006 for PEPFF members.
Future retirees electing coverage is assumed to 55%. Married future retirees electing
spouse coverage is assumed to range from 40% to 60% based on classification of
employee.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(69)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning Balance 2,518,251$
Changes for the Year:
Service Cost 280,452
Interest 58,062
Difference Between Expected
and Actual Experience 1,503,227
Changes of Assumptions (790,776)
Benefit Payments (119,930)
Total Net Changes 931,035
Ending Balance 3,449,286$
Assumption changes since the prior measurement date include the following:
x The discount rate was changed from 2.12% to 2.06%.
x The payroll growth rate changed from 3.25% to 2.50%
H. Total OPEB Liability Sensitivity to Discount and Health Care Cost Trend Rate
Changes
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using a discount rate that is 1 percentage
point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
OPEB Discount Rate 1.06 % 2.06 % 3.06 %
Total OPEB Liability 3,232,290$ 3,449,286$ 3,665,244$
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using healthcare cost trend rates that are
1 percentage point lower or 1 percentage point higher than the current healthcare cost
trend rates:
1% Decrease in 1% Increase in
Medical Trend Medical Trend Medical Trend
Rate Rate Rate
OPEB Medical Trend Rate 5.20%
Decreasing to
4.20% Over 3
Years
6.20%
Decreasing to
5.20% Over 3
Years
7.20%
Decreasing to
6.20% Over 3
Years
Total OPEB Liability 3,941,150$ 3,449,286$ 3,037,786$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(70)
NOTE 9 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
I. OPEB Expense and Related Deferred Outflows of Resources and Deferred Inflows
of Resources
For the current year ended, the City recognized OPEB expense of $240,583. As of year-
end, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Difference Between Expected 1,360,810$ 1,332,218$
and Actual Experience
Changes of Assumptions 273,576 815,405
City Contributions Subsequent to the Measurement
Date 158,500 -
Total 1,792,886$ 2,147,623$
A total of $158,500 reported as deferred outflows of resources related to OPEB resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the total OPEB liability in the year ending December 31, 2023. Other
amounts reported as deferred outflows and inflows of resources related to the plan will
be recognized in pension expense as follows:
OPEB
Expense
Year Ended December 31,Amount
2023 (97,931)$
2024 (97,931)
2025 (97,931)
2026 (97,931)
2027 (102,402)
Thereafter (19,111)
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(71)
NOTE 10 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Internal
Debt Aquatic Nonmajor Service
General Service Construction Liquor Center Golf Course Arena Enterprise Funds Total
Transfer Out:
General Fund -$ -$ 750,482$ -$ -$ -$ -$ -$ -$ 750,482$
Construction Fund - 2,765,516 - - - - - - - 2,765,516
Utilities Fund 207,900 - 100,000 4,673 16,621 59,401 47,454 78,138 12,355 526,542
Liquor Fund - - - - - - 300,000 700,000 1,000,000
Total 207,900$ 2,765,516$ 850,482$ 4,673$ 16,621$ 59,401$ 347,454$ 778,138$ 12,355$ 5,042,540$
Transfers In
Interfund transfers allow the City to allocate financial resources to the funds that receive
benefit from services provided by another fund. Some of the City’s interfund transfers fall
under that category. Nonroutine transfers include the following:
1. The Liquor fund transferred $350,000, $300,000, and $350,000 to the Art Center fund,
Braemar Arena fund, and Centennial Lakes fund, respectively.
2. The Utilities fund and General fund transferred $100,000 and $750,482 to the
construction fund to fund the capital improvement program, as planned in the 2022
budget.
3. The Construction fund transferred $2,765,516 of PIR assessment revenue to the debt
service fund for related debt payments.
4. The Utilities fund transferred a total of $526,542 to the general fund, other enterprise
funds, and internal service funds to offset the cost of internal utilities.
NOTE 11 TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are the administering authorities
for the following Tax Increment Districts:
District number 1211 (Pentagon Park Increment Financing District) is an economic
development district established in 2014 pursuant to Minnesota Statutes with a termination
date of 2043.
District number 1212 (Grandview 2 Increment Financing District) is an economic
development district established in 2016 pursuant to Minnesota Statutes with a termination
date of 2045.
District number 1214 (66 West Increment Financing District) is an economic development
district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1215 (50th and France 2) is an economic development district established in
2017 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1216 (44th and France 2) is a renewal and renovation development district
established in 2019 pursuant to Minnesota Statutes with a termination date of 2036.
District number 1217 (West 76th Street) is a housing district established in 2019 pursuant to
Minnesota Statutes with a termination date of 2042.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(72)
NOTE 11 TAX INCREMENT DISTRICTS (CONTINUED)
District number 1218 (72nd and France) is a housing district established in 2019 pursuant to
Minnesota Statutes with a termination date of 2043.
District number 1219 (Amundson Ave) is an affordable housing district established in 2019
pursuant to Minnesota Statutes with a termination date of 2042.
District number 1220 (West 70th) is an affordable senior housing district established in 2021
pursuant to Minnesota Statutes with a termination date of 2042.
District number 1221 (70th and France) is an urban renewal district established in 2022
pursuant to Minnesota Statutes with a termination date of 2042.
The following table reflects values as of December 31, 2022:
TIF #1211 TIF #1212 TIF #1214 TIF #1215 TIF #1216 TIF #1217 TIF #1218 TIF #1219 TIF #1220 TIF #1221 Total
Original Tax Capacity 691,608$ 39,890$ 15,315$ 57,986$ 29,735$ 42,886$ 217,006$ 16,948$ 69,270$ 302,160$ 1,482,804$
Current Tax Capacity 1,435,113 668,576 29,797 871,228 271,951 53,714 217,506 58,072 45,638 302,160 3,953,755
Fiscal Disparities 452,146 27,705 - 79,385 15,011 - 75,490 - - 104,872 754,609
Tax Capacity
Change 291,359 600,981 14,482 733,857 227,205 10,828 (74,990) 41,124 (23,632) (104,872) 1,716,342
Retained Captured
Tax Capacity 291,359$ 600,981$ 14,482$ 733,857$ 227,205$ 10,828$ (74,990)$ 41,124$ (23,632)$ (104,872)$ 1,716,342$
NOTE 12 CONTINGENCIES
A. Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
Workers’ compensation insurance was provided through the League of Minnesota Cities
Insurance Trust. There is a $50,000 deductible per occurrence and $150,000 in
aggregate. The City has an annual deposit premium that is subject to adjustment based
on the actual audited payroll.
A package policy; including property, general liability, and automobile coverage, is
provided through the League of Minnesota Cities Insurance Trust. Under this policy, the
City pays an annual premium and had a $75,000 per occurrence deductible and is
subject to an annual aggregate deductible of $150,000, with a $1,000,000 per
occurrence maximum.
Liquor liability coverage is provided through the League of Minnesota Cities Insurance
Trust. The City pays an annual premium for this coverage and has a $1,000,000 annual
maximum.
Settlement claims have not exceeded insurance coverage for each of the past three
years. There were no significant decreases in insurance coverage during 2022.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(73)
NOTE 12 CONTINGENCIES (CONTINUED)
B. Litigation
The City attorney has indicated that existing and pending lawsuits, claims and other
actions in which the City is a defendant are either covered by insurance; of an immaterial
amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs.
C. Federal and State Funds
The City receives financial assistance from federal and state governmental agencies in
the form of grants. The disbursement of funds received under these programs generally
requires compliance with the terms and conditions specified in the grant agreements and
is subject to audit by the grantor agencies. Any disallowed claims resulting from such
audits could become a liability of the applicable fund. However, in the opinion of
management, any such disallowed claims will not have a material effect on any of the
financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2022.
D. Tax Increment Districts
The City’s tax increment districts are subject to review by the state of Minnesota Office
of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could
become a liability of the applicable fund. Management is not aware of any instances of
noncompliance which would have a material effect on the financial statements.
NOTE 13 CONDUIT DEBT OBLIGATION
As of December 31, 2022, the City of Edina had four series of Housing and Health Care
Revenue Bonds, with an aggregate principal amount payable of $26,315,000. The bonds
are payable solely from revenues of the respective organizations and do not constitute an
indebtedness of the City and are not a charge against its general credit or taxing power.
Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements.
NOTE 14 JOINT VENTURE
The City is a participant with the City of Bloomington, the City of Eden Prairie, and the
Metropolitan Airport Commission in a joint venture to construct and operate a facility to be
used for the training of law enforcement officers and firefighters. The South Metro Public
Safety Training Facility Association (PSTF) is governed by a board consisting of one
representative from each Member. On dissolution of the Association, the Facility shall revert
to the City of Edina, and all remaining assets shall be divided among the members based on
the Cost Sharing Formula. In accordance with the joint venture agreement, each member of
the association will share in the cost of the construction and operation based on the Cost
Sharing Formula. The City’s equity interest in the capital assets of the PSTF was
$1,770,353. Complete financial statements for PSTF can be obtained from the City of Edina,
4801 West 50th Street, Edina, Minnesota 55424.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022
(74)
NOTE 15 RELATED PARTY TRANSACTIONS
The City pays an annual membership fee to the South Metro Public Safety Training Facility
as part of the joint venture agreement. The membership fee is paid by the Police and Fire
departments and is based on a Cost Sharing Formula. For the year ended December 31,
2022, the City paid a total of $71,660 in membership fees to the PSTF, equal to 19.15% of
membership fees collected for the year.
NOTE 16 FUND BALANCES
A. Classifications
At December 31, 2022, a summary of the City’s governmental fund balance
classifications are as follows:
General HRA Debt Service Construction Nonmajor
Fund Fund Fund Fund Funds TotalNonspendable: 80,509$ -$ -$ -$ 1,479$ 81,988$
Restricted:
Park Dedication 58,086 - - - - 58,086
Tax Increments - 26,926,382 - - - 26,926,382
Affordable Housing - 6,424,294 - - - 6,424,294
Debt Service - - 6,702,038 - - 6,702,038
Capital Projects - - - 9,556,473 - 9,556,473
Pedestrian and Cyclist Improvements - - - - 1,005,864 1,005,864
Forfeitures - - - - 851,352 851,352
Donations - - - - 127,965 127,965
Conservation and Sustainability
Initiatives - - - - 2,367,337 2,367,337
Opioid Epidemic Response - - - - 85,673 85,673
Total Restricted 58,086 33,350,676 6,702,038 9,556,473 4,438,191 54,105,464
Assigned
Compensated Absences 1,919,454 - - - - 1,919,454
Budget Stabilization 3,589,331 - - - - 3,589,331
Art and Culture 83,854 - - - - 83,854
Special Projects - - - 5,421,581 - 5,421,581
Equipment - - - 3,853,623 - 3,853,623
PIR - - - 13,209,812 - 13,209,812 Construction - - - 6,995,853 - 6,995,853
Total Assigned 5,592,639 - - 29,480,869 - 35,073,508
Unassigned 19,904,228 - - - - 19,904,228
Total Fund Balance 25,635,462$ 33,350,676$ 6,702,038$ 39,037,342$ 4,439,670$ 109,165,188$
B. Unassigned Fund Balance Policy
The City Council has formally adopted a fund balance policy regarding the desired range
for unassigned fund balance for the general fund. The policy establishes a goal for
unassigned general fund balance of 42% – 47% of the subsequent year’s budgeted
property tax revenue. As of December 31, 2022, the City has $19,878,774 of unassigned
fund balance in the general fund, or 49.92% of 2023 budgeted property tax revenue.
This amount is $1,163,281 above the top of the goal identified in the policy.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Required Supplementary Information.
(75)
2022
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes:
General Property Taxes 36,708,036$ 36,708,036$ 36,497,426$ (210,610)$
Franchise Taxes 810,000 810,000 808,850 (1,150)
Lodging Tax 20,000 20,000 25,751 5,751
Total Taxes 37,538,036 37,538,036 37,332,027 (206,009)
Licenses and Permits 5,391,060 5,391,060 7,403,206 2,012,146
Intergovernmental:
Federal 429,750 429,750 1,475,791 1,046,041
State:
Municipal State Aid 195,000 195,000 195,000 -
Other 175,000 175,000 1,497,675 1,322,675
State Aid - Police 520,000 520,000 525,028 5,028
State Aid - Fire 450,000 450,000 456,045 6,045
Health Programs 119,000 119,000 172,447 53,447
Total Intergovernmental 1,888,750 1,888,750 4,321,986 2,433,236
Charges for Services:
Administration 21,700 21,700 28,454 6,754
Communications and Technology 71,220 71,220 72,160 940
Finance 1,373,732 1,373,732 1,373,232 (500)
Public Works - - 18,510 18,510
Engineering 230,400 230,400 91,597 (138,803)
Police 736,900 736,900 904,481 167,581
Fire 2,529,120 2,529,120 2,497,994 (31,126)
Parks and Recreation 687,838 687,838 732,400 44,562
Community Development 87,495 87,495 67,158 (20,337)
Total Charges for Services 5,738,405 5,738,405 5,785,986 47,581
Fines and Forfeits 650,000 650,000 359,680 (290,320)
Miscellaneous:
Investment Income 250,000 250,000 (1,167,123) (1,417,123)
Rental of Property 339,000 339,000 711,100 372,100
Other 36,500 36,500 180,557 144,057
Total Miscellaneous 625,500 625,500 (275,466) (900,966)
Total Revenues 51,831,751 51,831,751 54,927,419 3,095,668
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Required Supplementary Information.
(76)
2022
Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES
Current:
General Government:
Administration:
Personal Services 1,479,141$ 1,479,141$ 1,369,869$ (109,272)$
Contractual Services 1,127,320 1,127,320 922,141 (205,179)
Commodities 174,828 174,828 47,771 (127,057)
Internal Services 157,717 157,717 157,787 70
Total Administration 2,939,006 2,939,006 2,497,568 (441,438)
Communications:
Personal Services 972,891 972,891 900,474 (72,417)
Contractual Services 400,270 400,270 435,527 35,257
Commodities 36,000 36,000 23,351 (12,649)
Internal Services 115,515 115,515 115,515 -
Total Communications 1,524,676 1,524,676 1,474,867 (49,809)
Human Resources:
Personal Services 1,194,917 1,194,917 1,408,873 213,956
Contractual Services 178,220 178,220 169,937 (8,283)
Commodities 28,100 28,100 3,919 (24,181)
Internal Services 60,773 60,773 60,773 -
Total Human Resources 1,462,010 1,462,010 1,643,502 181,492
Finance:
Personal Services 991,147 991,147 919,039 (72,108)
Contractual Services 306,670 306,670 1,070,284 763,614
Commodities 15,000 15,000 126,274 111,274
Internal Services 72,666 72,666 72,666 -
Total Finance 1,385,483 1,385,483 2,188,263 802,780
Community Development:
Personal Services 1,624,831 1,624,831 1,470,370 (154,461)
Contractual Services 317,010 317,010 908,923 591,913
Commodities 7,000 7,000 4,761 (2,239)
Internal Services 150,804 150,804 150,804 -
Total Community Development 2,099,645 2,099,645 2,534,858 435,213
Total General Government 9,410,820 9,410,820 10,339,058 928,238
Public Safety:
Police:
Personal Services 11,414,937 11,414,937 11,531,576 116,639
Contractual Services 1,063,012 1,063,012 1,094,110 31,098
Commodities 132,936 132,936 165,363 32,427
Internal Services 1,564,930 1,564,930 1,564,930 -
Total Police 14,175,815 14,175,815 14,355,979 180,164
Fire:
Personal Services 9,182,474 9,182,474 8,515,782 (666,692)
Contractual Services 956,355 956,355 878,406 (77,949)
Commodities 358,280 358,280 294,106 (64,174)
Internal Services 740,616 740,616 740,616 -
Total Fire 11,237,725 11,237,725 10,428,910 (808,815)
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Required Supplementary Information.
