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HomeMy WebLinkAbout1997 Comprehensive Annual Financial Reporto e�� CITY OF EDINA, MINNESOTA 1997 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31,1997 CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report Year ended December 31, 1997 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 Independent Auditors' Report ..................................................................... ............................... 9 General Purpose Financial Statements: Combined Balance Sheet — All Fund Types and Account Groups .......... .............................11 Combined Statement of Revenues, Expenditures and Changes in Fund Balance — All Governmental Fund Types .................................... .............................13 Combined Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General and Special Revenue Fund Types .......... 15 Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types ................................. .............................17 Combined Statement of Cash Flows — All Proprietary Fund Types ........ .............................18 Notes to General Purpose Financial Statements ..................................... .............................19 Combining and Individual Fund and Account Group Financial Statements: General Fund: BalanceSheet ...................................................................................... ............................... 47 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual ................................................. ............................... 48 Schedule of Revenues — Budget and Actual ...................................... ............................... 49 Schedule of Expenditures — Budget and Actual ................................. ............................... 45 Schedule of Central Services Expenditures — Budget and Actual ..... ............................... 57 Special Revenue Funds: Combining Balance Sheet ................................................................... ............................... 59 Combining Statement of Revenues, Expenditures and Changes in FundBalance .................................................................................... ............................... 60 Debt Service Funds: Combining Balance Sheet ................................................................... ............................... 62 Combining Statement of Revenues, Expenditures and Changes in FundBalance ...................................................................................... .............................63 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Combining and Individual Fund and Account Group Financial Statements (Continued): Capital Project Funds: CombiningBalance Sheet ..................................................................... .............................65 Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) ...................................................................... ............................... 66 Enterprise Funds: CombiningBalance Sheet ................................................................... ............................... 68 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ....... 70 Combining Statement of Cash Flows .................................................. ............................... 72 Utilities Fund: BalanceSheet ............................................................................... ............................... 74 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 75 Statementof Cash Flows .............................................................. ............................... 77 Liquor Fund: BalanceSheet ............................................................................... ............................... 78 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 79 Statement of Cash Flows .............................................................. ............................... 80 Schedule of Operating Expenses .................................................. ............................... 81 Swimming Pool Fund: BalanceSheet ............................................................................... ............................... 82 Statement of Revenues, Expenses and Changes in Retained Earnings ................... 83 Statement of Cash Flows .............................................................. ............................... 84 Golf Course Fund BalanceSheet ............................................................................... ............................... 85 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 86 Statementof Cash Flows .............................................................. ............................... 87 Schedule of Operating Expenses .................................................. ............................... 88 Arena Fund: BalanceSheet ............................................................................... ............................... 89 Statement of Revenues, Expenses and Changes in Retained Earnings ................... 90 Statement of Cash Flows .............................................................. ............................... 91 Gun Range Fund: BalanceSheet ............................................................................... ............................... 92 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 93 Statement of Cash Flows .............................................................. ............................... 94 Art Center Fund: BalanceSheet ............................................................................... ............................... 95 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 96 Statementof Cash Flows .............................................................. ............................... 97 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 ............................................................................... ............................... 98 Statement of Revenues, Expenses and Changes in Retained Earnings ................... 99 Statement of Cash Flows ................................. ............................... ............................100 Trust and Agency Funds: Combining Balance Sheet ................................. ............................... ............................102 Deferred Compensation Expendable Trust Fund: BalanceSheet ................................ ............................... ............................103 Statement of Revenues, Expenses and Changes in Retained Earnings ..................104 Agency Funds: Statement of Changes in Assets and Liabilities .............................. ............................105 General Fixed Assets Account Group: Schedule of General Fixed Assets ......................... ............................... ............................107 General Long -term Debt Account Group: Schedule of General Long -term Debt ..................... ............................... ............................109 Supplementary Information: Exhibit Page Combined Schedule of Bonded Indebtedness ..................... Exhibit 1 .... ............................110 Schedule of Changes in Bonded Indebtedness ................... Exhibit 2 .... ............................112 Schedule of Bonds Payable ................... ............................... Exhibit 3 .... ............................113 Schedule of Debt Service Requirements ............................. Exhibit 4 .... ............................117 Assessed Valuation, Tax Levies and Mill Rates .................. Exhibit 5 .... ............................118 Independent Auditors' Report on Minnesota Legal Compliance......................................... ............................... Exhibit 6 .... ............................119 Schedule of Findings on Legal Compliance ......................... Exhibit 7 .... ............................120 PART III -- STATISTICAL SECTION Table Page General Governmental Expenditures by Function Last Ten Fiscal Years ............................. ............................... Table 1 ..... ............................122 General Governmental Revenues by Source Last Ten Fiscal Years ............................. ............................... Table 2 ..... ............................123 CITY OF EDINA, MINNESOTA Table of Contents, Continued Statistical Section (Continued): Property tax Levies and Collections — Last Ten FiscalYears ............................................ ............................... Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property .......... ............................... Property Tax Rates — All Overlapping Governments Last Ten Fiscal Years ............................. ............................... Special Assessment Collections — Last Ten FiscalYears ............................................ ............................... Ratio of Net General Bonded Debt to Assessed Value/Tax Capacity and Net Bonded Debt per Capita — Last Ten Fiscal Years ............. ............................... Computation of Legal Debt Margin - December 31, 1997....... Computation of Overlapping Debt - December 31, 1997 ........ Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures — Last Ten Fiscal Years .. ............................... Revenue Bond Coverage — Last Ten Fiscal Years ................. Property and Construction Values — Last Ten FiscalYears ........................................... ............................... Principal Taxpayers - December 31, 1997 .............................. Major Employers in the City ...................... ............................... Labor Force Data ...................................... ............................... Miscellaneous Statistics - December 31, 1997 ....................... Sources and Uses of Public Funds for 50th & France -No. 1200, a Tax Increment Financing District ................................ ............................... Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1201, a Tax Increment Financing District ................... Sources and Uses of Public Funds for Grandview Area Redevelopment District - No. 1202, a Tax Increment Financing District ................... Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1203, a Tax Increment Financing District ................... Sources and Uses of Public Funds for Southeast Edina Economic Development District-No. 1204, a Tax Increment Financing District............................................. ............................... Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District .......................... Table Page Table 3 ..... ............................124 Table 4 ..... ............................125 Table 5 ..... ............................126 Table 6 ..... ............................127 Table 7 ..... ............................128 Table 8 ..... ............................129 Table 9 ..... ............................130 Table 10 .... ............................131 Table 11 .... ............................132 Table 12 .... ............................133 Table 13 .... ............................134 Table 14 .... ............................135 Table 15 .... ............................136 Table 16 .... ............................137 Table 17 .... ............................139 Table 18 .... ............................140 Table 19 .... ............................141 Table 20 .... ............................142 Table 21 .......... Table 22 ................ ................143 ......144 INTRODUCTORY SECTION CITY OF EDINA, MINNESOTA Elected and Appointed Officials December 31, 1997 Elected: Mayor —Glenn L. Smith Council: Dennis Maetzold James Hovland Nan Faust Michael Kelly 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* 2001 1999 1999 2001 2001 �91NA,r� �1 ok e �C=1 En a• �N�bFeoMTf• April 3, 1998 To the Honorable Mayor and Members of the City Council City of Edina, Minnesota: Page 2 City of Edilna 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 31,1997 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 1997 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. R City Manager �91r1A. � f� �1 ores Cn o• 'N�bAPOMT£ April 3, 1998 To the Honorable Mayor, Members of the City Council, and City Manager City of Edina, Minnesota: Page 4 City of Edina The Comprehensive Annual Financial Report of the City of Edina (the City), for the fiscal year ended December 31,1997, 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 is financially accountable and which the City's relationship with is such that exclusion would cause the City's financial statements to be misleading or incomplete. 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 $28,313,052 in 1997, an increase of 4.1 percent over 1996. General property taxes produced 62.4 percent of general revenues compared to 59.2 percent last year. The amount of revenues 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 Percent Total of total $17,653,621 955,206 331,527 1,388,968 1,996,744 2,842,923 562,910 62.35% 3.37% 1.17% 4.91% 7.05% 10.04% 1.99% Increase (decrease) from 1996 $ 1,563,916 (14, 262) 107,038 6,541 (1,931,608) 1,221,288 106,321 1,199,251 4.24% 218,310 1,038,850 3.67% (137,126) 152,398 0.54% (73,948) 190,654 .67% 48,731 $28,313,052 100.00% $1,115,201 Current tax collections were 98.8 percent of the tax levy, up .06 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 96.9 percent, an increase of 0.25 percent from last year. Page 6 Intergovernmental revenues were 7.1 percent of general revenues compared to 14.4 percent in 1996. Expenditures for general governmental purposes within the General, Special Revenue, Debt Service and Capital Project Funds totaled $40,891,105 an increase of 45.0 percent over 1996. 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 $40,891,105 100.0% $12,687,413 Expenditures for capital outlay were 41.0 percent of total general governmental expenditures. The increase from 1996 is primarily due to the purchase of land by the HRA for $5,157,412 and $6,598,274 in park improvements associated with the Park Bond Referendum. 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 1997: Gross bonded debt outstanding, January 1, 1997 Add bonds issued in fiscal year 1997 Deduct bonds redeemed in fiscal year 1997 Gross bonded debt outstanding, December 31, 1997 Deduct sinking fund assets, December 31, 1997 Net bonded debt, December 31, 1997 .9832 $ 1.626 $92,680,000 12,590,000 10,885,000 94,385,000 (17,729,522) $76,655,478 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 1996 $2,247,040 5.5% $45,728 7,717,334 18.9% 276,733 3,537,441 8.7% 246,699 2,031,261 5.0% 111,502 340,510 .8% 89,295 1,597,747 3.9% (192,576) 16,796,824 41.0% 11,768,559 2,120,000 5.2% 720,000 4,502,948 11.0% (378,527) $40,891,105 100.0% $12,687,413 Expenditures for capital outlay were 41.0 percent of total general governmental expenditures. The increase from 1996 is primarily due to the purchase of land by the HRA for $5,157,412 and $6,598,274 in park improvements associated with the Park Bond Referendum. 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 1997: Gross bonded debt outstanding, January 1, 1997 Add bonds issued in fiscal year 1997 Deduct bonds redeemed in fiscal year 1997 Gross bonded debt outstanding, December 31, 1997 Deduct sinking fund assets, December 31, 1997 Net bonded debt, December 31, 1997 .9832 $ 1.626 $92,680,000 12,590,000 10,885,000 94,385,000 (17,729,522) $76,655,478 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 31,1997 the City had $72,390,000 of Tax Increment Bonds outstanding, excluding General Obligation, Improvement and Revenue Bonds. $18,166,594 was available in the General Debt Service Fund for payment of these obligations, resulting in $54,223,406 net general debt at December 31,1997. 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 1997 the City earned $1,168,439 in interest income. The following is a list of the City's cash and investments by classification as of December 31, 1997: Cash Cash deficit Cash with plan administrator Cash with fiscal agents Certificates of deposit Commercial paper Government securities Money market investments Capital Project Funds $7,974,819 (7,773,089) 2,510,513 21, 724,134 100,000 11,324,630 15,561,194 5,093,020 $56,515,221 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, 1997 the general fixed assets of the City amounted to $78,124,113 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 1997 and 1996 is as follows: Utilities Liquor Swimming pool Golf course Arena Gun Range Art Center Edinborough Park/Centennial Lake Income (loss) 1997 1996 $543,967 $693,705 720,658 594,848 (164,313) 47,124 184,030 83,880 (214,861) (139,954) (10,840) (13,741) (73,434) (79,953) (402,273) (329,069) $582,934 $856,840 Operating transfers to /from other funds for various purposes were $214,408 and $1,600,000 in 1997 and $500,000 and $100,000 in 1996, 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 1997. 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, 9r—La ge John Wallin, CPA Treasurer and Finance Director PegN Accountant FINANCIAL SECTION K�FAgGiPeat 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 31,1997. 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 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. 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 31,1997, 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 notes 7 and 21 to the financial statements the City changed its method of accounting for deferred compensation plan to adopt the provisions of Governmental Accounting Standards Board Statement No. 32, Accounting and Financial Reporting for Intemal Revenue Code Section 457 Deferred Compensation Plans. 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. Member Firm of KPMG International KP 4GJ Peat Marwick LAP 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. '��/ lorOW�4�el-v April 3, 1998 CITY OF EDINA, MINNESOTA Combined Balance Sheet - All Fund Types and Account Groups December 31, 1997 (with comparative totals for December 31, 1996) 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 Taxes 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 retirement 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 and 22) Property tax abatement payable Deferred revenue Advance from other funds (note 10) 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 Page 11 .1" 325,729 Special Debt Capital General Revenue Service Projects _ $ 27,108 0 0 18,279 1,690 0 0 0 5,271,540 881,453 0 25,796,426 0 0 0 0 0 0 17,729,522 0 2021330 45 31,427 20,716 0 0 0 0 41 7,310 0 137,616 0 0 2,681;199 100,836 0 0 0 0 0 0 0 46,149 5,361,025 26,376 1,698,455 0 220,954 28,171 3,8.35 326 0 0 0 0 21,080 0 0. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 11.105.768 943.355 22.144.438 26.120.348 325,729 52,826 0 258,888 259,477 1,229 0 998 0 0 0 224,109 0 0 0 0 221,821 5,885 0 7,494,686 354,449 0 132,819 36 0 911 0 0 0 0 0 0 0 0 0 0 0 0 0 1,488,691 0 0 2,546,912 100,836 0 0 0 0 0 0 0 0 0 0 0 0 1,161,476 60,851 2,679,731 9,568,244 0 0 0 0 0 0 0 0 0 0 0 0 0 0. 0 0 1,642,733 0 19,464,707 181,361 5,708,632 0 0 0 2,592,927 882,504 .0 16,370,743 9,944,292, 882,504 19,464,707 ', 16,552,104 $ 11,105,768 943,355 22,144,438 26,120,348 Page 12 Proprietary Fiduciary fund type fund type Account groups General General Totals Trust & Fixed Long -tens (memorandum only) Enterprise Agency Asset Debt 1997 1996 0 143,888 0 0 189,275 596,399 10,765 0 0 0 12,455 10,355 10,266 119,159 0 0 32,078,844 32,335,367 0 2,510,513 0 0 2,510,513 8,217,281 3,994,612 0 0 0 21,724,134 24,923,924 168,658 0 0 0 423,176 606,585 2,117,545 0 0 0 2,117,545 2,089,453 53,610 0 0 0 198,577 353,315 22,153 0 0 0 2,804,188 2,897,524 0 0 0 0 0 1,616,446 236 0 0 0 46,385 0 900,014 0 0 0 7,985,870 6,460,033 0 6,420 0 0 259,706 409,106 913,363 0 0 0 913,363 797,606 0 0 0 0 21,080 26,931 1,596,747 0 0 0 1,596,747 2,711,415 39,414,920 0 78,124,113 0 117,539,033 102,242,904 65,831 0 0 0 65,831 80,787 0 0 0 19,464,707 19,464,707 21,767,924 0 0 0 62,846,317 62,846,317 58,194,348 49.268.720 2.779.980 78.124.113 82.311.024 272.797.746 266.337.703 722,691 7,981 0 0 1,368,115 1,475,136 76,726 0 0 0 338,430 262,475 24,145 0 0 0 248,254 116,940 394,506 0 0 0 394,506 407,858 250,000 13,478 0 0 7,985,870 6,460,033 402,957 248,008 0 0 1,138,269 454,778 130,308 0 0 522,035 653,254 644,878 6,170 0 0 0 6,170 229,989 0 0 0 0 0 8,217,281 0 0 0 0 1,488,691 0 5,040 0 0 0 2,652,788 2,761,538 1,596,747 0 0 0 1,596,747 2,711,415 360,000 0 0 593,989 953,989 1,055,000 13,190,000 0 0 81,195,000 94,385,000 92,680,000 17,159,290 269,467 0 82,311,024 113,210,083 117,477,321 0 0 78,124,113 0 78,124,113 68,409,756 6,096,611 0 0 0 6,096,611 628,981 1,607,870 0 0 0 1,607,870 1,607,870 24,404,949 0 0 0 24,404,949 22,020,960 0 2,510,513 0 0 23,799,314 25,085,457 0 0 0 0 5,708,632 7,310,166 0 0 0 0 19,846,174 23,797,192 32,109,430 2,510,513 78,124,113 0 159,587,663 148,860,382 49,268,720 2,779,980 78,124,113 82,311,024 272,797,746 266,337,703 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenditures and Changes in Fund Balance - AII Governmental Fund Types Year ended December 31, 1997 (with comparative totals for year ended December 31, 1996) 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) - Edinborough Park Fund Operating transfers in (out) -HRA Operating transfers in (out) - General Debt Service Fund Parkland dedication Capital Lease Proceeds from sale of bonds Proceeds of refunding bonds Payment to refunded bond escrow agent Payment for refunded bonds Reserve for construction Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Page 13. Governmental fund types 0 Fiduciary Type 0 Special Debt Capital Expendable General Revenue Service Projects Trust $ 12,105,724 0 666,072 4,881,825 0 0 0 840,238 114,968 0 0 331,527 0 0 0 1,388,968 0 0 0 0 1,643,648 182,507 0 170,589 0 1,576,224 0 0 1,266,699 0 562,910 0 0 0 0 30,812 49,067 0 1,119,372 0 0 0 1,038,850 0 0 149,047 0 0 3,351 0 45,186 0 0 145,468 614,412 17,502,519 563,101 2,545,160 7,702,272 614,412 2,247,040 0 0 0 0 7,717,334 0 0 0 0 3,537,441 0 0 0 0 2,031,261 0 0 0 0 340,510 0 0 0 0 117,167 454,952 2,281 1,023,347 42,185 51,638 0 0 0 0 334,523 0 0 0 0 431,291 0 0 0 0 104,058 0 0 0 0 0 0 0 15,867,676 0 0 7,638 0 0 0 0 0 2,120,000 0 0 0 0 4,502,948 0 0 16,912,263 462,590 6,625,229 16,891,023 42,185 590,256 100,511 (4,080,069) (9,188,751) 572,227 0 0 0 4,025 0 0 0 0 4,025 0 590,256 100,511 (4,080,069) (9,184,726) 572,227 0 0 0 78,142 0 0 0 0 (333,000) 0 0 0 (1,600,000) 0 0 0 254,858 0 4,856,852 0 0 0 0 (4,856,852) 331,466 0 0 0 0 0 0 0 0 0 0 7,573,354 0 0 5,000,000 0 0 0 0 0 0 0 (8,080,000) 0 0 0 0 0 (1,346,676) 0 1,776,852 2,794,644 (756,420) 100,511 (2,303,217) (6,390,082) Fund balance - January 1 10,700,712 781,993 21,767,924 22,942,186 Cummulative effect of adoption of GASB 32 (note 7 and 21) 0 0 0 0 Fund balance - December 31 See accompanying notes to financial statements 0 0 0 0 0 0 0 0 0 0 0 0 0 0 572,227 0 1,938,286 $ 9,944,292 882,504 19,464,707 16,552,104 2,510,513 Page 14 Totals (memorandum only) 1997 1996 17, 653, 621 16, 089, 705 955,206 969,468 331,527 224,489 1,388,968 1,382,427 1,996,744 3,928,352 2,842,923 1,621,635 562,910 456,589 1,199,251 950,129 1,038,850 1,175,976 152,398 108,111 805,066 292,018 28,927,464 27,198,899 2,247,040 2,201,312 7,717,334 7,440,601 3,537,441 3,290,742 2,031,261 1,919,759 340,510 251,215 1,639,932 1,790,323 51,638 21,433 334,523 326,379 431,291 509,513 104,058 113,557 15,867,676 4,055,972 7,638 1,411 2,120,000 1,400,000 4,502,948 4,881,475 40,933,290 28,203,692 (12,005,826) (1,004,793) 5,111,710 4,025 19,654 4,025 19,654 (12,001,801) (985,139) 78,142 50,159 0 400,000 (333,000) (50,159) (1,600,000) 0 5,111,710 4,243,252 (4,856,852) (4,243,252) 331,466 65,561 0 650,000 7,573,354 8,042,433 5,000,000 10,050,000 0 (10,050,000) (8,080,000) (15,815,000) 0 800 3,224,820 (6,656,206) (8,776,981) (7,641,345) 56,192,815 63,834,160 1,938,286 0 49,354,120 56,192,815 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, 1997 (with comparative totals for year ended December 31, 1996) Excess (deficiency) of revenues over expenditures Other financing sources (uses): 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 (400,000) 400,000 0 0 0 400,000 590,256 254,858 (1,933,000) 331,466 0 (1,346,676) 990,256 (145,142) (1,933,000) 331,466 0 (1,746,676) (756,420) (756,420) 10,700,712 9,944,292 General Variance favorable Budget Actual (unfavorable) Revenues: Taxes (note 3) $ 12,291,244 12,105,724 (185,520) Licenses and permits 1,008,500 1,388,968 380,468 Intergovernmental 1,453,735 1,643,648 189,913 Charges for services 1,435,700 1,576,224 140,524 Fines and forfeitures 395,000 562,910 167,910 Interest on investments 15,000 30,812 15,812 Sales and rental of property 50,000 149,047 99,047 Other revenues 30,500 45,186 14,686 Total revenues 16,679,679 17,502,519 822,840 Expenditures: Current: General government 2,264,586 2,247,040 17,546 Public safety 7,880,017 7,717,334 162,683 Public works 3,580,764 3,537,441 43,323 Parks 2,031,983 2,031,261 722 Unallocated general 291,265 340,510 (49,245) Other 0 117,167 (117,167) Capital outlay: General government 26,576 51,638 (25,062) Public safety 437,484 334,523 102,961 Public works 472,704 431,291 41,413 Parks 94,300 104,058 (9,758) Total expenditures 17,079,679 16,912,263 167,416 Excess (deficiency) of revenues over expenditures Other financing sources (uses): 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 (400,000) 400,000 0 0 0 400,000 590,256 254,858 (1,933,000) 331,466 0 (1,346,676) 990,256 (145,142) (1,933,000) 331,466 0 (1,746,676) (756,420) (756,420) 10,700,712 9,944,292 Page 16 Totals (memorandum only) Special Revenue 1997 1996 Variance Variance favorable favorable Budget Actual (unfavorable) Budget Actual (unfavorable) Actual 0 0 0 12,291,244 12,105,724 (185,520) 11,747,743 0 0 0 1,008,500 1,388,968 380,468 1,382,427 188,011 182,507 (5,504) 1,641,746 1,826,155 184,409 1,723,940 0 0 0 1,435,700 1,576,224 140,524 1,621,635 0 0 0 395,000 562,910 167,910 456,589 0 0 0 15,000 30,812 15,812 16,815 0 0 0 50,000 149,047 99,047 103,367 0 0 0 30,500 45,186 14,686 10,402 188,011 182,507 (5,504) 16,867,690 17,685,026 817,336 17,062,918 0 0 0 2,264,586 2,247,040 17,546 2,201,312 0 0 0 7,880,017 7,717,334 162,683 7,440,601 0 0 0 3,580,764 3,537,441 43,323 3,290,742 0 0 0 2,031,983 2,031,261 722 1,919,759 0 0 0 291,265 340,510 (49,245) 251,215 188,011 182,507 5,504 188,011 299,674 (111,663) 473,597 0 0 0 26,576 51,638 (25,062) 21,433 0 0 0 437,484 334,523 102,961 326,379 0 0 0 472,704 431,291 41,413 509,513 0 0 0 94,300 104,058 (9,758) 113,557 188,011 182,507 5,504 17,267,690 17,094,770 172,921 16,548,108 0 0 0 (400,000) 590,256 990,257 514,810 0 0 0 400,000 254,858 (145,142) 400,000 0 0 0 0 (1,933,000) (1,933,000) (50,159) 0 0 0 0 331,466 331,466 65,561 0 0 0 0 0 0 800 0 0 0 400,000 (1,346,676) (1,746,676) 416,202 0 0 0 0 (756,420) (756,420) 931,012 0 10,700,712 9,769,700 0 9,944,292 10,700,712 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types Year ended December 31, 1997 (with comparative totals for year ended December 31, 1996) 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 (loss) on sale of fixed assets Amortization of bond discount Total nonoperating revenues (expenses) Income before operating transfers Operating transfers in (out): General fund Art center fund Liquor store fund Arena fund Gun range fund Edinborough Park/Centennial Lake Total operating transfers, net Net income Add depreciation on contributed assets Increase in retained earnings Retained earnings - January 1 Residual equity transfer out Retained earnings - December 31 See accompanying notes to financial statements Page 17 Totals 1997 1996 $ 7,426,218 6,399,235 5,607,325 4,813,865 1,818,893 1,585,370 13, 275, 588 12, 608, 639 15,094,481 14,194,009 3,715,800 3,955,454 2,610,358 986,910 1,069,164 1,779,721 14,117,407 977,074 374,217 34,102 6,556 182,924 (803,155) (19,761) (154,067) (14,956) (394,140) 582,934 1,600,000 (67,000) 214,408 (100,000) (22,408) (25,000) 1,600,000 2,182,934 214,074 2,397,008 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) 856,840 (400,000) (95,000) 100,000 0 (5,000) 0 (400,000) 456,840 70,725 527,565 23,628,830 23,101,265 (13,019) $ 26,012,819 23,628,830 Page 18 CITY OF EDINA, MINNESOTA Combined Statement of Cash Flows - All Proprietary Fund Types Combining Statement of Cash Flows Year Ended December 31, 1997 (with comparative totals for December 31, 1996) Totals Cash flows from operating activities: 1997 1996 Operating income $ 977,074 1,021,774 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation expense 1,779,721 1,662,373 Changes in assets and liabilities: (Increase) decrease in accounts receivable (59,032) 133,898 (Increase) decrease in customer accounts receivable (28,092) 22,349 Increase in special assessments receivable (1,526) (18,868) Increase in taxes receivable (236) 0 Decrease in due from other governments 3,757 3,692 Increase in inventory (115,757) (173,842) Decrease in prepaid expenses 0 288,506 Increase in accounts payable 266,609 77,100 Increase in salaries payable 19,564 13,522 Increase in contracts payable 14,357 9,788 Decrease in accrued interest payable (13,352) (45,417) Increase (decrease) in due to other governments 289,668 (12,915) Increase in compensated absences payable 6,772 14,467 Decrease in deposits payable (3,981) (6,125) Increase (decrease) in deferred revenue (24,401) 13,910 Increase in due from other funds (817,830) (8,678) Increase (decrease) in due to other funds (220,458) 171,602 Total adjustments 1,095,783 2,145,362 Net cash provided by operating activities 2,072,857 3,167,136 Cash flows from noncapital financing activities: Donations 23,836 14,479 Miscellaneous revenue 6,556 7,575 Decrease in advance to other funds 194,137 302,309 Decrease in advance from other funds (1,114,668) (69,795) Decrease in reserve for construction 0 (750) Operating transfer in (out)-General Fund 1,600,000 (400,000) Operating transfer (out )-Art Center (67,000) (95,000) Operating transfer in- Liquor Store Fund 214,408 100,000 Operating transfer (out )-Arena (100,000) 0 Operating transfer (out) -Gun Range (22,408) (5,000) Operating transfer (out) - Edinborough Park (25,000) 0 Residual equity transfer out (13,019) 0 Net cash (used) provided for noncapital financing activities 696,842 (146,182) Cash flows from capital financing activities Net acquisition of capital assets (1,679,789) (2,212,299) Gain (loss) on sale of Fixed assets (154,067) 32,531 Principal paid on revenue bonds (685,000) (1,170,000) Principal paid on capital lease (45,000) (45,000) Interest earned from fiscal agent 182,924 219,459 Interest paid on capital lease (236,638) (238,346) Interest paid on bonds (586,278) (610,102) Net cash used by capital financing activities (3,203,848) (4,023,757) Cash flows from investing activities (Increase) decrease in interest receivable 16,063 (747) Interest on investments 374,217 424,425 Net cash provided by investing activities 390,280 423,678 Net decrease in cash and cash equivalents (43,869) (579,125) Cash and equivalents, beginning of year 4,049,246 4,628,371 Cash and equivalents, end of year $ 4,005,377 4,049,246 Supplemental disclosure of noncash noncapital financing activity: Donation of investments $ 10,266 0 Contribution of fixed assets 5,681,704 0 Total noncash noncapital financing activity $ 5,691,970 0 See accompanying notes to financial statements Page 19 CITY OF EDINA, MINNESOTA Notes to Financial Statements December 31,1997 (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 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 (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 Trust and Agency Funds —Trust Funds account for assets held by the City in a trustee capacity. 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 specific liabilities of proprietary funds. C. Measurement Focus All Governmental Funds and the expendable trust fund 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. (Continued) Page 22 CITY OF EDINA, MINNESOTA 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. 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 and expendable trust fund 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, charges for service, 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 (Continued) E. Page 23 CITY OF EDINA, MINNESOTA 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. 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. Budgets and Budgetary Accounting The City adopts an annual budget for the General Fund and the Community Development Block Grant Fund, a Special Revenue Fund. (The council has elected not to prepare a budget for the Communications Fund, the City's other 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: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted by the passage of a resolution by the City Council. 4. Formal budgetary integration is employed as a management control device during the year. 5. Budgets for the General Fund and the Community Development Block Grant Fund, a 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. (Continued) Page 24 CITY OF EDINA, MINNESOTA 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. 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. G. 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 eamed is allocated as determined by the Investment Advisory Committee. H. Investments The City's investments are stated at cost or amortized cost, except for deferred compensation investments and investments with fiscal agents which are stated at market value. I. 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. J. Advances and Interfund Receivables /Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are recorded as due to /from other funds for the current portion and as advance toffrom other fund for the long -term portion. (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. The costs of proprietary fund -type inventories are recorded as an expense when consumed rather than when purchased. 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, 1997 reported in the Governmental Funds, Proprietary Funds and General Long -term Debt Account Group was $911, $130,308 and $522,035, 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 1996 amounts were reclassified to conform to the 1997 presentation. P. GAS13 Statement No. 20 In accordance with Governmental Accounting Standards, proprietary and similar trust funds may apply all GASB pronouncements, 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), (Continued) Page 26 CITY OF EDINA, MINNESOTA 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, 1997 the City was not in compliance with Minnesota Statutes regarding pledged collateral. The City's deposits are insured or collateralized, however, the City's interest in pledged collateral for deposits of $744,637 at two financial institutions was not perfected. 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, 1997 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 Municipal Bonds Donated Stocks Bank Balance Category Category 1 2 $ 300,000 $ 744,637 0 0 100,000 0 0 11,324,700 0 5,093,020 0 3,645,003 0 2,809,936 0 297,140 0 1,836,549 0 2,393,449 0 100,000 0 1,968,781 0 2,500,000 0 10,266 $ 400,000 $ 32,723,481 Market Book Value Balance $ 1,044,637 $ 189,275 12,455 12,455 100,000 100,000 11, 374,097 11, 324,630 5,093,020 5,093,020 3,826,237 3,645,073 2,842,588 2,809,936 298,661 297,140 1,814,073 2,401,128 100,397 1,997,459 2,500,000 10,266 $ 33,415,018 $ 1,836,549 2,393,449 100,000 1,968,781 2,500,000 10,266 32,280,574 In accordance with Minnesota Statutes, the City invests in various mortgage - backed securities, such as collateralized mortgage obligations. Included in the Federal Home Loan Mortgage Corporation investments are approximately $501,197 (market value of approximately $478,750) 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 Home Loan Mortgage Corporation 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 (Continued) (3) Page 28 CITY OF EDINA, MINNESOTA material adverse effect on the yield to maturity of the collateralized mortgage obligations. The Donated Stocks were given to the City prior to year end and were sold subsequently. The City also has the following unclassified cash and investments: Cash and Carrying Bank balance Investments: Amount With plan administrators $ 2,510,513 2,510,513 With fiscal agents 21,724,134 21,724,134 $ 24,234,647 24,234,647 The municipal bond investment consists of a $2,500,000 Temporary Tax Increment Bond, Series 1997B issued by the Housing and Redevelopment Authority of the City. This bond is backed by the full faith, credit and taxing power of the City. Property Taxes 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. (Continued) CITY OF EDINA, MINNESOTA (4) Fixed Assets A summary of changes in general fixed assets during 1997 is as follows: Land 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 5,239,852 0 0 22,503,715 12,010,375 870,882 0 0 12,881,257 19,680,962 772,449 0 0 20,453,411 858,131 296,385 158,826 4,029 999,719 3,286,379 465,536 354,786 32,560 3,429,689 310,995 0 0 0 310,995 190,330 0 0 0 190,330 372,230 51,256 7,006 (36,889) 379,591 737,845 87,373 15,099 31,319 841,438 1,855,982 193,931 109,429 (37,271) 1,903,213 725,486 32,403 134,277 367 623,979 1,280,125 59,763 0 0 1,339,888 138,114 0 0 0 138,114 99,958 15,204 23,103 5,885 97,944 153,570 0 0 0 153,570 5,812 0 0 0 5,812 7,355,921 1,792,100 0 0 9,148,021 2,083,678 639,749 0 0 2,723,427 $68,409,756 10,516,883 802,526 (0) 78,124,113 A summary of proprietary fund fixed assets at December 31,1997 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 Enterprise fund $1,088,965 4,608,216 924,865 11,642,927 11, 925,158 12,355,239 15,092,995 695,714 4,410,299 450,097 468,580 15,553 63,678,608 (24,263,688) $39,414,920 (Continued) CITY OF EDINA, MINNESOTA (5) Long -term Debt Bonded Debt Page 30 The City has four types of bonded debt outstanding at December 31,1997: 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: Balance December 31, Maturities Interest rates 1997 Tax Increment Bonds 2003-2009 4.25 -7.30% $72,390,000 General Obligation Bonds 1999-2017 4.25 - 5.75 8,090,000 Improvement Bonds 1997-2001 4.00 - 5.20 715,000 Revenue Bonds 1997-2013 3.80 - 7.30 13,190,000 Total $94,385,000 Changes in long -term debt during the year were as follows: Balance Balance January 1, Issued/ Redeemed/ December 31, 1997 increases decreases 1997 Tax Increment Bonds $69,815,000 12,590,000 10,015,000 72,390,000 General Obligation Bonds 8,090,000 0 0 8,090,000 Improvement Bonds 900,000 0 185,000 715,000 Revenue Bonds 13,875,000 0 685,000 13,190,000 $92,680,000 12,590,000 10,885,000 94,385,000 The City had the following revenue bonds outstanding at December 31, 1997: 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 $ 2,320,000 1,655,000 3,860,000 4,535,000 820,000 $ 13,190, 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 1997, the City issued $5,090,000 in General Obligation Tax Increment Bonds, Series 1997B with an average interest rate of 5.057% to refund the Temporary Tax Increment Bond, Series 1997A, for $5,000,000. The 1997A Series had an original interest rate of 4.50 %. The net proceeds of $5,073,354 (after payment of $16,646 including the discount and issuance costs) were used to pay off the entire Temporary Tax Increment, Series 1997A, for $5,000,000. The City issued the long -term debt to replace the temporary debt. The resulting economic gain (loss) related to the refunding is immaterial to the general purpose financial statements, taken as a whole. On August 15, 1997, the City issued $2,500,000 in a Temporary Tax Increment Bond, Series 1997B. The debt was issued to finance development efforts in the Grandview area of the Housing and Redevelopment Authority of Edina (HRA). 