HomeMy WebLinkAbout2011 Comprehensive Annual Financial Report
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2011
Prepared by:
Department of Finance
John Wallin – Treasurer and Finance Director
Eric Roggeman – Assistant Finance Director
Kyle Sawyer – Accountant
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
I. INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 4
Organization 5
Organization Chart 6
II. FINANCIAL SECTION
Independent Auditors' Report 7
Management's Discussion and Analysis9
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 21
Statement of Activities 22
Fund Financial Statements:
Balance Sheet - Governmental 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 Fund65
Budgetary Comparison Schedule - HRA Fund70
Other Post-Employment Benefits Plan Schedule of Funding Progress71
Notes to Required Supplementary Information72
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 Funds76
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds77
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 78
Special Revenue Fund - Communications Fund Schedule of Revenues,
Expenditures and Changes in Fund Balances - Budget and Actual79
Special Revenue Fund - Police Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 80
Special Revenue Fund - Braemar Memorial Fund
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 81
Combining Statement of Net Assets - Nonmajor Proprietary Funds84
Combining Statement of Revenues, Expenses and Changes in
Fund Net Assets - Nonmajor Proprietary Funds85
Combining Statement of Cash Flows - Nonmajor Proprietary Funds86
Combining Statement of Changes in Assets and Liabilities - Agency Funds89
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates91
Combined Schedule of Bonded Indebtedness92
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #120294
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #120395
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207 96
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Assets by Component 98
Changes in Net Assets 100
Fund Balances of Governmental Funds102
Changes in Fund Balances of Governmental Funds104
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property106
Direct and Overlapping Tax Capacity Rates107
Principal Property Tax Payers 108
Property Tax Levies and Collections109
Debt Capacity:
Ratios of Outstanding Debt by Type110
Ratios of General Bonded Debt Outstanding111
Direct and Overlapping Governmental Activities Debt 112
Legal Debt Margin Information 113
Pledged Revenue Coverage 114
Demographic and Economic Information:
Demographic and Economic Statistics 115
Principal Employers 116
Operating Information:
Full-Time Equivalent City Government Employees by Function 117
Operating Indicators by Function 118
Capital Asset Statistics by Function 119
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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 has 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.
Assignments for investments and compensated absences are all calculated as specified in the
policies. In addition, the City has $11,744,764 unassigned fund balance in the general fund. This
amount is $1,642,395 above the goal range identified in the policy.
Major initiatives
The City is continually working to update our aging infrastructure. Our annually adopted five-year
Capital Improvement Plan includes spending and financing projections for these projects.
3
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Edina for its
comprehensive annual financial report for the fiscal year ended December 31, 2010. This was the fifth
consecutive year that the government has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program’s
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this report would not have been possible without the dedicated services of the
Finance Department staff. We would like to express our appreciation to all members of the
department who assisted and contributed to the preparation of this report. Credit also must be given
to the Mayor and the City Council for their unfailing support for maintaining the highest standards of
professionalism in the management of the City’s finances.
Respectfully submitted,
John Wallin
Finance Director
Eric Roggeman
Assistant Finance Director
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2011
Term Expires
Mayor:
James Hovland December 31, 2012
Council Members:
Mary Brindle December 31, 2012
Ann Swenson December 31, 2012
Joni Bennett December 31, 2014
Josh Sprague December 31, 2014
City Manager:
Scott Neal Appointed
Finance Director/Treasurer:
John Wallin Appointed
City Clerk:
Debra Mangen Appointed
5
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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, 2011. 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
$197,931,816 (net assets). Of this amount, $42,470,823 (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 $10,018,903. $4,502,112 of this increase is due to
special assessment revenues, which help support our road reconstruction program. Also,
$3,950,174 of the increase is due to Utility revenues over expenses, which are being reinvested
in new or rebuilt infrastructure according to the City’s Capital Improvement Plan (CIP) and Utility
Rate Study.
As of the close of the current fiscal year, the City’s governmental funds reported combined ending
fund balances of $48,906,739, a decrease of $917,733 in comparison with the prior year.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$11,744,764 or 42% of total general fund expenditures.
The City’s total bonded debt increased by $7,315,000 during the current fiscal year, from
$88,135,000 to $95,450,000. The City issued new debt during the year consisting of $14,550,000
general obligation bonds to finance various street and utility infrastructure improvement projects.
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 all of its other
governmental and proprietary funds. A budgetary comparison statement has been provided
for the general fund and all the special revenue 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 $197,931,816 at the close of the most
recent fiscal year.
The largest portion of the City's net assets ($131,922,118 or 67%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
12
City of Edina’s Net Assets
2011 2010 2011 2010 2011 2010
Current and
other assets66,717,049$ 66,496,469$ 26,001,510$ 21,442,067$ 92,718,559$ 87,938,536$
Capital assets134,804,379 129,590,209 83,474,196 71,644,476 218,278,575 201,234,685
Total assets201,521,428$ 196,086,678$ 109,475,706$ 93,086,543$ 310,997,134$ 289,173,221$
Long-term liabilities
outstanding61,858,058$ 63,872,044$ 31,119,126$ 21,493,950$ 92,977,184$ 85,365,994$
Other liabilities12,158,427 10,769,501 7,929,707 5,124,813 20,088,134 15,894,314
Total liabilities74,016,485$ 74,641,545$ 39,048,833$ 26,618,763$ 113,065,318$ 101,260,308$
Net assets:
Invested in capital
assets, net of
related debt75,045,018$ 69,783,162$ 56,877,100$ 48,807,806$ 131,922,118$ 118,590,968$
Restricted22,915,776 9,952,443 623,099 618,852 23,538,875 10,571,295
Unrestricted29,544,149 41,709,528 12,926,674 17,041,122 42,470,823 58,750,650
Total net assets 127,504,943$ 121,445,133$ 70,426,873$ 66,467,780$ 197,931,816$ 187,912,913$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net assets ($23,538,875) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net assets
($42,470,823) 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 a decrease of $16,279,827 in unrestricted net assets, largely due to investments in
new and rebuilt infrastructure made during the year.
Management’s Discussion and Analysis (Continued)
13
As shown below, the City’s net assets increased by $10,018,903 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Assets
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues:
Charges for services7,733,906$ 7,118,171$ 36,892,116$ 35,777,795$ 44,626,022$ 42,895,966$
Operating grants and
contributions1,392,892 1,162,411 135,428 373,230 1,528,320 1,535,641
Capital grants and
contributions5,770,912 13,325,431 - - 5,770,912 13,325,431
General revenues:
Property taxes25,040,871 25,122,113 - - 25,040,871 25,122,113
Other taxes4,805,505 5,180,361 - - 4,805,505 5,180,361
Gain on disposal
of assets131,365 35,594 - 26,574 131,365 62,168
Unrestricted investment
earnings601,250 474,444 280,438 205,965 881,688 680,409
Total revenues45,476,701 52,418,525 37,307,982 36,383,564 82,784,683 88,802,089
Expenses:
General government7,013,231 6,961,082 - - 7,013,231 6,961,082
Public safety16,024,575 15,543,594 - - 16,024,575 15,543,594
Public works9,193,336 8,558,363 - - 9,193,336 8,558,363
Parks5,540,585 5,608,758 - - 5,540,585 5,608,758
Interest on long-term debt2,339,370 2,528,424 - - 2,339,370 2,528,424
Utilities- - 12,130,685 11,848,538 12,130,685 11,848,538
Liquor- - 11,727,106 11,594,643 11,727,106 11,594,643
Aquatic center- - 718,027 769,608 718,027 769,608
Golf course- - 3,390,949 3,561,573 3,390,949 3,561,573
Community activity
centers- - 4,687,916 4,492,779 4,687,916 4,492,779
Total expenses 40,111,097 39,200,221 32,654,683 32,267,141 72,765,780 71,467,362
Increase in net assets
before transfers5,365,604 13,218,304 4,653,299 4,116,423 10,018,903 17,334,727
Transfers694,206 765,994 (694,206) (765,994) - -
Increase in net assets6,059,810 13,984,298 3,959,093 3,350,429 10,018,903 17,334,727
Net assets - January 1121,445,133 107,460,835 66,467,780 63,117,351 187,912,913 170,578,186
Net assets - December 31127,504,943$ 121,445,133$ 70,426,873$ 66,467,780$ 197,931,816$ 187,912,913$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
14
Governmental Activities
Governmental activities increased the City's net assets by $6,059,810, accounting for 60% of the total
growth in net assets. Key elements of this increase are as follows:
Property tax revenues decreased by $81,242 (0.3%) during the year, which less than the
property tax levy increase of 1% outlined in our 2011 budget due to several commercial
property tax petitions, judgments and settlements during the year.
The City also collected $4,083,345 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.
The debt service fund paid a total of $4,480,000 in principal payments during 2011, including
the tax increment debt.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services17%
Operating grants and
contributions
3%
Capital grants and contributions
13%
Property taxes55%
Other taxes
10%
Other2%
Revenues by Source -Governmental Activities
-
2
4
6
8
10
12
14
16
18
General
government
Public safetyPublic worksParksInterest on
long-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 $3,959,093 accounting for 40% of the City's growth
in net assets. Key elements of the current year increase are as follows:
The utility fund had income before transfers of $3,950,174 for 2011. This additional revenue
is used to invest in new and rebuilt utility infrastructure according to the City’s CIP and utility
rate study.
Business-type activities made net transfers of $694,206 to governmental activities during
2011 to provide cash flow for operational and capital improvement needs.
Charges for
services
98.9%
Operating grants
and
contributions
0.4%
Other
0.8%
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, unassigned 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 $48,906,739, a decrease of $917,733 in comparison with the prior year. Approximately
24% of this total amount ($11,744,764) constitutes unassigned fund balance. The remainder of the
fund balance is 1) nonspendable due to prepaid items ($10,871), 2) restricted by external creditors,
grantors, laws or regulations ($27,512,883), or 3) assigned by internal constraints ($9,638,221).
The general fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the general fund was $11,744,764. As a measure of the general fund’s
liquidity, unassigned fund balance represents 42% of total general fund expenditures.
The fund balance of the City’s general fund increased by $594,006 during the current fiscal year. Key
factors in this increase are as follows:
Total general fund revenues were $1,164,609 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 13% in the
current fiscal year after a 14.5% increase in 2010.
Total general fund expenditures were $730,247 under budget. Much of this savings occurred
in the street maintenance and parks maintenance departments, which spent less than
budgeted on salaries and benefits due to position openings and paths and hard surfaces
repair.
The liquor fund transferred $765,100 of profits to the general fund, as planned in the 2011
budget.
The remaining funds of the communications fund were also transferred into the general fund,
as the communications department is budgeted in the general fund beginning in 2012.
Transfers out of the general fund totaled $2,483,530 for a variety of purposes planned as part
of the 2012 budget process.
The Housing and Redevelopment Authority fund balance increased by $2,865,432 in the current
fiscal year because there were no large spending projects financed from tax increment funds during
the year.
The debt service fund has a total fund balance of $8,068,183, all of which is restricted for the
payment of debt service. The net increase in fund balance during the current year in the debt service
fund was $1,963,325. Fund balance increased during the year as the result of $1,328,530 transfer
made from the general fund for the early retirement of some debt, as specified by the adopted 2012
budget.
The construction fund balance decreased by $5,320,461 in 2011 due to capital outlay related to
various projects including the new public works facility. Construction on the $22 million dollar facility
was nearly completed in 2011, even though the debt used to finance it was issued in previous years.
Also, new debt was issued in 2011 to help finance various street improvement projects.
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 $9,752,721. The total
growth in net assets was $3,850,174. Operating revenues and expenses in the utilities fund increased
by 5.6% and 2.9%, respectively, in 2011, due to rate increases that are intended to help replace
aging infrastructure. The City invested $11,222,480 in utility fund capital assets during 2011.
Unrestricted net assets of the liquor fund at the end of the year amounted to $1,582,468. Total net
assets increased by $190,278. 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 $1,255,100 to other funds during 2011. 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 $473,338.
Aquatic center revenues decreased slightly from 2010 due to more favorable weather for the aquatic
center in 2010. The aquatic center remains profitable and has started construction on a significant
new amenity planned for a summer 2012 opening.
Unrestricted net assets of the golf course fund at the end of the year amounted to a deficit of
($1,411,681), an increase of $36,752 from the prior year. Unrestricted net assets have been declining
or essentially flat for a number of years in the golf course fund because cash flow is not sufficient to
make principal and interest payments on outstanding debt.
General Fund Budgetary Highlights
During the year there was a $1,495,751 increase in appropriations between the original and final
amended budget. The increase was a transfer to the construction and debt service funds of
unreserved and undesignated general fund balance according to the City’s previous fund balance
policy, before it was revised in December 2011 to comply with new terminology and concepts
introduced by GASB Statement No. 54.
During the year, revenues were $1,164,609 more than budget, as the improving economy affected
our permits and charges for services revenues. The largest increase from 2010 was in the licenses
and permits category, which exceeded budget by $378,834.
Many City departments were under budget for the year, particularly the street maintenance
department, which was under staffed during the year because positions that came open through
attrition were not immediately filled. The parks maintenance department was under budget due
partially to lower than expected paths and hard surfaces repair spending. 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, 2011, amounted to $218,278,575 (net of accumulated depreciation).
This investment in capital assets included land, land improvements, intangible assets such as
easements, infrastructure assets (roads, bridges, sidewalks, and similar items), buildings, vehicles
and equipment. The total increase in the City’s investment in capital assets for the current fiscal year
was 8.5 percent (a 4 percent increase for governmental activities and a 16.5 percent increase for
business-type activities).
Management’s Discussion and Analysis (Continued)
18
Major capital asset events during the current fiscal year included the following:
The City continued construction on a new public works facility in 2011; construction in
progress as of the close of the fiscal year has reached $22,269,941.
A variety of street construction, sidewalk and traffic signal projects began in 2011.
Construction started on water treatment plant #6, with an estimated final cost of
approximately $6 million dollars.
A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer; construction in progress as of the close of the fiscal year reached $12,660,630.
City of Edina’s Capital Assets
(Net of Depreciation)
2011 2010 2011 2010 2011 2010
Land and land
improvements24,630,058$ 26,867,389$ 4,281,650$ 4,497,718$ 28,911,708$ 31,365,107$
Easements111,000 - - - 111,000 -
Buildings and
improvements36,293,919 37,983,299 7,757,607 5,608,857 44,051,526 43,592,156
Machinery and equipment7,561,749 7,419,573 2,334,264 2,601,682 9,896,013 10,021,255
Infrastructure32,901,599 32,138,548 54,318,904 53,486,360 87,220,503 85,624,908
Construction in progress33,306,054 25,181,400 14,781,771 5,449,859 48,087,825 30,631,259
Total 134,804,379$ 129,590,209$ 83,474,196$ 71,644,476$ 218,278,575$ 201,234,685$
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 $95,450,000, an increase of $7,315,000 from 2010. This increase resulted from the
payment of previously scheduled principal payments offset by $14,550,000 in new debt issued.
$29,700,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount decreased from 2010 due to regularly scheduled principal
payments made during the year.
$18,260,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount increased from 2010 due to a new debt issue to finance the cost
of various improvement projects.
An additional $2,480,000 of general obligation tax increment debt financed the City’s economic
development program. This amount decreased in 2011 due to regularly scheduled principal payments
on outstanding issues.
Also outstanding is $13,160,000 public project revenue bonds which financed two gymnasiums and
the new public works facility. This amount decreased in 2011 due to regularly scheduled principal
payments on outstanding issues.
There is a total of $31,850,000 in revenue bonds for improvements to the enterprise funds. This
amount increased $8,475,000 during the year due to issuance of new bonds to finance the cost of
various utility infrastructure improvements.
Management’s Discussion and Analysis (Continued)
19
City of Edina’s Outstanding Debt
2011 2010 2011 2010 2011 2010
Tax increment bonds 2,480,000$ 3,320,000$ -$ -$ 2,480,000$ 3,320,000$
General obligation bonds 29,700,000 31,800,000 - - 29,700,000 31,800,000
Public improvement bonds 18,260,000 16,270,000 - - 18,260,000 16,270,000
Public project revenue bonds13,160,000 13,370,000 - - 13,160,000 13,370,000
Revenue bonds - - 31,850,000 23,375,000 31,850,000 23,375,000
Total63,600,000$ 64,760,000$ 31,850,000$ 23,375,000$ 95,450,000$ 88,135,000$
Governmental Activities Business-Type Activities Totals
The City maintains an Aaa rating from Moody's and an AAA rating from Standard & Poor’s.
State statutes limit the amount of general obligation debt a Minnesota city may issue up to 3% of total
Estimated Market Value. The current debt limitation for the City is $282,958,227. Only $42,860,000 of
the City's outstanding debt is counted within the statutory limitation.
