HomeMy WebLinkAbout2017 Comprehensive Annual Financial ReportComprehensive Annual Financial Report
for the Fiscal Year Ended
Dec. 31, 2017
City of Edina, Minnesota
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2017
Prepared by:
Department of Finance
Donald Uram – Finance Director
Kyle Sawyer – Assistant Finance Director
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
I. INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 4
Organization 5
Organization Chart 6
II. FINANCIAL SECTION
Independent Auditors' Report 7
Management's Discussion and Analysis 11
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements:
Balance Sheet - Governmental Funds 26
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position 27
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 29
Statement of Net Position - Proprietary Funds 30
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds 31
Statement of Cash Flows - Proprietary Funds 32
Statement of Fiduciary Net Position - Agency Funds 34
Notes to Financial Statements 35
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund 75
Budgetary Comparison Schedule - Housing and Redevelopment Authority (HRA) Fund 78
Other Post-Employment Benefits Plan Schedule of Funding Progress 79
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 80
PEPFF Schedule of City's Proportionate Share of Net Pension Liability
& Schedule of City Contributions 81
Notes to Required Supplementary Information 82
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 88
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Governmental Funds 89
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 90
Special Revenue Fund - Police Special Revenue
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 91
Special Revenue Fund - Braemar Memorial
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 92
Special Revenue Fund - Pedestrian and Cyclist Safety
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 93
Special Revenue Fund - Arts and Culture
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 94
Special Revenue Fund - Conservation and Sustainability
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 95
Capital Projects Fund - Environmental Efficiency
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 96
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 98
Governmental Fund - Construction
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 99
Combining Statement of Net Position - Nonmajor Proprietary Funds 102
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Nonmajor Proprietary Funds 103
Combining Statement of Cash Flows - Nonmajor Proprietary Funds 104
Combining Statement of Changes in Assets and Liabilities - Agency Funds 107
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates 109
Combined Schedule of Bonded Indebtedness 110
Schedule of Balance Sheet Accounts - Tax Increment Financing Districts 112
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Tax Increment Financing Districts 113
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component 116
Changes in Net Position 118
Fund Balances of Governmental Funds 120
Changes in Fund Balances of Governmental Funds 122
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property 124
Direct and Overlapping Tax Capacity Rates 125
Principal Property Tax Payers 126
Property Tax Levies and Collections 127
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Debt Capacity:
Ratios of Outstanding Debt by Type 128
Ratios of General Bonded Debt Outstanding 129
Direct and Overlapping Governmental Activities Debt 130
Legal Debt Margin Information 131
Pledged Revenue Coverage 132
Demographic and Economic Information:
Demographic and Economic Statistics 133
Principal Employers 134
Operating Information:
Full-Time Equivalent City Government Employees by Function 135
Operating Indicators by Function 136
Capital Asset Statistics by Function 137
1
June 6, 2018
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, 2017.
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, 2017. 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 51,804. 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 fund balances and compensated absences are all calculated as specified in the
policies. In addition, the City has $15,656,518 unassigned fund balance in the general fund. This
amount is $2,264,772 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, 2016. 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,
Donald Uram
Finance Director
Kyle Sawyer
Assistant Finance Director
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Edina
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2016
P AgriAA:a
Executive Director/CEO
4
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2017
Term Expires
Mayor:
James Hovland December 31, 2020
Council Members:
Mary Brindle December 31, 2020
Mike Fischer December 31, 2020
Kevin Staunton December 31, 2018
Bob Stewart December 31, 2018
City Manager:
Scott Neal Appointed
Finance Director/Treasurer:
Donald Uram Appointed
City Clerk:
Debra Mangen Appointed
5
CITY OF EDINA, MINNESOTA 6
C ERTIFIED
A CCOUNTANTS
P UBLIC
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
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, 2017, 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, 2017, 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 6, 2018 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 solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Minneapolis, Minnesota
June 6, 2018
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, 2017. 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 $251,522,963 (net position). Of
this amount, $48,856,247 (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 $11,972,008 from current year operations. Of that total,
$5,403,222 is due to licenses and permits revenues from continued residential and commercial
redevelopment of the City. Also, $5,209,735 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 $65,613,539, an increase of $11,431,662 over the prior year. The increase can
be attributed to the general obligation bond, series 2017C that was issued in 2017 in the amount
of $8,955,000 with the proceeds used to refund $9,480,000 of governmental fund bonds in
February 2018.
At the end of the current fiscal year, unassigned fund balance for the general fund was $15,656,518
or 41% of total general fund expenditures.
The City’s total bonded debt increased by $11,788,625 during the current fiscal year, from
$116,893,220 to $128,681,845. The City issued new debt during the year consisting of $8,590,000
general obligation bonds to finance various street and utility infrastructure improvement projects,
$7,425,000 general obligation bonds to finance improvements to the golf course and aquatic center,
and $10,595,000 general obligation bonds to refund old debt, paid in February 2018.
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 $251,522,963 at the close of the most recent fiscal year.
The largest portion of the City's net position ($178,487,571 or 71%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2017 2016 2017 2016 2017 2016
Assets:
Current and
other assets 95,973,528$ 81,778,994$ 38,768,461$ 26,967,470$ 134,741,989$ 108,746,464$
Capital assets 164,516,480 164,999,307 131,969,914 128,110,759 296,486,394 293,110,066
Total assets 260,490,008$ 246,778,301$ 170,738,375$ 155,078,229$ 431,228,383$ 401,856,530$
Deferred outflows of resources:
Pension plan deferments 18,890,117$ 29,550,556$ 1,381,652$ 2,612,692$ 20,271,769$ 32,163,248$
Liabilities:
Long-term liabilities
outstanding 90,975,197$ 118,112,504$ 54,320,014$ 45,828,525$ 145,295,211$ 163,941,029$
Other liabilities 22,182,641 16,358,130 10,726,721 7,862,253 32,909,362 24,220,383
Total liabilities 113,157,838$ 134,470,634$ 65,046,735$ 53,690,778$ 178,204,573$ 188,161,412$
Deferred inflows of resources:
Pension plan deferments 20,819,966$ 5,571,402$ 952,650$ 736,009$ 21,772,616$ 6,307,411$
Net position:
Net investment in
capital assets 96,149,011$ 93,247,973$ 82,338,560$ 85,158,869$ 178,487,571$ 178,406,842$
Restricted 22,840,869 20,892,680 1,338,276 804,393 24,179,145 21,697,073
Unrestricted 26,412,441 22,146,168 22,443,806 17,300,872 48,856,247 39,447,040
Total net position 145,402,321$ 136,286,821$ 106,120,642$ 103,264,134$ 251,522,963$ 239,550,955$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net position ($24,179,145) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position
($48,856,247) 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 $9,409,207 in unrestricted net position, largely due to positive operating
results in the Utility and General Funds and a large new assessment for the Golf Terrace B
neighborhood reconstruction project.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $11,972,008 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2017 2016 2017 2016 2017 2016
Revenues:
Program revenues:
Charges for services 12,057,694$ 11,738,825$ 42,427,825$ 41,714,434$ 54,485,519$ 53,453,259$
Operating grants and
contributions 2,194,336 2,751,495 179,086 445,464 2,373,422 3,196,959
Capital grants and
contributions 9,775,184 15,252,861 904,201 - 10,679,385 15,252,861
General revenues:
Property taxes 33,665,029 31,396,421 - - 33,665,029 31,396,421
Other taxes 5,852,788 5,148,144 - - 5,852,788 5,148,144
Gain on disposal
of assets - 65,044 6,554 35,946 6,554 100,990
Unrestricted investment
earnings 514,073 344,277 254,990 136,208 769,063 480,485
Total revenues 64,059,104 66,697,067 43,772,656 42,332,052 107,831,760 109,029,119
Expenses:
General government 9,164,272 9,587,567 - - 9,164,272 9,587,567
Public safety 21,815,101 20,243,209 - - 21,815,101 20,243,209
Public works 17,750,505 19,444,472 - - 17,750,505 19,444,472
Parks 4,222,431 3,822,716 - - 4,222,431 3,822,716
Interest on long-term debt 1,996,354 2,133,474 - - 1,996,354 2,133,474
Utilities - - 17,361,659 16,780,474 17,361,659 16,780,474
Liquor - - 12,007,885 12,130,254 12,007,885 12,130,254
Aquatic center - - 1,015,328 915,560 1,015,328 915,560
Golf course - - 3,469,121 3,041,169 3,469,121 3,041,169
Arena - - 2,961,787 2,842,660 2,961,787 2,842,660
Community activity
centers - - 4,095,309 3,853,091 4,095,309 3,853,091
Total expenses 54,948,663 55,231,438 40,911,089 39,563,208 95,859,752 94,794,646
Increase in net position
before transfers 9,110,441 11,465,629 2,861,567 2,768,844 11,972,008 14,234,473
Transfers 5,059 99,573 (5,059) (99,573) - -
Change in net position 9,115,500 11,565,202 2,856,508 2,669,271 11,972,008 14,234,473
Net position - January 1 136,286,821 124,721,619 103,264,134 100,594,863 239,550,955 225,316,482
Net position - December 31 145,402,321$ 136,286,821$ 106,120,642$ 103,264,134$ 251,522,963$ 239,550,955$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities increased the City's net position by $9,115,500, accounting for 76% of the total
growth in net position. Key elements of the increase are as follows.
Charges for services increased by $318,869, or 3% in 2017. This is primarily a result of
increased building and permit revenue due to continuing residential and commercial
redevelopment growth throughout the City.
Property taxes increased by $2,268,608 as the result of an increased general operating levy
that provides funding to continue existing service levels.
Investment earnings increased by $169,796, or 49% in 2017 due to increased interest rates.
Other taxes increased by $704,644 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 services19%
Operating grants and
contributions
3%
Capital grants and contributions
15%
Property taxes53%
Other taxes9%
Other1%
Revenues by Source - Governmental Activities
-
5
10
15
20
25
Generalgovernment Public safety Public works Parks Interest onlong-term
debt
Millions
Expenses and Program Revenues - Governmental
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
17
Business-type Activities
Business-type activities increased net position by $2,856,508, accounting for 24% of the City's growth
in net position. Key elements of the current year increase are as follows:
The utility fund had income before transfers of $5,209,735 for 2017. 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 transfers of $1,007,132 for 2017. The majority of the
additional equity is used to subsidize operations at other enterprise facilities.
The golf course fund had a loss before capital contributions and transfers of $2,189,040 for
2017. This is due to construction of the new championship 18-hole course that resulted in the
closure of the old 27-hole course it will be replacing.
Charges for
services
97%
Capital grants
and
contributions
2%
Unrestricted
investment
earnings
1%
Revenues by Source - Business-type Activities
-
5
10
15
20
25
Utilities Liquor Aquatic
center
Golf course Arena Community
activity
centers
Millions
Expenses and Program Revenues - Business-type
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
18
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $65,613,539, an increase of $11,431,662 in comparison with the prior year. Approximately
24% of this total amount ($15,656,518) constitutes unassigned fund balance. The remainder of the fund
balance is 1) nonspendable due to prepaid items ($13,124), 2) restricted by external creditors, grantors,
laws or regulations ($32,494,197), or 3) assigned by internal constraints ($17,449,700).
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 $15,656,518. 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 $1,177,543 during the current fiscal year. Key
factors in this increase are as follows:
Total general fund revenues were $2,307,029 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 2.5% in the
current fiscal year after a 7.6% and 7.5% increase in 2016 and 2015, respectively.
Total general fund expenditures were $750,919 under budget. Much of this savings occurred
in the public works and engineering departments as a result of less being spent on contractual
services and personal services than anticipated. The City’s central service divisions also came
in under budget in 2017 resulting in fewer expenses being charged back to the general fund.
The liquor fund transferred $50,000 of profits to the general fund, as planned in the 2017
budget.
Transfers out of the general fund totaled $1,880,405 related to the 2016 unassigned fund
balance and parkland dedication fees transferred to fund various construction projects.
The Housing and Redevelopment Authority fund balance increased by $1,647,449 in the current fiscal
year due to higher than anticipated tax increment collections in the Southdale 2 district. In addition,
there was less capital outlay spending than anticipated. Discussions were held regarding various
redevelopment projects, and increased capital outlay spending is anticipated for future years.
The debt service fund has a total fund balance of $17,000,806, 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
$5,813,338. Fund balance increased as the result of the general obligation refunding bond, series
2017C that was issued in 2017 in the amount of $8,955,000 and refunded $9,480,000 of debt service
fund bonds in February 2018.
The construction fund balance increased by $2,601,183 in 2017 due to a $1,880,405 transfer in of the
2016 general fund surplus. In addition, new debt was issued in 2017 to help finance various street
improvement projects and special assessment revenues increased as a result of collection for various
neighborhood reconstructions that were expenditures in previous years.
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 $19,555,562. The total
growth in net position from current year operations was $5,109,735. Operating revenues in the utilities
fund increased by 9.7% while expenses increased by 3.1% in 2017. The revenue increase was due to
an increase in the water, sewer and storm rates along with increased water and sewer connection fees
collected as the result of increased development. 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 $6,618,816 in utility fund capital assets
during 2017.
Unrestricted net position of the liquor fund at the end of the year amounted to $929,183. Total net
position increased by $257,132 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 $750,000 to other funds during 2017.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $275,190.
Aquatic center revenues increased by 0.7% from 2016 due to minimal fee increases. Expenses
increased by 9.9% from 2016 due to the capitalization of the new zero depth play structure resulting in
increased depreciation.
Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of
($261,273) an improvement of $594,761 from the prior year. The 27-hole regulation course closed in
October 2016 and was closed for all of 2017 for renovations, resulting in $1,555,290 in less revenue
compared to 2016. The decrease in revenue was offset by a decrease in expenses of $559,085 along
with the issuance of $6,585,000 general obligation bonds issued to fund the aforementioned
renovations.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($271,490),
an improvement of $137,980 from the prior year. Revenues increased by $192,260 due to increased
revenues related to ice time rental while expenses increased by $123,375 due to unforeseen repairs
and maintenance expenses.
General Fund Budgetary Highlights
During the year, there was an $1,880,405 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.
During the year, revenues were $2,307,029 more than budget, as the continued commercial and
residential redevelopment of the City increased our licenses and permits, which exceeded budget by
$1,132,050. In addition, charges for services exceeded budget by $711,446 due to increased
recreational program revenue from parks and recreation and increased ambulance revenue from the
fire department.
During the year, expenditures were $750,919 under budget; much of this savings occurred in the
public works and engineering departments as a result of less being spent on contractual services and
personal services than anticipated. The City’s central service divisions also came in under budget in
2017 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, 2017, amounted to $296,486,394 (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 1.2% (a 0.3% decrease for governmental activities and a 3.0% increase for
business-type activities).
Major capital asset events during the current fiscal year included the following:
The City replaced the old zero depth play structure and pool filters at the aquatic center; the
project was capitalized at a cost of $851,644.
The City continued construction on the new 18-hole championship golf course; construction in
progress as of the close of the fiscal year reached $5,495,376.
A variety of street construction, sidewalk and park projects; construction in progress as of the
close of the fiscal year reached $6,874,775.
A variety of utility infrastructure improvements, including watermain, sanitary and storm sewer,
construction in progress as of the close of the fiscal year reached $6,261,065 in the utility fund.
The City completed the Golf Terrace B and Strachauer Park A neighborhoods utility and street
reconstruction projects; total construction cost was $7,978,908.
City of Edina’s Capital Assets
(Net of Depreciation)
2017 2016 2017 2016 2017 2016
Land and land
improvements 29,193,198$ 29,081,323$ 5,092,477$ 5,544,269$ 34,285,675$ 34,625,592$
Easements 253,000 253,000 35,600 - 288,600 253,000
Buildings and structures 40,198,991 41,999,729 21,940,265 23,207,049 62,139,256 65,206,778
Machinery and equipment 6,018,012 6,210,384 6,507,805 6,738,236 12,525,817 12,948,620
Infrastructure 71,232,508 63,484,786 86,637,326 83,361,780 157,869,834 146,846,566
Parks 10,745,996 11,793,813 - - 10,745,996 11,793,813
Construction in progress 6,874,775 12,176,272 11,756,441 9,259,425 18,631,216 21,435,697
Total 164,516,480$ 164,999,307$ 131,969,914$ 128,110,759$ 296,486,394$ 293,110,066$
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 $128,681,845, an increase of $11,788,625 from 2016. This increase resulted from
$26,610,000 in new debt, offset by payment of previously scheduled principal payments.
$30,630,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount increased from 2016 due to a new debt issue that will refund the
2009A bond in February 2018.
$25,810,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount decreased from 2016 due to regularly scheduled principal payments
offset by newly issued debt of $1,995,000.
Also outstanding is $19,485,000 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 2017 due to regularly scheduled principal payments.
Management’s Discussion and Analysis (Continued)
21
There is a total of $52,740,000 in revenue bonds for improvements to the enterprise funds. This amount
increased $10,120,000 during the year due to $15,660,000 in issued debt offset by $5,540,000 in
regularly scheduled principal payments. The issued debt is being used to finance various utility
infrastructure improvement projects, improvements to the golf course and aquatic center. In addition,
$1,640,00 of the issued debt will refund the 2009C bond in February 2018.
City of Edina’s Outstanding Debt
2017 2016 2017 2016 2017 2016
General obligation bonds 30,630,000$ 27,935,000$ -$ -$ 30,630,000$ 27,935,000$
Public improvement bonds 25,810,000 25,920,000 - - 25,810,000 25,920,000
Public project revenue bonds 19,485,000 20,390,000 - - 19,485,000 20,390,000
Edina emerald energy program bonds 16,845 28,220 - - 16,845 28,220
Revenue bonds - - 52,740,000 42,620,000 52,740,000 42,620,000
Total 75,941,845$ 74,273,220$ 52,740,000$ 42,620,000$ 128,681,845$ 116,893,220$
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 $323,555,954. Only $50,115,000 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 2017 was 2.83%, 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 eighty-eight 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 2013-2017. Estimated market value of real estate increased 6.9% for
taxes payable in 2018.
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
The City collects property taxes based on tax capacity, which roughly equals estimated market value
multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are set
by state statute. Tax capacity for real estate increased 7.4% for taxes payable in 2018, and remained
positive for the fifth consecutive year.
