HomeMy WebLinkAbout2006 Comprehensive Annual Financial ReportCITY OF EDINA
2006 COMPREHENSIVE
ANNUAL FINANCIAL REPORT
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2006
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
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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 123
Statement of ActivitiesStatement 224
Fund Financial Statements:
Balance Sheet - Governmental FundsStatement 327
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental FundsStatement 428
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of ActivitiesStatement 529
Statement of Net Assets - Proprietary FundsStatement 630
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary FundsStatement 731
Statement of Cash Flows - Proprietary FundsStatement 832
Statement of Fiduciary Net Assets - Fiduciary FundsStatement 934
Notes to the Financial Statements 35
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General FundStatement 1063
Notes to Required Supplementary Information69
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
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ReferenceNo.
Combining and Individual Non Major Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Special Revenue FundsStatement 1172
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue FundsStatement 1273
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and ActualStatement 1374
Combining Statement of Net Assets - Nonmajor Proprietary FundsStatement 1476
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets - Nonmajor Proprietary FundsStatement 1577
Combining Statement of Cash Flows - Nonmajor Proprietary FundsStatement 1678
Combining Statement of Changes in Assets and Liabilities - Agency FundsStatement 1781
Supplementary Financial Information:
Combined Schedule of IndebtednessExhibit 184
Tax Capacity, Tax Levies and Tax Capacity RatesExhibit 286
Schedule of Sources and Uses of Public Funds for 50th & France - #1200Exhibit 387
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1201Exhibit 488
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #1202Exhibit 589
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1203Exhibit 690
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207Exhibit 791
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
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ReferenceNo.
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component 94
Changes in Net Assets 95
Fund Balances of Governmental Funds96
Changes in Fund Balances of Governmental Funds98
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property100
Direct and Overlapping Tax Capacity Rates101
Principal Property Tax Payers 102
Property Tax Levies and Collections 103
Debt Capacity:
Ratios of Outstanding Debt by Type 104
Ratios of General Bonded Debt Outstanding105
Direct and Overlapping Governmental Activities Debt106
Legal Debt Margin Information 107
Pledged Revenue Coverage 108
Demographic and Economic Information:
Demographic and Economic Statistics109
Principal Employers 110
Operating Information:
Full-Time Equivalent City Government Employees by Function111
Operating Indicators by Function 112
Capital Asset Statistics by Function 113
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2
The City 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 and cultural activities and events.
The Council is required to adopt a final budget by no later than the close of the fiscal year.
The annual budget serves as the foundation for the City’s financial planning and control. The
budget is prepared by fund, function (e.g., public safety), and department (e.g. police).
Department heads may use resources within a department as they see fit. The City Manager
may authorize transfers of budgeted amounts between departments.
Local economy
The City 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 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 enjoys a AAA bond rating and a Aaa bond rating from Standard and Poors and
Moody’s, respectively.
Long-term financial planning
The City has begun the process of updating its Comprehensive Plan, which guides
development and redevelopment and addresses changes likely to occur due to various social
and market forces. The Metropolitan Council requires all cities in the seven-county
metropolitan area to have such a plan and State law requires cities to update their plans every
10 years. Edina’s revised Comprehensive Plan is due in 2008.
The City continues to focus on quality of life improvements throughout Edina. 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.
3
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
improvements will need to come from state, county and federal sources, with some minor
portion supported by the local taxpayers.
Relevant financial policies
The City recently adopted a set of financial management policies that focus on long-term
financial planning. Policies cover areas such as cash and investments, the operating budget,
revenue, fund balance, capital outlay, and debt management.
Designations for park dedication, investments, equipment replacement, compensated
absences, and cash flow are all within the ranges specified in the policies. In addition, the
City has $1,194,745 unreserved, undesignated fund balance in the general fund.
Major initiatives
The City is continually working to update our aging infrastructure. Our annually adopted
five-year Capital Improvement Plan includes spending and financing projections for these
projects.
Acknowledgements
The preparation of this report would not have been possible without the dedicated services of
the Finance Department staff. We would like to express our appreciation to all members of
the department who assisted and contributed to the preparation of this report. Credit also
must be given to the Mayor and the City Council for their unfailing support for maintaining
the highest standards of professionalism in the management of the City’s finances.
Respectfully submitted,
John Wallin
Finance Director
Eric Roggeman
Assistant Finance Director
4
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CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2006
Term Expires
Mayor:
James Hovland December 31, 2008
Council Members:
Joni Bennett December 31, 2010
Scot Housh December 31, 2010
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, 2006. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter
of transmittal, which precedes this report.
Financial Highlights
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$138,455,340 (net assets). Of this amount, $21,659,573 (unrestricted net assets) may be
used to meet the City’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 $9,518,467.
• As of the close of the current fiscal year, the City’s governmental funds reported
combined ending fund balances of $32,856,265. Of this total amount, $30,137,178, or
92%, is available for spending at the City’s discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$13,797,189, or 54% of total general fund expenditures.
• The City’s total bonded debt decreased by $16,565,000 during the current fiscal year,
from $68,380,000 to $51,815,000. The City issued no new debt during the year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’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’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 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 include utilities, liquor, aquatic center, golf course and community
activity centers.
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, 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.
The City maintains 4 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, Housing and Redevelopment Authority fund, debt service fund and the
construction fund.
Management’s Discussion and Analysis (Continued)
11
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 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 these budgets.
Proprietary funds. The City 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.
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.
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.
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.
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, assets exceeded liabilities by $138,455,340 at the
close of the most recent fiscal year.
The largest portion of the City's net assets ($116,795,767 or 84%) reflects its investment in
capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending.
Management’s Discussion and Analysis (Continued)
12
Although the City's investment in its capital assets is reported net of related debt, it should be
noted that the resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate these liabilities.
City of Edina’s Net Assets
2006 2005 2006 2005 2006 2005
Current and
other assets41,259,640$ 50,732,285$ 9,491,418$ 13,162,400$ 50,751,058$ 63,894,685$
Capital assets94,526,473 86,694,237 55,071,948 49,664,376 149,598,421 136,358,613
Total assets135,786,113$ 137,426,522$ 64,563,366$ 62,826,776$ 200,349,479$ 200,253,298$
Long-term liabilities
outstanding39,182,228$ 46,150,081$ 7,067,320$ 8,855,261$ 46,249,548$ 55,005,342$
Other liabilities11,509,815 19,308,677 4,134,776 2,805,626 15,644,591 22,114,303
Total liabilities50,692,043$ 65,458,758$ 11,202,096$ 11,660,887$ 61,894,139$ 77,119,645$
Net assets:
Invested in capital
assets, net of
related debt69,814,012$ 36,092,020$ 46,981,755$ 40,044,169$ 116,795,767$ 76,136,189$
Restricted- 78,943 - - - 78,943
Unrestricted15,280,058 35,796,801 6,379,515 11,121,720 21,659,573 46,918,521
Total net assets85,094,070$ 71,967,764$ 53,361,270$ 51,165,889$ 138,455,340$ 123,133,653$
Governmental Activities Business-Type Activities Totals
The remaining balance of unrestricted net assets ($21,659,573) may be used to meet the
City's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in both of the
categories of net assets reported for the government as a whole.
Management’s Discussion and Analysis (Continued)
13
As shown below, the City’s net assets increased by $9,518,467 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Assets
2006 2005 2006 2005 2006 2005
Revenues:
Program revenues:
Charges for services7,671,523$ 6,864,089$ 30,302,318$ 28,577,344$ 37,973,841$ 35,441,433$
Operating grants and
contributions1,423,302 1,512,366 122,358 131,408 1,545,660 1,643,774
Capital grants and
contributions4,013,617 2,252,491 - - 4,013,617 2,252,491
General revenues:
Property taxes20,414,298 19,071,202 - - 20,414,298 19,071,202
Other taxes7,727,208 7,518,165 - - 7,727,208 7,518,165
Gain on disposal of asset8,418 63,674 25,210 22,538 33,628 86,212
Unrestricted investment
earnings1,230,264 977,956 283,771 236,654 1,514,035 1,214,610
Total revenues42,488,630 38,259,943 30,733,657 28,967,944 73,222,287 67,227,887
Expenses:
General government6,493,340 4,967,008 - - 6,493,340 4,967,008
Public safety13,300,351 12,019,027 - - 13,300,351 12,019,027
Public works8,973,031 7,185,784 - - 8,973,031 7,185,784
Parks5,341,682 5,901,648 - - 5,341,682 5,901,648
Interest on long-term debt1,895,370 2,288,524 - - 1,895,370 2,288,524
Utilities- - 9,234,651 8,254,409 9,234,651 8,254,409
Liquor- - 9,968,963 9,749,313 9,968,963 9,749,313
Aquatic center- - 795,614 725,936 795,614 725,936
Golf course- - 3,652,169 3,580,307 3,652,169 3,580,307
Community activity centers- - 4,048,649 3,825,562 4,048,649 3,825,562
Total expenses 36,003,774 32,361,991 27,700,046 26,135,527 63,703,820 58,497,518
Increase in net assets
before transfers6,484,856 5,897,952 3,033,611 2,832,417 9,518,467 8,730,369
Transfers838,230 841,500 (838,230) (841,500) - -
Increase in net assets7,323,086 6,739,452 2,195,381 1,990,917 9,518,467 8,730,369
Net assets - January 1,
previously reported71,967,764 65,228,312 51,165,889 49,174,972 123,133,653 114,403,284
Infrastructure change
(footnote 1P)5,803,220 - - - 5,803,220 -
Net assets - January 1,
as restated77,770,984 65,228,312 51,165,889 49,174,972 128,936,873 114,403,284
Net assets - December 3185,094,070$ 71,967,764$ 53,361,270$ 51,165,889$ 138,455,340$ 123,133,653$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
14
Governmental Activities
Governmental activities increased the City's net assets by $7,323,086, accounting for 77% of
the total growth in net assets. Key elements of this increase are as follows:
• Property tax revenues increased by $1,343,096 (7%) during the year. Most of this
increase is due to a new levy added in 2006 to pay for debt service on the City’s two
new gymnasiums.
• Charges for services increased by $807,434 (12%) during the year due to increases in
permit activity and court fines.
• Capital grants and contributions increased by $1,761,126 (78%)during the year due to
a large Minnesota State Aid (MSA) reimbursement that was applied for and received
during the year.
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Revenues by Source - Governmental Activities
Property taxes
49%
Charges for services
18%
Operating grants and
contributions
3%
Capital grants and
contributions
9%
Other
3%
Other taxes
18%
Management’s Discussion and Analysis (Continued)
15
-
2
4
6
8
10
12
14
Millions
General
government
Public safetyPublic worksParksInterest on
long-term debt
Expenses and Program Revenues - Governmental
Activities
expenses
program revenue
Business-type Activities
Business-type activities increased net assets by $2,195,381 accounting for 23% of the City's
growth in net assets. Key elements of the current year increase are as follows:
• Charges for services for business-type activities increased 6% from 2005. The
Utilities fund charges for services increased $1,181,093 (11.5%) from the previous
year due to increased rates and consumption.
• Business-type activities made net transfers of $838,230 to governmental activities
during 2006 to provide cash flow for operational and capital improvement needs.
Management’s Discussion and Analysis (Continued)
16
Revenues by Source - Business-type Activities
Other
1.0%Operating grants
and contributions
0.4%
Charges for
services
98.6%
-
2
4
6
8
10
12
Millions
UtilitiesLiquorAquatic centerGolf courseCommunity
activity
centers
Expenses and Program Revenues - Business-type
Activities
expenses
program revenue
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.
Management’s Discussion and Analysis (Continued)
17
Governmental Funds. The focus of the City’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 $32,856,265, a decrease of $10,518,608 in comparison with the prior year.
Approximately 92% of this total amount ($30,137,178) constitutes unreserved fund balance.
The remainder of the fund balance is reserved because it has already been committed 1) to
provide for prepaid items ($36,849), 2) to pay committed contracts ($261,972), 3) for special
projects ($225,953), or 4) to pay debt service ($2,194,313).
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 $13,797,189. As a measure of the general
fund’s liquidity, unreserved fund balance represents 54% of total general fund expenditures.
The fund balance of the City’s general fund increased by $2,015,254 during the current fiscal
year. Key factors in this growth are as follows:
• Total general fund revenues increased by 6.7% in the current fiscal year. The largest
increase was in the fines and forfeits category, which increased 38%.
• Total general fund expenditures increased 6.2% in the current fiscal year. Current
expenditures increased in all four functional areas (general government, public safety,
public works, and parks), and were very close to the increase planned for in our 2006
budget, which projected an expenditure increase of 5.7%.
• The liquor fund transferred $700,230 of profits to the general fund.
The Housing and Redevelopment Authority fund balance increased by $656,819 in the
current fiscal year.
The debt service fund has a total fund balance of $2,194,313, all of which is reserved for the
payment of debt service.
The construction fund balance decreased by $4,321,573 in 2006 due to construction costs for
two new gymnasiums, which was financed with a bond issue in 2005 and ongoing street
reconstruction costs to be financed with special assessments.
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 increased by 11.6% and 12.3%,
respectively, in 2006, due to 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 $5,407,572 from 2005.
Management’s Discussion and Analysis (Continued)
18
The liquor fund made transfers totaling $995,230 to other funds during 2006. The majority of
this amount ($700,230) was transferred to the general fund according to the budget. Smaller
transfers were also made to the construction fund and to nonmajor proprietary funds.
Aquatic center revenues increased 2% in 2006 after a very good year in 2005.
Operating revenues for the golf course fund increased by 4.6% in 2006, but were offset by
increased expenses. Combined with the effects of increasing expenses, the golf course fund
lost $5,549 in 2006.
Budgetary Highlights
General Fund. There were no changes made to the original budget. During the year,
revenues and expenditures exceeded budgetary estimates, and since increased revenues easily
covered the increased expenditures, there was no need to draw upon existing fund balance.
Major variances from budget include revenues from licenses and permits that exceeded
budget by $1,201,590 due to high activity in the City’s Inspections department. The City also
exceeded budgeted revenues in several other categories, mostly due to increases in demand
for City services, some of which we receive revenue for.
There were no major variances from budgeted expenditures, although there were many
smaller variances mostly due to the erratic nature of spending for the replacement of the
City’s equipment.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business type
activities as of December 31, 2006, amounted to $149,598,421 (net of accumulated
depreciation). This investment in capital assets included land, land improvements, buildings,
vehicles and equipment.
Major capital asset events during the current fiscal year included the following:
• Two new Gymnasiums were completed in 2006 after starting construction in 2005.
• A variety of street construction, sidewalk and traffic signal projects began in 2006;
construction in progress as of the close of the year reached $13,855,020.
Management’s Discussion and Analysis (Continued)
19
City of Edina’s Capital Assets
(Net of Depreciation)
2006 2005 2006 2005 2006 2005
Land and land
improvements27,634,036$ 28,392,856$ 5,437,869$ 5,553,727$ 33,071,905$ 33,946,583$
Buildings and
improvements29,644,961 30,219,684 7,306,756 7,747,988 36,951,717 37,967,672
Machinery and equipment8,573,184 8,859,303 2,297,256 2,296,740 10,870,440 11,156,043
Infrastructure20,645,464 19,629,680 34,203,875 31,432,356 54,849,339 51,062,036
Construction in progress8,028,828 5,395,934 5,826,192 2,633,565 13,855,020 8,029,499
Total94,526,473$ 92,497,457$ 55,071,948$ 49,664,376$ 149,598,421$ 142,161,833$
Governmental Activities Business-Type Activities Totals
The City restated infrastructure assets as of January 1, 2006, to comply with GASB 34 and
related statements and this chart reflects the adjusted balances. Additional information about
this change can be found in Note 1P.
Additional information on the City’s capital assets can be found in Note 4.
Long-term debt. At the end of the current fiscal year, the City had total bonded long-term
debt outstanding of $51,815,000, a decrease of $16,565,000 from 2005.
$5,670,000 is for general obligation improvement debt that is supported by property tax
levies and special assessments. This amount decreased from 2005 due to the issuance of
crossover refunding bonds in 2005 to refund general obligation bonds on their call date of
February 1, 2006.
$1,460,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s
special assessment program.
An additional $20,460,000 of general obligation tax increment debt financed the City’s
economic development program. This amount decreased in 2006 due to a crossover
refunding initiated in 2005 in addition to regularly scheduled principal payments on other
issues.
Also outstanding is $16,080,000 public project revenue bonds which financed the City Hall
and Police facility as well as two gymnasiums.
There is a total of $8,145,000 in revenue bonds for improvements to the enterprise funds.
