HomeMy WebLinkAbout2008 Comprehensive Annual Financial Reportcomprehensive annual financial report for the fiscal year ended december 31, 2008
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2008
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
Other Post-Employment Benefits Plan Schedule of Funding Progress 69
Notes to Required Supplementary Information 71
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 74
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds 75
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 76
Combining Statement of Net Assets - Nonmajor Proprietary Funds 78
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets - Nonmajor Proprietary Funds 79
Combining Statement of Cash Flows - Nonmajor Proprietary Funds 80
Combining Statement of Changes in Assets and Liabilities - Agency Funds 83
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates 85
Combined Schedule of Bonded Indebtedness 86
Schedule of Sources and Uses of Public Funds for 50th & France - #1200 88
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1201 89
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #1202 90
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1203 91
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207 92
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.
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2008
Term Expires
Mayor:
James Hovland December 31, 2012
Council Members:
Joni Bennett December 31, 2010
Scot Housh December 31, 2010
Mary Brindle December 31, 2012
Ann Swenson December 31, 2012
City Manager:
Gordon Hughes Appointed
Finance Director/Treasurer:
John Wallin Appointed
City Clerk:
Debra Mangen Appointed
5
City of Edina
Boards andCommissions
HRA Personnel
Elections
City Clerk
Human Resources
Human Services
Communications
Technology
Liquor
Administration Assessing
Recycling
Health
Water and Sewer
Street Maintenance
Engineering
Public
Works
Planning
Recreational
Facilities
Recreational
Programs
Park Maintenance
Parks and
Recreation
Building
Inspections
Finance
Civil Defense
Animal Control
Police Operations
Police
Prevention and
Control
EMS
Special Operations
Fire
Public Safety
City Manager
City Council City Attorney
Citizens
9
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Edina (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended
December 31, 2008. 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
$164,419,133 (net assets). Of this amount, $41,649,238 (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 $14,516,550. $5,526,288 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 $42,067,899, an increase of $719,859 in comparison with the prior year. Of this
total amount, $33,585,999, or 80%, 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
$14,365,021, or 51% of total general fund expenditures.
• The City’s total bonded debt increased by $12,320,000 during the current fiscal year, from
$63,975,000 to $76,295,000. The City issued new debt during the year consisting of $7,755,000
permanent improvement revolving bonds to finance special assessment projects, and
$13,985,000 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 $164,419,133 at the close of the most
recent fiscal year.
The largest portion of the City's net assets ($118,452,963 or 72%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
12
City of Edina’s Net Assets
2008 2007 2008 2007 2008 2007
Current and
other assets54,476,230$ 50,350,983$ 24,630,275$ 16,432,230$ 79,106,505$ 66,783,213$
Capital assets108,049,357 99,739,977 65,348,867 57,854,580 173,398,224 157,594,557
Total assets162,525,587$ 150,090,960$ 89,979,142$ 74,286,810$ 252,504,729$ 224,377,770$
Long-term liabilities
outstanding 44,334,972$ 43,845,870$ 24,334,398$ 13,071,516$ 68,669,370$ 56,917,386$
Other liabilities13,649,480 13,038,022 5,766,746 4,519,779 19,416,226 17,557,801
Total liabilities57,984,452$ 56,883,892$ 30,101,144$ 17,591,295$ 88,085,596$ 74,475,187$
Net assets:
Invested in capital
assets, net of
related debt71,601,227$ 67,680,882$ 46,851,736$ 43,046,160$ 118,452,963$ 110,727,042$
Restricted 3,362,446 - 954,486 - 4,316,932 -
Unrestricted 29,577,462 25,526,186 12,071,776 13,649,355 41,649,238 39,175,541
Total net assets104,541,135$ 93,207,068$ 59,877,998$ 56,695,515$ 164,419,133$ 149,902,583$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net assets ($4,316,932) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
($41,649,238) 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 $2,473,697 in unrestricted net assets, largely due to the large number
and scope of special assessment project work undertaken and levied for during the year.
Management’s Discussion and Analysis (Continued)
13
As shown below, the City’s net assets increased by $14,516,550 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Assets
2008 2007 2008 2007 2008 2007
Revenues:
Program revenues:
Charges for services7,442,883$ 7,153,630$ 33,959,038$ 32,578,430$ 41,401,921$ 39,732,060$
Operating grants and
contributions 1,170,183 1,405,669 147,456 127,492 1,317,639 1,533,161
Capital grants and
contributions 7,710,015 4,299,509 - - 7,710,015 4,299,509
General revenues:
Property taxes 22,242,276 21,459,001 - - 22,242,276 21,459,001
Other taxes 9,225,900 8,364,448 - - 9,225,900 8,364,448
Gain on disposal
of assets 1,265 58,377 14,505 7,604 15,770 65,981
Unrestricted investment
earnings 1,185,899 1,588,695 607,312 510,678 1,793,211 2,099,373
Total revenues 48,978,421 44,329,329 34,728,311 33,224,204 83,706,732 77,553,533
Expenses:
General government 6,836,248 7,039,298 - - 6,836,248 7,039,298
Public safety 14,833,647 13,743,194 - - 14,833,647 13,743,194
Public works 9,046,873 8,757,022 - - 9,046,873 8,757,022
Parks 5,971,565 5,025,560 - - 5,971,565 5,025,560
Interest on long-term debt1,923,821 1,887,633 - - 1,923,821 1,887,633
Utilities - - 10,625,811 10,036,844 10,625,811 10,036,844
Liquor - - 11,049,223 10,361,998 11,049,223 10,361,998
Aquatic center - - 787,663 780,981 787,663 780,981
Golf course - - 3,612,482 3,621,977 3,612,482 3,621,977
Community activity
centers - - 4,502,849 4,168,534 4,502,849 4,168,534
Total expenses 38,612,154 36,452,707 30,578,028 28,970,334 69,190,182 65,423,041
Increase in net assets
before transfers 10,366,267 7,876,622 4,150,283 4,253,870 14,516,550 12,130,492
Transfers 967,800 919,625 (967,800) (919,625) - -
Increase in net assets 11,334,067 8,796,247 3,182,483 3,334,245 14,516,550 12,130,492
Net assets - January 1 93,207,068 84,410,821 56,695,515 53,361,270 149,902,583 137,772,091
Net assets - December 31104,541,135$ 93,207,068$ 59,877,998$ 56,695,515$ 164,419,133$ 149,902,583$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
14
Governmental Activities
Governmental activities increased the City's net assets by $11,334,067, accounting for 78% of the
total growth in net assets. Key elements of this increase are as follows:
• Property tax revenues increased by $783,275 (3.7%) during the year, which is less than the
property tax levy increase of 5% outlined in our 2008 budget due to the Governor’s action to
unallot the second half Market Value Homestead Credit (MVHC) payment.
• The City also collected $8,578,434 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
46%
Charges for services
15%
Operating grants and
contributions
2%
Capital grants and
contributions
16%
Other
2%
Other taxes
19%
-
2
4
6
8
10
12
14
16
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 $3,182,483 accounting for 22% 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 4.2% from 2007. The Utilities fund
charges for services increased $587,476 (4.5%) from the previous year due to increased
rates. The City commissioned a utility rate study for the 2008 year that called for significant
rate increases to pay for current and future infrastructure needs.
• Business-type activities made net transfers of $967,800 to governmental activities during
2008 to provide cash flow for operational and capital improvement needs.
Revenues by Source - Business-type Activities
Other
1.8%
Operating grants
and contributions
0.4%
Charges for
services
97.8%
-
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 $42,067,899, an increase of $719,859 in comparison with the prior year. Approximately
80% of this total amount ($33,585,999) constitutes unreserved fund balance. The remainder of the
fund balance is reserved because it has already been committed 1) to provide for prepaid items
($13,982), 2) to pay committed contracts ($3,400,955), 3) for special projects ($182,207), 4) for
construction projects ($1,216,132) or 5) to pay debt service ($3,668,624).
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 $14,365,021. 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 $272,146 during the current fiscal year. Key
factors in this growth are as follows:
• General fund property tax revenues increased by 3.1% in the current fiscal year despite a
levy increase of 4.6%. The shortfall is due to the Governor’s action to unallot the second half
Market Value Homestead Credit (MVHC) payment.
• Total general fund expenditures increased 3.6% in the current fiscal year. Current
expenditures increased in three of the four functional areas (safety, public works, and parks).
General government current expenditures decreased by 5.3% due to a decrease in spending
for the comprehensive plan, contingency expenditures, and employee retirements. Other than
the decreases in contingency expenditures and employee retirements, expenditures were
very close to the increase planned for in our 2008 budget, which projected an expenditure
increase of 5.2%.
• The liquor fund transferred $742,800 of profits to the general fund.
• The general fund made transfers totaling $450,000 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 decreased by $525,244 in the current fiscal
year because the City is using accumulated tax increment funds to pay for the promenade project.
The debt service fund has a total fund balance of $3,668,624, 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
$778,083. 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 decreased by $65,437 in 2008 due to decreases in investment income
and the transfer from the general fund. A significant portion of the fund balance in the construction
fund represents unspent bond proceeds that will be spent on construction projects that will continue
into 2009.
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 $8,583,503. The total
growth in net assets was $3,333,725. Operating revenues and expenses in the utilities fund increased
by 3.2% and 3.5%, respectively, in 2008, due to rate increases that are intended to help replace
aging infrastructure. The City invested $9,518,872 in utility fund capital assets during 2008.
Unrestricted net assets of the liquor fund at the end of the year amounted to $1,436,624. Total net
assets decreased by $204,424. The liquor fund continues to transfer profits back into other City
funds, including the general, construction, golf course, arena and art center funds. The liquor fund
made transfers totaling $1,277,800 to other funds during 2008. The majority of this amount
($742,800) 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 $204,557.
Aquatic center revenues increased slightly from 2007 due to increased rates. The aquatic center
remains profitable.
Unrestricted net assets of the golf course fund at the end of the year amounted to a deficit of
($1,530,402), a decrease of $2,110 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. The golf course made the final payment on some of its debt
on January 1, 2009, and refinanced the remaining debt on April 29, 2009, so debt service will be less
of a burden in upcoming years.
General Fund Budgetary Highlights
During the year there was a $400,000 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 exceeded budgetary estimates, and since increased revenues were
greater than expenditures, there was no need to draw upon existing fund balance.
Major variances from budget include property tax revenues that were under budget by $261,585 due
to action by the Governor to unallot the second half payment for the Market Value Homestead Credit
(MVHC) program. The City exceeded budgeted revenues in several 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 $78,587 under budget due to a low 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, 2008, amounted to $173,398,224 (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
10 percent (an 8 percent increase for governmental activities and a 13 percent 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 continued reconstruction of Fire Station #1 on Tracy Avenue; construction in
progress as of the close of the fiscal year has reached $5,422,305.
• A variety of street construction, sidewalk and traffic signal projects began in 2008, including
the country club neighborhood project; construction in progress as of the close of the year
reached $6,725,036.
• A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer, including the country club neighborhood project; construction in progress as of the
close of the fiscal year reached $9,765,174.
City of Edina’s Capital Assets
(Net of Depreciation)
2008 2007 2008 2007 2008 2007
Land and land
improvements 26,109,904$ 26,795,278$ 4,832,171$ 5,131,094$ 30,942,075$ 31,926,372$
Buildings and
improvements 35,576,980 29,542,652 6,486,370 6,815,285 42,063,350 36,357,937
Machinery and equipment 8,003,483 8,438,435 2,098,994 2,293,057 10,102,477 10,731,492
Infrastructure 24,946,400 19,582,847 41,962,368 39,035,017 66,908,768 58,617,864
Construction in progress 13,412,590 15,380,765 9,968,964 4,580,127 23,381,554 19,960,892
Total 108,049,357$ 99,739,977$ 65,348,867$ 57,854,580$ 173,398,224$ 157,594,557$
Governmental Activities Business-Type Activities Totals
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 $76,295,000, an increase of $12,320,000 from 2007. The key factor in this increase
was the issuance of $13,985,000 of General Obligation Revenue bonds, and $7,755,000 of General
Obligation Permanent Improvement Revolving (PIR) bonds.
$10,420,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount decreased from 2007 due to regularly scheduled principal
payments on outstanding issues.
$14,770,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount increased from 2007 due to a new issue during 2008.
An additional $10,015,000 of general obligation tax increment debt financed the City’s economic
development program. This amount decreased in 2008 due to regularly scheduled principal payments
on outstanding issues.
Also outstanding is $14,675,000 public project revenue bonds which financed the City Hall and Police
facility as well as two gymnasiums. This amount decreased in 2008 due to regularly scheduled
principal payments on outstanding issues.
There is a total of $26,415,000 in revenue bonds for improvements to the enterprise funds.
Management’s Discussion and Analysis (Continued)
19
City of Edina’s Outstanding Debt
2008 2007 2008 2007 2008 2007
Tax increment bonds 10,015,000$ 15,665,000$ -$ -$ 10,015,000$ 15,665,000$
General obligation bonds 10,420,000 10,990,000 - - 10,420,000 10,990,000
Public improvement bonds 14,770,000 7,170,000 - - 14,770,000 7,170,000
Public project revenue bonds 14,675,000 15,390,000 - - 14,675,000 15,390,000
Revenue bonds - - 26,415,000 14,760,000 26,415,000 14,760,000
Total 49,880,000$ 49,215,000$ 26,415,000$ 14,760,000$ 76,295,000$ 63,975,000$
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 3% of total
Estimated Market Value. The current debt limitation for the City is $302,384,967. Only $25,095,000 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 relatively healthy local economy helps to make this goal a reality. The unemployment rate in
Edina for February 2009 was 6%, 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, although the rapid
growth appears to be ending. Estimated market value of all real estate increased 1.3% for taxes
payable in 2009 after a 3.8% increase the year before.
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%
1999200020012002200320042005200620072008
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 2% for taxes payable in 2009, and has
been increasing steadily ever since the state revised property tax law in 2001 for taxes payable in
2002.
Due to the recent increases in market value and tax capacity, property tax rates had been decreasing
through 2007, although tax rates now appear to be rising slightly.
