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HomeMy WebLinkAbout2020 Comprehensive Annual Financial Report CITY OF EDINA, MINNESOTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED DECEMBER 31, 2020 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, 2020 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 24  Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 25  Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 26  Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 27  Statement of Net Position – Proprietary Funds 28  Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds 29  Statement of Cash Flows – Proprietary Funds 30  Statement of Fiduciary Net Position – Custodial Funds 32  Notes to Financial Statements 33  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, 2020 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 88  Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 89  Special Revenue Fund – Community Development Block Grant  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 90  Special Revenue Fund – Police  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 91  Special Revenue Fund – Braemar Memorial  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 92  Special Revenue Fund – Pedestrian and Cyclist Safety  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 93  Special Revenue Fund – Arts and Culture  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 94  Special Revenue Fund – Conservation and Sustainability  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 95  Major Governmental Fund – Debt Service  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 96  CITY OF EDINA, MINNESOTA TABLE OF CONTENTS (CONTINUED) YEAR ENDED DECEMBER 31, 2020 Major Governmental Fund – Construction Capital Projects  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 97  Combining Statement of Net Position – Nonmajor Proprietary Funds 98  Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Nonmajor Proprietary Funds 99  Combining Statement of Cash Flows – Nonmajor Proprietary Funds 100  Combining Balance Sheet and Statement of Changes in Assets and Liabilities – Custodial Funds 101  Supplementary Financial Information 102  Tax Capacity, Tax Levies, and Tax Capacity Rates 102  Combining Schedule of Bonded Indebtedness 103  Schedule of Balance Sheet Accounts – Tax Increment Financing Districts 105  Schedule of Revenues, Expenditures, and Changes in Fund Balances – Tax Increment Financing Districts 106  STATISTICAL SECTION (UNAUDITED)  Financial Trends  Net Position by Component 107  Changes in Net Position 109  Fund Balances of Governmental Funds 111  Changes in Fund Balances of Governmental Funds 113  Revenue Capacity 115  Assessed Value, Actual Value, and Tax Capacity of Taxable Property 115  Direct and Overlapping Tax Capacity Rates 116  Principal Property Taxpayers 117  Property Tax Levies and Collections 118  Debt Capacity 119  Ratios of Outstanding Debt by Type 119  Ratios of General Bonded Debt Outstanding 120  Direct and Overlapping Governmental Activities Debt 121  Legal Debt Margin Information 122  CITY OF EDINA, MINNESOTA TABLE OF CONTENTS (CONTINUED) YEAR ENDED DECEMBER 31, 2020 Pledged Revenue Coverage 123  Demographic and Economic Information 124  Demographic and Economic Statistics 124  Principal Employers 125  Operating Information  Full-Time Equivalent City Government Employees by Function 126  Operating Indicators by Function 127  Capital Asset Statistics by Function 128  (1) June 2, 2021 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, 2020. 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, 2020. 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 53,268. 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, fire and emergency medical services; 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 2020. The Comprehensive Plan guides development and redevelopment and addresses changes likely to occur due to various social and market forces. 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, addressing race and equity disparities, 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 $20,476,767 unassigned fund balance in the general fund. This amount is $4,503,106 above the goal range identified in the policy. Major Initiatives The City is continually working to update our aging infrastructure. Our annually adopted six-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, 2019. This was the tenth 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, 2020 (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, 2022 Ron Anderson December 31, 2022 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, 2020, 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, 2020, 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 2, 2021 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 2, 2021 (This page left blank intentionally.) CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (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, 2020. 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 $309,081,664 (net position). Of this amount, $49,561,819 (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 $19,873,255 from current year operations. Of that total, $18,241,196 is the increase in Governmental Activities net position and $1,632,059 is the increase in Business-Type Activities net position.  At the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $83,416,681, an increase of $15,902,746 from the prior year. The increase can be attributed to increases in the Debt Service, General, and Housing and Redevelopment Authority (HRA) funds. General obligation bonds, series 2020A and 2020B, were issued in 2020 in the amount of $2,025,176. 2020B was issued to refund general obligations series 2012A, with the refunding not occurring until 2021. A budget stabilization fund was established in the General Fund in the amount of $4,327,723, increasing assigned fund balance. The HRA Fund balance increased $7,961,616 as a result of tax increment collections, affordable housing fees collected, and less spent on capital than anticipated.  At the end of the current fiscal year, unassigned fund balance for the general fund was $20,476,747, or 44% of total general fund expenditures.  The City’s total bonded debt decreased by $3,086,000 during the current fiscal year, from $110,519,000. The City issued debt during the year consisting of $5,220,000 general obligation bonds, series 2020A, to finance the 2020 street and utility improvement projects as well as $3,015,000 general obligation refunding bonds, series 2020B, to refund the City’s 2012A general obligation bonds. 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, 2020 (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 water, sewer, stormwater, recycling, 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, 2020 (12) Proprietary funds. The City maintains five major enterprise funds and four internal service funds. 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, 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 utilizes four internal service funds to account for insurance and risk management activities, equipment operations, IT services, and facilities management. These services have been allocated proportionately to governmental and business-type 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, as well as internal service 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 $309,081,664 at the close of the most recent fiscal year. CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (13) The largest portion of the City’s net position ($198,188,122 or 64%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Edina’s Net Position 2020 2019 2020 2019 2020 2019 Assets: Current and Other Assets 117,350,841$ 102,772,182$ 46,835,488$ 41,566,836$ 164,186,329$ 144,339,018$ Capital Assets 175,520,050 177,046,643 129,507,070 132,455,693 305,027,120 309,502,336 Total Assets 292,870,891$ 279,818,825$ 176,342,558$ 174,022,529$ 469,213,449$ 453,841,354$ Deferred Outflows of Resources: OPEB Plan Deferments $ 366,225 $ 198,552 $ 32,475 $ 14,361 $ 398,700 $ 212,913 Pension Plan Deferments 7,629,878 10,433,540 458,037 403,276 8,087,915 10,836,816 Total Deferred Outflows of Resources $ 7,996,103 $ 10,632,092 $ 490,512 $ 417,637 $ 8,486,615 $ 11,049,729 Liabilities: Long-Term Liabilities Outstanding 82,251,250$ 85,067,742$ 50,204,303$ 51,218,382$ 132,455,553$ 136,286,124$ Other Liabilities 14,969,188 14,266,374 10,722,053 8,488,312 25,691,241 22,754,686 Total Liabilities 97,220,438$ 99,334,116$ 60,926,356$ 59,706,694$ 158,146,794$ 159,040,810$ Deferred Inflows of Resources: OPEB Plan Deferments 1,681,591$ 148,823$ 176,792$ 11,202$ 1,858,383$ 160,025$ Pension Plan Deferments 8,373,450 15,617,659 239,773 864,180 8,613,223 16,481,839 Total Deferred Inflows of Resources 10,055,041$ 15,766,482$ 416,565$ 875,382$ 10,471,606$ 16,641,864$ Net Position: Net Investment in Capital Assets 117,052,475$ 110,670,335$ 81,135,647$ 80,452,583$ 198,188,122$ 191,122,918$ Restricted 60,063,244 51,494,207 1,268,479 1,360,336 61,331,723 52,854,543 Unrestricted 16,475,796 13,185,777 33,086,023 32,045,171 49,561,819 45,230,948 Total Net Position 193,591,515$ 175,350,319$ 115,490,149$ 113,858,090$ 309,081,664$ 289,208,409$ Governmental Activities Business-Type Activities Total A portion of the City’s net position ($61,331,723) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($49,561,819) 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 $4,330,871 in unrestricted net position. This was mainly due to positive operating results in the Utility and General Funds. The decreases in deferred outflows of resources and deferred inflows of resources relate to the changes in the City’s share of state pension plan amounts while the decrease in long-term liabilities is primarily attributable to regular scheduled payments on the City’s outstanding bonds, partially offset by newly issued debt. CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (14) As shown below, the City’s net position increased by $19,873,255 during the current fiscal year. Factors contributing to this change are discussed in the next two sections. City of Edina’s Changes in Net Position 2020 2019 2020 2019 2020 2019 Revenues: Program Revenues: Charges for Services 15,333,404$ 12,217,896$ 45,003,860$ 45,119,284$ 60,337,264$ 57,337,180$ Operating Grants and Contributions 7,626,236 4,271,243 47,780 44,953 7,674,016 4,316,196 Capital Grants and Contributions 7,318,687 6,625,040 396,103 692,281 7,714,790 7,317,321 General Revenues: Property Taxes 39,545,279 37,133,269 - - 39,545,279 37,133,269 Other Taxes 9,532,524 8,352,953 - - 9,532,524 8,352,953 Gain on Disposal of Assets - 408,659 7,359 - 7,359 408,659 Unrestricted Investment Earnings 1,835,870 2,037,306 945,580 1,064,942 2,781,450 3,102,248 Total Revenues 81,192,000 71,046,366 46,400,682 46,921,460 127,592,682 117,967,826 Expenses: General Government 11,698,533 11,252,538 - - 11,698,533 11,252,538 Public Safety 27,058,719 22,485,722 - - 27,058,719 22,485,722 Public Works 16,117,060 15,990,021 - - 16,117,060 15,990,021 Parks 6,798,866 7,554,919 - - 6,798,866 7,554,919 Interest on Long-Term Debt 1,561,462 1,999,318 - - 1,561,462 1,999,318 Water - - 9,592,913 19,303,212 9,592,913 19,303,212 Sewer - - 7,641,660 - 7,641,660 - Stormwater - - 3,424,049 - 3,424,049 - Recycling - - 1,392,003 - 1,392,003 - Liquor - - 11,500,971 11,970,986 11,500,971 11,970,986 Aquatic Center - - 386,026 979,376 386,026 979,376 Golf Course - - 4,257,484 4,009,097 4,257,484 4,009,097 Arena - - 2,876,897 2,982,674 2,876,897 2,982,674 Community Activity Centers - - 3,412,784 4,286,773 3,412,784 4,286,773 Total Expenses 63,234,640 59,282,518 44,484,787 43,532,118 107,719,427 102,814,636 Increase in Net Position Before Transfers 17,957,360 11,763,848 1,915,895 3,389,342 19,873,255 15,153,190 Transfers 283,836 158,352 (283,836) (158,352) - - Change in Net Position 18,241,196 11,922,200 1,632,059 3,230,990 19,873,255 15,153,190 Net Position - January 1 175,350,319 163,428,119 113,858,090 110,627,100 289,208,409 274,055,219 Net Position - December 31 193,591,515$ 175,350,319$ 115,490,149$ 113,858,090$ 309,081,664$ 289,208,409$ Governmental Activities Business-Type Activities Total CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (15) GOVERNMENTAL ACTIVITIES Governmental activities increased the City’s net position by $18,241,130, accounting for 92% of the total growth in net position. Key elements of the increase are as follows.  Charges for services increased by $3,085,508, or 25% in 2020. This is due primarily to an increase in building and other permit fees.  Property taxes increased by $2,412,010 as the result of an increased general operating levy that provides funding to continue existing service levels.  Other taxes increased by $1,179,571 due to an increase in tax increment collections from the Southdale 2, Pentagon Park, and Grandview 2 tax increment financing districts.  Investment earnings decreased by $217,391, or 11% in 2020 due to lower interest rates.  Gain on disposal of assets decreased $408,659 due to the sale of retail space in the North parking ramp in the 50th and France 2 TIF district, in the prior year. Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: Charges for services 19% Operating grants and contributions 9% Capital grants and contributions 9% Property taxes 49% Other taxes 12% Other 2% Revenues by Source - Governmental Activities CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (16) - 5 10 15 20 25 30 General government Public safety Public works Parks Interest on long-term debt Millions Expenses and Program Revenues - Governmental Activities expenses program revenue CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (17) BUSINESS-TYPE ACTIVITIES Business-type activities increased net position by $1,632,125, accounting for 8% 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 $4,758,590 for 2020. 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 $654,577 for 2020. 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 other enterprise funds had a loss before contributions and transfers of $3,626,794 in total. These funds were negatively impacted by the coronavirus pandemic and had to close for a portion or all of 2020 as a result. Charges for services 97% Capital grants and contributions 1% Unrestricted investment earnings 2% Revenues by Source - Business-type Activities - 2 4 6 8 10 12 14 Water Sewer Storm Recycling Liquor Aquatic Golf Arena Community Millions Expenses and Program Revenues - Business-type Activities expenses program revenue CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (18) FINANCIAL ANALYSIS OF THE CITY’S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds. The focus of the City’s governmental funds is to provide information on near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $83,416,681, an increase of $15,902,746 in comparison with the prior year. Approximately 24% of this total amount ($20,426,137) constitutes unassigned fund balance. The remainder of the fund balance is 1) restricted by external creditors, grantors, laws, or regulations ($36,647,519), or 2) assigned by internal constraints ($26,314,622), 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 $20,476,747. As a measure of the general fund’s liquidity, unassigned fund balance represents 4% of total general fund expenditures. The fund balance of the City’s general fund increased by $8,651,452 during the current fiscal year. Key factors related to this increase include:  Total general fund revenues were $6,230,614 over budget, including higher than expected building permit activity, intergovernmental revenue, and investment income. Intergovernmental revenue was $4,255,412 over budget due to various grants received related to COVID-19, including $3,858,123 of CARES funds that were recorded in this fund.  Total general fund expenditures were $1,202,032 over budget due to unbudgeted spending related to COVID-19.  The construction fund transferred $2,966,294 to the general fund to help fund the budget stabilization fund that was created in response to the pandemic. These funds came from prior year surpluses that had been transferred into the construction fund to be spent on capital projects. The Housing and Redevelopment Authority fund balance increased by $7,961,616 in the current fiscal year due to higher than anticipated investment income, tax increment collections, fees collected for affordable housing, and less spent on capital outlay than anticipated. The debt service fund has a total fund balance of $9,727,306, 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 $1,385,310. Fund balance increased as the result of a $2,870,125 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 decreased by $2,292,504 in 2020 due to transfers out of $6,214,942 to the general and debt service funds as detailed above. Offsetting the transfers out were higher than anticipated intergovernmental revenue and investment income, and lower than expected capital spending. CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (19) Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the utility fund at the end of the year amounted to $35,039,756. The total growth in net position from current year operations was $4,334,587. Operating revenues in the utilities fund increased by 18% while expenses increased by 16.0% in 2020. The revenue increase was due to an increase in the water, sewer, and storm rates along with $1,550,398 more collected for connection and other fees in 2020. 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, and increased internal service charges. The City invested $4,523,926 in utility fund capital assets during 2020. Unrestricted net position of the liquor fund at the end of the year amounted to $1,860,106. Total net position increased by $57,803 from current year operations. The liquor fund continues to transfer profits back into other City funds, including the construction, arena, and art center funds. The liquor fund made transfers totaling $600,000 to other funds during 2020. Unrestricted net position of the aquatic center fund at the end of the year amounted to $767,812. The Aquatic Center was closed for all of 2020 due to COVID-19, resulting in no revenue. Minimal expenses were incurred as the result of the closure, with 85% of the expenses coming from depreciation and internal service charges. Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of ($1,048,421) a decrease of $138,294 from the prior year. The loss before contributions and transfers was reduced by $309,069 in 2020 compared to 2019, including the course and dome being closed for a portion of the year due to COVID-19, a sign of improving profitability. Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($190,919), a decrease of $499,015 from the prior year. Revenues decreased by $879,977 while expenses decreased by $65,292 as a result of closures and limit capacity guidelines due to COVID-19. GENERAL FUND BUDGETARY HIGHLIGHTS During the year, there was a $3,564,203 decrease in appropriations between the original and final amended budget. The decrease is the result of the budget being amended and transfers from the construction fund totaling $2,966,294 to fund the budget stabilization fund. During the year, revenues were $6,230,614 more than budget, as the continued commercial and residential redevelopment of the City increased our licenses and permits, which exceeded budget by $1,405,202. Intergovernmental revenue exceeded budget by $4,255,412 as a result of receiving various COVID-19 related grants, including $3,858,123 in CARES funding recorded in this fund. Investment income also exceeded budget by $447,073. During the year, expenditures were over budget by $1,202,032. Public health was over budget by $1,536,213 due to COVID-19 related expenses. Parks and recreation offset this by coming in under budget by $310,502, the result of costs savings from providing fewer programs due to COVID-19. CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (20) CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets. The City’s investment in capital assets for its governmental and business-type activities as of December 31, 2020, amounted to $305,027,120 (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 decrease in the City’s investment in capital assets for the current fiscal year was 1.4% (a 0.5% decrease for governmental activities and a 0.9% decrease for business-type activities). Major capital asset events during the current fiscal year included the following:  The City spent $492,830 on the Edinborough Park Plaza, with construction slated to be complete in 2021.  A variety of street construction, sidewalk and park projects; construction in progress as of the close of the fiscal year reached $6,691,865.  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 $ 5,693,838 in the utility fund.  The City completed the Centennial Lakes bridge replacement; total construction cost was $1,121,563.  The City purchased four ambulances at a cost of $863,198 and the aerial fire truck was completed at a total cost of $1,179,266. City of Edina’s Capital Assets (Net of Depreciation) 2020 2019 2020 2019 2020 2019 Land and Land Improvements 30,114,062$ 30,018,596$ 10,552,207$ 11,078,506$ 40,666,269$ 41,097,102$ Easements 253,000 253,000 35,600 35,600 288,600 288,600 Buildings and Structures 35,375,635 36,846,994 17,449,027 19,028,360 52,824,662 55,875,354 Machinery and Equipment 10,429,312 8,281,209 5,676,069 5,832,585 16,105,381 14,113,794 Infrastructure 83,180,690 84,022,848 89,475,819 88,071,369 172,656,509 172,094,217 Parks 9,475,486 9,295,239 - - 9,475,486 9,295,239 Construction in Progress 6,691,865 8,328,757 6,318,348 8,409,273 13,010,213 16,738,030 Total 175,520,050$ 177,046,643$ 129,507,070$ 132,455,693$ 305,027,120$ 309,502,336$ 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 $107,433,000, a decrease of $3,086,000 from 2019. This decrease resulted from payment of regularly scheduled principal payments, partially offset by $8,235,000 of new debt issued. $17,725,000 is for general obligation improvement debt that is supported by property tax levies and special assessments. This amount decreased from 2019 due to regularly scheduled principal payments. $24,526,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s street reconstruction program. This amount decreased from 2019 due to regularly scheduled principal payments partially offset by newly issued debt of $1,991,000. CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (21) Also outstanding is $16,245,000 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 2019 due to regularly scheduled principal payments. There is a total of $48,937,000 in revenue bonds for improvements to the enterprise funds. This amount increased $788,000 during the year due to $6,244,000 in issued debt offset by $5,456,000 in regularly scheduled principal payments. City of Edina’s Outstanding Debt 2020 2019 2020 2019 2020 2019 General Obligation Bonds 17,725,000$ 19,905,000$ -$ -$ 17,725,000$ 19,905,000$ Public Improvement Bonds 24,526,000 25,105,000 - - 24,526,000 25,105,000 Public Project Revenue Bonds 16,245,000 17,360,000 - - 16,245,000 17,360,000 Revenue Bonds - - 48,937,000 48,149,000 48,937,000 48,149,000 Total 58,496,000$ 62,370,000$ 48,937,000$ 48,149,000$ 107,433,000$ 110,519,000$ 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 $383,573,925. Only $33,970,000 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 2020 was 3.0%, 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-nine percent pursuing some sort of post-secondary education. CITY OF EDINA, MINNESOTA MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2020 (22) Property values in Edina decreased for several years from 2009-2012 and have risen each year since. Estimated market value of real estate increased 2.9% for taxes payable in 2020. 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 4.3% for taxes payable in 2020 and remained positive for the eighth consecutive year. All these factors above were considered in preparing the City’s budget for the 2021 fiscal year. The City’s adopted 2021 budget includes a property tax levy of $42,018,271 for all funds, an increase of 5.95% from the 2020 levy, with the increase being attributed to increased levies for the City’s equipment replacement expenditures, capital improvement expenditures, HRA operating expenditures, and general operating levy. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual Financial Report can also be found on the internet at www.edinamn.gov. CITY OF EDINA, MINNESOTA STATEMENT OF NET POSITION DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (22) Governmental Business-Type Activities Activities Total ASSETS Current Assets: Cash and Investments 82,045,061$ 33,292,254$ 115,337,315$ Restricted Cash and Investments 560,758 4,657,994 5,218,752 Accrued Interest 271,245 134,806 406,051 Accounts Receivable, Net 1,675,738 6,185,655 7,861,393 Special Assessments Receivable 22,824,807 307,000 23,131,807 Internal balances (129,522) 129,522 - Due from Other Governments 2,351,608 21,374 2,372,982 Prepaid Items 830,793 518,119 1,348,912 Inventory - 1,588,764 1,588,764 Total Current Assets 110,430,488 46,835,488 157,265,976 Noncurrent Assets: Investment in Joint Powers Agreement 1,770,353 - 1,770,353 Loans Receivable 5,150,000 - 5,150,000 Nondepreciable Capital Assets 31,243,391 6,639,289 37,882,680 Depreciable Capital Assets (Net)144,276,659 122,867,781 267,144,440 Total Noncurrent Assets 182,440,403 129,507,070 311,947,473 Total Assets 292,870,891 176,342,558 469,213,449 DEFERRED OUTFLOWS OF RESOURCES OPEB Plan Deferments 366,225 32,475 398,700 Defined Benefit Pension Plans 7,629,878 458,037 8,087,915 Total Deferred Outflows of Resources 7,996,103 490,512 8,486,615 LIABILITIES Current Liabilities: Accounts Payable 1,935,470 593,253 2,528,723 Salaries Payable 1,490,478 323,479 1,813,957 Accrued Interest Payable 766,415 688,052 1,454,467 Contracts Payable 453,651 467,195 920,846 Due to Other Governments 22,303 181,097 203,400 Deposits Payable 1,184,944 - 1,184,944 Unearned Revenue 76,858 332,695 409,553 Compensated Absences Payable 1,843,069 321,613 2,164,682 Bonds Payable 7,196,000 7,829,000 15,025,000 Total Current Liabilities 14,969,188 10,736,384 25,705,572 Noncurrent Liabilities: Total OPEB Liability 2,020,150 168,613 2,188,763 Net Pension Liability 23,072,814 4,805,717 27,878,531 Compensated Absences Payable 2,764,604 482,420 3,247,024 Bonds and Loans Payable, Net 54,393,682 44,733,222 99,126,904 Total Noncurrent Liabilities 82,251,250 50,189,972 132,441,222 Total Liabilities 97,220,438 60,926,356 158,146,794 DEFERRED INFLOWS OF RESOURCES OPEB Plan Deferments 1,681,591 176,792 1,858,383 Defined Benefit Pension Plans 8,373,450 239,773 8,613,223 Total Deferred Inflows of Resources 10,055,041 416,565 10,471,606 NET POSITION Net Investment in Capital Assets 117,052,475 81,135,647 198,188,122 Restricted for Tax Increments 19,136,827 - 19,136,827 Restricted for Affordable Housing 5,048,387 - 5,048,387 Restricted for Debt Service 11,060,298 1,268,479 12,328,777 Restricted for Highway Construction 1,305,225 - 1,305,225 Restricted for Capital Projects 20,777,354 - 20,777,354 Restricted for Parkland Dedication 58,086 - 58,086 Restricted for Police 687,939 - 687,939 Restricted for Braemar Golf Donations 126,692 - 126,692 Restricted for Arts and Culture Donations 69,049 - 69,049 Restricted for Conservation and Sustainability Initiatives 1,793,387 - 1,793,387 Unrestricted 16,475,796 33,086,023 49,561,819 Total Net Position 193,591,515$ 115,490,149$ 309,081,664$ Primary Government CITY OF EDINA, MINNESOTA STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (23) Operating CapitalCharges for Grants and Grants and Governmental Business-TypeExpenses Services Contributions Contributions Activities Activities TotalFunctions/ProgramsPrimary Government:Governmental Activities:General Government 11,698,533$ 4,172,729$ 4,064,005$ -$ (3,461,799)$ -$ (3,461,799)$ Public Safety 27,058,719 10,152,772 3,422,452 - (13,483,495) - (13,483,495) Public Works 16,117,060 665,031 8,096 7,318,687 (8,125,246) - (8,125,246) Parks 6,798,866 342,872 131,683 - (6,324,311) - (6,324,311) Interest on Long-Term Debt 1,561,462 - - - (1,561,462) - (1,561,462) Total Government Activities 63,234,640 15,333,404 7,626,236 7,318,687 (32,956,313) - (32,956,313) Business-Type Activities:Water 9,592,913 9,236,665 - - - (356,248) (356,248) Sewer 7,641,660 10,622,411 - - - 2,980,751 2,980,751 Stormwater 3,424,049 4,773,432 - - - 1,349,383 1,349,383 Recycling 1,392,003 1,148,338 - 396,103 - 152,438 152,438 Liquor 11,500,971 12,117,414 - - - 616,443 616,443 Aquatic Center 386,026 - - - - (386,026) (386,026) Golf Course 4,257,484 3,968,529 3,108 - - (285,847) (285,847) Arena 2,876,897 1,638,011 - - - (1,238,886) (1,238,886) Community Activity Centers 3,412,784 1,499,060 44,672 - - (1,869,052) (1,869,052) Total Business-Type Activities 44,484,787 45,003,860 47,780 396,103 - 962,956 962,956 Total Primary Government 107,719,427$ 60,337,264$ 7,674,016$ 7,714,790$ (32,956,313) 962,956 (31,993,357) General Revenues:Property Taxes 39,545,279 - 39,545,279 Tax Increment Collections 6,452,819 - 6,452,819 Franchise Taxes 3,071,392 - 3,071,392 Lodging Taxes 8,313 - 8,313 Unrestricted Investment Earnings 1,835,870 945,580 2,781,450 Gain on Disposal of Capital Assets - 7,359 7,359 Transfers - Internal Activities 283,836 (283,836) - Total General Revenues and Transfers 51,197,509 669,103 51,866,612 Change in Net Position 18,241,196 1,632,059 19,873,255 Net Position - Beginning 175,350,319 113,858,090 289,208,409 Net Position - Ending 193,591,515$ 115,490,149$ 309,081,664$ Net (Expense) Revenue andChanges in Net PositionProgram Revenues CITY OF EDINA, MINNESOTA BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (24) Housing and Nonmajor Total Redevelopment Debt Governmental Governmental General Authority Service Construction Funds Funds ASSETS Cash and Investments 29,148,601$ 18,795,903$ 9,514,693$ 20,020,099$ 2,452,145$ 79,931,441$ Restricted Cash and Investments - - 161,922 398,836 - 560,758 Accrued Interest 87,395 71,156 - 105,151 7,543 271,245 Accounts Receivable 478,386 203,522 - 145,230 544,246 1,371,384 Taxes Receivable 233,262 - 29,183 22,771 154 285,370 Special Assessments Receivable - - 2,070,224 20,754,583 - 22,824,807 Due from Other Funds - - - 252,031 - 252,031 Due from Other Governments 760,944 25,405 51,141 1,488,454 9,338 2,335,282 Prepaid items 28,403 - - - - 28,403 Loans Receivable - 5,150,000 - - - 5,150,000 Total Assets 30,736,991$ 24,245,986$ 11,827,163$ 43,187,155$ 3,013,426$ 113,010,721$ LIABILITIES Accounts Payable 586,001$ 60,473$ 450$ 1,119,365$ 11,216$ 1,777,505$ Salaries Payable 1,385,318 6,191 - 14,826 6,335 1,412,670 Contracts Payable - 624 - 335,640 117,387 453,651 Due to Other Funds - - - - 252,031 252,031 Due to Other Governments 20,979 - - - - 20,979 Deposits Payable 1,204,460 (19,516) - - - 1,184,944 Unearned Revenue 63,858 13,000 - - - 76,858 Total Liabilities 3,260,616 60,772 450 1,469,831 386,969 5,178,638 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Taxes 233,262 - 29,183 - 154 262,599 Unavailable Revenue - Special Assessments - - 2,070,224 20,777,354 - 22,847,578 Unavailable Revenue - Other - - - 1,305,225 - 1,305,225 Total Deferred Inflows of Resources 233,262 - 2,099,407 22,082,579 154 24,415,402 FUND BALANCE Nonspendable 28,403 - - - - 28,403 Restricted 58,086 24,185,214 9,727,306 - 2,676,913 36,647,519 Assigned 6,679,877 - - 19,634,745 - 26,314,622 Unassigned 20,476,747 - - - (50,610) 20,426,137 Total Fund Balance 27,243,113 24,185,214 9,727,306 19,634,745 2,626,303 83,416,681 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 30,736,991$ 24,245,986$ 11,827,163$ 43,187,155$ 3,013,426$ 113,010,721$ CITY OF EDINA, MINNESOTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (25) Total Fund Balances - Governmental Funds 83,416,681$ 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 327,073,681 Accumulated Depreciation (151,553,631) Long-term liabilities are included in net position, 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 (58,496,000) Loans Payable (750,000) Premium on Bonds (2,343,682) Compensated Absences Payable (4,607,673) Total OPEB Liability (2,020,150) Net Pension Liability (23,072,814) Accrued interest payable on long-term debt is included in net position, but is excluded from fund balances until due and payable.(766,415) 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 366,225 Deferred Outflows - Pension 7,629,878 Deferred Inflows - OPEB (1,681,591) Deferred Inflows - Pension (8,373,450) Deferred Inflows - Property Taxes 262,599 Deferred Inflows - Special Assessments 22,847,578 Deferred Inflows - Other 1,305,225 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.2,584,701 Total Net Position - Governmental Activities 193,591,515$ CITY OF EDINA, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (26) Housing and Nonmajor Total Redevelopment Debt Governmental Governmental General Authority Service Construction Funds Funds REVENUES General Property Taxes 31,901,482$ 192,009$ 4,578,234$ 2,817,514$ 20,000$ 39,509,239$ Tax Increment Collections - 6,452,819 - - - 6,452,819 Franchise Taxes 811,004 - - 91,354 2,169,034 3,071,392 Lodging Tax 8,313 - - - - 8,313 Special Assessments - - 191,881 4,437,670 - 4,629,551 License and Permits 6,381,889 - - 72,860 - 6,454,749 Intergovernmental 5,976,630 199,000 - 5,022,639 20,470 11,218,739 Charges for Services 4,812,575 41,992 - 113,721 - 4,968,288 Fines and Forfeitures 485,472 - - - - 485,472 Investment Income 597,073 489,463 - 695,025 54,309 1,835,870 Rental of Property 479,148 - - - - 479,148 Other Revenues 132,657 2,513,409 - 244,752 178,451 3,069,269 Total Revenues 51,586,243 9,888,692 4,770,115 13,495,535 2,442,264 82,182,849 EXPENDITURES Current: General Government 7,626,995 572,945 - 357,042 20,470 8,577,452 Public Safety 25,411,355 - - 13,837 187,404 25,612,596 Public Works 8,053,512 - - 552,377 237,668 8,843,557 Parks 4,883,218 - - 2,665 3,318 4,889,201 Capital Outlay: General Government - 1,454,131 - 1,840,510 - 3,294,641 Public Safety 34,047 - - 2,425,565 12,644 2,472,256 Public Works - - - 4,892,957 1,783,888 6,676,845 Parks 41,000 - - 560,507 - 601,507 Debt Service: Bond Principal - - 5,865,000 - - 5,865,000 Interest and Fiscal Charges - - 2,007,730 - - 2,007,730 Total Expenditures 46,050,127 2,027,076 7,872,730 10,645,460 2,245,392 68,840,785 REVENUES OVER (UNDER) EXPENDITURES 5,536,116 7,861,616 (3,102,615) 2,850,075 196,872 13,342,064 OTHER FINANCING SOURCES (USES) Transfers In 3,115,261 - 2,870,125 275,000 - 6,260,386 Transfers Out - - - (5,976,550) - (5,976,550) Sale of Capital Assets 75 100,000 - 151,595 - 251,670 Bonds Issued - - 1,617,800 373,200 - 1,991,000 Premium on Bonds Issued - - - 34,176 - 34,176 Total Other Financing Sources (Uses) 3,115,336 100,000 4,487,925 (5,142,579) - 2,560,682 NET INCREASE (DECREASE) IN FUND BALANCE 8,651,452 7,961,616 1,385,310 (2,292,504) 196,872 15,902,746 Fund balance - January 1 18,591,661 16,223,598 8,341,996 21,927,249 2,429,431 67,513,935 FUND BALANCE - DECEMBER 31 27,243,113$ 24,185,214$ 9,727,306$ 19,634,745$ 2,626,303$ 83,416,681$ 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, 2020 See accompanying Notes to Financial Statements. (27) Total Net Change in Fund Balances - Governmental Funds 15,902,746$ 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 9,131,890 Depreciation Expense (10,273,978) 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 (251,670) Gain (Loss) on the Sale of Capital Assets (132,835) Revenues in the statement of activities that do not provide current financial resources (property tax special assessment, and other unavailable receivables) are not reported as revenues in the funds.(1,090,727) 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.(2,025,176) Repayment of long-term debt does not affect the change in net position. However, it reduces fund balances.5,865,000 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 only included in the change in fund balances when due.97,173 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. 349,095 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 820,651 OPEB (75,649) 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 (621,628) 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.546,304 Change in Net Position - Governmental Activities 18,241,196$ CITY OF EDINA, MINNESOTA STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (28) Governmental Activities Nonmajor Total Internal Aquatic Golf Enterprise Enterprise ServiceUtilities Liquor Center Course Arena Funds Funds FundsASSETS Current Assets: Cash and Investments 25,907,405$ 2,162,234$ 2,039,186$ 123,334$ 322,549$ 2,737,546$ 33,292,254$ 2,113,620$ Restricted Cash and Investments 4,657,994 - - - - - 4,657,994 - Interest Receivable 95,306 8,775 9,440 3,870 1,483 15,932 134,806 - Accounts Receivable, Net 5,986,331 661 - 2,769 161,001 34,893 6,185,655 18,984 Special Assessments Receivable 307,000 - - - - - 307,000 - Due from Other Governments 21,374 - - - - - 21,374 16,326 Prepaid Expenses 493,781 23,451 - 887 - - 518,119 802,390 Inventory 16,286 1,465,954 - 103,077 - 3,447 1,588,764 - Total Current Assets 37,485,477 3,661,075 2,048,626 233,937 485,033 2,791,818 46,705,966 2,951,320 Noncurrent Assets: Net Capital Assets 99,548,148 1,665,194 1,695,456 11,265,423 7,408,604 7,924,245 129,507,070 - Total Assets 137,033,625 5,326,269 3,744,082 11,499,360 7,893,637 10,716,063 176,213,036 2,951,320 DEFERRED OUTFLOWS OF RESOURCES OPEB Deferred Outflows 7,770 8,439 - 5,438 4,384 6,444 32,475 - Pension Deferred Outflows 110,561 110,561 - 63,178 47,383 126,354 458,037 - Total Deferred Outflows of Resources 118,331 119,000 - 68,616 51,767 132,798 490,512 - LIABILITIES Current Liabilities: Accounts Payable 452,912 46,333 499 33,652 38,317 21,540 593,253 157,965 Salaries Payable 98,439 77,013 1,586 53,829 32,703 59,909 323,479 77,808 Accrued Interest Payable 525,297 - 10,250 119,733 32,772 - 688,052 - Contracts Payable 446,353 - - - - 20,842 467,195 - Due to Other Governments 8,241 166,295 - 4,095 2,357 109 181,097 1,324 Unearned Revenue - 104,314 - 193,190 4,546 30,645 332,695 - Compensated Absences Payable 71,278 92,462 - 70,593 22,249 65,031 321,613 - Bonds Payable - Current 6,920,000 - 80,000 565,000 264,000 - 7,829,000 - Total Current Liabilities 8,522,520 486,417 92,335 1,040,092 396,944 198,076 10,736,384 237,097 Noncurrent Liabilities:Total OPEB Liability 34,385 35,567 - 46,189 12,780 39,692 168,613 - Net Pension Liability 1,160,001 1,160,001 - 662,857 497,143 1,325,715 4,805,717 - Compensated Absences Payable 106,917 138,694 - 105,889 33,373 97,547 482,420 - Bonds Payable, Net of Unamortized Discounts and Premiums 32,697,568 - 602,084 8,298,544 3,135,026 - 44,733,222 - Total Noncurrent Liabilities 33,998,871 1,334,262 602,084 9,113,479 3,678,322 1,462,954 50,189,972 - Total Liabilities 42,521,391 1,820,679 694,419 10,153,571 4,075,266 1,661,030 60,926,356 237,097 DEFERRED INFLOWS OF RESOURCES OPEB Deferred Inflows 48,705 41,414 - 27,875 26,675 32,123 176,792 - Pension Deferred Inflows 57,877 57,876 - 33,072 24,804 66,144 239,773 - Total Deferred Inflows of Resources 106,582 99,290 - 60,947 51,479 98,267 416,565 - NET POSITION