Management’s Discussion and Analysis (Continued)
20
City of Edina’s Outstanding Debt
2006 2005 2006 2005 2006 2005
Tax increment bonds20,460,000$ 28,905,000$ -$ -$ 20,460,000$ 28,905,000$
General obligation bonds5,670,000 11,765,000 - - 5,670,000 11,765,000
Public improvement bonds1,460,000 1,460,000 - - 1,460,000 1,460,000
Public project revenue bonds16,080,000 16,560,000 - - 16,080,000 16,560,000
Revenue bonds- - 8,145,000 9,690,000 8,145,000 9,690,000
Total43,670,000$ 58,690,000$ 8,145,000$ 9,690,000$ 51,815,000$ 68,380,000$
Governmental Activities Business-Type Activities Totals
The City maintains an Aaa rating from Moody's and an 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 $188,282,998. Only
$3,690,954 of the City's outstanding debt is counted within the statutory limitation.
Additional information on the City’s long-term debt can be found in Note 5.
Economic Factors and Next Year’s Budget
The City strives to provide an uncommonly high quality of life for our residents and
businesses and the healthy local economy helps to make this goal a reality. The
unemployment rate in Edina for February 2007 was 3.0%, well below the state and national
levels. In fact, according to the State of Minnesota Department of Employment and
Economic Development, the City’s unemployment rate has been lower than the national rate
every month since at least 1990. The City is home to Southdale Center, the nation’s first fully
enclosed climate-controlled regional shopping mall, Fairview Southdale hospital, as well as
several corporate headquarters. In addition to its healthy economy, Edina is known for
excellent public schools, as the Edina school system has been consistently selected as one of
the best in the country. Ninety-seven percent of seniors go to college and eighty-six percent
finish in five years.
Property values in Edina have been increasing at a rapid pace for several years. Estimated
market value of all parcels increased over 10% for taxes payable in 2007 after a 8% increase
the year before. The City Council is currently reviewing several redevelopment projects that
would make this trend likely to continue.
Management’s Discussion and Analysis (Continued)
21
Market Value and Tax Capacity
Annual Changes
-25.0%-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
1997199819992000200120022003200420052006
Tax Capacity
Market Value
The City collects property taxes based on tax capacity, which roughly equals estimated
market value multiplied by class rates for different types of parcels (commercial, residential,
etc.). Class rates are set by state statute. Tax capacity increased over 11% for taxes payable in
2007, and has been increasing steadily ever since the state revised property tax law in 2001.
Due to the recent increases in market value and tax capacity, property tax rates have been
decreasing since the property tax law changes mentioned earlier.
The City’s adopted 2007 budget includes a property tax levy of $19,427,890 for the general
fund, an increase of 4.7% from the 2006 general fund levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all
those with an interest in the government’s finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be
addressed to the Office of the Finance Director, 4801 West 50th Street, Edina, Minnesota
55424. The City’s Comprehensive Annual Financial Report can also be found on the internet
at www.cityofedina.com.
22
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CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS Statement 1
December 31, 2006
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Assets:
Current assets:
Cash and cash equivalents80,364$ 102,798$ 183,162$
Investments35,169,247 4,672,647 39,841,894
Accrued interest 76,908 43,552 120,460
Accounts receivable, net362,089 3,368,984 3,731,073
Special assessments receivable4,772,621 168,274 4,940,895
Due from other governments492,636 1,687 494,323
Prepaid items36,849 - 36,849
Inventory- 1,112,458 1,112,458
Total current assets40,990,714 9,470,400 50,461,114
Noncurrent assets:
Deferred charges268,926 21,018 289,944
Nondepreciable capital assets 25,344,392 6,915,157 32,259,549
Depreciable capital assets (net)69,182,081 48,156,791 117,338,872
Total noncurrent assets94,795,399 55,092,966 149,888,365
Total assets135,786,113 64,563,366 200,349,479
Liabilities:
Current liabilities:
Accounts payable2,502,378 1,002,505 3,504,883
Salaries payable369,942 99,865 469,807
Accrued interest payable655,841 141,161 797,002
Contracts payable219,015 146,649 365,664
Pooled cash payable175,000 550,000 725,000
Due to other governments46,181 133,315 179,496
Deposits payable 70,925 19,464 90,389
Unearned revenue2,520 79,411 81,931
Compensated absences payable1,278,013 367,406 1,645,419
Bonds payable6,190,000 1,595,000 7,785,000
Total current liabilities11,509,815 4,134,776 15,644,591
Noncurrent liabilities:
Compensated absences payable1,917,020 551,109 2,468,129
Bonds payable, net of unamortized discount37,265,208 6,516,211 43,781,419
Total noncurrent liabilities39,182,228 7,067,320 46,249,548
Total liabilities50,692,043 11,202,096 61,894,139
Net assets:
Invested in capital assets, net of related debt69,814,012 46,981,755 116,795,767
Unrestricted15,280,058 6,379,515 21,659,573
Total net assets85,094,070$ 53,361,270$ 138,455,340$
Primary Government
The accompanying notes are an integral part of these financial statements
23
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2006
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government6,493,340$ 731,613$ 187,674$ -$
Public safety13,300,351 6,146,114 1,017,531 -
Public works8,973,031 352,354 195,000 4,013,617
Parks5,341,682 441,442 23,097 -
Interest on long-term debt1,895,370 - - -
Total government activities36,003,774 7,671,523 1,423,302 4,013,617
Business-type activities:
Utilities9,234,651 11,421,474 109,348 -
Liquor9,968,963 11,029,445 - -
Aquatic center795,614 867,626 - -
Golf course3,652,169 3,646,620 - -
Community activity centers4,048,649 3,337,153 13,010 -
Total business-type activities27,700,046 30,302,318 122,358 -
Total primary government 63,703,820$ 37,973,841$ 1,545,660$ 4,013,617$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
Statement 2
GovernmentalBusiness-type
ActivitiesActivitiesTotal
(5,574,053)$ -$ (5,574,053)$
(6,136,706) - (6,136,706)
(4,412,060) - (4,412,060)
(4,877,143) - (4,877,143)
(1,895,370) - (1,895,370)
(22,895,332) - (22,895,332)
- 2,296,171 2,296,171
- 1,060,482 1,060,482
- 72,012 72,012
- (5,549) (5,549)
- (698,486) (698,486)
- 2,724,630 2,724,630
(22,895,332) 2,724,630 (20,170,702)
General revenues:
Property taxes20,414,298 - 20,414,298
Tax increment collections7,228,002 - 7,228,002
Franchise taxes499,206 - 499,206
Unrestricted investment earnings1,230,264 283,771 1,514,035
Gain on disposal of capital assets8,418 25,210 33,628
Transfers838,230 (838,230) -
Total general revenues and transfers30,218,418 (529,249) 29,689,169
Change in net assets7,323,086 2,195,381 9,518,467
Net assets - beginning, as restated77,770,984 51,165,889 128,936,873
Net assets - ending85,094,070$ 53,361,270$ 138,455,340$
Net (Expense) Revenue and
Changes in Net Assets
25
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26
CITY OF EDINA, MINNESOTA
BALANCE SHEET Statement 3
GOVERNMENTAL FUNDS
December 31, 2006
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Assets
Cash and cash equivalents55,054$ 9,058$ 5,449$ 8,568$ 2,235$ 80,364$
Investments - unrestricted13,425,777 12,990,459 1,798,597 6,333,325 621,089 35,169,247
Accrued interest - 57,389 21 15,050 4,448 76,908
Accounts receivable208,310 - - 13,544 140,235 362,089
Special assessments receivable- - 1,384,170 3,388,451 - 4,772,621
Due from other funds1,750,000 79,299 375,000 - 13,000 2,217,299
Due from other governments421,490 33,237 15,741 9,972 12,196 492,636
Prepaid items36,849 - - - - 36,849
Total assets15,897,480$ 13,169,442$ 3,578,978$ 9,768,910$ 793,203$ 43,208,013$
Liabilities and fund balances
Liabilities:
Accounts payable1,353,516$ 656,987$ 495$ 399,947$ 91,433$ 2,502,378$
Salaries payable365,482 - - 562 3,898 369,942
Contracts payable - - - 219,015 - 219,015
Pooled cash payable- - - 175,000 - 175,000
Due to other funds279,299 - - 1,925,000 13,000 2,217,299
Due to other governments7,145 14,903 - 24,133 - 46,181
Deposits payable58,000 - - 12,925 - 70,925
Unearned revenue- - - - 2,520 2,520
Deferred revenue- - 1,384,170 3,364,318 - 4,748,488
Total liabilities2,063,442 671,890 1,384,665 6,120,900 110,851 10,351,748
Fund balance:
Reserved for:
Prepaid items36,849 - - - - 36,849
Encumbrances- - - 261,972 - 261,972
Special projects- - - 225,953 - 225,953
Debt service- - 2,194,313 - - 2,194,313
Unreserved:
Designated, reported in:
General Fund12,602,444 - - - - 12,602,444
Capital Project Funds- - - 3,160,085 - 3,160,085
Undesignated, reported in:
General Fund1,194,745 - - - - 1,194,745
Special Revenue Funds- 12,497,552 - - 682,352 13,179,904
Total fund balance13,834,038 12,497,552 2,194,313 3,648,010 682,352 32,856,265
Total liabilities and
fund balances15,897,480$ 13,169,442$ 3,578,978$ 9,768,910$ 793,203$ 43,208,013$
Fund balance reported above 32,856,265$
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 funds94,526,473
Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds4,748,488
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds.(47,037,156)
Net assets of governmental activities 85,094,070$
The accompanying notes are an integral part of these financial statements.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND Statement 4
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2006
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes18,166,020$ -$ 2,248,278$ -$ -$ 20,414,298$
Tax increment collections- 7,228,002 - - - 7,228,002
Special assessments- - 85,656 1,665,563 - 1,751,219
Franchise fees- - - - 499,206 499,206
License and permits3,458,140 - - 30,757 - 3,488,897
Intergovernmental1,049,523 - - 1,536,153 187,674 2,773,350
Charges for services2,641,720 - - 49,634 - 2,691,354
Fines and forfeitures1,023,935 - - - - 1,023,935
Investment income298,299 422,015 57,641 427,156 25,153 1,230,264
Rental of property308,535 - - 1,610 - 310,145
Other revenues112,418 - - 90,513 43,866 246,797
Total revenues27,058,590 7,650,017 2,391,575 3,801,386 755,899 41,657,467
Expenditures:
Current:
General government3,955,036 1,165,686 - 70,508 804,574 5,995,804
Public safety12,273,940 - - 157,174 - 12,431,114
Public works5,021,311 - - 212,596 - 5,233,907
Parks3,185,088 - - 115,287 - 3,300,375
Capital outlay:
General government2,501 - - 77,462 - 79,963
Public safety899,462 - - 175,002 - 1,074,464
Public works316,615 - - 3,126,805 - 3,443,420
Parks94,070 - - 4,288,609 - 4,382,679
Debt service:
Bond principal - - 5,985,000 - - 5,985,000
Interest and fiscal charges- - 2,107,036 - - 2,107,036
Total expenditures25,748,023 1,165,686 8,092,036 8,223,443 804,574 44,033,762
Revenues over
(under) expenditures1,310,567 6,484,331 (5,700,461) (4,422,057) (48,675) (2,376,295)
Other financing sources (uses):
Transfers in700,230 - 5,915,028 250,000 - 6,865,258
Transfers out(50,000) (5,827,512) - (149,516) - (6,027,028)
Sale of capital assets54,457 - - - - 54,457
Principal paid by escrow- - (9,035,000) - - (9,035,000)
Total other financing
sources (uses)704,687 (5,827,512) (3,119,972) 100,484 - (8,142,313)
Net increase (decrease)
in fund balance2,015,254 656,819 (8,820,433) (4,321,573) (48,675) (10,518,608)
Fund balance - January 111,818,784 11,840,733 11,014,746 7,969,583 731,027 43,374,873
Fund balance - December 3113,834,038$ 12,497,552$ 2,194,313$ 3,648,010$ 682,352$ 32,856,265$
The accompanying notes are an integral part of these financial statements.
28
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, 2006
Amounts reported for governmental activities in the
statement of activities (page 24-25) are different because:
Net changes in fund balances - total governmental funds (page 28)(10,518,608)$
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.2,103,511
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 sold.(74,495)
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.822,745
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. Also, governmental funds report the effect of issuance
costs, premiums, discounts and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the statement of
activities. This amount is the net effect of these differences in the
treatment of long-term debt and related items.15,020,000
Some expenses reported in the statement of activities do not require the
use of current financial resources (accrued interest and amortization on
debt and compensated absences payable) and, therefore, are not(30,067)
reported as expenditures in governmental funds.
