HomeMy WebLinkAbout2018 Comprehensive Annual Financial ReportCOMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
CITY OF EDINA, MINNESOTA
For the Fiscal Year Ended December 31, 2018
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2018
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 Changes in the City's Total OPEB
Liability and Related Ratios 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
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.
Major Governmental Fund - Debt Service
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 98
Major Governmental Fund - Construction Capital Projects
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 4, 2019
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, 2018.
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, 2018. 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 52,497. 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 previous fiscal year.
The annual budget serves as the foundation for the City’s financial planning and control. The budget is
prepared by fund, function (e.g. public safety), and department (e.g. police). Department heads may
use resources within a department as they see fit. The City Manager may authorize transfers of
budgeted amounts between departments.
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 $16,812,851 unassigned fund balance in the general fund. This
amount is $2,708,564 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, 2017. 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, 2017
Executive Director/CEO
4
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2018
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
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, 2018, 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)
C E R T I F I E D
A C C O U N T A N T S
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
Jaclyn M. Huegel, CPA
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
Standard Letterhead-r2.qxp_167639 Letterhead-RV1 9/7/18 6:34 PM Page 1
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, 2018, and the
respective changes in financial position and, where applicable, cash flows thereof, for the year then
ended, in accordance with accounting principles generally accepted in the United States of America.
EMPHASIS OF MATTER
As described in Note 1 of the notes to basic financial statements, the City has implemented Governmental
Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, during the year ended December 31, 2018. Our opinion is
not modified with respect to this matter
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the required supplementary information (RSI), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the GASB, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the RSI in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual fund
financial statements and schedules, supplementary financial information, and statistical section, as listed
in the table of contents, are presented for purposes of additional analysis and are not required parts of the
basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund financial statements and schedules are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
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 4, 2019 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 4, 2019
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, 2018. 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 $274,055,219 (net position). Of
this amount, $58,563,257 (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 $23,223,958 from current year operations. Of that total,
$5,912,757 is due to licenses and permits revenues from continued residential and commercial
redevelopment of the City. In addition, $5,032,815 is the result of a gain on the sale of land for
mixed use redevelopment. Also, $5,449,120 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 $62,263,257, a decrease of $3,350,282 from the prior year. The decrease can
primarily 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 $16,812,851
or 41% of total general fund expenditures.
The City’s total bonded debt decreased by $16,665,369 during the current fiscal year, from
$128,681,845 to $112,016,476. The City issued new debt during the year consisting of $5,515,000
general obligation bonds to finance various street and utility infrastructure improvement projects,
and redeemed $22,180,369 in outstanding debt. Of the redeemed debt, $11,120,000 was refunded
in February 2018 from bonds that were issued in 2017.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector
business.
The statement of net position presents information on all of the City’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference between them reported as
net position. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial position of the City is improving or deteriorating.
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.
Management’s Discussion and Analysis (Continued)
13
Data from the other enterprise funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major enterprise funds are provided in the form of
combining statements elsewhere in this report.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail.
Internal service funds. Internal service funds are used as an accounting device to accumulate
and allocate costs internally among the City’s various functions. The City uses its internal
service fund to account for insurance, safety and prevention measures, and risk management
activities. 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 and individual fund financial statements and schedules referred to
earlier in connection with non-major governmental and enterprise funds are presented immediately
following the required supplementary information. Supplementary financial information and the
statistical section are the final two items presented.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $274,055,219 at the close of the most recent fiscal year.
The largest portion of the City's net position ($189,114,040 or 69%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2018 2017 2018 2017 2018 2017
Assets:
Current and
other assets 94,235,554$ 95,973,528$ 39,131,188$ 38,768,461$ 133,366,742$ 134,741,989$
Capital assets 171,961,244 164,516,480 131,270,232 131,969,914 303,231,476 296,486,394
Total assets 266,196,798$ 260,490,008$ 170,401,420$ 170,738,375$ 436,598,218$ 431,228,383$
Deferred outflows of resources:
OPEB plan deferments 202,183$ -$ 14,635$ -$ 216,818$ -$
Pension plan deferments 14,052,021 18,890,117 865,438 1,381,652 14,917,459 20,271,769
Total deferred outlfows
of resources 14,254,204$ 18,890,117$ 880,073$ 1,381,652$ 15,134,277$ 20,271,769$
Liabilities:
Long-term liabilities
outstanding 83,842,411$ 90,975,197$ 49,979,000$ 54,320,014$ 133,821,411$ 145,295,211$
Other liabilities 13,420,763 22,182,641 9,449,610 10,726,721 22,870,373 32,909,362
Total liabilities 97,263,174$ 113,157,838$ 59,428,610$ 65,046,735$ 156,691,784$ 178,204,573$
Deferred inflows of resources:
Pension plan deferments 19,759,709$ 20,819,966$ 1,225,783$ 952,650$ 20,985,492$ 21,772,616$
Net position:
Net investment in
capital assets 107,133,225$ 96,149,011$ 81,980,815$ 82,338,560$ 189,114,040$ 178,487,571$
Restricted 25,017,586 22,840,869 1,360,336 1,338,276 26,377,922 24,179,145
Unrestricted 31,277,308 26,412,441 27,285,949 22,443,806 58,563,257 48,856,247
Total net position 163,428,119$ 145,402,321$ 110,627,100$ 106,120,642$ 274,055,219$ 251,522,963$
Governmental Activities Business-Type Activities Totals
A portion of the City’s net position ($26,377,922) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($58,563,257)
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 $9,707,010 in unrestricted net position, largely due to positive operating
results in the Utility and General Funds and a large new assessment for the Birchcrest A neighborhood
reconstruction project.
The decrease in deferred outflows of resources and long-term liabilities relates to the changes in the
City’s share of State pension plan amounts while the decrease in other liabilities is the result of
payments on refunding bonds previously discussed.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $23,223,958 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues:
Charges for services 13,577,083$ 12,057,694$ 44,426,345$ 42,427,825$ 58,003,428$ 54,485,519$
Operating grants and
contributions 4,028,247 2,194,336 545,682 179,086 4,573,929 2,373,422
Capital grants and
contributions 6,695,172 9,775,184 - 904,201 6,695,172 10,679,385
General revenues:
Property taxes 35,616,432 33,665,029 - - 35,616,432 33,665,029
Other taxes 7,582,447 5,852,788 - - 7,582,447 5,852,788
Gain on disposal
of assets 5,032,815 - - 6,554 5,032,815 6,554
Unrestricted investment
earnings 901,405 514,073 481,754 254,990 1,383,159 769,063
Total revenues 73,433,601 64,059,104 45,453,781 43,772,656 118,887,382 107,831,760
Expenses:
General government 10,964,266 9,164,272 - - 10,964,266 9,164,272
Public safety 20,971,184 21,815,101 - - 20,971,184 21,815,101
Public works 14,170,463 17,750,505 - - 14,170,463 17,750,505
Parks 7,235,405 4,222,431 - - 7,235,405 4,222,431
Interest on long-term debt 1,726,901 1,996,354 - - 1,726,901 1,996,354
Utilities - - 18,045,516 17,361,659 18,045,516 17,361,659
Liquor - - 11,995,159 12,007,885 11,995,159 12,007,885
Aquatic center - - 996,671 1,015,328 996,671 1,015,328
Golf course - - 2,464,563 3,469,121 2,464,563 3,469,121
Arena - - 2,996,844 2,961,787 2,996,844 2,961,787
Community activity
centers - - 4,096,452 4,095,309 4,096,452 4,095,309
Total expenses 55,068,219 54,948,663 40,595,205 40,911,089 95,663,424 95,859,752
Increase in net position
before transfers 18,365,382 9,110,441 4,858,576 2,861,567 23,223,958 11,972,008
Transfers 305,428 5,059 (305,428) (5,059) - -
Change in net position 18,670,810 9,115,500 4,553,148 2,856,508 23,223,958 11,972,008
Net position - January 1
as previously reported 145,402,321 136,286,821 106,120,642 103,264,134 251,522,963 239,550,955
Change in accounting principle (645,012) - (46,690) - (691,702) -
Net position - January 1
as restated 144,757,309 136,286,821 106,073,952 103,264,134 250,831,261 239,550,955
Net position - December 31 163,428,119$ 145,402,321$ 110,627,100$ 106,120,642$ 274,055,219$ 251,522,963$
Governmental Activities Business-type Activities Totals
The City reported a change in accounting principle for the implementation of Governmental Accounting
Standards Board (GASB) statement number 75 on other post-employment benefits in 2018.
The increase in parks and decrease in public works expenses was due to a reorganization of the park
maintenance division, moving it from parks to public works in the current year.
The decline in golf course expenses is the result of the new championship 18-hole course being under
construction for all of 2018.
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities increased the City's net position by $18,670,810, accounting for 80% of the
total growth in net position. Key elements of the increase are as follows.
Charges for services increased by $1,519,389, or 13% in 2018. 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 $1,951,403 as the result of an increased general operating levy
that provides funding to continue existing service levels.
Other taxes increased by $1,729,659 due to an increase in tax increment collections from the
Southdale 2 tax increment financing district.
Investment earnings increased by $387,332, or 75% in 2018 due to increased interest rates.
Gain on disposal of assets increased $5,032,815 due to the sale of land in the 50th and France
2 TIF district that is being redeveloped for mixed use.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services19%
Operating grants and contributions
5%
Capital grants and contributions
9%Property taxes49%
Other taxes
10%
Other
8%
Revenues by Source - Governmental Activities
-
5
10
15
20
25
General
government
Public safety Public works Parks Interest on
long-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 $4,553,148, accounting for 20% of the City's growth
in net position. Key elements of the current year increase are as follows:
The utility fund had income before contributions and transfers of $5,449,120 for 2018. 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 contributions and transfers of $1,431,841 for 2018. The
majority of the additional equity is used to subsidize operations at other enterprise facilities.
The golf course fund had a loss before contributions and transfers of $993,310 for 2018. 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
98%
Capital grants
and
contributions
1%
Unrestricted
investment
earnings
1%
Revenues by Source - Business-type Activities
-
5
10
15
20
25
Utilities Liquor Aquaticcenter Golf course Arena Communityactivity
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 $62,263,257, a decrease of $3,350,282 in comparison with the prior year. Approximately
27% of this total amount ($16,812,851) constitutes unassigned fund balance. The remainder of the fund
balance is 1) restricted by external creditors, grantors, laws or regulations ($23,618,322), or 2) assigned
by internal constraints ($21,832,084).
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 $16,812,851. 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 $1,509,871 during the current fiscal year. Key
factors in this increase are as follows:
Total general fund revenues were $2,909,270 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 9.6% in the
current fiscal year after a 2.5% and 7.6% increase in 2017 and 2016, respectively.
Total general fund expenditures were $602,394 under budget. Much of this savings occurred
in the public works and engineering departments as a result of less being spent on contractual
services than budgeted. $200,000 was budgeted for seal coating in 2018 and was not spent
due to public works receiving no bids for the work; this budgeted money has been assigned to
be spent in 2019.
The liquor fund transferred $50,000 of profits to the general fund, as planned in the 2018
budget.
Transfers out of the general fund totaled $2,039,771 related to the 2017 unassigned fund
balance transferred to fund various construction projects.
The Housing and Redevelopment Authority fund balance decreased by $351,451 in the current fiscal
year due to the expansion of the north parking ramp in the 50th and France 2 TIF district. The spending
on this project was offset by higher than anticipated investment income and tax increment collections
in the Southdale 2 district.
The debt service fund has a total fund balance of $7,871,858, all of which is restricted for the payment
of debt service. The net decrease in fund balance during the current year in the debt service fund was
$9,128,948. Fund balance decreased 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 $4,015,722 in 2018 due to transfers in of $2,314,771;
$2,039,771 of the transfer is from the 2017 general fund surplus. In addition, new debt was issued in
2018 to help finance various street improvement projects and property tax revenue increased as
budgeted. Lastly; of the 2016 and 2017 general fund surplus transfers, $3,417,171 remains to be spent.
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 $23,758,425. The total
growth in net position from current year operations was $5,255,861. Operating revenues in the utilities
fund increased by 6.5% while expenses increased by 4.2% in 2018. The revenue increase was due to
an increase in the water, sewer and storm rates along with increased water consumption. Expenses
increased as a result of higher depreciation expenses related to infrastructure projects completed in
recent years, along with increased fees set by the Metropolitan Council for sewer service. The City
invested $5,326,751 in utility fund capital assets during 2018.
Unrestricted net position of the liquor fund at the end of the year amounted to $1,643,831. Total net
position increased by $632,747 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 $800,000 to other funds during 2018.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $488,397.
Aquatic center revenues increased by 3.6% from 2017 due to fee increases and improved weather.
Expenses decreased by 2.7% from 2017 due to numerous assets becoming fully depreciated in 2017,
resulting in a decrease in depreciation expense.
Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of
($954,195) a decrease of $692,922 from the prior year. The 27-hole regulation course closed in October
2016 and was closed for all of 2017 and 2018 for renovations. The new course is set to open in 2019
and increases to net position are expected.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($3,129), an
improvement of $268,361 from the prior year. Revenues increased by $118,455 due to increased
revenues related to ice time rental while expenses increased by $65,783 due to unforeseen repairs and
maintenance expenses.
General Fund Budgetary Highlights
During the year, there was a $2,039,771 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 $2,909,270 more than budget, as the continued commercial and
residential redevelopment of the City increased our licenses and permits, which exceeded budget by
$1,484,237. Intergovernmental revenue exceeded budget by $428,446 as the result of municipal state
aid (MSA) received for maintenance completed on MSA streets. In addition, other revenue exceeded
budget by $547,463 due unexpected donations received.
During the year, expenditures were $602,394 under budget. Much of this savings occurred in the public
works and engineering departments as a result of less being spent on contractual services than
budgeted as previously noted. The communications and technology, finance, police, fire, and parks
departments were also under budget, contributing to the positive results.
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, 2018, amounted to $303,231,476 (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 2.3% (a 4.5% increase for governmental activities and a 0.5% decrease for
business-type activities).
Major capital asset events during the current fiscal year included the following:
The City continued construction on the new 18-hole championship golf course; construction in
progress as of the close of the fiscal year reached $6,691,548.
A variety of street construction, sidewalk and park projects; construction in progress as of the
close of the fiscal year reached $16,039,275.
A variety of utility infrastructure improvements, including watermain, sanitary and storm sewer,
construction in progress as of the close of the fiscal year reached $6,755,794 in the utility fund.
The City completed the Birchcrest A and Parklawn neighborhoods utility and street
reconstruction projects; total construction cost was $7,280,662.
City of Edina’s Capital Assets
(Net of Depreciation)
2018 2017 2018 2017 2018 2017
Land and land
improvements 27,745,212$ 29,193,198$ 4,717,671$ 5,092,477$ 32,462,883$ 34,285,675$
Easements 253,000 253,000 35,600 35,600 288,600 288,600
Buildings and structures 38,473,420 40,198,991 20,495,352 21,940,265 58,968,772 62,139,256
Machinery and equipment 6,109,270 6,018,012 6,085,782 6,507,805 12,195,052 12,525,817
Infrastructure 73,334,806 71,232,508 86,488,485 86,637,326 159,823,291 157,869,834
Parks 10,006,261 10,745,996 - - 10,006,261 10,745,996
Construction in progress 16,039,275 6,874,775 13,447,342 11,756,441 29,486,617 18,631,216
Total 171,961,244$ 164,516,480$ 131,270,232$ 131,969,914$ 303,231,476$ 296,486,394$
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 $112,016,476, a decrease of $16,665,369 from 2017. This decrease resulted from
$5,515,000 in new debt, offset by payment of previously scheduled principal payments which included
$11,120,000 in refunded debt that was redeemed in February 2018.
$19,155,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount decreased from 2017 due to regularly scheduled principal
payments, including refunding of the 2009A bond.
$25,540,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s street
reconstruction program. This amount decreased from 2017 due to regularly scheduled principal
payments offset by newly issued debt of $2,210,000.
Also outstanding is $18,440,000 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 2018 due to regularly scheduled principal payments.
Management’s Discussion and Analysis (Continued)
21
There is a total of $48,868,000 in revenue bonds for improvements to the enterprise funds. This amount
decreased $3,872,000 during the year due to $3,305,000 in issued debt offset by $7,177,000 in
regularly scheduled principal payments, including refunding of the 2009C bond. The issued debt is
being used to finance various utility infrastructure improvement projects.
City of Edina’s Outstanding Debt
2018 2017 2018 2017 2018 2017
General obligation bonds 19,155,000$ 30,630,000$ -$ -$ 19,155,000$ 30,630,000$
Public improvement bonds 25,540,000 25,810,000 - - 25,540,000 25,810,000
Public project revenue bonds 18,440,000 19,485,000 - - 18,440,000 19,485,000
Edina emerald energy program bonds 13,476 16,845 - - 13,476 16,845
Revenue bonds - - 48,868,000 52,740,000 48,868,000 52,740,000
Total 63,148,476$ 75,941,845$ 48,868,000$ 52,740,000$ 112,016,476$ 128,681,845$
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 $346,425,592. Only $37,595,000 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 2018 was 2.3%, 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 decreased for several years from 2009-2012 and are back on the rise in 2013-
2018. Estimated market value of real estate increased 6.1% for taxes payable in 2019.
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
The City collects property taxes based on tax capacity, which roughly equals estimated market value
multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are set
by state statute. Tax capacity for real estate increased 6.6% for taxes payable in 2019, and remained
positive for the sixth consecutive year.