Net Investment in Capital Assets 64,142,221 1,665,194 1,013,372 2,401,879 4,009,578 7,903,403 81,135,647 - Restricted for Debt Service - - 1,268,479 - - - 1,268,479 - Unrestricted 30,381,762 1,860,106 767,812 (1,048,421) (190,919) 1,186,161 32,956,501 2,714,223 Total Net Position 94,523,983$ 3,525,300$ 3,049,663$ 1,353,458$ 3,818,659$ 9,089,564$ 115,360,627$ 2,714,223$ 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, 2020 See accompanying Notes to Financial Statements. (29) Governmental Activities Nonmajor Total Internal Aquatic Golf Enterprise Enterprise ServiceUtilities Liquor Center Course Arena Funds Funds FundsOPERATING REVENUESSales - Liquor -$ 11,984,973$ -$ 142$ -$ -$ 11,985,115$ -$ Sales - Retail - 132,441 - 181,344 1,085 9,143 324,013 - Sales - Utilities 23,545,073 - - - - - 23,545,073 - Sales - Concessions - - - 26 86,070 44,499 130,595 - Memberships- - - 128,506 - 39,056 167,562 - Admissions - - - 641,443 55,856 187,161 884,460 - Lodging Tax - - - - - 1,751 1,751 - Building Rental - - - 40,147 1,445,576 379,180 1,864,903 - Rental of Equipment - - - 284,148 3,567 64,469 352,184 - Greens Fees - - - 1,786,035 - 163,129 1,949,164 - Other Fees 2,186,814 - - 885,890 43,984 610,672 3,727,360 5,713,432 Total Operating Revenues 25,731,887 12,117,414 - 3,947,681 1,636,138 1,499,060 44,932,180 5,713,432 OPERATING EXPENSES Cost of Sales and Services - 8,744,414 3,635 143,578 29,546 25,167 8,946,340 - Personal Services 2,443,657 1,777,207 11,502 1,767,791 858,829 1,623,948 8,482,934 1,903,556 Contractual Services 10,935,136 553,445 35,205 648,902 963,406 568,993 13,705,087 2,118,652 Commodities 961,379 43,547 5,092 354,572 99,181 217,394 1,681,165 1,099,623 Internal Services 1,335,322 289,551 39,236 220,690 192,950 336,104 2,413,853 - Depreciation 5,725,846 113,853 280,518 893,542 665,072 660,615 8,339,446 - Total Operating Expenses 21,401,340 11,522,017 375,188 4,029,075 2,808,984 3,432,221 43,568,825 5,121,831 OPERATING INCOME (LOSS)4,330,547 595,397 (375,188) (81,394) (1,172,846) (1,933,161) 1,363,355 591,601 NONOPERATING REVENUES (EXPENSES) Intergovernmental 420,189 - - 3,108 - 16,754 440,051 99,878 Investment Income 689,931 59,180 61,480 27,988 8,858 98,143 945,580 - Donations - - - - - 26,714 26,714 - Interest and Fiscal Charges (1,156,575) - (24,850) (288,892) (79,744) - (1,550,061) - Amortization of Bond Premiums (Discounts)443,577 - 11,027 47,650 2,323 - 504,577 - Gain (Loss) on Sale of Capital Assets 6,048 - - - - 1,311 7,359 - Miscellaneous 24,873 - - 20,848 1,873 1,204 48,798 (15,653) Total Nonoperating Revenues (Expenses)428,043 59,180 47,657 (189,298) (66,690) 144,126 423,018 84,225 INCOME (LOSS) BEFORE TRANSFERS 4,758,590 654,577 (327,531) (270,692) (1,239,536) (1,789,035) 1,786,373 675,826 TRANSFERS Transfers In - 3,226 143,999 48,954 338,772 205,216 740,167 - Transfers Out (424,003) (600,000) - - - - (1,024,003) - Total Transfers (424,003) (596,774) 143,999 48,954 338,772 205,216 (283,836) - CHANGE IN NET POSITION 4,334,587 57,803 (183,532) (221,738) (900,764) (1,583,819) 1,502,537 675,826 Net Position - January 1 90,189,396 3,467,497 3,233,195 1,575,196 4,719,423 10,673,383 113,858,090 2,038,397 NET POSITION - DECEMBER 31 94,523,983$ 3,525,300$ 3,049,663$ 1,353,458$ 3,818,659$ 9,089,564$ 115,360,627$ 2,714,223$ Business-Type Activities - Enterprise Funds CITY OF EDINA, MINNESOTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (30) Governmental Activities Nonmajor Total Internal Aquatic Golf Enterprise Enterprise ServiceUtilities Liquor Center Course Arena Funds Funds FundsCASH FLOWS FROM OPERATING ACTIVITIESReceipts from Customers and Users 25,362,617$ 12,175,674$ 161$ 4,011,375$ 1,701,096$ 1,552,027$ 44,802,950$ -$ Receipts from City Funds - - - - - - - 5,710,379 Payment to Suppliers (13,177,161) (9,548,740) (83,707) (1,452,604) (1,359,145) (1,188,380) (26,809,737) (3,720,998) Payment to Employees (2,414,583) (1,725,892) (9,965) (1,740,998) (866,811) (1,650,780) (8,409,029) (1,825,748) Net Cash Provided (Used) by Operating Activities 9,770,873 901,042 (93,511) 817,773 (524,860) (1,287,133) 9,584,184 163,633 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESGrants and Contributions - - - 3,108 - 16,754 19,862 84,225 Transfer from Other Funds - 3,226 143,999 48,954 338,772 205,216 740,167 - Transfer to Other Funds (424,003) (600,000) - - - - (1,024,003) - Miscellaneous Received 24,873 - - 20,848 - 27,918 73,639 - Net Cash Provided (Used) by Noncapital Financing Activities (399,130) (596,774) 143,999 72,910 338,772 249,888 (190,335) 84,225 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES State Grant 407,060 - - - - - 407,060 - Proceeds from Capital Debt 6,869,904 - - - - - 6,869,904 - Acquisition of Capital Assets (4,523,926) (75,472) (140,131) (158,464) - (492,830) (5,390,823) - Proceeds from Disposals of Capital Assets 6,048 - - - - 1,311 7,359 - Principal Paid on Bonds (4,580,000) - (75,000) (540,000) (261,000) - (5,456,000) - Interest and Fiscal Charges Paid on Bonds (1,169,780) - (26,100) (296,558) (82,044) - (1,574,482) - Net Cash Used by Capital and Related Financing Activities (2,990,694) (75,472) (241,231) (995,022) (343,044) (491,519) (5,136,982) - CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 656,200 56,508 59,211 26,287 8,724 95,873 902,803 4,422 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 7,037,249 285,304 (131,532) (78,052) (520,408) (1,432,891) 5,159,670 252,280 Cash and Investments - January 1 23,528,150 1,876,930 2,170,718 201,386 842,957 4,170,437 32,790,578 1,861,340 CASH AND INVESTMENTS - DECEMBER 31 30,565,399$ 2,162,234$ 2,039,186$ 123,334$ 322,549$ 2,737,546$ 37,950,248$ 2,113,620$ Business-Type Activities - Enterprise Funds CITY OF EDINA, MINNESOTA STATEMENT OF CASH FLOWS (CONTINUED) PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (31) Governmental Activities RiskNonmajor 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) 4,330,547$ 595,397$ (375,188)$ (81,394)$ (1,172,846)$ (1,933,161)$ 1,363,355$ 591,601$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:Depreciation 5,725,846 113,853 280,518 893,542 665,072 660,615 8,339,446 - (Increase) Decrease in: Accounts Receivable (393,818) 6,092 - 26,964 77,371 72,751 (210,640) 1,486 Special Assessments Receivable 24,548 - - - - - 24,548 - Due from Other Governments - - - - - - - (4,539) Inventory (7,361) 277,924 - (5,570) - 1,063 266,056 - Prepaid Expenses (19,101) 15,634 - (51) - - (3,518) (653,841) Deferred Outflows of Resources (18,327) (17,398) - (10,341) (8,452) (18,357) (72,875) - Increase (Decrease) in: Accounts Payable 81,992 (231,627) 113 (75,385) (67,592) (26,686) (319,185) 150,741 Salaries Payable 39,439 48,062 1,537 22,663 (896) 687 111,492 77,808 Due to Other Governments (854) 20,286 (491) (3,856) (6,470) (15,099) (6,484) 377 Unearned Revenue - 52,168 - 36,730 (14,286) (19,784) 54,828 - Total OPEB Liability (39,291) (32,147) - (21,431) (21,431) (25,003) (139,303) - Net Pension Liability 117,384 117,384 - 67,076 50,307 134,152 486,303 - Compensated Absences 33,882 47,920 - 29,476 11,609 24,218 147,105 - Deferred Inflows of Resources (104,013) (112,506) - (60,650) (39,119) (142,529) (458,817) - Total Adjustments 5,440,326 305,645 281,677 899,167 647,986 646,028 8,220,829 (427,968) Net Cash Provided (Used) by Operating Activities 9,770,873$ 901,042$ (93,511)$ 817,773$ (524,860)$ (1,287,133)$ 9,584,184$ 163,633$ NONCASH INVESTING ACTIVITIESIncrease in Fair Value of Investments 218,529$ 19,020$ 18,882$ 9,752$ 2,388$ 27,805$ 296,376$ -$ NONCASH CAPITAL AND RELATED FINANCING ACTIVITIESAcquisition of Capital Assets with Contracts Payable (160,122)$ -$ -$ 63,984$ -$ -$ (96,138)$ -$ Capital Assets Contributed (to) from Other Funds -$ -$ -$ -$ -$ -$ -$ -$ Business-Type Activities - Enterprise Funds CITY OF EDINA, MINNESOTA STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS DECEMBER 31, 2020 See accompanying Notes to Financial Statements. (32) Custodial Funds Cash and Investments 592,890$ Accounts Receivable 7,681 Due from Other Governmental Units 101,272 Total Assets 701,843 Accounts Payable 61,621 Salaries Payable 10,510 Due to Other Governmental Units 11,882 Unearned Revenue 5,163 Total Liabilities 89,176 Restricted for Organizations and Other Governments 612,667$ Collections on Behalf of Others 1,523,952$ Payments on Behalf of Others 1,422,983 Net Increase (Decrease) in Fiduciary Net Position 100,969 Net position-beginning 511,698 Net position-ending 612,667$ ASSETS LIABILITIES ADDITIONS DEDUCTIONS NET POSITION CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (33) 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 accounting principles generally accepted in the United States of America, 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 accounting principles generally accepted in the United States of America, 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, 2020 (34) 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. In 2020 the City implemented GASB 84, Fiduciary Activities. As a result, the City’s previously reported agency funds are now reported as custodial funds. 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, custodial 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, 2020 (35) 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, 2020 (36) 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, equipment operations, information technology, and facilities management internal service funds account for costs of insurance and risk management programs, equipment operations, IT services, and facilities management 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. Custodial funds – the police seizure, Public Safety Training Facility, and Minnesota Task Force 1 funds account for fees collected for other government agencies. 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 funds is reported in a single column in the proprietary fund financial statements. These services have been allocated proportionately to governmental and business-type activities in the government-wide financial statements. The cost of these services is reported in the appropriate functional activity. Depreciation expense is included in the direct expenses of each function. Interest on long-term debt is considered an indirect expense and is reported separately on the statement of activities. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (37) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 accounting principles generally accepted in the United States of America. 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, 2020 (38) 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, 2020 are planned to be eliminated in 2021. 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, 2020 (39) 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, 2020: Enterprise Funds Debt Service Construction Utilities Special Assessments Receivable: Delinquent -$ 17,891$ 28,676$ Deferred 2,070,224 20,736,692 278,324 Total 2,070,224$ 20,754,583$ 307,000$ Governmental Funds CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (40) 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 to 35 Years Land Improvements 15 to 50 Years Building and Structures 15 to 40 Years Furniture and Office Equipment 5 to 10 Years Vehicles and Equipment 3 to 20 Years Parks 5 to 100 Years Utility Infrastructure 20 to 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, 2020 (41) 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 accounting principles generally accepted in the United States of America 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, 2020 (42) 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, 2020 (43) 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, 2020 (44) 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 accounting principles generally accepted in the United States of America 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 (1,052,866)$ Cash on hand 32,820 Investments 122,175,365 Total 121,155,319$ Cash and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Position 115,337,315$ Restricted Cash and Investments - Statement of Net Position 5,218,752 Cash and Investments - Statement of Fiduciary Net Position 599,252 Total 121,155,319$ The City had restricted investments of $560,758 as of December 31, 2020 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, 2020 (45) 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 ($1,052,866) while the balance on the bank records was $595,590. At December 31, 2020, all of the City’s deposits were properly collateralized in accordance with state statutes. C. Investments The City has the following investments at year-end: Fair Value Measurements Investment Rating Agency Using < 1 1 to 5 6 to 10 > 10 Total U.S. Treasuries N/A N/A Level 1 999,690$ 16,928,943$ 1,468,554$ 23,510$ 19,420,697$ Negotiable CDs N/R N/R Level 2 4,725,363 4,670,433 - - 9,395,796 SBA Notes AA+ S&P Level 1 473,088 - - - 473,088 FHLB AA+ S&P Level 2 785,238 564,202 - - 1,349,440 FHLMC AA+ S&P Level 2 75,460 27,607 1,568,307 - 1,671,374 FNMA AA+ S&P Level 2 - 1,844,571 50,242 12,242,106 14,136,919 FFCB AA+ S&P Level 2 40,169 19,122 - - 59,291 Municipal Bonds AA- to AAA S&P Level 2 13,435,909 20,695,879 1,279,551 - 35,411,339 Short-Term Corporate A1+ S&P Level 2 - 1,012,810 - - 1,012,810 Commercial Paper N/R to A1 S&P Level 2 640,581 - - - 640,581 Subtotal 21,175,498$ 45,763,567$ 4,366,654$ 12,265,616$ Money Market*37,624,901 4M Fund*979,129 Total investments 122,175,365$ 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, 2020 (46) 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 $10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City’s investment policies specifically address credit risk, further limiting the City’s exposure to credit risk by requiring that all state and local government obligations to be rated “AA” or better by a national rating agency. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (47) NOTE 2 CASH AND INVESTMENTS POLICIES (CONTINUED) C. Investments (Continued) Concentration Risk – This is the risk associated with investing a significant portion of the City’s investment (considered 5% or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City’s investment policies specifically address the City’s desire to limit concentration risk, but do not set specific guidelines for measurement of this risk. At year-end, the City’s investments include 11.57% in securities issued by FNMA. Interest Rate Risk – This is the risk of potential variability in the fair value of fixed rate investment resulting in changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City’s investment policies specifically address the City’s desire to limit interest rate risk, but do not set specific guidelines for measurement of this risk. NOTE 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2020 is as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets Not Being Depreciated: Land 24,115,118$ 183,408$ -$ 24,298,526$ Easements 253,000 - - 253,000 Construction in Progress 8,328,757 5,873,858 (7,510,750) 6,691,865 Total Capital Assets Not Being Depreciated 32,696,875 6,057,266 (7,510,750) 31,243,391 Capital Assets Being Depreciated: Land Improvements 25,567,393 554,585 - 26,121,978 Buildings and Structures 64,210,041 - - 64,210,041 Furniture and Office Equipment 3,937,521 - - 3,937,521 Vehicles and Equipment 19,178,034 4,504,425 (2,252,950) 21,429,509 Infrastructure 152,233,801 4,363,801 (375,491) 156,222,111 Parks 22,760,441 1,162,563 (13,874) 23,909,130 Total Capital Assets Being Depreciated 287,887,231 10,585,374 (2,642,315) 295,830,290 Less Accumulated Depreciation for: Land Improvements (19,663,915) (642,527) - (20,306,442) Buildings and Structures (27,363,047) (1,749,692) - (29,112,739) Furniture and Office Equipment (3,553,337) (105,851) - (3,659,188) Vehicles and Equipment (11,281,009) (1,587,633) 1,868,445 (11,000,197) Infrastructure (68,210,953) (5,205,959) 375,491 (73,041,421) Parks (13,465,202) (982,316) 13,874 (14,433,644) Total Accumulated Depreciation (143,537,463) (10,273,978) 2,257,810 (151,553,631) Total Capital Assets Being Depreciated, Net 144,349,768 311,396 (384,505) 144,276,659 Governmental Activities Capital Assets, Net 177,046,643$ 6,368,662$ (7,895,255)$ 175,520,050$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (48) NOTE 3 CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Capital Assets Not Being Depreciated: Land 285,341$ -$ -$ 285,341$ Easements 35,600 - - 35,600 Construction in Progress 8,409,273 5,839,513 (7,930,438) 6,318,348 Total Capital Assets Not Being Depreciated 8,730,214 5,839,513 (7,930,438) 6,639,289 Capital Assets Being Depreciated: Land Improvements and Golf Course 15,509,908 179,418 - 15,689,326 Buildings and Structures 39,084,961 35,936 - 39,120,897 Furniture and Office Equipment 140,448 - - 140,448 Vehicles and Equipment 13,445,529 613,453 (52,432) 14,006,550 Utility Infrastructure 150,013,262 6,652,941 - 156,666,203 Lease Property Capital Lease 430,614 - - 430,614 Total Capital Assets Being Depreciated 218,624,722 7,481,748 (52,432) 226,054,038 Less Accumulated Depreciation for: Land Improvements and Golf Course (4,716,743) (705,717) - (5,422,460) Buildings and Structures (20,056,601) (1,615,269) - (21,671,870) Furniture and Office Equipment (140,448) - - (140,448) Vehicles and Equipment (7,612,944) (769,969) 52,432 (8,330,481) Utility infrastructure (61,941,893) (5,248,491) - (67,190,384) Lease Property Capital Lease (430,614) - - (430,614) Total Accumulated Depreciation (94,899,243) (8,339,446) 52,432 (103,186,257) Total Capital Assets Being Depreciated, Net 123,725,479 (857,698) - 122,867,781 Business-Type Activities Capital Assets, Net 132,455,693$ 4,981,815$ (7,930,438)$ 129,507,070$ Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General Government 177,702$ Public Safety 1,510,802 Public Works 6,760,144 Parks 1,825,330 Total Depreciation Expense - Governmental Activities 10,273,978$ Business-Type Activities: Utilities 5,725,846$ Liquor 113,853 Aquatic Center 280,518 Golf Course 893,542 Arena 665,072 Art Center 5,891 Edinborough Park 102,579 Centennial Lakes 39,065 Sports Dome 513,080 Total Depreciation Expense - Business-Type Activities 8,339,446$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (49) NOTE 3 CAPITAL ASSETS (CONTINUED) Construction Commitments At December 31, 2020, 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 ENG20006 W 74th Street Sidewalk 196,631$ 3,575$ ADM20001 City Hall Reception Area 15,000 13,285 ENG16002 MSA Maintenance Projects 804,639 11,082 PWK20001 WTP#6 Ammonia Room and Improvements 115,288 24,461 ENG98001 50th & France Maintenance 28,698 20,088 ADM20001 City Hall Reception Area 186,890 180,799 17-047 Edinborough Park Plaza Entrance 562,836 159,182 N/A Aquatic Center Slide Tower Inspection 18,000 3,340 ENG20037 SCADA - Water 79,315 8,359 PWK19002 Community Center Water Tower 629,450 53,625 ENG19019 Flood Risk Reduction Strategy Project 30,000 10,270 ENG19019 Flood Risk Reduction Strategy Project 118,000 88,494 ENG19019 Flood Risk Reduction Strategy Project 127,100 12,160 ENG19019 Flood Risk Reduction Strategy Project 70,000 9,142 Total 597,862$ NOTE 4 LONG-TERM DEBT The City has four types of bonded debt outstanding at December 31, 2020: 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, 2020 (50) NOTE 4 LONG-TERM DEBT (CONTINUED) Governmental Activities As of December 31, 2020, 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 12/31/2020 General Obligation Bonds: General Obligation - Capital Improvement Plan, 2010A 2.00-4.00% 11/18/2010 2/1/2021 8,285,000$ 895,000$ General Obligation - Capital Improvement Plan, 2013A - Refunding 3.00-3.50% 10/10/2013 2/1/2030 5,710,000 