HomeMy WebLinkAbout2003 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
Reference No.
I. INTRODUCTORY SECTION
Letter of Transmittal 1
Organization 5
Organization Chart 6
II. FINANCIAL SECTION
Independent Auditors' Report 7
Management's Discussion and Analysis 9
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets Statement 1 20
Statement of Activities Statement 2 21
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 23
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds Statement 4 25
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities Statement 5 27
Statement of Net Assets - Proprietary Funds Statement 6 28
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary Funds Statement 7 29
Statement of Cash Flows - Proprietary Funds Statement 8 30
Statement of Fiduciary Net Assets - Fiduciary Funds Statement 9 32
Notes to Financial Statements 33
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund Statement 10 63
Notes to Required Supplementary Information 70
I
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Combining and Individual Non Major Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Special Revenue Funds Statement 11 72
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds Statement 12 73
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual Statement 13 74
Combing Balance Sheet - Nonmajor Proprietary Funds Statement 14 75
Combining Statement of Revenues, Expenditures and Changes in
Net Assets - Nonmajor Proprietary Funds Statement 15 76
Combining Statement of Cash Flows - Nonmajor Proprietary Funds Statement 16 77
Supplementary Financial Information:
Combined Schedule of Indebtedness Exhibit 1 78
Debt Service Payments to Maturity:
Tax Increment and General Obligation Bonds Exhibit 2 80
Public Project Revenue Bonds Exhibit 3 82
Revenue Bonds Exhibit 4 83
Assessed Valuation, Tax Levies and Mill Rates Exhibit 5 84
III. STATISTICAL SECTION (UNAUDITED)
Government-Wide Information:
Government-Wide Expenses By Function Table 1 85
Table 2 87
Fund Information:
Property Tax Levies and Collections Table 3 88
Assessed Value or Tax Capacity and Estimated Market Value of
Taxable Property Table 4 89
Property Tax Rates - All Overlapping Governments Table 5 90
Special Assessment Collections Table 6 91
II
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Ratio of Net Bonded Debt to Assessed Value and Net Bonded
Debt per Capita Table 7 92
Computation of Direct and Overlapping Debt Table 8 93
Ratio of Annual Debt Service Expenditures for General Bonded Table 9 94
Debt to Total General Expenditures
Revenue Bond Coverage Table 10 95
Property and Construction Values Table 11 96
Principal Taxpayers Table 12 97
Major Employers in the City Table 13 98
Labor Force Data Table 14 99
Miscellaneous Statistical Data Table 15 100
Schedule of Sources and Uses of Public Funds for Tax Increment Financing Districts:
For 50th and France - District No. 1200 Table 16 102
For Southeast Edina Redevelopment District No. 1201 Table 17 103
For Grandview Area Redevelopment District No. 1202 Table 18 104
For Southeast Edina Redevelopment District No. 1203 Table 19 105
For 70th and Cahill Road District No. 1207 Table 20 106
III
I. INTRODUCTORY SECTION
2
The independent audit of the financial statements of the City of Edina was part of a broader,
federally mandated “Single Audit” designed to meet the special needs of the federal grantor
agencies. The standards governing Single Audit engagements require the independent
auditor to report not only on the fair presentation of the financial statements, but also on the
audited government’s internal controls and compliance with legal requirements, with special
emphasis on internal controls and legal requirements involving the administration of federal
awards. These reports are available in the City of Edina’s separately issued Single Audit
Report.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The City of Edina’s MD&A can be found immediately
following the report of the independent auditors.
Profile of the Government
The City of Edina, incorporated in 1888, is a fully developed first-ring suburb of
Minneapolis. The City of Edina currently occupies a land area of 16 square miles and serves
a population of 47,570. Currently, 98% of Edina is developed with 55.5% of the land
attributed to residential uses, 13.1% to roadways and 11.8% supporting the park and open
spaces. The remainder of the land is used for commercial, industrial and public/semi-public
uses.
The City of Edina has operated under the council-manager form of government since 1955.
Policy-making and legislative authority are vested in a city council cons isting of the mayor
and four other members. The city council is responsible, among other things, for passing
ordinances, adopting the budget, appointing committees, and hiring the city manager. The
city manager is responsible for carrying out the policie s and ordinances of the council, for
overseeing the day-to-day operations of the city government, and for appointing the heads of
the various departments. The council is elected on a non-partisan basis. Council members
serve four-year staggered terms, with two council members elected every four years and the
mayor and two council members elected in staggered four-year terms. The council and
mayor are elected at large.
The City of Edina provides a full range of services, including police and fire protection; the
construction and maintenance of highways, streets, and other infrastructure; water and sewer
services and recreational activities and cultural events.
The annual budget serves as the foundation for the City of Edina’s financial planning and
control. All departments and agencies of the City of Edina submit request for appropriation
to the city manager in June of each year. The city manager uses these requests as the starting
point for developing a proposed budget. The city manger then presents this proposed budget
to the council for review prior to August 31. The council is required to hold public hearings
3
on the proposed budget and to adopt a final budget by no later than December 31, the close
of the City of Edina’s fiscal year.
The appropriated budget is prepared by fund, function (e.g., public safety), and department
(e.g. police). The City Council may authorize transfers of budgeted amounts between
departments. Budget-to-actual comparisons are provided in this report for each individual
governmental fund for which an appropriated annual budget has been adopted. For the
general fund, this comparison is presented on page 63 as part of the Required Supplementary
Information. For governmental funds, other than the general fund, with appropriated annual
budgets, this comparison is presented in the governmental fund subsection of this report,
which is on page 74.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City of
Edina operates.
Local economy. The City of Edina currently enjoys a favorable economic environment and
local indicators point to continued stability. The region, while noted for a strong retail sector,
enjoyed considerable re-development in recent years. The re-development consisted of
varied manufacturing, medical and high-tech base that adds to the relative stability of the
unemployment rate. Major industries with headquarters or divisions within the government’s
boundaries or in close proximity include medical services, retail operations and banking
services. Edina is home to over 50,000 jobs which are expected to remain stable over the
coming years.
The City of Edina has become known for its quality residential housing stock and attractive
neighborhoods. To date, approximately 98% of the housing stock is in place. Although the
emphasis has changed over the years from exclusively single family housing to a more
balanced mix of housing types, the city’s concern for overall quality in residential
development remains a top priority.
The City of Edina enjoys a AAA bond rating and a Aaa bond rating from Standard and Poors
and Moody’s respectively.
Long-term financial planning. The city continues to focus on quality of life improvements
throughout the city. These efforts cover a broad array of areas including protecting and
improving the environment, revitalization of parks and public areas, expending recreational
opportunities, expanding city services, and increasing communication between city
representatives and the public.
The city is working closely with state government, federal government and neighboring
communities to improve the area’s state and county transportation network, which includes
upgraded highways and well-placed pathways. Funding for most of the transportation
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2003
Term Expires
Mayor:
Dennis Maetzold December 31, 2005
Council Members:
James Hovland December 31, 2007
Scot Housh December 31, 2007
Michael Kelly December 31, 2005
Linda Masica December 31, 2005
City Manager:
Gordon Hughes Appointed
Finance Director/Treasurer:
John Wallin Appointed
City Clerk:
Debra Mangen Appointed
5
II. FINANCIAL SECTION
9
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Edina, we offer readers of the City of Edina’s financial
statements this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2003. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which can be found on pages 1 through 4 of this report.
Certain comparative information between the current year and the prior year is required to be
presented in the Management’s Discussion and Analysis. However, since this is the first year
of implementation of the new reporting model, contained in GASB Statement No. 34, and the
Statement permits the omission of prior year data in the year of implementation, the City of
Edina has elected not to prepare comparative data due to the cost of adjusting the prior year’s
financial statements to the new reporting model. A summary of comparative info rmation
will be included with the 2004 financial statements.
Financial Highlights
The assets of the City of Edina exceeded its liabilities at the close of the most recent fiscal
year by $105,315,759 (Net assets). Of this amount, $47,221,257 (unrestricted net assets)
may be used to meet the government’s ongoing obligations to citizens and creditors in
accordance with the City's fund designations and fiscal policies.
The City’s total net assets increased by $12,867,165.
As of the close of the current fiscal year, the City of Edina’s governmental funds reported
combined ending fund balances of $34,754,678. Of this total amount, $25,283,335, or 73%
is designated or reserved through legal restrictions and City Council authorization.
At the end of the current fiscal year the general fund balance of $10,374,065, included
$412,991 reserved and $9,961,074 designated.
The City’s total debt decreased by $1,995,000 during the current fiscal year, from
$70,735,000 to $68,740,000.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Edina’s
basic financial statements. The City’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Management’s Discussion and Analysis
10
Government -wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Edina’s finances, in a
manner similar to a private-sector business.
The statement of net assets presents information on all of the City of Edina’s assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the
City of Edina is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused
vacation leave).
Both of the government-wide financial statements distinguish functions of the City of Edina
that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business-type activities). The governmental activities of
the City of Edina include general government, public safety, public works and parks. The
business-type activities of the City of Edina include utilities, liquor, aquatic center, golf
course and community activity centers.
The government-wide financial statements can be found on pages 20 through 22 of this
report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
City of Edina, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
of Edina can be divided into three categories: governmental funds, proprietary funds, and
fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the
same functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government’s near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government-
wide financial statements, it is useful to compare the information presented for
governmental funds with similar information presented for governmental activities in
Management’s Discussion and Analysis
11
the government-wide financial statement. By doing so, readers may better understand
the long-term impact of the City's near term financial decisions. Both the
governmental fund balance sheet and governmental fund statement of revenues,
expenditures, and change in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City of Edina maintains 5 individual major governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental
fund statement of revenues, expenditures, and changes in fund balances for the
general fund, debt service fund, construction fund, Housing and Redevelopment
Authority fund and the revolving fund.
Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major governmental funds
are provided in the form of combining statements elsewhere in this report.
The City of Edina adopts an annual appropriated budget for its general fund and one
of its special revenue funds.
A budgetary comparison statement has been provided for those funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements can be found on pages 23 through
27 of this report.
Proprietary funds . The City of Edina maintains four major enterprise funds.
Enterprise funds are used to report the same functions presented as business-type
activities in the governmental-wide financial statements. The City of Edina uses
enterprise funds to account for its utility, liquor, aquatic center and golf course
operations.
Data from the other proprietary funds are combined into a single, aggregated
presentation. Individual fund data for each of these non-major proprietary funds are
provided in the form of combining statements elsewhere in this report.
Proprietary funds provide the same type of information as the government-wide
financial statements, only in more detail.
The basic proprietary fund financial statements can be found on pages 28 through 31
of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the
benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are not
Management’s Discussion and Analysis
12
available to support the City of Edina’s own programs. The accounting used for
fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on page 32 of this report.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government–wide and fund financial
statements. The notes to the financial statements can be found on pages 33 through 62 of this
report.
Other information. The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund statements and
schedules can be found on pages 72 through 77 of this report.
Government -wide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's
financial position. In the case of the City of Edina, assets exceeded liabilities by
$105,315,759 at the close of the most recent fiscal year.
The largest portion of the City of Edina's net assets ($51,744,926 or 49.1 %) reflects its
investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related
debt used to acquire those assets that is still outstanding. The City of Edina uses these capital
assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City of Edina's investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided
from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
With the first year implementation of Governmental Accounting Standards Board Statement
34, the City is not presenting comparable columns in the various comparison's and analyses
for the previous year. Comparative information will be provided in future years.
Management’s Discussion and Analysis
13
CITY OF EDINA'S NET ASSETS
Governmental Business-Type
Activities Activities Total
Current and other assets $41,326,412 $17,427,523 $58,753,935
Capital assets 80,485,636 44,276,094 124,761,730
Total assets $121,812,048 $61,703,617 $183,515,665
Long-term liabilities outstanding $52,245,749 $11,793,473 $64,039,222
Other liabilities 11,220,391 2,940,293 14,160,684
Total liabilities $63,466,140 $14,733,766 $78,199,906
Net assets:
Invested in capital assets, net of related debt $21,792,377 $29,952,549 $51,744,926
Restricted 4,676,748 1,672,828 6,349,576
Unrestricted 31,876,783 15,344,474 47,221,257
Total net assets $58,345,908 $46,969,851 $105,315,759
A portion of the City of Edina's net assets represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets
($47,221,257) may be used to meet the City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City of Edina is able to report positive balances in all
three categories of net assets, both for the government as a whole, as well as for its separate
governmental and business-type activities.
The City’s net assets increased by $12,867,165 during the current fiscal year. About one half
of this increase represents the degree to which increases in ongoing revenues have
outstripped similar increases in ongoing expenses. The remainder of this growth largely
reflects rate increases and increases in operating and capital grants.
Management’s Discussion and Analysis
14
Governmental Activities
Governmental activities increased the City of Edina's net assets by $6,398,414, accounting
for 49.7% of the total growth in net assets. Key elements of this increase are as follows:
City of Edina's Changes in Net Assets
Governmental Business-Type
Activities Activities Total
Revenues:
Program revenues:
Charges for services $6,041,613 $26,866,762 $32,908,375
Operating grants and contributions 1,215,745 132,031 1,347,776
Capital grants and contributions 7,214,393 - 7,214,393
General revenues:
Property taxes 15,600,985 - 15,600,985
Other taxes 9,556,711 - 9,556,711
Gain on disposal of asset 26,669 26,669
Unrestricted investment earnings 286,209 387,117 673,326
Total revenues 39,942,325 27,385,910 67,328,235
Expenses:
General government 5,839,893 - 5,839,893
Public safety 10,784,215 - 10,784,215
Public works 5,621,291 - 5,621,291
Parks 4,484,685 - 4,484,685
Interest on long-term debt 2,760,022 - 2,760,022
Loss on the sale of assets - 177,051 177,051
Utilities - 7,930,502 7,930,502
Liquor - 8,764,081 8,764,081
Aquatic Center - 711,061 711,061
Golf course - 3,555,243 3,555,243
Community Activity Centers - 3,833,026 3,833,026
Total expenses 29,490,106 24,970,964 54,461,070
Increase in net assets before transfers 10,452,219 2,414,946 12,867,165
Transfers (4,053,805) 4,053,805 -
Increase in net assets 6,398,414 6,468,751 12,867,165
Net assets - January 1, 2003 51,947,494 40,501,100 92,448,594
Net assets - December 31, 2003 $58,345,908 $46,969,851 $105,315,759
Management’s Discussion and Analysis
15
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
0.8%15.1%23.9%
18.1%
39.1%
3.0%
Governmental Activities - Revenues
Charges for services
Operating grants and
contributions
Capital grants and
contributions
Property taxes
Other taxes
Unrestricted investment
earnings
19.8%
15.2%
9.4%
36.6%
19.0%
Governmental Activities - Expenses
General
government
Public safety
Public works
Parks
Interest on long- term debt
Management’s Discussion and Analysis
16
Business-Type Activities
Business-type activities increased ne t assets by $6,468,751 accounting for 50.3% of the City
of Edina's growth in net assets. Below are graphs showing the business-type activities
revenue and expense comparisons:
0.5%1.4%
98.1%
Business-Type Activities - Revenues
Charges for services
Capital grants and
contributions
Unrestricted investment
earnings
15.4%
14.2%
2.8%
35.1%
31.8%.7%
Business-Type Activities - Expenses
Utilities
Liquor
Aquatic Center
Golf Course
Loss on sale of assetsCommunity Center
Activities
Management’s Discussion and Analysis
17
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City of Edina’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City of Edina’s financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City of Edina's governmental funds reported
combined ending fund balances of $34,754,678. Approximately 87 percent of this total
amount ($30,256,700) constitutes unreserved fund balance. The remainder of the fund
balance ($4,497,978) is reserved because it has already been committed 1) to provide for
prepaid items ($412,991), 2) to pay committed contracts ($735,086), 3) for special projects
($1,173,172), 4) to pay debt service ($2,176,729).
The general fund decreased by $4,369,000 in 2003, which was due to a transfer of designated
funds for Edinborough Park to the Edinborough Park fund and holding costs down to cover
for the loss of Market Value Credit Aid.
The debt service fund increased by $625,522 in 2003 as property tax collections and interest
exceeded annual debt payment requirements.
The construction fund increased by $628,887 in 2003 as municipal state aid payments
exceeded construction costs.
The Housing and Redevelopment Authority fund decreased by $995,869 in 2003 as several
districts are rapidly paying down the debt that was issued. Two of the districts expire in 2009
and have the majority of the principal being paid over the next few years.
The revolving fund decreased by $7,501,491 in 2003 due to construction costs of the new
City Hall and Police facility.
The non major special revenue funds decreased by $902,741 for 2003 due to a $950,000
transfer to the revolving fund to cover the cost of communication equipment in the new City
Hall and Police facility.
Proprietary funds . Business-type activities increased the City of Edina’s net assets by
$6,468,751. Key elements of this increase are as follows.
· The utility fund increased net assets in 2003 by $1,650,063 due to a rate increase to
cover the costs of updating the water and sewer system.
· The non major funds increased net assets in 2003 by $4,546,574 which is due to the
$4,645,868 transfer from the general fund as noted above.
