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HomeMy WebLinkAbout2009 Comprehensive Annual Financial ReportCITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report for the Fiscal Year Ended Dec. 31, 2009 CITY OF EDINA, MINNESOTA Comprehensive Annual Financial Report For the fiscal year ended December 31, 2009 Prepared by: Department of Finance John Wallin – Treasurer and Finance Director Eric Roggeman – Assistant Finance Director 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 Funds25 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 Activities27 Statement of Net Assets - Proprietary Funds28 Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds 29 Statement of Cash Flows - Proprietary Funds30 Statement of Fiduciary Net Assets - Fiduciary Funds32 Notes to the Financial Statements 33 Required Supplementary Information: Budgetary Comparison Information: Budgetary Comparison Schedule - General Fund63 Other Post-Employment Benefits Plan Schedule of Funding Progress69 Notes to Required Supplementary Information71 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 Funds74 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds75 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 Funds78 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor Proprietary Funds79 Combining Statement of Cash Flows - Nonmajor Proprietary Funds80 Combining Statement of Changes in Assets and Liabilities - Agency Funds83 Supplementary Financial Information: Tax Capacity, Tax Levies and Tax Capacity Rates85 Combined Schedule of Bonded Indebtedness86 Schedule of Sources and Uses of Public Funds for 50th & France - #120088 Schedule of Sources and Uses of Public Funds for Southeast Edina Redevelopment District - #120189 Schedule of Sources and Uses of Public Funds for Grandview Area Redevelopment District - #120290 Schedule of Sources and Uses of Public Funds for Southeast Edina Redevelopment District - #120391 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 96 Fund Balances of Governmental Funds98 Changes in Fund Balances of Governmental Funds100 Revenue Capacity: Assessed Value, Actual Value and Tax Capacity of Taxable Property102 Direct and Overlapping Tax Capacity Rates103 Principal Property Tax Payers 104 Property Tax Levies and Collections105 Debt Capacity: Ratios of Outstanding Debt by Type106 Ratios of General Bonded Debt Outstanding107 Direct and Overlapping Governmental Activities Debt108 Legal Debt Margin Information 109 Pledged Revenue Coverage 110 Demographic and Economic Information: Demographic and Economic Statistics111 Principal Employers 112 Operating Information: Full-Time Equivalent City Government Employees by Function113 Operating Indicators by Function 114 Capital Asset Statistics by Function115 This page left blank intentionally. 2 Local economy The City currently enjoys a favorable economic environment and local indicators point to continued stability. The region, while noted for a strong retail sector, enjoyed considerable re-development in recent years. The re-development consisted of varied manufacturing, medical and high-tech base that adds to the relative stability of the unemployment rate. Major industries with headquarters or divisions within the government’s boundaries or in close proximity include medical services, retail operations and banking services. Edina is home to over 50,000 jobs that are expected to remain stable over the coming years. The City has become known for its quality residential housing stock and attractive neighborhoods. To date, approximately 98% of the housing stock is in place. Although the emphasis has changed over the years from exclusively single family housing to a more balanced mix of housing types, the City’s concern for overall quality in residential development remains a top priority. The City enjoys a AAA bond rating and a Aaa bond rating from Standard and Poors and Moody’s, respectively. Long-term financial planning The Metropolitan Council requires all cities in the seven-county metropolitan area to have a Comprehensive Plan and State law requires cities to update their plans every 10 years. The Comprehensive Plan guides development and redevelopment and addresses changes likely to occur due to various social and market forces. The City updated our Comprehensive Plan and submitted it to the Metropolitan Council for review in 2008. A final version was adopted by the City Council in 2009. The City continues to focus on quality of life improvements throughout Edina. These efforts cover a broad array of areas including protecting and improving the environment, revitalization of parks and public areas, expanding recreational opportunities, expanding City services, and increasing communication between City representatives and the public. The City is working closely with state government, federal government and neighboring communities to improve the area’s state and county transportation network, which includes upgraded highways and well-placed pathways. Funding for most of the transportation improvements will need to come from state, county and federal sources, with some minor portion supported by the local taxpayers. Relevant financial policies The City recently adopted a set of financial management policies that focus on long-term financial planning. Policies cover areas such as cash and investments, the operating budget, revenue, fund balance, capital outlay, and debt management. Designations for park dedication, investments, compensated absences, and cash flow are all within the ranges specified in the policies. In addition, the City has $936,499 unreserved, undesignated fund balance in the general fund. Major initiatives The City is continually working to update our aging infrastructure. Our annually adopted five-year Capital Improvement Plan includes spending and financing projections for these projects. Awards a The Gove Certificate comprehe third cons awarded organized accountin A Certific comprehe requireme The prepa Finance departme to the Ma profession Respectfu John Wal Finance D Eric Rogg Assistant and Acknowl ernment Finan e of Achieve ensive annua secutive yea a Certificate d comprehens g principles a cate of Achie ensive annua ents and we a aration of thi Department nt who assist ayor and the C nalism in the ully submitted lin Director geman Finance Dire ledgements nce Officers A ement for Ex l financial rep r that the go of Achieveme sive annual f and applicable vement is va l financial rep are submitting s report wou staff. We w ted and contr City Council f management d, ctor 3 Association o xcellence in port for the f overnment ha ent, a govern financial repo e legal require alid for a pe port continue g it to the GFO ld not have would like to ributed to the for their unfai t of the City’s 3 of the United Financial R fiscal year en as achieved nment must p ort. This repo ements. riod of one y es to meet th OA to determ been possibl express ou preparation iling support finances. States and C Reporting to nded Decemb this prestigio publish an eas ort must satis year only. W e Certificate ine its eligibili e without the r appreciatio of this report for maintainin Canada (GFO the City of ber 31, 2008 ous award. I sily readable sfy both gene We believe th of Achievem ity for anothe e dedicated s on to all me t. Credit also ng the highes OA) awarded Edina for i . This was th n order to b and efficient erally accepte hat our curre ment Program r certificate. services of th embers of th must be give st standards o a ts he be tly ed nt m’s he he en of CITY OF EDINA, MINNESOTA ORGANIZATION December 31, 2009 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, 2009. 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 $170,578,186 (net assets). Of this amount, $45,864,320 (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 $6,159,053. $5,836,562 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 $46,770,059, an increase of $4,702,160 in comparison with the prior year. Of this total amount, $31,528,465, or 67%, 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 $12,031,358, or 44% of total general fund expenditures.  The City’s total bonded debt increased by $15,095,000 during the current fiscal year, from $76,295,000 to $91,390,000. The City issued new debt during the year consisting of $14,230,000 general obligation bonds to finance equipment purchases and the new public works facility, $8,720,000 public project revenue bonds to finance the new public works facility, and $4,450,000 of revenue bonds to refinance existing debt and to pay for improvements to Braemar Arena. 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 $170,578,186 at the close of the most recent fiscal year. The largest portion of the City's net assets ($116,956,164 or 69%) reflects its investment in capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Management’s Discussion and Analysis (Continued) 12 City of Edina’s Net Assets 2009 2008 2009 2008 2009 2008 Current and other assets60,453,175$ 54,476,230$ 23,418,500$ 24,630,275$ 83,871,675$ 79,106,505$ Capital assets122,558,594 108,049,357 68,987,531 65,348,867 191,546,125 173,398,224 Total assets183,011,769$ 162,525,587$ 92,406,031$ 89,979,142$ 275,417,800$ 252,504,729$ Long-term liabilities outstanding64,880,633$ 44,334,972$ 24,346,645$ 24,334,398$ 89,227,278$ 68,669,370$ Other liabilities10,670,301 13,649,480 4,942,035 5,766,746 15,612,336 19,416,226 Total liabilities75,550,934$ 57,984,452$ 29,288,680$ 30,101,144$ 104,839,614$ 88,085,596$ Net assets: Invested in capital assets, net of related debt69,622,370$ 71,601,227$ 47,333,794$ 46,851,736$ 116,956,164$ 118,452,963$ Restricted7,132,865 3,362,446 624,837 954,486 7,757,702 4,316,932 Unrestricted30,705,600 29,577,462 15,158,720 12,071,776 45,864,320 41,649,238 Total net assets107,460,835$ 104,541,135$ 63,117,351$ 59,877,998$ 170,578,186$ 164,419,133$ Governmental Activities Business-Type Activities Totals An additional portion of the City’s net assets ($7,757,702) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($45,864,320) 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 $4,215,082 in unrestricted net assets, largely due to positive operating results in the Utility fund. Management’s Discussion and Analysis (Continued) 13 As shown below, the City’s net assets increased by $6,159,053 during the current fiscal year. Factors contributing to this change are discussed in the next two sections. City of Edina's Changes in Net Assets 2009 2008 2009 2008 2009 2008 Revenues: Program revenues: Charges for services6,697,150$ 7,442,883$ 35,641,231$ 33,959,038$ 42,338,381$ 41,401,921$ Operating grants and contributions1,377,785 1,170,183 135,917 147,456 1,513,702 1,317,639 Capital grants and contributions2,582,999 7,710,015 - - 2,582,999 7,710,015 General revenues: Property taxes23,834,274 22,242,276 300,372 - 24,134,646 22,242,276 Other taxes8,255,177 9,225,900 - - 8,255,177 9,225,900 Gain on disposal of assets11,709 1,265 2,250 14,505 13,959 15,770 Unrestricted investment earnings387,177 1,185,899 209,371 607,312 596,548 1,793,211 Total revenues43,146,271 48,978,421 36,289,141 34,728,311 79,435,412 83,706,732 Expenses: General government7,362,560 6,836,248 - - 7,362,560 6,836,248 Public safety14,751,479 14,833,647 - - 14,751,479 14,833,647 Public works8,993,290 9,046,873 - - 8,993,290 9,046,873 Parks7,732,777 5,971,565 - - 7,732,777 5,971,565 Interest on long-term debt2,129,490 1,923,821 - - 2,129,490 1,923,821 Utilities- - 11,833,994 10,625,811 11,833,994 10,625,811 Liquor- - 11,449,194 11,049,223 11,449,194 11,049,223 Aquatic center- - 798,369 787,663 798,369 787,663 Golf course- - 3,588,831 3,612,482 3,588,831 3,612,482 Community activity centers- - 4,636,375 4,502,849 4,636,375 4,502,849 Total expenses 40,969,596 38,612,154 32,306,763 30,578,028 73,276,359 69,190,182 Increase in net assets before transfers2,176,675 10,366,267 3,982,378 4,150,283 6,159,053 14,516,550 Transfers743,025 967,800 (743,025) (967,800) - - Increase in net assets2,919,700 11,334,067 3,239,353 3,182,483 6,159,053 14,516,550 Net assets - January 1104,541,135 93,207,068 59,877,998 56,695,515 164,419,133 149,902,583 Net assets - December 31107,460,835$ 104,541,135$ 63,117,351$ 59,877,998$ 170,578,186$ 164,419,133$ Governmental Activities Business-type Activities Totals Management’s Discussion and Analysis (Continued) 14 Governmental Activities Governmental activities increased the City's net assets by $2,919,700, accounting for 47% of the total growth in net assets. Key elements of this increase are as follows:  Property tax revenues increased by $1,591,998 (7%) during the year, which is equal to the property tax levy increase of 7% outlined in our 2009 budget.  The City also collected $7,587,386 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: Charges for services16% Operating grants and contributions 3% Capital grants and contributions 6%Property taxes 55% Other taxes19% Other1% Revenues by Source -Governmental Activities - 2 4 6 8 10 12 14 16 Generalgovernment Public safetyPublic worksParksInterest onlong-term debt Millions 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 $3,239,353 accounting for 53% 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 5% from 2008. The Utilities fund charges for services increased $1,145,239 (8%) from the previous year due to increased rates and consumption. The City commissioned a utility rate study for the 2009 year that called for significant rate increases to pay for current and future infrastructure needs.  Business-type activities made net transfers of $743,025 to governmental activities during 2009 to provide cash flow for operational and capital improvement needs. Charges for services 98.2% Operating grants and contributions 0.4% Other 1.4% Revenues by Source -Business-type Activities - 2 4 6 8 10 12 14 16 UtilitiesLiquorAquaticcenter Golf courseCommunityactivity centers Millions 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 $46,770,059, an increase of $4,702,160 in comparison with the prior year. Approximately 67% of this total amount ($31,528,465) constitutes unreserved fund balance. The remainder of the fund balance is reserved because it has already been committed 1) to provide for prepaid items ($18,241), 2) to pay committed contracts ($6,838,361), 3) for special projects ($200,343), 4) for construction projects ($2,730,517) or 5) to pay debt service ($5,454,132). 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 $12,031,358. As a measure of the general fund’s liquidity, unreserved fund balance represents 44% of total general fund expenditures. The fund balance of the City’s general fund decreased by $2,329,404 during the current fiscal year. Key factors in this decrease are as follows:  As part of the 2010 budget process, the City decided to move the equipment replacement program to the construction fund in 2010. This decision required a transfer of program assets ($3,244,468) from the general fund to the construction fund on December 31, 2009.  General fund property tax revenues increased by 3.8% in the current fiscal year despite a budgeted levy increase of over 4.3%. The shortfall is due to higher than expected delinquencies and abatements.  Total general fund expenditures decreased 4% in the current fiscal year despite a budgeted increase of 3.6%. The City made several mid-year adjustments to our spending patterns in 2009 due to declining revenues and economic uncertainty. Adjustments included deferred equipment purchases and maintenance, fewer part-time staff, voluntary furloughs, and other adjustments.  The liquor fund transferred $765,100 of profits to the general fund.  