HomeMy WebLinkAbout2007 Comprehensive Annual Financial ReportParksRecreation
City of Edina , Minn E sota
Comprehensive AnnuAl
FinAnCiAl report
For the Fiscal Year ended December 31, 2007
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2007
Prepared by:
Department of Finance
John Wallin – Treasurer and Finance Director
Eric Roggeman – Assistant Finance Director
Paula Nelson – Accountant
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
I. INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 4
Organization 5
Organization Chart 6
II. FINANCIAL SECTION
Independent Auditors' Report 7
Management's Discussion and Analysis9
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 21
Statement of Activities 22
Fund Financial Statements:
Balance Sheet - Governmental Funds 25
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 26
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 27
Statement of Net Assets - Proprietary Funds 28
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary Funds 29
Statement of Cash Flows - Proprietary Funds 30
Statement of Fiduciary Net Assets - Fiduciary Funds 32
Notes to the Financial Statements 33
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund 63
Notes to Required Supplementary Information 69
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Combining and Individual Non Major Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Special Revenue Funds 72
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds 73
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 74
Combining Statement of Net Assets - Nonmajor Proprietary Funds 76
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets - Nonmajor Proprietary Funds 77
Combining Statement of Cash Flows - Nonmajor Proprietary Funds 78
Combining Statement of Changes in Assets and Liabilities - Agency Funds 81
Supplementary Financial Information:
Combined Schedule of Bonded Indebtedness 84
Tax Capacity, Tax Levies and Tax Capacity Rates 86
Schedule of Sources and Uses of Public Funds for 50th & France - #1200 87
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1201 88
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #1202 89
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1203 90
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207 91
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component 94
Changes in Net Assets 95
Fund Balances of Governmental Funds 96
Changes in Fund Balances of Governmental Funds 98
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property 100
Direct and Overlapping Tax Capacity Rates 101
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 Outstanding 105
Direct and Overlapping Governmental Activities Debt 106
Legal Debt Margin Information 107
Pledged Revenue Coverage 108
Demographic and Economic Information:
Demographic and Economic Statistics 109
Principal Employers 110
Operating Information:
Full-Time Equivalent City Government Employees by Function 111
Operating Indicators by Function 112
Capital Asset Statistics by Function 113
This page left blank intentionally.
2
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 is near the end of 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.
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 $899,312
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.
3
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to City of Edina for its
comprehensive annual financial report for the fiscal year ended December 31, 2006. This was the first
year that the government has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
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
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2007
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
7
INDEPENDENT AUDITOR’S REPORT
To the City Council and Residents
City of Edina, Minnesota
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Edina (the City)
as of and for the year ended December 31, 2007, which collectively comprise the City’s basic financial
statements as listed in the table of contents. These financial statements are the responsibility of the City’s
management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, business-type activities, each major fund, and
the aggregate remaining fund information of the City at December 31, 2007, as well as the respective
changes in financial position and cash flows thereof, where applicable, for the year then ended in
conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 19, 2008
on our consideration of the City’s internal control over financial reporting and our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose
of this report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. This report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis and required supplementary information, as listed in the
table of contents, are not required parts of the basic financial statements, but are supplementary
information required by accounting principles generally accepted in the United States of America. We
have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and, accordingly, we express no opinion on it.
(continued)
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, 2007. 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
$149,512,709 (net assets). Of this amount, $38,785,667 (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 $12,101,854. $6,319,262 of this increase is due to the
City’s use of tax increment revenues to pay down tax increment debt.
• As of the close of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $40,958,166, an increase of $8,101,901 in comparison with the prior year. Of
this total amount, $34,681,990, or 85%, 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
$14,078,220, or 51% of total general fund expenditures.
• The City’s total bonded debt increased by $12,160,000 during the current fiscal year, from
$51,815,000 to $63,975,000. The City issued new debt during the year consisting of $5,865,000
in general obligation capital improvement plan bonds for the reconstruction of Fire Station #1,
$5,870,000 permanent improvement revolving bonds to finance special assessment projects, and
$8,210,000 of utility revenue bonds to pay for infrastructure improvements.
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.
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.
Management’s Discussion and Analysis (Continued)
11
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 $149,512,709 at the close of the most
recent fiscal year.
The largest portion of the City's net assets ($110,727,042 or 74%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
12
City of Edina’s Net Assets
2007 2006 2007 2006 2007 2006
Current and
other assets49,961,109$ 41,259,640$ 16,432,230$ 9,491,418$ 66,393,339$ 50,751,058$
Capital assets99,739,977 94,526,473 57,854,580 55,071,948 157,594,557 149,598,421
Total assets149,701,086$ 135,786,113$ 74,286,810$ 64,563,366$ 223,987,896$ 200,349,479$
Long-term liabilities
outstanding43,845,870$ 39,182,228$ 13,071,516$ 7,067,320$ 56,917,386$ 46,249,548$
Other liabilities13,038,022 11,509,815 4,519,779 4,134,776 17,557,801 15,644,591
Total liabilities56,883,892$ 50,692,043$ 17,591,295$ 11,202,096$ 74,475,187$ 61,894,139$
Net assets:
Invested in capital
assets, net of
related debt67,680,882$ 69,814,012$ 43,046,160$ 46,981,755$ 110,727,042$ 116,795,767$
Unrestricted 25,136,312 15,280,058 13,649,355 6,379,515 38,785,667 21,659,573
Total net assets92,817,194$ 85,094,070$ 56,695,515$ 53,361,270$ 149,512,709$ 138,455,340$
Governmental Activities Business-Type Activities Totals
The remaining balance of unrestricted net assets ($38,785,667) 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 all of the categories
of net assets reported, both for the government as a whole, as well as for its separate governmental
and business-type activities. The same situation held true for the prior fiscal year.
There was also an increase of $17,126,094 in unrestricted net assets, largely due to the issuance of
debt for roadway and utility infrastructure projects that were mostly completed in the prior year and
paid for by the City using unrestricted assets.
As shown below, the City’s net assets increased by $11,057,369 (including a prior period adjustment)
during the current fiscal year. Factors contributing to this change are discussed in the next two
sections.
Management’s Discussion and Analysis (Continued)
13
City of Edina's Changes in Net Assets
2007 2006 2007 2006 2007 2006
Revenues:
Program revenues:
Charges for services7,153,630$ 7,671,523$ 32,578,430$ 30,302,318$ 39,732,060$ 37,973,841$
Operating grants and
contributions1,384,024 1,423,302 127,492 122,358 1,511,516 1,545,660
Capital grants and
contributions4,299,509 4,013,617 - - 4,299,509 4,013,617
General revenues:
Property taxes 21,459,001 20,414,298 - - 21,459,001 20,414,298
Other taxes 8,364,448 7,727,208 - - 8,364,448 7,727,208
Gain on disposal
of assets 58,377 8,418 7,604 25,210 65,981 33,628
Unrestricted investment
earnings 1,581,702 1,230,264 510,678 283,771 2,092,380 1,514,035
Total revenues44,300,691 42,488,630 33,224,204 30,733,657 77,524,895 73,222,287
Expenses:
General government 7,039,298 6,493,340 - - 7,039,298 6,493,340
Public safety 13,743,194 13,300,351 - - 13,743,194 13,300,351
Public works 8,757,022 8,973,031 - - 8,757,022 8,973,031
Parks 5,025,560 5,341,682 - - 5,025,560 5,341,682
Interest on long-term debt1,887,633 1,895,370 - - 1,887,633 1,895,370
Utilities - - 10,036,844 9,234,651 10,036,844 9,234,651
Liquor - - 10,361,998 9,968,963 10,361,998 9,968,963
Aquatic center - - 780,981 795,614 780,981 795,614
Golf course - - 3,621,977 3,652,169 3,621,977 3,652,169
Community activity
centers - - 4,168,534 4,048,649 4,168,534 4,048,649
Total expenses 36,452,707 36,003,774 28,970,334 27,700,046 65,423,041 63,703,820
Increase in net assets
before transfers 7,847,984 6,484,856 4,253,870 3,033,611 12,101,854 9,518,467
Transfers 919,625 838,230 (919,625) (838,230) - -
Increase in net assets 8,767,609 7,323,086 3,334,245 2,195,381 12,101,854 9,518,467
Net assets - January 1,
previously reported 85,094,070 71,967,764 53,361,270 51,165,889 138,455,340 123,133,653
Infrastructure change
(footnote 1P)(1,044,485) 5,803,220 - - (1,044,485) 5,803,220
Net assets - January 1,
as restated 84,049,585 77,770,984 53,361,270 51,165,889 137,410,855 128,936,873
Net assets - December 3192,817,194$ 85,094,070$ 56,695,515$ 53,361,270$ 149,512,709$ 138,455,340$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
14
Governmental Activities
Governmental activities increased the City's net assets by $8,767,609, accounting for 72% of the total
growth in net assets. Key elements of this increase are as follows:
• Property tax revenues increased by $1,044,703 (5.1%) during the year, which is greater than
the property tax levy increase of 3.5% outlined in our 2007 budget due to the State
Legislature’s action to reinstate the Market Value Homestead Credit (MVHC).
• The City also collected $7,793,577 in tax increments, which were used to pay principal and
interest on tax increment debt. This increases net assets because debt principal payments
are not expensed on the Statement of Activities.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Revenues by Source - Governmental Activities
Property taxes
48%
Charges for services
16%
Operating grants and
contributions
3%
Capital grants and
contributions
10%
Other
4%
Other taxes
19%
-
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
Management’s Discussion and Analysis (Continued)
15
Business-type Activities
Business-type activities increased net assets by $3,334,245 accounting for 28% 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 7.5% from 2006. The Utilities fund
charges for services increased $1,704,299 (15%) from the previous year due to increased
rates. The City commissioned a utility rate study for the 2007 year that called for significant
rate increases to pay for current and future infrastructure needs.
• Business-type activities made net transfers of $919,625 to governmental activities during
2007 to provide cash flow for operational and capital improvement needs.
Revenues by Source - Business-type Activities
Other
1.6%
Operating grants
and contributions
0.4%
Charges for
services
98.1%
-
2
4
6
8
10
12
14
Millions
UtilitiesLiquorAquatic centerGolf courseCommunity
activity
centers
Expenses and Program Revenues - Business-type
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
16
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City’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 $40,958,166, an increase of $8,101,901 in comparison with the prior year. Approximately
85% of this total amount ($34,681,990) constitutes unreserved fund balance. The remainder of the
fund balance is reserved because it has already been committed 1) to provide for prepaid items
($28,637), 2) to pay committed contracts ($2,180,782), 3) for special projects ($254,104), 4) for fire
station reconstruction ($922,112) or 5) to pay debt service ($2,890,541).
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 $14,078,220. As a measure of the general fund’s
liquidity, unreserved fund balance represents 51% of total general fund expenditures.
The fund balance of the City’s general fund increased by $272,819 during the current fiscal year. Key
factors in this growth are as follows:
• General fund property tax revenues increased by 6.7% in the current fiscal year despite a
levy increase of only 4.5%. The difference came from receipt of the Market Value Homestead
Credit (MVHC), which the City did not receive in 2006.
• Total general fund expenditures increased 6.3% 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 2007 budget, which
projected an expenditure increase of 7.3%.
• The liquor fund transferred $721,200 of profits to the general fund.
• The general fund made transfers totaling $851,675 to other funds, the majority of which was
transferred to the construction fund to finance our Capital Improvement Program, as
stipulated in the fund balance section of our financial management policies.
The Housing and Redevelopment Authority fund balance increased by $1,565,365 in the current
fiscal year because tax increment collections exceeded principal and interest payments on tax
increment debt.
The debt service fund has a total fund balance of $2,890,541, all of which is reserved for the payment
of debt service. The net increase in fund balance during the current year in the debt service fund was
$696,228. Fund balance increased during the year due to the deposit of capitalized interest from
bonds issued during the year into the debt service fund for the purpose of making interest payments
shortly after year-end.
The construction fund balance increased by $5,562,310 in 2007 due to several factors, including a
significant increase in intergovernmental revenue due to Municipal State Aid (MSA) receipts during
the year. Spending also increased to $11,063,952 during the year as the City is involved in several
large projects including the fire station reconstruction and street reconstruction projects. Other
financing sources also increased in 2007 due to receipt of a transfer of unreserved undesignated fund
balance from the general fund to support our Capital Improvement Program in addition to the
issuance of debt to finance special assessments and the fire station reconstruction.
Management’s Discussion and Analysis (Continued)
17
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net assets of the utility fund at the end of the year amounted to $8,675,342. The total
growth in net assets was $3,310,163. Operating revenues and expenses in the utilities fund increased
by 15% and 7%, respectively, in 2007, due to rate increases that are intended to help replace aging
infrastructure. The City invested $4,968,721 in utility fund capital assets during 2007.
Unrestricted net assets of the liquor fund at the end of the year amounted to $1,568,460. The total
growth in net assets was $12,977. The liquor fund continues to transfer profits back into other City
funds, including the general fund, construction fund, and arena fund. The liquor fund made transfers
totaling $1,061,200 to other funds during 2007. The majority of this amount ($721,200) was
transferred to the general fund according to the budget.
Unrestricted net assets of the aquatic center fund at the end of the year amounted to $938,907.
Aquatic center revenues and expenses decreased slightly from 2006 due to lower attendance figures,
but the aquatic center remains profitable.
Unrestricted net assets of the golf course fund at the end of the year amounted to ($1,528,292), a
decrease of $289,106 from the prior year. Unrestricted net assets have been declining for a number
of years in the golf course fund because cash flow is not sufficient to make principal and interest
payments on outstanding debt. Total rounds played in 2007 decreased to 112,821, the second lowest
total of the last ten fiscal years.
General Fund Budgetary Highlights
During the year there was a $650,000 increase in appropriations between the original and final
amended budget. The main component of the increase was a transfer to the construction fund of
unreserved and undesignated general fund balance according to the City’s fund balance policy.
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 property tax revenues that exceeded budget by $340,325 due to
action by the State legislature to correct the Market Value Homestead Credit (MVHC) program. 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.
The employee programs department was $119,763 over budget due to a high number of severance
payments for employees who retired after long tenures with the City.
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, 2007, amounted to $157,594,557 (net of accumulated depreciation).
This investment in capital assets included land, land improvements, buildings, vehicles and
equipment. The total increase in the City’s investment in capital assets for the current fiscal year was
6 percent (a 7 percent increase for governmental activities and a 5% increase for business-type
activities).
Management’s Discussion and Analysis (Continued)
18
Major capital asset events during the current fiscal year included the following:
• The City began reconstruction of Fire Station #1 on Tracy Avenue; construction in progress
as of the close of the fiscal year has reached $3,007,803.
• A variety of street construction, sidewalk and traffic signal projects began in 2007;
construction in progress as of the close of the year reached $6,620,423.
• A variety of parks improvement projects; construction in progress as of the close of the fiscal
year reached $5,101,283.
• A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer; construction in progress as of the close of the fiscal year reached $4,580,127.
• Three backwash recycling plants were completed during the year at a total cost of
$3,034,056.
