HomeMy WebLinkAbout2016 Comprehensive Annual Financial ReportComprehensive Annual Financial Report
for the Fiscal Year Ended
Dec. 31, 2016
City of Edina, Minnesota
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2016
Prepared by:
Department of Finance
Kyle Sawyer – Interim Finance Director
Sharae Sledge – Accountant
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 and Non-Employer 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
Special Revenue Fund - Conservation and Sustainability
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 91
Capital Projects Fund - Environmental Efficiency
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 92
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Governmental Fund - Debt Service
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 94
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 Balances -
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
1
June 13, 2017
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, 2016.
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, 2016. 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 50,766. 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.
2
Local economy
The City currently enjoys a favorable economic environment and local indicators point to continued stability. The region, while noted for a strong retail sector, enjoyed considerable re-development in
recent years. The re-development consisted of varied manufacturing, medical and high-tech base that adds to the relative stability of the unemployment rate. Major industries with headquarters or divisions
within the government’s boundaries or in close proximity include medical services, retail operations and banking services. Edina is home to over 50,000 jobs that are expected to remain stable over the coming
years.
The City has become known for its quality residential housing stock and attractive neighborhoods. To date, approximately 98% of the available housing stock is in place. Although the emphasis has changed
over the years from exclusively single family housing to a more balanced mix of housing types, the City’s concern for overall quality in residential development remains a top priority.
The City enjoys a AAA bond rating and a Aaa bond rating from Standard and 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 $14,624,755 unassigned fund balance in the general fund. This amount is
$2,000,405 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.
3
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Edina for its
comprehensive annual financial report for the fiscal year ended December 31, 2015. This was the eighth 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,
Kyle Sawyer Interim Finance Director
GDI
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, 2015
Executive Director/CEO
4
5
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2016
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
CITY OF EDINA, MINNESOTA
Residents
City Council
City Manager
Assistant City Manager
Administration
City Clerk
Liquor Store Operations
Economic Development/HRA
Conservation and
Sustainability
Communications & Technology
Information Technology
Human Resources Finance
Police
Patrol
Investigations
Administrative Services
Community Health
Fire
Fire & Rescue
Building Inspections
Public Works
Streets Maintenance
Utility Operations
Equipment Operations
Facilities Management
Parks
Maintenance
Engineering
Design & Construction Management
Environmental Services
Transportation Systems
Parks & Recreation
Administration & Recreation
Enterprise Facilities
Community Development
Planning
Assessing6
7
INDEPENDENT AUDITOR’S REPORT
To the City Council and Management
City of Edina, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Edina, Minnesota
(the City) as of and for the year ended December 31, 2016, 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, 2016, 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.
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 Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the 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.
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.
(continued)
9
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2017
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 13, 2017
10
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11
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, 2016. 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 $239,550,955 (net position). Of this amount, $39,447,040 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies.
The City’s total net position increased by $14,234,473 from current year operations. $5,268,519 of the operations increase is due to licenses and permits revenues from continued residential and
commercial redevelopment of the City. Also, $3,181,939 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 $54,181,877, an increase of $9,642,149 in comparison with the prior year. The increase can be attributed to the general obligation bond, series 2016A that was issued in 2016 in
the amount of $16,350,000 with a portion of the proceeds used to refund $3,785,000 of governmental fund bonds in early 2017.
At the end of the current fiscal year, unassigned fund balance for the general fund was $14,624,755 or 41% of total general fund expenditures.
The City’s total bonded debt increased by $5,803,625 during the current fiscal year, from
$111,089,595 to $116,893,220. The City issued new debt during the year consisting of $12,715,000 general obligation bonds to finance various street and utility infrastructure improvement projects,
and $3,635,000 general obligation bonds to refund old debt.
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.
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.
Management’s Discussion and Analysis (Continued)
12
The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g. uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public
safety, public works and parks. The business-type activities of the City include 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 all governmental and proprietary funds. A
budgetary comparison statement has been provided for all governmental funds to demonstrate compliance with these budgets.
Proprietary funds. The City maintains five major enterprise funds and 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’s major enterprise funds are
used 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.
Management’s Discussion and Analysis (Continued)
13
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.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $239,550,955 at the close of the most recent fiscal year.
The largest portion of the City's net position ($178,406,842 or 74%) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2016 2015 2016 2015 2016 2015
Assets:
Current and
other assets 81,778,994$ 68,610,375$ 26,967,470$ 25,007,055$ 108,746,464$ 93,617,430$
Capital assets 164,999,307 158,595,429 128,110,759 123,960,540 293,110,066 282,555,969
Total assets 246,778,301$ 227,205,804$ 155,078,229$ 148,967,595$ 401,856,530$ 376,173,399$
Deferred outflows of resources:
Pension plan deferments 29,550,556$ 3,643,551$ 2,612,692$ 571,368$ 32,163,248$ 4,214,919$
Liabilities:
Long-term liabilities
outstanding 118,112,504$ 91,065,988$ 45,828,525$ 40,070,384$ 163,941,029$ 131,136,372$
Other liabilities 16,358,130 12,337,783 7,862,253 8,376,163 24,220,383 20,713,946
Total liabilities 134,470,634$ 103,403,771$ 53,690,778$ 48,446,547$ 188,161,412$ 151,850,318$
Deferred inflows of resources:
Pension plan deferments 5,571,402$ 2,723,965$ 736,009$ 497,553$ 6,307,411$ 3,221,518$
Net position:
Net investment in
capital assets 93,247,973$ 85,838,618$ 85,158,869$ 83,395,794$ 178,406,842$ 169,234,412$
Restricted 20,892,680 16,925,171 804,393 793,664 21,697,073 17,718,835
Unrestricted 22,146,168 21,957,830 17,300,872 16,405,405 39,447,040 38,363,235
Total net position 136,286,821$ 124,721,619$ 103,264,134$ 100,594,863$ 239,550,955$ 225,316,482$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net position ($21,697,073) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position
($39,447,040) may be used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all of the categories of net position reported, both for the government as a whole, as well as for its separate governmental
and business-type activities. The same situation held true for the prior fiscal year.
There was an increase of $1,083,805 in unrestricted net position, largely due to positive operating results in the Utility Fund and a large new assessment for the Arden Park D neighborhood
reconstruction project.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $14,234,473 during the current fiscal year. Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services 11,738,825$ 11,164,102$ 41,714,434$ 41,063,598$ 53,453,259$ 52,227,700$
Operating grants and
contributions 2,751,495 3,122,178 445,464 595,141 3,196,959 3,717,319
Capital grants and
contributions 15,252,861 10,044,077 - - 15,252,861 10,044,077
General revenues:
Property taxes 31,396,421 29,632,072 - - 31,396,421 29,632,072
Other taxes 5,148,144 3,904,650 - - 5,148,144 3,904,650
Gain on disposal
of assets 65,044 41,900 35,946 39,427 100,990 81,327
Unrestricted investment
earnings 344,277 195,620 136,208 91,907 480,485 287,527
Total revenues 66,697,067 58,104,599 42,332,052 41,790,073 109,029,119 99,894,672
Expenses:
General government 9,587,567 8,518,236 - - 9,587,567 8,518,236
Public safety 20,243,209 19,507,770 - - 20,243,209 19,507,770
Public works 19,444,472 15,284,777 - - 19,444,472 15,284,777
Parks 3,822,716 3,385,367 - - 3,822,716 3,385,367
Interest on long-term debt 2,133,474 2,180,678 - - 2,133,474 2,180,678
Utilities - - 16,780,474 14,963,304 16,780,474 14,963,304
Liquor - - 12,130,254 11,818,602 12,130,254 11,818,602
Aquatic center - - 915,560 872,960 915,560 872,960
Golf course - - 3,041,169 3,409,343 3,041,169 3,409,343
Arena - - 2,842,660 2,642,097 2,842,660 2,642,097
Community activity
centers - - 3,853,091 3,436,325 3,853,091 3,436,325
Total expenses 55,231,438 48,876,828 39,563,208 37,142,631 94,794,646 86,019,459
Increase in net position
before transfers 11,465,629 9,227,771 2,768,844 4,647,442 14,234,473 13,875,213
Transfers 99,573 (2,230,966) (99,573) 2,230,966 - -
Change in net position 11,565,202 6,996,805 2,669,271 6,878,408 14,234,473 13,875,213
Net position - January 1 124,721,619 117,724,814 100,594,863 93,716,455 225,316,482 211,441,269
Net position - December 31 136,286,821$ 124,721,619$ 103,264,134$ 100,594,863$ 239,550,955$ 225,316,482$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities increased the City's net position by $11,565,202, accounting for 81% of the total growth in net position. Key elements of the increase are as follows.
Charges for services increased by $574,723, or 5% in 2016. This is primarily a result of
increased building and permit revenue due to continuing residential and commercial redevelopment growth throughout the City.
Capital grants and contributions increased by $5,208,784, or 52% in 2016. This is primarily a result of increased special assessment revenue received for various neighborhood
reconstruction projects.
Property taxes increased by $1,764,349 as the result of an increased general operating levy that provides funding to continue existing service levels that were previously subsidized by
liquor transfers.
Net transfers decreased by $2,330,539. In 2015, large transfers were made from the construction fund to the arena and sports dome funds to move proceeds initially received in the
construction fund for capital projects at those facilities.
Other taxes increased by $1,243,494 due to an increase in tax increment collections from the
Southdale 2 tax increment financing district.
Below are specific graphs which provide comparisons of the governmental activities revenues and expenses:
Charges for services17%
Operating grants and contributions
4%
Capital grants and contributions
23%
Property taxes47%
Other taxes8%
Other1%
Revenues by Source - Governmental Activities
-
5
10
15
20
25
Generalgovernment Public safety Public works Parks Interest onlong-termdebt
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 $2,669,271, accounting for 19% 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 $3,181,939 for 2016. 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 $828,326 for 2016. This majority of the 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 Aquaticcenter Golf course Arena Communityactivitycenters
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 $54,181,877, an increase of $9,642,149 in comparison with the prior year. Approximately
27% of this total amount ($14,433,910) constitutes unassigned fund balance. The remainder of the fund balance is 1) nonspendable due to prepaid items ($27,643), 2) restricted by external creditors, grantors,
laws or regulations ($24,998,646), or 3) assigned by internal constraints ($14,721,678).
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 $14,624,755. As a measure of the general fund’s liquidity,
unassigned fund balance represents 41% of total general fund expenditures.
The fund balance of the City’s general fund increased by $2,871,928 during the current fiscal year. Key factors in this increase are as follows:
Total general fund revenues were $3,018,401 over budget, including higher than expected building permit activity. General fund license and permit revenues increased by 7.6% in the
current fiscal year after a 7.5% and 8.9% increase in 2015 and 2014, respectively.
Total general fund expenditures were $658,069 under budget. Much of this savings occurred
in the police and public works departments as a result of less being spent on contractual services than anticipated. The City’s central service divisions also came in under budget in
2016 resulting in fewer expenses being charged back to the general fund.
The liquor fund transferred $100,000 of profits to the general fund, as planned in the 2016 budget.
Transfers out of the general fund totaled $804,542 related to the 2015 unassigned fund balance
and parkland dedication fees transferred to fund various construction projects.
The Housing and Redevelopment Authority fund balance increased by $3,777,787 in the current fiscal year due to unanticipated revenue received from a development to be spent on affordable housing. In
addition, there was 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 $11,187,468, all of which is restricted for the payment
of debt service. The net increase in fund balance during the current year in the debt service fund was $4,052,893. Fund balance increased as the result of the general obligation refunding bond, series
2016A that was issued in 2016 in the amount of $16,350,000 and refunded $3,635,000 of debt service fund bonds in February 2017.
The construction fund balance decreased by $240,904 in 2016 due to capital outlay related to various
projects. Also, new debt was issued in 2016 to help finance various street improvement projects.
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 $15,458,755. The total
growth in net position from current year operations was $3,081,939. Operating revenues in the utilities fund increased by .7% while expenses increased by 12.8% in 2016. The minimal revenue increase was
due to an increase in the water, sewer and storm rates offset by less consumption. 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 $8,794,245 in utility fund capital assets during 2016.
Unrestricted net position of the liquor fund at the end of the year amounted to $630,261. Total net
position increased by $128,326 from current year operations. The liquor fund continues to transfer profits back into other City funds, including the general, construction, golf course, arena, centennial
lakes and art center funds. The liquor fund made transfers totaling $700,000 to other funds during 2016.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $598,594. Aquatic center revenues decreased by 1.6% from 2015 due to less favorable weather in 2016. The
aquatic center remains profitable.
Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of ($856,034) a decrease of $682,607 from the prior year. The newly redesigned Par 3 course opened in
August 2016 and the 27-hole regulation course closed in October 2016 for renovations, resulting in $47,488 in less revenue compared to 2015. In addition, the braemar memorial fund transferred
$156,871 to the golf course in 2015 to subsidize capital improvements; no such transfer was received in 2016.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($409,470), a
decrease of $56,463 from the prior year. Expenses increased as a result of higher depreciation expenses related to the backyard rink project.
General Fund Budgetary Highlights
During the year, there was an $804,542 increase in appropriations between the original and final
amended budget. The increase is the result of 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 the centennial lakes bridge project.
During the year, revenues were $3,018,401 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 $2,419,774.
During the year, expenditures were $658,069 under budget; much of the savings occurred in the police and public works departments as a result of less being spent on contractual services than
anticipated. The City’s central service divisions also came in under budget in 2016 resulting in fewer expenses being charged back to the general fund.
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, 2016, amounted to $293,110,066 (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 3.7% (a 4.0% increase for governmental activities and a 3.3% increase for
business-type activities).
Major capital asset events during the current fiscal year included the following:
The City completed construction on the sports dome; the remaining $3,416,375 of the project
was capitalized for a total project cost of $9,091,327.
The City completed construction on the outdoor rink at the arena; the remaining $1,070,841 of
the project was capitalized for a total project cost of $3,160,070.
A variety of street construction, sidewalk and park projects; construction in progress as of the close of the fiscal year reached $12,176,272.
A variety of utility infrastructure improvements, including watermain, sanitary and storm sewer,
construction in progress as of the close of the fiscal year reached $7,604,149 in the utility fund.
The City completed the Arden Park D and Birchcrest B neighborhoods utility and street
reconstruction projects; total construction cost was $7,600,470.
City of Edina’s Capital Assets (Net of Depreciation)
2016 2015 2016 2015 2016 2015
Land and land
improvements 29,081,323$ 27,379,588$ 5,544,269$ 3,230,890$ 34,625,592$ 30,610,478$
Easements 253,000 253,000 - - 253,000 253,000
Buildings and structures 41,999,729 43,816,890 23,207,049 20,150,029 65,206,778 63,966,919
Machinery and equipment 6,210,384 5,906,091 6,738,236 6,578,366 12,948,620 12,484,457
Infrastructure 63,484,786 51,625,947 83,361,780 74,783,668 146,846,566 126,409,615
Parks 11,793,813 8,260,392 - - 11,793,813 8,260,392
Construction in progress 12,176,272 21,353,521 9,259,425 19,217,587 21,435,697 40,571,108
Total 164,999,307$ 158,595,429$ 128,110,759$ 123,960,540$ 293,110,066$ 282,555,969$
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 $116,893,220, an increase of $5,803,625 from 2017. This increase resulted from $16,350,000 in new debt, offset by payment of previously scheduled principal payments.
$27,935,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount increased from 2015 due to a new debt issue that refunded the 2007A bond in February 2017.
$25,920,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount increased from 2015 due to regularly scheduled principal payments offset by newly issued debt of $3,940,000.
Also outstanding is $20,390,000 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 2016 due to regularly scheduled principal payments.
Management’s Discussion and Analysis (Continued)
21
There is a total of $42,620,000 in revenue bonds for improvements to the enterprise funds. This amount increased $3,475,000 during the year due to $8,775,000 in issued debt offset by $5,300,000 in regularly
scheduled principal payments. The issued debt is being used to finance various utility infrastructure improvement projects.
City of Edina’s Outstanding Debt
2016 2015 2016 2015 2016 2015
General obligation bonds 27,935,000$ 26,710,000$ -$ -$ 27,935,000$ 26,710,000$
Public improvement bonds 25,920,000 23,905,000 - - 25,920,000 23,905,000
Public project revenue bonds 20,390,000 21,290,000 - - 20,390,000 21,290,000
Edina emerald energy program bonds 28,220 39,595 - - 28,220 39,595
Revenue bonds - - 42,620,000 39,145,000 42,620,000 39,145,000
Total 74,273,220$ 71,944,595$ 42,620,000$ 39,145,000$ 116,893,220$ 111,089,595$
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 $308,890,246. Only $48,325,000 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 2016 was 3.08%, 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 2013-2016. Estimated market value of real estate increased 4.9% for
taxes payable in 2017.
-8.0%
-6.0%-4.0%
-2.0%
0.0%2.0%4.0%
6.0%
8.0%10.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Market Value and Tax CapacityAnnual 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 5.2% for taxes payable in 2017, and remained
positive for the fourth consecutive year.
All of these factors above were considered in preparing the City’s budget for the 2017 fiscal year. The City’s adopted 2017 budget includes a property tax levy of $33,822,369 for all funds, an increase of
6.4% from the 2016 levy, with the increase being attributed to new levies for the City’s capital improvement plan, HRA operating expenses, Weber Woods land purchase, and an increase in the
general operating levy to fund street and bridge maintenance.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual Financial
Report can also be found on the internet at www.edinamn.gov.