All of these factors above were considered in preparing the City’s budget for the 2018 fiscal year. The
City’s adopted 2018 budget includes a property tax levy of $35,784,777 for all funds, an increase of
5.8% from the 2017 levy, with the increase being attributed to increased levies for the City’s capital
improvement plan, HRA operating expenses, and general operating levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual Financial
Report can also be found on the internet at www.edinamn.gov.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2017
Governmental Business-type
Activities Activities Total
Assets:
Current assets:
Cash and investments 58,239,807$ 25,048,419$ 83,288,226$
Restricted cash and investments 9,653,329 7,235,450 16,888,779
Accrued interest 147,217 68,534 215,751
Accounts receivable, net 1,028,455 4,350,240 5,378,695
Special assessments receivable 23,228,238 293,592 23,521,830
Due from other governments 1,604,410 7,672 1,612,082
Prepaid items 301,719 478,240 779,959
Inventory - 1,286,314 1,286,314
Total current assets 94,203,175 38,768,461 132,971,636
Noncurrent assets:
Investment in joint powers agreement 1,770,353 - 1,770,353
Nondepreciable capital assets 29,194,058 12,077,382 41,271,440
Depreciable capital assets (net) 135,322,422 119,892,532 255,214,954
Total noncurrent assets 166,286,833 131,969,914 298,256,747
Deferred outflows of resources:
Defined benefit pension plans 18,890,117 1,381,652 20,271,769
Total assets and deferred
outflows of resources 279,380,125 172,120,027 451,500,152
Liabilities:
Current liabilities:
Accounts payable 1,936,916 756,928 2,693,844
Salaries payable 688,695 166,630 855,325
Accrued interest payable 884,570 705,359 1,589,929
Contracts payable 408,239 1,259,104 1,667,343
Due to other governments 14,849 184,541 199,390
Deposits payable 1,526,551 - 1,526,551
Unearned revenue 52,731 119,540 172,271
Compensated absences payable 1,670,090 357,619 2,027,709
Bonds payable 15,000,000 7,177,000 22,177,000
Total current liabilities 22,182,641 10,726,721 32,909,362
Noncurrent liabilities:
Net OPEB obligation 2,112,415 220,968 2,333,383
Net pension liability 23,336,849 5,131,918 28,468,767
Compensated absences payable 2,505,136 536,428 3,041,564
Bonds payable, net 63,020,797 48,430,700 111,451,497
Total noncurrent liabilities 90,975,197 54,320,014 145,295,211
Deferred inflows of resources:
Defined benefit pension plans 20,819,966 952,650 21,772,616
Total liabilities and deferred
inflows of resources 133,977,804 65,999,385 199,977,189
Net position:
Net investment in capital assets 96,149,011 82,338,560 178,487,571
Restricted for tax increments 11,420,325 - 11,420,325
Restricted for affordable housing 2,026,871 - 2,026,871
Restricted for debt service 7,347,478 1,338,276 8,685,754
Restricted for pedestrian and cyclist improvements 23,765 - 23,765
Restricted for energy efficiency projects 78,702 - 78,702
Restricted for parkland dedication 961,133 - 961,133
Restricted for police special revenue 583,959 - 583,959
Restricted for braemar golf donations 130,933 - 130,933
Restricted for arts and culture donations 20,781 - 20,781
Restricted for conservation and sustainability initiatives 246,922 - 246,922
Unrestricted 26,412,441 22,443,806 48,856,247
Total net position 145,402,321$ 106,120,642$ 251,522,963$
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, 2017
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental activities:
General government 9,164,272$ 1,142,120$ 695,896$ -$
Public safety 21,815,101 9,627,122 1,274,911 -
Public works 17,750,505 439,035 199,848 9,731,774
Parks 4,222,431 849,417 23,681 43,410
Interest on long-term debt 1,996,354 - - -
Total government activities 54,948,663 12,057,694 2,194,336 9,775,184
Business-type activities:
Utilities 17,361,659 21,361,972 139,542 904,201
Liquor 12,007,885 12,991,764 9,111 -
Aquatic center 1,015,328 962,857 - -
Golf course 3,469,121 1,254,412 - -
Arena 2,961,787 2,508,192 50 -
Community activity centers 4,095,309 3,348,628 30,383 -
Total business-type activities 40,911,089 42,427,825 179,086 904,201
Total primary government 95,859,752$ 54,485,519$ 2,373,422$ 10,679,385$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
Governmental Business-type
Activities Activities Total
(7,326,256)$ -$ (7,326,256)$
(10,913,068) - (10,913,068)
(7,379,848) - (7,379,848)
(3,305,923) - (3,305,923)
(1,996,354) - (1,996,354)
(30,921,449) - (30,921,449)
- 5,044,056 5,044,056
- 992,990 992,990
- (52,471) (52,471)
- (2,214,709) (2,214,709)
- (453,545) (453,545)
- (716,298) (716,298)
- 2,600,023 2,600,023
(30,921,449) 2,600,023 (28,321,426)
General revenues:
Property taxes 33,665,029 - 33,665,029
Tax increment collections 3,422,898 - 3,422,898
Franchise taxes 2,408,884 - 2,408,884
Lodging taxes 21,006 - 21,006
Unrestricted investment earnings 514,073 254,990 769,063
Gain on disposal of capital assets - 6,554 6,554
Transfers - capital assets (68,083) 68,083 -
Transfers - internal activities 73,142 (73,142) -
Total general revenues and transfers 40,036,949 256,485 40,293,434
Change in net position 9,115,500 2,856,508 11,972,008
Net position - beginning 136,286,821 103,264,134 239,550,955
Net position - ending 145,402,321$ 106,120,642$ 251,522,963$
Net (Expense) Revenue and
Changes in Net Position
25
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2017
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Assets
Cash and Investments 20,557,003$ 13,513,449$ 7,299,243$ 15,314,753$ 1,075,396$ 57,759,844$
Restricted cash and
investments - - 9,651,935 1,394 - 9,653,329
Accrued interest 51,303 42,933 - 50,651 1,847 146,734
Accounts receivable 605,816 (759) - 53,537 353,333 1,011,927
Special assessments
receivable - - 2,476,028 20,752,210 - 23,228,238
Due from other funds - - - 68,351 - 68,351
Due from other governments 732,153 39,480 78,327 745,012 9,438 1,604,410
Prepaid items 13,124 - - - - 13,124
Total assets 21,959,399$ 13,595,103$ 19,505,533$ 36,985,908$ 1,440,014$ 93,485,957$
Liabilities
Accounts payable 1,168,852$ 145,471$ 1,585$ 291,401$ 93,640$ 1,700,949$
Salaries payable 679,444 3,195 - 1,640 4,416 688,695
Contracts payable - - - 219,794 188,445 408,239
Due to other funds - - - - 68,351 68,351
Due to other governments 14,849 - - - - 14,849
Deposits payable 1,526,551 - - - - 1,526,551
Unearned revenue 53,490 (759) - - - 52,731
Total liabilities 3,443,186 147,907 1,585 512,835 354,852 4,460,365
Deferred inflows of resources
Unavailable revenue - taxes 146,359 - 27,114 10,242 100 183,815
Unavailable revenue -
special assessments - - 2,476,028 20,752,210 - 23,228,238
Total deferred inflows of
resources 146,359 - 2,503,142 20,762,452 100 23,412,053
Fund balance:
Nonspendable 13,124 - - - - 13,124
Restricted 961,133 13,447,196 17,000,806 - 1,085,062 32,494,197
Assigned 1,739,079 - - 15,710,621 - 17,449,700
Unassigned 15,656,518 - - - - 15,656,518
Total fund balance 18,369,854 13,447,196 17,000,806 15,710,621 1,085,062 65,613,539
Total liabilities, deferred
inflows of resources,
and fund balances 21,959,399$ 13,595,103$ 19,505,533$ 36,985,908$ 1,440,014$ 93,485,957$
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, 2017
Total fund balances - governmental funds 65,613,539$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Cost of capital assets 292,786,073
Accumulated depreciation (128,269,593)
Bonds payable (75,941,845)
Premium on bonds (2,492,924)
Discount on bonds 413,972
Compensated absences payable (4,175,226)
Net OPEB obligation (2,112,415)
Net pension liability (23,336,849)
(884,570)
1,770,353
Deferred outflows - pension plans 18,890,117
Deferred inflows - pension plans (20,819,966)
Deferred inflows - property taxes 183,815
Deferred inflows - special assessments 23,228,238
549,602
Total net position - governmental activities 145,402,321$
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, 2017
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Revenues:
General property taxes 26,783,198$ 95,414$ 4,560,803$ 2,237,135$ 20,000$ 33,696,550$
Tax increment collections - 3,422,898 - - - 3,422,898
Franchise taxes 889,872 - - 100,277 1,418,735 2,408,884
Lodging tax 21,006 - - - - 21,006
Special assessments - - 207,504 5,123,262 - 5,330,766
License and permits 5,324,710 - - 78,512 - 5,403,222
Intergovernmental 1,383,606 3,046 - 2,041,288 259,322 3,687,262
Charges for services 4,729,419 42,400 - 145,354 - 4,917,173
Fines and forfeitures 1,064,271 - - - 71,715 1,135,986
Investment income 171,094 143,481 19,925 174,069 3,879 512,448
Rental of property 459,099 - - - - 459,099
Parkland dedication 33,460 - - - - 33,460
Other revenues 97,596 - - 537,055 126,630 761,281
Total revenues 40,957,331 3,707,239 4,788,232 10,436,952 1,900,281 61,790,035
Expenditures:
Current:
General government 6,338,153 474,923 - - 252,653 7,065,729
Public safety 19,053,058 - - 30,719 149,609 19,233,386
Public works 10,877,264 - - 416,313 231,319 11,524,896
Parks 1,680,908 - - 2,910 11,579 1,695,397
Capital outlay:
General government - 1,584,867 - 1,051,159 - 2,636,026
Public safety - - - 650,679 7,094 657,773
Public works - - - 6,436,448 919,095 7,355,543
Parks - - - 330,987 72,883 403,870
Debt service:
Bond principal - - 5,496,375 - - 5,496,375
Interest and fiscal charges - - 2,359,551 - - 2,359,551
Total expenditures 37,949,383 2,059,790 7,855,926 8,919,215 1,644,232 58,428,546
Revenues over
(under) expenditures 3,007,948 1,647,449 (3,067,694) 1,517,737 256,049 3,361,489
Other financing sources (uses):
Transfers in 50,000 - 3,000,000 2,080,405 - 5,130,405
Transfers out (1,880,405) - - (3,112,958) (63,900) (5,057,263)
Sale of capital assets - - - 84,388 - 84,388
Bonds issued - - 107,886 1,887,114 - 1,995,000
Refunding bonds issued - - 8,955,000 - - 8,955,000
Refunded bonds paid from escrow - - (3,785,000) - - (3,785,000)
Premium on bonds issued - - 642,105 156,686 - 798,791
Discount on bonds issued - - (38,959) (12,189) - (51,148)
Total other financing
sources (uses) (1,830,405) - 8,881,032 1,083,446 (63,900) 8,070,173
Net increase (decrease)
in fund balance 1,177,543 1,647,449 5,813,338 2,601,183 192,149 11,431,662
Fund balance - January 1 17,192,311 11,799,747 11,187,468 13,109,438 892,913 54,181,877
Fund balance - December 31 18,369,854$ 13,447,196$ 17,000,806$ 15,710,621$ 1,085,062$ 65,613,539$
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, 2017
Total net change in fund balances - governmental funds 11,431,662$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays 8,938,029
Contributed assets (68,083)
Depreciation expense (9,184,823)
(167,950)
2,267,444
(10,950,000)
9,281,375
110,426
(494,872)
Net pension liability 23,824,193
Net OPEB obiligation (166,613)
Compensated absences payable (144,626)
Deferred outflows - pension plans (10,660,439)
Deferred inflows - pension plans (15,248,564)
348,341
Change in net position - governmental activities 9,115,500$
The accompanying notes are an integral part of these financial statements.
Capital assets are recorded in net position and the cost is allocated over their estimated useful lives as
depreciation expense. However, fund balances are reduced for the full cost of capital outlays at the
time of purchase.
Internal service funds are used by management to charge the costs of certain activities to individual
funds. The change in net position of the internal service funds is included in the governmental activities
in the Statement of Activities.
A gain or loss on the disposal of capital assets, including the difference between the carrying value and
any related sale proceeds, is included in the change in net position. However, only the sale proceeds and
insurance recoveries are included in the change fund balances.
Revenues in the statement of activities that do not provide current financial resources (property tax
and special assessment receivables) are not reported as revenues in the funds.
The amount of debt issued is reported in the governmental funds as a source of financing. Debt
obligations are not revenues in the Statement of Activities, but rather constitute long-term liabilities.
Certain expenses are included in the change in net position, but do not require the use of current
funds, and are not included in the change in fund balances.
The recognition of certain revenues and expenditures differ between the full accural governmental
activities financial statements and the modified accrual governmental fund financial statements.
Repayment of long-term debt does not affect the change in net position. However, it reduces fund
balances.
Debt issuance premiums and discounts are included in the change in net position as they are
amortized over the life of the debt. However, they are included in the change in fund balances upon
issuance as other financing sources and uses.
Interest on long-term debt is included in the change in net position as it accrues, regardless of when
payment is due. However, they are included in the change in fund balances when due.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2017
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Assets:
Current assets:
Cash and investments 16,990,124$ 1,593,310$ 1,627,938$ 918,724$ 83,905$ 3,834,418$ 25,048,419$ 479,963$
Restricted cash and investments 2,961,937 - 83,537 2,549,446 1,640,530 - 7,235,450 -
Interest receivable 42,241 4,238 4,639 5,835 - 11,581 68,534 483
Accounts receivable, net 3,940,123 457 150 2,046 387,082 20,382 4,350,240 16,528
Special assessments receivable 293,592 - - - - - 293,592 -
Due from other governments 7,672 - - - - - 7,672 -
Prepaid expenses 477,406 - - 834 - - 478,240 288,595
Inventory 13,956 1,210,533 - 53,107 - 8,718 1,286,314 -
Total current assets 24,727,051 2,808,538 1,716,264 3,529,992 2,111,517 3,875,099 38,768,461 785,569
Noncurrent assets:
Net capital assets 97,776,714 1,576,386 2,311,578 11,728,752 9,252,874 9,323,610 131,969,914 -
Deferred outlflows of resources:
Defined benefit pension plans 333,502 333,502 - 190,573 142,930 381,145 1,381,652 -
Total assets and deferred
outflows of resources 122,837,267 4,718,426 4,027,842 15,449,317 11,507,321 13,579,854 172,120,027 785,569
Liabilities:
Current liabilities:
Accounts payable 327,261 208,934 2,160 44,585 84,006 89,982 756,928 235,967
Salaries payable 42,498 36,458 - 19,857 21,778 46,039 166,630 -
Accrued interest payable 477,709 - 16,960 157,956 52,734 - 705,359 -
Contracts payable 323,740 - - 854,707 - 80,657 1,259,104 -
Due to other governments 5,827 148,062 141 3,863 8,374 18,274 184,541 -
Unearned revenue - 13,394 - 96,584 317 9,245 119,540 -
Compensated absences payable 65,378 118,116 - 87,599 25,672 60,854 357,619 -
Bonds payable - current 4,980,000 - 80,000 185,000 1,932,000 - 7,177,000 -
Total current liabilities 6,222,413 524,964 99,261 1,450,151 2,124,881 305,051 10,726,721 235,967
Noncurrent liabilities:
Net OPEB obligation 57,625 42,030 - 51,300 24,580 45,433 220,968 -
Net pension liability 1,238,739 1,238,739 - 707,851 530,888 1,415,701 5,131,918 -
Compensated absences payable 98,067 177,174 - 131,397 38,508 91,282 536,428 -
Bonds payable, net of
unamortized discounts and premiums 33,681,389 - 854,991 10,001,211 3,893,109 - 48,430,700 -
Total noncurrent liabilities 35,075,820 1,457,943 854,991 10,891,759 4,487,085 1,552,416 54,320,014 -
Deferred inflows of resources:
Defined benefit pension plans 229,950 229,950 - 131,400 98,550 262,800 952,650 -
Total liabilities and deferred
inflows of resources 41,528,183 2,212,857 954,252 12,473,310 6,710,516 2,120,267 65,999,385 235,967
Net position:
Net investment in capital assets 61,753,522 1,576,386 1,460,124 3,237,280 5,068,295 9,242,953 82,338,560 -
Restricted for debt service - - 1,338,276 - - - 1,338,276 -
Unrestricted 19,555,562 929,183 275,190 (261,273) (271,490) 2,216,634 22,443,806 549,602
Total net position 81,309,084$ 2,505,569$ 3,073,590$ 2,976,007$ 4,796,805$ 11,459,587$ 106,120,642$ 549,602$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
30
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2017
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Operating revenues:
Sales - liquor -$ 12,766,514$ -$ 7,305$ -$ -$ 12,773,819$ -$
Sales - retail - 225,250 6,050 91,739 38,958 42,504 404,501 -
Sales - utilities 19,153,949 - - - - - 19,153,949 -
Sales - concessions - - 120,138 3,109 316,432 174,277 613,956 -
Memberships - - 407,297 22,863 - 162,448 592,608 -
Admissions - - 370,365 346,461 63,070 738,191 1,518,087 -
Building rental - - 58,038 70,222 1,924,652 795,496 2,848,408 -
Rental of equipment - - - 44,153 5,879 132,242 182,274 -
Greens fees - - - 304,185 - 247,326 551,511 -
Other fees 2,206,313 - 969 364,375 158,028 1,056,144 3,785,829 942,886
Total operating revenues 21,360,262 12,991,764 962,857 1,254,412 2,507,019 3,348,628 42,424,942 942,886
Operating expenses:
Cost of sales and services - 9,442,254 47,330 82,968 109,842 80,002 9,762,396 -
Personal services 2,194,745 1,574,642 384,513 860,175 995,354 1,970,438 7,979,867 20,099
Contractual services 8,011,288 522,687 136,359 523,042 898,906 731,795 10,824,077 576,071
Commodities 901,481 74,304 72,368 140,868 100,109 348,990 1,638,120 -
Central Services 682,390 263,570 37,391 138,156 72,879 210,345 1,404,731 -
Depreciation 4,928,384 101,211 325,623 664,003 657,763 752,941 7,429,925 -
Total operating expenses 16,718,288 11,978,668 1,003,584 2,409,212 2,834,853 4,094,511 39,039,116 596,170
Operating income (loss)4,641,974 1,013,096 (40,727) (1,154,800) (327,834) (745,883) 3,385,826 346,716
Nonoperating revenues (expenses):
Intergovernmental 139,542 - - - - - 139,542 -
Investment income (charges) 159,125 14,142 16,892 25,669 530 38,632 254,990 1,625
Donations - - - - 50 28,638 28,688 -
Interest and fiscal charges (982,841) - (16,973) (208,374) (126,918) - (1,335,106) -
Amortization of bond premiums
(discounts) 339,470 - 5,229 22,304 (16) - 366,987 -
Gain (loss) on sale of capital assets 6,554 (29,217) - (873,839) - (798) (897,300) -
Miscellaneous 1,710 9,111 - - 1,173 1,745 13,739 -
Total nonoperating
revenues (expenses)(336,440) (5,964) 5,148 (1,034,240) (125,181) 68,217 (1,428,460) 1,625
Income (loss) before contributions
and transfers 4,305,534 1,007,132 (35,579) (2,189,040) (453,015) (677,666) 1,957,366 348,341
Contributions and transfers:
Intergovernmental 904,201 - - - - - 904,201 -
Capital contributions from other funds - - - 19,739 48,344 - 68,083 -
Transfers in - - - 200,000 283,887 292,971 776,858 -
Transfers out (100,000) (750,000) - - - - (850,000) -
Total contributions and transfers 804,201 (750,000) - 219,739 332,231 292,971 899,142 -
Change in net position 5,109,735 257,132 (35,579) (1,969,301) (120,784) (384,695) 2,856,508 348,341
Net position - January 1 76,199,349 2,248,437 3,109,169 4,945,308 4,917,589 11,844,282 103,264,134 201,261
Net position - December 31 81,309,084$2,505,569$ 3,073,590$ 2,976,007$ 4,796,805$ 11,459,587$106,120,642$ 549,602$
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, 2017
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Cash flows from operating activities:
Receipts from customers and users 21,427,135$ 12,992,793$ 954,307$ 1,273,827$ 2,432,075$ 3,341,158$ 42,421,295$ 944,828$
Payment to suppliers (9,955,596) (10,305,397) (205,754) (860,569) (1,158,094) (1,349,331) (23,834,741) (419,311)
Payment to employees (2,122,941) (1,519,163) (384,513) (807,529) (951,627) (1,850,144) (7,635,917) (20,099)
Donations received - - - - 50 28,638 28,688 -
Net cash provided by
(used in) operating activities 9,348,598 1,168,233 364,040 (394,271) 322,404 170,321 10,979,325 505,418
Cash flows from noncapital financing activities:
State grant 139,542 - - - - - 139,542 -
Transfer from other funds - - - 200,000 283,887 292,971 776,858 -
Transfer to other funds (100,000) (750,000) - - - - (850,000) -
Proceeds from interfund borrowing - - - - - 44,719 44,719 -