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. 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. (Continued) Page 32 CITY OF EDINA, MINNESOTA 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 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, 1997, including interest payments of $32,351,381 are as follows: Year ending Tax General December 31 Increment Obligation Improvement Revenue Total 1998 $ 23,547,389 429,000 216,008 5,420,334 29,612,731 1999 5,628,760 688,369 202,250 1,312,163 7,831,542 2000 8,254,264 686,688 193,340 880,088 10,014,380 2001 5,672,000 698,888 174,420 876,618 7,421,926 2002 -2018 51,939,399 10,921,344 0 8,995,061 71,855,804 $ 95,041,812 13,424,289 786,018 17,484,264 126,736,383 (Continued) CITY OF EDINA, MINNESOTA Legal Debt Margin Page 33 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, 1997, the legal debt margin was $73,404,273 calculated as follows: Market value Debt limit - 2% of market value Amount of general obligation debt Less: Tax increment bonds $ 72,390,000 Improvement bonds 715,000 Revenue bonds 13,190,000 Total deductions Total amount of debt applicable to debt limit Legal debt margin $ 94,385,000 86.295.000 $ 4,074,713,634 81,494,273 Q non nnn 73,404,273 (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 1997. 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 1,432,698 Captured tax capacity value: Retained by authority 1,142,990 Shared with other taxing districts 0 General obligation tax increment bonds issued 5,350,000 Total loans incurred 0 Amounts redeemed 2,200,000 Outstanding bonds and loans at December 31, 1997 $ 3,150,000 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 2,600,990 Captured tax capacity value: Retained by authority 2,372,581 Shared with other taxing districts 0 General obligation tax increment bonds issued 22,110,000 Total loans incurred 0 Amounts redeemed 8,415,000 Outstanding bonds and loans at December 31, 1997 $ 13,695,000 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, 1997 $ 321,372 897,953 576,581 0 4,550,000 0 950,000 $ 3,600,000 (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 1,339,220 Captured tax capacity value: Retained by authority 1,069,503 Shared with other taxing districts 0 General obligation tax increment bonds issued 52,995,000 Total loans incurred 0 Amounts redeemed 1,050,000 Outstanding bonds and loans at December 31, 1997 $ 51,945,000 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 $ 12,184,589 Current tax capacity value 12,184,589 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, 1997 $ 0 70th and Cahill Redevelopment District -No. 1207, a development district established in 1990 pursuant to Minnesota Statutes with a termination date of 2000. Original tax capacity value $ 0 Current tax capacity value 303,468 Captured tax capacity value: Retained by authority 235,789 Shared with other taxing districts 67,679 General obligation tax increment bonds issued 0 Total loans incurred 94,692 Amounts redeemed 88,329 Outstanding bonds and loans at December 31, 1997 $ 6,363 General Obligation tax increment bonds issued amounts were restated to eliminate the effect of doubling the bonds due to crossover refundings. (Continued) Page 36 CITY OF EDINA, MINNESOTA (6) Retirement Plans A. Defined Benefit Pension Plans 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, 1997, 1996, and 1995 were equal to the required contributions for each year, as follows: 1997 1996 1995 PERF $379,677 359,241 333,775 PEPFF $490,765 480,694 465,061 (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 1997 was 6.2% and was based on the first $65,400 paid. In 1997 the City also contributed 1.45% of the contribution rate on employee's wages for mandatory Medicare. The cost of Social Security and mandatory Medicare in 1997 and 1996 was $725,247 and $679,118 respectively. (Continued) Page 37 CITY OF EDINA, MINNESOTA (7) Deferred Compensation Plan In 1997, the City implemented GASB No. 32, Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, which requires deferred compensation plans that meet the criteria in Internal Revenue Code Section 457(8) and are held in a trustee capacity to be reported as an expendable trust fund. The City offers its employees six deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans are Aetna, International City Manager's Association (ICMA), Great West, T. Rowe Price, Minnesota State Retirement System (MSRS), and Minnesota Mutual. The plans, available to all City employees, permit participants to defer a portion of their salary until future years. The deferred compensation is not available to participants until termination, retirement, death, or unforeseeable emergency. In 1997, the City amended its deferred compensation plans and transferred all assets and income of the plans to trusts established for the exclusive benefit of eligible participants and their beneficiaries in accordance with Internal Revenue Code Section 457(g). No part of either trust shall revert to the City or be used for or diverted to purposes other than the exclusive benefit of participants and their beneficiaries. The City is trustee for two of the plans and accordingly, the plan assets (recorded at market value) and fund balance are recorded in an expendable trust fund. Plan assets were $2,510,513 at December 31, 1997. The City's other four deferred compensation plans have third -party administrators who also act in a trustee capacity. Accordingly, these plan assets were reported as agency fund deductions in 1997 and will no longer be reported in the City's financial statements. (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 31,1997 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 7,426,218 0 0 0 7,426,218 8,092,634 0 3,170,255 880,691 1,132,008 13,275,588 771,851 45,568 516,927 216,544 228,831 1,779,721 568,141 721,255 647,196 (41,091) (918,427) 977,074 (24,174) (597) (463,166) (173,770) 267,567 (394,140) 0 (214,408) 0 100,000 1,714,408 1,600,000 543,967 506,250 184,030 (114,861) 1,063,548 2,182,934 1,042,375 72,062 522,821 3,780,211 2,149,856 7,567,325 85,758 21,169 482,430 0 340,685 1,216,437 2,421,843 323,274 1,678,463 1,728,051 38,258 6,189,889 820,000 0 8,097,525 3,639,725 632,750 13,190,000 26,020,231 2,330,226 10,132,580 7,209,896 3,575,787 49,268,720 24,653,543 1,799,970 655,185 (1,338,835) 242,956 26,012,819 (Continued) Page 39 (9) CITY OF EDINA, MINNESOTA Due From To Other Funds Interfund receivables and payables as of December 31,1997 were as follows: 00) Advance From To Other Funds Advances to /advances from other funds as of December 31, 1997 were as follows. Advances to Advances from Fund other funds other funds Enterprise: Utilities Liquor Golf Course Arena 823,480 773,267 0 0 $ 1,596,747 0 0 773,267 823,480 1,596,747 (Continued) Interfund Interfund Fund Receivables Payables General (including amount due from Edina Housing and Redevelopment Authority of $1,645,896) $ 5,361,025 221,821 Special Revenue: Community Development Block Grant 0 5,885 Communications 26,376 0 Debt Service: General Debt Service 433,237 0 Improvement Bond Redemption II 1,265,218 0 Capital Project: Construction Fund 0 4,867,582 Housing and Redevelopment Authority of Edina 0 1,645,896 Revolving Fund 0 258,391 Park Improvement 0 722,817 Enterprise: Utilities 806,728 0 Liquor 21,168 0 Swimming Pool 49,265 0 Golf Course 0 200,000 Arena 0 50,000 Art Center 643 0 Edinborough Park/Centennial Lake 22,210 0 Agency: Police Seizure 0 13,478 $ 7,985,870 7,985,870 00) Advance From To Other Funds Advances to /advances from other funds as of December 31, 1997 were as follows. Advances to Advances from Fund other funds other funds Enterprise: Utilities Liquor Golf Course Arena 823,480 773,267 0 0 $ 1,596,747 0 0 773,267 823,480 1,596,747 (Continued) Page 40 CITY OF EDINA, MINNESOTA (11) Reserved or Designated Fund Equity The following fund equity balances as of December 31, 1997 have been reserved or designated for the reasons noted below: General Fund: Reserved for equipment replacement Reserved for insurance claims Unreserved -- designated for dedicated funds Debt Service Funds: Reserved for debt service Capital Projects: Reserved for encumbrances Reserved for special projects Enterprise Funds: Reserved for construction Reserved for debt service Trust and Agency Funds: Reserved for deferred compensation plan participants Total fund equity reservations and designations (12) Fund Deficits $1,266,968 375,765 5,708,632 19,464,707 103,019 78,342 750 1,607,120 2,510,513 $31,115,816 The following funds had deficit fund balances or retained earnings at December 31,1997: Capital Project Funds: Construction Fund Enterprise Funds: Swimming Pool Fund Arena Fund $(4,909,958) (96,525) (1,338,835) 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 January 2, 1998, the $2,470,000 Series 1988 and $2,100,000 Series 1989 Recreation Facility Bonds were called. These bonds were serviced through a crossover refunding which originally took place during 1992. On February 1, 1998, the $10,175,000 Series 1988 and $8,425,000 Series 1989 Tax Increment Bonds were called. These bonds were serviced through a crossover refunding which originally took place during 1992. (Continued) Page 41 CITY OF EDINA, MINNESOTA The owners of Southdale Shopping Center had filed a claim for the property taxes payable and interest in 1994, 1995 and 1996. This claim has been settled and on April 6, 1998, the City made a settlement payment to Hennepin County in the amount of $1,718,321. As of December 31, 1997, the City recorded $1,488,691 of the settlement related to the TIF districts as property tax abatement payable in the capital projects fund and with $229,630 of the settlement related to interest on abatement as due to other governments in the general fund. (14) Contingencies The City Attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance or will not have a material adverse effect on the financial condition of the City. (15) Capital Lease The City has recorded a capital lease for equipment installed in the Arena, Golf Course and Edinborough Park Enterprise Funds. The assets acquired through capital leases are as follows: Asset Machinery and equipment Less: Accumulated depreciation Total Golf Course $37,966 Edinborough Arena Park 341,698 88,916 (15,186) (136,679) (35,566) $22,780 205,019 53,350 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, 1997: Year ending December 31: 1998 $67,811 1999 65,511 2000 63,111 2001 65,483 2002 67,620 Later years 100,366 Total minimum lease payments 429,902 Less: Amount representing interest (69,902) Present value of net minimum lease payments $360,000 The City has recorded a capital lease 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. (Continued) CITY OF EDINA, MINNESOTA The asset acquired through this capital lease is as follows: Asset Building Less: accumulated depreciation Total Year ending December 31: 1998 1999 2000 2001 2002 Later years Total minimum lease payments Less: Amount representing interest General Fixed Assets $630,749 Present value of net minimum lease payments (16) Fund Equity -- Contributed Capital $630,749 The following is a summary of the changes in contributed capital: Contributed capital: Balance January 1, 1997 $ Add: Contribution of fixed assets Less: Transfer of depreciation to contributed capital Page 42 $83,761 83,761 83,761 83,761 83,761 335,039 753,844 (159,855) $593,989 Enterprise Edinborough Park Art Center Pool Arena Centennial Lake 0 0 0 628,981 10,020 1,797,419 3,665,386 208,879 (501) (48,267) (87,228) (78,078) Balance December 31, 1997 $ 9,519 1,749,152 3,578,158 759,782 (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 (Continued) Page 43 CITY OF EDINA, MINNESOTA 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 $393,633 in 1997. 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 $54,782,530. 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 $375,765 in the general fund to finance potential uninsured loss. Settlement claims have not exceeded insurance coverage for either of the past three years. (18) Conduit Debt Obligations As of December 31, 1997, the City of Edina had outstanding 3 series of Housing Revenue Bonds, with an aggregate principal amount payable of $45,815,000. 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. (Continued) Page 44 CITY OF EDINA, MINNESOTA (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 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, 1997, expenditures exceeded appropriations in the following departments: All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. (21) Change in Accounting Principle As described in note 7, the City implemented GASB No. 32, Accounting and Financial Reporting for Intemal Revenue Code Section 457 Deferred Compensation Plans, (Continued) Budget Actual Variance General Government: Mayor & Council 65,214 65,313 (99) Administration 702,638 751,711 (49,073) Finance 415,004 417,592 (2,588) Assessing 436,384 462,194 (25,810) Public Safety: Civil Defense 36,755 42,895 (6,140) Public Works: Administration 141,808 146,572 (4,764) Supervision & Overhead 550,461 552,839 (2,377) Street Lighting 431,500 511,138 (79,638) Sidewalks & Ramps 111,980 154,353 (42,373) Parks: Recreation 137,045 153,552 (16,507) Special Turf Care 198,000 228,372 (30,372) Litter Removal 26,500 30,015 (3,515) Building Maintenance 276,000 276,308 (308) Capital Outlay 90,500 102,181 (11,681) Unallocated General: So. Hennepin Hum. Serv. 18,965 63,601 (44,636) Contingencies 70,000 93,866 (23,866) Central Services: General 3,602,316 3,687,094 (84,778) Public Works Building 203,292 224,293 (21,001) Equipment Operation 1,035,804 1,055,381 (19,577) All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. (21) Change in Accounting Principle As described in note 7, the City implemented GASB No. 32, Accounting and Financial Reporting for Intemal Revenue Code Section 457 Deferred Compensation Plans, (Continued) Page 45 CITY OF EDINA, MINNESOTA during 1997. This statement requires two of the City's deferred compensation plans to be reported in an expendable trust fund. Prior to 1997, these deferred compensation plans were reported in an agency fund. The adjustment to reflect this change in accounting principle at January 1, 1997 is as follows: Trust and Agency Funds Fund equity, as previously reported $ 0 Cumulative effect of change in accounting principle for GASB No. 32 $ 1,938,286 Fund equity, as restated $ 1,938,286 (22) Residual Equity Transfer During 1997, the City closed the gun range enterprise fund and transferred the remaining assets and liabilities to the general fixed asset account group. The net equity transferred was $13,019, which the City reported as a residual equity transfer out in the gun range enterprise fund. Page 46 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. CITY OF EDINA, MINNESOTA General Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) 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 Total liabilities and fund balance 1997 1996 $ 27,108 350,897 1,690 1,690 5,271,540 6,710,643 202,330 229,297 41 1,411 39,107 36,198 (39,107) (36,198) 5,361,025 5,270,759 220,954 259,140 21,080 26,931 $ 11,105,768 12,850,768 325,729 259,477 221,821 354,449 0 1,161,476 654,684 203,032 1,189,276 90,290 12,774 2,150,056 1,642,733 1,491,189 5,708,632 7,310,166 2,592,927 1,899,357 9,944,292 10,700,712 11,105,768 12,850,768 Page 47 Page 48 CITY OF EDINA, MINNESOTA General Fund Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) 1997 1996 Variance Favorable Budget Actual (unfavorable) Actual Revenues: Taxes $ 12,291,244 12,105,724 (185,520) 11,747,743 Licenses and permits 1,008,500 1,388,968 380,468 1,382,427 Intergovernmental 1,453,735 1,643,648 189,913 1,513,350 Charges for service 1,435,700 1,576,224 140,524 1,621,635 Fines and forfeitures 395,000 562,910 167,910 456,589 Sale and rental of property 50,000 149,047 99,047 103,367 Other revenues 45,500 75,998 30,498 27,217 Total revenues 16,679,679 17,502,519 822,840 16,852,328 Expenditures: Current: General government 2,264,586 2,247,040 (17,546) 2,201,312 Public safety 7,880,017 7,717,334 (162,683) 7,440,601 Public works 3,580,764 3,537,441 (43,323) 3,290,742 Parks 2,031,983 2,031,261 (722) 1,919,758 Unallocated general 291,265 340,510 49,245 251,215 Other 0 117,167 117,167 263,007 Capital outlay: General government 26,576 51,638 25,062 21,433 Public safety 437,484 334,523 (102,961) 326,379 Public works 472,704 431,291 (41,413) 509,513 Parks 94,300 104,058 9,758 113,557 Total