CITY OF EDINA, MINNESOTASTATEMENT OF NET POSITION
December 31, 2016
Governmental Business-type
Activities Activities Total
Assets:Current assets:
Cash and investments 52,880,717$ 19,075,996$ 71,956,713$
Restricted cash and investments 4,105,966 1,668,491 5,774,457
Accrued interest 111,371 42,229 153,600
Accounts receivable, net 944,357 3,992,989 4,937,346
Special assessments receivable 20,929,273 644,204 21,573,477
Due from other governments 719,934 7,898 727,832
Prepaid items 317,023 122,275 439,298
Inventory - 1,413,388 1,413,388
Total current assets 80,008,641 26,967,470 106,976,111
Noncurrent assets:
Investment in joint powers agreement 1,770,353 - 1,770,353
Nondepreciable capital assets 34,495,555 9,544,766 44,040,321
Depreciable capital assets (net) 130,503,752 118,565,993 249,069,745
Total noncurrent assets 166,769,660 128,110,759 294,880,419
Deferred outflows of resources:Defined benefit pension plans 29,550,556 2,612,692 32,163,248
Total assets and deferred
outflows of resources 276,328,857 157,690,921 434,019,778
Liabilities:
Current liabilities:
Accounts payable 1,337,290 738,640 2,075,930
Salaries payable 751,798 157,531 909,329
Accrued interest payable 994,996 518,334 1,513,330
Contracts payable 639,628 252,694 892,322
Due to other governments 18,274 179,355 197,629 Deposits payable 1,440,261 13,400 1,453,661 Unearned revenue 293,643 103,374 397,017 Compensated absences payable 1,612,240 358,925 1,971,165
Bonds payable 9,270,000 5,540,000 14,810,000
Total current liabilities 16,358,130 7,862,253 24,220,383
Noncurrent liabilities:
Net OPEB obligation 1,945,802 208,486 2,154,288
Net pension liability 47,161,042 6,253,966 53,415,008
Compensated absences payable 2,418,360 538,386 2,956,746 Bonds payable, net 66,587,300 38,827,687 105,414,987
Total noncurrent liabilities 118,112,504 45,828,525 163,941,029
Deferred inflows of resources:Defined benefit pension plans 5,571,402 736,009 6,307,411
Total liabilities and deferred
inflows of resources 140,042,036 54,426,787 194,468,823
Net position:
Net investment in capital assets 93,247,973 85,158,869 178,406,842
Restricted for tax increments 9,799,747 - 9,799,747
Restricted for affordable housing 2,000,000 - 2,000,000
Restricted for debt service 7,081,502 804,393 7,885,895
Restricted for energy efficiency projects 209,510 - 209,510
Restricted for parkland dedication 927,673 - 927,673
Restricted for police special revenue 541,865 - 541,865
Restricted for braemar golf donations 148,083 - 148,083
Restricted for arts and culture donations 9,555 - 9,555
Restricted for conservation and sustainability initiatives 174,745 - 174,745 Unrestricted 22,146,168 17,300,872 39,447,040
Total net position 136,286,821$ 103,264,134$ 239,550,955$
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, 2016
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental activities:
General government 9,587,567$ 1,453,009$ 1,177,846$ 2,000,000$
Public safety 20,243,209 8,996,046 1,310,761 -
Public works 19,444,472 517,510 218,405 11,499,401
Parks 3,822,716 772,260 44,483 1,753,460
Interest on long-term debt 2,133,474 - - -
Total government activities 55,231,438 11,738,825 2,751,495 15,252,861
Business-type activities:
Utilities 16,780,474 19,505,905 345,097 -
Liquor 12,130,254 12,937,092 11,350 -
Aquatic center 915,560 956,068 30,000 -
Golf course 3,041,169 2,809,702 16,982 -
Arena 2,842,660 2,314,892 2,513 -
Community activity centers 3,853,091 3,190,775 39,522 -
Total business-type activities 39,563,208 41,714,434 445,464 -
Total primary government 94,794,646$ 53,453,259$ 3,196,959$ 15,252,861$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
Governmental Business-type
Activities Activities Total
(4,956,712)$ -$ (4,956,712)$
(9,936,402) - (9,936,402)
(7,209,156) - (7,209,156)
(1,252,513) - (1,252,513)
(2,133,474) - (2,133,474)
(25,488,257) - (25,488,257)
- 3,070,528 3,070,528
- 818,188 818,188
- 70,508 70,508
- (214,485) (214,485)
- (525,255) (525,255)
- (622,794) (622,794)
- 2,596,690 2,596,690
(25,488,257) 2,596,690 (22,891,567)
General revenues:
Property taxes 31,396,421 - 31,396,421
Tax increment collections 2,779,097 - 2,779,097
Franchise taxes 2,346,423 - 2,346,423
Lodging taxes 22,624 - 22,624
Unrestricted investment earnings 344,277 136,208 480,485
Gain on disposal of capital assets 65,044 35,946 100,990
Transfers 99,573 (99,573) -
Total general revenues and transfers 37,053,459 72,581 37,126,040
Change in net position 11,565,202 2,669,271 14,234,473
Net position - beginning 124,721,619 100,594,863 225,316,482
Net position - ending 136,286,821$ 103,264,134$ 239,550,955$
Net (Expense) Revenue and
Changes in Net Position
25
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2016
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Assets
Cash and Investments 19,248,526$ 11,794,011$ 7,067,860$ 13,739,485$ 1,030,835$ 52,880,717$
Restricted cash and
investments - - 4,105,966 - - 4,105,966
Accrued interest 39,690 26,043 4,723 37,374 3,541 111,371
Accounts receivable 541,607 - - 29,986 354,294 925,887
Special assessmentsreceivable - - 2,595,035 18,334,238 - 20,929,273
Due from other funds 26,597 - - 443,935 - 470,532
Due from other governments 541,584 100,000 29,917 38,968 9,465 719,934
Prepaid items 27,643 - - - - 27,643 Total assets 20,425,647$ 11,920,054$ 13,803,501$ 32,623,986$ 1,398,135$ 80,171,323$
Liabilities
Accounts payable 843,962$ 118,373$ 4,755$ 283,803$ 6,405$ 1,257,298$
Salaries payable 742,482 1,934 - 3,195 4,187 751,798
Contracts payable - - - 589,060 50,568 639,628
Due to other funds - - - - 443,935 443,935
Due to other governments 18,274 - - - - 18,274
Deposits payable 1,440,261 - - - - 1,440,261
Unearned revenue 2,085 - - 291,558 - 293,643
Total liabilities 3,047,064 120,307 4,755 1,167,616 505,095 4,844,837
Deferred inflows of resources
Unavailable revenue - taxes 186,272 - 16,243 12,694 127 215,336
Unavailable revenue -special assessments - - 2,595,035 18,334,238 - 20,929,273
Total deferred inflows of
resources 186,272 - 2,611,278 18,346,932 127 21,144,609
Fund balance:
Nonspendable 27,643 - - - - 27,643
Restricted 927,673 11,799,747 11,187,468 - 1,083,758 24,998,646
Assigned 1,612,240 - - 13,109,438 - 14,721,678
Unassigned 14,624,755 - - - (190,845) 14,433,910
Total fund balance 17,192,311 11,799,747 11,187,468 13,109,438 892,913 54,181,877
Total liabilities, deferred
inflows of resources,
and fund balances 20,425,647$ 11,920,054$ 13,803,501$ 32,623,986$ 1,398,135$ 80,171,323$
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, 2016
Total fund balances - governmental funds 54,181,877$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Cost of capital assets 286,168,830
Accumulated depreciation (121,169,523)
Bonds payable (74,273,220)
Premium on bonds (1,989,676)
Discount on bonds 405,596
Compensated absences payable (4,030,600)
Net OPEB obligation (1,945,802)
Net pension obligation (47,161,042)
(994,996)
1,770,353
Deferred outflows - pension plans 29,550,556
Deferred inflows - pension plans (5,571,402)
Deferred inflows - property taxes 215,336
Deferred inflows - special assessments 20,929,273
201,261
Total net position - governmental activities 136,286,821$
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, 2016
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Revenues:
General property taxes 24,681,406$ -$ 4,998,092$ 1,654,525$ 20,000$ 31,354,023$
Tax increment collections - 2,779,097 - - - 2,779,097
Franchise taxes 870,690 - - 99,927 1,375,806 2,346,423
Lodging tax 22,624 - - - - 22,624
Special assessments - - 224,778 5,051,416 - 5,276,194
License and permits 5,192,934 - - 75,585 - 5,268,519
Intergovernmental 1,398,980 50,000 - 3,964,655 361,479 5,775,114
Charges for services 4,449,894 31,094 - 208,401 - 4,689,389
Fines and forfeitures 946,199 - - - 70,618 1,016,817
Investment income 125,095 82,091 6,080 123,055 8,023 344,344
Rental of property 514,955 - - - - 514,955
Parkland dedication 1,250,000 - - - - 1,250,000
Other revenues 127,496 2,000,000 - 305,212 167,122 2,599,830
Total revenues 39,580,273 4,942,282 5,228,950 11,482,776 2,003,048 63,237,329
Expenditures:
Current:
General government 6,155,261 512,471 - 22,869 125,124 6,815,725
Public safety 18,408,651 - - 13,974 131,882 18,554,507
Public works 9,934,494 - - 407,636 131,878 10,474,008
Parks 1,505,397 - - 7,618 16,369 1,529,384
Capital outlay:
General government - 464,597 - 1,485,298 - 1,949,895
Public safety - - - 949,387 49,607 998,994
Public works - 187,427 - 9,461,941 2,319,861 11,969,229
Parks - - - 1,838,425 31,032 1,869,457
Debt service:
Bond principal - - 5,246,375 - - 5,246,375
Interest and fiscal charges - - 2,360,827 - - 2,360,827
Total expenditures 36,003,803 1,164,495 7,607,202 14,187,148 2,805,753 61,768,401
Revenues over
(under) expenditures 3,576,470 3,777,787 (2,378,252) (2,704,372) (802,705) 1,468,928
Other financing sources (uses):
Transfers in 100,000 - 2,400,000 1,004,542 - 3,504,542
Transfers out (804,542) - - (2,583,577) (16,850) (3,404,969)
Sale of capital assets - - - 65,044 - 65,044
Bonds issued - - 171,933 3,768,067 - 3,940,000
Refunding bonds issued - - 3,635,000 - - 3,635,000
Premium on bonds issued - - 232,276 218,133 - 450,409
Discount on bonds issued - - (8,064) (8,741) - (16,805)
Total other financing
sources (uses) (704,542) - 6,431,145 2,463,468 (16,850) 8,173,221
Net increase (decrease)
in fund balance 2,871,928 3,777,787 4,052,893 (240,904) (819,555) 9,642,149
Fund balance - January 1 14,320,383 8,021,960 7,134,575 13,350,342 1,712,468 44,539,728
Fund balance - December 31 17,192,311$ 11,799,747$ 11,187,468$ 13,109,438$ 892,913$ 54,181,877$
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, 2016
Total net change in fund balances - governmental funds 9,642,149$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays 14,865,042
Depreciation expense (8,461,164)
Investment in joint powers agreement 185,888
3,291,805
(7,575,000)
5,246,375
(18,353)
(187,898)
Net pension liability (28,258,345)
Net OPEB obiligation (209,384)
Compensated absences payable (162,106)
Deferred outflows - pension plans 25,907,005
Deferred inflows - pension plans (2,847,437)
146,625
Change in net position - governmental activities 11,565,202$
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.
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 FUNDSDecember 31, 2016
Governmental
Activities
RiskNonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Assets:
Current assets:
Cash and investments 13,081,553$ 1,241,466$ 1,323,153$ 110,223$ -$ 3,319,601$ 19,075,996$ -$ Restricted cash and investments 1,668,491 - - - - - 1,668,491 -
Interest receivable 23,047 3,234 4,103 2,659 - 9,186 42,229 -
Accounts receivable, net 3,656,158 409 - 11,372 312,138 12,912 3,992,989 18,470
Special assessments receivable 644,204 - - - - - 644,204 -
Due from other funds - - - - - 44,719 44,719 - Due from other governments 7,898 - - - - - 7,898 -
Prepaid expenses 36,000 - 86,275 - - - 122,275 289,380
Inventory 11,979 1,330,831 - 63,592 - 6,986 1,413,388 -
Total current assets 19,129,330 2,575,940 1,413,531 187,846 312,138 3,393,404 27,012,189 307,850
Noncurrent assets:
Net capital assets 95,908,301 1,618,176 1,791,182 9,026,398 9,776,406 9,990,296 128,110,759 -
Deferred outlflows of resources:
Defined benefit pension plans 630,650 630,650 - 360,371 270,278 720,743 2,612,692 -
Total assets and deferred
outflows of resources 115,668,281 4,824,766 3,204,713 9,574,615 10,358,822 14,104,443 157,735,640 307,850
Liabilities:
Current liabilities:
Accounts payable 244,540 333,603 807 29,762 60,748 69,180 738,640 79,992 Salaries payable 39,525 36,758 - 22,177 21,619 37,452 157,531 -
Accrued interest payable 424,991 - 1,262 37,566 54,515 - 518,334 -
Contracts payable 145,759 - - 47,901 34,254 24,780 252,694 -
Due to other funds - - - - 44,719 - 44,719 26,597
Due to other governments 5,602 146,273 75 3,872 7,990 15,543 179,355 - Deposits payable - - 8,400 5,000 - - 13,400 -
Unearned revenue - 12,317 - 81,495 317 9,245 103,374 -
Compensated absences payable 70,280 128,551 - 84,401 22,206 53,487 358,925 -
Bonds payable - current 5,040,000 - 85,000 185,000 230,000 - 5,540,000 -
Total current liabilities 5,970,697 657,502 95,544 497,174 476,368 209,687 7,906,972 106,589
Noncurrent liabilities:
Net OPEB obligation 55,142 38,766 - 49,242 23,361 41,975 208,486 -
Net pension liability 1,509,578 1,509,578 - 862,616 646,962 1,725,232 6,253,966 - Compensated absences payable 105,419 192,826 - 126,601 33,310 80,230 538,386 -
Bonds payable, net of
unamortized discounts and premiums 31,650,439 - - 2,992,155 4,185,093 - 38,827,687 -
Total noncurrent liabilities 33,320,578 1,741,170 - 4,030,614 4,888,726 1,847,437 45,828,525 -
Deferred inflows of resources:Defined benefit pension plans 177,657 177,657 - 101,519 76,139 203,037 736,009 -
Total liabilities and deferred
inflows of resources 39,468,932 2,576,329 95,544 4,629,307 5,441,233 2,260,161 54,471,506 106,589
Net position:
Net investment in capital assets 60,740,594 1,618,176 1,706,182 5,801,342 5,327,059 9,965,516 85,158,869 -
Restricted for debt service - - 804,393 - - - 804,393 -
Unrestricted 15,458,755 630,261 598,594 (856,034) (409,470) 1,878,766 17,300,872 201,261
Total net position 76,199,349$ 2,248,437$ 3,109,169$ 4,945,308$ 4,917,589$ 11,844,282$ 103,264,134$ 201,261$
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 FUNDSFor The Year Ended December 31, 2016
Governmental
Activities
Risk
Nonmajor Total ManagementAquatic Golf Enterprise Enterprise InternalUtilitiesLiquorCenterCourseArenaFundsFundsService Fund
Operating revenues:
Sales - liquor -$ 12,671,649$ -$ 3,144$ -$ -$ 12,674,793$ -$
Sales - retail - 265,443 6,224 216,537 40,243 49,037 577,484 -
Sales - utilities 18,473,292 - - - - - 18,473,292 - Sales - concessions - - 113,972 577 327,401 158,596 600,546 -
Memberships - - 389,817 77,544 - 140,578 607,939 -
Admissions - - 392,839 319,938 26,547 628,225 1,367,549 -
Building rental - - 52,876 115,716 1,774,409 747,899 2,690,900 - Rental of equipment - - - 337,024 5,084 171,625 513,733 -
Greens fees - - - 1,360,192 - 232,700 1,592,892 -
Other fees 999,353 - 340 379,030 141,075 1,062,115 2,581,913 731,508
Total operating revenues 19,472,645 12,937,092 956,068 2,809,702 2,314,759 3,190,775 41,681,041 731,508
Operating expenses:
Cost of sales and services - 9,625,215 40,442 169,131 124,582 92,300 10,051,670 - Personal services 2,244,587 1,490,106 359,044 1,342,085 986,768 1,897,309 8,319,899 97,950
Contractual services 8,054,346 585,263 147,228 456,824 783,974 680,616 10,708,251 589,822
Commodities 841,148 67,125 86,024 260,722 126,274 343,635 1,724,928 -
Central Services 650,497 253,823 32,557 127,369 66,969 176,366 1,307,581 - Depreciation 4,431,633 108,722 248,242 612,166 622,911 662,865 6,686,539 -
Total operating expenses 16,222,211 12,130,254 913,537 2,968,297 2,711,478 3,853,091 38,798,868 687,772
Operating income (loss)3,250,434 806,838 42,531 (158,595) (396,719) (662,316) 2,882,173 43,736
Nonoperating revenues (expenses):
Intergovernmental 345,097 - - - - - 345,097 -
Investment income (charges) 75,465 10,138 13,007 8,816 - 28,782 136,208 (67) Donations - - 30,000 - 2,513 36,668 69,181 -
Interest and fiscal charges (868,832) - (2,562) (90,919) (131,166) - (1,093,479) -
Amortization of bond premiums
(discounts) 310,569 - 539 2,047 (16) - 313,139 - Gain (loss) on sale of capital assets 35,946 - - 16,000 - - 51,946 - Miscellaneous 33,260 11,350 - 16,982 133 2,854 64,579 102,956
Total nonoperating revenues (expenses)(68,495) 21,488 40,984 (47,074) (128,536) 68,304 (113,329) 102,889
Income (loss) before transfers 3,181,939 828,326 83,515 (205,669) (525,255) (594,012) 2,768,844 146,625
Transfers:Transfers in - - - 150,000 209,861 340,566 700,427 - Transfers out (100,000) (700,000) - - - - (800,000) -
Total transfers (100,000) (700,000) - 150,000 209,861 340,566 (99,573) -
Change in net position 3,081,939 128,326 83,515 (55,669) (315,394) (253,446) 2,669,271 146,625
Net position - January 1 73,117,410 2,120,111 3,025,654 5,000,977 5,232,983 12,097,728 100,594,863 54,636
Net position - December 31 76,199,349$ 2,248,437$ 3,109,169$ 4,945,308$ 4,917,589$ 11,844,282$103,264,134$ 201,261$
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, 2016
GovernmentalActivities
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 19,429,214$ 12,938,644$ 969,144$ 2,802,791$ 2,281,028$ 3,331,618$ 41,752,439$ 713,038$ Payment to suppliers (9,156,178) (10,639,006) (310,166) (989,033) (1,092,289) (1,337,375) (23,524,047) (799,210) Payment to employees (2,108,294) (1,381,827) (359,044) (1,264,954) (942,049) (1,753,825) (7,809,993) (97,950) Donations received - - 30,000 - 2,513 36,668 69,181 - Miscellaneous received 33,260 11,350 - 16,982 133 2,854 64,579 102,956
Net cash provided by
(used in) operating activities 8,198,002 929,161 329,934 565,786 249,336 279,940 10,552,159 (81,166)
Cash flows from noncapital financing activities:State grant 345,097 - - - - - 345,097 - Transfer from other funds - - - 150,000 209,861 340,566 700,427 - Transfer to other funds (100,000) (700,000) - - - - (800,000) - Proceeds from interfund borrowing - - - - 44,719 7,103 51,822 26,597 Payment of interfund borrowing - - - - (7,103) (44,719) (51,822) -
Net cash provided by (used in)
noncapital financing activities 245,097 (700,000) - 150,000 247,477 302,950 245,524 26,597
Cash flows from capital and related financing activities:
Proceeds from capital debt 9,350,611 - - - - - 9,350,611 -
Acquisition of capital assets (8,794,245) (108,774) (183,311) (1,936,496) (133,996) (585,887) (11,742,709) -
Proceeds from disposals
of capital assets 35,946 - - 16,000 - - 51,946 -
Principal paid on bonds (4,925,000) - (80,000) (65,000) (230,000) - (5,300,000) - Interest and fiscal charges paid on bonds (814,238) - (3,750) (94,718) (132,817) - (1,045,523) -
Net cash provided by (used in)
capital and related
financing activities (5,146,926) (108,774) (267,061) (2,080,214) (496,813) (585,887) (8,685,675) -
Cash flows from investing activities:Interest received 76,635 9,507 12,041 7,929 - 27,003 133,115 8
Net increase (decrease)
in cash and investments 3,372,808 129,894 74,914 (1,356,499) - 24,006 2,245,123 (54,561)
Cash and investments -
January 1 11,377,236 1,111,572 1,248,239 1,466,722 - 3,295,595 18,499,364 54,561
Cash and investments -December 31 14,750,044$ 1,241,466$ 1,323,153$ 110,223$ -$ 3,319,601$ 20,744,487$ -$
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, 2016
GovernmentalActivities
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 cashprovided (used) by operating activities:Operating income (loss) 3,250,434$ 806,838$ 42,531$ (158,595)$ (396,719)$ (662,316)$ 2,882,173$ 43,736$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 4,431,633 108,722 248,242 612,166 622,911 662,865 6,686,539 -
Donations - - 30,000 - 2,513 36,668 69,181 -
Miscellaneous revenue (expense) 33,260 11,350 - 16,982 133 2,854 64,579 102,956