All of these factors above were considered in preparing the City’s budget for the 2009 fiscal year. The
City’s adopted 2009 budget includes a property tax levy of $21,202,691 for the general fund, an
increase of 4.4% from the 2008 general fund levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2008
GovernmentalBusiness-type
Activities Activities Total
Assets:
Current assets:
Cash and cash equivalents 44,269$ 1,150,174$ 1,194,443$
Investments 39,973,541 9,597,642 49,571,183
Restricted investments 4,617,087 8,116,762 12,733,849
Accrued interest 177,973 99,421 277,394
Accounts receivable, net 477,069 3,585,854 4,062,923
Special assessments receivable 8,334,720 241,307 8,576,027
Internal balances (185,000) 185,000 -
Due from other governments 757,166 5,956 763,122
Prepaid items 13,982 344,406 358,388
Inventory - 1,185,938 1,185,938
Total current assets 54,210,807 24,512,460 78,723,267
Noncurrent assets:
Deferred charges 265,423 117,815 383,238
Nondepreciable capital assets 30,846,419 11,057,929 41,904,348
Depreciable capital assets (net)77,202,938 54,290,938 131,493,876
Total noncurrent assets 108,314,780 65,466,682 173,781,462
Total assets 162,525,587 89,979,142 252,504,729
Liabilities:
Current liabilities:
Accounts payable 2,543,920 1,245,019 3,788,939
Salaries payable 756,292 214,467 970,759
Accrued interest payable 751,478 386,247 1,137,725
Contracts payable 416,641 173,759 590,400
Due to other governments 19,394 161,528 180,922
Deposits payable 67,051 123,421 190,472
Unearned revenue 4,890 103,128 108,018
Net OPEB obligation 270,330 37,174 307,504
Compensated absences payable 1,404,484 417,003 1,821,487
Bonds payable 7,415,000 2,905,000 10,320,000
Total current liabilities 13,649,480 5,766,746 19,416,226
Noncurrent liabilities:
Compensated absences payable 2,106,726 625,505 2,732,231
Bonds payable, net of unamortized discount 42,228,246 23,708,893 65,937,139
Total noncurrent liabilities 44,334,972 24,334,398 68,669,370
Total liabilities 57,984,452 30,101,144 88,085,596
Net assets:
Invested in capital assets, net of related debt 71,601,227 46,851,736 118,452,963
Restricted for debt service 3,362,446 954,486 4,316,932
Unrestricted 29,577,462 12,071,776 41,649,238
Total net assets 104,541,135$ 59,877,998$ 164,419,133$
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, 2008
Operating Capital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government 6,836,248$ 840,070$ 188,131$ -$
Public safety 14,833,647 5,839,683 778,831 -
Public works 9,046,873 385,439 195,000 7,710,015
Parks 5,971,565 377,691 8,221 -
Interest on long-term debt 1,923,821 - - -
Total government activities 38,612,154 7,442,883 1,170,183 7,710,015
Business-type activities:
Utilities 10,625,811 13,713,249 120,982 -
Liquor 11,049,223 12,122,599 - -
Aquatic center 787,663 925,388 - -
Golf course 3,612,482 3,680,584 - -
Community activity centers 4,502,849 3,517,218 26,474 -
Total business-type activities30,578,028 33,959,038 147,456 -
Total primary government 69,190,182$ 41,401,921$ 1,317,639$ 7,710,015$
The accompanying notes are an integral part of these financial statements.
Program Revenues
22
GovernmentalBusiness-type
Activities Activities Total
(5,808,047)$ -$ (5,808,047)$
(8,215,133) - (8,215,133)
(756,419) - (756,419)
(5,585,653) - (5,585,653)
(1,923,821) - (1,923,821)
(22,289,073) - (22,289,073)
- 3,208,420 3,208,420
- 1,073,376 1,073,376
- 137,725 137,725
- 68,102 68,102
- (959,157) (959,157)
- 3,528,466 3,528,466
(22,289,073) 3,528,466 (18,760,607)
General revenues:
Property taxes 22,242,276 - 22,242,276
Tax increment collections 8,578,434 - 8,578,434
Franchise taxes 647,466 - 647,466
Unrestricted investment earnings 1,185,899 607,312 1,793,211
Gain on disposal of capital assets 1,265 14,505 15,770
Transfers 967,800 (967,800) -
Total general revenues and transfers 33,623,140 (345,983) 33,277,157
Change in net assets 11,334,067 3,182,483 14,516,550
Net assets - beginning 93,207,068 56,695,515 149,902,583
Net assets - ending 104,541,135$ 59,877,998$ 164,419,133$
Net (Expense) Revenue and
Changes in Net Assets
23
This page left blank intentionally.
24
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2008
Housing &NonmajorTotal
RedevelopmentDebt GovernmentalGovernmental
GeneralAuthorityServiceConstructionFunds Funds
Assets
Cash and cash equivalents 957$ 15,096$ 9,613$ 4,647$ 13,956$ 44,269$
Investments - unrestricted15,351,060 14,294,122 3,253,353 6,377,606 697,400 39,973,541
Investments - restricted - - - 4,617,087 - 4,617,087
Accrued interest 74,435 52,139 4 46,818 4,577 177,973
Accounts receivable 291,834 - - 4,381 180,854 477,069
Special assessments
receivable - - 6,077,483 2,257,237 - 8,334,720
Due from other funds - 18,907 387,000 - 575,000 980,907
Due from other governments583,541 28,989 22,654 77,787 44,195 757,166
Prepaid items 13,982 - - - - 13,982
Total assets 16,315,809$ 14,409,253$ 9,750,107$ 13,385,563$ 1,515,982$ 55,376,714$
Liabilities and fund balances
Liabilities:
Accounts payable 916,138$ 856,649$ 4,000$ 715,769$ 51,364$ 2,543,920$
Salaries payable 743,172 - - 3,257 9,863 756,292
Contracts payable - - - 416,641 - 416,641
Due to other funds 218,907 - - 910,000 37,000 1,165,907
Due to other governments 4,463 14,931 - - - 19,394
Deposits payable 54,126 - - 12,925 - 67,051
Unearned revenue - - - - 4,890 4,890
Deferred revenue - - 6,077,483 2,257,237 - 8,334,720
Total liabilities 1,936,806 871,580 6,081,483 4,315,829 103,117 13,308,815
Fund balance:
Reserved for:
Prepaid items 13,982 - - - - 13,982
Encumbrances - - - 3,400,955 - 3,400,955
Special projects - - - 182,207 - 182,207
Construction projects - - - 1,216,132 - 1,216,132
Debt service - - 3,668,624 - - 3,668,624
Unreserved:
Designated, reported in:
General Fund 13,672,185 - - - - 13,672,185
Capital Project Funds - - - 4,270,440 - 4,270,440
Undesignated, reported in:
General Fund 692,836 - - - - 692,836
Special Revenue Funds - 13,537,673 - - 1,412,865 14,950,538
Total fund balance 14,379,003 13,537,673 3,668,624 9,069,734 1,412,865 42,067,899
Total liabilities and
fund balances 16,315,809$ 14,409,253$ 9,750,107$ 13,385,563$ 1,515,982$ 55,376,714$
Fund balance reported above 42,067,899$
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 108,049,357
Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred in the funds 8,334,720
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.(53,910,841)
Net assets of governmental activities 104,541,135$
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, 2008
Housing &NonmajorTotal
RedevelopmentDebt GovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes 19,983,295$ -$ 2,258,981$ -$ -$ 22,242,276$
Tax increment collections - 8,578,434 - - - 8,578,434
Special assessments - - 564,534 1,877,956 - 2,442,490
Franchise fees - - - - 647,466 647,466
License and permits 2,885,781 - - 29,674 - 2,915,455
Intergovernmental 825,049 - - 1,927,656 253,178 3,005,883
Charges for services 3,039,841 - - 54,100 - 3,093,941
Fines and forfeitures 968,893 - - - 104,281 1,073,174
Investment income 260,249 463,894 35,411 359,446 66,899 1,185,899
Rental of property 254,437 - - 1,170 - 255,607
Other revenues 18,733 - - 9,664 98,326 126,723
Total revenues 28,236,278 9,042,328 2,858,926 4,259,666 1,170,150 45,567,348
Expenditures:
Current:
General government 3,985,011 1,399,755 - 4,798 845,788 6,235,352
Public safety 13,639,459 - - 85,287 64,051 13,788,797
Public works 5,845,756 - - 343,838 - 6,189,594
Parks 3,605,066 - - 88,529 - 3,693,595
Capital outlay:
General government 23,159 - - 226,242 - 249,401
Public safety 574,566 - - 2,414,502 - 2,989,068
Public works 624,944 - - 8,002,768 - 8,627,712
Parks 55,796 2,072,123 - 672,807 - 2,800,726
Debt service:
Bond principal - - 7,090,000 - - 7,090,000
Interest and fiscal charges - - 1,967,021 - - 1,967,021
Total expenditures 28,353,757 3,471,878 9,057,021 11,838,771 909,839 53,631,266
Revenues over
(under) expenditures (117,479) 5,570,450 (6,198,095) (7,579,105) 260,311 (8,063,918)
Other financing sources (uses):
Transfers in 742,800 - 6,540,785 700,000 - 7,983,585
Transfers out (450,000) (6,095,694) - (470,091) - (7,015,785)
Sale of capital assets 96,825 - - - - 96,825
Bonds issued - - 435,393 7,319,607 - 7,755,000
Discount on bonds issued - - - (35,848) - (35,848)
Total other financing
sources (uses)389,625 (6,095,694) 6,976,178 7,513,668 - 8,783,777
Net increase (decrease)
in fund balance 272,146 (525,244) 778,083 (65,437) 260,311 719,859
Fund balance - January 114,106,857 14,062,917 2,890,541 9,135,171 1,152,554 41,348,040
Fund balance - December 3114,379,003$ 13,537,673$ 3,668,624$ 9,069,734$ 1,412,865$ 42,067,899$
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, 2008
Amounts reported for governmental activities in the
statement of activities (page 22-23) are different because:
Net changes in fund balances - total governmental funds (page 26)719,859$
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.8,404,940
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.(95,560)
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.3,409,808
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.(583,915)
Some expenses reported in the statement of activities do not require the
use of current financial resources (OPEB obligations, accrued interest
and amortization on debt and compensated absences payable) and,
therefore, are not reported as expenditures in governmental funds.(521,065)
Change in net assets of governmental activities (page 23)11,334,067$
The accompanying notes are an integral part of these financial statements.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2008
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Assets:
Current assets:
Cash and cash equivalents 73,546$ 22,880$ 994,383$ 13,031$ 46,334$ 1,150,174$
Investments - unrestricted 5,661,316 - - - 3,936,326 9,597,642
Investments - restricted 8,116,762 - - - - 8,116,762
Interest receivable 69,459 - - - 29,962 99,421
Accounts receivable, net 3,452,033 1,500 - 1,960 130,361 3,585,854
Special assessments receivable241,307 - - - - 241,307
Due from other funds - 1,100,000 185,000 - 15,000 1,300,000
Due from other governments 5,956 - - - - 5,956
Prepaid expenses 344,406 - - - - 344,406
Inventory 37,157 1,088,372 - 48,973 11,436 1,185,938
Total current assets 18,001,942 2,212,752 1,179,383 63,964 4,169,419 25,627,460
Noncurrent assets:
Deferred charges 114,108 - 1,859 1,848 - 117,815
Net capital assets 53,034,600 1,239,571 1,938,106 5,194,083 3,942,507 65,348,867
Total noncurrent assets 53,148,708 1,239,571 1,939,965 5,195,931 3,942,507 65,466,682
Total assets 71,150,650 3,452,323 3,119,348 5,259,895 8,111,926 91,094,142
Liabilities:
Current liabilities:
Accounts payable 525,986 351,040 557 54,372 313,064 1,245,019
Salaries payable 50,133 48,636 373 41,495 73,830 214,467
Accrued interest payable 326,848 - 20,304 34,974 4,121 386,247
Contracts payable 173,759 - - - - 173,759
Due to other funds - - - 1,100,000 15,000 1,115,000
Due to other governments 10,100 136,728 954 6,272 7,474 161,528
Deposits payable 112,216 - - 11,205 - 123,421
Unearned revenue - 3,865 11 42,674 56,578 103,128
Net OPEB obligation 10,547 6,498 - 9,155 10,974 37,174
Compensated absences payable 82,478 91,744 - 118,427 124,354 417,003
Bonds payable - current 2,045,000 - 120,000 515,000 225,000 2,905,000
Total current liabilities 3,337,067 638,511 142,199 1,933,574 830,395 6,881,746
Noncurrent liabilities:
Compensated absences payable123,718 137,617 - 177,640 186,530 625,505
Bonds payable, net of
unamortized discounts 21,734,075 - 839,228 1,135,590 - 23,708,893
Total noncurrent liabilities 21,857,793 137,617 839,228 1,313,230 186,530 24,334,398
Total liabilities 25,194,860 776,128 981,427 3,246,804 1,016,925 31,216,144
Net assets:
Invested in capital assets,
net of related debt 37,372,287 1,239,571 978,878 3,543,493 3,717,507 46,851,736
Restricted for debt service - - 954,486 - - 954,486
Unrestricted 8,583,503 1,436,624 204,557 (1,530,402) 3,377,494 12,071,776
Total net assets 45,955,790$ 2,676,195$ 2,137,921$ 2,013,091$ 7,095,001$ 59,877,998$
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, 2008
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Operating revenues:
Sales - liquor -$ 12,121,791$ -$ 145,904$ -$ 12,267,695$
Sales - retail - - 4,991 233,473 42,792 281,256
Sales - utilities 13,268,450 - - - - 13,268,450
Sales - concessions - - 127,087 243,848 63,280 434,215
Memberships - - 450,720 110,313 87,618 648,651
Admissions - - 313,735 315,013 647,155 1,275,903
Building rental - - 26,753 85,603 1,404,096 1,516,452
Rental of equipment - - - 361,566 95,460 457,026
Greens fees - - - 1,846,317 177,109 2,023,426
Other fees 276,278 - 2,102 338,547 999,708 1,616,635
Total operating revenues 13,544,728 12,121,791 925,388 3,680,584 3,517,218 33,789,709
Operating expenses:
Cost of sales and services 22,265 8,940,015 32,754 350,320 78,187 9,423,541
Personal services 1,506,565 1,329,629 269,949 1,748,175 1,982,714 6,837,032
Contractual services 5,651,008 437,691 131,058 559,521 1,460,541 8,239,819
Commodities 829,080 76,209 87,700 358,704 388,612 1,740,305
Central Services 504,598 193,091 27,482 113,474 163,231 1,001,876
Depreciation 1,562,906 69,874 196,575 407,186 418,964 2,655,505
Total operating expenses10,076,422 11,046,509 745,518 3,537,380 4,492,249 29,898,078
Operating income (loss)3,468,306 1,075,282 179,870 143,204 (975,031) 3,891,631
Nonoperating revenues (expenses):
Intergovernmental 120,982 - - - - 120,982
Investment income 225,305 - - - 382,007 607,312
Donations - - - - 26,474 26,474
Interest and fiscal charges (548,859) - (41,040) (70,763) (8,354) (669,016)
Amortization of bond discount 35 - (1,105) (4,339) (2,246) (7,655)
Gain (loss) on sale of
capital asset (565) (2,714) - 14,505 - 11,226
Miscellaneous 168,521 808 - - - 169,329
Total nonoperating
revenues (expenses)(34,581) (1,906) (42,145) (60,597) 397,881 258,652
Income (loss) before transfers 3,433,725 1,073,376 137,725 82,607 (577,150) 4,150,283
Transfers:
Transfers in - - - 170,000 240,000 410,000
Transfers out (100,000) (1,277,800) - - - (1,377,800)
Total transfers (100,000) (1,277,800) - 170,000 240,000 (967,800)
Change in net assets 3,333,725 (204,424) 137,725 252,607 (337,150) 3,182,483
Net assets - January 1 42,622,065 2,880,619 2,000,196 1,760,484 7,432,151 56,695,515
Net assets - December 31 45,955,790$ 2,676,195$ 2,137,921$ 2,013,091$ 7,095,001$ 59,877,998$
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, 2008
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Cash flows from operating activities:
Receipts from customers and users13,388,426$ 12,120,537$ 925,399$ 3,688,979$ 3,536,453$ 33,659,794$
Payment to suppliers (6,919,058) (9,563,540) (278,381) (1,380,958) (1,903,262) (20,045,199)
Payment to employees (1,501,021) (1,282,714) (269,952) (1,704,393) (1,924,214) (6,682,294)
Donations - - - - 26,474 26,474
Miscellaneous revenue 168,521 808 - - - 169,329
Net cash provided by
(used in) operating activities 5,136,868 1,275,091 377,066 603,628 (264,549) 7,128,104
Cash flows from noncapital financing activities:
State grant 120,982 - - - - 120,982
Transfer from other funds - - - 170,000 240,000 410,000
Transfer to other funds (100,000) (1,277,800) - - - (1,377,800)
Proceeds from interfund borrowing - - 270,000 100,000 15,000 385,000
Payment of interfund borrowing (140,000) (100,000) (185,000) (130,000) (15,000) (570,000)
Net cash provided by (used in)
noncapital financing activities (119,018) (1,377,800) 85,000 140,000 240,000 (1,031,818)
Cash flows from capital and related financing activities:
Proceeds from capital debt 14,067,158 - - - - 14,067,158
Acquisition of capital assets (9,518,872) - - (154,960) (480,113) (10,153,945)
Proceeds from sale
of capital assets 874 - - 14,505 - 15,379
Principal paid on bonds (1,485,000) - (115,000) (510,000) (220,000) (2,330,000)