Management’s Discussion and Analysis
18
Budgetary Highlights
General Fund
There were no changes made to the original budget. During the year, revenues exceeded
budgetary estimates and expenditures were less than budgetary estimates, thus eliminating
the need to draw upon existing fund balance.
Capital Asset and Debt Administration
Capital assets. The City of Edina’s, investment in capital assets for its governmental and
business type activities as of December 31, 2003, amounted to $124,761,730 (net of
accumulated depreciation). This investment in capital assets included land, land
improvements, buildings, vehicles and equipment.
City of Edina’s Capital Assets
(Net of Depreciation)
Governmental Business-Type
Activities Activities Total
Land and land improvements $30,364,104 $6,082,728 $36,446,832
Buildings 12,316,836 8,443,149 20,759,985
Improvements other than buildings 6,266,281 26,057,775 32,324,056
Machinery and equipment 5,680,678 2,198,993 7,879,671
Construction in progress 25,857,737 1,493,449 27,351,186
Total $80,485,636 $44,276,094 $124,761,730
Additional information on the City of Edina’s capital assets can be found in Note 4.
Major capital asset events during the current fiscal year included the following:
· Construction began on the new City Hall and Police facility; construction in progress
as of the close of the year reached $12,534,819.
· A variety of street construction, sidewalk and traffic signal projects began in 2003;
construction in progress as of the close of the year reached $11,157,532.
· Various water and sewer projects were completed in the Utilities fund at a cost of
$2,386,402.
· Major improvements began on the water and sewer system, specifically the SCADA
project; construction in progress as of the close of the year reached $1,216,646.
Management’s Discussion and Analysis
19
Long-term debt. At the end of the current fiscal year, the City of Edina had total long-term
debt outstanding of $68,740,000, a decrease of $1,995,000 from 2002. $8,165,000 is for
general obligation improvement debt that is supported by property tax levies. An additional
$35,900,000 of general obligation tax increment debt which financed the City’ economic
development program. Also outstanding is $12,035,000 public project revenue bonds which
financed the new City Hall and Police facility.
There is a total of $12,640,000 in revenue bonds for improvements to the enterprise funds.
Additional long-term debt in the amount of $3,534,516 for compensated absences and
$264,585 for capital leases.
City of Edina’s Outstanding Debt
General Obligation Improvement Bonds and General Obligation Tax Increment Bonds.
Governmental Business-Type
Activities Activities Total
Tax increment bonds $35,900,000 - $35,900,000
General obligation bonds 8,165,000 - 8,165,000
Public project revenue bonds 12,035,000 - 12,035,000
Revenue bonds - 12,640,000 12,640,000
Total $56,100,000 $12,640,000 $68,740,000
The City of Edina maintains a Aaa rating from Moody's and a AAA rating from Standard &
Poor’s.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 2% of
total Estimated Market Value. The current debt limitation for the City of Edina is
$138,189,534. Only $6,002,703 of the City's outstanding debt is counted within the statutory
limitation.
Requests for information. This financial report is designed to provide a general overview
of the City of Edina’s finances for all those with an interest in the government’s finances.
Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Office of the Finance Director, 4801 West
50th Street, Edina, Minnesota 55424.
BASIC FINANCIAL STATEMENTS
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2003
Governmental Business-Type
Assets:Activities Activities Total
Current assets:
Cash and cash equivalents $205,346 $11,965 $217,311
Cash and investments with fiscal agents - 3,915 3,915
Investments 34,540,455 9,148,573 43,689,028
Accrued interest 80,550 51,041 131,591
Accounts receivable 396,322 2,675,464 3,071,786
Special assessments receivable 2,916,910 130,453 3,047,363
Due from other governments 930,720 6,932 937,652
Prepaid items 412,991 - 412,991
Internal balances (1,657,793)1,657,793 -
Inventory - 1,150,137 1,150,137
Deferred charges 169,403 37,740 207,143
Total current assets 37,994,904 14,874,013 52,868,917
Noncurrent assets:
Restricted investments 3,331,508 2,553,510 5,885,018
Nondepreciable capital assets 37,707,211 2,582,414 40,289,625
Net capital assets 42,778,425 41,693,680 84,472,105
Total noncurrent assets 83,817,144 46,829,604 130,646,748
Total assets 121,812,048 61,703,617 183,515,665
Liabilities:
Current liabilities:
Accounts payable 1,093,737 510,946 1,604,683
Salaries payable 641,981 218,674 860,655
Contracts payable 471,725 56,312 528,037
Accrued interest payable 1,076,729 131,424 1,208,153
Due to other governments 145,735 157,008 302,743
Deposits payable 26,032 3,922 29,954
Taxes payable 60,333 - 60,333
Unearned revenue 274,722 82,125 356,847
Liabilities payable from restricted funds 831,489 880,682 1,712,171
Compensated absences payable 75,000 44,200 119,200
Lease payable 72,908 35,000 107,908
Bonds payable 6,450,000 820,000 7,270,000
Total current liabilities 11,220,391 2,940,293 14,160,684
Noncurrent liabilities:
Compensated absences payable 2,744,820 670,496 3,415,316
Lease payable 156,677 - 156,677
Bonds payable, net 49,344,252 11,122,977 60,467,229
Total noncurrent liabilities 52,245,749 11,793,473 64,039,222
Total liabilities 63,466,140 14,733,766 78,199,906
Net assets:
Invested in capital assets, net of related debt 21,792,377 29,952,549 51,744,926
Restricted for:
Debt service 4,676,748 1,672,828 6,349,576
Unrestricted 31,876,783 15,344,474 47,221,257
Total net assets $58,345,908 $46,969,851 $105,315,759
Primary Government
The accompanying notes are an integral part of these financial statements.
20
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2003
Charges For
Expenses Services
Functions/Programs
Primary government:
Government activities:
General government $5,839,893 $930,391
Public safety 10,784,215 4,213,081
Public works 5,621,291 528,892
Parks 4,484,685 369,249
Interest on long-term debt 2,760,022 -
Total government activities 29,490,106 6,041,613
Business-type activities:
Utilities 7,930,502 9,694,981
Liquor 8,764,081 9,659,631
Aquatic Center 711,061 861,340
Golf Course 3,555,243 3,684,079
Community Activity Centers 3,833,026 2,966,731
Total business-type activities 24,793,913 26,866,762
Total primary government $54,284,019 $32,908,375
The accompanying notes are an integral part of these financial statements.
21
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities Total
$221,796 - ($4,687,706) - ($4,687,706)
792,107 166,189 (5,612,838) - (5,612,838)
195,000 6,989,654 2,092,255 - 2,092,255
6,842 58,550 (4,050,044) - (4,050,044)
- - (2,760,022) - (2,760,022)
1,215,745 7,214,393 (15,018,355) - (15,018,355)
114,348 - - 1,878,827 1,878,827
- - - 895,550 895,550
- - - 150,279 150,279
- - - 128,836 128,836
17,683 - - (848,612)(848,612)
132,031 - - 2,204,880 2,204,880
$1,347,776 $7,214,393 ($15,018,355)$2,204,880 ($12,813,475)
General revenues:
Property taxes $15,600,985 - $15,600,985
Public service taxes 2,214,441 - 2,214,441
Tax increment collections 7,342,270 - 7,342,270
Unrestricted investment earnings 286,209 387,117 673,326
Gain (loss) on disposal of capital assets 26,669 (177,051)(150,382)
Transfers (4,053,805)4,053,805 -
Total general revenues and transfers 21,416,769 4,263,871 25,680,640
Change in net assets 6,398,414 6,468,751 12,867,165
Net assets - beginning 51,947,494 40,501,100 92,448,594
Program Revenues
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
22
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2003
Housing &
Debt Redevelopment
Assets General Service Construction Authority
Cash and cash equivalents $3,300 $184,840 - $17,206
Investments - unrestricted 7,313,452 999,141 - 13,752,497
Investments - restricted 3,331,508 - - -
Accounts receivable 184,309 - - 93,591
Accrued interest 313 - - 51,850
Special assessments receivable - - - -
Due from other funds 137,444 978,316 - -
Due from other governments 297,089 14,432 333,550 128,263
Prepaid items 412,991 - - -
Total assets $11,680,406 $2,176,729 $333,550 $14,043,407
Liabilities and Fund Balances
Liabilities:
Accounts payable $347,351 - $7,387 $630,523
Salaries payable 635,370 - - -
Contracts payable - - 9,656 40,682
Due to other funds 282,777 - 4,049,694 137,444
Due to other governments 30,733 - - 14,815
Deposits payable 10,000 - 16,032 -
Taxes payable - - - -
Deferred revenue 110 - 273,891 -
Total liabilities 1,306,341 - 4,356,660 823,464
Fund balance (deficit):
Reserved for:
Prepaid items 412,991 - - -
Encumbrances - - 412,267 -
Special projects - - - -
Debt service - 2,176,729 - -
Unreserved reported in:
Designated:
General Fund 9,961,074 - - -
Capital Project Funds - - - -
Undesignated:
Special Revenue Funds - - - -
Capital Project Funds - - (4,435,377)13,219,943
Total fund balance (deficit)10,374,065 2,176,729 (4,023,110)13,219,943
Total liabilities and fund balances $11,680,406 $2,176,729 $333,550 $14,043,407
Fund balance reported above
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore, are not reported in the funds
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds.
Net assets of governmental activities
The accompanying notes are an integral part of these financial statements.
23
Statement 3
Other Total
Governmental Governmental
Revolving Funds Funds
- - $205,346
11,880,630 594,735 34,540,455
- - 3,331,508
13,750 104,672 396,322
23,066 5,321 80,550
2,916,910 - 2,916,910
1,730,542 18,843 2,865,145
3,153 154,233 930,720
- - 412,991
$16,568,051 $877,804 $45,679,947
$874,147 $33,189 $1,892,597
2,568 4,043 641,981
454,016 - 504,354
- 53,023 4,522,938
135 100,052 145,735
- - 26,032
60,333 - 60,333
2,856,578 720 3,131,299
4,247,777 191,027 10,925,269
- - 412,991
322,819 - 735,086
1,173,172 - 1,173,172
- - 2,176,729
- - 9,961,074
10,824,283 - 10,824,283
- 686,777 686,777
- - 8,784,566
12,320,274 686,777 34,754,678
$16,568,051 $877,804 $45,679,947
$34,754,678
80,485,636
2,856,577
(59,750,983)
$58,345,908
24
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2003
Housing &
Debt Redevelopment
Revenues:General Service Construction Authority Revolving
General property taxes $15,630,007 $2,273,611 - - -
Tax increment collections - - 7,342,270 -
Special assessments - - - - 1,019,461
Franchise fees - - - - -
License and permits 2,182,263 - - - -
Intergovernmental 1,081,986 - 3,310,175 - 67,884
Charges for services 1,839,873 - 194,952 - 41,694
Fines and forfeitures 785,227 - - - -
Investment income (156,753)11,097 - 211,982 203,310
Sale and rental of property 353,298 - - - 968
Other revenues 10,047 - - 4,080 168,034
Total revenues 21,725,948 2,284,708 3,505,127 7,558,332 1,501,351
Expenditures:
Current:
General government 3,363,297 2,804 - 1,731,425 12,194
Public safety 10,271,030 - - - 81,786
Public works 3,964,858 - - - 177,810
Parks 2,752,502 - - - 221,662
Capital outlay:
General government - - - - 10,139,960
Public safety 474,121 - - - 469,668
Public works 512,234 - 2,876,240 - 495,486
Parks 15,688 - - - 556,279
Debt service:
Bond principal - 5,700,000 - - -
Interest and fiscal charges - 2,883,377 - - 25,410
Total expenditures 21,353,730 8,586,181 2,876,240 1,731,425 12,180,255
Revenues over (under) expenditures 372,218 (6,301,473)628,887 5,826,907 (10,678,904)
Other financing sources (uses):
Transfers in - 6,822,776 - - 1,929,350
Transfers out (4,741,218) - - (6,822,776)(291,937)
Proceeds from refunding bonds - principal - 6,570,000 - - -
Proceeds from refunding bonds - premium 59,219
Payments for refunding bonds - (6,525,000) - - -
Equipment certificates issued - - - - 1,540,000
Total other financing sources (uses)(4,741,218)6,926,995 - (6,822,776)3,177,413
Net increase (decrease) in fund balance (4,369,000)625,522 628,887 (995,869)(7,501,491)
Fund balance (deficit) - January 1 14,743,065 1,551,207 (4,651,997)14,215,812 19,821,765
Fund balance (deficit) - December 31 $10,374,065 $2,176,729 ($4,023,110)$13,219,943 $12,320,274
The accompanying notes are an integral part of these financial statements.
25
Statement 4
Other Total
Governmental Governmental
Funds Funds
- $17,903,618
- 7,342,270
- 1,019,461
393,627 393,627
- 2,182,263
218,690 4,678,735
- 2,076,519
- 785,227
16,573 286,209
- 354,266
18,390 200,551
647,280 37,222,746
600,021 5,709,741
- 10,352,816
- 4,142,668
- 2,974,164
- 10,139,960
- 943,789
- 3,883,960
- 571,967
- 5,700,000
- 2,908,787
600,021 47,327,852
47,259 (10,105,106)
- 8,752,126
(950,000)(12,805,931)
- 6,570,000
59,219
- (6,525,000)
- 1,540,000
(950,000)(2,409,586)
(902,741)(12,514,692)
1,589,518 47,269,370
$686,777 $34,754,678
26
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 5
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2003
Amounts reported for governmental activities in the
statement of activities (page 21) are different because:
Net changes in fund balances - total governmental funds (page 26)($12,514,692)
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current
period.12,132,792
The effect of disposals of capital assets is to decrease net assets (34,655)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds.2,768,385
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources
to governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however, has
any effect on net assets. This amount is the net effect of these differences in the treatment
of long-term debt and related items.4,238,735
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.(192,151)
Change in net assets of governmental activities (page 21)$6,398,414
The accompanying notes are an integral part of these financial statements.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS Statement 6
PROPRIETARY FUNDS
December 31, 2003
Aquatic Golf Other
Assets:Utilities Liquor Center Course Enterprise Total
Current assets:
Cash and cash equivalents - $4,440 - $4,400 $3,125 $11,965
Cash with fiscal agents - - - 313 3,602 3,915
Investments 4,430,852 - - - 4,717,721 9,148,573
Accounts receivable:
Accounts - 1,500 - 7,373 133,769 142,642
Customers 2,532,822 - - - - 2,532,822
Interest 8,832 - - - 42,209 51,041
Special assessments 130,453 - - - - 130,453
Net accounts receivable 2,672,107 1,500 - 7,373 175,978 2,856,958
Due from other funds 454,490 692,955 583,785 - 1,291 1,732,521
Due from other governments 6,932 - - - - 6,932
Inventory 66,463 1,048,782 - 17,030 17,862 1,150,137
Deferred charges 17,060 - 5,170 9,513 5,997 37,740
Total current assets 7,647,904 1,747,677 588,955 38,629 4,925,576 14,948,741
Noncurrent assets:
Restricted investments 2,553,510 - - - - 2,553,510
Net capital assets 28,617,952 1,527,412 2,577,529 6,721,445 4,831,756 44,276,094
Total noncurrent assets 31,171,462 1,527,412 2,577,529 6,721,445 4,831,756 46,829,604
Total assets 38,819,366 3,275,089 3,166,484 6,760,074 9,757,332 61,778,345
Liabilities:
Current liabilities:
Accounts payable 116,397 187,986 481 136,311 69,771 510,946
Salaries payable 49,350 51,174 - 45,533 72,617 218,674
Contracts payable 43,782 - - 12,530 - 56,312
Accrued interest payable - - 29,376 85,578 16,470 131,424
Due to other funds - - - 32,084 42,644 74,728
Due to other governments 37,270 107,884 92 5,223 6,539 157,008
Compensated absences payable 7,010 8,032 - 9,390 19,768 44,200
Deposits payable - - - 3,922 - 3,922
Deferred revenue - 2,226 - 13,961 65,938 82,125
Bonds payable - current - - 95,000 545,000 180,000 820,000
Capital lease payable - current - - - 2,800 32,200 35,000
Total current liabilities 253,809 357,302 124,949 892,332 505,947 2,134,339
Current liabilities payable from restricted assets:
Accounts payable 79,701 - - - - 79,701
Deposits payable 94,035 - - - - 94,035
Bonds payable 635,000 - - - - 635,000
Accrued interest payable 71,946 - - - - 71,946
Total current liabilities payable
from restricted assets 880,682 - - - - 880,682
Noncurrent liabilities:
Bonds payable, net 4,833,090 - 1,387,013 3,868,105 1,034,769 11,122,977
Compensated absences payable 160,078 110,987 - 182,952 216,479 670,496
Total noncurrent liabilities 4,993,168 110,987 1,387,013 4,051,057 1,251,248 11,793,473
Total liabilities 6,127,659 468,289 1,511,962 4,943,389 1,757,195 14,808,494
Net assets:
Invested in capital assets, net of related debt 21,459,974 1,527,412 1,090,346 2,296,027 3,578,790 29,952,549
Restricted for debt service 1,672,828 - - - - 1,672,828
Unrestricted 9,558,905 1,279,388 564,176 (479,342)4,421,347 15,344,474
Total net assets $32,691,707 $2,806,800 $1,654,522 $1,816,685 $8,000,137 $46,969,851
The accompanying notes are an integral part of these financial statements.