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables 16,195 (409) 4,676 (8,517) (33,731) 140,993 119,207 (18,470)
Decrease (increase) in
special assessments (94,951) - - - - - (94,951) -
Decrease (increase) in
due from other governments 35,325 - - - - - 35,325 -
Decrease (increase) in inventory 7,357 (173,986) - 20,118 - 1,665 (144,846) -
Decrease (increase) in
prepaid expenses 376,866 - (3,800) - - - 373,066 (289,380)
Decrease (increase) in deferred
outflows of resources (492,734) (492,733) - (281,562) (211,171) (563,124) (2,041,324) -
Increase (decrease) in
accounts payable 6,971 59,922 (190) 4,990 9,802 (49,718) 31,777 79,992
Increase (decrease) in
salaries payable 11,999 10,124 - 5,033 (1,864) 11,252 36,544 -
Increase (decrease) in
due to other governments (1,381) 6,484 75 (95) (292) 3,595 8,386 -
Increase (decrease) in
deposits payable - - 8,400 - - - 8,400 -
Increase (decrease) in
unearned revenue - 1,961 - 1,606 - (150) 3,417 -
Increase (decrease) in
net OPEB obligation 3,131 4,084 - 2,589 1,510 4,416 15,730 -
Increase (decrease) in
net pension liability 536,249 536,249 - 306,428 229,821 612,856 2,221,603 -
Increase (decrease) in
compensated absences 20,090 (7,003) - 11,752 1,755 12,303 38,897 -
Increase (decrease) in deferred
inflows of resources 57,558 57,558 - 32,891 24,668 65,781 238,456 -
Total adjustments 4,947,568 122,323 287,403 724,381 646,055 942,256 7,669,986 (124,902)
Net cash provided by
(used in) operating activities 8,198,002$ 929,161$ 329,934$ 565,786$ 249,336$ 279,940$ 10,552,159$ (81,166)$
Noncash investing activities:
Increase (decrease) in
fair value of investments (19,458) (2,823) (3,601) (2,364) - (8,017) (36,263) 9
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable 165,134 108,774 - 83,631 105,581 442,831 905,951 -
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, 2016
Agency Funds
Assets
Cash and investments 723,828$
Liabilities
Accounts payable 39,494$
Contracts payable 292,373
Salaries payable 5,241
Due to other governmental units 386,720
Total liabilities 723,828$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2016
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, 2016
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, 2016
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, 2016
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 external investment
pools, which are stated at amortized cost. The City has the ability and intent to hold its investments to maturity. The individual funds’ portions of the pool’s fair value are
presented as “Cash and investments.” Earnings from such investments are allocated to the respective funds on the basis of applicable cash balance participation by each fund.
The City provides temporary advances to funds that have insufficient cash and investment balances by means of an advance from another fund shown as interfund
receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund balances are eliminated on the
government-wide financial statements.
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the
valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other
observable inputs; Level 3 inputs are significant unobservable inputs.
Debt securities classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’
relationship to benchmark quoted prices.
See Note 2 for the City’s recurring fair value measurements as of December 31, 2016.
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,
2016 are planned to be eliminated in 2017. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-
wide financial statements as “internal balances.”
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
40
Property taxes and special assessments receivables have been reported net of estimated uncollectible accounts. Because utility bills are considered liens on property, no
estimated uncollectible amounts are established. Uncollectible amounts are not material for other receivables and have not been reported.
F. REVENUE RECOGNITION
1. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in
December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for
itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by
taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 7 and December 2 of the
same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes
by property owners. The County possesses this authority.
GOVERNMENT-WIDE FINANCIAL STATEMENTS The City recognizes property tax revenue in the period for which the taxes were
levied. Uncollectible property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS The City recognizes property tax revenue when it becomes both measurable and
available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and
January are recognized as revenue for the current year. Taxes collected by the County by December 31 (remitted to the City the following January) and taxes
and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by
the City in January are fully offset by deferred inflows of resources because they are not available to finance current expenditures.
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, 2016
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, 2016:
Enterprise
Funds
Debt
Service Construction Utilities
Special assessments receivable
Delinquent $53,766 $0 $291,354
Deferred 2,541,269 18,334,238 352,850
Total $2,595,035 $18,334,238 $644,204
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, 2016
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 acquisition 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, 2016
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.
The PERA has a special funding situation created by a direct aid contribution made by
the state of Minnesota. The direct aid is a result of the merger of the Minneapolis Employees Retirement Fund in the PERA on January 1, 2015.
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.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
44
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.
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.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
45
Assigned – Consists of internally imposed constraints. These constraints consist of
amounts intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In the general fund, assigned
amounts represent intended uses established by the City Council. In the fund balance policy, authority to assign amounts for specific purposes is limited to the City
Council.
Unassigned – The residual classification for the general fund which also reflects
negative residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, 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.”
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. 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, 2016
46
Note 2 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits 354,060$
Cash on hand 19,215
Investments 78,081,723
78,454,998$
Cash and investments are presented in the financial statements as follows:
Cash and investments - Statement of Net Position 71,956,713$
Restricted cash and investments - Statement of Net Position 5,774,457
Cash and investments - Statement of Fiduciary Net Position 723,828
78,454,998$
The City had restricted investments of $5,774,457 as of December 31, 2016 that represent unspent bond proceeds to be used for construction projects and debt
payments.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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 $354,060 while the
balance on the bank records was $1,312,660. At December 31, 2016, all deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
48
C. INVESTMENTS
The City has the following investments at year end:
Fair ValueMeasurements
Rating Agency Using < 1 1 to 5 6 to 10 > 10 Total
U.S. Treasuries AA+ S&P Level 1 -$ 297,829$ 451,507$ 774,861$ 1,524,197$ U.S. Treasury Time Deposits N/R N/A Level 1 3,831,980 - - - 3,831,980 SBA Notes AA+ S&P Level 1 - 63,167 - - 63,167
SBA Notes N/R N/A Level 1 - - 16,506 - 16,506
U.S. Agencies AA+ S&P Level 1 1,027,345 9,397,048 976,826 2,446,407 13,847,626
U.S. Agencies AA- S&P Level 1 - 37,930 - - 37,930
Commerical Paper A1+ S&P Level 3 13,592,303 - - - 13,592,303
Municipals AAA S&P Level 2 389,879 504,535 30,891 - 925,305
Municipals AA+ S&P Level 2 70,871 1,022,300 - 1,645,000 2,738,171
Municipals AA S&P Level 2 145,460 2,454,738 1,122,536 - 3,722,734
Municipals AA2 Mdy's Level 2 - 249,525 - - 249,525
Negotiable CD's N/R N/A Level 1 16,370,903 10,358,372 237,145 - 26,966,420
35,428,741$ 24,385,444$ 2,835,411$ 4,866,268$ 67,515,864
Money Market* AAAm S&P N/A 4,413,777
Money Market* AA+ S&P N/A 38,294
4M Fund* N/R N/A N/A 6,113,788
Total investments 78,081,723$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments do not have maturities
Credit Risk
Investment
Maturity Duration in YearsInterest Risk -
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The 4M Fund is
an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the same regulatory rules of the SEC. The City’s investment in the 4M
Fund is measured at amortized cost which approximates fair value. Money markets and mutual fund investments are also valued at amortized cost.
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, 2016
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 $10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments include 17.4% in commercial paper with U.S. Bank, and 6.6% in securities issued
by FNMA.
Interest rate risk – This is the risk of potential variability in the fair value of fixed rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
50
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 is as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land 20,994,033$ 1,072,250$ -$ 22,066,283$
Easements 253,000 - - 253,000
Construction in progress 21,353,521 12,149,007 (21,326,256) 12,176,272
Total capital assets not being depreciated 42,600,554 13,221,257 (21,326,256) 34,495,555
Capital assets being depreciated:
Land improvements 23,145,607 1,348,784 - 24,494,391
Buildings and structures 64,004,570 22,516 - 64,027,086
Furniture and office equipment 4,185,783 12,689 - 4,198,472
Vehicles and equipment 16,224,482 1,832,893 (2,019,699) 16,037,676
Infrastructure 106,389,220 15,286,887 (1,070,323) 120,605,784
Parks 17,868,215 4,466,272 (24,621) 22,309,866
Total capital assets being depreciated 231,817,877 22,970,041 (3,114,643) 251,673,275
Less accumulated depreciation for:
Land improvements (16,760,052) (719,299) - (17,479,351)
Buildings and structures (20,187,680) (1,839,677) - (22,027,357)
Furniture and office equipment (3,036,030) (290,112) - (3,326,142)
Vehicles and equipment (11,468,144) (1,251,177) 2,019,699 (10,699,622)
Infrastructure (54,763,273) (3,428,048) 1,070,323 (57,120,998)
Parks (9,607,823) (932,851) 24,621 (10,516,053)
Total accumulated depreciation (115,823,002) (8,461,164) 3,114,643 (121,169,523)
Total capital assets being depreciated, net 115,994,875 14,508,877 - 130,503,752
Governmental activities capital assets, net 158,595,429$ 27,730,134$ (21,326,256)$ 164,999,307$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
51
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land 285,341$ -$ -$ 285,341$
Construction in progress 19,217,587 10,286,595 (20,244,757) 9,259,425
Total capital assets not being depreciated 19,502,928 10,286,595 (20,244,757) 9,544,766
Capital assets being depreciated:
Land improvements & golf course 8,664,368 2,710,507 - 11,374,875
Buildings and structures 33,922,536 4,573,535 - 38,496,071
Furniture and office equipment 153,303 - - 153,303
Vehicles and equipment 11,740,591 934,120 (201,631) 12,473,080
Utility infrastructure 119,033,436 12,576,758 - 131,610,194
Lease property capital lease 430,614 - - 430,614
Total capital assets being depreciated 173,944,848 20,794,920 (201,631) 194,538,137
Less accumulated depreciation for:
Land improvements & golf course (5,718,819) (397,128) - (6,115,947)
Buildings and structures (13,772,507) (1,516,515) - (15,289,022)
Furniture and office equipment (146,253) (3,188) - (149,441)
Vehicles and equipment (5,169,275) (771,062) 201,631 (5,738,706)
Utility infrastructure (44,249,768) (3,998,646) - (48,248,414)
Lease property capital lease (430,614) - - (430,614)
Total accumulated depreciation (69,487,236) (6,686,539) 201,631 (75,972,144)
Total capital assets being depreciated, net 104,457,612 14,108,381 - 118,565,993
Business-type activities capital assets, net 123,960,540$ 24,394,976$ (20,244,757)$ 128,110,759$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
52
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 499,311$
Public safety 1,025,422
Public works 4,698,112
Parks 2,238,319
Total depreciation expense - governmental activities 8,461,164$
Business-type activities:
Utilities 4,431,633$
Liquor 108,722
Aquatic Center 248,242
Golf Course 612,166
Arena 622,911
Art Center 23,929
Edinborough Park 180,549
Centennial Lakes 39,595
Sports Dome 418,792
Total depreciation expense - business-type activities 6,686,539$
CONSTRUCTION COMMITMENTS
At December 31, 2016, 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
14-8 Eng Promenade Water Feature 1,445,573$ 63,074$
16-1 Eng Valley View & Tracy Neighborhood 2,114,765 124,714
16-3 Eng Strachauer Park Neighborhood 2,723,918 112,836
16-4 Eng Morningside A Neighborhood 2,762,768 262,004
NA Golf Course 5,349,958 4,342,937
4,905,565$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
53
Note 4 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2016: 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, 2016, 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 12/31/2016
General Obligation Bonds:
General Obligation - Capital Improvement Plan, 2007A 4.00-4.25% 5/24/2007 2/1/2028 5,865,000$ 4,055,000$
General Obligation - Capital Improvement Plan, 2009A 3.00-4.40% 4/29/2009 2/1/2030 14,000,000 10,710,000
General Obligation - Capital Improvement Plan, 2010A 2.00-4.00% 11/18/2010 2/1/2021 8,285,000 4,130,000
General Obligation - Capital Improvement Plan, 2013A - Refunding 3.00-3.50% 10/10/2013 2/1/2030 5,710,000 4,850,000
General Obligation - 2014B - Refunding 3.00% 12/11/2014 2/1/2017 1,105,000 555,000
General Obligation - 2016A - Refunding 2.00-3.00% 7/6/2016 2/1/2028 3,635,000 3,635,000
Total General Obligation Bonds 38,600,000 27,935,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2010B 2.00-3.00% 11/18/2010 2/1/2022 2,305,000 1,435,000
Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 2,400,000
Permanent Improvement Revolving, 2012A 3.00-4.00% 11/15/2012 2/1/2029 2,675,000 2,390,000
Permanent Improvement Revolving, 2012A - Refunding 3.00-4.00% 11/15/2012 2/1/2019 1,990,000 970,000
Permanent Improvement Revolving, 2013A 3.00-3.50% 10/10/2013 2/1/2030 2,555,000 2,415,000
Permanent Improvement Revolving, 2014B - Refunding 2.00-3.00% 12/11/2014 2/1/2020 4,075,000 3,330,000
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
Permanent Improvement Revolving, 2016A 2.00-3.00% 7/6/2016 2/1/2033 3,940,000 3,940,000
Total PIR Bonds 29,900,000 25,920,000
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 15,540,000
Public Project Revenue, Series 2015A - Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 3,205,000
Total Public Project Revenue Bonds 22,240,000 20,390,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A 7.00% 2/25/2012 1/1/2023 33,690 20,214
Edina Emerald Energy Program Bonds, 2012B 5.50% 8/28/2012 1/1/2018 40,030 8,006
Total EEEP Bonds 73,720 28,220
Total bonded indebtedness - governmental activities 90,813,720$ 74,273,220$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
54
BUSINESS-TYPE ACTIVITIES
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2016
Revenue Bonds:
Recreational Facility Bonds, Series 2009B 2.00-3.00% 4/29/2009 1/1/2017 2,010,000$ 85,000$
Recreational Facility Bonds, Series 2009C 2.00-4.00% 12/10/2009 2/1/2030 2,440,000 1,855,000
Recreational Facility Bonds, Series 2012B .45-1.60% 11/15/2012 2/1/2020 815,000 455,000
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 1,010,000
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 7,060,000
Utility Revenue Bonds, Series 2012A 3.00-4.00% 11/15/2012 2/1/2023 6,100,000 4,535,000
Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 4,590,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00% 12/11/2014 2/1/2017 1,830,000 935,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00% 12/11/2014 2/1/2019 5,710,000 4,370,000
Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 4,710,000
Utility Revenue Bonds, Series 2016A 2.00-3.00% 7/6/2016 2/1/2027 8,775,000 8,775,000
Total bonded indebtedness - business-type activities 55,190,000$ 42,620,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2017 6,260,000$ 887,981$ 2,105,000$ 745,783$ 905,000$ 633,628$
2018 1,995,000 727,074 2,480,000 672,088 1,045,000 607,198
2019 2,070,000 657,701 2,630,000 600,263 1,080,000 574,566
2020 2,145,000 584,731 2,470,000 533,775 1,115,000 540,690
2021 2,210,000 508,093 1,645,000 481,800 1,145,000 505,649
2022-2026 7,265,000 1,760,177 6,705,000 1,714,588 6,290,000 1,994,386
2027-2031 5,990,000 453,047 5,945,000 778,145 4,745,000 1,108,501
2032-2036 - - 1,940,000 102,831 4,065,000 298,488
Total 27,935,000$ 5,578,804$ 25,920,000$ 5,629,273$ 20,390,000$ 6,263,106$
Principal Interest Principal Interest
2017 -$ 928$ 5,540,000$ 1,148,081$
2018 11,375 1,517 5,400,000 986,201
2019 3,369 1,061 5,570,000 840,155
2020 3,369 825 4,170,000 706,603
2021 3,369 590 4,280,000 585,890
2022-2026 6,738 472 13,790,000 1,358,890
2027-2031 - - 3,515,000 251,602
2030-2033 - - 355,000 10,725
Total 28,220$ 5,393$ 42,620,000$ 5,888,147$
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, 2016
55
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2016, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation 26,710,000$ 3,635,000$ (2,410,000)$ 27,935,000$ 6,260,000$
PIR 23,905,000 3,940,000 (1,925,000) 25,920,000 2,105,000
Public project revenue 21,290,000 - (900,000) 20,390,000 905,000
EEEP revenue 39,595 - (11,375) 28,220 -
Less deferred amounts:
Discount on bonds (433,708) (16,805) 44,917 (405,596) -
Premiums 1,829,890 450,409 (290,623) 1,989,676 -
Total bonds payable 73,340,777 8,008,604 (5,492,081) 75,857,300 9,270,000
Compensated absences 3,868,494 1,756,382 (1,594,276) 4,030,600 1,612,240
Governmental activity
Long-term liabilities 77,209,271$ 9,764,986$ (7,086,357)$ 79,887,900$ 10,882,240$
Business-type activities:
Bonds payable:
Revenue bonds 39,145,000$ 8,775,000$ (5,300,000)$ 42,620,000$ 5,540,000$
Less deferred amounts:
Discount on bonds (132,279) (19,467) 18,093 (133,653) -
Premiums 1,617,494 595,079 (331,233) 1,881,340 -
Total bonds payable 40,630,215 9,350,612 (5,613,140) 44,367,687 5,540,000
Compensated absences 858,414 280,738 (241,841) 897,311 358,925
Business-type activity
Long-term liabilities 41,488,629$ 9,631,350$ (5,854,981)$ 45,264,998$ 5,898,925$
For governmental activities, compensated absences are generally liquidated by the general
fund.