City of Edina’s Capital Assets
(Net of Depreciation)
2007 2006 2007 2006 2007 2006
Land and land
improvements 26,795,278$ 27,594,770$ 5,131,094$ 5,437,869$ 31,926,372$ 33,032,639$
Buildings and
improvements 29,542,652 29,683,371 6,815,285 7,306,756 36,357,937 36,990,127
Machinery and equipment 8,438,435 8,534,774 2,293,057 2,297,256 10,731,492 10,832,030
Infrastructure 19,582,847 19,640,245 39,035,017 34,203,875 58,617,864 53,844,120
Construction in progress 15,380,765 8,028,828 4,580,127 5,826,192 19,960,892 13,855,020
Total99,739,977$ 93,481,988$ 57,854,580$ 55,071,948$ 157,594,557$ 148,553,936$
Governmental Activities Business-Type Activities Totals
The City restated infrastructure assets as of January 1, 2007, to correct an error in the previously
reported infrastructure inventory 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 $63,975,000, an increase of $12,160,000 from 2006. The key factor in this increase
was the issuance of $5,865,000 of General Obligation Capital Improvement Plan (CIP) bonds,
$8,210,000 of General Obligation Revenue bonds, and $5,870,000 of General Obligation Permanent
Improvement Revolving (PIR) bonds.
$10,990,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount increased from 2006 due to the fire station CIP bonds.
$7,170,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program.
An additional $15,665,000 of general obligation tax increment debt financed the City’s economic
development program. This amount decreased in 2007 due to regularly scheduled principal payments
on outstanding issues.
Also outstanding is $15,390,000 public project revenue bonds which financed the City Hall and Police
facility as well as two gymnasiums.
There is a total of $14,760,000 in revenue bonds for improvements to the enterprise funds.
Management’s Discussion and Analysis (Continued)
19
City of Edina’s Outstanding Debt
2007 2006 2007 2006 2007 2006
Tax increment bonds 15,665,000$ 20,460,000$ -$ -$ 15,665,000$ 20,460,000$
General obligation bonds 10,990,000 5,670,000 - - 10,990,000 5,670,000
Public improvement bonds 7,170,000 1,460,000 - - 7,170,000 1,460,000
Public project revenue bonds 15,390,000 16,080,000 - - 15,390,000 16,080,000
Revenue bonds - - 14,760,000 8,145,000 14,760,000 8,145,000
Total49,215,000$ 43,670,000$ 14,760,000$ 8,145,000$ 63,975,000$ 51,815,000$
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 $199,774,750. Only $8,099,459 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 2008 was 3.1%, well below the state and national levels. 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 real estate increased 3.8% for taxes payable in 2008 after a 10% increase the year
before. The City Council is currently reviewing several redevelopment projects that would make this
trend likely to continue.
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%
1998199920002001200220032004200520062007
Tax Capacity
Market Value
Management’s Discussion and Analysis (Continued)
20
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 for real estate increased 5.9% for taxes payable in 2008, 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.
All of these factors above were considered in preparing the City’s budget for the 2008 fiscal year. The
City’s adopted 2008 budget includes a property tax levy of $20,314,404 for the general fund, an
increase of 4.6% from the 2007 general fund levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2007
GovernmentalBusiness-type
Activities Activities Total
Assets:
Current assets:
Cash and cash equivalents 534,967$ 1,003,598$ 1,538,565$
Investments 40,210,223 10,201,538 50,411,761
Restricted investments 2,815,517 - 2,815,517
Accrued interest 69,243 52,611 121,854
Accounts receivable, net 424,000 3,482,142 3,906,142
Special assessments receivable 4,936,978 206,800 5,143,778
Due from other governments 660,788 2,593 663,381
Prepaid items 28,637 311,064 339,701
Inventory - 1,114,729 1,114,729
Total current assets 49,680,353 16,375,075 66,055,428
Noncurrent assets:
Deferred charges 280,756 57,155 337,911
Nondepreciable capital assets 32,705,594 5,669,092 38,374,686
Depreciable capital assets (net)67,034,383 52,185,488 119,219,871
Total noncurrent assets 100,020,733 57,911,735 157,932,468
Total assets 149,701,086 74,286,810 223,987,896
Liabilities:
Current liabilities:
Accounts payable 2,834,327 964,036 3,798,363
Salaries payable 558,023 150,917 708,940
Accrued interest payable 845,742 313,169 1,158,911
Contracts payable 339,983 3,398 343,381
Due to other governments 30,602 151,571 182,173
Deposits payable 30,425 119,829 150,254
Unearned revenue 3,915 91,461 95,376
Compensated absences payable 1,305,005 395,398 1,700,403
Bonds payable 7,090,000 2,330,000 9,420,000
Total current liabilities 13,038,022 4,519,779 17,557,801
Noncurrent liabilities:
Compensated absences payable 1,957,507 593,096 2,550,603
Bonds payable, net of unamortized discount 41,888,363 12,478,420 54,366,783
Total noncurrent liabilities 43,845,870 13,071,516 56,917,386
Total liabilities 56,883,892 17,591,295 74,475,187
Net assets:
Invested in capital assets, net of related debt 67,680,882 43,046,160 110,727,042
Unrestricted 25,136,312 13,649,355 38,785,667
Total net assets 92,817,194$ 56,695,515$ 149,512,709$
Primary Government
The accompanying notes are an integral part of these financial statements
21
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2007
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government 7,039,298$ 784,659$ 332,872$ -$
Public safety 13,743,194 5,632,642 849,966 -
Public works 8,757,022 322,211 195,000 4,299,509
Parks 5,025,560 414,118 6,186 -
Interest on long-term debt 1,887,633 - - -
Total government activities 36,452,707 7,153,630 1,384,024 4,299,509
Business-type activities:
Utilities 10,036,844 13,125,773 107,575 -
Liquor 10,361,998 11,436,175 - -
Aquatic center 780,981 868,833 - -
Golf course 3,621,977 3,630,538 - -
Community activity centers 4,168,534 3,517,111 19,917 -
Total business-type activities28,970,334 32,578,430 127,492 -
Total primary government 65,423,041$ 39,732,060$ 1,511,516$ 4,299,509$
The accompanying notes are an integral part of these financial statements.
Program Revenues
22
GovernmentalBusiness-type
Activities Activities Total
(5,921,767)$ -$ (5,921,767)$
(7,260,586) - (7,260,586)
(3,940,302) - (3,940,302)
(4,605,256) - (4,605,256)
(1,887,633) - (1,887,633)
(23,615,544) - (23,615,544)
- 3,196,504 3,196,504
- 1,074,177 1,074,177
- 87,852 87,852
- 8,561 8,561
- (631,506) (631,506)
- 3,735,588 3,735,588
(23,615,544) 3,735,588 (19,879,956)
General revenues:
Property taxes 21,459,001 - 21,459,001
Tax increment collections 7,793,577 - 7,793,577
Franchise taxes 570,871 - 570,871
Unrestricted investment earnings 1,581,702 510,678 2,092,380
Gain on disposal of capital assets 58,377 7,604 65,981
Transfers 919,625 (919,625) -
Total general revenues and transfers 32,383,153 (401,343) 31,981,810
Change in net assets 8,767,609 3,334,245 12,101,854
Net assets - beginning, as restated 84,049,585 53,361,270 137,410,855
Net assets - ending 92,817,194$ 56,695,515$ 149,512,709$
Net (Expense) Revenue and
Changes in Net Assets
23
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24
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2007
Housing &NonmajorTotal
RedevelopmentDebt GovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Assets
Cash and cash equivalents287,479$ 8,428$ 226,874$ 4,542$ 7,644$ 534,967$
Investments - unrestricted15,427,296 14,181,995 2,102,733 7,863,176 635,023 40,210,223
Investments - restricted - - - 2,815,517 - 2,815,517
Accrued interest - 46,249 - 18,820 4,174 69,243
Accounts receivable 265,267 - - 1,967 156,766 424,000
Special assessments
receivable - - 2,188,685 2,748,293 - 4,936,978
Due from other funds 185,000 29,521 545,000 - - 759,521
Due from other governments376,167 32,645 15,934 20,284 215,758 660,788
Prepaid items 28,637 - - - - 28,637
Total assets 16,569,846$ 14,298,838$ 5,079,226$ 13,472,599$ 1,019,365$ 50,439,874$
Liabilities and fund balances
Liabilities:
Accounts payable 1,660,545$ 221,220$ -$ 813,828$ 138,734$ 2,834,327$
Salaries payable 551,589 - - 2,249 4,185 558,023
Contracts payable - - - 339,983 - 339,983
Due to other funds 229,521 - - 345,000 185,000 759,521
Due to other governments 3,834 14,701 - 12,067 - 30,602
Deposits payable 17,500 - - 12,925 - 30,425
Unearned revenue - - - - 3,915 3,915
Deferred revenue - - 2,188,685 2,736,227 - 4,924,912
Total liabilities 2,462,989 235,921 2,188,685 4,262,279 331,834 9,481,708
Fund balance:
Reserved for:
Prepaid items 28,637 - - - - 28,637
Encumbrances - - - 2,180,782 - 2,180,782
Special projects - - - 254,104 - 254,104
Fire station construction - - - 922,112 - 922,112
Debt service - - 2,890,541 - - 2,890,541
Unreserved:
Designated, reported in:
General Fund 13,178,908 - - - - 13,178,908
Capital Project Funds - - - 5,853,322 - 5,853,322
Undesignated, reported in:
General Fund 899,312 - - - - 899,312
Special Revenue Funds - 14,062,917 - - 687,531 14,750,448
Total fund balance 14,106,857 14,062,917 2,890,541 9,210,320 687,531 40,958,166
Total liabilities and
fund balances 16,569,846$ 14,298,838$ 5,079,226$ 13,472,599$ 1,019,365$ 50,439,874$
Fund balance reported above 40,958,166$
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not financial resources, and therefore,
are not reported in the funds 99,739,977
Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred in the funds 4,924,912
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.(52,805,861)
Net assets of governmental activities 92,817,194$
The accompanying notes are an integral part of these financial statements.
25
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2007
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes 19,379,711$ -$ 2,079,290$ -$ -$ 21,459,001$
Tax increment collections - 7,793,577 - - - 7,793,577
Special assessments - - 391,921 1,358,523 - 1,750,444
Franchise fees - - - - 570,871 570,871
License and permits 2,877,058 - - 32,463 - 2,909,521
Intergovernmental 930,840 - - 2,453,815 314,351 3,699,006
Charges for services 2,685,552 - - 63,157 - 2,748,709
Fines and forfeitures 971,486 - - - - 971,486
Investment income 428,796 522,080 42,696 544,471 43,659 1,581,702
Rental of property 355,143 - - 591 - 355,734
Other revenues 88,502 - - 71,264 66,073 225,839
Total revenues 27,717,088 8,315,657 2,513,907 4,524,284 994,954 44,065,890
Expenditures:
Current:
General government 4,206,672 1,329,686 - 18,174 989,775 6,544,307
Public safety 12,873,779 - - 111,436 - 12,985,215
Public works 5,519,530 - - 268,089 - 5,787,619
Parks 3,394,923 - - 60,866 - 3,455,789
Capital outlay:
General government 16,392 - - 107,109 - 123,501
Public safety 600,948 - - 2,905,269 - 3,506,217
Public works 662,796 - - 6,601,466 - 7,264,262
Parks 105,599 - - 991,543 - 1,097,142
Debt service:
Bond principal - - 6,190,000 - - 6,190,000
Interest and fiscal charges - - 1,677,770 - - 1,677,770
Total expenditures 27,380,639 1,329,686 7,867,770 11,063,952 989,775 48,631,822
Revenues over
(under) expenditures 336,449 6,985,971 (5,353,863) (6,539,668) 5,179 (4,565,932)
Other financing sources (uses):
Transfers in 721,200 - 5,644,191 925,000 - 7,290,391
Transfers out (851,675) (5,420,606) - (98,485) - (6,370,766)
Sale of capital assets 66,845 - - - - 66,845
Bonds issued - - 405,900 11,329,100 - 11,735,000
Discount on bonds issued - - - (53,637) - (53,637)
Total other financing
sources (uses)(63,630) (5,420,606) 6,050,091 12,101,978 - 12,667,833
Net increase (decrease)
in fund balance 272,819 1,565,365 696,228 5,562,310 5,179 8,101,901
Fund balance - January 113,834,038 12,497,552 2,194,313 3,648,010 682,352 32,856,265
Fund balance - December 3114,106,857$ 14,062,917$ 2,890,541$ 9,210,320$ 687,531$ 40,958,166$
The accompanying notes are an integral part of these financial statements.
26
CITY OF EDINA, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2007
Amounts reported for governmental activities in the
statement of activities (page 22-23) are different because:
Net changes in fund balances - total governmental funds (page 27)8,101,901$
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.6,367,207
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.(109,218)
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.176,424
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.(5,419,143)
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 (349,562)
reported as expenditures in governmental funds.