The general fund made transfers totaling $700,000 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 $2,210,875 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 $5,454,132, 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 $1,785,508. Fund balance increased during the year because of new levies for debt issued during 2009 that will increase required debt service beginning in February 2010. The construction fund balance increased by $7,383,155 in 2009 due to the equipment replacement program transfer from the general fund. Also, new debt was issued in 2009 to help finance construction of the new public works facility, which will be completed in 2010. 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 $11,844,846. The total growth in net assets was $3,181,676. Operating revenues and expenses in the utilities fund increased by 9.7% and 7.3%, respectively, in 2009, due to rate increases that are intended to help replace aging infrastructure. The City invested $5,388,636 in utility fund capital assets during 2009. Unrestricted net assets of the liquor fund at the end of the year amounted to $1,241,053. Total net assets decreased by $103,517. 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 $1,310,100 to other funds during 2009. The majority of this amount ($765,100) 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 $677,179. Aquatic center revenues decreased slightly from 2008 due to unfavorable weather for the aquatic center in 2009. The aquatic center remains profitable. Unrestricted net assets of the golf course fund at the end of the year amounted to a deficit of ($1,408,841), an increase of $121,561 from the prior year. Unrestricted net assets had been declining for a number of years leading up to 2009 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 future years. General Fund Budgetary Highlights During the year there was a $700,000 increase in appropriations between the original and final amended budget. 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 were $823,779 less than budget, as the weak economy affected our property tax, permit, and investment revenue. Due to these revenue declines, the City made several adjustments to our spending during the year as well, although the budget was never formally changed. The spending adjustments succeeded in saving $1,635,472 of budgeted expenditures, so that there was no need to draw upon existing fund balance for operations. Fund balance decreased, but only because of the equipment replacement program transfer to the construction fund. Many City departments were significantly under budget for the year, mostly due to the mid-year spending adjustments. All departments cut expenditures by reducing staffing levels through overtime, part-time staffing, attrition, and voluntary furloughs. No full-time employees were laid off during the year. In addition, departments deferred equipment purchases where possible. The City also saved money through lower than expected fuel, commodities, and insurance prices. 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, 2009, amounted to $191,546,125 (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 (a 13 percent increase for governmental activities and a 6 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 started construction on a new public works facility in 2009; construction in progress as of the close of the fiscal year has reached $13,294,948.  A variety of street construction, sidewalk and traffic signal projects began in 2009.  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 $11,179,667. City of Edina’s Capital Assets (Net of Depreciation) 2009 2008 2009 2008 2009 2008 Land and land improvements26,040,078$ 26,109,904$ 4,634,890$ 4,832,171$ 30,674,968$ 30,942,075$ Buildings and improvements34,810,399 35,576,980 5,924,799 6,486,370 40,735,198 42,063,350 Machinery and equipment8,108,214 8,003,483 2,771,677 2,098,994 10,879,891 10,102,477 Infrastructure24,727,802 24,946,400 44,202,165 41,962,368 68,929,967 66,908,768 Construction in progress28,872,101 13,412,590 11,454,000 9,968,964 40,326,101 23,381,554 Total122,558,594$ 108,049,357$ 68,987,531$ 65,348,867$ 191,546,125$ 173,398,224$ 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 $91,390,000, an increase of $15,095,000 from 2008. The key factor in this increase was the issuance of $22,720,000 of General Obligation and Public Project Revenue bonds related to the construction of the new public works facility. $24,020,000 is for general obligation improvement debt that is supported by property tax levies and special assessments. This amount increased from 2009 due to a new debt issue for the public works facility. $14,620,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special assessment program. This amount decreased from 2008 due to regularly scheduled principal payments on outstanding issues. An additional $4,125,000 of general obligation tax increment debt financed the City’s economic development program. This amount decreased in 2009 due to regularly scheduled principal payments on outstanding issues. Also outstanding is $22,650,000 public project revenue bonds which financed the City Hall and Police facility as well as two gymnasiums and the new public works facility. This amount increased in 2009 due to a new debt issue for the public works facility. There is a total of $25,975,000 in revenue bonds for improvements to the enterprise funds. Managem Tax in Gener Public Public Reven Total The City m State stat Estimated the City's Additiona Economi The City s the relativ Edina for Southdale Southdale Edina is selected a six percen Property v slowed si payable in ment’s Discu crement bonds ral obligation bonds improvement bond project revenue bo nue bonds maintains an A tutes limit the d Market Valu outstanding d l information o c Factors an strives to pro vely healthy February 20 e Center, the e hospital, as known for e as one of the nt finish in five values in Edin ince then. Es n 2010 after a ssion and A Ci 200 4,1$ s 24,0 ds 14,6 onds22,6 65,4$ Gove Aaa rating fro e amount of g ue. The curren debt is counte on the City’s nd Next Year’ ovide an unco local econom 010 was 5.4% nation’s first s well as sev xcellent publ e best in the c e years. na increased stimated mar a 1.3% increa nalysis (Con 1 ty of Edina’s 09 2008 25,00010,015$ 020,00010,420 620,00014,770 650,00014,675 - 415,000 49,880$ ernmental Activities om Moody's a general obliga nt debt limitat ed within the s long-term deb ’s Budget ommonly high my helps to m %, well below fully enclose veral corporat lic schools, a country. Ninet at a rapid pac rket value of se the year b ntinued) 19 s Outstandin 8 2009 ,000$ ,000 ,000 ,000 - 25,975,00 ,000 25,975,00$ s Business and an AAA ra ation debt a M tion for the Ci statutory limit bt can be fou h quality of lif make this go w the state an ed climate-con te headquarte as the Edina ty-seven perc ce for severa f all real est before. ng Debt 2008 - -$ - - - - - - 00 26,415,000 00 26,415,000$ -Type Activities ating from Sta Minnesota cit ity is $301,36 tation. nd in Note 5. fe for our res oal a reality. nd national le ntrolled regio ers. In additio a school syst cent of senior l years throug tate actually 2009 4,125,000$ $ 24,020,000 14,620,000 22,650,000 25,975,000 91,390,000$ $ Totals andard & Poo ty may issue 68,951. Only $ sidents and b The unemplo evels. The C nal shopping on to its hea tem has bee rs go to colle gh 2006, but t decreased 0 2008 10,015,000$ 10,420,000 14,770,000 14,675,000 26,415,000 76,295,000$ s or’s. to 3% of tot $46,670,000 o usinesses an oyment rate City is home t mall, Fairvie althy econom en consistent ge and eighty the growth ha 0.6% for taxe al of nd in to ew y, tly y- as es 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 0.5% for taxes payable in 2010, and has been increasing steadily ever since the state revised property tax law in 2001 for taxes payable in 2002, although that growth has slowed since 2006 along with values. 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 2010 fiscal year. The City’s adopted 2010 budget includes a property tax levy of $20,737,472 for the general fund, an increase of 2.2% from the 2009 general fund levy. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual Financial Report can also be found on the internet at www.cityofedina.com. CITY OF EDINA, MINNESOTA STATEMENT OF NET ASSETS December 31, 2009 GovernmentalBusiness-type Activities Activities Total Assets: Current assets: Cash and cash equivalents662,700$ 596,903$ 1,259,603$ Investments41,777,092 11,746,053 53,523,145 Restricted investments9,568,879 4,538,546 14,107,425 Accrued interest 81,480 23,696 105,176 Accounts receivable, net507,793 3,260,834 3,768,627 Special assessments receivable8,043,035 394,738 8,437,773 Internal balances(1,200,000) 1,200,000 - Due from other governments626,252 3,840 630,092 Prepaid items18,241 355,506 373,747 Inventory - 1,148,391 1,148,391 Total current assets 60,085,472 23,268,507 83,353,979 Noncurrent assets: Deferred charges367,703 149,993 517,696 Nondepreciable capital assets 46,305,930 12,542,965 58,848,895 Depreciable capital assets (net)76,252,664 56,444,566 132,697,230 Total noncurrent assets 122,926,297 69,137,524 192,063,821 Total assets 183,011,769 92,406,031 275,417,800 Liabilities: Current liabilities: Accounts payable3,645,786 788,646 4,434,432 Salaries payable751,851 251,762 1,003,613 Accrued interest payable985,995 363,894 1,349,889 Contracts payable829,425 85,616 915,041 Due to other governments12,192 177,712 189,904 Deposits payable 27,165 112,887 140,052 Unearned revenue6,354 105,645 111,999 Compensated absences payable1,436,533 455,873 1,892,406 Bonds payable2,975,000 2,600,000 5,575,000 Total current liabilities 10,670,301 4,942,035 15,612,336 Noncurrent liabilities: Net OPEB obligation513,059 70,553 583,612 Compensated absences payable2,154,800 683,809 2,838,609 Bonds payable, net of unamortized discount62,212,774 23,592,283 85,805,057 Total noncurrent liabilities64,880,633 24,346,645 89,227,278 Total liabilities75,550,934 29,288,680 104,839,614 Net assets: Invested in capital assets, net of related debt69,622,370 47,333,794 116,956,164 Restricted for tax increments7,132,865 - 7,132,865 Restricted for debt service- 624,837 624,837 Unrestricted30,705,600 15,158,720 45,864,320 Total net assets 107,460,835$ 63,117,351$ 170,578,186$ 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, 2009 OperatingCapital Charges forGrants andGrants and ExpensesServicesContributionsContributions Functions/Programs Primary government: Governmental activities: General government7,362,560$ 811,087$ 291,633$ -$ Public safety14,751,479 5,081,563 859,248 - Public works8,993,290 403,771 218,804 2,582,999 Parks7,732,777 400,729 8,100 - Interest on long-term debt2,129,490 - - - Total government activities40,969,596 6,697,150 1,377,785 2,582,999 Business-type activities: Utilities11,833,994 14,858,488 116,615 - Liquor11,449,194 12,655,777 - - Aquatic center798,369 859,816 - - Golf course3,588,831 3,660,466 - - Community activity centers4,636,375 3,606,684 19,302 - Total business-type activities32,306,763 35,641,231 135,917 - Total primary government73,276,359$ 42,338,381$ 1,513,702$ 2,582,999$ The accompanying notes are an integral part of these financial statements. Program Revenues 22 GovernmentalBusiness-type ActivitiesActivitiesTotal (6,259,840)$ -$ (6,259,840)$ (8,810,668) - (8,810,668) (5,787,716) - (5,787,716) (7,323,948) - (7,323,948) (2,129,490) - (2,129,490) (30,311,662) - (30,311,662) - 3,141,109 3,141,109 - 1,206,583 1,206,583 - 61,447 61,447 - 71,635 71,635 - (1,010,389) (1,010,389) - 3,470,385 3,470,385 (30,311,662) 3,470,385 (26,841,277) General revenues: Property taxes23,834,274 300,372 24,134,646 Tax increment collections7,587,386 - 7,587,386 Franchise taxes667,791 - 667,791 Unrestricted investment earnings387,177 209,371 596,548 Gain on disposal of capital assets11,709 2,250 13,959 Transfers743,025 (743,025) - Total general revenues and transfers33,231,362 (231,032) 33,000,330 Change in net assets2,919,700 3,239,353 6,159,053 Net assets - beginning104,541,135 59,877,998 164,419,133 Net assets - ending107,460,835$ 63,117,351$ 170,578,186$ 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, 2009 Housing &NonmajorTotal RedevelopmentDebt GovernmentalGovernmental GeneralAuthorityServiceConstructionFunds Funds Assets Cash and cash equivalents222,893$ 7,283$ 245,744$ 21,390$ 165,390$ 662,700$ Investments - unrestricted12,422,894 12,380,037 4,981,014 11,275,151 717,996 41,777,092 Investments - restricted - - - 9,568,879 - 9,568,879 Accrued interest 12,441 45,066 4,430 15,009 4,534 81,480 Accounts receivable 314,825 - - 11,776 181,192 507,793 Special assessments receivable - - 5,922,939 2,120,096 - 8,043,035 Due from other funds 130,501 - 200,000 - 450,000 780,501 Due from other governments491,121 1,662 22,944 10,450 100,075 626,252 Prepaid items 18,241 - - - - 18,241 Total assets 13,612,916$ 12,434,048$ 11,377,071$ 23,022,751$ 1,619,187$ 62,065,973$ Liabilities and fund balances Liabilities: Accounts payable 611,477$ 970,336$ -$ 2,049,287$ 14,686$ 3,645,786$ Salaries payable 731,821 - - 8,524 11,506 751,851 Contracts payable - - - 829,425 - 829,425 Due to other funds 200,000 130,501 - 1,550,000 100,000 1,980,501 Due to other governments 5,779 6,413 - - - 12,192 Deposits payable 14,240 - - 12,925 - 27,165 Unearned revenue - - - - 6,354 6,354 Deferred revenue - - 5,922,939 2,119,701 - 8,042,640 Total liabilities 1,563,317 1,107,250 5,922,939 6,569,862 132,546 15,295,914 Fund balance: Reserved for: Prepaid items 18,241 - - - - 18,241 Encumbrances - - - 6,838,361 - 6,838,361 Special projects - - - 200,343 - 200,343 Construction projects - - - 2,730,517 - 2,730,517 Debt service - - 5,454,132 - - 5,454,132 Unreserved: Designated, reported in: General Fund 11,094,859 - - - - 11,094,859 Capital Project Funds - - - 6,683,668 - 6,683,668 Undesignated, reported in: General Fund 936,499 - - - - 936,499 Special Revenue Funds - 11,326,798 - - 1,486,641 12,813,439 Total fund balance 12,049,599 11,326,798 5,454,132 16,452,889 1,486,641 46,770,059 Total liabilities and fund balances 13,612,916$ 12,434,048$ 11,377,071$ 23,022,751$ 1,619,187$ 62,065,973$ Fund balance reported above 46,770,059$ 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 122,558,594 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the funds 8,042,640 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.(69,910,458) Net assets of governmental activities 107,460,835$ 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, 2009 Housing &NonmajorTotal RedevelopmentDebt GovernmentalGovernmental GeneralAuthorityServiceConstructionFundsFunds Revenues: General property taxes 20,742,167$ -$ 3,092,107$ -$ -$ 23,834,274$ Tax increment collections - 7,587,386 - - - 7,587,386 Special assessments - - 1,508,662 1,195,171 - 2,703,833 Franchise fees - - - - 667,791 667,791 License and permits 2,081,139 - - 23,828 - 2,104,967 Intergovernmental 884,649 - - 276,129 346,392 1,507,170 Charges for services 2,759,164 - - 146,246 - 2,905,410 Fines and forfeitures 1,148,440 - - - 76,543 1,224,983 Investment income 37,668 183,592 35,151 109,936 20,830 387,177 Rental of property 342,446 - - 1,170 - 343,616 Other revenues 43,406 - - 14,950 101,679 160,035 Total revenues 28,039,079 7,770,978 4,635,920 1,767,430 1,213,235 43,426,642 Expenditures: Current: General government 4,007,381 1,631,984 - 306,787 949,177 6,895,329 Public safety 13,442,038 - - 60,366 190,282 13,692,686 Public works 5,597,264 - - 314,494 - 5,911,758 Parks 3,569,655 - - 118,408 - 3,688,063 Capital outlay: General government 16,653 - - 405,492 - 422,145 Public safety 320,573 - - 234,330 - 554,903 Public works 54,149 - - 19,232,675 - 19,286,824 Parks 165,994 2,215,633 - 351,566 - 2,733,193 Debt service: Bond principal - - 7,415,000 - - 7,415,000 Interest and fiscal charges - - 1,841,342 - - 1,841,342 Total expenditures 27,173,707 3,847,617 9,256,342 21,024,118 1,139,459 62,441,243 Revenues over (under) expenditures 865,372 3,923,361 (4,620,422) (19,256,688) 73,776 (19,014,601) Other financing sources (uses): Transfers in 765,100 - 6,338,205 4,244,468 - 11,347,773 Transfers out (3,994,468) (6,134,236) - (476,044) - (10,604,748) Sale of capital assets 34,592 - - - - 34,592 Bonds issued - - 67,000 22,883,000 - 22,950,000 Premium on bonds issued - - 725 64,040 - 64,765 Discount on bonds issued - - - (75,621) - (75,621) Total other financing sources (uses)(3,194,776) (6,134,236) 6,405,930 26,639,843 - 23,716,761 Net increase (decrease) in fund balance (2,329,404) (2,210,875) 1,785,508 7,383,155 73,776 4,702,160 Fund balance - January 114,379,003 13,537,673 3,668,624 9,069,734 1,412,865 42,067,899 Fund balance - December 3112,049,599$ 11,326,798$ 5,454,132$ 16,452,889$ 1,486,641$ 46,770,059$ 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, 2009 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)4,702,160$ 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.14,532,120 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.