HomeMy WebLinkAbout2015 Comprehensive Annual Financial ReportComprehensive Annual
Financial Report for the Fiscal
Year Ended Dec. 31, 2015
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2015
Prepared by:
Department of Finance
Eric Roggeman – Treasurer and Finance Director
Kyle Sawyer – Assistant Finance Director
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
I. INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 4
Organization 5
Organization Chart 6
II. FINANCIAL SECTION
Independent Auditors' Report 7
Management's Discussion and Analysis 11
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements:
Balance Sheet - Governmental Funds 26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position 27
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 29
Statement of Net Position - Proprietary Funds 30
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds 31
Statement of Cash Flows - Proprietary Funds 32
Statement of Fiduciary Net Position - Agency Funds 34
Notes to Financial Statements 35
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund 73
Budgetary Comparison Schedule - Housing and Redevelopment Authority (HRA) 76
Other Post-Employment Benefits Plan Schedule of Funding Progress 77
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Defined Benefit Pension Plans GERF/PEPFF Retirement Funds
GERF Schedule of City's Proportionate Share of Net Pension Liability
& Schedule of City Contributions 78
PEPFF Schedule of City's Proportionate Share of Net Pension Liability
& Schedule of City Contributions 79
Notes to Required Supplementary Information 80
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 84
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Governmental Funds 85
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 86
Special Revenue Fund - Police Special Revenue
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 87
Special Revenue Fund - Braemar Memorial
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 88
Special Revenue Fund - Pedestrian and Cyclist Safety
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 89
Special Revenue Fund - Arts and Culture
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 90
Capital Projects Fund - Environmental Efficiency
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 91
Governmental Fund - Debt Service
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 94
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Governmental Fund - Construction
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 95
Combining Statement of Net Position - Nonmajor Proprietary Funds 98
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Nonmajor Proprietary Funds 99
Combining Statement of Cash Flows - Nonmajor Proprietary Funds 100
Combining Statement of Changes in Assets and Liabilities - Agency Funds 103
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates 105
Combined Schedule of Bonded Indebtedness 106
Schedule of Balance Sheet Accounts - Tax Increment Financing Districts 108
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Tax Increment Financing Districts 109
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component 112
Changes in Net Position 114
Fund Balances of Governmental Funds 116
Changes in Fund Balances of Governmental Funds 118
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property 120
Direct and Overlapping Tax Capacity Rates 121
Principal Property Tax Payers 122
Property Tax Levies and Collections 123
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Debt Capacity:
Ratios of Outstanding Debt by Type 124
Ratios of General Bonded Debt Outstanding 125
Direct and Overlapping Governmental Activities Debt 126
Legal Debt Margin Information 127
Pledged Revenue Coverage 128
Demographic and Economic Information:
Demographic and Economic Statistics 129
Principal Employers 130
Operating Information:
Full-Time Equivalent City Government Employees by Function 131
Operating Indicators by Function 132
Capital Asset Statistics by Function 133
www.EdinaMN.gov • 952-927-8861 • Fax 952-826-0390
June 6, 2016
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, 2015.
Management assumes full responsibility for the completeness and reliability of all of 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.
Malloy, Montague, Karnowski, Radosevich, & Co. P.A., 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, 2015. The independent auditor’s report is located at the front of the financial section of
this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements. The
MD&A complements this letter of transmittal and should be read in conjunction with it.
Profile of the City
The City, incorporated in 1888, is a fully developed first-ring suburb of Minneapolis. The City currently
occupies a land area of 16 square miles and serves a population of 50,261. Currently, 98% of the
City is developed with 55.5% of the land attributed to residential uses, 13.1% to roadways and 11.8%
supporting the park and open spaces. The remainder of the land is used for commercial, industrial
and public/semi-public uses. The City is empowered to levy a property tax on both real and personal
property located within its boundaries.
The City has operated under the Council-Manager form of government since 1955. Policy-making
and legislative authority are vested in a City Council (Council) consisting of the Mayor and four other
members, all elected on a non-partisan 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 and fire protection; the construction and
maintenance of highways, streets, and other infrastructure; water and sewer services and
recreational and cultural activities and events.
The Council is required to adopt a final budget by no later than the close of the 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.
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Local economy
The City currently enjoys a favorable economic environment and local indicators point to continued
stability. The region, while noted for a strong retail sector, enjoyed considerable re-development in
recent years. The re-development consisted of varied manufacturing, medical and high-tech base that
adds to the relative stability of the unemployment rate. Major industries with headquarters or divisions
within the government’s boundaries or in close proximity include medical services, retail operations
and banking services. Edina is home to over 50,000 jobs that are expected to remain stable over the
coming years.
The City has become known for its quality residential housing stock and attractive neighborhoods. To
date, approximately 98% of the available housing stock is in place. Although the emphasis has
changed over the years from exclusively single family housing to a more balanced mix of housing
types, the City’s concern for overall quality in residential development remains a top priority.
The City enjoys a AAA bond rating and a Aaa bond rating from Standard and Poors 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
Comprehensive Plan guides development and redevelopment and addresses changes likely to occur
due to various social and market forces. The City updated our Comprehensive Plan and submitted it
to the Metropolitan Council for review in 2008. A final version was adopted by the City Council in
2009.
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, expanding City services, 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 investments and compensated absences are all calculated as specified in the
policies. In addition, the City has $11,825,799 unassigned fund balance in the general fund. This
amount is $64,542 above the goal range identified in the policy.
Major initiatives
The City is continually working to update our aging infrastructure. Our annually adopted five-year
Capital Improvement Plan includes spending and financing projections for these projects.
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Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Edina for its
comprehensive annual financial report for the fiscal year ended December 31, 2014. This was the
seventh consecutive year that the government has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual 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
comprehensive annual 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,
Eric Roggeman
Finance Director
Kyle Sawyer
Assistant Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Edina
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2014
Executive Director/CEO
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CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2015
Term Expires
Mayor:
James Hovland December 31, 2016
Council Members:
Mary Brindle December 31, 2016
Ann Swenson December 31, 2016
Kevin Staunton December 31, 2018
Bob Stewart December 31, 2018
City Manager:
Scott Neal Appointed
Finance Director/Treasurer:
Eric Roggeman Appointed
City Clerk:
Debra Mangen Appointed
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CITY OF EDINA, MINNESOTA ResidentsCity CouncilCity ManagerAssistant City ManagerAdministrationCity ClerkLiquor Store OperationsEconomic Development/HRACommunications & Technology Information TechnologyHuman ResourcesFinancePolicePatrolInvestigationsAdministrative ServicesCommunity HealthFireFire & RescueBuilding InspectionsPublic WorksStreets MaintenanceUtility OperationsEquipment OperationsFacilities ManagementParks MaintenanceEngineeringDesign & Construction ManagementEnvironmental ServicesTransportation SystemsParks & RecreationAdministration & RecreationEnterprise FacilitiesCommunity DevelopmentPlanningAssessing6
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INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Edina, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Edina, Minnesota (the City) as of
and for the year ended December 31, 2015, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City’s preparation
and fair presentation of the financial statements 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, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
8
OPINIONS
In our opinion, the financial statements referred to on the previous page 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 as of December 31, 2015, 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.
EMPHASIS OF MATTER
As described in Note 1 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for
Pensions—an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition
for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68,
during the year ended December 31, 2015. Our opinion is not modified with respect to this matter.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the 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 RSI in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
financial statements and schedules, supplementary financial information, and statistical section, as listed
in the table of contents, are presented for purposes of additional analysis and are not required parts of the
basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such 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 auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund financial statements and schedules are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
(continued)
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The introductory section, supplementary financial information, and statistical section have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2016 on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose
of that report is 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 internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Minneapolis, Minnesota
June 6, 2016
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MANAGEMENT’S DISCUSSION AND ANALYSIS
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, 2015. 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 $225,316,482 (net position). Of
this amount, $38,363,235 (unrestricted net position) may be used to meet the City’s ongoing
obligations to citizens and creditors in accordance with the City's fund designations and fiscal
policies.
The City’s total net position decreased by $7,575,954; a $21,451,167 decrease from a change in
accounting principle related to pensions and an increase of $13,875,213 from current year
operations. $4,132,128 of the operations increase is due to special assessment revenues, which
help support our road reconstruction program. Also, $4,661,858 of the increase is due to Utility
revenues over expenses, which are being reinvested in new or rebuilt infrastructure according to
the City’s Capital Improvement Plan (CIP) and Utility Rate Study.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $44,539,728, a decrease of $5,497,051 in comparison with the prior year. The
decrease can be attributed to the general obligation refunding bond, series 2014B that was
issued in 2014 in the amount of $12,720,000 and refunded $6,700,000 of governmental fund
bonds in early 2015.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$11,825,799 or 34% of total general fund expenditures.
The City’s total bonded debt decreased by $6,021,375 during the current fiscal year, from
$117,110,970 to $111,089,595. The City and HRA issued new debt during the year consisting of
$14,275,000 general obligation bonds to finance various street and utility infrastructure
improvement projects, $3,490,000 HRA public project revenue bonds to refund old HRA debt,
and $2,140,000 revenue bonds to finance improvements at the golf course. A total of
$20,585,000 in bonds were redeemed in 2015 related to refunding debt issued in 2014 and 2015.
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
themselves.
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.
Management’s Discussion and Analysis (Continued)
12
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 utilities, 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 of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government-wide
financial statement. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures, and change in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains four individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement
of revenues, expenditures, and changes in fund balances for the general fund, Housing and
Redevelopment Authority fund, debt service fund and the construction fund.
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds are provided in the form
of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its general fund, debt service fund,
construction fund, all of its special revenue funds, the environmental efficiency capital
projects fund, and proprietary funds. A budgetary comparison statement has been provided
for the general fund, debt service fund, construction fund, all the special revenue funds, and
the environmental efficiency capital projects fund to demonstrate compliance with these
budgets.
Management’s Discussion and Analysis (Continued)
13
Proprietary funds. The City maintains five major enterprise funds and one internal service
fund. Enterprise funds are used to report the same functions presented as business-type
activities in the governmental-wide financial statements. The City uses enterprise funds to
account for its utility, liquor, aquatic center, golf course and arena operations.
Data from the other proprietary funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major proprietary 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 uses its
internal service fund to account for risk management activities, including worker’s
compensation, volunteer accident, and property/casualty insurance. Because the internal
service activities predominantly benefit government rather than business-type functions,
these services have been included within governmental activities in the government-wide
financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the
City’s own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government–wide and fund financial statements.
Other information. The combining statements referred to earlier in connection with non-major
governmental and enterprise funds are presented immediately following the required supplementary
information on budgetary comparisons.
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 exceeded liabilities by $225,316,482 at the close of the most
recent fiscal year.
The largest portion of the City's net position ($169,234,412 or 75%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2015 2014 2015 2014 2015 2014
Assets:
Current and
other assets 68,610,375$ 74,584,744$ 25,007,055$ 34,082,921$ 93,617,430$ 108,667,665$
Capital assets 158,595,429 148,079,729 123,960,540 114,997,600 282,555,969 263,077,329
Total assets 227,205,804$ 222,664,473$ 148,967,595$ 149,080,521$ 376,173,399$ 371,744,994$
Deferred outflows of resources:
Pension plan deferments 3,643,551$ -$ 571,368$ -$ 4,214,919$ -$
Liabilities:
Long-term liabilities
outstanding 91,065,988$ 67,962,254$ 40,070,384$ 33,901,645$ 131,136,372$ 101,863,899$
Other liabilities 12,337,783 19,408,776 8,376,163 17,579,883 20,713,946 36,988,659
Total liabilities 103,403,771$ 87,371,030$ 48,446,547$ 51,481,528$ 151,850,318$ 138,852,558$
Deferred inflows of resources:
Pension plan deferments 2,723,965$ -$ 497,553$ -$ 3,221,518$ -$
Net position:
Net investment in
capital assets 85,838,618$ 85,708,114$ 83,395,794$ 75,803,672$ 169,234,412$ 161,511,786$
Restricted 16,925,171 18,268,724 793,664 619,295 17,718,835 18,888,019
Unrestricted 21,957,830 31,316,605 16,405,405 21,176,026 38,363,235 52,492,631
Total net position 124,721,619$ 135,293,443$ 100,594,863$ 97,598,993$ 225,316,482$ 232,892,436$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net position ($17,718,835) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position
($38,363,235) 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 a decrease of $14,129,396 in unrestricted net position due to the implementation of a new
accounting standard related to pension obligations. Further information regarding this accounting
standard can be found in the notes to the financial statements. This change also impacted the change
in long-term liabilities, deferred outflows of resources, and deferred inflows of resources. The decline
in current and other assets, and other liabilities relates to the use of refunding bonds cash held in
escrow to pay refunded debt.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $13,875,213 during the current fiscal year, prior
to the change in accounting principle related to the aforementioned accounting standard. Factors
contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2015 2014 2015 2014 2015 2014
Revenues:
Program revenues:
Charges for services 11,164,102$ 10,592,168$ 41,063,598$ 39,889,554$ 52,227,700$ 50,481,722$
Operating grants and
contributions 3,122,178 1,578,538 595,141 428,416 3,717,319 2,006,954
Capital grants and
contributions 10,044,077 8,244,695 - - 10,044,077 8,244,695
General revenues:
Property taxes 29,632,072 27,062,224 - - 29,632,072 27,062,224
Other taxes 3,904,650 7,119,402 - - 3,904,650 7,119,402
Gain on disposal
of assets 41,900 29,037 39,427 - 81,327 29,037
Unrestricted investment
earnings 195,620 440,051 91,907 191,974 287,527 632,025
Total revenues 58,104,599 55,066,115 41,790,073 40,509,944 99,894,672 95,576,059
Expenses:
General government 8,518,236 8,522,319 - - 8,518,236 8,522,319
Public safety 19,507,770 18,145,498 - - 19,507,770 18,145,498
Public works 15,284,777 15,553,852 - - 15,284,777 15,553,852
Parks 3,385,367 3,330,781 - - 3,385,367 3,330,781
Interest on long-term debt 2,180,678 1,989,863 - - 2,180,678 1,989,863
Utilities - - 14,963,304 14,207,197 14,963,304 14,207,197
Liquor - - 11,818,602 12,393,218 11,818,602 12,393,218
Aquatic center - - 872,960 827,485 872,960 827,485
Golf course - - 3,409,343 3,342,544 3,409,343 3,342,544
Arena - - 2,642,097 2,375,173 2,642,097 2,375,173
Community activity
centers - - 3,436,325 2,975,782 3,436,325 2,975,782
Total expenses 48,876,828 47,542,313 37,142,631 36,121,399 86,019,459 83,663,712
Increase in net position
before transfers 9,227,771 7,523,802 4,647,442 4,388,545 13,875,213 11,912,347
Transfers (2,230,966) (9,605,225) 2,230,966 9,605,225 - -
Change in net position 6,996,805 (2,081,423) 6,878,408 13,993,770 13,875,213 11,912,347
Net position - January 1
as previously reported 135,293,443 137,374,866 97,598,993 83,605,223 232,892,436 220,980,089
Change in accounting principle (17,568,629) - (3,882,538) - (21,451,167) -
Net position - January 1
as restated 117,724,814 137,374,866 93,716,455 83,605,223 211,441,269 220,980,089
Net position - December 31 124,721,619$ 135,293,443$ 100,594,863$ 97,598,993$ 225,316,482$ 232,892,436$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities increased the City's net position by $6,996,805, accounting for 50% of the
total growth in net position. Key elements of this increase before the change in accounting principle
are as follows.
Operating grants and contributions increased by $1,543,640, or 98% in 2015. This is primarily
the result of livable communities grants received, that were passed through to developers for
expenses incurred related to economic development of the Pentagon Park area. Indicative of
their name, pass through grants have no net impact on the City’s net position.
Capital grants and contributions increased by $1,799,382, or 22% in 2015. This is a result of
increased state maintenance aid received for various infrastructure projects, most notably the
54th street bridge and street repair.
Property taxes increased by $2,569,848, as the result of a new levy to fund the sports dome
construction and an increased levy for the City’s equipment replacement program.
Net transfers decreased by $7,374,259. In 2014, large transfers were made from the
construction fund to the arena and sports dome funds to reimburse for proceeds initially
received in the construction fund for capital projects at those facilities.
Other taxes decreased by $3,214,752 due to a decline in tax increment collections.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services19%
Operating grants and
contributions
5%
Capital grants and
contributions
17%
Property taxes
51%
Other taxes
7%
Other1%
Revenues by Source - Governmental Activities
-
5
10
15
20
Generalgovernment Public safety Public works Parks Interest onlong-term
debt
Millions
Expenses and Program Revenues - Governmental
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
17
Business-type Activities
Business-type activities increased net position by $6,878,408, accounting for 50% of the City's growth
in net position. Key elements of the current year increase before the change in accounting principle
are as follows:
The utility fund had income before transfers of $4,661,858 for 2015. This additional equity is
used to invest in new and rebuilt utility infrastructure according to the City’s CIP and utility
rate study.
The liquor fund had income before transfer of $653,384 for 2015. This additional equity is
used to subsidize operations at other enterprise facilities.
Charges for
services
99%
Operating grants
and
contributions
1%
Revenues by Source - Business-type Activities
-
2
4
6
8
10
12
14
16
18
20
Utilities Liquor Aquatic
center
Golf course Arena Community
activity
centers
Millions
Expenses and Program Revenues - Business-type
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
18
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $44,539,728, a decrease of $5,497,051 in comparison with the prior year. Approximately
27% of this total amount ($11,825,799) constitutes unassigned fund balance. The remainder of the
fund balance is 1) nonspendable due to prepaid items ($529,513), 2) restricted by external creditors,
grantors, laws or regulations ($17,509,137), or 3) assigned by internal constraints ($14,675,279).
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 $11,825,799. As a measure of the general fund’s
liquidity, unassigned fund balance represents 34% of total general fund expenditures.
The fund balance of the City’s general fund increased by $326,646 during the current fiscal year. Key
factors in this increase are as follows:
Total general fund revenues were $2,552,762 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 7.5% in the
current fiscal year after an 8.9% and 31.8% increase in 2014 and 2013, respectively.
Total general fund expenditures were $387,278 under budget. The majority of this occurred in
the police and engineering departments as a result of turnover and various positions being
vacant throughout the year.
The liquor fund did not transfer $765,100 of profits to the general fund as planned in the initial
2015 budget, due to increased competition in the market resulting in decreased profits.
Transfers out of the general fund totaled $1,848,294 with the majority related to the 2014
unassigned fund balance and parkland dedication fees transferred to fund various
construction projects.
The Housing and Redevelopment Authority fund balance increased by $91,962 in the current fiscal
year due to less capital outlay spending than anticipated. Discussions were held regarding various
redevelopment projects, and increased capital outlay spending anticipated for future years.
The debt service fund has a total fund balance of $7,134,575, 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 $5,543,716. Fund balance decreased as the result of the general obligation refunding bond,
series 2014B that was issued in 2014 in the amount of $12,720,000 and refunded $6,700,000 of debt
service fund bonds in February 2015.
The construction fund balance increased by $523,826 in 2015 due to increased state maintenance
aid received for various projects, an increased tax levy for the City’s equipment replacement program,
and debt issued in 2015 for the 50th and France parking project, with the majority of the expenditures
incurred in 2014.
Management’s Discussion and Analysis (Continued)
19
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net position of the utility fund at the end of the year amounted to $13,833,202. The total
growth in net position from current year operations was $4,477,382. Operating revenues in the
utilities fund increased by 10.2% while expenses increased by 7.0% in 2015. Revenues increased
due to an increase in the water and sewer connection fees. Expenses increased as a result of higher
depreciation expenses related to infrastructure projects completed in recent years, along with
increased fees set by the Metropolitan Council for sewer service. The City invested $11,977,234 in
utility fund capital assets during 2015.
Unrestricted net position of the liquor fund at the end of the year amounted to $501,987. Total net
position decreased by $131,616 from current year operations. The liquor fund continues to transfer
profits back into other City funds, including the construction, golf course, arena and art center funds.
The liquor fund made transfers totaling $785,000 to other funds during 2015.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $541,416.
Aquatic center revenues increased by 5.8% from 2014 due to more favorable weather in 2015. The
aquatic center remains profitable.
Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of
($173,427) a decrease of $780,838 from the prior year. $535,523 of the decrease is a direct result of
the new pension accounting standard implemented in 2015. The standard requires enterprise funds
to recognize a net pension liability equal to their share of the unfunded liability of the plan as
determined by the Public Employee Retirement Association (PERA). In addition, the golf course fund
contributed land and buildings totaling $1,008,330 from the now closed Fred Richards golf course to
the general fund, and the golf course fund recorded an accounting charge of $480,683.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($353,007),
a decrease of $311,595 from the prior year. The decrease in 2015 is in large part the result of
recognizing a new net pension liability of $417,141 related to the aforementioned accounting
standard. Overall, arena revenues increased by $216,300 or 10.3% due to increased building rental
revenue, and expenses increased by $270,325 or 12.1% due mostly to increased personal service
expenses.
General Fund Budgetary Highlights
During the year there was a $2,613,394 increase in appropriations between the original and final
amended budget. The majority of the increase was transfers to the construction fund of unassigned
general fund balance according to the City’s fund balance policy along with parkland dedication fees
transferred for new park signage and the completion of the promenade project.
During the year, revenues were $2,552,762 more than budget, as the continued commercial and
residential redevelopment of the City increased our licenses and permits and parkland dedication
revenues, which exceeded budget by $1,797,554.
During the year, expenditures were $387,278 under budget due to turnover of employees in various
departments, resulting in numerous positions being vacant throughout the year.
Management’s Discussion and Analysis (Continued)
20
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business type
activities as of December 31, 2015, amounted to $282,555,969 (net of accumulated depreciation).
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 7.4% (a 7.1% increase for governmental activities and a 7.8%
increase for business-type activities).
Major capital asset events during the current fiscal year included the following:
The City continued construction on the sports dome; $5,674,952 of the project was
capitalized and construction in progress as of the close of the fiscal year is $3,347,572.
The City continued construction on the outdoor rink at the arena; $2,089,228 of the project
was capitalized and construction in progress as of the close of the fiscal year is $1,084,226.
A variety of street construction, sidewalk and park projects; construction in progress as of the
close of the fiscal year reached $21,353,521.
A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer, construction in progress as of the close of the fiscal year reached $12,105,636.
The City completed the Hawkes and Morningside neighborhoods utility and street
reconstruction projects; total construction cost was $3,575,393.
City of Edina’s Capital Assets
(Net of Depreciation)
2015 2014 2015 2014 2015 2014
Land and land
improvements 27,379,588$ 27,104,500$ 3,230,890$ 4,645,595$ 30,610,478$ 31,750,095$
Easements 253,000 111,000 - - 253,000 111,000
Buildings and structures 43,816,890 45,431,238 20,150,029 14,234,412 63,966,919 59,665,650
Machinery and equipment 5,906,091 6,256,555 6,578,366 5,906,900 12,484,457 12,163,455
Infrastructure 51,625,947 45,685,016 74,783,668 73,845,503 126,409,615 119,530,519
Parks 8,260,392 6,868,402 - - 8,260,392 6,868,402
Construction in progress 21,353,521 16,623,018 19,217,587 16,365,190 40,571,108 32,988,208
Total 158,595,429$ 148,079,729$ 123,960,540$ 114,997,600$ 282,555,969$ 263,077,329$
Governmental Activities Business-Type Activities Totals
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 City had total bonded long-term debt
outstanding of $111,089,595, a decrease of $6,021,375 from 2014. This decrease resulted from
$19,905,000 in new debt, offset by payment of previously scheduled principal payments and
$20,585,000 in debt refunded.
