HomeMy WebLinkAbout2024 Annual Comprehensive Financial ReportCity of Edina, Minnesota
Annual Comprehensive Financial Report
Fiscal Year Ended December 31, 2024
Prepared by:
Department of Finance
Pa Thao – Finance Director
Nelly Chick-Brewer – Assistant Finance Director
City of Edina
Table of Contents
Introductory Section
Elected Officials and Administration 1
Organizational Chart 3
Letter of Transmittal 5
Certificate of Achievement for Excellence in Financial Reporting 9
Financial Section
Independent Auditor's Report 11
Management's Discussion and Analysis 15
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 30
Statement of Activities 31
Fund Financial Statements
Balance Sheet – Governmental Funds 32
Reconciliation of the Balance Sheet to the Statement of Net Position
– Governmental Funds 33
Statement of Revenues, Expenditures, and Changes in Fund Balances
– Governmental Funds 34
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities – Governmental Funds 35
Statement of Net Position – Proprietary Funds 36
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds 37
Statement of Cash Flows – Proprietary Funds 38
Statement of Fiduciary Net Position – Custodial Funds 39
Statement of Changes in Fiduciary Net Position – Custodial Funds 39
Notes to Basic Financial Statements 42
Required Supplementary Information
Statement of Revenues, Expenditures, and Changes in Fund Balances
– Budget and Actual – General Fund 89
Schedule of Revenues, Expenditures, and Changes in Fund Balances
– Budget and Actual – Housing and Redevelopment Authority (HRA) Fund 93
Schedule of City's Proportionate Share of Net Pension Liability
– General Employees Retirement Fund 94
Schedule of City's Proportionate Share of Net Pension Liability
– Public Employees Police and Fire Retirement Fund 94
Schedule of City Contributions – General Employees Retirement Fund 95
Schedule of City Contributions – Public Employees Police and Fire
Retirement Fund 95
Notes to Required Supplementary Information 96
Supplementary Information
Nonmajor Governmental Funds – Special Revenue Funds 109
Combining Balance Sheet 110
City of Edina
Table of Contents
Supplementary Information (Continued)
Nonmajor Governmental Funds – Special Revenue Funds (Continued)
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 111
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Community Development Block Grant 112
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Police 113
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Braemar Memorial 114
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual – Pedestrian and Cyclist Safety 115
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Conservation and Sustainability 116
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Opioid Settlement 117
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Public Safety Fund 118
Major Governmental Funds 119
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Governmental Fund – Debt Service 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Governmental Fund – Construction Capital Projects 121
Nonmajor Proprietary Funds - Enterprise Funds 123
Combining Statement of Net Position 124
Combining Statement of Revenues, Expenses, and Changes in Net Position 125
Combining Statement of Cash Flows 126
Fiduciary Funds – Custodial Funds 127
Statement of Fiduciary Net Position 128
Statement of Changes in Fiduciary Net Position 128
Schedule of Balance Sheet Accounts – Tax Increment Financing Districts 129
Schedule of Revenues, Expenditures, and Changes in Fund Balances
– Tax Increment Financing Districts 130
Statistical Section (Unaudited) Table Page
Net Position by Component 1 134
Change in Net Position 2 135
Fund Balances of Governmental Funds 3 136
Changes in Fund Balances of Governmental Funds 4 137
Taxable and Estimated Market Values of Taxable Property 5 138
Property Tax Rates – Direct and Overlapping Governments 6 139
Principal Property Taxpayers 7 140
Property Tax Levies and Collations 8 141
Legal Debt Margin Information 9 142
Ratios of Outstanding Debt by Type 10 143
Direct and Overlapping Governmental Activities Debt 11 144
Legal Debt Margin Information 12 145
Pledged Revenue Coverage 13 146
Demographic and Economic Statistics 14 147
City of Edina
Table of Contents
Statistical Section (Unaudited) (Continued) Table Page
Principal Employers 15 148
Full-Time City Government Employees by Function 16 149
Operating Indicators by Function 17 150
Capital Asset Statistics by Function 18 151
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City of Edina
Elected Officials and Administration
December 31, 2024
Elected/Appointed Position Term Expires
James Hovland Mayor December 31, 2029
Carolyn Jackson Council Member December 31, 2029
James Pierce Council Member December 31, 2029
Kate Agnew Council Member December 31, 2026
Julie Risser Council Member December 31, 2026
Scott Neal City Manager Appointed
Pa Thao Finance Director/Treasurer Appointed
Sharon Allison City Clerk Appointed
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City of Edina
Organizational Chart
December 31, 2024
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May 30, 2025
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 31,2024.
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.
BerganKDV LTD, 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, 2024. 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 54,480. Currently, 98% of the City is developed with 60% of the land attributed to residential uses, 4% to roadways, and 21% 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
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resources within a department as they see fit. The City Manager may authorize transfers of budgeted amounts between departments.
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 $25,474,747 unassigned fund balance in the general fund. It is the policy of City that, to the extent possible, such excess fund will typically be transferred to the Construction Fund to support capital improvements. This amount is $3,129,427 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.
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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, 2023. This was the fourteenth 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,
Pa Thao, Finance Director
Nelly Chick-Brewer, Assistant Finance Director
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City of Edina
Certificate of Achievement for Excellence in Financial Reporting
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Independent Auditor's Report
City Council and Management
City of Edina
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, 2024, 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, 2024,
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.
Emphasis of Matter
The City has adopted new accounting guidance as required by the Governmental Accounting
Standards Board (GASB) Implementation Guide No. 2021-1, Implementation Guidance Update - 2021.
Our opinion is 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.
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.
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an 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:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of
the financial statements.
Conclude whether, in our judgment, there are conditions or events considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, which follows this report letter, and Required Supplementary
Information as listed in the Table of Contents be presented to supplement the basic financial
statements. Such information is the responsibility of management and, although not a part of the
basic financial statements, is required by GASB 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.
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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 accompanying
supplementary information identified in the Table of Contents is presented for purposes of additional
analysis and is 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 accompanying supplementary information is fairly stated,
in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic
financial statements and our 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 30,
2025, 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.
Minneapolis, Minnesota
May 30, 2025
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
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, 2024. 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
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 $387,770,809 (net position).
Of this amount, $63,867,459 (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.
The City's total net position increased by $32,854,047 from the prior year. Of that total,
$22,728,158 is the increase in Governmental Activities net position and $10,125,889 is the
increase in Business-Type Activities net position.
At the close of the 2024 fiscal year, the City's governmental funds reported combined ending
fund balances of $151,121,096, an increase of $46,538,814 from the prior year. The increase
can be attributed mostly to increases in the Housing and Redevelopment Authority fund of
$6,576,422, the construction fund of $19,426,788, the debt service fund of $17,630,227 and
the general fund of $3,858,332 from prior year.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$25,474,747, or 43% of total general fund expenditures.
The City's total bonded debt increased by $50,614,000 during the current fiscal year, from
$135,752,000 at the end of 2023 due to the debt issuance of General Obligation Bonds, Series
2024A in the amount of $30,735,000, Series 2024B in the amount of $27,720,000 & Series
2024C in the amount of 3,065,000, offset by scheduled principal bond payments.
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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government-Wide Financial Statements (Continued)
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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Governmental Funds (Continued)
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.
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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
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 $387,770,809 at the close of the most recent fiscal year.
The largest portion of the City's net position ($234,400,971 or 60%) reflects its investment in capital
assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Summary Statements of Net Position
2024 2023 2024 2023 2024 2023
Current and other assets 206,044,461$ 151,752,797$ 63,712,665$ 56,806,788$ 269,757,126$ 208,559,585$
Capital assets 228,852,218 202,604,946 157,273,833 153,992,619 386,126,051 356,597,565
Total assets 434,896,679 354,357,743 220,986,498 210,799,407 655,883,177 565,157,150
Deferred outflows of resources
OPEB plan deferments 2,089,913 1,452,367 194,145 153,888 2,284,058 1,606,255
Pension plan deferments 20,449,008 26,929,096 835,988 1,619,423 21,284,996 28,548,519
Total deferred outflows
of resources 22,538,921 28,381,463 1,030,133 1,773,311 23,569,054 30,154,774
Current liabilities
Long-term liabilities outstanding 147,001,883 117,150,065 54,998,335 56,367,049 202,000,218 173,517,114
Other liabilities 45,175,059 22,203,166 12,289,340 12,314,314 57,464,399 34,517,480
Total liabilities 192,176,942 139,353,231 67,287,675 68,681,363 259,464,617 208,034,594
Deferred inflows of resources
OPEB plan deferments 1,793,307 2,086,714 166,591 212,493 1,959,898 2,299,207
Pension plan deferments 26,347,538 25,893,706 2,438,183 1,680,569 28,785,721 27,574,275
Leases 1,471,186 2,487,086 - - 1,471,186 2,487,086
Total liabilities and
deferred inflows 29,612,031 30,467,506 2,604,774 1,893,062 32,216,805 32,360,568
Net Position
Net invested in capital assets 131,971,012 112,750,230 102,429,959 96,982,508 234,400,971 209,732,738
Restricted 88,258,611 67,750,386 1,243,768 1,245,001 89,502,379 68,995,387
Unrestricted 15,417,004 32,417,853 48,450,455 43,770,784 63,867,459 76,188,637
Total net position 235,646,627$ 212,918,469$ 152,124,182$ 141,998,293$ 387,770,809$ 354,916,762$
Governmental Activities Business-Type Activities Total
Governmental Activities
A portion of the City's net position ($89,502,379) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position
($63,867,459) 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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
There was a decrease of $12,321,178 in unrestricted net position. This was mainly due to acquisitions
of capital assets.
The decreases in deferred outflows of resources and 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 newly issued debt, partially offset by regular scheduled payments on the
City's outstanding bonds.
As shown below, the City's net position increased by $32,854,047 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
Changes in Net Position
2024 2023 2024 2023 2024 2023
Revenues
Program revenues
Charges for services 15,612,510$ 14,709,292$ 58,236,983$ 57,070,404$ 73,849,493$ 71,779,696$
Operating grants and contributions 5,653,563 6,926,971 225,531 428,035 5,879,094 7,355,006
Capital grants and contributions 10,997,515 4,673,918 - - 10,997,515 4,673,918
General revenues
Property taxes 53,412,154 49,210,670 - - 53,412,154 49,210,670
Other taxes 13,066,883 10,720,379 4,875 - 13,071,758 10,720,379
Gain on disposal of assets 394,009 124,585 52,607 28,362 446,616 152,947
Unrestricted investment earnings 3,949,750 5,324,618 1,830,869 2,142,983 5,780,619 7,467,601
Total revenues 103,086,384 91,690,433 60,350,865 59,669,784 163,437,249 151,360,217
Expenses
General government 19,817,993 19,505,673 - - 19,817,993 19,505,673
Public safety 32,565,377 32,790,034 - - 32,565,377 32,790,034
Public works 17,270,199 18,755,764 - - 17,270,199 18,755,764
Parks 9,035,898 8,354,807 - - 9,035,898 8,354,807
Interest on long-term debt 1,993,206 2,058,881 - - 1,993,206 2,058,881
Water - - 6,908,508 7,500,796 6,908,508 7,500,796
Sewer - - 9,258,115 9,155,586 9,258,115 9,155,586
Stormwater - - 4,597,085 4,031,428 4,597,085 4,031,428
Recycling - - 1,884,856 1,671,424 1,884,856 1,671,424
Liquor - - 12,182,004 12,890,487 12,182,004 12,890,487
Aquatic center - - 1,411,631 1,336,122 1,411,631 1,336,122
Golf course - - 5,664,944 5,889,718 5,664,944 5,889,718
Arena - - 3,374,912 3,522,909 3,374,912 3,522,909
Community activity centers - - 5,266,795 5,004,952 5,266,795 5,004,952
Total expenses 80,682,673 81,465,159 50,548,850 51,003,422 131,231,523 132,468,581
Increase in Net Position Before Transfers 22,403,711 10,225,274 9,802,015 8,666,362 32,205,726 18,891,636
Transfers 40,144 363,287 (40,144) (363,287) - -
Increase in net position 22,443,855 10,588,561 9,761,871 8,303,075 32,205,726 18,891,636
Net position - beginning, as previously stated 212,918,469 202,329,908 141,998,293 133,695,218 354,916,762 336,025,126
Change in accounting principle 284,303 - 364,018 - 648,321 -
Net position - beginning, as restated 213,202,772 202,329,908 142,362,311 133,695,218 355,565,083 336,025,126
Net position December 31 235,646,627$ 212,918,469$ 152,124,182$ 141,998,293$ 387,770,809$ 354,916,762$
TotalBusiness-Type ActivitiesGovernmental Activities
20
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
Governmental activities increased the City's net position by $22,728,158, Key elements of the
increase are as follows.
Property taxes increased by $4,201,484 as the result of an increased general operating levy
that provides funding to continue existing service levels.
Other taxes increased by $2,346,504 due to local sales tax.
Other capital grants and contributions increased by $6,323,597, in 2024.
Charges for services increased by $903,218 as a result of due to subrecipient agreement in
assessing as well as an increase in-service contracts for police department and ROW permit
from US Internet Corp project.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for
Services
15%Operating Grants
5%
Capital Grants
11%
Property Taxes
52%
Other Taxes13%
Gain on
Disposal of Assets
0%
Investment
Earnings
4%
Revenues by Source - Governmental
Activities
21
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
GeneralGovernment Public Safety Public Works Parks Interest onLong-TermDebt
Expenses and Program Revenues -
Governmental Activities
Expenses Revenue *
Business-Type Activities
Business-type activities increased net position by $10,125,889, accounting for 30% of the City's
growth in net position. Key elements of the current year increase are as follows:
The utility fund had income before contributions and transfers of $10,120,861 for 2024. This
additional equity is used to maintain and invest in the utility infrastructure according to the
City's CIP and utility rate study.
The liquor fund had income before contributions and transfers of $296,664 for 2024. This
income is used to subsidize operations at other enterprise facilities.
The golf course had an income before contributions and transfers of $511,715.
The other enterprise funds had a loss before contributions and transfers of $2,878,536 in
total. These enterprises had operating expenses that exceeded revenues.
22
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Business-Type Activities (Continued)
Charges for
services
97%
Operating
grants and
contributions
0%
Unrestricted
investment
earnings
3%
Revenues by Source - Business-Type Activities
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Expenses and Program Revenues - Business-
Type Activities
Expenses Revenue *
23
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
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 $151,121,096, an increase of $46,538,814 in comparison with the prior year.
Approximately 17% of this total amount ($25,378,993) constitutes unassigned fund balance. The
remainder of the fund balance is 1) restricted by external creditors, grantors, laws, or regulations
($110,924,271 or 2) assigned by internal constraints ($14,646,940), or 3) nonspendable in the form of
prepaid items ($170,892).
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 $25,474,747. As a measure of the general fund's
liquidity, unassigned fund balance represents 43% of total general fund expenditures.
The fund balance of the City's general fund increased by $3,858,332 during the current fiscal year.
Key factors related to this increase include:
Total general fund expenditures were below budget by $3,935,974, and revenues were
$2,517,571 over budget. Public safety expenditures were under budget by $1,658,247 as a
result of staff vacancies during the year. Public works expenditures were under budget by
$1,301,491 due to staff vacancies as well as less plowing hours anticipated. Park and
recreation expenditures came in under budget by $580,341 as a result of conservative
budgeting.
Charges for services revenue was over budget by $1,352,747 and investment income was over
budget by $845,116 as a result of conservative budgeting, offset by taxes and assessments
revenue which was $1,068,512 under budget due to delinquent balances.
The general fund transferred $530,659 of 2023 surplus primarily to the construction fund for
capital projects.
The Housing and Redevelopment Authority fund balance increased by $6,576,422 in the current fiscal
year due to the issuance of the series 2024C HIA bonds in the amount of $3,065,000 and other tax
increment financing revenues.
The debt service fund has a total fund balance of $24,354,318, all of which is restricted for the
payment of debt service. The net increase in fund balance during the current year in the debt
service fund was $17,630,227. Fund balance increased as the result of a $3,415,010 in General
Property Taxes, $996,125 in intergovernmental revenue, transfers in of $3,333,463 and new bond
issues and premium of $17,636,021 offset by $7,948,731 in debt service payments.
24
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Governmental Funds (Continued)
The construction fund balance increased by $19,426,788 in 2024. The increase was as a result of a
$6,837,370 in general property taxes, $6,537,828 in general sales tax, $4,538,805 in special
assessments, $1,000,147 in intergovernmental revenue, $2,018,772 in investment income,
$32,573,803 new bonds issues offset by $32,944,876 in construction expenditures.
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 $42,091,948. The
total growth in net position from current year operations was $8,374,578. Operating revenues in the
utilities fund increased by 5% while expenses increased by 5.3% in 2024. The revenue increase was
due to changes in rates and more water and sewer connection fees in 2024. Expenses increased
because of an increase in recycling services as well as wastewater fees. The City invested
$10,943,455 in utility fund capital assets during 2024, a 48% decrease from 2023.
Unrestricted net position of the liquor fund at the end of the year amounted to $707,647. The liquor
fund continues to transfer profits back into other City funds, including the Art Center, the Braemar
Arena, and the Centennial Lakes funds. The liquor fund made transfers totaling $1,000,000 to these
other funds in 2024. The transfers out were greater than operating income of $234,095 in 2024,
leading to the reduction of $698,420 in net position in the liquor fund in 2024.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $944,016.
Restricted net position of the aquatic center fund at the end of the year amounted to $1,243,768.
Unrestricted net position of the golf course fund at the end of the year amounted to $1,543,043, an
improvement of $568,717 from the prior year. Operating income for the golf course fund was
$508,035 in 2024, compared to $555,311 in 2023.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of
($250,130) an increase in the deficit by $40,054 from the prior year. Revenues increased by $105,237
over 2023 and expenses increased by $1,309. The operating loss for the arena was $642,900 for 2024
compared to $746,828 for 2023.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, revenues were $2,517,571 more than budget, as the continued commercial and
residential redevelopment of the City increased our charges for services exceeded budget by
$1,352,747. Taxes and assessments revenue was under budget by $1,068,512 due to delinquent
balances. Investment and Miscellaneous income revenue was over budget by $1,296,044 because of
conservative budgeting.
During the year, expenditures were under budget by $3,935,974 due to deficits in public safety
expenditures in the amount of $1,658,247, deficits in public works expenditures of $1,301,491 and
deficits in park and recreation expenditures of $580,341.
25
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
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, 2024, amounted to $386,126,051(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 $29,528,486.
Major capital asset events during the current fiscal year included the following:
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 $43,116,108 in the
utility fund.
A variety of street construction, sidewalk and park projects, including Blake Road and
Concord B/C; construction in progress as of the close of the fiscal year reached
$21,995,862(PIR + PACS).
The City has a number of public improvements underway in the Grandview district including
rehabilitation of the Grandview Pedestrian Bridge, and parking and road improvements in the
district. The construction in process cost was $9,013,642.
The new fire station 2 construction in progress cost was $26,946,648 at the close of the fiscal
year.
City of Edina's Capital Assets (Net of Depreciation)
2024 2023 2024 2023 2024 2023
Land and land improvements 24,740,033$ 24,744,751$ 8,719,256$ 9,446,353$ 33,459,289$ 34,191,104$ Easements 253,000 253,000 35,600 35,600 288,600 288,600
Building and structures 29,798,262 29,769,119 12,898,481 14,468,578 42,696,743 44,237,697
Machinery and equipment 14,597,485 10,264,324 5,410,771 5,629,698 20,008,256 15,894,022
Infrastructure 78,634,322 72,092,387 85,506,493 81,672,966 164,140,815 153,765,353
Parks 8,249,106 8,282,105 880,483 925,290 9,129,589 9,207,395
Construction in progress 72,473,695 56,829,073 43,187,759 41,802,493 115,661,454 98,631,566
Lease assets 106,315 370,187 634,990 11,641 741,305 381,828
Total 228,852,218$ 202,604,946$ 157,273,833$ 153,992,619$ 386,126,051$ 356,597,565$
TotalBusiness-Type ActivitiesGovernmental Activities
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 long-term debt outstanding is $186,366,000, an
increase of $50,614,000 from 2023. $60,315,000 is for general obligation improvement debt that is
supported by property tax levies and special assessments. This amount increased from 2023 due to
new debt issues offset by regularly scheduled principal payments.
26
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Long-Term Debt (Continued)
$26,719,000 is for permanent improvement revolving (PIR) bonds, which finance the City's Street
reconstruction program. This amount increased from 2023 due to new bond issues offset by regularly
scheduled principal payment.
Also outstanding is $21,850,000 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 increased from 2023 due to the new sales tax revenue bond issued in 2024 offset by
regularly scheduled principal payments.
$12,410,000 is for tax increment financing bonds, for improvements within tax increment districts.
This amount increased from 2023 due to a new bond issue for public roadway improvements within
the Eden/Wilson tax increment district. Minnesota state aid street bonds has an outstanding balance
of $9,980,000 for Municipal state aid eligible costs repaid from future state-aid allotments. Housing
improvement area bonds were issued in 2024 to finance common area housing improvements within
the Edina West Condominium Association Housing Improvement to be supported by special
assessments.
Outstanding Debt
2024 2023 2024 2023 2024 2023
General Obligation Bonds 60,315,000$ 28,585,000$ -$ -$ 60,315,000$ 28,585,000$ Public Improvement Bonds 26,719,000 25,713,000 - - 26,719,000 25,713,000 Public Project Revenue Bonds 21,850,000 11,860,000 - - 21,850,000 11,860,000 Tax Increment Financing Bonds 12,410,000 7,295,000 - - 12,410,000 7,295,000 Minnesota State Aid Street Bonds 9,980,000 10,465,000 - - 9,980,000 10,465,000 Housing Improvement Area (HIA) Bonds 3,065,000 - - - 3,065,000 - Revenue Bonds - - 52,027,000 51,834,000 52,027,000 51,834,000
Total 134,339,000$ 83,918,000$ 52,027,000$ 51,834,000$ 186,366,000$ 135,752,000$
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 $499,411,215. Only
$85,230,000 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 4% (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.
27
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2024
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET (CONTINUED)
Property values in Edina decreased for several years from 2009-2012 and have risen each year since.
Estimated market value of real estate increased 7.7% for taxes payable in 2024 (market value in
2023).
$12,879,164,400
$13,344,357,600 $13,796,381,100 $15,461,411,000
$16,647,040,500
$157,910,360 $164,716,554 $169,928,228 $190,473,325 $205,645,781
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
$-
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
$14,000,000,000
$16,000,000,000
$18,000,000,000
$20,000,000,000
2020 2021 2022 2023 2024
Market Value and Tax Capacity Annual Changes
Market Value Tax Capacity
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 7.7% in 2023 for taxes payable in 2024
and remained positive for the tenth consecutive year.
All these factors above were considered in preparing the City's budget for the 2024 fiscal year. The
City's adopted 2024 budget includes a property tax levy of $54,418,565 for all funds, an increase of
9.15% from the 2023 levy, with the increase being attributed to the introduction of the new special
park improvement levy, the scheduled increase to the street reconstruction levy, which will
eventually replace special assessments for road reconstruction. The increased levies are also for the
City's equipment replacement expenditures, HRA operating expenditures, and general operating levy.
Financial Contact
This financial report is designed to provide a general overview of the City's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in
this report or requests for additional financial information should be addressed to the Office of the
Finance Director, 4801 West 50th Street, Edina, Minnesota 55424. The City's Annual Comprehensive
Financial Report can also be found on the internet at www.edinamn.gov.