(22,883) 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.(292,080) The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items.(15,388,617) 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.(611,000) Change in net assets of governmental activities (page 23)2,919,700$ The accompanying notes are an integral part of these financial statements. 27 CITY OF EDINA, MINNESOTA STATEMENT OF NET ASSETS PROPRIETARY FUNDS December 31, 2009 Nonmajor AquaticGolfEnterprise Utilities Liquor Center Course Funds Total Assets: Current assets: Cash and cash equivalents 458,470$ 571$ 107,848$ 12,949$ 17,065$ 596,903$ Investments - unrestricted 8,510,735 - - - 3,235,318 11,746,053 Investments - restricted 2,233,114 - - - 2,305,432 4,538,546 Interest receivable 3,911 - - - 19,785 23,696 Accounts receivable, net 3,127,841 950 - 1,613 130,430 3,260,834 Special assessments receivable394,738 - - - - 394,738 Due from other funds - 1,000,000 1,200,000 - 116,000 2,316,000 Due from other governments 3,840 - - - - 3,840 Prepaid expenses 355,506 - - - - 355,506 Inventory 24,827 1,058,199 - 52,622 12,743 1,148,391 Total current assets 15,112,982 2,059,720 1,307,848 67,184 5,836,773 24,384,507 Noncurrent assets: Deferred charges 100,931 - 9,575 11,329 28,158 149,993 Net capital assets 56,772,399 1,331,625 1,758,093 4,928,678 4,196,736 68,987,531 Total noncurrent assets 56,873,330 1,331,625 1,767,668 4,940,007 4,224,894 69,137,524 Total assets 71,986,312 3,391,345 3,075,516 5,007,191 10,061,667 93,522,031 Liabilities: Current liabilities: Accounts payable 281,915 341,754 592 33,718 130,667 788,646 Salaries payable 61,781 56,206 1,015 51,003 81,757 251,762 Accrued interest payable 335,278 - 13,233 15,383 - 363,894 Contracts payable 85,616 - - - - 85,616 Due to other funds - - - 1,000,000 116,000 1,116,000 Due to other governments 14,062 149,214 567 6,144 7,725 177,712 Deposits payable 112,216 - - 671 - 112,887 Unearned revenue - 4,545 - 45,141 55,959 105,645 Compensated absences payable 90,027 101,846 - 127,168 136,832 455,873 Bonds payable - current 2,185,000 - 135,000 280,000 - 2,600,000 Total current liabilities 3,165,895 653,565 150,407 1,559,228 528,940 6,058,035 Noncurrent liabilities: Net OPEB obligation 20,018 12,333 - 17,374 20,828 70,553 Compensated absences payable135,040 152,769 - 190,752 205,248 683,809 Bonds payable, net of unamortized discounts 19,527,893 - 725,741 884,987 2,453,662 23,592,283 Total noncurrent liabilities 19,682,951 165,102 725,741 1,093,113 2,679,738 24,346,645 Total liabilities 22,848,846 818,667 876,148 2,652,341 3,208,678 30,404,680 Net assets: Invested in capital assets, net of related debt 37,292,620 1,331,625 897,352 3,763,691 4,048,506 47,333,794 Restricted for debt service - - 624,837 - - 624,837 Unrestricted 11,844,846 1,241,053 677,179 (1,408,841) 2,804,483 15,158,720 Total net assets 49,137,466$ 2,572,678$ 2,199,368$ 2,354,850$ 6,852,989$ 63,117,351$ 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, 2009 Nonmajor AquaticGolfEnterprise Utilities Liquor Center Course Funds Total Operating revenues: Sales - liquor -$ 12,642,630$ -$ 146,632$ -$ 12,789,262$ Sales - retail - - 4,759 212,886 43,909 261,554 Sales - utilities 14,484,863 - - - - 14,484,863 Sales - concessions - - 101,398 230,776 65,549 397,723 Memberships - - 464,570 123,761 86,290 674,621 Admissions - - 261,621 264,671 675,447 1,201,739 Building rental - - 27,468 81,728 1,398,011 1,507,207 Rental of equipment - - - 359,277 106,758 466,035 Greens fees - - - 1,880,610 215,710 2,096,320 Other fees 372,935 - - 358,333 1,015,010 1,746,278 Total operating revenues 14,857,798 12,642,630 859,816 3,658,674 3,606,684 35,625,602 Operating expenses: Cost of sales and services 52,786 9,300,699 28,670 338,248 73,878 9,794,281 Personal services 1,732,097 1,361,602 261,365 1,774,558 2,095,029 7,224,651 Contractual services 5,989,392 472,412 118,074 580,479 1,432,638 8,592,995 Commodities 888,411 62,538 142,570 323,311 414,341 1,831,171 Central Services 501,693 186,144 25,056 110,796 155,897 979,586 Depreciation 1,650,837 65,799 194,928 414,656 464,490 2,790,710 Total operating expenses10,815,216 11,449,194 770,663 3,542,048 4,636,273 31,213,394 Operating income (loss)4,042,582 1,193,436 89,153 116,626 (1,029,589) 4,412,208 Nonoperating revenues (expenses): Excess tax increments - - - 100,124 200,248 300,372 Intergovernmental 116,615 - - - - 116,615 Investment income 140,567 - - - 68,804 209,371 Donations - - - - 19,302 19,302 Interest and fiscal charges (811,587) - (26,942) (34,362) (42) (872,933) Amortization of bond discount 8,005 - (764) (820) (60) 6,361 Gain (loss) on sale of capital asset - - - (11,601) 2,250 (9,351) Miscellaneous 690 13,147 - 1,792 - 15,629 Special items (215,196) - - - - (215,196) Total nonoperating revenues (expenses)(760,906) 13,147 (27,706) 55,133 290,502 (429,830) Income (loss) before transfers 3,281,676 1,206,583 61,447 171,759 (739,087) 3,982,378 Transfers: Transfers in - - - 170,000 497,075 667,075 Transfers out (100,000) (1,310,100) - - - (1,410,100) Total transfers (100,000) (1,310,100) - 170,000 497,075 (743,025) Change in net assets 3,181,676 (103,517) 61,447 341,759 (242,012) 3,239,353 Net assets - January 1 45,955,790 2,676,195 2,137,921 2,013,091 7,095,001 59,877,998 Net assets - December 31 49,137,466$ 2,572,678$ 2,199,368$ 2,354,850$ 6,852,989$ 63,117,351$ 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, 2009 Nonmajor AquaticGolfEnterprise Utilities Liquor Center Course Funds Total Cash flows from operating activities: Receipts from customers and users15,030,675$ 12,643,860$ 859,805$ 3,661,488$ 3,605,996$ 35,801,824$ Payment to suppliers (7,759,304) (9,988,420) (314,722) (1,387,799) (2,260,207) (21,710,452) Payment to employees (1,692,107) (1,322,943) (260,723) (1,734,978) (2,046,052) (7,056,803) Donations - - - - 19,302 19,302 Miscellaneous revenue 690 13,147 - 1,792 - 15,629 Special items (215,196) - - - - (215,196) Net cash provided by (used in) operating activities5,364,758 1,345,644 284,360 540,503 (680,961) 6,854,304 Cash flows from noncapital financing activities: Excess tax increments - - - 100,124 200,248 300,372 State grant 116,615 - - - - 116,615 Transfer from other funds - - - 170,000 497,075 667,075 Transfer to other funds (100,000) (1,310,100) - - - (1,410,100) Proceeds from interfund borrowing - 100,000 185,000 - 101,000 386,000 Payment of interfund borrowing - - (1,200,000) (100,000) (101,000) (1,401,000) Net cash provided by (used in) noncapital financing activities16,615 (1,210,100) (1,015,000) 170,124 697,323 (1,341,038) Cash flows from capital and related financing activities: Proceeds from capital debt - - - - 2,425,443 2,425,443 Proceeds from refunding debt - - 858,033 1,159,096 - 2,017,129 Deposit to refunding escrow - - (845,000) (1,140,000) - (1,985,000) Acquisition of capital assets (5,388,636) (157,853) (14,915) (173,180) (718,719) (6,453,303) Proceeds from sale of capital assets - - - 12,328 2,250 14,578 Principal paid on bonds (2,045,000) - (120,000) (515,000) (225,000) (2,905,000) Interest paid on bonds (803,157) - (34,013) (53,953) (4,162) (895,285) Net cash provided by (used in) capital and related financing activities (8,236,793) (157,853) (155,895) (710,709) 1,479,812 (7,781,438) Cash flows from investing activities: Proceeds from sale of investments3,025,663 - - - 715,922 3,741,585 Purchase of investments - - - - (2,425,591) (2,425,591) Investment income 214,681 - - - 184,226 398,907 Net cash flows provided by (used in) investing activities3,240,344 - - - (1,525,443) 1,714,901 Net increase (decrease) in cash and cash equivalents 384,924 (22,309) (886,535) (82) (29,269) (553,271) Cash and cash equivalents - January 1 73,546 22,880 994,383 13,031 46,334 1,150,174 Cash and cash equivalents - December 31458,470$ 571$ 107,848$ 12,949$ 17,065$ 596,903$ 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, 2009 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) 4,042,582$ 1,193,436$ 89,153$ 116,626$ (1,029,589)$ 4,412,208$ Adjustments to reconcile operating income (loss) to net cash flows provided by (used in) operating activities: Depreciation 1,650,837 65,799 194,928 414,656 464,490 2,790,710 Donations - - - - 19,302 19,302 Miscellaneous revenue 690 13,147 - 1,792 - 15,629 Special items (215,196) - - - - (215,196) Changes in assets and liabilities: Decrease (increase) in receivables324,192 550 - 347 (69) 325,020 Decrease (increase) in special assessments (153,431) - - - - (153,431) Decrease (increase) in due from other governments 2,116 - - - - 2,116 Decrease (increase) in inventory12,330 30,173 - (3,649) (1,307) 37,547 Decrease (increase) in prepaid items (11,100) - - - - (11,100) Increase (decrease) in accounts payable (244,071) (9,286) 35 (20,654) (182,397) (456,373) Increase (decrease) in salaries payable 11,648 7,570 642 9,508 7,927 37,295 Increase (decrease) in contracts payable (88,143) - - - - (88,143) Increase (decrease) in due to other governments 3,962 12,486 (387) (128) 251 16,184 Increase (decrease) in deposits - - - (10,534) - (10,534) Increase (decrease) in unearned revenue - 680 (11) 2,467 (619) 2,517 Increase (decrease) in net OPEB obligation 9,471 5,835 - 8,219 9,854 33,379 Increase (decrease) in compensated absences 18,871 25,254 - 21,853 31,196 97,174 Total adjustments 1,322,176 152,208 195,207 423,877 348,628 2,442,096 Net cash provided by (used in) operating activities5,364,758$ 1,345,644$ 284,360$ 540,503$ (680,961)$ 6,854,304$ Noncash investing activities: Increase (decrease) in fair value of investments (8,566)$ -$ -$ -$ (105,245)$ (113,811)$ 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, 2009 Agency Funds Assets Cash 177,048$ Investments 245,000 Total assets 422,048$ Liabilities Accounts payable 34,406$ Salaries payable 4,716 Due to other governmental units 382,926 Total liabilities 422,048$ The accompanying notes are an integral part of these financial statements. 32 CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 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, 2009 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, 2009 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, Public Safety Training Facility, and I-494 Corridor Commission 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, 2009 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, 2009 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, 2009 are planned to be eliminated in 2010. 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, 2009 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, 2009 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, 2009 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, 2009 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, 2009 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 65,415,000$ Plus: issuance premium 94,042 Less: issuance discount (321,268) Less: deferred charge for issuance costs (367,703) Accrued interest payable 985,995 OPEB obligation 513,059 Compensated absences 3,591,333 Net adjustment to reduce fund balance - total governmental funds to arrive at net assets - governmental activities69,910,458$ 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, 2009 43 Capital outlay 19,818,160$ Depreciation expense (5,286,040) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental funds14,532,120$ Another element of that reconciliation states that “The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.” The details of this difference are as follows: Debt issued or incurred: Issuance of general obligation bonds14,230,000$ Issuance of public project revenue bonds8,720,000 Less issuance costs(135,527) Less discounts(75,621) Plus premiums64,765 Principal repayments: Tax increment debt(5,890,000) General obligation debt(630,000) Permanent improvement revolving debt(150,000) Public project revenue debt(745,000) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities15,388,617$ 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: CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 44 OPEB obligation (242,729)$ Compensated absences (80,123) Accrued interest (234,517) Amortization of issuance costs (33,247) Amortization of bond discounts and premiums (20,384) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities(611,000)$ Note 3 CASH AND INVESTMENTS A. COMPONENTS OF CASH AND INVESTMENTS Cash and investments at year-end consist of the following: Deposits 1,417,565$ Cash on hand 19,085 Investments 67,875,570 69,312,220$ Cash and investments are presented in the financial statements as follows: Cash and cash equivalents - Statement of Net Assets 1,259,603$ Investments - Statement of Net Assets 53,523,144 Restricted investments - Statement of Net Assets 14,107,425 Cash and investments - Statement of Fiduciary Net Assets 422,048 69,312,220$ The City had restricted investments of $14,107,425 as of December 31, 2009 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. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 45 Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills, notes, and bonds; issues of U.S. government agencies; general obligations rated “A” or better; revenue obligations rated “AA” or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The City’s investment policy does not contain further restrictions on the types of collateral required. At year-end, the carrying amount of the City’s deposits was $1,417,565 while the balance on the bank records was $2,298,284. At December 31, 2009, all deposits were fully covered by federal depository insurance, surety bonds, or by collateral held by the City’s agent in the City’s name. C. INVESTMENTS The City has the following investments at year end: Rating Agency < 1 1 to 5 5 to 10 10 +Total U.S. TreasuriesN/AN/A -$ 64,631$ 753,494$ 599,169$ 1,417,294$ GNMA N/AN/A - - - 33,813 33,813 SBA NotesAAA/AaaS&P/Mdy's3,944 54,434 485,400 42,526 586,304 U.S. Agencies AAA/AaaS&P/Mdy's5,274,355 13,050,897 2,611,137 2,704,226 23,640,615 Municipals N/RN/A 30,122 - - - 30,122 Municipals AS&P 10,041 - - - 10,041 MunicipalsAAA/AAAS&P/Fitch30,291 10,603 73,459 - 114,353 MunicipalsAA/Aa1S&P/Mdy's - - - 2,595,000 2,595,000 Negotiable CD'sN/RN/A6,988,183 97,879 - - 7,086,062 Interfund DebtN/RN/A - 1,400,000 - - 1,400,000 12,336,936$ 14,678,444$ 3,923,490$ 5,974,734$ 36,913,604 Money Market*AAAS&P28,390,629 4M Fund*N/RN/A2,571,337 Total investments 67,875,570$ 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. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 46 Investments are subject to various risks, the following of which are considered the most significant: Custodial credit risk – For investments, this is the risk that in the event of a failure of the counterparty to an investment transaction (typically a broker-dealer) the City would not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investment policy specifically addresses custodial credit risk, requiring the City to limit its exposure by purchasing insured or registered investments, or by the control of who holds the securities. 