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HomeMy WebLinkAbout2002 Comprehensive Annual Financial Report CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report Year ended December 31, 2002 Department of Finance John Wallin--Treasurer and Finance Director Peggy Gibbs--Assistant Finance Director Paula Nelson—Accountant CITY OF EDINA, MINNESOTA TABLE OF CONTENTS Page PART I -- INTRODUCTORY SECTION Elected and Appointed Officials.................................................................................................1 Letters of 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: Balance Sheet ....................................................................................................................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: Combining Balance Sheet..................................................................................................55 Combining Statement of Revenues, Expenditures and Changes in Fund Balance..................................................................................................................56 Debt Service Funds: Combining Balance Sheet..................................................................................................58 Combining Statement of Revenues, Expenditures and Changes in Fund Balance..................................................................................................................59 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Combining and Individual Fund and Account Group Financial Statements (Continued): Capital Project Funds: Combining Balance Sheet..................................................................................................61 Combining Statement of Revenues, Expenditures and Changes in Fund Balance (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: Balance Sheet ..............................................................................................................70 Statement of Revenues, Expenses and Changes in Retained Earnings....................71 Statement of Cash Flows.............................................................................................72 Liquor Fund: Balance Sheet ..............................................................................................................73 Statement of Revenues, Expenses and Changes in Retained Earnings....................74 Statement of Cash Flows.............................................................................................75 Schedule of Operating Revenue and Expenses by Location......................................76 Swimming Pool Fund: Balance Sheet ..............................................................................................................77 Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit)......78 Statement of Cash Flows.............................................................................................79 Golf Course Fund: Balance Sheet ..............................................................................................................80 Statement of Revenues, Expenses and Changes in Retained Earnings....................81 Statement of Cash Flows.............................................................................................82 Schedule of Operating Expenses ................................................................................83 Arena Fund: Balance Sheet ..............................................................................................................84 Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit)......85 Statement of Cash Flows.............................................................................................86 Art Center Fund: Balance Sheet ..............................................................................................................87 Statement of Revenues, Expenses and Changes in Retained Earnings....................88 Statement of Cash Flows.............................................................................................89 Edinborough Park/Centennial Lake Fund: Balance Sheet ..............................................................................................................90 Statement of Revenues, Expenses and Changes in Retained Earnings ...................91 Statement of Cash Flows.............................................................................................92 CITY OF EDINA, MINNESOTA Table of Contents, Continued Page Trust and Agency Funds: Combining Balance Sheet…………………......................................................................... 94 Deferred Compensation Expendable Trust Fund: Balance Sheet..…………………………………………………………………………….. 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 Table Page General Governmental Expenditures by Function Last Ten Fiscal Years.............................................................Table 1.................................111 General Governmental Revenues by Source Last Ten Fiscal Years.............................................................Table 2.................................112 Property tax Levies and Collections -- Last Ten Fiscal Years............................................................................Table 3.................................113 CITY OF EDINA, MINNESOTA Table of Contents, Continued Assessed Value or Tax Capacity and Estimated Market Value of Taxable Property..........................................Table 4 .................................114 Property Tax Rates -- All Overlapping Governments Last Ten Fiscal Years.............................................................Table 5.................................115 Special Assessment Collections -- Last Ten Fiscal Years............................................................................Table 6.................................116 Ratio of Net General Bonded Debt to Assessed Value/Tax Capacity and Net Bonded Debt per Capita -- Last Ten Fiscal Years..............................................Table 7 .................................117 Computation of Overlapping Debt - December 31, 2002..........Table 8.................................118 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures -- Last Ten Fiscal Years...................................Table 9 .................................119 Revenue Bond Coverage -- Last Ten Fiscal Years..................Table 10 ................................120 Property and Construction Values -- Last Ten Fiscal Years...........................................................................Table 11................................121 Principal Taxpayers - December 31, 2002...............................Table 12 ................................122 Major Employers in the City......................................................Table 13................................123 Labor Force Data ......................................................................Table 14 ................................124 Miscellaneous Statistics - December 31, 2002........................Table 15................................125 Schedule of Sources and Uses of Public Funds for 50th & France-No. 1200, a Tax Increment Financing District................................................................Table 16 ................................127 Schedule of Sources and Uses of Public Funds for Southeast Edina Redevelopment District- No. 1201, a Tax Increment Financing District....................Table 17 ................................128 Schedule of Sources and Uses of Public Funds for Grandview Area Redevelopment District- No. 1202, a Tax Increment Financing District....................Table 18 ................................129 Schedule of Sources and Uses of Public Funds for Southeast Edina Redevelopment District- No. 1203, a Tax Increment Financing District....................Table 19 ................................130 Schedule of Sources and Uses of Public Funds for 70th Street and Cahill Road District-No. 1207, a Tax Increment Financing District......................... Table 20................................131 Page 1 CITY OF EDINA, MINNESOTA Elected and Appointed Officials December 31, 2002 Term of office expires January* Elected: Mayor—Dennis Maetzold 2005 Council: James Hovland 2007 Scot Housh 2007 Michael Kelly 2005 Linda Masica 2005 Appointed: Manager-Gordon Hughes Treasurer and Finance Director-John Wallin Assistant Finance Director-Peggy Gibbs Clerk-Debra Mangen *First Official business day. 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 $36,494,140 in 2002, a decrease of 13.2 percent over 2001. General property taxes produced 67.8 percent of general revenues compared to 58.1 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 Total Percent of total Increase (decrease) from 2001 Taxes $24,735,336 67.78% $ 325,551 Special assessments 998,908 2.74% (87,185) Franchise fee 418,153 1.15% (55,549) Licenses and permits 1,939,207 5.31% (300,404) Intergovernmental 2,254,968 6.18% (2,831,013) Charges for services 2,096,806 5.75% 134,634 Fines and forfeitures 910,407 2.49% (66,545) Investment income 1,178,211 3.23% (96,083) Interest on funds held with fiscal agent 0 .00% (83,407) Sale and rental of property 1,782,063 4.88% (2,480,921) Other revenues 180,081 .49% (4,385) Total revenues $36,494,140 100.00% $(5,545,307) Current tax collections were 99.32 percent of the tax levy, up .06 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 99.6 percent, an increase of .20 percent from last year. Taxes were 67.8% of general revenues compared to 58.1% in 2001 and Intergovernmental revenues were 6.2% compared to 12.1% in 2001. This is due to the elimination of the Homestead Credit from the Intergovernmental revenues. It was replaced with Market Value Homestead Credit that is now reported in Taxes. There was a $4 million sale of land in 2001. Investment income decreased compared with 2001 due to higher investment earnings in 2001. Page 6 Expenditures for general governmental purposes within the General, Special Revenue, Debt Service and Capital Project Funds totaled $42,068,735 an increase of 6.4 percent over 2001. Increases (decreases) in levels of expenditures for major functions of the City over last year are shown in the following table: Increase Percent (decrease) Function Total of total from 2001 General government $2,984,012 7.1%$ 350,752 Public safety 9,893,428 23.5%484,137 Public works 4,161,373 9.9%(151,692) Parks 2,602,266 6.2%226,701 Unallocated general 445,929 1.1%(60,566) Other 1,942,490 4.6%(270,757) Capital outlay 11,059,757 26.2%(133,398) Bond principal 5,885,000 14.0%2,145,000 Interest and fiscal charges 3,094,480 7.4%(54,239) Total expenditures $42,068,735 100.0%$ 2,535,938 Debt Administration The ratio of net bonded debt to tax capacity and the amount of bonded debt per capita are useful indicators of the City's debt position and are listed below: Ratio of net bonded debt to tax capacity 1.0333 Net bonded debt per capita $ 1,426 The following is a summary of bonded debt for fiscal year 2002: Gross bonded debt outstanding, January 1, 2002 $72,465,000 Add bonds issued in fiscal year 2002 13,810,000 Deduct bonds redeemed in fiscal year 2002 15,540,000 Gross bonded debt outstanding, December 31, 2002 70,735,000 Deduct sinking fund assets, December 31, 2002 (3,070,758) Net bonded debt, December 31, 2002 $67,664,242 The City's bonds have a Aaa rating as determined by Moody's Investors Service, and were upgraded to AAA from Standard & Poors in August, 2002. At December 31, 2002, the City had $40,855,000 of Tax Increment Bonds outstanding, excluding General Obligation, Improvement and Revenue Bonds. $1,551,207 was available in the General Debt Service Fund for payment of these obligations, resulting in $39,303,793 net general debt at December 31, 2002 . 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 2002, the City received in interest and dividends $1,894,015. The following is a list of the City's cash and investments by classification as of December 31, 2002: Cash $6,016,189 Cash deficit (5,125,575) Cash with plan administrator 3,687,756 Cash with fiscal agents 2,538 Certificates of deposit 1,478,485 Commercial paper 22,743,096 Banker’s acceptance 1,563,887 Government securities 19,206,067 Money market investments 14,252,328 $63,824,771 Capital Project Funds The major construction projects and equipment purchases are accounted for in three Capital Project Funds. The HRA Fund accounts for construction projects within the City's five 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, 2002, the general fixed assets of the City amounted to $109,024,642. 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. General Purpose Statements Page 11 CITY OF EDINA, MINNESOTA Combined Balance Sheet - All Fund Types and Account Groups December 31, 2002 (with comparative totals for December 31, 2001) Governmental fund types SpecialDebt Capital Assets and Other DebitsGeneralRevenueServiceProjects Cash (note 2)$00340,06639,827 Petty cash and change funds (note 2)3,300000 Investments (note 2)14,678,2231,246,638033,739,131 Cash and investments with plan administrators (notes 2 and 7)0000 Cash and investments with fiscal agents (note 2)0000 Receivables: Accounts223,820103,5390113,283 Customers0000 Accrued interest99011,845099,194 Special assessments0003,097,262 Due from other funds (note 9)607,731244,7671,207,572714,705 Due from other governments202,378158,2803,56934,348 Inventory0000 Prepaid expenses417,093000 Fixed assets (note 4)0000 Discount on bonds0000 Amount available in debt service fund0000 Amount to be provided for retirement of long-term debt0000 Amount to be provided for compensated absences0000 Total assets and other debits$16,133,5351,765,0691,551,20737,837,750 Liabilities, Fund Equity and Other Credits Liabilities: Accounts payable416,90625,6730861,906 Salaries payable576,7373,14302,382 Contracts payable000226,909 Accrued interest payable0000 Due to other funds (note 9)240,19346,54204,221,616 Due to other governments109,169100,113021,806 Compensated absences payable30,824000 Deposits payable10,0000020,289 Taxes payable00072,400 Deferred revenue6,6418003,024,862 Obligation under capital lease (note 13)0000 Bonds payable (note 5)0000 Total liabilities1,390,470175,55108,452,170 Fund equity and other credits: Investment in general fixed assets (note 4)0000 Investment in joint venture (note 18)0000 Contributed Capital (note 15)0000 Retained earnings: Reserved (note 10)0000 Unreserved-undesignated0000 Fund balance: Reserved (note 10)417,09301,551,2072,635,229 Unreserved - designated (note 10)14,325,9720018,737,582 Unreserved - undesignated01,589,51808,012,769 Total fund equity and other credits14,743,0651,589,5181,551,20729,385,580 Contingencies (note 12) Total liabilities, fund equity and other credits$16,133,5351,765,0691,551,20737,837,750 See accompanying notes to financial statements Page 12 ProprietaryFiduciary fund typefund typeAccount groups GeneralGeneralTotals Trust &FixedLong-term(memorandum only) EnterpriseAgencyAssetDebt20022001 244,256251,40000875,549250,307 11,76500015,06515,065 4,589,3384,990,5330059,243,86354,826,448 03,687,756003,687,7563,980,984 2,5380002,5383,287,331 144,844000585,486472,592 1,927,5940001,927,5941,934,726 62,77540800175,212265,078 114,3740003,211,6363,226,458 1,733,5760004,508,3513,314,522 2,350000400,9251,185,777 1,203,8720001,203,8721,103,909 0000417,09320,063 43,212,4960109,024,6420152,237,138137,380,882 82,63200082,63294,433 0001,551,2071,551,207849,417 00058,958,79558,958,79554,354,496 0002,627,6692,627,6692,354,817 53,332,4108,930,097109,024,64263,137,671291,712,381268,917,305 835,35495,352002,235,1912,934,705 195,588000777,850639,195 59,015000285,924466,298 184,547000184,547310,891 00004,508,3513,314,522 137,0995,146,989005,515,176440,074 687,044002,627,6693,345,5373,085,555 98,121000128,41099,930 000072,40041,196 19,5420003,051,1253,640,751 95,00000295,002390,002518,913 10,520,0000060,215,00070,735,00072,465,000 12,831,3105,242,341063,137,67191,229,51387,957,030 00108,044,9840108,044,98496,035,499 00979,6580979,6580 4,838,6460004,838,6465,284,049 1,519,5510001,519,5511,607,120 34,142,90300034,142,90333,051,564 03,687,756008,291,2856,316,695 000033,063,55422,557,126 00009,602,28716,108,222 40,501,1003,687,756109,024,6420200,482,868180,960,275 53,332,4108,930,097109,024,64263,137,671291,712,381268,917,305 Page 13 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenditures and Changes in Fund Balance -- All Governmental Fund Types and Expendable Trust Fund Year ended December 31, 2002 (with comparative totals for year ended December 31, 2001) Governmental fund types Special DebtCapital GeneralRevenueServiceProjects Revenues: Taxes (note 3)$15,943,71001,737,7907,053,836 Special assessments000998,908 Franchise fees0418,15300 Licenses and permits1,939,207000 Intergovernmental788,775374,43301,091,760 Charges for services2,049,4700047,336 Fines and forfeitures910,407000 Investment Income151,388118,7820908,041 Interest on funds held with fiscal agent0000 Sales and rental of property383,984001,398,079 Other revenues30,3947,8990141,788 Total revenues22,197,335919,2671,737,79011,639,748 Expenditures: Current: General government 2,984,012000 Public safety9,893,428000 Public works4,161,373000 Parks2,602,266000 Unallocated general445,929000 Other48,063763,44301,130,984 Capital outlay: General government32,412000 Public safety313,451000 Public works392,244000 Parks56,785000 Infrastructure00010,262,610 Other02,25500 Debt Service: Bond principal005,885,0000 Interest and fiscal charges003,094,4800 Total expenditures20,929,963765,6988,979,48011,393,594 Excess (deficiency) of revenues over expenditures 1,267,372153,569(7,241,690)246,154 Other financing sources (uses): Operating transfers in (out): Operating transfers in (out)--General Fund000900,000 Operating transfers in (out)--Revolving Fund(900,000)000 Operating transfers in (out)--HRA0010,493,4800 Operating transfers in (out)--General Debt Service Fund000(10,493,480) Operating transfers in (out)--Liquor Fund000625,000 Operating transfers in (out)--Utility Fund000290,000 Operating transfers in (out)--Art Center Fund000(15,010) Operating transfers in (out)--Edinborough Park Fund000(54,343) Operating transfers in (out)--Arena Fund000(90,157) Parkland dedication0000 Payments for refunding bonds00(2,550,000)0 Proceeds from sale of bonds00013,637,416 Total other financing sources (uses)(900,000)07,943,4804,799,426 Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses367,372153,569701,7905,045,580 Fund balance - January 114,375,6931,435,949849,41724,340,000 Fund balance - December 31$14,743,0651,589,5181,551,20729,385,580 See accompanying notes to financial statements Page 14 Totals Fiduciary Type (memorandum only) Expendable Trust 20022001 0 24,735,33624,409,785 0 998,9081,086,093 0 418,153473,702 0 1,939,2072,239,611 0 2,254,9685,085,981 0 2,096,8061,962,172 0 910,407976,952 (513,243)664,9681,023,544 0 083,407 0 1,782,0634,262,984 372,015 552,096501,279 (141,228)36,352,91242,105,510 0 2,984,0122,633,260 0 9,893,4289,409,291 0 4,161,3734,313,065 0 2,602,2662,375,565 0 445,929506,495 152,000 2,094,4902,298,104 0 32,412417,949 0 313,451737,972 0 392,244576,727 0 56,785116,905 0 10,262,6109,342,455 0 2,2551,147 0 5,885,0003,740,000 03,094,4803,148,719 152,00042,220,73539,617,654 (293,228)(5,867,823)2,487,856 0 900,0000 0 (900,000)0 0 10,493,4806,015,411 0 (10,493,480)(6,015,411) 