Payment of interfund borrowing - - - - (44,719) - (44,719) (26,597)
Miscellaneous received 1,710 9,111 - - 1,173 1,745 13,739 -
Net cash provided by (used in)
noncapital financing activities 41,252 (740,889) - 200,000 240,341 339,435 80,139 (26,597)
Cash flows from capital and related financing activities:
State grant 904,201 - - - - - 904,201 0
Proceeds from capital debt 7,350,420 - 940,221 7,216,360 1,640,000 - 17,147,001 -
Acquisition of capital assets (6,618,816) (88,638) (846,020) (3,419,151) (120,141) (31,176) (11,123,942) -
Proceeds from disposals
of capital assets 6,554 - - 5,500 - - 12,054 -
Principal paid on bonds (5,040,000) - (85,000) (185,000) (230,000) - (5,540,000) -
Interest and fiscal charges paid on bonds (930,123) - (1,275) (87,984) (128,699) - (1,148,081) -
Net cash provided by (used in)
capital and related
financing activities (4,327,764) (88,638) 7,926 3,529,725 1,161,160 (31,176) 251,233 -
Cash flows from investing activities:
Interest received 139,931 13,138 16,356 22,493 530 36,237 228,685 1,142
Net increase (decrease)
in cash and investments 5,202,017 351,844 388,322 3,357,947 1,724,435 514,817 11,539,382 479,963
Cash and investments -
January 1 14,750,044 1,241,466 1,323,153 110,223 - 3,319,601 20,744,487 -
Cash and investments -
December 31 19,952,061$ 1,593,310$ 1,711,475$ 3,468,170$ 1,724,435$ 3,834,418$ 32,283,869$ 479,963$
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, 2017
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Business-type Activities - Enterprise Funds
Reconciliation of operating income to net cash
provided by (used in) operating activities:
Operating income (loss) 4,641,974$ 1,013,096$ (40,727)$ (1,154,800)$ (327,834)$ (745,883)$ 3,385,826$ 346,716$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 4,928,384 101,211 325,623 664,003 657,763 752,941 7,429,925 -
Donations - - - - 50 28,638 28,688 -
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables (283,965) (48) (150) 9,326 (74,944) (7,470) (357,251) 1,942
Decrease (increase) in
special assessments 350,612 - - - - - 350,612 -
Decrease (increase) in
due from other governments 226 - - - - - 226 -
Decrease (increase) in inventory (1,977) 120,298 - 10,485 - (1,732) 127,074 -
Decrease (increase) in
prepaid expenses (441,406) - 86,275 (834) - - (355,965) 785
Decrease (increase) in deferred
outflows of resources 297,148 297,148 - 169,798 127,348 339,598 1,231,040 -
Increase (decrease) in
accounts payable 82,721 (124,669) 1,353 14,823 23,258 20,802 18,288 155,975
Increase (decrease) in
salaries payable 2,973 (300) - (2,320) 159 8,587 9,099 -
Increase (decrease) in
due to other governments 225 1,789 66 (9) 384 2,731 5,186 -
Increase (decrease) in
deposits payable - - (8,400) (5,000) - - (13,400) -
Increase (decrease) in
unearned revenue - 1,077 - 15,089 - - 16,166 -
Increase (decrease) in
net OPEB obligation 2,483 3,264 - 2,058 1,219 3,458 12,482 -
Increase (decrease) in
net pension liability (270,839) (270,839) - (154,765) (116,074) (309,531) (1,122,048) -
Increase (decrease) in
compensated absences (12,254) (26,087) - 7,994 8,664 18,419 (3,264) -
Increase (decrease) in deferred
inflows of resources 52,293 52,293 - 29,881 22,411 59,763 216,641 -
Total adjustments 4,706,624 155,137 404,767 760,529 650,238 916,204 7,593,499 158,702
Net cash provided by
(used in) operating activities 9,348,598$ 1,168,233$ 364,040$ (394,271)$ 322,404$ 170,321$ 10,979,325$ 505,418$
Noncash investing activities:
Increase (decrease) in
fair value of investments (14,765)$ (1,062)$ (618)$ 1,498$ -$ (2,564)$ (17,511)$ (477)$
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable (177,981)$ -$ -$ (806,806)$ 34,254$ (55,877)$ (1,006,410)$ -$
Capital assets contributed from
other funds -$ -$ -$ 19,739$ 48,344$ -$ 68,083$ -$
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, 2017
Agency Funds
Assets
Cash and investments 662,903$
Due from other governmental units 50,193
Total assets 713,096$
Liabilities
Accounts payable 240,181$
Salaries payable 8,731
Due to other governmental units 464,184
Total liabilities 713,096$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 unit discussed below is included in the City's reporting
entity because of the significance of its operational or financial relationships with the City.
COMPONENT UNIT
In conformity with 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, 2017
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, 2017
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, it provides
services primarily to other departments within the City.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
38
Agency funds - the police seizure, Public Safety Training Facility, and Minnesota
Task Force 1 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.
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, 2017
39
D. CASH AND INVESTMENTS
Cash and Investments
The cash balances of the City and its component unit are pooled and invested for the
purpose of increasing earnings through investment activities. The pool’s investments are
reported at fair value at year end, except for investments in external investment pools,
which are stated at amortized cost. The City has the ability and intent to hold its
investments to maturity. The individual funds’ portions of the pool’s fair value are
presented as “Cash and investments.” Earnings from such investments are allocated to
the respective funds on the basis of applicable cash balance participation by each fund.
The City provides temporary advances to funds that have insufficient cash and
investment balances by means of an advance from another fund shown as interfund
receivables in the advancing fund, and an interfund payable in the fund with the deficit,
until adequate resources are received. These interfund balances are eliminated on the
government-wide financial statements.
The City categorizes its fair value measurements within the fair value hierarchy
established by 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
evaluations based on various market and industry inputs.
See Note 2 for the City’s recurring fair value measurements as of the current year-end.
Restricted Cash and Investments
Restricted cash and investments represent bond proceeds held for specific purposes.
Earnings on these investments are allocated directly to these funds.
Cash Equivalents
For the purposes of the Statement of Cash Flows, the City considers all highly liquid debt
instruments with an original maturity from the time of purchase by the City of three
months or less to be cash equivalents. The proprietary funds’ portion in the government-
wide cash and investment management pool is considered to be cash equivalent.
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,
2017 are planned to be eliminated in 2018. 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, 2017
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, 2017
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,
2017:
Enterprise
Funds
Debt
Service Construction Utilities
Special assessments receivable
Delinquent 35,453$ -$ 32,839$
Deferred 2,440,575 20,752,210 260,753
Total 2,476,028$ 20,752,210$ 293,592$
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 expenditures or expenses when consumed.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
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 in the government-wide and
proprietary fund financial statements for that portion of accumulating sick leave benefits
that is vested as severance pay. According to City policy, vested sick leave benefits are
liquidated into a health care savings plan upon separation.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017
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 and are eliminated to the extent
possible on the government-wide statements.
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, 2017
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 and proprietary fund financial statements, net position represents
the difference between assets, deferred outflows of resources, liabilities, and deferred
inflows of resources. Net position is displayed in three components:
Net investment in capital assets - Consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balance of any long-term debt used to build
or acquire the capital assets.
Restricted net position – Consists of net position restricted when there are
limitations imposed on their use through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
Unrestricted net position – All other net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
When both restricted and unrestricted resources are available for use, it is the City’s policy
to first use restricted resources, and then use unrestricted resources as they are needed.
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, 2017
46
Note 2 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits (163,338)$
Cash on hand 18,890
Investments 100,984,356
100,839,908$
Cash and investments are presented in the financial statements as follows:
Cash and investments - Statement of Net Position 83,288,226$
Restricted cash and investments - Statement of Net Position 16,888,779
Cash and investments - Statement of Fiduciary Net Position 662,903
100,839,908$
The negative deposits are a result of outstanding checks as of December 31, 2017.
When checks are cashed, funds are automatically transferred from the City’s money
market investment account into the City’s operating bank account.
The City had restricted investments of $16,888,779 as of December 31, 2017 that
represent unspent bond proceeds to be used for construction projects and debt
payments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 $(163,338) while the
balance on the bank records was $382,117. At December 31, 2017, all deposits
were fully covered by federal depository insurance, surety bonds, or by collateral
held by the City’s agent in the City’s name.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
48
C. INVESTMENTS
The City has the following investments at year end:
Fair Value
Measurements
Rating Agency Using < 1 1 to 5 6 to 10 > 10 Total
U.S. Treasuries AA+ S&P Level 1 264,751$ -$ 457,952$ 837,607$ 1,560,310$
SBA Notes AA+ S&P Level 1 - 96,718 108,562 - 205,280
U.S. Agencies AA+ S&P Level 2 1,375,456 9,042,722 1,093,357 2,378,929 13,890,464
Commerical Paper A1+ S&P Level 2 4,243,189 - - - 4,243,189
Municipals AAA S&P Level 2 - 1,071,445 81,685 - 1,153,130
Municipals AA+ S&P Level 2 1,126,585 1,024,187 805,000 180,000 3,135,772
Municipals AA S&P Level 2 783,087 1,313,397 40,623 - 2,137,107
Municipals A+ S&P Level 2 - - 32,639 - 32,639
Municipals Aaa Mdy's Level 2 - 1,000,170 - - 1,000,170
Municipals Aa1 Mdy's Level 2 1,693,745 249,630 29,821 - 1,973,196
Municipals Aa2 Mdy's Level 2 248,478 1,255,711 183,344 - 1,687,533
Municipals Aa3 Mdy's Level 2 - 989,465 - - 989,465
Negotiable CD's N/R N/A Level 2 10,528,755 10,561,120 235,445 - 21,325,320
20,264,046$ 26,604,565$ 3,068,428$ 3,396,536$ 53,333,575
Money Market*AAAm S&P Level 2 31,939,141
4M Fund* N/R N/A N/A 15,711,640
Total investments 100,984,356$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments do not have maturities
Credit Risk
Investment
Maturity Duration in Years
Interest 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. The fair value of its
position in the pool is the same as the value of the pool shares. The fund does not have
any limitations or restrictions on participant withdrawals.
Investments are subject to various risks, the following of which are considered the most
significant:
Custodial credit risk – For investments, this is the risk that in the event of a
failure of the counterparty to an investment transaction (typically a broker-dealer)
the City would not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The City’s investment
policy specifically addresses custodial credit risk, requiring the City to limit its
exposure by purchasing insured or registered investments, or by the control of
who holds the securities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City did not hold any
investments with a concentration greater than 5 percent.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
50
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017 is as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets not being depreciated:
Land 22,066,283$ -$ -$ -$ 22,066,283$
Easements 253,000 - - - 253,000
Construction in progress 12,176,272 7,604,177 (12,905,674) - 6,874,775
Total capital assets not being depreciated 34,495,555 7,604,177 (12,905,674) - 29,194,058
Capital assets being depreciated:
Land improvements 24,494,391 886,409 (117,978) - 25,262,822
Buildings and structures 64,027,086 48,344 - (48,344) 64,027,086
Furniture and office equipment 4,198,472 - - - 4,198,472
Vehicles and equipment 16,037,676 1,505,874 (1,143,082) (19,739) 16,380,729
Infrastructure 120,605,784 11,798,899 (957,633) - 131,447,050
Parks 22,309,866 - (34,010) - 22,275,856
Total capital assets being depreciated 251,673,275 14,239,526 (2,252,703) (68,083) 263,592,015
Less accumulated depreciation for:
Land improvements (17,479,351) (745,066) 88,510 - (18,135,907)
Buildings and structures (22,027,357) (1,800,738) - - (23,828,095)
Furniture and office equipment (3,326,142) (274,398) - - (3,600,540)
Vehicles and equipment (10,699,622) (1,324,283) 1,063,256 - (10,960,649)
Infrastructure (57,120,998) (3,992,521) 898,977 - (60,214,542)
Parks (10,516,053) (1,047,817) 34,010 - (11,529,860)
Total accumulated depreciation (121,169,523) (9,184,823) 2,084,753 - (128,269,593)
Total capital assets being depreciated, net 130,503,752 5,054,703 (167,950) (68,083) 135,322,422
Governmental activities capital assets, net 164,999,307$ 12,658,880$ (13,073,624)$ (68,083)$ 164,516,480$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
51
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets not being depreciated:
Land 285,341$ -$ -$ -$ 285,341$
Easements - 35,600 - - 35,600
Construction in progress 9,259,425 11,712,225 (9,215,209) - 11,756,441
Total capital assets not being depreciated 9,544,766 11,747,825 (9,215,209) - 12,077,382
Capital assets being depreciated:
Land improvements & golf course 11,374,875 880,806 (3,720,692) - 8,534,989
Buildings and structures 38,496,071 387,106 (98,623) 48,344 38,832,898
Furniture and office equipment 153,303 - (12,855) - 140,448
Vehicles and equipment 12,473,080 592,073 (256,263) 19,739 12,828,629
Utility infrastructure 131,610,194 7,737,750 (213,552) - 139,134,392
Lease property capital lease 430,614 - - - 430,614
Total capital assets being depreciated 194,538,137 9,597,735 (4,301,985) 68,083 199,901,970
Less accumulated depreciation for:
Land improvements & golf course (6,115,947) (457,258) 2,845,352 - (3,727,853)
Buildings and structures (15,289,022) (1,697,437) 93,826 - (16,892,633)
Furniture and office equipment (149,441) (1,547) 12,855 - (138,133)
Vehicles and equipment (5,738,706) (811,479) 227,046 - (6,323,139)
Utility infrastructure (48,248,414) (4,462,204) 213,552 - (52,497,066)
Lease property capital lease (430,614) - - - (430,614)
Total accumulated depreciation (75,972,144) (7,429,925) 3,392,631 - (80,009,438)
Total capital assets being depreciated, net 118,565,993 2,167,810 (909,354) 68,083 119,892,532
Business-type activities capital assets, net 128,110,759$ 13,915,635$ (10,124,563)$ 68,083$ 131,969,914$
The conservation and sustainability (CAS) fund contributed energy efficient building
improvements with a cost of $48,344 to the arena and the braemar memorial fund contributed
equipment with a cost of $19,739 to the golf course fund.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
52
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 499,566$
Public safety 1,047,540
Public works 5,293,069
Parks 2,344,648
Total depreciation expense - governmental activities 9,184,823$
Business-type activities:
Utilities 4,928,384$
Liquor 101,211
Aquatic Center 325,623
Golf Course 664,003
Arena 657,763
Art Center 22,032
Edinborough Park 183,781
Centennial Lakes 35,551
Sports Dome 511,577
Total depreciation expense - business-type activities 7,429,925$
CONSTRUCTION COMMITMENTS
At December 31, 2017, 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
17-3 Eng Countryside G Neighborhood 1,227,331$ 48,459$
17-1 Eng Parklawn Avenue Neighborhood 2,669,959 210,416
17-9 Eng Presidents Area Sewer Rehab 235,289 43,023
16-14 Eng Wooddale Bridge Storm Sewer 58,410 4,014
NA Well #9 415,931 19,430
NA Golf Course 5,303,713 699,609
1,024,951$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
53
Note 4 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2017: 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, 2017, 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 12/31/2017
General Obligation Bonds:
General Obligation - Capital Improvement Plan, 2009A 3.00-4.40% 4/29/2009 2/1/2018 14,000,000 10,105,000
General Obligation - Capital Improvement Plan, 2010A 2.00-4.00% 11/18/2010 2/1/2021 8,285,000 3,370,000
General Obligation - Capital Improvement Plan, 2013A - Refunding 3.00-3.50% 10/10/2013 2/1/2030 5,710,000 4,565,000
General Obligation - 2016A - Refunding 2.00-3.00% 7/6/2016 2/1/2028 3,635,000 3,635,000
General Obligation - 2017C - Refunding 2.05-4.00% 12/14/2017 2/1/2029 8,955,000 8,955,000
Total General Obligation Bonds 40,585,000 30,630,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2010B 2.00-3.00% 11/18/2010 2/1/2022 2,305,000 1,210,000
Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 2,080,000
Permanent Improvement Revolving, 2012A 3.00-4.00% 11/15/2012 2/1/2029 2,675,000 2,240,000
Permanent Improvement Revolving, 2012A - Refunding 3.00-4.00% 11/15/2012 2/1/2019 1,990,000 585,000
Permanent Improvement Revolving, 2013A 3.00-3.50% 10/10/2013 2/1/2030 2,555,000 2,275,000
Permanent Improvement Revolving, 2014B - Refunding 2.00-3.00% 12/11/2014 2/1/2020 4,075,000 2,540,000
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 2,400,000
Permanent Improvement Revolving, 2016A 2.00-3.00% 7/6/2016 2/1/2033 3,940,000 3,940,000
Permanent Improvement Revolving, 2017A 3.00-4.00% 6/29/2017 2/1/2034 1,995,000 1,995,000
Total PIR Bonds 31,895,000 25,810,000
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 14,910,000
Public Project Revenue, Series 2015A - Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 2,930,000
Total Public Project Revenue Bonds 22,240,000 19,485,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A 7.00% 2/25/2012 1/1/2023 33,690 16,845
Total bonded indebtedness - governmental activities 94,753,690$ 75,941,845$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
54
BUSINESS-TYPE ACTIVITIES
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2017
Revenue Bonds:
Recreational Facility Bonds, Series 2009C 2.00-4.00% 12/10/2009 2/1/2018 2,440,000 1,750,000
Recreational Facility Bonds, Series 2012B .45-1.60% 11/15/2012 2/1/2020 815,000 330,000
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 1,125,000 945,000
Recreational Facility Bonds, Series 2015B 2.00-3.25% 7/9/2015 2/1/2031 2,140,000 2,020,000
Recreational Facility Bonds, Series 2017B 3.00-4.00% 6/29/2017 2/1/2033 7,425,000 7,425,000
Recreational Facility Bonds, Series 2017D - Refunding 2.00% 12/20/2017 2/1/2030 1,640,000 1,640,000
Utility Revenue Bonds, Series 2011A 2.00-3.00% 10/27/2011 2/1/2022 11,230,000 5,945,000
Utility Revenue Bonds, Series 2012A 3.00-4.00% 11/15/2012 2/1/2023 6,100,000 3,960,000
Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 4,060,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00% 12/11/2014 2/1/2019 5,710,000 2,960,000
Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 4,235,000
Utility Revenue Bonds, Series 2016A 2.00-3.00% 7/6/2016 2/1/2027 8,775,000 8,775,000
Utility Revenue Bonds, Series 2017A 3.00-4.00% 6/29/2017 2/1/2028 6,595,000 6,595,000