28
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2003
Aquatic Golf Other
Utilities Liquor Center Course Enterprise Total
Operating revenues:
Sales - liquor - $9,659,631 - - - $9,659,631
Sales - retail - - 2,734 254,005 90,916 347,655
Sales - utilities 9,500,734 - - - - 9,500,734
Sales - concessions - - 132,842 306,354 34,930 474,126
Memberships - - 450,636 126,877 62,626 640,139
Admissions - - 252,019 299,227 251,725 802,971
Building rental - - 22,780 81,477 1,287,165 1,391,422
Rental of equipment - - - 357,078 73,798 430,876
Greens fees - - - 1,847,595 171,059 2,018,654
Other fees 167,700 - 329 385,626 994,512 1,548,167
Total operating revenues 9,668,434 9,659,631 861,340 3,658,239 2,966,731 26,814,375
Operating expenses:
Cost of sales and services 25,305 7,141,978 33,406 322,574 45,972 7,569,235
Personal services 1,184,868 1,040,145 228,276 1,657,236 1,729,262 5,839,787
Contractual services 4,632,247 320,390 79,517 463,252 1,110,178 6,605,584
Commodities 614,595 52,624 99,239 386,715 304,367 1,457,540
Central Services 277,324 136,235 26,420 78,287 134,897 653,163
Depreciation 1,029,858 72,709 183,742 468,382 468,769 2,223,460
Total operating expenses 7,764,197 8,764,081 650,600 3,376,446 3,793,445 24,348,769
Operating income (loss)1,904,237 895,550 210,740 281,793 (826,714)2,465,606
Nonoperating revenues (expenses):
Intergovernmental 114,348 - - - - 114,348
Investment income 48,287 - - 449 338,381 387,117
Donations - - - - 17,683 17,683
Miscellaneous 26,546 - - 25,840 - 52,386
Interest and fiscal charges (160,691) - (59,356)(172,954)(33,292)(426,293)
Interest on capital lease - - - (352)(4,043)(4,395)
Loss on sale of capital asset (177,051) - - - - (177,051)
Amortization of bond discount (5,613) - (1,105)(5,491)(2,246)(14,455)
Total nonoperating
revenues (expenses)(154,174) - (60,461)(152,508)316,483 (50,660)
Income (loss) before transfers 1,750,063 895,550 150,279 129,285 (510,231)2,414,946
Transfers:
Transfer from:
General Fund - - - - 4,645,868 4,645,868
Enterprise Funds - - - - 119,000 119,000
Capital Projects Funds - - - - 291,937 291,937
Transfers to:
Capital Project Funds (100,000)(784,000) - - - (884,000)
Enterprise Funds - (111,000) - (8,000) - (119,000)
Total transfers (100,000)(895,000) - (8,000)5,056,805 4,053,805
Change in net assets 1,650,063 550 150,279 121,285 4,546,574 6,468,751
Net assets - January 1 31,041,644 2,806,250 1,504,243 1,695,400 3,453,563 40,501,100
Net assets - December 31 $32,691,707 $2,806,800 $1,654,522 $1,816,685 $8,000,137 $46,969,851
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2003
Aquatic Golf
Utilities Liquor Center Course Other Totals
Cash flows from operating activities:
Receipts from customers and users $9,054,353 $9,666,316 $861,340 $3,645,625 $3,030,056 $26,257,690
Payment to suppliers (5,709,425)(7,810,272)(477,298)(910,560)(1,480,533)(16,388,088)
Payment to employees (1,165,502)(1,031,461)(228,276)(1,668,498)(1,695,312)(5,789,049)
Miscellaneous revenue - - - 25,840 - 25,840
Net cash provided by
(used in) operating activities 2,179,426 824,583 155,766 1,092,407 (145,789)4,106,393
Cash flows from noncapital financing activities:
State grant 114,348 - - - - 114,348
Transfer (to) from Enterprise Funds - (111,000) - (8,000)119,000 -
Transfer (to) from Capital Project Funds (100,000)(784,000) - - 291,937 (592,063)
Transfer from General Fund - - - - 4,645,868 4,645,868
Donations - - - - 17,683 17,683
Net cash provided by (used in)
noncapital financing activities 14,348 (895,000) - (8,000)5,074,488 4,185,836
Cash flows from capital and related
financing activities:
Proceeds from bonds 3,174,028 - - - - 3,174,028
Acquisition of capital assets (2,490,506)(5,244)(15,268)(484,105)(291,936)(3,287,059)
Sale of capital assets 26,546 - - - - 26,546
Loss on sale of capital assets (177,051) - - - - (177,051)
Principal paid on bonds (335,000) - (80,000)(495,000)(170,000)(1,080,000)
Principal paid on capital lease - - - (4,800)(55,200)(60,000)
Interest paid on bonds (131,992) - (60,498)(179,795)(35,185)(407,470)
Interest paid on capital lease - - - (352)(4,043)(4,395)
Net cash provided by (used in)
capital and related financing activities 66,025 (5,244)(155,766)(1,164,052)(556,364)(1,815,401)
Cash flows from investing activities:
Proceeds from sales of investments - - - 79,306 - 79,306
Purchase of investments (2,508,992) - - - (4,643,982)(7,152,974)
Investment income 80,598 - - 449 273,114 354,161
Net cash flows provided by
(used in) investing activities (2,428,394) - - 79,755 (4,370,868)(6,719,507)
Net increase (decrease)
in cash and cash equivalents (168,595)(75,661) - 110 1,467 (242,679)
Cash and cash equivalents - January 1 168,595 80,101 - 4,603 5,260 258,559
Cash and cash equivalents - December 31 - $4,440 - $4,713 $6,727 $15,880
The accompanying notes are an integral part of these financial statements.
30
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2003
Aquatic Golf
Utilities Liquor Center Course Other Totals
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) $1,904,237 $895,550 $210,740 $281,793 ($826,714)$2,465,606
Adjustments to reconcile operating income (loss)
to net cash flows provided by
(used in) operating activities:
Miscellaneous revenue - - - 25,840 - 25,840
Depreciation 1,029,858 72,709 183,742 468,382 468,769 2,223,460
Changes in assets and liabilities:
Decrease (increase) in receivables (605,227)5,099 - (284)(2,613)(603,025)
Decrease (increase) in special assessments (16,079) - - - - (16,079)
Decrease (increase) in due from other funds (114,422)(26,704)(119,781)191,522 70,440 1,055
Decrease (increase) in due from governments (4,755) - 173 - - (4,582)
Decrease (increase) in prepaid expense - - - 10,450 - 10,450
Decrease (increase) in inventory 6,249 41,348 - - (4,313)43,284
Increase (decrease) in accounts payable (48,707)(175,897)(119,195)95,669 3,423 (244,707)
Increase (decrease) in salaries payable 6,162 2,435 - 4,343 10,146 23,086
Increase (decrease) in contracts payable (13,233) - - 10,530 - (2,703)
Increase (decrease) in due to other funds - - - 32,084 42,644 74,728
Increase (decrease) in due to other governments 14,914 2,208 87 13 2,687 19,909
Increase (decrease) in compensated absences 13,204 6,249 - (15,605)23,804 27,652
Increase (decrease) in deposits 7,225 - - (7,389) - (164)
Increase (decrease) in deferred revenue - 1,586 - (4,941)65,938 62,583
Total adjustments 275,189 (70,967)(54,974)810,614 680,925 1,640,787
Net cash provided by
(used in) operating activities $2,179,426 $824,583 $155,766 $1,092,407 ($145,789)$4,106,393
Noncash investing, capital and financing activities:
Increase in fair value of investments $9,617 - - - $73,739 $83,356
The accompanying notes are an integral part of these financial statements.
31
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS Statement 9
FIDUCIARY FUNDS
December 31, 2003
Agency Funds
Assets
Cash $239,418
Investments 325,000
Total assets 564,418
Liabilities
Accounts payable $8,325
Salaries payable 2,810
Contracts payable 166,400
Due to other governmental units 386,883
Total liabilities $564,418
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
33
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Edina was incorporated in 1888 and operates under the State of Minnesota Statutory Plan B form
of government. The governing body consists of a five-member City council elected by voters of the City.
The financial statements of the City of Edina have been prepared in conformity with generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of significant accounting policies.
A. FINANCIAL REPORTING ENTITY
In accordance with Governmental Accounting Standards Board (GASB) Statement No. 14, “The
Financial Reporting Entity” the City’s financial reporting entity consists of (a) the primary
government, (b) organizations for which the primary government is financially accountable, and (c)
other organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity’s financial statements to be
misleading or incomplete. The primary government is financially accountable for the component
unit if it appoints a voting majority of the component unit’s governing body and is able to impose
its will on the component unit or there is a potential for the component unit to provide specific
financial benefits to, or impose specific financial burdens on, the primary government.
As required by generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Edina (the primary government) and its component units. The
component units discussed below are included in the City's reporting entity because of the
significance of their operational or financial relationships with the City.
COMPONENT UNITS
In conformity with generally accepted accounting principles, the financial statements of the
component unit has been included in the financial reporting entity as a blended component unit.
The Housing and Redevelopment Authority (HRA) is an entity legally separate from the City.
However, for financial reporting purposes, the HRA is reported as if it were part of the City's
operations because the members of the City Council serve as HRA board members and its activity
is confined to the City of Edina. The activity of the HRA is reported in the Capital Projects Funds.
Separate financial statements are not prepared for the HRA.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information on all of the nonfiduciary activities of the primary
government and its component unit. For the most part, the effect of interfund activity has been
removed from these statements. Governmental activities, which normally are supported by taxes
and intergovernmental revenues, are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
34
The statement of activities demonstrates the degree to which the direct expenses of a given
function or business-type activity are offset by program revenues. Direct expenses are those that
are clearly identifiable with a specific function or business-type activity. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or business-type activity and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function or business type activity. Taxes and other items not included among program revenues
are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
C. MEASUREMENT FOCUS , BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the Proprietary Fund and Fiduciary
Fund financial statements. Revenues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the government considers all revenues, except reimbursement
grants, to be available if they are collected within 60 days of the end of the current fiscal period.
Reimbursement grants are considered available if they are collected within one year of the end of
the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures, as well as expenditures related to claims
and judgments are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as revenue
of the current period. All other revenue items are considered to be measurable and available only
when cash is received by the government.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
35
The government reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The debt service fund accounts for the payment of principal and interest on the General
Obligation Redevelopment, General Obligation Park Improvements and Tax Increment Bonds.
The construction fund accounts for the various special assessment and state aid projects
throughout the City.
The Housing and Redevelopment Authority of Edina fund is used to account for revenues
from several sources (property taxes, bond proceeds, investment earnings, etc.) that are
designated for housing and redevelopment.
The revolving fund was established to provide financing for capital improvements as
designated in the City’s capital improvement budget.
The government reports the following major proprietary funds:
The utility fund accounts for the provision of water, sewer and recycling services to the City’s
residents.
The liquor fund accounts for the operation of the City’s three liquor stores.
The aquatic center fund accounts for the operation of the City’s aquatic center.
The golf course fund accounts for the operation of the City’s three golf courses and a golf
dome.
Additionally, the government reports the following fund types:
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.
Agency - the police seizure and Public Safety Training Facility funds account for fees
collected for other government agencies.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and proprietary-fund financial statements to
the extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private-
sector guidance for their business-type activities and enterprise funds, subject to this same
limitation. The government has elected not to follow subsequent private-sector guidance.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
36
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as
revenues, expenditures or expenses if they involved external organizations, such as buying goods
and services or payments in lieu of taxes, are similarly treated when they involve other funds of the
City of Edina. Elimination of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the utilities, liquor, aquatic center, golf course, arena, art center and
Edinborough Park/Centennial Lake enterprise funds are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for an allowable use, it is the
government’s policy to use restricted resources first, then unrestricted resources as they are
needed.
D. CASH AND INVESTMENTS
The City’s cash and cash equivalents are considered to be cash on hand.
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.
The City provides temporary advances to funds that have insufficient cash balances by means of
an advance from another fund shown as interfund receivables in the advancing fund, and an
interfund payable in the fund with the deficit, until adequate resources are received. These
interfund balances are eliminated on the government-wide financial statements.
The City reports its investments at fair value based on quoted market prices. Changes in fair value
of securities in the City’s investment portfolio are recorded as a net increase in fair value of
investments in the City’s fund financial statements and within general revenues in the government-
wide financial statements.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
37
E. RECEIVABLES AND PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Short-term interfund loans are classified as “due to/from other
funds.” All short-term interfund receivables and payables at December 31, 2003 are planned to be
eliminated in 2004. Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements as “internal
balances.”
Property taxes and special assessments receivables have been reported net of estimated
uncollectible accounts. Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables
and have not been reported.
F. REVENUE RECOGNITION
1. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy/assessment date) of each year for collection in the following 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 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. Personal property
taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are
collected by the County and remitted to the City on or before July 7 and December 2 of the
same year. Delinquent collections for November and December are received the following
January. The City has no ability to enforce payment of property taxes by property
owners. The County possesses this authority.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were levied.
Uncollectible property taxes are not material and have not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
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
and State credits received by the City in July, December and January are recognized as
revenue for the current year. Taxes collected by the County by December 31 (remitted to
the City the following January) and taxes and credits not received at the year end are
classified as delinquent and due from County taxes receivable. The portion of delinquent
taxes not collected by the City in January are fully offset by deferred revenue because
they are not available to finance current expenditures.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
38
2. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the
cost of special assessment improvement projects in accordance with State Statutes.
These assessments are collectible by the City over a term of years usually consistent with
the term of the related bond issue. Collection of annual installments (including interest) is
handled by the County Auditor in the same manner as property taxes. Property owners
are allowed to (and often do) prepay future installments without interest or prepayment
penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien
upon that property until full payment is made or the amount is determined to be excessive
by the City Council or court action. If special assessments are allowed to go delinquent,
the property is subject to tax forfeit sale. Pursuant to State Statutes, a property shall be
subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five
years.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was
adopted by the City Council. Uncollectible special assessments are not material and have
not been reported.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable
and available to finance expenditures of the current fiscal period. In practice, current and
delinquent special assessments received by the City are recognized as revenue for the
current year. Special assessments that are collected by the County by December 31
(remitted to the City the following January) and are also recognized as revenue for the
current year. All remaining delinquent, deferred and special deferred assessments
receivable in governmental funding are completely offset by deferred revenues.
G. INVENTORIES, PREP AID ITEMS AND DEFERRED CHARGES
Inventories of the Proprietary Funds are recorded as expenditures when consumed rather than
when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements.
Deferred charges represent deferred issuance costs.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
39
H. CAPITAL ASSETS
Capital assets, which include property, plant, equipment and parks, are reported in the applicable
governmental or business-type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial, individual cost of more than
$5,000 (amount not rounded) and an estimated useful life in excess of three years. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital
assets are recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Property, plant and equipment of the primary government, as well as the component unit, is
depreciated using the straight line method over the following estimated useful lives:
Assets
Buildings and structures 20 - 40 years
Furniture and office equipment 5 - 10 years
Vehicles and equipment 3 - 20 years
Parks 5 - 100 years
Distribution system 50 years
Collection system 10 - 50 years
Storm sewers 50 years
Wells 7 - 30 years
I. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. All vacation pay is accrued when incurred in the government-wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if they
have matured, for example, as a result of employee resignations and retirements. In accordance
with the provisions of Statement of Governmental Accounting Standards No. 16, Accounting for
Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick
pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits
that is vested as severance pay.
J. LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
40
applicable governmental activities, business-type activities, or proprietary fund type statement of
net assets.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources while discounts on debt issuances are reported as other financing uses.
K. FUND EQUITY
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change.
L. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made
from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Interfund loans are reported as an interfund loan receivable or payable which offsets the movement
of cash between funds. All other interfund transactions are reported as transfers.
M. RESTRICTED ASSETS
Certain assets in the enterprise and capital projects fund revenue bonds and the capital projects
fund General Obligation Equipment Certificates are classified as restricted assets on the statement
of net assets because their use is limited by applicable bond covenants.
N. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting
principles (GAAP) requires management to make estimates that affect amounts reported in the
financial statements during the reporting period. Actual results could differ from such estimates.
