HomeMy WebLinkAbout2025 Annual Comprehensive Financial Report
City of Edina, Minnesota
Annual Comprehensive Financial Report
Fiscal Year Ended December 31, 2025
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 3
Organizational Chart 4
Letter of Transmittal 5
Certificate of Achievement for Excellence in Financial Reporting 9
Financial Section
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 32
Statement of Activities 33
Fund Financial Statements
Balance Sheet – Governmental Funds 34
Reconciliation of the Balance Sheet to the Statement of Net Position
– Governmental Funds 35
Statement of Revenues, Expenditures, and Changes in Fund Balances
– Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Statement of Activities – Governmental Funds 37
Statement of Net Position – Proprietary Funds 38
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds 39
Statement of Cash Flows – Proprietary Funds 40
Statement of Fiduciary Net Position – Custodial Funds 41
Statement of Changes in Fiduciary Net Position – Custodial Funds 41
Notes to Basic Financial Statements 45
Required Supplementary Information
Statement of Revenues, Expenditures, and Changes in Fund Balances
– Budget and Actual – General Fund 94
Schedule of Revenues, Expenditures, and Changes in Fund Balances
– Budget and Actual – Housing and Redevelopment Authority (HRA) Fund 98
Schedule of City's Proportionate Share of Net Pension Liability
– General Employees Retirement Fund 99
Schedule of City's Proportionate Share of Net Pension Liability
– Public Employees Police and Fire Retirement Fund 99
Schedule of City Contributions – General Employees Retirement Fund 100
Schedule of City Contributions – Public Employees Police and Fire
Retirement Fund 100
Schedule of Changes in Total OPEB Liability and Related Ratios 101
Notes to Required Supplementary Information 112
Supplementary Information
Nonmajor Governmental Funds – Special Revenue Funds 115
Combining Balance Sheet 116
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 117
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Community Development Block Grant 118
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Police 119
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Braemar Memorial 120
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual – Pedestrian and Cyclist Safety 121
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Conservation and Sustainability 122
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Opioid Settlement 123
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Public Safety Fund 124
Major Governmental Funds 125
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Governmental Fund – Debt Service 126
Schedule of Revenues, Expenditures, and Changes in Fund Balance
– Budget and Actual – Governmental Fund – Construction Capital Projects 127
Nonmajor Proprietary Funds - Enterprise Funds 129
Combining Statement of Net Position 130
Combining Statement of Revenues, Expenses, and Changes in Net Position 131
Combining Statement of Cash Flows 132
Fiduciary Funds – Custodial Funds 133
Statement of Fiduciary Net Position 134
Statement of Changes in Fiduciary Net Position 134
Schedule of Balance Sheet Accounts – Tax Increment Financing Districts 135
Schedule of Revenues, Expenditures, and Changes in Fund Balances
– Tax Increment Financing Districts 136
Statistical Section (Unaudited) Table Page
Financial Trends
Net Position by Component 1 140
Change in Net Position 2 141
Fund Balances of Governmental Funds 3 142
Changes in Fund Balances of Governmental Funds 4 143
Revenue Capacity
Taxable and Estimated Market Values of Taxable Property 5 144
Property Tax Rates – Direct and Overlapping Governments 6 145
Principal Property Taxpayers 7 146
Property Tax Levies and Collations 8 147
Debt Capacity
Legal Debt Margin Information 9 148
Ratios of Outstanding Debt by Type 10 149
Direct and Overlapping Governmental Activities Debt 11 150
Legal Debt Margin Information 12 151
City of Edina
Table of Contents
Statistical Section (Unaudited) (Continued) Table Page
Demographic and Economic Information
Pledged Revenue Coverage 13 152
Demographic and Economic Statistics 14 153
Principal Employers 15 154
Full-Time City Government Employees by Function 16 155
Operating Indicators by Function 17 156
Capital Asset Statistics by Function 18 157
1
INTRODUCTORY SECTION
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City of Edina
Elected Officials and Administration
December 31, 2025
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, 2025
June 5, 2026
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 31,2025.
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, 2025. 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 of Edina is a fully developed first-ring suburb of Minneapolis. The City is home to a residential
population of 54,785 and also has strong daytime population with more than 67,000 jobs. The residential
population is slowly increasing and the employment conditions are stable. The City occupies a land area
of 16 square miles. The majority of the City consists of strong residential neighborhoods (60% of land
area). 15% of the City is used for commercial, industrial and public/semi-public uses. 21% of the City is
used for parks and open spaces. The balance of the land (4%) is used for roadways. Incorporated in 1888,
the City is empowered to levy a property tax on real 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.
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The Council is required to adopt a final budget by no later than the close of the previous fiscal year. The
annual budget serves as the foundation for the City’s financial planning and control. The budget is
prepared by fund, function (e.g., public safety), and department (e.g., police). Department heads may use
resources within a department as they see fit. The City Manager may authorize transfers of budgeted
amounts between departments.
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 67,000 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 $31,253,577 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 $6,337,486 above the goal range identified in the policy.
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Pa Thao, Finance Director
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.
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, 2024. This was the fifteenth
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,
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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FINANCIAL SECTION
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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, 2025, 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, 2025,
and the respective changes in financial position, and, where applicable, cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States of
America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (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.
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 the Governmental Accounting Standards Board (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
June 5, 2026, 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
June 5, 2026
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
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, 2025. 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 $437,332,256, resulting in a
positive net position. Of this amount, $75,631,751 represents unrestricted net position which
is available to support the City's ongoing operations and financial obligations in line with its
established fund designations and fiscal policies.
The City's total net position increased by $49,561,447 compared to the prior year. Of this
growth, $38,408,216 resulted from Governmental Activities, while $11,153,231 came from
Business-Type Activities.
• At the close of the 2025 fiscal year, the City's governmental funds reported combined ending
fund balances of $154,019,326, an increase of $2,898,230 from the prior year. The growth
was driven primarily by increases in the Housing and Redevelopment Authority fund of
$997,036, the construction fund of $14,283,714, and the general fund of $5,027,059, partially
offset by a decrease of $16,714,031 in the debt service fund and $695,548 in nonmajor
governmental funds.
• At the end of the current fiscal year, unassigned fund balance for the general fund was
$31,253,577, or 50% of total general fund expenditures.
• The City's total bonded debt increased by $2,421,000 during the current fiscal year from
$186,366,00 at the end of 2024 due to the debt issuance of General Obligation Bonds, Series
2025A in the amount of $22,345,000 & Series 2025B in the amount of $8,785,000, offset by
scheduled principal bond payments which included a $17,000,000 repayment of the 2022B
temporary CIP bonds.
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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government-Wide Financial Statements (Continued)
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.
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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Governmental Funds (Continued)
The City maintains four individual major governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the general fund, Housing and Redevelopment
Authority fund, debt service fund, and the construction fund.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds are provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all governmental and proprietary funds. A
budgetary comparison statement has been provided for all governmental funds to demonstrate
compliance with these budgets.
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 Basic 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.
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Other Information
The combining and individual fund financial statements and schedules referred to earlier in
connection with nonmajor governmental and enterprise funds, as well as internal service funds, are
presented immediately following the required supplementary information. Supplementary financial
information and the statistical section are the final two items presented.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $437,332,256 at the close of the most recent fiscal year.
The largest portion of the City's net position ($269,242,363 or 62%) reflects its investment in capital
assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Summary Statements of Net Position
2025 2024 2025 2024 2025 2024
Current and other assets 201,698,330$ 206,044,461$ 73,938,627$ 63,712,665$ 275,636,957$ 269,757,126$
Capital assets 267,180,136 228,852,218 161,016,387 157,273,833 428,196,523 386,126,051
Total assets 468,878,466 434,896,679 234,955,014 220,986,498 703,833,480 655,883,177
Deferred outflows of resources
OPEB plan deferments 1,854,364 2,089,913 172,264 194,145 2,026,628 2,284,058
Pension plan deferments 15,712,087 20,449,008 741,891 835,988 16,453,978 21,284,996
Total deferred outflows
of resources 17,566,451 22,538,921 914,155 1,030,133 18,480,606 23,569,054
Liabilities
Long-term liabilities outstanding 160,949,380 147,001,883 58,564,995 54,998,335 219,514,375 202,000,218
Other liabilities 26,309,768 45,175,059 11,919,526 12,289,340 38,229,294 57,464,399
Total liabilities 187,259,148 192,176,942 70,484,521 67,287,675 257,743,669 259,464,617
Deferred Inflows of Resources
OPEB plan deferments 1,594,819 1,793,307 148,154 166,591 1,742,973 1,959,898
Pension plan deferments 22,401,571 26,347,538 1,959,081 2,438,183 24,360,652 28,785,721
Leases 1,134,536 1,471,186 - - 1,134,536 1,471,186
Total deferred inflows
of resources 25,130,926 29,612,031 2,107,235 2,604,774 27,238,161 32,216,805
Net Position
Net invested in capital assets 161,526,746 131,971,012 107,715,617 102,429,959 269,242,363 234,400,971
Restricted 91,216,438 88,258,611 1,241,704 1,243,768 92,458,142 89,502,379
Unrestricted 21,311,659 15,417,004 54,320,092 48,450,455 75,631,751 63,867,459
Total net position 274,054,843$ 235,646,627$ 163,277,413$ 152,124,182$ 437,332,256$ 387,770,809$
Governmental Activities Business-Type Activities Total
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City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities
A portion of the City's net position ($92,458,142) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position
($75,631,751) may be used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all of the
categories of net position reported, both for the government as a whole, as well as for its separate
governmental and business-type activities. The same situation held true for the prior fiscal year.
There was an increase of $11,764,292 in unrestricted net position. This was mainly due to positive
operations.
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, offset by regular scheduled payments on the City's
outstanding bonds.
As shown on the following page, the City's net position increased by $49,561,447 during the current
fiscal year. Factors contributing to this change are discussed in the next two sections.
22
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
Changes in Net Position
2025 2024 2025 2024 2025 2024
Revenues
Program revenues
Charges for services 18,215,168$ 15,612,510$ 59,069,482$ 58,236,983$ 77,284,650$ 73,849,493$
Operating grants and contributions 8,615,771 5,653,563 210,066 225,531 8,825,837 5,879,094
Capital grants and contributions 18,093,522 10,997,515 54,999 - 18,148,521 10,997,515
General revenues
Property taxes 57,829,251 53,412,154 - - 57,829,251 53,412,154
Other taxes 15,928,102 13,066,883 - 4,875 15,928,102 13,071,758
Gain on disposal of assets 262,622 394,009 19,369 52,607 281,991 446,616
Unrestricted investment earnings 6,388,002 3,949,750 2,959,530 1,830,869 9,347,532 5,780,619
Total revenues 125,332,438 103,086,384 62,313,446 60,350,865 187,645,884 163,437,249
Expenses
General government 13,080,465 19,817,993 - - 13,080,465 19,817,993
Public safety 35,649,598 32,565,377 - - 35,649,598 32,565,377
Public works 20,630,137 17,270,199 - - 20,630,137 17,270,199
Parks 10,217,789 9,035,898 - - 10,217,789 9,035,898
Interest on long-term debt 4,457,837 1,993,206 - - 4,457,837 1,993,206
Water - - 7,630,315 6,908,508 7,630,315 6,908,508
Sewer - - 10,022,477 9,258,115 10,022,477 9,258,115
Stormwater - - 5,115,530 4,597,085 5,115,530 4,597,085
Recycling - - 1,810,261 1,884,856 1,810,261 1,884,856
Liquor - - 10,695,186 12,182,004 10,695,186 12,182,004
Aquatic center - - 1,376,667 1,411,631 1,376,667 1,411,631
Golf course - - 5,551,162 5,664,944 5,551,162 5,664,944
Arena - - 3,632,146 3,374,912 3,632,146 3,374,912
Community activity centers - - 5,428,159 5,266,795 5,428,159 5,266,795
Total expenses 84,035,826 80,682,673 51,261,903 50,548,850 135,297,729 131,231,523
Increase in Net Position Before Transfers 41,296,612 22,403,711 11,051,543 9,802,015 52,348,155 32,205,726
Transfers (101,688) 40,144 101,688 (40,144) - -
Increase in net position 41,194,924 22,443,855 11,153,231 9,761,871 52,348,155 32,205,726
Net position - beginning, as previously stated 235,646,627 212,918,469 152,124,182 141,998,293 387,770,809 354,916,762
Change in accounting principle - 284,303 - 364,018 - 648,321
Prior period restatement (2,786,708) - - - (2,786,708) -
Net position - beginning, as restated 232,859,919 213,202,772 152,124,182 142,362,311 384,984,101 355,565,083
Net position December 31 274,054,843$ 235,646,627$ 163,277,413$ 152,124,182$ 437,332,256$ 387,770,809$
TotalBusiness-Type ActivitiesGovernmental Activities
Governmental activities increased the City's net position by $38,408,216, Key elements of the
increase are as follows.
• Property tax revenues increased by $4,417,097. The increase is primarily attributed to a 2.8%
increase in tax capacity and a 3.4% increase in the market value of real properties.
• Other taxes increased by $2,861,219 due to local sales tax. Local sales tax revenue increased
year-over-year despite the tax rate remaining unchanged. The increase is primarily due to
higher sales driven by increased consumer spending, inflationary price increases, and overall
economic expansion within the city.
23
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Governmental Activities (Continued)
• Investment earnings increased by $2,438,252 due to favorable market conditions.
• Other capital grants and contributions increased by $7,096,007 in 2025. The increase is mainly
due to multiple grants and funding sources from the state, county, federal government, and
local partners in support of the TH100 Tight Diamond interchange project.
• Charges for services increased by $2,602,658 due to payment to the Housing and
redevelopment authority from Southdale redevelopment agreement, increase in ambulance
fees, as well as an increase in licenses and permits.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for
Services
15%
Operating Grants
7%
Capital Grants 14%Property Taxes
46%
Other Taxes
13%
Gain on Disposal
of Assets
0%
Investment
Earnings
5%
Revenues by Source -Governmental Activities
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
General
Government
Public Safety Public Works Parks Interest on
Long-Term
Debt
Expenses and Program Revenues -
Governmental Activities
Expenses Revenue
24
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Business-Type Activities
Business-type activities increased net position by $11,153,231, accounting for 22% 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 $12,304,072 for 2025. This
additional equity is used to maintain and invest in the utility infrastructure according to the
City's capital improvement plan and utility rate study.
• The liquor fund had income before contributions and transfers of $400,127 for 2025. This
income is used to subsidize operations at other enterprise facilities.
• The golf course had an income before contributions and transfers of $977,386.
• The other enterprise funds had a loss before contributions and transfers of $2,943,953 in
total. These enterprises had operating expenses that exceeded revenues.
Charges for services95%
Operating
grants and
contributions
0%
Unrestricted
investment
earnings
5%
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
$16,000,000
Expenses and Program Revenues -
Business-Type Activities
Expenses Revenue
25
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
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 $154,019,326, an increase of $2,898,230 in comparison with the prior year.
Approximately 20% of this total amount ($30,851,954) constitutes unassigned fund balance. The
remainder of the fund balance is 1) restricted by external creditors, grantors, laws, or regulations
($107,656,530) or 2) assigned by internal constraints ($15,331,967), or 3) nonspendable in the form of
prepaid items ($178,875).
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 $31,253,577. As a measure of the general fund's
liquidity, unassigned fund balance represents 50% of total general fund expenditures.
At December 31, 2025, the fund balance of the general fund was $35,964,970, an increase of 16.2%,
or $5,027,059, from the 2024 fund balance. Key factors related to this increase include:
• Overall, revenues increased $3,950,900, or 6.2%, from the prior year, increasing from
$63,301,756 to $67,252,656. Property tax revenue increased by $3,505,940 primarily due to
an increase in the tax levy. Property taxes are the main source of revenue for the general
fund and with fluctuations in other sources; these funds are more heavily relied upon.
Licenses and permits revenue increased $858,880 due to an increase in building permits and
rental licenses in 2025. All other categories stayed consistent with the prior years.
• General fund expenditures increased by $3,176,274, or 5.4%, from $58,959,511 to
$62,135,785. Public safety had the largest increase in expenditures of $3,059,663, or 10.3%,
as a result of filling vacant police and fire positions as well as non-capital costs related to the
fire station 2 project. General government expenditures decreased $947,879 due to the deed
grant repayment ending in 2024 as well as Lincoln and Londonderry Small Area Plan consulting
ending in 2024. Parks and recreation expenditures increased $705,294 as a result of hiring a
new facilities coordinator and a digital marking coordinator. There were also significantly
more part-time rink attendants and part-time maintenance hours paid in 2025. All other
categories stayed consistent with the prior years.
The Housing and Redevelopment Authority fund balance increased by $997,036 in the current fiscal
year due to payment for the Southdale redevelopment agreement.
26
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Governmental Funds (Continued)
The debt service fund has a total fund balance of $7,640,287, all of which is restricted for the
payment of debt service. The net decrease in fund balance during the current year in the debt
service fund was $16,714,031. The decrease was the result of $5,273,981 in general property taxes,
$996,250 in intergovernmental revenue, transfers in of $3,634,644, and premium of bonds of
$147,185, offset by $27,033,273 in debt service payments.
The construction fund balance increased by $14,283,714 in 2025. The increase was as a result of
$5,710,061 in general property taxes, $7,427,094 in general sales tax, $4,388,655 in special
assessments, $19,698,830 in intergovernmental revenue, $4,338,706 in investment income, and
$22,190,113 from new bonds issued, offset by $47,430,765 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 $47,571,834. The
total growth in net position from current year operations was $10,818,920. Operating revenues in the
utilities fund increased by $2,447,959, or 7.7%, while expenses increased by $1,016,090, or 4.5% in
2025. The revenue increase was due to changes in rates and more water and sewer connection fees
in 2025. Expenses increased because of an increase in wastewater fees, the York Avenue pond
improvement, and annual storm inspections. This was an increase of $1,431,869 in the operating
income reported in 2024. The utility fund cash and investment balance increased $9,019,766 during
2025 while the unrestricted net position increased $5,479,886 during the same time period. The
utility fund cash and investments exceeded unrestricted net position due to unspent bond proceeds at
the end of the year related to capital projects.
Unrestricted net position of the liquor fund at the end of the year amounted to $236,114.
The liquor fund reported a decrease of $1,566,866, or 12.4%, in sales from prior year along with
decrease in costs of sales of 11.4% or $964,229. Operating expenses in the liquor fund decreased
$703,561 due to changes in cost of goods purchasing strategies. The liquor fund gross profit percentage
remained consistent to prior year. In 2025, the liquor fund cash and investment balance decreased
$788,474 while the unrestricted net position decreased $471,533. 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
2025. The transfers out were greater than operating income of $335,019 in 2025, leading to the
reduction of $594,899 in net position in the liquor fund in 2025.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $967,875
and the restricted net position amounted to $1,241,704. In 2025, the aquatic center fund showed an
operating loss of $236,177. Even though there is an operating loss in 2025, there is an $81,199
improvement in the operating loss compared to the prior year. The aquatic center fund experienced
an increase in operating revenue of $25,564 as a result of more concession sales during the year. The
aquatic center fund operating expenses decreased $55,635 due to less repairs and maintenance.
In 2025, the aquatic center fund cash and investment balance decreased $364,946 while the
unrestricted net position increased $23,859.