28
(THIS PAGE LEFT BLANK INTENTIONALLY)
29
BASIC FINANCIAL STATEMENTS
See notes to basic financial statements. 30
Governmental
Activities
Business-Type
Activities Total
Assets
Current assets
Cash and investments (including cash equivalents) 138,099,498$ 50,272,540$ 188,372,038$
Temporarily restricted cash 18,164,366 - 18,164,366
Accrued interest 1,051,058 372,864 1,423,922
Accounts receivable 1,639,197 7,936,946 9,576,143
Delinquent taxes receivable 217,349 - 217,349
Special assessments receivable 23,968,314 485,455 24,453,769
Due from other governments 7,770,887 - 7,770,887
Lease receivable 1,535,327 - 1,535,327
Internal balances (2,364,128) 2,364,128 -
Inventory - 1,716,047 1,716,047
Prepaid items 920,039 564,685 1,484,724
Total current assets 191,001,907 63,712,665 254,714,572
Noncurrent assets
Loan receivable 13,272,201 - 13,272,201
Equity interest in joint venture 1,770,353 - 1,770,353
Nondepreciable capital assets 94,131,778 43,508,700 137,640,478
Depreciable capital assets (Net)134,720,440 113,765,133 248,485,573
Total noncurrent assets 243,894,772 157,273,833 401,168,605
Total assets 434,896,679 220,986,498 655,883,177
Deferred Outflows of Resources
Defined benefit pension plans 20,449,008 835,988 21,284,996
OPEB plan deferments 2,089,913 194,145 2,284,058
Total deferred outflows of resources 22,538,921 1,030,133 23,569,054
Liabilities
Current liabilities
Accounts payable 9,548,350 2,960,802 12,509,152
Salaries payable 2,487,607 698,924 3,186,531
Accrued interest payable 1,078,426 801,381 1,879,807
Contracts payable 1,598,704 467,651 2,066,355
Due to other governments 359,580 266,968 626,548
Deposits payable 2,128,253
Unearned revenue 2,201,929 457,361
Total OPEB liability 97,411 9,049
Compensated absences payable 2,842,496 449,439
Bonds and loans payable, net 22,705,000 6,004,000
Lease liability 3,006 173,765 176,771
Subscription liability 124,297 - 124,297
Total current liabilities 45,175,059 12,289,340 57,464,399
Noncurrent liabilities
Total OPEB liability 4,083,822 379,372 4,463,194
Net pension liability 19,204,432 3,332,519 22,536,951
Compensated absences payable 4,263,745 674,159 4,937,904
Bonds and loans payable, net 119,447,321 50,147,760 169,595,081
Lease liability 2,563 464,525 467,088
Total noncurrent liabilities 147,001,883 54,998,335 202,000,218
Total liabilities 192,176,942 67,287,675 259,464,617
Deferred Inflows of Resources
Defined benefit pension plans 26,347,538 2,438,183 28,785,721
OPEB plan deferments 1,793,307 166,591 1,959,898
Leases 1,471,186 - 1,471,186
Total deferred inflows of resources 29,612,031 2,604,774 32,216,805
Net Position
Net investment in capital assets 131,971,012 102,429,959 234,400,971
Restricted for
Tax increments 23,967,622 - 23,967,622
Debt service 25,683,139 1,243,768 26,926,907
Affordable housing 10,615,700 - 10,615,700
Highway construction 17,451,986 - 17,451,986
Capital projects 5,553,218 - 5,553,218
Parkland dedication 58,086 - 58,086
Police 988,952 - 988,952
Braemar golf donations 120,162 - 120,162
Pedestrian and cyclist improvements 260,214 - 260,214
Conservation and sustainablity initiatives 1,029,032 - 1,029,032
Public safety 2,293,448
-
2,293,448
Opioid epidemic responses 237,052 - 237,052
Unrestricted 15,417,004 48,450,455 63,867,459
Total net position 235,646,627$ 152,124,182$ 387,770,809$
City of Edina
Statement of Net Position
December 31, 2024
-
2,128,253
2,659,290
28,709,000
106,460
3,291,935
See notes to basic financial statements. 31
Program Revenues
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-Type
Activities Total
Governmental activities
General government 19,817,993$ 2,626,044$ 2,812,030$ -$ (14,379,919)$ -$(14,379,919)$
Public safety 32,565,377 11,224,257 1,898,524 - (19,442,596) - (19,442,596)
Public works 17,270,199 916,393 920,761 10,997,515 (4,435,530)- (4,435,530)
Parks 9,035,898 845,816 22,248 - (8,167,834)- (8,167,834)
Interest on long-term debt 1,993,206 - - - (1,993,206) - (1,993,206)
Total governmental activities 80,682,673 15,612,510 5,653,563 10,997,515 (48,419,085) - (48,419,085)
Business-type activities
Water 6,908,508 12,108,941 - - - 5,200,433 5,200,433
Sewer 9,258,115 11,744,821 - - - 2,486,706 2,486,706
Stormwater 4,597,085 6,349,555 - - - 1,752,470 1,752,470
Recycling 1,884,856 1,740,862 219,478 - - 75,484 75,484
Liquor 12,182,004 12,641,168 - - - 459,164 459,164
Aquatic Center 1,411,631 1,122,688 - - - (288,943) (288,943)
Golf Course 5,664,944 6,289,801 - - - 624,857 624,857
Arena 3,374,912 2,861,737 - - - (513,175) (513,175)
Community activity centers 5,266,795 3,377,410 6,053 - - (1,883,332) (1,883,332)
Total business-type activities 50,548,850 58,236,983 225,531 - - 7,913,664 7,913,664
Total primary government 131,231,523$ 73,849,493$ 5,879,094$ 10,997,515$ (48,419,085) 7,913,664 (40,505,421)
General revenues
Property taxes 53,412,154 - 53,412,154
Franchise fees 3,322,639 - 3,322,639
Tax increments 3,176,176 - 3,176,176
Lodging taxes 30,240 4,875 35,115
General sales tax 6,537,828 - 6,537,828
Unrestricted investment earnings 3,949,750 1,830,869 5,780,619
Gain on sale of capital assets 394,009 52,607 446,616
Transfers 40,144 (40,144) -
Total general revenues and transfers 70,862,940 1,848,207 72,711,147
Change in net position 22,443,855 9,761,871 32,205,726
Net position - beginning, as previously stated 212,918,469 141,998,293 354,916,762
Change in accounting principle (See Note 17)284,303 364,018 648,321
Net position - beginning, as restated 213,202,772 142,362,311 355,565,083
Net position - ending 235,646,627$ 152,124,182$ 387,770,809$
Functions/Programs
City of Edina
Statement of Activities
Year Ended December 31, 2024
Net (Expense) Revenues
and Changes in Net Position
32
General
Housing and
Redevelopment
Authority Debt Service Construction
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 36,521,961$ 22,580,823$ 6,935,510$ 61,926,745$ 4,511,715$ 132,476,754$
Restricted cash and
investments - - 18,164,366 - - 18,164,366
Accrued interest 425,802 129,148 704 456,493 38,911 1,051,058
Accounts receivable 598,580 231,420 - 82,865 627,039 1,539,904
Taxes receivable 160,108 4,272 17,468 35,501 - 217,349
Special assessments receivable - 4,907,543 1,630,279 17,430,492 - 23,968,314
Leases receivable 1,535,327 - - - - 1,535,327
Due from other funds - - - 17,494 - 17,494
Due from other governments 694,927 31,777 15,652 6,793,509 185,876 7,721,741
Prepaid items 157,932 - - - 12,960 170,892
Loans receivable - 13,272,201 - - - 13,272,201
Total assets 40,094,637$ 41,157,184$ 26,763,979$ 86,743,099$ 5,376,501$ 200,135,400$
Liabilities
Accounts payable 1,476,687$ 1,470,343$ 2,414$ 5,817,987$ 224,131$ 8,991,562$
Salaries payable 2,309,660 8,831 - 7,004 19,495 2,344,990
Contracts payable - 109,232 - 1,410,114 79,358 1,598,704
Due to other funds - -- -17,494 17,494
Due to other governments 229,637 12,497 - 103,311 3,991 349,436
Deposits payable 2,080,109 48,144 - -- 2,128,253
Unearned revenue 1,429,339 13,000 759,500 - 90 2,201,929
Total liabilities 7,525,432 1,662,047 761,914 7,338,416 344,559 17,632,368
Deferred Inflows of Resources
Unavailable revenue - taxes 160,108 4,272 17,468 35,501 - 217,349
Unavailable revenue - special assessments - 4,907,543 1,630,279 17,416,485 - 23,954,307
Unavailable revenue - other - -- 5,553,218 185,876 5,739,094
Leases 1,471,186 - - - - 1,471,186
Total deferred inflows of resources 1,631,294 4,911,815 1,647,747 23,005,204 185,876 31,381,936
Fund Balances
Nonspendable 157,932 - - - 12,960 170,892
Restricted 58,086 34,583,322 24,354,318 46,999,685 4,928,860 110,924,271
Assigned 5,247,146 - - 9,399,794 - 14,646,940
Unassigned 25,474,747 - - - (95,754) 25,378,993
Total fund balances 30,937,911 34,583,322 24,354,318 56,399,479 4,846,066 151,121,096
Total liabilities, deferred inflows of
resources, and fund balance 40,094,637$ 41,157,184$ 26,763,979$ 86,743,099$ 5,376,501$ 200,135,400$
City of Edina
Balance Sheet - Governmental Funds
December 31, 2024
See notes to basic financial statements. 33
City of Edina
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2024
Total fund balances - governmental funds 151,121,096$
Cost of capital assets 401,142,559
Less accumulated depreciation/amortization (172,972,905)
Certain revenues are include in net position but are excluded from fund balances until they are
available to liquidate liabilities of the current period. Unavailable revenue relating to:
Property taxes 217,349
Special assessments 23,954,307
Other 5,739,094
Long-term liabilities are included in net position but are excluded from fund balances until due
and payable.
Bonds payable (134,339,000)
Premium on bonds (7,063,321)
Loan payable (750,000)
Subscription liability (20,487)
Lease liability (5,569)
Interest payable (1,078,426)
Compensated absences payable (7,106,241)
Governmental funds do not report long-term amounts relating to OPEB. Deferred outflows of
resources and deferred inflows of resources are created as a result of various differences related
to OPEB that are not recognized in the governmental funds.
Deferred inflows of resources related to OPEB (1,793,307)
Deferred outflows of resources related to OPEB 2,089,913
Total OPEB liability (4,181,233)
Governmental funds do not report long-term amounts relating to pensions. Deferred outflows
of resources and deferred inflows of resources are created as a result of various differences
related to pensions that are not recognized in the governmental funds.
Deferred inflows of resources related to pensions (26,347,538)
Deferred outflows of resources related to pensions 20,449,008
Net pension liability (19,204,432)
An internal service fund is used by management to charge the costs of insurance to individual
funds. The assets and liabilities of the Self-Insurance Internal Service Fund are included in
governmental activities in the Statement of Net Position. 4,025,407
Equity interests in underlying capital assets of joint ventures associated with governmental funds
are not reported in such funds because they do not represent financial assets.
Equity interest in joint venture 1,770,353
Total net position - governmental activities 235,646,627$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not current financial resources and, therefore,
are not reported as assets in governmental funds.
See notes to basic financial statements. 34
General
Housing and
Redevelopment
Authority Debt Service Construction
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Revenues
General property taxes 43,048,860$ 247,883$ 3,415,010$ 6,837,370$ -$ 53,549,123$
Tax increment collections - 3,176,176 - - - 3,176,176
Franchise taxes 716,553 - - 514,966 2,091,120 3,322,639
Lodging tax 30,240 - - - - 30,240
General sales tax - - - 6,537,828 - 6,537,828
Special assessments - 35,228 187,805 4,538,805 - 4,761,838
License and permits 5,929,040 - - 82,079 - 6,011,119
Intergovernmental 3,463,746 558,542 996,125 1,000,147 129,349 6,147,909
Charges for services 7,752,223 - - 217,351 - 7,969,574
Fines and forfeitures 621,837 - - - - 621,837
Investment income 1,095,116 653,454 10,534 2,018,772 171,874 3,949,750
Rental of property 465,411 - - - - 465,411
Other revenues 178,730 127,945 - 16,574 312,004 635,253
Total revenues 63,301,756 4,799,228 4,609,474 21,763,892 2,704,347 97,178,697
Expenditures
Current
General government 11,277,953 3,181,642 - 111,018 95,754 14,666,367
Public safety 29,733,802 - - 274,271 258,116 30,266,189
Public works 10,434,832 - - 2,014,285 765,173 13,214,290
Parks 7,152,757 - - 316,216 2,153 7,471,126
Capital outlay
General government 216,055 3,374,619 - 1,961,242 - 5,551,916
Public safety - - - 13,377,803 120,017 13,497,820
Public works 55,787 - - 9,195,944 2,416,089 11,667,820
Parks 61,479 - - 5,694,097 - 5,755,576
Debt Service
Principal 26,676 - 5,199,000 - - 5,225,676
Interest and fiscal charges 170 - 2,749,731 - - 2,749,901
Total expenditures 58,959,511 6,556,261 7,948,731 32,944,876 3,657,302 110,066,681
Revenues over (under) expenditures 4,342,245 (1,757,033) (3,339,257) (11,180,984) (952,955) (12,887,984)
Other Financing Sources (Uses)
Transfers in 222,460 - 3,333,463 530,659 - 4,086,582
Transfers out (730,659) (467,050) - (2,866,413) - (4,064,122)
Sale of capital assets 24,286 - - 369,723 - 394,009
Bonds issued - 8,321,598 16,950,902 30,347,500 - 55,620,000
Premium on bonds issued - 478,907 685,119 2,226,303 - 3,390,329
Total other financing
sources (uses)(483,913) 8,333,455 20,969,484 30,607,772 - 59,426,798
Net Increase (Decrease)
in Fund Balance 3,858,332 6,576,422 17,630,227 19,426,788 (952,955) 46,538,814
Fund Balance - Beginning of Year 27,079,579 28,006,900 6,724,091 36,972,691 5,799,021 104,582,282
Fund Balance - End of Year 30,937,911$ 34,583,322$ 24,354,318$ 56,399,479$ 4,846,066$ 151,121,096$
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2024
See notes to basic financial statements. 35
City of Edina
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
Year Ended December 31, 2024
46,538,814$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement
of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation
expense.
Capital outlays 36,547,595
Depreciation/amortization expense (10,839,726)
Revenues relating to delinquent taxes, special assessments, and other unavailable receivables are
included in the change in net position but are excluded from the net change in fund balances until
they are available to liquidate liabilities of the current period. 4,866,613
The issuance of long-term debt provides current financial resources to governmental funds,
while repayment of the principal of long-term debt consumes the current financial resources
of governmental funds. Neither transaction, however, has any effect on net position. Also,
governmental funds reported the effect of premiums, discounts, and similar items when debt is
first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Proceeds from bonds issued (55,620,000)
Premium on bonds issued (3,390,329)
Bond principal payments and adjustments 5,199,000
Lease principal payments and adjustments 2,939
Subscription principal payments and adjustments 23,737
Some expenses reported in the Statement of Activities do not require the use of current financial
resources and therefore, are not reported as expenditures in governmental funds.
Amortization of bond premium 682,802
Accrued interest payable 73,893
Compensated absences (1,956,664)
OPEB (250,761)
Pension costs in governmental funds are recognized when employer contributions are made.
On the Statement of Activities pension costs are recognized on the accrual basis. The difference
between actual employer contributions and accrual basis pension costs is reflected in pension
expense.
Pension expense 932,646
An internal service fund is used by management to charge the costs of insurance to individual
funds. The change in net position of the Self-Insurance Internal Service Fund is included in
governmental activities in the Statement of Net Position. (366,704)
Change in net position - governmental activities 22,443,855$
Net change in fund balances - governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
the Statement of Activities - Governmental Funds
See notes to basic financial statements. 36
Governmental
Activities
Utilities Liquor Aquatic Center Golf Course Arena
Nonmajor
Enterprise
Funds
Total Enterprise
Funds
Internal Service
Funds
Assets
Current assets
Cash and investments (including cash equivilants)40,410,286$ 1,313,223$ 2,217,813$ 3,419,939$ 430,231$ 2,481,048$ 50,272,540$ 5,622,744$
Interest receivable 287,539 12,239 19,166 34,638 2,540 16,742 372,864 -
Accounts receivable, net 7,296,690 111,724 2,774 112,497 232,433 180,828 7,936,946 99,293
Special assessments receivable 485,455 - - - - -485,455 -
Due from other governments - - - - - - - 49,146
Prepaid expenses 557,416 -521 4,766 -1,982 564,685 749,147
Inventory 43,921 1,522,847 -149,279 --1,716,047 -
Total current assets 49,081,307 2,960,033 2,240,274 3,721,119 665,204 2,680,600 61,348,537 6,520,330
Noncurrent assets
Net capital assets 133,087,793 1,233,485 799,682 9,159,994 5,328,424 7,664,455 157,273,833 682,564
Total assets 182,169,100 4,193,518 3,039,956 12,881,113 5,993,628 10,345,055 218,622,370 7,202,894
Deferred Outflows of Resources
OPEB deferred outflows 47,508 36,545 -43,854 21,242 44,996 194,145 -
Pension deferred outflows 221,105 195,004 7,221 166,249 86,126 160,283 835,988 -
Total deferred outflows of resources 268,613 231,549 7,221 210,103 107,368 205,279 1,030,133 -
Liabilities
Current liabilities
Accounts payable 1,981,042 468,850 1,629 164,574 156,107 188,600 2,960,802 556,788
Salaries payable 175,089 151,389 2,998 128,475 90,115 150,858 698,924 142,617
Accrued interest payable 690,949 -4,750 83,644 22,038 -
Contracts payable 467,651 --- - -
Due to other governments 49,740 161,339 30 19,955 8,366 27,538 10,144
Unearned revenue -17,047 412,177 4,718 23,419 -
Compensated absences payable 114,103 93,900 184 122,556 34,446 84,248
- 801,381
- 467,651
266,968
457,361
449,439 -
Total OPEB liability - current 2,214 1,703 -2,044 990 2,098 9,049 -
Bonds payable - current 4,995,000 -90,000 640,000 279,000 -6,004,000 -
Lease liability - current - - - 165,615 8,150 -173,765 -
Subscription liability- current - - - - - - - 103,810
Total current liabilities 8,475,788 894,228 99,591 1,739,040 603,930 476,761 12,289,340 813,359
Noncurrent liabilities
Total OPEB liability 92,835 71,411 -85,693 41,508 87,925 379,372 -
Net pension liability 881,395 777,351 28,784 662,724 343,327 638,938 3,332,519 -
Compensated absences payable 171,155 140,851 277 183,835 51,670 126,373 674,159 -
Bonds payable, net of unamortized
discounts and premiums 42,420,715 -205,275 5,521,186 2,000,584 -50,147,760 -
Lease liability - - - 454,745 9,780 -464,525 -
Total noncurrent liabilities 43,566,100 989,613 234,336 6,908,183 2,446,869 853,236 54,998,335 -
Total liabilities 52,041,888 1,883,841 333,927 8,647,223 3,050,799 1,329,997 67,287,675 813,359
Deferred Inflows of Resources
OPEB deferred inflows 40,765 31,358 -37,631 18,227 38,610 166,591 -
Pension deferred inflows 644,858 568,736 21,059 484,871 251,190 467,469 2,438,183 -
Total deferred intflows of resources 685,623 600,094 21,059 522,502 269,417 506,079 2,604,774 -
Net Position
Net investment in capital assets 87,618,254 1,233,485 504,407 2,378,448 3,030,910 7,664,455 102,429,959 578,754
Restricted for Edina Law Debt - - 1,243,768 - - - 1,243,768 -
Unrestricted 42,091,948 707,647 944,016 1,543,043 (250,130) 1,049,803 46,086,327 5,810,781
Total net position 129,710,202$ 1,941,132$ 2,692,191$ 3,921,491$ 2,780,780$ 8,714,258 149,760,054$ 6,389,535$
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. 2,364,128
Net position of business-type activities 152,124,182$
City of Edina
Statement of Net Position - Proprietary Funds
December 31, 2024
Business-Type Activities - Enterprise Funds
-
See notes to basic financial statements. 37
Governmental
Activities
Utilities Liquor Aquatic Center Golf Course Arena
Nonmajor
Enterprise
Funds
Total
Enterprise
Funds
Internal
Service Funds
Operating Revenues
Sales - liquor -$ 12,402,795$ -$ -$ -$ -$ 12,402,795$ -$
Sales - retail - 238,373 7,623 420,760 22,272 7,286 696,314 -
Sales - utilities 28,903,075 - - - - - 28,903,075 -
Sales - concessions - - 153,839 13,228 322,261 99,773 589,101 -
Memberships - - 309,054 338,946 - 185,734 833,734 -
Admissions - - 561,973 1,406,922 32,980 790,073 2,791,948 -
Lodging tax - - - - - 4,875 4,875 -
Building rental - - 85,021 215,245 2,248,430 968,178 3,516,874 -
Rental of equipment - - - 510,191 6,247 213,205 729,643 -
Greens fees - - - 2,194,552 - 333,848 2,528,400 -
Other fees 3,040,174 - - 1,189,957 221,780 725,395 5,177,306 9,776,396
Total operating revenues 31,943,249 12,641,168 1,117,510 6,289,801 2,853,970 3,328,367 58,174,065 9,776,396
Operating Expenses
Cost of sales and services - 8,431,072 76,507 301,452 150,245 50,009 9,009,285 -
Personal services 2,896,432 2,494,732 700,503 2,805,675 1,366,651 2,602,639 12,866,632 3,372,756
Contractual services 10,380,128 874,244 274,636 824,685 1,040,744 1,116,328 14,510,765 3,857,772
Commodities 1,370,419 43,649 127,389 411,365 110,141 272,057 2,335,020 967,549
Internal services 1,706,605 438,240 53,052 502,956 303,252 447,120 3,451,225 -
Depreciation and amortization 6,202,614 125,136 202,799 937,841 525,837 987,120 8,981,347 211,396
Total operating expenses 22,556,198 12,407,073 1,434,886 5,783,974 3,496,870 5,475,273 51,154,274 8,409,473
Operating income (loss) 9,387,051 234,095 (317,376) 505,827 (642,900) (2,146,906) 7,019,791 1,366,923
Nonoperating Revenues (Expenses)
Intergovernmental 219,478 - - - - - 219,478 -
Investment income 1,440,937 62,569 88,054 145,164 15,170 78,975 1,830,869 -
Donations - - - - - 59,971 59,971 -
Interest and fiscal charges (1,664,004) - (11,683) (202,615) (54,146) - (1,932,448) -
Amortization of bond premiums (discounts) 695,169 - 7,692 63,339 20,361 - 786,561 -
Gain (loss) on sale of capital assets 41,300 - - - - 11,307 52,607 -
Miscellaneous 930 - 5,178 - 7,767 - 13,875 -
Total nonoperating revenues (expenses) 733,810 62,569 89,241 5,888 (10,848) 150,253 1,030,913 -
Income (loss) before transfers 10,120,861 296,664 (228,135) 511,715 (653,748) (1,996,653) 8,050,704 1,366,923
Transfers
Transfers in - 4,916 14,941 67,160 409,850 942,868 1,439,735 17,684
Transfers out (479,879) (1,000,000) - - - - (1,479,879) -
Total transfers (479,879) (995,084) 14,941 67,160 409,850 942,868 (40,144) 17,684
Change in net position 9,640,982 (698,420) (213,194) 578,875 (243,898) (1,053,785) 8,010,560 1,384,607
Net position - beginning of year 119,798,267 2,639,552 2,905,385 3,258,420 3,018,045 9,765,807 141,385,476 4,892,254
Change in accounting principle (Note 17) 270,953 - - 84,196 6,633 2,236 364,018 112,674
Net position - beginning of year, restated 120,069,220 2,639,552 2,905,385 3,342,616 3,024,678 9,768,043 141,749,494 5,004,928
Net position - end of year 129,710,202$ 1,941,132$ 2,692,191$ 3,921,491$ 2,780,780$ 8,714,258$ 149,760,054$ 6,389,535$
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 1,751,311$
Change in net position of business-type activities 9,761,871$
City of Edina
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2024
Business-Type Activities - Enterprise Funds
See notes to basic financial statements. 38
Governmental
Activities
Utilities Liquor
Aquatic
Center Golf Course Arena
Nonmajor
Enterprise
Funds
Totals
Enterprise
Funds
Internal
Service Funds
Cash Flows - Operating Activities
Receipts from customers 31,862,806$ 12,532,382$ 1,112,423$ 6,274,501$ 2,918,504$ 3,192,865$ 57,893,481$ 9,777,682$
Payments to suppliers (14,317,143) (9,285,365) (528,777) (1,961,985) (1,594,404) (1,808,480) (29,496,154) (4,586,260)
Payments to employees (2,969,241) (2,643,209) (690,153) (2,662,802) (1,397,478) (2,406,762) (12,769,645) (3,335,128)
Net cash flows - operating activities 14,576,422 603,808 (106,507) 1,649,714 (73,378) (1,022,377) 15,627,682 1,856,294
Cash Flows - Noncapital
Financing Activities
Grants and contributions 220,408 - 5,178 - 7,767 59,971 293,324 -
Transfer from other funds - 4,916 14,941 67,160 409,850 942,868 1,439,735 17,684
Transfer to other funds (479,879) (1,000,000) - - - - (1,479,879) -
Net cash flows - noncapital
financing activities (259,471) (995,084) 20,119 67,160 417,617 1,002,839 253,180 17,684
Cash Flows - Capital and Related
Financing Activities
Payments on special assessments (51,269) - - - - - (51,269) -
Principal paid on debt (4,735,000) - (85,000) (767,630) (278,689) - (5,866,319) (216,738)
Interest paid on debt (1,759,127) - (13,100) (209,340) (56,975) (5,178) (2,043,720) -
Bond proceeds 6,621,525 - -- - - 6,621,525 -
Proceeds from disposal of capital assets 94,347 - -- - 11,307 105,654 60,594
Acquisition of capital assets (10,943,455) - (11,560) (117,030) (22,943) (77,159) (11,172,147) (527,090)
Net cash flows - capital and related
financing activities (10,772,979) - (109,660) (1,094,000) (358,607) (71,030) (12,406,276) (683,234)
Cash Flows - Investing Activities
Interest and dividends received 1,398,278 63,753 85,416 134,076 16,404 82,780 1,780,707 -
Net change in cash and cash equivalents 4,942,250 (327,523) (110,632) 756,950 2,036 (7,788) 5,255,293 1,190,744
Cash and cash equivalents, January 1 35,468,036 1,640,746 2,328,445 2,662,989 428,195 2,488,836 45,017,247 4,432,000
Cash and cash equivalents, December 31 40,410,286$ 1,313,223$ 2,217,813$ 3,419,939$ 430,231$ 2,481,048$ 50,272,540$ 5,622,744$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss) 9,387,051$ 234,095$ (317,376)$ 505,827$ (642,900)$ (2,146,906)$ 7,019,791$ 1,366,923$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 6,202,614 125,136 202,799 937,841 525,837 987,120 8,981,347 211,396
Accounts receivable (80,443) (110,840) (256) (74,989) 61,976 (139,201) (343,753) 2,027
Due from other governments - 2,054 (170)59,689 2,558 3,699 67,830 (741)
Prepaid items (31,550) 390 - 2,915 - (94)(28,339) (85,183)
Inventory - 583,547 - (4,119) - -579,428 -
Accounts payable (296,288) (73,250) (1,884)86,644 18,373 61,759 (204,646)314,100
Contracts payable (500,498) - - - - 15,369 (485,129) -
Due to other governmental units (31,655) (8,847) 30 (6,967) (8,395) 46,326 (9,508) 10,144
Salaries payable 32,881 32,707 815 36,917 26,244 - 129,564 37,628
OPEB 8,706 (7,743) - 8,511 923 12,273 22,670 -
Pension related activity (176,768) (204,360) 9,074 30,002 (110,989) 48,066 (404,975) -
Compensated absences payable 62,372 30,919 461 67,443 52,995 89,212 303,402 -
Total adjustments 5,189,371 369,713 210,869 1,143,887 569,522 1,124,529 8,607,891 489,371
Net cash flows -
operating activities 14,576,422$ 603,808$ (106,507)$ 1,649,714$ (73,378)$ (1,022,377)$ 15,627,682$ 1,856,294$
Noncash Capital and Related
Financing Activities
Acquisition of capital assets with
Lease issuance -$ -$ -$ 754,824$ 24,619$ -$ 779,443$ -$
City of EdinaStatement of Cash Flows - Proprietary FundsYear Ended December 31, 2024
Business-Type Activities - Enterprise Funds
See notes to basic financial statements. 39
Custodial
Funds
Assets
Cash and investments 107,150$
Prepaids 4,343
Due from other governments 870,435
Total assets 981,928
Liabilities
Cash overdraft 132,532
Accounts payable 288,209
Salaries payable 35,309
Due to other governments 254,384
Unearned revenue 5,087
Total liabilities 715,521
Net Position
Held in custody for other governmental units 266,407$
Custodial
Funds
Additions
Collections on behalf of others 2,073,902$
Deductions
Payments on behalf of others 2,035,957
Change in net position 37,945
Net Position
Beginning of year 228,462
End of year 266,407$
Year Ended December 31, 2024
Custodial Funds
Custodial Funds
City of Edina
City of Edina
Statement of Fiduciary Net Position
December 31, 2024
Statement of Changes Fiduciary Net Position
40
(THIS PAGE LEFT BLANK INTENTIONALLY)
41
NOTES TO BASIC FINANCIAL STATEMENTS
42
City of Edina
Notes to Basic Financial Statements
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. 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.