3,650,000 General Obligation - 2016A - Refunding 2.00-3.00% 7/6/2016 2/1/2028 3,635,000 2,750,000 General Obligation - 2017C - Refunding 2.05-400% 12/14/2017 2/1/2029 8,955,000 7,625,000 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 17,725,000 Permanent Improvement Revolving (PIR) Bonds: Permanent Improvement Revolving, 2010B 2.00-3.00% 11/18/2010 2/1/2022 2,305,000 505,000 Permanent Improvement Revolving, 2011A 2.00-3.00% 10/27/2011 2/1/2023 3,320,000 1,080,000 Permanent Improvement Revolving, 2012A 3.00-4.00% 11/15/2012 2/1/2029 2,675,000 1,760,000 Permanent Improvement Revolving, 2013A 3.00-3.50% 10/10/2013 2/1/2030 2,555,000 1,825,000 Permanent Improvement Revolving, 2015A 2.00-4.00% 7/9/2015 2/1/2032 6,545,000 5,455,000 Permanent Improvement Revolving, 2015A - Parking 2.00-4.00% 7/9/2015 2/1/2036 2,495,000 2,105,000 Permanent Improvement Revolving, 2016A 2.00-3.00% 7/6/2016 2/1/2033 3,940,000 3,505,000 Permanent Improvement Revolving, 2017A 3.00-4.00% 6/29/2017 2/1/2034 1,995,000 1,895,000 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 Permanent Improvement Revolving, 2020A 2.00-4.00% 6/25/2020 2/1/2037 390,000 390,000 Permanent Improvement Revolving, 2020B 1.09% 12/30/2020 2/1/2029 1,601,000 1,601,000 Total PIR Bonds 34,216,000 24,526,000 Public Project Revenue Bonds: Public Project Revenue, Series 2009A 2.10-4.55% 11/24/2009 2/1/2030 2,595,000 1,265,000 Public Project Revenue, Series 2014A 2.00-3.625% 7/15/2014 2/1/2035 16,155,000 12,935,000 Public Project Revenue, Series 2015A - Refunding 2.50-3.00% 7/9/2015 5/1/2026 3,490,000 2,045,000 Total Public Project Revenue Bonds 22,240,000 16,245,000 Total Bonded Indebtedness - Governmental Activities 85,846,000$ 58,496,000$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (51) 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 2012C 2.00-3.00% 11/15/2012 2/1/2033 2,100,000$ 2,040,000$ Recreational Facility Bonds, Series 2013B 3.00-3.45% 10/10/2013 2/1/2029 1,125,000 740,000 Recreational Facility Bonds, Series 2015B 2.00-325% 7/9/2015 2/1/2031 2,140,000 1,650,000 Recreational Facility Bonds, Series 2017B 3.00-4.00% 6/29/2017 2/1/2033 7,425,000 6,525,000 Recreational Facility Bonds, Series 2017D - Refunding 2.00% 12/20/2017 2/1/2030 1,640,000 1,333,000 Utility Revenue Bonds, Series 2011A 2.00-3.00% 10/27/2011 2/1/2022 11,230,000 2,470,000 Utility Revenue Bonds, Series 2012A 3.00-4.00% 11/15/2012 2/1/2023 6,100,000 2,070,000 Utility Revenue Bonds, Series 2014A 2.00-3.00% 7/15/2014 2/1/2024 5,680,000 2,410,000 Utility Revenue Bonds, Series 2015A 2.00-4.00% 7/9/2015 2/1/2025 5,235,000 2,745,000 Utility Revenue Bonds, Series 2016A 2.00-3.00% 7/6/2016 2/1/2027 8,775,000 6,400,000 Utility Revenue Bonds, Series 2017A 3.00-4.00% 6/29/2017 2/1/2028 6,595,000 5,475,000 Utility Revenue Bonds, Series 2018A 3.00-4.00% 6/27/2018 2/1/2029 3,305,000 3,020,000 Utility Revenue Bonds, Series 2019A 3.00-4.00% 6/13/2019 2/1/2036 5,815,000 5,815,000 Utility Revenue Bonds, Series 2020A 2.00-4.00% 6/25/2020 2/1/2031 4,830,000 4,830,000 Utility Revenue Bonds, Series 2020B - Refunding 1.09% 12/30/2020 2/1/2023 1,414,000 1,414,000 Total Bonded Indebtedness - Business- Type Activities 79,119,000$ 48,937,000$ Annual debt service requirements to maturity for the City’s bonds are as follows: Year Ending December 31,Principal Interest Principal Interest Principal Interest 2021 2,505,000$ 561,700$ 3,546,000$ 698,772$ 1,145,000$ 505,649$ 2022 1,670,000 482,000 2,035,000 622,645 1,185,000 472,949 2023 1,735,000 419,050 1,862,000 560,201 1,220,000 438,951 2024 1,800,000 353,550 1,544,000 504,686 1,255,000 400,171 2025 1,870,000 286,775 1,580,000 456,261 1,295,000 360,980 2026-2030 8,145,000 519,565 8,334,000 1,541,894 5,145,000 1,269,158 2031-2035 - - 5,205,000 395,084 5,000,000 459,166 2036-2037 - - 420,000 7,238 - - Total 17,725,000$ 2,622,640$ 24,526,000$ 4,786,781$ 16,245,000$ 3,907,024$ Governmental Activities General Obligation Bonds Public Improvement Revolving Bonds Public Project Revenue Bonds Year Ending December 31,Principal Interest 2021 7,829,000$ 1,520,719$ 2022 6,683,000 1,286,324 2023 5,251,000 1,090,251 2024 5,057,000 910,199 2025 4,599,000 741,040 2026-2030 16,643,000 1,654,164 2031-2033 2,875,000 106,119 Total 48,937,000$ 7,308,816$ Business-Type Activities Revenue Bonds CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (52) NOTE 4 LONG-TERM DEBT (CONTINUED) Change in Long-Term Liabilities Long-term liability activity for the year ended December 31, 2020 was as follows: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Bonds Payable: General Obligation 19,905,000$ -$ (2,180,000)$ 17,725,000$ 2,505,000$ PIR 25,105,000 1,991,000 (2,570,000) 24,526,000 3,546,000 Public Project Revenue 17,360,000 - (1,115,000) 16,245,000 1,145,000 Less Deferred Amounts: Premiums on Bonds 2,658,601 34,176 (349,095) 2,343,682 - Total Bonds Payable 65,028,601 2,025,176 (6,214,095) 60,839,682 7,196,000 Loans Payable 750,000 - - 750,000 - Compensated Absences 3,986,045 2,338,347 (1,716,719) 4,607,673 1,843,069 Governmental Activity Long-Term Liabilities 69,764,646$ 4,363,523$ (7,930,814)$ 66,197,355$ 9,039,069$ Business-Type Activities: Bonds Payable: Revenue Bonds 48,149,000$ 6,244,000$ (5,456,000)$ 48,937,000$ 7,829,000$ Less Deferred Amounts: Premiums on Bonds 3,503,895 625,905 (504,578) 3,625,222 - Total Bonds Payable 51,652,895 6,869,905 (5,960,578) 52,562,222 7,829,000 Compensated Absences 656,928 360,999 (213,894) 804,033 321,613 Business-Type Activity Long-Term Liabilities 52,309,823$ 7,230,904$ (6,174,472)$ 53,366,255$ 8,150,613$ For governmental activities, compensated absences are generally liquidated by the general fund. On June 25, 2020, the City issued $5,220,000 of General Obligation Bonds, Series 2020A. The proceeds of these bonds are being used to finance construction of various public street improvement and utility system improvement projects. The bonds include coupon rates of 2.00-4.00%, with a final maturity date of February 1, 2031 for the utility portion of the bonds and February 1, 2037 for the public improvement revolving fund portion of the bonds. On December 30, 2020, the City issued $3,015,000 of General Obligation Refunding Bonds, Series 2020B, to advance refund, in 2022, the 2022 through 2029 maturities of the City’s outstanding 2012A bonds. The bonds include coupon rates of 1.09%, with a final maturity date of February 1, 2023 for the utility portion of the bonds and February 1, 2029 for the streets portion of the bonds. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (53) NOTE 4 LONG-TERM DEBT (CONTINUED) Revenue Pledged Future revenue pledged for the payment of long-term debt is as follows: Percent of Remaining Principal Pledged Total Debt Terms of Principal and Interest Revenue Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received 2012C Recreational Facility Bonds Arena Improvements Arena 100 % 2013-2033 2,405,228$ 112,894$ 1,638,011$ 2013B Recreational Facility Bonds Golf Dome Improvements Golf 100 2014-2029 853,558 94,465 3,947,681 2015B Recreational Facility Bonds Golf Course Improvements Golf 100 2016-2031 1,943,303 175,094 3,947,681 2017B Recreational Facility Bonds Golf Course Improvements Golf 100 2018-2033 7,334,950 567,000 3,947,681 2017B Recreational Facility Bonds Pool Improvements Pool 100 2018-2027 704,900 101,100 161 2017D Recreational Facility Bonds Arena Improvements Arena 100 2018-2030 1,470,300 154,550 1,638,011 2011A Utility Revenue Bonds Utility Infrastructure Utility 100 2012-2022 2,544,700 1,276,875 25,731,887 2012A Utility Revenue Bonds Utility Infrastructure Utility 100 2013-2023 2,101,050 726,925 25,731,887 2014A Utility Revenue Bonds Utility Infrastructure Utility 100 2014-2024 2,548,075 634,750 25,731,887 2015A Utility Revenue Bonds Utility Infrastructure Utility 100 2016-2025 2,995,400 608,700 25,731,887 2016A Utility Revenue Bonds Utility Infrastructure Utility 100 2017-2027 6,977,994 997,688 25,731,887 2017A Utility Revenue Bonds Utility Infrastructure Utility 100 2018-2028 6,288,050 785,100 25,731,887 2018A Utility Revenue Bonds Utility Infrastructure Utility 100 2019-2029 3,505,925 390,225 25,731,887 2019A Utility Revenue Bonds Utility Infrastructure Utility 100 2020-2036 7,385,125 329,517 25,731,887 2020A Utility Revenue Bonds Utility Infrastructure Utility 100 2021-2031 5,752,600 - 25,731,887 2020B Utility Revenue Bonds Utility Infrastructure Utility 100 2021-2023 1,434,658 - 25,731,887 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 2020 is computed as follows: 2020 Market Value (After Fiscal Disparities) 12,785,797,501$ Debt Limit (3% of Market Value) 383,573,925$ Amount of Debt Applicable to Debt Limit: Total Bonded Debt 107,433,000$ Less: Public Improvement Revolving Bonds (24,526,000) Revenue Bonds (48,937,000) Total Debt Applicable to Debt Limit 33,970,000$ Legal Debt Margin 349,603,925$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (54) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE The City participates in various pension plans, total pension expense for the year ended December 31, 2020 was $2,350,571. The components of pension expense are noted in the following plan summaries: A. Plan Description The City participates in the following cost-sharing multiemployer 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, 2020 (55) 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% of the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1% and a maximum of 1.5%. 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% . 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, 2020 (56) 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 2020 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, 2020 were $1,518,494. 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 11.3% of their annual covered salary to 11.8% and employer rates increased from 16.95% to 17.70% on January 1, 2020. The City’s contributions to the Police and Fire Fund for the year ended December 31, 2020 were $1,784,694. 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, 2020, the City reported a liability of $16,405,731 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 2020. 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 $511,142. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by the PERA during the measurement period for employer payroll paid dates from July 1, 2019 through June 30, 2020, relative to the total employer contributions received from all of the PERA’s participating employers. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (57) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) D. Pension Costs (Continued) 1. General Employees Fund Pension Costs (Continued) The City’s proportionate share was 0.2764% at the end of the measurement period and 0.2694% for the beginning of the period. City's Proportionate Share of the Net Pension Liability 16,405,731$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 511,142 Total 16,916,873$ For the year ended December 31, 2020, the City recognized pension expense of $818,271 for its proportionate share of the General Employees Plan’s pension expense. In addition, the City recognized an additional $44,485 as pension expense (and grant revenue) for its proportionate share of the state of Minnesota’s contribution of $16 million to the General Employees Fund. At December 31, 2020, the City reported its proportionate share of the General Employees Plan’s deferred outflows of resources and deferred inflows of resources, related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences Between Expected and Actual Economic Experience 149,582$ 62,073$ Changes in Actuarial Assumptions - 608,226 Differences Between Projected and Actual Investment Earnings 283,422 - Changes in Proportion 377,315 148,243 Contributions Paid to the PERA Subsequent to the Measurement Date 753,322 - Total 1,563,641$ 818,542$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (58) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) D. Pension Costs (Continued) 1. General Employees Fund Pension Costs (Continued) $753,322 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Ending December 31,Amount 2021 (954,558)$ 2022 119,331 2023 426,547 2024 400,457 2. Police and Fire Fund Pension Costs At December 31, 2020, the City reported a liability of $11,472,803 for its proportionate share of the Police and Fire Fund’s net pension liability. The net pension liability was measured as of June 30, 2020, 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, 2019 through June 30, 2020, relative to the total employer contributions received from all of the PERA’s participating employers. The City’s proportionate share was 0.8704% for the beginning of the period. The state of Minnesota contributed $13.5 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the definition of a special funding situation and $9.0 million in supplemental state aid that does not meet the definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (59) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) D. Pension Costs (Continued) 2. Police and Fire Plan Pension Costs (Continued) The state of Minnesota is included as a nonemployer contributing entity in the Police and Fire Retirement Plan Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid. Police and Fire Plan employers need to recognize their proportionate share of the state of Minnesota’s pension expense (and grant revenue) under GASB 68 special funding situation accounting and financial reporting requirements. For the year ended December 31, 2020, the City recognized pension expense of $1,532,300 for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized $83,153 as grant revenue for its proportionate share of the state of Minnesota’s pension expense for the contribution of $4.5 million to the Police and Fire Fund. The state of Minnesota is not included as a nonemployer contributing entity in the Police and Fire Pension Plan pension allocation schedules for the $9 million in supplemental state aid. The City recognized $78,336 for the year ended December 31, 2020 as revenue and an offsetting reduction of net pension liability for its proportionate share of the state of Minnesota’s on-behalf contributions to the Police and Fire Fund. City's Proportionate Share of the Net Pension Liability 11,472,803$ State of Minnesota's Proportionate Share of the Net Pension Liability Associated with the City 270,277 Total 11,743,080$ At December 31, 2020, 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 506,934$ 544,833$ Changes in Actuarial Assumptions 3,844,775 7,155,181 Differences Between Projected and Actual Investment Earnings 348,482 - Changes in Proportion 921,320 94,667 Contributions Paid to the PERA Subsequent to the Measurement Date 902,763 - Total 6,524,274$ 7,794,681$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (60) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) D. Pension Costs (Continued) 2. Police and Fire Plan Pension Costs (Continued) $902,763 reported as deferred outflows of resources related to pensions resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Pension Expense Year Ending December 31,Amount 2021 (627,872)$ 2022 (2,980,619) 2023 668,176 2024 694,762 2025 72,383 E. Actuarial Assumptions The total pension liability in the December 31, 2020 actuarial valuation was determined using an individual entry age normal actuarial cost method and the following actuarial assumptions: General Employees Fund Police and Fire Fund Inflation 2.25% per year 2.50% per year Active Member Payroll Growth 3.00% per year 3.25% per year Investment Rate of Return 7.50% 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants were based on Pub-2010 General Employee Mortality table for the General Employees Plan and RP 2014 tables for the Police and Fire 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% per year for the General Employees Plan. For the Police and Fire Plan, cost of living benefit increases for retirees are 1.0% per year as set by state statute. Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience studies. The most recent four-year experience study for the General Employees Plan was completed in 2019. The assumption changes were adopted by the Board and became effective with the July 1, 2020 actuarial valuation. The four-year experience study used for the Police and Fire Plan was completed in 2016. Inflation and investment return assumptions for the Police and Fire Plan are based on the General Employees Retirement Plan experience study completed in 2019. The most recent four- year experience studies for the Police and Fire Plan were completed in 2020. The recommended assumptions for those plans were adopted by the Board and will be effective with the July 1, 2021 actuarial valuations if approved by the Legislature. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (61) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) E. Actuarial Assumptions (Continued) The following changes in actuarial assumptions and plan provisions occurred in 2020: General Employees Fund Changes in Actuarial Assumptions:  The price inflation assumption was decreased from 2.50% to 2.25%.  The payroll growth assumption was decreased from 3.25% to 3.00%.  Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates.  Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements.  Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years 2-5 and slightly higher thereafter.  Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.  The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments.  The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.  The assumed spouse age difference was changed from two years older for females to one year older.  The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions:  Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. Police and Fire Fund Changes in Actuarial Assumptions:  The mortality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions:  There have been no changes since the prior valuation. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (62) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) E. Actuarial Assumptions (Continued) 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: Long-Term Target Expected Real Asset Class Allocation Rate of Return Domestic Stocks 35.5 % 5.10 % International Stocks 17.5 % 5.30 Bonds (Fixed Income)20.0 % 0.75 Alternative Assets (Private Markets)25.0 % 5.90 Cash 2.0 % - F. Discount Rate The discount rate used to measure the total pension liability in 2020 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 26,292,692$ 16,405,731$ 8,249,778$ The City’s Proportionate Share of the PEPFF Net Pension Liability 22,866,949$ 11,473,080$ 2,046,145$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (63) NOTE 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE (CONTINUED) H. Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained on the PERA website at www.mnpera.org. I. Public Employees Defined Contribution Plan (DCP) Board members of the City are covered by the DCP, a multiemployer 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 2020 were: Required Employee Employer Employee Employer Rate 2,459$ 2,459$ 5 % 5 % 5 % Contribution Amount Percentage of Covered Payroll NOTE 7 MULTIEMPLOYER DEFINED BENEFIT PENSION PLAN City employees belonging to International Union of Operating Engineers (IUOE) are participants in a multiemployer 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, 2020 (64) NOTE 7 MULTIEMPLOYER DEFINED BENEFIT PENSION PLAN (CONTINUED) The City has 56 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, 2021. 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, 2020 were $86,848. 