HomeMy WebLinkAbout2004 Comprehensive Annual Financial Report2004
Comprehensive Annual
Financial Report
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2004
Prepared by:
Department of Finance
John Wallin – Treasurer and Finance Director
Eric Roggeman – Assistant Finance Director
Paula Nelson – Accountant
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
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 AssetsStatement 121
Statement of ActivitiesStatement 222
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 325
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental FundsStatement 426
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 527
Statement of Net Assets - Proprietary FundsStatement 628
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary FundsStatement 729
Statement of Cash Flows - Proprietary FundsStatement 830
Statement of Fiduciary Net Assets - Fiduciary FundsStatement 932
Notes to the Financial Statements 33
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General FundStatement 1059
Notes to Required Supplementary Information65
I
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Combining and Individual Non Major Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Special Revenue FundsStatement 1168
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue FundsStatement 1269
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and ActualStatement 1370
Combing Statement of Net Assets - Nonmajor Proprietary FundsStatement 1472
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets - Nonmajor Proprietary FundsStatement 1573
Combining Statement of Cash Flows - Nonmajor Proprietary FundsStatement 1674
Supplementary Financial Information:
Combined Schedule of IndebtednessExhibit 176
Debt Service Payments to Maturity:
Tax Increment and General Obligation BondsExhibit 278
Public Project Revenue BondsExhibit 380
Revenue BondsExhibit 481
Assessed Valuation, Tax Levies and Mill RatesExhibit 582
III. STATISTICAL SECTION (UNAUDITED)
Government-wide Information:
Government-wide Expenses By FunctionTable 184
Government-wide RevenuesTable 286
Fund Information:
Property Tax Levies and CollectionsTable 387
Assessed Value or Tax Capacity and Estimated Market Value of
Taxable PropertyTable 488
Property Tax Rates - All Overlapping GovernmentsTable 589
Special Assessment CollectionsTable 690
II
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
ReferenceNo.
Ratio of Net Bonded Debt to Assessed Value and Net Bonded
Debt per CapitaTable 791
Computation of Direct and Overlapping DebtTable 892
Ratio of Annual Debt Service Expenditures for General BondedTable 993
Debt to Total General Expenditures
Revenue Bond CoverageTable 1094
Property and Construction ValuesTable 1195
Principal TaxpayersTable 1296
Major Employers in the CityTable 1397
Labor Force Data Table 1498
Miscellaneous Statistical DataTable 1599
Schedule of Sources and Uses of Public Funds for Tax Increment Financing Districts:
For 50th and France - District No. 1200Table 16101
For Southeast Edina Redevelopment District No. 1201Table 17102
For Grandview Area Redevelopment District No. 1202Table 18103
For Southeast Edina Redevelopment District No. 1203Table 19104
For 70th and Cahill Road District No. 1207Table 20105
III
IV
This page left blank intentionally.
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 48,156. 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 consisting 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 policies 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 59 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 67.
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 that 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, 2004
Term Expires
Mayor:
James Hovland December 31, 2008
Council Members:
Scot Housh December 31, 2006
Alice Hulbert December 31, 2006
Linda Masica December 31, 2008
Ann Swenson December 31, 2008
City Manager:
Gordon Hughes Appointed
Finance Director/Treasurer:
John Wallin Appointed
City Clerk:
Debra Mangen Appointed
5
City of Edina
Boards andCommissions
HRA Personnel
Elections
City Clerk
Human Resources
Human Services
Communications
Technology
Liquor
Administration Assessing
Recycling
Health
Water and Sewer
Street Maintenance
Engineering
Public
Works
Planning
Recreational
Facilities
Recreational
Programs
Park Maintenance
Parks and
Recreation
Building
Inspections
Finance
Civil Defense
Animal Control
Police Operations
Police
Prevention and
Control
EMS
Special Operations
Fire
Public Safety
City Manager
City Council City Attorney
Citizens
9
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Edina (the City), we offer readers of the City’s financial
statements this narrative overview and analysis of the financial activities of the City for the
fiscal year ended December 31, 2004. 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.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$114,403,284 (Net assets). Of this amount, $40,696,536 (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 $9,087,525.
• As of the close of the current fiscal year, the City’s governmental funds reported
combined ending fund balances of $31,515,512. Of this total amount, $21,989,409, or
70%, is designated or reserved through legal restrictions and City Council authorization.
• At the end of the current fiscal year the general fund balance of $10,616,826, included
$390,771 reserved and $10,226,055 designated. The unreserved amount represents 46%
of total general fund expenditures.
• The City’s total bonded debt decreased by $7,905,000 during the current fiscal year, from
$68,740,000 to $60,835,000. The City did not issue any new debt during 2004.
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.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City’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 is improving or deteriorating.
Management’s Discussion and Analysis (Continued)
10
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 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 21 through 23 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
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
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.
Management’s Discussion and Analysis (Continued)
11
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 25 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 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
available to support the City’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.
Management’s Discussion and Analysis (Continued)
12
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 58 of this
report.
Other information. The combining statements referred to earlier in connection with non-
major governmental and enterprise funds are presented immediately following the required
supplementary information on budgetary comparisons. Combining and individual fund
statements and schedules can be found on pages 67 through 74 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
$114,403,284 at the close of the most recent fiscal year.
The largest portion of the City's net assets ($71,561,260 or 63%) 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 uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending.
Although the City'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.
City of Edina’s Net Assets
A portion of the City's net assets represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net assets ($40,696,536)
may be used to meet the City's ongoing obligations to citizens and creditors.
200420032004200320042003
Current and
other assets36,819,938$ 41,326,412$ 14,653,953$ 17,427,523$ 51,473,891$ 58,753,935$
Capital assets83,676,658 80,485,636 48,340,698 44,276,094 132,017,356 124,761,730
Total assets120,496,596$ 121,812,048$ 62,994,651$ 61,703,617$ 183,491,247$ 183,515,665$
Long-term liabilities
outstanding45,184,272$ 52,245,749$ 10,323,185$ 11,793,473$ 55,507,457$ 64,039,222$
Other liabilities10,084,012 11,220,391 3,496,494 2,940,293 13,580,506 14,160,684
Total liabilities55,268,284$ 63,466,140$ 13,819,679$ 14,733,766$ 69,087,963$ 78,199,906$
Net assets:
Invested in capital
assets, net of
related debt34,320,784$ 21,792,377$ 37,240,476$ 29,952,549$ 71,561,260$ 51,744,926$
Restricted2,145,488 4,676,748 - 1,672,828 2,145,488 6,349,576
Unrestricted28,762,040 31,876,783 11,934,496 15,344,474 40,696,536 47,221,257
Total net assets65,228,312$ 58,345,908$ 49,174,972$ 46,969,851$ 114,403,284$ 105,315,759$
Governmental ActivitiesBusiness-type ActivitiesTotals
Management’s Discussion and Analysis (Continued)
13
At the end of the current fiscal year, the City 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 $9,087,525 during the current fiscal year. This increase is
a combination of many surpluses and deficits, but the primary reason is that the City is
generating cash sufficient to build new infrastructure and pay down current debt. This
creates positive revenues but has no immediate corresponding expense under the full accrual
accounting basis used for the government-wide statements.
Governmental Activities
Governmental activities increased the City of Edina's net assets by $6,882,404, accounting
for 76% of the total growth in net assets. Key elements of this increase are as follows:
City of Edina's Changes in Net Assets
200420032004200320042003
Revenues:
Program revenues:
Charges for services5,837,745$ 6,041,613$ 27,461,413$ 26,866,762$ 33,299,158$ 32,908,375$
Operating grants and
contributions1,154,808 1,215,745 138,447 132,031 1,293,255 1,347,776
Capital grants and
contributions4,192,947 7,214,393 - - 4,192,947 7,214,393
General revenues:
Property taxes17,865,757 17,815,426 - - 17,865,757 17,815,426
Other taxes7,212,890 7,342,270 - - 7,212,890 7,342,270
Gain on disposal of asset- 26,669 6,490 - 6,490 26,669
Unrestricted investment
earnings443,074 286,209 227,167 387,117 670,241 673,326
Total revenues36,707,221 39,942,325 27,833,517 27,385,910 64,540,738 67,328,235
Expenses:
General government6,934,045 5,839,893 - - 6,934,045 5,839,893
Public safety11,063,767 10,784,215 - - 11,063,767 10,784,215
Public works5,834,490 5,621,291 - - 5,834,490 5,621,291
Parks4,248,060 4,484,685 - - 4,248,060 4,484,685
Interest on long-term debt2,399,682 2,760,022 - - 2,399,682 2,760,022
Utilities- - 7,801,580 8,107,553 7,801,580 8,107,553
Liquor- - 9,110,888 8,764,081 9,110,888 8,764,081
Aquatic Center- - 701,768 711,061 701,768 711,061
Golf course- - 3,508,741 3,555,243 3,508,741 3,555,243
Community Activity Centers- - 3,850,192 3,833,026 3,850,192 3,833,026
Total expenses 30,480,044 29,490,106 24,973,169 24,970,964 55,453,213 54,461,070
Increase in net assets
before transfers6,227,177 10,452,219 2,860,348 2,414,946 9,087,525 12,867,165
Transfers655,227 (4,053,805) (655,227) 4,053,805 - -
Increase in net assets6,882,404 6,398,414 2,205,121 6,468,751 9,087,525 12,867,165
Net assets - January 158,345,908 51,947,494 46,969,851 40,501,100 105,315,759 92,448,594
Net assets - December 3165,228,312$ 58,345,908$ 49,174,972$ 46,969,851$ 114,403,284$ 105,315,759$
Governmental ActivitiesBusiness-type ActivitiesTotals
Management’s Discussion and Analysis (Continued)
14
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Revenues by Source - Governmental Activities
Property taxes
50%
Tax increment
collections
18%
Other
1%
Franchise taxes
1%
Capital grants and
contributions
11%
Operating grants
and contributions
3%
Charges for
services
16%
-
2
4
6
8
10
12
Millions
General
government
Public safetyPublic worksParksInterest on
long-term
debt
Expenses and Program Revenues - Governmental
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
15
Business-type Activities
Business-type activities increased net assets by $2,205,121 accounting for 24% of the City of
Edina's growth in net assets. Key elements of this increase are as follows:
• Charges for services for business-type activities increased 2.2% from 2003. The
Community Activity Centers had the largest individual percentage increase (9.7%) in
charges for services, driven by large increases at the Edinborough Park Playpark,
which is the City’s new indoor play area.
• Business-type activities made net transfers of $655,227 to governmental activities
during 2004 to provide cash flow for operational and capital improvement needs.
Revenues by Source - Business-type Activities
Charges for
services
98.7%
Operating grants
and
contributions
0.5%
Unrestricted
investment
earnings
0.8%
-
2
4
6
8
10
12
Millions
UtilitiesLiquorAquatic CenterGolf courseCommunity
Activity Centers
Expenses and Program Revenues - Business-
type Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
16
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
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’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's governmental funds reported combined ending
fund balances of $31,515,512, a decrease of $3,239,166 in comparison with the prior year.
Approximately 88 percent of this total amount ($27,659,301) constitutes unreserved fund
balance. The remainder of the fund balance is reserved because it has already been
committed 1) to provide for prepaid items ($390,771), 2) to pay committed contracts
($997,133), 3) for special projects ($322,819), 4) to pay debt service ($2,145,488).
The general fund is the chief operating fund of the City. At the end of the current fiscal year,
unreserved fund balance of the general fund was $10,226,055. As a measure of the general
fund’s liquidity, unreserved fund balance represents 46% of total general fund expenditures.
The fund balance of the City’s general fund increased by $242,761 during the current fiscal
year. Key factors in this growth are as follows:
• Total general fund revenues increased by 3.7% in the current fiscal year. One of the
largest individual increases was in ambulance fee revenue, which was due to a
combination of increases in number of runs and rates. Investment income also
increased $236,976 in the current fiscal year, due to better investment market
conditions.
• Total general fund expenditures increased 4.3% in the current fiscal year. Some
increased costs were incurred in the elections department due to the 2004 general
election, and the police protection department due to increased personal services
expenditures.
• A budgeted transfer of $666,500 from the liquor fund was made to the revolving fund
instead of the general fund due to the relative strength of the general fund’s financial
position and positive operating results.
The debt service fund has a total fund balance of $2,145,488, all of which is reserved for the
payment of debt service.
The construction fund balance increased by $1,311,641 in 2004 as municipal state aid
payments exceeded construction costs.
Management’s Discussion and Analysis (Continued)
17
The Housing and Redevelopment Authority fund balance decreased by $790,129 in the
current fiscal year as several tax increment 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 balance decreased by $4,066,879 in the current fiscal year due to final
construction costs of the new City Hall and Police facility.
Proprietary funds. The City’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
Operating revenues and expenses in the Utilities fund both decreased slightly in 2004, despite
small rate increases that are intended to help replace aging infrastructure. The City’s
continuing investments in infrastructure are reported as increases in net capital assets, which
increased $4,064,604 from 2003.
The liquor fund made transfers totaling $999,500 to other funds during 2004. The majority
of this amount ($766,500) was transferred to the revolving fund, with the remainder
transferred to nonmajor proprietary funds.
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, 2004, amounted to $132,017,356 (net of
accumulated depreciation). This investment in capital assets included land, land
improvements, buildings, vehicles and equipment.
Management’s Discussion and Analysis (Continued)
18
City of Edina’s Capital Assets
(Net of Depreciation)
Major capital asset events during the current fiscal year included the following:
• Construction was completed on the new City Hall and Police facility in early 2004.