(77)
2022
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
EXPENDITURES (CONTINUED)
Current (Continued):
Public Safety (Continued):
Public Health:
Personal Services 652,911$ 652,911$ 704,046$ 51,135$
Contractual Services 426,996 426,996 469,629 42,633
Commodities 9,000 9,000 2,360 (6,640)
Internal Services 65,451 65,451 65,451 -
Total Public Health 1,154,358 1,154,358 1,241,486 87,128
Total Public Safety 26,567,898 26,567,898 26,026,375 (541,523)
Public Works:
Public Works:
Personal Services 2,851,052 2,881,052 3,036,862 155,810
Contractual Services 764,620 764,620 551,060 (213,560)
Commodities 1,179,000 1,179,000 1,216,516 37,516
Internal Services 1,210,741 1,210,741 1,213,081 2,340
Total Public Works 6,005,413 6,035,413 6,017,519 (17,894)
Engineering:
Personal Services 2,168,450 2,138,450 1,902,549 (235,901)
Contractual Services 1,058,560 1,058,560 1,151,561 93,001
Commodities 115,500 115,500 73,346 (42,154)
Internal Services 273,789 273,789 273,789 -
Total Engineering 3,616,299 3,586,299 3,401,245 (185,054)
Total Public Works 9,621,712 9,621,712 9,418,764 (202,948)
Parks:
Parks and Recreation:
Personal Services 3,948,835 3,948,835 3,791,339 (157,496)
Contractual Services 1,667,582 1,667,582 1,709,786 42,204
Commodities 419,700 419,700 350,570 (69,130)
Internal Services 595,204 595,204 595,204 -
Total Parks and Recreation 6,631,321 6,631,321 6,446,899 (184,422)
Total Parks 6,631,321 6,631,321 6,446,899 (184,422)
Capital Outlay:
General Government - - 281,557 281,557
Public Safety - - 14,205 14,205
Total Capital Outlay - - 295,762 295,762
Debt Service:
Principal - - 2,829 2,829
Interest and Fiscal Charges - - 279 279
Total Debt Service - - 3,108 3,108
Total Expenditures 52,231,751 52,231,751 52,529,966 298,215
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Required Supplementary Information.
(78)
2022
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
REVENUES OVER (UNDER)
EXPENDITURES (400,000)$ (400,000)$ 2,397,453$ 2,797,453$
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets - - 7,050 7,050
Transfers In - - 207,900 207,900
Transfers Out - - (750,482) (750,482)
Total Financing Sources (Uses) - - (535,532) (535,532)
NET INCREASE (DECREASE) IN FUND
BALANCE (400,000)$ (400,000)$ 1,861,921 2,261,921$
Fund Balance - January 1 23,773,541
FUND BALANCE - DECEMBER 31 25,635,462$
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
YEAR ENDED DECEMBER 31, 2022
See accompanying Notes to Required Supplementary Information.
(79)
2022
Actual Variance with
Original Final Amounts Final Budget
REVENUES
General Property Taxes 237,300$ 237,300$ 235,598$ (1,702)$
Tax increment Collections 1,670,245 1,670,245 1,720,243 49,998
Investment Income 186,000 186,000 (680,996) (866,996)
Charges for Services - - 173,508 173,508
Other Revenues - - 4,131,953 4,131,953
Total Revenues 2,093,545 2,093,545 5,580,306 3,486,761
EXPENDITURES
Current:
Personal Services 197,566 197,566 199,346 1,780
Contractual Services 4,504,220 4,504,220 6,890,248 2,386,028
Commodities 3,000 3,000 256 (2,744)
Internal Services - - 10,000 10,000
Capital Outlay - - 4,066,359 4,066,359
Debt Service:
Interest and Fiscal Charges 133,967 133,967 - (133,967)
Total Expenditures 4,838,753 4,838,753 11,166,209 6,327,456
NET (DECREASE) IN FUND
BALANCE (2,745,208)$ (2,745,208)$ (5,585,903) (2,840,695)$
Fund Balance - January 1 38,936,579
FUND BALANCE - DECEMBER 31 33,350,676$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE CITY’S TOTAL
OPEB LIABILITY AND RELATED RATIOS
YEAR ENDED DECEMBER 31, 2022
Notes: The City implemented GASB Statement No. 75 in fiscal 2018. This schedule is intended to present 10-year trend
information. Additional years will be added as they become available. No plan assets are accumulated in a trust that meets the
criteria in paragraph 4 of GASB Statement No. 75.
(80)
December 31, December 31, December 31, December 31, December 31,
2021 2020 2019 2018 2017
Total OPEB Liability:
Service Cost 280,452$ 239,792$ 192,093$ 296,634$ 270,435$
Interest 58,062 65,302 154,222 128,559 127,096
Difference Between Expected
and Actual Experience 1,503,227 9,714 (1,909,627) - -
Changes of Assumptions (790,776) 105,246 212,364 (178,824) 87,259
Benefit Payments (119,930) (90,566) (77,801) (138,732) (133,679)
Net Changes in Total OPEB Liability 931,035 329,488 (1,428,749) 107,637 351,111
Total OPEB Liability - Beginning of Year 2,518,251 2,188,763 3,617,512 3,509,875 3,158,764
Total OPEB Liability - End of Year 3,449,286$ 2,518,251$ 2,188,763$ 3,617,512$ 3,509,875$
Covered-Employee Payroll 30,100,000$ 26,700,000$ 25,800,000$ 24,800,000$ 23,900,000$
Total OPEB Liability as a Percentage
of Covered-Employee Payroll 11.46% 9.43% 8.48% 14.59% 14.69%
Measurement Date
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
GERF SCHEDULE OF CITY’S AND NONEMPLOYER PROPORTIONATE SHARE OF NET PENSION
LIABILITY AND SCHEDULE OF CITY CONTRIBUTIONS
YEAR ENDED DECEMBER 31, 2022
Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule
is intended to present 10-year trend information. Additional years will be added as they become available.
(81)
City's Proportionate
Share of the Net
State's Pension Liability City's Plan
Proportionate and the State's Proportionate Fiduciary Net
City's City's Share of the Proportionate Share of the Position as a
PERA Fiscal Proportion Proportionate Net Pension Share of the Net Net Pension Percentage
City Fiscal Year-End Date of the Net Share of the Liability Pension Liability City's Liability as a of the Total
Year End (Measurement Pension Net Pension Associated Associated with Covered Percentage of Pension
Date Date) Liability Liability with the City the City Payroll Covered Payroll Liability
12/31/2015 6/30/2015 0.2683% 13,765,652$ -$ 13,765,652$ 15,508,173$ 88.76% 78.20%
12/31/2016 6/30/2016 0.2656% 21,349,748 278,868 21,628,616 16,481,973 131.23% 68.91%
12/31/2017 6/30/2017 0.2772% 17,519,302 220,299 17,739,601 17,858,560 99.33% 75.90%
12/31/2018 6/30/2018 0.2679% 14,713,374 482,647 15,196,021 18,007,013 84.39% 79.53%
12/31/2019 6/30/2019 0.2694% 14,745,577 462,813 15,208,390 19,063,827 79.78% 80.00%
12/31/2020 6/30/2020 0.2764% 16,405,731 511,142 16,916,873 19,847,440 85.23% 79.06%
12/31/2021 6/30/2021 0.2911% 12,320,807 379,625 12,700,432 20,898,307 60.77% 87.00%
12/31/2022 6/30/2022 0.2927% 22,973,466 673,551 23,647,017 21,857,115 108.19% 76.70%
Contributions
in Relation to
City Fiscal Statutorily the Statutorily Contribution Contributions as a
Year-End Required Required Deficiency Covered Percentage of
Date Contributions Contributions (Excess) Payroll Covered Payroll
12/31/2015 1,248,845$ 1,248,845$ -$ 16,651,267$ 7.50%
12/31/2016 1,265,817 1,265,817 - 16,877,560 7.50%
12/31/2017 1,317,596 1,317,596 - 17,567,947 7.50%
12/31/2018 1,378,743 1,378,743 - 18,382,627 7.50%
12/31/2019 1,471,059 1,471,059 - 19,614,120 7.50%
12/31/2020 1,518,494 1,518,494 - 20,246,587 7.50%
12/31/2021 1,607,199 1,607,199 - 21,429,320 7.50%
12/31/2022 1,696,759 1,696,759 - 22,623,453 7.50%
Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability
Schedule of City Contributions
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PEPFF SCHEDULE OF CITY’S PROPORTIONTE SHARE OF NET PENSION LIABILITY AND
SHEDULE OF CITY CONTRIBUTIONS
YEAR ENDED DECEMBER 31, 2022
Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule
is intended to present 10-year trend information. Additional years will be added as they become available.
(82)
City's Proportionate
Share of the Net
State's Pension Liability City's Plan
Proportionate and the State's Proportionate Fiduciary Net
City's City's Share of the Proportionate Share of the Position as a
PERA Fiscal Proportion Proportionate Net Pension Share of the Net Net Pension Percentage
City Fiscal Year-End Date of the Net Share of the Liability Pension Liability City's Liability as a of the Total
Year-End (Measurement Pension Net Pension Associated Associated with Covered Percentage of Pension
Date Date)Liability Liability with the City the City Payroll Covered Payroll Liability
12/31/2015 6/30/2015 0.8070% 9,169,408$ -$ 9,169,408$ 7,797,803$ 117.59% 86.60%
12/31/2016 6/30/2016 0.7990% 32,065,260 - 32,065,260 7,699,821 416.44% 63.88%
12/31/2017 6/30/2017 0.8110% 10,949,465 - 10,949,465 8,322,605 131.56% 85.43%
12/31/2018 6/30/2018 0.8022% 8,550,626 - 8,550,626 8,454,142 101.14% 88.84%
12/31/2019 6/30/2019 0.8479% 9,026,752 - 9,026,752 9,151,062 98.64% 89.30%
12/31/2020 6/30/2020 0.8704% 11,472,803 270,277 11,743,080 9,819,457 119.59% 87.19%
12/31/2021 6/30/2021 0.8688% 6,706,215 301,506 7,007,721 10,268,277 68.25% 93.70%
12/31/2022 6/30/2022 0.8758% 38,111,357 1,664,806 39,776,163 7,638,687 520.72% 70.50%
Contributions
in Relation to
City Fiscal Statutorily the Statutorily Contribution Contributions as a
Year-End Required Required Deficiency Covered Percentage of
Date Contributions Contributions (Excess)Payroll Covered Payroll
12/31/2015 1,268,476$ 1,268,476$ -$ 7,830,099$ 16.20%
12/31/2016 1,272,485 1,272,485 - 7,854,846 16.20%
12/31/2017 1,335,917 1,335,917 - 8,246,401 16.20%
12/31/2018 1,399,053 1,399,053 - 8,623,704 16.22%
12/31/2019 1,595,304 1,595,304 - 9,847,556 16.20%
12/31/2020 1,784,694 1,784,694 - 10,083,017 17.70%
12/31/2021 1,850,353 1,850,353 - 10,453,972 17.70%
12/31/2022 1,953,054 1,953,054 - 11,034,203 17.70%
Schedule of City's Proportionate Share of Net Pension Liability
Schedule of City Contributions
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(83)
NOTE 1 LEGAL COMPLIANCE – BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the
preceding schedules:
1. The City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted by the passage of a resolution by the City Council.
4. Formal budgetary integration is employed as a management control device during
the year.
5. Budgets for all governmental funds are adopted on a basis consistent with
accounting principles generally accepted in the United States of America.
6. Reported budget amounts are as originally adopted or as amended by Council-
approved supplemental appropriations and budget transfers.
7. Expenditures may not legally exceed appropriations by department in the General
Fund unless offset by increases in revenues. All unencumbered appropriations lapse
at year-end.
NOTE 2 EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund is legally adopted on a basis consistent with accounting principles
generally accepted in the United States of America. The legal level of budgetary control is at
the department level for the General Fund. The following is a listing of General Fund
departments whose expenditures exceed budget appropriations.
Final Over
Budget Actual Budget
General Fund:
General Government:
Human Resources 1,462,010$ 1,643,502$ 181,492$
Finance 1,385,483 2,188,263 802,780
Community Development 2,099,645 2,534,858 435,213
Public Safety:
Police 14,175,815 14,355,979 180,164
Public Health 1,154,358 1,241,486 87,128
Debt Service - 3,108 3,108
Excess expenditures in the Human Resources are due to severance in the current year.
Severance varies from year to year. Excess expenditures in Finance are due to American
Rescue Plan Act (ARPA) expenditures incurred in 2022. Remaining excess expenditures
were due to slightly higher than anticipated costs.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(84)
NOTE 2 EXCESS OF EXPENDITURES OVER APPROPRIATIONS (CONTINUED)
The remaining governmental funds budgets are legally adopted on a basis consistent with
accounting principles generally accepted in the United States of America. The legal level of
budgetary control is at the fund level for these funds. The following is a listing of funds
whose expenditures exceed budget appropriations.
Final Over
Budget Actual Budget
Housing and Revelopment Authority 4,838,753$ 11,166,209$ 6,327,456$
Debt Service Fund 5,870,201 11,293,281 5,423,080
Construction Fund 11,561,120 26,464,719 14,903,599
CDBG Fund 135,000 154,092 19,092
Conservation and Sustainability 752,185 846,869 94,684
Excess expenditures in the debt service fund are the result of higher than anticipated costs
related to the issuance of new debt as well as total interest payments. Excess expenditures
in the construction fund are the result of the timing of several larger construction projects.
Excess expenditures in the remaining funds are due to slightly higher than anticipated costs.
NOTE 3 PENSION INFORMATION
General Employees Retirement Fund
2022 Changes
Changes in Actuarial Assumptions:
x The mortality improvement scale was changed from Scale MP-2020 to Scale
MP-2021.
2021 Changes
Changes in Actuarial Assumptions:
x The investment return and single discount rates were changed from 7.50% to
6.50%, for financial reporting purposes.
x The mortality improvement scale was changed from Scale MP-2019 to Scale
MP-2020.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(85)
NOTE 3 PENSION INFORMATION (CONTINUED)
General Employees Retirement Fund (Continued)
2020 Changes
Changes in Actuarial Assumptions
x The price inflation assumption was decreased from 2.50% to 2.25%.
x The payroll growth assumption was decreased from 3.25% to 3.00%.
x 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% less
than previous rates.
x 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.
x 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 two through five and slightly higher
thereafter.
x 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.
x 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.
x The mortality improvement scale was changed from Scale MP-2018 to Scale
MP-2019.
x The assumed spouse age difference was changed from two years older for
females to one year older.
x The assumed number of married male new retirees electing the 100% Joint &
Survivor option changed from 35% to 45%. The assumed number of married
female new retirees electing the 100% Joint & Survivor option changed from 15%
to 30%. The corresponding number of married new retirees electing the Life
annuity option was adjusted accordingly.