All of these factors above were considered in preparing the City’s budget for the 2019 fiscal year. The
City’s adopted 2019 budget includes a property tax levy of $37,431,021 for all funds, an increase of
4.6% from the 2018 levy, with the increase being attributed to increased levies for the City’s equipment
replacement expenditures, HRA operating expenditures, and general operating levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual Financial
Report can also be found on the internet at www.edinamn.gov.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2018
Governmental Business-type
Activities Activities Total
Assets:
Current assets:
Cash and investments 63,495,774$ 28,290,361$ 91,786,135$
Restricted cash and investments 2,456,844 2,596,613 5,053,457
Accrued interest 203,272 94,047 297,319
Accounts receivable, net 1,555,484 5,512,433 7,067,917
Special assessments receivable 23,396,087 297,460 23,693,547
Due from other governments 1,060,434 11,465 1,071,899
Prepaid items 297,306 493,157 790,463
Inventory - 1,835,652 1,835,652
Total current assets 92,465,201 39,131,188 131,596,389
Noncurrent assets:
Investment in joint powers agreement 1,770,353 - 1,770,353
Nondepreciable capital assets 37,513,950 13,768,283 51,282,233
Depreciable capital assets (net) 134,447,294 117,501,949 251,949,243
Total noncurrent assets 173,731,597 131,270,232 305,001,829
Deferred outflows of resources:
OPEB plan deferments 202,183 14,635 216,818
Defined benefit pension plans 14,052,021 865,438 14,917,459
Total deferred outflows of resources 14,254,204 880,073 15,134,277
Total assets and deferred
outflows of resources 280,451,002 171,281,493 451,732,495
Liabilities:
Current liabilities:
Accounts payable 1,865,571 957,360 2,822,931
Salaries payable 887,934 195,706 1,083,640
Accrued interest payable 818,477 640,360 1,458,837
Contracts payable 916,035 421,670 1,337,705
Due to other governments 18,129 189,863 207,992
Deposits payable 1,386,312 - 1,386,312
Unearned revenue 118,917 218,465 337,382
Compensated absences payable 1,644,388 292,186 1,936,574
Bonds payable 5,765,000 6,534,000 12,299,000
Total current liabilities 13,420,763 9,449,610 22,870,373
Noncurrent liabilities:
Total OPEB liability 3,209,494 300,381 3,509,875
Net pension liability 18,954,020 4,309,980 23,264,000
Compensated absences payable 2,466,581 438,279 2,904,860
Bonds payable, net 59,212,316 44,930,360 104,142,676
Total noncurrent liabilities 83,842,411 49,979,000 133,821,411
Deferred inflows of resources:
Defined benefit pension plans 19,759,709 1,225,783 20,985,492
Total liabilities and deferred
inflows of resources 117,022,883 60,654,393 177,677,276
Net position:
Net investment in capital assets 107,133,225 81,980,815 189,114,040
Restricted for tax increments 11,034,285 - 11,034,285
Restricted for affordable housing 2,061,460 - 2,061,460
Restricted for debt service 9,271,122 1,360,336 10,631,458
Restricted for pedestrian and cyclist improvements 387,202 - 387,202
Restricted for energy efficiency projects 30,072 - 30,072
Restricted for parkland dedication 961,133 - 961,133
Restricted for police special revenue 645,936 - 645,936
Restricted for braemar golf donations 134,925 - 134,925
Restricted for arts and culture donations 31,137 - 31,137
Restricted for conservation and sustainability initiatives 460,314 - 460,314
Unrestricted 31,277,308 27,285,949 58,563,257
Total net position 163,428,119$ 110,627,100$ 274,055,219$
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, 2018
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental activities:
General government 10,964,266$ 2,395,535$ 1,877,677$ -$
Public safety 20,971,184 9,978,816 1,334,734 -
Public works 14,170,463 325,485 493,321 6,634,206
Parks 7,235,405 877,247 322,515 60,966
Interest on long-term debt 1,726,901 - - -
Total government activities 55,068,219 13,577,083 4,028,247 6,695,172
Business-type activities:
Utilities 18,045,516 22,697,468 473,990 -
Liquor 11,995,159 13,401,754 - -
Aquatic center 996,671 997,727 - -
Golf course 2,464,563 1,396,173 37,380 -
Arena 2,996,844 2,629,945 - -
Community activity centers 4,096,452 3,303,278 34,312 -
Total business-type activities 40,595,205 44,426,345 545,682 -
Total primary government 95,663,424$ 58,003,428$ 4,573,929$ 6,695,172$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
Governmental Business-type
Activities Activities Total
(6,691,054)$ -$ (6,691,054)$
(9,657,634) - (9,657,634)
(6,717,451) - (6,717,451)
(5,974,677) - (5,974,677)
(1,726,901) - (1,726,901)
(30,767,717) - (30,767,717)
- 5,125,942 5,125,942
- 1,406,595 1,406,595
- 1,056 1,056
- (1,031,010) (1,031,010)
- (366,899) (366,899)
- (758,862) (758,862)
- 4,376,822 4,376,822
(30,767,717) 4,376,822 (26,390,895)
General revenues:
Property taxes 35,616,432 - 35,616,432
Tax increment collections 4,997,706 - 4,997,706
Franchise taxes 2,559,443 - 2,559,443
Lodging taxes 25,298 - 25,298
Unrestricted investment earnings 901,405 481,754 1,383,159
Gain on disposal of capital assets 5,032,815 - 5,032,815
Transfers - capital assets (57,550) 57,550 -
Transfers - utility contributions 37,978 (37,978) -
Transfers - internal activities 325,000 (325,000) -
Total general revenues and transfers 49,438,527 176,326 49,614,853
Change in net position 18,670,810 4,553,148 23,223,958
Net position - beginning as previously reported 145,402,321 106,120,642 251,522,963
Change in accounting principle (645,012) (46,690) (691,702)
Net position - beginning as restated 144,757,309 106,073,952 250,831,261
Net position - ending 163,428,119$ 110,627,100$ 274,055,219$
Net (Expense) Revenue and
Changes in Net Position
25
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2018
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Assets
Cash and Investments 22,174,483$ 11,187,685$ 7,696,887$ 20,272,691$ 1,250,472$ 62,582,218$
Restricted cash and
investments - 2,307,547 149,297 - - 2,456,844
Accrued interest 68,791 58,507 - 71,341 1,904 200,543
Accounts receivable 500,275 16,161 - 265,415 443,191 1,225,042
Special assessments
receivable - - 2,367,038 21,029,049 - 23,396,087
Due from other governments 504,727 881 50,787 446,518 57,521 1,060,434
Total assets 23,248,276$ 13,570,781$ 10,264,009$ 42,085,014$ 1,753,088$ 90,921,168$
Liabilities
Accounts payable 823,076$ 151,828$ -$ 744,818$ 30,371$ 1,750,093$
Salaries payable 875,457 3,606 - 3,314 5,557 887,934
Contracts payable - 319,555 - 569,014 27,466 916,035
Due to other governments 16,169 - - - - 16,169
Deposits payable 1,386,312 - - - - 1,386,312
Unearned revenue 118,917 - - - - 118,917
Total liabilities 3,219,931 474,989 - 1,317,146 63,394 5,075,460
Deferred inflows of resources
Unavailable revenue - taxes 148,620 47 25,113 12,476 108 186,364
Unavailable revenue -
special assessments - - 2,367,038 21,029,049 - 23,396,087
Total deferred inflows of
resources 148,620 47 2,392,151 21,041,525 108 23,582,451
Fund balance:
Restricted 961,133 13,095,745 7,871,858 - 1,689,586 23,618,322
Assigned 2,105,741 - - 19,726,343 - 21,832,084
Unassigned 16,812,851 - - - - 16,812,851
Total fund balance 19,879,725 13,095,745 7,871,858 19,726,343 1,689,586 62,263,257
Total liabilities, deferred
inflows of resources,
and fund balances 23,248,276$ 13,570,781$ 10,264,009$ 42,085,014$ 1,753,088$ 90,921,168$
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, 2018
Total fund balances - governmental funds 62,263,257$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Cost of capital assets 308,111,737
Accumulated depreciation (136,150,493)
Bonds payable (63,148,476)
Premium on bonds (2,214,801)
Discount on bonds 385,961
Compensated absences payable (4,110,969)
Total OPEB liability (3,209,494)
Net pension liability (18,954,020)
(818,477)
1,770,353
Deferred outflows - OPEB plan deferments 202,183
Deferred outflows - pension plans 14,052,021
Deferred inflows - pension plans (19,759,709)
Deferred inflows - property taxes 186,364
Deferred inflows - special assessments 23,396,087
1,426,595
Total net position - governmental activities 163,428,119$
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, 2018
Housing & Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
Revenues:
General property taxes 28,367,096$ 124,493$ 4,551,002$ 2,551,292$ 20,000$ 35,613,883$
Tax increment collections - 4,997,706 - - - 4,997,706
Franchise taxes 845,178 - - 102,130 1,612,135 2,559,443
Lodging tax 25,298 - - - - 25,298
Special assessments - - 198,661 4,548,544 - 4,747,205
License and permits 5,836,167 - - 76,590 - 5,912,757
Intergovernmental 1,737,423 - - 3,088,096 299,054 5,124,573
Charges for services 4,686,446 45,200 - 166,902 - 4,898,548
Fines and forfeitures 1,042,091 - - - 80,335 1,122,426
Investment income 298,135 253,744 11,396 318,350 7,925 889,550
Rental of property 632,011 - - - - 632,011
Other revenues 555,463 - - 209,699 225,115 990,277
Total revenues 44,025,308 5,421,143 4,761,059 11,061,603 2,244,564 67,513,677
Expenditures:
Current:
General government 7,159,873 931,589 - 249,773 289,055 8,630,290
Public safety 20,204,391 - - 11,276 107,409 20,323,076
Public works 8,016,635 - - 465,569 200,724 8,682,928
Parks 5,182,745 - - 7,561 12,656 5,202,962
Capital outlay:
General government - 10,892,125 - 2,001,369 - 12,893,494
Public safety - - - 810,753 23,067 833,820
Public works - - - 4,319,380 914,891 5,234,271
Parks - - - 699,013 92,238 791,251
Debt service:
Bond principal - - 5,523,369 - - 5,523,369
Interest and fiscal charges - - 2,099,594 - - 2,099,594
Total expenditures 40,563,644 11,823,714 7,622,963 8,564,694 1,640,040 70,215,055
Revenues over
(under) expenditures 3,461,664 (6,402,571) (2,861,904) 2,496,909 604,524 (2,701,378)
Other financing sources (uses):
Utility contribution from other funds 37,978 - - - - 37,978
Transfers in 50,000 - 3,100,000 2,314,771 - 5,464,771
Transfers out (2,039,771) - - (3,100,000) - (5,139,771)
Sale of capital assets - 6,051,120 - 150,510 - 6,201,630
Bonds issued - - 112,956 2,097,044 - 2,210,000
Refunded bonds paid from escrow - - (9,480,000) - - (9,480,000)
Premium on bonds issued - - - 74,787 - 74,787
Discount on bonds issued - - - (18,299) - (18,299)
Total other financing
sources (uses) (1,951,793) 6,051,120 (6,267,044) 1,518,813 - (648,904)
Net increase (decrease)
in fund balance 1,509,871 (351,451) (9,128,948) 4,015,722 604,524 (3,350,282)
Fund balance - January 1 18,369,854 13,447,196 17,000,806 15,710,621 1,085,062 65,613,539
Fund balance - December 31 19,879,725$ 13,095,745$ 7,871,858$ 19,726,343$ 1,689,586$ 62,263,257$
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, 2018
Total net change in fund balances - governmental funds (3,350,282)$
Amounts reported for governmental activities in the Statement of Activities are different because:
Capital outlays 18,068,055
Contributed assets (57,550)
Depreciation expense (9,396,926)
(1,168,815)
170,398
(2,210,000)
15,003,369
66,093
250,112
Net pension liability 4,382,829
Total OPEB liability (318,388)
Compensated absences payable 64,257
Deferred outflows - OPEB plan deferrments 68,504
Deferred outflows - pension plans (4,838,096)
Deferred inflows - pension plans 1,060,257
876,993
Change in net position - governmental activities 18,670,810$
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, 2018
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 19,797,429$ 1,831,723$ 1,858,955$ 315,420$ 455,836$ 4,030,998$ 28,290,361$ 913,556$
Restricted cash and investments 1,810,623 - - 785,990 - - 2,596,613 -
Interest receivable 63,659 5,821 6,919 3,068 - 14,580 94,047 2,729
Accounts receivable, net 5,219,714 12,297 30 2,220 249,914 28,258 5,512,433 330,442
Special assessments receivable 297,460 - - - - - 297,460 -
Due from other governments 11,465 - - - - - 11,465 -
Prepaid expenses 492,321 - - 836 - - 493,157 297,306
Inventory 16,286 1,744,583 - 67,614 - 7,169 1,835,652 -
Total current assets 27,708,957 3,594,424 1,865,904 1,175,148 705,750 4,081,005 39,131,188 1,544,033
Noncurrent assets:
Net capital assets 97,933,487 1,494,863 2,113,173 12,445,264 8,649,035 8,634,410 131,270,232 -
Deferred outlflows of resources:
OPEB plan deferments 2,710 4,337 - 2,710 1,626 3,252 14,635 -
Defined benefit pension plans 208,899 208,899 - 119,371 89,528 238,741 865,438 -
Total deferred outlows of resources:211,609 213,236 - 122,081 91,154 241,993 880,073 -
Total assets and deferred
outflows of resources 125,854,053 5,302,523 3,979,077 13,742,493 9,445,939 12,957,408 171,281,493 1,544,033
Liabilities:
Current liabilities:
Accounts payable 299,048 305,984 4,416 184,620 70,810 92,482 957,360 115,478
Salaries payable 45,020 45,589 - 27,609 27,702 49,786 195,706 -
Accrued interest payable 455,904 - 12,667 134,816 36,973 - 640,360 -
Contracts payable 178,185 14,212 - 229,273 - - 421,670 -
Due to other governments 9,940 148,885 88 5,155 7,358 18,437 189,863 1,960
Unearned revenue - 14,268 - 112,877 8,371 82,949 218,465 -
Compensated absences payable 53,222 98,929 - 68,320 17,100 54,615 292,186 -
Bonds payable - current 5,685,000 - 70,000 525,000 254,000 - 6,534,000 -
Total current liabilities 6,726,319 627,867 87,171 1,287,670 422,314 298,269 9,449,610 117,438
Noncurrent liabilities:
Total OPEB liability 72,331 65,561 - 66,005 33,404 63,080 300,381 -
Net pension liability 1,040,340 1,040,340 - 594,480 445,860 1,188,960 4,309,980 -
Compensated absences payable 79,834 148,394 - 102,479 25,650 81,922 438,279 -
Bonds payable, net of
unamortized discounts and premiums 31,083,051 - 774,534 9,433,650 3,639,125 - 44,930,360 -
Total noncurrent liabilities 32,275,556 1,254,295 774,534 10,196,614 4,144,039 1,333,962 49,979,000 -
Deferred inflows of resources:
Defined benefit pension plans 295,879 295,879 - 169,073 126,805 338,147 1,225,783 -
Total liabilities and deferred
inflows of resources 39,297,754 2,178,041 861,705 11,653,357 4,693,158 1,970,378 60,654,393 117,438
Net position:
Net investment in capital assets 62,797,874 1,480,651 1,268,639 3,043,331 4,755,910 8,634,410 81,980,815 -
Restricted for debt service - - 1,360,336 - - - 1,360,336 -
Unrestricted 23,758,425 1,643,831 488,397 (954,195) (3,129) 2,352,620 27,285,949 1,426,595
Total net position 86,556,299$ 3,124,482$ 3,117,372$ 2,089,136$ 4,752,781$ 10,987,030$ 110,627,100$ 1,426,595$
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, 2018
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
Operating revenues:
Sales - liquor -$ 13,178,597$ -$ 17,478$ -$ -$ 13,196,075$ -$
Sales - retail - 223,157 5,583 137,143 72,594 47,457 485,934 -
Sales - utilities 21,073,548 - - - - - 21,073,548 -
Sales - concessions - - 121,281 17,829 318,910 167,067 625,087 -
Memberships - - 412,365 27,191 - 137,674 577,230 -
Admissions - - 393,737 494,446 97,823 739,200 1,725,206 -
Building rental - - 64,674 68,207 1,957,334 737,952 2,828,167 -
Rental of equipment - - - 45,015 7,248 152,447 204,710 -
Greens fees - - - 266,823 - 223,521 490,344 -
Other fees 1,684,197 - 87 322,041 171,565 1,097,960 3,275,850 902,952
Total operating revenues 22,757,745 13,401,754 997,727 1,396,173 2,625,474 3,303,278 44,482,151 902,952
Operating expenses:
Cost of sales and services - 9,461,178 50,705 125,854 119,388 90,717 9,847,842 -
Personal services 2,242,552 1,565,574 397,607 770,733 930,417 1,913,163 7,820,046 56,548
Contractual services 8,312,052 534,639 156,134 339,997 987,768 808,767 11,139,357 686,122
Commodities 914,894 61,225 54,518 188,583 108,793 338,834 1,666,847 -
Central Services 772,507 276,808 34,374 140,414 92,881 204,980 1,521,964 -
Depreciation 5,169,978 95,735 283,098 626,931 661,389 739,991 7,577,122 -
Total operating expenses 17,411,983 11,995,159 976,436 2,192,512 2,900,636 4,096,452 39,573,178 742,670
Operating income (loss)5,345,762 1,406,595 21,291 (796,339) (275,162) (793,174) 4,908,973 160,282
Nonoperating revenues (expenses):
Intergovernmental 473,990 - - - - - 473,990 -
Investment income (charges) 323,178 25,246 31,001 37,700 1,407 63,222 481,754 11,855
Donations - - - - - 27,955 27,955 -
Interest and fiscal charges (1,027,296) - (30,693) (324,113) (96,192) - (1,478,294) -
Amortization of bond premiums
(discounts) 378,488 - 10,458 42,562 (16) - 431,492 -
Gain (loss) on sale of capital assets 15,275 - - 9,500 - - 24,775 -
Miscellaneous (60,277) - - 37,380 4,471 6,357 (12,069) 704,856
Total nonoperating
revenues (expenses)103,358 25,246 10,766 (196,971) (90,330) 97,534 (50,397) 716,711
Income (loss) before contributions
and transfers 5,449,120 1,431,841 32,057 (993,310) (365,492) (695,640) 4,858,576 876,993
Contributions and transfers:
Capital contributions from other funds - - - - 57,550 - 57,550 -
Utility contribution from other funds - 906 11,725 15,085 19,106 8,459 55,281 -
Utility contribution to other funds (93,259) - - - - - (93,259) -
Transfers in - - - 100,000 250,000 300,000 650,000 -
Transfers out (100,000) (800,000) - - - (75,000) (975,000) -
Total contributions and transfers (193,259) (799,094) 11,725 115,085 326,656 233,459 (305,428) -
Change in net position 5,255,861 632,747 43,782 (878,225) (38,836) (462,181) 4,553,148 876,993
Net position - January 1
as previously reported 81,309,084 2,505,569 3,073,590 2,976,007 4,796,805 11,459,587 106,120,642 549,602
Change in accounting principle (8,646) (13,834) - (8,646) (5,188) (10,376) (46,690) -
Net position - January 1 as restated 81,300,438 2,491,735 3,073,590 2,967,361 4,791,617 11,449,211 106,073,952 549,602
Net position - December 31 86,556,299$3,124,482$ 3,117,372$ 2,089,136$ 4,752,781$ 10,987,030$110,627,100$ 1,426,595$
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, 2018
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 21,470,493$ 13,390,788$ 997,847$ 1,412,292$ 2,770,696$ 3,369,106$ 43,411,222$ 589,038$
Payment to suppliers (10,040,798) (10,770,027) (293,528) (668,030) (1,323,042) (1,439,086) (24,534,511) (813,362)
Payment to employees (2,274,936) (1,606,917) (397,607) (812,325) (947,284) (1,929,986) (7,969,055) (56,548)
Donations received - - - - - 27,955 27,955 -
Net cash provided by
(used in) operating activities 9,154,759 1,013,844 306,712 (68,063) 500,370 27,989 10,935,611 (280,872)
Cash flows from noncapital financing activities:
State grant 473,990 - - - - - 473,990 -
Utility contribution from other funds - 906 11,725 15,085 19,106 8,459 55,281 -
Utility contribution to other funds (93,259) - - - - - (93,259) -
Transfer from other funds - - - 100,000 250,000 300,000 650,000 -
Transfer to other funds (100,000) (800,000) - - - (75,000) (975,000) -
Miscellaneous received (60,277) - - 37,380 4,471 6,357 (12,069) 704,856
Net cash provided by (used in)
noncapital financing activities 220,454 (799,094) 11,725 152,465 273,577 239,816 98,943 704,856
Cash flows from capital and related financing activities:
Proceeds from capital debt 3,465,152 - - - - - 3,465,152 -
Acquisition of capital assets (5,472,308) - (84,692) (1,968,876) - (131,448) (7,657,324) -
Proceeds from disposals
of capital assets 15,275 - - 9,500 - - 24,775 -
Principal paid on bonds (4,980,000) - (80,000) (185,000) (1,932,000) - (7,177,000) -
Interest and fiscal charges paid on bonds (1,049,101) - (34,986) (347,253) (111,953) - (1,543,293) -
Net cash provided by (used in)
capital and related
financing activities (8,020,982) - (199,678) (2,491,629) (2,043,953) (131,448) (12,887,690) -
Cash flows from investing activities:
Interest received 301,760 23,663 28,721 40,467 1,407 60,223 456,241 9,609
Net increase (decrease)
in cash and investments 1,655,991 238,413 147,480 (2,366,760) (1,268,599) 196,580 (1,396,895) 433,593
Cash and investments -
January 1 19,952,061 1,593,310 1,711,475 3,468,170 1,724,435 3,834,418 32,283,869 479,963
Cash and investments -
December 31 21,608,052$ 1,831,723$ 1,858,955$ 1,101,410$ 455,836$ 4,030,998$ 30,886,974$ 913,556$
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, 2018
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 (loss) to net cash
provided by (used in) operating activities:
Operating income (loss) 5,345,762$ 1,406,595$ 21,291$ (796,339)$ (275,162)$ (793,174)$ 4,908,973$ 160,282$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 5,169,978 95,735 283,098 626,931 661,389 739,991 7,577,122 -
Donations - - - - - 27,955 27,955 -
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables (1,279,591) (11,840) 120 (174) 137,168 (7,876) (1,162,193) (313,914)
Decrease (increase) in
special assessments (3,868) - - - - - (3,868) -
Decrease (increase) in
due from other governments (3,793) - - - - - (3,793) -
Decrease (increase) in inventory (2,330) (534,050) - (14,507) - 1,549 (549,338) -
Decrease (increase) in
prepaid expenses (14,915) - - (2) - - (14,917) (8,711)
Decrease (increase) in deferred
outflows of resources 121,893 120,266 - 68,492 51,776 139,152 501,579 -
Increase (decrease) in
accounts payable (28,213) 97,050 2,256 140,035 (13,196) 2,500 200,432 (120,489)
Increase (decrease) in
salaries payable 2,522 9,131 - 7,752 5,924 3,747 29,076 -
Increase (decrease) in
due to other governments 4,113 823 (53) 1,292 (1,016) 163 5,322 1,960
Increase (decrease) in
unearned revenue - 874 - 16,293 8,054 73,704 98,925 -
Increase (decrease) in
total OPEB liability 6,060 9,697 - 6,059 3,636 7,271 32,723 -
Increase (decrease) in
net pension liability (198,399) (198,399) - (113,371) (85,028) (226,741) (821,938) -
Increase (decrease) in
compensated absences (30,389) (47,967) - (48,197) (21,430) (15,599) (163,582) -
Increase (decrease) in deferred
inflows of resources 65,929 65,929 - 37,673 28,255 75,347 273,133 -
Total adjustments 3,808,997 (392,751) 285,421 728,276 775,532 821,163 6,026,638 (441,154)
Net cash provided by
(used in) operating activities 9,154,759$ 1,013,844$ 306,712$ (68,063)$ 500,370$ 27,989$ 10,935,611$ (280,872)$
Noncash investing activities:
Increase (decrease) in
fair value of investments (20,361)$ -$ (1,038)$ (1,694)$ -$ (1,704)$ (24,797)$ (1,506)$
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable 145,555$ (14,212)$ -$ 625,434$ -$ 80,657$ 837,434$ -$
Capital assets contributed from
other funds -$ -$ -$ -$ 57,550$ -$ 57,550$ -$
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, 2018
Agency Funds
Assets
Cash and investments 699,402$
Due from other governmental units 52,577
Total assets 751,979$
Liabilities
Accounts payable 242,425$
Salaries payable 9,819
Due to other governmental units 499,735
Total liabilities 751,979$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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, 2018
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, 2018
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 costs
of insurance, safety and prevention measures, and risk management programs
across all municipal departments. Internal service funds operate in a manner similar
to enterprise funds; however, it provides services primarily to other departments
within the City.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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, 2018
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,
2018 are planned to be eliminated in 2019. 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, 2018
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, 2018
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,
2018:
Enterprise
Funds
Debt
Service Construction Utilities
Special assessments receivable
Delinquent 22,876$ -$ 22,463$
Deferred 2,344,162 21,029,049 274,997
Total 2,367,038$ 21,029,049$ 297,460$
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, 2018
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, 2018
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 which qualifies for reporting in
this category.