• Work continues on the 800MHZ public safety radio system; construction in progress
as of the end of the year reached $1,305,838.
• A variety of street construction, sidewalk and traffic signal projects began in 2004;
construction in progress as of the close of the year reached $12,124,167.
Additional information on the City’s capital assets can be found in Note 3.
Long-term debt. At the end of the current fiscal year, the City of Edina had total bonded
long-term debt outstanding of $60,835,000, a decrease of $7,905,000 from 2003. $7,295,000
is for general obligation improvement debt that is supported by property tax levies. An
additional $30,760,000 of general obligation tax increment debt financed the City’ economic
development program. Also outstanding is $11,595,000 public project revenue bonds which
financed the new City Hall and Police facility.
There is a total of $11,185,000 in revenue bonds for improvements to the enterprise funds.
City of Edina’s Outstanding Debt
The City 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 is $160,673,598.
Only $5,153,097 of the City's outstanding debt is counted within the statutory limitation.
200420032004200320042003
Tax increment bonds30,760,000$ 35,900,000$ -$ -$ 30,760,000$ 35,900,000$
General obligation bonds7,295,000 8,165,000 - - 7,295,000 8,165,000
Public project revenue bonds11,595,000 12,035,000 - - 11,595,000 12,035,000
Revenue bonds- - 11,185,000 12,640,000 11,185,000 12,640,000
Total49,650,000$ 56,100,000$ 11,185,000$ 12,640,000$ 60,835,000$ 68,740,000$
Governmental ActivitiesBusiness-Type ActivitiesTotals
200420032004200320042003
Land and land
improvements30,798,413$ 30,364,104$ 5,832,714$ 6,082,728$ 36,631,127$ 36,446,832$
Buildings and
improvements29,271,125 20,035,582 34,527,992 34,500,924 63,799,117 54,536,506
Machinery and equipment9,155,646 5,680,678 2,385,570 2,198,993 11,541,216 7,879,671
Construction in progress14,451,474 24,405,272 5,594,422 1,493,449 20,045,896 25,898,721
Total83,676,658$ 80,485,636$ 48,340,698$ 44,276,094$ 132,017,356$ 124,761,730$
Governmetal ActivitiesBusiness-Type ActivitiesTotals
Management’s Discussion and Analysis (Continued)
19
Additional information on the City’s long-term debt can be found in Note 5.
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.
20
This page left blank intentionally.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2004
GovernmentalBusiness-type
Assets:ActivitiesActivitiesTotal
Current assets:
Cash and cash equivalents36,515$ 18,823$ 55,338$
Investments33,952,002 8,737,264 42,689,266
Accrued interest 87,328 44,616 131,944
Accounts receivable 538,530 2,431,937 2,970,467
Special assessments receivable3,236,382 163,798 3,400,180
Due from other governments508,926 7,714 516,640
Prepaid items390,771 - 390,771
Internal balances(2,068,691) 2,068,691 -
Inventory- 1,148,944 1,148,944
Deferred charges138,175 32,166 170,341
Total current assets36,819,938 14,653,953 51,473,891
Noncurrent assets:
Nondepreciable capital assets 28,758,323 6,683,387 35,441,710
Depreciable capital assets (net)54,918,335 41,657,311 96,575,646
Total noncurrent assets83,676,658 48,340,698 132,017,356
Total assets120,496,596 62,994,651 183,491,247
Liabilities:
Current liabilities:
Accounts payable1,574,117 1,295,271 2,869,388
Salaries payable178,366 57,994 236,360
Accrued interest payable980,498 184,680 1,165,178
Contracts payable126,537 200,234 326,771
Due to other governments21,443 123,775 145,218
Deposits payable 28,336 6,249 34,585
Taxes payable 48,267 - 48,267
Unearned revenue1,070 57,091 58,161
Compensated absences payable295,378 76,200 371,578
Bonds payable6,830,000 1,495,000 8,325,000
Total current liabilities10,084,012 3,496,494 13,580,506
Noncurrent liabilities:
Compensated absences payable2,658,398 685,797 3,344,195
Bonds payable, net of
unamortized discount42,525,874 9,637,388 52,163,262
Total noncurrent liabilities45,184,272 10,323,185 55,507,457
Total liabilities55,268,284 13,819,679 69,087,963
Net assets:
Invested in capital assets, net of related debt34,320,784 37,240,476 71,561,260
Restricted for debt service2,145,488 - 2,145,488
Unrestricted28,762,040 11,934,496 40,696,536
Total net assets65,228,312$ 49,174,972$ 114,403,284$
Primary Government
The accompanying notes are an integral part of these financial statements.
21
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2004
Expenses
Functions/Programs
Primary government:
Governmental activities:
General government 6,934,045$
Public safety 11,063,767
Public works 5,834,490
Parks 4,248,060
Interest on long-term debt2,399,682
Total government activities30,480,044
Business-type activities:
Utilities 7,801,580
Liquor 9,110,888
Aquatic Center 701,768
Golf Course 3,508,741
Community Activity Centers3,850,192
Total business-type activities24,973,169
Total primary government 55,453,213$
22
The accompanying notes are an integral part of these financial statements.
Statement 2
OperatingCapital
Charges forGrants andGrants andGovernmentalBusiness-type
ServicesContributionsContributionsActivitiesActivitiesTotal
454,603$ 142,310$ 50,000$ (6,287,132)$ -$ (6,287,132)$
4,634,744 787,906 524,883 (5,116,234) - (5,116,234)
186,850 195,000 3,618,064 (1,834,576) - (1,834,576)
561,548 29,592 - (3,656,920) - (3,656,920)
- - - (2,399,682) - (2,399,682)
5,837,745 1,154,808 4,192,947 (19,294,544) - (19,294,544)
9,875,078 111,774 - - 2,185,272 2,185,272
10,030,067 - - - 919,179 919,179
764,134 - - - 62,366 62,366
3,538,122 - - - 29,381 29,381
3,254,012 26,673 - - (569,507) (569,507)
27,461,413 138,447 - - 2,626,691 2,626,691
33,299,158$ 1,293,255$ 4,192,947$ (19,294,544) 2,626,691 (16,667,853)
General revenues:
Property taxes17,865,757 - 17,865,757
Tax increment collections6,761,934 - 6,761,934
Franchise taxes450,956 - 450,956
Unrestricted investment earnings443,074 227,167 670,241
Gain on disposal of capital assets- 6,490 6,490
Transfers655,227 (655,227) -
Total general revenues and transfers26,176,948 (421,570) 25,755,378
Change in net assets6,882,404 2,205,121 9,087,525
Net assets - beginning58,345,908 46,969,851 105,315,759
Net assets - ending65,228,312$ 49,174,972$ 114,403,284$
Net (Expense) Revenue and
Changes in Net Assets
23
Program Revenues
This page left blank intentionally.
24
CITY OF EDINA, MINNESOTA
BALANCE SHEET Statement 3
GOVERNMENTAL FUNDS
December 31, 2004
Housing &OtherTotal
DebtRedevelopmentGovernmentalGovernmental
GeneralServiceConstructionAuthorityRevolvingFundsFunds
Assets
Cash and cash equivalents8,147$ 23,104$ -$ 5,264$ -$ -$ 36,515$
Investments - unrestricted10,009,717 1,496,627 - 12,929,578 8,900,992 615,088 33,952,002
Accounts receivable405,613 - - 13,800 2,293 116,824 538,530
Accrued interest - - - 59,804 22,305 5,219 87,328
Special assessments receivable- - - - 3,236,382 - 3,236,382
Due from other funds704,449 622,172 - 4,382 - 73,004 1,404,007
Due from other governments169,484 3,585 - 42,784 287,305 5,768 508,926
Prepaid items390,771 - - - - - 390,771
Total assets 11,688,181$ 2,145,488$ -$ 13,055,612$ 12,449,277$ 815,903$ 40,154,461$
Liabilities and fund balances
Liabilities:
Accounts payable672,895$ -$ 45,411$ 611,395$ 216,410$ 28,006$ 1,574,117$
Salaries payable177,038 - - - 408 920 178,366
Contracts payable - - 58,298 - 68,239 - 126,537
Due to other funds204,382 - 2,594,835 - 669,032 4,449 3,472,698
Due to other governments7,040 - - 14,403 - - 21,443
Deposits payable10,000 - 12,925 - 5,411 - 28,336
Taxes payable- - - - 48,267 - 48,267
Deferred revenue- - - - 3,188,115 1,070 3,189,185
Total liabilities1,071,355 - 2,711,469 625,798 4,195,882 34,445 8,638,949
Fund balance (deficit):
Reserved for:
Prepaid items390,771 - - - - - 390,771
Encumbrances- - 973,700 - 23,433 - 997,133
Special projects- - - - 322,819 - 322,819
Debt service- 2,145,488 - - - - 2,145,488
Unreserved:
Designated, reported in:
General Fund10,226,055 - - - - - 10,226,055
Capital Project Funds- - - - 7,907,143 - 7,907,143
Undesignated, reported in:
Special Revenue Funds- - - - - 781,458 781,458
Capital Project Funds- - (3,685,169) 12,429,814 - - 8,744,645
Total fund balance (deficit)10,616,826 2,145,488 (2,711,469) 12,429,814 8,253,395 781,458 31,515,512
Total liabilities and
fund balances11,688,181$ 2,145,488$ -$ 13,055,612$ 12,449,277$ 815,903$ 40,154,461$
Fund balance reported above 31,515,512$
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 funds83,676,658
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds3,188,115
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds.(53,151,973)
Net assets of governmental activities 65,228,312$
The accompanying notes are an integral part of these financial statements.
25
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND Statement 4
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2004
Housing &OtherTotal
DebtRedevelopmentGovernmentalGovernmental
Revenues:GeneralServiceConstructionAuthorityRevolvingFundsFunds
General property taxes15,635,440$ 2,230,317$ -$ -$ -$ -$ 17,865,757$
Tax increment collections- - 6,761,934 - - 6,761,934
Special assessments- - - - 966,879 - 966,879
Franchise fees- - - - - 450,956 450,956
License and permits2,247,759 - - - - - 2,247,759
Intergovernmental960,000 - 2,319,647 - 524,883 129,010 3,933,540
Charges for services2,227,955 - - - 51,347 - 2,279,302
Fines and forfeitures863,073 - - - - - 863,073
Investment income80,223 6,653 - 157,986 177,960 20,252 443,074
Sale and rental of property385,007 - - - 700 - 385,707
Other revenues124,671 - - 23 135,538 33,904 294,136
Total revenues22,524,128 2,236,970 2,319,647 6,919,943 1,857,307 634,122 36,492,117
Expenditures:
Current:
General government3,606,498 - - 1,049,696 17,834 539,441 5,213,469
Public safety10,840,514 - - - 284,874 - 11,125,388
Public works4,230,332 - - - 156,337 - 4,386,669
Parks2,853,092 - - - 101,280 - 2,954,372
Capital outlay:
General government21,058 - - - 3,333,909 - 3,354,967
Public safety215,643 - - - 945,626 - 1,161,269
Public works475,685 - 1,848,725 - 398,795 - 2,723,205
Parks38,545 - - - 494,335 - 532,880
Debt service:
Bond principal - 6,450,000 - - - - 6,450,000
Interest and fiscal charges- 2,478,587 - - 5,704 - 2,484,291
Total expenditures22,281,367 8,928,587 1,848,725 1,049,696 5,738,694 539,441 40,386,510
Revenues over
(under) expenditures242,761 (6,691,617) 470,922 5,870,247 (3,881,387) 94,681 (3,894,393)
Other financing sources (uses):
Transfers in- 6,660,376 840,719 - 866,500 - 8,367,595
Transfers out- - - (6,660,376) (1,051,992) - (7,712,368)
Total other financing
sources (uses)- 6,660,376 840,719 (6,660,376) (185,492) - 655,227
Net increase (decrease)
in fund balance242,761 (31,241) 1,311,641 (790,129) (4,066,879) 94,681 (3,239,166)
Fund balance
(deficit) - January 110,374,065 2,176,729 (4,023,110) 13,219,943 12,320,274 686,777 34,754,678
Fund balance
(deficit) - December 3110,616,826$ 2,145,488$ (2,711,469)$ 12,429,814$ 8,253,395$ 781,458$ 31,515,512$
The accompanying notes are an integral part of these financial statements.