0 625,000100,000 0 290,000100,000 0 (15,010)(8,252) 0 (54,343)(102,300) 0 (90,157)(75,189) 0 060,280 0 (2,550,000)(15,810,000) 0 13,637,4160 011,842,906(15,735,461) (293,228)5,975,083(13,247,605) 3,980,984 44,982,04358,229,648 3,687,75650,957,12644,982,043 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, 2002 (with comparative totals for year ended December 31, 2001) General Variance favorable BudgetActual(unfavorable) Revenues: Taxes (note 3)$15,845,25615,943,71098,454 Licenses and permits1,839,5001,939,20799,707 Intergovernmental669,900788,775118,875 Charges for services1,730,9162,049,470318,554 Fines and forfeitures810,000910,407100,407 Investment income113,200151,38838,188 Sales and rental of property142,500383,984241,484 Other revenues27,60030,3942,794 Total revenues21,178,87222,197,3351,018,463 Expenditures: Current: General government 2,978,1832,984,012(5,829) Public safety9,960,2969,893,42866,868 Public works4,358,7894,161,373197,416 Parks2,700,8322,602,26698,566 Unallocated general563,325445,929117,396 Other 048,063(48,063) Capital outlay: General government43,91632,41211,504 Public safety481,532313,451168,081 Public works513,333392,244121,089 Parks103,66656,78546,881 Total expenditures21,703,87220,929,963773,909 Excess (deficiency) of revenues over expenditures(525,000)1,267,3721,792,372 Other financing sources (uses): Operating transfers in525,0000(525,000) Operating transfers out0(900,000)(900,000) Parkland dedication000 Total other financing sources (uses)525,000(900,000)(1,425,000) Excess of revenues and other financing sources over expenditures and other financing uses$0367,372367,372 Fund balance - January 1 14,375,693 Fund balance - December 3114,743,065 See accompanying notes to financial statements Page 16 Totals (memorandum only) Special Revenue20022001 VarianceVariance favorable favorable BudgetActual(unfavorable)BudgetActual(unfavorable)Actual 00015,845,25615,943,71098,45414,375,991 0001,839,5001,939,20799,7072,239,611 175,942374,433198,491845,8421,163,208317,3661,763,630 0001,730,9162,049,470318,5541,909,666 000810,000910,407100,407976,952 000113,200151,38838,188157,309 000142,500383,984241,484250,352 00027,60030,3942,79416,087 175,942374,433198,49121,354,81422,571,7681,216,95421,689,598 0002,978,1832,984,012(5,829)2,633,260 0009,960,2969,893,42866,8689,409,291 0004,358,7894,161,373197,4164,313,065 0002,700,8322,602,26698,5662,375,565 000563,325445,929117,396506,495 175,942374,433(198,491)175,942422,496(246,554)138,055 00043,91632,41211,504417,949 000481,532313,451168,081737,972 000513,333392,244121,089576,727 000103,66656,78546,881116,905 175,942374,433(198,491)21,879,81421,304,396575,41821,225,284 000(525,000)1,267,3721,792,372464,314 000525,0000(525,000)0 0000(900,000)(900,000)(46,000) 00000060,280 000525,000(900,000)(1,425,000)14,280 0000367,372367,372478,594 014,375,69313,897,099 014,743,06514,375,693 Page 17 CITY OF EDINA, MINNESOTA Combined Statement of Revenues, Expenses and Changes in Retained Earnings -- All Proprietary Fund Types Year ended December 31, 2002 (with comparative totals for year ended December 31, 2001) Totals 20022001 Operating revenues: Charges for sales and services: Sales - Liquor $9,355,3669,074,112 Sales - Retail 315,963355,413 Sales - Utility 8,436,8568,293,547 Sales - Concessions 393,255373,534 Memberships 614,372566,502 Admissions 679,700644,705 Building rental 1,319,8331,257,001 Rental of equipment 389,843384,163 Greens fees 1,854,9711,970,280 Other fees 1,502,7671,515,604 Total operating revenues 24,862,92624,434,861 Operating expenses: Cost of sales and services 7,333,3547,241,612 Personal services 4,666,7254,472,574 Contractual services 6,083,0196,142,852 Commodities 1,338,4511,153,468 Central services 1,616,9161,521,300 Depreciation 2,141,9152,142,943 Total operating expenses 23,180,38022,674,749 Operating income 1,682,5461,760,112 Nonoperating revenues (expenses): Intergovernmental 127,160128,069 Investment income 497,335490,708 Interest from fiscal agents 0137,040 Donations 21,72324,729 Miscellaneous revenue (expense)102,709190 Interest and fiscal charges (416,714)(647,970) Interest on capital lease (7,620)(10,483) Gain (loss) on disposal of capital assets (681,482)(155,229) Amortization of bond discount (11,801)(39,118) Total nonoperating expenses (368,690)(72,064) Income before operating transfers 1,313,8561,688,048 Operating transfers in (out): General fund 046,000 Art center fund(114,000)(104,000) Liquor store fund114,000239,000 Arena fund 0(135,000) Revolving fund(755,490)(60,259) Total operating transfers, net (755,490)(14,259) Net income 558,3661,673,789 Add depreciation on contributed assets 445,404440,951 Increase in retained earnings1,003,7702,114,740 Retained earnings - January 134,658,68432,543,944 Retained earnings - December 31 $35,662,45434,658,684 See accompanying notes to financial statements Page 18 CITY OF EDINA, MINNESOTA Combined Statement of Cash Flows -- All Proprietary Fund Types Year Ended December 31, 2002 (with comparative totals for year ended December 31, 2001) Totals Cash flows from operating activities:20022001 Operating income$1,682,5461,760,112 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation expense2,141,9152,142,943 Changes in assets and liabilities: (Increase) decrease in accounts receivable(12,372)(17,957) (Increase) decrease in customer accounts receivable7,132235,499 (Increase) decrease in special assessments receivable797(38,714) (Increase) decrease in due from other funds414,644(587,830) (Increase) decrease in due from other governments(137)2,314 Increase in prepaid expenses1,13353,497 (Increase) decrease in inventory(96,905)3,937 Decrease (increase) in accounts payable(7,552)117,078 Increase in salaries payable69,2115,496 Increase (decrease) in contracts payable31,996(67,544) Decrease in accrued interest payable(126,344)(16,472) Increase (decrease) in due to other funds(783,168)783,168 Increase (decrease) in due to other governments9,623(228,205) Increase in compensated absences payable64,26056,690 Increase in deposits payable11,29836,230 Increase in deferred revenue14,5020 Intergovernmental grants127,160128,069 Miscellaneous revenue102,709190 Total adjustments1,969,9022,608,389 Net cash provided by operating activities3,652,4484,368,501 Cash flows from noncapital financing activities: Donations 21,72324,729 Operating transfer in--General Fund046,000 Operating transfer (out)--Art Center(114,000)(104,000) Operating transfer in--Liquor Store Fund114,000239,000 Operating transfer (out)--Arena0(135,000) Operating transfer (out)--Revolving fund(755,490)(60,259) Net cash provided by (used in) noncapital financing activities(733,767)10,470 Cash flows from capital and related financing activities: Net acquisition of capital assets(4,009,027)(2,134,388) Loss on disposal of capital assets(681,482)(155,229) Proceeds from revenue bonds04,620,000 Principal paid on revenue bonds(7,105,000)(780,000) Increase on bond discount0(54,097) Principal paid on capital lease(60,000)(55,000) Interest received from fiscal agent0137,040 Interest paid on capital lease(7,620)(10,483) Interest paid on bonds(416,714)(647,970) Net cash provided by (used in) capital and related financing activities(12,279,843)919,873 Cash flows from investing activities: Proceeds from sale of investments5,818,3310 Purchase of investments 0(5,827,521) Decrease in interest receivable4,95939,252 Investment income497,335490,708 Net cash provided by (used in) investing activities6,320,625(5,297,561) Net increase (decrease) in cash and cash equivalents(3,040,537)1,283 Cash and equivalents, beginning of year3,299,0963,297,813 Cash and equivalents, end of year$258,5593,299,096 See accompanying notes to financial statements Page CITY OF EDINA, MINNESOTA 19 Notes to General Purpose Financial Statements December 31, 2002 (1) Summary of Significant Accounting Policies The City operates under the "Optional Plan B" form of government according to applicable State of Minnesota Statutes. The Statutes prescribe a Council-Manager form of organization. The City provides the following services: public safety, highways and streets, sanitation, health and social services, culture-recreation, public improvements, planning and zoning, and general administration. The City was incorporated in 1888. The accounting policies of the City conform to 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) Page CITY OF EDINA, MINNESOTA 20 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. B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into six generic fund categories and three broad fund types as follows: Governmental Funds General Fund--The General Fund is the primary operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds--Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds--Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs. Capital Project Funds--Capital Project Funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). Proprietary Funds Enterprise Funds--Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises- where the intent of the governing body is that the costs (expenses, including (Continued) Page CITY OF EDINA, MINNESOTA 21 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 CITY OF EDINA, MINNESOTA 22 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 CITY OF EDINA, MINNESOTA 23 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 CITY OF EDINA, MINNESOTA 24 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 arrangements outstanding at the end of the year are recorded as due to/from other funds. (Continued) Page CITY OF EDINA, MINNESOTA 25 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 earned 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 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, 2002 reported in the Governmental Funds, Proprietary Funds and General Long-term Debt Account Group was $30,824, $687,044, $2,627,669 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. O. Reclassifications Certain 2001 amounts were reclassified to conform to the 2002 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 (Continued) Page CITY OF EDINA, MINNESOTA 26 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 accounting principles generally accepted in the United States of America 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. R. Joint Venture The City’s investment in joint venture is reported in the general fixed asset account group equal to the City’s interest in the net assets of the joint venture. The City’s interest is based on the allocation in the joint powers agreement. (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, 2002 the City had no deposits that were uninsured or uncollateralized. The deposits were insured or collateralized by securities held by the City’s agent in the City’s name. Investments The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies; (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above; (c) General obligations in the State of Minnesota or any of its municipalities; (d) Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System; (Continued) Page CITY OF EDINA, MINNESOTA 27 (e) Commercial paper issued by United States corporations or their Canadian Subsidiaries, of the highest quality, and maturing in 270 days or less; (f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies or their subsidiaries; (g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers; and (h) Futures contracts sold under authority of Minnesota Statutes 471.56, subdivision 5. The City's investments are 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, 2002 were as follows: Credit Risk Category Category Category Fair 1 2 Value Certificates of deposit $1,478,485 0 1,478,485 Commercial paper 6,783,004 15,960,092 22,743,096 Banker’s acceptance 0 1,563,887 1,563,887 Money Market investments 36,860 14,215,468 14,252,328 Government securities: United States Treasury Notes 260,077 1,611,615 1,871,692 Federal National Mortgage Association 1,386,777 3,392,600 4,779,377 Government National Mortgage Association 0 478,121 478,121 Federal Home Loan Mortgage Corporation 1,792,107 4,409,339 6,201,446 Federal Home Loan Bank 1,572,916 2,171,104 3,744,020 SBA Pool 233,044 484,210 731,411 Municipal Bonds 0 1,400,000 1,400,000 $13,543,270 45,700,593 59,243,863 Cash and investments with fiscal agents 2,538 Cash and investments with plan administrators 3,687,756 Total investments $ 62,934,157 (Continued) Page CITY OF EDINA, MINNESOTA 28 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 $494,375 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, 2002 were as follows: Carrying Amount Bank balance Checking accounts $ 626,849 1,071,314 Cash on hand 15,065 0 Cash with trustee 248,700 0 $ 890,614 1,071,314 (3) Property Taxes The City Council annually adopts a tax levy and certifies it to the County for collection in October of each year. The County is responsible for billing and collecting all property taxes for itself, the City, the local school district and other taxing authorities. Such taxes become a lien on January 1 of the following year and are recorded as receivables by the City at that date. Real property taxes are payable by property owners on May 15 and October 15 of each calendar year. These taxes are collected by the County and remitted to the City on or before July 5 and December 4 of the same year. Additionally, delinquent collections in November and December are remitted to the City each January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes received by the City in July and December are recognized as revenue for the current year. Taxes not collected by the County by December 31 (remitted to the City by the following January) are classified as delinquent and unremitted taxes receivable. (Continued) Page CITY OF EDINA, MINNESOTA 29 (4) Fixed Assets A summary of changes in general fixed assets during 2002 is as follows: Balance Balance January 1 Additions Deletions December 31 Land $23,215,827 453,815 11,820,169 11,849,474 Land improvements 16,105,642 15,200,642 2,100,471 29,205,813 Buildings 20,697,983 4,695,504 6,384,789 19,008,698 Furniture & fixtures 913,716 41,214 366,497 588,433 Vehicles 5,441,453 703,998 348,698 5,796,753 Sidewalks 310,995 0 271,597 39,398 Leasehold improvements 188,545 0 188,545 0 Miscellaneous equipment 200,599 47,900 40,343 208,156 Park & playground equipment 503,672 141,576 30,179 615,069 Highway equipment 2,290,373 0 235,384 2,054,989 Police equipment 337,084 199,218 43,754 492,548 Fire equipment 396,847 14,990 26,423 385,414 Election equipment 0 0 0 0 Engineering Equipment 40,080 0 0 40,080 Traffic signals 165,790 0 0 165,790 Tools 5,812 0 0 5,812 Parks 19,892,698 0 4,041 19,888,656 Construction in progress 5,328,383 15,328,824 2,957,306 17,699,901 Investment in joint venture 0 979,658 0 979,658 Total $96,035,499 37,807,340 24,818,197 109,024,642 A summary of proprietary fund fixed assets at December 31,2002 is as follows: Enterprise Fund Land $1,088,965 Golf course 4,602,724 Land improvements 885,928 Water distribution system 12,487,895 Sewer collection system 13,879,198 Major recreation facilities 14,655,091 Major water facilities 19,319,071 Buildings—liquor stores 1,531,548 Furniture, fixtures and equipment 3,495,708 Vehicles 847,392 Lease property - capital lease 468,580 Construction in progress 1,464,742 74,726,842 Less accumulated depreciation (31,514,346) Net book value $43,212,496 (Continued) Page CITY OF EDINA, MINNESOTA 30 (5) Long-term Debt Bonded Debt The City has four types of bonded debt outstanding at December 31, 2002: tax increment bonds, general obligation bonds, public project revenue bonds and G.O. 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 type is payable solely from annual appropriation lease payments received from the City of Edina pursuant to a lease between the Edina Housing and Redevelopment Authority and the City. The fourth type is payable primarily from enterprise revenue with any deficiency to be provided for by general property taxes. The bonded debt outstanding is summarized as follows: Maturities Interest rates Balance December 31, 2002 Tax Increment Bonds 2006 – 2013 3.00 - 6.25 $40,855,000 General Obligation Bonds 2017 – 2017 4.25 - 5.75 6,950,000 Public Proj. Rev. Bonds 2021 – 2021 4.25 - 5.75 12,410,000 GO Revenue Bonds 2009 – 2017 2.25 - 6.05 10,520,000 Total $70,735,000 Changes in long-term debt during the year were as follows: Balance January 1, 2002 Issued/ Increases Redeemed/ decreases Balance December 31, 2002 Tax Increment Bonds $47,590,000 1,400,000 8,135,000 40,855,000 General Obligation Bonds 7,250,000 0 300,000 6,950,000 Public Project Rev. Bonds 0 12,410,000 0 12,410,000 G.O. Revenue Bonds 17,625,000 0 7,105,000 10,520,000 Total bonds 72,465,000 13,810,000 15,540,000 70,735,000 Compensated absences payable 2,354,817 272,852 0 2,627,669 Obligation under capital lease $363,913 0 68,911 295,002 The City had the following G.O. revenue bonds outstanding at December 31, 2002: Utility Revenue Bonds, Series 1999A 2,630,000 Recreation Refunding Bonds, Series 1999B 3,270,000 Recreation Facility Bonds, Series 2001A 4,620,000 $10,520,000 (Continued) Page CITY OF EDINA, MINNESOTA 31 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, 2002, including interest payments of $13,950,379 are as follows: Year ending Tax General Public Project G.O. December 31 Increment Obligation Revenue Revenue Total 2003 $ 6,889,328 695,388 390,000 1,453,492 9,428,208 2004 6,682,761 679,625 457,600 1,503,573 9,323,559 2005 6,822,300 687,912 480,700 1,509,393 9,500,305 2006 6,161,010 694,600 501,600 1,511,605 8,868,815 2007 5,514,483 675,287 527,725 1,505,204 8,222,699 2008-2021 16,856,715 6,803,369 10,653,811 5,027,898 39,341,793 $ 48,926,597 10,236,181 13,011,436 12,511,165 84,685,379 During 2001, the City issued $4,620,000 in General Obligation Recreational Facility Bonds, Series 2001A. Of the total proceeds, $3,066,438 was deposited into a sinking fund to finance a crossover debt refunding of G.O. Recreational Facility Refunding Bonds, Series 1992C. The sinking funds remained in place until the crossover date, at which time they paid off the outstanding debt. Both issues were reported on the City’s financial statements until the call date of January 1, 2002 for the G.O. Recreational Facility Refunding Bonds, Series 1992C. The cumulative savings on this refunding will be $280,300, and the net present value of savings is $245,169. The remaining proceeds of $1,491,965 will finance improvements in the swimming pool and municipal golf facilities. During 2002, the City issued $12,410,000 in Edina Housing and Redevelopment Authority Public Project Revenue Bonds, Series 2002 to finance the cost of constructing and furnishing a City Hall and Public Safety Facility. During 2002, the City issued $1,400,000 in G.O. Tax Increment Bonds, Series 2002. These bonds were issued to reimburse costs of the hazardous substances removal at the Grandview area. Subsequent Event Subsequent to December 31, 2002, the City issued $1,540,000 G.O. Equipment Certificates of Indebtedness, Series 2003A to fund equipment purchases; $6,570,000 G.O. Tax Increment Refunding Bonds, Series 2003B to refund G.O. Tax Increment Series 1993; and $3,200,000 G.O. Water and Sewer Revenue Bonds, Series 2003C to fund capital improvements to the water and sewer system. (Continued) Page CITY OF EDINA, MINNESOTA 32 Legal Debt Margin Minnesota Statutes, Chapter 475, as amended, provide that the city shall not incur or be subject to a net debt in excess of 2% of the market value of taxable property. At December 31, 2002, the legal debt margin was $131,328,840 calculated as follows: Market value $ 6,913,942,000 Debt limit - 2% of market value 138,278,840 Amount of general obligation debt $70,735,000 Less: Tax increment bonds $40,855,000 Public project revenue bonds 12,410,000 Revenue bonds 10,520,000 Total deductions 63,785,000 Total amount of debt applicable to debt limit 6,950,000 Legal debt margin $ 131,328,840 (Continued) Page CITY OF EDINA, MINNESOTA 33 Long-term Debt - Other The City is the administering authority for the following tax increment finance districts. Tax capacity values are for taxes payable in 2002. 