Changes in Plan Provisions
x Augmentation for current privatized members was reduced to 2.0% for the period
July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was
eliminated for privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
x The morality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
x 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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(86)
NOTE 3 PENSION INFORMATION (CONTINUED)
General Employees Retirement Fund (Continued)
2018 Changes
Changes in Actuarial Assumptions:
x The mortality projection scale was changed from MP-2015 to MP-2017.
x The assumed benefit increase was changed from 1.00% per year through 2044
and 2.50% per year thereafter to 1.25% per year.
Changes in Plan Provisions
x 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.
x Interest credited on member contributions decreased from 4.00% to 3.00%,
beginning July 1, 2018.
x Deferred augmentation was changed to 0.00% , effective January 1, 2019.
Augmentation that has already accrued for deferred members will still apply.
x Contribution stabilizer provisions were repealed.
x Postretirement benefit increases were changed from 1.00% per year with a
provision to increase to 2.50% upon attainment of 90.00% funding ratio to
50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and
not more than 1.50%, beginning January 1, 2019.
x 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.
x Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions:
x The Combined Service Annuity (CSA) loads were changed from 0.8% for active
members and 60% for vested and nonvested deferred members. The revised
CSA loads are now 0.0% for active member liability, 15.0% for vested deferred
member liability, and 3.0% for nonvested deferred member liability.
x The assumed postretirement benefit increase rate was changed from 1.0% per
year for all years to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
x The State’s contribution for the Minneapolis Employees Retirement Fund equals
$16,000,000 in 2017 and 2018, and $6,000,000 thereafter.
x 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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(87)
NOTE 3 PENSION INFORMATION (CONTINUED)
General Employees Fund Retirement Fund (Continued)
2016 Changes
Changes in Actuarial Assumptions:
x The assumed postretirement benefit increase rate was changed from 1.0% per
year through 2035 and 2.5% per year thereafter to 1.0% per year for all years.
x The assumed investment return was changed from 7.9% to 7.5%. The single
discount rate was changed from 7.9% to 7.5%.
x 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% to 3.25% for payroll growth and 2.5% for
inflation.
Changes in Plan Provisions
x There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions:
x The assumed postretirement benefit increase rate was changed from 1.0% per year
through 2030 and 2.5% per year thereafter to 1.0% per year through 2035 and
x 2.5% per year thereafter.
Changes in Plan Provisions:
x On January 1, 2015, the Minneapolis Employees Retirement Fund was merged
into the General Employees Fund, which increased the total pension liability by
$1.1 billion and increased the fiduciary plan net position by $892 million. Upon
consolidation, state and employer contributions were revised.
Public Employees Police and Fire Fund
2022 Changes
Change in Actuarial Assumptions:
x The mortality improvement scale was changed from Scale MP-2020 to Scale
MP-2021.
x The single discount rate changed from 6.50% to 5.40%.
2021 Changes
Changes in Actuarial Assumptions:
x The investment return and single discount rates were changed from 7.50% to
6.50%, for financial reporting purposes.
x The inflation assumption was changed from 2.50% to 2.25%.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(88)
NOTE 3 PENSION INFORMATION (CONTINUED)
Public Employees Police and Fire Fund (Continued)
2021 Changes (Continued)
x The payroll growth assumption was changed from 3.25% to 3.00%.
x 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.
x 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).
x 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.
x 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.
x Assumed rates of withdrawal were changed from select and ultimate rates to
service-based rates. The changes result in more assumed terminations.
x Assumed rates of disability were increased for ages 25-44 and decreased for
ages over 49. Overall, proposed rates result in more projected disabilities.
x Assumed percent married for active female members was changed from 60% to
70%. Minor changes to form of payment assumptions were applied.
2020 Changes
Changes in Actuarial Assumptions
x The morality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
x There have been no changes since the prior valuation.
2019 Changes
Changes in Actuarial Assumptions
x The morality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
x There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions:
x The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
x Postretirement benefit increases were changed to 1.00% for all years, with no
trigger.
x An end date of July 1, 2048 was added to the existing $9.0 million state
contribution.
x 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% funding, or July 1, 2048, if
earlier.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(89)
NOTE 3 PENSION INFORMATION (CONTINUED)
Public Employees Police and Fire Fund (Continued)
2018 Changes
Changes in Plan Provisions (Continued)
x Member contributions were changed from 10.80% to 11.30% of pay, effective
January 1, 2019 and 11.80% of pay, effective January 1, 2020.
x Employer contributions were changed from 16.20% to 16.95% of pay, effective
January 1, 2019 and 17.70% of pay, effective January 1, 2020.
x Interest credited on member contributions decreased from 4.00% to 3.00%,
beginning July 1, 2018.
x Deferred augmentation was changed to 0.00%, effective January 1, 2019.
Augmentation that has already accrued for deferred members will still apply.
x Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
x Assumed salary increases were changed as recommended in the June 30, 2016
experience study. The net effect is proposed rates that average 0.34% lower
than the previous rates.
x Assumed rates of retirement were changed, resulting in fewer retirements.
x The Combined Service Annuity (CSA) load was 30% for vested and nonvested
deferred members. The CSA has been changed to 33% for vested members and
2% for nonvested members.
x 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.
x Assumed termination rates were decreased to 3.0% for the first three years of
service. Rates beyond the select period of three years were adjusted, resulting in
more expected terminations overall.
x Assumed percentage of married female members was decreased from 65% to
60%.
x 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.
x The assumed percentage of female members electing Joint and Survivor
annuities was increased.
x The assumed postretirement benefit increase rate was changed from 1.0% for all
years to 1.0% per year through 2064 and 2.5% thereafter.
x The single discount rate changed from 5.6% to 7.5% per annum.
Changes in Plan Provisions
x There have been no changes since the prior valuation.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2022
(90)
NOTE 3 PENSION INFORMATION (CONTINUED)
Public Employees Police and Fire Fund (Continued)
2016 Changes
Changes in Actuarial Assumptions:
x The assumed postretirement benefit increase rate was changed from 1.05% per
year through 2037 and 2.5% thereafter to 1.0% per year for all future years.
x The assumed investment return was changed from 7.9% to 7.5%. The single
discount rate changed from 7.9% to 5.6%.
x The assumed future salary increases, payroll growth, and inflation were
decreased by 0.25% to 3.25% for payroll growth and 2.5% for inflation.
Changes in Plan Provisions
x There have been no changes since the prior valuation.
2015 Changes
Changes in Plan Provisions:
x The postretirement benefit increase to be paid after attainment of the 90%
funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
Changes in Actuarial Assumptions:
x The assumed postretirement benefit increase rate was changed from 1.0% per
year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037
and 2.5% per year thereafter.
NOTE 4 OTHER POSTEMPLOYMENT BENEFITS INFORMATION
Other Postemployment Benefits Plan
2021 Changes
Changes in Actuarial Assumptions:
x The discount rate was changed from 2.74% to 2.06%.
x The payroll growth rate was changed from 3.25% to 2.50%
2020 Changes
Changes in Actuarial Assumptions:
x The discount rate was changed from 4.09% to 2.74%.
x The payroll growth rate was changed from 3.50% to 3.25%
2019 Changes
Changes in Actuarial Assumptions:
x The discount rate was changed from 3.44% to 4.09%.
2018 Changes
Changes in Actuarial Assumptions:
x The discount rate was changed from 4.50% to 3.44%.
(This page left blank intentionally.)
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
A Special Revenue Fund is used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes. The following are nonmajor special revenue
funds:
Community Development Block Grant Fund – This fund was established to account for funds received
under Title I of the Housing and Community Development Act of 1974.
Police Fund – This fund was established to account for funds received for specific purposes within the
police department, including E-911 and Forfeiture funds.
Braemar Memorial Fund – This fund was established to account for funds donated to the City for the
purpose of enhancing the Braemar golf course with equipment and amenities that might not otherwise
be affordable or viewed as a necessity to the golf course.
Pedestrian and Cyclist Safety Fund – This fund was established to account for funds received from gas
and electric franchise fees to be used for pedestrian and cyclist improvements included in future street
reconstruction projects.
Conservation and Sustainability Fund – This fund was established to account for funds received from
gas and electric franchise fees to be used for initiatives focused on conservation and sustainability.
Opioid Settlement Fund – This fund was established to account for funds that will be received over the
next 18 years for the City’s share of national settlement agreements with several pharmaceutical
companies related to opioid selling and distribution. These funds are restricted to be used for opioid
epidemic response activities.
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2022
(91)
Community Pedestrian Conservation Total Nonmajor
Development Braemar and Cyclist and Opioid Governmental
Block Grant Police Memorial Safety Sustainability Settlement Funds
Cash and Investments -$ 899,420$ 127,131$ 1,060,507$ 2,185,843$ 85,673$ 4,358,574$
Accrued Interest - - 834 4,728 13,952 - 19,514
Accounts Receivable - - - 304,153 240,361 - 544,514
Due from Other Governments - 19,331 - - - 352,371 371,702
Prepaid Items - 1,479 - - - 1,479
Total Assets -$ 920,230$ 127,965$ 1,369,388$ 2,440,156$ 438,044$ 5,295,783$
Liabilities:
Accounts Payable -$ 66,466$ -$ 338,224$ 67,638$ -$ 472,328$
Salaries Payable - - - 5,816 5,181 - 10,997
Contracts Payable - - - 19,484 - - 19,484
Due to Other Governments - 933 - - - 933
Total Liabilities - 67,399 - 363,524 72,819 - 503,742
Deferred Inflows of Resources:
Unavailable Revenue - - - - - 352,371 352,371
Fund Balance:
Nonspendable - 1,479 - - - 1,479
Restricted - 851,352 127,965 1,005,864 2,367,337 85,673 4,438,191
Total Fund Balance - 852,831 127,965 1,005,864 2,367,337 85,673 4,439,670
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balance -$ 920,230$ 127,965$ 1,369,388$ 2,440,156$ 438,044$ 5,295,783$
Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Special Revenue
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2022
(92)
Community Pedestrian Conservation Total Nonmajor
Development Braemar and Cyclist and Opioid Governmental
Block Grant Police Memorial Safety Sustainability Settlement Funds
REVENUES
Franchise Taxes -$ -$ -$ 1,221,217$ 961,222$ -$ 2,182,439$
Intergovernmental 154,092 33,754 - - - 85,673 273,519
Investment Income (Loss) - 81 (4,958) (24,623) (66,611) - (96,111)
Other Revenues - 311,835 2,160 - 20,232 - 334,227
Total Revenues 154,092 345,670 (2,798) 1,196,594 914,843 85,673 2,694,074
EXPENDITURES
Current:
General Government 154,092 - - - - - 154,092
Public Safety - 263,354 - - - - 263,354
Public Works - - - 136,088 373,891 - 509,979
Parks - - 382 - - - 382
Capital Outlay:
Public Works - - - 478,233 472,978 - 951,211
Total Expenditures 154,092 263,354 382 614,321 846,869 - 1,879,018
Revenues Over (Under)
Expenditures - 82,316 (3,180) 582,273 67,974 85,673 815,056
OTHER FINANCING SOURCES (USES)
Proceeds from Sale of Capital Assets - 8,507 - - - 8,507
NET INCREASE (DECREASE)
IN FUND BALANCE - 90,823 (3,180) 582,273 67,974 85,673 823,563
Fund Balance - January 1 - 762,008 131,145 423,591 2,299,363 - 3,616,107
FUND BALANCE -
DECEMBER 31 -$ 852,831$ 127,965$ 1,005,864$ 2,367,337$ 85,673$ 4,439,670$
Special Revenue
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(93)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Intergovernmental 135,000$ 135,000$ 154,092$ 19,092$
EXPENDITURES
Current:
General Government
Contractual Services 135,000 135,000 154,092 19,092
NET INCREASE (DECREASE) IN FUND
BALANCE -$ -$ - -$
Fund Balance - January 1 -
FUND BALANCE - DECEMBER 31 -$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – POLICE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(94)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Intergovernmental -$ -$ 33,754$ 33,754$
Investment Income - - 81 81
Other Revenues 289,122 289,122 311,835 22,713
Total Revenues 289,122 289,122 345,670 56,548
EXPENDITURES
Current:
Public Safety:
Contractual Services 257,000 257,000 179,937 (77,063)
Commodities 7,500 7,500 83,417 75,917
Total Expenditures 264,500 264,500 263,354 (1,146)
OTHER FINANCING SOURCES (USES)
Proceeds From Sale of Capital Assets - - 8,507 8,507
NET INCREASE (DECREASE) IN FUND
BALANCE 24,622$ 24,622$ 90,823 57,694$
Fund Balance - January 1 762,008
FUND BALANCE - DECEMBER 31 852,831$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – BRAEMAR MEMORIAL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(95)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Investment Income 1,000$ 1,000$ (4,958)$ (5,958)$
Donations 2,500 2,500 2,160 (340)
Total Revenues 3,500 3,500 (2,798) (6,298)
EXPENDITURES
Current:
Parks and Recreation:
Contractual Services 1,000 1,000 382 (618)
NET INCREASE (DECREASE) IN FUND
BALANCE 2,500$ 2,500$ (3,180) (5,680)$
Fund Balance - January 1 131,145
FUND BALANCE - DECEMBER 31 127,965$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – PEDESTRIAN AND CYCLIST SAFETY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(96)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Franchise Taxes 1,200,000$ 1,200,000$ 1,221,217$ 21,217$
Investment Income - - (24,623) (24,623)
Total Revenues 1,200,000 1,200,000 1,196,594 (3,406)
EXPENDITURES
Current:
Public Works:
Personal Services 124,371 124,371 96,113 (28,258)
Contractual Services 75,720 75,720 27,542 (48,178)
Commodities 13,000 13,000 3,630 (9,370)
Internal Services 8,803 8,803 8,803 -
Capital Outlay:
Public Works: 1,030,000 1,030,000 478,233 (551,767)
Total Expenditures 1,251,894 1,251,894 614,321 (637,573)
NET INCREASE (DECREASE) IN FUND
BALANCE (51,894)$ (51,894)$ 582,273 634,167$
Fund Balance - January 1 423,591
FUND BALANCE - DECEMBER 31 1,005,864$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – CONSERVATION AND SUSTAINABILITY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(97)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Franchise Taxes 1,000,000$ 1,000,000$ 961,222$ (38,778)$
Investment Income (Loss) 15,000 15,000 (66,611) (81,611)
Other Revenues - - 20,232 20,232
Total Revenues 1,015,000 1,015,000 914,843 (100,157)
EXPENDITURES
Current:
Public Works:
Personal Services 145,820 145,820 119,581 (26,239)
Contractual Services 96,020 96,020 176,770 80,750
Commodities 1,200 1,200 68,395 67,195
Internal Services 9,145 9,145 9,145 -
Capital Outlay:
Public Works 500,000 500,000 472,978 (27,022)
Total Expenditures 752,185 752,185 846,869 94,684
NET INCREASE (DECREASE) IN FUND
BALANCE 262,815$ 262,815$ 67,974 (194,841)$
Fund Balance - January 1 2,299,363
FUND BALANCE - DECEMBER 31 2,367,337$
Budgeted Amounts
MAJOR GOVERNMENTAL FUNDS
Debt Service Fund – This fund was established to account for the payment of principal and interest on
the General Obligation, Permanent Improvement Revolving, Public Project Revenue, and Edina
Emerald Energy Program Bonds.