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, 2004
Amounts reported for governmental activities in the
statement of activities (page 22-23) are different because:
Net changes in fund balances - total governmental funds (page 26)(3,239,166)$
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.3,381,376
The effect of disposals of capital assets is to decrease net assets(190,354)
Revenues in the statement of activities that do not provide current
financial resources (property tax and special assessment receivables)
are not reported as revenues in the funds.331,538
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.6,636,735
Some expenses reported in the statement of activities do not require the
use of current financial resources (accrued interest and compensated
absences payables) and, therefore, are not reported as expenditures
in governmental funds.(37,725)
Change in net assets of governmental activities (page 23)6,882,404$
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, 2004
Other
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Assets:
Current assets:
Cash and cash equivalents1,993$ 5,543$ -$ -$ 11,287$ 18,823$
Investments4,078,874 - - - 4,658,390 8,737,264
Accounts receivable:
Accounts- 1,710 - 80 136,137 137,927
Customers 2,294,010 - - - - 2,294,010
Interest5,087 - - - 39,529 44,616
Special assessments163,798 - - - - 163,798
Net accounts receivable2,462,895 1,710 - 80 175,666 2,640,351
Due from other funds1,115,000 680,000 644,477 - - 2,439,477
Due from other governments7,714 - - - - 7,714
Inventory15,506 1,100,953 - 15,517 16,968 1,148,944
Total current assets7,681,982 1,788,206 644,477 15,597 4,862,311 14,992,573
Noncurrent assets:
Deferred charges15,182 - 4,246 7,813 4,925 32,166
Net capital assets33,311,362 1,495,150 2,513,617 6,420,127 4,600,442 48,340,698
Total noncurrent assets33,326,544 1,495,150 2,517,863 6,427,940 4,605,367 48,372,864
Total assets41,008,526 3,283,356 3,162,340 6,443,537 9,467,678 63,365,437
Liabilities:
Current liabilities:
Accounts payable863,968 292,975 25,400 30,938 81,990 1,295,271
Salaries payable12,241 14,764 339 13,330 17,320 57,994
Accrued interest payable65,182 - 27,916 77,287 14,295 184,680
Contracts payable189,960 - 4,542 - 5,732 200,234
Due to other funds- - - 370,786 - 370,786
Due to other governments2,477 109,962 61 5,272 6,003 123,775
Compensated absences payable 17,652 13,632 - 21,362 23,554 76,200
Deposits payable- - - 6,249 - 6,249
Deferred revenue- 2,857 - 2,434 51,800 57,091
Bonds payable - current645,000 - 95,000 560,000 195,000 1,495,000
Total current liabilities1,796,480 434,190 153,258 1,087,658 395,694 3,867,280
Noncurrent liabilities:
Bonds payable, net of
unamortized discounts4,192,355 - 1,292,194 3,311,896 840,943 9,637,388
Compensated absences payable158,863 122,687 - 192,254 211,993 685,797
Total noncurrent liabilities4,351,218 122,687 1,292,194 3,504,150 1,052,936 10,323,185
Total liabilities6,147,698 556,877 1,445,452 4,591,808 1,448,630 14,190,465
Net assets:
Invested in capital assets,
net of related debt28,489,189 1,495,150 1,130,669 2,556,044 3,569,424 37,240,476
Unrestricted6,371,639 1,231,329 586,219 (704,315) 4,449,624 11,934,496
Total net assets34,860,828$ 2,726,479$ 1,716,888$ 1,851,729$ 8,019,048$ 49,174,972$
Business-type Activities - Enterprise Funds
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, 2004
Other
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Operating revenues:
Sales - liquor-$ 10,030,067$ -$ -$ -$ 10,030,067$
Sales - retail- - 2,800 229,619 89,457 321,876
Sales - utilities9,302,019 - - - - 9,302,019
Sales - concessions- - 101,017 289,929 28,328 419,274
Memberships- - 439,393 124,906 93,825 658,124
Admissions- - 196,881 291,387 463,143 951,411
Building rental- - 21,770 71,549 1,332,995 1,426,314
Rental of equipment- - - 340,930 72,643 413,573
Greens fees- - - 1,808,340 180,530 1,988,870
Other fees171,336 - 2,273 380,962 993,091 1,547,662
Total operating revenues9,473,355 10,030,067 764,134 3,537,622 3,254,012 27,059,190
Operating expenses:
Cost of sales and services14,518 7,438,628 27,703 304,140 39,847 7,824,836
Personal services1,230,128 1,059,886 234,765 1,661,162 1,778,090 5,964,031
Contractual services4,304,985 333,992 121,344 436,887 1,129,550 6,326,758
Commodities608,640 51,199 49,207 345,510 270,037 1,324,593
Central Services360,617 154,574 25,542 122,664 149,666 813,063
Depreciation1,118,097 72,609 185,692 476,592 429,763 2,282,753
Total operating expenses7,636,985 9,110,888 644,253 3,346,955 3,796,953 24,536,034
Operating income (loss)1,836,370 919,179 119,881 190,667 (542,941) 2,523,156
Nonoperating revenues (expenses):
Intergovernmental111,774 - - - - 111,774
Investment income69,179 - - - 157,988 227,167
Donations- - - - 26,673 26,673
Miscellaneous 401,723 - - 500 - 402,223
Interest and fiscal charges(158,451) - (56,410) (156,219) (28,758) (399,838)
Interest on capital lease- - - (77) (893) (970)
Gain (loss) on sale
of capital asset827 - - 5,663 (21,342) (14,852)
Amortization of bond discount(6,144) - (1,105) (5,490) (2,246) (14,985)
Total nonoperating
revenues (expenses)418,908 - (57,515) (155,623) 131,422 337,192
Income (loss) before transfers2,255,278 919,179 62,366 35,044 (411,519) 2,860,348
Transfers:
Transfers in13,843 - - - 430,430 444,273
Transfers out(100,000) (999,500) - - - (1,099,500)
Total transfers (86,157) (999,500) - - 430,430 (655,227)
Change in net assets2,169,121 (80,321) 62,366 35,044 18,911 2,205,121
Net assets - January 1 32,691,707 2,806,800 1,654,522 1,816,685 8,000,137 46,969,851
Net assets - December 3134,860,828$ 2,726,479$ 1,716,888$ 1,851,729$ 8,019,048$ 49,174,972$
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, 2004
Other
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Cash flows from operating activities:
Receipts from customers and users9,017,530$ 10,043,443$ 703,442$ 3,533,388$ 3,237,506$ 26,535,309$
Payment to suppliers(4,552,583) (7,923,496) (194,365) (984,512) (1,612,144) (15,267,100)
Payment to employees(1,257,810) (1,078,996) (234,426) (1,672,091) (1,834,087) (6,077,410)
Net cash provided by
(used in) operating activities3,207,137 1,040,951 274,651 876,785 (208,725) 5,190,799
Cash flows from noncapital financing activities:
State grant111,774 - - - - 111,774
Miscellaneous revenue401,723 - - 500 - 402,223
Transfer (to) from Enterprise Funds- (233,000) - - 233,000 -
Transfer (to) from Capital Project Funds(86,157) (766,500) - - 197,430 (655,227)
Donations- - - - 26,673 26,673
Net cash provided by (used in)
noncapital financing activities427,340 (999,500) - 500 457,103 (114,557)
Cash flows from capital and related financing activities:
Acquisition of capital assets(6,918,329) (40,348) (121,781) (500,536) (219,791) (7,800,785)
Sale of capital assets1,107,208 - - 330,925 - 1,438,133
Principal paid on bonds(635,000) - (95,000) (545,000) (180,000) (1,455,000)
Principal paid on capital lease- - - (2,800) (32,200) (35,000)
Interest paid on bonds(165,215) - (57,870) (164,510) (30,933) (418,528)
Interest paid on capital lease- - - (77) (893) (970)
Net cash provided by (used in)
capital and related financing activities(6,611,336) (40,348) (274,651) (881,998) (463,817) (8,272,150)
Cash flows from investing activities:
Proceeds from sales of investments2,905,928 - - - 59,331 2,965,259
Investment income72,924 - - - 160,668 233,592
Net cash flows provided by
(used in) investing activities2,978,852 - - - 219,999 3,198,851
Net increase (decrease)
in cash and cash equivalents1,993 1,103 - (4,713) 4,560 2,943
Cash and cash equivalents - January 1- 4,440 - 4,713 6,727 15,880
Cash and cash equivalents - December 311,993$ 5,543$ -$ -$ 11,287$ 18,823$
30
The accompanying notes are an integral part of these financial statements.
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Other
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 1,836,370$ 919,179$ 119,881$ 190,667$ (542,941)$ 2,523,156$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation1,118,097 72,609 185,692 476,592 429,763 2,282,753
Changes in assets and liabilities:
Decrease (increase) in receivables238,812 (210) - 7,293 (2,368) 243,527
Decrease (increase) in
special assessments(33,345) - - - - (33,345)
Decrease (increase) in
due from other funds(660,510) 12,955 (60,692) - 1,291 (706,956)
Decrease (increase) in
due from governments(782) - - - - (782)
Decrease (increase) in inventory50,957 (52,171) - 1,513 894 1,193
Increase (decrease) in accounts payable667,870 104,990 24,920 (105,372) 12,219 704,627
Increase (decrease) in salaries payable(37,109) (36,410) 339 (32,203) (55,297) (160,680)
Increase (decrease) in contracts payable146,178 - 4,542 (12,530) 5,732 143,922
Increase (decrease) in due to other funds- - - 338,702 (42,644) 296,058
Increase (decrease) in
due to other governments(34,793) 2,078 (31) 49 (536) (33,233)
Increase (decrease) in
compensated absences9,427 17,300 - 21,274 (700) 47,301
Increase (decrease) in deposits(94,035) - - 2,327 - (91,708)
Increase (decrease) in deferred revenue- 631 - (11,527) (14,138) (25,034)
Total adjustments1,370,767 121,772 154,770 686,118 334,216 2,667,643
Net cash provided by
(used in) operating activities3,207,137$ 1,040,951$ 274,651$ 876,785$ (208,725)$ 5,190,799$
Noncash investing, capital and financing activities:
Increase (decrease) in fair
value of investments5,904$ -$ -$ -$ (41,338)$ (35,434)$
31
The accompanying notes are an integral part of these financial statements.
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS Statement 9
AGENCY FUNDS
December 31, 2004
Agency Funds
Assets
Cash 262,786$
Investments 40,000
Due from other governmental units172,006
Total assets474,792$
Liabilities
Accounts payable 17,993$
Salaries payable 817
Contracts payable 33,945
Due to other governmental units422,037
Total liabilities474,792$
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
33
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Edina (the City) 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 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 have 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. 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, 2004
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. Aggregated information for the
remaining nonmajor governmental and enterprise funds is reported in a single column 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 City considers all revenues, except reimbursement grants, to
be available if they are collected within 60 days 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 compensated absences and
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. Grants and similar items are recognized only when all eligibility
requirements imposed by the provider have been met. All other revenue items are considered to
be measurable and available only when cash is received by the City.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
35
The City 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 capital projects construction fund accounts for the various special assessment and state
aid projects throughout the City.
The capital projects 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 capital projects revolving fund was established to provide financing for capital
improvements as designated in the City’s capital improvement budget.
The City 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 City reports the following fund type:
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 City has elected not to follow subsequent private-sector guidance.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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 City’s
policy to use restricted resources first, then unrestricted resources as they are needed.
Depreciation expense can be specifically identified by function and is included in the direct
expenses of each function. Interest on long-term debt is considered an indirect expense and is
reported separately on the Statement of Activities.
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, 2004
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, 2004 are planned to be
eliminated in 2005. 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, 2004
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 funds are completely offset by deferred revenues.
G. INVENTORIES, PREPAID ITEMS AND DEFERRED CHARGES
Inventories of the Proprietary Funds are stated at cost and 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, 2004
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 also reported in the proprietary fund financial statements but not in the
governmental fund 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 is depreciated using the straight line
method over the following estimated useful lives:
Assets Life
Golf course 10 - 35 years
Land improvements 20 – 50 years
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. According to City policy, vested sick leave benefits are
liquidated into a health care savings plan upon separation.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
40
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
applicable governmental activities, business-type activities, or proprietary fund type statement of
net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
over the life of the bond using the straight-line method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are reported as deferred charges and
amortized over the term of the related debt.
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.
Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
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. NET ASSETS
Net assets represent the difference between assets and liabilities in the government-wide and
proprietary fund financial statements. Net assets invested in capital assets, net of related debt,
consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of
any long-term debt used to build or acquire the capital assets. Net assets are reported as restricted
when there are limitations imposed on their use through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
41
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.
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 difference are as follows:
Bonds payable49,650,000$
Plus: issuance premium30,780
Less: issuance discount(324,906)
Less: deferred charge for issuance costs(138,175)
Accrued interest payable980,498
Compensated absences2,953,776
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities53,151,973$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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 difference are as follows:
Another element of that reconciliation states that “The net effect of disposals of capital assets
is to decrease net assets.” The details of this difference are as follows:
Capital outlay6,462,099$
Depreciation expense(3,080,723)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities3,381,376$
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
increases financial resources. Thus, the change
in net assets differs from the change in fund
balance by the cost of the capital assets sold116,433$
The statement of activities reports losses arising from
the disposal of existing capital assets. Conversely,
governmental funds do not report any gain or loss
on a disposal of capital assets73,921
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities190,354$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
43
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 difference are as
follows:
Note 2 DEPOSITS AND INVESTMENTS
DEPOSITS
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 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, 2004, 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.
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, 2004, including Agency Funds of $262,786, are as follows:
CarryingBank
AmountBalance
Checking accounts50,291$ 793,600$
Cash on hand16,185 -
Cash with trustee251,648 251,648
318,124$ 1,045,248$
Principal repayments:
General obligation debt6,450,000$
Leases payable229,585
Deferred charges(42,850)
Net adjustment to increase net changes
in fund balances - total governmental
funds to arrive at changes in net
assets of governmental activities6,636,735$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
44
INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies;
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above;
c) General obligations 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.
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.
The investment balances, including Agency Funds of $40,000, at December 31, 2004 were as follows:
Credit RiskFair
Category 1Value
Commercial paper23,395,872$ 23,395,872$
Certificates of deposit662,444 662,444
Government securities:
United States Treasury Notes1,568,485 1,568,485
Federal National Mortgage Association6,497,152 6,497,152
Government National Mortgage Association126,663 126,663
Federal Home Loan Mortgage Corporation2,536,740 2,536,740
Federal Home Loan Bank2,479,329 2,479,329
SBA pool964,915 964,915
Municipal bonds1,400,000 1,400,000
39,631,600$ 39,631,600
Investments not subject to categorization:
Money market investments3,097,666
Total investments42,729,266$
Securities Type
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
45
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2004 is as follows:
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
associated with each network categorized as major, before the end of the phase-in period.
