HomeMy WebLinkAbout2019 Comprehensive Annual Financial Report
COMPREHENSIVE
ANNUAL
FINANCIAL
REPORT
CITY OF EDINA, MINNESOTA
Fiscal Year Ended December 31, 2019
CITY OF EDINA, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED DECEMBER 31, 2019
Prepared by:
Department of Finance
Donald Uram – Finance Director
Kyle Sawyer – Assistant Finance Director
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
YEAR ENDED DECEMBER 31, 2019
INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 4
Organization 5
Organization Chart 6
FINANCIAL SECTION
Independent Auditors’ Report 7
Management’s Discussion and Analysis 10
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 22
Statement of Activities 23
Fund Financial Statements
Balance Sheet – Governmental Funds 25
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position 26
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds 27
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 28
Statement of Net Position – Proprietary Funds 29
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds 30
Statement of Cash Flows – Proprietary Funds 31
Statement of Fiduciary Net Position – Agency Funds 33
Notes to Financial Statements 34
Required Supplementary Information
Budgetary Comparison Schedules
Budgetary Comparison Schedule – General Fund 73
Budgetary Comparison Schedule – Housing and Redevelopment Authority
(HRA) Fund 76
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2019
Other Postemployment Benefits Plan Schedule of Changes in the City’s Total
OPEB Liability and Related Ratios 77
Defined Benefit Pension Plans GERF/PEPFF Retirement Funds 78
GERF Schedule of City’s and Nonemployer Proportionate Share of Net
Pension Liability and Schedule of City Contributions 78
PEPFF Schedule of City’s Proportionate Share of Net Pension Liability and
Schedule of City Contributions 79
Notes to Required Supplementary Information 80
Combining and Individual Fund Financial Statements and Schedules
Combining Balance Sheet – Nonmajor Governmental Funds 86
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds 87
Special Revenue Fund – Community Development Block Grant
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 88
Special Revenue Fund – Police
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 89
Special Revenue Fund – Braemar Memorial
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 90
Special Revenue Fund – Pedestrian and Cyclist Safety
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 91
Special Revenue Fund – Arts and Culture
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 92
Special Revenue Fund – Conservation and Sustainability
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 93
Capital Projects Fund – Environmental Efficiency
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 94
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2019
Major Governmental Fund – Debt Service
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 95
Major Governmental Fund – Construction Capital Projects
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual 96
Combining Statement of Net Position – Nonmajor Proprietary Funds 97
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position – Nonmajor Proprietary Funds 98
Combining Statement of Cash Flows – Nonmajor Proprietary Funds 99
Combining Statement of Changes in Assets and Liabilities – Agency Funds 100
Supplementary Financial Information 101
Tax Capacity, Tax Levies, and Tax Capacity Rates 101
Combining Schedule of Bonded Indebtedness 102
Schedule of Balance Sheet Accounts – Tax Increment Financing Districts 104
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Tax
Increment Financing Districts 105
STATISTICAL SECTION (UNAUDITED)
Financial Trends
Net Position by Component 106
Changes in Net Position 108
Fund Balances of Governmental Funds 110
Changes in Fund Balances of Governmental Funds 112
Revenue Capacity 114
Assessed Value, Actual Value, and Tax Capacity of Taxable Property 114
Direct and Overlapping Tax Capacity Rates 115
Principal Property Tax Payers 116
Property Tax Levies and Collections 117
Debt Capacity 118
Ratios of Outstanding Debt by Type 118
Ratios of General Bonded Debt Outstanding 119
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 2019
Direct and Overlapping Governmental Activities Debt 120
Legal Debt Margin Information 121
Pledged Revenue Coverage 122
Demographic and Economic Information 123
Demographic and Economic Statistics 123
Principal Employers 124
Operating Information
Full-Time Equivalent City Government Employees by Function 125
Operating Indicators by Function 126
Capital Asset Statistics by Function 127
(1)
June 8, 2020
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, 2019.
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.
CliftonLarsonAllen, LLP, 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, 2019. The independent auditors’ report is
located at the front of the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditors’ report and
provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A
complements this letter of transmittal and should be read in conjunction with it.
Profile of the City
The City, 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
nonpartisan basis. The Council is responsible, among other things, for passing ordinances, adopting the budget,
appointing committees, and hiring the City Manager. The City Manager is responsible for carrying out the policies
and ordinances of the Council, for overseeing the day-to-day operations of the city government, and for
appointing the heads of the various departments. Council members serve four-year terms, with two Council
members elected every two years. The Mayor also serves a four-year term. The Council and Mayor are elected at
large.
The City provides a full range of services, including police 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 last plan was adopted in 2009. 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 2019. A final version is expected to be adopted by the City Council in 2020.
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 $16,411,412 unassigned fund balance in the general fund. This amount is $1,361,429
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, 2018. This was the ninth consecutive year that the government has
achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized 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
(4)
CITY OF EDINA, MINNESOTA
ORGANIZATION
DECEMBER 31, 2019
(5)
Term Expires
Mayor:
James Hovland December 31, 2020
Council Members:
Mary Brindle December 31, 2020
Mike Fischer December 31, 2020
Kevin Staunton December 31, 2021
Ron Anderson December 31, 2021
City Manager:
Scott Neal Appointed
Finance Director/Treasurer:
Donald Uram Appointed
City Clerk:
Sharon Allison Appointed
(6)
(7)
INDEPENDENT AUDITORS’ REPORT
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, 2019, 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.
Auditors’ 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.
City Council and Management
City of Edina, Minnesota
(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, 2019,
and the respective changes in financial position and, where applicable, cash flows thereof, for the year
then ended, in accordance with accounting principles generally accepted in the United States of
America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and the required supplementary information (RSI), as listed in
the table of contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the RSI in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The introductory section, combining and
individual fund financial statements and schedules, supplementary financial information, and statistical
section, as listed in the table of contents, are presented for purposes of additional analysis and are not
required parts of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining and individual fund financial statements and schedules
are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section, supplementary financial information, and statistical section have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
City Council and Management
City of Edina, Minnesota
(9)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
June 8, 2020 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
CliftonLarsonAllen LLP
Minneapolis, Minnesota
June 8, 2020
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CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(10)
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, 2019. 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 $289,208,409 (net position).
Of this amount, $58,861,920 (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 $15,153,190 from current year operations. Of that
total, $11,922,200 is the increase in Governmental Activities net position and $3,230,900 is the
increase in Business-Type Activities net position.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $67,513,935, an increase of $5,250,678 from the prior year. The
increase can primarily be attributed to the general obligation bond, series 2019A, that was
issued in 2019 in the amount of $5,799,080 (including issuance premium).
At the end of the current fiscal year, unassigned fund balance for the general fund was
$16,411,412 or 38% of total general fund expenditures.
The City’s total bonded debt decreased by $1,497,476 during the current fiscal year, from
$112,016,476. The City issued new debt during the year consisting of $10,815,000 general
obligation bonds to finance construction of various public street improvement projects, the
construction of various utility system improvements, and the acquisition of public safety capital
equipment.
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.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(11)
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 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 nonmajor governmental funds are provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all governmental and proprietary funds. A
budgetary comparison statement has been provided for all governmental funds to demonstrate
compliance with these budgets.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(12)
Proprietary funds. The City maintains five major enterprise funds and one internal service
fund. Enterprise funds are used to report the same functions presented as business-type
activities in the governmental-wide financial statements. The City’s major enterprise funds are
used to account for its utility, liquor, aquatic center, golf course, and arena operations.
Data from the other enterprise funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor enterprise funds are provided in the form of
combining statements elsewhere in this report.
Proprietary funds provide the same type of information as the government-wide financial
statements, only in more detail.
Internal service funds. Internal service funds are used as an accounting device to accumulate
and allocate costs internally among the City’s various functions. The City 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 nonmajor 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 $289,208,409 at the close of the most recent fiscal year.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(13)
The largest portion of the City’s net position ($191,122,918 or 66%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City’s investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
City of Edina’s Net Position
2019 2018 2019 2018 2019 2018
Assets:
Current and
Other Assets 102,772,182$ 94,235,554$ 41,566,836$ 39,131,188$ 144,339,018$ 133,366,742$
Capital Assets 177,046,643 171,961,244 132,455,693 131,270,232 309,502,336 303,231,476
Total Assets 279,818,825$ 266,196,798$ 174,022,529$ 170,401,420$ 453,841,354$ 436,598,218$
Deferred Outflows of Resources:
OPEB Plan Deferments $ 198,552 $ 202,183 $ 14,361 $ 14,635 $ 212,913 $ 216,818
Pension Plan Deferments 10,433,540 14,052,021 403,276 865,438 10,836,816 14,917,459
Total Deferred Outflows
of Resources $ 10,632,092 $ 14,254,204 $ 417,637 $ 880,073 $ 11,049,729 $ 15,134,277
Liabilities:
Long-Term Liabilities
Outstanding 85,067,742$ 83,842,411$ 51,218,382$ 49,979,000$ 136,286,124$ 133,821,411$
Other Liabilities 14,266,374 13,420,763 8,488,312 9,449,610 22,754,686 22,870,373
Total Liabilities 99,334,116$ 97,263,174$ 59,706,694$ 59,428,610$ 159,040,810$ 156,691,784$
Deferred Inflows of Resources:
OPEB Plan Deferments 148,823$ -$ 11,202$ -$ 160,025$ -$
Pension Plan Deferments 15,617,659 19,759,709 864,180 1,225,783 16,481,839 20,985,492
Total Deferred Inflows
of Resources 15,766,482$ 19,759,709$ 875,382$ 1,225,783$ 16,641,864$ 20,985,492$
Net Position:
Net Investment in
Capital Assets 110,670,335$ 107,133,225$ 80,452,583$ 81,980,815$ 191,122,918$ 189,114,040$
Restricted 36,999,647 25,017,586 1,360,336 1,360,336 38,359,983 26,377,922
Unrestricted 27,680,337 31,277,308 32,045,171 27,285,949 59,725,508 58,563,257
Total Net Position 175,350,319$ 163,428,119$ 113,858,090$ 110,627,100$ 289,208,409$ 274,055,219$
Governmental Activities Business-Type Activities Total
A portion of the City’s net position ($38,359,983) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position ($59,725,508)
may be used to meet the City’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all of the categories of
net position reported, both for the government as a whole, as well as for its separate governmental and
business-type activities. The same situation held true for the prior fiscal year.
There was an increase of $1,162,251 in unrestricted net position.
The decrease in deferred outflows of resources relates to the changes in the City’s share of state
pension plan amounts while the increase in long-term liabilities is the result of newly issued debt in
2019, partially offset by regularly scheduled payments on the City’s outstanding bonds.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(14)
As shown below, the City’s net position increased by $15,153,190 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina’s Changes in Net Position
2019 2018 2019 2018 2019 2018
Revenues:
Program Revenues:
Charges for Services 12,217,896$ 13,577,083$ 45,119,284$ 44,426,345$ 57,337,180$ 58,003,428$
Operating Grants and
Contributions 4,271,243 4,028,247 44,953 545,682 4,316,196 4,573,929
Capital Grants and
Contributions 6,625,040 6,695,172 692,281 - 7,317,321 6,695,172
General Revenues:
Property Taxes 37,133,269 35,616,432 - - 37,133,269 35,616,432
Other Taxes 8,352,953 7,582,447 - - 8,352,953 7,582,447
Gain on Disposal
of Assets 408,659 5,032,815 - - 408,659 5,032,815
Unrestricted Investment
Earnings 2,037,306 901,405 1,064,942 481,754 3,102,248 1,383,159
Total Revenues 71,046,366 73,433,601 46,921,460 45,453,781 117,967,826 118,887,382
Expenses:
General Government 11,252,538 10,964,266 - - 11,252,538 10,964,266
Public Safety 22,485,722 20,971,184 - - 22,485,722 20,971,184
Public Works 15,990,021 14,170,463 - - 15,990,021 14,170,463
Parks 7,554,919 7,235,405 - - 7,554,919 7,235,405
Interest on Long-Term Debt 1,999,318 1,726,901 - - 1,999,318 1,726,901
Utilities - - 19,303,212 18,045,516 19,303,212 18,045,516
Liquor - - 11,970,986 11,995,159 11,970,986 11,995,159
Aquatic Center - - 979,376 996,671 979,376 996,671
Golf Course - - 4,009,097 2,464,563 4,009,097 2,464,563
Arena - - 2,982,674 2,996,844 2,982,674 2,996,844
Community Activity
Centers - - 4,286,773 4,096,452 4,286,773 4,096,452
Total Expenses 59,282,518 55,068,219 43,532,118 40,595,205 102,814,636 95,663,424
Increase in Net Position
Before Transfers 11,763,848 18,365,382 3,389,342 4,858,576 15,153,190 23,223,958
Transfers 158,352 305,428 (158,352) (305,428) - -
Change in Net Position 11,922,200 18,670,810 3,230,990 4,553,148 15,153,190 23,223,958
Net Position - January 1 163,428,119 144,757,309 110,627,100 106,073,952 274,055,219 250,831,261
Net Position - December 31 175,350,319$ 163,428,119$ 113,858,090$ 110,627,100$ 289,208,409$ 274,055,219$
Governmental Activities Business-Type Activities Total
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(15)
GOVERNMENTAL ACTIVITIES
Governmental activities increased the City’s net position by $11,922,200, accounting for 79% of the
total growth in net position. Key elements of the increase are as follows.
Charges for services decreased by $1,359,187, or 10% in 2019. This is due primarily to a
reduction in building and other permit fees.
Property taxes increased by $1,516,837 as the result of an increased general operating levy
that provides funding to continue existing service levels.
Other taxes increased by $770,506 due to an increase in tax increment collections from the
Southdale 2 tax increment financing district and utility franchise fee rate increases.
Investment earnings increased by $1,135,901, or 126% in 2019 due to increased interest rates.
Gain on disposal of assets decreased $4,624,156 due to the sale of land in the 50th and France 2
TIF district that is being redeveloped for mixed use, in the prior year.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(16)
BUSINESS-TYPE ACTIVITIES
Business-type activities increased net position by $3,230,990, accounting for 21% 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 $3,994,597 for 2019. 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 $1,190,725 for 2019. Most of
the additional equity is used to subsidize operations at other enterprise facilities and for capital
improvements at the three city owned liquor stores.
The golf course fund had a loss before contributions and transfers of $579,761 for 2019. This is
partially due to the increased expenses associated with opening the new championship 18-hole
course in 2019 and the extreme wet weather causing a reduction in expected revenues.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(17)
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 $67,513,935, an increase of $5,250,678 in comparison with the prior year. Approximately
24% of this total amount ($16,411,412) constitutes unassigned fund balance. The remainder of the fund
balance is 1) restricted by external creditors, grantors, laws, or regulations ($27,053,111), or 2) assigned
by internal constraints ($24,021,009), or 3) nonspendable in the form of prepaid items ($28,403).
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 $16,411,412. As a measure of the general fund’s liquidity,
unassigned fund balance represents 38% of total general fund expenditures.
The fund balance of the City’s general fund decreased by $1,288,064 during the current fiscal year. Key
factors related to this decrease include:
Total general fund revenues were $1,889,329 over budget, including higher than expected
building permit activity, investment income and ambulance service collections. Investment
income increased by over 100% due to the increase in short-term rates.
Total general fund expenditures were $35,977 under budget.
The liquor fund transferred $50,000 of profits to the general fund, as planned in the 2019
budget.
Transfers out of the general fund totaled $3,388,864 related to the 2018 unassigned fund
balance transferred to fund various projects including the acquisition of a new Enterprise
Resource Planning system and a transfer of Park Dedication funds to help pay for Arden Park.
The Housing and Redevelopment Authority fund balance increased by $3,127,853 in the current fiscal
year due to the sale of a retail pad constructed as part of the expansion of the north parking ramp in the
50th and France 2 TIF district, higher than anticipated investment income and tax increment collections
in the Southdale 2 and Pentagon Park districts.
The debt service fund has a total fund balance of $8,341,996, all of which is restricted for the payment
of debt service. The net increase in fund balance during the current year in the debt service fund was
$470,138. Fund balance increased as the result of a $3,100,000 transfer in from the construction fund
to pay debt service. This transfer is made annually with the amount varying slightly depending on
available resources.
The construction fund balance increased by $2,200,906 in 2019 due to transfers in of $3,588,864;
$2,458,564 of the transfer is from the 2018 general fund surplus and $930,300 is from Park Dedication.
In addition, new debt was issued in 2019 to help finance various street improvement projects and
property tax revenue increased as budgeted. Lastly, of the 2016 and 2017 general fund surplus
transfers, $2,048,902 remains to be spent.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(18)
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 $27,496,800. The total
growth in net position from current year operations was $3,633,097. Operating revenues in the utilities
fund decreased by 4.0% while expenses increased by 6.0% in 2019. The revenue increase was due to
an increase in the water, sewer, and storm rates. Expenses increased because of higher depreciation
expenses related to infrastructure projects completed in recent years, along with increased fees set by
the Metropolitan Council for sewer service. The City invested $8,250,321 in utility fund capital assets
during 2019.
Unrestricted net position of the liquor fund at the end of the year amounted to $1,763,922. Total net
position increased by $343,015 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 $850,000 to other funds during
2019.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $805,127.
Aquatic center revenues decreased by $949 from 2018. Expenses decreased by 1.9% from 2018 due
to reduced personnel costs resulting from weather closures and a decrease in depreciation expense.
Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of
($910,127) an increase of $44,068 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 championship course opened
in 2019 and continued increases to net position are expected.
Unrestricted net position of the arena fund at the end of the year amounted to $308,096, an
improvement of $311,225 from the prior year. Revenues decreased by $109,359 due to a slight
decrease in “prime” ice utilization while expenses decreased by $26,360 due to a reduction in
personnel costs based on improved staff scheduling and overall management.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there was a $2,458,564 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 and a transfer of Park Dedication Funds.
During the year, revenues were $1,889,329 more than budget, as the continued commercial and
residential redevelopment of the City increased our licenses and permits, which exceeded budget by
$395,564. Intergovernmental revenue exceeded budget by $331,467 as a result of receiving
miscellaneous state grants and police and fire aid. In addition, Charges for Services revenue exceeded
budget by $669,182 due primarily to the collection of delayed ambulance revenue. Investment income
also exceeded budget by $510,274.
During the year, expenditures were slightly under budget by $35,977. Savings in public works and
parks helped offset the increase in costs in other departments due to increased staffing and other
personnel related costs.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(19)
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, 2019, amounted to $309,502,336 (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 2.1% (a 3% increase for governmental activities and a 0.9% increase for
business-type activities).
Major capital asset events during the current fiscal year included the following:
The City completed construction on the new 18-hole championship golf course; total
construction cost was $ 6,819,706.
A variety of street construction, sidewalk and park projects; construction in progress as of the
close of the fiscal year reached $8,328,757.
A variety of utility infrastructure improvements, including water main, sanitary and storm sewer,
construction in progress as of the close of the fiscal year reached $ 8,332,765 in the utility fund.
The City completed the Minnehaha Trunk Sewer Rehab project; total construction cost was
$1,349,895.
The City purchased land for affordable housing at 4100 W 76th St. for $2,893,443.
City of Edina’s Capital Assets
(Net of Depreciation)
2019 2018 2019 2018 2019 2018
Land and Land
Improvements 30,018,596$ 27,745,212$ 4,330,571$ 4,717,671$ 34,349,167$ 32,462,883$
Easements 253,000 253,000 35,600 35,600 288,600 288,600
Buildings and Structures 37,231,178 38,473,420 25,776,295 20,495,352 63,007,473 58,968,772
Machinery and Equipment 7,897,025 6,109,270 5,832,585 6,085,782 13,729,610 12,195,052
Infrastructure 84,022,848 73,334,806 88,071,369 86,488,485 172,094,217 159,823,291
Parks 9,295,239 10,006,261 - - 9,295,239 10,006,261
Construction in Progress 8,328,757 16,039,275 8,409,273 13,447,342 16,738,030 29,486,617
Total 177,046,643$ 171,961,244$ 132,455,693$ 131,270,232$ 309,502,336$ 303,231,476$
Governmental Activities Business-Type Activities Total
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 $110,519,000, a decrease of $1,497,476 from 2018. This decrease resulted from
payment of regularly scheduled principal payments, partially offset by $10,815,000 of new debt issued.
$19,905,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount increased from 2018 due to new debt issued of $2,805,000 being
partially offset by regularly scheduled principal payments.
$25,105,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s street
reconstruction program. This amount decreased from 2018 due to regularly scheduled principal
payments partially offset by newly issued debt of $2,195,000.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(20)
Also outstanding is $17,360,000 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 from 2018 due to regularly scheduled principal payments.
There is a total of $48,149,000 in revenue bonds for improvements to the enterprise funds. This amount
decreased $719,000 during the year due to $5,815,000 in issued debt offset by $6,534,000 in regularly
scheduled principal payments.
City of Edina’s Outstanding Debt
2019 2018 2019 2018 2019 2018
General Obligation Bonds 19,905,000$ 19,155,000$ -$ -$ 19,905,000$ 19,155,000$
Public Improvement Bonds 25,105,000 25,540,000 - - 25,105,000 25,540,000
Public Project Revenue Bonds 17,360,000 18,440,000 - - 17,360,000 18,440,000
Edina Emerald Energy Program Bonds - 13,476 - - - 13,476
Revenue Bonds - - 48,149,000 48,868,000 48,149,000 48,868,000
Total 62,370,000$ 63,148,476$ 48,149,000$ 48,868,000$ 110,519,000$ 112,016,476$
Governmental Activities Business-Type Activities Total
The City maintains an Aaa rating from Moody’s and an AAA rating from Standard & Poor’s.
State statutes limit the amount of general obligation debt a Minnesota city may issue up to 3% of total
Estimated Market Value. The current debt limitation for the City is $368,150,179. 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 2019 was 2.2%, 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.
CITY OF EDINA, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED DECEMBER 31, 2019
(21)
Property values in Edina decreased for several years from 2009-2012 and have risen each year since.