$26,710,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount decreased from 2014 due to previously scheduled principal
payments and a refunding, along with no debt issuances in 2015.
$23,905,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount increased from 2014 due to regularly scheduled principal
payments and a refunding on outstanding issues offset by newly issued debt of $9,040,000.
Management’s Discussion and Analysis (Continued)
21
Also outstanding is $21,290,000 HRA public project revenue bonds which financed two gymnasiums,
the new public works facility, sports dome, outdoor rink at the arena, and improvements to Pamela
Park. This amount decreased in 2015 due to an issuance of new refunding debt that refunded the
debt related to the two gymnasiums.
There is a total of $39,145,000 in revenue bonds for improvements to the enterprise funds. This
amount decreased $5,275,000 during the year due to $7,375,000 in issued debt offset by $2,525,000
in regularly scheduled principal payments and $10,125,000 in refunding on outstanding issues. The
debt was refunded with proceeds from the General Obligation refunding bond, series 2014B.
$5,235,000 of the issued debt is to finance various utility infrastructure improvement projects with the
remaining issuance funding renovations at the golf course.
City of Edina’s Outstanding Debt
2015 2014 2015 2014 2015 2014
General obligation bonds 26,710,000$ 30,200,000$ -$ -$ 26,710,000$ 30,200,000$
Public improvement bonds 23,905,000 20,880,000 - - 23,905,000 20,880,000
Public project revenue bonds 21,290,000 21,560,000 - - 21,290,000 21,560,000
Edina emerald energy program bonds 39,595 50,970 - - 39,595 50,970
Revenue bonds - - 39,145,000 44,420,000 39,145,000 44,420,000
Total 71,944,595$ 72,690,970$ 39,145,000$ 44,420,000$ 111,089,595$ 117,110,970$
Governmental Activities Business-Type Activities Totals
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 $291,050,307. Only $48,000,000 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 4.
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 for December 2015 was 2.82%, well 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 ninety-four
percent pursuing some sort of post-secondary education.
Management’s Discussion and Analysis (Continued)
22
Property values in Edina increased for several years through 2008, but values declined from 2009-
2012 and are back on the rise in 2013-2015. Estimated market value of real estate increased 5.9%
for taxes payable in 2016.
-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
The City collects property taxes based on tax capacity, which roughly equals estimated market value
multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are
set by state statute. Tax capacity for real estate increased 6.6% for taxes payable in 2016, and
remained positive for the third consecutive year.
All of these factors above were considered in preparing the City’s budget for the 2016 fiscal year. The
City’s adopted 2016 budget includes a property tax levy of $31,799,123 for all funds, an increase of
7.1% from the 2015 levy, with the increase being attributed to the general operating levy to cover
increased market costs, and reducing the City’s reliance on a liquor transfer into the general fund.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2015
Governmental Business-type
Activities Activities Total
Assets:
Current assets:
Cash and investments 46,109,056$ 17,275,250$ 63,384,306$
Restricted cash and investments 583,966 1,224,114 1,808,080
Accrued interest 83,728 39,136 122,864
Accounts receivable, net 1,115,202 4,112,196 5,227,398
Special assessments receivable 17,679,866 549,253 18,229,119
Due from other governments 924,579 43,223 967,802
Prepaid items 529,513 495,341 1,024,854
Inventory - 1,268,542 1,268,542
Total current assets 67,025,910 25,007,055 92,032,965
Noncurrent assets:
Investment in joint powers agreement 1,584,465 - 1,584,465
Nondepreciable capital assets 42,600,554 19,502,928 62,103,482
Depreciable capital assets (net) 115,994,875 104,457,612 220,452,487
Total noncurrent assets 160,179,894 123,960,540 284,140,434
Deferred outflows of resources:
Defined benefit pension plans 3,643,551 571,368 4,214,919
Total assets and deferred
outflows of resources 230,849,355 149,538,963 380,388,318
Liabilities:
Current liabilities:
Accounts payable 2,022,617 706,863 2,729,480
Salaries payable 514,659 120,987 635,646
Accrued interest payable 976,643 470,378 1,447,021
Contracts payable 910,454 1,158,645 2,069,099
Due to other governments 21,804 170,969 192,773
Deposits payable 1,107,203 5,000 1,112,203
Unearned revenue 2,005 99,957 101,962
Compensated absences payable 1,547,398 343,364 1,890,762
Bonds payable 5,235,000 5,300,000 10,535,000
Total current liabilities 12,337,783 8,376,163 20,713,946
Noncurrent liabilities:
Net OPEB obligation 1,736,418 192,756 1,929,174
Net pension liability 18,902,697 4,032,363 22,935,060
Compensated absences payable 2,321,096 515,050 2,836,146
Bonds payable, net 68,105,777 35,330,215 103,435,992
Total noncurrent liabilities 91,065,988 40,070,384 131,136,372
Deferred inflows of resources:
Defined benefit pension plans 2,723,965 497,553 3,221,518
Total liabilities and deferred
inflows of resources 106,127,736 48,944,100 155,071,836
Net position:
Net investment in capital assets 85,838,618 83,395,794 169,234,412
Restricted for tax increments 8,021,960 - 8,021,960
Restricted for debt service 6,773,070 793,664 7,566,734
Restricted for pedestrian and cyclist improvements 713,168 - 713,168
Restricted for energy efficiency projects 328,671 - 328,671
Restricted for parkland dedication 417,673 - 417,673
Restricted for police special revenue 525,653 - 525,653
Restricted for braemar golf donations 142,228 - 142,228
Restricted for arts and culture donations 2,748 - 2,748
Unrestricted 21,957,830 16,405,405 38,363,235
Total net position 124,721,619$ 100,594,863$ 225,316,482$
Primary Government
The accompanying notes are an integral part of these financial statements
23
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2015
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental activities:
General government 8,518,236$ 1,322,430$ 1,514,564$ 77,750$
Public safety 19,507,770 8,683,465 1,342,373 42,461
Public works 15,284,777 537,325 261,297 9,061,215
Parks 3,385,367 620,882 3,944 862,651
Interest on long-term debt 2,180,678 - - -
Total government activities 48,876,828 11,164,102 3,122,178 10,044,077
Business-type activities:
Utilities 14,963,304 19,335,443 210,173 -
Liquor 11,818,602 12,462,387 6,321 -
Aquatic center 872,960 971,936 - -
Golf course 3,409,343 2,857,190 48,131 -
Arena 2,642,097 2,316,853 56,170 -
Community activity centers 3,436,325 3,119,789 274,346 -
Total business-type activities 37,142,631 41,063,598 595,141 -
Total primary government 86,019,459$ 52,227,700$ 3,717,319$ 10,044,077$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
Governmental Business-type
Activities Activities Total
(5,603,492)$ -$ (5,603,492)$
(9,439,471) - (9,439,471)
(5,424,940) - (5,424,940)
(1,897,890) - (1,897,890)
(2,180,678) - (2,180,678)
(24,546,471) - (24,546,471)
- 4,582,312 4,582,312
- 650,106 650,106
- 98,976 98,976
- (504,022) (504,022)
- (269,074) (269,074)
- (42,190) (42,190)
- 4,516,108 4,516,108
(24,546,471) 4,516,108 (20,030,363)
General revenues:
Property taxes 29,632,072 - 29,632,072
Tax increment collections 1,792,896 - 1,792,896
Franchise taxes 2,089,038 - 2,089,038
Lodging taxes 22,716 - 22,716
Unrestricted investment earnings 195,620 91,907 287,527
Gain on disposal of capital assets 41,900 39,427 81,327
Transfers (2,230,966) 2,230,966 -
Total general revenues and transfers 31,543,276 2,362,300 33,905,576
Change in net position 6,996,805 6,878,408 13,875,213
Net position - beginning as previously reported 135,293,443 97,598,993 232,892,436
Change in accounting principle (17,568,629) (3,882,538) (21,451,167)
Net position - beginning as restated 117,724,814 93,716,455 211,441,269
Net position - ending 124,721,619$ 100,594,863$ 225,316,482$
Net (Expense) Revenue and
Changes in Net Position
25
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2015
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Assets
Cash and Investments 15,206,793$ 8,024,689$ 6,752,650$ 14,637,659$ 1,432,704$ 46,054,495$
Restricted cash and
investments - - 361,505 222,461 - 583,966
Accrued interest 31,168 20,443 - 27,455 4,587 83,653
Accounts receivable 505,644 44,308 - 273,133 292,117 1,115,202
Special assessments
receivable - - 2,719,711 14,960,155 - 17,679,866
Due from other governments 534,679 3,411 32,619 216,303 137,567 924,579
Prepaid items 529,513 - - - - 529,513
Total assets 16,807,797$ 8,092,851$ 9,866,485$ 30,337,166$ 1,866,975$ 66,971,274$
Liabilities
Accounts payable 693,127$ 69,007$ 5,267$ 1,119,761$ 135,455$ 2,022,617$
Salaries payable 508,279 1,884 - 2,788 1,708 514,659
Contracts payable - - - 893,201 17,253 910,454
Due to other governments 21,738 - - 66 - 21,804
Deposits payable 1,107,203 - - - - 1,107,203
Unearned revenue 2,005 - - - - 2,005
Total liabilities 2,332,352 70,891 5,267 2,015,816 154,416 4,578,742
Deferred inflows of resources
Unavailable revenue - taxes 155,062 - 6,932 10,853 91 172,938
Unavailable revenue -
special assessments - - 2,719,711 14,960,155 - 17,679,866
Total deferred inflows of
resources 155,062 - 2,726,643 14,971,008 91 17,852,804
Fund balance:
Nonspendable 529,513 - - - - 529,513
Restricted 417,673 8,021,960 7,134,575 222,461 1,712,468 17,509,137
Assigned 1,547,398 - - 13,127,881 - 14,675,279
Unassigned 11,825,799 - - - - 11,825,799
Total fund balance 14,320,383 8,021,960 7,134,575 13,350,342 1,712,468 44,539,728
Total liabilities, deferred
inflows of resources,
and fund balances 16,807,797$ 8,092,851$ 9,866,485$ 30,337,166$ 1,866,975$ 66,971,274$
The accompanying notes are an integral part of these financial statements.
26
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2015
Total fund balances - governmental funds 44,539,728$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Cost of capital assets 274,418,431
Accumulated depreciation (115,823,002)
Bonds payable (71,944,595)
Premium on bonds (1,829,890)
Discount on bonds 433,708
Compensated absences payable (3,868,494)
Net OPEB obligation (1,736,418)
Net pension obligation (18,902,697)
(976,643)
1,584,465
Deferred outflows - pension plans 3,643,551
Deferred inflows - pension plans (2,723,965)
Deferred inflows - property taxes 172,938
Deferred inflows - special assessments 17,679,866
54,636
Total net position - governmental activities 124,721,619$
The accompanying notes are an integral part of these financial statements.
The recognition of certain revenues and expenditures differ between the full accrual governmental
activities financial statements and the modified accrual governmental fund financial statements.
Capital assets are included in net position, but are excluded from fund balances because they do not
represent financial resources.
Long-term liabilities are included in net positon, but are excluded from fund balances until due and
payable. Debt issuance premiums and discounts are excluded from net position until amortized, but are
included in fund balances upon issuance as other financing sources and uses
Accrued interest payable on long-term debt is included in net position, but is excluded from fund
balances until due and payable.
Investment in joint powers agreement are not available to pay for current-period expenditures, and
therefore, are not reported in the funds.
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The assets and liabilities of the internal service fund are included in the governmental activities
in the Statement of Net Position.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2015
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Revenues:
General property taxes 22,822,441$ -$ 5,085,348$ 1,607,481$ 20,000$ 29,535,270$
Tax increment collections - 1,792,896 - - - 1,792,896
Franchise taxes 833,229 - - 101,275 1,154,534 2,089,038
Lodging tax 22,716 - - - - 22,716
Special assessments - - 47,491 4,084,637 - 4,132,128
License and permits 4,827,634 - - 79,730 - 4,907,364
Intergovernmental 1,477,694 - - 4,430,191 186,081 6,093,966
Charges for services 4,226,690 44,308 - 143,993 - 4,414,991
Fines and forfeitures 1,033,116 - - - 162,155 1,195,271
Investment income 78,713 27,564 945 81,274 6,818 195,314
Rental of property 416,522 - - - - 416,522
Parkland dedication 800,000 - - - - 800,000
Other revenues 69,139 - - 236,469 55,817 361,425
Total revenues 36,607,894 1,864,768 5,133,784 10,765,050 1,585,405 55,956,901
Expenditures:
Current:
General government 5,771,748 426,716 - 42,090 97,390 6,337,944
Public safety 17,314,312 - - 16,635 206,581 17,537,528
Public works 9,981,474 - - 425,376 171,622 10,578,472
Parks 1,365,420 - - 9,895 41,543 1,416,858
Capital outlay:
General government - 678,039 - 1,791,833 - 2,469,872
Public safety - - - 1,401,325 196,467 1,597,792
Public works - 668,051 - 11,381,431 1,510,402 13,559,884
Parks - - - 2,285,017 - 2,285,017
Debt service:
Bond principal - - 13,276,375 - - 13,276,375
Interest and fiscal charges - - 2,375,613 - - 2,375,613
Total expenditures 34,432,954 1,772,806 15,651,988 17,353,602 2,224,005 71,435,355
Revenues over
(under) expenditures 2,174,940 91,962 (10,518,204) (6,588,552) (638,600) (15,478,454)
Other financing sources (uses):
Transfers in - - 1,000,000 2,232,770 - 3,232,770
Transfers out (1,848,294) - - (4,366,603) (257,169) (6,472,066)
Sale of capital assets - - - 78,509 - 78,509
Insurance recovery - - - 167,167 - 167,167
Bonds issued - - 361,315 8,678,685 - 9,040,000
Refunding bonds issued - - 3,490,000 - - 3,490,000
Premium on bonds issued - - 150,346 342,492 - 492,838
Discount on bonds issued - - (27,173) (20,642) - (47,815)
Total other financing
sources (uses) (1,848,294) - 4,974,488 7,112,378 (257,169) 9,981,403
Net increase (decrease)
in fund balance 326,646 91,962 (5,543,716) 523,826 (895,769) (5,497,051)
Fund balance - January 1 13,993,737 7,929,998 12,678,291 12,826,516 2,608,237 50,036,779
Fund balance - December 31 14,320,383$ 8,021,960$ 7,134,575$ 13,350,342$ 1,712,468$ 44,539,728$
The accompanying notes are an integral part of these financial statements.
28
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2015
Total net change in fund balances - governmental funds (5,497,051)$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays 17,246,834
Contributed assets 1,008,330
Depreciation expense (7,535,688)
(203,776)
2,051,162
(12,530,000)
13,276,375
(19,932)
(230,156)
Net pension liability (374,175)
Net OPEB obiligation (191,471)
Compensated absences payable (17,976)
Deferred outflows - pension plans 2,683,658
Deferred inflows - pension plans (2,723,965)
54,636
Change in net position - governmental activities 6,996,805$
The accompanying notes are an integral part of these financial statements.
Capital assets are recorded in net position and the cost is allocated over their estimated useful lives as
depreciation expense. However, fund balances are reduced for the full cost of capital outlays at the
time of purchase.
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The change in net position of the internal service funds is included in the governmental activities
in the Statement of Activities.
A gain or loss on the disposal of capital assets, including the difference between the carrying value and
any related sale proceeds, is included in the change in net position. However, only the sale proceeds and
insurance recoveries are included in the change fund balances.
Revenues in the statement of activities that do not provide current financial resources (property tax
and special assessment receivables) are not reported as revenues in the funds.
The amount of debt issued is reported in the governmental funds as a source of financing. Debt
obligations are not revenues in the Statement of Activities, but rather constitute long-term liabilities.
Certain expenses are included in the change in net position, but do not require the use of current
funds, and are not included in the change in fund balances.
The recognition of certain revenues and expenditures differ between the full accural governmental
activities financial statements and the modified accrual governmental fund financial statements.
Repayment of long-term debt does not affect the change in net position. However, it reduces fund
balances.
Debt issuance premiums and discounts are included in the change in net position as they are
amortized over the life of the debt. However, they are included in the change in fund balances upon
issuance as other financing sources and uses.
Interest on long-term debt is included in the change in net position as it accrues, regardless of when
payment is due. However, they are included in the change in fund balances when due.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2015
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Assets:
Current assets:
Cash and investments 10,917,561$ 1,111,572$ 1,248,239$ 702,283$ -$ 3,295,595$ 17,275,250$ 54,561$
Restricted cash and investments 459,675 - - 764,439 - - 1,224,114 -
Interest receivable 24,217 2,603 3,137 1,772 - 7,407 39,136 75
Accounts receivable, net 3,672,353 - 4,676 2,855 278,407 153,905 4,112,196 -
Special assessments receivable 549,253 - - - - - 549,253 -
Due from other funds - - - - - 7,103 7,103 -
Due from other governments 43,223 - - - - - 43,223 -
Prepaid expenses 412,866 - 82,475 - - - 495,341 -
Inventory 19,336 1,156,845 - 83,710 - 8,651 1,268,542 -
Total current assets 16,098,484 2,271,020 1,338,527 1,555,059 278,407 3,472,661 25,014,158 54,636
Noncurrent assets:
Net capital assets 91,710,823 1,726,898 1,856,113 7,785,699 10,370,902 10,510,105 123,960,540 -
Deferred outlflows of resources:
Defined benefit pension plans 137,916 137,917 - 78,809 59,107 157,619 571,368 -
Total assets and deferred
outflows of resources 107,947,223 4,135,835 3,194,640 9,419,567 10,708,416 14,140,385 149,546,066 54,636
Liabilities:
Current liabilities:
Accounts payable 237,569 273,681 997 24,772 50,946 118,898 706,863 -
Salaries payable 27,526 26,634 - 17,144 23,483 26,200 120,987 -
Accrued interest payable 370,397 - 2,450 41,365 56,166 - 470,378 -
Contracts payable 310,893 108,774 - 131,532 139,835 467,611 1,158,645 -
Due to other funds - - - - 7,103 - 7,103 -
Due to other governments 6,983 139,789 - 3,967 8,282 11,948 170,969 -
Deposits payable - - - 5,000 - - 5,000 -
Unearned revenue - 10,356 - 79,889 317 9,395 99,957 -
Compensated absences payable 62,243 131,352 - 79,700 21,504 48,565 343,364 -
Bonds payable - current 4,925,000 - 80,000 65,000 230,000 - 5,300,000 -
Total current liabilities 5,940,611 690,586 83,447 448,369 537,636 682,617 8,383,266 -
Noncurrent liabilities:
Net OPEB obligation 52,011 34,682 - 46,653 21,851 37,559 192,756 -
Net pension liability 973,329 973,329 - 556,188 417,141 1,112,376 4,032,363 -
Compensated absences payable 93,366 197,028 - 119,550 32,257 72,849 515,050 -
Bonds payable, net of
unamortized discounts and premiums 27,650,397 - 85,539 3,179,202 4,415,077 - 35,330,215 -
Total noncurrent liabilities 28,769,103 1,205,039 85,539 3,901,593 4,886,326 1,222,784 40,070,384 -
Deferred inflows of resources:
Defined benefit pension plans 120,099 120,099 - 68,628 51,471 137,256 497,553 -
Total liabilities and deferred
inflows of resources 34,829,813 2,015,724 168,986 4,418,590 5,475,433 2,042,657 48,951,203 -
Net position (deficit):
Net investment in capital assets 59,284,208 1,618,124 1,690,574 5,174,404 5,585,990 10,042,494 83,395,794 -
Restricted for debt service - - 793,664 - - - 793,664 -
Unrestricted 13,833,202 501,987 541,416 (173,427) (353,007) 2,055,234 16,405,405 54,636
Total net position 73,117,410$ 2,120,111$ 3,025,654$ 5,000,977$ 5,232,983$ 12,097,728$ 100,594,863$ 54,636$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
30
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Operating revenues:
Sales - liquor -$ 12,214,580$ -$ 103,784$ -$ -$ 12,318,364$ -$
Sales - retail - 247,807 4,701 214,288 61,919 46,175 574,890 -
Sales - utilities 17,860,895 - - - - - 17,860,895 -
Sales - concessions - - 120,047 37,705 293,733 154,248 605,733 -
Memberships - - 387,731 83,296 242 111,236 582,505 -
Admissions - - 406,488 308,174 107,336 642,349 1,464,347 -
Building rental - - 52,969 88,215 1,709,764 813,480 2,664,428 -
Rental of equipment - - - 363,013 4,312 172,633 539,958 -
Greens fees - - - 1,498,474 - 221,618 1,720,092 -
Other fees 1,473,128 - - 160,241 130,679 958,050 2,722,098 -
Total operating revenues 19,334,023 12,462,387 971,936 2,857,190 2,307,985 3,119,789 41,053,310 -
Operating expenses:
Cost of sales and services - 9,415,449 39,162 207,006 122,264 90,024 9,873,905 -
Personal services 1,692,682 1,450,762 332,310 1,255,665 863,398 1,752,912 7,347,729 -
Contractual services 7,137,023 531,059 172,126 481,138 804,739 722,758 9,848,843 -
Commodities 859,512 85,922 56,605 238,794 136,765 331,856 1,709,454 -
Central Services 685,750 232,690 26,929 128,895 57,624 136,318 1,268,206 -
Depreciation 4,012,165 102,720 241,407 571,105 522,206 402,457 5,852,060 -
Total operating expenses 14,387,132 11,818,602 868,539 2,882,603 2,506,996 3,436,325 35,900,197 -
Operating income (loss)4,946,891 643,785 103,397 (25,413) (199,011) (316,536) 5,153,113 -
Nonoperating revenues (expenses):
Intergovernmental 210,173 - - - - 250,000 460,173 -
Investment income 55,619 3,278 8,004 6,307 - 18,699 91,907 306
Donations - - - - 56,170 23,400 79,570 -
Interest and fiscal charges (847,003) - (4,961) (61,011) (135,085) - (1,048,060) -
Amortization of bond premiums
(discounts) 270,831 - 540 1,368 (16) - 272,723 -
Gain (loss) on sale of capital assets 23,927 - - (467,097) 15,500 - (427,670) -
Assets contributed to governmental
funds - - - (1,008,330) - - (1,008,330) -
Miscellaneous 1,420 6,321 - 48,131 8,868 946 65,686 54,330
Total nonoperating
revenues (expenses)(285,033) 9,599 3,583 (1,480,632) (54,563) 293,045 (1,514,001) 54,636
Income (loss) before transfers 4,661,858 653,384 106,980 (1,506,045) (253,574) (23,491) 3,639,112 54,636
Transfers:
Transfers in - - - 441,871 1,245,070 2,521,831 4,208,772 -
Transfers out (184,476) (785,000) - - - - (969,476) -
Total transfers (184,476) (785,000) - 441,871 1,245,070 2,521,831 3,239,296 -
Change in net position 4,477,382 (131,616) 106,980 (1,064,174) 991,496 2,498,340 6,878,408 54,636
Net position - January 1
as previously reported 69,577,192 3,188,891 2,918,674 6,600,674 4,643,129 10,670,433 97,598,993 -
Change in accounting principle (937,164) (937,164) - (535,523) (401,642) (1,071,045) (3,882,538) -
Net position - January 1 as restated 68,640,028 2,251,727 2,918,674 6,065,151 4,241,487 9,599,388 93,716,455 -
Net position - December 31 73,117,410$ 2,120,111$ 3,025,654$ 5,000,977$ 5,232,983$ 12,097,728$100,594,863$ 54,636$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
31
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Cash flows from operating activities:
Receipts from customers and users 19,271,659$ 12,462,734$ 967,260$ 2,860,294$ 2,265,737$ 3,021,011$ 40,848,695$ -$
Payment to suppliers (8,642,719) (10,079,898) (300,020) (1,048,438) (1,158,385) (1,232,988) (22,462,448) -
Payment to employees (1,732,292) (1,469,655) (332,310) (1,249,885) (880,967) (1,805,321) (7,470,430) -
Donations received - - - - 56,170 23,400 79,570 -
Miscellaneous received 1,420 6,321 - 48,131 8,868 946 65,686 54,330
Net cash provided by
(used in) operating activities 8,898,068 919,502 334,930 610,102 291,423 7,048 11,061,073 54,330
Cash flows from noncapital financing activities:
State grant 210,173 - - - - 250,000 460,173 -
Transfer from other funds - - - 441,871 1,245,070 2,521,831 4,208,772 -
Transfer to other funds (184,476) (785,000) - - - - (969,476) -
Proceeds from interfund borrowing - - - - 7,103 22,718 29,821 -
Payment of interfund borrowing - - - - - (29,821) (29,821) -
Net cash provided by (used in)
noncapital financing activities 25,697 (785,000) - 441,871 1,252,173 2,764,728 3,699,469 -
Cash flows from capital and related financing activities:
Proceeds from capital debt 5,513,451 - - 2,158,128 - - 7,671,579 -
Acquisition of capital assets (11,977,234) (95,205) (19,454) (2,587,994) (1,198,671) (2,355,336) (18,233,894) -
Proceeds from disposals
of capital assets 102,610 - - 18,000 15,500 - 136,110 -
Principal paid on bonds (12,300,000) - (75,000) (50,000) (225,000) - (12,650,000) -
Interest and fiscal charges paid on bonds (882,427) - (6,075) (34,215) (136,517) - (1,059,234) -
Net cash provided by (used in)
capital and related
financing activities (19,543,600) (95,205) (100,529) (496,081) (1,544,688) (2,355,336) (24,135,439) -
Cash flows from investing activities:
Interest received 51,251 3,964 6,999 5,185 - 16,415 83,814 231
Net increase (decrease)
in cash and investments (10,568,584) 43,261 241,400 561,077 (1,092) 432,855 (9,291,083) 54,561
Cash and investments -
January 1 21,945,820 1,068,311 1,006,839 905,645 1,092 2,862,740 27,790,447 -
Cash and investments -
December 31 11,377,236$ 1,111,572$ 1,248,239$ 1,466,722$ -$ 3,295,595$ 18,499,364$ 54,561$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Business-type Activities - Enterprise Funds
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 4,946,891$ 643,785$ 103,397$ (25,413)$ (199,011)$ (316,536)$ 5,153,113$ -$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 4,012,165 102,720 241,407 571,105 522,206 402,457 5,852,060 -
Donations - - - - 56,170 23,400 79,570 -
Miscellaneous revenue (expense) 1,420 6,321 - 48,131 8,868 946 65,686 54,330
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables 65,948 - (4,676) (2,815) (42,251) (98,338) (82,132) -
Decrease (increase) in
special assessments (87,975) - - - - - (87,975) -
Decrease (increase) in
due from other governments (40,337) - - - - - (40,337) -
Decrease (increase) in inventory (12,042) 36,209 - 11,054 - (391) 34,830 -
Decrease (increase) in
prepaid expenses (27,635) - (3,875) - - - (31,510) -
Decrease (increase) in deferred
outflows of resources (98,141) (98,142) - (56,081) (42,061) (112,163) (406,588) -
Increase (decrease) in
accounts payable 77,577 144,890 (1,013) (4,367) (35,488) 46,847 228,446 -
Increase (decrease) in
salaries payable (78,178) (59,861) - (25,481) (29,335) (56,433) (249,288) -
Increase (decrease) in
due to other governments 1,666 4,123 (310) 708 (1,505) 1,512 6,194 -
Increase (decrease) in
unearned revenue - 347 - 5,919 3 (440) 5,829 -
Increase (decrease) in
net OPEB obligation 3,747 3,481 - 4,159 2,026 4,518 17,931 -
Increase (decrease) in
net pension liability (3,610) (3,610) - (2,063) (1,547) (4,125) (14,955) -
Increase (decrease) in
compensated absences 16,473 19,140 - 16,618 1,877 (21,462) 32,646 -
Increase (decrease) in deferred
inflows of resources 120,099 120,099 - 68,628 51,471 137,256 497,553 -
Total adjustments 3,951,177 275,717 231,533 635,515 490,434 323,584 5,907,960 54,330
Net cash provided by
(used in) operating activities 8,898,068$ 919,502$ 334,930$ 610,102$ 291,423$ 7,048$ 11,061,073$ 54,330$
Noncash investing activities:
Increase (decrease) in
fair value of investments (26,869) (4,289) (2,948) (994) - (7,070) (42,170) (9)
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable 198,329 (62,335) 19,454 (108,712) 596,047 1,204,001 1,846,784 -
The accompanying notes are an integral part of these financial statements.