expenditures 17,079,679 16,912,263 (167,416) 16,337,518 Excess (deficiency) of revenues over expenditures (400,000) 590,256 990,256 514,810 Other financing sources (uses): Operating transfers in (out) Liquor fund 400,000 0 (400,000) 400,000 Capital Project funds 0 (333,000) (333,000) (50,159) Edinborough Park/Centennial Lake 0 (1,600,000) (1,600,000) 0 HRA 0 254,858 254,858 0 Parkland dedication 0 331,466 331,466 65,561 Reserve for construction 0 0 0 800 Total other financing sources 400,000 (1,346,676) (1,746,676) 416,202 Excess of revenues and other financing sources over expenditures and other financing uses $ 0 (756,420) (756,420) 931,012 Fund balance - January 1 10,700,712 9,769,700 Fund Balance - December 31 $ 9,944,292 $ 10,700,712 Page 49 CITY OF EDINA, MINNESOTA General Fund Schedule of Revenues - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) Charges for service: Engineering 120,000 1997 (41,539) 1996 Assessing searches 0 430 Variance 780 Planning fees 13,000 18,593 Favorable 19,210 False alarms Budget Actual (unfavorable) Actual Taxes: 75,000 75,227 227 78,307 General property tax $ 12,281,244 12,136,817 (144,427) 11,763,898 Penalties and interest 10,000 (31,093) (41,093) (16,155) Total taxes 12,291,244 12,105,724 (185,520) 11,747,743 Licenses and permits 1,008,500 1,388,968 380,468 1,382,427 Intergovernmental: 84,000 87,764 3,764 91,816 Federal aid 8,000 17,000 9,000 8,000 State grants: 10,000 10,000 0 10,000 Homestead credit 932,635 956,224 23,589 917,820 State highway aid 140,000 140,000 0 140,000 Other 0 81,136 81,136 0 Police aid 260,000 311,044 51,044 334,424 County grants: Health programs 113,100 138,244 25,144 113,106 Total intergovernmental 1,453,735 1,643,648 189,913 1,513,350 Charges for service: Engineering 120,000 78,461 (41,539) 187,577 Assessing searches 0 430 430 780 Planning fees 13,000 18,593 5,593 19,210 False alarms 52,000 58,822 6,822 55,808 Police services 75,000 75,227 227 78,307 Hazmat fee 1,000 1,000 0 1,048 Housing and Redevelopment Authority 180,000 180,000 0 180,000 Charges to other funds 146,700 146,700 0 141,756 Ambulance service 720,000 900,309 180,309 821,600 Registration fee 84,000 87,764 3,764 91,816 Laboratory fees 14,000 10,246 (3,754) 10,010 Maint Assmt - 50th & France 10,000 10,000 0 10,000 Housing Foundation Contract 20,000 8,672 (11,328) 23,723 Total charges for service 1,435,700 1,576,224 140,524 1,621,635 Fines and forfeitures 395,000 - 562,910 167,910 456,589 Sale and rental of property 50,000 149,047 99,047 103,367 Other Revenues: Interest on investments 15,000 30,812 15,812 16,815 Donations 500 0 (500) 0 Other 30,000 45,186 15,186 10,402 Total other revenues 45,500 75,998 30,498 27,217 Total revenues $ 16,679,679 17,502,519 822,840 16,852,327 Page 50 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) Administration: Personal services 464,293 1997 (29,768) 1996 Contractual services 91,400 86,485 Variance 92,133 Commodities 950 3,295 Favorable 1,293 Central services Budget Actual (unfavorable) Actual General government: 9,375 31,250 (21,875) 6,041 Mayor and council: 702,638 751,711 (49,073) 677,858 Personal services $ 27,450 27,498 (48) 26,736 Contractual services 3,800 2,874 926 _ 3,175 Commodities 1,000 1,978 (978) 3,132 Central services 32,964 32,963 1 32,172 Total mayor and council 65,214 65,313 (99) 65,215 Administration: Personal services 464,293 494,061 (29,768) 446,571 Contractual services 91,400 86,485 4,915 92,133 Commodities 950 3,295 (2,345) 1,293 Central services 136,620 136,620 0 131,820 Capital outlay 9,375 31,250 (21,875) 6,041 Total administration 702,638 751,711 (49,073) 677,858 Planning: Personal services 193,816 191,109 2,707 180,873 Contractual services 4,990 3,729 1,261 4,483 Commodities 800 466 334 315 Central services 59,640 59,640 0 57,288 Capital outlay 5,000 5,404 (404) 0 Total planning 264,246 260,348 3,898 242,959 Finance: Personal services 271,957 270,517 1,440 263,548 Contractual services 61,300 67,460 (6,160) 47,874 Commodities 550 944 (394) 962 Central services 74,496 74,496 0 71,616 Capital outlay 6,701 4,175 2,526 12,493 Total finance 415,004 417,592 (2,588) 396,493 Election: Personal services 18,180 15,495 2,685 65,313 Contractual services 11,000 6,223 4,777 12,961 Commodities 2,000 139 1,861 7,543 Central services 11,496 11,496 0 11,040 Total election 42,676 33,353 9,323 96,857 (Continued) Page 51 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) Fire protection: Personal services 1,884,740 1997 (30,417) 1996 Contractual services 91,698 90,586 Variance 88,128 Commodities 47,162 71,983 Favorable 70,168 Central services Budget Actual (unfavorable) Actual Assessing 160,609 53,121 107,488 145,495 Personal services $ 302,068 304,239 (2,171) 292,291 Contractual services 38,400 56,363 (17,963) 41,834 Commodities 1,100 1,467 (367) 1,150 Central services 89,316 89,316 0 85,476 Capital outlay 5,500 10,809 (5,309) 2,899 Total assessing 436,384 462,194 (25,809) 423,650 Legal and court services: Contractual services 365,000 308,167 56,833 319,713 Total general government 2,291,162 2,298,678 (7,516) 2,222,745 Public Safety: Police protection: Personal services 3,165,027 3,003,296 161,731 2,892,071 Contractual services 182,136 186,528 (4,392) 171,644 Commodities 42,212 51,558 (9,346) 43,484 Central services 1,083,636 1,083,605 31 1,030,392 Capital outlay 246,538 260,516 (13,978) 179,863 Total police protection 4,719,549 4,585,503 134,046 4,317,454 Fire protection: Personal services 1,884,740 1,915,157 (30,417) 1,872,849 Contractual services 91,698 90,586 1,112 88,128 Commodities 47,162 71,983 (24,821) 70,168 Central services 530,676 530,676 0 508,080 Capital outlay 160,609 53,121 107,488 145,495 Total fire protection 2,714,885 2,661,523 53,362 2,684,720 Civil defense: Personal services 21,025 21,761 (736) 20,312 Contractual services 7,732 4,338 3,394 8,830 Commodities 1,151 990 161 157 Capital outlay 6,847 15,806 (8,959) 0 Total civil defense 36,755 42,895 (6,140) 29,299 (Continued) Page 52 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) Public Health: Personal services 153,830 1997 27,668 1996 Contractual services 155,485 162,006 Variance 150,105 Commodities 3,910 1,955 Favorable 5,770 Central services Budget Actual (unfavorable) Actual Animal control: 5,291 4,871 420 0 Personal services $ 35,697 25,692 10,005 19,216 Contractual services 6,790 12,010 (5,220) 7,616 Commodities 3,294 989 2,305 1,556 Central services 13,356 13,356 0 12,912 Capital outlay 5,976 0 5,976 0 Total animal control 65,113 52,047 13,066 41,300 Public Health: Personal services 153,830 126,162 27,668 143,762 Contractual services 155,485 162,006 (6,521) 150,105 Commodities 3,910 1,955 1,955 5,770 Central services 61,164 61,164 0 58,956 Capital outlay 5,291 4,871 420 0 Total public health 379,680 356,158 23,522 358,593 Inspections: Personal services 279,876 259,268 20,608 242,338 Contractual services 20,455 6,106 14,349 8,106 Commodities 4,509 3,692 817 3,053 Central services 84,456 84,456 0 81,096 Capital outlay 12,223 209 12,014 1,021 Total inspections 401,519 353,731 47,788 335,614 Total public safety 8,317,501 8,051,857 265,644 7,766,980 Public Works: Administration: Personal services 105,050 110,435 (5,385) 104,515 Contractual services 4,250 3,629 621 4,343 Central services 32,508 32,508 0 31,200 Total administration 141,808 146,572 (4,764) 140,058 Engineering: Personal services 340,068 298,674 41,394 267,575 Contractual services 20,017 21,255 (1,238) 33,007 Commodities 14,180 11,117 3,063 7,824 Central services 112,020 112,020 0 107,544 Capital outlay 54,924 47,934 6,990 58,479 Total engineering 541,209 491,000 50,209 474,429 (Continued) Page 53 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) Street Maintenance: Personal services 689,000 1997 1,806 1996 Contractual services 80,150 93,630 Variance 56,271 Commodities 392,500 280,992 Favorable 372,051 Central services Budget Actual (unfavorable) Actual Supervision and overhead: 1,635,230 1,535,396 99,834 1,572,849 Personal services $ 118,085 120,890 (2,805) 92,103 Contractual services 30,300 29,578 722 23,551 Commodities 1,000 1,295 (295) 510 Central services 401,076 401,076 0 382,452 Total supervision and overhead 550,461 552,839 (2,377) 498,616 Street Maintenance: Personal services 689,000 687,194 1,806 685,695 Contractual services 80,150 93,630 (13,480) 56,271 Commodities 392,500 280,992 111,508 372,051 Central services 473,580 473,580 0 458,832 Total street maintenance 1,635,230 1,535,396 99,834 1,572,849 Street lighting: Personal services 32,000 17,894 14,106 16,252 Contractual services 381,500 489,980 (108,480) 332,988 Commodities 18,000 3,264 14,736 6,264 Total street lighting 431,500 511,138 (79,638) 355,504 Street name signs: Personal services 34,000 28,965 5,035 29,467 Contractual services 500 373 127 0 Commodities 33,000 35,879 (2,879) 29,609 Total street name signs 67,500 65,217 2,283 59,076 Traffic control: Personal services 33,000 29,364 3,636 42,408 Contractual services 67,500 61,062 6,438 62,146 Commodities 19,000 18,039 961 18,200 Total traffic control 119,500 108,465 11,035 122,754 Bridges: Personal services 12,000 7,178 4,822 8,900 Contractual services 500 0 500 0 Commodities 5,000 2,186 2,814 3,556 Total bridges 17,500 9,364 8,136 12,456 (Continued) Page 54 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) (Continued) 1997 1996 Variance Favorable Budget Actual (unfavorable) Actual Retaining walls: Personal services $ 7,000 97 6,903 360 Contractual services 6,000 10,934 (4,934) 3,220 Commodities 6,000 0 6,000 3,989 Total retaining walls 19,000 11,031 7,969 7,569 Sidewalks and ramps: Personal services 33,780 56,732 (22,952) 43,900 Contractual services 54,500 48,221 6,279 43,765 Commodities 23,700 49,400 (25,700) 18,245 Total sidewalks and ramps 111,980 154,353 (42,373) 105,910 Other expenditures: Capital outlay 417,780 383,357 34,423 451,034 Total public works 4,053,468 3,968,732 84,736 3,800,255 Parks: Administration: Personal services 354,287 329,472 24,815 312,276 Contractual services 19,950 25,991 (6,041) 20,090 Commodities 17,850 15,235 2,615 6,102 Central services 107,712 107,712 0 103,500 Capital outlay 3,800 1,877 1,923 12,086 Total administration 503,599 480,287 23,312 454,054 Recreation: Athletic activities 9,320 9,517 (197) 11,662 Skating and hockey 37,725 48,979 (11,254) 42,983 Tennis instruction 11,700 12,818 (1,118) 8,943 Playground 27,200 24,308 2,892 24,275 Senior citizens 19,900 29,200 (9,300) 18,681 Miscellaneous and special activities 31,200 28,730 2,470 21,137 Total recreation 137,045 153,552 (16,507) 127,681 (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) 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 Building maintenance: Personal services Contractual services Commodities Total building maintenance W111i 86,000 79,925 Variance 1,038 1,400 Favorable Budget Actual (unfavorable) $ 80,035 81,123 (1,088) 6,500 3,803 2,697 0 109 (109) 385,704 385,704 0 472,239 470,739 1,500 86,000 79,925 0 1,038 1,400 2,890 87,400 83,853 106,000 147,000 193,323 16,700 6,502 34,300 28,547 198,000 228,372 89,000 103,780 38,900 18,092 18,400 9,058 146,300 130,930 13,000 17,721 6,300 4,196 7,200 8,098 26,500 30,015 106,000 114,223 119,800 119,741 50,200 42,344 276,000 276,308 6,075 (1,038) (1,490) 3,547 (46,323) 10,198 5,753 (30,372) (14,780) 20,808 9,342 15,370 (4,721) 2,104 (898) (3,515) (8,223) 59 7,856 (308) Page 55 1996 Actual 77,264 3,675 157 372,504 453,600 61,315 308 2,305 63.928 177,228 2,071 27,148 206,447 103,479 15,616 11,572 130,667 17,286 3,549 4,491 25,326 108,732 114,761 56,333 279,826 (Continued) CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) Paths and hard surfaces: Personal services Contractual services Commodities Total paths and hard surfaces 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 Fire Station debt service Total unallocated general expenditures Central services Total expenditures Page 56 1997 1996 Variance Favorable Budget Actual (unfavorable) Actual $ 13,000 9,029 3,971 15,985 50,000 53,385 (3,385) 46,720 9,000 1,834 7,166 8,644 72,000 64,248 7,752 71,349 113,000 110,786 2,214 116,594 3,700 4,048 (348) 2,373 116,700 114,834 1,866 118,967 1,395,139 1,399,299 (4,160) 1,350,110 90,500 102,181 (11,681) 101,471 2,126,283 2,135,319 (9,036) 2,033,316 66,200 65,218 982 61,715 18,965 63,601 (44,636) 17,865 29,000 15,890 13,110 18,842 7,600 7,600 0 7,350 70,000 93,866 (23,866) 135,944 7,500 6,654 846 5,499 4,000 4,000 0 4,000 88,000 83,681 4,319 0 291,265 340,510 (49,245) 251,215 0 117,167 (117,167) 263,007 $ 17,079,679 16,912,263 167,415 16,337,518 CITY OF EDINA, MINNESOTA General Fund Schedule of Central Services Expenditures - Budget and Actual Year ended December 31, 1997 (with comparative actual amounts for year ended December 31, 1996) General: Contractual services Commodities Capital outlay Total general City Hall: Personal services Contractual services Commodities Fixed charges Capital outlay 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 1997 Variance Favorable Budget Actual (unfavorable) $ 3,511,500 3,469,905 41,595 25,000 44,702 (19,702) 65,816 172,487 (106,671) 3,602,316 3,687,094 (84,778) 62,840 41,000 32,900 15,000 0 151,740 61,787 79,500 46,000 9,384 6,621 203,292 58,632 39,079 25,836 15,000 0 138,547 59,524 101,618 51,779 9,384 1,988 224.293 4,208 1,921 7,064 0 0 13.193 2,263 (22,118) (5,779) 0 4,633 (21,001) Page 57 1996 Actual 3,566,809 42,528 22,112 3,631,4495- 67,869 39,169 23,823 14,424 0 135,285 76,495 79,836 52,573 9,120 5,711 223,735 272,703 252,739 19,964 252,819 76,500 73,790 2,710 92,210 443,500 486,741 (43,241) 475,109 220,776 220,776 0 208,980 22,325 21,335 990 28,084 1,035,804 1,055,381 (19,577) 1,057,202 4,993,152 5,105,315 (112,163) 5,047,671 4,993,152 4,988,148 5,004 4,784,664 0 117,167 (117,167) 263,007 Page 58 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 funds 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 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Balance Sheet December 31, 1997 (with comparative totals for December 31, 1996) Community Development Block Grant Communications Page 59 Totals 1997 1996 $ 0 881,453 881,453 830,195 0 45 45 59,726 0 7,310 7,310 9,501 0 26,376 26,376 0 28,171 0 28,171 133,337 $ 28,171 915,184 943,355 1,032,759 22,286 30,540 52,826 40,082 0 1,229 1,229 1,123 5,885 0 5,885 208,187 0 0 0 78 0 911 911 1,296 28,171 32,680 60,851 250,766 Fund balance: Unreserved - undesignated 0 882,504 882,504 Total liabilities and fund balance $ 28,171 915,184 943,355 1,032,759 Page 60 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 1997 (with comparative totals for year ended December 31, 1996) Community Development Totals Block Grant Communications 1997 1996 Revenues: Franchise fees $ 0 331,527 331,527 224,489 Intergovernmental: Federal grants 182,507 0 182,507 210,590 Interest on investments 0 49,067 49,067 36,480 Total revenues 182,507 380,594 563,101 471,559 Expenditures: Current: Other: Personal services 6,084 63,815 69,899 66,353 Contractual services 176,423 174,754 351,177 393,397 Commodities 0 11,352 11,352 23,712 Fixed charges 0 22,524 22,524 21,588 Capital outlay 0 7,638 7,638 1,411 Total expenditures 182,507 280,083 462,590 506,461 Excess (deficiency) of revenues over expenditures 0 100,511 100,511 (34,902) Fund balance- January 1 0 781,993 781,993 816,895 Fund balance- December 31 $ 0 882,504 882,504 781,993 Page 61 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. Page 62 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Balance Sheet December 31, 1997 (with comparative totals for December 31, 1996) 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 0 132,819 132,819 168,632 0 2,546,912 2,546,912 2,631,338 0 2,679,731 2,679,731 2,799,970 18,166,594 1,298,113 19,464,707 21,119,943 0 0 647,981 18,166,594 1,298,113 19,464,707 21,767,924 Total liabilities and fund balance $ 18,166,594 3,977,844 22,144,438 24,567,894 General Improvement Debt Bond Totals Assets Service Redemption II 1997 1996 Cash & investments with fiscal agents $ 17,729,522 0 17,729,522 20,883,343 Accounts receivable 0 31,427 31,427 47,742 Special assessments receivable: Delinquent 0 1,557 1,557 11,201 Current 0 13,999 13,999 438,322 Deferred 0 2,532,910 2,532,910 2,181,815 Bloomington 0 132,733 132,733 144,800 Taxes Receivable: Delinquent 5,907 0 5,907 0 Allowance for uncollectible taxes (5,907) 0 (5,907) 0 Due from other funds 433,237 1,265,218 1,698,455 200,000 Advance to other funds 0 0 0 647,981 Due from other governments 3,835 0 3,835 12,690 Total assets $ 18,166,594 3,977,844 22,144,438 24,567,894 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 0 132,819 132,819 168,632 0 2,546,912 2,546,912 2,631,338 0 2,679,731 2,679,731 2,799,970 18,166,594 1,298,113 19,464,707 21,119,943 0 0 647,981 18,166,594 1,298,113 19,464,707 21,767,924 Total liabilities and fund balance $ 18,166,594 3,977,844 22,144,438 24,567,894 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 1997 (with comparative totals for year ended December 31, 1996) Revenues: Taxes Special assessments Interest on funds held with fiscal agent Expenditures: Current: Other Debt service: Bond principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenue over expenditures Other financing sources (uses): Operating transfer in: HRA Proceeds of refunding bonds Payment to refunded bond escrow agent Payment for refunded bonds 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 Page 63 General Improvement Debt Bond Totals Service Redemption 11 1997 1996 $ 666,072 0 666,072 0 0 840,238 840,238 806,292 1,038,850 0 1,038,850 1,175,976 1,704,922 840,238 2,545,160 1,982,268 0 2,281 2,281 3,083 1,935,000 185,000 2,120,000 1,400,000 4,463,523 39,425 4,502,948 4,881,475 6,398,523 226,706 6,625,229 6,284,558 (4,693,601) 613,532 (4,080,069) (4,302,290) 4,856,852 0 4,856,852 4,243,252 5,000,000 0 5,000,000 10,050,000 0 0 0 (10,050,000) (8,080,000) 0 (8,080,000) (15,815,000) 1,776,852 0 1,776,852 (11,571,748) (2,916,749) 613,532 (2,303,217) (15,874,038) 21,083,343 684,581 21,767,924 37,641,962 $ 18,166,594 1,298,113 19,464,707 21,767,924 Page 64 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 Cash Investments Accounts receivable Accrued interest receivable Special assessments receivable: Delinquent Deferred Taxes receivable Loan receivable Due from other funds Advance to other funds Due from other governments Total assets Liabilities and Fund Balance Liabilities: Accounts payable Salaries payable Contracts payable Due to other funds Due to other governments Deposits payable Taxes payable Deferred revenue Total liabilities Fund balance(deficit): Reserved for encumbrances Reserved for special projects Reserved for advances to other funds Unreserved - undesignated Total fund balance (deficit) Page 65 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Balance Sheet 42,500 December 31, 1997 74,466 57,857 258,888 (with