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1995 Comprehensive Annual Financial Report
CITY OF EDINA, MINNESOTA 0 1 t-j 77' 0 1995 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,1995 M E M O R A N D U M TO: Ken Rosland, City Manager FROM: John Wallin, Finance Director DATE: July 31, 1996 SUBJECT: Response to Auditor's Letter As with any. accounting system, there is always improvements that can be made. In response to this year's auditor's comments, the following procedures and directions are being taken: IMPROVE CASH PROCEDURES AND CONTROLS * The City does have another policy other than the one that covers the Finance Director. That policy is a Public Employees Blanket Bond.for $50,000. • The cashier will begin to endorse checks when received. • The paperwork that accompanies licenses, permits or pool passes are stamped paid and act as a receipt. Other customers are asked whether they want a receipt. If the customer does not want a receipt none is produced. With most City functions, payment delivered in person is the least used method of payment. To set up extra reconciliations for this small group would be very time consuming and do little to help internal controls. * This would involve pulling someone else, probably a utility billing clerk off of their daily functions to complete the bank deposit. The person doing the bank deposit should have that as a first priority. On the days when utility calls are backed up for long periods it would be difficult to give bank deposits high enough priority. SEGREGATE PAYROLL RESPONSIBILITIES * I believe that the other controls are sufficient to cover this area. It is more important that the payroll position be able to distribute the checks.as a final step in the payroll process. * The information from the payroll action forms will now be verified by the personnel department. AUTHORIZE BUDGET FOR COMMUNICATIONS FUND The Communication Fund has been viewed internally as an enterprise fund. Revenue comes from cable franchise fees and interest on investments. Expenditures are mostly the cost of the About Town and the Communication Coordinator's salary. If the Council would like a formal budget, staff will present one._ I Peat Marwick LLP 4200 Norwest Center Telephone 612 305 5000 90 South Seventh Street Minneapolis, MN 55402 Telefax 612 305 5039 P April 26,� 1996 The Honorable Mayor and Members of the City Council City of Edina, Minnesota: We have audited the general purpose financial statements of the City of Edina, Minnesota (the City) for the year ended December 31, 1995, and have issued our report thereon dated April 26, 1996. In planning and performing our audit of the general purpose financial statements of the City, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure.. We have not considered the internal control structure since the date of our report. During our audit we noted certain matters involving the internal control structure and other operational matters that are presented for your consideration. These comments and recommendations, all of which have been discussed with the appropriate members of management, are intended to improve the internal control structure or result in other operating efficiencies and are presented in the attached Exhibit. Our audit procedures are designed primarily to enable us to form an opinion on the financial statements, and therefore may not bring to light all weaknesses in policies or procedures that may exist. This report is intended solely for the information and use of the City Council - and management. We would like to take this opportunity to express our appreciation for the cooperation and assistance provided to us during the audit. If you have any questions concerning the matters discussed in this letter or wish to discuss any other phase of our audit, we would be pleased to do so at your convenience. Very truly yours, Member Firm of Klynveld Peat Marwick Goerdeler - Exhibit CITY OF EDINA, MINNESOTA Comments and Recommendations IMPROVE CASH PROCEDURES AND CONTROLS During the course of our audit, we noted the following items related to cash procedures and controls that may be improved: • The finance director is the only individual with cash responsibilities that is bonded. We recommend the City purchase a bond for all individuals with significant cash responsibilities, including the cashier, to help insure the City from losses. • The City restrictively endorses checks at the time the deposit ticket is prepared. We recommend that the City restrictively endorse checks immediately. upon receipt to help avoid misappropriation of funds. • The City does not issue receipts for payments delivered in person to City offices. We recommend the City issue receipts for all cash payments received and we recommend the City reconcile the receipts to the total amount entered into the accounting system. This will help improve controls over cash receipts. • The cashier is responsible for depositing funds and entering receipts into the receivables system. We recommend the City segregate these responsibilities so that the individual who prepares the bank deposit is not also involved in entering receipts. This will help reduce misappropriation opportunities. SEGREGATE PAYROLL RESPONSIBILITIES Strong internal controls require segregation of duties in areas in which too much responsibility with one individual may lead to a misappropriation of assets. During the course of our audit, we noted the following items related to payroll responsibilities that may be improved: • The payroll clerk is responsible for the preparation, signing, and distributing of payroll checks. We recommend the City segregate these responsibilities so that the individual who prepares payroll checks is not also involved in signing and distributing payroll checks. • The payroll clerk enters changes in the payroll system based on action forms received from the personnel department. These changes are not verified. We recommend the personnel department review all payroll system changes to ensure that all changes were properly entered. This additional segregation of duties will help enhance the internal controls and help reduce misappropriation opportunities. 2 Exhibit, Cont. CITY OF EDINA, MINNESOTA Comments and Recommendations, Continued AUTHORIZE BUDGET FOR COMMUNICATIONS FUND The Council authorizes annual budgets for the General Fund and Community Block Development Grant Fund, however, the Council does not authorize a budget for the other special revenue fund, entitled the Communications Fund. An authorized budget for the General Fund and all special revenue funds is a common practice. In addition, an authorized budget is an effective management tool for controlling and monitoring revenues and expenditures. We recommend the Council authorize a budget for the Communications Fund. This will help enhance internal controls. ff""Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report on Legal Compliance Honorable Mayor and Members of the City Council City of Edina, Minnesota: We have audited the general purpose financial statements of the City of Edina, Minnesota (the City) as of and for the year ended December 31, 1994, and have issued our report thereon dated April 21, 1995. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota Statute §6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested the City complied with the material terms and conditions of applicable legal provisions. Further, for the items not tested, based on our audit and the procedures referred to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. April 2l,'1995 ❑ ❑ ❑❑ Member Firm of Klynveld Peat Marwick Goerdeler �P CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report Year ended December 31, 1995 Department of Finance John Wallin -- Treasurer and Finance Director Eric Anderson -- Assistant Finance Director Peggy Gibbs -- Accountant CITY OF EDINA, MINNESOTA TABLE OF CONTENTS Page PART I -- INTRODUCTORY SECTION Elected and Appointed Officials ........... ............................... 1 Letters of Transmittal ............. .... ............................... 2 PART II -- FINANCIAL SECTION Independent Auditors' Report ............. ............................... 9 General Purpose Financial Statements: Combined Balance Sheet — All Fund Types and Account Groups ............... 11 Combined Statement of Revenues, Expenditures and Changes in Fund Balance — All Governmental Fund Types ............................ 13 Combined Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General and Special Revenue Fund Types . 15 Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types .......................... 17 Combined Statement of Cash Flows — All Proprietary Fund Types .............. 18 Notes to General Purpose Financial Statements ............................ 19 Combining and Individual Fund and Account Group Financial Statements: General Fund: Balance Sheet ........................ .............................42 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual .... ............................... 43 Schedule of Revenues — Budget and Actual .............................. 44 Schedule of Expenditures — Budget and Actual ........................... 45 Schedule of Central Services Expenditures — Budget and Actual .............. 52 Special Revenue Funds: Combining Balance Sheet ............. ............................... 54 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ..................... ............................... 55 Debt Service Funds: Combining Balance Sheet ............. ............................... 57 Combining Statement of Revenues, Expenditures and Changes in Fund Balance ..................... ............................... 58 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Combining and Individual Fund and Account Group Financial Statements (Continued): Capital Project Funds: Combining Balance Sheet ............. ............................... 60 Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) .............. ............................... 61 Enterprise Funds: Combining Balance Sheet ............. ............................... 63 Combining Statement of Revenues, Expenses and Changes in Retained Earnings 65 Combining Statement of Cash Flows .... ............................... 67 Utilities Fund: Balance Sheet ................... ............................... 69 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 70 Statement of Cash Flows .......... ............................... 72 Liquor Fund: Balance Sheet ................... ............................... 73 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 74 Statement of Cash Flows .......... ............................... 75 Schedule of Operating Expenses .... ............................... 76 Swimming Pool Fund: Balance Sheet ..................... .............................77 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 78 Statement of Cash Flows .......... ............................... 79 Golf Course Fund BalanceSheet ..................... .............................80 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 81 Statement of Cash Flows .......... ............................... 82 Schedule of Operating Expenses .... ............................... 83 Arena Fund: Balance Sheet ................... ............................... 84 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 85 Statement of Cash Flows .......... ............................... 86 Gun Range Fund: Balance Sheet ................... ............................... 87 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 88 Statement of Cash Flows .......... ............................... 89 Art Center Fund: Balance Sheet ................... ............................... 90 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 91 Statement of Cash Flows .......... ............................... 92 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Combining and Individual Fund and Account Group Financial Statements (Continued): Edinborough Park Fund: Balance Sheet ................... ............................... 93 Statement of Revenues, Expenses and Changes in Retained Earnings ...... 94 Statement of Cash Flows .......... ............................... 95 Agency Funds: Statement of Changes in Assets and Liabilities ............................ 97 General Fixed Assets Account Group: Schedule of General Fixed Assets ...... ............................... 99 General Long -term Debt Account Group: Schedule of General Long -term Debt ... ............................... 101 Supplementary Information: Exhibit Page Combined Schedule of Bonded Indebtedness ....... Exhibit 1 .............. 102 Schedule of Changes in Bonded Indebtedness ...... Exhibit 2 .............. 104 Schedule of Bonds Payable ..................... Exhibit 3 .............. 105 Schedule of Debt Service Requirements ........... Exhibit 4 .............. 112 Assessed Valuation, Tax Levies and Mill Rates ...... Exhibit 5 .............. 113 Independent Auditors' Report on Supplementary Schedule of Federal Financial Assistance ......... Exhibit 6 .............. 114 Schedule of Federal Financial Assistance .......... Exhibit 7 .............. 115 Independent Auditors' Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs .......... Exhibit 8 .............. 116 Federal Financial Assistance Program Transactions .. Exhibit 9 .............. 117 Independent Auditors' Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards ............ Exhibit 10 ............. 118 Independent Auditors' Report on the Intemal Control Structure Used in Administering Federal Financial Assistance Programs —No Major Programs ........ Exhibit 11 ............. 119 CITY OF EDINA, MINNESOTA Table of Contents, Continued Supplementary Information (Continued): Exhibit Page Independent Auditors' Report on the Internal Control Structure Based on an Audit of the General Purpose Financial Statements Performed in Accordance with Government Auditing Standards .......... Exhibit 12 ............. 122 Schedule of Findings and Questioned Costs ........ Exhibit 13 ............. 124 Independent Auditors' Report on Minnesota Legal Compliance . ............................... Exhibit 14 ............. 125 PART III — STATISTICAL SECTION Table Page General Governmental Expenditures by Function Last Ten Fiscal Years .......................... Table 1 .............. 126 General Governmental Revenues by Source Last Ten Fiscal Years .......................... Table 2 .............. 127 Property tax Levies and Collections — Last Ten Fiscal Years ... ............................... Table 3 .............. 128 Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property ................. Table 4 .............. 129 Property Tax Rates — All Overlapping Governments Last Ten Fiscal Years .......................... Table 5 .............. 130 Special Assessment Collections — Last Ten Fiscal Years ... ............................... Table 6 .............. 131 Ratio of Net General Bonded Debt to Assessed Value/Tax Capacity and Net Bonded Debt per Capita — Last Ten Fiscal Years ................... Table 7 .............. 132 Computation of Legal Debt Margin - December 31, 1995 . Table 8 .............. 133 Computation of Overlapping Debt - December 31, 1995 .. Table 9 .............. 134 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures — Last Ten Fiscal Years ............. Table 10 .............. 135 Revenue Bond Coverage — Last Ten Fiscal Years ..... Table 11 .............. 136 Property and Construction Values — Last Ten Fiscal Years .. ............................... Table 12.............. 137 Principal Taxpayers - December 31, 1995 ........... Table 13 .............. 138 Major Employers in the City ...................... Table 14 .............. 139 Labor Force Data .............................. Table 15.............. 140 Miscellaneous Statistics - December 31, 1995 ........ Table 16 .............. 141 CITY OF EDINA, MINNESOTA Table of Contents, Continued Statistical Section (Continued): Table Page Sources and Uses of Public Funds for 50th & France -No. 1200, a Tax Increment Financing District ... ..........................Table 17 ............... 143 Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1201, a Tax Increment Financing District ....... Table 18 ....... ...... 144 Sources and Uses of Public Funds for Grandview Area Redevelopment District - No. 1202, a Tax Increment Financing District ...... Table 19 .............. 145 Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1203, a Tax Increment Financing District ...... Table 20 .............. 146 Sources and Uses of Public Funds for Southeast Edina Economic Development District -No. 1204, a Tax Increment Financing District ... ............................... .Table 21 ............. 147 Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District ......... Table 22 ............. 148 INTRODUCTORY SECTION CITY OF EDINA, MINNESOTA Elected and Appointed Officials December 31, 1995 Elected: Mayor -- Frederick S. Richards Council: Glenn L. Smith Dennis Maetzold Peggy Kelly Jane L. Paulus Appointed: Manager- Kenneth E. Rosland Treasurer and Finance Director -John Wallin Assistant Finance Director -Eric Anderson Clerk -Debra Mangen *First Official business day. Page 1 Term of office expires January 1997 1999 1999 1997 1997 A. o e Page 2 Cn City of Edina April 26, 1996 To the Honorable Mayor and Members of the City Council City of Edina, Minnesota: In accordance with State Statutes and local charter provision, I hereby transmit the annual financial report of the City of Edina, Minnesota as of December 31,1995 and for the fiscal year then ended. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. All disclosures. necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are discussed by the Finance Director in his accompanying letter of transmittal, and within that framework, I believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. In accordance with the above - mentioned guidelines the accompanying report consists of three sections: 1) Introductory section - includes the Finance Director's letter of transmittal; 2) Financial section - includes the financial statements and supplemental schedules of the government accompanied by our independent auditors' reports; and 3) Statistical section - includes a number of tables of unaudited data depicting the financial history of the government for the past ten years, information on overlapping governments, and demographic and other miscellaneous information. State law requires that the financial statements of the City of Edina, Minnesota be audited by a certified public accountant selected by the City Council. This requirement has been complied with, and our independent auditors' reports are included in the financial section of this report. City Hall (612) 927 -8861 4801 WEST 50TH STREET FAX (612) 927 -7645 EDINA, MINNESOTA 55424 -1394 TDD (612) 927 -5461 Page 3 The City of Edina, Minnesota concluded fiscal year 1995 in a sound financial condition, which is shown in the report. Preparation of this annual financial report could not have been accomplished without the dedicated effort of the Finance Director and his entire staff. Their efforts over the past years toward upgrading the accounting and financial reporting systems of the City of Edina have lead substantially to the improved quality of the information being reported to the City Council, state oversight boards, and the citizens of the City of Edina. Respectfully submitted, Kenneth E. Rosland City Manager w9tN�lry o e Page 4 m • ���bnroM'��"9 City of Edina April 26, 1996 To the Honorable Mayor, Members of the City Council, and City Manager City of Edina, Minnesota: The Comprehensive Annual Financial Report of the City of Edina (the City), for the fiscal year ended December 31,1995, is submitted herewith. This report was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the City. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial affairs have been included. Accounting System and Budgetary Control In developing and evaluating the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained through the issuance of purchase orders. Purchase orders which would result in an overrun of the budgeted allotment are not released until additional appropriations are made available. City Hall (612) 927 -8861 4801 WEST 50TH STREET FAX (612) 927 -7645 EDINA, MINNESOTA 55424 -1394 TDD (612) 927 -5461 Page 5 The Reporting Entity and Its Services The City has reviewed its reporting entity definition in accordance with Governmental Accounting Standards Board Statement 14, The Financial Reporting Entity. The entities included in the City's report are those for which the City has oversight responsibility. The City provides the full range of municipal services. These services include police and fire protection, civil defense, public health, animal control, inspections, public works maintenance, public improvements, parks and recreation activities, and general administrative services. SIGNIFICANT EVENTS AND ACCOMPLISHMENTS General Governmental Functions Revenues for general governmental functions reported within the General, Special Revenue, Debt Service and Capital Project Funds totaled $28,268,252 in 1995, an increase of 5.6 percent over 1994. General property taxes produced 55.0 percent of general revenues compared to 65.9 percent last year. The amount of revenues from various sources and the increase (decrease) over last year are shown in the following table: Increase Percent (decrease) Revenue Source Total of total from 1994 Taxes $ 15,534,902 54.96% $(2,102,556) Special assessments 858,897 3.04% (228,934) Franchise fee Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest on investments Interest on funds held with fiscal agent 209,519 0.74% 3,258 1,070,352 3.79% 123,230 5,693,802 20.14% 3,885,976 1,510,470 5.34% 258,867 545,996 1.93% 223,004 396,397 1.40% (195,588) 1,742,621 6.16% 15,518 Sale and rental of property 4,056 0.01% (170,914) Other revenues 701,240 2.48% (315,365) Total revenues $ 28,268,252 100.00% $ 1,496,496 Current tax collections were 98.3 percent of the tax levy, up .5 percent from last year. Delinquent tax collections were less than last year. The ratio of total collections (current and delinquent) to the current tax levy was 97.7 percent, an increase of .2 percent from last year. Page 6 Intergovernmental revenues were 19.2 percent of general revenues compared to 6.8 percent in 1994. Expenditures for general governmental purposes within the General, Special Revenue, Debt Service and Capital Project Funds totaled $28,708,856 an increase of 14.5 percent over 1994. Increases (decreases) in levels of expenditures for major functions of the City over last year are shown in the following table: Function General government Public safety Public works Parks Unallocated general Other Capital outlay Bond principal Interest and fiscal charges Total expenditures Expenditures for public safety were 25.3 percent of total general governmental expenditures. This expenditure function includes police protection, fire protection, civil defense, animal control, public health and building inspection expenditures.. Debt Administration The ratio of net bonded debt to tax capacity and the amount of bonded debt per capita are useful indicators of the City's debt position and are listed below: Ratio of net bonded debt to tax capacity Net bonded debt per capital The following is a summary of bonded debt for fiscal year 1995: Gross bonded debt outstanding, January 1, 1995 Add bonds issued in fiscal year 1995 Deduct bonds redeemed in fiscal year 1995 Gross bonded debt outstanding, December 31, 1995 Deduct sinking fund assets, December 31, 1995 Net bonded debt, December 31, 1995 .7823 $ 1.249 $104,615,000 0 2,840,000 101,775,000 (43,265,984) The City's bonds continue to have an Aa1 rating as determined by Moody's Investors Service, and an AA rating from Standard & Poors. Increase Percent (decrease) Total of total from 1994 $ 2,069,527 7.2% $(27,994) 7,251,129 25.3% 476, 537 3,160,831 11.0% 174,938 1,850,610 6.4% 124,969 309,152 1.1% 128,563 5,389,205 18.8% 2,115,357 804,587 2.8% 104,136 2,495,000 8.7% 1,310,000 5,378,815 18.7% (769,651) $ 28.708.856 100.0% $ 3.636.855 Expenditures for public safety were 25.3 percent of total general governmental expenditures. This expenditure function includes police protection, fire protection, civil defense, animal control, public health and building inspection expenditures.. Debt Administration The ratio of net bonded debt to tax capacity and the amount of bonded debt per capita are useful indicators of the City's debt position and are listed below: Ratio of net bonded debt to tax capacity Net bonded debt per capital The following is a summary of bonded debt for fiscal year 1995: Gross bonded debt outstanding, January 1, 1995 Add bonds issued in fiscal year 1995 Deduct bonds redeemed in fiscal year 1995 Gross bonded debt outstanding, December 