Change in net assets of governmental activities (page 23)8,767,609$
The accompanying notes are an integral part of these financial statements.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2007
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Assets:
Current assets:
Cash and cash equivalents 3,884 125,589 690,538 1,361 182,226 1,003,598
Investments 6,044,579 - - - 4,156,959 10,201,538
Interest receivable 25,289 - - - 27,322 52,611
Accounts receivable, net 3,333,601 - - 565 147,976 3,482,142
Special assessments receivable206,800 - - - - 206,800
Due from other funds - 1,000,000 270,000 - - 1,270,000
Due from other governments 2,593 - - - - 2,593
Prepaid expenses 311,064 - - - - 311,064
Inventory 18,756 1,039,449 - 42,531 13,993 1,114,729
Total current assets 9,946,566 2,165,038 960,538 44,457 4,528,476 17,645,075
Noncurrent assets:
Deferred charges 50,506 - 2,128 3,130 1,391 57,155
Net capital assets 45,080,073 1,312,159 2,134,681 5,446,309 3,881,358 57,854,580
Total noncurrent assets 45,130,579 1,312,159 2,136,809 5,449,439 3,882,749 57,911,735
Total assets 55,077,145 3,477,197 3,097,347 5,493,896 8,411,225 75,556,810
Liabilities:
Current liabilities:
Accounts payable 557,234 225,546 253 51,812 129,191 964,036
Salaries payable 30,637 37,828 376 31,214 50,862 150,917
Accrued interest payable 237,973 - 22,485 45,714 6,997 313,169
Contracts payable 3,398 - - - - 3,398
Due to other funds 140,000 - - 1,130,000 - 1,270,000
Due to other governments 9,577 129,833 645 4,921 6,595 151,571
Deposits payable 112,216 - - 7,613 - 119,829
Unearned revenue - 3,619 - 32,884 54,958 91,461
Compensated absences payable 92,278 79,901 - 108,688 114,531 395,398
Bonds payable - current 1,485,000 - 115,000 510,000 220,000 2,330,000
Total current liabilities 2,668,313 476,727 138,759 1,922,846 583,134 5,789,779
Noncurrent liabilities:
Compensated absences payable138,417 119,851 - 163,033 171,795 593,096
Bonds payable, net of
unamortized discounts 9,648,350 - 958,392 1,647,533 224,145 12,478,420
Total noncurrent liabilities 9,786,767 119,851 958,392 1,810,566 395,940 13,071,516
Total liabilities 12,455,080 596,578 1,097,151 3,733,412 979,074 18,861,295
Net assets:
Invested in capital assets,
net of related debt33,946,723 1,312,159 1,061,289 3,288,776 3,437,213 43,046,160
Unrestricted 8,675,342 1,568,460 938,907 (1,528,292) 3,994,938 13,649,355
Total net assets 42,622,065$ 2,880,619$ 2,000,196$ 1,760,484$ 7,432,151$ 56,695,515$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
28
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
For The Year Ended December 31, 2007
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Operating revenues:
Sales - liquor-$ 11,436,175$ -$ 125,220$ -$ 11,561,395$
Sales - retail - - 1,812 256,249 53,782 311,843
Sales - utilities 12,956,834 - - - - 12,956,834
Sales - concessions - - 118,227 226,858 44,811 389,896
Memberships - - 454,709 106,040 81,541 642,290
Admissions - - 269,450 285,066 585,113 1,139,629
Building rental - - 20,355 79,776 1,382,192 1,482,323
Rental of equipment - - - 389,156 82,201 471,357
Greens fees - - - 1,794,940 171,987 1,966,927
Other fees 168,585 - 54 328,400 1,063,129 1,560,168
Total operating revenues 13,125,419 11,436,175 864,607 3,591,705 3,464,756 32,482,662
Operating expenses:
Cost of sales and services32,657 8,415,718 28,702 359,770 72,755 8,909,602
Personal services 1,471,846 1,240,553 256,413 1,735,381 1,858,551 6,562,744
Contractual services 5,528,275 400,792 121,238 551,889 1,286,276 7,888,470
Commodities 767,709 53,838 102,604 351,032 356,015 1,631,198
Central Services 479,058 177,902 27,970 106,407 165,529 956,866
Depreciation 1,456,294 73,195 197,503 420,689 413,003 2,560,684
Total operating expenses 9,735,839 10,361,998 734,430 3,525,168 4,152,129 28,509,564
Operating income (loss)3,389,580 1,074,177 130,177 66,537 (687,373) 3,973,098
Nonoperating revenues (expenses):
Intergovernmental107,575 - - - - 107,575
Investment income 209,106 - - - 301,572 510,678
Donations - - - - 19,917 19,917
Interest and fiscal charges (296,932) - (45,446) (92,470) (14,159) (449,007)
Amortization of bond discount (4,073) - (1,105) (4,339) (2,246) (11,763)
Gain (loss) on sale of
capital asset 4,553 - - 3,051 - 7,604
Miscellaneous 354 - 4,226 38,833 52,355 95,768
Total nonoperating
revenues (expenses)20,583 - (42,325) (54,925) 357,439 280,772
Income (loss) before transfers 3,410,163 1,074,177 87,852 11,612 (329,934) 4,253,870
Transfers:
Transfers in- - - - 241,575 241,575
Transfers out (100,000) (1,061,200) - - - (1,161,200)
Total transfers (100,000) (1,061,200) - - 241,575 (919,625)
Change in net assets 3,310,163 12,977 87,852 11,612 (88,359) 3,334,245
Net assets - January 1 39,311,902 2,867,642 1,912,344 1,748,872 7,520,510 53,361,270
Net assets - December 31 42,622,065$ 2,880,619$ 2,000,196$ 1,760,484$ 7,432,151$ 56,695,515$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2007
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Cash flows from operating activities:
Receipts from customers and users12,905,654$ 11,435,520$ 865,117$ 3,604,034$ 3,531,797$ 32,342,122$
Payment to suppliers (7,125,515) (9,053,865) (280,587) (1,369,654) (1,932,949) (19,762,570)
Payment to employees (1,437,913) (1,219,689) (256,356) (1,697,508) (1,830,247) (6,441,713)
Donations - - - - 19,917 19,917
Miscellaneous revenue 354 - 4,226 38,833 52,355 95,768
Net cash provided by
(used in) operating activities 4,342,580 1,161,966 332,400 575,705 (159,127) 6,253,524
Cash flows from noncapital financing activities:
State grant 107,575 - - - - 107,575
Transfer from other funds - - - - 241,575 241,575
Transfer to other funds (100,000) (1,061,200) - - - (1,161,200)
Proceeds from interfund borrowing140,000 1,025,000 800,000 1,130,000 - 3,095,000
Payment of interfund borrowing(1,425,000) (1,000,000) (270,000) (890,000) (60,000) (3,645,000)
Net cash provided by (used in)
noncapital financing activities(1,277,425) (1,036,200) 530,000 240,000 181,575 (1,362,050)
Cash flows from capital and related financing activities:
Proceeds from capital debt 8,244,309 - - - - 8,244,309
Acquisition of capital assets (4,968,721) (28,599) (14,950) (153,225) (192,170) (5,357,665)
Proceeds from sale
of capital assets 4,553 - - 17,400 - 21,953
Principal paid on bonds (690,000) - (115,000) (590,000) (200,000) (1,595,000)
Interest paid on bonds (108,840) - (47,538) (104,135) (16,486) (276,999)
Net cash provided by (used in)
capital and related
financing activities 2,481,301 (28,599) (177,488) (829,960) (408,656) 1,036,598
Cash flows from investing activities:
Proceeds from sale of investments(5,743,334) - - - - (5,743,334)
Purchase of investments- - - - 214,443 214,443
Investment income196,062 - - - 305,557 501,619
Net cash flows provided by
(used in) investing activities (5,547,272) - - - 520,000 (5,027,272)
Net increase (decrease)
in cash and cash equivalents (816) 97,167 684,912 (14,255) 133,792 900,800
Cash and cash equivalents -
January 1 4,700 28,422 5,626 15,616 48,434 102,798
Cash and cash equivalents -
December 31 3,884$ 125,589$ 690,538$ 1,361$ 182,226$ 1,003,598$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
30
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2007
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Business-type Activities - Enterprise Funds
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 3,389,580$ 1,074,177$ 130,177$ 66,537$ (687,373)$ 3,973,098$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 1,456,294 73,195 197,503 420,689 413,003 2,560,684
Donations - - - - 19,917 19,917
Miscellaneous revenue 354 - 4,226 38,833 52,355 95,768
Changes in assets and liabilities:
Decrease (increase) in receivables(180,333) - 510 474 66,191 (113,158)
Decrease (increase) in
special assessments (38,526) - - - - (38,526)
Decrease (increase) in
due from other governments (906) - - - - (906)
Decrease (increase) in inventory(13,417) 396 - 8,878 1,872 (2,271)
Decrease (increase) in
prepaid items (311,064) - - - - (311,064)
Increase (decrease) in
accounts payable 45,418 (15,509) (192) (12,706) (55,480) (38,469)
Increase (decrease) in
salaries payable 12,449 7,920 57 11,713 18,913 51,052
Increase (decrease) in
contracts payable (143,251) - - - - (143,251)
Increase (decrease) in
due to other governments 7,963 9,498 119 (558) 1,234 18,256
Increase (decrease) in deposits 96,535 - - 3,830 - 100,365
Increase (decrease) in
unearned revenue - (655) - 11,855 850 12,050
Increase (decrease) in
compensated absences 21,484 12,944 - 26,160 9,391 69,979
Total adjustments 953,000 87,789 202,223 509,168 528,246 2,280,426
Net cash provided by
(used in) operating activities 4,342,580$ 1,161,966$ 332,400$ 575,705$ (159,127)$ 6,253,524$
The accompanying notes are an integral part of these financial statements.
31
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET ASSETS
AGENCY FUNDS
December 31, 2007
Agency Funds
Assets
Cash 462,083$
Investments 295,000
Total assets 757,083$
Liabilities
Accounts payable 61,042$
Salaries payable 1,593
Due to other governmental units 694,448
Total liabilities 757,083$
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
33
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Edina (the City) was incorporated in 1888 and operates under the State of Minnesota
Statutory Plan B form of government. The governing body consists of a five-member City Council
elected by voters of the City.
The financial statements of the City have been prepared in conformity with 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
34
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
35
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.
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).
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
36
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
37
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 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.
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, 2007 are planned to be eliminated in 2008. 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
38
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.
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
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
39
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
40
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
41
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
42
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. PRIOR PERIOD ADJUSTMENT
The Governmental 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.
During 2007, the City discovered an error in the infrastructure inventory. As a result of
this error, the previously reported governmental activities net assets as of December 31,
2006 reconcile to the governmental net assets, as restated in the current report, as
follows:
Governmental activities net assets, previously reported 85,094,070$
Historical cost of infrastructure removed (1,086,369)
Accumulated depreciation on removed assets 41,884
Governmental activities net assets, as restated84,049,585$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
43
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 payable 49,215,000$
Plus: issuance premium 48,213
Less: issuance discount (284,850)
Less: deferred charge for issuance costs (280,756)
Accrued interest payable 845,742
Compensated absences 3,262,512
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities52,805,861$
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 outlay 11,054,853$
Depreciation expense (4,687,646)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental funds6,367,207$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
44
Another element of that reconciliation states that “The issuance of long-term debt
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.” The details of this difference are as follows:
Debt issued or incurred:
Issuance of general obligation bonds 5,865,000$
Issuance of PIR bonds 5,870,000
Less issuance costs (72,220)
Less discounts (53,637)
Principal repayments:
Tax increment debt (4,795,000)
General obligation debt (545,000)
Permanent improvement revolving debt (160,000)
Public project revenue debt (690,000)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities5,419,143$
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 (67,479)$
Accrued interest (189,901)
Amortization of issuance costs (60,390)
Amortization of bond discounts (31,792)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities(349,562)$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
45
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits1,983,163$
Cash on hand17,485
Investments53,522,278
55,522,926$
Cash and investments are presented in the financial statements as follows:
Cash and cash equivalents - Statement of Net Assets1,538,565$
Investments - Statement of Net Assets50,411,761
Restricted investments - Statement of Net Assets2,815,517
Cash and investments - Statement of Fiduciary Net Assets757,083
55,522,926$
The City had restricted investments of $2,815,517 as of December 31, 2007 that
represent unspent bond proceeds to be used for fire station reconstruction.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
46
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 $1,983,163 while the
balance on the bank records was $1,259,350. At December 31, 2007, all
deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 5 to 10 10 +Total
U.S. TreasuriesN/AN/A -$ -$ 585,591$ 601,397$ 1,186,988$
GNMA N/AN/A - - - 50,158 50,158
SBA Notes N/RN/A - - 170,062 565,805 735,867
U.S. AgenciesA1+/F1+S&P/Mdy's3,976,200 - - - 3,976,200
U.S. AgenciesAAA/AaaS&P/Mdy's11,636,446 2,737,825 476,487 4,124,798 18,975,556
Municipals A3/A+S&P/Mdy's/
BBBFitch 24,896 - - - 24,896
Municipals A1S&P - 10,178 - - 10,178
MunicipalsAA3/A+S&P/Mdy's24,689 9,719 10,058 - 44,466
MunicipalsAAA/AaaS&P/Mdy's29,955 84,474 70,091 - 184,520
CommercialA1/P1/S&P/Mdy's/
paper F1Fitch15,577,820 - - - 15,577,820
Negotiable CD'sN/RN/A 665,962 191,871 - - 857,833
Interfund DebtN/RN/A - 1,400,000 - - 1,400,000
31,935,968$ 4,434,067$ 1,312,289$ 5,342,158$ 43,024,482
Money Market*AAAS&P 4,586,957
4M Fund*N/RN/A 5,910,839
Total investments 53,522,278$
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
The Minnesota Municipal Money Market Fund (4M Fund) is regulated by Minnesota
Statutes and the Board of Directors of the League of Minnesota Cities. The 4M Fund is
an unrated 2a7-like pool and the fair value of the position in the pool is the same as the
value of pool shares.
Investments are subject to various risks, the following of which are considered the most
significant:
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
47
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.