33
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2015
Agency Funds
Assets
Cash and investments 391,362$
Liabilities
Accounts payable 22,310$
Salaries payable 4,265
Due to other governmental units 364,787
Total liabilities 391,362$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
35
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 (generally accepted accounting principles) as
applied to governmental units by the Governmental Accounting Standards Board (GASB). The
following is a summary of significant accounting policies.
A. FINANCIAL REPORTING ENTITY
The City’s financial reporting entity consists of (a) the primary government, (b)
organizations for which the primary government is financially accountable, and (c) other
organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity’s financial
statements to be misleading or incomplete. The primary government is financially
accountable for the component unit if it appoints a voting majority of the component unit’s
governing body and is able to impose its will on the component unit or there is a potential
for the component unit to provide specific financial benefits to, or impose specific financial
burdens on, the primary government.
As required by generally accepted accounting principles, the financial statements of the
reporting entity include those of the City of Edina (the primary government) and its
component units. The component units discussed below are included in the City's
reporting entity because of the significance of their operational or financial relationships
with the City.
COMPONENT UNITS
In conformity with generally accepted accounting principles, the financial statements of
the component unit have been included in the financial reporting entity as a blended
component unit.
The Housing and Redevelopment Authority (HRA) is an entity legally separate from the
City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City’s operations for two reasons. First, the HRA’s governing body is substantively the
same as the governing body of the City. Specifically, the HRA board consists of five
members, all of which are City Council members. Second, management of the City has
operational responsibility for the HRA. Specifically, sales of bonds or other obligations of
the HRA are approved by the City Council; the HRA follows the budget process for City
departments in accordance with City policy; the annual HRA budget is approved by City
Council; the HRA submits its plan for development and redevelopment to the City Council
for approval; lastly, the administrative structure and management practices and policies
of the HRA are approved by the City Council. The activity of the HRA is reported in the
Special Revenue Funds. Separate financial statements are not prepared for the HRA.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
36
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the City.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or business-type activity are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or business-type activity.
Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or
business-type activity and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or business type activity.
Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements. Aggregated
information for the remaining nonmajor governmental and enterprise funds is reported in
a single column in the fund financial statements
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. The City’s only fiduciary fund type, agency funds, are
custodial in nature and do not have a 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 post-
employment benefits (OPEB), net pension liabilities, and claims and judgments are
recorded only when payment is due.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
37
Property taxes, special assessments, intergovernmental revenues, charges for services
and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other
revenue items are considered to be measurable and available only when cash is received
by the City.
The City reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The special revenue Housing and Redevelopment Authority fund is used to account
for revenues from several sources (property taxes, bond proceeds, investment
earnings, etc.) that are restricted for housing and redevelopment.
The debt service fund accounts for the payment of principal and interest on General
Obligation, Permanent Improvement Revolving, Public Project Revenue Bonds, and
Edina Emerald Energy Program Bonds.
The capital projects construction fund accounts for the various special assessment
and state aid projects throughout the City. This fund also provides financing for
capital improvements as restricted in the City’s capital improvement budget.
The City reports the following major proprietary funds:
The utility fund accounts for the provision of water, sewer and recycling services to
the City’s residents.
The liquor fund accounts for the operation of the City’s three liquor stores.
The aquatic center fund accounts for the operation of the City’s aquatic center.
The golf course fund accounts for the operation of the City’s two golf courses and a
golf dome.
The arena fund accounts for the operation of the City’s ice arena.
Additionally, the City reports the following fund types:
Internal service funds - the risk management internal service fund accounts for
worker’s compensation, volunteer accident, and property/casualty insurance. Internal
service funds operate in a manner similar to enterprise funds; however, they provide
services primarily to other departments within the City.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
38
Agency funds - the police seizure and Public Safety Training Facility funds account
for fees collected for other government agencies and the payroll fund accounts for
payroll deductions withheld from employee paychecks but not yet sent to the
appropriate party (includes federal and state taxes, health care deductions, etc).
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are transactions
that would be treated as revenues, expenditures or expenses if they involved external
organizations, such as buying goods and services or payments in lieu of taxes, are
similarly treated when they involve other funds of the City of Edina. Elimination of these
charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the City’s enterprise funds and internal service fund
are charges to customers for sales and services. Operating expenses for the enterprise
funds and internal service fund include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Aggregated information for the internal service fund is reported in a single column in the
proprietary fund financial statements. Because the principal user of the internal services
is the City’s governmental activities, the financial statements of the internal service funds
are consolidated into the governmental column when presented in the government-wide
financial statements. The cost of these services is reported in the appropriate functional
activity.
When both restricted and unrestricted resources are available for an allowable use, it is
the City’s policy to use restricted resources first, then unrestricted resources as they are
needed.
Depreciation expense is included in the direct expenses of each function. Interest on
long-term debt is considered an indirect expense and is reported separately on the
Statement of Activities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
39
D. CASH AND INVESTMENTS
Cash and Investments
The cash balances of the City and its component units fund 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 2a7-like 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.
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.
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.
E. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds
for goods provided or services rendered. Short-term interfund loans are classified as “due
to/from other funds.” All short-term interfund receivables and payables at December 31,
2015 are planned to be eliminated in 2016. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
40
F. REVENUE RECOGNITION
1. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in
December (levy/assessment date) of each year for collection in the following
year. The County is responsible for billing and collecting all property taxes for
itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and
October 15 of each calendar year. Personal property taxes are payable by
taxpayers on February 28 and June 30 of each year. These taxes are collected
by the County and remitted to the City on or before July 7 and December 2 of the
same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes
by property owners. The County possesses this authority.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were
levied. Uncollectible property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and
available to finance expenditures of the current period. In practice, current and
delinquent taxes and State credits received by the City in July, December and
January are recognized as revenue for the current year. Taxes collected by the
County by December 31 (remitted to the City the following January) and taxes
and credits not received at the year-end are classified as delinquent and due
from County taxes receivable. The portion of delinquent taxes not collected by
the City in January are fully offset by deferred inflows of resources because they
are not available to finance current expenditures.
2. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a
portion of the cost of special assessment improvement projects in accordance
with State Statutes. These assessments are collectible by the City over a term of
years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the
same manner as property taxes. Property owners are allowed to (and often do)
prepay future installments without interest or prepayment penalties.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
41
Once a special assessment roll is adopted, the amount attributed to each parcel
is a lien upon that property until full payment is made or the amount is
determined to be excessive by the City Council or court action. If special
assessments are allowed to go delinquent, the property is subject to tax forfeit
sale. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale
after three years unless it is homesteaded, agricultural or seasonal recreational
land in which event the property is subject to such sale after five years.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the
assessment roll was adopted by the City Council. Uncollectible special
assessments are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes
measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are
recognized as revenue for the current year. Special assessments that are
collected by the County by December 31 (remitted to the City the following
January) and are also recognized as revenue for the current year. All remaining
delinquent, deferred and special deferred assessments receivable in
governmental funds are completely offset by deferred inflows of resources. The
following is a breakdown of special assessments receivable at December 31,
2015:
Enterprise
Funds
Debt
Service Construction Utilities
Special assessments receivable
Delinquent $66,694 $0 $280,896
Deferred 2,653,017 14,960,155 268,357
Total $2,719,711 $14,960,155 $549,253
Governmental Funds
G. INVENTORIES AND PREPAID ITEMS
Inventories of the proprietary funds are stated at cost and are recorded as expenses
when consumed rather than when purchased. All inventories use the first-in/first-out
(FIFO) method.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements and
are recorded as expenses when consumed.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
42
H. CAPITAL ASSETS
Capital assets, which include property, buildings, improvements, equipment, parks,
infrastructure assets (roads, bridges, sidewalks, and similar items), and intangible assets
such as easements, are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are also
reported in the proprietary fund financial statements but not in the governmental fund
financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of
more than $10,000 (amount not rounded) and an estimated useful life in excess of three
years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market
value at the date of donation. The costs of normal maintenance and repairs that do not
add to the value of the asset or materially extend assets lives are not capitalized.
Infrastructure assets include all of the City’s assets since inception.
Property, plant and equipment of the primary government are depreciated using the
straight line method over the following estimated useful lives:
Assets Life
Golf course 10 - 35 years
Land improvements 15 - 50 years
Buildings and structures 15 - 40 years
Furniture and office equipment 5 - 10 years
Vehicles and equipment 3 - 20 years
Parks 5 - 100 years
Utility infrastructure 20 - 50 years
Capital assets that are not depreciated include land, easements, and construction in
progress.
I. 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 generally accepted
accounting principles no liability is recorded for nonvesting accumulating rights to receive
sick pay benefits. However, a liability is recognized for that portion of accumulating sick
leave benefits that is vested as severance pay. According to City policy, vested sick leave
benefits are liquidated into a health care savings plan upon separation.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
43
J. 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.
K. 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 straight-line 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.
L. 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 position 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 one item that qualifies for reporting in this
category. It is the deferred outflows of resources related to pensions reported in the
government-wide and enterprise funds Statement of Net Position. This deferred outflow
results from differences between expected and actual experience, changes of
assumptions, differences between projected and actual earnings on pension plan
investments, 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 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 position that applies to future periods
and so will not be recognized as an inflow of resources (revenue) until that time. The City
has two items which qualify for reporting in this category.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
44
The first item, unavailable revenue, is reported only in the governmental funds Balance
Sheet. The governmental funds report unavailable revenue from two sources: property
taxes and special assessments. These amounts are deferred and recognized as an
inflow of resources in the period the amounts become available.
The second item, deferred inflows of resources related to pensions, is reported in the
government-wide and enterprise fund Statement of Net Position. This deferred inflow
results from differences between expected and actual experience, changes of
assumptions, and the difference between projected and actual earnings on pension plan
investments. These amounts are deferred and amortized as required under pension
standards.
M. 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.
N. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
45
When both restricted and unrestricted resources are available for use, it is the City’s
policy to first use restricted resources, and then use unrestricted resources as they are
needed.
When committed, assigned, or unassigned resources are available for use, it is the City’s
policy to use resources in the following order: 1) committed, 2) assigned, and 3)
unassigned.
O. NET POSITION
In the government-wide 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.”
P. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates that affect amounts
reported in the financial statements during the reporting period. Actual results could differ
from such estimates.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
46
Q. CHANGE IN ACCOUNTING PRINCIPLES
During the year ended December 31, 2015, the City implemented GASB Statement No.
68, Accounting and Financial Reporting for Pensions—an amendment of GASB
Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date—an amendment of GASB Statement No.
68. These statements prescribe major changes in how employers account for pension
benefit expenses and liabilities. In financial statements prepared using the economic
resources measurement focus and accrual basis of accounting (government-wide and
proprietary fund financial statements), an employer is required to recognize a liability for
its share of the net pension liability provided through the pension plan. An employer is
also required to recognize pension expense and report deferred outflows of resources
and deferred inflows of resources for its share related to pensions. These standards
required retroactive implementation, which resulted in the restatement of net position as
of December 31, 2014. The net position in the government-wide financial statements as
of December 31, 2014 was decreased by $21,451,167. This change reflects the City’s
proportionate share of the net pension liabilities ($22,575,840 decrease in net position)
and related deferred outflows of resources ($1,124,673 increase in net position) for the
PERA pension plan, which are now reported by employers under current guidance.
Certain amounts necessary to fully restate fiscal year 2014 financial information are not
determinable; therefore, prior year comparative amounts have not been restated.
Note 2 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits 353,806$
Cash on hand 19,015
Investments 65,210,927
65,583,748$
Cash and investments are presented in the financial statements as follows:
Cash and investments - Statement of Net Position 63,384,306$
Restricted cash and investments - Statement of Net Position 1,808,080
Cash and investments - Statement of Fiduciary Net Position 391,362
65,583,748$
The City had restricted investments of $1,808,080 as of December 31, 2015 that
represent unspent bond proceeds to be used for construction projects and debt
payments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
47
B. DEPOSITS
In accordance with applicable Minnesota Statutes, the City maintains deposits at
depository banks authorized by the City Council, including checking accounts, savings
accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial credit risk – In the case of deposits, this is the risk that in the event of
a bank failure, the City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit
insurance, corporate surety bond, or collateral. The market value of collateral
pledged must equal 110% of the deposits not covered by federal deposit
insurance or corporate surety bonds. Authorized collateral includes treasury bills,
notes, and bonds; issues of U.S. government agencies; general obligations rated
“A” or better; revenue obligations rated “AA” or better; irrevocable standard
letters of credit issued by the Federal Home Loan Bank; and certificates of
deposit. Minnesota Statutes require that securities pledged as collateral be held
in safekeeping in a restricted account at the Federal Reserve Bank or in an
account at a trust department of a commercial bank or other financial institution
that is not owned or controlled by the financial institution furnishing the collateral.
The City’s investment policy does not contain further restrictions on the types of
collateral required.
At year-end, the carrying amount of the City’s deposits was $353,806 while the
balance on the bank records was $716,844. At December 31, 2015, all deposits
were fully covered by federal depository insurance, surety bonds, or by collateral
held by the City’s agent in the City’s name.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
48
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 6 to 10 > 10 Total
U.S. Treasuries AA+ S&P -$ -$ 516,475$ 776,299$ 1,292,774$
SBA Notes AA+ S&P 580 68,503 - - 69,083
SBA Notes N/R N/A - - 7,103 11,130 18,233
U.S. Agencies AA+ S&P 330,720 10,758,183 747,507 2,559,411 14,395,821
U.S. Agencies Aaa Mdy's - 329,784 232,192 - 561,976
Bankers Acceptance A1+ S&P 3,877,302 - - - 3,877,302
Commerical Paper A1+ S&P 8,409,108 - - - 8,409,108
Municipals AAA S&P - 139,888 31,226 - 171,114
Municipals AA+ S&P 60,177 1,746,316 - 1,645,000 3,451,493
Municipals Aa3 Mdy's 505,000 - - - 505,000
Municipals AA S&P 252,838 49,961 754,949 - 1,057,748
Municipals AA- S&P 34,955 293,363 - - 328,318
Municipals AA2 Mdy's - 247,865 - - 247,865
Negotiable CD's N/R N/A 14,203,902 9,357,722 - - 23,561,624
27,674,582$ 22,991,585$ 2,289,452$ 4,991,840$ 57,947,459
Money Market* AAAm S&P 462,855
Money Market* AA+ S&P 24,417
4M Fund* N/R N/A 6,776,196
Total investments 65,210,927$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments do not have maturities
Credit Risk
Investment
Interest Risk - Maturity Duration in Years
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota
Statutes and the Board of Directors of the League of Minnesota Cities. The 4M Fund is
an external investment pool not registered with the Securities Exchange Commission
(SEC) that follows the same regulatory rules of the SEC under rule 2a7. The City’s
investment in the 4M Fund is measured at the net asset value per share provided by the
pool, which is based on an amortized cost method that approximates fair value.