Construction Fund – This fund was established to account for various special assessment and state aid
projects throughout the City. This fund also provides financing for capital improvements as designated
in the City’s capital improvement budget.
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND – DEBT SERVICE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(98)
Actual Variance with
Original Final Amounts Final budget
REVENUES
General Property Taxes 3,232,000$ 3,232,000$ 3,206,628$ (25,372)$
Special Assessments - - 191,410 191,410
Total Revenues 3,232,000 3,232,000 3,398,038 166,038
EXPENDITURES
Debt Service 5,870,201 5,870,201 11,293,281 5,423,080
REVENUES (UNDER)
EXPENDITURES (2,638,201) (2,638,201) (7,895,243) (5,257,042)
OTHER FINANCING SOURCES (USES)
Transfers In 2,979,563 2,979,563 2,765,516 (214,047)
Bonds Issued - - 653,273 653,273
Total Other Financing
Sources (Uses) 2,979,563 2,979,563 3,418,789 439,226
NET INCREASE (DECREASE) IN FUND
BALANCE 341,362$ 341,362$ (4,476,454) (4,817,816)$
Fund Balance - January 1 11,178,492
FUND BALANCE - DECEMBER 31 6,702,038$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND – CONSTRUCTION CAPITAL PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2022
(99)
Actual Variance with
Original Final Amounts Final budget
REVENUES
General Property Taxes 5,190,000$ 4,240,000$ 5,156,593$ 916,593$
Franchise Taxes 90,000 90,000 80,262 (9,738)
Special Assessments 4,624,553 4,624,553 4,234,746 (389,807)
License and Permits 73,500 73,500 78,892 5,392
Intergovernmental 3,916,559 3,916,559 1,864,122 (2,052,437)
Charges for Services 195,000 195,000 294,917 99,917
Investment Income 203,000 203,000 (959,017) (1,162,017)
Other Revenues - - 90,515 90,515
Total Revenues 14,292,612 13,342,612 10,841,030 (2,501,582)
EXPENDITURES
Current:
General Government:
Contractual Services - - 375,921 375,921
Commodities - - (82) (82)
Public Safety:
Contractual Services - - 237,126 237,126
Public Works:
Personal Services 108,575 108,575 111,841 3,266
Contractual Services 340,071 340,071 1,444,253 1,104,182
Commodities 56,675 56,675 16,308 (40,367)
Internal Services 864 864 864 -
Parks:
Contractual Services - - 24,024 24,024
Capital Outlay:
General Government 496,000 496,000 495,809 (191)
Public Safety 701,550 701,550 16,639,445 15,937,895
Public Works 8,879,385 8,879,385 6,841,698 (2,037,687)
Parks 978,000 978,000 277,512 (700,488)
Total Expenditures 11,561,120 11,561,120 26,464,719 14,903,599
REVENUES OVER (UNDER)
EXPENDITURES 2,731,492 1,781,492 (15,623,689) (17,405,181)
OTHER FINANCING SOURCES (USES)
Transfers In 100,000 100,000 850,482 750,482
Transfers Out (2,979,563) (2,979,563) (2,765,516) 214,047
Sale of Capital Assets - - 90,849 90,849
Bonds Issued 1,768,370 1,768,370 28,956,727 27,188,357
Premium on Bonds Issued - - 1,691,560 1,691,560
Total Other Financing
Sources (Uses) (1,111,193) (1,111,193) 28,824,102 29,935,295
NET INCREASE (DECREASE) IN FUND
BALANCE 1,620,299$ 670,299$ 13,200,413 12,530,114$
Fund Balance - January 1 25,836,929
FUND BALANCE - DECEMBER 31 39,037,342$
Budgeted Amounts
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NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
Enterprise funds account for the financing of self-supporting activities of governmental units which
render services to the general public on a user charge basis. The following are nonmajor enterprise
funds:
Art Center Fund – This fund accounts for activities related to the City’s Art Center.
Edinborough Park Fund – This fund accounts for activities related to Edinborough Park.
Centennial Lakes Fund – This fund accounts for activities related to Centennial Lakes Park.
Braemar Field Fund – This fund accounts for activities related to the Sports Dome.
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
DECEMBER 31, 2022
(100)
Total Nonmajor
Art Edinborough Centennial Braemar Proprietary
Center Park Lakes Field Funds
ASSETS
Current Assets:
Cash and Investments 197,462$ 485,806$ 461,270$ 1,252,327$ 2,396,865$
Interest Receivable - 3,729 1,749 8,150 13,628
Accounts Receivable 175 11,009 3,424 - 14,608
Due from Other Governments - - 654 - 654
Total Current Assets 197,637 500,544 467,097 1,260,477 2,425,755
Noncurrent Assets:
Net Capital Assets 30,979 1,948,000 2,067,957 5,523,003 9,569,939
Total Assets 228,616 2,448,544 2,535,054 6,783,480 11,995,694
DEFERRED OUTFLOWS OF RESOURCES
OPEB Deferred Outflows 532 23,979 13,108 - 37,619
Pension Deferred Outflows 36,137 176,770 132,972 38,322 384,201
Total Deferred Outflows of Resources 36,669 200,749 146,080 38,322 421,820
LIABILITIES
Current Liabilities:
Accounts Payable 5,025 62,405 29,243 7,290 103,963
Salaries Payable 5,064 42,675 26,786 6,129 80,654
Due to Other Governments 119 8,606 3,398 649 12,772
Unearned Revenue 1,471 5,704 6,854 - 14,029
Compensated Absences Payable 10,529 29,304 7,420 - 47,253
Total Current Liabilities 22,208 148,694 73,701 14,068 258,671
Noncurrent Liabilities:
Total OPEB Liability 12,768 31,689 22,774 - 67,231
Net Pension Liability 114,355 559,383 420,784 121,269 1,215,791
Compensated Absences Payable 15,793 43,957 11,130 - 70,880
Total Noncurrent Liabilities 142,916 635,029 454,688 121,269 1,353,902
Total Liabilities 165,124 783,723 528,389 135,337 1,612,573
DEFERRED INFLOWS OF RESOURCES
OPEB Deferred Inflows 400 23,579 15,179 - 39,158
Pension Deferred Inflows 1,687 8,251 6,206 1,789 17,933
Total Deferred Inflows of Resources 2,087 31,830 21,385 1,789 57,091
NET POSITION
Net Investment in Capital Assets 30,979 1,948,000 2,067,957 5,523,003 9,569,939
Unrestricted 67,095 (114,260) 63,403 1,161,673 1,177,911
Total Net Position 98,074$ 1,833,740$ 2,131,360$ 6,684,676$ 10,747,850$
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2022
(101)
Total Nonmajor
Art Edinborough Centennial Braemar Proprietary
Center Park Lakes Field Funds
OPERATING REVENUES
Sales - Retail -$ 11,590$ -$ -$ 11,590$
Sales - Concessions - 43,523 33,004 - 76,527
Memberships- 144,409 - - 144,409
Admissions - 708,461 - 24,306 732,767
Lodging Tax - 4,286 - - 4,286
Building Rental - 263,980 88,974 466,457 819,411
Rental of Equipment - - 167,221 - 167,221
Greens Fees - - 302,692 - 302,692
Class Registration and Other Fees 118,217 228,763 367,562 569 715,111
Total Operating Revenues 118,217 1,405,012 959,453 491,332 2,974,014
OPERATING EXPENSES
Cost of Sales and Services - 15,949 14,855 - 30,804
Personal Services 191,787 851,503 676,574 194,583 1,914,447
Contractual Services 57,239 260,749 277,444 170,479 765,911
Commodities 21,163 299,606 113,471 6,947 441,187
Internal Services 62,457 149,155 128,113 37,569 377,294
Depreciation 5,891 303,608 170,755 534,772 1,015,026
Total Operating Expenses 338,537 1,880,570 1,381,212 944,350 4,544,669
OPERATING INCOME (LOSS)(220,320) (475,558) (421,759) (453,018) (1,570,655)
NONOPERATING REVENUES
(EXPENSES)
Investment Income (1,111) (48,244) (17,357) (45,342) (112,054)
Donations 10,457 - 32,600 - 43,057
Miscellaneous 5,479 1,514 227 - 7,220
Total Nonoperating
Revenues (Expenses)14,825 (46,730) 15,470 (45,342) (61,777)
INCOME (LOSS) BEFORE
TRANSFERS (205,495) (522,288) (406,289) (498,360) (1,632,432)
TRANSFERS
Capital Contribution from Other Funds - 1,267,799 1,997,507 - 3,265,306
Transfers In 350,000 16,933 410,085 1,120 778,138
Total Contributions and Transfers 350,000 1,284,732 2,407,592 1,120 4,043,444
CHANGE IN NET POSITION 144,505 762,444 2,001,303 (497,240) 2,411,012
Net Position - January 1 (46,431) 1,071,296 130,057 7,181,916 8,336,838
NET POSITION - DECEMBER 31 98,074$ 1,833,740$ 2,131,360$ 6,684,676$ 10,747,850$
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2022
(102)
Total Nonmajor
Art Edinborough Centennial Braemar Proprietary
Center Park Lakes Field Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 135,198$ 1,563,441$ 1,010,748$ 491,482$ 3,200,869$
Payment to Suppliers (136,631) (879,760) (518,936) (219,778) (1,755,105)
Payment to Employees (217,944) (790,735) (716,113) (161,535) (1,886,327)
Net Cash Provided (Used) by Operating Activities (219,377) (107,054) (224,301) 110,169 (440,563)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Utility Contribution from Other Funds - - - - -
Transfer from Other Funds 350,000 16,933 410,085 1,120 778,138
Net Cash Provided by Noncapital Financing Activities 350,000 16,933 410,085 1,120 778,138
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of Capital Assets - - (41,399) - (41,399)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received - 8,252 3,869 18,030 30,151
NET INCREASE (DECREASE) IN CASH
AND INVESTMENTS 130,623 (81,869) 148,254 129,319 326,327
Cash and Investments - January 1 66,839 597,821 327,153 1,188,887 2,180,700
CASH AND INVESTMENTS - DECEMBER 31 197,462$ 515,952$ 475,407$ 1,318,206$ 2,507,027$
CASH AND INVESTMENTS PRESENTED ON THE STATEMENT
OF NET POSITION
Cash 197,462$ 515,952$ 475,407$ 1,318,206$ 2,507,027$
Investments - (30,146) (14,137) (65,879) (110,162)
Total Cash and Investments 197,462$ 485,806$ 461,270$ 1,252,327$ 2,396,865$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) (220,320)$ (475,558)$ (421,759)$ (453,018)$ (1,570,655)$
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by:
Operating Activities:
Depreciation 5,891 303,608 170,755 534,772 1,015,026
Miscellaneous Income 15,936 147,113 32,827 - 195,876
(Increase) Decrease in:
Receivables (175) 9,847 24,703 - 34,375
Due From Other Governments - - 2,266 150 2,416
Deferred Outflows of Resources 37,025 35,263 66,671 (3,856) 135,103
Increase (Decrease) in:
Accounts Payable 4,109 (157,812) 12,803 (4,242) (145,142)
Salaries Payable 2,326 10,215 2,094 1,451 16,086
Due to Other Governments 119 3,511 2,144 (541) 5,233
Unearned Revenue 1,220 1,469 (8,501) - (5,812)
Total OPEB Liability - 13,966 6,983 - 20,949
Net Pension Liability 17,439 252,348 143,240 75,612 488,639
Compensated Absences 4,409 15,311 (13,488) - 6,232
Deferred Inflows of Resources (87,356) (266,335) (245,039) (40,159) (638,889)
Total Adjustments 943 368,504 197,458 563,187 1,130,092
Net Cash Provided (Used) by Operating
Activities (219,377)$ (107,054)$ (224,301)$ 110,169$ (440,563)$
NONCASH INVESTING ACTIVITIES
Increase (Decrease) in Fair Value of
Investments (888)$ (51,719)$ (20,104)$ (66,565)$ (139,276)$
FIDUCIARY FUNDS
Custodial Funds
Custodial funds are used to report resources held by the City in a purely custodial capacity. The
following are custodial funds:
Police Seizure Fund – This fund accounts for assets seized by the Police Department.
Public Safety Training Facility – This fund accounts for assets and liabilities of the South Metro Public
Safety Training Facility, which is a joint venture that the City has fiduciary responsibilities for.
Minnesota Task Force 1 – This fund accounts for assets and liabilities of the Minnesota Task Force 1,
which is comprised of personnel and equipment from public safety and specialist personnel from
supporting entities that operates as part of a joint powers agreement that the City has administrative
responsibilities for.
(This page left blank intentionally.)