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 $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 5.72% and 32.27% in securities issued by FHLMC and FNMA,
respectively.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
48
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2007 is as follows:
Beginning
Balance,Ending
As Restated Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land15,823,833$ 48,531$ -$ 15,872,364$
Investment in joint venture 1,452,465 - - 1,452,465
Construction in progress 8,028,828 10,183,100 (2,831,163) 15,380,765
Total capital assets not being depreciated25,305,126 10,231,631 (2,831,163) 32,705,594
Capital assets being depreciated:
Land improvements 21,717,062 - (17,300) 21,699,762
Buildings and structures 30,413,428 - (404,491) 30,008,937
Furniture and office equipment 2,580,479 72,045 (46,362) 2,606,162
Vehicles and equipment 12,860,266 1,156,939 (482,049) 13,535,156
Infrastructure 61,880,630 1,245,633 - 63,126,263
Parks 11,699,924 1,179,768 (171,363) 12,708,329
Total capital assets being depreciated141,151,789 3,654,385 (1,121,565) 143,684,609
Less accumulated depreciation for:
Land improvements (9,946,125) (836,781) 6,058 (10,776,848)
Buildings and structures (8,398,518) (804,069) 331,077 (8,871,510)
Furniture and office equipment (916,519) (195,412) 44,229 (1,067,702)
Vehicles and equipment (5,989,452) (1,117,229) 471,500 (6,635,181)
Infrastructure (42,240,385) (1,303,031) - (43,543,416)
Parks (5,483,928) (431,124) 159,483 (5,755,569)
Total accumulated depreciation(72,974,927) (4,687,646) 1,012,347 (76,650,226)
Total capital assets being depreciated, net68,176,862 (1,033,261) (109,218) 67,034,383
Governmental activities capital assets, net93,481,988$ 9,198,370$ (2,940,381)$ 99,739,977$
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 retroactively added
historical costs for streets and right-of-way in this schedule as of January 1, 2006. During 2007
the City discovered an error in the 2006 schedule. The previously reported capital assets
historical cost was decreased by $1,086,369 and accumulated depreciation was decreased by
$41,884 for a net total of $1,044,485 to correct this error.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
49
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress 5,826,192 4,866,025 (6,112,090) 4,580,127
Total capital assets not being depreciated 6,915,157 4,866,025 (6,112,090) 5,669,092
Capital assets being depreciated:
Land improvements & golf course8,120,479 - - 8,120,479
Buildings and structures 15,907,033 107,915 (15,498) 15,999,450
Furniture and office equipment 149,436 - - 149,436
Vehicles and equipment 4,884,478 383,726 (75,454) 5,192,750
Utility infrastructure 58,301,002 6,112,090 - 64,413,092
Lease property capital lease 468,580 - - 468,580
Total capital assets being depreciated87,831,008 6,603,731 (90,952) 94,343,787
Less accumulated depreciation for:
Land improvements & golf course (3,771,575) (306,775) - (4,078,350)
Buildings and structures (8,600,277) (599,386) 15,498 (9,184,165)
Furniture and office equipment (107,160) (17,893) - (125,053)
Vehicles and equipment (2,629,498) (355,682) 61,104 (2,924,076)
Utility infrastructure (24,097,127) (1,280,948) - (25,378,075)
Lease property capital lease (468,580) - - (468,580)
Total accumulated depreciation (39,674,217) (2,560,684) 76,602 (42,158,299)
Total capital assets being depreciated, net48,156,791 4,043,047 (14,350) 52,185,488
Business-type activities capital assets, net55,071,948$ 8,909,072$ (6,126,440)$ 57,854,580$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
50
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 487,363$
Public safety 617,443
Public works 2,038,523
Parks 1,544,317
Total depreciation expense - governmental activities4,687,646$
Business-type activities:
Utilities 1,456,294$
Liquor 73,195
Aquatic Center 197,503
Golf Course 420,689
Arena 292,720
Art Center 30,822
Edinborough Park/Centennial Lakes 89,461
Total depreciation expense - business-type activities2,560,684$
CONSTRUCTION COMMITMENTS
At December 31, 2007, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
ContractRemaining
Project #Project Description AmountCommitment
N/AFire Station #1 Reconstruction 4,557,257$ 1,893,405$
05-6 EngStreet/Sidewalk Reconstruction 48,706 1,247
07-5 EngStreet/Sidewalk Reconstruction1,334,468 193,716
07-6 EngStreet/Sidewalk Reconstruction 33,021 3,110
07-11 EngStreet/Sidewalk Reconstruction 95,954 89,304
07-4 PWNew Well 297,890 229,940
2,410,722$
Note 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2007: 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 Redevelopment Authority and the City. The fifth type is
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
51
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, 2007, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/07
Tax Increment Bonds:
Tax Increment Bonds, Series 2000A4.30-4.809/6/20002/1/20112,620,000$ 1,200,000$
Tax Increment Bonds, Series 2002B 3.00%8/5/20022/1/20091,400,000 1,400,000
Tax Increment Refunding Bonds,
Series 2005B 3.00%7/19/20052/1/200910,520,000 6,320,000
Tax Increment Taxable Refunding
Bonds, Series 2005C 3.75-4.257/19/20052/1/20096,220,000 3,700,000
Tax Increment Refunding Bonds,
Series 2005D 3.00-3.407/19/20052/1/20133,505,000 3,045,000
Total Tax Increment Bonds24,265,000 15,665,000
General Obligation Bonds:
General Obligation Equipment
Certificates, Series 2003A 1.05-2.043/1/20032/1/20081,540,000 150,000
General Obligation - Park &
Recreation Refunding, 2005A 3.50-4.007/19/20052/1/20175,375,000 4,975,000
General Obligation - Capital
Improvement Plan, 2007A 4.00-4.255/24/20072/1/20285,865,000 5,865,000
Total General Obligation Bonds12,780,000 10,990,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement
Revolving, 2005E 3.00-3.759/13/20052/1/20161,460,000 1,300,000
Permanent Improvement
Revolving, 2007C 3.60-4.005/24/20072/1/20195,870,000 5,870,000
Total PIR Bonds 7,330,000 7,170,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2002 4.00-5.251/1/20022/1/202112,410,000 10,150,000
Public Project Revenue, Series 2005 3.50-4.139/13/20055/1/20265,425,000 5,240,000
Total Public Project Revenue Bonds17,835,000 15,390,000
Total bonded indebtedness - governmental activities62,210,000$ 49,215,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
52
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/07
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70-4.455/3/19991/1/20133,270,000$ 1,970,000$
Recreational Facility Bonds, Series 2001A2.25-4.6511/1/20011/1/20174,620,000 1,720,000
Utility Revenue Bonds, Series 1999A 3.20-4.205/3/19992/1/20093,600,000 825,000
Utility Revenue Bonds, Series 2003C 1.10-3.553/1/20032/1/20133,200,000 2,035,000
Utility Revenue Bonds, Series 2007B4.00%5/24/20072/1/20178,210,000 8,210,000
Total Revenue Bonds22,900,000 14,760,000
Total bonded indebtedness - business-type activities 22,900,000$ 14,760,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2008 5,650,000$ 445,694$ 570,000$ 463,001$ 155,000$ 306,759$
2009 5,890,000 244,236 630,000 397,869 150,000 260,449
2010 805,000 125,820 660,000 374,294 655,000 246,484
2011 840,000 94,359 680,000 349,806 675,000 222,975
2012 1,930,000 48,445 705,000 324,494 700,000 198,050
2013-2017 550,000 9,350 3,960,000 1,184,163 3,640,000 584,604
2018-2022 - - 1,515,000 631,820 1,195,000 45,300
2023-2027 - - 1,850,000 290,153 - -
2028 - - 420,000 8,925 - -
Total 15,665,000$ 967,904$ 10,990,000$ 4,024,525$ 7,170,000$ 1,864,621$
Principal Interest Principal Interest
2008 715,000$ 696,118$ 2,330,000$ 595,939$
2009 745,000 665,193 2,300,000 447,143
2010 780,000 632,880 1,445,000 375,095
2011 810,000 598,880 1,510,000 317,724
2012 850,000 561,885 1,575,000 256,961
2013-2017 4,860,000 2,157,495 5,600,000 522,575
2018-2022 5,155,000 852,916 - -
2023-2027 1,475,000 125,091 - -
Total15,390,000$ 6,290,458$ 14,760,000$ 2,515,437$
Year Ending
December 31
Year Ending
December 31
Increment Bonds Obligation Bonds Revolving Bonds
Governmental Activities
General Public ImprovementTax
Public Project Revenue
Business-type Activities
Bonds
Governmental Activities
Revenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
53
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2007, was as follows:
Beginning EndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment20,460,000$ -$ (4,795,000)$ 15,665,000$ 5,650,000$
General obligation 5,670,000 5,865,000 (545,000) 10,990,000 570,000
PIR 1,460,000 5,870,000 (160,000) 7,170,000 155,000
Public project revenue 16,080,000 - (690,000) 15,390,000 715,000
Less deferred amounts:
Discount on bonds (276,290) (53,637) 45,077 (284,850) -
Premiums 61,498 - (13,285) 48,213 -
Total bonds payable43,455,208 11,681,363 (6,158,208) 48,978,363 7,090,000
Compensated absences3,195,033 1,534,369 (1,466,890) 3,262,512 1,305,005
Governmental activity
Long-term liabilities46,650,241$ 13,215,732$ (7,625,098)$ 52,240,875$ 8,395,005$
Business-type activities:
Bonds payable:
Revenue bonds8,145,000 8,210,000 (1,595,000) 14,760,000 2,330,000
Less deferred amounts:
Discount on bonds(33,789) - 8,143 (25,646) -
Premiums - 78,823 (4,757) 74,066 -
Total bonds payable 8,111,211 8,288,823 (1,591,614) 14,808,420 2,330,000
Compensated absences 918,515 336,839 (266,860) 988,494 395,398
Business-type activity
Long-term liabilities9,029,726$ 8,625,662$ (1,858,474)$ 15,796,914$ 2,725,398$
For governmental activities, compensated absences are generally liquidated by the general
fund.
The City issued $5,865,000 of General Obligation Capital Improvement Plan (CIP) bonds,
Series 2007A to provide financing for the reconstruction of Fire Station #1 on Tracy Avenue.
These bonds will be repaid with property taxes.
The City also issued $8,210,000 of General Obligation Revenue bonds, Series 2007B to
finance various utility infrastructure improvement projects. The City anticipates that utility
revenues will be sufficient to pay future debt service on this issue.
The City also issued $5,870,000 of General Obligation Permanent Improvement Revolving
(PIR) bonds, Series 2007C to provide financing for infrastructure improvements. The City
anticipates that special assessments to benefitted properties will be sufficient to pay future
debt service on this issue.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
54
Note 6 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness
payable principally from property taxes. The City of Edina's legal debt margin for 2007 is
computed as follows:
December 31, 2007
Market Value (after fiscal disparities)9,988,737,500$
Debt Limit (2% of Market Value)199,774,750$
Amount of debt applicable to debt limit:
Total bonded debt63,975,000$
Less:
Tax increment bonds(15,665,000)
Public improvement revolving bonds(7,170,000)
Public project revenue bonds(15,390,000)
Revenue bonds(14,760,000)
Fund balance in related Debt Service Funds(2,890,541)
Total debt applicable to debt limit8,099,459$
Legal debt margin191,675,291$
Note 7 DEFINED BENEFIT PENSION PLANS - STATEWIDE
A. PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Edina are covered by defined
benefit plans administered by the Public Employees Retirement Association of Minnesota
(PERA). PERA administers the Public Employees Retirement Fund (PERF) and the
Public Employees Police and Fire Fund (PEPFF) which are cost-sharing, multiple-
employer retirement plans. These plans are established and administered in accordance
with Minnesota Statute, Chapters 353 and 356.
PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated
Plan members are covered by Social Security and Basic Plan members are not. All new
members must participate in the Coordinated Plan. All police officers, firefighters and
peace officers who qualify for membership by statute are covered by the PEPFF.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
55
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, 2007
56
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
These statutes are established and amended by the state legislature. The City makes
annual contributions to the pension plans equal to the amount required by state statutes.
PERF Basic Plan members and Coordinated Plan members were required to contribute
9.10% and 5.75%, respectively, of their covered salary in 2007. Contribution rates in the
Coordinated Plan will increase in 2008 to 6.0%. PEPFF members were required to
contribute 7.8% of their covered salary in 2007. That rate will increase to 8.6% in 2008.
The City of Edina is required to contribute the following percentages of annual covered
payroll: 11.78% for Basic Plan PERF members, 6.25% for Coordinated Plan PERF
members, and 11.7% for PEPFF members. Employer contribution rates for the
Coordinated Plan and PEPFF will increase to 6.5% and 12.9% respectively, effective
January 1, 2008. The City’s contributions to the Public Employees Retirement Fund for
the years ending December 31, 2007, 2006, and 2005 were $785,482, $696,014, and
$619,212, respectively. The City’s contributions to the Public Employees Police and Fire
Fund for the years ending December 31, 2007, 2006, and 2005 were $738,399,
$632,892, and $539,000, respectively. The City’s contributions were equal to the
contractually required contributions for each year as set by state statute.
Note 8 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of internal balances as of December 31, 2007, is as follows:
Payable Fund Amount
General CDBG 135,000$
Communication 50,000
Debt Service Construction 345,000
General 200,000
HRA General 29,521
Liquor Golf Course 1,000,000
Aquatic Center Utilities 140,000
Golf Course 130,000
Total 2,029,521$
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, 2007
57
Debt Nonmajor
General Service Construction Business-type Total
Transfer out:
General Fund -$ 150,100$ 700,000$ 1,575$ 851,675$
HRA Fund - 5,420,606 - - 5,420,606
Construction Fund - 73,485 - 25,000 98,485
Utilities Fund - - 100,000 - 100,000
Liquor Fund 721,200 - 125,000 215,000 1,061,200
721,200$ 5,644,191$ 925,000$ 241,575$ 7,531,966$
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 $721,200, $135,000, and $80,000 to the general fund, art
center, and arena funds, respectively, to subsidize operations.
2. The construction fund transferred $25,000 to the arena fund to subsidize capital
improvements to that facility.
3. The HRA fund transferred $5,420,606 of tax increment revenues to the debt service fund
to pay principal and interest on outstanding tax increment debt.
4. The general fund transferred $50,000 to the construction fund to fund the capital
improvement program, as planned in the 2007 budget.
5. The general fund transferred $150,100 to the debt service fund to pay the final year’s
debt service on the City’s equipment certificates, as planned in the 2007 budget.
6. The general fund transferred $650,000 of the 2006 unreserved and undesignated fund
balance to the construction fund according to the City’s fund balance policies for the
following purposes: $10,000 for public art, $165,000 for the City’s share of special
assessments in the Todd Park area, and $475,000 to fund the capital improvement
program.
Note 9 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1200 (50th and France Commercial Area) is a redevelopment district established
in 1974 pursuant to Minnesota Statutes with a termination date of 2009.
District number 1201 (Southeast Edina Redevelopment District – Edinborough) is a
redevelopment district established in 1977 pursuant to Minnesota Statutes with a termination
date of 2009.
District number 1202 (Grandview Commercial Area) is a redevelopment district established in
1984 pursuant to Minnesota Statutes with a termination date of 2010.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
58
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a
redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination
date of 2016.
District number 1207 (70th and Cahill Economic Development District) is an economic district
established in 1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment
previously collected is available for expenditures within the larger development district that
includes the Wooddale – Valley View commercial area. Tax capacity and debt for this district is
not included in the following schedule as county reports no longer indicate captured tax capacity
for this district and no debt is outstanding.
The following table reflects values as of December 31, 2007:
TIF #1200TIF #1201TIF #1202TIF #1203 Total
Original tax capacity 112,826$ 94,319$ 164,885$ 229,691$ 601,721$
Current tax capacity 1,333,571 3,134,558 1,461,873 3,443,670 9,373,672
Tax capacity change 1,220,745 3,040,239 1,296,988 3,213,979 8,771,951
Captured tax capacity value:
Retained captured tax capacity 1,220,745$ 3,040,239$ 1,296,988$ 3,213,979$ 8,771,951$
Total bonds issued
(general obligation)5,360,000$ 22,445,000$ 9,637,555$ 35,894,724$ 73,337,279$
Amounts redeemed 5,360,000 22,445,000 7,037,555 22,829,724 57,672,279
Outstanding bonds at
December 31, 2007 -$ -$ 2,600,000$ 13,065,000$ 15,665,000$
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
59
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 2007.
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, 2007.
