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HomeMy WebLinkAbout2000 Comprehensive Annual Financial Reporto e tj� � y 8 gee 8s CITY OF EDINA, MINNESOTA 2000 COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2000 CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report Year ended December 31, 2000 Department of Finance John Wallin— Treasurer and Finance Director Peggy Gibbs — Assistant Finance Director Paula Nelson— Accountant CITY OF EDINA, MINNESOTA TABLE OF CONTENTS PART I — INTRODUCTORY SECTION Page Elected and Appointed Officials .................................................................. ............................... 1 Lettersof Transmittal .................................................................................. ............................... 2 PART II — FINANCIAL SECTION Independent Auditors' Report ..................................................................... ............................... 9 General Purpose Financial Statements: Combined Balance Sheet -- All Fund Types and Account Groups ........ ............................... 11 Combined Statement of Revenues, Expenditures and Changes in Fund Balance — All Governmental Fund Types .................................. ............................... 13 Combined Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General and Special Revenue Fund Types.......... 15 Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types ................................. .............................17 Combined Statement of Cash Flows — All Proprietary Fund Types ...... ............................... 18 Notes to General Purpose Financial Statements ................................... ............................... 19 Combining and Individual Fund and Account Group Financial Statements: General Fund: BalanceSheet ...................................................................................... ............................... 45 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual ................................................. ............................... 46 Schedule of Revenues — Budget and Actual ...................................... ............................... 47 Schedule of Expenditures — Budget and Actual ................................. ............................... 48 Schedule of Central Services Expenditures — Budget and Actual .................... :............... 53 Special Revenue Funds: CombiningBalance Sheet ................................................................... ............................... 55 Combining Statement of Revenues, Expenditures and Changes in FundBalance .................................................................................... ............................... 56 Debt Service Funds: CombiningBalance Sheet ................................................................... ............................... 58 Combining Statement of Revenues, Expenditures and Changes in FundBalance .................................................................................... ............................... 59 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Combining and Individual Fund and Account Group Financial Statements (Continued): Capital Project Funds: CombiningBalance Sheet ................................................................... ............................... 61 Combining Statement of Revenues, Expenditures and Changes in FundBalance ( Deficit) ...................................................................... ............................... 62 Enterprise Funds: Combining Balance Sheet ................................................................... ............................... 64 Combining Statement of Revenues, Expenses and Changes in Retained Earnings ...... 66 Combining Statement of Cash Flows .................................................. ............................... 68 Utilities Fund: BalanceSheet ............................................................................... ............................... 70 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 71 Statementof Cash Flows .............................................................. ............................... 72 Liquor Fund: BalanceSheet ............................................................................... ............................... 73 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 74 Statementof Cash Flows .............................................................. ............................... 75 Schedule of Operating Revenue and Expenses by Location ....... ............................... 76 Swimming Pool Fund: BalanceSheet ............................................................................... ............................... 77 Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) ...... 78 Statementof Cash Flows .............................................................. ............................... 79 Golf Course Fund: BalanceSheet ............................................................................... ............................... 80 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 81 Statement of Cash Flows .............................................................. ............................... 82 Schedule of Operating Expenses .................................................. ............................... 83 Arena Fund: BalanceSheet ............................................................................... ............................... 84 Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) ...... 85 Statementof Cash Flows .............................................................. ............................... 86 Art Center Fund: BalanceSheet ............................................................................... ............................... 87 Statement of Revenues, Expenses and Changes in Retained Earnings .................... 88 Statement of Cash Flows .............................................................. ............................... 89 Edinborough Park/Centennial Lake Fund: BalanceSheet ............................................................................... ............................... 90 Statement of Revenues, Expenses and Changes in Retained Earnings ................... 91 Statement of Cash Flows .............................................................. ............................... 92 CITY OF EDINA, MINNESOTA Table of Contents, Continued Trust and Agency Funds: Page CombiningBalance Sheet ............................................................... ............................... 94 Deferred Compensation Expendable Trust Fund: BalanceSheet ............................................................ ............................... 95 Statement of Revenues, Expenses and Changes in Retained Earnings .................. 96 Agency Funds: Combining Statement of Changes in Assets and Liabilities ........ ............................... 97 General Fixed Assets Account Group: Schedule of General Fixed Assets ..................................................... ............................... 99 General Long-term Debt Account Group: Schedule of General Long -term Debt ..................... ............................... ............................101 Supplementary Information:. Exhibit Page Combined Schedule of Bonded Indebtedness . ........................Exhibit 1 .... ............................102 Schedule of Changes in Bonded Indebtedness .......................Exhibit 2 .... ............................104 Schedule of Bonds Payable .............................. ........................Exhibit 3 .... ............................105 Schedule of Debt Service Requirements ......... ........................Exhibit 4 .... ............................109 Assessed Valuation, Tax Levies and Mill Rates ......................Exhibit 5 .... ............................110 PART III — STATISTICAL SECTION General Governmental Expenditures by Function Last Ten Fiscal Years ............. ............................... General Governmental Revenues by Source Last Ten Fiscal Years ............. ............................... Property tax Levies and Collections — Last Ten FiscalYears ............................ ............................... Table Page Table 1 ..... ............................111 Table 2 .. ............................... 112 Table 3 .. ............................... 113 CITY OF EDINA, MINNESOTA Table of Contents, Continued Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property .......... ............................... Property Tax Rates — All Overlapping Governments Last Ten Fiscal Years ............................. ............................... Special Assessment Collections — Last Ten FiscalYears ............................................ ............................... Ratio of Net General Bonded Debt to Assessed Value/Tax Capacity and Net Bonded Debt per Capita — Last Ten Fiscal Years .............. ............................... Computation of Overlapping Debt - December 31, 2000......... Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures — Last Ten Fiscal Years ... ............................... Revenue Bond Coverage — Last Ten Fiscal Years ................. Property and Construction Values — Last Ten FiscalYears ........................................... ............................... Principal Taxpayers - December 31, 2000 .............................. Major Employers in the City ...................... ............................... LaborForce Data ...................................... ............................... Miscellaneous Statistics - December 31, 2000 ....................... Schedule of Sources and Uses of Public Funds for 50th & France -No. 1200, a Tax Increment Financing District ................................ ............................... Schedule of Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1201, a Tax Increment Financing District ................... Schedule of Sources and Uses of Public Funds for Grandview. Area Redevelopment District - No. 1202, a Tax Increment Financing District ................... Schedule of Sources and Uses of Public Funds for Southeast Edina Redevelopment District - No. 1203, a Tax Increment Financing District ................... Schedule of Sources and Uses of Public Funds for 70th Street and Cahill Road District -No. 1207, a Tax Increment Financing District .......................... Table 4 .. ............................... 114 Table 5 .. ............................... 115 Table 6 ..... ............................116 Table 7 .. ............................... 117 Table 8 ..... ............................118 Table 9 .. ............................... 119 Table 10 . ............................... 120 Table 11 .... ............................ 121 Table12 .... ............................ 122 Table 13 .... ............................123 Table 14 . ............................... 124 Table 15 . ............................... 125 Table 16 . ............................... 127 Table 17 . ............................... 128 Table 18 .... ............................129 Table 19 .... ............................130 Table 20 . ............................... 131 INTRODUCTORY SECTION CITY OF EDINA, MINNESOTA Elected and Appointed Officials December 31, 2000 Elected: Mayor — Dennis Maetzold Council: James Hovland Scot Housh Michael Kelly Linda Masica 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 Januarv` 2005 2003 2003 2005 2005 Page 2 City of Edina March 30, 2001 To the Honorable Mayor and Members of the City Council City of Edina, Minnesota: In accordance with State Statutes and local charter provision, I hereby transmit the annual financial report of the City of Edina, Minnesota as of December 31, 2000 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 (952) 927 -8861 4801 WEST 50TH STREET FAX (952) 826 -0390 EDINA, MINNESOTA 55424 -1394 TDD (952) 826 -0379 Page 3 The City of Edina, Minnesota concluded fiscal year 2000 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 March 30, 2001 To the Honorable Mayor, Members of the City Council, and City Manager City of Edina, Minnesota: Page 4 City of Edina The Comprehensive Annual Financial Report of the City of Edina (the City), for the fiscal year ended December 31, 2000, 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 (952) 927 -8861 4801 WEST 50TH STREET FAX (952) 826 -0390 EDINA, MINNESOTA 55424 -1394 TDD (952) 826 -0379 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 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 $35,617,256 in 2000, an increase of 9.1 percent over 1999. General property taxes produced 64.3 percent of general revenues compared to 65.1 percent last year. The amount of revenues from various sources and the increase (decrease) over last year are shown in the following table: Revenue Source Taxes Special assessments Franchise fee Licenses and permits Intergovern mental Charges for services Fines and forfeitures Investment income Interest on funds held with fiscal agent Sale and rental of property Total Percent of total $22,904,512 64.30% 1,159,876 3.26% 336,678 .95% 1,835,828 5.15% 1,880,680 5.28% 2,902,666 8.15% 967,421 2.72% 2,287,349 6.42% 88,788 .25% 1,156, 526 3.25% Increase (decrease) from 1999 $ 909,282 169,546 38,812 (299,713) (1,304,328) 832,190 172,711 1,872,235 88,788 872,441 Other revenues 96,932 .27% (381,856) Total revenues $35,617,256 100.00% $2,970,108 Current tax collections were 99.3 percent of the tax levy, up .34 percent from last year. Delinquent tax collections were up from last year. The ratio of total collections (current and delinquent) to the current tax levy was 99.4 percent, an increase of .17 percent from last year. I ntergovem mental revenues were 5.3% of general revenues compared to 9.4% in 1999. There was a $1 million sale of land in 2000. Investment income increased compared with 1999 due to unrealized losses in 1999 compared to unrealized gains in 2000. Page 6 Expenditures for general governmental purposes within the General, Special Revenue, Debt Service and Capital Project Funds totaled $34,238,524 an increase of 12.1 percent over 1999. 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 Total $2,635,357 8,846,360 3,672,057 2,150,588 346,099 1,576,968 8,352,494 3,550,000 3,108,601 $34,238,524 Debt Administration 100.0% $ 3,700,435 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 2000: Gross bonded debt outstanding, January 1, 2000 Add bonds issued in fiscal year 2000 Deduct bonds redeemed in fiscal year 2000 Gross bonded debt outstanding, December 31, 2000 Deduct sinking fund assets, December 31, 2000 Net bonded debt, December 31, 2000 .8126 $ 1.434 $73,005,000 22,005,000 6,835,000 88;175,000 (20,144,460) $68,030,540 The City's bonds were upgraded to an Aaa rating as determined by Moody's Investors Service, and an AA+ rating from Standard & Poors in August, 2000. At December 31, 2000 the City had $66,670,000 of Tax Increment Bonds outstanding, excluding General Obligation, Improvement and Revenue Bonds. $16,550,464 was available in the General Debt Service Fund for payment of these obligations, resulting in $50,119,536 net general debt at December 31, 2000 Increase Percent (decrease) of total from 1999 7.7% $ 107,810 25.8% 329,687 10.7% (72,067) 6.3% (90,142) 1.0% (20,233) 4.6% 571,187 24.4% 2,752,858 10.4% 275,000 9.1% (153,665) 100.0% $ 3,700,435 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 2000: Gross bonded debt outstanding, January 1, 2000 Add bonds issued in fiscal year 2000 Deduct bonds redeemed in fiscal year 2000 Gross bonded debt outstanding, December 31, 2000 Deduct sinking fund assets, December 31, 2000 Net bonded debt, December 31, 2000 .8126 $ 1.434 $73,005,000 22,005,000 6,835,000 88;175,000 (20,144,460) $68,030,540 The City's bonds were upgraded to an Aaa rating as determined by Moody's Investors Service, and an AA+ rating from Standard & Poors in August, 2000. At December 31, 2000 the City had $66,670,000 of Tax Increment Bonds outstanding, excluding General Obligation, Improvement and Revenue Bonds. $16,550,464 was available in the General Debt Service Fund for payment of these obligations, resulting in $50,119,536 net general debt at December 31, 2000 Page 7 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 2000, the City earned $2,906,622 in investment income. The following is a list of the City's cash and investments by classification as of December 31, 2000: Cash Cash deficit Cash with plan administrator Cash with fiscal agents Certificates of deposit Commercial paper Banker's acceptance Government securities Money market investments Capital Project Funds $2,781,386 (2,446,861) 3,999,778 19,013,091 1,052,002 21,823,657 883,009 15,534,373 5,813,116 $68,453,551 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. 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, 2000, the general fixed assets of the City. amounted to $90,961,462. 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 2000 and 1999 is as follows: Utilities Liquor Swimming pool Golf course Arena Art Center Edinborough Park/Centennial Lake Income (loss) 2000 1999 $1,561,307 $1,767,425 961,133 945,546 47,346 56,202 259,357 544,306 (289,177) (183,441) (263,526) (153,006) (327,930) (356,487) $1,948,510 $2,620,545. Operating transfers to /from other funds for various purposes were $220,000 to other enterprise funds, $108,000 to the general fund and $919,000 to the revolving fund in 2000 and $715,000, $23,000 and $0 in 1999, 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 LLP has been included in this Comprehensive Annual Financial Report for 2000. Acknowledgments The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Finance Department. We would like to express our appreciation to all members of the Department who assisted and contributed to its preparation. We should also like to thank the Mayor and City Council members for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, ohn Wallin, CPA Treasurer and Finance Director Pegg�bs 'u& Assistant Finance Director FINANCIAL SECTION FK,YTPmM, kG 4200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402 Independent Auditors' Report 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, 2000, as listed in the accompanying table of contents. These general - purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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, 2000, and the results of its operations and cash flows of its proprietary fund types for the year then ended, in conformity with accounting principles generally accepted in the United States of America. 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 in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general - purpose financial statements of the City. 