27
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (CONTINUED)
Proprietary Funds (Continued)
Unrestricted net position of the golf course fund at the end of the year amounted to $2,103,885, an
improvement of $560,842 from the prior year. In 2025, the fund showed an operating income of
$854,675. This is an increase of $348,848 in the operating income from the prior year. The golf
course fund experienced an increase in operating revenue of $36,899 as a result of early Spring
weather and a demand for outdoor golf. The golf course fund operating expenses decreased $311,949
due to negative pension expense as well as less uniform costs. The golf course fund cash and
investment balance increased $812,314 and the increase directly related to operating income.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of
($326,780), an increase in the deficit by $76,650 from the prior year. The arena fund had an
operating loss of $816,260, an improvement of $173,360 from the prior year. The arena fund had a
decrease in operating revenue of $40,608 due to a decrease in ice rentals as well as a decrease in
concession sales. The arena fund operating expenses increased $132,752 as a result of an increase in
repairs and maintenance. The arena fund cash and investment balance decreased $22,222. The
decrease largely related to operating loss, almost entirely offset by operating transfer in and utility
contribution in.
GENERAL FUND BUDGETARY HIGHLIGHTS
For the year ended December 31, 2025, the City adopted a balanced budget, with the usage of
$1,000,000 from the budget stabilization fund. Actual revenues and transfers in exceeded expenditures
and transfers out by $5,027,059
During the year, revenues were $1,743,785 or 2.7% more than budget, as the continued commercial
and residential redevelopment of the City increased our charges for services exceeded budget by
$1,250,930 as a result of conservative budgeting. Taxes and assessments revenue was under budget
by $1,361,622 due to delinquent balances and less cable franchise taxes than anticipated. Licenses
and permit revenue and intergovernmental revenue exceeded the budget by $965,962 and $866,529,
respectively, due to conservative budgeting.
During the year, expenditures were under budget by $3,180,086 or 4.9%. Public works expenditures
were under budget by $1,452,449 due to conservative budgeting for increasing costs. Public safety
expenditures were under budget by $1,092,770 as a result of staff vacancies during the year. The
other sources of expenditures were relatively consistent with the 2025 budget.
28
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
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, 2025, amounted to $428,196,523 (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 $42,070,472.
Major capital asset events during the current fiscal year included the following:
• Construction in progress for utility infrastructure improvements reached $47,198,328 at fiscal
year-end, reflecting ongoing water, sanitary sewer, and storm sewer projects.
• Construction in progress for street, sidewalk, and park projects reached $33,462,365 at fiscal
year-end, reflecting ongoing work such as the TH100 Diverging Diamond Interchange, Concord
B/C, Presidents A/B, and France Ave Sidewalk Phase I.
• The City has a number of public improvements underway in the Grandview district including
parking garage and roadway enhancements. The construction in progress for these projects
total $5,653,840 at the close of the fiscal year.
• The new fire station 2 construction was completed in 2025 and the construction in progress at
the end of the fiscal year was $41,787,992.
• Improvements to Braemar Arena and Fred Richards Park construction in progress was at
$5,912,746 at the close of the fiscal year.
City of Edina's Capital Assets (Net of Depreciation)
2025 2024 2025 2024 2025 2024
Land and land improvements 27,445,727$ 24,740,033$ 8,036,730$ 8,719,256$ 35,482,457$ 33,459,289$
Easements 253,000 253,000 35,600 35,600 288,600 288,600
Building and structures 29,795,788 29,798,262 11,403,984 12,898,481 41,199,772 42,696,743
Machinery and equipment 15,644,616 14,597,485 5,378,464 5,410,771 21,023,080 20,008,256
Infrastructure 85,177,895 78,634,322 87,297,803 85,506,493 172,475,698 164,140,815
Parks 9,060,260 8,249,106 823,826 880,483 9,884,086 9,129,589
Construction in progress 99,268,208 72,473,695 47,594,697 43,187,759 146,862,905 115,661,454
Subscription assets 532,193 - - - 532,193 -
Lease assets 2,449 106,315 445,283 634,990 447,732 741,305
Total 267,180,136$ 228,852,218$ 161,016,387$ 157,273,833$ 428,196,523$ 386,126,051$
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 $188,787,000, an
increase of $2,421,000 from 2024. $60,590,000 is for general obligation improvement debt that is
supported by property tax levies and special assessments.
29
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Long-Term Debt (Continued)
$27,014,000 is for permanent improvement revolving (PIR) bonds, which finances the City's Street
reconstruction program. This amount increased from 2024 due to new bond issues offset by regularly
scheduled principal payment.
Also outstanding is $20,715,000 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 decreased from 2024 due to regularly scheduled principal payments.
$12,140,000 is for tax increment financing bonds, for improvements within tax increment districts.
This amount decreased from 2024 due to scheduled bond principal payments. Minnesota state aid
street bonds has an outstanding balance of $9,470,000 for Municipal state aid eligible costs repaid
from future state-aid allotments. $3,065,000 is for housing improvement area bonds issued to finance
common area housing improvements within the Edina West Condominium Association Housing
Improvement to be supported by special assessments.
Outstanding Debt
2025 2024 2025 2024 2025 2024
General Obligation Bonds 60,590,000$ 60,315,000$ -$ -$ 60,590,000$ 60,315,000$
Permanent Improvement Bonds 27,014,000 26,719,000 - - 27,014,000 26,719,000
Public Project Revenue Bonds 20,715,000 21,850,000 - - 20,715,000 21,850,000
Tax Increment Financing Bonds 12,140,000 12,410,000 - - 12,140,000 12,410,000
Minnesota State Aid Street Bonds 9,470,000 9,980,000 - - 9,470,000 9,980,000
Housing Improvement Area (HIA) Bonds 3,065,000 3,065,000 - - 3,065,000 3,065,000
Revenue Bonds - - 55,793,000 52,027,000 55,793,000 52,027,000
Total 132,994,000$ 134,339,000$ 55,793,000$ 52,027,000$ 188,787,000$ 186,366,000$
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 $516,568,938. Only
$84,370,000 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.
30
City of Edina
Management's Discussion and Analysis
Year Ended December 31,2025
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET (CONTINUED)
Since 2021, market values have continued to rise. From 2024 to 2025, the City's tax capacity
increased by $5,824,183, or 2.8%. During the same period, the estimated market value of real estate
grew by 3.4% for taxes payable in 2025 (based on 2024 market values).
$13,344,357,600
$13,796,381,100
$15,461,411,000 $16,647,040,500 $17,218,964,600
$164,716,554 $169,928,228 $190,473,325 $205,645,781 $211,469,964
$-
$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
2021 2022 2023 2024 2025
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 3.4% in 2024 for taxes payable in 2025
and remained positive for the eleventh consecutive year.
All these factors above were considered in preparing the City's budget for the 2025 fiscal year. The
City's adopted 2025 budget includes a property tax levy of $59,010,154 for all funds, an increase of
8.4% from the 2024 levy, with the increase being attributed to the scheduled increase to the street
reconstruction levy, which will eventually replace special assessments for road reconstruction. The
increased levies are also for the City's equipment replacement expenditures, HRA operating
expenditures, and general operating levy.
Financial Contact
This financial report is designed to provide a general overview of the City's finances for all those with
an interest in the government's finances. Questions concerning any of the information provided in
this report or requests for additional financial information should be addressed to the Office of the
Finance Director, 4801 West 50th Street, Edina, Minnesota 55424. The City's Annual Comprehensive
Financial Report can also be found on the internet at www.edinamn.gov.
31
BASIC FINANCIAL STATEMENTS
See notes to basic financial statements. 32
Governmental
Activities
Business-Type
Activities Total
Assets
Current assets
Cash and investments (including cash equivalents) 147,772,753$ 59,210,657$ 206,983,410$
Temporarily restricted cash 6,953,545 - 6,953,545
Accrued interest 1,080,198 360,381 1,440,579
Accounts receivable 1,113,495 8,823,405 9,936,900
Delinquent taxes receivable 224,205 - 224,205
Special assessments receivable 23,815,971 608,314 24,424,285
Due from other governments 4,178,494 - 4,178,494
Lease receivable 1,383,486 - 1,383,486
Internal balances (2,678,039) 2,678,039 -
Inventory - 1,677,462 1,677,462
Prepaid items 852,920 580,369 1,433,289
Total current assets 184,697,028 73,938,627 258,635,655
Noncurrent assets
Loan receivable 15,230,949 - 15,230,949
Equity interest in joint venture 1,770,353 - 1,770,353
Nondepreciable capital assets 121,080,796 47,915,637 168,996,433
Depreciable capital assets (Net)146,099,340 113,100,750 259,200,090
Total noncurrent assets 284,181,438 161,016,387 445,197,825
Total assets 468,878,466 234,955,014 703,833,480
Deferred Outflows of Resources
Defined benefit pension plans 15,712,087 741,891 16,453,978
OPEB plan deferments 1,854,364 172,264 2,026,628
Total deferred outflows of resources 17,566,451 914,155 18,480,606
Liabilities
Current liabilities
Accounts payable 6,053,515 2,591,673 8,645,188
Salaries payable 2,803,785 746,575 3,550,360
Accrued interest payable 2,012,666 828,482 2,841,148
Contracts payable 255,000 307,662 562,662
Due to other governments 1,136,519 224,349 1,360,868
Deposits payable 2,659,278 - 2,659,278
Unearned revenue 1,685,464 566,726 2,252,190
Total OPEB liability 120,423 10,237 130,660
Compensated absences payable 2,965,465 490,708 3,456,173
Bonds and loans payable, net 6,408,000 5,977,000 12,385,000
Lease liability 2,563 176,114 178,677
Subscription liability 207,090 - 207,090
Total current liabilities 26,309,768 11,919,526 38,229,294
Noncurrent liabilities
Total OPEB liability 4,469,220 416,125 4,885,345
Net pension liability 17,133,045 2,900,663 20,033,708
Compensated absences payable 4,448,197 736,063 5,184,260
Bonds and loans payable, net 134,571,841 54,223,733 188,795,574
Lease liability - 288,411 288,411
Subscriptions payable 327,077 - 327,077
Total noncurrent liabilities 160,949,380 58,564,995 219,514,375
Total liabilities 187,259,148 70,484,521 257,743,669
Deferred Inflows of Resources
Defined benefit pension plans 22,401,571 1,959,081 24,360,652
OPEB plan deferments 1,594,819 148,154 1,742,973
Leases 1,134,536 - 1,134,536
Total deferred inflows of resources 25,130,926 2,107,235 27,238,161
Net Position
Net investment in capital assets 161,526,746 107,715,617 269,242,363
Restricted for
Tax increments 31,429,140 - 31,429,140
Debt service 7,931,982 1,241,704 9,173,686
Affordable housing 4,151,218 - 4,151,218
Highway construction 17,653,450 - 17,653,450
Capital projects 25,460,909 - 25,460,909
Parkland dedication 48,430 - 48,430
Police 1,120,734 - 1,120,734
Braemar golf donations 133,030 - 133,030
Conservation and sustainablity initiatives 1,176,152 - 1,176,152
Public safety 1,838,751 - 1,838,751
Opioid epidemic responses 272,642 - 272,642
Unrestricted 21,311,659 54,320,092 75,631,751
Total net position 274,054,843$ 163,277,413$ 437,332,256$
City of Edina
Statement of Net Position
December 31, 2025
32
See notes to basic financial statements. 33
Program Revenues
Expenses
Charges for
Services
Operating Grants
and
Contributions
Capital Grants
and
Contributions
Governmental
Activities
Business-Type
Activities Total
Governmental activities
General government 13,080,465$ 3,541,521$ 2,244,863$ -$ (7,294,081)$ -$ (7,294,081)$
Public safety 35,649,598 12,547,310 2,625,423 - (20,476,865) - (20,476,865)
Public works 20,630,137 1,108,853 3,619,628 18,093,522 2,191,866 - 2,191,866
Parks 10,217,789 1,017,484 125,857 - (9,074,448) - (9,074,448)
Interest on long-term debt 4,457,837 - - - (4,457,837) - (4,457,837)
Total governmental activities 84,035,826 18,215,168 8,615,771 18,093,522 (39,111,365) - (39,111,365)
Business-type activities
Water 7,630,315 13,473,414 - - - 5,843,099 5,843,099
Sewer 10,022,477 12,220,680 - - - 2,198,203 2,198,203
Stormwater 5,115,530 6,937,782 - 54,999 - 1,877,251 1,877,251
Recycling 1,810,261 1,763,551 201,175 - - 154,465 154,465
Liquor 10,695,186 11,074,302 - - - 379,116 379,116
Aquatic Center 1,376,667 1,143,074 - - - (233,593) (233,593)
Golf Course 5,551,162 6,328,908 - - - 777,746 777,746
Arena 3,632,146 2,813,362 - - - (818,784) (818,784)
Community activity centers 5,428,159 3,314,409 8,891 - - (2,104,859) (2,104,859)
Total business-type activities 51,261,903 59,069,482 210,066 54,999 - 8,072,644 8,072,644
Total primary government 135,297,729$ 77,284,650$ 8,825,837$ 18,148,521$ (39,111,365) 8,072,644 (31,038,721)
General revenues
Property taxes 57,829,251 - 57,829,251
Franchise fees 3,652,054 - 3,652,054
Tax increments 4,817,402 - 4,817,402
Lodging taxes 31,552 - 31,552
General sales tax 7,427,094 - 7,427,094
Unrestricted investment earnings 6,388,002 2,959,530 9,347,532
Gain on sale of capital assets 262,622 19,369 281,991
Transfers (101,688) 101,688 -
Total general revenues and transfers 80,306,289 3,080,587 83,386,876
Change in net position 41,194,924 11,153,231 52,348,155
Net position - beginning, as previously stated 235,646,627 152,124,182 387,770,809
Prior period restatement (see note 17)(2,786,708) - (2,786,708)
Net position - beginning, as restated 232,859,919 152,124,182 384,984,101
Net position - ending 274,054,843$ 163,277,413$ 437,332,256$
Functions/Programs
City of Edina
Statement of Activities
Year Ended December 31, 2025
Net (Expense) Revenues
and Changes in Net Position
See notes to basic financial statements. 34
General
Housing and
Redevelopment
Authority Debt Service Construction
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 42,440,477$ 21,508,387$ 1,423,365$ 71,410,894$ 4,244,421$ 141,027,544$
Restricted cash and
investments - - 6,953,545 - - 6,953,545
Accrued interest 385,895 138,038 23,176 507,748 25,341 1,080,198
Accounts receivable 213,263 19,367 - 93,857 681,201 1,007,688
Taxes receivable 166,389 3,950 22,154 31,712 - 224,205
Special assessments receivable - 4,666,620 1,510,457 17,638,894 - 23,815,971
Leases receivable 1,383,486 - - - - 1,383,486
Due from other funds - - - 373,866 - 373,866
Due from other governments 460,946 137,643 11,951 3,387,137 180,817 4,178,494
Prepaid items 168,043 - - - 10,832 178,875
Loans receivable - 15,230,949 - - - 15,230,949
Total assets 45,218,499$ 41,704,954$ 9,944,648$ 93,444,108$ 5,142,612$ 195,454,821$
Liabilities
Accounts payable 1,021,075$ 1,134,312$ -$ 3,116,621$ 408,454$ 5,680,462$
Salaries payable 2,606,523 9,894 - 7,366 23,963 2,647,746
Contracts payable - - - 218,117 36,883 255,000
Due to other funds - - - - 373,866 373,866
Due to other governments 812,178 251,921 - 32,417 6,683 1,103,199
Deposits payable 2,612,204 47,074 - - - 2,659,278
Unearned revenue 900,624 13,000 771,750 - 90 1,685,464
Total liabilities 7,952,604 1,456,201 771,750 3,374,521 849,939 14,405,015
Deferred Inflows of Resources
Unavailable revenue - taxes 166,389 3,950 22,154 31,712 - 224,205
Unavailable revenue - special assessments - 4,664,445 1,510,457 17,621,738 - 23,796,640
Unavailable revenue - other - - - 1,732,944 142,155 1,875,099
Leases 1,134,536 - - - - 1,134,536
Total deferred inflows of resources 1,300,925 4,668,395 1,532,611 19,386,394 142,155 27,030,480
Fund Balances
Nonspendable 168,043 - - - 10,832 178,875
Restricted 48,430 35,580,358 7,640,287 59,846,146 4,541,309 107,656,530
Assigned 4,494,920 - - 10,837,047 - 15,331,967
Unassigned 31,253,577 - - - (401,623) 30,851,954
Total fund balances 35,964,970 35,580,358 7,640,287 70,683,193 4,150,518 154,019,326
Total liabilities, deferred inflows of
resources, and fund balance 45,218,499$ 41,704,954$ 9,944,648$ 93,444,108$ 5,142,612$ 195,454,821$
City of EdinaBalance Sheet - Governmental Funds
December 31, 2025
See notes to basic financial statements. 35
City of Edina
Reconciliation of the Balance Sheet to
the Statement of Net Position - Governmental Funds
December 31, 2025
Total fund balances - governmental funds 154,019,326$
Cost of capital assets 450,139,272
Less accumulated depreciation/amortization (184,112,510)
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 224,205
Special assessments 23,796,640
Other 1,875,099
Long-term liabilities are included in net position but are excluded from fund balances until due
and payable:
Bonds payable (132,994,000)
Premium on bonds (7,235,841)
Loan payable (750,000)
Subscription liability (69,683)
Lease liability (2,563)
Interest payable (2,012,666)
Compensated absences payable (7,413,662)
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 (1,594,819)
Deferred outflows of resources related to OPEB 1,854,364
Total OPEB liability (4,589,643)
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 (22,401,571)
Deferred outflows of resources related to pensions 15,712,087
Net pension liability (17,133,045)
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. 4,973,500
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 274,054,843$
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. 36
General
Housing and
Redevelopment
Authority Debt Service Construction
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Revenues
General property taxes 46,582,974$ 255,379$ 5,273,981$ 5,710,061$ -$ 57,822,395$
Tax increment collections - 4,817,402 - - - 4,817,402
Franchise taxes 687,067 - - 206,120 2,758,867 3,652,054
Lodging tax 31,552 - - - - 31,552
General sales tax - - - 7,427,094 - 7,427,094