Deferred outflows of resources related to pensions and OPEB are reported in the
government-wide and enterprise funds Statement of Net Position. These deferred
outflows result from differences between expected and actual experience, changes of
assumptions, differences between projected and actual investment earnings, changes in
proportion, and contributions to the plan subsequent to the measurement date and before
the end of the reporting period. These amounts are deferred and amortized as required
under pension and OPEB standards.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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.
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.
Deferred inflows of resources related to pensions and OPEB are reported in the
government-wide and enterprise fund Statement of Net Position. These deferred inflows
result from differences between expected and actual experience, changes of
assumptions, and the difference between projected and actual investment earnings.
These amounts are deferred and amortized as required under pension and OPEB
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, 2018
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, 2018
46
Q. CHANGE IN ACCOUNTING PRINCIPLE
During the year ended December 31, 2019, the City implemented GASB Statement No.
75, Accounting and Financial Reporting for Post-Employment Benefits Other Than
Pensions. This statement included major changes in how plans and employers account
for OPEB benefit obligations. This statement established standards for recognizing and
measuring liabilities, deferred outflows of resources, deferred inflows of resources, and
expense/expenditures. Certain amounts necessary to full restate fiscal year 2017
financial information are not determinable; therefore, prior year comparative amounts
have not been restated. The implementation of the new GASB statement in the current
year resulted in the restatement of net position as of December 31, 2017. The net
position in the government-wide financial statements as of December 31, 2017 was
decreased by $691,702. This change reflects the City’s increased OPEB liability
($825,381 decrease in net position) and related deferred outflows of resources ($133,679
increase in net position) for the OPEB plan.
Note 2 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits 2,454,048$
Cash on hand 18,585
Investments 95,066,361
97,538,994$
Cash and investments are presented in the financial statements as follows:
Cash and investments - Statement of Net Position 91,786,135$
Restricted cash and investments - Statement of Net Position 5,053,457
Cash and investments - Statement of Fiduciary Net Position 699,402
97,538,994$
The City had restricted investments of $5,053,457 as of December 31, 2018 that
represents unspent bond proceeds to be used for construction projects and debt
payments as well as cash being held in escrow for reimbursement of expenses related to
the expansion of the north parking ramp project.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 $2,454,048 while the
balance on the bank records was $2,687,950. At December 31, 2018,
$2,057,547 of the City’s bank balance of funds held in escrow for the expansion
of the north parking ramp project was uninsured and uncollateralized, making it
subject to custodial credit risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
48
C. INVESTMENTS
The City has the following investments at year end:
Fair Value
Measurements
Rating Agency Using < 1 1 to 5 6 to 10 > 10 Total
U.S. Treasuries Aaa Mdy's Level 1 999,140$ 4,676,341$ 3,645,048$ 19,688$ 9,340,217$
SBA Notes AA+ S&P Level 1 - 43,516 96,945 - 140,461
U.S. Agencies Aaa Mdy's Level 2 5,796,906 5,277,101 1,067,016 8,396,058 20,537,081
Municipals Aaa Mdy's Level 2 1,501,590 - - - 1,501,590
Municipals AAA S&P Level 2 1,070,574 1,243,030 1,083,502 515,685 3,912,791
Municipals Aa1 Mdy's Level 2 249,383 260,416 - - 509,799 Municipals AA+ S&P Level 2 623,235 2,034,780 864,026 - 3,522,041
Municipals Aa2 Mdy's Level 2 574,690 859,518 - - 1,434,208
Municipals AA S&P Level 2 646,613 1,630,123 39,643 - 2,316,379
Municipals Aa3 Mdy's Level 2 - 1,819,615 - - 1,819,615
Municipals AA- S&P Level 2 - 416,569 - - 416,569
Municipals A+ S&P Level 2 - - 31,921 - 31,921
Municipals MIG1 Mdy's Level 2 998,790 - - - 998,790
Commercial Paper P1 Mdy's Level 2 1,995,225 - - - 1,995,225
Commercial Paper A1+ S&P Level 2 3,692,102 - - - 3,692,102
Negotiable CD's N/R N/A Level 2 5,725,777 11,447,598 - - 17,173,375
23,874,025$ 29,708,607$ 6,828,101$ 8,931,431$ 69,342,164
Money Market* AAAm S&P Level 2 2,746,997
4M Fund* N/R N/A N/A 22,977,200
Total investments 95,066,361$
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, 2018
49
Credit risk – This is the risk that an issuer or other counterparty to an investment
will not fulfill its obligations. Minnesota Statutes limit the City’s investments to
direct obligations or obligations guaranteed by the United States or its agencies;
shares of investment companies registered under the Federal Investment
Company Act of 1940 that receive the highest credit rating, are rated in one of
the two highest rating categories by a statistical rating agency, and all of the
investments have a final maturity of thirteen months or less; general obligations
rated “AA” or better; general obligations of the Minnesota Housing Finance
Agency rated “A” or better; bankers’ acceptances of United States banks eligible
for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest
quality category by at least two nationally recognized rating agencies, and
maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a
United States commercial bank, domestic branch of a foreign bank, or a United
States insurance company, and with a credit quality in one of the top two highest
categories; repurchase or reverse repurchase agreements and securities lending
agreements with financial institutions qualified as a “depository” by the
government entity, with banks that are members of the Federal Reserve System
with capitalization exceeding $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 12.3% in securities issued by FNMA.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
50
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2018 is as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets not being depreciated:
Land 22,066,283$ 260,000$ (1,104,608)$ -$ 21,221,675$
Easements 253,000 - - - 253,000
Construction in progress 6,874,775 15,725,542 (6,561,042) - 16,039,275
Total capital assets not being depreciated 29,194,058 15,985,542 (7,665,650) - 37,513,950
Capital assets being depreciated:
Land improvements 25,262,822 169,636 - - 25,432,458
Buildings and structures 64,027,086 101,996 - (57,550) 64,071,532
Furniture and office equipment 4,198,472 166,004 (16,348) - 4,348,128
Vehicles and equipment 16,380,729 1,544,581 (930,508) - 16,994,802
Infrastructure 131,447,050 6,374,225 (612,278) - 137,208,997
Parks 22,275,856 287,113 (21,099) - 22,541,870
Total capital assets being depreciated 263,592,015 8,643,555 (1,580,233) (57,550) 270,597,787
Less accumulated depreciation for:
Land improvements (18,135,907) (773,014) - - (18,908,921)
Buildings and structures (23,828,095) (1,770,017) - - (25,598,112)
Furniture and office equipment (3,600,540) (264,839) 16,348 - (3,849,031)
Vehicles and equipment (10,960,649) (1,296,602) 872,622 - (11,384,629)
Infrastructure (60,214,542) (4,271,927) 612,278 - (63,874,191)
Parks (11,529,860) (1,020,527) 14,778 - (12,535,609)
Total accumulated depreciation (128,269,593) (9,396,926) 1,516,026 - (136,150,493)
Total capital assets being depreciated, net 135,322,422 (753,371) (64,207) (57,550) 134,447,294
Governmental activities capital assets, net 164,516,480$ 15,232,171$ (7,729,857)$ (57,550)$ 171,961,244$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 11,756,441 6,457,091 (4,766,190) - 13,447,342
Total capital assets not being depreciated 12,077,382 6,457,091 (4,766,190) - 13,768,283
Capital assets being depreciated:
Land improvements & golf course 8,534,988 50,251 - - 8,585,239
Buildings and structures 38,832,898 129,913 - 57,550 39,020,361
Furniture and office equipment 140,448 - - - 140,448
Vehicles and equipment 12,828,629 402,531 (176,754) - 13,054,406
Utility infrastructure 139,134,393 4,546,294 - - 143,680,687
Lease property capital lease 430,614 - - - 430,614
Total capital assets being depreciated 199,901,970 5,128,989 (176,754) 57,550 204,911,755
Less accumulated depreciation for:
Land improvements & golf course (3,727,853) (425,056) - - (4,152,909)
Buildings and structures (16,892,634) (1,632,375) - - (18,525,009)
Furniture and office equipment (138,133) (1,547) - - (139,680)
Vehicles and equipment (6,323,138) (823,008) 176,754 - (6,969,392)
Utility infrastructure (52,497,066) (4,695,136) - - (57,192,202)
Lease property capital lease (430,614) - - - (430,614)
Total accumulated depreciation (80,009,438) (7,577,122) 176,754 - (87,409,806)
Total capital assets being depreciated, net 119,892,532 (2,448,133) - 57,550 117,501,949
Business-type activities capital assets, net 131,969,914$ 4,008,958$ (4,766,190)$ 57,550$ 131,270,232$
The conservation and sustainability (CAS) fund contributed energy efficient building
improvements with a cost of $57,550 to the arena fund.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
52
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 508,322$
Public safety 1,031,447
Public works 5,571,463
Parks 2,285,694
Total depreciation expense - governmental activities 9,396,926$
Business-type activities:
Utilities 5,169,978$
Liquor 95,735
Aquatic Center 283,098
Golf Course 626,931
Arena 661,389
Art Center 13,895
Edinborough Park 181,211
Centennial Lakes 32,670
Sports Dome 512,215
Total depreciation expense - business-type activities 7,577,122$
CONSTRUCTION COMMITMENTS
At December 31, 2018, 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$ 42,702$
17-1 Eng Parklawn Avenue Neighborhood 2,669,959 170,574
18-4 Eng Normandale Park D Neighborhood 2,353,951 62,853
18-1 Pk Centennial Lakes Bridges 1,073,860 460,611
NA Xerxes & 68th Sidewalk 34,981 2,210
NA 50th & France North Parking Ramp 9,711,023 5,654
17-9 Eng Presidents Area Sewer Rehab 235,289 5,946
750,550$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
53
Note 4 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2018: 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, 2018, 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 12/31/2018
General Obligation Bonds:
General Obligation - Capital Improvement Plan, 2010A 2.00-4.00% 11/18/2010 2/1/2021 8,285,000 2,580,000
General Obligation - Capital Improvement Plan, 2013A - Refunding 3.00-3.50% 10/10/2013 2/1/2030 5,710,000 4,270,000
General Obligation - 2016A - Refunding 2.00-3.00% 7/6/2016 2/1/2028 3,635,000 3,350,000
General Obligation - 2017C - Refunding 2.05-4.00% 12/14/2017 2/1/2029 8,955,000 8,955,000
Total General Obligation Bonds 26,585,000 19,155,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2010B 2.00-3.00% 11/18/2010 2/1/2022 2,305,000 980,000
Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 1,755,000
Permanent Improvement Revolving, 2012A 3.00-4.00% 11/15/2012 2/1/2029 2,675,000 2,085,000
Permanent Improvement Revolving, 2012A - Refunding 3.00-4.00% 11/15/2012 2/1/2019 1,990,000 225,000
Permanent Improvement Revolving, 2013A 3.00-3.50% 10/10/2013 2/1/2030 2,555,000 2,130,000
Permanent Improvement Revolving, 2014B - Refunding 2.00-3.00% 12/11/2014 2/1/2020 4,075,000 1,725,000
Permanent Improvement Revolving, 2015A 2.00-4.00% 7/9/2015 2/1/2032 6,545,000 6,190,000
Permanent Improvement Revolving, 2015A - Parking 2.00-4.00%7/9/2015 2/1/2036 2,495,000 2,305,000
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
Permanent Improvement Revolving, 2018A 3.00-4.00% 6/27/2018 2/1/2035 2,210,000 2,210,000
Total PIR Bonds 34,105,000 25,540,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2009A 2.10-4.55% 11/24/2009 2/1/2030 2,595,000 1,520,000
Public Project Revenue, Series 2014A 2.00-3.625% 7/15/2014 2/1/2035 16,155,000 14,275,000
Public Project Revenue, Series 2015A - Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 2,645,000
Total Public Project Revenue Bonds 22,240,000 18,440,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A 7.00% 2/25/2012 1/1/2023 33,690 13,476
Total bonded indebtedness - governmental activities 82,963,690$ 63,148,476$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
54
BUSINESS-TYPE ACTIVITIES
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2018
Revenue Bonds:
Recreational Facility Bonds, Series 2012B .45-1.60% 11/15/2012 2/1/2020 815,000 205,000
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 1,125,000 880,000
Recreational Facility Bonds, Series 2015B 2.00-3.25% 7/9/2015 2/1/2031 2,140,000 1,900,000
Recreational Facility Bonds, Series 2017B 3.00-4.00% 6/29/2017 2/1/2033 7,425,000 7,345,000
Recreational Facility Bonds, Series 2017D - Refunding 2.00% 12/20/2017 2/1/2030 1,640,000 1,583,000
Utility Revenue Bonds, Series 2011A 2.00-3.00% 10/27/2011 2/1/2022 11,230,000 4,815,000
Utility Revenue Bonds, Series 2012A 3.00-4.00% 11/15/2012 2/1/2023 6,100,000 3,355,000
Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 3,520,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00% 12/11/2014 2/1/2019 5,710,000 1,505,000
Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 3,750,000
Utility Revenue Bonds, Series 2016A 2.00-3.00% 7/6/2016 2/1/2027 8,775,000 8,010,000
Utility Revenue Bonds, Series 2017A 3.00-4.00% 6/29/2017 2/1/2028 6,595,000 6,595,000
Utility Revenue Bonds, Series 2018A 3.00-4.00% 6/27/2018 21/2029 3,305,000 3,305,000
Total bonded indebtedness - business-type activities 67,875,000$ 48,868,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2019 2,055,000$ 588,775$ 2,630,000$ 745,697$ 1,080,000$ 574,566$
2020 2,180,000 510,175 2,570,000 670,519 1,115,000 540,690
2021 2,250,000 427,825 1,865,000 612,719 1,145,000 505,649
2022 1,405,000 361,125 1,915,000 554,894 1,185,000 472,949
2023 1,455,000 311,800 1,720,000 494,881 1,220,000 438,951
2024-2028 8,040,000 805,984 7,415,000 1,761,901 5,915,000 1,619,058
2029-2033 1,770,000 39,032 6,420,000 626,843 4,680,000 793,567
2034-2036 - - 1,005,000 41,492 2,100,000 76,850
Total 19,155,000$ 3,044,716$ 25,540,000$ 5,508,946$ 18,440,000$ 5,022,280$
Principal Interest Principal Interest
2019 -$ 472$ 6,534,000$ 1,430,487$
2020 3,369 825 5,456,000 1,244,965
2021 3,369 590 5,614,000 1,077,010
2022 3,369 354 5,776,000 900,520
2023 3,369 118 4,679,000 732,430
2024-2028 - - 16,121,000 1,844,925
2029-2033 - - 4,688,000 303,847
Total 13,476$ 2,359$ 48,868,000$ 7,534,184$
Bonds
Business-type Activities
Revenue
Year Ending
December 31
Year Ending
December 31
Governmental Activities
Edina Emerald Energy Program
Revenue Bonds
Governmental Activities
General Public Improvement
Obligation Bonds Revolving Bonds
Public Project
Revenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
55
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2018, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation 30,630,000$ -$ (11,475,000)$ 19,155,000$ 2,055,000$
PIR 25,810,000 2,210,000 (2,480,000) 25,540,000 2,630,000
Public project revenue 19,485,000 - (1,045,000) 18,440,000 1,080,000
EEEP revenue 16,845 - (3,369) 13,476 -
Less deferred amounts:
Discounts on bonds (413,972) (18,299) 46,310 (385,961) -
Premiums on bonds 2,492,924 74,788 (352,911) 2,214,801 -
Total bonds payable 78,020,797 2,266,489 (15,309,970) 64,977,316 5,765,000
Compensated absences 4,175,226 1,827,032 (1,891,289) 4,110,969 1,644,388
Governmental activity
Long-term liabilities 82,196,023$ 4,093,521$ (17,201,259)$ 69,088,285$ 7,409,388$
Business-type activities:
Bonds payable:
Revenue bonds 52,740,000$ 3,305,000$ (7,177,000)$ 48,868,000$ 6,534,000$
Less deferred amounts:
Discounts on bonds (201,995) (27,366) 24,899 (204,462) -
Premiums on bonds 3,069,695 187,518 (456,391) 2,800,822 -
Total bonds payable 55,607,700 3,465,152 (7,608,492) 51,464,360 6,534,000
Compensated absences 894,047 94,899 (258,481) 730,465 292,186
Business-type activity
Long-term liabilities 56,501,747$ 3,560,051$ (7,866,973)$ 52,194,825$ 6,826,186$
For governmental activities, compensated absences are generally liquidated by the general
fund.