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 $10,000,000, that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City’s investment policies specifically address credit risk, further limiting the City’s exposure to credit risk by requiring that all state and local government obligations to be rated “AA” or better by a national rating agency. Concentration risk – This is the risk associated with investing a significant portion of the City’s investment (considered 5 percent or more) in the securities of a single issuer, excluding U.S. guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City’s investment policies specifically address the City’s desire to limit concentration risk, but do not set specific guidelines for measurement of this risk. At year-end, the City’s investments include 7% and 24% in securities issued by FHLMC and FNMA, respectively. Interest rate risk – This is the risk of potential variability in the fair value of fixed rate investment resulting in changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City’s investment policies CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 47 specifically address the City’s desire to limit interest rate risk, but do not set specific guidelines for measurement of this risk. Note 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2009 is as follows: Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets not being depreciated: Land15,981,364$ -$ -$ 15,981,364$ Investment in joint venture1,452,465 - - 1,452,465 Construction in progress13,412,590 19,197,487 (3,737,976) 28,872,101 Total capital assets not being depreciated30,846,419 19,197,487 (3,737,976) 46,305,930 Capital assets being depreciated: Land improvements21,699,762 693,134 - 22,392,896 Buildings and structures 35,018,165 344,266 - 35,362,431 Furniture and office equipment 2,615,664 935,934 (180,865) 3,370,733 Vehicles and equipment 13,888,737 574,109 (602,698) 13,860,148 Infrastructure 69,003,514 1,398,379 (203,145) 70,198,748 Parks 14,669,282 412,827 (99,001) 14,983,108 Total capital assets being depreciated156,895,124 4,358,649 (1,085,709) 160,168,064 Less accumulated depreciation for: Land improvements(11,571,222) (762,960) - (12,334,182) Buildings and structures (9,764,664) (985,309) - (10,749,973) Furniture and office equipment (1,255,307) (244,633) 180,865 (1,319,075) Vehicles and equipment (7,245,611) (1,140,594) 582,613 (7,803,592) Infrastructure (44,057,114) (1,616,977) 203,145 (45,470,946) Parks (5,798,268) (535,567) 96,203 (6,237,632) Total accumulated depreciation(79,692,186) (5,286,040) 1,062,826 (83,915,400) Total capital assets being depreciated, net77,202,938 (927,391) (22,883) 76,252,664 Governmental activities capital assets, net108,049,357$ 18,270,096$ (3,760,859)$ 122,558,594$ 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, 2009 48 Beginning Ending Balance Increases Decreases Balance Business-type activities: Capital assets not being depreciated: Land1,088,965$ -$ -$ 1,088,965$ Construction in progress9,968,964 5,580,286 (4,095,250) 11,454,000 Total capital assets not being depreciated11,057,929 5,580,286 (4,095,250) 12,542,965 Capital assets being depreciated: Land improvements & golf course8,080,614 102,704 - 8,183,318 Buildings and structures16,102,655 35,735 - 16,138,390 Furniture and office equipment121,680 38,462 - 160,142 Vehicles and equipment4,915,278 1,070,810 (53,211) 5,932,877 Utility infrastructure68,448,170 3,720,556 - 72,168,726 Lease property capital lease468,580 - - 468,580 Total capital assets being depreciated98,136,977 4,968,267 (53,211) 103,052,033 Less accumulated depreciation for: Land improvements & golf course(4,337,408) (299,985) - (4,637,393) Buildings and structures(9,616,285) (597,306) - (10,213,591) Furniture and office equipment(111,652) (9,982) - (121,634) Vehicles and equipment(2,826,312) (402,678) 29,282 (3,199,708) Utility infrastructure(26,485,802) (1,480,759) - (27,966,561) Lease property capital lease(468,580) - - (468,580) Total accumulated depreciation(43,846,039) (2,790,710) 29,282 (46,607,467) Total capital assets being depreciated, net54,290,938 2,177,557 (23,929) 56,444,566 Business-type activities capital assets, net65,348,867$ 7,757,843$ (4,119,179)$ 68,987,531$ Depreciation expense was charged to functions/programs of the primary government as follows: CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 49 Governmental activities: General government505,794$ Public safety640,274 Public works2,371,507 Parks1,768,465 Total depreciation expense - governmental activities5,286,040$ Business-type activities: Utilities 1,650,837$ Liquor 65,799 Aquatic Center 194,928 Golf Course 414,656 Arena 286,241 Art Center 30,124 Edinborough Park/Centennial Lakes 148,125 Total depreciation expense - business-type activities2,790,710$ CONSTRUCTION COMMITMENTS At December 31, 2009, the City had construction project contracts in progress. The commitments related to the remaining contract balances are summarized as follows: ContractRemaining Project #Project DescriptionAmountCommitment 08-1 EngCountry Club Reconstruction14,289,890$ 1,348,005$ 08-6 EngStreet/Sidewalk Reconstruction2,145,508 4,348 09-5 EngPromenade1,952,097 22,029 09-6 EngStreet/Sidewalk Reconstruction720,380 38,024 09-7 EngStreet/Sidewalk Reconstruction718,139 7,638 09-11 EngStreet/Sidewalk Reconstruction1,586,586 17,366 VariousNew Public Works Facility10,613,873 6,074,954 7,512,364$ Note 5 LONG-TERM DEBT The City has five types of bonded debt outstanding at December 31, 2009: 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 payable primarily from enterprise revenue with any deficiency to be provided for by general CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 50 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, 2009, the governmental long-term bonded debt of the financial reporting entity consisted of the following: Final InterestIssueMaturityOriginalPayable Rates Date Date Issue 12/31/09 Tax Increment Bonds: Tax Increment Bonds, Series 2000A4.30-4.80%9/6/20002/1/20112,620,000$ 630,000$ Tax Increment Bonds, Series 2002B3.00%8/5/20022/1/20121,400,000 1,400,000 Tax Increment Refunding Bonds, Series 2005D3.00-3.40%7/19/20052/1/20133,505,000 2,095,000 Total Tax Increment Bonds 7,525,000 4,125,000 General Obligation Bonds: General Obligation - Park & Recreation Refunding, 2005A3.50-4.00%7/19/20052/1/20175,375,000 4,120,000 General Obligation - Capital Improvement Plan, 2007A4.00-4.25%5/24/20072/1/20285,865,000 5,670,000 General Obligation - Capital Improvement Plan, 2009A3.00-4.40%4/29/20092/1/203014,000,000 14,000,000 General Obligation - Equipment Certificates, 2009B2.00-3.00%4/29/20091/1/2012230,000 230,000 Total General Obligation Bonds25,470,000 24,020,000 Permanent Improvement Revolving (PIR) Bonds: Permanent Improvement Revolving, 2005E 3.00-3.75%9/13/20052/1/20161,460,000 995,000 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 Bonds15,085,000 14,620,000 Public Project Revenue Bonds: Public Project Revenue, Series 20024.00-5.25%1/1/20022/1/202112,410,000 9,075,000 Public Project Revenue, Series 20053.50-4.13%9/13/20055/1/20265,425,000 4,855,000 Public Project Revenue, Series 2009A2.10-4.55%11/24/20092/1/20302,595,000 2,595,000 Public Project Revenue, Series 2009B1.95-5.80%11/24/20092/1/20306,125,000 6,125,000 Total Public Project Revenue Bonds 26,555,000 22,650,000 Total bonded indebtedness - governmental activities74,635,000$ 65,415,000$ CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 51 BUSINESS-TYPE ACTIVITIES Final InterestIssueMaturityOriginalPayable Rates Date Date Issue 12/31/09 Revenue Bonds: Recreational Facility Bonds, Series 2009B2.00-3.00%4/29/20091/1/20132,010,000$ 2,010,000$ Recreational Facility Bonds, Series 2009C2.00-4.00%12/10/20092/1/20302,440,000 2,440,000 Utility Revenue Bonds, Series 2003C1.10-3.55%3/1/20032/1/20133,200,000 1,405,000 Utility Revenue Bonds, Series 2007B 4.00%5/24/20072/1/20178,210,000 6,740,000 Utility Revenue Bonds, Series 2008A3.00-4.25%8/28/20082/1/201913,985,000 13,380,000 Total Revenue Bonds29,845,000 25,975,000 Total bonded indebtedness - business-type activities29,845,000$ 25,975,000$ Annual debt service requirements to maturity for the City’s bonds are as follows: Principal Interest Principal Interest Principal Interest 2010 805,000$ 125,820$ 735,000$ 1,016,976$ 655,000$ 520,278$ 2011 840,000 94,359 1,265,000 852,680 1,330,000 486,944 2012 1,930,000 48,445 1,310,000 810,293 1,375,000 442,069 2013 550,000 9,350 1,270,000 766,655 1,415,000 395,269 2014 - - 1,310,000 721,799 1,455,000 346,231 2015-2019 - - 6,080,000 2,905,192 7,460,000 904,525 2020-2024 - - 5,195,000 1,966,223 930,000 18,600 2025-2029 - - 5,880,000 827,596 - - 2030 - - 975,000 21,450 - - Total 4,125,000$ 277,974$ 24,020,000$ 9,888,864$ 14,620,000$ 3,113,916$ Principal Interest Principal Interest 2010 780,000$ 632,880$ 2,600,000$ 869,086$ 2011 810,000 1,063,316 2,755,000 808,335 2012 975,000 953,448 2,880,000 718,226 2013 1,255,000 910,821 2,985,000 622,636 2014 1,305,000 860,166 2,330,000 531,925 2015-2019 7,370,000 3,385,491 10,895,000 1,303,195 2020-2024 5,925,000 1,700,844 625,000 245,213 2025-2029 3,595,000 664,953 740,000 109,600 2030 635,000 34,330 165,000 3,300 Total 22,650,000$ 10,206,249$ 25,975,000$ 5,211,516$ Governmental Activities General Public ImprovementTax Public Project Revenue Business-type ActivitiesGovernmental Activities Obligation Bonds BondsRevenue Bonds Revolving Bonds Year Ending December 31 Year Ending December 31 Increment Bonds CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 52 CHANGE IN LONG-TERM LIABILITIES Long-term liability activity for the year ended December 31, 2009, was as follows: Beginning EndingDue Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: Tax increment10,015,000$ -$ (5,890,000)$ 4,125,000$ 805,000$ General obligation10,420,000 14,230,000 (630,000) 24,020,000 735,000 PIR 14,770,000 - (150,000) 14,620,000 655,000 Public project revenue14,675,000 8,720,000 (745,000) 22,650,000 780,000 Less deferred amounts: Discount on bonds(273,307) (75,621) 27,660 (321,268) - Premiums36,553 64,765 (7,276) 94,042 - Total bonds payable49,643,246 22,939,144 (7,394,616) 65,187,774 2,975,000 Compensated absences3,511,210 1,741,551 (1,661,428) 3,591,333 1,436,533 Governmental activity Long-term liabilities53,154,456$ 24,680,695$ (9,056,044)$ 68,779,107$ 4,411,533$ Business-type activities: Bonds payable: Revenue bonds26,415,000$ 4,450,000$ (4,890,000)$ 25,975,000$ 2,600,000$ Less deferred amounts: Discount on bonds(17,504) - 3,834 (13,670) - Premiums216,397 41,997 (27,442) 230,952 - Total bonds payable26,613,893 4,491,997 (4,913,608) 26,192,282 2,600,000 Compensated absences1,042,508 380,253 (283,079) 1,139,682 455,873 Business-type activity Long-term liabilities27,656,401$ 4,872,250$ (5,196,687)$ 27,331,964$ 3,055,873$ For governmental activities, compensated absences are generally liquidated by the general fund. The City issued $2,240,000 of 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 bonds, Series 1999B and the 2010 through 2017 maturities of the $4,620,000 General Obligation bonds, Series 2001A and to fund the purchase of capital equipment. The current refundings were undertaken to reduce total debt service payments by $124,874 and resulted in an economic gain of $117,750. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 53 Note 6 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Edina's legal debt margin for 2009 is computed as follows: December 31, 2009 Market Value (after fiscal disparities)10,045,631,700$ Debt Limit (3% of Market Value)301,368,951$ Amount of debt applicable to debt limit: Total bonded debt 91,390,000$ Less: Tax increment bonds (4,125,000) Public improvement revolving bonds (14,620,000) Revenue bonds (25,975,000) Total debt applicable to debt limit 46,670,000$ Legal debt margin 254,698,951$ 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, 2009 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, 2009 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 9.1% and 6.0%, respectively, of their covered salary in 2009. PEPFF members were required to contribute 9.4% of their covered salary in 2009. The City of Edina is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan PERF members, 6.75% for Coordinated Plan PERF members, and 14.1% for PEPFF members. Employer contribution rates for the Coordinated Plan will increase to 7% effective January 1, 2010. The City’s contributions to the Public Employees Retirement Fund for the years ending December 31, 2009, 2008, and 2007 were $930,938, $860,091, and $785,482, respectively. The City’s contributions to the Public Employees Police and Fire Fund for the years ending December 31, 2009, 2008, and 2007 were $941,565, $855,910, and $738,399, 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 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, 2009 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 13,838 Adjustment to annual required contribution (9,987) Annual OPEB cost (expense)443,317 Contributions made (167,209) Increase in net OPEB obligation 276,108 Net OPEB obligation - beginning of year 307,504 Net OPEB obligation - end of year 583,612$ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the past two years are as follows: Percentage of FiscalAnnualEmployerAnnual OPEBNet OPEB Year Ended OPEB Cost Contribution Cost Contributed Obligation December 31, 2008439,466$ 131,962$ 30.0%307,504$ December 31, 2009443,317 167,209 37.7%583,612 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. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 57 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. 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, 2009, is as follows: Payable Fund Amount General HRA 130,501$ Debt Service General 200,000 Police Special Revenue CDBG 100,000 Construction 350,000 Liquor Golf Course 1,000,000 Aquatic Center Construction 1,200,000 Art Center Arena 116,000 Total 3,096,501$ 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, 2009 58 Debt Nonmajor General Service Construction Golf Course Business-type Total Transfer out: General Fund-$ -$ 3,994,468$ -$ -$ 3,994,468$ HRA Fund- 6,134,236 - - - 6,134,236 Construction Fund- 203,969 - - 272,075 476,044 Utilities Fund- - 100,000 - - 100,000 Liquor Fund765,100 - 150,000 170,000 225,000 1,310,100 765,100$ 6,338,205$ 4,244,468$ 170,000$ 497,075$ 12,014,848$ 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 $765,100, $170,000, $145,000 and $80,000 to the general fund, golf course fund, art center, and arena funds, respectively, to subsidize operations. 2. The construction fund transferred $22,075 and $250,000 to the arena and edinborough funds, respectively, to subsidize capital improvements to those facilities. 3. The HRA fund transferred $6,134,236 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 2009 budget. 5. The construction fund transferred $203,969 to the debt service fund to pay a portion of the debt service on the gymnasium bonds. 6. The general fund transferred $700,000 of the 2008 unreserved and undesignated fund balance to the construction fund according to the City’s fund balance policies to fund the capital improvement program. 7. The general fund transferred $3,244,468 to the construction fund to move the equipment replacement program to the construction fund. Note 10 TAX INCREMENT DISTRICTS The City of Edina is the administering authority for the following Tax Increment Districts: District number 1200 (50th and France Commercial Area) is a redevelopment district established in 1974 pursuant to Minnesota Statutes with a termination date of 2009. District number 1201 (Southeast Edina Redevelopment District – Edinborough) is a redevelopment district established in 1977 pursuant to Minnesota Statutes with a termination date of 2009. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 59 District number 1202 (Grandview Commercial Area) is a redevelopment district established in 1984 pursuant to Minnesota Statutes with a termination date of 2010. District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination date of 2016. District number 1207 (70th and Cahill Economic Development District) is an economic district established in 1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment previously collected is available for expenditures within the larger development district that includes the Wooddale – Valley View commercial area. Tax capacity and debt for this district is not included in the following schedule as county reports no longer indicate captured tax capacity for this district and no debt is outstanding. The following table reflects values as of December 31, 2009: TIF #1200TIF #1201TIF #1202TIF #1203Total Original tax capacity112,826$ 94,319$ 164,885$ 229,691$ 601,721$ Current tax capacity1,635,539 3,146,003 1,656,552 4,470,822 10,908,916 Tax capacity change1,522,713 3,051,684 1,491,667 4,241,131 10,307,195 Captured tax capacity value: Retained captured tax capacity1,522,713$ 3,051,684$ 1,491,667$ 4,241,131$ 10,307,195$ Total bonds issued (general obligation)5,360,000$ 22,445,000$ 9,637,555$ 35,894,724$ 73,337,279$ Amounts redeemed5,360,000 22,445,000 7,607,555 33,799,724 69,212,279 Outstanding bonds at December 31, 2009-$ -$ 2,030,000$ 2,095,000$ 4,125,000$ 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 - CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 60 $25,000 deductibles per occurrence depending on claim type, with an annual maximum of $83,446,936. Police professional insurance coverage is provided by an insurance company. The City pays an annual premium for this coverage, and has a $10,000 deductible per occurrence, with a $500,000 annual maximum. Settlement claims have not exceeded insurance coverage for each of the past three years. There were not significant reductions in insurance coverage during 2009. 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, 2009. 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. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 61 Note 12 CONDUIT DEBT OBLIGATION As of December 31, 2009, the City of Edina had 4 series of Housing and Health Care Revenue Bonds, with an aggregate principal amount payable of $31,560,000. The bonds are payable solely from revenues of the respective organizations and do not constitute an indebtedness of the City, and are not a charge against its general credit or taxing power. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. Note 13 JOINT VENTURE The City is a participant with the City of Bloomington, the City of Eden Prairie and the Metropolitan Airport Commission in a joint venture to construct and operate a facility to be used for the training of law enforcement officers and firefighters. The South Metro Public Safety Training Facility Association (PSTF) is governed by a Board consisting of one representative from each Member. On dissolution of the Association, the Facility shall revert to the City of Edina, and all remaining assets shall be divided among the members based on the Cost Sharing Formula. In accordance with the joint venture agreement, each member of the association will share in the cost of the construction and operation based on the Cost Sharing Formula. The City’s net investment is reported in the governmental activities capital assets. The City’s equity interest in the PSTF was $1,452,465. Complete financial statements for PSTF can be obtained from the City of Edina, 4801 West 50th Street, Edina, MN 55424. 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, 2009, the City paid a total of $35,044 in membership fees to the PSTF. The City also pays an annual membership fee to the I-494 Corridor Commission as part of the joint venture agreement. The membership fee is paid by the commissions and projects department and is based on a Cost Sharing Formula. For the year ended December 31, 2009, the City paid a total of $10,831 in membership fees to the I-494 Corridor Commission. CITY OF EDINA, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2009 62 Note 15 DESIGNATIONS AND RESERVATIONS OF FUND BALANCE At December 31, 2009 the City had designated and reserved portions of its various fund balances through legal restriction and City Council authorization. A summary of such designations and reservations is as follows: December 31, 2009 General Fund: Reserved for prepaid items18,241$ Designated for park dedication178,295 Designated for investments25,817 Designated for compensated absences1,436,533 Designated for cash flow9,454,214 Debt Service Fund: Reserved for debt service5,454,132 Construction Fund: Reserved for encumbrances6,838,361 Reserved for special projects200,343 Reserved for construction projects2,730,517 Designated for equipment replacement3,244,468 Designated for capital improvements3,439,200 33,020,121$ Note 16 SPECIAL ITEMS During 2009 the City experienced a significant watermain break that overloaded the local sanitary sewer system capacity causing sewage backups in several homes. The City’s insurance carrier reviewed the event and determined that neither they nor the City would be liable for the property damage. However, the City Council decided that the City would voluntarily reimburse property owners for damage up to a limit, based on an independent assessment of the damage caused. The Utilities fund paid claims of $215,196 for this event in 2009. No material claims related to the voluntary payment program are believed to be outstanding at year-end. CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND For The Year Ended December 31, 2009 Variance with 2009Final Budget - ActualOver OriginalFinalAmounts(Under) Revenues: General property taxes: Current21,040,691$ 21,040,691$ 20,721,987$ (318,704)$ Penalties and interest12,000 12,000 20,180 8,180 Total general property taxes21,052,691 21,052,691 20,742,167 (310,524) Licenses and permits:2,797,715 2,797,715 2,081,139 (716,576) Intergovernmental: Federal:36,000 36,000 104,906 68,906 State: Municipal state aid195,000 195,000 195,000 - Other51,000 51,000 126,973 75,973 State aid - police 355,000 355,000 338,684 (16,316) Health programs120,000 120,000 119,086 (914) Total intergovernmental757,000 757,000 884,649 127,649 Charges for services: Building Department5,300 5,300 29,132 23,832 City Clerk5,300 5,300 8,862 3,562 Fire Department48,000 48,000 31,237 (16,763) Ambulance fees1,545,000 1,545,000 1,556,146 11,146 Police Department200,950 200,950 172,878 (28,072) Engineering155,000 155,000 210,071 55,071 Health Department7,700 7,700 6,580 (1,120) Planning Department26,750 26,750 16,536 (10,214) Housing Foundation Contract24,000 24,000 37,870 13,870 HRA Services 20,600 20,600 28,377 7,777 Park Registration 96,000 96,000 103,530 7,530 Senior Center 100,000 100,000 94,525 (5,475) Other fees 5,000 5,000 1,540 (3,460) 50th & France Assessment 69,000 69,000 69,000 - Charges to other funds 392,880 392,880 392,880 - Total charges for services 2,701,480 2,701,480 2,759,164 57,684 Fines and forfeits 900,000 900,000 1,148,440 248,440 Miscellaneous: Rental of property 315,000 315,000 342,446 27,446 Investment income 322,772 322,772 37,668 (285,104) Donations 10,200 10,200 28,367 18,167 Other 6,000 6,000 15,039 9,039 Total miscellaneous 653,972 653,972 423,520 (230,452) Total revenues 28,862,858 28,862,858 28,039,079 (823,779) Budgeted Amounts 63 CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED) For The Year Ended December 31, 2009 Variance with 2009Final Budget - ActualUnder OriginalFinalAmounts(Over) Expenditures: General government: Mayor and Council: Current: Personal services45,829$ 45,829$ 46,150$ (321)$ Contractual services12,355 12,355 8,105 4,250 Commodities1,200 1,200 1,214 (14) Central services31,932 31,932 27,582 4,350 Total mayor and council91,316 91,316 83,051 8,265 Administration: Current: Personal services870,456 870,456 837,215 33,241 Contractual services193,650 193,650 156,602 37,048 Commodities4,780 4,780 766 4,014 Central services76,236 76,236 64,196 12,040 Total current1,145,122 1,145,122 1,058,779 86,343 Capital outlay6,360 6,360 332 6,028 Total administration1,151,482 1,151,482 1,059,111 92,371 Planning: Current: Personal services364,502 364,502 372,582 (8,080) Contractual services48,055 48,055 24,472 23,583 Commodities1,960 1,960 - 1,960 Central services59,076 59,076 49,764 9,312 Total current473,593 473,593 446,818 26,775 Capital outlay2,010 2,010 1,862 148 Total planning 475,603 475,603 448,680 26,923 Finance: Current: Personal services 519,682 519,682 513,840 5,842 Contractual services 109,800 109,800 96,560 13,240 Commodities 3,400 3,400 2,236 1,164 Central services 58,452 58,452 49,252 9,200 Total current 691,334 691,334 661,888 29,446 Capital outlay 6,300 6,300 - 6,300 Total finance 697,634 697,634 661,888 35,746 Election: Current: Personal services 143,876 143,876 104,907 38,969 Contractual services 32,319 32,319 11,668 20,651 Commodities 19,393 19,393 6,783 12,610 Central services 15,168 15,168 12,466 2,702 Total current 210,756 210,756 135,824 74,932 Capital outlay - - 985 (985) Total election 210,756 210,756 136,809 73,947 Budgeted Amounts 64 CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED) For The Year Ended December 31, 2009 Variance with 2009Final Budget - ActualUnder OriginalFinalAmounts(Over) Budgeted Amounts Assessing: Current: Personal services660,133$ 660,133$ 651,457$ 8,676$ Contractual services116,100 116,100 87,395 28,705 Commodities3,000 3,000 637 2,363 Central services71,760 71,760 60,288 11,472 Total current850,993 850,993 799,777 51,216 Capital outlay12,695 12,695 13,474 (779) Total assessing863,688 863,688 813,251 50,437 Legal and court services: Current: Contractual services371,800 371,800 339,744 32,056 Commissions and projects: Current: Personal services130,000 130,000 213,379 (83,379) Contractual services506,232 506,232 266,441 239,791 Commodities- - 1,680 (1,680) Total commissions and projects636,232 636,232 481,500 154,732 Total general government4,498,511 4,498,511 4,024,034 474,477 Public safety: Police protection: Current: Personal services6,453,422 6,453,422 6,289,875 163,547 Contractual services399,650 399,650 359,935 39,715 Commodities67,182 67,182 57,476 9,706 Central services961,236 961,236 801,135 160,101 Total current7,881,490 7,881,490 7,508,421 373,069 Capital outlay265,533 265,533 75,456 190,077 Total police protection 8,147,023 8,147,023 7,583,877 563,146 Fire protection: Current: Personal services 3,694,178 3,694,178 3,530,757 163,421 Contractual services 321,500 321,500 319,454 2,046 Commodities 166,000 166,000 191,064 (25,064) Central services 332,484 332,484 270,727 61,757 Total current 4,514,162 4,514,162 4,312,002 202,160 Capital outlay 201,247 201,247 230,313 (29,066) Total fire protection 4,715,409 4,715,409 4,542,315 173,094 65 CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED) For The Year Ended December 31, 2009 Variance with 2009Final Budget - ActualUnder OriginalFinalAmounts(Over) Budgeted Amounts Civil defense: Current: Personal services38,800$ 38,800$ 38,800$ -$ Contractual services10,026 10,026 7,812 2,214 Commodities12,110 12,110 8,278 3,832 Total current60,936 60,936 54,890 6,046 Capital outlay5,683 5,683 13,425 (7,742) Total civil defense66,619 66,619 68,315 (1,696) Animal Control: Current: Personal services69,897 69,897 70,489 (592) Contractual services8,795 8,795 9,826 (1,031) Commodities4,299 4,299 2,050 2,249 Central services9,312 9,312 7,590 1,722 Total current92,303 92,303 89,955 2,348 Capital outlay7,534 7,534 - 7,534 Total animal control99,837 99,837 89,955 9,882 Public health: Current: Personal services272,872 272,872 258,358 14,514 Contractual services198,234 198,234 192,565 5,669 Commodities1,407 1,407 1,673 (266) Central services35,436 35,436 29,850 5,586 Total current507,949 507,949 482,446 25,503 Capital outlay 5,682 5,682 - 5,682 Total public health513,631 513,631 482,446 31,185 Inspections: Current: Personal services 910,454 910,454 847,385 63,069 Contractual services 70,021 70,021 62,910 7,111 Commodities 9,265 9,265 5,325 3,940 Central services 94,008 94,008 78,704 15,304 Total current 1,083,748 1,083,748 994,324 89,424 Capital outlay 22,452 22,452 1,379 21,073 Total inspections 1,106,200 1,106,200 995,703 110,497 Total public safety 14,648,719 14,648,719 13,762,611 886,108 66 CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED) For The Year Ended December 31, 2009 Variance with 2009Final Budget - ActualUnder OriginalFinalAmounts(Over) Budgeted Amounts Public works: Administration: Current: Personal services190,941$ 190,941$ 169,697$ 21,244$ Contractual services7,300 7,300 6,049 1,251 Commodities850 850 - 850 Central services23,856 23,856 20,151 3,705 Total administration222,947 222,947 195,897 27,050 Engineering: Current: Personal services813,584 813,584 825,592 (12,008) Contractual services102,100 102,100 94,937 7,163 Commodities18,370 18,370 11,159 7,211 Central services122,004 122,004 101,580 20,424 Total current1,056,058 1,056,058 1,033,268 22,790 Capital outlay51,084 51,084 25,373 25,711 Total engineering1,107,142 1,107,142 1,058,641 48,501 Street maintenance: Current: Personal services2,198,050 2,198,050 2,026,026 172,024 Contractual services755,090 755,090 699,374 55,716 Commodities1,031,735 1,031,735 896,542 135,193 Central services915,276 915,276 746,157 169,119 Total current4,900,151 4,900,151 4,368,099 532,052 Capital outlay294,454 294,454 28,776 265,678 Total street maintenance5,194,605 5,194,605 4,396,875 797,730 Total public works 6,524,694 6,524,694 5,651,413 873,281 67 CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED) For The Year Ended December 31, 2009 Variance with 2009Final Budget - ActualUnder OriginalFinalAmounts(Over) Budgeted Amounts Parks: Administration: Current: Personal services646,249$ 646,249$ 613,614$ 32,635$ Contractual services34,844 34,844 29,037 5,807 Commodities2,986 2,986 10,087 (7,101) Central services71,760 71,760 60,395 11,365 Total current755,839 755,839 713,133 42,706 Capital outlay7,088 7,088 324 6,764 Total administration762,927 762,927 713,457 49,470 Recreation: Current: Personal services198,875 198,875 175,560 23,315 Contractual services182,343 182,343 151,362 30,981 Commodities51,655 51,655 50,313 1,342 Total recreation432,873 432,873 377,235 55,638 Maintenance: Current: Personal services1,574,630 1,574,630 1,630,190 (55,560) Contractual services516,391 516,391 384,891 131,500 Commodities199,608 199,608 174,758 24,850 Central services353,088 353,088 289,448 63,640 Total current2,643,717 2,643,717 2,479,287 164,430 Capital outlay121,517 121,517 165,670 (44,153) Total maintenance2,765,234 2,765,234 2,644,957 120,277 Total parks3,961,034 3,961,034 3,735,649 225,385 Total expenditures 29,632,958 29,632,958 27,173,707 2,459,251 Revenues over (under) expenditures (770,100) (770,100) 865,372 1,635,472 Other financing sources (uses): Transfer from other funds 765,100 765,100 765,100 - Transfer to other funds (50,000) (750,000) (3,994,468) (3,244,468) Sale of capital assets 55,000 55,000 34,592 (20,408) Total financing sources (uses)770,100 70,100 (3,194,776) (3,264,876) Net increase (decrease) in fund balance -$ (700,000)$ (2,329,404) (1,629,404)$ Fund balance - January 1 14,379,003 Fund balance - December 31 12,049,599$ 68 CITY OF EDINA, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION OTHER POST-EMPLOYMENT BENEFITS PLAN SCHEDULE OF FUNDING PROGRESS For The Year Ended December 31, 2009 UnfundedUnfunded ActuarialActuarialActuarialActuarialLiability 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 This page left blank intentionally. 