Additional information on the City’s long-term debt can be found in Note 5.
Economic Factors and Next Year’s Budget
The City strives to provide an uncommonly high quality of life for our residents and businesses and
the relatively healthy local economy helps to make this goal a reality. The unemployment rate in
Edina for December 2011 was 5.25%, well below the state and national levels. The City is home to
Southdale Center, the nation’s first fully enclosed climate-controlled regional shopping mall, Fairview
Southdale hospital, as well as several corporate headquarters. In addition to its healthy economy,
Edina is known for excellent public schools, as the Edina school system has been consistently
selected as one of the best in the country. Ninety-five percent of seniors go to college and eighty-six
percent finish in five years.
Property values in Edina increased at a rapid pace for several years through 2006, but values have
declined since then. Estimated market value of all real estate actually decreased 7.1% for taxes
payable in 2011.
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2002200320042005200620072008200920102011
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
Management’s Discussion and Analysis (Continued)
20
The City collects property taxes based on tax capacity, which roughly equals estimated market value
multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are
set by state statute. Tax capacity for real estate decreased 8.3% for taxes payable in 2011, but had
been positive from 2002 through 2008.
Due to the increases in market value and tax capacity since 2002, 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 2012 fiscal year. The
City’s adopted 2012 budget includes a property tax levy of $26,248,226 for the all funds, an increase
of 1.8% from the 2011 levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2011
GovernmentalBusiness-type
Activities Activities Total
Assets:
Current assets:
Cash and cash equivalents11,332$ 41,132$ 52,464$
Investments50,573,378 12,298,702 62,872,080
Restricted investments2,087,548 5,771,731 7,859,279
Accrued interest 188,692 25,582 214,274
Accounts receivable, net609,850 3,788,738 4,398,588
Special assessments receivable11,196,888 513,259 11,710,147
Internal balances(891,580) 891,580 -
Due from other governments416,255 6,438 422,693
Prepaid items10,871 353,675 364,546
Inventory - 1,138,560 1,138,560
Total current assets 64,203,234 24,829,397 89,032,631
Noncurrent assets:
Advances to other funds- 1,000,000 1,000,000
Deferred charges929,350 172,113 1,101,463
Investment in joint powers agreement1,584,465 - 1,584,465
Nondepreciable capital assets 49,398,418 15,870,736 65,269,154
Depreciable capital assets (net)85,405,961 67,603,460 153,009,421
Total noncurrent assets137,318,194 84,646,309 221,964,503
Total assets201,521,428 109,475,706 310,997,134
Liabilities:
Current liabilities:
Accounts payable 1,960,698 587,070 2,547,768
Salaries payable967,020 259,649 1,226,669
Accrued interest payable926,455 365,053 1,291,508
Contracts payable605,567 3,248,961 3,854,528
Due to other governments315,563 83,681 399,244
Deposits payable 28,084 112,216 140,300
Unearned revenue153,970 52,733 206,703
Compensated absences payable1,531,070 340,344 1,871,414
Bonds payable 5,670,000 2,880,000 8,550,000
Total current liabilities 12,158,427 7,929,707 20,088,134
Noncurrent liabilities:
Net OPEB obligation907,565 119,780 1,027,345
Compensated absences payable2,296,604 510,519 2,807,123
Bonds payable, net of unamortized discount58,653,889 29,488,827 88,142,716
Advances from other funds - 1,000,000 1,000,000
Total noncurrent liabilities 61,858,058 31,119,126 92,977,184
Total liabilities 74,016,485 39,048,833 113,065,318
Net assets:
Invested in capital assets, net of related debt75,045,018 56,877,100 131,922,118
Restricted for tax increments13,680,570 - 13,680,570
Restricted for debt service8,068,183 623,099 8,691,282
Restricted for other1,167,023 - 1,167,023
Unrestricted29,544,149 12,926,674 42,470,823
Total net assets 127,504,943$ 70,426,873$ 197,931,816$
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, 2011
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government7,013,231$ 969,745$ 163,516$ -$
Public safety16,024,575 5,988,485 845,011 -
Public works9,193,336 378,233 195,000 5,742,169
Parks5,540,585 397,443 87,389 28,743
Interest on long-term debt2,339,370 - 101,976 -
Total government activities40,111,097 7,733,906 1,392,892 5,770,912
Business-type activities:
Utilities12,130,685 15,873,937 118,351 -
Liquor11,727,106 13,172,484 - -
Aquatic center718,027 913,383 - -
Golf course3,390,949 3,285,741 - -
Community activity centers4,687,916 3,646,571 17,077 -
Total business-type activities32,654,683 36,892,116 135,428 -
Total primary government72,765,780$ 44,626,022$ 1,528,320$ 5,770,912$
The accompanying notes are an integral part of these financial statements.
Program Revenues
22
GovernmentalBusiness-type
ActivitiesActivitiesTotal
(5,879,970)$ -$ (5,879,970)$
(9,191,079) - (9,191,079)
(2,877,934) - (2,877,934)
(5,027,010) - (5,027,010)
(2,237,394) - (2,237,394)
(25,213,387) - (25,213,387)
- 3,861,603 3,861,603
- 1,445,378 1,445,378
- 195,356 195,356
- (105,208) (105,208)
- (1,024,268) (1,024,268)
- 4,372,861 4,372,861
(25,213,387) 4,372,861 (20,840,526)
General revenues:
Property taxes25,040,871 - 25,040,871
Tax increment collections4,083,345 - 4,083,345
Franchise taxes722,160 - 722,160
Unrestricted investment earnings601,250 280,438 881,688
Gain on disposal of capital assets131,365 - 131,365
Transfers694,206 (694,206) -
Total general revenues and transfers31,273,197 (413,768) 30,859,429
Change in net assets6,059,810 3,959,093 10,018,903
Net assets - beginning121,445,133 66,467,780 187,912,913
Net assets - ending127,504,943$ 70,426,873$ 197,931,816$
Net (Expense) Revenue and
Changes in Net Assets
23
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24
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2011
Housing &NonmajorTotal
RedevelopmentDebt GovernmentalGovernmental
GeneralAuthorityService ConstructionFunds Funds
Assets
Cash and cash equivalents -$ 6,279$ -$ -$ 5,053$ 11,332$
Unrestricted investments14,807,041 16,882,598 8,401,924 9,992,195 489,620 50,573,378
Restricted investments - - - 2,087,548 - 2,087,548
Accrued interest 35,205 103,250 14,948 34,420 869 188,692
Accounts receivable 591,535 - - 17,215 1,100 609,850
Special assessments
receivable - - 9,980,167 1,216,721 - 11,196,888
Due from other funds 64,899 - - - 471,377 536,276
Due from other governments247,317 32,822 20,556 9,779 105,781 416,255
Prepaid items 10,871 - - - - 10,871
Total assets 15,756,868$ 17,024,949$ 18,417,595$ 13,357,878$ 1,073,800$ 65,631,090$
Liabilities and fund balances
Liabilities:
Accounts payable 679,646$ 539,265$ 4,100$ 734,615$ 3,072$ 1,960,698$
Salaries payable 963,254 - - 3,766 - 967,020
Contracts payable - - - 605,567 - 605,567
Due to other funds 346,100 64,899 341,260 593,597 82,000 1,427,856
Due to other governments74,403 230,656 9,887 617 - 315,563
Deposits payable 15,159 - - 12,925 - 28,084
Unearned revenue 153,970 - - - - 153,970
Deferred revenue 51,120 - 9,994,165 1,220,308 - 11,265,593
Total liabilities 2,283,652 834,820 10,349,412 3,171,395 85,072 16,724,351
Fund balance:
Nonspendable 10,871 - - - - 10,871
Restricted 178,295 16,190,129 8,068,183 2,087,548 988,728 27,512,883
Assigned 1,539,286 - - 8,098,935 - 9,638,221
Unassigned 11,744,764 - - - - 11,744,764
Total fund balance 13,473,216 16,190,129 8,068,183 10,186,483 988,728 48,906,739
Total liabilities and
fund balances 15,756,868$ 17,024,949$ 18,417,595$ 13,357,878$ 1,073,800$ 65,631,090$
Fund balance reported above 48,906,739$
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 134,804,379
Investment in joint powers agreement are not available to pay for current-period expenditures, and therefore,
are not reported in the funds 1,584,465
Other long-term assets are not available to pay for current-period expenditures and, therefore,
are deferred in the funds 11,265,593
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.(69,056,233)
Net assets of governmental activities 127,504,943$
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, 2011
Housing &NonmajorTotal
RedevelopmentDebt GovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes 20,607,645$ -$ 3,722,300$ 642,221$ -$ 24,972,166$
Tax increment collections - 4,083,345 - - - 4,083,345
Franchise fees - - - - 722,160 722,160
Special assessments - - 2,466,394 2,035,718 - 4,502,112
License and permits 2,688,324 - - 36,439 - 2,724,763
Intergovernmental 918,726 - 101,976 1,867,831 171,431 3,059,964
Charges for services 3,107,866 - - 58,682 15,413 3,181,961
Fines and forfeitures 1,128,328 - - - 115,098 1,243,426
Investment income 59,849 319,825 66,188 96,589 58,799 601,250
Rental of property 538,269 - - 822 - 539,091
Other revenues 38,815 - - 44,008 73,408 156,231
Total revenues 29,087,822 4,403,170 6,356,858 4,782,310 1,156,309 45,786,469
Expenditures:
Current:
General government 4,188,989 576,196 - 90,697 883,599 5,739,481
Public safety 14,490,117 - - 74,682 103,973 14,668,772
Public works 5,756,283 - - 244,256 - 6,000,539
Parks 3,522,677 - - 105,153 6,092 3,633,922
Capital outlay:
General government - - - 679,538 - 679,538
Public safety - - - 1,104,449 - 1,104,449
Public works - - - 11,753,859 - 11,753,859
Parks - 27,183 - 670,467 - 697,650
Debt service:
Bond principal - - 4,480,000 - - 4,480,000
Interest and fiscal charges - - 2,278,068 - - 2,278,068
Total expenditures 27,958,066 603,379 6,758,068 14,723,101 993,664 51,036,278
Revenues over
(under) expenditures 1,129,756 3,799,791 (401,210) (9,940,791) 162,645 (5,249,809)
Other financing sources (uses):
Transfers in 1,947,780 - 2,262,889 1,405,000 - 5,615,669
Transfers out (2,483,530) (934,359) - (320,894) (1,182,680) (4,921,463)
Sale of capital assets - - - 209,773 - 209,773
Bonds issued - - 101,646 3,218,354 - 3,320,000
Premium on bonds issued - - - 108,097 - 108,097
Total other financing
sources (uses)(535,750) (934,359) 2,364,535 4,620,330 (1,182,680) 4,332,076
Net increase (decrease)
in fund balance 594,006 2,865,432 1,963,325 (5,320,461) (1,020,035) (917,733)
Fund balance - January 112,879,210 13,324,697 6,104,858 15,506,944 2,008,763 49,824,472
Fund balance - December 3113,473,216$ 16,190,129$ 8,068,183$ 10,186,483$ 988,728$ 48,906,739$
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, 2011
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)(917,733)$
Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense.
This is the amount by which capital outlays exceeded depreciation
in the current period.6,877,043
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.(78,408)
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.(441,133)
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.1,070,591
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.(450,550)
Change in net assets of governmental activities (page 23)6,059,810$
The accompanying notes are an integral part of these financial statements.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
December 31, 2011
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Assets:
Current assets:
Cash and cash equivalents -$ -$ -$ -$ 41,132$ 41,132$
Unrestricted investments 9,631,620 - - - 2,667,082 12,298,702
Restricted investments 5,771,731 - - - - 5,771,731
Interest receivable 12,616 - - - 12,966 25,582
Accounts receivable, net 3,667,389 - - - 121,349 3,788,738
Special assessments receivable513,259 - - - - 513,259
Due from other funds - 1,208,710 361,362 - 157,302 1,727,374
Due from other governments 6,438 - - - - 6,438
Prepaid expenses 353,675 - - - - 353,675
Inventory 18,725 1,027,018 - 80,492 12,325 1,138,560
Total current assets 19,975,453 2,235,728 361,362 80,492 3,012,156 25,665,191
Noncurrent assets:
Advances to other funds - - 1,000,000 - - 1,000,000
Deferred charges 136,982 - 6,001 3,776 25,354 172,113
Net capital assets 69,535,583 1,197,809 2,072,562 4,345,834 6,322,408 83,474,196
Total noncurrent assets 69,672,565 1,197,809 3,078,563 4,349,610 6,347,762 84,646,309
Total assets 89,648,018 3,433,537 3,439,925 4,430,102 9,359,918 110,311,500
Liabilities:
Current liabilities:
Accounts payable 162,833 260,237 738 48,328 114,934 587,070
Salaries payable 62,403 63,085 - 49,969 84,192 259,649
Accrued interest payable 317,052 - 7,277 5,891 34,833 365,053
Contracts payable 2,986,053 - 262,908 - - 3,248,961
Due to other funds 751,547 - - 84,247 - 835,794
Due to other governments 9,643 54,602 3 5,128 14,305 83,681
Deposits payable 112,216 - - - - 112,216
Unearned revenue - 6,731 - 37,867 8,135 52,733
Compensated absences payable 60,491 99,204 - 94,277 86,372 340,344
Bonds payable - current 2,360,000 - 135,000 285,000 100,000 2,880,000
Total current liabilities 6,822,238 483,859 405,926 610,707 442,771 8,765,501
Noncurrent liabilities:
Net OPEB obligation 35,008 20,594 - 28,826 35,352 119,780
Compensated absences payable90,737 148,807 - 141,416 129,559 510,519
Bonds payable, net of
unamortized discounts 26,439,843 - 463,354 313,329 2,272,301 29,488,827
Advances from other funds - - - 1,000,000 - 1,000,000
Total noncurrent liabilities 26,565,588 169,401 463,354 1,483,571 2,437,212 31,119,126
Total liabilities 33,387,826 653,260 869,280 2,094,278 2,879,983 39,884,627
Net assets:
Invested in capital assets,
net of related debt 46,507,471 1,197,809 1,474,208 3,747,505 3,950,107 56,877,100
Restricted for debt service - - 623,099 - - 623,099
Unrestricted 9,752,721 1,582,468 473,338 (1,411,681) 2,529,828 12,926,674
Total net assets 56,260,192$ 2,780,277$ 2,570,645$ 2,335,824$ 6,479,935$ 70,426,873$
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, 2011
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Operating revenues:
Sales - liquor -$ 12,904,363$ -$ 145,492$ -$ 13,049,855$
Sales - retail - 268,121 4,466 230,865 41,706 545,158
Sales - utilities 15,560,607 - - - - 15,560,607
Sales - concessions - - 117,148 203,598 85,556 406,302
Memberships - - 418,982 108,978 87,492 615,452
Admissions - - 333,889 313,735 767,123 1,414,747
Building rental - - 38,898 87,081 1,377,571 1,503,550
Rental of equipment - - - 335,161 119,230 454,391
Greens fees - - - 1,517,962 179,615 1,697,577
Other fees 310,495 - - 338,353 988,278 1,637,126
Total operating revenues 15,871,102 13,172,484 913,383 3,281,225 3,646,571 36,884,765
Operating expenses:
Cost of sales and services 1,862 9,648,160 31,115 320,132 104,853 10,106,122
Personal services 1,636,444 1,265,572 284,211 1,564,676 1,991,212 6,742,115
Contractual services 6,202,412 490,303 94,850 628,347 1,333,023 8,748,935
Commodities 751,191 61,182 61,400 329,006 422,596 1,625,375
Central Services 526,452 194,491 22,804 128,266 169,778 1,041,791
Depreciation 2,319,927 67,398 194,456 412,683 581,999 3,576,463
Total operating expenses11,438,288 11,727,106 688,836 3,383,110 4,603,461 31,840,801
Operating income (loss)4,432,814 1,445,378 224,547 (101,885) (956,890) 5,043,964
Nonoperating revenues (expenses):
Intergovernmental 118,351 - - - - 118,351
Investment income 88,571 - - - 191,867 280,438
Donations - - - - 17,077 17,077
Interest and fiscal charges (705,482) - (14,713) (11,928) (83,733) (815,856)
Amortization of bond deferred
charges (discounts)13,085 - (593) (447) (722) 11,323
Gain (loss) on sale
of capital asset - - (13,885) 4,536 - (9,349)
Miscellaneous 2,835 - - 4,516 - 7,351
Total nonoperating
revenues (expenses)(482,640) - (29,191) (3,323) 124,489 (390,665)
Income (loss) before transfers 3,950,174 1,445,378 195,356 (105,208) (832,401) 4,653,299
Transfers:
Transfers in - - - 100,000 4,690,587 4,790,587
Transfers out (100,000) (1,255,100) - - (4,129,693) (5,484,793)
Total transfers (100,000) (1,255,100) - 100,000 560,894 (694,206)
Change in net assets 3,850,174 190,278 195,356 (5,208) (271,507) 3,959,093
Net assets - January 1 52,410,018 2,589,999 2,375,289 2,341,032 6,751,442 66,467,780
Net assets - December 31 56,260,192$ 2,780,277$ 2,570,645$ 2,335,824$ 6,479,935$ 70,426,873$
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, 2011
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Funds Total
Cash flows from operating activities:
Receipts from customers and users15,220,562$ 13,175,208$ 913,383$ 3,262,827$ 3,599,542$ 36,171,522$
Payment to suppliers (7,697,569) (10,319,545) (211,430) (1,438,357) (2,170,241) (21,837,142)
Payment to employees (1,671,380) (1,286,201) (287,091) (1,528,687) (2,074,938) (6,848,297)
Donations received - - - - 17,077 17,077
Miscellaneous received 2,835 - - 4,516 - 7,351
Net cash provided by
(used in) operating activities5,854,448 1,569,462 414,862 300,299 (628,560) 7,510,511
Cash flows from noncapital financing activities:
State grant 118,351 - - - - 118,351
Transfer from other funds - - - 100,000 271,742 371,742
Transfer to other funds (100,000) (1,255,100) - - (31,742) (1,386,842)
Proceeds from interfund borrowing751,547 890,000 1,298,000 1,084,247 220,000 4,243,794