Special assessments - 278,325 187,805 4,388,655 - 4,854,785
License and permits 6,787,920 - - 55,514 - 6,843,434
Intergovernmental 3,320,489 1,037,882 996,250 19,698,830 310,833 25,364,284
Charges for services 7,563,486 - - 291,174 - 7,854,660
Fines and forfeitures 773,992 - - - - 773,992
Investment income 662,952 1,074,395 79,377 4,338,706 232,572 6,388,002
Rental of property 615,976 - - - - 615,976
Other revenues 226,248 1,705,809 - 128,976 354,512 2,415,545
Total revenues 67,252,656 9,169,192 6,537,413 42,245,130 3,656,784 128,861,175
Expenditures
Current
General government 10,343,072 3,565,028 - 70,847 - 13,978,947
Public safety 32,793,465 - - 786,182 202,841 33,782,488
Public works 10,846,809 - - 1,444,326 882,731 13,173,866
Parks 7,919,530 - - 241,115 6,225 8,166,870
Capital outlay
General government 203,057 1,134,638 - 17,689,263 - 19,026,958
Public safety - - - 14,645,983 490,284 15,136,267
Public works - - - 7,212,749 2,770,251 9,983,000
Parks - - - 5,340,300 - 5,340,300
Debt Service
Principal 29,750 - 22,705,000 - - 22,734,750
Interest and fiscal charges 102 - 4,328,273 - - 4,328,375
Total expenditures 62,135,785 4,699,666 27,033,273 47,430,765 4,352,332 145,651,821
Revenues over (under) expenditures 5,116,871 4,469,526 (20,495,860) (5,185,635) (695,548) (16,790,646)
Other Financing Sources (Uses)
Transfers in 225,664 - 3,634,644 - - 3,860,308
Transfers out (350,000) (685,782) - (2,948,862) - (3,984,644)
Sale of capital assets 34,524 - - 228,098 - 262,622
Bonds issued - - 147,185 21,212,815 - 21,360,000
Premium on bonds issued - - - 977,298 - 977,298
Total other financing
sources (uses)(89,812) (685,782) 3,781,829 19,469,349 - 22,475,584
Net Increase (Decrease)
in Fund Balance 5,027,059 3,783,744 (16,714,031) 14,283,714 (695,548) 5,684,938
Fund Balance - beginning, as
previously stated 30,937,911 34,583,322 24,354,318 56,399,479 4,846,066 151,121,096
Prior period restatement (see note 17)- (2,786,708) - - - (2,786,708)
Fund Balance - beginning, as restated 30,937,911 31,796,614 24,354,318 56,399,479 4,846,066 148,334,388
Fund Balance - end of year 35,964,970$ 35,580,358$ 7,640,287$ 70,683,193$ 4,150,518$ 154,019,326$
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds
Year Ended December 31, 2025
See notes to basic financial statements. 37
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
Year Ended December 31, 2025
5,684,938$
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 49,612,639
Depreciation/amortization expense (11,785,984)
Loss on disposal of capital assets (45,487)
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. (4,014,806)
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 (21,360,000)
Premium on bonds issued (977,298)
Bond principal payments and adjustments 22,705,000
Lease principal payments and adjustments 3,006
Subscription principal payments and adjustments 26,744
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 804,778
Accrued interest payable (934,240)
Compensated absences (307,421)
OPEB (445,471)
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 1,280,433
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. 948,093
Change in net position - governmental activities 41,194,924$
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
City of Edina
See notes to basic financial statements. 38
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)49,430,052$ 524,749$ 1,852,867$ 4,232,253$ 408,009$ 2,762,727$ 59,210,657$ 6,745,209$
Interest receivable 288,978 7,115 15,604 31,457 2,871 14,356 360,381 -
Accounts receivable, net 8,126,360 108,218 - 68,894 245,811 274,122 8,823,405 105,807
Special assessments receivable 608,314 - - - - - 608,314 -
Due from other funds - - 394,618 - - - 394,618 -
Prepaid expenses 579,152 - 521 696 - - 580,369 674,045
Inventory 31,034 1,476,586 - 169,842 - - 1,677,462 -
Total current assets 59,063,890 2,116,668 2,263,610 4,503,142 656,691 3,051,205 71,655,206 7,525,061
Noncurrent assets
Net capital assets 139,003,413 1,110,119 600,188 8,794,736 4,808,176 6,699,755 161,016,387 1,153,374
Total assets 198,067,303 3,226,787 2,863,798 13,297,878 5,464,867 9,750,960 232,671,593 8,678,435
Deferred Outflows of Resources
OPEB deferred outflows 42,154 32,426 - 38,911 18,848 39,925 172,264 -
Pension deferred outflows 209,668 151,953 7,544 143,357 79,988 149,381 741,891 -
Total deferred outflows of resources 251,822 184,379 7,544 182,268 98,836 189,306 914,155 -
Liabilities
Current liabilities
Accounts payable 1,263,618 464,943 - 373,160 268,319 221,633 2,591,673 373,053
Salaries payable 215,716 122,349 3,568 141,846 93,857 169,239 746,575 156,039
Accrued interest payable 732,209 - 3,250 73,894 19,129 - 828,482 -
Contracts payable 295,832 - - 11,830 - - 307,662 -
Due to other funds - - - - - 394,618 394,618 -
Due to other governments 29,381 150,863 22 19,526 10,766 13,791 224,349 33,320
Unearned revenue - 17,037 - 523,885 3,634 22,170 566,726 -
Compensated absences payable 126,714 82,493 2,127 152,156 39,914 87,305 490,708 -
Total OPEB liability - current 2,505 1,927 - 2,312 1,120 2,373 10,237 -
Bonds payable - current 4,930,000 - 95,000 665,000 287,000 - 5,977,000 -
Lease liability - current - - - 167,752 8,362 - 176,114 -
Subscription liability- current - - - - - - - 464,484
Total current liabilities 7,595,975 839,612 103,967 2,131,361 732,101 911,129 12,314,144 1,026,896
Noncurrent liabilities
Total OPEB liability 101,829 78,329 - 93,995 45,529 96,443 416,125 -
Net pension liability 819,768 594,109 29,496 560,498 312,737 584,055 2,900,663 -
Compensated absences payable 190,070 123,739 3,191 228,233 59,872 130,957 736,063 -
Bonds payable, net of unamortized
discounts and premiums 47,623,758 - 104,639 4,799,953 1,695,383 - 54,223,733 -
Lease liability - - - 286,993 1,418 - 288,411 -
Total noncurrent liabilities 48,735,425 796,177 137,326 5,969,672 2,114,939 811,455 58,564,995 -
Total liabilities 56,331,400 1,635,789 241,293 8,101,033 2,847,040 1,722,584 70,879,139 1,026,896
Deferred Inflows of Resources
OPEB deferred inflows 36,254 27,888 - 33,465 16,210 34,337 148,154 -
Pension deferred inflows 553,664 401,256 19,921 378,555 211,220 394,465 1,959,081 -
Total deferred intflows of resources 589,918 429,144 19,921 412,020 227,430 428,802 2,107,235 -
Net Position
Net investment in capital assets 93,825,973 1,110,119 400,549 2,863,208 2,816,013 6,699,755 107,715,617 688,890
Restricted for Edina Law Debt - - 1,241,704 - - - 1,241,704 -
Unrestricted 47,571,834 236,114 967,875 2,103,885 (326,780) 1,089,125 51,642,053 6,962,649
Total net position 141,397,807$ 1,346,233$ 2,610,128$ 4,967,093$ 2,489,233$ 7,788,880 160,599,374$ 7,651,539$
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. 2,678,039
Net position of business-type activities 163,277,413$
Business-Type Activities - Enterprise Funds
City of Edina
Statement of Net Position - Proprietary Funds
December 31, 2025
See notes to basic financial statements. 39
Governmental
Activities
Utilities Liquor Aquatic Center Golf Course Arena
Nonmajor
Enterprise
Funds
Total
Enterprise
Funds
Internal
Service Funds
Operating Revenues
Sales - liquor -$ 10,838,729$ -$ -$ -$ -$ 10,838,729$ -$
Sales - retail - 235,573 2,296 426,958 26,393 5,241 696,461 -
Sales - utilities 31,655,419 - - - - - 31,655,419 -
Sales - concessions - - 171,095 8,321 301,272 122,841 603,529 -
Memberships - - 277,895 336,885 - 171,713 786,493 -
Admissions - - 609,276 1,278,754 17,647 758,273 2,663,950 -
Building rental - - 82,512 214,290 2,257,912 798,753 3,353,467 -
Rental of equipment - - - 526,388 6,486 437,326 970,200 -
Greens fees - - - 2,384,889 - 316,737 2,701,626 -
Other fees 2,735,789 - - 1,150,215 203,652 669,789 4,759,445 10,003,651
Total operating revenues 34,391,208 11,074,302 1,143,074 6,326,700 2,813,362 3,280,673 59,029,319 10,003,651
Operating Expenses
Cost of sales and services - 7,466,843 92,996 315,200 141,103 48,085 8,064,227 -
Personal services 3,125,921 1,970,188 661,686 2,610,512 1,341,536 2,616,229 12,326,072 3,224,198
Contractual services 11,159,069 671,393 278,407 729,435 1,281,755 1,112,997 15,233,056 4,013,544
Commodities 1,212,771 48,486 94,132 418,341 69,486 304,291 2,147,507 1,191,698
Internal services 1,642,183 459,007 52,536 457,202 275,494 418,465 3,304,887 -
Depreciation and amortization 6,432,344 123,366 199,494 941,335 520,248 964,700 9,181,487 335,515
Total operating expenses 23,572,288 10,739,283 1,379,251 5,472,025 3,629,622 5,464,767 50,257,236 8,764,955
Operating income (loss)10,818,920 335,019 (236,177) 854,675 (816,260) (2,184,094) 8,772,083 1,238,696
Nonoperating Revenues (Expenses)
Intergovernmental 256,174 - - - - - 256,174 -
Investment income 2,374,455 65,108 133,851 243,564 22,342 120,210 2,959,530 -
Donations - - - - - 35,592 35,592 -
Interest and fiscal charges (1,884,397) - (8,100) (179,294) (47,192) - (2,118,983) -
Amortization of bond premiums (discounts)720,334 - 5,637 56,233 18,201 - 800,405 -
Gain (loss) on sale of capital assets 14,367 - - - - 5,002 19,369 660
Miscellaneous 4,219 - - 2,208 - 7,035 13,462 -
Total nonoperating revenues (expenses)1,485,152 65,108 131,388 122,711 (6,649) 167,839 1,965,549 660
Income (loss) before transfers 12,304,072 400,127 (104,789) 977,386 (822,909) (2,016,255) 10,737,632 1,239,356
Transfers
Transfers in - 4,974 22,726 68,216 531,362 1,090,877 1,718,155 22,648
Transfers out (616,467) (1,000,000) - - - - (1,616,467) -
Total transfers (616,467) (995,026) 22,726 68,216 531,362 1,090,877 101,688 22,648
Change in net position 11,687,605 (594,899) (82,063) 1,045,602 (291,547) (925,378) 10,839,320 1,262,004
Net position - beginning 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
Net position - end of year 141,397,807$ 1,346,233$ 2,610,128$ 4,967,093$ 2,489,233$ 7,788,880$ 160,599,374$ 7,651,539$
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.313,911$
Change in net position of business-type activities 11,153,231$
Business-Type Activities - Enterprise Funds
City of Edina
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds
Year Ended December 31, 2025
See notes to basic financial statements. 40
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 33,561,538$ 11,077,798$ 1,145,848$ 6,482,011$ 2,798,900$ 3,186,130$ 58,252,225$ 10,046,283$
Payments to suppliers (14,932,474) (8,613,851) (519,706) (1,716,684) (1,653,226) (1,862,570) (29,298,511) (5,290,699)
Payments to employees (3,185,024) (2,327,627) (657,008) (2,699,446) (1,384,018) (2,697,601) (12,950,724) (3,210,776)
Net cash flows - operating activities 15,444,040 136,320 (30,866) 2,065,881 (238,344) (1,374,041) 16,002,990 1,544,808
Cash Flows - Noncapital
Financing Activities
Grants and contributions 260,391 - - 2,208 - 42,627 305,226 -
Transfer from other funds - 4,974 22,726 68,216 531,362 1,090,877 1,718,155 22,648
Transfer to other funds (616,467) (1,000,000) - - - - (1,616,467) -
Net cash flows - noncapital
financing activities (356,076) (995,026) 22,726 70,424 531,362 1,133,504 406,914 22,648
Cash Flows - Capital and Related
Financing Activities
Receipts from due from other funds - - - - - 394,618 394,618 -
Payments made on due to other funds - - (394,618) - - - (394,618) -
Payments on special assessments (122,859) - - - - - (122,859) -
Principal paid on debt (4,995,000) - (90,000) (805,615) (287,150) - (6,177,765) 360,674
Interest paid on debt (1,843,136) - (9,601) (189,044) (50,101) (1,308) (2,093,190) -
Bond proceeds 10,853,378 - - - - - 10,853,378 -
Proceeds from disposal of capital assets 14,367 - - - - 5,002 19,369 (15,577)
Acquisition of capital assets (12,347,964) - - (576,077) - - (12,924,041) (790,088)
Net cash flows - capital and related
financing activities (8,441,214) - (494,219) (1,570,736) (337,251) 398,312 (10,445,108) (444,991)
Cash Flows - Investing Activities
Interest and dividends received 2,373,016 70,232 137,413 246,745 22,011 123,904 2,973,321 -
Net change in cash and cash equivalents 9,019,766 (788,474) (364,946) 812,314 (22,222) 281,679 8,938,117 1,122,465
Cash and cash equivalents, January 1 40,410,286 1,313,223 2,217,813 3,419,939 430,231 2,481,048 50,272,540 5,622,744
Cash and cash equivalents, December 31 49,430,052$ 524,749$ 1,852,867$ 4,232,253$ 408,009$ 2,762,727$ 59,210,657$ 6,745,209$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss) 10,818,920$ 335,019$ (236,177)$ 854,675$ (816,260)$ (2,184,094)$ 8,772,083$ 1,238,696$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 6,432,344 123,366 199,494 941,335 520,248 964,700 9,181,487 335,515
Accounts receivable (829,670) 3,506 2,774 43,603 (13,378) (93,294) (886,459) (6,514)
Due from other governments - (10) - 111,708 (1,084) (1,249) 109,365 49,146
Prepaid items (21,736) - - 4,070 - 1,982 (15,684) 75,102
Inventory 12,887 46,261 - (20,563) - - 38,585 -
Accounts payable (717,424) (3,907) (1,627) 208,586 112,212 33,033 (369,127) (183,735)
Contracts payable (171,819) - - 11,830 - (13,747) (173,736) -
Due to other governmental units (20,359) (10,476) (8) (429) 2,400 18,381 (10,491) 23,176
Salaries payable 40,627 (29,040) 570 13,371 3,742 - 29,270 13,422
OPEB 10,128 7,791 - 9,347 4,528 9,591 41,385 -
Pension related activity (141,384) (307,671) (749) (185,650) (64,422) (116,985) (816,861) -
Compensated absences payable 31,526 (28,519) 4,857 73,998 13,670 7,641 103,173 -
Total adjustments 4,625,120 (198,699) 205,311 1,211,206 577,916 810,053 7,230,907 306,112
Net cash flows -
operating activities 15,444,040$ 136,320$ (30,866)$ 2,065,881$ (238,344)$ (1,374,041)$ 16,002,990$ 1,544,808$
Noncash Capital and Related
Financing Activities
Acquisition of capital assets
on account 295,832$ -$ -$ -$ -$ -$ 295,832$ -$
Business-Type Activities - Enterprise Funds
City of Edina
Statement of Cash Flows - Proprietary Funds
Year Ended December 31, 2025
See notes to basic financial statements. 41
Custodial
Funds
Assets
Cash and investments 290,800$
Accounts receivable 11
Due from other governments 900,484
Total assets 1,191,295
Liabilities
Cash overdraft 519,320
Accounts payable 49,246
Salaries payable 26,283
Due to other governments 207,254
Unearned revenue 5,087
Total liabilities 807,190
Net Position
Held in custody for other governmental units 384,105$
Custodial
Funds
Additions
Collections on behalf of others 2,748,672$
Deductions
Payments on behalf of others 2,630,974
Change in net position 117,698
Net Position
Beginning of year 266,407
End of year 384,105$
Year Ended December 31, 2025
Custodial Funds
Custodial Funds
City of Edina
City of Edina
Statement of Fiduciary Net Position
December 31, 2025
Statement of Changes Fiduciary Net Position
42
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43
NOTES TO BASIC FINANCIAL STATEMENTS
44
(THIS PAGE LEFT BLANK INTENTIONALLY)
45
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.
46
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.
47
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.
48
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.
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)
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, 2025 are planned to be
eliminated in 2026. 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.
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)
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.
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)
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, 2025:
Enterprise
Funds
Housing and
Redevelopment Debt
Authority Service Construction Utilities
Special Assessments
Receivable
Current 2,175$ -$ 17,156$ 3,346$
Deliquent 4,848 - 29,284 43,031
Deferred 4,659,597 1,510,457 17,592,454 561,937
Total 4,666,620$ 1,510,457$ 17,638,894$ 608,314$
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.
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)
7. Capital Assets (Continued)
Capital assets are defined by the government as assets with an initial, individual cost of more
than $25,000 (amount not rounded) and an estimated useful life in excess of three years. Assets
in the aggregate of over $50,000 will be recognized as a capital asset even if the per unit value is
under $25,000. Easements with a value of $100,000 or more and a useful life of over one year will
be recognized as a capital asset. 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.
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)
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.
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.
54
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.
55
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.
56
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.
57
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 $220,783 while the balance on the bank
records was $69,436. At December 31, 2025, all of the City's deposits were properly collateralized in
accordance with state statutes.
B. Investments
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
$10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal
Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City's investment
policies specifically address credit risk, further limiting the City's exposure to credit risk by
requiring that all state and local government obligations to be rated "AA" or better by a national
rating agency.
Concentration Risk: This is the risk associated with investing a significant portion of the City's
investment (considered 5% or more) in the securities of a single issuer, excluding U.S. guaranteed
investments (such as Treasuries), investment pools, and mutual funds. The City's investment
policies specifically address the City's desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, there were no required disclosures for
concentration risk.
58
City of Edina
Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Investments (Continued)
Interest Rate Risk: This is the risk of potential variability in the fair value of fixed rate
investment resulting in changes in interest rates (the longer the period for which an interest rate
is fixed, the greater the risk). The City's investment policies specifically address the City's desire
to limit interest rate risk, but do not set specific guidelines for measurement of this risk.