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, intergovernmental revenues, and other
nonexchange transactions, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
43
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B.Government-Wide and Fund Financial Statements (Continued)
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.
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.
44
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C.Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
The City reports the following major governmental funds:
General Fund – This 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.
Special Revenue Housing and Redevelopment Authority Fund – This fund is used to account for
revenues from several sources (property taxes, bond proceeds, investment earnings, etc.) that
are restricted for housing and redevelopment.
Debt Service Fund – This fund accounts for the payment of principal and interest on General
Obligation, Permanent Improvement Revolving, and Public Project Revenue Bonds.
Capital Projects Construction Fund – This 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:
Utilities Fund – This fund accounts for the provision of water, sewer, storm, and recycling
services to the City's residents.
Liquor Fund – This fund accounts for the operation of the City's three liquor stores.
Aquatic Center Fund – This fund accounts for the operation of the City's aquatic center.
Golf Course Fund – This fund accounts for the operation of the City's two golf courses and a golf
dome.
Arena Fund – This fund accounts for the operation of the City's ice arena.
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.
45
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
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 – These 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.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
1. Deposits and Investments
a. 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.
46
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
1. Deposits and Investments (Continued)
b. 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.
c. 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.
2. 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, 2024 are planned to be
eliminated in 2025. 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.
3. Property Taxes
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.
a. 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.
47
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
3. Property Taxes (Continued)
b. 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.
4. Special Assessments
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with state statutes. These assessments
are collectible by the City over a term of years usually 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.
a. 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.
48
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
4. Special Assessments (Continued)
b. 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, 2024:
Enterprise
Funds
Housing and
Redevelopment Debt
Authority Service Construction Utilities
Special Assessments Receivable
Current -$ -$ 14,007$ 6,022$
Deliquent - - 21,137 34,592
Deferred 4,907,543 1,630,279 17,395,348 444,841
Total 4,907,543$ 1,630,279$ 17,430,492$ 485,455$
Governmental Funds
5. Inventories
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.
6. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements and are
recorded as expenditures or expenses when consumed.
7. 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.
49
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
7. Capital Assets (Continued)
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:
Classification
Golf Course 10 - 35
Land Improvements 15 - 50
Building and Structures 15 - 40
Furniture and Office Equipment 5 - 10
Right-to-Use Assets 3 - 5
Vehicles and Equipment 3 - 20
Parks 5 - 100
Utility Infrastructure 20 - 50
Years
Capital assets that are not depreciated include land, easements, and construction in progress.
Right-to-use lease assets are initially measured at the present value of payments expected to be
made during the lease term, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized
in a systematic and rational manner over the shorter of the lease term or the useful life of the
underlying asset.
SBITA assets are initially measured as the sum of the present value of payments expected to be
made during the subscription term, payments associated with the SBITA contract made to the
SBITA vendor at the commencement of the subscription term, when applicable, and capitalizable
implementation costs, less any SBITA vendor incentives received form the SBITA vendor at the
commencement of the SBITA term. SBITA assets are amortized in a systematic and rational
manner over the shorter of the subscription term or the useful life of the underlying IT assets.
8. 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.
50
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
8. Leases (Continued)
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.
9. 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 or is more likely
than not to be used for time off or otherwise paid in cash or settled through noncash means.
According to City policy, vested sick leave benefits are liquidated into a health care savings plan
upon separation.
10. 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.
51
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D.Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
11. 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.
12. 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.
52
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
13. 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.
14. 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:
Nonspendable – Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
Restricted – Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
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.
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.
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, then use unrestricted resources as 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.
53
City of Edina
Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position or Equity
(Continued)
15. 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:
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.
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.
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.
16. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally
accepted in the United States of America requires management to make estimates that affect
amounts reported in the financial statements during the reporting period. Actual results could
differ from such estimates.
NOTE 2 – DEPOSITS AND INVESTMENTS
A. 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.
54
City of Edina
Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
A. Deposits (Continued)
At year-end, the carrying amount of the City's deposits was $225,908 while the balance on the bank
records was $71,652. At December 31, 2024, all of the City's deposits were properly collateralized in
accordance with state statutes.
B. Investments
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 – 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
$10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City's investment
policies specifically address credit risk, further limiting the City's exposure to credit risk by
requiring that all state and local government obligations to be rated "AA" or better by a national
rating agency.
Concentration Risk – This is the risk associated with investing a significant portion of the City's
investment (considered 5% or more) in the securities of a single issuer, excluding U.S. guaranteed
investments (such as Treasuries), investment pools, and mutual funds. The City's investment
policies specifically address the City's desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, there were no required disclosures for
concentration risk.
55
City of Edina
Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate
investment resulting in changes in interest rates (the longer the period for which an interest rate
is fixed, the greater the risk). The City's investment policies specifically address the City's desire
to limit interest rate risk, but do not set specific guidelines for measurement of this risk.
As of December 31, 2024, the City had the following investments and maturities:
Rating Fair Value
Less than
1 year 1-2 years 2-5 years 5+ years
Money Market N/A 73,271,051$ -$ 73,271,051$ -$ -$
Certificates of deposit N/R 13,647,768 4,686,423 2,970,861 5,740,177 250,307
Commercial paper AAA 90,251 90,251 - - -
Municipal Bonds A+ 62,414,705 16,689,165 11,627,705 24,546,446 9,551,389
Other gov't backed securities AA 56,963,511 6,338,616 5,905,044 23,635,666 21,084,185
Total non-pooled investments 206,387,286 27,804,455 93,774,661 53,922,289 30,885,881
Total Investments 206,387,286$ 27,804,455$ 93,774,661$ 53,922,289$ 30,885,881$
Type of Investments
Investment Maturities
As of December 31, 2024, the City had the following fair value measurements:
Total Level 1 Level 2 Level 3
Certificates of deposit 13,647,768$ -$13,647,768$ -$
Commercial paper 90,251 90,251 - -
Municipal bonds 62,414,705 - 62,414,705 -
Other gov't backed securities 56,963,511 28,237,947 28,725,564 -
Total 133,116,235 28,328,198$ 104,788,037$ -$
Investments at amortized cost 73,271,051
Total investments 206,387,286$
Type of Investments
56
City of Edina
Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
The following summary reconciles cash and investments to the financial statements:
Deposits 225,908$
Cash on hand 30,360
Investments 206,387,286
Total cash and investments 206,643,554$
Statement of Net Position
Governmental Funds 156,263,864$
Proprietary Funds 50,272,540
Fiduciary Funds 107,150
Total cash and investments 206,643,554$
57
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2024, was as follows:
Change in
Beginning Accouning Ending
Balance Principle 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 56,829,073 - 30,410,725 (14,766,103) - 72,473,695
Total capital assets
not being depreciated 78,487,156 - 30,410,725 (14,766,103) - 94,131,778
Capital assets being depreciated
Land Improvements 16,432,705 - 973,778 - - 17,406,483
Buildings and structures 56,205,914 - 1,538,085 - - 57,743,999
Furniture and office equipment 4,080,967 21,725 153,980 - - 4,256,672
Vehicles and equipment 24,510,332 453,782 6,168,450 (484,822) (58,652) 30,589,090
Infrastructure 160,257,394 - 11,724,075 (691,424) - 171,290,045
Parks 25,523,639 51,434 871,708 (73,576) - 26,373,205
Total capital assets being
depreciated 287,010,951 526,941 21,430,076 (1,249,822) (58,652) 307,659,494
Lease assets, being amortized
Vehicles and equipment 14,205 - - - - 14,205
Subscription based information
technology arrangement assets 564,295 - 12,390 (72,984) - 503,701
Total lease assets, being
amortized 578,500 - 12,390 (72,984) - 517,906
Less accumulated depreciation for
Land Improvements (13,093,037) - (978,496) - - (14,071,533)
Buildings and structures (26,436,795) - (1,508,942) - - (27,945,737)
Furniture and office equipment (3,850,835) (6,207) (59,317) - - (3,916,359)
Vehicles and equipment (14,476,140) (213,001) (2,244,903) 543,474 58,652 (16,331,918)
Infrastructure (88,165,007) - (5,182,140) 691,424 - (92,655,723)
Parks (17,241,534) (23,430) (932,710) 73,575 (18,124,099)
Total accumulated depreciation (163,263,348) (242,638) (10,906,508) 1,308,473 58,652 (173,045,369)
Less accumulated amortization
Vehicles and equipment (2,352) - (6,465) - - (8,817)
Subscription based information
technology arrangement assets (205,961) - (196,813) - - (402,774)
Total accumulated amortization (208,313) - (203,278) - - (411,591)
Total accumulated depreciation
and amortization (163,471,661) (242,638) (11,109,786) 1,308,473 58,652 (173,456,960)
Total capital assets being
depreciated or amortized, net 124,117,790 284,303 10,332,680 (14,333) - 134,720,440
Governmental activities capital
assets, net 202,604,946$ 284,303$ 40,743,405$ (14,780,436)$ -$ 228,852,218$
58
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2024, was as follows:
Change in
Beginning Accouning Ending
Balance Principle 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 41,802,493 - 1,385,266 - - 43,187,759
Total capital assets not
being depreciated 42,123,434 - 1,385,266 - - 43,508,700
Capital assets being depreciated
Land improvements and golf course 26,943,278 - - - - 26,943,278 Buildings and structures 48,667,709 - 13,825 - - 48,681,534
Furniture and office equipment 140,448 88,231 - - - 228,679
Vehicles and equipment 16,675,582 145,088 592,310 (414,916) 58,652 17,056,716
Utility infrastructure 165,195,428 340,461 9,169,186 - - 174,705,075 Parks 1,121,563 - 11,560 - - 1,133,123
Total capital assets
being depreciated 258,744,008 573,780 9,786,881 (414,916) 58,652 268,748,405
Lease assets, being amortized
Vehicles and equipment 139,461 - 779,443 (139,461) - 779,443
Less accumulated depreciation for
Land improvements and golf course (17,782,266) - (727,097) - - (18,509,363)
Buildings and structures (34,199,131) - (1,583,922) - - (35,783,053) Furniture and office equipment (158,675) (39,271) - - - (197,946)
Vehicles and equipment (11,027,657) (63,457) (888,781) 361,869 (58,652) (11,676,678)
Utility infrastructure (83,522,462) (107,034) (5,569,086) - - (89,198,582) Parks (196,273) - (56,367) - - (252,640)
Total accumulated depreciation (146,886,464) (209,762) (8,825,253) 361,869 (58,652) (155,618,262)
Less accumulated amortization Vehicles and equipment (127,820) - (156,094) 139,461 - (144,453)
Total accumulated depreciationand amortization (147,014,284) (209,762) (8,981,347) 501,330 (58,652) (155,762,715)
Total capital assets being
depreciated or amortized, net 111,869,185 364,018 1,584,977 (53,047) - 113,765,133
Governmental activities capital
assets, net 153,992,619$ 364,018$ 2,970,243$ (53,047)$ -$ 157,273,833$
59
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS (CONTINUED)
Depreciation and amortization expense was charged to the various functions of the City as follows:
Governmental activities
General government 779,851$
Public safety 1,285,639
Public works 7,587,327
Parks 1,456,969
Total depreciation and amortization expense - governmental activities 11,109,786$
Business-type activities
Utilities 6,202,614$
Liquor 125,136
Aquatic Center 202,799
Golf Course 937,841
Arena 525,837
Art Center 5,473
Edinborough Park 278,858
Centennial Lakes 165,830
Sports Dome 536,959
Total depreciation and amortization expense - business-type activities 8,981,347$
Construction Commitments
At December 31, 2024, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
Project
Number Project Description
FIR21008 New SE Quad Fire Station #2 23,777,436$ 13,929,724$
FIR23300 SMTF Tactical Training Building 2,099,089 1,818,713
ENG24-2 Concord B & C Roadway Reconstruction 7,227,603 1,494,316
ENG22-2 Blake Road Reconstruction 11,418,322 839,795
ENG23-1 Morningside C Roadway Reconstruction 5,275,805 376,916
ENG23-7 France Avenue Sidewalk 57th to Fuller Streets 524,375 270,941
ENG24-8 Brook Dr Culvert Replacement 875,141 243,490
P&R2308 Braemar Park Improvements 424,674 145,004
ENG21-6 Grandview Pedestrian Bridge 2,216,658 141,242
ENG22105 City Hall Solar PV 402,767 124,310
FAC24101 City Hall Roof Replacement 1,605,685 112,584
ENG24-1 Sanitary Sewer Lift Station #6 Replacement 7,573,836 86,649
ENG22-3 Morningside D & E Roadway Reconstruction 8,453,302 84,533
ENG21-4 City Hall Energy & Lighting Improvements 1,154,257 67,639
ENG21-3 Sanitary Sewer Lift Station #3 Replacement 1,607,000 32,974
ENG24-3 Southdale B Roadway Reconstruction 2,888,839 28,888
Total 19,797,718$
Contract
Amount
Remaining
Commitment
60
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS (CONTINUED)
Construction Commitments (Continued)
Commitments above that are significant to the applicable fund include the new SE Quad Fire Station
#2 project in the construction 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 3.80%. During the year ended
December 31, 2024, the City recognized $334,589 and $64,713 in lease revenue and interest revenue,
respectively, pursuant to these contracts.
NOTE 5 – LONG-TERM DEBT
A. General Obligation Bonds
The City has six types of bonded debt outstanding at December 31, 2024: general obligation bonds,
permanent improvement revolving bonds, housing improvement area bonds, tax increment financing
bonds, public project revenue bonds, and G.O. revenue bonds. The first type is payable from general
property taxes. The second type is payable primarily from special assessments with any deficiency to
be provided for by general property taxes. The third type is payable from special assessments on
properties that received common area housing improvements within the Edina West Condominium
Association Housing Improvement Area. The fourth type is payable from future tax increment
payments received. The fifth type is payable solely from annual appropriation lease payments
received from the City of Edina pursuant to a lease between the Edina Housing and Redevelopment
Authority and the City. The sixth type is payable primarily from enterprise revenue with any
deficiency to be provided for by general property taxes. The reporting entity's long-term debt is
segregated between the amounts to be repaid from governmental activities and amounts to be
repaid from business-type activities.