Change in net assets of governmental activities (page 25)7,323,086$
The accompanying notes are an integral part of these financial statements.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS Statement 6
PROPRIETARY FUNDS
December 31, 2006
Nonmajor
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Assets:
Current assets:
Cash and cash equivalents4,700$ 28,422$ 5,626$ 15,616$ 48,434$ 102,798$
Investments301,245 - - - 4,371,402 4,672,647
Interest receivable12,245 - - - 31,307 43,552
Accounts receivable, net3,153,268 - 510 1,039 214,167 3,368,984
Special assessments receivable168,274 - - - - 168,274
Due from other funds- 1,025,000 800,000 - - 1,825,000
Due from other governments1,687 - - - - 1,687
Inventory5,339 1,039,845 - 51,409 15,865 1,112,458
Total current assets3,646,758 2,093,267 806,136 68,064 4,681,175 11,295,400
Noncurrent assets:
Deferred charges11,428 - 2,398 4,411 2,781 21,018
Net capital assets41,567,645 1,356,755 2,317,234 5,728,123 4,102,191 55,071,948
Total noncurrent assets41,579,073 1,356,755 2,319,632 5,732,534 4,104,972 55,092,966
Total assets45,225,831 3,450,022 3,125,768 5,800,598 8,786,147 66,388,366
Liabilities:
Current liabilities:
Accounts payable511,816 241,055 445 64,518 184,671 1,002,505
Salaries payable18,188 29,908 319 19,501 31,949 99,865
Accrued interest payable49,881 - 24,578 57,379 9,323 141,161
Contracts payable146,649 - - - - 146,649
Pooled cash payable- - - 550,000 - 550,000
Due to other funds1,425,000 - - 340,000 60,000 1,825,000
Due to other governments1,614 120,335 526 5,479 5,361 133,315
Deposits payable15,681 - - 3,783 - 19,464
Unearned revenue- 4,274 - 21,029 54,108 79,411
Compensated absences payable 83,684 74,723 - 98,225 110,774 367,406
Bonds payable - current690,000 - 115,000 590,000 200,000 1,595,000
Total current liabilities2,942,513 470,295 140,868 1,749,914 656,186 5,959,776
Noncurrent liabilities:
Compensated absences payable125,527 112,085 - 147,336 166,161 551,109
Bonds payable, net of
unamortized discounts2,845,889 - 1,072,556 2,154,476 443,290 6,516,211
Total noncurrent liabilities2,971,416 112,085 1,072,556 2,301,812 609,451 7,067,320
Total liabilities5,913,929 582,380 1,213,424 4,051,726 1,265,637 13,027,096
Net assets:
Invested in capital assets,
net of related debt38,043,184 1,356,755 1,132,076 2,988,058 3,461,682 46,981,755
Unrestricted1,268,718 1,510,887 780,268 (1,239,186) 4,058,828 6,379,515
Total net assets39,311,902$ 2,867,642$ 1,912,344$ 1,748,872$ 7,520,510$ 53,361,270$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
30
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Nonmajor
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Operating revenues:
Sales - liquor-$ 11,014,491$ -$ 108,898$ -$ 11,123,389$
Sales - retail- - 4,173 284,204 77,048 365,425
Sales - utilities11,178,314 - - - - 11,178,314
Sales - concessions- - 113,066 238,162 28,765 379,993
Memberships- - 449,957 113,899 80,120 643,976
Admissions- - 278,150 319,653 521,686 1,119,489
Building rental- - 22,280 71,332 1,365,810 1,459,422
Rental of equipment- - - 398,833 56,225 455,058
Greens fees- - - 1,772,173 165,649 1,937,822
Other fees238,047 - - 336,649 1,041,850 1,616,546
Total operating revenues11,416,361 11,014,491 867,626 3,643,803 3,337,153 30,279,434
Operating expenses:
Cost of sales and services38,847 8,111,021 32,477 378,055 41,555 8,601,955
Personal services1,381,144 1,188,028 270,889 1,682,997 1,814,725 6,337,783
Contractual services5,293,230 355,934 120,804 559,631 1,267,403 7,597,002
Commodities671,100 63,039 98,375 356,662 309,595 1,498,771
Central Services385,229 169,262 30,009 103,473 177,174 865,147
Depreciation1,337,593 73,087 192,284 441,148 417,085 2,461,197
Total operating expenses9,107,143 9,960,371 744,838 3,521,966 4,027,537 27,361,855
Operating income (loss)2,309,218 1,054,120 122,788 121,837 (690,384) 2,917,579
Nonoperating revenues (expenses):
Intergovernmental109,348 - - - - 109,348
Investment income103,124 - - - 180,647 283,771
Donations- - - - 13,010 13,010
Miscellaneous 5,113 14,954 - 2,817 - 22,884
Interest and fiscal charges(121,364) - (49,671) (116,017) (18,866) (305,918)
Gain (loss) on sale of capital asset16,059 (8,592) - (8,695) 9,151 7,923
Amortization of bond discount(6,144) - (1,105) (5,491) (2,246) (14,986)
Total nonoperating
revenues (expenses)106,136 6,362 (50,776) (127,386) 181,696 116,032
Income (loss) before transfers2,415,354 1,060,482 72,012 (5,549) (508,688) 3,033,611
Transfers:
Transfers in- - - - 257,000 257,000
Transfers out(100,000) (995,230) - - - (1,095,230)
Total transfers (100,000) (995,230) - - 257,000 (838,230)
Change in net assets2,315,354 65,252 72,012 (5,549) (251,688) 2,195,381
Net assets - January 1 36,996,548 2,802,390 1,840,332 1,754,421 7,772,198 51,165,889
Net assets - December 3139,311,902$ 2,867,642$ 1,912,344$ 1,748,872$ 7,520,510$ 53,361,270$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
31
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Nonmajor
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Cash flows from operating activities:
Receipts from customers and users10,316,252$ 11,016,176$ 867,116$ 3,657,461$ 3,258,506$ 29,115,511$
Payment to suppliers(5,940,326) (8,747,388) (282,439) (1,431,847) (1,739,706) (18,141,706)
Payment to employees(1,357,826) (1,150,274) (270,922) (1,663,346) (1,786,183) (6,228,551)
Donations- - - - 13,010 13,010
Miscellaneous revenue5,113 14,954 - 2,817 - 22,884
Net cash provided by
(used in) operating activities3,023,213 1,133,468 313,755 565,085 (254,373) 4,781,148
Cash flows from noncapital financing activities:
State grant109,348 - - - - 109,348
Transfer (to) from Enterprise Funds- (195,000) - - 195,000 -
Transfer (to) from General Fund- (700,230) - - - (700,230)
Transfer (to) from Capital Project Funds(100,000) (100,000) - - 62,000 (138,000)
Net interfund borrowing1,145,000 (245,000) (170,000) 260,000 60,000 1,050,000
Net cash provided by (used in)
noncapital financing activities1,154,348 (1,240,230) (170,000) 260,000 317,000 321,118
Cash flows from capital and related financing activities:
Acquisition of capital assets(7,503,269) (8,592) (35,333) (138,996) (215,600) (7,901,790)
Sale of capital assets18,614 (8,592) - 21,472 9,450 40,944
Principal paid on bonds(665,000) - (105,000) (575,000) (200,000) (1,545,000)
Interest paid on bonds(129,607) - (51,461) (125,865) (21,935) (328,868)
Net cash provided by (used in)
capital and related financing activities(8,279,262) (17,184) (191,794) (818,389) (428,085) (9,734,714)
Cash flows from investing activities:
Net changes in investments3,999,137 - - - 153,902 4,153,039
Investment income102,743 - - - 186,098 288,841
Net cash flows provided by
(used in) investing activities4,101,880 - - - 340,000 4,441,880
Net increase (decrease)
in cash and cash equivalents179 (123,946) (48,039) 6,696 (25,458) (190,568)
Cash and cash equivalents - January 14,521 152,368 53,665 8,920 73,892 293,366
Cash and cash equivalents - December 314,700$ 28,422$ 5,626$ 15,616$ 48,434$ 102,798$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Nonmajor
AquaticGolfEnterprise
UtilitiesLiquorCenterCourseFundsTotal
Business-type Activities - Enterprise Funds
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 2,309,218$ 1,054,120$ 122,788$ 121,837$ (690,384)$ 2,917,579$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation1,337,593 73,087 192,284 441,148 417,085 2,461,197
Donations- - - - 13,010 13,010
Miscellaneous revenue5,113 14,954 - 2,817 - 22,884
Changes in assets and liabilities:
Decrease (increase) in receivables(1,084,790) - (510) 51 (80,234) (1,165,483)
Decrease (increase) in
special assessments(17,114) - - - - (17,114)
Decrease (increase) in
due from other governments1,795 - - - - 1,795
Decrease (increase) in inventory18,812 15,269 - (36,511) (37) (2,467)
Increase (decrease) in accounts payable269,856 (61,343) (221) 8,271 56,400 272,963
Increase (decrease) in salaries payable4,096 12,596 (33) 2,533 8,704 27,896
Increase (decrease) in contracts payable145,819 - - - - 145,819
Increase (decrease) in
due to other governments(116) (2,058) (553) 28 (342) (3,041)
Increase (decrease) in deposits13,709 - - (5,814) - 7,895
Increase (decrease) in unearned revenue- 1,685 - 13,607 1,587 16,879
Increase (decrease) in
compensated absences19,222 25,158 - 17,118 19,838 81,336
Total adjustments713,995 79,348 190,967 443,248 436,011 1,863,569
Net cash provided by
(used in) operating activities3,023,213$ 1,133,468$ 313,755$ 565,085$ (254,373)$ 4,781,148$
The accompanying notes are an integral part of these financial statements.
33
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS Statement 9
AGENCY FUNDS
December 31, 2006
Agency Funds
Assets
Cash 542,839$
Investments 270,000
Total assets 812,839$
Liabilities
Accounts payable 48,215$
Salaries payable 1,607
Due to other governmental units 763,017
Total liabilities 812,839$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
35
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 accounting principles generally
accepted in the United States of America (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 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 Special Revenue
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 City.
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, 2006
36
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. The City’s only fiduciary fund type, agency funds, are custodial in
nature and do not have a measurement focus. 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. 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, 2006
37
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 special revenue Housing and Redevelopment Authority 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 debt service fund accounts for the payment of principal and interest on the Tax
Increment, General Obligation, Permanent Improvement Revolving, and Public Project
Revenue Bonds.
The capital projects construction fund accounts for the various special assessment and state
aid projects throughout the City. This fund also provides 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 and the payroll fund accounts for payroll deductions
withheld from employee paychecks but not yet sent to the appropriate party (includes federal
and state taxes, health care deductions, etc).
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, 2006
38
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 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 deposits and cash on hand for purposes
of the cash flow statement.
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 may at times show a temporary cash overdraft of
all funds in the aggregate. When this happens, the overdraft will appear in the financial statements
as pooled cash payable.
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 change 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, 2006
39
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, 2006 are planned to be
eliminated in 2007. 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, 2006
40
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, 2006
41
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. Infrastructure assets include all of the City’s assets since inception.
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, 2006
42
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 plus any premium received is reported as other financing sources. 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, 2006
43
N. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting
principles 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. CHANGES IN ACCOUNTING PRINCIPLE
The Governental Accounting Standards Board (GASB) issued Statement No. 34, Basic Financial
Statements – and Management’s Discussion and Analysis – for State and Local Governments,
Statement No. 37, Basic Financial Statements – and Management’s Discussion and Analysis – for
State and Local Governments – Omnibus, and Statement No. 38, Certain Financial Statement
Note Disclosures. These statements collectively comprise a change in financial reporting
requirements for state and local governments. The City of Edina began implementation of these
changes during fiscal year 2003, as required by the statements. In 2003, the City began
prospective reporting of all general infrastructure assets in the Statement of Net Assets, but
elected to delay retroactive reporting of roadway infrastructure assets until an accurate inventory
could be completed. The City completed an inventory of roadway infrastructure assets in 2006.
As a result of changes in the City’s infrastructure inventory, the previously reported governmental
activities net assets as of December 31, 2005 reconcile to the governmental net assets, as restated
in the current report, as follows:
Governmental activities net assets, previously reported71,967,764$
Historical cost of infrastructure added43,230,246
Accumulated depreciation on added assets(37,427,026)
Governmental activities net assets, as restated77,770,984$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
44
Note 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL
STATEMENTS
A. 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 payable43,670,000$
Plus: issuance premium61,498
Less: issuance discount(276,290)
Less: deferred charge for issuance costs(268,926)
Accrued interest payable655,841
Compensated absences3,195,033
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities47,037,156$
B. 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:
Capital outlay6,727,940$
Depreciation expense(4,624,429)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental funds2,103,511$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
45
Another element of that reconciliation states that “Some expenses reported in the statement of
activities do not require the use of current financial resources and therefore are not reported
as expenditures in governmental funds.” The details of this difference are as follows:
Compensated absences(241,733)$
Accrued interest297,897
Amortization of issuance costs(58,433)
Amortization of bond discounts(27,798)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities(30,067)$
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits(15,885)$
Cash on hand16,886
Investments40,111,894
40,112,895$
Cash and investments are presented in the financial statements as follows:
Cash and cash equivalents - Statement of Net Assets183,162$
Investments - Statement of Net Assets39,841,894
Pooled cash payable - Statement of Net Assets(725,000)
Cash and investments - Statement of Fiduciary Net Assets812,839
40,112,895$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
46
B. DEPOSITS
In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
authorized by the City Council, including checking accounts, savings accounts and certificates of
deposit.
The following is considered the most significant risk associated with deposits:
Custodial credit risk – In the case of deposits, this is the risk that in the event of a bank
failure, the City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance,
corporate surety bond, or collateral. The market value of collateral pledged must equal
110% of the deposits not covered by federal deposit insurance or corporate surety bonds.
Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government
agencies; general obligations rated “A” or better; revenue obligations rated “AA” or
better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and
certificates of deposit. Minnesota Statutes require that securities pledged as collateral be
held in safekeeping in a restricted account at the Federal Reserve Bank or in an account
at a trust department of a commercial bank or other financial institution that is not owned
or controlled by the financial institution furnishing the collateral. The City’s investment
policy does not contain further restrictions on the types of collateral required.
At year-end, the carrying amount of the City’s deposits was ($15,885) while the balance
on the bank records was $1,182,339. At December 31, 2006, all deposits were fully
covered by federal depository insurance, surety bonds, or by collateral held by the City’s
agent in the City’s name.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
47
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 5 to 10 10 +Total
U.S. TreasuriesN/AN/A-$ 67,399$ 576,417$ 603,019$ 1,246,835$
GNMAN/AN/A- - - 63,181 63,181
SBA PoolsN/RN/A- - 203,390 1,043,304 1,246,694
U.S. AgenciesAA-/Aa2S&P/Mdy's- - 247,519 - 247,519
U.S. AgenciesAAA/AaaS&P/Mdy's1,542,777 2,246,268 367,877 3,703,554 7,860,476
MunicipalsAS&P- 14,856 - - 14,856
MunicipalsAA-/Aa2S&P/Mdy's19,869 29,125 - - 48,994
MunicipalsAAA/Aa1S&P/Mdy's30,283 127,777 76,937 10,247 245,244
MunicipalsSP1/MIG1S&P/Mdy's10,000 - - - 10,000
Commercial PaperA1/P1/S&P/Mdy's/
F1Fitch24,286,427 - - - 24,286,427
Negotiable CD'sN/RN/A934,700 - - - 934,700
Interfund DebtN/RN/A1,400,000 - - - 1,400,000
28,224,056$ 2,485,425$ 1,472,140$ 5,423,305$ 37,604,926
Money Market*AAAS&P2,484,060
Money Market*N/RN/A22,908
Total investments 40,111,894$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments don't have maturities
Credit Risk
Investment
Interest Risk - Maturity Duration in Years
Investments are subject to various risks, the following of which are considered the most
significant:
Custodial credit risk – For investments, this is the risk that in the event of a failure of
the counterparty to an investment transaction (typically a broker-dealer) the City would
not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City’s investment policy specifically addresses
custodial credit risk, requiring the City to limit its exposure by purchasing insured or
registered investments, or by the control of who holds the securities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
48
Credit risk – This is the risk that an issuer or other counterparty to an investment will
not fulfill its obligations. Minnesota Statutes limit the City’s investments to direct
obligations or obligations guaranteed by the United States or its agencies; shares of
investment companies registered under the Federal Investment Company Act of 1940
that receive the highest credit rating, are rated in one of the two highest rating categories
by a statistical rating agency, and all of the investments have a final maturity of thirteen
months or less; general obligations rated “AA” or better; general obligations of the
Minnesota Housing Finance Agency rated “A” or better; bankers’ acceptances of United
States banks eligible for purchase by the Federal Reserve System; commercial paper
issued by United States corporations or their Canadian subsidiaries, rated of the highest
quality category by at least two nationally recognized rating agencies, and maturing in
270 days or less; Guaranteed Investment Contracts guaranteed by a United States
commercial bank, domestic branch of a foreign bank, or a United States insurance
company, and with a credit quality in one of the top two highest categories; repurchase or
reverse repurchase agreements and securities lending agreements with financial
institutions qualified as a “depository” by the government entity, with banks that are
members of the Federal Reserve System with capitalization exceeding $10,000,000, that
are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank
of New York, or certain Minnesota securities broker-dealers. The City’s investment
policies specifically address credit risk, further limiting the City’s exposure to credit risk
by requiring that all state and local government obligations to be rated “AA” or better by
a national rating agency.
Concentration risk – This is the risk associated with investing a significant portion of
the City’s investment (considered 5 percent or more) in the securities of a single issuer,
excluding U.S. guaranteed investments (such as Treasuries), investment pools, and
mutual funds. The City’s investment policies specifically address the City’s desire to
limit concentration risk, but do not set specific guidelines for measurement of this risk.
At year-end, the City’s investments include 6.97%, 12.37%, and 12.35% in securities
issued by FNMA, General Electric, and New Center, respectively.
Interest rate risk – This is the risk of potential variability in the fair value of fixed rate
investment resulting in changes in interest rates (the longer the period for which an
interest rate is fixed, the greater the risk). The City’s investment policies specifically
address the City’s desire to limit interest rate risk, but do not set specific guidelines for
measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
49
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2006 is as follows:
Beginning
Balance,Ending
As Restated Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land15,783,410$ 79,689$ -$ 15,863,099$
Investment in joint venture1,452,465 - - 1,452,465
Construction in progress5,395,934 8,150,950 (5,518,056) 8,028,828
Total capital assets not being depreciated22,631,809 8,230,639 (5,518,056) 25,344,392
Capital assets being depreciated:
Land improvements21,717,062 - - 21,717,062
Buildings and structures30,413,428 - - 30,413,428
Furniture and office equipment2,579,251 43,483 (42,255) 2,580,479
Vehicles and equipment12,536,853 1,154,688 (693,894) 12,997,647
Infrastructure60,618,207 2,309,526 - 62,927,733
Parks10,955,421 660,524 (53,402) 11,562,543
Total capital assets being depreciated138,820,222 4,168,221 (789,551) 142,198,892
Less accumulated depreciation for:
Land improvements(9,107,616) (838,509) - (9,946,125)
Buildings and structures(7,588,497) (810,021) - (8,398,518)
Furniture and office equipment(774,193) (192,534) 50,208 (916,519)
Vehicles and equipment(5,482,608) (1,084,672) 478,857 (6,088,423)
Infrastructure(40,988,527) (1,293,742) - (42,282,269)
Parks(5,013,133) (404,951) 33,127 (5,384,957)
Total accumulated depreciation(68,954,574) (4,624,429) 562,192 (73,016,811)
Total capital assets being depreciated, net69,865,648 (456,208) (227,359) 69,182,081
Governmental activities capital assets, net92,497,457$ 7,774,431$ (5,745,415)$ 94,526,473$
Certain capital assets were reclassified to different categories during the year, and these reclassifications
are reflected in the “Increases” and “Decreases” columns above.