70 CITY OF EDINA, MINNESOTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2009 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, 2009 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 Public Safety: Civil defense66,619$ 68,315$ 1,696$ Excess expenditures in the civil defense department are funded by available general fund balance designated for our equipment replacement program. Excess expenditures of $119,096 in the CDBG fund are due to timing differences between the grant period and the City’s fiscal year. All CDBG expenditures are reimbursed by the County. A Special Revenue Fund is used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The following are nonmajor special revenue funds: Community Development Block Grant Fund - This fund was established to account for funds received under Title I of the Housing and Community Development Act of 1974. Communications Fund - This fund was established to account for funds received from the franchise fee of the local cable television service. Police Special Revenue Fund - This fund was established to account for funds received for specific purposes within the police department, including E-911 and forfeiture funds. NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds 73 CITY OF EDINA, MINNESOTA COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2009 Community Total Nonmajor Development PoliceSpecial Revenue Block GrantCommunicationSpecial RevenueFunds Assets Cash and cash equivalents 59$ 81,470$ 83,861$ 165,390$ Investments - 717,996 - 717,996 Accrued interest receivable - 4,534 - 4,534 Accounts receivable - 181,192 - 181,192 Due from other funds - - 450,000 450,000 Due from other governments 100,075 - - 100,075 Total assets 100,134$ 985,192$ 533,861$ 1,619,187$ Liabilities and Fund Balance Liabilities: Accounts payable -$ 14,412$ 274$ 14,686$ Salaries payable 134 11,228 144 11,506 Due to other funds 100,000 - - 100,000 Unearned revenue - 6,354 - 6,354 Total liabilities 100,134 31,994 418 132,546 Fund balance: Unreserved: Undesignated - 953,198 533,443 1,486,641 Total fund balance - 953,198 533,443 1,486,641 Total liabilities and fund balance 100,134$ 985,192$ 533,861$ 1,619,187$ 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, 2009 CommunityTotal Nonmajor DevelopmentPoliceSpecial Revenue Block GrantCommunicationSpecial RevenueFunds Revenues: Franchise fees-$ 667,791$ -$ 667,791$ Intergovernmental278,052 - 68,340 346,392 Fines and forfeitures- - 76,543 76,543 Investment income- 20,552 278 20,830 Other- 101,679 - 101,679 Total revenues278,052 790,022 145,161 1,213,235 Expenditures: Current: General government278,052 671,125 - 949,177 Public safety- - 190,282 190,282 Total expenditures278,052 671,125 190,282 1,139,459 Net increase (decrease) in fund balance- 118,897 (45,121) 73,776 Fund balance - January 1- 834,301 578,564 1,412,865 Fund balance - December 31-$ 953,198$ 533,443$ 1,486,641$ 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, 2009 Variance with Final budget - ActualOver OriginalFinalAmounts(Under) Revenues: Intergovernmental 158,956$ 158,956$ 278,052$ 119,096$ Expenditures: Current: General government 158,956 158,956 278,052 119,096 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, 2009 Total Nonmajor ArtEdinborough ParkProprietary Arena Center Centennial Lakes Funds Assets Current assets: Cash and cash equivalents485$ 14,835$ 1,745$ 17,065$ Investments - unrestricted114,013 - 3,121,305 3,235,318 Investments - restricted2,305,432 - - 2,305,432 Interest receivable74 - 19,711 19,785 Accounts receivable128,990 - 1,440 130,430 Due from other funds- 116,000 - 116,000 Inventory- 12,743 - 12,743 Total current assets2,548,994 143,578 3,144,201 5,836,773 Noncurrent assets: Deferred charges28,158 - - 28,158 Net capital assets2,352,277 230,986 1,613,473 4,196,736 Total noncurrent assets2,380,435 230,986 1,613,473 4,224,894 Total assets4,929,429 374,564 4,757,674 10,061,667 Liabilities: Current liabilities: Accounts payable35,076 19,041 76,550 130,667 Salaries payable32,201 8,164 41,392 81,757 Due to other funds116,000 - - 116,000 Due to other governments1,771 743 5,211 7,725 Unearned revenue- 7,267 48,692 55,959 Compensated absences payable57,375 18,881 60,576 136,832 Total current liabilities242,423 54,096 232,421 528,940 Noncurrent liabilities: OPEB payable7,150 1,973 11,705 20,828 Compensated absences86,062 28,322 90,864 205,248 Bonds payable, net of unamortized discounts 2,453,662 - - 2,453,662 Total noncurrent liabilities2,546,874 30,295 102,569 2,679,738 Total liabilities2,789,297 84,391 334,990 3,208,678 Net assets: Invested in capital assets, net of related debt2,204,047 230,986 1,613,473 4,048,506 Unrestricted (63,915) 59,187 2,809,211 2,804,483 Total net assets2,140,132$ 290,173$ 4,422,684$ 6,852,989$ 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, 2009 Total Nonmajor Edinborough ParkProprietary Arena Art Center Centennial Lakes Funds Operating revenues: Sales - retail2,026$ 41,883$ -$ 43,909$ Sales - concessions5,692 444 59,413 65,549 Memberships3,716 25,496 57,078 86,290 Admissions111,481 - 563,966 675,447 Building rental1,157,522 - 240,489 1,398,011 Rental of equipment2,997 - 103,761 106,758 Greens fees- - 215,710 215,710 Class registration & other fees130,976 400,394 483,640 1,015,010 Total operating revenues1,414,410 468,217 1,724,057 3,606,684 Operating expenses: Cost of sales and services880 21,094 51,904 73,878 Personal services654,132 244,329 1,196,568 2,095,029 Contractual services608,683 293,356 530,599 1,432,638 Commodities73,241 59,568 281,532 414,341 Central Services41,905 34,847 79,145 155,897 Depreciation286,241 30,124 148,125 464,490 Total operating expenses1,665,082 683,318 2,287,873 4,636,273 Operating loss(250,672) (215,101) (563,816) (1,029,589) Nonoperating revenues (expenses): Excess tax increments100,124 100,124 - 200,248 Investment income (loss)(5,924) - 74,728 68,804 Donations- 19,302 - 19,302 Interest and fiscal charges(42) - - (42) Amortization of bond discount(60) - - (60) Gain (loss) on sale of capital asset- - 2,250 2,250 Total nonoperating revenues (expenses)94,098 119,426 76,978 290,502 Income (loss) before transfers(156,574) (95,675) (486,838) (739,087) Transfers: Transfers in 102,075 145,000 250,000 497,075 Total transfers 102,075 145,000 250,000 497,075 Change in net assets(54,499) 49,325 (236,838) (242,012) Net assets - January 1 2,194,631 240,848 4,659,522 7,095,001 Net assets - December 312,140,132$ 290,173$ 4,422,684$ 6,852,989$ 79 CITY OF EDINA, MINNESOTA COMBINING STATEMENT OF CASH FLOWS NONMAJOR PROPRIETARY FUNDS For The Year Ended December 31, 2009 Total Nonmajor ArtEdinborough ParkProprietary Arena Center Centennial Lakes Funds Cash flows from operating activities: Receipts from customers and users1,408,372$ 468,262$ 1,729,362$ 3,605,996$ Payment to suppliers(715,951) (411,244) (1,133,012) (2,260,207) Payment to employees(630,015) (237,119) (1,178,918) (2,046,052) Donations- 19,302 - 19,302 Net cash provided by (used in) operating activities62,406 (160,799) (582,568) (680,961) Cash flows from noncapital financing activities: Excess tax increments100,124 100,124 - 200,248 Transfer from other funds102,075 145,000 250,000 497,075 Proceeds from interfund borrowing101,000 - - 101,000 Payment of interfund borrowing- (101,000) - (101,000) Net cash provided by noncapital financing activities303,199 144,124 250,000 697,323 Cash flows from capital and related financing activities: Proceeds of capital debt2,425,443 - - 2,425,443 Acquisition of capital assets(136,088) - (582,631) (718,719) Proceeds from sale of capital assets- - 2,250 2,250 Principal paid on bonds(225,000) - - (225,000) Interest paid on bonds(4,162) - - (4,162) Net cash used in capital and related financing activities2,060,193 - (580,381) 1,479,812 Cash flows from investing activities: Proceeds from sales of investments- - 715,922 715,922 Purchase of investments(2,425,591) - - (2,425,591) Investment income148 - 184,078 184,226 Net cash flows provided by (used in).investing activities (2,425,443) - 900,000 (1,525,443) Net increase (decrease) in cash and cash equivalents355 (16,675) (12,949) (29,269) Cash and cash equivalents - January 1130 31,510 14,694 46,334 Cash and cash equivalents - December 31485$ 14,835$ 1,745$ 17,065$ Reconciliation of operating loss to net cash provided (used) by operating activities: Operating loss (250,672)$ (215,101)$ (563,816)$ (1,029,589)$ Adjustments to reconcile operating loss to net cash flows from operating activities: Depreciation286,241 30,124 148,125 464,490 Donations- 19,302 - 19,302 Changes in assets and liabilities: Decrease (increase) in receivables(6,038) - 5,969 (69) Decrease (increase) in inventory- (1,307) - (1,307) Increase (decrease) in accounts payable7,711 (1,062) (189,046) (182,397) Increase (decrease) in salaries payable10,171 933 (3,177) 7,927 Increase (decrease) in due to other governments1,047 (10) (786) 251 Increase (decrease) in unearned revenue- 45 (664) (619) Increase (decrease) in OPEB payable3,383 933 5,538 9,854 Increase (decrease) in compensated absences10,563 5,344 15,289 31,196 Total adjustments313,078 54,302 (18,752) 348,628 Net cash provided by (used in) operating activities62,406$ (160,799)$ (582,568)$ (680,961)$ Noncash investing activities: Increase (decrease) in fair value of investments(6,146)$ -$ (99,099)$ (105,245)$ 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. I-494 Corridor Commission - This fund accounts for assets and liabilities of the I-494 Corridor Commission, which is a joint venture that the City has fiduciary responsibilities for. FIDUCIARY FUNDS Agency Funds 81 This page left blank intentionally. 82 CITY OF EDINA, MINNESOTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS For The Year Ended December 31, 2009 BalanceBalance January 1AdditionsDeductionsDecember 31 POLICE SEIZURE Assets: Cash 21,505$ 1,184$ -$ 22,689$ Liabilities: Due to other governmental units 21,505$ 1,184$ -$ 22,689$ PUBLIC SAFETY TRAINING FACILITY Assets: Cash13,104$ -$ 8,602$ 4,502$ Investments 245,000 - - 245,000 Total Assets 258,104$ -$ 8,602$ 249,502$ Liabilities: Accounts payable15,605$ -$ 11,448$ 4,157$ Salaries payable4,187 529 - 4,716 Due to other governmental units 238,312 2,317 - 240,629 Total Liabilities 258,104$ 2,846$ 11,448$ 249,502$ PAYROLL Assets: Cash 14,016$ 16,233$ -$ 30,249$ Liabilities: Accounts payable 14,016$ 16,233$ -$ 30,249$ I-494 CORRIDOR COMMISSION Assets: Cash -$ 119,608$ -$ 119,608$ Liabilities: Due to other governmental units -$ 119,608$ -$ 119,608$ TOTALS - ALL AGENCY FUNDS Assets: Cash48,625$ 137,025$ 8,602$ 177,048$ Investments 245,000 - - 245,000 Total Assets 293,625$ 137,025$ 8,602$ 422,048$ Liabilities: Accounts payable29,621$ 16,233$ 11,448$ 34,406$ Salaries payable4,187 529 - 4,716 Due to other governmental units 259,817 123,109 - 382,926 Total Liabilities 293,625$ 139,871$ 11,448$ 422,048$ 83 This page left blank intentionally. 84 CITY OF EDINA, MINNESOTA TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES (shown by year of tax collectibility) 2006 2007 2008 2009 2010 Total tax capacity 101,947,912$ 113,428,895$ 120,084,430$ 122,532,149$ 122,737,754$ Increment valuation (7,980,069) (8,771,951) (9,771,137) (10,307,195) (5,482,305) Contribution to fiscal disparities pool (7,107,862) (8,486,997) (9,358,999) (10,393,526) (10,942,782) Tax capacity used for rate calculation 86,859,981 96,169,947 100,954,294 101,831,428 106,312,667 Fiscal disparities distribution2,411,937 2,595,376 2,895,523 3,298,549 3,537,906 Adjusted net tax capacity89,271,918$ 98,765,323$ 103,849,817$ 105,129,977$ 109,850,573$ Tax levies: General fund18,560,151$ 19,427,890$ 20,314,404$ 21,202,691$ 20,737,472$ Equipment- - - - 940,494 Debt service 1,660,841 1,497,500 1,695,827 2,351,030 3,212,757 Total certified tax levies20,220,992 20,925,390 22,010,231 23,553,721 24,890,723 Referendum market value levy599,138 605,138 595,438 600,212 602,250 Total levy20,820,130$ 21,530,528$ 22,605,669$ 24,153,933$ 25,492,973$ Tax capacity rate: General fund revenue20.755 19.636 19.563 20.204 20.004 Bonds & interest 1.858 1.514 1.634 2.243 2.968 Total tax capacity rate22.613 21.150 21.197 22.447 22.972 Market value rate0.00703 0.00641 0.00601 0.00597 0.00606 85 CITY OF EDINA, MINNESOTA COMBINED SCHEDULE OF BONDED INDEBTEDNESS December 31, 2009 Final InterestMaturityOriginal RatesDateDateIssue Redeemed Tax Increment Bonds: Tax Increment Bonds, Series 2000A4.30 - 4.8009/06/0002/01/112,620,000$ 1,700,000$ Tax Increment Bonds, Series 2002B3.00%08/05/0202/01/121,400,000 - Tax Increment Refunding Bonds, Series 2005B3.00%07/19/0502/01/0910,520,000 7,285,000 Tax Increment Taxable Refunding Bonds, Series 2005C3.75 - 4.2507/19/0502/01/096,220,000 4,335,000 Tax Increment Refunding Bonds, Series 2005D3.00 - 3.4007/19/0502/01/133,505,000 930,000 Total Tax Increment Bonds24,265,000 14,250,000 General Obligation Bonds: GO Park & Recreation Refunding Bonds, Series 2005A3.50 - 4.0007/19/0502/01/175,375,000 820,000 GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/285,865,000 - GO Capital Improvement Plan, Series 2009A3.00 - 4.4004/29/0902/01/30- - GO Equipment Certificates, Series 2009B2.00 - 3.0004/29/0901/01/12- - Total General Obligation Bonds11,240,000 820,000 Permanent Improvement Revolving (PIR) Bonds: GO Permanent Improvement Revolving, Series 2005E3.00 - 3.7509/13/0502/01/161,460,000 315,000 GO Permanent Improvement Revolving Series 2007C3.60 - 4.2505/24/0702/01/195,870,000 - GO Permanent Improvement Revolving Series 2008B3.00 - 4.0008/28/0802/01/207,755,000 - Total PIR Bonds15,085,000 315,000 Public Project Revenue Bonds: Public Project Revenue, Series 20024.00 - 5.2501/01/0202/01/2112,410,000 2,785,000 Public Project Revenue, Series 20053.00 - 4.1309/13/0505/01/265,425,000 375,000 Taxable Public Project Revenue, Series 2009A2.10 - 4.5511/24/0902/01/30- - Taxable Public Project Revenue, Series 2009B1.95 - 5.8011/24/0902/01/30 - - Total Public Project Revenue Bonds17,835,000 3,160,000 Revenue Bonds: Recreational Facility Bonds, Series 1999B3.70 - 4.4505/03/9901/01/133,270,000 1,595,000 Recreational Facility Bonds, Series 2001A2.25 - 4.6511/01/0101/01/174,620,000 3,450,000 Recreational Facility Bonds, Series 2009B2.00 - 3.0004/29/0901/01/17- - Recreational Facility Bonds, Series 2009C2.00 - 4.0012/10/0902/01/30- - Utility Revenue Bonds, Series 1999A3.20 - 4.2005/03/9902/01/093,600,000 3,180,000 Utility Revenue Bonds, Series 2003C1.10 - 3.5503/01/0302/01/133,200,000 1,475,000 Utility Revenue Bonds, Series 2007B4.00%05/24/0702/01/178,210,000 770,000 Utility Revenue Bonds, Series 2008A3.00 - 4.0008/28/0802/01/1913,985,000 - Total Public Project Revenue Bonds36,885,000 10,470,000 Total - Bonded indebtedness105,310,000$ 29,015,000$ Prior Years 86 PrincipalInterestInterest OutstandingPayableDueDuePayable 12/31/08 Issued Payments 12/31/09 In 2010 In 2010 to Maturity 920,000$ -$ 290,000$ 630,000$ 305,000$ 22,768$ 30,568$ 1,400,000 - - 1,400,000 - 42,000 105,000 3,235,000 - 3,235,000 - - - - 1,885,000 - 1,885,000 - - - - 2,575,000 - 480,000 2,095,000 500,000 61,052 142,406 10,015,000 - 5,890,000 4,125,000 805,000 125,820 277,974 4,555,000 - 435,000 4,120,000 455,000 147,250 669,107 5,865,000 - 195,000 5,670,000 205,000 227,044 2,494,547 - 14,000,000 - 14,000,000 - 638,040 6,717,417 - 230,000 - 230,000 75,000 4,642 7,793 10,420,000 14,230,000 630,000 24,020,000 735,000 1,016,976 9,888,864 1,145,000 - 150,000 995,000 150,000 32,331 121,741 5,870,000 - - 5,870,000 505,000 214,153 1,175,671 7,755,000 - - 7,755,000 - 273,794 1,816,504 14,770,000 - 150,000 14,620,000 655,000 520,278 3,113,916 9,625,000 - 550,000 9,075,000 575,000 442,499 3,059,575 5,050,000 - 195,000 4,855,000 205,000 