61
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
B. Components of Long-Term Liabilities
Issue Interest Original Final Balance
Date Rates Issue Maturity End of Year
Governmental Activities
General Obligation Bonds
General Obligation, 2016A - Refunding 7/6/2016 2.00-3.00% 3,635,000$ 2/1/2028 1,450,000$
General Obligation, 2017C - Refunding 12/14/2017 2.05-4.00% 8,955,000 2/1/2029 4,545,000
General Obligation Equipment Certificate, 2019A 6/13/2019 3.00-5.00% 2,805,000 2/1/2036 1,710,000
General Obligation, 2021B - Refunding 12/16/2021 5.00% 2,515,000 2/1/2030 2,320,000
General Obligation - Capital Improvement Plan, 2022B 8/25/2022 2.00% 17,000,000 2/1/2025 17,000,000
General Obligation - Capital Improvement Plan 2024A 8/1/2024 4.00-5.00% 16,660,000 2/1/2054 16,660,000
General Obligation, 2024B - Refunding 12/12/2024 4.00-5.00% 16,630,000 2/1/2054 16,630,000
Total general obligation bonds 68,200,000 60,315,000
Permanent Improvement Revolving (PIR) Bonds
Permanent Improvement Revolving, 2015A 7/9/2015 2.00-4.00%6,545,000 2/1/2032 3,870,000
Permanent Improvement Revolving, 2015A - Parking 7/9/2015 2.00-4.00% 2,495,000 2/1/2036 1,675,000
Permanent Improvement Revolving, 2016A 7/6/2016 2.00-3.00% 3,940,000 2/1/2033 2,545,000
Permanent Improvement Revolving, 2017A 6/29/2017 3.00-4.00% 1,995,000 2/1/2034 1,445,000
Permanent Improvement Revolving, 2018A 6/27/2018 3.00-4.00% 2,210,000 2/1/2035 1,720,000
Permanent Improvement Revolving, 2019A 6/13/2019 3.00-4.00% 2,195,000 2/1/2036 1,865,000
Permanent Improvement Revolving, 2020A 6/25/2020 2.00-4.00% 390,000 2/1/2037 350,000
Permanent Improvement Revolving, 2020B 12/30/2020 1.09% 1,601,000 2/1/2029 914,000
Permanent Improvement Revolving, 2021A 6/24/2021 2.00-4.00% 5,480,000 2/1/2043 5,200,000
Permanent Improvement Revolving, 2021B 12/16/2021 5.00% 1,280,000 2/1/2030 1,010,000
Permanent Improvement Revolving, 2022A 7/14/2022 5.00%2,145,000 2/1/2039 2,145,000
Permanent Improvement Revolving, 2023A 7/13/2023 4.00-5.00% 1,180,000 2/1/2040 1,180,000
Permanent Improvement Revolving, 2024A 8/1/2024 4.00-5.00% 2,800,000 2/1/2054 2,800,000
Total PIR bonds 34,256,000 26,719,000
Housing Improvement Area (HIA) Bonds
Housing Improvement Area, 2024C 12/12/2024 4.70-5.50% 3,065,000 2/1/2042 3,065,000
Total HIA bonds 3,065,000 3,065,000
Tax Increment Financing (TIF) Bonds
Tax Increment Financing, 2021A 6/24/2021 2.00-4.00% 7,545,000 2/1/2043 7,035,000
Tax Increment Financing, 2024A 8/1/2024 4.00-5.00% 5,375,000 2/1/2054 5,375,000
Total TIF bonds 12,920,000 12,410,000
Minnesota State Aid Street Bonds
MSA, 2022A 7/14/2022 5.00% 10,465,000 2/1/2039 9,980,000
Public Project Revenue Bonds
Public Project Revenue, 2014A 7/15/2014 2.00-3.625% 16,155,000 2/1/2035 10,035,000
Public Project Revenue, 2015A - Refunding 7/9/2015 2.50-3.00% 3,490,000 5/1/2026 725,000
Sales Tax Revenue, 2024B 12/12/2024 4.00-5.00% 11,090,000 2/1/2042 11,090,000
Total public project revenue bonds 30,735,000 21,850,000
Total bonded indebtedness - governmental activities 159,641,000$ 134,339,000$
Business-Type Activities
Revenue Bonds
Recreational Facility Bonds, Series 2015B 7/9/2015 2.00-3.25% 2,140,000 2/1/2031 1,115,000
Recreational Facility Bonds, Series 2017B 6/29/2017 3.00-4.00% 7,425,000 2/1/2033 4,680,000
Recreational Facility Bonds, Series 2017D - Refunding 12/20/2017 2.00% 1,640,000 2/1/2030 802,000
Recreational Facility Bonds, Series 2021C - Refunding 12/16/2021 2.00-3.00% 2,210,000 2/1/2033 1,800,000
Utility Revenue Bonds, Series 2014A 7/15/2014 2.00-3.00% 5,680,000 2/1/2024 -
Utility Revenue Bonds, Series 2015A 7/9/2015 2.00-4.00% 5,235,000 2/1/2025 590,000
Utility Revenue Bonds, Series 2016A 7/6/2016 2.00-3.00% 8,775,000 2/1/2027 2,885,000
Utility Revenue Bonds, Series 2017A 6/29/2017 3.00-4.00% 6,595,000 2/1/2028 2,950,000
Utility Revenue Bonds, Series 2018A 6/27/2018 3.00-4.00% 3,305,000 2/1/2029 1,790,000
Utility Revenue Bonds, Series 2019A 6/13/2019 3.00-4.00% 5,815,000 2/1/2036 3,825,000
Utility Revenue Bonds, Series 2020A 6/25/2020 2.00-4.00% 4,830,000 2/1/2031 3,570,000
Utility Revenue Bonds, Series 2022A 7/14/2022 5.00% 13,695,000 2/1/2039 13,030,000
Utility Revenue Bonds, Series 2023A 7/13/2023 4.00-5.00% 9,090,000 2/1/2040 9,090,000
Utility Revenue Bonds, Series 2024A 8/1/2024 4.00-5.00% 5,900,000 2/1/2054 5,900,000
Total bonded indebtedness - business-type activities 82,335,000$ 52,027,000$
62
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
B. Components of Long-Term Liabilities (Continued)
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
2025 18,850,000$ 1,675,882$ 1,940,000$ 926,436$ 1,135,000$ 672,590$
2026 1,930,000 1,692,275 2,058,000 858,701 1,535,000 823,819
2027 2,600,000 1,606,533 2,275,000 783,424 1,280,000 774,318
2028 2,695,000 1,510,301 2,346,000 702,234 1,330,000 725,288
2029 2,405,000 1,413,944 2,320,000 618,079 1,380,000 673,162
2030-2034 4,275,000 6,287,650 10,055,000 1,893,141 7,740,000 2,502,484
2035-2039 4,885,000 5,197,625 5,120,000 530,626 4,770,000 1,078,893
2040-2044 6,135,000 3,944,100 605,000 22,300 2,680,000 168,075
2045-2049 7,460,000 2,585,200 - - - -
2050-2054 9,080,000 936,400 - - - -
Total 60,315,000$ 26,849,910$ 26,719,000$ 6,334,941$ 21,850,000$ 7,418,629$
Governmental Activities
Revolving BondsGeneral Obligation Bonds Public Project Revenue Bonds
Permanent Improvement
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2025 270,000$ 434,750$ 510,000$ 486,250$ -$ 99,434$
2026 280,000 423,750 535,000 460,125 70,000 154,390
2027 290,000 412,350 560,000 432,750 95,000 149,853
2028 300,000 400,550 590,000 404,000 100,000 144,490
2029 315,000 388,250 620,000 373,750 105,000 138,853
2030-2034 1,760,000 1,754,975 3,590,000 1,359,750 625,000 597,738
2035-2039 4,360,000 1,255,850 3,575,000 368,375 800,000 416,418
2040-2044 4,835,000 346,300 - - 1,025,000 194,283
2045 - - - - 245,000 6,125
Total 12,410,000$ 5,416,775$ 9,980,000$ 3,885,000$ 3,065,000$ 1,901,584$
Governmental Activities
Tax Increment Financing Bonds MSA Bonds HIA Bonds
63
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
B. Components of Long-Term Liabilities (Continued)
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
2025 3,006$ 102$ -$ 15,000$ 124,297$ 3,986$
2026 2,563 26 - 15,000 - -
2027 - - - 15,000 - -
2028 - - - 15,000 - -
2029 - - 750,000 15,000 - -
Total 5,569$ 128$ 750,000$ 75,000$ 124,297$ 3,986$
Governmental Activities
Subscriptions LiabilityDirect Borrowing - Loans PayableLease Liability
Annual debt service requirements to maturity for the City's business-type activities debt are as
follows:
Year Ending
December 31, Principal Interest Principal Interest
2025 6,004,000$ 2,091,881$ 173,765$ 7,504$
2026 5,977,000 1,857,525 176,113 5,155
2027 6,345,000 1,611,744 156,863 2,839
2028 5,498,000 1,370,999 128,277 67
2029 4,936,000 1,153,404 3,272 23
2030-2034 18,147,000 3,131,380 - -
2035-2039 5,120,000 469,500 - -
Total 52,027,000$ 11,686,433$ 638,290$ 15,588$
Business-Type Activies
G.O. Improvement Bonds Lease Liability
64
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2024, was as follows:
Retirements
Beginning and Other Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds payable
General Obligation 28,585,000$ 33,290,000$ (1,560,000)$ 60,315,000$ 18,850,000$
Permanent improvement revolving 25,713,000 2,800,000 (1,794,000) 26,719,000 1,940,000
Public project revenue 11,860,000 11,090,000 (1,100,000) 21,850,000 1,135,000
Tax increment financing 7,295,000 5,375,000 (260,000) 12,410,000 270,000
Minnesota state aid streets 10,465,000 - (485,000) 9,980,000 510,000
Housing improvement area - 3,065,000 - 3,065,000 -
Less deferred amounts
Premiums on bonds 4,355,794 3,390,329 (682,802) 7,063,321 -
Total bonds payable 88,273,794 59,010,329 (5,881,802) 141,402,321 22,705,000
Loans payable 750,000 - - 750,000 -
Leases liability 8,508 - (2,939) 5,569 3,006
Subscription liability 364,772 12,390 (252,865) 124,297 124,297
Compensated absences 5,149,577 1,956,664 - 7,106,241 2,842,496
Total governmental activities
Long-term liabilities 94,546,651$ 60,979,383$ (6,137,606)$ 149,388,428$ 25,674,799$
Business-type activities
Bonds payable
General Obligation Revenue Bonds 51,834,000$ 5,900,000$ (5,707,000)$ 52,027,000$ 6,004,000$
Less deferred amounts
Premiums on bonds 4,189,796 721,525 (786,561) 4,124,760 -
Total bonds payable 56,023,796 6,621,525 (6,493,561) 56,151,760 6,004,000
Leases liability 18,166 779,443 (159,319) 638,290 173,765
Compensated absences 820,196 303,402 - 1,123,598 449,439
Total business-type activities
Long-term liabilities 56,862,158$ 7,704,370$ (6,652,880)$ 57,913,648$ 6,627,204$
On August 1, 2024, the City issued $2,800,000 of Permanent Improvement Revolving Bonds,
$1,880,000 of Utility Revenue Bonds for Sewer, $4,020,000 of Utility Revenue for Storm, $16,660,000
of Capital Improvement Bonds, and $5,375,000 of Tax Increment Financing Bonds, Series 2024A. On
December 12, 2024, the City issued $11,090,000 of Sales Tax Revenue Bonds and $16,630,000 of
Capital Improvement Bonds, Series 2024B. Additionally, on December 12, 2024, the City issued
$3,065,000 of General Obligation Housing Improvement Bonds, Series 2024C. The proceeds from
these bonds are being used to finance road reconstruction projects, related storm sewer portions,
watermain system improvements, and common area housing improvements within the Edina West
Condominium Association Housing Improvement area. The bonds have coupon rates ranging from
4.00% to 5.50%, with final maturity dates from February 1, 2042, to February 1, 2054.
The City leases various laundry and golf equipment for various terms under long-term, noncancelable
lease agreements. The leases expire at various dates through 2026.
The City has entered into subscription-based-information technology arrangements (SBITAs) for
various IT related applications. The SBITA arrangements expire at various dates through 2027.
65
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
C.Changes in Long-Term Liabilities (Continued)
Revenue Pledged
Future Revenue pledged for the payment of long-term debt is as follows:
Bonds Issue Use of Proceeds Type
2015B Recreational Facility Bonds Golf Course Improvements Golf 100% 2016-2031 1,239,953$ 176,194$ 6,292,009$ 2017B Recreational Facility Bonds Golf Course Improvements Golf 100 2018-2033 5,078,050 562,500 6,292,009
2017B Recreational Facility Bonds Pool Improvements Pool 100 2018-2027 302,500 98,100 1,117,510
2017D Recreational Facility Bonds Arena Improvements Arena 100 2018-2030 850,960 155,100 2,853,970
2021C Recreational Facility Bonds Arena Improvements Arena 100 2023-2033 1,552,675 173,875 2,853,970
2021C Recreational Facility Bonds Golf Dome Improvements Golf 100 2023-2033 436,125 88,275 6,292,009
2014A Utility Revenue Bonds Utility Infastructure Utility 100 2014-2024 - 639,450 31,943,249
2015A Utility Revenue Bonds Utility Infastructure Utility 100 2016-2025 598,850 594,000 31,943,249
2016A Utility Revenue Bonds Utility Infastructure Utility 100 2017-2027 2,988,219 993,738 31,943,249
2017A Utility Revenue Bonds Utility Infastructure Utility 100 2018-2028 3,145,550 781,000 31,943,249 2018A Utility Revenue Bonds Utility Infastructure Utility 100 2019-2029 1,944,125 393,925 31,943,249 2019A Utility Revenue Bonds Utility Infastructure Utility 100 2020-2036 4,425,375 739,625 31,943,249
2020A Utility Revenue Bonds Utility Infastructure Utility 100 2021-2031 3,908,950 553,800 31,943,249
2022A Utility Revenue Bonds Utility Infastructure Utility 100 2023-2038 17,981,250 1,333,125 31,943,249
2023A Utility Revenue Bonds Utility Infastructure Utility 100 2024-2040 11,438,350 465,465 31,943,249
2024A Utility Revenue Bonds Utility Infastructure Utility 100 2025-2054 7,822,500 - 31,943,249
Pledged
Revenue
Received
Revenue Pledged Current Year
Percent of
Total Debt
Service
Terms of
Pledge
Remaining
Principal and
Interest
Principal and
Interest Paid
66
City of Edina
Notes to Basic Financial Statements
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 2024 is computed
as follows:
December 31, 2024
Market Value (after fiscal disparities) 16,647,040,500$
Debt limit (3% of market value)499,411,215$
Amount of debt applicable to debt limit
Total bonded debt 186,366,000$
Less:
Public improvement revolving bonds (26,719,000)
Tax increment financing bonds (12,410,000)
MSA bonds (9,980,000)
Revenue bonds (52,027,000)
Total debt applicable to debt limit 85,230,000
Legal debt margin 414,181,215$
NOTE 7 – CONDUIT DEBT OBLIGATIONS
As of December 31, 2024, The City of Edina had four series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $25,180,000. The bonds are payable solely
from the 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 8 – PENSION PLANS
The City participates in various pension plans. Total pension expense for the year ended
December 31, 2024 was $3,684,411. The components of pension expense are noted in the following
plan summaries.
The General Fund and Utility Funds typically liquidate the liability related to the pensions.
Public Employees' Retirement Association
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by PERA. PERA's defined benefit pension plans are established and administered in
accordance with Minnesota Statutes Chapters 353, 353D, 353E, 353G, and 356. Minnesota Statutes
Chapter 356 defines each plan's financial reporting requirements. PERA's defined benefit pension
plans are tax qualified plans under Section 401(a) of the Internal Revenue Code.
67
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
A.Plan Description (Continued)
General Employees Retirement Plan
Membership in the General Plan includes employees of counties, cities, townships, schools in non-
certified positions, and other governmental entities whose revenues are derived from taxation, fees,
or assessments. Plan membership is required for any employee who is expected to earn more than
$425 in a month, unless the employee meets exclusion criteria.
Public Employees Police and Fire Plan
Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters
who meet the membership criteria defined in Minnesota Statutes § 353.64 and who are not earning
service credit in any other PERA retirement plan or a local relief association for the same service.
Employers can provide Police and Fire Plan coverage for part-time positions and certain other public
safety positions by submitting a resolution adopted by the City's governing body. The resolution must
state that the position meets plan requirements.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state Legislature. Vested, terminated employees who are
entitled to benefits, but are not receiving them yet, are bound by the provisions in effect at the time
they last terminated their public service. When a member is vested, they have earned enough
service credit to receive a lifetime monthly benefit after leaving public service and reaching an
eligible retirement age. Members who retire at or over their Social Security full retirement age with
at least one year of service qualify for a retirement benefit.
General Employees Plan Benefits
General Employees Plan requires three years of service to vest. Benefits are based on a member's
highest average salary for any 5 successive years of allowable service, age, and years of credit at
termination of service. Two methods are used to compute benefits for General Plan members.
Members hired prior to July 1, 1989, receive the higher of Step or Level formulas. Only the Level
formula is used for members hired after June 30, 1989. Under the Step formula, General Plan
members receive 1.2% of the highest average salary for each of the first 10 years of service and 1.7%
for each additional year. Under the Level formula, General Plan members receive 1.7% of the highest
average salary for all years of service. For members hired prior to July 1, 1989, a full retirement
benefit is available when age plus years of service equal 90 and normal retirement age is 65.
Members can receive a reduced requirement benefit as early as age 55 if they have three or more
years of service. Early retirement benefits are reduced by .25% for each month under age 65.
Members with 30 or more years of service can retire at any age with a reduction of .25% for each
month the member is younger than age 62. The Level formula allows General Plan members to
receive a full retirement benefit at age 65 if they were first hired before July 1, 1989 or at age 66 if
they were hired on or after July 1, 1989. Early retirement begins at age 55 with an actuarial
reduction applied to the benefit.
68
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
B. Benefits Provided (Continued)
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%. The 2024 annual increase was 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.
Police and Fire Plan Benefits
Benefits for the Police and Fire Plan members hired before July 1, 2010, are vested after three years
of service. Members hired on or after July 1, 2010, are 50% vested after five years of service and
100% vested after 10 years. After five years, vesting increase by 10% each full year of service until
members are 100% vested after 10 years. Police and Fire Plan members receive 3% of highest average
salary for all years of service. Police and Fire Plan members receive a full retirement benefit when
they are 55 and vested, or when their age plus their years of service equals 90 or greater if they
were first hired before July 1, 1989. Early retirement starts at age 50, and early retirement benefits
are reduced by 0.417% each month members are younger than age 55.
Benefit increases are provided to benefit recipients each January. The post-retirement increase is
fixed at 1%. 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.
General Employees Fund Contributions
General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2024, and the City was required to contribute 7.5% for General Plan members. The City's
contributions to the General Employees Fund for the year ended December 31, 2024, were
$1,948,579. The City's contributions were equal to the required contributions as set by state statute.
Police and Fire Fund Contributions
Police and Fire Plan members were required to contribute 11.8% of their annual covered salary in
fiscal year 2024, and the City was required to contribute 17.7% for Police and Fire Plan members.
The City's contributions to the Police and Fire Fund for the year ended December 31, 2024, were
$2,241,459. The City's contributions were equal to the required contributions as set by state statute.
69
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C.Pension Costs
General Employees Fund Pension Costs
At December 31, 2024, the City reported a liability of $10,869,570 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 $281,066.
City's proportionate share of the net pension liability 10,869,570$
State of Minnesota's proportionate share of the net pension
liability associated with the City 281,066
Total 11,150,636$
The net pension liability was measured as of June 30, 2024, 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, 2023, through
June 30, 2024, relative to the total employer contributions received from all of PERA's participating
employers. The City's proportionate share was 0.2940% at the end of the measurement period and
0.3062% for the beginning of the period.
For the year ended December 31, 2024, the City recognized pension expense of $1,232,267 for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $7,535 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $16 million to the General Employees Fund.
During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the
General Employees Fund. The State of Minnesota is not included as a non-employer contributing
entity in the General Employees Plan pension allocation schedule for the $170.1 million in direct
state aid because this contribution was not considered to meet the definition of a special funding
situation. The City recognized $500,123 for the year ended December 31, 2024 as revenue and an
offsetting reduction of net pension liability for its proportionate share of the State of Minnesota's on-
behalf contributions to the General Employees Fund.
70
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2024, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the
following sources:
Differences between expected and actual economic experience 1,032,429$ -$
Changes in actuarial assumptions 52,301 4,238,518
Net difference between projected and actual investment
earnings - 3,202,817
Changes in proportion 667,691 511,206
Contributions paid to PERA subsequent to the measurement
date 974,293 -
Total 2,726,714$ 7,952,541$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
The $974,293 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows
and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31,Amount
2025 (3,312,020)$
2026 (538,045)
2027 (1,516,969)
2028 (833,086)
Total (6,200,120)$
71
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Pension Costs (Continued)
Police and Fire Fund Pension Costs
At December 31, 2024, the City reported a liability of $11,667,381 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of June 30,
2024, 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, 2023, through June 30, 2024, relative to the total employer
contributions received from all of PERA's participating employers. The City's proportionate share was
0.8868% at the end of the measurement period and 0.8802% for the beginning of the period.
The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2024. The contribution consisted of $9 million in direct state aid that meets the
definition of a special funding situation, additional one-time direct state aid contribution of $19.4
million, and $9 million in supplemental state aid that does not meet the definition of a special
funding situation. Additionally, $9 million supplemental state aid was paid on October 1, 2024.
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. The State of Minnesota's
proportionate share of the net pension liability associated with the City totaled $444,756.
City's proportionate share of the net pension liability 11,667,381$
State of Minnesota's proportionate share of the net pension
liability associated with the City 444,756
Total 12,112,137$
For the year ended December 31, 2024, the City recognized pension expense of $2,451,784 for its
proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City
recognized $43,189 as pension expense (and grant revenue) for its proportionate share of the State
of Minnesota's contribution of $9 million to the Police and Fire Fund.
72
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Pension Costs (Continued)
Police and Fire Fund 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 $28.4 million in supplemental state aid because
this contribution was not considered to meet the definition of a special funding situation. The City
recognized $79,815 for the year ended December 31, 2024, as revenue and an offsetting reduction of
the net pension liability for its proportionate share of the State of Minnesota's on-behalf
contributions to the Police and Fire Fund.
At December 31, 2024, the City reported its proportionate share of the Police and Fire Plan's
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Differences between expected and actual economic experience 4,513,374$ -$
Changes in actuarial assumptions 12,634,001 17,051,455
Net difference between projected and actual investment
earnings - 3,774,695
Changes in proportion 290,177 7,030
Contributions paid to PERA subsequent to the measurement
date 1,120,730 -
Total 18,558,282$ 20,833,180$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
73
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
C. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
The $1,120,730 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2025. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2025 (484,104)$
2026 2,958,865
2027 (1,704,775)
2028 (4,453,588)
2029 287,974
Total (3,395,628)$
D. 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:
Asset Class
Domestic equity 35.5 % 5.10 %
International equity 16.5 5.30
Fixed income 25.0 0.75
Private markets 25.0 5.90
Total 100.0 %
Target Allocation
Long-Term
Expected Real
Rate of Return
74
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E.Actuarial Methods and Assumptions
The total pension liability in the June 30, 2024, 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 7.0%. 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 considered
reasonable by the actuary. An investment return of 7.0% is within that range.
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 and
1% for the Police and Fire Plan.
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.
Actuarial assumptions for the General Employees Plan are reviewed every four years. The General
Employees Plan was last reviewed in 2022. The assumption changes were adopted by the Board and
became effective with the July 1, 2023, actuarial valuation. The Police and Fire Plan was reviewed in
2024. PERA anticipates the experience study will be approved by the Legislative Commission on
Pensions and Retirement and become effective with the July 1, 2025 actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2024:
General Employees Fund
Changes in Actuarial Assumptions
Rates of merit and seniority were adjusted, resulting in slightly higher rates.
Assumed rates of retirement were adjusted as follows: Increase the rate of assumed
unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight
adjustments to early retirement rates for Tier 1 and Tier 2 members.
Minor increase in assumed withdrawals for males and females.
Lower rates of disability.
Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study.
Minor changes to form of payment assumptions for male and female retirees.
Minor changes to assumptions made with respect to missing participant data.
Changes in Plan Provisions
The workers' compensation offset for disability benefits was eliminated. The actuarial
equivalent factors updated to reflect the changes in assumptions.
75
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
E. Actuarial Methods and Assumptions (Continued)
Police and Fire Fund
Changes in Plan Provisions
The State contribution of $9.0 million per year will continue until the earlier of 1) both the
Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three
consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution
was previously due to expire after attaining a 90% funded status for one year.
The additional $9.0 million contribution will continue until the Police and Fire Plan is fully
funded for a minimum of three consecutive years on an actuarial value of assets basis, or
July 1, 2048, whichever is earlier. This contribution was previously due to expire upon
attainment of fully funded status on an actuarial value of assets basis for one year (or July 1,
2048 if earlier).
F. Discount Rate
The discount rate used to measure the total pension liability in 2024 was 7.0%. The projection of
cash flows used to determine the discount rate assumed that contributions from Plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary
net positions of the General Employees and Police and Fire Plans were projected to be available to
make all projected future benefit payments of current Plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
G. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as
what the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Discount Discount
Rate (6.0%) Rate (7.0%) Rate (8.0%)
City's proportionate share of
the General Employees Fund
net pension liability 23,740,962$ 10,869,570$ 281,736$
1% Decrease in Current 1% Increase in
Discount Discount Discount
Rate (6.0%) Rate (7.0%) Rate (8.0%)
City's proportionate share of
the Police and Fire Fund
net pension liability 27,572,305$ 11,667,381$ (500,312)$
76
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
H. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained on the Internet at www.mnpera.org.
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
expense. Minnesota Statues, 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.
Employer contributions for volunteer personnel may be a unit value for each call or period of alert
duty. Employees who are paid for their service 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 share 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 2024 were:
Contribution Amount Percentage of Covered Payroll
Employee Employer Employee Employer Required Rate
3,360$ 3,360$ 5%5%5%
77
City of Edina
Notes to Basic Financial Statements
NOTE 9 – 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 67 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, 2025. The required contribution rate is $1.25 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, 2024 were $140,064. 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.
NOTE 10 – POST EMPLOYMENT HEALTH CARE 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 post-employment benefits
are based on contractual agreements with employee groups. Eligibility for these benefits is based on
years of service and/or minimum age requirements. These contractual agreements do not include
any specific contribution or funding requirements. The plan does not issue a publicly available
financial report. No plan assets are accumulated in a trust that meets the criteria in paragraph 4 of
GASB Statement No. 75.
B. Benefits Provided
All retirees of the City 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.
78
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
B. Benefits Provided (Continued)
For police officers and firefighters disabled in the line-of-duty, Minnesota Statues 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 $190,465. Total OPEB liability will be paid by the general fund and enterprise funds.
D. Members
Membership in the plan consisted of the following as of the latest actuarial valuation:
Total employees without coverage 33
Employees with coverage 310
Total 343
E. Actuarial Assumptions
The total OPEB liability was determined by an actuarial valuation as of December 31, 2023, using the
following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Discount Rate 3.77%
Salary increases including inflation Based on the PERA Plan in which the
employee is a participant.
Healthcare cost trend increases 7.75% for FY2024, gradually decreasing over
ten years to an ultimate rate of 4.0% in
FY2043 and later years.
