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Home My WebLink About1996 Comprehensive Annual Financial ReportA, ow coflporu-1 1089 M r" "" m .. .1 R-m . L9 CITY OF EDINA, MINNESOTA 1996 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,1996 "F r:" 7, 11) CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report Year ended December 31, 1996 Department of Finance John Wallin--Treasurer and Finance Director Eric Anderson—Assistant Finance Director Peggy Gibbs—Accountant CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report Year ended December 31, 1996 Department of Finance John Wallin--Treasurer and Finance Director Eric Anderson—Assistant Finance Director Peggy Gibbs—Accountant CITY OF EDINA, MINNESOTA TABLE OF CONTENTS PART I -- INTRODUCTORY SECTION Page Elected and Appointed Officials .................................................................. ............................... 1 Lettersof Transmittal .................................................................................. ............................... 2 PART II -- FINANCIAL SECTION IndependentAuditors' 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: BalanceSheet ...................................................................................... ............................... 46 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual ................................................. ............................... 47 Schedule of Revenues — Budget and Actual ...................................... ............................... 48 Schedule of Expenditures — Budget and Actual ................................. ............................... 49 Schedule of Central Services Expenditures — Budget and Actual ..... ............................... 56 Special Revenue Funds: Combining Balance Sheet ............................................... ............................... Combining Statement of Revenues, Expenditures and Changes in FundBalance ................................................................ ............................... Debt Service Funds: Combining Balance Sheet ................................. ............................... Combining Statement of Revenues, Expenditures and Changes in FundBalance .................................................. ............................... ................ 58 ............... 59 .................... 61 .......................... 62 CITY OF EDINA, MINNESOTA Table of Contents, Continued Combining and Individual Fund and Account Group Financial Statements (Continued): Capital Project Funds: Combining Balance Sheet ................................. ............................... Combining Statement of Revenues, Expenditures and Changes in Fund Balance ( Deficit) .................................... ............................... Enterprise Funds: Page ............... 64 ............... 65 CombiningBalance Sheet ..................................................................... .............................67 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ....... 69 Combining Statement of Cash Flows .................................................. ............................... 71 Utilities Fund: BalanceSheet ............................................................................... ............................... 73 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 74 Statement of Cash Flows .............................................................. ............................... 76 Liquor Fund: BalanceSheet ............................................................................:.. ............................... 77 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 78 Statement of Cash Flows .............................................................. ............................... 79 Schedule of Operating Expenses .................................................. ............................... 80 Swimming Pool Fund:. BalanceSheet ............................................................................... ............................... 81 Statement of Revenues, Expenses and Changes in. Retained Earnings ................... 82 Statementof Cash Flows .............................................................. ............................... 83 Golf Course Fund BalanceSheet ............................................................................... ............................... 84 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 85 Statementof Cash Flows .............................................................. ............................... 86 Schedule of Operating Expenses .................................................. ............................... 87 Arena Fund: BalanceSheet ............................................................................... ............................... 88 Statement of Revenues, Expenses and Changes in Retained Earnings ................... 89 Statement of Cash Flows .............................................................. ............................... 90 Gun Range Fund: BalanceSheet ............................................................................... .......:....................... 91 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 92 Statement of Cash Flows .............................................................. ............................... 93 Art Center Fund: BalanceSheet ............................................................................... ............................... 94 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 95 Statement of Cash Flows .............................................................. ............................... 96 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Combining and Individual Fund and Account. Group Financial Statements (Continued): Edinborough Park/Centennial Lake Fund: BalanceSheet ............................................................................... ............................... 97 Statement of Revenues, Expenses and Changes in Retained Earnings ................... 98 Statementof Cash Flows .............................................................. ............................... 99 Agency Funds: Statement of Changes in Assets and Liabilities ..... ............................... ............................101 General Fixed Assets Account Group: Schedule of General Fixed Assets ......................... ............................... ............................ 103 General Long -term Debt Account Group: Schedule of General Long -term Debt ................................................. ............................... 105 Supplementary Information: Exhibit Page Combined Schedule of Bonded Indebtedness ..................... Exhibit 1 .... ............................106 Schedule of Changes in Bonded Indebtedness ................... Exhibit 2 .... ............................108 Schedule of Bonds Payable ................... ............................... Exhibit 3 .... ............................109 Schedule of Debt Service Requirements ............................. Exhibit 4 .... ............................114 Assessed Valuation, Tax Levies and Mill Rates .................. Exhibit 5 .... ............................115 Independent Auditors' Report on Supplementary Schedule of Federal Financial Assistance ......................... Exhibit 6 .... ............................116 Schedule of Federal Financial Assistance ........................... Exhibit 7 .... ............................117 Independent Auditors' Report on Compliance with General Requirements Applicable.to Federal Financial Assistance Programs ............................ Exhibit 8 .... ............................118 Federal Financial Assistance Program Transactions........... Exhibit 9 .... ............................119 Independent Auditors' Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Govemment Auditing Standards ............................... Exhibit 10 ... ............................120 Independent Auditors' Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs —No Major Programs ...................... Exhibit 11 ... ............................121 CITY OF EDINA, MINNESOTA Table of Contents, Continued Supplementary Information (Continued): Independent Auditors' Report on the Internal Control Structure Based on an Audit of the General Purpose Financial Statements Performed in Accordance with Govemment Auditing Standards ......................... Independent Auditors' Report on Minnesota Legal Compliance.................................. ............................... Schedule of Findings on Legal Compliance .................. PART 111 -- STATISTICAL SECTION N Exhibit Page Exhibit 12 ............................... 124 Exhibit 13 ... ............................126 Exhibit 14 ... ............................127 Table Page General Governmental Expenditures by Function Last Ten Fiscal Years ............................. ............................... Table 1 ..... ............................128 General Governmental Revenues by Source Last Ten Fiscal Years ............................. ............................... Table 2 ..... ............................129 Property tax Levies and Collections — Last Ten FiscalYears ............................................ ............................... Table 3 ..... ............................130 Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property ............................... :......... Table 4 ..... ............................131 Property Tax Rates — All Overlapping Governments Last Ten Fiscal Years ............................. ............................... Table 5 .. ............................... 132 Special Assessment Collections — Last Ten FiscalYears ............................................ ............................... Table 6 Ratio of Net General Bonded Debt to Assessed Value/Tax Capacity and Net Bonded Debt per Capita — Last Ten Fiscal Years .............. ............................... Table 7 Computation of Legal Debt Margin - December 31, 1996........ Table 8 Computation of Overlapping. Debt - December 31, 1996 ......... Table 9 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures — Last Ten Fiscal Years .. ............................... Table 10 Revenue Bond Coverage — Last Ten Fiscal Years ................. Table 11 Property and Construction Values — Last Ten Fiscal Years ........................................... ............................... Table 12 Principal Taxpayers - December 31, 1996 .............................. Table 13 Major Employers in the City ...................... ............................... Table 14 Labor Force Data ...................................... ............................... Table 15 Miscellaneous Statistics - December 31, 1996 ....................... Table 16 ............................133 ....134 ....135 ....136 ............137 ............138 . ............................139 ............................. 140 ............................. 141 ............................. 142 ............................. 143 CITY OF EDINA, MINNESOTA Table of Contents, Continued Statistical Section (Continued): Sources and Uses of Public Funds for Southeast Edina Economic Development District -No. 1204, a Tax Increment Financing District............................................. ............................... Table 21 ... Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District .......................... Table 22... . ............................149 ...........................150 Table Page Sources and Uses of Public Funds for 50th & France -No. 1200, a Tax Increment FinancingDistrict ................................ ............................... Table 17 .... ............................145 Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1201, a Tax Increment Financing District................... Table 18 .... ............................146 Sources and Uses of Public Funds for Grandview Area Redevelopment District - No. 1202, a Tax Increment Financing District ................... Table 19 .... ............................147 Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1203, a Tax Increment Financing District ................... Table 20 .... ............................148 Sources and Uses of Public Funds for Southeast Edina Economic Development District -No. 1204, a Tax Increment Financing District............................................. ............................... Table 21 ... Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District .......................... Table 22... . ............................149 ...........................150 INTRODUCTORY SECTION CITY OF EDINA, MINNESOTA Elected and Appointed Officials December 31, 1996 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 Page 2 �OflrOAP�t City of Edina April 4, 1997 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 31,1996 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 I The City of Edina, Minnesota concluded fiscal year 1996 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 ��jNaI Page 4 o� e ' �1 NUJ a0 o• • ,��ONPoMtE City of Edina April 4, 1997 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 31,1996, 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 $27,198,900 in 1996, a decrease of 3.7 percent over 1995. General property taxes. produced 59.2 percent of general revenues compared to 55.0 percent last year. The amount of revenues s from various sources and the increase (decrease) over last year are shown in the following table: Revenue Source Taxes Special assessments Franchise fee Licenses and permits Intergovernmental Charges for services Fines and'forfeitures Interest on investments Interest on funds held with fiscal agent Sale and rental of property Other revenues Total revenues Total $16,089,705 969,468 224,489 1,382,427 3,928,352 1,621,635 456,589 950,129 1,175, 977 108,111 292,018 $27,198,900 1.07% (299,300) 100.00% $(1,039,193) Current tax collections were 98.7 percent of the tax levy, up .4 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 96.6 percent, an decrease of 1.1 percent from last year. Increase Percent (decrease) of total from 1994 59.16% $ 554,803 3.56% 110,571 0.83 % 14,970 5.08% 312,075 14.44% (1,765,450) 5.96% 111,165 1.68% (89,407) 3.49% 538,784 4.32% (566,644) 0.40% 39,240 1.07% (299,300) 100.00% $(1,039,193) Current tax collections were 98.7 percent of the tax levy, up .4 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 96.6 percent, an decrease of 1.1 percent from last year. Page 6 Intergovernmental revenues were 14.4 percent of general revenues compared to 20.1 percent in 1995. Expenditures for general governmental purposes within the General, Special Revenue, Debt Service and Capital Project Funds totaled $28,203,692 a decrease of 1.8 percent over 1995. 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 $28,203,692 100.0% $(505,164) Expenditures for public safety were 26.4 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 1996: Gross bonded debt outstanding, January 1, 1996 Add bonds issued in fiscal year 1996 Deduct bonds redeemed in fiscal year 1996 Gross bonded debt outstanding, December 31, 1995 Deduct sinking fund assets, December 31, 1996 Net bonded debt, December 31, 1996 .8397 $1,436 $101,775,000 19,340,000 28,435,000 92,680,000 (25,429,215) $67,250,785 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 1995 $2,201,312 7.8% $131,785 7,440,601 26.4% 189,472 3,290,742 11.7% 129,911 1,919,759 6.8% 69,149 251,215 .9% (57,937) 5,847,706 20.7% 458,501 970,882 3.4% 166,295 1,400,000 5.0% (1,095,000) 4,881,475 17.3% (497,340) $28,203,692 100.0% $(505,164) Expenditures for public safety were 26.4 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 1996: Gross bonded debt outstanding, January 1, 1996 Add bonds issued in fiscal year 1996 Deduct bonds redeemed in fiscal year 1996 Gross bonded debt outstanding, December 31, 1995 Deduct sinking fund assets, December 31, 1996 Net bonded debt, December 31, 1996 .8397 $1,436 $101,775,000 19,340,000 28,435,000 92,680,000 (25,429,215) $67,250,785 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 31,1996 the City had $69,815,000 of Tax Increment Bonds outstanding, excluding General Obligation, Improvement and Revenue Bonds. $21,083,343 was available in the General Debt Service Fund for payment of these obligations, resulting in $48,731,657 net general debt at December 31,1996. 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 1996 the City earned $933,314 in interest income. The following is a list of the City's cash and investments by classification as of December 31, 1996: . Cash Cash deficit Cash with plan administrator Cash with fiscal agents Certificates of deposit Commercial paper Government securities Money market investments Capital Project Funds $8,575,451 (7,968,697) 8,217,281 24,923,923 537,756 12,657,,531 17,903,664 1,200,415 $66,047,324 The major construction projects and equipment purchases are accounted for in four 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. The Park Improvements Fund is for park improvements funded through property taxes. 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, 1996 the general fixed assets of the City amounted to $68,409,756 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 1996 and 1995 is as follows: Utilities Liquor Swimming pool Golf course Arena Gun Range Art Center Edinborough Park/Centennial Lake Income (loss) 1996 1995 $693,705 $746,861 594,848 580,323 47,124 35,002 83,880 (217,150) (139,954) (95,418) (13,741) (12,962) (79,953) (82,822) (329,069) (305,918) $856,840 $647,916 Transfers from /to other funds for various purposes were $500,000 and $100,000 in 1996 and $237,583 and $250,583 in 1995, 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 1996. 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 su mitted, John Wallin, CPA Treasurer and Finance Director P At;6� Pegg bs Accountant FINANCIAL SECTION kAk Peat Marwick LLP 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 31,1996. 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 31,1996, 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. In accordance with Govemment Auditing Standards, we have also issued a report dated April 4, 1997 on our consideration of the City of Edina, Minnesota's internal control structure and a report dated April 4, 1997 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 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. []nF]II Member Rrmot KPMG International ►EPR9� Peat Marwick LLP Page 10 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. �'1dO44�4 1,44P April 4, 1997 CITY OF EDINA, MINNESOTA Page 11 Combined Balance Sheet - All Fund Types and Account Groups December 31, 1996 (with comparative totals for December 31, 1995) Assets and Other Debits Cash (note 2) Petty cash and change funds (note 2) Investments (note 2) Cash and investments with plan administrators (notes 2 and 7) Cash and investments with fiscal agents Receivables: Accounts Customers Interest Special assessments Developer loan Due from other funds (note 9) Due from other governments Inventory Prepaid Expenses Advance to other funds (note 10) Fixed Assets (note 4) Discount on bonds Amount available in debt service fund Amount to be provided for refinement of long -tens debt Total assets and other debits 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 Compensated absences payable Deposits payable Due to participants (note 7) Taxes payable Deferred revenue Advance from other funds (note 10) Reserve for construction Obligation under capital lease (note 15) Bonds payable (note 5) Total liabilities Fund equity and other credits: Investment in general fixed assets (note 4) Contributed Capital Retained earnings: Reserved (note 11) Unreserved - undesignated Fund balance: Reserved (note 11) Unreserved - designated (note 11) Unreserved - undesignated Total fund equity and other credits Contingencies (note 14) Total liabilities, fund equity and other credits See accompanying notes to financial statements Governmental fund types Special Debt Capital General Revenue Service Projects $ 350,897 0 0 150,185 1,690 0 0 0 6,710,643 830,195 0 24,794,529 0 20,883,343 229,297 59,726 47,742 160,194 0 0 0 0 1,411 9,501 0 272,730 0 0 2,776,138 100,759 0 0 0 1,616,446 5,270,759 0 200,000 907,733 259,140 133,337 12,690 182 0 0 0 0 26,931 0 0 0 0 0 647,981 272,550 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ _ 12.850.768 1.032.759 24.567.894 28.275.308 654,684 40,082 0 324,288 203,032 1,123 0 1,158 0 0 0 107,152 0 0 0 0 1,189,276 208,187 0 4,579,277 90,290 78 168,632 650 12,774 1,296 0 0 0 0 0 219,838 0 0 0 0 0 0 0 0 0 0 2,631,338 100,759 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,150,056 250,766 2,799,970 5,333,122 1,491,189 0 21,767,924 1,826,344 7,310,166 0 0 0 1,899,357 781,993 0 21,115,842 10,700,712 781,993 21,767,924 22,942,186 $ 12,850,768 1,032,759 24,567,894 28,275,308 Page 12 Proprietary Fiduciary fund type fund type Account groups General General Fixed. Long -term Enterprise Agency Asset Debt 0 95,317 0 0 8,665 0 0 0 0 0 0 0 Totals memorandum only) 1996 1995 596,399 6,529 10,355 10,880 32,335,367 25,919,397 0 8,217,281 0 0 8,217,281 7,578,164 4,040,581 0 0 0 24,923,924 41,670,826 109,626 0 0 0 606,585 707,157 2,089,453 0 0 0 2,089,453 2,111,802 69,673 0 0 0 353,315 219,266 20,627 0 0 0 2,897,524 3,053,152 0 0 0 0 1,616,446 1,460,612 81,541 0 0 0 6,460,033 8,302,237 3,757 0 0 0 409,106 294,836 797,606 0 0 0 797,606 623,764 0 0 0 0 26,931 326,582 1,790,884 0 0 0 2,711,415 2,781,210 33,833,148 0 68,409,756 0 102,242,904 98,755,340 80,787 0 0 0 80,787 95,742 0 0 0 21,767,924 21,767,924 37,641,962 0 0 0 58,194,348 58,194,348 49,573,961 42.926.348 8.312.598 68.409.756 79.962.272 266.337.703 281.133.419 456,082 0 0 0 1,475,136 752,649 57,162 0 0 0 262,475 214,178 9,788 0 0 0 116,940 54,968 407,858 0 0 0 407,858 453,275 469,815 13,478 0 0 6,460,033 8,302,237 113,289 81,839 0 0 454,778 1,995,689 123,536 0 0 507,272 644,878 599,289 10,151 0 0 0 229,989 107,384 0 8,217,281 0 0 8,217,281 7,578,164 0 0 0 0 0 51,320 29,441 0 0 0 2,761,538 2,910,057 2,711,415 0 0 0 2,711,415 2,781,210 0 0 0 0 0 750 405,000 0 0 650,000 1,055,000 450,000 13,875,000 0 0 78,805,000 92,680,000 101,775,000 18,668,537 8,312,598 0 79,962,272 117,477,321 128,026,170 0 0 68,409,756 0 68,409,756 65,472,118 628,981 0 0 0 628,981 699,706 1,607,870 0 0 0 1,607,870 1,607,120 22,020,960 0 0 0 22,020,960 21,494,145 0 0 0 0 25,085,457 39,411,915 0 0 0 0 7,310,166 6,993,805 0 0 0 0 23,797,192 17,428,440 24,257,811 0 68,409,756 0 148,860,382 153,107,249 42,926,348 8,312,598 68,409,756 79,962,272 266,337,703 281,133,419 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenditures and Changes in Fund Balance - AII Governmental Fund Types Year ended December 31, 1996 (with comparative totals for year ended December 31, 1995) 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 Unallocated general Other Capital outlay: General government Public safety Public works Parks Infrastructure Other Debt Service: Bond principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Nonoperating revenues: Donations Total nonoperating revenues Income (loss) before other financing sources Other financing sources (uses): Operating transfers in (out) Operating transfers in (out) - General Fund Operating transfers in (out) - Liquor Fund Operating transfers in (out) - Capital Projects Fund Operating transfers in (out) -HRA Operating transfers in (out) - General Debt Service Fund Parkland dedication Transfer dedicated funds Capital Lease Proceeds from sale of bonds Proceeds of refunding bonds Payment to refunded bond escrow agent Payment from escrow agent to refund bonds Reserve for construction Total other financing sources (uses) 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 Page 13 Governmental fund types Special Debt Capital General Revenue Service Projects $ 11,747,743 0 0 4,341,962 0 0 806,292 163,176 0 224,489 0 0 1,382,427 0 0 0 1,513,350 210,590 0 2,204,412 1,621,635 0 0 0 456,589 0 0 0 16,815 36,480 0 896,834 0 0 1,175,976 0 103,367 0 0 4,744 10,402 0 0 281,616 16,852,328 471,559 1,982,268 7,892,744 2,201,312 0 0 0 7,440,601 0 0 0 3,290,742 0 0 0 1,919,759 0 0 0 251,215 0 0 0 263,007 505,050 3,083 1,019,183 21,433 0 0 0 326,379 0 0 0 509,513 0 0 0 113,557 0 0 0 0 0 0 4,055,972 0 1,411 0 0 0 0 1,400,000 0 0 0 4,881,475 0 16,337,518 506,461 6,284,558 5,075,155 514,810 (34,902) (4,302,290) 2,817,589 0 0 0 19,654 0 0 0 19,654 514,810 (34,902) (4,302,290) 2,837,243 0 0 0 50,159 400,000 0 0 0 (50,159) 0 0 0 0 0 4,243,252 0 0 0 0 (4,243,252) 65,561 0 0 0 0 0 0 0 0 0 0 650,000 0 0 0 8,042,433 0 0 10,050,000 0 0 0 (10,050,000) 0 0 0 (15,815,000) 0 800 0 0 0 416,202 0 (11,571,748) 4,499,340 931,012 (34,902) (15,874,038) 7,336,583 9,769,700 816,895 37,641,962 15,605,603 $ 10,700,712 781,993 21,767,924 22,942,186 Page 14 Totals (memorandum only) 1996 1995 16, 089, 705 15, 534, 902 969,468 858,897 224,489 209,519 1,382,427 1,070,352 3,928,352 5,693,802 1,621,635 1,510,470 456,589 545,996 950,129 411,345 1,175,976 1,742,621 108,111 68,871 292,018 591,318 27,198,899 28,238,093 2,201,312 2,069,527 7,440,601 7,251,129 3,290,742 3,160,831 1,919,759 1,850,610 251,215 309,152 1,790,323 1,028,684 21,433 21,169 326,379 294,355 509,513 395,767 113,557 93,296 4,055,972 4,352,521 1,411 8,000 1,400,000 2,495,000 4,881,475 5,378,815 28,203,692 28,708,856 (1,004,793) (470,763) (4,243,252) (4,309,614) 19,654 0 19,654 39,308 (985,139) (431,455) 50,159 50,159 400,000 383,000 (50,159) (50,159) 4,243,252 4,309,614 (4,243,252) (4,309,614) 65,561 193,766 0 (370,000) 650,000 0 8,042,433 0 10,050,000 0 (10,050,000) 0 (15,815,000) 0 800 2,400 (6,656,206) 209,166 (7,641,344) (261,597) 63,834,160 64,095,757 56,192,816 63,834,160 Page 15 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, 1996 (with comparative totals for year ended December 31, 1995) Other financing sources (uses): Operating transfers in Operating transfers out Transfer dedicated funds Parkland dedication Reserve for construction Total other financing sources (uses) 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 400,000 400,000 General (50,159) 0 0 0 Variance 0 800 349,841 favorable Budget Actual (unfavorable) Revenues: Taxes (note 3) $ 12;188,440 11,747,743 (440,697) Licenses and permits 975,000 1,382,427 407,427 Intergovemmental 1,424,100 1,513,350 89,250 Charges for services 1,371,250 1,621,635 250,385 Fines and forfeitures 375,000 456,589 81,589 Interest on investments 15,000 16,815 1;815 Sales!and rental of property 50,000 103,367 53;367 Other revenues 30,500 10,402 (20,098) Total revenues 16,429,290 16,852,328 423,038 Expenditures: Current: General government 2,263,264 2,201,312 61,952 Public safety 7,512,268 7,440,601 71,667 Public works 3,455,687 3,290,742 164,945 Parks 1,961,891 1,919,759 42,132 Unallocated general 281,440 251,215 30,225 Other 0 263,007 (263,007) Capital outlay: General government 22,277 21,433 844 Public safety 410,901 326,379 84,522 Public works 455,300 509,513 (54,213) Parks 91,105 113,557 (22,452) Total expenditures 16,454,133 16,337,518 116,615 Excess (deficiency) of revenues over expenditures (24,843) 514,810 539,653 Other financing sources (uses): Operating transfers in Operating transfers out Transfer dedicated funds Parkland dedication Reserve for construction Total other financing sources (uses) 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 400,000 400,000 (50,159) (50,159) 0 0 0 65,561 0 800 349,841 416,202 $ 324,998 931,012 9,769,700 10,700,712 0 0 0 65,561 800 66,361 606,014 Page 16 Totals (memorandum only) Special Revenue 1996 1995 Variance Variance favorable favorable Budget Actual (unfavorable) Budget Actual (unfavorable) Actual 0 0 0 12,188,440 11,747,743 (440,697) . 