31, 1995 Deduct sinking fund assets, December 31, 1995 Net bonded debt, December 31, 1995 .7823 $ 1.249 $104,615,000 0 2,840,000 101,775,000 (43,265,984) The City's bonds continue to have an Aa1 rating as determined by Moody's Investors Service, and an AA rating from Standard & Poors. Page 7 At December 31,1995 the City had $85,385,000 of Tax Increment Bonds outstanding, excluding Improvement and Revenue Bonds. $37,251,695 was available in the General Debt Service Fund for payment of these obligations, resulting in $48,133,305 net general debt at December 31,1995. Cash Management The City subscribes to the "pooled cash" concept of investing which means that all funds with cash balances participate in an investment pool. This permits some funds to be overdrawn and others to show cash balances when in fact, the City has a cash balance. This pooled cash concept provides for investing greater amounts of money at more favorable rates. Interest earnings are then periodically allocated to the participating funds. During 1995 the City earned $396,397 in interest income. The following is a list of the City's cash and investments by classification as of December 31, 1995: Cash Cash deficit Cash with plan administrator Cash with fiscal agents Certificates of deposit Commercial paper Government securities Money market investments Capital Project Funds $ 8,446,368 (8,428, 959) 7,578,164 41,670,827 1,137, 690 10,842,616 12,545,818 1,393,273 The major construction projects and equipment purchases are accounted for in three Capital Project Funds. The HRA Fund accounts for construction projects within the City's seven tax increment districts. The Construction Fund and Revolving Fund are for construction projects or major equipment purchases funded through special assessments, State aids, General Fund appropriations, or working capital funds. General Fixed Assets The general fixed assets of the City are those fixed assets used in the performance of general governmental functions and exclude the fixed assets of the Enterprise Funds. As of December 31, 1995 the general fixed assets of the City amounted to $65,472,118 This amount represents the original cost of the assets and is considerably less than their present value. Depreciation of general fixed assets is not recognized in the City's accounting system. Page 8 Enterprise Funds The City currently operates eight Enterprise Funds which are set up to operate primarily from user fees charged to the general public. A comparative statement of income (loss) before operating transfers for the fiscal years ended 1995 and 1994 is as follows: Utilities Liquor Swimming pool Golf course Arena Gun Range Art Center Edinborough Park Income (loss) before transfers 1995 1994 $ 746,861 $ 310,955 580,323 588,872 35,002 (2,996) (217,150) (234,214) (95,418) (257,356) (12,962) 2,299 (82,822) (73,342) (305,918) (705,257) Transfers from /to other funds for various purposes were $237,583 and $250,583 in 1995 and $100,321 and $460,321 in 1994, respectively. Independent Audit Minnesota State Statutes require that every city with a population of more than 2,500 submit to the State Auditor audited financial statements which have been attested to by a certified public accountant, public accountant or the State Auditor. This Statute has been complied with, and the independent auditors' report of the certified public accounting firm of KPMG Peat Marwick LLP has been included in this Comprehensive Annual Financial Report for 1995. Acknowledgments The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members of the Department who assisted and contributed to its preparation. We should also like to thank the Mayor and City Council members for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, ohn Wallin, CPA Treasurer and Finance Director ft 4 bs Accountant FINANCIAL SECTION KPMGJ Peat Marwick LL.P 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report Honorable Mayor and Members of the City Council City of Edina, Minnesota: Page 9 We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31,1995. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Edina, Minnesota, as of December 31,1995, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. As discussed in note 16 to the general purpose financial statements, the City changed its method of accounting for risk financing activities to adopt the provisions of Governmental Accounting Standards Board Statement No. 10, Accounting and Reporting for Risk Financing and Related Insurance Issues, as of January 1, 1995. As discussed in note 6 to the general purpose financial statements, the City changed its method of accounting for the pension plans to adopt the provision of Governmental Accounting Standards Board Statement No. 27 Accounting for Pensions by State and Local Government Employers, as of January 1, 1995. In accordance with Government Auditing Standards, we have also issued a report dated April 26, 1996 on our consideration of the City of Edina, Minnesota's internal control structure and a report dated April 26, 1996 on its compliance with laws and regulations. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund, and account group financial statements and schedules listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial Member Firm of __ - _ i Klynveld Peat Marwick Goerdeler KPMnGJ Peat Marwick LLP Page 10 statements of the City of Edina, Minnesota. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. The data designated as the "statistical section" in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. zz000 April 26, 1996 CITY OF EDINA, MINNESOTA Page 11 Combined Balance Sheet - All Fund Types and Account Groups December 31, 1995 (with comparative totals for December 31, 1994) Assets and Other Debits General Cash (note 2) $ (245,258) Investments (note 2) 7;351,808 Cash and investments with plan administrators (notes 2 and 7) 0 Cash and investments with fiscal agents 0 Receivables: Accounts., 361,590 Interest `" 1,688 Special assessments 0 Metropolitan Council 0 Developer, loan 0 Due from other funds (note 9) 5,185,830 Due from other governments 201,631 Inventory 0 Prepaid Expenses 38,076 Fixed Assets (note 4) 0 Discount on bonds 0 Amount available in debt service fund 0 Amount to be provided for retirement of long -term debt 0 Total assets and other debits $ 12,895,365 Liabilities, Fund Equity and Other Credits Liabilities: Accounts payable Salaries payable Contracts payable Accrued interest payable Due to other funds (note 9) Due to other governments Deposits payable Due to participants (note 7) Taxes payable Accrued compensated absences Deferred revenue Obligation under capital lease (note 13) Bonds payable (note 5) Total liabilities Fund equity and other credits: Investment in general fixed assets (note 4) Contributed Capital Retained earnings: Reserved (note 10) Unreserved- undesig nated Fund balance: Reserved (note 10) Unreserved - designated (note 10) Unreserved - undesignated Total fund equity and other credits Contingenicies (note 12) Total liabilities, fund equity and other credits See accompanying notes to financial statements 338,514 169,335 0 0 2,461,010 153,185 0 0 0 3,621 0 0 0 3,125,665 Governmental fund types Special Revenue 0 829,012 0 0 54,541 9,204 0 0 0 0 39,506 0 0 0 0 0 0 932,263 12,195 724 0 0 101,753 20 0 0 0 676 0 0 0 115,368 Debt Capital Service Projects 0 199,090 .0 17,738,577 0 0 37,051,695 0 33,210 0 2,923,482 0 0 580,922 872 0 0 0 0 0 0 40,590,181 0 0 0 0 0 181,604 0 0 0 0 2,766,615 0 0 2,948,219 14,292 139,448 127,911 0 1,460,612 3,150,639 45,378 0 0 0 0 0 n 22,875,947 22,958 479 54,968 0 5,427, 783 1,493, 817 91,108 0 51,320 0 127,911 0 0 7,270,344 0 0 0 0 0 0 0 0 0 0 1,371,189 6,993,805 1,404,706 9,769,700 $ 12,895,365 0 0 0 0 816,895, 816,895 932,263 0 0 37,641,962 0 0 37,641,962 40,590,181 0 0 91,669 0 15,513,934 15,605,603 22,875,947 Page 12 Proprietary Fiduciary fund type fund type Account groups General General Totals Fixed Long -term (memorandum only) Enterprise Agency Asset Debt 1995 1994 9,240 54,337 0 0 17,409 411,102 0 0 0 0 25,919,397 23,110,815 0 7,578,164 0 0 7,578,164 6,521,280 4,619,131 0 0 0 41,670,826 43,003,458 2,355,326 0 0 0 2,818,959 2,050,861 68,926 0 0 0 219,266 269,927 1,759 0 0 0 3,053,152 3,199,565 0 0 0 0 0 168,933 0 0 0 0 1,460,612 1,290,612 2,166,056 0 0 0 11,083,447 16,652,778 7,449 0 0 0 294,836 .228,137 623,764 0 0 0 623,764 579,318 288,506 0 0 0 326,582 56,667 33,283,222 0 65,472,118 0 98,755,340 97,313,674 95,742 0 0 0 95,742 110,698 0 0 0 37,641,962 37,641,962 38,941,487 0 0 0 49,573,961 49,573,961 50,746,760 43,519,121 7,632,501 65,472,118 87,215,923 281,133,419 284,656,072 378,982 0 0 0 752,649 627,378 43,640 0 0 0 214,178 226,896 750 0 0 0 55,718 64,919 453,275 0 0 0 453,275 276,256 3,079,423 13,478 0 0 11,083,447 16,652,778 126,204 40,859 0 0 1,995,689 545,949 16,276 0 0 0 107,384 15,017 0 7,578,164 0 0 7,578,164 6,521,280 0 0 0 0 51,320 81,882 109,069 0 0 485,923 599,289 585,994 15,531 0 0 0 2,910,057 3,226,012 450,000 0 0 0 450,000 490,000 15,045,000 0 0 86,730,000 101,775,000 104,615,000 19,718,150 7,632,501 0 87,215,923 128,026,170 133,929,361 0 0 65,472,118 0 65,472,118 63,464,899 699,706 0 0 0 699,706 772,573 1,607,120 0 0 0 1,607,120 1,607,120 21,494,145 0 0 0 21,494,145 20,786,362 0 0 0 0 39,104,820 40,053,558 0 0 0 0 6,993,805 6,867,639 0 0 0 0 17,735,535 17,174,560 23,800,971 0 65,472,118 0 153,107,249 150,726,711 43,5° 7,632,501 65,472,118 87,215,923 281,133,419 284,656,072 CITY OF EDINA, MINNESOTA Page 13 Combined Statement of Revenues, Expenditures and Changes in Fund Balance - AII Governmental Fund Types Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Revenues: Taxes (note 3) Special assessments Franchise fees Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest on investments Interest on funds held with fiscal agent Sales and rental of property Other revenues Total revenues Expenditures: Current: General government Public safety Public works Parks Other Capital outlay: General government Public safety Public works Parks Infrastructure Other Debt Service: Bond principal Interest and fiscal charges Total expenditures Governmental fund types 21,169 Special Debt Capital General Revenue Service Projects 11,152,197 0 0 4,382,705 0 0 723,714 135,183 0 209,519 0 0 1,070,352 0 0 0 1,527,991 181,767 0 3,984,044 1,510,470 0 0 0 545,996 0 0 0 14,948 45,337 0 351,060 0 0 1,742,621 0 64,815 0 0 4,056 47,217 0 0 544,101 15,933,986 436,623 2,466,335 9,401,149 2,069,527 0 0 0 7,251,129 0 0 0 3,160,831 0 0 0 1,850,610 0 0 0 177,693 433,002 1,659 725,482 21,169 0 0 0 294,355 0 0 0 395,767 0 0 0 93,296 0 0 0 0 0 0 4,352,521 0 8,000 0 0 0 0 2,495,000 0 0 0 5,378,815 0 15,314,377 441,002 7,875,474 5,078,003 Excess (deficiency) of revenues over expenditures 619,609 (4,379) (5,409,139) 4,323,146 Other financing sources (uses): Proceeds from sale of land 0 0 0 0 Operating transfers in 383,000 0 4,309,614 50,159 Operating transfers out (420,159) 0 0 (4,309,614) Parkland dedication 193,766 0 0 0 Reserve for construction 2,400 0 0 0 Total other financing sources (uses) 159,007 0 4,309,614 (4,259,455) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 778,616 (4,379) (1,099,525) 63,691 Fund balance - January 1 8,991,084 821,274 38,741,487 15,541,912 Fund balance - December 31 $ 9,769,700 816,895 37,641,962 15,605,603 See accompanying notes to financial statements Page 14 Totals (memorandum only) 1995 1994 15, 534, 902 17,637,458 858,897 1,087,831 209,519 206,261 1,070,352 947,122 5,693,802 1,807,826 1,510,470 1,251,603 545,996 322,992 411,345 591,985 1,742,621 1,727,103 68,871 174,970 591,318 1,016,605 28,238,093 26,771,756 2,069,527 2,097,521 7,251,129 6,774592 3,160,831 2,985,893 1,850,610 1,725,641 1,337,836 854,110 21,169 20,367 294,355 303,513 395,767 304,112 93,296 72,459 4,352,521 2,600,327 8,000 0 2,495,000 1,185,000 5,378,815 6,148,466 28,708,856 25,072,001 (470,763) 1,699,755 0 4,742,773 (4,729,773) 193,766 2,400 209,166 (261,597) 5,107 5,127,560 (4,767,560) 35,055 2,400 402,562 2,102,317 64,095,757 61,993,440 63,834,160 64,095,757 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Revenues: Taxes (note 3) Franchise fees Licenses and permits Intergovernmental Charges for services Fines and forfeitures Interest on investments Sales and rental of property Other revenues Total revenues Expenditures: Current: General government Public safety Public works Parks Unallocated general Other Capital outlay: General government Public safety Public works Parks Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Transfer dedicated funds Parkland dedication Reserve for construction Total other financing sources (uses) Page 15 General Variance favorable Budget Actual (unfavorable) $ 11,080,898 0 921,710 1,512,120 1,305,000 425,000 35,000 30,000 30,500 15,340,228 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses $ Fund balance January 1 Fund balance - December 31 See accompanying notes to financial statements 2,124,983 7,178,427 3,326,169 1,890,018 277,670 0 21,130 369,807 396,413 88,452 15,673, 069 11,152,197 0 1,070, 352 1,527,991 1,510,470 545,996 14,948 64,815 47,217 15,933,986 2,069,527 7,251,129 3,160,831 1,850,610 309,152 (131,459) 21,169 294,355 395,767 93,296 15,314,377 71,299 0 148,642 15,871 205,470 120,996 (20,052) 34,815 16,717 593,758 55,456 (72,702) 165,338 39,408 (31,482) 131,459 (39) 75,452 646 (4,844) 358,692 (332,841) 619,609 952,450 383,000 (50,159) 0 0 0 332,841 383,000 (50,159) 193,766 (370,000) 2,400 159,007 0 778,616 8,991,084 9,769,700 0 0 193,766 (370,000) 2,400 (173,834) 778,616 Page 16 Totals (memorandum only) Special Revenue 1995 1994 Variance Variance favorable favorable Budget Actual (unfavorable) Budget Actual (unfavorable) Actual 0 0 0 11,080,898 11,152,197 71,299 10,698,748 0 209,519 209,519 0 209,519 209,519 206,261 0 0 0 921,710 1,070,352 148,642 947,122 163,661 181,767 18,106 1,675,781 1,709,758 33,977 1,672,209 0 0 0 1,305,000 1,510,470 205,470 1,251,603 0 0 0 425,000 545,996 120,996 322,992 0 45,337 45,337 35,000 60,285 25,285 25,637 0 0 0 30,000 64,815 34,815 74,338 0 0 0 30,500 47,217 16,717 32,217 163,661 436,623 272,962 15,503,889 16,370,609 866,720 15,231,127 0 0 0 2,124,983 2,069,527 55,456 2,097,521 0 0 0 7,178,427 7,251,129 (72,702) 6,774,592 0 0 0 3,326,169 3,160,831 165,338 2,985,893 0 0 0 1,890,018 1,850,610 39,408 1,725,641 0 0 0 277,670 309,152 (31,482) 180,589 163,661 441,002 (277,341) 163,661 309,543 (145,882) 235,738 0 0 0 21,130 21,169 (39) 20,367 0 0 0 369,807 294,355 75,452 303,513 0 0 0 396,413 395,767 646 304,112 0 0 0 88,452 93,296 (4,844) 72,459 163,661 441,002 (277,341) 15,836,730 15,755,379 81,351 14,700,425 0 (4,379) (4,379) (332,841) 615,230 948,071 530,702 0 0 0 383,000 383,000 0 380,000 0 0 0 (50,159) (50,159) 0 (117,000) 0 0 0 0 193,766 193,766 35,055 0 0 0 0 (370,000) (370,000) (120,000) 0 0 0 0 2,400 2,400 2,400 0 0 0 332,841 159,007 (173,834) 180,455 0 (4,379) (4,379) 0 774,237 774,237 711,157 821,274 9,812,358 9,101,201 816,895 10,586,595 9,812,358 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Sales and cost of sales: Sales Cost of Sales Gross profit Operating revenues: Charges for services Total gross profit and operating revenues Operating expenses: Disposal charges Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income Nonoperating revenues (expenses): Interest on investments Donations. Interest earned from fiscal agent Interest and fiscal charges Interest on capital lease Gain on sale of fixed assets Amortization of bond discount Miscellaneous Total nonoperating revenues (expenses) Income (loss) before operating transfers Operating transfers in (out): General fund Revolving fund Art center fund Liquor store fund Arena fund Golf dome Total operating transfers, net Net income (loss) Add depreciation on contributed assets Increase (decrease) in retained earnings Retained earnings - January 1 Retained earnings - December 31 See accompanying notes to financial statements Page 17 Totals 1995 1994 $ 6,004,554 5,821,688 4,528,788 4,393,544 1,475,766 1,428,144 11,939,010 10,990,426 13,414,776 12,418, 570 3,359,464 3,361,826 2,457,552 818,483 966,780 1,536,055 12,500,160 914,616 439,582 23,039 221,982 (917,427) (23,265) 0 (14,955) 4,344 (266,700) 647,916 (33,000) 20,000 (120,413) 100,000 (97,170) 117,583 (13,000) 634,916 72,867 707,783 3,262,098 3,202,834 2,560,240 763,472 909,676 1,405,991 12,104,311 314,259 85,261 26,987 214,091 (952,517) (47,749) 287 (15,826) 4,168 (685,298) (371,039) (380,000) 20,000 33,735 0 46,586 (80,321) (360,000) (731,039) 128,073 (602,966) 22,393,482 22,996,448 $ 23,101,265 22,393,482 Page 18 CITY OF EDINA, MINNESOTA Combined Statement of Cash Flows - All Proprietary Fund Types Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Cash flows from capital financing activities Payment to other funds Totals (10,000) Net acquisition of capital assets 1995 1994 Cash flows from operating activities: 396 287 Operating income $ 914,616 314,259 Adjustments to reconcile operating income to net cash provided by operating activities: (40,000) (20,000) Depreciation expense 1,536,055 1,405,991 Changes in assets and liabilities: (23,265) (47,749) (Increase) in accounts receivable (642,330) (153,546) (Increase) decrease in due from other governments 91,610 (231) (Increase) in inventory (44,446) (26,714) (Increase) in prepaid expenses (288,506) 0 Increase (decrease) in accounts payable 82,096 (133,615) Increase in salaries payable 13,903 579 Increase in compensated absences payable 6,684 102,436 Increase (decrease) in due to other governments (105,651) 231,804 Increase (decrease) in accrued interest payable 177,019 (59,269) (Decrease) in contracts payable 0 (46,762) Increase in deposits payable 1,259 2,088 Increase in deferred revenue 2,931 0 Total adjustments 830,624 1,322,761 Net cash provided by operating activities 1,745,240 1,637,020 Cash flows from noncapital financing activities: Miscellaneous 3,948 4,168 Donations 23,039 26,987 (Increase) in due from other funds (11,558) (132,634) Increase (decrease) in due to other funds (279,619) 615,762 Operating transfers out- General Fund (33,000) (380,000) Operating transfers in- Revolving Fund 20,000 20,000 Operating transfers out -Golf dome 117,583 (80,321) Operating transfers in -Art center (120,413) 33,735 Operating transfers in- Swimming pool 100,000 0 Operating transfers in -Arena (97,170) 46,586 Contributed capital 0 9,331 Net cash used for noncapital financing activities (277,190) 163,614 Cash flows from capital financing activities Payment to other funds (10,000) (10,000) Net acquisition of capital assets (970,501) (1,073,958) Gain (loss) on sale of fixed assets 396 287 Principal paid on revenue bonds (345,000) (2,365,000) Principal paid on capital lease (40,000) (20,000) Interest earned from fiscal agent 221,982 214,091 Interest paid on capital lease (23,265) (47,749) Interest paid on bonds (917,427) (952,517) Net cash used for capital financing activities (2,083,815) (4,254,846) Cash flows from investing activities Change in investments 53,833 332,599 (Increase) decrease in interest receivable 34,999 (30,949) Interest on investments 439,582 85,261 Net cash provided by investing activities 528,414 386,911 Net (decrease) in cash and cash equivalents (87,351) (2,067,301) Cash and cash equivalents, beginning of year 4,715,722 6,783,023 Cash and cash equivalents, end of year $ 4,628,371 4,715,722 See accompanying notes to financial statements Page 19 CITY OF EDINA, MINNESOTA Notes to Financial Statements December 31,1995 (1) Summary of Significant Accounting Policies The City operates under the "Optional Plan B" form of government according to applicable State of Minnesota Statutes. The Statutes prescribe a Council- Manager form of organization. The City provides the following services: public safety, highways and streets, sanitation, health and social services, culture- recreation, public improvements, planning and zoning, and general administration. The City was incorporated in 1888. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: A. Financial Reporting Entity In accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, "The 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 © other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The primary government is financially accountable for the component unit if it appoints a voting majority of the component unit's governing body and is able to impose its will on the component unit or there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the primary government. As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the primary government and its component units (legally separate organizations). The component unit discussed below is included in the City's reporting entity because of the significance of its operational or financial relationship with the City. In conformity with generally accepted accounting principles, the financial statements of a component unit has been included in the City's reporting entity as a blended component unit. The blended component unit's financial data are reported as part of the primary government. Blended Component Unit. The following component unit has been presented as a blended component unit because the component unit's governing body is substantively the same as the governing body of the City. (Continued) Page 20 CITY OF EDINA, MINNESOTA Housing and Redevelopment Authority of Edina The Housing and Redevelopment Authority of Edina (HRA) strives to redevelop the residential and commercial areas of the City and to provide affordable housing, adequate jobs and a sound financial base for the City residents. The City Council members act as the HRA board and therefore the HRA's governing body is substantially the same as the City's governing body. The HRA activities are included in the capital projects fund. B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six generic fund categories and three broad fund types as follows: Governmental Funds General Fund —The General Fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds — Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds —Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Capital Project Funds — Capital Project Funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). Proprietary Funds Enterprise Funds — Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises -where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and /or net income is (Continued) Page 21 CITY OF EDINA, MINNESOTA appropriate for capital maintenance, public policy, management control, accountability or other purposes. Fiduciary Funds Agency Funds -- Agency Funds are used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/ or other funds. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Account Groups The General Fixed Assets Account Group is used to account for fixed assets not accounted for in proprietary or trust funds. The Long -Term Debt Account Group is used to account for general long -term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Measurement Focus All Governmental Funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is considered a measure of "available spendable resources." Governmental Fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in Governmental Fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in Governmental Funds. Public domain (infrastructure) general fixed assets consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual cost is not available. Donated fixed assets are valued at their estimated fair market value on the date donated. Long -term liabilities expected to be financed from governmental funds are accounted for in the General Long -term Debt Account Group, not in the Governmental Funds. The exception to this general rule is for revenue bonds, which are accounted for in Enterprise Funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. (Continued) Page 22 CITY OF EDINA, MINNESOTA Because of their spending measurement focus, expenditure recognition for Governmental Fund types is limited to exclude amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long -term amounts are not recognized as governmental fund type expenditures or fund liabilities. They are instead reported as liabilities in the General Long -term Debt Account Group. All Proprietary Funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that current and long -term assets and current and long -term liabilities associated with their activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. The operating statements of the funds present increases (revenues) and decreases (expenses) in net total assets. Depreciation of exhaustible fixed assets used by Proprietary Funds is charged as an expense against their operations. Accumulated depreciation is reported on Proprietary Fund balance sheets. Depreciation has been provided over the estimated useful lives using the straight -line method. The estimated useful lives are as follows: Buildings 20 -30 years Equipment and machinery 5 -10 years Distribution systems, sewer mains and lift stations 50 years The City follows the practice of including, as part of property, plant and equipment of these funds, the costs of distribution systems, sewer mains and lift stations which are paid for by assessments against benefited property. D. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The Governmental Fund types are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. °Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The government considers all revenues available if they are collected within 60 days after year end. Major revenues that are determined to be susceptible to accrual include property taxes, special assessments, intergovernmental revenues, and interest on investments. Major revenues that are determined not to be susceptible to accrual because they are not available soon enough to pay liabilities of the current period or are not objectively measurable include delinquent property taxes and assessments, licenses, permits, fines and forfeitures. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on long -term debt which is recognized when due. (Continued) Page 23 CITY OF EDINA, MINNESOTA The Proprietary Fund types are accounted for using the accrual basis of accounting. Their revenues are recognized when earned and their expenses are recognized when incurred. Unbilled utility service receivables are recorded at year end. During the course of normal operations, the City has numerous transactions between funds including expenditures and transfers of resources to provide services, construct assets and service debt. The Governmental and Proprietary Funds' financial statements generally reflect such transactions as transfers. Nonrecurring or nonroutine transfers of equity between funds are recorded as equity transfers and, accordingly, are reported as additions or deductions from fund balances of Governmental Fund types. E. Budgets and Budgetary Accounting The City adopts an annual budget for the General Fund and the Community Development Block Grant Fund of the Special Revenue Fund. The budgets are prepared on the modified accrual basis of accounting. The City follows these procedures in establishing the budgetary data reflected in the financial statements: 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 the General Fund and the Community Development Block Grant Fund of the Special Revenue Fund are adopted on a basis consistent with generally accepted accounting principles (GAAP). 6. The City Council may authorize transfers of budgeted amounts between departments. 7. Reported budget amounts are as originally adopted or as amended by Council - approved supplemental appropriations and budget transfers. 8. Expenditures may not legally exceed appropriations by department unless offset by increases in revenues. All unencumbered appropriations lapse at year end. F. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. (Continued) Page 24 CITY OF EDINA, MINNESOTA Encumbrances outstanding at year -end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year -end are completed. Encumbrances outstanding at year -end do not constitute expenditures or liabilities, and therefore, are presented in the financial statements as reservations of fund balances. Encumbrances are recorded in the Construction Funds which are part of the Capital Projects Fund. G. Cash Cash balances from all funds are pooled together and invested to the maximum extent possible. This provides the City to invest higher amounts of cash at more favorable rates. This also allows certain funds to generate a temporary cash overdraft. Interest earned is allocated as determined by the Investment Advisory Committee. H. Statement of Cash Flows For purposes of the statement of cash flows, the City's Enterprise Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. 1. Inventory Inventory is stated at the lower of cost (determined on a first in, first out basis) or market value. J. Compensated Absences It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Sick leave is payable only when used and consequently, is not recorded as a liability. Vacation pay is payable when used or upon termination of employment (up to 240 hours). Vacation pay is accrued when incurred in Proprietary Funds and reported as a liability. For Governmental Funds, vacation pay that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the Fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources are reported in the General Long -term Debt Account Group. No expenditure is reported for these amounts. The amount of accrued vacation pay at December 31, 1995 reported in the Governmental Funds, Proprietary Funds and General Long -term Debt Account Group was $4,297, $109,069 and $485,923, respectively. K. Memorandum Only -Total Column Total columns on the combined statements are captioned memorandum only to indicate that they are presented only to facilitate financial analysis. The columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of these data. (Continued) Page 25 CITY OF EDINA, MINNESOTA L. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data have not been presented in all statements because their inclusion would make certain statements unduly complex and difficult to understand. M. Reclassifications Certain 1994 amounts were reclassified to conform to the 1995 presentation. N. GASB Statement No. 20 In September 1993, the GASB released Statement No. 20 (Statement), "Accounting and Financial Reporting for the Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting." The Statement provides that proprietary and similar trust funds may apply all GASB pro- nouncements, as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements; Statements and Interpretations of the Financial Accounting Standards Board (FASB), Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedure. The City has elected to apply only FASB, APB, and ARB materials issued on or before November 30, 1989 to the Enterprise Funds. (2) Cash and Investments Cash In accordance with Minnesota Statutes, the City maintains deposits at various financial institutions. Deposits are carried at cost plus accrued interest. Minnesota Statutes require that all City deposits be protected by an insurance surety bond or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). At December 31, 1995, the City was in compliance with Minnesota Statutes regarding pledged collateral. The checking accounts and change funds are included as cash on the balance sheet. Cash at December 31, 1995 is as follows: Checking accounts Change funds Carrying Bank Amount balance $ 6,529 1,283,170 10,880 0 $ 17.409 1.283.170 (Continued) Page 26 CITY OF EDINA, MINNESOTA Investments The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies; (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above; (c) General obligations in the State of Minnesota or any of its municipalities; (d) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; (e) Commercial paper issued by United States corporations or their Canadian Subsidiaries, of the highest quality, and maturing in 270 days or less; (f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies or their subsidiaries; (g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers; and (h) Futures contracts sold under authority of Minnesota Statutes 471.56, subdivision 5. The City's investments are stated at cost, except for commercial paper which is stated at amortized cost and investments with plan administrators and fiscal agents which are stated at market value. The City's investments are categorized in the following manner: Category 1— Includes investments that are insured or registered for which the securities are held by the City or its agent in the City's name. Category 2— Includes uninsured and unregistered investments for which the securities are held by the counter party's trust department or agent in the City's name. (Continued) Page 27 CITY OF EDINA, MINNESOTA The investment balances at December 31, 1995 were as follows: Certificates of deposit Commercial paper Government securities: United States Treasury Notes Federal National Mortgage Association Government National Mortgage Association Federal Home Loan Mortgage Corporation Federal Home Loan Bank Federal Farm Credit Student Loan Marketing Association SBA Pool Money market investments Total investments Carrying amount Category Category Market 1 2 value $ 1,137,690 $ 0$ 1,137,687 0 10, 842, 616 10, 866, 468 0 3,391,110 3,595,981 0 3,234,036 3,234,911 0 519,980 538,379 0 2,377,160 2,354,626 0 697,608 703,282 0 1,200,875 1,201,881 0 499,531 500,515 0 625,518 628,866 0 1,393,273 1,393,273 In accordance with Minnesota Statutes, the City invests in various mortgage- backed securities, such as collateralized mortgage obligations. Included in the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation investments are approximately $1,383,887 (market value of approximately $1,356,100) of collateralized mortgage obligations, debt instruments issued by special purpose entities which are secured by pools of mortgage loans or other mortgage- backed securities. Payments of interest and principal on underlying collateral provide the funds to pay debt service on the collateralized mortgage obligation. The Federal National Mortgage Association is a federally chartered corporation and guarantees timely payment and principal to security holders. The cash flows and yields on collateralized mortgage obligations are sensitive to the rate of principal payments (including prepayments) on the underlying collateral. For example, a rapid or slow rate of principal payments on the underlying collateral may have a material adverse effect on the yield to maturity of the collateralized mortgage obligations. The City also has the following unclassified cash and investments: Carrying Market Amount Value Cash and investments with plan administrators $ 7,578,164 7,578,164 Cash and investments with fiscal agents 41,670,826 41,670,826 $ 49,248,990 49,248,990 (Continued) (3) (4) CITY OF EDINA, MINNESOTA Property Taxes Page 28 The City Council annually adopts a tax levy and certifies it to the County for collection in October of each 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 of the following year 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. These taxes are collected by the County and remitted to the City on or before July 5 and December 4 of the same year. Additionally, delinquent collections in November and December are remitted to the City each January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. 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 received by the City in July and December are recognized as revenue for the current year. Taxes not collected by the County by December 31 (remitted to the City by the following January) are classified as delinquent and unremitted taxes receivable. The delinquent receivables are fully offset by deferred revenue because they are not available to finance current expenditures. Fixed Assets A summary of changes in general fixed assets during 1995 is as follows: Land Land improvements Buildings Furniture and fixtures Vehicles Sidewalks Leasehold improvements Miscellaneous equipment Park and playground equipment Highway equipment Police equipment Fire equipment Election equipment Engineering equipment Traffic signals Tools Parks Construction in progress Total Balance January 1 Additions Balance Deletions December 31 $ 17,263,863 $ 0 $ 0 $17,263,863 10,505,439 0 0 10,505,439 19,570,313 28,998 0 19,599,311 659,560 98,982 (32,695) 725,847 1,257,624 481,936 (99,473) 1,640,087 280,894 0 0 280,894 190,330 0 0 190,330 419,575 46,225 (610) 465,190 625,879 41,727 (8,451) 659,155 3,204,647 246,466 (73,860) 3,377,253 688,478 18,627 (2,534) 704,571 1,284,382 25,528 (3,867) 1,306,043 138,114 0 0 138,114 103,067 3,368 (6,477) 99,958 116,184 0 0 116,184 5,812 0 0 5,812 7,150,738 174,706 0 7,325,444 0 1,068,623 0 1,068,623 (Continued) CITY OF EDINA, MINNESOTA A summary of proprietary fund fixed assets at December 31,1995 is as follows: Land Golf course Land improvements Water distribution system Sewer collection system Major recreation facilities Major water facilities Buildings — liquor stores Furniture, fixtures and equipment Vehicles Lease property - capital lease Construction in progress Less accumulated depreciation Net book value (5) Long -term Debt Bonded Debt Page 29 Enterprise fund $ 1,088,965 4,586,927 1,258,250 9,955,844 11, 925,158 7,318,980 14,275,713 965,971 3,009,412 344,135 474,580 27,575 55,231,510 (21,948,288) The City has three types of bonded debt outstanding at December 31,1995: tax increment bonds, improvement bonds and revenue bonds. The first type of bond is payable solely from tax increment monies with any deficiency to be provided for by general property taxes. The second and third types are payable primarily from special assessments and enterprise revenue, respectively, with any deficiency to be provided for by general property taxes. The bonded debt outstanding is summarized as follows: Tax Increment Bonds Improvement Bonds Revenue Bonds Total Balance December 31, Maturities Interest rates 1995 1995-2009 4.90 - 10.25% 1995-2001 4.00 - 7.10 1995-2013 3.80 - 8.70 (Continued) $ 85,385,000 1,345,000 15,045,000 Page 30 CITY OF EDINA, MINNESOTA Changes in long -term debt during the year were as follows: Balance $ 650,000 Balance January 1, Issued/ Redeemed/ December 31, 1995 increases decreases 1995 Tax Increment Bonds $ 86,410,000 0 1,025,000 85,385,000 Improvement Bonds 2,815,000 0 1,470,000 1,345,000 Revenue Bonds 15,390,000 $ 104.615.000 0 345,000 0 2.840.000 15,045,000 101.775.000 The City had the following revenue bonds outstanding at December 31, 1995: Golf Course Bonds, Series 1985 $ 650,000 Recreation Facility Bonds, Series 1988 2,370,000 Recreation Facility Bonds, Series 1989 1,820,000 Recreation Facility Bonds, Series 1992A 3,975,000 Recreation Refunding Bonds, Series 1992C 4,650,000 Utility Refunding Bonds, Series 1992D 1,580,000 $ 15.045.000 The Golf Course Bonds are general obligation revenue bond issues payable from the Golf Course Enterprise Fund with any deficiency to be provided first from Liquor Fund revenue and then from general property taxes. The Recreation Facility Bonds are general obligation revenue bond issues payable from the Golf Course, Ice Arena and Swimming Pool Funds with any deficiency to be provided first from Liquor Fund revenue and then from general property taxes. The Utility Bonds are general obligation revenue bond issues payable from the Utility Fund and then from general property taxes. During 1992, the City issued $17,930,000 in General Obligation Tax Increment Refunding Bonds, Series 1992B, to replace the Tax Increment Bonds, Series 1988 and Series 1989. The 1988 and 1989 bonds will be refunded by means of a "crossover" refunding. The refunding issue proceeds, net of issuance costs, were placed in an irrevocable trust and invested in government securities. These securities are structured to pay debt service on the new bonds through the call date of the refunded bonds, at which time the escrow account will crossover and pay the remaining principal on the original issues by calling all the remaining bonds. From 1992 to 1998 both issues will be reported in the City's financial statements. The refunding was to take advantage of lower interest rates in effect at the time of the transaction. The cumulative savings to the City resulting from the refunding will be $896,416, and the net present value savings is $589,361. The City issued $4,650,000 General Obligation Recreational Facility Refunding Bonds, Series (Continued) Page 31 CITY OF EDINA, MINNESOTA 1992C to replace the Golf Course and Recreational Facility Bonds of 1985, 1988 and 1989. These will be refunded by means of "crossover" refunding in the years 1996 and 1998. The cumulative savings will be $199,462, and the net present value savings is $113,788. During 1993, the City issued $19,580,000 General Obligation Tax Increment Refunding Bonds to replace the Tax Increment Bonds Series 1986A, Series 1986B and Series 1990 and Tax Increment Refunding Bonds Series 1989. These will be refunded by means of "crossover" refunding as described above in the years 1996 and 1997. The cumulative savings will be $1,277,877, and the net present value savings is $944,442. The annual requirements to amortize all debt outstanding as of December 31, 1995, including interest payments of $37,390,550 are as follows: Year ending Tax December 31 Increment Improvement Revenue Total 1996 $ 21,799,741 508,895 2,065,637 24,374,273 1997 9,493,031 224,425 1,501,508 11,218,964 1998 23,633,034 216,008 5,420,334 29,269,376 1999 5,241,492 202,250 1,312,163 6,755,905 2000-2013 56,427,500 $ 116.594.798 367,760 1.519.338 10,751,772 21.051.414 67,547,032 139.165.550 Legal Debt Margin Minnesota Statutes, Chapter 475, as amended, provide that the city shall not incur or be subject to a net debt in excess of 2% of the market value of taxable property. At December 31, 1995, the legal debt margin was $76,995,932 calculated as follows: Market value Debt limit - 2% of market value Amount of general obligation debt Less: Tax increment bonds Improvement bonds Revenue bonds Total deductions Legal debt margin $ 85,385,000 1,345,000 15,045,000 $ 3,849,796,600 $ 101,775,000 101,775,000 (Continued) 76,995,932 76,995,932 CITY OF EDINA, MINNESOTA Long -term Debt - Other Page 32 The City is the administering authority for the following tax increment finance districts. Tax capacity values are for taxes payable in 1995. 50th and France -No. 1200, a redevelopment district established in 1974 pursuant to Minnesota Statutes with a termination date of 2009. Original tax capacity value $ 289,708 Current tax capacity value 1,456,854 Captured tax capacity value: Retained by authority 1,167,146 Shared with other taxing districts 0 General obligation tax increment bonds issued 8,412,800 Total loans incurred 0 Amounts redeemed 2,300,000 Outstanding bonds and loans at December 31, 1995 $ 6.112.800 Southeast Edina Redevelopment District -No. 1201, a redevelopment district established in 1977 pursuant to Minnesota Statutes with a termination date of 2009. Original tax capacity value $ 228,319 Current tax capacity value 2,200,215 Captured tax capacity value: Retained by authority 1,971,896 Shared with other taxing districts 0 General obligation tax increment bonds issued 36,546,600 Total loans incurred 0 Amounts redeemed 6,200,000 Outstanding bonds and loans at December 31, 1995 $ 30.346.600 Grandview Area Redevelopment District -No. 1202, a redevelopment district established in 1984 pursuant to Minnesota Statutes with a termination date of 2010. Original tax capacity value Current tax capacity value Captured tax capacity value: Retained by authority Shared with other taxing districts General obligation tax increment bonds issued Total loans incurred Amounts redeemed $ 250,007 763,142 513,135 0 3,370,600 0 650,000 Outstanding bonds and loans at December 31, 1995 (Continued) Page 33 CITY OF EDINA, MINNESOTA Southeast Edina Redevelopment District -No. 1203, a redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination date of 2016. Original tax capacity value $ 269,717 Current tax capacity value 1,313,500 Captured tax capacity value: Retained by authority 1,043,783 Shared with other taxing districts 0 General obligation tax increment bonds issued 46,930,000 Total loans incurred 0 Amounts redeemed 725,000 Outstanding bonds and loans at December 31, 1995 $ 46.205.000 Economic Development District -No. 1204, a development district established in 1989 pursuant to Minnesota Statutes with a termination date of 1997. Original tax capacity value $ 10,217,848 Current tax capacity value 10,610,023 Captured tax capacity value: Retained by authority 392,175 Shared with other taxing districts 0 General obligation tax increment bonds issued 0 Total loans incurred 0 Amounts redeemed 0 Outstanding bonds and loans at December 31, 1995 $ 0 70th and Cahill Redevelopment District -No. 1207, a redevelopment district established in 1990 pursuant to Minnesota Statutes with a termination date of 2000. Original tax capacity value $ 331,829 Current tax capacity value 406,465 Captured tax capacity value: Retained by authority 74,636 Shared with other taxing districts 0 General obligation tax increment bonds issued 0 Total loans incurred 94,692 Amounts redeemed 88,329 Outstanding bonds and loans at December 31, 1995 $ 6363 (Continued) Page 34 CITY OF EDINA, MINNESOTA (6) Retirement Plans A. Defined Benefit Pension Plans During 1995, the city adopted GASB Statement No. 27, "Accounting for Pensions by State and Local Government Employers", which established standards for the measurement, recognition, and display of pension expense and related liabilities, assets and note disclosures in the financial reports of state and local government employers. Adoption of the statement had no financial impact on the City. The City is involved in two pension programs (a and b) as follows: (a) Defined Benefit Pension Plans - Statewide: Plan Description The City contributes to the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF), which are cost - sharing multiple - employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERF and PEPFF provide retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by State Statute and vest after three years of credited service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by contacting PERA. Funding Policy PERF and PEPFF plan members are required to contribute 4.23% and 7.60% of their annual covered salary, respectively, and the City is required to contribute at an actuarially- determined rate. The current rate is 4.48% and 11.40% for PERF and PEPFF of annual covered payroll, respectively. The contribution requirements of plan members and the City are established and may be amended by State Statute. The City's contributions to PERF and PEPFF for the years ended December 31, 1995, 1994, and 1993 were equal to the required contributions for each year, as follows: 1995 1994 1993 PERF $333,775 319,014 325,651 PEPFF $465,061 436,806 451,379 (b) Federal Insurance Contribution Act Approximately 98% of the City employees are covered by the Federal Insurance Contribution Act (Social Security). The contribution rate for 1995 was 6.2% and was based on the first $61,200 paid. In 1995 the City also contributed 1.45% of the contribution rate based on the first $135,000 paid employees' wages for (Continued) Page 35 CITY OF EDINA, MINNESOTA mandatory Medicare. The cost of Social Security and mandatory Medicare in 1995 and 1994 was $622,714 and $589,487 respectively. (7) Deferred Compensation Plan The City offers its employees five deferred compensation plans which are in accordance with Internal Revenue Code Section 457. The plans are Aetna, International City Manager's Association (ICMA), Great West, T. Rowe Price and Minnesota State Retirement Systems (MSRS). The plans permit employees to defer a portion of their salary until future years. The deferred compensation is not available until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City, subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. Plan assets of $7,578,164 at December 31,1995 are recorded at fair market value and are shown in the Agency Funds on the combined balance sheet. It is the opinion of the City's management that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. (Continued) Page 36 CITY OF EDINA, MINNESOTA (8) Segment Information for Enterprise Funds The City maintains Enterprise Funds for utility (water and sewer) services and liquor facilities. Individual funds are also maintained for other enterprise operations designated below as "Other Enterprise Funds" which are recreational in nature such as: swimming pool, golf course, arena, gun range, art center and Edinborough Park. Segment information for the year ended December 31,1995 is as follows: (Continued) Other Total Golf Enterprise Enterprise utility Liquor Course Arena Funds Funds Sales $ 0 6,004,554 0 0 0 6,004,554 Operating revenues 7,591,331 0 2,533,115 739,288 1,075,276 11,939,010 Depreciation 672,376 47,615 477,169 143,897 194,998 1,536,055 Operating income (loss) 826,583 580,500 229,676 69,170 (791,313) 914,616 Nonoperating revenues (expenses), net (79,722) (177) (446,826) (164,588) 424,613 (266,700) Operating transfers 0 (483,000) (117,583) 107,170 480,413 (13,000) in (out) Net income (loss) 746,861 97,323 (334,733) 11,752 186,580 707,783 Property additions 532,018 53,714 267,262 68,055 49,452 970,501 Networking capital 3,997,502 588,253 1,405,848 1,015,476 (1,057,515) 5,949,564 Bonds payable 1,580,000 0 9,136,775 3,678,225 650,000 15,045,000 Total assets 25,250,764 1,422,349 11,016,368 3,846,374 1,983,266 43,519,121 Total retained earnings (deficit) 23,415,871 1,198,872 387,275 (1,171,248) (729,505) 23,101,265 (Continued) Page 37 CITY OF EDINA, MINNESOTA (9) Due From To Other Funds Interfund receivables and payables as of December 31,1995 were as follows: Interfund Interfund Fund receivables payables