Payment of interfund borrowing (135,000) (1,208,710) (1,361,362) (1,110,000) (165,302) (3,980,374)
Net cash provided by (used in)
noncapital financing activities634,898 (1,573,810) (63,362) 74,247 294,698 (633,329)
Cash flows from capital and related financing activities:
Transfer from other funds - - - - 320,894 320,894
Proceeds from capital debt 11,527,236 - - - - 11,527,236
Acquisition of capital assets (11,222,480) - (454,603) (89,608) (477,686) (12,244,377)
Proceeds from sale
of capital assets - - - 6,750 - 6,750
Principal paid on bonds (2,270,000) - (125,000) (280,000) (80,000) (2,755,000)
Interest paid on bonds (693,285) - (15,949) (14,699) (84,400) (808,333)
Net cash provided by (used in)
capital and related
financing activities (2,658,529) - (595,552) (377,557) (321,192) (3,952,830)
Cash flows from investing activities:
Proceeds from sale of investments14,003,000 - - - 564,979 14,567,979
Purchase of investments (17,906,067) - - - - (17,906,067)
Interest received 71,921 - - - 123,861 195,782
Net cash flows provided by
(used in) investing activities(3,831,146) - - - 688,840 (3,142,306)
Net increase (decrease)
in cash and cash equivalents (329) (4,348) (244,052) (3,011) 33,786 (217,954)
Cash and cash equivalents -
January 1 329 4,348 244,052 3,011 7,346 259,086
Cash and cash equivalents -
December 31-$ -$ -$ -$ 41,132$ 41,132$
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, 2011
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) 4,432,814$ 1,445,378$ 224,547$ (101,885)$ (956,890)$ 5,043,964$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation 2,319,927 67,398 194,456 412,683 581,999 3,576,463
Donations - - - - 17,077 17,077
Miscellaneous revenue 2,835 - - 4,516 - 7,351
Changes in assets and liabilities:
Decrease (increase) in receivables(586,606) - - 22 1,015 (585,569)
Decrease (increase) in
special assessments (78,754) - - - - (78,754)
Decrease (increase) in
due from other governments 14,820 - - - - 14,820
Decrease (increase) in inventory(3,973) 84,727 - (19,559) 754 61,949
Decrease (increase) in
prepaid items 11,633 - - - - 11,633
Increase (decrease) in
accounts payable (225,156) (4,115) (1,222) (13,998) (143,811) (388,302)
Increase (decrease) in
salaries payable 947 (3,761) (2,880) 8,045 (4,751) (2,400)
Increase (decrease) in
due to other governments 1,844 (6,021) (39) 951 3,066 (199)
Increase (decrease) in
unearned revenue - 2,724 - (18,420) (48,044) (63,740)
Increase (decrease) in
net OPEB obligation 7,153 3,936 - 5,444 6,907 23,440
Increase (decrease) in
compensated absences (43,036) (20,804) - 22,500 (85,882) (127,222)
Total adjustments 1,421,634 124,084 190,315 402,184 328,330 2,466,547
Net cash provided by
(used in) operating activities5,854,448$ 1,569,462$ 414,862$ 300,299$ (628,560)$ 7,510,511$
Noncash investing activities:
Increase (decrease) in
fair value of investments 47,214 - - - 74,241 121,455
Noncash noncapital financing activities:
Transfer net assets to new fund - - - - (4,097,951) (4,097,951)
Transfer of net assets from old fund - - - - 4,097,951 4,097,951
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, 2011
Agency Funds
Assets
Cash 58,038$
Investments 310,000
Total assets 368,038$
Liabilities
Accounts payable 32,254$
Salaries payable 7,016
Due to other governmental units 328,768
Total liabilities 368,038$
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the statement of net assets and the
statement of changes in net assets) report information on all of the nonfiduciary activities
of the City. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
34
The statement of activities demonstrates the degree to which the direct expenses of a
given function or business-type activity are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or business-type activity.
Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or
business-type activity and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or business type activity.
Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements. Aggregated
information for the remaining nonmajor governmental and enterprise funds is reported in
a single column in the fund financial statements
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. The City’s only fiduciary fund type, agency funds, are
custodial in nature and do not have a measurement focus. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services
and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other
revenue items are considered to be measurable and available only when cash is received
by the City.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
35
The City reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The 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).
Private-sector standards of accounting and financial reporting issued prior to December
1, 1989, generally are followed in both the government-wide and proprietary fund
financial statements to the extent that those standards do not conflict with or contradict
guidance of the Governmental Accounting Standards Board. Governments also have the
option of following subsequent private-sector guidance for their business-type activities
and enterprise funds, subject to this same limitation. The City has elected not to follow
subsequent private-sector guidance.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
36
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are transactions
that would be treated as revenues, expenditures or expenses if they involved external
organizations, such as buying goods and services or payments in lieu of taxes, are
similarly treated when they involve other funds of the City of Edina. Elimination of these
charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the utilities, liquor, aquatic center, golf course, arena,
art center, Edinborough Park/Centennial Lake, Edinborough Park, and Centennial Lake
enterprise funds are charges to customers for sales and services. Operating expenses
for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for an allowable use, it is
the City’s policy to use restricted resources first, then unrestricted resources as they are
needed.
Depreciation expense is included in the direct expenses of each function. Interest on
long-term debt is considered an indirect expense and is reported separately on the
Statement of Activities.
D. CASH AND INVESTMENTS
The City’s cash and cash equivalents are considered to be deposits and cash on hand for
purposes of the cash flow statement.
Cash balances from all funds are pooled together and invested to the maximum extent at
favorable rates. This also allows certain funds to generate a temporary cash overdraft.
Interest earned is allocated as determined by the Investment Advisory Committee. The
City provides temporary advances to funds that have insufficient cash balances by
means of an advance from another fund shown as interfund receivables in the advancing
fund, and an interfund payable in the fund with the deficit, until adequate resources are
received. These interfund balances are eliminated on the government-wide financial
statements.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
37
Investments are generally stated at fair value, except for investments in 2a7-like external
investment pools, which are stated at amortized cost. 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,
2011 are planned to be eliminated in 2012. Interfund receivables and payables at
December 31, 2011 that are not expected to be eliminated in 2012 are classified as
“Advances to/from other funds”. Any residual balances outstanding between the
governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances.”
Property taxes and special assessments receivables have been reported net of estimated
uncollectible accounts. Because utility bills are considered liens on property, no
estimated uncollectible amounts are established. Uncollectible amounts are not material
for other receivables and have not been reported.
F. REVENUE RECOGNITION
1. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in
December (levy/assessment date) of each year for collection in the following
year. The County is responsible for billing and collecting all property taxes for
itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and
October 15 of each calendar year. Personal property taxes are payable by
taxpayers on February 28 and June 30 of each year. These taxes are collected
by the County and remitted to the City on or before July 7 and December 2 of the
same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes
by property owners. The County possesses this authority.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which the taxes were
levied. Uncollectible property taxes are not material and have not been reported.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
38
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
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
39
G. INVENTORIES, PREPAID ITEMS AND DEFERRED CHARGES
Inventories of the proprietary funds are stated at cost and are recorded as expenses
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, buildings, improvements, equipment, parks,
infrastructure assets (roads, bridges, sidewalks, and similar items), and intangible assets
such as easements, 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.
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 15 - 50 years
Buildings and structures 15 - 40 years
Furniture and office equipment 5 - 10 years
Vehicles and equipment 3 - 20 years
Parks 5 - 100 years
Utility infrastructure 20 - 50 years
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
40
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.
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. 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.
L. FUND BALANCE CLASSIFICATION
In the fund financial statements, governmental funds report fund balance in classifications
that disclose constraints for which amounts in those funds can be spent. These
classifications are as follows:
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
41
Nonspendable – Consists of amounts that are not in spendable form, such as
prepaid items, inventory, and other long-term assets.
Restricted – Consists of amounts related to externally imposed constraints
established by creditors, grantors, or contributors; or constraints imposed by state
statutory provisions.
Committed – Consists of internally imposed constraints that are established by
resolution of the City Council. Those committed amounts cannot be used for any
other purpose unless the City Council removes or changes the specified use by
taking the same type of action it employed to previously commit those amounts.
Assigned – Consists of internally imposed constraints. These constraints consist of
amounts intended to be used by the City for specific purposes but do not meet the
criteria to be classified as restricted or committed. In the general fund, assigned
amounts represent intended uses established by the City Council.
Unassigned – The residual classification for the general fund which also reflects
negative residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s
policy to first use restricted resources, and then use unrestricted resources as they are
needed.
When committed, assigned, or unassigned resources are available for use, it is the City’s
policy to use resources in the following order: 1) committed, 2) assigned, and 3)
unassigned.
M. NET ASSETS
In the government-wide financial statements, net assets represent the difference between
assets and liabilities. Net assets are displayed in three components:
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.
Restricted net assets – Consists of net assets restricted when there are limitations
imposed on their use through external restrictions imposed by creditors, grantors, or
laws or regulations of other governments.
Unrestricted net assets – All other net assets that do not meet the definition of
“restricted” or “invested in capital assets, net of related debt.”
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, 2011
42
O. CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2011, the City has implemented GASB statement No.
54, “Fund Balance Reporting and Governmental Fund Type Definitions.” The objective of
this statement is to enhance the usefulness of fund balance information by providing
clearer fund balance classifications that can be more consistently applied and by
clarifying the existing governmental fund type definitions. This statement establishes fund
balance classifications that comprise a hierarchy based primarily on the extent to which a
government is bound to observe constraints imposed upon the use of the resources
reported in governmental funds.
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 63,600,000$
Plus: issuance premium 987,901
Less: issuance discount (264,012)
Less: deferred charges (929,350)
Accrued interest payable 926,455
OPEB obligation 907,565
Compensated absences 3,827,674
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets -
governmental activities69,056,233$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
43
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 and investments in joint
ventures as expenditures. However, in the statement of activities the cost of those
assets and investments are allocated over their estimated useful lives and reported
as depreciation expense.” The details of this difference are as follows:
Capital outlay 12,968,672$
Investment in joint venture 132,000
Depreciation expense (6,223,629)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental funds6,877,043$
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 permanent improvement revolving bonds3,320,000$
Less deferred charges(18,688)
Plus premiums108,097
Principal repayments:
Tax increment debt(840,000)
General obligation debt(2,100,000)
Permanent improvement revolving debt(1,330,000)
Public project revenue debt(210,000)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities(1,070,591)$
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
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
44
therefore are not reported as expenditures in governmental funds.” The details of this
difference are as follows:
OPEB obligation (187,879)$
Compensated absences (182,681)
Accrued interest (49,993)
Amortization of deferred charges (99,567)
Amortization of bond discounts and premiums 69,570
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net assets of governmental activities(450,550)$
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits91,017$
Cash on hand19,485
Investments71,041,359
71,151,861$
Cash and investments are presented in the financial statements as follows:
Cash and cash equivalents - Statement of Net Assets52,464$
Investments - Statement of Net Assets62,872,080
Restricted investments - Statement of Net Assets7,859,279
Cash and investments - Statement of Fiduciary Net Assets368,038
71,151,861$
The City had restricted investments of $7,859,279 as of December 31, 2011 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, 2011
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 $91,017 while the
balance on the bank records was $1,115,747. At December 31, 2011, all
deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
46
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 5 to 10 10 +Total
U.S. TreasuriesAA+/AaaS&P/Mdy's -$ -$ 464,704$ 653,780$ 1,118,484$
GNMA AA+/AaaS&P/Mdy's - - - 91,453 91,453
SBA NotesAA+/AaaS&P/Mdy's - 190,735 112,094 - 302,829
SBA Notes N/RN/A - 82,114 75,106 189,833 347,053
U.S. AgenciesAA+/AaaS&P/Mdy's12,490,760 16,289,017 1,275,851 3,041,590 33,097,218
Municipals N/RN/A1,400,000 - - - 1,400,000
Municipals AAAS&P102,697 - - - 102,697
MunicipalsAAA/AaaS&P/Mdy's 513,290 - - - 513,290
MunicipalsAA/Aa1S&P/Mdy's153,797 - - 2,595,000 2,748,797
Municipals Aa1Mdy's101,549 - - - 101,549
Municipals AaaMdy's206,081 - - - 206,081
MunicipalsAA+/AaaS&P/Mdy's358,044 78,563 89,990 - 526,597
MunicipalsAA+/Aa1S&P/Mdy's101,330 525,479 - - 626,809
Municipals Aa3Mdy's - 214,288 - - 214,288
MunicipalsAA/Aa2S&P/Mdy's - 1,032,100 - - 1,032,100
MunicipalsAA-/Aa3S&P/Mdy's - 511,445 - - 511,445
Commercial -
paper A1+S&P4,535,950 - - - 4,535,950
Negotiable CD'sN/RN/A11,959,285 978,190 - - 12,937,475
31,922,783$ 19,901,931$ 2,017,745$ 6,571,656$ 60,414,115
Money Market*AAAS&P5,736,135
4M Fund*N/RN/A4,891,109
Total investments 71,041,359$
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 external investment pool not registered with the Securities Exchange Commission
(SEC) that follows the same regulatory rules of the SEC under rule 2a7. The City’s
investment in the 4M Fund is measured at the net asset value per share provided by the
pool, which is based on an amortized cost method that approximates fair value.