11,152,197 0 0 0 975,000 1,382,427 407,427 1,070,352 189,665 210,590 20,925 1,613,765 1,723,940 110,175 1,709,758 0 0 0 1,371,250 1,621,635 250,385 1,510,470 0 0 0 375,000 456,589 81,589 545,996 0 0 0 15,000 16,815 1,815 14,948 0 0 0 50,000 103,367 53,367 64,815 0 0 0 30,500 10,402 (20,098) 47,217 189,665 210,590 20,925 16,618,955 17,062,918 443,963 16,115,753 0 0 0 2,263,264 2,201,312 61,952 2,069,527 0 0 0 7,512,268 7,440,601 71,667 7,251,129 0 0 0 3,455,687 3,290,742 164,945 3,160,831 0 0 0 1,961,891 1,919,759 42,132 1,850,610 0 0 0 281,440 251,215 30,225 309,152 189,665 210,590 (20,925) 189,665 473,597 (283,932) (131,459) 0 0 0 22,277 21,433 844 21,169 0 0 0 410,901 326,379 84,522 294,355 0 0 0 455,300 509,513 (54,213) 395,767 0 0 0 91,105 113,557 (22,452) 93,296 189,665 210,590 (20,925) 16,643,798 16,548,108 95,690 15,314,377 0 0 0 (24,843) 514,810 539,653 801,376 0 0 0 400,000 400,000 0 383,000 0 0 0 (50,159) (50,159) 0 (50,159) 0 0 0 0 0 0 193,766 0 0 0 0 65,561 65,561 (370,000) 0 0 0 0 800 800 2,400 0 0 0 349,841 416,202 66,361 159,007 0 0 0 324,998 931,012 606,014 960,383 0 9,769,700 9,812,358 0 10,700,712 10,772,741 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types Year ended December 31, 1996 (with comparative totals for year ended December 31, 1995) 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 Miscellaneous expense Interest earned from fiscal agent Interest and fiscal charges Interest on capital lease Gain on sale of fixed assets Amortization of bond discount Total nonoperating revenues (expenses) Income before operating transfers Operating transfers in (out): General fund Revolving fund Art center fund Liquor store fund Arena fund Gun range fund Golf dome Total operating transfers, net Net income Add depreciation on contributed assets Increase in retained earnings Retained earnings - January 1 Retained earnings - December 31 See accompanying notes to financial statements Page 17 Totals 1996 1995 $ 6,3991235 4,813,865 1,585,370 12,608,639 14,194,009 3,423,248 3,715,083 2,403,736 936,244 1,031,551 1,662,373 13,172,235 1 ,021,774 424,425 14,479 7,575 219,459 (826,818) (21,629) 32,531 (14,956) (164,934) 6,004,554 4,528,788 1,475,766 11,939,010 13,414,776 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 4,344 221,982 (917,427) (23,265) 0 (14,955) (266,700) 856,840 647,916 (400,000) (33,000) 0 20,000 (95,000) (120,413) 100,000 100,000 0 (97,170) (5,000) 0 0 117,583 (400,000) (13,000) 456,840 634,916 70,725 72,867 527,565 707,783 23,101,265 22,393,482 $ 23,628, 830 23,101, 265 Cash flows from investing activities Change in investments 0 Page 18 CITY OF EDINA, MINNESOTA (747) 34,998 Combined Statement of Cash Flows - All Proprietary Fund Types 424,425 439,582 Year ended December 31, 1996 423,678 528,413 (with comparative totals for year ended December 31, 1995) (579,125) (87,351) Cash and cash equivalents, beginning of year Totals 4,715,722 1996 1995 Cash flows from operating activities: Operating income $ 1,021,774 914,616 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 1,662,373 1,536,055 Changes in assets and liabilities: (Increase) decrease in accounts receivable 133,898 (160,777) (Increase) decrease in customers receivable 22,349 (496,848) (Increase) decrease in special assessments (18,868) 15,295 Decrease in due from other governments 3,692 91,610 Increase in inventory (173,842) (44,446) Increase decrease in prepaid expenses 288,506 (288,506) Increase in accounts payable 77,100 82,096 Increase in salaries payable 13,522 13,903 Increase in contracts payable 9,788 0 Increase (decrease) in accrued interest payable (45,417) 177,019 Decrease in due to other governments (12,915) (105,651) Increase in compensated absences payable 14,467 6,684 Increase (decrease) in deposits payable (6,125) 1,259 Increase in deferred revenue 13,910 2,931 Increase in due from other funds (8,678) (72,863) Increase (decrease) in due to other funds 171,602 (20,850) Total adjustments 2,145,362 736,911 Net cash provided by operating activities 3,167,136 1,651,527 Cash flows from noncapital financing activities: Donations' 14,479 23,039 Miscellaneous expense 7,575 3,948 (Increase) decrease in advance to other funds 302,309 61,306 Increase in advance from other funds (69,795) (258,769) (Decrease) in reserve for construction (750) 0 Operating transfers out- General Fund (400,000) (33,000) Operating transfers in- Revolving Fund 0 20,000 Operating transfers (out) -Art center (95,000) (120,413) Operating transfers in- Liquor Stone 100,000 100,000 Operating transfers (out) -Arena 0 (97,170) Operating transfers (out) -Gun Range (5,000) 0 Operating transfers in -Golf dome 0 117,583 Net cash used for noncapital financing activities (146,182) (183,476) Cash flows from capital financing activities Payment to other funds 0 (10,000) Net acquisition of capital assets (2,212,299) (970,501) Gain on sale of fixed assets 32,531 396 Principal paid on revenue bonds (1,170,000) (345,000) Principal paid on capital lease (45,000) (40,000) Interest earned from fiscal agent 219,459 221,982 Interest paid on capital lease (238,346) (23,265) Interest paid on bonds (610,102) (917,427) Net cash used for capital financing activities (4,023,757) (2,083,815) Cash flows from investing activities Change in investments 0 53,833 (Increase) decrease in interest receivable (747) 34,998 Interest on investments 424,425 439,582 Net cash provided by investing activities 423,678 528,413 Net (decrease) in cash and cash equivalents (579,125) (87,351) Cash and cash equivalents, beginning of year 4,628,371 4,715,722 Cash and cash equivalents, end of year $ _4,049,246 4,628,371 See accompanying notes to financial statements Page 19 CITY OF EDINA, MINNESOTA Notes to Financial Statements December 31,1996 (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 (c) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The primary government is financially accountable for the component unit if it appoints a voting majority of the component unit's governing body and is able to impose its will on the component unit or there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the primary government. As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the 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 government 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 afford_ able 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= balacing - 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 (Continued) Page 21 CITY OF EDINA, MINNESOTA revenues earned, expenses incurred, and /or net income is 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 trust1unds. 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. (Continued) Page 23 CITY OF EDINA, MINNESOTA 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. 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. I i. 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 Govemmenta[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 council has elected not to prepare a budget for the Communications 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 by department 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. City management may transfer amounts within a department. The City Council may authorize transfers of budgeted amounts between departments. 7. Reported budget amounts are as originally adopted or as amended by (Continued) F. .Lo M J Page 24 CITY OF EDINA, MINNESOTA Council- approved supplemental appropriations and budget transfers. 8. Expenditures may not legally unless offset by increases appropriations lapse at year end. Encumbrances exceed appropriations by department in revenues. All unencumbered 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. 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, Park Improvements, and Revolving Funds which are part of the Capital Projects Fund. Cash Cash balances from all funds are pooled together and invested to the maximum extent favorable rates. This also allows certain funds to generate a temporary cash overdraft. Interest earned is allocated as determined by the Investment Advisory Committee. Investments 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. 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. Advances Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. (Continued) CITY OF EDINA, MINNESOTA K. Inventory Page 25 Inventory is stated at the lower of cost (determined on a first in, first out basis) or market value. L. 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, 1996 reported in the Governmental Funds, Proprietary Funds and General Long -term Debt Account Group was $14,070, $123,536 and $507,272, respectively. M. 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. N. 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. O. Reclassifications Certain 1995 amounts were reclassified to conform to the 1996 presentation. P. 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 pronouncements, as well as the following pronouncements issued on or before (Continued) Page 26 CITY OF EDINA, MINNESOTA 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, 1996 the City was not in compliance with Minnesota Statutes regarding pledged collateral. A security in the amount of $1,000,000, pledged for collateral, was not an allowable type as defined by state statute. 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. (Continued) Page 27 CITY OF EDINA, MINNESOTA The City's cash and 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. The cash and investment balances at December 31, 1996 were as follows: Cash Change funds Certificates of deposit Commercial paper Money Market investments 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 SBA Pool Bank Balance Category Category 1 2 $ 300,000 $ 833,391 $ 0 0 573,757 0 0 12,657,531 0 1,200,415 0 4,605,835 0 4,361,009 0 55,708 0 2,275,701 0 4,395,757 0 1,702,125 0 507,529 $ 837,757 $ 32,595,001 Market Value 1,133,391 10,355 599,574 12,732,386 1,200,415 4,540,838 4,371,269 67,061 2,231,502 4,394,245 1,702,221 545,597 $ 33,528,854 Carrying Amount $ 596,399 10,355 573,757 12,657,531 1,200,415 4,605,835 4,361,009 55,708 2,275,701 4,395,757 1,702,125 507,529 $ 32,942,121 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 $1,371,042 (market value of approximately $1,332,640) 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. (Continued) CITY OF EDINA, MINNESOTA The City also has the following unclassified cash and investments: Cash and Investments: With plan administrators With fiscal agents (3) Property Taxes Carrying Bank Amount balance $ 8,217,281 8,217,281 24,923,923 24,923,923 $ 33,141,204 33,141,204 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 alien 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. (Continued) (4) Land CITY OF EDINA, MINNESOTA Fixed Assets A summary of changes in general fixed assets during 1996 is as follows: Land improvements Buildings Furniture & fixtures Vehicles Sidewalks Leasehold improvements Miscellaneous equipment Park & playground equipment Highway equipment Police equipment Fire'equipment Election equipment Engineering Equipment Traffic signals Tools Parks Construction in progress Total Page 29 Balance Balance January 1 Additions Deletions Reclassifications December 31 $ 17,263,863 0 0 0 17,263,863 10,505,439 1,504,936 0 0 12,010,375 19,599,311 . 81,651 0 0 19,680,962 725,847 120,954 (12,005) 23,335 858,131 1,640,089 479,566 (308,211) 1,474,935 3,286,379 280,893 30,102 0 0 310,995 190,330 0 0 0 190,330 465,191 27,987 (117;955) (2,993) 372,230 659,153 31,870 (3,262) 50,084 737,845 3,377,253 363,549 (393,448) (1,491,372) 1,855,982 704,572 20,914 0 0 725,486 1,306,043 28,630 (559) (53,989) 1,280,125 138,114 0 0 0 138,114 99,958 0 0 0 99,958 116,184 37,386 0 0 153,570, 5,812 0 0 0 5,812 7,325,443 30,478 0 0 7,355,921 1,068,623 1,015,055 0 0 2,083,678 $ 65,472,118 3,773,078 (835,440) 0 68,409,756 A summary of proprietary fund fixed assets at December 31,1996 is as follows: Net book value $33,833,148 (Continued) Enterprise fund Land $1,088,965 Golf course 4,587,716 Land improvements 593,743 Water distribution system 10,934,595 Sewer collection system 11,925,158 Major recreation facilities 8,005,030 Major water facilities 14,848,944 Buildings -- liquor stores 675,560 Furniture, fixtures. and equipment 3,498,455 Vehicles 404,256 Lease property - capital lease 468,580 Construction in progress 10,324 57,041,326 Less accumulated depreciation (23,208,178) Net book value $33,833,148 (Continued) CITY OF EDINA, MINNESOTA (5) Long -term Debt Bonded Debt Page 30 The City has four types of bonded debt outstanding at December 31,1996: tax increment bonds, general obligation 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 type is payable solely from general property taxes. The third and fourth 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: Changes in long -term debt during the year were as follows: Balance January 1, Balance 1996 Tax Increment Bonds $85,385,000 General Obligation Bonds December 31, Improvement Bonds Maturities Interest rates 1996 Tax Increment Bonds 2003-2009 4.25 -7.30% $69,815,000 General Obligation Bonds 1999-2017 4.25 - 5.75 8,090,000 Improvement Bonds 1997-2001 4.00 - 5.20 900,000 Revenue Bonds 1997-2013 3.80 - 7.30 13,875,000 Total $92,680,000 Changes in long -term debt during the year were as follows: Balance Issued/ Redeemed/ December 31, increases decreases 1996 11,250,000 28,820,000 69,815,000 8,090,000 0 8,090,000 0 445,000 900,000 0 1,170,000 13,875,000 $101,775,000 19,340,000 28,435,000 92,680,000 The City had the following revenue bonds outstanding at December 31, 1996: Recreation Facility Bonds, Series 1988 Recreation Facility Bonds, Series 1989 Recreation Facility Bonds, Series 1992A Recreation Refunding Bonds, Series 1992C Utility Refunding Bonds, Series 1992D $ 2,345,000 1,740,000 3,930,000 4,650,000 1,210,000 $ 13,875,000 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. (Continued) Balance January 1, 1996 Tax Increment Bonds $85,385,000 General Obligation Bonds 0 Improvement Bonds 1,345,000 Revenue Bonds 15,045,000 Balance Issued/ Redeemed/ December 31, increases decreases 1996 11,250,000 28,820,000 69,815,000 8,090,000 0 8,090,000 0 445,000 900,000 0 1,170,000 13,875,000 $101,775,000 19,340,000 28,435,000 92,680,000 The City had the following revenue bonds outstanding at December 31, 1996: Recreation Facility Bonds, Series 1988 Recreation Facility Bonds, Series 1989 Recreation Facility Bonds, Series 1992A Recreation Refunding Bonds, Series 1992C Utility Refunding Bonds, Series 1992D $ 2,345,000 1,740,000 3,930,000 4,650,000 1,210,000 $ 13,875,000 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. (Continued) Page 31 CITY OF EDINA, MINNESOTA 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 19928, to. replace the Tax Increment Bonds, Series 1988 and Series 1.989. The 1:988 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 deb_ t 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. During 1996, the City issued $11,250,000 in Taxable General Obligation Tax Increment Refunding Bonds, Series 1996A with an average interest rate of 6.255 percent to advance refund $4,925,000 of the 1988 Taxable Series bonds with an original net interest rate of 9.70 percent and $5,125,000 of the 1989 Taxable Series bonds with an original net interest rate of 10.273 percent. The net proceeds of $11,035,398 (after payment of $214,602 including the discount and issuance costs) were used to purchase U.S. Government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the 1988 and 1989 Taxable Series bonds. As a result, the 1988 and 1989 Taxable Series bonds are considered to be "in- substance" defeased and the liability for those bonds has been removed from the general long -term debt account group. The City advance refunded the 1988 and 1989 taxable bonds to reduce its total debt service payments over the next 13 years by $1,788,562.89, and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $1,526,103.67. The City issued $4,650,000 General Obligation Recreational Facility Refunding Bonds, Series 1992C to replace the Golf Course and Recreational Facility Bonds of 1985, 1988 and 1989. The 1985 issue was refunded in 1996 by means of a "crossover" refunding. The 1988 and 1989 issues will be refunded by means of "crossover" refunding in 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 Oblic�, ,-)n Tax Increment Refunding Bonds to replace the Tax Increment Bonds Series 19866, 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. (Continued) Page 32 CITY OF EDINA, MINNESOTA The annual requirements to amortize all debt outstanding as of December 31, 1996, including interest payments of $34,436,115 are as follows: Year ending Tax General December 31 Increment Obligation Improvement Revenue Total 1997 $ 9,015,869 429,000 224,425 1,501,508 11,170,802 1998 23,101,366 429,000 216,008 5,420,334 29,166,708 1999 5,148,055 688,369 202,250 1,312,163 7,350,837 2000 5,274,809 686,688 193,340 880,088 7,034,925 2001 -2017 50,726,515 11,620,231 174,420 9,871,677 72,392,843 $ 93,266,614 13,853,288 1,010,443 18,985,770 127,116,115 (Continued) Page 33 CITY OF EDINA, MINNESOTA 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, 1996, the legal debt margin was $73,343,083 calculated as follows: Market value Debt limit - 2% of market value Amount of general obligation $ 92,680,000 debt Less: Tax increment bonds $ 69,815,000 Improvement bonds 900,000 Revenue bonds 13,875,000 Total deductions 84,590,000 Total amount of debt applicable to debt limit Legal debt margin $ 4,071,654,134 81,433,083 8,090,000 73,343,083 (Continued) CITY OF EDINA, MINNESOTA Long -term Debt - Other Page 34 The City is the administering authority for the following tax increment finance districts. Tax capacity values are for taxes payable in 1996. 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 1,375,960 Captured tax capacity value: Retained by authority 1,086,252 Shared with other taxing districts 0 General obligation tax increment bonds issued 8,412,800 Total loans incurred 0 Amounts redeemed 29300,000 Outstanding bonds and loans at December 31, 1996 $ 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 $ 228,409 Current tax capacity value 2,362,410 Captured tax capacity value: Retained by authority 2,134,001 Shared with other taxing districts 0 General obligation tax increment bonds issued 36,546,600 Total loans incurred 0 Amounts redeemed 21,370,000 Outstanding bonds and loans at December 31, 1996 $ 15,176,600 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 Outstanding bonds and loans at December 31, 1996 $ 250,007 763,641 513,634 0 3,370,600 0 2,000,000 $ 1,370,600 (Continued) Page 35 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"bapacity value: Retained by authority 1,043,783 Shared with other taxing districts 0 General. obligation tax increment bonds issued 58,180,000 Total °loans incurred 0 Amounts redeemed 11,025,000 Outstanding bonds and loans at December 31, 1996 $ 47,155,000 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 $ 9,745,223 Current tax capacity value- 9,745,223 Captured tax capacity value: ,Retained by authority 0 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, 1996 $ 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 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 Outstanding bonds and loans at December 31, 1996 $ 349,416 349,416 0 0 0 94,692 88,329 $ 6,363 (Continued) Page 36 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 4.3% 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 4.6% 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, 1996, 1995, and 1994 were equal to the required contributions for each year, as follows: 1996 1995 1994 PERF $358,731 333,775 319,014 PEPFF $480,694 465,061 436,806 (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 1996 was 6.2% and was based on the first $62,700 paid. In 1996 the City also contributed 1.45% of (Continued) (7) Page 37 CITY OF EDINA, MINNESOTA the contribution rate based on the first $135,000 paid employee's wages for mandatory Medicare. The cost of Social Security and mandatory Medicare in 1996 and 1995 was $679,118 and $622,714 respectively. 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 $8,217,281 at December 31,1996 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 38 CITY OF EDINA, MINNESOTA (8) Segment Information for Enterprise Funds The: City maintains Enterprise Funds for utility (water and sewer) services, liquor facilities, golf course and arena. Individual funds are also maintained for other enterprise operations designated below as "Other Enterprise Funds" which are recreational in nature such as: swimming pool, gun range, art center and Edinborough Park. Segment information for the year ended December 31,1996 is as follows: Sales Operating Revenues Depreciation Operating income (loss) Nonoperating revenues (expenses), net Operating transfers. in (out) Net income (loss) Property additions Property deletions Net working capital Bonds payable Total assets Total retained earnings (deficit) (Continued) Other Total Golf Enterprise Enterprise utility Liquor Course Arena Funds Funds $ 0 6,399,235 0 0 0 6,399,235 7,747,160 0 2,962,410 746,504 1,152,565 12,608,639 721,187 46,401 563,841 137,048 193,896 1,662;373 741,407 595,460 450,649 15,825 (781,567) 1,021,774 (47,702) (612) (366,769) (155,779) 405,928 .