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental activities:
Capital assets not being depreciated:
Land11,849,474$ 1,004,910$ -$ 12,854,384$
Investment in joint venture1,452,465 - - 1,452,465
Construction in progress24,405,272 6,197,277 (16,151,075) 14,451,474
Total capital assets not being depreciated37,707,211 7,202,187 (16,151,075) 28,758,323
Capital assets being depreciated:
Land improvements28,412,076 437,172 - 28,849,248
Buildings and structures19,030,966 10,134,801 (687,187) 28,478,580
Furniture and office equipment617,241 3,860,802 (60,164) 4,417,879
Vehicles and equipment10,362,763 766,376 (606,822) 10,522,317
Parks10,572,827 211,836 (5,988) 10,778,675
Total capital assets being depreciated68,995,873 15,410,987 (1,360,161) 83,046,699
Less accumulated depreciation for:
Land improvements(9,897,446) (1,007,773) - (10,905,219)
Buildings and structures(6,714,130) (616,964) 589,333 (6,741,761)
Furniture and office equipment(458,794) (172,672) 38,680 (592,786)
Vehicles and equipment(4,840,532) (887,238) 536,006 (5,191,764)
Parks(4,306,546) (396,076) 5,788 (4,696,834)
Total accumulated depreciation(26,217,448) (3,080,723) 1,169,807 (28,128,364)
Total capital assets being depreciated, net42,778,425 12,330,264 (190,354) 54,918,335
Governmental activities capital assets, net 80,485,636$ 19,532,451$ (16,341,429)$ 83,676,658$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
46
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress1,493,449 5,524,700 (1,423,727) 5,594,422
Total capital assets not being depreciated2,582,414 5,524,700 (1,423,727) 6,683,387
Capital assets being depreciated:
Golf course4,615,307 - - 4,615,307
Land improvements3,249,771 35,776 - 3,285,547
Buildings and structures15,280,597 422,670 (107,386) 15,595,881
Furniture and office equipment79,197 70,239 - 149,436
Vehicles and equipment4,364,579 474,105 (170,257) 4,668,427
Distribution & collection system32,524,634 390,391 - 32,915,025
Storm sewers12,528,942 467,721 - 12,996,663
Wells1,963,991 415,184 - 2,379,175
Lease property capital lease468,580 - - 468,580
Total capital assets being depreciated75,075,598 2,276,086 (277,643) 77,074,041
Less accumulated depreciation for:
Golf course(1,399,286) (152,738) - (1,552,024)
Land improvements(1,472,029) (133,052) - (1,605,081)
Buildings and structures(6,837,448) (643,860) 92,258 (7,389,050)
Furniture and office equipment(49,408) (15,180) - (64,588)
Vehicles and equipment(2,195,375) (328,013) 155,683 (2,367,705)
Distribution & collection system(14,762,690) (666,640) - (15,429,330)
Storm sewers(5,213,204) (255,310) - (5,468,514)
Wells(999,489) (72,369) - (1,071,858)
Lease property capital lease(452,989) (15,591) - (468,580)
Total accumulated depreciation(33,381,918) (2,282,753) 247,941 (35,416,730)
Total capital assets being depreciated, net41,693,680 (6,667) (29,702) 41,657,311
Business-type activities capital assets, net44,276,094$ 5,518,033$ (1,453,429)$ 48,340,698$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
47
Depreciation expense was charged to functions/programs of the primary government as follows:
CONSTRUCTION COMMITMENTS
At December 31, 2004, the City had construction project contracts in progress. The commitments related
to the remaining contract balances are summarized as follows:
Governmental activities:
General government278,383$
Public safety393,820
Public works910,583
Parks1,497,937
Total depreciation expense - governmental activities3,080,723$
Business-type activities:
Utilities1,118,097$
Liquor72,609
Aquatic Center185,692
Golf Course476,592
Arena317,575
Art Center27,960
Edinborough Park/Centennial Lakes84,228
Total depreciation expense - business-type activities2,282,753$
ContractRemaining
Project #Project DescriptionAmountCommitment
04-4 ENGStreet Reconstruction1,936,791$ 896,324$
04-8 ENGSidewalk Construction157,370 77,375
03-7 PWSCADA Infrastructure60,473 29,568
04-2 PWLift Station #14757,777 197,088
04-3 PKAquatic Center172,000 81,150
Total1,281,505$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
48
Note 4 CAPITAL LEASE
The City has, in the past, obtained capital assets through capital leases. However, all obligations under
capital leases were paid during fiscal year 2004, and therefore, the City has no liability for capital leases as
of December 31, 2004.
Note 5 LONG-TERM DEBT
The City has four types of bonded debt outstanding at December 31, 2004: 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, 2004, the governmental long-term bonded debt of the financial reporting entity
consisted of the following:
Final
InterestIssueMaturityOriginalPayable
RatesDateDateIssue12/31/2004
Tax Increment Bonds:
Tax Increment Refunding Taxable
Bonds, Series 1996A5.85-6.253/1/19962/1/200911,250,000$ 7,075,000$
Tax Increment Bonds, Series 1997B4.50-5.204/1/19972/1/20135,090,000 4,115,000
Tax Increment Bonds, Series 2000A4.30-4.809/6/20002/1/20112,620,000 1,960,000
Tax Increment Bonds, Series 2000C4.50-4.659/6/20002/1/200915,820,000 11,965,000
Tax Increment Bonds, Series 2002B3.00%8/5/20022/1/20091,400,000 1,400,000
Tax Increment Taxable Refunding
Bonds of 2003B1.128-1.7493/1/20032/1/20066,570,000 4,245,000
Total Tax Increment Bonds42,750,000 30,760,000
General Obligation Bonds:
General Obligation - Park &
Recreation, Series 1996B4.25-5.758/1/19962/1/20178,090,000 6,300,000
General Obligation Equipment
Certificates, Series 2003A1.05-2.043/1/20032/1/20081,540,000 995,000
Total General Obligation Bonds9,630,000 7,295,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20024.00-5.251/1/20022/1/202112,410,000 11,595,000
Total bonded indebtedness - governmental activities64,790,000$ 49,650,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
49
BUSINESS-TYPE ACTIVITIES
Annual debt service requirements to maturity for the City’s bonds are as follows:
Final
InterestIssueMaturityOriginalPayable
RatesDateDateIssue12/31/2004
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70-4.45 5/3/19991/1/20133,270,000$ 2,795,000$
Recreational Facility Bonds, Series 2001A2.25-4.65 11/1/20011/1/20174,620,000 3,530,000
Utility Revenue Bonds, Series 1999A3.20-4.205/3/19992/1/20093,600,000 1,950,000
Utility Revenue Bonds, Series 2003C1.10-3.553/1/20032/1/20133,200,000 2,910,000
Total bonded indebtedness - business-type activities14,690,000$ 11,185,000$
PrincipalInterestPrincipalInterestPrincipalInterest
20055,465,000$ 1,327,983$ 905,000$ 352,863$ 460,000$ 558,286$
20064,990,000 1,124,578 520,000 327,550 480,000 537,336
20074,655,000 901,483 520,000 305,338 505,000 515,174
20085,585,000 638,940 550,000 281,738 525,000 491,999
20095,910,000 340,631 425,000 257,863 550,000 467,811
2010-20144,155,000 374,144 2,500,000 901,126 3,155,000 1,922,783
2015-2019- - 1,875,000 164,445 4,010,000 1,035,202
2020-2021- - - - 1,910,000 101,588
Total30,760,000$ 4,707,759$ 7,295,000$ 2,590,923$ 11,595,000$ 5,630,179$
PrincipalInterest
20051,495,000$ 375,900$
20061,545,000 328,868
20071,595,000 276,999
20081,560,000 221,821
20091,600,000 163,543
2010-20143,135,000 320,110
2015-2017255,000 18,045
Total11,185,000$ 1,705,286$
Year Ending
December 31
Year Ending
December 31
Revenue Bonds
Governmental Activities
Business-type Activities
GeneralPublic ProjectTax
Increment BondsObligation BondsRevenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
50
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2004, was as follows:
For governmental activities, compensated absences are generally liquidated by the general fund.
BeginningEndingDue Within
BalanceAdditionsReductionsBalanceOne Year
Governmental activities:
Bonds payable:
Tax increment bonds35,900,000$ -$ (5,140,000)$ 30,760,000$ 5,465,000$
General obligation bonds8,165,000 - (870,000) 7,295,000 905,000
Public project revenue bonds12,035,000 - (440,000) 11,595,000 460,000
Less deferred amounts:
Discount on bonds(365,535) - 40,629 (324,906) -
Premiums59,787 - (29,007) 30,780 -
Total bonds payable55,794,252 - (6,438,378) 49,355,874 6,830,000
Capital lease229,585 - (229,585) - -
Compensated absences2,819,820 1,188,679 (1,054,723) 2,953,776 295,378
Governemental activity
Long-term liabilities58,843,657$ 1,188,679$ (7,722,686)$ 52,309,650$ 7,125,378$
Business-type activities:
Revenue bonds payable12,640,000$ -$ (1,455,000)$ 11,185,000$ 1,495,000$
Less deferred amounts:
Discount on bonds(62,023) - 9,411 (52,612) -
Total bonds payable12,577,977 - (1,445,589) 11,132,388 1,495,000
Capital lease35,000 - (35,000) - -
Compensated absences714,696 308,354 (261,053) 761,997 76,200
Business-type activity
Long-term liabilities13,327,673$ 308,354$ (1,741,642)$ 11,894,385$ 1,571,200$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
51
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 2004 is computed as follows:
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 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
December 31, 2004
Market Value (after fiscal disparities)8,033,679,900$
Debt Limit (2% of Market Value)160,673,598$
Amount of debt applicable to debt limit:
Total bonded debt60,835,000$
Less:
Tax increment bonds(30,760,000)
Public project revenue bonds(11,595,000)
Revenue bonds(11,185,000)
Cash and investments in related Debt Service Funds(2,141,903)
Total debt applicable to debt limit 5,153,097$
Legal debt margin 155,520,501$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
52
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, 2004
53
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, 2004, 2003 and 2002 were $925,715, $850,338 and
$1,050,598, respectively. The City’s contributions to the Public Employees Police and Fire Fund
for the years ending December 31, 2004, 2003 and 2002 were $358,368, $324,460 and $485,138,
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, 2004
54
Total contributions made by the City during fiscal year 2004 were:
Percentage of
AmountCovered PayrollRequired
Employees EmployerEmployeesEmployer Rates
PEDCP $530 $5305.00%5.00% 5.00%
Note 8 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of internal balances as of December 31, 2004, is as follows:
The City’s interfund receivables and payables eliminate what would have been a negative cash balance.
Payable FundAmount
GeneralConstruction700,000$
Nonmajor governmental fund4,449
Debt ServiceGeneral200,000
Construction99,835
Revolving322,337
Housing & Redevelopment AuthorityGeneral4,382
UtilitiesConstruction1,115,000
LiquorConstruction680,000
Aquatic CenterRevolving273,691
Golf Course370,786
Nonmajor governmental fundRevolving73,004
Total 3,843,484$
Receivable Fund
DebtNonmajor
ServiceConstructionRevolvingUtilitiesBusiness-typeTotal
Transfer out:
HRA Fund6,660,376$ -$ -$ -$ -$ 6,660,376$
Revolving Fund- 840,719 - 13,843 197,430 1,051,992
Utilities Fund- - 100,000 - - 100,000
Liquor Fund- - 766,500 - 233,000 999,500
6,660,376$ 840,719$ 866,500$ 13,843$ 430,430$ 8,811,868$
Transfer In:
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
55
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. The Liquor fund transferred $766,500 to the Revolving fund to fund ongoing capital improvement
needs, as well as $103,000 and $130,000 to the Arena and Art Center funds, respectively, to
subsidize operations.
Note 9 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
Districts number 1200 (50th and France Commercial Area) is a redevelopment district established in 1974
pursuant to Minnesota Statutes with a termination date of 2009.
District number 1201 (Southeast Edina Redevelopment District – Edinborough) is a redevelopment district
established in 1977 pursuant to Minnesota Statutes with a termination date of 2009.
District number 1202 (Grandview Commercial Area) is a redevelopment district established in 1984
pursuant to Minnesota Statutes with a termination date of 2010.
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a redevelopment
district established in 1988 pursuant to Minnesota Statutes with a termination date of 2016.
District number 1207 (70th and Cahill Economic Development District) is an economic district established
in 1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment previously collected
is available for expenditures within the larger development district that includes the Wooddale – Valley
View commercial area. Tax capacity and debt for this district is not included in the following schedule as
county reports no longer indicate captured tax capacity for this district and no debt is outstanding.