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
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
47
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 $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 16% and 29% in securities issued by FHLB and FNMA, respectively.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
48
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2011 is as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land15,981,364$ -$ -$ 15,981,364$
Easements- 111,000 - 111,000
Construction in progress25,181,400 11,325,347 (3,200,693) 33,306,054
Total capital assets not being depreciated41,162,764 11,436,347 (3,200,693) 49,398,418
Capital assets being depreciated:
Land improvements22,550,059 - - 22,550,059
Buildings and structures41,284,999 16,046 - 41,301,045
Furniture and office equipment3,590,578 35,246 - 3,625,824
Vehicles and equipment13,953,945 1,578,225 (945,099) 14,587,071
Infrastructure78,173,201 2,884,797 (452,033) 80,605,965
Parks15,349,999 218,704 (181,814) 15,386,889
Total capital assets being depreciated174,902,781 4,733,018 (1,578,946) 178,056,853
Less accumulated depreciation for:
Land improvements(13,116,499) (784,866) - (13,901,365)
Buildings and structures(11,888,134) (1,279,949) - (13,168,083)
Furniture and office equipment(1,617,727) (310,276) - (1,928,003)
Vehicles and equipment(8,507,223) (1,149,163) 933,243 (8,723,143)
Infrastructure(46,034,653) (2,118,864) 449,151 (47,704,366)
Parks(6,763,565) (580,511) 118,144 (7,225,932)
Total accumulated depreciation (87,927,801) (6,223,629) 1,500,538 (92,650,892)
Total capital assets being depreciated, net86,974,980 (1,490,611) (78,408) 85,405,961
Governmental activities capital assets, net128,137,744$ 9,945,736$ (3,279,101)$ 134,804,379$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
49
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress5,449,859 14,976,867 (5,644,955) 14,781,771
Total capital assets not being depreciated6,538,824 14,976,867 (5,644,955) 15,870,736
Capital assets being depreciated:
Land improvements & golf course8,353,376 100,163 - 8,453,539
Buildings and structures16,424,628 2,795,043 (14,950) 19,204,721
Furniture and office equipment153,303 - - 153,303
Vehicles and equipment6,064,738 215,080 (155,347) 6,124,471
Utility infrastructure83,256,076 2,980,084 - 86,236,160
Lease property capital lease468,580 - - 468,580
Total capital assets being depreciated 114,720,701 6,090,370 (170,297) 120,640,774
Less accumulated depreciation for:
Land improvements & golf course(4,944,623) (316,231) - (5,260,854)
Buildings and structures(10,815,771) (637,328) 5,985 (11,447,114)
Furniture and office equipment(121,375) (5,117) - (126,492)
Vehicles and equipment(3,494,984) (470,247) 148,213 (3,817,018)
Utility infrastructure(29,769,716) (2,147,540) - (31,917,256)
Lease property capital lease(468,580) - - (468,580)
Total accumulated depreciation(49,615,049) (3,576,463) 154,198 (53,037,314)
Total capital assets being depreciated, net65,105,652 2,513,907 (16,099) 67,603,460
Business-type activities capital assets, net71,644,476$ 17,490,774$ (5,661,054)$ 83,474,196$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
50
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government542,513$
Public safety986,576
Public works2,846,773
Parks1,847,767
Total depreciation expense - governmental activities6,223,629$
Business-type activities:
Utilities2,319,927$
Liquor67,398
Aquatic Center194,456
Golf Course412,683
Arena350,633
Art Center24,661
Edinborough Park160,200
Centennial Lakes46,505
Total depreciation expense - business-type activities3,576,463$
CONSTRUCTION COMMITMENTS
At December 31, 2011, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
ContractRemaining
Project #Project DescriptionAmountCommitment
10-3 EngW 70th Street2,874,482$ 163,197$
11-7 EngW 44th Street2,368,005 107,535
11-5 EngMinnehaha Woods4,279,528 188,284
VariousEnergy Efficiency Upgrades701,098 2,672
11-2 PKFlowrider412,700 157,700
10-13 EngGleason Water Tower449,000 144,700
11-3 PWRaw Water Well #2 to WTP #6919,219 671,676
11-1 PWNew Treatment Plant #65,896,179 1,496,937
2,932,701$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
51
Note 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2011: tax increment bonds,
general obligation bonds, permanent 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 solely from special assessments with any
deficiency to be provided for by general property taxes. 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 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, 2011, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/11
Tax Increment Bonds:
Tax Increment Bonds, Series 2002B 3.00%8/5/20022/1/20121,400,000$ 1,400,000$
Tax Increment Refunding Bonds, Series 2005D 3.00-3.40%7/19/20052/1/20133,505,000 1,080,000
Total Tax Increment Bonds 4,905,000 2,480,000
General Obligation Bonds:
General Obligation - Park & Recreation Refunding, 2005A3.50-4.00%7/19/20052/1/20175,375,000 3,195,000
General Obligation - Capital Improvement Plan, 2007A4.00-4.25%5/24/20072/1/20285,865,000 5,255,000
General Obligation - Capital Improvement Plan, 2009A3.00-4.40%4/29/20092/1/203014,000,000 13,490,000
General Obligation - Equipment Certificates, 2009B2.00-3.00%4/29/20091/1/2012230,000 80,000
General Obligation - Capital Improvement Plan, 2010A2.00-4.00%11/18/20102/1/20218,285,000 7,530,000
General Obligation - Equipment Certificates, 2010B 2.00%11/18/20102/1/2013230,000 150,000
Total General Obligation Bonds33,985,000 29,700,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2005E3.00-3.75%9/13/20052/1/20161,460,000 695,000
Permanent Improvement Revolving, 2007C3.60-4.00%5/24/20072/1/20195,870,000 4,840,000
Permanent Improvement Revolving, 2008B 3.00-4.00%8/28/20082/1/20207,755,000 7,100,000
Permanent Improvement Revolving, 2010B 2.00-3.00%11/18/20102/1/20222,305,000 2,305,000
Permanent Improvement Revolving, 2011A 2.00-3.00%10/27/20112/1/20233,320,000 3,320,000
Total PIR Bonds 20,710,000 18,260,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.50-4.13%9/13/20055/1/20265,425,000 4,440,000
Public Project Revenue, Series 2009A2.10-4.55%11/24/20092/1/20302,595,000 2,595,000
Public Project Revenue, Series 2009B 1.95-5.80%11/24/20092/1/20306,125,000 6,125,000
Total Public Project Revenue Bonds14,145,000 13,160,000
Total bonded indebtedness - governmental activities73,745,000$ 63,600,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
52
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/11
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00-3.00%4/29/20091/1/20132,010,000$ 1,190,000$
Recreational Facility Bonds, Series 2009C2.00-4.00%12/10/20092/1/20302,440,000 2,360,000
Utility Revenue Bonds, Series 2003C1.10-3.55%3/1/20032/1/20133,200,000 730,000
Utility Revenue Bonds, Series 2007B4.00%5/24/20072/1/20178,210,000 5,250,000
Utility Revenue Bonds, Series 2008A3.00-4.25%8/28/20082/1/201913,985,000 11,090,000
Utility Revenue Bonds, Series 2011A2.00-3.00%10/27/20112/1/202211,230,000 11,230,000
Total Revenue Bonds 41,075,000 31,850,000
Total bonded indebtedness - business-type activities41,075,000$ 31,850,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2012 1,930,000$ 48,445$ 2,020,000$ 1,097,868$ 1,375,000$ 557,514$
2013 550,000 9,350 2,000,000 1,030,105 1,625,000 527,869
2014 - - 1,985,000 957,899 1,970,000 471,581
2015 - - 2,080,000 882,868 2,025,000 408,772
2016 - - 2,145,000 804,168 2,090,000 342,931
2017-2021 - - 9,390,000 2,934,767 8,190,000 730,523
2022-2026 - - 5,595,000 1,550,449 985,000 25,875
2027-2031 - - 4,485,000 363,109 - -
Total2,480,000$ 57,795$ 29,700,000$ 9,621,233$ 18,260,000$ 3,065,065$
Principal Interest Principal Interest
2012 345,000$ 565,388$ 2,880,000$ 916,990$
2013 595,000 551,251 3,950,000 874,136
2014 615,000 532,811 3,380,000 763,275
2015 630,000 512,211 3,480,000 654,500
2016 650,000 489,524 3,605,000 537,963
2017-2021 3,590,000 2,034,566 12,005,000 1,202,145
2022-2026 4,340,000 1,163,288 1,920,000 212,725
2027-2031 2,395,000 263,913 630,000 51,400
Total13,160,000$ 6,112,952$ 31,850,000$ 5,213,134$
BondsRevenue Bonds
Revolving Bonds
Year Ending
December 31
Year Ending
December 31
Increment Bonds
Governmental Activities
General Public ImprovementTax
Public Project Revenue
Business-type ActivitiesGovernmental Activities
Obligation Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
53
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2011, was as follows:
Beginning EndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment3,320,000$ -$ (840,000)$ 2,480,000$ 1,930,000$
General obligation 31,800,000 - (2,100,000) 29,700,000 2,020,000
PIR 16,270,000 3,320,000 (1,330,000) 18,260,000 1,375,000
Public project revenue13,370,000 - (210,000) 13,160,000 345,000
Less deferred amounts:
Discount on bonds (292,182) - 28,170 (264,012) -
Premiums 977,544 108,097 (97,740) 987,901 -
Total bonds payable65,445,362 3,428,097 (4,549,570) 64,323,889 5,670,000
Compensated absences3,644,993 1,931,651 (1,748,970) 3,827,674 1,531,070
Governmental activity
Long-term liabilities69,090,355$ 5,359,748$ (6,298,540)$ 68,151,563$ 7,201,070$
Business-type activities:
Bonds payable:
Revenue bonds23,375,000$ 11,230,000$ (2,755,000)$ 31,850,000$ 2,880,000$
Less deferred amounts:
Discount on bonds (9,972) - 3,699 (6,273) -
Premiums 200,732 360,448 (36,080) 525,100 -
Total bonds payable23,565,760 11,590,448 (2,787,381) 32,368,827 2,880,000
Compensated absences 978,085 226,460 (353,682) 850,863 340,344
Business-type activity
Long-term liabilities24,543,845$ 11,816,908$ (3,141,063)$ 33,219,690$ 3,220,344$
For governmental activities, compensated absences are generally liquidated by the general
fund.
During 2011 the City issued $14,550,000 of General Obligation bonds, Series 2011A to
finance various street and utility infrastructure improvement projects. The City anticipates that
utility revenues and special assessments to benefited properties will be sufficient to pay
future debt service on this issue.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
54
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of Total RemainingPrincipalPledged
DebtTerm ofPrincipaland InterestRevenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009B Recreational Facility BondsPool improvementPool100%2009-2017638,250$ 140,950$ 913,383$
2009B Recreational Facility BondsGolf course improvementGolf100%2009-2013607,150 294,700 3,281,225
2009C Recreational Facility BondsArena improvementsArena100%2010-20303,306,600 164,400 1,315,435
2003C Utility Revenue BondsUtility infrastructureUtility100%2003-2013755,913 376,248 15,871,102
2007B Utility Revenue BondsUtility infrastructureUtility100%2007-20175,904,000 985,200 15,871,102
2008A Utility Revenue BondsUtility infrastructureUtility100%2008-201912,942,181 1,601,838 15,871,102
2011A Utility Revenue BondsUtility infrastructureUtility100%2012-202212,909,039 - 15,871,102
Revenue PledgedCurrent Year
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 2011 is
computed as follows:
December 31, 2011
Market Value (after fiscal disparities)9,431,940,900$
Debt Limit (3% of Market Value)282,958,227$
Amount of debt applicable to debt limit:
Total bonded debt95,450,000$
Less:
Tax increment bonds(2,480,000)
Public improvement revolving bonds(18,260,000)
Revenue bonds(31,850,000)
Total debt applicable to debt limit42,860,000$
Legal debt margin240,098,227$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
55
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 General Employees Retirement Fund (GERF) 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.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated
Plan members are covered by Social Security and Basic Plan members are not. All new
members must participate in the Coordinated Plan. All police officers, firefighters and
peace officers who qualify for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits
to survivors upon death of eligible members. Benefits are established by State Statute,
and vest after three years of credited service. The defined retirement benefits are based
on a member’s highest average salary for any five successive years of allowable service,
age, and years of credit at termination of service.
Two methods are used to compute benefits for PERA’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 GERF 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
56
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 GERF 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.
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.
GERF Basic Plan members and Coordinated Plan members were required to contribute
9.1% and 6.25%, respectively, of their covered salary in 2011. PEPFF members were
required to contribute 9.6% of their covered salary in 2011. The City of Edina is required
to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan
members, 7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The
City’s contributions to the Public Employees Retirement Fund for the years ending
December 31, 2011, 2010, and 2009 were $1,000,753, $951,791, and $930,938,
respectively. The City’s contributions to the Public Employees Police and Fire Fund for
the years ending December 31, 2011, 2010, and 2009 were $1,024,566, $920,988, and
$941,561, 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
57
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.
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.
Historically the City has chosen pay-as-you-go financing for OPEB, liquidated by all funds
that employ full-time employees on a pro-rata basis.
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 314,628$
Interest on net OPEB obligation 36,721
Adjustment to annual required contribution (29,559)
Annual OPEB cost (expense)321,790
Contributions made (110,471)
Increase in net OPEB obligation 211,319
Net OPEB obligation - beginning of year 816,026
Net OPEB obligation - end of year 1,027,345$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for the past four years are as follows:
Percentage of
Fiscal AnnualEmployerAnnual OPEBNet OPEB
Year Ended OPEB Cost Contribution Cost Contributed Obligation
December 31, 2009443,317$ 167,209$ 37.7%583,612$
December 31, 2010325,401 92,987 28.6%816,026
December 31, 2011321,790 110,471 34.3%1,027,345
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
58
D. Funded Status and Funding Progress
As of January 1, 2010, the most recent actuarial valuation date, the plan was zero
percent funded. The actuarial accrued liability for benefits was $2,966,250, and the
actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability
(UAAL) of $2,966,250. The covered payroll (annual payroll of active employees covered
by the plan) was $17,786,616, and the ratio of the UAAL to the covered payroll was 16.7
percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability occurrence of events far into the future.
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, 2010 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 9.0 percent initially, reduced by decrements to an ultimate
rate of 5.0 percent after twelve years. The UAAL is being amortized as a level percentage
of payroll. The remaining amortization period at January 1, 2010 was 30 years on a
“closed” basis.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
59
Note 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of due from other funds and due to other funds account balances as of
December 31, 2011, is as follows:
Payable Fund Amount
General HRA 64,899$
Police Special Revenue Debt Service 43,277
General 346,100
Braemar Memorial Special RevenueCDBG 82,000
Liquor Construction 593,597
Utility 615,113
Aquatic Center Debt Service 277,115
Golf Course 84,247
Arena Debt Service 20,868
Art Center Utility 129,731
Centennial Lakes Utility 6,703
Total 2,263,650$
Receivable Fund
The composition of advances to other funds and advances from other funds account balances as
of December 31, 2011, is as follows:
Payable Fund Amount
Aquatic Center Golf Course 1,000,000$
Total 1,000,000$
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, 2011
60
Debt Nonmajor
General Service Construction Golf Course Business-type Total
Transfer out:
General Fund-$ 1,328,530$ 1,155,000$ -$ -$ 2,483,530$
HRA Fund- 934,359 - - - 934,359
Construction Fund- - - - 320,894 320,894
Communications Fund1,182,680 - - - - 1,182,680
Utilities Fund- - 100,000 - - 100,000
Liquor Fund765,100 - 150,000 100,000 240,000 1,255,100
Nonmajor Business-type- - - - 4,129,693 4,129,693
1,947,780$ 2,262,889$ 1,405,000$ 100,000$ 4,690,587$ 10,406,256$
Transfer In:
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit
from services provided by another fund. Some of the City’s interfund transfers fall under that
category. Non-routine transfers include the following:
1. The liquor fund transferred $765,100, $100,000, $160,000 and $80,000 to the general
fund, golf course fund, art center, and arena funds, respectively, to subsidize operations.
2. The construction fund transferred $15,000, $136,962 and $168,932 to the art center,
arena, and Edinborough/Centennial funds, respectively, to subsidize capital
improvements to those facilities.
3. The HRA fund transferred $934,359 of tax increment revenues to the debt service fund to
pay principal and interest on outstanding tax increment debt.
4. The utilities fund and liquor fund transferred $100,000 and $150,000, respectively, to the
construction fund to fund the capital improvement program, as planned in the 2011
budget.
5. The general fund transferred $1,328,530 to the debt service fund; $950,000 to call a
portion of the Series 2009A G.O. Bond and $378,530 to fund a portion of 2012 public
works debt.
6. The general fund transferred $1,155,000 of the 2010 unreserved and undesignated fund
balance to the construction fund. $700,000 to fund various projects within the
construction fund, $155,000 to prepay the special assessment for Pamela Park, and
$300,000 for human resources and technology improvements.
7. The communications fund transferred $1,182,680 to the general fund as a result of the
funds being consolidated at year end 2011.
8. The Edinborough/Centennial lakes fund transferred $2,636,318 and $1,493,375 to the
Edinborough and Centennial lakes funds respectively due to the creation of two new
funds to account for each facility individually.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
61
Note 10 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1202 (Grandview Commercial Area) is a redevelopment district established in
1984 pursuant to Minnesota Statutes with a termination date of 2010. Although the main district is
decertified, the City will continue to receive increments from a sub-district until the outstanding
debt is retired. The debt is scheduled to mature in 2012.
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a
redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination date
of 2016.
District number 1207 (70th and Cahill Economic Development District) is an economic district
established in 1990 pursuant to Minnesota Statutes with a decertification date of 2000. Increment
previously collected is available for expenditures within the larger development district that
includes the Wooddale – Valley View commercial area. Tax capacity and debt for this district is
not included in the following schedule as county reports no longer indicate captured tax capacity
for this district and no debt is outstanding.
The following table reflects values as of December 31, 2011:
TIF #1202TIF #1203Total
Original tax capacity22,872$ 229,691$ 252,563$
Current tax capacity913,632 3,406,842 4,320,474
Tax capacity change890,760 3,177,151 4,067,911
Captured tax capacity value:
Retained captured tax capacity 890,760$ 3,177,151$ 4,067,911$
Total bonds issued
(general obligation)9,637,555$ 35,894,724$ 45,532,279$
Amounts redeemed 8,237,555 34,814,724 43,052,279
Outstanding bonds at
December 31, 2011 1,400,000$ 1,080,000$ 2,480,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
62
Note 11 CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
Worker’s compensation insurance is provided through the League of Minnesota Cities
Insurance Trust (LMCIT). The City has a $10,000 deductible per occurrence, with a
$500,000 annual maximum.
Automobile and general liability coverage is provided through an insurance company.