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 $ 112,845 Current tax capacity value 926,987 Captured tax capacity value: Retained by authority 814,142 Shared with other taxing districts 0 General obligation tax increment bonds issued 5,350,000 Total loans incurred 0 Amounts redeemed 2,900,000 Outstanding bonds and loans at December 31, 2002 $ 2,450,000 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 $ 114,831 Current tax capacity value 2,582,253 Captured tax capacity value: Retained by authority 2,467,422 Shared with other taxing districts 0 General obligation tax increment bonds issued 22,410,000 Total loans incurred 0 Amounts redeemed 16,080,000 Outstanding bonds and loans at December 31, 2002 $ 6,330,000 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 $ 165,060 Current tax capacity value 833,100 Captured tax capacity value: Retained by authority 668,040 Shared with other taxing districts 0 General obligation tax increment bonds issued 6,070,000 Total loans incurred 0 Amounts redeemed 2,060,000 Outstanding bonds and loans at December 31, 2002 $ 4,010,000 (Continued) Page CITY OF EDINA, MINNESOTA 34 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 $ 240,126 Current tax capacity value 2,804,198 Captured tax capacity value: Retained by authority 2,564,072 Shared with other taxing districts 0 General obligation tax increment bonds issued 35,744,724 Total loans incurred 0 Amounts redeemed 7,679,724 Outstanding bonds and loans at December 31, 2002 $ 28,065,000 General Obligation tax increment bonds issued amounts were restated to eliminate the effect of doubling the bonds due to crossover refundings. (6) Retirement Plans A. Defined Benefit Pension Plans The City is involved in one pension program as follows: 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 the Coordinated Plan. Coordinated Plan members are covered by Social Security. 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. (Continued) Page CITY OF EDINA, MINNESOTA 35 Two methods are used to compute benefits for PERF’s Coordinated 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 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 1.7 percent of average salary 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. Normal retirement age is 55 for PEPFF and 65 for Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for Coordinated members hired on or after July 1, 1989. 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 single-life 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 be 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 on the web at mnpera.com, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296- 7460 or 1-800-652-9026. Funding Policy Minnesota Statute Chapter 353 sets the rates 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 Coordinated Plan members are required to contribute 5.10% 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: 5.52% for Coordinated Plan PERF members, and 9.30% for PEPFF members. (Continued) Page CITY OF EDINA, MINNESOTA 36 The City’s contributions to PERF and PEPFF for the years ended December 31, 2002, 2001, and 2000 were equal to the required contributions for each year, as follows: 2002 2001 2000 PERF $565,460 516,964 485,277 PEPFF $485,138 455,461 439,163 (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 is recorded in an expendable trust fund. (Continued) Page CITY OF EDINA, MINNESOTA 37 (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, 2002 is as follows: Other Total Golf Enterprise Enterprise Utility Liquor Course Arena Funds Funds Operating Revenues $ 8,561,287 9,355,366 3,427,457 1,218,004 2,300,812 24,862,926 Depreciation 917,013 56,170 450,542 325,136 339,054 2,141,915 Operating income (loss) 1,164,473 825,069 258,427 (88,247) (477,176) 1,682,546 Nonoperating revenues (expenses), net (27,074) (23,135) (363,527) (14,950) 59,996 (368,690) Operating transfers in (out) (290,000) (739,000) 0 90,157 183,353 (755,490) Net income 847,399 62,934 (105,100) (13,040) (233,827) 558,366 Property additions 1,194,166 1,086,373 583,042 90,157 1,535,409 4,489,147 Property deletions 394,803 230,713 636,717 23,206 908,370 2,193,809 Net working capital 6,583,151 1,212,013 (79,407) 12,627 210,251 7,938,635 Bonds payable 2,630,000 0 4,930,000 1,390,000 1,570,000 10,520,000 Total assets 34,322,949 3,437,958 7,052,621 4,283,089 4,235,793 53,332,410 Total retained earnings (deficit) 31,021,509 2,806,250 1,695,400 (236,729) 376,024 35,662,454 (Continued) Page CITY OF EDINA, MINNESOTA 38 (9) Due From To Other Funds Interfund receivables and payables as of December 31, 2002 were as follows: Interfund Interfund Fund Receivables Payables General (including amount due to Edina Housing And Redevelopment Authority of $40,193) $ 607,731 240,193 Special Revenue: Community Development Block Grant 0 46,542 Communications 244,767 0 Debt Service: General Debt Service 898,476 0 City Hall Debt Service 309,096 0 Capital Project: Construction 0 4,221,616 Housing and Redevelopment Authority of Edina 40,193 0 Revolving 674,512 0 Enterprise: Utilities 340,068 0 Liquor 666,251 0 Swimming Pool 464,004 0 Golf Course 191,522 0 Arena 34,790 0 Art Center 66 0 Edinborough Park/Centennial Lake 36,875 0 $ 4,508,351 4,508,351 (Continued) Page CITY OF EDINA, MINNESOTA 39 (10) Reserved or Designated Fund Equity The following fund equity balances as of December 31, 2002 have been reserved or designated for the reasons noted below: General Fund: Reserved for prepaid insurance $417,093 Designated for Parkland dedication 122,494 Designated for Edinborough trust 4,645,867 Designated for unrealized investment gain 234,500 Designated for equipment replacement 2,120,989 Designated for insurance claims 925,765 Designated for General Fund operations 6,276,357 Debt Service Funds: Reserved for debt service 1,551,207 Capital Projects: Reserved for encumbrances 2,635,229 Designated for capital improvements 18,737,582 Enterprise Funds: Reserved for debt service 1,519,551 Trust and Agency Funds: Reserved for deferred compensation plan participants 3,687,756 Total fund equity reservations and designations $42,874,390 (11) Fund Deficits The following funds had deficit fund balances or retained earnings at December 31, 2002: Capital Project Fund: Construction $(4,651,997) Enterprise Fund: Arena $(236,729) 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. (12) Contingencies The City Attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance or will not have a material adverse effect on the financial condition of the City. (Continued) Page CITY OF EDINA, MINNESOTA 40 (13) 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 Golf Course Arena Edinborough Park Machinery and equipment $37,966 341,698 88,916 Less: Accumulated depreciation (30,373) (273,358) (71,133) Total $7,593 68,340 17,783 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, 2002: Year ending December 31: 2003 64,395 2004 35,971 Total minimum lease payments 100,366 Less: Amount representing interest (5,366) Present value of net minimum lease payments $ 95,000 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. 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: 2003 $83,761 2004 83,761 2005 83,761 2006 83,760 Total minimum lease payments 335,043 Less: Amount representing interest (40,041) Present value of net minimum lease payments $295,002 (Continued) Page CITY OF EDINA, MINNESOTA 41 (14) 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 was employed as an officer of this institution. (15) Fund Equity -- Contributed Capital The following is a summary of the changes in contributed capital: Enterprise Art Swimming Golf Edin. Pk. Utilities Center Pool Course Arena Cent. Lake Contributed capital: Balance January 1, 2002 $ 20,578 274,725 1,366,044 2,000 3,099,446 521,257 Less: Delete Contributed Assets 0 (2,614) (13,483) (2,000) 0 (19,716) Less: Transfer of depreciation To contributed capital (443) (18,036) (96,780) 0 (187,352) (104,980) Balance December 31, 2002 $ 20,135 254,075 1,255,781 0 2,912,094 396,561 (16) Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation, automobile, liability and pollution coverage are provided through an insurance company. The City pays an annual premium for this coverage and all claims are paid from the plan 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. (Continued) Page CITY OF EDINA, MINNESOTA 42 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 with 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 $925,765 in the general fund to finance potential uninsured loss. Settlement claims have not exceeded insurance coverage for either of the past three years. (17) Conduit Debt Obligations As of December 31, 2002, the City of Edina had outstanding 3 series of Housing and Health Care Revenue Bonds, with an aggregate principal amount payable of $24,905,000. 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. (18) Joint Ventures The City is a participant with the City of Bloomington, the City of Eden Prairie and the Metropolitan Airport Commission in a joint venture to construct and operate a facility to be used for the training of law enforcement officers and firefighters. The South Metro Public Safety Training Facility Association (PSTF) is governed by a Board consisting of one representative from each Member. On dissolution of the Association, the Facility shall revert to the City of Edina, and all remaining assets shall be divided among the members based on the Cost Sharing Formula. In accordance with the joint venture agreement, each member of the association will share in the cost of the construction and operation based on the Cost Sharing Formula. In accordance with the joint venture agreement, the PSTF remitted $5,708,000 to the City for 2002. The City’s net investment is reported in the City’s General Fixed Asset Account Group. The City’s equity interest in the PSTF was $979,658. Complete financial statements for PSTF can be obtained from the City of Edina, 4801 West 50th Street, Edina, MN 55424. (Continued) Page CITY OF EDINA, MINNESOTA 43 (19) Excess of Expenditures Over Appropriations For the year ending December 31, 2002, expenditures exceeded appropriations in the following departments: Budget Actual Variance General Government: Mayor & council $ 70,468 70,870 (402) Finance 512,723 544,959 (32,236) Election 110,264 189,955 (79,691) Legal and court services 366,000 436,707 (70,707) Public Works: Administration 142,019 144,309 (2,290) Unallocated General: Share of special assess 25,000 40,380 (15,380) Human Rights Comm. 87,925 94,909 (6,984) Central Services: General 4,761,540 4,899,955 (138,415) All unfavorable variances were funded by favorable expenditure variances from other departments or excess revenues. (20) New Accounting Standards In June 1999, the Governmental Accounting Standards Board (GASB) issued its statement on financial reporting, GASB 34, “Basic Financial Statements – and Management Discussion and Analysis – For State and Local Governments.” The new financial reporting model required by the statement changes the presentation of governments’ external financial statements. The effective date of the new pronouncement will require implementation by the City for its year ending December 31, 2003. Management is currently studying the impact of adopting GASB No. 34 and other related pronouncements. (21) Commitments At December 31, 2002, the City had outstanding commitments of $3,008,000 for construction contracts. (22) Subsequent Event On March 4, 2003, the City awarded contracts in the amount of $6,100,000 for the construction of a new City Hall/Police Facility. Combining and Individual Funds and Account Group Statements Page 44 GENERAL FUND The General Fund accounts for the revenues and expenditures used to carry out basic governmental activities of the City such as general government, public safety, public works, and parks and recreation. Revenue is recorded by source (e.g., taxes, licenses and permits, intergovernmental revenues, fines and forfeitures, charges for services). General Fund expenditures are made primarily for current day-to-day operations and operating equipment. This fund accounts for all financial transactions not properly accounted for in another fund. Page 45 CITY OF EDINA, MINNESOTA General Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Petty cash and change funds$3,3003,300 Investments14,678,22315,549,217 Accounts receivable223,820230,770 Accrued interest receivable99012,390 Taxes receivable: Delinquent132,443121,548 Allowance for uncollectible taxes(132,443)(121,548) Due from other funds607,73141,678 Due from other governments202,378270,914 Prepaid expenses417,09315,872 Total assets$16,133,53516,124,141 Liabilities and Fund Balance Liabilities: Accounts payable416,906453,635 Salaries payable576,737508,397 Due to other funds240,193623,727 Due to other governments109,16944,735 Compensated absences payable30,824107,954 Deposits payable10,00010,000 Deferred revenue6,6410 Total liabilities1,390,4701,748,448 Fund balance: Reserved417,09315,872 Unreserved: Designated14,325,97214,359,821 Total fund balance14,743,06514,375,693 Total liabilities and fund balance $16,133,53516,124,141 Page 46 CITY OF EDINA, MINNESOTA General Fund Statement of Revenue, Expenditures and Changes in Fund Balance -- Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual Revenues: Taxes$15,845,25615,943,71098,45414,375,991 Licenses and permits1,839,5001,939,20799,7072,239,611 Intergovernmental669,900788,775118,8751,657,599 Charges for service1,730,9162,049,470318,5541,909,666 Fines and forfeitures810,000910,407100,407976,952 Investment income113,200151,38838,188157,309 Sale and rental of property142,500383,984241,484250,352 Other revenues27,60030,3942,79416,087 Total revenues21,178,87222,197,3351,018,46321,583,567 Expenditures: Current: General government2,978,1832,984,012(5,829)2,633,260 Public safety9,960,2969,893,42866,8689,409,291 Public works4,358,7894,161,373197,4164,313,065 Parks2,700,8322,602,26698,5662,375,565 Unallocated general563,325445,929117,396506,495 Other048,063(48,063)32,024 Capital outlay: General government43,91632,41211,504417,949 Public safety481,532313,451168,081737,972 Public works513,333392,244121,089576,727 Parks103,66656,78546,881116,905 Total expenditures21,703,87220,929,963773,90921,119,253 Excess (deficiency) of revenues over expenditures(525,000)1,267,3721,792,372464,314 Other financing sources (uses): Operating transfers in (out) Liquor fund525,0000(525,000)0 Capital Project funds0(900,000)(900,000)0 Edinborough Park/Centennial Lake000(46,000) Parkland dedication00060,280 Total other financing sources 525,000(900,000)(1,425,000)14,280 Excess of revenues and other financing sources over expenditures and other financing uses $0367,372367,372478,594 Fund balance - January 1 14,375,69313,897,099 Fund Balance - December 31$14,743,065 $14,375,693 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 47 CITY OF EDINA, MINNESOTA General Fund Schedule of Revenues -- Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual Taxes: General property tax$15,840,25615,929,77689,52014,356,984 Penalties and interest5,00013,9348,93419,007 Total taxes15,845,25615,943,71098,45414,375,991 Licenses and permits1,839,5001,939,20799,7072,239,611 Intergovernmental: Federal aid8,40021,05212,65220,230 State grants: Homestead credit000979,864 State highway aid195,000195,0000140,000 Other0104,807104,80758,809 Police aid300,000306,7326,732297,122 County grants: Health programs166,500161,184(5,316)161,574 Total intergovernmental669,900788,775118,8751,657,599 Charges for service: Building Department2,6004,1051,50512,866 City Clerk2,10014,61012,51017,671 Fire Department16,00022,6456,64526,289 Ambulance Fees938,0001,269,045331,0451,224,377 Police Department160,000200,06540,06579,317 Engineering104,90067,219(37,681)69,498 Health Department6,0004,225(1,775)10,878 Planning Department20,30022,3852,08523,975 Surcharge01,3551,3551,554 Housing Foundation Contract26,10024,565(1,535)22,487 HRA Services60,00067,4127,412101,454 Assessing Searches1,000710(290)1,810 Park Registration130,00065,616(64,384)131,522 Senior Center72,00094,51722,5170 Other Fees8,0006,952(1,048)8,942 50th & France Assessment16,62016,620011,330 Charges to other Funds167,296167,424128165,696 Total charges for service1,730,9162,049,470318,5541,909,666 Fines and forfeitures810,000910,407100,407976,952 Sale and rental of property142,500383,984241,484250,352 Other revenues: Investment Income113,200151,38838,188157,309 Donations1,00017,50716,5070 Other revenue26,60012,887(13,713)16,087 Total other revenues140,800181,78240,982173,396 Total revenues$21,178,87222,197,3351,018,46321,583,567 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 48 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual General government: Mayor and council: Personal services$27,50028,625(1,125)26,606 Contractual services4,0003,8891116,667 Commodities1,0003886121,242 Central services37,96837,968036,540 Total mayor and council70,46870,870(402)71,055 Administration: Personal services568,562563,2285,334555,122 Contractual services157,400105,86051,540104,070 Commodities2,5003,161(661)2,470 Central services181,428181,4280165,720 Capital outlay5,67905,6796,318 Total administration915,569853,67761,892833,700 Planning: Personal services235,885230,9164,969221,895 Contractual services25,3357,72817,6076,519 Commodities1,215767448501 Central services80,96480,964073,812 Capital outlay5,03505,035214 Total planning348,434320,37528,059302,941 Finance: Personal services301,109309,863(8,754)291,787 Contractual services98,500105,941(7,441)110,426 Commodities1,1001,411(311)1,939 Central services104,664104,664095,508 Capital outlay7,35023,080(15,730)445 Total finance512,723544,959(32,236)500,105 Election: Personal services67,600151,556(83,956)11,501 Contractual services10,4366,3374,0991,078 Commodities5,0006,422(1,422)413 Central services16,30816,308014,820 Capital outlay10,9209,3321,5884,007 Total election110,264189,955(79,691)31,819 Assessing Personal services418,748402,02816,720390,587 Contractual services128,29462,40165,89385,715 Commodities1,8716561,2152,557 Central services134,796134,7960118,512 Capital outlay14,932014,932406,965 Total assessing698,641599,88198,7601,004,336 Legal and court services: Contractual services366,000436,707(70,707)307,253 Total general government3,022,0993,016,4245,6753,051,209 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 49 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual Public Safety: Police protection: Personal services3,834,1323,772,89561,2373,606,173 Contractual services258,179265,338(7,159)272,004 Commodities66,94869,726(2,778)63,593 Central services1,362,4681,362,46801,232,484 Capital outlay268,984223,09045,894126,726 Total