(164,934) 0 (500,000) 0 0 100,000 (400,000) 693,705 94,848 83,880 (139,954) (275,639) 456,840 1,682,147 193,879 377,985 511 69,765 2,324,287 49,080 327,728 82,016 13,649 41,736 514,209 1,892,230 390,111 1,742,832 .1,718,894 (160,068) 5,583,999 1,210,000 0 8,363,275 3,658,975 642,750 13,875,000 25,581,454 1,621,843 10,254,555 3,600,050 1,868,446 42,926,348 24,109,576 1,293,720 471,155 (1,311,202) (934,419) 23,628,830 (Continued) (9) Page 39 CITY OF EDINA, MINNESOTA Due From To Other Funds Interfund receivables and payables as of December 31,1996 were as follows: (Continued) Interfund Interfund Fund Receivables Payables General (including amount due to Edina Housing and Redevelopment Authority of $907,733) $ 5,270,759 1,189,276 Special Revenue: Community Development Block Grant 0 121,520 Communications 0 86,667 Debt Service: General Debt Service 200,000 0 Improvement Bond Redemption II 0 0 Capital Project: Construction Fund 0 4,394,862 Housing and Redevelopment Authority of Edina 907,733 0 Revolving Fund 0 0 Park Improvement 0 184,415 Enterprise: Utilities 0 0 Liquor 0 0 Swimming Pool 0 0 Golf Course 0 200,000 Arena 0 50,000 Gun Range 0 13,831 Art Center 0 0 Edinborough Park/Centennial Lake 81,541 205,984 Agency: Police Seizure 0 13,478 $ 6,460,033 6,460,033 (Continued) Page 40 CITY OF EDINA, MINNESOTA (10) Advance From To Other Funds Interfund receivables and payables as of December 31, 1996 were as follows. Interfund Interfund Fund Receivables Payables Debt Service: $ Improvement Bond Redemption II 647,981 0 Capital Project: Revolving Fund 272,550 0 Enterprise: Utilities 1,489,364 0 Liquor 226,260 0 Swimming Pool 74,975 Golf Course 0 830,177 Arena 0 754,006 Art Center 285 0 Edinborough Park/Centennial Lake 0 1,127,232 $ 2,711,415 2,711,415 (11) Reserved or Designated Fund Equity The following fund equity balances as of December 31, 1996 have been reserved or designated for the reasons noted below: General Fund: Reserved for equipment replacement $1,115,424 Reserved for insurance claims 375,765 Unreserved — designated for dedicated funds 7,310,166 Debt Service Funds: Reserved for debt service 21,119,943 Reserved for advances to other funds 647,981 Capital Projects: Reserved for encumbrances 1,475,452 Reserved for special projects 78,342 Reserved for advances to other funds 272,550 Enterprise Funds: Reserved for construction 750 Reserved for debt service 1,607,120 Total fund equity reservations and designations $34,003,493 (Continued) CITY OF EDINA, MINNESOTA (12) Fund Deficits Page 41 The following funds had deficit fund balances or retained earnings at December 31,1996: Capital Project Funds: Construction Fund $(4,699,761) Enterprise Funds: Arena Fund (1,311,202) Edinborough Park /Centennial Lake Fund (1,148,693) 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. (13) Subsequent Events On February 5, 1997, the City issued a $5,000,000 general obligation temporary tax increment bond to finance certain public improvements as part of the Southeast Edina Redevelopment Project of the Housing and Redevelopment Authority of Edina, Minnesota (HRA). The interest rate is 4% and the maturity date is February 5, 2000. This bond is subject to redemption and prepayment at the option of the City. During 1997, the City intends to issue General Obligation Tax Increment Bonds, Series 1997B to redeem the temporary bond. (14) Contingencies The owners of the Southdale Shopping Center have filed property tax petitions challenging the valuation for the Center for tax years payable in 1994, 1995 and 1996. The petitions did not detail the claimed basis of over valuation. Since the tax payable years of 1991, 1992 and 1993 were resolved by tax court trial, it is anticipated that the owners may claim that the Center is over valued by 100% or more of it's true value. The City will vigorously defend the claim. The City Attorney has indicated that other existing and pending lawsuits, claims and other 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. (Continued) CITY OF EDINA, MINNESOTA (15) Capital Lease Page 42 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, 1996: Year ending December 31: 1997 $64,761 1998 67,811 1999 65,511 2000 63,111 2001 65,483 Later years 167,986 Total minimum lease payments 494,663 Less: Amount representing interest (89,663) Present value of net minimum lease payments $405;000 The City has recorded a capital lease in the General Long -term Account Debt Group for the purchase /construction of the Fire Station at 7335 York Avenue South. The terms of the lease agreement extend to the year 2006 and provide for an ownership transfer to the City at the termination of the lease. Year ending December 31: 1997 1998 1999 2000 2001 Later years Total minimum lease payments Less: Amount representing interest Present value of net minimum lease payments $83,761 83,761 83,761 83,761 83,761 418,800 837,605 (187,605) $650,000 (Continued) Page 43 CITY OF EDINA, MINNESOTA (16) Fund Equity -- Contributed Capital The following is a summary of the changes in contributed capital: Enterprise Edinborough Park Centennial Lake Contributed capital, January 1, 1996 $699,706 Add: Contribution of fixed assets 0 Less: Transfer of depreciation to contributed capital (70,725) Contributed capital, December 31, 1996 $628,981 (17) Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation, 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 $731,401 in 1996. 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 $5,000 deductible per occurrence, with an annual maximum of $52,053,445. 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. (Continued) Page 44 CITY OF EDINA, MINNESOTA 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 $375,765 in the general fund to finance potential uninsured loss. Settlement claims have not exceeded insurance coverage for either of the past two years. (18) Conduit Debt Obligations As of December 31, 1996, the City of Edina had outstanding 3 series of Housing Revenue Bonds, with an aggregate principal amount payable- of $31,440,000. The bonds are payable solely from revenues of the respective organizations and do not constitute an indebtedness of the City, and are not a charge against its general credit or taxing power. Accordingly, the bonds . are not reported as liabilities in the accompanying financial statements. (19) 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. (20) Excess of Expenditures Over Appropriations For the year ending December 31, 1996, expenditures exceeded appropriations in the following departments: All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. Budget Actual Variance General Government: Mayor & Council $63,822 65,215 (1,393) Administration 667,172 677,858 (10,686) Assessing 420,889 423,650 (2,761) Public Safety: Fire Protection 2,593,912 2,718,612 (124,700) All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. Page 45 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 46 CITY OF EDINA, MINNESOTA General Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets Cash Petty cash and change funds Investments Accounts Receivable Accrued interest receivable Taxes Receivable: Delinquent Allowance for uncollectible taxes Due from other funds Due from other governments Prepaid expenses Total assets Liabilities and Fund Balance Liabilities: Accounts payable Salaries payable Due to other funds Due to other governments Compensated absences payable Total liabilities Fund balance: Reserved Unreserved: Designated Undesignated Total fund balance 1996 $ 350,897 1,690 6,710,643 229,297 1,411 36198 (36,198) 5,270,759 259,140 26,931 $ 12,850,768 654,684 203,032 1,189,276 90,290 12,774 2,150,056 1,491,189 7,310,166 1,899,357 1995 (246,898) 1,640 7,351,808 361,590 1,688 88,399 (88,399) 5,185,830 201,631 38,076 12,895,365 338,514 169,335 2,461, 010 153,185 3,621 3,125,665 1,371,189 6,993,805 1,404,706 10,700,712 9,769,700 Total liabilities and fund balance 12,850,768 12,895,365 Page 47 CITY OF EDINA, MINNESOTA General Fund Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) 1996 1995 Variance Favorable Budget Actual (unfavorable) Actual Revenues: Taxes $ 12,188,440 11,747,743 (440,697) 11,152,197 Licenses and permits 975,006 1,382;427 407,427 1,070,352 Intergovernmental 1,424,100 1,513,350 89,250 1,527,991 Charges for service 1,371,250 1,621,635 250,385 1,510,470 Fines and forfeitures 375,060 456,589 81,589 545,996 Other revenues 95,500 130,584 35,084 126,980 Total revenues 16,429,290 16,852,328 423,038 15,933,986 Expenditures: Current: General government 2,263,264 2,201,312 (61,952) 2,069,527 Public safety 7,512,268 7,440,601 (71,667) 7,251,129 Public works 3,455,687 3,290,742 (164,945) 3,160,831 Parks 1,961,891 1,919,759 (42,132) 1,850,610 Unallocated general 281,440 251,215 (30,225) 309,152 Other 0 263,007 263,007 (131,459) Capital outlay: General government 22,277 21,433 (844) 21,169 Public safety 410,901 326,379 (84,522) 294,355 Public works 455,300 509,513 54,213 395,767 Parks 91,105 113,557 22,452 93,296 Total expenditures 16,454,133 16,337,518 (116,615) 15,314,377 Excess (deficiency) of revenues over expenditures (24,843) 514,810 539,653 619,609 Other financing sources (uses): Operating transfers in (out) Liquor fund 400,000 400,000 0 383,000 Capital Project funds (50,159) (50,159) 0 (50,159) Parkland dedication 6 65,561 65,561 193,766 Transfer dedicated funds 0 0 0 (370,000) Reserve for construction 0 800 800 2,400 Total other financing sources 349,841 416,202 66,361 159,007 Excess of revenues and other financing sources over expenditures and other financing uses $ 324,998 931,012 606,014 778,616 Fund balance - January 1 9,769,700 8,991,084 Fund Balance - December 31 $ 10,700,712 $ 9,769,700 CITY OF EDINA, MINNESOTA General Fund Schedule of Revenues - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) 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 Charges for service: Engineering Assessing searches Planning fees False alarms Police services Hazmat 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 service Fines and forfeitures Other Revenues: Interest on investments Sale and rental of property Donations Other Total other revenues Total revenues Page 48 1996 1995 Variance Favorable Budget Actual (unfavorable) Actual $ 12,178,440 11,763,898 (414,542) 11,131,600 10,000 (16,155) (26,155) 20,597 12',188,440 11,747,743 (440,697) 11,152,1.97 975,000 11382,427 407,427 1,070,352 12,000 8,000 (4,000) 7,622 904,000 917,820 13,820 11002,263 140,000 140,000 0 140,000 255,000 334,424 79,424 264,375 113,100 113,106 6 113,731 1,424,100 1,513,350 89,250 1,527,991 120,000 187,577 67,577 132,268 1,000 780 (220) 654 12,000 19,210 7,210 13,653 49,000 55,808 6,808 48,717 75,000 78,307 3,307 94,500 1,000 1,048 48 445 180,000 180,000 0 180,000 141,750 141,756 6 135,000 650,000 821,600 171,600 780,387 93,000 91,816 (1,184) 81,158 18,500 10,010 (8,490) 11,352 10,000 10,000 0 101000 20,000 23,723 3,723 22,336 1,371,250 1,621,635 250,385 1,510,470 375,000 456,589 81,589 545,696 15,000 16,815 1,815 14,948 50,000 103,367 53,367 64,815 500 0 (500) 1 1,278 30,000 10,402 (19,598) 45,939 95,500 130,584 35,084 126,980 $ 16,429,290 16,852,328 423,038 15,933,986 CITY OFEDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) 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 1996 Variance Favorable Budget Actual (unfavorable) $ 27,450 26,736 714 2,900 3,175 (275) 1,300 3,132 (1,832) 32,172 32,172 0 63,822 65,215 (1,393) Commodities 6,500 440,050 446571 (6,521) 85,700 92,133 (6,433) 950 1,293 (343) 131,820 131,820 0 8,652 6,041 2,611 667,172 677,858 (10,686) 185,973 4,855 800 57,288 3,001 251,917 264,111 58,800 550 71,616 5,624 400,701 180,873 4,483 315 57,288 0 242,959 263,548 47,874 962 71,616 12,493 396,493 5,100 372 485 0 3,001 8.958 563 10,926 (412) 0 (6,869) 4.208 Page 49 1995 Actual 27,448 3;394 742 31,308 62.892 424,794 90,068 799 128,304 12;125 656.090 170,678 3;874 171 56,184 0 230.907 249,870 58,309 813 69,636 8,401 387.029 Election: Personal services 93,700 65,313 28,387 10,904 Contractual services 11,800 12,961 (1,161) 2,962 Commodities 6,500 7,543 (1,043) 0 Central services 11,040 11,040 0 9,840 Total election 123,040 96,857 26,183 23,706 (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) Assessing Personal services Contractual services Commodities Central services Capital outlay Total ,assessing Legal and court services: Contractual services Total general government Public Safety: Police protection: Personal services Contractual services Commodities Central services Capital outlay Total police protection Fire protection: Personal services Contractual services Commodities Central services Capital outlay Total fire protection Civil defense: Personal services Contractual services Commodities Capital outlay Total civil defense Page 50 (Continued) 1996 1995 Variance Favorable Budget Actual (unfavorable) Actual $ 290,798 292,291 (1,493) 279,315 38,465 41,834 (3,369) 35,364 1,150 1,150 0 1,153 85,476 85,476 0 83,112 5,000 2,899 2,101 643 420,889 423,650 (2,761) 3.99,587 358,000 319,713 38,287 330,485 2,285,541 2,222,745 62,796 2,090,696 3,010,663 2,892,071 118,592 2,776,819 176,831 171;644 5,187 159,008 41,184 43,484 (2,300) 38,966 1,030,392 1,030,392 0 1,001,636 236,605 179,863 56,742 187,085 4,495,675 4,317,454 178,221 4,163,514 1,803,669 1,872,849 (69,180) 1,840,064 89,027 88,128 899 90,428 46,200 70,168 (23,968) 58,667 508,080 508,080 0 494,832 146,936 145,495 1,441 54,469 2,593,912 2,684,720 (90,808) 2,538,460 19,373 20,312 (939) 18,823 7,507 8,830 (1,323) 5,681 1,123 157 966 215 6,680 0 6,680 11,033 1A AQQ 130,300 XZ 1RA 49Z 7r'7 (Continued) 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 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) 1996 Variance Favorable Budget Actual (unfavorable) $ 34,701 19,216 6,593 71616 3,214 1,556 12,912 12,912 5,831 0 63,251 41,300 149,327. 143,762 150,967 150,105 3,811 5,770 58,956 58,956 4,717 0 367,778 358,593 264,539 242,338 7,725 8,106 4,378 3,053 81,096 81,096 10,132 1,021 367,870 335,614 7,923,169 101,932 4,250 31,200 137.382 329,694 23,200 14,180 107,544 50,470 525,088 7,766,980 104,515 4,343 31,200 140,058 267,575 33,007 7,824 107,544 58,479 474,429 15,485 (1,023) 1,658 0 5,831 21,951 5,565 862 (1,959) 0 4,717 9.185 22,201 (381) 1,325 0 9,111 32,256 156.189 (2,583) (93) 0 (2,676) 62,119 (9,807) 6,356 0 (8,009) 50.659 Page 51 1995 Actual 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 (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) Supervision and overhead: Personal services Contractual services Commodities Central services Total supervision and 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 1996 Variance Favorable Budget Actual (unfavorable) $ 113,150 92,103 28,300 23,551 1,000 510 382,452 382,452 524,902 498,616 686,645 685,695 74,500 56,271 385,500 372,051 458,832 458;832 1,605,477 1,572,849 27,000 16,252 374,500 332,988 14,500 6,264 416,000 355,504 34,000 29,467 500 0 28,500 29,609 63,000 59,076 23,000 42,408 61,000 62,146 17,000 18,200 101,000 122,754 11,000 8,900 500 0 5,000 3,556 16,500 12,456 21,047 4,749 490 0 26.286 950 18,229 13,449 0 32.628 10,748 41,512 8,236 60A96 4,533 500 (1,109) 3.924 (19,408) (1,146) (1,200) (21,754) 2,100 500 1,444 4,044 Page 52 1995 Actual 87,562 20,866 87 372,504 481,019 625,320 73,802 -325,947 450,720 1.475789 16,244 380,644 5,797 402.685 32,687 0 33,801 66.488 25,304 49,130 19,404 93.838 7,868 0 908 8.776 (Continued) Page 53 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures 1: Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) Recreation: Athletic activities 9,114 1996 (2,548) 1995 Skating and hockey 36,475 42,983 Variance 43,564 Tennis instruction 11,290 8,943 Favorable 11,271 Playground Budget Actual (unfavorable) Actual Retaining walls: 19,255 18,681 574 19,752 Personal services $ 7,000 360 6,640 319 Contractual services 1,000 3,220 (2,220) 463 Commodities 9,000 3,989 5,011 3,872 Total retaining walls 17,000 7,569 9,431 4,654 Sidewalks and ramps: Personal services 24,608 43,900 (19,292) 24,350 Contractual services 46,500 43,765 2,735 38,274 Commodities 28,700 18,245 10,455 10,353 Total sidewalks and ramps 99,808 105,910 (6,102) 72,977 Other expenditures: Capital outlay 404;830 451,034 (46,204) 351,793 Total public works 3,910,987 3,800,255 110,732 3,556,598 Parks: Administration: Personal services 343,984 312,276 31,708 301,11.9 Contractual services 19,375 20,090 (715) 18,754 Commodities 17,427 6,102 11,325 18,681 Central services 103,500 103,500 0 100,680 Capital outlay 2,854 12,086 (9,232) 286 Total administration 487,140 454,054 33,086 439,520 Recreation: Athletic activities 9,114 11,662 (2,548) 6,731 Skating and hockey 36,475 42,983 (6,508) 43,564 Tennis instruction 11,290 8,943 2,347 11,271 Playground 25,944 24,275 1,669 30,423 Senior citizens 19,255 18,681 574 19,752 Miscellaneous and special activities 30,064 21,137 8,927 24,368 Total recreation 132,142 127,681 4,461 136,109 (Continued) Page 54 CITY OF EDINA, I MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for yearended December 31, 1995) Litter removal: Personal services 11,800 1996 (5,486) 1995 Contractual services 6,180 3,549 Variance 4,512 Commodities 7,210 4,491 Favorable 3,705 Total litter removal Budget Actual (unfavorable) Actual Maintenance: Supervision and overhead: 98,400 108,732 (10,332) 125,310 Personal services $ 93,822 77,264 16,558 72,557 Contractual services 6,433 3,675 2,758 1,305 Commodities 0 157 (157) 368 Central services 372,504 372,504 0 368,571 Total supervision and overhead 472,759 453,600 19,159 442,801 Mowing: Personal services 86,000 61;315 24,685 79,598 Contractual services 0 308 (308) 100 Commodities 1,156 2,305 (1,149) 3,141 Total mowing 87,156 63,928 23,228 82,839 Special turf care: Personal services 143,100 177,228 (34,128) 157,533 Contractual services 16,711 2,071 14,640 2,475 Commodities 32,567 27,148 5,419 26,668 Total special turf care 192,378 206,447 (14,069) 186,676 Forestry: Personal services 79,500 103,479 (23,979) 84,252 Contractual services 38,589 15,616 22,973 15,764 Commodities 17,861 11,572 6,289 7,710 Total planting and trees 135,950 130,667 5,283 107,726 Litter removal: Personal services 11,800 17,286 (5,486) 12,26.3 Contractual services 6,180 3,549 2,631 4,512 Commodities 7,210 4,491 2,719 3,705 Total litter removal 25,190 25,326 (136) 20,480 Building maintenance: Personal services 98,400 108,732 (10,332) 125,310 Contractual services 110,930 114,761 (3,831) 99,678 Commodities 49,090 56,333 (7,243) 37,685 Total building maintenance 258,420 279,826 (21,406) 262,673 (Continued) Page 55 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) 116,594 (16,594) 81,415 1996 2,373 1995 3,609 103,090 118,967 Variance 85,024 1,345,463 1,350,110 (4,647) Favorable 88,251 101,471 Budget Actual (unfavorable) Actual Paths and hard surfaces: 1,943,906 64,200 61,715 Personal services $ 14,900 15,985 (1,085) 12,121 Contractual services 47,380 46,720 660 65,480 Commodities 8,240 8,644 (404) 9,447 Total paths and hard surfaces 70,520 71,349 (829) 87,048 Skating rinks: Personal services Commodities Total skating rinks Total maintenance Capital outlay Total parks Unallocated general expenditures: Human Rights Commission South Hennepin Human Services City's share of special assessment Fireworks Contingencies Deer control Suburban Rate Authority Reserve rebuild Total unallocated general expenditures Central services Total expenditures 100,000 116,594 (16,594) 81,415 3,090 2,373 717 3,609 103,090 118,967 (15,877) 85,024 1,345,463 1,350,110 (4,647) 1,275,267 88,251 101,471 (13,220) 93,010 2,052,996 2,033,316 19,680 1,943,906 64,200 61,715 2,485 63,092 17,865 17,865 0 17,345 33,700 18,842 14,858 20,781 7,350 7,350 0 7,100 63,000 135,944 (72,944) 186,187 7,500 5,499 2,001 10,647 3,825 4,000 (175) 4,000 84,000 0 84,000 0 281,440 251,215 30,225 309,152 0 263,007 (263,007) (131,459) $ 16,454,133 16,337,518 116,615 15,314,377 CITY OF EDINA, MINNESOTA General Fund Schedule of Central Services Expenditures - Budget and Actual Year ended December 31, 1996 (with comparative actual amounts for year ended December 31, 1995) 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 operation: Personal services Contractual services Commodities Fixed charges Capital outlay Total equipment operation Total central services expenditures Less allocation to other activities Net central services Page 56 1996 1995 Variance Favorable Budget Actual (unfavorable) Actual $ 3,404,715 3,566,809 (162,094) 3,131,787 22,000 42,528 (20,528) 35,317 20,309 22,112 (1,803) 5;786 3,447,024 3;631,449 (184,425) 31172,890 61,160 57,869 3,291 53,929 41,000 39,169 1,831 37,036 32;900 23,823 9,077 26,527 14,424 14,424 0 14,124 149,484 135,285 14,199 130,616 60,904 76,495 (15,591) 83,500 79,500 79,836 (336) 67,795 36,000 52,573 (16,573) 39,766 9,120 9,120 0 8,880 4,460 5,711 (1,251) 3,448 189,984 223,735 (33,751) 203,389 267,625 252,819 14,806 285,427 75,000 92,210 (17,210) 84,920 432,500 475,109 (42,609) 437,536 208;980 208,980 0 206;220 19,431 28,084 (8,653) 19,551 1,003,536 1,057,202 (53,666) 1,033,654 4,790,028 5,047,671 (257,643) 4,540,549 4,790,028 4,784,664 5,364 4,672,008 0 263,007 (263,007) (131,459) Page 57 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. Assets Investments Accounts receivable Accrued interest receivable Due from other governments Total assets Liabilities and Fund Balance Liabilities: Accounts payable Salaries Payable Due to other funds Due to other governments Compensated absences Total liabilities Page 58 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Balance Sheet December 31, 1996 (with comparative totals for December 31, 1995) Community . 28,326 40,082 12,195 Development 995 Totals 724 Block Grant Communications 1996 1995 78 0 78 $ 0 830,195 830;195 829,012 145 59,581 59,726 54,541 0 9,501 9,501 '9,204 133,337 0 133,337 .39,506 $ 133,482 899,277 1,032,759 932,263 11,756 28,326 40,082 12,195 128 995 1,123 724 121,520 86,667 208,187 101,753 78 0 78 20 0 1,296 1,296 676 133,482 117,284 250,766 115,368 Fund balance: Unreserved - undesignated 0 781,993 781,993 816,895 Total liabilities and fund balance $ 133,482 899,277 1,032,759 932,263 CITY OF EDINA, MINNESOTA . Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 1996 (with comparative totals for year ended December 31, 1995) Community 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 Page 59 Development Totals Block Grant Communications 1996 1995 $ 0 224,489 224,489 209,519 210,590 0 210,590 181,767 0 36,480 36,480 45,337 210,590 260,969 471,559 436,623 10,626 55,727 66,353 57,063 199,964 193,433 393,397 349,699 0 23,712 23,712 4,760 0 21,588 21,588 21,480 0 1,411 1,411 8,000 210,590 295,871 506,461 441,002 0 (34,902) (34,902) (4,379) 0 816,895 816,895 821,274 $ 0 781,993 781,993 816,895 Page 60 DEBT SERVICE FUNDS The Debt Service Funds finance and account for the payment of principal and interest on the General Obligation Redevelopment, General Obligation Park Improvements 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, 1996 (with comparative totals for December 31, 1995) Assets Cash & investments with fiscal agents Accounts receivable Special assessments receivable: Delinquent Current Deferred Bloomington Due from other funds Advance to other funds Due from other governments Total assets Liabilities and Fund Balance Liabilities Due to other governments Deferred revenue Total liabilities Fund balance: Reserved for debt service Reserved for advances to other funds Total fund balance Total liabilities and fund balance Page 61 General Improvement 168,632 181,604 Debt Bond Totals 2,766,615 Service Redemption If 1996 1995 $ 20,883,343 0 20,883,343 37,051,695 0 47,742 47,742 33,210 0 11,201 11,201 23,258 0 438,322 438,322 439,501 0 2,181,815 2,181,815 2,303,856 0 144,800 144,800 156,867 200,000 0 200,000 200,000 0 647,981 647,981 380,922 0 12,690 12,690 872 $ 21,083,343 3,484,551 24,567,894 40,590;181 0 168,632 168,632 181,604 0 2,631,338 2,631,338 2,766,615 0 2,799,970 2,799,970 2,948,219 21,083,343 36,600 21,119,943 37,261,040 0 647,981 647,981 380,922 21,083,343 684,581 21,767,924 37,641,962 $ 21,083,343 3,484,551 24,567,894 40,590,181 Page 62 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 1996 (with comparative totals for year ended December 31, 1995) General Improvement Debt Bond Totals Service Redemption 11 1996 1995 Revenues: Special assessments 0 806,292 806,292 723,714 Interest on funds held with fiscal agent $ 1,175,976 0 1,175,976 1,742,621 1,175,976 806,292 1,982,268 2,466,335 Expenditures: Current: Other 0 3,083 3,083 1,659 Debt service: Bond principal 955,000 445,000 1,400,000 2,495,000 Interest and fiscal charges 4,817,580 63,895 4,881,475 5,378,815 Total expenditures 5,772,580 511,978 6,284,558 7,875,474 Excess (deficiency) of revenue over expenditures (4,596,604) 294,314 (4,302,290) (5,409,139) Other financing sources (uses): Operating transfer in: HRA 4,243,252 0 4,243,252 4,309,614 Proceeds of refunding bonds 10,050,000 10,050,000 0 Payment to refunded bond escrow agent (10,050,000) 0 (10,050,000) 0 Payment from escrow agent to refund bonds (15,815,000) 0 (15,815,000) 0 Total other financing sources (uses) (11,571,748) 0 (11,571,748) 4,309,614 Excess (deficiency) of revenues and other financing sources over expenditures (16,168,352) 294,314 (15,874,038) (1,099,525) Fund balance - January 1 37,251,695 390,267 37,641,962 38,741,487 Fund balance - December 31 $ 21,083,343 684,581 21,767,924 37,641,962 Page 63 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. Park Improvements Fund: This fund is used to account for projects funded by the 1996 referendum and financed by the General Obligation Park Improvements Series 1996B bond. Revolving Fund: This fund was established to provide financing for capital improvements as designated in the City's capital improvement budget. Assets CITY OF EDINA, MINNESOTA Capital Project Funds Combining Balance Sheet December 31, 1996 (with comparative totals for December 31, 1995) Construction Cash $ 0 Investments 0 Accounts receivable 7,386 Accrued interest receivable 0 Special assessments receivable: Housing and 1995 150,185 Redevelopment 24, 794, 529 17, 738, 577 Authority of Park 272,730 Edina Improvements Revolving 150,185 .0 0 10,775,373 7,475,935 6,543,221 144,204 0 8,604 129,259 112,649 30,822 Page 64 Totals 1996 1995 150,185 199,090 24, 794, 529 17, 738, 577 160,194 14,292 272,730 139,448 Delinquent 0 0 0 1,369 1,369 1,206 Deferred 0 0 0 99,390 99,390 126,705 Loan receivable 0 1,616,446 0 0 1,616,446 1,460,612 Due from other funds 0 907,733 0 0 907,733 2,843,544 Advance to other funds 0 0 0 272,550 272,550 307,095 Due from other governments 0 0 0 182 182 45,378 Total assets $ 7,386 13,723,200 7,588,584 6,956,138 28,275,308 22,875,947 Liabilities and Fund Balance Liabilities: Accounts payable 25,880 38,705 177,073 82,630 324,288 22,958 Salaries payable 89 0 180 889 1,158 479 Contracts payable 66,478 0 12,637 28,037 107,152 54,968 Due to other funds 4,394,862 0 184,415 0 4,579,277 5,427,783 Due to other governments 0 0 0 650 650 1,493,817 Deposits payable 219,838 0 0 0 219,838 91,108 Taxes payable 0 0 0 0 0 51,320 Deferred revenue 0 0 0 100,759 100,759 127,911 Total liabilities 4,707,147 38,705 374,305 212,965 5,333,122 7,270,344 Fund balance(deficit): Reserved for encumbrances 136,695 0 1,321,393 17,364 1,475,452 65,211 Reserved for special projects 0 0 0 78,342 78,342 26,458 Reserved for advances to other funds 0 0 0 272,550 272,550 307,095 Unreserved - undesignated (4,836,456) 13,684,495 5,892,886 6,374,917 21,115,842 15,206,839 Total fund balance (deficit) (4,699,761) 13,684,495 7,214,279 6,743,173 22,942,186 15,605,603 Total liabilities and fund balance $ 7,386 13,723,200 7,588,584 6,956,138 28,275,308 22,875,947 Page 65 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Year ended December 31, 1996 (with comparative totals for year ended December 31, 1995) Housing and Redevelopment Authority of Park Totals Construction Edina Improvements Revolving 1996 1995 Revenues: Tax increments $ 0 4,341,962 0 0 4,341,962 4,382,705 Special assessments 0 0 0 163,176 163,176 135,183 Intergovemmental 2,204,412 0 0 0 2,204,412 3,984,044 Interest on investments 0 670,861 167,507 58,466 896,834 351,060 Rental of property 0 0 0 4,744 4,744 4,056 Other revenues 13,921 63,196 227 204,272 281,616 544,101 Total revenues 2,218,333 5,076,019 167,734 430,658 7,892,744 9,401,149 Expenditures: Current Other. Personal services 0 180,000 114,929 45,635 340,564 227,160 Professional fees 0 99,156 326,089 90,254 515,499 37,570 Other 0 41,992 95,432 25,696 163,120 460,752 Construction costs 1,370,627 1,292,228 459,538 933,579 4,055,972 4,352,521 Total expenditures 1,370,627 1,613,376 995,988 1,095,164 5,075,155 5,078,003 Excess (deficiency) of revenues over expenditures 847,706 3,462,643 (828,254) (664,506) 2,817,589 4,323,146 Nonopeaating revenues: Donations 0 0 100 19,554 19,654 0 Total nonoperating revenues 0 0 100 19,554 19,654 0 Income before operating transfers 847,706 3,462,643 (828,154) (644,952) 2,837,243 4,323,146 Other financing sources (uses): Operating transfers in (out): General fund 0 0 0 50,159 50,159 50,159 General debt service fund 0 (4,243,252) 0 0 (4,243,252) (4,309,614) Capital leases 0 0 0 650,000 650,000 0 Proceeds from sale of bonds 0 0 8,042,433 0 8,042,433 0 Total other financing sources (uses) 0 (4,243,252) 8,042,433 700,159 4,499,340 (4,259,455) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 847,706 (780,609) 7,214,279 55,207 7,336,583 63,691 Fund balance (deficit) -January 1 (5,547,467) 14,465,104 0 6,687,966 15,605,603 15,541,912 Fund balance (deficit)- December 31 $ (4,699,761) 13,684,495 7,214,279 67743,173 22,942,186 15,605,603 Page 66 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/Centennial Lake 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. Page 67 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Balance Sheet December 31, 1996 (with comparative totals for December 31, 1995) Advance to other'funds Property and equipment, net Discounts on bonds Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Salaries payable Contracts payable Accrued interest payable Due. to other funds Due to other governments Compensated absences payable Total current liabilities Long -term liabilities: Deposits payable Deferred revenue Advance from other funds Reserve for construction Obligation under capital lease Bonds payable Total long -term liabilities Total liabilities Fund equity: Contributed capital Retained earnings (deficit): Reserved for debt service Reserve for construction U nreserved- undesignated Total retained earnings (deficit) Total liabilities and fund equity 1,489,364 226,260 74,975 Swimming Assets Utilities Liquor Pool Current assets: $ 25,581,454 1,621,843 680,252 Petty cash and change funds $ 0 3,640 0 Cash with fiscal agents 0 0 0 Receivables: 0 23,552 0 Accounts 3,233 2,103 35 Customers 2,089,453 0 0 Interest 0 0 0 Special Assessments 20,627 0 0 Due from otherIfunds 0 0 0 Due from other governments 3,757 0 0 Inventory 17,230 712,491 0 Prepaid expenses 0 0 0 Total current assets . 2,134,300 718,234 35 Advance to other'funds Property and equipment, net Discounts on bonds Total assets Liabilities and Fund Equity Current liabilities: Accounts payable Salaries payable Contracts payable Accrued interest payable Due. to other funds Due to other governments Compensated absences payable Total current liabilities Long -term liabilities: Deposits payable Deferred revenue Advance from other funds Reserve for construction Obligation under capital lease Bonds payable Total long -term liabilities Total liabilities Fund equity: Contributed capital Retained earnings (deficit): Reserved for debt service Reserve for construction U nreserved- undesignated Total retained earnings (deficit) Total liabilities and fund equity 1,489,364 226,260 74,975 21,954,581 677,349 599,553 3,209 0 5,689 $ 25,581,454 1,621,843 680,252 155,494 197,533 107 12,356 15,747 0 9,788 0 0 23,552 0 17,874 0 0 0 10,127 97,777 0 30,753 17,066 0 242,070 328,123 17,981 0 0 0 19,808 0 0 0 0 0 0 0 0 0 0 0 1,210,000 0 642,750 1,229,808 0 642,750 1,471, 878 328,123 660,731 0 0 0 274,998 0 32,500 0 0 0 23,834,578 1,293,720 (12,979) 24,109, 576 1,293,720 19,521 $ 25,581,454 1,621,843 680,252 Page 68 Golf . Gun Art Edinborough Park Totals Course Arena Range Center Centennial Lake 1996 1995 2,600 700 0 225 1,500 8,665 9,240 2,198,493 1,841,647 0 0 441 4,040,581 4,619,131 29,222 74,678 0 0 355 109,626 243,524 0 0 0 0 0 2,089,453 2,111,802 0 0 0 0 69,673 69,673 68,926 0 0 0 0 0 20,627 1,759 0 0 0 0 81,541 81,541 72,863 0 0 0 0 0 3,757 7,449 58,821 0 0 9,064 0 797,606 623,764 0 0 0 0 0 0 288,506 21289,136 1,917,025 0 9,289 153,510 7,221,529 8,046,964 0 0 0 285 0 1,790,884 2,093,193 7,910,663 1,665,892 16,476 199,823 808,811 33,833,148 33,283,222 54,756 17,133 0 0 0 80,787 95,742 10,254,555 3,600,050 16,476 209,397 962,321 42,926,348 43,519,121 45,077 12,841 1,162 9,541 34,327 456,082 378,982 11,950 5,267 0 1,504 10,338 57,162 43,640 0 0 0 0 0 9,788 0 251,315 115,117 0 0 0 407,858 453,275 200,000 50,000 13,831 0 205,984 469,815 298,213 2,631 847 32 570 1,305 113,289 126,204 35,331 14,059 0 4;480 21,847 123,536 109,069 546,304 198,131 15,025 16,095 273,801 1,637,530 1,409,383 6,651 3,500 0 0 0 10,151 16,276 4,593 5,040 0 0 0 29,441 15,531 830,177 754,006 0 0 1,127,232 2,711,415 2,781,210 0 0 0 0 0 0 750 32,400 291,600 0 0 81,000 405,000 450,000 8,363,275 3,658,975 0 0 0 13,875,000 15,045,000 9,237,096 4,713,121 0 0 1,208,232 17,031,007 18,308,767 9,783,400 4,911,252 15,025 16,095 1,482,033 18,668,537 19,718,150 0 0 0 0 628,981 628,981 699,706 1,115,031 184,591 0 0 0 1,607,120 1,607,120 0 0 0 750 0 750 0 (643,876) (1,495,793) 1,451 192,552 (1,148,693) 22,020,960 21,494,145 471,155 (1,311,202) 1,451 193,302 (1,148,693) 23,628,830 23,101,265 10,254,555 3,600,050 16,476 209,397 962,321 42,926,348 43,519,121 Page 69 CITY OF EDINA, MINNESOTA Enterprise Funds Combing Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) December 31, 1996 (with comparative totals for December 31, 1995) Swimming Utilities Liquor Pool Sales and cost of sales: Sales $ 0 6,399,235 0 Cost of sales 0 4,813,865 0 Gross profit 0 1,585,370 0 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 Miscellaneous expense Interest from fiscal agent Interest and fiscal charges Interest on capital lease Gain (loss) on sale of fixed assets Amortization of bond discount 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 Gun Range 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 7,747,160 0 356;093 7,747,160 1,585,370 356,093 3,423,248 0 0 769,830 546,881 131,787 1,296,525 145,745 57,143 414,995 33,419 17,706 379,968 217,464 10,068 721,187 46,401 55,428 7,005,753 989,910 272,132 741,407 595,460 83,961 0 0 0 0 0 0 0 (612) 0 0 0 0 (52,018) 0 (36,481) 0 0 0 5,856 0 0 (1,540) 0 (356) (47,702) (612) (36,837) 693,705 594,848 47,124 0 (400,000) 0 0 0 0 0 (95,000) 0 0 0 0 0 0 0 0 (5,000) 0 0 0 0 0 (500,000) 0 693,705 94,848 47,124 0 0 0 693,705 94,848 47,124 23,415,871 1,198,872 (27,603) $ 24,109,576 1,293,720 19,521 Golf Course Arena Gun Art Range Center Page 70 Edinborough Park Totals Centennial Lake 1996 1995 0 0 0 0 0 6,399,235 6,004,554 0 0 0 0 0 4,813,865 4,528,788 0 0 0 0 0 1,585,370 1,475,766 2,962,410 746,504 29,492 232,702 534,278 12,608,639 11,939,010 2,962,410 746,504 29,492 232,702 534,278 14,194,009 13,414,776 0 0 0 0 0 3,423,248 3,359,464 1,128,524 296,882 21,088 222,485 597,606 3,715,083 3,361,826 392,376 205,276 6,262 27,387 273,022 2,403,736 2,457,552 232,277 35,805 10,609 34,855 156,578 936,244 818,483 194,743 55,668 2,412 22,332 148,896 1,031,551 966,780 563,841 137,048 2,862 28,262 107,344 1,662,373 1,536,055 2,511,761 730,679 43,233 335,321 1,283,446 13,172,235 12,500,160 450,649 15,825 (13,741) (102,619) (749,168) 1,021,774 914,616 0 0 0 0 0 0 122,898 96,561 (506,029) (232,290) (1,730) (15,573) 26,675 0 (8,583) (4,477) (366,769) (155,779) 83,880 (139,954) 0 0 424,425 424,425 439,582 0 14,479 0 14,479 23,039 0 8,187 0 7,575 4,344 0 0 0 219,459 221,982 0 0 0 (826,818) (917,427) 0 0 (4,326) (21,629) (23,265) 0 0 0 32,531 0 0 0 0 (14,956) (14,955) 0 22,666 420,099 (164,934) (266,700) (13,741) (79,953) (329,069) 856,840 647,916 0 0 0 0 0 (400,000) (33;000) 0 0 0 0 0 0 20,000 0 0 0 0 0 (95,000) (120,413) 0 0 5,000 95,000 0 100,000 100,000 0 0 0 0 0 0 (97,170) 0 0 0 0 0 (5,000) 0 0 0 0 0 0 0 117,583 0 0 5,000 95,000 0 (400,000) (13,000) 83,880 (139,954) (8,741) 15,047 (329,069) 456,840 634,916 0 0 0 0 70,725 70,725 72,867 83,880 (139,954) (8,741) 15,047 (258,344) 527,565 707,783 387,275 (1,171,248) 10,192 178,255 (890,349) 23,101,265 22,393,482 471,155 (1,311,202) 1,451 193,302 (1,148,693) 23,628,830 23,101,265 Cash flows from capital financing activities Payment to other funds 0 0 Page 71 CITY OF EDINA, MINNESOTA (1,682,147) (113,131) (36,095) Enterprise Funds 5,856 0 0 Combining Statement of Cash Flows (370,000) 0 (7,250) December 31, 1996 0 0 0 (with comparative totals for December 31, 1995) 0 0 Interest paid on capital lease 0 0 Swimming Cash flows from operating activities: Utilities Liquor Pool Operating income (loss) $ 741,407 595,460 83,961 Adjustments to reconcile operating income to net cash provided by operating activities 0 0 0 Depreciation expense 721,187 46,401 55,428 Changes in assets and liabilities: 0 0 0 (Increase) decrease.in accounts receivable 894 (9) (35) (Increase) decrease.jn customer accounts receivable 22,349 0 0 (Increase) decrease in special assessments (18,868) 0 0 Decrease in due from other governments 448 0 0 Increase in inventory , (733) (153,894) 0 (Increase) decrease in prepaid expenses 288,506 0 0 Decrease in accounts payable 27,766 65,562 (4,233) Decrease in salaries payable (3,462) 8,602 0 Decrease in contracts payable 9,788 0 0 Increase (decrease) in accrued interest payable (11,922) 0 (615) (Increase) decrease in due to other governments (37,821) 27,363 0 (Decrease) incxease,in_.compensated absences payable 2,828 3,119 0 Increase (decrease) in deposits payable 0 0 0 Increase in deferred revenue 19,808 0 0 (Increase) decrease in due from other funds 0 0 0 (Increase) decrease in due to other funds 0 0 0 Total adjustments 1,020,768 (2,856) 50,545 Net cash provided (used) by operating activities 1,762,175 592,604 134,506 Cash flows from noncapital financing activities: Donations 0 0 0 Miscellaneous expense 0 (612) 0 (Increase) decrease in advance to other funds 336,135 21,139 (54,680) Increase in advance from other funds 0 0 0 Decrease in reserve for construction 0 0 0 Operating transfer (out) — General Fund 0 (400,000) 0 Operating transfer in— Revolving Fund 0 0 0 Operating transfer (out) —Art Center 0 (95,000) 0 Operating transfer in— Liquor Store Fund 0 0 0 Operating transfer (out) —Arena 0 0 0 Operating transfer (out) —Gun Range 0 (5,000) 0 Operating transfer in —Golf Dome 0 0 0 Net cash (used) provided for noncapital financing activities 336,135 (479,473) (54,680) Cash flows from capital financing activities Payment to other funds 0 0 0 Net acquisition of capital assets (1,682,147) (113,131) (36,095) Gain (loss) on sale of fixed assets 5,856 0 0 Principal paid on revenue bonds (370,000) 0 (7,250) Principal paid on capital lease 0 0 0 Interest earned from fiscal agent 0 0 0 Interest paid on capital lease 0 0 0 Interest paid on bonds (52,019) 0 (36,481) Net cash used for capital financing activities (2,098,310) (113,131) (79,826) Cash flows from investing activities Change in investments 0 0 0 Decrease in interest receivable 0 0 0 Interest on investments 0 0 0 Net cash provided by investing activities 0 0 0 Net increase (decrease) in cash and cash equivalents 0 0 0 Cash and equivalents, beginning of year 0 3,640 0 Cash and equivalents, end of year , $ 0 3,640 0 Page 72 Golf Gun Art Edinborough Park Totals Course Arena. Range Center Centennial Lake 1996 1995 450,649 15,825 (13,741) (102,619) (749,168) 1,021,774 914,616 563,841 137,048 2,862 28,262 107,344 1,662,373 1,536,055 (7,092) 98,322 0 0 41,818 133,898 (160,777) 0 0 0 0 0 22,349 (496,848) 0 0 0 0 0 (18,868) 15,295 3,244 0 0 0 0 3,692 91,610 (18,481) 0 0 (734) 0 (173,842) (44,446) 0 0 0 0 0 288,506 (288,506) (12,551) (2,577) 830 (1,119) 3,422 77,100 82,096 3,017 3,546 (130) 475 1,474 13,522 13,903 0 0 0 0 0 9,788 0 (31,987) (893) 0 0 0 (45,417) 177,019 (1,523) (1,022) 12 128 (52) (12,915) (105,651) 5,229 674 0 (1,348) 3,965 14,467 6,684 (6,125) 0 0 0 0 (6,125) 1,259 (5,898) 0 0 0 0 13,910 2,931 0 0 0 0 (8,678) (8,678) (72,863) 0 0 5,168 (39,550) 205,984 171,602 (20,850) 491,674 235,098 8,742 (13,886) 355,277 2,145,362 736,911 942,323 250,923 (4,999) (116,505) (393,891) 3,167,136 1,651,527 0 0 0 14,479 0 14,479 23,039 0 0 0 8,187 0 7,575 3,948 0 0 0 (285) 0 302,309 61,306 (18,755) (54;448) 0 0 3,408 (69,795) (258,769) 0 0 0' (750) 0 (750) 0 0 0 0 0 0 (400,000) (33,000) 0 0 0. 0 0 0 20,000 0 0 0 0 0 (95,000) (120,413) 0 0 5,000 95,000 0 100,000 100,000 0 0 0 0 0 0 (97,170) 0 0 0 0 0 (5,000) 0 0 0 0 0 0 0 117,583 (18,755) (54,448) 5,000 116,631 3,408 (146,182) (183,476) 0 0 0 0 0 0 (10,000) (360,374) (509) (1) (1) (20,041) (2,212,299) (970,501) 26,675 0 0 0 0 32,531 396 (773,500) (19,250) 0 0 0 (1,170,000) (345,000) (3,600) (32,400) 0 0 (9,000) (45,000) (40,000) 122,898 96,561 0 0 0 219,459 221,982 (1,730) (232,290) 0 0 (4,326) (238,346) (23,265) (506,029) (15,573) 0 0 0 (610,102) (917,427) (1,495,660) (203,461) (1) (1) (33,367) (4,023,757) (2,083,815) 0 0 0 0 0 0 53,833 0 0 0 0 (747) (747) 34,998 0 0 0 0 424,425 424,425 439,582 0 0 0 0 423,678 423,678 528,413 (572,092) (6,986) 0 125 (172) (579,125) (87,351) 2,773,185 1,849,333 0 100 2,113 4,628,371 4,715,722 2,201,093 1,842,347 6 225 1,941 4,049,246 4,628,371 CITY OF EDINA, MINNESOTA Utilities Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets Current assets: Receivables: Accounts Customers Assessments Due from other governments Inventory Prepaid expenses Total current assets Advance to other funds Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Contracts payable Accrued interest payable Due to other governments Compensated absences payable Total current liabilities Long -term liabilities: Deferred revenue Bonds payable Total liabilities Retained earnings: Reserved for debt service Unreserved-- undesig nated Total retained earnings Total liabilities and retained earnings 1996 1995 $ 3,233 2,089,453 20,627 3,757 17,230 0 2,134,300 1,489,364 21,954,581 3,209 $ 25,581,454 4,127 2,111,802 1,759 4,205 16,497 288,506 2,426,896 1,825,499 20,993,621 4,748 25,250,764 155,494 127,728 12,356 15,818 9,788 0 23,552 35,474 10,127 47,948 30,753 27,925 242,070 254,893 19,808 0 1,210,000 1,580,000 1,471,878 1,834,893 274,998 274,998 23,834,578 23,140,873 24,109,576 23,415,871 $ 25,581,454 25,250,764 Page 73 Page 74 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 Operating revenues: Storm sewer charges $ 508,895 581,114 Water charges 2,367,540 2,200,952 Sewer charges 4,208,906 4,153,929 Recycling 506,282 455,951 Sale of meters 15,734 19,130 Other 139,803 180,255 Total operating revenues 7,747,160 7,591,331 Operating expenses: Disposal charges - contractual services 3,423,248 3,359,464 Source of supply: Personal services 105,839 129,333 Contractual services 79,087 62,871 Commodities 94,207 60,992 Distribution: Personal services 251,286 208,235 Contractual services 387,670 426,299 Commodities 214,711 161,357 Purification: Personal services 53,922 55,604 Contractual services 79,712 76,327 Commodities 65,848 53,668 Source of collection: Personal services 56,915 48,936 Contractual services 3,731 3,536 Commodities 6,805 46,904 Storm sewer: Personal services 45,848 29,995 Contractual services 57,200 116,154 Commodities 26,351 15,618 General and administrative: Personal services 236,873 240,349 Contractual services 208,591 187,781 Commodities 6,516 6,264 Recycling: Personal services 19,147 16,139 Contractual services 480,534 411,549 Commodities 557 4,065 Central services 379,968 370,932 Depreciation 721,187 672,376 Total operating expenses 7,005,753 6,764,748 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 Operating income Nonoperating revenues (expenses): Interest and fiscal charges Gain from sale of fixed assets Amortization of bond discount Total nonoperating expenses Net income Retained earnings— January 1 Retained earnings— December 31 $ 741,407 826,583 (52,018) (78,182) 5,856 0 (1,540) (1,540) (47, 702) (79, 722) 693,705 746,861 23, 415, 871 22, 669, 010 $ 24,109,576 23,415,871 Page 75 Page 76 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended year ended December 31,1995) Cash flows from capital financing activities: Net acquisition of capital assets Gain from sale of fixed assets Principal paid on bonds Interest paid on bonds Net cash used by capital financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year (1,682,147) 5,856 (370,000) (52,019) (2,098,310) 0 IC (532,018) 0 (345,000) (78,182) (955,200) (48,643) 48,643 Cash and cash equivalents, end of year $ 0 0 1996 1995 Cash flows from operating activities: Operating income $ 741,407 826,583 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 721,187 672,376 Changes in assets and liabilities: (Increase) decrease in accounts receivable 894 (4,127) (Increase) decrease in customer accounts receivable 22,349 (496,848) (Increase) decrease in assessments receivable (18,868) 15,295 Decrease in due from other governments 448 94,854 (Increase) decrease in inventory (733) 552 (Increase) decrease in prepaid expenses 288,506 (288,506) Increase in accounts payable 27,766 42,977 Increase (decrease) in salaries payable (3,462) 9,396 Increase in contracts payable 9,788 0 Increase (decrease) in accrued interest payable (11,922) 287 Decrease in due to other governments (37,821) (113,672) Increase (decrease) in compensated absences payable 2,828 (1,179) Increase in deferred revenue 19,808 0 Total adjustments 1,020,768 (68,595) Net cash provided by operating activities 1,762,175 757,988 Cash flows from noncapital financing activities: Decrease in advance to other funds 336,135 148,569 Net cash provided by noncapital financing activities 336,135 148,569 Cash flows from capital financing activities: Net acquisition of capital assets Gain from sale of fixed assets Principal paid on bonds Interest paid on bonds Net cash used by capital financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year (1,682,147) 5,856 (370,000) (52,019) (2,098,310) 0 IC (532,018) 0 (345,000) (78,182) (955,200) (48,643) 48,643 Cash and cash equivalents, end of year $ 0 0 CITY OF EDINA, MINNESOTA Liquor Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets 1996 Current assets: Petty cash and change funds Accounts receivable Inventory Total current assets Advance to other funds Property and equipment, net Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Due to other governments Compensated absences payable Total current liabilities Retained earnings: U nreserved— undesignated Total liabilities and retained earnings $ 3,640 2,103 712,491 718,234 226,260 677,349 $ 1,621,843 197,533 15,747 97,777 17,066 328,123 1,293,720 $ 1,621,843 1995 3,640 2,094 558,597 564,331 247,399 610,619 1,422,349 131,971 7,145 70,414 13,947 223,477 1,198,872 1,422,349 Page 77 Page 78 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1996 (with comparative totals for year ended December 31, 1995) Operating expenses: Selling 1996 131,935 119,447 1995 50th Street Yorkdale Vernon Totals Totals Sales $ 1,484,941 2,384,797 2,529,497 6,399,235 61004,554 Cost of sales 1,109,587 1,796,799 1,907,479 4,813,865 4,528,788 Gross profit 375,354 587,998 622,018 11585,370 1,475,766 Operating expenses: Selling 95,847 131,935 119,447 347,229 309,928 Occupancy 31,555 59,829 35,018 126,402 117,102 Administrative 141,096 207,708 167,475 516,279 468,236 Total operating expenses 268,498 399,472 321,940 989,910 895,266 Operating income 106,856 188,526 300,078 595,460 580,500 Nonoperating revenues (expenses): Miscellaneous expense 257 (243) (626) (612) (177) Total nonoperating revenues (expenses) 257 (243) (626) (612) (177) Income before operating transfer out $ 107,113 188,283 299,452 594,848 580,323 Operating transfer out: General Fund (400,000) (383,000) Operating transfer out: Art Center (95,000) (100,000) Operating transfer out: Gun Range (5,000) 0 (500,000) (483,000) Net income 94,848 97,323 Retained earnings - January 1 1,198,872 1,101,549 Retained eamings- December 31 $ 1,293,720 1,198,872 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 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,-in accounts receivable Increase in inventory Increase in accounts payable Increase in salaries payable Increase in due to other governments Increase in,compensated absences payable Total 'adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Miscellaneous expense (Increase) decrease in advance to other funds Operating transfer (out) — General Fund Operating transfer (out) —Art Center Operating transfer (out) —Gun Range Net cash used by noncapital financing activities Cash flows from capital financing activities: Acquisition of capital assets 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 Page 79 1996 1995 595,460 580,500 46,401 47,615 (9) (1,931) (153,894) (44,664) 65,562 13,734 8,602 195 27,363 2,772 3,119 774 (2,856) 18,495 592,604 598,995 (612) (177) 21,139 (66, 968) (400,000) (383,000) (95,000) (100,006) (5,000) 0; (479,473) (550,145) (113,131) (53;714) (113,131) (53,714) 0 (4,864) 3,640 8,504 $ 3,640 3,640 CITY OF EDINA, MINNESOTA Liquor Fund Schedule of Operating Expenses Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) Selling: Personal services Contractual services Direct promotion Commodities Total selling Occupancy: Personal services Contractual services: Professional services Burglar alarm Heat Laundry and rug service Light and power Maintenance, renting and cooling Repair and maintenance Rubbish hauling Telephone Water and sewer service Commodities Depreciation Total occupancy Administrative: Personal services Contractual services: Data processing Mileage Professional service Miscellaneous Commodities Central services Total administrative Page 80 Totals 50th Street Yorkdale Vernon 1996 1995 84,544 111,533 109,401 305,478 276,160 4,795 10,048 4,312 19,155 9,570 6,508 10,354 5,734 22,596 24,198 95,847 131,935 119,447 347,229 309,928 663 3,745 1,014 5,422 7,169 0 1,192 0 1,192 196 321 329 281 931 939 819 1,514 1,269 3,602 3,043 505 2,028 592 3,125 1,936 9,301 20,552 8,656 38,509 34,632 184 425 0 609 1,039 1,209 1,800 1,199 4,208 4,680 776 1,066 566 2,408 2,654 3,434 3,805 2,963 10,202 7,746 191 215 192 598 522 803 7,817 575 9,195 4,930 13,349 15,341 17,711 46,401 47,615 31,555 59,829 35,018 126,402 117,102 70,505 96,533 68,943 235,981 252,341 . 