General (including amount due to Edina Housing and Redevelopment Authority of $2,188,146) Special Revenue: Community Development Block Grant Communications Debt Service: General Debt Service Improvement Bond Redemption II Capital Project: Construction Fund Housing and Redevelopment Authority of Edina Revolving Fund Enterprise: Utilities Liquor Swimming Pool Golf Course Arena Gun Range Art Center Edinborough Park Agency: Police Seizure $ 5,185,830 2,461,010 0 36,066 0 65,687 200,000 0 380,922 0 0 5,427,783 2,188,146 0 962,493 0 1,825,499 0 247,399 0 20,295 0 0 1,048,932 0 858,454 0 8,663 0 39,550 72,863 1,123,824 0 13,478 Z 11.083.447 (Continued) Page 38 CITY OF EDINA, MINNESOTA (10) Reserved or Designated Fund Equity The following fund equity balances as of December 31, 1995 have been reserved or designated for the reasons noted below: General Fund: Reserved for equipment replacement $ 1,015,424 Reserved for insurance claims 355,765 Unreserved — designated for dedicated funds 6,993,805 Debt Service Funds: Reserved for debt service 37,641,962 Capital Projects: Reserved for encumbrances 65,211 Reserved for special projects 26,458 Enterprise Funds: Reserved for debt service 1,607,120 Total fund equity reservations and designations $ 47,705,745 (11) Fund Deficits The following funds had deficit fund balances or retained earnings at December 31,1995: Capital Project Funds: Construction Fund $(5,547,467) Enterprise Funds: Swimming Pool Fund (27,603) Arena Fund (1,171,248) Edinborough Park Fund (890,349) The construction fund deficit will be covered in future periods by special assessment collections, tax increments, operating revenues, or State and bond proceeds. The enterprise fund deficits will be covered in future periods by operating revenues, and operating transfers. (12) Contingencies The Minnesota Tax Court issued a decision in November 1995, with respect to the Assessor's Estimated Market Value for a portion of Southdale Shopping Center. This decision affected valuations for property taxes payable in 1991, 1992 and 1993. Based upon this decision, the City of Edina has been ordered to refund property taxes, interest and other related costs in the amount of $1,439,759 to the owners of the Southdale Shopping Center. The City will use current available resources to refund the property taxes and has reduced tax revenue and increased taxes payable for $1,439,759 in the Capital Projects Fund. The owners of the Southdale Shopping Center have also filed a claim for the property taxes payable and interest in 1994 and 1995. The City will vigorously defend the claim. The City Attorney has indicated that other existing and pending lawsuits, claims and other (Continued) Page 39 CITY OF EDINA, MINNESOTA actions in which the City is a defendant are either covered by insurance or will not have a material adverse effect on the financial condition of the City. (13) Capital Lease The City has recorded a capital lease for equipment installed in the Arena, Golf Course and Edinborough Park. The following is a schedule by years of future minimum lease payments under the capital lease together with the present value of the net minimum lease payments as of December 31, 1995: Year ending December 31: 1996 $ 66,629 1997 64,761 1998 67,811 1999 65,511 2000 63,111 Later years 233,469 Total minimum lease payments 561,292 Less: Amount representing interest (111,293) Present value of net minimum lease payments $ 449.999 (14) Related Party Transactions During the past fiscal year, one of the several depository institutions with which the City maintained cash balances and conducted transactions, was considered a related party since a current elected member of the City Council is employed as an officer of this institution. (15) Fund Equity -- Contributed Capital The following is a summary of the changes in contributed capital: Contributed capital, January 1, 1995 Add: Contribution of fixed assets Less: Transfer of depreciation to contributed capital Contributed capital, December 31, 1995 (16) Risk Management Enterprise Edinborough Park $ 772,573 X (72,867) Effective January 1, 1995, The City adopted GASB Statement No. 10, °Accounting and Financial Reporting for Risk Financing and Related Insurance (Continued) Page 40 CITY OF EDINA, MINNESOTA Issues ". Statement No. 10 requires that a single fund be used to account for risk financing activities and that the fund should be either the general fund or an internal service fund. In accordance with this statement, the City reports its insurance claims in the general fund. Adoption of the statement had no Financial impact on the City. 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, automobile, liability and pollution coverage are provided through an insurance company. The City pays an annual premium for this coverage and all claims are paid from the plan. If claims exceed the premium paid into the plan, the City is liable for the deficiency, up to the annual maximum. The City is not subject to a deductible for workers compensation, automobile, liability and pollution coverage, and has an annual maximum of $775,462 in 1995. Property coverage is also provided by an insurance company. The City pays an annual premium for this coverage, and all claims are paid for by the plan. The City has a $1,000 deductible per occurrence, with no annual maximum. Police professional insurance coverage is provided by an insurance company. The City pays an annual premium for the coverage, and has a $10,000 deductible per occurrence, with a $500,000 annual maximum. Public official liability insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $15,000 deductible per occurrence, with a $1,000,000 annual maximum. Inland Marine contractor's equipment insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $1,000 deductible and $100,000 maximum per occurrence, with a $1,904,460 annual maximum. Boiler and machinery insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $2,500 deductible per occurrence, with a $1,000,000 annual maximum. Ambulance professional liability insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and a $500,000 annual maximum. A public employee's blanket bond and a public official bond are provided by an insurance company. The City pays an annual premium for this coverage, and is subject to limits of $500 to $50,000 per individual for the public official bond, and a $50,000 annual maximum for the public employee's blanket bond. The plans cover all losses above the per occurrence and annual deductibles through a reinsurance policy. The City has reserved $322,071 in the general fund to finance potential uninsured loss. Settlement claims have not exceeded insurance coverage for either of the past two years. Page 41 GENERAL FUND The General Fund accounts for the revenues and expenditures used to carry out basic governmental activities of the City such as general government, public safety, public works, and parks and recreation. Revenue is recorded by source (e.g., taxes, licenses and permits, intergovernmental revenues, fines and forfeitures, charges for services). General Fund expenditures are made primarily for current day -to -day operations and operating equipment. This fund accounts for all financial transactions not properly accounted for in another fund. Page 42 CITY OF EDINA, MINNESOTA General Fund Balance Sheet December 31, 1995 (with compartive amounts for December 31, 1994) Assets Petty cash and change funds Cash Investments Accrued interest receivable Taxes receivable: Delinquent Allowance for uncollectible taxes Accounts receivable Due from other funds Due from other governments Prepaid expenses Total assets Liabilities and Fund Balance Liabilities: Salaries payable Accounts payable Due to other governments Due to other funds Compensated absences payable Total liabilities Fund balance: Reserved Unreserved: Designated Undesignated Total fund balance 1995 1994 $ 1,640 (246,898) 7,351,808 1,688 88,399 (88,399) 361,590 5,185,830 201,631 38,076 $ 12,895,365 169,335 338,514 153,185 2,461,010 3,621 3,125,665 1,371,189 6,993,805 1,404,706 9,769,700 1,640 182,411 8,232,113 15,797 154,482 (154,482) 302,415 7,507,085 93,389 56,667 16,391,517 195,824 295,464 95,438 6,796,375 17,332 7,400,433 1,129,031 6,867,639 994,414 8,991,084 Total liabilities and fund balance $ 12,895,365 16,391,517 CITY OF EDINA, MINNESOTA General Fund Combined Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Other revenues Total revenues Expenditures: Current: General government Public safety Public works Parks Unallocated general Other Capital outlay: General government Public safety Public works Parks Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in (out): Liquor Fund Capital Project Funds Parkland dedication Transfer dedicated funds Reserve for construction Total other financing sources (uses) 1995 Variance - favorable Budget Actual (unfavorable) $ 11,080,898 921,710 1,512,120 1,305,000 425,000 95,500 15,340,228 2,124,983 7,178,427 3,326,169 1,890,018 277,670 0 21,130 369,807 396,413 88,452 15,673,069 (332,841) 383,000 (50,159) 0 0 0 332,841 Excess of revenues and other financing sources over expenditures and other financing uses $ 0 Fund balance - January 1 Fund balance - December 31 11,152,197 1,070,352 1,527,991 1,510,470 545,996 126,980 15,933,986 2,069,527 7,251,129 3,160,831 1,850,610 309,152 (131,459) 21,169 294,355 395,767 93,296 15,314,377 619,609 383,000 (50,159) 193,766 (370,000) 2,400 159,007 778,616 8,991,084 $ 9,769,700 71,299 148,642 15,871 205,470 120,996 31,480 593,758 55,456 (72,702) 165,338 39,408 (31,482) 131,459 (39) 75,452 646 (4,844) 358,692 Page 43 1994 Actual 10,698,748 947,122 1,512,495 1,251,603 322,992 127,972 14,860,932 2,097,521 6,774,592 2,985,893 1,725,641 180,589 (191,253) 20,367 303,513 304,112 72,459 14,273,434 952,450 587,498 0 380,000 0 (117,000) 193,766 35,055 (370,000) (120,000) 2,400 2,400 (173,834) 180,455 778,616 767,953 8,223,131 $ 8,991,084 CITY OF EDINA, MINNESOTA General Fund Schedule of Revenues - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) Taxes: General property tax Penalties and interest Total taxes Licenses and permits Intergovernmental: Federal aid State grants: Homestead credit State highway aid Police aid County grants: Health programs Total intergovernmental Page 44 1995 1994 Variance - favorable Budget Actual (unfavorable) Actual $ 11,065,898 11,131,600 65,702 10,697,392 15,000 20,597 5,597 1,356 11,080,898 11,152,197 71,299 10,698,748 Charges for services: Engineering and clerical charges Assessing searches Planning fees False alarms Police Services Hazmet Fee Housing and Redevelopment Authority Charges to other funds Ambulance service Registration fee Laboratory fees Maint Assmt - 50th & France Housing Foundation Contract Total charges for services Fines and forfeitures Other Revenues: Interest on investments Sale and rental of property Donations Other Total other revenues Total revenues 921,710 1,070,352 148,642 947,122 30,000 64,815 15,000 7,622 (7,378) 9,963 994,020 1,002,263 8,243 994,020 140,000 140,000 0 140,556 250,000 264,375 14,375 254,007 113,100 113,731 631 113,949 1,512,120 1,527,991 15,871 1,512,495 140,000 132,268 (7,732) 93,511 2,000 654 (1,346) 635 12,500 13,653 1,153 12,606 47,500 48,717 1,217 43,083 75,000 94,500 19,500 0 3,000 445 (2,555) 435 180,000 180,000 0 175,000 135,000 135,000 0 131,004 577,000 780,387 203,387 670,856 91,000 81,158 (9,842) 80,887 12,000 11,352 (648) 13,362 10,000 10,000 0 10,000 20,000 22,336 2,336 20,224 1,305,000 1,510,470 205,470 1,251,603 425,000 545,996 120,996 322,992 35,000 14,948 (20,052) 21,417 30,000 64,815 34,815 74,338 500 1,278 778 325 30,000 45,939 15,939 31,892 95,500 126,980 31,480 127,972 $ 15,340,228 15,933,986 593,758 14,860,932 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) General government: Mayor and council: Personal Services Contractual services Commodities Central services Total mayor and council Administration: Personal services Contractual services Commodities Central Services Capital Outlay Total administration Planning: Personal services Contractual services Commodities Central Services Capital Outlay Total planning Finance: Personal services Contractual services Commodities Central Services Capital Outlay Total finance Election: Personal services Contractual services Commodities Central Services Total election 1995 Page 45 1994 Actual 27,255 3,470 633 30,876 62.234 426,538 424,794 vanance- 426,246 82,300 favorable Budget Actual (unfavorable) $ 27,450 27,448 2 3,000 3,394 (394) 1,300 742 558 31,308 31,308 0 63,058 62,892 166 Page 45 1994 Actual 27,255 3,470 633 30,876 62.234 426,538 424,794 1,744 426,246 82,300 90,068 (7,768) 80,609 950 799 151 2,339 128,304 128,304 0 123,660 8,400 12,125 (3,725) 6,966 646,492 656,090 (9,598) 639,820 180,843 170,678 10,165 165,195 4,700 3,874 826 4,087 800 171 629 79 56,184 56,184 0 53,220 2,914 0 2,914 985 245,441 230,907 14,534 223,566 255,159 57,000 550 69,636 5,460 387,805 17,194 8,000 500 9,840 35,534 249,870 58,309 813 69,636 8,401 387.029 10,904 2,962 0 9,840 23.706 5,289 (1,309) (263) 0 (2,941) 776 6,290 5,038 500 0 11,828 241,265 60,429 449 65,988 9,747 377,878 43,774 8,683 3,852 9,180 65,489 (Continued) Page 46 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) 1995 1994 Variance- favorable Budget Actual (unfavorable) Actual Assessing: Personal services $ 282,415 279,315 3,100 270,743 Contractual services 40,800 35,364 5,436 33,353 Commodities 1,100 1,153 (53) 915 Central Services 83,112 83,112 0 79,752 Capital Outlay 4,356 643 3,713 2,668 Total assessing 411,783 399,587 12,196 387,431 Legal and court services: Contractual Services 356,000 330,485 25,515 361,471 Total general government 2,146,113 2,090,696 55,417 2,117,889 Public Safety: Police protection: Personal services 2,871,019 2,776,819 94,200 2,618,794 Contractual services 171,680 159,008 12,672 121,228 Commodities 37,360 38,966 (1,606) 36,328 Central Services 1,001,636 1,001,636 0 931,680 Capital Outlay 200,588 187,085 13,503 168,565 Total police protection 4,282,283 4,163,514 118,769 3,876,595 Fire protection: Personal services 1,694,607 1,840,064 (145,457) 1,719,155 Contractual services 81,717 90,428 (8,711) 83,207 Commodities 43,679 58,667 (14,988) 47,809 Central Services 494,832 494,832 0 461,016 Capital Outlay 142,656 54,469 88,187 120,118 Total fire protection 2,457,491 2,538,460 (80,969) 2,431,305 Civil defense: Personal services 17,797 18,823 (1,026) 16,763 Contractual services 6,420 5,681 739 4,418 Commodities 1,090 215 875 1,272 Capital Outlay 6,485 11,033 (4,548) 0 Total civil defense 31,792 35,752 (3,960) 22,453 (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) Animal Control Personal services Contractual services Commodities Central Services Capital Outlay Total animal control Public Health: Personal services Contractual services Commodities Central Services Capital Outlay Total public health Inspections: Personal services Contractual services Commodities Central Services Capital Outlay Total inspections: Total public safety Public works: Administration Personal services Contractual services Central services Total administration Engineering: Personal services Contractual services Commodities Central Services Capital Outlay Total engineering 1995 Variance- favorable Budget Actual (unfavorable) $ 33,734 6,400 3,120 12,588 5,661 61,503 144,945 146,570 3,700 57,564 4,580 357.359 257,234 7,500 4,250 78,984 9,837 357,805 7.548.233 98,963 4,250 30,396 133.609 312,054 12,800 12,200 105,108 49,727 491,889 19,991 6,590 2,339 12,588 15,974 57.482 138,588 146,920 3,775 57,564 17,803 364,650 287,972 7,268 3,411 78,984 7,991 385,626 7,545,484 97,433 3,130 30,396 130,959 269,375 37,596 11,567 105,108 43,974 467,620 13,743 (190) 781 0 (10,313) 4,021 6,357 (350) (75) 0 (13,223) (7.291) (30,738) 232 839 0 1,846 (27,821) 2.749 1,530 1,120 0 2.650 42,679 (24,796) 633 0 5,753 24.269 Page 47 1994 Actual 30,998 4,664 1,602 13,020 13,181 63.465 140,986 143,296 3,948 54,960 431 343.621 250,310 10,817 3,104 75,216 1,217 340,664 7,078,103 97,148 4,051 28,920 130,119 291,239 27,581 6,083 103,524 37.701 466,128 (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) Supervision and overhead: Personal services Contractual services Commodities Central services Total supervision & overhead Street maintenance: Personal services Contractual services Commodities Central services Total street maintenance Street lighting: Personal services Contractual Services Commodities Total street lighting Street name signs: Personal services Contractual Services Commodities Total street name signs Traffic control: Personal services Contractual services Commodities Total traffic control Bridges: Personal services Contractual services Commodities Total bridges Page 48 671,777 625,320 60,000 73,802 380,000 325,947 arm 77n a5n 77n 46,457 580,789 (13,802) 55,730 54,053 286,113 n AT% ARn I,�CL,4J/ 1995 Do, IUii 1994 500 22,000 variance- 5,756 21,836 374,500 favorable (6,144) Budget Actual (unfavorable) Actual $ 98,997 87,562 11,435 103,728 21,200 20,866 334 30,786 1,000 87 913 1,312 372,504 372,504 0 346,680 493,701 481,019 12,682 482,506 671,777 625,320 60,000 73,802 380,000 325,947 arm 77n a5n 77n 46,457 580,789 (13,802) 55,730 54,053 286,113 n AT% ARn I,�CL,4J/ - 1,410,10to Do, IUii I,S�C,UIL 500 22,000 16,244 5,756 21,836 374,500 380,644 (6,144) 319,533 14,500 5,797 8,703 12,758 411,000 402,685 8,315 354,127 32,000 32,687 (687) 24,740 500 0 500 0 27,500 33,801 (6,301) 32,526 60,000 66,488 (6,488) 57,266 21,000 25,304 (4,304) 26,428 61,000 49,130 11,870 54,858 17,000 19,404 (2,404) 10,965 QQ nnn Q1 RAR 5 1A7 97 751 10,000 7,868 2,132 8,882 500 0 500 0 5,000 908 4,092 6,358 15 5nn R 77A R 77a 15 Tan (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) Retaining walls: Personal services Contractual services Commodities Total retaining walls Sidewalks and ramps: Personal services Contractual services Commodities Total sidewalks and ramps Other expenditures: Capital outlay Total public works Parks: Administration: Personal services Contractual services Commodities Central Services Capital Outlay Total administration Recreation: Athletic activities Skating and hockey Tennis instruction Playground Senior citizens Miscellaneous and special activities Total recreation Page 49 331,694 1995 30,575 1994 18,060 18,754 Variance- 24,894 16,920 18,681 favorable 26,208 Budget Actual (unfavorable) Actual $ 6,000 319 5,681 450 1,000 463 537 0 9,000 3,872 5,128 475 16,000 4,654 11,346 925 36,217 12,180 22,500 24,350 (1,850) 18,029 46,500 38,274 8,226 34,022 23,700 10,353 13,347 16,969 92,700 72,977 19,723 69,020 346,686 351,793 (5,107) 266,411 Z 797 r09 Z AGR IZOO 49r, OoA Z 9ork nnG 331,694 301,119 30,575 288,804 18,060 18,754 (694) 24,894 16,920 18,681 (1,761) 26,208 100,680 100,680 0 96,300 2,771 286 2,485 0 470,125 439,520 30,605 436,206 8,169 6,731 1,438 10,276 33,907 43,564 (9,657) 36,217 12,180 11,271 909 8,137 29,800 30,423 (623) 21,365 18,725 19,752 (1,027) 17,973 9r, nno 9A 4QO rAn 47 7AA lci,ioa (Continued) Page 50 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) Mowing: Personal services 82,500 1995 2,902 1994 Contractual services 0 100 Variance- 399 Commodities 1,122 3,141 favorable 1,983 Total mowing Budget Actual (unfavorable) Actual Maintenance: (Continued) Supervision and overhead: 136,800 157,533 (20,733) 131,503 Personal services $ 89,762 72,557 17,205 64,730 Contractual services 3,100 1,305 1,795 1,837 Commodities 0 368 (368) 146 Central services 368,571 368,571 0 332,220 Total supervision and overhead 461,433 442,801 18,632 398,933 Mowing: Personal services 82,500 79,598 2,902 80,424 Contractual services 0 100 (100) 399 Commodities 1,122 3,141 (2,019) 1,983 Total mowing 83,622 82,839 783 82,806 Special turf care: (Continued) Personal services 136,800 157,533 (20,733) 131,503 Contractual services 10,400 2,475 7,925 6,545 Commodities 31,620 26,668 4,952 23,599 Total special turf care 178,820 186,676 (7,856) 161,647 Forestry: Personal services 76,000 84,252 (8,252) 92,198 Contractual services 36,300 15,764 20,536 50,101 Commodities 17,340 7,710 9,630 7,384 Total planting and trees 129,640 107,726 21,914 149,683 Litter removal: Personal services 11,300 12,263 (963) 11,547 Contractual services 6,000 4,512 1,488 5,121 Commodities 7,000 3,705 3,295 2,905 Total litter removal 24,300 20,480 3,820 19,573 (Continued) Page 51 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) 1995 1994 Variance- favorable Building maintenance: Personal services Contractual services Commodities Total Building maintenance Paths and hard surfaces: Personal services Contractual services Commodities Total paths and hard services Skating rinks: Personal services Commodities Total skating rinks Total maintenance Capital outlay Total parks Unallocated general expenditures Human Rights Commmission South Hennepin Human Service council City's share of special assessment Fireworks Contingencies Deer Control Suburban Rate Authority Reserve rebuild Total unallocated general expenditures Central services Total expenditures Budget Actual (unfavorable) Actual $ 94,400 125,310 (30,910) 112,681 107,700 99,678 8,022 98,840 47,660 37,685 9,975 32,780 249,760 262,673 (12,913) 244,301 7,500 10,647 13,900 12,121 1,779 17,781 46,000 65,480 (19,480) 12,168 8,000 9,447 (1,447) 8,619 67,900 87,048 (19,148) 38,568 131,459 (191,254) 96,400 81,415 14,985 79,745 3,000 3,609 (609) 2,464 99,400 85,024 14,376 82,209 1,294,875 1,275,267 19,608 1,177,720 85,681 93,010 (7,329) 72,459 1,978,470 1,943,906 34,564 1,798,102 62,965 63,092 (127) 60,901 17,340 17,345 (5) 14,500 33,700 20,781 12,919 29,623 7,140 7,100 40 7,000 61,200 186,187 (124,987) 60,710 7,500 10,647 (3,147) 4,105 3,825 4,000 (175) 3,750 84,000 0 84,000 0 277,670 309,152 (31,482) 180,589 0 (131,459) 131,459 (191,254) $ 15,673,068 15,314,377 358,691 14,273,434 CITY OF EDINA, MINNESOTA General Fund Schedule of Central Services Expenditures - Budget and Actual Year ended December 31, 1995 (with comparative actual amounts for year ended December 31, 1994) General: Contractual services Commodities Capital outlay Total general City Hall: Personal services Contractual services Commodities Fixed Charges Total City Hall Public Works building: Personal services Contractual services Commodities Fixed charges Capital outlay Total public works building Equipment operations: Personal services Contractual services Commodities Fixed charges Capital outlay Total equipment operations Total central services expenditures Less allocation to other activities Net central services Page 52 264,960 77,500 418,500 206,220 1 Q ran V0U'0Qu 4,677,371 285,427 84,920 437,536 206,220 19,551 1,033,654 4,540,549 (20,467) 1995 (7,420) 1994 (19,036) 413,762 Variance- 184,140 /.271 \ in 712 favorable Budget Actual (unfavorable) Actual $ 3,317,290 3,131,787 185,503 2,903,629 21,000 35,317 (14,317) 26,986 19,717 5,786 13,931 4,966 3,358,007 3,172,890 185,117 2,935,581 59,716 53,929 5,787 60,159 40,000 37,036 2,964 40,875 31,900 25,527 6,373 23,638 14,124 14,124 0 13,740 145,740 130,616 15,124 138,412 60,053 83,500 (23,447) 58,539 80,500 67,795 12,705 68,939 34,000 39,766 (5,766) 38,510 8,880 8,880 0 8,400 4,331 3,448 883 2,597 187,764 203,389 (15,625) 176,985 264,960 77,500 418,500 206,220 1 Q ran V0U'0Qu 4,677,371 285,427 84,920 437,536 206,220 19,551 1,033,654 4,540,549 (20,467) 245,937 (7,420) 84,375 (19,036) 413,762 0 184,140 /.271 \ in 712 k-tI , I U-t) '00,.7JL 136,822 4,189,910 4,677,371 4,672,008 5,363 4,381,164 0 (131,459) 131,459 (191,254) Page 53 SPECIAL REVENUE FUNDS Special revenue funds account for revenues derived from specific taxes or other earmarked revenue sources and are usually required by statute or local ordinance and /or resolution to finance particular functions, or activities of government. The City has the following 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. Communications Fund: This fund was established to account for funds received from the franchise fee of the local cable television service. Page 54 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Balance Sheet December 31, 1995 (with comparative totals for December 31, 1994) Liabilities and Fund Balance Community Liabilities: Development Totals Accounts payable Block Grant Communications 1995 1994 Assets 145 579 724 625 Accounts receivable $ 0 54,541 54,541 51,879 Due from other governments 39,506 0 39,506 31,027 Investments 0 829,012 829,012 818,707 Accrued interest receivable 0 9,204 9,204 14,171 Total assets $ 39,506 892,757 932,263 915,784 Liabilities and Fund Balance Liabilities: Accounts payable 3,275 8,920 12,195 12,477 Salaries Payable 145 579 724 625 Due to other funds 36,066 65,687 101,753 78,429 Due to other governments 20 0 20 0 Compensated absences 0 676 676 2,979 Total liabilities 39,506 75,862 115,368 94,510 Fund balance: Unreserved - undesignated 0 816,895 816,895 821,274 Total liabilities and fund balance $ 39,506 892,757 932,263 915,784 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Revenues: Franchise fees Intergovernmental Federal grants