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CITY OF EDINA, MINNESOTA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED DECEMBER 31, 1998
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
Year ended December 31, 1998
Department of Finance
John Wallin— Treasurer and Finance Director
Peggy Gibbs — Assistant Finance Director
Anita Westphal— Accountant Assistant
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
Required Supplementary Information:
Year 2000 Issue .............................. ...............................
Combining and Individual Fund and Account Group Financial Statements:
General Fund:
................ 45
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 ................................. ............................... 50
Schedule of Central Services Expenditures — Budget and Actual ..... ............................... 57
Special Revenue Funds:
CombiningBalance Sheet ................................................................... ............................... 59
Combining Statement of Revenues, Expenditures and Changes in
FundBalance .................................................................................... ............................... 60
Debt Service Funds:
CombiningBalance 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:
Combining Balance Sheet ................................................................... ............................... 65
Combining Statement of Revenues, Expenditures and Changes in
FundBalance ( 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
Statement of 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
Art Center Fund:
BalanceSheet ............................................................................... ...............................
92
Statement of Revenues, Expenses and Changes in Retained Earnings ....................
93
Statement of Cash Flows .............................................................. ...............................
94
Edinborough Park/Centennial Lake Fund:
BalanceSheet ............................................................................... ...............................
95
Statement of Revenues, Expenses and Changes in Retained Earnings ...................
96
Statement of Cash Flows .............................................................. ...............................
97
CITY OF EDINA, MINNESOTA
Table of Contents, Continued
Trust and Agency Funds:
Page
Combining Balance Sheet .............................................................. ............................... 99
Deferred Compensation Expendable Trust Fund:
BalanceSheet ................................ ............................... ............................100
Statement of Revenues, Expenses and Changes in Retained Earnings .................. 101
Agency Funds:
Statement of Changes in Assets and Liabilities .............................. ............................102
General Fixed Assets Account Group:
Schedule of General Fixed Assets ......................... ............................... ............................ 104
General Long -term Debt Account Group:
Schedule of General Long -term Debt ................................................. ............................... 106
Supplementary Information:
Exhibit Page
Combined Schedule of Bonded Indebtedness ........................ Exhibit 1 . ............................... 107
Schedule of Changes in Bonded Indebtedness ...................... Exhibit 2 . ............................... 109
Schedule of Bonds Payable ...................... ............................... Exhibit 3 . ............................... 110
Schedule of Debt Service Requirements .. ............................... Exhibit 4 . ............................... 113
Assessed Valuation, Tax Levies and Mill Rates ...................... Exhibit 5 . ............................... 114
Independent Auditors' Report on Compliance and on
Internal Control Over Financial Reporting Based on
an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards .......... Exhibit 6 .... ............................115
Independent Auditors' Report on Compliance with
Requirements Applicable to Each Major Program and
Internal Control Over Compliance in Accordance with
OMB Circular A -133 and on the Schedule of
Expenditures of Federal Awards ............ ............................... Exhibit 7 . ............................... 117
Schedule of Expenditures of Federal Awards ......................... Exhibit 8 . ............................... 119
Notes to Schedule of Expenditures of Federal Awards........... Exhibit 9 . ............................... 120
Schedule of Findings and Questioned Costs .........................
Exhibit 10 ............................... 121
Independent Auditors' Report on Minnesota Legal
Compliance........................................ ...............................
Exhibit 11 ............................... 122
CITY OF EDINA, MINNESOTA
Table of Contents, Continued
PART III -- STATISTICAL SECTION
Table
General Governmental Expenditures by Function
Last Ten Fiscal Years ............................. ............................... Table 1 .......................
General Governmental Revenues by Source
Last Ten Fiscal Years ............................. ............................... Table 2 .......................
Property tax Levies and Collections — Last Ten
FiscalYears ............................................ ...............................
Table 3 ...............
Assessed Value or Tax Capacity and Estimated
Market Value of Taxable Property .......... ...............................
Table 4 ...............
Property Tax Rates — All Overlapping Governments
Last Ten Fiscal Years ............................. ...............................
Table 5 ...............
Special Assessment Collections — Last Ten
FiscalYears ............................................ ...............................
Table 6 ...............
Ratio of Net General Bonded Debt to Assessed
Value/Tax Capacity and Net Bonded Debt per
Capita — Last Ten Fiscal Years ...
Table 7
Page
..123
..124
............125
............126
............ 127
............128
........... ............................... ..............................
Computation of Legal Debt Margin - December 31, 1998........ Table 8 ..............................
Computation of Overlapping Debt - December 31, 1998......... Table 9 ..............................
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General
129
130
131
Expenditures — Last Ten Fiscal Years .. ............................... Table 10 .... ............................132
Revenue Bond Coverage — Last Ten Fiscal Years ................. Table 11 .... ............................133
Property and Construction Values — Last Ten
FiscalYears ........................................... ............................... Table 12 .... ............................134
Principal Taxpayers - December 31, 1998 .............................. Table 13 .... ............................135
Major Employers in the City ...................... ............................... Table 14 .... ............................136
LaborForce Data ...................................... ............................... Table 15 .... ............................137
Miscellaneous Statistics - December 31, 1998 ....................... Table 16 .... ............................138
Sources and Uses of Public Funds
for 50th & France -No. 1200, a Tax Increment
FinancingDistrict ................................ ............................... Table 17 .... ............................140
Sources and Uses of Public Funds
for Southeast Edina Redevelopment District -
No. 1201, a Tax Increment Financing District ................... Table 18 .... ............................141
Sources and Uses of Public Funds
for Grandview Area Redevelopment District-
No. 1202, a Tax Increment Financing District ................... Table 19 .... ............................142
Sources and Uses of Public Funds
for Southeast Edina Redevelopment District -
No. 1203, a Tax Increment Financing District ................... Table 20 .... ............................143
CITY OF EDINA, MINNESOTA
Table of Contents, Continued
Sources and Uses of Public Funds
for Southeast Edina Economic Development
District -No. 1204, a Tax Increment Financing
District............................................. ............................... Table 21 .... ............................144
Sources and Uses of Public Funds
for 70th Street and Cahill Road District -No.
1207, a Tax Increment Financing District .......................... Table 22.... ............................145
INTRODUCTORY
SECTION
CITY OF EDINA, MINNESOTA
Elected and Appointed Officials
December 31, 1998
Elected:
Mayor - -Glenn L. Smith
Council:
Dennis Maetzold
James Hovland
Nan Faust
Michael Kelly
Appointed:
Manager- Gordon Hughes
Treasurer and Finance Director -John Wallin
Assistant Finance Director -Peggy Gibbs
Clerk -Debra Mangen
`First Official business day.
Page 1
Term of office
expires January"
2001
2003
2003
2001
2001
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'��APOM�6
April 2, 1999
To the Honorable Mayor and
Members of the City Council
City of Edina, Minnesota:
Page 2
City of Edina
In accordance with State Statutes and local charter provision, I hereby transmit the annual
financial report of the City of Edina, Minnesota as of December 31,1998 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 1998 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,
ordon Hughes
City Manager
Page 4
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City of Edina
April 2, 1999
To the Honorable Mayor,
Members of the City Council,
and City Manager
City of Edina, Minnesota:
The Comprehensive Annual Financial Report of the City of Edina (the City), for the fiscal year
ended December 31,1998, 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 $30,963,274 in 1998, an increase of 9.4 percent
over 1997. General property taxes produced 66.4 percent of general revenues compared to
62.4 percent last year. The amount of revenues from various sources and the increase
(decrease) over last year are shown in the following table:
Current tax collections were 99.3 percent of the tax levy, up .46 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 99.7 percent, an increase of 2.80 percent from last year.
Increase
Percent
(decrease)
Revenue Source
Total
of total
from 1997
Taxes
$20,567,867
66.43%
$ 2,914,246
Special assessments
844,070
2.73%
(111,136)
Franchise fee
296,427
.96%
(35,100)
Licenses and permits
2,091,365
6.75%
702,397
Intergovernmental
2,551,452
8.24%
554,708
Charges for services
1,833,148
5.92%
(1,009,775)
Fines and forfeitures
691,355
2.23%
128,445
Investment income
1,353,521
4.37%
154,270
Interest on funds held with fiscal agent
43,331
.14%
(955,519)
Sale and rental of property
86,639
0.28%
(65,759)
Other revenues
604,099
1.95%
373,445
Total revenues
$30,963,274
100.00%
$2,650,222
Current tax collections were 99.3 percent of the tax levy, up .46 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 99.7 percent, an increase of 2.80 percent from last year.
Page 6
Charges for services revenues were 5.9 percent of general revenues compared to 10.0 percent
in 1997.
Expenditures for general governmental purposes within the General, Special Revenue, Debt
Service and Capital Project Funds totaled - $31;997,730 a decrease of 21.7 percent over 1997.
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
$31,997,730 100.0% $(8,893,375)
Expenditures for public safety were 25.4 percent of total general governmental expenditures.
The increase from 1997 is primarily due to the purchase of new fire truck.
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 1998:
Gross bonded debt outstanding, January 1, 1998
Add bonds issued in fiscal year 1998
Deduct bonds redeemed in fiscal year 1998
Gross bonded debt outstanding, December 31, 1998
Deduct sinking fund assets, December 31, 1998
Net bonded debt, December 31, 1998
.8172
$ 1,479
$94,385,000
0
24,125,000
70,260,000
(589,371)
$69,670,629
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 1997
$2,528,560
7.9%
$281,520
8,131,293
25.4%
413,959
4,084,651
12.8%
547,210
1,960,111
.6.1%
(71,150)
333,793
1.0%
(6,717)
1,104,738
3.5%
(493;009)
7,530,051
23.56/6
(9,266,773)
2,224,724
7.0%
104,724
4,099,809
12.8%
(403,139)
$31,997,730 100.0% $(8,893,375)
Expenditures for public safety were 25.4 percent of total general governmental expenditures.
The increase from 1997 is primarily due to the purchase of new fire truck.
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 1998:
Gross bonded debt outstanding, January 1, 1998
Add bonds issued in fiscal year 1998
Deduct bonds redeemed in fiscal year 1998
Gross bonded debt outstanding, December 31, 1998
Deduct sinking fund assets, December 31, 1998
Net bonded debt, December 31, 1998
.8172
$ 1,479
$94,385,000
0
24,125,000
70,260,000
(589,371)
$69,670,629
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 31,1998 the City had $53,090,000 of Tax Increment Bonds outstanding, excluding
General Obligation, Improvement and Revenue Bonds. $737,753 was available in the General
Debt Service Fund for payment of these obligations, resulting in $52,352,247 net general debt at
December 31,1998.
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 1998 the City earned
$1,205,360 in interest income. The following is a list of the City's cash and investments by
classification as of December 31, 1998:
Cash
$6,508,899
Cash deficit
(6,267,382)
Cash with plan administrator
3,095,848
Cash with fiscal agents
410,843
Certificates of deposit
581,800
Commercial paper
12,903,174
Government securities
13,462,520
Money market investments
3,668,514
$34,364,216
Capital Project Funds
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, 1998 the general fixed assets of the City amounted to $83,354,041 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 1998 and 1997 is as follows:
Utilities
Liquor
Swimming pool
Golf course
Arena
Art Center
Edinborough Park/Centennial Lake
Income (loss)
1998
855,682
767,299
1997.
$543,967
720,658
69,383 (164,313)
446,469 184,030
(198,708) (214,861)
(220,309) (73,434)
(343,155) (402,273)
$1,376,661 $582,934
Operating transfers to /from other funds for various purposes were $262,000 and $72,000 in
1998 and $214,408 and $1,600,000 in 1997, 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 1998.
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,
John Wallin, CPA
Treasurer and Finance Director
-11446�
Peggy�Y3iMbs
Assistant Finance Director
FINANCIAL
SECTION
khA461 Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
.a.
Independent;=Auditors'= Report_:-
To the Honorable Mayor and
Members of the City Council
City of Edina, Minnesota:
We have audited the general purpose financial statements of the City of Edina, Minnesota (the
City), as of and for the year ended December 31, 1998. These general purpose financial statements
are the responsibility of the City's management. Our responsibility is to express an opinion on
these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government
Auditing Standards, issued by the Comptroller General of -the 'United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
general purpose financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made'by management,.as well as evaluating the overall 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 as of December 31, 1998, and the results of its
operations and cash flows of its proprietary fund types for the year then ended, in conformity with
generally accepted accounting principles.
As discussed in note 20 to the general.purpose financial statements, the City changed its method of
accounting for investments to adopt the provisions of Governmental Accounting Standards Board
Statement No. 31, Accounting and Financial Reporting for. Certain Investments and for External
Investment Pools.
The year 2000 supplementary information on page 45 is not a required part of the general purpose
financial statements, but is supplementary information required by the Governmental Accounting
Standards Board, and we did not audit and do not express an opinion on such information. Further,
we were unable to apply to the information certain procedures prescribed by professional standards
because of the nature of the subject matter underlying the disclosure requirements and because
sufficiently specific criteria. regarding the matters to be disclosed have not been established. In
addition, we do not provide assurance that the City is or will become year 2000 compliant, that the
City's year 2000 remediation efforts will be successful in whole or in part, or that parties with
which the City does business are or will become year 2000 compliant.
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 bf the general purpose financial statements of the
City. 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 statemerits taken as.a whole.
9
❑ ❑ ❑❑ Member Firm of KPMG International
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-A7O. Peat Marwick LLP
The data designated as the statistical section in the accompanying.table of contents is. presented for
purposes of additional analysis And "is 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 general purpose financial statements -and, accordingly, we express no opinion on it.
In accordance with Government Auditing Standards, we have also issued our report dated April 2,
1999, on our consideration of the City's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulaions; c`onfracts, and 'grants.
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April 2, 1999
10
Page 11
CITY OF EDINA, MINNESOTA
Combined Balance.Sheet - All Fund Types and Account Groups
December 31, 1998
(with comparative totals for December 31, 1997)
Accounts
Customers
Interest
Special assessments
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 -term debt
Total assets and other debits
Liabilities, Fund Eauitv 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
Property tax abatement payable
Deferred revenue
Advance from otherfunds (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
380,141
72
Governmental fund types
35,374
0
0
Special
Debt
Capital
Assets and Other Debits
General
Revenue
Service
Projects
Cash (note 2)
$ 0
0
0
5.5,204
Petty cash _and,change funds (note 2)
2,210
0
0
0
Investments (note,2)
7,527,080.
953,417
0
22,105,857
Caswand investments with
0
0
35,889
0
.plan administrators (notes 2 and +7)
0
0
0
0
Cash and investments with fiscal agents
0
0
409,666
0
Accounts
Customers
Interest
Special assessments
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 -term debt
Total assets and other debits
Liabilities, Fund Eauitv 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
Property tax abatement payable
Deferred revenue
Advance from otherfunds (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
380,141
72
13,970
35,374
0
0
0
0
` 5,600
9,470
0
153,910
0
0
2,548,492
120,268
0
0
0
224,533
3,882;766
0
322,469
0
277,184
10,038
7,110
209
0
0
0
0
35,889
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$ 12.110.870
972.997
3.301.707
22.695.355
386,591
14,723
0
235,224
313,642
0
0
237
0
0
0
169,666
0
0
0
0
221,821
7,506
31,718
5,604,290
256,396
2,689
120,753
18,489
12,011
0
0
0
0
0
0
0
0
0
0
0
0
0
2,427,830
120,267-
0
0
0
0
0
0
0
0
0
0
0
0
1,190,461
24,918
2,580,301
6,148,173
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,379,739
0
721,406
450,537
6,812,960
0
0
0
2,727,710
948,079
0
16,096,645
10,920,409
948,079
721,406
16,547,182
$ 12,110,870
972,997
3;301,707
22,695,355
Page 12
Proprietary
Fiduciary
fund type
fund type
Account
groups
General
General
Totals
Trust &
Fixed
Long -term
(memorandum only)
Enterprise
Agency
Asset
Debt
1998
1997
0
172,382
0
0
227,586
189,275
11,721
0
0
0
13,931
12,455
0
29,654
0
0
30,1616,008
32,078,844
0
3,095,848
0
0
3,095,848
2,510,513
1,177
0
0
0
410,843
21,724,134
93,565
0
0
0
523,122
423,176
2,083,336
0
0
0
2,083,336
2,117,545
48,674
0
0
0
217,654
198,577
46,392
0
0
0
2,715,152
2,804,188
0
0
0
0
224,533
46,385
1,923,578
0
0
0
6,128,813
7,985,870
658
40,960
0
0
336,159
259,706
982,249
0
0
0
982,249
913,363
0
0
0
0
35,889
21,080
953,429
0
0
0
953,429
1,596,747
39,848,373
0
83,354,041
0
123,202,414
117,539,033
59,246
0
0
0
59,246
65,831
0
0
0
721,406
721,406
19,464,707
0
0
0
62,111,915
62,111,915
62,846,317
46.052.398
3338.844
83.354.041
62.833.321
234.659.533
272.797.746
654,415
112
0
0
1,291,065
1,368,115
86,382
0
0
0
400,261
338,430
18,193
0
0
0
187,859
248,254
238,589
0
0
0
238,589
394,506
250,000
13,478
0
0
6,128,813
7,985,870
366,836
229,406
0
0
994,569
1,138,269
132,953
0
0
582,459
727,423
653,254
6,852
0
0
0
6,852
6,170
0
0
0
0
0
1,488,691
5,040
0
0
0
2,553,137
2,652,788
953,429
0
0
0
953,429
1,596,747
310,000
0
0
540,862
850,862
953,989
8,550,000
0
0
61,710,000
70,260,000
94,385,000
11,572,689
242,996
0
62,833,321
84,592,859
113,210,083
0
0
83,354,041
0
83,354,041
78,124,113
6,617,920
0
0
0
6,617,920
6,096,611
1,607,870
0
0
0
1,607,870
1,607,870
26,253,919
0
0
0
26,253,919
24,404,949
0
3,095,848
0
0
5,647,530
23,799,314
0
0
0
0
6,812,960
5,708,632
0
0
0
0
19,772,434
19,846,174
34,479,709
3,095,848
83,354,041
0
150,066,674
159,587,663
46,052,398
3,338,844
83,354,041
62,833,321
234,659,533
272,797,746
Page 13
CITY OF EDINA, MINNESOTA
Combined Statement of Revenues, Expenditures and Changes in Fund Balance -
AII Governmental Fund Types
Year ended
December 31, 1998
(with comparative totals for year ended December 31, 1997)
Governmental fund types
Special
Debt
Capital
General
Revenue
Service
Projects
Revenues:
Taxes (note 3) $
13,053,978
0
729,681
6,784,208
Special assessments
0
0
699,354
144,716
Franchise fees
0
296,427
0
0
Licenses and permits
2,091,365
0
0
0
Intergovernmental
2,035,566
96,368
0
419,518
Charges for services
1,612,038
0
0
221,110
Fines and forfeitures
691,355
0
0
0
Investment Income
148,161
78,996
0
1,126,364
Interest on funds held with fiscal agent
0
0
43,331
0
Sales and rental of property
83,774
0
0
2,865
Donations
0
0
0
127,313
Other revenues
14,125
0
0
462,661
Total revenues
19,730,362
471,791
1,472,366
9,288,755
Expenditures:
Current:
General government
2,528,560
0
0
0
Public safety
8,131,293
0
0
0
Public works
4,084,651
0
0
0
Parks
1,960,111
0
0
0
Unallocated general
333,793
0
0
0
Other
30,019
431,176
1,500
642,043
Capital outlay:
General government
28,377
0
0
0
Public safety
837,573
0
0
0
Public works
626,455
0
0
0
Parks
69,084
0
0
0
Infrastructure
0
0
0
5,965,687
Other
0
2,875
0
0
Debt Service:
Bond principal
0
0
2,224,724
0
Interest and fiscal charges
0
0
4,099,809
0
Total expenditures
18,629,916
434,051
6,326,033
6,607,730
Income (loss) before other financing sources
1,100,446
37,740
(4,853,667)
2,681,025
Other financing sources (uses):
Operating transfers in (out):
Operating transfers in (out) - General Fund
0.