As of December 31, 2025, the City had the following investments and maturities:
Rating Fair Value
Less than 1
year 1-2 years 2-5 years 5+ years
Money Market NR 53,850,130$ 53,850,130$ -$ -$ -$
Certificates of Deposit NR 13,488,078 5,211,412 2,745,520 5,285,827 245,319
Municipal Bonds A+55,977,650 15,346,521 6,262,453 23,743,444 10,625,232
AA+90,292,781 37,894,110 7,140,523 21,885,051 23,373,097
Total Investments 213,608,639$ 112,302,173$ 16,148,496$ 50,914,322$ 34,243,648$
Type of Investments
Investment Maturities
Other Government Backed
Securities
As of December 31, 2025, the City had the following fair value measurements:
Type of Investments Total Level 1 Level 2 Level 3
Certificates of Deposit 13,488,078$ -$ 13,488,078$ -$
Municipal Bonds 55,977,650 - 55,977,650 -
Other Government Backed Securities 90,292,781 - 90,292,781 -
Total investments 159,758,509$ -$ 159,758,509$ -$
Investments at amortized cost 53,850,130$
Total investments 213,608,639$
59
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 69,436$
Petty cash 30,360
Investments 213,608,639
Total cash and investments 213,708,435$
Statement of Net Position
Governmental activities 154,726,298$
Bunisess-type activities 59,210,657
Fiduciary funds (228,520)
Total cash and investments 213,708,435$
60
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2025, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities
Capital assets not being depreciated
Land 21,405,083$ 154,505$ -$ 21,559,588$
Easements 253,000 - - 253,000
Construction in progress 72,473,695 46,095,087 (19,300,574) 99,268,208
Total capital assets
not being depreciated 94,131,778 46,249,592 (19,300,574) 121,080,796
Other capital assets
Land Improvements 17,406,483 3,611,760 - 21,018,243
Buildings and structures 57,743,999 1,514,695 - 59,258,694
Furniture and office equipment 4,256,672 1,474,389 - 5,731,061
Vehicles and equipment 30,589,090 2,288,527 (588,218) 32,289,399
Infrastructure 171,290,045 12,299,249 - 183,589,294
Parks 26,373,205 1,709,993 (36,353) 28,046,845
Vehicles and equipment 14,205 - - 14,205
Subscription based information
technology arrangement assets 503,701 631,037 (503,701) 631,037
Total other assets
at historical cost 308,177,400 23,529,650 (1,128,272) 330,578,778
Less accumulated depreciation for
Land Improvements (14,071,533) (1,060,571) - (15,132,104)
Buildings and structures (27,945,737) (1,517,169) - (29,462,906)
Furniture and office equipment (3,916,359) (116,839) - (4,033,198)
Vehicles and equipment (16,331,918) (2,553,451) 542,732 (18,342,637)
Infrastructure (92,655,723) (5,755,676) - (98,411,399)
Parks (18,124,099) (898,838) 36,353 (18,986,584)
Less accumulated amortization for
Vehicles and equipment (8,817) (2,939) - (11,756)
Subscription based information
technology arrangement assets (402,774) (216,019) 519,939 (98,854)
Total accumulated
depreciation and amortization (173,456,960) (12,121,502) 1,099,024 (184,479,438)
Total capital assets being
depreciated or amortized, net 134,720,440 11,408,148 (29,248) 146,099,340
Governmental activities capital
assets, net 228,852,218$ 57,657,740$ (19,329,822)$ 267,180,136$
61
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended December 31, 2025, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being depreciated
Land 285,341$ -$ -$ 285,341$
Easements 35,600 - - 35,600
Construction in progress 43,187,759 4,406,937 - 47,594,696
Total capital assets not
being depreciated 43,508,700 4,406,937 - 47,915,637
Other capital assets
Land improvements and golf course 26,943,278 39,497 - 26,982,775
Buildings and structures 48,681,534 - - 48,681,534
Furniture and office equipment 228,679 - - 228,679
Vehicles and equipment 17,056,716 879,076 (22,101) 17,913,691
Utility infrastructure 174,705,075 7,598,531 - 182,303,606
Parks 1,133,123 - - 1,133,123
Leased vehciles and equipment 779,443 - - 779,443
Total other capital assets
at historical cost 269,527,848 8,517,104 (22,101) 278,022,851
Less accumulated depreciation for
Land improvements and golf course (18,509,363) (722,021) - (19,231,384)
Buildings and structures (35,783,053) (1,494,500) - (37,277,553)
Furniture and office equipment (197,946) (23,512) - (221,458)
Vehicles and equipment (11,676,678) (887,873) 22,101 (12,542,450)
Utility infrastructure (89,198,582) (5,807,218) - (95,005,800)
Parks (252,640) (56,656) - (309,296)
Less accumulated amortization
Leased vehicles and equipment (144,453) (189,707) - (334,160)
Total accumulated depreciation
and amortization (155,762,715) (9,181,487) 22,101 (164,922,101)
Total other capital assets being
depreciated or amortized, net 113,765,133 (664,383) - 113,100,750
Business-type activities capital
assets, net 157,273,833$ 3,742,554$ -$ 161,016,387$
62
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 656,740$
Public safety 1,547,247
Public works 8,589,297
Parks 1,328,218
Total depreciation and amortization expense - governmental activities 12,121,502$
Business-type activities
Utilities 6,432,344$
Liquor 123,366
Aquatic Center 199,494
Golf Course 941,335
Arena 520,248
Art Center 3,780
Edinborough Park 266,986
Centennial Lakes 165,357
Sports Dome 528,577
Total depreciation and amortization expense - business-type activities 9,181,487$
63
City of Edina
Notes to Basic Financial Statements
NOTE 3 – CAPITAL ASSETS (CONTINUED)
Construction Commitments
At December 31, 2025, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
Project
Number Project Description
ENG25-8 Arden Park BMP Maintenance 82,658$ 19,818$
P&R2308 Braemar Park Improvements 324,902 192,778
P&R23207 Braemar Arena Facility Improvements 90,000 17,327
P&R23200 Fred Richards Park 728,878 74,931
PWK24100 Well 10 Replacement 2,212,030 1,915,176
ENG22015 France Avenue Sidewalk 62nd Street to 60th Street 631,865 6,299
FAC25124 Braemar Golf Course Restroom 246,800 22,040
PWK25104 Public Works Fleet - Bio Diesel 259,373 17,726
P&R23206 Braemar Arena Expansion and Upgrades 472,127 117,327
ENG25-11 Sanitary Sewer CIP 392,715 392,715
ENG25-9 York Avenue Sanitary Sewer Extension 2,660,015 43,135
P&R25119 Aquatic Center Filter Room 5,409,772 3,486,840
ENG25-1 Presidents A/B Roadway Reconstruction 10,070,059 2,481,182
Total 8,787,294$
Contract
Amount
Remaining
Commitment
Commitments above that are significant to the applicable fund include the Aquatic Center Filter
Room and the Presidents A/B Roadway Reconstruction in the Construction Fund and the Well 10
Replacement Project in the Utilities 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, 2025, the City recognized $256,029 and $56,475 in lease revenue and interest revenue,
respectively, pursuant to these contracts.
64
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT
A. General Obligation Bonds
The City has six types of bonded debt outstanding at December 31, 2025: general obligation bonds,
permanent improvement revolving bonds, housing improvement area bonds, tax increment financing
bonds, public project revenue bonds, and G.O. revenue bonds. The first type is payable from general
property taxes. The second type is payable primarily from special assessments with any deficiency to
be provided for by general property taxes. The third type is payable from special assessments on
properties that received common area housing improvements within the Edina West Condominium
Association Housing Improvement Area. The fourth type is payable from future tax increment
payments received. The fifth type is payable solely from annual appropriation lease payments
received from the City of Edina pursuant to a lease between the Edina Housing and Redevelopment
Authority and the City. The sixth type is payable primarily from enterprise revenue with any
deficiency to be provided for by general property taxes. The reporting entity's long-term debt is
segregated between the amounts to be repaid from governmental activities and amounts to be
repaid from business-type activities.
65
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
B. Components of Long-Term Liabilities
Issue Interest Original Final Balance
Date Rates Issue Maturity End of Year
Governmental Activities
General Obligation Bonds
General Obligation, 2016A - Refunding 7/6/2016 2.00-3.00%3,635,000$ 2/1/2028 1,100,000$
General Obligation, 2017C - Refunding 12/14/2017 2.05-4.00%8,955,000 2/1/2029 3,695,000
General Obligation Equipment Certificate, 2019A 6/13/2019 3.00-5.00%2,805,000 2/1/2036 1,400,000
General Obligation, 2021B - Refunding 12/16/2021 5.00%2,515,000 2/1/2030 1,980,000
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
General Obligation, 2025A - CIP - Fire Station 2 8/28/2025 4.125-5.00%10,340,000 2/1/2054 10,340,000
General Obligation, 2025B - CIP - HWY 100 9/2/2025 4.00-5.00%2,105,000 2/1/2041 2,105,000
General Obligation, 2025A - Tax Abatement - Acquatic Center 9/2/2025 4.00-5.00%6,680,000 2/1/2041 6,680,000
Total general obligation bonds 70,325,000 60,590,000
Permanent Improvement Revolving (PIR) Bonds
Permanent Improvement Revolving, 2015A 7/9/2015 2.00-4.00%6,545,000 2/1/2032 3,435,000
Permanent Improvement Revolving, 2015A - Parking 7/9/2015 2.00-4.00%2,495,000 2/1/2036 1,560,000
Permanent Improvement Revolving, 2016A 7/6/2016 2.00-3.00%3,940,000 2/1/2033 2,290,000
Permanent Improvement Revolving, 2017A 6/29/2017 3.00-4.00%1,995,000 2/1/2034 1,320,000
Permanent Improvement Revolving, 2018A 6/27/2018 3.00-4.00%2,210,000 2/1/2035 1,590,000
Permanent Improvement Revolving, 2019A 6/13/2019 3.00-4.00%2,195,000 2/1/2036 1,745,000
Permanent Improvement Revolving, 2020A 6/25/2020 2.00-4.00%390,000 2/1/2037 330,000
Permanent Improvement Revolving, 2020B 12/30/2020 1.09%1,601,000 2/1/2029 714,000
Permanent Improvement Revolving, 2021A 6/24/2021 2.00-4.00%5,480,000 2/1/2043 4,910,000
Permanent Improvement Revolving, 2021B 12/16/2021 5.00%1,280,000 2/1/2030 860,000
Permanent Improvement Revolving, 2022A 7/14/2022 5.00%2,145,000 2/1/2039 2,045,000
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
Permanent Improvement Revolving, 2024A 8/28/2025 4.125-5.00%2,235,000 2/1/2054 2,235,000
Total PIR bonds 36,491,000 27,014,000
66
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
2026 1,930,000$ 2,472,617$ 2,058,000$ 1,021,742$ 1,535,000$ 823,819$
2027 2,665,000 2,481,626 2,275,000 886,712 1,280,000 774,318
2028 3,345,000 2,367,520 2,451,000 802,897 1,330,000 725,288
2029 3,085,000 2,237,913 2,430,000 713,366 1,380,000 673,162
2030 1,850,000 2,127,669 2,410,000 622,006 1,435,000 618,363
2031-2035 8,150,000 9,445,019 9,830,000 1,903,597 8,045,000 2,187,516
2036-2040 10,370,000 7,190,594 4,915,000 531,825 3,885,000 869,875
2041-2045 9,190,000 5,018,484 645,000 21,769 1,825,000 73,700
2046-2050 10,215,000 3,104,188 - - - -
2051-2054 9,790,000 827,524 - - - -
Total 60,590,000$ 37,273,154$ 27,014,000$ 6,503,914$ 20,715,000$ 6,746,041$
Governmental Activities
Revolving BondsGeneral Obligation Bonds Public Project Revenue Bonds
Permanent Improvement
Year Ending
December 31, Principal Interest Principal Interest Principal Interest
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 325,000 375,450 650,000 342,000 110,000 132,940
2031-2035 1,820,000 1,696,250 3,770,000 1,175,750 660,000 562,980
2036-2040 5,070,000 1,079,175 2,745,000 210,375 840,000 377,018
2041-2045 3,740,000 206,250 - - 1,085,000 141,625
Total 12,140,000$ 4,982,025$ 9,470,000$ 3,398,750$ 3,065,000$ 1,802,149$
Governmental Activities
Tax Increment Financing Bonds MSA Bonds HIA Bonds
67
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
2026 2,563$ 27$ -$ 15,000$ 207,090$ 11,034$
2027 - - - 15,000 212,331 5,793
2028 - - - 15,000 114,746 877
2029 - - - 15,000 - -
2030 - - - 15,000 - -
2031-2034 - - 750,000 60,000 - -
Total 2,563$ 27$ 750,000$ 135,000$ 534,167$ 17,704$
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
2026 5,977,000$ 2,309,388$ 176,114$ 5,155$
2027 6,940,000 2,085,369 156,863 2,839
2028 6,328,000 1,808,999 128,275 1,067
2029 5,811,000 1,548,779 3,273 20
2030 5,497,000 1,303,536 - -
2031-2035 20,650,000 3,388,844 - -
2036-2038 4,590,000 288,250 - -
Total 55,793,000$ 12,733,165$ 464,525$ 9,081$
G.O. Improvement Bonds Lease Liability
Business-Type Activies
68
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, 2025, was as follows:
Retirements
Beginning and Other Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities
Bonds payable
General Obligation 60,315,000$ 19,125,000$ (18,850,000)$ 60,590,000$ 1,930,000$
Permanent improvement revolving 26,719,000 2,235,000 (1,940,000) 27,014,000 2,058,000
Public project revenue 21,850,000 - (1,135,000) 20,715,000 1,535,000
Tax increment financing 12,410,000 - (270,000) 12,140,000 280,000
Minnesota state aid streets 9,980,000 - (510,000) 9,470,000 535,000
Housing improvement area 3,065,000 - - 3,065,000 70,000
Less deferred amounts
Premiums on bonds 7,063,321 977,298 (804,778) 7,235,841 -
Total bonds payable 141,402,321 22,337,298 (23,509,778) 140,229,841 6,408,000
Loans payable 750,000 - - 750,000 -
Leases liability 5,569 - (3,006) 2,563 2,563
Subscription liability 124,297 631,180 (221,310) 534,167 207,090
Compensated absences 7,106,241 307,421 - 7,413,662 2,965,465
Total governmental activities
Long-term liabilities 149,388,428$ 23,275,899$ (23,734,094)$ 148,930,233$ 9,583,118$
Business-type activities
Bonds payable
General Obligation Revenue Bonds 52,027,000$ 9,770,000$ (6,004,000)$ 55,793,000$ 5,977,000$
Less deferred amounts
Premiums on bonds 4,124,760 1,083,378 (800,405) 4,407,733 -
Total bonds payable 56,151,760 10,853,378 (6,804,405) 60,200,733 5,977,000
Leases liability 638,290 - (173,765) 464,525 176,114
Compensated absences 1,123,598 103,173 - 1,226,771 490,708
Total business-type activities
long-term liabilities 57,913,648$ 10,956,551$ (6,978,170)$ 61,892,029$ 6,643,822$
The change in the compensated absences liability is presented as a net change.
On August 28, 2025, the City issued $2,235,000 of Permanent Improvement Revolving Bonds,
$3,215,000 of Utility Revenue Bonds for Water, $3,600,000 of Utility Revenue Bonds for Sewer,
$2,955,000 of Utility Revenue for Storm, and $10,340,000 of Capital Improvement Bonds, Series
2025A. On September 2, 2025, the City issued $6,680,000 of Tax Abatement Bonds and $2,105,000 of
Capital Improvement Bonds, Series 2025B. The proceeds from these bonds are being used to finance
road reconstruction projects, a new pump house facility supporting the City's Aquatic Center and
other facility improvement needs, a Community Health and Safety Center facility, and various utility
system infrastructure improvements. The bonds have coupon rates ranging from 4.00% to 5.00%, with
final maturity dates from February 1, 2042, to February 1, 2054.
The City leases various laundry and golf equipment for various terms under long-term, noncancelable
lease agreements. The leases expire at various dates through 2029.
69
City of Edina
Notes to Basic Financial Statements
NOTE 5 – LONG-TERM DEBT (CONTINUED)
C. Changes in Long-Term Liabilities (Continued)
The City has entered into subscription-based-information technology arrangements (SBITAs) for
various IT related applications. The SBITA arrangements expire at various dates through 2028.
Revenue Pledged
Future Revenue pledged for the payment of long-term debt is as follows:
Bonds Issue Use of Proceeds Type
2015B Recreational Facility Bonds Golf Course Improvements Golf 100 %2016-2031 1,063,034$ 176,919$ 6,328,908$
2017B Recreational Facility Bonds Golf Course Improvements Golf 100 2018-2033 4,511,950 566,100 6,328,908
2017B Recreational Facility Bonds Pool Improvements Pool 100 2018-2027 202,900 99,600 1,143,074
2017D Recreational Facility Bonds Arena Improvements Arena 100 2018-2030 696,610 154,350 2,813,362
2021C Recreational Facility Bonds Arena Improvements Arena 100 2023-2033 1,377,925 174,750 2,813,362
2021C Recreational Facility Bonds Golf Dome Improvements Golf 100 2023-2033 350,100 86,025 6,328,908
2015A Utility Revenue Bonds Utility Infastructure Utility 100 2016-2025 - 598,850 35,061,152
2016A Utility Revenue Bonds Utility Infastructure Utility 100 2017-2027 1,992,606 995,613 35,061,152
2017A Utility Revenue Bonds Utility Infastructure Utility 100 2018-2028 2,361,750 783,800 35,061,152
2018A Utility Revenue Bonds Utility Infastructure Utility 100 2019-2029 1,556,675 387,450 35,061,152
2019A Utility Revenue Bonds Utility Infastructure Utility 100 2020-2036 3,683,250 742,125 35,061,152
2020A Utility Revenue Bonds Utility Infastructure Utility 100 2021-2031 3,352,950 556,000 35,061,152
2022A Utility Revenue Bonds Utility Infastructure Utility 100 2023-2038 16,647,250 1,334,000 35,061,152
2023A Utility Revenue Bonds Utility Infastructure Utility 100 2024-2034 10,293,050 1,145,300 35,061,152
2024A Utility Revenue Bonds Utility Infastructure Utility 100 2025-2035 7,527,500 295,000 35,061,152
2025A Utility Revenue Bonds Utility Infastructure Utility 100 2026-2036 12,908,613 - 35,061,152
Pledged
Revenue
Received
Revenue Pledged Current Year
Terms of
Pledge
Remaining
Principal and
Interest
Principal and
Interest Paid
Percent of
Total Debt
Service
70
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 2025 is computed
as follows:
December 31,
2025
Market Value (after fiscal disparities)17,218,964,600$
Debt limit (3% of market value)516,568,938$
Amount of debt applicable to debt limit
Total bonded debt 188,787,000$
Less:
Public improvement revolving bonds (27,014,000)
Tax increment financing bonds (12,140,000)
MSA bonds (9,470,000)
Revenue bonds (55,793,000)
Total debt applicable to debt limit 84,370,000
Legal debt margin 432,198,938$
NOTE 7 – CONDUIT DEBT OBLIGATIONS
As of December 31, 2025, The City of Edina had four series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $24,565,000. 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, 2025 was $2,481,814. 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.
71
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.
72
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 2025 annual increase was 1.25%. Recipients that have
been receiving the annuity or benefit for at least a full year as of the June 30 before the effective
date of the increase will receive the full increase. Recipients receiving the annuity or benefit for 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.
C. Contributions
Minnesota Statutes Chapter 353, 353E, 353G, and 356 set the rates for employer and employee
contributions. Contribution rates can only be modified by the state Legislature.
General Employees Fund Contributions
General Plan members were required to contribute 6.5% of their annual covered salary in fiscal year
2025, 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, 2025, were
$2,011,368. 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 2025, 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, 2025, were
$2,461,147. The City's contributions were equal to the required contributions as set by state statute.
73
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs
General Employees Fund Pension Costs
At December 31, 2025, the City reported a liability of $9,848,457 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 $237,503.
City's proportionate share of the net pension liability 9,848,457$
State of Minnesota's proportionate share of the net pension
liability associated with the City 237,503
Total 10,085,960$
The net pension liability was measured as of June 30, 2025, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The
City's proportionate share of the net pension liability was based on the City's contributions received
by PERA during the measurement period for employer payroll paid dates from July 1, 2024, through
June 30, 2025, relative to the total employer contributions received from all of PERA's participating
employers. The City's proportionate share was 0.2940% at the end of the measurement period and
0.2971% for the beginning of the period.
For the year ended December 31, 2025, the City recognized pension expense of $(253,447) for its
proportionate share of General Employees Plan's pension expense. Included in the amount, the City
recognized $(36,430) as pension expense (and grant revenue) for its proportionate share of the State
of Minnesota's contribution of $16 million to the General Employees Fund.
74
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
At December 31, 2025, the City reported its proportionate share of the General Employees Plan's
deferred outflows of resources and deferred inflows of resources, related to pensions from the
following sources:
Differences between expected and actual economic experience 943,567$ -$
Changes in actuarial assumptions 237,216 2,327,485
Net difference between projected and actual investment
earnings - 3,977,775
Changes in proportion 331,672 344,264
Contributions paid to PERA subsequent to the measurement
date 1,005,684 -
Total 2,518,139$ 6,649,524$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
75
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
General Employees Fund Pension Costs (Continued)
The $1,005,684 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows
and deferred inflows of resources related to pensions will be recognized in pension expense as
follows:
Pension
Year Ending Expense
December 31,Amount
2026 (1,050,138)$
2027 (2,038,944)
2028 (1,348,159)
2029 (699,828)
Total (5,137,069)$
Police and Fire Fund Pension Costs
At December 31, 2025, the City reported a liability of $10,188,251 for its proportionate share of the
Police and Fire Fund's net pension liability. The net pension liability was measured as of
June 30, 2025, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of that date. The City's proportionate share of the net
pension liability was based on the City's contributions received by PERA during the measurement
period for employer payroll paid dates from July 1, 2024, through June 30, 2025, relative to the total
employer contributions received from all of PERA's participating employers. The City's proportionate
share was 0.8696% at the end of the measurement period and 0.8868% for the beginning of the
period.
76
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
The State of Minnesota contributed $18 million to the Police and Fire Fund in the plan fiscal year
ended June 30, 2025. The contribution consisted of $9 million in direct state aid that meets the
definition of a special funding situation and $9 million in supplemental state aid that does not meet
the definition of a special funding situation. The $9 million direct state aid was paid on
October 1, 2024. The direct state aid payment will increase by $17.7 million, which was paid on
October 1, 2025. Thereafter, by October 1 of each year, the State will pay $26.7 million to the Police
and Fire Fund until the fund is 110% funded for a minimum of three consecutive years (on an
actuarial value of assets basis). The $9 million in supplemental state aid will continue until the fund
and the State Patrol Plan (administered by the Minnesota State Retirement System) are 100% funded
for three consecutive years (on an actuarial value of assets basis). The State of Minnesota's
proportionate share of the net pension liability associated with the City totaled $353,175.