police protection5,790,7115,693,51797,1945,300,980 Fire protection: Personal services2,316,7212,304,46212,2592,112,787 Contractual services207,955203,7744,181209,790 Commodities126,909147,472(20,563)158,860 Central services613,704613,7040617,784 Capital outlay172,13169,937102,194591,488 Total fire protection3,437,4203,339,34998,0713,690,709 Civil defense: Personal services25,18425,939(755)24,215 Contractual services8,5625,9882,5744,664 Commodities1,277411,2360 Capital outlay7,9041,8646,0407,455 Total civil defense42,92733,8329,09536,334 Animal control: Personal services42,61143,789(1,178)41,584 Contractual services7,51014,840(7,330)9,463 Commodities3,6545153,139685 Central services19,34419,344017,904 Capital outlay6,53206,5322,681 Total animal control79,65178,4881,16372,317 Public Health: Personal services189,190183,7525,438197,125 Contractual services211,740208,3383,402195,760 Commodities2,7001,0381,662851 Central services66,30066,300072,504 Capital outlay11,34514,204(2,859)5,394 Total public health481,275473,6327,643471,634 Inspections: Personal services398,569375,35323,216387,110 Contractual services49,73662,576(12,840)58,049 Commodities5,0393,9121,1273,682 Central services141,864141,8640122,220 Capital outlay14,6364,35610,2804,228 Total inspections609,844588,06121,783575,289 Total public safety10,441,82810,206,879234,95010,147,263 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 50 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual Public Works: Administration: Personal services97,479102,642(5,163)162,616 Contractual services5,0001,9013,0993,579 Commodities0226(226)112 Central services39,54039,540036,504 Total administration142,019144,309(2,290)202,811 Engineering: Personal services411,252372,80538,447402,261 Contractual services35,50033,9821,518135,056 Commodities12,0009,1262,87414,011 Central services157,344157,3440143,868 Capital outlay50,00020,34329,65734,980 Total engineering666,096593,60072,496730,176 Supervision and overhead: Personal services173,004176,230(3,226)161,728 Contractual services38,00035,5412,45937,626 Commodities1,00001,0001,056 Central services542,448542,4480470,424 Total supervision and overhead754,452754,219233670,834 Street Maintenance: Personal services1,076,5301,056,89419,6361,047,275 Contractual services623,000503,272119,728523,701 Commodities566,000548,73017,270607,988 Central services580,692580,6920565,260 Capital outlay463,333371,90191,432541,747 Total street maintenance3,309,5553,061,489248,0663,285,971 Total public works4,872,1224,553,617318,5054,889,792 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 51 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual Parks: Administration: Personal services412,175420,184(8,009)384,164 Contractual services28,76326,0662,69729,394 Commodities19,79114,4585,33313,313 Central services135,144135,1440129,156 Capital outlay4,50104,50114,811 Total administration600,374595,8524,522570,838 Recreation: Personal services113,071110,5482,523122,010 Contractual services116,979107,7729,20723,445 Commodities38,11440,626(2,512)24,033 Total recreation268,164258,9469,218169,488 Maintenance: Personal services$930,610905,02425,586850,904 Contractual services293,242240,19753,045255,102 Commodities149,359138,66310,696126,228 Central services463,584463,5840417,816 Capital outlay99,16556,78542,380102,094 Total supervision and overhead1,935,9601,804,253131,7071,752,144 Total parks2,804,4982,659,051145,4472,492,470 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 52 CITY OF EDINA, MINNESOTA General Fund Schedule of Expenditures - Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual Unallocated general expenditures: Contingencies Personal services00036 Contractual services80,00020,69659,304130,298 Commodities01,406(1,406)2,367 Total contingencies80,00022,10257,898132,701 Capital plan appropriation50,00050,0000100,000 City's share of special assessment25,00040,380(15,380)42,816 Human Rights Commission Contractual services87,92594,909(6,984)67,723 Total Human Rights Commission87,92594,909(6,984)67,723 Fireworks Commodities12,20012,200012,000 Total fireworks12,20012,200012,000 Suburban Rate Authority Contractual services4,1004,0001004,000 Total Suburban Rate Authority4,1004,0001004,000 Familink Contractual services31,61031,610031,144 Total Familink31,61031,610031,144 Regional Planning Commission Contractual services21,53621,536021,217 Total Regional Planning Commission21,53621,536021,217 Deer control Personal services01,070(1,070)707 Contractual services7,3006,77053010,300 Commodities6000600127 Total deer control7,9007,8406011,134 Fire Station debt service84,00083,76123983,760 Records management Contractual services35,7008,41827,2820 Total Records management35,7008,41827,2820 Employee programs Personal services112,35059,52952,8210 Contractual services11,0049,6441,3600 Total Employee programs123,35469,17354,1810 Total unallocated general expenditures563,325445,929117,396506,495 Central services048,063(48,063)32,024 Total expenditures $21,703,87220,929,963 773,90921,119,253 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) Page 53 CITY OF EDINA, MINNESOTA General Fund Schedule of Central Services Expenditures - Budget and Actual 20022001 Variance Favorable BudgetActual(unfavorable)Actual General: Personal services$3,634,4653,575,39159,0743,344,997 Contractual services1,008,5001,256,588(248,088)986,742 Commodities50,00039,28610,71450,816 Capital outlay68,57528,69039,88517,489 Total general4,761,5404,899,955(138,415)4,400,044 City Hall: Personal services72,31363,5348,77961,569 Contractual services52,41248,8853,52750,790 Commodities35,59520,66214,93327,725 Fixed charges20,42420,424018,828 Total City Hall180,744153,50527,239158,912 Public Works building: Personal services71,85670,0901,76672,099 Contractual services113,50099,57413,926130,762 Commodities64,50067,454(2,954)67,198 Fixed charges15,96015,960014,712 Capital outlay7,4968,080(584)3,236 Total Public Works building273,312261,15812,154288,007 Equipment operation: Personal services330,924347,394(16,470)330,425 Contractual services93,00099,790(6,790)82,826 Commodities554,000481,33872,662524,110 Fixed charges305,172305,1720277,044 Capital outlay31,00024,3796,62114,564 Total equipment operation1,314,0961,258,07356,0231,228,969 Total central services expenditures6,529,6926,572,691(42,999)6,075,932 Less allocation to other activities6,529,6926,524,6285,0646,043,908 Net central services048,063(48,063)32,024 Year ended December 31, 2002 (with comparative actual amounts for year ended December 31, 2001) 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. Page 55 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Balance Sheet December 31, 2002 (with comparative totals for December 31, 2001) Community DevelopmentTotals Block GrantCommunications20022001 Assets Investments $01,246,6381,246,6381,126,558 Accounts receivable0103,539103,539101,619 Accrued interest receivable011,84511,84513,143 Due from other funds0244,767244,767217,594 Due from other governments157,0781,202158,28017,887 Total assets$157,0781,607,9911,765,0691,476,801 Liabilities and Fund Balance Liabilities: Accounts payable10,50015,17325,67321,755 Salaries payable363,1073,1431,341 Due to other funds46,542046,54217,722 Due to other governments100,000113100,11334 Deferred revenue080800 Total liabilities157,07818,473175,55140,852 Fund balance: Unreserved - undesignated01,589,5181,589,5181,435,949 Total liabilities and fund balance$157,0781,607,9911,765,0691,476,801 Page 56 CITY OF EDINA, MINNESOTA Special Revenue Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 2002 (with comparative totals for year ended December 31, 2001) Community DevelopmentTotals Block GrantCommunications20022001 Revenues: Franchise fees$0418,153418,153473,702 Intergovernmental: Federal grants374,4330374,433106,031 Investment income0118,782118,78276,844 Other revenue07,8997,8993,965 Total revenues374,433544,834919,267660,542 Expenditures: Current: Other: Personal services6,61252,41359,02543,973 Contractual services367,821269,487637,308268,702 Commodities028,08628,08622,808 Fixed charges039,02439,02435,880 Capital outlay02,2552,2551,147 Total expenditures374,433391,265765,698372,510 Excess of revenues over expenditures0153,569153,569288,032 Fund balance--January 1 01,435,9491,435,9491,147,917 Fund balance--December 31$01,589,5181,589,5181,435,949 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 City Hall Debt Service Fund was established to finance and account for payment of principal and interest on public project revenue bonds issued. Financing of this debt service comes primarily from annual property tax appropriation. Page 58 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Balance Sheet December 31, 2002 (with comparative totals for December 31, 2001) GeneralCity Hall DebtDebtTotals AssetsServiceService20022001 Cash$0340,066340,0660 Taxes Receivable: Delinquent15,329015,32914,785 Allowance for uncollectible taxes(15,329)0(15,329)(14,785) Due from other funds898,476309,0961,207,572844,736 Due from other governments3,56903,5694,681 Total assets$902,045649,1621,551,207849,417 Liabilities and Fund Balance Fund balance: Reserved for debt service902,045649,1621,551,207849,417 Total fund balance902,045649,1621,551,207849,417 Total liabilities and fund balance$902,045649,1621,551,207849,417 Page 59 CITY OF EDINA, MINNESOTA Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance Year ended December 31, 2002 (with comparative totals for year ended December 31, 2001) GeneralCity Hall DebtDebtTotals ServiceService20022001 Revenues: Taxes$737,7901,000,0001,737,790724,434 Special assessments000684,660 Interest on funds held with fiscal agent00083,407 737,7901,000,0001,737,7901,492,501 Expenditures: Current: Other0002,000 Debt service: Bond principal5,885,00005,885,0003,740,000 Interest and fiscal charges2,743,642350,8383,094,4803,148,719 Total expenditures8,628,642350,8388,979,4806,890,719 Excess (deficiency) of revenue over expenditures(7,890,852)649,162(7,241,690)(5,398,218) Other financing sources (uses): Operating transfer in (out): HRA10,493,480010,493,4806,015,411 Payments for refunding bonds(2,550,000)0(2,550,000)(15,810,000) Total other financing sources (uses)7,943,48007,943,480(9,794,589) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses52,628649,162701,790(15,192,807) Fund balance - January 1849,4170849,41716,712,468 Residual equity transfer out000(670,244) Fund balance - December 31$902,045649,1621,551,207849,417 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. 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, 2002 (with comparative totals for December 31, 2001) Housing and Redevelopment Authority ofTotals AssetsConstructionEdinaRevolving20022001 Cash$039,827039,82741,109 Investments013,990,51019,748,62133,739,13127,743,004 Accounts receivable0110,9432,340113,2837,731 Accrued interest receivable068,55330,64199,194171,811 Special assessments receivable: Current001,993 1,993 11,278 Delinquent004,1214,1215,614 Deferred003,018,7483,018,7483,009,928 Bloomington0072,40072,40084,467 Due from other funds 040,193674,512714,70562,294 Due from other governments031,6002,74834,348890,082 Total assets$014,281,62623,556,12437,837,75032,027,318 Liabilities and Fund Balance Liabilities: Accounts payable261,65916,123584,124861,9061,616,409 Salaries payable002,3822,3823,080 Contracts payable146,20349,69131,015226,909439,279 Due to other funds4,221,616004,221,6161,848,227 Due to other governments2,230019,57621,806100,309 Deposits payable20,2890020,2893,107 Taxes Payable0072,40072,40041,196 Deferred revenue003,024,8623,024,8623,635,711 Total liabilities4,651,99765,8143,734,3598,452,1707,687,318 Fund balance(deficit): Reserved for encumbrances1,551,0460826,7112,377,7571,392,080 Reserved for special projects00257,472257,47278,342 Unreserved: Designated0018,737,58218,737,5828,197,305 Unreserved--undesignated(6,203,043)14,215,81208,012,76914,672,273 Total fund balance (deficit)(4,651,997)14,215,81219,821,76529,385,58024,340,000 Total liabilities and fund balance$014,281,62623,556,12437,837,75032,027,318 Page 62 CITY OF EDINA, MINNESOTA Capital Project Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Year ended December 31, 2002 (with comparative totals for year ended December 31, 2001) Housing and Redevelopment Authority ofTotals ConstructionEdinaRevolving20022001 Revenues: Tax increments$07,053,83607,053,8369,309,360 Special assessments00998,908998,908401,433 Intergovernmental984,4360107,3241,091,7603,322,351 Charges for services0047,33647,33652,506 Investment income0490,030418,011908,0411,040,141 Sale and rental of property01,396,6501,4291,398,0794,012,632 Other revenues0236141,552141,788164,414 Total revenues984,4368,940,7521,714,56011,639,74818,302,837 Expenditures: Current: Other: Personal services067,412107,006174,418188,678 Professional fees0109,090152,818261,908218,768 Other4,270614,71575,673694,6581,400,414 Construction costs5,023,2741,513,4853,725,85110,262,6109,342,455 Total expenditures5,027,5442,304,7024,061,34811,393,59411,150,315 Excess (deficiency) of revenues over expenditures(4,043,108)6,636,050(2,346,788)246,1547,152,522 Other financing sources (uses): Operating transfers in (out): General fund00900,000900,0000 General debt service fund0(10,493,480)0(10,493,480)(6,015,411) Liquor fund00625,000625,000100,000 Utility fund00290,000290,000100,000 Art Center fund00(15,010)(15,010)(8,252) Edinborough Park fund00(54,343)(54,343)(56,300) Arena fund00(90,157)(90,157)(75,189) Proceeds from sale of bonds01,400,00012,237,41613,637,4160 Total other financing sources (uses)0(9,093,480)13,892,9064,799,426(5,955,152) Excess (deficiency) of revenues and other financing sources over expenditures and other financing uses(4,043,108)(2,457,430)11,546,1185,045,5801,197,370 Fund balance (deficit) --January 1(608,889)16,673,2428,275,64724,340,00022,472,386 Residual equity transfer in0000670,244 Fund balance (deficit)--December 31$(4,651,997)14,215,81219,821,76529,385,58024,340,000 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, 2002 (with comparative totals for December 31, 2001) Swimming AssetsUtilitiesLiquorPool Current assets: Cash168,59575,6610 Petty cash and change funds04,4400 Investments4,510,03200 Cash with fiscal agents000 Receivables: Accounts06,5990 Customers1,927,59400 Interest12,09400 Special Assessments114,37400 Due from other funds340,068666,251464,004 Due from other governments2,1770173 Inventory72,7121,090,1300 Prepaid expenses000 Total current assets7,147,6461,843,081464,177 Property and equipment, net27,157,3051,594,8772,746,003 Discounts on bonds17,998014,262 Total assets$34,322,949 3,437,9583,224,442 Liabilities and Fund Equity Current liabilities: Accounts payable244,805363,883119,676 Salaries payable43,18848,7390 Contracts payable57,01500 Accrued interest payable43,247030,518 Due to other funds000 Due to other governments22,356105,6765 Compensated absences payable153,884112,7700 Total current liabilities564,495631,068150,199 Long-term liabilities: Deposits payable86,81000 Deferred revenue06400 Obligation under capital lease000 Bonds payable2,630,00001,570,000 Total long-term liabilities2,716,8106401,570,000 Total liabilities3,281,305631,7081,720,199 Fund equity: Contributed capital20,13501,255,781 Retained earnings (deficit): Reserved for debt service438,7080155,223 Unreserved-undesignated30,582,8012,806,25093,239 Total retained earnings (deficit)31,021,5092,806,250248,462 Total liabilities and fund equity $34,322,949 3,437,9583,224,442 Page 65 GolfArtEdinborough ParkTotals CourseArenaCenterCentennial Lake20022001 0000244,2560 4,4007007251,50011,76511,765 79,3060004,589,33810,407,669 2031,82705082,5383,287,331 7,089124,63406,522144,844132,472 00001,927,5941,934,726 00050,68162,77567,734 0000114,374115,171 191,52234,7906636,8751,733,5762,148,220 00002,3502,213 27,481013,54901,203,8721,103,909 000004,191 310,001161,95114,34096,08610,037,28219,215,401 6,705,7224,107,664358,375542,55043,212,49641,345,383 36,89813,4740082,63294,433 7,052,6214,283,089372,715638,63653,332,41060,655,217 40,64226,67919,47020,199835,354842,906 41,19021,1968,97232,303195,588126,377 2,00000059,01527,019 92,41918,36300184,547310,891 00000783,168 5,2104899602,403137,099127,476 207,94782,59739,18390,663687,044622,784 389,408149,32468,585145,5682,098,6472,840,621 11,31100098,12186,823 18,90200019,5425,040 7,60068,400019,00095,000155,000 4,930,0001,390,0000010,520,00017,625,000 4,967,8131,458,400019,00010,732,663 17,871,863 5,357,2211,607,72468,585164,56812,831,31020,712,484 02,912,094254,075396,5614,838,6465,284,049 703,430222,190001,519,5511,607,120 991,970(458,919)50,05577,50734,142,90333,051,564 1,695,400(236,729)50,05577,50735,662,45434,658,684 7,052,6214,283,089372,715638,63653,332,41060,655,217 Page 66 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) December 31, 2002 (with comparative totals for December 31, 2001) Swimming UtilitiesLiquorPool Operating revenues: Charges for sales and services: Sales - Liquor$09,355,3660 Sales - Retail002,534 Sales - Utility8,436,85600 Sales - Concessions00110,732 Memberships00421,339 Admissions00207,880 Building rental0013,843 Rental of equipment000 Greens fees000 Other fees124,431022,633 Total operating revenues8,561,2879,355,366778,961 Operating expenses: Cost of sales and services11,1496,965,83827,515 Personal services933,676846,319206,599 Contractual services4,376,011268,14755,672 Commodities578,237102,73952,605 Central services526,728291,08437,200 Depreciation971,01356,170168,125 Total operating expenses7,396,8148,530,297547,716 Operating income (loss)1,164,473825,069231,245 Nonoperating revenues (expenses): Intergovernmental127,16000 Investment income90,35707,821 Interest from fiscal agents000 Donations000 Miscellaneous revenue (expense)2,77906,490 Interest and fiscal charges(105,205)0(68,199) Interest on capital lease 000 Gain (loss) on disposal of capital assets(139,206)(23,135)(248,352) Amortization of bond discount(2,959)0(1,105) Total nonoperating revenues (expenses)(27,074)(23,135)(303,345) Income (loss) before operating transfers1,137,399801,934(72,100) Operating transfers in (out): General fund000 Art center fund0(114,000)0 Liquor store fund000 Arena fund000 Revolving fund(290,000)(625,000)0 Total operating transfers, net(290,000)(739,000)0 Net income (loss) 847,39962,934(72,100) Add depreciation on contributed assets4430110,263 Increase (decrease) in retained earnings847,84262,93438,163 Retained earnings (deficit) - January 130,173,6672,743,316210,299 Retained earnings (deficit) - December 31$31,021,509 2,806,250248,462 Page 67 GolfArtEdinborough ParkTotals CourseArenaCenterCentennial Lake20022001 00009,355,3669,074,112 228,46227,91057,0570315,963355,413 00008,436,8568,293,547 259,1320023,391393,255373,534 132,1883,35231,08826,405614,372566,502 341,77659,043071,001679,700644,705 60,0281,014,1890231,7731,319,8331,257,001 325,7703,717060,356389,843384,163 1,702,06000152,9111,854,9711,970,280 378,041109,793382,246485,6231,502,7671,515,604 3,427,4571,218,004470,3911,051,46024,862,92624,434,861 282,4881,28634,13110,9477,333,3547,241,612 1,359,467428,667215,113676,8844,666,7254,472,574 400,165390,984232,864359,1766,083,0196,142,852 328,16443,20260,407173,0971,338,4511,153,468 348,204116,97670,752225,9721,616,9161,521,300 450,542325,13633,911137,0182,141,9152,142,943 3,169,0301,306,251647,1781,583,09423,180,38022,674,749 258,427(88,247)(176,787)(531,634)1,682,5461,760,112 0000127,160128,069 3,1411410395,875497,335490,708 00000137,040 