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, 2007, the City of Edina had 4 series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $32,160,000. The bonds are payable
solely from revenues of the respective organizations and do not constitute an indebtedness of the
City, and are not a charge against its general credit or taxing power. Accordingly, the bonds are
not reported as liabilities in the accompanying financial statements.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
60
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, 2007,
the City paid a total of $35,044 in membership fees to the PSTF.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
61
Note 14 DESIGNATIONS AND RESERVATIONS OF FUND BALANCE
At December 31, 2007 the City had designated and reserved portions of its various fund
balances through legal restriction and City Council authorization. A summary of such
designations is as follows:
December 31, 2007
General Fund:
Reserved for prepaid items28,637$
Designated for park dedication178,295
Designated for investments63,757
Designated for equipment replacement2,523,219
Designated for compensated absences1,305,005
Designated for cash flow9,108,632
Debt Service Fund:
Reserved for debt service2,890,541
Construction Fund:
Reserved for encumbrances2,180,782
Reserved for special projects254,104
Reserved for fire station construction922,112
Designated for Todd Park assessments165,000
Designated for capital improvements5,688,322
25,308,406$
62
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CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2007
Variance with
2007 Final Budget -
Actual Over
Original Final Amounts (Under)
Revenues:
General property taxes:
Current 19,024,386$ 19,024,386$ 19,362,280$ 337,894$
Penalties and interest 15,000 15,000 17,431 2,431
Total general property taxes 19,039,386 19,039,386 19,379,711 340,325
Licenses and permits:2,559,250 2,559,250 2,877,058 317,808
Intergovernmental:
Federal:35,000 35,000 118,395 83,395
State:
Municipal state aid 195,000 195,000 195,000 -
Other 50,000 50,000 134,038 84,038
State aid - police 330,000 330,000 362,190 32,190
Health programs 120,000 120,000 121,217 1,217
Total intergovernmental 730,000 730,000 930,840 200,840
Charges for services:
Building Department 3,300 3,300 4,383 1,083
City Clerk 5,000 5,000 12,430 7,430
Fire Department 26,500 26,500 42,296 15,796
Ambulance fees 1,380,000 1,380,000 1,464,093 84,093
Police Department 230,000 230,000 263,056 33,056
Engineering 135,500 135,500 191,768 56,268
Health Department 6,000 6,000 7,265 1,265
Planning Department 24,000 24,000 23,356 (644)
Housing Foundation Contract 30,000 30,000 28,821 (1,179)
HRA Services 20,000 20,000 27,560 7,560
Park Registration 82,000 82,000 94,066 12,066
Senior Center 100,000 100,000 94,751 (5,249)
Other fees 5,000 5,000 3,139 (1,861)
50th & France Assessment 69,000 69,000 69,000 -
Charges to other funds 349,930 349,930 359,568 9,638
Total charges for services 2,466,230 2,466,230 2,685,552 219,322
Fines and forfeits 875,000 875,000 971,486 96,486
Miscellaneous:
Rental of property 290,000 290,000 355,143 65,143
Investment income 200,000 200,000 428,796 228,796
Donations 5,000 5,000 32,977 27,977
Other 5,000 5,000 55,525 50,525
Total miscellaneous 500,000 500,000 872,441 372,441
Total revenues 26,169,866 26,169,866 27,717,088 1,547,222
Budgeted Amounts
63
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2007
Variance with
2007Final Budget -
ActualUnder
Original Final Amounts (Over)
Expenditures:
General government:
Mayor and Council:
Current:
Personal services 31,337$ 43,887$ 44,070$ (183)$
Contractual services 11,944 11,944 9,375 2,569
Commodities 1,133 1,133 2,057 (924)
Central services 31,176 31,176 30,026 1,150
Total mayor and council 75,590 88,140 85,528 2,612
Administration:
Current:
Personal services 824,997 824,997 783,127 41,870
Contractual services 148,320 148,320 129,843 18,477
Commodities 3,193 3,193 953 2,240
Central services 68,616 68,616 64,181 4,435
Total current 1,045,126 1,045,126 978,104 67,022
Capital outlay 6,176 6,176 11,588 (5,412)
Total administration 1,051,302 1,051,302 989,692 61,610
Planning:
Current:
Personal services 334,581 334,581 400,432 (65,851)
Contractual services 160,655 160,655 174,432 (13,777)
Commodities 1,700 1,700 1,104 596
Central services 46,068 46,068 43,170 2,898
Total current 543,004 543,004 619,138 (76,134)
Capital outlay 1,855 1,855 1,066 789
Total planning 544,859 544,859 620,204 (75,345)
Finance:
Current:
Personal services 470,775 470,775 475,951 (5,176)
Contractual services 100,600 100,600 93,677 6,923
Commodities 2,100 2,100 2,696 (596)
Central services 57,948 57,948 53,816 4,132
Total current 631,423 631,423 626,140 5,283
Capital outlay 6,160 6,160 2,466 3,694
Total finance 637,583 637,583 628,606 8,977
Election:
Current:
Personal services 131,974 131,974 107,519 24,455
Contractual services 29,276 29,276 18,753 10,523
Commodities 8,600 8,600 7,452 1,148
Central services 19,656 19,656 17,613 2,043
Total election 189,506 189,506 151,337 38,169
Budgeted Amounts
64
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2007
Variance with
2007Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Assessing:
Current:
Personal services615,286$ 615,286$ 611,595$ 3,691$
Contractual services 105,444 105,444 83,528 21,916
Commodities 2,600 2,600 1,317 1,283
Central services 67,500 67,500 63,362 4,138
Total current 790,830 790,830 759,802 31,028
Capital outlay 12,695 12,695 1,272 11,423
Total assessing 803,525 803,525 761,074 42,451
Legal and court services:
Current:
Contractual services 338,450 338,450 299,566 38,884
Contingencies:
Current:
Contractual services 123,200 110,650 231,779 (121,129)
Commodities - - 1,562 (1,562)
Total contingencies 123,200 110,650 233,341 (122,691)
City's share of special assessment:
Current:
Contractual services 30,000 30,000 34,792 (4,792)
Human Rights Commission:
Current:
Contractual services 88,152 88,152 87,020 1,132
Suburban Rate Authority:
Current:
Contractual services 4,000 4,000 4,000 -
Edina Resource Center
Current:
Contractual services 35,061 35,061 35,061 -
Human Services Planning & Coordination
Current:
Contractual services 11,641 11,641 - 11,641
Records management:
Current:
Contractual services 27,810 27,810 - 27,810
Employee programs
Current:
Personal services 120,000 120,000 238,721 (118,721)
Contractual services 16,124 16,124 17,166 (1,042)
Total employee programs 136,124 136,124 255,887 (119,763)
Dial-a-Ride:
Current:
Contractual services 23,690 23,690 36,956 (13,266)
Total general government 4,120,493 4,120,493 4,223,064 (102,571)
65
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2007
Variance with
2007Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Public safety:
Police protection:
Current:
Personal services5,881,446$ 5,881,446$ 5,945,814$ (64,368)$
Contractual services 350,614 350,614 260,301 90,313
Commodities 72,751 72,751 58,742 14,009
Central services 872,064 872,064 872,455 (391)
Total current 7,176,875 7,176,875 7,137,312 39,563
Capital outlay 257,799 257,799 299,355 (41,556)
Total police protection 7,434,674 7,434,674 7,436,667 (1,993)
Fire protection:
Current:
Personal services 3,448,307 3,448,307 3,449,189 (882)
Contractual services 285,096 285,096 307,024 (21,928)
Commodities 141,100 141,100 151,175 (10,075)
Central services 292,944 292,944 288,202 4,742
Total current 4,167,447 4,167,447 4,195,590 (28,143)
Capital outlay 195,385 195,385 256,738 (61,353)
Total fire protection 4,362,832 4,362,832 4,452,328 (89,496)
Civil defense:
Current:
Personal services 35,719 35,719 35,719 -
Contractual services 9,497 9,497 10,343 (846)
Commodities 11,416 11,416 - 11,416
Total current 56,632 56,632 46,062 10,570
Capital outlay 5,517 5,517 2,160 3,357
Total civil defense 62,149 62,149 48,222 13,927
Animal Control:
Current:
Personal services 62,312 62,312 64,708 (2,396)
Contractual services 8,331 8,331 17,238 (8,907)
Commodities 4,052 4,052 504 3,548
Central services 9,396 9,396 9,061 335
Total current 84,091 84,091 91,511 (7,420)
Capital outlay 7,315 7,315 - 7,315
Total animal control 91,406 91,406 91,511 (105)
Public health:
Current:
Personal services 270,376 270,376 232,250 38,126
Contractual services 184,905 184,905 181,054 3,851
Commodities 1,325 1,325 1,754 (429)
Central services 34,572 34,572 32,638 1,934
Total current 491,178 491,178 447,696 43,482
Capital outlay 5,516 5,516 - 5,516
Total public health 496,694 496,694 447,696 48,998
66
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2007
Variance with
2007Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Inspections:
Current:
Personal services727,414$ 727,414$ 805,191$ (77,777)$
Contractual services 89,489 89,489 62,280 27,209
Commodities 7,393 7,393 7,187 206
Central services 84,156 84,156 80,950 3,206
Total current 908,452 908,452 955,608 (47,156)
Capital outlay 33,452 33,452 42,695 (9,243)
Total inspections 941,904 941,904 998,303 (56,399)
Total public safety 13,389,659 13,389,659 13,474,727 (85,068)
Public works:
Administration:
Current:
Personal services 169,253 169,253 165,629 3,624
Contractual services 5,750 5,750 5,583 167
Commodities 500 500 - 500
Central services 25,884 25,884 24,043 1,841
Total administration 201,387 201,387 195,255 6,132
Engineering:
Current:
Personal services 668,124 668,124 683,269 (15,145)
Contractual services 272,000 272,000 200,371 71,629
Commodities 18,100 18,100 12,898 5,202
Central services 93,132 93,132 89,343 3,789
Total current 1,051,356 1,051,356 985,881 65,475
Capital outlay 49,596 49,596 15,224 34,372
Total engineering 1,100,952 1,100,952 1,001,105 99,847
Supervision and overhead:
Current:
Personal services 196,364 196,364 174,028 22,336
Contractual services 31,400 31,400 32,547 (1,147)
Commodities 300 300 510 (210)
Central services 180,456 180,456 172,090 8,366
Total supervision and overhead 408,520 408,520 379,175 29,345
Street maintenance:
Current:
Personal services 1,807,204 1,807,204 1,825,834 (18,630)
Contractual services 684,683 684,683 667,642 17,041
Commodities 828,730 828,730 845,510 (16,780)
Central services 585,588 585,588 620,233 (34,645)
Total current 3,906,205 3,906,205 3,959,219 (53,014)
Capital outlay 504,324 504,324 647,572 (143,248)
Total street maintenance 4,410,529 4,410,529 4,606,791 (196,262)
Total public works 6,121,388 6,121,388 6,182,326 (60,938)
67
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2007
Variance with
2007Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Parks:
Administration:
Current:
Personal services606,956$ 606,956$ 571,892$ 35,064$
Contractual services 32,034 32,034 22,880 9,154
Commodities 3,399 3,399 9,382 (5,983)
Central services 71,040 71,040 65,869 5,171
Total current 713,429 713,429 670,023 43,406
Capital outlay 6,882 6,882 4,663 2,219
Total administration 720,311 720,311 674,686 45,625
Recreation:
Current:
Personal services 191,680 191,680 165,409 26,271
Contractual services 165,053 165,053 174,893 (9,840)
Commodities 45,268 45,268 43,623 1,645
Total recreation 402,001 402,001 383,925 18,076
Maintenance:
Current:
Personal services 1,465,038 1,465,038 1,515,877 (50,839)
Contractual services 356,191 356,191 315,154 41,037
Commodities 188,161 188,161 181,686 6,475
Central services 300,096 300,096 310,074 (9,978)
Total current 2,309,486 2,309,486 2,322,791 (13,305)
Capital outlay 117,978 117,978 100,936 17,042
Total maintenance 2,427,464 2,427,464 2,423,727 3,737
Deer control:
Current:
Personal services - - 10,322 (10,322)
Contractual services 9,750 9,750 7,862 1,888
Total deer control 9,750 9,750 18,184 (8,434)
Total parks 3,559,526 3,559,526 3,500,522 59,004
Total expenditures 27,191,066 27,191,066 27,380,639 (189,573)
Revenues over (under) expenditures (1,021,200) (1,021,200) 336,449 1,357,649
Other financing sources (uses):
Transfer from other funds 721,200 721,200 721,200 -
Transfer to other funds (200,100) (850,100) (851,675) (1,575)
Sale of capital assets 50,000 50,000 66,845 16,845
Total financing sources (uses)571,100 (78,900) (63,630) 15,270
Net increase (decrease) in fund balance (450,100)$ (1,100,100)$ 272,819 1,372,919$
Fund balance - January 1 13,834,038
Fund balance - December 31 14,106,857$
68
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2007
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, 2007
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.
Final Over
BudgetActualBudget
General Government:
Planning 544,859$ 620,204$ 75,345$
Contingencies 110,650 233,341 122,691
Special assessments30,000 34,792 4,792
Employee programs136,124 255,887 119,763
Dial-a-Ride 23,690 36,956 13,266
Public Safety:
Police protection 7,434,674 7,436,667 1,993
Fire protection 4,362,832 4,452,328 89,496
Animal Control 91,406 91,511 105
Inspections 941,904 998,303 56,399
Public Works:
Street maintenance4,410,529 4,606,791 196,262
Parks:
Deer control 9,750 18,184 8,434
Excess expenditures in the planning, contingencies, special assessments, dial-a-ride, animal control,
inspections, street maintenance 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 employee
programs department are by available general fund balance designated for compensated absences,
Excess expenditures in the inspections department are funded by greater than anticipated charges
for services and license and permit revenue.
Excess expenditures of $146,157 in the CDBG fund are due to timing differences between the grant
period and the City’s fiscal year. All CDBG expenditures are reimbursed by the County.
A Special Revenue Fund is used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
The following are nonmajor special revenue funds:
Community Development Block Grant Fund - This fund was established to
account for funds received under Title I of the Housing and Community
Development Act of 1974.