City's proportionate share of the net pension liability 10,188,251$
State of Minnesota's proportionate share of the net pension
liability associated with the City 353,175
Total 10,541,426$
For the year ended December 31, 2025, the City recognized pension expense of $2,731,548 for its
proportionate share of the Police and Fire Plan's pension expense. Included in this amount, the City
recognized $170,884 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.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in supplemental state aid because this
contribution was not considered to meet the definition of a special funding situation. The City
recognized $232,171 for the year ended December 31, 2025, as revenue and an offsetting reduction
of the net pension liability for its proportionate share of the State of Minnesota's on-behalf
contributions to the Police and Fire Fund.
77
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
At December 31, 2025, the City reported its proportionate share of the Police and Fire Plan's
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Differences between expected and actual economic experience 4,749,510$ -$
Changes in actuarial assumptions 7,765,539 12,919,761
Net difference between projected and actual investment
earnings - 4,598,308
Changes in proportion 190,216 193,059
Contributions paid to PERA subsequent to the measurement
date 1,230,574 -
Total 13,935,839$ 17,711,128$
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
78
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
D. Pension Costs (Continued)
Police and Fire Fund Pension Costs (Continued)
The $1,230,574 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2026. Other amounts reported as deferred outflows
and inflows of resources related to pensions will be recognized in pension expense as follows:
Pension
Year Ending Expense
December 31,Amount
2026 2,378,095$
2027 (2,285,598)
2028 (5,034,388)
2029 (292,823)
2030 228,851
Total (5,005,863)$
E. Long-Term Expected Return on Investment
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block
method in which best-estimate ranges of expected future rates of return are developed for each
major asset class. These ranges are combined to produce an expected long-term rate of return by
weighting the expected future rates of return by the target asset allocation percentages. The target
allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Asset Class
Domestic equity 33.5 %5.10 %
International equity 16.5 5.30
Fixed income 25.0 0.75
Private markets 25.0 5.90
Total 100.0 %
Target Allocation
Long-Term
Expected Real
Rate of Return
79
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Methods and Assumptions
The total pension liability for each of the cost-sharing defined benefit plans was determined by an
actuarial valuation as of June 30, 2025, using the entry-age normal actuarial cost method. The long-
term rate of return on pension plan investments used to determine the total liability is 7.0%. The
7.0% 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 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 1.5% 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 11.5%
after one year of service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth
assumptions range in annual increments from 10.75% after one year of service to 3.0% after 23 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. The assumption changes were adopted by the board and became effective with the
July 1, 2025, actuarial valuation.
The following changes in actuarial assumptions and plan provisions occurred in 2025:
General Employees Fund
Changes in Actuarial Assumptions
• The combined service annuity loading factors increased from 15% to 19% for vested
terminated members and from 3% to 44% for non-vested, terminated members. The assumed
post-retirement benefit increase changed from 1.25% to 1.5%.
Changes in Plan Provisions
• The post-retirement benefit increase formula changed to 100% of the Social Security annual
increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market
value of assets basis) is less than 85% for the last two consecutive annual valuations or is less
than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously,
the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%.
• The 1% additional employer contribution is eliminated when the plan reaches 98% funded status
(on an actuarial value of assets basis); this contribution was previously scheduled to stop when
the plan reached 100% funded status.
80
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
F. Actuarial Methods and Assumptions (Continued)
Police and Fire Fund
Changes in Actuarial Assumptions
• Assumed rates of salary increases were reduced slightly.
• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced
(full) retirements and an overall increase in reduced (early) retirements.
• Assumed rates of withdrawal were modified; the new rates will increase predicted
terminations, especially in the first few years of employment.
• Assumed rates of disabled retirement were significantly increased, especially for ages over
age 30.
• Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit
observed experience.
• Percent married assumption for female retirees lowered from 70% to 65%.
• Minor changes were made to form of payment assumptions for retirees.
• Minor changes were made to assumptions made with respect to missing participant data.
• The combined service annuity load changed from 33% to 13% for vested, terminated members
and from 2% to 38% for non-vested, terminated members.
Changes in Plan Provisions
• The period of time needed for benefit recipients to receive their first benefit increase was
reduced by one year (from 36 months to 24 months for a full increase).
• The January 1, 2026, benefit increase changed from 1% to 3%; subsequent January 1 increases
will be 1%.
• The threshold to end the $9 million annual state aid contribution changed from the earlier of
July 1, 2048, or 90% funded for both PERA Police and Fire and MSRS State Patrol for three
consecutive years to 100% funded for both PERA Police and Fire and MSRS State Patrol for
three consecutive years (on an actuarial value of assets basis).
• The threshold to end the additional $9 million annual state aid contribution changed from the
earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110%
funded for a minimum of three consecutive years (on an actuarial value of assets basis).
• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning
October 1, 2025, through June 30, 2048.
• Joint and survivor actuarial equivalent factors were updated to reflect changes in
assumptions.
G. Discount Rate
The discount rate used to measure the total pension liability in 2025 was 7.0%. The projection of
cash flows used to determine the discount rate assumed that contributions from Plan members and
employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary
net positions of the General Employees and Police and Fire Plans were projected to be available to
make all projected future benefit payments of current Plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
81
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees' Retirement Association (Continued)
H. Pension Liability Sensitivity
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as
what the City's proportionate share of the net pension liability would be if it were calculated using a
discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in Current 1% Increase in
Discount Discount Discount
Rate (6.0%)Rate (7.0%)Rate (8.0%)
City's proportionate share of
the General Employees Fund
net pension liability 23,913,067$ 9,848,457$ (1,566,543)$
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 26,695,379$ 10,188,251$ (3,366,705)$
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in a separately
issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained on the Internet at www.mnpera.org.
Public Employees Defined Contribution Plan (Defined Contribution Plan)
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.
82
City of Edina
Notes to Basic Financial Statements
NOTE 8 – PENSION PLANS (CONTINUED)
Public Employees Defined Contribution Plan (Defined Contribution Plan)
The defined contribution plan consists of individual accounts paying a lump-sum benefit. Plan
benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses; therefore, there is no future liability to the City. Minnesota Statutes
Chapter 353D and 356, specifies plan provisions, including the employee and employer contribution
rates for those qualified personnel who elect to participate. An eligible elected official who decides
to participate contributes 5% of 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 percent of salary. Employer contributions for volunteer personnel
may be a unit value for each call or period of alert duty.
Employees who are paid for their services may elect to make member contributions in an amount not
to exceed the employer share. Employer and employee contributions are combined and used to
purchase shares in one or more of the seven accounts of the Minnesota Supplemental Investment
Fund. For administering the plan, PERA receives 2% of employer contributions and twenty-five
hundredths of 1% (.25%) of the assets in each member's account annually.
Pension expense for the year is equal to the contributions made. Total contributions made by the
City during fiscal year 2025 were:
Contribution Amount Percentage of Covered Payroll
Employee Employer Employee Employer Required Rate
3,712$ 3,712$ 5%5%5%
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 60 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.
83
City of Edina
Notes to Basic Financial Statements
NOTE 9 – MULTIEMPLOYER DEFINED BENEFIT PENSION PLAN (CONTINUED)
The City's contributions to the plan are pursuant to a collective bargaining agreement with the IUOE
which will expire December 31, 2026. 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, 2025, were $139,333. 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.
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 $189,374. Total OPEB liability will be paid by the general fund and enterprise funds.
84
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
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 measured as of December 31, 2024,
using the following actuarial assumptions, applied to all periods included in the measurement, unless
otherwise specified:
Discount Rate 4.08%
Salary increases including inflation Based on the PERA Plan in which the
employee is a participant.
Healthcare cost trend increases 7.45% 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
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 4.08%, 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 3.77%.
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.
85
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
E. Actuarial Assumptions (Continued)
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, 2024.
Changes in the total OPEB liability are as follows:
Total
OPEB
Liability
Balances at January 1, 2025 4,569,654$
Changes for the year
Service cost 560,769
Interest 189,849
Differences between expected and actual
economic experience 20,345
Changes of assumptions (135,238)
Benefit payments (189,374)
Net changes 446,351
Balances at December 31, 2025 5,016,005$
Assumption changes since the prior measurement date include the following:
• The discount rate was changed from 3.77% to 4.08%
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 calculated 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
(3.08%)(4.08%)(5.08%)
5,465,648$ 5,016,005$ 4,604,512$
Total OPEB Liability/(Asset)
86
City of Edina
Notes to Basic Financial Statements
NOTE 10 – POST EMPLOYMENT HEALTH CARE PLAN (CONTINUED)
G. OPEB Liability Sensitivity (Continued)
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower and 1%
higher than the current healthcare cost trend rates.
1% Decrease in Current 1% Increase in
Trend Rate Trend Rate Trend Rate
(6.5% Decreasing to
3.0%)
(7.5% Decreasing to
4.0%)
(8.5% Decreasing to
5.0%)
4,343,385$ 5,016,005$ 5,820,615$
Total OPEB Liability/(Asset)
H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended December 31, 2025, the City recognized OPEB expense of $690,191. At
December 31, 2025, the City reported deferred outflows of resources and deferred inflows of
resources as shown below.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual economic experience 1,378,845$ 759,957$
Changes in actuarial assumptions 527,360 983,016
Contributions made subsequent to the measurement date 120,423 -
Total 2,026,628$ 1,742,973$
87
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 (Continued)
A total of $120,423 reported as deferred outflows of resources related to OPEB resulting from city
contributions subsequent to the measurement date will be recognized as a reduction of the total
OPEB liability in the year ending December 31, 2026. Other amounts reported as deferred outflows
and inflows of resources related to the plan will be recognized in pension expense as follows:
OPEB
Expense
(60,425)$
(64,896)
(60,432)
(37,402)
119,357
267,030
Total 163,232$
2027
Year Ending
December 31,
2028
2029
2030
Thereafter
2026
88
City of Edina
Notes to Basic Financial Statements
NOTE 11 – FUND BALANCES
A. Classifications
At December 31, 2025, 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 168,043$ -$ -$ -$ 10,832$ 178,875$
Restricted
Park Dedication 48,430 - - - - 48,430
Tax Increments - 31,490,226 - - - 31,490,226
Affordable Housing - 4,090,132 - - - 4,090,132
Debt Service - - 7,640,287 - - 7,640,287
Capital Projects - - - 59,846,146 - 59,846,146
Pedestrian and Cyclist
Improvements - - - - - -
Forfeitures - - - - 1,120,734 1,120,734
Donations - - - - 133,030 133,030
Conservation and
Sustainability
Initiatives - - - - 1,176,152 1,176,152
Public Safety - - - - 1,838,751 1,838,751
Opioid Epidemic Response - - - - 272,642 272,642
Total restricted 48,430 35,580,358 7,640,287 59,846,146 4,541,309 107,656,530
Assigned
Compensated Absences 3,102,051 - - - - 3,102,051
Budget Stabilization 1,327,722 - - - - 1,327,722
Art and Culture 65,147 - - - - 65,147
Special Projects - - - 6,824,397 - 6,824,397
Equipment - - - 4,012,650 - 4,012,650
Total assigned 4,494,920 - - 10,837,047 - 15,331,967
Unassigned 31,253,577 - - - (401,623) 30,851,954
Total fund balances 35,964,970$ 35,580,358$ 7,640,287$ 70,683,193$ 4,150,518$ 154,019,326$
Major Funds
89
City of Edina
Notes to Basic Financial Statements
NOTE 11 – FUND BALANCES (CONTINUED)
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, 2025, the City has $31,253,577 of unassigned fund balance in the general fund, or
58.95% of 2026 budgeted property tax revenue. This amount is $6,337,487 above the top of the goal
identified in the policy.
NOTE 12 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
A. Interfund Receivables and Payables
There was an interfund receivable due to the Construction Fund payable from the Pedestrian and
Cyclist Safety nonmajor governmental fund for the amount of $373,866 to cover a cash deficit at
year end. There was an interfund receivable due to the Aquatic Center Fund payable from the
Edinborough Park nonmajor proprietary fund for the amount of $394,618 to cover a cash deficit at
year end.
B. Interfund Transfers
Transfers Out General Debt Service Liquor
Aquatic
Center Golf Course Arena
Nonmajor
Enterprise
Internal
Service
Funds Total
General -$ -$ -$ -$ -$ 350,000$ -$ -$ 350,000$
Housing and Redevelopment
Authority - 685,782 - - - - - - 685,782
Construction Fund - 2,948,862 - - - - - - 2,948,862
Utilities Fund 225,664 - 4,974 22,726 68,216 181,362 90,877 22,648 616,467
Liquor Fund - - - - - - 1,000,000 - 1,000,000
Total 225,664$ 3,634,644$ 4,974$ 22,726$ 68,216$ 531,362$ 1,090,877$ 22,648$ 5,601,111$
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 and $700,000 to the Art Center Fund and Centennial
Lakes Fund, respectively.
2. General Fund transferred $350,000 to the Braemer Arena Fund for operations, as planned in
the 2025 budget.
3. The Housing and Redevelopment Authority Fund and Construction Fund transferred $685,782
and $2,948,862 of PIR assessment revenue to the debt service fund for related debt
payments, respectively.
4. The Utilities Fund transferred a total of $616,467 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.
90
City of Edina
Notes to Basic Financial Statements
NOTE 13 – TAX INCREMENT DISTRICTS (CONTINUED)
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.
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 values as of December 31, 2025:
Pentagon 50th and 44th and W. 76th Amundson 70th and 72nd and
Park Grandview 2 66 West France 2 France 2 Street Ave West 70th Franch France
TIF #1211 TIF #1212 TIF #1214 TIF #1215 TIF #1216 TIF #1217 TIF #1219 TIF #1220 TIF #1221 TIF #1223 Total
Original Tax Capacity 691,608$ 39,890$ 15,315$ 57,986$ 29,735$ 16,364$ 6,637$ 69,270$ 323,484$ 217,006$ 1,467,295$
Current Tax Capacity 2,118,336 866,598 31,456 992,500 300,325 72,599 62,206 79,375 323,484 199,250 5,046,129
Tax Capacity
Change 1,426,728 826,708 16,141 934,514 270,590 56,235 55,569 10,105 - - 3,578,834
Retained CapturedTax Capacity 1,426,728$ 826,708$ 16,141$ 934,514$ 270,590$ 56,235$ 55,569$ 10,105$ -$ -$ 3,578,834$
91
City of Edina
Notes to Basic Financial Statements
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 2025.
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, 2025.
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.
92
City of Edina
Notes to Basic 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.
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, 2025, the City paid a total of
$165,048 in memberships fees to the PSTF, equal to 18.3% of membership fees collected for the
year.
NOTE 17 – PRIOR PERIOD RESTATEMENT
For the year ended December 31, 2025, an error correction was required to adjust the beginning
fund balance in the Housing and Redevelopment Authority Fund in the amount of $2,786,708 related
to the HIA loan receivable.