Interest paid on bonds (459,984) - (43,221) (81,503) (11,230) (595,938)
Net cash provided by (used in)
capital and related
financing activities 2,604,176 - (158,221) (731,958) (711,343) 1,002,654
Cash flows from investing activities:
Proceeds from sale of investments - - - - 352,680 352,680
Purchase of investments (7,753,978) - - - - (7,753,978)
Investment income 201,614 - - - 247,320 448,934
Net cash flows provided by
(used in) investing activities (7,552,364) - - - 600,000 (6,952,364)
Net increase (decrease)
in cash and cash equivalents 69,662 (102,709) 303,845 11,670 (135,892) 146,576
Cash and cash equivalents -
January 1 3,884 125,589 690,538 1,361 182,226 1,003,598
Cash and cash equivalents -
December 31 73,546$ 22,880$ 994,383$ 13,031$ 46,334$ 1,150,174$
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, 2008
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) 3,468,306$ 1,075,282$ 179,870$ 143,204$ (975,031)$ 3,891,631$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 1,562,906 69,874 196,575 407,186 418,964 2,655,505
Donations - - - - 26,474 26,474
Miscellaneous revenue 168,521 808 - - - 169,329
Changes in assets and liabilities:
Decrease (increase) in receivables(118,432) (1,500) - (1,395) 17,615 (103,712)
Decrease (increase) in
special assessments (34,507) - - - - (34,507)
Decrease (increase) in
due from other governments (3,363) - - - - (3,363)
Decrease (increase) in inventory(18,401) (48,923) - (6,442) 2,557 (71,209)
Decrease (increase) in
prepaid items (33,342) - - - - (33,342)
Increase (decrease) in
accounts payable (31,248) 125,494 304 2,560 183,873 280,983
Increase (decrease) in
salaries payable 19,496 10,808 (3) 10,281 22,968 63,550
Increase (decrease) in
contracts payable 170,361 - - - - 170,361
Increase (decrease) in
due to other governments 523 6,895 309 1,351 879 9,957
Increase (decrease) in deposits - - - 3,592 - 3,592
Increase (decrease) in
unearned revenue - 246 11 9,790 1,620 11,667
Increase (decrease) in
net OPEB obligation 10,547 6,498 - 9,155 10,974 37,174
Increase (decrease) in
compensated absences (24,499) 29,609 - 24,346 24,558 54,014
Total adjustments 1,668,562 199,809 197,196 460,424 710,482 3,236,473
Net cash provided by
(used in) operating activities 5,136,868$ 1,275,091$ 377,066$ 603,628$ (264,549)$ 7,128,104$
Noncash investing activities:
Increase (decrease) in
fair value of investments (20,479)$ -$ -$ -$ 132,047$ 111,568$
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, 2008
Agency Funds
Assets
Cash 48,625$
Investments 245,000
Total assets 293,625$
Liabilities
Accounts payable 29,621$
Salaries payable 4,187
Due to other governmental units 259,817
Total liabilities 293,625$
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
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
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, 2008
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, 2008
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, 2008
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, 2008
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, 2008 are planned to be eliminated in 2009. 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, 2008
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, 2008
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 $10,000 (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, 2008
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, 2008
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, 2008
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.
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 49,880,000$
Plus: issuance premium 36,553
Less: issuance discount (273,307)
Less: deferred charge for issuance costs (265,423)
Accrued interest payable 751,478
OPEB obligation 270,330
Compensated absences 3,511,210
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities53,910,841$
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:
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
43
Capital outlay 13,468,614$
Depreciation expense (5,063,674)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental funds8,404,940$
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 PIR bonds 7,755,000$
Less issuance costs (45,237)
Less discounts (35,848)
Principal repayments:
Tax increment debt (5,650,000)
General obligation debt (570,000)
Permanent improvement revolving debt (155,000)
Public project revenue debt (715,000)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities583,915$
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:
OPEB obligation (270,330)$
Compensated absences (248,698)
Accrued interest 94,264
Amortization of issuance costs (60,570)
Amortization of bond discounts (35,731)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities(521,065)$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
44
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits 1,223,983$
Cash on hand 19,085
Investments 62,550,032
63,793,100$
Cash and investments are presented in the financial statements as follows:
Cash and cash equivalents - Statement of Net Assets 1,194,443$
Investments - Statement of Net Assets 49,571,183
Restricted investments - Statement of Net Assets 12,733,849
Cash and investments - Statement of Fiduciary Net Assets 293,625
63,793,100$
The City had restricted investments of $12,733,849 as of December 31, 2008 that
represent unspent bond proceeds to be used for construction projects.
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
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
45
account at a trust department of a commercial bank or other financial institution
that is not owned or controlled by the financial institution furnishing the collateral.
The City’s investment policy does not contain further restrictions on the types of
collateral required.
At year-end, the carrying amount of the City’s deposits was $1,223,983 while the
balance on the bank records was $1,295,419. At December 31, 2008, all
deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 5 to 10 10 +Total
U.S. TreasuriesN/AN/A 30,806$ -$ 146,730$ 728,618$ 906,154$
GNMA N/AN/A - - - 40,844 40,844
SBA NotesAAA/AaaS&P/Mdy's - 10,182 292,670 392,452 695,304
U.S. AgenciesP-1Mdy's4,978,274 - - - 4,978,274
U.S. AgenciesAAA/AaaS&P/Mdy's6,744,416 11,522,231 2,049,440 3,433,913 23,750,000
Municipals N/RN/A - 30,083 - - 30,083
Municipals AS&P - 10,152 - - 10,152
MunicipalsAAA/AAAS&P/Fitch10,193 41,222 75,825 - 127,240
CommercialA3/P2/S&P/Mdy's/
paper F1Fitch 990,150 - - - 990,150
Negotiable CD'sN/RN/A12,244,432 384,088 - - 12,628,520
Interfund DebtN/RN/A - 1,400,000 - - 1,400,000
24,998,271$ 13,397,958$ 2,564,665$ 4,595,827$ 45,556,721
Money Market*AAAS&P 12,722,910
4M Fund*N/RN/A 4,270,401
Total investments 62,550,032$
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, 2008
46
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 $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 15%, 9% and 19% in securities issued by FHLB, FHLMC and FNMA,
respectively.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
47
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2008 is as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land 15,872,364$ 109,000$ -$ 15,981,364$
Investment in joint venture 1,452,465 - - 1,452,465
Construction in progress 15,380,765 10,880,620 (12,848,795) 13,412,590
Total capital assets not being depreciated32,705,594 10,989,620 (12,848,795) 30,846,419
Capital assets being depreciated:
Land improvements 21,699,762 - - 21,699,762
Buildings and structures 30,008,937 5,009,228 - 35,018,165
Furniture and office equipment 2,606,162 23,864 (14,362) 2,615,664
Vehicles and equipment 13,535,156 969,996 (616,415) 13,888,737
Infrastructure 63,126,263 6,946,368 (1,069,117) 69,003,514
Parks 12,708,329 2,378,333 (417,380) 14,669,282
Total capital assets being depreciated143,684,609 15,327,789 (2,117,274) 156,895,124
Less accumulated depreciation for:
Land improvements (10,776,848) (794,374) - (11,571,222)
Buildings and structures (8,871,510) (893,154) - (9,764,664)
Furniture and office equipment (1,067,702) (201,967) 14,362 (1,255,307)
Vehicles and equipment (6,635,181) (1,140,217) 529,787 (7,245,611)
Infrastructure (43,543,416) (1,573,883) 1,060,185 (44,057,114)
Parks (5,755,569) (460,079) 417,380 (5,798,268)
Total accumulated depreciation(76,650,226) (5,063,674) 2,021,714 (79,692,186)
Total capital assets being depreciated, net 67,034,383 10,264,115 (95,560) 77,202,938
Governmental activities capital assets, net 99,739,977$ 21,253,735$ (12,944,355)$ 108,049,357$
Certain capital assets were reclassified to different categories during the year, and these
reclassifications are reflected in the “Increases” and “Decreases” columns above.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
48
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land 1,088,965$ -$ -$ 1,088,965$
Construction in progress 4,580,127 9,705,696 (4,316,859) 9,968,964
Total capital assets not being depreciated5,669,092 9,705,696 (4,316,859) 11,057,929
Capital assets being depreciated:
Land improvements & golf course 8,120,479 - (39,865) 8,080,614
Buildings and structures 15,999,450 261,422 (158,217) 16,102,655
Furniture and office equipment 149,436 - (27,756) 121,680
Vehicles and equipment 5,192,750 189,471 (466,943) 4,915,278
Utility infrastructure 64,413,092 4,316,859 (281,781) 68,448,170
Lease property capital lease 468,580 - - 468,580
Total capital assets being depreciated 94,343,787 4,767,752 (974,562) 98,136,977
Less accumulated depreciation for:
Land improvements & golf course (4,078,349) (298,924) 39,865 (4,337,408)
Buildings and structures (9,184,164) (590,338) 158,217 (9,616,285)
Furniture and office equipment (125,053) (14,355) 27,756 (111,652)
Vehicles and equipment (2,924,078) (362,380) 460,146 (2,826,312)
Utility infrastructure (25,378,075) (1,389,508) 281,781 (26,485,802)
Lease property capital lease (468,580) - - (468,580)
Total accumulated depreciation(42,158,299) (2,655,505) 967,765 (43,846,039)
Total capital assets being depreciated, net 52,185,488 2,112,247 (6,797) 54,290,938
Business-type activities capital assets, net 57,854,580$ 11,817,943$ (4,323,656)$ 65,348,867$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
49
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 489,047$
Public safety 619,626
Public works 2,330,919
Parks 1,624,082
Total depreciation expense - governmental activities5,063,674$
Business-type activities:
Utilities 1,562,906$
Liquor 69,874
Aquatic Center 196,575
Golf Course 407,186
Arena 286,033
Art Center 30,206
Edinborough Park/Centennial Lakes 102,725
Total depreciation expense - business-type activities2,655,505$
CONSTRUCTION COMMITMENTS
At December 31, 2008, 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
08-1 EngCountry Club Reconstruction 14,198,279$ 6,491,163$
08-6 EngStreet/Sidewalk Reconstruction2,074,564 63,805
08-11 EngStreet/Sidewalk Reconstruction 168,509 34,562
08-12 EngStreet/Sidewalk Reconstruction 615,695 57,006
07-4 PWNew Well 297,890 4,593
08-3 PWNew Well 373,013 9,808
08-5 PWWell Rehab 328,328 1,607
6,662,544$
Note 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2008: 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, 2008
50
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, 2008, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/08
Tax Increment Bonds:
Tax Increment Bonds, Series 2000A4.30-4.80%9/6/20002/1/20112,620,000$ 920,000$
Tax Increment Bonds, Series 2002B 3.00%8/5/20022/1/20121,400,000 1,400,000
Tax Increment Refunding Bonds,
Series 2005B 3.00%7/19/20052/1/200910,520,000 3,235,000
Tax Increment Taxable Refunding
Bonds, Series 2005C 3.75-4.25%7/19/20052/1/20096,220,000 1,885,000
Tax Increment Refunding Bonds,
Series 2005D 3.00-3.40%7/19/20052/1/20133,505,000 2,575,000
Total Tax Increment Bonds24,265,000 10,015,000
General Obligation Bonds:
General Obligation - Park &
Recreation Refunding, 2005A 3.50-4.00%7/19/20052/1/20175,375,000 4,555,000
General Obligation - Capital
Improvement Plan, 2007A 4.00-4.25%5/24/20072/1/20285,865,000 5,865,000
Total General Obligation Bonds11,240,000 10,420,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement
Revolving, 2005E 3.00-3.75%9/13/20052/1/20161,460,000 1,145,000
Permanent Improvement
Revolving, 2007C 3.60-4.00%5/24/20072/1/20195,870,000 5,870,000
Permanent Improvement
Revolving, 2008B 3.00-4.00%8/28/20082/1/20207,755,000 7,755,000
Total PIR Bonds 15,085,000 14,770,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2002 4.00-5.25%1/1/20022/1/202112,410,000 9,625,000
Public Project Revenue, Series 2005 3.50-4.13%9/13/20055/1/20265,425,000 5,050,000
Total Public Project Revenue Bonds17,835,000 14,675,000
Total bonded indebtedness - governmental activities 68,425,000$ 49,880,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
51
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/08
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70-4.45%5/3/1999 1/1/20133,270,000$ 1,675,000$
Recreational Facility Bonds, Series 2001A2.25-4.65%11/1/20011/1/20174,620,000 1,170,000
Utility Revenue Bonds, Series 1999A 3.20-4.20%5/3/1999 2/1/20093,600,000 420,000
Utility Revenue Bonds, Series 2003C 1.10-3.55%3/1/2003 2/1/20133,200,000 1,725,000
Utility Revenue Bonds, Series 2007B 4.00%5/24/20072/1/20178,210,000 7,440,000
Utility Revenue Bonds, Series 2008A 3.00-4.25%8/28/20082/1/201913,985,000 13,985,000
Total Revenue Bonds36,885,000 26,415,000
Total bonded indebtedness - business-type activities36,885,000$ 26,415,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2009 5,890,000$ 244,236$ 630,000$ 397,869$ 150,000$ 513,708$
2010 805,000 125,820 660,000 374,294 655,000 520,278
2011 840,000 94,359 680,000 349,806 1,330,000 486,944
2012 1,930,000 48,445 705,000 324,494 1,375,000 442,069
2013 550,000 9,350 730,000 297,631 1,415,000 395,269
2014-2018 - - 3,510,000 1,036,676 7,495,000 1,185,156
2019-2023 - - 1,575,000 569,807 2,350,000 84,200
2024-2028 - - 1,930,000 210,947 - -
Total 10,015,000$ 522,210$ 10,420,000$ 3,561,524$ 14,770,000$ 3,627,624$
Principal Interest Principal Interest
2009 745,000$ 665,193$ 2,905,000$ 906,314$
2010 780,000 632,880 2,570,000 846,283
2011 810,000 598,880 2,675,000 754,562
2012 850,000 561,885 2,780,000 656,742
2013 885,000 521,695 2,875,000 553,066
2014-2018 5,095,000 1,919,000 11,015,000 1,388,015
2019-2023 4,380,000 623,444 1,595,000 33,894
2024-2028 1,130,000 71,363 - -
Total14,675,000$ 5,594,340$ 26,415,000$ 5,138,876$
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, 2008
52
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2008, was as follows:
Beginning EndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment15,665,000$ -$ (5,650,000)$ 10,015,000$ 5,890,000$
General obligation 10,990,000 - (570,000) 10,420,000 630,000
PIR 7,170,000 7,755,000 (155,000) 14,770,000 150,000
Public project revenue 15,390,000 - (715,000) 14,675,000 745,000
Less deferred amounts:
Discount on bonds (284,850) (35,848) 47,391 (273,307) -
Premiums 48,213 - (11,660) 36,553 -
Total bonds payable48,978,363 7,719,152 (7,054,269) 49,643,246 7,415,000
Compensated absences 3,262,512 1,576,075 (1,327,377) 3,511,210 1,404,484
Governmental activity
Long-term liabilities52,240,875$ 9,295,227$ (8,381,646)$ 53,154,456$ 8,819,484$
Business-type activities:
Bonds payable:
Revenue bonds14,760,000$ 13,985,000$ (2,330,000)$ 26,415,000$ 2,905,000$
Less deferred amounts:
Discount on bonds (25,646) - 8,142 (17,504) -
Premiums 74,066 155,459 (13,128) 216,397 -
Total bonds payable 14,808,420 14,140,459 (2,334,986) 26,613,893 2,905,000
Compensated absences 988,494 348,881 (294,867) 1,042,508 417,003
Business-type activity
Long-term liabilities 15,796,914$ 14,489,340$ (2,629,853)$ 27,656,401$ 3,322,003$
For governmental activities, compensated absences are generally liquidated by the general
fund.