The City pays an annual premium for this coverage and all claims are paid from the plan
up to the annual maximum of $600,000. The City is not subject to a deductible for
automobile or general liability coverage.
Property coverage is also provided by an insurance company. The City pays an annual
premium for this coverage, and all claims are paid for by the plan. The City has $2,500 -
$25,000 deductibles per occurrence depending on claim type, with an annual maximum
of $83,446,936.
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 2011.
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, 2011.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
63
D. TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of
the State Auditor (OSA). Any disallowed claims or misuse of tax increments could
become a liability of the applicable fund. Management is not aware of any instances of
noncompliance which would have a material effect on the financial statements.
Note 12 CONDUIT DEBT OBLIGATION
As of December 31, 2011, the City of Edina had 4 series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $30,920,000. 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 equity
interest in the capital assets of the PSTF was $1,584,465. 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, 2011,
the City paid a total of $40,516 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, 2011,
the City paid a total of $11,383 in membership fees to the I-494 Corridor Commission.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
64
Note 15 FUND BALANCES
During 2011, the City implemented the requirements of a new accounting pronouncement, GASB
Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions.”
A. Classifications
At December 31, 2011, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund Debt Service Construction
Nonmajor
Funds Total
Nonspendable
Prepaid items10,871$ -$ -$ -$ -$ 10,871$
Restricted
Park dedication 178,295 - - - - 178,295
Tax increments - 16,190,129 - - - 16,190,129
Debt service - - 8,068,183 - - 8,068,183
Unspent bond proceeds - - - 2,087,548 - 2,087,548
Forfeitures - - - - 526,409 526,409
Grant funds - - - - 128,983 128,983
Donations - - - - 333,336 333,336
Assigned
Unrealized investment gains8,217 - - - - 8,217
Compensated absences1,531,069 - - - - 1,531,069
Construction commitments - - - 461,688 - 461,688
Special projects - - - 714,243 - 714,243
Equipment - - - 2,321,050 - 2,321,050
Construction - - - 4,601,954 - 4,601,954
Unassigned 11,744,764 - - - - 11,744,764
13,473,216$ 16,190,129$ 8,068,183$ 10,186,483$ 988,728$ 48,906,739$
B. Unassigned Fund Balance Policy
The City Council has formally adopted a fund balance policy regarding the desired range for
unassigned fund balance for the general fund. The policy establishes a goal for unassigned
general fund balance of 42%-47% of the subsequent year’s budgeted property tax revenue.
As of December 31, the City has $11,744,764 of unassigned fund balance in the general
fund, or 54.6% of 2012 budgeted property tax revenue. This amount is $1,642,395 above the
goal range identified in the policy.
Note 16 SUBSEQUENT EVENT
The Braemar Golf Dome collapsed on February 10, 2012 as the result of a fire. The fire and
collapse resulted in a total loss according to the City’s insurance carrier. The City believes the
incident will be fully covered by insurance, including the physical building and lost revenue.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2011
Variance with
2011Final Budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
General property taxes:
Current20,677,000$ 20,677,000$ 20,589,087$ (87,913)$
Penalties and interest12,000 12,000 18,558 6,558
Total general property taxes20,689,000 20,689,000 20,607,645 (81,355)
Licenses and permits:2,309,490 2,309,490 2,688,324 378,834
Intergovernmental:
Federal:36,000 36,000 68,241 32,241
State:
Municipal state aid195,000 195,000 195,000 -
Other51,000 51,000 175,777 124,777
State aid - police 355,000 355,000 330,944 (24,056)
Health programs120,000 120,000 148,764 28,764
Total intergovernmental757,000 757,000 918,726 161,726
Charges for services:
City Clerk6,000 6,000 9,630 3,630
Planning Department27,500 27,500 33,125 5,625
Housing Foundation Contract26,000 26,000 29,921 3,921
HRA Services22,000 22,000 20,230 (1,770)
Police Department200,000 200,000 360,907 160,907
Fire Department30,000 30,000 26,549 (3,451)
Ambulance fees1,545,000 1,545,000 1,692,232 147,232
Health Department7,700 7,700 10,852 3,152
Building Department25,000 25,000 3,462 (21,538)
Engineering 180,000 180,000 265,493 85,493
Park Registration 98,000 98,000 104,324 6,324
Senior Center 98,000 98,000 84,616 (13,384)
Other fees 4,000 4,000 1,921 (2,079)
50th & France Assessment 69,000 69,000 69,000 -
Charges to other funds 395,604 395,604 395,604 -
Total charges for services 2,733,804 2,733,804 3,107,866 374,062
Fines and forfeits 975,000 975,000 1,128,328 153,328
Miscellaneous:
Rental of property 325,000 325,000 538,269 213,269
Investment income 115,919 115,919 59,849 (56,070)
Donations 12,000 12,000 38,815 26,815
Other 6,000 6,000 - (6,000)
Total miscellaneous 458,919 458,919 636,933 178,014
Total revenues 27,923,213 27,923,213 29,087,822 1,164,609
Budgeted Amounts
65
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2011
Variance with
2011Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Expenditures:
General government:
Mayor and Council:
Current:
Personal services48,106$ 48,106$ 45,813$ 2,293$
Contractual services12,100 12,100 13,163 (1,063)
Commodities1,225 1,225 2,076 (851)
Central services28,008 28,008 25,452 2,556
Total mayor and council89,439 89,439 86,504 2,935
Administration:
Current:
Personal services912,370 912,370 858,794 53,576
Contractual services162,000 162,000 209,726 (47,726)
Commodities3,100 3,100 2,320 780
Central services75,108 75,108 68,362 6,746
Total administration1,152,578 1,152,578 1,139,202 13,376
Planning:
Current:
Personal services385,053 385,053 380,416 4,637
Contractual services36,950 36,950 39,254 (2,304)
Commodities4,500 4,500 1,645 2,855
Central services51,288 51,288 46,555 4,733
Total planning477,791 477,791 467,870 9,921
Finance:
Current:
Personal services526,618 526,618 488,556 38,062
Contractual services105,650 105,650 99,993 5,657
Commodities 3,400 3,400 4,423 (1,023)
Central services 59,976 59,976 54,433 5,543
Total finance 695,644 695,644 647,405 48,239
Election:
Current:
Personal services 153,462 153,462 102,605 50,857
Contractual services 23,300 23,300 16,679 6,621
Commodities 17,000 17,000 10,984 6,016
Central services 15,948 15,948 14,460 1,488
Total election 209,710 209,710 144,728 64,982
Assessing:
Current:
Personal services 673,269 673,269 603,369 69,900
Contractual services 112,100 112,100 93,335 18,765
Commodities 2,900 2,900 1,101 1,799
Central services 64,920 64,920 59,482 5,438
Total assessing 853,189 853,189 757,287 95,902
Legal and court services:
Current:
Contractual services 388,000 388,000 343,594 44,406
Budgeted Amounts
66
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2011
Variance with
2011Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Commissions and projects:
Current:
Personal services135,000$ 135,000$ 330,850$ (195,850)$
Contractual services460,848 460,848 265,453 195,395
Commodities2,000 2,000 6,096 (4,096)
Total commissions and projects597,848 597,848 602,399 (4,551)
Total general government4,464,199 4,464,199 4,188,989 275,210
Public safety:
Police protection:
Current:
Personal services6,432,673 6,432,673 6,669,470 (236,797)
Contractual services407,357 407,357 385,262 22,095
Commodities68,524 68,524 69,731 (1,207)
Central services1,016,220 1,016,220 963,617 52,603
Total police protection7,924,774 7,924,774 8,088,080 (163,306)
Fire protection:
Current:
Personal services3,635,550 3,635,550 3,722,966 (87,416)
Contractual services334,700 334,700 384,217 (49,517)
Commodities168,800 168,800 197,604 (28,804)
Central services328,164 328,164 314,506 13,658
Total fire protection4,467,214 4,467,214 4,619,293 (152,079)
Civil defense:
Current:
Personal services37,347 37,347 37,806 (459)
Contractual services10,227 10,227 9,666 561
Commodities8,956 8,956 8,804 152
Total civil defense56,530 56,530 56,276 254
Animal Control:
Current:
Personal services 71,833 71,833 73,429 (1,596)
Contractual services 8,592 8,592 13,329 (4,737)
Commodities 2,448 2,448 2,545 (97)
Central services 9,108 9,108 8,682 426
Total animal control 91,981 91,981 97,985 (6,004)
Public health:
Current:
Personal services 279,289 279,289 281,236 (1,947)
Contractual services 198,980 198,980 187,446 11,534
Commodities 2,325 2,325 225 2,100
Central services 31,008 31,008 28,504 2,504
Total public health 511,602 511,602 497,411 14,191
67
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2011
Variance with
2011Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Inspections:
Current:
Personal services904,287$ 904,287$ 915,071$ (10,784)$
Contractual services75,989 75,989 112,875 (36,886)
Commodities8,200 8,200 9,374 (1,174)
Central services101,016 101,016 93,752 7,264
Total inspections1,089,492 1,089,492 1,131,072 (41,580)
Total public safety14,141,593 14,141,593 14,490,117 (348,524)
Public works:
Administration:
Current:
Personal services196,742 196,742 167,593 29,149
Contractual services6,800 6,800 5,747 1,053
Commodities500 500 287 213
Central services24,912 24,912 23,015 1,897
Total administration228,954 228,954 196,642 32,312
Engineering:
Current:
Personal services860,555 860,555 889,220 (28,665)
Contractual services74,250 74,250 30,786 43,464
Commodities16,700 16,700 10,599 6,101
Central services100,740 100,740 96,234 4,506
Total engineering1,052,245 1,052,245 1,026,839 25,406
Street maintenance:
Current:
Personal services2,272,327 2,272,327 1,954,833 317,494
Contractual services757,000 757,000 737,307 19,693
Commodities1,001,650 1,001,650 911,674 89,976
Central services 913,932 913,932 928,988 (15,056)
Total street maintenance 4,944,909 4,944,909 4,532,802 412,107
Total public works 6,226,108 6,226,108 5,756,283 469,825
68
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2011
Variance with
2011Final Budget -
ActualUnder
OriginalFinalAmounts(Over)
Budgeted Amounts
Parks:
Administration:
Current:
Personal services664,931$ 664,931$ 657,592$ 7,339$
Contractual services28,604 28,604 20,434 8,170
Commodities3,045 3,045 2,447 598
Central services82,836 82,836 75,169 7,667
Total administration779,416 779,416 755,642 23,774
Recreation:
Current:
Personal services187,127 187,127 159,843 27,284
Contractual services180,887 180,887 127,526 53,361
Commodities52,688 52,688 41,620 11,068
Total recreation420,702 420,702 328,989 91,713
Maintenance:
Current:
Personal services1,602,414 1,602,414 1,572,392 30,022
Contractual services529,171 529,171 379,545 149,626
Commodities203,602 203,602 163,001 40,601
Central services321,108 321,108 323,108 (2,000)
Total maintenance2,656,295 2,656,295 2,438,046 218,249
Total parks3,856,413 3,856,413 3,522,677 333,736
Total expenditures28,688,313 28,688,313 27,958,066 730,247
Revenues over (under) expenditures(765,100) (765,100) 1,129,756 1,894,856
Other financing sources (uses):
Transfer from other funds765,100 1,752,879 1,947,780 194,901
Transfer to other funds- (2,483,530) (2,483,530) -
Total financing sources (uses)765,100 (730,651) (535,750) 194,901
Net increase (decrease) in fund balance -$ (1,495,751)$ 594,006 2,089,757$
Fund balance - January 1 12,879,210
Fund balance - December 31 13,473,216$
69
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HRA FUND
For The Year Ended December 31, 2011
Variance with
Final budget -
Actual Over
Original Final Amounts(Under)
Revenues:
Tax increment collections 3,972,190$ 3,972,190$ 4,083,345$ 111,155$
Investment income 122,000 122,000 319,825 197,825
Total revenues 4,094,190 4,094,190 4,403,170 308,980
Expenditures:
Personal services 20,771 20,771 20,230 (541)
Contractual services 674,174 674,174 555,966 (118,208)
Capital outlay 4,000,000 4,000,000 27,183 (3,972,817)
Total expenditures 4,694,945 4,694,945 603,379 (4,091,566)
Other financing uses:
Transfers out (934,359) (934,359) (934,359) -
Net increase (decrease) in fund balance(1,535,114)$ (1,535,114)$ 2,865,432 4,400,546$
Fund balance - January 1 13,324,697
Fund balance - December 31 16,190,129$
Budgeted Amounts
70
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2011
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%
January 1, 20102,966,250$ -$ 2,966,250$ 0.0%17,786,616$ 16.7%
71
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2011
72
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, HRA, debt service, construction, CDBG, communications,
police special revenue, and Braemar memorial funds 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, 2011
73
Note B EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund budget is legally adopted on a basis consistent with accounting principles
generally accepted in the United States of America. The legal level of budgetary control is at the
department level for the General Fund. The following is a listing of General Fund departments whose
expenditures exceed budget appropriations.
Final Over
Budget Actual Budget
General Fund
General Government
Commisions and projects597,848$ 602,399$ 4,551$
Public Safety
Police protection7,924,774 8,088,080 163,306
Fire protection4,467,214 4,619,293 152,079
Animal control91,981 97,985 6,004
Inspections 1,089,492 1,131,072 41,580
Excess expenditures in the commissions and projects department are due to employee severance
payments made during the year and are funded by available general fund balance assigned for
compensated absences.
Excess expenditures in the police protection, fire protection, and animal control departments are due
to labor contracts that were settled after the budget was set for higher than expected amounts. These
expenditures are funded by available general fund balance.
Excess expenditures in the inspections department are due to higher than anticipated permit
applications during the year and are funded by the additional permit revenue received.
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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. The fund was
consolidated into the General Fund on December 31, 2011.
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.
Braemar Memorial Fund - This fund was established to account for funds
donated to the City for the purpose of enhancing the Braemar golf course
with equipment and amenities that might not otherwise be affordable or viewed
as a necessity to the golf course.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
75
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2011
Community Total Nonmajor
Development PoliceBraemarSpecial Revenue
Block Grant Communication Special Revenue Memorial Funds
Assets
Cash and cash equivalents-$ -$ -$ 5,053$ 5,053$
Unrestricted investments- - 244,838 244,782 489,620
Accrued interest receivable - - 468 401 869
Accounts receivable - - - 1,100 1,100
Due from other funds - - 389,377 82,000 471,377
Due from other governments82,000 - 23,781 - 105,781
Total assets82,000$ -$ 658,464$ 333,336$ 1,073,800$
Liabilities and Fund Balance
Liabilities:
Accounts payable-$ -$ 3,072$ -$ 3,072$
Due to other funds 82,000 - - - 82,000
Total liabilities82,000 - 3,072 - 85,072
Fund balance:
Restricted - - 655,392 333,336 988,728
Total fund balance- - 655,392 333,336 988,728
Total liabilities
and fund balance 82,000$ -$ 658,464$ 333,336$ 1,073,800$
76
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2011
CommunityTotal Nonmajor
DevelopmentPoliceBraemarSpecial Revenue
Block Grant Communication Special Revenue Memorial Funds
Revenues:
Franchise fees-$ 722,160$ -$ -$ 722,160$
Intergovernmental108,067 - 63,364 - 171,431
Charges for services - 15,413 - - 15,413
Fines and forfeitures - - 115,098 - 115,098
Investment income - 57,111 944 744 58,799
Other - 44,665 - 28,743 73,408
Total revenues108,067 839,349 179,406 29,487 1,156,309
Expenditures:
Current:
General government108,067 775,532 - - 883,599
Public safety- - 103,973 - 103,973
Parks - - - 6,092 6,092
Total expenditures108,067 775,532 103,973 6,092 993,664
Revenues over
expenditures - 63,817 75,433 23,395 162,645
Other financing uses:
Transfers out - (1,182,680) - - (1,182,680)
Total other financing
uses- (1,182,680) - - (1,182,680)
Net increase (decrease)
in fund balance- (1,118,863) 75,433 23,395 (1,020,035)
Fund balance -
January 1 - 1,118,863 579,959 309,941 2,008,763
Fund balance -
December 31 -$ -$ 655,392$ 333,336$ 988,728$
77
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, 2011
Variance with
Final budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
Intergovernmental161,303$ 161,303$ 108,067$ (53,236)$
Expenditures:
Current:
Contractual services161,303 161,303 108,067 (53,236)
Net increase in fund balance-$ -$ - -$
Fund balance - January 1 -
Fund balance - December 31-$
Budgeted Amounts
78
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - COMMUNICATIONS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
Variance with
Final budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
Franchise fees650,000$ 650,000$ 722,160$ 72,160$
Charges for services- - 15,413 15,413
Investment income24,000 24,000 57,111 33,111
Other66,500 66,500 44,665 (21,835)
Total revenues740,500 740,500 839,349 98,849
Expenditures:
Current:
Personal services367,973 367,973 356,009 (11,964)
Contractual services326,070 326,070 308,795 (17,275)
Commodities38,500 38,500 29,544 (8,956)
Central services61,212 61,212 25,105 (36,107)
Capital outlay14,000 14,000 56,079 42,079
Total expenditures807,755 807,755 775,532 (32,223)
Revenues over
(under) expenditures(67,255) (67,255) 63,817 131,072
Other financing uses:
Transfers out- (987,779) (1,182,680) (194,901)
Net increase in fund balance(67,255)$ (1,055,034)$ (1,118,863) (63,829)$
Fund balance - January 11,118,863
Fund balance - December 31-$
Budgeted Amounts
79
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - POLICE SPECIAL REVENUE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
Variance with
Final budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
Intergovernmental104,760$ 104,760$ 63,364$ (41,396)$
Fines and forfeiture52,103 52,103 115,098 62,995
Investment income600 600 944 344
Total revenues157,463 157,463 179,406 21,943
Expenditures:
Current:
Contractual services86,695 86,695 36,063 (50,632)
Commodities2,133 2,133 28,485 26,352
Capital outlay52,764 52,764 39,425 (13,339)
Total expenditures141,592 141,592 103,973 (37,619)
Net increase in fund balance15,871$ 15,871$ 75,433 59,562$
Fund balance - January 1579,959
Fund balance - December 31655,392$
Budgeted Amounts
80
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - BRAEMAR MEMORIAL
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2011
Variance with
Final budget -
ActualOver
OriginalFinalAmounts(Under)
Revenues:
Investment income300$ 300$ 744$ 444$
Donations3,000 3,000 28,743 25,743
Total revenues3,300 3,300 29,487 26,187
Expenditures:
Current:
Contractual services7,500 7,500 - (7,500)
Commodities- - 251 251
Capital outlay- - 5,841 5,841
Total expenditures7,500 7,500 6,092 (1,408)
Net increase (decrease) in fund balance(4,200)$ (4,200)$ 23,395 27,595$
Fund balance - January 1309,941
Fund balance - December 31333,336$
Budgeted Amounts
81
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82
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. The fund
was discontinued on December 31, 2011 due to the creation of two new funds
to account for each facility individually.