Housing and
Redevelopment
Authority
Governmental
Activities
12/31/2024, as previously stated 34,583,322$ 235,646,627$
Error correction (2,786,708) (2,786,708)
12/31/2024, as adjusted or restated 31,796,614$ 232,859,919$
Reporting Units Affected by
Adjustments to and Restatements of
Beginning Balances
Government-
Wide
93
REQUIRED SUPPLEMENTARY INFORMATION
See notes to required supplementary information. 94
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2025
Original Final Actual Amounts
Revenues
Taxes
Property taxes 47,543,215$ 47,543,215$ 46,582,974$ (960,241)$
Franchise taxes 1,100,000 1,100,000 687,067 (412,933)
Lodging tax 20,000 20,000 31,552 11,552
Total taxes 48,663,215 48,663,215 47,301,593 (1,361,622)
Licenses and permits 5,821,958 5,821,958 6,787,920 965,962
Intergovernmental
Federal 425,830 425,830 756,222 330,392
State
Municipal state aid 195,000 195,000 195,000 -
Health programs 230,630 230,630 582,365 351,735
Fire aid 472,500 472,500 682,728 210,228
Police aid 930,000 930,000 920,594 (9,406)
Other grants and aids 200,000 200,000 183,580 (16,420)
Total intergovernmental revenue 2,453,960 2,453,960 3,320,489 866,529
Charges for services
Administration 180,200 180,200 785 (179,415)
Communications and technology 50,220 50,220 63,403 13,183
Finance 1,567,836 1,567,836 1,567,836 -
Public works - - 726 726
Engineering 61,800 61,800 256,611 194,811
Police 948,800 948,800 1,498,706 549,906
Fire 2,618,700 2,618,700 3,159,200 540,500
Parks and recreation 810,000 810,000 862,177 52,177
Community development 75,000 75,000 154,042 79,042
Total charges for services 6,312,556 6,312,556 7,563,486 1,250,930
Fine and forfeitures 350,000 350,000 773,992 423,992
Miscellaneous
Investment income 425,000 425,000 662,952 237,952
Rental of property 463,182 463,182 615,976 152,794
Other 19,000 19,000 226,248 207,248
Total miscellaneous 907,182 907,182 1,505,176 597,994
Total revenues 64,508,871 64,508,871 67,252,656 2,743,785
Variance with
Final Budget
Budgeted Amounts
See notes to required supplementary information. 95
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2025
Original Final Actual Amounts
Expenditures
Current
General government
Administration
Personal services 1,648,488$ 1,648,488$ 1,624,575$ (23,913)$
Contractual services 1,221,110 1,221,110 863,305 (357,805)
Commodities 86,500 86,500 32,103 (54,397)
Internal services 246,510 246,510 246,510 -
Total administration 3,202,608 3,202,608 2,766,493 (436,115)
Communications
Personal services 1,117,645 1,117,645 1,204,488 86,843
Contractual services 439,718 439,718 423,999 (15,719)
Commodities 34,500 34,500 11,342 (23,158)
Internal services 193,516 193,516 193,516 -
Total communications 1,785,379 1,785,379 1,833,345 47,966
Human resouces
Personal services 1,557,469 1,557,469 1,283,190 (274,279)
Contractual services 209,760 209,760 391,284 181,524
Commodities 36,600 36,600 26,316 (10,284)
Internal services 79,832 79,832 79,832 -
Total human resources 1,883,661 1,883,661 1,780,622 (103,039)
Finance
Personal services 1,134,413 1,134,413 1,077,912 (56,501)
Contractual services 346,070 346,070 533,383 187,313
Commodities 16,500 16,500 7,749 (8,751)
Internal services (130,426) (130,426) (130,426) -
Total finance 1,366,557 1,366,557 1,488,618 122,061
Community development
Personal services 2,077,387 2,077,387 2,009,348 (68,039)
Contractual services 346,000 346,000 250,345 (95,655)
Commodities 12,500 12,500 591 (11,909)
Internal services 213,710 213,710 213,710 -
Total community development 2,649,597 2,649,597 2,473,994 (175,603)
Total general government 10,887,802 10,887,802 10,343,072 (544,730)
Public safety
Police
Personal services 15,300,341 15,300,341 14,419,215 (881,126)
Contractual services 1,367,430 1,367,430 1,323,910 (43,520)
Commodities 165,500 165,500 118,936 (46,564)
Internal services 1,841,433 1,841,433 1,841,433 -
Total police 18,674,704 18,674,704 17,703,494 (971,210)
Fire
Personal services 11,377,875 11,377,875 11,006,345 (371,530)
Contractual services 1,097,480 1,097,480 1,063,265 (34,215)
Commodities 416,618 416,618 235,866 (180,752)
Internal services 836,284 836,284 836,284 -
Total fire 13,728,257 13,728,257 13,141,760 (586,497)
Budgeted Amounts
Variance with
Final Budget
See notes to required supplementary information. 96
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2025
Original Final Actual Amounts
Expenditures (Continued)
Current (continued)
Public safety (continued)
Public health
Personal services 757,412$ 757,412$ 770,004$ 12,592$
Contractual services 622,992 622,992 1,073,599 450,607
Commodities 10,300 10,300 12,038 1,738
Internal services 92,570 92,570 92,570 -
Total public health 1,483,274 1,483,274 1,948,211 464,937
Total public safety 33,886,235 33,886,235 32,793,465 (1,092,770)
Public works
Public works
Personal services 3,307,972 3,307,972 3,142,094 (165,878)
Contractual services 1,242,006 1,242,006 791,161 (450,845)
Commodities 1,210,000 1,210,000 922,123 (287,877)
Internal services 1,467,322 1,467,322 1,467,322 -
Total public works 7,227,300 7,227,300 6,322,700 (904,600)
Engineering
Personal services 2,951,330 2,951,330 2,774,968 (176,362)
Contractual services 1,542,140 1,542,140 1,217,964 (324,176)
Commodities 95,700 95,700 48,389 (47,311)
Internal services 482,788 482,788 482,788 -
Total engineering 5,071,958 5,071,958 4,524,109 (547,849)
Total public works 12,299,258 12,299,258 10,846,809 (1,452,449)
Parks and recreation
Parks and recreation
Personal services 5,033,727 5,033,727 4,799,792 (233,935)
Contractual services 2,014,430 2,014,430 1,908,465 (105,965)
Commodities 454,300 454,300 471,154 16,854
Internal services 740,119 740,119 740,119 -
Total parks 8,242,576 8,242,576 7,919,530 (323,046)
Capital outlay
General government - - 203,057 203,057
Debt service
Principal - - 29,750 29,750
Interest and fiscal changes - - 102 102
Total debt service - - 29,852 29,852
Total expenditures 65,315,871 65,315,871 62,135,785 (3,180,086)
Budgeted Amounts
Variance with
Final Budget
See notes to required supplementary information. 97
City of Edina
Statement of Revenues, Expenditures, and
Changes in Fund Balances -
Budget and Actual - General Fund
Year Ended December 31, 2025
Original Final Actual Amounts
Expenditures (Continued)
Excess of revenues over
(under) expenditures (807,000)$ (807,000)$ 5,116,871$ 5,923,871$
Other Financing Sources
Proceeds from sale of capital asset - - 34,524 34,524
Transfers in 157,000 157,000 225,664 68,664
Transfers out (350,000) (350,000) (350,000) -
Total other financing
sources (193,000) (193,000) (89,812) 103,188
Net change in fund balances (1,000,000)$ (1,000,000)$ 5,027,059 6,027,059$
Fund Balance
Beginning of year 30,937,911
End of year 35,964,970$
Budgeted Amounts
Variance with
Final Budget
See notes to required supplementary information. 98
Original Final Actual Amounts
Revenues
Property taxes 259,300$ 259,300$ 255,379$ (3,921)$
Tax increments 2,415,000 2,415,000 4,817,402 2,402,402
Special assessments - - 278,325 278,325
Intergovernmental - - 1,037,882 1,037,882
Charges for services 800,000 800,000 1,705,809 905,809
Investment income 304,000 304,000 1,074,395 770,395
Total revenues 3,778,300 3,778,300 9,169,192 5,390,892
Expenditures
Current
Personal Services 182,088 182,088 182,345 257
Contractual Services 8,069,640 8,069,640 3,381,448 (4,688,192)
Commodities 300 300 1,235 935
Capital outlay
General government 1,200,000 1,700,000 1,134,638 (565,362)
Total expenditures 9,452,028 9,952,028 4,699,666 (5,252,362)
u
nNet change in fund balances (5,673,728) (6,173,728) 4,469,526 10,643,254
Other Financing Sources (Uses)
Transfers out - - (685,782) (685,782)
Net change in fund balances (5,673,728)$ (6,173,728)$ 3,783,744 9,957,472$
Fund Balance
Beginning of year, as previously stated 34,583,322
Prior period restatement (see note 17)(2,786,708)
Beginning of year, restated 31,796,614
End of year 35,580,358$
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, 2025
See notes to required supplementary information. 99
City's Covered-
employee
Payroll
2025 0.2971%9,849,457$ 237,503$ 10,086,960$ 26,907,453$ 36.60%90.78%
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%
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
2025 0.8696%10,188,251$ 353,175$ 10,541,426$ 13,196,994$ 77.20%91.78%
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%
City of Edina
Schedule of City's Proportionate Share
of Net Pension Liability
General Employees Retirement Fund
Last Ten Years
Last Ten Years
For 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
See notes to required supplementary information. 100
2025 2,011,368$ 2,011,368$ -$ 26,818,240$ 7.50%
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%
2025 2,461,147$ 2,461,147$ -$ 13,904,785$ 17.70%
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%
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
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
See notes to required supplementary information. 101
December 31,December 31,December 31,December 31,December 31,December 31,December 31,December 31,
2017 2018 2019 2020 2021 2022 2023 2024
Total OPEB Liability
Service cost 270,435$ 296,634$ 192,093$ 239,792$ 280,452$ 407,276$ 313,990$ 560,769$
Interest 127,096 128,559 154,222 65,302 58,062 77,753 141,664 189,849
Differences between expected
and actual experience - - (1,909,627) 9,714 1,503,227 (7,355) 559,438 20,345
Changes of assumptions 87,259 (178,824) 212,364 105,246 (790,776) (483,539) 465,916 (135,238)
Benefit payments (133,679) (138,732) (77,801) (90,566) (119,930) (164,310) (190,465) (189,374)
Net change in total OPEB liability 351,111 107,637 (1,428,749) 329,488 931,035 (170,175) 1,290,543 446,351
Beginning of year 3,158,764 3,509,875 3,617,512 2,188,763 2,518,251 3,449,286 3,279,111 4,569,654
End of year 3,509,875$ 3,617,512$ 2,188,763$ 2,518,251$ 3,449,286$ 3,279,111$ 4,569,654$ 5,016,005$
23,900,000$ 24,800,000$ 25,800,000$ 26,700,000$ #30,100,000$ 36,100,000$ 39,100,000$ 42,400,000$
14.7%14.6%8.5%9.4%11.5%9.1%11.7%11.8%
and Related Ratios
Note: Schedule is intended to show ten year trend. Additional years will be reported as they become
available. No assets are accululated in a trust.
Covered-employee payroll
Total OPEB liability as a percentage of
covered-employee payroll
City of Edina
Schedule of Changes in Total OPEB Liability
102
City of Edina
Notes to Required Supplementary Information
December 31, 2025
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
Communications 1,785,379$ 1,833,345$ 47,966$
Finance 1,366,557 1,488,618 122,061
Public Safety
Public Health 1,483,274 1,948,211 464,937
Capital Outlay - 203,057 203,057
Debt Service - 29,852 29,852
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.
103 103
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB
General Employees Fund
2025 Changes
Changes in Actuarial Assumptions
• The combined service annuity loading factors increased from 15% to 19% for vested,
terminated members and from 3% to 44% for non-vested, terminated members.
• The assumed post-retirement benefit increase changed from 1.25% to 1.5%.
Changes in Plan Provisions
• The post-retirement benefit increase formula changed to 100% of the Social Security annual
increase, between 1% and 1.75%, beginning January 1, 2026. If the funded ratio (on a market
value of assets basis) is less than 85% for the last two consecutive annual valuations or is less
than 80% in the most recent actuarial valuation, the maximum is reduced to 1.5%. Previously,
the benefit increase was 50% of the Social Security annual increase, between 1% and 1.5%.
• The 1% additional employer contribution is eliminated when the plan reaches 98% funded
status (on an actuarial value of assets basis); this contribution was previously scheduled to
stop when the plan reached 100% funded status.
2024 Changes
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.
104 104
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
General Employees Fund (Continued)
2022 Changes
Changes in Actuarial Assumptions
• The mortality improvement scale was changed from scale MP-2020 to scale MP-2021.
Changes in Plan Provisions
• There have been no changes 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.
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.
105 105
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
General Employees Fund (Continued)
2019 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
• The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State's special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes
Changes in Actuarial Assumptions
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.0% per year through 2044 and 2.5% per
year thereafter to 1.25% per year.
Changes in Plan Provisions
• The augmentation adjustment in early retirement factors is eliminated over a five-year period
starting July 1, 2019, resulting in actuarial equivalence after June 30, 2024.
• Interest credited on member contributions decreased from 4.00% 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.
106 106
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
General Employees Fund (Continued)
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.
107 107
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund
2025 Changes
Changes in Actuarial Assumptions
• Assumed rates of salary increases were reduced slightly.
• Assumed rates of retirement were adjusted, resulting in an overall increase in unreduced
(full) retirements and an overall increase in reduced (early) retirements.
• Assumed rates of withdrawal were modified; the new rates will increase predicted
terminations, especially in the first few years of employment.
• Assumed rates of disabled retirement were significantly increased, especially for ages over
age 30.
• Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit
observed experience.
• Percent married assumption for female retirees lowered from 70% to 65%.
• Minor changes were made to form of payment assumptions for retirees.
• Minor changes were made to assumptions made with respect to missing participant data.
• The combined service annuity load changed from 33% to 13% for vested, terminated members
and from 2% to 38% for non-vested, terminated members.
Changes in Plan Provisions
• The period of time needed for benefit recipients to receive their first benefit increase was
reduced by one year (from 36 months to 24 months for a full increase).
• The January 1, 2026, benefit increase changed from 1% to 3%; subsequent January 1 increases
will be 1%.
• The threshold to end the $9 million annual state aid contribution changed from the earlier of
July 1, 2048, or 90% funded for both PERA Police & Fire and MSRS State Patrol for three
consecutive years to 100% funded for both PERA Police & Fire and MSRS State Patrol for three
consecutive years (on an actuarial value of assets basis).
• The threshold to end the additional $9 million annual state aid contribution changed from the
earlier of July 1, 2048 or 100% funded for a minimum of three consecutive years to 110%
funded for a minimum of three consecutive years (on an actuarial value of assets basis).
• An additional $17.7 million in direct state aid will be paid annually each October 1 beginning
October 1, 2025, through June 30, 2048.
• Joint and survivor actuarial equivalent factors were updated to reflect changes in
assumptions.
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).
108 108
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund (Continued)
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.
• 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.
109 109
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund (Continued)
2021 Changes (Continued)
Changes in Actuarial Assumptions (Continued)
• 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 % 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.
• 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.
110 110
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Police and Fire Fund (Continued)
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%.
• 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.
111 111
City of Edina
Notes to Required Supplementary Information
December 31, 2025
NOTE 3 – PENSIONS AND OPEB (CONTINUED)
Post Employment Health Care Plan
2025 Changes
Changes in Actuarial Assumptions
• The discount rate changed from 3.77% to 4.08%.
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%.
112
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113
SUPPLEMENTARY INFORMATION
114
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115
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
$2,344,327 on December 26, 2023.
116
Community
Development
Block Grant Police
Braemar
Memorial
Pedestrian and
Cyclist Safety
Conservation
and
Sustainability
Opioid
Settlement Public Safety
Assets
Cash and investments -$ 1,082,485$ 132,156$ -$ 919,888$ 277,667$ 1,832,225$ 4,244,421$
Accrued interest - - 874 374 8,239 1,748 14,106 25,341
Accounts receivable - 551 - 382,886 297,764 - - 681,201
Due from other governments - 38,662 - - - 142,155 - 180,817
Prepaid expenses - 8,372 - - 2,460 - - 10,832
Total assets -$ 1,130,070$ 133,030$ 383,260$ 1,228,351$ 421,570$ 1,846,331$ 5,142,612$
Liabilities
Accounts payable -$ 964$ -$ 378,240$ 21,670$ -$ 7,580$ 408,454$
Contracts payable - - - 24,165 12,718 - - 36,883
Due to other funds - - - 373,866 - - - 373,866
Due to other governments - - - - - 6,683 - 6,683
Salaries and benefits payable - - - 8,612 15,351 - - 23,963
Unearned revenue - - - - - 90 - 90
Total liabilities - 964 - 784,883 49,739 6,773 7,580 849,939
Deferred Inflows of Resources
Unavailable revenue - - - - - 142,155 - 142,155
Fund Balances
Nonspendable - 8,372 - - 2,460 - - 10,832
Restricted - 1,120,734 133,030 - 1,176,152 272,642 1,838,751 4,541,309
Unassigned - - - (401,623) - - - (401,623)
Total fund balances - 1,129,106 133,030 (401,623) 1,178,612 272,642 1,838,751 4,150,518
Total liabilities, deferred inflow of
resources, and fund balances -$ 1,130,070$ 133,030$ 383,260$ 1,228,351$ 279,415$ 1,846,331$ 5,142,612$
Total
Nonmajor
Governmental
Funds
City of Edina
Combining Balance Sheet -
Nonmajor Governmental Funds
December 31, 2025
Special Revenue
117
Community
Development
Block Grant Police
Braemar
Memorial
Pedestrian and
Cyclist Safety
Conservation
and
Sustainability
Opioid
Settlement Public Safety
Revenues
Franchise Taxes -$ -$ -$ 1,566,384$ 1,192,483$ -$ -$ 2,758,867$
Intergovernmental - 10,108 - 143,325 113,679 43,721 - 310,833
Investment income - 592 14,588 12,295 73,234 12,874 118,989 232,572
Other revenues 95,754 219,914 4,505 - 34,339 - - 354,512
Total revenues 95,754 230,614 19,093 1,722,004 1,413,735 56,595 118,989 3,656,784
Expenditures
Current
Public safety - 98,434 - - - 21,005 83,402 202,841
Public works - - - 306,964 575,767 - - 882,731
Parks - - 6,225 - - - - 6,225
Capital outlay
Public safety - - - - - - 490,284 490,284
Public works - - - 2,076,877 693,374 - - 2,770,251 -
Total expenditures - 98,434 6,225 2,383,841 1,269,141 21,005 573,686 4,352,332
Net change in fund balances 95,754 132,180 12,868 (661,837) 144,594 35,590 (454,697) (695,548)
Fund Balances
Beginning of year (95,754) 996,926 120,162 260,214 1,034,018 237,052 2,293,448 4,846,066
End of year -$ 1,129,106$ 133,030$ (401,623)$ 1,178,612$ 272,642$ 1,838,751$ 4,150,518$
City of Edina
Total
Nonmajor
Governmental
Funds
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Nonmajor Governmental Funds
Year Ended December 31, 2025
Special Revenue
118
Original Final Actual Amounts
Revenues
Intergovernmental 170,000$ 170,000$ -$ (170,000)$
Miscellaneous revenues - - 95,754 95,754
Total revenues 170,000 170,000 95,754 (74,246)
Expenditures
Current
General government 170,000 170,000 - (170,000)
u
nNet change in fund balances -$ -$ 95,754 95,754$
Fund Balance
Beginning of year (95,754)
End of year -$
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, 2025
119
Original Final Actual Amounts
Revenues
Intergovernmental -$ -$ 10,108$ 10,108$
Investment income 3,000 3,000 592 (2,408)
Miscellaneous revenues 225,000 225,000 219,914 (5,086)
Total revenues 228,000 228,000 230,614 2,614
Expenditures
Current
Public safety 147,500 147,500 98,434 (49,066)
u
nNet change in fund balances 80,500$ 80,500$ 132,180 51,680$
Fund Balance
Beginning of year 996,926
End of year 1,129,106$
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, 2025
120
Original Final Actual Amounts
Revenues
Investment income 1,000$ 1,000$ 14,588$ 13,588$
Miscellaneous revenues 2,500 2,500 4,505 2,005
Total revenues 3,500 3,500 19,093 15,593
Expenditures
Current
Park and recreation 1,000 1,000 6,225 5,225
u
nNet change in fund balances 2,500$ 2,500$ 12,868 10,368$
Fund Balance
Beginning of year 120,162
End of year 133,030$
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, 2025
121
Original Final Actual Amounts
Revenues
Franchise taxes 1,230,000$ 1,230,000$ 1,566,384$ 336,384$
Intergovernmental - - 143,325 143,325
Investment income 22,000 22,000 12,295 (9,705)
Total revenues 1,252,000 1,252,000 1,722,004 470,004
Expenditures
Current
Public works 252,023 252,023 306,964 54,941
Capital outlay
Public works 1,594,100 1,594,100 2,076,877 482,777
Total expenditures 1,846,123 1,846,123 2,383,841 537,718
u
nNet change in fund balances (594,123)$ (594,123)$ (661,837) (67,714)$
Fund Balance
Beginning of year 260,214
End of year (401,623)$
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, 2025
122
Original Final Actual Amounts
Revenues
Franchise taxes 980,000$ 980,000$ 1,192,483$ 212,483$
Intergovernmental - - 113,679 113,679
Investment income 46,000 46,000 73,234 27,234
Miscellaneous revenues 20,000 20,000 34,339 14,339
Total revenues 1,046,000 1,046,000 1,413,735 367,735
Expenditures
Current
Public works 624,466 624,466 575,767 (48,699)
Capital outlay
Public works 1,625,000 1,625,000 693,374 (931,626)
Total expenditures 2,249,466 2,249,466 1,269,141 (980,325)
u
nNet change in fund balances (1,203,466)$ (1,203,466)$ 144,594 1,348,060$
Fund Balance
Beginning of year 1,034,018
End of year 1,178,612$
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, 2025
123
Original Final Actual Amounts
Revenues
Intergovernmental 34,622$ 34,622$ 43,721$ 9,099$
Investment income 2,000 2,000 12,874 10,874
Total revenues 36,622 36,622 56,595 19,973
Expenditures
Current
Public safety 34,622 34,622 21,005 (13,617) E
x u
nNet change in fund balances 2,000$ 2,000$ 35,590 33,590$
Fund Balance
Beginning of year 237,052
End of year 272,642$
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, 2025
124
Original Final Actual Amounts
Revenues
Investment income -$ -$ 118,989$ 118,989$
Expenditures
Current
Public safety - 70,865 83,402 12,537
Capital outlay
Public safety - 845,200 490,284 (354,916)
Total expenditures - 916,065 573,686 (342,379)
u
nNet change in fund balances -$ (916,065)$ (454,697) 461,368$
Fund Balance
Beginning of year 2,293,448
End of year 1,838,751$
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, 2025
125
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.