The City issued $13,985,000 of General Obligation Revenue bonds, Series 2008A 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 $7,755,000 of General Obligation Permanent Improvement Revolving
(PIR) bonds, Series 2008B to provide financing for infrastructure improvements. The City
anticipates that special assessments to benefitted properties will be sufficient to pay future
debt service on this issue.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
53
Note 6 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness
payable principally from property taxes. The City of Edina's legal debt margin for 2008 is
computed as follows:
December 31, 2008
Market Value (after fiscal disparities)10,079,498,900$
Debt Limit (3% of Market Value)302,384,967$
Amount of debt applicable to debt limit:
Total bonded debt 76,295,000$
Less:
Tax increment bonds (10,015,000)
Public improvement revolving bonds (14,770,000)
Revenue bonds (26,415,000)
Total debt applicable to debt limit 25,095,000$
Legal debt margin 277,289,967$
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, 2008
54
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, 2008
55
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 6.0%, respectively, of their covered salary in 2008. PEPFF members were
required to contribute 8.6% of their covered salary in 2008. That rate will increase to
9.4% in 2009. The City of Edina is required to contribute the following percentages of
annual covered payroll: 11.78% for Basic Plan PERF members, 6.5% for Coordinated
Plan PERF members, and 12.9% for PEPFF members. Employer contribution rates for
the Coordinated Plan and PEPFF will increase to 6.75% and 14.1% respectively,
effective January 1, 2009. The City’s contributions to the Public Employees Retirement
Fund for the years ending December 31, 2008, 2007, and 2006 were $860,091,
$785,482, and $696,014, respectively. The City’s contributions to the Public Employees
Police and Fire Fund for the years ending December 31, 2008, 2007, and 2006 were
$855,910, $738,399, and $632,892, respectively. The City’s contributions were equal to
the contractually required contributions for each year as set by state statute.
Note 8 OTHER POST-EMPLOYMENT BENEFITS PLAN
A. Plan Description
In 2008, the City prospectively implemented the requirement of a new accounting
pronouncement, GASB Statement No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other than Pensions.
The City provides post-employment insurance benefits to certain eligible employees
through City’s Other Post-Employment Benefits Plan, a single-employer defined benefit
plan administered by the City. All post-employment benefits are based on contractual
agreements with employee groups. These contractual agreements do not include any
specific contribution or funding requirements. These benefits are summarized as follows:
Post-Employment Insurance Benefits – All retirees of the City have the option
under state law to continue their medical insurance coverage through the City
from the time of retirement until the employee reaches the age of eligibility for
Medicare. For members of all employee groups, the retiree must pay the full
premium to continue coverage for medical and dental insurance.
The City is legally required to include any retirees for whom it provides health
insurance coverage in the same insurance pool as its active employees, whether
the premiums are paid by the City or the retiree. Consequently, participating
retirees are considered to receive a secondary benefit known as an “implicit rate
subsidy.” This benefit relates to the assumption that the retiree is receiving a
more favorable premium rate than they would otherwise be able to obtain if
purchasing insurance on their own, due to being included in the same pool with
the City’s younger and statistically healthier active employees.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
56
B. Funding Policy
The required contribution is based on projected pay-as-you-go financing requirements,
with additional amounts to pre-fund benefits as determined annually by the City.
C. Annual OPEB Cost and Net OPEB Obligation
The City’s annual OPEB cost (expense) is calculated based on annual required
contributions (ARC) of the City, an amount determined on an actuarially determined basis
in accordance with the parameters of GASB Statement Nos. 43 and 45. The ARC
represents a level funding that, if paid on an ongoing basis, is projected to cover normal
costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed 30 years. The following table shows the components of the City’s
annual OPEB cost for the year, the amount actually contributed to the plan, and the
changes in the City’s net OPEB obligation to the plan:
Annual required contribution 439,466$
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB cost (expense)439,466
Contributions made (131,962)
Increase in net OPEB obligation 307,504
Net OPEB obligation - beginning of year -
Net OPEB obligation - end of year 307,504$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for the year are as follows:
Percentage of
Fiscal AnnualEmployerAnnual OPEBNet OPEB
Year Ended OPEB Cost Contribution Cost Contributed Obligation
December 31, 2008439,466$ 131,962$ 30.0%307,504$
D. Funded Status and Funding Progress
As of January 1, 2008, the most recent actuarial valuation date, the plan was zero
percent funded. The actuarial accrued liability for benefits was $4,638,477, and the
actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability
(UAAL) of $4,638,477. The covered payroll (annual payroll of active employees covered
by the plan) was $17,071,318, and the ratio of the UAAL to the covered payroll was 27.2
percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability occurrence of events far into the future.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
57
Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and ARCs of the
employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The Schedule of Funding
Progress immediately following the notes to the basic financial statements presents multi-
year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2008 actuarial valuation, the projected unit credit actuarial cost method
was used. The actuarial assumptions included: a 4.5 percent investment rate of return
(net of administrative expenses) based on the City’s own investments; an annual
healthcare cost trend rate of 10.0 percent initially, reduced by decrements to an ultimate
rate of 5.0 percent after ten years. The UAAL is being amortized on a level dollar basis
over a closed period. The remaining amortization period at January 1, 2008 was 30
years.
Note 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of internal balances as of December 31, 2008, is as follows:
Payable Fund Amount
HRA General 18,907$
Police Special Revenue Construction 575,000
Debt Service General 200,000
CDBG 37,000
Construction 150,000
Liquor Golf Course 1,100,000
Aquatic Center Construction 185,000
Art Center Arena 15,000
Total 2,280,907$
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, 2008
58
Debt Nonmajor
General Service Construction Golf Course Business-type Total
Transfer out:
General Fund -$ -$ 450,000$ -$ -$ 450,000$
HRA Fund - 6,095,694 - - - 6,095,694
Construction Fund - 445,091 - - 25,000 470,091
Utilities Fund - - 100,000 - - 100,000
Liquor Fund 742,800 - 150,000 170,000 215,000 1,277,800
742,800$ 6,540,785$ 700,000$ 170,000$ 240,000$ 8,393,585$
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 $742,800, $170,000, $135,000 and $80,000 to the general
fund, golf course 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 $6,095,694 of tax increment revenues to the debt service fund
to pay principal and interest on outstanding tax increment debt.
4. The general fund, utilities fund, and liquor fund transferred $50,000, $100,000, and
$150,000, respectively, to the construction fund to fund the capital improvement program,
as planned in the 2008 budget.
5. The construction fund transferred $445,091 to the debt service fund to pay a portion of
the debt service on the gymnasium bonds, and as part of a transaction to record
capitalized interest.
6. The general fund transferred $400,000 of the 2007 unreserved and undesignated fund
balance to the construction fund according to the City’s fund balance policies to fund the
capital improvement program.
Note 10 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1200 (50th and France Commercial Area) is a redevelopment district established
in 1974 pursuant to Minnesota Statutes with a termination date of 2009.
District number 1201 (Southeast Edina Redevelopment District – Edinborough) is a
redevelopment district established in 1977 pursuant to Minnesota Statutes with a termination
date of 2009.
District number 1202 (Grandview Commercial Area) is a redevelopment district established in
1984 pursuant to Minnesota Statutes with a termination date of 2010.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
59
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a
redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination
date of 2016.
District number 1207 (70th and Cahill Economic Development District) is an economic district
established in 1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment
previously collected is available for expenditures within the larger development district that
includes the Wooddale – Valley View commercial area. Tax capacity and debt for this district is
not included in the following schedule as county reports no longer indicate captured tax capacity
for this district and no debt is outstanding.
The following table reflects values as of December 31, 2008:
TIF #1200TIF #1201TIF #1202TIF #1203 Total
Original tax capacity 112,826$ 94,319$ 164,885$ 229,691$ 601,721$
Current tax capacity 1,614,619 3,157,281 1,555,070 4,045,888 10,372,858
Tax capacity change 1,501,793 3,062,962 1,390,185 3,816,197 9,771,137
Captured tax capacity value:
Retained captured tax capacity 1,501,793$ 3,062,962$ 1,390,185$ 3,816,197$ 9,771,137$
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 7,317,555 28,199,724 63,322,279
Outstanding bonds at
December 31, 2008 -$ -$ 2,320,000$ 7,695,000$ 10,015,000$
Note 11 CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
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, 2008
60
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 2008.
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, 2008.
D. TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of
the State Auditor (OSA). Any disallowed claims or misuse of tax increments could
become a liability of the applicable fund. Management is not aware of any instances of
noncompliance which would have a material effect on the financial statements.
Note 12 CONDUIT DEBT OBLIGATION
As of December 31, 2008, the City of Edina had 4 series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $31,860,000. 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, 2008
61
Note 13 JOINT VENTURE
The City is a participant with the City of Bloomington, the City of Eden Prairie and the
Metropolitan Airport Commission in a joint venture to construct and operate a facility to be used
for the training of law enforcement officers and firefighters. The South Metro Public Safety
Training Facility Association (PSTF) is governed by a Board consisting of one representative
from each Member. On dissolution of the Association, the Facility shall revert to the City of Edina,
and all remaining assets shall be divided among the members based on the Cost Sharing
Formula. In accordance with the joint venture agreement, each member of the association will
share in the cost of the construction and operation based on the Cost Sharing Formula. The
City’s net investment is reported in the governmental activities capital assets. The City’s equity
interest in the PSTF was $1,452,465. Complete financial statements for PSTF can be obtained
from the City of Edina, 4801 West 50th Street, Edina, MN 55424.
Note 14 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, 2008,
the City paid a total of $35,044 in membership fees to the PSTF.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2008
62
Note 15 DESIGNATIONS AND RESERVATIONS OF FUND BALANCE
At December 31, 2008 the City had designated and reserved portions of its various fund
balances through legal restriction and City Council authorization. A summary of such
designations and reservations is as follows:
December 31, 2008
General Fund:
Reserved for prepaid items 13,982$
Designated for park dedication 178,295
Designated for investments 11,385
Designated for equipment replacement 2,604,310
Designated for compensated absences 1,404,484
Designated for cash flow 9,473,711
Debt Service Fund:
Reserved for debt service 3,668,624
Construction Fund:
Reserved for encumbrances 3,400,955
Reserved for special projects 182,207
Reserved for construction projects 1,216,132
Designated for Todd Park assessments 165,000
Designated for capital improvements 4,105,440
26,424,525$
Note 15 SUBSEQUENT EVENTS
On April 29, 2009, the City issued $14,000,000 General Obligation Capital Improvement Bonds,
Series 2009A to finance the acquisition and a portion of the rehabilitation of a building to be used
as a new public works facility. The interest rate on the bonds ranges from 3.0-4.4 percent and the
final maturity date is February 1, 2030.