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. 0 ®.,KPMG LLP. KPMG LLP, a U.S. limited liability partnership, is a member of KPMG International, a Swiss association. D, The data designated as the statistical section and supplementary information listed 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. March 30, 2001 K`>MC, LLB 10 Page 11 CITY OF EDINA, MINNESOTA Combined Balance Sheet - All Fund Types and Account Groups December 31, 2000 (with comparative totals for December 31, 1999) Assets and Other Debits Cash (note 2) Petty cash and change funds (note 2) Investments (note 2) Cash and investments with plan administrators (notes 2 and 7) Cash and investments with fiscal agents (note 2) Receivables: Accounts Customers Accrued interest Special assessments Taxes Due from other funds (note 9) Due from other governments Inventory Prepaid Expenses Advance to other funds Fixed Assets (note 4) Discount on bonds Amount available in debt service fund Amount to be provided for retirement of long -term debt Amount to be provided for compensated absences Total assets and other debits Liabilities, Fund Equity and Other Credits Liabilities: Accounts payable Salaries payable Contracts payable Accrued interest payable Due to other funds (note 9) Due to other governments Compensated absences payable Deposits payable Taxes payable Deferred revenue (note 3) Advance from other funds Obligation under capital lease (note 14) Bonds payable (note 5) Total liabilities Fund equity and other credits: Investment in general fixed assets (note 4) Contributed Capital (note 16) 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 13) Total liabilities, fund equity and other credits See accompanying notes to financial statements Governmental fund hoes Special Debt Capital General Revenue Service Proiects $ 0 0 75,751 104,217 2,810 0 0 0 13,802,354 1,049,987 0 25,673,668 0 0 0 0 0 0 15,726,593 0 262,118 8 0 26,653 0 0 0 0 29,757 12,869 0 316,480 0 0 2,389,974 985,109 0 0 0 0 819,164 111,766 901,532 0 228,156 1,650 8,764 153,333 0 0 0 0 141,939 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 15.286.298 1.176.280 19.102.614 465,951 22,419 0 614,621 422,586 1,207 0 2,257 0 0 0 207,499 0 0 0 0 384,523 1,650 0 2,965,001 89,755 3,087 96,704 12,587 26,384 0 0 0 0 0 0 0 0 0 0 0 0 0 2,293,442 985,109 0 0 0 0 0 0 0 0 0 0 0 0 1,389,199 28,363 2,390,146 4,787,074 141,939 0 16,712,468 17,527 13,755,160 0 0 8,731,959 0 1,147,917 0 13,722,900 13,897,099 1,147,917 16,712,468 22,472,386 $ 15,286,298 1,176,280 19,102,614 27,259,460 Page 12 Proprietary Fiduciary fund type fund type Account groups General General Totals Trust & Fixed Long -term (memorandum only) Enterprise Agency Asset Debt 2000 1999 0 140,432 0 0 320,400 693,337 11,315 0 0 0 14,125 13,575 4,580,148 0 0 0 45,106,157 37,785,030 0 3,999,778 0 0 3,999,778 3,913,274 3,286,498 0 0 0 19,013,091 3,306,034 114,515 0 0 0 403,294 381,667 2,170,225 0 0 0 2,170,225 2,010,560 106,986 0 0 0 466,092 323,203 76,457 0 0 0 3,451,540 3,167,347 0 0 0 0 0 7,647 1,560,390 0 0 0 3,392,852 6,622,279 4,527 0 0 0 396,430 1,567,183 1,165,534 0 0 0 1,165,534 981,068 0 0 0 0 141,939 116,901 0 0 0 0 0 145,012 41,353,939 0 90,961,462 0 132,315,401 125,502,870 79,454 0 0 0 79,454 97,273 0 0 0 16,712,468 16,712,468 407,283 0 0 0 58,103,542 58,103,542 58,512,616 0 0 0 2,220,886 2,220,886 612,972 54.509.988 4.140.210 90.961.462 77.036.896 289.473.208 246.167.131 725,828 0 0 0 1,828,819 1,475,418 120,881 0 0 0 546,931 472,925 94,563 0 0 0 302,062 29,078 327,363 0 0 0 327,363 401,692 0 41,678 0 0 3,392,852 6,622,279 355,681 98,754 0 0 656,568 567,286 566,094 0 0 2,220,886 2,813,364 765,979 50,593 0 0 0 50,593 14,354 0 0 0 0 0 80,593 5,040 0 0 0 3,283,591 2,958,573 0 0 0 0 0 145,012 210,000 0 0 426,010 636,010 744,898 13,785,000 0 0 74,390,000 88,175,000 73,005,000 16,241,043 140,432 0 77,036,896 102,013,153 87,283,087 0 0 90,961,462 0 90,961,462 85,126,833 5,725,001 0 0 0 5,725,001 6,177,967 1,607,120 0 0 0 1,607,120 2,042,755 30,936,824 0 0 0 30,936,824 28,910,713 0 3,999,778 0 0 20,871,712 6,806,382 0 0 0 0 22,487,119 7,324,261 0 0 0 0 14,870,817 22,495,133 38,268,945 3,999,778 90,961,462 0 187,460,055 158,884,044 54,509,988 4,140,210 90,961,462 77,036,896 289,473,208 246,167,131 Page 13 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenditures and Changes in Fund Balance - AII Governmental Fund Types Year ended December 31, 2000 (with comparative totals for year ended December 31, 1999) Governmental fund types Special Debt Capital General Revenue Service Projects Revenues: Taxes (note 3) $ 13,575,850 0 738,349 8,590,313 Special assessments 0 0 721,871 438,005 Franchise fees 0 336,678 0 0 Licenses and permits 1,835,628 0 0 0 Intergovernmental 1,584,192 42,231 0 254,257 Charges for services 2,024,518 0 0 878,148 Fines and forfeitures 967,421 0 0 0 Investment Income 430,577 117,016 0 1,739,756 Interest on funds held with fiscal agent 0 0 88,788 0 Sales and rental of property 171,585 0 0 984,941 Other revenues 9,803 3,617 0 83,512 Total revenues 20,599,774 499,542 1,549,008 12,968,932 Expenditures: Current General government 2,635,357 0 0 0 Public safety 8,846,360 0 0 0 Public works 3,672,057 0 0 0 Parks 2,150,588 0 0 0 Unallocated general 346,099 0 0 0 Other 73,920 285,770 1,600 1,215,678 Capital outlay: General government 99,898 0 0 0 Public safety 375,731 0 0 0 Public works 555,332 0 0 0 Parks 104,921 0 0 0 Infrastructure 0 0 0 7,207,966 Other 0 8,646 0 0 Debt Service: Bond principal 0 0 6,050,000 0 Interest and fiscal charges 0 0 3,108,601 0 Total expenditures 18,860,263 294,416 9,160,201 8,423,644 Excess (deficiency) of revenues over expenditures 1,739,511 205,126 (7,611,193) 4,545,288 Other financing sources (uses): Operating transfers in (out): Operating transfers in (out )-General Fund 0 0 0 279,065 Operating transfers in (out)-Swimming Pool Fund 0 0 0 0 Operating transfers in (out) - Capital Projects Fund (279,065) 0 0 0 Operating transfers in (out)- Edinborough Park Fund (108,000) 0 0 0 Operating transfers in (out )-HRA 0 0 5,778,574 0 Operating transfers in (out)-General Debt Service Fund 0 0 0 (5,778,574) Operating transfers in (out)-Liquor Fund 0 0 0 919,000 Parkland dedication 85,520 0 0 0 Proceeds from sale of tax increment bonds 0 0 18,137,804 3,604,312 Total other financing sources (uses) (301,545) 0 23,916,378 (976,197) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses 1,437,966 205,126 16,305,185 3,569,091 Fund balance - January 1, as restated (note 10) 12,459,133 942,791 407,283 18,903,295 Fund balance - December 31 $ 13,897,099 1,147,917 16,712,468 22,472,386 See accompanying notes to financial statements Page 14 Totals Fiduciary Type (memorandum only) Expendable Trust 2000 1999 0 22,904,512 21,995,230 0 1,159,876 990,330 0 336,678 297,866 0 1,835,828 2,135,541 0 1,880,680 3,185,008 0 2,902,666 2,070,476 0 967,421 794,710 (116,184) 2,171,165 994,167 0 88,788 0 0 1,156,526 284,085 311,157 408,089 770,246 194,973 35,812,229 33,517,659 0 2,635,357 2,527,547 0 8,846,360 8,516,673 0 3,672,057 3,744,124 0 2,150,588 2,240,730 0 346,099 366,332 108,469 1,685,437 1,058,866 0 99,898 15,143 0 375,731 441,034 0 555,332 418,434 0 104,921 125,328 0 7,207,966 4,542,885 0 8,646 56,812 0 6,050,000 3,275,000 0 3,108,601 3,262,266 108,469 36,846,993 30,591,174 86,504 (1,034,764) 2,926,485 0 279,065 153,460 0 0 183,000 0 (279,065) (153,460) 0 (108,000) (206,000) 0 5,778,574 5,646,647 0 (5,778,574) (5,646,647) 0 919,000 0 0 85,520 264,424 0 21,742,116 0 0 22,638,636 241,424 86,504 21,603,872 3,167,909 3,913,274 36,625,776 33,457,867 3,999,778 58,229,648 36,625,776 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, 2000 (with comparative totals for year ended December 31, 1999) Fund balance - January 1 12,459,133 Fund balance - December 31 13.897.099 See accompanying notes to financial statements General Variance favorable Budget Actual (unfavorable) Revenues: Taxes (note 3) $ 13,505,158 13,575,850 70,692 Licenses and permits 1,399,500 1,835,828 436,328 Intergovernmental 1,615,000 1,584,192 (30,808) Charges for services 1,683,096 2,024,518 341,422 Fines and forfeitures 479,000 967,421 488,421 Investment income 30,400 430,577 400,177 Sales and rental of property 67,000 171,585 104,585 Other revenues 26,000 9,803 (16,197) Total revenues 18,805,154 20,599,774 1,794,620 Expenditures: Current: General government 2,709,531 2,635,357 74,174 Public safety 8,928,624 8,846,360 82,264 Public works 3,914,625 3,672,057 242,568 Parks 2,240,429 2,150,588 89,841 Unallocated general 337,804 346,099 (8,295) Other 0 73,920 (73,920) Capital outlay: General government 32,045 99,898 (67,853) Public safety 498,451 375,731 122,720 Public works 506,000 555,332 (49,332) Parks 100,645 104,921 (4,276) Total expenditures 19,268,154 18,860,263 407,891 Excess (deficiency) of revenues over expenditures (463,000) 1,739,511 2,202,511 Other financing sources (uses): Operating transfers in 463,000 0 (463,000) Operating transfers out 0 (387,065) (387,065) Parkland dedication 0 85,520 85,520 Total other financing sources (uses) 463,000 (301,545) (764,545) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses $ 0 1,437,966 1,437,966 Fund balance - January 1 12,459,133 Fund balance - December 31 13.897.099 See accompanying notes to financial statements Page 16 Totals (memorandum only) Special Revenue 2000 1999 Variance Variance favorable favorable Budget Actual (unfavorable) Budget Actual (unfavorable) Actual 0 0 0 13,505,158 13,575,850 70,692 13,187,547 0 0 0 1,399,500 1,835,828 436,328 2,135,541 181,261 42,231 (139,030) 1,796,261 1,626,423 (169,838) 1,750,038 0 0 0 1,683,096 2,024,518 341,422 1,866,475 0 0 0 479,000 967,421 488,421 794,710 0 0 0 30,400 430,577 400,177 (267,839) 0 0 0 67,000 171,585 104,585 280,304 0 0 0 26,000 9,803 (16,197) . 9,899 181,261 42,231 (139,030) 18,986,415 20,642,005 1,655,590 19,756,675 0 0 0 2,709,531 2,635,357 74,174 2,527,547 0 0 0 8,928,624 8,846,360 82,264 8,516,673 0 0 0 3,914,625 3,672,057 242,568 3,744,124 0 0 0 2,240,429 2,150,588 89,841 2,240,730 0 0 0 337,804 346,099 (8,295) 366,332 181,261 42,231 139,030 181,261 116,151 65,110 (89,430) 0 0 0 32,045 99,898 (67,853) 15,143 0 0 0 498,451 375,731 122,720 441,034 0 0 0 506,000 555,332 (49,332) 418,434 0 0 0 100,645 104,921 (4,276) 125,328 181,261 42,231 139,030 19,449,415 18,902,494 546,921 18,305,915 0 0 0 (463,000) 1,739,511 2,202,511 1,450,760 0 0 0 463,000 0 (463,000) 183,000 0 0 0 0 (387,065) (387,065) (359,460) 0 0 0 0 85,520 85,520 264,424 0 0 0 463,000 (301,545) (764,545) 87,964 0 0 0 0 1,437,966 1,437,966 1,538,724 0 12,459,133 10,920,409 0 13,897.099 12,459.133 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings — All Proprietary Fund Types Year ended December 31, 2000 (with comparative totals for year ended December 31, 1999) Operating revenues: Charges for sales and services: Sales - Liquor Sales - Retail Sales - Utility Sales - Concessions Memberships Admissions Building rental Rental of equipment Greens fees Otherfees Total operating revenues Operating expenses: Cost of sales and services Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income Nonoperating revenues (expenses): Investment income Donations Miscellaneous revenue (expense) Interest and fiscal charges Interest on capital lease Gain (loss) on disposal of capital assets Amortization of bond discount Total nonoperating expenses Income before operating transfers Operating transfers in (out): General fund Art center fund Liquor store fund Golf Course fund Arena fund Revolving fund Total operating transfers, net Net income Add depreciation on contributed assets Increase in retained earnings Retained earnings - January 1 Retained earnings - December 31 See accompanying notes to financial statements Totals 2000 8,989,480 412,473 8,639,374 396,353 583,979 562,707 1,190,171 399,049 2,156,438 1,535,683 24,865,707 7,174,884 4,645,640 6,083,352 1,196,540 1,364,501 2,132,071 22,596,988 2,268,719 619,273 21,352 655 (681,487) (13,111) (249,072) (17,819) (320,209) 1,948,510 108,000 (139,000) 220,000 0 (81,000) (919,000) (811,000) Page 17 1999 8,423,812 376,148 8,378,216 391,037 520,848 581,044 1,129,746 377,198 2,046,256 1,332,433 23,556,738 6,704,254 4,147,974 5,536,401 1,033,585 1,293,228 2,103,687 20,819,129 2,737,609 408,055 17,283 67,293 (605,479) (15,511) 27,636 (16,341) (117,064) 2,620,545 23,000 (155,000) 680,000 35,000 (560,000) 0 23,000 1,137,510 2,643,545 452,966 448,134 1,590,476 3,091,679 30,953,468 27,861,789 $ 32,543,944 30,953,468 Page 18 CITY OF EDINA, MINNESOTA 21,352 35,189 Combined Statement of Cash Flows - All Proprietary Fund Types 145,012 Combining Statement of Cash Flows Decrease on advances from other funds (145,012) Year Ended December 31, 2000 Operating transfer in (out )-General Fund 108,000 (with comparative totals for year ended December 31, 1999) (139,000) (155,000) Totals Cash flows from operating activities: 2000 1999 Operating income $ 2,268,719 2,776,274 Adjustments to reconcile operating income (560,000) Operating transfer (out) - Revolving fund to net cash provided by operating activities 0 Net cash provided used for noncapital financing activities Depreciation expense 2,132,071 2,103,687 Changes in assets and liabilities: (Increase) decrease in accounts receivable 51,701 (72,651) (Increase) decrease in customer accounts receivable (159,665) 72,776 (Increase) decrease in special assessments receivable 28,755 (58,820) (Increase) decrease in due from other funds 3,249,321 (4,052,705) (Increase) decrease in due from other governments 685 (4,554) (Increase) decrease in inventory (184,466) 1,181 Increase (decrease) in accounts payable 93,803 (22,390) Increase in salaries payable 16,622 17,877 Increase (decrease) in contracts payable 81,393 (63,395) Increase (decrease) in accrued interest payable (74,329) 163,103 Decrease in due to other funds (200,000) (50,000) Increase (decrease) in due to other governments 200,361 (211,516) Increase in compensated absences payable 421,628 11,513 Increase in deposits payable 38,239 5,502 Miscellaneous revenue 655 23,921 Total adjustments 5,696,774 (2,136,471) Net cash provided by operating activities 7,965,493 639,803 Cash flows from noncapital financing activities: Donations 21,352 35,189 Increase in advances to other funds 145,012 808,417 Decrease on advances from other funds (145,012) (808,417) Operating transfer in (out )-General Fund 108,000 23,000 Operating transfer (out) -Art Center (139,000) (155,000) Operating transfer in- Liquor Store Fund 220,000 680,000 Operating transfer in -Golf Course Fund 0 35,000 Operating transfer (out) -Arena (81,000) (560,000) Operating transfer (out) - Revolving fund (919,000) 0 Net cash provided used for noncapital financing activities (789,648) 58,189 Cash flows from capital and related financing activities: Net acquisition of capital assets (3,109,973) (1,398,226) Gain (loss) on disposal of capital assets (249,072) 27,636 Proceeds from revenue bonds 0 6,870,000 Principal paid on revenue bonds (785,000) (850,000) Increase on bond discount 0 (54,368) Principal paid on capital lease (50,000) (50,000) Interest received from fiscal agent 137,041 68,275 Interest paid on capital lease (13,111) (15,511) Interest paid on bonds (681,487) (605,479) Net cash (used) provided for capital and related financing activities (4,751,602) 3,992,327 Cash flows from investing activities Purchase of investments (2,820,478) (1,759,670) Decrease in interest receivable (106,986) 48,674 Investment income 482,232 326,581 Net cash used by investing activities (2,445,232) (1,384,415) Net increase (decrease) in cash and cash equivalents (20,989) 3,305,904 Cash and equivalents, beginning of year 3,318,802 12,898 Cash and equivalents, end of year $ 3,297,813 3,318,802 Supplemental disclosure of noncash noncapital financing activity: Contribution of fixed assets 0 8,181 Total noncash noncapital financing activity $ 0 8,181 See accompanying notes to financial statements Page 19 CITY OF EDINA, MINNESOTA Notes to General Purpose Financial Statements December 31, 2000 (1) Summary of Significant Accounting Policies The City operates under the 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 accounting principles generally accepted in the United States of America 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 accounting principles generally accepted in the United States of America, 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 accounting principles generally accepted in the United States of America, 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. No separate financial statements are available for the HRA. 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 - where the intent of the governing body is that the costs (expenses, including (Continued) Page 21 CITY OF EDINA, MINNESOTA 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. The expendable trust fund is accounted for in essentially the same manner as the governmental fund types, using the same measurement focus and basis of accounting. Expendable trust funds account for assets where both the principal and interest may be spent. 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 funds. The Long -Term Debt Account Group is used to account for general long -term debt and certain other liabilities that are not specific liabilities of proprietary funds. C. Measurement Focus All Governmental Funds 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. (Continued) Page 22 CITY OF EDINA, MINNESOTA Long -term liabilities expected to be financed from governmental funds are accounted for in the General Long -term Debt Account Group, not in the Governmental Funds. The exception to this general rule is for revenue bonds, which are accounted for in Enterprise Funds. The two account groups are not "funds." They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. 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 (Continued) Page 23 CITY OF EDINA, MINNESOTA are determined to be susceptible to accrual include property taxes, special 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 equity. 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: 1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted by the passage of a resolution by the City Council. 4. Formal budgetary integration is employed as a management control device during the year. 5. Budgets for the General Fund and the Community Development Block Grant Fund are adopted on a basis consistent with generally accepted accounting principles (GAAP). (Continued) 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. F. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at year -end represent the estimated amount of the expenditures ultimately to result if unperformed contracts in process at year -end are completed. Encumbrances outstanding at year -end do not constitute expenditures . or liabilities, and therefore, are presented in the financial statements as reservations of fund balances. Encumbrances are recorded in the Construction Fund which is part of the Capital Projects Fund. G. Cash Cash balances from all funds are pooled together and invested to the maximum extent at favorable rates. This also allows certain funds to generate a temporary cash overdraft. Interest earned is allocated as determined by the Investment Advisory Committee. H. Investments The City's investments, including deferred compensation investments and investments with fiscal agents, are stated at fair value, based on quoted market prices. I. Statement of Cash Flows For purposes of the statement of cash flows, the City's Enterprise Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. J. Interfund Receivables /Payables Transactions between funds that are representative of lending /borrowing (Continued) Page 25 CITY OF EDINA, MINNESOTA 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. 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 expenditures when consumed rather than when purchased. L. Compensated Absences It is the City's policy to permit employees to accumulate eamed but unused vacation and sick pay benefits. Sick leave is payable when used or upon termination of employment as a lump sum payment equal to 50% of their balance up to 960 hours. Employees hired before January 1, 2000 elected to choose from the above sick leave policy or six weeks severance after 20 years of service. Vacation pay is payable when used or upon termination of employment. Vacation and sick 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, 2000 reported in the Governmental Funds, Proprietary Funds and General Long -term Debt Account Group was $26,384, $566,094, $2,220,886 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 accounting principles generally accepted in the United States of America. 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 2000 amounts were reclassified to conform to the 1999 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. Q. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates. (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, 2000 the City had deposits with a carrying value of $334,525, of which $4,200 was insufficiently 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; (Continued) Page 27 CITY OF EDINA, MINNESOTA (c) General obligations in the State of Minnesota or any of its municipalities; (d) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; (e) Commercial paper issued by United States corporations or their Canadian Subsidiaries, of the highest quality, and maturing in 270 days or less; (f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies or their subsidiaries; (g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers; and (h) Futures contracts sold under authority of Minnesota Statutes 471.56, subdivision 5. The City's 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, 2000 were as follows: $ 12,513,222 32,592,937 45,106,157 Cash and investments with fiscal agents 19,013,091 Cash and investments with plan administrators 3,999,778 Total investments $ 68,119,026 (Continued) Credit Risk Category Category Category Fair 1 2 Value Certificates of deposit $ 1,052,002 0 1,052,002 Commercial paper 6,978,000 14,845,657 21,823,657 Banker's acceptance 0 883,009 883,009 Money Market investments 3,495 5,809,621 5,813,116 Government securities: United States Treasury Notes 711,152 2,229,682 2,940,834 Federal National Mortgage Association 2,298,085 3,440,462 5,738,547 Government National Mortgage Association 0 2,147 2,147 Federal Home Loan Mortgage Corporation 1,153,838 3,147,638 4,301,476 Federal Home Loan Bank 0 1,460,487 1,460,487 SBA Pool 316,650 774,232 1,090,882 $ 12,513,222 32,592,937 45,106,157 Cash and investments with fiscal agents 19,013,091 Cash and investments with plan administrators 3,999,778 Total investments $ 68,119,026 (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 $498,435 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. Deposits at December 31, 2000 were as follows: Checking accounts Cash on hand Cash with trustee (3) Property Taxes Carrying Bank Amount balance $ 179,968 1,193,409 14,125 0 140,432 0 $ 334,525 1,193,409 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. (Continued) CITY OF EDINA, MINNESOTA (4) Fixed Assets Page 29 A summary of changes in general fixed assets during 2000 is as follows: Balance Balance January 1 Additions Deletions Deoember 31 Land $22,910,332 0 4,512 22,905,820 Land imprwerrents 12,933,485 0 5,784 12,927,701 Buildings 20,637,734 116,164 69,372 20,684,526 Funiiture &fixtures 1,343,762 159,317 347,823 1,155,256 Vehicles 4,417,848 791,856 395,695 4,814,009 Sides Aks 310,995 0 0 310,995 Leasehold improvements 190,330 0 1,785 188,545 Miscellaneous equipment 320 ,507 22,827 155,525 187,809 Park & playground equipment 903,293 81,228 119,048 865,473 Fighweyeguipment 2,197,662 125,862 162,032 2,161,492 Police equipment 721,821 28,929 149,105 601,645 Fire equipment 1,118,955 22,859 246,944 894,870 Bection equipment 138,114 3,913 96,514 45,513 Engineering Equipment 97,308 0 38,276 59,032 Traffic signals 153,570 0 0 153,570 Tools 5,812 0 0 5,812 Parks 15,979,022 314,060 0 16,293,082 Canstruction in progress 746,282 5,960,030 0 6,706,312 Total $85,126,832 7,627,045 1,792,415 90,961,462 A summary of proprietary fund fixed assets at December 31,2000 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 4,612,131 878,484 12,506,744 12,956,228 13,455,499 16,222,767 695,577 4,339,639 513,314 468,580 2,975,489 70,713,417 (29,359,478) $41,353,939 (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, 2000: tax increment bonds, general obligation bonds, improvement bonds and revenue bonds. The first type of bond is payable solely from tax increment monies with any deficiency to be provided for by general property taxes. The second type is payable solely from general property taxes. The third and fourth types are payable primarily from special assessments and enterprise revenue, respectively, with any deficiency to be provided for by general property taxes. The bonded debt outstanding is summarized as follows: Changes in long -term debt during the year were as follows: Balance Balance January 1, Issued/ December 31, Maturities Interest rates 2000 Tax Increment Bonds 2001-2013 4.50 - 6.45 $66,670,000 General Obligation Bonds 2001-2017 4.40 - 5.75 7,550,000 Improvement Bonds 2001-2001 5.00 - 5.20 170,000 Revenue Bonds 2001-2013 3.20 - 6.05 13,785,000 Total 73,005,000 22,005,000 $88,175,000 Changes in long -term debt during the year were as follows: Compensated absences Balance December 31, 2000 66,670,000 7,550,000 170,000 13,785,000 88,175,000 payable 612,973 1,607,913 0 2,220,886 Obligation under capital lease $484,898 0 58,888 426,010 The City had the following revenue bonds outstanding at December 31, 2000: Recreation Facility Bonds, Series 1992A Recreation Refunding Bonds, Series 1992C Utility Revenue Bonds, Series 1999A Recreation Refunding Bonds, Series 1999B $3,520,000 3,730,000 3,265,000 3.270.000 $13,785,000 (Continued) Balance January 1, Issued/ Redeemed/ 2000 Increases decreases Tax Increment Bonds $50,260,000 22,005,000 5,595,000 General Obligation Bonds 7,825,000 0 275,000 Improvement Bonds 350,000 0 180,000 Revenue Bonds 14,570,000 0 785,000 Total bonds 73,005,000 22,005,000 6,835,000 Compensated absences Balance December 31, 2000 66,670,000 7,550,000 170,000 13,785,000 88,175,000 payable 612,973 1,607,913 0 2,220,886 Obligation under capital lease $484,898 0 58,888 426,010 The City had the following revenue bonds outstanding at December 31, 2000: Recreation Facility Bonds, Series 1992A Recreation Refunding Bonds, Series 1992C Utility Revenue Bonds, Series 1999A Recreation Refunding Bonds, Series 1999B $3,520,000 3,730,000 3,265,000 3.270.000 $13,785,000 (Continued) Page 31 CITY OF EDINA, MINNESOTA 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. The annual requirements to amortize all debt outstanding as of December 31, 2000, including interest payments of $26,689,491 are as follows: Year ending Tax General December 31 Increment Obligation Improvement Revenue Total 2001 $ 6,475,971 698,888 174,420 1,444,443 8,793,722 2002 8,940,195 685,163 0 1,481,638 11,106,996 2003 12,658,406 695,388 0 1,700,673 15,054,467 2004 8,842,601 679,625 0 1,741,248 11,263,474 2005 8,960,765 687,913 0 1,751,720 11,400,398 2006 -2018 39,058,088 8,173,256 0 10,014,094. 57,245,438 $ 84,936,026 11,620,233 174,420 18,133,816 114,864,495 During 2000, the City issued $2,620,000 General Obligation Tax Increment Bonds, Series 2000A and $3,565,000 Taxable General Obligation Bonds, Series 2000B to finance the construction of various public improvements and environmental remediation costs within the Grandview Tax Increment Financing District in the City. During 2000, the City issued $15,820,000 General Obligation Tax Increment Refunding Bonds, Series 2000C to replace the General Obligation Tax Increment Refunding Bonds, Series 1992B. These will be refunded by means of "crossover' refunding in 2001. The cumulative savings will be $1,000,307, and the net present value of savings is $817,042. (Continued) CITY OF EDINA, MINNESOTA Legal Debt Margin Page 32 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, 2000, the legal debt margin was $89,684,600 calculated as follows: Market value Debt limit - 2% of market value Amount of general obligation $ 88,175,000 debt Less: Tax increment bonds $ 66,670,000 Improvement bonds 170,000 Revenue bonds 13,785,000 Total deductions 80,625,000 Total amount of debt applicable to debt limit Legal debt margin $ 4,861,730,000 97,234,600 7,550,000 $ 89,684,600 (Continued) CITY OF EDINA, MINNESOTA Long -term Debt - Other Page 33 The City is the administering authority for the following tax increment finance districts. Tax capacity values are for taxes payable in 2000. 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 $ 173,521 Current tax capacity value 1,409,957 Captured tax capacity value: Retained by authority 1,236,436 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, 2000 $ 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 $ 150,717 Current tax capacity value 3,014,363 Captured tax capacity value: Retained by authority 2,863,646 Shared with other taxing districts 0 General obligation tax increment bonds issued 22,110,000 Total loans incurred 0 Amounts redeemed 12,785,000 Outstanding bonds and loans at December 31, 2000 $ 9,325,000 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, 2000 $ 291,009 889,061 598,052 0 8,235,000 0 1,450,000 $ 6,785,000 (Continued) Page 34 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 $ 308,622 Current tax capacity value 2,697,595 Captured tax capacity value: Retained by authority 2,388,973 Shared with other taxing districts 0 General obligation tax increment bonds issued 51,554,724 Total loans incurred 0 Amounts redeemed 4,144,724 Outstanding bonds and loans at December 31, 2000 $ 47,410,000 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, 2000 $ 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 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, 2000 $ 0 General Obligation tax increment bonds issued amounts were restated to eliminate the effect of doubling the bonds due to crossover refundings. (Continued) Page 35 CITY OF EDINA, MINNESOTA (6) Retirement Plans A. Defined Benefit Pension Plans The City is involved in one pension program as follows: (a) Defined Benefit Pension Plans - Statewide: Plan Description All full -time and certain part-time employees of the City of Edina are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF), and the Public Employees Police and Fire Fund (PEPFF) which are cost - sharing multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and. Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, fire- fighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree - no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, (Continued) Page 36 CITY OF EDINA, MINNESOTA because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public 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 writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026. Funding Policy Minnesota Statute Chapter 353 sets the rate for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75 %, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary. The City of Edina is required to contribute the following percentages of annual covered payroll: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and 9.30% for PEPFF members. The City's contributions to PERF and PEPFF for the years ended December 31, 2000, 1999, and 1998 were equal to the required contributions for each year, as follows: 2000 1999 1998 PERF $485,277 459,914 446,033 PEPFF $439,163 475,059 515,730 (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. (Continued) Page 37 CITY OF EDINA, MINNESOTA (8) Segment Information for Enterprise Funds The City maintains Enterprise Funds for utility (water and sewer) services, liquor facilities, golf course and arena. Individual funds are also maintained for other enterprise operations designated below as "Other Enterprise Funds" which are recreational in nature such as: swimming pool, art center and Edinborough Park/Centennial Lake. Segment information for the year ended December 31, 2000 is as follows: (Continued) Other Total Golf Enterprise Enterprise Utility Liquor Course Arena Funds Funds Operating Revenues $ 8,793,386 8,989,480 3,954,008 1,136,957 1,991,876 24,865,707 Depreciation 866,758 57,609 508,189 321,095 378,420 2,132,071 Operating income (loss) 1,590,410 984,077 597,676 (174,245) (729,199) 2,268,719 Nonoperating revenues (expenses), net (29,103) (22,944) (338,319) (114,932) 185,089 (320,209) Operating transfers in 0 (1,139,000) 0 81,000 247,000 (811,000) (out) Net income 1,561,307 (177,867) 259,357 (208,177) (297,110) 1,137,510 Property additions 3,076,789 0 236,620 38,593 54,245 3,406,247 Property deletions 194,761 77,634 387,367 52,017 385,791 1,097,570 Net working capital 6,245,260 1,582,787 2,435,371 (56,624) 679,391 10,886,185 Bonds payable 3,265,000 0 7,760,000 1,660,000 1,100,000 13,785,000 Total assets 33,058,598 2,652,678 10,081,282 4,724,466 3,992,964 54,509,988 Total retained earnings (deficit) 28,839,064 2,196,948 1,831,517 (551,552) 227,967 32,543,944 (Continued) Page 38 (9) CITY OF EDINA, MINNESOTA Due From To Other Funds Interfund receivables and payables as of December 31, 2000 were as follows: (10) Restatement of Fund Equity During the year ended December 31, 2000, the City changed its accounting and financial reporting for certain construction contracts that historically had been presented in the Capital Projects Fund. Beginning in 2000, the activity is reported in the Utility Fund, an Enterprise fund, to comply with generally accepted accounting principles. This change qualifies for reporting as a prior -period adjustment. Accordingly, the City has restated beginning fund balances for fiscal 1999 for the effects of the correction as follows: Fund equity as previously reported at January 1, 1999 Adjustment Fund equity as restated at January 1, 1999 Capital Projects Fund $6,547,182 . 1,224,943 $7,772,125 (Continued) Interfund Interfund Fund Receivables Payables General (including amount due from Edina Housing And Redevelopment Authority of $777,486) $ 819,164 384,523 Special Revenue: Community Development Block Grant 0 1,650 Communications 111,766 0 Debt Service: General Debt Service 742,698 0 Improvement Bond Redemption II 158,834 0 Capital Project: Construction 0 1,600,948 Housing and Redevelopment Authority of Edina 0 777,486 Revolving 0 586,567 Enterprise: Utilities 179,441 0 Liquor 1,051,358 0 Swimming Pool 243,000 0 Golf Course 54,973 0 Arena 568 0 Art Center 8,618 0 Edinborough Park/Centennial Lake 22,432 0 Agency: Police Seizure 0 41,678 $ 3,392,852 3,392,852 (10) Restatement of Fund Equity During the year ended December 31, 2000, the City changed its accounting and financial reporting for certain construction contracts that historically had been presented in the Capital Projects Fund. Beginning in 2000, the activity is reported in the Utility Fund, an Enterprise fund, to comply with generally accepted accounting principles. This change qualifies for reporting as a prior -period adjustment. Accordingly, the City has restated beginning fund balances for fiscal 1999 for the effects of the correction as follows: Fund equity as previously reported at January 1, 1999 Adjustment Fund equity as restated at January 1, 1999 Capital Projects Fund $6,547,182 . 1,224,943 $7,772,125 (Continued) Page 39 CITY OF EDINA, MINNESOTA (11) Reserved or Designated Fund Equity The following fund equity balances as of December 31, 2000 have been reserved or designated for the reasons noted below: General Fund: Reserved for prepaid insurance $141,939 Designated for Parkland dedication 122,494 Designated for Edinborough trust 4,631,588 Designated for unrealized investment gain 168,982 Designated for equipment replacement 2,389,053 Designated for insurance claims 775,765 Designated for General Fund operations 5,667,278 Debt Service Funds: Reserved for debt service 16,712,468 Capital Projects: Reserved for encumbrances 17,527 Designated for capital improvements 8,731,959 Enterprise Funds: Reserved for debt service 1,607,120 Trust and Agency Funds: Reserved for deferred compensation plan participants 3,999,778 Total fund equity reservations and designations $44,965,951 (12) Fund Deficits The following funds had deficit fund balances or retained earnings at December 31, 2000: Capital Project Fund: Construction Enterprise Fund: Arena $1,615,406) (551,552) The Capital Projects construction fund deficit will be covered in future periods by special assessment collections, tax increments, operating revenues, or State and bond proceeds. The enterprise Arena 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: Asset Machinery and equipment Less: Accumulated depreciation Total Golf Course $37,966 Arena 341,698 Edinborough Park 88,916 (26,576) (239,188) (62,241) $11,390 102,510 26,675 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, 2000: Year ending December 31: 2001 $65,483 2002 67,620 2003 64,395 2004 35,971 Total minimum lease payments 233,469 Less: Amount representing interest (23,469) Present value of net minimum lease payments $210,000 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 Less: accumulated depreciation — Total $630,749 Year ending December 31: 2001 $83,761 2002 83,761 2003 83,761 2004 83,761 2005 83,761 2006 83,760 Total minimum lease payments 502,565 Less: Amount representing interest (76,555) Present value of net minimum lease payments $426,010 (15) Related Party Transactions During the past fiscal year, one of several depository institutions with which the City maintained cash balances and conducted transactions, was considered a related party since a current elected member of the City Council is employed as an officer of this institution. (16) Fund Equity —Contributed Capital The following is a summary of the changes in contributed capital: Contributed capital: Balance January 1, 2000 Less: Delete Contributed Assets Less: Transfer of depreciation To contributed capital Balance December 31, 2000 Enterprise Art Swimming Golf Edin. Pk. Utilities Center Pool Course Arena Cent. Lake $ 21,463 310,301 1,564,297 0 (1,565) 0 3,600 3,474,150 804,156 0 0 (93,919) (443) 1( 6,810) (96,033) 800 (187,352) (56,044) $ 21,020 291,926 1,468,264 2,800 3,286,798 654,193 (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 up to the annual maximum of $600,000 set by the State. The City is not subject to a deductible for workers compensation, automobile, liability and pollution coverage. Property coverage is also provided by an insurance company. The City pays an annual premium for this coverage, and all claims are paid for by the plan. The City has a $5,000 deductible per occurrence, with an annual maximum of $52,053,445. Police professional insurance coverage is provided by an insurance company. The City pays an annual premium for the coverage, and has a $10,000 deductible per occurrence, with a $500,000 annual maximum. Public official liability insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $15,000 deductible per occurrence, with a $1,000,000 annual maximum. Inland Marine contractor's equipment insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $1,000 deductible and $100,000 maximum per occurrence, with a $1,904,460 annual maximum. Boiler and machinery insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $2,500 deductible per occurrence, with a $1,000,000 annual maximum. 