Edinborough Park Fund - This fund was created on December 31, 2011 to
account for activities related to Edinborough Park.
Centennial Lakes Park Fund - This fund was created on December 31, 2011 to
account for activities related to Centennial Lakes Park.
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
83
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR PROPRIETARY FUNDS
December 31, 2011
Edinborough
ParkTotal Nonmajor
ArtCentennial EdinboroughCentennialProprietary
Arena Center Lakes Park Lakes Funds
Assets
Current assets:
Cash and cash equivalents16,093$ -$ -$ 16,571$ 8,468$ 41,132$
Unrestricted investments- - - 1,333,541 1,333,541 2,667,082
Interest receivable- - - 6,483 6,483 12,966
Accounts receivable112,097 - - 5,186 4,066 121,349
Due from other funds20,868 129,731 - - 6,703 157,302
Inventory - 12,325 - - - 12,325
Total current assets 149,058 142,056 - 1,361,781 1,359,261 3,012,156
Noncurrent assets:
Deferred charges25,354 - - - - 25,354
Net capital assets4,431,707 222,688 - 1,409,653 258,360 6,322,408
Total noncurrent assets 4,457,061 222,688 - 1,409,653 258,360 6,347,762
Total assets 4,606,119 364,744 - 2,771,434 1,617,621 9,359,918
Liabilities:
Current liabilities:
Accounts payable40,342 12,578 - 50,015 11,999 114,934
Salaries payable31,040 7,056 - 23,048 23,048 84,192
Accrued interest payable34,833 - - - - 34,833
Due to other governments3,245 740 - 9,309 1,011 14,305
Unearned revenue- 8,095 - 30 10 8,135
Compensated absences payable36,157 1,745 - 17,142 31,328 86,372
Bonds payable - current 100,000 - - - - 100,000
Total current liabilities 245,617 30,214 - 99,544 67,396 442,771
Noncurrent liabilities:
OPEB payable12,301 3,335 - 9,858 9,858 35,352
Compensated absences54,236 2,617 - 25,714 46,992 129,559
Bonds payable, net of
unamortized discounts2,272,301 - - - - 2,272,301
Total noncurrent liabilities2,338,838 5,952 - 35,572 56,850 2,437,212
Total liabilities 2,584,455 36,166 - 135,116 124,246 2,879,983
Net assets:
Invested in capital assets,
net of related debt2,059,406 222,688 - 1,409,653 258,360 3,950,107
Unrestricted(37,742) 105,890 - 1,226,665 1,235,015 2,529,828
Total net assets 2,021,664$ 328,578$ -$ 2,636,318$ 1,493,375$ 6,479,935$
84
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2011
Edinborough
Park Total Nonmajor
ArtCentennial EdinboroughCentennialProprietary
Arena Center Lakes Park Lakes Funds
Operating revenues:
Sales - retail2,000$ 39,706$ -$ -$ -$ 41,706$
Sales - concessions4,183 938 80,435 - - 85,556
Memberships7,324 25,731 54,437 - - 87,492
Admissions112,151 - 654,972 - - 767,123
Building rental1,062,949 - 314,622 - - 1,377,571
Rental of equipment2,407 - 116,823 - - 119,230
Greens fees- - 179,615 - - 179,615
Class registration & other fees124,421 384,968 478,889 - - 988,278
Total operating revenues 1,315,435 451,343 1,879,793 - - 3,646,571
Operating expenses:
Cost of sales and services1,172 21,376 82,305 - - 104,853
Personal services613,222 213,937 1,164,053 - - 1,991,212
Contractual services593,432 276,069 463,522 - - 1,333,023
Commodities89,989 42,966 289,641 - - 422,596
Central Services40,553 36,163 93,062 - - 169,778
Depreciation350,633 24,661 206,705 - - 581,999
Total operating expenses 1,689,001 615,172 2,299,288 - - 4,603,461
Operating loss (373,566) (163,829) (419,495) - - (956,890)
Nonoperating revenues (expenses):
Investment income135 - 191,732 - - 191,867
Donations- 13,537 3,540 - - 17,077
Interest and fiscal charges(83,733) - - - - (83,733)
Amortization of bond discount (722) - - - - (722)
Total nonoperating
revenues (expenses)(84,320) 13,537 195,272 - - 124,489
Income (loss) before transfers(457,886) (150,292) (224,223) - - (832,401)
Transfers:
Transfers in216,962 175,000 168,932 2,636,318 1,493,375 4,690,587
Transfers out- - (4,129,693) - - (4,129,693)
Total transfers 216,962 175,000 (3,960,761) 2,636,318 1,493,375 560,894
Change in net assets (240,924) 24,708 (4,184,984) 2,636,318 1,493,375 (271,507)
Net assets - January 1 2,262,588 303,870 4,184,984 - - 6,751,442
Net assets - December 31 2,021,664$ 328,578$ -$ 2,636,318$ 1,493,375$ 6,479,935$
85
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2011
Edinborough
ParkTotal Nonmajor
ArtCentennial EdinboroughCentennialProprietary
Arena Center Lakes Park Lakes Funds
Cash flows from operating activities:
Receipts from customers and users1,318,184$ 451,576$ 1,829,782$ -$ -$ 3,599,542$
Payment to suppliers(830,406) (377,308) (962,527) - - (2,170,241)
Payment to employees(609,136) (263,021) (1,202,781) - - (2,074,938)
Donations received- 13,537 3,540 - - 17,077
Net cash provided by (used in)
operating activities(121,358) (175,216) (331,986) - - (628,560)
Cash flows from noncapital financing activities:
Transfer from other funds80,000 160,000 - 16,571 15,171 271,742
Transfer to other funds- - (31,742) - - (31,742)
Proceeds from interfund borrowing80,000 140,000 - - - 220,000
Payment of interfund borrowing(20,868) (129,731) (8,000) - (6,703) (165,302)
Net cash provided by noncapital
financing activities139,132 170,269 (39,742) 16,571 8,468 294,698
Cash flows from capital and related financing activities:
Transfer from other funds136,962 15,000 168,932 - - 320,894
Acquisition of capital assets(264,408) (15,681) (197,597) - - (477,686)
Principal paid on bonds(80,000) - - - - (80,000)
Interest paid on bonds(84,400) - - - - (84,400)
Net cash used in capital and
related financing activities(291,846) (681) (28,665) - - (321,192)
Cash flows from investing activities:
Proceeds from sales of investments288,706 - 276,273 - - 564,979
Interest received135 - 123,726 - - 123,861
Net cash flows provided by (used in).
investing activities288,841 - 399,999 - - 688,840
Net increase (decrease) in cash
and cash equivalents14,769 (5,628) (394) 16,571 8,468 33,786
Cash and cash equivalents - January 11,324 5,628 394 - - 7,346
Cash and cash equivalents - December 3116,093$ -$ -$ 16,571$ 8,468$ 41,132$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (373,566)$ (163,829)$ (419,495)$ -$ -$ (956,890)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation350,633 24,661 206,705 - - 581,999
Donations- 13,537 3,540 - - 17,077
Changes in assets and liabilities:
Decrease (increase) in receivables2,749 - (1,734) - - 1,015
Decrease (increase) in inventory- 754 - - - 754
Increase (decrease) in accounts payable(106,869) (1,444) (35,498) - - (143,811)
Increase (decrease) in salaries payable776 (1,687) (3,840) - - (4,751)
Increase (decrease) in due to
other governments1,609 (44) 1,501 - - 3,066
Increase (decrease) in unearned revenue- 233 (48,277) - - (48,044)
Increase (decrease) in OPEB payable2,464 645 3,798 - - 6,907
Increase (decrease) in
compensated absences846 (48,042) (38,686) - - (85,882)
Total adjustments252,208 (11,387) 87,509 - - 328,330
Net cash provided by (used in)
operating activities(121,358)$ (175,216)$ (331,986)$ -$ -$ (628,560)$
Noncash investing activities:
Increase (decrease) in
fair value of investments- - 74,241 - - 74,241
Noncash noncapital financing activities:
Transfer net assets to new fund- - (4,097,951) - - (4,097,951)
Transfer of net assets from old fund- - - 2,619,747 1,478,204 4,097,951
86
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 had
fiduciary responsibilities for from 2009-2011.
FIDUCIARY FUNDS
Agency Funds
87
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88
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2011
BalanceBalance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash 22,689$ -$ -$ 22,689$
Liabilities:
Due to other governmental units 22,689$ -$ -$ 22,689$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash7,552$ 1,517,793$ 1,516,912$ 8,433$
Investments 260,000 610,000 560,000 310,000
Total Assets 267,552$ 2,127,793$ 2,076,912$ 318,433$
Liabilities:
Accounts payable14,025$ 289,731$ 298,418$ 5,338$
Salaries payable5,018 166,559 164,561 7,016
Due to other governmental units 248,509 1,671,503 1,613,933 306,079
Total Liabilities 267,552$ 2,127,793$ 2,076,912$ 318,433$
PAYROLL
Assets:
Cash 30,867$ 15,995,138$ 15,999,089$ 26,916$
Liabilities:
Accounts payable 30,867$ 15,995,138$ 15,999,089$ 26,916$
I-494 CORRIDOR COMMISSION
Assets:
Cash 110,051$ 54,370$ 164,421$ -$
Liabilities:
Due to other governmental units 110,051$ 54,370$ 164,421$ -$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash171,159$ 17,567,301$ 17,680,422$ 58,038$
Investments 260,000 610,000 560,000 310,000
Total Assets 431,159$ 18,177,301$ 18,240,422$ 368,038$
Liabilities:
Accounts payable44,892$ 16,284,869$ 16,297,507$ 32,254$
Salaries payable5,018 166,559 164,561 7,016
Due to other governmental units 381,249 1,725,873 1,778,354 328,768
Total Liabilities 431,159$ 18,177,301$ 18,240,422$ 368,038$
89
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90
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2008 2009 2010 2011 2012
Total tax capacity 120,084,430$ 122,532,149$ 120,816,822$ 113,981,017$ 109,012,566$
Increment valuation (9,771,137) (10,307,195) (4,960,337) (4,043,859) (3,917,958)
Contribution to fiscal
disparities pool (9,358,999) (10,393,526) (10,942,782) (11,039,952) (10,283,433)
Tax capacity used
for rate calculation 100,954,294 101,831,428 104,913,703 98,897,206 94,811,175
Fiscal disparities distribution2,895,523 3,298,549 3,537,906 3,421,345 3,068,256
Adjusted net tax capacity103,849,817$ 105,129,977$ 108,451,609$ 102,318,551$ 97,879,431$
Tax levies:
General fund20,314,404$ 21,202,691$ 20,737,472$ 21,004,000$ 21,604,402$
Equipment- - 940,494 992,072 992,072
Debt service 1,695,827 2,351,030 3,212,757 3,174,308 3,040,890
Total certified tax levies22,010,231 23,553,721 24,890,723 25,170,380 25,637,364
Referendum market value levy595,438 600,212 602,250 615,837 610,862
Total levy22,605,669$ 24,153,933$ 25,492,973$ 25,786,217$ 26,248,226$
Tax capacity rate:
General fund revenue19.563 20.204 20.004 21.548 23.131
Bonds & interest 1.634 2.243 2.968 3.112 3.116
Total tax capacity rate21.197 22.447 22.972 24.660 26.247
Market value rate0.00601 0.00597 0.00606 0.00654 0.00667
91
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2011
Final
InterestMaturityOriginal
RatesDateDateIssue Redeemed
Tax Increment Bonds:
Tax Increment Bonds, Series 2000A4.30 - 4.8009/06/0002/01/112,620,000$ 2,295,000$
Tax Increment Bonds, Series 2002B3.00%08/05/0202/01/121,400,000 -
Tax Increment Refunding Bonds, Series 2005D3.00 - 3.4007/19/0502/01/133,505,000 1,910,000
Total Tax Increment Bonds7,525,000 4,205,000
General Obligation Bonds:
GO Park & Recreation Refunding Bonds,
Series 2005A3.50 - 4.0007/19/0502/01/175,375,000 1,710,000
GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/285,865,000 400,000
GO Capital Improvement Plan, Series 2009A3.00 - 4.4004/29/0902/01/3014,000,000 -
GO Equipment Certificates, Series 2009B2.00 - 3.0004/29/0901/01/12230,000 75,000
GO Capital Improvement Plan, Series 2010A2.00 - 4.0011/18/1002/01/218,285,000 -
GO Equipment Certificates, Series 2010B2.0011/18/1002/01/13230,000 -
Total General Obligation Bonds33,985,000 2,185,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving,
Series 2005E3.00 - 3.7509/13/0502/01/161,460,000 615,000
GO Permanent Improvement Revolving
Series 2007C3.60 - 4.2505/24/0702/01/195,870,000 505,000
GO Permanent Improvement Revolving
Series 2008B3.00 - 4.0008/28/0802/01/207,755,000 -
GO Permanent Improvement Revolving
Series 2010B2.00 - 3.0011/18/1002/01/222,305,000 -
GO Permanent Improvement Revolving
Series 2011A2.00 - 3.0010/27/1102/01/23- -
Total PIR Bonds 17,390,000 1,120,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.00 - 4.1309/13/0505/01/265,425,000 775,000
Taxable Public Project Revenue, Series 2009A2.10 - 4.5511/24/0902/01/302,595,000 -
Taxable Public Project Revenue, Series 2009B1.95 - 5.8011/24/0902/01/306,125,000 -
Total Public Project Revenue Bonds14,145,000 775,000
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00 - 3.0004/29/0901/01/172,010,000 415,000
Recreational Facility Bonds, Series 2009C2.00 - 4.0012/10/0902/01/302,440,000 -
Utility Revenue Bonds, Series 2003C1.10 - 3.5503/01/0302/01/133,200,000 2,125,000
Utility Revenue Bonds, Series 2007B4.00%05/24/0702/01/178,210,000 2,200,000
Utility Revenue Bonds, Series 2008A3.00 - 4.0008/28/0802/01/1913,985,000 1,730,000
Utility Revenue Bonds, Series 2011A2.00 - 3.0010/27/1102/01/22- -
Total Public Project Revenue Bonds29,845,000 6,470,000
Total - Bonded indebtedness102,890,000$ 14,755,000$
Prior Years
92
PrincipalInterestInterest
OutstandingPayableDueDuePayable
12/31/10 Issued Payments 12/31/11 In 2012 In 2012 to Maturity
325,000$ -$ 325,000$ -$ -$ -$ -$
1,400,000 - - 1,400,000 1,400,000 21,000 21,000
1,595,000 - 515,000 1,080,000 530,000 27,445 36,795
3,320,000 - 840,000 2,480,000 1,930,000 48,445 57,795
3,665,000 - 470,000 3,195,000 485,000 114,350 390,794
5,465,000 - 210,000 5,255,000 220,000 210,144 2,048,759
14,000,000 - 510,000 13,490,000 525,000 484,999 5,578,855
155,000 - 75,000 80,000 80,000 800 800
8,285,000 - 755,000 7,530,000 635,000 285,325 1,599,025
230,000 - 80,000 150,000 75,000 2,250 3,000
31,800,000 - 2,100,000 29,700,000 2,020,000 1,097,868 9,621,233
845,000 - 150,000 695,000 145,000 22,294 62,047
5,365,000 - 525,000 4,840,000 555,000 175,756 765,906
7,755,000 - 655,000 7,100,000 675,000 244,019 1,278,742
2,305,000 - - 2,305,000 - 54,100 357,725
- 3,320,000 - 3,320,000 - 61,345 600,645
16,270,000 3,320,000 1,330,000 18,260,000 1,375,000 557,514 3,065,065
4,650,000 - 210,000 4,440,000 220,000 175,044 1,496,072
2,595,000 - - 2,595,000 - 100,203 1,185,411
6,125,000 - - 6,125,000 125,000 290,141 3,431,469
13,370,000 - 210,000 13,160,000 345,000 565,388 6,112,952
1,595,000 - 405,000 1,190,000 420,000 22,400 55,400
2,440,000 - 80,000 2,360,000 100,000 82,600 946,600
1,075,000 - 345,000 730,000 360,000 19,345 25,913
6,010,000 - 760,000 5,250,000 795,000 194,100 654,000
12,255,000 - 1,165,000 11,090,000 1,205,000 399,781 1,852,182
- 11,230,000 - 11,230,000 - 198,764 1,679,039
23,375,000 11,230,000 2,755,000 31,850,000 2,880,000 916,990 5,213,134
88,135,000$ 14,550,000$ 7,235,000$ 95,450,000$ 8,550,000$ 3,186,205$ 24,070,179$
2011
93
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, 2011
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 17,764,833 897,273 11,075,001
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds- 300,000 1,100,026 48,061 (848,087)
Other- - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 33,804,186 945,334 9,887,587
Uses of funds:
Land acquisition- 6,500,000 4,984,728 - 1,515,272
Installation of public utilities
and improvements4,310,000 17,127,000 9,738,935 - 7,388,065
Bond payments:
Principal- 9,900,000 7,912,555 325,000 1,662,445
Interest- 9,190,000 3,274,104 49,800 5,866,096
Loan/note interest- - 5,150,288 - (5,150,288)
Paid to other governments- - 203,984 1,944 (205,928)
Administrative costs190,000 1,920,107 1,375,023 428 544,656
Total uses of funds:4,500,000 44,637,107 32,639,617 377,172 11,620,318
Funds remaining (deficit)-$ -$ 1,164,569$ 568,162$ (1,732,731)$
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$
94
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, 2011
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 45,329,718 3,186,072 41,484,210
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 4,255,507 256,719 (2,012,226)
Transfer in - 40,000,000 38,646,971 - 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:126,400,000 180,431,702 134,206,278 3,442,791 42,782,633
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 21,186,039 25,321 4,659,870
Bond payments:
Principal 41,400,000 41,400,000 34,299,724 515,000 6,585,276
Interest 38,000,000 38,000,000 34,215,802 44,559 3,739,639
Administrative costs 1,140,800 1,600,000 1,398,185 40,238 161,577
Paid to other governments - 42,000 45,837 4,346 (8,183)
Loan/note interest- 14,684,711 6,250,273 529,415 7,905,023
Parkland dedication fees- 2,030,345 2,030,345 - -
Total uses of funds:121,117,800 146,609,711 122,407,630 1,158,879 23,043,202
Funds remaining (deficit)5,282,200$ 33,821,991$ 11,798,648$ 2,283,912$ 19,739,431$
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$
95
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, 2011
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- - 276,490 15,220 (291,710)
Total sources of funds:4,088,855 4,088,855 1,023,353 15,220 3,050,282
Uses of funds:
Land acquisition529,400 529,400 43,937 1,862 483,601
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 4,088,855 661,776 1,862 3,425,217
Funds remaining (deficit)-$ -$ 361,577$ 13,358$ (374,935)$
96
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
98
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.