1,488 1,972 1,972 5,432 (1,449) 0 1,950 0 1,950 1,965 12,502 19,189 15,033 46,724 30,422 3,384 1,132 2,584 7,100 4,605 309 244 1,075 1,628 2,488 52,908 86,688 77,868 217,464 177,864 141,096 207,708 167,475 516,279 468,236 $ 268,498 399,472 321,940 989,910 895,266 CITY OF EDINA, MINNESOTA Swimming Pool Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets 1996 Current assets: Accounts receivable $ 35 Total current assets 35 Advance to other funds Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Accrued interest payable Total current liabilities Long -term liabilities Bonds payable Total liabilities Retained earnings: Reserved for debt service Unreserved —u n d esig n ated Total retained earnings Total liabilities and retained earnings 1995 0 n 74,975 20,295 599,553 618,886 5,689 6,045 $ 680,252 645,226 107 4,340 17,874 18,489 17,981 22,829 642,750 650,000 660,731 672,829 32,500 32,500 (12,979) (60,103) 19,521 (27,603) $ 680,252 645,226 Page 81 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 Operating revenues: Season tickets General admissions Rentals and instruction programs Registration Concessions (less cost of goods sold) Total operating revenues Operating expenses: Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income Nonoperating expenses: Interest and fiscal charges Bond discount amortization Total nonoperating expenses Net income Retained earnings (deficit) — January 1 Retained earnings (deficit) — December 31 $ 190,142 92,258 9,730 32,160 176,367 81,926 9,208 31,200 30,750 329,451 131,787 119,686 57,143 50,343 17,706 11,593 10,068 9,432 55,428 65,915 272,132 256,969 83,961 72;482 (36,481) (37,125) (356) (355) (36,837) (37,480) 47,124 35,002 (27,603) (62,605) $ 19,521 (27,603) Page 82 CITY OF EDINA,'MINNESOTA Swimming Pool Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 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 accounts payable Decrease in accrued interest payable Decrease in due to other funds Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Increase in advance to other funds Net cash used by noncapital financing activities Cash flows from capital financing activities: Net acquisition of capital assets Principal paid on revenue bonds 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 Page 83 1996 1995 $ 83,961 72,482 55,428 65,915 (35) 0 (4,233) 3,979 (615) (61)' 0 (67,575) 50,545 2,258 134,506 74,740 (54,680) (20,295) (54,680) (20,295) .(36,095) (17,320) (7,250) 0 (36,481) (37,125) (79,826) (54,445) 0 0 0 0 $ 0 0 Page 84 CITY OF EDINA, MINNESOTA Golf Course Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets Current assets: Petty cash and change funds Cash with fiscal agents 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 Accrued interest payable Due to other funds Due to other governments Compensated absences payable Total current liabilities Long -term liabilities: Deposits payable Deferred revenue Advance from other funds Obligation under capital lease Bonds payable Total liabilities Retained earnings: Reserved for debt service Unreserved-- undesig nated Total retained earnings 1996 1995 $ 2,600 2,198,493 29,222 0 58,821 2,289,136 3,300 2,769,885 22,130 3,244 40,340 2,838,899 7,910,663 8,114,130 54,756 63,339 $ 10,254,555 11,016,368 45,077 11,950 251,315 200,000 2,631 35,331 546,304 6,651 4,593 830,177 32,400 8,363,275 9,783,400 1,115,031 (643,876) 471,155 57,628 8,933 283,302 200,000 4,154 30,102 584,119 12,776 10,491 848,932 36,000 9,136,775 10,629,093 1,115,031 (727,756) 387,275 Total liabilities and retained earnings $ 10,254,555 11,016,368 Page 85 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 Operating revenues: Greens fees $ 1,538,402 1,345,806 Rental fees 296,265 264,914 Patron cards 133,516 129,811 Concessions (less cost of goods sold) 156,263 135,310 Range 290,647 254,305 Dome . 372,877 310,792 Lessons 72,906 59,132 Pro. Shop (less cost of goods sold) 88,709 14,231 Other 12,825 18,814 Total operating revenues 2,962,410 2,533,115 Operating expenses: Administration 665,064 682,764 Building -club house 155,620 119,886 Maintenance of course and grounds 524,491 517,189 Range and grill 212,944 195,173 Dome 218,908 188,961 Normandale 98,394 103,336 Pro Shop 72,499 18,961 Depreciation 563,841 477,169 Total operating expenses 2,511,761 2,303,439 Operating income 450,649 229,676 Nonoperating revenues (expenses): Interest from fiscal agent 122,898 133,189 Interest and fiscal charges (506,029) (569,176) Interest on capital lease (1,730) (1,861) Gain (loss) on sale of fixed assets 26,675 (395) Amortization of bond discount (8,583) (8,583) Total nonoperating revenues(expenses) (366,769) (446,826) Net income (loss) before operating transfer out 83,880 (217,150) Operating transfers (out): Art center fund 0 (20,413) Arena fund 0 (97,170) 0 (117,583) Net income (loss) 83,880 (334,733) Retained earnings -- January 1 387,275 722,008 Retained earnings- December 31 $ 471,155 387,275 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 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 Increase in inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in accrued interest payable Increase (decrease) in due to other governments Increase in compensated absences payable Increase (decrease) in deposits payable Increase (decrease) in deferred revenue Decrease in due to other funds Total adjustments Net cash provided by operating activities Cash flow from noncapital financing activities: Decrease in advance from other funds Operating transfer out -Art Center Operating transfer out -Arena Net cash used by noncapital financing activities Cash flow from capital financing activities: Net acquisition of capital assets Gain (loss) from 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 by capital financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year Page 86 1996 1995 450,649 229,676 563,841 (7,092) 3,244 (18,481) (12,551) 3,017 (31,987) (1,523) 5,229 (6,125) (5,898) 0 491,674 942,323 (18,755) 0 0 (18,755) (360,374) 26,675 (773,500) (3,600) 122,898 (1,730) (506,029) (1,495,660) (572,092) 2,773,185 477,169 (15,844) (3,244) (4,648) 26,292 3,117 111,966 4,154 4,554 1,259 2,931° 170,000 777,706 1,007,382 (200,701) (20,413) (97,170) (318,284) (267,262) (395) 0 (3,200) 133,189 (1,861) (569,176) (708,705) (19,607) 2,792,792 Cash and cash equivalents, end of year $ 2,201,093 2,773,185 Page 87 CITY OF EDINA, MINNESOTA Golf Course Fund Schedule of Operating Expenses Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 Administration Personal services $ 357,821 359,418 Contractual services 85,565 113,314 Commodities 26,935 23,852 Central services 194,743 186,180 Total administration 665,064 682,764 Building -Club House Personal services 43,882 26,745 Contractual services 91,369 76,991 Commodities 20;369 16,150 Total building -Club House 155,620 119,886 Maintenance of course and grounds: Personal services 352,713 336,782 Contractual services 57,942 61,857 Commodities 113,836 118,550 Total maintenance of course and grounds 524,491 517,189 Range and grill: Personal services 171,972 171,358 Contractual services 4,282 4,218 Commodities 36,690 19,597 Total range and grill 212,944 195,173 Golf dome: Personal services 88,615 59,606 Contractual services 116,791 111,768 Commodities 13,502 17,587 Total golf dome 218,908 188,961 Normandale: Personal services 76,775 75,554 Contractual services 7,848 6,307 Commodities 13,771 21,475 Total normandale 98,394 103,336 Pro Shop Personal services 36,746 0 Contractual services 28,579 15,305 Commodities 7,174 3,656 72,499 18,961 Depreciation 563,841 477,169 Total operating expenses $ 2,511,761 2,303,439 CITY OF EDINA, MINNESOTA Arena Fund Balance, Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets Current assets: Petty cash and change funds Cash with fiscal agents Accounts receivable Total current assets Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Accrued interest payable Due to other funds Due to other governments Compensated absences payable Total current liabilities Long -term liabilities: Deposits payable Deferred revenue Advance from other funds Obligation under capital lease Bonds payable Total liabilities Retained earnings (deficit): Reserved for debt service U nreserved -- undesignated Total retained earnings (deficit) Total liabilities and retained earnings 1996 $ 700 1,841,647 74,678 1,917,025 1,665,892 17,133 $ 3,600,050 1995 700 1,848,633 173,000 2,022,333 1,802,431 21,610 3, 846, 374 12,841 15,418 5,267 1,721 115,117 116,010 50,000 50,000 847 1,869 14,059 13,385 198,131 198,403 3,500 3,500 5,040 5,040 754,006 808,454 291,600 324,000 3,658,975 3,678,225 4,911,252 5,017,622 184,591 184,591 (1,495,793) (1,355,839) (1,311,202) (1,171,248) $ 3,600,050 3,846,374 Page 88 Page 89 CITY OF EDINA, MINNESOTA Arena Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 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 Nonoperating revenues (expenses): Interest from fiscal agent Interest and fiscal charges Interest on capital lease Gain (loss) on sale of fixed assets Amortization of bond discount Total nonoperating expenses Net loss before operating transfer in Operating transfer in- Revolving fund Operating transfer in -Golf Dome Net income (loss) Retained earnings (deficit)- January 1 Retained earnings (deficit)- December 31 1996 1995 0 $ 584,048 559,668 7,487 8,273 11,469 15,242 26,412 31,556 73,303 74,427 20,381 27,119 12,173 10,656 11,231 12,347 746,504 739,288 296,882 261,389 205,276 180,883 35,805 29,961 55,668 53,988 137,048 143,897 730,679 670,118 15,825 69,170 96,561 88,793 (232,290) (232,944) (15,573) (16,751) 0 791 (4,477) (4,477) (155,779) (164,588) (139,954) (95,418) 0 10,000 0 97,170 0 107,170 (139,954) 11,752 (1,171,248) (1,183,000) $ (1,311,202) (1,171,248) Page 90 CITY OF EDINA, MINNESOTA Arena Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 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) decrease in accounts receivable Decrease in accounts payable Increase (decrease) in salaries payable Increase (decrease) in accrued interest payable Increase (decrease) in due to other governments Increase in compensated absences payable Increase in due to other funds Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Decrease in advance from other funds Operating transfer in— Revolving fund Operating transfer in —Golf Dome Net cash used provided by noncapital financing activities Cash flows from capital financing activities: Net acquisition of capital assets Gain from 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 revenue bonds Net cash used for capital financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 15,825 69,170 0 791 137,048 . 143,897 98,322 (104,353) (2,577) (5,248) 3,546 (1,621) (893) 64,827 (1,022) 1,000 674 1,300 0 20,000 235,098 119,802 250,923 188,972 (54,448) (51,509) 0 10,000 0 97,170 (54,448) 55,661 (509) (68,055) 0 791 (19,250) 0 (32,400) (28,800) 96,561 88,793 (232,290) (16,751) (15,573) (232,944) (203,461) (256,966) (6,986) (12,333) 1,849,333 1,861,666 $ 1,842,347 1,849,333 CITY OF EDINA, MINNESOTA Gun Range Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets 1996 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 liabilities Retained earnings: Unreserved— undesig nated Total liabilities and retained earnings 1995 $ 16,476 1:9,337 $ 16,476 19,337 1,162 0 13,831 32 15,025 1,451 $ 16,476 332 130 8,663 20 9,145 10,192 19,337 Page 91 CITY OF EDINA, MINNESOTA Gun Range Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 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 loss Nonoperating revenues: Transfer from Liquor Store Total nonoperating revenues Net loss before capital purchases Retained earnings - January 1 Retained earnings - December 31 $ 24,718 4,311 346 117 1995 21,893 3,849 245 102 26,089 21,088 20,492 6,262 6,280 10,609 7,114 2,412 2,340 2,862 2,825 43,233 39,051 (13,741) (12,962) 5,000 0 5,000 0 (8,741) (12,962) 10,192 23,154 $ 1,451 10,192 Page 92 Page 93 CITY OF EDINA, MINNESOTA Gun Range Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 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) decrease in accounts payable Decrease in salaries payable Increase (decrease) in due to other governments Increase in due to other funds Total adjustments Net cash used by operating activities Cash flows from noncapital financing activities: Operating transfer in— Liquor Store Net cash provided by noncapital financing activities Cash flows from capital financing activities: Net acquisition of capital assets 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 $ (13,741) (12,962) 2,862 2,825 830 (126) (130) (45) 12 (31) 5,168 8,663 8,742 111-286 (4,999) (1,676) 5,000 0 5,000 0 (1) (730) (1) (730) 0 (2,406) 0 2,406 $ 0 0 Page 94 CITY OF EDINA, MINNESOTA Art Center Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) Assets 1996 Current assets: 1995 Petty cash and change funds $ 225 100 Inventory 9,064 8,330 Total current assets 9,289 8;430 Advance to other funds 285 0 Property and equipment, net 199,823 228,084 Total assets $ 209,397 236,514 Liabilities and Retained Eaminas Current liabilities: Accounts payable 9,541 10,660 Salaries payable 1,504 1,029 Due to other funds 0 39,550 Due to other Governments 570 442 Compensated absences payable 4,480 5,828 Total current liabilities 16,095 57,509 Long -term liabilities: Reserve for construction 0 750 Total liabilities 16,095 58,259 Retained earnings: Reserve for construction 750 0 Unreserved — undesignated 192,552 178,255 Total retained earnings 193,302 178,255 Total liabilities and retained earnings $ 209,397 236,514 Page 95 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) Operating revenues: Memberships $ 22,702 16,472 Registration fees 177,051 166,832 Media Lab 17,290 0 Retail sales, less cost of goods sold 15,659 7,799 Total operating revenues 232,702 191,103 Operating expenses: Administration: Personal services 97,453 92,915 Contractual services ,3,453 3,372 Commodities 29,153 28,333 Central services 22,332 21,612 Total administration 152,391 146,232 Occupancy: Personal services 13,043 13,756 Contractual services 21,179 18,966 Commodities 5,186 4,395 Total occupancy 39,408 37,117 Media Lab: Personal services 10,253 0 Contractual services 769 0 Commodities 516 0 Total Media Lab 11,538 0 Class costs 1,986 1,287 Instructors - personal services 101,736 92,400 Depreciation 28,262 25,769 Total operating expenses 335,321 302,805 Operating loss (102,619) (111,702) Nonoperating revenues: Interest on investments 0 1,716 Donations 14,479 23,039 Miscellaneous expense 8,187 4,125 Total nonoperating revenues 22,666 28,880 Net loss before operating transfer in (79,953) (82,822) Operating transfer in- Revolving Fund 0 10,000 Operating transfer in- Liquor Store 95,000 100,000 Operating transfer in -Golf Dome 0 20,413 95,000 130,413 Net Income 15,047 47,591 Retained earnings- January 1 178,255 130,664 Retained earnings- December 31 $ 193,302 178,255 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 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 inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in due to other governments Increase (decrease) in compensated absences payable Decrease in due to other funds Total adjustments Net cash used by operating activities Cash flows from noncapital financing activities: Donations Miscellaneous expense Increase in advance to other funds Decrease in reserve for construction Operating transfer from Revolving Fund Operating transfer from Liquor Store Operating transfer from golf dome Net cash provided by noncapital financing activities Cash flow from capital financing activities: Payment to other funds Net acquisition of capital assets Net cash used by noncapital financing activities Cash flow from investing activities: Change 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 96 1996 1995 (102,619) 28,262 (734) (1,119) 475 128 (1,348) (39,550) (13,886) (116,505) 14,479 8,187 (285) (750) 0 95,000 0 116,631 0 (111,702) 25,769 4,314 670 41 (38) 430 (121,938) (90,752) (202,454) 23,039 4,125 0 0 10,000 100,000 20,413 157,577 (10,000) (1) (672) (1) (10,672) 0 53,833 0 1,716 0 55,549 125 100 100 $ 225 100 Page 97 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Balance Sheet December 31, 1996 (with comparative amounts for December 31, 1995) 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 Due to other funds Due to other government Compensated absences payable Total current liabilities Long -term liabilities: Advance from other funds Obligation under capital lease Total liabilities Fund equity: Contributed capital Retained earnings (deficit): Unreserved — undesignated Total retained earnings (deficit) 1996 $ 1,500 441 355 69,673 81,541 153,510 808,811 $ 962,321 1995 1,500 613 42,173 68,926 72,863 186,075 896,114 1,082,189 34,327 30,905 10,338 8,864 205,984 0 1,305 1,357 21,847 17,882 273,801 59,008 1,127,232 1,123,824 81,000 90,000 1,482,033 1,272,832 628,981 699,706 (1,148,693) (890,349) (1,148,693) (890,349) Total liabilities and retained earnings $ 962,321 1,082,189 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 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 on capital lease Total nonoperating revenues Net 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 1996 $ 251,944 153,512 65,745 13,695 24,547 5,468 13,262 6,105 534,278 597,606 273,022 156,578 148,896 107,344 1,283,446 (749,168) 424,425 (4,326) 420,099 (329,069) 1995 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) 0 350,000 (329,069) 44,082 70,725 (258,344) (890,349) $ (1,148,693) .72,867 116,949 (1,007,298) (890,349) Page 98 Page 99 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Cash Flows Year ended December 31, 1996 (with comparative amounts for year ended December 31, 1995) 1996 1995 Cash flows from operating activities: Operating loss $ (749,168) (739,131) Adjustments to reconcile operating income to net cash,provided by operating activities: Depreciation expense 107,344 100,489 Changes in assets and liabilities: (Increase) decrease in accounts receivable 41,818 (34,522) Increase (decrease) in accounts payable 3,422 (182) Increase in salaries payable 1,474 2,820 Increase (decrease) in due to other government (52) 164 Increase in compensated absences payable 3,965 805., Increase in due from other funds (8,678) (72,863) Increase (decrease) in due to other funds 205,984 (30,OOd) Total adjustments 355,277 (33,289) Net cash used by operating activities (393,891) (772,420) Cash flows from noncapital financing activities: Increase (decrease) in advance from other funds 3,408 (6,559) Operating transfer in - General Fund 0 350,000 Net cash provided by noncapital financing activities 3,408 343,441 Cash flow from capital financing activities: Net acquisition of capital assets (20,041) (30,730) Principal paid on capital lease (9,000) (8,000) Interest paid on capital lease (4,326) (4,653) Net cash used by capital financing activities (33,367) (43,383) Cash flows from investing activities: (Increase) decrease in interest receivable (747) 34,998 Interest on investments 424,425 437,866 Net cash provided by investing activities 423,678 472,864 Net increase (decrease) in cash and cash equivalents (172) 502 Cash and cash equivalents, beginning of year 2,113 1,611 Cash and cash equivalents, end of year $ 1,941 2,113 Page 100 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. CITY OF EDINA, MINNESOTA Agency Funds Statement of Changes in Assets and Liabilities Year ended December 31, 1996 Balance 1/1/96 Additions Page 101 Balance Deductions 12/31/96 Deferred Compensation Fund Assets: Cash & investments with plan administrators $ 7,578,164 639,117 0' 8,217,281 Liabilities: Due to participants $ 7,578,164 639,117 0 8,217,281 Police Seizure Fund $ 13,478 0 0 13,478 Due to other governments Assets: 40,980 0 81,839 Due to participants 7,578,164 Cash $ 54,337 40,980 0 95,317 Liabilities: Due to other funds 13;478 0 0 13,478 Due to other governments 40,859 40,980 0 81,839 $ 54,337 40,980 0 95,317 Totals --All Agency Funds Assets: Cash $ 54,337 40,980 0 95,317 Cash & investments with plan administrators 7,578,164 639,117 0 8,217,281 Total assets $ 7,632,501 680,097 0 8,312,598 Liabilities: Due to other funds $ 13,478 0 0 13,478 Due to other governments 40,859 40,980 0 81,839 Due to participants 7,578,164 639,117 0 8,217,281 Total liabilities $ 7,632,501 680,097 0 8,312,598 Page 102 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. CITY OF EDINA, MINNESOTA General Fixed Assets Account Group Schedule of General Fixed Assets December 31, 1996 (with comparative amounts for December 31, 1995) 1996 General fixed assets: Land and land improvements Buildings Furniture and fixtures Vehicles and equipment Parks Construction -in- progress Total general fixed assets Total investment in general fixed assets 1995 $ 29,274,238 27,769,302 19, 680, 962 19, 599, 311 858,131 725,847 9,156,826 8,981,591 7,355,921 7,325,444 2,083,678 1,068,623 $ 68,409,756 65,472,118 $ 68,409,756 65,472,118 Page 103 Page 104 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. Page 105 CITY OF EDINA, MINNESOTA General Long -term Debt Account Group Schedule of General Long -term Debt December 31, 1996 (with comparative amounts for December 31, 1995) 1996 1995 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 property taxes 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 Obligation under capital lease payable General obligation bonds payable Total general long -term debt payable $ 21,767, 924 200,000 47,847,076 8,740,000 900,000 507,272 37,441,962 200,000 47,743, 038 0 1,345,000 485,923 $ 79,962,272 87,215,923 507,272 485,923 650,000 0 78,805,000 86,730,000 $ 79,962,272 87,215,923 "'i4r Page 106 CITY OF EDINA, MINNESOTA Combined Schedule of Bonded Indebtedness December 31, 1996 Total bonded indebtedness (a) call date is 08/01/96 (b) call date is 02/01/96 (c) call date is 01/01/96 (d) call date is 02/01197 (e) call date is 01/02/96 Final Interest Issue maturity rate date date Bonded indebtedness: Tax Increment Bonds: Tax Increment Bonds, Series 1986A 5.20- 7.00% 08101/86 (a) 08/01/06 Tax Increment Bonds, Series 1986B 5.20- 7.00 08/01186 (a) 08/01/03 Tax Increment Bonds, Series 1988 6.40- 7.30 10/01/88 02/01/09 Tax Increment Taxable Bonds, Series 1988 9.20- 9.75 10/01/88 (b) 02/01/09 Tax Increment Bonds, Series 1989 6.80- 7.30 04101/89 02101/09 Tax Increment Taxable Bonds, Series 1989 10.00 -10.25 04/01/89 (b) 02/01/09 Tax Increment Refunding bonds, Series 1989 6.00-7.00 11/01/89 (c) 01/01/06 Tax 'Increment Bonds, Series 1990 6.70- 6.80 03/01/90 (d) 02101/05 Tax Increment Refunding Bonds, Series 1992B 4.90- 6.00 11/01/92 02/01/09 Tax Increment Refunding Bonds, Series 1993A 4.25- 5.10 05/01/93 02/01/06 Tax Increment Refunding Taxable Bonds, Series 1996A 5.85-6.25 03/01/96 02/01/09 General Obligation Bonds: General Obligation Park & Rec Bonds, Series 1996B 4.25 -5.75 08/01/96 08/01/17 Improvement Bonds: Improvement Bonds of 1986 4.50- 6.60 08/01/86 08/01/96; Improvement Refunding Bonds, Series 1992E 4.00- 5.20 11/01/92 02101/01 Revenue Bonds: Golf Course Bonds of 1985 6.25- 8.70 09101/85 (e) 01/02/00 Recreation Bonds of 1988 6.10- 7.30 10/01/88 01/01/09 Recreation Bonds of 1989 6.75- 7.30 04/01/89 01/01/09 Recreation Bonds, Series 1992A 4.00- 6.05 11/01/92 01/01/13 Recreation Refunding Bonds, Series 1992C 4.40- 6.00 11/01/92 01/01/09 Utility Refunding Bond, Series 1992D 3.80- 4.90 11/01/92 02/01/99 Total bonded indebtedness (a) call date is 08/01/96 (b) call date is 02/01/96 (c) call date is 01/01/96 (d) call date is 02/01197 (e) call date is 01/02/96 Page 107 Exhibit 1 1996 Percent Indebtedness paid by tax Authorized Due in 1997 levies and issued Redeemed Outstanding Principal Interest None $ 4,000,000 4,000,000 0 0 0 None 2,000,000 2,000,000 0 0 0 None 10,175,000 325,000 9,850,000 175,000 700,363 None 5,100,000 5,100,000 0 0 0 None 8,425,000 300,000 8,125,000 125,000 583,050 None 5,300,000 5,300,000 0 0 0 None 12,970,000 12,970,000 0 0 0 None 3,080,000 0 3,080,000 3,080,000 103,598 None 17,930,000 0 17,930,000 0 1,025,405 None 19,580,000 0 19,580,000 1,635,000 905,904 None 11,250,000 0 11,250,000 0 682,550 99,810,000 29,995,000 69,815,000 5,015,000 4,000,869 None 8,090,000 0 8,090,000 0 429,000 None 2,500,000 2,500,000 0 0 0 None 1,095,000 195,000 900,000 185,000 39,425 3,595,000 2,695,000 900,000 185,000 39,425 None 1,200,000 1,200,000 0 0 0 None 2,470,000 125,000 2,345,000 25,000 167,525 None 2,100,000 360,000 1,740,000 85,000 122,090 None 3,975,000 45,000 3,930,000 70,000 224,135 None 4,650,000 0 4,650,000 115,000 254,798 None 1,925,000 715,000 1,210,000 390,000 47,960 16,320,000 2,445,000 13,875,000 685,000 816,508 $ 127,815,000 35,135,000 92,680,000 5,885,000 5,285,802 Page 108 Exhibit 2 CITY OF EDINA, MINNESOTA Schedule of Changes in Bonded Indebtedness Year ended December 31, 1996 Balance Balance January 1 Issued Redeemed December 31 Tax Increment Bonds $ 85,385,000 11,250,000 26,820,000 69,815,000 General Obligation Bonds 0 8,090,000 0 8,090,000 Improvement Bonds 1,345,000 0 445,000 900,000 Revenue Bonds 15,045;000 0 1,170,000 13;875,000 $ 101,775,000 19,340,000 28,435,000 92,580,000 Page 109 Exhibit 3 CITY OF EDINA, MINNESOTA Schedule of Bonds Payable December 31, 1996 Issue Interest Maturity Principal date rate date amount Tax Increment Bonds: $10,175,000 Tax Increment Bonds, Series 1988 10/1/88 $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 9,850,000 Bonds maturing in the years 1999 through 2009 will be called on February 1, 1998. $8,425,000 Tax Increment Bonds Series 1989 4/1/89 $125,000. 