Mortality assumption PERA Coordinated: Rates from the most
recent PERA experience study from
July 1, 2018 through June 30, 2022.
PERA Police and Fire: Rates from the most
recent PERA experience study from
July 1, 2019 through June 30, 2023.
Key Methods and Assumptions Used in Valuation of Total OPEB Liability
79
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
E. Actuarial Assumptions (Continued)
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 3.77%, 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 4.05%.
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 40%. Married future retirees electing spouse coverage
is assumed to range from 40% to 60% based on classification of employee.
F.Total OPEB Liability
The City's total OPEB liability was determined by an actuarial valuation as of December 31, 2023.
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2024 3,279,111$
Changes for the year
Service cost 313,990
Interest 141,664
Differences between expected and actual
economic experience 559,438
Changes of assumptions 465,916
Benefit payments (190,465)
Net changes 1,290,543
Balances at December 31, 2024 4,569,654$
80
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
F. Total OPEB Liability (Continued)
Assumption changes since the prior measurement date include the following:
The discount rate was changed from 4.05% to 3.77%
Medical trend was updated based on recently published trend model and trend surveys to
better reflect future anticipated experience
Medical per capital claims tables were updated based on recent experience and demographics
Future retiree participation rates were updated from 55% to 40% based on analysis of past
plan experience
Future retiree medical plan blending was updated based on an analysis of medical plan
election rates as of the valuation date
G. OPEB Liability Sensitivity
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 calculate using a discount rate that is 1 percentage point lower or 1
percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Rate Discount Rate Discount Rate
(2.77%) (3.77%) (4.77%)
4,192,927$ 4,569,654$ 4,980,798$
Total OPEB Liability/(Asset)
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% lower and 1%
higher than the current healthcare cost trend rates.
1% Decrease in Current 1% Increase in
Trend Rate Trend Rate Trend Rate(6.8% Decreasing to
3.0%)
(7.8% Decreasing to
4.0%)
(8.8% Decreasing to
5.0%)
5,272,619$ 4,569,654$ 3,980,131$
Total OPEB Liability/(Asset)
81
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
H.OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2024, the City recognized OPEB expense of $406,150. At
December 31, 2024, the City reported deferred outflows of resources and deferred inflows of
resources as shown below.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 1,564,765$ 953,162$
Changes in actuarial assumptions 612,833 1,006,736
Contributions made subsequent to the measurement date 106,460 -
Total 2,284,058$ 1,959,898$
A total of $106,460 reported as deferred outflows of resources related to OPEB resulting from city
contributions subsequent to the measurement date will be recognized as a reduction of the total
OPEB liability in the year ending December 31, 2025. Other amounts reported as deferred outflows
and inflows of resources related to the plan will be recognized in pension expense as follows:
OPEB
Expense
(49,504)$
(49,504)
(53,975)
(49,511)
(26,481)
446,675
Total 217,700$
2026
Year Ending
December 31,
2027
2028
2029
Thereafter
2025
82
City of Edina
Notes to Basic Financial Statements
NOTE 11 – FUND BALANCES
A. Classifications
At December 31, 2024, a summary of the City's governmental fund balance classifications are as
follows:
General HRA Debt Service Construction Nonmajor
Fund Fund Fund Fund Funds Total
Fund balances
Nonspendable 157,932$ -$ -$ -$ 12,960$ 170,892$
Restricted
Park Dedication 58,086 - - - - 58,086
Tax Increments - 23,967,622 - - - 23,967,622
Affordable Housing - 10,615,700 - - - 10,615,700
Debt Service - - 24,354,318 - - 24,354,318
Capital Projects - - - 46,999,685 - 46,999,685
Pedestrian and Cyclist
Improvements - - - - 260,214 260,214
Forfeitures - - - - 988,952 988,952
Donations - - - - 120,162 120,162
Conservation and
Sustainability
Initiatives - - - - 1,029,032 1,029,032
Public Safety - - - - 2,293,448 2,293,448
Opioid Epidemic Response - - - - 237,052 237,052
Total restricted 58,086 34,583,322 24,354,318 46,999,685 4,928,860 110,924,271
Assigned
Compensated Absences 2,842,496 - - - - 2,842,496
Budget Stabilization 2,327,722 - - - - 2,327,722
Art and Culture 76,928 - - - - 76,928
Special Projects - - - 6,313,941 - 6,313,941
Equipment - - - 3,085,853 - 3,085,853
Total assigned 5,247,146 - - 9,399,794 - 14,646,940
Unassigned 25,474,747 - - - (95,754) 25,378,993
Total fund balances 30,937,911$ 34,583,322$ 24,354,318$ 56,399,479$ 4,846,066$ 151,121,096$
Major Funds
B. Unassigned Fund Balance
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, 2024, the City has $25,474,747 of unassigned fund balance in the general fund, or
63.97% of 2025 budgeted property tax revenue. This amount is $3,129,427 above the top of the goal
identified in the policy.
83
City of Edina
Notes to Basic Financial Statements
NOTE 12 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Transfers Out General Debt Service Construction Liquor Aquatic Center Golf Course Arena
Nonmajor
Enterprise
Internal Service
Funds Total
General -$ -$ 530,659$ -$ -$ -$ -$ 200,000$ -$ 730,659$
Housing and Redevelopment
Authority - 467,050 - - - - - - - 467,050
Construction Fund - 2,866,413 - - - - - - - 2,866,413
Utilities Fund 222,460 - - 4,916 14,941 67,160 59,850 92,868 17,684 479,879
Liquor Fund - - - - - - 350,000 650,000 - 1,000,000
Total 222,460$ 3,333,463$ 530,659 4,916 14,941 67,160$ 409,850$ 942,868$ 17,684$ 5,544,001$
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 included the following:
1. The Liquor Fund transferred $300,000, $350,000, and $350,000 to the Art Center Fund,
Braemar Arena Fund, and Centennial Lakes Fund, respectively.
2. General Fund transferred $530,659 to the Construction Fund to fund the capital improvement
program, as planned in the 2024 budget.
3. The Housing and Redevelopment Authority Fund and Construction Fund transferred $467,050
and $2,866,413 of PIR assessment revenue to the debt service fund for related debt
payments, respectively.
4. The Utilities Fund transferred a total of $479,879 to the General Fund, other Enterprise
funds, and internal service funds to offset the costs of internal utilities.
NOTE 13 – TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are administering authorities for the
following Tax Increment Districts:
District No. 1203 (Centennial Lakes) is a decertified redevelopment district.
District No. 1208-1209-1210 (Southdale #2) is a decertified economic development district.
District No. 1211 (Pentagon Park) is a redevelopment district established in 2014 pursuant to
Minnesota Statutes with a termination date of 2043.
District No. 1212-1213 (Grandview 2) is a redevelopment district established in 2016 pursuant to
Minnesota Statutes with a termination date of 2045.
District No. 1214 (66 West) is an affordable housing district established in 2016 pursuant to Minnesota
Statutes with a termination date of 2044.
District No. 1215 (50th & France 2) is a redevelopment district established in 2017 pursuant to
Minnesota Statutes with a termination date of 2045.
District No. 1216 (44th & France 2) is a renewal and renovation district established in 2018 pursuant
to Minnesota Statutes with a termination date of 2036.
District No. 1217 (West 76th Street) is a special affordable housing district established in 2018
pursuant to Minnesota Statutes with a termination date of 2042.
84
City of Edina
Notes to Basic Financial Statements
NOTE 13 – TAX INCREMENT DISTRICTS (CONTINUED)
District No. 1218 (72nd & France) is a decertified redevelopment district.
District No. 1219 (Amundson Ave) is a special affordable housing district established in 2019 pursuant
to Minnesota Statutes with a termination date of 2042.
District No. 1220 (4040 W. 70th Street) is a special affordable housing district established in 2021
pursuant to Minnesota Statutes with a termination date of 2045.
District No. 1221 (70th & France) is a renewal and renovation district established in 2022 pursuant to
Minnesota Statutes with a termination date of 2041.
District No. 1222 (Eden Willson) is a redevelopment district established in 2021 pursuant to Minnesota
Statutes with a termination date of 2050.
District No. 1223 (72nd & France #2) is a redevelopment district established in 2023 pursuant to
Minnesota Statutes with a termination date of 2051.
The following table reflects tax capacity values of active TIF Districts as of December 31, 2024:
Pentagon
Park Grandview 2 66 West
50th and 44th and W. 76th Amundson 70th and 72nd and
France 2 France 2 Street Ave West 70th Franch Eden Wilson France
TIF #1211 TIF #1212 TIF #1214 TIF #1215 TIF #1216 TIF #1217 TIF #1219 TIF #1220 TIF #1221 TIF #1222 TIF #1223 Total
Original Tax Capacity 691,608$ 39,890$ 15,315$ 57,986$ 29,735$ 16,364$ 6,637$ 69,270$ 302,160$ 38,758$ 217,006$ 1,484,729$ Current Tax Capacity 1,435,113 666,196 29,797 871,228 271,951 53,714 58,072 45,638 302,160 217,506 3,951,375
Tax Capacity
Change 743,505 626,306 14,482 813,242 242,216 37,350 51,435 (23,632) - 500 2,466,646
Retained CapturedTax Capacity 743,505$ 626,306$ 14,482$ 813,242$ 242,216$ 37,350$ 51,435$ (23,632)$ $ - 500 2,466,646$
NOTE 14 – 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 2024.
(38,758)
$ (38,758) $
85
City of Edina
Notes to Basic Financial Statements
NOTE 14 – 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, 2024.
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
material effect on the financial statements.
NOTE 15 – JOINT VENTURES AND JOINTLY GOVERNED ORGANIZATIONS
A. Joint Ventures
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 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.
NOTE 16 – RELATED PARTY TRANSACTIONS
The City pays an annual membership fee to 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, 2024, the City paid a total of
$87,472 in memberships fees to the PSTF, equal to 20.02% of membership fees collected for the
year.
86
City of Edina
Notes to Basic Financial Statements
NOTE 17 – RESTATEMENTS AND ADJUSTMENTS OF BEGINNING NET POSITION AND FUND BALANCE
For the year ended December 31, 2024, the City implemented Implementation Guide No. 2021-1-
Amending Capitalization Requirements. This resulting in an increase in governmental capital assets,
net of accumulated depreciation of $284,303 and business-type capital assets, net of accumulated
depreciation of $364,018.
Utilities Golf Course Arena
Nonmajor
Enterprise
Funds
Internal
Service Funds
Governmental
Activities
Business-Type
Activities
12/31/2023, as previously
reported 119,798,267$ 3,258,420$ 3,018,045$ 9,765,807$ 4,892,254$ 212,918,469$ 141,998,293$
Book value of group
asset additions 270,953 84,196 6,633 2,236 112,674 284,303 364,018
12/31/2023, as adjusted
or restated 120,069,220$ 3,342,616$ 3,024,678$ 9,768,043$ 5,004,928$ 213,202,772$ 142,362,311$
Reporting Units Affected by Adjustments to and Restatements of Beginning Balances
Government-WideEnterprise Funds
87
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88
REQUIRED SUPPLEMENTARY INFORMATION
See notes to required supplementary information. 89
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2024
Original Final Actual Amounts
Revenues
Taxes
Property taxes 43,744,165$ 43,744,165$ 43,048,860$ (695,305)$
Franchise taxes 1,100,000 1,100,000 716,553 (383,447)
Lodging tax 20,000 20,000 30,240 10,240
Total taxes 44,864,165 44,864,165 43,795,653 (1,068,512)
Licenses and permits 5,564,980 5,564,980 5,929,040 364,060
Intergovernmental
Federal 1,012,384 1,012,384 1,559,016 546,632
State
Municipal state aid 195,000 195,000 195,000 -
Health programs 230,630 230,630 200,991 (29,639)
Fire aid 472,500 472,500 577,180 104,680
Police aid 780,000 780,000 653,713 (126,287)
Other grants and aids 200,000 200,000 277,846 77,846
Total intergovernmental revenue 2,890,514 2,890,514 3,463,746 573,232
Charges for services
Administration 20,200 20,200 90 (20,110)
Communications and technology 50,220 50,220 71,388 21,168
Finance 1,870,356 1,870,356 1,813,668 (56,688)
Public works - - 660 660
Engineering 61,800 61,800 298,878 237,078
Police 929,800 929,800 1,520,125 590,325
Fire 2,615,100 2,615,100 2,722,208 107,108
Parks and recreation 787,000 787,000 764,343 (22,657)
Community development 65,000 65,000 560,863 495,863
Total charges for services 6,399,476 6,399,476 7,752,223 1,352,747
Fine and forfeitures 350,000 350,000 621,837 271,837
Miscellaneous
Investment income 250,000 250,000 1,095,116 845,116
Rental of property 446,050 446,050 465,411 19,361
Other 19,000 19,000 178,730 159,730
Total miscellaneous 715,050 715,050 1,739,257 1,024,207
Total revenues 60,784,185 60,784,185 63,301,756 2,517,571
Variance with
Final Budget
Budgeted Amounts
See notes to required supplementary information. 90
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2024
Original Final Actual Amounts
Expenditures
Current
General government
Administration
Personal services 1,580,285$ 1,580,285$ 1,626,943$ 46,658$
Contractual services 1,190,020 1,190,020 798,083 (391,937)
Commodities 100,000 100,000 40,933 (59,067)
Internal services 239,760 239,760 239,760 -
Total administration 3,110,065 3,110,065 2,705,719 (404,346)
Communications
Personal services 1,049,381 1,049,381 1,066,553 17,172
Contractual services 397,930 397,930 379,400 (18,530)
Commodities 34,500 34,500 22,290 (12,210)
Internal services 179,304 179,304 179,304 -
Total communications 1,661,115 1,661,115 1,647,547 (13,568)
Human resouces
Personal services 1,506,209 1,506,209 1,438,964 (67,245)
Contractual services 220,320 220,320 181,943 (38,377)
Commodities 36,500 36,500 35,331 (1,169)
Internal services 69,348 69,348 69,348 -
Total human resources 1,832,377 1,832,377 1,725,586 (106,791)
Finance
Personal services 1,303,938 1,303,938 1,380,068 76,130
Contractual services 853,070 853,070 857,557 4,487
Commodities 16,500 16,500 44,347 27,847
Internal services 96,072 96,072 96,072 -
Total finance 2,269,580 2,269,580 2,378,044 108,464
Community development
Personal services 1,956,016 1,956,016 1,990,782 34,766
Contractual services 348,730 498,730 626,365 127,635
Commodities 11,500 11,500 1,098 (10,402)
Internal services 202,812 202,812 202,812 -
Total community development 2,519,058 2,669,058 2,821,057 151,999
Total general government 11,392,195 11,542,195 11,277,953 (264,242)
Public safety
Police
Personal services 14,064,512 14,064,512 13,229,409 (835,103)
Contractual services 1,324,665 1,324,665 1,180,076 (144,589)
Commodities 160,000 160,000 253,427 93,427
Internal services 1,743,240 1,743,240 1,743,240 -
Total police 17,292,417 17,292,417 16,406,152 (886,265)
Fire
Personal services 10,487,604 10,487,604 9,808,734 (678,870)
Contractual services 1,015,805 1,015,805 1,038,233 22,428
Commodities 396,668 396,668 218,625 (178,043)
Internal services 788,004 788,004 788,004 -
Total fire 12,688,081 12,688,081 11,853,596 (834,485)
Budgeted Amounts
Variance with
Final Budget
See notes to required supplementary information. 91
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2024
Original Final Actual Amounts
Expenditures (Continued)
Current (continued)
Public safety (continued)
Public health
Personal services 718,909$ 718,909$ 741,006$ 22,097$
Contractual services 597,462 597,462 633,197 35,735
Commodities 8,300 8,300 12,971 4,671
Internal services 86,880 86,880 86,880 -
Total public health 1,411,551 1,411,551 1,474,054 62,503
Total public safety 31,392,049 31,392,049 29,733,802 (1,658,247)
Public works
Public works
Personal services 3,089,060 3,089,060 3,148,031 58,971
Contractual services 1,223,106 1,223,106 487,868 (735,238)
Commodities 1,217,000 1,217,000 825,024 (391,976)
Internal services 1,399,884 1,399,884 1,399,884 -
Total public works 6,929,050 6,929,050 5,860,807 (1,068,243)
Engineering
Personal services 2,776,610 2,776,610 2,651,248 (125,362)
Contractual services 1,535,410 1,535,410 1,394,758 (140,652)
Commodities 92,700 92,700 69,679 (23,021)
Internal services 458,340 458,340 458,340 -
Total engineering 4,863,060 4,863,060 4,574,025 (289,035)
Total public works 11,792,110 11,792,110 10,434,832 (1,357,278)
Parks and recreation
Parks and recreation
Personal services 4,671,131 4,671,131 4,334,688 (336,443)
Contractual services 1,973,030 1,973,030 1,682,341 (290,689)
Commodities 447,900 447,900 433,212 (14,688)
Internal services 702,516 702,516 702,516 -
Total parks and recreation 7,794,577 7,794,577 7,152,757 (641,820)
Total parks 7,794,577 7,794,577 7,152,757 (641,820)
Capital outlay
General government 374,554 374,554 216,055 (158,499)
Public works - - 55,787 55,787
Parks - - 61,479 61,479
Total capital outlay 374,554 374,554 333,321 (41,233)
Debt service
Principal - - 26,676 26,676
Interest and fiscal changes - - 170 170
Total debt service - - 26,846 26,846
Total expenditures 62,745,485 62,895,485 58,959,511 (3,935,974)
Budgeted Amounts
Variance with
Final Budget
See notes to required supplementary information. 92
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2024
Original Final Actual Amounts
Expenditures (Continued)
Excess of revenues over
(under) expenditures (1,961,300)$ (2,111,300)$ 4,342,245$ 6,453,545$
Other Financing Sources
Proceeds from sale of capital asset - - 24,286 24,286
Transfers in 156,300 156,300 222,460 66,160
Transfers out (200,000) (200,000) (730,659) (530,659)
Total other financing
sources (43,700) (43,700) (483,913) (440,213)
Net change in fund balances (2,005,000)$ (2,155,000)$ 3,858,332 6,013,332$
Fund Balance
Beginning of year 27,079,579
End of year 30,937,911$
Budgeted Amounts
Variance with
Final Budget
See notes to required supplementary information. 93
Original Final Actual Amounts
Revenues
Property taxes 251,700$ 251,700$ 247,883$ (3,817)$
Tax increments 2,015,000 2,015,000 3,176,176 1,161,176
Special assessments - - 35,228 35,228
Intergovernmental - - 558,542 558,542
Charges for services 800,000 800,000 127,945 (672,055)
Investment income 430,000 430,000 653,454 223,454
Total revenues 3,496,700 3,496,700 4,799,228 1,302,528
Expenditures
Current
Personal Services 172,868 172,868 174,404 1,536
Contractual Services 6,099,640 6,099,640 3,005,268 (3,094,372)
Commodities 300 300 1,970 1,670
Capital outlay
General government 450,000 450,000 3,374,619 2,924,619
Total expenditures 6,722,808 6,722,808 6,556,261 (166,547)
Net change in fund balances (3,226,108) (3,226,108) (1,757,033) 1,469,075
- - 8,321,598 8,321,598
- - 478,907 478,907
Other Financing Sources (Uses)
Bonds issued
Premium on bonds issued
Transfers out - - (467,050) (467,050)
Total other financing
sources (uses)- - 8,333,455 8,333,455
Net change in fund balances (3,226,108)$ (3,226,108)$ 6,576,422 9,802,530$
Fund Balance
Beginning of year 28,006,900
End of year 34,583,322$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Housing and Redevelopment Authority (HRA) Fund
Year Ended December 31, 2024
See notes to required supplementary information. 94
City's Covered-
employee
Payroll
2024 0.2940% 10,869,570$ 281,066$ 11,150,636$ 24,884,240$ 43.68% 89.08%
2023 0.3093% 17,149,631 472,717 17,622,348 23,883,249 71.81% 83.10%
2022 0.2927% 22,973,466 673,551 23,647,017 21,857,115 105.11% 76.67%
2021 0.2911% 12,320,807 379,625 12,700,432 20,898,307 58.96% 87.00%
2020 0.2764% 16,405,731 511,142 16,916,873 19,847,440 82.66% 79.06%
2019 0.2694% 14,745,577 462,813 15,208,390 19,063,827 77.35% 80.23%
2018 0.2679% 14,713,374 482,647 15,196,021 18,007,013 81.71% 79.53%
2017 0.2772% 17,519,302 220,299 17,739,601 17,858,560 98.10% 75.90%
2016 0.2656% 21,349,748 278,868 21,628,616 16,481,973 129.53% 68.91%
2015 0.2683% 13,765,652 - 13,765,652 15,508,173 88.76% 78.20%
For Fiscal Year
Ended June
30,
City's
Proportion of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset)
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liability and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City
City's Covered-
employee
Payroll
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered-
employee
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
2024 0.8868% 11,667,381$ 444,756$ 12,112,137$ 12,280,463$ 95.01% 90.17%
2023 0.8802% 15,199,910 612,293 15,812,203 11,559,197 131.50% 86.47%
2022 0.8758% 38,111,357 1,664,806 39,776,163 10,638,687 358.23% 70.53%
2021 0.8688% 6,706,215 301,506 7,007,721 10,268,277 65.31% 93.66%
2020 0.8704% 11,472,803 270,277 11,743,080 9,819,457 116.84% 87.19%
2019 0.8479% 9,026,752 - 9,026,752 9,151,062 98.64% 89.26%
2018 0.8022% 8,550,626 - 8,550,626 8,454,142 101.14% 88.84%
2017 0.8110% 10,949,465 - 10,949,465 8,322,605 131.56% 85.43%
2016 0.7990% 32,065,260 - 32,065,260 7,699,821 416.44% 63.88%
2015 0.0807% 9,169,408 - 9,169,408 7,797,803 117.59% 86.61%
Last Ten Years
Fiscal
Year Ended
June 30,
State's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
Associated
with the City
City's
Proportionate
Share of the
Net Pension
Liability and
the State's
Proportionate
Share of the
Net Pension
Liability
Associated
with the City
Public Employees Police and Fire Retirement Fund
Schedule of City's Proportionate Share
of Net Pension Liability
City's
Proportionate
Share
(Percentage)
of the Net
Pension
Liability
(Asset)
City's
Proportionate
Share
(Amount) of
the Net
Pension
Liability
(Asset)
City's
Proportionate
Share of the
Net Pension
Liability
(Asset) as a
Percentage of
its Covered-
employee
Payroll
Plan Fiduciary
Net Position
as a
Percentage of
the Total
Pension
Liability
City of Edina
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
See notes to required supplementary information. 95
2024 1,948,579$ 1,948,579$ -$ 25,981,053$ 7.50%
2023 1,866,318 1,866,318 - 24,884,240 7.50%
2022 1,696,759 1,696,759 - 22,623,453 7.50%
2021 1,607,199 1,607,199 - 21,429,320 7.50%
2020 1,518,494 1,518,494 - 20,246,587 7.50%
2019 1,471,059 1,471,059 - 19,614,120 7.50%
2018 1,378,743 1,378,743 - 18,383,240 7.50%
2017 1,317,596 1,317,596 - 17,567,947 7.50%
2016 1,265,817 1,265,817 - 16,877,560 7.50%
2015 1,248,845 1,248,845 - 16,651,267 7.50%
2024 2,241,459$ 2,241,459$ -$ 12,663,610$ 17.70%
2023 2,173,642 2,173,642 - 12,280,463 17.70%
2022 1,953,054 1,953,054 - 11,034,203 17.70%
2021 1,850,353 1,850,353 - 10,453,972 17.70%
2020 1,784,694 1,784,694 - 10,083,017 17.70%
2019 1,595,304 1,595,304 - 9,847,556 16.20%
2018 1,399,053 1,399,053 - 8,625,481 16.22%
2017 1,335,917 1,335,917 - 8,246,401 16.20%
2016 1,272,485 1,272,485 - 7,854,846 16.20%
2015 1,268,476 1,268,476 - 7,830,099 16.20%
Schedule of City Contributions -
Public Employees Police and Fire Retirement Fund
Fiscal Year
Ending
December 31,
Statutorily
Required
Contribution
Contributions
in Relation to
the Statutorily
Required
Contributions
City's Covered-
employee
Payroll
Fiscal Year
Ending
December 31,
Contributions
as a
Percentage of
Covered-
employee
Payroll
Contribution
Deficiency
(Excess)
Last Ten Years
City of Edina
Schedule of City Contributions -
General Employees Retirement Fund
Last Ten Years
Contribution
Deficiency
(Excess)
Contributions
in Relation to
the Statutorily
Required
Contributions
City's Covered-
employee
Payroll
Statutorily
Required
Contribution
Contributions
as a
Percentage of
Covered-
employee
Payroll
See notes to required supplementary information. 96
City of Edina
Notes to Required Supplementary Information
December 31, 2024
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 Statement 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
Finance 2,269,580$ 2,378,044$ 108,464$
Community Development 2,669,058 2,821,057 151,999
Public Safety
Public Health 1,411,551 1,474,054 62,503
Debt Service - 26,846 26,846
Excess expenditures in Finance are due to additional staffing in 2024. Remaining excess expenditures
were due to slightly higher than anticipated costs.