Communications Fund - This fund was established to account for funds received
from the franchise fee of the local cable television service.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
71
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2007
CommunityTotal Nonmajor
DevelopmentSpecial Revenue
Block GrantCommunicationFunds
Assets
Cash and cash equivalents 3,843$ 3,801$ 7,644$
Investments - 635,023 635,023
Accrued interest receivable - 4,174 4,174
Accounts receivable - 156,766 156,766
Due from other governments 215,758 - 215,758
Total assets 219,601$ 799,764$ 1,019,365$
Liabilities and Fund Balance
Liabilities:
Accounts payable 84,601$ 54,133$ 138,734$
Salaries payable - 4,185 4,185
Due to other funds 135,000 50,000 185,000
Unearned revenue - 3,915 3,915
Total liabilities 219,601 112,233 331,834
Fund balance:
Unreserved:
Undesignated - 687,531 687,531
Total fund balance - 687,531 687,531
Total liabilities and fund balance 219,601$ 799,764$ 1,019,365$
72
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2007
Community Total Nonmajor
Development Special Revenue
Block GrantCommunicationFunds
Revenues:
Franchise fees -$ 570,871$ 570,871$
Intergovernmental 314,351 - 314,351
Investment income - 43,659 43,659
Other - 66,073 66,073
Total revenues 314,351 680,603 994,954
Expenditures:
Current:
General government 314,351 675,424 989,775
Total expenditures 314,351 675,424 989,775
Net increase (decrease) in fund balance - 5,179 5,179
Fund balance - January 1 - 682,352 682,352
Fund balance - December 31 -$ 687,531$ 687,531$
73
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2007
Variance with
Final budget -
ActualOver
Original Final Amounts(Under)
Revenues:
Intergovernmental 167,594$ 167,594$ 314,351$ 146,757$
Total revenues 167,594 167,594 314,351 146,757
Expenditures:
Current:
General government 167,594 167,594 314,351 146,757
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
NONMAJOR PROPRIETARY FUNDS
December 31, 2007
Total Nonmajor
ArtEdinborough ParkProprietary
Arena CenterCentennial LakesFunds
Assets
Current assets:
Cash and cash equivalents 94,649$ 56,887$ 30,690$ 182,226$
Investments - - 4,156,959 4,156,959
Interest receivable - - 27,322 27,322
Accounts receivable 142,951 - 5,025 147,976
Inventory - 13,993 - 13,993
Total current assets 237,600 70,880 4,219,996 4,528,476
Noncurrent assets:
Deferred charges 1,391 - - 1,391
Net capital assets 2,788,463 291,316 801,579 3,881,358
Total noncurrent assets 2,789,854 291,316 801,579 3,882,749
Total assets 3,027,454 362,196 5,021,575 8,411,225
Liabilities:
Current liabilities:
Accounts payable 47,522 21,499 60,170 129,191
Salaries payable 14,982 4,249 31,631 50,862
Accrued interest payable 6,997 - - 6,997
Due to other governments 412 855 5,328 6,595
Unearned revenue - 5,519 49,439 54,958
Compensated absences payable 49,242 15,281 50,008 114,531
Bonds payable 220,000 - - 220,000
Total current liabilities 339,155 47,403 196,576 583,134
Noncurrent liabilities:
Compensated absences 73,862 22,922 75,011 171,795
Bonds payable, net 224,145 - - 224,145
Total noncurrent liabilities 298,007 22,922 75,011 395,940
Total liabilities 637,162 70,325 271,587 979,074
Net assets:
Invested in capital assets,
net of related debt 2,344,318 291,316 801,579 3,437,213
Unrestricted 45,974 555 3,948,409 3,994,938
Total net assets 2,390,292$ 291,871$ 4,749,988$ 7,432,151$
76
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2007
Total Nonmajor
Edinborough ParkProprietary
ArenaArt CenterCentennial LakesFunds
Operating revenues:
Sales - retail9,564$ 44,218$ -$ 53,782$
Sales - concessions - 1,773 43,038 44,811
Memberships 4,355 26,314 50,872 81,541
Admissions 109,010 - 476,103 585,113
Building rental 1,136,504 - 245,688 1,382,192
Rental of equipment 3,916 - 78,285 82,201
Greens fees - - 171,987 171,987
Class registration & other fees 150,824 424,675 487,630 1,063,129
Total operating revenues 1,414,173 496,980 1,553,603 3,464,756
Operating expenses:
Cost of sales and services 795 23,745 48,215 72,755
Personal services 569,364 209,616 1,079,571 1,858,551
Contractual services 578,895 281,338 426,043 1,286,276
Commodities 52,688 53,111 250,216 356,015
Central Services 43,945 38,122 83,462 165,529
Depreciation 292,720 30,822 89,461 413,003
Total operating expenses 1,538,407 636,754 1,976,968 4,152,129
Operating loss (124,234) (139,774) (423,365) (687,373)
Nonoperating revenues (expenses):
Investment income - - 301,572 301,572
Donations - 19,917 - 19,917
Interest and fiscal charges (14,159) - - (14,159)
Amortization of bond discount (2,246) - - (2,246)
Miscellaneous 26,709 - 25,646 52,355
Total nonoperating
revenues (expenses)10,304 19,917 327,218 357,439
Income (loss) before transfers (113,930) (119,857) (96,147) (329,934)
Transfers:
Transfers in 105,000 136,575 - 241,575
Total transfers 105,000 136,575 - 241,575
Change in net assets (8,930) 16,718 (96,147) (88,359)
Net assets - January 1 2,399,222 275,153 4,846,135 7,520,510
Net assets - December 31 2,390,292$ 291,871$ 4,749,988$ 7,432,151$
77
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2007
Total Nonmajor
ArtEdinborough ParkProprietary
Arena Center Centennial Lakes Funds
Cash flows from operating activities:
Receipts from customers and users 1,482,266$ 499,238$ 1,550,293$ 3,531,797$
Payment to suppliers (666,312) (399,573) (867,064) (1,932,949)
Payment to employees (561,369) (211,803) (1,057,075) (1,830,247)
Donations - 19,917 - 19,917
Miscellaneous revenue 26,709 - 25,646 52,355
Net cash provided by (used in)
operating activities 281,294 (92,221) (348,200) (159,127)
Cash flows from noncapital financing activities:
Transfer from other funds 105,000 136,575 - 241,575
Payment of interfund borrowing - - (60,000) (60,000)
Net cash provided by noncapital
financing activities 105,000 136,575 (60,000) 181,575
Cash flows from capital and related financing activities:
Acquisition of capital assets(105,625) - (86,545) (192,170)
Principal paid on bonds (200,000) - - (200,000)
Interest paid on bonds (16,486) - - (16,486)
Net cash used in capital and
related financing activities (322,111) - (86,545) (408,656)
Cash flows from investing activities:
Proceeds from sales of investments - - 214,443 214,443
Investment income - - 305,557 305,557
Net cash flows provided by (used in)investing activities - - 520,000 520,000
Net increase (decrease) in cash
and cash equivalents64,183 44,354 25,255 133,792
Cash and cash equivalents - January 1 30,466 12,533 5,435 48,434
Cash and cash equivalents - December 3194,649$ 56,887$ 30,690$ 182,226$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (124,234)$ (139,774)$ (423,365)$ (687,373)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation292,720 30,822 89,461 413,003
Donations- 19,917 - 19,917
Miscellaneous revenue 26,709 - 25,646 52,355
Changes in assets and liabilities:
Decrease (increase) in receivables 68,093 1,268 (3,170) 66,191
Decrease (increase) in inventory - 1,872 - 1,872
Increase (decrease) in accounts payable 9,892 (4,881) (60,491) (55,480)
Increase (decrease) in salaries payable 2,316 473 16,124 18,913
Increase (decrease) in due to
other governments 119 (248) 1,363 1,234
Increase (decrease) in unearned revenue - 990 (140) 850
Increase (decrease) in
compensated absences 5,679 (2,660) 6,372 9,391
Total adjustments 405,528 47,553 75,165 528,246
Net cash provided by (used in) operating activities 281,294$ (92,221)$ (348,200)$ (159,127)$
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 ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2007
Balance Balance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash 361,253$ 49,916$ -$ 411,169$
Liabilities:
Due to other governmental units 361,253$ 49,916$ -$ 411,169$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash 2,021$ 1,740$ -$ 3,761$
Investments 270,000 25,000 - 295,000
Total Assets 272,021$ 26,740$ -$ 298,761$
Liabilities:
Accounts payable 4,585$ 9,304$ -$ 13,889$
Salaries payable 1,607 - 14 1,593
Due to other governmental units 265,829 17,450 - 283,279
Total Liabilities 272,021$ 26,754$ 14$ 298,761$
PAYROLL
Assets:
Cash 179,565$ -$ 132,412$ 47,153$
Liabilities:
Accounts payable 43,630$ 3,523$ -$ 47,153$
Due to other governmental units 135,935 - 135,935 -
Total Liabilities 179,565$ 3,523$ 135,935$ 47,153$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash 542,839$ 51,656$ 132,412$ 462,083$
Investments 270,000 25,000 - 295,000
Total Assets 812,839$ 76,656$ 132,412$ 757,083$
Liabilities:
Accounts payable 48,215$ 12,827$ -$ 61,042$
Salaries payable 1,607 - 14 1,593
Due to other governmental units 763,017 67,366 135,935 694,448
Total Liabilities 812,839$ 80,193$ 135,949$ 757,083$
81
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82
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83
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2007
Final
InterestMaturityOriginal
RatesDateDateIssue Redeemed
Tax Increment Bonds:
Tax Increment Bonds, Series 2000A 4.30 - 4.8009/06/0002/01/112,620,000$ 1,155,000$
Tax Increment Bonds, Series 2002B 3.00%08/05/0202/01/091,400,000 -
Tax Increment Refunding Bonds, Series 2005B3.00%07/19/0502/01/0910,520,000 1,650,000
Tax Increment Taxable Refunding Bonds,
Series 2005C 3.75 - 4.2507/19/0502/01/096,220,000 1,000,000
Tax Increment Refunding Bonds, Series 2005D3.00 - 3.4007/19/0502/01/133,505,000 -
Total Tax Increment Bonds 24,265,000 3,805,000
General Obligation Bonds:
GO Equipment Certificates, Series 2003A1.05 - 2.4003/01/0302/01/081,540,000 1,245,000
GO Park & Recreation Refunding Bonds,
Series 2005A 3.50 - 4.0007/19/0502/01/175,375,000 -
GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/28 - -
Total General Obligation Bonds 6,915,000 1,245,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving,
Series 2005E 3.00 - 3.7509/13/0502/01/161,460,000 -
GO Permanent Improvement Revolving
Series 2007C 3.60 - 4.2505/24/0702/01/19 - -
Total PIR Bonds 1,460,000 -
Public Project Revenue Bonds:
Public Project Revenue, Series 2002 4.00 - 5.2501/01/0202/01/2112,410,000 1,755,000
Public Project Revenue, Series 2005 3.00 - 4.1309/13/0505/01/265,425,000 -
Total Public Project Revenue Bonds 17,835,000 1,755,000
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70 - 4.4505/03/9901/01/133,270,000 1,010,000
Recreational Facility Bonds, Series 2001A2.25 - 4.6511/01/0101/01/174,620,000 2,285,000
Utility Revenue Bonds, Series 1999A 3.20 - 4.2005/03/9902/01/093,600,000 2,385,000
Utility Revenue Bonds, Series 2003C 1.10 - 3.5503/01/0302/01/133,200,000 865,000
Utility Revenue Bonds, Series 2007B 4.00%05/24/0702/01/17 - -
Total Public Project Revenue Bonds 14,690,000 6,545,000
Total - Bonded indebtedness 65,165,000$ 13,350,000$
Prior Years
84
PrincipalInterestInterest
Outstanding PayableDueDuePayable
12/31/06 Issued Payments 12/31/07 In 2008 In 2008 to Maturity
1,465,000$ -$ 265,000$ 1,200,000$ 280,000$ 49,860$ 117,105$
1,400,000 - - 1,400,000 - 42,000 189,000
8,870,000 - 2,550,000 6,320,000 3,085,000 143,325 191,850
5,220,000 - 1,520,000 3,700,000 1,815,000 118,681 158,738
3,505,000 - 460,000 3,045,000 470,000 91,828 311,211
20,460,000 - 4,795,000 15,665,000 5,650,000 445,694 967,904
295,000 - 145,000 150,000 150,000 1,800 1,800
5,375,000 - 400,000 4,975,000 420,000 177,787 1,009,719
- 5,865,000 - 5,865,000 - 283,414 3,013,004
5,670,000 5,865,000 545,000 10,990,000 570,000 463,001 4,024,523
1,460,000 - 160,000 1,300,000 155,000 41,969 200,916
- 5,870,000 - 5,870,000 - 264,790 1,663,704
1,460,000 5,870,000 160,000 7,170,000 155,000 306,759 1,864,620
10,655,000 - 505,000 10,150,000 525,000 491,999 4,019,385
5,425,000 - 185,000 5,240,000 190,000 204,119 2,271,072
16,080,000 - 690,000 15,390,000 715,000 696,118 6,290,457
2,260,000 - 290,000 1,970,000 295,000 79,441 269,638
2,335,000 - 615,000 1,720,000 550,000 56,515 208,496
1,215,000 - 390,000 825,000 405,000 25,942 34,762
2,335,000 - 300,000 2,035,000 310,000 59,922 210,620
- 8,210,000 - 8,210,000 770,000 374,119 1,791,919
8,145,000 8,210,000 1,595,000 14,760,000 2,330,000 595,939 2,515,435
51,815,000$ 19,945,000$ 7,785,000$ 63,975,000$ 9,420,000$ 2,507,511$ 15,662,939$
2007
85
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2004 2005 2006 2007 2008
Total tax capacity 83,447,880$ 91,309,672$ 101,947,912$ 113,428,895$ 120,084,430$
Increment valuation (6,949,064) (7,330,826) (7,980,069) (8,771,951) (9,771,137)
Contribution to fiscal
disparities pool (7,945,664) (7,635,854) (7,107,862) (8,486,997) (9,358,999)
Tax capacity used
for rate calculation 68,553,152 76,342,992 86,859,981 96,169,947 100,954,294
Fiscal disparities distribution2,202,656 2,374,371 2,411,937 2,595,376 2,895,523
Adjusted net tax capacity70,755,808$ 78,717,363$ 89,271,918$ 98,765,323$ 103,849,817$
Tax levies:
General fund 16,489,129$ 17,772,350$ 18,560,151$ 19,427,890$ 20,314,404$
Public project revenue 1,028,837 1,058,840 1,501,741 1,497,500 1,240,186
Capital improvement plan - - - - 455,641
Certificates of indebtedness 604,275 162,200 159,100 - -
Total certified tax levies18,122,241 18,993,390 20,220,992 20,925,390 22,010,231
Referendum market value levy686,662 674,161 599,138 605,138 595,438
Total levy18,808,903$ 19,667,551$ 20,820,130$ 21,530,528$ 22,605,669$
Tax capacity rate:
General fund revenue 23.183 22.536 20.755 19.636 19.563
Bonds & interest 2.382 1.549 1.858 1.514 1.634
Total tax capacity rate 25.565 24.085 22.613 21.150 21.197
Market value rate0.01000 0.00880 0.00703 0.00641 0.00601
86
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR 50TH & FRANCE-NO. 1200, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2007
Accounted
OriginalAmendedfor in CurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds 2,200,000$ 5,280,000$ 5,251,998$ -$ 28,002$
Tax increments received - 31,748,489 23,509,067 1,062,382 7,177,040
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 2,745,343 1,829 (747,172)
Other - 73,881 73,881 - -
Total sources of funds:3,000,000 41,467,707 33,353,035 1,064,211 7,050,461
Uses of funds:
Land acquisition - 873,061 873,061 - -
Installation of public utilities
and improvements 3,000,000 7,867,034 7,862,032 - 5,002
Bond payments:
Principal - 5,280,000 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 17,292 1,690 2,018
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 13,325,000 1,000,000 675,000
Total uses of funds:3,000,000 35,562,457 33,337,648 1,001,690 1,223,119
Funds remaining (deficit)-$ 5,905,250$ 15,387$ 62,521$ 5,827,342$
Cost to authority Price paid by developer
* Real estate sales
Liquor store site 128,064$ 105,002$
Union oil site 134,506 65,780
262,570$ 170,782$
87
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1201, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2007
Accounted
OriginalAmendedfor in CurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds 6,165,177$ 21,470,000$ 20,219,852$ -$ 1,250,148$
Tax increments received - 75,000,000 54,830,750 2,721,128 17,448,122
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 2,660,956 4,874 834,170
Other - 50,000 1,357 - 48,643
Total sources of funds:6,763,182 104,530,317 80,544,251 2,726,002 21,260,064
Uses of funds:
Land acquisition 6,682,998 12,200,000 6,894,303 - 5,305,697
Installation of public utilities
and improvements - 16,000,000 14,278,823 - 1,721,177
Site improvements or
preparation costs 2,885,484 2,000,000 468,098 - 1,531,902
Bond payments:
Principal - 21,470,000 22,445,000 - (975,000)
Interest - 20,100,000 19,772,264 - 327,736
Administrative costs 194,700 1,800,000 1,673,988 - 126,012
Paid to other governments - 110,000 83,919 8,030 18,051
Transfers out - 17,000,000 14,131,699 2,700,000 168,301
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 80,515,946 2,708,030 10,073,876
Funds remaining (deficit)(3,000,000)$ 11,232,465$ 28,305$ 17,972$ 11,186,188$
Cost to authority Price paid by developer
* Real estate sales
Retail site 8,350$ 11,899$
Hotel site 192,915 192,915
Elderly site 453,740 346,534
Office site 1,027,277 784,563
Coventry Townhouses 1,318,103 1,318,103
3,000,385$ 2,654,014$
88
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR GRANDVIEW AREA REDEVELOPMENT DISTRICT-NO. 1202, A TAX INCREMENT FINANCING DISTRICT
December 31, 2007
Accounted
OriginalAmendedfor in CurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds 4,500,000$ 9,900,000$ 9,475,915$ -$ 424,085$
Tax increments received - 29,737,107 12,810,158 1,123,986 15,802,963
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds - 300,000 934,829 37,539 (672,368)
Other - - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 28,684,314 1,161,525 14,791,268
Uses of funds:
Land acquisition - 6,500,000 3,836,119 224,410 2,439,471
Installation of public utilities
and improvements 4,310,000 17,127,000 9,738,935 - 7,388,065
Bond payments:
Principal - 9,900,000 6,772,555 265,000 2,862,445
Interest - 9,190,000 2,934,471 104,329 6,151,200
Loan/note interest - - 2,900,520 513,896 (3,414,416)
Paid to other governments - - 195,279 1,867 (197,146)
Administrative costs 190,000 1,920,107 1,331,830 11,848 576,429
Total uses of funds:4,500,000 44,637,107 27,709,709 1,121,350 15,806,048
Funds remaining (deficit)-$ -$ 974,605$ 40,175$ (1,014,780)$
Cost to authority Price paid by developer
* Real estate sales
5229 Eden Ave.1,822,319$
5220 Eden Circle 995,000
5244 Eden Circle (condemnation deposit)309,937
5201 Eden Circle 598,411 2,070,119
Project area 23,832 4,005,694
3,749,499$ 6,075,813$
89
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1203, A TAX INCREMENT FINANCING DISTRICT
(Districts 1200, 1201, 1203 and 1204 are pooled)
December 31, 2007
Accounted
OriginalAmendedfor in CurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds 41,400,000$ 41,400,000$ 33,761,677$ -$ 7,638,323$
Tax increments received80,000,000 90,000,000 31,884,017 2,886,081 55,229,902
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 3,112,145 392,243 (1,004,388)
Transfer in - 32,000,000 28,567,924 3,700,000 (267,924)
Sale of material - 255,710 255,710 - -
Developer payments - 297,826 297,826 - -
Other - 20,000 21,799 - (1,799)
Total sources of funds:126,400,000 179,431,702 109,538,168 6,978,324 62,915,210
Uses of funds:
Land acquisition 13,900,000 22,981,425 22,981,425 - -
Installation of public utilities
and improvements 26,677,000 25,871,230 16,635,950 52,480 9,182,800
Bond payments:
Principal 41,400,000 41,400,000 18,299,724 4,530,000 18,570,276
Interest 38,000,000 38,000,000 33,114,079 521,278 4,364,643
Administrative costs 1,140,800 1,600,000 1,304,196 22,553 273,251
Paid to other governments - 42,000 30,011 3,115 8,874
Loan/note interest - 14,684,711 3,971,090 487,765 10,225,856
Parkland dedication fees - 2,030,345 2,030,345 - -
Total uses of funds:121,117,800 146,609,711 98,366,820 5,617,191 42,625,700
Funds remaining (deficit)5,282,200$ 32,821,991$ 11,171,348$ 1,361,133$ 20,289,510$
Cost to authority Price paid by developer
* Real estate sales
Retail and theater site 3,213,720$ 3,213,720$
Medical office site 815,092 815,092
Office site 1,107,160 1,107,160
Office building #1 449,300 449,300
Office building #2 1,280,702 1,280,702
Office building #3 1,341,533 1,341,533
Office building #4 1,625,849 1,625,849
Office building #5 1,803,714 1,803,714
11,637,070$ 11,637,070$
90
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR 70TH STREET AND CAHILL ROAD DISTRICT-NO. 1207, A TAX INCREMENT FINANCING DISTRICT
December 31, 2007
Accounted
OriginalAmendedfor in CurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds 1,911,000$ 1,911,000$ -$ -$ 1,911,000$
Tax increments received2,177,855 2,177,855 746,863 - 1,430,992
Interest on invested funds - - 210,665 14,640 (225,305)
Total sources of funds:4,088,855 4,088,855 957,528 14,640 3,116,687
Uses of funds:
Land acquisition 529,400 529,400 35,673 2,188 491,539
Installation of public utilities
and improvements 325,000 325,000 540,279 - (215,279)
Demolition 150,000 150,000 - - 150,000
Relocation 160,000 160,000 - - 160,000
Capitalized interest 150,000 150,000 - - 150,000
Debt service 2,178,455 2,178,455 - - 2,178,455
Paid to other governments - - 2,730 - (2,730)
Administrative costs 596,000 596,000 74,830 - 521,170
Total uses of funds:4,088,855 4,088,855 653,512 2,188 3,433,155
Funds remaining (deficit)-$ -$ 304,016$ 12,452$ (316,468)$
91
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92
Contents
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
STATISTICAL SECTION
ThispartoftheCity'scomprehensiveannualfinancialreportpresents
detailedinformationasacontextforunderstandingwhattheinformationin
thefinancialstatements,notedisclosures,andrequiredsupplementary
information says about the City's overall financial health.