6.90 211/97 125,000 $200,000 - $1,500,000 per year 6.95 -7.30 02/01/98 -09 8,000,000 Bonds maturing in the years 1999 through 2009 will be called on February 1, 1998. $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 All bonds will be called on February 1, 1997. $17,930,000 Tax Increment Refunding Bond, Series 1992B 11/1/92 $595,000. 4.90% 2/1/99 $735,000. 5.00 212100 $790,000. 5.20 2/1/01 $1,125,000. 5.40 2/1/02 $1,265,000. 5.50 2/1/03 $1,410,000. 5.60 2/1104 $1,470,000. 5.70 2/1/05 $1,635,000. 5.80 2/1/06 $2,490,000. 5.90 2/1/07 $3,090,000. 5.95 2/1/08 $3,325,000. 6.00 2/1/09 8,125,000 3,080,000 595,000 735,000 790,000 1,125,000 1,265,000 1,410,000 1,470,000 1,635,000 2,490,000 3,090,000 3,325,000 17,930,000 (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Issue Interest Maturity date rate date $19,580,000 Tax Increment Refunding Bond, Series 1993A $1,635,000. $1,625,000. $1,635,000. $1,610,000. $1,680,000. $2,4151000. $2,455,000. $2,230,000. $2,555,000. $1,740,000. $11,250,000 Tax Increment Taxable Refunding Bond, Series 1996A $500,000 $625,000 $650,000 $700,000 $800,000 $900,000 $900,000 $1,000,000 $1,475,000 $1,800,000 $1,900,000 Total improvement bonds 5/1/93 Page 110 Exhibit 3, Cont. Principal amount 4.25 2/1/97 1,635,000 4.40 2/1/98 1,625,000 4.40 2/1/99 1,6351000 4.60 2/2/00 1,610,000 4.75 2/1101 1,630,000 4.90 2/11/02 2,4 15,000 5.00 2/1/03 2,455,000 5.10 2/1/04 2,230,000 5.10 2/1/05 2,555,000 5.10 2/1/06 1,740,000 19,580,000 3/1/96 5.85 2/1/99 500;000:::.; 5.85 2/1/00 625,000 ;. 5.85 2/1/01 650;000' 5.85 2j1 /02 700,000 5.85 2/1/03 800,000 6.00 2/1/04 900,000 6.10 2/1/05 900,000 6.10 2/1/06 1,000,000 6.15 211/07 1,475,000 6.20 2/1/08 1,800,000 6.25 2/1/09 1,900,000 11,250,000 69,815,000 (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued General Obligation Bonds: $8,090,000 General Obligation Park & Rec Bond, Series 1996B $265,000 $275,000 $300,000 $300,600 $325,000 $325,000 $350,000 $375,000 $375,000 $400,000 $425,000 $450,000 $475,000 $500,000 $525;000 $550;000 $600;000 $625,000 $650,000 Total General Obligation Bonds Improvement Bonds: $1,095,000 Improvement Refunding Bonds, Series 1992E $185,000. $185,000. $180,000. $180,000. $170,000. Total Improvement Bonds Page 111 Exhibit 3, Cont. Issue Interest Maturity Principal date rate date amount 4.90 2/3/99 8/1/96 5.00 2/5/00 4.25 2/1/99 265,000 4.40 2/1/00 275,000 4.50 2/1/01 300,000 4.65 2/1/02 300;000 4.80 211/03 325,000 4.90 211/04 325,000 5.00 2/1/05 350,000 5.10 2/1/06 375,000 5.20 2/1/07 375,000 5.30 2/1/08 400,000 5.40 2/1/09 425,000 5.45 2/1/10 450000 5.50 2/1/11 475,000 5.55 2/1/12 500000 5.60 2/1/13 525,000 5.65 2/1/14 550,000 5.70 2/1/15 600,000 5.75 2/1/16 625,000 5.75 2/1/17 650,000 11/1/92 8,090,000 4.40 2/1/97 185,000 4.70 2/2/98 185,000 4.90 2/3/99 180,000 5.00 2/5/00 180,000 5.20 2/5/01 170,000 Revenue Bonds: $2,470,000 Recreational Facility Bonds, Series 1988 10/1/88 $25,000 per year 6.50 -6.60 01/01/96 -97 $175,000 - $325,000 per year 6.70 -7.30 01/01/98 -09 Bonds maturing in the years 1999 through 2009 will be called on January 1, 1998 900,000 25,000 2,320,000 2,345,000 (Continued) $2,100,000 Recreational Facility Bonds, Series 1989 $85,000. $95,000 - $195,000 per year CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Bonds, Series 1992A Issue Interest Maturity date rate date 1/1/97 4/1/89 4.70 6.90 1/11/97 6.95 -7.30 01/01/98-09 Bonds maturing in the years 1999 through 2009 will be called on January 1, 1998. $3,975,000 Recreational Facility Bonds, Series 1992A 11/1/92 $70,600. 4.40 1/1/97 $105,000. 4.70 1/1/98 $105,000. 4.90 1/11/99 $130,000. 5:00 1/2/00 $135,000. 5.20 1/1/01 $170,000. 5.40 1/1/02 $200,000. 5.50 1/1/03 $235,000. 5.60 1/1/04 $250,000. 5.70 1/1/05 $260,000. 5.80 1/1/06 $275,000. 5.90 1/1/07 $285,000. 5.95 1/1/08 $305,000. 6.00 1/1/09 $320,000. 6.00 1/1/10 $340,000. 6.05 1/1/11 $360,000. 6.05 1/1/12 $385,000. 6.05. 1/1/13 Page 112 Exhibit 3, Cont. Principal amount $ 85,000 1,655,000 1,740,000 70,000 105,000 105,000 130,000 135,000 170,000 200,000 235,000 250,000 260,000 275,060 285,000 305,000 320,000 340,000 360,000 385,000 3,930,000 (Continued) $4,650,000 Recreational Facility Refunding Bonds, Series 1992C $115,000. $160,000. $325,000. $320,000. $335,000. $360,000. $365,000. $380,000. $410,000. $435,000. $445,000. $495,000. $505,000. $1,925,000 Utility Revenue Refunding Bonds, Series 1992D $390,000. $400,000. $420,000. Total revenue bonds Total bonds payable CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Issue Interest date rate 11/1/02 11/1/92 4.40% 4.70 4.90 5.00 5.20 5.40 5.50 5.60 5.70 5.80 5.90 5.95 6.00 4.40 4.70 4.90 Page 113 Exhibit 3, Cont. • Maturity Principal date amount 1/11/97 $ 115,000 1/11/98 160,000 1/11/99 325,000 1/2/00 320,000 1/11/01 335,000 1/11/02 360,000 1/11/03 365,000 1/11/04 380;000 1/11/05 410,000 1/11/06 435,000 1/11/07 445,000 1/1/08 495,000 1/11/09 505,000 4,650,000 2/11/97 390,000 2/11/98 400,000 2/11/99 420,000 1,210,000 13,875,000 $ 92,680,000 Exhibit 4 CITY OF EDINA, MINNESOTA December 31, 1996 Year Tax Increment Bonds General Obligation Bonds Improvement Bonds Revenue Bonds Ended Principal Interest Principal Interest Principal Interest Principal Interest 1997 5,015,000 4,000,869 0 429,000 185,000 39,425 685,000 816,508 1998 19,300,000 3,801,366 0 429,000 185,000 31,008 4,640,000 780,334 1999 2,730,000 2,443,055 265,000 423,369 180,000 22,250 850,000 462,163 2000 2,970,000 2,304,809 275,000 411,688 180,000 13,340 450,000 430,088 2001 3,120,000 2,151,670 300,000 398,888 170,000 4,420 470,000 406,618 2002 4,240,000 1,962,200 300,000 385,163 0 0 530,000 380,088 2003 4,520,000 1,732,620 325,000 370,388 0 0 565,000 350,240 2004 4,540,000 1,489,713 325,000 354,625 0 0 615;000 317,483 2005 4,925,000 1,231,870 350,000 337,913 0 0 660,000 281,453 2006 4,375,000 975,088 375,000 319,600 0 0 695,000 242,488 2007 3,965,000 733,253 375,000 300,288 0 0 720,000 201,093 2008 4,890,000 465,978 400,000 279,938 0 0 780,000 156,648 2009 5,225,000 159,125 425,000 257,863 0 0 810,000 109,143 2010 0 0 450,000 234,125 0 0 320,000 75,243 2011 0 0 475,000 208,800 0 0 340,000 55,358 2012 0 0 500,000 181,863 0 0 360,000 34,183 2013 0 0 525,000 153,288 0 0 385,000 11,646 2014 0 0 550,000 123,050 0 0 0 0 2015 0 0 600,000 90,413 0 0 0 0 2016 0 0 .625,000 55,344 0 0 0 0 2017 0 0 650,000 18,688 0 0 0 0 $ 69,815,000 23,451,614 8,090,000 5,763,288 900,000 110,443 13,875,000 5,110,770 -U 0) m .N Page 115 Exhibit 5 CITY OF EDINA, MINNESOTA Assessed Valuation, Tax Levies and Mill Rates (shown by year of tax collectibility) 1993 1994 1995 1996 1997 Assessed valuation /tax capacity $ 84,393,406 82,244,215 84,055,819 85,775,887 91,586,990 Increment valuation (7,391,826) (6,207,276) (5,162,771) (4,848,313) (5,517,147) Contribution to fiscal disparities pool (10,366,571) (10,289,650) (8,042,316) (8,442,482) (8,385,640) Received from fiscal disparities pool 2,641,657 2,511,902 2,214,875 2,301,627 2,402,957 Taxable valuation $ 69,276,666 68,259,191 73,065,607 74,786,719 80,087,160 Tax levies: General Fund $ 10,485,115 10,927,551 11,390,898 12,178,440 12,531,244 Mill rates: General Fund 15.092 16.032 15.577 16.331 15.626 Page 116 Peat Marwick ALP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 t 9 Independent Auditors' Report on Schedule of Federal, financial Assistance Honorable Mayor and Members of the,City Council City of Edina, Minnesota: Exhibit 6 We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1996, and have issued our report thereon dated. April 4, 1997. 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. e,low6 dq�1 %4AId,a /Z?V April 4, 1997 [17T Member rm of KPMG International CITY OF EDINA, MINNESOTA Schedule of Federal Financial Assistance Year ended December 31, 1996 Federal Federal grantor /pass- through CFDA Pass - through grantor /program title number grantor's number U.S. Department of HUD: Passed through Hennepin County-- Community Development Block Grant* 14.218 B88UC270001 $ Federal Emergency Management Agency: Passed through State of MN State and Local Warning Grant Total * Selected non -major program Accrued/ Program revenue at or award December 31, amount 1995 Exhibit 7 Accrued/ revenue at Disbursements December 31, Receipts or expenditures 1996 189,665 39,541 116,794 210,590 133,337 83.503 8,000 0 8,000 8,000 0 $ 197,665 39,541 124,794 218,590 133,337 d m "4Peat Marwick ALP Page 118 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 8 Independent Auditors' Report on Compliance with General Requirements Applicable to Federal Financial Assistance 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, 1996, and have issued our report thereon dated April 4, 1997. 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 Assistance, for the year ended December 31, 1996: • Political Activity; • Davis -Bacon Act; • Civil rights; • Cash management; • Relocation assistance and real property acquisition; • Federal financial reports; • Allowable costs /cost principles; • Drug -Free Workplace Act; • 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 in scope 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 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. /f VA40: �.trf � LLp April 4 1997 1IRn Member temati KPMG In Peat Marwick LLP Page 119 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 9 Independent Auditors' Report on Compliance with Specific Requirements Applicable, To.Nonmajor Federal Financial Assistance Program Transactions 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, 1996, and have issued our report thereon dated April 4 1997. 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, 1996. 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 requirements, 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 state agencies. However, this report is a matter of public record, and its distribution is not limited. April 4 1997 [ITE Member Firm of KPMG International Page 120 k"Peat Marwick ALP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 10 Independent Auditors' Report onZompliance:.,:.;:.. Based on. an Audit of General PurposeFinancial Statements Performed in Accordance with Government 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, 1996, and have issued our report thereon dated April 4, 1997. 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. 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. eAV 7"'44 April 4, 1997 [IFIFIFI Member Firm of KPMG International kw�iPeat' Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Page 121 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, 1996 and have issued our report thereon dated April 4, 1997. We conducted our audit in accordance with generally accepted auditing standards; Govemment 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 Govemments. 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, 1996, 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 4, 1997. 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. mber Firm o FIFT111MG f International VFPV�IG� Peat Marwick LLP Page 122 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 acquisition - 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., and /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, 1996, 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 ccompanying Schedules °of Federal Financial Assistance. Our procedures were less in scope than .would` b`e ,necessary, to`' render and opinion on these internal control structure policies `and, procedures. Accordingly, we do not,express such an opinion. YEP�G� Peat Marwick LAP Page 123 Exhibit 11, Cont. Our consideration of the internal control structure policies and procedures used in administering 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 reportable 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 4, 1997. 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. April 4 1997 nPiPeat Marwick LLP Page 124 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 12 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 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, 1996, and have issued our report thereon dated April 4 1997. 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. 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, 1996, we obtained an understanding of the internal control structure. 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 on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Member Firm of KPMG International Pwl(a� Peat Marwick LLP page 125 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 or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period 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 4, 1997. 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. *Ift4� 40.c `IV44� '-/'L/V April 4, 1997 ;6Wk Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report on Minnesota Legal Compliance- Honorable Mayor and Members of the City Council City of Edina, Minnesota: Page 126 Exhibit 13 We have audited the general purpose financial statements of the City of Edina, Minnesota, as of and for the year ended December 31, 1996, and have issued our report thereon dated April 4, 1997. We conducted our audit in accordance with generally accepted auditing standards and the provisions of the Minnesota Legal Compliance Audit Guide for Local Govemment, 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 Govemment 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 test indicate that, for the items tested, the City complied with the material terms and conditions of applicable legal provisions, except as described in the schedule of findings on legal compliance. 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 4, 1997 OITFIK-P-M-G Internber Flrof eUOnal CITY OF EDINA, MINNESOTA Schedule of Findings on Legal Compliance Year ended December 31, 1996 Finding Page 127 Exhibit 14 MN Stat. Sec. 118A.03 requires the City to obtain a bond or collateral which, when computed at its market value, shall be at least ten percent more than the amount of the deposit less deposit insurance. MN Stat. Sec. 118A.03 subd. 2 describes the allowable types of collateral as certain U.S. government treasury, notes, bonds, and other instruments. During our audit, we noted one security, in the amount of $1,000,000, pledged for collateral was not an allowable type as defined by the statute. Management's Response The City agrees with the finding. The bank with which the collateral in question is held has two small city accounts which balances seldom exceed the $100,000 coverage under the FDIC. Currently, these balances are fully covered by the FDIC. Before the FDIC coverage is exceeded again, the collateral will be an allowable type as defined by state statute. Finding MN Stat. Sec. 471.345 requires the City to obtain sealed bids or direct negotiation of two quotations, whenever possible, for contracts from $10,000 to $25,000. During our audit, we noted the City did not obtain sealed bids or direct negotiation of two quotations for the contract to construct the Teaching Building at the Braemer Golf Course. The cost of the Teaching Building was approximately $20,000. Management's Response The City agrees with the finding. The Golf Course decided to build the building "in house" in attempt to hold down costs. The project for a number of reasons grew in size exceeding the original parameters and was not intended to exceed the $10,000 limit. Golf Course personnel will monitor these projects more closely in the future. STATISTICAL SECTION Table 1 CITY OF EDINA, MINNESOTA General Governmental Expenditures by Function (a) Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. d m J N co Unallocated Fiscal General Public Public general Capital Debt year government safety works Parks expenditures Other outlay service Total 1987$ 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 1996 2,201,312 7,440,601 3,290,742 1,919,759 251,215 5,847,706 970,882 6,281,475 28,203,692 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. d m J N co CITY OF EDINA, MINNESOTA General Governmental Revenues by Source (a) Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. Table 2 Interest on funds Charges held with Licenses Fiscal for Special Franchise and Inter - year Taxes assessments Fee permits governmental 1987 $ 8,486,440 1,787,962 58,683 710,282 3,010,203 1988 9,853,560 1,500,050 48,528 623,760 2,425,720 1989 11,050,785 936,026 49,969 893,191 3,548,522 1990 12,968,717 936,042 96,715 874,298 572,262 1991 14,425,200 980,689 133,680 850,897 580,561 1992 15,935,816 1,563,993 168,122 820,007 1,000,395 1993 17,505,272 991,394 260,039 1,037,783 1,749,631 1994 17,637,458 1,087,831 206,261 947,122 1,807,826 1995 15,534,902 858,897 209,519 1,070,352 5,693,802 1996 16,089,705 969,468 224,489 1,382,427 3,928,352 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. Table 2 Interest on funds Charges held with Sales and for Fines and Interest on fiscal rental of services forfeitures Investments agent property Miscellaneous Totals 652,389 515,172 785,228 0 152,495 182,109 16,340,963 740,708 532,257 533,647 0 127,846 130,766 16,516,842 873,549 467,957 1,737,726 0 151,180 1,613,999 21,322,904 1,235,812 494,009 1,289,470 0 133,809 2,432,752 21,033,886 1,287,524 437,433 875,320 .0 124,149 437,429 20,132,882 1,360,233 471,038 424,622 0 100,000 3,107,110 24,951,336 1,167,446 350,582 431,976 1,443,530 100,765 205,432 25,243,850 1,251,603 322,992 591,985 11,727,103 174,970 1,016,605 26,771,756 1,510,470 545,998 411,345 1,742,621 68,871 591,318 28,238,093 1,621,635 456,589 950,129 1,175,976 108,111 292,018 27,198,899 m co M J N (O Fiscal Total tax year levy 1987 $ 8,045,584 1988 8,569,599 1989 8,996,391 1990 9,992,692 1991 10,384,072 1992 10,182,324 1993 10,485,115 1994 10,927,551 1995 11,390,898 1996 12,178,440 Current tax collections 7,904,551 8,463,929 8,764,316 9,752,024 10,129,419 9,887,842 9,989,612 10,691,572 11,198,647 12,026,177 CITY OF EDINA, MINNESOTA Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Percent of total tax levy collected 98.25% 98.77% 97.42% 97.59% 97.55% 97.11% 95.27% 97.84% 98.31% 98.75% Table 3 ID to w 0 Percent Percent of Adjustments/ of total tax outstanding Delinquent collections Outstanding delinquent tax Total tax to total delinquent taxes to collections collections tax levy taxes total tax levy 61,041 7,965,592 99.01% 189,063 2.35% 71,756 8,535,685 99.60% 182,013 2.12% 68,377 .8,832,693 98.18% 198,204 2.20% 83,684 9,835,708 98.43% 158,558 1.59% 38,558 10,167,977 97.92% 241,915 2.33% 126,956 10,014,798 98.35% 274,437 2.70% (2,977) 9,986,635 95.25% 204,153 1.95% 5,819 10,697,391 97.89% 154,482 1.41% (67,047) 11,131,600 97.72% 88,399 0.78% (262,279) 11,763,898 96.60% 36,198 0.30% ID to w 0 Page 131 Table 4 CITY OF EDINA, MINNESOTA Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Note: (a) In 1988, assessed value was replaced by tax capacity. Ratio of total Real property assessed value/ tax capacity to Assessment Assessed value/ Estimated total estimated year tax capacity market value market value 1987 $ 768,050,021. 2,807,510,000 27.36% 1988 (a) 100,735,332 3,061,404,810 3.29% 1989 87,055,570 3,212,261,700 2.71% 1990 90,320,919 3,388;087,700 2.67% 1991 87,214,668 3,496,892,900 2.49% 1992 83,480,350 3,568,897,100 134% 1993 81,413,953 3,607576,600 2.26% 1994 83,136,702 3,733,888',400 2.23% 1995 85,775,887 3,849,796;600 2.23% 1996 77,684,203 4,071,757,834 1.91% Note: (a) In 1988, assessed value was replaced by tax capacity. Page 132 Table 5 CITY OF EDINA, MINNESOTA Property Tax Rates -All Overlapping Governments (per $100 of assessed value) Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Note: (a) In 1989, mill rates were replaced by tax capacity rates. City of Edina Special Fiscal General Revenue School year Fund Funds Total District County Other Total 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 1996 16.331 - 16.331 62.268 37.270 7.494 123.363 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 auditors' report) d m w w Percentage Collection Percentage Collection of total Total of current of levy of prior Total collections outstanding Year Total levy year's levy collected year's levy collections to total levy assessments 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 1996 768,800 764,997 99.51% 16,636 781,633 101.67% 13,389 d m w w Table 7 CITY OF EDINA, MINNESOTA Ratio of Net General Bonded Debt to Assessed Valuerrax Capacity and Net Bonded Debt Per Capita Last Ten Fiscal Years (Unaudited - see accompanying auditors' 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. d m 8 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 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% 11325 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 1996 46,845 80,087 921680,000 25,429,215 67,250,785 83.97% 1,436 *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. d m 8 Page 135 Table 8 CITY OF EDINA, MINNESOTA Computation of Legal Debt Margin December 31, 1996 (Unaudited - see accompanying auditors' report) Estimated market value of taxable property $ 4,071,654,134 Debt limit -2.00% of total estimated market value 81,433,083 Amount of debt applicable to debt . limit: $ 92,680,000 Total bonded debt Less: Other deductions allowed by law: Tax increment bonds $ 69,815,000 Improvement bonds 900,000 Revenue bonds 13,875,000 Total deductions 84,590,000 Total amount of debt applicable to debt limit 8,090,000 Legal debt margin $ 73,343,083 Page 136 Table 9 CITY OF EDINA, MINNESOTA Computation of Overlapping Debt December 31, 1996 (Unaudited - see accompanying auditors' report) Percentage Amount applicable applicable Net debt to City of to City of Jurisdiction outstanding Edina Edina 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 Hennepin County Regional Parks $ 52,475,785 100.00% $ 52,475,785 60,904,428 7.96% 4,860,173 35,750,000 98.24% 35,120,800 51,978,911 7.16% 3,721,690 10,955,727 0.02% 2,191 106,070,184 1.37% 1,453,162 36,025,662 33.38% 12,025,366 12,760,297 0.01% 1,276 61,080,046 4.43% 2,705,846 11,615,904 10.86% 1,261,487 $ 113,627,776 Page 137 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 auditors' 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 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 5,378,815 7,873,815 28,708,856 27.43% 1996 1,400,000 4,881,475 6,281,475 28,203,816 22.27% Notes: (a) Includes General, Special Revenue, and Debt Service Funds Table-11 CITY OF EDINA, MINNESOTA Revenue Bond Coverage Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Net revenue *Before interest costs. M N M w Direct* available Gross operating for debt Debt service requirements Fiscal year revenue expenses service Principal Interest Total Coverage Utility Bond 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 5,583,502 815,762 250,000 175,245 425,245 192 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 7,591,331 6,766,288 825,043 345,000 78,182 423,182 195 1996 7,753,016 7,007,293 745,723 370,000 52,019 422,019 177 Recreational Facility Bonds 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 2,987,774 2,600,826 386,948 195,000 707,454 902,454 43 1994 3,446,755 31086,401 360,354 200,000 854,920 1,054,920 34 1995 3,824,627 3,262,948 561,679 0 839,244 839,244 67 1996 4,311,141 3,545,291 765,850 103,850 774,800 878,650 87 *Before interest costs. M N M w Table 12 CITY OF EDINA, MINNESOTA Property and Construction Values Last Ten Fiscal years (Unaudited - see accompanying auditors' report) *Assessor's market. T w co Commercial Residential construction construction Fiscal Number of Number of Property value* year permits Value permits Value Commercial Residential 1987 342 $ 19,797,541 551 30,6001000 621;601,700 2,1851908,300 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 1996 279 35,789,432 1,318 31,334,870 745,200,700 3.326,107,834 *Assessor's market. T w co CITY OF EDINA, MINNESOTA Principal Taxpayers December 31, 1996 (Unaudited - see accompanying auditors' report) Taxpayer Southdale Gabberts and Galleria Southdale Office Park Pentagon Office Park Southdale Medical Building National Car United Health Care Corporation Jerry's. Retail Center 7373 France Avenue South Durham'." Rembrandf.H6ritage Edinborough Office East York Plaza 6363 France Edina Towers Lincoln Drive Apartments General Motors Edinborough 7001 France Vernon Terrace Page 140 Table 13 1996 tax Type of Business. capacity Shopping center $ 7,158,198 Shopping center 1,560,320. Office building 1,513,400 Office building 1,219,000 Office building 800,952 Office Building 659,502 Office building 645,812 Retail & Office 407,666 Medical Office _ 397,021 Apartments 385,339 Senior Residence 368,563 Office building 342,240 Apartments 336,627 Medical Office 312,621 Apartments 283,162 Apartments 265,380 Office/Industrial 256,947 Apartments 252,104 Bank & Office 251,362 Senior Apartments 247,520 Page 141 Table 14 CITY OF EDINA, MINNESOTA Major Employers in the City December 31, 1996 (Unaudited - see accompanying auditors' report) Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic Development, August, 1996 Approximate Number Employer Product/Service of Employees Fairview Southdale Hospital Health Care 2,400 United Healthcare Corporation Health Care 1,200 National Interrent Car Leasing (Corporate Headquarters) 1,000 Independent School District 273 Education 850 Golden Valley Microwave Foods Manufacturing 650 Health Risk Management Inc. Pension, Health and Welfare Funds 552 Edina Realty Real Estate (Corporate Headquarters) 500 Dayton's Department Store 500 J.C. Penney Department Store 400 Norwest Funding Mortgage Bankers & Correspondents 358 Nash Finch Co. Groceries 350 Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic Development, August, 1996 Hennepin County Mpls. -St. Paul MSA State of Minnesota CITY OF EDINA, MINNESOTA Labor Force Data December 31, 1996 (Unaudited - see accompanying auditors' report) December 1996 Civilian Unemployment Labor Force Rate 647,933 2.1% 1,617,236 2.3 2,603,423 3.3 Page 142 Table 15 December 1995 Civilian Unemployment Labor Force Rate 643,234 1.9% 1,605,022 2.6. 