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
DECEMBER 31, 2022
(103)
Public Safety
Police Training Minnesota
Seizure Facility Task Force 1 Total
Cash and Investments 3,776$ 273,039$ 15,000$ 291,815$
Accounts Receivable - - 135 135
Due from Other Governmental Units - - 117,348 117,348
Total Assets 3,776 273,039 132,483 409,298
Accounts Payable - 25,560 69,918 95,478
Salaries Payable - 8,854 7,422 16,276
Due to Other Governmental Units 11,747 208 91,968 103,923
Unearned Revenue - 5,087 - 5,087
11,747 39,709 169,308 220,764
Restricted for Organizations and Other Governments (7,971)$ 233,330$ (36,825)$ 188,534$
ASSETS
LIABILITIES
NET POSITION
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
YEAR ENDED DECEMBER 31, 2022
Public Safety
Police Training Minnesota
Seizure Facility Task Force 1 Total
Collections on Behalf of Others -$ 638,202$ 1,071,446$ 1,709,648$
Payments on Behalf of Others 11,512 733,629 976,758 1,721,899
Net Increase (Decrease) in Fiduciary Net Position (11,512) (95,427) 94,688 (12,251)
Net Position - Beginning 3,541 328,757 (131,513) 200,785
Net Position - Ending (7,971)$ 233,330$ (36,825)$ 188,534$
ADDITIONS
DEDUCTIONS
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES, AND TAX CAPACITY RATES
(SHOWN BY YEAR OF TAX COLLECTIBILITY)
(104)
2018 2019 2020 2021 2022
Total Tax Capacity 141,934,212$ 151,279,391$ 157,910,360$ 164,716,554$ 169,928,228$
Increment Valuation (4,525,127) (5,229,452) (5,929,603) (8,291,891) (1,861,452)
Contribution to Fiscal
Disparities Pool (12,166,916) (13,440,625) (14,369,737) (15,151,282) (16,575,905)
Tax Capacity Used
for Rate Calculation 125,242,169 132,609,314 137,611,020 141,273,381 151,490,871
Fiscal Disparities Distribution 3,210,559 3,473,642 3,700,282 4,049,317 4,507,212
Adjusted Net Tax Capacity 128,452,728$ 136,082,956$ 141,311,302$ 145,322,698$ 155,998,083$
Tax Levies:
General Fund 28,493,077$ 30,009,121$ 32,021,243$ 33,986,471$ 36,708,036$
Arts and Culture Fund 20,000 20,000 20,000 20,000 -
Equipment 2,567,000 2,630,000 2,830,000 4,130,000 5,190,000
Debt Service 4,579,700 4,611,900 4,596,300 3,651,400 3,232,000
HRA Operating 125,000 160,000 192,000 230,400 237,300
Total Certified Tax Levies 35,784,777 37,431,021 39,659,543 42,018,271 45,367,336
Referendum Market Value Levy - - - - -
Total Levy 35,784,777$ 37,431,021$ 39,659,543$ 42,018,271$ 45,367,336$
Tax Capacity Rate:
General Fund Revenue 24.187% 23.992% 24.690% 26.264% 27.657%
Bonds and Interest 3.564% 3.388% 3.255% 2.515% 2.133%
HRA 0.098% 0.119% 0.137% 0.163% 0.157%
Total Tax Capacity Rate 27.849% 27.499% 28.082% 28.942% 29.947%
Market Value Rate 0.00000% 0.00000% 0.00000% 0.00000% 0.00000%
CITY OF EDINA, MINNESOTA
COMBINING SCHEDULE OF BONDED INDEBTEDNESS
DECEMBER 31, 2022
(105)
Final
Interest Maturity Original
Rates Date Date Issue Redeemed
General Obligation Bonds:
GO Capital Improvement Plan, Series 2013A -
Refunding 3.00 - 3.50 % 10/10/13 02/01/30 5,710,000$ 2,380,000$
GO Refunding, Series 2016A 2.00 - 3.00 07/06/16 02/01/28 3,635,000 1,195,000
GO Refunding, Series 2017C 2.05 - 4.00 12/14/17 02/01/29 8,955,000 2,055,000
GO Equipment Certificate, Series 2019A 5.00 06/13/19 02/01/29 2,805,000 255,000
GO Refunding, Series 2021B 5.00 12/16/21 02/01/30 2,515,000 -
GO CIP Bonds, Series 2022B 2.00 08/05/22 02/01/25 17,000,000 -
Total General Obligation Bonds 40,620,000 5,885,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 2,050,000
GO Permanent Improvement Revolving
Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 2,590,000
GO Permanent Improvement Revolving
Series 2013A 3.00 - 3.50 10/10/13 02/01/30 2,555,000 890,000
GO Permanent Improvement Revolving
Series 2015A 2.00 - 4.00 07/09/15 02/01/32 6,545,000 1,470,000
GO Permanent Improvement Revolving
Series 2015A - Parking 2.00 - 4.00 07/09/15 02/01/36 2,495,000 490,000
GO Permanent Improvement Revolving
Series 2016A 2.00 - 3.00 07/06/16 02/01/33 3,940,000 665,000
GO Permanent Improvement Revolving
Series 2017A 3.00 - 4.00 06/29/17 02/01/34 1,995,000 205,000
GO Permanent Improvement Revolving
Series 2018A 3.00 - 3.125 06/27/18 02/01/35 2,210,000 115,000
GO Permanent Improvement Revolving
Series 2019A 3.00 - 5.00 06/13/19 02/01/36 2,195,000 -
GO Permanent Improvement Revolving
Series 2020A 2.00-4.00 06/25/20 02/01/37 390,000 -
GO Permanent Improvement Revolving
Series 2020B - Refunding 1.09 12/30/20 02/01/29 1,601,000 96,000
GO Permanent Improvement Revolving
Series 2021A 2.00 - 4.00 06/24/21 02/01/38 5,480,000 -
GO Permanent Improvement Revolving
Series 2021B - Refunding 5.00 12/16/21 02/01/30 1,280,000 -
GO Permanent Improvement Revolving
Series 2022A 5.00 07/14/22 02/01/39 2,145,000 -
Total PIR Bonds 38,456,000 8,571,000
Tax Increment Financing Bonds"
TIF, Series 2021A 2.00 - 4.00 06/24/21 02/04/43 7,545,000 -
Public Project Revenue Bonds:
HRA Public Project Revenue, Series 2014A 2.00 - 3.625 07/15/14 02/01/35 16,155,000 3,915,000
HRA Public Project Revenue, Series 2015A -
Refunding 2.50 - 3.00 07/09/15 05/01/26 3,490,000 1,760,000
Total Public Project Revenue Bonds 19,645,000 5,675,000
Minnesota State Aid Street Bonds
MSA, Series 2022A 5.00 07/14/22 02/01/38 10,465,000 -
Revenue Bonds:
Recreational Facility Bonds, Series 2012C 2.00 - 3.00 11/15/12 02/01/33 2,100,000 195,000
Recreational Facility Bonds, Series 2013B 3.00 - 3.45 10/10/13 02/01/29 1,125,000 460,000
Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 2,140,000 620,000
Recreational Facility Bonds, Series 2017B 3.00 - 4.00 06/29/17 02/01/33 7,425,000 1,340,000
Recreational Facility Bonds, Series 2017D -
Refunding 2.00 12/20/17 02/01/30 1,640,000 436,000
Recreational Facility Bonds, Series 2021C -
Refunding 2.00 - 3.00 12/16/21 02/01/33 2,210,000 -
Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 9,975,000
Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 3,850,000
Utility Revenue Bonds, Series 2015A 2.00 - 4.00 07/09/15 02/01/25 5,235,000 3,005,000
Utility Revenue Bonds, Series 2016A 2.00 - 3.00 07/06/16 02/01/27 8,775,000 3,215,000
Utility Revenue Bonds, Series 2017A 3.00 - 4.00 06/29/17 02/01/28 6,595,000 1,715,000
Utility Revenue Bonds, Series 2018A 3.00 - 3.125 06/27/18 02/01/29 3,305,000 575,000
Utility Revenue Bonds, Series 2019A 5.00 06/13/19 02/01/30 5,815,000 465,000
Utility Revenue Bonds, Series 2020A 2.00-4.00 06/25/20 02/01/31 4,830,000 -
Utility Revenue Bonds, Series 2020B - Refunding 1.09 12/30/20 02/01/23 1,414,000 350,000
Utility Revenue Bonds, Series 2022A 5.00 07/14/22 02/01/38 13,695,000 -
Total Public Project Revenue Bonds 83,214,000 26,201,000
Total - Bonded indebtedness 199,945,000$ 46,332,000$
Prior Years
CITY OF EDINA, MINNESOTA
COMBINING SCHEDULE OF BONDED INDEBTEDNESS (CONTINUED)
DECEMBER 31, 2022
(106)
Principal Interest Interest
Outstanding Payable Due Due Payable
12/31/2021 Issued Payments 12/31/2022 In 2023 In 2023 to Maturity
3,330,000$ -$ 3,330,000$ -$ -$ -$ -$
2,440,000 - 320,000 2,120,000 330,000 48,750 158,725
6,900,000 - 755,000 6,145,000 785,000 178,150 608,603
2,550,000 - 265,000 2,285,000 280,000 107,250 422,125
2,515,000 - - 2,515,000 85,000 123,625 606,875
- 17,000,000 - 17,000,000 - 317,333 827,333
17,735,000 17,000,000 4,670,000 30,065,000 1,480,000 775,108 2,623,661
255,000 - 255,000 - - - -
730,000 - 360,000 370,000 370,000 5,550 5,550
1,665,000 - 1,665,000 - - - -
5,075,000 - 385,000 4,690,000 400,000 149,875 820,413
2,005,000 - 105,000 1,900,000 110,000 63,850 503,700
3,275,000 - 235,000 3,040,000 245,000 78,875 487,575
1,790,000 - 110,000 1,680,000 115,000 53,000 331,200
2,095,000 - 120,000 1,975,000 125,000 61,919 430,153
2,195,000 - 105,000 2,090,000 110,000 80,850 570,450
390,000 - - 390,000 20,000 10,100 71,550
1,505,000 - 195,000 1,310,000 197,000 13,745 50,423
5,480,000 - - 5,480,000 - - -
1,280,000 - - 1,280,000 125,000 60,875 273,500
- 2,145,000 - 2,145,000 - 112,315 1,120,690
27,740,000 2,145,000 3,535,000 26,350,000 1,817,000 690,954 4,665,204
7,545,000 - - 7,545,000 250,000 217,250 2,218,675
12,240,000 - 715,000 11,525,000 735,000 366,694 2,721,222
1,730,000 - 325,000 1,405,000 335,000 33,500 75,113
13,970,000 - 1,040,000 12,930,000 1,070,000 400,194 2,796,335
- 10,465,000 - 10,465,000 - 547,959 4,944,084
1,905,000 - 1,905,000 - - - -
665,000 - 665,000 - - - -
1,520,000 - 130,000 1,390,000 135,000 40,319 201,466
6,085,000 - 450,000 5,635,000 470,000 194,700 1,070,850
1,204,000 - 131,000 1,073,000 134,000 20,790 87,850
2,210,000 - - 2,210,000 200,000 58,300 299,250
1,255,000 - 1,255,000 - - - -
1,830,000 - 595,000 1,235,000 605,000 27,975 37,425
2,230,000 - 525,000 1,705,000 550,000 51,300 89,150
5,560,000 - 865,000 4,695,000 895,000 105,888 287,844
4,880,000 - 620,000 4,260,000 645,000 142,200 453,750
2,730,000 - 300,000 2,430,000 315,000 78,525 301,575
5,350,000 - 485,000 4,865,000 505,000 230,625 1,029,000
4,830,000 - 405,000 4,425,000 420,000 593,650 135,900
1,064,000 - 707,000 357,000 357,000 1,946 1,946
- 13,695,000 - 13,695,000 - 717,085 6,336,460
43,318,000 13,695,000 9,038,000 47,975,000 5,231,000 2,263,303 10,332,466
110,308,000$ 43,305,000$ 18,283,000$ 135,330,000$ 9,848,000$ 4,894,768$ 27,580,425$
2022
CITY OF EDINA, MINNESOTA
SCHEDULE OF BALANCE SHEET ACCOUNTS
TAX INCREMENT FINANCING DISTRICTS
DECEMBER 31, 2022
(107)
Pentagon 50th and 44th & West 76th Amundson
Centennial Valley View Southdale 2 Park Grandview 2 66th West France 2 France Street Avenue Eden / Wilson Total TIF
No. 1203 No. 1207 No. 1208 No. 1211 No. 1212 No. 1214 No. 1215 No. 1216 No. 1217 No. 1219 No. 1218 Districts
ASSETS
Cash and Investments 2,060,486$ -$ 5,266,196$ 675,971$ 3,219,960$ 23,136$ 336,500$ 7,162$ -$ 21,856$ 447,110$ 11,589,411$
Accrued Interest 16,761 - 80,631 6,789 15,370 174 1,134 145 - 38 - 121,004
Loans Receivable - - 5,669,809 - - - - - - - - 5,669,809
Due from Other Districts 5,150,000 - 249,037 - - - - - - - - 5,399,037
Total Assets 7,227,247$ -$ 11,265,673$ 682,760$ 3,235,330$ 23,310$ 337,634$ 7,307$ -$ 21,894$ 447,110$ 22,779,261$
LIABILITIES
Accounts Payable 5,794$ -$ 726$ 93,077$ 29,385$ -$ 273,277$ -$ 518$ -$ 81,073$ 402,777$
Salaries Payable 61 - 1,690 1,153 577 - 39 538 - - - 4,058
Due to Other Districts - - - - 500,000 249,037 4,150,000 - - - 500,000 4,899,037
Due to Other Governments - - 71,705 1,659 1,718 585 1,707 984 - - - 78,358
Unearned Revenue 13,000 - - - - - - - - - - 13,000
Total Liabilities 18,855 - 74,121 95,889 531,680 249,622 4,425,023 1,522 518 - 581,073 5,397,230
FUND BALANCE
Restricted 7,208,392 - 11,191,552 586,871 2,703,650 (226,312) (4,087,389) 5,785 (518) 21,894 (133,963) 17,382,031
Total Liabilities and
Fund Balance 7,227,247$ -$ 11,265,673$ 682,760$ 3,235,330$ 23,310$ 337,634$ 7,307$ -$ 21,894$ 447,110$ 22,779,261$
CITY OF EDINA, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
TAX INCREMENT FINANCING DISTRICTS
YEAR ENDED DECEMBER 31, 2022
(108)
Total TaxCentennial Valley View Southdale 2 Pentagon Park Grandview 2 66th West 50th and France 44th & France West 76th Street Amundson Eden / Wilson Increment
District District District District District District France 2 District District District Avenue District Financing
No. 1203 No. 1207 No. 1208 No. 1211 No. 1211 No. 1214 No. 1215 No. 1216 No. 1217 No. 1219 No. 1218 Districts
REVENUESTax Increment Collections -$ -$ (256,600)$ 534,592$ 576,949$ 15,963$ 607,283$ 219,440$ -$ 22,616$ -$ 1,697,627$ Investment Income (71,487) - (411,314) (32,084) (32,044) (906) (4,536) (585) - (188) - (552,956)
Total Revenues (71,487) - (667,914) 502,508 544,905 15,057 602,747 218,855 - 22,428 - 1,144,671
EXPENDITURESCurrent:
General Government 47,372 - 3,891,946 416,761 54,598 1,659 568,795 227,956 - - 1,549 5,209,087
Capital Outlay:
General Government 7,246 - - - 3,795,925 - - - - - 132,414 3,803,171
Total Expenditures 54,618 - 3,891,946 416,761 3,850,523 1,659 568,795 227,956 - - 133,963 9,012,258
REVENUES OVER (UNDER)
EXPENDITURES (126,105) - (4,559,860) 85,747 (3,305,618) 13,398 33,952 (9,101) - 22,428 (133,963) (7,867,587)
OTHER FINANCING SOURCES (USES)
Transfers Out - (342,892) (8,465,062) (700,000) - - - - - - - (9,507,954)
NET INCREASE (DECREASE)
IN FUND BALANCE (126,105) (342,892) (13,024,922) (614,253) (3,305,618) 13,398 33,952 (9,101) - 22,428 (133,963) (17,375,541)
Fund Balance - January 1 7,334,497 342,892 24,216,474 1,201,124 6,009,268 (239,710) (4,121,341) 14,886 (518) (534) - 34,757,572
FUND BALANCE - DECEMBER 31 7,208,392$ -$ 11,191,552$ 586,871$ 2,703,650$ (226,312)$ (4,087,389)$ 5,785$ (518)$ 21,894$ (133,963)$ 17,382,031$
STATISTICAL SECTION
This part of the City’s annual comprehensive financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health.
Contents Page
Financial Trends 109
These schedules contain trend information to help the reader understand how the
City’s financial performance and well-being have changed over time.
Revenue Capacity 117
These schedules contain information to help the reader assess the City’s most
significant local revenue source, the property tax.