The following table reflects values as of December 31, 2004:
TIF #1200TIF #1201TIF #1202TIF #1203Total
Original tax capacity112,826$ 94,328$ 171,533$ 229,691$ 608,378$
Current tax capacity1,004,506 2,709,877 1,030,231 2,812,828 7,557,442
Tax capacity change891,680 2,615,549 858,698 2,583,137 6,949,064
Captured tax capacity value:
Retained captured tax capacity 891,680$ 2,615,549$ 858,698$ 2,583,137$ 6,949,064$
Total bonds issued
(general obligation)5,360,000$ 22,445,000$ 9,637,555$ 35,744,724$ 73,187,279$
Amounts redeemed4,500,000 19,060,000 6,277,555 12,589,724 42,427,279
Outstanding bonds at
December 31, 2004860,000$ 3,385,000$ 3,360,000$23,155,000$30,760,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
56
Note 10 DEFICIT FUND BALANCES
The City has a deficit fund balance at December 31, 2004 as follows:
Major Fund Amount
Capital Project Funds:
Construction $2,711,469
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
57
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
$5,000 per individual for the public official bond, and a $50,000 annual maximum for the public
employee’s blanket bond.
The City covers all losses above the per occurrence and annual deductibles through 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 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, 2004.
D. TAX INCREMENT DISTRICTS
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, 2004, the City of Edina had 3 series of Housing and Health Care Revenue Bonds, with
an aggregate principal amount payable of $30,285,000. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
58
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 $1,452,465. Complete financial statements for PSTF can be
obtained from the City of Edina, 4801 West 50th Street, Edina, MN 55424.
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND BALANCE
At December 31, 2004 the City had designated and reserved portions of its various fund balances through
legal restriction and City Council authorization. A summary of such designations is as follows:
December 31, 2004
General Fund:
Reserved for prepaid items390,771$
Designated for parkland dedication92,744
Designated for unrealized investment gains/losses16,784
Designated for commitments2,560,648
Designated for insurance/severance925,765
Designated for cash flow6,630,114
Debt Service Fund:
Reserved for debt service2,145,488
Construction Fund:
Reserved for encumbrances973,700
Revolving Fund:
Reserved for encumbrances23,433
Reserved for special projects322,819
Designated for capital improvements7,907,143
21,989,409$
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2004
Variance with
2004Final Budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
General property taxes:
Current15,860,373$ 15,860,373$ 15,629,848$ (230,525)$
Penalties and interest15,000 15,000 5,592 (9,408)
Total general property taxes15,875,373 15,875,373 15,635,440 (239,933)
Licenses and permits:2,004,695 2,004,695 2,247,759 243,064
Intergovernmental:
Federal:113,800 113,800 131,769 17,969
State:
Municipal state aid195,000 195,000 195,000 -
Other56,634 56,634 190,852 134,218
State aid - police 300,000 300,000 321,199 21,199
Health programs121,180 121,180 121,180 -
Total intergovernmental786,614 786,614 960,000 173,386
Charges for services:
Building Department2,700 2,700 5,791 3,091
City Clerk- - 12,254 12,254
Fire Department46,800 46,800 37,761 (9,039)
Ambulance fees1,050,000 1,050,000 1,227,400 177,400
Police Department253,800 253,800 251,456 (2,344)
Engineering111,500 111,500 114,887 3,387
Health Department6,000 6,000 7,935 1,935
Planning Department25,500 25,500 21,676 (3,824)
Housing Foundation Contract29,300 29,300 57,666 28,366
HRA Services20,000 20,000 21,017 1,017
Assessing Searches500 500 3,188 2,688
Park Registration75,000 75,000 75,346 346
Senior Center65,000 65,000 103,275 38,275
Other fees13,445 13,445 3,275 (10,170)
50th & France Assessment37,300 37,300 37,300 -
Charges to other funds247,728 247,728 247,728 -
Total charges for services1,984,573 1,984,573 2,227,955 243,382
Fines and forfeits900,000 900,000 863,073 (36,927)
Miscellaneous:
Sale and rental of property286,400 286,400 385,007 98,607
Investment income100,000 100,000 80,223 (19,777)
Donations- - 51,040 51,040
Other5,000 5,000 73,631 68,631
Total miscellaneous391,400 391,400 589,901 198,501
Total revenues21,942,655 21,942,655 22,524,128 581,473
Budgeted Amounts
59
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2004
Variance with
2004Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Expenditures:
General government:
Mayor and Council:
Current:
Personal services31,159$ 31,159$ 30,763$ 396$
Contractual services4,100 4,100 5,107 (1,007)
Commodities1,000 1,000 1,691 (691)
Central services42,000 42,000 44,432 (2,432)
Total mayor and council78,259 78,259 81,993 (3,734)
Administration:
Current:
Personal services724,727 724,727 706,929 17,798
Contractual services137,800 137,800 142,719 (4,919)
Commodities2,400 2,400 3,117 (717)
Central services64,392 64,392 69,148 (4,756)
Total current929,319 929,319 921,913 7,406
Capital outlay5,821 5,821 3,636 2,185
Total administration935,140 935,140 925,549 9,591
Planning:
Current:
Personal services301,779 301,779 298,453 3,326
Contractual services25,420 25,420 11,450 13,970
Commodities1,215 1,215 790 425
Central services42,900 42,900 45,816 (2,916)
Total current371,314 371,314 356,509 14,805
Capital outlay5,035 5,035 5,346 (311)
Total planning376,349 376,349 361,855 14,494
Finance:
Current:
Personal services418,910 418,910 423,592 (4,682)
Contractual services93,100 93,100 82,670 10,430
Commodities2,100 2,100 1,655 445
Central services46,980 46,980 50,486 (3,506)
Total current561,090 561,090 558,403 2,687
Capital outlay5,820 5,820 2,415 3,405
Total finance566,910 566,910 560,818 6,092
Election:
Current:
Personal services87,472 87,472 181,165 (93,693)
Contractual services12,470 12,470 5,618 6,852
Commodities5,126 5,126 9,013 (3,887)
Central services6,324 6,324 7,243 (919)
Total current111,392 111,392 203,039 (91,647)
Capital outlay11,193 11,193 818 10,375
Total election122,585 122,585 203,857 (81,272)
Budgeted Amounts
60
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2004
Variance with
2004Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Assessing:
Current:
Personal services536,121$ 536,121$ 492,383$ 43,738$
Contractual services97,046 97,046 88,144 8,902
Commodities1,918 1,918 3,859 (1,941)
Central services59,148 59,148 63,042 (3,894)
Total current694,233 694,233 647,428 46,805
Capital outlay15,305 15,305 8,843 6,462
Total assessing709,538 709,538 656,271 53,267
Legal and court services:
Current:
Contractual services408,000 408,000 398,858 9,142
Contingencies:
Current:
Personal services- - 20,331 (20,331)
Contractual services119,431 119,431 69,477 49,954
Commodities- - 1,499 (1,499)
Total contingencies119,431 119,431 91,307 28,124
Capital plan appropriation:
Current:
Contractual services50,000 50,000 50,000 -
City's share of special assessment:
Current:
Contractual services27,000 27,000 26,587 413
Human Rights Commission:
Current:
Contractual services80,079 80,079 79,620 459
Suburban Rate Authority:
Current:
Contractual services3,000 3,000 2,617 383
Edina Resource Center
Current:
Contractual services32,400 32,400 33,930 (1,530)
Human Services Planning & Coordination
Current:
Contractual services22,074 22,074 10,868 11,206
Records management:
Current:
Personal services- - 270 (270)
Contractual services26,600 26,600 4,832 21,768
Total records management26,600 26,600 5,102 21,498
Employee programs
Current:
Personal services115,720 115,720 109,904 5,816
Contractual services11,004 11,004 8,747 2,257
Total employee programs126,724 126,724 118,651 8,073
Dial-a-Ride:
Current:
Personal services
Contractual services24,000 24,000 19,673 4,327
Total general government3,708,089 3,708,089 3,627,556 80,533
61
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2004
Variance with
2004Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Public safety:
Police protection:
Current:
Personal services5,049,204$ 5,049,204$ 5,000,128$ 49,076$
Contractual services300,846 300,846 313,193 (12,347)
Commodities66,622 66,622 69,211 (2,589)
Central services725,976 725,976 733,249 (7,273)
Total current6,142,648 6,142,648 6,115,781 26,867
Capital outlay242,018 242,018 147,000 95,018
Total police protection6,384,666 6,384,666 6,262,781 121,885
Fire protection:
Current:
Personal services2,978,966 2,978,966 2,869,783 109,183
Contractual services276,220 276,220 269,263 6,957
Commodities130,050 130,050 135,479 (5,429)
Central services265,440 265,440 299,250 (33,810)
Total current3,650,676 3,650,676 3,573,775 76,901
Capital outlay23,935 23,935 8,811 15,124
Total fire protection3,674,611 3,674,611 3,582,586 92,025
Civil defense:
Current:
Personal services26,922 26,922 26,922 -
Contractual services8,776 8,776 6,632 2,144
Commodities1,309 1,309 - 1,309
Total current37,007 37,007 33,554 3,453
Capital outlay8,102 8,102 15,942 (7,840)
Total civil defense45,109 45,109 49,496 (4,387)
Animal Control:
Current:
Personal services46,781 46,781 43,423 3,358
Contractual services7,698 7,698 9,411 (1,713)
Commodities3,745 3,745 923 2,822
Central services6,684 6,684 6,995 (311)
Total current64,908 64,908 60,752 4,156
Capital outlay6,695 6,695 - 6,695
Total animal control71,603 71,603 60,752 10,851
Public health
Current:
Personal services209,037 209,037 187,878 21,159
Contractual services169,340 169,340 175,444 (6,104)
Commodities2,650 2,650 864 1,786
Central services27,396 27,396 28,932 (1,536)
Total current408,423 408,423 393,118 15,305
Capital outlay11,629 11,629 2,560 9,069
Total public health420,052 420,052 395,678 24,374
62
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2004
Variance with
2004Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Inspections:
Current:
Personal services504,268$ 504,268$ 497,135$ 7,133$
Contractual services71,279 71,279 87,463 (16,184)
Commodities4,200 4,200 3,818 382
Central services72,096 72,096 75,118 (3,022)
Total current651,843 651,843 663,534 (11,691)
Capital outlay15,002 15,002 41,330 (26,328)
Total inspections666,845 666,845 704,864 (38,019)
Total public safety11,262,886 11,262,886 11,056,157 206,729
Public works:
Administration:
Current:
Personal services148,306 148,306 136,173 12,133
Contractual services5,300 5,300 4,004 1,296
Commodities- - 486 (486)
Central services18,852 18,852 20,098 (1,246)
Total administration172,458 172,458 160,761 11,697
Engineering:
Current:
Personal services532,383 532,383 461,549 70,834
Contractual services41,400 41,400 41,106 294
Commodities13,200 13,200 11,172 2,028
Central services71,412 71,412 74,132 (2,720)
Total current658,395 658,395 587,959 70,436
Capital outlay46,750 46,750 23,084 23,666
Total engineering705,145 705,145 611,043 94,102
Supervision and overhead:
Current:
Personal services215,042 215,042 203,130 11,912
Contractual services37,100 37,100 21,294 15,806
Commodities800 800 92 708
Central services135,888 135,888 133,408 2,480
Total supervision and overhead388,830 388,830 357,924 30,906
Street maintenance:
Current:
Personal services1,456,462 1,456,462 1,455,228 1,234
Contractual services633,800 633,800 547,159 86,641
Commodities627,650 627,650 608,757 18,893
Central services512,544 512,544 512,544 -
Total current3,230,456 3,230,456 3,123,688 106,768
Capital outlay131,416 131,416 452,601 (321,185)
Total street maintenance3,361,872 3,361,872 3,576,289 (214,417)
Total public works4,628,305 4,628,305 4,706,017 (77,712)
63
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2004
Variance with
2004Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Parks:
Administration:
Current:
Personal services533,620$ 533,620$ 520,362$ 13,258$
Contractual services29,482 29,482 26,927 2,555
Commodities3,263 3,263 2,329 934
Central services62,460 62,460 67,661 (5,201)
Total current628,825 628,825 617,279 11,546
Capital outlay4,614 4,614 - 4,614
Total administration633,439 633,439 617,279 16,160
Recreation:
Current:
Personal services151,498 151,498 142,286 9,212
Contractual services146,368 146,368 126,909 19,459
Commodities42,462 42,462 45,482 (3,020)
Total recreation340,328 340,328 314,677 25,651
Maintenance:
Current:
Personal services1,285,131 1,285,131 1,238,004 47,127
Contractual services304,017 304,017 254,994 49,023
Commodities157,592 157,592 167,320 (9,728)
Central services248,724 248,724 248,403 321
Total current1,995,464 1,995,464 1,908,721 86,743
Capital outlay31,644 31,644 38,545 (6,901)
Total maintenance2,027,108 2,027,108 1,947,266 79,842
Deer control:
Current:
Contractual services9,000 9,000 12,415 (3,415)
Total deer control9,000 9,000 12,415 (3,415)
Total parks3,009,875 3,009,875 2,891,637 118,238
Total expenditures22,609,155 22,609,155 22,281,367 327,788
Revenues over (under) expenditures(666,500) (666,500) 242,761 909,261
Other financing sources (uses):
Transfer from Enterprise Funds666,500 666,500 - (666,500)
Total financing sources (uses)666,500 666,500 - (666,500)
Net increase (decrease) in fund balance-$ -$ 242,761$ 242,761$
Fund balance - January 1 10,374,065
Fund balance - December 3110,616,826$
64
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2004
65
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, 2004
66
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.