O. JOINT VENTURES
The City’s investment in joint venture is reported in the statement of net assets as governmental
activities capital assets and is 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
41
P. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS
The governmental fund balance sheet includes a reconciliation between fund balance – total
governmental funds and net assets – governmental activities as reported in the government-
wide statement of net assets. One element of that reconciliation explains that “long-term
liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.” The details of this ($59,750,983) difference are as follows:
Bonds payable ($56,100,000)
Plus: premium on issuance (59,787)
Less: issuance discount 365,535
Less: deferred charge for issuance costs 169,403
Accrued interest payable (1,076,729)
Capital lease payable (229,585)
Compensated absences (2,819,820)
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities ($59,750,983)
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
42
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
The governmental fund statement of revenues, expenditures, and changes in fund balances
includes a reconciliation between net changes in fund balances – total governmental funds
and changes in net assets of governmental activities as reported in the government-wide
statement of activities. One element of that reconciliation explains that “Governmental funds
report capital outlays as expenditures. However, in the statement of activities the cost of
those assets is allocated over their estimated useful lives and reported as depreciation
expense.” The details of this $12,132,792 difference are as follows:
Capital outlay $1,002,043
Construction/acquisition costs 13,942,449
Depreciation expense (2,811,700)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities $12,132,792
Another element of that reconciliation states that “The net effect of disposals of capital assets
is to decrease net assets.” The details of this ($34,655) difference are as follows:
In the statement of activities, only the gain on the
sale of capital assets is reported. However, in the
governmental funds, the proceeds from the sale
increase financial resources. Thus, the change
in net assets differs from the change in fund
balance by the cost of the capital assets sold. ($27,806)
The statement of activities reports losses arising
from the trade-in or disposal of existing capital
assets to acquire new capital assets. Conversely,
governmental funds do not report any gain or
loss on a trade-in of capital assets. (6,849)
Net adjustment to decrease net changes in fund
Balances - total governmental funds to arrive at
Changes in net assets of governmental activities. ($34,655)
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
43
Another element of that reconciliation states that “Revenues on the Statement of Activities
that do not provide current financial resources are not reported as revenues in the funds.”
The details of this $2,768,385 difference are as follows:
General property taxes deferred revenue ($88,192)
Special Assessment deferred revenue 2,856,577
Net adjustments to increase net changes in fund balances -
total governmental funds to arrive at changes in net
assets of governmental activities $2,768,385
Another element of that reconciliation states that “the issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
long-term debt consumes the current financial resources of governmental funds. Neither
transaction, however, has any effect on net assets.” The details of this $4,238,735 difference
are as follows:
Debt issued or incurred:
Issuance of equipment certificates ($1,540,000)
Issuance of general obligation bonds (6,570,000)
Plus: discounts/premiums (88,794)
Less: issuance costs 54,985
Principal repayments:
General obligation debt 12,225,000
Leases payable 65,417
Interest repayments:
General obligation debt 123,355
Deferred charges (31,228)
Net adjustment to increase net changes in
fund balances - total governmental funds to
arrive at changes in net assets of
governmental activities $4,238,735
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
44
Another element of that reconciliation states that “Some expenses reported in the statement of
activities do not require the use of current financial resources and therefore are not reported as
expenditures in governmental funds.” The details of this ($192,151) difference are as follows:
Compensated absences ($192,151)
Net adjustment to decrease net changes in
fund balances - total governmental funds to
arrive at changes in net assets of
governmental activities ($192,151)
Q. CHANGE IN ACCOUNTING PRINCIPLES
For the year ended December 31, 2003, the City of Edina implemented Governmental Accounting
Standards Board (GASB) Statement No. 34, Basic Financial Statements – and Management’s
Discussion and Analysis – for State and Local Governments, issued June 1999; GASB Statement
No. 37, Basic Financial Statement – and Management’s Discussion and Analysis – for State and
Local Governments: Omnibus, an amendment to GASB Statements No. 21 and No. 34, issued in
June 2001; GASB Statement No. 38, Certain Financial Statement Note Disclosures, issued in 2001,
and; Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures
in Governmental Fund Financial Statements, issued in March 2000. GASB Statement No. 34
creates new basic financial statements for reporting on the City’s financial activities. This report
now includes government-wide financial statements prepared on the accrual basis of accounting,
and fund financial statements which present information for individual major funds rather than by
fund type which has been the mode of presentation in previously issued reports.
The gross cost of capital assets, except for infrastructure assets, and accumulated depreciation
balances at December 31, 2002 were restated to capitalize assets and record accumulated
depreciation in accordance with the adoption of GASB No. 34. The gross cost balances were also
restated to reflect the increase in the capitalization threshold from $2,500 to $5,000.
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
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, 2003, 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
45
Minnesota Statutes require that all City deposits be protected by 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).
Authorized collateral includes the legal investments described below, as well as certain first mortgage
notes, and certain other state or local government obligations. Minnesota Statutes require that
securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution
other than that furnishing the collateral.
Balances at December 31, 2003, including Agency Funds of $239,418, are as follows:
Carrying Bank
Amount Balance
Checking accounts $204,425 1,704,407
Cash on hand 15,265 -
Cash with trustee 237,039 -
$456,729 $1,704,407
INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its ;
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 of the State of Minnesota or any of its municipalities;
d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System;
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less;
f) Guaranteed investment contracts issued or guaranteed by United States commercial banks or
domestic branches of foreign banks or United States insurance companies or their subsidiaries;
g) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York or certain Minnesota securities broker-dealers;
and
h) Futures contracts sold under authority of Minnesota Statutes 471.56, subdivision 5.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
46
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, including Agency Funds of $325,000, at December 31, 2003 were as follows:
Credit Risk Category
Category Category Fair
Securities Type 1 2 Value
Commercial paper $11,480,685 $9,984,701 $21,465,386
Money Market investments 9,188 8,491,720 8,500,908
Government securities:
United States Treasury Notes 229,941 1,295,634 1,525,575
Federal National Mortgage Association 1,823,095 4,161,915 5,985,010
Government National Mortage Association - 244,341 244,341
Federal Home Loan Mortgage Corporation 2,190,029 2,733,011 4,923,040
Federal Home Loan Bank 2,830,667 939,924 3,770,591
Federal Farm Credit - 97,660 97,660
SBA Pool 191,272 936,806 1,128,078
Municipal Bonds - 1,400,000 1,400,000
$18,754,877 30,285,712 49,040,589
Certificates of deposit 858,457
Cash and investments with fiscal agents 3,915
Total investments $49,902,961
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
47
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2003 is as follows:
Beginning
Balance, Ending
As Restated Increases Decrease Balance
Governmental activities:
Capital assets, not being depreciated:
Land $11,849,474 - - $11,849,474
Investment in joint venture 979,658 472,807 - 1,452,465
Construction in progress 12,335,124 12,665,332 (595,184) 24,405,272
Total capital assets, not being depreciated 25,164,256 13,138,139 (595,184) 37,707,211
Capital assets, being depreciated:
Land improvements 28,394,775 17,301 - 28,412,076
Buildings and structures 19,008,698 22,268 - 19,030,966
Furniture and office equipment 588,433 34,852 (6,044) 617,241
Vehicles and equipment 9,158,357 1,699,476 (495,070) 10,362,763
Parks 9,488,570 1,100,447 (16,190) 10,572,827
Total capital assets, being depreciated 66,638,833 2,874,344 (517,304) 68,995,873
Less accumulated depreciation for:
Land improvements 8,904,889 992,557 - 9,897,446
Buildings and structures 6,203,296 510,834 - 6,714,130
Furniture and office equipment 389,545 75,293 (6,044) 458,794
Vehicles and equipment 4,444,140 859,235 (462,843) 4,840,532
Parks 3,946,528 373,781 (13,763) 4,306,546
Total accumulated depreciation 23,888,398 2,811,700 (482,650) 26,217,448
Total capital assets being depreciated - net 42,750,435 62,644 (34,654) 42,778,425
Governmental activities capital assets - net $67,914,691 $13,200,783 ($629,838) $80,485,636
GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for
State and Local Governments permits a phase-in period for reporting major infrastructure assets
retroactively through the City’s fiscal year ending December 31, 2006. The costs of certain infrastructure
asset networks incurred prior to January 1, 2002, primarily streets, sidewalks, traffic signals and street
lighting systems have not been capitalized. Estimated historical cost data for these networks has not yet
been compiled; when this process has been finalized, the City will capitalize retroactively those costs
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
48
associated with each network categorized as major, before the end of the phase-in period. Capital assets as
of January 1, 2003 have been restated in accordance with GASB 34.
Beginning Ending
Balance Increases Decrease Balance
Business-type activities:
Capital assets, not being depreciated:
Land $1,088,965 - - $1,088,965
Construction in progress 1,464,742 2,654,202 (2,625,495) 1,493,449
Total capital assets, not being depreciated 2,553,707 2,654,202 (2,625,495) 2,582,414
Capital assets, being depreciated:
Golf course 4,602,724 12,583 - 4,615,307
Land improvements 2,890,289 359,482 - 3,249,771
Buildings and structures 15,107,970 172,627 - 15,280,597
Furniture & office equipment 79,197 - - 79,197
Vehicles and equipment 3,910,749 619,865 (166,035) 4,364,579
Distribution system 17,710,700 386,910 - 18,097,610
Collection system 13,879,197 941,788 (393,961) 14,427,024
Storm sewers 12,114,449 414,493 - 12,528,942
Wells 1,409,279 554,712 - 1,963,991
Lease property capital lease 468,580 - - 468,580
Total capital assets, being depreciated 72,173,134 3,462,460 (559,996) 75,075,698
Less accumulated depreciation for:
Golf course 1,254,195 145,091 - 1,399,286
Land improvements 1,244,614 227,415 - 1,472,029
Buildings and structures 6,268,008 569,440 - 6,837,448
Furniture and office equipment 39,749 9,659 - 49,408
Vehicles and equipment 2,032,922 308,188 (145,735) 2,195,375
Distribution system 9,843,419 509,546 (151,583) 10,201,382
Collection system 4,484,406 135,479 (58,577) 4,561,308
Storm sewers 4,973,836 239,368 - 5,213,204
Wells 951,482 48,007 - 999,489
Lease property capital lease 421,722 31,267 - 452,989
Total accumulated depreciation 31,514,353 2,223,460 (355,895) 33,381,918
Total capital assets being depreciated - net 40,658,781 1,239,000 (204,101) 41,693,680
Business-type activities capital assets - net $43,212,488 $3,893,202 ($2,829,596) $44,276,094
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
49
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $73,427
Public safety 381,282
Public works 880,012
Parks 1,476,979
Total depreciation expense - governmental activities $2,811,700
Business-type activities:
Art Center $30,633
Aquatic Center 183,742
Golf Course $468,382
Arena $324,802
Edinborough Park/Centennial Lakes 113,334
Liquor 72,709
Utility 1,029,858
Total depreciation expense - business-type activities $2,223,460
CONSTRUCTION COMMITMENTS
At December 31, 2003, the City had construction project contracts in progress. The commitments related to
the remaining contract balances are summarized as follows:
Contract Remaining
Project # Project Amount Commitment
03-1 ENG Sidewalk Construction & Mill & Overlay $296,205 $16,171
00-2 PW Pamela Park Storm Sewer 458,078 22,565
03-6 ENG Pond Dredging and Paving 329,960 314,960
03-10 PW Water Treatment Plant 2 Upgrade 1,549,023 1,172,481
03-08 PW SCADA Hardware 1,404,491 1,355,900
Various City Hall Construction 12,443,799 1,173,172
Total $4,055,249
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
50
Note 4 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:
Edinborough
Asset Golf Course Arena Park
Machinery and equipment $37,966 341,698 88,916
Less: Accumulated
depreciation (36,703) (330,329) (85,958)
Total $1,263 11,369 2,958
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, 2003:
Year ending December 31:
2004 $35,971
Total minimum lease payments 35,971
Less: Amount representing interest (971)
Present value of net minimum lease payments $35,000
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.
T he asset acquired through this capital lease is as follows:
Governmental
Asset Activities
Building $630,749
Less: Accumulated depreciation (204,973)
Total $425,776
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, 2003:
Year ending December 31:
2004 $83,761
2005 83,761
2006 83,761
Total minimum lease payments 251,282
Less: Amount representing interest (21,697)
Present value of net minimum lease payments $229,585
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
51
Note 5 LONG-TERM DEBT
The City has four types of bonded debt outstanding at December 31, 2003: 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 reporting entity’s long-term
debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid
from business-type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2003, the governmental long-term bonded debt of the financial reporting entity
consisted of the following:
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/03
Tax Increment Bonds:
Tax Increment Refunding Taxable Bonds, Series
1996A 5.85 - 6.25 03/01/96 02/01/09
$11,250,00
$7,975,000
Tax Increment Bonds, Series 1997B 4.50 - 5.20 04/01/97 02/01/13 5,090,000 4,340,000
Tax Increment Bonds, Series 2000A 4.30 - 4.80 09/06/00 02/01/11 2,620,000 2,190,000
Tax Increment Bonds, Series 2000C 4.50 - 4.65 09/06/00 02/01/03 15,820,000 13,425,000
Tax Increment Bonds, Series 2002B 3.00% 08/05/02 02/01/09 1,400,000 1,400,000
Tax Increment Taxable Refunding Bonds of 2003B 1.128 - 1.749 03/01/03 02/01/06 6,570,000 6,570,000
Total Tax Increment Bonds 42,750,000 35,900,000
General Obligation Bonds:
General Obligation - Park & Recreation, Series
1996B 4.25 - 5.75 08/01/96 02/01/17 8,090,000 6,625,000
General Obligation Equipment Certificates, Series
2003A 1.05 - 2.40 03/01/03 02/01/08 1,540,000 1,540,000
Total General Obligation Bonds 9,630,000 8,165,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2002 4.00 - 5.25 01/01/02 02/01/21 12,410,000 12,035,000
Total Public Project Revenue Bonds 12,410,000 12,035,000
Total - Bonded indebtedness
$64,790,00
$56,100,00
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
52
BUSINESS-TYPE ACTIVITIES
Final
Interest Maturity Original Payable
Rates Date Date Issue 12/31/03
Revenue Bonds:
Recreational Facility Bonds, Series 1999B 3.70 - 4.45 05/03/99 01/01/13 $3,270,000 $3,050,000
Recreational Facility Bonds, Series 2001A 2.25 - 4.65 11/01/01 01/01/17 4,620,000 4,095,000
Utility Revenue Bonds, Series 1999A 3.20 - 4.20 05/03/99 02/01/09 3,600,000 2,295,000
Utility Revenue Bonds, Series 2003C 1.10 - 3.55 03/01/03 02/01/13 3,200,000 3,200,000
Total Revenue Bonds 14,690,000 12,640,000
Total - Bonded indebtedness
$14,690,00
$12,640,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Tax Increment General Obligation Bonds
Public Project Revenue
Bonds Revenue Bonds
Year Ending Governmental Activities Governmental Activities Governmental Activities Business-type Activities
December
Principal Interest Principal Interest Principal Interest Principal Interest
2004 $5,140,000 $1,520,376 $870,000 $380,575 $440,000 $577,636 $1,455,000 $418,527
2005 5,465,000 1,327,982 905,000 352,862 460,000 558,287 1,495,000 375,900
2006 4,990,000 1,124,578 520,000 327,549 480,000 537,337 1,545,000 328,867
2007 4,655,000 901,483 520,000 305,337 505,000 515,174 1,595,000 276,999
2008 5,585,000 638,940 550,000 281,737 525,000 491,999 1,560,000 221,821
2009 –
10,065,000 714,775 2,375,000 1,035,939 3,015,000 2,068,463 4,655,000 470,320
2014 –
- - 2,425,000 287,495 3,815,000 1,234,380 335,000 31,377
2019 - 2021 - - - - 2,795,000 224,541 - -
$35,900,000 $6,228,134 $8,165,000 $2,971,494
$12,035,00
$6,207,817
$12,640,00
$2,123,811
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
53
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2003, was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment bonds
$40,855,00
$6,570,00
($11,525,000
)
$35,900,00
$5,140,000
General obligation bonds 6,950,000 1,540,000 (325,000) 8,165,000 870,000
Public project revenue bonds 12,410,000 - (375,000) 12,035,000 440,000
Less deferred amounts:
Discount on bonds (453,515) - 87,980 (365,535) -
Premiums - 88,795 (29,008) 59,787 -
Total bonds payable 59,761,485 8,198,795 (12,166,028) 55,794,252 6,450,000
Capital lease 295,002 - (65,417) 229,585 72,908
Compensated absences 2,627,669 192,151 - 2,819,820 75,000
Total government activity long-term
liabilities
$62,684,15
$8,390,94
($12,231,445
)
$58,843,65
$6,597,908
Business-type activities
Revenue bonds
$10,520,00
$3,200,00
($1,080,000)
$12,640,00
$1,455,000
Less deferred amounts:
Discount on bonds (58,256) (12,960) 9,193 (62,023) -
Total bonds payable 10,461,744 3,187,040 (1,070,807) 12,577,977 1,455,000
Capital lease 95,000 - (60,000) 35,000 35,000
Compensated absences 687,044 27,652 - 714,696 44,200
Total business-type activity long-term
liabilities
$11,243,78
$3,214,69
($1,130,807)
$13,327,67
$1,534,200
During 2003, the City issued $1,540,000 G.O. Equipment Certificates of Indebtedness, Series 2003A to
fund various equipment purchases for the public works, parks and fire departments.
During 2003, the City issued $6,570,000 G.O. Tax Increment Refunding Bonds, Series 2003B with a true
interest rate of 1.53% to refund the 2004 through 2006 maturities aggregating $6,525,000 in principal
amount of the City’s G.O. Tax Increment Series 19993A with a true interest rate of 5.33%, dated May 1,
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
54
1993. The net proceeds of $6,608,194 were used to retire all outstanding principal of the refunded bonds
on May 1, 2003. The City refunded the tax increment bonds to reduce its total debt service payments
over the next three years by $332,283 and to obtain an economic gain of $332,236.