On April 29, 2009, the City issued $2,240,000 General Obligation Bonds, Series 2009B to finance
a current refunding of the 2010 through 2013 maturities of the City’s $3,270,000 General
Obligation Refunding Bonds, Series 1999B and the 2010 through 2017 maturities of the
$4,620,000 General Obligation Recreational Facility Bonds, Series 2001A and to fund the
purchase of various capital equipment. The current refundings were undertaken to reduce total
debt service payments by $124,874 and resulted in an economic gain of $117,750.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2008
Variance with
2008 Final Budget -
Actual Over
Original Final Amounts (Under)
Revenues:
General property taxes:
Current 20,229,404$ 20,229,404$ 19,967,819$ (261,585)$
Penalties and interest 12,000 12,000 15,476 3,476
Total general property taxes 20,241,404 20,241,404 19,983,295 (258,109)
Licenses and permits:2,715,050 2,715,050 2,885,781 170,731
Intergovernmental:
Federal:35,000 35,000 18,937 (16,063)
State:
Municipal state aid 195,000 195,000 195,000 -
Other 50,000 50,000 148,321 98,321
State aid - police 345,000 345,000 342,661 (2,339)
Health programs 120,000 120,000 120,130 130
Total intergovernmental 745,000 745,000 825,049 80,049
Charges for services:
Building Department 300 300 8,761 8,461
City Clerk 5,000 5,000 110,936 105,936
Fire Department 28,000 28,000 21,975 (6,025)
Ambulance fees 1,500,000 1,500,000 1,522,637 22,637
Police Department 230,000 230,000 344,171 114,171
Engineering 149,500 149,500 274,965 125,465
Health Department 7,500 7,500 7,080 (420)
Planning Department 26,000 26,000 43,290 17,290
Housing Foundation Contract 24,000 24,000 30,533 6,533
HRA Services 20,000 20,000 32,122 12,122
Park Registration 94,000 94,000 98,026 4,026
Senior Center 100,000 100,000 99,259 (741)
Other fees 10,000 10,000 2,998 (7,002)
50th & France Assessment 69,000 69,000 69,000 -
Charges to other funds 374,088 374,088 374,088 -
Total charges for services 2,637,388 2,637,388 3,039,841 402,453
Fines and forfeits 925,000 925,000 968,893 43,893
Miscellaneous:
Rental of property 308,000 308,000 254,437 (53,563)
Investment income 275,000 275,000 260,249 (14,751)
Donations 10,000 10,000 13,171 3,171
Other 5,000 5,000 5,562 562
Total miscellaneous 598,000 598,000 533,419 (64,581)
Total revenues 27,861,842 27,861,842 28,236,278 374,436
Budgeted Amounts
63
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2008
Variance with
2008Final Budget -
ActualUnder
Original Final Amounts (Over)
Expenditures:
General government:
Mayor and Council:
Current:
Personal services 45,704$ 45,704$ 45,768$ (64)$
Contractual services 12,305 12,305 6,253 6,052
Commodities 1,165 1,165 1,181 (16)
Central services 31,356 31,356 30,935 421
Total mayor and council 90,530 90,530 84,137 6,393
Administration:
Current:
Personal services 842,570 842,570 791,145 51,425
Contractual services 189,770 189,770 147,202 42,568
Commodities 4,780 4,780 1,243 3,537
Central services 74,280 74,280 69,051 5,229
Total current 1,111,400 1,111,400 1,008,641 102,759
Capital outlay 6,360 6,360 2,274 4,086
Total administration 1,117,760 1,117,760 1,010,915 106,845
Planning:
Current:
Personal services 342,016 342,016 350,545 (8,529)
Contractual services 68,425 68,425 44,415 24,010
Commodities 1,900 1,900 1,137 763
Central services 49,404 49,404 46,247 3,157
Total current 461,745 461,745 442,344 19,401
Capital outlay 2,010 2,010 1,323 687
Total planning 463,755 463,755 443,667 20,088
Finance:
Current:
Personal services 500,148 500,148 509,076 (8,928)
Contractual services 105,600 105,600 95,232 10,368
Commodities 3,400 3,400 2,363 1,037
Central services 59,028 59,028 54,605 4,423
Total current 668,176 668,176 661,276 6,900
Capital outlay 6,300 6,300 2,978 3,322
Total finance 674,476 674,476 664,254 10,222
Election:
Current:
Personal services 137,235 137,235 246,470 (109,235)
Contractual services 31,469 31,469 12,777 18,692
Commodities 18,828 18,828 8,311 10,517
Central services 16,536 16,536 14,356 2,180
Total current 204,068 204,068 281,914 (77,846)
Capital outlay - - 15,319 (15,319)
Total election 204,068 204,068 297,233 (93,165)
Budgeted Amounts
64
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2008
Variance with
2008Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Assessing:
Current:
Personal services636,577$ 636,577$ 645,048$ (8,471)$
Contractual services 113,300 113,300 91,967 21,333
Commodities 3,000 3,000 2,872 128
Central services 69,372 69,372 64,702 4,670
Total current 822,249 822,249 804,589 17,660
Capital outlay 12,695 12,695 1,265 11,430
Total assessing 834,944 834,944 805,854 29,090
Legal and court services:
Current:
Contractual services 348,590 348,590 321,149 27,441
Contingencies:
Current:
Contractual services 126,900 126,900 90,328 36,572
Commodities - - 1,757 (1,757)
Total contingencies 126,900 126,900 92,085 34,815
City's share of special assessment:
Current:
Contractual services 30,000 30,000 30,939 (939)
Human Rights Commission:
Current:
Contractual services 90,744 90,744 101,435 (10,691)
Suburban Rate Authority:
Current:
Contractual services 4,000 4,000 4,000 -
Edina Resource Center
Current:
Contractual services 36,113 36,113 36,113 -
Human Services Planning & Coordination
Current:
Contractual services 23,886 23,886 11,943 11,943
Records management:
Current:
Contractual services 28,600 28,600 - 28,600
Employee programs
Current:
Personal services 123,600 123,600 49,417 74,183
Contractual services 16,600 16,600 12,196 4,404
Total employee programs 140,200 140,200 61,613 78,587
Dial-a-Ride:
Current:
Contractual services 30,000 30,000 32,833 (2,833)
Edina Historical Society
Current:
Contractual services 10,000 10,000 10,000 -
Total general government 4,254,566 4,254,566 4,008,170 246,396
65
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2008
Variance with
2008Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Public safety:
Police protection:
Current:
Personal services6,153,878$ 6,153,878$ 6,283,550$ (129,672)$
Contractual services 381,133 381,133 371,267 9,866
Commodities 74,933 74,933 57,871 17,062
Central services 920,592 920,592 904,261 16,331
Total current 7,530,536 7,530,536 7,616,949 (86,413)
Capital outlay 265,533 265,533 419,569 (154,036)
Total police protection 7,796,069 7,796,069 8,036,518 (240,449)
Fire protection:
Current:
Personal services 3,622,319 3,622,319 3,544,748 77,571
Contractual services 313,650 313,650 324,337 (10,687)
Commodities 155,300 155,300 163,150 (7,850)
Central services 318,588 318,588 299,471 19,117
Total current 4,409,857 4,409,857 4,331,706 78,151
Capital outlay 201,247 201,247 89,277 111,970
Total fire protection 4,611,104 4,611,104 4,420,983 190,121
Civil defense:
Current:
Personal services 37,370 37,370 37,370 -
Contractual services 9,781 9,781 16,084 (6,303)
Commodities 11,758 11,758 2,479 9,279
Total current 58,909 58,909 55,933 2,976
Capital outlay 5,683 5,683 19,408 (13,725)
Total civil defense 64,592 64,592 75,341 (10,749)
Animal Control:
Current:
Personal services 65,732 65,732 68,616 (2,884)
Contractual services 8,581 8,581 8,492 89
Commodities 4,174 4,174 904 3,270
Central services 9,360 9,360 8,698 662
Total current 87,847 87,847 86,710 1,137
Capital outlay 7,534 7,534 28,800 (21,266)
Total animal control 95,381 95,381 115,510 (20,129)
Public health:
Current:
Personal services 268,932 268,932 242,472 26,460
Contractual services 191,712 191,712 186,384 5,328
Commodities 1,364 1,364 864 500
Central services 35,040 35,040 32,960 2,080
Total current 497,048 497,048 462,680 34,368
Capital outlay 5,682 5,682 908 4,774
Total public health 502,730 502,730 463,588 39,142
66
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2008
Variance with
2008Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Inspections:
Current:
Personal services844,387$ 844,387$ 919,507$ (75,120)$
Contractual services 62,613 62,613 73,439 (10,826)
Commodities 8,998 8,998 7,409 1,589
Central services 89,604 89,604 85,126 4,478
Total current 1,005,602 1,005,602 1,085,481 (79,879)
Capital outlay 22,452 22,452 16,604 5,848
Total inspections 1,028,054 1,028,054 1,102,085 (74,031)
Total public safety 14,097,930 14,097,930 14,214,025 (116,095)
Public works:
Administration:
Current:
Personal services 178,079 178,079 173,381 4,698
Contractual services 6,200 6,200 4,784 1,416
Commodities 500 500 32 468
Central services 24,732 24,732 22,981 1,751
Total administration 209,511 209,511 201,178 8,333
Engineering:
Current:
Personal services 728,405 728,405 802,756 (74,351)
Contractual services 103,650 103,650 161,371 (57,721)
Commodities 20,100 20,100 10,378 9,722
Central services 118,968 118,968 110,786 8,182
Total current 971,123 971,123 1,085,291 (114,168)
Capital outlay 51,084 51,084 27,885 23,199
Total engineering 1,022,207 1,022,207 1,113,176 (90,969)
Supervision and overhead:
Current:
Personal services 203,399 203,399 180,462 22,937
Contractual services 32,000 32,000 27,729 4,271
Commodities 300 300 - 300
Central services 195,468 195,468 174,621 20,847
Total supervision and overhead 431,167 431,167 382,812 48,355
Street maintenance:
Current:
Personal services 1,896,599 1,896,599 1,911,656 (15,057)
Contractual services 701,554 701,554 613,079 88,475
Commodities 965,490 965,490 998,718 (33,228)
Central services 654,264 654,264 653,022 1,242
Total current 4,217,907 4,217,907 4,176,475 41,432
Capital outlay 519,454 519,454 597,059 (77,605)
Total street maintenance 4,737,361 4,737,361 4,773,534 (36,173)
Total public works 6,400,246 6,400,246 6,470,700 (70,454)
67
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2008
Variance with
2008Final Budget -
ActualUnder
Original Final Amounts (Over)
Budgeted Amounts
Parks:
Administration:
Current:
Personal services619,413$ 619,413$ 611,288$ 8,125$
Contractual services 32,995 32,995 24,973 8,022
Commodities 3,500 3,500 11,818 (8,318)
Central services 70,308 70,308 64,969 5,339
Total current 726,216 726,216 713,048 13,168
Capital outlay 7,088 7,088 3,861 3,227
Total administration 733,304 733,304 716,909 16,395
Recreation:
Current:
Personal services 192,001 192,001 172,165 19,836
Contractual services 177,897 177,897 138,056 39,841
Commodities 50,154 50,154 52,601 (2,447)
Total recreation 420,052 420,052 362,822 57,230
Maintenance:
Current:
Personal services 1,526,123 1,526,123 1,540,070 (13,947)
Contractual services 516,873 516,873 454,980 61,893
Commodities 193,803 193,803 192,522 1,281
Central services 330,228 330,228 320,122 10,106
Total current 2,567,027 2,567,027 2,507,694 59,333
Capital outlay 121,517 121,517 51,935 69,582
Total maintenance 2,688,544 2,688,544 2,559,629 128,915
Deer control:
Current:
Personal services - - 11,432 (11,432)
Contractual services 10,000 10,000 10,070 (70)
Total deer control 10,000 10,000 21,502 (11,502)
Total parks 3,851,900 3,851,900 3,660,862 191,038
Total expenditures 28,604,642 28,604,642 28,353,757 250,885
Revenues over (under) expenditures (742,800) (742,800) (117,479) 625,321
Other financing sources (uses):
Transfer from other funds 742,800 742,800 742,800 -
Transfer to other funds (50,000) (450,000) (450,000) -
Sale of capital assets 50,000 50,000 96,825 46,825
Total financing sources (uses)742,800 342,800 389,625 46,825
Net increase (decrease) in fund balance -$ (400,000)$ 272,146 672,146$
Fund balance - January 1 14,106,857
Fund balance - December 31 14,379,003$
68
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2008
UnfundedUnfunded
ActuarialActuarialActuarialActuarial Liability as a
ValuationAccruedValue ofAccruedFundedCoveredPercentage of
Date Liability Plan Assets Liability Ratio Payroll Payroll
January 1, 20084,638,477$ -$ 4,638,477$ 0.0%17,071,318$ 27.2%
69
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70
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2008
71
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, 2008
72
Note B EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund budget is legally adopted on a basis consistent with accounting principles
generally accepted in the United States of America. The legal level of budgetary control is at the
department level for the General Fund. The following is a listing of General Fund departments whose
expenditures exceed budget appropriations.
Final Over
Budget Actual Budget
General Government:
Elections 204,068$ 297,233$ 93,165$
Special assessments30,000 30,939 939
Human rights 90,744 101,435 10,691
Dial-a-Ride 30,000 32,833 2,833
Public Safety:
Police protection 7,796,069 8,036,518 240,449
Civil defense 64,592 75,341 10,749
Animal Control 95,381 115,510 20,129
Inspections 1,028,054 1,102,085 74,031
Public Works:
Engineering 1,022,207 1,113,176 90,969
Street maintenance4,737,361 4,773,534 36,173
Parks:
Deer control 10,000 21,502 11,502
Excess expenditures in the elections, special assessments, human rights, dial-a-ride, engineering,
and deer control departments are funded by available general fund balance. Excess expenditures in
the police protection, civil defense, animal control, and street maintenance departments are by
available general fund balance designated for our equipment replacement program. Excess
expenditures in the inspections department are funded by greater than anticipated charges for
services and license and permit revenue.
Excess expenditures of $25,029 in the CDBG fund are due to timing differences between the grant
period and the City’s fiscal year. All CDBG expenditures are reimbursed by the County.
A Special Revenue Fund is used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes.
The following are nonmajor special revenue funds:
Community Development Block Grant Fund - This fund was established to
account for funds received under Title I of the Housing and Community
Development Act of 1974.
Communications Fund - This fund was established to account for funds received
from the franchise fee of the local cable television service.