Debt Capacity 121
These schedules contain information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional debt
in the future.
Demographic and Economic Information 126
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information 128
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the services the
City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive
financial reports for the relevant year.
(This page left blank intentionally.)
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(109)
2013 2014 2015a 2016
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets 83,842,970$ 85,708,114$ 85,838,618$ 93,247,973$
Restricted 20,289,579 18,268,724 16,925,171 20,892,680
Unrestricted 33,242,317 31,316,605 21,957,830 22,146,168
Total Governmental
Activities Net Position 137,374,866$ 135,293,443$ 124,721,619$ 136,286,821$
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets 66,126,387$ 75,803,672$ 83,395,794$ 85,158,869$
Restricted 611,377 619,295 793,664 804,393
Unrestricted 16,867,459 21,176,026 16,405,405 17,300,872
Total Business-Type
Activities Net Position 83,605,223$ 97,598,993$ 100,594,863$ 103,264,134$
PRIMARY GOVERNMENT
Net Investment in Capital Assets 149,969,357$ 161,511,786$ 169,234,412$ 178,406,842$
Restricted 20,900,956 18,888,019 17,718,835 21,697,073
Unrestricted 50,109,776 52,492,631 38,363,235 39,447,040
Total Primary Government
Net Position 220,980,089$ 232,892,436$ 225,316,482$ 239,550,955$
a The City implemented GASB 68 in fiscal year 2015. Prior year information has not been restated as a result
of this change in accounting principle.
b The City implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result
of this change in accounting principle.
Fiscal Year
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(110)
2017 2018b 2019 2020 2021 2022
96,149,011$ 107,133,225$ 110,670,335$ 117,052,475$ 116,754,295$ 102,453,359$
22,840,869 25,017,586 36,999,647 60,063,244 76,262,266 70,035,114
26,412,441 31,277,308 27,680,337 16,475,796 15,308,966 29,841,435
145,402,321$ 163,428,119$ 175,350,319$ 193,591,515$ 208,325,527$ 202,329,908$
82,338,560$ 81,980,815$ 80,452,583$ 81,135,647$ 86,975,121$ 90,405,666$
1,338,276 1,360,336 1,360,336 1,268,479 1,225,093 -
22,443,806 27,285,949 32,045,171 33,086,023 32,253,873 43,289,552
106,120,642$ 110,627,100$ 113,858,090$ 115,490,149$ 120,454,087$ 133,695,218$
178,487,571$ 189,114,040$ 191,122,918$ 198,188,122$ 203,729,416$ 192,859,025$
24,179,145 26,377,922 38,359,983 61,331,723 77,487,359 70,035,114
48,856,247 58,563,257 59,725,508 49,561,819 7,562,839 73,130,987
251,522,963$ 274,055,219$ 289,208,409$ 309,081,664$ 288,779,614$ 336,025,126$
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(111)
2013 2014a 2015b 2016
EXPENSES
Governmental Activities:General Government 8,256,261$ 8,522,319$ 8,518,236$ 9,587,567$ Public Safety 17,117,693 18,145,498 19,507,770 20,243,209 Public Works 11,502,250 15,553,852 15,284,777 19,444,472 Parks 6,132,709 3,330,781 3,385,367 3,822,716 Interest on Long-Term Debt 2,024,749 1,989,863 2,180,678 2,133,474 Total Governmental Activities Expenses 45,033,662 47,542,313 48,876,828 55,231,438 Business-Type Activities:Water 13,748,186 14,207,197 14,963,304 16,780,474 Sewer - - - -
Stormwater - - - -
Recycling - - - -
Liquor 12,261,413 12,393,218 11,818,602 12,130,254
Aquatic Center 822,932 827,485 872,960 915,560
Golf Course 3,199,815 3,342,544 3,409,343 3,041,169
Arena 2,272,510 2,375,173 2,642,097 2,842,660
Community Activity Centers 2,967,115 2,975,782 3,436,325 3,853,091
Total Business-Type Activities Expenses 35,271,971 36,121,399 37,142,631 39,563,208
Total Primary Government Expenses 80,305,633$ 83,663,712$ 86,019,459$ 94,794,646$
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
General Government 1,259,908$ 1,529,555$ 1,322,430$ 1,453,009$
Public Safety 7,410,755 8,102,352 8,683,465 8,996,046
Other Activities 846,999 960,261 1,158,207 1,289,770 Operating Grants and Contributions 2,283,007 1,578,538 3,122,178 2,751,495 Capital Grants and Contributions 6,372,735 8,244,695 10,044,077 15,252,861 Total Governmental Activities Program Revenues 18,173,404 20,415,401 24,330,357 29,743,181 Business-Type Activities:Charges for Services:Water 17,831,225 17,550,802 19,335,443 19,505,905 Sewer - - - - Stormwater - - - - Recycling - - - - Liquor 13,711,557 13,515,168 12,462,387 12,937,092
Aquatic Center 928,055 918,412 971,936 956,068
Golf Course 2,711,743 3,229,348 2,857,190 2,809,702
Arena 1,942,971 2,092,567 2,316,853 2,314,892
Community Activity Centers 2,625,633 2,583,257 3,119,789 3,190,775
Operating Grants and Contributions 516,242 428,416 595,141 445,464
Capital Grants and Contributions - - - -
Total Business-Type Activities Program
Revenues 40,267,426 40,317,970 41,658,739 42,159,898
Total Primary Government Program
Revenues 58,440,830$ 60,733,371$ 65,989,096$ 71,903,079$
NET (EXPENSE) REVENUE
Governmental Activities (26,860,258)$ (27,126,912)$ (24,546,471)$ (25,488,257)$
Business-Type Activities 4,995,455 4,196,571 4,516,108 2,596,690
Total Primary Government Net Expense (21,864,803)$ (22,930,341)$ (20,030,363)$ (22,891,567)$
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION
Governmental Activities:
Property Taxes 26,894,161$ 27,062,224$ 29,632,072$ 31,396,421$
Tax Increment Collections 3,981,938 5,052,705 1,792,896 2,779,097
Franchise Taxes 1,891,967 2,055,396 2,089,038 2,346,423 Lodging Taxes - 11,301 22,716 22,624 Unrestricted Investment Earnings (96,390) 440,051 195,620 344,277 Gain on Disposal of Capital Assets 16,654 29,037 41,900 65,044 Insurance Recovery 816,654 - - - Transfers 133,907 (9,605,225) (2,230,966) 99,573 Total Governmental Activities 33,638,891 25,045,489 31,543,276 37,053,459 Business-Type Activities:Unrestricted Investment Earnings (77,848) 191,974 91,907 136,208 Gain (Loss) on Disposal of Capital Assets 17,587 - 39,427 35,946 Transfers (133,907) 9,605,225 2,230,966 (99,573) Total Business-Type Activities (194,168) 9,797,199 2,362,300 72,581
Total Primary Government 33,444,723$ 34,842,688$ 33,905,576$ 37,126,040$
CHANGE IN NET POSITION
Governmental Activities 6,778,633$ (2,081,423)$ 6,996,805$ 11,565,202$
Business-Type Activities 4,801,287 13,993,770 6,878,408 2,669,271
Total Primary Government 11,579,920$ 11,912,347$ 13,875,213$ 14,234,473$
a The City completed a major departmental reorganization in 2014, moving parks maintenance activities from parks to public works. Prior year
b information has not been modified as a result of this change.
The City implemented GASB 68 in fiscal year 2015. Prior year information has not been restated as a result of this change in accounting principle.
c The City completed a major departmental reorganization in 2018, moving parks maintenance activities from public works to parks. The City also
d implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of either change.
The City broke out the various functions within the utilities fund for the first time in 2020. Prior year information has not been restated.
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(112)
2017 2018c 2019 2020d 2021 2022
9,164,272$ 10,964,266$ 11,252,538$ 11,698,533$ 14,844,785$ 19,199,880$ 21,815,101 20,971,184 27,496,563 27,058,719 24,288,956 29,290,638 17,750,505 14,170,463 10,979,180 16,117,060 11,497,445 23,018,094 4,222,431 7,235,405 7,554,919 6,798,866 7,365,756 7,928,925 1,996,354 1,726,901 1,999,318 1,561,462 1,282,299 1,709,865
54,948,663 55,068,219 59,282,518 63,234,640 59,279,241 81,147,402
17,361,659 18,045,516 19,303,212 9,592,913 9,094,274 7,449,657
- - - 7,641,660 7,690,708 8,612,892
- - - 3,424,049 3,146,475 2,735,091
- - - 1,392,003 1,956,546 1,838,148
12,007,885 11,995,159 11,970,986 11,500,971 13,435,305 13,725,070
1,015,328 996,671 979,376 386,026 1,052,346 1,218,383
3,469,121 2,464,563 4,009,097 4,257,484 4,822,338 5,282,761
2,961,787 2,996,844 2,982,674 2,876,897 2,882,067 3,214,462
4,095,309 4,096,452 4,286,773 3,412,784 3,231,622 4,537,612
40,911,089 40,595,205 43,532,118 44,484,787 47,311,681 48,614,076
95,859,752$ 95,663,424$ 102,814,636$ 107,719,427$ 106,590,922$ 129,761,478$
1,142,120$ 2,395,535$ 1,204,947$ 4,172,729$ 2,207,889$ 5,873,349$
9,627,122 9,978,816 9,747,031 10,152,772 9,970,031 11,909,539
1,288,452 1,202,732 1,265,918 1,007,903 1,351,458 1,670,253
2,194,336 4,028,247 4,271,243 7,626,236 2,721,724 6,792,587
9,775,184 6,695,172 6,625,040 7,318,687 4,030,108 4,943,744
24,027,214 24,300,502 23,114,179 30,278,327 20,281,210 31,189,472
21,361,972 22,697,468 21,875,655 9,236,665 10,302,974 12,717,867
- - - 10,622,411 10,732,193 12,706,062
- - - 4,773,432 5,207,295 5,389,214
- - - 1,148,338 1,447,226 1,485,925
12,991,764 13,401,754 13,094,407 12,117,414 14,280,055 14,427,474
962,857 997,727 996,778 - 1,071,692 1,144,569
1,254,412 1,396,173 3,395,815 3,968,529 5,290,109 6,080,771
2,508,192 2,629,945 2,516,629 1,638,011 2,347,678 2,551,853
3,348,628 3,303,278 3,240,000 1,499,060 2,106,088 2,979,493 179,086 545,682 44,953 47,780 404,419 271,640 904,201 - 692,281 396,103 - -
43,511,112 44,972,027 45,856,518 45,447,743 53,189,729 59,754,868
67,538,326$ 69,272,529$ 68,970,697$ 75,726,070$ 73,470,939$ 90,944,340$
(30,921,449)$ (30,767,717)$ (36,168,339)$ (32,956,313)$ (38,998,031)$ (49,957,930)$ 2,600,023 4,376,822 2,324,400 962,956 5,878,048 11,140,792
(28,321,426)$ (26,390,895)$ (33,843,939)$ (31,993,357)$ (33,119,983)$ (38,817,138)$
33,665,029$ 35,616,432$ 37,133,269$ 39,545,279$ 41,826,967$ 45,074,974$
3,422,898 4,997,706 5,447,108 6,452,819 8,295,756 1,720,243
2,408,884 2,559,443 2,881,726 3,071,392 3,090,322 3,071,551
21,006 25,298 24,119 8,313 17,214 25,751
514,073 901,405 2,037,306 1,835,870 (372,080) (2,903,247)
- 5,032,815 408,659 - 101,404 53,576
- - - - - -
5,059 305,428 158,352 283,836 772,460 (3,080,537)
40,036,949 49,438,527 48,090,539 51,197,509 53,732,043 43,962,311
254,990 481,754 1,064,942 945,580 (141,650) (980,198) 6,554 - - 7,359 - - (5,059) (305,428) (158,352) (283,836) (772,460) 3,080,537 256,485 176,326 906,590 669,103 (914,110) 2,100,339
40,293,434$ 49,614,853$ 48,997,129$ 51,866,612$ 52,817,933$ 46,062,650$
9,115,500$ 18,670,810$ 11,922,200$ 18,241,196$ 14,734,012$ (5,995,619)$
2,856,508 4,553,148 3,230,990 1,632,059 4,963,938 13,241,131
11,972,008$ 23,223,958$ 15,153,190$ 19,873,255$ 19,697,950$ 7,245,512$
Fiscal Year
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(113)
2013 2014
a 2015 2016
a
GENERAL FUND
Nonspendable 13,322$ 240,291$ 529,513$ 27,643$
Restricted 185,395 757,673 417,673 927,673
Assigned 1,559,461 1,566,329 1,547,398 1,612,240
Unassigned 12,573,457 11,429,444 11,825,799 14,624,755
Total General Fund 14,331,635$ 13,993,737$ 14,320,383$ 17,192,311$
ALL OTHER GOVERNMENTAL
FUNDS
Nonspendable -$ -$ -$ -$
Restricted, Reported in:
Special Revenue Funds 13,040,516 9,719,309 9,405,757 12,673,995
Debt Service Funds 6,246,769 12,678,291 7,134,575 11,187,468
Construction Funds 3,318,947 6,598,832 551,132 209,510
Assigned, Reported in:
Capital Projects Funds 8,354,268 7,046,610 13,127,881 13,109,438
Unassigned, Reported in:
Special Revenue Funds - - - (190,845)
Total all Other Governmental
Funds 30,960,500$ 36,043,042$ 30,219,345$ 36,989,566$
a The substantial increase in other governmental funds restricted fund balance is due to unspent
bond proceeds related to the current refunding that took place on February 1 of the following year.