During 2003, the City issued $3,200,000 G.O. Water and Sewer Revenue Bonds, Series 2003C to fund
capital improvements to the water and sewer system.
Activity for compensated absences is shown net, as it is impractical to determine separate increases
and decreases. Compensated absences are generally liquidated by the general fund.
Note 6 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable
principally from property taxes. The City of Edina's legal debt margin for 2003 is computed as follows:
December 31,
2003
Market Value (after fiscal disparities) $6,909,476,700
Debt Limit (2% of Market Value) $138,189,534
Amount of debt applicable to debt limit:
Total bonded debt $68,740,000
Less: Tax increment bonds (35,900,000)
Public project revenue bonds (12,035,000)
Revenue bonds (12,640,000)
Cash and investments in related Debt Service Funds (2,162,297)
Total debt applicable to debt limit $6,002,703
Legal debt margin $132,186,831
Note 7 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. 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
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
55
Fire Fund (PEPFF) which are cost-sharing, multiple-employer retirement plans. These plans are
established and administered in accordance with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members
are covered by Social Security and Basic Plan members are not. All new members must participate
in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for
membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest after
three years of credited service. The defined retirement benefits are based on a member’s highest
average salary for any five successive years of allowable service, age, and years of credit at
termination of service.
Two methods are used to compute benefits for PERF’s Coordinated and Basic Plan members. The
retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level
accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is
2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year.
The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the
first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7%
of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of
service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For all
PEPFF and PERF members fired prior to July 1, 1989 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 Basic and 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.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling (651)296-7460 or 1-800-652-9026.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
56
B. FUNDING POLICY
Minnesota Statutes 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 Basic Plan
members and Coordinated Plan members are required to contribute 9.10% and 5.10%, respectively,
of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual
covered salary. The City of Edina is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members, 5.53% for Coordinated Plan PERF members,
and 9.30% for PEPFF members. The City’s contributions to the Public Employees Retirement Fund
for the years ending December 31, 2003, 2002 and 2001 were $850,338, $1,050,598 and $972,425,
respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years
ending December 31, 2003, 2002 and 2001 were $324,460, $485,138 and $455,461, respectively. The
City’s contributions were equal to the contractually required contributions for each year as set by
state statute.
C. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED CONTRIBUTION
PLAN DESCRIPTION
Two council members of the City of Edina are covered by the Public Employees Defined
Contribution Plan (PEDCP), a multiple-employer deferred compensation plan administered by the
Public Employees Retirement Association of Minnesota (PERA). The PEDCP is a tax qualified plan
under Section 401(a) of the Internal Revenue Code and all contributions by or on behald of
employees are tax deferred until time of withdrawal.
Plan benefits depend solely on amounts contributed to the plan plus investment earnings, less
administrative expenses. Minnesota Statutes, Chapter 353D.03, specifies the employee and
employer contribution rates for those qualified personnel who elect to participate. An eligible
elected official who decides to participate contributes 5 percent of salary which is matched by the
elected official's employer. For ambulance service personnel, employer contributions are
determined by the employer, and for salaried employees must be a fixed percentage of salary.
Employer contributions for volunteer personnel may be a unit value for each call or period of alert
duty. Employees who are paid for their services may elect to make member contributions in an
amount not to exceed the employer share. Employer and employee contributions are combined and
used to purchase shares in one or more of the seven accounts of the Minnesota Supplemental
Investment Fund. For administering the plan, PERA receives 2 percent of employer contributions
and four-tenths of one percent of the assets in each member's account annually.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
57
Total contributions made by the City during fiscal year 2003 were:
Percentage of
Amount Covered Payroll Required
Employees Employer Employees Employer Rates
PEDCP $510 $510 5.00% 5.00% 5.00%
Note 8 INTERFUND RECEIVABLES/PAYABLES, AND TRANSFERS
Individual fund interfund receivable and payable balances at December 31, 2003 are as follows:
Fund Receivable Payable
General Fund $137,444 $282,777
Community Development Block Grant - 53,023
Communications Fund 18,843 -
General Debt Service 495,927 -
City Hall Debt Service 482,389 -
Construction Fund - 4,049,694
HRA Fund - 137,444
Revolving Fund 1,730,542 -
Utilities Fund 454,490 -
Liquor Fund 692,955 -
Aquatic Center Fund 583,785 -
Golf Course Fund - 32,084
Arena Fund 790 -
Art Center Fund 501 -
Edinborough/Centennial Lake Fund - 42,644
Totals $4,597,666 $4,597,666
The City’s interfund receivables and payables eliminate what would have been a negative cash balance.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
58
Interfund transfers; Transfer In
Nonmajor business type Total
Edinborough Nonmajor
Debt Service Revolving Art Center Arena Centennial Lake Funds Total
Transfer out:
Major funds
General Fund - $95,350 - - $4,645,868 $4,645,868 $4,741,218
HRA Fund 6,822,776 - - - - - 6,822,776
Revolving Fund - - 8,587 6,149 277,201 291,937 291,937
Golf Course Fund - - - 8,000 - 8,000 8,000
Liquor Fund - 784,000 111,000 - - 111,000 895,000
Utility Fund - 100,000 - - - - 100,000
Total major funds 6,822,776 979,350 119,587 14,149 4,923,069 5,056,805 12,858,931
Nonmajor governmental
fund
Communications Fund - 950,000 - - - - 950,000
Total transfers $6,822,776 $1,929,350 $119,587 $14,149 $4,923,069 $5,056,805 $13,808,931
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
services provided by another fund. Most of the City’s interfund transfers fall under that category. Non-
routine transfers include the following:
1. A one time transfer of $4,645,868 from the General Fund to Edinborough/Centennial Lake was made
to put the Designated Edinborough Trust into the fund the trust is intended to support.
2. Transfers of $95,350, $950,000 and $684,000 were made from the General Fund, Communications
Fund and the Liquor Fund respectively. These transfers were made to fund ongoing capital
improvement projects.
Note 9 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
Districts number 1200 (50th and France Commercial Area) is a redevelopment district established in 1974
pursuant to Minnesota Statutes with a termination date of 2009.
District number 1201 (Southeast Edina Redevelopment District – Edinborough) is a redevelopment district
established in 1977 pursuant to Minnesota Statutes with a termination date of 2009.
District number 1202 (Grandview Commercial Area) is a redevelopment district established in 1984 pursuant
to Minnesota Statutes with a termination date of 2010.
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a redevelopment
district established in 1988 pursuant to Minnesota Statutes with a termination date of 2016.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
59
District number 1207 (70th and Cahill Economic Development District) is an economic district established in
1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment previously collected is
available for expenditures within the larger development district that includes the Wooddale – Valley View
commercial area. Tax capacity and debt for this district is not included in the following schedule as county
reports no longer indicate captured tax capacity for this district and no debt is outstanding.
The following table reflects values as of December 31, 2003:
TIF #1200 TIF #1201 TIF #1202 TIF #1203 Total
Original tax capacity $112,826 $101,328 $166,603 $229,691 $610,448
Current tax capacity 962,498 2,681,781 918,856 2,956,644 7,519,779
Tax capacity change 849,672 2,580,453 752,253 2,726,953 8,130,227
Captured tax capacity value:
Retained captured tax capacity $849,672 $2,580,453 $752,253 $2,726,953 $8,130,227
Total bonds issued (general obligation) $5,360,000 $22,445,000 $9,637,555 $35,744,724 $73,187,279
Amounts redeemed 3,700,000 17,535,000 6,047,555 10,004,724 37,287,279
Outstanding bonds at December 31, 2003 $1,660,000 $4,910,000 $3,590,000 $25,740,000 $35,900,000
Note 10 DEFICIT FUND BALANCES
The City has a deficit fund balance at December 31, 2003 as follows:
Major Fund Amount
Capital Project Funds:
Construction $4,023,110
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.
Note 11 CONTINGENCIES
A. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
60
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 $76,571,404.
Police professional insurance coverage is provided by an insurance company. The City pays an
annual premium for this coverage, and has a $10,000 deductible per occurrence, with a $500,000
annual maximum.
Inland Marine contractor’s equipment insurance coverage is provided by an insurance company.
The City pays an annual premium for this coverage, and has a $1,000 deductible and $100,000
maximum per occurrence, with a $1,975,000 annual maximum.
Boiler and machinery insurance coverage is provided by an insurance company. The City pays an
annual premium for this coverage, and has a $2,500 deductible per occurrence, with a $1,000,000
annual maximum.
Ambulance professional liability insurance coverage is provided by an insurance company. The
City pays an annual premium for this coverage, and a $500,000 annual maximum.
A public employee’s blanket bond and a public official bond are provided by an insurance
company. The City pays an annual premium for this coverage, and is subject to limits of $500 to
$50,00 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 our insurance
policies. The City has designated $925,765 in the general fund to finance potential uninsured loss.
Settlement claims have not exceeded insurance coverage for each of the past three years.
B. LITIGATION
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; of an immaterial amount; or, in the
judgment of the City attorney, remotely recoverable by plaintiffs.
C. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance
with the terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, any such disallowed claims will not have
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
61
a material effect on any of the financial statements of the individual fund types included herein or
on the overall financial position of the City at December 31, 2003.
D. TAX INCREMENT DIS TRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of the
State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of
the applicable fund. Management is not aware of any instances of noncompliance which would
have a material effect on the financial statements.
Note 12 CONDUIT DEBT OBLIGATION
As of December 31, 2003, the City of Edina had 3 series of Housing and Health Care Revenue Bonds, with an
aggregate principal amount payable of $30,375,000. 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.
Note 13 JOINT VENTURE
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. The City’s net investment is reported in the governmental activities capital assets. The
City’s equity interest in the PSTF was $1,452,465. Complete financial statements for PSTF can be obtained
from the City of Edina, 4801 West 50th Street, Edina, MN 55424.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2003
62
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2003 the City had designated and reserved portions of its various fund equities through
legal restriction and City Council authorization. A summary of such designations is as follows:
December 31,
2003
Major governmental funds:
General Fund:
Reserved for prepaid items $412,992
Designated for parkland dedication 27,144
Designated for unrealized investment gains/losses 8,316
Designated for commitments 2,407,804
Designated for insurance/severance 925,765
Designated for cash flow 6,592,044
Debt Service Funds:
Reserved for debt service 2,176,729
Construction Fund:
Reserved for encumbrances 412,267
Revolving Fund:
Reserved for encumbrances 322,819
Reserved for special projects 1,173,172
Designated for capital improvements 10,824,283
Total major governmental funds $25,283,335
Major proprietary funds:
Utility Fund:
Reserved for debt service $1,672,828
Totals $26,956,163
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Revenues:
General property taxes:
Current $16,071,875 $16,071,875 $15,607,503 ($464,372)
Penalties and interest 5,000 5,000 22,504 17,504
Total general property taxes 16,076,875 16,076,875 15,630,007 (446,868)
Licenses and permits:2,005,925 2,005,925 2,182,263 176,338
Intergovernmental:
Federal:8,600 8,600 315,516 306,916
State:
Municipal state aid 195,000 195,000 195,000 -
Other - - 214,766 214,766
State aid - police 300,000 300,000 320,482 20,482
County:
Health programs 160,000 160,000 36,222 (123,778)
Total intergovernmental 663,600 663,600 1,081,986 418,386
Charges for services:
Building Department 2,700 2,700 1,456 (1,244)
City Clerk 150 150 11,163 11,013
Fire Department 20,500 20,500 26,071 5,571
Ambulance fees 966,000 966,000 1,065,176 99,176
Police Department 161,300 161,300 145,914 (15,386)
Engineering 110,425 110,425 127,094 16,669
Health Department 6,000 6,000 5,325 (675)
Planning Department 24,000 24,000 29,235 5,235
Surcharge - - 2,641 2,641
Housing Foundation Contract 29,000 29,000 24,988 (4,012)
HRA Services 20,000 20,000 22,196 2,196
Assessing Searches 1,500 1,500 558 (942)
Park Registration 134,000 134,000 81,778 (52,222)
Senior Center 74,200 74,200 102,148 27,948
Other fees 8,500 8,500 4,686 (3,814)
50th & France Assessment 17,124 17,124 17,124 -
Charges to other funds 172,320 172,320 172,320 -
Total charges for services 1,747,719 1,747,719 1,839,873 92,154
Fines and forfeits $900,000 $900,000 $785,227 ($114,773)
Miscellaneous:
Sale and rental of property 173,000 173,000 353,298 180,298
Investment income 120,000 120,000 (156,753)(276,753)
Donations - - 5,026 5,026
Other 8,000 8,000 5,021 (2,979)
Total miscellaneous 301,000 301,000 206,592 (94,408)
Total revenues 21,695,119 21,695,119 21,725,948 30,829
Budgeted Amounts
63
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures:
General government:
Mayor and Council:
Current:
Personal services 31,144 31,144 30,654 490
Contractual services 4,100 4,100 7,091 (2,991)
Commodities 1,000 1,000 189 811
Central services 39,168 39,168 39,083 85
Total mayor and council 75,412 75,412 77,017 (1,605)
Administration:
Current:
Personal services 707,853 707,853 697,422 10,431
Contractual services 142,300 142,300 127,620 14,680
Commodities 2,400 2,400 1,166 1,234
Central services 65,616 65,616 62,210 3,406
Total current 918,169 918,169 888,418 29,751
Capital outlay 5,821 5,821 - 5,821