Police Special Revenue Fund - This fund was established to account for funds
received for specific purposes within the police department, including
E-911 and forfeiture funds.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
73
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2008
CommunityTotal Nonmajor
DevelopmentPoliceSpecial Revenue
Block GrantCommunicationSpecial RevenueFunds
Assets
Cash and cash equivalents 835$ 9,557$ 3,564$ 13,956$
Investments - 697,400 - 697,400
Accrued interest receivable - 4,577 - 4,577
Accounts receivable - 180,854 - 180,854
Due from other funds - - 575,000 575,000
Due from other governments 43,695 500 - 44,195
Total assets 44,530$ 892,888$ 578,564$ 1,515,982$
Liabilities and Fund Balance
Liabilities:
Accounts payable 6,967$ 44,397$ -$ 51,364$
Salaries payable 563 9,300 - 9,863
Due to other funds 37,000 - - 37,000
Unearned revenue - 4,890 - 4,890
Total liabilities 44,530 58,587 - 103,117
Fund balance:
Unreserved:
Undesignated - 834,301 578,564 1,412,865
Total fund balance - 834,301 578,564 1,412,865
Total liabilities and fund balance 44,530$ 892,888$ 578,564$ 1,515,982$
74
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2008
Community Total Nonmajor
Development PoliceSpecial Revenue
Block GrantCommunicationSpecial RevenueFunds
Revenues:
Franchise fees -$ 647,466$ -$ 647,466$
Intergovernmental 183,985 - 69,193 253,178
Fines and forfeitures - - 104,281 104,281
Investment income - 62,781 4,118 66,899
Other - 98,326 - 98,326
Total revenues 183,985 808,573 177,592 1,170,150
Expenditures:
Current:
General government 183,985 661,803 - 845,788
Public safety - - 64,051 64,051
Total expenditures 183,985 661,803 64,051 909,839
Net increase (decrease) in fund balance - 146,770 113,541 260,311
Fund balance - January 1 - 687,531 465,023 1,152,554
Fund balance - December 31 -$ 834,301$ 578,564$ 1,412,865$
75
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, 2008
Variance with
Final budget -
Actual Over
Original Final Amounts(Under)
Revenues:
Total revenues 158,956$ 158,956$ 183,985$ 25,029$
Expenditures:
Current:
General government 158,956 158,956 183,985 25,029
Net increase (decrease) in fund balance -$ -$ -$ -$
Fund balance - January 1 -
Fund balance - December 31 -$
Budgeted Amounts
76
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
77
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR PROPRIETARY FUNDS
December 31, 2008
Total Nonmajor
ArtEdinborough ParkProprietary
Arena Center Centennial Lakes Funds
Assets
Current assets:
Cash and cash equivalents 130$ 31,510$ 14,694$ 46,334$
Investments - - 3,936,326 3,936,326
Interest receivable - - 29,962 29,962
Accounts receivable 122,952 - 7,409 130,361
Due from other funds - 15,000 - 15,000
Inventory - 11,436 - 11,436
Total current assets 123,082 57,946 3,988,391 4,169,419
Noncurrent assets:
Net capital assets 2,502,430 261,110 1,178,967 3,942,507
Total noncurrent assets 2,502,430 261,110 1,178,967 3,942,507
Total assets 2,625,512 319,056 5,167,358 8,111,926
Liabilities:
Current liabilities:
Accounts payable 27,365 20,103 265,596 313,064
Salaries payable 22,030 7,231 44,569 73,830
Accrued interest payable 4,121 - - 4,121
Due to other funds 15,000 - - 15,000
Due to other governments 724 753 5,997 7,474
Unearned revenue - 7,222 49,356 56,578
OPEB payable 3,767 1,040 6,167 10,974
Compensated absences payable 53,150 16,744 54,460 124,354
Bonds payable 225,000 - - 225,000
Total current liabilities 351,157 53,093 426,145 830,395
Noncurrent liabilities:
Compensated absences 79,724 25,115 81,691 186,530
Total noncurrent liabilities 79,724 25,115 81,691 186,530
Total liabilities 430,881 78,208 507,836 1,016,925
Net assets:
Invested in capital assets,
net of related debt 2,277,430 261,110 1,178,967 3,717,507
Unrestricted (82,799) (20,262) 3,480,555 3,377,494
Total net assets 2,194,631$ 240,848$ 4,659,522$ 7,095,001$
78
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2008
Total Nonmajor
Edinborough ParkProprietary
Arena Art Center Centennial Lakes Funds
Operating revenues:
Sales - retail 2,099$ 40,693$ -$ 42,792$
Sales - concessions 5,986 651 56,643 63,280
Memberships 3,851 27,716 56,051 87,618
Admissions 120,558 - 526,597 647,155
Building rental 1,131,385 - 272,711 1,404,096
Rental of equipment 3,136 - 92,324 95,460
Greens fees - - 177,109 177,109
Class registration & other fees 132,584 382,637 484,487 999,708
Total operating revenues 1,399,599 451,697 1,665,922 3,517,218
Operating expenses:
Cost of sales and services 1,036 22,303 54,848 78,187
Personal services 614,747 221,416 1,146,551 1,982,714
Contractual services 671,565 302,066 486,910 1,460,541
Commodities 72,936 51,670 264,006 388,612
Central Services 43,343 36,533 83,355 163,231
Depreciation 286,033 30,206 102,725 418,964
Total operating expenses 1,689,660 664,194 2,138,395 4,492,249
Operating loss(290,061) (212,497) (472,473) (975,031)
Nonoperating revenues (expenses):
Investment income - - 382,007 382,007
Donations - 26,474 - 26,474
Interest and fiscal charges (8,354) - - (8,354)
Amortization of bond discount (2,246) - - (2,246)
Total nonoperating
revenues (expenses)(10,600) 26,474 382,007 397,881
Income (loss) before transfers (300,661) (186,023) (90,466) (577,150)
Transfers:
Transfers in 105,000 135,000 - 240,000
Total transfers 105,000 135,000 - 240,000
Change in net assets(195,661) (51,023) (90,466) (337,150)
Net assets - January 1 2,390,292 291,871 4,749,988 7,432,151
Net assets - December 31 2,194,631$ 240,848$ 4,659,522$ 7,095,001$
79
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2008
Total Nonmajor
ArtEdinborough Park Proprietary
Arena Center Centennial Lakes Funds
Cash flows from operating activities:
Receipts from customers and users 1,419,598$ 453,400$ 1,663,455$ 3,536,453$
Payment to suppliers (808,725) (411,513) (683,024) (1,903,262)
Payment to employees (594,162) (213,738) (1,116,314) (1,924,214)
Donations - 26,474 - 26,474
Net cash provided by (used in)
operating activities 16,711 (145,377) (135,883) (264,549)
Cash flows from noncapital financing activities:
Transfer from other funds 105,000 135,000 - 240,000
Proceeds from interfund borrowing 15,000 - - 15,000
Payment of interfund borrowing - (15,000) - (15,000)
Net cash provided by noncapital
financing activities 120,000 120,000 - 240,000
Cash flows from capital and related financing activities:
Acquisition of capital assets - - (480,113) (480,113)
Principal paid on bonds (220,000) - - (220,000)
Interest paid on bonds (11,230) - - (11,230)
Net cash used in capital and
related financing activities (231,230) - (480,113) (711,343)
Cash flows from investing activities:
Proceeds from sales of investments - - 352,680 352,680
Investment income - - 247,320 247,320
Net cash flows provided by (used in)investing activities - - 600,000 600,000
Net increase (decrease) in cash
and cash equivalents (94,519) (25,377) (15,996) (135,892)
Cash and cash equivalents - January 1 94,649 56,887 30,690 182,226
Cash and cash equivalents - December 31 130$ 31,510$ 14,694$ 46,334$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (290,061)$ (212,497)$ (472,473)$ (975,031)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation 286,033 30,206 102,725 418,964
Donations - 26,474 - 26,474
Changes in assets and liabilities:
Decrease (increase) in receivables 19,999 - (2,384) 17,615
Decrease (increase) in inventory - 2,557 - 2,557
Increase (decrease) in accounts payable(20,157) (1,396) 205,426 183,873
Increase (decrease) in salaries payable 7,048 2,982 12,938 22,968
Increase (decrease) in due to
other governments 312 (102) 669 879
Increase (decrease) in unearned revenue - 1,703 (83) 1,620
Increase (decrease) in OPEB payable 3,767 1,040 6,167 10,974
Increase (decrease) in
compensated absences 9,770 3,656 11,132 24,558
Total adjustments 306,772 67,120 336,590 710,482
Net cash provided by (used in)
operating activities 16,711$ (145,377)$ (135,883)$ (264,549)$
Noncash investing activities:
Increase in fair value of investments -$ -$ 132,047$ 132,047$
80
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
81
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82
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2008
Balance Balance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash 21,295$ 210$ -$ 21,505$
Liabilities:
Due to other governmental units 21,295$ 210$ -$ 21,505$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash 3,761$ 9,343$ -$ 13,104$
Investments 295,000 - 50,000 245,000
Total Assets 298,761$ 9,343$ 50,000$ 258,104$
Liabilities:
Accounts payable 13,889$ 1,716$ -$ 15,605$
Salaries payable 1,593 2,594 - 4,187
Due to other governmental units 283,279 - 44,967 238,312
Total Liabilities 298,761$ 4,310$ 44,967$ 258,104$
PAYROLL
Assets:
Cash 47,153$ -$ 33,137$ 14,016$
Liabilities:
Accounts payable 47,153$ -$ 33,137$ 14,016$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash 72,209$ 9,553$ 33,137$ 48,625$
Investments 295,000 - 50,000 245,000
Total Assets 367,209$ 9,553$ 83,137$ 293,625$
Liabilities:
Accounts payable 61,042$ 1,716$ 33,137$ 29,621$
Salaries payable 1,593 2,594 - 4,187
Due to other governmental units 304,574 210 44,967 259,817
Total Liabilities 367,209$ 4,520$ 78,104$ 293,625$
83
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84
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2005 2006 2007 2008 2009
Total tax capacity 91,309,672$ 101,947,912$ 113,428,895$ 120,084,430$ 122,532,149$
Increment valuation (7,330,826) (7,980,069) (8,771,951) (9,771,137) (10,307,195)
Contribution to fiscal
disparities pool (7,635,854) (7,107,862) (8,486,997) (9,358,999) (10,393,526)
Tax capacity used
for rate calculation 76,342,992 86,859,981 96,169,947 100,954,294 101,831,428
Fiscal disparities distribution2,374,371 2,411,937 2,595,376 2,895,523 3,298,549
Adjusted net tax capacity78,717,363$ 89,271,918$ 98,765,323$ 103,849,817$ 105,129,977$
Tax levies:
General fund 17,772,350$ 18,560,151$ 19,427,890$ 20,314,404$ 21,202,691$
Public project revenue 1,058,840 1,501,741 1,497,500 1,240,186 1,220,436
Capital improvement plan - - - 455,641 1,046,403
Certificates of indebtedness 162,200 159,100 - - 84,191
Total certified tax levies18,993,390 20,220,992 20,925,390 22,010,231 23,553,721
Referendum market value levy674,161 599,138 605,138 595,438 600,212
Total levy19,667,551$ 20,820,130$ 21,530,528$ 22,605,669$ 24,153,933$
Tax capacity rate:
General fund revenue 22.536 20.755 19.636 19.563 20.204
Bonds & interest 1.549 1.858 1.514 1.634 2.243
Total tax capacity rate 24.085 22.613 21.150 21.197 22.447
Market value rate0.00880 0.00703 0.00641 0.00601 0.00597
85
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2008
Final
Interest MaturityOriginal
RatesDateDateIssue Redeemed
Tax Increment Bonds:
Tax Increment Bonds, Series 2000A 4.30 - 4.8009/06/0002/01/112,620,000$ 1,420,000$
Tax Increment Bonds, Series 2002B 3.00%08/05/0202/01/121,400,000 -
Tax Increment Refunding Bonds, Series 2005B3.00%07/19/0502/01/0910,520,000 4,200,000
Tax Increment Taxable Refunding Bonds,
Series 2005C 3.75 - 4.2507/19/0502/01/096,220,000 2,520,000
Tax Increment Refunding Bonds, Series 2005D3.00 - 3.4007/19/0502/01/133,505,000 460,000
Total Tax Increment Bonds 24,265,000 8,600,000
General Obligation Bonds:
GO Equipment Certificates, Series 2003A1.05 - 2.4003/01/0302/01/081,540,000 1,390,000
GO Park & Recreation Refunding Bonds,
Series 2005A 3.50 - 4.0007/19/0502/01/175,375,000 400,000
GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/285,865,000 -
Total General Obligation Bonds 12,780,000 1,790,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving,
Series 2005E 3.00 - 3.7509/13/0502/01/161,460,000 160,000
GO Permanent Improvement Revolving
Series 2007C 3.60 - 4.2505/24/0702/01/195,870,000 -
GO Permanent Improvement Revolving
Series 2008B 3.00 - 4.0008/28/0802/01/20 - -
Total PIR Bonds 7,330,000 160,000
Public Project Revenue Bonds:
Public Project Revenue, Series 2002 4.00 - 5.2501/01/0202/01/2112,410,000 2,260,000
Public Project Revenue, Series 2005 3.00 - 4.1309/13/0505/01/265,425,000 185,000
Total Public Project Revenue Bonds 17,835,000 2,445,000
Revenue Bonds:
Recreational Facility Bonds, Series 1999B3.70 - 4.4505/03/9901/01/133,270,000 1,300,000
Recreational Facility Bonds, Series 2001A2.25 - 4.6511/01/0101/01/174,620,000 2,900,000
Utility Revenue Bonds, Series 1999A 3.20 - 4.2005/03/9902/01/093,600,000 2,775,000
Utility Revenue Bonds, Series 2003C 1.10 - 3.5503/01/0302/01/133,200,000 1,165,000
Utility Revenue Bonds, Series 2007B 4.00%05/24/0702/01/178,210,000 -
Utility Revenue Bonds, Series 2008A 3.00 - 4.0008/28/0802/01/19 - -
Total Public Project Revenue Bonds 22,900,000 8,140,000
Total - Bonded indebtedness 85,110,000$ 21,135,000$
Prior Years
86
PrincipalInterestInterest
Outstanding PayableDueDuePayable
12/31/07 Issued Payments 12/31/08 In 2009 In 2009 to Maturity
1,200,000$ -$ 280,000$ 920,000$ 290,000$ 36,678$ 67,245$
1,400,000 - - 1,400,000 - 42,000 147,000
6,320,000 - 3,085,000 3,235,000 3,235,000 48,525 48,525
3,700,000 - 1,815,000 1,885,000 1,885,000 40,056 40,056
3,045,000 - 470,000 2,575,000 480,000 76,977 219,384
15,665,000 - 5,650,000 10,015,000 5,890,000 244,236 522,210
150,000 - 150,000 - - - -
4,975,000 - 420,000 4,555,000 435,000 162,825 831,931
5,865,000 - - 5,865,000 195,000 235,044 2,729,593
10,990,000 - 570,000 10,420,000 630,000 397,869 3,561,524
1,300,000 - 155,000 1,145,000 150,000 37,206 158,947
5,870,000 - - 5,870,000 - 223,243 1,398,914
- 7,755,000 - 7,755,000 - 253,259 2,069,763
7,170,000 7,755,000 155,000 14,770,000 150,000 513,708 3,627,624
10,150,000 - 525,000 9,625,000 550,000 467,812 3,527,387
5,240,000 - 190,000 5,050,000 195,000 197,381 2,066,953
15,390,000 - 715,000 14,675,000 745,000 665,193 5,594,340
1,970,000 - 295,000 1,675,000 310,000 66,580 190,197
1,720,000 - 550,000 1,170,000 550,000 36,578 151,981
825,000 - 405,000 420,000 420,000 8,820 8,820
2,035,000 - 310,000 1,725,000 320,000 51,565 150,698
8,210,000 - 770,000 7,440,000 700,000 283,600 1,417,800
- 13,985,000 - 13,985,000 605,000 459,171 3,219,380
14,760,000 13,985,000 2,330,000 26,415,000 2,905,000 906,314 5,138,876
63,975,000$ 21,740,000$ 9,420,000$ 76,295,000$ 10,320,000$ 2,727,320$ 18,444,574$
2008
87
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, 2008
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 24,571,449 1,219,151 5,957,889
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 2,747,172 802 (747,974)
Other - 73,881 73,881 - -
Total sources of funds:3,000,000 41,467,707 34,417,246 1,219,953 5,830,508
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 18,982 1,859 159
Work orders - 16,257 16,257 - -
Contingencies - 11,644 11,644 - -
Interest - 463,037 463,037 - -
Miscellaneous - 62,095 63,010 - (915)
Transfer - 17,000,000 14,325,000 1,250,000 1,425,000
Total uses of funds:3,000,000 37,562,457 34,339,338 1,251,859 1,971,260
Funds remaining (deficit)-$ 3,905,250$ 77,908$ (31,906)$ 3,859,248$
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$
88
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, 2008
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 57,551,878 2,755,049 14,693,073
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 2,665,830 - 834,170
Other - 50,000 1,357 - 48,643
Total sources of funds:6,763,182 104,530,317 83,270,253 2,755,049 18,505,015
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 91,949 7,664 10,387
Transfers out - 22,000,000 16,831,699 2,750,000 2,418,301
Interest reduction - 1,850,000 - - 1,850,000
Parkland dedication fees - 767,852 767,852 - -
Total uses of funds:9,763,182 98,297,852 83,223,976 2,757,664 12,316,212
Funds remaining (deficit)(3,000,000)$ 6,232,465$ 46,277$ (2,615)$ 6,188,803$
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$
89
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, 2008
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 13,934,144 1,175,626 14,627,337
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds - 300,000 972,368 42,520 (714,888)
Other - - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 29,845,839 1,218,146 13,573,122
Uses of funds:
Land acquisition - 6,500,000 4,060,529 204,887 2,234,584
Installation of public utilities
and improvements 4,310,000 17,127,000 9,738,935 - 7,388,065
Bond payments:
Principal - 9,900,000 7,037,555 280,000 2,582,445
Interest - 9,190,000 3,038,800 91,860 6,059,340
Loan/note interest - - 3,414,416 586,578 (4,000,994)
Paid to other governments - - 197,146 1,832 (198,978)
Administrative costs 190,000 1,920,107 1,343,678 9,493 566,936
Total uses of funds:4,500,000 44,637,107 28,831,059 1,174,650 14,631,398
Funds remaining (deficit)-$ -$ 1,014,780$ 43,496$ (1,058,276)$
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$
90
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, 2008
Accounted
OriginalAmendedfor in CurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds 41,400,000$ 34,400,000$ 33,761,677$ -$ 638,323$
Tax increments received80,000,000 90,000,000 34,770,098 3,428,608 51,801,294
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 3,504,388 343,516 (1,347,904)
Transfer in - 40,000,000 32,267,924 4,000,000 3,732,076
Sale of material - 255,710 255,710 - -
Developer payments - 297,826 297,826 - -
Other - 20,000 21,799 - (1,799)
Total sources of funds:126,400,000 180,431,702 116,516,492 7,772,124 56,143,086
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 16,688,430 2,070,016 7,112,784
Bond payments:
Principal 41,400,000 41,400,000 22,829,724 5,370,000 13,200,276
Interest 38,000,000 38,000,000 33,635,357 353,834 4,010,809
Administrative costs 1,140,800 1,600,000 1,326,749 26,163 247,088
Paid to other governments - 42,000 33,126 3,632 5,242
Loan/note interest - 14,684,711 4,458,855 557,860 9,667,996
Parkland dedication fees - 2,030,345 2,030,345 - -
Total uses of funds:121,117,800 146,609,711 103,984,011 8,381,505 34,244,195
Funds remaining (deficit)5,282,200$ 33,821,991$ 12,532,481$ (609,381)$ 21,898,891$
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$
91
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, 2008
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 - - 225,305 17,178 (242,483)
Total sources of funds:4,088,855 4,088,855 972,168 17,178 3,099,509
Uses of funds:
Land acquisition 529,400 529,400 37,861 2,107 489,432
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 4,088,855 655,700 2,107 3,431,048
Funds remaining (deficit)-$ -$ 316,468$ 15,071$ (331,539)$
92
Contents
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
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
debt in the future.