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.
97
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB
General Employees Fund
2024 Changes
Changes in Actuarial Assumptions
Rates of merit and seniority were adjusted, resulting in slightly higher rates.
Assumed rates of retirement were adjusted as follows: increase the rate of assumed
unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight
adjustments to early retirement rates for Tier 1 and Tier 2 members.
Minor increase in assumed withdrawals for males and females.
Lower rates of disability.
Continued use of Pub-2010 general mortality table with slight rate adjustments as
recommended in the most recent experience study.
Minor changes to form of payment assumptions for male and female retirees.
Minor changes to assumptions made with respect to missing participant data.
Changes in Plan Provisions
The workers' compensation offset for disability benefits was eliminated. The actuarial
equivalent factors updated to reflect the changes in assumptions.
2023 Changes
Changes in Actuarial Assumptions
The investment return assumption and single discount rate were changed from 6.5% to 7.0%.
Changes in Plan Provisions
An additional one-time direct state aid contribution of $170.1 million was contributed to the
Plan on October 1, 2023.
The vesting period of those hired after June 30, 2010, was changed from five years of
allowable service to three years of allowable service.
The benefit increase delay for early retirements on or after January 1, 2024, was eliminated.
A one-time, non-compounding benefit increase of 2.5% minus the actual 2024 adjustment will
be payable in a lump sum for calendar year 2024 by March 31, 2024.
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The mortality improvement scale was changed from scale MP-2019 to scale MP-2020.
Changes in Plan Provisions
There have been no changes since the prior valuation.
98
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
General Employees Fund (Continued)
2020 Changes
Changes in Actuarial Assumptions
The price inflation assumption was decreased from 2.5% to 2.25%.
The payroll growth assumption decreased from 3.25% to 3.0%.
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.
Assumed rates of retirement were changed as recommended in the June 30, 2019, experience
study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of
90 and early retirements.
Assumed rates of termination were changes as recommended in the June 30, 2019,
experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter.
Assumed rates of disability were changed as recommended in the June 30, 2019, experience
study. The change results in fewer predicted disability retirements for males and females.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for
disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the
Pub-2010 General/Teacher disabled annuitant mortality table, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint and Survivor
option changed from 35% to 45%. The assumed number of married female new retires electing
the 100% Joint and 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
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023, and 0.0% thereafter. Augmentation was eliminated for
privatizations occurring after June 30, 2020.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per
year thereafter to 1.25% per year.
99
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
General Employees Fund (Continued)
2018 Changes (Continued)
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Annual 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.
For retirements on or after January 1, 2024, the first benefit increase is delayed until the
retiree reaches normal retirement age. This does not apply to Rule of 90 retirees, disability
benefit recipients, or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
The CSA loads were changed from 0.8% for active members and 60% for vested and non-vested
deferred members. The revised CSA loads are now 0.0% for active member liability, 15% for
vested deferred member liability and 3% for non-vested deferred member liability.
The assumed annual 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
The State's contribution for the Minneapolis Employees Retirement Fund equals $16,000,000
in 2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund
changed from $21,000,000 to $31,000,000 in calendar years 2019 to 2031. The State's
contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement 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 future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, the inflation was decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
100
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
General Employees Fund (Continued)
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement 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 2.5% per year
thereafter.
Changes in Plan Provisions
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; the State's contribution of $6.0 million, which meets the special
funding situation definition, was due September 2015.
101
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund
2024 Changes
Changes in Plan Provisions
The State contribution of $9.0 million per year will continue until the earlier of 1) both the
Police and Fire Plan and the State Patrol Retirement Fund attain 90% funded status for three
consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The contribution
was previously due to expire after attaining a 90% funded status for one year.
The additional $9.0 million contribution will continue until the Police and Fire Plan is fully
funded for a minimum of three consecutive years on an actuarial value of assets basis, or
July 1, 2048, whichever is earlier. This contribution was previously due to expire upon
attainment of fully funded status on an actuarial value of assets basis for one year (or July 1,
2048 if earlier).
2023 Changes
Changes in Actuarial Assumptions
The investment return assumption was changed from 6.5% to 7.0%.
The single discount rate changed from 5.4% to 7.0%.
Changes in Plan Provisions
Additional one-time direct state aid contribution of 19.4 million will be contributed to the
Plan on October 1, 2023.
Vesting requirement for new hires after June 30, 2014, was changed from a graded 20-year
vesting schedule to a graded 10-year vesting schedule, with 50% vesting after five years,
increasing incrementally to 100% after 10 years.
A one-time, non-compounding benefit increase of 3.0% will be payable in a lump sum for
calendar year 2024 by March 31, 2024.
Psychological treatment is required effective July 1, 2023, prior to approval for a duty
disability benefit for a psychological condition relating to the member's occupation.
The total and permanent duty disability benefit was increased, effective July 1, 2023.
2022 Changes
Changes in Actuarial Assumptions
The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
The single discount rate was changed from 6.5% to 5.4%.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2021 Changes
Changes in Actuarial Assumptions
The investment return and single discount rates were changed from 7.5% to 6.5% for financial
reporting purposes.
The inflation assumption was changed from 2.5% to 2.25%.
The payroll growth assumption was changed from 3.25% to 3.0%.
The base mortality table for healthy annuitants and employees was changed from the RP-2014
table to the Pub-2010 Public Safety mortality table. The mortality improvement scale was
changed from MP-2019 to MP-2020.
102
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund (Continued)
2021 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
The base mortality table for disabled annuitants was changed from the RP-2014 healthy
annuitant mortality table (with future mortality improvement according to scale MP-2019) to
the Pub-2010 Public Safety disabled annuitant mortality table (with future mortality
improvement according to scale MP-2020).
Assumed rates of salary increase were modified as recommended in the July 14, 2020,
experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020, experience
study. The changes resulted in slightly more unreduced retirements and fewer assumed early
retirements.
Assumed rates of withdrawal were changed from select and ultimate rates to service-based
rates. The changes resulted in more assumed terminations.
Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49.
Overall, proposed rates resulted in more projected disabilities.
Assumed percent married for active female members was changed from 60% to 70%. Minor
changes to form of payment assumptions were applied.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2020 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2018 to MP-2019.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2019 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Annual increases were changed to 1.00% for all years, with no trigger.
An end date of July 1, 2048, was added to the existing $9.0 million state contribution.
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9.0 million
thereafter until the plan reaches 100% funding, or July 1, 2048, if earlier.
Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019,
and 11.80% of pay, effective January 1, 2020.
Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1,
2019, and 17.70% of pay, effective January 1, 2020.
103
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund (Continued)
2018 Changes (Continued)
Changes in Plan Provisions (Continued)
Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1,
2018.
Deferred augmentation was changed to 0.00%, effective January 1, 2019. Augmentation that
has already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions
Assumed salary increases were changed as recommended in the June 30, 2016, experience
study. The net effect is proposed rates that average 0.34% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The CSA load was 30% for vested and non-vested deferred members. The CSA has been
changed to 33% for vested members and 2% for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from
the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3% for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was
increased.
The assumed annual benefit increase rate was changed from 1% for all years to 1% per year
through 2064 and 2.5% thereafter.
The single discount rate was changed from 5.6% per annum to 7.5% per annum.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The single discount rate changed from 7.90% to 5.60%.
104
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund (Continued)
2016 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
The assumed future salary increases, payroll growth, and inflation was decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions
The assumed post-retirement 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.
Changes in Plan Provisions
The post-retirement 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%.
105
City of Edina
Notes to Required Supplementary Information
December 31, 2024
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Post Employment Health Care Plan
2024 Changes
Changes in Actuarial Assumptions
The discount rate changed from 4.05% to 3.77%.
2023 Changes
Changes in Actuarial Assumptions
The discount rate changed from 2.06% to 4.05%.
2022 Changes
Changes in Actuarial Assumptions
The discount rate changed from 2.12% to 2.06%.
2021 Changes
Changes in Actuarial Assumptions
The discount rate changed from 2.74% to 2.12%.
The payroll growth rate was changed from 3.25% to 2.50%
2020 Changes
Changes in Actuarial Assumptions
The discount rate changed from 4.09% to 2.74%.
The payroll growth rate was changed from 3.50% to 3.25%.
2019 Changes
Changes in Actuarial Assumptions
The discount rate changed from 3.44% to 4.09%.
2018 Changes
Changes in Actuarial Assumptions
The discount rate changed from 4.50% to 3.44%.
106
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107
SUPPLEMENTARY INFORMATION
108
(THIS PAGE LEFT BLANK INTENTIONALLY)
109
City of Edina
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are restricted to expenditures
for particular 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 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.
Public Safety Fund – This fund was established to account for the 2023 Omnibus tax bill that included
$210 million in one-time public safety aid to cities across the state. Unlike local government aid, this
aid cannot be used for general purposes but instead must be used to "provide public safety". The City
received $2,344,327 on December 26, 2023.
110
Community
Development
Block Grant Police
Braemar
Memorial
Pedestrian and
Cyclist Safety
Conservation
and
Sustainability
Opioid
Settlement Public Safety
Assets
Cash and investments -$ 1,029,355$ 119,238$ -$ 850,425$ 238,069$ 2,274,628$ 4,511,715$
Accrued interest - - 924 3,695 13,971 1,501 18,820 38,911
Accounts receivable - - - 364,632 262,407 - - 627,039
Due from other governments - - - - - 185,876 - 185,876
Prepaid expenses - 7,974 - - 4,986 - - 12,960
Total assets -$ 1,037,329$ 120,162$ 368,327$ 1,131,789$ 425,446$ 2,293,448$ 5,376,501$
Liabilities
Accounts payable 95,754$ 38,840$ -$ 62,151$ 27,386$ -$ -$ 224,131$
Contracts payable - - - 22,168 57,190 - - 79,358
Due to other funds - - - 17,494 - - - 17,494
Due to other governments - 1,563 - - - 2,428 - 3,991
Salaries and benefits payable - - - 6,300 13,195 - - 19,495
Unearned revenue - - - - - 90 - 90
Total liabilities 95,754 40,403 - 108,113 97,771 2,518 - 344,559
Deferred Inflows of Resources
Unavailable revenue - - - - - 185,876 - 185,876
Fund Balances
Nonspendable - 7,974 - - 4,986 - - 12,960
Restricted - 988,952 120,162 260,214 1,029,032 237,052 2,293,448 4,928,860
Unassigned (95,754) - - - - - - (95,754)
Total fund balances (95,754) 996,926 120,162 260,214 1,034,018 237,052 2,293,448 4,846,066
Total liabilities, deferred inflow of
resouces, and fund balances -$ 1,037,329$ 120,162$ 368,327$ 1,131,789$ 239,570$ 2,293,448$ 5,376,501$
Total
Nonmajor
Governmental
Funds
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2024
Special Revenue
City of Edina
111
Community
Development
Block Grant Police
Braemar
Memorial
Pedestrian and
Cyclist Safety
Conservation
and
Sustainability
Opioid
Settlement Public Safety
Revenues
Franchise Taxes -$ -$ -$ 1,185,467$ 905,653$ -$ -$ 2,091,120$
Intergovernmental - - - - - 129,349 - 129,349
Investment income - 569 12,112 27,980 72,068 5,512 53,633 171,874
Other revenues - 249,358 - - 62,646 - - 312,004
Total revenues - 249,927 12,112 1,213,447 1,040,367 134,861 53,633 2,704,347
Expenditures
Current
General government 95,754 - - - - - - 95,754
Public safety - 251,994 - - - 6,122 - 258,116
Public works - - - 167,974 597,199 - - 765,173
Parks - - 2,153 - - - - 2,153
Capital outlay
Public safety - 12,667 - - - - 107,350 120,017
Public works - - - 1,215,361 1,200,728 - - 2,416,089
Total expenditures 95,754 264,661 2,153 1,383,335 1,797,927 6,122 107,350 3,657,302
Net change in fund balances (95,754) (14,734) 9,959 (169,888) (757,560) 128,739 (53,717) (952,955)
Fund Balances
Beginning of year - 1,011,660 110,203 430,102 1,791,578 108,313 2,347,165 5,799,021
End of year (95,754)$ 996,926$ 120,162$ 260,214$ 1,034,018$ 237,052$ 2,293,448$ 4,846,066$
City of Edina
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2024
Total
Nonmajor
Governmental
Funds
Special Revenue
112
Original Final Actual Amounts
Revenues
Intergovernmental 150,000$ 150,000$ -$ (150,000)$
Expenditures
Current
General government 150,000 150,000 95,754 (54,246)
Net change in fund balances -$ -$ (95,754) (95,754)$
Fund Balance
Beginning of year -
End of year (95,754)$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Community Development Block Grant
Year Ended December 31, 2024
113
Original Final Actual Amounts
Revenues
Investment income 3,000$ 3,000$ 569$ (2,431)$
Miscellaneous revenues 225,000 225,000 249,358 24,358
Total revenues 228,000 228,000 249,927 21,927
Expenditures
Current
Public safety 147,500 147,500 251,994 104,494
Capital outlay
Public safety 20,000 20,000 12,667 (7,333)
Total expenditures 167,500 167,500 264,661 97,161
Net change in fund balances 60,500$ 60,500$ (14,734) (75,234)$
Fund Balance
Beginning of year 1,011,660
End of year 996,926$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Police
Year Ended December 31, 2024
114
Original Final Actual Amounts
Revenues
Investment income 1,000$ 1,000$ 12,112$ 11,112$
Miscellaneous revenues 2,500 2,500 - (2,500)
Total revenues 3,500 3,500 12,112 8,612
Expenditures
Current
Park and recreation 1,000 1,000 2,153 1,153
Net change in fund balances 2,500$ 2,500$ 9,959 7,459$
Fund Balance
Beginning of year 110,203
End of year 120,162$
Budgeted Amounts Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Braemar Memorial
Year Ended December 31, 2024
115
Original Final Actual Amounts
Revenues
Franchise taxes 1,230,000$ 1,230,000$ 1,185,467$ (44,533)$
Investment income 22,000 22,000 27,980 5,980
Total revenues 1,252,000 1,252,000 1,213,447 (38,553)
Expenditures
Current
Public works 243,032 243,032 167,974 (75,058)
Capital outlay
Public works 1,825,400 1,825,400 1,215,361 (610,039)
Total expenditures 2,068,432 2,068,432 1,383,335 (685,097)
Net change in fund balances (816,432)$ (816,432)$ (169,888) 646,544$
Fund Balance
Beginning of year 430,102
End of year 260,214$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Pedestrian and Cyclist Safety
Year Ended December 31, 2024
116
Original Final Actual Amounts
Revenues
Franchise taxes 980,000$ 980,000$ 905,653$ (74,347)$
Investment income 46,000 46,000 72,068 26,068
Miscellaneous revenues 20,000 20,000 62,646 42,646
Total revenues 1,046,000 1,046,000 1,040,367 (5,633)
Expenditures
Current
Public works 605,112 605,112 597,199 (7,913)
Capital outlay
Public works 600,000 600,000 1,200,728 600,728
Total expenditures 1,205,112 1,205,112 1,797,927 592,815
Net change in fund balances (159,112)$ (159,112)$ (757,560) (598,448)$
Fund Balance
Beginning of year 1,791,578
End of year 1,034,018$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Conservation and Sustainability
Year Ended December 31, 2024
117
Original Final Actual Amounts
Revenues
Intergovernmental 29,314$ 29,314$ 129,349$ 100,035$
Investment income 2,000 2,000 5,512 3,512
Total revenues 31,314 31,314 134,861 103,547
Expenditures
Current
Public safety 29,314 29,314 6,122 (23,192)
Net change in fund balances 2,000$ 2,000$ 128,739 126,739$
Fund Balance
Beginning of year 108,313
End of year 237,052$
Budgeted Amounts Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Opioid Settlement
Year Ended December 31, 2024
118
Original Final Actual Amounts
Revenues
Investment income -$ -$ 53,633$ 53,633$
Expenditures
Capital outlay
Public safety - - 107,350 107,350
Net change in fund balances -$ -$ (53,717) (53,717)$
Fund Balance
Beginning of year 2,347,165
End of year 2,293,448$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Special Revenue Fund - Public Safety Fund
Year Ended December 31, 2024
119
City of Edina
Major Governmental Funds
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, and Public Project Revenue.
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.
120
Original Final Actual Amounts
Revenues
Property taxes 3,471,700$ 3,471,700$ 3,415,010$ (56,690)$
Special assessments - - 187,805 187,805
Intergovernmental - - 996,125 996,125
Investment income - - 10,534 10,534
Total revenues 3,471,700 3,471,700 4,609,474 1,137,774
Expenditures
Debt service
Principal 5,199,000 5,199,000 5,199,000 -
Interest and other charges 2,681,183 2,681,183 2,749,731 68,548
Total expenditures 7,880,183 7,880,183 7,948,731 68,548
Excess of revenues over
(under) expenditures (4,408,483) (4,408,483) (3,339,257) 1,069,226
Other Financing Sources (Uses)
Bonds issued - - 16,950,902 16,950,902
Premium on bonds issued - - 685,119 685,119
Transfers in 2,866,414 2,866,414 3,333,463 467,049
Total other financing
sources (uses) 2,866,414 2,866,414 20,969,484 18,103,070
Net change in fund balances (1,542,069)$ (1,542,069)$ 17,630,227 19,172,296$
Fund Balance
Beginning of year 6,724,091
End of year 24,354,318$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Governmental Fund - Debt Service
Year Ended December 31, 2024
121
Original Final Actual Amounts
Revenues
Property taxes 6,951,000$ 6,951,000$ 6,837,370$ (113,630)$
Special assessments 3,890,096 3,890,096 4,538,805 648,709
General sales tax 5,436,000 5,436,000 6,537,828 1,101,828
Franchise taxes 80,000 80,000 514,966 434,966
Licenses and permits - - 82,079 82,079
Intergovernmental - - 1,000,147 1,000,147
Charges for services - - 217,351 217,351
Investment income 382,000 382,000 2,018,772 1,636,772
Miscellaneous revenues - - 16,574 16,574
Total revenues 16,739,096 16,739,096 21,763,892 5,024,796
Expenditures
Current
General government - - 111,018 111,018
Public safety - - 274,271 274,271
Public works 134,327 134,327 2,014,285 1,879,958
Park and recreation - - 316,216 316,216
Capital outlay
General government 5,500,000 5,500,000 1,961,242 (3,538,758)
Public safety 2,732,300 2,732,300 13,377,803 10,645,503
Public works 9,132,679 9,132,679 9,195,944 63,265
Park and recreation 5,240,102 5,240,102 5,694,097 453,995
Total expenditures 22,739,408 22,739,408 32,944,876 10,205,468
Excess of revenues over
(under) expenditures (6,000,312) (6,000,312) (11,180,984) (5,180,672)
Other Financing Sources (Uses)
Proceeds from sale of capital asset - - 369,723 369,723
Bonds issued - - 30,347,500 30,347,500
Premium on bonds issued - - 2,226,303 2,226,303
Transfers in - - 530,659 530,659
Transfers out (2,866,413) (2,866,413) (2,866,413) -
Total other financing
sources (uses) (2,866,413) (2,866,413) 30,607,772 33,474,185
Net change in fund balances (8,866,725)$ (8,866,725)$ 19,426,788 28,293,513$
Fund Balance
Beginning of year 36,972,691
End of year 56,399,479$
Budgeted Amounts
Variance with
Final Budget
City of Edina
Schedule of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual
Governmental Fund - Construction Capital Projects
Year Ended December 31, 2024
122
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123
City of Edina
Nonmajor Proprietary Funds
Enterprise Funds
Enterprise funds account for the financing of self-supporting activities of governmental unites 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.