Estimated market value of real estate increased 4.0% for taxes payable in 2019.
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 4.2% for taxes payable in 2019 and remained
positive for the seventh consecutive year.
All these factors above were considered in preparing the City’s budget for the 2020 fiscal year. The
City’s adopted 2020 budget includes a property tax levy of $39,659,543 for all funds, an increase of
6.0% from the 2019 levy, with the increase being attributed to increased levies for the City’s equipment
replacement expenditures, HRA operating expenditures, and general operating levy.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all those with an
interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual Financial
Report can also be found on the internet at www.edinamn.gov.
(This page left blank intentionally.)
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(22)
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:
Cash and Investments 70,331,869$ 32,790,578$ 103,122,447$
Restricted Cash and Investments 269,369 - 269,369
Accrued Interest 187,422 92,029 279,451
Accounts Receivable, Net 2,705,216 5,975,015 8,680,231
Special Assessments Receivable 22,824,309 331,548 23,155,857
Due from Other Governments 3,006,692 8,245 3,014,937
Prepaid Items 176,952 514,601 691,553
Inventory - 1,854,820 1,854,820
Total Current Assets 99,501,829 41,566,836 141,068,665
Noncurrent Assets:
Investment in Joint Powers Agreement 1,770,353 - 1,770,353
Loans Receivable 1,500,000 - 1,500,000
Nondepreciable Capital Assets 32,696,875 13,768,283 46,465,158
Depreciable Capital Assets (Net) 144,349,768 118,687,410 263,037,178
Total Noncurrent Assets 180,316,996 132,455,693 312,772,689
Total Assets 279,818,825 174,022,529 453,841,354
DEFERRED OUTFLOWS OF RESOURCES
OPEB Plan Deferments 198,552 14,361 212,913
Defined Benefit Pension Plans 10,433,540 403,276 10,836,816
Total Deferred Outflows of Resources 10,632,092 417,637 11,049,729
LIABILITIES
Current Liabilities:
Accounts Payable 2,712,299 1,029,418 3,741,717
Salaries Payable 1,051,850 211,987 1,263,837
Accrued Interest Payable 863,588 712,473 1,576,061
Contracts Payable 597,707 350,215 947,922
Due to Other Governments 23,151 187,581 210,732
Deposits Payable 1,386,687 - 1,386,687
Unearned Revenue 171,674 277,867 449,541
Compensated Absences Payable 1,594,418 262,771 1,857,189
Bonds Payable 5,865,000 5,456,000 11,321,000
Total Current Liabilities 14,266,374 8,488,312 22,754,686
Noncurrent Liabilities:
Total OPEB Liability 3,309,596 307,916 3,617,512
Net Pension Liability 19,452,918 4,319,414 23,772,332
Compensated Absences Payable 2,391,627 394,157 2,785,784
Bonds and Loans Payable, Net 59,913,601 46,196,895 106,110,496
Total Noncurrent Liabilities 85,067,742 51,218,382 136,286,124
Total Liabilities 99,334,116 59,706,694 159,040,810
DEFERRED INFLOWS OF RESOURCES
OPEB Plan Deferments 148,823 11,202 160,025
Defined Benefit Pension Plans 15,617,659 864,180 16,481,839
Total Deferred Inflows of Resources 15,766,482 875,382 16,641,864
NET POSITION
Net Investment in Capital Assets 110,670,335 80,452,583 191,122,918
Restricted for Tax Increments 14,676,453 - 14,676,453
Restricted for Affordable Housing 1,547,145 - 1,547,145
Restricted for Debt Service 9,664,560 1,360,336 11,024,896
Restricted for Pedestrian and Cyclist Improvements 492,057 - 492,057
Restricted for Highway Construction 2,449,459 - 2,449,459
Restricted for Parkland Dedication 58,086 - 58,086
Restricted for Police 713,658 - 713,658
Restricted for Braemar Golf Donations 123,682 - 123,682
Restricted for Arts and Culture Donations 47,077 - 47,077
Restricted for Conservation and Sustainability Initiatives 1,053,089 - 1,053,089
Unrestricted 33,854,718 32,045,171 65,899,889
Total Net Position 175,350,319$ 113,858,090$ 289,208,409$
Primary Government
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(23)
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
Functions/Programs
Primary Government:
Governmental Activities:
General Government 11,252,538$ 1,204,947$ 609,083$ -$
Public Safety 22,485,722 9,747,031 1,557,519 -
Public Works 15,990,021 436,124 2,006,631 6,625,040
Parks 7,554,919 829,794 98,010 -
Interest on Long-Term Debt 1,999,318 - - -
Total Government Activities 59,282,518 12,217,896 4,271,243 6,625,040
Business-Type Activities:
Utilities 19,303,212 21,875,655 - 692,281
Liquor 11,970,986 13,094,407 2,060 -
Aquatic Center 979,376 996,778 10,900 -
Golf Course 4,009,097 3,395,815 800 -
Arena 2,982,674 2,516,629 - -
Community Activity Centers 4,286,773 3,240,000 31,193 -
Total Business-Type Activities 43,532,118 45,119,284 44,953 692,281
Total Primary Government 102,814,636$ 57,337,180$ 4,316,196$ 7,317,321$
Program Revenues
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(24)
Governmental Business-Type
Activities Activities Total
(9,438,508)$ -$ (9,438,508)$
(11,181,172) - (11,181,172)
(6,922,226) - (6,922,226)
(6,627,115) - (6,627,115)
(1,999,318) - (1,999,318)
(36,168,339) - (36,168,339)
- 3,264,724 3,264,724
- 1,125,481 1,125,481
- 28,302 28,302
- (612,482) (612,482)
- (466,045) (466,045)
- (1,015,580) (1,015,580)
- 2,324,400 2,324,400
(36,168,339) 2,324,400 (33,843,939)
General Revenues:
Property Taxes 37,133,269 - 37,133,269
Tax Increment Collections 5,447,108 - 5,447,108
Franchise Taxes 2,881,726 - 2,881,726
Lodging Taxes 24,119 - 24,119
Unrestricted Investment Earnings 2,037,306 1,064,942 3,102,248
Gain on Disposal of Capital Assets 408,659 - 408,659
Transfers - Capital Assets (91,270) 91,270 -
Transfers - Internal Activities 249,622 (249,622) -
Total General Revenues and Transfers 48,090,539 906,590 48,997,129
Change in Net Position 11,922,200 3,230,990 15,153,190
Net Position - Beginning 163,428,119 110,627,100 274,055,219
Net Position - Ending 175,350,319$ 113,858,090$ 289,208,409$
Net (Expense) Revenue and
Changes in Net Position
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(25)
Housing and Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
ASSETS
Cash and Investments 20,804,809$ 14,781,752$ 8,052,231$ 22,791,225$ 2,040,512$ 68,470,529$
Restricted Cash and
Investments - - 269,369 - - 269,369
Accrued Interest 58,660 46,836 - 73,200 4,304 183,000
Accounts Receivable 693,835 80,531 - 1,137,642 540,859 2,452,867
Taxes Receivable 188,630 (483) 24,982 18,618 132 231,879
Special Assessments
Receivable - - 2,161,170 20,663,139 - 22,824,309
Due from Other Governments 375,208 11,731 23,396 2,569,276 15,294 2,994,905
Prepaid items 28,403 - - - - 28,403
Loans Receivable - 1,500,000 - - - 1,500,000
Total Assets 22,149,545$ 16,420,367$ 10,531,148$ 47,253,100$ 2,601,101$ 98,955,261$
LIABILITIES
Accounts Payable 863,290$ 63,616$ 3,000$ 1,734,633$ 40,536$ 2,705,075$
Salaries Payable 1,038,399 4,422 - 3,449 5,580 1,051,850
Contracts Payable - 15,731 - 456,554 125,422 597,707
Due to Other Governments 22,204 - - - - 22,204
Deposits Payable 1,386,687 - - - - 1,386,687
Unearned Revenue 58,674 113,000 - - - 171,674
Total Liabilities 3,369,254 196,769 3,000 2,194,636 171,538 5,935,197
DEFERRED INFLOWS OF
RESOURCES
Unavailable Revenue - Taxes 188,630 - 24,982 12,815 132 226,559
Unavailable Revenue -
Special Assessments - - 2,161,170 20,668,941 - 22,830,111
Unavailable Revenue - Other - - - 2,449,459 - 2,449,459
Total Deferred Inflows of
Resources 188,630 - 2,186,152 23,131,215 132 25,506,129
FUND BALANCE
Nonspendable 28,403 - - - - 28,403
Restricted 58,086 16,223,598 8,341,996 - 2,429,431 27,053,111
Assigned 2,093,760 - - 21,927,249 - 24,021,009
Unassigned 16,411,412 - - - - 16,411,412
Total Fund Balance 18,591,661 16,223,598 8,341,996 21,927,249 2,429,431 67,513,935
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balances 22,149,545$ 16,420,367$ 10,531,148$ 47,253,100$ 2,601,101$ 98,955,261$
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(26)
Total Fund Balances - Governmental Funds 67,513,935$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets are included in net position, but are excluded from fund balances because they do
not represent financial resources.
Cost of Capital Assets 320,584,106
Accumulated Depreciation (143,537,463)
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.
Bonds Payable (62,370,000)
Loans Payable (750,000)
Premium on Bonds (2,658,601)
Compensated Absences Payable (3,986,045)
Total OPEB Liability (3,309,596)
Net Pension Liability (19,452,918)
Accrued interest payable on long-term debt is included in net position, but is excluded from fund
balances until due and payable.(863,588)
Investment in joint powers agreement are not available to pay for current-period expenditures, and
therefore, are not reported in the funds.1,770,353
The recognition of certain revenues and expenditures differ between the full accrual governmental
activities financial statements and the modified accrual governmental fund financial statements.
Deferred Outflows - OPEB 198,552
Deferred Outflows - Pension 10,433,540
Deferred Inflows - OPEB (148,823)
Deferred Inflows - Pension (15,617,659)
Deferred Inflows - Property Taxes 226,559
Deferred Inflows - Special Assessments 22,830,111
Deferred Inflows - Other 2,449,459
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.2,038,397
Total Net Position - Governmental Activities 175,350,319$
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(27)
Housing and Nonmajor Total
Redevelopment Debt Governmental Governmental
General Authority Service Construction Funds Funds
REVENUES
General Property Taxes 29,743,751$ 158,923$ 4,565,604$ 2,604,796$ 20,000$ 37,093,074$
Tax Increment Collections - 5,447,108 - - - 5,447,108
Franchise Taxes 821,932 - - 72,724 1,987,070 2,881,726
Lodging Tax 24,119 - - - - 24,119
Special Assessments - - 271,018 4,470,539 - 4,741,557
License and Permits 5,109,994 - - 73,760 - 5,183,754
Intergovernmental 1,585,444 - - 1,802,211 299,965 3,687,620
Charges for Services 5,190,705 47,457 - 193,779 - 5,431,941
Fines and Forfeitures 988,254 - - - 108,868 1,097,122
Investment Income 630,274 499,356 1,571 816,797 41,883 1,989,881
Rental of Property 487,797 - - - - 487,797
Other Revenues 152,260 160,000 - 68,570 220,075 600,905
Total Revenues 44,734,530 6,312,844 4,838,193 10,103,176 2,677,861 68,666,604
EXPENDITURES
Current:
General Government 7,568,505 753,443 - 174,031 477,215 8,973,194
Public Safety 21,514,903 - - 46,020 140,331 21,701,254
Public Works 8,302,557 - - 473,397 222,814 8,998,768
Parks 5,413,259 - - 11,325 29,194 5,453,778
Capital Outlay:
General Government - 4,066,448 - 2,132,326 - 6,198,774
Public Safety - - - 3,449,492 12,926 3,462,418
Public Works - - - 5,369,985 932,723 6,302,708
Parks - - - 2,471,310 122,813 2,594,123
Debt Service:
Bond Principal - - 5,778,476 - - 5,778,476
Interest and Fiscal Charges - - 1,923,526 - - 1,923,526
Total Expenditures 42,799,224 4,819,891 7,702,002 14,127,886 1,938,016 71,387,019
REVENUES OVER (UNDER)
EXPENDITURES 1,935,306 1,492,953 (2,863,809) (4,024,710) 739,845 (2,720,415)
OTHER FINANCING
SOURCES (USES)
Transfers In 165,494 - 3,100,000 3,588,864 - 6,854,358
Transfers Out (3,388,864) - - (3,215,872) - (6,604,736)
Sale of Capital Assets - 884,900 - 287,491 - 1,172,391
Long-Term Loans Issued - 750,000 - - - 750,000
Bonds Issued - - 233,947 4,766,053 - 5,000,000
Premium on Bonds Issued - - - 799,080 - 799,080
Total Other Financing
Sources (Uses) (3,223,370) 1,634,900 3,333,947 6,225,616 - 7,971,093
NET INCREASE (DECREASE)
IN FUND BALANCE (1,288,064) 3,127,853 470,138 2,200,906 739,845 5,250,678
Fund balance - January 1, as Restated 19,879,725 13,095,745 7,871,858 19,726,343 1,689,586 62,263,257
FUND BALANCE - DECEMBER 31 18,591,661$ 16,223,598$ 8,341,996$ 21,927,249$ 2,429,431$ 67,513,935$
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(28)
Total Net Change in Fund Balances - Governmental Funds 5,250,678$
Amounts reported for governmental activities in the Statement of Activities are different because:
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.
Capital Outlays 15,727,542
Depreciation Expense (9,787,141)
Capital Assets Transferred to Business-Type Funds (91,270)
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 in fund balances.
Proceeds from the Sale of Capital Assets (1,172,391)
Gain on the Sale of Capital Assets 408,659
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.1,923,678
The amount of debt issued, principal as well as any issuance premiums or discounts, are 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.(6,549,080)
Repayment of long-term debt does not affect the change in net position. However, it reduces fund
balances.5,778,476
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.(45,111)
Debt issuance premiums and discounts are included in the change in net position as they are
amortized over the life of the debt. Amortization for the current year is included in interest
expense on the Statement of Activities. (30,681)
Pension and Other Postemployment Benefit (OPEB) expenditures in the governmental funds
are measured by current year employer contributions. Pension and OPEB expenses on the
Statement of Activities are measured by the change in the Net Pension Liability/Total OPEB
Liability and the related deferred inflows and outflows of resources.
Pension 24,671
OPEB (252,556)
In the governmental funds, compensated absences expenditures are measured by the amount
of financial resources used (amounts actually paid). In the Statement of Activities, however,
compensated absences expenses are measured by the amounts earned during the year.
Compensated Absences 124,924
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.611,802
Change in Net Position - Governmental Activities 11,922,200$
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(29)
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 23,528,150$ 1,876,930$ 2,170,718$ 201,386$ 842,957$ 4,170,437$ 32,790,578$ 1,861,340$
Interest Receivable 61,575 6,103 7,171 2,169 1,349 13,662 92,029 4,422
Accounts Receivable, Net 5,592,513 6,753 - 29,733 238,372 107,644 5,975,015 20,470
Special Assessments Receivable 331,548 - - - - - 331,548 -
Due from Other Governments 8,245 - - - - - 8,245 11,787
Prepaid Expenses 474,680 39,085 - 836 - - 514,601 148,549
Inventory 8,925 1,743,878 - 97,507 - 4,510 1,854,820 -
Total Current Assets 30,005,636 3,672,749 2,177,889 331,631 1,082,678 4,296,253 41,566,836 2,046,568
Noncurrent Assets:
Net Capital Assets 100,750,068 1,703,575 1,835,843 12,000,501 8,073,676 8,092,030 132,455,693 -
Total Assets 130,755,704 5,376,324 4,013,732 12,332,132 9,156,354 12,388,283 174,022,529 2,046,568
DEFERRED OUTFLOWS OF RESOURCES
OPEB Deferred Outflows 2,661 4,259 - 2,651 1,597 3,193 14,361 -
Pension Deferred Outflows 97,343 97,343 - 55,624 41,718 111,248 403,276 -
Total Deferred Outflows of Resources 100,004 101,602 - 58,275 43,315 114,441 417,637 -
LIABILITIES
Current Liabilities:
Accounts Payable 531,042 277,960 386 45,053 105,909 69,068 1,029,418 7,224
Salaries Payable 59,000 28,951 49 31,166 33,599 59,222 211,987 -
Accrued Interest Payable 538,502 - 11,500 127,399 35,072 - 712,473 -
Contracts Payable 286,231 - - 63,984 - - 350,215 -
Due to Other Governments 9,095 146,009 491 7,951 8,827 15,208 187,581 947
Unearned Revenue - 52,146 - 156,460 18,832 50,429 277,867 -
Compensated Absences Payable 57,725 73,294 - 58,802 17,605 55,344 262,771 -
Bonds Payable - Current 4,580,000 - 75,000 540,000 261,000 - 5,456,000 -
Total Current Liabilities 6,061,595 578,360 87,426 1,030,815 480,844 249,271 8,488,312 8,171
Noncurrent Liabilities:
Total OPEB Liability 73,676 67,714 - 67,620 34,211 64,695 307,916 -
Net Pension Liability 1,042,617 1,042,617 - 595,781 446,836 1,191,563 4,319,414 -
Compensated Absences Payable 86,588 109,942 - 88,204 26,408 83,016 394,157 -
Bonds Payable, Net of Unamortized
Discounts and Premiums 33,191,241 - 693,111 8,911,194 3,401,349 - 46,196,895 -
Total Noncurrent Liabilities 34,394,122 1,220,273 693,111 9,662,799 3,908,804 1,339,274 51,218,382 -
Total Liabilities 40,455,717 1,798,633 780,537 10,693,614 4,389,648 1,588,545 59,706,694 8,171
DEFERRED INFLOWS OF RESOURCES
OPEB Deferred Inflows 2,000 3,201 - 2,400 1,200 2,401 11,202 -
Pension Deferred Inflows 208,595 208,595 - 119,197 89,398 238,395 864,180 -
Total Deferred Inflows of Resources 210,595 211,796 - 121,597 90,598 240,796 875,382 -
NET POSITION
Net Investment in Capital Assets 62,692,596 1,703,575 1,067,732 2,485,323 4,411,327 8,092,030 80,452,583 -
Restricted for Debt Service - - 1,360,336 - - - 1,360,336 -
Unrestricted 27,496,800 1,763,922 805,127 (910,127) 308,096 2,581,353 32,045,171 2,038,397
Total Net Position 90,189,396$ 3,467,497$ 3,233,195$ 1,575,196$ 4,719,423$ 10,673,383$ 113,858,090$ 2,038,397$
Business-Type Activities - Enterprise Funds
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(30)
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
OPERATING REVENUES
Sales - Liquor -$ 12,880,335$ -$ 18$ -$ -$ 12,880,353$ -$
Sales - Retail - 214,072 4,882 237,184 60,163 35,159 551,460 -
Sales - Utilities 21,209,823 - - - - - 21,209,823 -
Sales - Concessions - - 122,744 11,381 298,485 154,210 586,820 -
Memberships - - 406,377 132,899 - 132,102 671,378 -
Admissions - - 399,359 514,506 95,822 736,303 1,745,990 -
Building Rental - - 62,478 113,777 1,891,488 856,518 2,924,261 -
Rental of Equipment - - - 351,349 7,030 165,419 523,798 -
Greens Fees - - - 1,437,957 - 227,081 1,665,038 -
Other Fees 636,416 - 938 596,744 163,127 927,102 2,324,327 902,952
Total Operating Revenues 21,846,239 13,094,407 996,778 3,395,815 2,516,115 3,233,894 45,083,248 902,952
OPERATING EXPENSES
Cost of Sales and Services - 9,124,351 48,174 181,708 106,194 90,149 9,550,576 -
Personal Services 2,412,437 1,727,094 383,262 1,604,764 964,080 2,139,484 9,231,121 63,082
Contractual Services 8,942,387 652,419 136,843 537,141 941,360 787,955 11,998,105 275,493
Commodities 917,209 58,580 78,600 459,697 100,111 369,329 1,983,526 -
Central Services 783,111 283,728 33,757 144,845 95,902 204,233 1,545,576 -
Depreciation 5,402,610 103,685 277,330 756,156 666,629 695,623 7,902,033 -
Total Operating Expenses 18,457,754 11,949,857 957,966 3,684,311 2,874,276 4,286,773 42,210,937 338,575
OPERATING INCOME (LOSS)3,388,485 1,144,550 38,812 (288,496) (358,161) (1,052,879) 2,872,311 564,377
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 692,281 - - - - - 692,281 -
Investment Income 729,873 65,244 76,656 32,721 14,544 145,904 1,064,942 47,425
Donations - - 10,700 - - 28,425 39,125 -
Interest and Fiscal Charges (1,082,352) - (27,833) (307,242) (85,174) - (1,502,601) -
Amortization of Bond Premiums
(Discounts)260,657 - 6,423 (17,544) (23,224) - 226,312 -
Gain (Loss) on Sale of Capital Assets (23,763) (21,129) - - - - (44,892) -
Miscellaneous 29,416 2,060 200 800 514 8,874 41,864 -
Total Nonoperating
Revenues (Expenses)606,112 46,175 66,146 (291,265) (93,340) 183,203 517,031 47,425
INCOME (LOSS) BEFORE
CONTRIBUTIONS AND TRANSFERS 3,994,597 1,190,725 104,958 (579,761) (451,501) (869,676) 3,389,342 611,802
CONTRIBUTIONS AND TRANSFERS
Capital Contributions from Other Funds - - - - 91,270 - 91,270 -
Transfers In - 2,290 10,865 65,821 326,873 556,029 961,878 -
Transfers Out (361,500) (850,000) - - - - (1,211,500) -
Total Contributions and Transfers (361,500) (847,710) 10,865 65,821 418,143 556,029 (158,352) -
CHANGE IN NET POSITION 3,633,097 343,015 115,823 (513,940) (33,358) (313,647) 3,230,990 611,802
Net Position - January 1 86,556,299 3,124,482 3,117,372 2,089,136 4,752,781 10,987,030 110,627,100 1,426,595
NET POSITION - DECEMBER 31 90,189,396$ 3,467,497$ 3,233,195$ 1,575,196$ 4,719,423$ 10,673,383$ 113,858,090$ 2,038,397$
Business-Type Activities - Enterprise Funds
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(31)
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 21,468,768$ 13,139,889$ 997,008$ 3,412,684$ 2,538,632$ 3,121,988$ 44,678,969$ 1,201,137$
Payment to Suppliers (10,278,510) (10,202,570) (301,001) (1,655,344) (1,206,999) (1,475,650) (25,120,074) (236,003)
Payment to Employees (2,357,257) (1,775,838) (383,213) (1,605,754) (943,505) (2,093,806) (9,159,373) (63,082)
Net Cash Provided (Used) by
Operating Activities 8,833,001 1,161,481 312,794 151,586 388,128 (447,468) 10,399,522 902,052
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Grants and Contributions - - 10,700 - - - 10,700 -
Transfer from Other Funds - 2,290 10,865 65,821 326,873 556,029 961,878 -
Transfer to Other Funds (361,500) (850,000) - - - - (1,211,500) -
Miscellaneous Received - - - - - 37,299 37,299 -
Net cash Provided (Used) by Noncapital
Financing Activities (361,500) (847,710) 21,565 65,821 326,873 593,328 (201,623) -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
State Grant 695,501 - - - - - 695,501 -
Proceeds from Capital Debt 6,948,847 - - - - - 6,948,847 -
Acquisition of Capital Assets (8,250,323) (333,526) - (311,393) - (153,244) (9,048,486) -
Proceeds from Disposalsof Capital Assets 7,369 - - - - - 7,369 -
Principal Paid on Bonds (5,685,000) - (70,000) (525,000) (254,000) - (6,534,000) -
Interest and Fiscal Charges Paid on Bonds (999,754) - (29,000) (314,659) (87,075) - (1,430,488) -
Net Cash Provided (Used) by Capital and
Related Financing Activities (7,283,360) (333,526) (99,000) (1,151,052) (341,075) (153,244) (9,361,257) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 731,957 64,962 76,404 33,620 13,195 146,822 1,066,960 45,732
NET INCREASE (DECREASE) IN CASH AND
INVESTMENTS 1,920,098 45,207 311,763 (900,025) 387,121 139,438 1,903,602 947,784
Cash and Investments - January 1 21,608,052 1,831,723 1,858,955 1,101,411 455,836 4,030,999 30,886,976 913,556
CASH AND INVESTMENTS - DECEMBER 31 23,528,150$ 1,876,930$ 2,170,718$ 201,386$ 842,957$ 4,170,437$ 32,790,578$ 1,861,340$
Business-Type Activities - Enterprise Funds
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(32)
Governmental
Activities
Risk
Nonmajor Total Management
Aquatic Golf Enterprise Enterprise Internal
Utilities Liquor Center Course Arena Funds Funds Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES
Operating Income (Loss) 3,388,485$ 1,144,550$ 38,812$ (288,496)$ (358,161)$ (1,052,879)$ 2,872,311$ 564,377$
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Flows Provided (Used) byOperating Activities:
Depreciation 5,402,610 103,685 277,330 756,156 666,629 695,623 7,902,033 -
Miscellaneous Income 29,416 2,060 200 800 514 - 32,990 -
(Increase) Decrease in:
Accounts Receivable (372,799) 5,544 30 (27,514) 11,542 (79,386) (462,583) 309,972
Special Assessments Receivable (34,088) - - - - - (34,088) -
Due from Other Governments - - - - - - - (11,787)
Inventory 7,361 705 - (29,893) - 2,659 (19,168) -
Prepaid Expenses 17,641 (39,085) - - - - (21,444) 148,757
Deferred Outflows of Resources 111,605 111,634 - 63,806 47,839 127,552 462,436 -
Increase (Decrease) in:
Accounts Payable 340,040 (42,236) (4,030) (304,856) 35,099 (23,414) 603 (108,254)
Salaries Payable 13,980 (16,638) 49 3,557 5,897 9,436 16,281 -
Due to Other Governments (845) (2,876) 403 2,796 1,469 (3,229) (2,282) (1,013)
Unearned Revenue - 37,878 - 43,583 10,461 (32,520) 59,402 -
Total OPEB Liability 1,345 2,153 - 1,615 807 1,615 7,535 - Net Pension Liability 2,277 2,277 - 1,301 976 2,603 9,434 - Compensated Absences 11,257 (64,087) - (23,793) 1,263 1,823 (73,537) -
Deferred Inflows of Resources (85,284) (84,083) - (47,476) (36,207) (97,351) (350,401) -
Total Adjustments 5,444,516 16,931 273,982 440,082 746,289 605,411 7,527,211 337,675
Net Cash Provided (Used) by
Operating Activities 8,833,001$ 1,161,481$ 312,794$ 151,586$ 388,128$ (447,468)$ 10,399,522$ 902,052$
NONCASH INVESTING ACTIVITIES
Increase (Decrease) in Fair Value of Investments (217,978)$ (21,164)$ (24,940)$ (8,423)$ (3,517)$ (48,774)$ (324,796)$ (13,994)$
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition of Capital Assets with
Contracts Payable (108,046)$ 14,212$ -$ 165,289$ -$ -$ 71,455$ -$
Capital Assets Contributed from Other Funds -$ 2,290$ -$ -$ 91,270$ -$ 93,560$ -$
Business-Type Activities - Enterprise Funds
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
DECEMBER 31, 2019
See accompanying Notes to Financial Statements.