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. As a result of implementing this
statement using the phase-in period, the City has retroactively added historical costs for streets and right-
of-way in this schedule as of January 1, 2006. The previously reported capital assets historical cost was
increased by $43,230,246 and accumulated depreciation was increased by $37,427,026 for a net total of
$5,803,220 due to this change.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
50
BeginningEnding
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress2,633,565 6,767,629 (3,575,002) 5,826,192
Total capital assets not being depreciated3,722,530 6,767,629 (3,575,002) 6,915,157
Capital assets being depreciated:
Land improvements & golf course7,935,804 194,291 (9,616) 8,120,479
Buildings and structures15,762,208 182,625 (37,800) 15,907,033
Furniture and office equipment149,436 - - 149,436
Vehicles and equipment4,822,084 385,206 (322,812) 4,884,478
Utility infrastructure54,476,004 3,947,041 (122,043) 58,301,002
Lease property capital lease468,580 - - 468,580
Total capital assets being depreciated83,614,116 4,709,163 (492,271) 87,831,008
Less accumulated depreciation for:
Land improvements & golf course(3,471,042) (310,149) 9,616 (3,771,575)
Buildings and structures(8,014,220) (623,557) 37,500 (8,600,277)
Furniture and office equipment(86,003) (21,157) - (107,160)
Vehicles and equipment(2,588,777) (330,812) 290,091 (2,629,498)
Utility infrastructure(23,043,648) (1,175,522) 122,043 (24,097,127)
Lease property capital lease(468,580) - - (468,580)
Total accumulated depreciation(37,672,270) (2,461,197) 459,250 (39,674,217)
Total capital assets being depreciated, net45,941,846 2,247,966 (33,021) 48,156,791
Business-type activities capital assets, net49,664,376$ 9,015,595$ (3,608,023)$ 55,071,948$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
51
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government484,465$
Public safety606,850
Public works2,017,622
Parks1,515,492
Total depreciation expense - governmental activities4,624,429$
Business-type activities:
Utilities1,337,593$
Liquor73,087
Aquatic Center192,284
Golf Course441,148
Arena298,916
Art Center30,497
Edinborough Park/Centennial Lakes87,672
Total depreciation expense - business-type activities2,461,197$
CONSTRUCTION COMMITMENTS
At December 31, 2006, the City had construction project contracts in progress. The commitments related to
the remaining contract balances are summarized as follows:
ContractRemaining
Project #Project DescriptionAmountCommitment
N/AGymnasiums532,839$ 720$
N/ACourtney Field788,123 256,287
05-6 EngStreet/Sidewalk Reconstruction48,706 4,965
05-3 PWWatermain107,450 6,280
06-1 PWBackwash Recycling2,711,763 52,613
06-8 EngStorm Sewer189,476 16,807
337,672$
Note 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2006: tax increment bonds, general
obligation bonds, public improvement revolving 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 from general property taxes. The third
type is payable from special assessments. The fourth type is payable solely from annual appropriation lease
payments received from the City of Edina pursuant to a lease between the Edina Housing and
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
52
Redevelopment Authority and the City. The fifth 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, 2006, the governmental long-term bonded debt of the financial reporting entity
consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/06
Tax Increment Bonds:
Tax Increment Bonds, Series 2000A4.30-4.809/6/20002/1/20112,620,000$ 1,465,000$
Tax Increment Bonds, Series 2002B3.00%8/5/20022/1/20091,400,000 1,400,000
Tax Increment Refunding Bonds,
Series 2005B3.00%7/19/20052/1/200910,520,000 8,870,000
Tax Increment Taxable Refunding
Bonds, Series 2005C3.75-4.257/19/20052/1/20096,220,000 5,220,000
Tax Increment Refunding Bonds,
Series 2005D3.00-3.407/19/20052/1/20133,505,000 3,505,000
Total Tax Increment Bonds24,265,000 20,460,000
General Obligation Bonds:
General Obligation Equipment
Certificates, Series 2003A1.05-2.043/1/20032/1/20081,540,000 295,000
General Obligation - Park &
Recreation Refunding, 2005A3.50-4.007/19/20052/1/20175,375,000 5,375,000
Total General Obligation Bonds6,915,000 5,670,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement
Revolving, 2005E3.00-3.759/13/20052/1/20161,460,000 1,460,000
Total PIR Bonds1,460,000 1,460,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20024.00-5.251/1/20022/1/202112,410,000 10,655,000
Public Project Revenue, Series 20053.50-4.139/13/20055/1/20265,425,000 5,425,000
Total Public Project Revenue Bonds17,835,000 16,080,000
Total bonded indebtedness - governmental activities50,475,000$ 43,670,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
53
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/06
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70-4.455/3/19991/1/20133,270,000$ 2,260,000$
Recreational Facility Bonds, Series 2001A2.25-4.6511/1/20011/1/20174,620,000 2,335,000
Utility Revenue Bonds, Series 1999A3.20-4.205/3/19992/1/20093,600,000 1,215,000
Utility Revenue Bonds, Series 2003C1.10-3.553/1/20032/1/20133,200,000 2,335,000
Total Revenue Bonds14,690,000 8,145,000
Total bonded indebtedness - business-type activities14,690,000$ 8,145,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
20074,795,000$ 625,606$ 545,000$ 197,188$ 160,000$ 46,694$
20085,650,000 445,694 570,000 179,587 155,000 41,969
20095,890,000 244,236 435,000 162,825 150,000 37,206
2010805,000 125,820 455,000 147,250 150,000 32,331
2011840,000 94,359 470,000 131,062 150,000 27,363
2012-20162,480,000 57,795 2,620,000 379,294 695,000 62,046
2017-2021- - 575,000 11,500 - -
Total20,460,000$ 1,593,510$ 5,670,000$ 1,208,706$ 1,460,000$ 247,609$
Principal Interest Principal Interest
2007690,000$ 725,855$ 1,595,000$ 276,999$
2008715,000 696,118 1,560,000 221,821
2009745,000 665,192 1,600,000 163,542
2010780,000 632,880 715,000 120,095
2011810,000 598,880 750,000 92,524
2012-20164,645,000 2,383,255 1,835,000 123,442
2017-20215,890,000 1,121,597 90,000 2,092
2022-20261,805,000 192,535 - -
Total16,080,000$ 7,016,312$ 8,145,000$ 1,000,515$
Public ProjectRevenue
Business-type Activities
Bonds
Governmental Activities
Revenue Bonds
Increment Bonds Obligation Bonds Revolving Bonds
Governmental Activities
GeneralPublic ImprovementTax
Year Ending
December 31
Year Ending
December 31
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
54
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2006, was as follows:
BeginningEndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment28,905,000$ -$ (8,445,000)$ 20,460,000$ 4,795,000$
General obligation11,765,000 - (6,095,000) 5,670,000 545,000
PIR1,460,000 - - 1,460,000 160,000
Public project revenue16,560,000 - (480,000) 16,080,000 690,000
Less deferred amounts:
Discount on bonds(319,593) - 43,303 (276,290) -
Premiums77,003 - (15,505) 61,498 -
Total bonds payable58,447,410 - (14,992,202) 43,455,208 6,190,000
Compensated absences2,953,300 1,573,290 (1,331,557) 3,195,033 1,278,013
Governmental activity
Long-term liabilities 61,400,710$ 1,573,290$ (16,323,759)$ 46,650,241$ 7,468,013$
Business-type activities:
Bonds payable:
Revenue bonds9,690,000 - (1,545,000) 8,145,000 1,595,000
Less deferred amounts:
Discount on bonds(43,201) - 9,412 (33,789) -
Total bonds payable9,646,799 - (1,535,588) 8,111,211 1,595,000
Compensated absences837,179 336,759 (255,423) 918,515 367,406
Business-type activity
Long-term liabilities 10,483,978$ 336,759$ (1,791,011)$ 9,029,726$ 1,962,406$
For governmental activities, compensated absences are generally liquidated by the general fund.
The City issued $5,375,000 of General Obligation Park & Recreation Refunding Bonds, Series 2005A
to provide resources for a “crossover refunding” of the 2007 through 2017 maturities of the
$5,575,000 General Obligation Park & Recreation Bonds, Series 1996B. The proceeds of the 2005
issue were placed in an escrow account until the February 1, 2006 call date of the refunded issue. The
crossover refunding included $199,747 of City funds in addition to the refunding bond proceeds. The
crossover refunding was undertaken to reduce total debt service payments by $957,250 and resulted in
an economic gain of $565,887.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
55
The City issued $3,505,000 of General Obligation Tax Increment Refunding Bonds, Series 2005D to
provide resources for a “crossover refunding” of the 2007 through 2013 maturities of the $3,460,000
General Obligation Tax Increment Bonds, Series 1997B. The proceeds of the 2005 issue were placed
in an escrow account until the February 1, 2006 call date of the refunded issue. The crossover
refunding was undertaken to reduce total debt service payments by $263,373 and resulted in an
economic gain of $229,532.
Note 6 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable
principally from property taxes. The City of Edina's legal debt margin for 2006 is computed as follows:
December 31, 2006
Market Value (after fiscal disparities)9,598,697,600$
Debt Limit (2% of Market Value)191,973,952$
Amount of debt applicable to debt limit:
Total bonded debt51,815,000$
Less:
Tax increment bonds(20,460,000)
Public improvement revolving bonds(1,460,000)
Public project revenue bonds(16,080,000)
Revenue bonds(8,145,000)
Fund balance in related Debt Service Funds(1,979,046)
Total debt applicable to debt limit 3,690,954$
Legal debt margin 188,282,998$
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
56
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new members must
participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify
for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by State Statute, and vest after
three years of credited service. The defined retirement benefits are based on a member’s highest
average salary for any five successive years of allowable service, age, and years of credit at
termination of service.
Two methods are used to compute benefits for PERF’s Coordinated and Basic Plan members. The
retiring member receives the higher of a step-rate benefit accrual formula (Method 1) or a level
accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is
2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year.
The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the
first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7%
of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year
of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For all
PEPFF and PERF members hired 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 internet at
www.mnpera.org, by writing to PERA at 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, 2006
57
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 were required to contribute 9.10% and 5.50%, respectively, of their
covered salary in 2006. Contribution rates in the Coordinated Plan will increase in 2007 to 5.75%.
PEPFF members were required to contribute 7.00% of their covered salary in 2006. That rate will
increase to 7.8% in 2007. The City of Edina is required to contribute the following percentages of
annual covered payroll: 11.78% for Basic Plan PERF members, 6.0% for Coordinated Plan PERF
members, and 10.5% for PEPFF members. Employer contribution rates for the Coordinated Plan
and PEPFF will increase to 6.25% and 11.7% respectively, effective January 1, 2007. The City’s
contributions to the Public Employees Retirement Fund for the years ending December 31, 2006,
2005 and 2004 were $696,014, $619,212, and $614,321, respectively. The City’s contributions to
the Public Employees Police and Fire Fund for the years ending December 31, 2006, 2005 and
2004 were $632,892, $539,000, and $537,552, respectively. The City’s contributions were equal
to the contractually required contributions for each year as set by state statute.
Note 8 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of internal balances as of December 31, 2006, is as follows:
Payable FundAmount
GeneralConstruction1,750,000$
Debt ServiceConstruction175,000
General200,000
HRAGeneral79,299
LiquorUtilities1,025,000
Aquatic CenterUtilities400,000
Golf Course340,000
Edinborough/Centennial Lakes60,000
CommunicationCommunity Development Block Grant13,000
Total 4,042,299$
Receivable Fund
The City’s interfund receivables and payables eliminate what would have been negative cash balances.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
58
DebtNonmajor
General Service Construction Business-type Total
Transfer out:
General Fund-$ -$ 50,000$ -$ 50,000$
HRA Fund- 5,827,512 - - 5,827,512
Construction Fund- 87,516 - 62,000 149,516
Utilities Fund- - 100,000 - 100,000
Liquor Fund700,230 - 100,000 195,000 995,230
700,230$ 5,915,028$ 250,000$ 257,000$ 7,122,258$
Transfer In:
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from
services provided by another fund. Many of the City’s interfund transfers fall under that category. Non-
routine transfers include the following:
1. The liquor fund transferred $700,230, $110,000, and $85,000 to the general fund, art center, and
arena funds, respectively, to subsidize operations.
2. The construction fund transferred $37,000 and $25,000 to the art center and arena funds,
respectively to subsidize capital improvements to those facilities.
3. The general fund transferred $50,000 to the construction fund to fund the capital improvement
program.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
59
Note 9 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1200 (50th and France Commercial Area) is a redevelopment district established in 1974
pursuant to Minnesota Statutes with a termination date of 2009.
District number 1201 (Southeast Edina Redevelopment District – Edinborough) is a redevelopment district
established in 1977 pursuant to Minnesota Statutes with a termination date of 2009.
District number 1202 (Grandview Commercial Area) is a redevelopment district established in 1984
pursuant to Minnesota Statutes with a termination date of 2010.
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a redevelopment
district established in 1988 pursuant to Minnesota Statutes with a termination date of 2016.
District number 1207 (70th and Cahill Economic Development District) is an economic district established
in 1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment previously collected
is available for expenditures within the larger development district that includes the Wooddale – Valley
View commercial area. Tax capacity and debt for this district is not included in the following schedule as
county reports no longer indicate captured tax capacity for this district and no debt is outstanding.
The following table reflects values as of December 31, 2006:
TIF #1200TIF #1201TIF #1202TIF #1203Total
Original tax capacity112,826$ 94,319$ 164,885$ 229,691$ 601,721$
Current tax capacity1,129,577 2,944,638 1,274,613 3,232,962 8,581,790
Tax capacity change1,016,751 2,850,319 1,109,728 3,003,271 7,980,069
Captured tax capacity value:
Retained captured tax capacity 1,016,751$ 2,850,319$ 1,109,728$ 3,003,271$ 7,980,069$
Total bonds issued
(general obligation)5,360,000$ 22,445,000$ 9,637,555$ 35,894,724$ 73,337,279$
Amounts redeemed5,360,000 22,445,000 6,772,555 18,299,724 52,877,279
Outstanding bonds at
December 31, 2006-$ -$ 2,865,000$ 17,595,000$ 20,460,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
60
Note 10 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.
Worker’s compensation insurance is provided through the League of Minnesota Cities Insurance
Trust (LMCIT). The City has a $10,000 deductible per occurrence, with a $500,000 annual
maximum.
Automobile and general liability coverage is 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. The City is not subject to a deductible for automobile or general liability
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 $2,500 - $25,000
deductibles per occurrence depending on claim type, with an annual maximum of $83,446,936.
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.
Settlement claims have not exceeded insurance coverage for each of the past three years. There
were not significant reductions in insurance coverage during 2006.
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, 2006.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
61
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 11 CONDUIT DEBT OBLIGATION
As of December 31, 2006, the City of Edina had 3 series of Housing and Health Care Revenue Bonds, with
an aggregate principal amount payable of $29,850,000. The bonds are payable solely from revenues of the
respective organizations and do not constitute an indebtedness of the City, and are not a charge against its
general credit or taxing power. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
Note 12 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 13 RELATED PARTY TRANSACTIONS
The City pays an annual membership fee to the South Metro Public Safety Training Facility as part of the
joint venture agreement. The membership fee is paid by the Police and Fire departments and is based on a
Cost Sharing Formula. For the year ended December 31, 2006, the City paid a total of $34,505 in
membership fees to the PSTF.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
62
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND BALANCE
At December 31, 2006 the City had designated and reserved portions of its various fund balances through
legal restriction and City Council authorization. A summary of such designations is as follows:
December 31, 2006
General Fund:
Reserved for prepaid items36,849$
Designated for park dedication192,918
Designated for investments51,481
Designated for equipment replacement2,512,308
Designated for compensated absences1,278,013
Designated for cash flow8,567,724
Debt Service Fund:
Reserved for debt service2,194,313
Construction Fund:
Reserved for encumbrances261,972
Reserved for special projects225,953
Designated for capital improvements3,160,085
18,481,616$
Note 15 SUBSEQUENT EVENTS
On May 24, 2007, the City issued $5,865,000 of General Obligation Capital Improvement Plan Bonds,
Series 2007A to finance the demolition of Fire Station #1 and construction of a new Fire Station at the
same site. The interest rate on the bonds ranges from 4.0 – 4.25 percent and the final maturity date is
February 1, 2028.
On May 24, 2007, the City issued $8,210,000 of General Obligation Utility Revenue Bonds, Series 2007B
to finance various utility improvement projects. The interest rate on the bonds is 4.0 percent and the final
maturity date is February 1, 2017.