Total administration 923,990 923,990 888,418 35,572
Planning:
Current:
Personal services 297,710 297,710 292,038 5,672
Contractual services 35,420 35,420 13,301 22,119
Commodities 1,215 1,215 876 339
Central services 33,300 33,300 31,450 1,850
Total current 367,645 367,645 337,665 29,980
Capital outlay 5,035 5,035 - 5,035
Total planning 372,680 372,680 337,665 35,015
Finance:
Current:
Personal services 398,780 398,780 409,555 (10,775)
Contractual services 101,700 101,700 92,164 9,536
Commodities 2,100 2,100 588 1,512
Central services 38,280 38,280 36,324 1,956
Total current 540,860 540,860 538,631 2,229
Capital outlay 5,820 5,820 - 5,820
Total finance 546,680 546,680 538,631 8,049
Election:
Current:
Personal services 81,241 81,241 24,082 57,159
Contractual services 12,470 12,470 - 12,470
Commodities 5,126 5,126 - 5,126
Central services 7,728 7,728 7,664 64
Total current 106,565 106,565 31,746 74,819
Capital outlay 11,193 11,193 - 11,193
Total election 117,758 117,758 31,746 86,012
Budgeted Amounts
64
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Assessing:
Current:
Personal services $525,707 $525,707 $421,840 $103,867
Contractual services 107,046 107,046 82,994 24,052
Commodities 1,918 1,918 5,448 (3,530)
Central services 55,068 55,068 52,582 2,486
Total current 689,739 689,739 562,864 126,875
Capital outlay 15,305 15,305 - 15,305
Total assessing 705,044 705,044 562,864 142,180
Legal and court services:
Current:
Contractual services 408,500 408,500 305,215 103,285
Total legal and court services 408,500 408,500 305,215 103,285
Contingencies:
Current:
Personal services - - 133,110 (133,110)
Contractual services 95,000 95,000 105,735 (10,735)
Commodities - - 5,862 (5,862)
Total contingencies 95,000 95,000 244,707 (149,707)
Capital plan appropriation:
Current:
Contractual services 50,000 50,000 50,000 -
Total capital plan appropriation 50,000 50,000 50,000 -
City's share of special assessment:
Current:
Contractual services 42,000 42,000 28,188 13,812
Total City's share of special assessment 42,000 42,000 28,188 13,812
Human Rights Commission:
Current:
Contractual services 80,079 80,079 80,598 (519)
Total Human Rights Commission 80,079 80,079 80,598 (519)
Suburban Rate Authority:
Current:
Contractual services 3,000 3,000 3,000 -
Total Suburban Rate Authority 3,000 3,000 3,000 -
Familink
Current:
Contractual services 32,400 32,400 32,400 -
Total Familink 32,400 32,400 32,400 -
Regional Planning Commission:
Current:
Contractual services 22,074 22,074 - 22,074
Total Regional Planning Commission 22,074 22,074 - 22,074
Budgeted Amounts
65
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Records management:
Current:
Personal services - - 917 (917)
Contractual services 36,600 36,600 29,355 7,245
Total records management 36,600 36,600 30,272 6,328
Employee programs
Current:
Personal services 115,720 115,720 123,400 (7,680)
Contractual services 11,004 11,004 8,908 2,096
Total employee programs 126,724 126,724 132,308 (5,584)
Dial-a-Ride:
Current:
Personal services
Contractual services 24,000 24,000 20,268 3,732
Total employee programs 24,000 24,000 20,268 3,732
Total general government 3,661,941 3,661,941 3,363,297 298,644
Public safety:
Police protection:
Current:
Personal services $4,754,388 $4,754,388 $4,620,252 $134,136
Contractual services 310,074 310,074 258,178 51,896
Commodities 68,622 68,622 84,056 (15,434)
Central services 676,176 676,176 601,575 74,601
Total current 5,809,260 5,809,260 5,564,061 245,199
Capital outlay 272,345 272,345 185,587 86,758
Total police protection 6,081,605 6,081,605 5,749,648 331,957
Fire protection:
Current:
Personal services 2,754,883 2,754,883 2,768,979 (14,096)
Contractual services 216,220 216,220 266,048 (49,828)
Commodities 130,050 130,050 221,821 (91,771)
Central services 277,176 277,176 211,474 65,702
Total current 3,378,329 3,378,329 3,468,322 (89,993)
Capital outlay 43,935 43,935 282,785 (238,850)
Total fire protection 3,422,264 3,422,264 3,751,107 (328,843)
Civil defense:
Current:
Personal services 25,939 25,939 26,700 (761)
Contractual services 8,776 8,776 5,360 3,416
Commodities 1,309 1,309 26 1,283
Central services 8,102 8,102 - 8,102
Total civil defense 44,126 44,126 32,086 12,040
66
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Animal Control:
Current:
Personal services 54,439 54,439 25,772 28,667
Contractual services 7,698 7,698 6,845 853
Commodities 3,745 3,745 175 3,570
Central services 8,112 8,112 7,791 321
Total current 73,994 73,994 40,583 33,411
Capital outlay 6,695 6,695 - 6,695
Total animal control 80,689 80,689 40,583 40,106
Public health
Current:
Personal services 232,110 232,110 222,515 9,595
Contractual services 212,828 212,828 173,675 39,153
Commodities 2,650 2,650 807 1,843
Central services 26,604 26,604 25,204 1,400
Total current 474,192 474,192 422,201 51,991
Capital outlay 11,629 11,629 - 11,629
Total public health 485,821 485,821 422,201 63,620
Inspections:
Current:
Personal services 508,853 508,853 502,360 6,493
Contractual services 70,979 70,979 90,039 (19,060)
Commodities 5,164 5,164 4,966 198
Central services 65,556 65,556 62,651 2,905
Total current 650,552 650,552 660,016 (9,464)
Capital outlay 15,002 15,002 5,750 9,252
Total inspections 665,554 665,554 665,766 (212)
Fire station debt service:
Current:
Contractual services 84,000 84,000 83,760 240
Total fire station debt service 84,000 84,000 83,760 240
Total public safety 10,864,059 10,864,059 10,745,151 118,908
Public works:
Administration:
Current:
Personal services 139,800 139,800 135,866 3,934
Contractual services 5,900 5,900 4,252 1,648
Commodities - - 2 (2)
Central services 17,124 17,124 16,277 847
Total administration 162,824 162,824 156,397 6,427
67
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Engineering:
Current:
Personal services 437,301 437,301 420,340 16,961
Contractual services 71,850 71,850 57,129 14,721
Commodities 13,900 13,900 20,425 (6,525)
Central services 59,160 59,160 57,140 2,020
Total current 582,211 582,211 555,034 27,177
Capital outlay 51,250 51,250 53,833 (2,583)
Total engineering 633,461 633,461 608,867 24,594
Supervision and overhead:
Current:
Personal services $557,450 $557,450 $210,677 $346,773
Contractual services 37,100 37,100 29,464 7,636
Commodities 1,000 1,000 594 406
Central services 210,852 210,852 213,215 (2,363)
Total supervision and overhead 806,402 806,402 453,950 352,452
Street maintenance:
Current:
Personal services 1,133,300 1,133,300 1,329,073 (195,773)
Contractual services 633,500 633,500 514,744 118,756
Commodities 626,750 626,750 528,776 97,974
Central services 511,392 511,392 511,392 -
Total current 2,904,942 2,904,942 2,883,985 20,957
Capital outlay 280,916 280,916 373,893 (92,977)
Total street maintenance 3,185,858 3,185,858 3,257,878 (72,020)
Total public works 4,788,545 4,788,545 4,477,092 311,453
Parks:
Administration:
Current:
Personal services 540,729 540,729 523,695 17,034
Contractual services 29,482 29,482 25,362 4,120
Commodities 20,287 20,287 14,574 5,713
Central services 61,692 61,692 57,568 4,124
Total current 652,190 652,190 621,199 30,991
Capital outlay 4,614 4,614 - 4,614
Total administration 656,804 656,804 621,199 35,605
Recreation:
Current:
Personal services 125,731 125,731 155,187 (29,456)
Contractual services 132,757 132,757 107,800 24,957
Commodities 37,106 37,106 46,719 (9,613)
Total recreation 295,594 295,594 309,706 (14,112)
68
Budgeted Amounts
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 7 of 7
For The Year Ended December 31, 2003
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)
Expenditures (continued):
Maintenance:
Current:
Personal services 1,191,343 1,191,343 1,138,878 52,465
Contractual services 304,017 304,017 270,891 33,126
Commodities 157,592 157,592 139,446 18,146
Central services 271,980 271,980 255,348 16,632
Total current 1,924,932 1,924,932 1,804,563 120,369
Capital outlay 31,644 31,644 15,688 15,956
Total maintenance 1,956,576 1,956,576 1,820,251 136,325
Fireworks:
Current:
Commodities 12,600 12,600 12,400 200
Total fireworks 12,600 12,600 12,400 200
Deer control:
Current:
Contractual services 9,000 9,000 4,634 4,366
Total deer control 9,000 9,000 4,634 4,366
Total parks 2,930,574 2,930,574 2,768,190 162,384
Total expenditures 22,245,119 22,245,119 21,353,730 891,389
Revenues over (under) expenditures (550,000)(550,000)372,218 (860,560)
Other financing sources (uses):
Transfer from Enterprise Funds 550,000 550,000 - -
Transfer to Capital Projects Funds - - (95,350) -
Transfer to Enterprise Funds - - (4,645,868)(4,645,868)
Total financing sources (uses)550,000 550,000 (4,741,218)(4,645,868)
Net decrease in fund balance - - ($4,369,000)($5,506,428)
Fund balance - January 1 14,743,065
Fund balance - December 31 $10,374,065
69
Budgeted Amounts
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2003
70
Note A LEGAL COMPLIANCE – BUDGETS
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).
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.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2003
71
Note B EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund. The following is a listing of General Fund departments whose expenditures exceed budget
appropriations.
Final Over
Budget Actual Budget
Major Funds:
General Fund:
General Government:
Mayor and Council $75,412 $77,017 $1,605
Contingencies 95,000 244,707 149,707
Human Rights Commission 80,079 80,598 519
Employee Programs 126,724 132,308 5,584
Public Safety:
Fire protection 3,422,264 3,751,107 328,843
Inspections 665,554 665,766 212
Parks:
Recreation 295,594 309,706 14,112
COMBINING AND INDIVIDUAL NON MAJOR FINANCIAL
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
A Special Revenue Fund is used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
Community Development Block Grant Fund - This fund was established to account for funds received
under Title I of the Housing and Community Development Act of 1974.
Communications Fund - This fund was established to account for funds received from the franchise
fee of the local cable television service.
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET Statement 11
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2003
Community Total
Development Nonmajor
Assets Block Grant Communication Special Revenue
Investments - $594,735 $594,735
Accounts receivable - 104,672 104,672
Accrued interest receivable - 5,321 5,321
Due from other funds - 18,843 18,843
Due from other governments 154,233 - 154,233
Total assets $154,233 $723,571 $877,804
Liabilities and Fund Balance
Liabilities:
Accounts payable $858 $32,331 $33,189
Salaries payable 332 3,711 4,043
Due to other funds 53,023 - 53,023
Due to other governments 100,020 32 100,052
Deferred revenue - 720 720
Total liabilities 154,233 36,794 191,027
Fund balance:
Unreserved:
Undesignated - 686,777 686,777
Total fund balance - 686,777 686,777
Total liabilities and fund balance $154,233 $723,571 $877,804
72
CITY OF EDINA, MINNESOTA Statement 12
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2003
Community Total
Development Nonmajor
Revenues:Block Grant Communication Special Revenue
Franchise fees $ - $393,627 $393,627
Intergovernmental 218,690 - 218,690
Investment income - 16,573 16,573
Other - 18,390 18,390
Total revenues 218,690 428,590 647,280
Expenditures:
Current:
General government 218,690 381,331 600,021
Total expenditures 218,690 381,331 600,021
Revenues over expenditures - 47,259 47,259
Other financing uses:
Transfer to Capital Project Funds - (950,000)(950,000)
Total financing uses - (950,000)(950,000)
Net decrease in fund balance - (902,741)(902,741)
Fund balance - January 1 - 1,589,518 1,589,518
Fund balance - December 31 - $686,777 $686,777
73
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT Statement 13
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2003
Actual
Original Final Amounts
Revenues:
Intergovernmental $175,942 $175,942 $218,690
Total revenues 175,942 175,942 218,690
Expenditures:
Current:
General government 175,942 175,942 218,690
Net increase (decrease) in fund balance - - -
Fund balance - January 1 -
Fund balance - December 31 -
Budgeted Amounts
74
NONMAJOR PROPRIETARY FUNDS
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. The following are nonmajor
Enterprise Funds:
Arena
Art Center
Edinborough Park/Centennial Lake
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET Statement 14
NONMAJOR PROPRIETARY FUNDS
December 31, 2003
Total
Art Edinborough Park Nonmajor
Assets Arena Center Centennial Lake Proprietary Funds
Current assets:
Cash and cash equivalents $700 $725 $1,700 $3,125
Cash with fiscal agents 2,819 - 783 3,602
Investments - - 4,717,721 4,717,721
Accounts receivable:
Accounts 120,845 - 12,924 133,769
Interest - - 42,209 42,209
Net accounts receivable 120,845 - 55,133 175,978
Due from other funds 790 501 - 1,291
Inventory - 17,862 - 17,862
Deferred charges 5,997 - - 5,997
Net current assets 131,151 19,088 4,775,337 4,925,576
Noncurrent assets:
Net capital assets 3,789,010 336,330 706,416 4,831,756
Total noncurrent assets 3,789,010 336,330 706,416 4,831,756
Total assets 3,920,161 355,418 5,481,753 9,757,332
Liabilities:
Current liabilities:
Accounts payable 23,700 17,225 28,846 69,771
Salaries payable 26,634 10,335 35,648 72,617
Accrued interest payable 16,470 - - 16,470
Due to other funds - - 42,644 42,644
Due to other governments 647 1,810 4,082 6,539
Compensated absences payable 7,537 4,430 7,801 19,768
Deferred revenue - 1,450 64,488 65,938
Bonds payable 180,000 - - 180,000
Capital lease payable 25,200 - 7,000 32,200
Total current liabilities 280,188 35,250 190,509 505,947
Noncurrent liabilities:
Bonds payable, net 1,034,769 - - 1,034,769
Compensated absences 83,513 39,264 93,702 216,479
Total noncurrent liabilities 1,118,282 39,264 93,702 1,251,248
Total liabilities 1,398,470 74,514 284,211 1,757,195
Net assets:
Invested in capital assets, net of related debt 2,543,044 336,330 699,416 3,578,790
Unrestricted (21,353)(55,426)4,498,126 4,421,347
Total net assets $2,521,691 $280,904 $5,197,542 $8,000,137
75
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 15
AND CHANGES IN NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2003
Total
Edinborough Park Nonmajor
Arena Art Center Centennial Lake Proprietary Funds
Operating revenues:
Sales - retail 25,898 65,018 - 90,916
Sales - concessions - 5,156 29,774 34,930
Memberships 3,812 30,780 28,034 62,626
Admissions 98,191 - 153,534 251,725
Building rental 1,094,365 - 192,800 1,287,165
Rental of equipment 3,640 - 70,158 73,798
Greens fees - - 171,059 171,059
Other fees 120,815 401,777 471,920 994,512
Total operating revenues 1,346,721 502,731 1,117,279 2,966,731
Operating expenses:
Cost of sales and services 1,569 31,546 12,857 45,972
Personal services 577,707 277,029 874,526 1,729,262
Contractual services 465,487 249,369 395,322 1,110,178
Commodities 60,939 49,140 194,288 304,367
Central Services 45,338 25,510 64,049 134,897
Depreciation 324,802 30,633 113,334 468,769
Total operating expenses 1,475,842 663,227 1,654,376 3,793,445
Operating loss (129,121)(160,496)(537,097)(826,714)
Nonoperating revenues (expenses):
Investment income - - 338,381 338,381
Donations - 17,683 - 17,683
Interest and fiscal charges (33,292) - - (33,292)
Interest on capital lease (3,164) - (879)(4,043)
Amortization of bond discount (2,246) - - (2,246)
Total nonoperating
revenues (expenses)(38,702)17,683 337,502 316,483
Loss before transfers (167,823)(142,813)(199,595)(510,231)
Transfers:
Transfer from:
General Fund - - 4,645,868 4,645,868
Enterprise Funds 8,000 111,000 - 119,000
Capital Project Funds 6,149 8,587 277,201 291,937
Total transfers 14,149 119,587 4,923,069 5,056,805
Change in net assets (153,674)(23,226)4,723,474 4,546,574
Net assets - January 1 2,675,365 304,130 474,068 3,453,563
Net assets - December 31 $2,521,691 $280,904 $5,197,542 $8,000,137
76