(33)
Agency Funds
Cash and Investments 754,783$
Due from Other Governmental Units 78,361
Total Assets 833,144$
Accounts Payable 248,510$
Salaries Payable 10,670
Due to Other Governmental Units 573,964
Total Liabilities 833,144$
ASSETS
LIABILITIES
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(34)
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, 2019
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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
postemployment 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, 2019
(36)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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 utilities 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(37)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(38)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
(Continued)
Depreciation expense is included in the direct expenses of each function. Interest on
long-term debt is considered an indirect expense and is reported separately on the
statement of activities.
D. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(39)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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, 2019 are planned to be eliminated in 2020. Any residual balances
outstanding between the governmental activities and business-type activities are
reported in the government- wide financial statements as “internal balances.”
Property taxes and special assessments receivables have been reported net of
estimated uncollectible accounts. Because utility bills are considered liens on property,
no estimated uncollectible amounts are established. Uncollectible amounts are not
material for other receivables and have not been reported.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(40)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F. Revenue Recognition (Continued)
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.
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, 2019:
Enterprise
Funds
Debt
Service Construction Utilities
Special Assessments Receivable:
Delinquent 17,311$ 17,214$ 26,670$
Deferred 8,318,240 14,471,544 304,878
Total 8,335,551$ 14,488,758$ 331,548$
Governmental Funds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(41)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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
Building 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(42)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
Pension liabilities are liquidated by various governmental funds based on where the
corresponding employees’ salaries are allocated.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(43)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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 three items which qualify for reporting in this category.
Unavailable revenue is reported only in the governmental funds balance sheet. The
governmental funds report unavailable revenue from three sources: property taxes,
special assessments and municipal construction aid. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(44)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Fund Balance Classification
In the fund financial statements, governmental funds report fund balance in
classifications that disclose constraints for which amounts in those funds can be spent.
These classifications are as follows:
Nonspendable – Consists of amounts that are not in spendable form, such as
prepaid items, inventory, and other long-term assets.
Restricted – Consists of amounts related to externally imposed constraints
established by creditors, grantors, or contributors; or constraints imposed by
state statutory provisions.
Committed – Consists of internally imposed constraints that are established by
resolution of the City Council. Those committed amounts cannot be used for any
other purpose unless the City Council removes or changes the specified use by
taking the same type of action it employed to previously commit those amounts.
Assigned – Consists of internally imposed constraints. These constraints consist
of amounts intended to be used by the City for specific purposes but do not meet
the criteria to be classified as restricted or committed. In the general fund,
assigned amounts represent intended uses established by the City Council. In
the fund balance policy, authority to assign amounts for specific purposes is
limited to the City Council.
Unassigned – The residual classification for the general fund which also reflects
negative residual amounts in other funds.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. Net Position (Continued)
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.
NOTE 2 CASH AND INVESTMENTS
A. Components of Cash and Investments
Cash and investments at year-end consist of the following:
Deposits 573,456$
Cash on hand 32,820
Investments 103,540,323
Total 104,146,599$
Cash and investments are presented in the financial statements as follows:
Cash and Investments - Statement of Net Position 103,122,447$
Restricted Cash and Investments - Statement of
Net Position 269,369
Cash and Investments - Statement of Fiduciary
Net Position 754,783
Total 104,146,599$
The City had restricted investments of $269,369 as of December 31, 2019 that
represents unspent bond proceeds to be used for construction projects and debt
payments.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(46)
NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED)
B. Deposits (Continued)
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 $573,456 while the
balance on the bank records was $462,541. At December 31, 2019, all of the City’s
deposits were properly collateralized in accordance with state statutes.
C. Investments
The City has the following investments at year-end:
Fair Value
Measurements
Investment Rating Agency Using < 1 1 to 5 6 to 10 > 10 Total
U.S. Treasuries N/A N/A Level 1 1,224,660$ 5,458,882$ 3,402,017$ 21,260$ 10,106,819$
Negotiable CDs N/R N/R Level 2 7,414,619 9,279,302 - - 16,693,921
SBA Notes AA+ S&P Level 1 114,245 - - - 114,245
FHLB AA+ S&P Level 2 639,157 888,936 151,853 - 1,679,946
FHLMC AA+ S&P Level 2 725,090 74,447 34,573 708,906 1,543,016
FNMA AA+ S&P Level 2 574,764 364,922 100,347 10,582,142 11,622,175
FFCB AA+ S&P Level 2 1,649,863 538,668 18,399 - 2,206,930
Municipal Bonds AA- to AAA S&P Level 2 6,358,984 9,258,254 1,354,899 506,310 17,478,447
Short-Term Corporate A1+ S&P Level 2 1,733,040 - - - 1,733,040
Commercial Paper N/R to A1 S&P Level 2 3,808,007 - - - 3,808,007
Subtotal 24,242,429$ 25,863,411$ 5,062,088$ 11,818,618$
Money Market*33,646,825
4M Fund*2,906,952
Total investments 103,540,323$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments do not have maturities
Credit Risk
Interest Risk -
Maturity Duration in Years
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(47)
NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED)
C. Investments (Continued)
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.
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 $10,000,000, that are a primary
reporting dealer in U.S. government securities to the Federal Reserve Bank of New
York, or certain Minnesota securities broker-dealers. The City’s investment policies
specifically address credit risk, further limiting the City’s exposure to credit risk by
requiring that all state and local government obligations to be rated “AA” or better by
a national rating agency.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(48)
NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED)
C. Investments (Continued)
Concentration Risk – This is the risk associated with investing a significant portion
of the City’s investment (considered 5% or more) in the securities of a single issuer,
excluding U.S. guaranteed investments (such as Treasuries), investment pools, and
mutual funds. The City’s investment policies specifically address the City’s desire to
limit concentration risk, but do not set specific guidelines for measurement of this
risk. At year-end, the City’s investments include 11.22% in securities issued by
FNMA.
Interest Rate Risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for which
an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set specific
guidelines for measurement of this risk.
NOTE 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2019 is as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental Activities:
Capital Assets Not Being Depreciated:
Land 21,221,675$ 2,893,443$ -$ -$ 24,115,118$
Easements 253,000 - - - 253,000
Construction in Progress 16,039,275 8,799,100 (16,509,618) - 8,328,757
Total Capital Assets Not Being
Depreciated 37,513,950 11,692,543 (16,509,618) - 32,696,875
Capital Assets Being Depreciated:
Land Improvements 25,432,458 134,935 - - 25,567,393
Buildings and Structures 64,071,532 164,294 - (25,785) 64,210,041
Furniture and Office Equipment 4,348,128 90,404 (501,011) - 3,937,521
Vehicles and Equipment 16,994,802 3,974,141 (1,725,424) (65,485) 19,178,034
Infrastructure 137,208,997 15,897,743 (872,939) - 152,233,801
Parks 22,541,870 283,100 (64,529) - 22,760,441
Total Capital Assets Being
Depreciated 270,597,787 20,544,617 (3,163,903) (91,270) 287,887,231
Less Accumulated Depreciation for:
Land Improvements (18,908,921) (754,994) - - (19,663,915)
Buildings and Structures (25,598,112) (1,764,935) - - (27,363,047)
Furniture and Office Equipment (3,849,031) (191,592) 487,286 - (3,553,337)
Vehicles and Equipment (11,384,629) (1,331,777) 1,435,397 - (11,281,009)
Infrastructure (63,874,191) (4,749,721) 412,959 - (68,210,953)
Parks (12,535,609) (994,122) 64,529 - (13,465,202)
Total Accumulated Depreciation (136,150,493) (9,787,141) 2,400,171 - (143,537,463)
Total Capital Assets Being
Depreciated, Net 134,447,294 10,757,476 (763,732) (91,270) 144,349,768
Governmental Activities Capital Assets, Net 171,961,244$ 22,450,019$ (17,273,350)$ (91,270)$ 177,046,643$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(49)
NOTE 3 CAPITAL ASSETS (CONTINUED)
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 13,447,342 8,366,670 (13,404,742) - 8,409,270
Total Capital Assets Not Being
Depreciated 13,768,283 8,366,670 (13,404,742) - 8,730,211
Capital Assets Being Depreciated:
Land Improvements and Golf Course 8,585,239 6,924,667 - - 15,509,906
Buildings and Structures 39,020,361 121,121 (82,307) 25,785 39,084,960
Furniture and Office Equipment 140,448 - - - 140,448
Vehicles and Equipment 13,054,406 496,906 (171,266) 65,485 13,445,531
Utility Infrastructure 143,680,687 6,543,863 (211,288) - 150,013,262
Lease Property Capital Lease 430,614 - - - 430,614
Total Capital Assets Being
Depreciated 204,911,755 14,086,557 (464,861) 91,270 218,624,721
Less Accumulated Depreciation for:
Land Improvements and Golf Course (4,152,909) (563,837) - - (4,716,746)
Buildings and Structures (18,525,009) (1,613,896) 82,307 - (20,056,598)
Furniture and Office Equipment (139,680) (767) - - (140,447)
Vehicles and Equipment (6,969,392) (793,688) 150,137 - (7,612,943)
Utility infrastructure (57,192,202) (4,929,846) 180,155 - (61,941,893)
Lease Property Capital Lease (430,614) - - - (430,614)
Total Accumulated Depreciation (87,409,806) (7,902,034) 412,599 - (94,899,241)
Total Capital Assets Being
Depreciated, Net 117,501,949 6,184,523 (52,262) 91,270 123,725,480
Business-Type Activities Capital Assets, Net 131,270,232$ 14,551,193$ (13,457,004)$ 91,270$ 132,455,691$
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental Activities:
General Government 492,011$
Public Safety 1,039,974
Public Works 6,050,815
Parks 2,204,341
Total Depreciation Expense - Governmental Activities 9,787,141$
Business-Type Activities:
Utilities 5,402,609$
Liquor 103,684
Aquatic Center 277,333
Golf Course 756,156
Arena 666,629
Art Center 5,890
Edinborough Park 140,202
Centennial Lakes 36,681
Sports Dome 512,850
Total Depreciation Expense - Business-Type Activities 7,902,034$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(50)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Construction Commitments
At December 31, 2019, 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
19-10 Eng Bredesen Park E 308,200$ 13,068$
19-9 Eng Valley View Rd Ped Bridge 217,117 14,099
18-4 Eng Normandale Park D Neighborhood 2,353,951 50,858
18-1 Pk Centennial Lakes Bridges 1,073,860 138,610
NA MSA Maintenance Projects 19,828 1,983
NA Arden Park Shelter and Improvements 1,057,575 35,535
19-3 Eng Indian Trails B/C 2,057,182 7,220
NA West 70th St - Retaining Wall 393,865 84,904
19-7 Eng Minnehaha Trunk Sewer Rehab 1,601,011 292,438
19-9 Eng Yorktown Park Sanitary Sewer Trunk Pipe Extension 945,947 908,253
NA Sunnyslope Shoreline Stabilization 91,666 17,539
Total 1,564,507$
NOTE 4 LONG-TERM DEBT
The City has four types of bonded debt outstanding at December 31, 2019: general
obligation bonds, permanent improvement revolving bonds, public project 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(51)
NOTE 4 LONG-TERM DEBT (CONTINUED)
Governmental Activities
As of December 31, 2019, 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 12/31/2019
General Obligation Bonds:
General Obligation - Capital Improvement
Plan, 2010A 2.00-4.00% 11/18/2010 2/1/2021 8,285,000$ 1,755,000$
General Obligation - Capital Improvement
Plan, 2013A - Refunding 3.00-3.50% 10/10/2013 2/1/2030 5,710,000 3,965,000
General Obligation - 2016A - Refunding 2.00-3.00% 7/6/2016 2/1/2028 3,635,000 3,055,000
General Obligation - 2017C - Refunding 2.05-400% 12/14/2017 2/1/2029 8,955,000 8,325,000
General Obligation Equipment Certificate - 2019A 3.00-5.00% 6/13/2019 2/1/2036 2,805,000 2,805,000
Total General Obligation Bonds 29,390,000 19,905,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2010B 2.00-3.00% 11/18/2010 2/1/2022 2,305,000 745,000
Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 1,420,000
Permanent Improvement Revolving, 2012A 3.00-4.00% 11/15/2012 2/1/2029 2,675,000 1,925,000
Permanent Improvement Revolving, 2013A 3.00-3.50% 10/10/2013 2/1/2030 2,555,000 1,980,000
Permanent Improvement Revolving, 2014B -
Refunding 2.00-3.00% 12/11/2014 2/1/2020 4,075,000 880,000
Permanent Improvement Revolving, 2015A 2.00-4.00% 7/9/2015 2/1/2032 6,545,000 5,825,000
Permanent Improvement Revolving, 2015A -
Parking 2.00-4.00% 7/9/2015 2/1/2036 2,495,000 2,205,000
Permanent Improvement Revolving, 2016A 2.00-3.00% 7/6/2016 2/1/2033 3,940,000 3,725,000
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
Permanent Improvement Revolving, 2019A 3.00-4.00% 6/13/2019 2/1/2036 2,195,000 2,195,000
Total PIR Bonds 36,300,000 25,105,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2009A 2.10-4.55% 11/24/2009 2/1/2030 2,595,000 1,395,000
Public Project Revenue, Series 2014A 2.00-3.625% 7/15/2014 2/1/2035 16,155,000 13,615,000
Public Project Revenue, Series 2015A -
Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 2,350,000
Total Public Project Revenue Bonds 22,240,000 17,360,000
Total Bonded Indebtedness -
Governmental Activities 87,930,000$ 62,370,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(52)
NOTE 4 LONG-TERM DEBT (CONTINUED)
Business-Type Activities
Final
Interest Issue Maturity Original Payable
Rates Date Date Issue 12/31/2019
Revenue Bonds:
Recreational Facility Bonds, Series 2012B 0.45-1.60% 11/15/2012 2/1/2020 815,000$ 75,000$
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 1,125,000 810,000
Recreational Facility Bonds, Series 2015B 2.00-325% 7/9/2015 2/1/2031 2,140,000 1,775,000
Recreational Facility Bonds, Series 2017B 3.00-4.00% 6/29/2017 2/1/2033 7,425,000 6,945,000
Recreational Facility Bonds, Series 2017D -
Refunding 2.00% 12/20/2017 2/1/2030 1,640,000 1,459,000
Utility Revenue Bonds, Series 2011A 2.00-3.00% 10/27/2011 2/1/2022 11,230,000 3,655,000
Utility Revenue Bonds, Series 2012A 3.00-4.00% 11/15/2012 2/1/2023 6,100,000 2,725,000
Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 2,970,000
Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 3,255,000
Utility Revenue Bonds, Series 2016A 2.00-3.00% 7/6/2016 2/1/2027 8,775,000 7,215,000
Utility Revenue Bonds, Series 2017A 3.00-4.00% 6/29/2017 2/1/2028 6,595,000 6,045,000
Utility Revenue Bonds, Series 2018A 3.00-4.00% 6/27/2018 2/1/2029 3,305,000 3,305,000
Utility Revenue Bonds, Series 2019A 3.00-4.00% 6/13/2019 2/1/2036 5,815,000 5,815,000
Total Bonded Indebtedness - Business-
Type Activities 73,690,000$ 48,149,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Year Ending
December 31,Principal Interest Principal Interest Principal Interest
2020 2,180,000$ 669,125$ 2,570,000$ 771,215$ 1,115,000$ 540,690$
2021 2,505,000 561,700 1,865,000 701,569 1,145,000 505,649
2022 1,670,000 482,000 2,020,000 641,119 1,185,000 472,949
2023 1,735,000 419,050 1,830,000 575,731 1,220,000 438,951
2024 1,800,000 353,550 1,515,000 517,544 1,255,000 400,171
2025-2029 9,600,000 799,077 8,295,000 1,814,113 5,535,000 1,438,975
2030-2034 415,000 7,263 6,125,000 561,478 4,835,000 630,935
2035-2036 - - 885,000 26,701 1,070,000 19,394
Total 19,905,000$ 3,291,765$ 25,105,000$ 5,609,470$ 17,360,000$ 4,447,714$
Governmental Activities
General
Obligation Bonds
Public Improvement
Revolving Bonds
Public Project
Revenue Bonds
Year Ending
December 31,Principal Interest
2020 5,456,000$ 1,574,482$
2021 6,079,000 1,356,135
2022 6,261,000 1,155,895
2023 5,184,000 963,055
2024 4,622,000 791,399
2025-2029 16,595,000 1,960,831
2030-2036 3,952,000 201,542
Total 48,149,000$ 8,003,339$
Business-Type Activities
Revenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(53)
NOTE 4 LONG-TERM DEBT (CONTINUED)
Change in Long-Term Liabilities
Long-term liability activity for the year ended December 31, 2019 was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental Activities:
Bonds Payable:
General Obligation 19,155,000$ 2,805,000$ (2,055,000)$ 19,905,000$ 2,180,000$
PIR 25,540,000 2,195,000 (2,630,000) 25,105,000 2,570,000
Public Project Revenue 18,440,000 - (1,080,000) 17,360,000 1,115,000
EEEP Revenue 13,476 - (13,476) - -
Less Deferred Amounts:
Discounts on Bonds (385,961) - 385,961 - -
Premiums on Bonds 2,214,801 799,080 (355,280) 2,658,601 -
Total Bonds Payable 64,977,316 5,799,080 (5,747,795) 65,028,601 5,865,000
Loans Payable - 750,000 - 750,000 -
Compensated Absences 4,110,969 1,932,232 (2,057,156) 3,986,045 1,594,418
Governmental Activity
Long-Term Liabilities 69,088,285$ 8,481,312$ (7,804,951)$ 69,764,646$ 7,459,418$
Business-Type Activities:
Bonds Payable:
Revenue Bonds 48,868,000$ 5,815,000$ (6,534,000)$ 48,149,000$ 5,456,000$
Less Deferred Amounts:
Discounts on Bonds (204,462) - 204,462 - -
Premiums on Bonds 2,800,822 1,133,847 (430,774) 3,503,895 -
Total Bonds Payable 51,464,360 6,948,847 (6,760,312) 51,652,895 5,456,000
Compensated Absences 730,465 205,094 (278,631) 656,928 262,771
Business-Type Activity
Long-Term Liabilities 52,194,825$ 7,153,941$ (7,038,943)$ 52,309,823$ 5,718,771$
For governmental activities, compensated absences are generally liquidated by the general
fund.