126
Original Final Actual Amounts
Revenues
Property taxes 3,481,100$ 5,377,639$ 5,273,981$ (103,658)$
Special assessments - - 187,805 187,805
Intergovernmental - - 996,250 996,250
Investment income - - 79,377 79,377
Total revenues 3,481,100 5,377,639 6,537,413 1,159,774
Expenditures
Debt service
Principal 22,705,000 22,705,000 22,705,000 -
Interest and other charges 2,307,344 2,307,344 4,328,273 2,020,929
Total expenditures 25,012,344 25,012,344 27,033,273 2,020,929
Excess of revenues over u
n (under) expenditures (21,531,244) (19,634,705) (20,495,860) (861,155)
Other Financing Sources (Uses)
Bonds issued - - 147,185 147,185
Transfers in 2,948,862 2,948,862 3,634,644 685,782
Total other financing
sources (uses)2,948,862 2,948,862 3,781,829 832,967
Net change in fund balances (18,582,382)$ (16,685,843)$ (16,714,031) (28,188)$
Fund Balance
Beginning of year 24,354,318
End of year 7,640,287$
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, 2025
127
Original Final Actual Amounts
Revenues
Property taxes 5,830,000$ 5,830,000$ 5,710,061$ (119,939)$
Special assessments 3,723,637 3,723,637 4,388,655 665,018
General sales tax 5,436,000 5,436,000 7,427,094 1,991,094
Franchise taxes 80,000 80,000 206,120 126,120
Licenses and permits - - 55,514 55,514
Intergovernmental - - 19,698,830 19,698,830
Charges for services - - 291,174 291,174
Investment income 382,000 382,000 4,338,706 3,956,706
Miscellaneous revenues - - 128,976 128,976
Total revenues 15,451,637 15,451,637 42,245,130 26,793,493
Expenditures
Current
General government - - 70,847 70,847
Public safety - - 786,182 786,182
Public works 144,413 144,413 1,444,326 1,299,913
Park and recreation - - 241,115 241,115
Capital outlay
General government 5,477,404 5,477,404 17,689,263 12,211,859
Public safety 845,300 845,300 14,645,983 13,800,683
Public works 11,449,776 11,449,776 7,212,749 (4,237,027)
Park and recreation 1,124,300 1,124,300 5,340,300 4,216,000
Total expenditures 19,041,193 19,041,193 47,430,765 28,389,572
Excess of revenues over u
n (under) expenditures (3,589,556) (3,589,556) (5,185,635) (1,596,079)
Other Financing Sources (Uses)
Proceeds from sale of capital asset - - 228,098 228,098
Bonds issued - - 21,212,815 21,212,815
Premium on bonds issued - - 977,298 977,298
Transfers out (2,948,861) (2,948,861) (2,948,862) (1)
Total other financing
sources (uses)(2,948,861) (2,948,861) 19,469,349 22,418,210
Net change in fund balances (6,538,417)$ (6,538,417)$ 14,283,714 20,822,131$
Fund Balance
Beginning of year 56,399,479
End of year 70,683,193$
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, 2025
128
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129
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.
130
Art Center
Edinborough
Park
Centennial
Lakes Braemar Field
Total
Nonmajor
Proprietary
Funds
Assets
Current assets
Cash and investments 206,592$ -$ 1,016,019$ 1,540,116$ 2,762,727$
Interest receivable 250 - 2,871 11,235 14,356
Accounts receivable 4,888 206,155 58,802 4,277 274,122
Total current assets 211,730 206,155 1,077,692 1,555,628 3,051,205
Noncurrent assets
Capital assets
Net capital assets 16,044 1,128,044 1,588,601 3,967,066 6,699,755
Total assets 227,774 1,334,199 2,666,293 5,522,694 9,750,960
Deferred Outflows of Resources
OPEB deferred outflows 7,904 18,645 13,376 - 39,925
Pension deferred outflows 13,904 73,278 46,616 15,583 149,381
Total deferred outflows of resources 21,808 91,923 59,992 15,583 189,306
Liabilities
Current liabilities
Accounts payable 7,724 48,790 134,612 30,507 221,633
Salaries and benefits payable 16,668 80,155 58,137 14,279 169,239
Due to other funds - 394,618 - - 394,618
Due to other governments - 7,008 5,852 931 13,791
Unearned revenue 1,648 8,862 11,660 - 22,170
Compensated absences 20,408 47,200 18,353 1,344 87,305
Total OPEB liability 470 1,108 795 - 2,373
Total current liabilities 46,918 587,741 229,409 47,061 911,129
Noncurrent liabilities
Compensated absences 30,612 70,800 27,530 2,015 130,957
Total OPEB liability 19,093 45,039 32,311 - 96,443
Net pension liability 54,361 286,504 182,262 60,928 584,055
Total noncurrent liabilities 104,066 402,343 242,103 62,943 811,455
Total liabilities 150,984 990,084 471,512 110,004 1,722,584
Deferred Inflows of Resources
OPEB deferred inflows 6,798 16,035 11,504 - 34,337
Pension deferred inflows 36,715 193,502 123,098 41,150 394,465
Total deferred intflows of resources 43,513 209,537 134,602 41,150 428,802
Net Position
Net investment in capital assets 16,044 1,128,044 1,588,601 3,967,066 6,699,755
Unrestricted 39,041 (901,543) 531,570 1,420,057 1,089,125
Total net position 55,085$ 226,501$ 2,120,171$ 5,387,123$ 7,788,880$
City of Edina
Combining Statement of Net Position - Nonmajor Proprietary Funds
December 31, 2025
131
Art Center
Edinborough
Park
Centennial
Lakes Braemar Field
Total
Nonmajor
Proprietary
Funds
Operating Revenues
Sales - retail -$ 5,241$ -$ -$ 5,241$
Sales - concessions - 72,311 50,530 - 122,841
Memberships - 140,717 - 30,996 171,713
Admissions - 758,273 - - 758,273
Building rental - 218,295 86,148 494,310 798,753
Rental of equipment - - 437,326 - 437,326
Greens fees - - 316,737 - 316,737
Class registration and other fees 137,911 216,196 315,394 288 669,789
Total operating revenues 137,911 1,411,033 1,206,135 525,594 3,280,673
Operating Expenses
Cost of sales and services - 31,924 16,161 - 48,085
Personal services 279,013 1,217,225 869,625 250,366 2,616,229
Contractual services 62,572 404,106 388,078 258,241 1,112,997
Commodities 20,616 133,764 144,291 5,620 304,291
Internal Services 53,639 180,095 147,321 37,410 418,465
Depreciation 3,780 266,986 165,357 528,577 964,700
Total operating expenses 419,620 2,234,100 1,730,833 1,080,214 5,464,767
Operating income (loss)(281,709) (823,067) (524,698) (554,620) (2,184,094)
Nonoperating Revenues (Expenses)
Investment income 3,220 8,728 19,828 88,434 120,210
Gain (loss) on sale of capital assets - - 5,002 - 5,002
Donations 8,891 - 26,701 - 35,592
Miscellaneous 7,035 - - - 7,035
Total nonoperating revenue
(expenses)19,146 8,728 51,531 88,434 167,839
Income before transfers (262,563) (814,339) (473,167) (466,186) (2,016,255)
Transfers In 301,672 17,928 769,922 1,355 1,090,877
Change in net position 39,109 (796,411) 296,755 (464,831) (925,378)
Net Position - Beginning 15,976 1,022,912 1,823,416 5,851,954 8,714,258
Net position - ending 55,085$ 226,501$ 2,120,171$ 5,387,123$ 7,788,880$
City of Edina
Combining Statement of Revenues, Expenses, and Changes
in Net Position - Nonmajor Proprietary Funds
For the Year Ended December 31, 2025
132
Art Center
Edinborough
Park
Centennial
Lakes Braemar Field
Total Nonmajor
Proprietary
Funds
Cash Flows - Operating Activities
Receipts from customers and users 136,088$ 1,316,406$ 1,207,118$ 526,518$ 3,186,130$
Payments to suppliers (140,846) (801,124) (606,989) (313,611) (1,862,570)
Payments to employees (294,306) (1,221,354) (932,906) (249,035) (2,697,601)
Net cash flows -
operating activities (299,064) (706,072) (332,777) (36,128) (1,374,041)
Cash Flows - Noncapital
Financing Activities
Grants and contributions 15,926 - 26,701 - 42,627
Change in due to other funds - 394,618 - - 394,618
Transfer from other funds 301,672 17,928 769,922 1,355 1,090,877
Net cash flows - noncapital
financing activities 317,598 412,546 796,623 1,355 1,528,122
Cash Flows - Capital and Related
Financing Activities
Interest paid on debt - - (1,308) - (1,308)
Proceeds from disposal of capital assets - - 5,002 - 5,002
Net cash flows -
capital and related
financing activities - - 3,694 - 3,694
Cash Flows - Investing Activities
Interest and dividends received 3,201 11,730 19,420 89,553 123,904
Net change in cash and cash equivalents 21,735 (281,796) 486,960 54,780 281,679
Cash and cash equivalents, January 1 184,857 281,796 529,059 1,485,336 2,481,048
Cash and cash equivalents, December 31 206,592$ -$ 1,016,019$ 1,540,116$ 2,762,727$
Reconciliation of Operating
Income (Loss) to Net Cash
Flows - Operating Activities
Operating income (loss)(281,709)$ (823,067)$ (524,698)$ (554,620)$ (2,184,094)$
Adjustments to reconcile operating
income (loss) to net cash flows -
operating activities
Depreciation expense 3,780 266,986 165,357 528,577 964,700
Accounts receivable (1,219) (94,725) 1,716 934 (93,294)
Due from other governments (604) 98 (733) (10) (1,249)
Prepaid items - - 1,982 - 1,982
Accounts payable (3,960) (47,942) 87,195 (2,260) 33,033
Due to other governmental units (59) (3,293) (315) (10,080) (13,747)
Salaries payable 2,371 2,865 11,101 2,044 18,381
OPEB 1,899 4,478 3,214 - 9,591
Pension related activity (23,220) (14,916) (77,425) (1,424) (116,985)
Compensated absences payable 3,657 3,444 (171) 711 7,641
Total adjustments (17,355) 116,995 191,921 518,492 810,053
Net cash flows -
operating activities (299,064)$ (706,072)$ (332,777)$ (36,128)$ (1,374,041)$
City of Edina
Combining Statement of Cash Flows - Nonmajor Proprietary Funds
Year Ended December 31, 2025
133
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.
134
Police Seizure
Public Safety
Training
Facility
Minnesota Task
Force 1 Total
Assets
Cash and investments 3,541$ 287,259$ -$ 290,800$
Accounts receivable - 11 - 11
Due from other governments - 83,196 817,288 900,484
Total assets 3,541 370,466 817,288 1,191,295
Liabilities
Cash overdraft - - 519,320 519,320
Accounts payable - 49,246 - 49,246
Salaries payable - 14,256 12,027 26,283
Due to other governments - 321 206,933 207,254
Unearned revenue - 5,087 - 5,087
Total liabilities - 68,910 738,280 807,190
Net Position
Held in custody for other governmental units 3,541$ 301,556$ 79,008$ 384,105$
Police Seizure
Public Safety
Training
Facility
Minnesota Task
Force 1 Total
Additions
Collections on behalf of others -$ 1,137,920$ 1,610,752$ 2,748,672$
Deductions
Payments on behalf of others - 1,065,102 1,565,872 2,630,974
Change in net position - 72,818 44,880 117,698
Net Position
Beginning of year 3,541 228,738 34,128 266,407
End of year 3,541$ 301,556$ 79,008$ 384,105$
Combining Statement of Changes Fiduciary Net Position
Year Ended December 31, 2025
City of Edina
Combining Statement of Fiduciary Net Position
December 31, 2025
City of Edina
Custodial Funds
Custodial Funds
135
Centennial
District
No. 1203
Southdale 2
District
No. 1208
Pentagon Park
District
No. 1211
Grandview 2
District
No. 1212 and
1213
66th West
District
No. 1214
50th and France
2 District
No. 1215
44th and France
2 District
No. 1216
West 76th Street
District
No. 1217
Amundson
Avenue District
No. 1219
Eden/Wilson
District
No. 1222 Total
Assets
Cash and investments 796,984$ 6,423,200$ 3,546,506$ 1,764,354$ 21,134$ 630,009$ 177,093$ 25,520$ 161,188$ 830,244$ 14,376,232$
Accrued interest 13,107 43,815 16,103 1,748 9,237 374 999 125 125 1,388 87,021
Loans receivable - 5,669,809 - - - - - - - - 5,669,809
Due from other districts 5,850,000 169,037 - - - - - - - - 6,019,037
Due from other governments - - 137,063 - - - - - - - 137,063
Total assets 6,660,091$ 12,305,861$ 3,699,672$ 1,766,102$ 30,371$ 630,383$ 178,092$ 25,645$ 161,313$ 831,632$ 26,289,162$
Liabilities
Accounts payable -$ -$ 274,882$ -$ -$ 404,928$ 126,954$ 15,129$ -$ 214,537$ 1,036,430$
Due to other districts - - - 500,000 169,037 4,150,000 - - - 1,200,000 6,019,037
Due to other governments - 100,000 4,519 2,202 590 2,190 1,100 637 640 138,277 250,155
Salaries and benefits payable - - 2,271 226 - 445 226 - - 2,045 5,213
Unearned revenue 13,000 - - - - - - - - - 13,000
Total liabilities 13,000 100,000 281,672 502,428 169,627 4,557,563 128,280 15,766 640 1,554,859 7,323,835
Fund Balances
Restricted 6,647,091 12,205,861 3,418,000 1,263,674 (139,256) (3,927,180) 49,812 9,879 160,673 (723,227) 18,965,327
Total liabilities and
fund balances 6,660,091$ 12,305,861$ 3,699,672$ 1,766,102$ 30,371$ 630,383$ 178,092$ 25,645$ 161,313$ 831,632$ 26,289,162$
City of Edina
Schedule of Balance Sheet Accounts -
Tax Increment Financing Districts
December 31, 2025
136
Centennial
District
No. 1203
Southdale 2
District
No. 1208
Pentagon Park
District
No. 1211
Grandview 2
District
No. 1212 and
1213
66th West
District
No. 1214
50th and
France 2
District
No. 1215
44th and
France 2
District
No. 1216
West 76th
Street District
No. 1217
Amundson
Avenue District
No. 1219
Eden/Wilson
District
No. 1222 Total
Revenues
Tax increments -$ -$ 2,092,482$ 583,264$ 10,511$ 899,840$ 282,120$ 33,621$ 30,326$ 885,238$ 4,817,402$
Investment income 102,646 341,845 102,082 37,980 46,914 5,038 6,143 902 1,980 45,804 691,334
Total revenues 102,646 341,845 2,194,564 621,244 57,425 904,878 288,263 34,523 32,306 931,042 5,508,736
Expenditures
Current
General government 29,383 100,000 589,219 29,467 591 843,286 267,943 32,208 641 688,501 2,581,239
Capital outlay
General government - - - - - - - - - 1,134,638 1,134,638 #REF!
Total expenditures 29,383 100,000 589,219 29,467 591 843,286 267,943 32,208 641 1,823,139 3,715,877
Excess of revenues over
(under) expenditures 73,263 241,845 1,605,345 591,777 56,834 61,592 20,320 2,315 31,665 (892,097) 1,792,859
Other Financing Sources (Uses)
Transfers out - - - (466,450) - - - - - (119,898) (586,348)
Total other financing
sources (uses)- - - (466,450) - - - - - (119,898) (586,348)
Net change in
fund balances 73,263 241,845 1,605,345 125,327 56,834 61,592 20,320 2,315 31,665 (1,011,995) 1,206,511
Fund Balances
Beginning of year 6,573,828 11,964,016 1,812,655 1,138,347 (196,090) (3,988,772) 29,492 7,564 129,008 288,768 17,758,816
End of year 6,647,091$ 12,205,861$ 3,418,000$ 1,263,674$ (139,256)$ (3,927,180)$ 49,812$ 9,879$ 160,673$ (723,227)$ 18,965,327$
City of Edina
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Tax Increment Financing Districts
Year Ended December 31, 2025
137
STATISTICAL SECTION
138
(THIS PAGE LEFT BLANK INTENTIONALLY)
139
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
140
Table 1
2016 2017 2018 a 2019 2020 2021 2022 2023 2024 2025
Governmental Activities
Net Investment in Capital Assets 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$ 161,526,746$
Restricted 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 91,216,438
Unrestricted 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 21,311,659
Total Governmental
Activities Net Position 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$ 274,054,843$
Business-Type Activities
Net Investment in Capital Assets 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$ 107,715,617$
Restricted 804,393 1,338,276 1,360,336 1,360,336 1,268,479 1,225,093 - 1,245,001 1,243,768 1,241,704
Unrestricted 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 54,320,092
Total Business-Type
Activities Net Position 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$ 163,277,413$
Primary Government
Net Investment in Capital Assets 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$ 269,242,363$
Restricted 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 92,458,142
Unrestricted 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 75,631,751
Total Primary Government
Net Position 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$ 437,332,256$
a 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
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
141
Table 2
2016 2017 2018 a 2019 2020 b 2021 2022 2023 2024 2025
ExpensesGovernmental Activities:General Government 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$ 13,080,465$ Public Safety 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 35,649,598 Public Works 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 20,630,137 Parks 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 10,217,789 Interest on Long-Term Debt 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 4,457,837 Total Governmental Activities Expenses 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 84,035,826 Business-Type Activities:Water 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 7,630,315 Sewer - - - - 7,641,660 7,690,708 8,612,892 9,155,586 9,258,115 10,022,477 Stormwater - - - - 3,424,049 3,146,475 2,735,091 4,031,428 4,597,085 5,115,530 Recycling - - - - 1,392,003 1,956,546 1,838,148 1,671,424 1,884,856 1,810,261 Liquor 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 10,695,186 Aquatic Center 915,560 1,015,328 996,671 979,376 386,026 1,052,346 1,218,383 1,336,122 1,411,631 1,376,667 Golf Course 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 5,551,162 Arena 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 3,632,146 Community Activity Centers 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 5,428,159 Total Business-Type Activities Expenses 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 51,261,903
Total Primary Government Expenses 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$ 135,297,729$
Program RevenuesGovernmental Activities:Charges for Services:General Government 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$ 3,541,521$ Public Safety 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 12,547,310 Other Activities 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 2,126,337 Operating Grants and Contributions 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 8,615,771 Capital Grants and Contributions 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 18,093,522 Total Governmental Activities Program Revenues 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 44,924,461 Business-Type Activities:Charges for Services:Water 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 13,473,414 Sewer - - - - 10,622,411 10,732,193 12,706,062 10,438,055 11,744,821 12,220,680 Stormwater - - - - 4,773,432 5,207,295 5,389,214 5,934,139 6,349,555 6,937,782 Recycling - - - - 1,148,338 1,447,226 1,485,925 1,584,965 1,740,862 1,763,551 Liquor 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 11,074,302 Aquatic Center 956,068 962,857 997,727 996,778 - 1,071,692 1,144,569 1,120,598 1,122,688 1,143,074 Golf Course 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 6,328,908 Arena 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 2,813,362 Community Activity Centers 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 3,314,409 Operating Grants and Contributions 445,464 179,086 545,682 44,953 47,780 404,419 271,640 428,035 225,531 210,066 Capital Grants and Contributions - 904,201 - 692,281 396,103 - - - - 54,999 Total Business-Type Activities Program Revenues 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 59,334,547 Total Primary Government Program
Revenues 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$ 104,259,008$
Net (Expense) Revenue Governmental Activities (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)$ (39,111,365)$ Business-Type Activities 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 8,072,644
Total Primary Government Net Expense (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)$ (31,038,721)$
General Revenues and Other Changes in Net Position Governmental Activities:Property Taxes 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$ 57,829,251$ Tax Increment Collections 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 4,817,402 Franchise Taxes 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 3,652,054 Lodging Taxes 22,624 21,006 25,298 24,119 8,313 17,214 25,751 28,675 30,240 31,552 General Sales Tax - - - - - - - 5,501,492 6,537,828 7,427,094 Unrestricted Investment Earnings 344,277 514,073 901,405 2,037,306 1,835,870 (372,080) (2,903,247) 5,324,618 3,949,750 6,388,002 Gain on Disposal of Capital Assets 65,044 - 5,032,815 408,659 - 101,404 53,576 124,585 394,009 262,622 Transfers 99,573 5,059 305,428 158,352 283,836 772,460 (3,080,537) 363,287 40,144 (101,688) Total Governmental Activities 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 80,306,289 Business-Type Activities:Lodging Taxes - - - - - - - - 4,875 - Unrestricted Investment Earnings 136,208 254,990 481,754 1,064,942 945,580 (141,650) (980,198) 2,142,983 1,830,869 2,959,530 Gain (Loss) on Disposal of Capital Assets 35,946 6,554 - - 7,359 - - 28,362 52,607 19,369 Transfers (99,573) (5,059) (305,428) (158,352) (283,836) (772,460) 3,080,537 (363,287) (40,144) 101,688 Total Business-Type Activities 72,581 256,485 176,326 906,590 669,103 (914,110) 2,100,339 1,808,058 1,848,207 3,080,587
Total Primary Government 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$ 83,386,876$
Change in Net PositionGovernmental Activities 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$ 41,194,924$ Business-Type Activities 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 11,153,231
Total Primary Government 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$ 52,348,155$
a 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.