Investments are subject to various risks, the following of which are considered the most
significant:
Custodial credit risk – For investments, this is the risk that in the event of a
failure of the counterparty to an investment transaction (typically a broker-dealer)
the City would not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The City’s investment
policy specifically addresses custodial credit risk, requiring the City to limit its
exposure by purchasing insured or registered investments, or by the control of
who holds the securities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
49
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 $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 18.8% in bankers’ acceptances and commercial paper with U.S. Bank,
and 10.3% in securities issued by FNMA.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
50
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015 is as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land 20,190,409$ 803,624$ -$ 20,994,033$
Easements 111,000 142,000 - 253,000
Construction in progress 16,623,018 15,844,525 (11,114,022) 21,353,521
Total capital assets not being depreciated 36,924,427 16,790,149 (11,114,022) 42,600,554
Capital assets being depreciated:
Land improvements 22,966,330 179,277 - 23,145,607
Buildings and structures 63,799,864 204,706 - 64,004,570
Furniture and office equipment 4,008,251 186,055 (8,523) 4,185,783
Vehicles and equipment 15,636,160 1,201,172 (612,850) 16,224,482
Infrastructure 98,211,440 8,705,752 (527,972) 106,389,220
Parks 15,828,183 2,102,075 (62,043) 17,868,215
Total capital assets being depreciated 220,450,228 12,579,037 (1,211,388) 231,817,877
Less accumulated depreciation for:
Land improvements (16,052,239) (707,813) - (16,760,052)
Buildings and structures (18,368,626) (1,819,054) - (20,187,680)
Furniture and office equipment (2,769,388) (275,165) 8,523 (3,036,030)
Vehicles and equipment (10,618,468) (1,262,516) 412,840 (11,468,144)
Infrastructure (52,526,424) (2,764,821) 527,972 (54,763,273)
Parks (8,959,781) (706,319) 58,277 (9,607,823)
Total accumulated depreciation (109,294,926) (7,535,688) 1,007,612 (115,823,002)
Total capital assets being depreciated, net 111,155,302 5,043,349 (203,776) 115,994,875
Governmental activities capital assets, net 148,079,729$ 21,833,498$ (11,317,798)$ 158,595,429$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
51
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land 1,088,965$ -$ (803,624)$ 285,341$
Construction in progress 16,365,190 15,168,785 (12,316,388) 19,217,587
Total capital assets not being depreciated 17,454,155 15,168,785 (13,120,012) 19,502,928
Capital assets being depreciated:
Land improvements & golf course 9,819,284 185,129 (1,340,045) 8,664,368
Buildings and structures 27,337,511 7,327,893 (742,868) 33,922,536
Furniture and office equipment 153,303 - - 153,303
Vehicles and equipment 10,673,944 1,469,484 (402,837) 11,740,591
Utility infrastructure 114,481,228 4,552,208 - 119,033,436
Lease property capital lease 430,614 - - 430,614
Total capital assets being depreciated 162,895,884 13,534,714 (2,485,750) 173,944,848
Less accumulated depreciation for:
Land improvements & golf course (6,262,654) (315,526) 859,361 (5,718,819)
Buildings and structures (13,103,099) (1,207,570) 538,162 (13,772,507)
Furniture and office equipment (141,423) (4,830) - (146,253)
Vehicles and equipment (4,778,924) (710,091) 319,740 (5,169,275)
Utility infrastructure (40,635,725) (3,614,043) - (44,249,768)
Lease property capital lease (430,614) - - (430,614)
Total accumulated depreciation (65,352,439) (5,852,060) 1,717,263 (69,487,236)
Total capital assets being depreciated, net 97,543,445 7,682,654 (768,487) 104,457,612
Business-type activities capital assets, net 114,997,600$ 22,851,439$ (13,888,499)$ 123,960,540$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
52
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 481,297$
Public safety 1,074,179
Public works 4,003,581
Parks 1,976,631
Total depreciation expense - governmental activities 7,535,688$
Business-type activities:
Utilities 4,012,165$
Liquor 102,720
Aquatic Center 241,407
Golf Course 571,105
Arena 522,206
Sports Dome 162,302
Art Center 25,717
Edinborough Park 175,223
Centennial Lakes 39,215
Total depreciation expense - business-type activities 5,852,060$
CONSTRUCTION COMMITMENTS
At December 31, 2015, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
Contract Remaining
Project # Project Description Amount Commitment
13-10NB Eng Lake Edina Landscape 14,930$ 2,724$
14-8 Eng Promenade Water Feature 1,445,573 63,074
14-14 Eng France Ave Landscape Plan 579,979 71,478
15-1NB Eng Valley View Landscaping 36,542 5,441
15-3 Eng Glen View Neighborhood 8,421,439 444,268
15-5 Eng Hollands Neighborhood 1,492,807 68,577
15-13 Eng Interlachen Boulevard 376,015 73,069
NA Pamela Park Shelter and Turf 262,095 425
15-12 Eng Industrial Park Lighting 234,793 9,206
Various Braemar Golf Course 1,800,499 40,000
Various Braemar Arena 1,363,870 8,545
Various Braemar Field 1,756,265 2,976
789,783$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
53
Note 4 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2015: general obligation
bonds, permanent improvement revolving bonds, public project revenue bonds, Edina emerald
energy program revenue bonds and G.O. revenue bonds. The first type is payable from general
property taxes. The second type is payable solely from special assessments with any deficiency
to be provided for by general property taxes. The third 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 fourth type is payable solely from
special assessments. The fifth type is payable primarily from enterprise revenue with any
deficiency to be provided for by general property taxes. The reporting entity’s long-term debt is
segregated between the amounts to be repaid from governmental activities and amounts to be
repaid from business-type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2015, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2015
General Obligation Bonds:
General Obligation - Capital Improvement Plan, 2007A 4.00-4.25% 5/24/2007 2/1/2028 5,865,000$ 4,315,000$
General Obligation - Capital Improvement Plan, 2009A 3.00-4.40% 4/29/2009 2/1/2030 14,000,000 11,300,000
General Obligation - Capital Improvement Plan, 2010A 2.00-4.00% 11/18/2010 2/1/2021 8,285,000 4,860,000
General Obligation - Capital Improvement Plan, 2013A - Refunding 3.00-3.50% 10/10/2013 2/1/2030 5,710,000 5,130,000
General Obligation - 2014B - Refunding 3.00% 12/11/2014 2/1/2017 1,105,000 1,105,000
Total General Obligation Bonds 34,965,000 26,710,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2010B 2.00-3.00% 11/18/2010 2/1/2022 2,305,000 1,660,000
Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 2,715,000
Permanent Improvement Revolving, 2012A 3.00-4.00% 11/15/2012 2/1/2029 2,675,000 2,535,000
Permanent Improvement Revolving, 2012A - Refunding 3.00-4.00% 11/15/2012 2/1/2019 1,990,000 1,325,000
Permanent Improvement Revolving, 2013A 3.00-3.50% 10/10/2013 2/1/2030 2,555,000 2,555,000
Permanent Improvement Revolving, 2014B - Refunding 2.00-3.00% 12/11/2014 2/1/2020 4,075,000 4,075,000
Permanent Improvement Revolving, 2015A 2.00-4.00% 7/9/2015 2/1/2032 6,545,000 6,545,000
Permanent Improvement Revolving, 2015A - Parking 2.00-4.00% 7/9/2015 2/1/2036 2,495,000 2,495,000
Total PIR Bonds 25,960,000 23,905,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2009A 2.10-4.55% 11/24/2009 2/1/2030 2,595,000 1,645,000
Public Project Revenue, Series 2014A 2.00-3.625% 7/15/2014 2/1/2035 16,155,000 16,155,000
Public Project Revenue, Series 2015A - Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 3,490,000
Total Public Project Revenue Bonds 22,240,000 21,290,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A 7.00% 2/25/2012 1/1/2023 33,690 23,583
Edina Emerald Energy Program Bonds, 2012B 5.50% 8/28/2012 1/1/2018 40,030 16,012
Total EEEP Bonds 73,720 39,595
Total bonded indebtedness - governmental activities 83,238,720$ 71,944,595$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
54
BUSINESS-TYPE ACTIVITIES
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2015
Revenue Bonds:
Recreational Facility Bonds, Series 2009B 2.00-3.00% 4/29/2009 1/1/2017 2,010,000$ 165,000$
Recreational Facility Bonds, Series 2009C 2.00-4.00% 12/10/2009 2/1/2030 2,440,000 1,960,000
Recreational Facility Bonds, Series 2012B .45-1.60% 11/15/2012 2/1/2020 815,000 580,000
Recreational Facility Bonds, Series 2012C 2.00-3.00% 11/15/2012 2/1/2033 2,100,000 2,100,000
Recreational Facility Bonds, Series 2013B 3.00-3.45% 10/10/2013 2/1/2029 1,125,000 1,075,000
Recreational Facility Bonds, Series 2015B 2.00-3.25% 7/9/2015 2/1/2031 2,140,000 2,140,000
Utility Revenue Bonds, Series 2011A 2.00-3.00% 10/27/2011 2/1/2022 11,230,000 8,150,000
Utility Revenue Bonds, Series 2012A 3.00-4.00% 11/15/2012 2/1/2023 6,100,000 5,090,000
Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 5,110,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00% 12/11/2014 2/1/2017 1,830,000 1,830,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00% 12/11/2014 2/1/2019 5,710,000 5,710,000
Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 5,235,000
Total Revenue Bonds 46,415,000 39,145,000
Total bonded indebtedness - business-type activities 46,415,000$ 39,145,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2016 2,410,000$ 943,193$ 1,925,000$ 705,628$ 900,000$ 654,479$
2017 2,475,000 859,818 2,105,000 628,625 905,000 633,629
2018 1,990,000 782,343 2,480,000 562,538 1,045,000 607,198
2019 2,065,000 710,270 2,415,000 493,938 1,080,000 574,566
2020 2,145,000 634,400 2,250,000 433,975 1,115,000 540,690
2021-2025 7,980,000 2,206,856 5,925,000 1,534,913 6,100,000 2,178,700
2026-2030 7,645,000 744,451 4,825,000 732,707 5,145,000 1,269,158
2031-2035 - - 1,810,000 139,856 5,000,000 459,166
2036 - - 170,000 3,188 - -
Total 26,710,000$ 6,881,331$ 23,905,000$ 5,235,368$ 21,290,000$ 6,917,586$
Principal Interest Principal Interest
2016 -$ 2,870$ 5,300,000$ 1,045,523$
2017 11,375 2,193 5,540,000 889,583
2018 11,375 1,517 4,635,000 755,964
2019 3,369 1,061 4,775,000 633,318
2020 3,369 825 3,355,000 523,915
2021-2025 10,107 1,062 12,120,000 1,280,124
2026-2030 - - 2,720,000 322,223
2030-2033 - - 700,000 26,769
Total 39,595$ 9,528$ 39,145,000$ 5,477,419$
Bonds
Business-type Activities
Revenue
Year Ending
December 31
Year Ending
December 31
Governmental Activities
Edina Emerald Energy Program
Revenue Bonds
Governmental Activities
General Public Improvement
Obligation Bonds Revolving Bonds
Public Project
Revenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
55
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2015, was as follows:
Change in
Beginning Accounting Ending Due Within
Balance Principle (1)Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation 30,200,000$ -$ -$ (3,490,000)$ 26,710,000$ 2,410,000$
PIR 20,880,000 - 9,040,000 (6,015,000) 23,905,000 1,925,000
Public project revenue 21,560,000 - 3,490,000 (3,760,000) 21,290,000 900,000
EEEP revenue 50,970 - - (11,375) 39,595 -
Less deferred amounts:
Discount on bonds (428,166) - (47,815) 42,273 (433,708) -
Premiums 1,594,192 - 492,838 (257,140) 1,829,890 -
Total bonds payable 73,856,996 - 12,975,023 (13,491,242) 73,340,777 5,235,000
Compensated absences 3,850,518 - 1,911,251 (1,893,275) 3,868,494 1,547,398
Net pension liability - PERA - 18,528,522 5,857,523 (5,483,348) 18,902,697 -
Governmental activity
Long-term liabilities 77,707,514$ 18,528,522$ 20,743,797$ (20,867,865)$ 96,111,968$ 6,782,398$
Business-type activities:
Bonds payable:
Revenue bonds 44,420,000$ -$ 7,375,000$ (12,650,000)$ 39,145,000$ 5,300,000$
Less deferred amounts:
Discount on bonds (114,440) - (33,621) 15,782 (132,279) -
Premiums 1,575,799 - 330,200 (288,505) 1,617,494 -
Total bonds payable 45,881,359 - 7,671,579 (12,922,723) 40,630,215 5,300,000
Compensated absences 825,768 - 312,975 (280,329) 858,414 343,364
Net pension liability - PERA - 4,047,318 986,996 (1,001,951) 4,032,363 -
Business-type activity
Long-term liabilities 46,707,127$ 4,047,318$ 8,971,550$ (14,205,003)$ 45,520,992$ 5,643,364$
(1) Change in accounting principle to implement GASB Statements No. 68 and 71 described elsewhere in these notes.
For governmental activities, compensated absences and net pension liability are generally
liquidated by the general fund.
Employees earn pension benefits as members of a state-wide pension plan administered by
the PERA, the details of which are discussed elsewhere in the notes.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
56
In 2014, the City issued $12,720,000 of General Obligation bonds, Series 2014B to finance a
current refunding of the 2016 through 2017 maturities of the City’s $5,375,000 General
Obligation bonds, Series 2005A, the 2016 through 2017 maturities of the City’s $8,210,000
General Obligation utility revenue bonds, Series 2007B, the 2016 through 2019 maturities of
the City’s $13,985,000 General Obligation utility revenue bonds, Series 2008A, and the 2016
through 2020 maturities of the City’s $7,755,000 General Obligation permanent improvement
revolving fund bonds, Series 2008B. Savings from the current proceeds were not placed in
escrow. The General Obligation bonds, Series 2005A, Series 2007B, Series 2008A, and
Series 2008B were redeemed on February 1, 2015. The current refunding was undertaken to
reduce total debt service payments by $933,960 and resulted in an economic gain of
$915,095. The City anticipates that ad valorem taxes, utility revenues, and special
assessments to benefited properties will be sufficient to pay future debt service on this
issuance.
In 2015, the HRA issued $3,490,000 of HRA public project revenue bonds, Series 2015A to
finance a current refunding of the 2016 through 2026 maturities of the City’s $5,425,000 HRA
public project revenue bonds, series 2005A. Savings from the current proceeds were not
placed in escrow and the HRA public project revenue bonds, series 2005A were redeemed
on August 3, 2015. The current refunding was undertaken to reduce total debt service
payments by $345,061 and resulted in an economic gain of $307,988. The HRA anticipates
that annual appropriation lease payments will be sufficient to pay future debt service on this
issuance.
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of Total Remaining Principal Pledged
Debt Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009B Recreational Facility Bonds Pool improvement Pool 100% 2009-2017 170,025$ 81,075$ 971,936$
2009C Recreational Facility Bonds Arena improvements Arena 100% 2010-2030 2,589,325 175,725 2,307,985
2012B Recreational Facility Bonds Arena improvements Arena 100% 2013-2020 598,368 131,999 2,307,985
2012C Recreational Facility Bonds Arena improvements Arena 100% 2013-2033 2,733,297 53,794 2,307,985
2013B Recreational Facility Bonds Golf dome improvements Golf 100% 2014-2029 1,331,207 84,215 2,857,190
2015B Recreational Facility Bonds Golf course improvements Golf 100% 2016-2031 2,710,706 - 2,857,190
2011A Utility Revenue Bonds Utility infrastructure Utility 100% 2012-2022 8,937,225 1,275,200 19,334,023
2012A Utility Revenue Bonds Utility infrastructure Utility 100% 2013-2023 5,777,575 727,150 19,334,023
2014A Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2024 5,742,025 707,754 19,334,023
2014B Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2019 7,946,200 144,517 19,334,023
2015A Utility Revenue Bonds Utility infrastructure Utility 100% 2016-2025 6,086,463 - 19,334,023
Revenue Pledged Current Year
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
57
Note 5 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 2015 is
computed as follows:
December 31, 2015
Market Value (after fiscal disparities) 9,701,676,898$
Debt Limit (3% of Market Value) 291,050,307$
Amount of debt applicable to debt limit:
Total bonded debt 111,089,595$
Less:
Public improvement revolving bonds (23,905,000)
Revenue bonds (39,145,000)
EEEP revenue bonds (39,595)
Total debt applicable to debt limit 48,000,000$
Legal debt margin 243,050,307$
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit
pension plans administered by the PERA. PERA’s defined benefit pension plans are
established and administered in accordance with Minnesota Statutes, Chapters 353 and
356. PERA’s defined benefit pension plans are tax qualified plans under Section 401 (a)
of the Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the General
Employees Retirement Fund (GERF). GERF members belong to either the
Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by
Social Security and Basic Plan members are not. The Basic Plan was closed to new
members in 1967. All new members must participate in the Coordinated Plan.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
58
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a
local relief association, now covers all police officers and firefighters hired since
1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters
belonging to local relief associations that elected to merge with and transfer assets
and administration to the PERA.
B. BENEFITS PROVIDED
The PERA provides retirement, disability, and death benefits. Benefit provisions are
established by state statute and can only be modified by the State Legislature.
Benefit increases are provided to benefit recipients each January. Increases are related
to the funding ratio of the plan. Members in plans that are at least 90 percent funded for
two consecutive years are given 2.5 percent increases. Members in plans that have not
exceeded 90 percent funded, or have fallen below 80 percent, are given 1 percent
increases.
The benefit provisions stated in the following paragraphs of this section are current
provisions and apply to active plan participants. Vested, terminated employees who are
entitled to benefits but are not receiving them yet are bound by the provisions in effect at
the time they last terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive
years of allowable service, age, and years of credit at termination of service. Two
methods are used to compute benefits for the PERA’s Coordinated and Basic Plan
members. The retiring member receives the higher of a step-rate benefit accrual
formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the
annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for
each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary
for each of the first 10 years and 1.7 percent for each remaining year. Under Method
2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members
and 1.7 percent for Coordinated Plan members for each year of service. For
members hired prior to July 1, 1989, a full annuity is available when age plus years of
service equal 90 and normal retirement age is 65. For members hired on or after July
1, 1989, normal retirement age is the age for unreduced Social Security benefits
capped at 66.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
59
2. PEPFF Benefits
Benefits for PEPFF members first hired after June 30, 2010, but before July 1, 2014,
vest on a prorated basis from 50 percent after five years up to 100 percent after 10
years of credited service. Benefits for PEPFF members first hired after June 30,
2014, vest on a prorated basis from 50 percent after 10 years up to 100 percent after
20 years of credited service. The annuity accrual rate is 3 percent of average salary
for each year of service. For PEPFF members who were first hired prior to July 1,
1989, a full annuity is available when age plus years of service equal at least 90.
C. CONTRIBUTIONS
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions.
Contribution rates can only be modified by the State Legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.50 percent of their annual
covered salary in calendar year 2015. The City was required to contribute 7.50
percent for Coordinated Plan members in calendar year 2015. The City’s
contributions to the GERF for the year ended December 31, 2015 were $1,248,845.
The City’s contributions were equal to the required contributions as set by state
statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8 percent of their annual covered
salary in calendar year 2015. The City was required to contribute 16.20 percent of
pay for PEPFF members in calendar year 2015. The City’s regular contributions to
the PEPFF for the year ended December 31, 2015 were $1,268,476. The City’s
contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2015, the City reported a liability of $13,765,652 for its
proportionate share of the GERF’s net pension liability. The net pension liability was
measured as of June 30, 2015, 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
proportion of the net pension liability was based on the City’s contributions received
by the PERA during the measurement period for employer payroll paid dates from
July 1, 2014 through June 30, 2015, relative to the total employer contributions
received from all of the PERA’s participating employers. At June 30, 2015, the City’s
proportionate share was .2683 percent, which was a decrease of .0288 percent from
its proportion measured as of June 30, 2014.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
60
For the year ended December 31, 2015, the City recognized pension expense of
$1,495,832 for its proportionate share of the GERF’s pension expense.
At December 31, 2015, the City reported its proportionate share of the GERF’s
deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience –$ 694,023$
Differences between projected and actual investment earnings 1,303,129 –
Changes in proportion – 1,004,515
Contributions paid to the PERA subsequent to the measurement
date 647,405 –
Total 1,950,534$ 1,698,538$
$647,405 reported as deferred outflows of resources related to pensions resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2016. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2016 (240,397)$
2017 (240,397)$
2018 (240,397)$
2019 325,782$
2. PEPFF Pension Costs
At December 31, 2015, the City reported a liability of $9,169,408 for its proportionate
share of the PEPFF’s net pension liability. The net pension liability was measured as
of June 30, 2015, 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 proportion
of the net pension liability was based on the City’s contributions received by the
PERA during the measurement period for employer payroll paid dates from July 1,
2014 through June 30, 2015, relative to the total employer contributions received
from all of the PERA’s participating employers. At June 30, 2015, the City’s
proportion was .807 percent, which was a decrease of .004 percent from its
proportion measured as of June 30, 2014.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
61
For the year ended December 31, 2015, the City recognized pension expense of
$1,572,121 for its proportionate share of the PEPFF’s pension expense. The City
also recognized $72,630 for the year ended December 31, 2015, as revenue for its
proportionate share of the state of Minnesota’s on-behalf contributions to the PEPFF.
Legislation passed in 2013 required the state of Minnesota to begin contributing $9
million to the PEPFF each year, starting in fiscal year 2014.
At December 31, 2015, the City reported its proportionate share of the PEPFF’s
deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience –$ 1,486,978$
Differences between projected and actual investment earnings 1,597,618 –
Changes in proportion – 36,002
Contributions paid to the PERA subsequent to the measurement
date 666,767 –
Total 2,264,385$ 1,522,980$
$666,767 reported as deferred outflows of resources related to pensions resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2016. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2016 94,809$
2017 94,809$
2018 94,809$
2019 94,809$
2020 (304,598)$
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2015 actuarial valuation was determined using
the following actuarial assumptions:
Inflation 2.75% per year
Active member payroll growth 3.50% per year
Investment rate of return 7.90%
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
62
Salary increases were based on a service-related table. Mortality rates for active
members, retirees, survivors, and disabilitants were based on RP-2000 tables for males
or females, as appropriate, with slight adjustments. Cost of living benefit increases for
retirees are assumed to be: 1 percent effective every January 1st until 2034, then 2.5
percent for GERF and PEPFF.
Actuarial assumptions used in the June 30, 2015, valuation were based on the results of
actuarial experience studies. The experience study in the GERF was for the period July
1, 2004 through June 30, 2008, with an update of economic assumptions in 2014. The
experience study for the PEPFF was for the period July 1, 2004 through June 30, 2009.
There were no changes in actuarial assumptions in 2015.
The long-term expected rate of return on pension plan investments is 7.9 percent. The
State Board of Investment, which manages the investments of the PERA, prepares an
analysis of the reasonableness of the long-term expected rate of return on a regular basis
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
arithmetic real rates of return for each major asset class are summarized in the following
table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Domestic stocks 45% 5.50%
International
stocks
15% 6.00%
Bonds 18% 1.45%
Alternative assets 20% 6.40%
Cash 2% 0.50%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.9 percent. The projection
of cash flows used to determine the discount rate assumed that employee and employer
contributions will be made at the rate specified in statute. Based on that assumption, each of
the pension plan’s fiduciary net position was projected to be available to make all projected
future benefit payments of current active and inactive employees. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
63
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as
well as what the City’s proportionate share of the net pension liability would be if it were
calculated using a discount rate 1 percentage point lower or 1 percentage point higher than
the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(6.9%) (7.9%) (8.9%)
The City’s proportionate share of the
GERF net pension liability 21,644,497$ 13,765,652$ 7,258,935$
The City’s proportionate share of the
PEPFF net pension liability 17,871,273$ 9,169,408$ 1,980,152$
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a
separately-issued PERA financial report that includes financial statements and required
supplementary information. That report may be obtained on the PERA website at
www.mnpera.org.
Note 7 OTHER POST-EMPLOYMENT BENEFITS PLAN
A. PLAN DESCRIPTION
The City provides post-employment insurance benefits to certain eligible employees
through City’s Other Post-Employment Benefits Plan, a single-employer defined benefit
plan administered by the City. All post-employment benefits are based on contractual
agreements with employee groups. These contractual agreements do not include any
specific contribution or funding requirements. These benefits are summarized as follows:
Post-Employment Insurance Benefits – All retirees of the City 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
64
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.
B. FUNDING POLICY
The required contribution is based on projected pay-as-you-go financing requirements,
with additional amounts to pre-fund benefits as determined annually by the City.
Historically the City has chosen pay-as-you-go financing for OPEB, generally this liability
is liquidated by all funds that employ full-time employees on a pro-rata basis.
C. ANNUAL OPEB COST AND NET OPEB OBLIGATION
The City’s annual OPEB cost (expense) is calculated based on annual required
contributions (ARC) of the City, an amount determined on an actuarially determined basis
in accordance with the parameters of codification Statement Nos. 43 and 45. The ARC
represents a level funding that, if paid on an ongoing basis, is projected to cover normal
costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed 30 years. The following table shows the components of the City’s
annual OPEB cost for the year, the amount actually contributed to the plan, and the
changes in the City’s net OPEB obligation to the plan:
Annual required contribution 316,720$
Interest on net OPEB obligation 77,390
Adjustment to annual required contribution (64,928)
Annual OPEB cost (expense) 329,182
Contributions made (119,780)
Increase in net OPEB obligation 209,402
Net OPEB obligation - beginning of year 1,719,772
Net OPEB obligation - end of year 1,929,174$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for the past three years are as follows:
Percentage of
Fiscal Annual Employer Annual OPEB Net OPEB
Year Ended OPEB Cost Contribution Cost Contributed Obligation
December 31, 2013 319,144$ 92,934$ 29.1% 1,487,975$
December 31, 2014 318,242 86,445 27.2% 1,719,772
December 31, 2015 329,182 119,780 36.4% 1,929,174
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
65
D. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2014, the most recent actuarial valuation date, the plan was zero
percent funded. The actuarial accrued liability for benefits was $3,026,848, and the
actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability
(UAAL) of $3,026,848. The covered payroll (annual payroll of active employees covered
by the plan) was $20,305,179, and the ratio of the UAAL to the covered payroll was 14.9
percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability occurrence of events far into the future.
Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and ARCs of the
employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The Schedule of Funding
Progress immediately following the notes to the basic financial statements presents multi-
year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
E. ACTUARIAL METHODS AND ASSUMPTIONS
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method
was used. The actuarial assumptions included: a 4.5 percent investment rate of return
(net of administrative expenses) based on the City’s own investments; a 3.0 percent
general inflation rate, a payroll growth rate of 3.75 percent, and an annual healthcare cost
trend rate of 9.0 percent initially, reduced by decrements to an ultimate rate of 5.0
percent after twelve years. The UAAL is being amortized as a level percentage of payroll.
The remaining amortization period at January 1, 2014 was 30 years on an “open” basis.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
66
Note 8 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of due from other funds and due to other funds account balances as of
December 31, 2015, is as follows:
Payable Fund Amount
Sports Dome Arena 7,103$
Receivable Fund
The City’s interfund receivable and payable eliminates what would have been a negative cash
balance.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
67
Governmental Debt Nonmajor
Activities Service Construction Golf Course Arena Enterprise Total
Transfer out:
General Fund -$ -$ 1,848,294$ -$ -$ -$ 1,848,294$
Construction Fund - 1,000,000 - - 1,045,070 2,321,533 4,366,603
Utilities Fund - - 184,476 - - - 184,476
Liquor Fund - - 200,000 285,000 200,000 100,000 785,000
Golf Course Fund 1,008,330 - - - - - 1,008,330
Nonmajor Governmental - - - 156,871 - 100,298 257,169
1,008,330$ 1,000,000$ 2,232,770$ 441,871$ 1,245,070$ 2,521,831$ 8,449,872$
Transfer 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. Non-routine transfers include the following:
1. The liquor fund transferred $285,000, $200,000 and $100,000 to the golf course fund,
arena, and art center funds, respectively, to subsidize operations.
2. The construction fund transferred $125,574 and $30,486 to the arena and edinborough
park funds, respectively, to subsidize capital improvements to those facilities.
3. The environmental efficiency fund transferred $100,298 to the edinborough fund to
subsidize capital improvements.
4. The construction fund transferred $919,496 and $2,291,047, respectively, to the arena
and sports dome funds to reimburse for debt proceeds initially received in the
construction fund for capital projects at those facilities.
5. The utilities fund and liquor fund transferred $100,000 and $200,000, respectively, to the
construction fund to fund the capital improvement program, as planned in the 2015
budget.
6. The general fund transferred $708,294 of the 2014 unassigned fund balance to the
construction fund to subsidize the capital improvement program.
7. The general fund transferred $1,140,000 to the construction fund for use of park reserves
from the parkland dedication money received in 2014 and 2015.
8. The braemar memorial fund transferred $156,871 to the golf course fund to subsidize
capital improvements.
9. The utilities fund transferred $84,476 to the construction fund to fund a portion of the
Utley park well house project.
10. The construction fund transferred $1,000,000 of PIR assessment revenue to the debt
service fund for related debt payments.
11. The golf course fund contributed land and buildings from the now closed Fred Richards
golf course to the governmental activities capital assets; the assets have a net book
value of $1,008,330.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
68
Note 9 TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are the administering authorities for the
following Tax Increment Districts:
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
District number 1211 (Pentagon Park Increment Financing District) is an economic development
district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043.
The following table reflects values as of December 31, 2015:
TIF #1208 TIF #1211 Total
Original tax capacity 8,772,449$ 902,428$ 9,674,877$
Current tax capacity 12,000,565 902,428 12,902,993
Fiscal Disparities 734,748 - 734,748
Tax capacity change 2,493,368 - 2,493,368
Captured tax capacity value:
Retained captured tax capacity 2,493,368$ -$ 2,493,368$
Note 10 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.
Worker’s compensation insurance was provided through the League of Minnesota Cities
Insurance Trust. There is no deductible. 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 $50,000 per occurrence deductible and is
subject to an annual aggregate deductible of $100,000, with a $1,500,000 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. While there were no significant decreases in insurance coverage during 2015,
there were significant increases in insurance coverage.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
69
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, 2015.
D. TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of
the State Auditor (OSA). Any disallowed claims or misuse of tax increments could
become a liability of the applicable fund. Management is not aware of any instances of
noncompliance which would have a material effect on the financial statements.
Note 11 CONDUIT DEBT OBLIGATION
As of December 31, 2015, the City of Edina had five series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $51,595,000. The bonds are payable
solely from revenues of the respective organizations and do not constitute an indebtedness of the
City, and are not a charge against its general credit or taxing power. Accordingly, the bonds are
not reported as liabilities in the accompanying financial statements.
Note 12 JOINT VENTURE
The City is a participant with the City of Bloomington, the City of Eden Prairie and the
Metropolitan Airport Commission in a joint venture to construct and operate a facility to be used
for the training of law enforcement officers and firefighters. The South Metro Public Safety
Training Facility Association (PSTF) is governed by a Board consisting of one representative from
each Member. On dissolution of the Association, the Facility shall revert to the City of Edina, and
all remaining assets shall be divided among the members based on the Cost Sharing Formula. In
accordance with the joint venture agreement, each member of the association will share in the
cost of the construction and operation based on the Cost Sharing Formula. The City’s equity
interest in the capital assets of the PSTF was $1,584,465. Complete financial statements for
PSTF can be obtained from the City of Edina, 4801 West 50th Street, Edina, MN 55424.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
70
Note 13 RELATED PARTY TRANSACTIONS
The City pays an annual membership fee to the South Metro Public Safety Training Facility as
part of the joint venture agreement. The membership fee is paid by the Police and Fire
departments and is based on a Cost Sharing Formula. For the year ended December 31, 2015,
the City paid a total of $53,027 in membership fees to the PSTF.
The City also pays an annual membership fee to the I-494 Corridor Commission as part of the
joint venture agreement. The membership fee is paid by the commissions and projects
department and is based on a Cost Sharing Formula. For the year ended December 31, 2015,
the City paid a total of $14,765 in membership fees to the I-494 Corridor Commission.
Note 14 FUND BALANCES
A. Classifications
At December 31, 2015, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund Debt Service Construction
Nonmajor
Funds Total
Nonspendable
Prepaid items 529,513$ -$ -$ -$ -$ 529,513$
Restricted
Park dedication 417,673 - - - - 417,673
Tax increments - 8,021,960 - - - 8,021,960
Debt service - - 7,134,575 - - 7,134,575
Unspent bond proceeds - - - 222,461 - 222,461
Pedestrian and cyclist improvements - - - - 713,168 713,168
Energy efficiency projects - - - - 328,671 328,671
Forfeitures - - - - 440,065 440,065
Grant funds - - - - 85,588 85,588
Arts and culture - - - - 2,748 2,748
Donations - - - - 142,228 142,228
Total Restricted 417,673 8,021,960 7,134,575 222,461 1,712,468 17,509,137
Assigned
Compensated absences 1,547,398 - - - - 1,547,398
Construction commitments - - - 738,262 - 738,262
Special projects - - - 1,518,567 - 1,518,567
Equipment - - - 2,761,731 - 2,761,731
PIR - - - 3,070,057 - 3,070,057
Construction - - - 5,039,264 - 5,039,264
Total Assigned 1,547,398 - - 13,127,881 - 14,675,279
Unassigned 11,825,799 - - - - 11,825,799
Total Fund Balance 14,320,383$ 8,021,960$ 7,134,575$ 13,350,342$ 1,712,468$ 44,539,728$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
71
B. Unassigned Fund Balance Policy
The City Council has formally adopted a fund balance policy regarding the desired range for
unassigned fund balance for the general fund. The policy establishes a goal for unassigned
general fund balance of 42%-47% of the subsequent year’s budgeted property tax revenue.
As of December 31, the City has $11,825,799 of unassigned fund balance in the general
fund, or 47.3% of 2016 budgeted property tax revenue. This amount is $64,542 above the
goal range identified in the policy.
72
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CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2015
2015
Actual Variance with
Original Final Amounts Final Budget
Revenues:
Taxes:
General property taxes 23,255,958$ 22,810,958$ 22,822,441$ 11,483$
Franchise taxes 770,000 770,000 833,229 63,229
Lodging tax - - 22,716 22,716
Total taxes 24,025,958 23,580,958 23,678,386 97,428
Licenses and permits: 3,230,080 3,830,080 4,827,634 997,554
Intergovernmental:
Federal: 36,000 36,000 184,418 148,418
State:
Municipal state aid 195,000 195,000 246,744 51,744
Other 42,500 42,500 147,189 104,689
State aid - police 320,000 320,000 378,177 58,177
State aid - fire 420,000 420,000 402,247 (17,753)
Health programs 100,000 100,000 118,919 18,919
Total intergovernmental 1,113,500 1,113,500 1,477,694 364,194
Charges for services:
Administration - - 67,816 67,816
Communications & Technology 115,349 115,349 93,325 (22,024)
Finance 661,680 661,680 651,625 (10,055)
Public Works 69,000 69,000 103,020 34,020
Engineering 418,400 418,400 197,379 (221,021)
Police 341,490 341,490 591,917 250,427
Fire 2,000,000 2,000,000 2,116,106 116,106
Parks & Recreation 278,275 278,275 344,294 66,019
Community Development 85,300 85,300 61,208 (24,092)
Total charges for services 3,969,494 3,969,494 4,226,690 257,196
Fines and forfeits 950,000 950,000 1,033,116 83,116
Miscellaneous:
Investment income 150,000 150,000 78,713 (71,287)
Rental of property 450,000 450,000 416,522 (33,478)
Parkland dedication - - 800,000 800,000
Other 11,100 11,100 69,139 58,039
Total miscellaneous 611,100 611,100 1,364,374 753,274
Total revenues 33,900,132 34,055,132 36,607,894 2,552,762
Budgeted Amounts
73
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2015
2015
Actual Variance with
Original Final Amounts Final Budget
Expenditures:
General government:
Administration:
Personal services 805,914$ 805,914$ 877,672$ 71,758$
Contractual services 710,100 690,100 574,084 (116,016)
Commodities 17,000 17,000 26,192 9,192
Central services 106,224 106,224 103,343 (2,881)
Total administration 1,639,238 1,619,238 1,581,291 (37,947)
Communications & technology:
Personal services 620,803 620,803 638,422 17,619
Contractual services 303,935 303,935 308,090 4,155
Commodities 46,000 46,000 40,810 (5,190)
Central services 69,936 69,936 65,958 (3,978)
Total communications & technology 1,040,674 1,040,674 1,053,280 12,606
Human Resources:
Personal services 635,243 635,243 823,603 188,360
Contractual services 38,250 38,250 19,731 (18,519)
Commodities 2,500 2,500 1,014 (1,486)
Central services 19,644 19,644 18,380 (1,264)
Total human resources 695,637 695,637 862,728 167,091
Finance:
Personal services 630,730 630,730 484,177 (146,553)
Contractual services 212,700 212,700 223,253 10,553
Commodities 4,500 4,500 12,707 8,207
Central services 56,988 56,988 55,467 (1,521)
Total finance 904,918 904,918 775,604 (129,314)
Community development:
Personal services 1,276,864 1,276,864 1,243,885 (32,979)
Contractual services 206,720 206,720 138,458 (68,262)
Commodities 8,900 8,900 2,283 (6,617)
Central services 119,676 119,676 114,219 (5,457)
Total community development 1,612,160 1,612,160 1,498,845 (113,315)
Total general government 5,892,627 5,872,627 5,771,748 (100,879)
Public safety:
Police:
Personal services 8,144,312 8,144,312 7,970,349 (173,963)
Contractual services 957,500 957,500 985,312 27,812
Commodities 92,215 92,215 84,480 (7,735)
Central services 1,163,388 1,163,388 1,103,307 (60,081)
Total police 10,357,415 10,357,415 10,143,448 (213,967)
Fire:
Personal services 5,694,114 5,774,114 5,862,955 88,841
Contractual services 507,600 515,600 518,838 3,238
Commodities 205,400 212,400 311,557 99,157
Central services 505,284 505,284 477,514 (27,770)
Total fire 6,912,398 7,007,398 7,170,864 163,466
Total public safety 17,269,813 17,364,813 17,314,312 (50,501)
Budgeted Amounts
74
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2015
2015
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
Public works:
Public works:
Personal services 4,445,240$ 4,445,240$ 4,414,046$ (31,194)$
Contractual services 1,182,350 1,182,350 1,265,694 83,344
Commodities 1,289,900 1,289,900 1,332,576 42,676
Central services 1,542,120 1,542,120 1,415,277 (126,843)
Total public works 8,459,610 8,459,610 8,427,593 (32,017)
Engineering:
Personal services 1,422,195 1,502,195 1,342,034 (160,161)
Contractual services 87,000 87,000 82,932 (4,068)
Commodities 31,000 31,000 22,041 (8,959)
Central services 114,900 114,900 106,874 (8,026)
Total engineering 1,655,095 1,735,095 1,553,881 (181,214)
Total public works 10,114,705 10,194,705 9,981,474 (213,231)
Parks:
Parks & recreation:
Personal services 963,359 963,359 912,346 (51,013)
Contractual services 275,439 275,439 289,949 14,510
Commodities 68,877 68,877 84,649 15,772
Central services 80,412 80,412 78,476 (1,936)
Total parks & recreation 1,388,087 1,388,087 1,365,420 (22,667)
Total parks 1,388,087 1,388,087 1,365,420 (22,667)
Total expenditures 34,665,232 34,820,232 34,432,954 (387,278)
Revenues over (under) expenditures (765,100) (765,100) 2,174,940 2,940,040
Other financing sources (uses):
Transfer from other funds 765,100 - - -
Transfer to other funds - (1,848,294) (1,848,294) -
Total financing sources (uses) 765,100 (1,848,294) (1,848,294) -
Net increase (decrease) in fund balance -$ (2,613,394)$ 326,646 2,940,040$
Fund balance - January 1 13,993,737
Fund balance - December 31 14,320,383$
75
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2015
2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
Tax increment collections 100,000$ 100,000$ 1,792,896$ 1,692,896$
Investment income 94,000 94,000 27,564 (66,436)
Charges for services - - 44,308 44,308
Total revenues 194,000 194,000 1,864,768 1,670,768
Expenditures:
Personal services 118,467 118,467 120,415 1,948
Contractual services 6,120 6,120 305,879 299,759
Commodities 200 200 422 222
Capital outlay - 3,685,000 1,346,090 (2,338,910)
Total expenditures 124,787 3,809,787 1,772,806 (2,036,981)
Net increase (decrease) in fund balance 69,213$ (3,615,787)$ 91,962 3,707,749$
Fund balance - January 1 7,929,998
Fund balance - December 31 8,021,960$
Budgeted Amounts
76
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2015
Unfunded Unfunded
Actuarial Actuarial Actuarial Actuarial Liability as a
Valuation Accrued Value of Accrued Funded Covered Percentage of
Date Liability Plan Assets Liability Ratio Payroll Payroll
January 1, 2010 2,966,250$ -$ 2,966,250$ 0.0% 17,786,616$ 16.7%
January 1, 2012 2,959,876$ -$ 2,959,876$ 0.0% 18,220,189$ 16.2%
January 1, 2014 3,026,848$ -$ 3,026,848$ 0.0% 20,305,179$ 14.9%
77
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC EMPLOYEES GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2015
12/31/2015 6/30/2015 0.2683% 13,765,652$ 16,651,642$ 82.67% 78.20%
12/31/2015 6/30/2015 1,248,845$ 1,248,845$ –$ 16,651,642$ 7.50%
Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This information is not
available for previous fiscal years.
City Fiscal
Year End
Date
PERA Fiscal
Year End Date
(Measurement
Date)
City's Covered
Payroll (b)
City Fiscal
Year End
Date
PERA Fiscal
Year End Date
(Measurement
Date)
Statutorily
Required
Contributions
(a)
Contribution
Deficiency
(Excess) (a-b)
City's
Proportion of
the Net
Pension
Liability
City's
Proportionate
Share of the Net
Pension Liability
(a)
City's Proportionate
Share of the Net
Pension Liability as a
Percentage of Covered
Payroll (a/b)
Plan Fiduciary Net
Position as a
Percentage of the
total Pension Liability
Contributions in
Relation to the
Statutorily
Required
Contributions (b)
Schedule of Employer Contributions
Schedule of City's Proportionate Share of Net Pension Liability
Covered Payroll (d)
Contributions as a
Percentage of
Covered Payroll (b/d)
78
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2015
12/31/2015 6/30/2015 0.8070% 9,169,408$ 7,797,803$ 117.59% 86.60%
12/31/2015 6/30/2015 1,268,476$ 1,268,476$ –$ 7,797,803$ 16.27%
Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This information is not
available for previous fiscal years.
Schedule of Employer Contributions
City Fiscal
Year End
Date
PERA Fiscal
Year End Date
(Measurement
Date)
Statutorily
Required
Contributions
(a)
Contributions in
Relation to the
Statutorily
Required
Contributions (b)
Contribution
Deficiency
(Excess) (a-b) Covered Payroll (d)
Contributions as a
Percentage of
Covered Payroll (b/d)
Schedule of City's Proportionate Share of Net Pension Liability
City Fiscal
Year End
Date
PERA Fiscal
Year End Date
(Measurement
Date)
City's
Proportion of
the Net
Pension
Liability
City's
Proportionate
Share of the Net
Pension Liability
(a)
City's Covered
Payroll (b)
City's Proportionate
Share of the Net
Pension Liability as a
Percentage of Covered
Payroll (a/b)
Plan Fiduciary Net
Position as a
Percentage of the
total Pension Liability
79
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015
80
Note A 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 the General Fund, HRA, debt service, construction, CDBG, police special
revenue, Braemar memorial, PACS, arts & culture, and environmental efficiency funds are
adopted on a basis consistent with generally accepted accounting principles (GAAP).
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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2015
81
Note B EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund is legally adopted on a basis consistent with accounting principles generally
accepted in the United States of America. The legal level of budgetary control is at the department
level for the General Fund. The following is a listing of General Fund departments whose
expenditures exceed budget appropriations.
Final Over
Budget Actual Budget
General Fund
General Government
Communications & technology 1,040,674$ 1,053,280$ 12,606$
Human resources 695,637 862,728 167,091
Public Safety
Fire 7,007,398 7,170,864 163,466
Excess expenditures in the General Fund communications & technology services department are due
to an increase in salaries primarily related to an increase in hours worked by interns throughout 2015.
Excess expenditures in the General Fund human resources department are due to an increase in
salaries related to two factors. First, the payroll specialist, previously within the finance department,
was reallocated here during 2014, with the change not being reflected until the 2016-2017 biennial
budget. Second, severance pay for governmental employees was over budget; it is run through the
human resources department and is difficult to budget for.
The HRA, debt service, construction, CDBG, police special revenue, and braemar memorial, PACS,
arts & culture, and environmental efficiency funds budgets are legally adopted on a basis consistent
with accounting principles generally accepted in the United States of America. The legal level of
budgetary control is at the fund level for these funds. The following is a listing of funds whose
expenditures exceed budget appropriations.
Final Over
Budget Actual Budget
Debt Service Fund 6,654,894$ 15,651,988$ 8,997,094$
Construction Fund 13,604,692 17,353,602 3,748,910
Police SR Fund 61,000 380,532 319,532
Arts and Culture Fund 22,907 25,902 2,995
Excess expenditures in the debt service fund are due to unbudgeted refunding’s of debt.
Excess expenditures in the construction fund is the result of unbudgeted projects, with expenditures
offset by alternative funding sources such as intergovernmental funding and state aid maintenance.
Excess expenditures in the Police SR fund are due to unbudgeted purchases of capital equipment
related to the E911 call system and dispatch center.
Excess expenditures in arts and culture fund are due to more being spent on public art and music in
Edina than anticipated.
82
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A Special Revenue Fund is used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
The following are nonmajor special revenue funds:
Community Development Block Grant Fund - This fund was established to
account for funds received under Title I of the Housing and Community
Development Act of 1974.
Police Special Revenue Fund - This fund was established to account for funds
received for specific purposes within the police department, including
E-911 and forfeiture funds.
Braemar Memorial Fund - This fund was established to account for funds
donated to the City for the purpose of enhancing the Braemar golf course
with equipment and amenities that might not otherwise be affordable or viewed
as a necessity to the golf course.
Pedestrian and Cyclist Safety Fund - This fund was established to account for
funds received from gas and electric franchise fees to be used for pedestrian
and cyclist improvements included in future street reconstruction projects.
Arts and Culture Fund - This fund was established to account for funds
donated to the City for the purpose of enhancing public arts and culture related
activities.
A Capital Project Fund is used to account for and report financial resources
used for the acquisition of capital assets.