Total bonded indebtedness - business-type activities 67,010,000$ 52,740,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2018 11,475,000$ 733,895$ 2,480,000$ 746,023$ 1,045,000$ 607,198$
2019 2,055,000 588,775 2,630,000 668,163 1,080,000 574,566
2020 2,180,000 510,175 2,570,000 599,675 1,115,000 540,690
2021 2,250,000 427,825 1,750,000 543,600 1,145,000 505,649
2022 1,405,000 361,125 1,795,000 489,300 1,185,000 472,949
2023-2027 7,795,000 1,048,183 6,895,000 1,731,088 6,105,000 1,806,443
2028-2032 3,470,000 108,633 6,415,000 700,670 4,710,000 951,508
2033-2036 - - 1,275,000 63,206 3,100,000 170,475
Total 30,630,000$ 3,778,611$ 25,810,000$ 5,541,725$ 19,485,000$ 5,629,478$
Principal Interest Principal Interest
2018 -$ 590$ 7,177,000$ 1,543,295$
2019 3,369 1,061 6,534,000 1,310,645
2020 3,369 825 5,171,000 1,139,740
2021 3,369 590 5,324,000 980,410
2022 3,369 354 5,476,000 812,770
2023-2027 3,369 118 16,947,000 2,121,351
2028-2032 - - 5,376,000 447,251
2033 - - 735,000 11,025
Total 16,845$ 3,538$ 52,740,000$ 8,366,487$
Governmental Activities
General Public Improvement
Obligation Bonds Revolving Bonds
Public Project
Revenue Bonds
Year Ending
December 31
Year Ending
December 31
Governmental Activities
Edina Emerald Energy Program
Revenue Bonds Bonds
Business-type Activities
Revenue
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
55
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2017, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation 27,935,000$ 8,955,000$ (6,260,000)$ 30,630,000$ 11,475,000$
PIR 25,920,000 1,995,000 (2,105,000) 25,810,000 2,480,000
Public project revenue 20,390,000 - (905,000) 19,485,000 1,045,000
EEEP revenue 28,220 - (11,375) 16,845 -
Less deferred amounts:
Discount on bonds (405,596) (51,148) 42,772 (413,972) -
Premiums 1,989,676 798,791 (295,543) 2,492,924 -
Total bonds payable 75,857,300 11,697,643 (9,534,146) 78,020,797 15,000,000
Compensated absences 4,030,600 1,949,663 (1,805,037) 4,175,226 1,670,090
Governmental activity
Long-term liabilities 79,887,900$ 13,647,306$ (11,339,183)$ 82,196,023$ 16,670,090$
Business-type activities:
Bonds payable:
Revenue bonds 42,620,000$ 15,660,000$ (5,540,000)$ 52,740,000$ 7,177,000$
Less deferred amounts:
Discount on bonds (133,653) (88,558) 20,216 (201,995) -
Premiums 1,881,340 1,575,559 (387,204) 3,069,695 -
Total bonds payable 44,367,687 17,147,001 (5,906,988) 55,607,700 7,177,000
Compensated absences 897,311 282,082 (285,346) 894,047 357,619
Business-type activity
Long-term liabilities 45,264,998$ 17,429,083$ (6,192,334)$ 56,501,747$ 7,534,619$
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, 2017
56
In 2017, the City issued $8,955,000 of General Obligation bonds, Series 2017C to finance a
current refunding of the 2019 through 2030 maturities of the City’s $14,000,000 General
Obligation capital improvement plan bonds, Series 2009A. Savings from the current proceeds
were not placed in escrow. The General Obligation capital improvement plan bonds, Series
2009A will be redeemed February 1, 2018. The current refunding was undertaken to reduce
total debt service payments by $1,440,308 and resulted in an economic gain of $1,186,683.
The City anticipates that ad valorem taxes will be sufficient to pay future debt service on this
issuance. The City also issued $1,640,000 of General Obligation recreational revenue bonds,
series 2017D to finance a current refunding of the 2019 through 2030 maturities of the City’s
$2,440,000 General Obligation Recreational Revenue bonds, Series 2009C. Savings from
the current proceeds were not placed in escrow. The General Obligation recreational
revenues bonds, Series 2009C will be redeemed February 1, 2018. The current refunding
was undertaken to reduce total debt service payments by $235,874 and resulted in an
economic gain of $202,100. The City anticipates Arena revenue will be sufficient to pay future
debt service on this issuance.
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of Total Remaining Principal Pledged
Debt Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009C Recreational Facility Bonds Arena improvements Arena 100% 2010-2030 1,784,025$ 174,625$ 2,507,019$
2012B Recreational Facility Bonds Arena improvements Arena 100% 2013-2020 336,839 130,280 2,507,019
2012C Recreational Facility Bonds Arena improvements Arena 100% 2013-2033 2,625,709 53,794 2,507,019
2013B Recreational Facility Bonds Golf dome improvements Golf 100% 2014-2029 1,138,177 95,540 1,254,412
2015B Recreational Facility Bonds Golf course improvements Golf 100% 2016-2031 2,471,035 177,444 1,254,412
2017B Recreational Facility Bonds Golf course improvements Golf 100% 2018-2033 8,731,070 - 1,254,412
2017B Recreational Facility Bonds Pool improvements Pool 100% 2018-2027 1,019,987 - 962,857
2017D Recreational Facility Bonds Refunding 2009C Arena 100% 2018-2030 1,857,026 - 2,507,019
2011A Utility Revenue Bonds Utility infrastructure Utility 100% 2012-2022 6,376,975 1,281,600 21,360,262
2012A Utility Revenue Bonds Utility infrastructure Utility 100% 2013-2023 4,339,675 717,650 21,360,262
2014A Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2024 4,461,025 640,250 21,360,262
2014B Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2019 3,049,550 2,468,975 21,360,262
2015A Utility Revenue Bonds Utility infrastructure Utility 100% 2016-2025 4,811,400 603,150 21,360,262
2016A Utility Revenue Bonds Utility infrastructure Utility 100% 2017-2027 9,972,756 258,498 21,360,262
2017A Utility Revenue Bonds Utility infrastructure Utility 100% 2018-2028 8,131,239 - 21,360,262
Revenue Pledged Current Year
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
57
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness
payable principally from property taxes. The City of Edina's legal debt margin for 2017 is
computed as follows:
December 31, 2017
Market Value (after fiscal disparities) 10,785,198,454$
Debt Limit (3% of Market Value) 323,555,954$
Amount of debt applicable to debt limit:
Total bonded debt 128,681,845$
Less:
Public improvement revolving bonds (25,810,000)
Revenue bonds (52,740,000)
EEEP revenue bonds (16,845)
Total debt applicable to debt limit 50,115,000$
Legal debt margin 273,440,954$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
58
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
The City participates in various pension plans, total pension expense for the year ended
December 31, 2017 was $5,324,060. 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 1.0 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, 2017
59
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 6.5 percent of their annual
covered salary in calendar year 2017. The City was required to contribute 7.5 percent
for Coordinated Plan members in calendar year 2017. The City’s contributions to the
GERF for the year ended December 31, 2017 were $1,317,596. 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 2017. The City was required to contribute 16.2 percent of pay for
PEPFF members in calendar year 2017. The City’s regular contributions to the PEPFF
for the year ended December 31, 2017 were $1,335,917. 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, 2017
60
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2017, the City reported a liability of $17,519,302 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 2017. 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 $220,299. The net pension liability was measured as of June 30,
2017, 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, 2016 through
June 30, 2017, relative to the total employer contributions received from all of the
PERA’s participating employers. At June 30, 2017, the City’s proportionate share was
.2772 percent, which was an increase of .0116 percent from its proportion measured
as of June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of
$2,448,671 for its proportionate share of the GERF’s pension expense. In addition, the
City recognized an additional $6,363 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota’s contribution of $6 million to the General
Employees Fund.
At December 31, 2017, the City reported its proportionate share of the GERF’s
deferred outflows of resources and deferred inflows of resources, and its contributions
subsequent to the measurement date, related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 577,383$ 1,082,224$
Changes in actuarial assumptions 2,786,864 1,756,312
Differences between projected and actual investment earnings – 9,507
Changes in proportion 699,334 404,102
Contributions paid to the PERA subsequent to the measurement
date 653,093 –
Total 4,716,674$ 3,252,145$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
61
$653,093 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date that will be recognized as a
reduction of the net pension liability in the year ended December 31, 2018. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2018 560,627$
2019 1,126,812$
2020 (132,345)$
2021 (743,658)$
2. PEPFF Pension Costs
At December 31, 2017, the City reported a liability of $10,949,465 for its proportionate
share of the PEPFF’s net pension liability. The net pension liability was measured as
of June 30, 2017, 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, 2016 through
June 30, 2017, relative to the total employer contributions received from all of the
PERA’s participating employers. At June 30, 2017, the City’s proportion was
.811 percent, which was an increase of .012 percent from its proportion measured as
of June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of
$2,707,714 for its proportionate share of the PEPFF’s pension expense. The City also
recognized $72,990 for the year ended December 31, 2017, 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 $9 million to the PEPFF each year, starting in fiscal year 2014.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
62
At December 31, 2017, the City reported its proportionate share of the PEPFF’s
deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 252,036$ 2,892,748$
Changes in actuarial assumptions 14,117,532 15,545,523
Differences between projected and actual investment earnings 104,677 –
Changes in proportion 401,315 82,200
Contributions paid to the PERA subsequent to the measurement
date 679,535 –
Total 15,555,095$ 18,520,471$
$679,535 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2018. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2018 188,619$
2019 188,628$
2020 (210,789)$
2021 (832,937)$
2022 (2,978,432)$
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2017 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 all plans for males
or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living
benefit increases for retirees are assumed to be 1.0 percent per year for GERF through
2044 and PEPFF through 2064 and then 2.5 percent thereafter for both plans.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
63
Actuarial assumptions used in the June 30, 2017 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 most recent five-year experience study for PEPFF was completed
in 2016.
The following changes in actuarial assumptions occurred in 2017:
GERF
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for
active members and 60 percent for vested and non-vested deferred members. The
revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for
vested deferred member liability and 3.0 percent for non-vested deferred member
liability.
The assumed post-retirement benefit increase rate was changed from 1.0
percent per year for all years to 1.0 percent per year through 2044 and 2.5
percent per year thereafter.
PEPFF
Assumed salary increases were changed as recommended in the June 30, 2016
experience study. The net effect is proposed rates that average 0.34 percent lower
than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-
vested deferred members. The CSA has been changed to 33 percent for vested
members and 2.0 percent for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000
fully generational table to the RP-2014 fully generational table (with a base year of
2006), with male rates adjusted by a factor of 0.96. The mortality improvement
scale was changed from Scale AA to Scale MP-2016. The base mortality table for
disabled annuitants was changed from the RP-2000 disabled mortality table to the
mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0 percent for the first three years
of service. Rates beyond the select period of three years were adjusted, resulting
in more expected terminations overall.
Assumed percentage of married female members was decreased from 65 percent
to 60 percent.
Assumed age difference was changed from separate assumptions for male
members (wives assumed to be three years younger) and female members
(husbands assumed to be four years older) to the assumption that males are
two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities
was increased.
The assumed post-retirement benefit increase rate was changed from 1.0 percent
for all years to 1.0 percent per year through 2064 and 2.5 percent thereafter.
The single discount rate changed from 5.6 percent to 7.5 percent.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
64
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 geometric
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 39% 5.10%
International
stocks
19% 5.30%
Bonds 20% .75%
Alternative assets 20% 5.90%
Cash 2% 0.0%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2017 was 7.5 percent. 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 and PEPFF 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.
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 27,173,740$ 17,519,302$ 9,615,392$
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
PEPFF net pension liability 20,621,037$ 10,949,465$ 2,965,048$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
65
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 2017 were:
Employee Employer Employee Employer Required Rate
1,783$ 1,783$ 5% 5% 5%
Contribution Amount Percentage of Covered Payroll
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
66
Note 7 MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN
City employees belonging to International Union of Operating Engineers (IUOE) are participants
in a multiple-employer defined benefit pension plan Central Pension Fund of the International
Union of Operating Engineers and Participating Employers (CRF) administered by the Board of
Trustees of the Central Pension Fund. The plan is a cost-sharing pension plan that is not a state
or local governmental pension plan, is used to provide defined benefit pensions both to
employers that are not state or local governmental employers, and has no predominant state or
local government employer. The Plan issues a publicly available financial report located on their
website at www.cpfiuoe.org.
The City has 52 employees who are covered by the pension plan. The plan provides benefits
such as monthly retirement income, special and early retirement benefits, post-retirement
surviving spouse benefits, and disability benefits. The CPF is a supplemental Pension Fund
authorized by Minnesota Statutes, 356.24, subdivision 1(9). The CPF Plan of Benefits and the
Agreement and Declaration of Trust will serve as the governing documents.
The City’s contributions to the plan are pursuant to a collective bargaining agreement with the
IUOE which expires December 31, 2019. The required contribution rate is $0.75 per hour, which
is applied to all compensated hours, and capped at $5,000 per year. Total employer contributions
for the year ended December 31, 2017 were $86,539. With regard to withdrawal from the pension
plan, the parties agree that the amount that would otherwise be paid in salary or wages will be
contributed instead to the CPF as pre-tax employer contributions.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
67
Note 8 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, 2017
68
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 284,564$
Interest on net OPEB obligation 96,944
Adjustment to annual required contribution (84,099)
Annual OPEB cost (expense) 297,409
Contributions made (118,314)
Increase in net OPEB obligation 179,095
Net OPEB obligation - beginning of year 2,154,288
Net OPEB obligation - end of year 2,333,383$
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, 2015 329,182$ 119,780$ 36.4% 1,929,174$
December 31, 2016 287,036 61,922 21.6% 2,154,288
December 31, 2017 297,409 118,314 39.8% 2,333,383
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
69
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 11.8 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, 2017
70
Note 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of due from other funds and due to other funds account balances as of
December 31, 2017, is as follows:
Payable Fund Amount
Construction Nonmajor - Pedestrian and Cyclist Safety 68,351$
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 -$ -$ 1,880,405$ -$ -$ -$ 1,880,405$
Construction Fund - 3,000,000 - - 83,887 29,071 3,112,958
Nonmajor Governmental - - - - - 63,900 63,900
Utilities Fund - - 100,000 - - - 100,000
Liquor Fund 50,000 - 100,000 200,000 200,000 200,000 750,000
50,000$ 3,000,000$ 2,080,405$ 200,000$ 283,887$ 292,971$ 5,907,263$
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 $50,000, $200,000, $200,000, $100,000 and $100,000 to the
general, golf course, arena, art center, and centennial lakes funds, respectively, to
subsidize operations.
2. The construction fund transferred $83,887 and $29,071 to the arena and edinborough
park, respectively, to subsidize capital improvements to those facilities.
3. The environmental efficiency fund transferred $63,900 to the edinborough fund to
subsidize capital improvements.
4. The utilities fund and liquor fund transferred $100,000 each to the construction fund to
fund the capital improvement program, as planned in the 2017 budget.
5. The general fund transferred $1,880,405 of the 2016 unassigned fund balance to the
construction fund to subsidize the capital improvement program.
6. The construction fund transferred $3,000,000 of PIR assessment revenue to the debt
service fund for related debt payments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
71
Note 10 TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are the administering authorities for the
following Tax Increment Districts:
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
District number 1211 (Pentagon Park Increment Financing District) is an economic development
district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043.
District number 1212 (Grandview 2 Increment Financing District) is an economic development
district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1214 (66 West Increment Financing District) is an economic development district
established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1215 (50th and France 2) is an economic development district established in 2017
pursuant to Minnesota Statutes with a termination date of 2045.
The following table reflects values as of December 31, 2017:
TIF #1208 TIF #1211 TIF #1212 TIF #1214 TIF #1215 Total
Original tax capacity 7,289,563$ 691,608$ 44,026$ 32,456$ 15,148$ 8,072,801$
Current tax capacity 12,825,962 854,460 44,026 32,456 15,148 13,772,052
Fiscal Disparities 1,121,666 52,458 - - - 1,174,124
Tax capacity change 4,414,733 110,394 - - - 4,525,127
Captured tax capacity value:
Retained captured tax capacity 4,414,733$ 110,394$ -$ -$ -$ 4,525,127$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
72
Note 11 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 $150,000, with a $1,000,000 per occurrence
maximum.