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 were 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 were 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
56
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of Total Remaining Principal Pledged
Debt Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2012B Recreational Facility Bonds Arena improvements Arena 100% 2013-2020 207,840 128,998 2,625,474
2012C Recreational Facility Bonds Arena improvements Arena 100% 2013-2033 2,571,916 53,794 2,625,474
2013B Recreational Facility Bonds Golf dome improvements Golf 100% 2014-2029 1,044,587 93,590 1,396,173
2015B Recreational Facility Bonds Golf course improvements Golf 100% 2016-2031 2,295,991 175,044 1,396,173
2017B Recreational Facility Bonds Golf course improvements Golf 100% 2018-2033 8,467,450 263,619 1,396,173
2017B Recreational Facility Bonds Pool improvements Pool 100% 2018-2027 905,000 114,986 997,727
2017D Recreational Facility Bonds Arena improvements Arena 100% 2018-2030 1,779,890 77,136 2,625,474
2011A Utility Revenue Bonds Utility infrastructure Utility 100% 2012-2022 5,102,825 1,274,150 22,757,745
2012A Utility Revenue Bonds Utility infrastructure Utility 100% 2013-2023 3,615,625 724,050 22,757,745
2014A Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2024 3,821,475 639,550 22,757,745
2014B Utility Revenue Bonds Utility infrastructure Utility 100% 2014-2019 1,527,575 1,521,975 22,757,745
2015A Utility Revenue Bonds Utility infrastructure Utility 100% 2016-2025 4,207,850 603,550 22,757,745
2016A Utility Revenue Bonds Utility infrastructure Utility 100% 2017-2027 8,977,519 995,237 22,757,745
2017A Utility Revenue Bonds Utility infrastructure Utility 100% 2018-2028 7,860,650 270,589 22,757,745
2018A Utility Revenue Bonds Utility infrastructure Utility 100% 2019-2029 4,015,991 - 22,757,745
Revenue Pledged Current Year
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness
payable principally from property taxes. The City of Edina's legal debt margin for 2018 is
computed as follows:
December 31, 2018
Market Value (after fiscal disparities) 11,547,519,732$
Debt Limit (3% of Market Value) 346,425,592$
Amount of debt applicable to debt limit:
Total bonded debt 112,016,476$
Less:
Public improvement revolving bonds (25,540,000)
Revenue bonds (48,868,000)
EEEP revenue bonds (13,476)
Total debt applicable to debt limit 37,595,000$
Legal debt margin 308,830,592$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
57
Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE
The City participates in various pension plans, total pension expense for the year ended
December 31, 2018 was $2,340,635. 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 GERF. The
GERF members belong to the Coordinated Plan. Coordinated Plan members are
covered by Social Security.
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
PERA provides retirement, disability, and death benefits. Benefit provisions are
established by state statute and can only be modified by the State Legislature. Vested,
terminated employees who are entitled to benefits but are not receiving them yet, are
bound by the provisions in effect at the time they last terminated their public service.
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 PERA's Coordinated Plan members.
Members hired prior to July 1, 1989, receive the higher of Method 1 or Method 2
formulas. Only Method 2 is used for members hired after June 30, 1989. Under
Method 1, the accrual rate for Coordinated members is 1.2 percent of average salary
for each of the first 10 years of service and 1.7 percent of average salary for each
additional year. Under Method 2, the accrual rate for Coordinated members is 1.7
percent of average salary for all years 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
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
58
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.
Benefit increases are provided to benefit recipients each January. Increases are
related to the funding ratio of the plan. If the GERF is at least 90 percent funded for
two consecutive years, benefit recipients are given a 2.5 percent increase. If the plan
has not exceeded 90 percent funded, or have fallen below 80 percent, benefit
recipients are given a one percent increase. A benefit recipient who has been
receiving a benefit for at least 12 full months as of June 30, will receive a full
increase. Members receiving benefits for at least one month but less than 12 full
months as of June 30, will receive a pro rata increase.
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. A full, unreduced pension is earned when members are age 55
and vested, or for members who were first hired prior to July 1, 1989, when age plus
years of service equal at least 90.
Benefit increases are provided to benefit recipients each January. Police and Fire
Plan benefit recipients receive a future annual 1.0 percent increase. An annual
adjustment will equal 2.5 percent any time the plan exceeds a 90 percent funded
ratio for two consecutive years. If the adjustment is increased to 2.5 percent and the
funded ratio falls below 80 percent for one year or 85 percent for two consecutive
years, the post-retirement benefit increase will be lowered to one percent. A benefit
recipient who has been receiving a benefit for at least 12 full months as of June 30
will receive a full increase. Members receiving benefits for at least one month but less
than 12 full months as of June 30 will receive a pro rata increase. For retirements
after May 31, 2014, the first increase will be delayed two years.
C. CONTRIBUTIONS
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions.
Contribution rates can only be modified by the State Legislature. Net pension liabilities
are financed by the general fund and enterprise funds.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5 percent of their annual
covered salary in calendar year 2018. The City was required to contribute 7.5 percent
for Coordinated Plan members in calendar year 2018. The City’s contributions to the
GERF for the year ended December 31, 2018 were $1,378,743. 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, 2018
59
2. PEPFF Contributions
Plan members were required to contribute 10.8 percent of their annual covered salary
in calendar year 2018. The City was required to contribute 16.2 percent of pay for
PEPFF members in calendar year 2018. The City’s regular contributions to the PEPFF
for the year ended December 31, 2018 were $1,399,053. The City’s contributions were
equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2018, the City reported a liability of $14,713,374 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 $16 million to the
fund in 2018. 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 $482,647. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of that date. The City’s proportion of the net
pension liability was based on the City’s contributions received by the PERA during
the measurement period for employer payroll paid dates from July 1, 2017 through
June 30, 2018, relative to the total employer contributions received from all of the
PERA’s participating employers.
At June 30, 2018, the City’s proportionate share was .2679 percent, which was a
decrease of .0093 percent from its proportion measured as of June 30, 2017.
City's proportionate share of the net pension liability 14,713,374$
State of Minnesota's proportionate share of the net pension
liability associated with the City 482,647
Total 15,196,021$
For the year ended December 31, 2018, the City recognized pension expense of
$1,287,599 for its proportionate share of the GERF’s pension expense. In addition, the
City recognized an additional $112,552 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota’s contribution of $16 million to the GERF.
At December 31, 2018, the City reported its proportionate share of the GERF’s
deferred outflows of resources and deferred inflows of resources, and its contributions
subsequent to the measurement date, related to pensions from the following sources:
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
60
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 402,352$ 425,441$
Changes in actuarial assumptions 1,393,426 1,692,488
Differences between projected and actual investment earnings – 1,591,192
Changes in proportion 466,223 475,457
Contributions paid to the PERA subsequent to the measurement
date 692,421 –
Total 2,954,422$ 4,184,578$
$692,421 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date that will be recognized as a
reduction of the net pension liability in the year ended December 31, 2019. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2019 504,704$
2020 (754,434)$
2021 (1,365,756)$
2022 (307,091)$
2. PEPFF Pension Costs
At December 31, 2018, the City reported a liability of $8,550,626 for its proportionate
share of the PEPFF’s net pension liability. The net pension liability was measured as
of June 30, 2018, 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, 2017 through
June 30, 2018, relative to the total employer contributions received from all of the
PERA’s participating employers.
At June 30, 2018, the City’s proportion was .8022 percent, which was a decrease of
.0088 percent from its proportion measured as of June 30, 2017. For the year ended
December 31, 2018, the City recognized pension expense of $854,410 for its
proportionate share of the PEPFF’s pension expenses. The City also recognized
$72,198 for the year ended December 31, 2018, as revenue and an offsetting reduction
of net pension liability for its proportionate share of the State of Minnesota’s on-behalf
contributions to PEPFF. Legislation passed in 2013 required the state of Minnesota to
begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
61
At December 31, 2018, the City reported its proportionate share of the PEPFF’s
deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual economic experience 346,832$ 2,095,210$
Changes in actuarial assumptions 10,588,149 12,722,586
Differences between projected and actual investment earnings – 1,824,258
Changes in proportion 321,052 158,860
Contributions paid to the PERA subsequent to the measurement
date 707,004 –
Total 11,963,037$ 16,800,914$
$707,004 reported as deferred outflows of resources related to pensions resulting from
city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2019. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Year Ended Expense
December 31, Amount
2019 (227,228)$
2020 (626,629)$
2021 (1,248,777)$
2022 (3,394,256)$
2023 (47,991)$
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2018 actuarial valuation was determined using an
individual entry age normal actuarial cost method and 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 males or females,
as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit
increases after retirement for retirees are assumed to be 1.25 percent per year for GERF
and 1.0 percent per year for PEPFF.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
62
Actuarial assumptions used in the June 30, 2018 valuation were based on the results of
actuarial experience studies. The most recent six-year experience study in the GERF was
completed in 2015. The most recent four-year experience study for PEPFF was completed
in 2016. Economic assumptions were updated in 2017 based on a review of inflation and
investment return assumptions.
The following changes in actuarial assumptions occurred in 2018:
GERF
The mortality projection scale was changed from MP-2015 to MP-2017,
The assumed post-retirement benefit increase rate was changed from 1.0 percent
per year through 2044 and 2.5 percent per year thereafter to 1.25 percent per year.
PEPFF
The mortality projection scale was changed from MP-2016 to MP-2017.
As set by statute, the assumed post-retirement benefit was changed from 1.0
percent per year through 2064 and 2.5 percent per year, thereafter, to 1.0 percent
for all years, with no trigger.
The State Board of Investment, which manages the investments of the PERA, prepares an
analysis of the reasonableness on a regular basis of the long-term expected rate of return
using a building-block method in which best-estimate ranges of expected future rates of
return are developed for each major asset class. These ranges are combined to produce
an expected long-term rate of return by weighting the expected future rates of return by the
target asset allocation percentages. The target allocation and best estimates of geometric
real rates of return for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-Term Expected
Real Rate of Return
Domestic stocks 36% 5.10%
International
stocks
17% 5.30%
Bonds 20% 0.75%
Alternative assets 25% 5.90%
Cash 2% 0.00%
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
63
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2018 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 were projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well
as what the City’s proportionate share of the net pension liability would be if it were calculated
using a discount rate 1.0 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 23,911,116$ 14,713,374$ 7,120,900$
The City’s proportionate share of the
PEPFF net pension liability 18,333,078$ 8,550,626$ 460,944$
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
64
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 2018 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, 2018
65
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 54 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, 2018 were $84,291. 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, 2018
66
Note 8 OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN
A. PLAN DESCRIPTION
The City provides post-employment insurance benefits to certain eligible employees
through its OPEB Plan, a single-employer defined benefit plan administered by the City.
All post-employment benefits are based on contractual agreements with employee groups.
Eligibility for thse benefits is based on years of service and/or minimum age requirements.
These contractual agreements do not include any specific contribution or funding
requirements. The plan does not issue a publically available financial report. No plan assets
are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No.
75.
B. BENEFITS PROVIDED
All retirees of the City upon retirement have the option under state law to continue their
medical insurance coverage through the City from the time of retirement until the employee
reaches the age of eligibility for Medicare. For members of all employee groups, the retiree
must pay the full premium to continue coverage for medical and dental insurance.
The City is legally required to include any retirees for whom it provides health insurance
coverage in the same insurance pool as its active employees, whether the premiums are
paid by the City or the retiree. Consequently, participating retirees are considered to
receive a secondary benefit known as an “implicit rate subsidy.” This benefit relates to the
assumption that the retiree is receiving a more favorable premium rate than they would
otherwise be able to obtain if purchasing insurance on their own, due to being included in
the same pool with the City’s youger and statistically healthier active employees.
For police officers and firefighters disabled in the line-of-duty, Minnesota Statutes require
the City to continue payment of the employer’s contribution toward health coverage for the
police officer or firefighter and their spouse, if the spouse was covered at the time of
disability, until age 65.
C. CONTRIBUTIONS
The required contribution is based on projected pay-as-you-go financing requirements,
with additional amounts to prefund benefits as determined periodically by the City. The
City’s current year required pay-as-you-go contributions to finance the benefits described
in the previous section totaled $138,732. Total OPEB liability will be paid by the general
fund and enterprise funds.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
67
D. MEMBERSHIP
Membership in the plan consisted of the following as of the latest actuarial valuation:
Retirees and beneficiaries receiving benefits 22
Active plan members 299
Total members 321
E. TOTAL OPEB LIABILITY OF THE CITY
The City’s total OPEB liability of $3,509,875 as of year-end was measured as of January
1, 2018 and was determined by actuarial valuation as of that date.
F. ACTUARIAL ASSUMPTIONS
The total OPEB liability was determined by an actuarial valuation as of January 1, 2018,
using the following actuarial assumptions, applied to all periods included in the
measurement, unless otherwise specified.
Discount rate 3.44%
20-year municipal bond yield 3.44%
Inflation rate 2.75%
Salary increases 3.50%
Medical trend rate 10.00% grading to 5.00% over 10 years
The actuarial assumptions used in the latest valuation were based on those used to value
pension liabilities for Minnesota city employees. The state pension plans base their
assumptions on periodic experience studies. Economic assumptions are based on input
from a variety of published sources of historical and projected future financial data. Each
assumption was reviewed for reasonableness with the source information as well as for
consistency with the other economic assumptions.
Since the plan is not funded by an irrevocable trust, the discount rate is equal to the 20-
year municipal bond yield rate of 3.44 percent, which was set by considering published
rate information for 20-year high quality, tax exempt, general obligation municipal bonds
as of the measurement date. The City discount rate used in the prior measurement date
was 4.50 percent.
Mortality rates were based on the RP-2014 mortality tables adjusted for white collar and
mortality improvements using projection scale MP-2015 for GERF members and MP-2016
for PEPFF members.
Future retirees electing coverage is assumed to 55 percent. Married future retirees electing
spouse coverage is assumed to range from 40 to 60 percent based on classification of
employee.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
68
G. CHANGES IN THE TOTAL OPEB LIABILITY
Total OPEB
Liability
Beginning balance - January 1, 2018 3,158,764$
Changes for the year
Service Cost 270,435
Interest 127,096
Changes of assumptions 87,259
Benefit payments (133,679)
Total net changes 351,111
Ending balance - December 31, 2018 3,509,875$
Assumption changes since the prior measurement date include the following:
The discount rate was changed from 4.50 percent to 3.44 percent.
H. TOTAL OPEB LIABILITY SENSITIVITY TO DISCOUNT AND HEALTH-CARE COST
TREND RATE CHANGES
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using a discount rate that is 1 percentage point
lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate Discount Rate Discount Rate
OPEB discount rate 2.44% 3.44% 4.44%
Total OPEB liability 3,775,816$ 3,509,875$ 3,258,221$
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using healthcare cost trend rates that are 1
percentage point lower or 1 percentage point higher than the current healthcare cost trend
rates:
1% Decrease in 1% Increase in
Medical Trend Rate Medical Trend Rate Medical Trend Rate
OPEB medical trend rate 9.00% decreasing to 10.00% decreasing to 11.00% decreasing to
4.00% over 10 years 5.00% over 10 years 6.00% over 10 years
Total OPEB liability 3,121,939$ 3,509,875$ 3,968,449$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
69
I. OPEB EXPENSE AND RELATED DEFERRED OUTFLOWS OF RESOURCES AND
DEFERRED INFLOWS OF RESOURCES
For the current year ended, the City recognized OPEB expense of $267,973. As of year-
end, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Changes of assumptions 78,086$ –$
City contributions subsequent to the measurement date 138,732 –
Total 216,818$ –$
A total of $138,732 reported as deferred outflows of resources related to OPEB resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the toal OPEB liability in the year ending December 31, 2019. Other amounts
reported as deferred outlfows and inflows of resources related to the plan will be
recognized in pension expense as follows:
OPEB
Year Ended Expense
December 31, Amount
2019 9,173$
2020 9,173$
2021 9,173$
2022 9,173$
2023 9,173$
Thereafter 32,221$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
70
Note 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Debt Nonmajor
General Service Construction Golf Course Arena Enterprise Total
Transfer out:
General Fund -$ -$ 2,039,771$ -$ -$ -$ 2,039,771$
Construction Fund - 3,100,000 - - - - 3,100,000
Utilities Fund - - 100,000 - - - 100,000
Liquor Fund 50,000 - 100,000 100,000 250,000 300,000 800,000
Nonmajor Enterprise - - 75,000 - - - 75,000
50,000$ 3,100,000$ 2,314,771$ 100,000$ 250,000$ 300,000$ 6,114,771$
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, $100,000, $250,000, $150,000 and $150,000 to the
general, golf course, arena, art center, and centennial lakes funds, respectively, to
subsidize operations.
2. The utilities fund and liquor fund transferred $100,000 each to the construction fund to
fund the capital improvement program, as planned in the 2018 budget.
3. The centennial lakes funds transferred $75,000 of association fees to the construction
fund to help fund the replacement of the pedestrian bridges at centennial lakes park.
4. The general fund transferred $2,039,771 of the 2017 unassigned fund balance to the
construction fund to subsidize the capital improvement program.
5. The construction fund transferred $3,100,000 of PIR assessment revenue to the debt
service fund for related debt payments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
71
Note 10 TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are the administering authorities for the
following Tax Increment Districts:
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
District number 1211 (Pentagon Park Increment Financing District) is an economic development
district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043.