0
0
582,918
Operating transfers in (out) - Swimming Pool Fund
150,000
0
0
0
Operating transfers in (out) - Capital Projects Fund
(322,918)
0
0
0
Operating transfers in (out)- Edinborough Park Fund
(222,000)
0
0
0
Operating transfers in (out) -HRA
(260,000)
0
5,166,948
0
Operating transfers in (out) - General Debt Service Fund
0
0
(1,796,306)
(3,370,642)
Parkland dedication
387,136
0
0
0
Proceeds from sale of bonds
0
0
0
0
Proceeds of refunding bonds
0
0
0
0
Payment for refunded bonds
0
0
(17,260,276)
0
Total other financing sources (uses)
(267,782)
0
(13,889,634)
(2,787,724)
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses
832,664
37,740
(18,743,301)
(106,699)
Fund balance - January 1 as restated (note 20)
10,087,745
910,339
19,464,707
16,653,881
Cummulative effect of adoption of GASB 32 (note 7 and 22)
0
0
0
0
Fund balance - December 31 $
10,920,409
948,079
721,406
16,547,182
See accompanying notes to financial statements
Page 14
Totals
Fiduciary Type (memorandum only)
Expendable
Trust 1998 1997
0
20,567,867
17,653,621
0
844,070
955,206
0
296,427
331,527
0
2,091,365
1,388,968
0
2,551,452
1,996,744
0
1,833,148
2,842,923
0
691,355
562,910
0
1,353,521
1,199,251
0
43,331
1,038,850
0
86,639
152,398
0
127,313
4,025
606,107
1,082,893
805,066
606,107
31,569,381
28,931,489
0
2,528,560
2,247,040
0
8,131,293
7,717,334
0
4,084,651
3,537,441
0
1,960,111
2,031,261
0
333,793
340,510
20,773
1,125,511
1,639,932
0
28,377
51,638
0
837,573
334,523
0
626,455
431,291
0
69,084
104,058
0
5,965,687
15,867,676
0
2,875
7,638
0
2,224,724
2,120,000
0
4,099,809
4,502,948
20,773
32,018,503
40,933,290
585,335
(449,121)
(12,001,801)
0
582,918
78,142
0
150,000
0
0
(322,918)
(333,000)
0
(222,000)
(1,600,000)
0
4,906,948
5,111.710
0
(5,166,948)
(4,856,852)
0
387,136
331,466
0
0
7,573,354
0
0
5,000,000
0
(17,260,276)
(8,080,000)
0
(16,945,140)
3,224,820
585,335
(17,394,261)
(8,776,981)
2,510,513
49,627,185
56,192,815
0
0
1,938,286
3,095,848
32,232,924
49,354,120
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, 1998
(with comparative totals for year ended December 31, 1997)
Fund balance - January 1 as restated 10,087,745
Fund balance - December 31 10.920.409
See accompanying notes to financial statements
General
Variance
favorable
Budget
Actual
(unfavorable)
Revenues:
Taxes (note 3)
$ 12,854,140
13,053,978
199,838
Licenses and permits
1,067,000
2,091,365
1,024,365
Intergovernmental
1,503,315
2,035,566
532,251
Charges for services
1,507,080
1,612,038
104,958
Fines and forfeitures
430,000
691,355
261,355
Investment income
15,000
148,161
133,161
Sales and rental of property
50,000
83,774
33,774
Other revenues
87,228
14,125
(73,103)
Total revenues
17,513,763
19,730,362
2,216,599
Expenditures:
Current:
General government
2,438,782
2,528,560
(89,778)
Public safety
8,222,748
8,131,293
91,455
Public works
3,671,952
4,084,651
(412,699)
Parks
2,099,728
1,960,111
139,617
Unallocated general
349,056
333,793
15,263
Other
0
30,019
(30,019)
Capital outlay:
General government
27,091
28,377
(1,286)
Public safety
479,638
837,573
(357,935)
Public works
513,258
626,455
(113,197)
Parks
111,510
69,084
42,426
Total expenditures
17,913,763
18,629,916
(716,154)
Excess (deficiency) of revenues over expenditures
(400,000)
1,100,446
1,500,445
Other financing sources (uses):
Operating transfers in
400,000
150,000
(250,000)
Operating transfers out
0
(804,918)
(804,918)
Parkland dedication
0
387,136
387,136
Total other financing sources (uses)
400,000
(267,782)
(667,782)
Excess (deficiency) of revenues and other financing
sources over expenditures and other financing uses
$ 0
832,664
832,663
Fund balance - January 1 as restated 10,087,745
Fund balance - December 31 10.920.409
See accompanying notes to financial statements
Page 16
Totals
(memorandum only)
Special Revenue
1998
1997
Variance
Variance
favorable
favorable
Budget
Actual
(unfavorable)
Budget
Actual
(unfavorable)
Actual
0
0
0
12,854,140
13,053,978
199,838
12,105,724
0
0
0
1,067,000
2,091,365
1,024,365
1,388,968
181,842
96,368
(85,474)
1,685,157
2,131,934
446,777
1,826,155
0
0
0
1,507,080
1,612,038
104,958
1,576,224
0
0
0
430,000
691,355
261,355
562,910
0
0
0
15,000
148,161
133,161
30,812
0
0
0
50,000
83,774
33,774
149,047
0
0
0
87,228
14,125
(73,103)
45,186
181,842
96,368
(85,474)
17,695,605
19,826,730
2,131,125
17,685,026
0
0
0
2,438,782
2,528,560
(89,778)
2,247,040
0
0
0
8,222,748
8,131,293
91,455
7,717,334
0
0
0
3,671,952
4,084,651
(412,699)
3,537,441
0
0
0
2,099,728
1,960,111
139,617
2,031,261
0
0
0
349,056
333,793
15,263
340,510
181,842
96,368
85,474
181,842
126,387
55,455
299,674
0
0
0
27,091
28,377
(1,286)
51,638
0
0
0
479,638
837,573
(357,935)
334,523
0
0
0
513,258
626,455
(113,197)
431,291
0
0
0
111,510
69,084
42,426
104,058
181,842
96,368
85,474
18,095,605
18,726,285
(630,679)
17,094,770
0
0
0
(400,000)
1,100,445
1,500,446
590,256
0
0
0
400,000
150,000
(250,000)
254,858
0
0
0
0
(804,918)
(804,918)
(1,933,000)
0
0
0
0
387,136
387,136
331,466
0
0
0
400,000
(267,782)
(667,782)
(1,346,676)
0
0
0
0
832,664
832,663
(756,420)
0
10,087,745
10,700,712
0
10,920,409
9,944,292
CITY OF EDINA, MINNESOTA
Combined Statement of Revenues, Expenses and Changes in
Retained Earnings -- All Proprietary Fund Types
Year ended December 31, 1998
(with comparative totals for year ended December 31, 1997)
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):
Investment income
Donations
Miscellaneous expense
Interest earned from fiscal agent
Interest and fiscal charges
Interest on capital lease
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
Golf course 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
1998 1997
$ 7,986,577 7,426,218
6,039,893 5,607,325
1,946,684 1,818,893
14,174,941 13,275,588
16,121,625 15,094,481
3,185,784
3,985,404
3,059,523
1,081,832
1,212,156
2,020,208
14,544,907
1,576,718
301,325
1,205
12,789
9,779
(485,626)
(17,811)
(15,132)
(6,585)
(200,056)
1,376,662
72,000
0
222,000
40,000
(262,000)
0
0
72,000
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
0
(100,000)
(22,408)
(25,000)
1,600,000
1,448,662 2,182,934
400,309 214,074
1,848,971 2,397,008
26,012,819 23,628,830
0 (13,019)
$ 27.861.790 26,012,819
Page 18
CITY OF EDINA, MINNESOTA
Combined Statement of Cash Flows - All Proprietary Fund Types
Year ended December 31, 1998
(with comparative totals for year ended December 31, 1997)
Totals
1998
1997
Cash flows from operating activities:
Operating income
$ 1,576,717
977,074
Adjustments to reconcile operating income to net cash provided by operating activities:
Depreciation expense
2,020,208
1,779,721
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
75,093
(59,032)
(Increase) decrease in customers receivable
34,209
(28,092)
(Increase) decrease in special assessments
(24,239)
(1,526)
(Increase) decrease in taxes
236
(236)
Decrease in due from other governments
(658)
3,757
Increase in inventory
(68,886)
(115,757)
(Increase) decrease in prepaid expenses
0
0
Decrease in accounts payable
(68,276)
266,609
Decrease in salaries payable
9,656
19,564
Increase in contracts payable
(5,952)
14,357
Increase (decrease) in accrued interest payable
(155,917)
(13,352)
Decrease in due to other governments
(36,121)
289,668
Increase in compensated absences payable
2,645
6,772
Increase (decrease) in deposits payable
682
(3,981)
Increase in deferred revenue
0
(24,401)
Increase in due from other funds
(1,023,564)
(817,830)
Increase (decrease) in due to other funds
0
(220,458)
Total adjustments
759,116
1,095,783
Net cash provided by operating activities
2,335,833
2,072,857
Cash flows from noncapital financing activities:
Donations
13,692
23,836
Miscellaneous expense
10,081
6,556
(Increase) decrease in advance to other funds
643,318
194,137
Increase in advance from other funds
(643,318)
(1,114,668)
(Decrease) in reserve for construction
72,000
1,600,000
Operating transfers out -- General Fund
(236,000)
(67,000)
Operating transfers in-- Revolving Fund
458,000
214,408
Operating transfers (out) - -Art center
40,000
0
Operating transfers in- Liquor Store
(262,000)
(100,000)
Operating transfers (out)-Arena
0
(22,408)
Operating transfers (out)-Gun Range
0
(25,000)
Operating transfers in -Golf dome
0
(13,019)
Net cash used for noncapital financing activities
95,773
696,842
Cash flows from capital financing activities
Net acquisition of capital assets
(1,532,043)
(1,679,789)
Gain on sale of fixed assets
(15,132)
(154,067)
Principal paid on revenue bonds
(4,640,000)
(685,000)
Principal paid on capital lease
(50,000)
(45,000)
Interest earned from fiscal agent
0
182,924
Interest paid on capital lease
(108,863)
(236,638)
Interest paid on bonds
(394,574)
(586,278)
Net cash used for capital financing activities
(6,740,612)
(3,203,848)
Cash flows from investing activities
Change in investments
10,266
0
(Increase) decrease in interest receivable
4,936
16,063
Investment income
301,325
374,217
Net cash provided by investing activities
316,527
390,280
Net (decrease) in cash and cash equivalents
(3,992,479)
(43,869)
Cash and cash equivalents, beginning of year
12,898
4,005,377
Cash and cash equivalents, end of year
$ (3.979.5811
3.961.508
See accompanying notes to financial statements
Page 19
CITY OF EDINA, MINNESOTA
Notes to Financial Statements
December 31,1998
(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)
B
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.
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-
(Continued)
Page 21
CITY OF EDINA, MINNESOTA
where the intent of the governing body is that the costs (expenses, including
depreciation) of providing goods or services to the general public on a continuing
basis are financed or recovered primarily through user charges; or (b) where the
governing body has decided that periodic determination of revenues earned,
expenses incurred, and /or net income is 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
as an agent 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
(Continued)
Page 22
CITY OF EDINA, MINNESOTA
Governmental Funds. The exception to this general rule is for revenue bonds,
which are accounted for in Enterprise Funds.
The two account groups are not "funds." They are concerned only with the
measurement of financial position. They are not involved with measurement of
results of operations.
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
(Continued)
Page 23
CITY OF EDINA, MINNESOTA
assessments, intergovernmental revenues, charges for service, and investment
income. Major revenues that are determined not to be susceptible to accrual
because they are not available soon enough to pay liabilities of the current
period or are not objectively measurable include delinquent property taxes and
assessments, licenses, permits, fines and forfeitures.
Expenditures are generally recognized under the modified accrual basis of
accounting when the related fund liability is incurred. Exceptions to this general
rule include principal and interest on long -term debt which is recognized when
due.
The Proprietary Fund types are accounted for using the accrual basis of
accounting. Their revenues are recognized when earned and their expenses are
recognized when incurred. Unbilled utility service receivables are recorded at
year end.
During the course of normal operations, the City has numerous transactions
between funds including expenditures and transfers of resources to provide
services, construct assets and service debt. The Governmental and Proprietary
Funds' financial statements generally reflect such transactions as transfers.
Nonrecurring or nonroutine transfers of equity between funds are recorded as
equity transfers and, accordingly, are reported as additions or deductions from
fund balances of Governmental Fund types.
E. Budgets and Budgetary Accounting
The City adopts an annual budget for the General Fund and the Community
Development Block Grant Fund, a special revenue fund. (The council has
elected not to prepare a budget for the Communications Fund, a special revenue
fund.) The budgets are prepared on the modified accrual basis of accounting.
The City follows these procedures in establishing the budgetary data reflected in
the financial statements:
The City Manager submits to the City Council a proposed operating
budget for the fiscal year commencing the following January 1. The
operating budget includes proposed expenditures and the means of
financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted by the passage of a resolution by the City
Council.
4. Formal budgetary integration is employed as a management control
device during the year.
5. Budgets for the General Fund and the Community Development Block
Grant Fund are adopted on a basis consistent with generally accepted
accounting principles (GAAP).
(Continued)
F.
G.
H.
Page 24
CITY OF EDINA, MINNESOTA
6. The City Council may authorize transfers of budgeted amounts between
departments.
7. Reported budget amounts are as originally adopted or as amended by
Council- approved supplemental appropriations and budget transfers.
8. Expenditures may not legally exceed appropriations by department
unless offset by increases in revenues. All unencumbered
appropriations lapse at year end.
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.
Cash
Cash balances from all funds are pooled together and invested to the maximum
extent favorable rates. This also allows certain funds to generate a temporary
cash overdraft. Interest earned is allocated as determined by the Investment
Advisory Committee.
Investments
The City's investments, including deferred compensation investments and
investments with fiscal agents, are stated at fair value.
Statement of Cash Flows
For purposes of the statement of cash flows, the City's Enterprise Funds
consider all highly liquid investments with a maturity of three months or less
when purchased to be cash equivalents.
(Continued)
Page 25
CITY OF EDINA, MINNESOTA
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 to /from other
fund for the long -term portion.
K. Inventory
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
expenditures 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, 1998 reported in the
Governmental Funds, Proprietary Funds and General Long -term Debt Account
Group was $12,011, $132,953, $582,459 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.
(Continued)
Page 26
CITY OF EDINA, MINNESOTA
O. Reclassifications
Certain 1997 amounts were reclassified to conform to the 1998 presentation.
P. GASB 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),
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,
1998 the City had no deposits that were uninsured or uncollateralized. The deposits
were insured or collateralized by securities held by the City's agent in the City's name.
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
(Continued)
Page 27
CITY OF EDINA, MINNESOTA
Subsidiaries, of the highest quality, and maturing in 270 days or less;
(f) Guaranteed investment contracts issued or guaranteed by United States
commercial banks or domestic branches of foreign banks or United States
insurance companies or their subsidiaries;
(g) Repurchase or reverse repurchase agreements with banks that are members
of the Federal Reserve System with capitalization exceeding $10,000,000, a
primary reporting dealer in U.S. government securities to the Federal Reserve
Bank of New York, or certain Minnesota securities broker - dealers; and
(h) Futures contracts sold under authority of Minnesota Statutes 471.56, subdivision
5.
The City's 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 counterparty's trust department or agent in the City's name.
The investment balances at December 31, 1998 were as follows:
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
SBA Pool
Municipal Bonds
Cash and investments with fiscal agents
Cash and investments with plan administrators
Total investments
Credit Risk Category
Category
Category
Fair
1
2
Value
$ 581,800
0
581,800
3,955,625
8,947,549
12,903,174
0
3,668,514
3,668,514
0
3,355,408
3,355,408
656,174
2,154,849
2,811,023
0
226,046
226,046
0
1,489,598
1,489,598
200,126
1,104,639
1,304,765
745,670
1,030,010
1,775,680
2,500,000
0
2,500,000
$ 8,639,395
21,976,613
30,616,008
410,843
3,095,848
$ 34,122,699
(Continued)
Page 28
CITY OF EDINA, MINNESOTA
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 $458,085 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 material
adverse effect on the yield to maturity of the collateralized mortgage obligations.
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.
Deposits at December 31, 1998 were as follows:
Checking accounts
Cash on hand
Cash with trustee
(3) Property Taxes
Carrying
Bank
Amount
balance
$ 55,204
931,283
13,931
0
172,382
172,382
$ 241,517
1,103,665
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)
Page 29
CITY OF EDINA, MINNESOTA
(4) Fixed Assets
A summary of changes in general fixed assets during 1998 is as follows:
A summary of proprietary fund fixed assets at December 31,1998 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
926,233
12,458,976
11,925,158
13,328,847
15,238,705
701,521
4,577,081
516,097
468,580
73,241
65,911,620
(26,063,247)
$39,848,373
(Continued)
Balance
Balance
January 1
Additions
Deletions
December 31
Land
$22,503,715
370,735
0
22,874,450
Land improvements
12,881,257
0
0
12,881,257
Buildings
20,453,411
701
0
20,454,112
Furniture & fixtures
999,719
318,592
81,076
1,237,235
Vehicles
3,429,689
1,056,306
287,726
4,198,269
Sidewalks
310,995
0
0
310,995
Leasehold irrpravernents
190,330
0
0
190,330
Miscellaneous equipment
379,591
5,275
16,209
368,657
Park & playground equipment
841 ,438
46,307
14,474
873,271
Hgfmay equipment
1,903,213
99,672
39,576
1,963,309
Police equipment
623,979
65,809
0
689,788
Fire equipment
1,339,888
148,937
0
1,488,825
Election equipment
138,114
0
0
138,114
Engineering Equipment
97,944
13,526
15,845
95,625
Traffic signals
153,570
0
0
153,570
Tools
5,812
0
0
5,812
Parks
9,148,021
584,527
0
9,732,548
Construction in progress
2,723,427
2,974,447
0
5,697,874
Total
$78,124,113
5,684,834
454,906
83,354,041
A summary of proprietary fund fixed assets at December 31,1998 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
926,233
12,458,976
11,925,158
13,328,847
15,238,705
701,521
4,577,081
516,097
468,580
73,241
65,911,620
(26,063,247)
$39,848,373
(Continued)
CITY OF EDINA, MINNESOTA
(5) Long -term Debt
Bonded Debt
Page 30
The City has four types of bonded debt outstanding at December 31,1998: 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 1998
Tax Increment Bonds
2003-2009
4.25 - 7.30
53,090,000
General Obligation Bonds
1999-2017
4.25 - 5.75
8,090,000
Improvement Bonds
1997-2001
4.00 - 5.20
530,000
Revenue Bonds
1997-2013
3.80 - 7.30
8,550,000
Total
0
19,300,000
$70,260,000
Changes in long -term debt during the year were as follows:
(Continued)
Balance
Balance
January 1,
Issued/
Redeemed/
December 31,
1998
increases
decreases
1998
Tax Increment Bonds
72,390,000
0
19,300,000
53,090,000
General Obligation Bonds
8,090,000
0
0
8,090,000
Improvement Bonds
715,000
0
185,000
530,000
Revenue Bonds
13,190,000
0
4,640,000
8,550,000
94,385,000
0
24,125,000
70,260,000
(Continued)
Page 31
CITY OF EDINA, MINNESOTA
The City had the following revenue bonds outstanding at December 31, 1998:
Recreation Facility Bonds, Series 1992A 3,755,000
Recreation Refunding Bonds, Series 1992C 4,375,000
Utility Refunding Bonds, Series 1992D 420,000
$8,550,000
The Recreation Refunding Bonds (Golf Course Bonds) are general obligation revenue
bond issues payable from the Golf Course Enterprise Fund with any deficiency to be
provided first from Liquor Fund revenue and then from general property taxes.
The Recreation Facility Bonds are general obligation revenue bond issues payable from
the Golf Course, Ice Arena and Swimming Pool Funds with any deficiency to be
provided first from Liquor Fund revenue and then from general property taxes.
The Utility Bonds are general obligation revenue bond issues payable from the Utility
Fund and then from general property taxes.
During 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
(Continued)
Page 32
CITY OF EDINA, MINNESOTA
interest rate of 9.70 percent and $5,125,000 of the 1989 Taxable Series bonds with an
original net interest rate of 10.273 percent. The net proceeds of $11,035,398 (after
payment of $214,602 including the discount and issuance costs) were used to purchase
U.S. Government securities. Those securities were deposited in an irrevocable trust
with an escrow agent to provide for all future debt service payments on the 1988 and
1989 Taxable Series bonds. As a result, the 1988 and 1989 Taxable Series bonds are
considered to be "in-substance" defeased and the liability for those bonds has been
removed from the general long -term debt account group.
The City advance refunded the 1988 and 1989 taxable bonds to reduce its total debt
,service payments over the next 13 years by $1,788,562.89, and to obtain an economic
gain (difference between the present values of the debt service payments on the old
and new debt) of $1,526,103.67.
The City issued $4,650,000 General Obligation Recreational Facility Refunding Bonds,
Series 1992C to replace the Golf Course and Recreational Facility Bonds of 1985, 1988
and 1989. The 1985 issue was refunded in 1996 by means of a "crossover' refunding.
The 1988 and 1989 issues will be refunded by means of "crossover' refunding in 1998.
The cumulative savings will be $199,462, and the net present value savings is
$113,788.
The annual requirements to amortize all debt outstanding as of December 31, 1998,
including interest payments of $26,863,650 are as follows:
Year ending
Tax
General
December 31
Increment
Obligation
Improvement
Revenue
Total
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
10,921,343
0
8,995,060
71,855,802
$
71,494,423
12,995,288
570,010
12,063,929
97,123,650
(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, 1998, the legal debt margin was $77,265,170 calculated as follows:
Market value $ 4,267,758,501
Debt limit - 2% of market value 85,355,170
Amount of general obligation $ 70,260,000
debt
Less: Tax increment bonds $ 53,090,000
Improvement bonds 530,000
Revenue bonds 8.550.000
Total deductions 62,170,000
Total amount of debt
applicable to debt limit 8,090,000
Legal debt margin $ 77,265,170
(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 1998.