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 publicly 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, 2020 (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 $148,000. 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 28 Active Plan Members 301 Total Members 329 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, 2020. Liabilities in this report were rolled forward to the measurement date of December 31, 2020. F. Actuarial Assumptions The total OPEB liability was determined by an actuarial valuation as of January 1, 2020, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified. Discount Rate 2.74% 20-Year Municipal Bond Yield 2.74% Salary Increases 3.25% Medical Trend Rate 7.67% grading to 5.00% over 9 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 2.74%, which was set by considering published rate information for 20-year high quality, tax exempt, general obligation municipal bonds as of the measurement date. The City discount rate used in the prior measurement date was 4.09%. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (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-2018, from a base year of 2014 for GERF members and MP-2018, from a base year of 2006 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 3,617,512$ Changes for the Year: Service Cost 192,093 Interest 154,222 Difference between expected and actual experience (1,909,627) Changes of Assumptions 212,364 Benefit Payments (77,801) Total Net Changes (1,428,749) Ending Balance 2,188,763$ Assumption changes since the prior measurement date include the following:  The discount rate was changed from 4.09% to 2.47%.  The payroll growth rate changed from 3.50% to 3.25% 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 1.74 % 2.74 % 3.74 % Total OPEB Liability 2,353,222$ 2,188,763$ 2,030,091$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (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 6.67% decreasing to 4.00% over 10 years 7.67% decreasing to 5.00% over 10 years 8.67% decreasing to 6.00% over 10 years Total OPEB Liability 1,918,399$ 2,188,763$ 2,513,953$ 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 $165,623. As of year- end, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference between expected -$ 1,717,157$ and actual experience Changes of Assumptions 250,700 141,226 City Contributions Subsequent to the Measurement Date 148,000 - Total 398,700$ 1,858,383$ A total of $148,000 reported as deferred outflows of resources related to OPEB resulting from city contributions subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending December 31, 2021. Other amounts reported as deferred outflows and inflows of resources related to the plan will be recognized in pension expense as follows: OPEB Expense Year Ended December 31,Amount 2021 (180,692)$ 2022 (180,692) 2023 (180,692) 2024 (180,692) 2025 (180,692) Thereafter (704,223) CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (68) NOTE 9 RECEIVABLES, PAYABLES, AND TRANSFERS Debt Aquatic Nonmajor General Service Construction Liquor Center Golf Course Arena Enterprise Total Transfer Out: Construction Fund 2,966,294$ 2,870,125$ -$ -$ 140,131$ -$ -$ -$ 5,976,550$ Utilities Fund 148,967 - 100,000 3,226 3,868 48,954 38,772 80,216 424,003 Liquor Fund - - 175,000 - - - 300,000 125,000 600,000 Total 3,115,261$ 2,870,125$ 275,000$ 3,226$ 143,999$ 48,954$ 338,772$ 205,216$ 7,000,553$ 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 $300,000 and $125,000 to the arena and art center funds, respectively, to subsidize operations. 2. The utilities fund and liquor fund transferred $100,000 and $175,000 to the construction fund to fund the capital improvement program, as planned in the 2020 budget. 3. The construction fund transferred $2,966,294 to the general fund for budget stabilization. 4. The construction fund transferred $2,870,125 of PIR assessment revenue to the debt service fund for related debt payments. 5. The construction fund transferred $140,131 to the aquatic center fund for pool painting and slide tower restoration. 6. The utilities fund transferred a total of $175,036 to the other enterprise funds to assist with various capital costs NOTE 10 TAX INCREMENT DISTRICTS The Housing Redevelopment Authority and City of Edina are the administering authorities for the following Tax Increment Districts: District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022. District number 1211 (Pentagon Park Increment Financing District) is an economic development district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043. District number 1212 (Grandview 2 Increment Financing District) is an economic development district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045. District number 1214 (66 West Increment Financing District) is an economic development district established in 2016 pursuant to Minnesota Statutes with a termination date of 2045. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (69) NOTE 10 TAX INCREMENT DISTRICTS (CONTINUED) 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. District number 1216 (44th and France 2) is a renewal and renovation development district established in 2019 pursuant to Minnesota Statutes with a termination date of 2036. District number 1217 (West 76th Street) is a housing district established in 2019 pursuant to Minnesota Statutes with a termination date of 2042. District number 1218 (72nd and France) is a housing district established in 2019 pursuant to Minnesota Statutes with a termination date of 2043. District number 1219 (Amundson Ave) is an affordable housing district established in 2019 pursuant to Minnesota Statutes with a termination date of 2042. The following table reflects values as of December 31, 2020: TIF #1208 TIF #1211 TIF #1212 TIF #1214 TIF #1215 Original Tax Capacity 7,289,563$ 691,608$ 39,890$ 14,753$ 57,986$ Current Tax Capacity 8,410,057 1,475,948 660,050 30,455 550,606 Fiscal Disparities 3,958,675 497,533 20,664 - 30,964 Tax Capacity Change (2,838,181) 286,807 599,496 15,702 461,656 Retained Captured Tax Capacity (2,838,181)$ 286,807$ 599,496$ 15,702$ 461,656$ TIF #1216 TIF #1217 TIF #1218 TIF #1219 Total 29,735$ 42,886$ 217,506$ 16,948$ 8,400,875$ 65,825 32,670 217,506 13,161 11,456,278 5,625 - 73,320 - 4,586,781 30,465 (10,216) (73,320) (3,787) (1,531,378) 30,465$ (10,216)$ (73,320)$ (3,787)$ (1,531,378)$ 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. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (70) NOTE 11 CONTINGENCIES (CONTINUED) A. Risk Management (Continued) 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 2020. B. Litigation The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. C. Federal and State Funds The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2020. 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, 2020, the City of Edina had four series of Housing and Health Care Revenue Bonds, with an aggregate principal amount payable of $27,340,000. 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. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (71) 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. 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, 2020, the City paid a total of $69,302 in membership fees to the PSTF, equal to 19.0% of membership fees collected for the year. NOTE 15 FUND BALANCES A. Classifications At December 31, 2020, a summary of the City’s governmental fund balance classifications are as follows: General HRA Debt Service Construction Nonmajor Fund Fund Fund Fund Funds Total Nonspendable: 28,403$ -$ -$ -$ -$ 28,403$ Restricted: Park Dedication 58,086 - - - - 58,086 Tax Increments - 19,136,827 - - - 19,136,827 Affordable Housing - 5,048,387 - - - 5,048,387 Debt Service - - 9,727,306 - - 9,727,306 Forfeitures - - - - 687,939 687,939 Arts and Culture - - - - 68,895 68,895 Donations - - - - 126,692 126,692 Conservation and Sustainability Initiatives - - - - 1,793,387 1,793,387 Total Restricted 58,086 24,185,214 9,727,306 - 2,676,913 36,647,519 Assigned Compensated absences 1,843,069 - - - - 1,843,069 Budget Stabilization 4,327,723 - - - - 4,327,723 Race and equity 8,556 - - - - 8,556 Geographic information system (GIS)91,542 - - - - 91,542 Building Security 184,383 - - - - 184,383 Unrealized Investment Gains or Losses 194,974 - - - - 194,974 Public Health Grant 29,630 - - - - 29,630 Special projects - - - 2,620,769 - 2,620,769 Equipment - - - 3,349,293 - 3,349,293 PIR - - - 5,497,353 - 5,497,353 Construction - - - 8,167,330 - 8,167,330 Total Assigned 6,679,877 - - 19,634,745 - 26,314,622 Unassigned 20,476,747 - - - (50,610) 20,426,137 Total Fund Balance 27,243,113$ 24,185,214$ 9,727,306$ 19,634,745$ 2,626,303$ 83,416,681$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2020 (72) NOTE 15 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, 2020, the City has $20,476,747 of unassigned fund balance in the general fund, or 60.2% of 2021 budgeted property tax revenue. This amount is $4,503,106 above the goal range identified in the policy. C. Deficit Fund Equity The following funds had a deficit fund balance/net position at December 31, 2020: Nonmajor Governmental Funds: Pedestrian and Cyclist Safety (50,610)$ Nonmajor Proprietary Funds: Art Center (255,075) CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE – GENERAL FUND YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Required Supplementary Information. (73) 2020 Actual Variance with Original Final Amounts Final Budget REVENUES Taxes: General Property Taxes 32,021,243$ 32,021,243$ 31,901,482$ (119,761)$ Franchise Taxes 850,000 850,000 811,004 (38,996) Lodging Tax 27,000 27,000 8,313 (18,687) Total Taxes 32,898,243 32,898,243 32,720,799 (177,444) Licenses and Permits 5,066,561 4,976,687 6,381,889 1,405,202 Intergovernmental: Federal 416,657 416,657 4,276,223 3,859,566 State: Municipal State Aid 195,000 195,000 195,000 - Other 142,500 110,500 301,642 191,142 State Aid - Police 430,000 430,000 522,170 92,170 State Aid - Fire 450,000 450,000 483,996 33,996 Health Programs 119,061 119,061 197,599 78,538 Total Intergovernmental 1,753,218 1,721,218 5,976,630 4,255,412 Charges for Services: Administration 149,511 149,511 77,719 (71,792) Communications and Technology 85,657 85,657 74,190 (11,467) Finance 1,164,649 1,164,649 1,168,405 3,756 Public Works - - 796 796 Engineering 230,400 226,000 245,514 19,514 Police 680,150 628,150 684,806 56,656 Fire 2,441,300 2,089,950 2,243,814 153,864 Parks and Recreation 565,537 118,369 191,044 72,675 Community Development 148,295 148,295 126,287 (22,008) Total Charges for Services 5,465,499 4,610,581 4,812,575 201,994 Fines and Forfeits 950,000 650,000 485,472 (164,528) Miscellaneous: Investment Income 150,000 150,000 597,073 447,073 Rental of Property 457,800 336,500 479,148 142,648 Other 17,900 12,400 132,657 120,257 Total Miscellaneous 625,700 498,900 1,208,878 709,978 Total Revenues 46,759,221 45,355,629 51,586,243 6,230,614 Budgeted Amounts CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED) YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Required Supplementary Information. (74) 2020 Actual Variance with Original Final Amounts Final Budget EXPENDITURES Current: General Government: Administration: Personal Services 1,273,439$ 1,273,439$ 1,236,760$ (36,679)$ Contractual Services 900,238 879,238 899,899 20,661 Commodities 101,150 100,150 28,162 (71,988) Internal Services 141,456 141,456 141,456 - Total Administration 2,416,283 2,394,283 2,306,277 (88,006) Communications: Personal Services 924,717 922,217 872,167 (50,050) Contractual Services 187,700 187,700 151,054 (36,646) Commodities 124,500 124,500 110,249 (14,251) Internal Services 101,964 101,964 101,964 - Total Communications 1,338,881 1,336,381 1,235,434 (100,947) Human Resources: Personal Services 916,828 916,828 825,422 (91,406) Contractual Services 290,900 235,400 229,751 (5,649) Commodities 27,800 27,800 9,770 (18,030) Internal Services 53,208 53,208 53,208 - Total Human Resources 1,288,736 1,233,236 1,118,151 (115,085) Finance: Personal Services 769,693 769,693 803,373 33,680 Contractual Services 335,250 325,250 274,266 (50,984) Commodities 15,500 15,500 16,556 1,056 Internal Services 59,784 59,784 59,784 - Total Finance 1,180,227 1,170,227 1,153,979 (16,248) Community Development: Personal Services 1,507,327 1,507,327 1,506,860 (467) Contractual Services 265,600 248,600 172,629 (75,971) Commodities 8,000 8,000 1,113 (6,887) Internal Services 132,552 132,552 132,552 - Total Community Development 1,913,479 1,896,479 1,813,154 (83,325) Total General Government 8,137,606 8,030,606 7,626,995 (403,611) Public Safety: Police: Personal Services 10,462,686 10,195,656 10,555,368 359,712 Contractual Services 928,207 903,207 808,640 (94,567) Commodities 110,114 110,114 79,161 (30,953) Internal Services 1,416,012 1,333,508 1,333,508 - Total Police 12,917,019 12,542,485 12,776,677 234,192 Fire: Personal Services 8,337,509 8,273,349 8,264,366 (8,983) Contractual Services 768,410 713,210 722,674 9,464 Commodities 392,075 352,825 293,322 (59,503) Internal Services 674,004 638,304 638,351 47 Total Fire 10,171,998 9,977,688 9,918,713 (58,975) Budgeted Amounts CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE – GENERAL FUND (CONTINUED) YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Required Supplementary Information. (75) 2020 Actual Variance with Original Final Amounts Final Budget Budgeted Amounts EXPENDITURES (CONTINUED) Current (Continued): Public Safety (Continued): Public Health: Personal Services 634,147$ 629,147$ 1,063,312$ 434,165$ Contractual Services 338,533 338,533 1,359,138 1,020,605 Commodities 9,000 9,000 246,211 237,211 Internal Services 47,304 47,304 47,304 - Total Public Health 1,028,984 1,023,984 2,715,965 1,691,981 Total Public Safety 24,118,001 23,544,157 25,411,355 1,867,198 Public Works: Public Works: Personal Services 3,067,926 2,982,926 2,885,118 (97,808) Contractual Services 673,600 393,600 373,620 (19,980) Commodities 1,243,000 1,098,000 1,156,769 58,769 Internal Services 1,170,204 1,154,008 1,154,008 - Total Public Works 6,154,730 5,628,534 5,569,515 (59,019) Engineering: Personal Services 1,534,584 1,506,849 1,538,487 31,638 Contractual Services 778,500 623,250 641,075 17,825 Commodities 124,900 115,900 100,027 (15,873) Internal Services 204,408 204,408 204,408 - Total Engineering 2,642,392 2,450,407 2,483,997 33,590 Total Public Works 8,797,122 8,078,941 8,053,512 (25,429) Parks: Parks and Recreation: Personal Services 3,623,801 3,327,326 3,158,161 (169,165) Contractual Services 1,243,895 933,894 846,223 (87,671) Commodities 402,775 356,775 302,438 (54,337) Internal Services 576,396 576,396 576,396 - Total Parks and Recreation 5,846,867 5,194,391 4,883,218 (311,173) Total parks 5,846,867 5,194,391 4,883,218 (311,173) Capital Outlay: Public Safety - - 34,047 34,047 Parks - - 41,000 41,000 Total Capital Outlay - - 75,047 75,047 Total Expenditures 46,899,596 44,848,095 46,050,127 1,202,032 REVENUES OVER (UNDER) EXPENDITURES (140,375) 507,534 5,536,116 5,028,582 OTHER FINANCING SOURCES (USES) Sale of Capital Assets - - 75 75 Transfers In 50,000 2,966,294 3,115,261 148,967 Total Financing Sources (Uses) 50,000 2,966,294 3,115,336 149,042 NET INCREASE (DECREASE) IN FUND BALANCE (90,375)$ 3,473,828$ 8,651,452 5,177,624$ Fund Balance - January 1 18,591,661 FUND BALANCE - DECEMBER 31 27,243,113$ CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND YEAR ENDED DECEMBER 31, 2020 See accompanying Notes to Required Supplementary Information. (76) 2020 Actual Variance with Original Final Amounts Final Budget REVENUES General Property Taxes 192,000$ 192,000$ 192,009$ 9$ Tax increment Collections 6,708,700 6,708,700 6,452,819 (255,881) Intergovernmental - - 199,000 199,000 Investment Income 227,058 227,058 489,463 262,405 Charges for Services 2,000 2,000 41,992 39,992 Other Revenues 1,916,000 1,916,000 2,513,409 597,409 Total Revenues 9,045,758 9,045,758 9,888,692 842,934 EXPENDITURES Current: Personal Services 182,624 182,624 153,128 (29,496) Contractual Services 1,638,000 1,638,000 418,193 (1,219,807) Commodities 2,500 2,500 1,624 (876) Capital Outlay 4,961,000 4,961,000 1,454,131 (3,506,869) Debt Service: Interest and Fiscal Charges 8,000 8,000 - (8,000) Total Expenditures 6,792,124 6,792,124 2,027,076 (4,765,048) REVENUES OVER (UNDER) EXPENDITURES 2,253,634 2,253,634 7,861,616 5,607,982 OTHER FINANCING SOURCES (USES) Sale of capital assets - - 100,000 100,000 NET INCREASE (DECREASE) IN FUND BALANCE 2,253,634$ 2,253,634$ 7,961,616 5,707,982$ Fund Balance - January 1 16,223,598 FUND BALANCE - DECEMBER 31 24,185,214$ 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, 2020 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, 2019 December 31, 2018 December 31, 2017 Total OPEB Liability: Service Cost 192,093$ 296,634$ 270,435$ Interest 154,222 128,559 127,096 Difference between expected and actual experience (1,909,627) - - Changes of Assumptions 212,364 (178,824) 87,259 Benefit Payments (77,801) (138,732) (133,679) Net Changes in Total OPEB Liability (1,428,749) 107,637 351,111 Total OPEB Liability - Beginning of Year 3,617,512 3,509,875 3,158,764 Total OPEB Liability - End of Year 2,188,763$ 3,617,512$ 3,509,875$ Covered-Employee Payroll 25,800,000$ 24,800,000$ 23,900,000$ Total OPEB Liability as a Percentage of Covered-Employee Payroll 8.48% 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, 2020 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% 12/31/2020 6/30/2020 0.2764% 16,405,731 511,142 16,916,873 19,847,440 85.23% 79.06% 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% 12/31/2020 1,518,494 1,518,494 - 20,246,587 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, 2020 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) State's City's Plan Proportionate City's Proportionate Proportionate Fiduciary Net City's Share of the Share of the Net Pension Share of the Position as a PERA Fiscal Proportion City's Net Pension Liability and the State's Net Pension Percentage City Fiscal Year-End Date of the Net Proportionate Liability Proportionate Share of City's Liability as a of the Total Year-End (Measurement Pension Share of the Net Associated the Net Pension Liability Covered Percentage of Pension Date Date) Liability Pension Liability with the City Associated with the City Payroll Covered Payroll Liability 12/31/2015 6/30/2015 0.8070% 9,169,408$ -$ 9,169,408$ 7,797,803$ 117.59% 86.60% 12/31/2016 6/30/2016 0.7990% 32,065,260 - 32,065,260 7,699,821 416.44% 63.88% 12/31/2017 6/30/2017 0.8110% 10,949,465 - 10,949,465 8,322,605 131.56% 85.43% 12/31/2018 6/30/2018 0.8022% 8,550,626 - 8,550,626 8,454,142 101.14% 88.84% 12/31/2019 6/30/2019 0.8479% 9,026,752 - 9,026,752 9,151,062 98.64% 89.30% 12/31/2020 6/30/2020 0.8704% 11,472,803 270,277 11,743,080 9,819,457 119.59% 87.19% 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% 12/31/2020 1,784,694 1,784,694 - 10,083,017 17.70% Schedule of City Contributions Schedule of City's Proportionate Share of Net Pension Liability CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2020 (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 accounting principles generally accepted in the United States of America. 