On June 13, 2019, the City issued $10,815,000 of General Obligation Bonds, Series 2019A.
The proceeds of these bonds are being used to finance construction of various public street
improvement projects, the construction of various utility system improvements, and the
acquisition of public safety capital equipment. The bonds include coupon rates of 3.00-
5.00%, with a final maturity date of February 1, 2036.
In October 2019, the HRA agreed to loan $1,500,000 to Edina Market Street, LLC, to assist
in construction costs of a 100 unit apartment building on property located in the City. The
East Edina Housing Foundation agreed to fund $750,000 of this loan via an agreement with
the HRA. As a result the HRA has a loan payable to the East Edina Housing Foundation for
the portion they funded. The term of the loan is 15 years with interest payments due
annually and the principal due at maturity. Each year the City will remit half of the payments
it receives to the Housing Foundation.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(54)
NOTE 4 LONG-TERM DEBT (CONTINUED)
Revenue Pledged
Future revenue pledged for the payment of long-term debt is as follows:
Percent of Remaining Principal Pledged
Total Debt Terms of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2012B Recreational Facility Bonds Arena Improvements Arena 100 % 2013-2020 75,600$ 133,280$ 2,516,115$
2012C Recreational Facility Bonds Arena Improvements Arena 100 2013-2033 2,518,122 53,794 2,516,115
2013B Recreational Facility Bonds Golf Dome Improvements Golf 100 2014-2029 948,023 97,615 3,395,815
2015B Recreational Facility Bonds Golf Course Improvements Golf 100 2016-2031 2,118,397 178,844 3,395,815
2017B Recreational Facility Bonds Golf Course Improvements Golf 100 2018-2033 7,901,950 572,100 3,395,815
2017B Recreational Facility Bonds Pool Improvements Pool 100 2018-2027 806,000 100,400 996,778
2017D Recreational Facility Bonds Arena Improvements Arena 100 2018-2030 1,624,850 154,966 2,516,115
2011A Utility Revenue Bonds Utility Infrastructure Utility 100 2012-2022 3,821,575 1,160,000 21,846,239
2012A Utility Revenue Bonds Utility Infrastructure Utility 100 2013-2023 2,891,275 736,950 21,846,239
2014A Utility Revenue Bonds Utility Infrastructure Utility 100 2014-2024 3,182,825 644,150 21,846,239
2015A Utility Revenue Bonds Utility Infrastructure Utility 100 2016-2025 3,604,100 608,700 21,846,239
2016A Utility Revenue Bonds Utility Infrastructure Utility 100 2017-2027 7,975,681 1,013,763 21,846,239
2017A Utility Revenue Bonds Utility Infrastructure Utility 100 2018-2028 7,073,150 798,500 21,846,239
2018A Utility Revenue Bonds Utility Infrastructure Utility 100 2019-2029 3,896,150 65,092 21,846,239
2019A Utility Revenue Bonds Utility Infrastructure Utility 100 2020-2036 7,714,641 - 21,846,239
Current YearRevenue Pledged
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 2019 is computed as follows:
2019
Market Value (After Fiscal Disparities) 12,370,204,900$
Debt Limit (3% of Market Value) 3,711,061,470$
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt 110,519,000$
Less:
Public Improvement Revolving Bonds (25,105,000)
Revenue Bonds (48,149,000)
Total Debt Applicable to Debt Limit 37,265,000$
Legal Debt Margin 3,673,796,470$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(55)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE
The City participates in various pension plans, total pension expense for the year ended
December 31, 2019 was $3,280,602. 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 (IRC).
1. General Employees Retirement Fund
All full-time and certain part-time employees of the City are covered by the General
Employees Plan. The General Employees Plan members belong to the Coordinated
Plan. Coordinated Plan members are covered by Social Security.
2. Public Employees Police and Fire Fund
The Police and Fire Plan, 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 Police and Fire 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. General Employees Plan Benefits
General Employees Plan 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%
of average salary for each of the first 10 years of service and 1.7% of average salary
for each additional year. Under Method 2, the accrual rate for Coordinated members
is 1.7% 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
retirement age is 65. For members hired on or after July 1, 1989, normal retirement
age is the age for unreduced Social Security benefits capped at 66.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(56)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
B. Benefits Provided (Continued)
1. General Employees Plan Benefits (Continued)
Annuities, disability benefits, and survivor benefits are increased effective every
January 1. Beginning January 1, 2019, the postretirement increase will be equal to
50 percent of the cost-of-living adjustment (COLA) announced by the SSA, with a
minimum increase of at least 1 percent and a maximum of 1.5 percent. Recipients
that have been receiving the annuity or benefit for at least a full year as of the
June 30 before the effective date of the increase will receive the full increase. For
recipients receiving the annuity or benefit for at least one month but less than a full
year as of the June 30 before the effective date of the increase will receive a reduced
prorated increase. For members retiring on January 1, 2024, or later, the increase
will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or
age 66 for individuals hired on or after July 1, 1989). Members retiring under Rule of
90 are exempt from the delay to normal retirement.
2. Police and Fire Plan Benefits
Benefits for Police and Fire Plan members first hired after June 30, 2010, but before
July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after 10
years of credited service. Benefits for Police and Fire Plan members first hired after
June 30, 2014, vest on a prorated basis from 50% after 10 years up to 100% after 20
years of credited service. The annuity accrual rate is 3% 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.
Annuities, disability benefits, and survivor benefits are increased effective every
January 1. Beginning January 1, 2019, the postretirement increase will be fixed at
1 percent. Recipients that have been receiving the annuity or benefit for at least 36
months as of the June 30 before the effective date of the increase will receive the full
increase. For recipients receiving the annuity or benefit for at least 25 months but
less than 36 months as of the June 30 before the effective date of the increase will
receive a reduced prorated increase.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(57)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
C. Contributions
Minnesota Statutes, Chapter 353 sets the rates for employer and employee
contributions. Contribution rates can only be modified by the state legislature.
1. General Employees Fund Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered
salary in fiscal year 2019 and the City was required to contribute 7.5% for
Coordinated Plan members. The City’s contributions to the General employees Fund
for the year ended December 31, 2019 were $1,471,059. The City’s contributions
were equal to the required contributions as set by state statute.
2. Police and Fire Fund Contributions
Police and Fire member’s contribution rates increased from 10.8% of pay to 11.3%
and employer rates increased from 16.2% to 16.95% on January 1, 2019. The City’s
contributions to the Police and Fire Fund for the year ended December 31, 2019 were
$1,595,304. The City’s contributions were equal to the required contributions as set
by state statute.
D. Pension Costs
1. General Employees Fund Pension Costs
At December 31, 2019, the City reported a liability of $14,745,577 for its
proportionate share of the General Employees Fund’s net pension liability. The City’s
net pension liability reflected a reduction due to the state of Minnesota’s contribution
of $16 million to the fund in 2019. The state of Minnesota is considered a
nonemployer 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 $462,813. The net pension liability
was measured as of June 30, 2019, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date. The
City’s proportion of the net pension liability was based on the City’s contributions
received by the PERA during the measurement period for employer payroll paid
dates from July 1, 2018 through June 30, 2019, relative to the total employer
contributions received from all of the PERA’s participating employers.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(58)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
D. Pension Costs (Continued)
1. General Employees Fund Pension Costs (Continued)
At December 31, 2019, the City’s proportionate share was 0.2694%, which was an
increase of 0.0015% from its proportion measured as of December 31, 2018.
City's Proportionate Share of the Net Pension
Liability 14,745,577$
State of Minnesota's Proportionate Share of the
Net Pension Liability Associated with the City 462,813
Total 15,208,390$
For the year ended December 31, 2019, the City recognized pension expense of
$1,842,674 for its proportionate share of the General Employees Plan’s pension
expense. In addition, the City recognized an additional $34,660 as pension expense
(and grant revenue) for its proportionate share of the state of Minnesota’s
contribution of $16 million to the General Employees Fund.
At December 31, 2019, the City reported its proportionate share of the General
Employees Plan’s deferred outflows of resources and deferred inflows of resources,
related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic
Experience 408,654$ $
Changes in Actuarial Assumptions - 1,159,012
Differences Between Projected and Actual Investment
Earnings - 1,494,638
Changes in Proportion 244,363 296,486
Contributions Paid to the PERA Subsequent to the
Measurement Date 723,685
Total 1,376,702$ 2,950,136$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(59)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
D. Pension Costs (Continued)
1. General Employees Fund Pension Costs (Continued)
$723,685 reported as deferred outflows of resources related to pensions resulting
from city contributions subsequent to the measurement date that will be recognized
as a reduction of the net pension liability in the year ended December 31, 2020.
Other amounts reported as deferred outflows and inflows of resources related to
pensions will be recognized in pension expense as follows:
Pension
Expense
Year Ended December 31,Amount
2020 (736,712)$
2021 (1,312,074)
2022 (272,094)
2023 23,761
2. Police and Fire Fund Pension Costs
At December 31, 2019, the City reported a liability of $9,026,752 for its proportionate
share of the Police and Fire Fund’s net pension liability. The net pension liability was
measured as of June 30, 2019, 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, 2018 through June 30, 2019, relative to the total employer contributions
received from all of the PERA’s participating employers.
At June 30, 2019, the City’s proportion was 0.8479%, which was an increase of
0.0457% from its proportion measured as of June 30, 2018. The City also recognized
$114,466 for the year ended December 31, 2019, as revenue and an offsetting
reduction of net pension liability for its proportionate share of the state of Minnesota’s
on-behalf contributions to the Police and Fire Fund. Legislation passed in 2013
required the state of Minnesota to begin contribution $9 million to the Police and Fire
Fund each year until the plan is 90% funded or until the State Patrol Plan
(administered by the Minnesota State Retirement System) is 90% funded, whichever
occurs later. In addition, the state will pay $4.5 million on October 1, 2018 and
October 1, 2019 in direct state aid. Thereafter, by October 1 of each year, the state
will pay $9 million until fully funding is reached or July 1, 2048, whoever is earlier.
For the year ended December 31, 2019, the City recognized pension expense of
$1,403,268 for its proportionate share of the Police and Fire Plan’s pension
expenses.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(60)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
D. Pension Costs (Continued)
2. Police and Fire Plan Pension Costs (Continued)
At December 31, 2019, the City reported its proportionate share of the Police and
Fire Plan’s deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic
Experience 383,266$ 1,373,968$
Changes in Actuarial Assumptions 7,490,773 10,134,272
Differences Between Projected and Actual Investment
Earnings 1,880,059
Changes in Proportion 766,235 143,401
Contributions Paid to the PERA Subsequent to the
Measurement Date 819,837
Total 9,460,111$ 13,531,700$
$819,837 reported as deferred outflows of resources related to pensions resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ended December 31, 2020. Other
amounts reported as deferred outflows and inflows of resources related to pensions
will be recognized in pension expense as follows:
Pension
Expense
Year Ended December 31,Amount
2020 (499,075)$
2021 (1,162,888)
2022 (3,454,429)
2023 99,190
2024 125,776
E. Actuarial Assumptions
The total pension liability in the December 31, 2019 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%
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(61)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
E. Actuarial Assumptions (Continued)
Salary increases were based on a service-related table. Mortality rates for active
members, retirees, survivors, and disabilitants for all plans 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 the General Employees Plan, and 1.0 percent per year for
the Police and Fire Plan.
Actuarial assumptions used in the June 30, 2019 valuation were based on the results of
actuarial experience studies. The most recent four-year experience study in the General
Employees Plan was completed in 2019. The most recent four-year experience study for
Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions occurred in 2019:
General Employees Fund
Changes in Actuarial Assumptions:
• The morality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions:
• The employer supplemental contribution was changed prospectively, decreasing
from $31.0 million to $21.0 million per year. The State’s special funding
contribution was changed prospectively, requiring $16.0 million due per year
through 2031.
Police and Fire Fund
Changes in Actuarial Assumptions:
• The morality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions:
• There have been no changes since the prior valuation.
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:
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(62)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
E. Actuarial Assumptions (Continued)
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Domestic Stocks 35.5 % 5.10 %
International 25.0 % 5.90
stocks Bonds 20.0 % 0.75
Alternative Assets 17.5 % 5.90
Cash 2.0 % -
F. Discount Rate
The discount rate used to measure the total pension liability in 2019 was 7.5%. 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 General Employees Plan
and Police and Fire Plan 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 24,485,793$ 14,745,577$ 6,975,022$
The City’s Proportionate Share of
the PEPFF Net Pension Liability 19,730,803$ 9,026,752$ 175$
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, 2019
(63)
NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED)
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 IRC and all contributions by or on behalf of employees are tax
deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings,
less administrative 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% 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% of employer contributions and twenty-five hundredths of 1.0% (0.0025) of the
assets in each member’s account annually.
Total contributions made by the City during fiscal year 2019 were:
Required
Employee Employer Employee Employer Rate
2,413$ 2,413$ 5 % 5 % 5 %
Contribution Amount Percentage of Covered Payroll
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(64)
NOTE 7 MULTIPLE-EMPLOYER DEFINED BENEFIT PENSION PLAN (CONTINUED)
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,
postretirement surviving spouse benefits, and disability benefits. The CPF is a supplemental
Pension Fund authorized by Minnesota Statutes, 356.24, subdivision 1(9). The CPF Plan of
Benefits and the Agreement and Declaration of Trust will serve as the governing documents.
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, 2019 were $85,256. With regard to withdrawal
from the pension plan, the parties agree that the amount that would otherwise be paid in
salary or wages will be contributed instead to the CPF as pretax employer contributions.
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN
A. Plan Description
The City provides postemployment insurance benefits to certain eligible employees
through its OPEB Plan, a single-employer defined benefit plan administered by the City.
All postemployment benefits are based on contractual agreements with employee groups.
Eligibility for these benefits is based on years of service and/or minimum age
requirements. These contractual agreements do not include any specific contribution or
funding requirements. The plan does not issue a 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 younger 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(65)
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
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 $144,000. Total OPEB liability will be paid by
the general fund and enterprise funds.
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 was determined by an actuarial valuation with a valuation
date of January 1, 2018. Liabilities in this report were rolled forward to the measurement
date of December 31, 2018.
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 4.09%
20-Year Municipal Bond Yield 4.09%
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 4.09%, which was set by considering published rate
information for 20-year high quality, tax exempt, general obligation municipal bonds as of
the measurement date. The City discount rate used in the prior measurement date was
3.44%.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(66)
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
F. Actuarial Assumptions (Continued)
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%. Married future retirees electing
spouse coverage is assumed to range from 40% to 60% based on classification of
employee.
G. Changes in the Total OPEB Liability
Total OPEB
Liability
Beginning Balance 3,509,875$
Changes for the Year:
Service Cost 296,634
Interest 128,559
Changes of Assumptions (178,824)
Benefit Payments (138,732)
Total Net Changes 107,637
Ending Balance 3,617,512$
Assumption changes since the prior measurement date include the following:
The discount rate was changed from 3.44% to 4.09%.
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 3.09 % 4.09 % 5.09 %
Total OPEB Liability 3,895,531$ 3,617,512$ 3,356,812$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(67)
NOTE 8 OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN (CONTINUED)
H. Total OPEB Liability Sensitivity to Discount and Health Care Cost Trend Rate
Changes (Continued)
The following presents the total OPEB liability of the City, as well as what the City’s total
OPEB liability would be if it were calculated using healthcare cost trend rates that are
1 percentage point lower or 1 percentage point higher than the current healthcare cost
trend rates:
1% Decrease in 1% Increase in
Medical Trend Medical Trend Medical Trend
Rate Rate Rate
OPEB Medical Trend Rate 9.00% decreasing to
4.00% over 10 years
10.00% decreasing to
5.00% over 10 years
11.00% decreasing to
6.00% over 10 years
Total OPEB Liability 3,199,548$ 3,617,512$ 4,112,709$
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 $415,567. As of year-
end, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Changes of Assumptions 68,913$ 160,025$
City Contributions Subsequent to the Measurement
Date 144,000 -
Total 212,913$ 160,025$
A total of $144,000 reported as deferred outflows of resources related to OPEB resulting
from city contributions subsequent to the measurement date will be recognized as a
reduction of the total OPEB liability in the year ending December 31, 2020. Other
amounts reported as deferred outflows and inflows of resources related to the plan will
be recognized in pension expense as follows:
OPEB
Expense
Year Ended December 31,Amount
2020 (9,626)$
2021 (9,626)
2022 (9,626)
2023 (9,626)
2024 (9,626)
Thereafter (42,982)
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(68)
NOTE 9 RECEIVABLES, PAYABLES, AND TRANSFERS
Debt Aquatic Nonmajor
General Service Construction Liquor Center Golf Course Arena Enterprise Total
Transfer Out:
General Fund: -$ -$ 3,388,864$ -$ -$ -$ -$ -$ 3,388,864$
Construction Fund - 3,100,000 - - - 19,050 - 96,822 3,215,872
Utilities Fund 115,494 - 100,000 2,290 10,865 46,771 26,873 59,207 361,500
Liquor Fund 50,000 - 100,000 - - - 300,000 400,000 850,000
Total 165,494$ 3,100,000$ 3,588,864$ 2,290$ 10,865$ 65,821$ 326,873$ 556,029$ 7,816,236$
Transfers In
Interfund transfers allow the City to allocate financial resources to the funds that receive
benefit from services provided by another fund. Some of the City’s interfund transfers fall
under that category. Nonroutine transfers include the following:
1. The liquor fund transferred $50,000, $300,000, $200,000, and $200,000 to the general,
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 2019 budget.
3. The general fund transferred $3,388,864 of the 2018 unassigned fund balance to the
construction fund to subsidize the capital improvement program.
4. The construction fund transferred $3,100,000 of PIR assessment revenue to the debt
service fund for related debt payments.
5. The construction fund transferred $19,050 to the golf course fund for golf cart storage
upgrades and $96,822 to the centennial lakes fund for pathways work.
NOTE 10 TAX INCREMENT DISTRICTS
The Housing Redevelopment Authority and City of Edina are the administering authorities
for the following Tax Increment Districts:
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic
development district established in 2012 pursuant to Minnesota Statutes with a termination
date of 2022.
District number 1211 (Pentagon Park Increment Financing District) is an economic
development district established in 2014 pursuant to Minnesota Statutes with a termination
date of 2043.
District number 1212 (Grandview 2 Increment Financing District) is an economic
development district established in 2016 pursuant to Minnesota Statutes with a termination
date of 2045.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(69)
NOTE 10 TAX INCREMENT DISTRICTS (CONTINUED)
District number 1214 (66 West Increment Financing District) is an economic development
district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045.
District number 1215 (50th and France 2) is an economic development district established in
2017 pursuant to Minnesota Statutes with a termination date of 2045.
The following table reflects values as of December 31, 2019:
TIF #1208 TIF #1211 TIF #1212 TIF #1214 TIF #1215 TIF #1216 TIF #1217 TIF #1218 TotalOriginal Tax Capacity 7,289,563$ 691,608$ 39,890$ 25,525$ 57,986$ 43,163$ 51,818$ 217,506$ 8,417,059$
Current Tax Capacity 14,074,619 1,224,348 216,536 27,166 122,255 43,163 51,818 217,506 15,977,411
Fiscal Disparities 3,609,127 420,628 21,167 - 9,740 - - - 4,060,662
Tax Capacity Change 3,175,929 112,112 155,479 1,641 54,529 - - - 3,499,690
Retained Captured
Tax Capacity 3,175,929$ 112,112$ 155,479$ 1,641$ 54,529$ -$ -$ -$ 3,499,690$
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.
Workers’ 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 2019.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(70)
NOTE 11 CONTINGENCIES (CONTINUED)
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, 2019.
D. Tax Increment Districts
The City’s tax increment districts are subject to review by the state of Minnesota Office
of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could
become a liability of the applicable fund. Management is not aware of any instances of
noncompliance which would have a material effect on the financial statements.
NOTE 12 CONDUIT DEBT OBLIGATION
As of December 31, 2019, 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, Minnesota 55424.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(71)
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,
2019, the City paid a total of $61,640 in membership fees to the PSTF, equal to 17.9% of
membership fees collected for the year.
