Loading...
HomeMy WebLinkAbout1998 Comprehensive Annual Financial Report/ e � (ki Oi co . =888 W 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 w9ti� \ri, o e ,p o 9� '��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 lv9SN��lrl,, o e • ���bHPOMT6� 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 �Fn -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. r p (a Ick LLB 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 co m C; 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. v d co m C; 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 CD 8 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)