FinalOver
BudgetActualBudget
General Government:
Mayor and Council78,259$ 81,993$ 3,734$
Election122,585 203,857 81,272
Edina Resource Center32,400 33,930 1,530
Public Safety:
Civil defense45,109 49,496 4,387
Inspections666,845 704,864 38,019
Public Works:
Street maintenance3,361,872 3,576,289 214,417
Parks:
Deer control9,000 12,415 3,415
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.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
67
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET Statement 11
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2004
CommunityTotal Nonmajor
DevelopmentSpecial Revenue
AssetsBlock GrantCommunicationFunds
Investments-$ 615,088$ 615,088$
Accounts receivable- 116,824 116,824
Accrued interest receivable- 5,219 5,219
Due from other funds- 73,004 73,004
Due from other governments5,768 - 5,768
Total assets5,768$ 810,135$ 815,903$
Liabilities and Fund Balance
Liabilities:
Accounts payable1,319$ 26,687$ 28,006$
Salaries payable- 920 920
Due to other funds4,449 - 4,449
Deferred revenue- 1,070 1,070
Total liabilities5,768 28,677 34,445
Fund balance:
Unreserved:
Undesignated- 781,458 781,458
Total fund balance- 781,458 781,458
Total liabilities and fund balance5,768$ 810,135$ 815,903$
68
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 12
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2004
CommunityTotal Nonmajor
DevelopmentSpecial Revenue
Revenues:Block GrantCommunicationFunds
Franchise fees-$ 450,956$ 450,956$
Intergovernmental129,010 - 129,010
Investment income- 20,252 20,252
Other- 33,904 33,904
Total revenues129,010 505,112 634,122
Expenditures:
Current:
General government129,010 410,431 539,441
Total expenditures129,010 410,431 539,441
Net increase (decrease) in fund balance- 94,681 94,681
Fund balance - January 1- 686,777 686,777
Fund balance - December 31-$ 781,458$ 781,458$
69
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, 2004
Actual
OriginalFinalAmounts
Revenues:
Intergovernmental171,153$ 171,153$ 129,010$
Total revenues171,153 171,153 129,010
Expenditures:
Current:
General government171,153 171,153 129,010
Net increase (decrease) in fund balance-$ -$ -$
Fund balance - January 1 -
Fund balance - December 31 -$
Budgeted Amounts
70
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
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
71
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET ASSETS Statement 14
NONMAJOR PROPRIETARY FUNDS
December 31, 2004
Total
ArtEdinborough ParkNonmajor
AssetsArenaCenterCentennial LakeProprietary Funds
Current assets:
Cash and cash equivalents770$ 526$ 9,991$ 11,287$
Investments- - 4,658,390 4,658,390
Accounts receivable:
Accounts127,210 - 8,927 136,137
Interest- - 39,529 39,529
Net accounts receivable127,210 - 48,456 175,666
Inventory- 16,968 - 16,968
Deferred charges4,925 - - 4,925
Total current assets132,905 17,494 4,716,837 4,867,236
Noncurrent assets:
Net capital assets3,545,865 339,001 715,576 4,600,442
Total noncurrent assets3,545,865 339,001 715,576 4,600,442
Total assets3,678,770 356,495 5,432,413 9,467,678
Liabilities:
Current liabilities:
Accounts payable29,323 21,715 30,952 81,990
Salaries payable5,874 2,197 9,249 17,320
Accrued interest payable14,295 - - 14,295
Contracts payable5,732 5,732
Due to other governments208 1,225 4,570 6,003
Compensated absences payable9,818 3,935 9,801 23,554
Deferred revenue- 2,550 49,250 51,800
Bonds payable195,000 - - 195,000
Total current liabilities254,518 37,354 103,822 395,694
Noncurrent liabilities:
Bonds payable, net840,943 - - 840,943
Compensated absences88,365 35,419 88,209 211,993
Total noncurrent liabilities929,308 35,419 88,209 1,052,936
Total liabilities1,183,826 72,773 192,031 1,448,630
Net assets:
Invested in capital assets,
net of related debt2,514,847 339,001 715,576 3,569,424
Unrestricted(19,903) (55,279) 4,524,806 4,449,624
Total net assets2,494,944$ 283,722$ 5,240,382$ 8,019,048$
72
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES Statement 15
AND CHANGES IN FUND NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Total
Edinborough ParkNonmajor
ArenaArt CenterCentennial LakeProprietary Funds
Operating revenues:
Sales - retail25,646$ 63,811$ -$ 89,457$
Sales - concessions- 2,893 25,435 28,328
Memberships4,958 31,047 57,820 93,825
Admissions92,142 - 371,001 463,143
Building rental1,074,841 - 258,154 1,332,995
Rental of equipment3,277 - 69,366 72,643
Greens fees- - 180,530 180,530
Other fees119,123 396,457 477,511 993,091
Total operating revenues1,319,987 494,208 1,439,817 3,254,012
Operating expenses:
Cost of sales and services1,342 28,012 10,493 39,847
Personal services606,876 278,228 892,986 1,778,090
Contractual services479,108 259,187 391,255 1,129,550
Commodities49,469 49,301 171,267 270,037
Central Services38,091 30,375 81,200 149,666
Depreciation317,575 27,960 84,228 429,763
Total operating expenses1,492,461 673,063 1,631,429 3,796,953
Operating loss(172,474) (178,855) (191,612) (542,941)
Nonoperating revenues (expenses):
Investment income- - 157,988 157,988
Donations- 26,673 - 26,673
Interest and fiscal charges(28,758) - - (28,758)
Interest on capital lease(699) - (194) (893)
Loss on sale of capital asset- - (21,342) (21,342)
Amortization of bond discount(2,246) - - (2,246)
Total nonoperating
revenues (expenses)(31,703) 26,673 136,452 131,422
Income (loss) before
transfers(204,177) (152,182) (55,160) (411,519)
Transfers:
Transfers in177,430 155,000 98,000 430,430
Total transfers 177,430 155,000 98,000 430,430
Change in net assets(26,747) 2,818 42,840 18,911
Net assets - January 1 2,521,691 280,904 5,197,542 8,000,137
Net assets - December 312,494,944$ 283,722$ 5,240,382$ 8,019,048$
73
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 16
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2004
Total
ArtEdinborough ParkNonmajor
ArenaCenterCentennial LakeProprietary Funds
Cash flows from operating activities:
Receipts from customers and users1,313,622$ 495,308$ 1,428,576$ 3,237,506$
Payment to suppliers(562,036) (355,843) (694,265) (1,612,144)
Payment to employees(620,503) (290,706) (922,878) (1,834,087)
Net cash provided by
(used in) operating activities131,083 (151,241) (188,567) (208,725)
Cash flows from noncapital financing activities:
Transfer (to) from Enterprise Funds103,000 130,000 - 233,000
Transfer (to) from Capital Project Funds74,430 25,000 98,000 197,430
Donations- 26,673 - 26,673
Net cash provided by
noncapital financing activities177,430 181,673 98,000 457,103
Cash flows from capital and related financing activities:
Acquisition of capital assets(74,430) (30,631) (114,730) (219,791)
Principal paid on bonds(180,000) - - (180,000)
Principal paid on capital lease(25,200) - (7,000) (32,200)
Interest paid on bonds(30,933) - - (30,933)
Interest paid on capital lease(699) - (194) (893)
Net cash used in capital
and related financing activities(311,262) (30,631) (121,924) (463,817)
Cash flows from investing activities:
Proceeds from sales of investments- - 59,331 59,331
Investment income- - 160,668 160,668
Net cash flows provided by (used in)
investing activities- - 219,999 219,999
Net increase (decrease) in cash
and cash equivalents(2,749) (199) 7,508 4,560
Cash and cash equivalents - January 13,519 725 2,483 6,727
Cash and cash equivalents - December 31770$ 526$ 9,991$ 11,287$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (172,474)$ (178,855)$ (191,612)$ (542,941)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation317,575 27,960 84,228 429,763
Changes in assets and liabilities:
Decrease (increase) in receivables(6,365) - 3,997 (2,368)
Decrease (increase) in due from other funds790 501 - 1,291
Decrease (increase) in inventory- 894 - 894
Increase (decrease) in accounts payable5,623 4,490 2,106 12,219
Increase (decrease) in salaries payable(20,760) (8,138) (26,399) (55,297)
Increase (decrease) in contracts payable- 5,732 - 5,732
Increase (decrease) in due to other funds- - (42,644) (42,644)
Increase (decrease) in due to other governments(439) (585) 488 (536)
Increase (decrease) in compensated absences7,133 (4,340) (3,493) (700)
Increase (decrease) in deferred revenue- 1,100 (15,238) (14,138)
Total adjustments303,557 27,614 3,045 334,216
Net cash provided by (used in)
operating activities131,083$ (151,241)$ (188,567)$ (208,725)$
Noncash investing, capital and financing activities:
Increase (decrease) in fair value of investments-$ -$ (41,338)$ (41,338)$
74
This page left blank intentionally.
75
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2004
Final
InterestMaturity
RatesDateDate
Tax Increment Bonds:
Tax Increment Refunding Taxable Bonds, Series 1996A5.85 - 6.2503/01/9602/01/09
Tax Increment Bonds, Series 1997B4.50 - 5.2004/01/9702/01/13
Tax Increment Bonds, Series 2000A4.30 - 4.8009/06/0002/01/11
Tax Increment Bonds, Series 2000C4.50 - 4.6509/06/0002/01/09
Tax Increment Bonds, Series 2002B3.00%08/05/0202/01/09
Tax Increment Taxable Refunding Bonds of 2003B1.128 - 1.74903/01/0302/01/06
Total Tax Increment Bonds
General Obligation Bonds:
General Obligation - Park & Recreation, Series 1996B4.25 - 5.7508/01/9602/01/17
General Obligation Equipment Certificates, Series 2003A1.05 - 2.4003/01/0302/01/08
Total General Obligation Bonds
Public Project Revenue Bonds:
Public Project Revenue, Series 20024.00 - 5.2501/01/0202/01/21
Total Public Project Revenue Bonds
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70 - 4.4505/03/9901/01/13
Recreational Facility Bonds, Series 2001A2.25 - 4.6511/01/0101/01/17
Utility Revenue Bonds, Series 1999A3.20 - 4.2005/03/9902/01/09
Utility Revenue Bonds, Series 2003C1.10 - 3.5503/01/0302/01/13
Total Revenue Bonds
Total - Bonded indebtedness
Capital lease - Fire Station 25.210/01/9708/01/06
Capital lease - Honeywell5.503/01/9403/01/04
Compensated absences payable
Total City indebtedness
76
Exhibit 1
Prior YearsPrincipalInterestInterest
OriginalOutstanding2004PayableDueDuePayable
IssueRedeemed12/31/2003IssuedPayments12/31/2004In 2005In 2005to Maturity
11,250,000$ 3,275,000$ 7,975,000$ -$ 900,000$ 7,075,000$ 900,000$ 409,512$ 1,270,705$
5,090,000 750,000 4,340,000 - 225,000 4,115,000 250,000 211,218 1,095,370
2,620,000 430,000 2,190,000 - 230,000 1,960,000 240,000 85,173 338,701
15,820,000 2,395,000 13,425,000 - 1,460,000 11,965,000 1,505,000 512,505 1,599,469
1,400,000 - 1,400,000 - - 1,400,000 - 42,000 315,000
6,570,000 - 6,570,000 - 2,325,000 4,245,000 2,570,000 67,575 88,513
42,750,000 6,850,000 35,900,000 - 5,140,000 30,760,000 5,465,000 1,327,983 4,707,758
8,090,000 1,465,000 6,625,000 - 325,000 6,300,000 350,000 337,913 2,561,169
1,540,000 - 1,540,000 - 545,000 995,000 555,000 14,950 29,750
9,630,000 1,465,000 8,165,000 - 870,000 7,295,000 905,000 352,863 2,590,919
12,410,000 375,000 12,035,000 - 440,000 11,595,000 460,000 558,486 5,630,381
12,410,000 375,000 12,035,000 - 440,000 11,595,000 460,000 558,486 5,630,381
3,270,000 220,000 3,050,000 - 255,000 2,795,000 265,000 113,492 577,635
4,620,000 525,000 4,095,000 - 565,000 3,530,000 585,000 114,126 495,536
3,600,000 1,305,000 2,295,000 - 345,000 1,950,000 360,000 71,775 205,927
3,200,000 - 3,200,000 - 290,000 2,910,000 285,000 76,507 426,185
14,690,000 2,050,000 12,640,000 - 1,455,000 11,185,000 1,495,000 375,900 1,705,283
79,480,000 10,740,000 68,740,000 - 7,905,000 60,835,000 8,325,000 2,615,232 14,634,341
650,000 420,415 229,585 - 229,585 - - - -
510,000 475,000 35,000 - 35,000 - - - -
- - 3,534,516 - - 3,715,773 - - -
80,640,000$ 11,635,415$ 72,539,101$ -$ 8,169,585$ 64,550,773$8,325,000$ 2,615,232$ 14,634,341$
77
CITY OF EDINA, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
TAX INCREMENT AND GENERAL OBLIGATION BONDS
December 31, 2004
1996A
Tax Increment1997B2000A2000C
Tax. RefndgTax IncrementTax IncrementTax Increment
BondsBondsBondsBonds
Bonds payable7,075,000$ 4,115,000$ 1,960,000$ 11,965,000$
Future interest payable1,270,705 1,095,370 338,701 1,599,469
Totals8,345,705$ 5,210,370$ 2,298,701$ 13,564,469$
Payments to maturity:
20051,309,512$ 461,218$ 325,172$ 2,017,505$
20061,351,563 599,578 329,095 2,096,405
20071,750,705 598,306 327,329 2,838,142
20081,974,550 595,792 329,860 3,281,738
20091,959,375 591,900 326,677 3,330,679
2010- 591,593 327,768 -
2011- 589,831 332,800 -
2012- 591,340 - -
2013- 590,812 - -
2014- - - -
2015- - - -
2016- - - -
2017- - - -
8,345,705$ 5,210,370$ 2,298,701$ 13,564,469$
78
Exhibit 2
2003B
2002BTax Increment1996B2003A
Tax IncrementRefundingPark & RecEquipmentGrand
BondsBondsTotalGen. Oblig.CertificatesTotalTotal
1,400,000$ 4,245,000$ 30,760,000$ 6,300,000$ 995,000$ 7,295,000$ 38,055,000$
315,000 88,513 4,707,758 2,561,169 29,750 2,590,919 7,298,677
1,715,000$ 4,333,513$ 35,467,758$ 8,861,169$ 1,024,750$ 9,885,919$ 45,353,677$
42,000$ 2,637,575$ 6,792,982$ 687,912$ 569,950$ 1,257,862$ 8,050,844$
42,000 1,695,938 6,114,579 694,600 152,950 847,550 6,962,129
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
1,715,000$ 4,333,513$ 35,467,758$ 8,861,169$ 1,024,750$ 9,885,919$ 45,353,677$
79
CITY OF EDINA, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 3
PUBLIC PROJECT REVENUE BONDS
December 31, 2004
2002
Public Project
Bonds
Bonds payable 11,595,000$
Future interest payable 5,630,381
Totals 17,225,381$
Payments to maturity:
2005 1,018,486$
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
17,225,381$
80
CITY OF EDINA, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY Exhibit 4
REVENUE BONDS
December 31, 2004
1999B2001A1999A2003C
RecreationalRecreationalUtility Utility
FacilityFacilityRevenueRevenue
BondsBondsBondsBondsTotal
Bonds payable2,795,000$ 3,530,000$ 1,950,000$ 2,910,000$ 11,185,000$
Future interest payable577,635 495,536 205,927 426,185 1,705,283
Totals3,372,635$ 4,025,536$ 2,155,927$ 3,336,185$ 12,890,283$
Payments to maturity:
2005378,492$ 699,126$ 431,775$ 361,507$ 1,870,900$
2006372,925 706,335 432,345 362,263 1,873,868
2007381,580 691,579 432,045 366,795 1,871,999
2008374,441 606,515 430,942 369,922 1,781,820
2009376,580 586,577 428,820 371,565 1,763,542
2010372,955 90,167 - 371,973 835,095
2011373,709 92,568 - 376,247 842,524
2012368,832 94,684 - 379,345 842,861
2013373,121 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
3,372,635$ 4,025,536$ 2,155,927$ 3,336,185$ 12,890,283$
81
CITY OF EDINA, MINNESOTA
ASSESSED VALUATION, TAX LEVIES AND MILL RATES Exhibit 5
(shown by year of tax collectibility)
20012002200320042005
Assessed valuation/tax capacity99,650,358$ 72,583,694$ 77,665,879$ 83,447,880$ 91,309,672$
Increment valuation(8,559,204) (6,513,676) (6,909,331) (6,949,064) (7,330,826)
Contribution to fiscal disparities pool(10,127,351) (6,893,865) (7,587,409) (7,945,664) (7,635,854)
Received from fiscal disparities pool2,752,149 1,830,348 1,975,365 2,202,656 2,374,371
Taxable valuation83,715,952$ 61,006,501$65,144,504$70,755,808$ 78,717,363$
Tax levies:
General Fund14,438,346$ 15,990,256$ 16,171,875$ 16,489,129$ 17,772,350$
Public Project Revenue- 1,000,000 1,026,437 1,028,837 1,058,840
Certificates of Indebtedness- - 586,163 604,275 162,200
Total tax levies14,438,346$ 16,990,256$17,784,475$18,122,241$ 18,993,390$
Tax Capacity Rate:
General Fund17.23327.80627.13925.56524.085
82
This page left blank intentionally.