NOTE 15 SUBSEQUENT EVENT
Subsequent to year-end, the World Health Organization declared the spread of Coronavirus
Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant
effects on global markets, supply chains, businesses, and communities. Specific to the City
of Edina, COVID-19 may impact various parts of its 2020 operations and financial results
including, but not limited to, costs for emergency preparedness and closure of recreational
facilities. Management believes the City is taking appropriate actions to mitigate the
negative impact. However, the full impact of COVID-19 is unknown and cannot be
reasonably estimated as these events occurred subsequent to year-end and are still
developing.
NOTE 16 FUND BALANCES
A. Classifications
At December 31, 2019, a summary of the City’s governmental fund balance
classifications are as follows:
General HRA Debt Service Construction Nonmajor
Fund Fund Fund Fund Funds Total
Nonspendable: 28,403$ -$ -$ -$ -$ 28,403$
Restricted:
Park Dedication 58,086 - - - - 58,086
Tax Increments - 14,676,453 - - - 14,676,453
Affordable Housing - 1,547,145 - - - 1,547,145
Debt Service - - 8,341,996 - - 8,341,996
Pedestrian and Cyclist Improvements - - - - 492,057 492,057
Forfeitures - - - - 628,030 628,030
Grant Funds - - - - 85,628 85,628
Arts and Culture - - - - 46,945 46,945
Donations - - - - 123,682 123,682
Conservation and Sustainability Initiatives - - - - 1,053,089 1,053,089
Total Restricted 58,086 16,223,598 8,341,996 - 2,429,431 27,053,111
Assigned
Compensated absences 1,594,418 - - - - 1,594,418
Race and equity 13,325 - - - - 13,325
Geographic information system (GIS) 137,743 - - - - 137,743
Building Security 195,295 - - - - 195,295
Unrealized Investment Gains or Losses 152,979 - - - - 152,979
Special projects - - - 3,978,491 - 3,978,491
Equipment - - - 4,455,065 - 4,455,065
PIR - - - 3,798,984 - 3,798,984
Construction - - - 9,694,709 - 9,694,709
Total Assigned 2,093,760 - - 21,927,249 - 24,021,009
Unassigned 16,411,412 - - - - 16,411,412
Total Fund Balance 18,591,661$ 16,223,598$ 8,341,996$ 21,927,249$ 2,429,431$ 67,513,935$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2019
(72)
NOTE 16 FUND BALANCES (CONTINUED)
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, 2019, the City has $16,411,412 of unassigned
fund balance in the general fund, or 56.0% of 2019 budgeted property tax revenue. This
amount is $2,708,565 above the goal range identified in the policy.
C. Deficit Fund Equity
The following fund had a deficit fund balance/net position at December 31, 2019:
Nonmajor Proprietary Funds:
Art Center (100,798)$
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Required Supplementary Information.
(73)
2019
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes:
General Property Taxes 30,009,121$ 30,009,121$ 29,743,751$ (265,370)$
Franchise Taxes 870,500 870,500 821,932 (48,568)
Lodging Tax 22,000 22,000 24,119 2,119
Total Taxes 30,901,621 30,901,621 30,589,802 (311,819)
Licenses and Permits 4,714,430 4,714,430 5,109,994 395,564
Intergovernmental:
Federal 60,000 60,000 106,389 46,389
State:
Municipal State Aid 195,000 195,000 195,000 -
Other 75,000 75,000 213,351 138,351
State Aid - Police 390,000 390,000 491,562 101,562
State Aid - Fire 415,000 415,000 460,081 45,081
Health Programs 118,977 118,977 119,061 84
Total Intergovernmental 1,253,977 1,253,977 1,585,444 331,467
Charges for Services:
Administration 12,325 12,325 27,439 15,114
Communications and Technology 134,996 134,996 80,689 (54,307)
Finance 510,008 510,008 508,013 (1,995)
Public Works 17,000 17,000 5,845 (11,155)
Engineering 226,400 226,400 220,974 (5,426)
Police 648,354 648,354 778,131 129,777
Fire 2,378,100 2,378,100 2,805,988 427,888
Parks and Recreation 499,340 499,340 591,065 91,725
Community Development 95,000 95,000 172,561 77,561
Total Charges for Services 4,521,523 4,521,523 5,190,705 669,182
Fines and Forfeits 900,000 900,000 988,254 88,254
Miscellaneous:
Investment Income 120,000 120,000 630,274 510,274
Rental of Property 425,150 425,150 487,797 62,647
Other 8,500 8,500 152,260 143,760
Total Miscellaneous 553,650 553,650 1,270,331 716,681
Total Revenues 42,845,201 42,845,201 44,734,530 1,889,329
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Required Supplementary Information.
(74)
2019
Actual Variance with
Original Final Amounts Final Budget
EXPENDITURES
Current:
General Government:
Administration:
Personal Services 974,342$ 974,342$ 1,102,337$ 127,995$
Contractual Services 1,157,546 1,157,546 1,138,481 (19,065)
Commodities 95,500 95,500 69,278 (26,222)
Central Services 127,512 127,512 124,323 (3,189)
Total Administration 2,354,900 2,354,900 2,434,419 79,519
Communications and Technology:
Personal Services 829,150 829,150 893,325 64,175
Contractual Services 281,150 281,150 209,181 (71,969)
Commodities 85,500 85,500 111,461 25,961
Central Services 92,964 92,964 91,397 (1,567)
Total Communications and
Technology 1,288,764 1,288,764 1,305,364 16,600
Human Resources:
Personal Services 769,802 769,802 954,914 185,112
Contractual Services 80,200 80,200 39,738 (40,462)
Commodities 2,800 2,800 2,132 (668)
Central Services 35,892 35,892 36,271 379
Total Human Resources 888,694 888,694 1,033,055 144,361
Finance:
Personal Services 720,429 720,429 711,440 (8,989)
Contractual Services 241,150 241,150 270,789 29,639
Commodities 17,750 17,750 8,845 (8,905)
Central Services 59,796 59,796 58,781 (1,015)
Total Finance 1,039,125 1,039,125 1,049,855 10,730
Community Development:
Personal Services 1,447,034 1,447,034 1,438,017 (9,017)
Contractual Services 255,450 255,450 175,275 (80,175)
Commodities 7,200 7,200 2,619 (4,581)
Central Services 132,312 132,312 129,901 (2,411)
Total Community Development 1,841,996 1,841,996 1,745,812 (96,184)
Total General Government 7,413,479 7,413,479 7,568,505 155,026
Public Safety:
Police:
Personal Services 10,146,687 10,146,687 10,422,466 275,779
Contractual Services 821,016 821,016 816,134 (4,882)
Commodities 97,424 97,424 89,583 (7,841)
Central Services 1,335,036 1,335,036 1,298,718 (36,318)
Total Police 12,400,163 12,400,163 12,626,901 226,738
Fire:
Personal Services 7,380,162 7,380,162 7,334,087 (46,075)
Contractual Services 679,200 679,200 626,948 (52,252)
Commodities 327,400 327,400 288,463 (38,937)
Central Services 648,456 648,456 638,504 (9,952)
Total Fire 9,035,218 9,035,218 8,888,002 (147,216)
Total Public Safety 21,435,381 21,435,381 21,514,903 79,522
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED)
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Required Supplementary Information.
(75)
2019
Actual Variance with
Original Final Amounts Final Budget
Budgeted Amounts
EXPENDITURES (CONTINUED)
Current (Continued):
Public Works:
Public Works:
Personal Services 2,822,158$ 2,822,158$ 3,075,231$ 253,073$
Contractual Services 1,157,300 1,157,300 1,283,840 126,540
Commodities 1,321,250 1,321,250 1,075,551 (245,699)
Central Services 1,294,356 1,294,356 1,270,437 (23,919)
Total Public Works 6,595,064 6,595,064 6,705,059 109,995
Engineering:
Personal Services 1,488,452 1,488,452 1,358,317 (130,135)
Contractual Services 206,500 206,500 69,741 (136,759)
Commodities 25,000 25,000 38,838 13,838
Central Services 129,540 129,540 130,602 1,062
Total Engineering 1,849,492 1,849,492 1,597,498 (251,994)
Total Public Works 8,444,556 8,444,556 8,302,557 (141,999)
Parks:
Parks and Recreation:
Personal Services 3,388,664 3,388,664 3,244,178 (144,486)
Contractual Services 1,196,110 1,196,110 1,281,350 85,240
Commodities 460,175 460,175 397,772 (62,403)
Central Services 496,836 496,836 489,959 (6,877)
Total Parks and Recreation 5,541,785 5,541,785 5,413,259 (128,526)
Total parks 5,541,785 5,541,785 5,413,259 (128,526)
Total Expenditures 42,835,201 42,835,201 42,799,224 (35,977)
REVENUES OVER (UNDER)
EXPENDITURES 10,000 10,000 1,935,306 1,925,306
OTHER FINANCING SOURCES (USES)
Utility Contribution from Other Funds - - 115,494 115,494
Transfers In 50,000 50,000 50,000 -
Transfers Out - (2,458,564) (3,388,864) (930,300)
Total Financing Sources (Uses) 50,000 (2,408,564) (3,223,370) (814,806)
NET INCREASE (DECREASE) IN FUND
BALANCE 60,000$ (2,398,564)$ (1,288,064) 1,110,500$
Fund Balance - January 1 19,879,725
FUND BALANCE - DECEMBER 31 18,591,661$
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE
HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
YEAR ENDED DECEMBER 31, 2019
See accompanying Notes to Required Supplementary Information.
(76)
2019
Actual Variance with
Original Final Amounts Final Budget
REVENUES
General Property Taxes 160,000$ 160,000$ 158,923$ (1,077)$
Tax increment Collections 5,315,000 5,315,000 5,447,108 132,108
Investment Income 120,500 120,500 499,356 378,856
Charges for Services - - 47,457 47,457
Other Revenues - - 160,000 160,000
Total Revenues 5,595,500 5,595,500 6,312,844 717,344
EXPENDITURES
Current:
Personal Services 168,305 168,305 177,708 9,403
Contractual Services 585,520 585,520 574,717 (10,803)
Commodities 900 900 1,018 118
Capital Outlay 6,576,000 6,576,000 4,066,448 (2,509,552)
Total Expenditures 7,330,725 7,330,725 4,819,891 (2,510,834)
REVENUES OVER (UNDER)
EXPENDITURES (1,735,225) (1,735,225) 1,492,953 3,228,178
OTHER FINANCING SOURCES (USES)
Transfers In 4,041,650 4,041,650 - (4,041,650)
Transfers Out (4,041,650) (4,041,650) - 4,041,650
Sale of capital assets - - 884,900 884,900
Long-Term Loans Issued - - 750,000 750,000
Total Other Financing Sources (Uses) - - 1,634,900 1,634,900
NET INCREASE (DECREASE) IN FUND
BALANCE (1,735,225)$ (1,735,225)$ 3,127,853 4,863,078$
Fund Balance - January 1 13,095,745
FUND BALANCE - DECEMBER 31 16,223,598$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE CITY’S TOTAL
OPEB LIABILITY AND RELATED RATIOS
YEAR ENDED DECEMBER 31, 2019
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.
(77)
December 31, 2018 December 31, 2017
Total OPEB Liability:
Service Cost 296,634$ 270,435$
Interest 128,559 127,096
Changes of Assumptions (178,824) 87,259
Benefit Payments (138,732) (133,679)
Net Changes in Total OPEB Liability 107,637 351,111
Total OPEB Liability - Beginning of Year 3,509,875 3,158,764
Total OPEB Liability - End of Year 3,617,512$ 3,509,875$
Covered-Employee Payroll 24,800,000$ 23,900,000$
Total OPEB Liability as a Percentage of Covered-Employee Payroll 14.59% 14.69%
Measurement Date
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
GERF SCHEDULE OF CITY’S AND NONEMPLOYER PROPORTIONATE SHARE OF NET PENSION
LIABILITY AND SCHEDULE OF CITY CONTRIBUTIONS
YEAR ENDED DECEMBER 31, 2019
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.
(78)
State's City's Plan
Proportionate City's Proportionate Proportionate Fiduciary Net
City's City's Share of the Share of the Net Pension Share of the Position as a
PERA Fiscal Proportion Proportionate Net Pension Liability and the State's Net Pension Percentage
City Fiscal Year-End Date of the Net Share of the Liability Proportionate Share of City's Liability as a of the Total
Year End (Measurement Pension Net Pension Associated the Net Pension Liability Covered Percentage of Pension
Date Date) Liability Liability with the City Associated with the City Payroll Covered Payroll Liability
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%
12/31/2019 6/30/2019 0.2694% 14,745,577 462,813 15,208,390 19,063,827 79.78% 80.00%
Contributions
in Relation to
City Fiscal Statutorily the Statutorily Contribution Contributions as a
Year-End Required Required Deficiency Covered Percentage of Covered
Date Contributions Contributions (Excess) Payroll Payroll
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%
12/31/2019 1,471,059 1,471,059 - 19,614,120 7.50%
Schedule of City Contributions
Schedule of City's and Nonemployer Proportionate Share of Net Pension Liability
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PEPFF SCHEDULE OF CITY’S PROPORTIONTE SHARE OF NET PENSION LIABILITY AND
SHEDULE OF CITY CONTRIBUTIONS
YEAR ENDED DECEMBER 31, 2019
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.
(79)
City's City's Proportionate
PERA Fiscal Proportion City's Share of the Net Plan Fiduciary
City Fiscal Year-End Date of the Net Proportionate Pension Liability Net Position
Year-End (Measurement Pension Share of the Net City's Covered as a Percentage as a Percentage
Date Date) Liability Pension Liability Payroll of Covered Payroll of the Total Pension
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%
12/31/2019 6/30/2019 0.8479% 9,026,752 9,151,062 98.64% 89.30%
Contributions
in Relation to
City Fiscal Statutorily the Statutorily Contribution Contributions as a
Year-End Required Required Deficiency Covered Percentage of
Date Contributions Contributions (Excess) Payroll Covered Payroll
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%
12/31/2019 1,595,304 1,595,304 - 9,847,556 16.20%
Schedule of City's Proportionate Share of Net Pension Liability
Schedule of City Contributions
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2019
(80)
NOTE 1 LEGAL COMPLIANCE – BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the
preceding schedules:
1. The City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following January 1. The operating budget includes
proposed expenditures and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted by the passage of a resolution by the City Council.
4. Formal budgetary integration is employed as a management control device during
the year.
5. Budgets for all governmental funds are adopted on a basis consistent with generally
accepted accounting principles.
6. Reported budget amounts are as originally adopted or as amended by Council-
approved supplemental appropriations and budget transfers.
7. Expenditures may not legally exceed appropriations by department in the General
Fund unless offset by increases in revenues. All unencumbered appropriations lapse
at year-end.
NOTE 2 EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund is legally adopted on a basis consistent with accounting principles
generally accepted in the United 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 2,354,900$ 2,434,419$ 79,519$
Communications and Technology 1,288,764 1,305,364 16,600
Human Resources 888,694 1,033,055 144,361
Finance 1,039,125 1,049,855 10,730
Public Safety:
Police 12,400,163 12,626,901 226,738
Public Works:
Public Works 6,595,064 6,705,059 109,995
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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2019
(81)
NOTE 2 EXCESS OF EXPENDITURES OVER APPROPRIATIONS (CONTINUED)
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 7,684,860$ 7,702,002$ 17,142$
Construction Fund 2,270,600 14,127,886 11,857,286
Community Development Block Grant 125,000 340,954 215,954
Police Fund 133,000 153,257 20,257
Environmental Efficiency Fund - 30,072 30,072
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.
NOTE 3 PENSION INFORMATION
General Employees Retirement Fund
2019 Changes
Changes in Actuarial Assumptions
The morality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
The employer supplemental contribution was changed prospectively, decreasing
from $31.0 million to $21.0 million per year. The State’s special funding
contribution was changed prospectively, requiring $16.0 million due per year
through 2031.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2019
(82)
NOTE 3 PENSION INFORMATION (CONTINUED)
General Employees Retirement Fund (Continued)
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% per year through 2044
and 2.50% per year thereafter to 1.25% per year.
Changes in Plan Provisions
The augmentation adjustment in early retirement factors is eliminated over a five-
year period starting July 1, 2019, resulting in actuarial equivalence after June 30,
2024.
Interest credited on member contributions decreased from 4.00 percent to 3.00
percent, beginning July 1, 2018.
Deferred augmentation was changed to 0.00 percent, effective January 1, 2019.
Augmentation that has already accrued for deferred members will still apply.
Contribution stabilizer provisions were repealed.
Postretirement benefit increases were changed from 1.00 percent per year with a
provision to increase to 2.50 percent upon attainment of 90.00 percent funding
ratio to 50.00 percent of the Social Security Cost of Living Adjustment, not less
than 1.00 percent and not more than 1.50 percent, beginning January 1, 2019.
For retirements on or after January 1, 2024, the first benefit increase is delayed
until the retiree reaches normal retirement age; does not apply to Rule of 90
retirees, disability benefit recipients, or survivors.
Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8% for active
members and 60% for vested and nonvested deferred members. The revised
CSA loads are now 0.0% for active member liability, 15.0% for vested deferred
member liability, and 3.0% for nonvested deferred member liability.
The assumed postretirement benefit increase rate was changed from 1.0% per
year for all years to 1.0% per year through 2044 and 2.5% per year thereafter.
Changes in Plan Provisions
The State’s contribution for the Minneapolis Employees Retirement Fund equals
$16,000,000 in 2017 and 2018, and $6,000,000 thereafter.
The Employer Supplemental Contribution for the Minneapolis Employees
Retirement Fund changed from $21,000,000 to $31,000,000 in calendar years
2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000
in calendar years 2019 to 2031.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2019
(83)
NOTE 3 PENSION INFORMATION (CONTINUED)
General Employees Fund Retirement Fund (Continued)
2016 Changes
Changes in Actuarial Assumptions:
The assumed postretirement benefit increase rate was changed from 1.0% per
year through 2035 and 2.5% per year thereafter to 1.0% per year for all years.
The assumed investment return was changed from 7.9% to 7.5%. The single
discount rate was changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated
June 30, 2015. The assumed future salary increases, payroll growth, and
inflation were decreased by 0.25% to 3.25% for payroll growth and 2.5% for
inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Actuarial Assumptions:
The assumed postretirement benefit increase rate was changed from 1.0% per year
through 2030 and 2.5% per year thereafter to 1.0% per year through 2035 and
2.5% per year thereafter.
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.
Public Employees Police and Fire Fund
2019 Changes
Changes in Actuarial Assumptions
The morality projection scale was changed from MP-2017 to MP-2018.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2018 Changes
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2016 to MP-2017.
Changes in Plan Provisions
Postretirement benefit increases were changed to 1.00 percent for all years, with
no trigger.
An end date of July 1, 2048 was added to the existing $9.0 million state
contribution
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2019
(84)
NOTE 3 PENSION INFORMATION (CONTINUED)
Public Employees Police and Fire Fund (Continued)
New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and
$9.0 million thereafter until the plan reaches 100 percent funding, or July 1, 2048,
if earlier.
Member contributions were changed from 10.80 percent to 11.30 percent of pay,
effective January 1, 2019 and 11.80 percent of pay, effective January 1, 2020.
Employer contributions were changed from 16.20 percent to 16.95 percent of
pay, effective January 1, 2019 and 17.70 percent of pay, effective January 1,
2020.
Interest credited on member contributions decreased from 4.00 percent to 3.00
percent, beginning July 1, 2018.
Deferred augmentation was changed to 0.00 percent, effective January 1, 2019.
Augmentation that has already accrued for deferred members will still apply.
Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017 Changes
Changes in Actuarial Assumptions:
Assumed salary increases were changed as recommended in the June 30, 2016
experience study. The net effect is proposed rates that average 0.34% lower
than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30% for vested and nonvested
deferred members. The CSA has been changed to 33% for vested members and
2% for nonvested 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% for the first three years of
service. Rates beyond the select period of three years were adjusted, resulting in
more expected terminations overall.
Assumed percentage of married female members was decreased from 65% to
60%.
Assumed age difference was changed from separate assumptions for male
members (wives assumed to be three years younger) and female members
(husbands assumed to be four years older) to the assumption that males are two
years older than females.
The assumed percentage of female members electing Joint and Survivor
annuities was increased.
The assumed postretirement benefit increase rate was changed from 1.0% for all
years to 1.0% per year through 2064 and 2.5% thereafter.
The single discount rate changed from 5.6% to 7.5% per annum.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED DECEMBER 31, 2019
(85)
NOTE 3 PENSION INFORMATION (CONTINUED)
Public Employees Police and Fire Fund (Continued)
Changes in Plan Provisions
There have been no changes since the prior valuation.
2016 Changes
Changes in Actuarial Assumptions:
The assumed postretirement benefit increase rate was changed from 1.05% per
year through 2037 and 2.5% thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single
discount rate changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were
decreased by 0.25% to 3.25% for payroll growth and 2.5% for inflation.
Changes in Plan Provisions
There have been no changes since the prior valuation.
2015 Changes
Changes in Plan Provisions:
The postretirement benefit increase to be paid after attainment of the 90%
funding threshold was changed, from inflation up to 2.5%, to a fixed rate of 2.5%.
Changes in Actuarial Assumptions:
The assumed postretirement benefit increase rate was changed from 1.0% per
year through 2030 and 2.5% per year thereafter to 1.0% per year through 2037
and 2.5% per year thereafter.
NOTE 4 OTHER POSTEMPLOYMENT BENFITS INFORMATION
Other Postemployment Benefits Plan
2019 Changes
Changes in Actuarial Assumptions:
The discount rate was changed from 3.44% to 4.09%.
2018 Changes
Changes in Actuarial Assumptions:
The discount rate was changed from 4.50% to 3.44%.
(This page left blank intentionally.)
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
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.
Capital Project Funds
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.