Page
94
Sources:Unlessotherwisenoted,theinformationintheseschedulesisderivedfromthe
comprehensiveannualfinancialreportsfortherelevantyear.TheCityimplementedGASB
Statement34in2003;schedulespresentinggovernment-wideinformationinclude
information beginning in that year.
Theseschedulescontaintrendinformationtohelpthe
readerunderstandhowtheCity'sfinancialperformance
and well-being have changed over time.
Theseschedulescontaininformationtohelpthereader
assesstheCity'smostsignificantlocalrevenuesource,
the property tax.
Theseschedulescontaininformationtohelpthereader
assesstheaffordabilityoftheCity'scurrentlevelsof
outstandingdebtandtheCity'sabilitytoissueadditional
Theseschedulesofferdemographicandeconomic
indicatorstohelpthereaderunderstandthe
environmentwithinwhichtheCity'sfinancialactivities
Theseschedulescontainserviceandinfrastructuredata
tohelpthereaderunderstandhowtheinformationinthe
City'sfinancialreportrelatestotheservicestheCity
provides and the activities it performs.
100
104
109
111
93
CITY OF EDINA, MINNESOTA
NET ASSETS BY COMPONENT
LAST FIVE FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006 2007
Governmental activities
Invested in capital assets,
net of related debt 21,792,377$ 34,320,784$ 36,092,020$ 69,814,012$ 67,680,882$
Restricted 4,676,748 2,145,488 78,943 - -
Unrestricted 31,876,783 28,762,040 35,796,801 15,280,058 25,136,312
Total governmental activities
net assets 58,345,908$ 65,228,312$ 71,967,764$ 85,094,070$ 92,817,194$
Business-type activities
Invested in capital assets,
net of related debt 29,952,549$ 37,240,476$ 40,044,169$ 46,981,755$ 43,046,160$
Restricted 1,672,828 - - - -
Unrestricted 15,344,474 11,934,496 11,121,720 6,379,515 13,649,355
Total business-type activities
net assets 46,969,851$ 49,174,972$ 51,165,889$ 53,361,270$ 56,695,515$
Primary government
Invested in capital assets,
net of related debt 51,744,926$ 71,561,260$ 76,136,189$ 116,795,767$ 110,727,042$
Restricted 6,349,576 2,145,488 78,943 - -
Unrestricted 47,221,257 40,696,536 46,918,521 21,659,573 38,785,667
Total primary government
net assets 105,315,759$ 114,403,284$ 123,133,653$ 138,455,340$ 149,512,709$
Fiscal Year
94
CITY OF EDINA, MINNESOTA
CHANGES IN NET ASSETS
LAST FIVE FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006 2007
Expenses
Governmental activities:
General government 5,839,893$ 6,934,045$ 4,967,008$ 5,414,961$ 7,039,298$
Public safety 10,784,215 11,063,767 12,019,027 13,300,351 13,743,194
Public works 5,621,291 5,834,490 7,185,784 8,973,031 8,757,022
Parks 4,484,685 4,248,060 5,901,648 5,341,682 5,025,560
Interest on long-term debt 2,760,022 2,399,682 2,288,524 2,973,749 1,887,633
Total governmental activities expenses 29,490,106 30,480,044 32,361,991 36,003,774 36,452,707
Business-type activities:
Utilities 7,930,502 7,801,580 8,254,409 9,234,651 10,036,844
Liquor 8,764,081 9,110,888 9,749,313 9,968,963 10,361,998
Aquatic center 711,061 701,768 725,936 795,614 780,981
Golf course 3,555,243 3,508,741 3,580,307 3,652,169 3,621,977
Community activity centers 3,833,026 3,850,192 3,825,562 4,048,649 4,168,534
Total business-type activities expenses 24,793,913 24,973,169 26,135,527 27,700,046 28,970,334
Total primary government expenses 54,284,019$ 55,453,213$ 58,497,518$ 63,703,820$ 65,423,041$
Program Revenues
Governmental activities:
Charges for services:
General government 930,391$ 454,603$ 619,526$ 731,613$ 784,659$
Public safety 4,213,081 4,634,744 5,614,406 6,146,114 5,632,642
Other activities 898,141 748,398 630,157 793,796 736,329
Operating grants and contributions 1,215,745 1,154,808 1,512,366 1,423,302 1,384,024
Capital grants and contributions 7,214,393 4,192,947 2,252,491 4,013,617 4,299,509
Total governmental activities program revenues 14,471,751 11,185,500 10,628,946 13,108,442 12,837,163
Business-type activities:
Utilities 9,694,981 9,875,078 10,240,381 11,421,474 13,125,773
Liquor 9,659,631 10,030,067 10,752,724 11,029,445 11,436,175
Aquatic center 861,340 764,134 849,380 867,626 868,833
Golf course 3,684,079 3,538,122 3,482,999 3,646,620 3,630,538
Community activity centers 2,966,731 3,254,012 3,251,860 3,337,153 3,517,111
Operating grants and contributions 132,031 138,447 131,408 122,358 127,492
Total business-type activities program revenues 26,998,793 27,599,860 28,708,752 30,424,676 32,705,922
Total primary government program revenues41,470,544$ 38,785,360$ 39,337,698$ 43,533,118$ 45,543,085$
Net (Expense)/Revenue
Governmental activities (15,018,355)$ (19,294,544)$ (21,733,045)$ (22,895,332)$ (23,615,544)$
Business-type activities 2,204,880 2,626,691 2,573,225 2,724,630 3,735,588
Total primary government net expense(12,813,475)$ (16,667,853)$(19,159,820)$(20,170,702)$ (19,879,956)$
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes17,815,426$ 17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$
Tax increment collections 7,342,270 6,761,934 7,060,744 7,228,002 7,793,577
Franchise taxes - 450,956 457,421 499,206 570,871
Unrestricted investment earnings 286,209 443,074 977,956 1,230,264 1,581,702
Gain on disposal of capital assets 26,669 - 63,674 8,418 58,377
Transfers (4,053,805) 655,227 841,500 838,230 919,625
Total governmental activities 21,416,769 26,176,948 28,472,497 30,218,418 32,383,153
Business-type activities:
Unrestricted investment earnings 387,117 227,167 236,654 283,771 510,678
Gain on disposal of capital assets (177,051) 6,490 22,538 25,210 7,604
Transfers 4,053,805 (655,227) (841,500) (838,230) (919,625)
Total business-type activities 4,263,871 (421,570) (582,308) (529,249) (401,343)
Total primary government 25,680,640$ 25,755,378$ 27,890,189$ 29,689,169$ 31,981,810$
Change in Net Assets
Governmental activities 6,398,414$ 6,882,404$ 6,739,452$ 7,323,086$ 8,767,609$
Business-type activities 6,468,751 2,205,121 1,990,917 2,195,381 3,334,245
Total primary government 12,867,165$ 9,087,525$ 8,730,369$ 9,518,467$ 12,101,854$
Fiscal Year
95
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1998 1999 2000a 2001
General fund
Reserved 1,379,739$ 2,407,155$ 141,939$ 15,872$
Unreserved 9,540,670 10,051,978 13,755,160 14,359,821
Total general fund 10,920,409$ 12,459,133$ 13,897,099$ 14,375,693$
All other governmental funds
Reserved 1,171,943$ 496,581$ 16,729,995$ 2,319,839$
Unreserved, reported in:
Special revenue funds 948,079 942,791 1,147,917 1,435,949
Capital projects funds 16,096,645 18,216,440 22,454,859 22,869,578
Total all other governmental funds18,216,667$ 19,655,812$ 40,332,771$ 26,625,366$
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
2002 2003b 2004 2005c 2006 2007
417,093$ 412,991$ 390,771$ 223,351$ 36,849$ 28,637$
14,325,972 9,961,074 10,226,055 11,595,433 13,797,189 14,078,220
14,743,065$ 10,374,065$ 10,616,826$ 11,818,784$ 13,834,038$ 14,106,857$
4,186,436$ 4,084,987$ 3,465,440$ 13,792,312$ 2,682,238$ 6,247,539$
1,589,518 686,777 781,458 731,027 13,179,904 14,750,448
26,750,351 19,608,849 16,651,788 17,032,750 3,160,085 5,853,322
32,526,305$ 24,380,613$ 20,898,686$ 31,556,089$ 19,022,227$ 26,851,309$
Fiscal Year
97
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1998 1999 2000 2001
Revenues
General property taxes 20,567,867$ 21,995,230$ 22,904,512$ 24,409,785$
Tax increment collections - - - -
Special assessments 844,070 990,330 1,159,876 1,086,093
Franchise fees 296,427 297,866 336,678 473,702
License and permits 2,091,365 2,135,541 1,835,828 2,239,611
Intergovernmental 2,551,452 3,185,008 1,880,680 5,085,981
Charges for services 1,833,148 3,215,441 2,902,666 1,962,172
Fines and forfeitures 691,355 794,710 967,421 976,952
Investment income 1,396,852 415,114 2,376,137 1,357,701
Rental of property 86,639 284,085 1,156,526 4,262,984
Other revenues 604,099 478,788 96,932 184,466
Total revenues 30,963,274 33,792,113 35,617,256 42,039,447
Expenditures
General government3,967,091 3,899,660 4,558,424 5,353,002
Public safety 8,131,293 8,516,673 8,846,360 9,409,291
Public works 4,084,651 3,744,124 3,672,057 4,313,065
Parks 1,960,111 2,240,730 2,150,588 2,375,565
Capital outlay 7,530,051 6,117,215 8,352,494 11,193,155
Debt service
Principal 2,224,724 3,275,000 6,050,000 3,740,000
Interest and other charges 4,099,809 3,262,266 3,108,601 3,148,719
Total expenditures 31,997,730 31,055,668 36,738,524 39,532,797
Revenues over (under) expenditures (1,034,456) 2,736,445 (1,121,268) 2,506,650
Other Financing Sources (Uses)
Transfers in 5,639,866 5,983,107 6,976,639 6,215,411
Transfers out (5,711,866) (6,006,107) (6,165,639) (6,201,152)
Parkland dedication 387,136 264,424 85,520 60,280
Sale of capital assets - - - -
Proceeds from borrowing - - 21,742,116 -
Premium on bonds issued - - - -
Discount on bonds issued - - - -
Proceeds from refunding - - - -
Payment to refunding escrow (17,260,276) - - (15,810,000)
Principal paid by escrow - - - -
Total other financing sources (uses)(16,945,140) 241,424 22,638,636 (15,735,461)
Net change in fund balances (17,979,596)$ 2,977,869$ 21,517,368$ (13,228,811)$
Debt service as a percentage of
noncapital expenditures 25.8%26.2%32.3%24.3%
a The substantial change in debt service as a percentage of noncapital expenditures in 2007 is due
to a change in the way this ratio is calculated. The City did not recalculate previously reported ratios.