83
CITY OF EDINA, MINNESOTA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
Last Two Fiscal Years
(Unaudited)
Interest on
FiscalGeneralPublicPublicLong-Term
Year*GovernmentSafetyWorksParksDebt
20035,839,893$ 10,784,215$ 5,621,291$ 4,484,685$ 2,760,022$
20046,934,045 11,063,767 5,834,490 4,248,060 2,399,682
*Government-wide expenses are not available for years prior to 2003
84
Table 1
Community
AquaticGolfActivity
UtilityLiquorCenterCourseCentersTotal
8,107,553$ 8,764,081$ 711,061$ 3,555,243$ 3,833,026$ 54,461,070$
7,801,580 9,110,888 701,768 3,508,741 3,850,192 55,453,213
85
CITY OF EDINA, MINNESOTA
GOVERNMENT-WIDE REVENUES Table 2
Last Two Fiscal Years
(Unaudited)
ChargesOperatingCapitalUnrestricted
FiscalForGrants andGrants andPropertyTaxFranchiseInvestment
Year*ServicesContributionsContributionsTaxesIncrementsTaxesEarningsTotal
200332,908,375$ 1,347,776$ 7,214,393$ 17,815,426$ 7,342,270$ -$ 673,326$ 67,301,566$
200433,299,158 1,293,255 4,192,947 17,865,757 6,761,934 450,956 670,241 64,534,248
*Government-wide revenues are not available for years prior to 2003
General RevenuesProgram Revenues
86
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS Table 3
Last Ten Fiscal Years
(Unaudited)
TotalDelinquent
TotalCurrentPercentDelinquentCollectionsOutstandingTaxes as
TaxesTaxTaxof LevyTax Total Taxas Percent ofDelinquentPercent of
PayableLevyCollectionCollectedCollectionsCollectionsCurrent LevyTaxesCurrent Levy
199511,390,898$ 11,198,647$ 98.31%(67,047)$ 11,131,600$ 97.72%88,399$ 0.78%
199612,178,440 12,026,177 98.75%(262,279) 11,763,898 96.60%36,198 0.30%
199712,531,244 12,381,729 98.81%(244,913) 12,136,816 96.85%39,107 0.31%
199813,099,140 13,003,882 99.27%48,985 13,052,867 99.65%54,226 0.41%
199913,284,962 13,147,288 98.96%36,293 13,183,581 99.24%99,202 0.75%
200013,650,158 13,554,044 99.30%15,355 13,569,399 99.41%116,362 0.85%
200114,438,346 14,331,078 99.26%25,907 14,356,985 99.44%121,548 0.84%
200216,990,256 16,874,198 99.32%55,578 16,929,776 99.64%132,443 0.78%
200317,784,475 17,088,979 96.09%68,657 17,157,636 96.48%80,841 0.45%
200418,122,241 17,386,812 95.94%(202,429) 17,184,383 94.82%154,878 0.85%
Source: Hennepin County Taxpayer Services
87
CITY OF EDINA, MINNESOTA
ASSESSED VALUE OR TAX CAPACITY AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years Table 4
(Unaudited)
Ratio of Total
Assessed Value/
Tax Capacity to
AssessmentAssessed Value/EstimatedTotal Estimated
YearTax CapacityMarket ValueMarket Value
199584,055,819$ 3,849,796,600$ 2.18%
199685,775,887 4,071,654,134 2.11%
199791,586,990 4,074,713,634 2.25%
199887,726,810 4,267,758,501 2.06%
199985,963,836 4,535,761,900 1.90%
200090,055,752 4,861,730,000 1.85%
200172,133,594 5,821,566,500 1.24%
200277,665,879 6,328,581,300 1.23%
200383,089,465 6,909,476,700 1.20%
200490,934,037 8,033,679,900 1.13%
Source: Hennepin County Taxpayer Services
Real Property
88
CITY OF EDINA, MINNESOTA
PROPERTY TAX RATES - Table 5
ALL OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
(Unaudited)
Tax Rates
(Per $1,000 of Assessed Valuation)
Fiscal
YearCitySchoolCountyOtherTotal
199515.57757.97537.4546.851117.857
199616.33162.26837.2707.494123.363
199715.62657.21335.5156.659115.013
199816.81347.49938.3887.538110.238
199917.81050.76640.9948.553118.123
200017.66951.67839.6558.426117.428
200117.23346.83937.6248.126109.822
200227.80618.50450.4099.847106.566
200327.13923.31250.6078.993110.051
200425.56522.67047.3248.256103.815
Source: Hennepin County Taxpayer Services
89
CITY OF EDINA, MINNESOTA
SPECIAL ASSESSMENT COLLECTIONS Table 6
Last Ten Fiscal Years
(Unaudited)
Percent
CollectionPercentof TotalTotal
Totalof Currentof LevyDelinquentTotalCollections toOutstanding
YearLevyYear's LevyCollectedCollectionsCollectionsTotal LevyAssessments
1995786,480$ 779,517$ 99.11%7,508$ 787,025$ 100.07%26,223$
1996768,800 764,997 99.51%16,636 781,633 101.67%13,389
1997590,048 576,513 97.71%9,036 585,549 99.24%17,889
1998654,442 635,476 97.10%3,798 639,274 97.68%33,057
1999773,251 753,251 97.41%14,273 767,524 99.26%38,784
2000960,562 930,484 96.87%5,586 936,070 97.45%63,275
20011,003,856 975,921 97.22%51,173 1,027,094 102.31%40,038
2002974,141 950,417 97.56%23,756 974,173 100.00%40,006
2003978,278 964,440 98.59%24,439 988,879 101.08%29,404
2004900,817 894,713 99.32%13,019 907,732 100.77%34,427
90
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)
DebtRatio of
GrossServiceNet BondedNet Bonded
FiscalNet TaxBondedMoniesNet BondedDebt toDebt
YearPopulation (1)CapacityDebt (2)AvailableDebtTax CapacityPer Capita
199546,841 74,787,000$ 101,775,000$ 43,265,984$ 58,509,016$ 78.23%1,249$
199646,845 80,087,160 92,680,000 25,429,215 67,250,785 83.97%1,436
199747,029 77,762,151 94,385,000 17,929,523 76,455,477 98.32%1,626
199847,113 85,259,000 70,260,000 589,371 69,670,629 81.72%1,479
199947,235 77,165,969 73,005,000 4,384,419 68,620,581 88.93%1,453
200047,425 83,715,952 88,175,000 21,251,947 66,923,053 79.94%1,411
200147,465 61,006,501 72,465,000 8,321,645 64,143,355 105.14%1,351
200247,465 65,486,283 70,735,000 3,070,758 67,664,242 103.33%1,426
200347,570 70,755,808 68,740,000 4,053,306 64,686,694 91.42%1,360
200448,156 90,934,037 60,835,000 3,102,028 57,732,972 63.49%1,199
(1) Population estimates provided from Metropolitan Council which reflect the federal census.
(2) Includes all long-term general obligation and revenue debt.
91
CITY OF EDINA, MINNESOTA
COMPUTATION OF DIRECT AND OVERLAPPING DEBT Table 8
INCLUDING DEBT RATIOS
December 31, 2004
(Unaudited)
BondedPercentage
Gross DebtApplicableCity Share
Overlapping Debt:OutstandingIn Cityof Debt
Hennepin County359,510,000$ 6.61%23,758,117$
Hennepin Suburban Park District44,580,000 8.80%3,925,002
School Districts:
ISD No. 273 (Edina)109,270,000 98.08%107,175,838
ISD No. 270 (Hopkins)83,355,000 8.36%6,967,777
ISD No. 271 (Bloomington)131,470,000 0.01%7,582
ISD No. 272 (Eden Prairie)102,015,000 0.77%790,543
ISD No. 280 (Richfield)40,015,000 15.66%6,264,697
ISD No. 283 (St. Louis Park)57,230,000 0.01%8,027
Metro Council200,015,000 2.97%5,944,051
Total Overlapping Debt1,127,460,000 154,841,634
Direct Debt:
City of Edina49,650,000 100.00%49,650,000
Total Overlapping and Direct Debt1,177,110,000$ 204,491,634$
Debt Ratios:
Ratio of debt per capita (48,156 population)4,246$
Ratio of debt to estimated market valuation of $8,033,679,9002.55%
Source: Hennepin County Taxpayer Services
92
CITY OF EDINA, MINNESOTA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR Table 9
GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES
Last Ten Fiscal Years
(Unaudited)
Percent of
Debt Service
InterestTotalTotalExpenditures
FiscalandDebtGeneralTo General
YearPrincipalOtherServiceExpendituresExpenditures
19952,495,000$ 5,378,815$ 7,873,815$ 23,630,853$ 33.32%
19961,400,000 4,881,475 6,281,475 23,128,537 27.16%
19972,120,000 4,502,948 6,622,948 24,000,082 27.60%
19982,224,724 4,099,809 6,324,533 25,390,000 24.91%
19993,275,000 3,262,266 6,537,266 25,131,088 26.01%
20006,050,000 3,108,601 9,158,601 25,814,880 35.48%
20013,740,000 3,148,719 6,888,719 28,382,482 24.27%
20025,885,000 3,094,480 8,979,480 30,675,141 29.27%
20035,700,000 2,883,377 8,583,377 30,539,932 28.11%
20046,450,000 2,478,587 8,928,587 32,799,091 27.22%
Note: This table includes General, Special Revenue and Debt Service Funds.