In 2016, the City issued $3,635,000 of General Obligation bonds, Series 2016A to finance a crossover refunding of the 2018 through 2028 maturities of the City’s $5,865,000 General
Obligation capital improvement plan bonds, Series 2007A. Savings from the current proceeds were placed in escrow and the General Obligation capital improvement plan bonds, Series
2007A were redeemed February 1, 2017. The crossover refunding was undertaken to reduce total debt service payments by $565,794 and resulted in an economic gain of $512,801. The
City anticipates that ad valorem taxes will be sufficient to pay future debt service on this issuance.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
56
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of Total Remaining Principal Pledged
Debt Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009B Recreational Facility Bonds Pool improvement Pool 100% 2009-2017 86,275$ 83,750$ 956,068$
2009C Recreational Facility Bonds Arena improvements Arena 100% 2010-2030 2,411,550 177,775 2,314,759
2012B Recreational Facility Bonds Arena improvements Arena 100% 2013-2020 467,119 131,249 2,314,759
2012C Recreational Facility Bonds Arena improvements Arena 100% 2013-2033 2,679,503 53,794 2,314,759
2013B Recreational Facility Bonds Golf dome improvements Golf 100% 2014-2029 1,233,718 97,490 2,809,702
2015B Recreational Facility Bonds Golf course improvements Golf 100% 2016-2031 2,648,478 62,228 2,809,702
2011A Utility Revenue Bonds Utility infrastructure Utility 100% 2012-2022 7,658,575 1,278,650 19,472,645
2012A Utility Revenue Bonds Utility infrastructure Utility 100% 2013-2023 5,057,325 720,250 19,472,645
2014A Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2024 5,101,275 640,750 19,472,645
2014B Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2019 5,518,525 2,427,675 19,472,645
2015A Utility Revenue Bonds Utility infrastructure Utility 100% 2016-2025 5,414,550 671,913 19,472,645
2016A Utility Revenue Bonds Utility infrastructure Utility 100% 2017-2027 10,231,254 - 19,472,645
Revenue Pledged Current Year
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 2016 is computed as follows:
December 31, 2016
Market Value (after fiscal disparities) 10,296,341,540$
Debt Limit (3% of Market Value) 308,890,246$
Amount of debt applicable to debt limit:
Total bonded debt 116,893,220$
Less:
Public improvement revolving bonds (25,920,000)
Revenue bonds (42,620,000)
EEEP revenue bonds (28,220)
Total debt applicable to debt limit 48,325,000$
Legal debt margin 260,565,246$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
57
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
The City participates in various pension plans, total pension expense for the year ended December 31, 2016 was $8,238,891. The components of pension expense are noted in the
following plan summaries:
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the 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.
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.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
58
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.
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 2016. The City was required to contribute 7.50
percent for Coordinated Plan members in calendar year 2016. The City’s contributions to the GERF for the year ended December 31, 2016 were $1,265,817.
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 2016. The City was required to contribute 16.20 percent of pay for PEPFF members in calendar year 2016. The City’s regular contributions to the PEPFF
for the year ended December 31, 2016 were $1,272,485. The City’s contributions were equal to the required contributions as set by state statute.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
59
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2016, the City reported a liability of $21,349,748 for its proportionate share of the GERF’s net pension liability. The City’s net pension liability
reflected a reduction due to the State of Minnesota’s contribution of $6 million to the fund in 2016. The State of Minnesota is considered a non-employer contribution
entity and the State’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability associated
with the City totaled $278,868. The net pension liability was measured as of June 30, 2016, 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, 2015 through June 30, 2016, relative to the total employer contributions received from all of the
PERA’s participating employers. At June 30, 2016, the City’s proportionate share was .2656 percent, which was a decrease of .0027 percent from its proportion measured
as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $2,778,376 for its proportionate share of the GERF’s pension expense. In addition, the
City recognized an additional $83,072 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the General
Employees Fund.
At December 31, 2016, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources, and its contributions
subsequent to the measurement date, related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience –$ 1,739,007$
Changes in actuarial assumptions 4,180,300 –
Differences between projected and actual investment earnings 4,062,111 –
Changes in proportion – 773,571
Contributions paid to the PERA subsequent to the measurement
date 676,778 –
Total 8,919,189$ 2,512,578$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
60
$676,778 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2017 1,464,160$
2018 1,464,155$
2019 2,030,339$
2020 771,179$
2. PEPFF Pension Costs
At December 31, 2016, the City reported a liability of $32,065,260 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as
of June 30, 2016, 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, 2015 through
June 30, 2016, relative to the total employer contributions received from all of the PERA’s participating employers. At June 30, 2016, the City’s proportion was
.799 percent, which was a decrease of .008 percent from its proportion measured as of June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of
$5,460,515 for its proportionate share of the PEPFF’s pension expense. The City also recognized $71,910 for the year ended December 31, 2016, as pension expense (and
grant 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 $9 million to the PEPFF each year, starting in fiscal year 2014.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
61
At December 31, 2016, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience –$ 3,690,284$
Changes in actuarial assumptions 17,646,912 –
Differences between projected and actual investment earnings 4,905,267 –
Changes in proportion – 104,549
Contributions paid to the PERA subsequent to the measurement
date 691,880 –
Total 23,244,059$ 3,794,833$
$691,880 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2017. Other amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2017 4,035,655$
2018 4,035,655$
2019 4,035,674$
2020 3,636,253$
2021 3,014,109$
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016 actuarial valuation was determined using the following actuarial assumptions:
Inflation 2.50% per year
Active member payroll growth 3.25% per year
Investment rate of return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members,
retirees, survivors, and disabilitants were based on RP-2014 tables for GERF and RP-2000 tables for PEPFF for males or females, as appropriate, with slight adjustments. Cost of
living benefit increases for retirees are assumed to be 1.0 percent for all future years for GERF and PEPFF.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
62
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was
completed in 2015. The experience study for the PEPFF was for the period July 1, 2004 through June 30, 2009.
The following changes in actuarial assumptions occurred in 2016:
GERF
The assumed post-retirement benefit increase rate was changed from 1.0 percent
per year through 2035 and 2.5 percent per year thereafter to 1.0 percent per year for all future years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The single discount rate was changed from 7.9 percent to 7.5 percent.
Other assumptions were changed pursuant to the experience study dated June
30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by .25 percent to 3.25 percent for payroll growth and 2.5 percent for
inflation.
PEPFF
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent thereafter to 1.0 percent per year for all
future years.
The assumed investment return was changed from 7.9 percent to 7.5 percent. The
single discount rate was changed from 7.9 percent to 5.6 percent.
The assumed future salary increases, payroll growth, and inflation were decreased by .25 percent to 3.25 percent for payroll growth and 2.5 percent for inflation.
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%
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
63
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2016 was 7.5 percent, a reduction from the 7.9 percent used in 2015. The projection of cash flows used to determine
the discount rate assumed that contributions from Plan members and employers will be made at rates set in Minnesota Statutes. Based on those assumptions, the fiduciary net position of
the GERF was projected to be available to make all projected future benefit payments of current Plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
In the PEPFF, the fiduciary net position was projected to be available to make all projected future benefit payments of current plan members through June 30, 2056. Beginning in fiscal
years ended June 30, 2057 for the PEPFF, when projected benefit payments exceed the funds’ projected fiduciary net position, benefit payments were discounted at the municipal bond rate
of 2.85 percent based on an index of 20-year general obligation bonds with an average AA credit rating at the measurement date. An equivalent single discount rate of 5.6 percent for the
PEPFF was determined that produced approximately the same present value of projected benefits when applied to all years of projected benefits as the present value of projected
benefits using 7.5 percent applied to all years of projected benefits through the point of asset depletion and 2.85 percent after.
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 1.0 percentage point lower or 1.0 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(6.5%) (7.5%) (8.5%)
The City’s proportionate share of the
GERF net pension liability 30,322,970$ 21,349,748$ 13,958,257$
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
(4.6%) (5.6%) (6.6%)
The City’s proportionate share of the
PEPFF net pension liability 44,815,199$ 32,065,260$ 21,516,926$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
64
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.
I. PUBLIC EMPLOYEES DEFINED CONTRIBUTION PLAN (DCP)
Board members of the City are covered by the DCP, a multiple-employer deferred
compensation plan administered by PERA. The DCP is a tax qualified plan under Section 401(a) of the Internal Revenue Code and all contributions by or on behalf of employees are tax
deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies plan provisions,
including the employee and employer contribution rates for those qualified personnel who elect to participate. An eligible elected official who decides to participate contributes 5.0 percent of
salary which is matched by the elected official’s employer. For ambulance service personnel, employer contributions are determined by the employer, and for salaried employees must be a
fixed percentage of salary. Employer contributions for volunteer personnel may be a unit value for each call or period of alert duty. Employees who are paid for their services may elect to
make member contributions in an amount not to exceed the employer share. Employer and employee contributions are combined and used to purchase shares in one or more of the seven
accounts of the Minnesota Supplemental Investment Fund. For administering the plan, PERA receives 2.0 percent of employer contributions and twenty-five hundredths of 1.0 percent
(.0025) of the assets in each member’s account annually.
Total contributions made by the City during fiscal year 2016 were:
Employee Employer Employee Employer Required Rate
1,749$ 1,749$ 5% 5% 5%
Contribution Amount Percentage of Covered Payroll
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
65
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. The plan does not issue a publically available financial report. 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.
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.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
66
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 275,534$
Interest on net OPEB obligation 86,813
Adjustment to annual required contribution (75,311)
Annual OPEB cost (expense) 287,036
Contributions made (61,922)
Increase in net OPEB obligation 225,114
Net OPEB obligation - beginning of year 1,929,174
Net OPEB obligation - end of year 2,154,288$ 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, 2014 318,242$ 86,445$ 27.2% 1,719,772$
December 31, 2015 329,182 119,780 36.4% 1,929,174
December 31, 2016 287,036 61,922 21.6% 2,154,288
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
67
D. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2016, the most recent actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $2,546,522, and the actuarial value
of assets was $0, resulting in an unfunded actuarial accrued liability (UAAL) of $2,546,522. The covered payroll (annual payroll of active employees covered by the plan) was
$21,590,000, and the ratio of the UAAL to the covered payroll was 12.0 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, 2016 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 payroll growth rate of 3.5 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, 2016 was 30 years on an “open” basis.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
68
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, 2016, is as follows:
Payable Fund Amount
General Risk Management Internal Service 26,597$
Construction Nonmajor - Pedestrian and Cyclist Safety 443,935
Nonmajor - Sports Dome Arena 44,719
Total 515,251$
Receivable Fund
The City’s interfund receivable and payable eliminates what would have been a negative cash
balance.
Debt Nonmajor
General Service Construction Golf Course Arena Enterprise Total
Transfer out:
General Fund -$ -$ 804,542$ -$ -$ -$ 804,542$
Construction Fund - 2,400,000 - - 9,861 173,716 2,583,577
Nonmajor Governmental - - - - - 16,850 16,850
Utilities Fund - - 100,000 - - - 100,000
Liquor Fund 100,000 - 100,000 150,000 200,000 150,000 700,000
100,000$ 2,400,000$ 1,004,542$ 150,000$ 209,861$ 340,566$ 4,204,969$
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 $100,000, $150,000, $200,000, $100,000 and $50,000 to the general, golf course, arena, art center, and centennial lakes funds, respectively, to subsidize operations. 2. The construction fund transferred $9,861, $25,837 and $23,210 to the arena, edinborough park and centennial lakes funds, respectively, to subsidize capital improvements to those facilities. 3. The environmental efficiency fund transferred $16,850 to the art center fund to subsidize capital improvements. 4. The construction fund transferred $124,669 to the sports dome fund to reimburse for debt proceeds initially received in the construction fund for capital projects at that facility.
5. The utilities fund and liquor fund transferred $100,000 each to the construction fund to fund the capital improvement program, as planned in the 2016 budget. 6. The general fund transferred $64,542 of the 2015 unassigned fund balance to the construction fund to subsidize the capital improvement program. 7. The general fund transferred $740,000 to the construction fund for use of park reserves from the parkland dedication money received in 2016.
8. The construction fund transferred $2,400,000 of PIR assessment revenue to the debt service fund for related debt payments.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
69
Note 9 TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are the administering authorities for the following Tax Increment Districts:
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
District number 1211 (Pentagon Park Increment Financing District) is an economic development district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043.
District number 1212 (Grandview 2 Increment Financing District) is an economic development
district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1214 (66 West Increment Financing District) is an economic development district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
The following table reflects values as of December 31, 2016:
TIF #1208 TIF #1211 TIF #1212 TIF #1214 Total
Original tax capacity 8,746,251$ 880,068$ 42,662$ 25,525$ 9,694,506$
Current tax capacity 13,303,761 813,186 42,662 25,525 14,185,134
Fiscal Disparities 1,083,413 40,648 - - 1,124,061
Tax capacity change 3,474,097 (107,530) - - 3,366,567
Captured tax capacity value:
Retained captured tax capacity 3,474,097$ (107,530)$ -$ -$ 3,366,567$
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
70
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. There were no significant decreases in insurance coverage during 2016.
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, 2016.
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.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
71
Note 11 CONDUIT DEBT OBLIGATION
As of December 31, 2016, the City of Edina had four series of Housing and Health Care Revenue Bonds, with an aggregate principal amount payable of $29,100,000. 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 $1,770,353. Complete financial statements for PSTF can be obtained from the City of Edina, 4801 West 50th Street, Edina, MN 55424.
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, 2016,
the City paid a total of $58,848 in membership fees and $185,888 for the classroom expansion project 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, 2016,
the City paid a total of $16,084 in membership fees to the I-494 Corridor Commission.
CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS
December 31, 2016
72
Note 14 FUND BALANCES
A. Classifications
At December 31, 2016, a summary of the City’s governmental fund balance classifications are as follows:
General Fund HRA Fund
Debt Service
Fund
Construction
Fund
Nonmajor
Funds Total
Nonspendable
Prepaid items 27,643$ -$ -$ -$ -$ 27,643$
Restricted
Park dedication 927,673 - - - - 927,673
Tax increments - 9,799,747 - - - 9,799,747
Affordable housing - 2,000,000 - - - 2,000,000
Debt service - - 11,187,468 - - 11,187,468
Energy efficiency projects - - - - 209,510 209,510
Forfeitures - - - - 456,273 456,273 Grant funds - - - - 85,592 85,592
Arts and culture - - - - 9,555 9,555
Donations - - - - 148,083 148,083
Conservation and sustainability initiatives - - - - 174,745 174,745
Total Restricted 927,673 11,799,747 11,187,468 - 1,083,758 24,998,646
Assigned
Compensated absences 1,612,240 - - - - 1,612,240
Construction commitments - - - 562,628 - 562,628
Special projects - - - 2,062,336 - 2,062,336
Equipment - - - 2,988,791 - 2,988,791
PIR - - - 3,060,653 - 3,060,653
Construction - - - 4,435,030 - 4,435,030
Total Assigned 1,612,240 - - 13,109,438 - 14,721,678
Unassigned 14,624,755 - - - (190,845) 14,433,910
Total Fund Balance 17,192,311$ 11,799,747$ 11,187,468$ 13,109,438$ 892,913$ 54,181,877$ 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, 2016, the City has $14,624,755 of unassigned fund balance in the general fund, or 54.4% of 2017 budgeted property tax revenue. This amount is $2,000,405
above the goal range identified in the policy.
C. Deficit Fund Equity
The following funds had deficit fund balance/net position at December 31, 2016:
Nonmajor Governmental Funds:
Pedestrian and Cyclist Safety (190,845)$
Nonmajor Proprietary Funds:
Art Center (5,551)
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
2016
Actual Variance with
Original Final Amounts Final Budget
Revenues:
Taxes:
General property taxes 25,023,952$ 25,023,952$ 24,681,406$ (342,546)$
Franchise taxes 810,000 810,000 870,690 60,690
Lodging tax - - 22,624 22,624
Total taxes 25,833,952 25,833,952 25,574,720 (259,232)
Licenses and permits: 4,023,160 4,023,160 5,192,934 1,169,774
Intergovernmental:
Federal: 56,000 56,000 61,783 5,783
State:
Municipal state aid 195,000 195,000 195,000 -
Other 126,000 126,000 212,249 86,249
State aid - police 320,000 320,000 396,903 76,903
State aid - fire 375,573 375,573 414,097 38,524
Health programs 118,977 118,977 118,948 (29)
Total intergovernmental 1,191,550 1,191,550 1,398,980 207,430
Charges for services:
Administration 85,000 85,000 107,397 22,397
Communications & Technology 131,246 131,246 156,825 25,579
Finance 499,128 499,128 473,076 (26,052)
Public Works 170,000 170,000 51,481 (118,519)
Engineering 225,400 225,400 369,521 144,121
Police 321,706 321,706 614,343 292,637
Fire 2,122,125 2,122,125 2,103,732 (18,393)
Parks & Recreation 280,405 280,405 495,472 215,067
Community Development 105,300 105,300 78,047 (27,253)
Total charges for services 3,940,310 3,940,310 4,449,894 509,584
Fines and forfeits 975,000 975,000 946,199 (28,801)
Miscellaneous:
Investment income 120,000 120,000 125,095 5,095
Rental of property 470,300 470,300 514,955 44,655
Parkland dedication - - 1,250,000 1,250,000
Other 7,600 7,600 127,496 119,896
Total miscellaneous 597,900 597,900 2,017,546 1,419,646
Total revenues 36,561,872 36,561,872 39,580,273 3,018,401
Budgeted Amounts
73
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2016
2016
Actual Variance with
Original Final Amounts Final Budget
Expenditures:
General government:
Administration:
Personal services 958,905$ 958,905$ 989,704$ 30,799$
Contractual services 743,429 743,429 768,101 24,672
Commodities 96,100 96,100 60,757 (35,343)
Central services 98,376 98,376 97,066 (1,310)
Total administration 1,896,810 1,896,810 1,915,628 18,818
Communications & technology:
Personal services 682,806 682,806 705,733 22,927
Contractual services 224,700 224,700 223,088 (1,612)
Commodities 85,500 85,500 68,891 (16,609)
Central services 111,612 111,612 108,967 (2,645)
Total communications & technology 1,104,618 1,104,618 1,106,679 2,061
Human Resources:
Personal services 725,553 725,553 755,045 29,492
Contractual services 37,200 37,200 12,549 (24,651)
Commodities 2,500 2,500 1,643 (857)
Central services 25,092 25,092 23,958 (1,134)
Total human resources 790,345 790,345 793,195 2,850
Finance:Personal services 528,028 528,028 513,113 (14,915)
Contractual services 242,900 242,900 229,027 (13,873)
Commodities 14,000 14,000 12,908 (1,092)
Central services 48,696 48,696 47,744 (952)
Total finance 833,624 833,624 802,792 (30,832)
Community development:
Personal services 1,284,929 1,284,929 1,285,908 979
Contractual services 237,200 237,200 130,941 (106,259)
Commodities 6,700 6,700 5,003 (1,697)
Central services 118,116 118,116 115,115 (3,001)
Total community development 1,646,945 1,646,945 1,536,967 (109,978)
Total general government 6,272,342 6,272,342 6,155,261 (117,081)
Public safety:
Police:
Personal services 8,680,196 8,680,196 8,553,869 (126,327)
Contractual services 1,071,175 1,071,175 967,678 (103,497)
Commodities 94,715 94,715 130,201 35,486
Central services 1,199,460 1,199,460 1,147,066 (52,394)
Total police 11,045,546 11,045,546 10,798,814 (246,732)
Fire:
Personal services 6,119,773 6,119,773 6,319,829 200,056
Contractual services 555,300 555,300 501,131 (54,169)
Commodities 233,900 233,900 270,729 36,829 Central services 548,280 548,280 518,148 (30,132)
Total fire 7,457,253 7,457,253 7,609,837 152,584
Total public safety 18,502,799 18,502,799 18,408,651 (94,148)
Budgeted Amounts
74
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2016
2016
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
Public works:
Public works:
Personal services 4,529,113$ 4,529,113$ 4,481,131$ (47,982)$
Contractual services 1,375,600 1,375,600 1,170,335 (205,265)
Commodities 1,438,175 1,438,175 1,373,190 (64,985)
Central services 1,583,712 1,583,712 1,440,133 (143,579)
Total public works 8,926,600 8,926,600 8,464,789 (461,811)
Engineering:
Personal services 1,324,261 1,324,261 1,244,882 (79,379)
Contractual services 116,500 116,500 91,552 (24,948)
Commodities 25,000 25,000 21,501 (3,499)
Central services 119,448 119,448 111,770 (7,678)
Total engineering 1,585,209 1,585,209 1,469,705 (115,504)
Total public works 10,511,809 10,511,809 9,934,494 (577,315)
Parks:
Parks & recreation:
Personal services 963,814 963,814 978,670 14,856
Contractual services 254,022 254,022 349,132 95,110
Commodities 86,250 86,250 108,409 22,159 Central services 70,836 70,836 69,186 (1,650)
Total parks & recreation 1,374,922 1,374,922 1,505,397 130,475
Total parks 1,374,922 1,374,922 1,505,397 130,475
Total expenditures 36,661,872 36,661,872 36,003,803 (658,069)
Revenues over (under) expenditures (100,000) (100,000) 3,576,470 3,676,470
Other financing sources (uses):
Transfer from other funds 100,000 100,000 100,000 -
Transfer to other funds - (804,542) (804,542) -
Total financing sources (uses) 100,000 (704,542) (704,542) -
Net increase (decrease) in fund balance -$ (804,542)$ 2,871,928 3,676,470$
Fund balance - January 1 14,320,383
Fund balance - December 31 17,192,311$
75
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2016
2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Tax increment collections 2,500,000$ 2,500,000$ 2,779,097$ 279,097$
Intergovernmental - - 50,000 50,000
Investment income 77,000 77,000 82,091 5,091
Charges for services 50,000 50,000 31,094 (18,906)
Other revenues - - 2,000,000 2,000,000
Total revenues 2,627,000 2,627,000 4,942,282 2,315,282
Expenditures:
Personal services 123,970 123,970 126,432 2,462
Contractual services 655,865 655,865 385,699 (270,166)
Commodities 1,000 1,000 340 (660)
Capital outlay 4,000,000 4,000,000 652,024 (3,347,976)
Total expenditures 4,780,835 4,780,835 1,164,495 (3,616,340)
Net increase (decrease) in fund balance (2,153,835)$ (2,153,835)$ 3,777,787 5,931,622$
Fund balance - January 1 8,021,960
Fund balance - December 31 11,799,747$
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, 2016
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, 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%
January 1, 2016 2,546,522$ -$ 2,546,522$ 0.0% 21,590,000$ 11.8%
77
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
12/31/2015 6/30/2015 0.2683% 13,765,652$ -$ 13,765,652$ 15,508,173$ 88.76% 78.20%
12/31/2016 6/30/2016 0.2656% 21,349,748 278,868 21,628,616 16,481,973 131.23% 68.91%
12/31/2015 1,248,845$ 1,248,845$ -$ 16,651,267$ 7.50%
12/31/2016 1,265,817 1,265,817 - 16,877,560 7.50%
Note 2: Changes in Actuarial Assumptions. (1) 2015 Changes - The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2030
and 2.50 percent per year thereafter to 1.00 percent per year through 2035 and 2.50 percent per year thereafter. (2) 2016 Changes - The assumed post-retirement benefit
increase rate was changed from 1.00 percent per year through 2035 and 2.50 percent per year thereafter to 1.00 percent per year for all future years. The assumed investment
return was changed from 7.90 percent to 7.50 percent. The single discount rate was changed from 7.90 percent to 7.50 percent. Other assumptions were changed pursuant to
the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation decreased by 0.25 percent to 3.25 percent for payroll growth and
2.50 percent for inflation.
Note 1: Changes in Plan Provisions. On January 1, 2015, the Minneapolis Employees Retirement Fund was merged in the GERF, which increased the total pension liability by
$1.1 billion and increased the fiduciary plan net position to $892 million. Upon consolidation, state and employer contributions were revised.
Note 3: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present 10-year trend information.
Additional years will be added as they become available.
City Fiscal Year End Date
PERA Fiscal Year End Date (Measurement Date)City's Covered Payroll
City Fiscal
Year End
Date
Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
City's Proportion of the Net Pension Liability
City's Proportionate Share of the Net Pension Liability
Contributions in Relation to
the Statutorily
Required
Contributions
Schedule of City Contributions
State's
Proportionate
Share of the Net Pension Liability Associated with the City
City's Proportionate Share
of the Net Pension Liability and the State's Proportionate Share of the Net Pension Liability Associated with the City
City's
Proportionate
Share of the Net Pension Liability as a Percentage of Covered Payroll
Plan Fiduciary
Net Position
as a Percentage of the total Pension Liability
Schedule of City's and Non-Employer Proportionate Share of Net Pension Liability
Covered
Payroll
Contributions as a
Percentage of Covered
Payroll
78
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
12/31/2015 6/30/2015 0.8070% 9,169,408$ 7,797,803$ 117.59% 86.60%
12/31/2016 6/30/2016 0.7990% 32,065,260 7,699,821 416.44% 63.88%
12/31/2015 1,268,476$ 1,268,476$ -$ 7,830,099$ 16.20%
12/31/2016 1,272,485 1,272,485 - 7,854,846 16.20%
Note 1: Changes in Plan Provisions. The post-retirement benefit increase to be paid after attainment of the 90.0 percent funding threshold
was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
Note 3: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended
to present 10-year trend information. Additional years will be added as they become available.
Schedule of City Contributions
City Fiscal
Year End
Date
Statutorily
Required
Contributions
Contributions
in Relation to
the Statutorily
Required
Contributions
Contribution
Deficiency
(Excess)
Covered
Payroll
Contributions as a
Percentage of Covered
Payroll
Note 2: Changes in Actuarial Assumptions. (1) 2015 Changes - The assumed post-retirement benefit increase rate was changed from
1.00 percent per year through 2030 and 2.50 percent per year thereafter to 1.00 percent per year through 2037 and 2.50 percent per year
thereafter. (2) 2016 Changes - The assumed post-retirement benefit increase rate was changed from 1.00 percent per year through 2037
and 2.50 percent per year thereafter to 1.00 percent per year for all future years. The assumed investment return was changed from 7.90
percent to 7.50 percent. The single discount rate was changed from 7.90 percent to 5.60 percent. The assumed future salary increases,
payroll growth, and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and 2.50 percent for inflation.
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
City's Covered
Payroll
City's Proportionate
Share of the Net
Pension Liability as a
Percentage of Covered
Payroll
Plan Fiduciary Net
Position as a
Percentage of the
total Pension Liability
79
CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2016
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 all governmental 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, 2016
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
Administration 1,896,810$ 1,915,628$ 18,818$
Communications & technology 1,104,618 1,106,679 2,061
Human resources 790,345 793,195 2,850
Public Safety
Fire 7,457,253 7,609,837 152,584
Parks
Parks & recreation 1,374,922 1,505,397 130,475
Excess expenditures in the General Fund fire department are due to an increase in salaries primarily
related to more overtime worked and higher healthcare expenses than anticipated.
Excess expenditures in the General Fund parks and recreation department are due to increased programming expenses that resulted in additional revenue.
The remaining governmental funds budgets are legally adopted on a basis consistent with accounting
principles generally accepted in the United States of America. The legal level of budgetary control is at the fund level for these funds. The following is a listing of funds whose expenditures exceed budget
appropriations.
Final Over
Budget Actual Budget
Debt Service Fund 7,552,545$ 7,607,202$ 54,657$
Construction Fund 12,078,243 14,187,148 2,108,905
PACS Fund 1,252,566 2,337,868 1,085,302
Police SR Fund 174,000 181,489 7,489
Braemar Memorial Fund - 1,638 1,638
Environmental Efficiency Fund 104,000 143,508 39,508
Excess expenditures in the construction fund are the result of unbudgeted projects, with expenditures
offset by alternative funding sources such as intergovernmental funding and state aid maintenance.
Excess expenditures in the PACS and environmental efficiency funds are due to project costs being higher 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.
Conservation and Sustainability Fund - This fund was established to account for
funds received from gas and electric franchise fees to be used for initiatives
focused on conservation and sustainability.