On May 24, 2007, the City issued $5,870,000 of General Obligation Permanent Improvement Revolving
Fund Bonds, Series 2007C to finance various special assessment projects. The interest rate on the bonds
ranges from 3.6 – 4.25 percent and the final maturity date is February 1, 2019.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2006
Variance with
2006Final Budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
General property taxes:
Current18,087,487$ 18,087,487$ 18,153,570$ 66,083$
Penalties and interest15,000 15,000 12,450 (2,550)
Total general property taxes18,102,487 18,102,487 18,166,020 63,533
Licenses and permits:2,256,550 2,256,550 3,458,140 1,201,590
Intergovernmental:
Federal:35,000 35,000 197,308 162,308
State:
Municipal state aid195,000 195,000 195,000 -
Other170,608 170,608 181,322 10,714
State aid - police 320,000 320,000 354,676 34,676
Health programs- - 121,217 121,217
Total intergovernmental720,608 720,608 1,049,523 328,915
Charges for services:
Building Department1,800 1,800 6,730 4,930
City Clerk- - 10,473 10,473
Fire Department33,000 33,000 29,710 (3,290)
Ambulance fees1,237,300 1,237,300 1,452,299 214,999
Police Department235,360 235,360 199,046 (36,314)
Engineering117,000 117,000 227,757 110,757
Health Department6,200 6,200 7,978 1,778
Planning Department24,000 24,000 38,443 14,443
Housing Foundation Contract31,700 31,700 23,655 (8,045)
HRA Services20,000 20,000 22,604 2,604
Park Registration78,800 78,800 93,218 14,418
Senior Center104,300 104,300 104,419 119
Other fees5,500 5,500 78,900 73,400
50th & France Assessment69,000 69,000 69,000 -
Charges to other funds271,413 271,413 277,488 6,075
Total charges for services2,235,373 2,235,373 2,641,720 406,347
Fines and forfeits875,000 875,000 1,023,935 148,935
Miscellaneous:
Rental of property285,000 285,000 308,535 23,535
Investment income150,000 150,000 298,299 148,299
Donations5,000 5,000 15,539 10,539
Other5,000 5,000 96,879 91,879
Total miscellaneous445,000 445,000 719,252 274,252
Total revenues24,635,018 24,635,018 27,058,590 2,423,572
Budgeted Amounts
63
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2006
Variance with
2006Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Expenditures:
General government:
Mayor and Council:
Current:
Personal services32,258$ 32,258$ 30,224$ 2,034$
Contractual services4,800 4,800 6,905 (2,105)
Commodities1,100 1,100 558 542
Central services28,548 28,548 31,063 (2,515)
Total mayor and council66,706 66,706 68,750 (2,044)
Administration:
Current:
Personal services799,481 799,481 722,525 76,956
Contractual services144,000 144,000 120,989 23,011
Commodities3,100 3,100 2,114 986
Central services58,956 58,956 63,043 (4,087)
Total current1,005,537 1,005,537 908,671 96,866
Capital outlay5,996 5,996 2,464 3,532
Total administration1,011,533 1,011,533 911,135 100,398
Planning:
Current:
Personal services322,919 322,919 353,400 (30,481)
Contractual services35,500 35,500 123,423 (87,923)
Commodities1,650 1,650 1,456 194
Central services41,844 41,844 44,828 (2,984)
Total current401,913 401,913 523,107 (121,194)
Capital outlay1,800 1,800 37 1,763
Total planning403,713 403,713 523,144 (119,431)
Finance:
Current:
Personal services453,064 453,064 448,212 4,852
Contractual services97,600 97,600 91,893 5,707
Commodities2,100 2,100 1,234 866
Central services51,672 51,672 55,093 (3,421)
Total current604,436 604,436 596,432 8,004
Capital outlay5,990 5,990 - 5,990
Total finance610,426 610,426 596,432 13,994
Election:
Current:
Personal services127,344 127,344 178,242 (50,898)
Contractual services19,745 19,745 6,769 12,976
Commodities5,440 5,440 8,181 (2,741)
Central services22,368 22,368 23,360 (992)
Total election174,897 174,897 216,552 (41,655)
Budgeted Amounts
64
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2006
Variance with
2006Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Assessing:
Current:
Personal services594,826$ 594,826$ 582,281$ 12,545$
Contractual services102,610 102,610 79,403 23,207
Commodities2,500 2,500 1,301 1,199
Central services61,020 61,020 65,050 (4,030)
Total current760,956 760,956 728,035 32,921
Capital outlay12,695 12,695 - 12,695
Total assessing773,651 773,651 728,035 45,616
Legal and court services:
Current:
Contractual services430,000 430,000 355,906 74,094
Contingencies:
Current:
Contractual services119,616 119,616 271,267 (151,651)
Commodities- - 268 (268)
Total contingencies119,616 119,616 271,535 (151,919)
City's share of special assessment:
Current:
Contractual services30,000 30,000 23,056 6,944
Human Rights Commission:
Current:
Contractual services85,635 85,635 84,378 1,257
Suburban Rate Authority:
Current:
Contractual services4,000 4,000 4,000 -
Edina Resource Center
Current:
Contractual services34,040 34,040 34,040 -
Human Services Planning & Coordination
Current:
Contractual services23,190 23,190 28,287 (5,097)
Records management:
Current:
Contractual services27,000 27,000 - 27,000
Employee programs
Current:
Personal services118,200 118,200 68,884 49,316
Contractual services10,800 10,800 11,204 (404)
Total employee programs129,000 129,000 80,088 48,912
Dial-a-Ride:
Current:
Contractual services23,000 23,000 15,434 7,566
Public Artscape:
Current:
Contractual services- - 16,765 (16,765)
Total general government3,946,407 3,946,407 3,957,537 (11,130)
65
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2006
Variance with
2006Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Public safety:
Police protection:
Current:
Personal services5,474,994$ 5,474,994$ 5,646,093$ (171,099)$
Contractual services333,081 333,081 325,614 7,467
Commodities70,632 70,632 94,429 (23,797)
Central services796,608 796,608 848,792 (52,184)
Total current6,675,315 6,675,315 6,914,928 (239,613)
Capital outlay250,290 250,290 658,888 (408,598)
Total police protection6,925,605 6,925,605 7,573,816 (648,211)
Fire protection:
Current:
Personal services3,217,342 3,217,342 3,212,805 4,537
Contractual services275,019 275,019 338,817 (63,798)
Commodities137,000 137,000 147,973 (10,973)
Central services265,272 265,272 277,928 (12,656)
Total current3,894,633 3,894,633 3,977,523 (82,890)
Capital outlay189,695 189,695 239,952 (50,257)
Total fire protection4,084,328 4,084,328 4,217,475 (133,147)
Civil defense:
Current:
Personal services34,121 34,121 36,691 (2,570)
Contractual services9,220 9,220 7,407 1,813
Commodities1,375 1,375 15 1,360
Total current44,716 44,716 44,113 603
Capital outlay5,356 5,356 - 5,356
Total civil defense50,072 50,072 44,113 5,959
Animal Control:
Current:
Personal services54,517 54,517 58,428 (3,911)
Contractual services8,088 8,088 7,572 516
Commodities3,934 3,934 665 3,269
Central services9,252 9,252 9,692 (440)
Total current75,791 75,791 76,357 (566)
Capital outlay7,102 7,102 - 7,102
Total animal control82,893 82,893 76,357 6,536
Public health:
Current:
Personal services253,416 253,416 227,741 25,675
Contractual services178,985 178,985 174,807 4,178
Commodities1,325 1,325 508 817
Central services31,812 31,812 33,959 (2,147)
Total current465,538 465,538 437,015 28,523
Capital outlay 5,355 5,355 - 5,355
Total public health470,893 470,893 437,015 33,878
66
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2006
Variance with
2006Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Inspections:
Current:
Personal services619,507$ 619,507$ 659,171$ (39,664)$
Contractual services86,145 86,145 77,756 8,389
Commodities6,100 6,100 7,530 (1,430)
Central services74,496 74,496 79,547 (5,051)
Total current786,248 786,248 824,004 (37,756)
Capital outlay17,915 17,915 622 17,293
Total inspections804,163 804,163 824,626 (20,463)
Total public safety12,417,954 12,417,954 13,173,402 (755,448)
Public works:
Administration:
Current:
Personal services161,737 161,737 154,960 6,777
Contractual services5,700 5,700 4,760 940
Commodities1,000 1,000 - 1,000
Central services24,492 24,492 26,086 (1,594)
Total administration192,929 192,929 185,806 7,123
Engineering:
Current:
Personal services576,959 576,959 555,356 21,603
Contractual services94,842 94,842 123,288 (28,446)
Commodities18,000 18,000 13,542 4,458
Central services81,624 81,624 86,921 (5,297)
Total current771,425 771,425 779,107 (7,682)
Capital outlay48,152 48,152 70,992 (22,840)
Total engineering819,577 819,577 850,099 (30,522)
Supervision and overhead:
Current:
Personal services218,658 218,658 168,077 50,581
Contractual services27,000 27,000 28,246 (1,246)
Commodities500 500 - 500
Central services167,436 167,436 174,127 (6,691)
Total supervision and overhead413,594 413,594 370,450 43,144
Street maintenance:
Current:
Personal services1,723,594 1,723,594 1,672,522 51,072
Contractual services667,380 667,380 641,844 25,536
Commodities730,490 730,490 810,183 (79,693)
Central services535,908 535,908 561,399 (25,491)
Total current3,657,372 3,657,372 3,685,948 (28,576)
Capital outlay489,635 489,635 245,623 244,012
Total street maintenance4,147,007 4,147,007 3,931,571 215,436
Total public works5,573,107 5,573,107 5,337,926 235,181
67
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2006
Variance with
2006Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Parks:
Administration:
Current:
Personal services570,499$ 570,499$ 561,471$ 9,028$
Contractual services50,102 50,102 74,738 (24,636)
Commodities3,301 3,301 4,190 (889)
Central services61,008 61,008 65,035 (4,027)
Total current684,910 684,910 705,434 (20,524)
Capital outlay6,682 6,682 2,278 4,404
Total administration691,592 691,592 707,712 (16,120)
Recreation:
Current:
Personal services185,811 185,811 129,501 56,310
Contractual services152,482 152,482 157,445 (4,963)
Commodities43,982 43,982 43,913 69
Total recreation382,275 382,275 330,859 51,416
Maintenance:
Current:
Personal services1,404,514 1,404,514 1,416,037 (11,523)
Contractual services327,275 327,275 258,424 68,851
Commodities182,680 182,680 167,945 14,735
Central services280,452 280,452 293,311 (12,859)
Total current2,194,921 2,194,921 2,135,717 59,204
Capital outlay114,542 114,542 91,792 22,750
Total maintenance2,309,463 2,309,463 2,227,509 81,954
Deer control:
Current:
Contractual services9,450 9,450 13,078 (3,628)
Total deer control9,450 9,450 13,078 (3,628)
Total parks3,392,780 3,392,780 3,279,158 113,622
Total expenditures25,330,248 25,330,248 25,748,023 (417,775)
Revenues over (under) expenditures(695,230) (695,230) 1,310,567 2,005,797
Other financing sources (uses):
Transfer from other funds700,230 700,230 700,230 -
Transfer to other funds(50,000) (50,000) (50,000) -
Sale of capital assets45,000 45,000 54,457 9,457
Total financing sources (uses)695,230 695,230 704,687 9,457
Net increase (decrease) in fund balance-$ -$ 2,015,254 2,015,254$
Fund balance - January 1 11,818,784
Fund balance - December 31 13,834,038$
68
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2006
69
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 Manager 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, 2006
70
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 council66,706$ 68,750$ 2,044$
Planning403,713 523,144 119,431
Elections174,897 216,552 41,655
Contingencies119,616 271,535 151,919
Human services planning23,190 28,287 5,097
Public artscape- 16,765 16,765
Public Safety:
Police protection6,925,605 7,573,816 648,211
Fire protection4,084,328 4,217,475 133,147
Inspections804,163 824,626 20,463
Public Works:
Engineering819,577 850,099 30,522
Parks:
Administration691,592 707,712 16,120
Deer control9,450 13,078 3,628
Excess expenditures in the mayor and council, planning, elections, contingencies, human services planning and
coordination, public artscapes, engineering, parks administration and deer control departments are funded by
available general fund balance. Excess expenditures in the police protection department are by available general
fund balance designated for our equipment replacement program. Excess expenditures in the fire protection and
inspections department are funded by greater than anticipated charges for services and license and permit
revenue.
Excess expenditures in the CDBG fund are due to timing differences between the grant period and the City’s
fiscal year. All CDBG expenditures are reimbursed by the County.
A Special Revenue Fund is used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
The following are nonmajor special revenue funds:
Community Development Block Grant Fund - This fund was established to
account for funds received under Title I of the Housing and Community
Development Act of 1974.
Communications Fund - This fund was established to account for funds received
from the franchise fee of the local cable television service.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
71
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET Statement 11
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2006
CommunityTotal Nonmajor
DevelopmentSpecial Revenue
Block GrantCommunicationFunds
Assets
Cash and cash equivalents904$ 1,331$ 2,235$
Investments- 621,089 621,089
Accounts receivable- 140,235 140,235
Accrued interest receivable- 4,448 4,448
Due from other funds- 13,000 13,000
Due from other governments12,096 100 12,196
Total assets13,000$ 780,203$ 793,203$
Liabilities and Fund Balance
Liabilities:
Accounts payable-$ 91,433$ 91,433$
Salaries payable- 3,898 3,898
Due to other funds13,000 - 13,000
Unearned revenue- 2,520 2,520
Total liabilities13,000 97,851 110,851
Fund balance:
Unreserved:
Undesignated- 682,352 682,352
Total fund balance- 682,352 682,352
Total liabilities and fund balance13,000$ 780,203$ 793,203$
72
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, 2006
CommunityTotal Nonmajor
DevelopmentSpecial Revenue
Block GrantCommunicationFunds
Revenues:
Franchise fees-$ 499,206$ 499,206$
Intergovernmental187,674 - 187,674
Investment income- 25,153 25,153
Other- 43,866 43,866
Total revenues187,674 568,225 755,899
Expenditures:
Current:
General government187,674 616,900 804,574
Total expenditures187,674 616,900 804,574
Net increase (decrease) in fund balance- (48,675) (48,675)
Fund balance - January 1- 731,027 731,027
Fund balance - December 31-$ 682,352$ 682,352$
73
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT Statement 13
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2006
Actual
OriginalFinalAmounts
Revenues:
Intergovernmental167,594$ 167,594$ 187,674$
Total revenues167,594 167,594 187,674
Expenditures:
Current:
General government167,594 167,594 187,674
Net increase (decrease) in fund balance-$ -$ -$
Fund balance - January 1 -
Fund balance - December 31 -$
Budgeted Amounts
74
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 Fund - This fund accounts for activities related to the Braemar Ice Arena.
Art Center Fund - This fund accounts for activities related to the City's Art Center.
Edinborough/Centennial Lakes Fund - This fund accounts for activities at two
of the City's parks; Edinborough Park and Centennial Lakes Park.
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
75
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET ASSETS Statement 14
NONMAJOR PROPRIETARY FUNDS
December 31, 2006
Total
ArtEdinborough ParkNonmajor
ArenaCenterCentennial LakesProprietary Funds
Assets
Current assets:
Cash and cash equivalents30,466$ 12,533$ 5,435$ 48,434$
Investments- - 4,371,402 4,371,402
Interest receivable- - 31,307 31,307
Accounts receivable211,044 1,268 1,855 214,167
Inventory- 15,865 - 15,865
Total current assets241,510 29,666 4,409,999 4,681,175
Noncurrent assets:
Deferred charges2,781 - - 2,781
Net capital assets2,975,558 322,138 804,495 4,102,191
Total noncurrent assets2,978,339 322,138 804,495 4,104,972
Total assets3,219,849 351,804 5,214,494 8,786,147
Liabilities:
Current liabilities:
Accounts payable37,630 26,380 120,661 184,671
Salaries payable12,666 3,776 15,507 31,949
Accrued interest payable9,323 - - 9,323
Due to other funds- - 60,000 60,000
Due to other governments293 1,103 3,965 5,361
Unearned revenue- 4,529 49,579 54,108
Compensated absences payable46,970 16,345 47,459 110,774
Bonds payable200,000 - - 200,000
Total current liabilities306,882 52,133 297,171 656,186
Noncurrent liabilities:
Compensated absences70,455 24,518 71,188 166,161
Bonds payable, net443,290 - - 443,290
Total noncurrent liabilities513,745 24,518 71,188 609,451
Total liabilities820,627 76,651 368,359 1,265,637
Net assets:
Invested in capital assets,
net of related debt2,335,049 322,138 804,495 3,461,682
Unrestricted64,173 (46,985) 4,041,640 4,058,828
Total net assets2,399,222$ 275,153$ 4,846,135$ 7,520,510$
76
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, 2006
Total
Edinborough ParkNonmajor
ArenaArt CenterCentennial LakesProprietary Funds
Operating revenues:
Sales - retail9,902$ 67,146$ -$ 77,048$
Sales - concessions- 4,566 24,199 28,765
Memberships5,601 27,965 46,554 80,120
Admissions92,728 - 428,958 521,686
Building rental1,143,211 - 222,599 1,365,810
Rental of equipment4,218 - 52,007 56,225
Greens fees- - 165,649 165,649
Class registration & other fees162,895 387,786 491,169 1,041,850
Total operating revenues1,418,555 487,463 1,431,135 3,337,153
Operating expenses:
Cost of sales and services1,128 26,843 13,584 41,555
Personal services580,849 250,249 983,627 1,814,725
Contractual services563,845 236,046 467,512 1,267,403
Commodities49,754 49,295 210,546 309,595
Central Services47,606 41,057 88,511 177,174
Depreciation298,916 30,497 87,672 417,085
Total operating expenses1,542,098 633,987 1,851,452 4,027,537
Operating loss(123,543) (146,524) (420,317) (690,384)
Nonoperating revenues (expenses):
Investment income- - 180,647 180,647
Donations- 13,010 - 13,010
Interest and fiscal charges(18,866) - - (18,866)
Gain (loss) on sale of capital asset- - 9,151 9,151
Amortization of bond discount(2,246) - - (2,246)
Total nonoperating
revenues (expenses)(21,112) 13,010 189,798 181,696
Income (loss) before transfers(144,655) (133,514) (230,519) (508,688)
Transfers:
Transfers in110,000 147,000 - 257,000
Total transfers 110,000 147,000 - 257,000
Change in net assets(34,655) 13,486 (230,519) (251,688)
Net assets - January 1 2,433,877 261,667 5,076,654 7,772,198
Net assets - December 312,399,222$ 275,153$ 4,846,135$ 7,520,510$
77
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS Statement 16
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2006
Total
ArtEdinborough ParkNonmajor
ArenaCenterCentennial LakesProprietary Funds
Cash flows from operating activities:
Receipts from customers and users1,338,029$ 487,657$ 1,432,820$ 3,258,506$
Payment to suppliers(684,737) (353,136) (701,833) (1,739,706)
Payment to employees(566,022) (249,802) (970,359) (1,786,183)
Donations- 13,010 - 13,010
Net cash provided by (used in) operating activities87,270 (102,271) (239,372) (254,373)
Cash flows from noncapital financing activities:
Transfer (to) from Enterprise Funds85,000 110,000 - 195,000
Transfer (to) from Capital Project Funds25,000 37,000 - 62,000
Net interfund borrowing25,000 - 35,000 60,000
Net cash provided by noncapital financing activities135,000 147,000 35,000 317,000
Cash flows from capital and related financing activities:
Acquisition of capital assets(32,153) (41,772) (141,675) (215,600)
Sale of capital assets- - 9,450 9,450
Principal paid on bonds(200,000) - - (200,000)
Interest paid on bonds(21,935) - - (21,935)
Net cash used in capital and related financing activities(254,088) (41,772) (132,225) (428,085)
Cash flows from investing activities:
Proceeds from sales of investments- - 153,902 153,902
Investment income- - 186,098 186,098
Net cash flows provided by (used in) investing activities- - 340,000 340,000
Net increase (decrease) in cash
and cash equivalents(31,818) 2,957 3,403 (25,458)
Cash and cash equivalents - January 162,284 9,576 2,032 73,892
Cash and cash equivalents - December 3130,466$ 12,533$ 5,435$ 48,434$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (123,543)$ (146,524)$ (420,317)$ (690,384)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation298,916 30,497 87,672 417,085
Donations- 13,010 - 13,010
Changes in assets and liabilities:
Decrease (increase) in receivables(80,526) (1,268) 1,560 (80,234)
Decrease (increase) in inventory- (37) - (37)
Increase (decrease) in accounts payable(22,034) 397 78,037 56,400
Increase (decrease) in salaries payable4,772 398 3,534 8,704
Increase (decrease) in due to other governments(370) (255) 283 (342)
Increase (decrease) in unearned revenue- 1,462 125 1,587
Increase (decrease) in compensated absences10,055 49 9,734 19,838
Total adjustments210,813 44,253 180,945 436,011
Net cash provided by (used in)
operating activities87,270$ (102,271)$ (239,372)$ (254,373)$
78
Agency funds are used to report resources held by the City in a purely custodial capacity.