Liquor liability coverage is provided through the League of Minnesota Cities Insurance
Trust. The City pays an annual premium for this coverage and has a $1,000,000 annual
maximum.
Settlement claims have not exceeded insurance coverage for each of the past three
years. There were no significant decreases in insurance coverage during 2017.
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, 2017.
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, 2017
73
Note 12 CONDUIT DEBT OBLIGATION
As of December 31, 2017, the City of Edina had four series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $28,690,000. 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 13 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 14 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, 2017,
the City paid a total of $59,052 in membership fees to the PSTF.
Note 15 SUBSEQUENT EVENT
On June 5, 2018 the City issued General Obligation bonds, Series 2018A totaling $5,515,000.
These bonds were issued with interest rates ranging from 3.0 to 4.0 percent with a final maturity
of February 1, 2035.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
74
Note 16 FUND BALANCES
A. Classifications
At December 31, 2017, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund
Debt Service
Fund
Construction
Fund
Nonmajor
Funds Total
Nonspendable
Prepaid items 13,124$ -$ -$ -$ -$ 13,124$
Restricted
Park dedication 961,133 - - - - 961,133
Tax increments - 11,420,325 - - - 11,420,325
Affordable housing - 2,026,871 - - - 2,026,871
Debt service - - 17,000,806 - - 17,000,806
Pedestrian and cyclist improvements - - - - 23,765 23,765
Energy efficiency projects - - - - 78,702 78,702
Forfeitures - - - - 498,362 498,362
Grant funds - - - - 85,597 85,597
Arts and culture - - - - 20,781 20,781
Donations - - - - 130,933 130,933
Conservation and sustainability initiatives - - - - 246,922 246,922
Total Restricted 961,133 13,447,196 17,000,806 - 1,085,062 32,494,197
Assigned
Compensated absences 1,670,090 - - - - 1,670,090
Race and equity 68,989 - - - - 68,989
Construction commitments - - - 258,875 - 258,875
Special projects - - - 1,849,513 - 1,849,513
Equipment - - - 3,877,575 - 3,877,575
PIR - - - 3,015,909 - 3,015,909
Construction - - - 6,708,749 - 6,708,749
Total Assigned 1,739,079 - - 15,710,621 - 17,449,700
Unassigned 15,656,518 - - - - 15,656,518
Total Fund Balance 18,369,854$ 13,447,196$ 17,000,806$ 15,710,621$ 1,085,062$ 65,613,539$
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, 2017, the City has $15,656,518 of unassigned fund balance in the
general fund, or 54.9% of 2018 budgeted property tax revenue. This amount is $2,264,772
above the goal range identified in the policy.
C. Deficit Fund Equity
The following funds had deficit fund balance/net position at December 31, 2017:
Nonmajor Proprietary Funds:
Art Center (113,135)$
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
2017
Actual Variance with
Original Final Amounts Final Budget
Revenues:
Taxes:
General property taxes 26,860,319$ 26,860,319$ 26,783,198$ (77,121)$
Franchise taxes 790,000 790,000 889,872 99,872
Lodging tax 20,000 20,000 21,006 1,006
Total taxes 27,670,319 27,670,319 27,694,076 23,757
Licenses and permits: 4,192,660 4,192,660 5,324,710 1,132,050
Intergovernmental:
Federal: 56,000 56,000 56,730 730
State:
Municipal state aid 195,000 195,000 195,000 -
Other 130,000 130,000 165,169 35,169
State aid - police 320,000 320,000 419,165 99,165
State aid - fire 375,573 375,573 428,565 52,992
Health programs 118,977 118,977 118,977 -
Total intergovernmental 1,195,550 1,195,550 1,383,606 188,056
Charges for services:
Administration - - 23,089 23,089
Communications & Technology 132,966 132,966 102,821 (30,145)
Finance 510,936 510,936 484,469 (26,467)
Public Works 170,000 170,000 42,463 (127,537)
Engineering 225,400 225,400 293,414 68,014
Police 321,706 321,706 644,516 322,810
Fire 2,270,160 2,270,160 2,465,678 195,518
Parks & Recreation 281,505 281,505 599,741 318,236
Community Development 105,300 105,300 73,228 (32,072)
Total charges for services 4,017,973 4,017,973 4,729,419 711,446
Fines and forfeits 975,000 975,000 1,064,271 89,271
Miscellaneous:
Investment income 120,000 120,000 171,094 51,094
Rental of property 470,700 470,700 459,099 (11,601)
Parkland dedication - - 33,460 33,460
Other 8,100 8,100 97,596 89,496
Total miscellaneous 598,800 598,800 761,249 162,449
Total revenues 38,650,302 38,650,302 40,957,331 2,307,029
Budgeted Amounts
75
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2017
2017
Actual Variance with
Original Final Amounts Final Budget
Expenditures:
Current:
General government:
Administration:
Personal services 892,228$ 892,228$ 941,398$ 49,170$
Contractual services 752,135 752,135 672,052 (80,083)
Commodities 91,100 91,100 36,429 (54,671)
Central services 104,041 104,041 102,859 (1,182)
Total administration 1,839,504 1,839,504 1,752,738 (86,766)
Communications & technology:
Personal services 706,856 706,856 741,426 34,570
Contractual services 259,700 259,700 232,318 (27,382)
Commodities 85,500 85,500 49,081 (36,419)
Central services 152,461 152,461 148,304 (4,157)
Total communications & technology 1,204,517 1,204,517 1,171,129 (33,388)
Human Resources:
Personal services 744,076 744,076 752,130 8,054
Contractual services 37,200 37,200 27,003 (10,197)
Commodities 2,500 2,500 1,888 (612)
Central services 28,979 28,979 27,401 (1,578)
Total human resources 812,755 812,755 808,422 (4,333)
Finance:
Personal services 546,638 546,638 562,736 16,098
Contractual services 267,100 267,100 269,444 2,344
Commodities 14,100 14,100 12,572 (1,528)
Central services 52,907 52,907 51,776 (1,131)
Total finance 880,745 880,745 896,528 15,783
Community development:
Personal services 1,330,210 1,330,210 1,330,551 341
Contractual services 343,200 343,200 238,573 (104,627)
Commodities 8,200 8,200 15,229 7,029
Central services 128,367 128,367 124,983 (3,384)
Total community development 1,809,977 1,809,977 1,709,336 (100,641)
Total general government 6,547,498 6,547,498 6,338,153 (209,345)
Public safety:
Police:
Personal services 8,985,956 8,985,956 8,963,122 (22,834)
Contractual services 1,081,870 1,081,870 1,124,893 43,023
Commodities 95,715 95,715 75,957 (19,758)
Central services 1,274,827 1,274,827 1,227,729 (47,098)
Total police 11,438,368 11,438,368 11,391,701 (46,667)
Fire:
Personal services 6,321,685 6,321,685 6,303,397 (18,288)
Contractual services 583,750 583,750 557,776 (25,974)
Commodities 250,100 250,100 239,183 (10,917)
Central services 591,271 591,271 561,001 (30,270)
Total fire 7,746,806 7,746,806 7,661,357 (85,449)
Total public safety 19,185,174 19,185,174 19,053,058 (132,116)
Budgeted Amounts
76
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2017
2017
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
Public works:
Public works:
Personal services 4,688,732$ 4,688,732$ 4,622,704$ (66,028)$
Contractual services 1,709,600 1,709,600 1,571,369 (138,231)
Commodities 1,679,150 1,679,150 1,652,258 (26,892)
Central services 1,650,472 1,650,472 1,529,579 (120,893)
Total public works 9,727,954 9,727,954 9,375,910 (352,044)
Engineering:
Personal services 1,370,923 1,370,923 1,269,697 (101,226)
Contractual services 116,500 116,500 79,705 (36,795)
Commodities 25,000 25,000 30,231 5,231
Central services 129,747 129,747 121,721 (8,026)
Total engineering 1,642,170 1,642,170 1,501,354 (140,816)
Total public works 11,370,124 11,370,124 10,877,264 (492,860)
Parks:
Parks & recreation:
Personal services 997,720 997,720 1,002,090 4,370
Contractual services 435,522 435,522 506,885 71,363
Commodities 86,800 86,800 96,549 9,749
Central services 77,464 77,464 75,384 (2,080)
Total parks & recreation 1,597,506 1,597,506 1,680,908 83,402
Total parks 1,597,506 1,597,506 1,680,908 83,402
Total expenditures 38,700,302 38,700,302 37,949,383 (750,919)
Revenues over (under) expenditures (50,000) (50,000) 3,007,948 3,057,948
Other financing sources (uses):
Transfer from other funds 50,000 50,000 50,000 -
Transfer to other funds - (1,880,405) (1,880,405) -
Total financing sources (uses) 50,000 (1,830,405) (1,830,405) -
Net increase (decrease) in fund balance -$ (1,880,405)$ 1,177,543 3,057,948$
Fund balance - January 1 17,192,311
Fund balance - December 31 18,369,854$
77
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2017
2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 95,000$ 95,000$ 95,414$ 414$
Tax increment collections 2,500,000 2,500,000 3,422,898 922,898
Intergovernmental - - 3,046 3,046
Investment income 62,000 62,000 143,481 81,481
Charges for services 7,275,000 7,275,000 42,400 (7,232,600)
Total revenues 9,932,000 9,932,000 3,707,239 (6,224,761)
Expenditures:
Current:
Personal services 129,068 129,068 135,740 6,672
Contractual services 679,865 679,865 337,062 (342,803)
Commodities 1,500 1,500 2,121 621
Capital outlay 10,150,000 10,150,000 1,584,867 (8,565,133)
Total expenditures 10,960,433 10,960,433 2,059,790 (8,900,643)
Net increase (decrease) in fund balance (1,028,433)$ (1,028,433)$ 1,647,449 2,675,882$
Fund balance - January 1 11,799,747
Fund balance - December 31 13,447,196$
Budgeted Amounts
78
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2017
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%
79
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2017
12/31/2015 6/30/2015 0.2683% 13,765,652$ -$ 13,765,652$ 15,508,173$ 88.76% 78.20%
12/31/2016 6/30/2016 0.2656% 21,349,748 278,868 21,628,616 16,481,973 131.23% 68.91%
12/31/2017 6/30/2017 0.2772% 17,519,302 220,299 17,739,601 17,858,560 99.33% 75.90%
12/31/2015 1,248,845$ 1,248,845$ -$ 16,651,267$ 7.50%
12/31/2016 1,265,817 1,265,817 - 16,877,560 7.50%
12/31/2017 1,317,596 1,317,596 - 17,567,947 7.50%
Schedule of City's and Non-Employer Proportionate Share of Net Pension Liability
Covered
Payroll
Contributions as a
Percentage of Covered
Payroll
Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to present 10-year trend information.
Additional years will be added as they become available.
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
80
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2017
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%
12/31/2017 6/30/2017 0.8110% 10,949,465 8,322,605 131.56% 85.43%
12/31/2015 1,268,476$ 1,268,476$ -$ 7,830,099$ 16.20%
12/31/2016 1,272,485 1,272,485 - 7,854,846 16.20%
12/31/2017 1,335,917 1,335,917 - 8,246,401 16.20%
Note: The City implemented GASB Statement No. 68 in fiscal 2015 (using a June 30, 2015 measurement date). This schedule is intended to
present 10-year trend information. Additional years will be added as they become available.
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
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
81
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
82
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, 2017
83
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
Finance 880,745$ 896,528$ 15,783$
Parks
Parks & recreation 1,597,506 1,680,908 83,402
Excess expenditures in the General Fund finance department are due to an increase in salaries due
to a new position being added in 2017 that was not budgeted for.
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 7,765,961$ 7,855,926$ 89,965$
Construction Fund 7,596,772 8,919,215 1,322,443
PACS Fund 1,005,365 1,083,506 78,141
CAS Fund 157,495 174,606 17,111
Police Fund 140,500 156,703 16,203
CDBG Fund 125,000 131,191 6,191
Excess expenditures in the debt service fund are the result of unbudgeted refunding’s of debt.
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 fund are the result of project costs and consulting services being
higher than anticipated.
Excess expenditures in the CAS fund are the result of energy efficiency capital asset upgrades being
purchased for the arena.
Excess expenditures in the police fund are the result of purchasing new squad car technology.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
84
Note C PENSION INFORMATION
General Employees Retirement Fund
2017 Changes
Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active
members and 60 percent for vested and non-vested deferred members. The revised CSA
loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred
member liability and 3.0 percent for non-vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0 percent per
year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 Changes
Changes in Actuarial Assumptions:
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 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 0.25
percent to 3.25 percent for payroll growth and 2.5 percent for inflation.
2015 Changes
Changes in Plan Provisions:
On January 1, 2015 the Minneapolis Employees Retirement Fund was merged into the
General Employees Fund, which increased the total pension liability by $1.1 billion and
increased the fiduciary plan net position by $892 million. Upon consolidation, state and
employer contributions were revised.
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year
through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2035 and
2.5 percent per year thereafter.
Public Employees Police and Fire Fund
2017 Changes
Changes in Actuarial Assumptions:
Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous
rates.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2017
85
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested
deferred members. The CSA has been changed to 33 percent for vested members and 2
percent for non-vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed
from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3.0 percent for the first three years of service.
Rates beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
Assumed percentage of married female members was decreased from 65 percent to 60
percent.
Assumed age difference was changed from separate assumptions for male members
(wives assumed to be three years younger) and female members (husbands assumed to
be four years older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was
increased.
The assumed post-retirement benefit increase rate was changed from 1.0 percent for all
years to 1.0 percent per year through 2064 and 2.5 percent thereafter.
The single discount rate changed from 5.6 percent to 7.5 percent.
2016 Changes
Changes in Actuarial Assumptions:
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 changed from 7.9 percent to 5.6 percent.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25
percent to 3.25 percent for payroll growth and 2.5 percent for inflation.
2015 Changes
Changes in Plan Provisions:
The post-retirement benefit increase to be paid after attainment of the 90 percent funding
threshold was changed, from inflation up to 2.5 percent, to a fixed rate of 2.5 percent.
Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year
through 2030 and 2.5 percent per year thereafter to 1.0 percent per year through 2037 and
2.5 percent per year thereafter.