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: Public Safety: Police 12,542,485$ 12,776,677$ 234,192$ Public Health 1,023,984 2,715,965 1,691,981 Public Works: Engineering 2,450,407 2,483,997 33,590 Capital Outlay - 75,047 75,047 Excess expenditures in the General Fund police and public health are due to additional services and supplies necessary to respond to the COVID-19 pandemic. Some of this budget overage was paid for with federal CRF grant funds provided to the City. Remaining excess expenditures were due to slightly higher than anticipated costs. CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2020 (81) NOTE 2 EXCESS OF EXPENDITURES OVER APPROPRIATIONS (CONTINUED) 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 7,850,224$ 7,872,730$ 22,506$ Braemar Memorial Fund - 1,030 1,030 Police Fund 96,585 200,048 103,463 Pedestrian and Cyclist Safety Fund 1,520,802 1,771,936 251,134 Excess expenditures in the police fund are the result of purchasing a new squad car and associated buildup of expenses. Excess expenditures in the pedestrian and cyclist safety fund are due to more spent on construction costs than had been anticipated. Excess expenditures in the remaining funds are due to slightly higher than anticipated costs. NOTE 3 PENSION INFORMATION General Employees Retirement Fund 2020 Changes Changes in Actuarial Assumptions  The price inflation assumption was decreased from 2.50% to 2.25%.  The payroll growth assumption was decreased from 3.25% to 3.00%.  Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that average 0.25% less than previous rates.  Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study. The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2020 (82) NOTE 3 PENSION INFORMATION (CONTINUED) General Employees Retirement Fund (Continued) 2020 Changes (Continued) Changes in Actuarial Assumptions (Continued)  Assumed rates of termination were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the previous rates for years two through five and slightly higher thereafter.  Assumed rates of disability were changed as recommended in the June 30, 2019 experience study. The change results in fewer predicted disability retirements for males and females.  The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled annuitant mortality table, with adjustments.  The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.  The assumed spouse age difference was changed from two years older for females to one year older.  The assumed number of married male new retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the 100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was adjusted accordingly. Changes in Plan Provisions  Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations occurring after June 30, 2020. 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, 2020 (83) 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% to 3.00% , beginning July 1, 2018.  Deferred augmentation was changed to 0.00% , 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% per year with a provision to increase to 2.50% upon attainment of 90.00% funding ratio to 50.00% of the Social Security Cost of Living Adjustment, not less than 1.00% and not more than 1.50% , 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, 2020 (84) 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 2020 Changes Changes in Actuarial Assumptions  The morality projection scale was changed from MP-2018 to MP-2019. Changes in Plan Provisions  There have been no changes since the prior valuation. 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. CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2020 (85) NOTE 3 PENSION INFORMATION (CONTINUED) Public Employees Police and Fire Fund (Continued) 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% for all years, with no trigger.  An end date of July 1, 2048 was added to the existing $9.0 million state contribution  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% funding, or July 1, 2048, if earlier.  Member contributions were changed from 10.80% to 11.30% of pay, effective January 1, 2019 and 11.80% of pay, effective January 1, 2020.  Employer contributions were changed from 16.20% to 16.95% of pay, effective January 1, 2019 and 17.70% of pay, effective January 1, 2020.  Interest credited on member contributions decreased from 4.00% to 3.00%, beginning July 1, 2018.  Deferred augmentation was changed to 0.00%, 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%. CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2020 (86) NOTE 3 PENSION INFORMATION (CONTINUED) Public Employees Police and Fire Fund (Continued) 2017 Changes (Continued) Changes in Actuarial Assumptions (Continued):  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. 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. CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED DECEMBER 31, 2020 (87) NOTE 4 OTHER POSTEMPLOYMENT BENEFITS INFORMATION Other Postemployment Benefits Plan 2020 Changes Changes in Actuarial Assumptions:  The discount rate was changed from 4.09% to 2.74%.  The payroll growth rate was changed from 3.50% to 3.25% 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. CITY OF EDINA, MINNESOTA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2020 (88) Community Pedestrian Conservation Total Nonmajor Development Braemar and Cyclist Arts and and Governmental Block Grant Police Memorial Safety Culture Sustainability Funds Cash and Investments -$ 687,353$ 126,116$ -$ 68,633$ 1,570,043$ 2,452,145$ Accrued Interest - - 576 1,034 262 5,671 7,543 Accounts Receivable - - - 307,550 - 236,696 544,246 Taxes Receivable - - - - 154 - 154 Due from Other Governments - 9,338 - - - - 9,338 Total Assets -$ 696,691$ 126,692$ 308,584$ 69,049$ 1,812,410$ 3,013,426$ Liabilities: Accounts Payable -$ 8,752$ -$ 120$ -$ 2,344$ 11,216$ Salaries Payable - - - 2,435 - 3,900 6,335 Contracts Payable - - - 104,608 - 12,779 117,387 Due to other funds - - - 252,031 - - 252,031 Total Liabilities - 8,752 - 359,194 - 19,023 386,969 Deferred Inflows of Resources: Unavailable Revenue - Taxes - - - - 154 - 154 Fund Balance: Restricted - 687,939 126,692 - 68,895 1,793,387 2,676,913 Unassigned - - - (50,610) - - (50,610) Total fund balance (deficits)- 687,939 126,692 (50,610) 68,895 1,793,387 2,626,303 Total Liabilities, Deferred Inflows of Resources, and Fund Balance -$ 696,691$ 126,692$ 308,584$ 69,049$ 1,812,410$ 3,013,426$ 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, 2020 (89) Community Pedestrian Conservation Total Nonmajor Development Braemar and Cyclist Arts and and Governmental Block Grant Police Memorial Safety Culture Sustainability Funds REVENUES General Property Taxes -$ -$ -$ -$ 20,000$ -$ 20,000$ Franchise Taxes - - - 1,225,533 - 943,501 2,169,034 Intergovernmental 20,470 - - - - - 20,470 Investment Income - 37 3,690 3,736 1,929 44,917 54,309 Other Revenues - 174,292 350 - 2,309 1,500 178,451 Total Revenues 20,470 174,329 4,040 1,229,269 24,238 989,918 2,442,264 EXPENDITURES Current: General Government 20,470 - - - - - 20,470 Public Safety - 187,404 - - - - 187,404 Public Works - - - 128,066 - 109,602 237,668 Parks - - 1,030 - 2,288 - 3,318 Capital Outlay: Public Safety - 12,644 - - - - 12,644 Public Works - - - 1,643,870 - 140,018 1,783,888 Total Expenditures 20,470 200,048 1,030 1,771,936 2,288 249,620 2,245,392 NET INCREASE (DECREASE) IN FUND BALANCE - (25,719) 3,010 (542,667) 21,950 740,298 196,872 Fund Balance - January 1 - 713,658 123,682 492,057 46,945 1,053,089 2,429,431 FUND BALANCE - DECEMBER 31 -$ 687,939$ 126,692$ (50,610)$ 68,895$ 1,793,387$ 2,626,303$ 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, 2020 (90) Actual Variance with Original Final Amounts Final budget REVENUES Intergovernmental 125,000$ 125,000$ 20,470$ (104,530)$ EXPENDITURES Current: General Government Contractual Services 125,000 125,000 20,470 (104,530) 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, 2020 (91) Actual Variance with Original Final Amounts Final budget REVENUES Investment Income 5$ 5$ 37$ 32$ Other Revenues 172,061 172,061 174,292 2,231 Total Revenues 172,066 172,066 174,329 2,263 EXPENDITURES Current: Public Safety: Contractual Services 89,085 89,085 120,666 31,581 Commodities 7,500 7,500 66,738 59,238 Capital Outlay: Public Safety - - 12,644 12,644 Total Expenditures 96,585 96,585 200,048 103,463 NET INCREASE (DECREASE) IN FUND BALANCE 75,481$ 75,481$ (25,719) (101,200)$ Fund Balance - January 1 713,658 FUND BALANCE - DECEMBER 31 687,939$ 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, 2020 (92) Actual Variance with Original Final Amounts Final budget REVENUES Investment Income 2,007$ 2,007$ 3,690$ 1,683$ Donations 2,500 2,500 350 (2,150) Total Revenues 4,507 4,507 4,040 (467) EXPENDITURES Current: Parks and Recreation: Contractual Services - - 1,030 1,030 NET INCREASE (DECREASE) IN FUND BALANCE 4,507$ 4,507$ 3,010 (1,497)$ Fund Balance - January 1 123,682 FUND BALANCE - DECEMBER 31 126,692$ 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, 2020 (93) Actual Variance with Original Final Amounts Final budget REVENUES Franchise Taxes 1,200,000$ 1,200,000$ 1,225,533$ 25,533$ Investment Income 1,060 1,060 3,736 2,676 Total Revenues 1,201,060 1,201,060 1,229,269 28,209 EXPENDITURES Current: Public Works: Personal Services 115,642 115,642 106,735 (8,907) Contractual Services 75,000 75,000 1,824 (73,176) Commodities 15,000 15,000 12,307 (2,693) Internal Services 7,200 7,200 7,200 - Capital Outlay: Public Works: 1,307,960 1,307,960 1,643,870 335,910 Total Expenditures 1,520,802 1,520,802 1,771,936 251,134 NET INCREASE (DECREASE) IN FUND BALANCE (319,742)$ (319,742)$ (542,667) (222,925)$ Fund Balance - January 1 492,057 FUND BALANCE - DECEMBER 31 (50,610)$ 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, 2020 (94) Actual Variance with Original Final Amounts Final budget REVENUES General Property Taxes 20,000$ 20,000$ 20,000$ -$ Investment Income 485 485 1,929 1,444 Other Revenues 2,500 2,500 2,309 (191) Total Revenues 22,985 22,985 24,238 1,253 EXPENDITURES Current: Parks: Contractual Services 14,000 14,000 2,288 (11,712) Commodities 600 600 - (600) Total Expenditures 14,600 14,600 2,288 (12,312) NET INCREASE (DECREASE) IN FUND BALANCE 8,385$ 8,385$ 21,950 13,565$ Fund balance - January 1 46,945 Fund balance - December 31 68,895$ 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, 2020 (95) Actual Variance with Original Final Amounts Final budget REVENUES Franchise Taxes 1,000,000$ 1,000,000$ 943,501$ (56,499)$ Investment Income 5,190 5,190 44,917 39,727 Other Revenues 7,000 7,000 1,500 (5,500) Total Revenues 1,012,190 1,012,190 989,918 (22,272) EXPENDITURES Current: Public Works: Personal Services 158,035 158,035 65,785 (92,250) Contractual Services 103,000 103,000 35,939 (67,061) Commodities - - 390 390 Internal Services 7,488 7,488 7,488 - Capital Outlay: Public Works 865,000 865,000 140,018 (724,982) Total Expenditures 1,133,523 1,133,523 249,620 (883,903) NET INCREASE (DECREASE) IN FUND BALANCE (121,333)$ (121,333)$ 740,298 861,631$ Fund Balance - January 1 1,053,089 FUND BALANCE - DECEMBER 31 1,793,387$ 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, 2020 (96) Actual Variance with Original Final Amounts Final budget REVENUES General Property Taxes 4,596,300.00 4,596,300.00 4,578,234$ (18,066)$ Special Assessments - - 191,881 191,881 Investment Income 8,000 8,000 - (8,000) Total Revenues 4,604,300 4,604,300 4,770,115 165,815 EXPENDITURES Debt Service 7,850,224 7,850,224 7,872,730 22,506 REVENUES OVER (UNDER) EXPENDITURES (3,245,924) (3,245,924) (3,102,615) 143,309 OTHER FINANCING SOURCES (USES) Transfers In 3,500,165 3,500,165 2,870,125 (630,040) Bonds Issued - - 1,617,800 1,617,800 Total Other Financing Sources (Uses) 3,500,165 3,500,165 4,487,925 987,760 NET INCREASE (DECREASE) IN FUND BALANCE 254,241$ 254,241$ 1,385,310 1,131,069$ Fund Balance - January 1 8,341,996 FUND BALANCE - DECEMBER 31 9,727,306$ Budgeted Amounts CITY OF EDINA, MINNESOTA GOVERNMENTAL FUND – CONSTRUCTION CAPITAL PROJECTS SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED DECEMBER 31, 2020 (97) Actual Variance with Original Final Amounts Final budget REVENUES General Property Taxes 2,830,000$ 2,830,000$ 2,817,514$ (12,486)$ Franchise Taxes 105,000 105,000 91,354 (13,646) Special Assessments 4,102,231 4,102,231 4,437,670 335,439 License and Permits 78,000 78,000 72,860 (5,140) Intergovernmental 2,460,960 2,460,960 5,022,639 2,561,679 Charges for Services 200,000 200,000 113,721 (86,279) Investment Income 225,000 225,000 695,025 470,025 Other Revenues - - 244,752 244,752 Total Revenues 10,001,191 10,001,191 13,495,535 3,494,344 EXPENDITURES Current: General Government: Personal Services - - 32,462 32,462 Contractual Services - - 316,847 316,847 Commodities - - 7,733 7,733 Public Safety: Commodities - - 13,837 13,837 Public Works: Personal Services 100,702 100,702 168,378 67,676 Contractual Services 294,826 294,826 329,798 34,972 Commodities 23,448 23,448 53,421 29,973 Internal Services 780 780 780 - Parks: Contractual Services - - 2,665 2,665 Capital Outlay: General Government 983,800 983,800 1,840,510 856,710 Public Safety 1,910,432 1,910,432 2,425,565 515,133 Public Works 8,930,298 8,930,298 4,892,957 (4,037,341) Parks 267,325 267,325 560,507 293,182 Total Expenditures 12,511,611 12,511,611 10,645,460 (1,866,151) REVENUES OVER (UNDER) EXPENDITURES (2,510,420) (2,510,420) 2,850,075 5,360,495 OTHER FINANCING SOURCES (USES) Transfers In 275,000 275,000 513,392 238,392 Transfers Out (3,500,165) (3,500,165) (6,214,942) (2,714,777) Sale of Capital Assets - - 151,595 151,595 Bonds Issued 3,659,279 3,659,279 373,200 (3,286,079) Premium on Bonds Issued - - 34,176 34,176 Total Other Financing Sources (Uses) 434,114 434,114 (5,142,579) (5,576,693) NET INCREASE (DECREASE) IN FUND BALANCE (2,076,306)$ (2,076,306)$ (2,292,504) (216,198)$ Fund Balance - January 1 21,927,249 FUND BALANCE - DECEMBER 31 19,634,745$ Budgeted Amounts (This page left blank intentionally.) 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, 2020 (98) Total Nonmajor Art Edinborough Centennial Sports Proprietary Center Park Lakes Dome Funds ASSETS Current Assets: Cash and Investments 48,777$ 1,150,298$ 461,245$ 1,077,226$ 2,737,546$ Interest Receivable 223 8,297 2,778 4,634 15,932 Accounts Receivable - 9,893 2,500 22,500 34,893 Inventory 3,447 - - - 3,447 Total Current Assets 52,447 1,168,488 466,523 1,104,360 2,791,818 Noncurrent Assets: Net Capital Assets 42,762 1,184,152 224,087 6,473,244 7,924,245 Total Assets 95,209 2,352,640 690,610 7,577,604 10,716,063 DEFERRED OUTFLOWS OF RESOURCES OPEB Deferred Outflows 532 3,455 2,457 - 6,444 Pension Deferred Outflows 31,588 47,383 31,588 15,795 126,354 Total Deferred Outflows of Resources 32,120 50,838 34,045 15,795 132,798 LIABILITIES Current Liabilities: Accounts Payable 253 11,329 9,756 202 21,540 Salaries Payable 4,872 25,989 22,226 6,822 59,909 Contracts payable - 20,842 - - 20,842 Due to Other Governments 3 6 - 100 109 Unearned Revenue 9,215 30 - 21,400 30,645 Compensated Absences Payable 1,774 15,572 37,998 - 55,344 Total Current Liabilities 16,117 73,768 69,980 28,524 188,389 Noncurrent Liabilities: Total OPEB Liability 12,768 14,428 12,496 - 39,692 Net Pension Liability 331,429 497,143 331,429 165,714 1,325,715 Compensated Absences Payable 5,154 25,186 76,894 - 107,234 Total Noncurrent Liabilities 349,351 536,757 420,819 165,714 1,472,641 Total Liabilities 365,468 610,525 490,799 194,238 1,661,030 DEFERRED INFLOWS OF RESOURCES OPEB Deferred Inflows 400 18,185 13,538 - 32,123 Pension Deferred Inflows 16,536 24,804 16,536 8,268 66,144 Total Deferred Inflows of Resources 16,936 42,989 30,074 8,268 98,267 NET POSITION Net Investment in Capital Assets 42,762 1,163,310 224,087 6,473,244 7,903,403 Unrestricted (297,837) 586,654 (20,305) 917,649 1,186,161 Total Net Position (255,075)$ 1,749,964$ 203,782$ 7,390,893$ 9,089,564$ CITY OF EDINA, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION NONMAJOR PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2020 (99) Total Nonmajor Art Edinborough Centennial Sports Proprietary Center Park Lakes Dome Funds OPERATING REVENUES Sales - Retail 8,609$ 534$ -$ -$ 9,143$ Sales - Concessions - 33,397 11,102 - 44,499 Memberships 3,369 35,687 - - 39,056 Admissions - 173,183 - 13,978 187,161 Lodging Tax - 1,751 - - 1,751 Building Rental - 81,317 - 297,863 379,180 Rental of Equipment - - 64,469 - 64,469 Greens Fees - - 163,129 - 163,129 Class Registration and Other Fees 30,593 181,125 361,595 37,359 610,672 Total Operating Revenues 42,571 506,994 600,295 349,200 1,499,060 OPERATING EXPENSES Cost of Sales and Services 1,063 18,649 5,455 - 25,167 Personal Services 210,170 659,027 663,327 91,424 1,623,948 Internal Services 38,572 266,326 190,415 73,680 568,993 Commodities 10,968 102,151 88,340 15,935 217,394 Internal Services 68,862 131,851 102,769 32,622 336,104 Depreciation 5,891 102,579 39,065 513,080 660,615 Total Operating Expenses 335,526 1,280,583 1,089,371 726,741 3,432,221 OPERATING INCOME (LOSS)(292,955) (773,589) (489,076) (377,541) (1,933,161) NONOPERATING REVENUES (EXPENSES) Intergovernmental - - 16,754 - 16,754 Investment Income (36) 48,201 17,240 32,738 98,143 Donations 13,714 - 13,000 - 26,714 Gain (Loss) on Sale of Capital Asset - 1,311 - - 1,311 Miscellaneous - 447 757 - 1,204 Total Nonoperating Revenues (Expenses)13,678 49,959 47,751 32,738 144,126 INCOME (LOSS) BEFORE TRANSFERS (279,277) (723,630) (441,325) (344,803) (1,789,035) TRANSFERS Transfers In 125,000 10,329 68,936 951 205,216 CHANGE IN NET POSITION (154,277) (713,301) (372,389) (343,852) (1,583,819) Net Position - January 1 (100,798) 2,463,265 576,171 7,734,745 10,673,383 NET POSITION - DECEMBER 31 (255,075)$ 1,749,964$ 203,782$ 7,390,893$ 9,089,564$ CITY OF EDINA, MINNESOTA COMBINING STATEMENT OF CASH FLOWS NONMAJOR PROPRIETARY FUNDS YEAR ENDED DECEMBER 31, 2020 (100) Total Nonmajor Art Edinborough Centennial Sports Proprietary Center Park Lakes Dome Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers and Users 42,571$ 515,080$ 625,382$ 368,994$ 1,552,027$ Payment to Suppliers (131,060) (533,132) (385,646) (138,542) (1,188,380) Payment to Employees (226,489) (677,181) (652,467) (94,643) (1,650,780) Net Cash Provided (Used) by Operating Activities (314,978) (695,233) (412,731) 135,809 (1,287,133) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES State Grant - - 16,754 - 16,754 Transfer from Other Funds 125,000 10,329 68,936 951 205,216 Miscellaneous Received 13,714 447 13,757 - 27,918 Net Cash Provided by Noncapital Financing Activities 138,714 10,776 99,447 951 249,888 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of Capital Assets - (492,830) - - (492,830) Receipts from the Sale of Capital Assets - 1,311 - - 1,311 Net Cash Used by Capital and Related Financing Activities - (491,519) - - (491,519) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received 323 47,824 16,810 30,916 95,873 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS (175,941) (1,128,152) (296,474) 167,676 (1,432,891) Cash and Investments - January 1 224,718 2,278,450 757,719 909,550 4,170,437 CASH AND INVESTMENTS - DECEMBER 31 48,777$ 1,150,298$ 461,245$ 1,077,226$ 2,737,546$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) (292,955)$ (773,589)$ (489,076)$ (377,541)$ (1,933,161)$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 5,891 102,579 39,065 513,080 660,615 (Increase) Decrease in: Receivables - 8,086 25,087 39,578 72,751 Inventory 1,063 - - - 1,063 Deferred Outflows of Resources (3,776) (7,523) (5,169) (1,889) (18,357) Increase (Decrease) in: Accounts Payable (11,854) (6,082) 2,836 (11,586) (26,686) Salaries Payable (5,512) (868) 3,635 3,432 687 Due to Other Governments (804) (8,073) (1,503) (4,719) (15,099) Unearned Revenue - - - (19,784) (19,784) Total OPEB Liability - (14,287) (10,716) - (25,003) Net Pension Liability 33,538 50,307 33,538 16,769 134,152 Compensated Absences 2,494 1,827 19,897 - 24,218 Deferred Inflows of Resources (43,063) (47,610) (30,325) (21,531) (142,529) Total Adjustments (22,023) 78,356 76,345 513,350 646,028 Net Cash Provided (Used) by Operating Activities (314,978)$ (695,233)$ (412,731)$ 135,809$ (1,287,133)$ NONCASH INVESTING ACTIVITIES Increase (Decrease) in Fair Value of Investments (630)$ 12,378$ 4,940$ 11,117$ 27,805$ FIDUCIARY FUNDS Custodial Funds Custodial 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. (This page left blank intentionally.) CITY OF EDINA, MINNESOTA COMBINING BALANCE SHEET AND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES CUSTODIAL FUNDS YEAR ENDED DECEMBER 31, 2020 (101) Public Safety Police Training Minnesota Seizure Facility Task Force 1 Total Cash and Investments 11,728$ 587,524$ (6,362)$ 592,890$ Accounts Receivable - 7,681 - 7,681 Due from Other Governmental Units - 23,769 77,503 101,272 Total Assets 11,728 618,974 71,141 701,843 Accounts Payable - 6,513 55,108 61,621 Salaries Payable - 9,026 1,484 10,510 Due to Other Governmental Units 11,747 135 - 11,882 Unearned Revenue - 5,163 - 5,163 11,747 20,837 56,592 89,176 Restricted for Organizations and Other Govermments (19)$ 598,137$ 14,549$ 612,667$ Public Safety Police Training Minnesota Seizure Facility Task Force 1 Total Collections on Behalf of Others 4$ 607,516$ 916,432$ 1,523,952$ Payments on Behalf of Others 23 512,003 910,957 1,422,983 Net Increase (Decrease) in Fiduciary Net Position (19) 95,513 5,475 100,969 Net Position-Beginning - 502,624 9,074 511,698 Net Position-Ending (19)$ 598,137$ 14,549$ 612,667$ ADDITIONS DEDUCTIONS ASSETS LIABILITIES NET POSITION CITY OF EDINA, MINNESOTA TAX CAPACITY, TAX LEVIES, AND TAX CAPACITY RATES (SHOWN BY YEAR OF TAX COLLECTIBILITY) (102) 2017 2018 2019 2020 2021 Total Tax Capacity 132,180,439$ 141,934,212$ 151,279,391$ 157,910,360$ 164,716,554$ Increment Valuation (3,474,097) (4,525,127) (5,229,452) (5,929,603) (8,291,891) Contribution to Fiscal Disparities Pool (11,851,919) (12,166,916) (13,440,625) (14,369,737) (15,151,282) Tax Capacity Used for Rate Calculation 116,854,423 125,242,169 132,609,314 137,611,020 141,273,381 Fiscal Disparities Distribution 2,901,964 3,210,559 3,473,642 3,700,282 4,049,317 Adjusted Net Tax Capacity 119,756,387$ 128,452,728$ 136,082,956$ 141,311,302$ 145,322,698$ Tax Levies: General Fund 26,860,319$ 28,493,077$ 30,009,121$ 32,021,243$ 33,986,471$ Arts and Culture Fund 20,000 20,000 20,000 20,000 20,000 Equipment 2,251,550 2,567,000 2,630,000 2,830,000 4,130,000 Debt Service 4,595,500 4,579,700 4,611,900 4,596,300 3,651,400 HRA Operating 95,000 125,000 160,000 192,000 230,400 Total Certified Tax Levies 33,822,369 35,784,777 37,431,021 39,659,543 42,018,271 Referendum Market Value Levy - - - - - Total Levy 33,822,369$ 35,784,777$ 37,431,021$ 39,659,543$ 42,018,271$ Tax Capacity Rate: General Fund Revenue 24.348% 24.187% 23.992% 24.690% 26.264% Bonds and Interest 3.841% 3.564% 3.388% 3.255% 2.515% HRA 0.082% 0.098% 0.119% 0.137% 16.000% Total Tax Capacity Rate 28.271% 27.849% 27.499% 28.082% 44.779% Market Value Rate 0.00000% 0.00000% 0.00000% 0.00000% 0.00000% CITY OF EDINA, MINNESOTA COMBINING SCHEDULE OF BONDED INDEBTEDNESS DECEMBER 31, 2020 (103) 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$ 6,530,000$ GO Capital Improvement Plan, Series 2013A - Refunding 3.00 - 3.50 10/10/13 02/01/30 5,710,000 1,745,000 GO Refunding, Series 2016A 2.00 - 3.00 07/06/16 02/01/28 3,635,000 580,000 GO Refunding, Series 2017C 2.05 - 4.00 12/14/17 02/01/29 8,955,000 630,000 GO Equipment Certificate, Series 2019A 5.00 06/13/19 02/01/29 2,805,000 - Total General Obligation Bonds 29,390,000 9,485,000 Permanent Improvement Revolving (PIR) Bonds: GO Permanent Improvement Revolving Series 2010B 2.00 - 3.00 11/18/10 02/01/22 2,305,000 1,560,000 GO Permanent Improvement Revolving Series 2011A 2.00 - 3.00 10/27/11 02/01/23 3,320,000 1,900,000 GO Permanent Improvement Revolving Series 2012A 3.00 - 4.00 11/15/12 02/01/29 2,675,000 750,000 GO Permanent Improvement Revolving Series 2013A 3.00 - 3.50 10/10/13 02/01/30 2,555,000 575,000 GO Permanent Improvement Revolving Series 2014B - Refunding 2.00 - 3.00 12/11/14 02/01/20 4,075,000 3,195,000 GO Permanent Improvement Revolving Series 2015A 2.00 - 4.00 07/09/15 02/01/32 6,545,000 720,000 GO Permanent Improvement Revolving Series 2015A - Parking 2.00 - 4.00 07/09/15 02/01/36 2,495,000 290,000 GO Permanent Improvement Revolving Series 2016A 2.00 - 3.00 07/06/16 02/01/33 3,940,000 215,000 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 2,195,000 - GO Permanent Improvement Revolving Series 2020A 2.00-4.00% 06/25/20 02/01/37 - - GO Permanent Improvement Revolving Series 2020B - Refunding 1.09%12/30/20 02/01/29 - - Total PIR Bonds 34,310,000 9,205,000 Public Project Revenue Bonds: Taxable Public Project Revenue, Series 2009A 2.10 - 4.55 11/24/09 02/01/30 2,595,000 1,200,000 HRA Public Project Revenue, Series 2014A 2.00 - 3.625 07/15/14 02/01/35 16,155,000 2,540,000 HRA Public Project Revenue, Series 2015A -Refunding 2.50 - 3.00 07/09/15 05/01/26 3,490,000 1,140,000 Total Public Project Revenue Bonds 22,240,000 4,880,000 Revenue Bonds: Recreational Facility Bonds, Series 2012B .45 - 1.60 11/15/12 02/01/20 815,000 740,000 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 1,125,000 315,000 Recreational Facility Bonds, Series 2015B 2.00 - 3.25 07/09/15 02/01/31 2,140,000 365,000 Recreational Facility Bonds, Series 2017B 3.00 - 4.00 06/29/17 02/01/33 7,425,000 480,000 Recreational Facility Bonds, Series 2017D - Refunding 2.00 12/20/17 02/01/30 1,640,000 181,000 Utility Revenue Bonds, Series 2011A 2.00 - 3.00 10/27/11 02/01/22 11,230,000 7,575,000 Utility Revenue Bonds, Series 2012A 3.00 - 4.00 11/15/12 02/01/23 6,100,000 3,375,000 Utility Revenue Bonds, Series 2014A 2.00 - 3.00 07/15/14 02/01/24 5,680,000 2,710,000 Utility Revenue Bonds, Series 2015A 2.00 - 4.00 07/09/15 02/01/25 5,235,000 1,980,000 Utility Revenue Bonds, Series 2016A 2.00 - 3.00 07/06/16 02/01/27 8,775,000 1,560,000 Utility Revenue Bonds, Series 2017A 3.00 - 4.00 06/29/17 02/01/28 6,595,000 550,000 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 5,815,000 - Utility Revenue Bonds, Series 2020A 2.00-4.00% 06/25/20 02/01/31 - - Utility Revenue Bonds, Series 2020B - Refunding 1.09% 12/30/20 02/01/23 - - Total Public Project Revenue Bonds 67,980,000 19,831,000 Total - Bonded indebtedness 153,920,000$ 43,401,000$ Prior Years CITY OF EDINA, MINNESOTA COMBINING SCHEDULE OF BONDED INDEBTEDNESS (CONTINUED) DECEMBER 31, 2020 (104) Principal Interest Interest Outstanding Payable Due Due Payable 12/31/2019 Issued Payments 12/31/2020 In 2021 In 2021 to Maturity 1,755,000$ -$ 860,000$ 895,000$ 895,000$ 17,900$ 17,900$ 3,965,000 - 315,000 3,650,000 320,000 103,425 586,587 3,055,000 - 305,000 2,750,000 310,000 67,950 285,175 8,325,000 - 700,000 7,625,000 725,000 238,550 1,056,103 2,805,000 - - 2,805,000 255,000 133,875 676,875 19,905,000 - 2,180,000 17,725,000 2,505,000 561,700 2,622,640 745,000 - 240,000 505,000 250,000 11,400 15,225 1,420,000 - 340,000 1,080,000 350,000 27,150 49,200 1,925,000 - 165,000 1,760,000 1,760,000 26,400 247,200 1,980,000 - 155,000 1,825,000 160,000 51,700 292,875 880,000 - 880,000 - - - - 5,825,000 - 370,000 5,455,000 380,000 177,075 1,163,063 2,205,000 - 100,000 2,105,000 100,000 71,250 643,100 3,725,000 - 220,000 3,505,000 230,000 93,050 666,700 1,995,000 - 100,000 1,895,000 105,000 61,800 450,500 2,210,000 - - 2,210,000 115,000 69,119 564,865 2,195,000 - - 2,195,000 - 88,850 745,525 - 390,000 - 390,000 - 11,550 93,600 - 1,601,000 - 1,601,000 96,000 9,428 76,527 25,105,000 1,991,000 2,570,000 24,526,000 3,546,000 698,772 5,008,380 1,395,000 - 130,000 1,265,000 135,000 50,205 226,976 13,615,000 - 680,000 12,935,000 695,000 402,444 3,508,534 2,350,000 - 305,000 2,045,000 315,000 53,000 171,512 17,360,000 - 1,115,000 16,245,000 1,145,000 505,649 3,907,022 75,000 - 75,000 - - - - 2,100,000 - 60,000 2,040,000 135,000 49,969 365,228 810,000 - 70,000 740,000 75,000 22,290 113,557 1,775,000 - 125,000 1,650,000 130,000 47,544 293,303 6,945,000 - 420,000 6,525,000 440,000 230,900 1,514,850 1,459,000 - 126,000 1,333,000 129,000 26,020 137,300 3,655,000 - 1,185,000 2,470,000 1,215,000 55,875 74,700 2,725,000 - 655,000 2,070,000 2,070,000 31,050 94,350 2,970,000 - 560,000 2,410,000 580,000 57,650 138,075 3,255,000 - 510,000 2,745,000 515,000 88,450 250,400 7,215,000 - 815,000 6,400,000 840,000 157,862 577,993 6,045,000 - 570,000 5,475,000 595,000 191,800 813,050 3,305,000 - 285,000 3,020,000 290,000 96,600 485,925 5,815,000 - - 5,815,000 465,000 279,125 1,570,125 - 4,830,000 - 4,830,000 - 176,550 922,600 - 1,414,000 - 1,414,000 350,000 9,034 20,658 48,149,000 6,244,000 5,456,000 48,937,000 7,829,000 1,520,719 7,372,114 110,519,000$ 8,235,000$ 11,321,000$ 107,433,000$ 15,025,000$ 3,286,840$ 18,910,156$ 2020 CITY OF EDINA, MINNESOTA SCHEDULE OF BALANCE SHEET ACCOUNTS TAX INCREMENT FINANCING DISTRICTS DECEMBER 31, 2020 (105) 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 1,219,601$ 342,900$ 12,331,350$ 693,709$ 495,970$ 23,212$ 52,019$ (177,429)$ 14,981,332$ Accrued Interest 2,061 1,579 49,057 2,390 2,102 96 69 - 57,354 Accounts Receivable - - - - - - - 188,522 188,522 Loans Receivable - - 3,650,000 - - - - - 3,650,000 Due from Other Districts 6,125,000 - 275,000 - - - - - 6,400,000 Due from Other Governments - - 23,272 - - - - - 23,272 Total Assets7,346,662$ 344,479$ 16,328,679$ 696,099$ 498,072$ 23,308$ 52,088$ 11,093$ 25,300,480$ LIABILITIESAccounts Payable -$ -$ 9,298$ 1,024$ 17,886$ 539$ 1,935$ 11,093$ 41,775$ Salaries Payable 1,485 - - - - - 469 - 1,954 Due to Other Districts - - 1,475,000 - 500,000 275,000 4,150,000 - 6,400,000 Unearned Revenue 13,000 - - - - - - - 13,000 Total Liabilities 14,485 - 1,484,298 1,024 517,886 275,539 4,152,404 11,093 6,456,729 FUND BALANCERestricted 7,332,177 344,479 14,844,381 695,075 (19,814) (252,231) (4,100,316) - 18,843,751 Total Liabilities andFund Balance 7,346,662$ 344,479$ 16,328,679$ 696,099$ 498,072$ 23,308$ 52,088$ 11,093$ 25,300,480$ CITY OF EDINA, MINNESOTA SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TAX INCREMENT FINANCING DISTRICTS YEAR ENDED DECEMBER 31, 2020 (106) Total TaxCentennial Valley View Southdale 2 Pentagon Park Grandview 2 66th West 50th and France West 76th Street IncrementDistrict District District District DistrictDistrict France 2 District District FinancingNo. 1203 No. 1207 No. 1208 No. 1211 No. 1211 No. 1214 No. 1215 No. 1217 DistrictsREVENUESTax Increment Collections -$ -$ 5,826,266$ 380,452$ 183,889$ 2,736$ 59,476$ -$ 6,452,819$ Other Fees 29,492 - - - - - - 517 30,009 Investment Income 19,070 7,800 325,140 19,807 14,646 876 643 - 387,982 Other Revenues 100,000 - 598,409 - - - - - 698,409 Total Revenues 148,562 7,800 6,749,815 400,259 198,535 3,612 60,119 517 7,569,219 EXPENDITURESCurrent:General Government 46,568 - 147,081 28,182 21,726 1,078 10,435 - 255,070 Capital Outlay:General Government 33,490 - 1,303,949 - 115,615 - - - 1,453,054 Total Expenditures 80,058 - 1,451,030 28,182 137,341 1,078 10,435 - 1,708,124 REVENUES OVER (UNDER)EXPENDITURES68,504 7,800 5,298,785 372,077 61,194 2,534 49,684 517 5,861,095 OTHER FINANCING SOURCES (USES)Interfund Loan Interest 86,000 - (86,000) - - - - - - NET INCREASE (DECREASE) IN FUND BALANCE154,504 7,800 5,212,785 372,077 61,194 2,534 49,684 517 5,861,095 Fund Balance - January 1 7,177,673 336,679 9,631,596 322,998 (81,008) (254,765) (4,150,000) (517) 12,982,656 FUND BALANCE - DECEMBER 317,332,177$ 344,479$ 14,844,381$ 695,075$ (19,814)$ (252,231)$ (4,100,316)$ -$ 18,843,751$ 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 107 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 115 These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. Debt Capacity 119 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 124 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 126 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. CITY OF EDINA, MINNESOTA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (107) 2011 2012 2013a 2014 GOVERNMENTAL ACTIVITIES Net Investment in Capital Assets 75,045,018$ 78,644,392$ 83,842,970$ 85,708,114$ Restricted 22,915,776 23,215,910 20,289,579 18,268,724 Unrestricted 29,544,149 29,587,700 33,242,317 31,316,605 Total Governmental Activities Net Position 127,504,943$ 131,448,002$ 137,374,866$ 135,293,443$ BUSINESS-TYPE ACTIVITIES Net Investment in Capital Assets 56,877,100$ 63,766,144$ 66,126,387$ 75,803,672$ Restricted 623,099 876,909 611,377 619,295 Unrestricted 12,926,674 14,390,609 16,867,459 21,176,026 Total Business-Type Activities Net Position 70,426,873$ 79,033,662$ 83,605,223$ 97,598,993$ PRIMARY GOVERNMENT Net Investment in Capital Assets 131,922,118$ 142,410,536$ 149,969,357$ 161,511,786$ Restricted 23,538,875 24,092,819 20,900,956 18,888,019 Unrestricted 42,470,823 43,978,309 50,109,776 52,492,631 Total Primary Government Net Position 197,931,816$ 210,481,664$ 220,980,089$ 232,892,436$ 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) (108) 2015b 2016 2017 2018c 2019 2020 85,838,618$ 93,247,973$ 96,149,011$ 107,133,225$ 110,670,335$ 117,052,475$ 16,925,171 20,892,680 22,840,869 25,017,586 36,999,647 60,063,244 21,957,830 22,146,168 26,412,441 31,277,308 27,680,337 16,475,796 124,721,619$ 136,286,821$ 145,402,321$ 163,428,119$ 175,350,319$ 193,591,515$ 83,395,794$ 85,158,869$ 82,338,560$ 81,980,815$ 80,452,583$ 81,135,647$ 793,664 804,393 1,338,276 1,360,336 1,360,336 1,268,479 16,405,405 17,300,872 22,443,806 27,285,949 32,045,171 33,086,023 100,594,863$ 103,264,134$ 106,120,642$ 110,627,100$ 113,858,090$ 115,490,149$ 169,234,412$ 178,406,842$ 178,487,571$ 189,114,040$ 191,122,918$ 198,188,122$ 17,718,835 21,697,073 24,179,145 26,377,922 38,359,983 61,331,723 38,363,235 39,447,040 48,856,247 58,563,257 59,725,508 49,561,819 225,316,482$ 239,550,955$ 251,522,963$ 274,055,219$ 289,208,409$ 309,081,664$ Fiscal Year CITY OF EDINA, MINNESOTA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (109) 2011 2012 2013a 2014b EXPENSES Governmental Activities: General Government 7,013,231$ 12,598,979$ 8,256,261$ 8,522,319$ Public Safety 16,024,575 16,598,423 17,117,693 18,145,498 Public Works 9,193,336 9,437,285 11,502,250 15,553,852 Parks 5,540,585 5,904,724 6,132,709 3,330,781 Interest on Long-Term Debt 2,339,370 2,222,392 2,024,749 1,989,863 Total Governmental Activities Expenses 40,111,097 46,761,803 45,033,662 47,542,313 Business-Type Activities: Water 12,130,685 12,610,875 13,748,186 14,207,197 Sewer - - - - Stormwater - - - - Recycling - - - - Liquor 11,727,106 11,740,744 12,261,413 12,393,218 Aquatic Center 718,027 866,944 822,932 827,485 Golf Course 3,390,949 3,293,192 3,199,815 3,342,544 Arena 1,689,001 2,182,200 2,272,510 2,375,173 Community Activity Centers 2,998,915 2,842,139 2,967,115 2,975,782 Total Business-Type Activities Expenses 32,654,683 33,536,094 35,271,971 36,121,399 Total Primary Government Expenses 72,765,780$ 80,297,897$ 80,305,633$ 83,663,712$ PROGRAM REVENUES Governmental Activities: Charges for Services: General Government 969,745$ 1,142,984$ 1,259,908$ 1,529,555$ Public Safety 5,988,485 6,549,929 7,410,755 8,102,352 Other Activities 775,676 913,864 846,999 960,261 Operating Grants and Contributions 1,392,892 1,685,026 2,283,007 1,578,538 Capital Grants and Contributions 5,770,912 9,137,011 6,372,735 8,244,695 Total Governmental Activities Program Revenues 14,897,710 19,428,814 18,173,404 20,415,401 Business-Type Activities: Charges for Services: Water 15,873,937 17,729,589 17,831,225 17,550,802 Sewer - - - - Stormwater - - - - Recycling - - - - Liquor 13,172,484 13,230,941 13,711,557 13,515,168 Aquatic Center 913,383 1,001,946 928,055 918,412 Golf Course 3,285,741 3,225,591 2,711,743 3,229,348 Arena 1,315,435 1,452,435 1,942,971 2,092,567 Community Activity Centers 2,331,136 2,399,090 2,625,633 2,583,257 Operating Grants and Contributions 135,428 1,042,195 516,242 428,416 Capital Grants and Contributions - - - - Total Business-Type Activities Program Revenues 37,027,544 40,081,787 40,267,426 40,317,970 Total Primary Government Program Revenues 51,925,254$ 59,510,601$ 58,440,830$ 60,733,371$ NET (EXPENSE) REVENUEGovernmental Activities (25,213,387)$ (27,332,989)$ (26,860,258)$ (27,126,912)$ Business-Type Activities 4,372,861 6,545,693 4,995,455 4,196,571 Total Primary Government Net Expense (20,840,526)$ (20,787,296)$ (21,864,803)$ (22,930,341)$ GENERAL REVENUES AND OTHER CHANGES IN NET POSITION Governmental Activities: Property Taxes 25,040,871$ 25,884,662$ 26,894,161$ 27,062,224$ Tax Increment Collections 4,083,345 3,536,935 3,981,938 5,052,705 Franchise Taxes 722,160 815,530 1,891,967 2,055,396 Lodging Taxes - - - 11,301 Unrestricted Investment Earnings601,250 341,986 (96,390) 440,051 Gain on Disposal of Capital Assets 131,365 - 16,654 29,037 Insurance Recovery - - 816,654 - Transfers 694,206 696,935 133,907 (9,605,225) Total Governmental Activities 31,273,197 31,276,048 33,638,891 25,045,489 Business-Type Activities: Unrestricted Investment Earnings280,438 113,177 (77,848) 191,974 Gain (Loss) on Disposal of Capital Assets - 2,644,854 17,587 - Transfers (694,206) (696,935) (133,907) 9,605,225 Total Business-Type Activities (413,768) 2,061,096 (194,168) 9,797,199 Total Primary Government 30,859,429$ 33,337,144$ 33,444,723$ 34,842,688$ CHANGE IN NET POSITION Governmental Activities 6,059,810$ 3,943,059$ 6,778,633$ (2,081,423)$ Business-Type Activities 3,959,093 8,606,789 4,801,287 13,993,770 Total Primary Government 10,018,903$ 12,549,848$ 11,579,920$ 11,912,347$ 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. e The City broke out the various functions within the utilities fund for the first time in 2020. Prior year information has not been restated. Fiscal Year CITY OF EDINA, MINNESOTA CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) (110) 2015c 2016 2017 2018d 2019 2020e 8,518,236$ 9,587,567$ 9,164,272$ 10,964,266$ 11,252,538$ 11,698,533$ 19,507,770 20,243,209 21,815,101 20,971,184 27,496,563 27,058,719 15,284,777 19,444,472 17,750,505 14,170,463 10,979,180 16,117,060 3,385,367 3,822,716 4,222,431 7,235,405 7,554,919 6,798,866 2,180,678 2,133,474 1,996,354 1,726,901 1,999,318 1,561,462 48,876,828 55,231,438 54,948,663 55,068,219 59,282,518 63,234,640 14,963,304 16,780,474 17,361,659 18,045,516 19,303,212 9,592,913 - - - - - 7,641,660 - - - - - 3,424,049 - - - - - 1,392,003 11,818,602 12,130,254 12,007,885 11,995,159 11,970,986 11,500,971 872,960 915,560 1,015,328 996,671 979,376 386,026 3,409,343 3,041,169 3,469,121 2,464,563 4,009,097 4,257,484 2,642,097 2,842,660 2,961,787 2,996,844 2,982,674 2,876,897 3,436,325 3,853,091 4,095,309 4,096,452 4,286,773 3,412,784 37,142,631 39,563,208 40,911,089 40,595,205 43,532,118 44,484,787 86,019,459$ 94,794,646$ 95,859,752$ 95,663,424$ 102,814,636$ 107,719,427$ 1,322,430$ 1,453,009$ 1,142,120$ 2,395,535$ 1,204,947$ 4,172,729$ 8,683,465 8,996,046 9,627,122 9,978,816 9,747,031 10,152,772 1,158,207 1,289,770 1,288,452 1,202,732 1,265,918 1,007,903 3,122,178 2,751,495 2,194,336 4,028,247 4,271,243 7,626,236 10,044,077 15,252,861 9,775,184 6,695,172 6,625,040 7,318,687 24,330,357 29,743,181 24,027,214 24,300,502 23,114,179 30,278,327 19,335,443 19,505,905 21,361,972 22,697,468 21,875,655 9,236,665 - - - - - 10,622,411 - - - - - 4,773,432 - - - - - 1,148,338 12,462,387 12,937,092 12,991,764 13,401,754 13,094,407 12,117,414 971,936 956,068 962,857 997,727 996,778 - 2,857,190 2,809,702 1,254,412 1,396,173 3,395,815 3,968,529 2,316,853 2,314,892 2,508,192 2,629,945 2,516,629 1,638,011 3,119,789 3,190,775 3,348,628 3,303,278 3,240,000 1,499,060 595,141 445,464 179,086 545,682 44,953 47,780 - - 904,201 - 692,281 396,103 41,658,739 42,159,898 43,511,112 44,972,027 45,856,518 45,447,743 65,989,096$ 71,903,079$ 67,538,326$ 69,272,529$ 68,970,697$ 75,726,070$ (24,546,471)$ (25,488,257)$ (30,921,449)$ (30,767,717)$ (36,168,339)$ (32,956,313)$ 