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 16
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2003
Art Edinborough Park
Arena Center Centennial Lake Totals
Cash flows from operating activities:
Receipts from customers and users $1,350,510 $504,181 $1,175,365 $3,030,056
Payment to suppliers (542,154)(361,708)(576,671)(1,480,533)
Payment to employees (563,816)(271,155)(860,341)(1,695,312)
Net cash provided by
(used in)operating activities 244,540 (128,682)(261,647)(145,789)
Cash flows from noncapital financing activities:
Transfer (to) from Enterprise Funds 8,000 111,000 - 119,000
Transfer (to) from Capital Project Funds 6,149 8,587 277,201 291,937
Transfer from General Fund - - 4,645,868 4,645,868
Donations - 17,683 - 17,683
Net cash provided by
noncapital financing activities 14,149 137,270 4,923,069 5,074,488
Cash flows from capital and related
financing activities:
Acquisition of capital assets (6,148)(8,588)(277,200)(291,936)
Principal paid on bonds (170,000) - - (170,000)
Principal paid on capital lease (43,200) - (12,000)(55,200)
Interest paid on bonds (35,185) - - (35,185)
Interest paid on capital lease (3,164) - (879)(4,043)
Net cash used in capital
and related financing activities (257,697)(8,588)(290,079)(556,364)
Cash flows from investing activities:
Purchase of investments - - (4,643,982)(4,643,982)
Investment income - - 273,114 273,114
Net cash flows used in investing activities - - (4,370,868)(4,370,868)
Net increase in cash and cash equivalents 992 - 475 1,467
Cash and cash equivalents - January 1 2,527 725 2,008 5,260
Cash and cash equivalents - December 31 $3,519 $725 $2,483 $6,727
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss ($129,121)($160,496)($537,097)($826,714)
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation 324,802 30,633 113,334 468,769
Changes in assets and liabilities:
Decrease (increase) in receivables 3,789 - (6,402)(2,613)
Decrease (increase) in due from other funds 34,000 (435)36,875 70,440
Decrease (increase) in inventory - (4,313) - (4,313)
Increase (decrease) in accounts payable (2,979)(2,245)8,647 3,423
Increase (decrease) in salaries payable 5,438 1,363 3,345 10,146
Increase (decrease) in due to other funds - - 42,644 42,644
Increase (decrease) in due to other governments 158 850 1,679 2,687
Increase (decrease) in compensated absences 8,453 4,511 10,840 23,804
Increase (decrease) in deferred revenue - 1,450 64,488 65,938
Total adjustments 373,661 31,814 275,450 680,925
Net cash provided by (used in)
operating activities $244,540 ($128,682)($261,647)($145,789)
Noncash investing, capital and financing activities:
Increase in fair value of investments - - $73,739 $73,739
77
SUPPLEMENTARY FINANCIAL INFORMATION
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2003
Final
Interest Maturity
Rates Date Date
Tax Increment Bonds:
Tax Increment Refunding Bonds, Series 1993A 4.25 - 5.10 04/13/93 02/01/06
Tax Increment Refunding Taxable Bonds, Series 1996A 5.85 - 6.25 03/01/96 02/01/09
Tax Increment Bonds, Series 1997B 4.50 - 5.20 04/01/97 02/01/13
Tax Increment Bonds, Series 2000A 4.30 - 4.80 09/06/00 02/01/11
Tax Increment Bonds, Series 2000C 4.50 - 4.65 09/06/00 02/01/03
Tax Increment Bonds, Series 2002B 3.00%08/05/02 02/01/09
Tax Increment Taxable Refunding Bonds of 2003B 1.128 - 1.749 03/01/03 02/01/06
Total Tax Increment Bonds
General Obligation Bonds:
General Obligation - Park & Recreation, Series 1996B 4.25 - 5.75 08/01/96 02/01/17
General Obligation Equipment Certificates, Series 2003A 1.05 - 2.40 03/01/03 02/01/08
Total General Obligation Bonds
Public Project Revenue Bonds:
Public Project Revenue, Series 2002 4.00 - 5.25 01/01/02 02/01/21
Total Public Project Revenue Bonds
Revenue Bonds:
Recreational Facility Bonds, Series 1999B 3.70 - 4.45 05/03/99 01/01/13
Recreational Facility Bonds, Series 2001A 2.25 - 4.65 11/01/01 01/01/17
Utility Revenue Bonds, Series 1999A 3.20 - 4.20 05/03/99 02/01/09
Utility Revenue Bonds, Series 2003C 1.10 - 3.55 03/01/03 02/01/13
Total Public Project Revenue Bonds Total Revenue Bonds
Total - Bonded indebtedness
Capital lease - Fire Station 2 5.2 10/01/97 08/01/06
Capital lease - Honeywell 5.5 03/01/94 03/01/04
Compensated absences payable
Total City indebtedness
78
Exhibit 1
Prior Years Principal Interest Interest
Original Outstanding 2003 Payable Due Due Payable
Issue Redeemed 12/31/2002 Issued Payments 12/31/2003 In 2004 In 2004 to Maturity
$19,580,000 $10,600,000 $8,980,000 $ - $8,980,000 $ - $ - $ - $ -
11,250,000 2,475,000 8,775,000 - 800,000 7,975,000 900,000 463,963 1,734,668
5,090,000 550,000 4,540,000 - 200,000 4,340,000 225,000 223,099 1,318,469
2,620,000 210,000 2,410,000 - 220,000 2,190,000 230,000 95,572 434,274
15,820,000 1,070,000 14,750,000 - 1,325,000 13,425,000 1,460,000 579,217 2,178,686
1,400,000 - 1,400,000 - - 1,400,000 - 42,000 357,000
- - - 6,570,000 - 6,570,000 2,325,000 116,525 205,037
55,760,000 14,905,000 40,855,000 6,570,000 11,525,000 35,900,000 5,140,000 1,520,376 6,228,134
8,090,000 1,140,000 6,950,000 - 325,000 6,625,000 325,000 354,625 2,915,794
- - - 1,540,000 - 1,540,000 545,000 25,950 55,700
8,090,000 1,140,000 6,950,000 1,540,000 325,000 8,165,000 870,000 380,575 2,971,494
12,410,000 - 12,410,000 - 375,000 12,035,000 440,000 557,636 6,207,817
12,410,000 - 12,410,000 - 375,000 12,035,000 440,000 557,636 6,207,817
3,270,000 - 3,270,000 - 220,000 3,050,000 255,000 123,505 701,140
4,620,000 - 4,620,000 - 525,000 4,095,000 565,000 129,807 625,344
3,600,000 970,000 2,630,000 - 335,000 2,295,000 345,000 85,260 291,187
- - - 3,200,000 - 3,200,000 290,000 79,955 506,140
11,490,000 970,000 10,520,000 3,200,000 1,080,000 12,640,000 1,455,000 418,527 2,123,811
87,750,000 17,015,000 70,735,000 11,310,000 13,305,000 68,740,000 7,905,000 2,877,114 17,531,256
650,000 354,385 295,002 - 65,417 229,585 72,946 10,845 20,775
510,000 415,000 95,000 - 60,000 35,000 35,000 971 971
3,534,516
$88,910,000 $17,784,385 $71,125,002 $11,310,000 $13,430,417 $69,004,585 $8,012,946 $2,888,930 $17,553,002
79
CITY OF EDINA, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
TAX INCREMENT AND GENERAL OBLIGATION BONDS
December 31, 2003
1996A
Tax Increment 1997B 2000A 2000C
Tax. Refndg Tax Increment Tax Increment Tax Increment
Bonds Bonds Bonds Bonds
Bonds payable $7,975,000 $4,340,000 $2,190,000 $13,425,000
Future interest payable 1,734,668 1,318,469 434,274 2,178,686
Totals $9,709,668 $5,658,469 $2,624,274 $15,603,686
Payments to maturity:
2004 $1,363,963 $448,099 $325,573 $2,039,217
2005 1,309,512 461,218 325,172 2,017,505
2006 1,351,563 599,578 329,095 2,096,405
2007 1,750,705 598,306 327,329 2,838,142
2008 1,974,550 595,792 329,860 3,281,738
2009 1,959,375 591,900 326,677 3,330,679
2010 - 591,593 327,768 -
2011 - 589,831 332,800 -
2012 - 591,340 - -
2013 - 590,812 - -
2014 - - - -
2015 - - - -
2016 - - - -
2017 - - - -
$9,709,668 $5,658,469 $2,624,274 $15,603,686
80
Exhibit 2
2003B
2002B Tax Increment 1996B 2003A
Tax Increment Refunding Park & Rec Equipment Grand
Bonds Bonds Total Gen. Oblig.Certificates Total Total
$1,400,000 $6,570,000 $35,900,000 $6,625,000 $1,540,000 $8,165,000 $44,065,000
357,000 205,037 6,228,134 2,915,794 55,700 2,971,494 9,199,628
$1,757,000 $6,775,037 $42,128,134 $9,540,794 $1,595,700 $11,136,494 $53,264,628
$42,000 $2,441,525 $6,660,377 $679,625 $570,950 $1,250,575 $7,910,952
42,000 2,637,575 6,792,982 687,912 569,950 1,257,862 8,050,844
42,000 1,695,937 6,114,578 694,600 152,950 847,550 6,962,128
42,000 - 5,556,482 675,288 150,050 825,338 6,381,820
42,000 - 6,223,940 679,937 151,800 831,737 7,055,677
42,000 - 6,250,631 682,863 - 682,863 6,933,494
42,000 - 961,361 684,125 - 684,125 1,645,486
42,000 - 964,631 683,800 - 683,800 1,648,431
1,421,000 - 2,012,340 681,862 - 681,862 2,694,202
- - 590,812 678,288 - 678,288 1,269,100
- - - 673,050 - 673,050 673,050
- - - 690,412 - 690,412 690,412
- - - 680,344 - 680,344 680,344
- - - 668,688 - 668,688 668,688
$1,757,000 $6,775,037 $42,128,134 $9,540,794 $1,595,700 $11,136,494 $53,264,628
81
CITY OF EDINA, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3
PUBLIC PROJECT REVENUE BONDS
December 31, 2003
2002
Public Project
Bonds
Bonds payable $12,035,000
Future interest payable 6,207,817
Totals $18,242,817
Payments to maturity:
2004 $1,017,636
2005 1,018,286
2006 1,017,336
2007 1,020,174
2008 1,016,999
2009 1,017,811
2010 1,017,499
2011 1,015,761
2012 1,016,841
2013 1,015,551
2014 1,012,132
2015 1,011,756
2016 1,009,156
2017 1,009,181
2018 1,007,156
2019 1,007,954
2020 1,005,863
2021 1,005,725
$18,242,817
82
CITY OF EDINA, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 4
REVENUE BONDS
December 31, 2003
1999B 2001A 1999A 2003C
Recreational Recreational Utility Utility
Facility Facility Revenue Revenue
Bonds Bonds Bonds Bonds Total
Bonds payable $3,050,000 $4,095,000 $2,295,000 $3,200,000 $12,640,000
Future interest payable 701,140 625,344 291,187 506,140 2,123,811
Totals $3,751,140 $4,720,344 $2,586,187 $3,706,140 $14,763,811
Payments to maturity:
2004 $378,505 $694,807 $430,260 $369,955 $1,873,527
2005 378,492 699,126 431,775 361,507 1,870,900
2006 372,925 706,335 432,345 362,263 1,873,868
2007 381,580 691,579 432,045 366,795 1,871,999
2008 374,441 606,515 430,942 369,922 1,781,820
2009 376,580 586,578 428,820 371,565 1,763,543
2010 372,955 90,167 - 371,973 835,095
2011 373,709 92,568 - 376,247 842,524
2012 368,832 94,684 - 379,345 842,861
2013 373,121 91,609 - 376,568 841,298
2014 - 93,332 - - 93,332
2015 - 89,833 - - 89,833
2016 - 91,119 - - 91,119
2017 - 92,092 - - 92,092
$3,751,140 $4,720,344 $2,586,187 $3,706,140 $14,763,811
83
CITY OF EDINA, MINNESOTA
ASSESSED VALUATION, TAX LEVIES AND MILL RATES Exhibit 5
(shown by year of tax collectibility)
2000 2001 2002 2003 2004
Assessed valuation/tax capacity $90,806,947 $99,650,358 $72,583,694 $77,665,879 $83,089,465
Increment valuation (7,087,107)(8,559,204)(6,513,676)(6,909,331)(6,949,064)
Contribution to fiscal disparities pool (9,014,784)(10,127,351)(6,893,865)(7,587,409)(7,945,664)
Received from fiscal disparities pool 2,460,913 2,752,149 1,830,348 1,975,365 2,202,656
Taxable valuation $77,165,969 $83,715,952 $61,006,501 $65,144,504 $70,397,393
Tax levies:
General Fund $13,650,158 $14,438,346 $15,990,256 $16,171,875 $16,489,129
Public Project Revenue - -1,000,000 1,026,437 1,028,837
Certificates of Indebtedness - - -586,163 604,275
Total tax levies 13,650,158 14,438,346 16,990,256 17,784,475 18,122,241
Tax Capacity Rate:
General Fund $17.669 $17.233 $27.806 $27.139 $25.565
84
III. STATISTICAL SECTION (UNAUDITED)
CITY OF EDINA, MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
2003
(Unaudited)
Interest on
Fiscal General Public Public Long-Term
Year*Government Safety Works Parks Debt
2003 $5,839,893 $10,784,215 $5,621,291 $4,484,685 $2,760,022
*Government-wide expenses are not available for years prior to 2003
85
Table 1
Community Loss on
Aquatic Golf Activity Disposal
Utility Liquor Center Course Centers of Fixed Assets Total
$7,930,502 $8,764,081 $711,061 $3,555,243 $3,833,026 $150,382 $54,434,401
86
CITY OF EDINA, MINNESOTA
GOVERNMENT-WIDE REVENUES Table 2
2003
(Unaudited)
Charges Operating Capital Public Unrestricted
Fiscal For Grants and Grants and Property Service Tax Investment
Year*Services Contributions Contributions Taxes Taxes Increments Earnings Total
2003 $32,908,375 $1,347,776 $7,214,393 $15,600,985 $2,214,441 $7,342,270 $673,326 $67,301,566
*Government-wide expenses are not available for years prior to 2003
Program Revenues
General Revenues
87
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 3
Last Ten Fiscal Years
(Unaudited)
Total Delinquent
Total Current Percent Delinquent Collections Outstanding Taxes as
Taxes Tax Tax of Levy Tax Total Tax as Percent of Delinquent Percent of
Payable Levy Collection Collected Collections Collections Current Levy Taxes Current Levy
1994 $10,927,551 $10,691,572 97.84%$5,819 $10,697,391 97.89%$154,482 1.41%
1995 11,390,898 11,198,647 98.31%(67,047)11,131,600 97.72%88,399 0.78%
1996 12,178,440 12,026,177 98.75%(262,279)11,763,898 96.60%36,198 0.30%
1997 12,531,244 12,381,729 98.81%(244,913)12,136,816 96.85%39,107 0.31%
1998 13,099,140 13,003,882 99.27%48,985 13,052,867 99.65%54,226 0.41%
1999 13,284,962 13,147,288 98.96%36,293 13,183,581 99.24%99,202 0.75%
2000 13,650,158 13,554,044 99.30%15,355 13,569,399 99.41%116,362 0.85%
2001 14,438,346 14,331,078 99.26%25,907 14,356,985 99.44%121,548 0.84%
2002 16,990,256 16,874,198 99.32%55,578 16,929,776 99.64%132,443 0.78%
2003 17,784,475 17,088,979 96.09%68,657 17,157,636 96.48%80,841 0.45%
88
CITY OF EDINA, MINNESOTA
ASSESSED VALUE OR TAX CAPACITY AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Years 1994 through 2003 Table 4
(Unaudited)
Ratio of Total
Assessed Value/
Tax Capacity to
Assessment Assessed Value/Estimated Total Estimated
Year Tax Capacity Market Value Market Value
1994 $82,244,215 $3,733,888,400 2.20%
1995 84,055,819 3,849,796,600 2.18%
1996 85,775,887 4,071,654,134 2.11%
1997 91,586,990 4,074,713,634 2.25%
1998 87,726,810 4,267,758,501 2.06%
1999 85,963,836 4,535,761,900 1.90%
2000 90,055,752 4,861,730,000 1.85%
2001 72,133,594 5,821,566,500 1.24%
2002 77,665,879 6,328,581,300 1.23%
2003 83,089,465 6,909,476,700 1.20%
Real Property
89
CITY OF EDINA, MINNESOTA
PROPERTY TAX RATES - Table 5
ALL OVERLAPPING GOVERNMENTS
Years 1994 through 2003
(Unaudited)
Tax Rates
(Per $1,000 of Assessed Valuation)
Fiscal
Year City School County Other Total
1994 16.032 61.417 37.441 7.515 122.405
1995 15.577 57.975 37.454 6.851 117.857
1996 16.331 62.268 37.270 7.494 123.363
1997 15.626 57.213 35.515 6.659 115.013
1998 16.813 47.499 38.388 7.538 110.238
1999 17.810 50.766 40.994 8.553 118.123
2000 17.669 51.678 39.655 8.426 117.428
2001 17.233 46.839 37.624 8.126 109.822
2002 27.806 18.504 50.409 7.707 104.426
2003 27.139 23.312 50.607 7.757 108.815
90
CITY OF EDINA, MINNESOTA
SPECIAL ASSESSMENT COLLECTIONS Table 6
Last Ten Fiscal Years
(Unaudited)
Percent
Collection Percent of Total Total
Total of Current of Levy Delinquent Total Collections to Outstanding
Year Levy Year's Levy Collected Collections Collections Total Levy Assessments
1994 $807,324 $800,456 99.15%$5,622 $806,078 99.85%$27,523
1995 786,480 779,517 99.11%7,508 787,025 100.07%26,223
1996 768,800 764,997 99.51%16,636 781,633 101.67%13,389
1997 590,048 576,513 97.71%9,036 585,549 99.24%17,889
1998 654,442 635,476 97.10%3,798 639,274 97.68%33,057
1999 773,251 753,251 97.41%14,273 767,524 99.26%38,784
2000 960,562 930,484 96.87%5,586 936,070 97.45%63,275
2001 1,003,856 975,921 97.22%51,173 1,027,094 102.31%40,038
2002 974,141 950,417 97.56%23,756 974,173 100.00%40,006
2003 978,278 964,440 98.59%24,439 988,879 101.08%29,404
91
CITY OF EDINA, MINNESOTA
RATIO OF NET BONDED DEBT Table 7
TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
Last Ten Fiscal Years
(Unaudited)
Debt Ratio of
Gross Service Net Bonded Net Bonded
Fiscal Net Tax Bonded Monies Net Bonded Debt to Debt
Year Population (1)Capacity Debt (2)Available Debt Tax Capacity Per Capita
1994 46,984 $73,066,000 $104,615,000 $44,810,021 $59,804,979 81.85%1,272.88
1995 46,841 74,787,000 101,775,000 43,265,984 58,509,016 78.23%1,249.10
1996 46,845 80,087,160 92,680,000 25,429,215 67,250,785 83.97%1,435.60
1997 47,029 77,762,151 94,385,000 17,929,523 76,455,477 98.32%1,625.71
1998 47,113 85,259,000 70,260,000 589,371 69,670,629 81.72%1,478.80
1999 47,235 77,165,969 73,005,000 4,384,419 68,620,581 88.93%1,452.75
2000 47,425 83,715,952 88,175,000 21,251,947 66,923,053 79.94%1,411.13
2001 47,465 61,006,501 72,465,000 8,321,645 64,143,355 105.14%1,351.38
2002 47,465 65,486,283 70,735,000 3,070,758 67,664,242 103.33%1,425.56
2003 47,570 70,755,808 68,740,000 4,053,306 64,686,694 91.42%1,359.82
(1) Population estimates provided from Metropolitan Council which reflect the federal census.
(2) Includes all long-term general obligation debt.