106
110
115
117
97
CITY OF EDINA, MINNESOTA
NET ASSETS BY COMPONENT
LAST NINE FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006
Governmental activities
Invested in capital assets,
net of related debt21,792,377$ 34,320,784$ 36,092,020$ 69,814,012$
Restricted4,676,748 2,145,488 78,943 -
Unrestricted31,876,783 28,762,040 35,796,801 15,280,058
Total governmental
activities net assets 58,345,908$ 65,228,312$ 71,967,764$ 85,094,070$
Business-type activities
Invested in capital assets,
net of related debt29,952,549$ 37,240,476$ 40,044,169$ 46,981,755$
Restricted1,672,828 - - -
Unrestricted15,344,474 11,934,496 11,121,720 6,379,515
Total business-type
activities net assets 46,969,851$ 49,174,972$ 51,165,889$ 53,361,270$
Primary government
Invested in capital assets,
net of related debt51,744,926$ 71,561,260$ 76,136,189$ 116,795,767$
Restricted6,349,576 2,145,488 78,943 -
Unrestricted47,221,257 40,696,536 46,918,521 21,659,573
Total primary government
net assets 105,315,759$ 114,403,284$ 123,133,653$ 138,455,340$
Fiscal Year
98
2007 2008 2009 2010 2011
67,680,882$ 71,601,227$ 69,622,370$ 69,783,162$ 75,045,018$
- 3,362,446 7,132,865 9,952,443 22,915,776
25,136,312 29,577,462 30,705,600 41,709,528 29,544,149
92,817,194$ 104,541,135$ 107,460,835$ 121,445,133$ 127,504,943$
43,046,160$ 46,851,736$ 47,333,794$ 48,807,806$ 56,877,100$
- 954,486 624,837 618,852 623,099
13,649,355 12,071,776 15,158,720 17,041,122 12,926,674
56,695,515$ 59,877,998$ 63,117,351$ 66,467,780$ 70,426,873$
110,727,042$ 118,452,963$ 116,956,164$ 118,590,968$ 131,922,118$
- 4,316,932 7,757,702 10,571,295 23,538,875
38,785,667 41,649,238 45,864,320 58,750,650 42,470,823
149,512,709$ 164,419,133$ 170,578,186$ 187,912,913$ 197,931,816$
Fiscal Year
99
CITY OF EDINA, MINNESOTA
CHANGES IN NET ASSETS
LAST NINE FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006
Expenses
Governmental activities:
General government5,839,893$ 6,934,045$ 4,967,008$ 5,414,961$
Public safety10,784,215 11,063,767 12,019,027 13,300,351
Public works5,621,291 5,834,490 7,185,784 8,973,031
Parks4,484,685 4,248,060 5,901,648 5,341,682
Interest on long-term debt 2,760,022 2,399,682 2,288,524 2,973,749
Total governmental activities expenses 29,490,106 30,480,044 32,361,991 36,003,774
Business-type activities:
Utilities7,930,502 7,801,580 8,254,409 9,234,651
Liquor8,764,081 9,110,888 9,749,313 9,968,963
Aquatic center711,061 701,768 725,936 795,614
Golf course3,555,243 3,508,741 3,580,307 3,652,169
Community activity centers 3,833,026 3,850,192 3,825,562 4,048,649
Total business-type activities expenses 24,793,913 24,973,169 26,135,527 27,700,046
Total primary government expenses 54,284,019$ 55,453,213$ 58,497,518$ 63,703,820$
Program Revenues
Governmental activities:
Charges for services:
General government930,391$ 454,603$ 619,526$ 731,613$
Public safety4,213,081 4,634,744 5,614,406 6,146,114
Other activities 898,141 748,398 630,157 793,796
Operating grants and contributions 1,215,745 1,154,808 1,512,366 1,423,302
Capital grants and contributions 7,214,393 4,192,947 2,252,491 4,013,617
Total governmental activities program revenues 14,471,751 11,185,500 10,628,946 13,108,442
Business-type activities:
Charges for services:
Utilities9,694,981 9,875,078 10,240,381 11,421,474
Liquor9,659,631 10,030,067 10,752,724 11,029,445
Aquatic center 861,340 764,134 849,380 867,626
Golf course 3,684,079 3,538,122 3,482,999 3,646,620
Community activity centers 2,966,731 3,254,012 3,251,860 3,337,153
Operating grants and contributions 132,031 138,447 131,408 122,358
Total business-type activities program revenues 26,998,793 27,599,860 28,708,752 30,424,676
Total primary government program revenues 41,470,544$ 38,785,360$ 39,337,698$ 43,533,118$
Net (Expense)/Revenue
Governmental activities(15,018,355)$ (19,294,544)$ (21,733,045)$ (22,895,332)$
Business-type activities 2,204,880 2,626,691 2,573,225 2,724,630
Total primary government net expense (12,813,475)$ (16,667,853)$ (19,159,820)$ (20,170,702)$
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes17,815,426$ 17,865,757$ 19,071,202$ 20,414,298$
Tax increment collections7,342,270 6,761,934 7,060,744 7,228,002
Franchise taxes- 450,956 457,421 499,206
Unrestricted investment earnings286,209 443,074 977,956 1,230,264
Gain on disposal of capital assets26,669 - 63,674 8,418
Transfers (4,053,805) 655,227 841,500 838,230
Total governmental activities 21,416,769 26,176,948 28,472,497 30,218,418
Business-type activities:
Property taxes-$ -$ -$ -$
Unrestricted investment earnings387,117 227,167 236,654 283,771
Gain (loss) on disposal of capital assets(177,051) 6,490 22,538 25,210
Transfers4,053,805 (655,227) (841,500) (838,230)
Total business-type activities 4,263,871 (421,570) (582,308) (529,249)
Total primary government 25,680,640$ 25,755,378$ 27,890,189$ 29,689,169$
Change in Net Assets
Governmental activities6,398,414$ 6,882,404$ 6,739,452$ 7,323,086$
Business-type activities 6,468,751 2,205,121 1,990,917 2,195,381
Total primary government 12,867,165$ 9,087,525$ 8,730,369$ 9,518,467$
Fiscal Year
100
2007 2008 2009 2010 2011
7,039,298$ 6,836,248$ 7,362,560$ 6,961,082$ 7,013,231$
13,743,194 14,833,647 14,751,479 15,543,594 16,024,575
8,757,022 9,046,873 8,993,290 8,558,363 9,193,336
5,025,560 5,971,565 7,732,777 5,608,758 5,540,585
1,887,633 1,923,821 2,129,490 2,528,424 2,339,370
36,452,707 38,612,154 40,969,596 39,200,221 40,111,097
10,036,844 10,625,811 11,833,994 11,848,538 12,130,685
10,361,998 11,049,223 11,449,194 11,594,643 11,727,106
780,981 787,663 798,369 769,608 718,027
3,621,977 3,612,482 3,588,831 3,561,573 3,390,949
4,168,534 4,502,849 4,636,375 4,492,779 4,687,916
28,970,334 30,578,028 32,306,763 32,267,141 32,654,683
65,423,041$ 69,190,182$ 73,276,359$ 71,467,362$ 72,765,780$
784,659$ 840,070$ 811,087$ 946,107$ 969,745$
5,632,642 5,839,683 5,081,563 5,448,505 5,988,485
736,329 763,130 804,500 723,559 775,676
1,384,024 1,170,183 1,377,785 1,162,411 1,392,892
4,299,509 7,710,015 2,582,999 13,325,431 5,770,912
12,837,163 16,323,081 10,657,934 21,606,013 14,897,710
13,125,773 13,713,249 14,858,488 15,036,016 15,873,937
11,436,175 12,122,599 12,655,777 12,857,064 13,172,484
868,833 925,388 859,816 945,529 913,383
3,630,538 3,680,584 3,660,466 3,443,204 3,285,741
3,517,111 3,517,218 3,606,684 3,495,982 3,646,571
127,492 147,456 135,917 373,230 135,428
32,705,922 34,106,494 35,777,148 36,151,025 37,027,544
45,543,085$ 50,429,575$ 46,435,082$ 57,757,038$ 51,925,254$
(23,615,544)$ (22,289,073)$ (30,311,662)$ (17,594,208)$ (25,213,387)$
3,735,588 3,528,466 3,470,385 3,883,884 4,372,861
(19,879,956)$ (18,760,607)$ (26,841,277)$ (13,710,324)$ (20,840,526)$
21,459,001$ 22,242,276$ 23,834,274$ 25,122,113$ 25,040,871$
7,793,577 8,578,434 7,587,386 4,488,073 4,083,345
570,871 647,466 667,791 692,288 722,160
1,581,702 1,185,899 387,177 474,444 601,250
58,377 1,265 11,709 35,594 131,365
919,625 967,800 743,025 765,994 694,206
32,383,153 33,623,140 33,231,362 31,578,506 31,273,197
-$ -$ 300,372$ -$ -$
510,678 607,312 209,371 205,965 280,438
7,604 14,505 2,250 26,574 -
(919,625) (967,800) (743,025) (765,994) (694,206)
(401,343) (345,983) (231,032) (533,455) (413,768)
31,981,810$ 33,277,157$ 33,000,330$ 31,045,051$ 30,859,429$
8,767,609$ 11,334,067$ 2,919,700$ 13,984,298$ 6,059,810$
3,334,245 3,182,483 3,239,353 3,350,429 3,959,093
12,101,854$ 14,516,550$ 6,159,053$ 17,334,727$ 10,018,903$
Fiscal Year
101
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2002 2003a 2004 2005b
General fund
Reserved417,093$ 412,991$ 390,771$ 223,351$
Unreserved14,325,972 9,961,074 10,226,055 11,595,433
Nonspendable- - - -
Restricted- - - -
Assigned- - - -
Unassigned - - - -
Total general fund14,743,065$ 10,374,065$ 10,616,826$ 11,818,784$
All other governmental funds
Reserved4,186,436$ 4,084,987$ 3,465,440$ 13,792,312$
Unreserved, reported in:
Special revenue funds1,589,518 686,777 781,458 731,027
Capital projects funds26,750,351 19,608,849 16,651,788 17,032,750
Restricted, reported in:
Special revenue funds- - - -
Debt service funds- - - -
Construction funds- - - -
Assigned, reported in:
Capital projects funds- - - -
Total all other governmental funds32,526,305$ 24,380,613$ 20,898,686$ 31,556,089$
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.
d The City implemented GASB Statement No. 54, "Fund Balance Reporting and Governmental
Fund Type Definitions" in 2011. The City did not apply the statement retroactively.