b 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
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
142
Table 3
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable 27,643$ 13,124$ -$ 28,403$ 28,403$ 85,083$ 80,509$ 96,823$ 157,932$ 168,043$
Restricted 927,673 961,133 961,133 58,086 58,086 58,086 58,086 58,086 58,086 48,430
Assigned 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 4,494,920
Unassigned 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 31,253,577
Total General Fund 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$ 35,964,970$
All Other Governmental
Funds
Nonspendable -$ -$ -$ -$ -$ 71,784$ 1,479$ 2,196$ 12,960$ 10,832$
Restricted, Reported in
Special Revenue Funds 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 40,121,667
Debt Service Funds 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 7,640,287
Construction Funds 209,510 78,702 30,072 - - - - 3,419,009 46,999,685 59,846,146
Assigned, Reported in:
Capital Projects Funds 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 10,837,047
Unassigned, Reported in
Special Revenue Funds (190,845) - - - (50,610) - - - (95,754) (401,623)
Total all Other Governmental
Funds 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$ 118,054,356$
City of Edina
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
143
Table 4
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
General Property Taxes 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$ 57,822,395$
Tax Increment Collections 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 4,817,402
Franchise Taxes 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 3,652,054
Lodging Fees 22,624 21,006 25,298 24,119 8,313 17,214 25,751 28,675 30,240 31,552
General Sales Tax - - - - - - - 5,450,871 6,537,828 7,427,094
Special Assessments 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 4,854,785
License and Permits 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 6,843,434
Intergovernmental 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 25,364,284
Charges for Services 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 7,854,660
Fines and Forfeitures 1,016,817 1,135,986 1,122,426 1,097,122 485,472 460,914 359,680 488,872 621,837 773,992
Investment Income 344,344 512,448 889,550 1,989,881 1,835,870 (372,080) (2,903,247) 5,324,618 3,949,750 6,388,002
Rental of Property 514,955 459,099 632,011 487,797 479,148 491,579 711,100 34,017 465,411 615,976
Parkland Dedication 1,250,000 33,460 - - - - - - - -
Other Revenues 2,599,830 761,281 990,277 600,905 3,069,269 704,558 4,737,252 975,653 635,253 2,415,545
Total Revenues 63,237,329 61,790,035 67,513,677 68,666,604 82,182,849 73,994,355 77,440,867 90,816,984 97,178,697 128,861,175
Expenditures
General Government 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 13,978,947
Public Safety 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 33,782,488
Public Works 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 13,173,866
Parks 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 8,166,870
Capital Outlay 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 49,486,525
Debt Service:
Principal 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 22,734,750
Interest and Other Charges 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 4,328,375
Total Expenditures 61,768,401 58,428,546 70,215,055 71,387,019 68,840,785 76,988,554 103,333,193 97,099,302 110,066,681 145,651,821
Revenues Over (Under)
Expenditures 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) (16,790,646)
Other Financing Sources (Uses)
Utility Contributions from Other Funds - - 37,978 115,494 - - - - - -
Transfers In 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 3,860,308
Transfers Out (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) (3,984,644)
Sale of Capital Assets 65,044 84,388 6,201,630 1,172,391 251,670 3,000,821 106,406 77,700 394,009 262,622
Loans Issued - - - 750,000 - - - - - -
Bonds Issued 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 21,360,000
Refunding Bonds Issued 3,635,000 8,955,000 - - - - - - - -
Premium on Bonds Issued 450,409 798,791 74,787 799,080 34,176 2,329,645 1,691,560 95,608 3,390,329 977,298
Discount on Bonds Issued (16,805) (51,148) (18,299) - - - - - - -
Payment to Refunding Escrow - (3,785,000) (9,480,000) - - - - - - -
Total Other Financing
Sources (Uses)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 22,475,584
Net Change in Fund Balances 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$ 5,684,938$
Debt Service as a Percentage of
Noncapital Expenditures 16.2%15.9%14.6%13.8%13.2%15.6%15.2%10.2%10.8%28.2%
Fiscal Year Fiscal Year
City of Edina
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
144
Table 5
City Tax City
Used Adjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
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
17,218,965 17,218,965 17,105,865 211,470 189,264 194,635 30.236%0.00000%3.418
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.
Source: Hennepin County Taxpayer Services.
City of Edina
Assessed Value, Actual Value and Tax Capacity of Taxable Property
Last Ten Fiscal Years
2019
2018
2021
Year
2016
2017
2020
2025
2024
2023
2022
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
Fiscal Direct
145
Table 6
Total
Basic Debt HRA Total Tax Direct and
Rate Rate Rate Capacity RMV Hennepin Tax Cap.RMV Other Overlap
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%
27.468%2.768%0.134%30.370%0.000%37.081%29.110%0.204%8.411%104.972%
RMV: Referendum Market Value
Geographic boundaries for overlapping district are not identical to the City's boundaries. City boundaries contain six different
school districts but only ISD #273 is shown here. Other districts include Mosquito Control, Met Council, Metro Transit,
Hennepin Parks, Park Museum and Regional Railroad Authority. In addition, there are two watershed districts in the City,
Nine Mile Creek and Minnehaha Creek, and rates for Nine Mile are included in Other. Total rates do not include RMV rates.
Source: Hennepin County Taxpayer Services.
City of Edina
Direct and Overlapping Tax Capacity Rates
Last Ten Fiscal Years
2019
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
2018
2016
2017
2025
2024
2023
2021
2020
2022
146
Table 7
Percentage Percentage
of Total of Total
Tax Capacity Rank Capacity Tax Capacity Rank Capacity
Galleria Shopping Center 3,176,910$ 1 1.50%2,257,995$ 2 1.80%
Southdale Shopping Center 2,669,250 2 1.26%2,727,650 1 2.17%
Centennial Lakes Office 2,382,374 3 1.13%DNA DNA DNA
Centennial Lakes Plaza 1,319,250 4 0.62%DNA DNA DNA
The Fred 1,236,250 5 0.58%DNA DNA DNA
Southdale Medical Building 1,209,084 6 0.57%1,491,755 3 1.19%
Cedars of Edina 1,202,515 7 0.57%DNA DNA DNA
The Bower Residences 1,121,250 8 0.53%DNA DNA DNA
Nolan Mains 949,838 9 0.45%DNA DNA DNA
71 France Apartments 916,011 10 0.43%DNA DNA DNA
Southdale Office Center DNA DNA DNA 906,994 4 0.72%
Centennial Lakes Retail DNA DNA DNA 859,250 5 0.68%
Centennial Lakes Phase V DNA DNA DNA 703,404 6 0.56%
Centennial Lakes Phase IV DNA DNA DNA 689,778 7 0.55%
7700 France DNA DNA DNA 543,365 8 0.43%
The District DNA DNA DNA 534,756 9 0.43%
Westin Galleria DNA DNA DNA 507,449 10 0.40%
Totals 16,182,732$ 7.65%11,222,396$ 8.93%
DNA: Data is not available
Source: City of Edina Assessing Office
20162025
Taxpayer
City of Edina
Principal Property Tax Payers
Current Year and Nine Years Ago
147
Table 8
Total Collections in
Tax Percentage Subsequent Percentage
Levy Amount of Levy Years Amount of Levy
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%347,497 54,063,079 99.35%
59,010,154 57,996,702 98.28%- 57,996,702 98.28%
Source: Hennepin County Taxpayer Services.
City of Edina
Property Tax Levies and Collections
Last Ten Fiscal Years
Total Collections to Date
Taxes
Collected within the
Fiscal Year of the Levy
2017
Payable
2025
2024
2023
2022
2021
2020
2019
2018
2016
148
Table 9
General Public Tax Permanent EEEP Rec.Utility Total Percentage
Obligation Project Increment Improvement Revenue Notes Leases Subscriptions Facility Revenue Leases Primary of Personal Per
Debt Revenue Bonds Revolving Bonds Payable Liability Liability Bonds Bonds Payable Government Income a Capita a
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
73,593 24,889 13,087 28,660 - 750 3 534 7,647 52,554 465 202,181 3.96%3,690
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.
2020
2019
City of Edina
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(dollars in thousands, except per capita)
Governmental Activities Business-Type Activities
2025
2024
Year
Fiscal
2018
2016
2017
2023
2022
2021
149
Table 10
Less: Amounts
General Available Percentage
Obligation in Debt of Property
Debt a Service Fund b Total Value c Per Capita d
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
73,593 7,640 65,953 0.38%1,204
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
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(dollars in thousands, except per capita)
2020
2019
Year
Fiscal
2018
2016
2017
2025
2024
2023
2022
2021
150
Table 11
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt
Hennepin County 1,210,482,117$ 7.28%88,123,098$
Hennepin Suburban Park District 51,775,077 9.80%5,073,958
Hennepin Regional Rail Authority 71,548,562 7.28%5,208,735
School Districts
ISD No. 273 (Edina)145,229,446 99.09%143,907,858
ISD No. 270 (Hopkins)119,349,532 8.29%9,894,076
ISD No. 271 (Bloomington)163,631,388 0.01%16,363
ISD No. 272 (Eden Prairie)95,454,751 0.95%906,820
ISD No. 280 (Richfield)113,833,182 29.02%33,034,389
ISD No. 283 (St. Louis Park)228,707,113 0.03%68,612
Metro Council 73,513,264 3.86%2,837,612
Total Overlapping Debt 2,273,524,432$ 289,071,522$
City of Edina 141,516,571$ 100.00%141,516,571$
Total Overlapping and Direct Debt 2,415,041,003$ 430,588,093$
Ratio of Debt Per Capita (54,785 Population)7,860$
Ratio of Debt to Estimated Market Valuation of $17,218,965,000 2.50%
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Source: Hennepin County Taxpayer Services
Direct Debt
Debt Ratios
City of Edina
Direct and Overlapping Governmental Activities Debt
As of December 31, 2025
151
Table 12
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt Limit 308,890$ 323,556$ 346,426$ 368,150$ 383,574$ 400,331$ 413,891$ 463,842$ 499,411$ 516,569$
Total Net Debt
Applicable
to Limit 48,325 50,115 37,595 37,265 33,970 31,705 53,460 50,910 85,230 84,370
Legal Debt
Margin 260,565$ 273,441$ 308,831$ 330,885$ 349,604$ 368,626$ 360,431$ 412,932$ 414,181$ 432,199$
Total Net Debt
Applicable to
the Limit as a
Percentage of
Debt Limit 15.64%15.49%10.85%10.12%8.86%7.92%12.92%10.98%17.07%16.33%
Legal Debt Margin Calculation for Fiscal Year 2025
Market Value (After Fiscal Disparities)17,218,964,600$
Debt Limit (3% of Market Value)516,568,938
Debt Applicable to Limit:
General Obligation Bonds 60,590,000
Public Project Revenue Bonds 23,780,000
Total Debt Applicable to Limit 84,370,000
Legal Debt Margin 432,198,938$
Fiscal Year
City of Edina
Legal Debt Margin Information
Last Ten Fiscal Years
(dollars in thousands)
152
Table 13
Less:
Operating Net Available
Revenue Expenses Revenue Principal Interest Total Coverage
Public Project Revenue Bonds (Annual Appropriation Lease Revenue)
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
2025 1,563,000 - 1,563,000 1,135,000 672,590 1,807,590 0.86
Tax Increment Bonds
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
2025 4,680,338 - 4,680,338 270,000 434,750 704,750 6.64
Permanent Improvement Revolving Bonds (Special Assessment)
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
2025 2,510,093 - 2,510,093 1,940,000 1,025,870 2,965,870 0.85
Utility Bond
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
2025 34,391,208 23,572,288 10,818,920 4,995,000 1,843,138 6,838,138 1.58
Recreational Facility Bonds
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)
2025 10,283,136 10,480,898 (197,762) 1,009,000 248,744 1,257,744 (0.16)
Debt Service RequirementsFiscal
Year
City of Edina
Pledged Revenue Coverage
Last Ten Fiscal Years
153
Table 14
Estimated
Personal Per Capita High School
Income Personal Graduation Unemployment
Population (In thousands)Income Rate Rate
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%
54,785 5,106,510 93,210 98.3%3.20%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2024 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. 2024 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.
City of Edina
Demographic and Economic Statistics
Last Ten Fiscal Years
2020
2019
2018
2016
2017
Fiscal
Year
2025
2024
2023
2022
2021
154
Table 15
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
Edina Realty and Edina Realty Title 2,394 1 9.19%400 6 1.66%
Edina Public Schools ISD #273 1,713 2 6.58%1,245 2 5.18%
Fairview Southdale Hospital 1,624 3 6.23%2,613 1 10.87%
City of Edina 1,019 4 3.91%814 5 3.39%
BI Worldwide 754 5 2.89%1,000 3 4.16%
Western National Insurance Company 624 6 2.40%DNA DNA DNA
Lund Food Holdings, Inc 500 7 1.92%360 9 1.50%
Minneapolis Garage Door Experts 500 8 1.92%DNA DNA DNA
Dow Water & Process Solutions 375 9 1.44%DNA DNA DNA
Target 375 10 1.44%DNA DNA DNA
Regis Corporation DNA DNA DNA 900 4 3.75%
International Dairy Queen Inc.DNA DNA DNA 400 7 1.66%
FilmTec Corporation DNA DNA DNA 375 8 1.56%
JC Penny Co.DNA DNA DNA 276 10 1.15%
Totals 9,878 37.92%8,383 34.88%
DNA: Data is not available
Sources:
Data Axle Reference Solutions, written and telephone survey,
and the Minnesota Department of Employment and Economic Development.
2016 data from previous ACFR.
20162025
Employer
City of Edina
Principal Employers
Current Year and Nine Years Ago
155
Table 16
2016 b 2017 b 2018 2019 2020 b 2021 2022 2023 2024 2025
Administration
General Fund 5.00 5.00 5.00 5.00 7.00 7.00 8.00 8.00 8.00 8.00
Communications
General Fund 6.00 6.00 6.00 6.00 6.80 6.80 7.00 7.00 7.00 7.00
Internal Services - - - - 0.20 0.20 - - - -
Information Technology Services
Internal Services 5.00 5.00 6.00 6.00 7.00 7.00 9.00 9.00 9.00 9.00
Community Development
General Fund 12.00 12.00 12.00 12.00 12.00 12.00 12.00 13.00 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 12.00 12.00 17.30 17.30 15.00 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 1.35 1.35 1.00 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 2.00
Construction Fund 1.10 1.10 1.10 1.10 1.00 1.00 - - - -
Internal Services - - - - 4.35 5.35 8.00 8.00 8.00 8.00
Finance
General Fund 5.00 5.00 6.00 6.00 6.00 6.00 7.00 8.00 8.00 8.00
Utilities Fund 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00
Liquor Fund - - - - - - - - - -
Fire Protection
General Fund 45.90 45.90 45.80 49.80 63.35 63.35 66.55 71.55 71.55 77.55
Utilities Fund - - - - 1.65 1.65 1.45 1.45 1.45 1.45
Human Resources
General Fund 5.00 5.00 5.00 5.00 4.00 5.00 5.00 5.00 5.00 5.00
Internal Services - - - - 1.00 1.00 1.00 1.00 1.00 1.00
Parks & Recreation
General Fund 25.05 25.05 25.30 25.30 24.65 24.65 24.00 25.00 25.50 26.00
Aquatic Center 0.60 0.60 0.70 0.70 0.70 0.70 0.33 1.03 1.05 1.08
Golf Course 8.05 8.05 9.00 9.00 11.00 11.18 12.15 12.15 12.34 12.50
Arena 4.85 4.85 6.25 6.25 5.95 6.03 6.58 7.08 7.15 7.23
Sports Dome 0.15 0.15 1.00 1.00 1.05 1.08 0.53 0.03 0.03 0.03
Art Center 2.00 2.00 2.00 2.00 2.00 2.08 2.08 1.08 1.08 1.08
Edinborough Park 5.80 5.80 5.65 5.65 5.65 5.75 6.80 5.10 5.20 5.30
Centennial Lakes 5.00 5.00 5.05 5.05 5.00 5.03 5.03 5.03 5.05 5.08
Liquor Fund 9.00 9.00 9.00 9.00 8.50 9.50 9.50 9.50 9.60 9.70
Enterprise Funds - - - - 0.50 - - - - -
Police Protection
General Fund 72.55 72.55 76.55 76.55 77.00 78.00 78.00 80.00 84.00 86.00
Public Works
General Fund 25.40 25.40 23.30 23.30 19.15 19.15 24.00 26.00 26.00 26.00
Utilities Fund 16.85 16.85 18.65 18.65 19.05 20.05 15.00 16.00 16.00 17.00
Internal Services 10.25 10.25 10.20 10.20 6.60 6.60 7.00 7.00 7.00 7.00
Enterprise Funds - - - - 0.20 0.20 - - - -
Other - - - - - - - - - -
Total 286.55 286.55 296.55 300.55 324.00 330.00 337.00 349.00 354.00 364.00
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.
Source: City of Edina 2024-2025 Budget Book
Function
Budgeted Full-Time Employees for Fiscal Year a
City of Edina
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years
156
Table 17
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Government
Total City Employees 1,155 1,067 1,136 1,174 953 1,021 1,099 1,148 1,226 1,175
Votes Cast a 31,986 11,440 30,774 10,990 36,088 14,881 29,250 5,928 54,801 -
Public Works
Asphalt Placed (Tons)9,298 11,176 14,419 9,847 10,593 10,962 10,300 12,664 9,193 9,656
Concrete (cu. yds.)897 708 868 963 816 435 455 525 484 469
Public Safety
Fire Calls 1,276 1,220 1,321 1,600 1,265 1,419 1,431 1,577 1,514 1,571
Medical Calls 4,063 4,508 4,572 4,727 4,288 5,337 5,811 5,643 5,802 5,922
Police Calls for Service d 61,325 71,738 62,981 60,975 47,833 48,757 46,191 36,350 37,699 42,388
Internal Services
Vehicle Fixes 2,721 2,478 2,336 1,910 1,780 1,555 1,048 1,414 1,565 1,660
Utilities
Daily Consumption b 6,047 5,950 6,101 5,394 5,785 6,705 6,587 6,768 5,762 5,767
Aquatic Center
Attendance 108,609 89,318 88,342 83,499 - 88,217 81,184 80,225 70,686 75,179
Golf Course
Total Rounds Played c 61,256 23,241 20,679 60,561 74,180 76,383 75,437 75,684 77,782 81,508
N/A Data not available
a The City elections department runs general elections in even-numbered years and school district elections in odd-numbered years.
Number of votes cast tend to vary between even and odd-numbered years and based on presidential election cycles.
b Daily average of water pumped from city wells, measured in thousands of gallons.
c 27-hole golf course was closed and reconstructed into an 18-hole championship course from 2017-2018
d Changed from Crimes reported to provide full data of police service calls. In 2023, changed system where only serviced calls are tracked.
Source: Various City departments
Function
City of Edina
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year
157
Table 18
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Public Works
Miles of Streets 224 224 224 224 224 224 224 224 230 230
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 199 199 199 199 199 199 199 199 225 225
Sanitary Sewer Miles 186 186 186 186 186 186 186 186 200 200
Sewer Connections 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,889 13,889
Arena
Ice Sheets 4 4 4 4 4 4 4 4 4 4
Source: Various City departments
Function
City of Edina
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year