comparative totals for December 31, 1996) 92 0 0 906 Housing and 1,158 7,883 26,713 180,643 8,870 Redevelopment 107,152 4,867,582 1,645,896 722,817 258,391 Authority of Park 0 Totals 0 Construction Edina Improvements Revolving 1997 1996 $ 0 18,279 0 0 18,279 150,185 0 17,243,056 1,635,831 6,917,539 25,796,426 24,794,529 8,099 0 9,798 2,819 20,716 160,194 0 101,998 5,880 29,738 137,616 272,730 0 0 0 2,397 2,397 1,369 0 0 0 98,439 98,439 99,390 0 46,046 0 103 46,149 0 0 0 0 0 0 1,616,446 0 0 0 0 0 907,733 0 0 0 0 0 272,550 0 0 0 326 326 182 $ 8,099 17,409,379 1,651,509 7,051,361 26,120,348 28,275,308 42,500 84,065 74,466 57,857 258,888 324,288 92 0 0 906 998 1,158 7,883 26,713 180,643 8,870 224,109 107,152 4,867,582 1,645,896 722,817 258,391 7,494,686 4,579,277 0 0 0 36 36 650 0 0 0 0 0 219,838 0 1,488,691 0 0 1,488,691 0 0 0 0 100,836 100,836 100,759 4,918,057 3,245,365 977,926 426,896 9,568,244 5,333,122 73,005 0 30,014 0 103,019 1,475,452 0 0 0 78,342 78,342 78,342 0 0 0 0 0 272,550 (4,982,963) 14,164,014 643,569 6,546,123 16,370,743 21,115,842 (4,909,958) 14,164,014 673,583 6,624,465 16,552,104 22,942,186 Total liabilities and fund balance $ 8,099 17,409,379 1,651,509 7,051,361 26,120,348 28,275,308 Page 66 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Revenues: Tax increments Special assessments Intergovernmental Charges for services Interest on investrnents Rental of property Other revenues Total revenues Expenditures: Current Other. Personal services Professional fees Other Construction costs Total expenditures Excess (deficiency) of revenues over expenditures Nonoperating revenues: Donations Total nonoperating revenues Income before operating transfers Other financing sources (uses): Operating transfers in (out): General fund General debt service fund Capital leases Proceeds from sale of bonds Total other financing sources (uses) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses Fund balance (deficit) -January 1 Year ended December 31, 1997 (with comparative totals for year ended December 31, 1996) 0 Housing and 222,103 69,159 471,262 340,564 0 Redevelopment 323,127 34,962 461,984 515,499 0 Authority of Park 36,121 Totals 163,120 Construction Edina Improvements Revolving 1997 1996 $ 0 4,881,825 0 0 4,881,825 4,341,962 0 0 0 114,968 114,968 163,176 170,589 0 0 0 170,589 626,468 1,266,699 0 0 0 1,266,699 1,577,944 0 748,685 269,676 101,011 1,119,372 896,834 0 0 0 3,351 3,351 4,744 0 46,707 132 98,629 145,468 281,616 1,437,288 5,677,217 269,808 317,959 7,702,272 7,892,744 0 180,000 222,103 69,159 471,262 340,564 0 103,895 323,127 34,962 461,984 515,499 0 53,980 0 36,121 90,101 163,120 1,647,485 7,321,467 6,598,274 300,450 15,867,676 4,055,972 1,647,485 7,659,342 7,143,504 440,692 16,891,023 5,075,155 (210,197) (1,982,125) (6,873,696) (122,733) (9,188,751) 2,817,589 0 0 0 4,025 4,025 19,654 0 0 0 4,025 4,025 19,654 (210,197) (1,982,125) (6,873,696) (118,708) (9,184,726) 2,837,243 0 (254,858) 333,000 0 78,142 50,159 0 (4,856,852) 0 0 (4,856,852) (4,243,252) 0 0 0 0 0 650,000 0 7,573,354 0 0 7,573,354 8,042,433 0 2,461,644 333,000 0 2,794,644 4,499,340 (210,197) 479,519 (4,699,761) 13,684,495 (6,540,696) 7,214,279 (118,708) (6,390,082) 7,336,583 6,743,173 22,942,186 15,605,603 Fund balance (deficit) - December 31 $ (4,909,958) 14,164,014 673,583 6,624,465 16,552,104 22,942,186 Page 67 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. CITY OF EDINA, MINNESOTA Enterprise Funds Combining Balance Sheet December 31, 1997 (with comparative totals for December 31, 1996) Assets Current assets: Petty cash and change funds $ Investments Cash with fiscal agents Receivables: Accounts Customers Interest Special Assessments Taxes Due from other funds Due from other governments Inventory Total current assets 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 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 Unreserved- undesig nated Total retained earnings (deficit) Total liabilities and fund equity Utilities Liquor Page 68 Swimming Pool 0 4,340 0 0 0 0 0 0 0 127 2,117,545 0 22,153 236 806,728 0 21,742 2,968,531 823,480 22,226,551 1,669 $ 26,020,231 158,166 14,844 24,145 16,336 0 299,522 33,675 546,688 0 0 0 0 820,000 820,000 1,366,688 1,744 0 0 0 0 21,168 0 826,278 853,530 773,267 703,429 0 2,330,226 412,121 17,050 0 0 0 87,914 13,171 530,256 0 0 0 0 0 0 530,256 0 0 274,998 0 0 0 24,378,545 1,799,970 24,653,543 1,799,970 $ 26,020,231 2,330,226 0 0 0 0 0 49,265 0 0 49,265 0 2,249,263 5,334 2,303,862 412 0 0 18,073 0 0 0 18,485 0 0 0 0 632,750 632,750 651,235 1,749,152 32,500 0 (129,025) (96,525) 2,303,862 Page 69 Golf Gun Art Edinborough Park Totals Course Arena Range Center Centennial Lake 1997 1996 4,000 700 0 225 1,500 10,765 8,665 0 0 0 10,266 0 10,266 0 2,179,712 1,814,257 0 0 643 3,994,612 4,040,581 13,698 152,722 0 0 367 168,658 109,626 0 0 0 0 0 2,117,545 2,089,453 0 0 0 0 53,610 53,610 69,673 0 0 0 0 0 22,153 20,627 0 0 0 0 0 236 0 0 0 0 643 22,210 900,014 81,541 0 0 0 0 0 0 3,757 56,186 0 0 9,157 0 913,363 797,606 2,253,596 1,967,679 0 20,291 78,330 8,191,222 7,221,529 0 0 0 0 0 1,596,747 1,790,884 7,832,811 5,229,562 0 198,327 974,977 39,414,920 33,833,148 46,173 12,655 0 0 0 65,831 80,787 10,132,580 7,209,896 0 218,618 1,053,307 49,268,720 42,926,348 70,533 40,205 0 13,409 27,845 722,691 456,082 15,930 10,751 0 3,023 15,128 76,726 57,162 0 0 0 0 0 24,145 9,788 245,357 114,740 0 0 0 394,506 407,858 200,000 50,000 0 0 0 250,000 469,815 5,352 .8,359 0 463 1,347 402,957 113,289 37,961 15,573 0 4,835 25,093 130,308 123,536 575,133 239,628 0 21,730 69,413 2,001,333 1,637,530 2,670 3,500 0 0 0 6,170 10,151 0 5,040 0 0 0 5,040 29,441 773,267 823,480 0 0 0 1,596,747 2,711,415 28,800 259,200 0 0 72,000 360,000 405,000 8,097,525 3,639,725 0 0 0 13,190,000 13,875,000 8,902,262 4,730,945 0 0 72,000 15,157,957 17,031,007 9,477,395 4,970,573 0 21,730 141,413 17,159,290 18,668,537 0 3,578,158 0 9,519 759,782 6,096,611 628,981 1,115,031 184,591 0 0 0 1,607,120 1,607,120 0 0 0 750 0 750 750 (459,846) (1,523,426) 0 186,619 152,112 24,404,949 22,020,960 655,185 (1,338,835) 0 187,369 152,112 26,012,819 23,628,830 10,132,580 7,209,896 0 218,618 1,053,307 49,268,720 42,926,348 Page 70 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) December 31, 1997 (with comparative totals for December 31, 1996) Swimming Utilities Liquor Pool Sales and cost of sales: Sales $ 0 7,426,218 0 Cost of sales 0 5,607,325 0 Gross profit 0 1,818,893 0 Operating revenues: Charges for services 8,092,634 0 276,372 Total gross profit and operating revenues 8,092,634 1,818,893 276,372 Operating expenses: Disposal charges 3,715,800 0 0 Personal services 810,107 623,392 124,320 Contractual services 1,405,463 173,356 37,331 Commodities 425,176 30,742 32,414 Central services 396,096 224,580 10,584 Depreciation 771,851 45,568 103,005 Total operating expenses 7,524,493 1,097,638 307,654 Operating income (loss) 568,141 721,255 (31,282) Nonoperating revenues (expenses): Interest on investments 0 0 0 Donations 0 0 0 Miscellaneous revenue (expense) 0 (185) (262) Interest from fiscal agent 0 0 0 Interest and fiscal charges (40,744) 0 (36,764) Interest on capital lease 0 0 0 Gain (loss) on sale of fixed assets 18,110 (412) (95,649) Amortization of bond discount (1,540) 0 (356) Total nonoperating revenues (expenses) (24,174) (597) (133,031) Income (loss) before operating transfers 543,967 720,658 (164,313) Operating transfers in (out): General fund 0 0 0 Art center fund 0 (67,000) 0 Liquor store fund 0 0 0 Arena fund 0 (100,000) 0 Gun Range 0 (22,408) 0 Edinborough Park/Centennial Lake 0 (25,000) 0 Total operating transfers, net 0 (214,408) 0 Net income (loss) 543,967 506,250 (164,313) Add depreciation on contributed assets 0 0 48,267 Increase (decrease) in retained earnings 543,967 506,250 (116,046) Retained earnings (deficit) - January 1 24,109,576 1,293,720 19,521 Residual equity transfer out 0 0 0 Retained earnings (deficit) - December 31 $ 24,653,543 1,799,970 (96,525) Golf Gun Art Course Arena Range Center 0 0 0 0 0 0 0 0 0 0 0 0 Edinborough Park Centennial Lake 0 0 0 Page 71 Totals 1997 1996 7,426,218 6,399,235 5,607,325 4,813,865 1,818,893 1,585,370 3,170,255 880,691 10,270 240,018 605,348 13,275,588 12,608,639 3,170,255 880,691 10,270 240,018 605,348 15,094,481 14,194,009 0 0 0 0 0 3,715,800 3,423,248 1,155,529 317,737 10,207 240,701 673,461 3,955,454 3,715,083 396,333 264,574 3,947 32,427 296,927 2,610,358 2,403,736 253,510 64,931 979 35,192 143,966 986,910 936,244 200,760 57,996 2,520 23,220 153,408 1,069,164 1,031,551 516,927 216,544 2,395 20,017 103,414 1,779,721 1,662,373 2,523,059 921,782 20,048 351,557 1,371,176 14,117,407 13,172,235 647,196 (41,091) (9,778) (111,539) (765,828) 977,074 1,021,774 0 0 0 0 374,217 374,217 424,425 0 3,000 0 31,102 0 34,102 14,479 0 0 0 7,003 0 6,556 7,575 109,884 73,040 0 0 0 182,924 219,459 (494,542) (231,105) 0 0 0 (803,155) (826,818) (1,581) (14,228) 0 0 (3,952) (19,761) (21,629) (68,344) 0 (1,062) 0 (6,710) (154,067) 32,531 (8,583) (4,477) 0 0 0 (14,956) (14,956) (463,166) (173,770) (1,062) 38,105 363,555 (394,140) (164,934) 184,030 (214,861) (10,840) (73,434) (402,273) 582,934 856,840 0 0 0 0 1,600,000 1,600,000 (400,000) 0 0 0 0 0 (67,000) (95,000) 0 100,000 22,408 67,000 25,000 214,408 100,000 0 0 0 0 0 (100,000) 0 0 0 0 0 0 (22,408) (5,000) 0 0 0 0 0 (25,000) 0 0 100,000 22,408 67,000 1,625,000 1,600,000 (400,000) 184,030 (114,861) 11,568 (6,434) 1,222,727 2,182,934 456,840 0 87,228 0 501 78,078 214,074 70,725 184,030 (27,633) 11,568 (5,933) 1,300,805 2,397,008 527,565 471,155 (1,311,202) 1,451 193,302 (1,148,693) 23,628,830 23,101,265 0 0 (13,019) 0 0 (13,019) 0 655,185 (1,338,835) 0 187,369 152,112 26,012,819 23,628,830 Cash flows from capital financing activities Net acquisition of capital assets Gain poss) on sale of foxed 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) provided for capital financing activities Cash flows from investing activities (Increase) decrease In interest receivable Interest on investments Net cash provided by investing activities Net decrease in cash and cash equivalents Cash and equivalents, beginning of year Cash and equivalents, end of year Supplemental disclosure of noncash noncapital financing activity: Donation of investments Contribution of fixed assets Total noncash noncapital financing activity (1,043,821) (71,648) 44,703 (439,075) Page 72 CITY OF EDINA, MINNESOTA (95,649) (68,344) (390,000) 0 Enterprise Funds (265,750) 0 0 0 Combining Statement of Cash Flows 0 0 0 109,884 December 31, 1997 0 0 (1,581) (40,744) (with comparative totals for December 31, 1996) (36,764) (494,542) (1,456,455) (72,060) (97,710) (1,163,008) Swimming Golf Cash flows from operating activities: Utilities Liquor Pool Course Operating income $ 568,141 721,255 (31,282) 647,196 Adjustments to reconcile operating income 0 700 (0) (17,381) to net cash provided by operating activities 3,640 0 2,201,093 $ 0 Depreciation expense 771,851 45,568 103,005 516,927 Changes in assets and liabilities: 0 0 0 0 (Increase) decrease in accounts receivable 3,106 359 35 15,524 (Increase) decrease in customer accounts receivable (28,092) 0 0 0 Increase in special assessments receivable (1,526) 0 0 0 Increase in taxes receivable (236) 0 0 0 Decrease in due from other governments 3,757 0 0 0 (increase) decrease in inventory (4,512) (113,787) 0 2,635 Decrease in prepaid expenses 0 0 0 0 Increase (decrease) in accounts payable 2,672 214,588 305 25,456 Increase in salaries payable 2,488 1,303 0 3,980 Increase in contracts payable 14,357 0 0 0 Increase (decrease) in accrued interest payable (7,216) 0 199 (5,958) Increase (decrease) in due to other governments 289,395 (9,863) 0 2,721 Increase (decrease) in compensated absences payable 2,922 (3,895) 0 2,630 Decrease in deposits payable 0 0 0 (3,981) Increase (decrease) in deferred revenue (19,808) 0 0 (4,593) Increase (decrease) in due from other funds (806,728) (21,168) (49,265) 0 Increase (decrease) in due to other funds 0 0 0 0 Total adjustments 222,430 113,105 54,279 555,341 Net cash provided by operating activities 790,571 834,360 22,997 1,202,537 Cash flows from noncapital financing activities: Donations 0 0 0 0 Miscellaneous revenue (expense) 0 (185) (262) 0 Increase (decrease) in advance to other funds 665,884 (547,007) 74,975 0 Increase (decrease) in advance from other funds 0 0 0 (56,910) Decrease in reserve for construction 0 0 0 0 Operating transfer in (out )-General Fund 0 0 0 0 Operating transfer (out)-Art Center 0 (67,000) 0 0 Operating transfer in- liquor Store Fund 0 0 0 0 Operating transfer (out) -Arena 0 (100,000) 0 0 Operating transfer (out) -Gun Range 0 (22,408) 0 0 Operating transfer (out )-Edinborough Park 0 (25,000) 0 0 Residual equity transfer out 0 0 0 0 Net cash (used) provided for noncapital financing activities 665,884 (761,600) 74,713 (56,910) Cash flows from capital financing activities Net acquisition of capital assets Gain poss) on sale of foxed 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) provided for capital financing activities Cash flows from investing activities (Increase) decrease In interest receivable Interest on investments Net cash provided by investing activities Net decrease in cash and cash equivalents Cash and equivalents, beginning of year Cash and equivalents, end of year Supplemental disclosure of noncash noncapital financing activity: Donation of investments Contribution of fixed assets Total noncash noncapital financing activity (1,043,821) (71,648) 44,703 (439,075) 18,110 (412) (95,649) (68,344) (390,000) 0 (10,000) (265,750) 0 0 0 (3,600) 0 0 0 109,884 0 0 0 (1,581) (40,744) 0 (36,764) (494,542) (1,456,455) (72,060) (97,710) (1,163,008) 0 0 0 0 0 0 0 0 0 0 0 0 0 700 (0) (17,381) 0 3,640 0 2,201,093 $ 0 4,340 (0) 2,183,712 $ 0 0 0 0 0 0 1,797,419 0 0 0 1,797,419 0 Page 73 Gun Art Edinborough Park Totals Arena Range Center Centennial Lake 1997 1996 (41,091) (9,778) (111,539) (765,828) 977,074 1,021,774 216,544 2,395 20,017 103,414 1,779,721 1,662,373 (78,044) 0 0 (12) (59,032) 133,898 0 0 0 0 (28,092) 22,349 0 0 0 0 (1,526) (18,868) 0 0 0 0 (236) 0 0 0 0 0 3,757 3,692 0 0 (93) 0 (115,757) (173,842) 0 0 0 0 0 288,506 27,364 (1,162) 3,868 (6,482) 266,609 77,100 5,484 0 1,519 4,790 19,564 13,522 0 0 0 0 14,357 9,788 (377) 0 0 0 (13,352) (45,417) 7,512 (32) (107) 42 289,668 (12,915) 1,514 0 355 3,246 6,772 14,467 0 0 0 0 (3,981) (6,125) 0 0 0 0 (24,401) 13,910 0 0 0 59,331 (817,830) (8,678) 0 (13,831) (643) (205,984) (220,458) 171,602 179,997 (12,630) 24,916 (41,655) 1,095,783 2,145,362 138,906 (22,408) (86,623) (807,483) 2,072,857 3,167,136 3,000 0 20,836 0 23,836 14,479 0 0 7,003 0 6,556 7,575 0 0 285 0 194,137 302,309 69,474 0 0 (1,127,232) (1,114,668) (69,795) 0 0 0 0 0 (750) 0 0 0 1,600,000 1,600,000 (400,000) 0 0 0 0 (67,000) (95,000) 100,000 22,408 67,000 25,000 214,408 100,000 0 0 0 0 (100,000) 0 0 0 0 0 (22,408) (5,000) 0 0 0 0 (25,000) 0 0 (13,019) 0 0 (13,019) 0 172,474 9,389 95,124 497,768 696,842 (146,182) (114,827) 14,081 (8,501) (60,701) (1,679,789) (2,212,299) 0 (1,062) 0 (6,710) (154,067) 32,531 (19,250) 0 0 0 (685,000) (1,170,000) (32,400) 0 0 (9,000) (45,000) (45,000) 73,040 0 0 0 182,924 219,459 (231,105) 0 0 (3,952) (236,638) (238,346) (14,228) 0 0 0 (586,278) (610,102) (338,770) 13,019 (8,501) (80,363) (3,203,848) (4,023,757) 0 0 0 16,063 16,063 (747) 0 0 0 374,217 374,217 424,425 0 0 0 390,280 390,280 423,678 (27,390) 0 0 202 (43,869) (579,125) 1,842,347 0 225 1,941 4,049,246 4,628,371 1,814,957 0 225 2,143 4,005,377 4,049,246 0 0 10,266 0 10,266 0 3,665,386 0 10,020 208,879 5,681,704 0 3,665,386 0 20,286 208,879 5,691,970 0 Page 74 CITY OF EDINA, MINNESOTA Utilities Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) Assets Current assets: Receivables: Accounts Customers Assessments Taxes Due from other funds Due from other governments Inventory 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 Un reserved — undesignated Total retained earnings 1997 1996 $ 127 2,117,545 22,153 236 806,728 0 21,742 2,968,531 823,480 22,226,551 1,669 3,233 2,089,453 20,627 0 0 3,757 17,230 2,134,300 1,489,364 21,954,581 3,209 $ 26,020,231 25,581,454 158,166 14,844 24,145 16,336 299,522 33,675 546,688 0 820,000 1,366,688 274,998 24,378,545 24,653,543 155,494 12,356 9,788 23,552 10,127 30,753 242,070 19,808 1,210,000 1,471,878 274,998 23,834,578 24,109,576 Total liabilities and retained earnings $ 26,020,231 25,581,454 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) Operating revenues: Storm sewer charges Water charges Sewer charges Recycling Sale of meters 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 1997 $ 571,312 2,235,487 4,627,618 536,330 15,946 105,941 8,092,634 3,715,800 102,672 80,149 100,776 252,934 447,026 206,379 56,469 102,425 54,371 51,454 7,938 2,335 71,074 115,767 50,843 256,691 146,960 6,322 18,813 505,198 4,150 396,096 771,851 7,524,493 1996 508,895 2,165,924 4,410,522 506,282 15,734 139,803 7,747,160 3,423,248 105,839 79,087 94,207 251,286 387,670 214,711 53,922 79,712 65,848 56,915 3,731 6,805 45,848 57,200 26,351 236,873 208,591 6,516 19,147 480,534 557 379,968 721,187 7,005,753 Page 75 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 1997 1996 Operating income $ 568,141 741,407 Nonoperating revenues (expenses): Interest and fiscal charges Gain from sale of fixed assets Amortization of bond discount Total nonoperating expenses Net income Retained eamings— January 1 Retained eamings — December 31 (40,744) (52,018) 18,110 5,856 (1,540) (1,540) (24,174) (47,702) 543,967 693,705 24,109,576 23,415,871 $ 24,653,543 24,109,576 Page 76 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended year ended December 31,1996) 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: Decrease in accounts receivable (Increase) decrease in customer accounts receivable Increase in assessments receivable Increase in taxes receivable Decrease in due from other governments (Increase) in inventory Decrease in prepaid expenses Increase in accounts payable Increase (decrease) in salaries payable Increase in contracts payable (Decrease) in accrued interest payable Increase (decrease) in due to other governments Increase in compensated absences payable Increase (decrease) in deferred revenue Decrease in due from other funds Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Decrease in advance to other funds Net cash 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 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 Cash and cash equivalents, end of year Page 77 1997 1996 $ 568,141 741,407 771,851 721,187 3,106 894 (28,092) 22,349 (1,526) (18,868) (236) 0 3,757 448 (4,512) (733) 0 288,506 2,672 27,766 2,488 (3,462) 14,357 9,788 (7,216) (11,922) 289,395 (37,821) 2,922 2,828 (19,808) 19,808 (806,728) 0 222,430 1,020,768 790,571 1,762,175 665,884 336,135 665,884 336,135 (1,043,821) 