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 City covers all losses above the per occurrence and annual deductibles through a reinsurance policy. The City has designated $775,765 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, 2000 the City of Edina had outstanding 3 series of Housing and Health Care Revenue Bonds, with an aggregate principal amount payable of $35,575,000. 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, 2000, expenditures exceeded appropriations in the following departments: All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. Budget Actual Variance General Government: Administration $792,883 798,115 (5,232) Finance 478,894 514,466 (35,572) Assessing 581,104 600,961 (19,857) Unallocated General: Contingencies 76,500 89,531 (13,031) Share of Special Assess. 20,000 22,505 (2,505) Suburban Rate Authority 4,000 4,496 (496) Central Services: General 3,924,348 3,989,849 (65,501) Public Works Building 239,004 306,721 (67,717) All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. Page 44 GENERAL FUND The General Fund accounts for the revenues and expenditures used to cant' 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 45 CITY OF EDINA, MINNESOTA General Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) Assets Cash Petty cash and change funds Investments Accounts receivable Accrued interest receivable Taxes receivable: Delinquent Allowance for uncollectible taxes Due from other funds Due from other governments Prepaid expenses Total assets Liabilities and Fund Balance Liabilities: Accounts payable Salaries payable Due to other funds Due to other governments Compensated absences payable Deposits payable Total liabilities Fund balance: Reserved Unreserved: Designated Undesignated Total fund balance 2000 $ 0 2,810 13,802,354 262,118 29,757 116,362 (116,362) 819,164 228,156 141,939 $ 15,286,298 465,951 422,586 384,523 89,755 26,384 0 1,389,199 141,939 13,755,160 0 13,897,099 it**, 136,354 2,310 11,449,250 259,379 19,442 99,202 (99,202) 1,387,842 278,504 116,901 13,649,982 438,069 367,615 221,821 152,804 8,540 2,000 1,190,849 2,407,155 7,324,261 2,727,717 12,459,133 Total liabilities and fund balance $ 15,286,298 13,649,982 Page 46 CITY OF EDINA, MINNESOTA General Fund Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) 2000 1999 Variance Favorable Budget Actual (unfavorable) Actual Revenues: Taxes $ 13,505,158 13,575,850 70,692 13,187,547 Licenses and permits 1,399,500 1,835,828 436,328 1,998,798 Intergovernmental 1,615,000 1,584,192 (30,808) 1,703,797 Charges for service 1,683,096 2,024,518 341,422 2,010,532 Fines and forfeitures 479,000 967,421 488,421 794,710 Investment income 30,400 430,577 400,177 (267,839) Sale and rental of property 67,000 171,585 104,585 280,304 Other revenues 26,000 9,803 (16,197) 2,585 Total revenues 18,805,154 20,599,774 1,794,620 19,710,434 Expenditures: Current: General government 2,709,531 2,635,357 74,174 2,527,547 Public safety 8,928,624 8,846,360 82,264 8,516,673 Public works 3,914,625 3,672,057 242,568 3,744,685 Parks 2,240,429 2,150,588 89,841 2,240,731 Unallocated general 337,804 346,099 (8,295) 366,332 Other 0 73,920 (73,920) (135,670) Capital outlay: General govemment 32,045 99,898 (67,853) 15,143 Public safety 498,451 375,731 122,720 441,034 Public works 506,000 555,332 (49,332) 417,871 Parks 100,645 104,921 (4,276) 125,328 Total expenditures 19,268,154 18,860,263 407,891 18,259,674 Excess (deficiency) of revenues over expenditures (463,000) 1,739,511 2,202,511 1,450,760 Other financing sources (uses): Operating transfers in (out) Liquor fund 463,000 0 (463,000) 0 Swimming Pool Fund 0 0 0 183,000 Capital Project funds 0 (279,065) (279,065) (153,460) Edinborough Park/Centennial Lake 0 (108,000) (108,000) (206,000) Parkland dedication 0 85,520 85,520 264,424 Total other financing sources 463,000 (301,545) (764,545) 87,964 Excess of revenues and other financing sources over expenditures and other financing uses $ 0 1,437,966 1,437,966 1,538,724 Fund balance - January 1 12,459,133 10,920,409 Fund Balance - December 31 $ 13,897,099 $ 12,459,133 Page 47 CITY OF EDINA, MINNESOTA General Fund Schedule of Revenues - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) Intergovernmental: Federal aid 8,000 2000 (1,294) 1999 State grants: 0 4,155 Variance 0 Homestead credit 979,624 979,624 Favorable 956,476 State highway aid Budget Actual (unfavorable) Actual Taxes: 0 1,476 1,476 15,153 General property tax $ 13,500,158 13,569,399 69,241 13,183,581 Penalties and interest 5,000 6,451 1,451 3,966 Total taxes 13,505,158 13,575,850 70,692 13,187,547 Licenses and permits 1,399,500 1,835,828 436,328 1,998,798 Intergovernmental: Federal aid 8,000 6,706 (1,294) 138,260 State grants: 0 4,155 4,155 0 Homestead credit 979,624 979,624 0 956,476 State highway aid 140,000 140,000 0 140,000 Other 0 1,476 1,476 15,153 Police aid 321,000 294,436 (26,564) 291,704 County grants: 15,000 13,821 (1,179) 15,117 Health programs 166,376 161,950 (4,426) 162,204 Total intergovernmental 1,615,000 1,584,192 (30,808) 1,703,797 Charges for service: Building Department 2,500 10,174 7,674 84,545 City Clerk 0 4,155 4,155 0 Fire Department 20,000 21,027 1,027 12,863 Ambulance Fees 948,000 1,094,552 146,552 1,034,216 Police Department 128,000 117,098 (10,902) 161,371 Engineering 85,000 167,717 82,717 192,323 Health Department 15,000 13,821 (1,179) 15,117 Planning Department 16,000 23,275 7,275 25,565 Surcharge 0 3,689 3,689 2,717 Housing Foundation Contract 24,500 21,725 (2,775) 24,175 HRA Services 180,000 234,904 54,904 180,087 Assessing Searches 1,000 1,320 320 1,162 Park Registration 91,800 134,869 43,069 106,114 Other Fees 0 5,028 5,028 7,558 50th & France Assessment 11,000 11,000 0 11,000 Charges to other Funds 160,296 160,164 (132) 151,719 Total charges for service 1,683,096 2,024,518 341,422 2,010,532 Fines and forfeitures 479,000 967,421 488,421 794,710 Sale and rental of property 67,000 171,585 104,585 280,304 Other revenues: Investment Income 30,400 430,577 400,177 (267,839) Donations 1,000 0 (1,000) 500 Other revenue 25,000 9,803 (15,197) 2,085 Total other revenues 56,400 440,380 383,980 (265,254) Total revenues $ 18,805,154 20,599,774 1,794,620 19,710,434 Page 48 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) Planning: Personal services 218,620 2000 903 1999 Contractual services 25,100 3,848 Variance 28,751 Commodities 1,215 48 Favorable 310 Central services Budget Actual (unfavorable) Actual General government: 4,891 1,833 3,058 1,659 Mayor and council: 317,290 290,910 26,380 302,894 Personal services $ 27,500 27,451 49 25,687 Contractual services 3,900 4,000 (100) 4,051 Commodities 1,000 831 169 445 Central services 35,004 35,004 0 34,668 Total mayor and council 67,404 67,286 118 64,851 Administration: 10,200 3,913 6,287 0 Personal services 518,173 537,433 (19,260) 501,254 Contractual services 115,400 98,096 17,304 116,605 Commodities . 1,900 2,550 (650) 1,940 Central services 151,896 151,896 0 141,288 Capital outlay 5,514 8,140 (2,626) 4,962 Total administration 792,883 798,115 (5,232) 766,049 Planning: Personal services 218,620 217,717 903 209,474 Contractual services 25,100 3,848 21,252 28,751 Commodities 1,215 48 1,167 310 Central services 67,464 67,464 0 62,700 Capital outlay 4,891 1,833 3,058 1,659 Total planning 317,290 290,910 26,380 302,894 Finance: Personal services 305,446 282,209 23,237 244,249 Contractual services 78,300 97,049 (18,749) 100,803 Commodities 600 1,326 (726) 840 Central services 87,408 87,408 0 78,900 Capital outlay 7,140 46,474 (39,334) 4,349 Total finance 478,894 514,466 (35,572) 429,141 Election: Personal services 100,173 92,702 7,471 8,678 Contractual services 13,200 5,077 8,123 312 Commodities 8,000 7,022 978 746 Central services 13,428 13,428 0 12,204 Capital outlay 10,200 3,913 6,287 0 Total election 145,001 122,142 22,859 21,940 Assessing Personal services 393,357 395,288 (1,931) 375,498 Contractual services 62,986 52,329 10,657 51,823 Commodities 1,781 1,413 368 1,476 Central services 108,480 108,480 0 95,904 Capital outlay 14,500 43,451 (28,951) 4,173 Total assessing 581,104 600,961 (19,857) 528,874 Legal and court services: Contractual services 359,000 341,375 17,625 428,941 Total general government 2,741,576 2,735,255 6,321 2,542,690 Page 49 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) Fire protection: Personal services 2,196,752 2000 159,611 1999 Contractual services 182,315 215,511 Variance 212,638 Commodities 52,410 141,801 Favorable 140,272 Central services Budget Actual (unfavorable) Actual Public Safety: 166,872 156,704 10,168 117,098 Police protection: 3,153,109 3,105,917 47,192 2,976,474 Personal services 3,471,796 3,435,371 36,425 3,314,965 Contractual services 248,715 265,515 (16,800) 207,191 Commodities 44,577 61,259 (16,682) 51,306 Central services 1,127,328 1,127,328 0 1,142,160 Capital outlay 297,193 204,534 92,659 263,509 Total police protection 5,189,609 5,094,007 95,602 4,979,131 Fire protection: Personal services 2,196,752 2,037,141 159,611 1,950,458 Contractual services 182,315 215,511 (33,196) 212,638 Commodities 52,410 141,801 (89,391) 140,272 Central services 554,760 554,760 0 556,008 Capital outlay 166,872 156,704 10,168 117,098 Total fire protection 3,153,109 3,105,917 47,192 2,976,474 Civil defense: 9,427,075 9,222,091 204,985 8,957,707 Personal services 23,466 23,947 (481) 24,925 Contractual services 8,165 5,698 2,467 7,212 Commodities 1,216 1,366 (150) 1,338 Capital outlay 7,674 0 7,674 0 Total civil defense 40,521 31,011 9,510 33,475 Animal control: Personal services 40,242 38,747 1,495 34,771 Contractual services 7,171 4,465 2,706 11,178 Commodities 3,478 1,196 21282 504 Central services 10,692 10,692 0 14,220 Capital outlay 6,342 0 6,342 22,901 Total animal control 67,925 55,100 12,825 83,574 Public Health: 9,427,075 9,222,091 204,985 8,957,707 Personal services 192,750 178,003 14,747 176,796 Contractual services 192,005 190,980 1,025 192,432 Commodities 4,125 2,763 1,362 434 Central services 66,624 66,624 0 65,400 Capital outlay 6,160 207 5,953 2,643 Total public health 461,664 438,577 23,087 437,705 Inspections: Personal services 354,052 349,650 4,402 290,834 Contractual services 43,014 31,476 11,538 24,271 Commodities 4,667 3,763 904 6,508 Central services 98,304 98,304 0 90,852 Capital outlay 14,210 14,286 (76) 34,883 Total inspections 514,247 497,479 16,768 447,348 Total public safety 9,427,075 9,222,091 204,985 8,957,707 Page 50 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) Engineering: Personal services 382,088 2000 15,438 1999 Contractual services 28,200 30,152 Variance 58,214 Commodities 12,000 7,281 Favorable 7,875 Central services Budget Actual (unfavorable) Actual Public Works: 50,000 24,905 25,095 60,789 Administration: 604,192 560,892 43,300 603,464 Personal services 115,293 114,169 1,124 112,160 Contractual services 4,765 3,643 1,122 3,944 Commodities 0 749 (749) 800 Central services 34,920 34,920 0 33,792 Total administration 154,978 153,481 1,497 150,696 Engineering: Personal services 382,088 366,650 15,438 357,894 Contractual services 28,200 30,152 (1,952) 58,214 Commodities 12,000 7,281 4,719 7,875 Central services 131,904 131,904 0 118,692 Capital outlay 50,000 24,905 25,095 60,789 Total engineering 604,192 560,892 43,300 603,464 Supervision and overhead: Personal services 152,805 153,889 (1,084) 126,435 Contractual services 33,000 26,334 6,666 26,861 Commodities 1,000 208 792 25 Central services 428,832 428,832 0 418,656 Total supervision and overhead 615,637 609,263 6,375 571,977 Street Maintenance: Personal services 968,500 859,839 108,661 893,488 Contractual services 609,150 532,740 76,410 615,732 Commodities 476,500 445,079 31,421 462,445 Central services 535,668 535,668 0 507,672 Capital outlay 456,000 530,427 (74,427) 357,082 Total street maintenance 3,045,818 2,903,753 142,065 2,836,419 Total public works 4,420,625 4,227,389 193,237 4,162,556 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) Parks: Administration: Personal services Contractual services Commodities Central services Capital outlay Total administration Recreation: Personal services Contractual services Commodities Total recreation Maintenance: Personal services Contractual services Commodities Central services Capital outlay Total supervision and overhead Total parks Page 51 2000 1999 Variance Favorable Budget Actual (unfavorable) Actual 395,223 379,976 15,247 363,046 26,495 26,784 (289) 26,344 18,844 13,994 4,850 19,758 116,064 116,054 10 114,300 4,370 5,230 (860) 3,353 560,996 542,038 18,957 526;801 99,135 93,925 5,210 95,424 18,778 12,273 6,505 13,766 31,486 29,781 1,705 35,559 149,399 135,979 13,420 144,749 $ 744,520 772,800 (28,280) 757,120 267,336 191,569 75,767 284,926 138,272 129,156 9,116 119,632 384,276 384,276 0 410,856 96,275 99,691 (3,416) 121,975 1,630,679 1,577,492 53,187 1,694,509 2,341,074 2,255,509 85,564 2,366,059 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) Unallocated general expenditures: Contingencies Contractual services Commodities Capital outlay Total contingencies City's share of special assessment Human Rights Commission Contractual services Total Human Rights Commission Fireworks Commodities Total fireworks Suburban Rate Authority Contractual services Total Suburban Rate Authority Page 52 2000 1999 Variance Favorable Budget Actual (unfavorable) Actual 76,500 78,972 (2,472) 72,823 0 10,559 (10,559) 9,485 0 0 0 12,115 76,500 89,531 (13,031) 94,423 20,000 22,505 (2,505) 29,188 Contractual services 21,218 83,350 82,125 1,225 79,663 83,350 82,125 1,225 79,663 11,000 11,000 0 11,000 11,000 11,000 0 11,000 4,000 4,496 (496) 4,000 4,000 4,496 (496) 4,000 Familink Contractual services 30,236 30,236 0 34,505 Total Familink 30,236 30,236 0 34,505 Regional Planning Commission Contractual services 21,218 21,218 0 20,357 Total Regional Planning Commission 21,218 21,218 0 20,357 Deer control Personal services Contractual services Commodities Total deer control Fire Station debt service Total unallocated general expenditures Central services Total expenditures 0 786 (786) 0 7,000 315 6,685 9,325 .nn A nn 9 1A 44^ I ,JVV I,LLI V,LI J J,TVJ V�,VVV VV,IVI LV� VV,IVI 337,804 346,099 (8,295) 366,332 0 73,920 (73,920) (135,670) $ 19,268,154 18,860,263 407,891 18,259,674 CITY OF EDINA, MINNESOTA General Fund Schedule of Central Services Expenditures - Budget and Actual Year ended December 31, 2000 (with comparative actual amounts for year ended December 31, 1999) General: Personal services Contractual services Commodities Capital outlay Total general City Hall: Personal services Contractual services Commodities Fixed charges Total City Hall Public Works building: Personal services Contractual services Commodities Fixed charges Capital outlay Total Public Works building Equipment operation: Personal services Contractual services Commodities Fixed charges Capital outlay Total equipment operation Total central services expenditures Less allocation to other activities Page 53 Net central services 0 73,920 (73,920) (135,670) 2000 1999 Variance Favorable Budget Actual (unfavorable) Actual $ 3,038,848 3,059,486 (20,638) 2,755,131 783,500 848,367 (64,867) 734,980 26,000 45,010 (19,010) 36,651 76,000 36,986 39,014 39,595 3,924,348 3,989,849 (65,501) 3,566,357 68,664 63,577 5,087 66,301 45,420 47,315 (1,895) 45,745 34,560 20,443 14,117 33,954 17,112 17,112 0 15,804 165,756 148,447 17,309 161,804 66,638 108,338 (41,700) 50,762 93,500 98,329 (4,829) 85,242 58,500 82,594 (24,094) 65,410 13,068 13,068 0 9,744 7,298 4,392 2,906 1,240 239,004 306,721 (67,717) 212,398 304,909 271,920 32,989 271,188 90,500 82,412 8,088 85,668 485,000 484,386 614 468,397 264,720 264,720 0 243,516 27,223 5,769 21,454 199,166 1,172,352 1,109,207 63,145 1,267,935 5,501,460 5,554,224 (52,764) 5,208,494 5,501,460 5,480,304 21,156 5,344,164 Net central services 0 73,920 (73,920) (135,670) Page 54 SPECIAL REVENUE FUNDS Special revenue funds account for revenues derived from specific taxes or other earmarked revenue sources and are usually required by statute or local ordinance and /or resolution to finance particular functions, or activities of government. The City has the following special revenue funds: Community Development Block Grant Fund: This fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974. Communications Fund: This fund was established to account for funds received from the franchise fee of the local cable television service. CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Balance Sheet December 31, 2000 (with comparative totals for December 31, 1999) Community Development Block Grant Communications Assets Page 55 Totals 2000 1999 Investments $ 0 1,049,987 1,049,987 934,892 Accounts receivable 0 8 8 721 Accrued interest receivable 0 12,869 12,869 10,947 Due from other funds 0 111,766 111,766 2,000 Due from other governments 1,650 0 1,650 1,915 Total assets $ 1,650 1,174,630 1,176,280 950,475 Liabilities and Fund Balance Liabilities: Accounts payable 0 22,419 22,419 5,823 Salaries payable 0 1,207 1,207 0 Due to other funds 1,650 0 1,650 1,861 Due to other