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 $
205,634
Current tax capacity value
1,378,939
Captured tax capacity value:
Retained by authority
1,173,305
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, 1998 $ 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
$ 184,934
Current tax capacity value
2,735,793
Captured tax capacity value:
Retained by authority
2,550,859
Shared with other taxing districts
0
General obligation tax increment bonds issued
22,110,000
Total loans incurred
0
Amounts redeemed
9,890,000
Outstanding bonds and loans at December 31, 1998 $ 12,220,000
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, 1998
$ 365,803
1,052,865
687,062
0
4,550,000
0
1,100,000
$ 3,450,000
(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
$ 232,669
Current tax capacity value
1,322,598
Captured tax capacity value:
Retained by authority
1,089,929
Shared with other taxing districts
0
General obligation tax increment bonds issued
35,734,724
Total loans incurred
0
Amounts redeemed
1,464,724
Outstanding bonds and loans at December 31, 1998 , $ 34,270,000
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 Decertified
Current tax capacity value Decertified
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, 1998 $ 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 $ 50,718
Current tax capacity value 279,447
Captured tax capacity value:
Retained by authority 228,729
Shared with other taxing districts 0
General obligation tax increment bonds issued 0
Total loans incurred 94,692
Amounts redeemed 94,692
Outstanding bonds and loans at December 31, 1998 $ 0
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 4.75% 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 5.18% 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,
1998, 1997, and 1996 were equal to the required contributions for each year, as
follows:
1998 1997 1996
PERF $446,033 379,677 359,241
PEPFF $515,730 490,765 480,694
(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 1998 was 6.2% and
was based on the first $68,400 paid. In 1998 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 1998 and 1997 was $760,133 and
$725,247 respectively.
(Continued)
Page 37
CITY OF EDINA, MINNESOTA
(7) Deferred Compensation Plan
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.
The City is trustee for two of the plans and accordingly, the plan assets (recorded at fair
value) and fund balance are recorded in an expendable trust fund.
(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, art center and Edinborough Park.
Segment information for the year ended December 31,1998 is as follows:
(Continued)
Other
Total
Golf
Enterprise
Enterprise
utility
Liquor
Course
Arena
Funds
Funds
Sales
$ 0
7,986,577
0
0
0
7,986,577
Operating Revenues
8,108,612
0
3,452,757
1,065,837
1,547,734
14,174,941
Depreciation
815,599
50,700
510,826
313,940
329,143
2,020,208
Operating income (loss)
883,504
782,034
767,158
(80,667)
(775,312)
1,576,718
Nonoperating revenues
(expenses), net
(27,822)
(14,735)
(320,689)
(118,041)
281,231
(200,056)
Operating transfers in
0
(458,000)
(40,000)
262,000
308,000
72,000
(out)
Net income
855,682
309,299
406,469
63,292
186,081
1,448,662
Property additions
1,036,118
75,584
317,504
297,390
770,987
2,497,583
Property deletions
9,060
25,090
134,541
58,717
34,374
261,782
Net working capital
3,030,677
920,899
(444,138)
(83,290)
19,834
3,443,982
Bonds payable
420,000
0
5,660,000
1,860,000
610,000
8,550,000
Total assets
26,442,955
2,541,895
7,741,347
5,306,215
4,019,986
46,052,398
Total retained earnings
(deficit)
25,509,446
2,109,269
1,061,654
(1,094,638)
276,058
27,861,789
(Continued)
Page 38
CITY OF EDINA, MINNESOTA
(9) Due From To Other Funds
Interfund receivables and payables as of December 31,1998 were as follows:
Fund
Interfund Interfund
Receivables Payables
General (including amount due from Edina Housing
and Redevelopment Authority of $913,066) $
3,882,766
221,821
Special Revenue:
Community Development Block Grant
0
7,349
Communications
0
157
Debt Service:
General Debt Service
322,469
0
Improvement Bond Redemption II
0
31,718
Capital Project:
Construction Fund
0
4,627,649
Housing and Redevelopment Authority of Edina
0
913,066
Revolving Fund
0
63,575
Enterprise:
Utilities
1,361,350
0
Liquor
474,193
0
Swimming Pool
65,426
0
Golf Course
0
200,000
Arena
0
50,000
Edinborough Park/Centennial Lake
22,609
0
Agency:
Police Seizure
0
13,478
$ 6,128,813 6,128,813
(10) Advance From To Other Funds
Advances to /advances from other funds as of December 31, 1998 were as follows.
Advances to Advances from
Fund other funds other funds
Enterprise:
Utilities 479,539 0
Liquor 473,890 0
Golf Course 0 473,890
Arena 0 479,539
$ 953,429 953,429
(Continued)
Page 39
CITY OF EDINA, MINNESOTA
(11) Reserved or Designated Fund Equity
The following fund equity balances as of December 31, 1998 have been reserved or
designated for the reasons noted below:
General Fund:
Reserved for equipment replacement
$1,003,974
Reserved for insurance claims
375,765
Unreserved -- designated for dedicated funds
6,812,960
Debt Service Funds:
152,790)
Reserved for debt service
721,406
Capital Projects:
(80,232)
Reserved for encumbrances
372,195
Reserved for special projects
78,342
Enterprise Funds:
Reserved for construction
750
Reserved for debt service
1,607,120
Trust and Agency Funds:
Reserved for deferred compensation
plan participants
3,095,848
Total fund equity reservations and designations
$14,068,360
(12) Fund Deficits
The following funds had deficit fund balances or retained earnings at December
31,1998:
Debt Service Funds:
Improvement Bond Redemption II
$ (16,347)
Capital Project Funds:
Construction Fund
(4,725,967)
Park Improvements Fund
152,790)
Enterprise Funds:
Swimming Pool Fund
(80,232)
Arena Fund
(1,094,638)
The debt service fund deficit will be covered in future periods by special assessment
collections. 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.
(Continued)
CITY OF EDINA, MINNESOTA
(13) Contingencies
Page 40
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.
(14) 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:
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, 1998:
Year ending December 31:
1999
$65,511
2000
Edinborough
Asset
Golf Course
Arena
Park
Machinery and equipment
$37,966
341,698
88,916
Less: Accumulated
362,091
Less: Amount representing interest
(52,091)
depreciation
(18,983)
(170,849)
(44,458)
Total
$18,983
170,849
44,458
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, 1998:
Year ending December 31:
1999
$65,511
2000
63,111
2001
65,483
2002
67,620
2003
64,395
2004
35,971
Total minimum lease payments
362,091
Less: Amount representing interest
(52,091)
Present value of net minimum lease payments $310,000
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)
Page 41
CITY OF EDINA, MINNESOTA
The asset acquired through this capital lease is as follows:
Asset General Fixed Assets
Building $630,749
(9,075)
Less: accumulated depreciation --
(180,906)
Total $630,749
Balance December 31, 1998 $
Year ending December 31:
323,373
1999
$83,761
2000
83,761
2001
83,761
2002
83,761
2003
83,761
Later years
251,279
Total minimum lease payments
670,084
Less: Amount representing interest
(129,222)
Present value of net minimum lease payments
$540,862
(15) 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 parry
since a current elected member of the City Council is employed as an officer of this
institution.
(16) Fund Equity -- Contributed Capital
The following is a summary of the changes in contributed capital:
Enterprise
Contributed capital:
Balance January 1, 1998
Add:
Contribution of fixed assets
Less:
Transfer of depreciation to
Art Edinborough Park
Utilities Center Pool Arena Centennial Lake
$ 0 9,519
22,126 322,929
1,749,152
18,725
3,578,158 759,782
264,250 293,588
contributed capital
(221)
(9,075)
(96,910)
(180,906)
(113,197)
Balance December 31, 1998 $
21,905
323,373
1,670,967
3,661,502
940,173
(Continued)
CITY OF EDINA, MINNESOTA
(17) Risk Management
Page 42
The City is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural
disasters.
Workers compensation, automobile, liability and pollution coverage are provided
through an insurance company. The City pays an annual premium for this coverage
and all claims are paid from the plan. If claims exceed the premium paid into the plan,
the City is liable for the deficiency, up to the annual maximum. The City is not subject to
a deductible for workers compensation, automobile, liability and pollution coverage, and
has an annual maximum of $372,509 in 1998.
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.
(Continued)
Page 43
CITY OF EDINA, MINNESOTA
(18) Conduit Debt Obligations
As of December 31, 1998, the City of Edina had outstanding 3 series of Housing
Revenue Bonds, with an aggregate principal amount payable of $51,550,000. The
bonds are payable solely from revenues of the respective organizations and do not
constitute an indebtedness of the City, and are not a charge against its general credit or
taxing power. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
(19) Excess of Expenditures Over Appropriations
For the year ending December 31, 1998, expenditures exceeded appropriations in the
following departments:
All unfavorable variances were funded by favorable expenditure variances from other
departments or excess revenues.
(Continued)
Budget
Actual
Variance
General Government:
Mayor & Council
66,056
66,386
(330)
Administration
727,649
919,231
(191,582)
Finance
427,063
428,083
(1,020)
Assessing
446,437
447,943
(1,506)
Public Safety:
Police Protection
4,850,576
4,872,937
(22,361)
Fire Protection
2,900,372
3,202,508
(302,136)
Public Works:
Administration
146,178
150,181
(4,003)
Engineering
557,916
564,929
(7,013)
Street Maintenance
1,662,430
2,053,655
(391,225)
Street Name Signs
68,500
82,016
(13,516)
Bridges
18,500
22,223
(3,723)
Retaining walls
18,000
20,584
(2,584)
Sidewalks & Ramps
118,000
150,835
(32,835)
Capital Outlay
456,729
584,561
(127,832)
Parks:
Recreation
140,748
143,199
(2,451)
Maintenance
486,584
490,220
(3,636)
Special Turf Care
208,020
210,472
(2,452)
Building Maintenance
284,896
308,852
(23,956)
Unallocated General:
Contingencies
75,000
93,766
(18,766)
Community Resource Ctr
28,500
35,057
(6,557)
Central Services:
Public Works Building
217,020
285,461
(68,441)
Equipment Operation
1,068,984
1,079,544
(10,560)
All unfavorable variances were funded by favorable expenditure variances from other
departments or excess revenues.
(Continued)
Page 44
CITY OF EDINA, MINNESOTA
(20) Change in Accounting Principle
As described in note 2, the City implemented GASB No. 31, Accounting and Financial
Reporting for Certain Investments and for External Investment Pools, during 1998. This
statement establishes accounting and financial reporting standards for certain
investments held by governmental entities. Prior to fiscal year 1998, investments were
reported at cost. The cumulative effect of applying this statement has been reported as
a restatement of fiscal year 1998 beginning year fund balance and is presented below.
It was immaterial to restate fiscal year 1997 comparative figures.
General
Revolving
HRA
Communications
Fund
Fund
Fund
Fund
Fund balance, as previously reported $ 9,944,292
6,624,465
14,164,014
882,504
Effect of change in accounting principle 143,453
19,058
82,719
27,835
Fund balance as restated $ 10,087,745
6,643,523
14,246,733
910,339
Page 45
CITY OF EDINA, MINNESOTA
Required Supplementary Information
Year 2000 Issue
(Unaudited - see accompanying auditor's report)
The year 2000 issue is the result of shortcomings in many electronic data
processing systems and other electronic equipment that may adversely affect the
government's operations as early as fiscal year 1999.
The City of Edina has nearly completed an inventory of computer systems and other
electronic equipment that may be affected by the year 2000 issue and that are
necessary to conducting City of Edina operations. It is unknown as of December 31,
1998, what effects, if any, failing to remediate any such systems will have upon City
operations. Major software packages (payroll, financial, utility billing and property
data) have been tested and found to be compliant.
In order to ensure all systems are addressed and contingency plans developed, the
City has formed a Year 2000 Committee representing each of the key areas. The
committee is identifying, addressing and resolving the potential problems, and is
making its best effort to ensure the uninterrupted provision of essential city services.
Because of the unprecedented nature of the Year 2000 issue, its effects and the
success of related remediation efforts will not be fully determinable until the year
2000 and thereafter. Management cannot assure the City is or will be Year 2000
ready, that the City's remediation efforts will be successful in whole or part, or that
parties with the City does business will be year 2000 ready.
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.
Page 47
CITY OF EDINA, MINNESOTA
General Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
Assets
1998
1997
Cash
$ 0
27,108
Petty cash and change funds
2,210
1,690
Investments
7,527,080
5,271,540
Accounts Receivable
380,141
202,330
Accrued interest receivable
5,600
41
Taxes Receivable:
Delinquent
54,226
39,107
Allowance for uncollectible taxes
(54,226)
(39,107)
Due from other funds
3,882,766
5,361,025
Due from other governments
277,184
220,954
Prepaid expenses
35,889
21,080
Total assets
$ 12,110,870
11,105,768
Liabilities and Fund Balance
Liabilities:
Accounts payable
386,591
325,729
Salaries payable
313,642
259,477
Due to other funds
221,821
221,821
Due to other governments
256,396
354,449
Compensated absences payable
12,011
0
Total liabilities
1,190,461
1,161,476
Fund balance:
Reserved
Unreserved:
Designated
Undesignated
Total fund balance
1,379,739
6,812,960
2,727,710
10,920,409
1,642,733
5,708,632
2,592,927
9,944,292
Total liabilities and fund balance 12,110,870 11,105,768
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, 1998
(with comparative actual amounts for year ended December 31, 1997)
1998
1997
Variance
Favorable
Budget
Actual
(unfavorable)
Actual
Revenues:
Taxes $
12,854,140
13,053,978
199,838
12,105,724
Licenses and permits
1,067,000
2,091,365
1,024,365
1,388,968
Intergovernmental
1,503,315
2,035,566
532,251
1,643,648
Charges for service
1,507,080
1,612,038
104,958
1,576,224
Fines and forfeitures
430,000
691,355
261,355
562,910
Sale and rental of property
50,000
83,774
33,774
149,047
Other revenues
102,228
162,286
60,058
75,998
Total revenues
17,513,763
19,730,362
2,216,599
17,502,519
Expenditures:
Current:
General government
2,438,782
2,528,560
89,778
2,247,040
Public safety
8,222,748
8,131,293
(91,455)
7,717,334
Public works
3,671,952
4,084,651
412,699
3,537,441
Parks
2,099,728
1,960,111
(139,617)
2,031,261
Unallocated general
349,056
333,793
(15,263)
340,510
Other
0
30,019
30,019
117,167
Capital outlay:
General government
27,091
28,377
1,286
51,638
Public safety
479,638
837,573
357,935
334,523
Public works
513,258
626,455
113,197
431,291
Parks
111,510
69,084
(42,426)
104,058
Total expenditures
17,913,763
18,629,916
716,154
16,912,263
Excess (deficiency) of
revenues over expenditures
(400,000)
1,100,446
1,500,445
590,256
Other financing sources (uses):
Operating transfers in (out)
Liquor fund
400,000
0
(400,000)
0
Swimming Pool Fund
0
150,000
150,000
0
Capital Project funds
0
(322,918)
(322,918)
(333,000)
Edinborough Park/Centennial Lake
0
(222,000)
(222,000)
(1,600,000)
Park Referendum
0
(260,000)
(260,000)
0
HRA
0
0
0
254,858
Parkland dedication
0
387,136
387,136
331,466
Total other financing sources
400,000
(267,782)
(667,782)
(1,346,676)
Excess of revenues and other
financing sources over
expenditures and other financing uses $
0
832,664
832,663
(756,420)
Fund balance - January 1 as restated
10,087,745
10,700,712
Fund Balance - December 31
$ 10,920,409
$
9,944,292
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Revenues - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Taxes:
General property tax
Penalties and interest
Total taxes
Licenses and permits
Intergovernmental:
Federal aid
State grants:
Homestead credit
State highway aid
Other
Police aid
County grants:
Health programs
Total intergovernmental
Charges for service:
Engineering
Assessing searches
Planning fees
False alarms
Police services
Hazmat fee
Housing and Redevelopment Authority
Charges to other funds
Ambulance service
Registration fee
Laboratory fees
Maint Assmt - 50th & France
Housing Foundation Contract
Total charges for service
Fines and forfeitures
Sale and rental of property
Other Revenues:
Interest income
Donations
Other
Total other revenues
Total revenues
Page 49
1998 1997
Variance
Favorable
Budget Actual (unfavorable) Actual
$ 12,849,140
13,052,867
203,727
12,136,817
5,000
1,111
(3,889)
(31,093)
12,854,140
13,053,978
199,838
12,105,724
1,067,000
2,091,365
1,024,365
1,388,968
8,000
528,903
520,903
17,000
872,635
956,594
83,959
956,224
140,000
140,000
0
140,000
49,680
40,779
(8,901)
81,136
320,000
246,954
(73,046)
311,044
113,000
122,336
9,336
138,244
1,503,315
2,035,566
532,251
1,643,648
120,000
43,544
(76,456)
78,461
0
2,004o
2,004
430
13,000
20,196
7,196
18,593
53,000
53,593
593
58,822
75,000
69,512
(5,488)
75,227
1,000
3,086
2,086
1,000
180,000
180,000
0
180,000
145,080
145,080
0
146,700
790,000
953,692
163,692
900,309
88,000
97,712
9,712
87,764
12,000
9,174
(2,826)
10,246
10,000
10,000
0
10,000
20,000
24,445
4,445
8,671
1,507,080
1,612,038
104,958
1,576,224
430,000
691,355
261,355
562,910
50,000
83,774
33,774
149,047
15,000
148,161
133,161
30,812
500
0
(500)
0
86,728
14,125
(72,603)
45,186
102,228
162,286
60,058
75,998
$ 17,513,763
19,730,362
2,216,599
17,502,519
Page 50
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Administration:
Personal services
482,296
1998
(199,050)
1997
Contractual services
94,400
89,094
Variance
86,485
Commodities
1,300
998
Favorable
3,295
Central services
Budget
Actual
(unfavorable)
Actual
General government:
9,565
8,665
900
31,250
Mayor and council:
727,649
919,231
(191,582)
751,711
Personal services
$ 27,500
27,360
140
27,498
Contractual services
3,800
3,812
(12)
2,874
Commodities
1,000
1,458
(458)
1,978
Central services
33,756
33,756
0
32,963
Total mayor and council
66,056
66,386
(330)
65,313
Administration:
Personal services
482,296
681,346
(199,050)
494,061
Contractual services
94,400
89,094
5,306
86,485
Commodities
1,300
998
302
3,295
Central services
140,088
139,128
960
136,620
Capital outlay
9,565
8,665
900
31,250
Total administration
727,649
919,231
(191,582)
751,711
Planning:
Personal services
202,286
209,954
(7,668)
191,109
Contractual services
25,090
16,799
8,291
3,729
Commodities
815
340
475
466
Central services
60,996
60,540
456
59,640
Capital outlay
5,100
1,948
3,152
5,404
Total planning
294,287
289,581
4,706
260,348
Finance:
Personal services
280,575
276,882
3,693
270,517
Contractual services
62,500
72,734
(10,234)
67,460
Commodities
600
768
(168)
944
Central services
76,572
75,924
648
74,496
Capital outlay
6,816
1,775
5,041
4,175
Total finance
427,063
428,083
(1,020)
417,592
Election:
Personal services
99,500
50,674
48,826
15,495
Contractual services
11,330
5,513
5,817