124
Art Center
Edinborough
Park
Centennial
Lakes Braemar Field
Total
Nonmajor
Proprietary
Funds
Assets
Current assets
Cash and investments 184,857$ 281,796$ 529,059$ 1,485,336$ 2,481,048$
Interest Receivable 231 3,002 1,155 12,354 16,742
Accounts Receivable 3,669 111,430 60,518 5,211 180,828
Prepaid expenses - - 1,982 - 1,982
Total current assets 188,757 396,228 592,714 1,502,901 2,680,600
Noncurrent assets
Capital assets
Net capital assets 19,824 1,395,030 1,753,958 4,495,643 7,664,455
Total assets 208,581 1,791,258 2,346,672 5,998,544 10,345,055
Deferred Outflows of Resources
OPEB Deferred Outflows 8,908 21,013 15,075 - 44,996
Pension Deferred Outflows 17,008 71,430 56,950 14,895 160,283
Total deferred outflows of resources 25,916 92,443 72,025 14,895 205,279
Liabilities
Current liabilities
Accounts payable 11,684 96,732 47,417 32,767 188,600
Salaries and Benefits Payable 14,297 77,290 47,036 12,235 150,858
Due to other governments 59 10,301 6,167 11,011 27,538
Unearned revenue 2,252 8,764 12,393 10 23,419
Compensated absences 18,945 45,822 18,422 1,059 84,248
Total OPEB liability 415 980 703 - 2,098
Total current liabilities 47,652 239,889 132,138 57,082 476,761
Noncurrent Liabilities
Compensated absences 28,418 68,734 27,632 1,589 126,373
Total OPEB liability 17,407 41,061 29,457 - 87,925
Net pension liability 67,797 284,745 227,022 59,374 638,938
Total noncurrent liabilities 113,622 394,540 284,111 60,963 853,236
Total liabilities 161,274 634,429 416,249 118,045 1,329,997
Deferred Inflows of Resources
OPEB Deferred Inflows 7,644 18,031 12,935 - 38,610
Pension Deferred Inflows 49,603 208,329 166,097 43,440 467,469
Total deferred intflows of resources 57,247 226,360 179,032 43,440 506,079
Net Position
Net investment in capital assets 19,824 1,395,030 1,753,958 4,495,643 7,664,455
Unrestricted (3,848) (372,118) 69,458 1,356,311 1,049,803
Total net position 15,976$ 1,022,912$ 1,823,416$ 5,851,954$ 8,714,258$
City of Edina
Combining Statement of Net Position - Nonmajor Proprietary Funds
December 31, 2024
125
Art Center
Edinborough
Park
Centennial
Lakes Braemar Field
Total
Nonmajor
Proprietary
Funds
Operating Revenues
Sales - retail -$ 7,286$ -$ -$ 7,286$
Sales - concessions - 71,499 28,274 - 99,773
Memberships - 159,490 - 26,244 185,734
Admissions - 790,073 - - 790,073
Lodging tax - 4,875 - - 4,875
Building rental - 240,632 91,707 635,839 968,178
Rental of equipment - - 213,205 - 213,205
Greens fees - - 333,848 - 333,848
Class registration and other fees 137,268 238,509 349,455 163 725,395
Total operating revenues 137,268 1,512,364 1,016,489 662,246 3,328,367
Operating Expenses
Cost of sales and services - 38,022 11,987 - 50,009
Personal services 340,729 1,027,828 1,034,457 199,625 2,602,639
Contractual services 52,598 444,445 301,358 317,927 1,116,328
Commodities 17,255 127,772 118,955 8,075 272,057
Internal Services 54,648 196,584 154,704 41,184 447,120
Depreciation 5,473 278,858 165,830 536,959 987,120
Total operating expenses 470,703 2,113,509 1,787,291 1,103,770 5,475,273
Operating income (loss) (333,435) (601,145) (770,802) (441,524) (2,146,906)
Nonoperating Revenues (Expenses)
Investment income 1,179 16,044 6,685 55,067 78,975
Gain (loss) on sale of capital assets - - 11,307 - 11,307
Donations 6,053 - 53,918 - 59,971
Total nonoperating revenue
(expenses)7,232 16,044 71,910 55,067 150,253
Income before transfers (326,203) (585,101) (698,892) (386,457) (1,996,653)
Transfers In 301,203 22,915 617,469 1,281 942,868
Change in net position (25,000) (562,186) (81,423) (385,176) (1,053,785)
Net Position - Beginning 40,976 1,585,098 1,902,603 6,237,130 9,765,807
Change in accounting principle (See Note 17) - - 2,236 - 2,236
Net position - beginning, as restated 40,976 1,585,098 1,904,839 6,237,130 9,768,043
Net position - ending 15,976$ 1,022,912$ 1,823,416$ 5,851,954$ 8,714,258$
City of Edina
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Nonmajor Proprietary Funds
For the Year Ended December 31, 2024
126
Art Center
Edinborough
Park
Centennial
Lakes Braemar Field
Total Nonmajor
Proprietary
Funds
Cash Flows - Operating Activities
Receipts from customers and users 137,413$ 1,420,065$ 978,217$ 657,170$ 3,192,865$
Payments to suppliers (116,576) (755,292) (559,989) (376,623) (1,808,480)
Payments to employees (310,859) (963,269) (921,691) (210,943) (2,406,762)
Net cash flows -
operating activities (290,022) (298,496) (503,463) 69,604 (1,022,377)
Cash Flows - Noncapital
Financing Activities
Grants and contributions 6,053 - 53,918 - 59,971
Transfer from other funds 301,203 22,915 617,469 1,281 942,868
Net cash flows - noncapital
financing activities 307,256 22,915 671,387 1,281 1,002,839
Cash Flows - Capital and Related
Financing Activities
Interest paid on debt - - (5,178) - (5,178)
Proceeds from disposal of capital assets - - 11,307 - 11,307
Acquisition of capital assets - (14,775) (18,014) (44,370) (77,159)
Net cash flows -
capital and related
financing activities - (14,775) (11,885) (44,370) (71,030)
Cash Flows - Investing Activities
Interest and dividends received 1,201 16,650 12,328 52,601 82,780
Net change in cash and cash equivalents 18,435 (273,706) 168,367 79,116 (7,788)
Cash and cash equivalents, January 1 166,422 555,502 360,692 1,406,220 2,488,836
Cash and cash equivalents, December 31 184,857$ 281,796$ 529,059$ 1,485,336$ 2,481,048$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss) (333,435)$ (601,145)$ (770,802)$ (441,524)$ (2,146,906)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 5,473 278,858 165,830 536,959 987,120
Accounts receivable (1,221) (93,077) (39,817) (5,086) (139,201)
Due from other governments 1,366 778 1,545 10 3,699
Prepaid items - - (94) - (94)
Accounts payable 7,874 52,333 21,375 (19,823) 61,759
Due to other governmental units 51 (802) 5,734 10,386 15,369
Salaries payable 2,860 31,066 10,054 2,346 46,326
OPEB 3,922 6,228 2,123 - 12,273
Pension related activity 5,845 (24,319) 82,852 (16,312) 48,066
Compensated absences payable 17,243 51,584 17,737 2,648 89,212
Total adjustments 43,413 302,649 267,339 511,128 1,124,529
Net cash flows -
operating activities (290,022)$ (298,496)$ (503,463)$ 69,604$ (1,022,377)$
City of Edina
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
Year Ended December 31, 2024
127
City of Edina
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 responsbilities for.
128
Police Seizure
Public Safety
Training
Facility
Minnesota Task
Force 1 Total
Assets
Cash and investments 3,541$ 103,609$ -$ 107,150$
Prepaids - - 4,343 4,343
Due from other governments - 426,136 444,299 870,435
Total assets 3,541 529,745 448,642 981,928
Liabilities
Cash overdraft - - 132,532 132,532
Accounts payable - 278,319 9,890 288,209
Salaries payable - 16,624 18,685 35,309
Due to other governments - 977 253,407 254,384
Unearned revenue - 5,087 - 5,087
Total liabilities - 301,007 414,514 715,521
Net Position
Held in custody for other governmental units 3,541$ 228,738$ 34,128$ 266,407$
Police Seizure
Public Safety
Training
Facility
Minnesota Task
Force 1 Total
Additions
Collections on behalf of others -$ 1,065,807$ 1,008,095$ 2,073,902$
Deductions
Payments on behalf of others - 1,061,404 974,553 2,035,957
Change in net position - 4,403 33,542 37,945
Net Position
Beginning of year 3,541 224,335 586 228,462
End of year 3,541$ 228,738$ 34,128$ 266,407$
Combining Statement of Changes Fiduciary Net Position
Year Ended December 31, 2024
City of Edina
Combining Statement of Fiduciary Net Position
December 31, 2024
City of Edina
Custodial Funds
Custodial Funds
129
Centennial
District
No. 1203
Southdale 2
District
No. 1208
Pentagon Park
District
No. 1211
Grandview 2
District
No. 1212
66th West
District
No. 1214
50th and
France 2
District
No. 1215
44th and
France
District
No. 1216
West 76th
Street District
No. 1217
Amundson
Avenue
No. 1219
Eden/Wilson
District
No. 1222
Total
Governmental
FundsAssetsCash and investments 1,980,865$ 6,046,215$ 1,964,626$ 1,279,306$ 3,364$ 532,913$ 145,214$ 33,146$ 129,004$ 960,222$ 13,074,875$
Accrued interest 14,086 48,955 10,160 14,202 191 1,732 346 115 693 14,422 104,902
Loans receivable -5,669,809 - - - - - - - - 5,669,809
Due from other districts 4,650,000 199,037 - - - - - - - - 4,849,037
Total assets 6,644,951$ 11,964,016$ 1,974,786$ 1,293,508$ 3,555$ 534,645$ 145,560$ 33,261$ 129,697$ 974,644$ 23,698,623$
Liabilities
Accounts payable 58,123$ -$ 157,773$ 6,941$ -$ 370,534$ 114,413$ 25,015$ -$ 220,133$ 952,932$
Contracts payable - - - 109,232 --- - --109,232
Due to other districts - - - 500,000 199,037 4,150,000 - - --4,849,037 Due to other governments - - 2,862 2,178 608 2,135 1,075 682 689 483 10,712
Salaries and benefits payable - - 1,496 748 -748 580 - - 1,322 4,894
Unearned revenue 13,000 - - - - -- - - - 13,000 Total liabilities 71,123 - 162,131 619,099 199,645 4,523,417 116,068 25,697 689 221,938 5,939,807
Fund BalancesRestricted 6,573,828 11,964,016 1,812,655 674,409 (196,090) (3,988,772) 29,492 7,564 129,008 752,706 17,758,816 Total fund balances 6,573,828 11,964,016 1,812,655 674,409 (196,090) (3,988,772) 29,492 7,564 129,008 752,706 17,758,816
Total liabilities, deferred inflow ofresouces, and fund balances 6,644,951$ 11,964,016$ 1,974,786$ 1,293,508$ 3,555$ 534,645$ 145,560$ 33,261$ 129,697$ 974,644$ 23,698,623$
City of EdinaSchedule of Balance Sheet Accounts -
Tax Increment Financing Districts
December 31, 2024
130
Centennial District
No. 1203
Southdale 2 District
No. 1208
Pentagon Park District
No. 1211
Grandview 2 District
No. 1212
66th West District
No. 1214
50th and
France 2 District
No. 1215
44th and France District
No. 1216
West 76th Street District
No. 1217
Amundson Avenue
No. 1219
Eden/Wilson District
No. 1222
Total Other Governmental
Funds
Revenues
Tax increments -$ -$ 1,155,959$ 806,339$ 15,711$ 823,409$ 254,251$ 55,588$ 54,930$ -$ 3,166,187$
Investment income 69,104 222,172 39,026 91,261 - 7,471 1,504 452 2,434 94,770 528,194
Total revenues 69,104 222,172 1,194,985 897,600 15,711 830,880 255,755 56,040 57,364 94,770 3,694,381
ExpendituresCurrentGeneral government 102,742 - 350,616 18,942 608 780,298 248,319 52,553 689 95,409 1,650,176 Capital outlayGeneral government 2,684 - - 856,251 - - - - - 2,515,684 3,374,619
Total expenditures 105,426 - 350,616 875,193 608 780,298 248,319 52,553 689 2,611,093 5,024,795
Excess of revenues over
(under) expenditures (36,322) 222,172 844,369 22,407 15,103 50,582 7,436 3,487 56,675 (2,516,323) (1,330,414)
Other Financing Sources (Uses)
Bonds issued - - - - - - - - - 5,256,598 5,256,598
Premium on bonds issued - - - - - - - - - 448,437 448,437
Transfers out - - - (467,050) - - - - - -(467,050)
Total other financing
sources (uses)- - - (467,050) - - - - - 5,705,035 5,237,985
Net change in fund balances (36,322) 222,172 844,369 (444,643) 15,103 50,582 7,436 3,487 56,675 3,188,712 3,907,571
Fund Balances
Beginning of year 6,610,150 11,741,844 968,286 1,119,052 (211,193) (4,039,354) 22,056 4,077 72,333 (2,436,006) 13,851,245
End of year 6,573,828$ 11,964,016$ 1,812,655$ 674,409$ (196,090)$ (3,988,772)$ 29,492$ 7,564$ 129,008$ 752,706$ 17,758,816$
City of Edina
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Tax Increment Financing DistrictsYear Ended December 31, 2024
131
STATISTICAL SECTION
132
(THIS PAGE LEFT BLANK INTENTIONALLY)
133
City of Edina
Statistical Section (Unaudited)
This part of the City of Edina'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.
Financial Trends
These schedules contain trend information to help the reader understand how the government's
financial performance and well-being have changed over time.
Table 1 – Net Position by Component
Table 2 – Changes in Net Position
Table 3 – Fund Balances of Governmental Funds
Table 4 – Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the government's most significant
local revenue source, property taxes.
Table 5 – Taxable and Estimated Market Values of Taxable Property
Table 6 – Property Tax Rates – Direct and Overlapping Governments
Table 7 – Principal Property Taxpayers
Table 8 – Property Tax Levies and Collations
Debt Capacity
These schedules present information to help the reader assess the affordability of the
government's current level of outstanding debt and the government's ability to issue additional
debt in the future.
Table 9 – Legal Debt Margin Information
Table 10 – Ratios of Outstanding Debt by Type
Table 11 – Ratios of General Bonded Debt Outstanding
Table 12 – Direct and Overlapping Governmental Activities Debt
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the government's financial activities take place.
Table 13 – Demographic and Economic Statistics
Table 14 – Principal Employers
Table 15 – Full-Time City Government Employees by Function
Table 16 – Operating Indicators by Function
Table 17 – Capital Asset Statistics by Function
134
Table 1
2015a 2016 2017 2018b 2019 2020 2021 2022 2023 2024
Governmental ActivitiesNet Investment in Capital Assets 85,838,618$ 93,247,973$ 96,149,011$ 107,133,225$ 110,670,335$ 117,052,475$ 116,754,295$ 102,453,359$ 112,750,230$ 131,971,012$ Restricted 16,925,171 20,892,680 22,840,869 25,017,586 36,999,647 60,063,244 76,262,266 70,035,114 67,750,386 88,258,611 Unrestricted 21,957,830 22,146,168 26,412,441 31,277,308 27,680,337 16,475,796 15,308,966 29,841,435 32,417,853 15,417,004 Total Governmental
Activities Net Position 124,721,619$ 136,286,821$ 145,402,321$ 163,428,119$ 175,350,319$ 193,591,515$ 208,325,527$ 202,329,908$ 212,918,469$ 235,646,627$
Business-Type ActivitiesNet Investment in Capital Assets 83,395,794$ 85,158,869$ 82,338,560$ 81,980,815$ 80,452,583$ 81,135,647$ 86,975,121$ 90,405,666$ 96,982,508$ 102,429,959$ Restricted 793,664 804,393 1,338,276 1,360,336 1,360,336 1,268,479 1,225,093 - 1,245,001 1,243,768 Unrestricted 16,405,405 17,300,872 22,443,806 27,285,949 32,045,171 33,086,023 32,253,873 43,289,552 43,770,784 48,450,455 Total Business-Type
Activities Net Position 100,594,863$ 103,264,134$ 106,120,642$ 110,627,100$ 113,858,090$ 115,490,149$ 120,454,087$ 133,695,218$ 141,998,293$ 152,124,182$
Primary GovernmentNet Investment in Capital Assets 169,234,412$ 178,406,842$ 178,487,571$ 189,114,040$ 191,122,918$ 198,188,122$ 203,729,416$ 192,859,025$ 209,732,738$ 234,400,971$
Restricted 17,718,835 21,697,073 24,179,145 26,377,922 38,359,983 61,331,723 77,487,359 70,035,114 68,995,387 89,502,379
Unrestricted 38,363,235 39,447,040 48,856,247 58,563,257 59,725,508 49,561,819 47,562,839 73,130,987 76,188,637 63,867,459
Total Primary Government
Net Position 225,316,482$ 239,550,955$ 251,522,963$ 274,055,219$ 289,208,409$ 309,081,664$ 328,779,614$ 336,025,126$ 354,916,762$ 387,770,809$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of this change in accounting principle.
b 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 implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of this change in accounting principle.
City of Edina, Minnesota
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
135
Table 2
2015b 2016 2017 2018c 2019 2020d 2021 2022 2023 2024ExpensesGovernmental Activities:General Government 8,518,236$ 9,587,567$ 9,164,272$ 10,964,266$ 11,252,538$ 11,698,533$ 14,844,785$ 19,199,880$ 19,505,673$ 19,817,993$ Public Safety 19,507,770 20,243,209 21,815,101 20,971,184 27,496,563 27,058,719 24,288,956 29,290,638 32,790,034 32,565,377 Public Works 15,284,777 19,444,472 17,750,505 14,170,463 10,979,180 16,117,060 11,497,445 23,018,094 18,755,764 17,270,199 Parks 3,385,367 3,822,716 4,222,431 7,235,405 7,554,919 6,798,866 7,365,756 7,928,925 8,354,807 9,035,898 Interest on Long-Term Debt 2,180,678 2,133,474 1,996,354 1,726,901 1,999,318 1,561,462 1,282,299 1,709,865 2,058,881 1,993,206 Total Governmental Activities Expenses 48,876,828 55,231,438 54,948,663 55,068,219 59,282,518 63,234,640 59,279,241 81,147,402 81,465,159 80,682,673 Business-Type Activities:Water 14,963,304 16,780,474 17,361,659 18,045,516 19,303,212 9,592,913 9,094,274 7,449,657 7,500,796 6,908,508 Sewer - - - - - 7,641,660 7,690,708 8,612,892 9,155,586 9,258,115 Stormwater - - - - - 3,424,049 3,146,475 2,735,091 4,031,428 4,597,085 Recycling - - - - - 1,392,003 1,956,546 1,838,148 1,671,424 1,884,856 Liquor 11,818,602 12,130,254 12,007,885 11,995,159 11,970,986 11,500,971 13,435,305 13,725,070 12,890,487 12,182,004 Aquatic Center 872,960 915,560 1,015,328 996,671 979,376 386,026 1,052,346 1,218,383 1,336,122 1,411,631 Golf Course 3,409,343 3,041,169 3,469,121 2,464,563 4,009,097 4,257,484 4,822,338 5,282,761 5,889,718 5,664,944 Arena 2,642,097 2,842,660 2,961,787 2,996,844 2,982,674 2,876,897 2,882,067 3,214,462 3,522,909 3,374,912 Community Activity Centers 3,436,325 3,853,091 4,095,309 4,096,452 4,286,773 3,412,784 3,231,622 4,537,612 5,004,952 5,266,795 Total Business-Type Activities Expenses 37,142,631 39,563,208 40,911,089 40,595,205 43,532,118 44,484,787 47,311,681 48,614,076 51,003,422 50,548,850
Total Primary Government Expenses 86,019,459$ 94,794,646$ 95,859,752$ 95,663,424$ 102,814,636$ 107,719,427$ 106,590,922$ 129,761,478$ 132,468,581$ 131,231,523$
Program RevenuesGovernmental Activities:Charges for Services:General Government 1,322,430$ 1,453,009$ 1,142,120$ 2,395,535$ 1,204,947$ 4,172,729$ 2,207,889$ 5,873,349$ 1,893,976$ 2,626,044$ Public Safety 8,683,465 8,996,046 9,627,122 9,978,816 9,747,031 10,152,772 9,970,031 11,909,539 11,324,457 11,224,257 Other Activities 1,158,207 1,289,770 1,288,452 1,202,732 1,265,918 1,007,903 1,351,458 1,670,253 1,490,859 1,762,209 Operating Grants and Contributions 3,122,178 2,751,495 2,194,336 4,028,247 4,271,243 7,626,236 2,721,724 6,792,587 6,926,971 5,653,563 Capital Grants and Contributions 10,044,077 15,252,861 9,775,184 6,695,172 6,625,040 7,318,687 4,030,108 4,943,744 4,673,918 10,997,515 Total Governmental Activities Program Revenues 24,330,357 29,743,181 24,027,214 24,300,502 23,114,179 30,278,327 20,281,210 31,189,472 26,310,181 32,263,588 Business-Type Activities:Charges for Services:Water 19,335,443 19,505,905 21,361,972 22,697,468 21,875,655 9,236,665 10,302,974 12,717,867 12,483,445 12,108,941 Sewer - - - - - 10,622,411 10,732,193 12,706,062 10,438,055 11,744,821 Stormwater - - - - - 4,773,432 5,207,295 5,389,214 5,934,139 6,349,555 Recycling - - - - - 1,148,338 1,447,226 1,485,925 1,584,965 1,740,862 Liquor 12,462,387 12,937,092 12,991,764 13,401,754 13,094,407 12,117,414 14,280,055 14,427,474 13,330,018 12,641,168 Aquatic Center 971,936 956,068 962,857 997,727 996,778 - 1,071,692 1,144,569 1,120,598 1,122,688 Golf Course 2,857,190 2,809,702 1,254,412 1,396,173 3,395,815 3,968,529 5,290,109 6,080,771 6,306,176 6,289,801 Arena 2,316,853 2,314,892 2,508,192 2,629,945 2,516,629 1,638,011 2,347,678 2,551,853 2,749,483 2,861,737 Community Activity Centers 3,119,789 3,190,775 3,348,628 3,303,278 3,240,000 1,499,060 2,106,088 2,979,493 3,123,525 3,377,410 Operating Grants and Contributions 595,141 445,464 179,086 545,682 44,953 47,780 404,419 271,640 428,035 225,531 Capital Grants and Contributions - - 904,201 - 692,281 396,103 - - - - Total Business-Type Activities Program Revenues 41,658,739 42,159,898 43,511,112 44,972,027 45,856,518 45,447,743 53,189,729 59,754,868 57,498,439 58,462,514 Total Primary Government Program Revenues 65,989,096$ 71,903,079$ 67,538,326$ 69,272,529$ 68,970,697$ 75,726,070$ 73,470,939$ 90,944,340$ 83,808,620$ 90,726,102$
Net (Expense) Revenue Governmental Activities (24,546,471)$ (25,488,257)$ (30,921,449)$ (30,767,717)$ (36,168,339)$ (32,956,313)$ (38,998,031)$ (49,957,930)$ (55,154,978)$ (48,419,085)$ Business-Type Activities 4,516,108 2,596,690 2,600,023 4,376,822 2,324,400 962,956 5,878,048 11,140,792 6,495,017 7,913,664
Total Primary Government Net Expense (20,030,363)$ (22,891,567)$ (28,321,426)$ (26,390,895)$ (33,843,939)$ (31,993,357)$ (33,119,983)$ (38,817,138)$ (48,659,961)$ (40,505,421)$
General Revenues and Other Changes in Net Position Governmental Activities:Property Taxes 29,632,072$ 31,396,421$ 33,665,029$ 35,616,432$ 37,133,269$ 39,545,279$ 41,826,967$ 45,074,974$ 49,210,670$ 53,412,154$ Tax Increment Collections 1,792,896 2,779,097 3,422,898 4,997,706 5,447,108 6,452,819 8,295,756 1,720,243 2,078,687 3,176,176 Franchise Taxes 2,089,038 2,346,423 2,408,884 2,559,443 2,881,726 3,071,392 3,090,322 3,071,551 3,111,525 3,322,639 Lodging Taxes 22,716 22,624 21,006 25,298 24,119 8,313 17,214 25,751 28,675 30,240 General Sales Tax - - - - - - - - 5,501,492 6,537,828 Unrestricted Investment Earnings 195,620 344,277 514,073 901,405 2,037,306 1,835,870 (372,080) (2,903,247) 5,324,618 3,949,750 Gain on Disposal of Capital Assets 41,900 65,044 - 5,032,815 408,659 - 101,404 53,576 124,585 394,009 Insurance Recovery - - - - - - - - - - Transfers (2,230,966) 99,573 5,059 305,428 158,352 283,836 772,460 (3,080,537) 363,287 40,144 Total Governmental Activities 31,543,276 37,053,459 40,036,949 49,438,527 48,090,539 51,197,509 53,732,043 43,962,311 65,743,539 70,862,940 Business-Type Activities:Lodging Taxes - - - - - - - - - 4,875 Unrestricted Investment Earnings91,907 136,208 254,990 481,754 1,064,942 945,580 (141,650) (980,198) 2,142,983 1,830,869 Gain (Loss) on Disposal of Capital Assets 39,427 35,946 6,554 - - 7,359 - - 28,362 52,607 Transfers 2,230,966 (99,573) (5,059) (305,428) (158,352) (283,836) (772,460) 3,080,537 (363,287) (40,144) Total Business-Type Activities 2,362,300 72,581 256,485 176,326 906,590 669,103 (914,110) 2,100,339 1,808,058 1,848,207
Total Primary Government 33,905,576$ 37,126,040$ 40,293,434$ 49,614,853$ 48,997,129$ 51,866,612$ 52,817,933$ 46,062,650$ 67,551,597$ 72,711,147$
Change in Net PositionGovernmental Activities 6,996,805$ 11,565,202$ 9,115,500$ 18,670,810$ 11,922,200$ 18,241,196$ 14,734,012$ (5,995,619)$ 10,588,561$ 22,443,855$ Business-Type Activities 6,878,408 2,669,271 2,856,508 4,553,148 3,230,990 1,632,059 4,963,938 13,241,131 8,303,075 9,761,871
Total Primary Government 13,875,213$ 14,234,473$ 11,972,008$ 23,223,958$ 15,153,190$ 19,873,255$ 19,697,950$ 7,245,512$ 18,891,636$ 32,205,726$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of this change in accounting principle.
b The City completed a major departmental reorganization in 2014, moving parks maintenance activities from parks to public works. Prior year
information has not been modified as a result of this change.
c 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.
d The City completed a major departmental reorganization in 2018, moving parks maintenance activities from public works to parks. The City also
implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of either change.
e The City broke out the various functions within the utilities fund for the first time in 2020. Prior year information has not been restated.