0021,723021,72324,729 43,13335,946014,361102,709190 (205,923)(37,387)00(416,714)(647,970) (610)(5,486)0(1,524)(7,620)(10,483) (197,777)(5,918)(18,922)(48,172)(681,482)(155,229) (5,491)(2,246)00(11,801)(39,118) (363,527)(14,950)2,801360,540(368,690)(72,064) (105,100)(103,197)(173,986)(171,094)1,313,8561,688,048 0000046,000 0000(114,000)(104,000) 00114,0000114,000239,000 00000(135,000) 090,15715,01054,343(755,490)(60,259) 090,157129,01054,343(755,490)(14,259) (105,100)(13,040)(44,976)(116,751)558,3661,673,789 2,000187,35220,650124,696445,404440,951 (103,100)174,312(24,326)7,9451,003,7702,114,740 1,798,500(411,041)74,38169,56234,658,68432,543,944 1,695,400(236,729)50,05577,50735,662,45434,658,684 Page 68 CITY OF EDINA, MINNESOTA Enterprise Funds Combining Statement of Cash Flows December 31, 2002 (with comparative totals for year ended December 31, 2001) Swimming Cash flows from operating activities:UtilitiesLiquorPool Operating income$1,164,473825,069231,245 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation expense971,01356,170168,125 Changes in assets and liabilities: (Increase) decrease in accounts receivable0(5,099)0 (Increase) decrease in customer accounts receivable7,13200 (Increase) decrease in special assessments receivable79700 (Increase) decrease in due from other funds(340,068)944,725(39,589) (Increase) decrease in due from other governments360(173) (Increase) decrease in prepaid expense000 (Increase) decrease in inventory64,577(166,023)0 Increase (decrease) in accounts payable99,453112,302(129,122) Increase (decrease) in salaries payable16,73414,0250 Increase (decrease) in contracts payable50,6920(10,125) Increase (decrease) in accrued interest payable(4,855)03,652 Increase (decrease) in due to other funds(783,168)00 Increase (decrease) in due to other governments9,950(235)(278) Increase (decrease) in compensated absences payable15,34416,4830 Increase (decrease) in deposits payable18,28000 Increase (decrease) in deferred revenue06400 Intergovernmental grants127,16000 Miscellaneous revenue2,77906,490 Total adjustments255,856972,988(1,020) Net cash provided by (used in) operating activities1,420,3291,798,057230,225 Cash flows from noncapital financing activities: Donations 000 Operating transfer in--General Fund000 Operating transfer (out)--Art Center0(114,000)0 Operating transfer in--Liquor Store Fund000 Operating transfer (out)--Arena000 Operating transfer in (out)--Revolving fund(290,000)(625,000)0 Net cash provided provided by (used in) noncapital financing activities(290,000)(739,000)0 Cash flows from capital and related financing activities: Net acquisition of capital assets(1,965,178)(960,261)(905,754) Loss on disposal of capital assets(139,206)(23,135)(248,352) Proceeds from revenue bonds000 Principal paid on revenue bonds(325,000)0(545,000) Increase on bond discount000 Principal paid on capital lease000 Interest received from fiscal agent000 Interest paid on capital lease000 Interest paid on bonds(105,205)0(68,199) Net cash provided by (used in) capital and related financing activities(2,534,589)(983,396)(1,767,305) Cash flows from investing activities: Proceeds from sale of investments1,487,5170997,064 Purchase of investments000 Decrease in interest receivable(5,019)00 Investment income90,35707,821 Net cash provided by (used in) investing activities1,572,85501,004,885 Net increase (decrease) in cash and cash equivalents168,59575,661(532,195) Cash and equivalents, beginning of year04,440532,195 Cash and equivalents, end of year168,59580,1010 Page 69 GolfArtEdinborough ParkTotals CourseArenaCenterCentennial Lake20022001 258,427(88,247)(176,787)(531,634)1,682,5461,760,112 450,542325,13633,911137,0182,141,9152,142,943 (6,104)(9,533)1008,264(12,372)(17,957) 00007,132235,499 0000797(38,714) (87,728)(33,837)904(29,763)414,644(587,830) 0000(137)2,314 (2,010)2,13701,0061,13353,497 1,04803,4930(96,905)3,937 (80,221)2,247(7,071)(5,140)(7,552)117,078 13,1668,5853,34913,35269,2115,496 (8,571)00031,996(67,544) (100,444)(24,697)00(126,344)(16,472) 0000(783,168)783,168 122(30)(281)3759,623(228,205) 23,5607,6171,861(605)64,26056,690 (3,482)(3,500)0011,29836,230 18,902(5,040)0014,5020 0000127,160128,069 43,13335,946014,361102,709190 261,913305,03136,266138,8681,969,9022,608,389 520,340216,784(140,521)(392,766)3,652,4484,368,501 0021,723021,72324,729 0000046,000 0000(114,000)(104,000) 00114,0000114,000239,000 00000(135,000) 090,15715,01054,343(755,490)(60,259) 090,157150,73354,343(733,767)10,470 (96,203)(84,238)8,710(6,103)(4,009,027)(2,134,388) (197,777)(5,918)(18,922)(48,172)(681,482)(155,229) 000004,620,000 (4,695,000)(1,540,000)00(7,105,000)(780,000) 00000(54,097) (4,800)(43,200)0(12,000)(60,000)(55,000) 00000137,040 (610)(5,486)0(1,524)(7,620)(10,483) (205,923)(37,387)00(416,714)(647,970) (5,200,313)(1,716,229)(10,212)(67,799)(12,279,843)919,873 1,925,9341,407,816005,818,3310 00000(5,827,521) 0009,9784,95939,252 3,1411410395,875497,335490,708 1,929,0751,407,9570405,8536,320,625(5,297,561) (2,750,898)(1,331)0(369)(3,040,537)1,283 2,755,5013,8587252,3773,299,0963,297,813 4,6032,5277252,008258,5593,299,096 Page 70 CITY OF EDINA, MINNESOTA Utilities Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Cash$168,5950 Investments4,510,0325,997,549 Receivables:0 Customers1,927,5941,934,726 Interest12,0947,075 Assessments114,374115,171 Due from other funds340,0680 Due from other governments2,1772,213 Inventory72,712137,289 Total current assets7,147,6468,194,023 Property and equipment, net27,157,30526,163,139 Discount on bonds17,99820,957 Total assets$34,322,94934,378,119 Liabilities and Retained Earnings Current liabilities: Accounts payable244,805145,352 Salaries payable43,18826,454 Contracts payable57,0156,323 Accrued interest payable43,24748,102 Due to other funds0783,168 Due to other governments22,35612,406 Compensated absences payable153,884138,540 Total current liabilities564,4951,160,345 Long-term liabilities: Deposits payable86,81068,530 Bonds payable2,630,0002,955,000 Total liabilities3,281,3054,183,875 Fund equity: Contributed capital20,13520,577 Retained earnings: Reserved for debt service438,708274,998 Unreserved--undesignated30,582,80129,898,669 Total retained earnings31,021,50930,173,667 Total liabilities and retained earnings$34,322,94934,378,119 Page 71 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Operating revenues: Storm sewer charges$694,628585,378 Water charges2,745,3482,909,324 Sewer charges4,704,1404,496,238 Recycling281,591277,988 Sale of meters 11,14924,619 Other Penalties51,45462,475 State Health72,97772,719 Total operating revenues8,561,2878,428,741 Operating expenses: Cost of sales and services11,14937,816 Personal services933,676862,200 Contractual services General costs1,097,4091,068,006 Recycling charges365,023355,695 Disposal charges2,913,5792,834,639 Commodities General costs423,660341,010 Water purchased154,577152,089 Central services526,728498,192 Depreciation971,013912,983 Total operating expenses7,396,8147,062,630 Operating income1,164,4731,366,111 Nonoperating revenues (expenses): Intergovernmental 127,160128,069 Investment income90,357127,339 Miscellaneous revenue (expense)2,7790 Interest and fiscal charges(105,205)(116,794) Loss on disposal of capital assets(139,206)(67,606) Amortization of bond discount(2,959)(2,959) Total nonoperating expenses(27,074)68,049 Net income before operating transfers1,137,3991,434,160 Operating transfers out: Revolving fund(290,000)(100,000) Total operating transfers(290,000)(100,000) Net income847,3991,334,160 Add depreciation on contributed assets443443 Increase in retained earnings847,8421,334,603 Retained earnings--January 130,173,66728,839,064 Retained earnings--December 31$31,021,50930,173,667 Page 72 CITY OF EDINA, MINNESOTA Utilities Fund Statement of Cash Flows Year ended December 31, 2002 (with comparative amounts for year ended year ended December 31,2001) 20022001 Cash flows from operating activities: Operating income $1,164,4731,366,111 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense971,013912,983 Changes in assets and liabilities: (Increase) decrease in customer accounts receivable7,132235,499 (Increase) decrease in assessments receivable797(38,714) (Increase) decrease in due from other funds(340,068)179,441 (Increase) decrease in due from other governments362,314 (Increase) decrease in inventory64,577(49,085) Increase (decrease) in accounts payable99,453(192,785) Increase in salaries payable16,7341,942 Increase (decrease) in contracts payable50,692(88,240) Increase (decrease) in accrued interest payable(4,855)(4,542) Increase (decrease) in due to other funds(783,168)783,168 Increase (decrease) in due to other governments9,950(229,095) Increase (decrease) in compensated absences payable15,344(7,517) Increase in deposits payable18,28032,430 Intergovernmental grants127,160128,069 Miscellaneous revenue2,7790 Total adjustments255,8561,665,868 Net cash provided by operating activities1,420,3293,031,979 Cash flows from noncapital financing activities: Operating transfer out(290,000)(100,000) Net cash used in noncapital financing activities(290,000)(100,000) Cash flows from capital and related financing activities: Net acquisition of capital assets(1,965,178)(1,184,114) Loss on disposal of capital assets(139,206)(67,606) Principal paid on revenue bonds(325,000)(310,000) Interest paid on bonds(105,205)(116,794) Net cash used in capital financing activities(2,534,589)(1,678,514) Cash flows from investing activities: Proceeds from sale of investments1,487,5170 Purchase of investments0(1,417,401) Increase of interest receivable(5,019)36,597 Investment income90,357127,339 Net cash provided by (used in) investing activities1,572,855(1,253,465) Net increase in cash and cash equivalents168,5950 Cash and cash equivalents, beginning of year00 Cash and cash equivalents, end of year168,5950 Page 73 CITY OF EDINA, MINNESOTA Liquor Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Cash$75,6610 Petty cash and change funds4,4404,440 Accounts receivable6,5991,500 Due from other funds666,2511,610,976 Inventory1,090,130924,107 Total current assets1,843,0812,541,023 Property and equipment, net1,594,877690,786 Total assets$3,437,9583,231,809 Liabilities and Retained Earnings Current liabilities: Accounts payable363,883251,581 Salaries payable48,73934,714 Due to other governments105,676105,911 Compensated absences payable112,77096,287 Total current liabilities631,068488,493 Long-term liabilities: Deferred revenue6400 Total liabilities631,708488,493 Retained earnings: Unreserved--undesignated2,806,2502,743,316 Total liabilities and retained earnings $3,437,9583,231,809 Page 74 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2002 (with comparative totals for year ended December 31, 2001) 20022001 Operating revenues: Sales - Liquor Deposits/refunds$49258 Liquor2,627,0212,580,511 Wine3,799,3433,663,315 Beer2,627,7222,515,077 Miscellaneous301,231314,951 Total operating revenues9,355,3669,074,112 Operating expenses: Cost of sales and services6,965,8386,760,040 Personal services846,319784,414 Contractual services268,147250,005 Commodities102,73956,556 Central services291,084271,428 Depreciation56,17048,571 Total operating expenses8,530,2978,171,014 Operating income825,069903,098 Nonoperating revenues (expenses): Miscellaneous revenue (expense)020 Loss on disposal of capital assets(23,135)(17,750) Total nonoperating revenues (expenses)(23,135)(17,730) Income before operating transfer out801,934885,368 Operating transfer out: Art Center(114,000)(104,000) Operating transfer out: Arena0(135,000) Operating transfer out: Revolving fund(625,000)(100,000) (739,000)(339,000) Net income (loss)62,934546,368 Retained earnings--January 12,743,3162,196,948 Retained earnings--December 31$2,806,2502,743,316 Page 75 CITY OF EDINA, MINNESOTA Liquor Fund Statement of Cash Flows Year ended December 31, 2001 (with comparative amounts for year ended December 31, 2000) 20012000 Cash flows from operating activities:$ Operating income 825,069984,077 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense56,17057,609 Changes in assets and liabilities: (Increase) decrease in accounts receivable(5,099)(2,993) (Increase) decrease in due from other funds944,72594,144 Increase in inventory(166,023)(98,963) Increase (decrease) in accounts payable112,302(104,557) Increase in salaries payable14,0253,447 Increase (decrease) in due to other governments(235)(1,091) Increase in compensated absences payable16,48362,072 Increase in deferred revenue6400 Miscellaneous revenue (expense)0243 Total adjustments972,9889,911 Net cash provided by operating activities1,798,057993,988 Cash flows from noncapital financing activities: Decrease in advance to other funds0145,012 Operating transfer (out)--Art Center(114,000)(139,000) Operating transfer (out)--Arena0(81,000) Operating transfer (out)--Revolving fund(625,000)(919,000) Net cash used in noncapital financing activities(739,000)(993,988) Cash flows from capital and related financing activities: Acquisition of capital assets(960,261)23,187 Loss on disposal of capital assets(23,135)(23,187) Net cash used in capital financing activities(983,396)0 Net increase in cash and cash equivalents75,6610 Cash and cash equivalents, beginning of year4,4404,440 Cash and cash equivalents, end of year$80,1014,440 Page 76 CITY OF EDINA, MINNESOTA Liquor Fund Schedule of Revenue and Operating Expenses by Location Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) Totals 50th StreetYorkdaleVernon20022001 Operating revenues: Sales - Liquor Deposits/refunds$159(286)17649258 Liquor471,9311,329,089826,0012,627,0212,580,511 Wine891,6261,750,5561,157,1613,799,3433,663,315 Beer490,1151,388,208749,3992,627,7222,515,077 Miscellaneous62,785136,609101,837301,231314,951 Total operating revenues1,916,6164,604,1762,834,5749,355,3669,074,112 Operating expenses: Selling: Cost of sales and services1,409,0563,437,4822,119,3006,965,8386,760,040 Personal services128,286230,101170,294528,681498,618 Contractual services12,66312,46414,81439,94138,484 Commodities9,99019,02111,50040,51141,988 Total selling1,559,9953,699,0682,315,9087,574,9717,339,130 Occupancy: Personal services3521,8812,3564,5897,967 Contractual services18,76731,09537,35487,21676,913 Commodities2,7873,77745,53252,0965,936 Depreciation14,36916,57925,22256,17048,571 Total occupancy36,27553,332110,464200,071139,387 Administrative: Personal services97,071115,303100,675313,049277,829 Contractual services32,71864,92743,345140,990134,608 Commodities1,0865,0114,03510,1328,632 Central services73,020115,632102,432291,084271,428 Total administrative203,895300,873250,487755,255692,497 Total operating expenses1,800,1654,053,2732,676,8598,530,2978,171,014 Operating income$116,451550,903157,715825,069903,098 Page 77 CITY OF EDINA, MINNESOTA Swimming Pool Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Investments$0997,064 Cash with fiscal agents0532,195 Accounts receivable00 Due from other funds464,004424,415 Due from other governments1730 Total current assets464,1771,953,674 Property and equipment, net2,746,0032,008,374 Discount on bonds14,26215,367 Total assets$3,224,4423,977,415 Liabilities and Retained Earnings Current liabilities: Accounts payable119,676248,798 Contracts payable010,125 Accrued interest payable30,51826,866 Due to other governments5283 Total current liabilities150,199286,072 Long-term liabilities Bonds payable1,570,0002,115,000 Total liabilities1,720,1992,401,072 Fund equity: Contributed capital1,255,7811,366,044 Retained earnings: Reserved for debt service155,22332,500 Unreserved--undesignated93,239177,799 Total retained earnings248,462210,299 Total liabilities and fund equity $3,224,4423,977,415 Page 78 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Operating revenues: Sales - retail$2,5343,682 Sales - concessions110,73285,538 Memberships421,339355,164 Admissions207,880153,233 Building rental13,84316,013 Other fees Lessons22,63317,280 Total operating revenues778,961630,910 Operating expenses: Cost of sales and services27,51525,494 Personal services206,599179,115 Contractual services55,67289,178 Commodities52,60537,522 Central services37,20033,972 Depreciation168,125143,610 Total operating expenses547,716508,891 Operating income 231,245122,019 Nonoperating revenue (expenses): Investment income7,8212,421 Interest from fiscal agent022,200 Miscellaneous revenue6,4900 Interest and fiscal charges(68,199)(54,307) Loss on disposal of capital assets(248,352)(25,176) Amortization of bond discount(1,105)(2,096) Total nonoperating expenses(303,345)(56,958) Net income (loss)(72,100)65,061 Add depreciation on contributed assets110,263102,220 Increase in retained earnings38,163167,281 Retained earnings --January 1210,29943,018 Retained earnings --December 31$248,462210,299 Page 79 CITY OF EDINA, MINNESOTA Swimming Pool Fund Statement of Cash Flows Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Cash flows from operating activities: Operating income$231,245122,019 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense168,125143,610 Changes in assets and liabilities: Increase in accounts receivable053 Increase (decrease) in due from other funds(39,589)(181,415) Increase (decrease) in due from other governments(173)0 Increase (decrease) in accounts payable(129,122)246,781 Increase (decrease) in contracts payable(10,125)10,125 Increase (decrease) in accrued interest payable3,652(618) Increase (decrease) in due to other governments (278)252 Miscellaneous revenue 6,4900 Total adjustments(1,020)218,788 Net cash provided by operating activities230,225340,807 Cash flows from capital and related financing activities: Net acquisition of capital assets(905,754)(291,640) Loss on disposal of capital assets(248,352)(25,176) Proceeds from revenue bonds01,040,000 Principal paid on revenue bonds(545,000)(25,000) Increase on bond discount0(12,172) Interest received from fiscal agent022,200 Interest paid on bonds(68,199)(54,307) Net cash provided by (used in) capital and related financing activities(1,767,305)653,905 Cash flows from investing activities: Proceeds from sale of investments997,0640 Purchase of investments 0(997,064) Investment income 7,8212,421 Net cash provided by (used in) investing activities1,004,885(994,643) Net increase (decrease) in cash and cash equivalents(532,195)69 Cash and cash equivalents, beginning of year532,195532,126 Cash and cash equivalents, end of year $0532,195 Page 80 CITY OF EDINA, MINNESOTA Golf Course Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Petty cash and change funds$4,4004,400 Investments79,3062,005,240 Cash with fiscal agents2032,751,101 Accounts receivable7,089985 Due from other funds191,522103,794 Inventory27,48125,471 Prepaid expenses01,048 Total current assets310,0014,892,039 Property and equipment, net6,705,7227,060,061 Discount on bonds36,89842,389 Total assets$7,052,62111,994,489 Liabilities and Retained Earnings Current liabilities: Accounts payable40,642120,863 Salaries payable41,19028,024 Contracts payable2,00010,571 Accrued interest payable92,419192,863 Due to other governments5,2105,088 Compensated absences payable207,947184,387 Total current liabilities389,408541,796 Long-term liabilities: Deposits payable11,31114,793 Deferred revenue18,9020 Obligation under capital lease7,60012,400 Bonds payable4,930,0009,625,000 Total liabilities5,357,22110,193,989 Fund Equity: Contributed capital02,000 Retained earnings: Reserved for debt service703,4301,115,031 Unreserved--undesignated991,970683,469 Total