Interest on investments Total revenues Expenditures: Current: Other: Personal services Contractual services Commodities Fixed charges Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Fund balance- January 1 Fund balance- December 31 Community Development Block Grant $ 0 Communications Page 55 Totals 1995 1994 209,519 209,519 206,261 181,767 0 181,767 159,714 0 45,337 45,337 4,220 181,767 254,856 436,623 370,195 8,146 48,917 57,063 79,981 173,621 176,078 349,699 307,581 0 4,760 4,760 8,071 0 21,480 21,480 20,640 0 8,000 8,000 10,718 181,767 259,235 441,002 426,991 0 (4,379) (4,379) (56,796) 0 821,274 821,274 878,070 $ 0 816,895 816,895 821,274 Page 56 DEBT SERVICE FUNDS The Debt Service Funds finance and account for the payment of principal and interest on the General Obligation Redevelopment and Tax Increment Bonds. Provisions are made in the City's general property tax levy for money sufficient to meet the general obligation debt. The Improvement Bond Redemption II Fund was established to finance and account for payment of principal and interest on special assessment bonds issued. Financing of this debt service comes primarily from special assessments levied against benefited properties. CITY OF EDINA, MINNESOTA Debt Service Funds Combining Balance Sheet December 31, 1995 (with comparative totals for December 31, 1994) Assets Cash Cash with fiscal agent Special assessments receivable: Delinquent Current Deferred Bloomington Accounts receivable Due from other funds Due from other governments Total assets Liabilities and Fund Balance Liabilities Payables Due to other governments Deferred revenue Total liabilities Fund balance: Reserved for debt service Total fund balance General Improvement Debt Bond Service Redemption II $ 0 37,051,695 Page 57 Totals 1995 1994 0 0 0 37,051,695 0 23,258 23,258 0 439,501 439,501 0 2,303,856 2,303,856 0 156,867 156,867 0 33,210 33,210 200,000 380,922 580,922 0 872 872 $ 37,251,695 3,338,486 40,590,181 0 0 0 181,604 0 2,766,615 0 2,948,219 7,296 38,351,489 24,125 415,234 2,595,844 168,933 0 394,819 1,273 41,959,013 0 0 181,604 182,323 2,766,615 3,035,203 2,948,219 3,217,526 37,251,695 390,267 37,641,962 38,741,487 37,251,695 390,267 37,641,962 38,741,487 Total liabilities and fund balance $ 37,251,695 3,338,486 40,590,181 41,959,013 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Revenues: Interest from fiscal agent Special assessments Expenditures: Current: Other Debt service: Bond principal Interest and fiscal charges Total expeditures Deficiency of revenue over expenditures Other financing sources: Operating transfer in: HRA Total other financing Deficiency of revenues and other financing sources over expenditures Fund balance - January 1 General Improvement Debt Bond Service Redemption II Page 58 Totals 1995 1994 $ 1,740,902 1,719 1,742,621 1,727,103 0 723,714 723,714 912,759 1,740,902 725,433 2,466,335 2,639,862 0 1,659 1,659 2,100 1,025,000 1,470,000 2,495,000 1,185,000 5,250,666 128,149 5,378,815 6,148,466 6,275,666 1,599,808 7,875,474 7,335,566 (4,534,764) (874,375) (5,409,139) (4,695,704) 4,309,614 0 4,309,614 4,510,560 4,309,614 0 4,309,614 4,510,560 (225,150) 37,476,845 (874,375) 1,264,642 (1,099,525) 38,741,487 (185,144) 38,926,631 Fund balance - December 31 $ 37,251,695 390,267 37,641,962 38,741,487 Page 59 CAPITAL PROJECT FUNDS Capital Project Funds account for the resources expended to acquire assets of a relatively permanent nature other than those financed by Enterprise Funds. Construction Fund: This fund is used to account for the various special assessment and state aid projects throughout the City. Housing and Redevelopment Authority of Edina Fund: This fund is used to account for revenues from several sources (property taxes, bond proceeds, investment earnings, etc.) that are designated for housing and redevelopment. Revolving Fund: This fund was established to provide financing for capital improvements as designated in the City's capital improvement budget. Assets Cash Investments Accounts receivable Special assessments receivable: Delinquent Deferred Due from other governments Due from other funds Loan receivable Accrued interest receivable Total assets CITY OF EDINA, MINNESOTA Capital Project Funds Combining Balance Sheet December 31, 1995 (with comparative totals for December 31, 1994) Housing and Redevelopment Authority of Construction Edina $ 0 199,090 0 12,038,078 7,882 0 0 0 27,593 0 0 0 $ 35,475 0 0 10,328 2,188,146 1,460,612 115,474 16,011,728 Page 60 Totals Revolving 1995 1994 0 5,700,499 6,410 1,206 126,705 7,457 962,493 0 23,974 6,828,744 199,090 17,738,577 14,292 1,206 126,705 45,378 3,150,639 1,460,612 139,448 22,875,947 108,154 14,006,162 (1,134) 1,655 145,653 3,389 6,596,375 1,290,612 136,035 22,286,901 Liabilities and Fund Balance Liabilities: Salaries payable 121 0 358 479 710 Accounts payable 8,904 1,545 12,509 22,958 22,551 Contracts payable 54,968 0 0 54,968 64,169 Due to other funds 5,427,783 0 0 5,427,783 6,395,454 Due to other governments 58 1,493,759 0 1,493,817 2,014 Taxes payable 0 51,320 0 51,320 81,882 Deferred Income 0 0 127,911 127,911 178,209 Escrow Deposits 91,108 0 0 91,108 0 Total liabilities 5,582,942 1,546,624 140,778 7,270,344 6,744,989 Fund balance(deficit): Reserved for encumbrances 65,211 0 0 65,211 156,582 Reserved for special projects 0 0 26,458 26,458 26,458 Unreserved - undesignated (5,612,678) 14,465,104 6,661,508 15,513,934 15,358,872 Total fund balance (deficit) (5,547,467) 14,465,104 6,687,966 15,605,603 15,541,912 Total liabilities and fund balance $ 35,475 16,011,728 6,828,744 22,875,947 22,286,901 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Revenues: Tax increments Special assessments Intergovernmental Interest on investments Rental of property Other revenues Total revenues Expenditures: Current Personal services Professional fees Other Construction costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Proceeds from sale of land Operating transfers in (out): General debt service fund General fund Construction fund Revolving fund Enterprise fund Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance (deficit) - January 1 Page 61 0 (4,309,614) 50,159 (4,259,455) (4,288,453) 575,009 (248,051) (263,267) 63,691 1,576,304 (6,122,476) 14,713,155 6,951,233 15,541,912 13,965,608 Fund balance (deficit)- December 31 $ (5,547,467) 14,465,104 6,687,966 15,605,603 15,541,912 Housing and Redevelopment Authority of Totals Construction Edina Revolving 1995 1994 $ 0 4,382,705 0 4,382,705 6,938,710 0 0 135,183 135,183 175,072 3,984,044 0 0 3,984,044 135,617 0 309,909 41,151 351,060 566,348 0 0 4,056 4,056 100,632 353,988 15,258 174,855 544,101 984,388 4,338,032 4,707,872 355,245 9,401,149 8,900,767 0 180,000 47,160 227,160 227,419 0 14,803 22,767 37,570 15,914 0 438,043 22,709 460,752 192,350 3,763,023 13,463 576,035 4,352,521 2,600,327 3,763,023 646,309 668,671 5,078,003 3,036,010 575,009 4,061,563 (313,426) 4,323,146 5,864,757 0 0 0 0 5,107 0 (4,309,614) 0 (4,309,614) (4,510,560) 0 0 50,159 50,159 237,000 0 0 0 0 (202,175) 0 0 0 0 202,175 0 0 0 0 (20,000) 0 (4,309,614) 50,159 (4,259,455) (4,288,453) 575,009 (248,051) (263,267) 63,691 1,576,304 (6,122,476) 14,713,155 6,951,233 15,541,912 13,965,608 Fund balance (deficit)- December 31 $ (5,547,467) 14,465,104 6,687,966 15,605,603 15,541,912 Page 62 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. Records are maintained on the accrual basis of accounting. The reports of Enterprise Funds are similar to private enterprise and self - contained. Creditors, legislators or the general public can evaluate the performance of the municipal enterprise on the same basis as investor -owned enterprises. The following Enterprise Funds were established to account for the operation of City -owned facilities: Utilities Fund Liquor Fund Swimming Pool Fund Golf Course Fund Arena Fund Gun Range Fund Art Center Fund Edinborough Park Fund All activities necessary to provide such services are accounted for in these funds, including, but not limited to, administration, operations, maintenance, financing, debt service, billing and collection. CITY OF EDINA, MINNESOTA Enterprise Funds Combining Balance Sheet December 31, 1995 (with comparative totals for December 31, 1994) Assets Current assets: Petty Cash and change funds Cash and cash equivalents Cash with fiscal agents Investments Receivables: Accounts Customers Special assessments Other Interest Due from other governments Due from other funds Inventory Prepaid expenses Total current assets Property and equipment, net Discount on bonds Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Salaries payable Compensated absences payable Due to other funds Due to other governments Accrued Interest payable Total current liabilities Long -term liabilities: Advances from other funds Reserve for construction Deposits payable Deferred revenue Obligation under capital lease Bonds payable Total long -term liabilities Total liabilities Fund equity: Contributed Capital Retained earnings (deficit): Reserved for debt service Unreserved - undesignated Total retained earnings Utilities Page 63 Swimming Liquor Pool $ 0 3,640 0 0 0 0 0 0 0 0 0 0 0 2,111,802 1,759 4,127 0 4,205 1,825,499 16,497 288,506 4,252,395 20, 993,621 4,748 $ 25,250,764 2,094 0 0 0 0 0 247,399 558,597 0 811,730 610,619 0 1,422, 349 127,728 131,971 15,818 7,145 27,925 13,947 0 0 47,948 70,414 35,474 0 254,893 223,477 0 0 0 0 0 0 0 0 0 0 1,580,000 0 1,580,000 0 1,834,893 223,477 0 0 274,998 23,140,873 23,415,871 0 1,198, 872 1,198,872 Total liabilities and fund equity $ 25,250,764 1,422,349 0 0 0 0 0 0 20,295 0 0 20,295 618,886 6,045 645,226 4,340 0 0 0 0 18,489 22,829 0 0 0 0 0 650,000 650,000 672,829 0 32,500 (60,103) (27,603) 645,226 Page 64 Golf 0 Gun Art Edinborough Totals 10,491 Course Arena Range Center Park 0 0 3,300 700 0 100 1,500 9,240 7,840 0 0 0 0 0 0 55,913 2,769,885 1,848,633 0 0 613 4,619,131 4,651,969 0 0 0 0 0 0 53,833 22,130 173,000 0 0 42,173 239,397 82,747 0 0 0 0 0 2,111,802 1,614,954 0 0 0 0 0 1,759 17,054 0 0 0 0 0 4,127 0 0 0 0 0 68,926 68,926 103,924 3,244 0 0 0 0 7,449 99,059 0 0 0 0 72,863 2,166,056 2,154,499 40,340 0 0 8,330 0 623,764 579,318 0 0 0 0 0 288,506 579,318 2,838,899 2,022,333 0 8,430 186,075 10,140,157 10,000,428 8,114,130 1,802,431 19,337 228,084 896,114 33,283,222 33,848,775 63,339 21,610 0 0 0 95,742 110,698 11,016,368 3,846,374 19,337 236,514 1,082,189 43,519,121 43,380,583 57,628 15,418 332 10,660 30,905 378,982 296,886 8,933 1,721 130 1,029 8,864 43,640 29,737 30,102 13,385 0 5,828 17,882 109,069 102,436 1,048,932 858,454 8,663 39,550 1,123,824 3,079,423 3,359,042 4,154 1,869 20 442 1,357 126,204 231,804 283,302 116,010 0 0 0 453,275 276,256 1,433,051 1,006,857 9,145 57,509 1,182,832 4,190,593 4,296,161 0 0 0 0 12,776 3,500 10,491 5,040 36,000 324,000 9,136,775 3,678,225 9,196,042 4,010,765 10,629,093 5,017,622 0 0 0 0 750 0 0 0 0 0 0 0 0 0 90,000 0 0 0 0 750 90,000 9,145 58,259 1,272,832 0 10,000 750 750 16,276 15,017 15,531 12,600 450,000 490,000 15, 045, 000 15, 390, 000 15, 527, 557 15, 918, 367 19,718,150 20,214,528 0 0 0 0 699,706 699,706 772,573 1,115,031 184,591 0 0 0 1,607,120 1,607,120 (727,756) (1,355,839) 10,192 178,255 (890,349) 21,494,145 20,786,362 387,275 (1,171,248) 10,192 178,255 (890,349) 23,101,265 22,393,482 11,016,368 3,846,374 19,337 236,514 1,082,189 43,519,121 43,380,583 Page 65 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Sales and cost of sales: Sales Cost of Sales Gross profit Operating revenues: Charges for services Total gross profit and operating revenues Operating expenses: Disposal charges Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest on investments Donations Interest from fiscal agent Interest and fiscal charges Interest on lease payable Gain (loss) on sale of fixed assets Amortization of bond discount Miscellaneous Total nonoperating revenues (expenses) Income (loss) before operating transfers Operating transfers in (out): General fund Revolving fund Art center fund Liquor store fund Arena fund Golf dome Total operating transfers, net Net income (loss) Add depreciation on contributed assets Increase (decrease) in retained earnings Retained earnings (deficit) - January 1 Retained earnings (deficit) - December 31 Swimming Utilities Liquor Pool $ 0 6,004,554 0 0 4,528,788 0 0 1,475,766 0 7,591,331 0 329,451 7,591,331 1,475,766 329,451 3,359,464 0 0 728,591 535,670 119,686 1,284,517 102,500 50,343 348,868 31,617 11,593 370,932 177,864 9,432 672,376 47,615 65,915 6,764,748 895,266 256,969 826,583 580,500 72,482 0 0 0 0 0 0 0 0 0 (78,182) 0 (37,125) 0 0 0 0 0 0 (1,540) 0 (355) 0 (177) 0 (79,722) (177) (37,480) 746,861 580,323 35,002 0 (383,000) 0 0 0 0 0 (100,000) 0 0 0 0 0 0 0 0 0 0 0 (483,000) 0 746,861 97,323 35,002 0 0 0 746,861 97,323 35,002 22,669,010 1,101,549 (62,605) $ 23,415,871 1,198,872 (27,603) Page 66 Golf Gun Art Edinborough Totals Course Arena Range Center Park 1995 1994 0 0 0 0 0 6,004,554 5,821,688 0 0 0 0 0 4,528,788 4,393,544 0 0 0 0 0 1,475,766 1,428,144 2,533,115 739,288 26,089 191,103 528,633 11,939,010 10,990,426 2,533,115 739,288 26,089 191,103 528,633 13,414,776 12,418,570 0 0 0 0 0 3,359,464 3,262,098 1,029,463 261,389 20,492 106,670 559,865 3,361,826 3,202,834 389,760 180,883 6,280 114,738 328,531 2,457,552 2,560,240 220,867 29,961 7,114 34,016 134,447 818,483 763,472 186,180 53,988 2,340 21,612 144,432 966,780 909,676 477,169 143,897 2,825 25,769 100,489 1,536,055 1,405,991 2,303,439 670,118 39,051 302,805 1,267,764 12,500,160 12,104,311 229,676 69,170 (12,962) (111,702) (739,131) 914,616 314,259 0 0 0 1,716 437,866 439,582 85,261 0 0 0 23,039 0 23,039 26,987 133,189 88,793 0 0 0 221,982 214,091 (569,176) (232,944) 0 0 0 (917,427) (952,517) (1,861) (16,751) 0 0 (4,653) (23,265) (47,749) 0 0 0 0 0 0 287 (8,583) (4,477) 0 0 0 (14,955) (15,826) (395) 791 0 4,125 0 4,344 4,168 (446,826) (164,588) 0 28,880 433,213 (266,700) (685,298) (217,150) (95,418) (12,962) (82,822) (305,918) 647,916 (371,039) 0 0 0 0 350,000 (33,000) (380,000) 0 10,000 0 10,000 0 20,000 20,000 (20,413) 0 0 0 0 (120,413) (33,735) 0 0 0 100,000 0 100,000 0 (97,170) 0 0 0 0 (97,170) (46,586) 0 97,170 0 20,413 0 117,583 80,321 (117,583) 107,170 0 130,413 350,000 (13,000) (360,000) (334,733) 11,752 (12,962) 47,591 44,082 634,916 (731,039) 0 0 0 0 72,867 72,867 128,073 (334,733) 11,752 (12,962) 47,591 116,949 707,783 (602,966) 722,008 (1,183,000) 23,154 130,664 (1,007,298) 22,393,482 22,996,448 387,275 (1,171,248) 10,192 178,255 (890,349) 23,101,265 22,393,482 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Cash Flows Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities Depreciation expense Changes in assets and liabilities: (Increase) in accounts receivable (Increase)decrease in due from other governments (Increase) decrease in inventory (Increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in salaries payable Increase (decrease) in compensated absences payable Increase (decrease) in due to other governments Increase (decrease) in accrued interest payable (Decrease) in contracts payable Increase in deposits payable Increase in deferred revenue Total adjustments Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Miscellaneous Donations (Increase) decrease in due from other funds Increase (decrease) in due to other funds Operating transfer in (out)— General Fund Operating transfer in— Revolving Fund Operating transfer in —Golf dome Operating transfer (out) —Art center Operating transfer in— Liquor Store Fund Operating transfer (out) —Arena Contributed capital Page 67 Swimming Utilities Liquor Pool $ 826,583 580,500 72,482 672,376 (485,680) 94,854 552 (288,506) 42,977 9,396 (1,179) (113,672) 287 0 0 0 (68,595) 757,988 0 0 148,569 0 0 0 0 0 0 0 0 Net cash (used) provided for noncapital financing activitie 148,569 Cash flows from capital financing activities Payment to other funds Net acquisition of capital assets Gain (loss) on sale of fixed assets Principal paid on revenue bonds Principal paid on capital lease Interest earned from fiscal agent Interest paid on capital lease Interest paid on bonds Net cash used for capital financing activities Cash flows from investing activities (Increase) decrease in investments Decrease in interest receivable Interest on investments Net cash provided by investing activities Net increase (decrease) in cash and cash equivalents Cash and equivalents, beginning of year Cash and equivalents, end of year 0 (532,018) 0 (345,000) 0 0 0 (78,182) (955,200) 47,615 (1,931) 0 (44,664) 0 13,734 195 774 2,772 0 0 0 0 18,495 598,995 (177) 0 (66,968) 0 (383,000) 0 0 (100,000) 0 0 0 (550,145) 0 (53,714) 0 0 0 0 0 0 (53,714) 65,915 0 0 0 0 3,979 0 0 0 (61) 0 0 0 69,833 142,315 0 0 (20,295) (67,575) 0 0 0 0 0 0 0 (87,870) 0 (17,320) 0 0 0 0 0 (37,125) (54,445) 0 0 0 0 0 0 0 0 0 0 0 0 (48,643) (4,864) 0 48,643 8,504 0 $ 0 3,640 0 Page 68 Golf Gun Art Edinborough Totals Course Arena Range Center Park 1995 1994 229,676 69,170 (12,962) (111,702) (739,131) 914,616 314,259 477,169 143,897 2,825 25,769 100,489 1,536,055 1,405,991 (15,844) (104,353) 0 0 (34,522) (642,330) (153,546) (3,244) 0 0 0 0 91,610 (231) (4,648) 0 0 4,314 0 (44,446) (26,714) 0 0 0 0 0 (288,506) 0 26,292 (5,248) (126) 670 (182) 82,096 (133,615) 3,117 (1,621) (45) 41 2,820 13,903 579 4,554 1,300 0 430 805 6,684 102,436 4,154 1,000 (31) (38) 164 (105,651) 231,804 111,966 64,827 0 0 0 177,019 (59,269) 0 0 0 0 0 0 (46,762) 1,259 0 0 0 0 1,259 2,088 2,931 0 0 0 0 2,931 2,088 607,706 99,802 2,623 31,186 69,574 830,624 1,322,761 837,382 168,972 (10,339) (80,516) (669,557) 1,745,240 1,637,020 0 0 0 4,125 0 3,948 4,168 0 0 0 23,039 0 23,039 26,987 0 0 0 0 (72,864) (11,558) (132,634) (30,701) (31,509) 8,663 (121,938) (36,559) (279,619) 615,762 0 0 0 0 350,000 (33,000) (380,000) 0 10,000 0 10,000 0 20,000 20,000 0 97,170 0 20,413 0 117,583 80,321 (20,413) 0 0 0 0 (120,413) (33,735) 0 0 0 100,000 0 100,000 0 (97,170) 0 0 0 0 (97,170) (46,586) 0 0 0 0 0 0 9,331 (148,284) 75,661 8,663 35,639 240,577 (277,190) (910,057) 0 0 0 (10,000) 0 (10,000) (10,000) (267,262) (68,055) (730) (672) (30,730) (970,501) (1,073,958) (395) 791 0 0 0 396 287 0 0 0 0 0 (345,000) (2,365,000) (3,200) (28,800) 0 0 (8,000) (40,000) (20,000) 133,189 88,793 0 0 0 221,982 214,091 (1,861) (16,751) 0 0 (4,653) (23,265) (47,749) (569,176) (232,944) 0 0 0 (917,427) (952,517) (708,705) (256,966) (730) (10,672) (43,383) (2,083,815) (3,181,175) 0 0 0 53,833 0 53,833 332,599 0 0 0 0 34,999 34,999 (30,949) 0 0 0 1,716 437,866 439,582 85,261 0 0 0 55,549 472,865 528,414 386,911 (19,607) (12,333) (2,406) 0 502 (87,351) (2,067,301) 2,792,792 1,861,666 2,406 100 1,611 4,715,722 6,783,023 2,773,185 1,849,333 0 100 2,113 4,628,371 4,715,722 Page 69 CITY OF EDINA, MINNESOTA Utilities Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets 1995 Current assets: Cash and cash equivalents Receivables: Customers Assessments Other Due from other funds Due from other governments Inventory Prepaid expenses Total current assets Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Compensated absences payable Due to other governments Accrued interest payable Total current liabilities Long -term liabilities: Bonds payable Total liabilities Retained earnings: Reserved for debt service Unreserved — undesignated Total retained earnings $ 0 2,111,802 1,759 4,127 1,825,499 4,205 16,497 288,506 4,252,395 1994 48,643 1,614,954 17,054 0 1,974,068 99,059 17,049 0 3,770,827 20,993,621 21,133,978 4,748 6,289 $ 25,250,764 24,911,094 127,728 15,818 27,925 47,948 35,474 254,893 84,751 6,422 29,104 161,620 35,187 317,084 1,580,000 1,925,000 1,834,893 2,242,084 274,998 23,140,873 23,415,871 274,998 22,394,012 22,669,010 Total liabilities and retained earnings $ 25,250,764 24,911,094 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Storm sewer charges Water charges Sewer charges Recycling Sale of meters (less cost of meters sold) Other Total operating revenues Operating expenses: Disposal charges - contractual services Source of supply: Personal services Contractual services Commodities Distribution: Personal services Contractual services Commodities Purification: Personal services Contractual services Commodities Source of collection: Personal services Contractual services Commodities Storm sewer: Personal services Contractual services Commodities General and administrative: Personal services Contractual services Commodities Recycling: Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income 1995 $ 581,114 2,200,952 4,153,929 455,951 19,130 180,255 7,591,331 3,359,464 129,333 62,871 60,992 208,235 426,299 161,357 55,604 76,327 53,668 48,936 3,536 46,904 29,995 116,154 15,618 240,349 187,781 6,264 16,139 411,549 4,065 370,932 672,376 6,764,748 826,583 1994 566,528 1,740,020 3,999,910 523,557 14,102 173,036 7,017,153 3,262,098 116,842 102,747 43,171 219,004 319,543 162,159 40,652 75,695 39,444 38,447 2,034 52,705 41,624 125,553 35,048 257,634 161,554 1,797 25,294 476,262 2,850 348,624 649,545 6,600,326 416,827 Page 70 (Continued) Page 71 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Nonoperating revenues (expenses): Interest on investments Interest from fiscal agent Interest and fiscal charges Amortization of bond discount Total nonoperating expenses Net income Retained eamings— January 1 1995 1994 $ 0 0 (78,182) (1,540) (79,722) 746,861 6,642 (12,507) (97,597) (2,410) (105,872) 310,955 22,669,010 22,358,055 Retained eamings — December 31 $ 23,415,871 22,669,010 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended year ended December 31,1994) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) in accounts receivable (Increase) decrease in due from other governments Decrease in inventory (Increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in salaries payable Increase (decrease) in compensated absences payable Increase (decrease) in due to other governments Increase (decrease) in accrued interest payable Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: (Increase) decrease in due from other funds Net cash used by noncapital financing activities Cash flows from capital financing activities: Principal paid on revenue bonds Acquisition of capital assets Interest from fiscal agent Interest paid on revenue bonds Net cash used by capital financing activities Cash flows from investing activities: Interest on investments Net cash provided by investing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year 1995 Page 72 1994 $ 826,583 416,827 Cash and cash equivalents, end of year $ 672,376 (485,680) 94,854 552 (288,506) 42,977 9,396 (1,179) (113,672) 287 (68,595) 757,988 649,545 (158,471) (231) 4,302 0 (16,423) (558) 29,104 161,620 (59,269) 609,619 1,026,446 148,569 (254,589) 148,569 (254,589) (345,000) (532,018) 0 (78,182) (955,200) 0 0 (2,165,000) (547,894) (12,507) (97,597) (2,822,998) 6,642 6,642 (48,643) (2,044,499) 48,643 2,093,142 0 48,643 CITY OF EDINA, MINNESOTA Liquor Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets Current assets: Petty cash and change funds Cash Accounts receivable Due from other funds Inventory Total current assets Property and equipment, net Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Compensated absences payable Due to other governments Total current liabilities Retained earnings: Unreserved — undesignated 1995 1994 $ 3,640 3,640 0 4,864 2,094 163 247,399 180,431 558,597 513,933 811,730 703,031 610,619 604,520 $ 1,422,349 1,307,551 131,971 118,237 7,145 6,950 13,947 13,173 70,414 67,642 223,477 206,002 1,198,872 1,101,549 Total liabilities and retained earnings $ 1,422,349 1,307,551 Page 73 Page 74 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1995 (with comparative totals for year ended December 31, 1994) Nonoperating revenues (expenses): Cash over (short) (57) 1995 (346) (617) 1994 Miscellaneous 50th Street Yorkdale Vernon Totals Totals Sales $ 1,364,640 2,381,348 2,258,566 6,004,554 5,821,688 Cost of sales 1,020,334 1,800,663 1,707,791 4,528,788 4,393,544 Gross profit 344,306 580,685 550,775 1,475,766 1,428,144 Operating expenses: (100,000) 0 Selling 83,738 111,863 114,327 309,928 268,341 Occupancy 33,559 44,994 38,549 117,102 111,484 Administrative 125,854 181,393 160,989 468,236 459,885 Total operating expenses 243,151 338,250 313,865 895,266 839,710 Operating income 101,155 242,435 236,910 580,500 588,434 Nonoperating revenues (expenses): Cash over (short) (57) (214) (346) (617) (1,062) Miscellaneous 440 0 0 440 1,500 Total nonoperating revenues (expenses) 383 (214) (346) (177) 438 Income before operating transfer out $ 101,538 242,221 236,564 580,323 588,872 Operating transfer out: General Fund (383,000) (380,000) Operating transfer out: Art Center (100,000) 0 (483,000) (380,000) Net income Retained eamings- January 1 97,323 208,872 1,101, 549 892,677 Retained eamings - December 31 $ 1,198,872 1,101,549 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating income Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in salaries payable Increase in compensated absences Increase in due to other governments Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Cash