Fiscal Year
98
2002 2003 2004 2005 2006 2007a
24,735,336$ 17,903,618$ 17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$
- 7,342,270 6,761,934 7,060,744 7,228,002 7,793,577
998,908 1,019,461 966,879 1,354,264 1,751,219 1,750,444
418,153 393,627 450,956 457,421 499,206 570,871
1,939,207 2,182,263 2,247,759 3,240,622 3,488,897 2,909,521
2,254,968 4,678,735 3,933,540 1,539,169 2,773,350 3,699,006
2,096,806 2,076,519 2,279,302 2,466,663 2,691,354 2,748,709
910,407 785,227 863,073 742,917 1,023,935 971,486
1,178,211 286,209 443,074 977,956 1,230,264 1,581,702
1,782,063 354,266 385,707 315,542 310,145 355,734
180,081 200,551 294,136 227,446 246,797 225,839
36,494,140 37,222,746 36,492,117 37,453,946 41,657,467 44,065,890
5,372,431 5,709,741 5,213,469 5,477,308 5,995,804 6,544,307
9,893,428 10,352,816 11,125,388 11,373,763 12,431,114 12,985,215
4,161,373 4,142,668 4,386,669 4,882,811 5,233,907 5,787,619
2,602,266 2,974,164 2,954,372 3,146,029 3,300,375 3,455,789
11,059,757 15,539,676 7,772,321 8,227,191 8,980,526 11,991,122
5,885,000 5,700,000 6,450,000 6,830,000 5,985,000 6,190,000
3,094,480 2,908,787 2,484,291 2,543,639 2,107,036 1,677,770
42,068,735 47,327,852 40,386,510 42,480,741 44,033,762 48,631,822
(5,574,595) (10,105,106) (3,894,393) (5,026,795) (2,376,295) (4,565,932)
12,308,480 8,752,126 8,367,595 7,797,369 6,865,258 7,290,391
(11,552,990) (12,805,931) (7,712,368) (6,955,869) (6,027,028) (6,370,766)
- - - - - -
- - - 135,045 54,457 66,845
13,637,416 1,540,000 - 15,816,165 - 11,735,000
- 59,219 - - - -
- - - (36,275) - (53,637)
- 6,570,000 - 16,764,721 - -
(2,550,000) (6,525,000) - (16,635,000) - -
- - - - (9,035,000) -
11,842,906 (2,409,586) 655,227 16,886,156 (8,142,313) 12,667,833
6,268,311$ (12,514,692)$ (3,239,166)$ 11,859,361$ (10,518,608)$ 8,101,901$
29.0%27.1%27.4%27.4%23.1%20.9%
Fiscal Year
99
CITY OF EDINA, MINNESOTA
ASSESSED VALUE, ACTUAL VALUE AND TAX CAPACITY OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
City TaxCity
Used AdjustedCapacity Referendum
EstimatedLimitedTaxableTotalfor RateNetRateRate
4,074,714$ DNA DNA87,727$ 75,545$ 77,762$ 16.813%0.01788%3.209$
4,267,759 DNA DNA85,964 72,221 74,421 17.810%0.01704%3.106
4,535,762 DNA DNA90,807 74,705 77,166 17.669%0.01634%3.006
4,861,730 DNA DNA99,650 80,964 83,716 17.233%0.01495%2.967
5,821,567 DNA DNA72,584 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 DNA DNA83,448 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
9,619,356 9,456,650 9,451,668 113,429 96,170 98,765 21.150%0.00641%2.172
Source: Hennepin County Taxpayer Services. 1998-2004 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.
The City receives reports from Hennepin County showing total market value, but not separated by property classification.
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.
Fiscal Direct
2007
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
Year
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 &
RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap
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%
19.636%1.514%21.150%0.006%39.110%18.244%0.147%8.417%86.921%
Source: Hennepin County Taxpayer Services. Some 1998-2004 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.
2007
2000
2005
2006
2001
2002
2003
2004
1998
1999
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
101
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
PercentagePercentage
of Totalof Total
Tax CapacityRankCapacityTax CapacityRankCapacity
Southdale Shopping Center 3,497,098$ 13.08%4,597,368$ 15.24%
Galleria Shopping Center 1,300,806 21.15%1,427,983 31.63%
Southdale Office Park 827,534 30.73%1,332,450 41.52%
Centennial Lakes Phase V 663,520 40.58%- 0.00%
Centennial Lakes Phase IV 650,646 50.57%- 0.00%
7700 France Office Bldg 554,076 60.49%- 0.00%
May Department Stores 513,070 70.45%- 0.00%
Centennial Lakes Medical Bldg443,108 80.39%- 0.00%
Southdale Medical Bldg 419,014 90.37%717,640 70.82%
Centennial Lakes Phase III 406,798 100.36%- 0.00%
Pentagon Office Park - 0.00%1,636,266 21.87%
United Healthcare Corporation - 0.00%842,415 50.96%
National Car - 0.00%828,674 60.94%
Cedars of Edina - 0.00%646,236 80.74%
Centennial Lakes Retail - 0.00%546,109 90.62%
Edinborough Plaza - 0.00%410,258 100.47%
Totals 9,275,670$ 8.18%12,985,399$14.80%
Source: City of Edina Assessing Office
19982007
Taxpayer
102
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections in
TaxPercentageSubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
13,827,840$ 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 83,214 17,068,312 96.28%
18,506,442 17,808,469 96.23%47,302 17,855,771 96.48%
18,808,903 18,066,892 96.06%102,625 18,169,517 96.60%
19,667,551 19,090,016 97.06%116,107 19,206,123 97.65%
20,820,130 20,310,889 97.55%138,834 20,449,723 98.22%
21,530,528 21,347,789 b 99.15%b - 21,347,789 99.15%
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.
b In 2007 the State of Minnesota reimbursed the City for HMVC after five years of not making payments.
2007
Total Collections to Date
Taxes
Payable
1998
2005
2006
Collected within the
Fiscal Year of the Levy
1999
2004
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)
GeneralPublicTaxPermanentRec.Utility TotalPercentage
ObligationProjectIncrementImprovement Facility RevenuePrimary of PersonalPer
DebtRevenueBondsRevolvingBondsBondsGovernment IncomeCapita
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 3.42%1,441
5,670 16,080 20,460 1,460 4,595 3,550 51,815 2.63%1,105
10,990 15,390 15,665 7,170 3,690 11,070 63,975 3.24%1,364
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
2007
Business-Type ActivitiesGovernmental Activities
1999
2000
Year
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)
GeneralPublic Tax Percentage
ObligationProjectIncrement of Property Per
DebtRevenueBonds Total Value a Capita
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%1,206
5,670 16,080 20,460 42,210 0.48%900
10,990 15,390 15,665 42,045 0.44%897
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.
2002
2003
2004
2007
General Bonded Debt
Year
1998
Fiscal
1999
2000
2005
2006
2001
105
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2007
Net GeneralPercentage
Obligation Bonded ApplicableCity Share
Debt Outstanding a in City b of Debt
Overlapping Debt:
Hennepin County468,235,504$ 6.86%32,120,956$
Hennepin Suburban Park District 73,402,105 9.09%6,672,251
Hennepin Regional Rail Authority 44,577,469 6.86%3,058,014
School Districts:
ISD No. 273 (Edina)89,083,000 98.27%87,541,864
ISD No. 270 (Hopkins)103,257,789 8.45%8,725,283
ISD No. 271 (Bloomington)209,988,225 0.00%-
ISD No. 272 (Eden Prairie)105,547,950 0.90%949,932
ISD No. 280 (Richfield)17,787,396 16.18%2,878,001
ISD No. 283 (St. Louis Park)41,131,509 0.02%8,226
Metro Council 118,428,506 3.11%3,683,127
Total Overlapping Debt 1,271,439,453 145,637,654
City of Edina 23,800,664 100.00%23,800,664
Total Overlapping and Direct Debt 1,295,240,117$ 169,438,318$
Ratio of debt per capita (46,896 population)3,613$
Ratio of debt to estimated market valuation of $9,619,356,300 1.76%
Source: Hennepin County Taxpayer Services
a Calculation excludes revenue and special assessment bonds as well as sinking fund balance, if any.
b The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
106
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Debt limit 85,355$ 90,715$ 97,235$ 116,431$ 138,279$ 138,190$ 160,674$ 173,867$ 191,974$ 199,775$
Total net debt
applicable
to limit 8,090 7,825 7,550 7,250 6,950 8,165 7,295 11,765 3,691 8,099
Legal debt
margin 77,265$ 82,890$ 89,685$ 109,181$ 131,329$ 130,025$ 153,379$ 162,102$ 188,283$ 191,676$
Total net debt
applicable to
the limit as a
percentage of
debt limit 9.48%8.63%7.76%6.23%5.03%5.91%4.54%6.77%1.92%4.05%
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
199,774,750
(2,890,541)
191,675,291$
Fiscal Year
9,988,737,500$
10,990,000
8,099,459
Legal Debt Margin Calculation for Fiscal Year 2007
107
CITY OF EDINA, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Less: operatingNet available
Revenue expenses revenue Principal Interest Total Coverage
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
20071,497,500 - 1,497,500 690,000 725,855 1,415,855 1.06
Tax Increment Bonds
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
20077,793,577 - 7,793,577 4,795,000 625,606 5,420,606 1.44
Permanent Improvement Revolving Bonds (Special Assessment)
1998 699,354 - 699,354 185,000 31,008 216,008 3.24
1999 855,137 - 855,137 180,000 22,250 202,250 4.23
2000 721,871 - 721,871 180,000 13,340 193,340 3.73
2001 684,660 - 684,660 170,000 4,420 174,420 3.93
2002 - - - - - - -
2003 - - - - - - -
2004 - - - - - - -
2005 - - - - - - -
2006 85,656 - 85,656 - 43,366 43,366 1.98
2007 391,921 - 391,921 160,000 46,694 206,694 1.90
Utility Bond
1998 8,108,612 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
200713,125,419 9,735,839 3,389,580 690,000 108,840 798,840 4.24
Recreational Facility Bonds
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
20075,870,485 5,798,005 72,480 905,000 168,159 1,073,159 0.07
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
47,1131,556,896$ 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 93.3%3.90%
47,4481,997,134 42,091 92.1%3.30%
46,896 1,973,900 42,091 92.0%3.00%
46,896 1,973,900 42,091 92.0%3.45%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2006 is the most recent estimate.
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. 2005 is the most recent estimate.
High school graduation rate data from U.S. Census Bureau for all of Hennepin County. 2006 is the
most recent estimate.
Unemployment rate data from State of Minnesota Department of Employment and Economic Development.
2000
1999
2007
1998
Fiscal
Year
2006
2005
2004
2003
2002
2001
109
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total City Total City
EmployeesRankEmployment EmployeesRankEmployment
Jerry's Enterprises, Inc.4,500 120.17%2,000 27.96%
Fairview Southdale Hospital 2,500 211.21%2,400 19.55%
Macy's (Marshall Field's or Dayton's)1,200 35.38%500 51.99%
Edina Public Schools ISD #273 1,172 45.25%- 0.00%
Nash Finch Co.350 51.57%350 81.39%
International Dairy Queen Inc.300 61.34%300 91.19%
City of Edina 277 71.24%262 101.04%
JC Penney Co.250 81.12%400 61.59%
Edina Realty 210 90.94%- 0.00%
Con Agra Foods-Snack Food Gr.196 100.88%- 0.00%
Golden Valley Microwave Foods - 0.00%650 32.59%
Health Risk Management Inc.- 0.00%552 42.20%
Norwest Funding - 0.00%358 71.42%
Totals 10,955 49.11%7,772 30.92%
Source: State of Minnesota Department of Employment and Economic Development (DEED).
DNA: Historical data is not available
19982007
Employer
110
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
General Government
Administration 8.00 8.00 8.00 8.00 8.25 8.25 8.25 8.25 8.25 8.25
Planning 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75
Finance 5.40 5.40 5.50 5.75 5.50 5.50 5.50 5.50 5.50 5.50
Elections 0.50 0.50 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00
Assessing 6.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Public Works
Administration 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Engineering 7.50 7.50 7.50 7.50 7.50 6.50 7.50 7.50 7.50 8.50
Supervision 2.00 2.00 2.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Maintenance 28.00 28.00 28.00 27.00 28.00 28.00 28.00 28.00 28.00 28.00
Public Safety
Police Protection 66.00 66.00 67.00 70.00 69.00 68.00 66.00 69.00 69.00 70.00
Animal Control 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Fire Protection30.00 30.00 31.00 32.00 32.00 32.00 32.00 32.00 32.00 33.00
Public Health 3.58 3.08 3.08 3.08 3.75 2.75 2.75 2.75 2.75 2.75
Inspections 5.00 5.75 5.75 6.75 6.50 6.50 6.50 6.50 6.50 7.50
Parks & Recreation
Administration 7.00 7.00 7.00 7.00 7.00 7.00 6.80 6.80 6.80 6.80
Maintenance 16.00 16.00 16.00 17.00 17.00 16.00 16.50 16.40 16.40 16.40
Central Services
General 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00
City Hall 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10
Public Works Bldg 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90
Equipment Ops7.00 7.00 7.00 6.50 6.50 6.50 6.50 6.50 6.50 6.50
Utilities 15.50 16.25 16.25 15.70 14.50 14.50 15.50 15.75 15.75 15.25
Liquor 10.00 10.00 10.00 9.30 9.75 9.75 9.75 9.75 9.75 9.75
Aquatic Center - - - - - - 0.20 0.55 0.55 0.55
Golf Course 14.00 14.00 14.00 14.00 15.00 15.00 13.00 13.00 13.00 13.00
Arena 4.00 4.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 6.00
Art Center 2.00 3.00 3.00 3.00 3.00 3.00 3.00 2.50 2.00 2.00
Edinborough Park/
Centennial Lakes 13.00 13.00 12.00 13.00 12.00 12.00 12.00 12.00 11.00 12.00
Other 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 4.00
Total 261.73 264.73 266.83 272.83 273.00 270.00 268.50 271.50 270.00 277.50
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
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
General Government
Total City employees- - 801 868 860 879 870 909 887 890
Votes cast a 27,246 3,099 30,483 10,008 28,156 10,721 31,730 1,367 26,270 7,930
Public Works
Asphalt placed (tons)- - - - - - - - 9,000 8,000
Concrete (cu. yds.)- - - - - - - - 650 850
Public Safety
Crimes reported - - - 2,411 2,139 2,073 1,983 1,908 1,937 2,010
Fire calls 1,155 1,131 1,091 1,142 1,106 1,062 1,060 1,055 963 1,012
Medical calls 2,700 2,812 2,914 2,931 3,153 3,030 3,199 3,423 3,470 3,510
Central Services
Vehicle fixes - - - - - - - - 2,398 2,460
Utilities
Daily consumption b - - - - - - - - 7,209 7,372
Sewer cleaned (miles)- - - - - - - - 48 48
Aquatic Center
Attendance 130,000 132,000 125,000 115,000 111,056 96,419 88,636 139,415 120,406 114,173
Golf Course
Total rounds played149,776 142,862 137,838 120,898 112,078 123,770 116,734 113,679 114,737 112,821
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
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Public Works
Miles of streets 224 224 224 224 224 224 224 224 224 224
City parking ramps4 4 4 4 4 4 4 4 4 4
Public Safety
Fire stations 2 2 2 2 2 2 2 2 2 2
Parks & Recreation
City parks 39 39 39 39 39 40 40 40 40 40
Acreage of parks1,552 1,552 1,552 1,552 1,552 1,553 1,553 1,553 1,553 1,553
Park buildings 26 26 26 26 27 27 27 27 27 27
Utilities
Wells 18 18 18 18 18 18 18 18 18 19
Watermain miles199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles186 186 186 186 186 186 186 186 186 186
Sewer connections 13,984 13,984 13,984 13,984 13,984 13,984 14,851 14,851 14,851 14,851
Arena
Ice sheets 3 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