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, MINNESOTACOMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
Capital
Projects
Community Police Pedestrian Conservation Total Nonmajor
Development Special Braemar and Cyclist Arts and and Environmental Governmental
Block Grant Revenue Memorial Safety Culture Sustainability Efficiency Funds
Assets
Cash and investments -$ 537,773$ 147,373$ -$ 9,592$ 115,578$ 220,519$ 1,030,835$
Accrued interest - - 430 2,049 17 215 830 3,541 Accounts receivable - 525 280 292,628 - 60,861 - 354,294 Due from other governments - 9,338 - - 127 - - 9,465 Total assets -$ 547,636$ 148,083$ 294,677$ 9,736$ 176,654$ 221,349$ 1,398,135$
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:Accounts payable -$ 5,771$ -$ 580$ 54$ -$ -$ 6,405$
Salaries payable - - - 2,278 - 1,909 - 4,187
Contracts payable - - - 38,729 - - 11,839 50,568
Due to other funds - - - 443,935 - - 443,935
Total liabilities - 5,771 - 485,522 54 1,909 11,839 505,095
Deferred inflows of resources
Unavailable revenue - taxes - - - - 127 - - 127
Fund balance (deficits):
Restricted - 541,865 148,083 - 9,555 174,745 209,510 1,083,758
Unassigned - - - (190,845) - - - (190,845)
Total fund balance (deficits) - 541,865 148,083 (190,845) 9,555 174,745 209,510 892,913
Total liabilities, deferred
inflows of resources,
and fund balance -$ 547,636$ 148,083$ 294,677$ 9,736$ 176,654$ 221,349$ 1,398,135$
Special Revenue
84
CITY OF EDINA, MINNESOTACOMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
Capital
Projects
Community Police Pedestrian Conservation Total Nonmajor
Development Special Braemar and Cyclist Arts and and Environmental Governmental
Block Grant Revenue Memorial Safety Culture Sustainability Efficiency Funds
Revenues:
General property taxes -$ -$ -$ -$ 20,000$ -$ -$ 20,000$
Franchise taxes - - - 1,173,187 - 202,619 - 1,375,806
Intergovernmental 95,975 15,000 - 209,307 - - 41,197 361,479
Fines and forfeitures - 70,618 - - - - - 70,618
Investment income - 22 1,008 6,111 57 825 - 8,023
Other revenues - 112,061 6,485 45,250 2,876 450 - 167,122
Total revenues 95,975 197,701 7,493 1,433,855 22,933 203,894 41,197 2,003,048
Expenditures:Current:
General government 95,975 - - - - 29,149 - 125,124
Public safety - 131,882 - - - - - 131,882
Public works - - - 131,878 - - - 131,878
Parks - - 243 - 16,126 - - 16,369
Capital Outlay:
Public safety - 49,607 - - - - - 49,607
Public works - - - 2,205,990 - - 113,871 2,319,861
Parks - - 1,395 - - - 29,637 31,032
Total expenditures 95,975 181,489 1,638 2,337,868 16,126 29,149 143,508 2,805,753
Revenues over (under)
expenditures - 16,212 5,855 (904,013) 6,807 174,745 (102,311) (802,705)
Other financing sources (uses):
Transfers out - - - - - - (16,850) (16,850)
Net increase (decrease)
in fund balance - 16,212 5,855 (904,013) 6,807 174,745 (119,161) (819,555)
Fund balance -
January 1 - 525,653 142,228 713,168 2,748 - 328,671 1,712,468
Fund balance (deficits) -
December 31 -$ 541,865$ 148,083$ (190,845)$ 9,555$ 174,745$ 209,510$ 892,913$
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 125,000$ 125,000$ 95,975$ (29,025)$
Expenditures:
Current:
Contractual services 125,000 125,000 95,975 (29,025)
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 36,000$ 36,000$ 15,000$ (21,000)$
Fines and forfeiture - - 70,618 70,618
Investment income 300 300 22 (278)
Other revenues 134,061 134,061 112,061 (22,000)
Total revenues 170,361 170,361 197,701 27,340
Expenditures:
Current:
Contractual services 104,000 104,000 58,520 (45,480)
Commodities 15,000 15,000 73,362 58,362
Capital outlay 55,000 55,000 49,607 (5,393)
Total expenditures 174,000 174,000 181,489 7,489
Net increase (decrease) in fund balance (3,639)$ (3,639)$ 16,212 19,851$
Fund balance - January 1 525,653
Fund balance - December 31 541,865$
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Investment income 200$ 200$ 1,008$ 808$
Donations 5,000 5,000 6,485 1,485
Total revenues 5,200 5,200 7,493 2,293
Expenditures:
Current:
Contractual services - - 243 243
Capital outlay - - 1,395 1,395
Total expenditures - - 1,638 1,638
Net increase (decrease) in fund balance 5,200$ 5,200$ 5,855 655$
Fund balance - January 1 142,228
Fund balance - December 31 148,083$
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 1,200,000$ 1,200,000$ 1,173,187$ (26,813)$
Intergovernmental - - 209,307 209,307
Investment income - - 6,111 6,111
Other revenues - - 45,250 45,250
Total revenues 1,200,000 1,200,000 1,433,855 233,855
Expenditures:
Current:
Personal services 112,566 112,566 112,139 (427)
Contractual services 20,000 20,000 19,292 (708)
Commodities 20,000 20,000 447 (19,553)
Central services - - - -
Capital outlay 1,100,000 1,100,000 2,205,990 1,105,990
Total expenditures 1,252,566 1,252,566 2,337,868 1,085,302
Net increase (decrease) in fund balance (52,566)$ (52,566)$ (904,013) (851,447)$
Fund balance - January 1 713,168
Fund balance (deficits) - December 31 (190,845)$
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 20,000$ 20,000$ 20,000$ -$
Investment income - - 57 57
Other revenues 4,850 4,850 2,876 (1,974)
Total revenues 24,850 24,850 22,933 (1,917)
Expenditures:
Current:
Personal services - - 63 63
Contractual services 20,400 20,400 15,044 (5,356)
Commodities 2,025 2,025 1,019 (1,006)
Total expenditures 22,425 22,425 16,126 (6,299)
Net increase (decrease) in fund balance 2,425$ 2,425$ 6,807 4,382$
Fund balance - January 1 2,748
Fund balance - December 31 9,555$
Budgeted Amounts
90
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - CONSERVATION AND SUSTAINABILITY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 200,000$ 200,000$ 202,619$ 2,619$
Investment income - - 825 825
Other revenues - - 450 450
Total revenues 200,000 200,000 203,894 3,894
Expenditures:
Current:
Personal services 103,126 103,126 27,328 (75,798)
Contractual services 35,000 35,000 - (35,000)
Commodities 15,000 15,000 1,821 (13,179)
Total expenditures 153,126 153,126 29,149 (123,977)
Net increase (decrease) in fund balance 46,874$ 46,874$ 174,745 127,871$
Fund balance - January 1 -
Fund balance - December 31 174,745$
Budgeted Amounts
91
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental -$ -$ 41,197$ 41,197$
Expenditures:
Current:
Capital outlay 104,000 104,000 143,508 39,508
Revenues over (under) expenditures (104,000) (104,000) (102,311) 1,689
Other financing sources (uses):
Transfers out - - (16,850) (16,850)
Net increase (decrease) in fund balance (104,000)$ (104,000)$ (119,161) (15,161)$
Fund balance - January 1 328,671
Fund balance - December 31 209,510$
Budgeted Amounts
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 5,075,171$ 5,075,171$ 4,998,092$ (77,079)$
Special assessments - - 224,778 224,778
Investment income 10,000 10,000 6,080 (3,920)
Total revenues 5,085,171 5,085,171 5,228,950 143,779
Expenditures:
Debt Service 7,552,545 7,552,545 7,607,202 54,657
Revenues over (under) expenditures (2,467,374) (2,467,374) (2,378,252) 89,122
Other financing sources (uses):
Transfers in 2,630,628 2,630,628 2,400,000 (230,628)
Bonds issued - - 171,933 171,933
Refunding bonds issued - - 3,635,000 3,635,000
Premium on bonds issued - - 232,276 232,276
Discount on bonds issued - - (8,064) (8,064)
Total other financing
sources (uses) 2,630,628 2,630,628 6,431,145 3,800,517
Net increase (decrease) in fund balance 163,254$ 163,254$ 4,052,893 3,889,639$
Fund balance - January 1 7,134,575
Fund balance - December 31 11,187,468$
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, 2016
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 1,680,000$ 1,680,000$ 1,654,525$ (25,475)$
Franchise taxes 105,000 105,000 99,927 (5,073)
Special assessments 4,127,890 4,127,890 5,051,416 923,526
License and permits 90,000 90,000 75,585 (14,415)
Intergovernmental 3,090,000 3,090,000 3,964,655 874,655
Charges for services 35,000 35,000 208,401 173,401
Investment income 70,000 70,000 123,055 53,055
Other revenues 100,000 100,000 305,212 205,212
Total revenues 9,297,890 9,297,890 11,482,776 2,184,886
Expenditures:
Personal services 102,803 102,803 108,423 5,620
Contractual services 214,760 214,760 297,177 82,417
Commodities 26,149 26,149 44,649 18,500
Central services 1,968 1,968 1,848 (120)
Capital outlay 11,732,563 11,732,563 13,735,051 2,002,488
Total expenditures 12,078,243 12,078,243 14,187,148 2,108,905
Revenues over (under) expenditures (2,780,353) (2,780,353) (2,704,372) 75,981
Other financing sources (uses):
Transfers in 200,000 200,000 1,004,542 804,542
Transfers out (2,630,628) (2,630,628) (2,583,577) 47,051
Sale of capital assets - - 65,044 65,044
Bonds issued 3,852,396 3,852,396 3,768,067 (84,329)
Premium on bonds issued - - 218,133 218,133
Discount on bonds issued - - (8,741) (8,741)
Total other financing -
sources (uses) 1,421,768 1,421,768 2,463,468 1,041,700
Net increase (decrease) in fund balance (1,358,585)$ (1,358,585)$ (240,904) 1,117,681$
Fund balance - January 1 13,350,342
Fund balance - December 31 13,109,438$
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, 2016
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Assets
Current assets:
Cash and investments 260,304$ 1,845,618$ 853,321$ 360,358$ 3,319,601$
Interest receivable 658 5,320 2,138 1,070 9,186
Accounts receivable - 4,982 1,517 6,413 12,912
Due from other funds - - - 44,719 44,719
Inventory 6,986 - - - 6,986
Total current assets 267,948 1,855,920 856,976 412,560 3,393,404
Noncurrent assets:
Net capital assets 90,471 1,138,142 251,450 8,510,233 9,990,296
Deferred outflows of resources:
Defined benefit pension plans 180,186 270,278 180,186 90,093 720,743
Total assets and deferred
outflows of resources 538,605 3,264,340 1,288,612 9,012,886 14,104,443
Liabilities:
Current liabilities:
Accounts payable 11,967 27,089 16,251 13,873 69,180
Salaries payable 5,133 18,929 11,827 1,563 37,452
Contracts payable - 22,676 - 2,104 24,780
Due to other governments 711 8,949 1,039 4,844 15,543
Unearned revenue 9,215 30 - - 9,245
Compensated absences payable 10,664 10,732 32,091 - 53,487
Total current liabilities 37,690 88,405 61,208 22,384 209,687
Noncurrent liabilities:
Net OPEB obligation 8,403 17,457 16,115 - 41,975
Net pension liability 431,308 646,962 431,308 215,654 1,725,232
Compensated absences payable 15,996 16,097 48,137 - 80,230
Total noncurrent liabilities 455,707 680,516 495,560 215,654 1,847,437
Deferred inflows of resources:
Defined benefit pension plans 50,759 76,139 50,759 25,380 203,037
Total liabilities and deferred
inflows of resources 544,156 845,060 607,527 263,418 2,260,161
Net position:
Net investment in capital assets 90,471 1,115,466 251,450 8,508,129 9,965,516
Unrestricted (96,022) 1,303,814 429,635 241,339 1,878,766
Total net position (5,551)$ 2,419,280$ 681,085$ 8,749,468$ 11,844,282$
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, 2016
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Operating revenues:
Sales - retail 49,037$ -$ -$ -$ 49,037$
Sales - concessions 391 135,136 23,069 - 158,596
Memberships 14,937 125,641 - - 140,578
Admissions - 617,991 - 10,234 628,225
Building rental - 251,127 108,405 388,367 747,899
Rental of equipment - 12,017 159,608 - 171,625
Greens fees - - 232,700 - 232,700
Class registration & other fees 421,864 224,506 415,639 106 1,062,115
Total operating revenues 486,229 1,366,418 939,421 398,707 3,190,775
Operating expenses:
Cost of sales and services 1,766 79,385 11,149 - 92,300
Personal services 492,501 704,082 620,235 80,491 1,897,309
Contractual services 92,730 288,240 157,147 142,499 680,616
Commodities 77,502 124,011 124,922 17,200 343,635
Central Services 39,394 67,005 58,503 11,464 176,366
Depreciation 23,929 180,549 39,595 418,792 662,865
Total operating expenses 727,822 1,443,272 1,011,551 670,446 3,853,091
Operating income (loss) (241,593) (76,854) (72,130) (271,739) (662,316)
Nonoperating revenues (expenses):
Investment income 1,890 16,501 6,277 4,114 28,782
Donations 24,168 - 12,500 - 36,668
Miscellaneous - - 2,854 - 2,854
Total nonoperating
revenues (expenses) 26,058 16,501 21,631 4,114 68,304
Income (loss) before transfers (215,535) (60,353) (50,499) (267,625) (594,012)
Transfers:
Transfers in 116,850 25,837 73,210 124,669 340,566
Change in net position (98,685) (34,516) 22,711 (142,956) (253,446)
Net position - January 1 93,134 2,453,796 658,374 8,892,424 12,097,728
Net position - December 31 (5,551)$ 2,419,280$ 681,085$ 8,749,468$ 11,844,282$
99
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2016
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Cash flows from operating activities:Receipts from customers and users 486,079$ 1,369,157$ 937,904$ 538,478$ 3,331,618$
Payment to suppliers (213,458) (555,532) (346,919) (221,466) (1,337,375) Payment to employees (451,655) (650,100) (586,943) (65,127) (1,753,825)
Donations received 24,168 - 12,500 - 36,668
Miscellaneous received - - 2,854 - 2,854
Net cash provided by (used in)
operating activities (154,866) 163,525 19,396 251,885 279,940
Cash flows from noncapital financing activities:
Transfer from other funds 116,850 25,837 73,210 124,669 340,566
Proceeds from interfund borrowing - - - 7,103 7,103
Payment of interfund borrowing - - - (44,719) (44,719)
Net cash provided by noncapitalfinancing activities 116,850 25,837 73,210 87,053 302,950
Cash flows from capital and related financing activities:
Acquisition of capital assets - (195,161) - (390,726) (585,887)
Cash flows from investing activities:
Interest received 1,958 15,661 6,340 3,044 27,003
Net increase (decrease) in cash
and investments (36,058) 9,862 98,946 (48,744) 24,006
Cash and investments - January 1 296,362 1,835,756 754,375 409,102 3,295,595
Cash and investments - December 31 260,304$ 1,845,618$ 853,321$ 360,358$ 3,319,601$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss) (241,593)$ (76,854)$ (72,130)$ (271,739)$ (662,316)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation 23,929 180,549 39,595 418,792 662,865
Donations 24,168 - 12,500 - 36,668
Miscellaneous revenue (expense) - - 2,854 - 2,854
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables - 2,739 (1,517) 139,771 140,993
Decrease (increase) in inventory 1,665 - - - 1,665 Decrease (increase) in deferred outflows
of resources (140,781) (211,171) (140,781) (70,391) (563,124) Increase (decrease) in accounts payable (3,401) 2,509 4,024 (52,850) (49,718)
Increase (decrease) in salaries payable 879 5,207 4,241 925 11,252 Increase (decrease) in due to
other governments (330) 600 778 2,547 3,595 Increase (decrease) in unearned revenue (150) - - - (150)
Increase (decrease) in net OPEB obligation 1,480 2,084 852 - 4,416
Increase (decrease) in net pension liability 153,214 229,821 153,214 76,607 612,856
Increase (decrease) in
compensated absences 9,609 3,373 (679) - 12,303
Increase (decrease) in deferred inflows
of resources 16,445 24,668 16,445 8,223 65,781
Total adjustments 86,727 240,379 91,526 523,624 942,256
Net cash provided by (used in) operating activities (154,866)$ 163,525$ 19,396$ 251,885$ 279,940$
Noncash investing activities:
Increase (decrease) in
fair value of investments (552) (4,621) (1,810) (1,034) (8,017)
Noncash noncapital financing activities:
Acquisition of capital assets withcontracts payable - 120,908 - 321,923 442,831
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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CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2016
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 375,615$ 1,928,083$ 1,596,883$ 706,815$
Liabilities:
Accounts payable 7,270$ 291,622$ 275,704$ 23,188$
Contracts payable -$ 1,034,289$ 741,916$ 292,373
Salaries payable 4,265 278,423 277,447 5,241
Due to other governmental units 364,080 323,749 301,816 386,013
Total Liabilities 375,615$ 1,928,083$ 1,596,883$ 706,815$
PAYROLL
Assets:
Cash and investments 15,040$ 18,668,940$ 18,667,674$ 16,306$
Liabilities:
Accounts payable 15,040$ 18,668,940$ 18,667,674$ 16,306$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and investments 391,362$ 20,597,023$ 20,264,557$ 723,828$
Liabilities:
Accounts payable 22,310$ 18,960,562$ 18,943,378$ 39,494$
Contracts payable - 1,034,289 741,916 292,373
Salaries payable 4,265 278,423 277,447 5,241
Due to other governmental units 364,787 323,749 301,816 386,720
Total Liabilities 391,362$ 20,597,023$ 20,264,557$ 723,828$
103
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104
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2013 2014 2015 2016 2017
Total tax capacity 106,529,983$ 108,069,277$ 117,907,214$ 125,663,820$ 132,180,439$
Increment valuation (4,194,083) (4,948,237) (1,618,920) (2,493,368) (3,474,097)
Contribution to fiscal
disparities pool (8,831,694) (9,513,808) (9,626,075) (10,679,187) (11,851,919)
Tax capacity used
for rate calculation 93,504,206 93,607,232 106,662,219 112,491,265 116,854,423
Fiscal disparities distribution 2,615,313 2,548,571 2,540,472 2,636,381 2,901,964
Adjusted net tax capacity 96,119,519$ 96,155,803$ 109,202,691$ 115,127,646$ 119,756,387$
Tax levies:
General fund 21,824,894$ 22,509,403$ 22,933,958$ 25,023,952$ 26,860,319$