18,110 (390,000) (40,744) (1,456,455) 0 0 0 (1,682,147) 5,856 (370,000) (52,019) (2,098,310) 0 0 0 CITY OF EDINA, MINNESOTA Liquor Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) Assets 1997 Current assets: Petty cash and change funds Accounts receivable Due from other funds 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: Unreserved — undesignated Total liabilities and retained earnings 1996 $ 4,340 3,640 1,744 2,103 21,168 0 826,278 712,491 853,530 718,234 773,267 703,429 226,260 677,349 $ 2,330,226 1,621,843 412,121 17,050 87,914 13,171 530,256 1,799,970 $ 2,330,226 197,533 15,747 97,777 17,066 328,123 1,293,720 1,621,843 Page 78 Page 79 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1997 (with comparative totals for year ended December 31, 1996) Operating expenses: Selling 1997 171,492 126,760 1996 50th Street Yorkdale Vernon Totals Totals Sales $ 1,565,839 3,325,449 2,534,930 7,426,218 6,399,235 Cost of sales 1,173,723 2,510,053 1,923,549 5,607,325 4,813,865 Gross profit 392,116 815,396 611,381 1,818,893 1,585,370 Operating expenses: Selling 102,649 171,492 126,760 400,901 347,229 Occupancy 39,030 56,908 32,824 128,762 126,402 Administrative 154,831 225,038 188,106 567,975 516,279 Total operating expenses 296,510 453,438 347,690 1,097,638 989,910 Operating income 95,606 361,958 263,691 721,255 595,460 Nonoperating revenues (expenses): Miscellaneous expense 235 374 (794) (185) (612) Loss on sale of fixed assets 0 0 (412) (412) 0 Total nonoperating revenues (expenses) 235 374 (1,206) (597) (612) Income before operating transfer out Operating transfer out: General Fund Operating transfer out: Art Center Operating transfer out: Gun Range Operating transfer out: Arena Operating transfer out: Edinborough Park Net income Retained eamings - January 1 $ 95,841 362,332 262,485 720,658 594,848 0 (400,000) (67,000) (95,000) (22,408) (5,000) (100,000) 0 (25,000) 0 (214,408) (500,000) 506,250 94,848 1,293,720 1,198,872 Retained eamings- December 31 $ 1,799,970 1,293,720 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 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 in inventory Increase in accounts payable Increase in salaries payable Increase (decrease) in due to other governments Increase (decrease) in compensated absences payable Increase in due from other funds 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 Operating transfer (out) —Arena Operating transfer (out) — Edinborough Park Net cash used by noncapital financing activities Cash flows from capital financing activities: Acquisition of capital assets Loss on sale of fixed assets 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 80 1997 1996 721,255 595,460 45,568 359 (113,787) 214,588 1,303 (9,863) (3,895) (21,168) 113,105 834,360 46,401 (9) (153,894) 65,562 8,602 27,363 3,119 0 (2,856) 592,604 (185) (612) (547,007) 21,139 0 (400,000) (67,000) 0 (22,408) 0 (100,000) (95,000) (25,000) (5,000) (761,600) (479,473) (71,648) (113,131) (412) 0 (72,060) (113,131) 700 0 3,640 3,640 $ 4,340 3,640 Page 81 CITY OF EDINA, MINNESOTA Liquor Fund Schedule of Operating Expenses Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) Occupancy: Personal services 1,214 3,645 3,088 Totals 5,422 Contractual services: 50th Street Yorkdale Vernon 1997 1996 Selling: $ 11,841 0 11,841 1,192 Personal services 94,818 156,642 118,333 369,793 305,478 Contractual services 853 1,789 1,682 4,324 3,602 Direct promotion 3,443 2,757 3,987 10,187 19,155 Commodities 4,388 12,093 4,440 20,921 22,596 Total selling 102,649 171,492 126,760 400,901 347,229 Occupancy: Personal services 1,214 3,645 3,088 7,947 5,422 Contractual services: Professional services 0 11,841 0 11,841 1,192 Burglar alarm 1,415 477 357 2,249 931 Heat 853 1,789 1,682 4,324 3,602 Laundry and rug service 496 3,088 330 3,914 3,125 Light and power 10,685 9,614 8,471 28,770 38,509 Maintenance, renting and cooling 293 709 49 1,051 609 Repair and maintenance 3,115 1,067 431 4,613 4,208 Rubbish hauling 740 450 789 1,979 2,408 Telephone 3,309 3,397 2,798 9,504 10,202 Water and sewer service 146 152 147 445 598 Commodities 2,386 1,784 2,387 6,557 9,195 Depreciation 14,378 18,895 12,295 45,568 46,401 Total occupancy 39,030 56,908 32,824 128,762 126,402 Administrative: Personal services 76,210 93,574 75,868 245,652 235,981 Contractual services: Data processing 1,938 2,928 2,238 7,104 5,432 Mileage 0 2,006 0 2,006 1,950 Professional service 18,672 35,294 28,230 82,196 46,724 Miscellaneous 1,814 854 505 3,173 7,100 Commodities 1,477 982 805 3,264 1,628 Central services 54,720 89,400 80,460 224,580 217,464 Total administrative 154,831 225,038 188,106 567,975 516,279 $ 296,510 453,438 347,690 1,097,638 989,910 Page 82 CITY OF EDINA, MINNESOTA Swimming Pool Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) Assets Current assets: Accounts receivable Due from other funds Total current assets 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 Fund equity: Contributed capital Retained earnings: Reserved for debt service Unreserved — undesignated Total retained earnings (deficit) 1997 $ 0 49,265 49,265 0 2,249,263 5,334 $ 2,303,862 412 18,073 18,485 1996 35 0 35 74,975 599,553 5,689 680,252 107 17,874 17,981 632,750 642,750 651,235 660,731 1,749,152 32,500 (129,025) (96,525) 0 32,500 (12,979) 19,521 Total liabilities and fund equity $ 2,303,862 680,252 Page 83 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 1997 1996 Operating revenues: Season tickets $ 153,712 190,142 General admissions 71,389 92,258 Rentals and instruction programs 10,042 9,730 Registration 24,250 32,160 Concessions (less cost of goods sold) 16,979 31,803 Total operating revenues 276,372 356,093 Operating expenses: Personal services 124,320 131,787 Contractual services 37,331 57,143 Commodities 32,414 17,706 Central services 10,584 10,068 Depreciation 103,005 55,428 Total operating expenses 307,654 272,132 Operating income (loss) (31,282) 83,961 Nonoperating expenses: Miscellaneous expense (262) 0 Interest and fiscal charges (36,764) (36,481) Loss on sale of fixed assets (95,649) 0 Bond discount amortization (356) (356) Total nonoperating expenses (133,031) (36,837) Net income (loss) (164,313) 47,124 Add depreciation on contributed assets 48,267 0 Increase (decrease) in retained earnings (116,046) 47,124 Retained earnings (deficit) — January 1 19,521 (27,603) Retained earnings (deficit) — December 31 $ (96,525) 19,521 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 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 accounts payable Increase (decrease) in accrued interest payable Increase in due from other funds Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Miscellaneous expense (Increase) decrease in advance to other funds Net cash used by noncapital financing activities Cash flows from capital financing activities: Net acquisition of capital assets Loss on sale of fixed 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 Page 84 1997 1996 $ (31,282) 83,961 103,005 35 305 199 (49,265) 54,279 22,997 (262) 74,975 74,713 44,703 (95,649) (10,000) (36,764) (97,710) (0) 0 Cash and cash equivalents, end of year $ (0) 55,428 (35) (4,233) (615) 0 50,545 134,506 0 (54,680) (54,680) (36,095) 0 (7,250) (36,481) (79,826) 0 Page 85 CITY OF EDINA, MINNESOTA Golf Course Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) Assets Current assets: Petty cash and change funds Cash with fiscal agents Accounts receivable 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 - undesignated Total retained earnings 1997 $ 4,000 2,179,712 13,698 56,186 2,253,596 1996 2,600 2,198,493 29,222 58,821 2,289,136 7,832,811 7,910,663 46,173 54,756 $ 10,132,580 10,254,555 70,533 15,930 245,357 200,000 5,352 37,961 575,133 2,670 0 773,267 28,800 8,097,525 9,477,395 1,115,031 (459,846) 655,185 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 Total liabilities and retained earnings $ 10,132,580 10,254,555 Page 86 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) Operating expenses: Administration 1997 1996 Operating revenues: 128,433 155,620 Greens fees $ 1,627,618 1,538,402 Golf cars 183,488 212,153 Other rental fees 132,325 82,376 Patron cards 141,546 133,516 Concessions (less cost of goods sold) 151,108 158,662 Range 312,308 290,647 Dome 472,670 370,476 Lessons 74,212 72,906 Pro Shop (less cost of goods sold) 66,634 88,709 Other 8,346 14,563 Total operating revenues 3,170,255 2,962,410 Operating expenses: Administration 701,241 665,064 Building -club house 128,433 155,620 Maintenance of course and grounds 523,209 524,491 Range and grill 216,731 212,944 Dome 245,341 218,908 Richards 133,898 98,394 Pro Shop 57,279 72,499 Depreciation 516,927 563,841 Total operating expenses 2,523,059 2,511,761 Operating income 647,196 450,649 Nonoperating revenues (expenses): Interest from fiscal agent 109,884 122,898 Interest and fiscal charges (494,542) (506,029) Interest on capital lease (1,581) (1,730) Gain (loss) on sale of fixed assets (68,344) 26,675 Amortization of bond discount (8,583) (8,583) Total nonoperating revenues(expenses) (463,166) (366,769) Net income 184,030 83,880 Retained eamings - January 1 471,155 387,275 Retained eamings- December 31 $ 655,185 471,155 CITY.OF EDINA, MINNESOTA Golf Course Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 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 Decrease in due from other governments (Increase) decrease in inventory Increase (decrease) in accounts payable Increase in salaries payable Decrease in accrued interest payable Increase (decrease) in due to other governments Increase in compensated absences payable Decrease in deposits payable Decrease in deferred revenue Total adjustments Net cash provided by operating activities Cash flow from noncapital financing activities: Decrease in advance from other funds 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 Cash and cash equivalents, end of year Page 87 1997 1996 647,196 516,927 15,524 0 2,635 25,456 3,980 (5,958) 2,721 2,630 (3,981) (4,593) 555,341 1,202,537 450,649 563,841 (7,092) 3,244 (18,481) (12,551) 3,017 (31,987) (1,523) 5,229 (6,125) (5,898) 491,674 942,323 (56,910) (18,755) (56,910) (18,755) (439,075) (68.344) (265,750) (3,600) 109,884 (1,581) (494,542) (1,163,008) (17,381) 2,201,093 $ 2,183,712 (360,374) 26,675 (773,500) (3,600) 122,898 (1,730) (506,029) (1,495,660) (572,092) 2,773,185 2,201,093 Page 88 CITY OF EDINA, MINNESOTA Golf Course Fund Schedule of Operating Expenses Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) Maintenance of course and grounds: Personal services 1997 1996 Administration 34,766 57,942 Personal services $ 362,306 357,821 Contractual services 115,199 85,565 Commodities 25,470 26,935 Central services 198,266 194,743 Total administration 701,241 665,064 Building -Club House 43,301 36,690 Personal services 34,289 43,882 Contractual services 80,490 91,369 Commodities 13,654 20,369 Total building -Club House 128,433 155,620 Maintenance of course and grounds: Personal services 371,266 352,713 Contractual services 34,766 57,942 Commodities 117,177 113,836 Total maintenance of course and grounds 523,209 524,491 Range and grill: Personal services 167,173 171,972 Contractual services 6,257 4,282 Commodities 43,301 36,690 Total range and grill 216,731 212,944 Golf dome: Personal services 96,573 88,615 Contractual services 120,859 116,791 Commodities 25,415 13,502 Central services 2,494 0 Total golf dome 245,341 218,908 Richards: Personal services 87,732 76,775 Contractual services 22,006 7,848 Commodities 24,160 13,771 Total Richards 133,898 98,394 Pro Shop Personal services 36,190 36,746 Contractual services 16,756 28,579 Commodities 4,333 7,174 57,279 72,499 Depreciation 516,927 563,841 Total operating expenses $ 2,523,059 2,511,761 Page 89 CITY OF EDINA, MINNESOTA Arena Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) 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 Fund equity: Contributed capital Retained earnings: Reserved for debt service Unreserved —u ndesignated Total retained earnings (deficit) 1997 $ 700 1,814,257 152,722 1,967,679 1996 700 1,841,647 74,678 1,917,025 5,229,562 1,665,892 12,655 17,133 $ 7,209,896 3,600,050 40,205 10,751 114,740 50,000 8,359 15,573 239,628 3,500 5,040 823,480 259,200 3,639,725 4,970,573 3,578,158 184,591 (1,523,426) (1,338,835) 12,841 5,267 115,117 50,000 847 14,059 198,131 3,500 5,040 754,006 291,600 3,658,975 4,911,252 L 184,591 (1,495,793) (1,311,202) Total liabilities and retained earnings $ 7,209,896 3,600,050 CITY OF EDINA, MINNESOTA Arena Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 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): Donations Interest from fiscal agent Interest and fiscal charges Interest on capital lease Amortization of bond discount Total nonoperating expenses Net loss before operating transfer in Operating transfer in- Liquor fund Net loss Add depreciation on contributed assets Decrease in retained earnings Retained earnings (deficit) -- January 1 Retained earnings (deficit) - December 31 1997 $ 670,742 6,330 12,677 60,866 88,260 1,934 25,355 14,527 880,691 317,737 264,574 64,931 57,996 216,544 921,782 1996 584,048 7,487 11,469 26,412 73,303 20,381 12,173 11,231 746,504 296,882 205,276 35,805 55,668 137,048 730,679 (41,091) 15,825 3,000 0 73,040 96,561 (231,105) (232,290) (14,228) (15,573) (4,477) (4,477) (173,770) (155,779) (214,861) (139,954) 100,000 0 100,000 0 (114,861) (139,954) 87,228 0 (27,633) (139,954) (1,311,202) (1,171,248) $ (1,338,835) (1,311,202) Page 90 CITY OF EDINA, MINNESOTA Arena Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 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 Increase (decrease) in accounts payable Increase in salaries payable Decrease in accrued interest payable Increase (decrease) in due to other governments Increase in compensated absences payable Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Page 91 1997 1996 (41, 091) 15,825 216,544 (78,044) 27,364 5,484 (377) 7,512 1,514 179,997 138,906 Donations 3,000 Increase (decrease) in advance from other funds 69,474 Operating transfer in— Liquor Fund 100,000 Net cash used provided by noncapital financing activities 172,474 Cash flows from capital financing activities: Net acquisition of capital 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 (114,827) (19,250) (32,400) 73,040 (231,105) (14,228) (338,770) (27, 390) 137,048 98,322 (2,577) 3,546 (893) (1,022) 674 235,098 250,923 0 (54,448) 0 (54,448) (509) (19,250) (32,400) 96,561 (232,290) (15, 573) (203,461) (6,986) 1,842, 347 1,849, 333 Cash and cash equivalents, end of year $ 1,814,957 1,842,347 CITY OF EDINA, MINNESOTA Gun Range Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) Assets 1997 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 -- undesignated Total liabilities and retained earnings 1996 $ 0 16,476 $ 0 16,476 0 1,162 0 0 0 13,831 0 32 0 15,025 0 1,451 $ 0 16,476 Page 92 CITY OF EDINA, MINNESOTA Gun Range Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 1997 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 expenses: Loss on sale of fixed assets Total nonoperating expenses Loss before operating transfers Operating transfer in: $ 8,684 1,408 91 87 10,270 10,207 3,947 979 2,520 2,395 20,048 (9,778) (1,062) (1,062) (10,840) Transfer in— Liquor Fund 22,408 Total nonoperating expenses 22,408 Net income (loss) before residual equity transfers 11,568 Retained earnings - January 1 1,451 Residual equity transfer out (13,019) Retained earnings - December 31 $ 0 .., 24,718 4,311 346 117 29,492 21,088 6,262 10,609 2,412 2,862 43,233 (13,741) 0 0 (13,741) 5,000 5,000 (8,741) 10,192 0 1,451 Page 93 CITY OF EDINA, MINNESOTA Gun Range Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 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 (decrease) in due to other funds Total adjustments Net cash used by operating activities Cash flows from noncapital financing activities: Operating transfer in— Liquor Store Residual equity transfer out Net cash provided by noncapital financing activities Cash flows from capital financing activities: Net acquisition of capital assets Loss on sale of fixed assets 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 94 1997 1996 $ (9,778) (13,741) 2,395 (1,162) 0 (32) (13,831) (12,630) (22,408) 22,408 (13,019) 9,389 14,081 (1,062) 13,019 0 0 $ 0 2,862 830 (130) 12 5,168 8,742 (4,999) 5,000 0 5,000 (1) 0 (1) 0 0 0 CITY OF EDINA, MINNESOTA Art Center Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) Assets 1997 Current assets: Petty cash and change funds Investments Due from other funds 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 liabilities Fund equity: Contributed capital Retained earnings: Reserve for construction Unreserved — undesignated Total retained earnings Total liabilities and retained earnings 1996 $ 225 225 10,266 0 643 0 9,157 9,064 20,291 9,289 0 285 198,327 199,823 $ 218,618 209,397 13,409 9,541 3,023 1,504 463 570 4,835 4,480 21,730 16,095 9,519 0 750 750 186,619 192,552 187,369 193,302 $ 218,618 209,397 Page 95 Page 96 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) 1997 1996 Operating revenues: Memberships $ 22,759 22,702 Registration fees 184,440 177,051 Media Lab 17,677 17,290 Retail sales, less cost of goods sold 15,142 15,659 Total operating revenues 240,018 232,702 Operating expenses: Administration: Personal services 109,392 97,453 Contractual services 5,985 3,453 Commodities 27,678 29,153 Central services 23,220 22,332 Total administration 166,275 152,391 Occupancy: Personal services 13,450 13,043 Contractual services 22,018 21,179 Commodities 6,417 5,186 Total occupancy 41,885 39,408 Media Lab: Personal services 13,297 10,253 Contractual services 1,776 769 Commodities 1,097 516 Total Media Lab 16,170 11,538 Class costs 2,648 1,986 Instructors- personal services 104,562 101,736 Depreciation 20,017 28,262 Total operating expenses 351,557 335,321 Operating loss (111,539) (102,619) Nonoperating revenues: Donations 31,102 14,479 Miscellaneous revenue 7,003 8,187 Total nonoperating revenues 38,105 22,666 Net loss before operating transfer in (73,434) (79,953) Operating transfer in- Liquor Store 67,000 95,000 67,000 95,000 Net Income (loss) (6,434) 15,047 Add depreciation on contributed assets 501 0 Increase (decrease) in retained earnings (5,933) 15,047 Retained eamings- January 1 193,302 178,255 Retained earnings- December 31 $ 187,369 193,302 Page 97 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Cash Flows Year ended Deoember 31, 1997 (with comparative amounts for year ended December 31, 1996) Cash flows from noncapital financing activities: Donations 1997 1996 Cash flows from operating activities: 7,003 8,187 Operating loss $ (111,539) (102,619) Adjustments to reconcile operating income to 0 (750) net cash provided by operating activities: 67,000 95,000 Depredation expense 20,017 28,262 