City of Edina, MinnesotaChanges in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
136
Table 3
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General FundNonspendable 529,513$ 27,643$ 13,124$ -$ 28,403$ 28,403$ 85,083$ 80,509$ 96,823$ 157,932$ Restricted 417,673 927,673 961,133 961,133 58,086 58,086 58,086 58,086 58,086 58,086 Assigned 1,547,398 1,612,240 1,739,079 2,105,741 2,093,760 6,679,877 5,627,113 5,592,639 5,684,253 5,247,146
Unassigned 11,825,799 14,624,755 15,656,518 16,812,851 16,411,412 20,476,747 18,003,259 19,904,228 21,240,417 25,474,747
Total General Fund 14,320,383$ 17,192,311$ 18,369,854$ 19,879,725$ 18,591,661$ 27,243,113$ 23,773,541$ 25,635,462$ 27,079,579$ 30,937,911$
All Other Governmental
FundsNonspendable -$ -$ -$ -$ -$ -$ 71,784$ 1,479$ 2,196$ 12,960$ Restricted, Reported in:
Special Revenue Funds 9,405,757$ 12,673,995$ 14,453,556$ 14,755,259$ 18,653,029$ 26,862,127$ 42,538,152$ 37,788,867$ 33,803,725$ 39,512,182$
Debt Service Funds 7,134,575 11,187,468 17,000,806 7,871,858 8,341,996 9,727,306 11,178,492 6,702,038 6,724,091 24,354,318
Construction Funds 551,132 209,510 78,702 30,072 - - - - 3,419,009 46,999,685 Assigned, Reported in:Capital Projects Funds 13,127,881 13,109,438 15,710,621 19,726,343 21,927,249 19,634,745 25,778,679 29,480,869 33,553,682 9,399,794
Unassigned, Reported in:
Special Revenue Funds - (190,845) - - - (50,610) - - - (95,754)
Total all Other GovernmentalFunds 30,219,345$ 36,989,566$ 47,243,685$ 42,383,532$ 48,922,274$ 56,173,568$ 79,567,107$ 73,973,253$ 77,502,703$ 120,183,185$
City of Edina, Minnesota
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
137
Table 4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
RevenuesGeneral Property Taxes 29,535,270$ 31,354,023$ 33,696,550$ 35,613,883$ 37,093,074$ 39,509,239$ 41,796,463$ 45,096,245$ 49,156,931$ 53,549,123$
Tax Increment Collections 1,792,896 2,779,097 3,422,898 4,997,706 5,447,108 6,452,819 8,295,756 1,720,243 2,078,687 3,176,176 Franchise Taxes 2,089,038 2,346,423 2,408,884 2,559,443 2,881,726 3,071,392 3,090,322 3,071,551 3,111,525 3,322,639 Lodging Fees 22,716 22,624 21,006 25,298 24,119 8,313 17,214 25,751 28,675 30,240
General Sales Tax - - - - - - - - 5,450,871 6,537,828 Special Assessments 4,132,128 5,276,194 5,330,766 4,747,205 4,741,557 4,629,551 4,130,703 4,426,156 3,609,885 4,761,838 License and Permits 4,907,364 5,268,519 5,403,222 5,912,757 5,183,754 6,454,749 6,077,446 7,482,098 5,716,734 6,011,119
Intergovernmental 6,093,966 5,775,114 3,687,262 5,124,573 3,687,620 11,218,739 3,321,222 6,459,627 7,718,968 6,147,909 Charges for Services 4,414,991 4,689,389 4,917,173 4,898,548 5,431,941 4,968,288 5,980,258 6,254,411 7,121,548 7,969,574 Fines and Forfeitures 1,195,271 1,016,817 1,135,986 1,122,426 1,097,122 485,472 460,914 359,680 488,872 621,837
Investment Income 195,314 344,344 512,448 889,550 1,989,881 1,835,870 (372,080) (2,903,247) 5,324,618 3,949,750 Rental of Property 416,522 514,955 459,099 632,011 487,797 479,148 491,579 711,100 34,017 465,411 Parkland Dedication 800,000 1,250,000 33,460 - - - - - - -
Other Revenues 361,425 2,599,830 761,281 990,277 600,905 3,069,269 704,558 4,737,252 975,653 635,253 Total Revenues 55,956,901 63,237,329 61,790,035 67,513,677 68,666,604 82,182,849 73,994,355 77,440,867 90,816,984 97,178,697
ExpendituresGeneral Government 6,337,944 6,815,725 7,065,729 8,630,290 8,973,194 8,577,452 12,236,821 17,968,839 14,514,601 14,666,367 Public Safety 17,537,528 18,554,507 19,233,386 20,323,076 21,701,254 25,612,596 25,694,255 26,526,855 28,873,158 30,266,189
Public Works 10,578,472 10,474,008 11,524,896 8,682,928 8,998,768 8,843,557 10,718,078 11,502,009 12,807,448 13,214,290
Parks 1,416,858 1,529,384 1,695,397 5,202,962 5,453,778 4,878,372 5,917,562 6,471,305 6,887,573 7,471,126 Capital Outlay 19,912,565 16,787,575 11,053,212 19,752,836 18,558,023 13,056,078 12,203,492 29,567,796 26,544,647 36,473,132
Debt Service:Principal 13,276,375 5,246,375 5,496,375 5,523,369 5,778,476 5,865,000 8,326,000 9,247,829 4,642,939 5,225,676 Interest and Other Charges 2,375,613 2,360,827 2,359,551 2,099,594 1,923,526 2,007,730 1,892,346 2,048,560 2,828,936 2,749,901
Total Expenditures 71,435,355 61,768,401 58,428,546 70,215,055 71,387,019 68,840,785 76,988,554 103,333,193 97,099,302 110,066,681
Revenues Over (Under)
Expenditures (15,478,454) 1,468,928 3,361,489 (2,701,378) (2,720,415) 13,342,064 (2,994,199) (25,892,326) (6,282,318) (12,887,984)
Other Financing Sources (Uses)
Utility Contributions from Other Funds - - - 37,978 115,494 - - - - - Transfers In 3,232,770 3,504,542 5,130,405 5,464,771 6,738,864 6,260,386 8,408,356 3,823,898 4,775,548 4,086,582 Transfers Out (6,472,066) (3,404,969) (5,057,263) (5,139,771) (6,604,736) (5,976,550) (7,639,656) (3,515,998) (4,429,444) (4,064,122)
Sale of Capital Assets 78,509 65,044 84,388 6,201,630 1,172,391 251,670 3,000,821 106,406 77,700 394,009
Insurance Recovery 167,167 - - - - - - - - - Loans Issued - - - - 750,000 - - - - -
Bonds Issued 9,040,000 3,940,000 1,995,000 2,210,000 5,000,000 1,991,000 16,820,000 29,610,000 1,180,000 55,620,000
Refunding Bonds Issued 3,490,000 3,635,000 8,955,000 - - - - - - - Premium on Bonds Issued 492,838 450,409 798,791 74,787 799,080 34,176 2,329,645 1,691,560 95,608 3,390,329
Discount on Bonds Issued (47,815) (16,805) (51,148) (18,299) - - - - - -
Payment to Refunding Escrow - - (3,785,000) (9,480,000) - - - - - - Total Other Financing
Sources (Uses) 9,981,403 8,173,221 8,070,173 (648,904) 7,971,093 2,560,682 22,919,166 31,715,866 1,699,412 59,426,798
Net Change in Fund Balances (5,497,051)$ 9,642,149$ 11,431,662$ (3,350,282)$ 5,250,678$ 15,902,746$ 19,924,967$ 5,823,540$ (4,582,906)$ 46,538,814$
Debt Service as a Percentage of
Noncapital Expenditures 28.9% 16.2% 15.9% 14.6% 13.8% 13.2% 15.6% 15.2% 10.2% 10.8%
Fiscal Year Fiscal Year
City of Edina, Minnesota
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
138
Table 5
City Tax City
Used Adjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
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
15,461,411 15,461,411 15,386,401 190,473 172,188 176,690 28.056% 0.00000% 3.206
16,647,041 16,647,041 16,576,598 205,646 185,733 190,715 28.412% 0.00000% 3.255
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.
City of Edina, Minnesota
Assessed Value, Actual Value and Tax Capacity of Taxable Property
Last Ten Fiscal Years
2024
2023
2022
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2015
Fiscal Direct
2021
Year
2016
2017
2020
2019
2018
139
Table 6
Total
Basic Debt HRA Total Tax Direct and
Rate Rate Rate Capacity RMV Hennepin Tax Capacity RMV Other Overlap
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%
26.229% 1.827% 0.138% 28.194% 0.000% 34.542% 28.093% 0.222% 7.879% 98.708%
26.591% 1.821% 0.132% 28.544% 0.000% 34.681% 28.248% 0.205% 7.733% 99.206%
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 differentschool 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.
City of Edina, Minnesota
Direct and Overlapping Tax Capacity Rates
Last Ten Fiscal Years
2024
2023
2021
2020
2019
City Rates
2022
Overlapping Rates
ISD #273 EdinaFiscal
Year
2018
2016
2017
2015
140
Table 7
Percentage Percentage
of Total of Total
Tax Capacity Rank Capacity Tax Capacity Rank Capacity
Galleria Shopping Center 3,071,567$ 1 1.49% 1,977,317$ 2 1.68%
Centennial Lakes Office 2,832,638 2 1.38%DNA DNA DNA
Southdale Shopping Center 1,869,250 3 0.91% 2,520,750 1 2.14%
Centennial Lakes Plaza 1,457,234 4 0.71%DNA DNA DNA
Cedars of Edina 1,344,395 5 0.65%DNA DNA DNA
Southdale Medical Building 1,342,551 6 0.65%904,365 3 0.77%
The Bower Residences 1,310,000 7 0.64%DNA DNA DNA
The Fred 1,170,000 8 0.57%DNA DNA DNA
71 France Apartments 988,894 9 0.48%DNA DNA DNA
Southdale Office Center 982,792 10 0.48%775,872 7 0.66%
Centennial Lakes Retail DNA DNA DNA 831,684 4 0.71%
Centennial Lakes Phase V DNA DNA DNA 813,134 5 0.69%
Centennial Lakes Phase IV DNA DNA DNA 797,386 6 0.68%
The District DNA DNA DNA 520,998 8 0.44%
7700 France DNA DNA DNA 520,046 9 0.44%
Centennial Lakes Phase III DNA DNA DNA 508,896 10 0.43%
Totals 16,369,321$ 7.96% 10,170,448$ 8.64%
Source: City of Edina Assessing Office
DNA: Data is not available
20152024
Taxpayer
City of Edina, Minnesota
Principal Property Tax Payers
Current Year and Nine Years Ago
141
Table 8
Total Collections in
Tax Percentage Subsequent Percentage
Levy Amount of Levy Years Amount of Levy
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%(30,283) 35,520,813 99.26%
37,431,021 37,104,274 99.13%71,278 37,175,552 99.32%
39,659,543 39,392,703 99.33%(14,193) 39,378,510 99.29%
42,018,271 41,704,258 99.25%(65,773) 41,638,485 99.10%
45,367,336 45,005,400 99.20%6,557 45,011,957 99.22%
49,855,000 49,423,644 99.13%343,910 49,767,554 99.82%
54,418,565 53,715,582 98.71%- 53,715,582 98.71%
Source: Hennepin County Taxpayer Services.
City of Edina, Minnesota
Property Tax Levies and Collections
Last Ten Fiscal Years
2024
2023
2022
Collected within the
Fiscal Year of the Levy
2021
2020
2019
2018
2016
2015
2017
Total Collections to Date
Taxes
Payable
142
Table 9
General Public Tax Permanent EEEP Rec. Utility Total Percentage
Obligation Project Increment Improvement Revenue Notes Lease Subscription Facility Revenue Leases Primary of Personal Per
Debt Revenue Bonds Revolving Bonds Payable Liability Liability Bonds Bonds Payable Government Income a Capita a
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 11 - 10,841 41,025 34 145,057 3.45% 2,684
41,108 11,894 7,935 27,375 - 750 9 365 9,799 46,224 18 145,476 3.20% 2,692
73,418 26,103 13,434 28,475 - 750 6 124 8,736 47,416 638 199,100 4.11% 3,655
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.
2024
City of Edina, Minnesota
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Governmental Activities Business-Type Activities
2023
2022
2021
2020
2019
Year
Fiscal
2018
2015
2016
2017
143
Table 10
Less:
Amounts
General Available Percentage of
Obligation Debt Service Property
Debt a Fund b Total Value c Per Capita d
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%672
41,108 6,724 34,384 0.22%636
73,418 24,354 49,064 0.29%901
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.
City of Edina, Minnesota
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(dollars in thousands, except per capita)
2024
2023
2022
2021
2020
2019
Year
Fiscal
2018
2016
2015
2017
144
Table 11
Net General
Obligation Percentage
Bonded Debt Applicable City Share
Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 1,192,537,479$ 7.26% 86,578,221$
Hennepin Suburban Park District 48,916,041 9.81% 4,798,664
Hennepin Regional Rail Authority 76,774,733 7.26% 5,573,846
School Districts:
ISD No. 273 (Edina) 167,591,480 99.04% 165,982,602
ISD No. 270 (Hopkins) 131,446,433 8.22% 10,804,897
ISD No. 271 (Bloomington) 173,709,283 0.01% 17,371
ISD No. 272 (Eden Prairie) 95,804,496 1.01% 967,625
ISD No. 280 (Richfield) 119,393,589 30.90% 36,892,619
ISD No. 283 (St. Louis Park) 237,488,963 0.03% 71,247
Metro Council 40,609,929 3.29% 1,336,067
Total Overlapping Debt 2,284,272,426$ 313,023,157$
City of Edina 141,402,321$ 100.00% 141,402,321$
Total Overlapping and Direct Debt 2,425,674,747$ 454,425,478$
Ratio of Debt Per Capita (54,048 Population) 8,341$
Ratio of Debt to Estimated Market Valuation of $16,647,040,500 2.73%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
City of Edina, Minnesota
Direct and Overlapping Governmental Activities Debt
As of December 31, 2024
145
Table 12
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt Limit 291,050$ 308,890$ 323,556$ 346,426$ 368,150$ 383,574$ 400,331$ 413,891$ 463,842$ 499,411$
Total Net Debt
Applicable
to Limit 48,000 48,325 50,115 37,595 37,265 33,970 31,705 53,460 50,910 85,230
Legal Debt
Margin 243,050$ 260,565$ 273,441$ 308,831$ 330,885$ 349,604$ 368,626$ 360,431$ 412,932$ 414,181$
Total Net Debt
Applicable tothe Limit as a
Percentage of
Debt Limit 16.49% 15.64% 15.49% 10.85% 10.12% 8.86% 7.92% 12.92% 10.98% 17.07%
Legal Debt Margin Calculation for Fiscal Year 2024
Market Value (After Fiscal Disparities) 16,647,040,500$ Debt Limit (3% of Market Value) 499,411,215
Debt Applicable to Limit: General Obligation Bonds 60,315,000
Public Project Revenue Bonds 24,915,000
Total Debt Applicable to Limit 85,230,000
Legal Debt Margin 414,181,215$
Fiscal Year
City of Edina, Minnesota
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
146
Table 13
Less:
Operating Net Available
Revenue Expenses Revenue Principal Interest Total Coverage
Public Project Revenue Bonds (Annual Appropriation Lease Revenue)
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
2023 1,558,000 - 1,558,000 1,070,000 400,194 1,470,194 1.06
2024 1,560,700 - 1,560,700 1,100,000 367,644 1,467,644 1.06
Tax Increment Bonds
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
2023 2,078,687 - 2,078,687 250,000 217,250 467,250 4.45
2024 3,176,176 - 3,176,176 260,000 207,050 467,050 6.80
Permanent Improvement Revolving Bonds (Special Assessment)
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
2023 2,410,414 - 2,410,414 1,817,000 872,103 2,689,103 0.90 2024 2,302,560 - 2,302,560 1,794,000 858,888 2,652,888 0.87
Utility Bond
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
2023 30,426,494 21,429,025 8,997,469 4,292,000 1,491,444 5,783,444 1.56
2024 31,943,249 22,556,198 9,387,051 4,735,000 1,759,127 6,494,127 1.45
Recreational Facility Bonds2015 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
2023 10,171,227 10,579,708 (408,481) 939,000 314,108 1,253,108 (0.33)
2024 10,263,489 10,715,730 (452,241) 832,000 245,850 1,077,850 (0.42)
Debt Service RequirementsFiscal
Year
City of Edina, Minnesota
Pledged Revenue Coverage
Last Ten Fiscal Years
147
Table 14
Estimated
Personal Per Capita High School
Income Personal Graduation Unemployment
Population (In thousands) Income Rate Rate
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%
54,048 4,209,637 77,887 98.5%2.10%
54,048 4,542,680 84,049 98.4%2.30%
54,480 4,841,529 88,868 98.5%2.50%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2023 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. 2023 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.
2024
2023
2022
2021
Fiscal
Year
2020
2019
2018
2015
2016
2017
City of Edina, Minnesota
Demographic and Economic Statistics
Last Ten Fiscal Years
148
Table 15
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
Edina Realty and Edina Realty Title 2,106 1 8.07% 400 9 1.66%
Coldwell Banker Realty 1,870 2 7.16% DNA DNA DNA
Edina Public Schools ISD #273 1,681 3 6.44% 1,860 2 7.71%
Fairview Southdale Hospital 1,624 4 6.22% 2,613 1 10.84%
City of Edina 1,015 5 3.89% 757 3 3.14%
BI Worldwide 736 6 2.82% 600 4 2.49%
Western National Insurance Company 562 7 2.15% DNA DNA DNA
Lund Food Holdings, Inc 500 8 1.92% 405 7 1.68%
Dow Water & Process Solutions 375 9 1.44% DNA DNA DNA
Target 375 10 1.44% DNA DNA DNA
Regis Corporation DNA DNA DNA 600 5 2.49%
Barr Engineering DNA DNA DNA 453 6 1.88%
International Dairy Queen Inc. DNA DNA DNA 400 8 1.66%
FilmTec Corporation DNA DNA DNA 375 10 1.56%
Totals 10,844 41.54% 8,463 35.11%
Sources:
Data Axle Reference Solutions, written and telephone survey,
and the Minnesota Department of Employment and Economic Development.
2015 data from previous CAFR.
DNA: Data is not available
20152024
Employer
City of Edina, Minnesota
Principal Employers
Current Year and Nine Years Ago
149
Table 16
2015 2016 b 2017 b 2018 2019 2020 b 2021 2022 2023 2024
Administration
General Fund 4.85 5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 8.00
Communications
General Fund 6.15 6.00 6.00 6.00 6.00 6.80 6.80 7.00 7.00 7.00
Internal Services - - - - - 0.20 0.20 - - -
Information Technology Services
Internal Services 5.00 5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 9.00
Community Development
General Fund 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 13.00
HRA Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Engineering
General Fund 11.00 11.00 11.00 12.00 12.00 17.30 17.30 15.00 15.00 15.00
PACS Fund 1.00 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 1.35 1.35 1.00 1.00 1.00
CAS Fund - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00
Construction Fund 1.00 1.10 1.10 1.10 1.10 1.00 1.00 - - -
Internal Services - - - - - 4.35 5.35 8.00 8.00 8.00
Finance
General Fund 6.00 5.00 5.00 6.00 6.00 6.00 6.00 7.00 8.00 8.00
Utilities Fund 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00
Liquor Fund - - - - - - - - -
Fire Protection
General Fund 43.85 45.90 45.90 45.80 49.80 63.35 63.35 66.55 71.55 71.55
Utilities Fund 0.25 - - - - 1.65 1.65 1.45 1.45 1.45
Human Resources
General Fund 4.00 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 5.00
Internal Services - - - - - 1.00 1.00 1.00 1.00 1.00
Parks & Recreation
General Fund 23.65 25.05 25.05 25.30 25.30 24.65 24.65 24.00 25.00 25.50 Aquatic Center 0.55 0.60 0.60 0.70 0.70 0.70 0.70 0.33 1.03 1.05
Golf Course 12.00 8.05 8.05 9.00 9.00 11.00 11.18 12.15 12.15 12.34
Arena 5.00 4.85 4.85 6.25 6.25 5.95 6.03 6.58 7.08 7.15
Sports Dome - 0.15 0.15 1.00 1.00 1.05 1.08 0.53 0.03 0.03
Art Center 2.00 2.00 2.00 2.00 2.00 2.00 2.08 2.08 1.08 1.08
Edinborough Park 5.80 5.80 5.80 5.65 5.65 5.65 5.75 6.80 5.10 5.20
Centennial Lakes 5.00 5.00 5.00 5.05 5.05 5.00 5.03 5.03 5.03 5.05
Liquor Fund 9.00 9.00 9.00 9.00 9.00 8.50 9.50 9.50 9.50 9.60
Enterprise Funds - - - - - 0.50 - - -
Police Protection
General Fund 70.50 72.55 72.55 76.55 76.55 77.00 78.00 78.00 80.00 84.00
Public Works
General Fund 26.70 25.40 25.40 23.30 23.30 19.15 19.15 24.00 26.00 26.00
Utilities Fund 15.20 16.85 16.85 18.65 18.65 19.05 20.05 15.00 16.00 16.00
Internal Services 11.00 10.25 10.25 10.20 10.20 6.60 6.60 7.00 7.00 7.00
Enterprise Funds - - - - - 0.20 0.20 - - -
Other - - - - - - - - - -
Total 284.50 286.55 286.55 296.55 300.55 324.00 330.00 337.00 349.00 354.00
Source: City of Edina 2024-2025 Budget Book
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
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
150
Table 17
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government
Total City Employees 1,077 1,155 1,067 1,136 1,174 953 1,021 1,099 1,148 1,226
Votes Cast a 9,370 31,986 11,440 30,774 10,990 36,088 14,881 29,250 5,928 54,801
Public Works
Asphalt Placed (Tons) 8,888 9,298 11,176 14,419 9,847 10,593 10,962 10,300 12,664 N/A
Concrete (cu. yds.)670 897 708 868 963 816 435 455 525 484
Public Safety
Fire Calls 1,251 1,276 1,220 1,321 1,600 1,265 1,419 1,431 1,577 1,514
Medical Calls 3,818 4,063 4,508 4,572 4,727 4,288 5,337 5,811 5,643 5,802
Police Calls for Service d 50,735 61,325 71,738 62,981 60,975 47,833 48,757 46,191 36,350 37,699
Internal Services
Vehicle Fixes 2,923 2,721 2,478 2,336 1,910 1,780 1,555 1,048 1,414 1,565
Utilities
Daily Consumption b 6,308 6,047 5,950 6,101 5,394 5,785 6,705 6,587 6,768 5,779
Aquatic Center
Attendance 128,523 108,609 89,318 88,342 83,499 - 88,217 81,184 80,225 70,686
Golf Course
Total Rounds Played c 66,483 61,256 23,241 20,679 60,561 74,180 76,383 75,437 75,684 77,782
Source: Various City departments
N/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. In 2023, changed system where only serviced calls are tracked.
Function
Fiscal Years
City of Edina, Minnesota
Operating Indicators by Function
Last Ten Fiscal Years
151
Table 18
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 4 4 4 4 4 4 4 4 4 4
Source: Various City departments
Function
Fiscal Years
City of Edina, Minnesota
Capital Asset Statistics by Function
Last Ten Fiscal Years