The following are agency funds:
Police Seizure Fund - This fund accounts for assets seized by the Police Department.
Public Safety Training Facility - This fund accounts for assets and liabilities of the
South Metro Public Safety Training Facility, which is a joint venture that the City has
fiduciary responsibilities for.
Payroll Fund - This fund accounts for assets withheld from employee paychecks that
the City plans to remit to various third parties, including state & local governments,
insurance providers, and others.
FIDUCIARY FUNDS
Agency Funds
79
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80
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN Statement 17
ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2006
BalanceBalance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash 300,673$ 60,580$ -$ 361,253$
Liabilities:
Due to other governmental units 300,673$ 60,580$ -$ 361,253$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash9,083$ -$ 7,062$ 2,021$
Investments 135,000 135,000 - 270,000
Total Assets 144,083$ 135,000$ 7,062$ 272,021$
Liabilities:
Accounts payable10,966$ -$ 6,381$ 4,585$
Salaries payable951 656 - 1,607
Due to other governmental units 132,166 133,663 - 265,829
Total Liabilities 144,083$ 134,319$ 6,381$ 272,021$
PAYROLL
Assets:
Cash 229,971$ -$ 50,406$ 179,565$
Liabilities:
Accounts payable70,677$ -$ 27,047$ 43,630$
Due to other governmental units 159,294 - 23,359 135,935
Total Liabilities 229,971$ -$ 50,406$ 179,565$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash539,727$ 60,580$ 57,468$ 542,839$
Investments 135,000 135,000 - 270,000
Total Assets 674,727$ 195,580$ 57,468$ 812,839$
Liabilities:
Accounts payable81,643$ -$ 33,428$ 48,215$
Salaries payable951 656 - 1,607
Due to other governmental units 592,133 194,243 23,359 763,017
Total Liabilities 674,727$ 194,899$ 56,787$ 812,839$
81
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83
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2006
Final
InterestMaturityOriginal
RatesDateDateIssueRedeemed
Tax Increment Bonds:
Tax Increment Bonds, Series 1997B4.50 - 5.2004/01/9702/01/135,090,000$ 1,225,000$
Tax Increment Bonds, Series 2000A4.30 - 4.8009/06/0002/01/112,620,000 900,000
Tax Increment Bonds, Series 2002B3.00%08/05/0202/01/091,400,000 -
Tax Increment Taxable Refunding Bonds, Series 2003B1.128 - 1.74903/01/0302/01/066,570,000 4,895,000
Tax Increment Refunding Bonds, Series 2005B3.00%07/19/0502/01/0910,520,000 -
Tax Increment Taxable Refunding Bonds, Series 2005C3.75 - 4.2507/19/0502/01/096,220,000 -
Tax Increment Refunding Bonds, Series 2005D3.00 - 3.4007/19/0502/01/133,505,000 -
Total Tax Increment Bonds35,925,000 7,020,000
General Obligation Bonds:
GO Park & Recreation, Series 1996B4.25 - 5.7508/01/9602/01/178,090,000 2,140,000
GO Equipment Certificates, Series 2003A1.05 - 2.4003/01/0302/01/081,540,000 1,100,000
GO Park & Recreation Refunding Bonds, Series 2005A3.50 - 4.0007/19/0502/01/175,375,000 -
Total General Obligation Bonds15,005,000 3,240,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving, Series 2005E3.00 - 3.7509/13/0502/01/161,460,000 -
Total PIR Bonds1,460,000 -
Public Project Revenue Bonds:
Public Project Revenue, Series 20024.00 - 5.2501/01/0202/01/2112,410,000 1,275,000
Public Project Revenue, Series 20053.00 - 4.1309/13/0505/01/265,425,000 -
Total Public Project Revenue Bonds17,835,000 1,275,000
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70 - 4.4505/03/9901/01/133,270,000 740,000
Recreational Facility Bonds, Series 2001A2.25 - 4.6511/01/0101/01/174,620,000 1,675,000
Utility Revenue Bonds, Series 1999A3.20 - 4.2005/03/9902/01/093,600,000 2,010,000
Utility Revenue Bonds, Series 2003C1.10 - 3.5503/01/0302/01/133,200,000 575,000
Total Public Project Revenue Bonds14,690,000 5,000,000
Total - Bonded indebtedness84,915,000$ 16,535,000$
Prior Years
84
Exhibit 1
PrincipalInterestInterest
OutstandingPayableDueDuePayable
12/31/2005IssuedPayments12/31/2006In 2007In 2007to Maturity
3,865,000$ -$ 3,865,000$ -$ -$ -$ -$
1,720,000 - 255,000 1,465,000 265,000 62,329 179,434
1,400,000 - - 1,400,000 - 42,000 231,000
1,675,000 - 1,675,000 - - - -
10,520,000 - 1,650,000 8,870,000 2,550,000 227,850 419,700
6,220,000 - 1,000,000 5,220,000 1,520,000 187,650 346,387
3,505,000 - - 3,505,000 460,000 105,777 416,989
28,905,000 - 8,445,000 20,460,000 4,795,000 625,606 1,593,510
5,950,000 - 5,950,000 - - - -
440,000 - 145,000 295,000 145,000 5,050 6,850
5,375,000 - - 5,375,000 400,000 192,138 1,201,856
11,765,000 - 6,095,000 5,670,000 545,000 197,188 1,208,706
1,460,000 - - 1,460,000 160,000 46,694 247,609
1,460,000 - - 1,460,000 160,000 46,694 247,609
11,135,000 - 480,000 10,655,000 505,000 515,174 4,534,558
5,425,000 - - 5,425,000 185,000 210,681 2,481,754
16,560,000 - 480,000 16,080,000 690,000 725,855 7,016,312
2,530,000 - 270,000 2,260,000 290,000 91,580 361,218
2,945,000 - 610,000 2,335,000 615,000 76,579 285,075
1,590,000 - 375,000 1,215,000 390,000 42,045 76,807
2,625,000 - 290,000 2,335,000 300,000 66,795 277,415
9,690,000 - 1,545,000 8,145,000 1,595,000 276,999 1,000,515
68,380,000$ -$ 16,565,000$ 51,815,000$ 7,785,000$ 1,872,342$ 11,066,652$
2006
85
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES Exhibit 2
(shown by year of tax collectibility)
20032004200520062007
Total tax capacity77,665,879$ 83,447,880$ 91,309,672$ 101,947,912$ 113,428,895$
Increment valuation(6,909,331) (6,949,064) (7,330,826) (7,980,069) (8,771,951)
Contribution to fiscal disparities pool(7,587,409) (7,945,664) (7,635,854) (7,107,862) (8,486,997)
Tax capacity used for rate calculation63,169,139 68,553,152 76,342,992 86,859,981 96,169,947
Fiscal disparities distribution1,975,365 2,202,656 2,374,371 2,411,937 2,595,376
Adjusted net tax capacity65,144,504$ 70,755,808$78,717,363$89,271,918$ 98,765,323$
Tax levies:
General fund16,171,875$ 16,489,129$ 17,772,350$ 18,560,151$ 19,427,890$
Public project revenue1,026,437 1,028,837 1,058,840 1,501,741 1,497,500
Certificates of indebtedness586,163 604,275 162,200 159,100 -
Total certified tax levies17,784,475 18,122,241 18,993,390 20,220,992 20,925,390
Referendum market value levy721,967 686,662 674,161 599,138 605,138
Total levy18,506,442$ 18,808,903$19,667,551$20,820,130$ 21,530,528$
Tax capacity rate:
General fund revenue24.58623.18322.53620.75519.598
Bonds & interest2.5532.3821.5491.8581.557
Total tax capacity rate27.13925.56524.08522.61321.155
Market value rate0.0110.0100.008800.007030.00600
86
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 3
FOR 50TH & FRANCE-NO. 1200, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2006
(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 22,591,144 917,923 8,239,422
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 2,730,770 14,573 (745,343)
Other- 73,881 73,881 - -
Total sources of funds:3,000,000 41,467,707 32,420,539 932,496 8,114,672
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 5,360,000 - (80,000)
Interest- 4,738,329 4,140,864 - 597,465
Administrative costs- 1,230,000 1,205,451 - 24,549
Paid to other governments- 21,000 15,642 1,650 3,708
Work orders- 16,257 16,257 - -
Contingencies- 11,644 11,644 - -
Interest- 463,037 463,037 - -
Miscellaneous- 62,095 63,010 - (915)
Transfer- 15,000,000 12,350,000 975,000 1,675,000
Total uses of funds:3,000,000 35,562,457 32,360,998 976,650 2,224,809
Funds remaining (deficit)-$ 5,905,250$ 59,541$ (44,154)$ 5,889,863$
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$
87
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 4
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1201, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2006
(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 52,245,257 2,585,493 20,169,250
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 2,660,148 808 839,044
Other- 50,000 1,357 - 48,643
Total sources of funds:6,763,182 104,530,317 77,957,950 2,586,301 23,986,066
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 20,770,000 1,675,000 (975,000)
Interest- 20,100,000 19,751,326 20,938 327,736
Administrative costs194,700 1,800,000 1,673,988 - 126,012
Paid to other governments- 110,000 75,544 8,375 26,081
Transfers out- 17,000,000 12,496,699 1,635,000 2,868,301
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 77,176,633 3,339,313 12,781,906
Funds remaining (deficit)(3,000,000)$ 11,232,465$ 781,317$ (753,012)$ 11,204,160$
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$
88
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 5
FOR GRANDVIEW AREA REDEVELOPMENT DISTRICT-NO. 1202, A TAX INCREMENT FINANCING DISTRICT
December 31, 2006
(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 11,806,583 1,003,575 16,926,949
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds- 300,000 901,494 33,335 (634,829)
Other- - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 27,647,404 1,036,910 15,952,793
Uses of funds:
Land acquisition- 6,500,000 3,749,499 86,620 2,663,881
Installation of public utilities
and improvements4,310,000 17,127,000 9,738,935 - 7,388,065
Bond payments:
Principal- 9,900,000 6,517,555 255,000 3,127,445
Interest- 9,190,000 2,818,377 116,094 6,255,529
Loan/note interest- - 2,367,006 533,514 (2,900,520)
Paid to other governments- - 193,548 1,731 (195,279)
Administrative costs190,000 1,920,107 1,318,699 13,131 588,277
Total uses of funds:4,500,000 44,637,107 26,703,619 1,006,090 16,927,398
Funds remaining (deficit)-$ -$ 943,785$ 30,820$ (974,605)$
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 Circle598,411 2,070,119
Project area23,832 4,005,694
3,749,499$ 6,075,813$
89
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 6
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1203, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2006
(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 29,163,006 2,721,011 58,115,983
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 2,789,766 322,379 (612,145)
Transfer in- 32,000,000 25,957,924 2,610,000 3,432,076
Sale of material- 255,710 255,710 - -
Developer payments- 297,826 297,826 - -
Other- 20,000 21,799 - (1,799)
Total sources of funds:126,400,000 179,431,702 103,884,778 5,653,390 69,893,534
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 41,197 9,235,280
Bond payments:
Principal41,400,000 41,400,000 15,244,724 3,055,000 23,100,276
Interest38,000,000 38,000,000 32,408,600 705,479 4,885,921
Administrative costs1,140,800 1,600,000 1,288,542 15,654 295,804
Paid to other governments- 42,000 26,864 3,147 11,989
Loan/note interest- 14,684,711 3,512,845 458,245 10,713,621
Parkland dedication fees- 2,030,345 2,030,345 - -
Total uses of funds:121,117,800 146,609,711 94,088,098 4,278,722 48,242,891
Funds remaining (deficit)5,282,200$ 32,821,991$ 9,796,680$ 1,374,668$ 21,650,643$
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$
90
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS Exhibit 7
FOR 70TH STREET AND CAHILL ROAD DISTRICT-NO. 1207, A TAX INCREMENT FINANCING DISTRICT
December 31, 2006
(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- - 198,332 12,333 (210,665)
Total sources of funds:4,088,855 4,088,855 945,195 12,333 3,131,327
Uses of funds:
Land acquisition529,400 529,400 33,237 2,436 493,727
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 4,088,855 651,076 2,436 3,435,343
Funds remaining (deficit)-$ -$ 294,119$ 9,897$ (304,016)$
91
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92
Contents
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
STATISTICAL SECTION
ThispartoftheCity'scomprehensiveannualfinancialreportpresentsdetailed
informationasacontextforunderstandingwhattheinformationinthefinancial
statements,notedisclosures,andrequiredsupplementaryinformationsaysaboutthe
City's overall financial health.
Page
93
Sources:Unlessotherwisenoted,theinformationintheseschedulesisderivedfromthe
comprehensiveannualfinancialreportsfortherelevantyear.TheCityimplementedGASBStatement
34in2003;schedulespresentinggovernment-wideinformationincludeinformationbeginninginthat
year.
Theseschedulescontaintrendinformationtohelpthereader
understandhowtheCity'sfinancialperformanceandwell-
being have changed over time.
Theseschedulescontaininformationtohelpthereaderassess
theCity'smostsignificantlocalrevenuesource,theproperty
tax.
Theseschedulescontaininformationtohelpthereaderassess
the affordability of the City's current levels of outstanding debt
and the City's ability to issue additional debt in the future.
Theseschedulesofferdemographicandeconomicindicators
tohelpthereaderunderstandtheenvironmentwithinwhich
the City's financial activities take place.
Theseschedulescontainserviceandinfrastructuredatato
helpthereaderunderstandhowtheinformationintheCity's
financialreportrelatestotheservicestheCityprovidesand
the activities it performs.