Arts & culture fund - - 20,000 20,000 20,000
Equipment 992,072 992,072 1,617,072 1,680,000 2,251,550
Debt service 3,314,581 3,325,597 4,510,380 4,503,521 4,595,500
HRA operating - - - - 95,000
Total certified tax levies 26,131,547 26,827,072 29,081,410 31,227,473 33,822,369
Referendum market value levy 615,837 627,800 618,600 571,650 -
Total levy 26,747,384$ 27,454,872$ 29,700,010$ 31,799,123$ 33,822,369$
Tax capacity rate:
General fund revenue 23.762 24.458 22.477 23.223 24.348
Bonds & interest 3.454 3.462 4.128 3.914 3.841
Total tax capacity rate 27.216 27.920 26.605 27.137 28.189
Market value rate 0.00690 0.00695 0.00631 0.00550 -
105
CITY OF EDINA, MINNESOTACOMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2016
Final
Interest Maturity Original
Rates Date Date Issue Redeemed
General Obligation Bonds:
GO Capital Improvement Plan, Series 2007A 4.00 - 4.25 05/24/07 02/01/28 5,865,000 1,550,000
GO Capital Improvement Plan, Series 2009A 3.00 - 4.40 04/29/09 02/01/30 14,000,000 2,700,000
GO Capital Improvement Plan, Series 2010A 2.00 - 4.00 11/18/10 02/01/21 8,285,000 3,425,000
GO Capital Improvement Plan, Series 2013A -
Refunding 3.00 - 3.50 10/10/13 02/01/30 5,710,000 580,000
GO Refunding, Series 2014B 3.00 12/11/14 02/01/17 1,105,000 - GO Refunding, Series 2016A 2.00 - 3.00 07/06/16 02/01/28 - -
Total General Obligation Bonds 34,965,000 8,255,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 645,000
GO Permanent Improvement Revolving
Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 605,000
GO Permanent Improvement Revolving
Series 2012A 3.00 - 4.00 11/15/12 02/01/29 2,675,000 140,000 GO Permanent Improvement Revolving
Series 2012A - Refunding 3.00 - 4.00 11/15/12 02/01/19 1,990,000 665,000
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 6,545,000 - GO Permanent Improvement Revolving
Series 2015A - Parking 2.00 - 4.00 07/09/15 02/01/36 2,495,000 - GO Permanent Improvement Revolving
Series 2016A 2.00 - 3.00 07/06/16 02/01/33 - -
Total PIR Bonds 25,960,000 2,055,000
Public Project Revenue Bonds:
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 3,490,000 -
Total Public Project Revenue Bonds 22,240,000 950,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A 7.00 02/25/12 01/01/23 33,690 10,107 Edina Emerald Energy Progrm Revenue, 2012B 5.50 08/28/12 01/01/18 40,030 24,018
Total Public Project Revenue Bonds 73,720 34,125
Revenue Bonds:
Recreational Facility Bonds, Series 2009B 2.00 - 3.00 04/29/09 01/01/17 2,010,000 1,845,000
Recreational Facility Bonds, Series 2009C 2.00 - 4.00 12/10/09 02/01/30 2,440,000 480,000 Recreational Facility Bonds, Series 2012B .45 - 1.60 11/15/12 02/01/20 815,000 235,000
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 50,000
Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 2,140,000 -
Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 3,080,000
Utility Revenue Bonds, Series 2012A 3.00 - 4.00 11/15/12 02/01/23 6,100,000 1,010,000 Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 570,000
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 5,235,000 - Utility Revenue Bonds, Series 2016A 2.00 - 3.00 07/06/16 02/01/27 - -
Total Public Project Revenue Bonds 46,415,000 7,270,000
Total - Bonded indebtedness 129,653,720$ 18,564,125$
Prior Years
106
Principal Interest Interest
Outstanding Payable Due Due Payable
12/31/2015 Issued Payments 12/31/2016 In 2017 In 2017 to Maturity
4,315,000 - 260,000 4,055,000 4,055,000 83,272 83,272
11,300,000 - 590,000 10,710,000 605,000 400,399 3,318,184
4,860,000 - 730,000 4,130,000 760,000 150,000 426,600
5,130,000 - 280,000 4,850,000 285,000 139,950 1,092,988
1,105,000 - 550,000 555,000 555,000 8,325 8,325 - 3,635,000 - 3,635,000 - 106,035 649,435
26,710,000 3,635,000 2,410,000 27,935,000 6,260,000 887,981 5,578,804
1,660,000 - 225,000 1,435,000 225,000 34,450 121,525
2,715,000 - 315,000 2,400,000 320,000 59,000 244,200
2,535,000 - 145,000 2,390,000 150,000 73,350 504,025
1,325,000 - 355,000 970,000 385,000 31,100 51,800
2,555,000 - 140,000 2,415,000 140,000 69,700 545,425
4,075,000 - 745,000 3,330,000 790,000 79,250 173,500
6,545,000 - - 6,545,000 - 202,675 1,941,363
2,495,000 - - 2,495,000 95,000 79,100 947,901
- 3,940,000 - 3,940,000 - 117,158 1,099,534
23,905,000 3,940,000 1,925,000 25,920,000 2,105,000 745,783 5,629,273
1,645,000 - - 1,645,000 - 66,810 473,809
16,155,000 - 615,000 15,540,000 630,000 478,419 5,315,785
3,490,000 - 285,000 3,205,000 275,000 88,399 473,512
21,290,000 - 900,000 20,390,000 905,000 633,628 6,263,106
23,583 - 3,369 20,214 - 708 4,953 16,012 - 8,006 8,006 - 220 440
39,595 - 11,375 28,220 - 928 5,393
165,000 - 80,000 85,000 85,000 1,275 1,275
1,960,000 - 105,000 1,855,000 105,000 69,625 556,550 580,000 - 125,000 455,000 125,000 5,280 12,119
2,100,000 - - 2,100,000 - 53,794 579,503
1,075,000 - 65,000 1,010,000 65,000 30,540 223,718
2,140,000 - - 2,140,000 120,000 57,444 508,478
8,150,000 - 1,090,000 7,060,000 1,115,000 166,600 598,575
5,090,000 - 555,000 4,535,000 575,000 142,650 522,325 5,110,000 - 520,000 4,590,000 530,000 110,250 511,275
1,830,000 - 895,000 935,000 935,000 14,025 14,025
5,710,000 - 1,340,000 4,370,000 1,410,000 109,950 199,500
5,235,000 - 525,000 4,710,000 475,000 128,150 704,550 - 8,775,000 - 8,775,000 - 258,498 1,456,254
39,145,000 8,775,000 5,300,000 42,620,000 5,540,000 1,148,081 5,888,147
111,089,595$ 16,350,000$ 10,546,375$ 116,893,220$ 14,810,000$ 3,416,401$ 23,364,723$
2016
107
CITY OF EDINA, MINNESOTA
SCHEDULE OF BALANCE SHEET ACCOUNTS
TAX INCREMENT FINANCING DISTRICTS
December 31, 2016
Total
District District District District District Tax Increment
No. 1202 No. 1203 No. 1207 No. 1208 No. 1211 Financing Districts
Assets
Cash and Investments 71,769$ 5,858,246$ 354,551$ 3,419,037$ 87,568$ 9,791,171$
Accrued interest 439 16,781 1,052 6,530 243 25,045
Due from other districts - 3,975,000 - - - 3,975,000
Due from other governments - 100,000 - - - 100,000 Total assets 72,208$ 9,950,027$ 355,603$ 3,425,567$ 87,811$ 13,891,216$
Liabilities
Accounts payable 18,412$ 93,519$ -$ 5,827$ 615$ 118,373$
Salaries payable - 1,934 - - - 1,934
Due to other districts - - - 3,875,000 100,000 3,975,000
Total liabilities 18,412 95,453 - 3,880,827 100,615 4,095,307
Fund balance:
Restricted 53,796 9,854,574 355,603 (455,260) (12,804) 9,795,909
Total liabilities and
fund balance 72,208$ 9,950,027$ 355,603$ 3,425,567$ 87,811$ 13,891,216$
108
CITY OF EDINA, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TAX INCREMENT FINANCING DISTRICTS
For The Year Ended December 31, 2016
Total
District District District District District Tax Increment
No. 1202 No. 1203 No. 1207 No. 1208 No. 1211 Financing Districts
Revenues:
Tax increment collections -$ -$ -$ 2,779,097$ -$ 2,779,097$
Intergovernmental - 50,000 - - - 50,000
Charges for services - 31,094 - - - 31,094
Investment income 866 50,287 3,234 22,928 938 78,253
Total revenues 866 131,381 3,234 2,802,025 938 2,938,444
Expenditures:
Current:
General government 195,313 282,001 - 29,765 5,392 512,471
Capital outlay:
General government - 190,829 - 273,768 - 464,597
Public works - 187,427 - - - 187,427
Total expenditures 195,313 660,257 - 303,533 5,392 1,164,495
Revenues over
(under) expenditures (194,447) (528,876) 3,234 2,498,492 (4,454) 1,773,949
Other financing sources (uses):
Interfund loan interest - 174,000 - (174,000) - -
Net increase (decrease)
in fund balance (194,447) (354,876) 3,234 2,324,492 (4,454) 1,773,949
Fund balance - January 1 248,243 10,209,450 352,369 (2,779,752) (8,350) 8,021,960
Fund balance - December 31 53,796$ 9,854,574$ 355,603$ (455,260)$ (12,804)$ 9,795,909$
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)
2007 2008 2009 2010
Governmental activities
Net investment in capital assets 67,680,882$ 71,601,227$ 69,622,370$ 69,783,162$
Restricted - 3,362,446 7,132,865 9,952,443
Unrestricted 25,136,312 29,577,462 30,705,600 41,709,528
Total governmental
activities net position 92,817,194$ 104,541,135$ 107,460,835$ 121,445,133$
Business-type activities
Net investment in capital assets 43,046,160$ 46,851,736$ 47,333,794$ 48,807,806$
Restricted - 954,486 624,837 618,852
Unrestricted 13,649,355 12,071,776 15,158,720 17,041,122
Total business-type
activities net position 56,695,515$ 59,877,998$ 63,117,351$ 66,467,780$
Primary government
Net investment in capital assets 110,727,042$ 118,452,963$ 116,956,164$ 118,590,968$
Restricted - 4,316,932 7,757,702 10,571,295
Unrestricted 38,785,667 41,649,238 45,864,320 58,750,650
Total primary government
net position 149,512,709$ 164,419,133$ 170,578,186$ 187,912,913$
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
2011 2012 2013a 2014 2015b 2016
75,045,018$ 78,644,392$ 83,842,970$ 85,708,114$ 85,838,618$ 93,247,973$
22,915,776 23,215,910 20,289,579 18,268,724 16,925,171 20,892,680
29,544,149 29,587,700 33,242,317 31,316,605 21,957,830 22,146,168
127,504,943$ 131,448,002$ 137,374,866$ 135,293,443$ 124,721,619$ 136,286,821$
56,877,100$ 63,766,144$ 66,126,387$ 75,803,672$ 83,395,794$ 85,158,869$
623,099 876,909 611,377 619,295 793,664 804,393
12,926,674 14,390,609 16,867,459 21,176,026 16,405,405 17,300,872
70,426,873$ 79,033,662$ 83,605,223$ 97,598,993$ 100,594,863$ 103,264,134$
131,922,118$ 142,410,536$ 149,969,357$ 161,511,786$ 169,234,412$ 178,406,842$
23,538,875 24,092,819 20,900,956 18,888,019 17,718,835 21,697,073
42,470,823 43,978,309 50,109,776 52,492,631 38,363,235 39,447,040
197,931,816$ 210,481,664$ 220,980,089$ 232,892,436$ 225,316,482$ 239,550,955$
Fiscal Year
113
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2007 2008 2009 2010
Expenses
Governmental activities:
General government 7,039,298$ 6,836,248$ 7,362,560$ 6,961,082$
Public safety 13,743,194 14,833,647 14,751,479 15,543,594
Public works 8,757,022 9,046,873 8,993,290 8,558,363 Parks 5,025,560 5,971,565 7,732,777 5,608,758 Interest on long-term debt 1,887,633 1,923,821 2,129,490 2,528,424
Total governmental activities expenses 36,452,707 38,612,154 40,969,596 39,200,221
Business-type activities:
Utilities 10,036,844 10,625,811 11,833,994 11,848,538
Liquor 10,361,998 11,049,223 11,449,194 11,594,643
Aquatic center 780,981 787,663 798,369 769,608 Golf course 3,621,977 3,612,482 3,588,831 3,561,573 Arena 1,538,407 1,689,660 1,665,082 1,527,536 Community activity centers 2,630,127 2,813,189 2,971,293 2,965,243
Total business-type activities expenses 28,970,334 30,578,028 32,306,763 32,267,141
Total primary government expenses 65,423,041$ 69,190,182$ 73,276,359$ 71,467,362$
Program RevenuesGovernmental activities:
Charges for services:
General government 784,659$ 840,070$ 811,087$ 946,107$
Public safety 5,632,642 5,839,683 5,081,563 5,448,505
Other activities 736,329 763,130 804,500 723,559 Operating grants and contributions 1,384,024 1,170,183 1,377,785 1,162,411 Capital grants and contributions 4,299,509 7,710,015 2,582,999 13,325,431
Total governmental activities program revenues 12,837,163 16,323,081 10,657,934 21,606,013
Business-type activities:
Charges for services:
Utilities 13,125,773 13,713,249 14,858,488 15,036,016
Liquor 11,436,175 12,122,599 12,655,777 12,857,064 Aquatic center 868,833 925,388 859,816 945,529 Golf course 3,630,538 3,680,584 3,660,466 3,443,204
Arena 1,414,173 1,399,599 1,414,410 1,301,506
Community activity centers 2,102,938 2,117,619 2,192,274 2,194,476
Operating grants and contributions 127,492 147,456 135,917 373,230
Total business-type activities program revenues 32,705,922 34,106,494 35,777,148 36,151,025
Total primary government program revenues 45,543,085$ 50,429,575$ 46,435,082$ 57,757,038$
Net (Expense)/Revenue
Governmental activities (23,615,544)$ (22,289,073)$ (30,311,662)$ (17,594,208)$
Business-type activities 3,735,588 3,528,466 3,470,385 3,883,884
Total primary government net expense (19,879,956)$ (18,760,607)$ (26,841,277)$ (13,710,324)$
General Revenues and Other Changes in Net Position
Governmental activities:Property taxes 21,459,001$ 22,242,276$ 23,834,274$ 25,122,113$ Tax increment collections 7,793,577 8,578,434 7,587,386 4,488,073
Franchise taxes 570,871 647,466 667,791 692,288
Lodging taxes - - - -
Unrestricted investment earnings 1,581,702 1,185,899 387,177 474,444
Gain on disposal of capital assets 58,377 1,265 11,709 35,594 Insurance recovery - - - - Transfers 919,625 967,800 743,025 765,994
Total governmental activities 32,383,153 33,623,140 33,231,362 31,578,506
Business-type activities:
Property taxes -$ -$ 300,372$ -$
Unrestricted investment earnings 510,678 607,312 209,371 205,965
Gain (loss) on disposal of capital assets 7,604 14,505 2,250 26,574 Transfers (919,625) (967,800) (743,025) (765,994)
Total business-type activities (401,343) (345,983) (231,032) (533,455)
Total primary government 31,981,810$ 33,277,157$ 33,000,330$ 31,045,051$
Change in Net Position
Governmental activities 8,767,609$ 11,334,067$ 2,919,700$ 13,984,298$ Business-type activities 3,334,245 3,182,483 3,239,353 3,350,429
Total primary government 12,101,854$ 14,516,550$ 6,159,053$ 17,334,727$
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
2011 2012 2013a 2014b 2015c 2016
7,013,231$ 12,598,979$ 8,256,261$ 8,522,319$ 8,518,236$ 9,587,567$
16,024,575 16,598,423 17,117,693 18,145,498 19,507,770 20,243,209
9,193,336 9,437,285 11,502,250 15,553,852 15,284,777 19,444,472 5,540,585 5,904,724 6,132,709 3,330,781 3,385,367 3,822,716 2,339,370 2,222,392 2,024,749 1,989,863 2,180,678 2,133,474
40,111,097 46,761,803 45,033,662 47,542,313 48,876,828 55,231,438
12,130,685 12,610,875 13,748,186 14,207,197 14,963,304 16,780,474
11,727,106 11,740,744 12,261,413 12,393,218 11,818,602 12,130,254
718,027 866,944 822,932 827,485 872,960 915,560 3,390,949 3,293,192 3,199,815 3,342,544 3,409,343 3,041,169 1,689,001 2,182,200 2,272,510 2,375,173 2,642,097 2,842,660 2,998,915 2,842,139 2,967,115 2,975,782 3,436,325 3,853,091
32,654,683 33,536,094 35,271,971 36,121,399 37,142,631 39,563,208
72,765,780$ 80,297,897$ 80,305,633$ 83,663,712$ 86,019,459$ 94,794,646$
969,745$ 1,142,984$ 1,259,908$ 1,529,555$ 1,322,430$ 1,453,009$
5,988,485 6,549,929 7,410,755 8,102,352 8,683,465 8,996,046
775,676 913,864 846,999 960,261 1,158,207 1,289,770 1,392,892 1,685,026 2,283,007 1,578,538 3,122,178 2,751,495 5,770,912 9,137,011 6,372,735 8,244,695 10,044,077 15,252,861
14,897,710 19,428,814 18,173,404 20,415,401 24,330,357 29,743,181
15,873,937 17,729,589 17,831,225 17,550,802 19,335,443 19,505,905
13,172,484 13,230,941 13,711,557 13,515,168 12,462,387 12,937,092 913,383 1,001,946 928,055 918,412 971,936 956,068 3,285,741 3,225,591 2,711,743 3,229,348 2,857,190 2,809,702
1,315,435 1,452,435 1,942,971 2,092,567 2,316,853 2,314,892
2,331,136 2,399,090 2,625,633 2,583,257 3,119,789 3,190,775
135,428 1,042,195 516,242 428,416 595,141 445,464
37,027,544 40,081,787 40,267,426 40,317,970 41,658,739 42,159,898
51,925,254$ 59,510,601$ 58,440,830$ 60,733,371$ 65,989,096$ 71,903,079$
(25,213,387)$ (27,332,989)$ (26,860,258)$ (27,126,912)$ (24,546,471)$ (25,488,257)$
4,372,861 6,545,693 4,995,455 4,196,571 4,516,108 2,596,690
(20,840,526)$ (20,787,296)$ (21,864,803)$ (22,930,341)$ (20,030,363)$ (22,891,567)$
25,040,871$ 25,884,662$ 26,894,161$ 27,062,224$ 29,632,072$ 31,396,421$ 4,083,345 3,536,935 3,981,938 5,052,705 1,792,896 2,779,097
722,160 815,530 1,891,967 2,055,396 2,089,038 2,346,423
- - - 11,301 22,716 22,624
601,250 341,986 (96,390) 440,051 195,620 344,277
131,365 - 16,654 29,037 41,900 65,044 - - 816,654 - - - 694,206 696,935 133,907 (9,605,225) (2,230,966) 99,573
31,273,197 31,276,048 33,638,891 25,045,489 31,543,276 37,053,459
-$ -$ -$ -$ -$ -$
280,438 113,177 (77,848) 191,974 91,907 136,208
- 2,644,854 17,587 - 39,427 35,946 (694,206) (696,935) (133,907) 9,605,225 2,230,966 (99,573)
(413,768) 2,061,096 (194,168) 9,797,199 2,362,300 72,581
30,859,429$ 33,337,144$ 33,444,723$ 34,842,688$ 33,905,576$ 37,126,040$
6,059,810$ 3,943,059$ 6,778,633$ (2,081,423)$ 6,996,805$ 11,565,202$ 3,959,093 8,606,789 4,801,287 13,993,770 6,878,408 2,669,271
10,018,903$ 12,549,848$ 11,579,920$ 11,912,347$ 13,875,213$ 14,234,473$
Fiscal Year
115
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2007 2008 2009a 2010
General fund
Reserved 28,637$ 13,982$ 18,241$ 10,258$
Unreserved 14,078,220 14,365,021 12,031,358 12,868,952
Nonspendable - - - -
Restricted - - - -
Assigned - - - -
Unassigned - - - -
Total general fund 14,106,857$ 14,379,003$ 12,049,599$ 12,879,210$
All other governmental funds
Reserved 6,247,539$ 8,467,918$ 15,223,353$ 9,460,834$
Unreserved, reported in:
Special revenue funds 14,750,448 14,950,538 12,813,439 15,333,460
Capital projects funds 5,853,322 4,270,440 6,683,668 12,150,968
Restricted, reported in:
Special revenue funds - - - -
Debt service funds - - - -
Construction funds - - - -
Assigned, reported in:
Capital projects funds - - - -
Unassigned, reported in:
Special revenue funds - - - -
Total all other governmental funds 26,851,309$ 27,688,896$ 34,720,460$ 36,945,262$
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 is due to unspent
bond proceeds related to the current refunding that took place on February 1 of the following year.