Theseschedulesofferdemographicandeconomic
indicatorstohelpthereaderunderstandthe
environmentwithinwhichtheCity'sfinancialactivities
take place.
Theseschedulescontainserviceandinfrastructuredata
tohelpthereaderunderstandhowtheinformationinthe
City'sfinancialreportrelatestotheservicestheCity
provides and the activities it performs.
100
104
109
111
STATISTICAL SECTION
ThispartoftheCity'scomprehensiveannualfinancialreportpresents
detailedinformationasacontextforunderstandingwhattheinformationin
thefinancialstatements,notedisclosures,andrequiredsupplementary
information says about the City's overall financial health.
Page
94
93
CITY OF EDINA, MINNESOTA
NET ASSETS BY COMPONENT
LAST SIX FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006 2007 2008
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$ 71,601,227$
Restricted 4,676,748 2,145,488 78,943 - - 3,362,446
Unrestricted 31,876,783 28,762,040 35,796,801 15,280,058 25,136,312 29,577,462
Total governmental activities
net assets 58,345,908$ 65,228,312$ 71,967,764$ 85,094,070$ 92,817,194$ 104,541,135$
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$ 46,851,736$
Restricted 1,672,828 - - - - 954,486
Unrestricted 15,344,474 11,934,496 11,121,720 6,379,515 13,649,355 12,071,776
Total business-type activities
net assets 46,969,851$ 49,174,972$ 51,165,889$ 53,361,270$ 56,695,515$ 59,877,998$
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$ 118,452,963$
Restricted 6,349,576 2,145,488 78,943 - - 4,316,932
Unrestricted 47,221,257 40,696,536 46,918,521 21,659,573 38,785,667 41,649,238
Total primary government
net assets 105,315,759$ 114,403,284$ 123,133,653$ 138,455,340$ 149,512,709$ 164,419,133$
Fiscal Year
94
CITY OF EDINA, MINNESOTA
CHANGES IN NET ASSETS
LAST SIX FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006 2007 2008
Expenses
Governmental activities:
General government 5,839,893$ 6,934,045$ 4,967,008$ 5,414,961$ 7,039,298$ 6,836,248$
Public safety 10,784,215 11,063,767 12,019,027 13,300,351 13,743,194 14,833,647
Public works 5,621,291 5,834,490 7,185,784 8,973,031 8,757,022 9,046,873
Parks 4,484,685 4,248,060 5,901,648 5,341,682 5,025,560 5,971,565
Interest on long-term debt 2,760,022 2,399,682 2,288,524 2,973,749 1,887,633 1,923,821
Total governmental activities expenses29,490,106 30,480,044 32,361,991 36,003,774 36,452,707 38,612,154
Business-type activities:
Utilities 7,930,502 7,801,580 8,254,409 9,234,651 10,036,844 10,625,811
Liquor 8,764,081 9,110,888 9,749,313 9,968,963 10,361,998 11,049,223
Aquatic center 711,061 701,768 725,936 795,614 780,981 787,663
Golf course 3,555,243 3,508,741 3,580,307 3,652,169 3,621,977 3,612,482
Community activity centers 3,833,026 3,850,192 3,825,562 4,048,649 4,168,534 4,502,849
Total business-type activities expenses24,793,913 24,973,169 26,135,527 27,700,046 28,970,334 30,578,028
Total primary government expenses 54,284,019$ 55,453,213$ 58,497,518$ 63,703,820$ 65,423,041$ 69,190,182$
Program Revenues
Governmental activities:
Charges for services:
General government 930,391$ 454,603$ 619,526$ 731,613$ 784,659$ 840,070$
Public safety 4,213,081 4,634,744 5,614,406 6,146,114 5,632,642 5,839,683
Other activities 898,141 748,398 630,157 793,796 736,329 763,130
Operating grants and contributions 1,215,745 1,154,808 1,512,366 1,423,302 1,384,024 1,170,183
Capital grants and contributions 7,214,393 4,192,947 2,252,491 4,013,617 4,299,509 7,710,015
Total governmental activities program revenues 14,471,751 11,185,500 10,628,946 13,108,442 12,837,163 16,323,081
Business-type activities:
Charges for services:
Utilities 9,694,981 9,875,078 10,240,381 11,421,474 13,125,773 13,713,249
Liquor 9,659,631 10,030,067 10,752,724 11,029,445 11,436,175 12,122,599
Aquatic center 861,340 764,134 849,380 867,626 868,833 925,388
Golf course 3,684,079 3,538,122 3,482,999 3,646,620 3,630,538 3,680,584
Community activity centers 2,966,731 3,254,012 3,251,860 3,337,153 3,517,111 3,517,218
Operating grants and contributions 132,031 138,447 131,408 122,358 127,492 147,456
Total business-type activities program revenue 26,998,793 27,599,860 28,708,752 30,424,676 32,705,922 34,106,494
Total primary government program revenues41,470,544$ 38,785,360$ 39,337,698$ 43,533,118$ 45,543,085$ 50,429,575$
Net (Expense)/Revenue
Governmental activities (15,018,355)$ (19,294,544)$ (21,733,045)$ (22,895,332)$ (23,615,544)$ (22,289,073)$
Business-type activities 2,204,880 2,626,691 2,573,225 2,724,630 3,735,588 3,528,466
Total primary government net expense(12,813,475)$ (16,667,853)$(19,159,820)$(20,170,702)$(19,879,956)$ (18,760,607)$
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes 17,815,426$ 17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$ 22,242,276$
Tax increment collections 7,342,270 6,761,934 7,060,744 7,228,002 7,793,577 8,578,434
Franchise taxes - 450,956 457,421 499,206 570,871 647,466
Unrestricted investment earnings 286,209 443,074 977,956 1,230,264 1,581,702 1,185,899
Gain on disposal of capital assets 26,669 - 63,674 8,418 58,377 1,265
Transfers (4,053,805) 655,227 841,500 838,230 919,625 967,800
Total governmental activities 21,416,769 26,176,948 28,472,497 30,218,418 32,383,153 33,623,140
Business-type activities:
Unrestricted investment earnings 387,117 227,167 236,654 283,771 510,678 607,312
Gain (loss) on disposal of capital assets(177,051) 6,490 22,538 25,210 7,604 14,505
Transfers 4,053,805 (655,227) (841,500) (838,230) (919,625) (967,800)
Total business-type activities 4,263,871 (421,570) (582,308) (529,249) (401,343) (345,983)
Total primary government 25,680,640$ 25,755,378$ 27,890,189$ 29,689,169$ 31,981,810$ 33,277,157$
Change in Net Assets
Governmental activities 6,398,414$ 6,882,404$ 6,739,452$ 7,323,086$ 8,767,609$ 11,334,067$
Business-type activities 6,468,751 2,205,121 1,990,917 2,195,381 3,334,245 3,182,483
Total primary government 12,867,165$ 9,087,525$ 8,730,369$ 9,518,467$ 12,101,854$ 14,516,550$
Fiscal Year
95
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1999 2000a 2001 2002
General fund
Reserved 2,407,155$ 141,939$ 15,872$ 417,093$
Unreserved 10,051,978 13,755,160 14,359,821 14,325,972
Total general fund 12,459,133$ 13,897,099$ 14,375,693$ 14,743,065$
All other governmental funds
Reserved 496,581$ 16,729,995$ 2,319,839$ 4,186,436$
Unreserved, reported in:
Special revenue funds 942,791 1,147,917 1,435,949 1,589,518
Capital projects funds 18,216,440 22,454,859 22,869,578 26,750,351
Total all other governmental funds19,655,812$ 40,332,771$ 26,625,366$ 32,526,305$
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
2003b 2004 2005c 2006 2007 2008
412,991$ 390,771$ 223,351$ 36,849$ 28,637$ 13,982$
9,961,074 10,226,055 11,595,433 13,797,189 14,078,220 14,365,021
10,374,065$ 10,616,826$ 11,818,784$ 13,834,038$ 14,106,857$ 14,379,003$
4,084,987$ 3,465,440$ 13,792,312$ 2,682,238$ 6,247,539$ 8,467,918$
686,777 781,458 731,027 13,179,904 14,750,448 14,950,538
19,608,849 16,651,788 17,032,750 3,160,085 5,853,322 4,270,440
24,380,613$ 20,898,686$ 31,556,089$ 19,022,227$ 26,851,309$ 27,688,896$
Fiscal Year
97
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
1999 2000 2001 2002
Revenues
General property taxes 21,995,230$ 22,904,512$ 24,409,785$ 24,735,336$
Tax increment collections - - - -
Special assessments 990,330 1,159,876 1,086,093 998,908
Franchise fees 297,866 336,678 473,702 418,153
License and permits 2,135,541 1,835,828 2,239,611 1,939,207
Intergovernmental 3,185,008 1,880,680 5,085,981 2,254,968
Charges for services 3,215,441 2,902,666 1,962,172 2,096,806
Fines and forfeitures 794,710 967,421 976,952 910,407
Investment income 415,114 2,376,137 1,357,701 1,178,211
Rental of property 284,085 1,156,526 4,262,984 1,782,063
Other revenues 478,788 96,932 184,466 180,081
Total revenues 33,792,113 35,617,256 42,039,447 36,494,140
Expenditures
General government3,899,660 4,558,424 5,353,002 5,372,431
Public safety 8,516,673 8,846,360 9,409,291 9,893,428
Public works 3,744,124 3,672,057 4,313,065 4,161,373
Parks 2,240,730 2,150,588 2,375,565 2,602,266
Capital outlay 6,117,215 8,352,494 11,193,155 11,059,757
Debt service
Principal 3,275,000 6,050,000 3,740,000 5,885,000
Interest and other charges 3,262,266 3,108,601 3,148,719 3,094,480
Total expenditures 31,055,668 36,738,524 39,532,797 42,068,735
Revenues over (under) expenditures 2,736,445 (1,121,268) 2,506,650 (5,574,595)
Other Financing Sources (Uses)
Transfers in 5,983,107 6,976,639 6,215,411 12,308,480
Transfers out (6,006,107) (6,165,639) (6,201,152) (11,552,990)
Parkland dedication 264,424 85,520 60,280 -
Sale of capital assets - - - -
Bonds issued - 21,742,116 - 13,637,416
Premium on bonds issued - - - -
Discount on bonds issued - - - -
Refunding bonds issued - - - -
Payment to refunding escrow - - (15,810,000) (2,550,000)
Principal paid by escrow - - - -
Total other financing sources (uses)241,424 22,638,636 (15,735,461) 11,842,906
Net change in fund balances 2,977,869$ 21,517,368$ (13,228,811)$ 6,268,311$
Debt service as a percentage of
noncapital expenditures26.2%32.3%24.3%29.0%
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
2003 2004 2005 2006 2007a 2008
17,903,618$ 17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$ 22,242,276$
7,342,270 6,761,934 7,060,744 7,228,002 7,793,577 8,578,434
1,019,461 966,879 1,354,264 1,751,219 1,750,444 2,442,490
393,627 450,956 457,421 499,206 570,871 647,466
2,182,263 2,247,759 3,240,622 3,488,897 2,909,521 2,915,455
4,678,735 3,933,540 1,539,169 2,773,350 3,699,006 3,005,883
2,076,519 2,279,302 2,466,663 2,691,354 2,748,709 3,093,941
785,227 863,073 742,917 1,023,935 971,486 1,073,174
286,209 443,074 977,956 1,230,264 1,581,702 1,185,899
354,266 385,707 315,542 310,145 355,734 255,607
200,551 294,136 227,446 246,797 225,839 126,723
37,222,746 36,492,117 37,453,946 41,657,467 44,065,890 45,567,348
5,709,741 5,213,469 5,477,308 5,995,804 6,544,307 6,235,352
10,352,816 11,125,388 11,373,763 12,431,114 12,985,215 13,788,797
4,142,668 4,386,669 4,882,811 5,233,907 5,787,619 6,189,594
2,974,164 2,954,372 3,146,029 3,300,375 3,455,789 3,693,595
15,539,676 7,772,321 8,227,191 8,980,526 11,991,122 14,666,907
5,700,000 6,450,000 6,830,000 5,985,000 6,190,000 7,090,000
2,908,787 2,484,291 2,543,639 2,107,036 1,677,770 1,967,021
47,327,852 40,386,510 42,480,741 44,033,762 48,631,822 53,631,266
(10,105,106) (3,894,393) (5,026,795) (2,376,295) (4,565,932) (8,063,918)
8,752,126 8,367,595 7,797,369 6,865,258 7,290,391 7,983,585
(12,805,931) (7,712,368) (6,955,869) (6,027,028) (6,370,766) (7,015,785)
- - - - - -
- - 135,045 54,457 66,845 96,825
1,540,000 - 15,816,165 - 11,735,000 7,755,000
59,219 - - - - -
- - (36,275) - (53,637) (35,848)
6,570,000 - 16,764,721 - - -
(6,525,000) - (16,635,000) - - -
- - - (9,035,000) - -
(2,409,586) 655,227 16,886,156 (8,142,313) 12,667,833 8,783,777
(12,514,692)$ (3,239,166)$ 11,859,361$ (10,518,608)$ 8,101,901$ 719,859$
27.1%27.4%27.4%23.1%20.9%22.6%
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
4,267,759$ 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
9,986,738 9,933,166 9,928,907 120,084 100,954 103,850 21.197%0.00601%2.204
Source: Hennepin County Taxpayer Services. 1999-2004 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.