retained earnings1,695,4001,798,500 Total liabilities and retained earnings$7,052,62111,994,489 Page 81 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Operating revenues: Sales - retail Pro shop$222,024260,948 Miscellaneous6,4383,817 Sales - concessions259,132266,438 Memberships132,188147,406 Admissions341,776363,992 Building rental60,02867,412 Rental of equipment Golf cars297,560297,880 Golf carts/clubs26,77825,813 Miscellaneous equipment1,432878 Green fees1,702,0601,809,966 Other fees Driving range328,845342,477 Lessons48,17663,598 Miscellaneous1,020900 Total operating revenues3,427,4573,651,525 Operating expenses: Cost of sales and services282,488368,721 Personal services1,359,4671,378,623 Contractual services400,165518,200 Commodities328,164278,340 Central services348,204322,380 Depreciation450,542512,198 Total operating expenses3,169,0303,378,462 Operating income258,427273,063 Nonoperating revenues (expenses): Investment income3,1415,274 Interest from fiscal agent0114,840 Miscellaneous revenue43,133170 Interest and fiscal charges(205,923)(389,805) Interest on capital lease (610)(839) Gain (loss) on disposal of capital assets(197,777)(12,035) Amortization of bond discount(5,491)(24,485) Total nonoperating expenses(363,527)(306,880) Net loss(105,100)(33,817) Add depreciation on contributed assets2,000800 Decrease in retained earnings(103,100)(33,017) Retained earnings--January 11,798,5001,831,517 Retained earnings--December 31$1,695,4001,798,500 Page 82 CITY OF EDINA, MINNESOTA Golf Course Fund Statement of Cash Flows Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Cash flows from operating activities:$ Operating income 258,427273,063 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense450,542512,198 Changes in assets and liabilities: (Increase) decrease in accounts receivable(6,104)1,474 Increase in due from other funds(87,728)(48,821) (Increase) decrease in prepaid expense(2,010)56,640 (Increase) decrease in inventory1,048(1,048) Increase (decrease) in accounts payable(80,221)59,147 Increase in salaries payable13,1661,480 Increase (decrease) in contracts payable(8,571)10,571 Increase (decrease) in accrued interest payable(100,444)(8,267) Increase (decrease) in due to other governments122(523) Increase in compensated absences payable23,56020,216 Increase (decrease) in deposits payable(3,482)3,800 Increase in deferred revenue18,9020 Miscellaneous revenue43,133170 Total adjustments261,913607,037 Net cash provided by operating activities520,340880,100 Cash flow from capital and related financing activities: Net acquisition of capital assets(96,203)(426,563) Gain (loss) on disposal of capital assets(197,777)(12,035) Proceeds from revenue bonds02,190,000 Principal paid on revenue bonds(4,695,000)(325,000) Increase on bond discount0(25,831) Principal paid on capital lease(4,800)(4,400) Interest received from fiscal agent0114,840 Interest paid on capital lease(610)(839) Interest paid on bonds(205,923)(389,805) Net cash provided by (used in) capital and related financing activities(5,200,313)1,120,367 Cash flow from investing activities: Proceeds from sale of investments1,925,9340 Purchase of investments 0(2,005,240) Investment income 3,1415,274 Net cash provided by (used in) investing activities1,929,075(1,999,966) Net increase (decrease) in cash and cash equivalents(2,750,898)501 Cash and cash equivalents, beginning of year2,755,5012,755,000 Cash and cash equivalents, end of year 4,6032,755,501 Page 83 CITY OF EDINA, MINNESOTA Golf Course Fund Schedule of Operating Expenses Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Administration Personal services$794,630842,944 Contractual services181,546239,077 Commodities145,604166,010 Central services326,088301,824 Total administration1,447,8681,549,855 Clubhouse Personal services52,41536,994 Contractual services88,17897,020 Commodities45,86535,157 Total clubhouse186,458169,171 Grill: Cost of sales and services97,160101,795 Personal services105,99895,221 Contractual services15,90416,747 Commodities22,09026,001 Total grill241,152239,764 Golf Cars: Personal services44,48834,098 Contractual services3,9405,989 Commodities67,8829,694 Total range and grill116,31049,781 Range: Personal services108,952119,019 Contractual services2,1281,982 Commodities15,42515,246 Total range and grill126,505136,247 Richards: Cost of sales and services8,9408,887 Personal services105,957108,814 Contractual services11,09117,174 Commodities13,88219,012 Total Richards139,870153,887 Pro Shop Cost of sales and services175,223256,778 Personal services54,82954,291 Contractual services2,4916,129 Commodities2,2912,660 234,834319,858 Golf dome: Cost of sales and services1,1651,261 Personal services92,19887,242 Contractual services94,887134,082 Commodities15,1254,560 Central services22,11620,556 Total golf dome225,491247,701 Depreciation450,542512,198 Total operating expenses$3,169,0303,378,462 Page 84 CITY OF EDINA, MINNESOTA Arena Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Petty cash and change funds$700700 Investments01,407,816 Cash with fiscal agents1,8273,158 Accounts receivable124,634115,101 Due from other funds34,790953 Prepaid expenses02,137 Total current assets161,9511,529,865 Property and equipment, net4,107,6644,348,562 Discount on bonds13,47415,720 Total assets$4,283,0895,894,147 Liabilities and Retained Earnings Current liabilities: Accounts payable26,67924,432 Salaries payable21,19612,611 Accrued interest payable18,36343,060 Due to other governments489519 Compensated absences payable82,59774,980 Total current liabilities149,324155,602 Long-term liabilities: Deposits payable03,500 Deferred revenue05,040 Obligation under capital lease68,400111,600 Bonds payable1,390,0002,930,000 Total liabilities1,607,7243,205,742 Fund equity: Contributed capital2,912,0943,099,446 Retained earnings: Reserved for debt service222,190184,591 Unreserved--undesignated(458,919)(595,632) Total retained earnings (deficit)(236,729)(411,041) Total liabilities and retained earnings$4,283,0895,894,147 Page 85 CITY OF EDINA, MINNESOTA Arena Fund Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Operating revenues: Sales - retail$27,91034,410 Memberships3,3524,069 Admissions59,04366,372 Building rental1,014,189939,704 Rental of equipment3,7173,716 Other fees Lessons88,22381,948 Skate sharpening21,57017,853 Total operating revenues1,218,0041,148,072 Operating expenses: Cost of sales and services1,286933 Personal services428,667415,488 Contractual services390,984403,947 Commodities43,20244,460 Central services116,976110,316 Depreciation325,136324,101 Total operating expenses1,306,2511,299,245 Operating loss(88,247)(151,173) Nonoperating revenues (expenses): Investment income1413,418 Miscellaneous revenue35,9460 Interest and fiscal charges(37,387)(87,064) Interest on capital lease (5,486)(7,547) Loss on disposal of capital assets(5,918)(5,086) Amortization of bond discount(2,246)(9,578) Total nonoperating expenses(14,950)(105,857) Net loss before operating transfer in(103,197)(257,030) Operating transfer in: Liquor store fund0135,000 Revolving fund90,15775,189 Total operating transfers90,157210,189 Net Income (loss)(13,040)(46,841) Add depreciation on contributed assets187,352187,352 Increase (decrease) in retained earnings174,312140,511 Retained earnings (deficit)--January 1(411,041)(551,552) Retained earnings (deficit)--December 31$(236,729)(411,041) Page 86 CITY OF EDINA, MINNESOTA Arena Fund Statement of Cash Flows Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Cash flows from operating activities: Operating income (loss)$(88,247)(151,173) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense325,136324,101 Changes in assets and liabilities: Increase in accounts receivable(9,533)(6,465) (Increase) decrease in due from other funds(33,837)(385) (Increase) decrease in prepaid expenses2,137(2,137) Increase (decrease) in accounts payable2,247(15,251) Increase (decrease) in salaries payable8,585(2,291) Decrease in accrued interest payable(24,697)(3,045) Increase (decrease) in due to other governments(30)169 Increase(decrease) in compensated absences payable7,6176,540 Increase(decrease) in deposits payable(3,500)0 Increase(decrease) in deferred revenue(5,040)0 Miscellaneous revenue35,9460 Total adjustments305,031301,236 Net cash provided by (used in) operating activities216,784150,063 Cash flows from noncapital financing activities: Operating transfer in--Liquor Fund0135,000 Operating transfer in--Revolving Fund90,15775,189 Net cash provided by noncapital financing activities90,157210,189 Cash flows from capital and related financing activities: Net acquisition of capital assets(84,238)(70,257) Loss on disposal of capital assets(5,918)(5,086) Proceeds from revenue bonds01,390,000 Principal paid on revenue bonds(1,540,000)(120,000) Increase on bond discount 0(16,094) Principal paid on capital lease(43,200)(39,600) Interest paid on capital lease (5,486)(7,547) Interest paid on bonds(37,387)(87,064) Net cash provided by (used in) capital and related financing activities(1,716,229)1,044,352 Cash flows from investing activities: Proceeds from sale of investments1,407,8160 Purchase of investments 0(1,407,816) Investment income 1413,418 Net cash provided by (used in) investing activities1,407,957(1,404,398) Net increase (decrease) in cash and cash equivalents(1,331)206 Cash and cash equivalents, beginning of year3,8583,652 Cash and cash equivalents, end of year $2,5273,858 Page 87 CITY OF EDINA, MINNESOTA Art Center Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Petty cash and change funds$725725 Accounts receivable0100 Due from other funds66970 Inventory13,54917,042 Total current assets14,34018,837 Property and equipment, net358,375400,996 Total assets$372,715419,833 Liabilities and Retained Earnings Current liabilities: Accounts payable19,47026,541 Salaries payable8,9725,623 Due to other governments9601,241 Compensated absences payable39,18337,322 Total liabilities68,58570,727 Fund equity: Contributed capital254,075274,725 Retained earnings: Unreserved--undesignated50,05574,381 Total retained earnings50,05574,381 Total liabilities and retained earnings$372,715419,833 Page 88 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Operating revenues: Sales - retail$57,05752,556 Memberships31,08832,768 Other fees Class fees299,588298,617 Firing fees16,78313,284 Media studio fees65,70565,972 Misc fees170373 Total operating revenues470,391463,570 Operating expenses: Cost of goods and services34,13135,966 Personal services215,113205,249 Contractual services232,864244,171 Commodities60,40766,216 Central services70,75264,248 Depreciation33,91146,026 Total operating expenses647,178661,876 Operating loss(176,787)(198,306) Nonoperating revenues (expenses): Donations21,72324,729 Loss on disposal of capital assets(18,922)(6,726) Total nonoperating revenues (expenses)2,80118,003 Net loss before operating transfer in(173,986)(180,303) Operating transfer in Liquor store fund114,000104,000 Revolving fund15,0108,252 Total operating transfers129,010112,252 Net loss(44,976)(68,051) Add depreciation on contributed assets20,65017,201 Decrease in retained earnings(24,326)(50,850) Retained earnings--January 174,381125,231 Retained earnings-- December 31$50,05574,381 Page 89 CITY OF EDINA, MINNESOTA Art Center Fund Statement of Cash Flows Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Cash flows from operating activities: Operating loss$(176,787)(198,306) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense33,91146,026 Changes in assets and liabilities: (Increase) decrease in accounts receivable100(100) (Increase) decrease in due from other funds9047,648 (Increase) decrease in inventory3,493(1,549) Increase (decrease) in accounts payable(7,071)9,798 Increase in salaries payable3,349780 Increase (decrease) in due to other governments(281)506 Increase in compensated absences payable1,8616,917 Total adjustments36,26670,026 Net cash used in operating activities(140,521)(128,280) Cash flows from noncapital financing activities: Donations 21,72324,729 Operating transfer in--Liquor Store114,000104,000 Operating transfer in--Revolving fund15,0108,252 Net cash provided by noncapital financing activities150,733136,981 Cash flow from capital and related financing activities: Net acquisition of capital assets8,710(1,525) Loss on disposal of capital assets(18,922)(6,726) Net cash used in capital and related financing activities(10,212)(8,251) Net increase in cash and cash equivalents0450 Cash and cash equivalents, beginning of year725275 Cash and cash equivalents, end of year 725725 Page 90 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Balance Sheet December 31, 2002 (with comparative amounts for December 31, 2001) Assets20022001 Current assets: Petty cash and change funds$1,5001,500 Cash with fiscal agents508877 Accounts receivable6,52214,786 Accrued interest receivable50,68160,659 Due from other funds36,8757,112 Prepaid expenses01,006 Total current assets96,08685,940 Property and equipment, net542,550673,465 Total assets$638,636759,405 Liabilities and Retained Earnings Current liabilities: Accounts payable20,19925,339 Salaries payable32,30318,951 Due to other governments2,4032,028 Compensated absences payable90,66391,268 Total current liabilities145,568137,586 Long-term liabilities: Obligation under capital lease19,00031,000 Total liabilities164,568168,586 Fund equity: Contributed capital396,561521,257 Retained earnings: Unreserved--undesignated77,50769,562 Total retained earnings77,50769,562 Total liabilities and retained earnings$638,636759,405 Page 91 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Revenues, Expenses and Changes in Retained Earnings Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Operating revenues: Sales - concessions$23,39121,558 Memberships26,40527,095 Admissions71,00161,108 Building rental231,773233,872 Rental of equipment60,35655,876 Green fees152,911160,314 Other fees Programs21,28022,611 Association fees461,746453,969 Miscellaneous2,5971,528 Total operating revenues1,051,4601,037,931 Operating expenses: Cost of sales and services10,94712,642 Personal services676,884647,485 Contractual services359,176379,011 Commodities173,097177,275 Central services225,972220,764 Depreciation137,018155,454 Total operating expenses1,583,0941,592,631 Operating loss(531,634)(554,700) Nonoperating revenues (expenses): Investment income395,875352,256 Miscellaneous revenue14,3610 Interest on capital lease(1,524)(2,097) Loss on disposal of capital assets(48,172)(20,850) Total nonoperating revenues 360,540329,309 Net loss before operating transfers(171,094)(225,391) Operating transfer in: General fund046,000 Revolving fund54,34356,300 Total operating transfers54,343102,300 Net loss (116,751)(123,091) Add depreciation on contributed assets124,696132,935 Increase in retained earnings7,9459,844 Retained earnings--January 169,56259,718 Retained earnings--December 31$77,50769,562 Page 92 CITY OF EDINA, MINNESOTA Edinborough Park/Centennial Lake Fund Statement of Cash Flows Year ended December 31, 2002 (with comparative amounts for year ended December 31, 2001) 20022001 Cash flows from operating activities: Operating loss$(531,634)(554,700) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense137,018155,454 Changes in assets and liabilities: (Increase) decrease in accounts receivable8,264(14,412) (Increase) decrease in due from other funds(29,763)15,320 (Increase) decrease in prepaid expense1,006(1,006) (Increase) decrease in accounts payable(5,140)(1,135) Increase in salaries payable13,3521,127 (Increase) decrease in due to other government375(1,931) Increase (decrease) in compensated absences payable(605)13,169 Miscellaneous revenue14,3610 Total adjustments138,868166,586 Net cash used in operating activities(392,766)(388,114) Cash flows from noncapital financing activities: Operating transfer in - General Fund046,000 Operating transfer in - Revolving Fund54,34356,300 Net cash provided by noncapital financing activities54,343102,300 Cash flow from capital financing activities: Net acquisition of capital assets(6,103)(35,093) Loss on disposal of capital assets(48,172)(20,850) Principal paid on capital lease(12,000)(11,000) Interest paid on capital lease(1,524)(2,097) Net cash used in capital financing activities(67,799)(69,040) Cash flows from investing activities: Decrease in interest receivable9,9782,655 Investment income395,875352,256 Net cash provided by investing activities405,853354,911 Net increase (decrease) in cash and cash equivalents(369)57 Cash and cash equivalents, beginning of year2,3772,320 Cash and cash equivalents, end of year $2,0082,377 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. Public Safety Training Facility Fund: This fund is used to account for various deposits made by the members of the Joint Powers Organization which includes Bloomington, Eden Prairie, and the Metropolitan Airports Commission and payments made to various organizations for constructing and operating a Public Safety Training Facility. Page 94 CITY OF EDINA, MINNESOTA Trust and Agency Funds Combining Balance Sheet Year ended December 31, 2002 (with comparative totals for December 31, 2001) Expendable Trust Agency DeferredPolice Public Safety Totals CompensationSeizureTraining Facility 20022001 Assets: Cash$0248,7002,700251,400143,888 Investments004,990,5334,990,533119,159 Cash and investments with plan administrators3,687,756003,687,7562,510,513 Accrued interest receivable004084080 Due from other governments00006,420 Total assets $3,687,756248,7004,993,641 8,930,0972,779,980 Liabilities: Accounts payable $0095,35295,3527,981 Due to other funds000013,478 Due to other governments0248,7004,898,2895,146,989248,008 Total liabilities 0248,7004,993,6415,242,341269,467 Fund equity: Reserved for deferred compensation plan participants3,687,756003,687,7562,510,513 Total liabilities and fund balances$3,687,756248,7004,993,6418,930,0972,779,980 Page 95 CITY OF EDINA, MINNESOTA Deferred Compensation Expendable Trust Fund Balance Sheet Year ended December 31, 2002 (with comparative totals for December 31, 2001) 20022001 Assets: Cash and cash equivalents $3,687,7563,980,984 Liabilities and fund balances: Fund balance: Reserved for deferred compensation plan participants $3,687,7563,980,984 Page 96 CITY OF EDINA, MINNESOTA Agency Fund Statement of Revenues, Expenditures and Changes in Fund Balances Year ended December 31, 2002 (with comparative totals for December 31, 2001) 20022001 Revenues: Net depreciation in fair value of investments$(513,243)(250,750) Employee contributions 372,015316,813 Total revenues(141,228)66,063 Expenditures: Distributions to plan participants145,61378,826 Administrative expense6,3876,031 Total expenditures152,00084,857 Excess of revenues over expenditures(293,228)(18,794) Fund balance - January 1 3,980,9843,999,778 Fund balance - December 31$3,687,7563,980,984 Page 97 CITY OF EDINA, MINNESOTA Agency Funds Statement of Changes in Assets and Liabilities Year ended December 31, 2002 BalanceBalance 1/1/02AdditionsDeductions12/31/02 Police Seizure Fund Assets: Cash$209,19839,5020248,700 Liabilities: Due to other funds41,678041,6780 Due to other governments167,52081,1800248,700 $209,19881,18041,678248,700 Public Safety Training Facility Fund Assets: Cash 02,7000 2,700 Investments 04,990,5330 4,990,533 Accrued interest receivable 04080 408 Total assets 04,993,64104,993,641 Liabilities: Accounts payable 095,3520 95,352 Due to other governments 