District number 1212 (Grandview 2 Increment Financing District) is an economic development
district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1214 (66 West Increment Financing District) is an economic development district
established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1215 (50th and France 2) is an economic development district established in 2017
pursuant to Minnesota Statutes with a termination date of 2045.
The following table reflects values as of December 31, 2018:
TIF #1208 TIF #1211 TIF #1212 TIF #1214 TIF #1215 Total
Original tax capacity 7,289,563$ 691,608$ 39,890$ 25,525$ 57,986$ 8,104,572$
Current tax capacity 13,393,899 1,136,782 117,658 26,135 57,986 14,732,460
Fiscal Disparities 1,242,852 148,627 6,957 - - 1,398,436
Tax capacity change 4,861,484 296,547 70,811 610 - 5,229,452
Retained captured tax capacity 4,861,484$ 296,547$ 70,811$ 610$ -$ 5,229,452$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 $75,000 per occurrence deductible and is
subject to an annual aggregate deductible of $150,000, with a $1,000,000 per occurrence
maximum.
Liquor liability coverage is provided through the League of Minnesota Cities Insurance
Trust. The City pays an annual premium for this coverage and has a $1,000,000 annual
maximum.
Settlement claims have not exceeded insurance coverage for each of the past three
years. There were no significant decreases in insurance coverage during 2018.
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, 2018.
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, 2018
73
Note 12 CONDUIT DEBT OBLIGATION
As of December 31, 2018, the City of Edina had four series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $28,260,000. 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, 2018,
the City paid a total of $61,640 in membership fees to the PSTF, equal to 17.9% of membership
fees collected for the year.
Note 15 SUBSEQUENT EVENT
On May 21, 2019 the City issued General Obligation bonds, series 2019A totaling $10,815,000.
These bonds were issued with interest rates ranging from 3.00 to 5.00 percent with a final
maturity of February 1, 2036.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
74
Note 16 FUND BALANCES
A. Classifications
At December 31, 2018, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund
Debt Service
Fund
Construction
Fund
Nonmajor
Funds Total
Restricted
Park dedication 961,133$ -$ -$ -$ -$ 961,133$
Tax increments - 11,034,285 - - - 11,034,285
Affordable housing - 2,061,460 - - - 2,061,460
Debt service - - 7,871,858 - - 7,871,858
Pedestrian and cyclist improvements - - - - 387,202 387,202
Energy efficiency projects - - - - 30,072 30,072
Forfeitures - - - - 560,322 560,322
Grant funds - - - - 85,614 85,614
Arts and culture - - - - 31,137 31,137
Donations - - - - 134,925 134,925
Conservation and sustainability initiatives - - - - 460,314 460,314
Total Restricted 961,133 13,095,745 7,871,858 - 1,689,586 23,618,322
Assigned
Compensated absences 1,644,388 - - - - 1,644,388
Race and equity 61,353 - - - - 61,353
Geographic information system (GIS) 200,000 - - - - 200,000
Seal coating 200,000 - - - - 200,000
Construction commitments - - - 744,604 - 744,604
Special projects - - - 2,790,948 - 2,790,948
Equipment - - - 3,815,236 - 3,815,236
PIR - - - 3,751,602 - 3,751,602
Construction - - - 8,623,953 - 8,623,953
Total Assigned 2,105,741 - - 19,726,343 - 21,832,084
Unassigned 16,812,851 - - - - 16,812,851
Total Fund Balance 19,879,725$ 13,095,745$ 7,871,858$ 19,726,343$ 1,689,586$ 62,263,257$
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, 2018, the City has $16,812,851 of unassigned fund balance in the
general fund, or 56.0% of 2019 budgeted property tax revenue. This amount is $2,708,564
above the goal range identified in the policy.
C. Deficit Fund Equity
The following funds had deficit fund balance/net position at December 31, 2018:
Nonmajor Proprietary Funds:
Art Center (53,739)$
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2018
2018
Actual Variance with
Original Final Amounts Final Budget
Revenues:
Taxes:
General property taxes 28,493,077$ 28,493,077$ 28,367,096$ (125,981)$
Franchise taxes 870,500 870,500 845,178 (25,322)
Lodging tax 22,000 22,000 25,298 3,298
Total taxes 29,385,577 29,385,577 29,237,572 (148,005)
Licenses and permits: 4,351,930 4,351,930 5,836,167 1,484,237
Intergovernmental:
Federal: 60,000 60,000 57,388 (2,612)
State:
Municipal state aid 195,000 195,000 492,683 297,683
Other 130,000 130,000 170,044 40,044
State aid - police 390,000 390,000 453,130 63,130
State aid - fire 415,000 415,000 445,117 30,117
Health programs 118,977 118,977 119,061 84
Total intergovernmental 1,308,977 1,308,977 1,737,423 428,446
Charges for services:
Administration 107,325 107,325 145,165 37,840
Communications & Technology 168,273 168,273 157,755 (10,518)
Finance 497,624 497,624 495,833 (1,791)
Public Works 17,000 17,000 4,565 (12,435)
Engineering 226,400 226,400 213,046 (13,354)
Police 632,642 632,642 669,103 36,461
Fire 2,377,400 2,377,400 2,271,860 (105,540)
Parks & Recreation 485,340 485,340 590,318 104,978
Community Development 80,000 80,000 138,801 58,801
Total charges for services 4,592,004 4,592,004 4,686,446 94,442
Fines and forfeits 900,000 900,000 1,042,091 142,091
Miscellaneous:
Investment income 120,000 120,000 298,135 178,135
Rental of property 449,550 449,550 632,011 182,461
Other 8,000 8,000 555,463 547,463
Total miscellaneous 577,550 577,550 1,485,609 908,059
Total revenues 41,116,038 41,116,038 44,025,308 2,909,270
Budgeted Amounts
75
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2018
2018
Actual Variance with
Original Final Amounts Final Budget
Expenditures:
Current:
General government:
Administration:
Personal services 1,047,674$ 1,047,674$ 1,080,676$ 33,002$
Contractual services 821,063 821,063 853,850 32,787
Commodities 106,000 106,000 54,153 (51,847)
Central services 126,024 126,024 124,207 (1,817)
Total administration 2,100,761 2,100,761 2,112,886 12,125
Communications & technology:
Personal services 789,484 789,484 777,073 (12,411)
Contractual services 246,150 246,150 242,443 (3,707)
Commodities 140,500 140,500 94,786 (45,714)
Central services 92,424 92,424 90,348 (2,076)
Total communications & technology 1,268,558 1,268,558 1,204,650 (63,908)
Human Resources:
Personal services 743,267 743,267 989,520 246,253
Contractual services 80,200 80,200 20,181 (60,019)
Commodities 2,800 2,800 2,479 (321)
Central services 36,168 36,168 34,443 (1,725)
Total human resources 862,435 862,435 1,046,623 184,188
Finance:
Personal services 687,345 687,345 642,298 (45,047)
Contractual services 284,610 284,610 271,115 (13,495)
Commodities 17,250 17,250 10,177 (7,073)
Central services 59,244 59,244 57,979 (1,265)
Total finance 1,048,449 1,048,449 981,569 (66,880)
Community development:
Personal services 1,380,658 1,380,658 1,442,884 62,226
Contractual services 276,400 276,400 237,055 (39,345)
Commodities 9,200 9,200 5,994 (3,206)
Central services 130,836 130,836 128,212 (2,624)
Total community development 1,797,094 1,797,094 1,814,145 17,051
Total general government 7,077,297 7,077,297 7,159,873 82,576
Public safety:
Police:
Personal services 9,692,847 9,692,847 9,664,549 (28,298)
Contractual services 1,116,751 1,116,751 1,063,578 (53,173)
Commodities 116,418 116,418 102,708 (13,710)
Central services 1,317,144 1,317,144 1,303,296 (13,848)
Total police 12,243,160 12,243,160 12,134,131 (109,029)
Fire:
Personal services 6,628,199 6,628,199 6,539,524 (88,675)
Contractual services 647,310 647,310 632,015 (15,295)
Commodities 309,950 309,950 272,525 (37,425)
Central services 640,680 640,680 626,196 (14,484)
Total fire 8,226,139 8,226,139 8,070,260 (155,879)
Total public safety 20,469,299 20,469,299 20,204,391 (264,908)
Budgeted Amounts
76
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2018
2018
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
Public works:
Public works:
Personal services 2,692,868$ 2,692,868$ 2,843,283$ 150,415$
Contractual services 1,152,400 1,152,400 708,060 (444,340)
Commodities 1,321,250 1,321,250 1,640,397 319,147
Central services 1,269,180 1,269,180 1,270,204 1,024
Total public works 6,435,698 6,435,698 6,461,944 26,246
Engineering:
Personal services 1,420,682 1,420,682 1,308,889 (111,793)
Contractual services 216,500 216,500 96,691 (119,809)
Commodities 25,000 25,000 24,861 (139)
Central services 127,680 127,680 124,250 (3,430)
Total engineering 1,789,862 1,789,862 1,554,691 (235,171)
Total public works 8,225,560 8,225,560 8,016,635 (208,925)
Parks:
Parks & recreation:
Personal services 3,237,315 3,237,315 3,241,655 4,340
Contractual services 1,207,310 1,207,310 1,118,173 (89,137)
Commodities 458,025 458,025 336,355 (121,670)
Central services 491,232 491,232 486,562 (4,670)
Total parks & recreation 5,393,882 5,393,882 5,182,745 (211,137)
Total expenditures 41,166,038 41,166,038 40,563,644 (602,394)
Revenues over (under) expenditures (50,000) (50,000) 3,461,664 3,511,664
Other financing sources (uses):
Utility contribution from other funds - - 37,978 37,978
Transfers in 50,000 50,000 50,000 -
Transfers out - (2,039,771) (2,039,771) -
Total financing sources (uses) 50,000 (1,989,771) (1,951,793) 37,978
Net increase (decrease) in fund balance -$ (2,039,771)$ 1,509,871 3,549,642$
Fund balance - January 1 18,369,854
Fund balance - December 31 19,879,725$
77
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2018
2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 125,000$ 125,000$ 124,493$ (507)$
Tax increment collections 4,900,000 4,900,000 4,997,706 97,706
Investment income 120,500 120,500 253,744 133,244
Charges for services 6,800,000 6,800,000 45,200 (6,754,800)
Other revenues 250,000 250,000 - (250,000)
Total revenues 12,195,500 12,195,500 5,421,143 (6,774,357)
Expenditures:
Current:
Personal services 162,175 162,175 190,447 28,272
Contractual services 684,520 684,520 734,066 49,546
Commodities 900 900 7,076 6,176
Capital outlay 19,635,000 19,635,000 10,892,125 (8,742,875)
Total expenditures 20,482,595 20,482,595 11,823,714 (8,658,881)
Revenues over (under) expenditures (8,287,095) (8,287,095) (6,402,571) 1,884,524
Other financing sources (uses):
Sale of capital assets - - 6,051,120 6,051,120
Net increase (decrease) in fund balance (8,287,095)$ (8,287,095)$ (351,451) 7,935,644$
Fund balance - January 1 13,447,196
Fund balance - December 31 13,095,745$
Budgeted Amounts
78
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE CITY'S TOTAL
OPEB LIABILITY AND RELATED RATIOS
For The Year Ended December 31, 2018
2018
Total OPEB liability
Service Cost 270,435$
Interest 127,096
Changes of assumptions 87,259
Benefit payments (133,679)
Net changes in total OPEB Liability 351,111
Total OPEB liability - beginning of year 3,158,764
Total OPEB liability - end of year 3,509,875$
Covered payroll 23,900,000$
Total OPEB liability as a percentage of covered payroll 14.69%
Notes: The City implemented GASB Statement No. 75 in fiscal 2018. This schedule is intended to present 10-year trend
information. Additional years will be added as they become available. No plan assets are accumulated in a trust that meets
the criteria in paragraph 4 of GASB Statement No. 75.
79
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2018
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%
12/31/2018 6/30/2018 0.2679% 14,713,374 482,647 15,196,021 18,007,013 84.39% 79.53%
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%
12/31/2018 1,378,743 1,378,743 - 18,382,627 7.50%
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
Schedule of City's and Non-Employer Proportionate Share of Net Pension Liability
Covered
Payroll
Contributions as a
Percentage of Covered
Payroll
80
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2018
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%
12/31/2018 6/30/2018 0.8022% 8,550,626 8,454,142 101.14% 88.84%
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%
12/31/2018 1,399,053 1,399,053 - 8,623,704 16.22%
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, 2018
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, 2018
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
Administration 2,100,761$ 2,112,886$ 12,125$
Human resources 862,435 1,046,623 184,188
Community development 1,797,094 1,814,145 17,051
Public Works
Public works 6,435,698 6,461,944 26,246
Excess expenditures in the General Fund administration and community development departments
are due to an increase in salaries due to new positions being added in 2018 that were not budgeted.
Excess expenditures in the General Fund human resources department are due to increased
severance expenses resulting from retirements.
Excess expenditures in the General Fund public works department are due to increased blacktop and
salt expenses resulting from weather and road conditions.
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 7,600,886$ 7,622,963$ 22,077$
Construction Fund 8,213,574 8,564,694 351,120
Police Fund 85,500 130,476 44,976
Environmental Efficiency Fund - 48,630 48,630
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 police fund are the result of purchasing new 911 logging technology.
Excess expenditures in the environmental efficiency fund are the result of anticipating this fund to be
fully spent in 2017 resulting in no budget being set for 2018 going forward.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
84
Note C PENSION INFORMATION
General Employees Retirement Fund
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00 percent per year through 2044 and
2.50 percent per year thereafter to 1.25 percent per year.
2017 Changes
Changes in Plan Provisions:
The State’s special funding contribution increased from $6 million to $16 million.
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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
85
Public Employees Police and Fire Fund
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
As set by state statutes, the assumed post-retirement benefit increase was changed from
1.00 percent per year through 2064, and 2.50 percent per year thereafter, to 1.00 percent for
all years with no trigger.
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2018
86
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.
Note D OTHER POST-EMPLOYMENT BENFITS INFORMATION
Other Post-Employment Benefits Plan
2018 Changes
Changes in Actuarial Assumptions:
The discount rate was changed from 4.50 percent to 3.44 percent.