100
104
109
111
93
CITY OF EDINA, MINNESOTA
NET ASSETS BY COMPONENT
LAST FOUR FISCAL YEARS
(accrual basis of accounting)
2003200420052006
Governmental activities
Invested in capital assets,
net of related debt21,792,377$ 34,320,784$ 36,092,020$ 69,814,012$
Restricted4,676,748 2,145,488 78,943 -
Unrestricted31,876,783 28,762,040 35,796,801 15,280,058
Total governmental activities
net assets58,345,908$ 65,228,312$ 71,967,764$ 85,094,070$
Business-type activities
Invested in capital assets,
net of related debt29,952,549$ 37,240,476$ 40,044,169$ 46,981,755$
Restricted1,672,828 - - -
Unrestricted15,344,474 11,934,496 11,121,720 6,379,515
Total business-type activities
net assets46,969,851$ 49,174,972$ 51,165,889$ 53,361,270$
Primary government
Invested in capital assets,
net of related debt51,744,926$ 71,561,260$ 76,136,189$ 116,795,767$
Restricted6,349,576 2,145,488 78,943 -
Unrestricted47,221,257 40,696,536 46,918,521 21,659,573
Total primary government
net assets105,315,759$ 114,403,284$ 123,133,653$ 138,455,340$
Fiscal Year
94
CITY OF EDINA, MINNESOTA
CHANGES IN NET ASSETS
LAST FOUR FISCAL YEARS
(accrual basis of accounting)
2003200420052006
Expenses
Governmental activities:
General government5,839,893$ 6,934,045$ 4,967,008$ 5,414,961$
Public safety10,784,215 11,063,767 12,019,027 13,300,351
Public works5,621,291 5,834,490 7,185,784 8,973,031
Parks4,484,685 4,248,060 5,901,648 5,341,682
Interest on long-term debt2,760,022 2,399,682 2,288,524 2,973,749
Total governmental activities expenses29,490,106 30,480,044 32,361,991 36,003,774
Business-type activities:
Utilities7,930,502 7,801,580 8,254,409 9,234,651
Liquor8,764,081 9,110,888 9,749,313 9,968,963
Aquatic center711,061 701,768 725,936 795,614
Golf course3,555,243 3,508,741 3,580,307 3,652,169
Community activity centers3,833,026 3,850,192 3,825,562 4,048,649
Total business-type activities expenses24,793,913 24,973,169 26,135,527 27,700,046
Total primary government expenses54,284,019$ 55,453,213$ 58,497,518$ 63,703,820$
Program Revenues
Governmental activities:
Charges for services:
General government930,391$ 454,603$ 619,526$ 731,613$
Public safety4,213,081 4,634,744 5,614,406 6,146,114
Other activities898,141 748,398 630,157 793,796
Operating grants and contributions1,215,745 1,154,808 1,512,366 1,423,302
Capital grants and contributions7,214,393 4,192,947 2,252,491 4,013,617
Total governmental activities program revenues14,471,751 11,185,500 10,628,946 13,108,442
Business-type activities:
Utilities9,694,981 9,875,078 10,240,381 11,421,474
Liquor9,659,631 10,030,067 10,752,724 11,029,445
Aquatic center861,340 764,134 849,380 867,626
Golf course3,684,079 3,538,122 3,482,999 3,646,620
Community activity centers2,966,731 3,254,012 3,251,860 3,337,153
Operating grants and contributions132,031 138,447 131,408 122,358
Total business-type activities program revenues26,998,793 27,599,860 28,708,752 30,424,676
Total primary government program revenues41,470,544$ 38,785,360$ 39,337,698$ 43,533,118$
Net (Expense)/Revenue
Governmental activities(15,018,355)$ (19,294,544)$ (21,733,045)$ (22,895,332)$
Business-type activities2,204,880 2,626,691 2,573,225 2,724,630
Total primary government net expense(12,813,475)$ (16,667,853)$ (19,159,820)$ (20,170,702)$
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes17,815,426$ 17,865,757$ 19,071,202$ 20,414,298$
Tax increment collections7,342,270 6,761,934 7,060,744 7,228,002
Franchise taxes- 450,956 457,421 499,206
Unrestricted investment earnings286,209 443,074 977,956 1,230,264
Gain on disposal of capital assets26,669 - 63,674 8,418
Transfers(4,053,805) 655,227 841,500 838,230
Total governmental activities21,416,769 26,176,948 28,472,497 30,218,418
Business-type activities:
Unrestricted investment earnings387,117 227,167 236,654 283,771
Gain on disposal of capital assets(177,051) 6,490 22,538 25,210
Transfers4,053,805 (655,227) (841,500) (838,230)
Total business-type activities4,263,871 (421,570) (582,308) (529,249)
Total primary government25,680,640$ 25,755,378$ 27,890,189$ 29,689,169$
Change in Net Assets
Governmental activities6,398,414$ 6,882,404$ 6,739,452$ 7,323,086$
Business-type activities6,468,751 2,205,121 1,990,917 2,195,381
Total primary government12,867,165$ 9,087,525$ 8,730,369$ 9,518,467$
Fiscal Year
95
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1997199819992000
General fund
Reserved1,642,733$ 1,379,739$ 2,407,155$ 141,939$
Unreserved8,301,559 9,540,670 10,051,978 13,755,160
Total general fund9,944,292$ 10,920,409$ 12,459,133$ 13,897,099$
All other governmental funds
Reserved19,646,068$ 1,171,943$ 496,581$ 16,729,995$ a
Unreserved, reported in:
Special revenue funds882,504 948,079 942,791 1,147,917
Capital projects funds16,370,743 16,096,645 18,216,440 22,454,859
Total all other governmental funds36,899,315$ 18,216,667$ 19,655,812$ 40,332,771$
a The substantial increase in reserved fund balance in 2000 is due to a crossover refunding bond issue
that was outstanding as of December 31, 2000.
b The substantial decrease in unreserved fund balance in 2003 is due to the transfer of investment assets
to the Edinborough Park/Centennial Lakes enterprise fund.
c The substantial increase in reserved fund balance in 2005 is due to two crossover refunding bond issues
that were outstanding as of December 31, 2005.
Fiscal Year
96
200120022003200420052006
15,872$ 417,093$ 412,991$ 390,771$ 223,351$ 36,849$
14,359,821 14,325,972 9,961,074 b 10,226,055 11,595,433 13,797,189
14,375,693$ 14,743,065$ 10,374,065$ 10,616,826$ 11,818,784$ 13,834,038$
2,319,839$ 4,186,436$ 4,084,987$ 3,465,440$ 13,792,312$ c 2,682,238$
1,435,949 1,589,518 686,777 781,458 731,027 13,179,904$
22,869,578 26,750,351 19,608,849 16,651,788 17,032,750 3,160,085
26,625,366$ 32,526,305$ 24,380,613$ 20,898,686$ 31,556,089$ 19,022,227$
Fiscal Year
97
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1997199819992000
Revenues
General property taxes17,653,621$ 20,567,867$ 21,995,230$ 22,904,512$
Tax increment collections- - - -
Special assessments955,206 844,070 990,330 1,159,876
Franchise fees331,527 296,427 297,866 336,678
License and permits1,388,968 2,091,365 2,135,541 1,835,828
Intergovernmental1,996,744 2,551,452 3,185,008 1,880,680
Charges for services2,842,923 1,833,148 3,215,441 2,902,666
Fines and forfeitures562,910 691,355 794,710 967,421
Investment income2,238,101 1,396,852 415,114 2,376,137
Rental of property152,398 86,639 284,085 1,156,526
Other revenues194,679 604,099 478,788 96,932
Total revenues28,317,077 30,963,274 33,792,113 35,617,256
Expenditures
General government4,185,297 3,967,091 3,899,660 4,558,424
Public safety7,717,334 8,131,293 8,516,673 8,846,360
Public works3,537,441 4,084,651 3,744,124 3,672,057
Parks2,031,261 1,960,111 2,240,730 2,150,588
Capital outlay16,796,824 7,530,051 6,117,215 8,352,494
Debt service
Principal2,120,000 2,224,724 3,275,000 6,050,000
Interest and other charges4,502,948 4,099,809 3,262,266 3,108,601
Total expenditures40,891,105 31,997,730 31,055,668 36,738,524
Revenues over (under) expenditures(12,574,028) (1,034,456) 2,736,445 (1,121,268)
Other Financing Sources (Uses)
Transfers in5,189,852 5,639,866 5,983,107 6,976,639
Transfers out(6,789,852) (5,711,866) (6,006,107) (6,165,639)
Parkland dedication331,466 387,136 264,424 85,520
Sale of capital assets- - - -
Proceeds from borrowing12,573,354 - - 21,742,116
Premium on bonds issued- - - -
Discount on bonds issued- - - -
Proceeds from refunding- - - -
Payment to refunding escrow(8,080,000) (17,260,276) - -
Principal paid by escrow- - - -
Total other financing sources (uses)3,224,820 (16,945,140) 241,424 22,638,636
Net change in fund balances(9,349,208)$ (17,979,596)$ 2,977,869$ 21,517,368$
Debt service as a percentage of
noncapital expenditures27.5%25.8%26.2%32.3%
Fiscal Year
98
200120022003200420052006
24,409,785$ 24,735,336$ 17,903,618$ 17,865,757$ 19,071,202$ 20,414,298$
- - 7,342,270 6,761,934 7,060,744 7,228,002
1,086,093 998,908 1,019,461 966,879 1,354,264 1,751,219
473,702 418,153 393,627 450,956 457,421 499,206
2,239,611 1,939,207 2,182,263 2,247,759 3,240,622 3,488,897
5,085,981 2,254,968 4,678,735 3,933,540 1,539,169 2,773,350
1,962,172 2,096,806 2,076,519 2,279,302 2,466,663 2,691,354
976,952 910,407 785,227 863,073 742,917 1,023,935
1,357,701 1,178,211 286,209 443,074 977,956 1,230,264
4,262,984 1,782,063 354,266 385,707 315,542 310,145
184,466 180,081 200,551 294,136 227,446 246,797
42,039,447 36,494,140 37,222,746 36,492,117 37,453,946 41,657,467
5,353,002 5,372,431 5,709,741 5,213,469 5,477,308 5,995,804
9,409,291 9,893,428 10,352,816 11,125,388 11,373,763 12,431,114
4,313,065 4,161,373 4,142,668 4,386,669 4,882,811 5,233,907
2,375,565 2,602,266 2,974,164 2,954,372 3,146,029 3,300,375
11,193,155 11,059,757 15,539,676 7,772,321 8,227,191 8,980,526
3,740,000 5,885,000 5,700,000 6,450,000 6,830,000 5,985,000
3,148,719 3,094,480 2,908,787 2,484,291 2,543,639 2,107,036
39,532,797 42,068,735 47,327,852 40,386,510 42,480,741 44,033,762
2,506,650 (5,574,595) (10,105,106) (3,894,393) (5,026,795) (2,376,295)
6,215,411 12,308,480 8,752,126 8,367,595 7,797,369 6,865,258
(6,201,152) (11,552,990) (12,805,931) (7,712,368) (6,955,869) (6,027,028)
60,280 - - - - -
- - - - 135,045 54,457
- 13,637,416 1,540,000 - 15,816,165 -
- - 59,219 - - -
- - - - (36,275) -
- - 6,570,000 - 16,764,721 -
(15,810,000) (2,550,000) (6,525,000) - (16,635,000) -
- - - - - (9,035,000)
(15,735,461) 11,842,906 (2,409,586) 655,227 16,886,156 (8,142,313)
(13,228,811)$ 6,268,311$ (12,514,692)$ (3,239,166)$ 11,859,361$ (10,518,608)$
24.3%29.0%27.1%27.4%27.4%23.1%
Fiscal Year
99
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
City TaxCity
CapacityReferendum
EstimatedLimitedTaxableTotalUsed for RateAdjusted NetRateRate
4,071,654$ DNADNA91,587$ 77,684$ 80,087$ 15.626%0.01659%3.074$
4,074,714 DNADNA87,727 75,545 77,762 16.813%0.01788%3.209
4,267,759 DNADNA85,964 72,221 74,421 17.810%0.01704%3.106
4,535,762 DNADNA90,807 74,705 77,166 17.669%0.01634%3.006
4,861,730 DNADNA99,650 80,964 83,716 17.233%0.01495%2.967
5,821,567 DNADNA72,584 c 59,176 c 61,007 c 27.806%c 0.01200%2.914
6,328,581 DNADNA77,666 63,169 65,145 27.139%0.01100%2.794
6,909,477 DNADNA83,448 68,553 70,756 25.565%0.01000%2.618
8,052,704 7,674,983$ 7,668,117$ 91,310 76,343 78,717 24.085%0.00880%2.354
8,713,166 8,541,954 8,536,086 101,948 86,860 89,272 22.613%0.00703%2.317
Source: Hennepin County Taxpayer Services. 1997-2004 estimated market values obtained from previous CAFRs and do not include personal property.
DNA: Historical data is not available
a Property in the City is assessed annually. Assessed value is equal to market value, although taxable value may be different, as shown.
b This value is estimated by the City Finance Department by taking City taxes as a rate of estimated market value (rate per $1,000 of assessed value).
The property tax system in Minnesota uses a tax capacity system whereby each parcel is assigned a tax capacity based on taxable value and class.
In Minnesota, local taxes are usually expressed as a percentage of this calculated tax capacity (see column titled "City Tax Capacity Rate").
Therefore, this rate is only theoretical and shown for comparative purposes only.
c The State of Minnesota passed property tax reform legislation that significantly reduced tax capacity in 2002.
Estimated
Direct
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)Fiscal
Year
1997
1998
1999
2000
2005
2006
2001
2002
2003
2004
100
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
BasicDebtTotal TaxDirect &
RateRateCapacityRMVHennepinTax Cap.RMVOtherOverlap
DNADNA15.626%0.017%35.515%57.213%DNA6.659%115.013%
DNADNA16.813%0.018%38.388%47.499%DNA7.538%110.238%
DNADNA17.810%0.017%40.994%50.766%DNA8.553%118.123%
DNADNA17.669%0.016%39.655%51.678%DNA8.426%117.428%
DNADNA17.233%0.015%37.624%46.839%DNA8.126%109.822%
26.116%1.690%27.806%a 0.012%50.409%a 18.504%a DNA9.847%106.566%
24.586%2.553%27.139%0.011%50.607%23.312%DNA8.993%110.051%
23.183%2.382%25.565%0.010%47.324%22.670%DNA8.256%103.815%
22.536%1.549%24.085%0.009%44.172%19.694%0.166%8.547%96.498%
20.755%1.858%22.613%0.007%41.016%19.226%0.154%8.104%90.959%
Source: Hennepin County Taxpayer Services. Some 1997-2004 data obtained from previous CAFR's.
RMV: Referendum Market Value
DNA: Historical data is not available
Geographic boundaries for overlapping district are not identical to the City's boundaries. City boundaries contain six different
school districts but only ISD #273 is shown here. Other districts include Mosquito Control, Met Council, Metro Transit,
Hennepin Parks, Park Museum and Regional Railroad Authority. In addition, there are two watershed districts in the City,
Nine Mile Creek and Minnehaha Creek, and rates for Nine Mile are included in Other. Total rates do not include RMV rates.
a The State of Minnesota passed property tax reform legislation that significantly reduced tax capacity in 2002. At the same time,
the state took on greater responsibility for school district funding.
2000
2005
2006
2001
2002
2003
2004
Year
1997
1998
1999
City RatesOverlapping Rates
ISD #273 EdinaFiscal
101
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage ofPercentage of
Tax CapacityRankTotal CapacityTax CapacityRankTotal Capacity
Southdale Shopping Center3,497,098$ 13.43%6,333,776$ 16.92%
Galleria Shopping Center1,525,906 21.50%1,406,890 31.54%
Southdale Office Park738,790 30.72%1,384,050 41.51%
Centennial Lakes Phase V581,944 40.57%- 0.00%
Centennial Lakes Phase IV570,650 50.56%- 0.00%
May Department Stores513,070 60.50%- 0.00%
7700 France Office Bldg461,750 70.45%- 0.00%
Southdale Medical Bldg361,116 80.35%696,480 50.76%
Centennial Lakes Phase III356,748 90.35%- 0.00%
Centennial Lakes Phase II 344,800 100.34%- 0.00%
Pentagon Office Park- 0.00%1,477,916 21.61%
United Healthcare Corporation- 0.00%875,345 60.96%
National Car- 0.00%573,480 70.63%
Centennial Lakes Retail- 0.00%560,218 80.61%
Cedars of Edina- 0.00%519,002 90.57%
Target- 0.00%425,842 100.46%
Totals8,951,872$ 8.78%14,252,999$ 15.56%
Source: City of Edina Assessing Office
19972006
Taxpayer
102
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections
TaxPercentagein SubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
13,206,919$ 13,051,497$ 98.82%65,549$ 13,117,046$ 99.32%
13,827,840 13,728,640 99.28%76,483 13,805,123 99.84%
14,012,337 13,868,630 98.97%81,173 13,949,803 99.55%
14,391,078 14,290,698 99.30%91,042 14,381,740 99.94%
15,165,091 15,053,569 99.26%100,594 15,154,163 99.93%
17,728,603 16,985,098 a 95.81%a 80,839 17,065,937 96.26%
18,506,442 17,808,469 96.23%49,669 17,858,138 96.50%
18,808,903 18,066,892 96.06%89,192 18,156,084 96.53%
19,667,551 19,090,016 97.06%89,974 19,179,990 97.52%
20,820,130 20,310,889 97.55%- 20,310,889 97.55%
Source: Hennepin County Taxpayer Services.
a Beginning in 2002, the State of Minnesota quit reimbursing the City for the homestead market value credit (HMVC) program.