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2019
(86)
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
Cash and Investments -$ 703,101$ 123,227$ 312,666$ 46,807$ 854,711$ -$ 2,040,512$
Accrued Interest - - 455 1,617 138 2,094 - 4,304
Accounts Receivable - - - 305,628 - 235,231 - 540,859
Taxes Receivable - - - - 132 - - 132
Due from Other Funds - - - - - - - -
Due from Other Governments - 15,294 - - - - - 15,294
Total Assets -$ 718,395$ 123,682$ 619,911$ 47,077$ 1,092,036$ -$ 2,601,101$
Liabilities:
Accounts Payable -$ 4,737$ -$ 354$ -$ 35,445$ -$ 40,536$
Salaries Payable - - - 2,078 - 3,502 - 5,580
Contracts Payable - - - 125,422 - - - 125,422
Total Liabilities - 4,737 - 127,854 - 38,947 - 171,538
Deferred Inflows of Resources:
Unavailable Revenue - Taxes - - - - 132 - - 132
Fund Balance:
Restricted - 713,658 123,682 492,057 46,945 1,053,089 - 2,429,431
Total Liabilities, Deferred
Inflows of Resources,
and Fund Balance -$ 718,395$ 123,682$ 619,911$ 47,077$ 1,092,036$ -$ 2,601,101$
Special Revenue
Assets
Liabilities, Deferred Inflows of
Resources, and Fund Balance
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2019
(87)
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 - - - 1,208,008 - 779,062 - 1,987,070
Intergovernmental 290,650 - - 9,315 - - - 299,965
Fines and Forfeitures - 108,868 - - - - - 108,868
Investment Income - 50 4,861 12,997 1,481 22,494 - 41,883
Other Revenues 50,304 112,061 200 - 2,398 55,112 - 220,075
Total Revenues 340,954 220,979 5,061 1,230,320 23,879 856,668 - 2,677,861
EXPENDITURES
Current:
General Government 340,954 - - - - 136,261 - 477,215
Public Safety - 140,331 - - - - - 140,331
Public Works - - - 192,742 - - 30,072 222,814
Parks - - 16,304 - 8,071 4,819 - 29,194
Capital Outlay:
Public Safety - 12,926 - - - - - 12,926
Public Works - - - 932,723 - - - 932,723
Parks - - - - - 122,813 - 122,813
Total Expenditures 340,954 153,257 16,304 1,125,465 8,071 263,893 30,072 1,938,016
NET INCREASE (DECREASE)
IN FUND BALANCE - 67,722 (11,243) 104,855 15,808 592,775 (30,072) 739,845
Fund Balance - January 1 - 645,936 134,925 387,202 31,137 460,314 30,072 1,689,586
FUND BALANCE -
DECEMBER 31 -$ 713,658$ 123,682$ 492,057$ 46,945$ 1,053,089$ -$ 2,429,431$
Special Revenue
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(88)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Intergovernmental 125,000$ 125,000$ 290,650$ 165,650$
Other Revenues - - 50,304 50,304
Total Revenues 125,000 125,000 340,954 215,954
EXPENDITURES
Current:
General Government
Contractual Services 125,000 125,000 340,954 215,954
NET INCREASE (DECREASE) IN FUND
BALANCE -$ -$ - -$
Fund Balance - January 1 -
FUND BALANCE - DECEMBER 31 -$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – POLICE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(89)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Fines and Forfeiture 55,000$ 55,000$ 108,868$ 53,868$
Investment Income 4 4 50 46
Other Revenues 112,061 224,122 112,061 (112,061)
Total Revenues 167,065 279,126 220,979 (58,147)
EXPENDITURES
Current:
Public Safety:
Contractual Services 78,000 78,000 110,047 32,047
Commodities 7,500 7,500 30,284 22,784
Capital Outlay:
Public Safety 47,500 47,500 12,926 (34,574)
Total Expenditures 133,000 133,000 153,257 20,257
NET INCREASE (DECREASE) IN FUND
BALANCE 34,065$ 146,126$ 67,722 (78,404)$
Fund Balance - January 1 645,936
FUND BALANCE - DECEMBER 31 713,658$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – BRAEMAR MEMORIAL
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(90)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Investment Income 200$ 200$ 4,861$ 4,661$
Donations 5,000 5,000 200 (4,800)
Total Revenues 5,200 5,200 5,061 (139)
EXPENDITURES
Current:
Contractual Services - - 16,304 16,304
Capital Outlay:
Parks 40,000 40,000 - (40,000)
Total Expenditures 40,000 40,000 16,304 16,304
NET INCREASE (DECREASE) IN FUND
BALANCE (34,800)$ (34,800)$ (11,243) 23,557$
Fund Balance - January 1 134,925
FUND BALANCE - DECEMBER 31 123,682$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – PEDESTRIAN AND CYCLIST SAFETY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(91)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Franchise Taxes 1,200,000$ 1,200,000$ 1,208,008$ 8,008$
Intergovernmental - - 9,315 9,315
Investment Income - - 12,997 12,997
Total Revenues 1,200,000 1,200,000 1,230,320 30,320
EXPENDITURES
Current:
Public Works:
Personal Services 133,679 133,679 102,331 (31,348)
Contractual Services 20,000 20,000 80,890 60,890
Commodities 15,000 15,000 3,653 (11,347)
Central Services 5,796 5,796 5,868 72
Capital Outlay:
Public Works 1,070,887 1,070,887 932,723 (138,164)
Total Expenditures 1,245,362 1,245,362 1,125,465 (119,897)
NET INCREASE (DECREASE) IN FUND
BALANCE (45,362)$ (45,362)$ 104,855 150,217$
Fund Balance - January 1 387,202
FUND BALANCE - DECEMBER 31 492,057$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – ARTS AND CULTURE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(92)
Actual Variance with
Original Final Amounts Final budget
REVENUES
General Property Taxes 20,000$ 20,000$ 20,000$ -$
Investment Income 75 75 1,481 1,406
Other Revenues 5,150 5,150 2,398 (2,752)
Total Revenues 25,225 25,225 23,879 (1,346)
EXPENDITURES
Current:
Parks:
Contractual Services 15,250 15,250 8,071 (7,179)
Commodities 600 600 - (600)
Total Expenditures 15,850 15,850 8,071 (7,779)
NET INCREASE (DECREASE) IN FUND
BALANCE 9,375$ 9,375$ 15,808 6,433$
Fund balance - January 1 31,137
Fund balance - December 31 46,945$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND – CONSERVATION AND SUSTAINABILITY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(93)
Actual Variance with
Original Final Amounts Final budget
REVENUES
Franchise Taxes 1,200,000$ 1,200,000$ 779,062$ (420,938)$
Investment Income - - 22,494 22,494
Other Revenues - - 55,112 55,112
Total Revenues 1,200,000 1,200,000 856,668 (343,332)
EXPENDITURES
Current:
General Government:
Personal Services 131,033 131,033 130,780 (253)
Contractual Services 202,525 202,525 - (202,525)
Commodities 400,000 400,000 - (400,000)
Central Services 5,412 5,412 5,481 69
Parks:
Contractual Services 50,000 50,000 4,819 (45,181)
Capital Outlay:
Parks 400,000 400,000 122,813 (277,187)
Total Expenditures 1,188,970 1,188,970 263,893 (925,077)
NET INCREASE (DECREASE) IN FUND
BALANCE 11,030$ 11,030$ 592,775 581,745$
Fund Balance - January 1 460,314
FUND BALANCE - DECEMBER 31 1,053,089$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
CAPITAL PROJECTS FUND – ENVIRONMENTAL EFFICIENCY
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(94)
Actual Variance with
Original Final Amounts Final budget
EXPENDITURES
Current:
Personal Services:
Contractual Services -$ -$ 30,072$ 30,072$
NET INCREASE (DECREASE) IN FUND
BALANCE -$ -$ (30,072) (30,072)$
Fund Balance - January 1 30,072
FUND BALANCE - DECEMBER 31 -$
Budgeted Amounts
MAJOR GOVERNMENTAL FUNDS
Debt Service Fund – This fund was established to account for the payment of principal and interest on
the General Obligation, Permanent Improvement Revolving, 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.
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND – DEBT SERVICE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(95)
Actual Variance with
Original Final Amounts Final budget
REVENUES
General Property Taxes 4,611,900$ 4,611,900$ 4,565,604$ (46,296)$
Special Assessments - - 271,018 271,018
Investment Income 6,000 6,000 1,571 (4,429)
Total Revenues 4,617,900 4,617,900 4,838,193 220,293
EXPENDITURES
Debt Service 7,684,860 7,684,860 7,702,002 17,142
REVENUES OVER (UNDER)
EXPENDITURES (3,066,960) (3,066,960) (2,863,809) 203,151
OTHER FINANCING SOURCES (USES)
Transfers In 3,298,163 3,298,163 3,100,000 (198,163)
Bonds Issued - - 233,947 233,947
Total Other Financing
Sources (Uses) 3,298,163 3,298,163 3,333,947 35,784
NET INCREASE (DECREASE) IN FUND
BALANCE 231,203$ 231,203$ 470,138 238,935$
Fund Balance - January 1 7,871,858
FUND BALANCE - DECEMBER 31 8,341,996$
Budgeted Amounts
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND – CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2019
(96)
Actual Variance with
Original Final Amounts Final budget
REVENUES
General Property Taxes -$ -$ 2,604,796$ 2,604,796$
Franchise Taxes 98,000 98,000 72,724 (25,276)
Special Assessments - - 4,470,539 4,470,539
License and Permits - - 73,760 73,760
Intergovernmental - - 1,802,211 1,802,211
Charges for Services - - 193,779 193,779
Investment Income 155,000 155,000 816,797 661,797
Other Revenues - - 68,570 68,570
Total Revenues 253,000 253,000 10,103,176 9,850,176
EXPENDITURES
Current:
General Government:
Personal Services - - 5,137 5,137
Contractual Services - - 168,894 168,894
Public Safety:
Contractual Services - - 39,731 39,731
Commodities - - 6,289 6,289
Public Works:
Personal Services - - 164,108 164,108
Contractual Services - - 250,423 250,423
Commodities - - 56,984 56,984
Central Services - - 1,882 1,882
Parks:
Personal Services - - 1,872 1,872
Contractual Services - - 8,530 8,530
Commodities - - 923 923
Capital Outlay:
General Government 167,500 694,500 2,132,326 1,437,826
Public Safety 366,000 366,000 3,449,492 3,083,492
Public Works 1,156,100 1,156,100 5,369,985 4,213,885
Parks 54,000 54,000 2,471,310 2,417,310
Total Expenditures 1,743,600 2,270,600 14,127,886 11,857,286
REVENUES OVER (UNDER)
EXPENDITURES (1,490,600) (2,017,600) (4,024,710) (2,007,110)
OTHER FINANCING SOURCES (USES)
Transfers In - - 3,588,864 3,588,864
Transfers Out - - (3,215,872) (3,215,872)
Sale of Capital Assets - - 287,491 287,491
Bonds Issued - - 4,766,053 4,766,053
Premium on Bonds Issued - - 799,080 799,080
Total Other Financing
Sources (Uses) - - 6,225,616 6,225,616
NET INCREASE (DECREASE) IN FUND
BALANCE (1,490,600)$ (2,017,600)$ 2,200,906 4,218,506$
Fund Balance - January 1 19,726,343
FUND BALANCE - DECEMBER 31 21,927,249$
Budgeted Amounts
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NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
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.
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
DECEMBER 31, 2019
(97)
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
ASSETS
Current Assets:
Cash and Investments 224,718$ 2,278,450$ 757,719$ 909,550$ 4,170,437$
Interest Receivable 582 7,920 2,348 2,812 13,662
Accounts Receivable - 17,979 27,587 62,078 107,644
Inventory 4,510 - - - 4,510
Total Current Assets 229,810 2,304,349 787,654 974,440 4,296,253
Noncurrent Assets:
Net Capital Assets 48,653 793,901 263,152 6,986,324 8,092,030
Total Assets 278,463 3,098,250 1,050,806 7,960,764 12,388,283
DEFERRED OUTFLOWS OF RESOURCES
OPEB Deferred Outflows 532 1,597 1,064 - 3,193
Pension Deferred Outflows 27,812 41,718 27,812 13,906 111,248
Total Deferred Outflows of Resources 28,344 43,315 28,876 13,906 114,441
LIABILITIES
Current Liabilities:
Accounts Payable 12,107 38,253 6,920 11,788 69,068
Salaries Payable 10,384 26,857 18,591 3,390 59,222
Due to Other Governments 807 8,079 1,503 4,819 15,208
Unearned Revenue 9,215 30 - 41,184 50,429
Compensated Absences Payable 1,774 15,572 37,998 - 55,344
Total Current Liabilities 34,287 88,791 65,012 61,181 249,271
Noncurrent Liabilities:
Total OPEB Liability 12,768 28,715 23,212 - 64,695
Net Pension Liability 297,891 446,836 297,891 148,945 1,191,563
Compensated Absences Payable 2,660 23,359 56,997 - 83,016
Total Noncurrent Liabilities 313,319 498,910 378,100 148,945 1,339,274
Total Liabilities 347,606 587,701 443,112 210,126 1,588,545
DEFERRED INFLOWS OF RESOURCES
OPEB Deferred Inflows 400 1,201 800 - 2,401
Pension Deferred Inflows 59,599 89,398 59,599 29,799 238,395
Total Deferred Inflows of Resources 59,999 90,599 60,399 29,799 240,796
NET POSITION
Net Investment in Capital Assets 48,653 793,901 263,152 6,986,324 8,092,030
Unrestricted (149,451) 1,669,364 313,019 748,421 2,581,353
Total Net Position (100,798)$ 2,463,265$ 576,171$ 7,734,745$ 10,673,383$
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2019
(98)
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
OPERATING REVENUES
Sales - Retail 35,159$ -$ -$ -$ 35,159$
Sales - Concessions 100 131,821 22,289 - 154,210
Memberships 15,102 117,000 - - 132,102
Admissions - 708,965 - 27,338 736,303
Building Rental - 212,685 97,196 546,637 856,518
Rental of Equipment - 11,840 153,579 - 165,419
Greens Fees - - 227,081 - 227,081
Class Registration and Other Fees 366,614 192,592 363,950 3,946 927,102
Total Operating Revenues 416,975 1,374,903 864,095 577,921 3,233,894
OPERATING EXPENSES
Cost of Sales and Services 2,758 77,286 10,105 - 90,149
Personal Services 490,328 775,761 719,003 154,392 2,139,484
Contractual Services 90,791 343,924 194,980 158,260 787,955
Commodities 54,666 143,546 141,267 29,850 369,329
Central Services 41,243 75,791 69,649 17,550 204,233
Depreciation 5,890 140,202 36,681 512,850 695,623
Total Operating Expenses 685,676 1,556,510 1,171,685 872,902 4,286,773
OPERATING INCOME (LOSS)(268,701) (181,607) (307,590) (294,981) (1,052,879)
NONOPERATING REVENUES
(EXPENSES)
Investment Income 6,217 84,559 25,043 30,085 145,904
Donations 15,425 - 13,000 - 28,425
Miscellaneous - 7,440 1,434 - 8,874
Total Nonoperating
Revenues (Expenses) 21,642 91,999 39,477 30,085 183,203
INCOME (LOSS) BEFORE
TRANSFERS (247,059) (89,608) (268,113) (264,896) (869,676)
CONTRIBUTIONS AND TRANSFERS
Transfers In 200,000 12,985 342,115 929 556,029
CHANGE IN NET POSITION (47,059) (76,623) 74,002 (263,967) (313,647)
Net Position - January 1 (53,739) 2,539,888 502,169 7,998,712 10,987,030
NET POSITION - DECEMBER 31 (100,798)$ 2,463,265$ 576,171$ 7,734,745$ 10,673,383$
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
YEAR ENDED DECEMBER 31, 2019
(99)
Total Nonmajor
Art Edinborough Centennial Sports Proprietary
Center Park Lakes Dome Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customers and Users 416,975$ 1,366,381$ 838,159$ 500,473$ 3,121,988$
Payment to Suppliers (193,812) (636,044) (432,638) (213,156) (1,475,650)
Payment to Employees (473,931) (764,302) (705,825) (149,748) (2,093,806)
Net Cash Provided (Used) by Operating Activities (250,768) (33,965) (300,304) 137,569 (447,468)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfer from Other Funds 200,000 12,985 342,115 929 556,029
Miscellaneous Received 15,425 7,440 14,434 - 37,299
Net Cash Provided by Noncapital Financing Activities 215,425 20,425 356,549 929 593,328
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of Capital Assets - (56,423) (96,821) - (153,244)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 6,233 85,358 25,473 29,758 146,822
NET INCREASE (DECREASE) IN CASH
AND INVESTMENTS (29,110) 15,395 (15,103) 168,256 139,438
Cash and Investments - January 1 253,828 2,263,055 772,822 741,294 4,030,999
CASH AND INVESTMENTS - DECEMBER 31 224,718$ 2,278,450$ 757,719$ 909,550$ 4,170,437$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) (268,701)$ (181,607)$ (307,590)$ (294,981)$ (1,052,879)$
Adjustments to Reconcile Operating Income
(Loss) to Net Cash Provided (Used) by
Operating Activities:
Depreciation 5,890 140,202 36,681 512,850 695,623
(Increase) Decrease in:
Receivables - (8,522) (25,936) (44,928) (79,386)
Inventory 2,659 - - - 2,659
Deferred Outflows of Resources 31,883 47,839 31,893 15,937 127,552
Increase (Decrease) in:
Accounts Payable (6,879) 4,900 (15,782) (5,653) (23,414)
Salaries Payable 4,656 2,684 1,245 851 9,436
Due to Other Governments (134) (397) (855) (1,843) (3,229)
Unearned Revenue - - - (32,520) (32,520)
Total OPEB Liability 269 807 539 - 1,615
Net Pension Liability 651 976 651 325 2,603
Compensated Absences 3,476 (4,641) 2,988 - 1,823
Deferred Inflows of Resources (24,538) (36,206) (24,138) (12,469) (97,351)
Total Adjustments 17,933 147,642 7,286 432,550 605,411
Net Cash Provided (Used) by Operating
Activities (250,768)$ (33,965)$ (300,304)$ 137,569$ (447,468)$
NONCASH INVESTING ACTIVITIES
Increase (Decrease) in Fair Value of
Investments (2,057)$ (28,516)$ (8,626)$ (9,575)$ (48,774)$
FIDUCIARY FUNDS
Agency Funds
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 and local governments, insurance providers, and others.