governments 0 3,087 3,087 0 Total liabilities 1,650 26,713 28,363 7,684 Fund balance: Unreserved - undesignated 0 1,147,917 1,147,917 942,791 Total liabilities and fund balance $ 1,650 1,174,630 1,176,280 950,475 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Revenues: Franchise fees Intergovernmental: Federal grants Investment income Other revenue 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 Fund balance- December 31 Year ended December 31, 2000 (with comparative totals for year ended December 31, 1999) Community Development Block Grant $ 0 Page 56 Totals Communications 2000 1999 336,678 336,678 297,866 42,231 0 42,231 46,241 0 117,016 117,016 (17,047) 0 3,617 3,617 0 42,231 457,311 499,542 327,060 1,650 40,274 41,924 4,635 40,581 182,754 223,335 231,242 0 4,323 4,323 4,475 0 16,188 16,188 35,184 0 8,646 8,646 56,812 42,231 252,185 294,416 332,348 0 205,126 205,126 (5,288) 0 942,791 942,791 948,079 $ 0 1,147,917 1,147,917 942,791 Page 57 DEBT SERVICE FUNDS The Debt Service Funds finance and account for the payment of principal and interest on the General Obligation Redevelopment, General Obligation Park Improvements and Tax Increment Bonds. Provisions are made in the City's general property tax levy for money sufficient to meet the general obligation debt. The Improvement Bond Redemption II Fund was established to finance and account for payment of principal and interest on special assessment bonds issued. Financing of this debt service comes primarily from special assessments levied against benefited properties. CITY OF EDINA, MINNESOTA Debt Service Funds Combining Balance Sheet December 31, 2000 (with comparative totals for December 31, 1999) General Improvement Debt Bond Assets Service Redemption II Cash $ 75,751 0 Cash and investments with fiscal agents 15,726,593 0 Special assessments receivable: Current 0 32,839 Deferred 0 2,260,602 Bloomington 0 96,533 Taxes Receivable: Page 58 Totals 2000 1999 75,751 344,335 15,726,593 0 32,839 25,146 2,260,602 2,783,207 96,533 108,600 Delinquent 15,542 0 15,542 12,971 Allowance for uncollectible taxes (15,542) 0 (15,542) (12,971) Due from other funds 742,698 158,834 901,532 422,726 Due from other governments 5,422 3,342 8,764 6,914 Total assets $ 16,550,464 2,552,150 19,102,614 3,690,928 Liabilities and Fund Balance Liabilities Due to other funds 0 0 0 366,606 Due to other governments 0 96,704 96,704 108,686 Deferred revenue 0 2,293,442 2,293,442 2,808,353 Total liabilities 0 2,390,146 2,390,146 3,283,645 Fund balance: Reserved for debt service 16,550,464 162,004 16,712,468 407,283 Total fund balance 16,550,464 162,004 16,712,468 407,283 Total liabilities and fund balance $ 16,550,464 2,552,150 19,102,814 3,690,928 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 2000 (with comparative totals for year ended December 31, 1999) 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 from sale of tax increment 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 59 General Improvement Debt Bond Totals Service Redemption II 2000 1999 $ 738,349 0 738,349 723,026 0 721,871 721,871 855,137 88,788 0 88,788 0 827,137 721,871 1,549,008 1,578,163 0 1,600 1,600 1,800 5,870,000 180,000 6,050,000 3,275,000 3,095,261 13,340 3,108,601 3,262,266 8,965,261 194,940 9,160,201 6,539,066 (8,138,124) 526,931 (7,611,193) (4,960,903) 5,778,574 0 5,778,574 5,646,647 0 0 0 (999,867) 18,137,804 0 18,137,804 0 23,916,378 0 23,916,378 4,646,780 15,778,254 526,931 16,305,185 (314,123) 772,210 (364,927) 407,283 721,406 $ 16,550,464 162,004 16,712,468 407,283 Page 60 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 19966 bond. Revolving Fund: This fund was established to provide financing for capital improvements as designated in the City's capital improvement budget. Page 61 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Balance Sheet December 31, 2000 (with comparative totals for December 31, 1999) Fund balance(deficit): Reserved for encumbrances 17,527 Housing and 0 17,527 328 Reserved for special projects 0 Redevelopment 0 0 78,342 Unreserved: Authority of Totals Assets Construction Edina Revolving 2000 1999 Cash $ 0 104,217 0. 104,217 19,180 Investments 0 16,314,568 9,359,100 25,673,668 23,641,218 Accounts receivable 0 0 26,653 26,653 11,664 Accrued interest receivable 0 228,168 88,312 316,480 236,501 Special assessments receivable: Delinquent 0 0 1,946 1,946 1,982 Deferred 0 0 983,163 983,163 143,200 Taxes receivable 0 0 0 0 7,647 Due from other governments 0 150,847 2,486 153,333 1,274,638 Total assets $ 0 16,797,800 10,461,660 27,259,460 25,336,030 Liabilities and Fund Balance Liabilities: Accounts payable 1,475 573,707 39,439 614,621 399,501 Salaries payable 0 0 2,257 2,257 1,051 Contracts payable 12,983 86,341 108,175 207,499 15,908 Due to other funds 1,600,948 777,486 586,567 2,965,001 5,790,313 Due to other governments 0 4,433 8,154 12,587 189 Taxes payable 0 0 0 0 80,593 Deferred revenue 0 0 985,109 985,109 145,180 Total liabilities 1,615,406 1,441,967 1,729,701 4,787,074 6,432,735 Fund balance(deficit): Reserved for encumbrances 17,527 0 0 17,527 328 Reserved for special projects 0 0 0 0 78,342 Unreserved: Designated 0 0 8,731,959 8,731,959 0 Unreserved - undesignated (1,632,933) 15,355,833 0 13,722,900 18,824,625 Total fund balance (deficit) (1,615,406) 15,355,833 8,731,959 22,472,386 18,903,295 Total liabilities and fund balance $ 0 16,797,800 10,461,660 27,259,460 25,336,030 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Year ended December 31, 2000 (with comparative totals for year ended December 31, 1999) Revenues: Tax increments Special assessments Intergovernmental Charges for services Investment income Sale and rental of property Other revenues Total revenues Expenditures: Current: Other. Personal services Professional fees Other Construction costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in (out): General fund Working capital /construction fund General debt service fund Liquor 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 Page 62 0 Housing and 71,467 306,639 238,165 0 Redevelopment 90,845 384,578 190,556 0 Authority of 48,742 Totals 435,395 Construction Edina Revolving 2000 1999 $ 0 8,590,313 0 8,590,313 8,084,657 0 0 438,005 438,005 135,193 195,690 0 58,567 254,257 1,434,970 845,230 0 32,918 878,148 204,001 0 1,134,008 605,748 1,739,756 700,000 0 0 984,941 984,941 3,781 17,457 3,577 62,478 83,512 468,889 1,058,377 9,727,898 2,182,657 12,968,932 11,031,491 0 235,172 71,467 306,639 238,165 0 293,733 90,845 384,578 190,556 0 475,719 48,742 524,461 435,395 810,178 5,844,988 552,800 7,207,966 4,542,885 810,178 6,849,612 763,854 8,423,644 5,407,001 248,199 2,878,286 1,418,803 4,545,288 5,624,490 0 0 279,065 279,065 153,460 1,174,434 0 (1,174,434) 0 0 0 (5,778,574) 0 (5,778,574) (4,646,780) 0 0 919,000 919,000 0 0 3,604,312 0 3,604,312 0 1,174,434 (2,174,262) 23,631 (976,197) (4,493,320) 1,422,633 704,024 1,442,434 3,569,091 1,131,170 (3,038,039) 14,651,809 7,289,525 18,903,295 17,772,125 $ (1,615,406) 15,355,833 8,731,959 22,472,386 18,903,295 Page 63 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. Page 64 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Balance Sheet December 31, 2000 (with comparative totals for December 31, 1999) Long -term liabilities: Deposits payable 36,100 0 Swimming Assets Utilities Liquor Pool Current assets: 0 0 0 Cash $ 0 0 0 Petty cash and change funds 0 4,440 0 Investments 4,580,148 0 0 Cash with fiscal agents 0 0 532,126 Receivables: Accounts 0 2,993 53 Customers 2,170,225 0 0 Interest 43,672 0 0 Special Assessments 76,457 0 0 Due from other funds 179,441 1,051,358 243,000 Due from other governments 4,527 0 0 Inventory 88,204 979,726 0 Total current assets 7,142,674 2,038,517 775,179 Advance to other funds 0 0 0 Property and equipment, net 25,892,008 614,161 1,860,344 Discounts on bonds 23,916 0 5,291 Total assets $ 33,058,598 2,652,678 2,640,814 Liabilities and Fund Equity Current liabilities: Accounts payable 338,137 241,058 2,017 Salaries payable 24,512 32,256 0 Contracts payable 94,563 0 0 Accrued interest payable 52,644 0 27,484 Due to other funds 0 0 0 Due to other governments 241,501 103,494 31 Compensated absences payable 146,057 78,922 0 Total current liabilities 897,414 455,730 29,532 Long -term liabilities: Deposits payable 36,100 0 0 Deferred revenue 0 0 0 Advance from other funds 0 0 0 Obligation under capital lease 0 0 0 Bonds payable 3,265,000 0 1,100,000 Total long -term liabilities 3,301,100 0 1,100,000 Total liabilities 4,198,514 455,730 1,129,532 Fund equity: Contributed capital 21,020 0 1,468,264 Retained earnings (deficit): Reserved for debt service 274,998 0 32,500 Unreserved - undesignated 28,564,066 2,196,948 10,518 Total retained earnings (deficit) 28,839,064 2,196,948 43,018 Total liabilities and fund equity $ 33,058,598 2,652,678 2,640,814 Page 65 Golf Art Edinborough Park Totals Course Arena Center Centennial Lake 2000 1999 0 0 0 0 0 1,503 4,400 700 275 1,500 11,315 11,265 0 0 0 0 4,580,148 1,759,670 2,750,600 2,952 0 820 3,286,498 3,306,034 2,459 108,636 0 374 114,515 109,903 0 0 0 0 2,170,225 2,010,560 0 0 0 63,314 106,986 56,313 0 0 0 0 76,457 105,212 54,973 568 8,618 22,432 1,560,390 4,809,711 0 0 0 0 4,527 5,212 82,111 0 15,493 0 1,165,534 981,068 2,894,543 112,856 24,386 88,440 13,076,595 13,156,451 0 0 0 0 0 145,012 7,145,696 4,602,406 445,497 793,827 41,353,939 40,376,037 41,043 9,204 0 0 79,454 97,273 10,081,282 4,724,466 469,883 882,267 54,509,988 53,774,773 61,716 39,683 16,743 26,474 725,828 632,025 26,544 14,902 4,843 17,824 120,881 104,259 0 0 0 0 94,563 13,170 201,130 46,105 0 0 327,363 401,692 0 0 0 0 0 200,000 5,611 350 735 3,959 355,681 155,320 164,171 68,440 30,405 78,099 566,094 144,466 459,172 169,480 52,726 126,356 2,190,410 1,650,932 10,993 3,500 0 0 50,593 12,354 0 5,040 0 0 5,040 5,040 0 0 0 0 0 145,012 16,800 151,200 0 42,000 210,000 260,000 7,760,000 1,660,000 0 0 13,785,000 14,570,000 7,787,793 1,819,740 0 42,000 14,050,633 14,992,406 8,246,965 1,989,220 52,726 168,356 16,241,043 16,643,338 2,800 3,286,798 291,926 654,193 5,725,001 6,177,967 1,115,031 184,591 0 0 1,607,120 1,607,120 716,486 (736,143) 125,231 59,718 30,936,824 29,346,348 1,831,517 (551,552) 125,231 59,718 32,543,944 30,953,468 10,081,282 4,724,466 469,883 882,267 54,509,988 53,774,773 Page 66 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) December 31, 2000 (with comparative totals for December 31, 1999) Swimming Utilities Liquor Pool Operating revenues: Charges for sales and services: Sales - Liquor $ 0 8,989,480 0 Sales - Retail 0 0 196 Sales - Utility 8,639,374 0 0 Sales - Concessions 0 0 73,625 Memberships 0 0 373,798 Admissions 0 0 150,091 Building rental 0 0 15,397 Rental of equipment 0 0 0 Greens fees 0 0 0 Otherfees 154,012 0 23,858 Total operating revenues 8,793,386 8,989,480 636,965 Operating expenses: Cost of sales and services 102,855 6,663,033 21,756 Personal services 893,746 768,795 183,178 Contractual services 4,378,399 221,260 89,917 Commodities 505,674 51,094 45,892 Central services 455,544 243,612 25,464 Depreciation 866,758 57,609 150,519 Total operating expenses 7,202,976 8,005,403 516,726 Operating income (loss) 1,590,410 984,077 120,239 Nonoperating revenues (expenses): Investment income 159,569 0 22,201 Donations 0 0 0 Miscellaneous revenue (expense) 110 243 45 Interest and fiscal charges (127,525) 0 (55,425) Interest on capital lease 0 0 0 Gain (loss) on disposal of capital assets (58,299) (23,187) (37,752) Amortization of bond discount (2258) 0 (1,962) Total nonoperating revenues (expenses) (29,103) (22,944) (72,893) Income (loss) before operating transfers 1,561,307 961,133 47,346 Operating transfers in (out): General fund 0 0 0 Art center fund 0 (139,000) 0 Liquor store fund 0 0 0 Golf Course fund 0 0 0 Arena fund 0 (81,000) 0 Revolving fund 0 (919,000) 0 Total operating transfers, net 0 (1,139,000) 0 Net income (loss) 1,561,307 (177,867) 47,346 Add depreciation on contributed assets 443 0 96,033 Increase (decrease) in retained earnings 1,561,750 (177,867) 143,379 Retained earnings (deficit) - January 1 27,277,314 2,374,815 (100,361) Retained earnings (deficit) - December 31 $ 28,839,064 2,196,948 43,018 Golf Art Course Arena Center Edinborough Park Centennial Lake Totals Page 67 ^rlr% 0 0 0 0 8,989,480 8,423,812 347,017 24,720 40,540 0 412,473 376,148 0 0 0 0 8,639,374 8,378,216 297,666 0 0 25,062 396,353 391,037 157,155 5,218 26,629 21,179 583,979 520,848 271,716 82,745 0 58,155 562,707 581,044 67,467 908,657 0 198,650 1,190,171 1,129,746 338,021 7,268 0 53,760 399,049 377,198 1,974,991 0 0 181,447 2,156,438 2,046,256 499,975 108,349 315,543 433,946 1,535,683 1,332,433 3,954,008 1,136,957 382,712 972,199 24,865,707 23,556,738 340,722 65 35,810 10,643 7,174,884 6,704,254 1,461,937 447,206 225,619 665,159 4,645,640 4,147,974 459,641 382,772 187,868 363,495 6,083,352 5,536,401 310,035 60,824 64,320 158,701 1,196,540 1,033,585 275,808 99,240 62,465 202,368 1,364,501 1,293,228 508,189 321,095 56,032 171,869 2,132,071 2,103,687 3,356,332 1,311,202 632,114 1,572,235 22,596,988 20,819,129 597,676 (174,245) (249,402) (600,036) 2,268,719 2,737,609 .114,840 0 0 322,663 619,273 408,055 0 0 21,352 0 21,352 17,283 170 0 0 87 655 67,293 (405,548) (92,989) 0 0 (681,487) (605,479) (1,049) (9,440) 0 (2,622) (13,111) (15,511) (34,983) (11,353) (35,476) (48,022) (249,072) 27,636 (11,749) (1,150) 0 0 (17,819) (16,341) (338,319) (114,932) (14,124) 272,106 (320,209) (117,064) 259,357 (289,177) (263,526) (327,930) 1,948,510 2,620,545 0 0 0 108,000 108,000 23,000 0 0 0 0 (139,000) (155,000) 0 81,000 139,000 0 220,000 680,000 0 0 0 0 0 35,000 0 0 0 0 (81,000) (560,000) 0 0 0 0 (919,000) 0 0 81,000 139,000 108,000 (811,000) 23,000 259,357 (208,177) (124,526) (219,930) 1,137,510 2,643,545 800 187,352 18,375 149,963 452,966 448,134 260,157 (20,825) (106,151) (69,967) 1,590,476 3,091,679 1,571,360 (530,727) 231,382 129,685 30,953,468 27,861,789 1,831,517 (551,552) 125,231 59,718 32,543,944 30,953,468 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Cash Flows December 31, 2000 (with comparative totals for year ended December 31, 1999) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in customer accounts receivable (Increase) decrease in special assessments receivable (Increase) decrease in due from other funds (Increase) decrease in due from other governments (Increase) decrease in inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in contracts payable Increase (decrease) in accrued interest payable Decrease in due to other funds Increase (decrease) in due to other governments Increase in compensated absences payable Increase in deposits payable Miscellaneous revenue Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Donations Increase (decrease) in advance to other funds Increase (decrease) in advance from other funds Operating transfer in (out) - General Fund Operating transfer (out) -Art Center Operating transfer in— Liquor Store Fund Operating transfer in —Golf Course Fund Operating transfer (out) —Arena Operating transfer (out) — Revolving fund Net cash provided used for noncapital financing activities Cash flows from capital and related financing activities: Net acquisition of capital assets Gain (loss) on disposal of capital assets Proceeds from revenue bonds Principal paid on revenue bonds Increase on bond discount Principal paid on capital lease Interest received from fiscal agent Interest paid on capital lease Interest paid on bonds Net cash (used) provided for capital and related financing activities Cash flows from investing activities: Purchase of investments Decrease in interest receivable Investment income Net cash used 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: Contribution of fixed assets Total noncash noncapital financing activity Page 68 (3,006,604) (58,299) 0 (335,000) 0 0 0 0 (127,525) (3,527,428) 23,187 (23,187) 0 0 0 0 0 0 0 0 9,459 (37,752) 0 (20,000) 0 0 22,201 0 (55,425) (81,517) (2,820,478) 0 0 (43,672) 0 0 159,569 0 0 (2,704,581) 0 0 0 0 (3,475) 0 4,440 535,601 0 4,440 532,126 0 0 0 $ 0 0 0 Swimming Utilities Liquor Pool $ 1,590,410 984,077 120,239 866,758 57,609 150,519 0 (2,993) (53) (159,665) 0 0 28,755 0 0 3,387,000 94,144 (190,033) 685 0 0 (65,447) (98,963) 0 183,343 (104,557) 1,558 2,556 3,447 0 81,393 0 0 (38,964) 0 (4,175) 0 0 0 208,029 (1,091) (58) 110,946 62,072 0 36,100 0 0 110 243 45 4,641,599 9,911 (42,197) 6,232,009 993,988 78,042 0 0 0 0 145,012 0 0 0 0 0 0 0 0 (139,000) 0 0 0 0 0 0 0 0 (81,000) 0 0 (919,000) 0 0 (993,988) 0 (3,006,604) (58,299) 0 (335,000) 0 0 0 0 (127,525) (3,527,428) 23,187 (23,187) 0 0 0 0 0 0 0 0 9,459 (37,752) 0 (20,000) 0 0 22,201 0 (55,425) (81,517) (2,820,478) 0 0 (43,672) 0 0 159,569 0 0 (2,704,581) 0 0 0 0 (3,475) 0 4,440 535,601 0 4,440 532,126 0 0 0 $ 0 0 0 Page 69 Golf Art Edinborough Park Totals Course Arena Center Centennial Lake 2000 1999 597,676 (174,245) (249,402) (600,036) 2,268,719 2,776,274 508,189 321,095 56,032 171,869 2,132,071 6,833 (8,025) 0 55,939 51,701 0 0 0 0 (159,665) 0 0 0 0 28,755 (54,973) 2,146 11,648 (611) 3,249,321 0 0 0 0 685 (20,219) 0 163 0 (184,466) 17,101 4,917 3,557 (12,116) 93,803 2,459 7,949 87 124 16,622 0 0 0 0 81,393 (28,448) (2,742) 0 0 (74,329) (200,000) 0 0 0 (200,000) 437 (8,729) (285) 2,058 200,361 122,028 53,571 20,610 52,401 421,628 2,139 0 0 0 38,239 170 0 0 87 655 355,716 370,182 91,812 269,751 5,696,774 953,392 195,937 (157,590) (330,285) 7,965,493 0 0 21,352 0 0 0 (145,012) 0 0 0 0 0 0 0 0 0 81,000 139,000 0 0 0 0 (13,111) (15,511) 0 0 0 (145,012) 81,000 160,352 (166,150) (25,238) 32,764 (34,983) (11,353) (35,476) 0 0 0 (330,000) (100,000) 0 0 0 0 (4,000) (36,000) 0 114,840 0 0 (1,049) (9,440) 0 (405,548) (92,989) 0 (826,890) (275,020) (2,712) 0 21,352 0 145,012 0 (145,012) 108,000 108,000 0 (139,000) 0 220,000 0 0 0 (81,000) 0 (919,000) 108,000 (789,648) 2,103,687 (72,651) 72,776 (58,820) (4,052,705) (4,554) 1,181 (22,390) 17,877 (63,395) 163,103 (50,000) (211,516) 11,513 5,502 23,921 (2,136,471) 639,803 35,189 808,417 (808,417) 23,000 (155,000) 680,000 35,000 (560,000) 0 58,189 22,609 (3,109,973) (1,398,226) (48,022) (249,072) 27,636• 0 0 6,870,000 0 (785,000) (850,000) 0 0 (54,368) (10,000) (50,000) (50,000) 0 137,041 68,275 (2,622) (13,111) (15,511) 0 (681,487) (605,479) 38,035) (4,751,602) 3,992,327 0 0 0 0 (2,820,478) (1,759,670) 0 0 0 (63,314) (106,986) 48,674 0 0 0 322,663 482,232 326,581 0 0 0 259,349 (2,445,232) (1,384,415) (18,510) 1,917 50 (971) (20,989) 3,305,904 2,773,510 1,735 225 3,291 3,318,802 12,898 2,755,000 3,652 275 2,320 3,297,813 3,318,802 0 0 0 0 0 8,181 0 0 0 0 0 8,181 Page 70 CITY OF EDINA, MINNESOTA Utilities Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) Assets Current assets: Investments Receivables: Customers Interest Assessments Due from other funds Due from other governments Inventory Total current assets Property and equipment, net Discount on