The following is a nonmajor capital project fund:
Environmental Efficiency Fund - This fund was established to account for funds
received through energy cost savings to be reinvested in future energy efficiencies.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Capital Project Funds
83
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2015
Capital
Projects
Community Police Pedestrian Total Nonmajor
Development Special Braemar and Cyclist Arts and Environmental Governmental
Block Grant Revenue Memorial Safety Culture Efficiency Funds
Assets
Cash and investments -$ 516,833$ 141,494$ 431,575$ 2,788$ 340,014$ 1,432,704$
Accrued interest - - 734 2,000 7 1,846 4,587
Accounts receivable - - - 292,117 - - 292,117
Due from other governments 78,360 9,338 - 49,778 91 - 137,567
Total assets 78,360$ 526,171$ 142,228$ 775,470$ 2,886$ 341,860$ 1,866,975$
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Liabilities:
Accounts payable 78,360$ 518$ -$ 54,620$ 47$ 1,910$ 135,455$
Salaries payable - - - 1,708 - - 1,708
Contracts payable - - - 5,974 - 11,279 17,253
Total liabilities 78,360 518 - 62,302 47 13,189 154,416
Deferred inflows of resources
Unavailable revenue - taxes - - - - 91 - 91
Fund balance:
Restricted - 525,653 142,228 713,168 2,748 328,671 1,712,468
Total liabilities, deferred
inflows of resources,
and fund balance 78,360$ 526,171$ 142,228$ 775,470$ 2,886$ 341,860$ 1,866,975$
Special Revenue
84
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2015
Capital
Projects
Community Police Pedestrian Total Nonmajor
Development Special Braemar and Cyclist Arts and Environmental Governmental
Block Grant Revenue Memorial Safety Culture Efficiency Funds
Revenues:
General property taxes -$ -$ -$ -$ 20,000$ -$ 20,000$
Franchise taxes - - - 1,154,534 - - 1,154,534
Intergovernmental 97,390 - - 88,691 - - 186,081
Fines and forfeitures - 162,155 - - - - 162,155
Investment income - 22 1,544 5,252 - - 6,818
Other revenues - - 2,973 49,778 3,066 - 55,817
Total revenues 97,390 162,177 4,517 1,298,255 23,066 - 1,585,405
Expenditures:
Current:
General government 97,390 - - - - - 97,390
Public safety - 206,581 - - - - 206,581
Public works - - - 171,622 - - 171,622
Parks - - 15,641 - 25,902 - 41,543
Capital Outlay:
Public safety - 173,951 - - - 22,516 196,467
Public works - - - 1,142,961 - 367,441 1,510,402
Parks - - - - - - -
Total expenditures 97,390 380,532 15,641 1,314,583 25,902 389,957 2,224,005
Revenues over (under)
expenditures - (218,355) (11,124) (16,328) (2,836) (389,957) (638,600)
Other financing sources (uses):
Transfers out - - (156,871) - - (100,298) (257,169)
Net increase (decrease)
in fund balance - (218,355) (167,995) (16,328) (2,836) (490,255) (895,769)
Fund balance -
January 1 - 744,008 310,223 729,496 5,584 818,926 2,608,237
Fund balance -
December 31 -$ 525,653$ 142,228$ 713,168$ 2,748$ 328,671$ 1,712,468$
Special Revenue
85
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 100,000$ 100,000$ 97,390$ (2,610)$
Expenditures:
Current:
Contractual services 100,000 100,000 97,390 (2,610)
Net increase (decrease) in fund balance -$ -$ - -$
Fund balance - January 1 -
Fund balance - December 31 -$
Budgeted Amounts
86
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - POLICE SPECIAL REVENUE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 115,325$ 115,325$ -$ (115,325)$
Fines and forfeiture 57,821 57,821 162,155 104,334
Investment income 300 300 22 (278)
Total revenues 173,446 173,446 162,177 (11,269)
Expenditures:
Current:
Contractual services 56,000 56,000 96,488 40,488
Commodities 5,000 5,000 110,093 105,093
Capital outlay - - 173,951 173,951
Total expenditures 61,000 61,000 380,532 319,532
Net increase (decrease) in fund balance 112,446$ 112,446$ (218,355) (330,801)$
Fund balance - January 1 744,008
Fund balance - December 31 525,653$
Budgeted Amounts
87
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - BRAEMAR MEMORIAL
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
Investment income 200$ 200$ 1,544$ 1,344$
Donations 7,000 7,000 2,973 (4,027)
Total revenues 7,200 7,200 4,517 (2,683)
Expenditures:
Current:
Contractual services - - 15,641 15,641
Capital outlay 275,000 240,000 - (240,000)
Total expenditures 275,000 240,000 15,641 (224,359)
Revenues over (under) expenditures (267,800) (232,800) (11,124) 221,676
Other financing sources (uses):
Transfers out - - (156,871) (156,871)
Net increase (decrease) in fund balance (267,800)$ (232,800)$ (167,995) 64,805$
Fund balance - January 1 310,223
Fund balance - December 31 142,228$
Budgeted Amounts
88
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - PEDESTRIAN AND CYCLIST SAFETY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 1,200,000$ 1,200,000$ 1,154,534$ (45,466)$
Intergovernmental - - 88,691 88,691
Investment income - - 5,252 5,252
Other revenues - - 49,778 49,778
Total revenues 1,200,000 1,200,000 1,298,255 98,255
Expenditures:
Current:
Personal services - - 1,684 1,684
Contractual services 23,000 23,000 72,310 49,310
Commodities 28,000 28,000 15,884 (12,116)
Central services 81,744 81,744 81,744 -
Capital outlay 1,100,000 1,418,559 1,142,961 (275,598)
Total expenditures 1,232,744 1,551,303 1,314,583 (236,720)
Net increase (decrease) in fund balance (32,744)$ (351,303)$ (16,328) 334,975$
Fund balance - January 1 729,496
Fund balance - December 31 713,168$
Budgeted Amounts
89
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - ARTS AND CULTURE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes -$ 20,000$ 20,000$ -$
Other revenues - 23,000 3,066 (19,934)
Total revenues - 43,000 23,066 (19,934)
Expenditures:
Current:
Personal services - - 274 274
Contractual services - 21,057 24,554 3,497
Commodities - 1,850 1,074 (776)
Total expenditures - 22,907 25,902 2,995
Net increase (decrease) in fund balance -$ 20,093$ (2,836) (22,929)$
Fund balance - January 1 5,584
Fund balance - December 31 2,748$
Budgeted Amounts
90
CITY OF EDINA, MINNESOTA
CAPITAL PROJECTS FUND - ENVIRONMENTAL EFFICIENCY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Expenditures:
Current:
Capital outlay -$ 518,951$ 389,957$ (128,994)$
Other financing sources (uses):
Transfers out - - (100,298) (100,298)
Net increase (decrease) in fund balance -$ (518,951)$ (490,255) 28,696$
Fund balance - January 1 818,926
Fund balance - December 31 328,671$
Budgeted Amounts
91
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92
Debt Service Fund - This fund was established to account for the payment of
principal and interest on the General Obligation, Permanent Improvement
Revolving, Public Project Revenue, and Edina Emerald Energy Program Bonds.
Construction Fund - This fund was established to account for various special
assessment and state aid projects throughout the City. This fund also provides
financing for capital improvements as designated in the City's capital
improvement budget.
MAJOR GOVERNMENTAL FUNDS
93
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND - DEBT SERVICE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 3,960,980$ 5,128,980$ 5,085,348$ (43,632)$
Special assessments 2,083,699 2,083,699 47,491 (2,036,208)
Investment income 20,000 20,000 945 (19,055)
Total revenues 6,064,679 7,232,679 5,133,784 (2,098,895)
Expenditures:
Debt Service 6,179,315 6,654,894 15,651,988 8,997,094
Revenues over (under) expenditures (114,636) 577,785 (10,518,204) (11,095,989)
Other financing sources (uses):
Transfers in - - 1,000,000 1,000,000
Bonds issued - - 361,315 361,315
Refunding bonds issued - - 3,490,000 3,490,000
Premium on bonds issued - - 150,346 150,346
Discount on bonds issued - - (27,173) (27,173)
Total other financing
sources (uses) - - 4,974,488 4,974,488
Net increase (decrease) in fund balance (114,636)$ 577,785$ (5,543,716) (6,121,501)$
Fund balance - January 1 12,678,291
Fund balance - December 31 7,134,575$
Budgeted Amounts
94
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND - CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2015
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 1,192,072$ 1,617,072$ 1,607,481$ (9,591)$
Franchise taxes 100,000 100,000 101,275 1,275
Special assessments 1,361,088 1,909,298 4,084,637 2,175,339
License and permits 25,000 50,000 79,730 29,730
Intergovernmental 880,000 3,725,000 4,430,191 705,191
Charges for services 50,000 50,000 143,993 93,993
Investment income 62,900 62,900 81,274 18,374
Other revenues - 580,000 236,469 (343,531)
Total revenues 3,671,060 8,094,270 10,765,050 2,670,780
Expenditures:
Personal services 106,559 106,559 120,094 13,535
Contractual services 146,721 146,721 344,381 197,660
Commodities 71,720 71,720 28,363 (43,357)
Central services - - 1,158 1,158
Capital outlay 10,200,412 13,279,692 16,859,606 3,579,914
Total expenditures 10,525,412 13,604,692 17,353,602 3,748,910
Revenues over (under) expenditures (6,854,352) (5,510,422) (6,588,552) (1,078,130)
Other financing sources (uses):
Transfers in 300,000 300,000 2,232,770 1,932,770
Transfers out (1,596,700) (327,178) (4,366,603) (4,039,425)
Sale of capital assets - - 78,509 78,509
Insurance recovery - - 167,167 167,167
Bonds issued 3,619,200 4,599,895 8,678,685 4,078,790
Premium on bonds issued - - 342,492 342,492
Discount on bonds issued - - (20,642) (20,642)
Total other financing
sources (uses) 2,322,500 4,572,717 7,112,378 2,539,661
Net increase (decrease) in fund balance (4,531,852)$ (937,705)$ 523,826 1,461,531$
Fund balance - January 1 12,826,516
Fund balance - December 31 13,350,342$
Budgeted Amounts
95
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96
Enterprise funds account for the financing of self-supporting activities of
governmental units which render services to the general public on a user charge
basis. The following are nonmajor enterprise funds:
Art Center Fund - This fund accounts for activities related to the City's Art Center.
Edinborough Park Fund - This fund accounts for activities related to Edinborough
Park.
Centennial Lakes Fund - This fund accounts for activities related to
Centennial Lakes Park.
Sports Dome Fund - This fund accounts for activities related to the
Sports Dome.
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
97
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
December 31, 2015
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Assets
Current assets:
Cash and investments 296,362$ 1,835,756$ 754,375$ 409,102$ 3,295,595$
Interest receivable 726 4,480 2,201 - 7,407
Accounts receivable - 7,721 - 146,184 153,905
Due from other funds - - - 7,103 7,103
Inventory 8,651 - - - 8,651
Total current assets 305,739 1,847,957 756,576 562,389 3,472,661
Noncurrent assets:
Net capital assets 114,400 1,244,438 291,045 8,860,222 10,510,105
Deferred outflows of resources:
Defined benefit pension plans 39,405 59,107 39,405 19,702 157,619
Total assets and deferred
outflows of resources 459,544 3,151,502 1,087,026 9,442,313 14,140,385
Liabilities:
Current liabilities:
Accounts payable 15,368 24,580 12,227 66,723 118,898
Salaries payable 4,254 13,722 7,586 638 26,200
Contracts payable - 143,584 - 324,027 467,611
Due to other governments 1,041 8,349 261 2,297 11,948
Unearned revenue 9,365 30 - - 9,395
Compensated absences payable 6,820 9,382 32,363 - 48,565
Total current liabilities 36,848 199,647 52,437 393,685 682,617
Noncurrent liabilities:
Net OPEB obligation 6,923 15,373 15,263 - 37,559
Net pension liability 278,094 417,141 278,094 139,047 1,112,376
Compensated absences payable 10,231 14,074 48,544 - 72,849
Total noncurrent liabilities 295,248 446,588 341,901 139,047 1,222,784
Deferred inflows of resources:
Defined benefit pension plans 34,314 51,471 34,314 17,157 137,256
Total liabilities and deferred
inflows of resources 366,410 697,706 428,652 549,889 2,042,657
Net position:
Net investment in capital assets 114,400 1,100,854 291,045 8,536,195 10,042,494
Unrestricted (21,266) 1,352,942 367,329 356,229 2,055,234
Total net position 93,134$ 2,453,796$ 658,374$ 8,892,424$ 12,097,728$
98
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Operating revenues:
Sales - retail 46,175$ -$ -$ -$ 46,175$
Sales - concessions 113 124,761 29,374 - 154,248
Memberships 21,467 89,769 - - 111,236
Admissions - 636,834 - 5,515 642,349
Building rental - 244,465 109,467 459,548 813,480
Rental of equipment - 12,060 160,573 - 172,633
Greens fees - - 221,618 - 221,618
Class registration & other fees 448,674 228,984 279,991 401 958,050
Total operating revenues 516,429 1,336,873 801,023 465,464 3,119,789
Operating expenses:
Cost of sales and services 17 75,116 14,891 - 90,024
Personal services 460,511 661,123 587,012 44,266 1,752,912
Contractual services 82,767 297,821 164,067 178,103 722,758
Commodities 69,581 133,441 116,913 11,921 331,856
Central Services 34,990 51,649 49,679 - 136,318
Depreciation 25,717 175,223 39,215 162,302 402,457
Total operating expenses 673,583 1,394,373 971,777 396,592 3,436,325
Operating income (loss) (157,154) (57,500) (170,754) 68,872 (316,536)
Nonoperating revenues (expenses):
Intergovernmental - - - 250,000 250,000
Investment income 2,314 11,409 4,976 - 18,699
Donations 11,303 - 12,097 - 23,400
Miscellaneous - 946 - - 946
Total nonoperating
revenues (expenses) 13,617 12,355 17,073 250,000 293,045
Income (loss) before transfers (143,537) (45,145) (153,681) 318,872 (23,491)
Transfers:
Transfers in 100,000 130,784 - 2,291,047 2,521,831
Change in net position (43,537) 85,639 (153,681) 2,609,919 2,498,340
Net position - January 1
as previously reported 404,432 2,769,799 1,079,816 6,416,386 10,670,433
Change in accounting principle (267,761) (401,642) (267,761) (133,881) (1,071,045)
Net position - January 1 as restated 136,671 2,368,157 812,055 6,282,505 9,599,388
Net position - December 31 93,134$ 2,453,796$ 658,374$ 8,892,424$ 12,097,728$
99
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2015
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Cash flows from operating activities:
Receipts from customers and users 516,169$ 1,337,705$ 803,468$ 363,669$ 3,021,011$
Payment to suppliers (183,078) (569,098) (341,155) (139,657) (1,232,988)
Payment to employees (460,062) (710,807) (590,731) (43,721) (1,805,321)
Donations received 11,303 - 12,097 - 23,400
Miscellaneous received - 946 - - 946
Net cash provided by (used in)
operating activities (115,668) 58,746 (116,321) 180,291 7,048
Cash flows from noncapital financing activities:
State Grant - - - 250,000 250,000
Transfer from other funds 100,000 130,784 - 2,291,047 2,521,831
Proceeds from interfund borrowing - 22,718 - - 22,718
Payment of interfund borrowing - - - (29,821) (29,821)
Net cash provided by noncapital
financing activities 100,000 153,502 - 2,511,226 2,764,728
Cash flows from capital and related financing activities:
Acquisition of capital assets - (34,481) (38,440) (2,282,415) (2,355,336)
Cash flows from investing activities:
Interest received 1,872 9,984 4,559 - 16,415
Net increase (decrease) in cash
and investments (13,796) 187,751 (150,202) 409,102 432,855
Cash and investments - January 1 310,158 1,648,005 904,577 - 2,862,740
Cash and investments - December 31 296,362$ 1,835,756$ 754,375$ 409,102$ 3,295,595$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) (157,154)$ (57,500)$ (170,754)$ 68,872$ (316,536)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation 25,717 175,223 39,215 162,302 402,457
Donations 11,303 - 12,097 - 23,400
Miscellaneous revenue (expense) - 946 - - 946
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables - 832 2,625 (101,795) (98,338)
Decrease (increase) in inventory (391) - - - (391)
Decrease (increase) in deferred outflows
of resources (28,041) (42,061) (28,041) (14,020) (112,163)
Increase (decrease) in accounts payable 4,490 (10,959) 5,240 48,076 46,847
Increase (decrease) in salaries payable (11,118) (26,603) (16,636) (2,076) (56,433)
Increase (decrease) in due to
other governments 178 (112) (845) 2,291 1,512
Increase (decrease) in unearned revenue (260) - (180) - (440)
Increase (decrease) in net OPEB obligation 1,268 1,646 1,604 - 4,518
Increase (decrease) in net pension liability (1,031) (1,547) (1,031) (516) (4,125)
Increase (decrease) in
compensated absences 5,057 (32,590) 6,071 - (21,462)
Increase (decrease) in deferred inflows
of resources 34,314 51,471 34,314 17,157 137,256
Total adjustments 41,486 116,246 54,433 111,419 323,584
Net cash provided by (used in)
operating activities (115,668)$ 58,746$ (116,321)$ 180,291$ 7,048$
Noncash investing activities:
Increase (decrease) in
fair value of investments (428) (4,223) (2,419) - (7,070)
Noncash noncapital financing activities:
Acquisition of capital assets with
contracts payable - (139,589) 25,040 1,318,550 1,204,001
100
Agency funds are used to report resources held by the City in a purely custodial
capacity. The following are agency 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.
Payroll Fund - This fund accounts for assets withheld from employee paychecks
that the City plans to remit to various third parties, including state & local
governments, insurance providers, and others.
FIDUCIARY FUNDS
Agency Funds
101
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102
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2015
Balance Balance
January 1 Additions Deductions December 31
POLICE SEIZURE
Assets:
Cash and investments 707$ -$ -$ 707$
Liabilities:
Due to other governmental units 707$ -$ -$ 707$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash and investments 370,007$ 646,685$ 641,077$ 375,615$
Liabilities:
Accounts payable 7,037$ 297,887$ 297,654$ 7,270$
Salaries payable 13,050 244,329 253,114 4,265
Due to other governmental units 349,920 104,469 90,309 364,080
Total Liabilities 370,007$ 646,685$ 641,077$ 375,615$
PAYROLL
Assets:
Cash and investments 19,293$ 18,797,406$ 18,801,659$ 15,040$
Liabilities:
Accounts payable 19,293$ 18,797,406$ 18,801,659$ 15,040$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and investments 390,007$ 19,444,091$ 19,442,736$ 391,362$
Liabilities:
Accounts payable 26,330$ 19,095,293$ 19,099,313$ 22,310$
Salaries payable 13,050 244,329 253,114 4,265
Due to other governmental units 350,627 104,469 90,309 364,787
Total Liabilities 390,007$ 19,444,091$ 19,442,736$ 391,362$
103
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104
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2012 2013 2014 2015 2016
Total tax capacity 109,012,566$ 106,529,983$ 108,069,277$ 117,907,214$ 125,663,820$
Increment valuation (3,917,958) (4,194,083) (4,948,237) (1,618,920) (2,493,368)
Contribution to fiscal
disparities pool (10,283,433) (8,831,694) (9,513,808) (9,626,075) (10,679,187)
Tax capacity used
for rate calculation 94,811,175 93,504,206 93,607,232 106,662,219 112,491,265
Fiscal disparities distribution 3,068,256 2,615,313 2,548,571 2,540,472 2,636,381
Adjusted net tax capacity 97,879,431$ 96,119,519$ 96,155,803$ 109,202,691$ 115,127,646$
Tax levies:
General fund 21,604,402$ 21,824,894$ 22,509,403$ 22,933,958$ 25,023,952$
Arts & culture fund - - - 20,000 20,000
Equipment 992,072 992,072 992,072 1,617,072 1,680,000
Debt service 3,040,890 3,314,581 3,325,597 4,510,380 4,503,521
Total certified tax levies 25,637,364 26,131,547 26,827,072 29,081,410 31,227,473
Referendum market value levy 610,862 615,837 627,800 618,600 571,650
Total levy 26,248,226$ 26,747,384$ 27,454,872$ 29,700,010$ 31,799,123$
Tax capacity rate:
General fund revenue 23.131 23.762 24.458 22.477 23.223
Bonds & interest 3.116 3.454 3.462 4.128 3.914
Total tax capacity rate 26.247 27.216 27.920 26.605 27.137
Market value rate 0.00667 0.00690 0.00695 0.00631 0.00550
105
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2015
Final
Interest Maturity Original
Rates Date Date Issue Redeemed
General Obligation Bonds:
GO Park & Recreation Refunding Bonds,
Series 2005A 3.50 - 4.00 07/19/05 02/01/17 5,375,000 3,680,000
GO Capital Improvement Plan, Series 2007A 4.00 - 4.25 05/24/07 02/01/28 5,865,000 1,300,000
GO Capital Improvement Plan, Series 2009A 3.00 - 4.40 04/29/09 02/01/30 14,000,000 2,130,000
GO Capital Improvement Plan, Series 2010A 2.00 - 4.00 11/18/10 02/01/21 8,285,000 2,720,000
GO Capital Improvement Plan, Series 2013A -
Refunding 3.00 - 3.50 10/10/13 02/01/30 5,710,000 310,000 GO Refunding, Series 2014B 3.00 12/11/14 02/01/17 1,105,000 -
Total General Obligation Bonds 40,340,000 10,140,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2008B 3.00 - 4.00 08/28/08 02/01/20 7,755,000 2,750,000
GO Permanent Improvement Revolving
Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 425,000
GO Permanent Improvement Revolving
Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 300,000
GO Permanent Improvement Revolving
Series 2012A 3.00 - 4.00 11/15/12 02/01/29 2,675,000 -
GO Permanent Improvement Revolving
Series 2012A - Refunding 3.00 - 4.00 11/15/12 02/01/19 1,990,000 320,000
GO Permanent Improvement Revolving
Series 2013A 3.00 - 3.50 10/10/13 02/01/30 2,555,000 -
GO Permanent Improvement Revolving
Series 2014B - Refunding 2.00 - 3.00 12/11/14 02/01/20 4,075,000 -
GO Permanent Improvement Revolving
Series 2015A 2.00 - 4.00 07/09/15 02/01/32 - -
GO Permanent Improvement RevolvingSeries 2015A - Parking 2.00 - 4.00 07/09/15 02/01/36 - -
Total PIR Bonds 24,675,000 3,795,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2005 3.00 - 4.13 09/13/05 05/01/26 5,425,000 1,665,000
Taxable Public Project Revenue, Series 2009A 2.10 - 4.55 11/24/09 02/01/30 2,595,000 950,000
HRA Public Project Revenue, Series 2014A 2.00 - 3.625 07/15/14 02/01/35 16,155,000 -
HRA Public Project Revenue, Series 2015A -Refunding 2.50 - 3.00 07/09/15 05/01/26 - -
Total Public Project Revenue Bonds 24,175,000 2,615,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A 7.00 02/25/12 01/01/23 33,690 6,738 Edina Emerald Energy Progrm Revenue, 2012B 5.50 08/28/12 01/01/18 40,030 16,012
Total Public Project Revenue Bonds 73,720 22,750
Revenue Bonds:
Recreational Facility Bonds, Series 2009B 2.00 - 3.00 04/29/09 01/01/17 2,010,000 1,770,000
Recreational Facility Bonds, Series 2009C 2.00 - 4.00 12/10/09 02/01/30 2,440,000 380,000
Recreational Facility Bonds, Series 2012B .45 - 1.60 11/15/12 02/01/20 815,000 110,000
Recreational Facility Bonds, Series 2012C 2.00 - 3.00 11/15/12 02/01/33 2,100,000 -
Recreational Facility Bonds, Series 2013B 3.00 - 3.45 10/10/13 02/01/29 1,125,000 -
Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 - -
Utility Revenue Bonds, Series 2007B 4.00 05/24/07 02/01/17 8,210,000 5,430,000
Utility Revenue Bonds, Series 2008A 3.00 - 4.00 08/28/08 02/01/19 13,985,000 6,640,000
Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 2,015,000
Utility Revenue Bonds, Series 2012A 3.00 - 4.00 11/15/12 02/01/23 6,100,000 470,000
Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 -
Utility Revenue Bonds, Series 2014B - Refunding 3.00 12/11/14 02/01/17 1,830,000 -
Utility Revenue Bonds, Series 2014B - Refunding 3.00 12/11/14 02/01/19 5,710,000 -
Utility Revenue Bonds, Series 2015A 2.00 - 4.00 07/09/15 02/01/25 - -
Total Public Project Revenue Bonds 61,235,000 16,815,000
Total - Bonded indebtedness 150,498,720$ 33,387,750$
Prior Years
106
Principal Interest Interest
Outstanding Payable Due Due Payable
12/31/2014 Issued Payments 12/31/2015 In 2016 In 2016 to Maturity
1,695,000 - 1,695,000 - - - -
4,565,000 - 250,000 4,315,000 260,000 171,744 1,263,785
11,870,000 - 570,000 11,300,000 590,000 418,324 3,736,508
5,565,000 - 705,000 4,860,000 730,000 179,800 606,400
5,400,000 - 270,000 5,130,000 280,000 148,425 1,241,413 1,105,000 - - 1,105,000 550,000 24,900 33,225
30,200,000 - 3,490,000 26,710,000 2,410,000 943,193 6,881,331
5,005,000 - 5,005,000 - - - -
1,880,000 - 220,000 1,660,000 225,000 38,950 160,475
3,020,000 - 305,000 2,715,000 315,000 65,350 309,550
2,675,000 - 140,000 2,535,000 145,000 79,250 583,275
1,670,000 - 345,000 1,325,000 355,000 45,900 97,700
2,555,000 - - 2,555,000 140,000 73,900 619,326
4,075,000 - - 4,075,000 745,000 102,275 275,775
- 6,545,000 - 6,545,000 - 215,061 2,156,424
- 2,495,000 - 2,495,000 - 84,942 1,032,843
20,880,000 9,040,000 6,015,000 23,905,000 1,925,000 705,628 5,235,368
3,760,000 - 3,760,000 - - - -
1,645,000 - - 1,645,000 - 66,810 540,619
16,155,000 - - 16,155,000 615,000 490,869 5,806,654
- 3,490,000 - 3,490,000 285,000 96,800 570,313
21,560,000 3,490,000 3,760,000 21,290,000 900,000 654,479 6,917,586
26,952 - 3,369 23,583 - 1,769 7,547 24,018 - 8,006 16,012 - 1,101 1,981
50,970 - 11,375 39,595 - 2,870 9,528
240,000 - 75,000 165,000 80,000 3,750 5,025
2,060,000 - 100,000 1,960,000 105,000 72,775 629,325
705,000 - 125,000 580,000 125,000 6,249 18,368
2,100,000 - - 2,100,000 - 53,794 633,297
1,125,000 - 50,000 1,075,000 65,000 32,490 256,208
- 2,140,000 - 2,140,000 - 62,228 570,706
2,780,000 - 2,780,000 - - - -
7,345,000 - 7,345,000 - - - -
9,215,000 - 1,065,000 8,150,000 1,090,000 188,649 787,226
5,630,000 - 540,000 5,090,000 555,000 165,250 687,575
5,680,000 - 570,000 5,110,000 520,000 120,750 632,025
1,830,000 - - 1,830,000 895,000 41,475 55,500
5,710,000 - - 5,710,000 1,340,000 151,200 350,700
- 5,235,000 - 5,235,000 525,000 146,913 851,464
44,420,000 7,375,000 12,650,000 39,145,000 5,300,000 1,045,523 5,477,419
117,110,970$ 19,905,000$ 25,926,375$ 111,089,595$ 10,535,000$ 3,351,693$ 24,521,232$
2015
107
CITY OF EDINA, MINNESOTA
SCHEDULE OF BALANCE SHEET ACCOUNTS
TAX INCREMENT FINANCING DISTRICTS
December 31, 2015
Total
District District District District District Tax Increment
No. 1202 No. 1203 No. 1207 No. 1208 No. 1211 Financing Districts
Assets
Cash and Investments 292,780$ 5,767,975$ 351,713$ 1,564,647$ 47,574$ 8,024,689$
Accrued interest 931 16,122 919 2,471 - 20,443
Accounts receivable - - - - 44,308 44,308
Due from other districts - 4,450,000 - - - 4,450,000
Due from other governments - - - 3,411 - 3,411
Total assets 293,711$ 10,234,097$ 352,632$ 1,570,529$ 91,882$ 12,542,851$
Liabilities
Accounts payable 45,468$ 23,227$ 263$ 49$ -$ 69,007$
Salaries payable - 1,420 - 232 232 1,884
Due to other districts - - - 4,350,000 100,000 4,450,000
Total liabilities 45,468 24,647 263 4,350,281 100,232 4,520,891
Fund balance:
Restricted 248,243 10,209,450 352,369 (2,779,752) (8,350) 8,021,960
Total liabilities and
fund balance 293,711$ 10,234,097$ 352,632$ 1,570,529$ 91,882$ 12,542,851$
108
CITY OF EDINA, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TAX INCREMENT FINANCING DISTRICTS
For The Year Ended December 31, 2015
Total
District District District District District Tax Increment
No. 1202 No. 1203 No. 1207 No. 1208 No. 1211 Financing Districts
Revenues:
Tax increment collections -$ -$ -$ 1,792,896$ -$ 1,792,896$
Charges for services - - - - 44,308 44,308
Investment income 1,732 16,500 2,103 7,229 - 27,564
Total revenues 1,732 16,500 2,103 1,800,125 44,308 1,864,768
Expenditures:
Current:
General government 154,632 236,567 12,346 20,965 2,206 426,716
Capital outlay:
General government - 676,502 1,537 - - 678,039
Public works - 668,051 - - - 668,051
Total expenditures 154,632 1,581,120 13,883 20,965 2,206 1,772,806
Revenues over
(under) expenditures (152,900) (1,564,620) (11,780) 1,779,160 42,102 91,962
Other financing sources (uses):
Interfund loan interest - 190,000 - (190,000) - -
Net increase (decrease)
in fund balance (152,900) (1,374,620) (11,780) 1,589,160 42,102 91,962
Fund balance - January 1 401,143 11,584,070 364,149 (4,368,912) (50,452) 7,929,998
Fund balance - December 31 248,243$ 10,209,450$ 352,369$ (2,779,752)$ (8,350)$ 8,021,960$
109
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110
Contents
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
STATISTICAL SECTION
This part of the City's comprehensive annual 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.