Fiscal Year
116
2011b 2012 2013 2014c 2015 2016c
-$ -$ -$ -$ -$ -$
- - - - - -
10,871 413,200 13,322 240,291 529,513 27,643
178,295 880,395 185,395 757,673 417,673 927,673
1,539,286 1,643,077 1,559,461 1,566,329 1,547,398 1,612,240
11,744,764 11,902,462 12,573,457 11,429,444 11,825,799 14,624,755
13,473,216$ 14,839,134$ 14,331,635$ 13,993,737$ 14,320,383$ 17,192,311$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
17,178,857 13,185,962 13,040,516 9,719,309 9,405,757 12,883,505
8,068,183 9,704,408 6,246,769 12,678,291 7,134,575 11,187,468
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 13,109,438
- - - - - (190,845)
35,433,523$ 32,809,723$ 30,960,500$ 36,043,042$ 30,219,345$ 36,989,566$
.
Fiscal Year
117
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2007a 2008 2009 2010
Revenues
General property taxes 21,459,001$ 22,242,276$ 23,834,274$ 25,122,113$
Tax increment collections 7,793,577 8,578,434 7,587,386 4,488,073
Franchise taxes 570,871 647,466 667,791 692,288
Lodging fees - - - -
Special assessments 1,750,444 2,442,490 2,703,833 6,746,186
License and permits 2,909,521 2,915,455 2,104,967 2,410,314
Intergovernmental 3,699,006 3,005,883 1,507,170 3,726,849
Charges for services 2,748,709 3,093,941 2,905,410 3,014,894
Fines and forfeitures 971,486 1,073,174 1,224,983 1,203,767
Investment income 1,581,702 1,185,899 387,177 474,444
Rental of property 355,734 255,607 343,616 426,517
Parkland dedication - - - -
Other revenues 225,839 126,723 160,035 413,400
Total revenues 44,065,890 45,567,348 43,426,642 48,718,845
Expenditures
General government 6,544,307 6,235,352 6,895,329 6,523,398
Public safety 12,985,215 13,788,797 13,692,686 14,177,387
Public works 5,787,619 6,189,594 5,911,758 5,898,023
Parks 3,455,789 3,693,595 3,688,063 3,524,950
Capital outlay: 11,991,122 14,666,907 22,997,065 13,505,827
Debt service
Principal 6,190,000 7,090,000 7,415,000 2,975,000
Interest and other charges 1,677,770 1,967,021 1,841,342 2,584,006
Total expenditures 48,631,822 53,631,266 62,441,243 49,188,591
Revenues over (under) expenditures (4,565,932) (8,063,918) (19,014,601) (469,746)
Other Financing Sources (Uses)
Transfers in 7,290,391 7,983,585 11,347,773 2,903,762
Transfers out (6,370,766) (7,015,785) (10,604,748) (2,137,768)
Sale of capital assets 66,845 96,825 34,592 134,329
Insurance recovery - - - -
Bonds issued 11,735,000 7,755,000 22,950,000 2,535,000
Refunding bonds issued - - - 8,285,000
Premium on bonds issued - - 64,765 898,658
Discount on bonds issued (53,637) (35,848) (75,621) -
Payment to refunding escrow - - - (9,094,822)
Total other financing sources (uses) 12,667,833 8,783,777 23,716,761 3,524,159
Net change in fund balances 8,101,901$ 719,859$ 4,702,160$ 3,054,413$
Debt service as a percentage of
noncapital expenditures 21.5% 22.6% 21.7% 15.4%
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
2011 2012 2013 2014 2015 2016
24,972,166$ 25,838,422$ 26,891,756$ 26,988,493$ 29,535,270$ 31,354,023$
4,083,345 3,536,935 3,981,938 5,052,705 1,792,896 2,779,097
722,160 815,530 1,891,967 2,055,396 2,089,038 2,346,423
- - - 11,301 22,716 22,624
4,502,112 4,975,641 4,884,510 4,606,010 4,132,128 5,276,194
2,724,763 3,155,351 4,150,512 4,583,183 4,907,364 5,268,519
3,059,964 2,032,966 2,509,166 3,961,509 6,093,966 5,775,114
3,181,961 3,708,482 3,667,612 4,270,720 4,414,991 4,689,389
1,243,426 1,195,054 1,109,710 1,163,907 1,195,271 1,016,817
601,250 341,986 (96,390) 440,051 195,314 344,344
539,091 506,276 518,862 546,874 416,522 514,955
- 702,100 - 757,278 800,000 1,250,000
156,231 240,841 278,607 78,775 361,425 2,599,830
45,786,469 47,049,584 49,788,250 54,516,202 55,956,901 63,237,329
5,739,481 6,624,573 7,351,556 7,625,826 6,337,944 6,815,725
14,668,772 14,985,068 15,859,622 16,647,821 17,537,528 18,554,507
6,000,539 6,277,506 7,018,614 10,201,335 10,578,472 10,474,008
3,633,922 3,852,260 3,915,568 1,341,884 1,416,858 1,529,384
14,235,496 13,622,443 10,690,207 19,883,144 19,912,565 16,787,575
4,480,000 6,620,000 14,531,375 4,096,375 13,276,375 5,246,375
2,278,068 2,292,394 2,270,259 1,923,647 2,375,613 2,360,827
51,036,278 54,274,244 61,637,201 61,720,032 71,435,355 61,768,401
(5,249,809) (7,224,660) (11,848,951) (7,203,830) (15,478,454) 1,468,928
5,615,669 4,495,940 3,472,964 1,404,975 3,232,770 3,504,542
(4,921,463) (3,799,005) (3,339,057) (11,010,200) (6,472,066) (3,404,969)
209,773 94,975 61,642 70,603 78,509 65,044
- - 816,654 - 167,167 -
3,320,000 2,748,720 2,555,000 16,155,000 9,040,000 3,940,000
- 1,990,000 5,710,000 5,180,000 3,490,000 3,635,000
108,097 436,148 275,360 327,987 492,838 450,409
- - (60,334) (179,891) (47,815) (16,805)
- - - - - -
4,332,076 5,966,778 9,492,229 11,948,474 9,981,403 8,173,221
(917,733)$ (1,257,882)$ (2,356,722)$ 4,744,644$ (5,497,051)$ 9,642,149$
17.8% 19.4% 32.2% 13.7% 28.9% 16.2%
Fiscal Year
119
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
City Tax CityUsedAdjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
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
10,420,339 10,420,339 10,296,342 125,664 112,491 115,128 27.137% 0.00550% 2.998
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.
2016
Year
2014
2015
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2013
Fiscal Direct
2011
2012
2007
2008
2009
2010
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
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%
23.223% 3.914% 27.137% 0.006% 45.356% 34.898% 0.201% 10.763% 118.154%
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.
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
2016
2011
2012
2007
2008
2009
2010
2013
2014
2015
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 2,727,650$ 1 2.17% 3,497,098$ 1 3.08%
Galleria Shopping Center 2,257,995 2 1.80% 1,300,806 2 1.15%
Southdale Medical Building 1,491,755 3 1.19% 419,014 9 0.37%
Southdale Office Center 906,994 4 0.72% 827,534 3 0.73%
Centennial Lakes Retail 859,250 5 0.68% 0.00%
Centennial Lakes Phase V 703,404 6 0.56% 663,520 4 0.58%
Centennial Lakes Phase IV 689,778 7 0.55% 650,646 5 0.57%
7700 France 543,365 8 0.43% 554,076 6 0.49%
The District 534,756 9 0.43% 0.00%
Westin Galleria 507,449 10 0.40% 0.00%
May Department Stores - 0.00% 513,070 7 0.45%
Centennial Lakes Medical Bldg - 0.00% 443,108 8 0.39%
Centennial Lakes Phase III - 0.00% 406,798 10 0.36%
Totals 11,222,396$ 8.93% 9,275,670$ 8.18%
Source: City of Edina Assessing Office
20072016
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
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% (202,079) 24,865,546 96.43%
26,248,226 25,983,685 98.99% (142,619) 25,841,066 98.45%
26,747,384 26,545,984 99.25% (194,861) 26,351,123 98.52%
27,454,872 27,326,092 99.53% (46,459) 27,279,633 99.36%
29,700,010 29,497,362 99.32% (40,897) 29,456,465 99.18%
31,799,123 31,383,415 98.69% - 31,383,415 98.69%
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.
Total Collections to Date
Taxes
Payable
2011
2012
2016
Collected within the
Fiscal Year of the Levy
2010
2007
2008
2009
2014
2013
2015
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
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 3.62% 2,245 28,560 20,395 - 26,874 28 7,677 36,691 120,225 3.72% 2,368
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
2016
2007
2008
2009
2010
2013
2014
20112012
2015
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
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% 536
28,560 11,187 17,373 0.17% 563
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
2011
2016
2014
2013
2012
200720082009
2010
2015
125
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2016
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 811,375,883$ 7.43% 60,285,228$
Hennepin Suburban Park District 47,787,952 10.32% 4,931,717
Hennepin Regional Rail Authority 32,848,204 10.32% 3,389,935
School Districts:
ISD No. 273 (Edina) 171,809,849 98.50% 169,232,701
ISD No. 270 (Hopkins) 135,244,990 7.61% 10,292,144
ISD No. 271 (Bloomington) 49,733,883 0.01% 4,973
ISD No. 272 (Eden Prairie) 53,008,080 1.01% 535,382
ISD No. 280 (Richfield) 24,664,879 30.23% 7,456,193
ISD No. 283 (St. Louis Park) 37,433,271 0.01% 3,743
Metro Council 38,874,706 3.77% 1,465,576
Total Overlapping Debt 1,402,781,697 257,597,592
City of Edina 75,857,300 100.00% 75,857,300
Total Overlapping and Direct Debt 1,478,638,997$ 333,454,892$
Ratio of debt per capita (50,766 population) 6,568$
Ratio of debt to estimated market valuation of $10,420,339,300 3.20%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
126
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2007 2008a 2009 2010 2011 2012 2013 2014 2015 2016
Debt limit 199,775$ 302,385$ 301,369$ 298,494$ 282,958$ 270,767$ 263,958$ 267,351$ 291,050$ 308,890$
Total net debt
applicable
to limit 26,380 25,095 46,670 45,170 42,860 39,545 37,030 51,760 48,000 48,325
Legal debt
margin 173,395$ 277,290$ 254,699$ 253,324$ 240,098$ 231,222$ 226,928$ 215,591$ 243,050$ 260,565$
Total net debt
applicable to
the limit as a
percentage of
debt limit 13.20% 8.30% 15.49% 15.13% 15.15% 14.60% 14.03% 19.36% 16.49% 15.64%
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.
308,890,246
20,390,000
260,565,246$
Fiscal Year
10,296,341,540$
27,935,000
48,325,000
Legal Debt Margin Calculation for Fiscal Year 2016
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)
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
2016 2,499,521 - 2,499,521 900,000 654,473 1,554,473 1.61
Tax Increment Bonds
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 - - - -
2016 2,779,097 - 2,779,097 - - - -
Permanent Improvement Revolving Bonds (Special Assessment)
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
2016 4,727,881 - 4,727,881 1,925,000 705,628 2,630,628 1.80
Utility Bond
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
2016 19,472,645 16,222,211 3,250,434 4,925,000 814,238 5,739,238 0.57
Recreational Facility Bonds
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)
2016 6,080,529 6,593,312 (512,783) 375,000 231,285 606,285 (0.85)
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
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%
50,766 3,146,680 61,984 97.9% 2.82%
50,766 3,231,154 63,648 97.7% 3.08%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2015 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. 2015 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.
2016
2013
2014
Fiscal
Year
2012
2011
2010
2009
2008
2007
2015
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 10.87% 2,500 2 11.21%
Edina Public Schools ISD #273 1,245 2 5.18% 1,172 4 5.25%
BI Worldwide 1,000 3 4.16% DNA DNA DNA
Regis Corporation 900 4 3.75% DNA DNA DNA
City of Edina 814 5 3.39% 277 7 1.24%
Edina Realty 400 6 1.66% 210 9 0.94%
International Dairy Queen Inc. 400 7 1.66% 300 6 1.34%
FilmTec Corporation 375 8 1.56% DNA DNA DNA
Lund Food Holdings, Inc 360 9 1.50% DNA DNA DNA
JC Penny Co. 276 10 1.15% 250 8 1.12%
Macy's (Marshall Field's or Dayton's) - 0.00% 1,200 3 5.38%
Jerry's Enterprises, Inc. - 0.00% 4,500 1 20.17%
Con Agra Foods - 0.00% 196 10 0.88%
Barr Engineering - 0.00% DNA DNA DNA
Nash Finch Co. - 0.00% 350 5 1.57%
Totals 8,383 34.89% 10,955 49.11%
Sources:
2016 data from ReferenceUSA, written and telephone survey (April 2016) done by Ehlers,
and the Minnesota Department of Employment and Economic Development.
2007 data from previous CAFR.
DNA: Historical data is not available
20072016
Employer
130
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 b 2013 b 2014 b 2015 2016
Administration
General Fund 9.25 9.25 9.25 9.25 9.25 6.85 5.85 4.85 4.85 5.00
HRA Fund - - - - - - - 1.00 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 2.00 2.00 3.00 3.00 3.50 4.65 5.15 6.15 6.15 6.00
Central Services 3.00 3.00 3.00 3.00 5.00 5.00 5.00 5.00 5.00 5.00
Community Development
General Fund 10.75 10.75 10.85 10.85 10.85 10.85 10.85 12.00 12.00 12.00
Engineering
General Fund 8.50 8.50 8.50 8.50 8.50 10.50 12.00 12.00 13.00 14.00
Finance
General Fund 5.50 5.50 5.50 5.50 5.25 5.25 5.25 6.00 6.00 5.00
Utilities Fund 1.75 1.75 2.75 2.75 2.00 2.00 1.00 1.00 1.00 1.00
Liquor Fund 0.75 0.75 0.75 0.75 0.75 0.75 0.75 - - -
Fire Protection
General Fund 40.50 40.50 40.50 40.50 39.50 39.75 42.75 42.85 43.85 45.90
Utilities Fund 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 5.00
Parks & Recreation
General Fund 6.80 6.80 6.80 6.80 6.80 6.80 8.00 7.00 7.00 7.00
Aquatic Center 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.60
Golf Course 13.00 13.00 13.00 13.00 11.00 12.00 12.00 12.00 12.00 8.05
Arena 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.85
Sports Dome - - - - - - - - - 0.15
Art Center 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park 7.00 7.00 7.00 7.00 7.00 7.00 5.80 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 73.75 73.75 74.65 73.65 71.15 71.65 70.65 72.50 70.50 72.55
Utilities Fund 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.45
Public Works
General Fund 48.40 48.40 47.40 47.40 47.20 48.20 46.40 43.35 43.35 43.45
Construction Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.10
Utilities Fund 13.25 13.25 15.25 15.25 14.45 13.95 13.75 15.20 15.20 16.85
Central Services 8.50 8.50 8.50 8.50 8.50 8.50 8.50 11.00 11.00 10.25
Other 1.00 1.00 1.00 1.00 - - - - - -
Total 278.00 278.00 281.00 280.00 274.00 278.00 281.00 285.00 285.00 287.00
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
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Government
Total City employees 890 918 885 869 892 989 1,040 1,093 1,077 1,155
Votes cast a 7,930 31,512 2,733 25,463 7,957 31,841 3,480 24,049 9,370 31,986
Public Works
Asphalt placed (tons) 8,000 7,500 9,500 7,643 8,500 9,000 9,273 8,383 8,888 9,298
Concrete (cu. yds.) 850 480 640 503 558 667 560 396 670 897
Public Safety
Crimes reported 2,010 2,025 1,985 1,890 1,590 1,628 1,594 1,571 2,015 N/A
Fire calls 1,012 913 852 910 960 858 893 926 1,251 1,276
Medical calls 3,510 3,516 3,496 3,599 3,652 3,946 3,803 3,982 3,818 4,063
Central Services
Vehicle fixes 2,460 2,967 2,539 2,431 2,331 2,546 3,493 3,277 2,923 2,721
Utilities
Daily consumption b 7,372 7,376 7,596 6,790 6,909 7,613 6,652 6,489 6,308 6,047
Aquatic Center
Attendance 114,173 110,000 64,836 86,654 77,696 139,909 91,340 92,200 128,523 108,609
Golf Course
Total rounds played 112,821 112,663 117,819 101,314 95,771 96,496 79,529 85,231 66,483 61,256
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
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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 19 19 19 18 18 18 18 18 18
Watermain miles 199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles 186 186 186 186 186 186 186 186 186 186
Sewer connections 14,851 14,851 13,933 13,933 13,933 13,979 13,979 13,979 13,979 13,979
Arena
Ice sheets 3 3 3 3 3 3 3 3 4 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