2,588,203 3.6 Source: Minnesota Department of Economic Security. 1996 data is preliminary. ' CITY OF EDINA, MINNESOTA 1,600 Miscellaneous Statistics 1,007 December 31, 1996 (Unaudited - see accompanying auditors' 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: 14,025 Total streets (including state and county) 224 miles Sanitary sewer 186.22 miles Sewer connections 13,783 Fire protection: Number of stations 2 Number of employees (full time) 29 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 39 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 143 Table 16 (Continued) Page 144 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 1996 (estimated June 1996) 46,845 Page 145 Table 17 CITY OF EDINA, MINNESOTA Schedule of Sources and Uses of Public Funds for 50th 8 France -No. 1200, a Tax Increment Financing District (Districts 1200, 1201, 1203, and 1204 are pooled) (Unaudited - see accompanying auditors' report) December 31, 1996 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds. $ 2,200,000 5,280,000 5,274,658 0 5,342 Tax increments received 0 18,817,930 11,244,110 1,270,102 6,303,718 Real estate sales' 800,000 170,782 170,782 0 0 State aid 0 418,870 418,870 0 0 Special assessments 0 1,321,096 728,505 0 592,591 Parking permits _ 0 38,208 172,081 14,789 (148,662) Community develop- ment',- 0 214,828 186,064 0 28,764 Interest on invested funds 0 0 319,388 231,877 (551,265) Other 0 0 4,162 0 (4,162) Total sources of funds 3,000,000 26,261,714 18,518,620 1,516,768 6,226,3'`.t? Uses of funds: Land acquisition 0 647,551 647,539 0 12 Installation of public utilities and improvements 3,000,000 6,257,748 5,812,930 6,034 438,784 Bond payments Principal 0 5,280,000 2,200,000 0 3,080,000 Interest, 0 4,738,329 2,865,156 207,195 1,665,978_ Administrative costs 0 69,260 680,083 78,115 (688,938) Work orders 0 16,825 16,257 0 568 Contingencies 0 12,300 11,644 0 656 Interest 0 9,400 363,037 0 (353,637) Miscellaneous 0 7,100 56,886 5,209 (54,995) Total uses of funds 3,000,000 17,038,513 12,653,532 296,553 4,088,428 Funds remaining (or deficient) 0 9,223,201 5,865,088 1,220,215 2,137,898 Cost to authority Price paid by developer 'Real estate sales Liquor store site $ 128,064 105,002 Union oil site 134,506 65,780 $ 262,570 170,782 CITY OF EDINA, MINNESOTA Schedule of 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 auditors' report) December 31, 1.996 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 Page 146 Table 18 Cost to authority $ 8,350 192,915 453,740 1,027,277 $ 1,682,282 Price paid by develooer 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 22,477,862 2,713,892 59,808,246 598,005 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 46,179,319 2,713,892 59,326,789 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 6,675,000 705,000 14,090,000 0 17,000,000 15,309,740 918,106 772,154 194,700 2,466,200 2,061,366 52,518 352,316 0 21,894,254 15,397,695 0 6,496,559 0 0 767,852 0 (767,852) 9,763,182 80,501,326 51,158,878 1,675,624 27,666,824 (3,000,000) 27,718,674 (4,979,559) 1,038,268 31,659,965 Cost to authority $ 8,350 192,915 453,740 1,027,277 $ 1,682,282 Price paid by develooer 11,899 192,915 346,534 784,563 1,335,911 Page 147 Table 19 CITY OF EDINA, MINNESOTA Schedule of Sources and Uses of Public Funds for Grandview Area Redevelopment District -No. 1202,.a Tax Increment Financing District (Unaudited - see accompanying auditors' report) December 31, 1996 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds 4,500,000 4,500,000 1,971,603 0 2,528,397 Tax increments received 0 10,531,072 4,254;028 630,311 5,646,733 Interest on invested funds 0 0 77;974 0 (77,974) Other 0 0 6,731 0 (6,731) Total sources of funds 4,500,000 15,031,072 6,310,336 630,311 8,090,425 Uses of funds: Installation, of public utilities and improvements 4,310,000 4,310,000 2,41.1,820 786,072 1,112,108 Bond payments Principal 0 2,000,000 650,000 0 1,350,000. Interest 0 1,539,950 1,093,025 78,538 368,387 Administrative costs 190,000 190,000 411,307 97,020 (318,327) Total uses of funds 4,500,000 8,039,950 4,566,152 961,630 2,512,168 Funds remaining (or deficient) 0 6,991,122 1,744,184 (331,319) 5,578,257 Page 148 Table 20 CITY OF EDINA, MINNESOTA Schedule of 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 auditors' report) December 31, 1996 Uses of funds: Land acquisition 13,900,000 13,900,000 Accounted 0 (1,237,870) Site improvements or Original Amended for in Current Amount preparation costs budget budget prior years year remaining Sources of funds: Bond proceeds $ 41,400,000 41,400,000 26,688,323 0 14,711,677 Tax increments 38,000,000 38;000,000 15,233,120 2,084,290 20,682;590 received 80,000,000 80,000,000 5,566,713 1,339,101 73,094,186 Real estate sales' 5,000,000 5,000,000 4,785,972 164,661 49,367 Interest on invested funds 0 0 1,872,334 0 (1,872,334) Other 0 0 568,841 48,407 (617,248) . Total sources of funds 126,400,000 126,400,000 39,482,183 1,552,169 85,3651648 Uses of funds: Land acquisition 13,900,000 13,900,000 15,137,870 0 (1,237,870) Site improvements or preparation costs 26,677,000 26,677,000 7,499,676 500,245 18,677,079 Bond payments Principal 41,400,000 41,400,000 500,000 250,000 40,650,000 Interest 38,000,000 38;000,000 15,233,120 2,084,290 20,682;590 Administrative costs 1,140,800 1,140,800 1,109,705 82,264 (51,169) Total uses of funds 121,117,800 121,117,800 39,480,371 2,916,799 78,720,630 -: Funds remaining (or deficient) 5,282,200 5,282,200 1,812 (1,364,630) 6,645,018 Cost to authority Price paid by developer *Real estate sales Retail and theater site $ 3,213,720 3,213,720 Medical office site 815,092 815,092 Office site 757,160 757,160 $ 4,785,972 4,785,972 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 Transit equipment Transit improvement Capitalized interest Debt service Administrative costs Total uses of funds Funds remaining (or deficient) Page 149 Table 21 CITY OF EDINA, MINNESOTA Schedule of 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 auditors' report) December 31, 1996 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ 9,400,000 9,400,000 0 0 9,400,000 22,657,749 22,657,749 5,432,925 (1,755,648) 18,980,472 -0 0 418,723 274,324 (693,047) 0 0 0 0 0 32,057,749 32,057,749 5,851,648 (1,481,324) 27,687,425 50,000 50,000 0 0 50,000 5,800,000 5,800,000 188,720 0 5,611,280 450,000 450,000 0 0 450,000 1,100,000 1,100,000 0 0 1,100,000 500,000 500,000 0 0 500,000 22,657,749 22,657,749 0 0 22,657,749 500,000 500,000 0 526 499,474 31,057,749 31,057,749 188,720 526 30,868,503 1,000,000 1,000,000 5,662,928 (1,481,850) (3,181,078) CITY OF EDINA, MINNESOTA Schedule of Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District (Unaudited - see accompanying auditors' report) December 31, 1996 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) Page 150 Table 22 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ . 1,911,000 1,911,000 2,177,855 2,177,855 0 0 0 0 4,088,855 4,088,855 . 0 0 1,911,000 118,881 144,204 1,914,770 0 0 0 0 0 0 118,881 144,204 3,825,770 529,400 529,400 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 5,000 5,496 585,504 4,088,855 4,088,855 94,468 5,496 3,988,891 0 0 24,413 138,708 (163,121) 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 w9tiN�1r� o e m • , ~�bHPOMtE� April 26, 1996 To the Honorable Mayor and Members of the City Council City of Edina, Minnesota: Page 2 City of Edina 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 4�91N��rr1, o Page 4 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: 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. 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 209,519 0.74% 3,258 Licenses and permits 1,070,352 3.79% 123,230 Intergovernmental 5,693,802 20.14% 3,885,976 Charges afor services 1,510,470 5.34% 258,867 Fines and forfeitures 545,996 1.93% 223,004 Interest on investments 396,397 1.40% (195,588) Interest on funds held with fiscal agent 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 Total General government $ 2,069,527 Public safety 7,251,129 Public works 3,160,831 Parks 1,850,610 Unallocated general 309,152 Other 5,389,205 Capital outlay 804,587 Bond principal 2,495,000 Interest and fiscal charges 5,378,815 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) of total from 1994 7.2% $(27,994) 25.3% 476; 537 11.0% 174,938 6.4% 124,969 1.1% 128,563 18.8% 2,115,357 2.8% 104,136 8.7% 1,310,000 18.7% (769,651) 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 Pegg� P ,& bs Accountant FINANCIAL SECTION KPMGJ Peat Marwick LLP 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 ._ Klynveld Peat Marwick Goerdeler PA*G7 Peat Marwick ALP 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. eoo�vt�f d"i'l /Z,000 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 0 plan administrators (notes 2 and 7) 0 Cash and investments with fiscal agents 0 Receivables: 816,895 Accounts, 361,590 Interest 1,688 Special assessments 0 Metropolitian 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) U nreserved- undesignated 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 0 0 0 0 0 0 0 0 1,371,189 0 6,993,805 - 0 1;404,706 816,895 9,769,700 816,895 $ 12,895,365 932,263 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 37,641,962 91,669 0 0 0 15,513,934 37,641,962 15,605,603 40,590,181 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 43,519,121 7,63° 65,4702,118 87,215,923 281,133,419 284,656,072 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenditures and Changes in Fund Balance - All 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 Page 13 Governmental fund types Special Debt Capital General Revenue Service Projects $ 11,152,197 0 0 1,070,352 1,527,991 1,510,470 545,996 14,948 0 64,815 47,217 15,933,986 0 0 209,519 0 181,767 0 0 45,337 0 0 0 436,623 0 723,714 0 0 0 0 0 0 1,742,621 0 0 2,466,335 4,382,705 135,183 0 0 3,984,044 0 0 351,060 0 4,056 544,101 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 Operating transfers in Operating transfers out Parkland dedication Reserve for construction Total other financing sources (uses) 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 0 0 0 0 383,000 0 4,309,614 50,159 (420,159) 0 0 (4,309,614) 193,766 0 0 0 2,400 0 0 0 159,007 0 4,309,614 (4,259,455) 778,616 (4,379) (1,099,525) 63,691 8,991,084 821,274 38,741,487 15,541,912 $ 9,769,700 816,895 37,641,962 15,605,603 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) 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 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 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) (2) 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. 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 (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) 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 1 2 Market value Page 27 $ 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 $ 49,2481990 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 Balance January 1 Additions 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 Maturities Interest rates 1995-2009 4.90 - 10.25% 1995-2001 4.00 - 7.10 1995-2013 3.80 - 8.70 (Continued) Balance December 31, 1995 $ 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 19928, 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 December 31 Tax 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 $ 116.5949M 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 $ 85,385,000 Improvement bonds 1,345,000 Revenue bonds 15,045,000 Total deductions Legal debt margin $ 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 $ 250,007 Current tax capacity value 763,142 Captured tax capacity value: Retained by authority 513,135 Shared with other taxing districts 0 General obligation tax increment bonds issued 3,370,600 Total loans incurred 0 Amounts redeemed 650,000 Outstanding bonds and loans at December 31, 1995 $ 2120.600 (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 $ 6.363 (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: utility Sales $ 0 Operating revenues 7,591,331 Depreciation 672,376 Operating income (loss) 826,583 Nonoperating revenues 0 (expenses), net (79,722) Operating transfers 0 in (out) 580,500 Net income (loss) 746,861 Property additions 532,018 Net working capital 3,997,502 Bonds payable 1,580,000 Total assets 25,250,764 Total retained earnings 53,714 (deficit) 23,415,871 Other Enterprise Funds 0 1,075,276 194,998 (791,313) 424,613 480,413 186,580 49,452 (1,057,515) 650,000 1,983,266 (729,505) (Continued) Total Enterprise Funds 6,004,554 11,939,010 1,536,055 914,616 (266,700) (13,000) 707,783 970,501 5,949,564 15,045,000 43,519,121 23,101,265 Goff Liquor course Arena 6,004,554 0 0 0 2,533,115 739,288 47,615 477,169 143,897 580,500 229,676 69,170 (177) (446,826) (164,588) (483,000) (117,583) 107,170 97,323 (334,733) 11,752 53,714 267,262 68,055 588,253 1,405,848 1,015,476 0 9,136,775 3,678,225 1,422,349 11,016,368 3,846,374 1,198,872 387,275 (1,171,248) Other Enterprise Funds 0 1,075,276 194,998 (791,313) 424,613 480,413 186,580 49,452 (1,057,515) 650,000 1,983,266 (729,505) (Continued) Total Enterprise Funds 6,004,554 11,939,010 1,536,055 914,616 (266,700) (13,000) 707,783 970,501 5,949,564 15,045,000 43,519,121 23,101,265 (9) CITY OF EDINA, MINNESOTA Due From To Other Funds Interfund receivables and payables as of December 31,1995 were as follows: Fund 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 Page 37 Interfund Interfund receivables payables $ 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 (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 U (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 $ 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 1994 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 2,124,983 7,178,427 3,326,169 1,890,018 277,670 0 2,069,527 7,251,129 3,160,831 1,850,610 309,152 (131,459) 21,130 21,169 Variance- 294,355 396,413 favorable Budget Actual (unfavorable) 11,080,898 11,152,197 71,299 921,710 1,070,352 148,642 1,512,120 1,527,991 15,871 1,305,000 1,510,470 205,470 425,000 545,996 120,996 95,500 126,980 31,480 15,340,228 15,933,986 593,758 2,124,983 7,178,427 3,326,169 1,890,018 277,670 0 2,069,527 7,251,129 3,160,831 1,850,610 309,152 (131,459) 21,130 21,169 369,807 294,355 396,413 395,767 88,452 93,296 15,673, 069 15,314,377 (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 31 619,609 383,000 (50,159) 193,766 (370,000) 2,400 159,007 778,616 8,991,084 $ 9,769,700 55,456 (72,702) 165,338 39,408 (31,482) 131,459 (39) 75,452 646 (4,844) 358,692 952,450 0 0 193,766 (370,000) 2,400 (173,834) 778,616 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 14,273,434 587,498 380,000 (117,000) 35,055 (120,000) 2,400 180,455 767,953 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 1995 Variance- favorable Budget Actual (unfavorable) $ 11,065,898 15,000 11,080,898 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 11,131,600 20,597 11,152,197 65,702 5,597 71,299 Page 44 1994 Actual 10,697,392 1,356 10,698,748 921,710 1,070,352 148,642 947,122 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 2,000 12,500 47,500 75,000 3,000 180,000 135,000 577,000 91,000 12,000 10,000 20,000 1,305,000 425,000 35,000 30,000 500 30,000 95,500 132,268 654 13,653 48,717 94,500 445 180,000 135,000 780,387 81,158 11,352 10,000 22,336 1,510,470 545,996 14,948 64,815 1,278 45,939 126,980 (7,732) (1,346) 1,153 1,217 19,500 (2,555) 0 0 203,387 (9,842) (648) 0 2,336 205,470 120,996 (20,052) 34,815 778 15,939 31,480 Total revenues $ 15,340,228 15,933,986 593,758 93,511 635 12,606 43,083 0 435 175,000 131,004 670,856 80,887 13,362 10,000 20,224 1,251,603 322,992 21,417 74,338 325 31,892 127,972 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 Variance- favorable Budget Actual (unfavorable) Page 45 rLtn Actual $ 27,450 27,448 2 27,255 3,000 3,394 (394) 3,470 1,300 742 558 633 31,308 31,308 0 30,876 63,058 62,892 166 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 RR7 Rn5 17,194 8,000 500 9,840 15 51e 249,870 58,309 813 69,636 R ant 5,289 (1,309) (263) 0 !7 Qd11 Ja /,VLU / /o 241,265 60,429 449 65,988 9,747 177 R7R 10,904 6,290 43,774 2,962 5,038 8,683 0 500 3,852 9,840 0 9,180 23,706 11,828 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) Civil defense: Personal services 17,797 1995 (1,026) 1994 Contractual services 6,420 5,681 Variance- 4,418 Commodities 1,090 215 favorable 1,272 Capital Outlay Budget Actual (unfavorable) Actual Assessing: 31,792 35,752 (3,960) 22,453 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 ariance- 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) Page 48 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 ariance- favorable n..�.._a w _i.._I i___r_ ..... u_1 w Supervision and overhead: Personal services $ 98,997 87,562 11,435 103,728 Contractual services 21,200 20,866 334 30,786 Commodities 1,000 87 913 1,312 Central services 372,504 372,504 0 346,680 Total supervision & overhead 493,701 481,019 12,682 482,506 Street maintenance: Personal services 671,777 625,320 46,457 580,789 Contractual services 60,000 73,802 (13,802) 55,730 Commodities 380,000 325,947 54,053 286,113 Central services 450,720 450,720 0 433,380 Total street maintenance 1,562,497 1,475,789 86,708 1,356,012 Street lighting: Personal services 22,000 16,244 5,756 21,836 Contractual Services 374,500 380,644 (6,144) 319,533 Commodities 14,500 5,797 8,703 12,758 Total street lighting 411,000 402,685 8,315 354,127 Street name signs: Personal services 32,000 32,687 (687) 24,740 Contractual Services 500 0 500 0 Commodities 27,500 33,801 (6,301) 32,526 Total street name signs 60,000 66,488 (6,488) 57,266 Traffic control: Personal services 21,000 25,304 (4,304) 26,428 Contractual services 61,000 49,130 11,870 54,858 Commodities 17,000 19,404 (2,404) 10,965 Total traffic control 99,000 93,838 5,162 92,251 Bridges: Personal services 10,000 7,868 2,132 8,882 Contractual services 500 0 500 0 Commodities 5,000 908 4,092 6,358 Total bridges 15,500 8,776 6,724 15,240 (Continued) Page 49 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) Recreation: Athletic activities 8,169 1995 1,438 1994 Skating and hockey 33,907 43,564 Variance- 36,217 Tennis instruction 12,180 11,271 favorable 8,137 Playground Budget Actual (unfavorable) Actual Retaining walls: 18,725 19,752 (1,027) 17,973 Personal services $ 6,000 319 5,681 450 Contractual services 1,000 463 537 0 Commodities 9,000 3,872 5,128 475 Total retaining walls 16,000 4,654 11,346 925 Sidewalks and ramps: Personal services 22,500 24,350 (1,850) 18,029 Contractual services 46,500 38,274 8,226 34,022 Commodities 23,700 10,353 13,347 16,969 Total sidewalks and ramps 92,700 72,977 19,723 69,020 Other expenditures: Capital outlay 346,686 351,793 (5,107) 266,411 Total public works 3,722,582 3,556,598 165,984 3,290,005 Parks: Administration: Personal services 331,694 301,119 30,575 288,804 Contractual services 18,060 18,754 (694) 24,894 Commodities 16,920 18,681 (1,761) 26,208 Central Services 100,680 100,680 0 96,300 Capital Outlay 2,771 286 2,485 0 Total administration 470,125 439,520 30,605 436,206 Recreation: Athletic activities 8,169 6,731 1,438 10,276 Skating and hockey 33,907 43,564 (9,657) 36,217 Tennis instruction 12,180 11,271 909 8,137 Playground 29,800 30,423 (623) 21,365 Senior citizens 18,725 19,752 (1,027) 17,973 Miscellaneous and special activities 25,008 24,368 640 17,749 Total recreation 127,789 136,109 (8,320) 111,717 (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) Maintenance: Supervision and overhead: Personal services Contractual services Commodities Central services Total supervision and overhead Mowing: Personal services Contractual services Commodities Total mowing Special turf care: Personal services Contractual services Commodities Total special turf care Forestry: Personal services Contractual services Commodities Total planting and trees Litter removal: Personal services Contractual services Commodities Total litter removal 1995 anance- favorable Budget Actual (unfavorable) Page 50 1aaa Anfi ial $ 89,762 72,557 17,205 64,730 3,100 1,305 1,795 1,837 0 368 (368) 146 368,571 368,571 0 332,220 461,433 442,801 18,632 398,933 82,500 79,598 2,902 80,424 0 100 (100) 399 1,122 3,141 (2,019) 1,983 83,622 82,839 783 82,806 136,800 157,533 (20,733) 131,503 10,400 2,475 7,925 6,545 31,620 26,668 4,952 23,599 178,820 186,676 (7,856) 161,647 76,000 84,252 (8,252) 92,198 36,300 15,764 20,536 50,101 17,340 7,710 9,630 7,384 129,640 107,726 21,914 149,683 11,300 12,263 (963) 11,547 6,000 4,512 1,488 5,121 7,000 3,705 3,295 2,905 24,300 20,480 3,820 19,573 (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) 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 Page 51 13,900 1995 1,779 1994 65,480 (19,480) anance- 9,447 (1,447) 67,900 favorable (19,148) 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 13,900 12,121 1,779 46,000 65,480 (19,480) 8,000 9,447 (1,447) 67,900 87,048 (19,148) 96,400 81,415 14,985 3,000 3,609 (609) 99,400 85,024 14,376 1 '30A 07a 1 275 267 19 608 85,681 1 070 d7n 17,781 12,168 Q a10 79,745 eaA oc,c�a 1 177 7M 93,010 (7,329) 72,459 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 52 264,960 285,427 77,500 84,920 418,500 437,536 206,220 206,220 in Ron 40 Rr.4 aoa,00u i,voo,v�+ (20,467) 245,937 (7,420) 84,375 (19,036) 413,762 0 184,140 (871) 10,718 /d7 70AI 04Q 047 4,677,371 1995 136,822 1994 4,677,371 4,672,008 anance- 4,381,164 0 (131,459) favorable (191,254) 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) 176,985 264,960 285,427 77,500 84,920 418,500 437,536 206,220 206,220 in Ron 40 Rr.4 aoa,00u i,voo,v�+ (20,467) 245,937 (7,420) 84,375 (19,036) 413,762 0 184,140 (871) 10,718 /d7 70AI 04Q 047 4,677,371 4,540,549 136,822 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. CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Balance Sheet December 31, 1995 (with comparative totals for December 31, 1994) Community Development Block Grant Assets Communications Page 54 Totals 1995 1994 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 Salaries Payable Due to other funds Due to other governments Compensated absences Total liabilities Fund balance: Unreserved - undesignated 3,275 8,920 12,195 12,477 145 579 724 625 36,066 65,687 101,753 78,429 20 0 20 0 0 676 676 2,979 39,506 75,862 115,368 94,510 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 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 Fund balance- December 31 $ 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. Page 57 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Balance Sheet December 31, 1995 (with comparative totals for December 31, 1994) General Improvement Debt Bond Totals Assets Service Redemption II 1995 1994 Cash $ 0 0 0 7,296 Cash with fiscal agent 37,051,695 0 37,051,695 38,351,489 Special assessments receivable: Delinquent 0 23,258 23,258 24,125 Current 0 439,501 439,501 415,234 Deferred 0 2,303,856 2,303,856 2,595,844 Bloomington 0 156,867 156,867 168,933 Accounts receivable 0 33,210 33,210 0 Due from other funds 200,000 380,922 580,922 394,819 Due from other govemments 0 872 872 1,273 Total assets $ 37,251,695 3,338,486 40,590,181 41,959,013 Liabilities and Fund Balance Liabilities Payables 0 0 0 0 Due to other govemments 0 181,604 181,604 182,323 Deferred revenue 0 2,766,615 2,766,615 3,035,203 Total liabilities 0 2,948,219 2,948,219 3,217,526 Fund balance: Reserved for debt service 37,251,695 390,267 37,641,962 38,741,487 Total fund balance 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. Page 60 