6,223
Commodities
6,695
5,153
1,542
139
Central services
11,856
11,796
60
11,496
Total election
129,381
73,136
56,245
33,353
(Continued)
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Assessing
Personal services
Contractual services
Commodities
Central services
Capital outlay
Total assessing
Legal and court services:
Contractual services
Total general government
Public Safety:
Police protection:
Personal services
Contractual services
Commodities
Central services
Capital outlay
Total police protection
Fire protection:
Page 51
1998 1997
Variance
Favorable
Budget Actual (unfavorable) Actual
$ 308,978
306,441
2,537
304,239
39,200
33,712
5,488
56,363
1,125
673
452
1,467
91,524
91,128
396
89,316
5,610
15,989
(10,379)
10,809
446,437
447,943
(1,506)
462,194
53,121
Total fire protection
375,000
332,577
42,423
308,167
2,465,873
2,556,937
(91,064)
2,298,678
3,257,927
3,213,263
44,664
3,003,296
186,199
217,444
(31,245)
186,528
43,056
46,831
(3,775)
51,558
1,109,460
1,101,312
8,148
1,083,605
253,934
294,087
(40,153)
260,516
4,850,576
4,872,937
(22,361)
4,585,503
Personal services
2,003,634
1,939,585
64,049
1,915,157
Contractual services
114,243
116,833
(2,590)
90,586
Commodities
50,619
78,492
(27,873)
71,983
Central services
540,276
536,676
3,600
530,676
Capital outlay
191,600
530,922
(339,322)
53,121
Total fire protection
2,900,372
3,202,508
(302,136)
2,661,523
Civil defense:
Personal services
22,119
22,531
(412)
21,761
Contractual services
7,887
4,672
3,215
4,338
Commodities
1,174
51
1,123
990
Capital outlay
6,984
0
6,984
15,806
Total civil defense
38,164
27,254
10,910
42,895
(Continued)
Page 52
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Public Health:
Personal services
193,503
1998
21,944
1997
Contractual services
160,071
183,933
Variance
162,006
Commodities
3,991
728
Favorable
1,955
Central services
Budget
Actual
(unfavorable)
Actual
Animal control:
7,434
0
7,434
4,871
Personal services
$ 36,723
30,650
6,073
25,692
Contractual services
6,926
6,210
716
12,010
Commodities
3,360
927
2,433
989
Central services
13,800
13,680
120
13,356
Capital outlay
6,096
0
6,096
0
Total animal control
66,905
51,467
15,438
52,047
Public Health:
Personal services
193,503
171,559
21,944
126,162
Contractual services
160,071
183,933
(23,862)
162,006
Commodities
3,991
728
3,263
1,955
Central services
63,372
62,945
427
61,164
Capital outlay
7,434
0
7,434
4,871
Total public health
428,371
419,165
9,206
356,158
Inspections:
Personal services
289,896
276,652
13,244
259,268
Contractual services
23,303
14,936
8,367
6,106
Commodities
4,509
5,283
(774)
3,692
Central services
86,700
86,100
600
84,456
Capital outlay
13,590
12,564
1,026
209
Total inspections
417,998
395,535
22,463
353,731
Total public safety
8,702,386
8,968,866
(266,480)
8,051,857
Public Works:
Administration:
Personal services
108,682
113,557
(4,875)
110,435
Contractual services
4,700
4,008
692
3,629
Central services
32,796
32,616
180
32,508
Total administration
146,178
150,181
(4,003)
146,572
Engineering:
Personal services
351,691
359,072
(7,381)
298,674
Contractual services
21,100
39,801
(18,701)
21,255
Commodities
13,300
9,766
3,534
11,117
Central services
115,296
114,396
900
112,020
Capital outlay
56,529
41,894
14,635
47,934
Total engineering
557,916
564,929
(7,013)
491,000
(Continued)
Page 53
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Street Maintenance:
Personal services
723,000
1998
(106,398)
1997
Contractual services
62,350
74,339
Variance
93,630
Commodities
388,500
661,338
Favorable
280,992
Central services
Budget
Actual
(unfavorable)
Actual
Supervision and overhead:
1,662,430
2,053,655
(391,225)
1,535,396
Personal services
$ 126,101
120,218
5,883
120,890
Contractual services
31,200
34,850
(3,650)
29,578
Commodities
1,000
88
912
1,295
Central services
406,656
402,336
4,320
401,076
Total supervision and overhead
564,957
557,492
7,466
552,839
Street Maintenance:
Personal services
723,000
829,398
(106,398)
687,194
Contractual services
62,350
74,339
(11,989)
93,630
Commodities
388,500
661,338
(272,838)
280,992
Central services
488,580
488,580
0
473,580
Total street maintenance
1,662,430
2,053,655
(391,225)
1,535,396
Street lighting:
Personal services
32,000
21,835
10,165
17,894
Contractual services
381,500
369,796
11,704
489,980
Commodities
16,500
21,054
(4,554)
3,264
Total street lighting
430,000
412,685
17,315
511,138
Street name signs:
Personal services
35,000
42,312
(7,312)
28,965
Contractual services
500
0
500
373
Commodities
33,000
39,704
(6,704)
35,879
Total street name signs
68,500
82,016
(13,516)
65,217
Traffic control:
Personal services
40,000
18,732
21,268
29,364
Contractual services
83,500
74,350
9,150
61,062
Commodities
20,500
18,863
1,637
18,039
Total traffic control
144,000
111,945
32,055
108,465
Bridges:
Personal services
12,000
15,043
(3,043)
7,178
Contractual services
2,500
0
2,500
0
Commodities
4,000
7,180
(3,180)
2,186
Total bridges
18,500
22,223
(3,723)
9,364
(Continued)
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Retaining walls:
Personal services
Contractual services
Commodities
Total retaining walls
Sidewalks and ramps:
Personal services
Contractual services
Commodities
Total sidewalks and ramps
Other expenditures:
Capital outlay
Total public works
Parks:
Administration:
Personal services
Contractual services
Commodities
Central services
Capital outlay
Total administration
Recreation:
Athletic activities
Skating and hockey
Tennis instruction
Playground
Senior citizens
Miscellaneous and special activities
Total recreation
1998
Page 54
1997
Variance
Favorable
Budget Actual (unfavorable) Actual
$ 7,000
0
7,000
97
6,000
9,496
(3,496)
10,934
5,000
11,088
(6,088)
0
18,000
20,584
(2,584)
11,031
39,500
36,998
2,502
56,732
54,500
66,731
(12,231)
48,221
24,000
47,106
(23,106)
49,400
118,000
150,835
(32,835)
154,353
456,729
584,561
(127,832)
383,357
4,185,210
4,711,106
(525,896)
3,968,732
369,478
341,591
27,887
329,472
20,349
24,432
(4,083)
25,991
18,207
12,499
5,708
15,235
110,868
110,028
840
107,712
4,200
0
4,200
1,877
523,102
488,550
34,551
480,287
9,252
11,024
(1,772)
9,517
40,880
32,549
8,331
48,979
11,678
18,693
(7,015)
12,818
27,304
20,633
6,671
24,308
21,058
24,565
(3,507)
29,200
30,576
35,735
(5,159)
28,730
140,748
143,199
(2,451)
153,552
(Continued)
Page 55
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
Forestry:
Personal services
92,000
1998
15,290
1997
Contractual services
39,678
25,294
Variance
18,092
Commodities
18,768
13,664
Favorable
9,058
Total planting and trees
Budget
Actual
(unfavorable)
Actual
Maintenance:
Supervision and overhead:
13,000
10,528
2,472
17,721
Personal services
$ 82,244
91,670
(9,426)
81,123
Contractual services
6,528
2,465
4,063
3,803
Commodities
0
193
(193)
109
Central services
397,812
395,892
1,920
385,704
Total supervision and overhead
486,584
490,220
(3,636)
470,739
Mowing:
123,600
130,045
(6,445)
119,741
Personal services
89,000
64,460
24,540
79,925
Contractual services
0
0
0
1,038
Commodities
1,428
1,377
51
2,890
Total mowing
90,428
65,837
24,591
83,853
Special turf care:
Personal services
156,000
166,600
(10,600)
193,323
Contractual services
17,034
4,861
12,173
6,502
Commodities
34,986
39,011
(4,025)
28,547
Total special turf care
208,020
210,472
(2,452)
228,372
Forestry:
Personal services
92,000
76,710
15,290
103,780
Contractual services
39,678
25,294
14,384
18,092
Commodities
18,768
13,664
5,104
9,058
Total planting and trees
150,446
115,668
34,778
130,930
Litter removal:
Personal services
13,000
10,528
2,472
17,721
Contractual services
6,426
2,807
3,619
4,196
Commodities
7,344
1,427
5,917
8,098
Total litter removal
26,770
14,762
12,008
30,015
Building maintenance:
Personal services
106,096
123,549
(17,453)
114,223
Contractual services
123,600
130,045
(6,445)
119,741
Commodities
55,200
55,258
(58)
42,344
Total building maintenance
284,896
308,852
(23,956)
276,308
(Continued)
Page 56
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
1998
1997
Variance
Favorable
Budget
Actual
(unfavorable)
Actual
Paths and hard surfaces:
Personal services $
13,000
15,847
(2,847)
9,029
Contractual services
51,000
11,863
39,137
53,385
Commodities
9,180
5,803
3,377
1,834
Total paths and hard surfaces
73,180
33,513
39,667
64,248
Skating rinks:
Personal services
116,000
83,741
32,259
110,786
Contractual services
0
863
(863)
0
Commodities
3,754
4,434
(680)
4,048
Total skating rinks
119,754
89,038
30,716
114,834
Total maintenance
1,440,078
1,328,362
111,716
1,399,299
Capital outlay
107,310
69,084
38,226
102,181
Total parks
2,211,238
2,029,195
182,043
2,135,319
Unallocated general expenditures:
Human Rights Commission
78,456
77,358
1,098
65,218
South Hennepin Human Services
20,000
9,815
10,185
63,601
City's share of special assessment
26,000
16,449
9,551
15,890
Fireworks
10,600
10,600
0
7,600
Contingencies
75,000
93,766
(18,766)
93,866
Community Resource Center
28,500
35,057
(6,557)
0
Records Retention
15,000
0
15,000
0
Deer control
7,500
2,907
4,593
6,654
Suburban Rate Authority
4,000
4,000
0
4,000
Fire Station debt service
84,000
83,841
159
83,681
Total unallocated general expenditures
349,056
333,793
15,263
340,510
Central services
0
30,019
(30,019)
117,167
Total expenditures $
17,913,763
18,629,916
(716,153)
16,912,263
Page 57
CITY OF EDINA, MINNESOTA
General Fund
Schedule of Central Services Expenditures - Budget and Actual
Year ended December 31, 1998
(with comparative actual amounts for year ended December 31, 1997)
City Hall:
Personal services
65,694
1998
7,455
1997
Contractual services
41,820
42,515
variance
39,079
Commodities
33,558
20,920
Favorable
25,836
Fixed charges
Budget
Actual
(unfavorable)
Actual
General:
156,312
136,914
19,398
138,547
Personal services
$ 2,776,780
2,784,130
(7,350)
2,588,698
Contractual services
812,000
714,840
97,160
881,207
Commodities
26,000
33,544
(7,544)
44,702
Capital outlay
107,008
105,642
1,366
172,487
Total general
3,721,788
3,638,156
83,633
3,687,094
City Hall:
Personal services
65,694
58,239
7,455
58,632
Contractual services
41,820
42,515
(695)
39,079
Commodities
33,558
20,920
12,638
25,836
Fixed charges
15,240
15,240
0
15,000
Total City Hall
156,312
136,914
19,398
138,547
Public Works building:
Personal services
62,744
46,062
16,682
59,524
Contractual services
80,000
79,678
322
101,618
Commodities
58,000
46,966
11,034
51,779
Fixed charges
9,504
9,504
0
9,384
Capital outlay
6,772
103,251
(96,479)
1,988
Total Public Works building
217,020
285,461
(68,441)
224,293
Equipment operation:
Personal services
274,644
275,582
(938)
252,739
Contractual services
83,500
76,293
7,207
73,790
Commodities
453,000
456,940
(3,940)
486,741
Fixed charges
230,952
230,952
0
220,776
Capital outlay
26,888
39,777
(12,889)
21,335
Total equipment operation
1,068,984
1,079,544
(10,560)
1,055,381
Total central services expenditures
5,164,104
5,140,075
24,030
5,105,315
Less allocation to other activities
5,164,104
5,110,056
54,048
4,988,148
Net central services
0
30,019
(30,019)
117,167
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.
Page 59
CITY OF EDINA, MINNESOTA
Special Revenue Funds
Combining Balance Sheet
December 31, 1998
(with comparative totals for December 31, 1997)
Community
Development Totals
Block Grant Communications 1998 1997
Assets
Investments $
0
953,417
953,417
881,453
Accounts receivable
0
72
72
45
Accrued interest receivable
0
9,470
9,470
7,310
Due from other funds
0
0
0
26,376
Due from other governments
10,038
0
10,038
28,171
Total assets $
10,038
962,959
972,997
943,355
Liabilities and Fund Balance
Liabilities:
Accounts payable
Salaries Payable
Due to other funds
Due to other governments
Compensated absences
Total liabilities
Fund balance:
Unreserved - undesignated
Total liabilities and fund balance $
0
14,723
14,723
52,826
0
0
0
1,229
7,349
157
7,506
5,885
2,689
0
2,689
0
0
0
0
911
10,038
14,880
24,918
60,851
0
948,079
948,079
882,504
10,038
962,959
972,997
943,355
CITY OF EDINA, MINNESOTA
Special Revenue Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Year ended December 31, 1998
(with comparative totals for year ended December 31, 1997)
Revenues:
Franchise fees
intergovernmental:
Federal grants
Investment income
Total revenues
Expenditures:
Current:
Other:
Personal services
Contractual services
Commodities
Fixed charges
Capital outlay
Total expenditures
Excess of revenues over
expenditures
Fund balance -- January 1 as restated
Fund balance -- December 31
Community
Development
Block Grant
$ 0
Totals
Communications 1998
296,427 296,427
Page 60
1997
331,527
96,368 0 96,368 182,507
0 78,996 78,996 49,067
96,368 375,423 471,791 563,101
2,502
54,580
57,082
69,899
93,866
235,943
329,809
351,177
0
13,505
13,505
11,352
0
30,780
30,780
22,524
0
2,875
2,875
7,638
96,368
337,683
434,051
462,590
0
37,740
37,740
100,511
0
910,339
910,339
781,993
$ 0
948,079
948,079
882,504
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.
Assets
Cash & investments with fiscal agents
Accounts receivable
Special assessments receivable:
Delinquent
Current
Deferred
Bloomington
Taxes Receivable:
Delinquent
Allowance for uncollectible taxes
Due from other funds
Due from other governments
Total assets
Liabilities and Fund Balance
Liabilities
Other Payables
Due to other funds
Deferred revenue
Total liabilities
Fund balance:
Reserved for debt service
Total fund balance
Total liabilities and fund balance
Page 62
CITY OF EDINA, MINNESOTA
Debt Service Funds
Combining Balance Sheet
December 31, 1998
(with comparative totals for December 31, 1997)
General
Improvement
120,753
132,819
Debt
Bond
Totals
0
Service
Redemption II
1998
1997
$ 409,666
0
409,666
17,729,522
0
13,970
13,970
31,427
0
0
0
1,557
0
21,520
21,520
13,999
0
2,406,306
2,406,306
2,532,910
0
120,666
120,666
132,733
8,623
0
8,623
5,907
(8,623)
0
(8,623)
(5,907)
322,469
0
322,469
1,698,455
5,618
1,492
7,110
3,835
$ 737,753
2,563,954
3,301,707
22,144,438
0
120,753
120,753
132,819
0
31,718
31,718
0
0
2,427,830
2,427,830
2,546,912
0
2,580,301
2,580,301
2,679,731
737,753
(16,347)
721,406
19,464,707
737,753
(16,347)
721,406
19,464,707
$ 737,753
2,563,954
3,301,707
22,144,438
CITY OF EDINA, MINNESOTA
Debt Service Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Year ended December 31, 1998
(with comparative totals for year ended December 31, 1997)
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 (out):
HRA
Construction fund
Proceeds of refunding bonds
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 II
1998
1997
$ 729,681
0
729,681
666,072
0
699,354
699,354
840,238
43,331
0
43,331
1,038,850
773,012
699,354
1,472,366
2,545,160
0
1,500
1,500
2,281
2,039,724
185,000
2,224,724
2,120,000
4,068,801
31,008
4,099,809
4,502,948
6,108,525
217,508
6,326,033
6,625,229
(5,335,513)
481,846
(4,853,667)
(4,080,069)
5,166,948
0
5,166,948
4,856,852
0
(1,796,306)
(1,796,306)
0
0
0
0
5,000,000
(17,260,276)
0
(17,260,276)
(8,080,000)
(12,093,328)
(1,796,306)
(13,889,634)
1,776,852
(17,428,841)
(1,314,460)
(18,743,301)
(2,303,217)
18,166,594
1,298,113
19,464,707
21,767,924
$ 737,753
(16,347)
721,406
19,464,707
0
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.
Page 64
Assets
Cash
Investments
Accounts receivable
Accrued interest receivable
Special assessments receivable:
Delinquent
Deferred
Taxes receivable
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
Taxes payable
Deferred revenue
Total liabilities
Fund balance(deficit):
Reserved for encumbrances
Reserved for special projects
Unreserved - undesignated
Total fund balance (deficit)
Total liabilities and fund balance
Page 65
CITY OF EDINA, MINNESOTA
16,360
Capital Project Funds
125,094
10,505
235,224
258,888
0
Combining Balance Sheet
0
237
237
998
63,469
December 31, 1998
49,776
0
169,666
224,109
(with comparative totals for December 31, 1997)
913,066
0
63,575
5,604,290
Housing and
18,489
0
0
0
18,489
Redevelopment
0
0
0
0
0
Authority of
Park
0
Totals
Construction
Edina Improvements
Revolving
1998
1997
$ 0
52,124
3,080
0
55,204
18,279
0
15,094,869
0
7,010,988
22,105,857
25,796,426
0
0
19,000
16,374
35,374
20,716
0
111,318
0
42,592
153,910
137,616
0
0
0
2,441
2,441
2,397
0
0
0
117,827
117,827
98,439
0
224,533
0
0
224,533
46,149
0
0
0
209
209
326
$ 0
15,482,844
22,080
7,190,431
22,695,355
26,120,348
16,360
83,265
125,094
10,505
235,224
258,888
0
0
0
237
237
998
63,469
56,421
49,776
0
169,666
224,109
4,627,649
913,066
0
63,575
5,604,290
7,494,686
18,489
0
0
0
18,489
36
0
0
0
0
0
1,488,691
0
0
0
120,267
120,267
100,836
4,725,967
1,052,752
174,870
194,584
6,148,173
9,568,244
159,204
0
212,991
0
372,195
103,019
0
0
0
78,342
78,342
78,342
(4,885,171)
14,430,092
(365,781)
6,917,505
16,096,645
16,370,743
(4,725,967)
14,430,092
(152,790)
6,995,847
16,547,182
16,552,104
$ 0
15,482,844
22,080
7,190,431
22,695,355
26,120,348
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
Investment Income
Rental of property
Donations
Other revenues
Total revenues
Expenditures:
Current:
Other.
Personal services
Professional fees
Other
Construction costs
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other financing sources (uses):
Operating transfers in (out):
General fund
Working capital fund
General debt service fund
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 as restated
Fund balance (deficit) - December 31
Year ended December 31, 1998
(with comparative totals for year ended December 31, 1997)
Housing and
Redevelopment
Authority of
Park
Totals
Construction
Edina
Improvements
Revolving
1998
1997
$ 0
6,784,208
0
0
6,784,208
4,881,825
0
0
0
144,716
144,716
114,968
169,518
0
250,000
0
419,518
170,589
221,110
0
0
0
221,110
1,266,699
0
809,552
59,039
257,773
1,126,364
1,119,372
0
0
0
2,865
2,865
3,351
0
0
0
127,313
127,313
4,025
0
223,730
100,000
138,931
462,661
145,468
390,628
7,817,490
409,039
671,598
9,288,755
7,706,297
0
180,000
11,199
103,756
294,955
471,262
0
48,291
27,554
155,975
231,820
461,984
0
21,304
53,262
40,702
115,268
90,101
2,002,943
2,217,588
1,419,322
325,834
5,965,687
15,867,676
2,002,943
2,467,183
1,511,337
626,267
6,607,730
16,891,023
(1,612,315)
5,350,307
(1,102,298)
45,331
2,681,025
(9,184,726)
0
0
260,000
322,918
582,918
78,142
0
0
15,925
(15,925)
0
0
1,796,306
(5,166,948)
0
0
(3,370,642)
(4,856,852)
0
0
0
0
0
7,573,354
1,796,306
(5,166,948)
275,925
306,993
(2,787,724)
2,794,644
183,991
183,359
(826,373)
352,324
(106,699)
(6,390,082)
(4,909,958)
14,246,733
673,583
6,643,523
16,653,881
22,942,186
$ (4,725,967)
14,430,092
(152,790)
6,995,847
16,547,182
16,552,104
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
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, 1998
(with comparative totals for December 31, 1997)
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. IiabiIities
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 - undesignated
Total retained earnings (deficit)
Total liabilities and fund equity
Page 68
Swimming
Utilities
Liquor
Pool
$ 0
4,340
0
0
0
0
0
0
0
0
611
0
2,083,336
0
0
. 01
0
0
46,392
0
0
0
0
0
1,361,350
474,193
65,426
658
0
0
30,545
874,381
0
3,522,281
1,353,525
65,426
479,539
473,890
0
22,441,006,
714,480
2,148,288
129
0
4,978
$ 26,442,955
2,541,895
2,218,692
157,100
307,092
287
17,455
19,013
0
18,193
0
0
8,541
0
17,614
0
0
0
256,969
93,826
56
33,346
12,695
.0
491,604
432,626
:17,957
0
0
0
0
0
0
0
0
0
0
0
0
420,000
0
610,000
420,000
0
610,000
911,604
432,626
627,957
21,905
0
1,670,967
274,998.