Fiscal Year
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(114)
2017a 2018 2019 2020 2021 2022
13,124$ -$ 28,403$ 28,403$ 85,083$ 80,509$
961,133 961,133 58,086 58,086 58,086 58,086
1,739,079 2,105,741 2,093,760 6,679,877 5,627,113 5,592,639
15,656,518 16,812,851 16,411,412 20,476,747 18,003,259 19,904,228
18,369,854$ 19,879,725$ 18,591,661$ 27,243,113$ 23,773,541$ 25,635,462$
-$ -$ -$ -$ 71,784$ 1,479$
14,453,556 14,755,259 18,653,029 26,862,127 42,538,152 37,788,867
17,000,806 7,871,858 8,341,996 9,727,306 11,178,492 6,702,038
78,702 30,072 - - - -
15,710,621 19,726,343 21,927,249 19,634,745 25,778,679 29,480,869
- - - (50,610) - -
47,243,685$ 42,383,532$ 48,922,274$ 56,173,568$ 79,567,107$ 73,973,253$
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(115)
2013 2014 2015 2016
REVENUES
General Property Taxes 26,891,756$ 26,988,493$ 29,535,270$ 31,354,023$
Tax Increment Collections 3,981,938 5,052,705 1,792,896 2,779,097
Franchise Taxes 1,891,967 2,055,396 2,089,038 2,346,423
Lodging Fees - 11,301 22,716 22,624
Special Assessments 4,884,510 4,606,010 4,132,128 5,276,194
License and Permits 4,150,512 4,583,183 4,907,364 5,268,519
Intergovernmental 2,509,166 3,961,509 6,093,966 5,775,114
Charges for Services 3,667,612 4,270,720 4,414,991 4,689,389
Fines and Forfeitures 1,109,710 1,163,907 1,195,271 1,016,817
Investment Income (96,390) 440,051 195,314 344,344
Rental of Property 518,862 546,874 416,522 514,955
Parkland Dedication - 757,278 800,000 1,250,000
Other Revenues 278,607 78,775 361,425 2,599,830
Total Revenues 49,788,250 54,516,202 55,956,901 63,237,329
EXPENDITURES
General Government 7,351,556 7,625,826 6,337,944 6,815,725
Public Safety 15,859,622 16,647,821 17,537,528 18,554,507
Public Works 7,018,614 10,201,335 10,578,472 10,474,008
Parks 3,915,568 1,341,884 1,416,858 1,529,384
Capital Outlay 10,690,207 19,883,144 19,912,565 16,787,575
Debt Service:
Principal 14,531,375 4,096,375 13,276,375 5,246,375
Interest and Other Charges 2,270,259 1,923,647 2,375,613 2,360,827
Total Expenditures 61,637,201 61,720,032 71,435,355 61,768,401
REVENUES OVER (UNDER)
EXPENDITURES (11,848,951) (7,203,830) (15,478,454) 1,468,928
OTHER FINANCING SOURCES (USES)
Utility Contributions from Other Funds - - - -
Transfers In 3,472,964 1,404,975 3,232,770 3,504,542
Transfers Out (3,339,057) (11,010,200) (6,472,066) (3,404,969)
Sale of Capital Assets 61,642 70,603 78,509 65,044
Insurance Recovery 816,654 - 167,167 -
Loans Issued - - - -
Bonds Issued 2,555,000 16,155,000 9,040,000 3,940,000
Refunding Bonds Issued 5,710,000 5,180,000 3,490,000 3,635,000
Premium on Bonds Issued 275,360 327,987 492,838 450,409
Discount on Bonds Issued (60,334) (179,891) (47,815) (16,805)
Payment to Refunding Escrow - - - -
Total Other Financing
Sources (Uses)9,492,229 11,948,474 9,981,403 8,173,221
NET CHANGE IN FUND BALANCES (2,356,722)$ 4,744,644$ (5,497,051)$ 9,642,149$
Debt Service as a Percentage of
Noncapital Expenditures 32.2% 13.7% 28.9% 16.2%
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(116)
2017 2018 2019 2020 2021 2022
33,696,550$ 35,613,883$ 37,093,074$ 39,509,239$ 41,796,463$ 45,096,245$
3,422,898 4,997,706 5,447,108 6,452,819 8,295,756 1,720,243
2,408,884 2,559,443 2,881,726 3,071,392 3,090,322 3,071,551
21,006 25,298 24,119 8,313 17,214 25,751
5,330,766 4,747,205 4,741,557 4,629,551 4,130,703 4,426,156
5,403,222 5,912,757 5,183,754 6,454,749 6,077,446 7,482,098
3,687,262 5,124,573 3,687,620 11,218,739 3,321,222 6,459,627
4,917,173 4,898,548 5,431,941 4,968,288 5,980,258 6,254,411
1,135,986 1,122,426 1,097,122 485,472 460,914 359,680
512,448 889,550 1,989,881 1,835,870 (372,080) (2,903,247)
459,099 632,011 487,797 479,148 491,579 711,100
33,460 - - - - -
761,281 990,277 600,905 3,069,269 704,558 4,737,252
61,790,035 67,513,677 68,666,604 82,182,849 73,994,355 77,440,867
7,065,729 8,630,290 8,973,194 8,577,452 12,236,821 17,968,839
19,233,386 20,323,076 21,701,254 25,612,596 25,694,255 26,526,855
11,524,896 8,682,928 8,998,768 8,843,557 10,718,078 11,502,009
1,695,397 5,202,962 5,453,778 4,878,372 5,917,562 6,471,305
11,053,212 19,752,836 18,558,023 13,056,078 12,203,492 29,567,796
5,496,375 5,523,369 5,778,476 5,865,000 8,326,000 9,247,829
2,359,551 2,099,594 1,923,526 2,007,730 1,892,346 2,048,560
58,428,546 70,215,055 71,387,019 68,840,785 76,988,554 103,333,193
3,361,489 (2,701,378) (2,720,415) 13,342,064 (2,994,199) (25,892,326)
- 37,978 115,494 - - -
5,130,405 5,464,771 6,738,864 6,260,386 8,408,356 3,823,898
(5,057,263) (5,139,771) (6,604,736) (5,976,550) (7,639,656) (3,515,998)
84,388 6,201,630 1,172,391 251,670 3,000,821 106,406
- - - - - -
- - 750,000 - - -
1,995,000 2,210,000 5,000,000 1,991,000 16,820,000 29,610,000
8,955,000 - - - - -
798,791 74,787 799,080 34,176 2,329,645 1,691,560
(51,148) (18,299) - - - -
(3,785,000) (9,480,000) - - - -
8,070,173 (648,904) 7,971,093 2,560,682 22,919,166 31,715,866
11,431,662$ (3,350,282)$ 5,250,678$ 15,902,746$ 19,924,967$ 5,823,540$
15.9% 14.6% 13.8% 13.2% 15.6% 15.2%
Fiscal Year
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE, AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(117)
City Tax City
Used Adjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
8,955,431$ 8,955,431$ 8,798,601$ 106,530$ 93,504$ 96,120$ 27.216% 0.00690% 2.921
9,065,550 9,065,550 8,911,695 108,069 93,607 96,156 27.920% 0.00695% 2.961
9,837,972 9,837,972 9,701,677 117,907 106,662 109,203 26.605% 0.00631% 2.953
10,420,339 10,420,339 10,296,342 125,664 112,491 115,128 27.137% 0.00550% 2.998
10,902,621 10,902,621 10,785,198 132,180 116,854 119,756 28.271% 0.00000% 3.105
11,655,318 11,655,318 11,547,520 141,934 125,242 128,453 27.849% 0.00000% 3.069
12,370,205 12,370,205 12,271,673 151,279 132,609 136,083 27.499% 0.00000% 3.025
12,879,164 12,879,164 12,785,798 157,910 137,611 141,311 28.082% 0.00000% 3.081
13,344,357 13,344,357 13,255,470 164,716 141,273 145,322 28.939% 0.00000% 3.151
13,796,381 13,796,381 13,713,197 169,928 151,491 155,998 29.947% 0.00000% 3.386
Source: Hennepin County Taxpayer Services.
a Property in the City is assessed annually. Assessed value is equal to market value, although taxable value may be different, as shown.
The City receives reports from Hennepin County showing total market value, but not separated by property classification.
b This value is estimated by the City Finance Department by taking City taxes as a rate of estimated market value (rate per $1,000 of
assessed value). The property tax system in Minnesota uses a tax capacity system whereby each parcel is assigned a tax capacity
based on taxable value and class. In Minnesota, local taxes are usually expressed as a percentage of this calculated tax capacity
(see column titled "City Tax Capacity Rate"). Therefore, this rate is only theoretical and shown for comparative purposes only.
2022
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2015
Fiscal Direct
2013
2014
2019
2018
2021
Year
2016
2017
2020
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
(118)
Total
Basic Debt HRA Total Tax Direct and
Rate Rate Rate Capacity RMV Hennepin Tax Cap. RMV Other Overlap
23.762% 3.454% 0.000% 27.216% 0.007% 49.461% 27.762% 0.217% 11.483% 115.922%
24.458% 3.462% 0.000% 27.920% 0.007% 49.959% 27.556% 0.223% 12.051% 117.486%
22.477% 4.128% 0.000% 26.605% 0.006% 46.398% 27.344% 0.215% 11.100% 111.447%
23.223% 3.914% 0.000% 27.137% 0.006% 45.356% 34.898% 0.201% 11.254% 118.645%
24.348% 3.841% 0.082% 28.271% 0.000% 44.087% 34.798% 0.188% 11.057% 118.213%
24.187% 3.564% 0.098% 27.849% 0.000% 42.808% 30.972% 0.222% 10.667% 112.296%
23.992% 3.388% 0.119% 27.499% 0.000% 41.861% 30.589% 0.210% 9.714% 109.663%
24.690% 3.255% 0.137% 28.082% 0.000% 41.084% 30.589% 0.219% 9.330% 109.085%
26.264% 2.515% 0.160% 28.939% 0.000% 38.210% 31.474% 0.211% 8.833% 107.456%
26.863% 2.073% 0.152% 29.088% 0.000% 38.535% 29.975% 0.219% 8.830% 106.428%
Source: Hennepin County Taxpayer Services.
RMV: Referendum Market Value
Geographic boundaries for overlapping district are not identical to the City's boundaries. City boundaries contain six different
school districts but only ISD #273 is shown here. Other districts include Mosquito Control, Met Council, Metro Transit,
Hennepin Parks, Park Museum and Regional Railroad Authority. In addition, there are two watershed districts in the City,
Nine Mile Creek and Minnehaha Creek, and rates for Nine Mile are included in Other. Total rates do not include RMV rates.
2021
2020
2019
City Rates
2022
Overlapping Rates
ISD #273 EdinaFiscal
Year
2018
2013
2014
2015
2016
2017
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(119)
Percentage Percentage
of Total of Total
Tax Capacity Rank Capacity Tax Capacity Rank Capacity
Centennial Lakes Office 3,265,320$ 1 1.92% DNA DNA DNA
Galleria Shopping Center 2,978,233 2 1.75% 1,593,450 2 1.50%
Southdale Shopping Center 2,758,724 3 1.62% 2,506,810 1 2.35%
Southdale Medical Building 1,573,521 4 0.93% 620,285 5 0.58%
Cedars of Edina 1,213,080 5 0.71% DNA DNA DNA
The Bower Residences 1,066,625 6 0.63% DNA DNA DNA
71 France Apartments 1,020,157 7 0.60% DNA DNA DNA
Centennial Lakes Plaza 955,602 8 0.56% DNA DNA DNA
Southdale Office Center 946,290 9 0.56% 701,274 4 0.66%
Onyx Apartments 907,650 10 0.53% DNA DNA DNA
Centennial Lakes Phase V DNA DNA DNA 580,176 6 0.54%
Centennial Lakes Phase IV DNA DNA DNA 568,939 7 0.53%
Centennial Lakes Retail DNA DNA DNA 715,026 3 0.67%
National Car DNA DNA DNA 508,794 8 0.48%
Target DNA DNA DNA 439,250 9 0.41%
Hellmuth & Johnson DNA DNA DNA 361,620 10 0.34%
Totals 16,685,202$ 7.90% 8,595,624$ 8.07%
Source: City of Edina Assessing Office
DNA: Data is not available
20132022
Taxpayer
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(120)
Total Collections in
Tax Percentage Subsequent Percentage
Levy Amount of Levy Years Amount of Levy
26,747,384$ 26,545,984$ 99.25% (201,500)$ 26,344,484$ 98.49%
27,454,872 27,326,092 99.53% (44,905) 27,281,187 99.37%
29,700,010 29,497,362 99.32% (80,678) 29,416,684 99.05%
31,799,123 31,383,415 98.69% 47,887 31,431,302 98.84%
33,822,369 33,645,085 99.48% (49,937) 33,595,148 99.33%
35,784,777 35,551,096 99.35% (35,145) 35,515,951 99.25%
37,431,021 37,104,274 99.13% 70,089 37,174,363 99.31%
39,659,543 39,392,703 99.33% 18,687 39,411,390 99.37%
42,018,271 41,704,258 99.25% 52,988 41,757,246 99.38%
45,367,336 45,005,400 99.20% - 45,005,400 99.20%
Source: Hennepin County Taxpayer Services.
2022
Collected within the
Fiscal Year of the Levy
2021
2020
2019
2018
2016
2015
2017
Total Collections to Date
Taxes
Payable
2013
2014
CITY OF EDINA, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(121)
General Public Tax Permanent EEEP Rec. Utility Total Percentage
Obligation Project Increment Improvement Revenue Notes Facility Revenue Primary of Personal Per
Debt Revenue Bonds Revolving Bonds Payable Bonds Bonds Government Income a Capita a
32,035$ 5,627$ -$ 18,889$ 62$ -$ 6,540$ 29,635$ 92,788$ 3.14% 1,885$
30,806 21,445 - 21,554 51 - 6,249 39,633 119,738 3.84% 2,382
27,225 21,300 - 24,776 40 - 8,055 32,575 113,971 3.53% 2,245
28,560 20,395 - 26,874 28 - 7,677 36,691 120,225 3.68% 2,321
31,748 19,485 - 26,772 17 - 16,946 38,661 133,629 3.75% 2,545
20,115 18,434 - 26,415 13 - 14,696 36,768 116,441 3.35% 2,216
21,211 17,495 - 26,323 - 750 12,423 39,230 117,432 3.16% 2,205
18,917 16,363 - 25,559 - 750 12,945 39,618 114,152 2.78% 2,134
19,087 14,071 8,293 29,502 - 750 14,241 31,733 117,677 3.04% 2,197
43,000 12,976 8,252 28,167 - 750 10,841 41,025 145,011 3.48% 2,707
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
All figures are presented net of related premiums, discounts, and adjustments if applicable.
a Population and personal income data from U.S. Census Bureau/Metropolitan Council found on page 123.
Governmental Activities
2022
2021
2020
2019
Business-Type Activities
Year
Fiscal
2018
2015
2016
2013
2014
2017
CITY OF EDINA, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(122)
General Obligation Less: Amounts Available Percentage of
Debt a in Debt Service Fund b Total Property Value c Per Capita d
31,390$ 6,247$ 25,143$ 0.28% 511$
30,200 12,678 17,522 0.19% 349
26,710 7,135 19,575 0.20% 386
27,935 11,187 16,748 0.16% 323
30,630 17,001 13,629 0.13% 260
19,155 7,872 11,283 0.10% 215
19,905 8,342 11,563 0.09% 217
18,917 9,727 9,190 0.07% 172
19,087 11,178 7,909 0.06% 148
43,000 6,702 36,298 0.26% 678
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
a Presented net of related premiums, discounts, and adjustments.
b This is the amount restricted for debt service principal payments.
c See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for
estimated property value data.
d Population from U.S. Census Bureau/Metropolitan Council found on page 123.