short Miscellaneous (Increase) in due from other funds Increase (decrease) in due to other funds Operating transfer to general fund Net cash used by noncapital financing activities Cash flows from capital financing activities: Acquistion of capital assets Net cash used by capital financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Page 75 1995 1994 580,500 588,434 47,615 (1,931) (44,664) 13,734 195 774 2,772 18,495 598,995 (617) 440 (66,968) 0 (483,000) (550,145) 45,118 239 3,383 (75,757) (943) 13,173 67,642 52,855 641,289 (1,062) 1,500 (180,431) (61,325) (380,000) (621, 318) (53,714) (15,107) (53,714) (15,107) (4,864) 4,864 8,504 3,640 $ 3,640 8,504 Page 76 CITY OF EDINA, MINNESOTA Liquor Fund Schedule of Operating Expenses Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Occupancy: Personal services 2,395 3,470 1,304 Totals 4,969 Contractual services: 50th Street Yorkdale Vernon 1995 1994 Selling: $ 196 0 196 0 Personal services 73,607 100,033 102,520 276,160 246,899 Contractual services 713 1,012 1,318 3,043 4,119 Direct promotion 3,598 2,661 3,311 9,570 7,815 Commodities 6,533 9,169 8,496 24,198 13,627 Total selling 83,738 111,863 114,327 309,928 268,341 Occupancy: Personal services 2,395 3,470 1,304 7,169 4,969 Contractual services: Professional services 0 196 0 196 0 Burglar alarm 239 446 254 939 2,647 Heat 713 1,012 1,318 3,043 4,119 Laundry and rug service 418 984 534 1,936 1,828 Light and power 10,182 16,098 8,352 34,632 33,863 Maintenance, renting and cooling 723 113 203 1,039 806 Repair and maintenance 988 2,944 748 4,680 3,125 Rubbish hauling 869 1,046 739 2,654 3,539 Telephone 2,588 2,646 2,512 7,746 6,613 Water and sewer service 163 185 174 522 745 Commodities 1,678 2,913 339 4,930 4,112 Depreciation 12,602 12,941 22,072 47,615 45,118 Total occupancy 33,559 44,994 38,549 117,102 111,484 Administrative: Personal services 76,291 93,345 82,705 252,341 263,168 Contractual services: Data processing (483) (483) (483) (1,449) 970 Mileage 0 1,965 0 1,965 1,950 Professional service 7,230 11,300 11,892 30,422 24,265 Miscellaneous 1,897 878 1,830 4,605 2,248 Commodities 911 1,068 509 2,488 804 Central services 40,008 73,320 64,536 177,864 166,480 Total administrative 125,854 181,393 160,989 468,236 459,885 $ 243,151 338,250 313,865 895,266 839,710 Page 77 CITY OF EDINA, MINNESOTA Swimming Pool Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets Property and equipment, net Discount on bonds Due from other funds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Due to other funds Accrued interest payable Total current liabilities Long -term liabilities Bonds payable Total liabilities Retained earnings: Reserved for debt retirement Unreserved — undesignated Total retained earnings 1995 1994 $ 618,886 6,045 20,295 $ 645,226 4,340 0 18,489 22,829 667,481 6,400 0 673,881 361 67,575 18,550 86,486 650,000 650,000 672,829 736,486 32,500 (60,103) (27,603) 32,500 (95,105) (62,605) Total liabilities and retained earnings $ 645,226 673,881 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Season tickets General admissions Rentals and instruction programs Registration Concessions (less cost of goods sold) Other Total operating revenues Operating expenses: Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income Nonoperating expenses: Interest on loan Bond discount amortization Total nonoperating expenses Net income (loss) Retained earnings (deficit) — January 1 Retained earnings (deficit) — December 31 1995 $ 176,367 81,926 9,208 31,200 30,750 0 329,451 119,686 50,343 11,593 9,432 65,915 256,969 72,482 (37,125) (355) (37,480) 35,002 1994 148,399 52,892 6,936 28,160 21,892 5 258,284 104,284 51,168 5,593 8,724 53,970 223,739 34,545 (37,185) (356) (37,541) (2,996) (62,605) (59,609) $ (27,603) (62,605) Page 78 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: Increase (decrease) in accounts payable Increase (decrease) in accrued interest payable Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: (Increase) in due from other funds (Decrease) in due to other funds Net cash used by noncapital financing activities Cash flows from capital financing activities: Acquistion of capital assets Interest paid on bonds Net cash used by capital financing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 1995 Page 79 1994 $ 72,482 34,545 65,915 3,979 (61) 69,833 142,315 (20,295) (67,575) (87,870) (17,320) (37,125) (54,445) 0 0 $ 0 53,970 (896) 0 53,074 87,619 0 (27,870) (27,870) (22,564) (37,185) (59,749) 0 0 0 Page 80 CITY OF EDINA, MINNESOTA Golf Course Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets Current assets: Cash with fiscal agents Petty cash and change funds Accounts receivable Due from other governments Inventory Total current assets Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Compensated Absences payable Due to other funds Due to other governments Accrued interest payable Total current liabilities Long -term liabilities: Deposits payable Deferred revenue Obligation under capital lease Bonds payable Total liabilities Retained earnings: Reserved for debt services Unreserved — undesignated Total retained earnings 1995 $ 2,769,885 3,300 22,130 3,244 40,340 2,838,899 1994 2,790,892 1,900 6,286 0 35,692 2,834,770 8,114,130 8,324,037 63,339 71,922 $ 11,016,368 11,230,729 57,628 8,933 30,102 1,048,932 4,154 283,302 1,433,051 12,776 10,491 36,000 9,136,775 10,629,093 1,115,031 (727,756) 387,275 31,336 5,816 25,548 1,079,633 0 171,336 1,313,669 11,517 7,560 39,200 9,136,775 10,508,721 1,115,031 (393,023) 722,008 Total liabilities and retained earnings $ 11,016,368 11,230,729 Page 81 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Greens fees Rental fees Patron cards Concessions (less cost of goods sold) Range Dome Lessons Pro Shop (less cost of goods sold) Other Total operating revenues Operating expenses: Administration Building --club house Maintenance of course and grounds Range and grill Dome Normandale Pro Shop Depreciation Total operating expenses Operating income Nonoperating revenues (expenses): Interest on investments Interest from fiscal agent Interest and fiscal charges Interest on lease payable Amortization of bond discount Gain (loss) on sale of fixed assets Total nonoperating revenues(expenses) Net loss before operating transfer out Operating transfers (out): Art center fund Arena fund Net loss Retained earnings- January 1 1995 1994 $ 1,345,806 264,914 129,811 135,310 254,305 310,792 59,132 14,231 18,814 2,533,115 682,764 119,886 517,189 195,173 188,961 103,336 18,961 477,169 2,303,439 229,676 0 133,189 (569,176) (1,861) (8,583) (395) (446,826) (217,150) (20,413) (97,170) (117,583) (334,733) 1,149,023 235,861 118,971 123,657 233,151 299,023 77,283 0 19,136 2,256,105 612,775 113,105 413,658 207,939 219,519 96,036 0 378,438 2,041,470 214,635 3,301 135,959 (583,206) (3,820) (8,583) 7,500 (448,849) (234,214) (33,735) (46,586) (80,321) (314,535) 722,008 1,036,543 Retained earnings- December 31 $ 387,275 722,008 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in inventory (Increase) in due from other governments Increase (decrease) in accounts payable Increase (decrease) in salaries payable Increase in compensated absences payable Increase in accrued interest payable (Decrease) in contracts payable -Increase in deposits payable Increase in due to other governments Increase in deferred revenue Total adjustments Net cash provided by operating activities Cash flow from noncapital financing activities: Increase (decrease) in due to other funds Operating transfer out —Art Center Operating transfer out —Arena Net cash (used) provided by noncapital financing activities Cash flow from capital financing activities: Principal paid on revenue bonds Principal paid on capital lease Acquistion of capital assets Gain (loss) from sale of fixed assets Interest from fiscal agent Interest paid on lease Interest paid on revenue bonds Net cash used by capital financing activities Cash flows from investing activities: Decrease in investments Interest on investments Net cash provided by investing activities: Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year $ 1995 Page 82 1994 229,676 214,635 477,169 (15,844) (4,648) (3,244) 26,292 3,117 4,554 111,966 0 1,259 4,154 2,931 607,706 837,382 (30,701) (20,413) (97,170) (148,284) 0 (3,200) (267,262) (395) 133,189 (1,861) (569,176) (708,705) 0 0 0 378,438 20,455 (35,692) 0 (54,507) (983) 25,548 0 (46,762) 2,088 0 0 288,585 503,220 358,539 (33,735) (46, 586) 278,218 (180,825) (1,600) (493,531) 7,500 135,959 (3,820) (583,206) (1,119,523) 316,491 3,301 319,792 (19,607) (18,293) 2,792,792 2,811,085 Cash and cash equivalents, end of year $ 2,773,185 2,792,792 CITY OF EDINA, MINNESOTA Golf Course Fund Schedule of Operating Expenses Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Administration Personal services Contractual services Commodities Central services Total administration Building -Club House Personal services Contractual services Commodities Total building -Club House Maintenance of course and grounds: Personal services Contractual services Commodities Total maintenance of course and grounds Range and grill: Personal services Contractual services Commodities Total range and grill Golf dome: Personal services Contractual services Commodities Total golf dome Normandale: Personal services Contractual services Commodities Total normandale Pro Shop Contractual services Commodities Depreciation 1995 1994 $ 359,418 113,314 23,852 186,180 682,764 26,745 76,991 16,150 119,886 336,782 61,857 118,550 517,189 171,358 4,218 19,597 195,173 59,606 111,768 17,587 188,961 75,554 6,307 21,475 103,336 15,305 3,656 18,961 477,169 303,353 108,793 17,869 182,760 612,775 23,570 76,525 13,010 113,105 268,786 37,326 107,546 413,658 164,023 5,488 38,428 207,939 62,277 147,916 9,326 219,519 70,435 7,167 18,434 96,036 0 0 0 378,438 Total operating expenses $ 2,303,439 2,041,470 Page 83 Page 84 CITY OF EDINA, MINNESOTA Arena Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets Current assets: Cash with fiscal agents Petty cash and change funds Accounts receivable Total current assets Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Compensated absences payable Due to other funds Due to other governments Accrued interest payable Total current liabilities Long -term liabilities: Deferred revenue Deposits payable Obligation under capital lease Bonds payable Total liabilities Retained earnings (deficit): Reserved for debt service Unreserved — undesignated Total retained earnings 1995 $ 1,848,633 700 173,000 2,022,333 1994 1,860,966 700 68,647 1,930,313 1,802,431 1,878,273 21,610 26,087 $ 3,846,374 3,834,673 15,418 1,721 13,385 858,454 1,869 116,010 1,006,857 5,040 3,500 324,000 3,678,225 5,017,622 184,591 (1,355,839) (1,171,248) 20,666 3,342 12,085 889,963 869 51,183 978,108 5,040 3,500 352,800 3,678,225 5,017,673 184,591 (1,367,591) (1,183,000) Total liabilities and retained earnings $ 3,846,374 3,834,673 Page 85 CITY OF EDINA, MINNESOTA Arena Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Rental fees Season ticket sales Daily skating fees Admissions Lessons Concessions(less cost of goods sold) Vending machine commissions Services -skate sharpening Total operating revenues Operating expenses: Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income (loss) Nonoperating revenues (expenses): Interest from fiscal agent Interest and fiscal charges Interest on lease payable Amortization of bond discount Gain (loss) on sale of fixed assets Total nonoperating expenses Net loss before operating transfer in Operating transfer in -golf dome Operating transfer in- Revolving Fund Net income (loss) Retained earnings (deficit) - January 1 1995 1994 $ 559,668 8,273 15,242 31,556 74,427 27,119 10,656 12,347 739,288 261,389 180,883 29,961 53,988 143,897 670,118 69,170 88,793 (232,944) (16,751) (4,477) 791 (164,588) (95,418) 97,170 10,000 107,170 11,752 517,874 11,829 20,009 23,400 74,259 24,390 9,746 13,460 694,967 265,335 264,900 29,268 54,768 148,093 762,364 (67,397) 90,639 (234,529) (34,379) (4,477) (7,213) (189,959) (257,356) 46,586 10,000 56,586 (200,770) (1,183,000) (982,230) Retained earnings (deficit) - December 31 $ (1,171,248) (1,183,000) CITY OF EDINA, MINNESOTA Arena Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense . Changes in assets and liabilities: (Increase) in accounts receivable Increase (decrease) in accounts payable Increase (decrease) in salaries payable Increase in compensated absences payable Increase in due to other governments Increase in accrued interest payable Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Increase (decrease) in due to other funds Operating transfer in —golf dome Operating transfer in— Revolving Fund Net cash provided by noncapital financing activities Cash flows from capital financing activities: Principal paid on revenue bonds Principal paid on capital lease Acquisition of capital assets Gain (loss) from sale of fixed assets Interest from fiscal agent Interest paid on lease payable Interest paid on revenue bonds Net cash used by capital financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 1995 Page 86 1994 69,170 (67,397) 143,897 (104,353) (5,248) (1,621) 1,300 1,000 64,827 99,802 168,972 (31,509) 97,170 10,000 75,661 0 (28,800) (68,055) 791 88,793 (16,751) (232,944) (256,966) (12,333) 148,093 (8,128) 6,334 1,730 12,085 869 0 160,983 93,586 27,313 46,586 10,000 83,899 (19,175) (14,400) 29,682 (7,213) 90,639 (34,379) (234,529) (189,375) (11,890) 1,861,666 1,873,556 $ 1,849,333 1,861,666 CITY OF EDINA, MINNESOTA Gun Range Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets 1995 Current assets: Cash and cash equivalents Total current assets Property and equipment, net Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Due to other funds Due to other governments Total current liabilities Retained earnings: Unreserved — undesignated Total liabilities and retained earnings 1994 $ 0 2,406 0 2,406 19,337 21,432 $ 19,337 23,838 332 458 130 175 8,663 0 20 51 9,145 684 10,192 23,154 $ 19,337 23,838 Page 87 Page 88 CITY OF EDINA, MINNESOTA Gun Range Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Range fees Sale of ammunition Concessions(less cost of goods sold) Other Total operating revenues Operating expenses: Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income (loss) Nonoperating revenues: Donations Total nonoperating revenues(expenses) Net income (loss) Retained earnings - January 1 1995 1994 $ 21,893 38,013 3,849 4,566 245 481 102 143 26,089 43,203 20,492 6,280 7,114 2,340 2,825 39,051 20,115 6,991 9,290 1,980 3,528 41,904 (12,962) 1,299 0 1,000 0 1,000 (12,962) 2,299 23,154 20,855 Retained earnings - December 31 $ 10,192 23,154 CITY OF EDINA, MINNESOTA Gun Range Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: Decrease in accounts payable Increase (decrease) in salaries payable Increase (decrease) in due to other governments Total adjustments Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Donations Increase (decrease) in due to other funds Net cash provided by noncapital financing activities Cash flows from capital financing activities: Acquisition of capital assets Net cash used by capital financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 1995 $ (12,962) 2,825 (126) (45) (31) 2,623 (10,339) 0 8,663 8,663 Page 89 1994 1,299 3,528 (2,883) 125 51 821 2,120 1,000 (714) 286 (730) 0 (730) 0 (2,406) 2,406 $ 0 2,406 L 2,406 CITY OF EDINA, MINNESOTA Art Center Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets Current assets: Petty cash and change funds Investments Inventory Total current assets Property and equipment, net Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Due to other funds Due to other Governments Compensated absences payable Total current liabilities Long -term liabilities: Reserve for construction Due to other funds Total liabilities Retained earnings: U nreserved— undesignated Total liabilities and retained earnings 1995 1994 $ 100 100 0 53,833 8,330 12,644 8,430 66,577 228,084 253,181 $ 236,514 319,758 10,660 9,990 1,029 988 39,550 161,488 442 480 5,828 5,398 57,509 178,344 750 750 0 10,000 58,259 189,094 178,255 130,664 $ 236,514 319,758 Page 90 Page 91 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Memberships Registration fees Retail sales, less cost of goods sold Total operating revenues Operating expenses: Administration: Personal services Contractual services Commodities Central services Total administration Occupancy: Personal services Contractual services Commodities Total occupancy Class costs Instructors - personal services Depreciation Total operating expenses Operating loss Nonoperating revenues: Income on investments Donations Miscellaneous Total nonoperating revenues Net loss before operating transfer in Operating transfer in Liquor Store Operating transfer in golf dome Operating transfer in- Revolving Fund Net loss Retained eamings- January 1 1995 $ 16,472 166,832 7,799 191,103 92,915 3,372 28,333 21,612 146,232 13,756 18,966 4,395 37,117 1,287 92,400 25,769 302,805 (111,702) 1,716 23,039 4,125 28,880 (82,822) 100,000 20,413 10,000 130,413 47,591 1994 14,561 170,425 7,255 192,241 95,422 3,586 24,770 20,100 143,878 13,030 18,447 3,449 34,926 1,683 88,551 27,879 296,917 (104,676) 1,617 25,987 3,730 31,334 (73,342) 0 33,735 10,000 43,735 (29,607) 130,664 160,271 Retained earnings- December 31 $ 178,255 130,664 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating loss Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: Decrease in inventory Increase(decrease) in accounts payable Increase(decrease) in due to other governments Increase in salaries payable Increase in compensated absences payable Total adjustments Net cash used by operating activities Cash flows from noncapital financing activities: Donations (Decrease) in due to other funds Operating transfer from Revolving Fund Operating transfer from golf dome Operating transfer from Liquor Store Miscellaneous Net cash provided by noncapital financing activities Cash flow from capital financing activities: Payment to other funds Acquisition of capital assets Net cash used by noncapital financing activities Cash flow from investing activities: Decrease in investments Interest on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Page 92 1995 1994 $ (111,702) 25,769 4,314 670 (38) 41 430 31,186 (80,516) 23,039 (121,938) 10,000 20,413 100,000 4,125 35,639 (10,000) (672) (10,672) 53,833 1,716 55,549 A 100 (104,676) 27,879 1,293 (3,047) 480 276 5,398 32,279 (72,397) 25,987 (4,738) 10,000 33,735 0 3,730 68,714 (10,000) (4,042) (14,042) 16,108 1,617 17,725 F 100 $ 100 100 Page 93 CITY OF EDINA, MINNESOTA Edinborough Park Fund Balance Sheet December 31, 1995 (with comparative amounts for December 31, 1994) Assets Current assets: Petty cash and change funds Cash with fiscal agents Accounts receivable Accrued interest receivable Due from other funds Total current assets Property and equipment, net Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Compensated absences payable Due to other funds Due to other government Total current liabilities Long -term liabilities: Obligation under capital lease Total liabilities Retained earnings (deficit): Contributed capital Unreserved — undesignated Total retained earnings 1995 $ 1,500 613 42,173 68,926 72,863 186,075 1994 1,500 111 7,651 103,924 0 113,186 896,114 965,873 $ 1,082,189 1,079,059 30,905 8,864 17,882 1,123,824 1,357 1,182,832 31,087 6,044 17,077 1,160,383 1,193 1,215,784 90,000 98,000 1,272,832 1,313,784 699,706 (890,349) (190,643) 772,573 (1,007,298) (234,725) Total liabilities and retained earnings $ 1,082,189 1,079,059 CITY OF EDINA, MINNESOTA Edinborough Park Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Operating revenues: Association fees Rental fees Admissions Season ticket sales Skate rental Concessions (less cost of goods sold) Program income Other Total operating revenues Operating expenses: Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating loss Nonoperating revenues (expenses): Interest on investments Interest paid on lease payable Total nonoperating revenues (expenses) Net income (loss) before operating transfers Operating transfer in - General Fund Net income (loss) Add depreciation on contributed assets Increase (decrease) in retained earnings Retained earnings (deficit)- January 1 Retained earnings (deficit) - December 31 1995 1994 $ 248,015 144,295 60,261 12,608 24,480 6,951 11,039 20,984 528,633 559,865 328,531 134,447 144,432 100,489 1,267,764 (739,131) 437,866 (4,653) 433,213 (305,918) 244,676 145,397 63,372 12,163 24,178 4,925 14,747 19,015 528,473 557,671 383,778 130,772 126,240 99,420 1,297,881 (769,408) 73,701 (9,550) 64,151 (705,257) 350,000 0 44,082 (705,257) 72,867 128,073 116,949 (577,184) (1,007,298) (430,114) $ (890,349) (1,007,298) Page 94 CITY OF EDINA, MINNESOTA Edinborough Park Fund Statement of Cash Flows Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Cash flows from operating activities: Operating loss Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable Increase (decrease) in accounts_ payable Increase in salaries payable Increase in compensated absences payable Increase in due to other government Total adjustments Net cash used by operating activities Cash flows from noncapital financing activities: (Increase) decrease in due from other funds Operating transfer in - General Fund Increase (decrease) in due to other funds Net cash provided by noncapital financing activities Cash flow from capital financing activities: Acquisition of capital assets Contributed assets Principal paid on capital lease Interest paid on lease Net cash used by capital financing activities Cash flows from investing activities: (Increase) decrease in interest receivable Interest on investments Net cash provided by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Page 95 1995 1994 $ (739,131) (769,408) 100,489 (34,522) (182) 2,820 805 164 69,574 99,420 (7,641) 13,564 932 17,077 1,193 124,545 (669,557) (644,863) (72,863) 350,000 (36,559) 240,578 (30,730) 0 (8,000) (4,653) (43,383) 34,998 437,866 472,864 502 302,386 0 324,557 626,943 (20,502) 9,331 (4,000) (9,550) (24,721) (30,949) 73,701 42,752 111 1,611 1,500 Cash and cash equivalents, end of year $ 2,113 1,611 Page 96 AGENCY FUNDS Agency Funds account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units and other funds. The City has the following Agency Funds: Deferred Compensation Fund: Accounts for assets retained by the City pursuant to agreements with individual employees that provide for specific salary amounts to be paid at a later date. These assets are in the custody of a third party for investment purposes. Police Seizure Fund: Accounts for funds obtained by the police department which will be remitted to the proper governments. Page 97 CITY OF EDINA, MINNESOTA Agency Funds Statement of Changes in Assets and Liabilities Year ended December 31, 1995 Totals —All Agency Funds Assets: Cash $ Balance 6,489 0 Balance Cash with plan administrators 1/1/95 Additions Deductions 12/31/95 Deferred Compensation Fund $ 6,569,128 1,063,373 0 7,632,501 Assets: Cash with plan administrators $ 6,521,280 1,056,884 0 7,578,164 Liabilities: 13,478 0 0 13,478 Due to participants $ 6,521,280 1,056,884 0 7,578,164 Total liabilities Police Seizure Fund 6,569,128 1,063,373 0 7,632,501 Assets: Cash $ 47,848 6,489 0 54,337 Liabilities: Due to other funds 13,478 0 0 13,478 Due to other governments 34,370 6,489 0 40,859 $ 47,848 6,489 0 54,337 Totals —All Agency Funds Assets: Cash $ 47,848 6,489 0 54,337 Cash with plan administrators 6,521,280 1,056,884 0 7,578,164 Total assets $ 6,569,128 1,063,373 0 7,632,501 Liabilities: Due to participants $ 6,521,280 1,056,884 0 7,578,164 Due to other funds 13,478 0 0 13,478 Due to other governments 34,370 6,489 0 40,859 Total liabilities $ 6,569,128 1,063,373 0 7,632,501 Page 98 GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group provides for the accounting of fixed assets other than those accounted for in the Enterprise Funds. Page 99 CITY OF EDINA, MINNESOTA General Fixed Assets Account Group Schedule of General Fixed Assets December 31, 1995 (with comparative amounts for December 31, 1994) General fixed assets: Land and land improvements Buildings Furniture and fixtures Vehicles and equipment Parks Construction -in- progress Total general fixed assets 1995 1994 $ 27,769,302 27,769,302 19, 599, 311 19, 570, 313 725,847 659,560 8,983,591 8,314,986 7,325,444 7,150,738 1,068,623 0 $ 65,472,118 63,464,899 Total investment in general fixed assets $ 65,472,118 63,464,899 Page 100 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long -term Debt Account Group is used to account for the long -term debt of the City other than debt recorded in the Enterprise Funds. Primarily, these are general obligations and other forms of long -term debt supported by general revenues and special assessments, and are obligations of a governmental unit as a whole and not its individual constituent funds. CITY OF EDINA, MINNESOTA General Long -term Debt Account Group Schedule