Fiscal Year
102
2006 2007 2008 2009c 2010 2011d
36,849$ 28,637$ 13,982$ 18,241$ 10,258$ -$
13,797,189 14,078,220 14,365,021 12,031,358 12,868,952 -
- - - - - 10,871
- - - - - 178,295
- - - - - 1,539,286
- - - - - 11,744,764
13,834,038$ 14,106,857$ 14,379,003$ 12,049,599$ 12,879,210$ 13,473,216$
2,682,238$ 6,247,539$ 8,467,918$ 15,223,353$ 9,460,834$ -$
13,179,904 14,750,448 14,950,538 12,813,439 15,333,460 -
3,160,085 5,853,322 4,270,440 6,683,668 12,150,968 -
- - - - - 17,178,857
- - - - - 8,068,183
- - - - - 2,087,548
- - - - - 8,098,935
19,022,227$ 26,851,309$ 27,688,896$ 34,720,460$ 36,945,262$ 35,433,523$
Fiscal Year
103
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2002 2003 2004 2005
Revenues
General property taxes24,735,336$ 17,903,618$ 17,865,757$ 19,071,202$
Tax increment collections- 7,342,270 6,761,934 7,060,744
Special assessments998,908 1,019,461 966,879 1,354,264
Franchise fees418,153 393,627 450,956 457,421
License and permits1,939,207 2,182,263 2,247,759 3,240,622
Intergovernmental2,254,968 4,678,735 3,933,540 1,539,169
Charges for services2,096,806 2,076,519 2,279,302 2,466,663
Fines and forfeitures910,407 785,227 863,073 742,917
Investment income1,178,211 286,209 443,074 977,956
Rental of property1,782,063 354,266 385,707 315,542
Other revenues180,081 200,551 294,136 227,446
Total revenues36,494,140 37,222,746 36,492,117 37,453,946
Expenditures
General government5,372,431 5,709,741 5,213,469 5,477,308
Public safety9,893,428 10,352,816 11,125,388 11,373,763
Public works4,161,373 4,142,668 4,386,669 4,882,811
Parks2,602,266 2,974,164 2,954,372 3,146,029
Capital outlay11,059,757 15,539,676 7,772,321 8,227,191
Debt service
Principal5,885,000 5,700,000 6,450,000 6,830,000
Interest and other charges3,094,480 2,908,787 2,484,291 2,543,639
Total expenditures42,068,735 47,327,852 40,386,510 42,480,741
Revenues over (under) expenditures(5,574,595) (10,105,106) (3,894,393) (5,026,795)
Other Financing Sources (Uses)
Transfers in12,308,480 8,752,126 8,367,595 7,797,369
Transfers out(11,552,990) (12,805,931) (7,712,368) (6,955,869)
Sale of capital assets- - - 135,045
Bonds issued13,637,416 1,540,000 - 15,816,165
Premium on bonds issued- 59,219 - -
Discount on bonds issued- - - (36,275)
Refunding bonds issued- 6,570,000 - 16,764,721
Payment to refunding escrow(2,550,000) (6,525,000) - (16,635,000)
Principal paid by escrow- - - -
Total other financing sources (uses)11,842,906 (2,409,586) 655,227 16,886,156
Net change in fund balances6,268,311$ (12,514,692)$ (3,239,166)$ 11,859,361$
Debt service as a percentage of
noncapital expenditures29.0%27.1%27.4%27.4%
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
104
2006 2007a 2008 2009 2010 2011
20,414,298$ 21,459,001$ 22,242,276$ 23,834,274$ 25,122,113$ 24,972,166$
7,228,002 7,793,577 8,578,434 7,587,386 4,488,073 4,083,345
1,751,219 1,750,444 2,442,490 2,703,833 6,746,186 4,502,112
499,206 570,871 647,466 667,791 692,288 722,160
3,488,897 2,909,521 2,915,455 2,104,967 2,410,314 2,724,763
2,773,350 3,699,006 3,005,883 1,507,170 3,726,849 3,059,964
2,691,354 2,748,709 3,093,941 2,905,410 3,014,894 3,181,961
1,023,935 971,486 1,073,174 1,224,983 1,203,767 1,243,426
1,230,264 1,581,702 1,185,899 387,177 474,444 601,250
310,145 355,734 255,607 343,616 426,517 539,091
246,797 225,839 126,723 160,035 413,400 156,231
41,657,467 44,065,890 45,567,348 43,426,642 48,718,845 45,786,469
5,995,804 6,544,307 6,235,352 6,895,329 6,523,398 5,739,481
12,431,114 12,985,215 13,788,797 13,692,686 14,177,387 14,668,772
5,233,907 5,787,619 6,189,594 5,911,758 5,898,023 6,000,539
3,300,375 3,455,789 3,693,595 3,688,063 3,524,950 3,633,922
8,980,526 11,991,122 14,666,907 22,997,065 13,505,827 14,235,496
5,985,000 6,190,000 7,090,000 7,415,000 2,975,000 4,480,000
2,107,036 1,677,770 1,967,021 1,841,342 2,584,006 2,278,068
44,033,762 48,631,822 53,631,266 62,441,243 49,188,591 51,036,278
(2,376,295) (4,565,932) (8,063,918) (19,014,601) (469,746) (5,249,809)
6,865,258 7,290,391 7,983,585 11,347,773 2,903,762 5,615,669
(6,027,028) (6,370,766) (7,015,785) (10,604,748) (2,137,768) (4,921,463)
54,457 66,845 96,825 34,592 134,329 209,773
- 11,735,000 7,755,000 22,950,000 2,535,000 3,320,000
- - - 64,765 898,658 108,097
- (53,637) (35,848) (75,621) - -
- - - - 8,285,000 -
- - - - (9,094,822) -
(9,035,000) - - - - -
(8,142,313) 12,667,833 8,783,777 23,716,761 3,524,159 4,332,076
(10,518,608)$ 8,101,901$ 719,859$ 4,702,160$ 3,054,413$ (917,733)$
23.1%20.9%22.6%21.7%15.4%17.8%
Fiscal Year
105
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
5,821,567$ DNADNA72,584$ 59,176$ 61,007$ 27.806%0.01200%2.914$
6,328,581 DNA DNA77,666 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
9,960,341 9,960,341 9,949,807 120,817 104,914 108,452 22.972%0.00606%2.501
9,441,688 9,441,688 9,431,941 113,981 98,897 102,319 24.660%0.00654%2.672
Source: Hennepin County Taxpayer Services. 2002-2004 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.
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2008
Fiscal Direct
2006
2007
2002
2003
2004
2005
2011
Year
2009
2010
106
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
BasicDebtTotal TaxDirect &
RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap
26.116%1.690%27.806%0.012%50.409%18.504%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%
20.004%2.968%22.972%0.006%42.640%18.746%0.194%9.431%93.789%
21.548%3.112%24.660%0.007%45.840%21.786%0.196%10.489%102.775%
Source: Hennepin County Taxpayer Services. Some 2002-2004 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.
2011
2006
2007
2002
2003
2004
2005
2008
2009
2010
City RatesOverlapping Rates
ISD #273 EdinaFiscal
Year
107
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
PercentagePercentage
of Totalof Total
Tax CapacityRankCapacityTax CapacityRankCapacity
Southdale Shopping Center2,308,500$ 12.03%1,950,996$ 12.69%
Galleria Shopping Center1,188,800 21.04%784,882 31.08%
Southdale Office Park686,102 30.60%848,094 21.17%
Centennial Lakes Retail679,250 40.60%344,974 90.48%
Southdale Medical Building620,285 50.54%451,904 80.62%
Centennial Lakes Phase V571,370 60.50%553,106 50.76%
Centennial Lakes Phase IV560,290 70.49%568,808 40.78%
National Car536,870 80.47%- 0.00%
Target439,250 90.39%- 0.00%
Hellmuth & Johnson397,956 100.35%- 0.00%
Centennial Lakes Phase II- 0.00%344,974 100.48%
United Healthcare Corporation- 0.00%539,116 60.74%
7700 France- 0.00%473,950 70.65%
Totals7,988,673$ 7.01%6,860,804$ 9.45%
Source: City of Edina Assessing Office
20022011
Taxpayer
108
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections in
TaxPercentageSubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
17,728,603$ 16,985,098$ 95.81%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%22,734 18,089,626 96.18%
19,667,551 19,090,016 97.06%82,177 19,172,193 97.48%
20,820,130 20,310,889 97.55%66,489 20,377,378 97.87%
21,530,528 21,347,789 a 99.15%a 58,673 21,406,462 99.42%
22,605,669 22,178,719 b 98.11%b 159,682 22,338,401 98.82%
24,153,933 23,484,137 c 97.23%c 71,373 23,555,510 97.52%
25,492,973 24,904,346 97.69%(52,537) 24,851,810 97.48%
25,786,217 25,067,625 97.21%- 25,067,625 97.21%
Source: Hennepin County Taxpayer Services.
a In 2007 the State of Minnesota reimbursed the City for MVHC after five years of not making payments.
b In 2008 the State of Minnesota reimbursed the City for only 50% of MVHC.
c In 2009 the State of Minnesota once again quit reimbursing the City for MVHC.
2011
Collected within the
Fiscal Year of the Levy
2005
2002
2003
2004
2009
2008
2010
Total Collections to Date
Taxes
Payable
2006
2007
109
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
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 3.54%1,897
31,800 13,370 3,320 16,270 4,035 19,340 88,135 3.41%1,830
29,700 13,160 2,480 18,260 3,550 28,300 95,450 3.62%1,978
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
Business-Type ActivitiesGovernmental Activities
Year
Fiscal
2011
2002
2003
2004
2005
2008
2009
2006
2007
2010
110
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
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
31,800 13,370 3,320 48,490 0.49%1,007
29,700 13,160 2,480 45,340 0.48%939
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
a See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for
estimated property value data.
General Bonded Debt
Year
Fiscal
2006
2011
2009
2008
2007
2002
2003
2004
2005
2010
111
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2011
Net GeneralPercentage
Obligation Bonded ApplicableCity Share
Debt Outstanding a in City b of Debt
Overlapping Debt:
Hennepin County723,889,101$ 7.57%54,798,405$
Hennepin Suburban Park District64,252,898 10.16%6,528,094
Hennepin Regional Rail Authority40,128,161 7.57%3,037,702
School Districts:
ISD No. 273 (Edina)69,167,442 98.66%68,240,598
ISD No. 270 (Hopkins)181,415,841 8.43%15,293,355
ISD No. 272 (Eden Prairie)72,112,436 1.05%757,181
ISD No. 280 (Richfield)25,696,510 22.66%5,822,829
ISD No. 283 (St. Louis Park)44,284,075 0.02%8,857
Metro Council142,956,525 3.28%4,688,974
Total Overlapping Debt1,363,902,989 159,175,995
City of Edina27,635,989 100.00%27,635,989
Total Overlapping and Direct Debt1,391,538,978$ 186,811,984$
Ratio of debt per capita (48,262 population)3,871$
Ratio of debt to estimated market valuation of $9,441,688,0001.98%
Source: Hennepin County Taxpayer Services
a Calculation excludes revenue and special assessment bonds as well as sinking fund balance, if any.
b The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
112
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2002 2003 2004 2005 2006 2007 2008a 2009 2010 2011
Debt limit 138,279$ 138,190$ 160,674$ 173,867$ 191,974$ 199,775$ 302,385$ 301,369$ 298,494$ 282,958$
Total net debt
applicable
to limit 19,360 20,200 18,890 29,785 21,750 26,380 25,095 46,670 45,170 42,860
Legal debt
margin 118,919$ 117,990$ 141,784$ 144,082$ 170,224$ 173,395$ 277,290$ 254,699$ 253,324$ 240,098$
Total net debt
applicable to
the limit as a
percentage of
debt limit 14.00%14.62%11.76%17.13%11.33%13.20%8.30%15.49%15.13%15.15%
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.
282,958,227
13,160,000
240,098,227$
Fiscal Year
9,431,940,900$
29,700,000
42,860,000
Legal Debt Margin Calculation for Fiscal Year 2011
113
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
20101,421,354 - 1,421,354 9,280,000 901,535 10,181,535 0.14
20111,346,294 - 1,346,294 210,000 574,681 784,681 1.72
Tax Increment Bonds
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
20104,488,073 - 4,488,073 805,000 125,820 930,820 4.82
20114,083,345 - 4,083,345 840,000 94,359 934,359 4.37
Permanent Improvement Revolving Bonds (Special Assessment)
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
20101,339,350 - 1,339,350 655,000 520,278 1,175,278 1.14
20112,466,395 - 2,466,395 1,330,000 524,964 1,854,964 1.33
Utility Bond
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 10,815,216 4,042,582 2,045,000 803,157 2,848,157 1.42
201015,034,881 11,119,053 3,915,828 2,185,000 768,160 2,953,160 1.33
201115,871,102 11,438,288 4,432,814 2,270,000 693,285 2,963,285 1.50
Recreational Facility Bonds
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)
20105,690,239 5,822,861 (132,622) 415,000 100,926 515,926 (0.26)
20115,510,043 5,760,947 (250,904) 485,000 115,050 600,050 (0.42)
Debt service requirementsFiscal
Year
114
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Estimated
PersonalPer CapitaHigh School
IncomePersonalGraduationUnemployment
Population(In thousands)IncomeRateRate
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%
48,1692,582,436 53,612 92.4%6.38%
47,9412,622,564 54,704 91.6%5.56%
48,2622,640,124 54,704 92.2%5.25%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council.
Personal income and per capita income estimates based on MN Department of Employment
and Economic Development Quarterly Census of Employment and Wages. 2010 is the most recent.
High school graduation rate data from U.S. Census Bureau for all of Hennepin County.
Unemployment rate data from State of Minnesota Department of Employment and Economic Development.
2011
2008
2009
Fiscal
Year
2007
2006
2005
2004
2003
2002
2010
115
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total City Total City
EmployeesRankEmployment EmployeesRankEmployment
Fairview Southdale Hospital 1,000 14.58%2,400 110.30%
Macy's (Marshall Field's or Dayton's)1,000 24.58%500 52.15%
BI Worldwide 1,000 34.58%DNADNADNA
Edina Public Schools ISD #273 600 42.75%DNADNADNA
Promenade Salon Concepts 500 52.29%DNADNADNA
Regis Salons Division 500 62.29%DNADNADNA
Regis Franchise Division 500 72.29%DNADNADNA
Regis Corp.500 82.29%DNADNADNA
Master Cuts Division 500 92.29%DNADNADNA
Smart Style Family Hair Care 500 102.29%DNADNADNA
Jerry's Enterprises, Inc.- 0.00%2,000 28.58%
Golden Valley Microwave Foods - 0.00%650 32.79%
Health Risk Management Inc.- 0.00%552 42.37%
JC Penny Co.- 0.00%400 61.72%
Norwest Funding - 0.00%358 71.54%
Nash Finch Co.- 0.00%350 81.50%
International Dairy Queen Inc.- 0.00%300 91.29%
Roach Organization Inc.- 0.00%140 100.60%
Totals 6,600 30.24%7,650 32.83%
Sources:
2011 data from www.mnprospector.com and ISD #273's annual report. For data obtained from
www.mnprospector.com, low number in the range was used.
2002 data from State of Minnesota Department of Employment and Economic Development (DEED).
DNA: Historical data is not available
20022011
Employer
116
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General Government
Administration8.25 8.25 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 3.85 3.85 3.85
Finance 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.25
Elections 1.00 1.00 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 6.50 7.50 7.50 7.50 8.50 8.50 8.50 8.50 8.50
Supervision 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.30
Maintenance 28.00 28.00 28.00 28.00 28.00 28.00 28.00 27.00 27.00 27.00
Public Safety
Police Protection69.00 68.00 66.00 69.00 69.00 70.00 70.00 71.00 70.00 67.50
Animal Control 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Fire Protection32.00 32.00 32.00 32.00 32.00 33.00 33.00 33.00 33.00 32.00
Public Health 3.75 2.75 2.75 2.75 2.75 2.75 2.75 2.65 2.65 2.65
Inspections 6.50 6.50 6.50 6.50 6.50 7.50 7.50 7.50 7.50 7.50
Parks & Recreation
Administration 7.00 7.00 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80
Maintenance 17.00 16.00 16.50 16.40 16.40 16.40 16.40 16.40 16.40 16.40
Central Services
General 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00 5.00
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 Ops6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50
Utilities 14.50 14.50 15.50 15.75 15.75 15.25 15.75 18.75 18.75 17.20
Liquor 9.75 9.75 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 0.55 0.55
Golf Course 15.00 15.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 11.00
Arena 5.00 6.00 6.00 6.00 6.00 6.00 6.00 5.00 5.00 5.00
Art Center 3.00 3.00 3.00 2.50 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park 7.00 7.00 7.00 7.00 6.00 7.00 7.00 7.00 7.00 7.00
Centennial Lakes 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Other 2.00 2.00 2.00 2.00 2.00 4.00 4.00 5.00 5.00 4.50
Total 273.00 270.00 268.50 271.50 270.00 277.50 278.00 281.00 280.00 274.00
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
117
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
General Government
Total City employees860 879 870 909 887 890 918 885 869 892
Votes cast a 28,156 10,721 31,730 1,367 26,270 7,930 31,512 2,733 25,463 7,957
Public Works
Asphalt placed (tons)- - - - 9,000 8,000 7,500 9,500 7,643 8,500
Concrete (cu. yds.)- - - - 650 850 480 640 503 558
Public Safety
Crimes reported2,139 2,073 1,983 1,908 1,937 2,010 2,025 1,985 1,890 NA
Fire calls 1,106 1,062 1,060 1,055 963 1,012 913 852 910 960
Medical calls 3,153 3,030 3,199 3,423 3,470 3,510 3,516 3,496 3,599 3,652
Central Services
Vehicle fixes - - - - 2,398 2,460 2,967 2,539 2,431 2,331
Utilities
Daily consumption b - - - - 7,209 7,372 7,376 7,596 6,790 6,909
Aquatic Center
Attendance 111,056 96,419 88,636 139,415 120,406 114,173 110,000 64,836 86,654 77,696
Golf Course
Total rounds played112,078 123,770 116,734 113,679 114,737 112,821 112,663 117,819 101,314 95,771
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
118
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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 40 40 40 40 40 40 40 40 40
Acreage of parks1,552 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553
Park buildings 27 27 27 27 27 27 27 27 27 27
Utilities
Wells 18 18 18 18 18 19 19 19 18 18
Watermain miles199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles186 186 186 186 186 186 186 186 186 186
Sewer connections 13,984 13,984 14,851 14,851 14,851 14,851 14,851 13,933 13,933 13,933
Arena
Ice sheets 3 3 3 3 3 3 3 3 3 3
Source: Various City departments
Fiscal Year
Function
119