190,381 1,869,572 - 2,595,000 - 2,595,000 - - 1,354,368 - 6,125,000 - 6,125,000 - - 3,922,734 14,675,000 8,720,000 745,000 22,650,000 780,000 632,880 10,206,249 1,675,000 - 1,675,000 - - - - 1,170,000 - 1,170,000 - - - - - 2,010,000 - 2,010,000 415,000 46,256 132,306 - 2,440,000 - 2,440,000 - 54,670 1,085,670 420,000 - 420,000 - - - - 1,725,000 - 320,000 1,405,000 330,000 41,972 99,133 7,440,000 - 700,000 6,740,000 730,000 255,000 1,134,200 13,985,000 - 605,000 13,380,000 1,125,000 471,188 2,760,207 26,415,000 4,450,000 4,890,000 25,975,000 2,600,000 869,086 5,211,516 76,295,000$ 27,400,000$ 12,305,000$ 91,390,000$ 5,575,000$ 3,165,040$ 28,698,519$ 2009 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, 2009 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 25,790,600 694,209 5,263,680 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 2,747,974 - (747,974) Other - 73,881 73,881 - - Total sources of funds:3,000,000 41,467,707 35,637,199 694,209 5,136,299 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 20,841 - 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 15,575,000 740,211 684,789 Total uses of funds:3,000,000 37,562,457 35,591,197 740,211 1,231,049 Funds remaining (deficit)-$ 3,905,250$ 46,002$ (46,002)$ 3,905,250$ 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, 2009 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 60,306,927 1,595,175 13,097,898 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 86,025,302 1,595,175 16,909,840 Uses of funds: Land acquisition 6,682,998 12,200,000 6,894,303 - 5,305,697 Installation of public utilities and improvements - 16,000,000 14,278,823 - 1,721,177 Site improvements or preparation costs 2,885,484 2,000,000 468,098 - 1,531,902 Bond payments: Principal - 21,470,000 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 99,613 - 10,387 Transfers out - 22,000,000 19,581,699 1,638,837 779,464 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 85,981,640 1,638,837 10,677,375 Funds remaining (deficit)(3,000,000)$ 6,232,465$ 43,662$ (43,662)$ 6,232,465$ 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, 2009 Accounted OriginalAmendedfor inCurrentAmount BudgetBudgetprior yearsyearremaining Source of funds: Bond proceeds4,500,000$ 9,900,000$ 9,475,915$ -$ 424,085$ Tax increments received- 29,737,107 15,109,770 1,325,812 13,301,525 Real estate sales *- 4,700,000 5,402,344 - (702,344) Interest on invested funds- 300,000 1,014,888 41,376 (756,264) Other- - 61,068 - (61,068) Total sources of funds:4,500,000 44,637,107 31,063,985 1,367,188 12,205,934 Uses of funds: Land acquisition- 6,500,000 4,265,416 332,715 1,901,869 Installation of public utilities and improvements4,310,000 17,127,000 9,738,935 - 7,388,065 Bond payments: Principal- 9,900,000 7,317,555 290,000 2,292,445 Interest- 9,190,000 3,130,660 78,677 5,980,663 Loan/note interest- - 4,000,994 593,264 (4,594,258) Paid to other governments- - 198,978 2,068 (201,046) Administrative costs190,000 1,920,107 1,353,171 8,992 557,944 Total uses of funds:4,500,000 44,637,107 30,005,709 1,305,716 13,325,682 Funds remaining (deficit)-$ -$ 1,058,276$ 61,472$ (1,119,748)$ Cost to authorityPrice paid by developer * Real estate sales 5229 Eden Ave.1,822,319$ 5220 Eden Circle995,000 5244 Eden Circle (condemnation deposit)309,937 5201 Eden Circle1,447,043 2,070,119 Project area23,832 4,005,694 4,598,131$ 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, 2009 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 38,198,706 3,972,190 47,829,104 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 3,847,904 172,250 (1,520,154) Transfer in - 40,000,000 36,267,924 2,379,047 1,353,029 Sale of material - 255,710 255,710 - - Developer payments - 297,826 297,826 - - Other - 20,000 21,799 - (1,799) Total sources of funds:126,400,000 180,431,702 124,288,616 6,523,487 49,619,599 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 18,758,446 2,213,608 4,899,176 Bond payments: Principal 41,400,000 41,400,000 28,199,724 5,600,000 7,600,276 Interest 38,000,000 38,000,000 33,989,191 165,559 3,845,250 Administrative costs 1,140,800 1,600,000 1,352,912 24,241 222,847 Paid to other governments - 42,000 36,758 4,345 897 Loan/note interest - 14,684,711 5,016,715 666,592 9,001,404 Parkland dedication fees - 2,030,345 2,030,345 - - Total uses of funds:121,117,800 146,609,711 112,365,516 8,674,345 25,569,850 Funds remaining (deficit)5,282,200$ 33,821,991$ 11,923,100$ (2,150,858)$ 24,049,749$ 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, 2009 Accounted OriginalAmendedfor inCurrentAmount BudgetBudgetprior yearsyearremaining Source of funds: Bond proceeds1,911,000$ 1,911,000$ -$ -$ 1,911,000$ Tax increments received2,177,855 2,177,855 746,863 - 1,430,992 Interest on invested funds- - 242,483 16,940 (259,423) Total sources of funds:4,088,855 4,088,855 989,346 16,940 3,082,569 Uses of funds: Land acquisition529,400 529,400 39,968 2,025 487,407 Installation of public utilities and improvements325,000 325,000 540,279 - (215,279) Demolition150,000 150,000 - - 150,000 Relocation160,000 160,000 - - 160,000 Capitalized interest150,000 150,000 - - 150,000 Debt service2,178,455 2,178,455 - - 2,178,455 Paid to other governments- - 2,730 - (2,730) Administrative costs596,000 596,000 74,830 - 521,170 Total uses of funds:4,088,855 4,088,855 657,807 2,025 3,429,023 Funds remaining (deficit)-$ -$ 331,539$ 14,915$ (346,454)$ 92 Contents Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information Operating Information STATISTICAL SECTION ThispartoftheCity'scomprehensiveannualfinancialreportpresents detailedinformationasacontextforunderstandingwhattheinformationin thefinancialstatements,notedisclosures,andrequiredsupplementary information says about the City's overall financial health. Page 94 Sources:Unlessotherwisenoted,theinformationintheseschedulesisderivedfromthe comprehensiveannualfinancialreportsfortherelevantyear.TheCityimplementedGASB Statement34in2003;schedulespresentinggovernment-wideinformationinclude information beginning in that year. Theseschedulescontaintrendinformationtohelpthe readerunderstandhowtheCity'sfinancialperformance and well-being have changed over time. Theseschedulescontaininformationtohelpthereader assesstheCity'smostsignificantlocalrevenuesource, the property tax. Theseschedulescontaininformationtohelpthereader assesstheaffordabilityoftheCity'scurrentlevelsof outstandingdebtandtheCity'sabilitytoissueadditional debt in the future. Theseschedulesofferdemographicandeconomic indicatorstohelpthereaderunderstandthe environmentwithinwhichtheCity'sfinancialactivities take place. Theseschedulescontainserviceandinfrastructuredata tohelpthereaderunderstandhowtheinformationinthe City'sfinancialreportrelatestotheservicestheCity provides and the activities it performs. 102 106 111 113 93 CITY OF EDINA, MINNESOTA NET ASSETS BY COMPONENT LAST SEVEN FISCAL YEARS (accrual basis of accounting) 2003 2004 2005 Governmental activities Invested in capital assets, net of related debt21,792,377$ 34,320,784$ 36,092,020$ Restricted4,676,748 2,145,488 78,943 Unrestricted31,876,783 28,762,040 35,796,801 Total governmental activities net assets 58,345,908$ 65,228,312$ 71,967,764$ Business-type activities Invested in capital assets, net of related debt29,952,549$ 37,240,476$ 40,044,169$ Restricted1,672,828 - - Unrestricted15,344,474 11,934,496 11,121,720 Total business-type activities net assets 46,969,851$ 49,174,972$ 51,165,889$ Primary government Invested in capital assets, net of related debt51,744,926$ 71,561,260$ 76,136,189$ Restricted6,349,576 2,145,488 78,943 Unrestricted47,221,257 40,696,536 46,918,521 Total primary government net assets 105,315,759$ 114,403,284$ 123,133,653$ Fiscal Year 94 2006 2007 2008 2009 69,814,012$ 67,680,882$ 71,601,227$ 69,622,370$ - - 3,362,446 7,132,865 15,280,058 25,136,312 29,577,462 30,705,600 85,094,070$ 92,817,194$ 104,541,135$ 107,460,835$ 46,981,755$ 43,046,160$ 46,851,736$ 47,333,794$ - - 954,486 624,837 6,379,515 13,649,355 12,071,776 15,158,720 53,361,270$ 56,695,515$ 59,877,998$ 63,117,351$ 116,795,767$ 110,727,042$ 118,452,963$ 116,956,164$ - - 4,316,932 7,757,702 21,659,573 38,785,667 41,649,238 45,864,320 138,455,340$ 149,512,709$ 164,419,133$ 170,578,186$ Fiscal Year 95 CITY OF EDINA, MINNESOTA CHANGES IN NET ASSETS LAST SEVEN FISCAL YEARS (accrual basis of accounting) 2003 2004 2005 Expenses Governmental activities: General government5,839,893$ 6,934,045$ 4,967,008$ Public safety10,784,215 11,063,767 12,019,027 Public works5,621,291 5,834,490 7,185,784 Parks4,484,685 4,248,060 5,901,648 Interest on long-term debt2,760,022 2,399,682 2,288,524 Total governmental activities expenses29,490,106 30,480,044 32,361,991 Business-type activities: Utilities7,930,502 7,801,580 8,254,409 Liquor8,764,081 9,110,888 9,749,313 Aquatic center711,061 701,768 725,936 Golf course3,555,243 3,508,741 3,580,307 Community activity centers3,833,026 3,850,192 3,825,562 Total business-type activities expenses24,793,913 24,973,169 26,135,527 Total primary government expenses54,284,019$ 55,453,213$ 58,497,518$ Program Revenues Governmental activities: Charges for services: General government930,391$ 454,603$ 619,526$ Public safety4,213,081 4,634,744 5,614,406 Other activities898,141 748,398 630,157 Operating grants and contributions1,215,745 1,154,808 1,512,366 Capital grants and contributions7,214,393 4,192,947 2,252,491 Total governmental activities program revenues14,471,751 11,185,500 10,628,946 Business-type activities: Charges for services: Utilities9,694,981 9,875,078 10,240,381 Liquor9,659,631 10,030,067 10,752,724 Aquatic center861,340 764,134 849,380 Golf course3,684,079 3,538,122 3,482,999 Community activity centers2,966,731 3,254,012 3,251,860 Operating grants and contributions132,031 138,447 131,408 Total business-type activities program revenues26,998,793 27,599,860 28,708,752 Total primary government program revenues41,470,544$ 38,785,360$ 39,337,698$ Net (Expense)/Revenue Governmental activities(15,018,355)$ (19,294,544)$ (21,733,045)$ Business-type activities2,204,880 2,626,691 2,573,225 Total primary government net expense(12,813,475)$ (16,667,853)$ (19,159,820)$ General Revenues and Other Changes in Net Assets Governmental activities: Property taxes17,815,426$ 17,865,757$ 19,071,202$ Tax increment collections7,342,270 6,761,934 7,060,744 Franchise taxes- 450,956 457,421 Unrestricted investment earnings286,209 443,074 977,956 Gain on disposal of capital assets26,669 - 63,674 Transfers(4,053,805) 655,227 841,500 Total governmental activities21,416,769 26,176,948 28,472,497 Business-type activities: Property taxes-$ -$ -$ Unrestricted investment earnings387,117 227,167 236,654 Gain (loss) on disposal of capital assets(177,051) 6,490 22,538 Transfers4,053,805 (655,227) (841,500) Total business-type activities4,263,871 (421,570) (582,308) Total primary government25,680,640$ 25,755,378$ 27,890,189$ Change in Net Assets Governmental activities6,398,414$ 6,882,404$ 6,739,452$ Business-type activities6,468,751 2,205,121 1,990,917 Total primary government12,867,165$ 9,087,525$ 8,730,369$ Fiscal Year 96 2006 2007 2008 2009 5,414,961$ 7,039,298$ 6,836,248$ 7,362,560$ 13,300,351 13,743,194 14,833,647 14,751,479 8,973,031 8,757,022 9,046,873 8,993,290 5,341,682 5,025,560 5,971,565 7,732,777 2,973,749 1,887,633 1,923,821 2,129,490 36,003,774 36,452,707 38,612,154 40,969,596 9,234,651 10,036,844 10,625,811 11,833,994 9,968,963 10,361,998 11,049,223 11,449,194 795,614 780,981 787,663 798,369 3,652,169 3,621,977 3,612,482 3,588,831 4,048,649 4,168,534 4,502,849 4,636,375 27,700,046 28,970,334 30,578,028 32,306,763 63,703,820$ 65,423,041$ 69,190,182$ 73,276,359$ 731,613$ 784,659$ 840,070$ 811,087$ 6,146,114 5,632,642 5,839,683 5,081,563 793,796 736,329 763,130 804,500 1,423,302 1,384,024 1,170,183 1,377,785 4,013,617 4,299,509 7,710,015 2,582,999 13,108,442 12,837,163 16,323,081 10,657,934 11,421,474 13,125,773 13,713,249 14,858,488 11,029,445 11,436,175 12,122,599 12,655,777 867,626 868,833 925,388 859,816 3,646,620 3,630,538 3,680,584 3,660,466 3,337,153 3,517,111 3,517,218 3,606,684 122,358 127,492 147,456 135,917 30,424,676 32,705,922 34,106,494 35,777,148 43,533,118$ 45,543,085$ 50,429,575$ 46,435,082$ (22,895,332)$ (23,615,544)$ (22,289,073)$ (30,311,662)$ 2,724,630 3,735,588 3,528,466 3,470,385 (20,170,702)$ (19,879,956)$ (18,760,607)$ (26,841,277)$ 20,414,298$ 21,459,001$ 22,242,276$ 23,834,274$ 7,228,002 7,793,577 8,578,434 7,587,386 499,206 570,871 647,466 667,791 1,230,264 1,581,702 1,185,899 387,177 8,418 58,377 1,265 11,709 838,230 919,625 967,800 743,025 30,218,418 32,383,153 33,623,140 33,231,362 -$ -$ -$ 300,372$ 283,771 510,678 607,312 209,371 25,210 7,604 14,505 2,250 (838,230) (919,625) (967,800) (743,025) (529,249) (401,343) (345,983) (231,032) 29,689,169$ 31,981,810$ 33,277,157$ 33,000,330$ 7,323,086$ 8,767,609$ 11,334,067$ 2,919,700$ 2,195,381 3,334,245 3,182,483 3,239,353 9,518,467$ 12,101,854$ 14,516,550$ 6,159,053$ Fiscal Year 97 CITY OF EDINA, MINNESOTA FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2000 2001 2002 2003a General fund Reserved141,939$ 15,872$ 417,093$ 412,991$ Unreserved13,755,160 14,359,821 14,325,972 9,961,074 Total general fund13,897,099$ 14,375,693$ 14,743,065$ 10,374,065$ All other governmental funds Reserved16,729,995$ 2,319,839$ 4,186,436$ 4,084,987$ Unreserved, reported in: Special revenue funds1,147,917 1,435,949 1,589,518 686,777 Capital projects funds22,454,859 22,869,578 26,750,351 19,608,849 Total all other governmental funds40,332,771$ 26,625,366$ 32,526,305$ 24,380,613$ a 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. b 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.c The substantial decrease in general fund unreserved fund balance in 2009 is due to the transfer of the equipment replacement program to the construction fund. The substantial increase in other governmental funds reserved fund balance in 2009 is due to unspent bond proceeds related to the new Public Works Facility, which is under construction. Fiscal Year 98 2004 2005b 2006 2007 2008 2009c 390,771$ 223,351$ 36,849$ 28,637$ 13,982$ 18,241$ 10,226,055 11,595,433 13,797,189 14,078,220 14,365,021 12,031,358 10,616,826$ 11,818,784$ 13,834,038$ 14,106,857$ 14,379,003$ 12,049,599$ 3,465,440$ 13,792,312$ 2,682,238$ 6,247,539$ 8,467,918$ 15,223,353$ 781,458 731,027 13,179,904 14,750,448 14,950,538 12,813,439 16,651,788 17,032,750 3,160,085 5,853,322 4,270,440 6,683,668 20,898,686$ 31,556,089$ 19,022,227$ 26,851,309$ 27,688,896$ 34,720,460$ Fiscal Year 99 CITY OF EDINA, MINNESOTA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (modified accrual basis of accounting) 2000 2001 2002 2003 Revenues General property taxes22,904,512$ 24,409,785$ 24,735,336$ 17,903,618$ Tax increment collections- - - 7,342,270 Special assessments1,159,876 1,086,093 998,908 1,019,461 Franchise fees336,678 473,702 418,153 393,627 License and permits1,835,828 2,239,611 1,939,207 2,182,263 Intergovernmental1,880,680 5,085,981 2,254,968 4,678,735 Charges for services2,902,666 1,962,172 2,096,806 2,076,519 Fines and forfeitures967,421 976,952 910,407 785,227 Investment income2,376,137 1,357,701 1,178,211 286,209 Rental of property1,156,526 4,262,984 1,782,063 354,266 Other revenues96,932 184,466 180,081 200,551 Total revenues35,617,256 42,039,447 36,494,140 37,222,746 Expenditures General government4,558,424 5,353,002 5,372,431 5,709,741 Public safety8,846,360 9,409,291 9,893,428 10,352,816 Public works3,672,057 4,313,065 4,161,373 4,142,668 Parks2,150,588 2,375,565 2,602,266 2,974,164 Capital outlay8,352,494 11,193,155 11,059,757 15,539,676 Debt service Principal6,050,000 3,740,000 5,885,000 5,700,000 Interest and other charges3,108,601 3,148,719 3,094,480 2,908,787 Total expenditures36,738,524 39,532,797 42,068,735 47,327,852 Revenues over (under) expenditures(1,121,268) 2,506,650 (5,574,595) (10,105,106) Other Financing Sources (Uses) Transfers in6,976,639 6,215,411 12,308,480 8,752,126 Transfers out(6,165,639) (6,201,152) (11,552,990) (12,805,931) Parkland dedication85,520 60,280 - - Sale of capital assets- - - - Bonds issued21,742,116 - 13,637,416 1,540,000 Premium on bonds issued- - - 59,219 Discount on bonds issued- - - - Refunding bonds issued- - - 6,570,000 Payment to refunding escrow- (15,810,000) (2,550,000) (6,525,000) Principal paid by escrow- - - - Total other financing sources (uses)22,638,636 (15,735,461) 11,842,906 (2,409,586) Net change in fund balances21,517,368$ (13,228,811)$ 6,268,311$ (12,514,692)$ Debt service as a percentage of noncapital expenditures32.3%24.3%29.0%27.1% 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 100 2004 2005 2006 2007a 2008 2009 17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$ 22,242,276$ 23,834,274$ 6,761,934 7,060,744 7,228,002 7,793,577 8,578,434 7,587,386 966,879 1,354,264 1,751,219 1,750,444 2,442,490 2,703,833 450,956 457,421 499,206 570,871 647,466 667,791 2,247,759 3,240,622 3,488,897 2,909,521 2,915,455 2,104,967 3,933,540 1,539,169 2,773,350 3,699,006 3,005,883 1,507,170 2,279,302 2,466,663 2,691,354 2,748,709 3,093,941 2,905,410 863,073 742,917 1,023,935 971,486 1,073,174 1,224,983 443,074 977,956 1,230,264 1,581,702 1,185,899 387,177 385,707 315,542 310,145 355,734 255,607 343,616 294,136 227,446 246,797 225,839 126,723 160,035 36,492,117 37,453,946 41,657,467 44,065,890 45,567,348 43,426,642 5,213,469 5,477,308 5,995,804 6,544,307 6,235,352 6,895,329 11,125,388 11,373,763 12,431,114 12,985,215 13,788,797 13,692,686 4,386,669 4,882,811 5,233,907 5,787,619 6,189,594 5,911,758 2,954,372 3,146,029 3,300,375 3,455,789 3,693,595 3,688,063 7,772,321 8,227,191 8,980,526 11,991,122 14,666,907 22,997,065 6,450,000 6,830,000 5,985,000 6,190,000 7,090,000 7,415,000 2,484,291 2,543,639 2,107,036 1,677,770 1,967,021 1,841,342 40,386,510 42,480,741 44,033,762 48,631,822 53,631,266 62,441,243 (3,894,393) (5,026,795) (2,376,295) (4,565,932) (8,063,918) (19,014,601) 8,367,595 7,797,369 6,865,258 7,290,391 7,983,585 11,347,773 (7,712,368) (6,955,869) (6,027,028) (6,370,766) (7,015,785) (10,604,748) - - - - - - - 135,045 54,457 66,845 96,825 34,592 - 15,816,165 - 11,735,000 7,755,000 22,950,000 - - - - - 64,765 - (36,275) - (53,637) (35,848) (75,621) - 16,764,721 - - - - - (16,635,000) - - - - - - (9,035,000) - - - 655,227 16,886,156 (8,142,313) 12,667,833 8,783,777 23,716,761 (3,239,166)$ 11,859,361$ (10,518,608)$ 8,101,901$ 719,859$ 4,702,160$ 27.4%27.4%23.1%20.9%22.6%21.6% Fiscal Year 101 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 4,535,762$ DNADNA90,807$ 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 10,112,498 10,091,005 10,079,499 122,532 101,831 105,130 22.447%0.00597%2.334 Source: Hennepin County Taxpayer Services. 2000-2004 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. 2009 Year 2000 2008 Estimated Rate b Market Value (In Thousands) a Tax Capacity (In Thousands) 2007 Fiscal Direct 2005 2006 2001 2002 2003 2004 102 CITY OF EDINA, MINNESOTA DIRECT AND OVERLAPPING TAX CAPACITY RATES LAST TEN FISCAL YEARS Total BasicDebtTotal TaxDirect & RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap 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% 20.204%2.243%22.447%0.006%40.413%17.766%0.183%8.413%89.039% Source: Hennepin County Taxpayer Services. Some 2000-2004 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. City RatesOverlapping Rates ISD #273 EdinaFiscal Year 2009 2000 2005 2006 2001 2002 2003 2004 2007 2008 103 CITY OF EDINA, MINNESOTA PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO PercentagePercentage of Totalof Total Tax CapacityRankCapacityTax CapacityRankCapacity Southdale Shopping Center3,497,098$ 12.85%4,906,659$ 15.45% Galleria Shopping Center1,188,800 20.97%1,614,622 21.79% Southdale Office Park910,362 30.74%1,359,207 41.51% Centennial Lakes Retail679,250 40.55%663,442 90.74% Southdale Medical Bldg638,930 50.52%716,706 70.80% National Car631,752 60.52%957,300 61.06% Centennial Lakes Phase V615,384 70.50%- 0.00% Centennial Lakes Phase IV603,462 80.49%- 0.00% Macy's Department Stores520,174 90.42%- 0.00% Target510,186 100.42%432,156 110.48% Pentagon Office Park- 0.00%1,560,591 31.73% United Healthcare Corporation- 0.00%882,609 50.98% Cedars of Edina- 0.00%710,438 80.79% Edinborough Plaza- 0.00%508,820 100.57% Totals9,795,398$ 7.99%14,312,550$15.89% Source: City of Edina Assessing Office 20002009 Taxpayer 104 CITY OF EDINA, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS TotalCollections in TaxPercentageSubsequentPercentage LevyAmountof LevyYearsAmountof Levy 14,391,078$ 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%106,524 18,173,416 96.62% 19,667,551 19,090,016 97.06%108,171 19,198,187 97.61% 20,820,130 20,310,889 97.55%164,059 20,474,948 98.34% 21,530,528 21,347,789 b 99.15%b 66,091 21,413,880 99.46% 22,605,669 22,178,719 c 98.11%c 122,057 22,300,776 98.65% 24,153,933 23,484,137 d 97.23%d - 23,484,137 97.23% Source: Hennepin County Taxpayer Services. a Beginning in 2002, the State of Minnesota quit reimbursing the City for the market value homestead credit (MVHC) program. The MVHC 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 MVHC in 2002, tax collections as a percent of levy dropped, as shown in this table. Due to the phase out provision in the MVHC 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 MVHC after five years of not making payments. c In 2008 the State of Minnesota reimbursed the City for only 50% of MVHC. d In 2009 the State of Minnesota once again quit reimbursing the City for MVHC. Total Collections to Date Taxes Payable 2005 2006 2009 Collected within the Fiscal Year of the Levy 2004 2000 2001 2002 2003 2008 2007 105 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 7,550$ -$ 66,670$ 170$ 10,520$ 3,265$ 88,175$ 4.24%1,859$ 7,250 - 47,590 - 14,670 2,955 72,465 3.51%1,527 6,950 12,410 40,855 - 7,890 2,630 70,735 3.31%1,490 8,165 12,035 35,900 - 7,145 5,495 68,740 2.97%1,445 7,295 11,595 30,760 - 6,325 4,860 60,835 2.58%1,263 11,765 16,560 28,905 1,460 5,475 4,215 68,380 2.92%1,441 5,670 16,080 20,460 1,460 4,595 3,550 51,815 2.19%1,105 10,990 15,390 15,665 7,170 3,690 11,070 63,975 2.39%1,359 10,420 14,675 10,015 14,770 2,845 23,570 76,295 3.00%1,584 24,020 22,650 4,125 14,620 4,450 21,525 91,390 3.59%1,897 Details regarding the City's outstanding debt may be found in the notes to the financial statements. 2009 2001 2002 2003 2004 2007 2008 2005 2006 Business-Type ActivitiesGovernmental Activities 2000 Year Fiscal 106 CITY OF EDINA, MINNESOTA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (dollars in thousands, except per capita) GeneralPublicTaxPercentage ObligationProjectIncrementof PropertyPer DebtRevenueBonds Total Value a Capita 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%729 24,020 22,650 4,125 50,795 0.50%1,055 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. 2009 2008 2007 2006 2001 2002 2003 2004 General Bonded Debt Year Fiscal 2000 2005 107 CITY OF EDINA, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF DECEMBER 31, 2009 Net GeneralPercentage Obligation Bonded ApplicableCity Share Debt Outstanding a in City b of Debt Overlapping Debt: Hennepin County600,494,319$ 7.29%43,776,036$ Hennepin Suburban Park District71,017,752 9.89%7,023,656 Hennepin Regional Rail Authority42,430,624 7.29%3,093,192 School Districts: ISD No. 273 (Edina)82,581,000 98.64%81,457,898 ISD No. 270 (Hopkins)156,028,964 8.74%13,636,931 ISD No. 271 (Bloomington)80,285,172 0.00%- ISD No. 272 (Eden Prairie)78,098,382 0.92%718,505 ISD No. 280 (Richfield)30,739,811 23.24%7,143,932 ISD No. 283 (St. Louis Park)54,914,328 0.02%10,983 Metro Council131,613,280 3.23%4,251,109 Total Overlapping Debt1,328,203,632 161,112,242 City of Edina26,528,780 100.00%26,528,780 Total Overlapping and Direct Debt1,354,732,412$ 187,641,022$ Ratio of debt per capita (48,169 population)3,895$ Ratio of debt to estimated market valuation of $10,112,498,0001.86% Source: Hennepin County Taxpayer Services a Calculation excludes revenue and special assessment bonds as well as sinking fund balance, if any. b The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages were estimated by determining the portion of another governmental unit's tax capacity that is within the City's boundaries and dividing it by each unit's total tax capacity. Direct Debt: Debt Ratios: 108 CITY OF EDINA, MINNESOTA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (dollars in thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008a 2009 Debt limit 97,235$ 116,431$ 138,279$ 138,190$ 160,674$ 173,867$ 191,974$ 199,775$ 302,385$ 301,369$ Total net debt applicable to limit 7,550 7,250 19,360 20,200 18,890 29,785 21,750 26,380 25,095 46,670 Legal debt margin 89,685$ 109,181$ 118,919$ 117,990$ 141,784$ 144,082$ 170,224$ 173,395$ 277,290$ 254,699$ Total net debt applicable to the limit as a percentage of debt limit 7.76%6.23%14.00%14.62%11.76%17.13%11.33%13.20%8.30%15.49% 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. 301,368,951 22,650,000 254,698,951$ Fiscal Year 10,045,631,700$ 24,020,000 46,670,000 Legal Debt Margin Calculation for Fiscal Year 2009 109 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 20091,424,405 - 1,424,405 745,000 665,193 1,410,193 1.01 Tax Increment Bonds 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 20097,587,386 - 7,587,386 5,890,000 244,236 6,134,236 1.24 Permanent Improvement Revolving Bonds (Special Assessment) 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 20091,508,662 - 1,508,662 150,000 513,708 663,708 2.27 Utility Bond 20008,793,386 7,205,934 1,587,452 335,000 127,525 462,525 3.43 20018,556,810 7,065,589 1,491,221 310,000 116,794 426,794 3.49 20028,561,287 7,399,773 1,161,514 325,000 105,205 430,205 2.70 20039,668,434 7,769,810 1,898,624 335,000 160,691 495,691 3.83 20049,473,355 7,643,129 1,830,226 635,000 158,451 793,451 2.31 200510,225,975 8,107,039 2,118,936 645,000 141,226 786,226 2.70 200611,416,361 9,107,143 2,309,218 665,000 129,608 794,608 2.91 200713,125,419 9,735,839 3,389,580 690,000 108,840 798,840 4.24 200813,544,728 10,076,422 3,468,306 1,485,000 459,983 1,944,983 1.78 200914,857,798 10,815,215 4,042,583 2,045,000 803,157 2,848,157 1.42 Recreational Facility Bonds 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 20095,932,900 5,977,793 (44,893) 860,000 92,128 952,128 (0.05) Debt service requirementsFiscal Year 110 CITY OF EDINA, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Estimated PersonalPer CapitaHigh School IncomePersonalGraduationUnemployment Population(In thousands)IncomeRateRate 47,4252,081,388$ 43,888$ 88.2%2.40% 47,4652,065,867 43,524 91.5%3.30% 47,4652,134,976 44,980 91.5%4.00% 47,5702,317,801 48,724 91.5%4.10% 48,1562,356,369 48,932 93.3%3.90% 47,4482,341,464 49,348 92.1%3.30% 46,8962,365,434 50,440 92.0%3.00% 47,0902,673,959 56,784 92.0%3.45% 48,1692,547,369 52,884 92.0%4.33% 48,1692,547,369 52,884 92.4%6.38% Sources: Population data from U.S. Census Bureau/Metropolitan Council. 2008 is the most recent estimate. Personal income and per capita income estimates based on MN Department of Employment and Economic Development Quarterly Census of Employment and Wages. 2008 is the most recent. 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. 2009 2007 2008 Fiscal Year 2006 2005 2004 2003 2002 2001 2000 111 CITY OF EDINA, MINNESOTA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Percentage ofPercentage of Total City Total City EmployeesRankEmploymentEmployeesRankEmployment Jerry's Enterprises, Inc.4,500 120.74%2,000 27.77% Fairview Southdale Hospital2,500 211.52%2,400 19.32% Macy's (Marshall Field's or Dayton's)1,200 35.53%500 51.94% Edina Public Schools ISD #2731,172 45.40%DNADNADNA Nash Finch Co.350 51.61%350 81.36% International Dairy Queen Inc.300 61.38%300 91.17% City of Edina262 71.21%DNADNADNA JC Penney Co.250 81.15%400 61.55% Edina Realty210 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% Totals10,940 50.43%7,650 29.72% Source: State of Minnesota Department of Employment and Economic Development (DEED). DNA: Historical data is not available 20002008 Employer 112 CITY OF EDINA, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General Government Administration8.00 8.00 8.25 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 3.85 Finance 5.50 5.75 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 Elections 0.50 0.50 1.00 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 6.50 7.50 7.50 7.50 8.50 8.50 8.50 Supervision 2.00 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 Maintenance 28.00 27.00 28.00 28.00 28.00 28.00 28.00 28.00 28.00 27.00 Public Safety Police Protection67.00 70.00 69.00 68.00 66.00 69.00 69.00 70.00 70.00 71.00 Animal Control 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Fire Protection31.00 32.00 32.00 32.00 32.00 32.00 32.00 33.00 33.00 33.00 Public Health 3.08 3.08 3.75 2.75 2.75 2.75 2.75 2.75 2.75 2.65 Inspections 5.75 6.75 6.50 6.50 6.50 6.50 6.50 7.50 7.50 7.50 Parks & Recreation Administration 7.00 7.00 7.00 7.00 6.80 6.80 6.80 6.80 6.80 6.80 Maintenance 16.00 17.00 17.00 16.00 16.50 16.40 16.40 16.40 16.40 16.40 Central Services General 1.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 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 Bldg0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 Equipment Ops7.00 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Utilities 16.25 15.70 14.50 14.50 15.50 15.75 15.75 15.25 15.75 18.75 Liquor 10.00 9.30 9.75 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 0.55 Golf Course 14.00 14.00 15.00 15.00 13.00 13.00 13.00 13.00 13.00 13.00 Arena 5.00 5.00 5.00 6.00 6.00 6.00 6.00 6.00 6.00 5.00 Art Center 3.00 3.00 3.00 3.00 3.00 2.50 2.00 2.00 2.00 2.00 Edinborough Park/ Centennial Lakes 12.00 13.00 12.00 12.00 12.00 12.00 11.00 12.00 12.00 12.00 Other 2.00 2.00 2.00 2.00 2.00 2.00 2.00 4.00 4.00 5.00 Total 266.83 272.83 273.00 270.00 268.50 271.50 270.00 277.50 278.00 281.00 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 113 CITY OF EDINA, MINNESOTA OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 General Government Total City employees801 868 860 879 870 909 887 890 918 885 Votes cast a 30,483 10,008 28,156 10,721 31,730 1,367 26,270 7,930 31,512 2,733 Public Works Asphalt placed (tons)- - - - - - 9,000 8,000 7,500 9,500 Concrete (cu. yds.)- - - - - - 650 850 480 640 Public Safety Crimes reported - 2,411 2,139 2,073 1,983 1,908 1,937 2,010 2,025 NA Fire calls 1,091 1,142 1,106 1,062 1,060 1,055 963 1,012 913 852 Medical calls 2,914 2,931 3,153 3,030 3,199 3,423 3,470 3,510 3,516 3,496 Central Services Vehicle fixes - - - - - - 2,398 2,460 2,967 2,539 Utilities Daily consumption b - - - - - - 7,209 7,372 7,376 7,596 Aquatic Center Attendance 125,000 115,000 111,056 96,419 88,636 139,415 120,406 114,173 110,000 64,836 Golf Course Total rounds played137,838 120,898 112,078 123,770 116,734 113,679 114,737 112,821 112,663 117,819 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 114 CITY OF EDINA, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION LAST TEN FISCAL YEARS 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Public Works Miles of streets224 224 224 224 224 224 224 224 224 224 City parking ramps4 4 4 4 4 4 4 4 4 4 Public Safety Fire stations 2 2 2 2 2 2 2 2 2 2 Parks & Recreation City parks 39 39 39 40 40 40 40 40 40 40 Acreage of parks1,552 1,552 1,552 1,553 1,553 1,553 1,553 1,553 1,553 1,553 Park buildings 26 26 27 27 27 27 27 27 27 27 Utilities Wells 18 18 18 18 18 18 18 19 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 14,851 14,851 14,851 14,851 14,851 13,933 Arena Ice sheets 3 3 3 3 3 3 3 3 3 3 Source: Various City departments Fiscal Year Function 115