0
32,500
0
0
0
25,234,448
2,109,269
(112,732)
25,509,446
2,109,269
(80,232)
$ 26,442,955
2,541,895
2,218,692
Page 69
Golf
Art
Edinborough Park
Totals
Course
Arena
Center
Centennial Lake
1998
1997
4,400
7.00
781
1,500
11,721
10,765
0
0
0
0
0
10,266
94
848
0
235
1,177
3,994,612
6,970
83,234
0
2,750
93,565
168,658
0
0
0
0
2,083,336.
2,117,545
0
0
0
48,674
48,674
53,610
0
0
0
0
46,392
22,153
0
0
0
0
0
236
0
0
0
22,609
1,923,578
900,014
0
0
0
0
658
0
62,049
0
15,274
0
982,249
913,363
73,513
84,782
16,055
75,768
5,191,350
8,191,222
0
0
0
•0
953,429
1,596,747
7,625,200
5,209,928
572,382
1,137,089
39,848,373
39,414,920
42,634
11,505
0
0
59,246
65,831
7,741,347
5,306,215
588,437
1,212,857
46,052,398
49,268,720
87,545
37,707
41,035
23,649
654,415
722,691
23,602
5,485
4,107
16,720
86,382
76,726
0.
0
0
0
18,193
24,145
161,127
51,307
0
0
238,589
394,506
200,000
50,000
0
0
250,000
250,000
6,710
6,763
864,•
1,648
366,836
402,957
38,667
16,810
6,923
24,512
132;953
130,308
517,651
168,072
52,929
66,529
1,747,368
2,001,333
3,352
3,500
0
0
6,852
6,170
0
5,040,
0
0
5,040
5,040
473,890
479,539
0
0
953,429
1,596,747
24,800
223,200
0
62,000
310,000
360,000
5,660,000
1,860,000
0
0
8,550,000
13,190,000
6,162,042
2,571,279
0
62,000
9,825,321
15,157,957-
6,679,693
2,739,351
52,929
128,529
11,572,689
17,159,290.
0
3,661;502
323;373
940,173
6,617,920
6,096,611.
1,115,031
184,591
.0
0
1,607,120
1,607,120
0
0
750
0
750
750
(53,377)
(1,279,229)
211,385
144,155
26,253,919
24,404,949
1,061,654
(1,094,638)
212,135
144,155
27,861,789
26,012,819
7,741,347
5,306,215
588,437
1,212,857
46,052,398
49,268,720
Page 70
CITY OF EDINA, MINNESOTA
Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit)
December 31, 1998
(with comparative totals for December 31, 1997)
Swimming
'
Utilities
Liquor
Pool
Sales and cost of sales:
Sales
$ 0
7,986,577
0
Cost of sales
0
6,039,893
0
Gross profit
0
1,946,684
0
Operating revenues:
Charges for services
8,108,612
0
523,800
Total'gross profit and operating revenues
8,108,612
1,946,684
523,800
Operating expenses:
Disposal charges
3,185,784
0
0
Personal services
695,363
685,927
158,847
Contractual services
1,652,817
163,949
72,122
Commodities
418,933
34,094
20,811
Central services
'456,612
229,980
15,984
Depreciation
815,599
50,700
150,881
Total operating expenses
7,225,108
1,164,650
418,645 .
Operating income (loss)
883,504
782,034
105,155
Nonoperating revenues (expenses):
Investment income
0
0
0
Donations
0
0
0
Miscellaneous revenue (expense)
0
(903)
0
Interest from fiscal agent
0
0
0
Interest and fiscal charges
(22,184)
0
(35,416)
' Interest on capital lease
0
0
0
Gain (loss) on sale of fixed assets
(4,098)
(13,832)
0
Amortization of bond discount
,(1,540)
0
(356)
Total nonoperating revenues (expenses)
(27,822)
(14,735)
(35,772)
Income (loss) before operating transfers
855,682.
767,299
69,383
Operating transfers in (out):
General fund'
0
0
(150,000)
Art center fund
0
(236,000)
0
Liquor store fund
0
0
0
Golf Course fund
0
0-
.0
Arena fund
0
(222,000)
0
Gun Range
0
0
0
•Edinborough Park/Centennial Lake
0
0'
0
Total operating transfers, net
0
(458,000)
(150,000)
Net income (loss)
855,682
309,299
(80,617)
Add depreciation on contributed assets
221
0
96,910
Increase (decrease) in retained earnings
855,903
309,299
16,293
Retained earnings (deficit) - January 1
24,653,543
1,799;970
(96,525)
Residual equity transfer out
0
0
0
Retained earnings (deficit) - December 31
$ 25,509,446
2,109,269
(80,232)
Page 71
Golf
Art
Edinborough Park
Totals
Course
Arena
Center
Centennial Lake
1998
1997
0
0
0
0
7,986,577
7,426,218
0
0-
0
0
6,039,893
5,607,325
0
0
0
0
1,946,684
1,818,893
3,452,757
1,065,837
271,163
752,771
14,174,940
13,275,588
3,452,757
1,065,837
271,163
752,771
16,121,624
15,094,481
0
0
0
0
3,185,784
3,715,800
1,213,053
337,846
278,214
616,154
3,985,404
3,955,454
440,891
359,122
78,139
292,483
3,059,523
2,610,358
295,985
63,200
84,594
164,215
1,081,832
986,910
224,844
72,396
37,884
174,456
1,212,156
1,069,164
510,826
313,940
37,317
140,945
2,020,208
1,779,721
2,685,599
1,146,504
516,148
1,388,253
14,544,907
14,117,407
767,158
(80,667)
(244,985)
(635,482)
1,576,717
977,074
0
0
1,205
301,325
302,530
374,217
0
0
13,692
0
13,692
34,102
0
0
9,779
0
8,876
6,556
0
0
0
0
0
182,924
(324,150)
(103,876)
0
0
(485,626)
(803,155)
(1,425)
(12,824)
0
(3,562)
(17,811)
(19,761)
8,424
(190)
0
(5,436)
(15,132)
(154,067)
(3,538)
(1,151)
0
0
(6,585)
(14,956)
(320,689)
(118,041)
24,676
292,327
(200,056)
(394,140)
446,469
(198,708)
(220,309)
(343,155)
1,376,661
582,934
0
0
0
222,000
72,000
1,600,000
0
0
236,000
0
0
(67,000)
0
222,000
0
0
222,000
214,408
0
40,000
0
0
40,000
0
(40,000)
0
0
0
(262,000)
(100,000)
0
0
0
0
0
(22,408)
0
0
0
0
0
(25,000)
(40,000)
262,000
236,000
222,000
72,000
1,600,000
406,469
63,292
15,691
(121,155)
1,448,661
2,182,934
0
180,905
9,075
113,198
400,309
214,074
406,469
244,197
24,766
(7,957)
1,848,970
2,397,008
655,185
(1,338,835)
187,369
152,112
26,012,819
23,628,830
0
0
0
0
0
(13,019)
1,061,654
(1,094,638)
212,135
144,155
27,861,789
26,012,819
Cash flows from capital financing activities
Net acquisition of capital assets
Gain (loss) on sale of fixed assets
Principal paid on revenue bonds
Principal paid on capital lease
Interest earned from fiscal agent
Interest paid on capital lease
Interest paid on bonds
Net cash (used) provided for capital financing activities
Cash flows from investing activities
Decrease in interest receivable
Proceeds from sale of investments
Investment income
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and equivalents, beginning of year
Cash and equivalents, end of year
Supplemental disclosure of noncash noncapital financing activity:
Donation of investments
Contribution of fixed assets
Total noncash noncapital financing activity
(1,007,928)
(61.751)
(31,181)
(303,214)
Page 72
CITY OF EDINA, MINNESOTA
0
8,424
(400,000)
0
Enterprise Funds
(2.437,525)
0
0
0
Combining Statement of Cash Flows
0
0
0
0
December 31, 1998
0
0
(1,425)
(22,184)
(with comparative totals for year ended December 31, 1997)
(35,416)
(324,150)
(1,434,210)
(75,583)
(89,347)
(3,061,890)
Swimming
Golf
Cash Flows from operating activities:
Utilities
Liquor
Pool
Course
Operating income $
883,504
782,034
105,155
767,158
Adjustments to reconcile operating income
0
0
0
0
to net cash provided by operating activities
Depreciation expense
815,599
50,700
150,881
510,826
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
127
1,133
0
6,728
(Increase) decrease in customer accounts receivable
34.209
0
0
0
Increase in special assessments receivable
(24,239)
0
0
0
(Increase) decrease in taxes receivable
236
0
0
0
(Increase) decrease in due from other governments
(658)
0
0
0
Increase in inventory
(8,803)
(48,103)
0
(5,863)
Increase (decrease) in accounts payable
(1,066)
(105,029)
(125)
17,012
Increase in salaries payable
2,611
1,963
0
7,672
Increase (decrease) in contracts payable
(5,952)
0
0
0
Decrease in accrued interest payable
(7,795)
0
(459)
(84,230)
Increase (decrease) in due to other governments
(42,553)
5,912
56
1,358
Increase in compensated absences payable
(329)
(476)
0
706
Increase (decrease) in deposits payable
0
0
0
682
Decrease in deferred revenue
0
0
0
0
Increase (decrease) in due from other funds
(554,622)
(453,025)
(16,161)
0
Increase (decrease) in due to other funds
0
0
0
0
Total adjustments
206,765
(546,925)
134,192
454,891
Net cash provided by operating activities
1,090,269
235,109
239,347
1,222,049
Cash flows from noncapital financing activities:
Donations
0
0
0
0
Miscellaneous revenue (expense)
0
(903)
0
0
Increase (decrease) in advance to other funds
343,941
299,377
0
0
Increase (decrease) in advance from other funds
0
0
0
(299,377)
Operating transfer in (out } - General Fund
0
0
(150,000)
0
Operating transfer (out)--Art Center
0
(236,000)
0
0
Operating transfer in -- Liquor Store Fund
0
0
0
0
Operating transfer in -Golf Course Fund
0
0
0
0
Operating transfer (out) -Arena
0
(222.000)
0
(40,000)
Operating transfer (out)-Gun Range
0
0
0
0
Operating transfer (out) - Edinborough Park
0
0
0
0
Residual equity transfer out
0
0
0
0
Net cash (used) provided for noncapital financing activities
343,941
(159,526)
(150,000)
(339,377)
Cash flows from capital financing activities
Net acquisition of capital assets
Gain (loss) on sale of fixed assets
Principal paid on revenue bonds
Principal paid on capital lease
Interest earned from fiscal agent
Interest paid on capital lease
Interest paid on bonds
Net cash (used) provided for capital financing activities
Cash flows from investing activities
Decrease in interest receivable
Proceeds from sale of investments
Investment income
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and equivalents, beginning of year
Cash and equivalents, end of year
Supplemental disclosure of noncash noncapital financing activity:
Donation of investments
Contribution of fixed assets
Total noncash noncapital financing activity
(1,007,928)
(61.751)
(31,181)
(303,214)
(4,098)
(13,832)
0
8,424
(400,000)
0
(22,750)
(2.437,525)
0
0
0
(4,000)
0
0
0
0
0
0
0
(1,425)
(22,184)
0
(35,416)
(324,150)
(1,434,210)
(75,583)
(89,347)
(3,061,890)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(2,179,218)
0 4,340 0 2,183.712
0 4,340 0 4,494
0 0 0 0
22,126 0 18,725 0
$ 22,126 0 18,725 0
Page 73
Art
Edinborough Park
Totals
Arena
Center
Centennial Lake
1998
1997
(80,667)
(244,985)
(635,482)
1,576,717
977,074
313,940
37,317
140,945
2,020,208
1,779,721
69,488
0
(2,383)
75,093
(59,032)
0
0
0
34,209
(28,092)
0
0
0
(24,239)
(1,526)
0
0
0
236
(236)
0
0
0
(658)
3,757
0
(6,117)
0
(68,886)
(115,757)
(2,498)
27,626
(4,196)
(68,276)
266,609
(5,266)
1,084
1,592
9,656
19,564
0
0
0
(5,952)
14,357
(63,433)
0
0
(155,917)
(13,352)
(1,596)
401
301
(36,121)
289,668
1,237
2,088
(581)
2,645
6,772
0
0
0
682
(3,981)
0
0
0
0
(24,401)
0
643
(399)
(1,023,564)
(817,830)
0
0
0
0
(220,458)
311,872
63,042
135,279
759,116
1,095,783
231,205
(181,943)
(500,203)
2,335.833
2,072,857
0
13,692
0
13,692
23,836
0
10,984
0
10,081
6,556
0
0
0
643,318
194,137
(343,941)
0
0
(643,318)
(1,114,668)
0
0
222,000
72,000
1,600,000
0
0
0
(236,000)
(67,000)
222,000
236,000
0
458,000
214,408
40,000
0
0
40,000
0
0
0
0
(262,000)
(100,000)
0
0
0
0
(22,408)
0
0
0
0
(25,000)
0
0
0
0
(13,019)
(81,941)
260,676
222,000
95,773
696,842
(30,058)
(88,443)
(9,468)
(1,532,043)
(1,679,789)
(190)
0
(5,436)
(15,132)
(154,067)
(1,779,725)
0
0
(4,640,000)
(685,000)
(36,000)
0
(10,000)
(50,000)
(45,000)
0
0
0
0
182,924
(103,876)
0
(3,562)
(108,863)
(236,638)
(12,824)
0
0
(394.574)
(586,278)
(1,962,673)
(88.443)
(28,466)
(6,740,612)
(3,203,848)
0
0
4,936
4,936
16,063
0
10.266
0
10,266
0
0
0
301,325
301,325
374,217
0
10,266
306,261
316,527
390,280
(1,813,409)
556
(408)
(3,992,479)
(43,869)
1,814,957
225
2,143
4,005,377
4,049,246
1,548
781
1,735
12,898
4,005.377
0
0
0
0
10,266
264,249
322,929
293,589
921,618
5,681,704
264,249
322,929
293,589
921,618
5,691,970
Page 74
CITY OF EDINA, MINNESOTA
Utilities Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
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:
Bonds payable
Total liabilities
Fund equity:
Contributed capital
Retained earnings:
Reserved for debt service
Unreserved — undesignated
Total retained earnings
1998
$ 0
2,083,336
46,392
0
1,361,350
658
30,545
3,522,281
479,539
22,441,006
129
1997
127
2,117,545
22,153
236
806,728
0
21,742
2,968,531
823,480
22,226,551
1,669
$ 26,442,955 26,020,231
157,100
17,455
18,193
8,541
256,969
33,346
491,604
158,166
14,844
24,145
16,336
299,522
33,675
546,688
420,000 820,000
911,604 1,366,688
21,905
274,998
25,234,448
25,509,446
X
274,998
24,378,545
24,653, 543
Total liabilities and retained earnings $ 26,442,955 26,020,231
Page 75
CITY OF EDINA, MINNESOTA
Utilities Fund
Statement of Revenues, Expenses and Changes in Retained Earnings
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
1998
1997
Operating revenues:
Storm sewer charges $
575,658
571,312
Water charges
2,566,606
2,235,487
Sewer charges
4,377,827
4,627,618
Recycling
498,796
536,330
Sale of meters
25,086
15,946
Other
64,639
105,941
Total operating revenues
8,108,612
8,092,634
Operating expenses:
Disposal charges -- contractual services
3,185,784
3,715,800
Source of supply:
Personal services
102,938
102,672
Contractual services
59,302
80,149
Commodities
51,083
100,776
Distribution:
Personal services
228,629
252,934
Contractual services
492,250
447,026
Commodities
193,548
206,379
Purification:
Personal services
53,625
56,469
Contractual services
120,756
102,425
Commodities
109,534
54,371
Source of collection:
Personal services
46,951
51,454
Contractual services
8,436
7,938
Commodities
3,630
2,335
Storm sewer:
Personal services
35,956
71,074
Contractual services
114,227
115,767
Commodities
38,504
50,843
General and administrative:
Personal services
210,698
256,691
Contractual services
450,408
146,960
Commodities
15,620
6,322
Recycling:
Personal services
16,566
18,813
Contractual services
407,438
505,198
Commodities
7,014
4,150
Central services
456,612
396,096
Depreciation
815,599
771,851
Total operating expenses
7,225,108
7,524,493
CITY OF EDINA, MINNESOTA
Utilities Fund
Statement of Revenues, Expenses and Changes in Retained Earnings
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
1998 1997
Operating income $ 883,504 568,141
Nonoperating revenues (expenses):
interest and fiscal charges
Gain (loss) from sale of fixed assets
Amortization of bond discount
Total nonoperating expenses
Net income
Add depreciation on contributed assets
Increase in retained earnings
Retained eamings— January 1
Retained eamings — December 31
(22,184)
(40,744)
(4,098)
18,110
(1,540)
(1,540)
(27,822)
(24,174)
855,682
543,967
221
0
855,903
543,967
24,653,543
24,109,576
$ 25,509,446
24,653,543
Page 76
CITY OF EDINA, MINNESOTA
Utilities Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended year ended December 31,1997)
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) decrease in taxes receivable
(increase) decrease in due from other governments
Increase in inventory
Increase (decrease) in accounts payable
Increase in salaries payable
Increase (decrease) in contracts payable
Decrease in accrued interest payable
Increase (decrease) in due to other governments
Increase (decrease) in compensated absences payable
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 (loss) from sale of fixed assets
Principal paid on revenue 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
Page 77
1998 1997
$
883,504 568,141
815,599
127
34,209
(24,239)
236
(658)
(8,803)
(1,066)
2,611
(5,952)
(7,795)
(42,553)
(329)
0
(554,622)
206,765
1,090,269
343,941
343,941
(1,007,928)
(4,098)
(400,000)
(22,184)
(1,434,210)
771,851
3,106
(28,092)
(1,526)
(236)
3,757
(4,512)
2,672
2,488
14,357
(7,216)
289,395
2,922
(19,808)
(806,728)
222,430
790,571
665,884
665,884
(1, 043, 821)
18,110
(390,000)
(40,744)
(1,456,455)
0
0 0
Cash and cash equivalents, end of year $ 0 0
CITY OF EDINA, MINNESOTA
Liquor Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
Assets
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
1998 1997
$ 4,340
4,340
611
1,744
474,193
21,168
874,381
826,278
1,353,525
853,530
473,890 773,267
714,480 703,429
$ 2,541,895 2,330,226
307,092
412,121
19,013
17,050
93,826
87,914
12,695
13,171
432,626
530,256
2,109,269 1,799,970
$ 2,541,895 2,330,226
Page 78
Page 79
CITY OF EDINA, MINNESOTA
Liquor Fund
Statement of Revenues, Expenses and Changes in Retained Earnings
Sales
Cost of sales
Gross profit
Operating expenses:
Selling
Occupancy
Administrative
Total operating expenses
Operating income
Year ended December 31, 1998
(with comparative totals for year ended December 31, 1997)
Nonoperating revenues (expenses):
Miscellaneous expense (378) (480) (45) (903) (185)
Loss on sale of fixed assets (166) (12,939) (727) (13,832) (412)
Total nonoperating revenues (expenses) (544) (13,419) (772) (14,735) (597)
Income before operating transfer out
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
$ 110,860 384,411 272,028 767,299 720,658
(236,000) (67,000)
0 (22,408)
(222,000) (100,000)
0 (25,000)
(458,000) (214,408)
309,299 506,250
1,799,970 1,293,720
Retained eamings - December 31 $ 2,109,269 1,799,970
1998
1997
50th Street .