92
CITY OF EDINA, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 8
INCLUDING DEBT RATIOS
December 31, 2003
(Unaudited)
Bonded Percentage
Gross Debt Applicable City Share
Overlapping Debt:Outstanding In City of Debt
Hennepin County $341,228,971 7.05%$24,056,642
Hennepin Suburban Park District $11,615,904 9.22%1,070,986
Hennepin Regional RR Authority $48,112,294 7.05%3,391,917
School Districts:
ISD No. 273 (Edina)24,592,360 98.04%24,110,350
ISD No. 270 (Hopkins)83,421,301 8.60%7,174,232
ISD No. 271 (Bloomington)134,630,000 0.01%13,463
ISD No. 272 (Eden Prairie)89,325,063 0.81%723,533
ISD No. 280 (Richfield)25,167,050 17.23%4,336,283
ISD No. 283 (St. Louis Park)49,139,426 0.01%4,914
Metro Council 128,486,881 5.70%7,323,752
Total Overlapping Debt 935,719,250 72,206,072
Direct Debt:
City of Edina 42,030,303 100.00%42,030,303
Total Overlapping and Direct Debt $977,749,553 $114,236,375
Debt Ratios:
Ratio of debt per capita (47,570 population)$2,401
Ratio of debt to estimated market valuation of $6,909,476,700 1.65%
93
CITY OF EDINA, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR Table 9
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
(Unaudited)
Percent of
Debt Service
Interest Total Total Expenditures
Fiscal and Debt General To General
Year Principal Other Service Expenditures Expenditures
1994 $1,185,000 $6,148,466 $7,333,466 $22,035,991 33.28%
1995 2,495,000 5,378,815 7,873,815 23,630,853 33.32%
1996 1,400,000 4,881,475 6,281,475 23,128,537 27.16%
1997 2,120,000 4,502,948 6,622,948 24,000,082 27.60%
1998 2,224,724 4,099,809 6,324,533 25,390,000 24.91%
1999 3,275,000 3,262,266 6,537,266 25,131,088 26.01%
2000 6,050,000 3,108,601 9,158,601 25,814,880 35.48%
2001 3,740,000 3,148,719 6,888,719 28,382,482 24.27%
2002 5,885,000 3,094,480 8,979,480 30,675,141 29.27%
2003 5,700,000 2,883,377 8,583,377 30,539,932 28.11%
Note: This table includes General, Special Revenue and Debt Service Funds.
94
CITY OF EDINA, MINNESOTA
REVENUE BOND COVERAGE Table 10
Last Ten Fiscal Years
(Unaudited)
Net
revenue
Direct*available
Fiscal Gross Operating for debt
Year Revenue expenses service Principal Interest Total Coverage
Utility Bond
1994 $7,011,288 $6,602,736 $408,552 $2,165,000 $155,573 $2,320,573 $18
1995 7,591,331 6,766,288 825,043 345,000 78,182 423,182 195
1996 7,753,016 7,007,293 745,723 370,000 52,019 422,019 177
1997 8,110,744 7,526,033 584,711 390,000 40,744 430,744 136
1998 8,108,612 7,226,648 881,964 400,000 22,184 422,184 209
1999 8,502,423 6,713,673 1,788,750 420,000 83,429 503,429 355
2000 8,793,386 7,205,934 1,587,452 335,000 127,525 462,525 343
2001 8,556,810 7,065,589 1,491,221 310,000 116,794 426,794 349
2002 8,561,287 7,399,773 1,161,514 325,000 105,205 430,205 270
2003 9,668,435 7,769,810 1,898,625 335,000 160,691 495,691 383
Recreational Facility Bonds
1994 3,446,755 3,086,401 360,354 200,000 854,920 1,054,920 34
1995 3,824,627 3,262,948 561,679 - 839,244 839,244 67
1996 4,311,141 3,545,291 765,850 250,000 774,800 1,024,800 75
1997 4,440,202 3,945,975 494,227 295,000 762,411 1,057,411 47
1998 5,042,394 4,270,042 772,352 4,240,000 372,390 4,612,390 17
1999 5,141,606 4,332,932 808,674 430,000 522,050 952,050 85
2000 5,727,930 5,209,610 518,320 450,000 553,962 1,003,962 52
2001 5,430,507 5,231,143 199,364 470,000 531,176 1,001,176 20
2002 5,424,422 5,031,839 392,583 6,780,000 611,509 7,391,509 5
2003 5,866,300 5,511,730 354,570 745,000 265,602 1,010,602 35
Debt service requirements
95
CITY OF EDINA, MINNESOTA
PROPERTY AND CONSTRUCTION VALUES Table 11
Years 1994 through 2003
(Unaudited)
Number of Number of Commercial/Residential/
Year Permits Value Permits Value Industrial Apartments
1994 267 $14,695,441 689 $29,985,727 $691,570,800 $3,042,317,600
1995 274 14,349,143 564 28,064,106 668,098,800 3,181,697,800
1996 279 35,789,432 1,318 31,334,870 745,200,700 3,326,107,834
1997 407 37,074,290 1,780 32,387,315 824,767,100 3,438,309,200
1998 462 38,495,806 1,830 35,625,118 904,869,800 3,623,187,200
1999 323 36,708,942 3,478 27,637,742 980,837,900 3,924,031,400
2000 1,418 66,980,499 4,013 48,278,737 1,069,928,100 4,387,874,100
2001 838 86,488,859 4,975 57,658,783 1,173,397,300 5,056,797,500
2002 828 55,190,973 4,820 58,682,850 1,217,214,600 5,834,821,900
2003 831 46,442,783 4,794 69,680,672 1,202,162,900 6,286,945,800
* Assessor's estimated market value
Property value *construction
Commercial Residential
construction
96
CITY OF EDINA, MINNESOTA
PRINCIPAL TAXPAYERS Table 12
2003
(Unaudited)
2003
Net
Taxpayer Type of Business Tax Capacity
Southdale Shopping center $2,414,156
Galleria Shopping center 863,446
Southdale Office park Office building 805,652
Centennial lakes Phase V Office building 525,414
United HealthCare Corporation Office building 512,124
Centennial Lakes Phase IV Office building 511,854
7700 France Office building 497,686
Southdale Medical Building Office building 428,608
Centennial Lakes Phase III Office building 310,402
Centennial Lakes Phase II Office building 310,402
Source: City of Edina Assessing Office
97
CITY OF EDINA, MINNESOTA
MAJOR EMPLOYERS IN THE CITY Table 13
2003
(Unaudited)
Approximate
Number
Employer Product/Service of Employees
Fairview Southdale Hospital General Medical & Surgical Hospitals 2,400
Jerry's Enterprises Inc.Grocery Stores 2,000
Golden Valley Microwave Foods Grocery Stores 650
Health Risk Management Inc.Insurance Carrier 552
Marshall Fields Department Store 500
J.C. Penney Department 400
Norwest Funding Mortgage Bankers & Correspondents 358
Nash Finch Co.Grocery Stores 350
International Dairy Queen Inc.Full-Service Restaurants 300
Roach Organization Inc.Electronics & Appliance Stores 140
Techpower Inc.Employment Services 120
Source: City of Edina "Community Profile", Minnesota Department of Trade and Economic Development, 2003
98
CITY OF EDINA, MINNESOTA
LABOR FORCE DATA Table 14
2003
(Unaudited)
Civilian Unemployment Civilian Unemployment
Labor Force Rate Labor Force Rate
Hennepin County 687,345 4.10%692,580 3.60%
Mpls.-St. Paul MSA 1,825,102 4.70%1,820,503 3.80%
State of Minnesota 2,912,336 5.30%2,888,066 4.00%
Source: Minnesota Workforce Center.
December 2003 December 2002
99
CITY OF EDINA, MINNESOTA
MISCELLANEOUS STATISTICAL DATA Table 15
December 31, 2003 Page 1 of 2
(Unaudited)
Date of incorporation December 17, 1888
Form of government Plan B
Date of adoption of Council-Manager Plan January 1, 1955
Fiscal year begins January 1
Area of city 16 square miles
Percent of City developed with buildings 97%
Municipal bond rating Aaa
Miles of streets 224 miles
Miles of sanitary sewer 186.22 miles
Sewer connections 13,984
Fire protection:
Number of stations 2
Number of employees (full time)31
Police Protection:
Number of stations 1
Number of employees (full time)67
Park land:
Present park acres and open space 1,600
Total improved park acres 1,007
Number of parks 40
Private golf courses 2
Public golf courses 3
Municipal water:
Number of wells 18
Miles of watermain 198.81
Gallons of storage 7 million
Number of consumers 14,025
100
CITY OF EDINA, MINNESOTA
MISCELLANEOUS STATISTICAL DATA Table 15
December 31, 2003 Page 2 of 2
(Unaudited)
Population:
1930 Census 3,138
1940 Census 5,855
1950 Census 9,744
1960 Census 28,501
1965 Special Census 35,302
1970 Census 44,046
1975 Metro Council estimate 49,736
1980 Census 46,073
1990 Census 46,070
1991 Metro Council estimate 46,070
1992 Metro Council estimate 46,079
1993 Metro Council estimate 46,916
1994 Metro Council estimate 46,984
1995 Metro Council estimate 46,841
1996 Metro Council estimate 46,845
1997 Metro Council estimate 47,029
1998 Metro Council estimate 47,113
1999 Metro Council estimate 47,235
2000 Census 47,425
2001 Metro Council estimate 47,465
2002 Metro Council estimate 47,465
2003 Metro Council estimate 47,570
101
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Table 16
FOR 50TH & FRANCE-NO. 1200, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2003
(Unaudited)
Accounted
Original Amended for in Current Amount
Budget Budget prior years year remaining
Source of funds:
Bond proceeds $2,200,000 $5,280,000 $5,251,998 - $28,002
Tax increments received - 31,748,489 19,943,498 918,741 10,886,250
Real estate sales *800,000 170,782 170,782 - -
State aid - 418,871 418,871 - -
Special assessments - 1,321,096 728,505 - 592,591
Parking permits - 268,524 268,524 - -
Community development - 186,064 186,064 - -
Interest on invested funds - 2,000,000 2,521,869 89,501 (611,370)
Other - 73,881 73,881 - -
Total sources of funds:3,000,000 41,467,707 29,563,992 1,008,242 10,895,473
Uses of funds:
Land acquisition - 873,061 873,061 - -
Installation of public utilities
and improvements 3,000,000 7,867,034 7,862,032 - 5,002
Bond payments:
Principal - 5,280,000 2,900,000 800,000 1,580,000
Interest - 4,738,329 4,030,274 76,790 631,265
Administrative costs - 1,230,000 1,205,451 - 24,549
Paid to other governments - 21,000 10,696 1,670 8,634
Work orders - 16,257 16,257 - -
Contingencies - 11,644 11,644 - -
Interest - 463,037 463,037 - -
Miscellaneous - 62,095 63,010 - (915)
Transfer - 10,000,000 8,157,223 1,842,777 -
Total uses of funds:3,000,000 30,562,457 25,592,685 2,721,237 2,248,535
Funds remaining (deficit) - 10,905,250 3,971,307 (1,712,995)8,646,938
Cost to authority Price paid by developer
* Real estate sales
Liquor store site $128,064 $105,002
Union oil site 134,506 65,780
$262,570 $170,782
102
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Table 17
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1201, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2003
(Unaudited)
Accounted
Original Amended for in Current Amount
Budget Budget prior years year remaining
Source of funds:
Bond proceeds $6,165,177 $21,470,000 $20,219,852 - $1,250,148
Tax increments received - 75,000,000 44,284,569 2,717,870 27,997,561
Real estate sales *598,005 3,000,000 2,642,115 - 357,885
Loan proceeds - 1,321,096 - - 1,321,096
Community development - 189,221 189,221 - -
Interest on invested funds - 3,500,000 2,574,481 41,012 884,507
Other - 50,000 1,357 - 48,643
Total sources of funds:6,763,182 104,530,317 69,911,595 2,758,882 31,859,840
Uses of funds:
Land acquisition 6,682,998 12,200,000 6,894,303 - 5,305,697
Installation of public utilities
and improvements - 16,000,000 14,278,823 - 1,721,177
Site improvements or
preparation costs 2,885,484 2,000,000 468,098 - 1,531,902
Bond payments:
Principal - 21,470,000 16,080,000 1,455,000 3,935,000
Interest - 20,100,000 19,396,814 204,212 498,974
Administrative costs 194,700 1,800,000 1,674,344 (356)126,012
Paid to other governments - 110,000 49,533 8,684 51,783
Transfers out - 17,000,000 6,606,312 1,438,465 8,955,223
Interest reduction - 1,850,000 - - 1,850,000
Parkland dedication fees - 767,852 767,852 - -
Total uses of funds:9,763,182 93,297,852 66,216,079 3,106,005 23,975,768
Funds remaining (deficit)(3,000,000)11,232,465 3,695,516 (347,123)7,884,072
Cost to authority Price paid by developer
* Real estate sales
Retail site $8,350 $11,899
Hotel site 192,915 192,915
Elderly site 453,740 346,534
Office site 1,027,277 784,563
Coventry Townhouses 1,318,103 1,318,103
$3,000,385 $2,654,014
103
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Table 18
FOR GRANDVIEW AREA REDEVELOPMENT DISTRICT-NO. 1202, A TAX INCREMENT FINANCING DISTRICT
December 31, 2003
(Unaudited)
Accounted
Original Amended for in Current Amount
Budget Budget prior years year remaining
Source of funds:
Bond proceeds $4,500,000 $9,900,000 $9,475,915 - $424,085
Tax increments received - 29,737,107 9,083,581 826,409 19,827,117
Real estate sales * - 4,700,000 5,402,344 - (702,344)
Interest on invested funds - 300,000 805,704 39,199 (544,903)
Other - - 59,868 - (59,868)
Total sources of funds:4,500,000 44,637,107 24,827,412 865,608 18,944,087
Uses of funds:
Land acquisition - 6,500,000 3,570,547 63,545 2,865,908
Installation of public utilities
and improvements 4,310,000 17,127,000 9,738,845 90 7,388,065
Bond payments:
Principal - 9,900,000 5,627,555 420,000 3,852,445
Interest - 9,190,000 2,401,617 152,014 6,636,369
Loan/note interest - - 786,325 550,941 (1,337,266)
Paid to other governments - - 189,293 1,229 (190,522)
Administrative costs 190,000 1,920,107 1,270,051 17,542 632,514
Total uses of funds:4,500,000 44,637,107 23,584,233 1,205,361 19,847,513
Funds remaining (deficit) - - 1,243,179 (339,753)(903,426)
Cost to authority Price paid by developer
* Real estate sales
5229 Eden Ave.$1,822,319
5220 Eden Circle 995,000
5244 Eden Circle (condemnation deposit)309,937
5201 Eden Circle 506,836 2,070,119
Project area - 4,005,694
$3,634,092 $6,075,813
104
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Table 19
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1203, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2003
(Unaudited)
Accounted
Original Amended for in Current Amount
Budget Budget prior years year remaining
Source of funds:
Bond proceeds $41,400,000 $41,400,000 $33,761,677 - $7,638,323
Tax increments received 80,000,000 90,000,000 21,329,394 2,879,250 65,791,356
Real estate sales *5,000,000 11,637,070 11,637,070 - -
Special assessment - 1,321,096 - - 1,321,096
Interest on invested funds - 2,500,000 2,396,972 88,965 14,063
Transfer in - 28,000,000 15,874,758 3,281,243 8,843,999
Sale of material - 255,710 255,710 - -
Developer payments - 297,826 297,826 - -
Other - 20,000 17,719 4,080 (1,799)
Total sources of funds:126,400,000 175,431,702 85,571,126 6,253,538 83,607,038
Uses of funds:
Land acquisition 13,900,000 22,981,425 22,981,425 - -
Installation of public utilities
and improvements 26,677,000 25,871,230 16,594,753 - 9,276,477
Bond payments:
Principal 41,400,000 41,400,000 7,679,724 2,325,000 31,395,276
Interest 38,000,000 38,000,000 28,619,326 1,389,760 7,990,914
Administrative costs 1,140,800 1,600,000 1,254,641 10,945 334,414
Paid to other governments - 42,000 17,551 3,232 21,217
Loan/note interest - 14,684,711 2,045,865 524,047 12,114,799
Parkland dedication fees - 2,030,345 2,030,345 - -
Total uses of funds:121,117,800 146,609,711 81,223,630 4,252,984 61,133,097
Funds remaining (deficit)5,282,200 28,821,991 4,347,496 2,000,554 22,473,941
Cost to authority Price paid by developer
* Real estate sales
Retail and theater site $3,213,720 $3,213,720
Medical office site 815,092 815,092
Office site 1,107,160 1,107,160
Office building #1 449,300 449,300
Office building #2 1,280,702 1,280,702
Office building #3 1,341,533 1,341,533
Office building #4 1,625,849 1,625,849
Office building #5 1,803,714 1,803,714
$11,637,070 $11,637,070
105
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Table 20
FOR 70TH STREET AND CAHILL ROAD DISTRICT-NO. 1207, A TAX INCREMENT FINANCING DISTRICT
December 31, 2003
(Unaudited)
Accounted
Original Amended for in Current Amount
Budget Budget prior years year remaining
Source of funds:
Bond proceeds $1,911,000 $1,911,000 - - $1,911,000
Tax increments received 2,177,855 2,177,855 746,863 - 1,430,992
Interest on invested funds - - 159,841 15,635 (175,476)
Other - - - - -
Total sources of funds:4,088,855 4,088,855 906,704 15,635 3,166,516
Uses of funds:
Land acquisition 529,400 529,400 11,215 4,575 513,610
Installation of public utilities
and improvements 325,000 325,000 540,279 - (215,279)
Demolition 150,000 150,000 - - 150,000
Relocation 160,000 160,000 - - 160,000
Capitalized interest 150,000 150,000 - - 150,000
Debt service 2,178,455 2,178,455 - - 2,178,455
Paid to other governments - - 2,730 - (2,730)
Administrative costs 596,000 596,000 74,570 260 521,170
Total uses of funds:4,088,855 4,088,855 628,794 4,835 3,455,226
Funds remaining (deficit) - - 277,910 10,800 (288,710)
106