Changes in assets and liabilities: Increase in inventory (93) (734) Increase (decrease) in accounts payable 3,868 (1,119) Increase in salaries payable 1,519 475 Increase (decrease) in due to other governments (107) 128 Increase (decrease) in compensated absences payable 355 (1,348) Increase in due to other funds (643) (39,550) Total adjustments 24,916 (13,886) Net cash used by operating activities (86,623) (116,505) Cash flows from noncapital financing activities: Donations 20,836 14,479 Miscellaneous revenue 7,003 8,187 (Increase) decrease in advance to other funds 285 (285) Decrease in reserve for construction 0 (750) Operating transfer in— Liquor Store 67,000 95,000 Net cash provided by noncapital financing activities 95,124 116,631 Cash flow from capital financing activities: Net acquisition of capital assets (8,501) (1) Net cash used by capital financing activities (8,501) (1) Net increase in cash and cash equivalents 0 125 Cash and cash equivalents, beginning of year 225 100 Cash and cash equivalents, end of year $ 225 225 Supplemental disclosure of noncash noncapital financing activity: Donation of investments $ 10,266 0 Page 98 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Balance Sheet December 31, 1997 (with comparative amounts for December 31, 1996) 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 governments 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): Un reserved — undesignated Total retained earnings (deficit) 1997 1996 $ 1,500 643 367 53,610 22,210 78,330 1,500 441 355 69,673 81,541 153,510 974,977 808,811 $ 1,053,307 962,321 27,845 15,128 0 1,347 25,093 69,413 0 72,000 141,413 759,782 34,327 10,338 205,984 1,305 21,847 273,801 1,127,232 81,000 1,482,033 628,981 152,112 (1,148,693) 152,112 (1,148,693) Total liabilities-and retained earnings $ 1,053,307 962,321 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) Operating revenues: Association fees Rental fees Admissions Season ticket sales Skate rental Concessions (less cost of goods sold) Program income Greens fees 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 Loss on sale of assets Total nonoperating revenues Net loss before operating transfers Operating transfer in - General Fund Operating transfer in - Liquor Fund Total operating transfers Net income (loss) Add depreciation on contributed assets Increase (decrease) in retained earnings Retained earnings (deficit)- January 1 Retained earnings (deficit)- December 31 1997 $ 278,964 165,876 67,298 13,395 29,600 4,148 13,546 27,694 4,827 605,348 673,461 296,927 143,966 153,408 103,414 1,371,176 (765,828) 1996 251,944 153,512 65,745 13,695 24,547 5,468 13,262 0 6,105 534,278 597,606 273,022 156,578 148,896 107,344 1,283,446 (749,168) 374,217 424,425 (3,952) (4,326) (6,710) 0 363,555 420,099 (402,273) (329,069) 1,600,000 0 25,000 0 1,625,000 0 1,222,727 (329,069) 78,078 70,725 1,300,805 (258,344) (1,148,693) (890,349) $ 152,112 (1,148,693) Page 99 Page 100 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Cash Flows Year ended December 31, 1997 (with comparative amounts for year ended December 31, 1996) Cash flow from capital financing activities: Net acquisition of capital assets 1997 1996 Cash flows from operating activities: (6,710) 0 Operating loss $ (765,828) (749,168) Adjustments to reconcile operating income in (3,952) (4,326) net cash provided by operating activities: (80,363) (33,367) Depreciation expense 103,414 107,344 Changes in assets and liabilities: (Increase) decrease in accounts receivable (12) 41,818 Increase (decrease) in accounts payable (6,482) 3,422 Increase in salaries payable 4,790 1,474 Increase (decrease) in due to other government 42 (52) Increase in compensated absences payable 3,246 3,965 (Increase) decrease in due from other funds 59,331 (8,678) Increase (decrease) in due to other funds (205,984) 205,984 Total adjustments (41,655) 355,277 Net cash used by operating activities (807,483) (393,891) Cash flows from noncapital financing activities: Increase (decrease) in advance from other funds (1,127,232) 3,408 Operating transfer in - General Fund 1,600,000 0 Operating transfer in - Liquor Fund 25,000 0 Net cash provided by noncapital financing activities 497,768 3,408 Cash flow from capital financing activities: Net acquisition of capital assets (60,701) (20,041) Loss on sale of fixed assets (6,710) 0 Principal paid on capital lease (9,000) (9,000) Interest paid on capital lease (3,952) (4,326) Net cash used by capital financing activities (80,363) (33,367) Cash flows from investing activities: (Increase) decrease in interest receivable 16,063 (747) Interest on investments 374,217 424,425 Net cash provided by investing activities 390,280 423,678 Net increase (decrease) in cash and cash equivalents 202 (172) Cash and cash equivalents, beginning of year 1,941 2,113 Cash and cash equivalents, end of year $ 2,143 1,941 Page 101 TRUST AND 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. Deferred Compensation Expendable Trust Fund: Accounts for assets that are held in a trustee capacity by the City for employees in accordance with the provisions of Internal Revenue Code Section 457. 1-494 Corridor Commission Fund: This fund is used to account for various deposits made by the members of the Joint Powers Organization which includes Bloomington, Eden Prairie, Maple Grove, Minnetonka, Plymouth and Richfield and payments made to various organizations for planning and consulting services and meeting expenses. Assets: Cash Investments Cash and investments with plan administrators Due from other governments Total assets Page 102 CITY OF EDINA, MINNESOTA Trust and Agency Funds Combining Balance Sheet Year ended December 31, 1997 (with comparative totals for December 31, 1996) Expendable Trust Agency Deferred Deferred Police 1-494 Totals Compensation Compensation Seizure Commission 1997 1996 $ 0 0 139,790 4,098 143,888 95,317 0 0 0 119,159 119,159 0 2,510,513 0 0 0 2,510,513 8,217,281 0 0 0 6,420 6,420 0 $ 2,510,513 0 139,790 129,677 2,779,980 8,312,598 Liabilities: Accounts payable $ 0 0 0 7,981 7,981 0 Due to other funds 0 0 13,478 0 13,478 13,478 Due to other governments 0 0 126,312 121,696 248,008 81,839 Due to participants 0 0 0 0 0 8,217,281 Total liabilities 0 0 139,790 129,677 269,467 8,312,598 Fund balance: Reserved for deferred compensation plan participants 2,510,513 0 0 0 2,510,513 0 Total liabilities and fund balances $ 2,510,513 0 139,790 129,677 2,779,980 8,312,598 Page 103 CITY OF EDINA, MINNESOTA Deferred Compensation Expendable Trust Fund Balance Sheet Year ended December 31, 1997 (with comparative totals for December 31, 1996) Assets: Cash and cash equivalents Liabilities and fund balances: Fund balance: 1997 $ 2,510,513 1996 0 Reserved for deferred compensation plan participants $ 2,510,513 0 CITY OF EDINA, MINNESOTA Deferred Compensation Expendable Trust Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended December 31, 1997 (with comparative totals for December 31, 1996) Revenues: Net appreciation (depreciation) in fair value of investments $ Employee contributions Total revenues Expenditures: Distributions to plan participants Administrative expense Total expenditures 1997 330,374 284,038 614,412 38,063 4,122 42,185 Excess of revenues over expenditures 572,227 Fund balance - January 1 0 Cummulative effect of adoption of GASB 32 1,938,286 Fund balance as restated 1,938,286 Fund balance - December 31 $ 2,510,513 1996 0 0 0 0 0 0 0 0 0 0 0 Page 104 Page 105 CITY OF EDINA, MINNESOTA Agency Funds Statement of Changes in Assets and Liabilities Year ended December 31, 1997 Balance Balance 1/1/97 Additions Deductions 12/31/97 Deferred Compensation Fund Assets: Cash & investments with plan administrators $ 8,217,281 0 8,217,281 0 Liabilities: Due to participants Police Seizure Fund Assets: Cash Liabilities: Due to other funds Due to other governments 1494 Commission Fund Assets: Cash Investments Due from other governments Total assets Liabilities: Accounts payable Due to other governments Totals -All Agency Funds Assets: Cash Investments Cash & investments with plan administrators Due from other governments Total assets Liabilities: Accounts payable Due to other funds Due to other governments Due to participants Total liabilities $ 8,217,281 0 8,217,281 0 $ 95,317 44,473 0 139,790 13,478 0 0 13,478 81,839 44,473 0 126,312 $ 95,317 44,473 0 139,790 0 4,098 0 4,098 0 119,159 0 119,159 0 6,420 0 6,420 0 129,677 0 129,677 $ 8,312,598 174,150 0 7,981 0 7,981 0 121,696 0 121,696 0 129,677 0 129,677 $ 95,317 48,571 0 143,888 0 119,159 0 119,159 8,217,281 0 8,217,281 0 0 6,420 0 6,420 $ 8,312,598 174,150 8,217,281 269,467 $ 0 7,981 0 7,981 13,478 0 0 13,478 81,839 166,169 0 248,008 8,217,281 0 8,217,281 0 $ 8,312,598 174,150 8,217,281 269,467 Page 106 GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group provides for the accounting of fixed assets other than those accounted for in the Enterprise Funds. Page 107 CITY OF EDINA, MINNESOTA General Fixed Assets Account Group Schedule of General Fixed Assets December 31, 1997 (with comparative amounts for December 31, 1996) General fixed assets: Land and land improvements Buildings Furniture and fixtures Vehicles and equipment Parks Construction -in- progress Total general fixed assets 1997 $ 35,384,971 20,453,411 999,719 9,414,564 9,148,021 2,723,427 1996 29,274,238 19,680,962 858,131 9,156,826 7,355,921 2,083,678 $ 78,124,113 68,409,756 Total investment in general fixed assets $ 78,124,113 68,409,756 Page 108 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, 1997 (with comparative amounts for December 31, 1996) 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 Page 109 1997 1996 $ 19,464,707 0 52,925,293 8,683,989 715,000 522,035 $ 82,311,024 522,035 593,989 81,195,000 21,767,924 200,000 47,847,076 8,740,000 900,000 507,272 79,962,272 507,272 650,000 78,805,000 Total general long -term debt payable $ 82,311,024 79,962,272 Page 110 CITY OF EDINA, MINNESOTA Combined Schedule of Bonded Indebtedness December 31, 1997 Total bonded indebtedness (a) call date 02101/97 Final Interest Issue maturity rate date date Bonded indebtedness: Tax Increment Bonds: Tax Increment Bonds, Series 1988 6.40- 7.30 10101/88 02/01/09 Tax Increment Bonds, Series 1989 6.80- 7.30 04/01/89 02101/09 Tax Increment Bonds, Series 1990 6.70- 6.80 03/01/90 (a) 02/01/05 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 02101/09 Tax Increment Temporary Bonds, Series 1997A 4.5 02/05/97 02/05/00 Tax Increment Temporary Bonds, Series 1997B 4.5 08/15/97 08/15/00 Tax Increment Bonds, Series 1997B 4.50-5.50 04/07/97 02/01/13 General Obligation Bonds: General Obligation Park & Rec Bonds, Series 1996B 4.25 -5.75 08/01/96 08/01/17 Improvement Bonds: Improvement Refunding Bonds, Series 1992E 4.00- 5.20 11/01/92 02/01/01 Revenue Bonds: 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 02101/99 Total bonded indebtedness (a) call date 02101/97 1997 Percent paid by tax levies Authorized and issued Indebtedness Redeemed Page 111 Exhibit 1 Due in 1998 Outstanding Principal Interest None 10,175,000 500,000 9,675,000 9,675,000 686,213 None 8,425,000 425,000 8,000,000 8,000,000 571,788 None 3,080,000 3,080,000 0 0 0 None 17,930,000 0 17,930,000 0 1,025,405 None 19,580,000 1,635,000 17,945,000 1,625,000 835,410 None 11,250,000 0 11,250,000 0 682,550 None 5,000,000 5,000,000 0 0 0 None 2,500,000 0 2,500,000 0 93,750 None 5,090,000 0 5,090,000 0 352,273 83,030,000 10,640,000 72,390,000 19,300,000 4,247,389 None 8,090,000 0 8,090,000 0 429,000 None 1,095,000 380,000 715,000 185,000 31,008 1,095,000 380,000 715,000 185,000 31,008 None 2,470,000 150,000 2,320,000 2,320,000 165,863 None 2,100,000 445,000 1,655,000 1,655,000 115,856 None 3,975,000 115,000 3,860,000 105,000 220,128 None 4,650,000 115,000 4,535,000 160,000 248,508 None 1,925,000 1,105,000 820,000 400,000 29,980 15,120,000 1,930,000 13,190,000 4,640,000 780,335 $ 107,335,000 12,950,000 94,385,000 24,125,000 5,487,732 Page 112 Exhibit 2 CITY OF EDINA, MINNESOTA Schedule of Changes in Bonded Indebtedness Year ended December 31, 1997 Balance Balance January 1 Issued Redeemed December 31 Tax Increment Bonds $ 69,815,000 12,590,000 10,015,000 72,390,000 General Obligation Bonds 8,090,000 0 0 8,090,000 Improvement Bonds 900,000 0 185,000 715,000 Revenue Bonds 13,875,000 0 685,000 13,190,000 $ 92,680,000 12,590,000 10,885,000 94,385,000 CITY OF EDINA, MINNESOTA Schedule of Bonds Payable December 31, 1997 Issue date Tax Increment Bonds: $10,175,000 Tax Increment Bonds, Series 1988 10/1/88 $250,00041,800,000 per year Interest Page 113 Exhibit 3 Maturity Principal date amount 6.70 -7.30 02/01/98 -09 $ 9,675,000 Bonds maturing in the years 1999 through 2009 called on February 1, 1998. $8,425,000 Tax Increment Bonds Series 1989 4/1/89 $200,000-$1,500,OOO per year 6.95 -7.30 02/01/98 -09 8,000,000 Bonds maturing in the years 1999 through 2009 called on February 1, 1998. $17,930,000 Tax Increment Refunding Bond, Series 1992B 11/1192 $595,000 4.90% 2/1/99 595,000 $735,000 5.00 2/2/00 735,000 $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 5.60 211/04 1,410,000 $1,470,000 5.70 211/05 1,470,000 $1,635,000 5.80 211/06 1,635,000 $2,490,000 5.90 211/07 2,490,000 $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 $1,625,000 4.40 2/1/98 1,625,000 $1,635,000 4.40 2/1/99 1,635,000 $1,610,000 4.60 2/2/00 1,610,000 $1,680,000 4.75 2/1/01 1,680,000 $2,415,000 4.90 2/1102 2,415,000 $2,455,000 5.00 2/1/03 2,455,000 $2,230,000 5.10 2/1/04 2,230,000 $2,555,000 5.10 2/1/05 2,555,000 $1,740,000 5.10 2/1/06 1,740,000 17,945,000 (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued $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 $2,500,000 Tax Increment Temporary Bond, Series 1997B $2,500,000 $5,090,000 Tax Increment Temporary Bond, Series 1997B $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 $250,000 $405,000 $425,000 $445,000 $465,000 $490,000 $515,000 $545,000 $575,000 Total tax increment bonds Page 114 Exhibit 3, Cont. Issue Interest Maturity Principal date rate date amount 4.75 2/1/01 3/1/96 4.80 2/1/02 5.85 2/1/99 $ 500,000 5.85 2/1/00 625,000 5.85 211/01 650,000 5.85 2/1/02 700,000 5.85 2/1/03 800,000 6.00 211/04 900,000 6.10 2/1/05 900,000 6.10 2/1/06 1,000,000 6.15 2/1/07 1,475,000 6.20 2/1/08 1,800,000 6.25 2/1/09 1,900,000 8/15/97 4!7/97 11,250,000 4.50 8/15/00 2,500,000 4.50 2/1/99 100,000 4.65 2/1/00 125,000 4.75 2/1/01 150,000 4.80 2/1/02 175,000 4.85 2/1/03 200,000 4.95 2/1/04 225,000 5.05 2/1/05 250,000 5.10 2/1/06 405,000 5.15 211/07 425,000 5.20 2/1/08 445,000 5.30 2/1/09 465,000 5.30 2/1/10 490,000 5.35 2/1/11 515,000 5.40 2/1/12 545,000 5.50 2/1/13 575,000 5,090,000 72,390,000 (Continued) CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Issue Interest Maturity date rate date General Obligation Bonds: $8,090,000 General Obligation Park & Rec Bond, Series 1996B $265,000 $275,000 $300,000 $300,000 $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 $180,000 $180,000 $170,000 Total Improvement Bonds Page 115 Exhibit 3, Cont Principal amount 8/1/96 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 2/1/03 325,000 4.90 2/1/04 325,000 5.00 211/05 350,000 5.10 2/1/06 375,000 5.20 211/07 375,000 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 8,090,000 11/1/92 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 $175,000 - $325,000 per year 6.70 -7.30 Bonds maturing in the years 1999 through 2009 called on January 1, 1998 $2,100,000 Recreational Facility Bonds, Series 1989 4/1/89 $95,000 - $195,000 per year 6.95 -7.30 Bonds maturing in the years 1999 through 2009 called on January 1, 1998. 715,000 01/01/98 -09 2,320,000 01/01/98-09 $ 1,655,000 (Continued) Page 116 Exhibit 3, Cont CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued 3,860,000 $4,650,000 Recreational Facility Refunding Bonds, Series 1992C Issue Interest Maturity Principal $160,000 date rate date amount $3,975,000 Recreational Facility 4.90 1/1/99 325,000 Bonds, Series 1992A 11/1/92 1/2/00 320,000 $105,000 4.70 1/1/98 105,000 $105,000 4.90 1/1/99 105,000 $130,000 5.00 1/2/00 130,000 $135,000 5.20 1/1/01 135,000 $170,000 5.40 1/1/02 170,000 $200,000 5.50 1/1/03 200,000 $235,000 5.60 1/1/04 235,000 $250,000 5.70 1/1/05 250,000 $260,000 5.80 1/1/06 260,000 $275,000 5.90 1/1107 275,000 $285,000 5.95 1/1/08 285,000 $305,000 6.00 111/09 305,000 $320,000 6.00 111/10 320,000 $340,000 6.05 1/1/11 340,000 $360,000 6.05 1/1/12 360,000 $385,000 6.05 1/1/13 385,000 3,860,000 $4,650,000 Recreational Facility Refunding Bonds, Series 1992C 11/1/02 $160,000 4.70 1/1/98 160,000 $325,000 4.90 1/1/99 325,000 $320,000 5.00 1/2/00 320,000 $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 1/1108 495,000 $505,000 6.00 1/1/09 505,000 4,535,000 $1,925,000 Utility Revenue Refunding Bonds, Series 1992D 11/1/92 $400,000 4.70 2/1/98 $ 400,000 $420,000 4.90 2/1/99 420,000 820,000 Total revenue bonds 13,190,000 Total bonds payable $ 94,385,000 Exhibit 4 CITY OF EDINA, MINNESOTA December 31, 1997 Year Tax Increment Bonds General Obligation Bonds Improvement Bonds Revenue Bonds Ended Principal Interest Principal Interest Principal Interest Principal Interest 1.998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 19,300,000 2,830,000 5,595,000 3,270,000 4,415,000 4,720,000 4,765,000 5,175,000 4,780,000 4,390,000 5,335,000 5,690,000 490,000 515,000 545,000 575,000 0 0 0 0 0 $ 72,390,000 4,247,389 2,798,760 2,659,264 2,402,000 2,204,768 1,966,138 1,712,811 1,443,088 1,169,665 906,559 616,770 286,025 101,593 74,831 46,340 15,813 0 0 0 0 0 22,651,812 0 265,000 275,000 300,000 300,000 325,000 325,000 350,000 375,000 375,000 400,000 425,000 450,000 475,000 500,000 525,000 550,000 600,000 625,000 650,000 0 429,000 423,369 411,688 398,888 385,163 370,388 354,625 337,913 319,600 300,288 279,938 257,863 234,125 208,800 181,863 153,288 123,050 90,413 55,344 18,688 0 185,000 180,000 180,000 170,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8,090,000 5,334,288 715,000 31,008 22,250 13,340 4,420 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 71,018 4,640,000 850,000 450,000 470,000 530,000 565,000 615,000 660,000 695,000 720,000 780,000 810,000 320,000 340,000 360,000 385,000 0 0 0 0 0 13,190,000 780,334 462,163 430,088 406,618 380,088 350,240 317,483 281,453 242,488 201,093 156,648 109,143 75,243 55,358 34,183 11,646 0 0 0 0 0 4,294,263 v w co m J Assessed valuation/tax capacity Increment valuation Contribution to fiscal disparities pool Received from fiscal disparities pool Taxable valuation Tax levies: General Fund Tax Capacity Rate: General Fund Page 118 Exhibit 5 CITY OF EDINA, MINNESOTA Assessed Valuation, Tax Levies and Mill Rates (shown by year of tax collectibiliity) 1994 1995 1996 1997 1998 $ 82,244,215 84,055,819 85,775,887 91,586,990 87,726,810 (6,207,276) (5,162,771) (4,848,313) (5,517,147) (5,729,884) (10,289,650) (8,042,316) (8,442,482) (8,385,640) (6,451,992) 2,511,902 2,214,875 2,301,627 2,402,957 2,217,217 $ 68,259,191 73,065,607 74,786,719 80,087,160 77,762,151 $ 10,927,551 11,390,898 12,178,440 12,531,244 13,099,140 16.032 15.577 16.331 15.626 16.813 ".6 Peat Marwick LLP 4200 Norwest Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report on Minnesota Legal Compliance Page 119 Exhibit 6 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, 1997, and have issued our report thereon dated April 3, 1998. 