Yorkdale
Vernon
Totals
Totals
$ 1,640,224
3,713,423
2,632,930
7,986,577
7,426,218
1,214,787
2,818,936
2,006,170
6,039,893
5,607,325
425,437
894,487
626,760
1,946,684
1,818,893
111,444
192,500
146,369
450,313
400,901
47,446
64,374
27,366
139,186
128,762
155,143
239,783
180,225
575,151
567,975
314,033
496,657
353,960
1,164,650
1,097,638
111,404
397,830
272,800
782,034
721,255
Nonoperating revenues (expenses):
Miscellaneous expense (378) (480) (45) (903) (185)
Loss on sale of fixed assets (166) (12,939) (727) (13,832) (412)
Total nonoperating revenues (expenses) (544) (13,419) (772) (14,735) (597)
Income before operating transfer out
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
$ 110,860 384,411 272,028 767,299 720,658
(236,000) (67,000)
0 (22,408)
(222,000) (100,000)
0 (25,000)
(458,000) (214,408)
309,299 506,250
1,799,970 1,293,720
Retained eamings - December 31 $ 2,109,269 1,799,970
CITY OF EDINA, MINNESOTA
Liquor Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
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 (decrease) in accounts payable
Increase in salaries payable
Increase 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)—Art Center
Operating transfer (out) —Gun Range
Operating transfer (outr -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
1998
Page 80
1997
782,034 721,255
50,700
1,133
(48,103)
(105,029)
1,963
5,912
(476)
(453,025)
(546,925)
235,109
(903)
299,377
(236,000)
0
(222,000)
0
(159,526)
45,568
359
(113,787)
214,588
1,303
(9,863)
(3,895)
(21,168)
113,105
834,360
(185)
(547,007)
(67,000)
(22,408)
(100,000)
(25,000)
(761,600)
(61,751) (71,648)
(13,832) (412)
(75,583) (72,060)
700
4,340 3,640
Cash and cash equivalents, end of year $ 4,340 4,340
CITY OF EDINA, MINNESOTA
Liquor Fund
Schedule of Operating Expenses
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
Selling:
Personal services
Contractual services
Direct promotion
Commodities
Total selling
Occupancy:
Personal services
Contractual services:
Professional services
Burglar alarm
Heat
Laundry and rug service
Light and power
Maintenance, renting and cooling
Repair and maintenance
Rubbish hauling
Telephone
Water and sewer service
Commodities
Depreciation
Total occupancy
Administrative:
Personal services
Contractual services:
Data processing
Mileage
Professional service
Miscellaneous
Commodities
Central services
Total administrative
Page 81
Totals
50th Street
Yorkdale
Vernon
1998
1997
$ 102,831
178,244
137,058
418,133
369,793
4,348
2,686
2,890
9,924
10,187
4,265
11,570
6,421
22,256
20,921
111,444
192,500
146,369
450,313
400,901
3,713
4,025
1,116
8,854
7,947
1,021
12,553
682
14,256
11,841
585
631
331
1,547
2,249
437
1,448
1,152
3,037
4,324
1,129
2,201
664
3,994
3,914
10,649
13,991
7,688
32,328
28,770
434
1,119
683
2,236
1,051
3,987
3,773
204
7,964
4,613
1,615
855
808
3,278
1,979
1,138
1,385
1,012
3,535
9,504
238
152
196
586
445
4,357
2,459
55
.6,871
6,557
18,143
19,782
12,775
50,700
45,568
47,446
64,374
27,366
139,186
128,762
74,754
110,424
73,762
258,940
245,652
1,200
1,800
1,500
4,500
7,104
138
1,976
14
2,128
2,006
16,245
30,887
19,736
66,868
82,196
3,176
2,375
2,217
7,768
3,173
3,710
761
496
4,967
3,264
55,920
91,560
82,500
229,980
224,580
155,143
239,783
180,225
575,151
567,975
$ 314,033
496,657
353,960
1,164,650
1,097,638
Page 82
CITY OF EDINA, MINNESOTA
Swimming Pool Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
Assets
Current assets:
Due from other funds
Total current assets
Property and equipment, net
Discount on bonds
Total assets
Liabilities and Retained Earnings
Current liabilities:
Accounts payable
Accrued interest payable
Due to other governments
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)
1998 1997
$ 65,426 49,265
65,426 49,265
2,148,288 2,249,263
4,978 5,334
$ 2,218,692 2,303,862
287
412
17,614
18,073
56
0
17,957
18,485
610,000
632,750
627,957
651,235
1,670,967 1,749,152
32,500 32,500
(112,732) (129,025)
(80,232) (96,525)
Total liabilities and fund equity $ 2,218,692 2,303,862
Page 83
CITY OF EDINA, MINNESOTA
Swimming Pool Fund
Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit)
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
1998
1997
Operating revenues:
Season tickets $
281,849
153,712
General admissions
161,079
71,389
Rentals and instruction programs
2,923
10,042
Registration
24,700
24,250
Concessions (less cost of goods sold)
53,249
16,979
Total operating revenues
523,800
276,372
Operating expenses:
Personal services
158,847
124,320
Contractual services
72,122
37,331
Commodities
20,811
32,414
Central services
15,984
10,584
Depreciation
150,881
103,005
Total operating expenses
418,645
307,654
Operating income (loss)
105,155
(31,282)
Nonoperating expenses:
Miscellaneous expense
0
(262)
Interest and fiscal charges
(35,416)
(36,764)
Loss on sale of fixed assets
0
(95,649)
Amortization of bond discount
(356)
(356)
Total nonoperating expenses
(35,772)
(133,031)
Income (loss) before operating transfers
69,383
(164,313)
Operating Transfer out — General fund
(150,000)
0
Net income (loss)
(80,617)
(164,313)
Add depreciation on contributed assets
96,910
48,267
Increase (decrease) in retained earnings
16,293
(116,046)
Retained earnings (deficit) — January 1
(96,525)
19,521
Retained earnings (deficit) — December 31 $
(80,232)
(96,525)
CITY OF EDINA, MINNESOTA
Swimming Pool Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
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 accounts payable
Increase (decrease) in accrued interest payable
Increase in due to other governments
Increase in due from other funds
Total adjustments
Net cash provided by operating activities
Cash flows from noncapital financing activities:
Miscellaneous expense
Decrease in advance to other funds
Operating transfer out - General Fund
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
1998 1997
$ 105,155 (31,282)
150,881
0
(125)
(459)
56
(16,161)
134,192
239,347
0
0
(150,000)
(150,000)
(31,181)
0
(22,750)
(35,416)
(89,347)
103,005
35
305
199
0
(49,265)
54,279
22,997
(262)
74,975
0
74,713
44,703
(95,649)
(10,000)
(36,764)
(97,710)
0
0
Cash and cash equivalents, end of year $ 0 0
Page 85
CITY OF EDINA, MINNESOTA
Golf Course Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
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
Advance from other funds
Obligation under capital lease
Bonds payable
Total liabilities
Retained earnings:
Reserved for debt service
Unreserved -- undesignated
Total retained earnings
1998 1997
$ 4,400
94
6,970
62,049
73,513
4,000
2,179,712
13,698
56,186
2,253,596
7,625,200 7,832,811
42,634 46,173
$ 7,741,347 10,132,580
87,545
23,602
161,127
200,000
6,710
38,667
517,651
3,352
473,890
24,800
5,660,000
6,679,693
1,115,031
(53,377)
1,061,654
70,533
15,930
245,357
200,000
5,352
37,961
575,133
2,670
773,267
28,800
8,097,525
9,477,395
1,115,031
(459,846)
655,185
Total liabilities and retained earnings $ 7,741,347 10,132,580
Page 86
CITY OF EDINA, MINNESOTA
Golf Course Fund
Statement of Revenues, Expenses and Changes in Retained Earnings
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
1998 1997
Operating revenues:
Greens fees $
1,853,433
1,627,618
Golf cars
269,370
183,488
Other rental fees
87,778
132,325
Patron cards
139,149
141,546
Concessions (less cost of goods sold)
186,167
151,108
Range
320,909
312,308
Dome
429,334
472,670
Lessons
70,870
74,212
Pro Shop (less cost of goods sold)
90,323
66,634
Other
5,424
8,346
Total operating revenues
3,452,757
3,170,255
Operating expenses:
Administration
732,182
701,241
Building -club house
147,775
128,433
Maintenance of course and grounds
625,418
523,209
Range and grill
233,027
216,731
Dome
217,822
245,341
Richards
149,575
133,898
Pro Shop
68,974
57,279
Depreciation
510,826
516,927
Total operating expenses
2,685,599
2,523,059
Operating income
767,158
647,196
Nonoperating revenues (expenses):
Interest from fiscal agent
0
109,884
Interest and fiscal charges
(324,150)
(494,542)
Interest on capital lease
(1,425)
(1,581)
Gain (loss) on sale of fixed assets
8,424
(68,344)
Amortization of bond discount
(3,538)
(8,583)
Total nonoperating revenues(expenses)
(320,689)
(463,166)
Income before operating transfers
446,469
184,030
Operating transfer out - Arena
(40,000)
0
(40,000)
0
Net income
406,469
184,030
Retained eamings - January 1
655,185
471,155
Retained eamings- December 31 $
1,061,654
655,185
CITY OF EDINA, MINNESOTA
Golf Course Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
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 inventory
Increase in accounts payable
Increase in salaries payable
Decrease in accrued interest payable
Increase in due to other governments
Increase in compensated absences payable
Increase (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
Operating transfer out - Arena fund
Net cash used by noncapital financing activities
Cash flow from capital financing activities:
Net acquisition of capital assets
Gain (loss) from sale of fixed assets
Principal paid on revenue bonds
Principal paid on capital lease
Interest earned from fiscal agent
Interest paid on capital lease
Interest paid on bonds
Net cash used by capital financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Page 87
1998 1997
767,158
510,826
6,728
(5,863)
17,012
7,672
(84,230)
1,358
706
682
0
454,891
1,222,049
(299,377)
(40,000)
(339,377)
(303,214)
8,424
(2,437,525)
(4,000)
0
(1,425)
(324,150)
(3,061,890)
(2,179,218)
2,183,712
647,196
516,927
15,524
2,635
25,456
3,980
(5,958)
2,721
2,630
(3,981)
(4,593)
555,341
1,202,537
(56,910)
0
(56,910)
(439,075)
(68,344)
(265,750)
(3,600)
109,884
(1,581)
(494,542)
(1,163,008)
(17,381)
2,201,093
Cash and cash equivalents, end of year $ 4,494 2,183,712
Page 88
CITY OF EDINA, MINNESOTA
Golf Course Fund
Schedule of Operating Expenses
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
Administration
Personal services
Contractual services
Commodities
Central services
Total administration
Building -Club House
Personal services
Contractual services
Commodities
Total building -Club House
Maintenance of course and grounds:
1998 1997
$ 361,511
362,306
122,489
115,199
38,830
25,470
209,352
198,266
732,182
701,241
44,026
83,439
20,310
147,775
34,289
80,490
13,654
128,433
Personal services 397,341 371,266
Contractual services 93,689 34,766
Commodities 134,388 117,177
Total maintenance of course and grounds 625,418 523,209
Range and grill:
Personal services 179,139 167,173
Contractual services 12,747 6,257
Commodities 41,141 43,301
Total range and grill 233,027 216,731
Golf dome:
Personal services
90,266
96,573
Contractual services
75,151
120,859
Commodities
36,913
25,415
Central services
15,492
2,494
Total golf dome
217,822
245,341
Richards:
Personal services 100,141
87,732
Contractual services 26,561
22,006
Commodities 22,873
24,160
Total Richards 149,575
133,898
Pro Shop
Personal services 40,629 36,190
Contractual services 26,815 16,756
Commodities 1,530 4,333
68,974 57,279
Depreciation 510,826 516,927
Total operating expenses $ 2,685,599 2,523,059
Page 89
CITY OF EDINA, MINNESOTA
Arena Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
Assets 1998 1997
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 — undesignated
Total retained earnings (deficit)
$ 700
848
83,234
84,782
700
1,814,257
152,722
1,967,679
5,209,928 5,229,562
11,505 12,655
$ 5,306,215 7,209,896
37,707
5,485
51,307
50,000
6,763
16,810
168,072
3,500
5,040
479,539
223,200
1,860,000
2,739,351
3,661,502
184,591
(1,279,229)
(1,094,638)
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)
Total liabilities and retained earnings $ 5,306,215 7,209,896
Page 90
CITY OF EDINA, MINNESOTA
Arena Fund
Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit)
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
Operating expenses:
Personal services
1998
1997
Operating revenues:
359,122
264,574
Rental fees
$ 848,306
670,742
Season ticket sales
4,882
6,330
Daily skating fees
12,552
12,677
Admissions
65,777
60,866
Lessons
90,274
88,260
Concessions(less cost of goods sold)
2,027
1,934
Vending machine commissions
24,008
25,355
Services -skate sharpening
18,011
14,527
Total operating revenues
1,065,837
880,691
Operating expenses:
Personal services
337,846
317,737
Contractual services
359,122
264,574
Commodities
63,200
64,931
Central services
72,396
57,996
Depreciation
313,940
216,544
Total operating expenses
1,146,504
921,782
Operating income (loss)
(80,667)
(41,091)
Nonoperating revenues (expenses):
Donations
0
3,000
Interest from fiscal agent
0
73,040
Interest and fiscal charges
(103,876)
(231,105)
Interest on capital lease
(12,824)
(14,228)
Gain (loss) on sale of assets
(190)
0
Amortization of bond discount
(1,151)
(4,477)
Total nonoperating expenses
(118,041)
(173,770)
Net loss before operating transfer in
(198,708)
(214,861)
Operating transfer in:
Liquor store fund
222,000
100,000
Golf course fund
40,000
0
Total operating transfers
262,000
100,000
Net Income (loss)
63,292
(114,861)
Add depreciation on contributed assets
180,905
87,228
Increase (decrease) in retained earnings
244,197
(27,633)
Retained earnings (deficit)- January 1
(1,338,835)
(1,311,202)
Retained earnings (deficit)- December 31 $
(1,094,638)
(1,338,835)
CITY OF EDINA, MINNESOTA
Arena Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
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 (decrease) 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:
Donations
Increase (decrease) in advance from other funds
Operating transfer in— Liquor Fund
Operating transfer in —Golf Course Fund
Net cash (used) provided by noncapital financing activities
Cash flows from capital financing activities:
Net acquisition of capital assets
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 for capital financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Page 91
1998 1997
(80,667) (41, 091)
313,940
69,488
(2,498)
(5,266)
(63,433)
(1,596)
1,237
311,872
231,205
0
(343,941)
222,000
40,000
(81,941)
(30,058)
(190)
(1,779,725)
(36,000)
0
(103,876)
(12,824)
(1,962,673)
(1,813,409)
1,814,957
$ 1,548
216,544
(78,044)
27,364
5,484
(377)
7,512
1,514
179,997
138,906
3,000
69,474
100,000
0
172,474
(114,827)
0
(19,250)
(32,400)
73,040
(231,105)
(14,228)
(338,770)
(27,390)
1,842,347
1,814,957
CITY OF EDINA, MINNESOTA
Art Center Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
Assets
Current assets:
Petty cash and change funds
Investments
Due from other funds
Inventory
Total current assets
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
1998 1997
$ 781 225
0 10,266
0 643
15,274 9,157
16,055 20,291
572,382 198,327
$ 588,437 218,618
41,035
13,409
4,107
3,023
864
463
6,923
4,835
52,929
21,730
323,373 9,519
750 750
211,385 186,619
212,135 187,369
$ 588,437 218,618
Page 92
Page 93
CITY OF EDINA, MINNESOTA
Art Center Fund
Statement of Revenues, Expenses and Changes
in Retained Earnings
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
1998
1997
Operating revenues:
Memberships $
23,879
22,759
Registration fees
209,275
184,440
Media Lab
22,644
17,677
Retail sales, less cost of goods sold
15,365
15,142
Total operating revenues
271,163
240,018
Operating expenses:
Administration:
Personal services
129,126
109,392
Contractual services
11,789.
5,985.
Commodities .
51,109
27,678 _
Central services
37,884
23,220
Total administration
229,908
166,275
Occupancy:
Personal services
12,127
13,450
Contractual services
22,112
22,018
Commodities
6,302
6,417
Total occupancy
40,541
41,885
Media Lab:
Personal services
34,652
13,297.
Contractual services
40,764
1,776
Commodities
27,183
1,097
Total Media Lab
102,599
16,170
Class costs
3,474
2,648
Instructors -- personal services
102,309
104,562
Depreciation
37,317
20,017
Total operating expenses
516,148
351,557
Operating loss
(244,985) (111,539)
Nonoperating revenues:
Investment income
1,205
0
Donations
13,692
31,102
Miscellaneous revenue
9,779
7,003
Total nonoperating revenues
24,676
38,105
Net loss before operating transfer in
(220,309)
(73,434)
Operating transfer in- Liquor Store
236,000
67,000
236,000
67,000 -
Net Income (loss)
15,691
(6,434)
Add depreciation on contributed assets
9,075
501
Increase (decrease) in retained earnings
24,766
(5,933)
Retained eamings - January 1
187,369
193,302
Retained earnings- December 31 $
212,135
187,369
Page 94
CITY OF EDINA, MINNESOTA
Art Center Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997) .
1998 1997.
Cash flows from operating activities:
Operating loss
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation expense
Changes in assets and liabilities:. .
Increase in inventory
Increase in accounts payable
Increase in salaries payable
Increase (decrease) in:due to other governments
Increase in compensated absences payable
(Increase) decrease in due from other funds
Total adjustments
Net cash used by:operating activities
Cash flows from noncapital financing activities:
'Donations
Miscellaneous revenue
Decrease in advance to other funds
Operating transfer in— Liquor Store .
Net cash provided by noncapital financing activities
Cash flow from capital financing activities:
Net acquisition of capital assets
Net cash used by capital financing activities
Cash flow from investing activities:
Proceeds from sale of investments
Net cash provided by investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Supplemental disclosure of noncash noncapital financing activity:
Donation of investments
$ (244,985) (111,539)
37,317 20,017
(6,117) (93)
27,626 3,868
1,084 1,519
. 401 (107)
2,088 355
643 (643)
63,042 24,916
(181,943) (86,623)
13,692 20,836
10,984 7,003
0 285
236,000 67,000
260,676 95,124
(88,443) (8,501)
(88,443) (8,501)
10,266 0
10,266 0
556 0
225 225
$ 781 225
$ 0 10,266
Page 95
CITY OF EDINA, MINNESOTA
Edinborough Park/Centennial Lake Fund
Balance Sheet
December 31, 1998
(with comparative amounts for December 31, 1997)
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 governments
Compensated absences payable
Total current liabilities
Long -term liabilities:
Obligation under capital lease
Total liabilities
Fund equity:
Contributed capital
Retained earnings (deficit):
Unreserved— undesignated
Total retained earnings (deficit)
1998 1997
$ 1,500
235
2,750
48,674
22,609
75,768
1,500
643
367
53,610
22,210
78,330
1,137,089 974,977
$ 1,212.857 1,053,307
23,649
16,720
1,648
24,512
66,529
27,845
15,128
1,347
25,093
69,413
62,000 72,000
128,529 141,413
940,173 759,782
144,155 152,112
144,155 152,112
Total liabilities and retained earnings $ 1,212,857 1,053,307
Page 96
CITY OF EDINA, MINNESOTA
Edinborough Park/Centennial Lake Fund
Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit)
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
Operating expenses:
Personal services
1998
1997
Operating revenues:
292,483
296,927
Association fees $
316,685
278,964
Rental fees
166,781
165,876
Admissions
67,908
67,298
Season ticket sales
17,163
13,395
Skate rental
33,237
29,600
Concessions (less cost of goods sold)
5,645
4,148
Program income
17,642
13,546
Greens fees
125,560
27,694
Other
2,150
4,827
Total operating revenues
752,771
605,348
Operating expenses:
Personal services
616,154
673,461
Contractual services
292,483
296,927
Commodities
164,215
143,966
Central services
174,456
153,408
Depreciation
140,945
103,414
Total operating expenses
1,388,253
1,371,176
Operating loss
(635,482)
(765,828)
Nonoperating revenues (expenses):
Investment income
301,325
374,217
Interest on capital lease
(3,562)
(3,952)
Loss on sale of assets
(5,436)
(6,710)
Total nonoperating revenues
292,327
363,555
Net loss before operating transfers
(343,155)
(402,273)
Operating transfer in - General Fund
222,000
1,600,000
Operating transfer in - Liquor Fund
0
25,000
Total operating transfers
222,000
1,625,000
Net income (loss)
(121,155)
1,222,727
Add depreciation on contributed assets
113,198
78,078
Increase (decrease) in retained earnings
(7,957)
1,300,805
Retained earnings (deficit) -- January 1
152,112
(1,148,693)
Retained earnings (deficit) - December 31 $
144,155
152,112
CITY OF EDINA, MINNESOTA
Edinborough Park/Centennial Lake Fund
Statement of Cash Flows
Year ended December 31, 1998
(with comparative amounts for year ended December 31, 1997)
Cash flows from operating activities:
Operating loss
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depredation expense
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
Decrease in accounts payable
Increase in salaries payable
Increase in due to other government
Increase (decrease) in compensated absences payable
(Increase) decrease in due from other funds
Decrease in due to other funds
Total adjustments
Net cash used by operating activities
Cash flows from noncapital financing activities:
Decrease in advance from other funds
Operating transfer in - General Fund
Operating transfer in - Liquor Fund
Net cash provided by noncapital financing activities
Cash flow from capital financing activities:
Net acquisition of capital assets
Loss on sale of fixed assets
Principal paid on capital lease
Interest paid on capital lease
Net cash used by capital financing activities
Cash flows from investing activities:
Decrease in interest receivable
Investment income
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
Page 97
1998 1997
3 (635,482) (765,828)
140,945
(2,383)
(4,196)
1,592
301
(581)
(399)
0
135,279
(500,203)
222,000
0
222,000
(9,468)
(5,436)
(10,000)
(3,562)
(28,466)
103,414
(12)
(6,482)
4,790
42
3,246
59,331
(205,984)
(41,655)
(807,483)
(1,127,232)
1,600,000
25,000
497,768
(60,701)
(6,710)
(9,000)
(3,952)
(80,363)
4,936
16,063
301,325
374,217
306,261
390,280
(408)
202
2,143
1,941
$ 1,735
2,143
Page 98
TRUST AND AGENCY FUNDS
Trust funds account for assets held by a governmental unit in a trustee capacity for
individual organizations, other governmental units, and other funds. The city has
one expendable trust fund.
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.
Agency funds account for assets held by a governmental unit as an agent for
individuals, private organizations, other governmental units and other funds. The
city has the following Agency funds.