93
CITY OF EDINA, MINNESOTA
REVENUE BOND COVERAGE Table 10
Last Ten Fiscal Years
(Unaudited)
Net
revenue
Direct*available
FiscalGrossOperatingfor debt
YearRevenueexpensesservicePrincipalInterestTotalCoverage
Utility Bond
19957,591,331 6,766,288 825,043 345,000 78,182 423,182 195
19967,753,016 7,007,293 745,723 370,000 52,019 422,019 177
19978,110,744 7,526,033 584,711 390,000 40,744 430,744 136
19988,108,612 7,226,648 881,964 400,000 22,184 422,184 209
19998,502,423 6,713,673 1,788,750 420,000 83,429 503,429 355
20008,793,386 7,205,934 1,587,452 335,000 127,525 462,525 343
20018,556,810 7,065,589 1,491,221 310,000 116,794 426,794 349
20028,561,287 7,399,773 1,161,514 325,000 105,205 430,205 270
20039,668,434 7,769,810 1,898,624 335,000 160,691 495,691 383
20049,473,355 7,643,129 1,830,226 635,000 158,451 793,451 231
Recreational Facility Bonds
19953,824,627 3,262,948 561,679 - 839,244 839,244 67
19964,311,141 3,545,291 765,850 250,000 774,800 1,024,800 75
19974,440,202 3,945,975 494,227 295,000 762,411 1,057,411 47
19985,042,394 4,270,042 772,352 4,240,000 372,390 4,612,390 17
19995,141,606 4,332,932 808,674 430,000 522,050 952,050 85
20005,727,930 5,209,610 518,320 450,000 553,962 1,003,962 52
20015,430,507 5,231,143 199,364 470,000 531,176 1,001,176 20
20025,424,422 5,031,839 392,583 6,780,000 611,509 7,391,509 5
20035,866,300 5,511,730 354,570 745,000 265,602 1,010,602 35
20045,621,743 5,492,510 129,233 820,000 241,387 1,061,387 12
* Before interest costs.
Debt service requirements
94
CITY OF EDINA, MINNESOTA
PROPERTY AND CONSTRUCTION VALUES Table 11
Last Ten Fiscal Years
(Unaudited)
Number of Number of Commercial/Residential/
YearPermitsValuePermitsValueIndustrialApartments
199527414,349,143$ 56428,064,106$ 668,098,800$ 3,181,697,800$
199627935,789,432 1,31831,334,870 745,200,700 3,326,107,834
199740737,074,290 1,78032,387,315 824,767,100 3,438,309,200
199846238,495,806 1,83035,625,118 904,869,800 3,623,187,200
199932336,708,942 3,47827,637,742 980,837,900 3,924,031,400
20001,41866,980,499 4,01348,278,737 1,069,928,100 4,387,874,100
200183486,608,740 4,97365,574,279 1,173,397,300 5,056,797,500
200275744,300,120 4,84169,612,658 1,217,214,600 5,834,821,900
200381250,696,987 4,82785,287,525 1,202,162,900 6,286,945,800
200487646,251,604 4,94383,315,920 1,176,787,600 6,856,892,300
* Assessor's estimated market value
Property value *construction
CommercialResidential
construction
95
CITY OF EDINA, MINNESOTA
PRINCIPAL TAXPAYERS Table 12
2004
(Unaudited)
2004
Net
TaxpayerType of BusinessTax Capacity
SouthdaleShopping center3,154,408$
GalleriaShopping center949,864
Southdale Office parkOffice building717,250
Centennial lakes Phase VOffice building509,625
Centennial Lakes Phase IVOffice building496,474
7700 FranceOffice building450,214
Southdale Medical BuildingOffice building428,608
May Department StoresRetail343,044
Centennial Lakes Phase IIIOffice building301,066
Centennial Lakes Phase IIOffice building301,066
Source: City of Edina Assessing Office
96
CITY OF EDINA, MINNESOTA
MAJOR EMPLOYERS IN THE CITY Table 13
2004
(Unaudited)
Approximate
Number
EmployerProduct/Serviceof Employees
Jerry's Enterprises Inc.Grocery Stores4,500
Fairview Southdale HospitalGeneral Medical & Surgical Hospitals2,500
Marshall FieldsDepartment Stores1,200
Edina Public School ISD#273Elementary & Secondary Schools1,172
Nash Finch Co.Grocery Stores350
International Dairy Queen Inc.Full-Service Restaurants300
City of EdinaLocal Government262
J.C. PenneyDepartment Stores250
Edina RealtyReal Estate210
Con Agra FoodsSnack Food Mfg196
Source: City of Edina "Community Profile", Minnesota Department of Trade and Economic Development, 2004
97
CITY OF EDINA, MINNESOTA
LABOR FORCE DATA Table 14
Last Two Fiscal Years
(Unaudited)
CivilianUnemploymentCivilianUnemployment
Labor ForceRateLabor ForceRate
Hennepin County676,275 3.90%687,345 4.10%
Mpls.-St. Paul MSA1,833,558 4.20%1,825,102 4.70%
State of Minnesota2,937,260 4.70%2,912,336 5.30%
Source: Minnesota Workforce Center.
December 2004December 2003
98
CITY OF EDINA, MINNESOTA
MISCELLANEOUS STATISTICAL DATA Table 15
December 31, 2004 Page 1 of 2
(Unaudited)
Date of incorporationDecember 17, 1888
Form of government Plan B
Date of adoption of Council-Manager PlanJanuary 1, 1955
Fiscal year beginsJanuary 1
Area of city 16 square miles
Percent of City developed with buildings97%
Municipal bond ratingAaa
Miles of streets224 miles
Miles of sanitary sewer 186.22 miles
Sewer connections14,851
Fire protection:
Number of stations2
Number of employees (full time)31
Police Protection:
Number of stations1
Number of employees (full time)67
Park land:
Present park acres and open space1,600
Total improved park acres1,007
Number of parks40
Private golf courses2
Public golf courses3
Municipal water:
Number of wells18
Miles of watermain 199
Gallons of storage7 million
Number of consumers14,636
99
CITY OF EDINA, MINNESOTA
MISCELLANEOUS STATISTICAL DATA Table 15
December 31, 2004 Page 2 of 2
(Unaudited)
Population:
1930 Census3,138
1940 Census5,855
1950 Census9,744
1960 Census28,501
1965 Special Census35,302
1970 Census44,046
1975 Metro Council estimate49,736
1980 Census46,073
1990 Census46,070
1991 Metro Council estimate46,070
1992 Metro Council estimate46,079
1993 Metro Council estimate46,916
1994 Metro Council estimate46,984
1995 Metro Council estimate46,841
1996 Metro Council estimate46,845
1997 Metro Council estimate47,029
1998 Metro Council estimate47,113
1999 Metro Council estimate47,235
2000 Census47,425
2001 Metro Council estimate47,465
2002 Metro Council estimate47,465
2003 Metro Council estimate47,570
2004 Metro Council estimate48,156
100
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, 2004
(Unaudited)
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds2,200,000$ 5,280,000$ 5,251,998$ -$ 28,002$
Tax increments received- 31,748,489 20,862,239 867,505 10,018,745
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 2,611,370 77,970 (689,340)
Other- 73,881 73,881 - -
Total sources of funds:3,000,000 41,467,707 30,572,234 945,475 9,949,998
Uses of funds:
Land acquisition- 873,061 873,061 - -
Installation of public utilities
and improvements3,000,000 7,867,034 7,862,032 - 5,002
Bond payments:
Principal- 5,280,000 3,700,000 800,000 780,000
Interest- 4,738,329 4,107,064 25,200 606,065
Administrative costs- 1,230,000 1,205,451 750 23,799
Paid to other governments- 21,000 12,366 1,643 6,991
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 10,000,000 - -
Total uses of funds:3,000,000 30,562,457 28,313,922 827,593 1,420,942
Funds remaining (deficit)-$ 10,905,250$ 2,258,312$ 117,882$ 8,529,056$
Cost to authorityPrice paid by developer
* Real estate sales
Liquor store site128,064$ 105,002$
Union oil site134,506 65,780
262,570$ 170,782$
101
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, 2004
(Unaudited)
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds6,165,177$ 21,470,000$ 20,219,852$ -$ 1,250,148$
Tax increments received- 75,000,000 47,002,439 2,548,311 25,449,250
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 2,615,493 36,770 847,737
Other- 50,000 1,357 - 48,643
Total sources of funds:6,763,182 104,530,317 72,670,477 2,585,081 29,274,759
Uses of funds:
Land acquisition6,682,998 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 costs2,885,484 2,000,000 468,098 - 1,531,902
Bond payments:
Principal- 21,470,000 17,535,000 1,525,000 2,410,000
Interest- 20,100,000 19,601,026 91,325 407,649
Administrative costs194,700 1,800,000 1,673,988 - 126,012
Paid to other governments- 110,000 58,217 8,315 43,468
Transfers out- 17,000,000 8,044,777 3,403,180 5,552,043
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 69,322,084 5,027,820 18,947,948
Funds remaining (deficit)(3,000,000)$ 11,232,465$ 3,348,393$ (2,442,739)$ 10,326,811$
Cost to authorityPrice paid by developer
* Real estate sales
Retail site8,350$ 11,899$
Hotel site192,915 192,915
Elderly site453,740 346,534
Office site1,027,277 784,563
Coventry Townhouses1,318,103 1,318,103
3,000,385$ 2,654,014$
102
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, 2004
(Unaudited)
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds4,500,000$ 9,900,000$ 9,475,915$ -$ 424,085$
Tax increments received- 29,737,107 9,909,990 890,549 18,936,568
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds- 300,000 844,903 27,860 (572,763)
Other- - 59,868 - (59,868)
Total sources of funds:4,500,000 44,637,107 25,693,020 918,409 18,025,678
Uses of funds:
Land acquisition- 6,500,000 3,634,092 48,489 2,817,419
Installation of public utilities
and improvements4,310,000 17,127,000 9,738,935 - 7,388,065
Bond payments:
Principal- 9,900,000 6,047,555 230,000 3,622,445
Interest- 9,190,000 2,553,631 137,573 6,498,796
Loan/note interest- - 1,337,266 454,801 (1,792,067)
Paid to other governments- - 190,522 1,476 (191,998)
Administrative costs190,000 1,920,107 1,287,593 16,419 616,095
Total uses of funds:4,500,000 44,637,107 24,789,594 888,758 18,958,755
Funds remaining (deficit)-$ -$ 903,426$ 29,651$ (933,077)$
Cost to authorityPrice paid by developer
* Real estate sales
5229 Eden Ave.1,822,319$
5220 Eden Circle995,000
5244 Eden Circle (condemnation deposit)309,937
5201 Eden Circle555,325 2,070,119
Project area- 4,005,694
3,682,581$ 6,075,813$
103
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, 2004
(Unaudited)
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds41,400,000$ 41,400,000$ 33,761,677$ -$ 7,638,323$
Tax increments received80,000,000 90,000,000 24,208,644 2,455,569 63,335,787
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 2,485,937 103,229 (89,166)
Transfer in- 28,000,000 19,156,001 3,403,180 5,440,819
Sale of material- 255,710 255,710 - -
Developer payments- 297,826 297,826 - -
Other- 20,000 21,799 - (1,799)
Total sources of funds:126,400,000 175,431,702 91,824,664 5,961,978 77,645,060
Uses of funds:
Land acquisition13,900,000 22,981,425 22,981,425 - -
Installation of public utilities
and improvements26,677,000 25,871,230 16,594,753 - 9,276,477
Bond payments:
Principal41,400,000 41,400,000 10,004,724 2,585,000 28,810,276
Interest38,000,000 38,000,000 30,009,086 1,266,279 6,724,635
Administrative costs1,140,800 1,600,000 1,265,586 9,637 324,777
Paid to other governments- 42,000 20,783 2,968 18,249
Loan/note interest- 14,684,711 2,569,912 487,749 11,627,050
Parkland dedication fees- 2,030,345 2,030,345 - -
Total uses of funds:121,117,800 146,609,711 85,476,614 4,351,633 56,781,464
Funds remaining (deficit)5,282,200$ 28,821,991$ 6,348,050$ 1,610,345$ 20,863,596$
Cost to authorityPrice paid by developer
* Real estate sales
Retail and theater site3,213,720$ 3,213,720$
Medical office site815,092 815,092
Office site1,107,160 1,107,160
Office building #1449,300 449,300
Office building #21,280,702 1,280,702
Office building #31,341,533 1,341,533
Office building #41,625,849 1,625,849
Office building #51,803,714 1,803,714
11,637,070$ 11,637,070$
104
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, 2004
(Unaudited)
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds1,911,000$ 1,911,000$ -$ -$ 1,911,000$
Tax increments received2,177,855 2,177,855 746,863 - 1,430,992
Interest on invested funds- - 175,476 11,471 (186,947)
Other- - - - -
Total sources of funds:4,088,855 4,088,855 922,339 11,471 3,155,045
Uses of funds:
Land acquisition529,400 529,400 15,790 17,447 496,163
Installation of public utilities
and improvements325,000 325,000 540,279 - (215,279)
Demolition150,000 150,000 - - 150,000
Relocation160,000 160,000 - - 160,000
Capitalized interest150,000 150,000 - - 150,000
Debt service2,178,455 2,178,455 - - 2,178,455
Paid to other governments- - 2,730 - (2,730)
Administrative costs596,000 596,000 74,830 - 521,170
Total uses of funds:4,088,855 4,088,855 633,629 17,447 3,437,779
Funds remaining (deficit)-$ -$ 288,710$ (5,976)$ (282,734)$
105