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, 2018
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 -$ 637,725$ 133,814$ 70,657$ 32,339$ 346,002$ 29,935$ 1,250,472$
Accrued interest - - 516 223 104 924 137 1,904
Accounts receivable - 1,675 595 299,907 - 141,014 - 443,191
Due from other governments - 9,862 - 47,551 108 - - 57,521
Total assets -$ 649,262$ 134,925$ 418,338$ 32,551$ 487,940$ 30,072$ 1,753,088$
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Liabilities:
Accounts payable -$ 3,326$ -$ 737$ 1,306$ 25,002$ -$ 30,371$
Salaries payable - - - 2,933 - 2,624 - 5,557
Contracts payable - - - 27,466 - - - 27,466
Total liabilities - 3,326 - 31,136 1,306 27,626 - 63,394
Deferred inflows of resources
Unavailable revenue - taxes - - - - 108 - - 108
Fund balance:
Restricted - 645,936 134,925 387,202 31,137 460,314 30,072 1,689,586
Total liabilities, deferred
inflows of resources,
and fund balance -$ 649,262$ 134,925$ 418,338$ 32,551$ 487,940$ 30,072$ 1,753,088$
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, 2018
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 - - - 1,186,088 - 426,047 - 1,612,135
Intergovernmental 123,454 - - 175,600 - - - 299,054
Fines and forfeitures - 80,335 - - - - - 80,335
Investment income - 57 2,237 1,170 450 4,011 - 7,925
Other revenues - 112,061 1,755 59,211 2,562 49,526 - 225,115
Total revenues 123,454 192,453 3,992 1,422,069 23,012 479,584 - 2,244,564
Expenditures:
Current:
General government 123,454 - - - - 165,601 - 289,055
Public safety - 107,409 - - - - - 107,409
Public works - - - 191,994 - - 8,730 200,724
Parks - - - - 12,656 - - 12,656
Capital Outlay:
Public safety - 23,067 - - - - - 23,067
Public works - - - 866,638 - 8,353 39,900 914,891
Parks - - - - - 92,238 - 92,238
Total expenditures 123,454 130,476 - 1,058,632 12,656 266,192 48,630 1,640,040
Net increase (decrease)
in fund balance - 61,977 3,992 363,437 10,356 213,392 (48,630) 604,524
Fund balance (deficits) -
January 1 - 583,959 130,933 23,765 20,781 246,922 78,702 1,085,062
Fund balance -
December 31 -$ 645,936$ 134,925$ 387,202$ 31,137$ 460,314$ 30,072$ 1,689,586$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
Intergovernmental 125,000$ 125,000$ 123,454$ (1,546)$
Expenditures:
Current:
General government
Contractual services 125,000 125,000 123,454 (1,546)
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
Fines and forfeiture -$ -$ 80,335$ 80,335$
Investment income 4 4 57 53
Other revenues 167,061 167,061 112,061 (55,000)
Total revenues 167,065 167,065 192,453 25,388
Expenditures:
Current:
Public safety
Contractual services 78,000 78,000 92,293 14,293
Commodities 7,500 7,500 15,116 7,616
Capital outlay:
Public safety - - 23,067 23,067
Total expenditures 85,500 85,500 130,476 44,976
Net increase (decrease) in fund balance 81,565$ 81,565$ 61,977 (19,588)$
Fund balance - January 1 583,959
Fund balance - December 31 645,936$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
Investment income 200$ 200$ 2,237$ 2,037$
Donations 5,000 5,000 1,755 (3,245)
Total revenues 5,200 5,200 3,992 (1,208)
Expenditures:
Capital outlay:
Parks 40,000 40,000 - (40,000)
Net increase (decrease) in fund balance (34,800)$ (34,800)$ 3,992 38,792$
Fund balance - January 1 130,933
Fund balance - December 31 134,925$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 1,200,000$ 1,200,000$ 1,186,088$ (13,912)$
Intergovernmental - - 175,600 175,600
Investment income - - 1,170 1,170
Other revenues - - 59,211 59,211
Total revenues 1,200,000 1,200,000 1,422,069 222,069
Expenditures:
Current:
Public works
Personal services 127,706 127,706 124,698 (3,008)
Contractual services 20,000 20,000 58,708 38,708
Commodities 15,000 15,000 3,103 (11,897)
Central services 5,772 5,772 5,485 (287)
Capital outlay:
Public works 1,051,595 1,051,595 866,638 (184,957)
Total expenditures 1,220,073 1,220,073 1,058,632 (161,441)
Net increase (decrease) in fund balance (20,073)$ (20,073)$ 363,437 383,510$
Fund balance - January 1 23,765
Fund balance - December 31 387,202$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 20,000$ 20,000$ 20,000$ -$
Investment income 75 75 450 375
Other revenues 5,150 5,150 2,562 (2,588)
Total revenues 25,225 25,225 23,012 (2,213)
Expenditures:
Current:
Parks
Contractual services 15,250 15,250 12,459 (2,791)
Commodities 600 600 197 (403)
Total expenditures 15,850 15,850 12,656 (3,194)
Net increase (decrease) in fund balance 9,375$ 9,375$ 10,356 981$
Fund balance - January 1 20,781
Fund balance - December 31 31,137$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
Franchise taxes 450,000$ 450,000$ 426,047$ (23,953)$
Investment income - - 4,011 4,011
Other revenues - - 49,526 49,526
Total revenues 450,000 450,000 479,584 29,584
Expenditures:
Current:
General government
Personal services 125,357 125,357 110,767 (14,590)
Contractual services 127,375 127,375 45,807 (81,568)
Commodities 75,000 75,000 3,932 (71,068)
Central services 5,376 5,376 5,095 (281)
Capital outlay:
General government 125,000 125,000 - (125,000)
Public works - - 8,353 8,353
Parks - - 92,238 92,238
Total expenditures 458,108 458,108 266,192 (191,916)
Net increase (decrease) in fund balance (8,108)$ (8,108)$ 213,392 221,500$
Fund balance - January 1 246,922
Fund balance - December 31 460,314$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Expenditures:
Current:
Public works
Contractual services -$ -$ 8,730$ 8,730$
Capital outlay:
Public works - - 39,900 39,900
Total expenditures - - 48,630 48,630
Net increase (decrease) in fund balance -$ -$ (48,630) (48,630)$
Fund balance - January 1 78,702
Fund balance - December 31 30,072$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 4,579,700$ 4,579,700$ 4,551,002$ (28,698)$
Special assessments - - 198,661 198,661
Investment income 6,000 6,000 11,396 5,396
Total revenues 4,585,700 4,585,700 4,761,059 175,359
Expenditures:
Debt service 7,600,886 7,600,886 7,622,963 22,077
Revenues over (under) expenditures (3,015,186) (3,015,186) (2,861,904) 153,282
Other financing sources (uses):
Transfers in 3,226,023 3,226,023 3,100,000 (126,023)
Bonds issued - - 112,956 112,956
Refunded bonds paid from escrow - - (9,480,000) (9,480,000)
Total other financing
sources (uses) 3,226,023 3,226,023 (6,267,044) (9,493,067)
Net increase (decrease) in fund balance 210,837$ 210,837$ (9,128,948) (9,339,785)$
Fund balance - January 1 17,000,806
Fund balance - December 31 7,871,858$
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, 2018
Actual Variance with
Original Final Amounts Final budget
Revenues:
General property taxes 2,567,000$ 2,567,000$ 2,551,292$ (15,708)$
Franchise taxes 105,000 105,000 102,130 (2,870)
Special assessments 4,053,411 4,053,411 4,548,544 495,133
License and permits 75,000 75,000 76,590 1,590
Intergovernmental 1,399,596 1,399,596 3,088,096 1,688,500
Charges for services 200,000 200,000 166,902 (33,098)
Investment income 155,000 155,000 318,350 163,350
Other revenues - - 209,699 209,699
Total revenues 8,555,007 8,555,007 11,061,603 2,506,596
Expenditures:
Current:
General government
Contractual services - - 249,772 249,772
Public safety
Commodities - - 11,276 11,276
Public works
Personal services 105,568 105,568 133,858 28,290
Contractual services 126,585 126,585 309,177 182,592
Commodities 32,405 32,405 20,659 (11,746)
Central services 1,968 1,968 1,876 (92)
Parks
Personal services - - 2,197 2,197
Contractual services - - 4,510 4,510
Commodities - - 854 854
Capital outlay:
General government 631,500 631,500 2,001,369 1,369,869
Public safety 1,290,000 1,290,000 810,753 (479,247)
Public works 5,890,193 5,890,193 4,319,380 (1,570,813)
Parks 135,355 135,355 699,013 563,658
Total expenditures 8,213,574 8,213,574 8,564,694 351,120
Revenues over (under) expenditures 341,433 341,433 2,496,909 2,155,476
Other financing sources (uses):
Transfers in 200,000 200,000 2,314,771 2,114,771
Transfers out (3,226,023) (3,226,023) (3,100,000) 126,023
Sale of capital assets - - 150,510 150,510
Bonds issued 2,817,566 2,817,566 2,097,044 (720,522)
Premium on bonds issued - - 74,787 74,787
Discount on bonds issued - - (18,299) (18,299)
Total other financing
sources (uses) (208,457) (208,457) 1,518,813 1,727,270
Net increase (decrease) in fund balance 132,976$ 132,976$ 4,015,722 3,882,746$
Fund balance - January 1 15,710,621
Fund balance - December 31 19,726,343$
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, 2018
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Assets
Current assets:
Cash and investments 253,827$ 2,263,055$ 772,822$ 741,294$ 4,030,998$
Interest receivable 598 8,719 2,778 2,485 14,580
Accounts receivable - 9,457 1,651 17,150 28,258
Inventory 7,169 - - - 7,169
Total current assets 261,594 2,281,231 777,251 760,929 4,081,005
Noncurrent assets:
Net capital assets 54,544 877,680 203,012 7,499,174 8,634,410
Deferred outflows of resources:
OPEB plan deferments 542 1,626 1,084 - 3,252
Defined benefit pension plans 59,685 89,528 59,685 29,843 238,741
Total deferred outflows of resources: 60,227 91,154 60,769 29,843 241,993
Total assets and deferred
outflows of resources 376,365 3,250,065 1,041,032 8,289,946 12,957,408
Liabilities:
Current liabilities:
Accounts payable 18,986 33,353 22,702 17,441 92,482
Salaries payable 5,728 24,173 17,346 2,539 49,786
Due to other governments 941 8,476 2,358 6,662 18,437
Unearned revenue 9,215 30 - 73,704 82,949
Compensated absences payable 383 17,429 36,803 - 54,615
Total current liabilities 35,253 83,461 79,209 100,346 298,269
Noncurrent liabilities:
Total OPEB liability 12,499 27,908 22,673 - 63,080
Net pension liability 297,240 445,860 297,240 148,620 1,188,960
Compensated absences payable 575 26,143 55,204 - 81,922
Total noncurrent liabilities 310,314 499,911 375,117 148,620 1,333,962
Deferred inflows of resources:
Defined benefit pension plans 84,537 126,805 84,537 42,268 338,147
Total liabilities and deferred
inflows of resources 430,104 710,177 538,863 291,234 1,970,378
Net position:
Net investment in capital assets 54,544 877,680 203,012 7,499,174 8,634,410
Unrestricted (108,283) 1,662,208 299,157 499,538 2,352,620
Total net position (53,739)$ 2,539,888$ 502,169$ 7,998,712$ 10,987,030$
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, 2018
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Operating revenues:
Sales - retail 47,457$ -$ -$ -$ 47,457$
Sales - concessions 250 140,619 26,198 - 167,067
Memberships 17,115 120,559 - - 137,674
Admissions - 711,218 - 27,982 739,200
Building rental - 228,875 85,577 423,500 737,952
Rental of equipment - 14,050 138,397 - 152,447
Greens fees - - 223,521 - 223,521
Class registration & other fees 446,835 229,513 418,732 2,880 1,097,960
Total operating revenues 511,657 1,444,834 892,425 454,362 3,303,278
Operating expenses:
Cost of sales and services - 79,521 11,196 - 90,717
Personal services 396,303 723,589 655,815 137,456 1,913,163
Contractual services 108,726 345,237 164,208 190,596 808,767
Commodities 60,473 139,064 110,181 29,116 338,834
Central Services 41,000 76,536 70,382 17,062 204,980
Depreciation 13,895 181,211 32,670 512,215 739,991
Total operating expenses 620,397 1,545,158 1,044,452 886,445 4,096,452
Operating income (loss) (108,740) (100,324) (152,027) (432,083) (793,174)
Nonoperating revenues (expenses):
Investment income 2,593 37,809 12,040 10,780 63,222
Donations 14,955 - 13,000 - 27,955
Miscellaneous 2,317 3,818 222 - 6,357
Total nonoperating
revenues (expenses) 19,865 41,627 25,262 10,780 97,534
Income (loss) before transfers (88,875) (58,697) (126,765) (421,303) (695,640)
Contributions and transfers:
Utility contribution from other funds - 7,861 - 598 8,459
Transfers in 150,000 - 150,000 - 300,000
Transfers out - - (75,000) - (75,000)
Total contributions and transfers 150,000 7,861 75,000 598 233,459
Change in net position 61,125 (50,836) (51,765) (420,705) (462,181)
Net position - January 1
as previously reported (113,135) 2,595,912 557,393 8,419,417 11,459,587
Change in accounting principle (1,729) (5,188) (3,459) - (10,376)
Net position - January 1 as restated (114,864) 2,590,724 553,934 8,419,417 11,449,211
Net position - December 31 (53,739)$ 2,539,888$ 502,169$ 7,998,712$ 10,987,030$
103
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2018
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
Cash flows from operating activities:
Receipts from customers and users 511,657$ 1,437,268$ 890,865$ 529,316$ 3,369,106$
Payment to suppliers (200,007) (653,248) (342,941) (242,890) (1,439,086)
Payment to employees (427,633) (713,708) (649,531) (139,114) (1,929,986)
Donations received 14,955 - 13,000 - 27,955
Net cash provided by (used in)
operating activities (101,028) 70,312 (88,607) 147,312 27,989
Cash flows from noncapital financing activities:
Utility contribution from other funds - 7,861 - 598 8,459
Transfer from other funds 150,000 - 150,000 - 300,000
Transfer to other funds - - (75,000) - (75,000)
Miscellaneous received 2,317 3,818 222 - 6,357
Net cash provided by noncapital
financing activities 152,317 11,679 75,222 598 239,816
Cash flows from capital and related financing activities:
Acquisition of capital assets - (98,932) (19,783) (12,733) (131,448)
Cash flows from investing activities:
Interest received 2,630 35,835 11,866 9,892 60,223
Net increase (decrease) in cash
and investments 53,919 18,894 (21,302) 145,069 196,580
Cash and investments - January 1 199,908 2,244,161 794,124 596,225 3,834,418
Cash and investments - December 31 253,827$ 2,263,055$ 772,822$ 741,294$ 4,030,998$
Reconciliation of operating income (loss) to net cash
provided by (used in) operating activities:
Operating income (loss) (108,740)$ (100,324)$ (152,027)$ (432,083)$ (793,174)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used in) operating activities:
Depreciation 13,895 181,211 32,670 512,215 739,991
Donations 14,955 - 13,000 - 27,955
Changes in assets, deferred outflows of resources,
liabilities, and deferred inflows of resources:
Decrease (increase) in receivables - (7,566) (1,560) 1,250 (7,876)
Decrease (increase) in inventory 1,549 - - - 1,549
Decrease (increase) in deferred outflows
of resources 35,059 51,776 34,517 17,800 139,152
Increase (decrease) in accounts payable 8,423 (11,699) 12,281 (6,505) 2,500
Increase (decrease) in salaries payable (670) 3,139 1,811 (533) 3,747
Increase (decrease) in due to
other governments 220 (1,191) 745 389 163
Increase (decrease) in unearned revenue - - - 73,704 73,704
Increase (decrease) in total OPEB liability 1,212 3,636 2,423 - 7,271
Increase (decrease) in net pension liability (56,685) (85,028) (56,685) (28,343) (226,741)
Increase (decrease) in
compensated absences (29,083) 8,103 5,381 - (15,599)
Increase (decrease) in deferred inflows
of resources 18,837 28,255 18,837 9,418 75,347
Total adjustments 7,712 170,636 63,420 579,395 821,163
Net cash provided by (used in)
operating activities (101,028)$ 70,312$ (88,607)$ 147,312$ 27,989$
Noncash investing activities:
Increase (decrease) in
fair value of investments 88$ (1,198)$ 69$ (663)$ (1,704)$
Noncash noncapital financing activities:
Acquisition of capital assets with
contracts payable -$ 80,657$ -$ -$ 80,657$
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, 2018
Balance Balance
January 1 Additions Deductions December 31
POLICE SEIZURE
Assets:
Cash and investments 707$ 10,831$ -$ 11,538$
Liabilities:
Due to other governmental units 707$ 10,831$ -$ 11,538$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash and investments 443,386$ 691,151$ 683,155$ 451,382$
Liabilities:
Accounts payable 21,371$ 252,040$ 267,468$ 5,943$
Contracts payable - 17,527 17,527 -
Salaries payable 5,924 271,588 271,113 6,399
Due to other governmental units 416,091 149,996 127,047 439,040
Total Liabilities 443,386$ 691,151$ 683,155$ 451,382$
MINNESOTA TASK FORCE 1
Assets:
Due from other governmental units 50,193$ 501,804$ 499,420$ 52,577$
Liabilities:
Salaries payable 2,807$ 148,490$ 147,877$ 3,420$
Due to other governmental units 47,386 353,314 351,543 49,157
Total Liabilities 50,193$ 501,804$ 499,420$ 52,577$
PAYROLL
Assets:
Cash and investments 218,810$ 21,596,146$ 21,578,474$ 236,482$
Liabilities:
Accounts payable 218,810$ 21,596,146$ 21,578,474$ 236,482$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and investments 662,903$ 22,298,128$ 22,261,629$ 699,402$
Due from other governmental units 50,193 501,804 499,420 52,577
Total Assets 713,096$ 22,799,932$ 22,761,049$ 751,979$
Liabilities:
Accounts payable 240,181$ 21,848,186$ 21,845,942$ 242,425$
Contracts payable - 17,527 17,527 -
Salaries payable 8,731 420,078 418,990 9,819
Due to other governmental units 464,184 514,141 478,590 499,735
Total Liabilities 713,096$ 22,799,932$ 22,761,049$ 751,979$
107
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108
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2015 2016 2017 2018 2019
Total tax capacity 117,907,214$ 125,663,820$ 132,180,439$ 141,934,212$ 151,279,391$
Increment valuation (1,618,920) (2,493,368) (3,474,097) (4,525,127) (5,229,452)
Contribution to fiscal
disparities pool (9,626,075) (10,679,187) (11,851,919) (12,166,916) (13,440,625)
Tax capacity used
for rate calculation 106,662,219 112,491,265 116,854,423 125,242,169 132,609,314
Fiscal disparities distribution 2,540,472 2,636,381 2,901,964 3,210,559 3,473,642
Adjusted net tax capacity 109,202,691$ 115,127,646$ 119,756,387$ 128,452,728$ 136,082,956$
Tax levies:
General fund 22,933,958$ 25,023,952$ 26,860,319$ 28,493,077$ 30,009,121$
Arts & culture fund 20,000 20,000 20,000 20,000 20,000
Equipment 1,617,072 1,680,000 2,251,550 2,567,000 2,630,000
Debt service 4,510,380 4,503,521 4,595,500 4,579,700 4,611,900
HRA operating - - 95,000 125,000 160,000
Total certified tax levies 29,081,410 31,227,473 33,822,369 35,784,777 37,431,021
Referendum market value levy 618,600 571,650 - - -
Total levy 29,700,010$ 31,799,123$ 33,822,369$ 35,784,777$ 37,431,021$
Tax capacity rate:
General fund revenue 22.477% 23.223% 24.348% 24.187% 23.992%
Bonds & interest 4.128% 3.914% 3.841% 3.564% 3.388%
HRA 0.000%0.000%0.082%0.098%0.119%
Total tax capacity rate 26.605%27.137%28.271%27.849%27.499%
Market value rate 0.00631%0.00550%0.00000%0.00000%0.00000%
109
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2018
Final
Interest Maturity Original
Rates Date Date Issue Redeemed
General Obligation Bonds:
GO Capital Improvement Plan, Series 2009A 3.00 - 4.40 04/29/09 02/01/18 14,000,000$ 3,895,000$
GO Capital Improvement Plan, Series 2010A 2.00 - 4.00 11/18/10 02/01/21 8,285,000 4,915,000
GO Capital Improvement Plan, Series 2013A -
Refunding 3.00 - 3.50 10/10/13 02/01/30 5,710,000 1,145,000
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 8,955,000 -
Total General Obligation Bonds 40,585,000 9,955,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 1,095,000