86
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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 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
87
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2017
Capital
Projects
Community Pedestrian Conservation Total Nonmajor
Development Braemar and Cyclist Arts and and Environmental Governmental
Block Grant Police Memorial Safety Culture Sustainability Efficiency Funds
Assets
Cash and investments -$ 583,634$ 129,821$ -$ 20,729$ 199,453$ 141,759$ 1,075,396$
Accrued interest - - 462 - 52 640 693 1,847
Accounts receivable - - 650 292,289 - 60,394 - 353,333
Due from other governments - 9,338 - - 100 - - 9,438
Total assets -$ 592,972$ 130,933$ 292,289$ 20,881$ 260,487$ 142,452$ 1,440,014$
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Liabilities:
Accounts payable -$ 9,013$ -$ 9,357$ -$ 11,520$ 63,750$ 93,640$
Salaries payable - - - 2,371 - 2,045 - 4,416
Contracts payable - - - 188,445 - - - 188,445
Due to other funds - - - 68,351 - - 68,351
Total liabilities - 9,013 - 268,524 - 13,565 63,750 354,852
Deferred inflows of resources
Unavailable revenue - taxes - - - - 100 - - 100
Fund balance:
Restricted - 583,959 130,933 23,765 20,781 246,922 78,702 1,085,062
Total liabilities, deferred
inflows of resources,
and fund balance -$ 592,972$ 130,933$ 292,289$ 20,881$ 260,487$ 142,452$ 1,440,014$
Special Revenue
88
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2017
Capital
Projects
Community Pedestrian Conservation Total Nonmajor
Development Braemar and Cyclist Arts and and Environmental Governmental
Block Grant Police Memorial Safety Culture Sustainability Efficiency Funds
Revenues:
General property taxes -$ -$ -$ -$ 20,000$ -$ -$ 20,000$
Franchise taxes - - - 1,176,085 - 242,650 - 1,418,735
Intergovernmental 131,191 15,000 - 113,131 - - - 259,322
Fines and forfeitures - 71,715 - - - - - 71,715
Investment income - 21 1,539 - 174 2,145 - 3,879
Other revenues - 112,061 1,050 8,900 2,631 1,988 - 126,630
Total revenues 131,191 198,797 2,589 1,298,116 22,805 246,783 - 1,900,281
Expenditures:
Current:
General government 131,191 - - - - 121,462 - 252,653
Public safety - 149,609 - - - - - 149,609
Public works - - - 231,319 - - - 231,319
Parks - - - - 11,579 - - 11,579
Capital Outlay:
Public safety - 7,094 - - - - - 7,094
Public works - - - 852,187 - - 66,908 919,095
Parks - - 19,739 - - 53,144 - 72,883
Total expenditures 131,191 156,703 19,739 1,083,506 11,579 174,606 66,908 1,644,232
Revenues over (under)
expenditures - 42,094 (17,150) 214,610 11,226 72,177 (66,908) 256,049
Other financing sources (uses):
Transfers out - - - - - - (63,900) (63,900)
Net increase (decrease)
in fund balance - 42,094 (17,150) 214,610 11,226 72,177 (130,808) 192,149
Fund balance (deficits) -
January 1 - 541,865 148,083 (190,845) 9,555 174,745 209,510 892,913
Fund balance -
December 31 -$ 583,959$ 130,933$ 23,765$ 20,781$ 246,922$ 78,702$ 1,085,062$
Special Revenue
89
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 125,000$ 125,000$ 131,191$ 6,191$
Expenditures:
Current:
Contractual services 125,000 125,000 131,191 6,191
Net increase (decrease) in fund balance -$ -$ - -$
Fund balance - January 1 -
Fund balance - December 31 -$
Budgeted Amounts
90
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - POLICE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 36,000$ 36,000$ 15,000$ (21,000)$
Fines and forfeiture - - 71,715 71,715
Investment income 300 300 21 (279)
Other revenues 134,061 134,061 112,061 (22,000)
Total revenues 170,361 170,361 198,797 28,436
Expenditures:
Current:
Contractual services 98,000 98,000 44,122 (53,878)
Commodities 15,000 15,000 105,487 90,487
Capital outlay 27,500 27,500 7,094 (20,406)
Total expenditures 140,500 140,500 156,703 16,203
Net increase (decrease) in fund balance 29,861$ 29,861$ 42,094 12,233$
Fund balance - January 1 541,865
Fund balance - December 31 583,959$
Budgeted Amounts
91
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
Investment income 200$ 200$ 1,539$ 1,339$
Donations 5,000 5,000 1,050 (3,950)
Total revenues 5,200 5,200 2,589 (2,611)
Expenditures:
Capital outlay 79,000 79,000 19,739 (59,261)
Net increase (decrease) in fund balance (73,800)$ (73,800)$ (17,150) 56,650$
Fund balance - January 1 148,083
Fund balance - December 31 130,933$
Budgeted Amounts
92
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 1,200,000$ 1,200,000$ 1,176,085$ (23,915)$
Intergovernmental - - 113,131 113,131
Other revenues - - 8,900 8,900
Total revenues 1,200,000 1,200,000 1,298,116 98,116
Expenditures:
Current:
Personal services 116,531 116,531 119,608 3,077
Contractual services 20,000 20,000 108,161 88,161
Commodities 20,000 20,000 2,816 (17,184)
Central services 734 734 734 -
Capital outlay 848,100 848,100 852,187 4,087
Total expenditures 1,005,365 1,005,365 1,083,506 78,141
Net increase (decrease) in fund balance 194,635$ 194,635$ 214,610 19,975$
Fund balance (deficits) - January 1 (190,845)
Fund balance - December 31 23,765$
Budgeted Amounts
93
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 20,000$ 20,000$ 20,000$ -$
Investment income - - 174 174
Other revenues 5,350 5,350 2,631 (2,719)
Total revenues 25,350 25,350 22,805 (2,545)
Expenditures:
Current:
Personal services - - 22 22
Contractual services 20,425 20,425 10,825 (9,600)
Commodities 2,025 2,025 732 (1,293)
Total expenditures 22,450 22,450 11,579 (10,871)
Net increase (decrease) in fund balance 2,900$ 2,900$ 11,226 8,326$
Fund balance - January 1 9,555
Fund balance - December 31 20,781$
Budgeted Amounts
94
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 250,000$ 250,000$ 242,650$ (7,350)$
Investment income - - 2,145 2,145
Other revenues - - 1,988 1,988
Total revenues 250,000 250,000 246,783 (3,217)
Expenditures:
Current:
Personal services 106,761 106,761 102,941 (3,820)
Contractual services 35,000 35,000 17,531 (17,469)
Commodities 15,000 15,000 256 (14,744)
Central services 734 734 734 -
Capital outlay - - 53,144 53,144
Total expenditures 157,495 157,495 174,606 17,111
Net increase (decrease) in fund balance 92,505$ 92,505$ 72,177 (20,328)$
Fund balance - January 1 174,745
Fund balance - December 31 246,922$
Budgeted Amounts
95
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, 2017
Actual Variance with
Original Final Amounts Final budget
Expenditures:
Capital outlay 67,900 67,900 66,908 (992)
Other financing sources (uses):
Transfers out - - (63,900) (63,900)
Net increase (decrease) in fund balance (67,900)$ (67,900)$ (130,808) (62,908)$
Fund balance - January 1 209,510
Fund balance - December 31 78,702$
Budgeted Amounts
96
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
97
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 4,595,500$ 4,595,500$ 4,560,803$ (34,697)$
Special assessments - - 207,504 207,504
Investment income 10,000 10,000 19,925 9,925
Total revenues 4,605,500 4,605,500 4,788,232 182,732
Expenditures:
Debt Service 7,765,961 7,765,961 7,855,926 89,965
Revenues over (under) expenditures (3,160,461) (3,160,461) (3,067,694) 92,767
Other financing sources (uses):
Transfers in 2,850,783 2,850,783 3,000,000 149,217
Bonds issued - - 107,886 107,886
Refunding bonds issued - - 8,955,000 8,955,000
Refunded bonds paid from escrow (3,785,000) (3,785,000) (3,785,000) -
Premium on bonds issued - - 642,105 642,105
Discount on bonds issued - - (38,959) (38,959)
Total other financing
sources (uses) (934,217) (934,217) 8,881,032 9,815,249
Net increase (decrease) in fund balance (4,094,678)$ (4,094,678)$ 5,813,338 9,908,016$
Fund balance - January 1 11,187,468
Fund balance - December 31 17,000,806$
Budgeted Amounts
98
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, 2017
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 2,251,550$ 2,251,550$ 2,237,135$ (14,415)$
Franchise taxes 105,000 105,000 100,277 (4,723)
Special assessments 4,612,026 4,612,026 5,123,262 511,236
License and permits 90,000 90,000 78,512 (11,488)
Intergovernmental 1,375,000 1,375,000 2,041,288 666,288
Charges for services 35,000 35,000 145,354 110,354
Investment income 70,000 70,000 174,069 104,069
Other revenues - - 537,055 537,055
Total revenues 8,538,576 8,538,576 10,436,952 1,898,376
Expenditures:
Current:
Personal services 107,237 107,237 104,861 (2,376)
Contractual services 221,203 221,203 300,210 79,007
Commodities 26,933 26,933 43,101 16,168
Central services 1,968 1,968 1,770 (198)
Capital outlay 7,239,431 7,239,431 8,469,273 1,229,842
Total expenditures 7,596,772 7,596,772 8,919,215 1,322,443
Revenues over (under) expenditures 941,804 941,804 1,517,737 575,933
Other financing sources (uses):
Transfers in 200,000 200,000 2,080,405 1,880,405
Transfers out (2,850,783) (2,850,783) (3,112,958) (262,175)
Sale of capital assets - - 84,388 84,388
Bonds issued 3,108,982 3,108,982 1,887,114 (1,221,868)
Premium on bonds issued - - 156,686 156,686
Discount on bonds issued - - (12,189) (12,189)
Total other financing -
sources (uses) 458,199 458,199 1,083,446 625,247
Net increase (decrease) in fund balance 1,400,003$ 1,400,003$ 2,601,183 1,201,180$
Fund balance - January 1 13,109,438
Fund balance - December 31 15,710,621$
Budgeted Amounts
99
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100
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
101
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
December 31, 2017
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Assets
Current assets:
Cash and investments 199,908$ 2,244,161$ 794,124$ 596,225$ 3,834,418$
Interest receivable 635 6,745 2,604 1,597 11,581
Accounts receivable - 1,891 91 18,400 20,382
Inventory 8,718 - - - 8,718
Total current assets 209,261 2,252,797 796,819 616,222 3,875,099
Noncurrent assets:
Net capital assets 68,439 1,040,616 215,899 7,998,656 9,323,610
Deferred outflows of resources:
Defined benefit pension plans 95,286 142,930 95,286 47,643 381,145
Total assets and deferred
outflows of resources 372,986 3,436,343 1,108,004 8,662,521 13,579,854
Liabilities:
Current liabilities:
Accounts payable 10,563 45,052 10,421 23,946 89,982
Salaries payable 6,398 21,034 15,535 3,072 46,039
Contracts payable - 80,657 - - 80,657
Due to other governments 721 9,667 1,613 6,273 18,274
Unearned revenue 9,215 30 - - 9,245
Compensated absences payable 12,016 14,188 34,650 - 60,854
Total current liabilities 38,913 170,628 62,219 33,291 305,051
Noncurrent liabilities:
Net OPEB obligation 9,558 19,084 16,791 - 45,433
Net pension liability 353,925 530,888 353,925 176,963 1,415,701
Compensated absences payable 18,025 21,281 51,976 - 91,282
Total noncurrent liabilities 381,508 571,253 422,692 176,963 1,552,416
Deferred inflows of resources:
Defined benefit pension plans 65,700 98,550 65,700 32,850 262,800
Total liabilities and deferred
inflows of resources 486,121 840,431 550,611 243,104 2,120,267
Net position:
Net investment in capital assets 68,439 959,959 215,899 7,998,656 9,242,953
Unrestricted (181,574) 1,635,953 341,494 420,761 2,216,634
Total net position (113,135)$ 2,595,912$ 557,393$ 8,419,417$ 11,459,587$
102
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2017
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Operating revenues:
Sales - retail 42,504$ -$ -$ -$ 42,504$
Sales - concessions 652 150,627 22,998 - 174,277
Memberships 14,213 148,235 - - 162,448
Admissions - 716,309 - 21,882 738,191
Building rental - 242,545 86,047 466,904 795,496
Rental of equipment - 12,248 119,994 - 132,242
Greens fees - - 247,326 - 247,326
Class registration & other fees 437,004 316,007 302,043 1,090 1,056,144
Total operating revenues 494,373 1,585,971 778,408 489,876 3,348,628
Operating expenses:
Cost of sales and services - 71,514 8,488 - 80,002
Personal services 494,764 710,273 644,001 121,400 1,970,438
Contractual services 95,853 340,886 144,192 150,864 731,795
Commodities 67,108 136,232 116,002 29,648 348,990
Central Services 44,451 83,017 71,105 11,772 210,345
Depreciation 22,032 183,781 35,551 511,577 752,941
Total operating expenses 724,208 1,525,703 1,019,339 825,261 4,094,511
Operating income (loss) (229,835) 60,268 (240,931) (335,385) (745,883)
Nonoperating revenues (expenses):
Investment income 2,113 22,501 8,684 5,334 38,632
Donations 20,138 - 8,500 - 28,638
Gain (loss) on sale of capital asset - (798) - - (798)
Miscellaneous - 1,690 55 - 1,745
Total nonoperating
revenues (expenses) 22,251 23,393 17,239 5,334 68,217
Income (loss) before transfers (207,584) 83,661 (223,692) (330,051) (677,666)
Transfers:
Transfers in 100,000 92,971 100,000 - 292,971
Change in net position (107,584) 176,632 (123,692) (330,051) (384,695)
Net position - January 1 (5,551) 2,419,280 681,085 8,749,468 11,844,282
Net position - December 31 (113,135)$ 2,595,912$ 557,393$ 8,419,417$ 11,459,587$
103
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2017
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Cash flows from operating activities:
Receipts from customers and users 494,373$ 1,589,062$ 779,834$ 477,889$ 3,341,158$
Payment to suppliers (210,538) (612,968) (345,043) (180,782) (1,349,331)
Payment to employees (466,505) (664,216) (610,761) (108,662) (1,850,144)
Donations received 20,138 - 8,500 - 28,638
Net cash provided by (used in)
operating activities (162,532) 311,878 (167,470) 188,445 170,321
Cash flows from noncapital financing activities:
Transfer from other funds 100,000 92,971 100,000 - 292,971
Proceeds from interfund borrowing - - - 44,719 44,719
Miscellaneous received - 1,690 55 - 1,745
Net cash provided by noncapital
financing activities 100,000 94,661 100,055 44,719 339,435
Cash flows from capital and related financing activities:
Acquisition of capital assets - (29,072) - (2,104) (31,176)
Cash flows from investing activities:
Interest received 2,136 21,076 8,218 4,807 36,237
Net increase (decrease) in cash
and investments (60,396) 398,543 (59,197) 235,867 514,817
Cash and investments - January 1 260,304 1,845,618 853,321 360,358 3,319,601
Cash and investments - December 31 199,908$ 2,244,161$ 794,124$ 596,225$ 3,834,418$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss) (229,835)$ 60,268$ (240,931)$ (335,385)$ (745,883)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 22,032 183,781 35,551 511,577 752,941
Donations 20,138 - 8,500 - 28,638
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables - 3,091 1,426 (11,987) (7,470)
Decrease (increase) in inventory (1,732) - - - (1,732)
Decrease (increase) in deferred outflows
of resources 84,900 127,348 84,900 42,450 339,598
Increase (decrease) in accounts payable (1,404) 17,963 (5,830) 10,073 20,802
Increase (decrease) in salaries payable 1,265 2,105 3,708 1,509 8,587
Increase (decrease) in due to
other governments 10 718 574 1,429 2,731
Increase (decrease) in net OPEB obligation 1,155 1,627 676 - 3,458
Increase (decrease) in net pension liability (77,383) (116,074) (77,383) (38,691) (309,531)
Increase (decrease) in
compensated absences 3,381 8,640 6,398 - 18,419
Increase (decrease) in deferred inflows
of resources 14,941 22,411 14,941 7,470 59,763
Total adjustments 67,303 251,610 73,461 523,830 916,204
Net cash provided by (used in)
operating activities (162,532)$ 311,878$ (167,470)$ 188,445$ 170,321$
Noncash investing activities:
Increase (decrease) in
fair value of investments 9$ (1,522)$ (507)$ (544)$ (2,564)$
Noncash noncapital financing activities:
Acquisition of capital assets with
contracts payable -$ (57,981)$ -$ 2,104$ (55,877)$
104
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.
Minnesota Task Force 1 - This fund accounts for assets and liabilities of the
Minnesota Task Force 1, which is comprised of personnel and equipment from
public safety and specialist personnel from supporting entities that operates as
part of a joint powers agreement that the City has administrative responsibilities for.
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
105
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106
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2017
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 706,815$ 873,420$ 1,136,849$ 443,386$
Liabilities:
Accounts payable 23,188$ 292,467$ 294,284$ 21,371$
Contracts payable 292,373 13,350 305,723 -
Salaries payable 5,241 283,499 282,816 5,924
Due to other governmental units 386,013 284,104 254,026 416,091
Total Liabilities 706,815$ 873,420$ 1,136,849$ 443,386$
MINNESOTA TASK FORCE 1
Assets:
Due from other governmental units -$ 1,070,207$ 1,020,014$ 50,193$
Liabilities:
Salaries payable -$ 140,826$ 138,019$ 2,807$
Due to other governmental units - 929,381 881,995 47,386
Total Liabilities -$ 1,070,207$ 1,020,014$ 50,193$
PAYROLL
Assets:
Cash and investments 16,306$ 20,489,539$ 20,287,035$ 218,810$
Liabilities:
Accounts payable 16,306$ 20,489,539$ 20,287,035$ 218,810$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and investments 723,828$ 21,362,959$ 21,423,884$ 662,903$
Due from other governmental units - 1,070,207 1,020,014 50,193
Total Assets 723,828$ 22,433,166$ 22,443,898$ 713,096$
Liabilities:
Accounts payable 39,494$ 20,782,006$ 20,581,319$ 240,181$
Contracts payable 292,373 13,350 305,723 -
Salaries payable 5,241 424,325 420,835 8,731
Due to other governmental units 386,720 1,213,485 1,136,021 464,184
Total Liabilities 723,828$ 22,433,166$ 22,443,898$ 713,096$
107
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108
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2014 2015 2016 2017 2018
Total tax capacity 108,069,277$ 117,907,214$ 125,663,820$ 132,180,439$ 141,934,212$
Increment valuation (4,948,237) (1,618,920) (2,493,368) (3,474,097) (4,525,127)
Contribution to fiscal
disparities pool (9,513,808) (9,626,075) (10,679,187) (11,851,919) (12,166,916)
Tax capacity used
for rate calculation 93,607,232 106,662,219 112,491,265 116,854,423 125,242,169
Fiscal disparities distribution 2,548,571 2,540,472 2,636,381 2,901,964 3,210,559
Adjusted net tax capacity 96,155,803$ 109,202,691$ 115,127,646$ 119,756,387$ 128,452,728$
Tax levies:
General fund 22,509,403$ 22,933,958$ 25,023,952$ 26,860,319$ 28,493,077$
Arts & culture fund - 20,000 20,000 20,000 20,000
Equipment 992,072 1,617,072 1,680,000 2,251,550 2,567,000
Debt service 3,325,597 4,510,380 4,503,521 4,595,500 4,579,700
HRA operating - - - 95,000 125,000
Total certified tax levies 26,827,072 29,081,410 31,227,473 33,822,369 35,784,777
Referendum market value levy 627,800 618,600 571,650 - -
Total levy 27,454,872$ 29,700,010$ 31,799,123$ 33,822,369$ 35,784,777$
Tax capacity rate:
General fund revenue 24.458 22.477 23.223 24.348 24.187
Bonds & interest 3.462 4.128 3.914 3.841 3.564
Total tax capacity rate 27.920 26.605 27.137 28.189 27.751
Market value rate 0.00695 0.00631 0.00550 - -
109
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2017
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 1,810,000
GO Capital Improvement Plan, Series 2009A 3.00 - 4.40 04/29/09 02/01/18 14,000,000 3,290,000
GO Capital Improvement Plan, Series 2010A 2.00 - 4.00 11/18/10 02/01/21 8,285,000 4,155,000
GO Capital Improvement Plan, Series 2013A -
Refunding 3.00 - 3.50 10/10/13 02/01/30 5,710,000 860,000
GO Refunding, Series 2014B 3.00 12/11/14 02/01/17 1,105,000 550,000
GO Refunding, Series 2016A 2.00 - 3.00 07/06/16 02/01/28 3,635,000 - GO Refunding, Series 2017C 2.05 - 4.00 12/14/17 02/01/29 - -
Total General Obligation Bonds 38,600,000 10,665,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 870,000
GO Permanent Improvement Revolving
Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 920,000
GO Permanent Improvement Revolving
Series 2012A 3.00 - 4.00 11/15/12 02/01/29 2,675,000 285,000
GO Permanent Improvement Revolving
Series 2012A - Refunding 3.00 - 4.00 11/15/12 02/01/19 1,990,000 1,020,000
GO Permanent Improvement Revolving
Series 2013A 3.00 - 3.50 10/10/13 02/01/30 2,555,000 140,000
GO Permanent Improvement Revolving
Series 2014B - Refunding 2.00 - 3.00 12/11/14 02/01/20 4,075,000 745,000
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 3,940,000 - GO Permanent Improvement Revolving
Series 2017A 3.00 - 4.00 06/29/17 02/01/34 - -
Total PIR Bonds 29,900,000 3,980,000
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 16,155,000 615,000
HRA Public Project Revenue, Series 2015A -Refunding 2.50 - 3.00 07/09/15 05/01/26 3,490,000 285,000
Total Public Project Revenue Bonds 22,240,000 1,850,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A 7.00 02/25/12 01/01/23 33,690 13,476 Edina Emerald Energy Progrm Revenue, 2012B 5.50 08/28/12 01/01/18 40,030 32,024
Total Public Project Revenue Bonds 73,720 45,500
Revenue Bonds:
Recreational Facility Bonds, Series 2009B 2.00 - 3.00 04/29/09 01/01/17 2,010,000 1,925,000
Recreational Facility Bonds, Series 2009C 2.00 - 4.00 12/10/09 02/01/18 2,440,000 585,000
Recreational Facility Bonds, Series 2012B .45 - 1.60 11/15/12 02/01/20 815,000 360,000
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 1,125,000 115,000
Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 2,140,000 -
Recreational Facility Bonds, Series 2017B 3.00 - 4.00 06/29/17 02/01/33 - -
Recreational Facility Bonds, Series 2017D -
Refunding 2.00 12/20/17 02/01/30 - -
Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 4,170,000
Utility Revenue Bonds, Series 2012A 3.00 - 4.00 11/15/12 02/01/23 6,100,000 1,565,000
Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 1,090,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00 12/11/14 02/01/17 1,830,000 895,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00 12/11/14 02/01/19 5,710,000 1,340,000
Utility Revenue Bonds, Series 2015A 2.00 - 4.00 07/09/15 02/01/25 5,235,000 525,000
Utility Revenue Bonds, Series 2016A 2.00 - 3.00 07/06/16 02/01/27 8,775,000 - Utility Revenue Bonds, Series 2017A 3.00 - 4.00 06/29/17 02/01/28 - -
Total Public Project Revenue Bonds 55,190,000 12,570,000
Total - Bonded indebtedness 146,003,720$ 29,110,500$
Prior Years
110
Principal Interest Interest
Outstanding Payable Due Due Payable
12/31/2016 Issued Payments 12/31/2017 In 2018 In 2018 to Maturity
4,055,000 - 4,055,000 - - - -
10,710,000 - 605,000 10,105,000 10,105,000 195,662 195,662
4,130,000 - 760,000 3,370,000 790,000 119,000 276,600
4,850,000 - 285,000 4,565,000 295,000 131,250 953,038
555,000 - 555,000 - - - -
3,635,000 - - 3,635,000 285,000 94,875 543,400 - 8,955,000 - 8,955,000 - 193,108 1,809,911
27,935,000 8,955,000 6,260,000 30,630,000 11,475,000 733,895 3,778,611
1,435,000 - 225,000 1,210,000 230,000 29,613 87,075
2,400,000 - 320,000 2,080,000 325,000 52,550 185,200
2,390,000 - 150,000 2,240,000 155,000 67,250 430,675
970,000 - 385,000 585,000 360,000 16,200 20,700
2,415,000 - 140,000 2,275,000 145,000 65,425 475,725
3,330,000 - 790,000 2,540,000 815,000 55,175 94,250
6,545,000 - - 6,545,000 355,000 199,125 1,738,689
2,495,000 - 95,000 2,400,000 95,000 77,200 868,800
3,940,000 - - 3,940,000 - 109,550 982,375
- 1,995,000 - 1,995,000 - 73,935 658,236
25,920,000 1,995,000 2,105,000 25,810,000 2,480,000 746,023 5,541,725
1,645,000 - - 1,645,000 125,000 64,604 406,998
15,540,000 - 630,000 14,910,000 635,000 462,594 4,837,367
3,205,000 - 275,000 2,930,000 285,000 80,000 385,113
20,390,000 - 905,000 19,485,000 1,045,000 607,198 5,629,478
20,214 - 3,369 16,845 - 590 3,538 8,006 - 8,006 - - - -
28,220 - 11,375 16,845 - 590 3,538
85,000 - 85,000 - - - -
1,855,000 - 105,000 1,750,000 1,750,000 34,025 34,025
455,000 - 125,000 330,000 125,000 3,999 6,839
2,100,000 - - 2,100,000 - 53,794 525,709
1,010,000 - 65,000 945,000 65,000 28,590 193,177
2,140,000 - 120,000 2,020,000 120,000 55,044 451,035
- 7,425,000 - 7,425,000 80,000 298,606 2,326,056
- 1,640,000 - 1,640,000 57,000 20,136 217,026
7,060,000 - 1,115,000 5,945,000 1,130,000 144,150 431,975
4,535,000 - 575,000 3,960,000 605,000 119,050 379,675
4,590,000 - 530,000 4,060,000 540,000 99,550 401,025
935,000 - 935,000 - - - -
4,370,000 - 1,410,000 2,960,000 1,455,000 66,975 89,550
4,710,000 - 475,000 4,235,000 485,000 118,550 576,400
8,775,000 - - 8,775,000 765,000 230,237 1,197,756 - 6,595,000 - 6,595,000 - 270,589 1,536,239
42,620,000 15,660,000 5,540,000 52,740,000 7,177,000 1,543,295 8,366,487
116,893,220$ 26,610,000$ 14,821,375$ 128,681,845$ 22,177,000$ 3,631,001$ 23,319,839$
2017
111
CITY OF EDINA, MINNESOTA
SCHEDULE OF BALANCE SHEET ACCOUNTS
TAX INCREMENT FINANCING DISTRICTS
December 31, 2017
Grandview Centennial Valley View Southdale 2 Pentagon Park 66th West Total
District District District District District District Tax Increment
No. 1202 No. 1203 No. 1207 No. 1208 No. 1211 No. 1214 Financing Districts
Assets
Cash and Investments (85)$ 5,193,809$ 358,444$ 5,866,683$ 61,299$ -$ 11,480,150$
Accrued interest 95 18,755 1,217 15,724 281 - 36,072
Due from other districts - 3,450,000 - 275,000 - - 3,725,000
Due from other governments - - - 38,373 - - 38,373
Total assets 10$ 8,662,564$ 359,661$ 6,195,780$ 61,580$ -$ 15,279,595$
Liabilities
Accounts payable 10$ 142,925$ -$ -$ 2,537$ -$ 145,472$
Salaries payable - 1,239 - - - - 1,239
Due to other districts - - - 3,350,000 100,000 275,000 3,725,000
Total liabilities 10 144,164 - 3,350,000 102,537 275,000 3,871,711
Fund balance:
Restricted - 8,518,400 359,661 2,845,780 (40,957) (275,000) 11,407,884
Total liabilities and
fund balance 10$ 8,662,564$ 359,661$ 6,195,780$ 61,580$ -$ 15,279,595$
112
CITY OF EDINA, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TAX INCREMENT FINANCING DISTRICTS
For The Year Ended December 31, 2017
Grandview Centennial Valley View Southdale 2 Pentagon Park 66th West Total
District District District District District District Tax Increment
No. 1202 No. 1203 No. 1207 No. 1208 No. 1211 No. 1214 Financing Districts
Revenues:
Tax increment collections -$ -$ -$ 3,422,898$ -$ -$ 3,422,898$
Intergovernmental - 3,046 - - - - 3,046
Charges for services - 40,000 - - - - 40,000
Investment income 304 62,498 4,058 52,651 935 - 120,446
Total revenues 304 105,544 4,058 3,475,549 935 - 3,586,390
Expenditures:
Current:
General government 54,100 286,851 - 19,509 29,088 - 389,548
Capital outlay:
General government - 1,309,867 - - - 275,000 1,584,867
Total expenditures 54,100 1,596,718 - 19,509 29,088 275,000 1,974,415
Revenues over
(under) expenditures (53,796) (1,491,174) 4,058 3,456,040 (28,153) (275,000) 1,611,975
Other financing sources (uses):
Interfund loan interest - 155,000 - (155,000) - - -
Net increase (decrease)
in fund balance (53,796) (1,336,174) 4,058 3,301,040 (28,153) (275,000) 1,611,975
Fund balance - January 1 53,796 9,854,574 355,603 (455,260) (12,804) - 9,795,909
Fund balance - December 31 -$ 8,518,400$ 359,661$ 2,845,780$ (40,957)$ (275,000)$ 11,407,884$
113
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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
116
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.
124
128
133
135
115
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2008 2009 2010 2011
Governmental activities
Net investment in capital assets 71,601,227$ 69,622,370$ 69,783,162$ 75,045,018$
Restricted 3,362,446 7,132,865 9,952,443 22,915,776
Unrestricted 29,577,462 30,705,600 41,709,528 29,544,149
Total governmental
activities net position 104,541,135$ 107,460,835$ 121,445,133$ 127,504,943$
Business-type activities
Net investment in capital assets 46,851,736$ 47,333,794$ 48,807,806$ 56,877,100$
Restricted 954,486 624,837 618,852 623,099
Unrestricted 12,071,776 15,158,720 17,041,122 12,926,674
Total business-type
activities net position 59,877,998$ 63,117,351$ 66,467,780$ 70,426,873$
Primary government
Net investment in capital assets 118,452,963$ 116,956,164$ 118,590,968$ 131,922,118$
Restricted 4,316,932 7,757,702 10,571,295 23,538,875
Unrestricted 41,649,238 45,864,320 58,750,650 42,470,823
Total primary government
net position 164,419,133$ 170,578,186$ 187,912,913$ 197,931,816$
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
116
2012 2013a 2014 2015b 2016 2017
78,644,392$ 83,842,970$ 85,708,114$ 85,838,618$ 93,247,973$ 96,149,011$
23,215,910 20,289,579 18,268,724 16,925,171 20,892,680 22,840,869
29,587,700 33,242,317 31,316,605 21,957,830 22,146,168 26,412,441
131,448,002$ 137,374,866$ 135,293,443$ 124,721,619$ 136,286,821$ 145,402,321$
63,766,144$ 66,126,387$ 75,803,672$ 83,395,794$ 85,158,869$ 82,338,560$
876,909 611,377 619,295 793,664 804,393 1,338,276
14,390,609 16,867,459 21,176,026 16,405,405 17,300,872 22,443,806
79,033,662$ 83,605,223$ 97,598,993$ 100,594,863$ 103,264,134$ 106,120,642$
142,410,536$ 149,969,357$ 161,511,786$ 169,234,412$ 178,406,842$ 178,487,571$
24,092,819 20,900,956 18,888,019 17,718,835 21,697,073 24,179,145
43,978,309 50,109,776 52,492,631 38,363,235 39,447,040 48,856,247
210,481,664$ 220,980,089$ 232,892,436$ 225,316,482$ 239,550,955$ 251,522,963$
Fiscal Year
117
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2008 2009 2010 2011
Expenses
Governmental activities:
General government 6,836,248$ 7,362,560$ 6,961,082$ 7,013,231$
Public safety 14,833,647 14,751,479 15,543,594 16,024,575
Public works 9,046,873 8,993,290 8,558,363 9,193,336
Parks 5,971,565 7,732,777 5,608,758 5,540,585
Interest on long-term debt 1,923,821 2,129,490 2,528,424 2,339,370
Total governmental activities expenses 38,612,154 40,969,596 39,200,221 40,111,097
Business-type activities:
Utilities 10,625,811 11,833,994 11,848,538 12,130,685
Liquor 11,049,223 11,449,194 11,594,643 11,727,106
Aquatic center 787,663 798,369 769,608 718,027
Golf course 3,612,482 3,588,831 3,561,573 3,390,949
Arena 1,689,660 1,665,082 1,527,536 1,689,001
Community activity centers 2,813,189 2,971,293 2,965,243 2,998,915
Total business-type activities expenses 30,578,028 32,306,763 32,267,141 32,654,683
Total primary government expenses 69,190,182$ 73,276,359$ 71,467,362$ 72,765,780$
Program Revenues
Governmental activities:
Charges for services:
General government 840,070$ 811,087$ 946,107$ 969,745$
Public safety 5,839,683 5,081,563 5,448,505 5,988,485
Other activities 763,130 804,500 723,559 775,676
Operating grants and contributions 1,170,183 1,377,785 1,162,411 1,392,892
Capital grants and contributions 7,710,015 2,582,999 13,325,431 5,770,912
Total governmental activities program revenues 16,323,081 10,657,934 21,606,013 14,897,710
Business-type activities:
Charges for services:
Utilities 13,713,249 14,858,488 15,036,016 15,873,937
Liquor 12,122,599 12,655,777 12,857,064 13,172,484
Aquatic center 925,388 859,816 945,529 913,383
Golf course 3,680,584 3,660,466 3,443,204 3,285,741
Arena 1,399,599 1,414,410 1,301,506 1,315,435
Community activity centers 2,117,619 2,192,274 2,194,476 2,331,136
Operating grants and contributions 147,456 135,917 373,230 135,428
Capital grants and contributions - - - -
Total business-type activities program revenues 34,106,494 35,777,148 36,151,025 37,027,544
Total primary government program revenues 50,429,575$ 46,435,082$ 57,757,038$ 51,925,254$
Net (Expense)/Revenue
Governmental activities (22,289,073)$ (30,311,662)$ (17,594,208)$ (25,213,387)$
Business-type activities 3,528,466 3,470,385 3,883,884 4,372,861
Total primary government net expense (18,760,607)$ (26,841,277)$ (13,710,324)$ (20,840,526)$
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes 22,242,276$ 23,834,274$ 25,122,113$ 25,040,871$
Tax increment collections 8,578,434 7,587,386 4,488,073 4,083,345
Franchise taxes 647,466 667,791 692,288 722,160
Lodging taxes - - - -
Unrestricted investment earnings 1,185,899 387,177 474,444 601,250
Gain on disposal of capital assets 1,265 11,709 35,594 131,365
Insurance recovery - - - -
Transfers 967,800 743,025 765,994 694,206
Total governmental activities 33,623,140 33,231,362 31,578,506 31,273,197
Business-type activities:
Property taxes -$ 300,372$ -$ -$
Unrestricted investment earnings 607,312 209,371 205,965 280,438
Gain (loss) on disposal of capital assets 14,505 2,250 26,574 -
Transfers (967,800) (743,025) (765,994) (694,206)
Total business-type activities (345,983) (231,032) (533,455) (413,768)
Total primary government 33,277,157$ 33,000,330$ 31,045,051$ 30,859,429$
Change in Net Position
Governmental activities 11,334,067$ 2,919,700$ 13,984,298$ 6,059,810$
Business-type activities 3,182,483 3,239,353 3,350,429 3,959,093
Total primary government 14,516,550$ 6,159,053$ 17,334,727$ 10,018,903$
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
118
2012 2013a 2014b 2015c 2016 2017
12,598,979$ 8,256,261$ 8,522,319$ 8,518,236$ 9,587,567$ 9,164,272$
16,598,423 17,117,693 18,145,498 19,507,770 20,243,209 21,815,101
9,437,285 11,502,250 15,553,852 15,284,777 19,444,472 17,750,505
5,904,724 6,132,709 3,330,781 3,385,367 3,822,716 4,222,431
2,222,392 2,024,749 1,989,863 2,180,678 2,133,474 1,996,354
46,761,803 45,033,662 47,542,313 48,876,828 55,231,438 54,948,663
12,610,875 13,748,186 14,207,197 14,963,304 16,780,474 17,361,659
11,740,744 12,261,413 12,393,218 11,818,602 12,130,254 12,007,885
866,944 822,932 827,485 872,960 915,560 1,015,328
3,293,192 3,199,815 3,342,544 3,409,343 3,041,169 3,469,121
2,182,200 2,272,510 2,375,173 2,642,097 2,842,660 2,961,787
2,842,139 2,967,115 2,975,782 3,436,325 3,853,091 4,095,309
33,536,094 35,271,971 36,121,399 37,142,631 39,563,208 40,911,089
80,297,897$ 80,305,633$ 83,663,712$ 86,019,459$ 94,794,646$ 95,859,752$
1,142,984$ 1,259,908$ 1,529,555$ 1,322,430$ 1,453,009$ 1,142,120$
6,549,929 7,410,755 8,102,352 8,683,465 8,996,046 9,627,122
913,864 846,999 960,261 1,158,207 1,289,770 1,288,452
1,685,026 2,283,007 1,578,538 3,122,178 2,751,495 2,194,336
9,137,011 6,372,735 8,244,695 10,044,077 15,252,861 9,775,184
19,428,814 18,173,404 20,415,401 24,330,357 29,743,181 24,027,214
17,729,589 17,831,225 17,550,802 19,335,443 19,505,905 21,361,972
13,230,941 13,711,557 13,515,168 12,462,387 12,937,092 12,991,764
1,001,946 928,055 918,412 971,936 956,068 962,857
3,225,591 2,711,743 3,229,348 2,857,190 2,809,702 1,254,412
1,452,435 1,942,971 2,092,567 2,316,853 2,314,892 2,508,192
2,399,090 2,625,633 2,583,257 3,119,789 3,190,775 3,348,628
1,042,195 516,242 428,416 595,141 445,464 179,086
- - - - - 904,201
40,081,787 40,267,426 40,317,970 41,658,739 42,159,898 43,511,112
59,510,601$ 58,440,830$ 60,733,371$ 65,989,096$ 71,903,079$ 67,538,326$
(27,332,989)$ (26,860,258)$ (27,126,912)$ (24,546,471)$ (25,488,257)$ (30,921,449)$
6,545,693 4,995,455 4,196,571 4,516,108 2,596,690 2,600,023
(20,787,296)$ (21,864,803)$ (22,930,341)$ (20,030,363)$ (22,891,567)$ (28,321,426)$
25,884,662$ 26,894,161$ 27,062,224$ 29,632,072$ 31,396,421$ 33,665,029$
3,536,935 3,981,938 5,052,705 1,792,896 2,779,097 3,422,898
815,530 1,891,967 2,055,396 2,089,038 2,346,423 2,408,884
- - 11,301 22,716 22,624 21,006
341,986 (96,390) 440,051 195,620 344,277 514,073
- 16,654 29,037 41,900 65,044 -
- 816,654 - - - -
696,935 133,907 (9,605,225) (2,230,966) 99,573 5,059
31,276,048 33,638,891 25,045,489 31,543,276 37,053,459 40,036,949
-$ -$ -$ -$ -$ -$
113,177 (77,848) 191,974 91,907 136,208 254,990
2,644,854 17,587 - 39,427 35,946 6,554
(696,935) (133,907) 9,605,225 2,230,966 (99,573) (5,059)
2,061,096 (194,168) 9,797,199 2,362,300 72,581 256,485
33,337,144$ 33,444,723$ 34,842,688$ 33,905,576$ 37,126,040$ 40,293,434$
3,943,059$ 6,778,633$ (2,081,423)$ 6,996,805$ 11,565,202$ 9,115,500$
8,606,789 4,801,287 13,993,770 6,878,408 2,669,271 2,856,508
12,549,848$ 11,579,920$ 11,912,347$ 13,875,213$ 14,234,473$ 11,972,008$
Fiscal Year
119
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2008 2009a 2010 2011b
General fund
Reserved 13,982$ 18,241$ 10,258$ -$
Unreserved 14,365,021 12,031,358 12,868,952 -
Nonspendable - - - 10,871
Restricted - - - 178,295
Assigned - - - 1,539,286
Unassigned - - - 11,744,764
Total general fund 14,379,003$ 12,049,599$ 12,879,210$ 13,473,216$
All other governmental funds
Reserved 8,467,918$ 15,223,353$ 9,460,834$ -$
Unreserved, reported in:
Special revenue funds 14,950,538 12,813,439 15,333,460 -
Capital projects funds 4,270,440 6,683,668 12,150,968 -
Restricted, reported in:
Special revenue funds - - - 17,178,857
Debt service funds - - - 8,068,183
Construction funds - - - 2,087,548
Assigned, reported in:
Capital projects funds - - - 8,098,935
Unassigned, reported in:
Special revenue funds - - - -
Total all other governmental funds 27,688,896$ 34,720,460$ 36,945,262$ 35,433,523$
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
120
2012 2013 2014c 2015 2016c 2017c
-$ -$ -$ -$ -$ -$
- - - - - -
413,200 13,322 240,291 529,513 27,643 13,124
880,395 185,395 757,673 417,673 927,673 961,133
1,643,077 1,559,461 1,566,329 1,547,398 1,612,240 1,739,079
11,902,462 12,573,457 11,429,444 11,825,799 14,624,755 15,656,518
14,839,134$ 14,331,635$ 13,993,737$ 14,320,383$ 17,192,311$ 18,369,854$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
13,185,962 13,040,516 9,719,309 9,405,757 12,673,995 14,453,556
9,704,408 6,246,769 12,678,291 7,134,575 11,187,468 17,000,806
2,759,463 3,318,947 6,598,832 551,132 209,510 78,702
7,159,890 8,354,268 7,046,610 13,127,881 13,109,438 15,710,621
- - - - (190,845) -
32,809,723$ 30,960,500$ 36,043,042$ 30,219,345$ 36,989,566$ 47,243,685$
.