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 Totals Assets Construction Edina Revolving 1995 1994 Cash $ 0 199,090 0 199,090 108,154 Investments 0 12,038,078 5,700,499 17,738,577 14,006,162 Accounts receivable 7,882 0 6,410 14,292 (1,134) Special assessments receivable: Delinquent 0 0 1,206 1,206 1,655 Deferred 0 0 126,705 126,705 145,653 Due from other governments 27,593 10,328 7,457 45,378 3,389 Due from other funds 0 2,188,146 962,493 3,150,639 6,596,375 Loan receivable 0 1,460,612 0 1,460,612 1,290,612 Accrued interest receivable 0 115,474 23,974 139,448 136,035 Total assets $ 35,475 16,011,728 6,828,744 22,875,947 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 Page 61 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) Housing and Redevelopment Authority of Totals Construction Edina Revolving 1995 1994 Revenues: Tax increments $ 0 4,382,705 0 4,382,705 6,938,710 Special assessments 0 0 135,183 135,183 175,072 Intergovernmental 3,984,044 0 0 3,984,044 135,617 Interest on investments 0 309,909 41,151 351,060 566,348 Rental of property 0 0 4,056 4,056 100,632 Other revenues 353,988 15,258 174,855 544,101 984,388 Total revenues 4,338,032 4,707,872 355,245 9,401,149 8,900,767 Expenditures: Current: Personal services 0 180,000 47,160 227,160 227,419 Professional fees 0 14,803 22,767 37,570 15,914 Other 0 438,043 22,709 460,752 192,350 Construction costs 3,763,023 13,463 576,035 4,352,521 2,600,327 Total expenditures 3,763,023 646,309 668,671 5,078,003 3,036,010 Excess (deficiency) of revenues over expenditures 575,009 4,061,563 (313,426) 4,323,146 5,864,757 Other financing sources (uses): Proceeds from sale of land 0 0 0 0 5,107 Operating transfers in (out): General debt service fund 0 (4,309,614) 0 (4,309,614) (4,510,560) General fund 0 0 50,159 50,159 237,000 Construction fund 0 0 0 0 (202,175) Revolving fund 0 0 0 0 202,175 Enterprise fund 0 0 0 0 (20,000) Total other financing sources (uses) 0 (4,309,614) 50,159 (4,259,455) (4,288,453) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 575,009 (248,051) (263,267) 63,691 1,576,304 Fund balance (deficit) - January 1 (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 U n reserved -u ndesignated Total retained earnings Total liabilities and fund equity Utilities Liquor Page 63 Swimming 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 $ 25,250,764 127,728 15,818 27,925 0 47,948 35,474 254,893 0 0 0 0 0 1,580,000 1,580,000 1,834,893 0 274,998 23,140,873 23,415,871 $ 25,250,764 2,094 0 0 0 0 0 247,399 558,597 0 811,730 610,619 0 1,422, 349 131,971 7,145 13,947 0 70,414 0 223,477 0 0 0 0 0 0 0 223,477 C07 0 1,198,872 1,198,872 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) 1,422,349 645,226 Page 64 Golf Gun Art Edinborough Totals Course Arena Range Center Park 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 0 0 10,000 0 0 0 750 0 750 750 12,776 3,500 0 0 0 16,276 15,017 10,491 5,040 0 0 0 15,531 12,600 36,000 324,000 0 0 90,000 450,000 490,000 9,136,775 3,678,225 0 0 0 15,045,000 15,390,000 9,196,042 4,010,765 0 750 90,000 15,527,557 15,918,367 10,629,093 5,017,622 9,145 58,259 1,272,832 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 0 (383,000) (with comparative totals for year ended December 31, 1994) Revolving fund 0 0 0 Swimming 0 Utilities Liquor Pool Sales and cost of sales: 0 0 Arena fund Sales $ 0 6,004,554 0 Cost of Sales 0 4,528,788 0 Gross profit 0 1,475,766 0 Operating revenues: 97,323 35,002 Add depreciation on contributed assets Charges for services 7,591,331 0 329,451 Total gross profit and operating revenues 7,591,331 1,475,766 329,451 Operating expenses: 1,101,549 (62,605) Retained earnings (deficit) - December 31 Disposal charges 3,359,464 0 0 Personal services 728,591 535,670 119,686 Contractual services 1,284,517 102,500 50,343 Commodities 348,868 31,617 11,593 Central services 370,932 177,864 9,432 Depreciation 672,376 47,615 65,915 Total operating expenses 6,764,748 895,266 256,969 Operating income (loss) 826,583 580,500 72,482 Nonoperating revenues (expenses): Interest on investments 0 0 0 Donations 0 0 0 Interest from fiscal agent 0 0 0 Interest and fiscal charges (78,182) 0 (37,125) Interest on lease payable 0 0 0 Gain (loss) on sale of fixed assets 0 0 0 Amortization of bond discount (1,540) 0 (355) Miscellaneous 0 (177) 0 Total nonoperating revenues (expenses) (79,722) (177) (37,480) Income (loss) before operating transfers 746,861 580,323 35,002 Operating transfers in (out): General fund 0 (383,000) 0 Revolving fund 0 0 0 Art center fund 0 (100,000) 0 Liquor store fund 0 0 0 Arena fund 0 0 0 Golf dome 0 0 0 Total operating transfers, net 0 (483,000) 0 Net income (loss) 746,861 97,323 35,002 Add depreciation on contributed assets 0 0 0 Increase (decrease) in retained earnings 746,861 97,323 35,002 Retained earnings (deficit) - January 1 22,669,010 1,101,549 (62,605) Retained earnings (deficit) - December 31 $ 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 Page 67 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) Swimming Utilities Liquor Pool Cash flows from operating activities: Operating income (loss) $ 826,583 580,500 72,482 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation expense 672,376 47,615 65,915 Changes in assets and liabilities: (Increase) in accounts receivable (485,680) (1,931) 0 (Increase)decrease in due from other governments 94,854 0 0 (Increase) decrease in inventory 552 (44,664) 0 (Increase) in prepaid expenses (288,506) 0 0 Increase (decrease) in accounts payable 42,977 13,734 3,979 Increase (decrease) in salaries payable 9,396 195 0 Increase (decrease) in compensated absences payable (1,179) 774 0 Increase (decrease) in due to other governments (113,672) 2,772 0 Increase (decrease) in accrued interest payable 287 0 (61) (Decrease) in contracts payable 0 0 0 Increase in deposits payable 0 0 0 Increase in deferred revenue 0 0 0 Total adjustments (68,595) 18,495 69,833 Net cash provided (used) by operating activities 757,988 598,995 142,315 Cash flows from noncapital financing activities: Miscellaneous 0 (177) 0 Donations 0 0 0 (Increase) decrease in due from other funds 148,569 (66,968) (20,295) Increase (decrease) in due to other funds 0 0 (67,575) Operating transfer in (out)— General Fund 0 (383,000) 0 Operating transfer in— Revolving Fund 0 0 0 Operating transfer in —Golf dome 0 0 0 Operating transfer (out) —Art center 0 (100,000) 0 Operating transfer in— Liquor Store Fund 0 0 0 Operating transfer (out) —Arena 0 0 0 Contributed capital 0 0 0 Net cash (used) provided for noncapiital financing activitie 148,569 (550,145) (87,870) 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 0 (532,018) 0 (345,000) 0 0 0 (78,182) (955,200) 0 (48,643) 0 (53,714) 0 0 0 0 0 0 (53,714) (4,864) 0 (17,320) 0 0 0 0 0 (37,125) (54,445) 0 0 0 0 0 48,643 8,504 0 Cash and equivalents, end of year $ 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 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 1995 $ 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 1994 $ 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 6,764,748 826,583 566,528 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 Cash and cash equivalents, end of year 1995 $ 826,583 672,376 (485,680) 94,854 552 (288,506) 42,977 9,396 (1,179) (113,672) 287 (68,595) 757,988 Page 72 1994 416,827 649,545 (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) (2,165,000) (547,894) (12,507) (97,597) (2,822,998) 0 6,642 0 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 1995 Page 75 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 CITY OF EDINA, MINNESOTA Liquor Fund Schedule of Operating Expenses Year ended December 31, 1995 (with comparative amounts for year ended December 31, 1994) Selling: Personal services Contractual services Direct promotion Commodities Total selling Occupancy: Personal services Contractual services: Professional services Burglar alarm Heat Laundry and rug service Light and power Maintenance, renting and cooling Repair and maintenance Rubbish hauling Telephone Water and sewer service Commodities Depreciation Total occupancy Administrative: Personal services Contractual services: Data processing Mileage Professional service Miscellaneous Commodities Central services Total administrative 50th Street Yorkdale Vernon Page 76 Totals 1995 1994 73,607 100,033 102,520 276,160 246,899 3,598 2,661 3,311 9,570 7,815 6,533 9,169 8,496 24,198 13,627 83,738 111,863 114,327 309,928 268,341 2,395 3,470 1,304 7,169 4,969 0 196 0 196 0 239 446 254 939 2,647 713 1,012 1,318 3,043 4,119 418 984 534 1,936 1,828 10,182 16,098 8,352 34,632 33,863 723 113 203 1,039 806 988 2,944 748 4,680 3,125 869 1,046 739 2,654 3,539 2,588 2,646 2,512 7,746 6,613 163 185 174 522 745 1,678 2,913 339 4,930 4,112 12,602 12,941 22,072 47,615 45,118 33,559 44,994 38,549 117,102 111,484 76,291 93,345 82,705 252,341 263,168 (483) (483) (483) (1,449) 970 0 1,965 0 1,965 1,950 7,230 11,300 11,892 30,422 24,265 1,897 878 1,830 4,605 2,248 911 1,068 509 2,488 804 40,008 73,320 64,536 177,864 166,480 125,854 181,393 160,989 468,236 459,885 $ 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 1995 Page 79 1994 $ 72,482 34,545 65,915 53,970 3,979 (896) (61) 0 69,833 53,074 142,315 87,619 (20,295) 0 (67,575) (27,870) (87,870) (27,870) (17,320) (22,564) (37,125) (37,185) (54,445) (59,749) 0 0 0 0 Cash and cash equivalents, end of year $ 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 eamings- 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 Page 82 1995 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 Page 83 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 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 $ 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 1994 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 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 1995 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 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 Retained earnings - December 31 1995 1994 $ 21,893 38,013 3,849 4,566 245 481 102 143 26,089 43,203 20,492 20,115 6,280 6,991 7,114 9,290 2,340 1,980 2,825 3,528 39,051 41,904 (12,962) 1,299 0 1,000 0 1,000 (12,962) 2,299 23,154 20,855 $ 10,192 23,154 Page 88 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 Page 89 1995 1994 $ (12,962) 1,299 2,825 3,528 (126) (2,883) (45) 125 (31) 51 2,623 821 (10,339) 2,120 0 1,000 8,663 (714) 8,663 286 (730) 0 (730) 0 (2,406) 2,406 2,406 0 $ 0 2,406 Page 90 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: Unreserved — undesignated 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 Total liabilities and retained earnings $ 236,514 319,758 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 earnings- 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 0 100 (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 V, 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 1994 $ 1,500 613 42,173 68,926 72,863 186,075 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 Page 94 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 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) 350,000 244,676 145,397 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) I 44,082 (705,257) 72,867 128,073 116,949 (577,184) (1,007,298) (430,114) Retained earnings (deficit) - December 31 $ (890,349) (1,007,298) 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. 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 Total investment in general fixed assets 1995 $ 27,769,302 19,599,311 725,847 8,983,591 7,325,444 1,068,623 $ 65,472,118 $ 65,472,118 1994 27,769,302 19,570,313 659,560 8,314,986 7,150,738 0 63,464,899 63,464,899 Page 99 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 $ 87,215,923 38,351,489 200,000 48,933,155 1,740,356 463,247 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 Interest rate Page 102 Final Issue maturity date date 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 Page 104 Exhibit 2 CITY OF EDINA, MINNESOTA Schedule of Changes in Bonded Indebtedness Year ended December 31, 1995 Balance Balance January 1 Issued Redeemed December 31 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 0 345,000 15,045,000 $ 104,615,000 0 2,840,000 101,775,000 Page 105 Exhibit 3 CITY OF EDINA, MINNESOTA Schedule of Bonds Payable December 31, 1995 Issue Interest Maturity Principal date rate 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) Page 106 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued $8,425,000 Tax Increment Bonds Series 1989 4/1/89 $75,000 6.90 2/1/96 75,000 $125,000 6.90 2/1/97 125,000 $200,000 41,500,000 per year 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) Issue Interest Maturity Principal date rate date amount $5,100,000 Taxable Tax Increment Bonds, Series 1988 10/1/88 $50,000 9.25 2/1/96 $ 50,000 $100,000 9.30 2/1/97 100,000 $125,000 9.35 2/1/98 125,000 $150,000 9.35 2/1/99 150,000 $225,000 per year 9.40 02/01/00 -01 450,000 $250,000 9.45 2/1/02 250,000 $300,000 9.45 2/1/03 300,000 $350,000 9.50 2/1/04 350,000 $375,000 9.55 2/1/05 375,000 $450,000 9.60 2/1/06 450,000 $650,000 9.65 2/1/07 650,000 $825,000 9.70 2/1/08 825,000 $900,000 9.75 2/1/09 900,000 4,975,000 $8,425,000 Tax Increment Bonds Series 1989 4/1/89 $75,000 6.90 2/1/96 75,000 $125,000 6.90 2/1/97 125,000 $200,000 41,500,000 per year 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) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued $5,300,000 Taxable Tax Increment Bonds, Series 1989 $50,000 $75,000 $125,000 $175,000 $225,000 $250,000 $275,000 $325,000 $375,000 per year $400,000 $700,000 $875,000 $950,000 $12,970,000 Tax Increment Refunding Bond, Series 1989 $1,055,000 - $1,080,000 per year Issue Interest Maturity date rate date 4/1/89 11/1/89 Page 107 Exhibit 3, Cont. Principal amount 10.00 2/1/96 $ 50,000 10.00 2/1/97 75,000 10.00 2/1/98 125,000 10.00 2/1/99 175,000 10.00 2/1/00 225,000 10.00 2/1/01 250,000 10.00 2/1/02 275,000 10.00 2/1/03 325,000 10.10 -10.20 02/01/04 -05 750,000 10.20 2/1/06 400,000 10.25 2/1/07 700,000 10.25 2/1/08 875,000 10.25 2/1/09 950,000 5,175,000 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% 211/99 $ 570,000 $735,000 5.00 211/00 735,000 $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 5.90 211/07 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 2/1/97 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 2/1/02 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 2/1/06 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) (Continued) Page 109 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Issue Interest Maturity Principal date rate date amount $1,095,000 Improvement 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 4150,000 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 - $195,000 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 1/1/99 105,000 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 1/1/11 340,000 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 4.00 211/96 370,000 $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) 1992 1993 1994 1995 1996 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 [--- -r- - -,- -rte Page 114 ,kP -A4GJ Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 6 Independent Auditors' Report on Supplementary Schedule of Federal Financial Assistance 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 If P/�JG�.ce� �' Lei° Exhibit 7 CITY OF EDINA, MINNESOTA Schedule of Federal Financial Assistance Year ended December 31, 1995 Federal Emergency Management Agency: Passed through State of MN State and Local Warning Grant 83.503 7,622 0 7,622 7,622 0 Total 212,176 31,027 183,544 193,057 40,540 * Selected non -major program v d m Accrued/ Accrued/ Federal Program revenue at revenue at Federal grantor /pass- through CFDA Pass - through or award December 31, Disbursements December 31, grantor /program title number grantor's number amount 1994 Receipts or expenditures 1995 U.S. Department of HUD: Passed through Hennepin County-- Commuity Development Block Grant* 14.218 B88UC270001 $ 204,554 31,027 175,922 185,435 40,540 Federal Emergency Management Agency: Passed through State of MN State and Local Warning Grant 83.503 7,622 0 7,622 7,622 0 Total 212,176 31,027 183,544 193,057 40,540 * Selected non -major program v d m __ - _ _1 Page 116 KPW -'Peat Marwick LAP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 8 Independent Auditors' Report on Compliance with General Requirements Applicable to Federal Financial Assistance 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 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; 0 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 Govemments. Our procedures were substantially less in scope 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 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. April 26, 1996 Member Firm of Klynveld Peat Marwick Goerdeler Page 117 PAC Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 9 Independent Auditors' Report on Compliance with Specific Requirments Applicable To Nonmajor Federal Financial Assistance Program Transactions 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. 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 Member Firm of _ _ ; Klynveld Peat Marwick Goerdeler G�Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street ` Minneapolis, MN 55402 Independent Auditors' Report on Compliance Based on an Audit of Gen'eralvOurpose, FinancialeStatements Performed in Accordance with Government Auditing 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 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. 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. L[P Member Firm of 111T11 Klynveld Peat Marwick Goerdeler WP_M___GTeat Marwick LLP 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 Klynveld Peat Marwick Goerdeler WNW Peat Marwick ALP 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. VNQM Peat Marwick LLP 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 assistancr: e 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. April 26, 1996 Page 122 �PG Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 12 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 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. 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 on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. NINE Member Firm of Klynveld Peat Marwick Goerdeler W%W Peat Marwick ALP 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 orrirregularities - n amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely'period 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. .'�w e4l'oey'o�-� zz t-4 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. Page 125 KI - W]Peat Marwick ALP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Exhibit 14 Independent Auditors' Report on Minnesota 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, 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 Govemment, 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 Govemment 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 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 ca M J N 0) 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 ca M J N 0) Fiscal Licenses Special year Taxes assessments 1986 $ 7,850,460 0 1987 8,486,440 1,787,962 1988 9,853,560 1,500,050 1989 11,050,785 936,026 1990 12,968,717 936,042 1991 14,425,200 980,689 1992 15,935,816 1,563,993 1993 17,505,272 991,394 1994 17,637,458 1,087,831 1995 15,534,902 858,897 CITY OF EDINA, MINNESOTA General Governmental Revenues by Source (a) Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. Table 2 Licenses Interest Charges Franchise and Inter- for Fee permits governmental services 0 695,898 2,027,833 772,920 58,683 710,282 •3,010,203 652,389 48,528 623,760 2,425,720 740,708 49,969 893,191 3,548,522 873,549 96,715 874,298 572,262 1,235,812 133,680 850,897 580,561 1,287,524 168,122 820,007 1,000,395 1,360,233 260,039 1,037,783 1,749,631 1,167,446 206,261 947,122 1,807,826 1,251,603 209,519 1,070,352 5,693,802 1,510,470 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. Table 2 co m N 4 Interest on funds held with Sales and Fines and Interest on fiscal rental of forfeitures investments agent property Miscellaneous Totals 401,203 1,594,460 0 135,871 58,865 13,537,510 515,172 785,228 0 152,495 182,109 16,340,963 532,257 533,647 0 127,846 130,766 16,516,842 467,957 1,737,726 0 151,180 1,613,999 21,322,904 494,009 1,289,470 0 133,809 2,432,752 21,033,886 437,433 875,320 0 124,149 437,429 20,132,882 471,038 424,622 0 100,000 3,107,110 24,951,336 350,582 431,976 1,443,530 100,765 205,432 25,243,850 322,992 570,568 1,727,103 100,632 1,112,360 26,771,756 545,996 396,397 1,742,621 4,056 701,240 28,268,252 co m N 4 Table 3 CITY OF EDINA, MINNESOTA Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) T d ca M N co 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% T d ca M N co Assessment year 1986 1987 1988 (a) 1989 1990 1991 1992 1993 1994 1995 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 Assessed value/ tax capacity $ 725,895,608 768,050,021 100,735,332 87,055,570 90,320,919 87,214,668 83,480,350 81,413,953 83,136,702 85,775,887 Estimated market value 2,610,642,350 2,807,510,000 3,061,404,810 3,212,261,700 3,388,087,700 3,496,892,900 3,568,897,100 3,607,576,600 3,733,888,400 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) v n� CD w Percentage Collection Percentage Collection of total Total of current of levy of prior Total collections outstanding Year Total levy year's 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 v n� CD 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. v m co CD 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. v m co CD 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 $ 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 0 Legal debt margin $ 76,995,932 CITY OF EDINA, MINNESOTA Computation of Overlapping Debt December 31, 1995 (Unaudited - see accompanying accountants' report) Net debt Jurisdiction outstanding 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 $ 58,509,016 74,413,095 35,825,348 48,708,676 11,194,694 93,113,198 34,789,522 14,459,275 89,625,527 1,400,000 16,048,246 Percentage applicable to City of Edina 100.00% 8.03% 98.29% 7.02% 0.02% 1.29% 33.47% 0.01% 4.25% 4.68% 0.92% Page 134 Table 9 Amount applicable to City of Edina $ 58,509,016 5,975,372 35,212,735 3,419,349 2,239 1,201,160 11,644,053 1,446 3,809,085 65,520 147,644 $ 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. Table 11 CITY OF EDINA, MINNESOTA Revenue Bond Coverage Last Ten Fiscal Years (Unaudited - see accompanying accountants' report) Net revenue a� ca co W rn Direct* available Gross operating for debt Debt service requirements Fiscal year revenue expenses service Principal Interest Total Coverage Utility Bond 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 a� ca co 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. n� CD w 4 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 Price paid W developer 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 Price paid W developer 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) December 31, 1995 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds $ 6,165,177 21,470,000 20,219,852 0 1,250,148 Tax increments received 0 85,000,000 20,047,358 2,430,504 62,522,138 Real estate sales' 598,005 1,750,000 1,335,911 0 414,089 Community develop- ment Block Grant 0 0 189,221 0 (189,221) Interest on invested funds 0 0 1,930,542 0 (1,930,542) Other 0 0 25,931 0 (25,931) Total sources of funds 6,763,182 108,220,000 43,748,815 2,430,504 62,040,681 Uses of funds: Land acquisition 6,682,998 15,278,569 10,479,127 0 4,799,442 Installation of public utilities and improvements 2,885,484 2,392,303 468,098 0 1,924,205 Bond payments Principal 0 21,470,000 6,300,000 375,000 14,795,000 Interest 0 17,000,000 14,364,565 945,175 1,690,260 Administrative costs 194,700 2,466,200 2,033,381 27,985 404,834 Site improvements or preparation costs 0 21,894,254 15,397,695 0 6,496,559 Parkland dedication fees 0 0 767,852 0 (767,852) Total uses of funds 9,763,182 80,501,326 49,810,718 1,348,160 29,342,448 Funds remaining (or deficient) (3,000,000) 27,718,674 (6,061,903) 1,082,344 32,698,233 Cost to authority Price paid by developer 'Real estate sales Retail site $ 8,350 11,899 Hotel site 192,915 192,915 Elderly site 453,740 346,534 Office site 1,027,277 784,563 $ 1,682,282 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 Uses of funds: Land acquisition 50,000 50,000 Accounted 0 50,000 Installation of public Original Amended for in Current Amount utilities and budget budget prior years year remaining Sources of funds: 5,800,000 5,800,000 188,720 0 5,611,280 Bond proceeds $ 9,400,000 9,400,000 0 0 9,400,000 Tax increments 1,100,000 1,100,000 0 0 1,100,000 received 22,657,749 22,657,749 5,080,718 352,207 17,224,824 Interest on invested 22,657,749 22,657,749 0 0 22,657,749 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 3( 7,687) 62,100 (24,413)