GO Permanent Improvement Revolving
Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 1,240,000
GO Permanent Improvement Revolving
Series 2012A 3.00 - 4.00 11/15/12 02/01/29 2,675,000 435,000
GO Permanent Improvement Revolving
Series 2012A - Refunding 3.00 - 4.00 11/15/12 02/01/19 1,990,000 1,405,000
GO Permanent Improvement Revolving
Series 2013A 3.00 - 3.50 10/10/13 02/01/30 2,555,000 280,000
GO Permanent Improvement Revolving
Series 2014B - Refunding 2.00 - 3.00 12/11/14 02/01/20 4,075,000 1,535,000
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 95,000
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 1,995,000 - GO Permanent Improvement Revolving
Series 2018A 3.00 - 3.125 06/27/18 02/01/35 - -
Total PIR Bonds 31,895,000 6,085,000
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 1,245,000
HRA Public Project Revenue, Series 2015A -Refunding 2.50 - 3.00 07/09/15 05/01/26 3,490,000 560,000
Total Public Project Revenue Bonds 22,240,000 2,755,000
Edina Emerald Energy Program Revenue Bonds:Edina Emerald Energy Progrm Revenue, 2012A 7.00 02/25/12 01/01/23 33,690 16,845
Revenue Bonds:
Recreational Facility Bonds, Series 2009C 2.00 - 4.00 12/10/09 02/01/18 2,440,000 690,000
Recreational Facility Bonds, Series 2012B .45 - 1.60 11/15/12 02/01/20 815,000 485,000
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 1,125,000 180,000
Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 2,140,000 120,000
Recreational Facility Bonds, Series 2017B 3.00 - 4.00 06/29/17 02/01/33 7,425,000 -
Recreational Facility Bonds, Series 2017D -
Refunding 2.00 12/20/17 02/01/30 1,640,000 -
Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 5,285,000
Utility Revenue Bonds, Series 2012A 3.00 - 4.00 11/15/12 02/01/23 6,100,000 2,140,000
Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 1,620,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00 12/11/14 02/01/19 5,710,000 2,750,000
Utility Revenue Bonds, Series 2015A 2.00 - 4.00 07/09/15 02/01/25 5,235,000 1,000,000
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 6,595,000 - Utility Revenue Bonds, Series 2018A 3.00 - 3.125 06/27/18 02/01/29 - -
Total Public Project Revenue Bonds 67,010,000 14,270,000
Total - Bonded indebtedness 161,763,690$ 33,081,845$
Prior Years
110
Principal Interest Interest
Outstanding Payable Due Due Payable
12/31/2017 Issued Payments 12/31/2018 In 2019 In 2019 to Maturity
10,105,000$ -$ 10,105,000$ -$ -$ -$ -$
3,370,000 - 790,000 2,580,000 825,000 86,700 157,600
4,565,000 - 295,000 4,270,000 305,000 122,250 821,788
3,635,000 - 285,000 3,350,000 295,000 86,175 448,525
8,955,000 - - 8,955,000 630,000 293,650 1,616,803
30,630,000 - 11,475,000 19,155,000 2,055,000 588,775 3,044,716
1,210,000 - 230,000 980,000 235,000 24,087 57,462
2,080,000 - 325,000 1,755,000 335,000 45,950 132,650
2,240,000 - 155,000 2,085,000 160,000 60,950 363,425
585,000 - 360,000 225,000 225,000 4,500 4,500
2,275,000 - 145,000 2,130,000 150,000 61,000 410,300
2,540,000 - 815,000 1,725,000 845,000 30,275 39,075
6,545,000 - 355,000 6,190,000 365,000 191,925 1,539,565
2,400,000 - 95,000 2,305,000 100,000 75,250 791,600
3,940,000 - - 3,940,000 215,000 106,325 872,825
1,995,000 - - 1,995,000 - 67,900 584,300
- 2,210,000 - 2,210,000 - 77,535 713,244
25,810,000 2,210,000 2,480,000 25,540,000 2,630,000 745,697 5,508,946
1,645,000 - 125,000 1,520,000 125,000 60,097 342,394
14,910,000 - 635,000 14,275,000 660,000 443,169 4,374,773
2,930,000 - 285,000 2,645,000 295,000 71,300 305,113
19,485,000 - 1,045,000 18,440,000 1,080,000 574,566 5,022,280
16,845 - 3,369 13,476 - 1,061 2,948
1,750,000 - 1,750,000 - - - -
330,000 - 125,000 205,000 130,000 2,240 2,840
2,100,000 - - 2,100,000 - 53,794 471,916
945,000 - 65,000 880,000 70,000 26,565 164,587
2,020,000 - 120,000 1,900,000 125,000 52,594 395,991
7,425,000 - 80,000 7,345,000 400,000 264,500 2,027,450
1,640,000 - 57,000 1,583,000 124,000 31,040 196,890
5,945,000 - 1,130,000 4,815,000 1,160,000 121,250 287,825
3,960,000 - 605,000 3,355,000 630,000 94,350 260,625
4,060,000 - 540,000 3,520,000 550,000 88,650 301,475
2,960,000 - 1,455,000 1,505,000 1,505,000 22,575 22,575
4,235,000 - 485,000 3,750,000 495,000 108,750 457,850
8,775,000 - 765,000 8,010,000 795,000 206,837 967,519
6,595,000 - - 6,595,000 550,000 237,500 1,265,650 - 3,305,000 - 3,305,000 - 119,842 710,991
52,740,000 3,305,000 7,177,000 48,868,000 6,534,000 1,430,487 7,534,184
128,681,845$ 5,515,000$ 22,180,369$ 112,016,476$ 12,299,000$ 3,340,586$ 21,113,074$
2018
111
CITY OF EDINA, MINNESOTA
SCHEDULE OF BALANCE SHEET ACCOUNTS
TAX INCREMENT FINANCING DISTRICTS
December 31, 2018
Centennial Valley View Southdale 2 Pentagon Park Grandview 2 66th West 50th and France 2 Total
District District District District District District District Tax Increment
No. 1203 No. 1207 No. 1208 No. 1211 No. 1212 No. 1214 No. 1215 Financing Districts
Assets
Cash and Investments 1,660,745$ 623,853$ 10,134,048$ 119,824$ 348,097$ (526)$ (1,641,503)$ 11,244,538$
Accrued interest 18,214 2,343 27,706 206 663 - 1,088 50,220
Due from other districts 7,525,000 - 275,000 - - - - 7,800,000
Total assets 9,203,959$ 626,196$ 10,436,754$ 120,030$ 348,760$ (526)$ (1,640,415)$ 19,094,758$
Liabilities
Accounts payable 10,697$ -$ 16,528$ 842$ 586$ 538$ 23,815$ 53,006$
Salaries payable 1,223 - - - - - - 1,223
Contracts payable - - - - - - 319,555 319,555
Due to other districts - - 2,775,000 100,000 500,000 275,000 4,150,000 7,800,000
Total liabilities 11,920 - 2,791,528 100,842 500,586 275,538 4,493,370 8,173,784
Fund balance:
Restricted 9,192,039 626,196 7,645,226 19,188 (151,826) (276,064) (6,133,785) 10,920,974
Total liabilities and
fund balance 9,203,959$ 626,196$ 10,436,754$ 120,030$ 348,760$ (526)$ (1,640,415)$ 19,094,758$
112
CITY OF EDINA, MINNESOTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TAX INCREMENT FINANCING DISTRICTS
For The Year Ended December 31, 2018
Centennial Valley View Southdale 2 Pentagon Park Grandview 2 66th West 50th and France 2 Total
District District District District District District District Tax Increment
No. 1203 No. 1207 No. 1208 No. 1211 No. 1211 No. 1214 No. 1215 Financing Districts
Revenues:
Tax increment collections -$ -$ 4,874,724$ 122,982$ -$ -$ -$ 4,997,706$
Investment income 78,926 10,168 120,217 891 2,881 - 4,728 217,811
Total revenues 78,926 10,168 4,994,941 123,873 2,881 - 4,728 5,215,517
Expenditures:
Current:
General government 278,295 - 61,495 63,728 154,707 1,064 53,043 612,332
Capital outlay:
General government 94,568 260,000 - - - - 10,534,358 10,888,926
Total expenditures 372,863 260,000 61,495 63,728 154,707 1,064 10,587,401 11,501,258
Revenues over
(under) expenditures (293,937) (249,832) 4,933,446 60,145 (151,826) (1,064) (10,582,673) (6,285,741)
Other financing sources (uses):
Transfers in (out) 833,576 - - - - - (833,576) -
Sale of capital assets - 516,367 - - - - 5,282,464 5,798,831
Interfund loan interest 134,000 - (134,000) - - - - -
Total other financing
sources (uses) 967,576 516,367 (134,000) - - - 4,448,888 5,798,831
Net increase (decrease)
in fund balance 673,639 266,535 4,799,446 60,145 (151,826) (1,064) (6,133,785) (486,910)
Fund balance - January 1 8,518,400 359,661 2,845,780 (40,957) - (275,000) - 11,407,884
Fund balance - December 31 9,192,039$ 626,196$ 7,645,226$ 19,188$ (151,826)$ (276,064)$ (6,133,785)$ 10,920,974$
113
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114
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)
2009 2010 2011 2012
Governmental activities
Net investment in capital assets 69,622,370$ 69,783,162$ 75,045,018$ 78,644,392$
Restricted 7,132,865 9,952,443 22,915,776 23,215,910
Unrestricted 30,705,600 41,709,528 29,544,149 29,587,700
Total governmental
activities net position 107,460,835$ 121,445,133$ 127,504,943$ 131,448,002$
Business-type activities
Net investment in capital assets 47,333,794$ 48,807,806$ 56,877,100$ 63,766,144$
Restricted 624,837 618,852 623,099 876,909
Unrestricted 15,158,720 17,041,122 12,926,674 14,390,609
Total business-type
activities net position 63,117,351$ 66,467,780$ 70,426,873$ 79,033,662$
Primary government
Net investment in capital assets 116,956,164$ 118,590,968$ 131,922,118$ 142,410,536$
Restricted 7,757,702 10,571,295 23,538,875 24,092,819
Unrestricted 45,864,320 58,750,650 42,470,823 43,978,309
Total primary government
net position 170,578,186$ 187,912,913$ 197,931,816$ 210,481,664$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of
this change in accounting principle.
b The City implemented GASB 68 in fiscal year 2015. Prior year information has not been restated as a result of
this change in accounting principle.
c The City implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of
this change in accounting principle.
Fiscal Year
116
2013a 2014 2015b 2016 2017 2018c
83,842,970$ 85,708,114$ 85,838,618$ 93,247,973$ 96,149,011$ 107,133,225$
20,289,579 18,268,724 16,925,171 20,892,680 22,840,869 25,017,586
33,242,317 31,316,605 21,957,830 22,146,168 26,412,441 31,277,308
137,374,866$ 135,293,443$ 124,721,619$ 136,286,821$ 145,402,321$ 163,428,119$
66,126,387$ 75,803,672$ 83,395,794$ 85,158,869$ 82,338,560$ 81,980,815$
611,377 619,295 793,664 804,393 1,338,276 1,360,336
16,867,459 21,176,026 16,405,405 17,300,872 22,443,806 27,285,949
83,605,223$ 97,598,993$ 100,594,863$ 103,264,134$ 106,120,642$ 110,627,100$
149,969,357$ 161,511,786$ 169,234,412$ 178,406,842$ 178,487,571$ 189,114,040$
20,900,956 18,888,019 17,718,835 21,697,073 24,179,145 26,377,922
50,109,776 52,492,631 38,363,235 39,447,040 48,856,247 58,563,257
220,980,089$ 232,892,436$ 225,316,482$ 239,550,955$ 251,522,963$ 274,055,219$
Fiscal Year
117
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2009 2010 2011 2012
Expenses
Governmental activities:
General government 7,362,560$ 6,961,082$ 7,013,231$ 12,598,979$
Public safety 14,751,479 15,543,594 16,024,575 16,598,423
Public works 8,993,290 8,558,363 9,193,336 9,437,285
Parks 7,732,777 5,608,758 5,540,585 5,904,724
Interest on long-term debt 2,129,490 2,528,424 2,339,370 2,222,392
Total governmental activities expenses 40,969,596 39,200,221 40,111,097 46,761,803
Business-type activities:
Utilities 11,833,994 11,848,538 12,130,685 12,610,875
Liquor 11,449,194 11,594,643 11,727,106 11,740,744
Aquatic center 798,369 769,608 718,027 866,944
Golf course 3,588,831 3,561,573 3,390,949 3,293,192
Arena 1,665,082 1,527,536 1,689,001 2,182,200
Community activity centers 2,971,293 2,965,243 2,998,915 2,842,139
Total business-type activities expenses 32,306,763 32,267,141 32,654,683 33,536,094
Total primary government expenses 73,276,359$ 71,467,362$ 72,765,780$ 80,297,897$
Program Revenues
Governmental activities:
Charges for services:
General government 811,087$ 946,107$ 969,745$ 1,142,984$
Public safety 5,081,563 5,448,505 5,988,485 6,549,929
Other activities 804,500 723,559 775,676 913,864
Operating grants and contributions 1,377,785 1,162,411 1,392,892 1,685,026
Capital grants and contributions 2,582,999 13,325,431 5,770,912 9,137,011
Total governmental activities program revenues 10,657,934 21,606,013 14,897,710 19,428,814
Business-type activities:
Charges for services:
Utilities 14,858,488 15,036,016 15,873,937 17,729,589
Liquor 12,655,777 12,857,064 13,172,484 13,230,941
Aquatic center 859,816 945,529 913,383 1,001,946
Golf course 3,660,466 3,443,204 3,285,741 3,225,591
Arena 1,414,410 1,301,506 1,315,435 1,452,435
Community activity centers 2,192,274 2,194,476 2,331,136 2,399,090
Operating grants and contributions 135,917 373,230 135,428 1,042,195
Capital grants and contributions - - - -
Total business-type activities program revenues 35,777,148 36,151,025 37,027,544 40,081,787
Total primary government program revenues 46,435,082$ 57,757,038$ 51,925,254$ 59,510,601$
Net (Expense)/Revenue
Governmental activities (30,311,662)$ (17,594,208)$ (25,213,387)$ (27,332,989)$
Business-type activities 3,470,385 3,883,884 4,372,861 6,545,693
Total primary government net expense (26,841,277)$ (13,710,324)$ (20,840,526)$ (20,787,296)$
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes 23,834,274$ 25,122,113$ 25,040,871$ 25,884,662$
Tax increment collections 7,587,386 4,488,073 4,083,345 3,536,935
Franchise taxes 667,791 692,288 722,160 815,530
Lodging taxes - - - -
Unrestricted investment earnings 387,177 474,444 601,250 341,986
Gain on disposal of capital assets 11,709 35,594 131,365 -
Insurance recovery - - - -
Transfers 743,025 765,994 694,206 696,935
Total governmental activities 33,231,362 31,578,506 31,273,197 31,276,048
Business-type activities:
Property taxes 300,372$ -$ -$ -$
Unrestricted investment earnings 209,371 205,965 280,438 113,177
Gain (loss) on disposal of capital assets 2,250 26,574 - 2,644,854
Transfers (743,025) (765,994) (694,206) (696,935)
Total business-type activities (231,032) (533,455) (413,768) 2,061,096
Total primary government 33,000,330$ 31,045,051$ 30,859,429$ 33,337,144$
Change in Net Position
Governmental activities 2,919,700$ 13,984,298$ 6,059,810$ 3,943,059$
Business-type activities 3,239,353 3,350,429 3,959,093 8,606,789
Total primary government 6,159,053$ 17,334,727$ 10,018,903$ 12,549,848$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of this change in accounting principle.
b The City completed a major departmental reorganization in 2014, moving parks maintenance activities from parks to public works. Prior year
information has not been modified as a result of this change.
c The City implemented GASB 68 in fiscal year 2015. Prior year information has not been restated as a result of this change in accounting principle.
d The City completed a major departmental reorganization in 2018, moving parks maintenance activities from public works to parks. The City also
implemented GASB 75 in fiscal year 2018. Prior year information has not been restated as a result of either change.
Fiscal Year
118
2013a 2014b 2015c 2016 2017 2018d
8,256,261$ 8,522,319$ 8,518,236$ 9,587,567$ 9,164,272$ 10,964,266$
17,117,693 18,145,498 19,507,770 20,243,209 21,815,101 20,971,184
11,502,250 15,553,852 15,284,777 19,444,472 17,750,505 14,170,463
6,132,709 3,330,781 3,385,367 3,822,716 4,222,431 7,235,405
2,024,749 1,989,863 2,180,678 2,133,474 1,996,354 1,726,901
45,033,662 47,542,313 48,876,828 55,231,438 54,948,663 55,068,219
13,748,186 14,207,197 14,963,304 16,780,474 17,361,659 18,045,516
12,261,413 12,393,218 11,818,602 12,130,254 12,007,885 11,995,159
822,932 827,485 872,960 915,560 1,015,328 996,671
3,199,815 3,342,544 3,409,343 3,041,169 3,469,121 2,464,563
2,272,510 2,375,173 2,642,097 2,842,660 2,961,787 2,996,844
2,967,115 2,975,782 3,436,325 3,853,091 4,095,309 4,096,452
35,271,971 36,121,399 37,142,631 39,563,208 40,911,089 40,595,205
80,305,633$ 83,663,712$ 86,019,459$ 94,794,646$ 95,859,752$ 95,663,424$
1,259,908$ 1,529,555$ 1,322,430$ 1,453,009$ 1,142,120$ 2,395,535$
7,410,755 8,102,352 8,683,465 8,996,046 9,627,122 9,978,816
846,999 960,261 1,158,207 1,289,770 1,288,452 1,202,732
2,283,007 1,578,538 3,122,178 2,751,495 2,194,336 4,028,247
6,372,735 8,244,695 10,044,077 15,252,861 9,775,184 6,695,172
18,173,404 20,415,401 24,330,357 29,743,181 24,027,214 24,300,502
17,831,225 17,550,802 19,335,443 19,505,905 21,361,972 22,697,468
13,711,557 13,515,168 12,462,387 12,937,092 12,991,764 13,401,754
928,055 918,412 971,936 956,068 962,857 997,727
2,711,743 3,229,348 2,857,190 2,809,702 1,254,412 1,396,173
1,942,971 2,092,567 2,316,853 2,314,892 2,508,192 2,629,945
2,625,633 2,583,257 3,119,789 3,190,775 3,348,628 3,303,278
516,242 428,416 595,141 445,464 179,086 545,682
- - - - 904,201 -
40,267,426 40,317,970 41,658,739 42,159,898 43,511,112 44,972,027
58,440,830$ 60,733,371$ 65,989,096$ 71,903,079$ 67,538,326$ 69,272,529$
(26,860,258)$ (27,126,912)$ (24,546,471)$ (25,488,257)$ (30,921,449)$ (30,767,717)$
4,995,455 4,196,571 4,516,108 2,596,690 2,600,023 4,376,822
(21,864,803)$ (22,930,341)$ (20,030,363)$ (22,891,567)$ (28,321,426)$ (26,390,895)$
26,894,161$ 27,062,224$ 29,632,072$ 31,396,421$ 33,665,029$ 35,616,432$
3,981,938 5,052,705 1,792,896 2,779,097 3,422,898 4,997,706
1,891,967 2,055,396 2,089,038 2,346,423 2,408,884 2,559,443
- 11,301 22,716 22,624 21,006 25,298
(96,390) 440,051 195,620 344,277 514,073 901,405
16,654 29,037 41,900 65,044 - 5,032,815
816,654 - - - - -
133,907 (9,605,225) (2,230,966) 99,573 5,059 305,428
33,638,891 25,045,489 31,543,276 37,053,459 40,036,949 49,438,527
-$ -$ -$ -$ -$ -$
(77,848) 191,974 91,907 136,208 254,990 481,754
17,587 - 39,427 35,946 6,554 -
(133,907) 9,605,225 2,230,966 (99,573) (5,059) (305,428)
(194,168) 9,797,199 2,362,300 72,581 256,485 176,326
33,444,723$ 34,842,688$ 33,905,576$ 37,126,040$ 40,293,434$ 49,614,853$
6,778,633$ (2,081,423)$ 6,996,805$ 11,565,202$ 9,115,500$ 18,670,810$
4,801,287 13,993,770 6,878,408 2,669,271 2,856,508 4,553,148
11,579,920$ 11,912,347$ 13,875,213$ 14,234,473$ 11,972,008$ 23,223,958$
Fiscal Year
119
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2009a 2010 2011b 2012
General fund
Reserved 18,241$ 10,258$ -$ -$
Unreserved 12,031,358 12,868,952 - -
Nonspendable - - 10,871 413,200
Restricted - - 178,295 880,395
Assigned - - 1,539,286 1,643,077
Unassigned - - 11,744,764 11,902,462
Total general fund 12,049,599$ 12,879,210$ 13,473,216$ 14,839,134$
All other governmental funds
Reserved 15,223,353$ 9,460,834$ -$ -$
Unreserved, reported in:
Special revenue funds 12,813,439 15,333,460 - -
Capital projects funds 6,683,668 12,150,968 - -
Restricted, reported in:
Special revenue funds - - 17,178,857 13,185,962
Debt service funds - - 8,068,183 9,704,408
Construction funds - - 2,087,548 2,759,463
Assigned, reported in:
Capital projects funds - - 8,098,935 7,159,890
Unassigned, reported in:
Special revenue funds - - - -
Total all other governmental funds 34,720,460$ 36,945,262$ 35,433,523$ 32,809,723$
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 is due to unspent
bond proceeds related to the current refunding that took place on February 1 of the following year
Fiscal Year
120
2013 2014c 2015 2016c 2017c 2018
-$ -$ -$ -$ -$ -$
- - - - - -
13,322 240,291 529,513 27,643 13,124 -
185,395 757,673 417,673 927,673 961,133 961,133
1,559,461 1,566,329 1,547,398 1,612,240 1,739,079 2,105,741
12,573,457 11,429,444 11,825,799 14,624,755 15,656,518 16,812,851
14,331,635$ 13,993,737$ 14,320,383$ 17,192,311$ 18,369,854$ 19,879,725$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
13,040,516 9,719,309 9,405,757 12,673,995 14,453,556 14,755,259
6,246,769 12,678,291 7,134,575 11,187,468 17,000,806 7,871,858
3,318,947 6,598,832 551,132 209,510 78,702 30,072
8,354,268 7,046,610 13,127,881 13,109,438 15,710,621 19,726,343
- - - (190,845) - -
30,960,500$ 36,043,042$ 30,219,345$ 36,989,566$ 47,243,685$ 42,383,532$
.