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.
CITY OF EDINA, MINNESOTA
Trust and Agency Funds
Combining Balance Sheet
Year ended December 31, 1998
(with comparative totals for December 31, 1997)
Expendable
Trust Agency
Deferred Police 1 -494
Compensation Seizure Commission
Assets:
Page 99
Totals
1998 1997
Cash
$
0
163,764
8,618
172,382
143,888
Investments
0
0
29,654
29,654
119,159
Cash and investments with
plan administrators
3,095,848
0
0
3,095,848
2,510,513
Due from other governments
0
0
40,960
40,960
6,420
Total assets
$
3,095,848
163,764
79,232
3,338,844
2,779,980
Liabilities:
Accounts payable
$
0
0
112
112
7,981
Due to other funds
0
13,478
0
13,478
13,478
Due to other governments
0
150,286
79,120
229,406
248,008
Total liabilities
0
163,764
79,232
242,996
269,467
Fund balance:
Reserved for deferred
compensation plan participants
3,095,848
0
0
3,095,848
2,510,513
Total liabilities and fund balances
$
3,095,848
163,764
79,232
3,338,844
2,779,980
Page 100
CITY OF EDINA, MINNESOTA
Deferred Compensation Expendable Trust Fund
Balance Sheet
Year ended December 31, 1998
(with comparative totals for December 31, 1997)
1998 1997
Assets:
Cash and cash equivalents $ 3,095,848 2,510,513
Liabilities and fund balances:
Fund balance:
Reserved for deferred
compensation plan participants $ 3,095,848 2,510,513
Page 101
CITY OF EDINA, MINNESOTA
Deferred Compensation Expendable Trust Fund
Statement of Revenues, Expenditures and Changes in Fund Balances
Year ended December 31, 1998
(with comparative totals for December 31, 1997)
Revenues:
Net appreciation
in fair value of investments
Employee contributions
Total revenues
Expenditures:
Distributions to plan participants
Administrative expense
Total expenditures
Excess of revenues over expenditures
1998
$ 311,149
294,958
606,107
15,921
4,851
20,773
585,335
Fund balance - January 1 2,510,513
Cummulative effect of adoption of GASB 32
Fund balance as restated 2,510,513
1997
330,374
284,038
614,412
38,063
4,122
42,185
572,227
0
1,938,286
1,938,286
Fund balance - December 31 $ 3,095,848 2,510,513
Page 102
CITY OF EDINA, MINNESOTA
Agency Funds
Statement of Changes in Assets and Liabilities
Police Seizure Fund
Assets:
Cash
Liabilities:
Due to other funds
Due to other governments
1-494 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
Due from other governments
Total assets
Liabilities:
Accounts payable
Due to other funds
Due to other governments
Total liabilities
Year ended December 31, 1998
Balance Balance
1/1/98 Additions Deductions 12/31/98
$ 139,790 23,974 0 163,764
13,478 0 0 13,478
126,312 23,974 0 150,286
$ 139,790 23,974 0 163,764
4,098
4,520
0
8,618
119,159
0
89,505
29,654
6,420
34,540
0
40,960
129,677
39,060
89,505
79,232
7,981
0
7,869
112
121,696
0
42,576
79,120
129,677
0
50,445
79,232
$ 143,888
28,494
0
172,382
119,159
0
89,505
29,654
6,420
34,540
0
40,960
$ 269,467
63,034
89,505
242,996
$ 7,981
0
7,869
112
13,478
0
0
13,478
248,008
23,974
42,576
229,406
$ 269,467
23,974
50,445
242,996
Page 103
GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Account Group provides for the accounting of fixed assets
other than those accounted for in the Enterprise Funds.
CITY OF EDINA, MINNESOTA
General Fixed Assets Account Group
Schedule of General Fixed Assets
December 31, 1998
(with comparative amounts for December 31, 1997)
General fixed assets:
Land and land improvements
Buildings
Furniture and fixtures
Vehicles and equipment
Parks
Construction -in- progress
Total general fixed assets
Total investment in general fixed assets
1998 1997
$ 35,755,707
35,384,971
20,454,112
20,453,411
1,237,235
999,719
10,476,565
9,414,564
9,732,548
9,148,021
5,697,874
2,723,427
78,124,113
$ 83,354,041
$ 83,354,041
78,124,113
Page 104
Page 105
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, 1998
(with comparative amounts for December 31, 1997)
Amount available and to be provided
for the retirement of long -term debt:
General Obligation Bonds:
Amount available with fiscal agents
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 106
1998 1997
$ 0 19,464,707
53,090,000 52,925,293
8,630,862 8,683,989
530,000 715,000
582,459 522,035
$ 62,833,321 82,311,024
582,459
540,862
61,710,000
522,035
593,989
81,195,000
Total general long -term debt payable $ 62,833,321 82,311,024
Page 107
CITY OF EDINA, MINNESOTA
Combined Schedule of Bonded Indebtedness
December 31, 1998
Revenue Bonds:
Recreation Bonds of 1988
6.10- 7.30
10/01/88
Final
Recreation Bonds of 1989
Interest
Issue
maturity
Recreation Bonds, Series 1992A
rate
date
date
Bonded indebtedness:
4.40- 6.00
11/01/92
01/01/09
Tax Increment Bonds:
3.80- 4.90
11/01/92
02/01/99
Tax Increment Bonds, Series 1988
6.40- 7.30
10/01/88
02/01/09
Tax Increment Bonds, Series 1989
6.80- 7.30
04/01/89
02101/09
Tax Increment Refunding Bonds, Series 1992B
4.90- 6.00
11/01/92
02101/09
Tax Increment Refunding Bonds, Series 1993A
4.25- 5.10
04/13/93
02/01/06
Tax Increment Refunding Taxable Bonds, Series 1996A
5.85-6.25
03/01/96
02101/09
Tax Increment Temporary Bonds, Series 1997B
4.5
08/15/97
08/15/00
Tax Increment Bonds, Series 1997B
4.50-5.50
04/01/97
02101/13
General Obligation Bonds:
General Obligation Park & Rec Bonds, Series 1996B
4.25 -5.75
08/01/96
02/01/07
Improvement Bonds:
Improvement Refunding Bonds, Series 1992E
4.00- 5.20
11/01/92
02101/01
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
02/01/99
Total bonded indebtedness
1998 Percent
paid by tax Authorized
levies and issued
Page 108
Exhibit 1
Indebtedness
Due in 1999
Redeemed Outstanding Principal Interest
None $
10,175,000
10,175,000
0
0
0
None
8,425,000
8,425,000
0
0
0
None
17,930,000
0
17,930,000
595,000
1,010,577
None
19,580,000
3,260,000
16,320,000
1,635,000
763,690
None
11,250,000
0
11,250,000
500,000
667,925
None
2,500,000
0
2,500,000
0
93,750
None
5,090,000
0
5,090,000
100,000
261,955
74,950,000
21,860,000
53,090,000
2,830,000
2,797,897
None
8,090,000
0
8,090,000
265,000
423,369
None
900,000
370,000
530,000
180,000
22,250
900,000
370,000
530,000
180,000
22,250
None
2,470,000
2,470,000
0
0
0
None
2,100,000
2,100,000
0
0
0
None
3,975,000
220,000
3,755,000
105,000
215,086
None
4,650,000
275,000
4,375,000
325,000
236,785
None
1,210,000
790,000
420,000
420,000
10,290
14,405,000
5,855,000
8,550,000
850,000
462,161
$
98,345 ,O00
28.085,000
70.260,000
4,125.000
3.705.677
Tax Increment Bonds
General Obligation Bonds
Improvement Bonds
Revenue Bonds
Page 109
Exhibit 2
CITY OF EDINA, MINNESOTA
Schedule of Changes in Bonded Indebtedness
Year ended December 31, 1998
Balance Balance
January 1 Issued Redeemed December 31
$ 72,390,000
8,090,000
715,000
13,190,000
$ 94,385,000
0
0
0
0
19,300,000
0
185,000
4,640,000
53,090,000
8,090,000
530,000
8,550,000
0 24,125,000 70,260,000
Page 110
Exhibit 3
CITY OF EDINA, MINNESOTA
Schedule of Bonds Payable
December 31, 1998
Issue Interest Maturity Principal
date rate date amount
Tax Increment Bonds:
Bonds maturing in the years 1999 through 2009 called on February 1, 1998.
$17,930,000 Tax Increment
Refunding Bond, Series 1992B
11/1/92
$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
2/1/04
1,410,000
$1,470,000.
5.70
2/1/05
1,470,000
$1,635,000.
5.80
2/1/06
1,635,000
$2,490,000.
5.90
2/1/07
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
$1,635,000.
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
2/1/02
2,415,000
$2,455,000.
5.00
2/1/03
2,455,000
$2,230,000.
5.10
2/1/04
2,230,000
$2,555,000.
5.10
2/1/05
2,555,000
$1,740,000.
5.10
2/1/06
1,740,000
16,320,000
$11,250,000 Tax Increment
Taxable Refunding Bond, Series 1996A
3/1/96
$500,000
5.85
2/1/99
500,000
$625,000
5.85
2/1/00
625,000
$650,000
5.85
2/1/01
650,000
$700,000
5.85
2/1/02
700,000
$800,000
5.85
2/1/03
800,000
$900,000
6.00
2/1/04
900,000
$900,000
6.10
2/1/05
900,000
$1,000,000
6.10
2/1/06
1,000,000
$1,475,000
6.15
2/1/07
1,475,000
$1,800,000
6.20
2/1/08
1,800,000
$1,900,000
6.25
2/1/09
1,900,000
11,250,000
(Continued)
Page 111
Exhibit 3, Cont.
CITY OF EDINA, MINNESOTA
Schedule of Bonds Payable, Continued
Issue Interest Maturity Principal
date rate date amount
$2,500,000 Tax Increment
Temporary Bond, Series 1997B 8/15/97
4.50 8/15/00 2,500,000
$2,500,000
$5,090,000 Tax Increment
Temporary Bond, Series 1997B
4!7/97
$100,000
4.50
2/1/99
100,000
$125,000
4.65
2/1/00
125,000
$150,000
4.75
2/1/01
150,000
$175,000
4.80
2/1/02
175,000
$200,000
4.85
2/1/03
200,000
$225,000
4.95
2/1/04
225,000
$250,000
5.05
2/1/05
250,000
$405,000
5.10
211/06
405,000
$425,000
5.15
2/1/07
425,000
$445,000
5.20
2/1/08
445,000
$465,000
5.30
2/1/09
465,000
$490,000
5.30
2/1/10
490,000
$515,000
5.35
2/1/11
515,000
$545,000
5.40
2/1/12
545,000
$575,000
5.50
2/1/13
575,000
5,090,000
Total tax increment bonds
53,090,000
General Obligation Bonds:
$8,090,000 General Obligation Park & Rec
Bond, Series 1996B
8/1/96
$265,000
4.25
2/1/99
265,000
$275,000
4.40
2/11/00
275,000
$300,000
4.50
2/1/01
300,000
$300,000
4.65
2/1/02
300,000
$325,000
4.80
2/1/03
325,000
$325,000
4.90
2/1/04
325,000
$350,000
5.00
2/1/05
350,000
$375,000
5.10
2/1/06
375,000
$375,000
5.20
2/1/07
375,000
$400,000
5.30
2/1/08
400,000
$425,000
5.40
2/1/09
425,000
$450,000
5.45
2/1/10
450,000
$475,000
5.50
2/1/11
475,000
$500,000
5.55
2/1/12
500,000
$525,000
5.60
2/1/13
525,000
$550,000
5.65
2/1/14
550,000
$600,000
5.70
2/11/115
600,000
$625,000
5.75
2/1/16
625,000
$650,000
5.75
2/11/117
650,000
Total General Obligation Bonds
8,090,000
(Continued)
Page 112
Exhibit 3, Cont.
CITY OF EDINA, MINNESOTA
Schedule of Bonds Payable, Continued
Issue
Interest
Maturity
Principal
date
rate
date
amount
Improvement Bonds:
$900,000 Improvement
Refunding Bonds, Series 1992E
11/1/92
$180,000.
4.90
2/3/99
180,000
$180,000.
5.00
2/5/00
180,000
$170,000.
5.20
2/5/01
170,000
Total Improvement Bonds
530,000
Revenue Bonds:
$3,975,000 Recreational Facility
Bonds, Series 1992A
11/1/92
$105,000.
4.90
11/1/99
105,000
$130,000.
5.00
1/2/00
130,000
$135,000.
5.20
`1/1/01
135,000
$170,000.
5.40
1/1102
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
1/1/08
260,000
$275,000.
5.90
1/1/07
275,000
$285,000.
5.95
1/1/08
285,000
$305,000.
6.00
1/1/09
305,000
$320,000.
6.00
1/1/10
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
3,755,000
$4,650,000 Recreational Facility
Refunding Bonds, Series 1992C
11/1/02
$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
1/1/08
495,000
$505,000.
6.00
1/1/09
505,000
4,375,000
$1,210,000 Utility Revenue
Refunding Bonds, Series 1992D
11/1/92
$420,000.
4.90
2/1/99
420,000
Total revenue bonds
8,550,000
Total bonds payable
70,260,000
Exhibit 4
CITY OF EDINA, MINNESOTA
December 31, 1998
Year
Tax Increment Bonds
General Obligation Bonds
Improvement Bonds
Revenue Bonds
Ended
Principal
Interest
Principal
Interest
Principal
Interest
Principal
Interest
1999
2,830,000
2,798,760
265,000
423,369
180,000
22,250
850,000
462,163
2000
5,595,000
2,659,264
275,000
411,688
180,000
13,340
450,000
430,088
2001
3,270,000
2,402,000
300,000
398,888
170,000
4,420
470,000
406,618
2002
4,415,000
2,204,768
300,000
385,163
0
0
530,000
380,088
2003
4,720,000
1,966,138
325,000
370,388
0
0
565,000
350,240
2004
4,765,000
1,712,811
325,000
354,625
0
0
615,000
317,483
2005
5,175,000
1,443,088
350,000
337,913
0
0
660,000
281,453
2006
4,780,000
1,169,665
375,000
319,600
0
0
695,000
242,488
2007
4,390,000
906,559
375,000
300,288
0
0
720,000
201,093
2008
5,335,000
616,770
400,000
279,938
0
0
780,000
156,648
2009
5,690,000
286,025
425,000
257,863
0
0
810,000
109,143
2010
490,000
101,593
450,000
234,125
0
0
320,000
75,243
2011
515,000
74,831
475,000
208,800
0
0
340,000
55,358
2012
545,000
46,340
500,000
181,863
0
0
360,000
34,183
2013
575,000
15,813
525,000
153,288
0
0
385,000
11,646
2014
0
0
550,000
123,050
0
0
0
0
2015
0
0
600,000
90,413
0
0
0
0
2016
0
0
625,000
55,344
0
0
0
0
2017
0
0
650,000
18,688
0
0
0
0
2018
0
0
0
0
0
0
0
0
$ 53,090,000
18,404,423
8,090,000
4,905,288
530,000
40,010
8,550,000
3,513,929
W
Page 114
Exhibit 5
CITY OF EDINA, MINNESOTA
Assessed Valuation, Tax Levies and Mill Rates
(shown by year of tax collectibility)
Tax levies:
General Fund $ 11,390,898 12,178,440 12,531,244 13,099,140 14,012,337
Tax Capacity Rate:
General Fund 15.577 16.331 15.626 16.813 19.797
1995
1996
1997
1998
1999
Assessed valuation/tax capacity
$ 84,055,819
85,775,887
91,586,990
87,726,810
85,963,836
increment valuation
(5,162,771)
(4,848,313)
(5,517,147)
(5,729,884)
(6,230,928)
Contribution to fiscal disparities pool
(8,042,316)
(8,442,482)
(8,385,640)
(6,451,992)
(7,511,473)
Received from fiscal disparities pool
2,214,875
2,301,627
2,402,957
2,217,217
2,199,224
Taxable valuation
$ 73,065,607
74,786,719
80,087,160
77,762,151
74,420,659
Tax levies:
General Fund $ 11,390,898 12,178,440 12,531,244 13,099,140 14,012,337
Tax Capacity Rate:
General Fund 15.577 16.331 15.626 16.813 19.797
��Peat Marwick LLP
4200 Norwest Center
2n South Seventh Street
Minneapolis, MN 55402
Independent Auditors' Report on Compliance and on Internal Control
Over Financial Reporting Based on'an Audit of Financial, Statements
Performed in Accordance With Government Auditing Standards
Honorable Mayor and Members
of the City Council
City of Edina, Minnesota:
EXHIBIT 6
We have audited the general purpose financial statements of the City of Edina, Minnesota (the
City), as of and for the year ended December 31, 1998, and have issued our report thereon April 2,
1999. Our report refers to the adoption of Governmental Accounting Standards Board's Statement
No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment
Pools. We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's general purpose financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grants, noncompliance with which could have a
direct and material effect on the determination of general purpose financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion
on the general purpose financial statements and not to provide assurance on the internal control
over financial reporting. Our consideration of the internal control over financial reporting would
not necessarily disclose all matters in the internal control over financial reporting that might be
material weaknesses. A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low level the risk that
misstatements in amounts that would be material in relation to the general purpose financial
statements being audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. We noted no matters involving the internal
control over financial reporting and its operation that we consider to be material weaknesses.
115
111T111 Member Firm of KPMG International
KPMnGJ Peat Marwick LLP
This report is intended solely for the information and use of the City Council and federal awarding
agencies and pass- through entities and is not intended to be and should not be used by anyone
other than these specified parties.
�*'►�G�ec,�- M!(a -wick LLB
Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
Independent Auditors' Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control Over
Compliance in Accordance with OMB Circular A -133 and on the
Schedule of Expenditures of Federal Awards
Honorable Mayor and Members
of the City Council
City of Edina, Minnesota:
Compliance
EXHIBIT 7
We have audited the compliance of the City of Edina, Minnesota (the City), with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular
A -133 Compliance Supplement that are applicable to its major federal programs for the year ended
December 31, 1998. The City's major federal program is identified in the summary of auditors'
results section of the accompanying schedule of findings. and questioned costs. Compliance with
the requirements of laws, regulations, contracts, and grants applicable to its major federal program
is the responsibility of the City's management. Our responsibility is to express an opinion on the
City's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards;
the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local
Governments, and Non-profit Organizations. Those standards and OMB Circular A -133 require
that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis, evidence
about the City's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis
for our opinion. Our audit does not provide a legal determination on the City's compliance with
those requirements.
In our opinion, the City complied, in all material respects, with the requirements referred to above
that are applicable to its major federal program for the year ended December 31, 1998.
Internal Control Over Compliance
The management of the City is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts, and grants applicable to
federal programs., In planning and performing. our audit, we considered the City's internal control
over compliance with requirements that could have a direct and material effect on a major federal
program in order to determine our auditing procedures for the purpose of expressing our opinion
on compliance and to test and report on internal control over compliance in accordance with OMB
Circular A -133.
117
FIF]IJIMember Firm of KPMG International
Peat Marwick LLP
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might . be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components does
not reduce to a relatively low level_ the risk that noncompliance with applicable requirements of
laws, regulations, contracts, and grants . that would be material in relation to a major federal
program being audited may occur and not be detected within_a timely_ period by employees in the
normal course of.performing their assigned functions. We noted;.no, matters,mv_olving the. internal
control over compliance and its operation that we consider to be material' weaknesses i
Schedule of Expenditures of Federal Awards ' Y.
We have audited the general purpose financial statements of the City as,of and for the�yearbnded
December 31, 1998, and have issued our report thereon dated April 2, 1999. Our report refers, to
the adoption of Governmental Accounting .Standards � Board's Statement No. 31, Accounting and
Financial Reporting for Certain Investments and for External Investment Pools. Ouraaidit was
performed for the purpose of forming an opinion on the general purpose financial statements taken
as a whole. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by OMB Circular A -133, and is not a required part of
the general purpose financial statements. 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.
This report is intended solely for the information and use of the City Council, and federal awarding
agencies and pass- through entities and is not intended to be and should not be used by anyone
other than these specified parties.
April 2, 1999
Iv(��eal- MA~ick LLP
118
CITY OF EDINA, MINNESOTA
Schedule of Expenditures of Federal Awards
Year ended December 31, 1998
Department of Housing & Urban Development
Passed through:
Hennepin County
Community Development Block Grants/Entitlement Grants
Department of Transportation
Passed through:
Minnesota Department of Public Safety
Crime Victim Compensation
Safe & Sober Grant
Operation Nightwatch
Federal Emergency Management Agency
Passed through:
Minnesota Department of Public Safety
Local Warning Grant
Disaster Relief
Disaster Assistance
119
EXHIBIT 8
Federal
CFDA Federal
number expenditures
14.218 $ 96,368
16.576 440
20.600 11,037
20.601 560
83.503
5,926
83.516
73,589
83.544
437,697
$ 625,617
CITY OF EDINA, MINNESOTA
Notes to Schedule of Expenditures of Federal Awards
Year ended December 31, 1998
(1) General
EXHIBIT 9
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
the City of Edina, Minnesota (the City). The information in this schedule is presented in accordance
with the requirements of OMB Circular A -133, Audits of States, Local Governments, and Non-profit
Organizations. Amounts presented in this schedule agreed to amounts presented in the general
purpose financial statements.