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CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
YEAR ENDED DECEMBER 31, 2019
(100)
Balance Balance
January 1 Additions Deductions December 31
POLICE SEIZURE
Assets:
Cash and Investments 11,538$ 209$ -$ 11,747$
Liabilities:
Due to Other Governmental Units 11,538$ 209$ -$ 11,747$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash and Investments 451,382$ 673,752$ 625,264$ 499,870$
Liabilities:
Accounts Payable 5,943$ 253,281$ 253,880$ 5,344$
Salaries Payable 6,399 279,928 279,851 6,476
Due to Other Governmental Units 439,040 140,543 91,533 488,050
Total Liabilities 451,382$ 673,752$ 625,264$ 499,870$
MINNESOTA TASK FORCE 1
Assets:
Due from Other Governmental Units 52,577$ 984,021$ 958,237$ 78,361$
Liabilities:
Salaries Payable 3,420$ 149,003$ 148,229$ 4,194$
Due to Other Governmental Units 49,157 835,018 810,008 74,167
Total Liabilities 52,577$ 984,021$ 958,237$ 78,361$
PAYROLL
Assets:
Cash and Investments 236,482$ 67,433,076$ 67,426,392$ 243,166$
Liabilities:
Accounts Payable 236,482$ 67,433,076$ 67,426,392$ 243,166$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and Investments 699,402$ 68,107,037$ 68,051,656$ 754,783$
Due from Other Governmental Units 52,577 984,021 958,237 78,361
Total Assets 751,979$ 69,091,058$ 69,009,893$ 833,144$
Liabilities:
Accounts Payable 242,425$ 67,686,357$ 67,680,272$ 248,510$
Salaries Payable 9,819 428,931 428,080 10,670
Due to Other Governmental Units 499,735 975,770 901,541 573,964
Total Liabilities 751,979$ 69,091,058$ 69,009,893$ 833,144$
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES, AND TAX CAPACITY RATES
(SHOWN BY YEAR OF TAX COLLECTIBILITY)
(101)
2016 2017 2018 2019 2020
Total Tax Capacity 125,663,820$ 132,180,439$ 141,934,212$ 151,279,391$ 157,910,360$
Increment Valuation (2,493,368) (3,474,097) (4,525,127) (5,229,452) (5,929,603)
Contribution to Fiscal
Disparities Pool (10,679,187) (11,851,919) (12,166,916) (13,440,625) (14,369,737)
Tax Capacity Used
for Rate Calculation 112,491,265 116,854,423 125,242,169 132,609,314 137,611,020
Fiscal Disparities Distribution 2,636,381 2,901,964 3,210,559 3,473,642 3,700,282
Adjusted Net Tax Capacity 115,127,646$ 119,756,387$ 128,452,728$ 136,082,956$ 141,311,302$
Tax Levies:
General Fund 25,023,952$ 26,860,319$ 28,493,077$ 30,009,121$ 32,021,243$
Arts and Culture Fund 20,000 20,000 20,000 20,000 20,000
Equipment 1,680,000 2,251,550 2,567,000 2,630,000 2,830,000
Debt Service 4,503,521 4,595,500 4,579,700 4,611,900 4,596,300
HRA Operating - 95,000 125,000 160,000 192,000
Total Certified Tax Levies 31,227,473 33,822,369 35,784,777 37,431,021 39,659,543
Referendum Market Value Levy 571,650 - - -
Total Levy 31,799,123$ 33,822,369$ 35,784,777$ 37,431,021$ 39,659,543$
Tax Capacity Rate:
General Fund Revenue 23.223% 24.348% 24.187% 23.992% 24.690%
Bonds and Interest 3.914% 3.841% 3.564% 3.388% 3.255%
HRA 0.000% 0.082% 0.098% 0.119% 0.137%
Total Tax Capacity Rate 27.137% 28.271% 27.849% 27.499% 28.082%
Market Value Rate 0.00550% 0.00000% 0.00000% 0.00000% 0.00000%
CITY OF EDINA, MINNESOTA
COMBINING SCHEDULE OF BONDED INDEBTEDNESS
DECEMBER 31, 2019
(102)
Final
Interest Maturity Original
Rates Date Date Issue Redeemed
General Obligation Bonds:
GO Capital Improvement Plan, Series 2010A 2.00 - 4.00 11/18/10 02/01/21 8,285,000$ 5,705,000$
GO Capital Improvement Plan, Series 2013A -
Refunding 3.00 - 3.50 10/10/13 02/01/30 5,710,000 1,440,000
GO Refunding, Series 2016A 2.00 - 3.00 07/06/16 02/01/28 3,635,000 285,000
GO Refunding, Series 2017C 2.05 - 4.00 12/14/17 02/01/29 8,955,000 -
GO Equipment Certificate, Series 2019A 5.00 06/13/19 02/01/29 - -
Total General Obligation Bonds 26,585,000 7,430,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 1,325,000
GO Permanent Improvement Revolving
Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 1,565,000
GO Permanent Improvement Revolving
Series 2012A 3.00 - 4.00 11/15/12 02/01/29 2,675,000 590,000
GO Permanent Improvement Revolving
Series 2012A - Refunding 3.00 - 4.00 11/15/12 02/01/19 1,990,000 1,765,000
GO Permanent Improvement Revolving
Series 2013A 3.00 - 3.50 10/10/13 02/01/30 2,555,000 425,000
GO Permanent Improvement Revolving
Series 2014B - Refunding 2.00 - 3.00 12/11/14 02/01/20 4,075,000 2,350,000
GO Permanent Improvement Revolving
Series 2015A 2.00 - 4.00 07/09/15 02/01/32 6,545,000 355,000 GO Permanent Improvement Revolving
Series 2015A - Parking 2.00 - 4.00 07/09/15 02/01/36 2,495,000 190,000
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 2,210,000 - GO Permanent Improvement Revolving
Series 2019A 3.00 - 5.00 06/13/19 02/01/36 - -
Total PIR Bonds 34,105,000 8,565,000
Public Project Revenue Bonds:
Taxable Public Project Revenue, Series 2009A 2.10 - 4.55 11/24/09 02/01/30 2,595,000 1,075,000
HRA Public Project Revenue, Series 2014A 2.00 - 3.625 07/15/14 02/01/35 16,155,000 1,880,000
HRA Public Project Revenue, Series 2015A -
Refunding 2.50 - 3.00 07/09/15 05/01/26 3,490,000 845,000
Total Public Project Revenue Bonds 22,240,000 3,800,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A 7.00 02/25/12 01/01/23 33,690 20,214
Revenue Bonds:
Recreational Facility Bonds, Series 2012B .45 - 1.60 11/15/12 02/01/20 815,000 610,000
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 1,125,000 245,000
Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 2,140,000 240,000
Recreational Facility Bonds, Series 2017B 3.00 - 4.00 06/29/17 02/01/33 7,425,000 80,000
Recreational Facility Bonds, Series 2017D -
Refunding 2.00 12/20/17 02/01/30 1,640,000 57,000
Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 6,415,000
Utility Revenue Bonds, Series 2012A 3.00 - 4.00 11/15/12 02/01/23 6,100,000 2,745,000
Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 2,160,000
Utility Revenue Bonds, Series 2014B - Refunding 3.00 12/11/14 02/01/19 5,710,000 4,205,000
Utility Revenue Bonds, Series 2015A 2.00 - 4.00 07/09/15 02/01/25 5,235,000 1,485,000
Utility Revenue Bonds, Series 2016A 2.00 - 3.00 07/06/16 02/01/27 8,775,000 765,000
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 3,305,000 -
Utility Revenue Bonds, Series 2019A 5.00 06/13/19 02/01/30 - -
Total Public Project Revenue Bonds 67,875,000 19,007,000
Total - Bonded indebtedness 150,838,690$ 38,822,214$
Prior Years
CITY OF EDINA, MINNESOTA
COMBINING SCHEDULE OF BONDED INDEBTEDNESS (CONTINUED)
DECEMBER 31, 2019
(103)
Principal Interest Interest
Outstanding Payable Due Due Payable
12/31/2018 Issued Payments 12/31/2019 In 2020 In 2020 to Maturity
2,580,000$ -$ 825,000$ 1,755,000$ 860,000$ 53,000$ 70,900$
4,270,000 - 305,000 3,965,000 315,000 112,950 699,537
3,350,000 - 295,000 3,055,000 305,000 77,175 362,350
8,955,000 - 630,000 8,325,000 700,000 267,050 1,323,153
- 2,805,000 - 2,805,000 - 158,950 835,825
19,155,000 2,805,000 2,055,000 19,905,000 2,180,000 669,125 3,291,765
980,000 - 235,000 745,000 240,000 18,150 33,375
1,755,000 - 335,000 1,420,000 340,000 37,500 86,700
2,085,000 - 160,000 1,925,000 165,000 55,275 302,475
225,000 - 225,000 - - - -
2,130,000 - 150,000 1,980,000 155,000 56,425 349,300
1,725,000 - 845,000 880,000 880,000 8,800 8,800
6,190,000 - 365,000 5,825,000 370,000 184,575 1,347,638
2,305,000 - 100,000 2,205,000 100,000 73,250 716,350
3,940,000 - 215,000 3,725,000 220,000 99,800 766,500
1,995,000 - - 1,995,000 100,000 65,900 516,400
2,210,000 - - 2,210,000 - 70,843 635,709
- 2,195,000 - 2,195,000 - 100,697 846,222
25,540,000 2,195,000 2,630,000 25,105,000 2,570,000 771,215 5,609,469
1,520,000 - 125,000 1,395,000 130,000 55,321 282,297
14,275,000 - 660,000 13,615,000 680,000 423,069 3,931,603
2,645,000 - 295,000 2,350,000 305,000 62,300 233,812
18,440,000 - 1,080,000 17,360,000 1,115,000 540,690 4,447,712
13,476 - 13,476 - - - -
205,000 - 130,000 75,000 75,000 600 600
2,100,000 - - 2,100,000 60,000 52,894 418,122
880,000 - 70,000 810,000 70,000 24,465 138,022
1,900,000 - 125,000 1,775,000 125,000 50,094 343,397
7,345,000 - 400,000 6,945,000 420,000 248,100 1,762,950
1,583,000 - 124,000 1,459,000 126,000 28,550 165,850
4,815,000 - 1,160,000 3,655,000 1,185,000 91,875 166,575
3,355,000 - 630,000 2,725,000 655,000 71,925 166,275
3,520,000 - 550,000 2,970,000 560,000 74,750 212,825
1,505,000 - 1,505,000 - - - -
3,750,000 - 495,000 3,255,000 510,000 98,700 349,100
8,010,000 - 795,000 7,215,000 815,000 182,687 760,681
6,595,000 - 550,000 6,045,000 570,000 215,100 1,028,150
3,305,000 - - 3,305,000 285,000 105,225 591,150
- 5,815,000 - 5,815,000 - 329,517 1,899,642
48,868,000 5,815,000 6,534,000 48,149,000 5,456,000 1,574,482 8,003,339
112,016,476$ 10,815,000$ 12,312,476$ 110,519,000$ 11,321,000$ 3,555,512$ 21,352,285$
2019
CITY OF EDINA, MINNESOTA SCHEDULE OF BALANCE SHEET ACCOUNTS TAX INCREMENT FINANCING DISTRICTS DECEMBER 31, 2019 (104) Centennial Valley View Southdale 2 Pentagon Park Grandview 2 66th West 50th and France 2 West 76th Street TotalDistrict District District District District District District District Tax IncrementNo. 1203 No. 1207 No. 1208 No. 1211 No. 1212 No. 1214 No. 1215 No. 1217 Financing DistrictsASSETSCash and Investments 441,231$ 350,521$ 11,475,685$ 418,460$ 417,660$ 20,232$ -$ (517)$ 13,123,272$ Accrued Interest - 1,889 35,701 640 1,332 3 - - 39,565 Due from Other Districts 6,900,000 - 275,000 - - - - - 7,175,000 Due from Other Governments - - 6,495 3,898 - - - - 10,393 Total Assets7,341,231$ 352,410$ 11,792,881$ 422,998$ 418,992$ 20,235$ -$ (517)$ 20,348,230$ LIABILITIESAccounts Payable 49,964$ -$ 11,285$ -$ -$ -$ -$ -$ 61,249$ Salaries Payable 594 - - - - - - - 594 Contracts Payable - 15,731 - - - - - - 15,731 Due to Other Districts - - 2,150,000 100,000 500,000 275,000 4,150,000 - 7,175,000 Unearned Revenue 113,000 - - - - - - - 113,000 Total Liabilities 163,558 15,731 2,161,285 100,000 500,000 275,000 4,150,000 - 7,365,574 FUND BALANCERestricted 7,177,673 336,679 9,631,596 322,998 (81,008) (254,765) (4,150,000) (517) 12,982,656 Total Liabilities andFund Balance 7,341,231$ 352,410$ 11,792,881$ 422,998$ 418,992$ 20,235$ -$ (517)$ 20,348,230$
CITY OF EDINA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TAX INCREMENT FINANCING DISTRICTS YEAR ENDED DECEMBER 31, 2019 (105) Total TaxCentennial Valley View Southdale 2 Pentagon Park Grandview 2 66th West 50th and France West 7th Street IncrementDistrict District District District District District France 2 District District FinancingNo. 1203 No. 1207 No. 1208 No. 1211 No. 1211 No. 1214 No. 1215 No. 1217 DistrictsREVENUESTax Increment Collections -$ -$ 5,045,361$ 323,691$ 56,789$ 21,267$ -$ -$ 5,447,108$ Investment Income (1,899) 20,139 382,297 6,883 14,304 32 - - 421,756 Total Revenues (1,899) 20,139 5,427,658 330,574 71,093 21,299 - - 5,868,864 EXPENDITURESCurrent:General Government 161,234 - 436,845 15,102 275 - - 517 613,456 Capital Outlay:General Government 863,349 309,656 2,893,443 - - - - - 4,066,448 Total Expenditures 1,024,583 309,656 3,330,288 15,102 275 - - 517 4,679,904 REVENUES OVER (UNDER)EXPENDITURES(1,026,482) (289,517) 2,097,370 315,472 70,818 21,299 - (517) 1,188,960 OTHER FINANCING SOURCES (USES)Transfers In (Out) (1,983,784) - - (11,662) - - 1,983,784 - (11,662) Sale of Capital Assets 884,900 - - - - - - - 884,900 Interfund Loan Interest 111,000 - (111,000) - - - - - - Total Other Financing Sources (Uses) (987,884) - (111,000) (11,662) - - 1,983,784 - 873,238 NET INCREASE (DECREASE) IN FUND BALANCE(2,014,366) (289,517) 1,986,370 303,810 70,818 21,299 1,983,784 (517) 2,062,198 Fund Balance - January 1 9,192,039 626,196 7,645,226 19,188 (151,826) (276,064) (6,133,784) - 10,920,975 FUND BALANCE - DECEMBER 317,177,673$ 336,679$ 9,631,596$ 322,998$ (81,008)$ (254,765)$ (4,150,000)$ (517)$ 12,983,173$
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.
Contents Page
Financial Trends 106
These schedules contain trend information to help the reader understand how the
City’s financial performance and well-being have changed over time.
Revenue Capacity 114
These schedules contain information to help the reader assess the City’s most
significant local revenue source, the property tax.
Debt Capacity 118
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.
Demographic and Economic Information 123
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place.
Operating Information 124
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
(This page left blank intentionally.)
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(106)
2010 2011 2012 2013a
GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets 69,783,162$ 75,045,018$ 78,644,392$ 83,842,970$
Restricted 9,952,443 22,915,776 23,215,910 20,289,579
Unrestricted 41,709,528 29,544,149 29,587,700 33,242,317
Total Governmental
Activities Net Position 121,445,133$ 127,504,943$ 131,448,002$ 137,374,866$
BUSINESS-TYPE ACTIVITIES
Net Investment in Capital Assets 48,807,806$ 56,877,100$ 63,766,144$ 66,126,387$
Restricted 618,852 623,099 876,909 611,377
Unrestricted 17,041,122 12,926,674 14,390,609 16,867,459
Total Business-Type
Activities Net Position 66,467,780$ 70,426,873$ 79,033,662$ 83,605,223$
PRIMARY GOVERNMENT
Net Investment in Capital Assets 118,590,968$ 131,922,118$ 142,410,536$ 149,969,357$
Restricted 10,571,295 23,538,875 24,092,819 20,900,956
Unrestricted 58,750,650 42,470,823 43,978,309 50,109,776
Total Primary Government
Net Position 187,912,913$ 197,931,816$ 210,481,664$ 220,980,089$
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
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(107)
2014 2015b 2016 2017 2018c 2019
85,708,114$ 85,838,618$ 93,247,973$ 96,149,011$ 107,133,225$ 110,670,335$
18,268,724 16,925,171 20,892,680 22,840,869 25,017,586 36,999,647
31,316,605 21,957,830 22,146,168 26,412,441 31,277,308 27,680,337
135,293,443$ 124,721,619$ 136,286,821$ 145,402,321$ 163,428,119$ 175,350,319$
75,803,672$ 83,395,794$ 85,158,869$ 82,338,560$ 81,980,815$ 80,452,583$
619,295 793,664 804,393 1,338,276 1,360,336 1,360,336
21,176,026 16,405,405 17,300,872 22,443,806 27,285,949 32,045,171
97,598,993$ 100,594,863$ 103,264,134$ 106,120,642$ 110,627,100$ 113,858,090$
161,511,786$ 169,234,412$ 178,406,842$ 178,487,571$ 189,114,040$ 191,122,918$
18,888,019 17,718,835 21,697,073 24,179,145 26,377,922 38,359,983
52,492,631 38,363,235 39,447,040 48,856,247 58,563,257 59,725,508
232,892,436$ 225,316,482$ 239,550,955$ 251,522,963$ 274,055,219$ 289,208,409$
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(108)
2010 2011 2012 2013a
EXPENSES
Governmental Activities:
General Government 6,961,082$ 7,013,231$ 12,598,979$ 8,256,261$
Public Safety 15,543,594 16,024,575 16,598,423 17,117,693
Public Works 8,558,363 9,193,336 9,437,285 11,502,250
Parks 5,608,758 5,540,585 5,904,724 6,132,709
Interest on Long-Term Debt 2,528,424 2,339,370 2,222,392 2,024,749
Total Governmental Activities Expenses 39,200,221 40,111,097 46,761,803 45,033,662
Business-Type Activities:
Utilities 11,848,538 12,130,685 12,610,875 13,748,186
Liquor 11,594,643 11,727,106 11,740,744 12,261,413
Aquatic Center 769,608 718,027 866,944 822,932
Golf Course 3,561,573 3,390,949 3,293,192 3,199,815
Arena 1,527,536 1,689,001 2,182,200 2,272,510
Community Activity Centers 2,965,243 2,998,915 2,842,139 2,967,115
Total Business-Type Activities Expenses 32,267,141 32,654,683 33,536,094 35,271,971
Total Primary Government Expenses 71,467,362$ 72,765,780$ 80,297,897$ 80,305,633$
PROGRAM REVENUES
Governmental Activities:
Charges for Services:
General Government 946,107$ 969,745$ 1,142,984$ 1,259,908$
Public Safety 5,448,505 5,988,485 6,549,929 7,410,755
Other Activities 723,559 775,676 913,864 846,999
Operating Grants and Contributions 1,162,411 1,392,892 1,685,026 2,283,007
Capital Grants and Contributions 13,325,431 5,770,912 9,137,011 6,372,735
Total Governmental Activities Program
Revenues 21,606,013 14,897,710 19,428,814 18,173,404
Business-Type Activities:
Charges for Services:
Utilities 15,036,016 15,873,937 17,729,589 17,831,225
Liquor 12,857,064 13,172,484 13,230,941 13,711,557
Aquatic Center 945,529 913,383 1,001,946 928,055
Golf Course 3,443,204 3,285,741 3,225,591 2,711,743
Arena 1,301,506 1,315,435 1,452,435 1,942,971
Community Activity Centers 2,194,476 2,331,136 2,399,090 2,625,633
Operating Grants and Contributions 373,230 135,428 1,042,195 516,242
Capital Grants and Contributions - - - -
Total Business-Type Activities Program
Revenues 36,151,025 37,027,544 40,081,787 40,267,426
Total Primary Government Program
Revenues 57,757,038$ 51,925,254$ 59,510,601$ 58,440,830$
NET (EXPENSE) REVENUE
Governmental Activities (17,594,208)$ (25,213,387)$ (27,332,989)$ (26,860,258)$
Business-Type Activities 3,883,884 4,372,861 6,545,693 4,995,455
Total Primary Government Net Expense (13,710,324)$ (20,840,526)$ (20,787,296)$ (21,864,803)$
GENERAL REVENUES AND OTHER CHANGES
IN NET POSITION
Governmental Activities:
Property Taxes 25,122,113$ 25,040,871$ 25,884,662$ 26,894,161$
Tax Increment Collections 4,488,073 4,083,345 3,536,935 3,981,938
Franchise Taxes 692,288 722,160 815,530 1,891,967
Lodging Taxes - - - -
Unrestricted Investment Earnings 474,444 601,250 341,986 (96,390)
Gain on Disposal of Capital Assets 35,594 131,365 - 16,654
Insurance Recovery - - - 816,654
Transfers 765,994 694,206 696,935 133,907
Total Governmental Activities 31,578,506 31,273,197 31,276,048 33,638,891
Business-Type Activities:
Property Taxes - - - -
Unrestricted Investment Earnings 205,965 280,438 113,177 (77,848)
Gain (Loss) on Disposal of Capital Assets 26,574 - 2,644,854 17,587
Transfers (765,994) (694,206) (696,935) (133,907)
Total Business-Type Activities (533,455) (413,768) 2,061,096 (194,168)
Total Primary Government 31,045,051$ 30,859,429$ 33,337,144$ 33,444,723$
CHANGE IN NET POSITION
Governmental Activities 13,984,298$ 6,059,810$ 3,943,059$ 6,778,633$
Business-Type Activities 3,350,429 3,959,093 8,606,789 4,801,287
Total Primary Government 17,334,727$ 10,018,903$ 12,549,848$ 11,579,920$
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
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION (CONTINUED)
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(109)
2014b 2015c 2016 2017 2018d 2019
8,522,319$ 8,518,236$ 9,587,567$ 9,164,272$ 10,964,266$ 11,252,538$
18,145,498 19,507,770 20,243,209 21,815,101 20,971,184 27,496,563
15,553,852 15,284,777 19,444,472 17,750,505 14,170,463 10,979,180
3,330,781 3,385,367 3,822,716 4,222,431 7,235,405 7,554,919
1,989,863 2,180,678 2,133,474 1,996,354 1,726,901 1,999,318
47,542,313 48,876,828 55,231,438 54,948,663 55,068,219 59,282,518
14,207,197 14,963,304 16,780,474 17,361,659 18,045,516 19,303,212
12,393,218 11,818,602 12,130,254 12,007,885 11,995,159 11,970,986
827,485 872,960 915,560 1,015,328 996,671 979,376
3,342,544 3,409,343 3,041,169 3,469,121 2,464,563 4,009,097
2,375,173 2,642,097 2,842,660 2,961,787 2,996,844 2,982,674
2,975,782 3,436,325 3,853,091 4,095,309 4,096,452 4,286,773
36,121,399 37,142,631 39,563,208 40,911,089 40,595,205 43,532,118
83,663,712$ 86,019,459$ 94,794,646$ 95,859,752$ 95,663,424$ 102,814,636$
1,529,555$ 1,322,430$ 1,453,009$ 1,142,120$ 2,395,535$ 1,204,947$
8,102,352 8,683,465 8,996,046 9,627,122 9,978,816 9,747,031
960,261 1,158,207 1,289,770 1,288,452 1,202,732 1,265,918
1,578,538 3,122,178 2,751,495 2,194,336 4,028,247 4,271,243
8,244,695 10,044,077 15,252,861 9,775,184 6,695,172 6,625,040
20,415,401 24,330,357 29,743,181 24,027,214 24,300,502 23,114,179
17,550,802 19,335,443 19,505,905 21,361,972 22,697,468 21,875,655
13,515,168 12,462,387 12,937,092 12,991,764 13,401,754 13,094,407
918,412 971,936 956,068 962,857 997,727 996,778
3,229,348 2,857,190 2,809,702 1,254,412 1,396,173 3,395,815
2,092,567 2,316,853 2,314,892 2,508,192 2,629,945 2,516,629
2,583,257 3,119,789 3,190,775 3,348,628 3,303,278 3,240,000