The HMVC program reduces property taxes for certain residential properties and is phased out once a property reaches a
certain assessed value. The program is designed so the State "pays" the amount property taxes were reduced by to local
governments. When the State ended reimbursing the City for HMVC in 2002, tax collections as a percent of levy
dropped, as shown in this table. Due to the phase out provision in the HMVC program, the City anticipates that the
impact of this lost revenue will decrease over time as property values rise above the phase out level.
Total Collections to Date
Taxes
Payable
1997
1998
Collected within the
Fiscal Year of the Levy
1999
2004
2005
2006
2000
2001
2002
2003
103
CITY OF EDINA, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
GeneralPublicTaxPermanentRecreationalUtilityTotalPercentage
ObligationProjectIncrementImprovementFacilityRevenuePrimaryof PersonalPer
DebtRevenueBondsRevolvingBondsBondsGovernmentIncomeCapita
8,090$ -$ 72,390$ 715$ 12,370$ 820$ 94,385$ 6.52%2,007$
8,090 - 53,090 530 8,130 420 70,260 4.51%1,491
7,825 - 50,260 350 10,970 3,600 73,005 4.48%1,546
7,550 - 66,670 170 10,520 3,265 88,175 5.05%1,859
7,250 - 47,590 - 14,670 2,955 72,465 4.08%1,527
6,950 12,410 40,855 - 7,890 2,630 70,735 3.94%1,490
8,165 12,035 35,900 - 7,145 5,495 68,740 3.72%1,445
7,295 11,595 30,760 - 6,325 4,860 60,835 3.09%1,263
11,765 16,560 28,905 1,460 5,475 4,215 68,380 3.48%1,423
5,670 16,080 20,460 1,460 4,595 3,550 51,815 2.67%1,092
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
Business-Type ActivitiesGovernmental Activities
1999
2000
Year
1997
1998
Fiscal
2005
2006
2001
2002
2003
2004
104
CITY OF EDINA, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
GeneralPublicTaxPercentage
ObligationProjectIncrementof PropertyPer
DebtRevenueBondsTotal Value a Capita
8,090$ -$ 72,390$ 80,480$ 1.98%1,711$
8,090 - 53,090 61,180 1.50%1,299
7,825 - 50,260 58,085 1.36%1,230
7,550 - 66,670 74,220 1.64%1,565
7,250 - 47,590 54,840 1.13%1,155
6,950 12,410 40,855 60,215 1.03%1,269
8,165 12,035 35,900 56,100 0.89%1,179
7,295 11,595 30,760 49,650 0.72%1,031
11,765 16,560 28,905 57,230 0.71%1,191
5,670 16,080 20,460 42,210 0.48%890
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
a See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for
estimated property value data.
General Bonded Debt
Year
1997
1998
Fiscal
1999
2000
2005
2006
2001
2002
2003
2004
105
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2006
Net GeneralPercentage
Obligation BondedApplicableCity Share
Debt Outstanding a in City b of Debt
Hennepin County445,110,130$ 7.04%31,335,753$
Hennepin Suburban Park District63,899,496 9.30%5,942,653
Hennepin Regional Rail Authority45,565,046 7.04%3,207,779
School Districts:
ISD No. 273 (Edina)95,408,121 98.43%93,910,214
ISD No. 270 (Hopkins)109,872,926 8.70%9,558,945
ISD No. 271 (Bloomington)220,057,777 0.00%-
ISD No. 272 (Eden Prairie)113,715,767 0.93%1,057,557
ISD No. 280 (Richfield)19,072,456 16.35%3,118,347
ISD No. 283 (St. Louis Park)82,963,459 0.02%16,593
Metro Council142,497,686 3.16%4,502,927
Total Overlapping Debt1,338,162,864 152,650,768
City of Edina24,396,122 100.00%24,396,122
Total Overlapping and Direct Debt1,362,558,986$ 177,046,890$
Ratio of debt per capita (47,448 population)3,731$
Ratio of debt to estimated market valuation of $8,713,166,0002.03%
Source: Hennepin County Taxpayer Services
a Calculation excludes revenue and special assessment bonds as well as sinking fund balance, if any.
b The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Overlapping Debt:
Direct Debt:
Debt Ratios:
106
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
1997199819992000200120022003200420052006
Debt limit81,494$ 85,355$ 90,715$ 97,235$ 116,431$ 138,279$ 138,190$ 160,674$ 173,867$ 191,974$
Total net debt
applicable to limit8,090 8,090 7,825 7,550 7,250 6,950 8,165 7,295 11,765 3,691
Legal debt margin73,404$ 77,265$ 82,890$ 89,685$ 109,181$ 131,329$ 130,025$ 153,379$ 162,102$ 188,283$
Total net debt applicable
to the limit as a percentage
of debt limit9.93%9.48%8.63%7.76%6.23%5.03%5.91%4.54%6.77%1.92%
Market value (after fiscal disparities)
Debt limit (2% of market value)
Debt applicable to limit:
General obligation bonds
Less: Fund balance set aside for
repayment of general obligation debt
Total debt applicable to limit
Legal debt margin
191,974
(1,979)
188,283$
Fiscal Year
Legal Debt Margin Calculation for Fiscal Year 2006
9,598,698$
5,670
3,691
107
CITY OF EDINA, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Less: operatingNet available
RevenueexpensesrevenuePrincipalInterestTotalCoverage
Public Project Revenue Bonds (Annual Appropriation Lease Revenue)
20031,026,437 - 1,026,437 375,000 15,000 390,000 2.63
20041,028,837 - 1,028,837 440,000 557,636 997,636 1.03
20051,058,840 - 1,058,840 460,000 558,486 1,018,486 1.04
20061,501,741 - 1,501,741 480,000 779,778 1,259,778 1.19
Tax Increment Bonds
19974,881,825 - 4,881,825 5,015,000 4,000,869 9,015,869 0.54
19986,784,208 - 6,784,208 19,300,000 4,247,389 23,547,389 0.29
19998,084,657 - 8,084,657 2,830,000 2,797,897 5,627,897 1.44
20008,590,313 - 8,590,313 5,595,000 2,677,383 8,272,383 1.04
20019,309,360 - 9,309,360 3,270,000 3,205,971 6,475,971 1.44
20027,053,836 - 7,053,836 4,570,000 2,355,928 6,925,928 1.02
20037,342,270 - 7,342,270 5,000,000 1,889,329 6,889,329 1.07
20046,761,934 - 6,761,934 5,140,000 1,520,376 6,660,376 1.02
20057,060,744 - 7,060,744 5,465,000 1,327,983 6,792,983 1.04
20067,228,002 - 7,228,002 8,445,000 902,607 9,347,607 0.77
Permanent Improvement Revolving Bonds (Special Assessment)
1997840,238 - 840,238 185,000 39,425 224,425 3.74
1998699,354 - 699,354 185,000 31,008 216,008 3.24
1999855,137 - 855,137 180,000 22,250 202,250 4.23
2000721,871 - 721,871 180,000 13,340 193,340 3.73
2001684,660 - 684,660 170,000 4,420 174,420 3.93
2002 - - - - - - -
2003 - - - - - - -
2004 - - - - - - -
2005 - - - - - - -
200685,656 - 85,656 - 43,366 43,366 1.98
Utility Bond
19978,110,744 7,526,033 584,711 390,000 40,744 430,744 1.36
19988,108,612 7,226,648 881,964 400,000 22,184 422,184 2.09
19998,502,423 6,713,673 1,788,750 420,000 83,429 503,429 3.55
20008,793,386 7,205,934 1,587,452 335,000 127,525 462,525 3.43
20018,556,810 7,065,589 1,491,221 310,000 116,794 426,794 3.49
20028,561,287 7,399,773 1,161,514 325,000 105,205 430,205 2.70
20039,668,434 7,769,810 1,898,624 335,000 160,691 495,691 3.83
20049,473,355 7,643,129 1,830,226 635,000 158,451 793,451 2.31
200510,225,975 8,107,039 2,118,936 645,000 141,226 786,226 2.70
200611,416,361 9,107,143 2,309,218 665,000 129,608 794,608 2.91
Recreational Facility Bonds
19974,440,202 3,945,975 494,227 295,000 762,411 1,057,411 0.47
19985,042,394 4,270,042 772,352 4,240,000 372,390 4,612,390 0.17
19995,141,606 4,332,932 808,674 430,000 522,050 952,050 0.85
20005,727,930 5,209,610 518,320 450,000 553,962 1,003,962 0.52
20015,430,507 5,231,143 199,364 470,000 531,176 1,001,176 0.20
20025,424,422 5,031,839 392,583 6,780,000 611,509 7,391,509 0.05
20035,866,300 5,511,730 354,570 745,000 265,602 1,010,602 0.35
20045,621,743 5,492,510 129,233 820,000 241,387 1,061,387 0.12
20055,708,827 5,604,464 104,363 850,000 214,108 1,064,108 0.10
20065,929,984 5,808,902 121,082 880,000 199,260 1,079,260 0.11
Debt service requirementsFiscal
Year
108
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Estimated
PersonalPer CapitaHigh School
IncomePersonalGraduationUnemployment
Population(In thousands)IncomeRateRate
47,0291,446,612$ 30,760$ 88.2%1.60%
47,1131,556,896 33,046 88.2%1.50%
47,2351,628,002 34,466 88.2%1.60%
47,4251,747,042 36,838 88.2%2.40%
47,4651,774,194 37,379 91.5%3.30%
47,4651,796,693 37,853 91.5%4.00%
47,5701,847,429 38,836 91.5%4.10%
48,1561,970,303 40,915 93.1%3.90%
48,0501,965,966 40,915 93.1%3.30%
47,4481,941,335 40,915 93.1%3.00%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council.
Personal income estimates based on U.S. Department of Commerce Bureau of Economic Analysis data for the entire
seven-county metropolitan area.
Per-capita personal income data from U.S. Department of Commerce Bureau of Economic Analysis for the entire
seven-county metropolitan area.
High school graduation rate data from U.S. Census Bureau for all of Hennepin County.
Unemployment rate data from State of Minnesota Department of Employment and Economic Development.
1998
1997
Fiscal
Year
2006
2005
2004
2003
2002
2001
2000
1999
109
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage ofPercentage of
Total CityTotal City
EmployeesRankEmploymentEmployeesRankEmployment
Jerry's Enterprises, Inc.4,500 119.09%2,000 27.87%
Fairview Southdale Hospital2,500 210.61%2,400 19.45%
Marshall Field's1,200 35.09%500 51.97%
Edina Public Schools ISD #2731,172 44.97%DNA0.00%
Nash Finch Co.350 51.48%350 81.38%
International Dairy Queen Inc.300 61.27%300 91.18%
City of Edina262 71.11%261 101.03%
JC Penney Co.250 81.06%400 61.57%
Edina Realty210 90.89%DNA0.00%
Con Agra Foods-Snack Food Gr.196 100.83%DNA0.00%
Golden Valley Microwave Foods- 0.00%650 32.56%
Health Risk Management Inc.- 0.00%552 42.17%
Norwest Funding- 0.00%358 71.41%
Totals10,940 46.41%7,771 30.59%
Source: State of Minnesota Department of Employment and Economic Development (DEED).
DNA: Historical data is not available
19972006
Employer
110
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
1997199819992000200120022003200420052006
General Government
Administration8.00 8.00 8.00 8.00 8.00 8.25 8.25 8.25 8.25 8.25
Planning3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75
Finance5.40 5.40 5.40 5.50 5.75 5.50 5.50 5.50 5.50 5.50
Elections0.50 0.50 0.50 0.50 0.50 1.00 1.00 1.00 1.00 1.00
Assessing6.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Public Works
Administration1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Engineering7.50 7.50 7.50 7.50 7.50 7.50 6.50 7.50 7.50 7.50
Supervision2.00 2.00 2.00 2.00 2.50 2.50 2.50 2.50 2.50 2.50
Maintenance28.00 28.00 28.00 28.00 27.00 28.00 28.00 28.00 28.00 28.00
Public Safety
Police Protection66.00 66.00 66.00 67.00 70.00 69.00 68.00 66.00 69.00 69.00
Animal Control1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Fire Protection30.00 30.00 30.00 31.00 32.00 32.00 32.00 32.00 32.00 32.00
Public Health2.58 3.58 3.08 3.08 3.08 3.75 2.75 2.75 2.75 2.75
Inspections5.00 5.00 5.75 5.75 6.75 6.50 6.50 6.50 6.50 6.50
Parks & Recreation
Administration7.00 7.00 7.00 7.00 7.00 7.00 7.00 6.80 6.80 6.80
Maintenance16.00 16.00 16.00 16.00 17.00 17.00 16.00 16.50 16.40 16.40
Central Services
General1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00
City Hall1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10
Public Works Building0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90
Equipment Operation7.00 7.00 7.00 7.00 6.50 6.50 6.50 6.50 6.50 6.50
Utilities 15.50 15.50 16.25 16.25 15.70 14.50 14.50 15.50 15.75 15.75
Liquor 10.00 10.00 10.00 10.00 9.30 9.75 9.75 9.75 9.75 9.75
Aquatic Center - - - - - - - 0.20 0.55 0.55
Golf Course 14.00 14.00 14.00 14.00 14.00 15.00 15.00 13.00 13.00 13.00
Arena 4.00 4.00 4.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00
Art Center 2.00 2.00 3.00 3.00 3.00 3.00 3.00 3.00 2.50 2.00
Edinborough/Centennial 13.00 13.00 13.00 12.00 13.00 12.00 12.00 12.00 12.00 11.00
Other 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Total 260.73 261.73 264.73 266.83 272.83 273.00 270.00 268.50 271.50 270.00
Source: City of Edina Finance Department
a Employee counts do not include Council members, part-time, contract or seasonal employees.
Budgeted Full-time Employees for Fiscal Year a
Function
111
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
1997199819992000200120022003200420052006
General Government
Total City employees- - - 801 868 860 879 870 909 887
Votes cast a 3,190 27,246 3,099 30,483 10,008 28,156 10,721 31,730 1,367 26,270
Public Works
Asphalt placed (tons)- - - - - - - - - 9,000
Concrete (cu. yds.)- - - - - - - - - 650
Public Safety
Crimes reported- - - - 2,411 2,139 2,073 1,983 1,908 1,937
Fire calls1,133 1,155 1,131 1,091 1,142 1,106 1,062 1,060 1,055 963
Medical calls2,755 2,700 2,812 2,914 2,931 3,153 3,030 3,199 3,423 3,470
Central Services
Vehicle fixes- - - - - - - - - 2,398
Utilities
Daily consumption b - - - - - - - - - 7,209
Sewer cleaned (miles)- - - - - - - - - 48
Aquatic Center
Attendance90,000 130,000 132,000 125,000 115,000 111,056 96,419 88,636 139,415 120,406
Golf Course
Total rounds played140,631 149,776 142,862 137,838 120,898 112,078 123,770 116,734 113,679 114,737
Source: Various City departments
Note: The City prepared this schedule for the first time in 2006, therefore, some historical data is not readily available.
a The City Elections department runs general elections in even-numbered years and school district elections in odd-numbered years.
Number of votes cast tend to vary between even and odd-numbered years and based on presidential election cycles.
b Daily average of water pumped from city wells, measured in thousands of gallons.
Fiscal Year
Function
112
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
1997199819992000200120022003200420052006
Public Works
Miles of streets224 224 224 224 224 224 224 224 224 224
City parking ramps4 4 4 4 4 4 4 4 4 4
Public Safety
Fire stations2 2 2 2 2 2 2 2 2 2
Parks & Recreation
City parks39 39 39 39 39 39 40 40 40 40
Acreage of parks1,552 1,552 1,552 1,552 1,552 1,552 1,553 1,553 1,553 1,553
Park buildings26 26 26 26 26 27 27 27 27 27
Utilities
Wells18 18 18 18 18 18 18 18 18 18
Watermain miles199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles186 186 186 186 186 186 186 186 186 186
Sewer connections13,783 13,984 13,984 13,984 13,984 13,984 13,984 14,851 14,851 14,851
Arena
Ice sheets3 3 3 3 3 3 3 3 3 3
Source: Various City departments
Note: The City prepared this schedule for the first time in 2006, therefore, some historical data is not readily available.
Fiscal Year
Function
113