of General Long -term Debt December 31, 1995 (with comparative amounts for December 31, 1994) Amount available and to be provided for the retirement of long -term debt: General Obligation Bonds: Amount available with fiscal agents Amount available in Debt Service Funds Amount to be provided by tax increment financing Amount to be provided by special assessments Compensated absences: Amount to be provided by revenue sources Total available and to be provided General long -term debt payable: Accrued compensated absences General obligation bonds payable $ Page 101 1995 1994 37,051,695 200,000 48,133,305 1,345,000 485,923 38,351,489 200,000 48,933,155 1,740,356 463,247 $ 87,215,923 89,688,247 485,923 463,247 86,730,000 89,225,000 Total general long -term debt payable $ 87,215,923 89,688,247 CITY OF EDINA, MINNESOTA Combined Schedule of Bonded Indebtedness December 31, 1995 Bonded indebtedness: Tax Increment Bonds: Tax Increment Bonds, Series 1986A Tax Increment Bonds, Series 1986B Tax Increment Bonds, Series 1988 Tax Increment Taxable Bonds, Series 1988 Tax Increment Bonds, Series 1989 Tax Increment Taxable Bonds, Series 1989 Tax Increment Refunding bonds, Series 1989 Tax Increment Bonds, Series 1990 Tax Increment Refunding Bonds, Series 1992B Tax Increment Refunding Bonds, Series 1993A Improvement Bonds: Improvement Bonds of 1986 Improvement Refunding Bonds, Series 1992E Revenue Bonds: Golf Course Bonds of 1995 Recreation Bonds of 1988 Recreation Bonds of 1989 Recreation Bonds, Series 1992A Recreation Refunding Bonds, Series 1992C Utility Refunding Bond, Series 1992D Total bonded indebtedness Page 102 4.50- 6.60 8/1/86 8/1/96 4.00- 5.20 11/1/92 2/1/01 6.25- 8.70 9/1/85 Final Interest Issue maturity rate date date 4.00- 6.05 11/1/92 1/1/13 5.20- 7.00% 8/1/86 8/1/06 5.20- 7.00 8/1/86 8/1/03 6.40- 7.30 10/1/88 2/1/09 9.20- 9.75 10/1/88 2/1/09 6.80- 7.30 4/1/89 2/1/09 10.00 -10.25 4/1/89 2/1/09 6.00-7.00 11/1/89 1/1/06 6.70- 6.80 3/1/90 2/1/05 4.90- 6.00 11/1/92 2/1/09 4.25- 5.10 5/1/93 2/1/06 4.50- 6.60 8/1/86 8/1/96 4.00- 5.20 11/1/92 2/1/01 6.25- 8.70 9/1/85 1/1/00 6.10- 7.30 10/1/88 1/1/09 6.75- 7.30 4/1/89 1/1/09 4.00- 6.05 11/1/92 1/1/13 4.40- 6.00 11/1/92 1/1/09 3.80- 4.90 11/1/92 2/1/99 Page 103 Exhibit 1 1995 Percent Indebtedness paid by tax Authorized Due in 1996 levies and issued Redeemed Outstanding Principal Interest None $4,000,000 600,000 3,400,000 3,400,000 117,925 None 2,000,000 650,000 1,350,000 1,350,000 46,313 None 10,175,000 250,000 9,925,000 75,000 708,575 None 5,100,000 125,000 4,975,000 50,000 474,362 None 8,425,000 225,000 8,200,000 75,000 589,950 None 5,300,000 125,000 5,175,000 50,000 523,562 None 12,970,000 1,200,000 11,770,000 11,770,000 395,806 None 3,080,000 0 3,080,000 0 207,195 None 17,930,000 0 17,930,000 0 1,025,405 None 19,580,000 0 19,580,000 0 940,648 88,560,000 3,175,000 85,385,000 16,770,000 5,029,741 None 2,500,000 2,250,000 250,000 250,000 16,500 None 1,095,000 0 1,095,000 195,000 47,395 3,595,000 2,250,000 1,345,000 445,000 63,895 None 1,200,000 550,000 650,000 650,000 50,850 None 2,470,000 100,000 2,370,000 25,000 169,162 None 2,100,000 280,000 * 1,820,000 80,000 127,782 None 3,975,000 0 3,975,000 45,000 226,575 None 4,650,000 0 4,650,000 0 257,328 None 1,925,000 345,000 1,580,000 370,000 63,940 16,320,000 1,275,000 15,045,000 1,170,000 895,637 $108,475,000 6,700,000 101,775,000 18,385,000 5,989,273 * Payment due January 1, 1995 paid December, 1994 Payment due January 1, 1996 paid January, 1996 CITY OF EDINA, MINNESOTA Schedule of Changes in Bonded Indebtedness Year ended December 31, 1995 Balance January 1 Issued Tax Increment Bonds $ 86,410,000 Improvement Bonds 2,815,000 Revenue Bonds 15,390,000 Redeemed 1,025,000 1,470,000 345,000 Page 104 Exhibit 2 Balance December 31 85,385,000 1,345,000 15,045,000 $ 104,615,000 0 2,840,000 101,775,000 CITY OF EDINA, MINNESOTA Schedule of Bonds Payable December 31, 1995 Issue Interest date rate Page 105 Exhibit 3 Maturity Principal date amount Tax Increment Bonds: $4,000,000 Tax Increment Bonds Series 1986A 8/1/86 $150,000 - $600,000 per year 6.60-7.00 08/01/96 -06 $ 3,400,000 Bonds maturing in the years 1996 through 2006 will be called on February 1, 1996. $2,000,000 Tax Increment Bonds, Series 1986B 8/1/86 $150,000 - $200,000 per year 6.60 -7.00 08/01/96 -03 1,350,000 Bonds maturing in the years 1996 through 2003 will be called on February 1, 1996. $10,175,000 Tax Increment Bonds, Series 1988 10/1/88 $75,000 6.50 2/1/96 75,000 $175,000 6.60 2/1/97 175,000 $250,000 - $1,800,000 per year 6.70 -7.30 02/01/98 -09 9,675,000 9,925,000 Bonds maturing in the years 1999 through 2009 will be called on February 1, 1998. (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued $5,100,000 Taxable Tax Increment Bonds, Series 1988 $50,000 $100,000 $125,000 $150,000 $225,000 per year $250,000 $300,000 $350,000 $375,000 $450,000 $650,000 $825,000 $900,000 $8,425,000 Tax Increment Bonds Series 1989 $75,000 $125,000 $200,000 - $1,500,000 per year Page 106 Exhibit 3, Cont. Issue Interest Maturity Principal date rate date amount 10/1/88 9.25 2/1/96 $ 50,000 9.30 2/1/97 100,000 9.35 2/1/98 125,000 9.35 2/1/99 150,000 9.40 02/01/00 -01 450,000 9.45 2/1/02 250,000 9.45 2/1/03 300,000 9.50 2/1/04 350,000 9.55 2/1/05 375,000 9.60 2/1/06 450,000 9.65 2/1/07 650,000 9.70 2/1/08 825,000 9.75 2/1/09 900,000 4,975,000 4/1/89 6.90 2/1/96 75,000 6.90 2/1/97 125,000 6.95 -7.30 02/01/98 -09 8,000,000 8,200,000 Bonds maturing in the years 1999 through 2009 will be called on February 1, 1998. (Continued) Page 107 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Bonds maturing in the years 1997 through 2006 will be called on January 1, 1996. $3,080,000 Tax Increment Bonds, Series 1990 3/1/90 $700,000 - $835,000 per year 6.70 -6.80 02/01/02 -05 3,080,000 All bonds will be called on February 1, 1997. (Continued) Issue Interest Maturity Principal date rate date amount $5,300,000 Taxable Tax Increment Bonds, Series 1989 4/1/89 $50,000 10.00 2/1/96 $ 50,000 $75,000 10.00 2/1/97 75,000 $125,000 10.00 2/1/98 125,000 $175,000 10.00 2/1/99 175,000 $225,000 10.00 2/1/00 225,000 $250,000 10.00 2/1/01 250,000 $275,000 10.00 2/1/02 275,000 $325,000 10.00 2/1/03 325,000 $375,000 per year 10.10 -10.20 02/01/04 -05 750,000 $400,000 10.20 2/1/06 400,000 $700,000 10.25 2/1/07 700,000 $875,000 10.25 2/1/08 875,000 $950,000 10.25 2/1/09 950,000 5,175,000 $12,970,000 Tax Increment Refunding Bond, Series 1989 11/1/89 $1,055,000 - $1,080,000 per year 6.45 -7.00 01/01/96 -06 11,770,000 Bonds maturing in the years 1997 through 2006 will be called on January 1, 1996. $3,080,000 Tax Increment Bonds, Series 1990 3/1/90 $700,000 - $835,000 per year 6.70 -6.80 02/01/02 -05 3,080,000 All bonds will be called on February 1, 1997. (Continued) Page 108 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued (Continued) Issue Interest Maturity Principal date rate date amount $17,930,000 Tax Increment Refunding Bond, Series 1992B 11/1/92 $570,000 4.90% 2/1/99 $ 570,000 $735,000 5.00 2/1/00 735,000 $790,000 5.20 2/1/01 790,000 $1,125,000 5.40 2/1/02 1,125,000 $1,265,000 5.50 2/1/03 1,265,000 $1,410,000 5.60 2/1/04 1,410,000 $1,470,000 5.70 2/1/05 1,470,000 $1,635,000 5.80 2/1/06 1,635,000 $2,515,000 5.90 2/1/07 2,515,000 $3,090,000 5.95 2/1/08 3,090,000 $3,325,000 6.00 2/1/09 3,325,000 17,930,000 $19,580,000 Tax Increment Refunding Bond, Series 1993A 5/1/93 $1,635,000 4.25 2/1197 1,635,000 $1,625,000 4.40 2/1/98 1,625,000 $1,635,000 4.40 2/1/99 1,635,000 $1,610,000 4.60 2/1/00 1,610,000 $1,680,000 4.75 2/1/01 1,680,000 $2,415,000 4.90 2/1102 2,415,000 $2,455,000 5.00 2/1/03 2,455,000 $2,230,000 5.10 2/1/04 2,230,000 $2,555,000 5.10 2/1/05 2,555,000 $1,740,000 5.10 2/1106 1,740,000 19,580,000 Total tax increment bonds 80,635,000 Improvement Bonds: $2,500,000 Improvement Bonds, Series 1986 8/1/86 $250,000 6.60 8/1/96 250,000 (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Issue Interest Maturity date rate date $1,095,000 Improvement Page 109 Exhibit 3, Cont. Principal amount Refunding Bonds, Series 1992E 11/1/92 $195,000 4.00% 2/1/96 $ 195,000 $185,000 4.40 2/1/97 185,000 $185,000 4.70 2/2/98 185,000 $180,000 4.90 2/3/99 180,000 $180,000 5.00 2/4/00 180,000 $170,000 5.20 2/5/01 170,000 1,095,000 Total improvement bonds 1,345,000 Revenue Bonds: $1,200,000 Golf Course Bonds 9/1/85 series 1985 $100,000 - $150,000 per year 8.10 -8.70 01/01/96 -00 650,000 Bonds maturing in the years 1997 through 2000 will be called on January 1, 1996. $2,470,000 Recreational Facility Bonds, Series 1988 10/1/88 $25,000 per year 6.50 -6.60 01/01/96 -97 50,000 $175,000- $325,000 per year 6.70 -7.30 01/01/98 -09 2,320,000 2,370,000 Bonds maturing in the years 1999 through 2009 will be called on January 1, 1998 (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Issue Interest date rate $2,100,000 Recreational Facility Bonds, Series 1989 4/1/89 $80,000 $85,000 $95,000 4195,000 per year Page 110 Exhibit 3, Cont. Maturity Principal date amount 6.90 1/1/96 $ 80,000 6.90 1/1/97 85,000 6.95 -7.30 01/01/98-09 1,655,000 1,820,000 Bonds maturing in the years 1999 through 2009 will be called on January 1, 1998. $3,975,000 Recreational Facility Bonds, Series 1992A $45,000 $70,000 $105,000 $105,000 $130,000 $135,000 $170,000 $200,000 $235,000 $250,000 $260,000 $275,000 $285,000 $305,000 $320,000 $340,000 $360,000 $385,000 11/1/92 4.00 1/1/96 45,000 4.40 1/1/97 70,000 4.70 1/1/98 105,000 4.90 1/1199 105,000 5.00 1/1/00 .130,000 5.20 1/1/01 135,000 5.40 1/1/02 170,000 5.50 1/1/03 200,000 5.60 1/1/04 235,000 5.70 1/1/05 250,000 5.80 1/1/06 260,000 5.90 1/1/07 275,000 5.95 1/1/08 285,000 6.00 1/1/09 305,000 6.00 1/1/10 320,000 6.05 1/1111 340,000 6.05 1/1/12 360,000 6.05 1/1/13 385,000 3,975,000 (Continued) Page 111 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued $1,925,000 Utility Revenue Refunding Bonds, Series 1992D Issue Interest Maturity Principal $370,000 date rate date amount $4,650,000 Recreational Facility 4.40 2/1/97 390,000 Refunding Bonds, Series 1992C 11/1/02 2/1/98 400,000 $115,000 4.40% 1/1/97 $ 115,000 $160,000 4.70 1/1/98 160,000 $325,000 4.90 1/1/99 325,000 $320,000 5.00 1/1/00 320,000 $335,000 5.20 1/1/01 335,000 $360,000 5.40 1/1/02 360,000 $365,000 5.50 1/1/03 365,000 $380,000 5.60 1 /1 /04 380,000 $410,000 5.70 1/1/05 410,000 $435,000 5.80 1/1/06 435,000 $445,000 5.90 1/1/07 445,000 $495,000 5.95 1/1/08 495,000 $505,000 6.00 1/1/09 505,000 4,650,000 $1,925,000 Utility Revenue Refunding Bonds, Series 1992D 11/1/92 $370,000 4.00 2/1/96 370,000 $390,000 4.40 2/1/97 390,000 $400,000 4.70 2/1/98 400,000 $420,000 4.90 2/1/99 420,000 1,580,000 Total revenue bonds 15,045,000 Total bonds payable $ 97,025,000 Page 112 Exhibit 4 CITY OF EDINA, MINNESOTA Schedule of Debt Service Requirements December 31, 1995 Year Tax Increment Bonds Improvement Bonds Revenue Bonds ended Principal Interest Principal Interest Principal Interest 1996 16,770,000 5,029,741 445,000 63,895 1,170,000 895,637 1997 5,190,000 4,303,031 185,000 39,425 685,000 816,508 1998 19,550,000 4,083,034 185,000 31,008 4,640,000 780,334 1999 2,530,000 2,711,492 180,000 22,250 850,000 462,163 2000 2,795,000 2,568,564 180,000 13,340 450,000 430,088 2001 2,945,000 2,407,820 170,000 4,420 470,000 406,618 2002 4,065,000 2,209,199 0 0 530,000 380,088 2003 4,345,000 1,967,346 0 0 565,000 350,240 2004 4,365,000 1,708,688 0 0 615,000 317,483 2005 4,775,000 1,432,701 0 0 660,000 281,453 2006 4,225,000 1,154,837 0 0 695,000 242,488 2007 3,865,000 879,622 0 0 720,000 201,093 2008 4,790,000 561,410 0 0 780,000 156,648 2009 5,175,000 192,313 0 0 810,000 109,143 2010 0 0 0 0 320,000 75,243 2011 0 0 0 0 340,000 55,358 2012 0 0 0 0 360,000 34,183 2013 0 0 0 0 385,000 11,646 2014 0 0 0 0 0 0 $ 85,385,000 31,209,798 1,345,000 174,338 15,045,000 6,006,414 Page 113 Exhibit 5 CITY OF EDINA, MINNESOTA Assessed Valuation, Tax Levies and Mill Rates (shown by year of tax collectibility) Assessed valuation/tax capacity $ 88,124,109 84,393,406 82,244,215 84,055,819 85,775,887 Increment valuation (5,684,605) (7,391,826) (6,207,276) (5,162,771) (4,848,313) Contribution to fiscal disparities pool (9,546,954) (10,366,571) (10,289,650) (8,042,316) (8,442,482) Received from fiscal disparities pool 2,657,724 2,641,657 2,511,902 2,214,875 2,301,627 Taxable valuation $ 75,550,274 69,276,666 68,259,191 73,065,607 74,786,719 Tax levies: General Fund $ 10,182,324 10,485,115 10,927,551 11,390,898 12,178,440 Mill rates: General Fund 13.480 15.092 16.032 15.577 16.331 �^ Page 114 I IJI Peat Marwick LLP - 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 EXhlblt s Independent Auditors' Report on Supplementary Schedule of Federal financial A's`s'istance r Y L 7 r Honorable Mayor and Members of the City Council City of Edina, Minnesota: We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1995, and -have issued our report thereon dated April 26, 1996. These general purpose financial statements are the responsibility of the City of Edina, Minnesota's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance will generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Edina, Minnesota, taken as a whole. The accompanying Schedule of Federal Financial Assistance is.presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. April 26, 1996 ❑ ❑ ❑❑ Member Firm of Klynveld Peat Marwick Goerdeler Federal grantor /pass- through grantor /r)rociram title U.S. Department of HUD: Passed through Hennepin County-- Commuity Development Block Grant" Federal Emergency Management Agency: Passed through State of MN State and Local Warning Grant Total Selected non -major program Exhibit 7 CITY OF EDINA, MINNESOTA Schedule of Federal Financial Assistance Year ended December 31, 1995 Accrued/ Accrued/ Federal Program revenue at revenue at CFDA Pass - through or award December 31, Disbursements December 31, number grantor's number amount 1994 Receipts or expenditures 1995 14.218 B88UC270001 $ 204,554 31,027 175,922 185,435 40,540 83.503 7,622 0 7,622 7,622 0 212,176 31,027 183,544 193,057 40,540 v m co m J nn� K�- P -AI�G Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis; MN 55402 Independent Auditors' Report on Compliance with,General- Re,quirements Applicable to Federal - Financial Assistance Programs, Honorable Mayor and Members of the City Council City of Edina, Minnesota: Pagel 16 Exhibit 8 We have audited the general. purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated April 26, 1996. We have applied procedures to test the City of Edina, Minnesota's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assitance, for the year ended December 31, 1995: • • • • • • • • Political activity; Davis -Bacon Act; Civil rights; Cash management;. Relocation assistance and. real property management; Federal financial reports; Allowable costs /cost principles; Administrative requirements. Our procedures were limited to the applicable procedures: described in the Office of Management 'and: Budget's Compliance Supplement. for Single Audits of State and Local Governments. Our procedures were substantially less- imscope than an audit, the objective of which is the expression of an opinion on the City of Edina,'Minnesota's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the. requirements listed in the second paragraph of this report. With respect�to items not tested, nothing came to our, attention that caused us to believe that the City of Edina, Minnesota, had not complied, in' all material respects, with those requirements. This report is intended for the information Hof management, the City Council and federal and state agencies: However, this, report is a matter of public record and its distribution is not limited. April 26, 1996 nrinl� Member Firm of Klynveld Peat Marwick Gcerdeler Page 117 AINEGN Peat Ma rwick LAP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report-,on Compliance with Specific ;Requirmenti Applicabie To Nonmajor Federal Financial Assistance Program Transactions Honorable Mayor and Members of the City Council City of Edina, Minnesota: Exhibit 9 We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated April 26, 1996. In connection with our audit of the general purpose financial statements of City of Edina, Minnesota, and with our consideration of the City of Edina, Minnesota's control structure used to administer federal financial assistance programs, as required by Office of Management and Budget Circular A -128, Audits of State and Local Govemments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1995. As required by OMB Circular A -128, we have performed auditing procedures to test compliance with the requirements governing: • types of services allowed or unallowed, eligibility, matching, level of effort and /or earmarking requirments, financial reports and claims for advances and reimbursements and special tests and provisions that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an.opinion on City of Edina, Minnesota's compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that City of Edina, Minnesota, had not complied, in all material respects, with those requirements. This report is intended for the information of management, City Council and, federal and statet agencies. However, this report is a matter of public record and its distribution is not limited. April 21, 1995 r Member Firm of Klynveld Peat Marwick Goerdeler o 09N,t Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report on Compliance Based on an Audit of GeneraWurpose, F,inancial,Statements Performed in Accordance with Government^A°uditing Standards; Honorable Mayor and Members of the City Council City of Edina, Minnesota: Page 118 Exhibit 10 We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated April 26, 1996. We conducted our audit in accordance with generally accepted auditing standards and Govemment 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 general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts and grants applicable to the City of Edina, Minnesota, is the responsibility of the City of Edina, Minnesota's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the City of Edina, Minnesota's compliance with certain provisions of laws, regulations, contracts.and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. This report is intended for the information of management, the City Council and federal and state agencies. However, this report is a matter of public record and its distribution is not limited. ` c/ April 26, 1996 . Member Firm of Klynveld Peat Marwick Goerdeler jCPMGJ�'Peat Marwick ALP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Page 119 Exhibit 11 Independent Auditors' Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs - -No Major Programs Honorable Mayor and Members of the City Council City of Edina, Minnesota: We have audited the general purpose financial statements of the City of Edina, Minnesota as of and for the year ended December 31, 1995 and have issued our report thereon dated April 26, 1996. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A -128, Audits of State and Local Governments. Those standards and OMB Circular A -128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. In planning and performing our audit for the year ended December 31, 1995, we considered the City's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the City's general purpose financial statement, and to report on the internal control structure in accordance with OMB Circular A -128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated April 26, 1996. The management of City of Edina, Minnesota is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. Member Firm of J Klynveid Peat Marwick Goerdeler IrCJMW Peat Marwick LLP Page 120 Exhibit 11, Cont. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs in the following categories: • Accounting.controls: - cash receipts system, - cash disbursements system, and - payroll system. General Requirements: - political activity, - Davis -Bacon Act, - civil rights, - cash management, - relocation assistance and real property management, - federal financial reports, - allowable costs /cost principle, - drug -free workplace act, and - administrative requirements. Specific Requirements: - types of services allowed or not allowed; - eligibility; - matching, level of effort, or earmarking; - reporting; and - special tests and provisions. • Federal Financial Reports and Claims for Advances and Reimbursements • Amounts Claimed for Reimbursement or Used for Matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended December 31, 1995, the City of Edina, Minnesota had no major federal financial assistance programs and expended 96 percent of its total federal financial assistance under the following nonmajor federal financial assistance program: Community Development Block Grant. We performed tests of controls, as required by OMB Circular A -128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements, and amounts claimed or used for matching that are applicable to the aforementioned federal,financial assistance program, which is identified in the accompanying Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render and opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. IlFF7 Peat Marwick LL'P Page 121 Exhibit 11, Cont. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material :weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving in the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to management of the City of Edina, Minnesota, in a separate letter dated April 26, 1996. This report is intended for the information of management, City Council and federal and state agencies. However, this report is a matter of public record and its distribution is not limited. z 4�0 April 26, 1996 Page 122 GaPeat Marwick LAP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 12 ... t .rte m.,.,., _. .. ... ... ... , ? t � t Independent Auditors Report on the=Internal'Control Structure 'P Based on an Audit of the General Purpose Financial' St atements. Performed in Accordance with Governmenf.Auditing Standards Honorable Mayor and Members of the City Council City of Edina, Minnesota: We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1995, and have issued our report thereon dated April 26, 1996. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. The management of the City of Edina, Minnesota, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits, and related costs of internal control structure policies and procedures. The objectives of.an internal control structure,are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed. in accordance with management's authorization and recorded properly to permit the.preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors -or irregularities may nevertheless. occur and-not be detected. Also projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit of the general-purpose financial statements of the City of Edina, Minnesota, for the year ended December 31, 1995, we obtained an understanding of the internal control•structure:r With: respect•to <the{internal .control structure, we obtained an understanding of the relevant policies and procedures` and whether they have been placed in operation, and we assessed control risk in 'order to determine our auditing procedures for the purpose of expressing our opinion on4he general purpose financial statements and not to provide an opinion on' the internalrcontrol structure. Accordingly, we do not express such an opinion. .<f' Member Firm of Klynveld Peat Marwick Goerdeler Peat Marwick LLP page 123 Exhibit 12, Cont. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses, under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that; errors orir,. "reguIanties`in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timelyperiod by, employees. in the normal course of performing their assigned function. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to management of the City of Edina, Minnesota, in a separate letter dated April 26, 1996. This report is intended for the information of management, City Council, and federal and state agencies. However, this report is a matter of public record and its distribution is not limited. G2ty 'lam LL/' April 26, 1996 CITY OF EDINA, MINNESOTA Schedule of Findings and Questioned Costs Year ended December 31, 1995 Current Year Finding None. Prior Year Finding Page 124 Exhibit 13 Questioned Cost $0 The City of Edina has a formal drug -free workplace policy, but has not notified all employees regarding this policy as required by federal laws and regulations. $0 Current Status During March 1995, the City provided all employees training regarding the drug -free workplace policy. C Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report on Minnesota Legal Compliance .a r Honorable Mayor and Members of the City Council City of Edina, Minnesota: 'Page 125 Exhibit 14 We have audited the. general purpose financial statements of the City of Edina, Minnesota(the. City) as of and for the year ended December 31, 1995, and have issued our report thereon dated April 26, 1996. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated by the Legal Compliance Task Force pursuant to Minnesota - Statute 6:65. Accordingly, the audit included such.tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our tests indicate that for the items tested, the City complied with the material terms and, conditions of applicable legal provisions. Further, for the items listed; based on our audit and the procedures referred .to above, nothing came to our attention to indicate that the City had not complied with such legal provisions. This report is intended solely for the use of the City and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report, which is a matter of public record. April 26, 1996 ❑ Member Firm of Klynveld Peat Marwick Goerdeler 4 .. 5 STATISTICAL SECTION Table 1 CITY OF EDINA, MINNESOTA General Governmental Expenditures by Function (a) Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. .D m co m J N Unallocated Fiscal General Public Public general Capital Debt year government safety works Parks expenditures Other outlay service Total 1986 $ 1,383,353 4,520,851 2,444,260 1,068,170 350,475 825,817 9,443,950 3,571,172 23,608,048 1987 1,425,939 4,762,906 2,209,872 1,369,848 340,300 868,647 9,075,508 3,999,429 24,052,449 1988 1,655,826 5,122,392 2,441,928 1,471,741 321,166 1,049,684 19,875,745 4,120,163 36,058,645 1989 1,823,403 5,345,763 2,502,980 1,654,159 300,142 1,094,418 8,857,367 4,850,967 26,429,199 1990 1,937,867 5,855,776 2,719,479 1,570,886 646,345 679,889 8,456,658 5,833,141 27,700,041 1991 1,996,628 6,116,844 2,862,383 1,787,171 617,117 981,143 8,003,595 5,863,425 28,228,306 1992 1,987,784 6,218,655 2,750,808 2,137,194 588,319 4,429,119 586,679 5,963,850 24,662,408 1993 1,999,863 6,544,220 2,990,247 1,744,807 117,451 1,877,110 496,334 6,647,360 22,417,392 1994 2,097,521 6,774,592 2,985,893 1,725,641 180,589 3,273,848 700,451 7,333,466 25,072,001 1995 2,069,527 7,251,129 3,160,831 1,850,610 309,152 5,389,205 804,587 7,873,815 28,708,856 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. .D m co m J N v co Q N 4 Table 2 CITY OF EDINA, MINNESOTA General Governmental Revenues by Source (a) Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Interest on funds Licenses Charges held with Sales and Fiscal Special Franchise and Inter- for Fines and Interest on fiscal rental of year Taxes assessments Fee permits governmental services forfeitures investments agent property Miscellaneous Totals 1986 $ 7,850,460 0 0 695,898 2,027,833 772,920 401,203 1,594,460 0 135,871 58,865 13,537,510 1987 8,486,440 1,787,962 58,683 710,282 •3,010,203 652,389 515,172 785,228 0 152,495 182,109 16,340,963 1988 9,853,560 1,500,050 48,528 623,760 2,425,720 740,708 532,257 533,647 0 127,846 130,766 16,516,842 1989 11,050,785 936,026 49,969 893,191 3,548,522 873,549 467,957 1,737,726 0 151,180 1,613,999 21,322,904 1990 12,968,717 936,042 96,715 874,298 572,262 1,235,812 494,009 1,289,470 0 133,809 2,432,752 21,033,886 1991 14,425,200 980,689 133,680 850,897 580,561 1,287,524 437,433 875,320 0 124,149 437,429 20,132,882 1992 15,935,816 1,563,993 168,122 820,007 1,000,395 1,360,233 471,038 424,622 0 100,000 3,107,110 24,951,336 1993 17,505,272 991,394 260,039 1,037,783 1,749,631 1,167,446 350,582 431,976 1,443,530 100,765 205,432 25,243,850 1994 17,637,458 1,087,831 206,261 947,122 1,807,826 1,251,603 322,992 570,568 1,727,103 100,632 1,112,360 26,771,756 1995 15,534,902 858,897 209,519 1,070,352 5,693,802 1,510,470 545,996 396,397 1,742,621 4,056 701,240 28,268,252 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. v co Q N 4 Table 3 CITY OF EDINA, MINNESOTA Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) m co M N Percent Percent of Percent Adjustments/ of total tax outstanding of total Delinquent collections Outstanding delinquent Fiscal Total tax Current tax tax levy tax Total tax to total delinquent taxes to year levy collections collected collections collections tax levy taxes total tax levy 1986 $ 7,440,298 7,368,782 99.04% 98,170 7,466,952 100.36% 77,224 1.04% 1987 8,045,584 7,904,551 98.25% 61,041 7,965,592 99.01% 189,063 2.35% 1988 8,569,599 8,463,929 98.77% 71,756 8,535,685 99.60% 182,013 2.12% 1989 8,996,391 8,764,316 97.42% 68,377 8,832,693 98.18% 198,204 2.20% 1990 9,992,692 9,752,024 97.59% 83,684 9,835,708 98.43% 158,558 1.59% 1991 10,384,072 10,129,419 97.55% 38,558 10,167,977. 97.92% 241,915 2.33% 1992 10,182,324 9,887,842 97.11% 126,956 10,014,798 98.35% 274,437 2.70% 1993 10,485,115 9,989,612 95.27% (2,977) 9,986,635 95.25% 204,153 1.95% 1994 10,927,551 10,691,572 97.84% 5,819 10,697,391 97.89% 154,482 1.41% 1995 11,390,898 11,198,647 98.31% (67,047) 11,131,600 97.72% 88,399 0.78% m co M N CITY OF EDINA, MINNESOTA Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Real property Assessment Assessed value/ Estimated year tax capacity market value 1986 $ 725,895,608 2,610,642,350 1987 768,050,021 2,807,510,000 1988 (a) 100,735,332 3,061,404,810 1989 87,055,570 3,212,261,700 1990 90,320,919 3,388,087,700 1991 87,214,668 3,496,892,900 1992 83,480,350 3,568,897,100 1993 81,413,953 3,607,576,600 1994 83,136,702 3,733,888,400 1995 85,775,887 3,849,796,600 Note: (a) In 1988, assessed value was replaced by tax capacity. Page 129 Table 4 Ratio of total assessed value/ tax capacity to total estimated market value 27.81% 27.36% 3.29% 2.71% 2.67% 2.49% 2.34% 2.26% 2.23% 2.23% Page 130 Table 5 CITY OF EDINA, MINNESOTA Property Tax Rates -All Overlapping Governments (per $100 of assessed value) Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) City of Edina Special Fiscal General Revenue School year Fund Funds Total District County Other Total 1986 $ 11.303 - 11.303 45.033 29.688 7.853 93.877 1987 11.954 - 11.954 43.065 .29.356 7.812 92.187 1988 12.151 - 12.151 44.838 31.675 8.659 97.323 1989(a) 9.887 - 9.887 43.477 27.101 7.371 87.836 1990 12.959 - 12.959 42.369 27.916 7.046 90.290 1991 12.879 - 12.879 45.490 30.114 8.441 96.924 1992 13.480 - 13.480 51.823 34.327 6.633 106.263 1993 15.092 - 15.092 63.743 35.839 7.629 122.303 1994 16.032 - 16.032 61.417 37.441 7.515 122.405 1995 15.577 - 15.577 57.975 37.454 6.851 117.857 Note: (a) In 1989, mill rates were replaced by tax capacity rates. Table 6 CITY OF EDINA, MINNESOTA Special Assessment Collections Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) d co m w Percentage Collection Percentage Collection of total Total of current of levy of prior Total collections outstanding Year Total levy years levy collected year's levy collections to total levy assessments 1986 $ 1,262,257 1,200,287 95.09% 31,599 1,231,886 97.59% 180,501 1987 1,292,379 1,257,033 97.27% 31,579 1,288,612 99.71% 47,059 1988 1,071,212 1,044,584 97.51% 6,478 1,051,062 98.12% 67,209 1989 787,932 736,574 93.48% 66,768 803,342 101.96% 47,894 1990 782,763 738,498 94.35% 12,937 751,435 96.00% 56,861 1991 586,124 558,429 95.27% 24,934 583,363 99.53% 78,101 1992 998,069 977,184 97.91% 39,851 1,017,035 101.90% 27,228 1993 834,099 826,178 99.05% 12,890 839,068 100.60% 22,259 1994 807,324 800,456 99.15% 5,622 806,078 99.85% 27,523 1995 786,480 779,517 99.11% 7,508 787,025 100.07% 26,223 d co m w Table 7 CITY OF EDINA, MINNESOTA Ratio of Net General Bonded Debt to Assessed Value/Tax Capacity and Net Bonded Debt Per Capita Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) *Source: Metropolitan Council estimate Notes: (a) Official population per 1991 census. (b) Includes all long -term general obligation debt. (c) In 1988, assessed value was replaced by tax capacity. T W co m W N Ratio of Net net bonded Net assessed Debt debt to bonded value /tax Gross service assessed debt Fiscal capacity (in bonded monies Net bonded value /tax per year `Population thousands) debt (b) available debt capacity capita 1986 45,523 673,941 30,185,000 1,335,954 28,849,046 4.28% 634 1987 45,924 705,560 28,400,000 1,017,238 27,382,762 3.88% 596 1988(c) 46,095 90,975 47,305,000 2,513,806 44,791,194 49.23% 972 1989 44,943 79,805 64,060,000 1,202,505 62,857,495 78.76% 1,399 1990 46,070 (a) 80,438 65,435,000 1,026,815 64,408,185 80.07% 1,398 1991 46,070 75,550 63,565,000 1,026,815 62,538,185 82.78% 1,357 1992 46,079 69,276 90,880,000 26,899,229 63,980,771 92.36% 1,389 1993 46,916 68,259 108,165,000 45,994,060 62,170,940 91.08% 1,325 1994 46,984 73,066 104,615,000 44,810,021 59,804,979 81.85% 1,273 1995 46,841 74,787 101,775,000 43,265,984 58,509,016 78.23% 1,249 *Source: Metropolitan Council estimate Notes: (a) Official population per 1991 census. (b) Includes all long -term general obligation debt. (c) In 1988, assessed value was replaced by tax capacity. T W co m W N CITY OF EDINA, MINNESOTA Computation of Legal Debt Margin December 31, 1995 (Unaudited - see accompanying accountants' report) Estimated market value of taxable property Debt limit -2.00% of total estimated market value Amount of debt applicable to debt limit: Total bonded debt Less: Other deductions allowed by law: Tax increment bonds Improvement bonds Revenue bonds Total deductions Total amount of debt applicable to debt limit Legal debt margin $ 85,385,000 1,345,000 15,045,000 $ 101,775,000 101,775,000 Page 133 Table 8 $ 3,849,796,600 76,995,932 L $ 76,995,932 CITY OF EDINA, MINNESOTA Computation of Overlapping Debt December 31, 1995 (Unaudited - see accompanying accountants' report) Jurisdiction City of Edina Hennepin County IDS #273 (Edina) IDS #270 (Hopkins) IDS #271 (Bloomington) IDS #272 (Eden Prairie) IDS #280 (Richfield) IDS #283 (St. Louis Park) Metro Council Metro Transit Hennepin County Regional Parks Percentage applicable Net debt to City of outstanding Edina Page 134 Table 9 Amount applicable to City of Edina $ 58,509,016 100.00% $ 58,509,016 74,413,095 8.03% 5,975,372 35,825,348 98.29% 35,212,735 48,708,676 7.02% 3,419,349 11,194,694 0.02% 2,239 93,113,198 1.29% 1,201,160 34,789,522 33.47% 11,644,053 14,459,275 0.01% 1,446 89,625,527 4.25% 3,809,085 1,400,000 4.68% 65,520 16,048,246 0.92% 147,644 $ 119,987,619 Page 135 Table 10 CITY OF EDINA, MINNESOTA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Notes: (a) Includes General, Special Revenue, and Debt Service Funds. Ratio of total debt service Total to total Fiscal debt Total general general year Principal Interest service expenditures (a) expenditures 1986 $ 1,650,000 1,921,172 3,571,172 14,450,898 24.71% 1987 1,700,000 2,299,429 3,999,429 14,843,024 26.94% 1988 1,950,000 2,170,163 4,120,163 16,336,066 25.22% 1989 1,800,000 3,037,525 4,837,525 17,299,271 27.96% 1990 1,485,000 4,348,141 5,833,141 19,421,089 30.04% 1991 1,480,000 4,386,400 5,866,400 20,559,514 28.53% 1992 1,790,000 4,173,850 5,963,850 19,610,522 30.41% 1993 1,800,000 4,847,360 6,647,360 21,384,897 31.08% 1994 1,185,000 6,148,466 7,333,466 25,072,001 29.25% 1995 2,495,000 5,376,893 7,871,893 28,667,916 27.46% Notes: (a) Includes General, Special Revenue, and Debt Service Funds. CITY OF EDINA, MINNESOTA Revenue Bond Coverage Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Net revenue Direct* available Gross operating for debt Fiscal year revenue expenses service Utility Bond Table 11 Debt service requirements Principal Interest Total Coverage 1986 $ 3,621,775 3,726,699 (104,924) 0 0 0 0 1987 4,149,444 4,127,469 21,975 0 0 0 0 1988 4,285,722 4,842,797 (557,075) 0 0 0 0 1989 5,539,373 4,839,753 699,620 0 172,418 172,418 406 1990 5,197,400 4,761,182 436,218 170,000 194,382 364,382 119 1991 6,399,204 5,583,502 815,702 250,000 175,245 425,245 192 1992 5,867,015 5,365,942 501,073 275,000 169,233 444,233 131 1993 7,122,636 6,238,142 884,494 300,000 214,791 514,791 172 1994 7,011,288 6,602,736 408,552 2,165,000 155,573 2,320,573 18 1995 7,513,149 7,054,794 458,355 345,000 78,182 423,182 108 Recreational Facility Bonds 1986 1,158,660 1,177,380 (18,720) 50,000 99,512 149,512 0 1987 1,424,381 1,206,116 218,265 85,000 97,690 182,690 119 1988 1,703,728 1,431,693 272,035 50,000 161,182 211,182 129 1989 2,348,220 1,725,118 623,102 50,000 346,201 396,201 157 1990 2,453,425 1,993,388 460,037 50,000 411,298 461,298 100 1991 2,413,488 2,248,196 165,292 140,000 407,690 547,690 30 1992 2,552,605 2,288,778 263,827 195,000 398,127 593,127 44 1993 4,523,957 4,269,570 254,387 195,000 707,454 902,454 28 1994 4,316,707 4,732,653 (415,946) 200,000 854,920 1,054,920 0 1995 5,032,666 4,871,684 160,982 0 839,244 839,244 19 v co m w rn CITY OF EDINA, MINNESOTA Property and Construction Values Last Ten Fiscal years (Unaudited - see accompanying accountants' report) Commercial Residential construction construction Fiscal Number of Number of year permits Value permits Value Table 12 Property value* Commercial Residential 1986 5 $ 18,034,760 397 39,909,000 567,688,400 2,042,953,950 1987 342 19,797,541 551 30,600,000 621,601,700 2,185,908,300 1988 336 22,100,000 560 26,327,000 667,282,000 2,392,686,800 1989 407 65,000,000 86 11,463,231 681,372,900 2,530,888,800 1990 378 37,299,553 605 31,762,558 713,876,500 2,674,211,200 1991 518 21,596,135 546 22,781,128 751,280,100 2,745,612,800 1992 415 18,371,703 647 22,086,178 767,495,300 2,801,401,800 1993 396 35,014,704 673 27,505,219 711,471,100 2,896,105,500 1994 267 14,695,441 689 29,985,727 691,570,800 3,042,317,600 1995 274 14,349,143 564 28,064,106 668,098,800 3,181,697,800 *Assessor's market. m co m J W Page 138 Table 13 CITY OF EDINA, MINNESOTA Principal Taxpayers December 31, 1995 (Unaudited - see accompanying accountants' report) 1995 tax Taxpayer Type of Business capacity Southdale Shopping center $ 7,836,222 Gabberts and Galleria Shopping center 1,724,550 Southdale Office Park Office building 848,480 Pentagon Office Park Office building 798,800 Southdale Medical Building Office building 665,400 Centennial Lakes Center Retail 632,234 Cedars of Edina Apartments 538,556 United Health Care Corporation Office building 498,484 National Car Office Building 471,018 Target Retail 390,664 Jerry's Retail Center Retail & Office 373,190 7373 France Avenue South Medical Office 363,511 Durham Apartments 356,796 Rembrandt Heritage Senior Residence 334,159 York Plaza Apartments 300,560 Edina Towers Apartments 277,610 Edinborough Office East Office building 276,000 General Motors Office /Industrial 259,947 Lincoln Drive Apartments Apartments 255,177 Vernon Terrace Senior Apartments 247,520 Page 139 Table 14 CITY OF EDINA, MINNESOTA Major Employers in the City December 31, 1995 (Unaudited - see accompanying accountants' report) Approximate Number Employer Product/Service of Employees Fairview Southdale Hospital United Healthcare Corporation National Interrent Alliant Techsystems Golden Valley Microwave Foods Edina Realty Dayton's J.C. Penney Regis Corporation City of Edina Honeywell Health Care 2,100 Health Care 1,200 Car Leasing (Corporate Headquarters) 1,000 Military Ordnance 670 Manufacturing 650 Real Estate (Corporate Headquarters) 500 Department Store 500 Department Store 400 Beauty Salons (Corporate Headquarters) 300 Government 240 Field Services 164 Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic Development, May, 1995 CITY OF EDINA, MINNESOTA Labor Force Data December 31, 1995 (Unaudited - see accompanying accountants' report) October 1995 Civilian Unemployment Labor Force Rate Hennepin County 647,819 3.0% Mpls. -St. Paul MSA 1,609,558 2.9 State of Minnesota 2,587,426 3.7 Source: Minnesota Department of Economic Security. Page 140 Table 15 October 1994 Civilian Unemployment Labor Force Rate 658,839 3.2% 1,606,457 3.1 2,612,622 3.4 CITY OF EDINA, MINNESOTA Miscellaneous Statistics December 31, 1995 (Unaudited - see accompanying accountants' report) Date of incorporation December 17, 1888 Date of adoption of Council- Manager Plan January 1, 1955 Present form of government Council- Manager Fiscal year begins January 1 Area of City 16 square miles Percent of City developed with buildings 97% Miles of streets and sewers: Total streets (including state and county) 224 miles Sanitary sewer 186.22 miles Sewer connections 13,783 Fire protection: Number of stations 1 Number of employees (full time) 30 Police protection: Number of stations 1 Number of employees (full time) 54 Park areas: Present park acres and open space 1,600 Total improved park acres 1,007 Number of parks 38 Private golf courses 2 Public golf courses 3 Municipal water plant: Number of wells 18 Miles of watermain 198.81 Gallons of storage 7 million Number of consumers 14,025 Page 141 Table 16 (Continued) Page 142 Table 16, Cont. CITY OF EDINA, MINNESOTA Miscellaneous Statistics, Continued Population: 1930 3,138 1940 5,855 1950 9,744 1960 28,501 1965 (special census) 35,302 1970 44,046 1975 (estimated April 1) 49,736 1980 (census) 46,073 1981 (estimated April 1) 46,080 1982 (estimated April 1) 45,370 1983 (estimated April 1) 45,340 1984 (estimated April 1) 45,280 1985 (estimated April 1) 44,940 1986 (estimated April 1) 45,523 1987 (estimated April 1) 45,924 1988 (estimated April 1) 46,095 1989 (estimated April 1) 44,943 1990 (census) 46,070 1991 (estimated) 46,070 1992 (estimated May 1992) 46,079 1993 (estimated June 1993) 46,916 1994 (estimated June 1994) 46,984 1995 (estimated June 1995) 46,841 Sources of funds: Bond proceeds Tax increments received Real estate sales* State aid Special assessments Parking permits Community develop- ment Interest on invested funds Other Total sources of funds Uses of funds: Land acquisition Installation of public utilities and improvements Bond payments Principal Interest Administrative costs Work orders Contingencies Interest Miscellaneous Total uses of funds Funds remaining (or deficient) - *Real estate sales Liquor store site Union oil site Page 143 Table 17 CITY OF EDINA, MINNESOTA Sources and Uses of Public Funds for 50th & France -No. 1200, a Tax Increment Financing District (Districts 1200, 1201, 1203, and 1204 are pooled) (Unaudited -see accompanying accountants' report) December 31, 1995 Cost to authority $ 128,064 134,506 $ 262,570 105,002 65,780 170,782 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ 2,200,000 5,280,000 5,274,658 0 5,342 0 18,817,930 10,099,681 1,144,429 7,573,820 800,000 170,782 170,782 0 0 0 418,870 418,870 0 0 0 1,321,096 728,505 0 592,591 0 38,208 157,254 14,827 (133,873) 0 214,828 186,064 0 28,764 0 0 241,353 78,035 (319,388) 0 0 4,162 0 (4,162) 3,000,000 26,261,714 17,281,329 1,237,291 7,743,094 0 647,551 647,539 0 12 3,000,000 6,257,748 5,812,930 0 444,818 0 5,280,000 2,200,000 0 3,080,000 0 4,738,329 2,657,961 207,195 1,873,173 0 69,260 605,083 75,000 (610,823) 0 16,825 16,257 0 568 0 12,300 11,644 0 656 0 9,400 363,037 0 (353,637) 0 7,100 23,002 33,884 (49,786) 3,000,000 17,038,513 12,337,453 316,079 4,384,981 0 9,223,201 4,943,876 921,212 3,358,113 Cost to authority $ 128,064 134,506 $ 262,570 105,002 65,780 170,782 Page 144 Table 18 CITY OF EDINA, MINNESOTA Sources and Uses of Public Funds for Southeast Edina Redevelopment District -No. 1201, a Tax Increment Financing District (Districts 1200, 1201, 1203, and 1204 are pooled) (Unaudited -see accompanying accountants' report) Sources of funds: Bond proceeds Tax increments received Real estate sales' Community develop- ment Block Grant Interest on invested funds Other Total sources of funds Uses of funds: Land acquisition Installation of public utilities and improvements Bond payments Principal Interest Administrative costs Site improvements or preparation costs Parkland dedication fees Total uses of funds Funds remaining (or deficient) 'Real estate sales Retail site Hotel site Elderly site Office site December 31, 1995 Cost to authority $ 8,350 192,915 453,740 1,027,277 $ 1,682,282 Price paid by developer 11,899 192,915 346,534 784,563 1,335,911 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ 6,165,177 21,470,000 20,219,852 0 1,250,148 0 85,000,000 20,047,358 2,430,504 62,522,138 598,005 1,750,000 1,335,911 0 414,089 0 0 189,221 0 (189,221) 0 0 1,930,542 0 (1,930,542) 0 0 25,931 0 (25,931) 6,763,182 108,220,000 43,748,815 2,430,504 62,040,681 6,682,998 15,278,569 10,479,127 0 4,799,442 2,885,484 2,392,303 468,098 0 1,924,205 0 21,470,000 6,300,000 375,000 14,795,000 0 17,000,000 14,364,565 945,175 1,690,260 194,700 2,466,200 2,033,381 27,985 404,834 0 21,894,254 15,397,695 0 6,496,559 0 0 767,852 0 (767,852) 9,763,182 80,501,326 49,810,718 1,348,160 29,342,448 (3,000,000) 27,718,674 (6,061,903) 1,082,344 32,698,233 Cost to authority $ 8,350 192,915 453,740 1,027,277 $ 1,682,282 Price paid by developer 11,899 192,915 346,534 784,563 1,335,911 Page 145 Table 19 CITY OF EDINA, MINNESOTA Sources and Uses of Public Funds for Grandview Area Redevelopment District -No. 1202, a Tax Increment Financing District (Unaudited -see accompanying accountants' report) Sources of funds: Bond proceeds Tax increments received Interest on invested funds Other Total sources of funds Uses of funds: Installation of public utilities and improvements Bond payments Principal Interest Administrative costs Total uses of funds Funds remaining (or deficient) December 31, 1995 4,310,000 4,310,000 Accounted 399,631 1,898,180 Original Amended for in Current Amount budget budget prior years year remaining 190,000 190,000 359,210 $ 4,500,000 4,500,000 1,971,603 0 2,528,397 0 10,531,072 3,650,542 603,486 6,277,044 0 0 77,974 0 (77,974) 0 0 6,731 0 (6,731) 4,500,000 15,031,072 5,706,850 603,486 8,720,736 4,310,000 4,310,000 2,012,189 399,631 1,898,180 0 2,000,000 500,000 150,000 1,350,000 0 1,539,950 990,800 102,225 446,925 190,000 190,000 359,210 52,097 (221,307) 4,500,000 8,039,950 3,862,199 703,953 3,473,798 0 6,991,122 1,844,651 (100,467) 5,246,938 CITY OF EDINA, MINNESOTA Sources and Uses of Public Funds for Southeast Edina Redevelopment District -No. 1203, a Tax Increment Financing District (Districts 1200, 1201, 1203, and 1204 are pooled) (Unaudited -see accompanying accountants' report) Sources of funds: Bond proceeds Tax increments received Real estate sales' Interest on invested funds Other Total sources of funds Uses of funds: Land acquisition Site improvements or preparation costs Bond payments Principal Interest Administrative costs Total uses of funds Funds remaining (or deficient) 'Real estate sales Retail and theater site Medical office site Office site December 31, 1995 Accounted Original Amended for in Current budget budget prior years year $ 41,400,000 41,400,000 26,688,323 0 Page 146 Table 20 Amount remaining 14,711,677 80,000,000 80,000,000 4,287,976 1,278,737 74,433,287 5,000,000 5,000,000 4,785,972 0 214,028 0 0 1,820,425 51,909 (1,872,334) 0 0 568,410 431 (568,841) 126,400,000 126,400,000 38,151,106 1,331,077 86,917,817 13,900,000 13,900,000 15,137,870 0 (1,237,870) 26,677,000 26,677,000 7,494,098 5,578 19,177,324 41,400,000 41,400,000 0 500,000 40,900,000 38,000,000 38,000,000 13,203,101 2,030,019 22,766,880 1,140,800 1,140,800 1,075,885 33,820 31,095 121,117,800 121,117,800 36,910,954 2,569,417 81,637,429 5,282,200 5,282,200 1,240,152 (1,238,340) 5,280,388 Cost to authority $ 3,213,720 815,092 757,160 $ 4,785,972 e paid by develo 3,213,720 815,092 757,160 4,785,972 Page 147 Table 21 CITY OF EDINA, MINNESOTA Sources and Uses of Public Funds for Southeast Edina Economic Development District -No. 1204, a Tax Increment Financing District (Districts 1200, 1201, 1203, and 1204 are pooled) (Unaudited -see accompanying accountants' report) December 31, 1995 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds $ 9,400,000 9,400,000 0 0 9,400,000 Tax increments received 22,657,749 22,657,749 5,080,718 352,207 17,224,824 Interest on invested funds 0 0 238,757 179,966 (418,723) Other 0 0 0 0 0 Total sources of funds 32,057,749 32,057,749 5,319,475 532,173 26,206,101 Uses of funds: Land acquisition 50,000 50,000 0 0 50,000 Installation of public utilities and improvements 5,800,000 5,800,000 188,720 0 5,611,280 Transit equipment 450,000 450,000 0 0 450,000 Transit improvement 1,100,000 1,100,000 0 0 1,100,000 Capitalized interest 500,000 500,000 0 0 500,000 Debt service 22,657,749 22,657,749 0 0 22,657,749 Administrative costs 500,000 500,000 0 0 500,000 Total uses of funds 31,057,749 31,057,749 188,720 0 30,869,029 Funds remaining (or deficient) 1,000,000 1,000,000 5,130,755 532,173 (4,662,928) Page 148 Table 22 CITY OF EDINA, MINNESOTA Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District (Unaudited -see accompanying accountants' report) Sources of funds: Bond proceeds Tax increments received Interest on invested funds Other Total sources of funds Uses of funds: Land acquisition Installation of public utilities and improvements Demolition Relocation Capitalized Interest Debt service Administrative costs Total uses of funds Funds remaining (or deficient) December 31, 1995 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ 1,911,000 1,911,000 0 0 1,911,000 2,177,855 2,177,855 51,781 67,100 2,058,974 0 0 0 0 0 0 0 0 0 0 4,088,855 4,088,855 51,781 67,100 3,969,974 529,400 529,400 0 0 529,400 325,000 325,000 89,468 0 235,532 150,000 150,000 0 0 150,000 160,000 160,000 0 0 160,000 150,000 150,000 0 0 150,000 2,178,455 2,178,455 0 0 2,178,455 596,000 596,000 0 5,000 591,000 4,088,855 4,088,855 89,468 5,000 3,994,387 0 0 3( 7,687) 62,100 (24,413)