04,898,2890 4,898,289 Total liabilities 04,993,64104,993,641 Totals--All Agency Funds Assets: Cash$209,19842,2020251,400 Investments04,990,53304,990,533 Accrued interest receivable04080408 Total assets$209,1985,033,14305,242,341 Liabilities: Accounts payable $095,352095,352 Due to other funds41,678041,6780 Due to other governments167,5204,979,46905,146,989 Total liabilities209,1985,074,82141,6785,242,341 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, 2002 (with comparative amounts for December 31, 2001) 20022001 General fixed assets: Land and land improvements$41,055,28739,321,470 Buildings19,008,69820,697,983 Furniture and fixtures588,433913,716 Vehicles and equipment9,804,0099,881,250 Parks19,888,65619,892,698 Construction-in-progress17,699,9015,328,382 Total general fixed assets108,044,98496,035,499 Investment in joint venture979,6580 Total general fixed asset account group$109,024,64296,035,499 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. Page 101 CITY OF EDINA, MINNESOTA General Long-term Debt Account Group Schedule of General Long-term Debt December 31, 2002 (with comparative amounts for December 31, 2001) 20022001 Amount available and to be provided for the retirement of long-term debt: General Obligation Bonds: Amount to be provided by tax increment financing$40,855,00047,590,000 Amount to be provided by property taxes19,655,0027,613,913 Compensated absences: Amount to be provided by revenue sources2,627,6692,354,817 Total available and to be provided$63,137,67157,558,730 General long-term debt payable: Accrued compensated absences2,627,6692,354,817 Obligation under capital lease payable295,002363,913 Revenue bonds payable12,410,0000 General obligation bonds payable47,805,00054,840,000 Total general long-term debt payable$63,137,67157,558,730 Supplementary Schedules Page 102 CITY OF EDINA, MINNESOTA Combined Schedule of Bonded Indebtedness December 31, 2002 Final InterestIssuematurity ratedatedate Bonded indebtedness: Tax Increment Bonds: Tax Increment Refunding Bonds, Series 1993A4.25 - 5.1004/13/9302/01/06 Tax Increment Refunding Taxable Bonds, Series 1996A5.85 - 6.2503/01/9602/01/09 Tax Increment Bonds, Series 1997B4.50 - 5.5004/01/9702/01/13 Tax Increment Bonds, Series 2000A4.30 - 4.8009/06/0002/01/11 Taxable Tax Increment Bonds, Series 2000B6.4509/06/0002/01/03 Tax Increment Refunding Bonds, Series 2000C4.50 - 4.6511/06/0002/01/09 Tax Increment Bonds, Series 2002B3.0008/05/0202/01/12 General Obligation Bonds: General Obligation Park & Rec Bonds, Series 1996B4.25 - 5.7508/01/9602/01/17 Public Project Revenue Bonds: Public Project Revenue, Series 20024.25 - 5.7501/01/0202/01/21 Revenue Bonds: Recreation Bonds, Series 1992A4.00 - 6.0511/01/9201/01/13 Recreation Refunding Bonds, Series 1992C4.40 - 6.0011/01/9201/01/09 Utility Revenue Bonds,1999A 3.20 - 4.2005/03/9902/01/09 Recreational Facility Bonds, 1999B 3.70 - 4.4505/03/9901/01/13 Recreational Facility Bonds, 2001A 2.25 - 4.6511/01/0101/01/17 Total bonded indebtedness Page 103 Exhibit 1 2002 PercentIndebtedness paid by taxAuthorizedDue in 2003 leviesand issuedRedeemedOutstandingPrincipalInterest None19,580,00010,600,0008,980,0002,455,000394,150 None11,250,0002,475,0008,775,000800,000514,363 None5,090,000550,0004,540,000200,000233,518 None2,620,000210,0002,410,000220,000105,418 None3,565,0003,565,000000 None15,820,0001,070,00014,750,0001,325,000641,880 None1,400,00001,400,00000 59,325,00018,470,00040,855,0005,000,0001,889,329 None 8,090,0001,140,0006,950,000325,000370,388 8,090,0001,140,0006,950,000325,000370,388 None12,410,000012,410,000375,00015,000 12,410,000012,410,000375,00015,000 None3,975,0003,975,000000 None4,650,0004,650,000000 None3,600,000970,0002,630,000335,00098,013 None3,270,000 0 3,270,000220,000132,420 None4,620,000 0 4,620,000525,000143,059 20,115,0009,595,00010,520,0001,080,000373,492 $99,940,00029,205,00070,735,0006,780,0002,648,209 Page 104 Exhibit 2 CITY OF EDINA, MINNESOTA Schedule of Changes in Bonded Indebtedness Year ended December 31, 2002 BalanceBalance January 1IssuedRedeemedDecember 31 Tax Increment Bonds$47,590,0001,400,0008,135,00040,855,000 General Obligation Bonds7,250,0000300,0006,950,000 Public Project Revenue Bonds012,410,000012,410,000 Revenue Bonds17,625,00007,105,00010,520,000 $72,465,00013,810,00015,540,00070,735,000 Page 105 Exhibit 3 CITY OF EDINA, MINNESOTA Schedule of Bonds Payable December 31, 2002 IssueInterestMaturityPrincipal dateratedateamount Tax Increment Bonds: $19,580,000 Tax Increment Refunding Bond, Series 1993A5/1/93 $2,455,000.5.002/1/032,455,000 $2,230,000.5.102/1/042,230,000 $2,555,000.5.102/1/052,555,000 $1,740,000.5.102/1/061,740,000 8,980,000 $11,250,000 Tax Increment Taxable Refunding Bond, Series 1996A3/1/96 $800,0005.852/1/03800,000 $900,0006.002/1/04900,000 $900,0006.102/1/05900,000 $1,000,0006.102/1/061,000,000 $1,475,0006.152/1/071,475,000 $1,800,0006.202/1/081,800,000 $1,900,0006.252/1/091,900,000 8,775,000 $5,090,000 Tax Increment Temporary Bond, Series 1997B4/7/97 $200,0004.852/1/03200,000 $225,0004.952/1/04225,000 $250,0005.052/1/05250,000 $405,0005.102/1/06405,000 $425,0005.152/1/07425,000 $445,0005.202/1/08445,000 $465,0005.302/1/09465,000 $490,0005.302/1/10490,000 $515,0005.352/1/11515,000 $545,0005.402/1/12545,000 $575,0005.502/1/13575,000 4,540,000 $2,620,000 Tax Increment Bond, Series 2000A9/6/00 $220,0004.352/1/03220,000 $230,0004.402/1/04230,000 $240,0004.452/1/05240,000 $255,0004.502/1/06255,000 $265,0004.552/1/07265,000 $280,0004.602/1/08280,000 $290,0004.652/1/09290,000 $305,0004.702/1/10305,000 $325,0004.802/1/11325,000 2,410,000 (Continued) Page 106 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued IssueInterestMaturityPrincipal dateratedateamount $1,400,000 Tax Increment Bond, Series 2002B8/5/023.00 $0 2/1/030 $0 2/1/040 $0 2/1/050 $0 2/1/060 $0 2/1/070 $0 2/1/080 $0 2/1/090 $0 2/1/100 $0 2/1/110 $1,400,0002/1/121,400,000 1,400,000 $15,820,000 Tax Increment Refunding Bond, Series 2000C11/6/004.50 - 4.65 $1,325,0002/1/031,325,000 $1,460,0002/1/041,460,000 $1,505,0002/1/051,505,000 $1,655,0002/1/061,655,000 $2,490,0002/1/072,490,000 $3,060,0002/1/083,060,000 $3,255,0002/1/093,255,000 14,750,000 Total tax increment bonds 40,855,000 General Obligation Bonds: $8,090,000 General Obligation Park & Rec Bond, Series 1996B8/1/96 $325,0004.802/1/03325,000 $325,0004.902/1/04325,000 $350,0005.002/1/05350,000 $375,0005.102/1/06375,000 $375,0005.202/1/07375,000 $400,0005.302/1/08400,000 $425,0005.402/1/09 425,000 $450,0005.452/1/10450,000 $475,000 5.502/1/11 475,000 $500,0005.552/1/12500,000 $525,0005.602/1/13525,000 $550,0005.652/1/14550,000 $600,0005.702/1/15600,000 $625,0005.752/1/16625,000 $650,0005.752/1/17650,000 Total General Obligation Bonds 6,950,000 (Continued) Page 107 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued IssueInterestMaturityPrincipal dateratedateamount $12,410,000 Public Project Revenue Bonds, Series 2002A1/1/02 $375,000 4.25 - 5.752/1/03375,000 $440,000 2/1/04440,000 $460,000 2/1/05460,000 $480,000 2/1/06480,000 $505,000 2/1/07505,000 $525,000 2/1/08525,000 $550,000 2/1/09550,000 $575,000 2/1/10575,000 $600,000 2/1/11600,000 $630,000 2/1/12630,000 $660,000 2/1/13660,000 $690,000 2/1/14690,000 $725,000 2/1/15725,000 $760,000 2/1/16760,000 $800,000 2/1/17800,000 $840,000 2/1/18840,000 $885,000 2/1/19885,000 $930,000 2/1/20930,000 $980,000 2/1/21980,000 Total Public Project Bonds 12,410,000 Revenue Bonds: $3,600,000 Utility Revenue Revenue Bond, Series 1999A5/3/99 $335,000 3.702/1/03335,000 $345,000 3.802/1/04345,000 $360,000 3.852/1/05360,000 $375,000 4.002/1/06375,000 $390,000 4.002/1/07390,000 $405,000 4.102/1/08405,000 $420,000 4.202/1/09420,000 2,630,000 $3,270,000 Recreational Facility Revenue Bonds, Series 1999B5/3/99 $220,000 3.701/1/03220,000 $265,000 3.801/1/04255,000 $270,000 3.901/1/05265,000 $290,000 4.001/1/06270,000 $295,000 4.101/1/07290,000 $310,000 4.201/1/08295,000 $320,000 4.301/1/09310,000 $320,000 4.351/1/10320,000 $335,000 4.351/1/11335,000 $345,000 4.401/1/12345,000 $365,000 4.451/1/13365,000 3,270,000 (Continued) Page 108 Exhibit 3, Cont. CITY OF EDINA, MINNESOTA Schedule of Bonds Payable, Continued IssueInterestMaturityPrincipal dateratedateamount $15,820,000 Recreational Facility Revenue Bonds, Series 2001A11/1/01 $525,000 2.251/1/03525,000 $565,000 2.601/1/04565,000 $585,000 2.851/1/05585,000 $610,000 3.101/1/06610,000 $615,000 3.351/1/07615,000 $550,000 3.551/1/08550,000 $550,000 3.701/1/09550,000 $65,000 3.801/1/1065,000 $70,000 3.901/1/1170,000 $75,000 4.051/1/1275,000 $75,000 4.151/1/1375,000 $80,000 4.301/1/1480,000 $80,000 4.451/1/1580,000 $85,000 4.551/1/1685,000 $90,000 4.651/1/1790,000 4,620,000 Total revenue bonds 10,520,000 Total bonds payable 70,735,000 Ex h i b i t 4 CI T Y O F E D I N A , M I N N E S O T A Sc h e d u l e o f D e b t S e r v i c e R e q u i r e m e n t s De c e m b e r 3 1 , 2 0 0 2 Ye a r T a x I n c r e m e n t B o n d s G e n e r a l O b l i g a t i o n B o n d s P u b l i c P r o j e c t R e v e n u e B o n d s R e v e n u e B o n d s En d e d P r i n c i p a l I n t e r e s t P r i n c i p a l I n t e r e s t P r i n c i p a l I n t e r e s t P r i n c i p a l I n t e r e s t 20 0 3 5 , 0 0 0 , 0 0 0 1 , 8 8 9 , 3 2 8 3 2 5 , 0 0 0 3 7 0 , 3 8 8 3 7 5 , 0 0 0 1 5 , 0 0 0 1 , 0 8 0 , 0 0 0 3 7 3 , 4 9 2 20 0 4 5 , 0 4 5 , 0 0 0 1 , 6 3 7 , 7 6 1 3 2 5 , 0 0 0 3 5 4 , 6 2 5 4 4 0 , 0 0 0 1 7 , 6 0 0 1 , 1 6 5 , 0 0 0 3 3 8 , 5 7 3 20 0 5 5 , 4 5 0 , 0 0 0 1 , 3 7 2 , 3 0 0 3 5 0 , 0 0 0 3 3 7 , 9 1 3 4 6 0 , 0 0 0 2 0 , 7 0 0 1 , 2 1 0 , 0 0 0 2 9 9 , 3 9 3 20 0 6 5 , 0 5 5 , 0 0 0 1 , 1 0 6 , 0 1 0 3 7 5 , 0 0 0 3 1 9 , 6 0 0 4 8 0 , 0 0 0 2 1 , 6 0 0 1 , 2 5 5 , 0 0 0 2 5 6 , 6 0 5 20 0 7 4 , 6 5 5 , 0 0 0 8 5 9 , 4 8 3 3 7 5 , 0 0 0 3 0 0 , 2 8 8 5 0 5 , 0 0 0 2 2 , 7 2 5 1 , 2 9 5 , 0 0 0 2 1 0 , 2 0 4 20 0 8 5 , 5 8 5 , 0 0 0 5 9 6 , 9 4 0 4 0 0 , 0 0 0 2 7 9 , 9 3 8 5 2 5 , 0 0 0 2 3 , 6 2 5 1 , 2 5 0 , 0 0 0 1 6 1 , 8 9 8 20 0 9 5 , 9 1 0 , 0 0 0 2 9 8 , 6 3 1 4 2 5 , 0 0 0 2 5 7 , 8 6 3 5 5 0 , 0 0 0 2 4 , 7 5 0 1 , 2 8 0 , 0 0 0 1 1 1 , 9 7 8 20 1 0 7 9 5 , 0 0 0 1 2 4 , 3 6 0 4 5 0 , 0 0 0 2 3 4 , 1 2 5 5 7 5 , 0 0 0 2 5 , 8 7 5 3 8 5 , 0 0 0 7 8 , 1 2 3 20 1 1 8 4 0 , 0 0 0 8 2 , 6 3 1 4 7 5 , 0 0 0 2 0 8 , 8 0 0 6 0 0 , 0 0 0 2 7 , 6 0 0 4 0 5 , 0 0 0 6 1 , 2 7 7 20 1 2 1 , 9 4 5 , 0 0 0 8 8 , 3 4 0 5 0 0 , 0 0 0 1 8 1 , 8 6 3 6 3 0 , 0 0 0 3 0 , 2 4 0 4 2 0 , 0 0 0 4 3 , 5 1 6 20 1 3 5 7 5 , 0 0 0 1 5 , 8 1 3 5 2 5 , 0 0 0 1 5 3 , 2 8 8 6 6 0 , 0 0 0 3 2 , 3 4 0 4 4 0 , 0 0 0 2 4 , 7 3 0 20 1 4 0 0 5 5 0 , 0 0 0 1 2 3 , 0 5 0 6 9 0 , 0 0 0 3 4 , 5 0 0 8 0 , 0 0 0 1 3 , 3 3 3 20 1 5 0 0 6 0 0 , 0 0 0 9 0 , 4 1 3 7 2 5 , 0 0 0 3 6 , 2 5 0 8 0 , 0 0 0 9 , 8 3 3 20 1 6 0 0 6 2 5 , 0 0 0 5 5 , 3 4 4 7 6 0 , 0 0 0 3 8 , 9 5 0 8 5 , 0 0 0 6 , 1 1 9 20 1 7 0 0 6 5 0 , 0 0 0 1 8 , 6 8 8 8 0 0 , 0 0 0 4 1 , 0 0 0 9 0 , 0 0 0 2 , 0 9 3 20 1 8 0 0 0 0 8 4 0 , 0 0 0 4 3 , 0 5 0 0 0 20 1 9 0 0 0 0 8 8 5 , 0 0 0 4 5 , 3 5 6 0 0 20 2 0 0 0 0 0 9 3 0 , 0 0 0 4 8 , 8 2 5 0 0 20 2 1 0 0 0 0 9 8 0 , 0 0 0 5 1 , 4 5 0 0 0 20 2 2 0 0 0 0 0 0 0 0 $ 4 0 , 8 5 5 , 0 0 0 8 , 0 7 1 , 5 9 7 6 , 9 5 0 , 0 0 0 3 , 2 8 6 , 1 8 1 1 2 , 4 1 0 , 0 0 0 6 0 1 , 4 3 6 1 0 , 5 2 0 , 0 0 0 1 , 9 9 1 , 1 6 5 Page 110 Exhibit 5 CITY OF EDINA, MINNESOTA Assessed Valuation, Tax Levies and Mill Rates (shown by year of tax collectibility) 19992000200120022003 Assessed valuation/tax capacity$85,963,83690,806,94799,650,35872,583,69477,665,879 Increment valuation(6,230,928)(7,087,107)(8,559,204)(6,513,676)(6,909,331) Contribution to fiscal disparities pool(7,511,473)(9,014,784)(10,127,351)(6,893,865)(7,587,409) Received from fiscal disparities pool2,199,2242,460,9132,752,1491,830,3481,975,365 Taxable valuation$74,420,65977,165,96983,715,95261,006,50165,144,504 Tax levies: General Fund$13,284,96213,650,15814,438,34615,990,25616,171,875 Public Project Revenue0001,000,0001,026,437 Certificates of Indebtedness 0000586,163 Total tax levies 13,284,96213,650,15814,438,34616,990,25617,784,475 Tax Capacity Rate: General Fund $17.81017.66917.23327.80627.139 Ta b l e 1 CI T Y O F E D I N A , M I N N E S O T A Ge n e r a l G o v e r n m e n t a l E x p e n d i t u r e s b y F u n c t i o n ( a ) La s t T e n F i s c a l Y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) Un a l l o c a t e d Fi s c a l G e n e r a l P u b l i c P u b l i c g e n e r a l C a p i t a l D e b t ye a r g o v e r n m e n t s a f e t y w o r k s P a r k s e x p e n d i t u r e s O t h e r o u t l a y s e r v i c e T o t a l 19 9 3 1 , 9 9 9 , 8 6 3 6 , 5 4 4 , 2 2 0 2 , 9 9 0 , 2 4 7 1 , 7 4 4 , 8 0 7 1 1 7 , 4 5 1 1 , 8 7 7 , 1 1 0 4 9 6 , 3 3 4 6 , 6 4 7 , 3 6 0 2 2 , 4 1 7 , 3 9 2 19 9 4 2 , 0 9 7 , 5 2 1 6 , 7 7 4 , 5 9 2 2 , 9 8 5 , 8 9 3 1 , 7 2 5 , 6 4 1 1 8 0 , 5 8 9 3 , 2 7 3 , 8 4 8 7 0 0 , 4 5 1 7 , 3 3 3 , 4 6 6 2 5 , 0 7 2 , 0 0 1 19 9 5 2 , 0 6 9 , 5 2 7 7 , 2 5 1 , 1 2 9 3 , 1 6 0 , 8 3 1 1 , 8 5 0 , 6 1 0 3 0 9 , 1 5 2 5 , 3 8 9 , 2 0 5 8 0 4 , 5 8 7 7 , 8 7 3 , 8 1 5 2 8 , 7 0 8 , 8 5 6 19 9 6 2, 2 0 1 , 3 1 2 7 , 4 4 0 , 6 0 1 3 , 2 9 0 , 7 4 2 1 , 9 1 9 , 7 5 9 2 5 1 , 2 1 5 5 , 8 4 7 , 7 0 6 9 7 0 , 8 8 2 6 , 2 8 1 , 4 7 5 2 8 , 2 0 3 , 6 9 2 19 9 7 2 , 2 4 7 , 0 4 0 7 , 7 1 7 , 3 3 4 3 , 5 3 7 , 4 4 1 2 , 0 3 1 , 2 6 1 3 4 0 , 5 1 0 1 , 5 9 7 , 7 4 7 1 6 , 7 9 6 , 8 2 4 6 , 6 2 2 , 9 4 8 40 , 8 9 1 , 1 0 5 19 9 8 2 , 5 2 8 , 5 6 0 8 , 1 3 1 , 2 9 3 4 , 0 8 4 , 6 5 1 1 , 9 6 0 , 1 1 1 3 3 3 , 7 9 3 1 , 1 0 4 , 7 3 8 7 , 5 3 0 , 0 5 1 6 , 3 2 4 , 5 3 3 31 , 9 9 7 , 7 3 0 19 9 9 2 , 5 2 7 , 5 4 7 8 , 5 1 6 , 6 7 3 3 , 7 4 4 , 1 2 4 2 , 2 4 0 , 7 3 0 3 6 6 , 3 3 2 1 , 0 0 5 , 7 8 1 5 , 5 9 9 , 6 3 6 6 , 5 3 7 , 2 6 6 30 , 5 3 8 , 0 8 9 20 0 0 2 , 6 3 5 , 3 5 7 8 , 8 4 6 , 3 6 0 3 , 6 7 2 , 0 5 7 2 , 1 5 0 , 5 8 8 3 4 6 , 0 9 9 1 , 5 7 6 , 9 6 8 8 , 3 5 2 , 4 9 4 6 , 6 5 8 , 6 0 1 34 , 2 3 8 , 5 2 4 20 0 1 2 , 6 3 3 , 2 6 0 9 , 4 0 9 , 2 9 1 4 , 3 1 3 , 0 6 5 2 , 3 7 5 , 5 6 5 5 0 6 , 4 9 5 2 , 2 1 3 , 2 4 7 1 1 , 1 9 3 , 1 5 5 6 , 8 8 8 , 7 1 9 39 , 5 3 2 , 7 9 7 20 0 2 2 , 9 8 4 , 0 1 2 9 , 8 9 3 , 4 2 8 4 , 1 6 1 , 3 7 3 2 , 6 0 2 , 2 6 6 4 4 5 , 9 2 9 1 , 9 4 2 , 4 9 0 1 1 , 0 5 9 , 7 5 7 8 , 9 7 9 , 4 8 0 42 , 0 6 8 , 7 3 5 No t e : ( a ) I n c l u d e s G e n e r a l , S p e c i a l R e v e n u e , D e b t S e r v i c e a n d C a p i t a l P r o j e c t F u n d s . Ta b l e 2 CIT Y O F E D I N A , M I N N E S O T A Ge n e r a l G o v e r n m e n t a l R e v e n u e s b y S o u r c e ( a ) La s t T e n F i s c a l Y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) In t e r e s t on f u n d s Li c e n s e s C h a r g e s h e l d w i t h S a l e s a n d Fi s c a l S p e c i a l F r a n c h i s e a n d I n t e r - f o r F i n e s a n d I n t e r e s t o n f i s c a l r e n t a l o f ye a r T a x e s a s s e s s m e n t s F e e p e r m i t s g o v e r n m e n t a l s e r v i c e s f o r f e i t u r e s i n v e s t m e n t s a g e n t p r o p e r t y M i s c e l l a n e o u s T o t a l s 19 9 3 1 7 , 5 0 5 , 2 7 2 9 9 1 , 3 9 4 2 6 0 , 0 3 9 1 , 0 3 7 , 7 8 3 1 , 7 4 9 , 6 3 1 1 , 1 6 7 , 4 4 6 3 5 0 , 5 8 2 4 3 1 , 9 7 6 1 , 4 4 3 , 5 3 0 1 0 0 , 7 6 5 2 0 5 , 4 3 2 2 5 , 2 4 3 , 8 5 0 19 9 4 1 7 , 6 3 7 , 4 5 8 1 , 0 8 7 , 8 3 1 2 0 6 , 2 6 1 9 4 7 , 1 2 2 1 , 8 0 7 , 8 2 6 1 , 2 5 1 , 6 0 3 3 2 2 , 9 9 2 5 9 1 , 9 8 5 1 , 7 2 7 , 1 0 3 1 7 4 , 9 7 0 1 , 0 1 6 , 6 0 5 2 6 , 7 7 1 , 7 5 6 19 9 5 1 5 , 5 3 4 , 9 0 2 8 5 8 , 8 9 7 2 0 9 , 5 1 9 1 , 0 7 0 , 3 5 2 5 , 6 9 3 , 8 0 2 1 , 5 1 0 , 4 7 0 5 4 5 , 9 9 6 4 1 1 , 3 4 5 1 , 7 4 2 , 6 2 1 6 8 , 8 7 1 5 9 1 , 3 1 8 2 8 , 2 3 8 , 0 9 3 19 9 6 16 , 0 8 9 , 7 0 5 9 6 9 , 4 6 8 2 2 4 , 4 8 9 1 , 3 8 2 , 4 2 7 3 , 9 2 8 , 3 5 2 1 , 6 2 1 , 6 3 5 4 5 6 , 5 8 9 9 5 0 , 1 2 9 1 , 1 7 5 , 9 7 6 1 0 8 , 1 1 1 2 9 2 , 0 1 8 2 7 , 1 9 8 , 8 9 9 19 9 7 1 7 , 6 5 3 , 6 2 1 9 5 5 , 2 0 6 3 3 1 , 5 2 7 1 , 3 8 8 , 9 6 8 1 , 9 9 6 , 7 4 4 2 , 8 4 2 , 9 2 3 5 6 2 , 9 1 0 1 , 1 9 9 , 2 5 1 1 , 0 3 8 , 8 5 0 1 5 2 , 3 9 8 1 9 4 , 6 7 9 28 , 3 1 7 , 0 7 7 19 9 8 2 0 , 5 6 7 , 8 6 7 8 4 4 , 0 7 0 2 9 6 , 4 2 7 2 , 0 9 1 , 3 6 5 2 , 5 5 1 , 4 5 2 1 , 8 3 3 , 1 4 8 6 9 1 , 3 5 5 1 , 3 5 3 , 5 2 1 4 3 , 3 3 1 8 6 , 6 3 9 6 0 4 , 0 9 9 30 , 9 6 3 , 2 7 4 19 9 9 2 1 , 9 9 5 , 2 3 0 9 9 0 , 3 3 0 2 9 7 , 8 6 6 2 , 1 3 5 , 5 4 1 3 , 1 8 5 , 0 0 8 2 , 0 7 0 , 4 7 6 7 9 4 , 7 1 0 4 1 5 , 1 1 4 0 2 8 4 , 0 8 5 4 7 8 , 7 8 8 32 , 6 4 7 , 1 4 8 20 0 0 2 2 , 9 0 4 , 5 1 2 1 , 1 5 9 , 8 7 6 3 3 6 , 6 7 8 1 , 8 3 5 , 8 2 8 1 , 8 8 0 , 6 8 0 2 , 9 0 2 , 6 6 6 9 6 7 , 4 2 1 2 , 2 8 7 , 3 4 9 8 8 , 7 8 8 1 , 1 5 6 , 5 2 6 9 6 , 9 3 2 35 , 6 1 7 , 2 5 6 20 0 1 2 4 , 4 0 9 , 7 8 5 1 , 0 8 6 , 0 9 3 4 7 3 , 7 0 2 2 , 2 3 9 , 6 1 1 5 , 0 8 5 , 9 8 1 1 , 9 6 2 , 1 7 2 9 7 6 , 9 5 2 1 , 2 7 4 , 2 9 4 8 3 , 4 0 7 4 , 2 6 2 , 9 8 4 1 8 4 , 4 6 6 42 , 0 3 9 , 4 4 7 20 0 2 2 4 , 7 3 5 , 3 3 6 9 9 8 , 9 0 8 4 1 8 , 1 5 3 1 , 9 3 9 , 2 0 7 2 , 2 5 4 , 9 6 8 2 , 0 9 6 , 8 0 6 9 1 0 , 4 0 7 1 , 1 7 8 , 2 1 1 0 1 , 7 8 2 , 0 6 3 1 8 0 , 0 8 1 36 , 4 9 4 , 1 4 0 No t e : ( a ) I n c l u d e s G e n e r a l , S p e c i a l R e v e n u e , D e b t S e r v i c e a n d C a p i t a l P r o j e c t F u n d s . Ta b l e 3 CI T Y O F E D I N A , M I N N E S O T A Pr o p e r t y T a x L e v i e s a n d C o l l e c t i o n s La s t T e n F i s c a l Y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) Pe r c e n t P e r c e n t o f Pe r c e n t A d j u s t m e n t s / o f t o t a l t a x o u t s t a n d i n g of t o t a l D e l i n q u e n t c o l l e c t i o n s O u t s t a n d i n g d e l i n q u e n t Fi s c a l T o t a l t a x C u r r e n t t a x t a x l e v y t a x T o t a l t a x t o t o t a l d e l i n q u e n t t a x e s t o ye a r l e v y c o l l e c t i o n s c o l l e c t e d c o l l e c t i o n s c o l l e c t i o n s t a x l e v y t a x e s t o t a l t a x l e v y 19 9 3 1 0 , 4 8 5 , 1 1 5 9 , 9 8 9 , 6 1 2 9 5 . 2 7 % ( 2 , 9 7 7 ) 9 , 9 8 6 , 6 3 5 9 5 . 2 5 % 2 0 4 , 1 5 3 1 . 9 5 % 19 9 4 1 0 , 9 2 7 , 5 5 1 1 0 , 6 9 1 , 5 7 2 9 7 . 8 4 % 5 , 8 1 9 1 0 , 6 9 7 , 3 9 1 9 7 . 8 9 % 1 5 4 , 4 8 2 1 . 4 1 % 19 9 5 1 1 , 3 9 0 , 8 9 8 1 1 , 1 9 8 , 6 4 7 9 8 . 3 1 % ( 6 7 , 0 4 7 ) 1 1 , 1 3 1 , 6 0 0 9 7 . 7 2 % 8 8 , 3 9 9 0 . 7 8 % 19 9 6 1 2 , 1 7 8 , 4 4 0 1 2 , 0 2 6 , 1 7 7 98 . 7 5 % (2 6 2 , 2 7 9 ) 11 , 7 6 3 , 8 9 8 9 6 . 6 0 % 36 , 1 9 8 0. 3 0 % 19 9 7 1 2 , 5 3 1 , 2 4 4 1 2 , 3 8 1 , 7 2 9 98 . 8 1 % (2 4 4 , 9 1 3 ) 12 , 1 3 6 , 8 1 6 9 6 . 8 5 % 39 , 1 0 7 0. 3 1 % 19 9 8 1 3 , 0 9 9 , 1 4 0 1 3 , 0 0 3 , 8 8 2 99 . 2 7 % 48 , 9 8 5 1 3 , 0 5 2 , 8 6 7 99 . 6 5 % 54 , 2 2 6 0. 4 1 % 19 9 9 1 3 , 2 8 4 , 9 6 2 1 3 , 1 4 7 , 2 8 8 98 . 9 6 % 36 , 2 9 3 1 3 , 1 8 3 , 5 8 1 99 . 2 4 % 99 , 2 0 2 0. 7 5 % 20 0 0 1 3 , 6 5 0 , 1 5 8 1 3 , 5 5 4 , 0 4 4 99 . 3 0 % 15 , 3 5 5 1 3 , 5 6 9 , 3 9 9 99 . 4 1 % 11 6 , 3 6 2 0. 8 5 % 20 0 1 1 4 , 4 3 8 , 3 4 6 1 4 , 3 3 1 , 0 7 8 99 . 2 6 % 25 , 9 0 7 1 4 , 3 5 6 , 9 8 5 99 . 4 4 % 12 1 , 5 4 8 0. 8 4 % 20 0 2 1 6 , 9 9 0 , 2 5 6 1 6 , 8 7 4 , 1 9 8 99 . 3 2 % 55 , 5 7 8 1 6 , 9 2 9 , 7 7 6 99 . 6 4 % 13 2 , 4 4 3 0. 