428,416 595,141 445,464 179,086 545,682 44,953
- - - 904,201 - 692,281
40,317,970 41,658,739 42,159,898 43,511,112 44,972,027 45,856,518
60,733,371$ 65,989,096$ 71,903,079$ 67,538,326$ 69,272,529$ 68,970,697$
(27,126,912)$ (24,546,471)$ (25,488,257)$ (30,921,449)$ (30,767,717)$ (36,168,339)$
4,196,571 4,516,108 2,596,690 2,600,023 4,376,822 2,324,400
(22,930,341)$ (20,030,363)$ (22,891,567)$ (28,321,426)$ (26,390,895)$ (33,843,939)$
27,062,224$ 29,632,072$ 31,396,421$ 33,665,029$ 35,616,432$ 37,133,269$
5,052,705 1,792,896 2,779,097 3,422,898 4,997,706 5,447,108
2,055,396 2,089,038 2,346,423 2,408,884 2,559,443 2,881,726
11,301 22,716 22,624 21,006 25,298 24,119
440,051 195,620 344,277 514,073 901,405 2,037,306
29,037 41,900 65,044 - 5,032,815 408,659
- - - - - -
(9,605,225) (2,230,966) 99,573 5,059 305,428 158,352
25,045,489 31,543,276 37,053,459 40,036,949 49,438,527 48,090,539
- - - - - -
191,974 91,907 136,208 254,990 481,754 1,064,942
- 39,427 35,946 6,554 - -
9,605,225 2,230,966 (99,573) (5,059) (305,428) (158,352)
9,797,199 2,362,300 72,581 256,485 176,326 906,590
34,842,688$ 33,905,576$ 37,126,040$ 40,293,434$ 49,614,853$ 48,997,129$
(2,081,423)$ 6,996,805$ 11,565,202$ 9,115,500$ 18,670,810$ 11,922,200$
13,993,770 6,878,408 2,669,271 2,856,508 4,553,148 3,230,990
11,912,347$ 13,875,213$ 14,234,473$ 11,972,008$ 23,223,958$ 15,153,190$
Fiscal Year
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(110)
2010 2011b 2012 2013
GENERAL FUND
Reserved 10,258$ -$ -$ -$
Unreserved 12,868,952 - - -
Nonspendable - 10,871 413,200 13,322
Restricted - 178,295 880,395 185,395
Assigned - 1,539,286 1,643,077 1,559,461
Unassigned - 11,744,764 11,902,462 12,573,457
Total General Fund 12,879,210$ 13,473,216$ 14,839,134$ 14,331,635$
ALL OTHER GOVERNMENTAL
FUNDS
Reserved 9,460,834$ -$ -$ -$
Unreserved, Reported in:
Special Revenue Funds 15,333,460 - - -
Capital Projects Funds 12,150,968 - - -
Restricted, Reported in:
Special Revenue Funds - 17,178,857 13,185,962 13,040,516
Debt Service Funds - 8,068,183 9,704,408 6,246,769
Construction Funds - 2,087,548 2,759,463 3,318,947
Assigned, Reported in:
Capital Projects Funds - 8,098,935 7,159,890 8,354,268
Unassigned, Reported in:
Special Revenue Funds - - - -
Total all Other Governmental
Funds 36,945,262$ 35,433,523$ 32,809,723$ 30,960,500$
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
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(111)
2014c 2015 2016c 2017c 2018 2019
-$ -$ -$ -$ -$ -$
- - - - - -
240,291 529,513 27,643 13,124 - 28,403
757,673 417,673 927,673 961,133 961,133 58,086
1,566,329 1,547,398 1,612,240 1,739,079 2,105,741 2,093,760
11,429,444 11,825,799 14,624,755 15,656,518 16,812,851 16,411,412
13,993,737$ 14,320,383$ 17,192,311$ 18,369,854$ 19,879,725$ 18,591,661$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
9,719,309 9,405,757 12,673,995 14,453,556 14,755,259 14,723,598
12,678,291 7,134,575 11,187,468 17,000,806 7,871,858 10,771,427
6,598,832 551,132 209,510 78,702 30,072 -
7,046,610 13,127,881 13,109,438 15,710,621 19,726,343 21,927,249
- - (190,845) - - -
36,043,042$ 30,219,345$ 36,989,566$ 47,243,685$ 42,383,532$ 47,422,274$
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(112)
2010 2011 2012 2013
REVENUES
General Property Taxes 25,122,113$ 24,972,166$ 25,838,422$ 26,891,756$
Tax Increment Collections 4,488,073 4,083,345 3,536,935 3,981,938
Franchise Taxes 692,288 722,160 815,530 1,891,967
Lodging Fees - - - -
Special Assessments 6,746,186 4,502,112 4,975,641 4,884,510
License and Permits 2,410,314 2,724,763 3,155,351 4,150,512
Intergovernmental 3,726,849 3,059,964 2,032,966 2,509,166
Charges for Services 3,014,894 3,181,961 3,708,482 3,667,612
Fines and Forfeitures 1,203,767 1,243,426 1,195,054 1,109,710
Investment Income 474,444 601,250 341,986 (96,390)
Rental of Property 426,517 539,091 506,276 518,862
Parkland Dedication - - 702,100 -
Other Revenues 413,400 156,231 240,841 278,607
Total Revenues 48,718,845 45,786,469 47,049,584 49,788,250
EXPENDITURES
General Government 6,523,398 5,739,481 6,624,573 7,351,556
Public Safety 14,177,387 14,668,772 14,985,068 15,859,622
Public Works 5,898,023 6,000,539 6,277,506 7,018,614
Parks 3,524,950 3,633,922 3,852,260 3,915,568
Capital Outlay 13,505,827 14,235,496 13,622,443 10,690,207
Debt Service:
Principal 2,975,000 4,480,000 6,620,000 14,531,375
Interest and Other Charges 2,584,006 2,278,068 2,292,394 2,270,259
Total Expenditures 49,188,591 51,036,278 54,274,244 61,637,201
REVENUES OVER (UNDER)
EXPENDITURES (469,746) (5,249,809) (7,224,660) (11,848,951)
OTHER FINANCING SOURCES (USES)
Utility Contributions from Other Funds - - - -
Transfers In 2,903,762 5,615,669 4,495,940 3,472,964
Transfers Out (2,137,768) (4,921,463) (3,799,005) (3,339,057)
Sale of Capital Assets 134,329 209,773 94,975 61,642
Insurance Recovery - - - 816,654
Loans Issued - - - -
Bonds Issued 2,535,000 3,320,000 2,748,720 2,555,000
Refunding Bonds Issued 8,285,000 - 1,990,000 5,710,000
Premium on Bonds Issued 898,658 108,097 436,148 275,360
Discount on Bonds Issued - - - (60,334)
Payment to Refunding Escrow (9,094,822) - - -
Total Other Financing
Sources (Uses) 3,524,159 4,332,076 5,966,778 9,492,229
NET CHANGE IN FUND BALANCES 3,054,413$ (917,733)$ (1,257,882)$ (2,356,722)$
Debt Service as a Percentage of
Fiscal Year
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(113)
2014 2015 2016 2017 2018 2019
26,988,493$ 29,535,270$ 31,354,023$ 33,696,550$ 35,613,883$ 37,093,074$
5,052,705 1,792,896 2,779,097 3,422,898 4,997,706 5,447,108
2,055,396 2,089,038 2,346,423 2,408,884 2,559,443 2,881,726
11,301 22,716 22,624 21,006 25,298 24,119
4,606,010 4,132,128 5,276,194 5,330,766 4,747,205 4,741,557
4,583,183 4,907,364 5,268,519 5,403,222 5,912,757 5,183,754
3,961,509 6,093,966 5,775,114 3,687,262 5,124,573 3,687,620
4,270,720 4,414,991 4,689,389 4,917,173 4,898,548 5,431,941
1,163,907 1,195,271 1,016,817 1,135,986 1,122,426 1,097,122
440,051 195,314 344,344 512,448 889,550 1,989,881
546,874 416,522 514,955 459,099 632,011 487,797
757,278 800,000 1,250,000 33,460 - -
78,775 361,425 2,599,830 761,281 990,277 600,905
54,516,202 55,956,901 63,237,329 61,790,035 67,513,677 68,666,604
7,625,826 6,337,944 6,815,725 7,065,729 8,630,290 8,973,194
16,647,821 17,537,528 18,554,507 19,233,386 20,323,076 21,701,254
10,201,335 10,578,472 10,474,008 11,524,896 8,682,928 8,998,768
1,341,884 1,416,858 1,529,384 1,695,397 5,202,962 5,453,778
19,883,144 19,912,565 16,787,575 11,053,212 19,752,836 18,558,023
4,096,375 13,276,375 5,246,375 5,496,375 5,523,369 5,778,476
1,923,647 2,375,613 2,360,827 2,359,551 2,099,594 1,923,526
61,720,032 71,435,355 61,768,401 58,428,546 70,215,055 71,387,019
(7,203,830) (15,478,454) 1,468,928 3,361,489 (2,701,378) (2,720,415)
- - - - 37,978 115,494
1,404,975 3,232,770 3,504,542 5,130,405 5,464,771 6,738,864
(11,010,200) (6,472,066) (3,404,969) (5,057,263) (5,139,771) (6,604,736)
70,603 78,509 65,044 84,388 6,201,630 1,172,391
- 167,167 - - - -
- - - - - 750,000
16,155,000 9,040,000 3,940,000 1,995,000 2,210,000 5,000,000
5,180,000 3,490,000 3,635,000 8,955,000 - -
327,987 492,838 450,409 798,791 74,787 799,080
(179,891) (47,815) (16,805) (51,148) (18,299) -
- - - (3,785,000) (9,480,000) -
11,948,474 9,981,403 8,173,221 8,070,173 (648,904) 7,971,093
4,744,644$ (5,497,051)$ 9,642,149$ 11,431,662$ (3,350,282)$ 5,250,678$
Fiscal Year
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE, AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(114)
City Tax City
Used Adjusted Capacity Referendum
Estimated Limited Taxable Total for Rate Net Rate Rate
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
12,370,205 12,370,205 12,271,673 151,279 132,609 136,083 27.499% 0.00000% 3.025
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
2010
2011
2012
2019
2018
Year
2016
2017
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
(115)
Total
Basic Debt HRA Total Tax Direct and
Rate Rate Rate Capacity RMV Hennepin Tax Cap. RMV Other Overlap
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%
23.992% 3.388% 0.119% 27.499% 0.000% 41.861% 30.589% 0.210% 9.714% 109.663%
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.
2019
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
2018
2013
2014
2010
2011
2012
2015
2016
2017
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
(116)
Percentage Percentage
of Total of Total
Tax Capacity Rank Capacity Tax Capacity Rank Capacity
Southdale Shopping Center 2,903,016$ 1 1.92% 2,988,940$ 1 2.47%
Galleria Shopping Center 2,704,861 2 1.79% 1,188,800 2 0.98%
Southdale Medical Building 1,421,442 3 0.94% 620,285 5 0.51%
Centennial Lakes Retail 1,132,288 4 0.75% 679,250 4 0.56%
Southdale Office Center 1,002,690 5 0.66% 782,790 3 0.65%
Onyx Apartments 850,353 6 0.56% DNA DNA DNA
Centennial Lakes Phase V 779,680 7 0.52% 527,364 7 0.44%
Centennial Lakes Phase IV 764,580 8 0.51% 517,146 8 0.43%
One Southdale Place Apartments 723,288 9 0.48% DNA DNA DNA
7700 France 643,594 10 0.43% DNA DNA DNA
National Car DNA DNA 536,870 6 0.44%
Macy's Department Stores DNA DNA 439,250 9 0.36%
Target DNA DNA 344,580 10 0.29%
Totals 12,925,792$ 8.54% 8,625,275$ 7.14%
Source: City of Edina Assessing Office
DNA: Data is not available
20102019
Taxpayer
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(117)
Total Collections in
Tax Percentage Subsequent Percentage
Levy Amount of Levy Years Amount of Levy
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% (44,905) 27,281,187 99.37%
29,700,010 29,497,362 99.32% (82,876) 29,414,486 99.04%
31,799,123 31,383,415 98.69% 39,772 31,423,187 98.82%
33,822,369 33,645,085 99.48% (64,661) 33,580,424 99.28%
35,784,777 35,551,096 99.35% (48,404) 35,502,692 99.21%
37,431,021 37,104,274 99.13% - 37,104,274 99.13%
Source: Hennepin County Taxpayer Services.
Collected within the
Fiscal Year of the Levy
2012
2010
2011
2019
Total Collections to Date
Taxes
Payable
2013
2014
2018
2016
2015
2017
CITY OF EDINA, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(118)
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
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 3.56% 2,004
28,318 11,787 550 22,067 74 5,952 33,160 101,908 3.21% 2,087
32,035 5,627 - 18,889 62 6,540 29,635 92,788 3.14% 1,885
30,806 21,445 - 21,554 51 6,249 39,633 119,738 3.84% 2,382
27,225 21,300 - 24,776 40 8,055 32,575 113,971 3.53% 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 3.75% 2,545
20,115 18,434 - 26,415 13 14,696 36,768 116,441 3.35% 2,216
21,211 17,495 - 26,323 - 12,423 39,230 116,682 3.14% 2,190
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.
2019
Business-Type Activities
Year
Fiscal
2018
2010
2011
2012
2015
2016
2013
2014
2017
Governmental Activities
CITY OF EDINA, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(119)
Less: Amounts Available Percentage of
General Obligation Debt a in Debt Service Fund b Total Property Value c Per Capita d
31,800$ 6,105$ 25,695$ 0.26% 536$
29,700 8,068 21,632 0.23% 448
27,680 9,704 17,976 0.20% 368
31,390 6,247 25,143 0.28% 511
30,200 12,678 17,522 0.19% 349
26,710 7,135 19,575 0.20% 386
27,935 11,187 16,748 0.16% 323
30,630 17,001 13,629 0.13% 260
19,155 7,872 11,283 0.10% 215
19,905 8,342 11,563 0.09% 217
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.
2019
Year
Fiscal
2013
2018
2016
2015
2014
2010
2011
2012
2017
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
DECEMBER 31, 2019
(120)
Net General Percentage
Obligation Bonded Applicable City Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County 983,232,996$ 7.09% 69,711,219$
Hennepin Suburban Park District 39,123,902 10.00% 3,912,390
Hennepin Regional Rail Authority 91,599,372 7.09% 6,494,395
School Districts:
ISD No. 273 (Edina) 167,312,880 98.62% 165,003,962
ISD No. 270 (Hopkins) 164,359,000 7.85% 12,902,182
ISD No. 271 (Bloomington) 84,955,424 0.02% 16,991
ISD No. 272 (Eden Prairie) 92,448,017 0.97% 896,746
ISD No. 280 (Richfield) 143,931,694 28.44% 40,934,174
ISD No. 283 (St. Louis Park) 137,122,694 0.01% 13,712
Metro Council 142,583,705 3.60% 5,133,013
Total Overlapping Debt 2,046,669,684 305,018,784
City of Edina 65,028,601 100.00% 65,028,601
Total Overlapping and Direct Debt 2,111,698,285$ 370,047,385$
Ratio of Debt Per Capita (52,535 Population) 7,044$
Ratio of Debt to Estimated Market Valuation of $12,370,204,900 2.99%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(121)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Debt Limit 298,494$ 282,958$ 270,767$ 263,958$ 267,351$ 291,050$ 308,890$ 323,556$ 346,426$ 368,150$
Total Net Debt
Applicable
to Limit 45,170 42,860 39,545 37,030 51,760 48,000 48,325 50,115 37,595 37,265
Legal Debt
Margin 253,324$ 240,098$ 231,222$ 226,928$ 215,591$ 243,050$ 260,565$ 273,441$ 308,831$ 330,885$
Total Net Debt
Applicable to
the Limit as a
Percentage of
Debt Limit 15.13% 15.15% 14.60% 14.03% 19.36% 16.49% 15.64% 15.49% 10.85% 10.12%
Market Value (After Fiscal Disparities) 12,271,672,648$
Debt Limit (3% of Market Value) 368,150,179
Debt Applicable to Limit:
General Obligation Bonds 19,905,000
Public Project Revenue Bonds 17,360,000
Total Debt Applicable to Limit 37,265,000
Legal Debt Margin 330,885,179$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2018
CITY OF EDINA, MINNESOTA
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(122)
Less: Operating Net Available
Revenue Expenses Revenue Principal Interest Total Coverage
Public Project Revenue Bonds (Annual Appropriation Lease Revenue)
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
2019 2,510,900 - 2,510,900 1,080,000 574,566 1,654,566 1.52
Tax Increment Bonds
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 - - - -
2019 5,447,108 5,447,108 - - - -
Permanent Improvement Revolving Bonds (Special Assessment)
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
2019 4,097,625 - 4,097,625 2,630,000 745,697 3,375,697 1.21
Utility Bond
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
2019 21,846,239 18,457,754 3,388,485 5,685,000 999,754 6,684,754 0.51
Recreational Facility Bonds
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)
2019 6,908,708 7,516,553 (607,845) 849,000 430,733 1,279,733 (0.47)
Debt Service RequirementsFiscal
Year
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(123)
Estimated
Personal Per Capita High School
Income Personal Graduation Unemployment
Population (In thousands) Income Rate Rate
47,941 2,622,564$ 54,704$ 91.6% 5.56%
48,262 2,717,923 56,316 92.2% 5.25%
48,829 3,171,346 64,948 97.4% 4.56%
49,216 2,955,913 60,060 97.7% 3.98%
50,261 3,117,991 62,036 97.8% 3.10%
50,766 3,231,154 63,648 97.9% 2.82%
51,804 3,264,895 63,024 97.7% 3.08%
52,497 3,567,906 67,964 97.9% 2.83%
52,535 3,480,339 66,248 98.0% 2.26%
53,268 3,711,714 69,680 98.2% 2.63%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2019 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.
2019
2018
2015
2016
Fiscal
Year
2014
2013
2012
2011
2010
2017
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
(124)
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
Fairview Southdale Hospital 1,624 1 6.34% 1,000 1 4.67%
Edina Public Schools ISD #273 1,341 2 5.23% 600 2 2.80%
City of Edina 1,100 3 4.29% 280 4 1.31%
BI Worldwide 500 4 1.95% 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 1.80% 250 10 DNA
Dow Water & Process Solutions 375 8 1.46% DNA DNA DNA
Target 375 9 1.46% 250 8 1.17%
Spartan Nash 350 10 1.37% DNA DNA DNA
Promenade Salon Concepts DNA DNA DNA 500 3 2.34%
Phoenix Direct DNA DNA DNA 250 5 1.17%
Design Studio of Gabberts DNA DNA DNA 250 6 1.17%
Westin DNA DNA DNA 250 7 1.17%
JC Penny Co. DNA DNA DNA 250 9 1.17%
Totals 7,125 27.80% 3,880 17.26%
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
20102019
Employer
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(125)
2010 2011 2012 b 2013 b 2014 b 2015 2016 b 2017 b 2018 2019
Administration
General Fund 9.25 9.25 6.85 5.85 4.85 4.85 5.00 5.00 5.00 5.00
HRA Fund - - - - 1.00 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 1.00
Communications and Technology Services
General Fund 3.00 3.50 4.65 5.15 6.15 6.15 6.00 6.00 6.00 6.00
Central Services 3.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00
Community Development
General Fund 10.85 10.85 10.85 10.85 12.00 12.00 12.00 12.00 12.00 12.00
Engineering
General Fund 8.50 8.50 10.50 12.00 10.00 11.00 11.00 11.00 12.00 12.00
PACS Fund - - - - 1.00 1.00 1.00 1.00 1.00 1.00
Utilities Fund - - - - 1.00 1.00 1.00 1.00 1.00 1.00
Finance
General Fund 5.50 5.25 5.25 5.25 6.00 6.00 5.00 5.00 6.00 6.00
Utilities Fund 2.75 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Liquor Fund 0.75 0.75 0.75 0.75 - - - - - -
Fire Protection
General Fund 40.50 39.50 39.75 42.75 42.85 43.85 45.90 45.90 45.80 49.80
Utilities Fund 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 5.00
Parks and Recreation
General Fund 23.20 23.20 23.20 24.40 23.65 23.65 25.05 25.05 25.30 25.30
Aquatic Center 0.55 0.55 0.55 0.55 0.55 0.55 0.60 0.60 0.70 0.70
Golf Course 13.00 11.00 12.00 12.00 12.00 12.00 8.05 8.05 9.00 9.00
Arena 5.00 5.00 5.00 5.00 5.00 5.00 4.85 4.85 6.25 6.25
Sports Dome - - - - - - 0.15 0.15 1.00 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 5.80 5.80 5.80 5.80 5.80 5.65 5.65
Centennial Lakes 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.05 5.05
Police Protection
General Fund 73.65 71.15 71.65 70.65 72.50 70.50 72.55 72.55 76.55 76.55
Utilities Fund 0.50 0.50 0.50 0.50 0.50 0.50 0.45 0.45 0.45 0.45
Public Works
General Fund 31.00 30.80 31.80 30.00 26.70 26.70 25.40 25.40 23.30 23.30
Construction Fund 1.00 1.00 1.00 1.00 1.00 1.00 1.10 1.10 1.10 1.10
Utilities Fund 15.25 14.45 13.95 13.75 15.20 15.20 16.85 16.85 18.65 18.65
Central Services 8.50 8.50 8.50 8.50 11.00 11.00 10.25 10.25 10.20 10.20
Other 1.00 - - - - - - - - -
Total 280.00 274.00 278.00 281.00 285.00 285.00 287.00 287.00 297.00 301.00
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.
Function
Budgeted Full-Time Employees for Fiscal Year a
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(126)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government
Total City Employees 869 892 989 1,040 1,093 1,077 1,155 1,067 1,136 1,174
Votes Cast a 25,463 7,957 31,841 3,480 24,049 9,370 31,986 11,440 30,774 10,990
Public Works
Asphalt Placed (Tons) 7,643 8,500 9,000 9,273 8,383 8,888 9,298 11,176 14,419 9,847
Concrete (cu. yds.) 503 558 667 560 396 670 897 708 868 963
Public Safety
Crimes Reported 1,890 1,590 1,628 1,594 1,571 2,015 2,143 2,431 N/A N/A
Fire Calls 910 960 858 893 926 1,251 1,276 1,220 1,321 1,600
Medical Calls 3,599 3,652 3,946 3,803 3,982 3,818 4,063 4,508 4,572 4,727
Central Services
Vehicle Fixes 2,431 2,331 2,546 3,493 3,277 2,923 2,721 2,478 2,336 1,910
Utilities
Daily Consumption b 6,790 6,909 7,613 6,652 6,489 6,308 6,047 5,950 6,101 5,394
Aquatic Center
Attendance 86,654 77,696 139,909 91,340 92,200 128,523 108,609 89,318 88,342 83,499
Golf Course
Total Rounds Played c 101,314 95,771 96,496 79,529 85,231 66,483 61,256 23,241 20,679 60,561
Source: Various City departments
N 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
Function
Fiscal Year
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(127)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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 and Recreation
City Parks 40 40 40 40 40 40 40 40 40 40
Acreage of Parks 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553
Park Buildings 27 27 27 27 27 27 27 27 27 27
Utilities
Wells 19 18 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 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979
Arena
Ice Sheets 3 3 3 3 3 4 4 4 4 4
Source: Various City departments
Function
Fiscal Year
CITY OF EDINA
4801 West 50th Street
Edina, Minnesota 55424
EdinaMN.gov
952-826-0366