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 Government covers five main categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, and claims and disbursements. Our study included all of the listed categories. The results of our 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 3, 1998 11111111 Member Firm of KPMG International Page 120 Exhibit 7 CITY OF EDINA, MINNESOTA Schedule of Findings on Legal Compliance Year ended December 31, 1997 Finding MN Stat. Sec. 118A.04, Subd. 9, requires the City to provide, annually, a written statement of investment restrictions to their investment brokers prior to the completion of an initial transaction. During our audit, we noted brokers did not acknowledge their awareness of investment restrictions prior to the first investment transaction in 1997. Management's Response Broker certifications were not received until after the start of the year. Certifications will be sent out earlier in the future. Finding The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Section 1823(e) states that a security agreement, including an assignment of collateral to a deposit account, is not valid against FDIC unless the following steps have been satisfied. Satisfying the following steps ensures a perfected interest in the security. 1. The assignment must be made in writing; 2. The assignment must have been executed contemporaneously with the receipt of the deposit by the depositors; 3. The assignment must have been approved by the depository's board of directors or loan committee; and 4. The assignment needs to have been continuously, from time of its execution, an official record of the depository. During our audit, we noted the City did not have perfected interests in collateral assigned by National City Bank and Americana Bank as of December 31, 1997. The interest was not perfected since the Bank's board of directors did not approve the collateral nor was this indicated in the Bank's official record. Therefore, the City did not have sufficient collateral pledged to cover the uninsured deposits, as required by Minnesota Statutes Sect. 118A.03, Subdivision 1. Management's Response One of the banks has satisfied the requirement to perfect the collateral. The other bank is researching the best way to address this issue. Neither bank in question is the City's primary bank and only occasionally do these banks go over the $100,000 FDIC insurance limit. Page 121 Finding MN Stat. Sec. 412.271, Subd. 2, requires the City to provide the following declarations to be made by employees on all payroll disbursements. 1. A timekeeper, supervisor, officer or employee must sign a declaration that states that the facts recited on the payroll (including employees' names, and number of hours worked each day) are correct to the best of the declarant's knowledge, and 2. The employee must declare, once the disbursement is made, that the employee has received the wages and done the work for which wages have been paid. During our audit, we noted the City does not obtain the declarations specified above. Management's Response The specified declarations will be included on the timecards the next time the forms are printed. April 3, 1998 STATISTICAL SECTION Table 1 CITY OF EDINA, MINNESOTA General Governmental Expenditures by Function (a) Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Unallocated Fiscal General Public Public general Capital Debt year government safety works Parks expenditures Other outlay service Total 1988$ 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 1997 2,247,040 7,717,334 3,537,441 2,031,261 340,510 1,597,747 16,796,824 6,622,948 40,891,105 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. v d so m J N N Table 2 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. '0 m m N W Interest on funds Licenses Charges held with Sales and Fiscal Special Franchise and Inter- for Fines and Interest on fiscal rental of year Taxes assessments Fee permits governmental services forfeitures Investments agent property Miscellaneous Totals 1988 $ 9,853,560 1,500,050 48,528 623,760 2,425,720 740,708 532,257 533,647 0 127,846 130,766 16,516,842 1989 11,050,785 936,026 49,969 893,191 3,548,522 873,549 467,957 1,737,726 0 151,180 1,613,999 21,322,904 1990 12,968,717 936,042 98,715 874,298 572,262 1,235,812 494,009 1,289,470 0 133,809 2,432,752 21,033,886 1991 14,425,200 980,689 133,680 850,897 580,561 1,287,524 437,433 875,320 0 124,149 437,429 20,132,882 1992 15,935,816 1,563,993 168,122 820,007 1,000,395 1,360,233 471,038 424,622 0 100,000 3,107,110 24,951,336 1993 17,505,272 991,394 260,039 1,037,783 1,749,631 1,167,446 350,582 431,976 1,443,530 100,765 205,432 25,243,850 1994 17,637,458 1,087,831 206,261 947,122 1,807,826 1,251,603 322,992 591,985 1,727,103 174,970 1,016,605 26,771,756 1995 15,534,902 858,897 209,519 1,070,352 5,693,802 1,510,470 545,998 411,345 1,742,621 68,871 591,318 28,238,093 1996 16,089,705 969,468 224,489 1,382,427 3,928,352 1,621,635 456,589 950,129 1,175,976 108,111 292,018 27,198,899 1997 17,653,621 955,208 331,527 1,388,968 1,996,744 2,842,923 562,910 1,199,251 1,038,850 152,398 190,654 28,313,052 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. '0 m m N W Table 3 CITY OF EDINA, MINNESOTA Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) o� c� N A 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 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% 1996 12,178,440 12,026,177 98.75% (262,279) 11,763,898 96.60% 36,198 0.30% 1997 12,531,244 12,381,729 98.81% (244,913) 12,136,816 96.85% 39,107 0.31% o� c� N A 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. Page 125 Table 4 Ratio of total assessed value/ tax capacity to total estimated market value 3.29% 2.71% 2.67% 2.49% 2.34% 2.26% 2.20% 2.18% 2.11% 2.25% Real property Assessment Assessed value/ Estimated year tax capacity market value 1988 (a) $ 100,735,332 3,061,404,810 1989 87,055,570 3,212,261,700 1990 90,320,919 3,388,087,700 1991 87,214,668 3,496,892,900 1992 83,480,350 3,568,897,100 1993 81,413,953 3,607,576,600 1994 82,244,215 3,733,888,400 1995 84,055,819 3,849,796,600 1996 85,775,887 4,071,654,134 1997 91,586,990 4,074,713,634 Note: (a) In 1988, assessed value was replaced by tax capacity. Page 125 Table 4 Ratio of total assessed value/ tax capacity to total estimated market value 3.29% 2.71% 2.67% 2.49% 2.34% 2.26% 2.20% 2.18% 2.11% 2.25% Page 126 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) City of Edina Special Fiscal General Revenue School year Fund Funds Total District County Other Total 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 1997 15.626 - 15.626 57.213 35.515 6.659 115.013 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 d N V 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 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 1997 590,048 576,513 97.71% 9,036 585,549 99.24% 17,889 .D d N V 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 N co 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 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 1996 46,845 80,087 92,680,000 25,429,215 67,250,785 83.97% 1,436 1997 47,029 77,762 94,385,000 17,929,523 76,455,477 98.32% 1,626 *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 N co CITY OF EDINA, MINNESOTA Computation of Legal Debt Margin December 31, 1997 (Unaudited - see accompanying auditors' 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 $ 72,390,000 715,000 13,190,000 $ 94,385,000 86,295,000 Page 129 Table 8 $ 4,074,713,634 81,494,273 8,090,000 Legal debt margin $ 73,404,273 CITY OF EDINA, MINNESOTA Computation of Overlapping Debt December 31, 1997 (Unaudited - see accompanying auditors' report) Percentage applicable to City of Edina Page 130 Table 9 Amount applicable to City of Edina 100.00% $ Net debt Jurisdiction outstanding 98.29% 33,851,076 City of Edina $ 62,550,477 Hennepin County 100,776,398 IDS #273 (Edina) 34,440,000 IDS #270 (Hopkins) 49,272,166 IDS #271 (Bloomington) 10,463,660 IDS #272 (Eden Prairie) 103,316,840 IDS #280 (Richfield) 35,406,349 IDS #283 (St. Louis Park) 11,845,679 Metro Council 83,155,873 Hennepin County Regional Parks 9,669,528 Percentage applicable to City of Edina Page 130 Table 9 Amount applicable to City of Edina 100.00% $ 62,550,477 8.07% 8,132,655 98.29% 33,851,076 7.10% 3,498,324 0.02% 2,093 1.55% 1,601,411 31.98% 11,322,950 0.01% 1,185 4.12% 3,426,022 10.78% 1,042,375 $ 125,428,568 Fiscal year Principal 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) Interest Page 131 Table 10 Ratio of total debt service Total to total debt Total general general service expenditures (a) expenditures 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% 1997 2,120,000 4,502,948 6,622,948 40,891,104 16.20% 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 T m "Before interest costs. J W N Direct" available Gross operating for debt Debt service requirements Fiscal year revenue expenses service Principal Interest Total Coverage Utility Bond 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 4,761,182 436,218 170,000 194,382 364,382 120 1991 6,399,204 5,583,502 815,702 250,000 175,245 425,245 192 1992 5,867,015 5,365,942 501,073 275,000 169,233 444,233 113 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 1997 8,110,744 7,526,033 584,711 390,000 40,744 430,744 136 Recreational Facility Bonds 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 3,086,401 360,354 200,000 854,920 1,054,920 34 1995 3,824,627 3,262,948 561,679 0 839,244 839,244 67 1996 4,311,141 3,545,291 765,850 250,000 774,800 1,024,800 75 1997 4,440,202 3,945,975 494,227 295,000 762,411 1,057,411 47 T m "Before interest costs. J W N Table 12 CITY OF EDINA, MINNESOTA Property and Construction Values Last Ten Fiscal years (Unaudited - see accompanying auditors' report) *Assessor's market. d Q CD W w Commercial Residential construction construction Fiscal Number of Number of Property value* year permits Value permits Value Commercial Residential 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 1997 407 37,074,290 1,780 32,387,315 824,767,100 3,438,309,200 *Assessor's market. d Q CD W w Page 134 Table 13 CITY OF EDINA, MINNESOTA Principal Taxpayers December 31, 1997 (Unaudited - see accompanying auditors' report) 1997 tax Taxpayer Type of Business capacity Southdale Shopping center $ 6,333,776 Pentagon Office Park. Office building 1,477,916 Gabberts and Galleria Shopping center 1,406,890 Southdale Office Park Office building 1,384,050 Southdale Medical Building Office building 696,480 United Health Care Corporation Office building 875,345 National Car Office Building 573,480 Centennial Lakes Retail Retail 560,218 Cedars of Edina Apartments 519,002 Target Retail 425,842 Jerry's Center Retail 392,390 7373 France Medical Office 350,778 Edinborough Office East Office building 340,290 Durham Apartments 338,532 Edinborough Apartments 334,130 York Plaza Apartments 301,478 7505 Metro Boulevard Office building 282,434 7401 Metro Boulevard Office building 280,234 6363 France Avenue Medical Office 276,654 Vernon Terrace Apartments Senior Apartments 275,210 Employer Fairview Southdale Hospital Jerry's Enterprises Inc. Golden Valley Microwave Foods Health Risk Management Inc. Dayton's J.C. Penney Norwest Funding Nash Finch Co. International Dairy Queen Inc. Roach Organization Inc. Techpower Inc. CITY OF EDINA, MINNESOTA Major Employers in the City December 31, 1997 (Unaudited - see accompanying auditors' report) Product/Service Health Care Groceries Manufacturing Pension, Health and Welfare Funds Department Store Department Store Mortgage Bankers & Correspondents Groceries Eating Places Computer & Computer Software Stores Help Supply Services Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic Development, August, 1996 Page 135 Table 14 Approximate Number of Employees 2,400 2,000 650 552 500 400 358 350 300 140 120 CITY OF EDINA, MINNESOTA Labor Force Data December 31, 1997 (Unaudited - see accompanying auditors' report) December 1997 Civilian Unemployment Labor Force Rate Page 136 Table 15 December 1996 Civilian Unemployment Labor Force Rate Hennepin County 645,899 3.2% 647,933 2.1% Mpls. -St. Paul MSA 1,580,436 3.8 1,617,236 2.3 State of Minnesota 2,636,536 3.0 2,603,423 3.3 Source: Minnesota Department of Economic Security. 1997 data is preliminary. CITY OF EDINA, MINNESOTA Miscellaneous Statistics December 31, 1997 (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: 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) 58 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 137 Table 16 (Continued) Page 138 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 1997 (estimated June 1997) 47,029 Page 139 Table 17 CITY OF EDINA, MINNESOTA Schedule of 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 auditors' report) December 31, 1997 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds $ 2,200,000 5,280,000 5,251,998 0 28,002 Tax increments received 0 18,817,930 12,500,721 1,288,695 5,028,514 Real estate sales' 800,000 170,782 170,782 0 0 State aid 0 418,870 418,871 0 (1) Special assessments 0 1,321,096 728,505 0 592,591 Parking permits 0 38,208 187,297 23,424 (172,513) Community develop- ment 0 214,828 186,064 0 28,764 Interest on invested funds 0 0 521,045 342,353 (863,398) Other 0 0 73,881 0 (73,881) Total sources of funds 3,000,000 26,261,714 20,039,164 1,654,472 4,568,078 Uses of funds: Land acquisition 0 647,551 647,539 5,000 (4,988) Installation of public utilities and improvements 3,000,000 6,257,748 5,641,851 3,576 612,321 Bond payments Principal 0 5,280,000 2,200,000 0 3,080,000 Interest 0 4,738,329 3,072,129 182,823 1,483,377 Administrative costs 0 69,260 946,703 79,014 (956,457) Work orders 0 16,825 16,257 0 568 Contingencies 0 12,300 11,644 0 656 Interest 0 9,400 400,835 0 (391,435) Miscellaneous 0 7,100 22,478 7,951 (23,329) Total uses of funds 3,000,000 17,038,513 12,959,436 278,364 3,800,713 Funds remaining (or deficient) 0 9,223,201 7,079,728 1,376,108 767,365 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 Page 140 Table 18 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, 1997 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 25,191,754 2,869,744 56,938,502 Real estate sales' 598,005 1,750,000 1,842,874 304,178 (397,052) Community develop- ment Block Grant 0 0 189,221 0 (189,221) Interest on invested funds 0 0 1,930,542 132,352 (2,062,894) Other 0 0 25,931 0 (25,931) Total sources of funds 6,763,182 108,220,000 49,400,174 3,306,274 55,513,552 Uses of funds: Land acquisition 6,682,998 15,278,569 10,986,090 304,178 3,988,301 Installation of public utilities and improvements 0 21,894,254 15,397,695 0 6,496,559 Site improvements or preparation costs 2,885,484 2,392,303 468,098 0 1,924,205 Bond payments Principal 0 21,470,000 7,380,000 1,335,000 12,755,000 Interest 0 17,000,000 16,227,846 689,379 82,775 Administrative costs 194,700 2,466,200 2,113,884 35,757 316,559 Parkland dedication fees 0 0 767,852 0 (767,852) Total uses of funds 9,763,182 80,501,326 53,341,465 2,364,314 24,795,547 Funds remaining (or deficient) (3,000,000) 27,718,674 (3,941,291) 941,960 30,718,005 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 Coventry Townhouses 811,141 811,141 $ 2,493,423 2,147,052 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, 1997 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 Bond payments Principal Interest Administrative costs Total uses of funds Funds remaining (or deficient) Page 141 Table 19 0 (5,872,035) 1,365,168 (42,305) (7,194,898) Accounted Original Amended for in Current Amount budget budget prior years year remaining 4,500,000 8,400,000 1,971,603 2,500,000 3,928,397 0 10,531,072 4,846,104 724,278 4,960,690 0 0 68,512 77,382 (145,894) 0 0 6,731 22,256 (28,987) 4,500,000 18,931,072 6,892,950 3,323,916 8,714,206 0 3,000,000 0 2,784,785 215,215 4,310,000 5,210,000 3,116,529 122,651 1,970,820 0 8,400,000 650,000 300,000 7,450,000 0 7,140,000 1,171,563 58,075 5,910,362 190,000 1,053,107 589,690 100,710 362,707 4,500,000 24,803,107 5,527,782 3,366,221 15,909,104 0 (5,872,035) 1,365,168 (42,305) (7,194,898) 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, 1997 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) Page 142 Table 20 5,282,200 5,282,200 (1,362,818) (341,456) 6,986,474 Cost to authority Accounted *Real estate sales Original Amended for in Current Amount budget budget prior years year remaining Office building #1 449,300 449,300 $ 41,400,000 41,400,000 26,688,323 5,073,354 9,638,323 80,000,000 80,000,000 6,905,814 1,303,271 71,790,915 5,000,000 5,000,000 5,585,272 0 (585,272) 0 0 2,036,995 85,883 (2,122,878) 0 0 617,248 0 (617,248) 126,400,000 126,400,000 41,833,652 6,462,508 78,103,840 13,900,000 13,900,000 15,937,170 2,367,627 (4,404,797) 26,677,000 26,677,000 7,999,921 2,027,737 16,649,342 41,400,000 41,400,000 750,000 300,000 40,350,000 38,000,000 38,000,000 17,317,410 1,999,867 18,682,723 1,140,800 1,140,800 1,191,969 108,733 (159,902) 121,117,800 121,117,800 43,196,470 6,803,964 71,117,366 5,282,200 5,282,200 (1,362,818) (341,456) 6,986,474 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 1,107,160 1,107,160 Office building #1 449,300 449,300 $ 5,585,272 5,585,272 Page 143 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, 1997 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds $ 9,400,000 9,400,000 0 0 9,400,000 Tax increments received 22,657,749 22,657,749 2,183,518 (1,469,195) 21,943,426 Interest on invested funds 0 0 693,047 111,742 (804,789) Other 0 0 0 0 0 Total sources of funds 32,057,749 32,057,749 2,876,565 (1,357,453) 30,538,637 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 Transfer interest 0 0 0 254,858 (254,858) Administrative costs 500,000 500,000 526 305 499,169 Total uses of funds 31,057,749 31,057,749 189,246 255,163 30,613,340 Funds remaining (or deficient) 1,000,000 1,000,000 2,687,319 (1,612,616) (74,703) 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, 1997 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 144 Table 22 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 2,177,855 261,289 165,033 1,751,533 0 0 0 0 0 0 0 0 0 0 4,088,855 4,088,855 261,289 165,033 3,662,533 529,400 529,400 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 10,496 5,404 580,100 4,088,855 4,088,855 99,964 5,404 3,983,487 0 0 161,325 159,629 (320,954)