7 8 % 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 propertyassessed value/ tax capacity to AssessmentAssessed value/Estimatedtotal estimated yeartax capacitymarket valuemarket value 199381,413,9533,607,576,6002.26% 199482,244,2153,733,888,4002.20% 199584,055,8193,849,796,6002.18% 199685,775,8874,071,654,134 2.11% 199791,586,9904,074,713,634 2.25% 199887,726,8104,267,758,501 2.06% 1999 85,963,8364,535,761,900 1.90% 200090,055,7524,861,730,000 1.85% 200172,133,5945,821,566,500 1.24% 200277,665,8796,913,942,400 1.12% 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 GeneralRevenueSchool yearFundFundsTotalDistrictCountyOtherTotal 199315.092-15.09263.74335.8397.629122.303 199416.032-16.03261.41737.4417.515122.405 199515.577-15.57757.97537.4546.851117.857 199616.331 -16.33162.26837.2707.494123.363 199715.626 -15.62657.21335.5156.659115.013 199816.813 -16.81347.49938.3887.538110.682 199917.810 -17.81050.76640.9948.553118.123 200017.669 -17.66951.67839.6558.426117.428 200117.233 -17.23346.83937.6248.126109.822 200227.806 -27.80618.50450.4097.707104.426 Ta b l e 6 CI T Y O F E D I N A , M I N N E S O T A Sp e c i a l A s s e s s m e n t C o l l e c t i o n s La s t T e n F i s c a l Y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) Pe r c e n t a g e Co l l e c t i o n P e r c e n t a g e C o l l e c t i o n o f t o t a l T o t a l of c u r r e n t o f l e v y o f p r i o r T o t a l c o l l e c t i o n s o u t s t a n d i n g Ye a r T o t a l l e v y y e a r ' s l e v y c o l l e c t e d y e a r ' s l e v y c o l l e c t i o n s t o t o t a l l e v y a s s e s s m e n t s 19 9 3 8 3 4 , 0 9 9 8 2 6 , 1 7 8 9 9 . 0 5 % 1 2 , 8 9 0 8 3 9 , 0 6 8 1 0 0 . 6 0 % 2 2 , 2 5 9 19 9 4 8 0 7 , 3 2 4 8 0 0 , 4 5 6 9 9 . 1 5 % 5 , 6 2 2 8 0 6 , 0 7 8 9 9 . 8 5 % 2 7 , 5 2 3 19 9 5 7 8 6 , 4 8 0 7 7 9 , 5 1 7 9 9 . 1 1 % 7 , 5 0 8 7 8 7 , 0 2 5 1 0 0 . 0 7 % 2 6 , 2 2 3 19 9 6 7 6 8 , 8 0 0 7 6 4 , 9 9 7 99 . 5 1 % 16 , 6 3 6 78 1 , 6 3 3 1 0 1 . 6 7 % 13 , 3 8 9 19 9 7 5 9 0 , 0 4 8 5 7 6 , 5 1 3 97 . 7 1 % 9, 0 3 6 58 5 , 5 4 9 9 9 . 2 4 % 17 , 8 8 9 19 9 8 6 5 4 , 4 4 2 6 3 5 , 4 7 6 97 . 1 0 % 3, 7 9 8 63 9 , 2 7 4 9 7 . 6 8 % 33 , 0 5 7 19 9 9 7 7 3 , 2 5 1 7 5 3 , 2 5 1 97 . 4 1 % 14 , 2 7 3 76 7 , 5 2 4 9 9 . 2 6 % 38 , 7 8 4 20 0 0 9 6 0 , 5 6 2 9 3 0 , 4 8 4 96 . 8 7 % 5, 5 8 6 93 6 , 0 7 0 9 7 . 4 5 % 63 , 2 7 5 20 0 1 1 , 0 0 3 , 8 5 6 9 7 5 , 9 2 1 97 . 2 2 % 51 , 1 7 3 1, 0 2 7 , 0 9 4 1 0 2 . 3 1 % 40 , 0 3 8 20 0 2 9 7 4 , 1 4 1 9 5 0 , 4 1 7 97 . 5 6 % 23 , 7 5 6 97 4 , 1 7 3 1 0 0 . 0 0 % 40 , 0 0 6 Ta b l e 7 CI T Y O F E D I N A , M I N N E S O T A Ra t i o o f N e t G e n e r a l B o n d e d D e b t t o A s s e s s e d Va l u e / T a x C a p a c i t y a n d N e t B o n d e d D e b t P e r C a p i t a La s t T e n F i s c a l Y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) Ra t i o o f Ne t n e t b o n d e d N e t as s e s s e d D e b t d e b t t o b o n d e d va l u e / t a x G r o s s s e r v i c e a s s e s s e d d e b t Fi s c a l c a p a c i t y ( i n b o n d e d m o n i e s N e t b o n d e d v a l u e / t a x p e r ye a r * P o p u l a t i o n t h o u s a n d s ) d e b t ( b ) a v a i l a b l e d e b t c a p a c i t y c a p i t a 19 9 3 4 6 , 9 1 6 6 8 , 2 5 9 1 0 8 , 1 6 5 , 0 0 0 4 5 , 9 9 4 , 0 6 0 6 2 , 1 7 0 , 9 4 0 9 1 . 0 8 % 1 , 3 2 5 19 9 4 4 6 , 9 8 4 7 3 , 0 6 6 1 0 4 , 6 1 5 , 0 0 0 4 4 , 8 1 0 , 0 2 1 5 9 , 8 0 4 , 9 7 9 8 1 . 8 5 % 1 , 2 7 3 19 9 5 4 6 , 8 4 1 7 4 , 7 8 7 1 0 1 , 7 7 5 , 0 0 0 4 3 , 2 6 5 , 9 8 4 5 8 , 5 0 9 , 0 1 6 7 8 . 2 3 % 1 , 2 4 9 19 9 6 4 6 , 8 4 5 8 0 , 0 8 7 9 2 , 6 8 0 , 0 0 0 2 5 , 4 2 9 , 2 1 5 67 , 2 5 0 , 7 8 5 8 3 . 9 7 % 1 , 4 3 6 19 9 7 4 7 , 0 2 9 7 7 , 7 6 2 9 4 , 3 8 5 , 0 0 0 1 7 , 9 2 9 , 5 2 3 76 , 4 5 5 , 4 7 7 9 8 . 3 2 % 1 , 6 2 6 19 9 8 4 7 , 1 1 3 8 5 , 2 5 9 7 0 , 2 6 0 , 0 0 0 5 8 9 , 3 7 1 69 , 6 7 0 , 6 2 9 8 1 . 7 2 % 1 , 4 7 9 19 9 9 4 7 , 2 3 5 7 7 , 1 9 1 7 3 , 0 0 5 , 0 0 0 4 , 3 8 4 , 4 1 9 68 , 6 2 0 , 5 8 1 8 8 . 9 0 % 1 , 4 5 3 20 0 0 4 7 , 4 2 5 ( a ) 8 3 , 7 1 6 8 8 , 1 7 5 , 0 0 0 2 1 , 2 5 1 , 9 4 7 66 , 9 2 3 , 0 5 3 7 9 . 9 4 % 1 , 4 1 1 20 0 1 4 7 , 4 6 5 6 1 , 0 0 7 7 2 , 4 6 5 , 0 0 0 8 , 3 2 1 , 6 4 5 64 , 1 4 3 , 3 5 5 1 0 5 . 1 4 % 1 , 3 5 1 20 0 2 4 7 , 4 6 5 6 5 , 4 8 6 7 0 , 7 3 5 , 0 0 0 3 , 0 7 0 , 7 5 8 67 , 6 6 4 , 2 4 2 1 0 3 . 3 3 % 1 , 4 2 6 *S o u r c e : M e t r o p o l i t a n C o u n c i l e s t i m a t e No t e s : ( a ) O f f i c i a l p o p u l a t i o n p e r 2 0 0 0 c e n s u s . ( b ) I n c l u d e s a l l l o n g - t e r m g e n e r a l o b l i g a t i o n d e b t . Page 118 Table 8 CITY OF EDINA, MINNESOTA Computation of Overlapping Debt December 31, 2002 (Unaudited - see accompanying auditors' report) PercentageAmount applicableapplicable Net debtto City ofto City of JurisdictionoutstandingEdinaEdina City of Edina$46,457,361100.00%$46,457,361 Hennepin County320,455,6277.07%22,656,213 ISD #273 (Edina)26,258,11997.64%25,638,427 ISD #270 (Hopkins)84,660,3678.25%6,984,480 ISD #271 (Bloomington)139,427,8820.01%13,943 ISD #272 (Eden Prairie)93,875,1831.01%948,139 ISD #280 (Richfield)54,569,19417.89%9,762,429 ISD #283 (St. Louis Park)51,267,6010.01%5,127 Metro Council155,050,0005.28%8,186,640 Hennepin Regional RR Authority48,803,8037.59%3,704,209 Hennepin County Regional Parks25,281,21710.08%2,548,347 $126,905,315 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) Ratio of total debt service Totalto total FiscaldebtTotal generalgeneral yearPrincipalInterestserviceexpenditures (a)expenditures 19931,800,0004,847,3606,647,36021,384,89731.08% 19941,185,0006,148,4667,333,46622,035,99133.28% 19952,495,0005,378,8157,873,81523,630,85333.32% 19961,400,0004,881,475 6,281,475 23,128,537 27.16% 19972,120,0004,502,948 6,622,948 24,000,082 27.60% 19982,224,7244,099,809 6,324,533 25,390,000 24.91% 19993,275,0003,262,266 6,537,266 25,131,088 26.01% 20006,050,0003,108,601 9,158,601 25,814,880 35.48% 20013,740,0003,148,719 6,888,719 28,382,482 24.27% 20025,885,0003,094,480 8,979,480 30,675,141 29.27% Notes: (a) Includes General, Special Revenue, and Debt Service Funds. Ta b l e 1 0 CI T Y O F E D I N A , M I N N E S O T A Re v e n u e B o n d C o v e r a g e La s t T e n F i s c a l Y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) Ne t re v e n u e Di r e c t * a v a i l a b l e Gr o s s o p e r a t i n g f o r d e b t D e b t s e r v i c e r e q u i r e m e n t s Fi s c a l y e a r r e v e n u e e x p e n s e s s e r v i c e P r i n c i p a l I n t e r e s t T o t a l C o v e r a g e Ut i l i t y B o n d 19 9 3 7 , 1 2 2 , 6 3 6 6 , 2 3 8 , 1 4 2 8 8 4 , 4 9 4 3 0 0 , 0 0 0 2 1 4 , 7 9 1 5 1 4 , 7 9 1 1 7 2 19 9 4 7 , 0 1 1 , 2 8 8 6 , 6 0 2 , 7 3 6 4 0 8 , 5 5 2 2 , 1 6 5 , 0 0 0 1 5 5 , 5 7 3 2 , 3 2 0 , 5 7 3 1 8 19 9 5 7 , 5 9 1 , 3 3 1 6 , 7 6 6 , 2 8 8 8 2 5 , 0 4 3 3 4 5 , 0 0 0 7 8 , 1 8 2 4 2 3 , 1 8 2 1 9 5 19 9 6 7 , 7 5 3 , 0 1 6 7 , 0 0 7 , 2 9 3 74 5 , 7 2 3 37 0 , 0 0 0 5 2 , 0 1 9 42 2 , 0 1 9 1 7 7 19 9 7 8 , 1 1 0 , 7 4 4 7 , 5 2 6 , 0 3 3 58 4 , 7 1 1 39 0 , 0 0 0 4 0 , 7 4 4 43 0 , 7 4 4 1 3 6 19 9 8 8 , 1 0 8 , 6 1 2 7 , 2 2 6 , 6 4 8 88 1 , 9 6 4 40 0 , 0 0 0 2 2 , 1 8 4 42 2 , 1 8 4 2 0 9 19 9 9 8 , 5 0 2 , 4 2 3 6 , 7 1 3 , 6 7 3 1, 7 8 8 , 7 5 0 42 0 , 0 0 0 8 3 , 4 2 9 50 3 , 4 2 9 3 5 5 20 0 0 8 , 7 9 3 , 3 8 6 7 , 2 0 5 , 9 3 4 1, 5 8 7 , 4 5 2 33 5 , 0 0 0 1 2 7 , 5 2 5 46 2 , 5 2 5 3 4 3 20 0 1 8 , 5 5 6 , 8 1 0 7 , 0 6 5 , 5 8 9 1, 4 9 1 , 2 2 1 31 0 , 0 0 0 1 1 6 , 7 9 4 42 6 , 7 9 4 3 4 9 20 0 2 8 , 5 6 1 , 2 8 7 7 , 3 9 9 , 7 7 3 1, 1 6 1 , 5 1 4 32 5 , 0 0 0 1 0 5 , 2 0 5 43 0 , 2 0 5 2 7 0 Re c r e a t i o n a l F a c i l i t y B o n d s 19 9 3 2 , 9 8 7 , 7 7 4 2 , 6 0 0 , 8 2 6 3 8 6 , 9 4 8 1 9 5 , 0 0 0 7 0 7 , 4 5 4 9 0 2 , 4 5 4 4 3 19 9 4 3 , 4 4 6 , 7 5 5 3 , 0 8 6 , 4 0 1 3 6 0 , 3 5 4 2 0 0 , 0 0 0 8 5 4 , 9 2 0 1 , 0 5 4 , 9 2 0 3 4 19 9 5 3 , 8 2 4 , 6 2 7 3 , 2 6 2 , 9 4 8 5 6 1 , 6 7 9 0 8 3 9 , 2 4 4 8 3 9 , 2 4 4 6 7 19 9 6 4 , 3 1 1 , 1 4 1 3 , 5 4 5 , 2 9 1 76 5 , 8 5 0 25 0 , 0 0 0 7 7 4 , 8 0 0 1, 0 2 4 , 8 0 0 7 5 19 9 7 4 , 4 4 0 , 2 0 2 3 , 9 4 5 , 9 7 5 49 4 , 2 2 7 29 5 , 0 0 0 7 6 2 , 4 1 1 1, 0 5 7 , 4 1 1 4 7 19 9 8 5 , 0 4 2 , 3 9 4 4 , 2 7 0 , 0 4 2 77 2 , 3 5 2 4, 2 4 0 , 0 0 0 3 7 2 , 3 9 0 4, 6 1 2 , 3 9 0 1 7 19 9 9 5 , 1 4 1 , 6 0 6 4 , 3 3 2 , 9 3 2 80 8 , 6 7 4 43 0 , 0 0 0 5 2 2 , 0 5 0 95 2 , 0 5 0 8 5 20 0 0 5 , 7 2 7 , 9 3 0 5 , 2 0 9 , 6 1 0 51 8 , 3 2 0 45 0 , 0 0 0 5 5 3 , 9 6 2 1, 0 0 3 , 9 6 2 5 2 20 0 1 5 , 4 3 0 , 5 0 7 5 , 2 3 1 , 1 4 3 19 9 , 3 6 4 47 0 , 0 0 0 5 3 1 , 1 7 6 1, 0 0 1 , 1 7 6 2 0 20 0 2 5 , 4 2 4 , 4 2 2 5 , 0 3 7 , 9 3 5 38 6 , 4 8 7 6, 7 8 0 , 0 0 0 6 1 1 , 5 0 9 7, 3 9 1 , 5 0 9 5 *B e f o r e i n t e r e s t c o s t s . Ta b l e 1 1 CI T Y O F E D I N A , M I N N E S O T A Pr o p e r t y a n d C o n s t r u c t i o n V a l u e s La s t T e n F i s c a l y e a r s (U n a u d i t e d - s e e a c c o m p a n y i n g a u d i t o r s ' r e p o r t ) Co m m e r c i a l R e s i d e n t i a l co n s t r u c t i o n c o n s t r u c t i o n Fi s c a l N u m b e r o f N u m b e r o f P r o p e r t y v a l u e * ye a r p e r m i t s V a l u e p e r m i t s V a l u e C o m m e r c i a l / I n d u s t r i a l R e s i d e n t i a l / A p a r t m e n t s 19 9 3 3 9 6 3 5 , 0 1 4 , 7 0 4 6 7 3 2 7 , 5 0 5 , 2 1 9 7 1 1 , 4 7 1 , 1 0 0 2 , 8 9 6 , 1 0 5 , 5 0 0 19 9 4 2 6 7 1 4 , 6 9 5 , 4 4 1 6 8 9 2 9 , 9 8 5 , 7 2 7 6 9 1 , 5 7 0 , 8 0 0 3 , 0 4 2 , 3 1 7 , 6 0 0 19 9 5 2 7 4 1 4 , 3 4 9 , 1 4 3 5 6 4 2 8 , 0 6 4 , 1 0 6 6 6 8 , 0 9 8 , 8 0 0 3 , 1 8 1 , 6 9 7 , 8 0 0 19 9 6 2 7 9 3 5 , 7 8 9 , 4 3 2 1 , 3 1 8 3 1 , 3 3 4 , 8 7 0 7 4 5 , 2 0 0 , 7 0 0 3 , 3 2 6 , 1 0 7 , 8 3 4 19 9 7 4 0 7 3 7 , 0 7 4 , 2 9 0 1 , 7 8 0 3 2 , 3 8 7 , 3 1 5 8 2 4 , 7 6 7 , 1 0 0 3 , 4 3 8 , 3 0 9 , 2 0 0 19 9 8 4 6 2 3 8 , 4 9 5 , 8 0 6 1 , 8 3 0 3 5 , 6 2 5 , 1 1 8 9 0 4 , 8 6 9 , 8 0 0 3, 6 2 3 , 1 8 7 , 2 0 0 19 9 9 3 2 3 3 6 , 7 0 8 , 9 4 2 3 , 4 7 8 2 7 , 6 3 7 , 7 4 2 9 8 0 , 8 3 7 , 9 0 0 3, 9 2 4 , 0 3 1 , 4 0 0 20 0 0 1 , 4 1 8 6 6 , 9 8 0 , 4 9 9 4 , 0 1 3 4 8 , 2 7 8 , 7 3 7 1 , 0 6 9 , 9 2 8 , 1 0 0 4 , 3 8 7 , 8 7 4 , 1 0 0 20 0 1 8 3 8 8 6 , 4 8 8 , 8 5 9 4 , 9 7 5 5 7 , 6 5 8 , 7 8 3 1 , 1 7 3 , 3 9 7 , 3 0 0 5 , 0 5 6 , 7 9 7 , 5 0 0 20 0 2 3 0 2 4 4 , 3 0 0 , 1 2 0 1 , 8 9 0 6 9 , 6 1 2 , 6 5 8 1 , 2 1 7 , 2 1 4 , 6 0 0 5 , 8 3 4 , 8 2 1 , 9 0 0 *A s s e s s o r ' s e s t i m a t e d m a r k e t v a l u e Page 122 Table 12 CITY OF EDINA, MINNESOTA Principal Taxpayers December 31, 2002 (Unaudited - see accompanying auditors' report) 2002 tax TaxpayerType of Businesscapacity SouthdaleShopping center$1,950,996 Southdale Office ParkOffice building848,094 GalleriaShopping center784,882 Centennial Lakes Phase IVOffice building568,808 Centennial Lakes Phase VOffice building553,106 United Health Care CorporationOffice building539,116 7700 France Office building473,950 Southdale Medical BuildingOffice building451,904 Centennial Lakes RetailRetail 344,974 Centennial Lakes Phase IIOffice building344,974 Page 123 Table 13 CITY OF EDINA, MINNESOTA Major Employers in the City December 31, 2001 (Unaudited - see accompanying auditors' report) Approximate Number EmployerProduct/Serviceof Employees Fairview Southdale HospitalGeneral Medical & Surgical Hospitals2,400 Jerry's Enterprises Inc.Grocery Stores2,000 Golden Valley Microwave FoodsGrocery Stores650 Health Risk Management Inc.Insurance Carrier552 Marshall FieldsDepartment Store500 J.C. PenneyDepartment Store400 Norwest FundingMortgage Bankers & Correspondents358 Nash Finch Co.Grocery Stores350 International Dairy Queen Inc.Full-Service Restaurants300 Roach Organization Inc.Electronics & Appliance Stores140 Techpower Inc.Employment Services120 Source: City of Edina "Community Profile", Minnesota Department of Trade and Economic Development, 2002 Page 124 Table 14 CITY OF EDINA, MINNESOTA Labor Force Data December 31, 2002 (Unaudited - see accompanying auditors' report) December 2002December 2001 CivilianUnemploymentCivilianUnemployment Labor ForceRateLabor ForceRate Hennepin County695,6583.5%678,2963.5% Mpls.-St. Paul MSA1,828,8663.8%1,776,7763.5% State of Minnesota2,888,0664.0%2,887,8694.0% Source: Minnesota Workforce Center. Page 125 Table 15 CITY OF EDINA, MINNESOTA Miscellaneous Statistics December 31, 2001 (Unaudited - see accompanying auditors' report) Date of incorporationDecember 17, 1888 Date of adoption of Council-Manager PlanJanuary 1, 1955 Present form of governmentCouncil-Manager Fiscal year beginsJanuary 1 Area of City16 square miles Percent of City developed with buildings97% Miles of streets and sewers: Total streets (including state and county)224 miles Sanitary sewer186.22 miles Sewer connections13,984 Fire protection: Number of stations2 Number of employees (full time)31 Police protection: Number of stations1 Number of employees (full time)63 Park areas: Present park acres and open space1,600 Total improved park acres1,007 Number of parks39 Private golf courses2 Public golf courses3 Municipal water plant: Number of wells18 Miles of watermain198.81 Gallons of storage7 million Number of consumers14,025 (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 2001 (estimated June 2001)47,465 2002 (estimated June 2001)47,465 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, 2002 Accounted OriginalAmendedfor inCurrentAmount budgetbudgetprior yearsyearremaining Sources of funds: Bond proceeds$2,200,0005,280,0005,251,998028,002 Tax increments received031,748,48919,093,742849,75611,804,991 Real estate sales*800,000170,782170,78200 State aid0418,871418,87100 Special assessments01,321,096728,5050592,591 Parking permits0268,524268,52400 Community develop- ment0186,064186,06400 Interest on invested funds02,000,0002,413,109108,760(521,869) Other073,88173,88100 Total sources of funds3,000,00041,467,70728,605,476958,51611,903,715 Uses of funds: Land acquisition0873,061873,06100 Installation of public utilities and improvements3,000,0007,867,0347,862,03205,002 Bond payments Principal05,280,0002,200,000700,0002,380,000 Interest04,738,3293,888,974141,300708,055 Administrative costs01,230,0001,205,451024,549 Paid to other governments021,00010,696010,304 Work orders016,25716,25700 Contingencies011,64411,64400 Interest0463,037463,03700 Miscellaneous062,09563,0100(915) Transfer010,000,0005,973,8882,183,3351,842,777 Total uses of funds3,000,00030,562,45722,568,0503,024,6354,969,772 Funds remaining (or deficient)010,905,2506,037,426(2,066,119)6,933,943 Cost to authority Price paid by developer *Real estate sales Liquor store site$128,064105,002 Union oil site134,50665,780 $262,570170,782 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, 2002 Accounted OriginalAmendedfor inCurrentAmount budgetbudgetprior yearsyearremaining Sources of funds: Bond proceeds$6,165,17721,470,00020,219,85201,250,148 Tax increments received075,000,00041,579,7892,704,78030,715,431 Real estate sales*598,0053,000,0002,642,1150357,885 Loan proceeds01,321,096001,321,096 Community develop- ment Block Grant0189,221189,22100 Interest on invested funds03,500,0002,500,53773,944925,519 Other050,0001,357048,643 Total sources of funds6,763,182104,530,31767,132,8712,778,72434,618,722 Uses of funds: Land acquisition6,682,99812,200,0006,894,30305,305,697 Installation of public utilities and improvements016,000,00014,278,82301,721,177 Site improvements or preparation costs2,885,4842,000,000468,09801,531,902 Bond payments Principal021,470,00014,565,0001,515,0005,390,000 Interest020,100,00019,038,322358,492703,186 Administrative costs194,7001,800,0001,674,3440125,656 Paid to other governments0110,00049,17735660,467 Transfers out017,000,0006,606,312010,393,688 Interest reduction01,850,000001,850,000 Parkland dedication fees0767,852767,85200 Total uses of funds9,763,18293,297,85264,342,2311,873,84827,081,773 Funds remaining (or deficient)(3,000,000)11,232,4652,790,640904,8767,536,949 Cost to authority Price paid by developer *Real estate sales Retail site$8,35011,899 Hotel site192,915192,915 Elderly site453,740346,534 Office site1,027,277784,563 Coventry Townhouses1,318,1031,318,103 $3,000,3852,654,014 Page 129 Table 18 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, 2002 Accounted OriginalAmendedfor inCurrentAmount budgetbudgetprior yearsyearremaining Sources of funds: Bond proceeds$4,500,0009,900,0008,075,9151,400,000424,085 Tax increments received029,737,1078,383,796699,78520,653,526 Real estate sales04,700,0004,005,6941,396,650(702,344) Interest on invested funds0300,000696,501109,203(505,704) Other0059,8680(59,868) Total sources of funds4,500,00044,637,10721,221,7743,605,63819,809,695 Uses of funds: Land acquisition 06,500,0003,418,638151,909 2,929,453 Installation of public utilities and improvements4,310,00017,127,0008,591,9981,146,8477,388,155 Bond payments Principal09,900,0001,650,0003,977,5554,272,445 Interest09,190,0002,042,057359,5606,788,383 Loan/note interest00323,519462,806(786,325) Paid to other governments00186,4792,814(189,293) Administrative costs190,0001,920,1071,196,00474,047650,056 Total uses of funds4,500,00044,637,10717,408,6956,175,53821,052,874 Funds remaining (or deficient)$003,813,079(2,569,900)(1,243,179) Cost to authority Price paid by developer *Real estate sales 5229 Eden Ave.$1,822,319 5220 Eden Circle995,000 5244 Eden Circle (Condemnation deposit)309,937 5201 Eden Circle443,2912,070,119 Project area4,005,694 $3,570,5476,075,813 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, 2002 Accounted OriginalAmendedfor inCurrentAmount budgetbudgetprior yearsyearremaining Sources of funds: Bond proceeds$41,400,00041,400,00033,761,67707,638,323 Tax increments received80,000,00090,000,00018,529,8802,799,51468,670,606 Real estate sales*5,000,00011,637,07011,637,07000 Special assessment01,321,096001,321,096 Interest on invested funds02,500,0002,253,359143,613103,028 Transfer in028,000,00013,691,4232,183,33512,125,242 Sale of material0255,710255,71000 Developer payments0297,826297,82600 Other020,00017,71902,281 Total sources of funds126,400,000175,431,70280,444,6645,126,46289,860,576 Uses of funds: Land acquisition13,900,00022,981,42522,981,42500 Installation of public utilities and improvements26,677,00025,871,23016,602,643(7,890)9,276,477 Bond payments Principal41,400,00041,400,0005,734,7241,945,00033,720,276 Interest38,000,00038,000,00027,122,753806,32410,070,923 Administrative costs1,140,8001,600,0001,238,97915,662345,359 Paid to other governments042,00014,2063,34524,449 Loan/note interest014,684,7111,500,844545,02112,638,846 Parkland dedication02,030,3452,030,34500 Total uses of funds121,117,800146,609,71177,225,9193,307,46266,076,330 Funds remaining (or deficient)$5,282,20028,821,9913,218,7451,819,00023,784,246 Cost to authority Price paid by developer *Real estate sales Retail and theater site$3,213,7203,213,720 Medical office site815,092815,092 Office site1,107,1601,107,160 Office building #1449,300449,300 Office building #21,280,7021,280,702 Office building #31,341,5331,341,533 Office building #41,625,8491,625,849 Office building #51,803,7141,803,714 $11,637,07011,637,070 Page 131 Table 20 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, 2002 Accounted OriginalAmendedfor inCurrentAmount budgetbudgetprior yearsyearremaining Sources of funds: Bond proceeds$1,911,0001,911,000001,911,000 Tax increments received2,177,8552,177,855746,86301,430,992 Interest on invested funds00126,88732,954(159,841) Other00000 Total sources of funds4,088,8554,088,855873,75032,9543,182,151 Uses of funds: Land acquisition529,400529,40011,2150518,185 Installation of public utilities and improvements325,000325,00089,468450,811(215,279) Demolition150,000150,00000150,000 Relocation160,000160,00000160,000 Capitalized Interest150,000150,00000150,000 Debt service2,178,4552,178,455002,178,455 Paid to other governments002,7300(2,730) Administrative costs596,000596,00070,5753,995521,430 Total uses of funds4,088,8554,088,855173,988454,8063,460,061 Funds remaining (or deficient)$00699,762(421,852)(277,910)