bonds Total assets Liabilities and Retained Earnings Current liabilities: Accounts payable Salaries payable Contracts payable Accrued interest payable Due to other governments Compensated absences payable Total current liabilities Long -term liabilities: Deposits payable Bonds payable Total liabilities Fund equity: Contributed capital Retained earnings: Reserved for debt service Unreserved -- undesignated Total retained earnings 2000 $ 4,580,148 2,170,225 43,672 76,457 179,441 4,527 88,204 7,142,674 1999 1,759,670 2,010,560 0 105,212 3,566,441 5,212 22,757 7,469,852 25,892,008 23,752,161 23,916 26,874 $ 33,058,598 31,248,887 338,137 24,512 94,563 52,644 241,501 146,057 897,414 36,100 3,265,000 4,198,514 21,020 274,998 28, 564,066 28,839,064 154,794 21,956 13,170 91,608 33,472 35,111 350,111 0 3,600,000 3,950,111 21,462 274,998 27,002,316 27,277,314 Total liabilities and retained earnings $ 33,058,598 31,248,887 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Operating expenses: Cost of sales and services 2000 1999 Operating revenues: 893,746 754,731 Storm sewer charges $ 581,654 577,884 Water charges 2,909,622 2,597,734 Sewer charges 4,636,860 4,682,113 Recycling 495,300 494,126 Sale of meters 15,938 26,359 Other 368,637 354,949 Penalties 82,802 52,228 State Health 71,210 71,979 Total operating revenues 8,793,386 8,502,423 Operating expenses: Cost of sales and services 102,855 63,608 Personal services 893,746 754,731 Contractual services General costs 949,182 1,020,170 Recycling charges 455,222 421,109 Disposal charges 2,973,995 2,639,687 Commodities General costs 368,637 354,949 Water purchased 137,037 126,209 Central services .455,544 481,728 Depreciation 866,758 849,381 Total operating expenses 7,202,976 6,711,572 Operating income 1,590,410 1,790,851 Nonoperating revenues (expenses): Investment income 159,569 60,454 Miscellaneous revenue (expense) 110 1,650 Interest and fiscal charges (127,525) (83,429) Loss on disposal of capital assets (58,299) 0 Amortization of bond discount (2,958) (2,101) Total nonoperating expenses (29,103) (23,426) Net income 1,561,307 1,767,425 Add depreciation on contributed assets 443 443 Increase in retained earnings 1,561,750 1,767,868 Retained earnings — January 1 27,277,314 Retained earnings -- December 31 $ 28,839,064 25,509,446 27,277,314 Page 71 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended year ended December 31,1999) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in customer accounts receivable (Increase) decrease in assessments receivable (Increase) decrease in due from other funds (Increase) decrease in due from other governments (Increase) decrease in inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in contracts payable Increase (decrease) in accrued interest payable Increase (decrease) in due to other governments Increase (decrease) in compensated absences payable Increase in deposits payable Miscellaneous revenue Total adjustments Net cash provided (used) 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 and related financing activities: Net acquisition of capital assets Loss on disposal of capital assets Proceeds on revenue bonds Principal paid on revenue bonds Increase on bond discount Interest paid on bonds Net cash provided (used) by capital financing activities Cash flows from investing activities: Purchase of investments Increase of interest receivable Investment income Net cash used by investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Page 72 2000 1999 $ 1,590,410 1,790,851 866,758 (159,665) 28,755 3,387,000 685 (65,447) 183,343 2,556 81,393 (38,964) 208,029 110,946 36,100 110 4,641,599 6,232,009 849,381 72,776 (58,820) (3,371,663) (4,554) 7,788 (2,306) 4,501 (63,395) 83,067 (223,497) 1,765 0 1,650 (2,703,307) (912,456) 0 479,539 0 479,539 (3,006,604) (58,299) 0 (335,000) 0 (127,525) (3,527,428) (2,820,478) (43,672) 159,569 (2,704,581) Cash and cash equivalents, end of year 0 (935,592) 0 3,600,000 (420,000) (28,846) (83,429) 2,132,133 (1,759,670) 0 60,454 (1,699,216) 0 0 0 Page 73 CITY OF EDINA, MINNESOTA Liquor Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) 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 2000 1999 $ 4,440 2,993 1,051,358 979,726 2,038,517 0 614,161 $ 2,652,678 241,058 32,256 103,494 78,922 455,730 4,440 0 1,145,502 880,763 2,030,705 145,012 694,957 2,870,674 345,615 28,809 104,585 16,850 495,859 2,196,948 2,374,815 Total liabilities and retained earnings $ 2,652,678 2,870,674 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2000 (with comparative totals for year ended December 31, 1999) Operating revenues: Sales - Liquor Deposits /refunds Liquor Wine Beer Miscellaneous Total operating revenues Operating expenses: Cost of sales and services Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income Nonoperating revenues (expenses): Miscellaneous revenue (expense) Loss on disposal of capital assets Total nonoperating revenues (expenses) Income before operating transfer out Operating transfer out: Art Center Operating transfer out: Arena Operating transfer out: Revolving fund Net income (loss) Retained earnings -- January 1 Page 74 2000 1999 $ 665 2,558,895 3,650,130 2,491,806 287,984 8,989,480 6,663,033 768,795 221,260 51,094 243,612 57,609 8,005,403 984,077 243 (23,187) (22,944) 961,133 (139,000) (81,000) (919,000) (1,139,000) (177,867) 3,414 2,429,192 3,329,113 • 2,382,608 279,487 8,423,814 6,260,968 694,571 181,838 38,420 242,472 55,935 7,474,204 949,610 (1,184) (2,880) (4,064) 945,546 (155,000) (525,000) 0 (680,000) 265,546 2,374,815 2,109,269 Retained earnings— December 31 $ 2,196,948 2,374,815 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other funds Increase in inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in due to other governments Increase in compensated absences payable Miscellaneous revenue (expense) Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Decrease in advance to other funds Operating transfer (out) -Art Center Operating transfer (out )—Revolving fund Operating transfer (out )—Arena Net cash used by noncapital financing activities Cash flows from capital and related financing activities: Acquisition of capital assets Loss on disposal of capital assets Net cash used by capital financing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Page 75 2000 1999 984,077 949,730 57,609 (2,993) 94,144 (98,963) (104,557) 3,447 (1,091) 62,072 243 9,911 993,988 145,012 (139,000) (81,000) (919,000) (993,988) 55,935 611 (671,309) (6,382) 38,523 9,796 10,759 4,155 (1,304) (559,216) 390,514 328,878 (155,000) 0 (525,000) (351,122) 23,187 (36,412) (23,187) (2,880) 0 (39,292) 100 4,440 4,340 Cash and cash equivalents, end of year $ 4,440 4,440 Page 76 CITY OF EDINA, MINNESOTA Liquor Fund Schedule of Revenue and Operating Expenses by Location Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Occupancy: Personal services 1,016 5,975 2,542 Totals 7,704 Contractual services 50th Street Yorkdale Vernon 2000 1999 Operating revenues: 1,736 2,338 3,347 7,421 6,924 Sales - Liquor 20,881 23,385 13,343 57,609 55,935 Deposits /refunds $ 98 305 262 665 3,414 Liquor 424,775 1,229,522 904,598 2,558,895 2,429,192 Wine 835,591 1,653,654 1,160,885 3,650,130 3,329,113 Beer 453,403 1,240,309 798,094 2,491,806 2,382,608 Miscellaneous 54,220 129,904 103,860 287,984 279,487 Total operating revenues 1,768,087 4,253,694 2,967,699 8,989,480 8,423,814 Total administrative Operating expenses: 268,139 229,486 671,367 580,572 Total operating expenses Selling: 3,717,854 2,644,902 8,005,403 7,474,204 Operating income Cost of sales and services 1,297,385 3,153,799 2,211,849 6,663,033 6,260,968 Personal services 112,591 201,012 149,158 462,761 447,601 Contractual services 9,995 10,491 13,419 33,905 14,723 Commodities 5,342 10,452 4,503 20,297 23,856 Total selling 1,425,313 3,375,754 2,378,929 7,179,996 6,747,148 Occupancy: Personal services 1,016 5,975 2,542 9,533 7,704 Contractual services 19,959 42,263 17,255 79,477 75,921 Commodities 1,736 2,338 3,347 7,421 6,924 Depreciation 20,881 23,385 13,343 57,609 55,935 Total occupancy 43,592 73,961 36,487 154,040 146,484 Administrative: Personal services 79,631 113,208 103,662 296,501 239,266 Contractual services 25,130 50,496 32,252 107,878 91,194 Commodities 6,977 9,275 7,124 23,376 7,640 Central services 62,004 95,160 86,448 243,612 242,472 Total administrative 173,742 268,139 229,486 671,367 580,572 Total operating expenses 1,642,647 3,717,854 2,644,902 8,005,403 7,474,204 Operating income $ 125,440 535,840 322,797 984,077 949,610 Page 77 CITY OF EDINA, MINNESOTA Swimming Pool Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) Assets Current assets: Cash with fiscal agents Accounts receivable 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) 2000 $ 532,126 53 243,000 775,179 1,860,344 5,291 $ 2,640,814 2,017 27,484 31 29,532 1999 535,601 0 52,967 588,568 2,020,323 7,253 2,616,144 459 31,659 89 32,207 1,100,000 1,120,000 1,129,532 1,152,207 1,468,264 32,500 10,518 43,018 1,564,298 32,500 (132,861) (100,361) Total liabilities and fund equity $ 2,640,814 2,616,144 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Operating revenues: Sales - retail Sales - concessions Memberships Admissions Building rental Other fees Lessons Total operating revenues Operating expenses: Cost of sales and services Personal services Contractual services Commodities Central services Depreciation Total operating expenses Operating income Nonoperating revenue (expenses): Investment income Miscellaneous revenue Interest and fiscal charges Loss on disposal of capital assets Amortization of bond discount Total nonoperating expenses Income before operating transfers Operating Transfer out - General fund Net income (loss) Add depreciation on contributed assets Increase (decrease) in retained earnings Retained earnings (deficit) -- January 1 Retained earnings (deficit) -- December 31 2000 $ 196 73,625 373,798 150,091 15,397 23,858 636,965 21,756 183,178 89,917 45,892 25,464 150,519 516,726 1999 0 76,898 326,114 129,662 15,381 24,150 572,205 22,102 178,017 74,175 27,086 17,844 150,879 470,103 120,239 102,102 22,201 13,199 45 0 (55,425) (47,362) (37,752) (9,876) (1,962) (1,861) (72,893) (45,900) 47,346 56,202 0 (183,000) 47,346 (126,798) 96,033 106,669 143,379 (20,129) (100,361) (80,232) $ 43,018 (100,361) Page 78 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: Increase in accounts receivable Increase (decrease) in due from other funds Increase in accounts payable Increase (decrease) in accrued interest payable Increase (decrease) in due to other governments Miscellaneous revenue Total adjustments Net cash provided by operating activities Cash flows from noncapiital financing activities: Operating transfer out - General Fund Net cash used by noncapital financing activities Cash flows from capital and related financing activities: Net acquisition of capital assets Loss on disposal of capital assets Proceeds from revenue bonds Principal paid on revenue bonds Increase on bond discount Interest received from fiscal agent Interest paid on bonds Net cash provided (used) by capital and related financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Page 79 2000 1999 $ 120,239 102,102 150,519 150,879 (53) 0 (190,033) 12,459 1,558 172 (4,175) 14,045 (58) 33 45 0 (42,197) 177,588 78,042 279,690 0 (183,000) 0 (183,000) 9,459 (22,914) (37,752) (9,876) 0 530,000 (20,000) (20,000) 0 (4,136) 22,201 13,199 (55,425) (47,362) (81,517) 438,911 (3,475) 535,601 535,601 0 $ 532,126 535,601 Page 80 CITY OF EDINA, MINNESOTA Golf Course Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) Assets Current assets: Petty cash and change funds Cash with fiscal agents Accounts receivable Due from other funds 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. Fund Equity: Contributed capital Retained earnings: Reserved for debt service unreserved -- undesignated Total retained earnings 2000 1999 $ 4,400 2,750,600 2,459 54,973 82,111 2,894,543 4,400 2,769,110 9,292 0 61,892 2,844,694 7,145,696 7,487,735 41,043 52,792 $ 10,081,282 10,385,221 61,716 26,544 201,130 0 5,611 164,171 459,172 10,993 0 16,800 7,760,000 8,246,965 2,800 1,115,031 716,486 1,831,517 44,615 24,085 229,578 200,000 5,174 42,143 545,595 8,854 145,012 20,800 8,090,000 8,810,261 3,600 1,115,031 456,329 1,571,360 Total liabilities and retained earnings $ 10,081,282 10,385,221 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Operating revenues: 340,722 318,706 Sales - retail 1,461,937 1,251,398 Pro shop $ 338,081 286,508 Miscellaneous 8,936 11,636 Sales - concessions 297,666 297,864 Memberships 157,155 141,989 Admissions 271,716 319,414 Building rental 67,467 71,698 Rental of equipment 0 (35,000) Golf cars 304,929 300,922 Golf carts /clubs 30,776 32,756 Miscellaneous equipment 2,316 1,007 Green fees 1,974,991 1,903,497 Otherfees Driving range 424,198 359,362 Lessons 72,429 58,241 Miscellaneous 3,348 2,795 Total operating revenues 3,954,008 3,787,689 Operating expenses: Cost of sales and services 340,722 318,706 Personal services 1,461,937 1,251,398 Contractual services 459,641 458,998 Commodities 310,035 234,713 Central services 275,808 241,704 Depreciation 508,189 501,406 Total operating expenses 3,356,332 3,006,925 Operating income 597,676 780,764 Nonoperating revenues (expenses): Investment income 114,840 68,275 Miscellaneous revenue 170 43,266 Interest and fiscal charges (405,548) (376,469) Interest on capital lease (1,049) (1,241) Gain (loss) on disposal of capital assets (34,983) 40,939 Amortization of bond discount (11,749) (11,228) Total nonoperating expenses (338,319) (236,458) Income before operating transfers 259,357 544,306 Operating transfer out - Arena 0 (35,000) 0 (35,000) Net income 259,357 509,306 Add depreciation on contributed assets Increase in retained earnings Retained eamings- January 1 Retained earnings -- December 31 800 400 260,157 509,706 1,571,360 1,061,654 $ 1,831,517 1,571,360 Page 81 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Cash flows from operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable Increase in due from other funds (Increase) decrease in inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in accrued interest payable Decrease in due to other funds Increase (decrease) in due to other governments Increase in compensated absences payable Increase in deposits payable Miscellaneous 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 and related financing activities: Net acquisition of capital assets Gain (loss) on disposal of capital assets Proceeds from revenue bonds Principal paid on revenue bonds Decrease on bond discount Principal paid on capital lease Interest received from fiscal agent Interest paid on capital lease Interest paid on bonds Net cash provided (used) by capital and related financing activities Net decrease in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year 2000 Page 82 1999 597,676 780,764 508,189 6,833 (54,973) (20,219) 17,101 2,459 (28,448) (200,000) 437 122,028 2,139 170 355,716 953,392 (145,012) 0 (145,012) (166,150) (34,983) 0 (330,000) 0 (4,000) 114,840 (1,049) (405,548) (826,890) (18,510) 501,406 (2,322) 0 157 (42,930) 483 68,451 0 (1,536) 3,476 5,502 43,266 575,953 1,356,717 (328,878) (35,000) (363,878) (359,941) 40,939 2,740,000 (310,000) (21,386) (4,000) 68,275 (1,241) _ (376,469) 1,776,177 2,769,016 2,773,510 4,494 2,755,000 2,773,510 Supplemental disclosure of noncash noncapital financing activity: Contribution of fixed assets 0 4,000 Total noncash noncapital financing activity $ 0 4,000 Page 83 CITY OF EDINA, MINNESOTA Golf Course Fund Schedule of Operating Expenses Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Clubhouse Personal services 2000 1999 Administration 81,651 78,191 Personal services $ 921,268 756,387 Contractual services 243,394 257,765 Commodities 155,419 137,925 Central services 257,292 224,088 Total administration 1,577,373 1,376,165 Clubhouse Personal services 38,060 35,809 Contractual services 81,651 78,191 Commodities 16,649 16,479 Total clubhouse 136,360 130,479 Grill: 290,379 270,915 Cost of sales and services 105,075 103,643 Personal services 94,710 84,537 Contractual services 13,332 8,452 Commodities 21,997 25,680 Total grill 235,114 222,312 Golf Cars: 18,516 17,616 Personal services 34,880 34,946 Contractual services 9,697 7,394 Commodities 17,701 0 Total range and grill 62,278 42,340 Range: Personal services 129,997 105,113 Contractual services 706 1,705 Commodities 44,110 9,846 Total range and grill 174,813 116,664 Richards: Cost of sales and services 8,467 8,060 Personal services 107,246 91,881 Contractual services 12,439 14,663 Commodities 15,343 20,040 Total Richards 143,495 134,644 Pro Shop Cost of sales and services 226,965 205,679 Personal services 55,242 54,817 Contractual services 2,965 4,548 Commodities 5,207 5,871 290,379 270,915 Golf dome: Cost of sales and services 215 1,324 Personal services 80,534 87,908 Contractual services 95,457 86,280 Commodities 33,609 18,872 Central services 18,516 17,616 Total golf dome 228,331 212,000 Depreciation 508,189 501,406 Total operating expenses $ 3,356,332 3,006,925 Page 84 CITY OF EDINA, MINNESOTA Arena Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) Assets Current assets: Petty cash and change funds Cash with fiscal agents Accounts receivable Due from other funds 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 governments Compensated absences payable Total current liabilities Long -term liabilities: Deposits payable Deferred revenue Obligation under capital lease Bonds payable Total liabilities Fund equity: Contributed capital Retained earnings: Reserved for debt service Unreserved -- undesignated Total retained earnings (deficit) 2000 $ 700 2,952 108,636 568 112,856 1999 700 1,035 100,611 2,714 105,060 4,602,406 4,898,263 9,204 10,354 $ 4,724,466 5,013,677 39,683 14,902 46,105 350 68,440 169,480 3,500 5,040 151,200 1,660,000 1,989,220 3,286,798 184,591 (736,143) (551,552) 34,766 6,953 48,847 9,079 14,869 114,514 3,500 5,040 187,200 1,760,000 2,070,254 3,474,150 184,591 (715,318) (530,727) Total liabilities and retained earnings $ 4,724,466 5,013,677 Page 85 CITY OF EDINA, MINNESOTA Arena Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Operating expenses: Cost of sales and services 2000 1999 Operating revenues: 447,206 370,745 Sales - retail $ 24,720 26,152 Memberships 5,218 4,504 Admissions 82,745 70,749 Building rental 908,657 868,081 Rental of equipment 7,268 2,427 Other fees (174,245) (90,809) Lessons 94,570 92,527 Skate sharpening 13,779 14,925 Total operating revenues 1,136,957 1,079,365 Operating expenses: Cost of sales and services 65 111 Personal services 447,206 370,745 Contractual services 382,772 350,860 Commodities 60,824 47,998 Central services 99,240 80,004 Depreciation 321,095 320,456 Total operating expenses 1,311,202 1,170,174 Operating loss (174,245) (90,809) Nonoperating