4,516,108 2,596,690 2,600,023 4,376,822 2,324,400 962,956 (20,030,363)$ (22,891,567)$ (28,321,426)$ (26,390,895)$ (33,843,939)$ (31,993,357)$ 29,632,072$ 31,396,421$ 33,665,029$ 35,616,432$ 37,133,269$ 39,545,279$ 1,792,896 2,779,097 3,422,898 4,997,706 5,447,108 6,452,819 2,089,038 2,346,423 2,408,884 2,559,443 2,881,726 3,071,392 22,716 22,624 21,006 25,298 24,119 8,313 195,620 344,277 514,073 901,405 2,037,306 1,835,870 41,900 65,044 - 5,032,815 408,659 - - - - - - - (2,230,966) 99,573 5,059 305,428 158,352 283,836 31,543,276 37,053,459 40,036,949 49,438,527 48,090,539 51,197,509 91,907 136,208 254,990 481,754 1,064,942 945,580 39,427 35,946 6,554 - - 7,359 2,230,966 (99,573) (5,059) (305,428) (158,352) (283,836) 2,362,300 72,581 256,485 176,326 906,590 669,103 33,905,576$ 37,126,040$ 40,293,434$ 49,614,853$ 48,997,129$ 51,866,612$ 6,996,805$ 11,565,202$ 9,115,500$ 18,670,810$ 11,922,200$ 18,241,196$ 6,878,408 2,669,271 2,856,508 4,553,148 3,230,990 1,632,059 13,875,213$ 14,234,473$ 11,972,008$ 23,223,958$ 15,153,190$ 19,873,255$ Fiscal Year CITY OF EDINA, MINNESOTA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (111) 2011 2012 2013 2014 a GENERAL FUND Nonspendable 10,871$ 413,200$ 13,322$ 240,291$ Restricted 178,295 880,395 185,395 757,673 Assigned 1,539,286 1,643,077 1,559,461 1,566,329 Unassigned 11,744,764 11,902,462 12,573,457 11,429,444 Total General Fund 13,473,216$ 14,839,134$ 14,331,635$ 13,993,737$ ALL OTHER GOVERNMENTAL FUNDS Restricted, Reported in: Special Revenue Funds 17,178,857$ 13,185,962$ 13,040,516$ 9,719,309$ Debt Service Funds 8,068,183 9,704,408 6,246,769 12,678,291 Construction Funds 2,087,548 2,759,463 3,318,947 6,598,832 Assigned, Reported in: Capital Projects Funds 8,098,935 7,159,890 8,354,268 7,046,610 Unassigned, Reported in: Special Revenue Funds - - - - Total all Other Governmental Funds 35,433,523$ 32,809,723$ 30,960,500$ 36,043,042$ a 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) (112) 2015 2016 a 2017a 2018 2019 2020 529,513$ 27,643$ 13,124$ -$ 28,403$ 28,403$ 417,673 927,673 961,133 961,133 58,086 58,086 1,547,398 1,612,240 1,739,079 2,105,741 2,093,760 6,679,877 11,825,799 14,624,755 15,656,518 16,812,851 16,411,412 20,476,747 14,320,383$ 17,192,311$ 18,369,854$ 19,879,725$ 18,591,661$ 27,243,113$ 9,405,757$ 12,673,995$ 14,453,556$ 14,755,259$ 18,653,029$ 26,862,127$ 7,134,575 11,187,468 17,000,806 7,871,858 8,341,996 9,727,306 551,132 209,510 78,702 30,072 - - 13,127,881 13,109,438 15,710,621 19,726,343 21,927,249 19,634,745 - (190,845) - - - (50,610) 30,219,345$ 36,989,566$ 47,243,685$ 42,383,532$ 48,922,274$ 56,173,568$ Fiscal Year CITY OF EDINA, MINNESOTA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (113) 2011 2012 2013 2014 REVENUES General Property Taxes 24,972,166$ 25,838,422$ 26,891,756$ 26,988,493$ Tax Increment Collections 4,083,345 3,536,935 3,981,938 5,052,705 Franchise Taxes 722,160 815,530 1,891,967 2,055,396 Lodging Fees - - - 11,301 Special Assessments 4,502,112 4,975,641 4,884,510 4,606,010 License and Permits 2,724,763 3,155,351 4,150,512 4,583,183 Intergovernmental 3,059,964 2,032,966 2,509,166 3,961,509 Charges for Services 3,181,961 3,708,482 3,667,612 4,270,720 Fines and Forfeitures 1,243,426 1,195,054 1,109,710 1,163,907 Investment Income 601,250 341,986 (96,390) 440,051 Rental of Property 539,091 506,276 518,862 546,874 Parkland Dedication - 702,100 - 757,278 Other Revenues 156,231 240,841 278,607 78,775 Total Revenues 45,786,469 47,049,584 49,788,250 54,516,202 EXPENDITURES General Government 5,739,481 6,624,573 7,351,556 7,625,826 Public Safety 14,668,772 14,985,068 15,859,622 16,647,821 Public Works 6,000,539 6,277,506 7,018,614 10,201,335 Parks 3,633,922 3,852,260 3,915,568 1,341,884 Capital Outlay 14,235,496 13,622,443 10,690,207 19,883,144 Debt Service: Principal 4,480,000 6,620,000 14,531,375 4,096,375 Interest and Other Charges 2,278,068 2,292,394 2,270,259 1,923,647 Total Expenditures 51,036,278 54,274,244 61,637,201 61,720,032 REVENUES OVER (UNDER) EXPENDITURES (5,249,809) (7,224,660) (11,848,951) (7,203,830) OTHER FINANCING SOURCES (USES) Utility Contributions from Other Funds - - - - Transfers In 5,615,669 4,495,940 3,472,964 1,404,975 Transfers Out (4,921,463) (3,799,005) (3,339,057) (11,010,200) Sale of Capital Assets 209,773 94,975 61,642 70,603 Insurance Recovery - - 816,654 - Loans Issued - - - - Bonds Issued 3,320,000 2,748,720 2,555,000 16,155,000 Refunding Bonds Issued - 1,990,000 5,710,000 5,180,000 Premium on Bonds Issued 108,097 436,148 275,360 327,987 Discount on Bonds Issued - - (60,334) (179,891) Payment to Refunding Escrow - - - - Total Other Financing Sources (Uses)4,332,076 5,966,778 9,492,229 11,948,474 NET CHANGE IN FUND BALANCES (917,733)$ (1,257,882)$ (2,356,722)$ 4,744,644$ Debt Service as a Percentage of Noncapital Expenditures 17.8% 19.4% 32.2% 13.7% Fiscal Year CITY OF EDINA, MINNESOTA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED) LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (114) 2015 2016 2017 2018 2019 2020 29,535,270$ 31,354,023$ 33,696,550$ 35,613,883$ 37,093,074$ 39,509,239$ 1,792,896 2,779,097 3,422,898 4,997,706 5,447,108 6,452,819 2,089,038 2,346,423 2,408,884 2,559,443 2,881,726 3,071,392 22,716 22,624 21,006 25,298 24,119 8,313 4,132,128 5,276,194 5,330,766 4,747,205 4,741,557 4,629,551 4,907,364 5,268,519 5,403,222 5,912,757 5,183,754 6,454,749 6,093,966 5,775,114 3,687,262 5,124,573 3,687,620 11,218,739 4,414,991 4,689,389 4,917,173 4,898,548 5,431,941 4,968,288 1,195,271 1,016,817 1,135,986 1,122,426 1,097,122 485,472 195,314 344,344 512,448 889,550 1,989,881 1,835,870 416,522 514,955 459,099 632,011 487,797 479,148 800,000 1,250,000 33,460 - - - 361,425 2,599,830 761,281 990,277 600,905 3,069,269 55,956,901 63,237,329 61,790,035 67,513,677 68,666,604 82,182,849 6,337,944 6,815,725 7,065,729 8,630,290 8,973,194 8,577,452 17,537,528 18,554,507 19,233,386 20,323,076 21,701,254 25,612,596 10,578,472 10,474,008 11,524,896 8,682,928 8,998,768 8,843,557 1,416,858 1,529,384 1,695,397 5,202,962 5,453,778 4,878,372 19,912,565 16,787,575 11,053,212 19,752,836 18,558,023 13,056,078 13,276,375 5,246,375 5,496,375 5,523,369 5,778,476 5,865,000 2,375,613 2,360,827 2,359,551 2,099,594 1,923,526 2,007,730 71,435,355 61,768,401 58,428,546 70,215,055 71,387,019 68,840,785 (15,478,454) 1,468,928 3,361,489 (2,701,378) (2,720,415) 13,342,064 - - - 37,978 115,494 - 3,232,770 3,504,542 5,130,405 5,464,771 6,738,864 6,260,386 (6,472,066) (3,404,969) (5,057,263) (5,139,771) (6,604,736) (5,976,550) 78,509 65,044 84,388 6,201,630 1,172,391 251,670 167,167 - - - - - - - - - 750,000 - 9,040,000 3,940,000 1,995,000 2,210,000 5,000,000 1,991,000 3,490,000 3,635,000 8,955,000 - - - 492,838 450,409 798,791 74,787 799,080 34,176 (47,815) (16,805) (51,148) (18,299) - - - - (3,785,000) (9,480,000) - - 9,981,403 8,173,221 8,070,173 (648,904) 7,971,093 2,560,682 (5,497,051)$ 9,642,149$ 11,431,662$ (3,350,282)$ 5,250,678$ 15,902,746$ 28.9% 16.2% 15.9% 14.6% 13.8% 13.2% Fiscal Year CITY OF EDINA, MINNESOTA ASSESSED VALUE, ACTUAL VALUE, AND TAX CAPACITY OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (115) City Tax City Used Adjusted Capacity Referendum Estimated Limited Taxable Total for Rate Net Rate Rate 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 12,879,164 12,879,164 12,785,798 157,910 137,611 141,311 28.082% 0.00000% 3.081 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. 2020 Estimated Rate b Market Value (In Thousands) a Tax Capacity (In Thousands) 2015 Fiscal Direct 2013 2014 2011 2012 2019 2018 Year 2016 2017 CITY OF EDINA, MINNESOTA DIRECT AND OVERLAPPING TAX CAPACITY RATES LAST TEN FISCAL YEARS (116) Total Basic Debt HRA Total Tax Direct and Rate Rate Rate Capacity RMV Hennepin Tax Cap. RMV Other Overlap 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% 24.690% 3.255% 0.137% 28.082% 0.000% 41.084% 30.589% 0.219% 9.330% 109.085% 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. 2020 2019 City Rates Overlapping Rates ISD #273 EdinaFiscal Year 2018 2013 2014 2011 2012 2015 2016 2017 CITY OF EDINA, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (117) Percentage Percentage of Total of Total Tax Capacity Rank Capacity Tax Capacity Rank Capacity Southdale Shopping Center 2,895,286$ 1 1.83% 2,308,500$ 1 2.03% Galleria Shopping Center 2,759,505 2 1.75% 1,188,800 2 1.04% Southdale Medical Building 1,560,070 3 0.99% 620,285 5 0.54% Centennial Lakes Retail 1,193,162 4 0.76% 679,250 4 0.60% Southdale Office Center 1,044,838 5 0.66% 686,102 3 0.60% Onyx Apartments 865,110 6 0.55% DNA DNA DNA Centennial Lakes Phase V 810,668 7 0.51% 571,370 6 0.50% Centennial Lakes Phase IV 804,370 8 0.51% 560,290 7 0.49% Loden Apartments 757,296 9 0.48% DNA DNA DNA Lifetime Fitness/Lifetime Works 745,564 10 0.47% DNA DNA DNA National Car DNA DNA DNA 536,870 8 0.47% Target DNA DNA DNA 439,250 9 0.39% Hellmuth & Johnson DNA DNA DNA 397,956 10 0.35% Totals 13,435,869$ 8.51% 7,988,673$ 7.01% Source: City of Edina Assessing Office DNA: Data is not available 20112020 Taxpayer CITY OF EDINA, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (118) Total Collections in Tax Percentage Subsequent Percentage Levy Amount of Levy Years Amount of Levy 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% (80,678) 29,416,684 99.05% 31,799,123 31,383,415 98.69% 45,132 31,428,547 98.83% 33,822,369 33,645,085 99.48% (56,896) 33,588,189 99.31% 35,784,777 35,551,096 99.35% (33,548) 35,517,548 99.25% 37,431,021 37,104,274 99.13% 62,960 37,167,234 99.30% 39,659,543 39,392,703 99.33% - 39,392,703 99.33% Source: Hennepin County Taxpayer Services. Total Collections to Date Taxes Payable 2013 2014 2020 Collected within the Fiscal Year of the Levy 2012 2011 2019 2018 2016 2015 2017 CITY OF EDINA, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (DOLLARS IN THOUSANDS, EXCEPT PER CAPITA) (119) General Public Tax Permanent EEEP Rec. Utility Total Percentage Obligation Project Increment Improvement Revenue Notes Facility Revenue Primary of Personal Per Debt Revenue Bonds Revolving Bonds Payable Bonds Bonds Government Income a Capita a 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 - 750 12,423 39,230 117,432 3.16% 2,205 18,917 16,363 - 25,559 - 750 12,945 39,618 114,152 2.79% 2,143 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 123. 2020 2019 Business-Type Activities Year Fiscal 2018 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) (120) General Obligation Less: Amounts Available Percentage of Debt a in Debt Service Fund b Total Property Value c Per Capita d 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 18,917 9,727 9,190 0.07% 173 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 123. 2020 2019 Year Fiscal 2013 2018 2016 2015 2014 2011 2012 2017 CITY OF EDINA, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2020 (121) Net General Percentage Obligation Bonded Applicable City Share Debt Outstanding in City a of Debt Overlapping Debt: Hennepin County 998,790,298$ 6.79% 67,817,861$ Hennepin Suburban Park District 42,954,642 9.76% 4,192,373 Hennepin Regional Rail Authority 93,859,422 6.79% 6,373,055 School Districts: ISD No. 273 (Edina) 178,548,040 98.63% 176,101,931 ISD No. 270 (Hopkins) 194,315,000 7.82% 15,195,433 ISD No. 271 (Bloomington) 150,284,959 0.02% 30,057 ISD No. 272 (Eden Prairie) 95,033,468 1.04% 988,348 ISD No. 280 (Richfield) 133,027,413 28.63% 38,085,748 ISD No. 283 (St. Louis Park) 131,029,599 0.01% 13,103 Metro Council 103,225,628 3.22% 3,323,865 Total Overlapping Debt 2,121,068,469 312,121,774 City of Edina 61,589,682 100.00% 61,589,682 Total Overlapping and Direct Debt 2,182,658,151$ 373,711,456$ Ratio of Debt Per Capita (53,268 Population) 7,016$ Ratio of Debt to Estimated Market Valuation of $12,879,164,400 2.90% Source: Hennepin County Taxpayer Services a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages were estimated by determining the portion of another governmental unit's tax capacity that is within the City's boundaries and dividing it by each unit's total tax capacity. Direct Debt: Debt Ratios: CITY OF EDINA, MINNESOTA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (DOLLARS IN THOUSANDS) (122) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Debt Limit 282,958$ 270,767$ 263,958$ 267,351$ 291,050$ 308,890$ 323,556$ 346,426$ 368,150$ 383,574$ Total Net Debt Applicable to Limit 42,860 39,545 37,030 51,760 48,000 48,325 50,115 37,595 37,265 33,970 Legal Debt Margin 240,098$ 231,222$ 226,928$ 215,591$ 243,050$ 260,565$ 273,441$ 308,831$ 330,885$ 349,604$ Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 15.15% 14.60% 14.03% 19.36% 16.49% 15.64% 15.49% 10.85% 10.12% 8.86% Market Value (After Fiscal Disparities) 12,785,797,501$ Debt Limit (3% of Market Value) 383,573,925 Debt Applicable to Limit: General Obligation Bonds 17,725,000 Public Project Revenue Bonds 16,245,000 Total Debt Applicable to Limit 33,970,000 Legal Debt Margin 349,603,925$ Legal Debt Margin Calculation for Fiscal Year 2019 Fiscal Year CITY OF EDINA, MINNESOTA PLEDGED REVENUE COVERAGE LAST TEN FISCAL YEARS (123) Less: Operating Net Available Revenue Expenses Revenue Principal Interest Total Coverage Public Project Revenue Bonds (Annual Appropriation Lease Revenue) 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 2020 2,506,300 - 2,506,300 1,115,000 540,690 1,655,690 1.51 Tax Increment Bonds 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 - - - - 2020 6,452,819 - 6,452,819 - - - - Permanent Improvement Revolving Bonds (Special Assessment) 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 2020 4,075,208 - 4,075,208 2,570,000 771,215 3,341,215 1.22 Utility Bond 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 2020 25,731,887 21,401,340 4,330,547 4,580,000 1,169,779 5,749,779 0.75 Recreational Facility Bonds 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) 2020 5,583,980 7,213,408 (1,629,428) 876,000 404,703 1,280,703 (1.27) Debt Service RequirementsFiscal Year CITY OF EDINA, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (124) Estimated Personal Per Capita High School Income Personal Graduation Unemployment Population (In thousands) Income Rate Rate 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% 53,268 4,093,965 76,856 98.2% 4.70% 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. 2018 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. Fiscal Year 2014 2013 2012 2011 2020 2019 2018 2015 2016 2017 CITY OF EDINA, MINNESOTA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (125) Percentage Percentage of Total City of Total City Employees Rank Employment Employees Rank Employment Fairview Southdale Hospital 1,624 1 6.59% 1,000 1 4.58% Edina Public Schools ISD #273 1,088 2 4.41% 600 4 2.75% City of Edina 687 3 2.79% DNA DNA DNA BI Worldwide 500 4 2.03% 1,000 3 4.58% Lund Food Holdings, Inc 500 5 2.03% DNA DNA DNA Western National Insurance Company 450 6 1.82% DNA DNA DNA Dow Water & Process Solutions 375 7 1.52% DNA DNA DNA Target 375 8 1.52% DNA DNA DNA Spartan Nash 350 9 1.42% DNA DNA DNA Jerry's Enterprises 300 10 1.22% DNA DNA DNA Macy's (Marshall Field's or Dayton's) DNA DNA DNA 1,000 2 4.58% Promenade Salon Concepts DNA DNA DNA 500 5 2.29% Regis Salons Division DNA DNA DNA 500 6 2.29% Regis Franchise Division DNA DNA DNA 500 7 2.29% Regis Corp. DNA DNA DNA 500 8 2.29% Master Cuts Division DNA DNA DNA 500 9 2.29% Smart Style Family Hair Care DNA DNA DNA 500 10 2.29% Totals 6,249 25.34% 6,600 17.26% Sources: 2020 data from ReferenceUSA, written and telephone survey (April 2020) done by Ehlers, and the Minnesota Department of Employment and Economic Development. 2011 data from previous CAFR. DNA: Data is not available 20112020 Employer CITY OF EDINA, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS (126) 2011 2012 b 2013 b 2014 b 2015 2016 b 2017 b 2018 2019 2020 Administration General Fund 9.25 6.85 5.85 4.85 4.85 5.00 5.00 5.00 5.00 7.00 Communications General Fund 3.50 4.65 5.15 6.15 6.15 6.00 6.00 6.00 6.00 6.80 Internal Services - - - - - - - - - 0.20 Information Technology Services Internal Services 5.00 5.00 5.00 5.00 5.00 5.00 5.00 6.00 6.00 7.00 Community Development General Fund 10.85 10.85 10.85 12.00 12.00 12.00 12.00 12.00 12.00 12.00 HRA Fund - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Engineering General Fund 8.50 10.50 12.00 10.00 11.00 11.00 11.00 12.00 12.00 17.30 PACS Fund - - - 1.00 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 1.35 CAS Fund - - - - - 1.00 1.00 1.00 1.00 1.00 Construction Fund 1.00 1.00 1.00 1.00 1.00 1.10 1.10 1.10 1.10 1.00 Internal Services - - - - - - - - - 4.35 Finance General Fund 5.25 5.25 5.25 6.00 6.00 5.00 5.00 6.00 6.00 6.00 Utilities Fund 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Liquor Fund 0.75 0.75 0.75 - - - - - - - Fire Protection General Fund 39.50 39.75 42.75 42.85 43.85 45.90 45.90 45.80 49.80 63.35 Utilities Fund 0.25 0.25 0.25 0.25 0.25 - - - - 1.65 Human Resources General Fund - 1.00 4.00 4.00 4.00 5.00 5.00 5.00 5.00 4.00 Internal Services - - - - - - - - - 1.00 Parks & Recreation General Fund 23.20 23.20 24.40 23.65 23.65 25.05 25.05 25.30 25.30 24.65 Aquatic Center 0.55 0.55 0.55 0.55 0.55 0.60 0.60 0.70 0.70 0.70 Golf Course 11.00 12.00 12.00 12.00 12.00 8.05 8.05 9.00 9.00 11.00 Arena 5.00 5.00 5.00 5.00 5.00 4.85 4.85 6.25 6.25 5.95 Sports Dome - - - - - 0.15 0.15 1.00 1.00 1.05 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 5.80 5.80 5.80 5.80 5.80 5.65 5.65 5.65 Centennial Lakes 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.05 5.05 5.00 Liquor Fund 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 8.50 Enterprise Funds - - - - - - - - - 0.50 Police Protection General Fund 71.15 71.65 70.65 72.50 70.50 72.55 72.55 76.55 76.55 77.00 Public Works General Fund 30.80 31.80 30.00 26.70 26.70 25.40 25.40 23.30 23.30 19.15 Utilities Fund 14.45 13.95 13.75 15.20 15.20 16.85 16.85 18.65 18.65 19.05 Internal Services 8.50 8.50 8.50 11.00 11.00 10.25 10.25 10.20 10.20 6.60 Enterprise Funds - - - - - - - - - 0.20 Other - - - - - - - - - - Total 273.50 277.50 280.50 284.50 284.50 286.55 286.55 296.55 300.55 324.00 Source: City of Edina 2020-2021 Budget and 2020 Reorganization 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, 2016-2017, and 2020. 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 (127) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General Government Total City Employees 892 989 1,040 1,093 1,077 1,155 1,067 1,136 1,174 953 Votes Cast a 7,957 31,841 3,480 24,049 9,370 31,986 11,440 30,774 10,990 36,088 Public Works Asphalt Placed (Tons) 8,500 9,000 9,273 8,383 8,888 9,298 11,176 14,419 9,847 10,593 Concrete (cu. yds.) 558 667 560 396 670 897 708 868 963 816 Public Safety Crimes Reported 1,590 1,628 1,594 1,571 2,015 2,143 2,431 N/A N/A N/A Fire Calls 960 858 893 926 1,251 1,276 1,220 1,321 1,600 1,265 Medical Calls 3,652 3,946 3,803 3,982 3,818 4,063 4,508 4,572 4,727 4,288 Internal Services Vehicle Fixes 2,331 2,546 3,493 3,277 2,923 2,721 2,478 2,336 1,910 1,780 Utilities Daily Consumption b 6,909 7,613 6,652 6,489 6,308 6,047 5,950 6,101 5,394 5,785 Aquatic Center Attendance 77,696 139,909 91,340 92,200 128,523 108,609 89,318 88,342 83,499 - Golf Course Total Rounds Played c 95,771 96,496 79,529 85,231 66,483 61,256 23,241 20,679 60,561 74,180 Source: Various City departments NData 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 (128) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 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 18 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 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979 13,979 Arena Ice Sheets 3 3 3 3 4 4 4 4 4 4 Source: Various City departments Function Fiscal Year