2022
2021
2020
2019
Year
Fiscal
2013
2018
2016
2015
2014
2017
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
DECEMBER 31, 2022
(123)
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 1,018,886,023$ 6.95% 70,812,579$
Hennepin Suburban Park District 47,650,901 9.64% 4,593,547
Hennepin Regional Rail Authority 85,464,798 6.95% 5,939,803
School Districts:
ISD No. 273 (Edina) 174,385,000 98.86% 172,397,011
ISD No. 270 (Hopkins) 151,301,118 7.76% 11,740,967
ISD No. 271 (Bloomington) 157,238,505 0.02% 31,448
ISD No. 272 (Eden Prairie) 89,222,670 1.02% 910,071
ISD No. 280 (Richfield) 126,560,752 31.31% 39,626,171
ISD No. 283 (St. Louis Park) 248,845,568 0.03% 74,654
Metro Council 83,059,397 3.78% 3,139,645
Total Overlapping Debt 2,182,614,732 309,265,896
City of Edina 92,395,077 100.00% 92,395,077
Total Overlapping and Direct Debt 2,275,009,809$ 401,660,973$
Ratio of Debt Per Capita (53,572 Population) 7,498$
Ratio of Debt to Estimated Market Valuation of $13,796,381,100 2.91%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(124)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Debt Limit 263,958$ 267,351$ 291,050$ 308,890$ 323,556$ 346,426$ 368,150$ 383,574$ 400,331$ 413,891$
Total Net Debt
Applicable
to Limit 37,030 51,760 48,000 48,325 50,115 37,595 37,265 33,970 31,705 53,460
Legal Debt
Margin 226,928$ 215,591$ 243,050$ 260,565$ 273,441$ 308,831$ 330,885$ 349,604$ 368,626$ 360,431$
Total Net Debt
Applicable to
the Limit as a
Percentage of
Debt Limit 14.03% 19.36% 16.49% 15.64% 15.49% 10.85% 10.12% 8.86% 7.92% 12.92%
Legal Debt Margin Calculation for Fiscal Year 2022
Market Value (After Fiscal Disparities)13,796,381,100$
Debt Limit (3% of Market Value)413,891,433
Debt Applicable to Limit:
General Obligation Bonds 40,530,000
Public Project Revenue Bonds 12,930,000
Total Debt Applicable to Limit 53,460,000
Legal Debt Margin 360,431,433$
Fiscal Year
CITY OF EDINA, MINNESOTA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(125)
Less: Operating Net Available
Revenue Expenses Revenue Principal Interest Total Coverage
Public Project Revenue Bonds (Annual Appropriation Lease Revenue)
2013 1,346,294$ -$ 1,346,294$ 6,225,000$ 589,734$ 6,814,734$ 0.20
2014 1,356,844 - 1,356,844 235,000 223,754 458,754 2.96
2015 2,521,840 - 2,521,840 3,760,000 729,879 4,489,879 0.56
2016 2,499,521 - 2,499,521 900,000 654,473 1,554,473 1.61
2017 2,496,500 - 2,496,500 905,000 633,527 1,538,527 1.62
2018 2,507,700 - 2,507,700 1,045,000 607,148 1,652,148 1.52
2019 2,510,900 - 2,510,900 1,080,000 574,566 1,654,566 1.52
2020 2,506,300 - 2,506,300 1,115,000 540,690 1,655,690 1.51
2021 1,554,400 - 1,554,400 1,145,000 521,504 1,666,504 0.93
2022 1,560,000 - 1,560,000 1,040,000 428,269 1,468,269 1.06
Tax Increment Bonds
2013 3,981,939 - 3,981,939 550,000 9,350 559,350 7.12
2014 5,052,705 - 5,052,705 - - - -
2015 1,792,896 - 1,792,896 - - - -
2016 2,779,097 - 2,779,097 - - - -
2017 3,422,898 - 3,422,898 - - - -
2018 4,997,706 - 4,997,706 - - - -
2019 5,447,108 - 5,447,108 - - - -
2020 6,452,819 - 6,452,819 - - - -
2021 8,295,756 - 8,295,756 - - - -
2022 1,720,243 - 1,720,243 - 245,092 245,092 7.02
Permanent Improvement Revolving Bonds (Special Assessment)
2013 2,837,227 - 2,837,227 5,745,000 567,551 6,312,551 0.45
2014 2,870,102 - 2,870,102 1,555,000 548,927 2,103,927 1.36
2015 3,732,374 - 3,732,374 6,015,000 503,029 6,518,029 0.57
2016 4,727,881 - 4,727,881 1,925,000 705,628 2,630,628 1.80
2017 4,746,414 - 4,746,414 2,105,000 745,783 2,850,783 1.66
2018 4,121,203 - 4,121,203 2,480,000 746,023 3,226,023 1.28
2019 4,097,625 - 4,097,625 2,630,000 745,697 3,375,697 1.21
2020 4,075,208 - 4,075,208 2,570,000 771,215 3,341,215 1.22
2021 2,338,866 - 2,338,866 1,961,000 699,572 2,660,572 0.88
2022 2,167,201 - 2,167,201 2,133,000 840,238 2,973,238 0.73
Utility Bond
2013 17,830,425 12,893,159 4,937,266 3,400,000 933,970 4,333,970 1.14
2014 17,548,883 13,443,940 4,104,943 3,670,000 884,075 4,554,075 0.90
2015 19,334,023 14,387,132 4,946,891 12,300,000 882,427 13,182,427 0.38
2016 19,472,645 16,222,211 3,250,434 4,925,000 814,238 5,739,238 0.57
2017 21,360,262 16,718,288 4,641,974 5,040,000 930,123 5,970,123 0.78
2018 22,757,745 17,411,983 5,345,762 4,980,000 1,049,101 6,029,101 0.89
2019 21,846,239 18,457,754 3,388,485 5,685,000 999,754 6,684,754 0.51
2020 25,731,887 21,401,340 4,330,547 4,580,000 1,169,779 5,749,779 0.75
2021 27,663,593 21,984,700 5,678,893 6,920,000 1,143,996 8,063,996 0.70
2022 32,297,449 19,942,083 12,355,366 6,112,000 939,616 7,051,616 1.75
Recreational Facility Bonds
2013 5,582,769 6,118,195 (535,426) 550,000 138,127 688,127 (0.78)
2014 6,239,445 6,358,030 (118,585) 290,000 176,197 466,197 (0.25)
2015 6,137,111 6,258,138 (121,027) 350,000 176,808 526,808 (0.23)
2016 6,080,529 6,593,312 (512,783) 375,000 231,285 606,285 (0.85)
2017 4,724,288 6,247,649 (1,523,361) 500,000 217,958 717,958 (2.12)
2018 5,019,374 6,069,584 (1,050,210) 2,197,000 494,192 2,691,192 (0.39)
2019 6,908,708 7,516,553 (607,845) 849,000 430,733 1,279,733 (0.47)
2020 5,585,853 7,213,408 (1,627,555) 876,000 404,703 1,280,703 (1.27)
2021 8,801,478 8,759,248 42,230 909,000 376,723 1,285,723 0.03
2022 9,740,702 9,505,749 234,953 992,000 353,691 1,345,691 0.17
Debt Service RequirementsFiscal
Year
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(126)
Estimated
Personal Per Capita High School
Income Personal Graduation Unemployment
Population (In thousands) Income Rate Rate
49,216 2,955,913$ 60,060$ 97.7% 3.98%
50,261 3,117,991 62,036 97.8% 3.10%
50,766 3,231,154 63,648 97.9% 2.82%
51,804 3,264,895 63,024 97.7% 3.08%
52,497 3,567,906 67,964 97.9% 2.83%
52,535 3,480,339 66,248 98.0% 2.26%
53,268 3,711,714 69,680 98.2% 2.63%
53,494 4,111,335 76,856 98.2% 5.10%
53,572 3,873,041 72,296 98.4% 2.50%
53,572 4,172,562 77,887 98.5% 2.10%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2021 is the most recent.
Personal income and per capita income estimates based on MN Department of Employment
and Economic Development Quarterly Census of Employment and Wages. 2021 is the most recent.
High school graduation rate data from U.S. Census Bureau for the City of Edina.
Unemployment rate data from State of Minnesota Department of Employment and Economic Development.
2022
2021
Fiscal
Year
2014
2013
2020
2019
2018
2015
2016
2017
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(127)
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
Edina Realty 2,304 1 9.09% 400 8 1.74%
Edina Public Schools ISD #273 2,000 2 7.89% 1,693 2 7.37%
Coldwell Banker Realty 1,870 3 7.38% DNA DNA DNA
Fairview Southdale Hospital 1,624 4 6.41% 2,613 1 11.38%
City of Edina 929 5 3.66% 735 4 3.20%
BI Worldwide 737 6 2.91% 1,000 3 4.35%
Dow Water & Process Solutions 600 7 2.37% DNA DNA DNA
Lund Food Holdings, Inc 500 8 1.97% 397 10 1.73%
Western National Insurance Company 430 9 1.70% DNA DNA DNA
Target 375 10 1.48% DNA DNA DNA
Regis Corporation DNA DNA DNA 600 5 2.61%
International Dairy Queen Inc. DNA DNA DNA 490 6 2.13%
Barr Engineering DNA DNA DNA 445 7 1.94%
FilmTec Corporation DNA DNA DNA 400 9 1.74%
Totals 5,195 44.85% 8,773 38.19%
Sources:
2022 data from the City, Axle Reference Solutions, written and telephone survey (May 2022),
and the Minnesota Department of Employment and Economic Development.
2013 data from previous CAFR.
DNA: Data is not available
20132022
Employer
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(128)
2013 b 2014 b 2015 2016 b 2017 b 2018 2019 2020 b 2021 2022
Administration
General Fund 5.85 4.85 4.85 5.00 5.00 5.00 5.00 7.00 7.00 8.00
Communications
General Fund 5.15 6.15 6.15 6.00 6.00 6.00 6.00 6.80 6.80 7.00
Internal Services - - - - - - - 0.20 0.20 -
Information Technology Services
Internal Services 5.00 5.00 5.00 5.00 5.00 6.00 6.00 7.00 7.00 9.00
Community Development
General Fund 10.85 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00
HRA Fund - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Engineering
General Fund 12.00 10.00 11.00 11.00 11.00 12.00 12.00 17.30 17.30 15.00
PACS Fund - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Utilities Fund - 1.00 1.00 1.00 1.00 1.00 1.00 1.35 1.35 1.00
CAS Fund - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Construction Fund 1.00 1.00 1.00 1.10 1.10 1.10 1.10 1.00 1.00 -
Internal Services - - - - - - - 4.35 5.35 8.00
Finance
General Fund 5.25 6.00 6.00 5.00 5.00 6.00 6.00 6.00 6.00 7.00
Utilities Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00
Liquor Fund 0.75 - - - - - - - - -
Fire Protection
General Fund 42.75 42.85 43.85 45.90 45.90 45.80 49.80 63.35 63.35 66.55
Utilities Fund 0.25 0.25 0.25 - - - - 1.65 1.65 1.45
Human Resources
General Fund 4.00 4.00 4.00 5.00 5.00 5.00 5.00 4.00 5.00 5.00
Internal Services - - - - - - - 1.00 1.00 1.00
Parks & Recreation
General Fund 24.40 23.65 23.65 25.05 25.05 25.30 25.30 24.65 24.65 24.00
Aquatic Center 0.55 0.55 0.55 0.60 0.60 0.70 0.70 0.70 0.70 0.33
Golf Course 12.00 12.00 12.00 8.05 8.05 9.00 9.00 11.00 11.18 12.15
Arena 5.00 5.00 5.00 4.85 4.85 6.25 6.25 5.95 6.03 6.58
Sports Dome - - - 0.15 0.15 1.00 1.00 1.05 1.08 0.53
Art Center 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.08 2.08
Edinborough Park 5.80 5.80 5.80 5.80 5.80 5.65 5.65 5.65 5.75 6.80
Centennial Lakes 5.00 5.00 5.00 5.00 5.00 5.05 5.05 5.00 5.03 5.03
Liquor Fund 9.00 9.00 9.00 9.00 9.00 9.00 9.00 8.50 9.50 9.50
Enterprise Funds - - - - - - - 0.50 - -
Police Protection
General Fund 70.65 72.50 70.50 72.55 72.55 76.55 76.55 77.00 78.00 78.00
Public Works
General Fund 30.00 26.70 26.70 25.40 25.40 23.30 23.30 19.15 19.15 24.00
Utilities Fund 13.75 15.20 15.20 16.85 16.85 18.65 18.65 19.05 20.05 15.00
Internal Services 8.50 11.00 11.00 10.25 10.25 10.20 10.20 6.60 6.60 7.00
Enterprise Funds - - - - - - - 0.20 0.20 -
Other - - - - - - - - - -
Total 280.50 284.50 284.50 286.55 286.55 296.55 300.55 324.00 330.00 337.00
Source: City of Edina 2022-2023 Budget
a Full-time employee counts do not include Council members, part-time, contract or seasonal employees. In a typical
year the City will employ an additional 700-800 people in these categories.
b The City completed departmental reorganizations that are reflected on this chart between years 2013-2014, 2016-2017,
and 2020. In some cases, data for years before the reorganization has been modified from what was originally
reported to improve comparisons.
Function
Budgeted Full-Time Employees for Fiscal Year a
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(129)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government
Total City Employees 1,040 1,093 1,077 1,155 1,067 1,136 1,174 953 1,021 1,099
Votes Cast a 3,480 24,049 9,370 31,986 11,440 30,774 10,990 36,088 14,881 29,250
Public Works
Asphalt Placed (Tons) 9,273 8,383 8,888 9,298 11,176 14,419 9,847 10,593 10,962 10,300
Concrete (cu. yds.) 560 396 670 897 708 868 963 816 435 455
Public Safety
Fire Calls 893 926 1,251 1,276 1,220 1,321 1,600 1,265 1,419 1,431
Medical Calls 3,803 3,982 3,818 4,063 4,508 4,572 4,727 4,288 5,337 5,811
Police Calls for Service d 45,624 49,053 50,735 61,325 71,738 62,981 60,975 47,833 48,757 46,191
Internal Services
Vehicle Fixes 3,493 3,277 2,923 2,721 2,478 2,336 1,910 1,780 1,555 1,048
Utilities
Daily Consumption b 6,652 6,489 6,308 6,047 5,950 6,101 5,394 5,785 6,705 6,587
Aquatic Center
Attendance 91,340 92,200 128,523 108,609 89,318 88,342 83,499 - 88,217 81,184
Golf Course
Total Rounds Played c 79,529 85,231 66,483 61,256 23,241 20,679 60,561 74,180 76,383 75,437
Source: Various City departments
N/A Data not available
a The City elections department runs general elections in even-numbered years and school district elections in odd-numbered years.
Number of votes cast tend to vary between even and odd-numbered years and based on presidential election cycles.
b Daily average of water pumped from city wells, measured in thousands of gallons.
c 27-hole golf course was closed and reconstructed into an 18-hole championship course from 2017-2018
d Changed from Crimes reported to provide full data of police service calls
Function
Fiscal Year
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(130)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Public Works
Miles of Streets 224 224 224 224 224 224 224 224 224 224
City Parking Ramps 4 4 4 4 4 4 4 4 4 4
Public Safety
Fire Stations 2 2 2 2 2 2 2 2 2 2
Parks and Recreation
City Parks 40 40 40 40 40 40 40 40 40 40
Acreage of Parks 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553
Park Buildings 27 27 27 27 27 27 27 27 27 27
Utilities
Wells 18 18 18 18 18 18 18 18 18 18
Watermain Miles 199 199 199 199 199 199 199 199 199 199
Sanitary Sewer Miles 186 186 186 186 186 186 186 186 186 186
Sewer Connections 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979
Arena
Ice Sheets 3 3 4 4 4 4 4 4 4 4
Source: Various City Departments
Function
Fiscal Year