revenues (expenses): Miscellaneous revenue 0 17,906 Interest and fiscal charges (92,989) (98,219) Interest on capital lease (9,440) (11,168) Loss on disposal of capital assets (11,353) 0 Amortization of bond discount (1,150) (1,151) Total nonoperating expenses (114,932) (92,632) Net loss before operating transfer in (289,177) (183,441) Operating transfer in: Liquor store fund 81,000 525,000 Golf course fund 0 35,000 Total operating transfers 81,000 560,000 Net Income (loss) (208,177) 376,559 Add depreciation on contributed assets 187,352 187,352 Increase (decrease) in retained earnings (20,825) 563,911 Retained earnings (deficit)- January 1 (530,727) (1,094,638) Retained earnings (deficit) - December 31 $ (551,552) (530,727) CITY OF EDINA, MINNESOTA Arena Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: Increase in accounts receivable (Increase) decrease in due from other funds (Decrease) in accounts payable Increase in salaries payable Decrease in accrued interest payable Increase (decrease) in due to other governments Increase(decrease) in compensated absences payable Decrease in due to other funds Total adjustments Net cash provided by operating activities Cash flows from noncapital financing activities: Donations Decrease in advance from other funds Operating transfer in— Liquor Fund Operating transfer in —Golf Course Fund Net cash provided by noncapital financing activities Cash flows from capital and related financing activities: Net acquisition of capital assets Loss on disposal of capital assets Principal paid on revenue bonds Principal paid on capital lease Interest paid on capital lease Interest paid on bonds Net cash used for capital and related financing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Page 86 2000 1999 $ (174,245) (90,809) 321,095 320,456 (8,025) (17,377) 2,146 (2,714) 4,917 (2,941) 7,949 1,468 (2,742) (2,460) (8,729) 2,316 53,571 (1,941) 0 (50,000) 370,182 246,807 195,937 155,998 0 17,906 0 (479,539) 81,000 525,000 0 35,000 81,000 98,367 (25,238) (8,791) (11,353) 0 (100,000) (100,000) (36,000) (36,000) (9,440) (11,168) (92,989) (98,219) (275,020) (254,178) 1,917 187 1,735 1,548 Cash and cash equivalents, end of year $ 3,652 1,735 CITY OF EDINA, MINNESOTA Art Center Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1999) Assets 2000 Current assets: Petty cash and change funds 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: Unreserved — undesignated Total retained earnings Total liabilities and retained earnings 1999 $ 275 225 8,618 20,266 15,493 15,656 24,386 36,147 445,497 534,293 $ 469,883 570.440 16,743 13,186 4,843 4,756 735 1,020 30,405 9,795 52,726 28,757 291,926 310,301 125,231 231,382 125,231 231,382 $ 469,883 570,440 Page 87 Page 88 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Operating expenses: Cost of goods and services 2000 1999 Operating revenues: 225,619 189,170 Sales - retail $ 40,540 51,852 Memberships 26,629 25,872 Other fees 62,465 38,232 Class fees 253,313 225,236 Firing fees 12,170 11,457 Media studio fees 49,526 42,526 Misc fees 534 615 Total operating revenues 382,712 357,558 Operating expenses: Cost of goods and services 35,810 28,963 Personal services 225,619 189,170 Contractual services 187,868 158,353 Commodities 64,320 58,142 Central services 62,465 38,232 Depreciation 56,032 54,987 Total operating expenses 632,114 527,847 Operating loss (249,402) (170,289) Nonoperating revenues (expenses): Donations 21,352 17,283 Loss on disposal of capital assets (35,476) 0 Total nonoperating revenues (expenses) (14,124) 17,283 Net loss before operating transfer in (263,526) (153,006) Operating transfer in -- Liquor Store 139,000 155,000 139,000 155,000 Net Income (loss) (124,526) 1,994 Add depreciation on contributed assets 18,375 17,253 Increase (decrease) in retained earnings (106,151) 19,247 Retained eamings -- January 1 231,382 212,135 Retained earnings -- December 31 $ 125,231 231,382 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Cash flows from operating activities: Operating loss Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in due from other funds (Increase) decrease in inventory Increase (decrease) in accounts payable Increase in salaries payable Increase (decrease) in due to other governments Increase in compensated'absences payable Total adjustments Net cash used, by operating activities Cash flows from noncapital financing activities: Donations Operating transfer in— Liquor Store Net cash provided by noncapital financing activities Cash flow from capital and related financing activities: Net acquisition of capital assets Loss on disposal of capital assets Net cash used by capital and related financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Page 89 2000 1999 (249,402) 56,032 11,648 163 3,557 87 (285) 20,610 91,812 (157,590) (170,289) 54,987 (20,266) (382) (27,849) 649 156 2,872 10,167 (160,122) 21,352 17,283 139,000 155,000 160,352 172,283 32,764 (12,717) (35,476) 0 (2,712) (12,717) 50 (556) 225 275 781 225 Supplemental disclosure of noncash noncapital financing activity: Contribution of fixed assets 0 4,181 Total noncash noncapital financing activity $ 0 4,181 Page 90 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Balance Sheet December 31, 2000 (with comparative amounts for December 31, 1'999) Assets 2000 Current assets: Cash 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: Unreserved -- undesignated Total retained earnings $ 0 1,500 820 374 63,314 22,432 88,440 1999 1,503 1,500 288 56,313 0 21,821 81,425 793,827 988,305 $ 882,267 1,069,730 26,474 17,824 3,959 78,099 126,356 38,590 17,700 1,901 25,698 83,889 42,000 52,000 168,356 135,889 654,193 804,156 59,718 129,685 59,718 129,685 Total liabilities and retained earnings $ 882,267 1,069,730 Page 91 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Operating expenses: Cost of sales and services 2000 1999 Operating revenues: 665,159 608,403 Sales - concessions $ 25,062 16,275 Memberships 21,179 22,369 Admissions 58,155 61,219 Building rental 198,650 174,586 Rental of equipment 53,760 40,086 Green fees 181,447 142,759 Other fees Programs 23,099 19,137 Association fees 410,497 356,855 Miscellaneous 350 400 . Total operating revenues 972,199 833,686 Operating expenses: Cost of sales and services 10,643 9,797 Personal services 665,159 608,403 Contractual services 363,495 330,295 Commodities 158,701 147,924 Central services 202,368 191,244 Depreciation 171,869 170,643 Total operating expenses 1,572,235 1,458,306 Operating loss (600,036) (624,620) Nonoperating revenues (expenses): Investment income 322,663 266,127 Miscellaneous revenue 87 5,655 Interest on capital lease (2,622) (3,102) Loss on disposal of capital assets (48,022) (547) Total nonoperating revenues 272,106 268,133 Net loss before operating transfers (327,930) (356,487) Operating transfer in - General Fund 108,000 206,000 Total operating transfers 108,000 . 206,000 Net loss (219,930) (150,487) Add depreciation on contributed assets 149,963 136,017 Decrease in retained earnings (69,967) (14,470) Retained earnings -- January 1 129,685 144,155 Retained earnings -- December 31 $ 59,718 129,685 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Cash Flows Year ended December 31, 2000 (with comparative amounts for year ended December 31, 1999) Cash flows from operating activities: Operating loss Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense Changes in assets and liabilities: (Increase) decrease in accounts receivable (Increase) decrease in due from other funds (Increase) decrease in accounts payable Increase in salaries payable Increase in due to other government Increase (decrease) in compensated absences payable Miscellaneous revenue Total adjustments Net cash used by operating activities Cash flows from noncapital financing activities: Operating transfer in - General Fund Net cash provided by noncapital financing activities Cash flow from capital financing activities: Net acquisition of capital assets Loss on disposal of capital 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 Page 92 2000 1999 $ (600,036) (624,620) 171,869 55,939 (611) (12,116) 1.24 2,058 52,401 87 269,751 (330,285) 170,643 (53,563) 788 14,941 980 253 1,186 5,655 140,883 (483,737) 108,000 206,000 108,000 206,000 22,609 (21,859) (48,022) (547) (10,000) (10,000) (2,622) (3,102) (38,035) (35,508) (63,314) 48,674 322,663 266,127 259,349 314,801 (971) 1,556 3,291 1,735 Cash and cash equivalents, end of year $ 2,320 3,291 Page 93 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 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. 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. CITY OF EDINA, MINNESOTA Trust and Agency Funds Combining Balance Sheet Year ended December 31, 2000 (with comparative totals for December 31, 1999) Assets: Cash Cash and investments with plan administrators Total assets Liabilities: Expendable Trust Agency Deferred Police Compensation Seizure Page 94 Totals 2000 1999 $ 0 140,432 140,432 191,965 3,999,778 0 3,999,778 3,913,274 $ 3,999,778 140,432 4,140,210 4,105,239 Due to other funds $ 0 41,678 41,678 41,678 Due to other governments 0 98,754 98,754 150,287 Total liabilities 0 140,432 140,432 191,965 Fund balance: Reserved for deferred compensation plan participants 3,999,778 0 3,999,778 3,913,274 Total liabilities and fund balances $ 3,999,778 140,432 4,140,210 4,105,239 Page 95 CITY OF EDINA, MINNESOTA Deferred Compensation Expendable Trust Fund Balance Sheet Year ended December 31, 2000 (with comparative totals for December 31, 1999) Assets: Cash and cash equivalents Liabilities and fund balances: Fund balance: 111 $ 3,999,778 1999 3,913,274 Reserved for deferred compensation plan participants $ 3,999,778 3,913,274 Page 96 CITY OF EDINA, MINNESOTA Deferred Compensation Expendable Trust Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended December 31, 2000 (with comparative totals for December 31, 1999) 2000 1999 Revenues: Net appreciation in fair value of investments $ (116,184) 579,053 Employee contributions 311,157 291,458 Total revenues 194,973 870,511 Expenditures: Distributions to plan participants 102,254 47,455 Administrative expense 6,215 5,630 Total expenditures 108,469 53,085 Excess of revenues over expenditures 86,504 817,426 Fund balance - January 1 3,913,274 3,095,848 Fund balance - December 31 $ 3,999,778 3,913,274 CITY OF EDINA, MINNESOTA Agency Funds Combining Statement of Changes in Assets and Liabilities Police Seizure Fund Assets: Cash Liabilities: Due to other funds Due to other governments Year ended December 31, 2000 Balance 1/1/00 Additions Deductions Page 97 Balance 12/31/00 $ 191,965 0 51,533 140,432 41,678 0 0 41,678 150,287 0 51,533 98,754 $ 191,965 0 51,533 140,432 Page 98 GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group provides for the accounting of fixed assets other than those accounted for in the Enterprise Funds. Page 99 CITY OF EDINA, MINNESOTA General Fixed Assets Account Group Schedule of General Fixed Assets December 31, 2000 (with comparative amounts for December 31, 1999) 2000 1999 General fixed assets: Land and land improvements $ 35,833,521 35,843,819 Buildings 20,684,526 20,637,734 Furniture and fixtures 1,155,256 1,343,763 Vehicles and equipment 10,288,763 10,576,211 Parks 16,293,082 15,979,022 Construction -in- progress 6,706,314 746,284 Total general fixed assets $ 90,961,462 85,126,833 Total investment in general fixed assets $ 90,961,462 85,126,833 Page 100 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long -term Debt Account Group is used to account for the long -term debt of the City other than debt recorded in the Enterprise Funds. Primarily, these are general obligations and other forms of long -term debt supported by general revenues and special assessments, and are obligations of a governmental unit as a whole and not its individual constituent funds. CITY OF EDINA, MINNESOTA General Long -term Debt Account Group Schedule of General Long -term Debt December 31, 2000 (with comparative amounts for December 31, 1999) Amount available and to be provided for the retirement of long -term debt: General Obligation Bonds: 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 101 2000 1999 $ 66,670,000 7,976,010 170,000 2,220,886 50,260,000 8,309,899 350,000 612,972 $ 77,036.896 59,532.871 2,220,886 612,973 426,010 484,898 74,390,000 58,435,000 Total general long -term debt payable $ 77.036.896 59.532.871 Page 102 CITY OF EDINA, MINNESOTA Combined Schedule of Bonded Indebtedness December 31, 2000 Revenue Bonds: Recreation Bonds, Series 1992A 4.00-6.05 11/01/92 Final Recreation Refunding Bonds, Series 1992C Interest Issue maturity Utility Revenue Bonds, 1999A rate date date Bonded indebtedness: 3.70-4.45 05/03/99 01/01/13 Tax Increment Bonds: Tax Increment Refunding Bonds, Series 1992B 4.90-6.00 11/01/92 02/01/09 Tax Increment Refunding Bonds, Series 1993A 4.25-5.10 04/13/93 02/01/06 Tax Increment Refunding Taxable Bonds, Series 1996A 5.85-6.25 03/01/96 02/01/09 Tax Increment Bonds, Series 1997B 4.50-5.50 04/01/97 02/01/13 Tax Increment Bonds, Series 2000A 4.30-4.80 09/06/00 02/01/11 Taxable Tax Increment Bonds, Series 2000B 6.45 09/06/00 02101/03 Tax Increment Refunding Bonds, Series 2000C 4.50-4.65 11/06/00 02/01/09 General Obligation Bonds: General Obligation Park & Rec Bonds, Series 1996B 4.25-5.75 08/01/96 02/01/17 Improvement Bonds: Improvement Refunding Bonds, Series 1992E 4.00-5.20 11/01/92 02101/01 Revenue Bonds: 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 Revenue Bonds, 1999A 3.20-4.20 05/03/99 02/01/09 Recreational Facility Bonds, 1999B 3.70-4.45 05/03/99 01/01/13 Total bonded indebtedness 2000 Percent paid by tax I-A- Page 103 Exhibit 1 Indebtedness Authorized Due in 2001 and. issued Redeemed Outstanding Principal Interest None 17,930,000 1,330,000 16,600,000 790,000 940,185 None 19,580,000 6,505,000 13,075,000 1,680,000 613,760 None 11,250,000 1,125,000 10,125,000 650,000 597,725 None 5,090,000 225,000 4,865,000 150,000 250,330 None 2,620,000 0 2,620,000 0 109,296 None 3,565,000 0 3,565,000 0 210,781 None 15,820,000 0 15,820,000 0 483,894 75,855,000 9,185,000 66,670,000 3,270,000 3,205,971 None 8,090,000 540,000 7,550,000 300,000 398,888 8,090,000 540,000 7,550,000 300,000 398,888 None 1,095,000 925,000 170,000 170,000 4,420 1,095,000 925,000 170,000 170,000 4,420 None 3,975,000 455,000 3,520,000 135,000 202,505 None 4,650,000 920,000 3,730,000 335,000 204,113 None 3,600,000 335,000 3,265,000 310,000 121,335 None 3,270,000 0 3,270,000 0 136,490 15,495,000 1,710,000 13,785,000 780,000 664,443 S 100,535,000 12,360,000 88,175,000 4,520,000 4,273,722 Tax Increment Bonds General Obligation Bonds Improvement Bonds Revenue Bonds CITY OF EDINA, MINNESOTA Schedule of Changes in Bonded Indebtedness Year ended December 31, 2000 Balance January 1 Issued Redeemed $ 50,260,000 7,825,000 350,000 14,570,000 22,005,000 0 0 0 5,595,000 275,000 180,000 785,000 Page 104 Exhibit 2 Balance December 31 66,670,000 7,550,000 170,000 13,785,000 $ 73.005.000 22.005.000 6.835.000 88.175.000 Page 105 Exhibit 3 CITY OF EDINA, MINNESOTA Tax Increment Bonds: $17,930,000 Tax Increment Refunding Bond, Series 1992B $790,000. $1,125,000. $1,265,000. $1,410,000. $1,470,000. $1,635,000. $2,490,000. $3,090,000. $3,325,000. $19,580,000 Tax Increment Refunding Bond, Series 1993A $1,680,000. $2,415,000. $2,455,000. $2,230,000. $2,555,000. $1,740,000. $11,250,000 Tax Increment Taxable Refunding Bond, Series 1996A $650,000 $700,000 $800,000 $900,000 $900,000 $1,000,000 $1,475,000 $1,800,000 $1,900,000 Schedule of Bonds Payable December 31, 2000 Issue Interest Maturity Principal date rate date amount 11/1/92 5.20 2/1/01 790,000 5.40 2/1/02 1,125,000 5.50 2/1/03 1,265,000 5.60 2/1/04 1,410,000 5.70 2/1/05 1,470,000 5.80 2/1/06 1,635,000 5.90 2/1/07 2,490,000 5.95 2/1/08 3,090,000 6.00 2/1/09 3,325,000 16,600,000 5/11/93 4.75 2/11/01 1,680,000 4.90 2/1/02 2,415,000 5.00 2/1/03 2,455,000 5.10 2/1/04 2,230,000 5.10 2/1/05 2,555,000 5.10 2/1/06 1,740,000 13,075,000 3/1/96 5.85 2/1/01 650,000 5.85 2/1/02 700,000 5.85 2/1/03 800,000 6.00 2/1/04 900,000 6.10 2/1/05 900,000 6.10 2/1/06 1,000,000 6.15 2/1/07 1,475,000 6.20 2/1/08 1,800,000 6.25 2/1/09 1,900,000 10,125,000 Bonds maturing in the year 2002 through 2009 will be called February 1, 2001. (Continued) Page 106 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued (Continued) Issue Interest Maturity Principal date rate date amount $5,090,000 Tax Increment Temporary Bond, Series 1997B 4M97 $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 2/1/06 405,000 $425,000 5.15 2/1/07 425,000 $445,000 5.20 211/08 445,000 $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 4,865,000 $2,620,000 Tax Increment Bond, Series 2000A 9/6/00 $0 0.00 2/1/01 0 $210,000 4.30 2/1/02 210,000 $220,000 4.35 2/1/03 220,000 $230,000 4.40 2/1/04 230,000 $240,000 4.45 2/1/05 240,000 $255,000 4.50 2/1/06 255,000 $265,000 4.55 2/1/07 265,000 $280,000 4.60 2/1/08 280,000 $290,000 4.65 2/1/09 290,000 $305,000 4.70 2/1/10 305,000 $325,000 4.80 2/1/11 325,000 2,620,000 $3,565,000 Tax Increment Taxable Bond, Series 2000B 9/6/00 $0 0.00 2/1/01 0 $0 0.00 2/1/02 0 $3,565,000 6.45 2/1/03 3,565,000 3,565,000 $15,820,000 Tax Increment Refunding Bond, Series 2000C 11/6/00 $0 2/1/01 0 $1,070,000 2/1/02 1,070,000 $1,325,000 2/1/03 1,325,000 $1,460,000 2/11/04 1,460,000 $1,505,000 2/1/05 1,505,000 $1,655,000 2/1/06 1,655,000 $2,490,000 2/1/07 2,490,000 $3,060,000 2/1/08 3,060,000 $3,255,000 2/1/09 3,255,000 15,820,000 Total tax increment bonds 66,670,000 (Continued) Page 107 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued Improvement Bonds: $900,000 Improvement Refunding Bonds, Series 1992E 11/1/92 $170,000. 5.20 2/1/01 170,000 Total Improvement Bonds 170,000 Revenue Bonds: Issue Interest Maturity Principal $3,975,000 Recreational Facility date rate date amount General Obligation Bonds: 11/1/92 $8,090,000 General Obligation Park & Rec 5.20 1/1/01 135,000 Bond, Series 1996B 8/1/96 1/1/02 170,000 $300,000 4.50 2/1/01 300,000 $300,000 4.65 2/1/02 300,000 $325,000 4.80 211/03 325,000 $325,000 4.90 2/1/04 325,000 $350,000 5.00 2/1105 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 5.55 211/12 500,000 $525,000 5.60 2/1/13 525,000 $550,000 5.65 2/1/14 550,000 $600,000 5.70 2/1/15 600,000 $625,000 5.75 2/1/16 625,000 $650,000 5.75 211/17 650,000 Total General Obligation Bonds 7,550,000 Improvement Bonds: $900,000 Improvement Refunding Bonds, Series 1992E 11/1/92 $170,000. 5.20 2/1/01 170,000 Total Improvement Bonds 170,000 Revenue Bonds: $3,975,000 Recreational Facility Bonds, Series 1992A '* 11/1/92 $135,000 5.20 1/1/01 135,000 $170,000 5.40 1/1/02 170,000 $200,000 5.50 1/1/03 200,000 $235,000 5.60 1/1/04 235,000 $250,000 5.70 1/1/05 250,000 $260,000 5.80 1/1/06 260,000 $275,000 5.90 1/1/07 275,000 $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 ** Bonds maturing in the years 2003 through 2013 will be called on January 1, 2002. 