Year
1999
2000
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2007
Fiscal Direct
2008
2005
2006
2001
2002
2003
2004
100
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
BasicDebtTotal Tax Direct &
RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap
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%
19.563%1.634%21.197%0.006%38.571%16.951%0.177%8.546%85.265%
Source: Hennepin County Taxpayer Services. Some 1999-2004 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.
1999
City Rates Overlapping Rates
ISD #273 EdinaFiscal
Year
2008
2000
2005
2006
2001
2002
2003
2004
2007
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$ 12.91%4,611,142$ 15.36%
Galleria Shopping Center 1,300,806 21.08%1,492,290 21.74%
Centennial Lakes Retail 926,094 30.77%602,989 90.70%
Southdale Office Park 910,362 40.76%1,359,207 41.58%
Centennial Lakes Phase V 756,518 50.63%- 0.00%
Centennial Lakes Phase IV 741,842 60.62%- 0.00%
National Car 631,752 70.53%721,112 60.84%
Macy's Department Stores 520,174 80.43%- 0.00%
Target 510,186 90.42%- 0.00%
Centennial Lakes Medical Bldg483,056 100.40%- 0.00%
Southdale Medical Bldg - 0.00%703,241 70.82%
Pentagon Office Park - 0.00%1,430,899 31.66%
United Healthcare Corporation - 0.00%777,108 50.90%
Cedars of Edina - 0.00%645,854 80.75%
Edinborough Plaza - 0.00%441,502 100.51%
Totals 10,277,888$ 8.56%12,785,344$14.87%
Source: City of Edina Assessing Office
19992008
Taxpayer
102
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections in
TaxPercentageSubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
14,012,337$ 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 85,589 17,070,687 96.29%
18,506,442 17,808,469 96.23%50,633 17,859,102 96.50%
18,808,903 18,066,892 96.06%104,651 18,171,543 96.61%
19,667,551 19,090,016 97.06%118,292 19,208,308 97.66%
20,820,130 20,310,889 97.55%157,779 20,468,668 98.31%
21,530,528 21,347,789 b 99.15%b 58,800 21,406,589 99.42%
22,605,669 22,178,719 c 98.11%c - 22,178,719 98.11%
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.
c In 2008 the State of Minnesota reimbursed the City for only 50% of HMVC.
Collected within the
Fiscal Year of the Levy
1999
2004
2000
2001
2002
2003
2008
Total Collections to Date
Taxes
Payable
2005
2006
2007
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
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 3.39%1,441
5,670 16,080 20,460 1,460 4,595 3,550 51,815 2.50%1,105
10,990 15,390 15,665 7,170 3,690 11,070 63,975 3.07%1,359
10,420 14,675 10,015 14,770 2,845 23,570 76,295 3.66%1,620
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
2001
2002
2003
2004
2007
2008
Business-Type ActivitiesGovernmental Activities
1999
2000
Year
Fiscal
2005
2006
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
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%893
10,420 14,675 10,015 35,110 0.35%746
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
2008
2007
General Bonded Debt
Year
Fiscal
1999
2000
2005
2006
2001
105
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2008
Net GeneralPercentage
Obligation Bonded ApplicableCity Share
Debt Outstanding a in City b of Debt
Overlapping Debt:
Hennepin County 501,975,359$ 6.96%34,937,485$
Hennepin Suburban Park District 72,794,815 9.21%6,704,402
Hennepin Regional Rail Authority 43,486,862 6.96%3,026,686
School Districts:
ISD No. 273 (Edina)88,490,000 98.39%87,065,311
ISD No. 270 (Hopkins)129,319,767 8.65%11,186,160
ISD No. 271 (Bloomington)100,558,951 0.00%-
ISD No. 272 (Eden Prairie)74,180,000 0.90%667,620
ISD No. 280 (Richfield)17,212,064 15.94%2,743,603
ISD No. 283 (St. Louis Park)81,340,045 0.02%16,268
Metro Council 137,904,653 3.14%4,330,206
Total Overlapping Debt 1,247,262,516 150,677,741
City of Edina 19,547,394 100.00%19,547,394
Total Overlapping and Direct Debt 1,266,809,910$ 170,225,135$
Ratio of debt per capita (47,090 population)3,615$
Ratio of debt to estimated market valuation of $9,986,737,500 1.70%
Source: Hennepin County Taxpayer Services
a Calculation excludes revenue and special assessment bonds as well as sinking fund balance, if any.
b The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
106
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008a
Debt limit 90,715$ 97,235$ 116,431$ 138,279$ 138,190$ 160,674$ 173,867$ 191,974$ 199,775$ 302,385$
Total net debt
applicable
to limit 7,825 7,550 7,250 19,360 20,200 18,890 29,785 21,750 26,380 25,095
Legal debt
margin 82,890$ 89,685$ 109,181$ 118,919$ 117,990$ 141,784$ 144,082$ 170,224$ 173,395$ 277,290$
Total net debt
applicable to
the limit as a
percentage of
debt limit 8.63%7.76%6.23%14.00%14.62%11.76%17.13%11.33%13.20%8.30%
Market value (after fiscal disparities)
Debt limit (3% of market value)
Debt applicable to limit:
General obligation bonds
Public project revenue bonds
Total debt applicable to limit
Legal debt margin
a The State of Minnesota changed the legal debt limit from 2% of taxable market value to 3% during 2008.
302,384,967
14,675,000
277,289,967$
Fiscal Year
10,079,498,900$
10,420,000
25,095,000
Legal Debt Margin Calculation for Fiscal Year 2008
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
20081,425,186 - 1,425,186 715,000 696,118 1,411,118 1.01
Tax Increment Bonds
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
20088,578,434 - 8,578,434 5,650,000 445,694 6,095,694 1.41
Permanent Improvement Revolving Bonds (Special Assessment)
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
2006 85,656 - 85,656 - 43,366 43,366 1.98
2007 391,921 - 391,921 160,000 46,694 206,694 1.90
2008 564,534 - 564,534 155,000 306,759 461,759 1.22
Utility Bond
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
2002 8,561,287 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
200813,544,728 10,076,422 3,468,306 1,485,000 459,983 1,944,983 1.78
Recreational Facility Bonds
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
20086,005,571 5,972,558 33,013 845,000 135,956 980,956 0.03
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)Income Rate Rate
47,235 1,628,002$ 34,466$ 88.2%1.60%
47,425 1,747,042 36,838 88.2%2.40%
47,465 1,774,194 37,379 91.5%3.30%
47,465 1,796,693 37,853 91.5%4.00%
47,570 1,847,429 38,836 91.5%4.10%
48,156 1,970,303 40,915 93.3%3.90%
47,448 2,014,500 42,457 92.1%3.30%
46,896 2,074,538 44,237 92.0%3.00%
47,090 2,083,120 44,237 92.0%3.45%
47,090 2,083,120 44,237 92.0%4.33%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2007 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. 2006 is the most recent estimate.
High school graduation rate data from U.S. Census Bureau for all of Hennepin County. 2007 is the
most recent estimate.
Unemployment rate data from State of Minnesota Department of Employment and Economic Development.
2000
1999
2008
2007
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.4,500 120.74%2,000 27.77%
Fairview Southdale Hospital 2,500 211.52%2,400 19.32%
Macy's (Marshall Field's or Dayton's)1,200 35.53%500 51.94%
Edina Public Schools ISD #273 1,172 45.40%DNADNADNA
Nash Finch Co.350 51.61%350 81.36%
International Dairy Queen Inc.300 61.38%300 91.17%
City of Edina 262 71.21%DNADNADNA
JC Penney Co.250 81.15%400 61.55%
Edina Realty 210 90.97%DNADNADNA
Con Agra Foods-Snack Food Gr.196 100.90%DNADNADNA
Golden Valley Microwave Foods - 0.00%650 32.53%
Health Risk Management Inc.- 0.00%552 42.14%
Norwest Funding - 0.00%358 71.39%
Roach Organization Inc.- 0.00%140 100.54%
Totals 10,940 50.43%7,650 29.72%
Source: State of Minnesota Department of Employment and Economic Development (DEED).
DNA: Historical data is not available
19992008
Employer
110
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
General Government
Administration 8.00 8.00 8.00 8.25 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 5.50 5.75 5.50 5.50 5.50 5.50 5.50 5.50 5.50
Elections 0.50 0.50 0.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Assessing 7.00 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 6.50 7.50 7.50 7.50 8.50 8.50
Supervision 2.00 2.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50
Maintenance 28.00 28.00 27.00 28.00 28.00 28.00 28.00 28.00 28.00 28.00
Public Safety
Police Protection 66.00 67.00 70.00 69.00 68.00 66.00 69.00 69.00 70.00 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 31.00 32.00 32.00 32.00 32.00 32.00 32.00 33.00 33.00
Public Health 3.08 3.08 3.08 3.75 2.75 2.75 2.75 2.75 2.75 2.75
Inspections 5.75 5.75 6.75 6.50 6.50 6.50 6.50 6.50 7.50 7.50
Parks & Recreation
Administration 7.00 7.00 7.00 7.00 7.00 6.80 6.80 6.80 6.80 6.80
Maintenance 16.00 16.00 17.00 17.00 16.00 16.50 16.40 16.40 16.40 16.40
Central Services
General 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 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 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50
Utilities 16.25 16.25 15.70 14.50 14.50 15.50 15.75 15.75 15.25 15.75
Liquor 10.00 10.00 9.30 9.75 9.75 9.75 9.75 9.75 9.75 9.75
Aquatic Center - - - - - 0.20 0.55 0.55 0.55 0.55
Golf Course 14.00 14.00 14.00 15.00 15.00 13.00 13.00 13.00 13.00 13.00
Arena 4.00 5.00 5.00 5.00 6.00 6.00 6.00 6.00 6.00 6.00
Art Center 3.00 3.00 3.00 3.00 3.00 3.00 2.50 2.00 2.00 2.00
Edinborough Park/
Centennial Lakes 13.00 12.00 13.00 12.00 12.00 12.00 12.00 11.00 12.00 12.00
Other 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 4.00 4.00
Total 264.73 266.83 272.83 273.00 270.00 268.50 271.50 270.00 277.50 278.00
Source: City of Edina Finance Department
a Employee counts do not include Council members, part-time, contract or seasonal employees.
Budgeted Full-time Employees for Fiscal Year a
Function
111
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
General Government
Total City employees- 801 868 860 879 870 909 887 890 918
Votes cast a 3,099 30,483 10,008 28,156 10,721 31,730 1,367 26,270 7,930 31,512
Public Works
Asphalt placed (tons)- - - - - - - 9,000 8,000 7,500
Concrete (cu. yds.)- - - - - - - 650 850 480
Public Safety
Crimes reported - - 2,411 2,139 2,073 1,983 1,908 1,937 2,010 NA
Fire calls 1,131 1,091 1,142 1,106 1,062 1,060 1,055 963 1,012 913
Medical calls 2,812 2,914 2,931 3,153 3,030 3,199 3,423 3,470 3,510 3,516
Central Services
Vehicle fixes - - - - - - - 2,398 2,460 2,967
Utilities
Daily consumption b - - - - - - - 7,209 7,372 7,376
Aquatic Center
Attendance 132,000 125,000 115,000 111,056 96,419 88,636 139,415 120,406 114,173 110,000
Golf Course
Total rounds played142,862 137,838 120,898 112,078 123,770 116,734 113,679 114,737 112,821 112,663
Source: Various City departments
Note: The City prepared this schedule for the first time in 2006, therefore, some historical data is not readily available.
NA: Data not available when this report was compiled.
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
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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 40 40 40 40 40 40
Acreage of parks1,552 1,552 1,552 1,552 1,553 1,553 1,553 1,553 1,553 1,553
Park buildings 26 26 26 27 27 27 27 27 27 27
Utilities
Wells 18 18 18 18 18 18 18 18 19 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 14,851 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
Fiscal Year
Function
113