(2) Basis of Accounting
The accompanying schedule of expenditures of federal awards is presented using the modified accrual
basis of accounting, which is described in note 1 to the City's general purpose financial statements.
120
EXHIBIT 10
CITY OF EDINA, MINNESOTA
Schedule of Findings and Questioned Costs
Year ended December 31, 1998
Section I— Summary of Auditors' Results
1. The type of report issued on the general purpose financial statements: Unqualified opinion
2. Reportable conditions in internal control that were disclosed by the audit of the financial statements:
None reported Material weaknesses: None
3. Noncompliance that is material to the general purpose financial statements: None
4. Reportable conditions in internal control over major programs: None reported Material weaknesses:
None
5. The type of report issued on compliance for major programs: Unqualified opinion
6. Any audit findings that are required to be reported under section 510(a) of OMB Circular A -133: No
7. Major programs: FEMA Disaster Assistance CFDA Number 83.544.
8. rDollar threshold used to distinguish between Type A and Type B programs: $300,000
9. Auditee qualified as a low -risk auditee under section 530 of OMB Circular A -133: Yes
Section II— Findings Relating to the Financial Statements Reported in Accordance with Government
Auditing Standards:
None
Section III— Findings and Questioned Costs Relating to Federal Awards:
None
121
k;Wk Peat Marwick LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
Independent Auditors' Report on Minnesota Legal Compliance
To the Honorable Mayor and Members of the City Council
City of Edina, Minnesota:
EXHIBIT 11
We have audited the general purpose financial statements of the City of Edina, Minnesota (the
City), as of and for the year ended December 31, 1998, and have issued our report thereon dated
April 2, 1999.
We conducted our audit in accordance with generally accepted auditing standards and the
provisions of the Minnesota Legal Compliance Audit Guide for Local Government, promulgated
by the Legal Compliance Task Force pursuant to Minnesota Statute Sec. 6.65. Accordingly, the
audit included such tests of the accounting records and such other auditing procedures, as we
considered necessary in the circumstances.
The Minnesota Legal Compliance Audit Guide for Local Government covers five main categories
of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest,
public indebtedness, and claims and disbursements. Our study included all of the listed categories.
The results of our tests indicate that for the items tested, the City complied with the material terms
and conditions of applicable legal provisions. Further, for the items not tested, based on our audit .
and the procedures referred to above, nothing came to our attention to indicate that the City had
not complied with such legal provisions.
This report is intended solely for the information and use of the City Council and management of
the City and is not intended to be and should not be used by anyone other than these specified
parties.
M,,. ir-k LLP
April 2, 1999
122
[111T Member Firm of KPMG International
STATISTICAL
SECTION
Table 1
CITY OF EDINA, MINNESOTA
General Governmental Expenditures by Function (a)
Last Ten Fiscal Years
(Unaudited - see accompanying auditors' report)
Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds.
W
co
m
N
W
Unallocated
Fiscal
General
Public
Public
general
Capital
Debt
year
government
safety
works
Parks
expenditures
Other
outlay
service
Total
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
1998
2,528,560
8,131,293
4,084,651
1,960,111
333,793
1,104,738
7,530,051
6,324,533
31,997,730
Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds.
W
co
m
N
W
m
rn
CD
N
A
Table 2
CITY OF EDINA, MINNESOTA
General Governmental Revenues by Source (a)
Last Ten Fiscal Years
(Unaudited - see accompanying auditors' report)
Interest
on funds
Licenses
Charges
held with
Sales and
Fiscal
Special
Franchise
and
Inter-
for
Fines and
Interest on
fiscal
rental of
year
Taxes
assessments
Fee
permits governmental
services
forfeitures
investments
agent
property
Miscellaneous
Totals
1989
11,050,785
936,026
49,989
893,191
3,548,522
873,549
487,957
1,737,726
0
151,180
1,613,999
21,322,904
1990
12,968,717
938,042
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
1,749,831
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
1,251,803
322,992
591,985
1,727,103
174,970
1,016,605
28,771,756
1995
15,534,902
858,897
209,519
1,070,352
5,693,802
1,510,470
545,996
411,345
1,742,621
68,871
591,318
28,238,093
1996
18,089,705
969,468
224,489
1,382,427
3,928,352
1,821,635
456,589
950,129
1,175,976
108,111
292,018
27,198,899
1997
17,653,821
955,206
331,527
1,388,968
1,996,744
2,842,923
562,910
1,199,251
1,038,850
152,398
194,679
28,317,077
1998
20,587,867
844,070
296,427
2,091,365
2,551,452
1,833,148
691,355
1,353,521
43,331
88,839
604,099
30,963,274
Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds.
m
rn
CD
N
A
Table 3
CITY OF EDINA, MINNESOTA
Property Tax Levies and Collections
Last Ten Fiscal Years
(Unaudited - see accompanying auditors' report)
v
N
CTl
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
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%
1998
13,099,140
13,003,882
99.27%
48,985
13,052,867
99.65%
54,226
0.41%
v
N
CTl
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)
Real property
Assessment
Assessed value/
year
tax capacity
1989
87,055,570
1990
90,320,919
1991
87,214,668
1992
83,480,350
1993
81,413,953
1994
82,244,215
1995
84,055,819
1996
85,775,887
1997
91, 586, 990
1998
87,726,810
Estimated
market value
3,212,261,700
3,388,087,700
3,496,892,900
3,568,897,100
3,607,576,600
3,733,888,400
3,849,796,600
4,071,654,134
4,074,713,634
4,267,758,501
Page 126
Table 4
Ratio of total
assessed value/
tax capacity to
total estimated
market value
2.71%
2.67%
2.49%
2.34%
2.26%
2.20%
2.18%
2.11%
2.25%
2.06%
Page 127
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
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
1998
16.813 -
16.813
47.499
38.388
7.538
110.682
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)
n,
CD
CD
J
N
00
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
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
1998
654,442
635,476
97.10%
3,798
639,274
97.68%
33,057
n,
CD
CD
J
N
00
Table 7
CITY OF EDINA, MINNESOTA
Ratio of Net General Bonded Debt to Assessed
Value/Tax Capacity and Net Bonded Debt Per Capita
Last Ten Fiscal Years
(Unaudited - see accompanying auditors' report)
*Source: Metropolitan Council estimate
Notes: (a) Official population per 1991 census.
(b) Includes all long -term general obligation debt.
m
N
to
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
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
1998
47,113
85,259
70,260,000
589,371
69,670,629
81.72%
1,479
*Source: Metropolitan Council estimate
Notes: (a) Official population per 1991 census.
(b) Includes all long -term general obligation debt.
m
N
to
CITY OF EDINA, MINNESOTA
Computation of Legal Debt Margin
December 31, 1998
(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
$ 53,090,000
530,000
8.550.000
$ 70,260,000
62,170,000
Page 130
Table 8
$ 4,267,758,501
85,355,170
�•1 1II
Legal debt margin $ 77,265,170
Page 131
Table 9
CITY OF EDINA, MINNESOTA
Computation of Overlapping Debt
December 31, 1998
(Unaudited - see accompanying auditors' report)
Percentage
Amount
applicable
applicable
Net debt
to City of
to City of
Jurisdiction
outstanding
Edina
Edina
City of Edina
$ 61,180,000
100.00% $
61,180,000
Hennepin County
143,267,872
7.81%
11,189,221
ISD #273 (Edina)
43,736,794
97.87%
42,805,200
ISD #270 (Hopkins)
46,876,188
7.50%
3,515,714
ISD #271 (Bloomington)
18,766,325
0.01%
1,877
ISD #272 (Eden Prairie)
112,120,523
1.40%
1,569,687
ISD #280 (Richfield)
32,434,708
28.26%
9,166,048
ISD #283 (St. Louis Park)
12,033,074
0.01%
1,203
Metro Council
104,048,189
4.11%
4,276,381
Hennepin County Regional Parks
12,406,953
10.36%
1,285,360
$
134,990,691
Page 132
Table 10
CITY OF EDINA, MINNESOTA
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures
Last Ten Fiscal Years
(Unaudited - see accompanying auditors' report)
Notes: (a) Includes General, Special Revenue, and Debt Service Funds.
Ratio of total
debt service
Total
to total
Fiscal
debt
Total general
general
year
Principal
Interest
service
expenditures (a)
expenditures
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
22,035,991
33.28%
1995
2,495,000
5,378,815
7,873,815
23,630,853
33.32%
1996
1,400,000
4,881,475
6,281,475
24,000,082
26.17%
1997
2,120,000
4,502,948
6,622,948
23,128,537
28.64%
1998
2,224,724
4,099,809
6,324,533
25,390,000
24.91%
Notes: (a) Includes General, Special Revenue, and Debt Service Funds.
Table 11
CITY OF EDINA, MINNESOTA
Revenue Bond Coverage
Last Ten Fiscal Years
(Unaudited - see accompanying auditors' report)
Net
revenue
'Before interest costs.
v
d
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CA
Direct*
available
Gross
operating
for debt
Debt service requirements
Fiscal year
revenue
expenses
service
Principal
Interest
Total
Coverage
Utility Bond
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
1998
8,108,612
7,226,648
881,964
400,000
22,184
422,184
209
Recreational Facility Bonds
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
1998
5,042,394
4,270,042
772,352
4,240,000
372,390
4,612,390
17
'Before interest costs.
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CA
Fiscal
year
CITY OF EDINA, MINNESOTA
Property and Construction Values
Last Ten Fiscal years
(Unaudited - see accompanying auditors' report)
Commercial
construction
Number of
permits Value
Residential
construction
Number of
permits Value
Table 12
Property value`
Commercial Residential
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
1998
462
38,495,806
1,830
35,625,118
904,869,800
3,623,187,200
`Assessor's market.
v
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Page 135
Table 13
CITY OF EDINA, MINNESOTA
Principal Taxpayers
December 31, 1998
(Unaudited - see accompanying auditors' report)
1998 tax
Taxpayer
Type of Business
capacity
Southdale
Shopping center $
4,597,368
Pentagon Office Park
Office building
1,636,266
Gabberts and Galleria
Shopping center
1,427,983
Southdale Office Park
Office building
1,332,450
United Health Care Corporation
Office building
842,415
National Car
Office Building
828,674
Southdale Medical Building
Office building
717,640
Cedars of Edina
Apartments
646,236
Centennial Lakes Retail
Retail
546,109
Edinborough Plaza
Apartments
410,258
Target
Retail
391,475
Jerry's Center
Retail
360,724
Durham
Apartments
350,205
Edinborough Office East
Office building
338,478
York Plaza
Apartments
324,870
7373 France
Medical Office
322,494
Hawthorne Suites Hotel
Hotel
320,621
7600 France
Office building
310,986
7317 Cahill
Industrial
284,116
7300 Metro Blvd
Office building
282,986
Page 136
Table 14
CITY OF EDINA, MINNESOTA
Major Employers in the City
December 31, 1998
(Unaudited - see accompanying auditors' report)
Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic
Development, August, 1996
Approximate
Number
Employer
Product/Service
of Employees
Fairview Southdale Hospital
Health Care
2,400
Jerry's Enterprises Inc.
Groceries
2,000
Golden Valley Microwave Foods
Manufacturing
650
Health Risk Management Inc.
Pension, Health and Welfare Funds
552
Dayton's
Department Store
500
J.C. Penney
Department Store
400
Norwest Funding
Mortgage Bankers & Correspondents
358
Nash Finch Co.
Groceries
350
International Dairy Queen Inc.
Eating Places
300
Roach Organization Inc.
Computer & Computer Software Stores
140
Techpower Inc.
Help Supply Services
120
Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic
Development, August, 1996
Hennepin County
Mpls. -St. Paul MSA
State of Minnesota
CITY OF EDINA, MINNESOTA
Labor Force Data
December 31, 1998
(Unaudited - see accompanying auditors' report)
December 1998
Civilian
Unemployment
Labor Force
Rate
645,899
650,699
1.9%
1,677,667
2.0%
2,671,998
2.8%
Page 137
Table 15
December 1997
Civilian
Unemployment
Labor Force
Rate
645,899
3.2%
1,580,436
3.8
2,636,536
3.0
Source: Minnesota Department of Economic Security. 1998 data is preliminary.
CITY OF EDINA, MINNESOTA
Miscellaneous Statistics
December 31, 1998
(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
13984
Fire protection:
Number of stations 2
Number of employees (full time) 28
Police protection:
Number of stations 1
Number of employees (full time) 63
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 138
Table 16
(Continued)
Page 139
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
1998 (estimated June 1998)
47,113
Page 140
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, 1998
Uses of funds:
Land acquisition
0
872,539
Accounted
220,522
(522)
Installation of public
Original
Amended
for in
Current
Amount
utilities and
budget
budget
prior years
year
remaining
Sources of funds:
3,000,000
7,735,427
5,645,427
82,511
2,007,489
Bond proceeds
$ 2,200,000
5,280,000
5,251,998
0
28,002
Tax increments
0
5,280,000
2,200,000
0
3,080,000
received
0
31,748,489
13,789,416
1,293,633
16,665,440
Real estate sales'
800,000
170,782
170,782
0
0
State aid
0
418,871
418,871
0
0
Special assessments
0
1,321,096
728,505
0
592,591
Parking permits
0
210,721
210,721
0
0
Community develop-
0
44,000
30,429
0
13,571
ment
0
214,828
186,064
0
28,764
Interest on invested
funds
0
2,000,000
863,398
427,393
709,209
Other
0
43,661
73,881
26,433
(56,653)
Total sources of
funds
3,000,000
41,408,448
21,693,636
1,747,459
17,967,353
Uses of funds:
Land acquisition
0
872,539
652,539
220,522
(522)
Installation of public
utilities and
improvements
3,000,000
7,735,427
5,645,427
82,511
2,007,489
Bond payments
Principal
0
5,280,000
2,200,000
0
3,080,000
Interest
0
4,738,329
3,254,952
158,450
1,324,927
Administrative costs
0
1,500,000
1,025,717
87,817
386,466
Work orders
0
16,825
16,257
0
568
Contingencies
0
12,300
11,644
0
656
Interest
0
363,037
400,835
0
(37,798)
Miscellaneous
0
44,000
30,429
0
13,571
Total uses of funds
3,000,000
20,562,457
13,237,800
549,300
6,775,357
Funds remaining (or
deficient)
0
20,845,991
8,455,836
1,198,159
11,191,996
Cost to authority
*Real estate sales
Liquor store site $ 128,064
Union oil site 134,506
$ 262,570
Price paid by developer
105,002
65,780
170,782
Page 141
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, 1998
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
75,000,000
28,061,498
3,173,865
43,764,637
Real estate sales*
598,005
3,000,000
2,147,052
270,380
582,568
Community develop-
ment Block Grant
0
189,221
189,221
0
0
Interest on invested
funds
0
4,000,000
2,062,894
184,238
1,752,868
Other
0
50,000
25,931
0
24,069
Total sources of
funds
6,763,182
103,709,221
52,706,448
3,628,483
47,374,290
Uses of funds:
Land acquisition
6,682,998
12,200,000
11,290,268
270,380
639,352
Installation of public
utilities and
improvements
0
16,000,000
15,397,695
2,775
599,530
Site improvements or
preparation costs
2,885,484
2,000,000
468,098
0
1,531,902
Bond payments
Principal
0
21,470,000
8,715,000
1,475,000
11,280,000
Interest
0
17,000,000
16,917,225
628,560
(545,785)
Administrative costs
194,700
2,700,000
2,149,641
32,115
518,244
Transfers out
0
0
0
3,450,000
(3,450,000)
Interest reduction
0
1,850,000
0
0
1,850,000
Other
0
100,000
0
0
100,000
Parkland dedication fees
0
767,852
767,852
0
0
Total uses of funds
9,763,182
74,087,852
55,705,779
5,858,830
12,523,243
Funds remaining (or
deficient)
(3,000,000)
29,621,369
(2,999,331)
(2,230,347)
34,851,047
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
1,081,521
1,081,521
$
2,763,803
2,417,432
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, 1998
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 142
Table 19
0 (5,872,035) 1,322,863 478,940 (7,673,838)
Accounted
Original
Amended
for in
Current
Amount
budget
budget
prior years
year
remaining
4,500,000
8,400,000
4,471,603
0
3,928,397
0
10,531,072
5,570,382
759,329
4,201,361
0
0
145,894
80,431
(226,325)
0
0
28,987
37,312
(66,299)
4,500,000
18,931,072
10,216,866
877,072
7,837,134
0
3,000,000
2,784,785
0
215,215
4,310,000
5,210,000
3,239,180
35,527
1,935,293
0
8,400,000
950,000
150,000
7,300,000
0
7,140,000
1,229,638
156,150
5,754,212
190,000
1,053,107
690,400
56,455
306,252
4,500,000
24,803,107
8,894,003
398,132
15,510,972
0 (5,872,035) 1,322,863 478,940 (7,673,838)
Page 143
Table 20
CITY OF EDINA, MINNESOTA
Schedule of Sources and Uses of Public Funds
for Southeast Edina Redevelopment District -No. 1203, a Tax Increment Financing District
(Districts 1200, 1201, 1203, and 1204 are pooled)
(Unaudited - see accompanying auditors' report)
December 31, 1998
Uses of funds:
Land acquisition
13,900,000
24,000,000
Accounted
4,089,984
1,605,219
Site improvements or
Original
Amended
for in
Current
Amount
preparation costs
budget
budget
prior years
year
remaining
Sources of funds:
Bond proceeds
$ 41,400,000
41,400,000
31,761,677
0
9,638,323
Tax increments
38,000,000
38,000,000
19,317,277
2,184,063
16,498,660
received
80,000,000
70,000,000
8,209,085
1,386,895
60,404,020
Real estate sales'
5,000,000
11,500,000
5,585,272
4,248,084
1,666,644
Interest on invested
121,117,800
131,925,000
50,000,434
8,607,103
73,317,463
funds
0
4,000,000
2,122,878
33,595
1,843,527
Transfer in
0
0
0
3,450,000
(3,450,000)
Other
0
573,536
617,248
0
(43,712)
Total sources of
'Real estate sales
funds
126,400,000
127,473,536
48,296,160
9,118,574
70,058,802
Uses of funds:
Land acquisition
13,900,000
24,000,000
18,304,797
4,089,984
1,605,219
Site improvements or
preparation costs
26,677,000
24,500,000
10,027,658
1,850,979
12,621,363
Bond payments
Principal
41,400,000
41,400,000
1,050,000
414,724
39,935,276
Interest
38,000,000
38,000,000
19,317,277
2,184,063
16,498,660
Administrative costs
1,140,800
4,000,000
1,300,702
67,353
2,631,945
Other
0
25,000
0
0
25,000
Total uses of funds
121,117,800
131,925,000
50,000,434
8,607,103
73,317,463
Funds remaining (or
deficient)
5,282,200
(4,451,464)
(1,704,274)
511,471
(3,258,661)
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
Office building #2
1,280,702
1,280,702
Office building #3
1,341,533
1,341,533
Office building #4
1,625,849
1,625,849
$ 9,833,356
9,833,356
Page 144
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, 1998
Accounted
Original
Amended
for in
Current
Amount
budget
budget
prior years
year
remaining
Sources of funds:
Bond proceeds
$ 9,400,000
0
0
0
0
Tax increments
received
22,657,749
5,544,667
714,323
0
4,830,344
Interest on invested
funds
0
693,047
804,789
36,772
(148,514)
Other
0
0
0
0
0
Total sources of
funds
32,057,749
6,237,714
1,519,112
36,772
4,681,830
Uses of funds:
Land acquisition
50,000
0
0
0
0
Installation of public
utilities and
improvements
5,800,000
188,720
188,720
0
0
Transit equipment
450,000
0
0
0
0
Transit improvement
1,100,000
0
0
0
0
Capitalized interest
500,000
0
0
0
0
Debt service
22,657,749
0
0
0
0
Transfer out
0
1,329,561
254,858
0
1,074,703
Tax abatement
0
4,718,602
0
0
4,718,602
Administrative costs
500,000
831
831
252
(252)
Total uses of funds
31,057,749
6,237,714
444,409
252
5,793,053
Funds remaining (or
deficient)
1,000,000
0
1,074,703
36,520
(1,111,223)
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, 1998
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 145
Table 22
Accounted
Original Amended for in Current Amount
budget budget prior years year remaining
$ 1,911,000 1,911,000 0
2,177,855 2,177,855 426,322
0 0 0
0 0 0
4,088,855 4,088,855 426,322
529,400 529,400 0
0 1,911,000
170,487 1,581,046
20,053 (20,053)
0 0
190,540 3,471,993
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
15,900
5,603
574,497
4,088,855
4,088,855
105,368
5,603
3,977,884
0
0
320,954
184,937
(505,891)