Page
112
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
These schedules contain trend information to help the
reader understand how the City's financial performance
and well-being have changed over time.
These schedules contain information to help the reader
assess the City's most significant local revenue source,
the property tax.
These schedules contain information to help the reader
assess the affordability of the City's current levels of
outstanding debt and the City's ability to issue additional
debt in the future.
These schedules offer demographic and economic
indicators to help the reader understand the
environment within which the City's financial activities
take place.
These schedules contain service and infrastructure data
to help the reader understand how the information in the
City's financial report relates to the services the City
provides and the activities it performs.
120
124
129
131
111
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2006 2007 2008 2009
Governmental activities
Net investment in capital assets 69,814,012$ 67,680,882$ 71,601,227$ 69,622,370$
Restricted - - 3,362,446 7,132,865
Unrestricted 15,280,058 25,136,312 29,577,462 30,705,600
Total governmental
activities net position 85,094,070$ 92,817,194$ 104,541,135$ 107,460,835$
Business-type activities
Net investment in capital assets 46,981,755$ 43,046,160$ 46,851,736$ 47,333,794$
Restricted - - 954,486 624,837
Unrestricted 6,379,515 13,649,355 12,071,776 15,158,720
Total business-type
activities net position 53,361,270$ 56,695,515$ 59,877,998$ 63,117,351$
Primary government
Net investment in capital assets 116,795,767$ 110,727,042$ 118,452,963$ 116,956,164$
Restricted - - 4,316,932 7,757,702
Unrestricted 21,659,573 38,785,667 41,649,238 45,864,320
Total primary government
net position 138,455,340$ 149,512,709$ 164,419,133$ 170,578,186$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of
this change in accounting principle.
b The City implemented GASB 68 in fiscal year 2015. Prior year information has not been restated as a result of
this change in accounting principle.
Fiscal Year
112
2010 2011 2012 2013a 2014 2015b
69,783,162$ 75,045,018$ 78,644,392$ 83,842,970$ 85,708,114$ 85,838,618$
9,952,443 22,915,776 23,215,910 20,289,579 18,268,724 16,925,171
41,709,528 29,544,149 29,587,700 33,242,317 31,316,605 21,957,830
121,445,133$ 127,504,943$ 131,448,002$ 137,374,866$ 135,293,443$ 124,721,619$
48,807,806$ 56,877,100$ 63,766,144$ 66,126,387$ 75,803,672$ 83,395,794$
618,852 623,099 876,909 611,377 619,295 793,664
17,041,122 12,926,674 14,390,609 16,867,459 21,176,026 16,405,405
66,467,780$ 70,426,873$ 79,033,662$ 83,605,223$ 97,598,993$ 100,594,863$
118,590,968$ 131,922,118$ 142,410,536$ 149,969,357$ 161,511,786$ 169,234,412$
10,571,295 23,538,875 24,092,819 20,900,956 18,888,019 17,718,835
58,750,650 42,470,823 43,978,309 50,109,776 52,492,631 38,363,235
187,912,913$ 197,931,816$ 210,481,664$ 220,980,089$ 232,892,436$ 225,316,482$
Fiscal Year
113
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2006 2007 2008 2009
Expenses
Governmental activities:
General government 5,414,961$ 7,039,298$ 6,836,248$ 7,362,560$
Public safety 13,300,351 13,743,194 14,833,647 14,751,479
Public works 8,973,031 8,757,022 9,046,873 8,993,290
Parks 5,341,682 5,025,560 5,971,565 7,732,777
Interest on long-term debt 2,973,749 1,887,633 1,923,821 2,129,490
Total governmental activities expenses 36,003,774 36,452,707 38,612,154 40,969,596
Business-type activities:
Utilities 9,234,651 10,036,844 10,625,811 11,833,994
Liquor 9,968,963 10,361,998 11,049,223 11,449,194
Aquatic center 795,614 780,981 787,663 798,369
Golf course 3,652,169 3,621,977 3,612,482 3,588,831
Arena 1,542,098 1,538,407 1,689,660 1,665,082
Community activity centers 2,506,551 2,630,127 2,813,189 2,971,293
Total business-type activities expenses 27,700,046 28,970,334 30,578,028 32,306,763
Total primary government expenses 63,703,820$ 65,423,041$ 69,190,182$ 73,276,359$
Program Revenues
Governmental activities:
Charges for services:
General government 731,613$ 784,659$ 840,070$ 811,087$
Public safety 6,146,114 5,632,642 5,839,683 5,081,563
Other activities 793,796 736,329 763,130 804,500
Operating grants and contributions 1,423,302 1,384,024 1,170,183 1,377,785
Capital grants and contributions 4,013,617 4,299,509 7,710,015 2,582,999
Total governmental activities program revenues 13,108,442 12,837,163 16,323,081 10,657,934
Business-type activities:
Charges for services:
Utilities 11,421,474 13,125,773 13,713,249 14,858,488
Liquor 11,029,445 11,436,175 12,122,599 12,655,777
Aquatic center 867,626 868,833 925,388 859,816
Golf course 3,646,620 3,630,538 3,680,584 3,660,466
Arena 1,418,555 1,414,173 1,399,599 1,414,410
Community activity centers 1,918,598 2,102,938 2,117,619 2,192,274
Operating grants and contributions 122,358 127,492 147,456 135,917
Total business-type activities program revenues 30,424,676 32,705,922 34,106,494 35,777,148
Total primary government program revenues 43,533,118$ 45,543,085$ 50,429,575$ 46,435,082$
Net (Expense)/Revenue
Governmental activities (22,895,332)$ (23,615,544)$ (22,289,073)$ (30,311,662)$
Business-type activities 2,724,630 3,735,588 3,528,466 3,470,385
Total primary government net expense (20,170,702)$ (19,879,956)$ (18,760,607)$ (26,841,277)$
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes 20,414,298$ 21,459,001$ 22,242,276$ 23,834,274$
Tax increment collections 7,228,002 7,793,577 8,578,434 7,587,386
Franchise taxes 499,206 570,871 647,466 667,791
Lodging taxes - - - -
Unrestricted investment earnings 1,230,264 1,581,702 1,185,899 387,177
Gain on disposal of capital assets 8,418 58,377 1,265 11,709
Insurance recovery - - - -
Transfers 838,230 919,625 967,800 743,025
Total governmental activities 30,218,418 32,383,153 33,623,140 33,231,362
Business-type activities:
Property taxes -$ -$ -$ 300,372$
Unrestricted investment earnings 283,771 510,678 607,312 209,371
Gain (loss) on disposal of capital assets 25,210 7,604 14,505 2,250
Transfers (838,230) (919,625) (967,800) (743,025)
Total business-type activities (529,249) (401,343) (345,983) (231,032)
Total primary government 29,689,169$ 31,981,810$ 33,277,157$ 33,000,330$
Change in Net Position
Governmental activities 7,323,086$ 8,767,609$ 11,334,067$ 2,919,700$
Business-type activities 2,195,381 3,334,245 3,182,483 3,239,353
Total primary government 9,518,467$ 12,101,854$ 14,516,550$ 6,159,053$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of this change in accounting principle.
b The City completed a major departmental reorganization in 2014, moving parks maintenance activities from parks to public works. Prior year
information has not been modified as a result of this change.
c The City implemented GASB 68 in fiscal year 2015. Prior year information has not been restated as a result of this change in accounting principle.
Fiscal Year
114
2010 2011 2012 2013a 2014b 2015c
6,961,082$ 7,013,231$ 12,598,979$ 8,256,261$ 8,522,319$ 8,518,236$
15,543,594 16,024,575 16,598,423 17,117,693 18,145,498 19,507,770
8,558,363 9,193,336 9,437,285 11,502,250 15,553,852 15,284,777
5,608,758 5,540,585 5,904,724 6,132,709 3,330,781 3,385,367
2,528,424 2,339,370 2,222,392 2,024,749 1,989,863 2,180,678
39,200,221 40,111,097 46,761,803 45,033,662 47,542,313 48,876,828
11,848,538 12,130,685 12,610,875 13,748,186 14,207,197 14,963,304
11,594,643 11,727,106 11,740,744 12,261,413 12,393,218 11,818,602
769,608 718,027 866,944 822,932 827,485 872,960
3,561,573 3,390,949 3,293,192 3,199,815 3,342,544 3,409,343
1,527,536 1,689,001 2,182,200 2,272,510 2,375,173 2,642,097
2,965,243 2,998,915 2,842,139 2,967,115 2,975,782 3,436,325
32,267,141 32,654,683 33,536,094 35,271,971 36,121,399 37,142,631
71,467,362$ 72,765,780$ 80,297,897$ 80,305,633$ 83,663,712$ 86,019,459$
946,107$ 969,745$ 1,142,984$ 1,259,908$ 1,529,555$ 1,322,430$
5,448,505 5,988,485 6,549,929 7,410,755 8,102,352 8,683,465
723,559 775,676 913,864 846,999 960,261 1,158,207
1,162,411 1,392,892 1,685,026 2,283,007 1,578,538 3,122,178
13,325,431 5,770,912 9,137,011 6,372,735 8,244,695 10,044,077
21,606,013 14,897,710 19,428,814 18,173,404 20,415,401 24,330,357
15,036,016 15,873,937 17,729,589 17,831,225 17,550,802 19,335,443
12,857,064 13,172,484 13,230,941 13,711,557 13,515,168 12,462,387
945,529 913,383 1,001,946 928,055 918,412 971,936
3,443,204 3,285,741 3,225,591 2,711,743 3,229,348 2,857,190
1,301,506 1,315,435 1,452,435 1,942,971 2,092,567 2,316,853
2,194,476 2,331,136 2,399,090 2,625,633 2,583,257 3,119,789
373,230 135,428 1,042,195 516,242 428,416 595,141
36,151,025 37,027,544 40,081,787 40,267,426 40,317,970 41,658,739
57,757,038$ 51,925,254$ 59,510,601$ 58,440,830$ 60,733,371$ 65,989,096$
(17,594,208)$ (25,213,387)$ (27,332,989)$ (26,860,258)$ (27,126,912)$ (24,546,471)$
3,883,884 4,372,861 6,545,693 4,995,455 4,196,571 4,516,108
(13,710,324)$ (20,840,526)$ (20,787,296)$ (21,864,803)$ (22,930,341)$ (20,030,363)$
25,122,113$ 25,040,871$ 25,884,662$ 26,894,161$ 27,062,224$ 29,632,072$
4,488,073 4,083,345 3,536,935 3,981,938 5,052,705 1,792,896
692,288 722,160 815,530 1,891,967 2,055,396 2,089,038
- - - - 11,301 22,716
474,444 601,250 341,986 (96,390) 440,051 195,620
35,594 131,365 - 16,654 29,037 41,900
- - - 816,654 - -
765,994 694,206 696,935 133,907 (9,605,225) (2,230,966)
31,578,506 31,273,197 31,276,048 33,638,891 25,045,489 31,543,276
-$ -$ -$ -$ -$ -$
205,965 280,438 113,177 (77,848) 191,974 91,907
26,574 - 2,644,854 17,587 - 39,427
(765,994) (694,206) (696,935) (133,907) 9,605,225 2,230,966
(533,455) (413,768) 2,061,096 (194,168) 9,797,199 2,362,300
31,045,051$ 30,859,429$ 33,337,144$ 33,444,723$ 34,842,688$ 33,905,576$
13,984,298$ 6,059,810$ 3,943,059$ 6,778,633$ (2,081,423)$ 6,996,805$
3,350,429 3,959,093 8,606,789 4,801,287 13,993,770 6,878,408
17,334,727$ 10,018,903$ 12,549,848$ 11,579,920$ 11,912,347$ 13,875,213$
Fiscal Year
115
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2006 2007 2008 2009a
General fund
Reserved 36,849$ 28,637$ 13,982$ 18,241$
Unreserved 13,797,189 14,078,220 14,365,021 12,031,358
Nonspendable - - - -
Restricted - - - -
Assigned - - - -
Unassigned - - - -
Total general fund 13,834,038$ 14,106,857$ 14,379,003$ 12,049,599$
All other governmental funds
Reserved 2,682,238$ 6,247,539$ 8,467,918$ 15,223,353$
Unreserved, reported in:
Special revenue funds 13,179,904 14,750,448 14,950,538 12,813,439
Capital projects funds 3,160,085 5,853,322 4,270,440 6,683,668
Restricted, reported in:
Special revenue funds - - - -
Debt service funds - - - -
Construction funds - - - -
Assigned, reported in:
Capital projects funds - - - -
Total all other governmental funds 19,022,227$ 26,851,309$ 27,688,896$ 34,720,460$
a The substantial decrease in general fund unreserved fund balance in 2009 is due to the transfer
of the equipment replacement program to the construction fund.
The substantial increase in other governmental funds reserved fund balance in 2009 is due to
unspent bond proceeds related to the new Public Works Facility, which is under construction.
b The City implemented GASB Statement No. 54, "Fund Balance Reporting and Governmental
Fund Type Definitions" in 2011. The City did not apply the statement retroactively.c The substantial increase in other governmental funds restricted fund balance in 2014 is due to
unspent bond proceeds related to the current refunding that took place on February 1, 2015.
Fiscal Year
116
2010 2011b 2012 2013 2014c 2015
10,258$ -$ -$ -$ -$ -$
12,868,952 - - - - -
- 10,871 413,200 13,322 240,291 529,513
- 178,295 880,395 185,395 757,673 417,673
- 1,539,286 1,643,077 1,559,461 1,566,329 1,547,398
- 11,744,764 11,902,462 12,573,457 11,429,444 11,825,799
12,879,210$ 13,473,216$ 14,839,134$ 14,331,635$ 13,993,737$ 14,320,383$
9,460,834$ -$ -$ -$ -$ -$
15,333,460 - - - - -
12,150,968 - - - - -
- 17,178,857 13,185,962 13,040,516 9,719,309 9,405,757
- 8,068,183 9,704,408 6,246,769 12,678,291 7,134,575
- 2,087,548 2,759,463 3,318,947 6,598,832 551,132
- 8,098,935 7,159,890 8,354,268 7,046,610 13,127,881
36,945,262$ 35,433,523$ 32,809,723$ 30,960,500$ 36,043,042$ 30,219,345$
Fiscal Year
117
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2006 2007a 2008 2009
Revenues
General property taxes 20,414,298$ 21,459,001$ 22,242,276$ 23,834,274$
Tax increment collections 7,228,002 7,793,577 8,578,434 7,587,386
Special assessments 1,751,219 1,750,444 2,442,490 2,703,833
Franchise taxes 499,206 570,871 647,466 667,791
Lodging fees - - - -
License and permits 3,488,897 2,909,521 2,915,455 2,104,967
Intergovernmental 2,773,350 3,699,006 3,005,883 1,507,170
Charges for services 2,691,354 2,748,709 3,093,941 2,905,410
Fines and forfeitures 1,023,935 971,486 1,073,174 1,224,983
Investment income 1,230,264 1,581,702 1,185,899 387,177
Rental of property 310,145 355,734 255,607 343,616
Parkland dedication - - - -
Other revenues 246,797 225,839 126,723 160,035
Total revenues 41,657,467 44,065,890 45,567,348 43,426,642
Expenditures
General government 5,995,804 6,544,307 6,235,352 6,895,329
Public safety 12,431,114 12,985,215 13,788,797 13,692,686
Public works 5,233,907 5,787,619 6,189,594 5,911,758
Parks 3,300,375 3,455,789 3,693,595 3,688,063
Capital outlay 8,980,526 11,991,122 14,666,907 22,997,065
Debt service
Principal 5,985,000 6,190,000 7,090,000 7,415,000
Interest and other charges 2,107,036 1,677,770 1,967,021 1,841,342
Total expenditures 44,033,762 48,631,822 53,631,266 62,441,243
Revenues over (under) expenditures (2,376,295) (4,565,932) (8,063,918) (19,014,601)
Other Financing Sources (Uses)
Transfers in 6,865,258 7,290,391 7,983,585 11,347,773
Transfers out (6,027,028) (6,370,766) (7,015,785) (10,604,748)
Sale of capital assets 54,457 66,845 96,825 34,592
Insurance recovery - - - -
Bonds issued - 11,735,000 7,755,000 22,950,000
Premium on bonds issued - - - 64,765
Discount on bonds issued - (53,637) (35,848) (75,621)
Refunding bonds issued - - - -
Payment to refunding escrow - - - -
Principal paid by escrow (9,035,000) - - -
Total other financing sources (uses) (8,142,313) 12,667,833 8,783,777 23,716,761
Net change in fund balances (10,518,608)$ 8,101,901$ 719,859$ 4,702,160$
Debt service as a percentage of
noncapital expenditures 23.1% 21.5% 22.6% 21.7%
a The substantial change in debt service as a percentage of noncapital expenditures in 2007 is due
to a change in the way this ratio is calculated. The City did not recalculate previously reported ratios.
Fiscal Year
118
2010 2011 2012 2013 2014 2015
25,122,113$ 24,972,166$ 25,838,422$ 26,891,756$ 26,988,493$ 29,535,270$
4,488,073 4,083,345 3,536,935 3,981,938 5,052,705 1,792,896
6,746,186 4,502,112 4,975,641 4,884,510 4,606,010 4,132,128
692,288 722,160 815,530 1,891,967 2,055,396 2,089,038
- - - - 11,301 22,716
2,410,314 2,724,763 3,155,351 4,150,512 4,583,183 4,907,364
3,726,849 3,059,964 2,032,966 2,509,166 3,961,509 6,093,966
3,014,894 3,181,961 3,708,482 3,667,612 4,270,720 4,414,991
1,203,767 1,243,426 1,195,054 1,109,710 1,163,907 1,195,271
474,444 601,250 341,986 (96,390) 440,051 195,314
426,517 539,091 506,276 518,862 546,874 416,522
- - 702,100 - 757,278 800,000
413,400 156,231 240,841 278,607 78,775 361,425
48,718,845 45,786,469 47,049,584 49,788,250 54,516,202 55,956,901
6,523,398 5,739,481 6,624,573 7,351,556 7,625,826 6,337,944
14,177,387 14,668,772 14,985,068 15,859,622 16,647,821 17,537,528
5,898,023 6,000,539 6,277,506 7,018,614 10,201,335 10,578,472
3,524,950 3,633,922 3,852,260 3,915,568 1,341,884 1,416,858
13,505,827 14,235,496 13,622,443 10,690,207 19,883,144 19,912,565
2,975,000 4,480,000 6,620,000 14,531,375 4,096,375 13,276,375
2,584,006 2,278,068 2,292,394 2,270,259 1,923,647 2,375,613
49,188,591 51,036,278 54,274,244 61,637,201 61,720,032 71,435,355
(469,746) (5,249,809) (7,224,660) (11,848,951) (7,203,830) (15,478,454)
2,903,762 5,615,669 4,495,940 3,472,964 1,404,975 3,232,770
(2,137,768) (4,921,463) (3,799,005) (3,339,057) (11,010,200) (6,472,066)
134,329 209,773 94,975 61,642 70,603 78,509
- - - 816,654 - 167,167
2,535,000 3,320,000 2,748,720 2,555,000 16,155,000 9,040,000
898,658 108,097 436,148 275,360 327,987 492,838
- - - (60,334) (179,891) (47,815)
8,285,000 - 1,990,000 5,710,000 5,180,000 3,490,000
(9,094,822) - - - - -
- - - - - -
3,524,159 4,332,076 5,966,778 9,492,229 11,948,474 9,981,403
3,054,413$ (917,733)$ (1,257,882)$ (2,356,722)$ 4,744,644$ (5,497,051)$
15.4% 17.8% 19.4% 32.2% 13.7% 28.9%
Fiscal Year
119
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
City Tax City
Used Adjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
8,713,166$ 8,541,954$ 8,536,086$ 101,948$ 86,860$ 89,272$ 22.613% 0.00703% 2.317$
9,619,356 9,456,650 9,451,668 113,429 96,170 98,765 21.150% 0.00641% 2.172
9,986,738 9,933,166 9,928,907 120,084 100,954 103,850 21.197% 0.00601% 2.204
10,112,498 10,091,005 10,079,499 122,532 101,831 105,130 22.447% 0.00597% 2.334
9,960,341 9,960,341 9,949,807 120,817 104,914 108,452 22.972% 0.00606% 2.501
9,441,688 9,441,688 9,431,941 113,981 98,897 102,319 24.660% 0.00654% 2.672
9,179,305 9,179,305 9,025,565 109,013 94,811 97,879 26.247% 0.00667% 2.799
8,955,431 8,955,431 8,798,601 106,530 93,504 96,120 27.216% 0.00690% 2.921
9,065,550 9,065,550 8,911,695 108,069 93,607 96,156 27.920% 0.00695% 2.961
9,837,972 9,837,972 9,701,677 117,907 106,662 109,203 26.605% 0.00631% 2.953
Source: Hennepin County Taxpayer Services.
a Property in the City is assessed annually. Assessed value is equal to market value, although taxable value may be different, as shown.
