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
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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.
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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