Fiscal Year
121
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2008 2009 2010 2011
Revenues
General property taxes 22,242,276$ 23,834,274$ 25,122,113$ 24,972,166$
Tax increment collections 8,578,434 7,587,386 4,488,073 4,083,345
Franchise taxes 647,466 667,791 692,288 722,160
Lodging fees - - - -
Special assessments 2,442,490 2,703,833 6,746,186 4,502,112
License and permits 2,915,455 2,104,967 2,410,314 2,724,763
Intergovernmental 3,005,883 1,507,170 3,726,849 3,059,964
Charges for services 3,093,941 2,905,410 3,014,894 3,181,961
Fines and forfeitures 1,073,174 1,224,983 1,203,767 1,243,426
Investment income 1,185,899 387,177 474,444 601,250
Rental of property 255,607 343,616 426,517 539,091
Parkland dedication - - - -
Other revenues 126,723 160,035 413,400 156,231
Total revenues 45,567,348 43,426,642 48,718,845 45,786,469
Expenditures
General government 6,235,352 6,895,329 6,523,398 5,739,481
Public safety 13,788,797 13,692,686 14,177,387 14,668,772
Public works 6,189,594 5,911,758 5,898,023 6,000,539
Parks 3,693,595 3,688,063 3,524,950 3,633,922
Capital outlay: 14,666,907 22,997,065 13,505,827 14,235,496
Debt service
Principal 7,090,000 7,415,000 2,975,000 4,480,000
Interest and other charges 1,967,021 1,841,342 2,584,006 2,278,068
Total expenditures 53,631,266 62,441,243 49,188,591 51,036,278
Revenues over (under) expenditures (8,063,918) (19,014,601) (469,746) (5,249,809)
Other Financing Sources (Uses)
Transfers in 7,983,585 11,347,773 2,903,762 5,615,669
Transfers out (7,015,785) (10,604,748) (2,137,768) (4,921,463)
Sale of capital assets 96,825 34,592 134,329 209,773
Insurance recovery - - - -
Bonds issued 7,755,000 22,950,000 2,535,000 3,320,000
Refunding bonds issued - - 8,285,000 -
Premium on bonds issued - 64,765 898,658 108,097
Discount on bonds issued (35,848) (75,621) - -
Payment to refunding escrow - - (9,094,822) -
Total other financing sources (uses) 8,783,777 23,716,761 3,524,159 4,332,076
Net change in fund balances 719,859$ 4,702,160$ 3,054,413$ (917,733)$
Debt service as a percentage of
noncapital expenditures 22.6% 21.7% 15.4% 17.8%
Fiscal Year
122
2012 2013 2014 2015 2016 2017
25,838,422$ 26,891,756$ 26,988,493$ 29,535,270$ 31,354,023$ 33,696,550$
3,536,935 3,981,938 5,052,705 1,792,896 2,779,097 3,422,898
815,530 1,891,967 2,055,396 2,089,038 2,346,423 2,408,884
- - 11,301 22,716 22,624 21,006
4,975,641 4,884,510 4,606,010 4,132,128 5,276,194 5,330,766
3,155,351 4,150,512 4,583,183 4,907,364 5,268,519 5,403,222
2,032,966 2,509,166 3,961,509 6,093,966 5,775,114 3,687,262
3,708,482 3,667,612 4,270,720 4,414,991 4,689,389 4,917,173
1,195,054 1,109,710 1,163,907 1,195,271 1,016,817 1,135,986
341,986 (96,390) 440,051 195,314 344,344 512,448
506,276 518,862 546,874 416,522 514,955 459,099
702,100 - 757,278 800,000 1,250,000 33,460
240,841 278,607 78,775 361,425 2,599,830 761,281
47,049,584 49,788,250 54,516,202 55,956,901 63,237,329 61,790,035
6,624,573 7,351,556 7,625,826 6,337,944 6,815,725 7,065,729
14,985,068 15,859,622 16,647,821 17,537,528 18,554,507 19,233,386
6,277,506 7,018,614 10,201,335 10,578,472 10,474,008 11,524,896
3,852,260 3,915,568 1,341,884 1,416,858 1,529,384 1,695,397
13,622,443 10,690,207 19,883,144 19,912,565 16,787,575 11,053,212
6,620,000 14,531,375 4,096,375 13,276,375 5,246,375 5,496,375
2,292,394 2,270,259 1,923,647 2,375,613 2,360,827 2,359,551
54,274,244 61,637,201 61,720,032 71,435,355 61,768,401 58,428,546
(7,224,660) (11,848,951) (7,203,830) (15,478,454) 1,468,928 3,361,489
4,495,940 3,472,964 1,404,975 3,232,770 3,504,542 5,130,405
(3,799,005) (3,339,057) (11,010,200) (6,472,066) (3,404,969) (5,057,263)
94,975 61,642 70,603 78,509 65,044 84,388
- 816,654 - 167,167 - -
2,748,720 2,555,000 16,155,000 9,040,000 3,940,000 1,995,000
1,990,000 5,710,000 5,180,000 3,490,000 3,635,000 8,955,000
436,148 275,360 327,987 492,838 450,409 798,791
- (60,334) (179,891) (47,815) (16,805) (51,148)
- - - - - (3,785,000)
5,966,778 9,492,229 11,948,474 9,981,403 8,173,221 8,070,173
(1,257,882)$ (2,356,722)$ 4,744,644$ (5,497,051)$ 9,642,149$ 11,431,662$
19.4% 32.2% 13.7% 28.9% 16.2% 15.9%
Fiscal Year
123
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
City Tax City
Used Adjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
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
10,902,621 10,902,621 10,785,198 132,180 116,854 119,756 28.189% 0.00000% 3.096
Source: Hennepin County Taxpayer Services.
a Property in the City is assessed annually. Assessed value is equal to market value, although taxable value may be different, as shown.
The City receives reports from Hennepin County showing total market value, but not separated by property classification.
b This value is estimated by the City Finance Department by taking City taxes as a rate of estimated market value (rate per $1,000 of
assessed value). The property tax system in Minnesota uses a tax capacity system whereby each parcel is assigned a tax capacity
based on taxable value and class. In Minnesota, local taxes are usually expressed as a percentage of this calculated tax capacity
(see column titled "City Tax Capacity Rate"). Therefore, this rate is only theoretical and shown for comparative purposes only.
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2014
Fiscal Direct
2012
2013
2008
2009
2010
2011
2017
Year
2015
2016
124
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
19.563% 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% 11.254% 118.645%
24.348% 3.841% 28.189% 0.000% 44.087% 34.798% 0.188% 11.057% 118.131%
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.
2017
2012
2013
2008
2009
2010
2011
2014
2015
2016
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
125
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 3,011,180$ 1 2.28% 3,497,098$ 1 2.91%
Galleria Shopping Center 2,662,551 2 2.01% 1,300,806 2 1.08%
Southdale Medical Building 1,310,247 3 0.99% DNA DNA DNA
Centennial Lakes Retail 914,184 4 0.69% 926,094 3 0.77%
Southdale Office Center 913,294 5 0.69% 910,362 4 0.76%
Centennial Lakes Phase V 772,440 6 0.58% 756,518 5 0.63%
Centennial Lakes Phase IV 757,480 7 0.57% 741,842 6 0.62%
7700 France 598,664 8 0.45% DNA DNA DNA
The District 588,448 9 0.45% DNA DNA DNA
Westin Galleria 547,949 10 0.41% DNA DNA DNA
National Car - 0.00% 631,752 7 0.53%
Macy's Department Stores - 0.00% 520,174 8 0.43%
Target - 0.00% 510,186 9 0.42%
Centennial Lakes Medical Building - 0.00% 483,056 10 0.40%
Totals 12,076,437$ 9.14% 10,277,888$ 8.56%
Source: City of Edina Assessing Office
DNA: Historical data is not available
20082017
Taxpayer
126
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
22,605,669$ 22,178,719$ a 98.11%a 174,769$ 22,353,488$ 98.88%
24,153,933 23,484,137 b 97.23%b 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% (132,633) 25,851,052 98.49%
26,747,384 26,545,984 99.25% (201,738) 26,344,246 98.49%
27,454,872 27,326,092 99.53% (65,036) 27,261,056 99.29%
29,700,010 29,497,362 99.32% (94,658) 29,402,704 99.00%
31,799,123 31,383,415 98.69% 14,869 31,398,284 98.74%
33,822,369 33,645,085 99.48% - 33,645,085 99.48%
Source: Hennepin County Taxpayer Services.
a In 2008 the State of Minnesota reimbursed the City for only 50% of MVHC.
b In 2009 the State of Minnesota once again quit reimbursing the City for MVHC.
2017
Collected within the
Fiscal Year of the Levy
2011
2008
2009
2010
2015
2014
2016
Total Collections to Date
Taxes
Payable
2012
2013
127
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
10,393$ 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 3.68% 2,321
31,748 19,485 - 26,772 17 16,946 38,661 133,629 4.09% 2,580
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 133.
Business-Type Activities
Year
Fiscal
2017
2008
2009
2010
2011
2014
2015
2012
2013
2016
Governmental Activities
128
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
10,393$ 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% 551
31,748 17,001 14,747 0.14% 613
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
2012
2017
2015
2014
2013
2008
2009
2010
2011
2016
129
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2017
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 911,083,511$ 7.43% 67,695,505$
Hennepin Suburban Park District 45,784,829 10.37% 4,747,887
Hennepin Regional Rail Authority 26,942,546 10.37% 2,793,942
School Districts:
ISD No. 273 (Edina) 181,497,226 98.60% 178,956,265
ISD No. 270 (Hopkins) 140,286,562 7.62% 10,689,836
ISD No. 271 (Bloomington) 74,094,529 0.01% 7,409
ISD No. 272 (Eden Prairie) 58,290,831 1.01% 588,737
ISD No. 280 (Richfield) 21,321,981 30.97% 6,603,418
ISD No. 283 (St. Louis Park) 33,819,742 0.01% 3,382
Metro Council 12,606,580 3.80% 479,050
Total Overlapping Debt 1,505,728,337 272,565,431
City of Edina 78,020,797 100.00% 78,020,797
Total Overlapping and Direct Debt 1,583,749,134$ 350,586,228$
Ratio of debt per capita (51,804 population) 6,768$
Ratio of debt to estimated market valuation of $10,902,621,300 3.22%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
130
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Debt limit 302,385$ 301,369$ 298,494$ 282,958$ 270,767$ 263,958$ 267,351$ 291,050$ 308,890$ 323,556$
Total net debt
applicable
to limit 25,095 46,670 45,170 42,860 39,545 37,030 51,760 48,000 48,325 50,115
Legal debt
margin 277,290$ 254,699$ 253,324$ 240,098$ 231,222$ 226,928$ 215,591$ 243,050$ 260,565$ 273,441$
Total net debt
applicable to
the limit as a
percentage of
debt limit 8.30% 15.49% 15.13% 15.15% 14.60% 14.03% 19.36% 16.49% 15.64% 15.49%
Market value (after fiscal disparities)
Debt limit (3% of market value)
Debt applicable to limit:
General obligation bonds
Public project revenue bonds
Total debt applicable to limit
Legal debt margin
323,555,954
19,485,000
273,440,954$
Fiscal Year
10,785,198,454$
30,630,000
50,115,000
Legal Debt Margin Calculation for Fiscal Year 2017
131
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)
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
2017 2,496,500 - 2,496,500 905,000 633,527 1,538,527 1.62
Tax Increment Bonds
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 - - - -
2017 3,422,898 - 3,422,898 - - - -
Permanent Improvement Revolving Bonds (Special Assessment)
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
2017 4,746,414 - 4,746,414 2,105,000 745,783 2,850,783 1.66
Utility Bond
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
2017 21,360,262 16,718,288 4,641,974 5,040,000 930,123 5,970,123 0.78
Recreational Facility Bonds
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)
2017 4,724,288 6,247,649 (1,523,361) 500,000 217,958 717,958 (2.12)
Debt service requirementsFiscal
Year
132
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
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%
51,804 3,264,895 63,024 97.7% 3.08%
51,804 3,264,895 63,024 97.9% 2.83%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2016 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. 2016 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.
2017
2014
2015
Fiscal
Year
2013
2012
2011
2010
2009
2008
2016
133
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 10.62% 2,500 2 11.47%
Edina Public Schools ISD #273 1,343 2 5.46% 1,172 4 5.38%
BI Worldwide 1,000 3 4.06% DNA DNA DNA
Regis Corporation 900 4 3.66% DNA DNA DNA
City of Edina 883 5 3.59% 262 7 1.20%
Spartan Nash 450 6 1.83% DNA DNA DNA
Edina Realty 400 7 1.63% 210 9 0.96%
International Dairy Queen Inc. 400 8 1.63% 300 6 1.38%
Lund Food Holdings, Inc 400 9 1.63% DNA DNA DNA
FilmTec Corporation 375 10 1.52% DNA DNA DNA
Jerry's Enterprises, Inc. - 0.00% 4,500 1 20.64%
Macy's (Marshall Field's or Dayton's) - 0.00% 1,200 3 5.50%
Nash Finch Co. - 0.00% 350 5 1.61%
JC Penny Co. - 0.00% 250 8 1.15%
Con Agra Foods - 0.00% 196 10 0.90%
Totals 8,764 35.61% 10,940 50.17%
Sources:
2017 data from ReferenceUSA, written and telephone survey (May 2017) done by Ehlers,
and the Minnesota Department of Employment and Economic Development.
2008 data from previous CAFR.
DNA: Historical data is not available
20082017
Employer
134
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 b 2013 b 2014 b 2015 2016 2017
Administration
General Fund 9.25 9.25 9.25 9.25 6.85 5.85 4.85 4.85 5.00 5.00
HRA Fund - - - - - - 1.00 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 3.00 3.00 3.50 4.65 5.15 6.15 6.15 6.00 6.00
Central Services 3.00 3.00 3.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Community Development
General Fund 10.75 10.85 10.85 10.85 10.85 10.85 12.00 12.00 12.00 12.00
Engineering
General Fund 8.50 8.50 8.50 8.50 10.50 12.00 12.00 13.00 14.00 14.00
Finance
General Fund 5.50 5.50 5.50 5.25 5.25 5.25 6.00 6.00 5.00 5.00
Utilities Fund 1.75 2.75 2.75 2.00 2.00 1.00 1.00 1.00 1.00 1.00
Liquor Fund 0.75 0.75 0.75 0.75 0.75 0.75 - - - -
Fire Protection
General Fund 40.50 40.50 40.50 39.50 39.75 42.75 42.85 43.85 45.90 45.90
Utilities Fund 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 5.00
Parks & Recreation
General Fund 6.80 6.80 6.80 6.80 6.80 8.00 7.00 7.00 7.00 7.00
Aquatic Center 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.60 0.60
Golf Course 13.00 13.00 13.00 11.00 12.00 12.00 12.00 12.00 8.05 8.05
Arena 6.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.85 4.85
Sports Dome - - - - - - - - 0.15 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 5.80 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 74.65 73.65 71.15 71.65 70.65 72.50 70.50 72.55 72.55
Utilities Fund 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.45 0.45
Public Works
General Fund 48.40 47.40 47.40 47.20 48.20 46.40 43.35 43.35 43.45 43.45
Construction Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.10 1.10
Utilities Fund 13.25 15.25 15.25 14.45 13.95 13.75 15.20 15.20 16.85 16.85
Central Services 8.50 8.50 8.50 8.50 8.50 8.50 11.00 11.00 10.25 10.25
Other 1.00 1.00 1.00 - - - - - - -
Total 278.00 281.00 280.00 274.00 278.00 281.00 285.00 285.00 287.00 287.00
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
135
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Government
Total City employees 918 885 869 892 989 1,040 1,093 1,077 1,155 1,067
Votes cast a 31,512 2,733 25,463 7,957 31,841 3,480 24,049 9,370 31,986 11,440
Public Works
Asphalt placed (tons) 7,500 9,500 7,643 8,500 9,000 9,273 8,383 8,888 9,298 11,176
Concrete (cu. yds.) 480 640 503 558 667 560 396 670 897 708
Public Safety
Crimes reported 2,025 1,985 1,890 1,590 1,628 1,594 1,571 2,015 2,143 N/A
Fire calls 913 852 910 960 858 893 926 1,251 1,276 1,220
Medical calls 3,516 3,496 3,599 3,652 3,946 3,803 3,982 3,818 4,063 4,508
Central Services
Vehicle fixes 2,967 2,539 2,431 2,331 2,546 3,493 3,277 2,923 2,721 2,478
Utilities
Daily consumption b 7,376 7,596 6,790 6,909 7,613 6,652 6,489 6,308 6,047 5,950
Aquatic Center
Attendance 110,000 64,836 86,654 77,696 139,909 91,340 92,200 128,523 108,609 89,318
Golf Course
Total rounds played 112,663 117,819 101,314 95,771 96,496 79,529 85,231 66,483 61,256 23,241
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
136
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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 19 19 19 18 18 18 18 18 18 18
Watermain miles 199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles 186 186 186 186 186 186 186 186 186 186
Sewer connections 14,851 13,933 13,933 13,933 13,979 13,979 13,979 13,979 13,979 13,979
Arena
Ice sheets 3 3 3 3 3 3 3 4 4 4
Source: Various City departments
Fiscal Year
Function
137
CITY OF EDINA
4801 West 50th Street
Edina, Minnesota 55424
EdinaMN.gov
952-826-0366