The City receives reports from Hennepin County showing total market value, but not separated by property classification.
b This value is estimated by the City Finance Department by taking City taxes as a rate of estimated market value (rate per $1,000 of
assessed value). The property tax system in Minnesota uses a tax capacity system whereby each parcel is assigned a tax capacity
based on taxable value and class. In Minnesota, local taxes are usually expressed as a percentage of this calculated tax capacity
(see column titled "City Tax Capacity Rate"). Therefore, this rate is only theoretical and shown for comparative purposes only.
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2012
Fiscal Direct
2010
2011
2006
2007
2008
2009
2015
Year
2013
2014
120
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
Basic Debt Total Tax Direct &
Rate Rate Capacity RMV Hennepin Tax Cap. RMV Other Overlap
20.755% 1.858% 22.613% 0.007% 41.016% 19.226% 0.154% 8.104% 90.959%
19.636% 1.514% 21.150% 0.006% 39.110% 18.244% 0.147% 8.417% 86.921%
19.563% 1.634% 21.197% 0.006% 38.571% 16.951% 0.177% 8.546% 85.265%
20.204% 2.243% 22.447% 0.006% 40.413% 17.766% 0.183% 8.413% 89.039%
20.004% 2.968% 22.972% 0.006% 42.640% 18.746% 0.194% 9.431% 93.789%
21.548% 3.112% 24.660% 0.007% 45.840% 21.786% 0.196% 10.489% 102.775%
23.131% 3.116% 26.247% 0.007% 48.231% 27.565% 0.215% 10.911% 112.954%
23.762% 3.454% 27.216% 0.007% 49.461% 27.762% 0.217% 11.483% 115.922%
24.458% 3.462% 27.920% 0.007% 49.959% 27.556% 0.223% 12.051% 117.486%
22.477% 4.128% 26.605% 0.006% 46.398% 27.344% 0.215% 11.100% 111.447%
Source: Hennepin County Taxpayer Services.
RMV: Referendum Market Value
Geographic boundaries for overlapping district are not identical to the City's boundaries. City boundaries contain six different
school districts but only ISD #273 is shown here. Other districts include Mosquito Control, Met Council, Metro Transit,
Hennepin Parks, Park Museum and Regional Railroad Authority. In addition, there are two watershed districts in the City,
Nine Mile Creek and Minnehaha Creek, and rates for Nine Mile are included in Other. Total rates do not include RMV rates.
2015
2010
2011
2006
2007
2008
2009
2012
2013
2014
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
121
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage Percentage
of Total of Total
Tax Capacity Rank Capacity Tax Capacity Rank Capacity
Southdale Shopping Center 2,520,750$ 1 2.14% 3,497,098$ 1 3.43%
Galleria Shopping Center 1,977,317 2 1.68% 1,525,906 2 1.50%
Southdale Medical Building 904,365 3 0.77% 361,116 8 0.35%
Centennial Lakes Retail 831,684 4 0.71% - 0.00%
Centennial Lakes Phase V 813,134 5 0.69% 581,944 4 0.57%
Centennial Lakes Phase IV 797,386 6 0.68% 570,650 5 0.56%
Southdale Office Park 775,872 7 0.66% 738,790 3 0.72%
The District 520,998 8 0.44% - 0.00%
7700 France 520,046 9 0.44% 461,750 7 0.45%
Centennial Lakes Phase III 508,896 10 0.43% 356,748 9 0.35%
May Department Stores - 0.00% 513,070 6 0.50%
Centennial Lakes Phase II - 0.00% 344,800 10 0.34%
Totals 10,170,448$ 8.63% 8,951,872$ 8.78%
Source: City of Edina Assessing Office
20062015
Taxpayer
122
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Total Collections in
Tax Percentage Subsequent Percentage
Levy Amount of Levy Years Amount of Levy
20,820,130$ 20,310,889$ 97.55% 66,489$ 20,377,378$ 97.87%
21,530,528 21,347,789 a 99.15%a 65,836 21,413,625 99.46%
22,605,669 22,178,719 b 98.11%b 174,769 22,353,488 98.88%
24,153,933 23,484,137 c 97.23%c 69,437 23,553,574 97.51%
25,492,973 24,904,346 97.69% (310,913) 24,593,433 96.47%
25,786,217 25,067,625 97.21% (209,354) 24,858,271 96.40%
26,248,226 25,983,685 98.99% (148,530) 25,835,155 98.43%
26,747,384 26,545,984 99.25% (178,983) 26,367,001 98.58%
27,454,872 27,326,092 99.53% (28,622) 27,297,470 99.43%
29,700,010 29,497,362 99.32% - 29,497,362 99.32%
Source: Hennepin County Taxpayer Services.
a In 2007 the State of Minnesota reimbursed the City for MVHC after five years of not making payments.
b In 2008 the State of Minnesota reimbursed the City for only 50% of MVHC.
c In 2009 the State of Minnesota once again quit reimbursing the City for MVHC.
2015
Collected within the
Fiscal Year of the Levy
2009
2006
2007
2008
2013
2012
2014
Total Collections to Date
Taxes
Payable
2010
2011
123
CITY OF EDINA, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
General Public Tax Permanent EEEP Rec. Utility Total Percentage
Obligation Project Increment Improvement Revenue Facility Revenue Primary of Personal Per
Debt Revenue Bonds Revolving Bonds Bonds Bonds Government Income Capita
a
5,687$ 15,913$ 20,402$ 1,453$ -$ 4,577$ 3,534$ 51,566$ 2.18% 1,100$
10,963 15,235 15,628 7,152 - 3,675 11,133 63,786 2.39% 1,355
10,393 14,531 10,000 14,719 - 2,835 23,779 76,257 2.99% 1,583
24,057 22,442 4,115 14,574 - 4,479 21,713 91,380 3.54% 1,897
32,595 13,282 3,314 16,254 - 4,059 19,507 89,011 3.39% 1,857
30,417 13,077 2,477 18,353 - 3,569 28,800 96,693 3.66% 2,004
28,318 11,787 550 22,067 74 5,952 33,160 101,908 3.71% 2,087
32,035 5,627 - 18,889 62 6,540 29,635 92,788 2.91% 1,885
30,806 21,445 - 21,554 51 6,249 39,633 119,738 3.97% 2,382
27,225 21,300 - 24,776 40 8,055 32,575 113,971 3.66% 2,268
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 data from U.S. Census Bureau/Metropolitan Council found on page 129.
Business-Type Activities
Year
Fiscal
2015
2006
2007
2008
2009
2012
2013
2010
2011
2014
Governmental Activities
124
CITY OF EDINA, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
Less: Amounts Available Percentage of
General Obligation Debt a in Debt Service Fund b Total Property Value
c Per Capita
5,687$ 2,194$ 3,493$ 0.04% 121$
10,963 2,891 8,072 0.08% 233
10,393 3,669 6,724 0.07% 216
24,057 5,454 18,603 0.18% 499
32,595 6,105 26,490 0.27% 680
30,417 8,068 22,349 0.24% 630
28,318 9,704 18,614 0.20% 580
32,035 6,247 25,788 0.29% 651
30,806 12,678 18,128 0.20% 613
27,225 7,135 20,090 0.20% 542
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.
Year
Fiscal
2010
2015
2013
2012
2011
2006
2007
2008
2009
2014
125
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2015
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 689,516,184$ 8.30% 57,229,843$
Hennepin Suburban Park District 49,596,497 11.32% 5,614,323
Hennepin Regional Rail Authority 34,389,498 11.32% 3,892,891
School Districts:
ISD No. 273 (Edina) 174,826,586 98.35% 171,941,947
ISD No. 270 (Hopkins) 165,308,887 7.50% 12,398,167
ISD No. 271 (Bloomington) 13,964,814 0.02% 2,793
ISD No. 272 (Eden Prairie) 57,992,207 0.93% 539,328
ISD No. 280 (Richfield) 14,304,017 31.20% 4,462,853
ISD No. 283 (St. Louis Park) 39,266,728 0.02% 7,853
Metro Council 67,164,480 3.86% 2,592,549
Total Overlapping Debt 1,306,329,898 258,682,547
City of Edina 73,340,777 100.00% 73,340,777
Total Overlapping and Direct Debt 1,379,670,675$ 332,023,324$
Ratio of debt per capita (50,261 population) 6,606$
Ratio of debt to estimated market valuation of $9,837,972,300 3.37%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
126
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2006 2007 2008a 2009 2010 2011 2012 2013 2014 2015
Debt limit 191,974$ 199,775$ 302,385$ 301,369$ 298,494$ 282,958$ 270,767$ 263,958$ 267,351$ 291,050$
Total net debt
applicable
to limit 21,750 26,380 25,095 46,670 45,170 42,860 39,545 37,030 51,760 48,000
Legal debt
margin 170,224$ 173,395$ 277,290$ 254,699$ 253,324$ 240,098$ 231,222$ 226,928$ 215,591$ 243,050$
Total net debt
applicable to
the limit as a
percentage of
debt limit 11.33% 13.20% 8.30% 15.49% 15.13% 15.15% 14.60% 14.03% 19.36% 16.49%
Market value (after fiscal disparities)
Debt limit (3% of market value)
Debt applicable to limit:
General obligation bonds
Public project revenue bonds
Total debt applicable to limit
Legal debt margin
a The State of Minnesota changed the legal debt limit from 2% of taxable market value to 3% during 2008.
291,050,307
21,290,000
243,050,307$
Fiscal Year
9,701,676,898$
26,710,000
48,000,000
Legal Debt Margin Calculation for Fiscal Year 2015
127
CITY OF EDINA, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Less: operating Net available
Revenue expenses revenue Principal Interest Total Coverage
Public Project Revenue Bonds (Annual Appropriation Lease Revenue)
2006 1,501,741$ -$ 1,501,741$ 480,000$ 779,778$ 1,259,778$ 1.19
2007 1,497,500 - 1,497,500 690,000 725,855 1,415,855 1.06
2008 1,425,186 - 1,425,186 715,000 696,118 1,411,118 1.01
2009 1,424,405 - 1,424,405 745,000 665,193 1,410,193 1.01
2010 1,421,354 - 1,421,354 9,280,000 901,535 10,181,535 0.14
2011 1,346,294 - 1,346,294 210,000 574,681 784,681 1.72
2012 1,362,444 - 1,362,444 1,295,000 548,691 1,843,691 0.74
2013 1,346,294 - 1,346,294 6,225,000 589,734 6,814,734 0.20
2014 1,356,844 - 1,356,844 235,000 223,754 458,754 2.96
2015 2,521,840 - 2,521,840 3,760,000 729,879 4,489,879 0.56
Tax Increment Bonds
2006 7,228,002 - 7,228,002 8,445,000 902,607 9,347,607 0.77
2007 7,793,577 - 7,793,577 4,795,000 625,606 5,420,606 1.44
2008 8,578,434 - 8,578,434 5,650,000 445,694 6,095,694 1.41
2009 7,587,386 - 7,587,386 5,890,000 244,236 6,134,236 1.24
2010 4,488,073 - 4,488,073 805,000 125,820 930,820 4.82
2011 4,083,345 - 4,083,345 840,000 94,359 934,359 4.37
2012 3,536,935 - 3,536,935 1,930,000 48,445 1,978,445 1.79
2013 3,981,939 - 3,981,939 550,000 9,350 559,350 7.12
2014 5,052,705 - 5,052,705 - - - -
2015 1,792,896 - 1,792,896 - - - -
Permanent Improvement Revolving Bonds (Special Assessment)
2006 85,656 - 85,656 - 43,366 43,366 1.98
2007 391,921 - 391,921 160,000 46,694 206,694 1.90
2008 564,534 - 564,534 155,000 306,759 461,759 1.22
2009 1,508,662 - 1,508,662 150,000 513,708 663,708 2.27
2010 1,339,350 - 1,339,350 655,000 520,278 1,175,278 1.14
2011 2,466,395 - 2,466,395 1,330,000 524,964 1,854,964 1.33
2012 2,520,862 - 2,520,862 1,375,000 557,514 1,932,514 1.30
2013 2,837,227 - 2,837,227 5,745,000 567,551 6,312,551 0.45
2014 2,870,102 - 2,870,102 1,555,000 548,927 2,103,927 1.36
2015 3,732,374 - 3,732,374 6,015,000 503,029 6,518,029 0.57
Utility Bond
2006 11,416,361 9,107,143 2,309,218 665,000 129,608 794,608 2.91
2007 13,125,419 9,735,839 3,389,580 690,000 108,840 798,840 4.24
2008 13,544,728 10,076,422 3,468,306 1,485,000 459,983 1,944,983 1.78
2009 14,857,798 10,815,216 4,042,582 2,045,000 803,157 2,848,157 1.42
2010 15,034,881 11,119,053 3,915,828 2,185,000 768,160 2,953,160 1.33
2011 15,871,102 11,438,288 4,432,814 2,270,000 693,285 2,963,285 1.50
2012 17,723,103 11,811,468 5,911,635 2,360,000 811,990 3,171,990 1.86
2013 17,830,425 12,893,159 4,937,266 3,400,000 933,970 4,333,970 1.14
2014 17,548,883 13,443,940 4,104,943 3,670,000 884,075 4,554,075 0.90
2015 19,334,023 14,387,132 4,946,891 12,300,000 882,427 13,182,427 0.38
Recreational Facility Bonds
2006 5,929,984 5,808,902 121,082 880,000 199,260 1,079,260 0.11
2007 5,870,485 5,798,005 72,480 905,000 168,159 1,073,159 0.07
2008 6,005,571 5,972,558 33,013 845,000 135,956 980,956 0.03
2009 5,932,900 5,977,793 (44,893) 860,000 92,128 952,128 (0.05)
2010 5,690,239 5,822,861 (132,622) 415,000 100,926 515,926 (0.26)
2011 5,510,043 5,760,947 (250,904) 485,000 115,050 600,050 (0.42)
2012 5,679,972 6,240,222 (560,250) 520,000 105,000 625,000 (0.90)
2013 5,582,769 6,118,195 (535,426) 550,000 138,127 688,127 (0.78)
2014 6,239,445 6,358,030 (118,585) 290,000 176,197 466,197 (0.25)
2015 6,137,111 6,258,138 (121,027) 350,000 176,808 526,808 (0.23)
Debt service requirementsFiscal
Year
128
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Estimated
Personal Per Capita High School
Income Personal Graduation Unemployment
Population (In thousands) Income Rate Rate
46,896 2,365,434$ 50,440$ 92.0% 3.00%
47,090 2,673,959 56,784 92.0% 3.45%
48,169 2,547,369 52,884 92.0% 4.33%
48,169 2,582,436 53,612 92.4% 6.38%
47,941 2,622,564 54,704 91.6% 5.56%
48,262 2,640,124 54,704 92.2% 5.25%
48,829 2,749,854 56,316 97.4% 4.56%
49,216 3,193,922 64,896 97.7% 3.98%
50,261 3,018,676 60,060 97.8% 3.10%
50,261 3,115,378 61,984 97.9% 2.82%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2014 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. 2014 is the most recent.
High school graduation rate data from U.S. Census Bureau for all of Hennepin County.
Unemployment rate data from State of Minnesota Department of Employment and Economic Development.
2015
2012
2013
Fiscal
Year
2011
2010
2009
2008
2007
2006
2014
129
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total City Total City
Employees Rank Employment Employees Rank Employment
Fairview Southdale Hospital 2,613 1 10.84% 2,500 2 11.32%
Edina Public Schools ISD #273 1,860 2 7.71% 1,172 4 5.31%
City of Edina 757 3 3.14% 262 7 1.19%
BI Worldwide 600 4 2.49% DNA DNA DNA
Regis Corporation 600 5 2.49% DNA DNA DNA
Barr Engineering 453 6 1.88% DNA DNA DNA
Lund Food Holdings, Inc 405 7 1.68% DNA DNA DNA
International Dairy Queen Inc. 400 8 1.66% 300 6 1.36%
Edina Realty 400 9 1.66% 210 9 0.95%
FilmTec Corporation 375 10 1.56% DNA DNA DNA
Macy's (Marshall Field's or Dayton's) - 0.00% 1,200 3 5.43%
Jerry's Enterprises, Inc. - 0.00% 4,500 1 20.38%
Con Agra Foods - 0.00% 196 10 0.89%
JC Penny Co. - 0.00% 250 8 1.13%
Nash Finch Co. - 0.00% 350 5 1.59%
Totals 8,463 35.10% 10,940 49.54%
Sources:
2015 data from ReferenceUSA, written and telephone survey (October 2014) done by Ehlers,
and the Minnesota Department of Employment and Economic Development.
2006 data from previous CAFR.
DNA: Historical data is not available
20062015
Employer
130
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2006 2007 2008 2009 2010 2011 2012 b 2013 b 2014 b 2015
Administration
General Fund 9.25 9.25 9.25 9.25 9.25 9.25 6.85 5.85 4.85 4.85
HRA Fund - - - - - - - - 1.00 1.00
Liquor Fund 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00
Communications and Technology Services
General Fund 1.00 2.00 2.00 3.00 3.00 3.50 4.65 5.15 6.15 6.15
Central Services 2.00 3.00 3.00 3.00 3.00 5.00 5.00 5.00 5.00 5.00
Community Development
General Fund 10.75 10.75 10.75 10.85 10.85 10.85 10.85 10.85 12.00 12.00
Engineering
General Fund 7.50 8.50 8.50 8.50 8.50 8.50 10.50 12.00 12.00 13.00
Finance
General Fund 5.50 5.50 5.50 5.50 5.50 5.25 5.25 5.25 6.00 6.00
Utilities Fund 1.75 1.75 1.75 2.75 2.75 2.00 2.00 1.00 1.00 1.00
Liquor Fund 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 - -
Fire Protection
General Fund 38.50 40.50 40.50 40.50 40.50 39.50 39.75 42.75 42.85 43.85
Utilities Fund 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Human Resources
General Fund - - - - - - 1.00 4.00 4.00 4.00
Parks & Recreation
General Fund 6.80 6.80 6.80 6.80 6.80 6.80 6.80 8.00 7.00 7.00
Aquatic Center 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55
Golf Course 13.00 13.00 13.00 13.00 13.00 11.00 12.00 12.00 12.00 12.00
Arena 6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Art Center 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park 6.00 7.00 7.00 7.00 7.00 7.00 7.00 5.80 5.80 5.80
Centennial Lakes 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Police Protection
General Fund 72.75 73.75 73.75 74.65 73.65 71.15 71.65 70.65 72.50 70.50
Utilities Fund 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Public Works
General Fund 48.40 48.40 48.40 47.40 47.40 47.20 48.20 46.40 43.35 43.35
Construction Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Utilities Fund 13.25 13.25 13.25 15.25 15.25 14.45 13.95 13.75 15.20 15.20
Central Services 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 11.00 11.00
Other - 1.00 1.00 1.00 1.00 - - - - -
Total 270.00 278.00 278.00 281.00 280.00 274.00 278.00 281.00 285.00 285.00
Source: City of Edina 2016-2017 Budget
a Full-time employee counts do not include Council members, part-time, contract or seasonal employees. In a typical
year the City will employ an additional 600-700 people in these categories.
b The City completed a major departmental reorganization that is reflected on this chart between years 2012-2014.
In some cases, data for years before the reorganization has been modified from what was originally reported to
improve comparisons.
Budgeted Full-time Employees for Fiscal Year a
Function
131
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
Total City employees 887 890 918 885 869 892 989 1,040 1,093 1,077
Votes cast a 26,270 7,930 31,512 2,733 25,463 7,957 31,841 3,480 24,049 9,370
Public Works
Asphalt placed (tons) 9,000 8,000 7,500 9,500 7,643 8,500 9,000 9,273 8,383 8,888
Concrete (cu. yds.) 650 850 480 640 503 558 667 560 396 670
Public Safety
Crimes reported 1,937 2,010 2,025 1,985 1,890 1,590 1,628 1,594 1,571 N/A
Fire calls 963 1,012 913 852 910 960 858 893 926 1,251
Medical calls 3,470 3,510 3,516 3,496 3,599 3,652 3,946 3,803 3,982 3,818
Central Services
Vehicle fixes 2,398 2,460 2,967 2,539 2,431 2,331 2,546 3,493 3,277 2,923
Utilities
Daily consumption b 7,209 7,372 7,376 7,596 6,790 6,909 7,613 6,652 6,489 6,308
Aquatic Center
Attendance 120,406 114,173 110,000 64,836 86,654 77,696 139,909 91,340 92,200 128,523
Golf Course
Total rounds played 114,737 112,821 112,663 117,819 101,314 95,771 96,496 79,529 85,231 66,483
Source: Various City departments
N/A Data not available
a The City Elections department runs general elections in even-numbered years and school district elections in odd-numbered years.
Number of votes cast tend to vary between even and odd-numbered years and based on presidential election cycles.
b Daily average of water pumped from city wells, measured in thousands of gallons.
Fiscal Year
Function
132
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Public Works
Miles of streets 224 224 224 224 224 224 224 224 224 224
City parking ramps 4 4 4 4 4 4 4 4 4 4
Public Safety
Fire stations 2 2 2 2 2 2 2 2 2 2
Parks & 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 19 19 19 18 18 18 18 18
Watermain miles 199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles 186 186 186 186 186 186 186 186 186 186
Sewer connections 14,851 14,851 14,851 13,933 13,933 13,933 13,979 13,979 13,979 13,979
Arena
Ice sheets 3 3 3 3 3 3 3 3 3 4
Source: Various City departments
Fiscal Year
Function
133
CITY OF EDINA
4801 West 50th Street
Edina, Minnesota 55424
www.EdinaMN.gov
952-826-0366