Fiscal Year
121
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2009 2010 2011 2012
Revenues
General property taxes 23,834,274$ 25,122,113$ 24,972,166$ 25,838,422$
Tax increment collections 7,587,386 4,488,073 4,083,345 3,536,935
Franchise taxes 667,791 692,288 722,160 815,530
Lodging fees - - - -
Special assessments 2,703,833 6,746,186 4,502,112 4,975,641
License and permits 2,104,967 2,410,314 2,724,763 3,155,351
Intergovernmental 1,507,170 3,726,849 3,059,964 2,032,966
Charges for services 2,905,410 3,014,894 3,181,961 3,708,482
Fines and forfeitures 1,224,983 1,203,767 1,243,426 1,195,054
Investment income 387,177 474,444 601,250 341,986
Rental of property 343,616 426,517 539,091 506,276
Parkland dedication - - - 702,100
Other revenues 160,035 413,400 156,231 240,841
Total revenues 43,426,642 48,718,845 45,786,469 47,049,584
Expenditures
General government 6,895,329 6,523,398 5,739,481 6,624,573
Public safety 13,692,686 14,177,387 14,668,772 14,985,068
Public works 5,911,758 5,898,023 6,000,539 6,277,506
Parks 3,688,063 3,524,950 3,633,922 3,852,260
Capital outlay: 22,997,065 13,505,827 14,235,496 13,622,443
Debt service
Principal 7,415,000 2,975,000 4,480,000 6,620,000
Interest and other charges 1,841,342 2,584,006 2,278,068 2,292,394
Total expenditures 62,441,243 49,188,591 51,036,278 54,274,244
Revenues over (under) expenditures (19,014,601) (469,746) (5,249,809) (7,224,660)
Other Financing Sources (Uses)
Utility contributions from other funds - - - -
Transfers in 11,347,773 2,903,762 5,615,669 4,495,940
Transfers out (10,604,748) (2,137,768) (4,921,463) (3,799,005)
Sale of capital assets 34,592 134,329 209,773 94,975
Insurance recovery - - - -
Bonds issued 22,950,000 2,535,000 3,320,000 2,748,720
Refunding bonds issued - 8,285,000 - 1,990,000
Premium on bonds issued 64,765 898,658 108,097 436,148
Discount on bonds issued (75,621) - - -
Payment to refunding escrow - (9,094,822) - -
Total other financing sources (uses) 23,716,761 3,524,159 4,332,076 5,966,778
Net change in fund balances 4,702,160$ 3,054,413$ (917,733)$ (1,257,882)$
Debt service as a percentage of
noncapital expenditures 21.7% 15.4% 17.8% 19.4%
Fiscal Year
122
2013 2014 2015 2016 2017 2018
26,891,756$ 26,988,493$ 29,535,270$ 31,354,023$ 33,696,550$ 35,613,883$
3,981,938 5,052,705 1,792,896 2,779,097 3,422,898 4,997,706
1,891,967 2,055,396 2,089,038 2,346,423 2,408,884 2,559,443
- 11,301 22,716 22,624 21,006 25,298
4,884,510 4,606,010 4,132,128 5,276,194 5,330,766 4,747,205
4,150,512 4,583,183 4,907,364 5,268,519 5,403,222 5,912,757
2,509,166 3,961,509 6,093,966 5,775,114 3,687,262 5,124,573
3,667,612 4,270,720 4,414,991 4,689,389 4,917,173 4,898,548
1,109,710 1,163,907 1,195,271 1,016,817 1,135,986 1,122,426
(96,390) 440,051 195,314 344,344 512,448 889,550
518,862 546,874 416,522 514,955 459,099 632,011
- 757,278 800,000 1,250,000 33,460 -
278,607 78,775 361,425 2,599,830 761,281 990,277
49,788,250 54,516,202 55,956,901 63,237,329 61,790,035 67,513,677
7,351,556 7,625,826 6,337,944 6,815,725 7,065,729 8,630,290
15,859,622 16,647,821 17,537,528 18,554,507 19,233,386 20,323,076
7,018,614 10,201,335 10,578,472 10,474,008 11,524,896 8,682,928
3,915,568 1,341,884 1,416,858 1,529,384 1,695,397 5,202,962
10,690,207 19,883,144 19,912,565 16,787,575 11,053,212 19,752,836
14,531,375 4,096,375 13,276,375 5,246,375 5,496,375 5,523,369
2,270,259 1,923,647 2,375,613 2,360,827 2,359,551 2,099,594
61,637,201 61,720,032 71,435,355 61,768,401 58,428,546 70,215,055
(11,848,951) (7,203,830) (15,478,454) 1,468,928 3,361,489 (2,701,378)
- - - - - 37,978
3,472,964 1,404,975 3,232,770 3,504,542 5,130,405 5,464,771
(3,339,057) (11,010,200) (6,472,066) (3,404,969) (5,057,263) (5,139,771)
61,642 70,603 78,509 65,044 84,388 6,201,630
816,654 - 167,167 - - -
2,555,000 16,155,000 9,040,000 3,940,000 1,995,000 2,210,000
5,710,000 5,180,000 3,490,000 3,635,000 8,955,000 -
275,360 327,987 492,838 450,409 798,791 74,787
(60,334) (179,891) (47,815) (16,805) (51,148) (18,299)
- - - - (3,785,000) (9,480,000)
9,492,229 11,948,474 9,981,403 8,173,221 8,070,173 (648,904)
(2,356,722)$ 4,744,644$ (5,497,051)$ 9,642,149$ 11,431,662$ (3,350,282)$
32.2% 13.7% 28.9% 16.2% 15.9% 14.6%
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
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 28.271% 0.00000% 3.105
11,655,318 11,655,318 11,547,520 141,934 125,242 128,453 27.849% 0.00000% 3.069
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)
2015
Fiscal Direct
2013
2014
2009
2010
2011
2012
2018
Year
2016
2017
124
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
Basic Debt HRA Total Tax Direct &
Rate Rate Rate Capacity RMV Hennepin Tax Cap. RMV Other Overlap
20.204% 2.243% 0.000% 22.447% 0.006% 40.413% 17.766% 0.183% 8.413% 89.039%
20.004% 2.968% 0.000% 22.972% 0.006% 42.640% 18.746% 0.194% 9.431% 93.789%
21.548% 3.112% 0.000% 24.660% 0.007% 45.840% 21.786% 0.196% 10.489% 102.775%
23.131% 3.116% 0.000% 26.247% 0.007% 48.231% 27.565% 0.215% 10.911% 112.954%
23.762% 3.454% 0.000% 27.216% 0.007% 49.461% 27.762% 0.217% 11.483% 115.922%
24.458% 3.462% 0.000% 27.920% 0.007% 49.959% 27.556% 0.223% 12.051% 117.486%
22.477% 4.128% 0.000% 26.605% 0.006% 46.398% 27.344% 0.215% 11.100% 111.447%
23.223% 3.914% 0.000% 27.137% 0.006% 45.356% 34.898% 0.201% 11.254% 118.645%
24.348% 3.841% 0.082% 28.271% 0.000% 44.087% 34.798% 0.188% 11.057% 118.213%
24.187% 3.564% 0.098% 27.849% 0.000% 42.808% 30.972% 0.222% 10.667% 112.296%
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.
2018
2013
2014
2009
2010
2011
2012
2015
2016
2017
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 2,869,380$ 1 2.02% 3,497,098$ 1 2.85%
Galleria Shopping Center 2,666,013 2 1.88% 1,188,800 2 0.97%
Southdale Medical Building 1,370,553 3 0.97% 638,930 5 0.52%
Centennial Lakes Retail 998,708 4 0.70% 679,250 4 0.55%
Southdale Office Center 980,280 5 0.69% 910,362 3 0.74%
Centennial Lakes Phase V 779,680 6 0.55% 615,384 7 0.50%
Onyx Apartments 764,580 7 0.54% DNA DNA DNA
Centennial Lakes Phase IV 641,756 8 0.45% 603,462 8 0.49%
One Southdale Place Apartments 588,448 9 0.41% DNA DNA DNA
7700 France 547,949 10 0.39% DNA DNA DNA
National Car DNA DNA 631,752 6 0.52%
Macy's Department Stores DNA DNA 520,174 9 0.42%
Target DNA DNA 510,186 10 0.42%
Totals 12,207,347$ 8.60% 9,795,398$ 7.99%
Source: City of Edina Assessing Office
DNA: Data is not available
20092018
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
24,153,933$ 23,484,137$ 97.23% 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% (201,500) 26,344,484 98.49%
27,454,872 27,326,092 99.53% (47,808) 27,278,284 99.36%
29,700,010 29,497,362 99.32% (87,189) 29,410,173 99.02%
31,799,123 31,383,415 98.69% 31,058 31,414,473 98.79%
33,822,369 33,645,085 99.48% (31,738) 33,613,347 99.38%
35,784,777 35,551,096 99.35% - 35,551,096 99.35%
Source: Hennepin County Taxpayer Services.
2018
Collected within the
Fiscal Year of the Levy
2012
2009
2010
2011
2016
2015
2017
Total Collections to Date
Taxes
Payable
2013
2014
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
a Capita a
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 3.84% 2,545
20,115 18,434 - 26,415 13 14,696 36,768 116,441 3.35% 2,218
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
All figures are presented net of related premiums, discounts, and adjustments if applicable.
a Population and personal income data from U.S. Census Bureau/Metropolitan Council found on page 133.
Business-Type Activities
Year
Fiscal
2018
2009
2010
2011
2012
2015
2016
2013
2014
2017
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 d
24,057$ 5,454$ 18,603$ 0.18% 386$
32,595 6,105 26,490 0.27% 553
30,417 8,068 22,349 0.24% 463
28,318 9,704 18,614 0.20% 381
32,035 6,247 25,788 0.29% 524
30,806 12,678 18,128 0.20% 361
27,225 7,135 20,090 0.20% 396
28,560 11,187 17,373 0.17% 335
31,748 17,001 14,747 0.14% 281
20,115 7,872 12,243 0.11% 233
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
a Presented net of related premiums, discounts, and adjustments.
b This is the amount restricted for debt service principal payments.
c See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for
estimated property value data.
d Population from U.S. Census Bureau/Metropolitan Council found on page 133.
Year
Fiscal
2013
2018
2016
2015
2014
2009
2010
2011
2012
2017
129
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2018
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 1,056,890,798$ 7.87% 83,177,306$
Hennepin Suburban Park District 43,575,708 10.98% 4,784,613
Hennepin Regional Rail Authority 24,600,380 10.98% 2,701,122
School Districts:
ISD No. 273 (Edina) 173,510,411 98.61% 171,098,616
ISD No. 270 (Hopkins) 178,684,351 7.56% 13,508,537
ISD No. 271 (Bloomington) 72,560,061 0.02% 14,512
ISD No. 272 (Eden Prairie) 51,264,311 0.97% 497,264
ISD No. 280 (Richfield) 134,390,184 29.34% 39,430,080
ISD No. 283 (St. Louis Park) 120,593,922 0.01% 12,059
Metro Council 75,902,689 3.74% 2,838,761
Total Overlapping Debt 1,931,972,815 318,062,870
City of Edina 64,977,316 100.00% 64,977,316
Total Overlapping and Direct Debt 1,996,950,131$ 383,040,186$
Ratio of debt per capita (52,497 population) 7,296$
Ratio of debt to estimated market valuation of $11,655,317,800 3.29%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
130
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt limit 301,369$ 298,494$ 282,958$ 270,767$ 263,958$ 267,351$ 291,050$ 308,890$ 323,556$ 346,426$
Total net debt
applicable
to limit 46,670 45,170 42,860 39,545 37,030 51,760 48,000 48,325 50,115 37,595
Legal debt
margin 254,699$ 253,324$ 240,098$ 231,222$ 226,928$ 215,591$ 243,050$ 260,565$ 273,441$ 308,831$
Total net debt
applicable to
the limit as a
percentage of
debt limit 15.49% 15.13% 15.15% 14.60% 14.03% 19.36% 16.49% 15.64% 15.49% 10.85%
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
346,425,592
18,440,000
308,830,592$
Fiscal Year
11,547,519,732$
19,155,000
37,595,000
Legal Debt Margin Calculation for Fiscal Year 2018
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)
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
2018 2,507,700 - 2,507,700 1,045,000 607,148 1,652,148 1.52
Tax Increment Bonds
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 - - - -
2018 4,997,706 - 4,997,706 - - - -
Permanent Improvement Revolving Bonds (Special Assessment)
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
2018 4,121,203 - 4,121,203 2,480,000 746,023 3,226,023 1.28
Utility Bond
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
2018 22,757,745 17,411,983 5,345,762 4,980,000 1,049,101 6,029,101 0.89
Recreational Facility Bonds
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)
2018 5,019,374 6,069,584 (1,050,210) 2,197,000 494,192 2,691,192 (0.39)
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 2,582,436$ 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%
52,497 3,477,821 66,248 97.9% 2.83%
52,497 3,477,821 66,248 98.0% 2.26%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2017 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. 2017 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.
2018
2015
2016
Fiscal
Year
2014
2013
2012
2011
2010
2009
2017
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 1,825 1 7.11% 2,500 2 11.68%
Edina Public Schools ISD #273 1,450 2 5.65% 1,172 4 5.48%
City of Edina 1,100 3 4.29% 262 7 1.22%
BI Worldwide 550 4 2.14% DNA DNA DNA
Minnesota Garage Door Experts 500 5 1.95% DNA DNA DNA
Lund Food Holdings, Inc 500 6 1.95% DNA DNA DNA
Regis Corporation 460 7 1.79% DNA DNA DNA
Edina Realty 400 8 1.56% 210 9 0.98%
International Dairy Queen Inc. 400 9 1.56% 300 6 1.40%
Dow Water & Process Solutions 375 10 1.46% DNA DNA DNA
Jerry's Enterprises, Inc. DNA DNA DNA 4,500 1 21.02%
Macy's (Marshall Field's or Dayton's) DNA DNA DNA 1,200 3 5.61%
Nash Finch Co. DNA DNA DNA 350 5 1.64%
JC Penny Co. DNA DNA DNA 250 8 1.17%
Con Agra Foods DNA DNA DNA 196 10 0.92%
Totals 7,560 29.47% 10,940 51.11%
Sources:
2018 data from ReferenceUSA, written and telephone survey (May 2018) done by Ehlers,
and the Minnesota Department of Employment and Economic Development.
2009 data from previous CAFR.
DNA: Data is not available
20092018
Employer
134
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 b 2013 b 2014 b 2015 2016 b 2017 b 2018
Administration
General Fund 9.25 9.25 9.25 6.85 5.85 4.85 4.85 5.00 5.00 5.00
HRA Fund - - - - - 1.00 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
CAS Fund - - - - - - - 1.00 1.00 1.00
Communications and Technology Services
General Fund 3.00 3.00 3.50 4.65 5.15 6.15 6.15 6.00 6.00 6.00
Central Services 3.00 3.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00
Community Development
General Fund 10.85 10.85 10.85 10.85 10.85 12.00 12.00 12.00 12.00 12.00
Engineering
General Fund 8.50 8.50 8.50 10.50 12.00 10.00 11.00 11.00 11.00 12.00
PACS Fund - - - - - 1.00 1.00 1.00 1.00 1.00
Utilities Fund - - - - - 1.00 1.00 1.00 1.00 1.00
Finance
General Fund 5.50 5.50 5.25 5.25 5.25 6.00 6.00 5.00 5.00 6.00
Utilities Fund 2.75 2.75 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00
Liquor Fund 0.75 0.75 0.75 0.75 0.75 - - - - -
Fire Protection
General Fund 40.50 40.50 39.50 39.75 42.75 42.85 43.85 45.90 45.90 45.80
Utilities Fund 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 5.00
Parks & Recreation
General Fund 23.20 23.20 23.20 23.20 24.40 23.65 23.65 25.05 25.05 25.30
Aquatic Center 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.60 0.60 0.70
Golf Course 13.00 13.00 11.00 12.00 12.00 12.00 12.00 8.05 8.05 9.00
Arena 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.85 4.85 6.25
Sports Dome - - - - - - - 0.15 0.15 1.00
Art Center 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park 7.00 7.00 7.00 7.00 5.80 5.80 5.80 5.80 5.80 5.65
Centennial Lakes 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.05
Police Protection
General Fund 74.65 73.65 71.15 71.65 70.65 72.50 70.50 72.55 72.55 76.55
Utilities Fund 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.45 0.45 0.45
Public Works
General Fund 31.00 31.00 30.80 31.80 30.00 26.70 26.70 25.40 25.40 23.30
Construction Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.10 1.10 1.10
Utilities Fund 15.25 15.25 14.45 13.95 13.75 15.20 15.20 16.85 16.85 18.65
Central Services 8.50 8.50 8.50 8.50 8.50 11.00 11.00 10.25 10.25 10.20
Other 1.00 1.00 - - - - - - - -
Total 281.00 280.00 274.00 278.00 281.00 285.00 285.00 287.00 287.00 297.00
Source: City of Edina 2018-2019 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 700-800 people in these categories.
b The City completed departmental reorganizations that are reflected on this chart between years 2012-2014 and
2016-2017. 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
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Government
Total City employees 885 869 892 989 1,040 1,093 1,077 1,155 1,067 1,136
Votes cast a 2,733 25,463 7,957 31,841 3,480 24,049 9,370 31,986 11,440 30,774
Public Works
Asphalt placed (tons) 9,500 7,643 8,500 9,000 9,273 8,383 8,888 9,298 11,176 14,419
Concrete (cu. yds.) 640 503 558 667 560 396 670 897 708 868
Public Safety
Crimes reported 1,985 1,890 1,590 1,628 1,594 1,571 2,015 2,143 2,431 N/A
Fire calls 852 910 960 858 893 926 1,251 1,276 1,220 1,321
Medical calls 3,496 3,599 3,652 3,946 3,803 3,982 3,818 4,063 4,508 4,572
Central Services
Vehicle fixes 2,539 2,431 2,331 2,546 3,493 3,277 2,923 2,721 2,478 2,336
Utilities
Daily consumption b 7,596 6,790 6,909 7,613 6,652 6,489 6,308 6,047 5,950 6,101
Aquatic Center
Attendance 64,836 86,654 77,696 139,909 91,340 92,200 128,523 108,609 89,318 88,342
Golf Course
Total rounds played c 117,819 101,314 95,771 96,496 79,529 85,231 66,483 61,256 23,241 20,679
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.
c 27-hole golf course was closed and reconstructed into an 18-hole championship course from 2017-2018
Fiscal Year
Function
136
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 18 18 18 18 18 18 18 18
Watermain miles 199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles 186 186 186 186 186 186 186 186 186 186
Sewer connections 13,933 13,933 13,933 13,979 13,979 13,979 13,979 13,979 13,979 13,979
Arena
Ice sheets 3 3 3 3 3 3 4 4 4 4
Source: Various City departments
Fiscal Year
Function
137
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138
CITY OF EDINA
4801 West 50th Street
Edina, Minnesota 55424
EdinaMN.gov
952-826-0366