3,520,000 (Continued) Page 108 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued 3,265,000 $3,270,000 Recreational Facility Revenue Bonds, Series 1999B Issue Interest Maturity Principal 3.70 date rate date amount $4,650,000 Recreational Facility 255,000 $270,000 3.90 1/11/05 Refunding Bonds, Series 1992C 11/1/02 4.00 1/11/06 270,000 $335,000 4.10 5.20 1/11/01 335,000 $360,000 1/1/08 5.40 1/11/02 360,000 $365,000 310,000 5.50 1/1/03 365,000 $380,000 $335,000 5.60 1/11/04 380,000 $410,000 4.40 5.70 1/11/05 410,000 $435,000 1/1/13 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 3,730,000 $3,600,000 Utility Revenue Revenue Bond, Series 1999A 5/3/99 $310,000 3.50 2/1/01 310,000 $325,000 3.60 2/1/02 325,000 $335,000 3.70 2/1/03 335,000 $345,000 3.80 2/1/04 345,000 $360,000 3.85 211/05 360,000 $375,000 4.00 2/1/06 375,000 $390,000 4.00 2/1/07 390,000 $405,000 4.10 2/1/08 405,000 $420,000 4.20 2/1/09 420,000 3,265,000 $3,270,000 Recreational Facility Revenue Bonds, Series 1999B 5/3/99 $220,000 3.70 1/1/03 220,000 $265,000 3.80 1/1/04 255,000 $270,000 3.90 1/11/05 265,000 $290,000 4.00 1/11/06 270,000 $295,000 4.10 1/11/07 290,000 $310,000 4.20 1/1/08 295,000 $320,000 4.30 1/1/09 310,000 $320,000 4.35 1/11/10 320,000 $335,000 4.35 1/1/11 335,000 $345,000 4.40 1/11/12 345,000 $365,000 4.45 1/1/13 365,000 3,270,000 Total revenue bonds 13,785,000 Total bonds payable 88,175,000 Exhibit 4 CITY OF EDINA, MINNESOTA Schedule of Debt Service Requirements December 31, 2000 Year Tax Increment Bonds General Obligation Bonds Improvement Bonds Revenue Bonds Ended Principal Interest Principal Interest Principal Interest Principal Interest 2001 3,270,000 3,205,971 300,000 398,888 170,000 4,420 780,000 664,443 2002 5,695,000 3,245,195 300,000 385,163 0 0 855,000 626,638 2003 9,830,000 2,828,406 325,000 370,388 0 0 1,120,000 580,673 2004 6,455,000 2,387,601 325,000 354,625 0 0 1,215,000 526,248 2005 6,920,000 2,040,765 350,000 337,913 0 0 1,285,000 466,720 2006 6,690,000 1,685,165 375,000 319,600 0 0 1,340,000 402,758 2007 7,145,000 1,317,030 375,000 300,288 0 0 1,400,000 334,718 2008 8,675,000 888,368 400,000 279,938 0 0 1,480,000 262,031 2009 9,235,000 398,381 425,000 257,863 0 0 1,540,000 184,543 2010 795,000 124,360 450,000 234,125 0 0 640,000 128,198 2011 840,000 82,631 475,000 208,800 0 0 675,000 94,067 2012 545,000 46,340 500,000 181,863 0 0 705,000 58,015 2013 575,000 15,813 525,000 153,288 0 0 750,000 19,767 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 $ 66,670,000 18,266,027 7,550,000 4,070,231 170,000 4,420 13,785,000 4,348,816 T m 0 m Page 110 Exhibit 5 CITY OF EDINA, MINNESOTA Assessed Valuation, Tax Levies and Mill Rates (shown by year of tax collectibility) 1997 1998 1999 2000 2001 Assessed valuation /tax capacity $ 91,586,990 87,726,810 85,963,836 90,806,947 99,650,358 Increment valuation (5,517,147) (5,729,884) (6,230,928) (7,087,107) (8,559,204) Contribution to fiscal disparities pool (8,385,640) (6,451,992) (7,511,473) (9,014,784) (10,127,351) Received from fiscal disparities pool 2,402,957 2,217,217 2,199,224 2,460,913 2,752,149 Taxable valuation $ 80,087,160 77,762,151 74,420,659 77,165,969 83,715,952 Tax levies: General Fund $ 12,531,244 13,099,140 13,284,962 13,650,158 14,438,346 Tax Capacity.Rate: General Fund $ 15.626 16.813 17.810 17.669 17.233 STATISTICAL SECTION Table 1 CITY OF EDINA, MINNESOTA General Governmental Expenditures by Function (a) Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Unallocated Fiscal General Public Public general Capital Debt year government safety works Parks expenditures Other outlay service Total 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 1999 2,527,547 8,516,673 3,744,124 2,240,730 366,332 1,005,781 5,599,636 6,537,266 30,538,089 2000 2,635,357 8,846,360 3,672,057 2,150,588 346,099 1,576,968 8,352,494 6,658,601 34,238,524 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. v w m J Table 2 CITY OF EDINA, MINNESOTA General Governmental Revenues by Source (a) Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. d CD CD 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 oovemmental services forfeitures Investments agent property Miscellaneous Totals 1991 14,425,200 980,689 133,680 850,897 580,581 1,287,524 437,433 875,320 0 124,149 437,429 20,132,882 1992 15,935,816 1,563,993 168,122 820,007 1,000,395 1,360,233 471,038 424,622 0 100,000 3,107,110 24,951,336 1993 17,505,272 991,394 260,039 1,037,783 1,749,631 1,167,446 350,582 431,976 1,443,530 100,765 205,432 25,243,850 1994 17,637,458 1,087,831 206,261 947,122 1,807,826 1,251,603 322,992 591,985 1,727,103 174,970 1,016,605 26,771,756 1995 15,534,902 858,897 209,519 1,070,352 5,693,802 1,510,470 545,996 411,345 1,742,621 68,871 591,318 28,238,093 1996 16,089,705 969,468 224,489 1,382,427 3,928,352 1,621,635 456,589 950,129 1,175,976 108,111 292,018 27,198,899 1997 17,653,621 955,206 331,527 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 20,567,867 844,070 296,427 2,091,365 2,551,452 1,833,148 691,355 1,353,521 43,331 86,839 604,099 30,963,274 1999 21,995,230 990,330 297,866 2,135,541 3,185,008 2,070,476 794,710 415,114 0 284,085 478,788 32,847,148 2000 22,904,512 1,159,876 336,678 1,835,828 1,880,680 2,902,668 967,421 2,287,349 88,788 1,156,526 96,932 35,617,256 Note: (a) Includes General, Special Revenue, Debt Service and Capital Project Funds. d CD CD Table 3 CITY OF EDINA, MINNESOTA Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) T o� m 1 J w Abftw.�.-, 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 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% 1999 13,284,962 13,147,288 98.96% 36,293 13,183,581 99.24% 99,202 0.75% 2000 13,650,158 13,554,044 99.30% 15,355 13,569,399 99.41% 116,362 0.85% T o� m 1 J w Abftw.�.-, Page 114 Table 4 CITY OF EDINA, MINNESOTA Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Ratio of total Real property assessed value/ tax capacity to Assessment Assessed value/ Estimated total estimated year tax capacity market value market value 1991 87,214,668 3,496,892,900 2.49% 1992 83,480,350 3,568,897,100 2.34% 1993 81,413,953 3,607,576,600 2.26% 1994 82,244,215 3,733,888,400 2.20% 1995 84,055,819 3,849,796,600 2.18% 1996 85,775,887 4,071,654,134 2.11% 1997 91,586,990 4,074,713,634 2.25% 1998 87,726,810 4,267,758,501 2.06% 1999 85,963,836 4,535,761,900 1.90% 2000 90,055,752 4,861,730,000 1.85% Page 115 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 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 1999 17.810 - 17.810 50.766 40.994 8.553 118.123 2000 17.669 - 17.669 51.678 39.655 8.426 117.428 Table 6 CITY OF EDINA, MINNESOTA Special Assessment Collections Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) v d m rn 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 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 1999 773,251 753,251 97.41% 14,273 767,524 99.26% 38,784 2000 960,562 930,484 96.87% 5,586 936,070 97.45% 63,275 v d m rn Fiscal year "Population 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) Net assessed value /tax Gross capacity (in bonded thousands) debt (b) Debt service monies Net bonded available debt Ratio of net bonded debt to assessed value /tax capacity Table 7 Net bonded debt per capita 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 1999 47,235 77,191 73,005,000 4,384,419 68,620,581 88.90% 1,453 2000 47,425 (a) 83,716 88,175,000 20,144,460 68,030,540 81.26% 1,434 "Source: Metropolitan Council estimate Notes: (a) Official population per 2000 census. (b) Includes all long -term general obligation debt. d 0. Page 118 Table 8 CITY OF EDINA, MINNESOTA Computation of Overlapping Debt December 31, 2000 (Unaudited - see accompanying auditors' report) Percentage Amount applicable applicable Net debt to City of to City of Jurisdiction outstanding Edina Edina City of Edina $ 57,874,958 100.00% $ 57,874,958 Hennepin County 216,028,146 7.48% 16,158,905 ISD #273 (Edina) 35,811,780 97.01% 34,741,008 ISD #270 (Hopkins) 41,330,781 7.31% 3,021,280 ISD #271 (Bloomington) 106,229,731 0.01% 10,623 ISD #272 (Eden Prairie) 130,191,019 1.21% 1,575,311 ISD #280 (Richfield) 49,644,185 24.93% 12,376,295 ISD #283 (St. Louis Park) 12,033,074 0.01% 1,203 Metro Council 115,003,645 3.80% 4,370,139 Hennepin County Regional Parks 12,026,336 9.88% 1,188,202 $ 131.317.924 Page 119 Table 9 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 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 23,128,537 27.16% 1997 2,120,000 4,502,948 6,622,948 24,000,082 27.60% 1998 2,224,724 4,099,809 6,324,533 25,390,000 24.91% 1999 3,275,000 3,262,266 6,537,266 25,131,088 26.01% 2000 3,550,000 3,108,601 6,658,601 25,814,880 25.79% Notes: (a) Includes General, Special Revenue, and Debt Service Funds. Table 10 CITY OF EDINA, MINNESOTA Revenue Bond Coverage Last Ten Fiscal Years (Unaudited - see accompanying auditors' report) Net revenue Direct* available Gross operating for debt Debt service requirements Fiscal year revenue expenses service Principal Interest Total Coverage Utility Bond 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 1999 8,502,423 6,713,673 1,788,750 420,000 83,429 503,429 355 2000 8,793,386 7,205,934 1,587,452 335,000 127,525 462,525 343 Recreational Facility Bonds 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 1999 5,141,606 4,332,932 808,674 430,000 522,050 952,050 85 2000 5,727,930 5,209,610 518,320 450,000 553,962 1,003,962 52 *Before interest costs. CD J N O Table 11 CITY OF EDINA, MINNESOTA Property and Construction Values Last Ten Fiscal years (Unaudited - see accompanying auditors' report) 'Assessors estimated market value -o m co m N Commercial Residential construction construction Fiscal Number of Number of Property value' year permits Value permits Value Commercial /Industrial Residential /Apartments 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 1999 323 36,708,942 3,478 27,637,742 980,837,900 3,924,031,400 2000 1418 66,980,499 4,013 48,278,737 1,069,928,100 4,387,874,100 'Assessors estimated market value -o m co m N Page 122 Table 12 CITY OF EDINA, MINNESOTA Principal Taxpayers December 31, 2000 (Unaudited - see accompanying auditors' report) 2000 tax Taxpayer Type of Business capacity. Southdale Shopping center $ 4,906,659 Gabberts and Galleria Shopping center 1,614,622 Pentagon Office Park Office building 1,560,591 Southdale Office Park Office building 1,359,207 United Health Care Corporation Office building 882,609 National Car Office Building 957,300 Southdale Medical Building Office building 716,706 Cedars of Edina Apartments 710,438 Centennial Lakes Retail Retail 663,442 Edinborough Plaza Apartments 508,820 Target Retail 432,156 Jerry's Center Retail 375,437 Edinborough Office East Office building 355,762 Durham Apartments 396,293 York Plaza Apartments 394,519 Hawthorne Suites Hotel Hotel 329,017 7600 France Office building 342,821 7301 Ohms La Office building 319,242 7373 France Medical Office 344,793 7317 Cahill Industrial 292,824 Employer Fairview Southdale Hospital Jerry's Enterprises Inc. Golden Valley Microwave Foods Health Risk Management Inc. Dayton's J.C. Penney Norwest Funding Nash Finch Co. International Dairy Queen Inc. Roach Organization Inc. Techpower Inc. CITY OF EDINA, MINNESOTA Major Employers in the City December 31, 2000 (Unaudited - see accompanying auditors' report) Product/Service Health Care Groceries Manufacturing Pension, Health and Welfare Funds Department Store Department Store Mortgage Bankers & Correspondents Groceries Eating Places Computer & Computer Software Stores Help Supply Services Source: City of Edina "Community Profile" Minnesota Department of Trade and Economic Development 1999 Page 123 Table 13 Approximate Number of Employees 2,400 2,000 650 552 500 400 358 350 300 140 120 CITY OF EDINA, MINNESOTA Labor Force Data December 31, 2000 (Unaudited - see accompanying auditors' report) December 2000 Civilian Unemployment Labor Force Rate Page 124 Table 14 December 1999 Civilian Unemployment Labor Force Rate Hennepin County 666,108 2.4% 655,689 1.9% Mpls. -St. Paul MSA 1,751,767 2.7% 1,707,123 2.2% State of Minnesota 2,772,628 3.7% 2,706,421 3.1% Source: Minnesota Department of Economic Security. 1999 data is preliminary. CITY OF EDINA, MINNESOTA Miscellaneous Statistics December 31, 2000 (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) 30 Police protection: Number of stations 1 Number of employees (full time) 64 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 125 Table 15 (Continued) Page 126 Table 15, 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 1999 (estimated June 1999) 47,235 2000 (census) 47,425 Page 127 Table 16 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, 2000 Accounted Original Amended for in Current Amount budget budget prior years year remaining Sources of funds: Bond proceeds $ 2,200,000 5,280,000 5,251,998 0 28,002 Tax increments received 0 31,748,489 16,310,824 1,441,522 13,996,143 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 0 268,524 268,524 0 0 Community develop- ment 0 186,064 186,064 0 0 Interest on invested funds 0 2,000,000 1,674,001 437,641 (111,642) Other 0 73,881 73,881 0 0 Total sources of funds 3,000,000 41,467,707 25,083,450 1,879,163 14,505,094 Uses of funds: Land acquisition 0 873,061 873,061 0 0 Installation of public utilities and improvements 3,000,000 7,867,034 5,862,998 1,999,034 .5,002 Bond payments Principal 0 5,280,000 2,200,000 0 3,080,000 Interest 0 4,738,329 3,572,074 158,450 1,007,805 Administrative costs 0 1,230,000 1,120,739 41,740 67,521 Paid to other governments 0 21,000 6,940 1,833 12,227 Work orders 0 16,257 16,257 0 0 Contingencies 0 11,644 11,644 0 0 Interest 0 463,037 463,037 0 0 Miscellaneous 0 62,095 62,095 0 0 Transfer 0 10,000,000 0 2,972,644 7,027,356 Total uses of funds 3,000,000 30,562,457 14,188,845 5,173,701 11,199,911 Funds remaining (or deficient) 0 10,905,250 10,894,605 (3,294,538) 3,305,183 Cost to authority Price paid by developer 'Real estate sales Liquor store site $ 128,064 105,002 Union oil site 134,506 65,780 $ 262,570 170,782 Page 128 Table 17 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, 2000 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 34,648,334 3,514,203 36,837,463 Real estate sales' 598,005 3,000,000 2,642,115 0 357,885 Loan proceeds 0 1,321,096 0 0 1,321,096 Community develop- ment Block Grant 0 189,221 189,221 0 0 Interest on invested funds 0 3,500,000 2,342,999 153,102 1,003,899 Other 0 50,000 1,357 0 48,643 Total sources of funds 6,763,182 104,530,317 60,043,878 3,667,305 40,819,134 Uses of funds: Land acquisition 6,682,998 12,200,000 6,894,303 0 5,305,697 Installation of public utilities and improvements 0 16,000,000 14,278,823 0 1,721,177 Site improvements or preparation costs 2,885,484 2,000,000 468,098 0 1,531,902 Bond payments Principal 0 21,470,000 11,675,000 1,410,000 8,385,000 Interest 0 20,100,000 18,109,222 498,340 1,492,438 Administrative costs 194,700 1,800,000 1,673,387 8,004 118,609 Paid to other governments 0 110,000 23,826 8,702 77,472 Transfers out 0 17,000,000 5,474,234 1,132,078 10,393,688 Interest reduction 0 1,850,000 0 0 1,850,000 Parkland dedication fees 0 767,852 767,852 0 0 Total uses of funds 9,763,182 93,297,852 59,364,745 3,057,124 30,875,983 Funds remaining (or deficient) (3,000,000) 11,232,465 679,133 610,181 9,943,151 Cost to authority Price raid 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 1,318,103 1,318,103 $ 3,000,385 2,654,014 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, 2000 Sources of funds: Bond proceeds Tax increments received Real estate sales Interest on invested funds Other Total sources of funds Uses of funds: Land acquisition Installation of public utilities and improvements Bond payments Principal Interest Administrative costs Total uses of funds Funds remaining (or deficient) Page 129 Table 18 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ 4,500,000 8,400,000 4,471,603 3,604,312 324,085 0 26,495,107 6,932,942 703,666 18,858,499 0 4,700,000 0 0 4,700,000 0 300,000 299,830 180,074 (179,904) 0 0 66,299 0 (66,299) 4,500,000 39,895,107 11,770,674 4,488,052 23,636,381 0 6,100,000 2,784,785 0 3,315,215 4,310,000 16,702,000 3,286,127 758,520 12,657,353 0 8,400,000 1,250,000 200,000 6,950,000 0 7,140,000 1,540,088 157,342 5,442,570 190,000 1,553,107 950,641 312,579 289,887 4,500,000 39,895,107 9,811,641 1,428,441 28,655,025 $ 0 0 1,959,033 3,059,611 (5,018,644) Page 130 Table 19 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, 2000 Uses of funds: Land acquisition 13,900,000 22,981,425 Accounted 0 0 Installation of public Original Amended for in Current Amount utilities and improvements budget budget prior years year remaining Sources of funds: Bond proceeds $ 41,400,000 41,400,000 33,761,679 0 7,638,321 Tax increments 38,000,000 38,000,000 23,441,736 1,869,443 12,688,821 received 80,000,000 90,000,000 11,788,703 2,930,922 75,280,375 Real estate sales' 5,000,000 11,637,070 11,637,070 0 0 Special assessment 0 1,321,096 0 0 1,321,096 Interest on invested 0 2,030,345 2,030,345 0 0 funds 0 2,500,000 2,181,612 3,132 315,256 Transfer in 0 28,000,000 6,585,457 4,104,722 17,309,821 Sale of material 0 255,710 255,710 0 0 Developer payments 0 297,826 297,826 0 0 Other 0 20,000 59,091 445 (39,536) Total sources of Retail and theater site $ 3,213,720 funds 126,400,000 175,431,702 66,567,148 7,039,221 101,825,333 Uses of funds: Land acquisition 13,900,000 22,981,425 22,981,425 0 0 Installation of public utilities and improvements 26,677,000 25,871,230 13,423,059 3,087,433 9,360,738 Bond payments Principal 41,400,000 41,400,000 2,659,724 1,485,000 37,255,276 Interest 38,000,000 38,000,000 23,441,736 1,869,443 12,688,821 Administrative costs 1,140,800 1,600,000 1,094,262 119,158 386,580 Paid to other governments 0 42,000 5,615 2,468 33,917 Loan/note interest 0 14,684,711 334,877 475,719 13,874,115 Parkland dedication 0 2,030,345 2,030,345 0 0 Total uses of funds 121,117,800 146,609,711 65,971,043 7,039,221 73,599,447 Funds remaining (or deficient) $ 5,282,200 28,821,991 596,105 0 28,225,886 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 Office building #5 1,803,714 1,803,714 $ 11,637,070 11,637,070 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, 2000 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 131 Table 20 Accounted Original Amended for in Current Amount budget budget prior years year remaining $ 1,911,000 1,911,000 0 0 1,911,000 2,177,855 2,177,855 746,863 0 1,430,992 0 0 44,242 36,143 (80,385) 0 0 0 0 0 4,088,855 4,088,855 791,105 36,143 3,261,607 529,400 529,400 0 0 529,400 325,000 325,000 89,468 0 235,532 150,000 150,000 0 0 150,000 160,000 160,000 0 0 160,000 150,000 150,000 0 0 150,000 2,178,455 2,178,455 0 0 2,178,455 596,000 596,000 22,143 34,658 539,199 4,088,855 4,088,855 111,611 34,658 3,942,586 $ 0 0 679,494 1,485 (680,979)