HomeMy WebLinkAbout2012 Comprehensive Annual Financial ReportThe Irish and Scot families who settled Edina in the mid-1800s would not recognize the city that 100 years ago boasted a profitable Minnehaha Creek
gristmill and a grange hall. Today, Edina – named for that gristmill – boasts a population of more than 47,000 residents, a nationally renowned school
district, a thriving business community with several major shopping centers, more than a dozen financial institutions and about 30 award-winning
public parks. Edina’s 16 square miles are dotted with glacial ponds, streams and wetlands that add to the oasis-like atmosphere of this first-ring
suburb. Most of the City is within minutes of other “hot spots” in the Twin Cities and outlying suburbs. Though there are still signs of the Irish and
Scot heritage of Edina’s founders, today’s residents come from a variety of backgrounds. Volunteerism thrives in Edina and most of the community’s
success is due to its extraordinary volunteers. On the financial side, residents of Edina are well served. Taxes are comparatively low thanks to high
property values and a fiscally conservative government. The City of Edina is proud of its Standard and Poor’s AAA and Moody’s Investors Services
Aaa bond ratings. Edina is one of only a few Minnesota cities to have the top rating from both agencies. The Irish and Scot families who settled
Edina in the mid-1800s would not recognize the city that 100 years ago boasted a profitable Minnehaha Creek gristmill and a grange hall. Today,
Edina – named for that gristmill – boasts a population of more than 47,000 residents, a nationally renowned school district, a thriving business com-
munity with several major shopping centers, more than a dozen financial institutions and about 30 award-winning public parks. Edina’s 16 square
miles are dotted with glacial ponds, streams and wetlands that add to the oasis-like atmosphere of this first-ring suburb. Most of the City is within
minutes of other “hot spots” in the Twin Cities and outlying suburbs. Though there are still signs of the Irish and Scot heritage of Edina’s founders,
today’s residents come from a variety of backgrounds. Volunteerism thrives in Edina and most of the community’s success is due to its extraordinary
volunteers. On the financial side, residents of Edina are well served. Taxes are comparatively low thanks to high property values and a fiscally con-
servative government. The City of Edina is proud of its Standard and Poor’s AAA and Moody’s Investors Services Aaa bond ratings. Edina is one of
only a few Minnesota cities to have the top rating from both agencies. The Irish and Scot families who settled Edina in the mid-1800s would not
recognize the city that 100 years ago boasted a profitable Minnehaha Creek gristmill and a grange hall. Today, Edina – named for that gristmill –
boasts a population of more than 47,000 residents, a nationally renowned school district, a thriving business community with several major shopping
centers, more than a dozen financial institutions and about 30 award-winning public parks. Edina’s 16 square miles are dotted with glacial ponds,
streams and wetlands that add to the oasis-like atmosphere of this first-ring suburb. Most of the City is within minutes of other “hot spots” in the
Twin Cities and outlying suburbs. Though there are still signs of the Irish and Scot heritage of Edina’s founders, today’s residents come from a va-
riety of backgrounds. Volunteerism thrives in Edina and most of the community’s success is due to its extraordinary volunteers. On the financial
side, residents of Edina are well served. Taxes are comparatively low thanks to high property values and a fiscally conservative government. The
City of Edina is proud of its Standard and Poor’s AAA and Moody’s Investors Services Aaa bond ratings. Edina is one of only a few Minnesota cities
to have the top rating from both agencies. The Irish and Scot families who settled Edina in the mid-1800s would not recognize the city that 100 years
ago boasted a profitable Minnehaha Creek gristmill and a grange hall. Today, Edina – named for that gristmill – boasts a population of more than
47,000 residents, a nationally renowned school district, a thriving business community with several major shopping centers, more than a dozen fi-
nancial institutions and about 30 award-winning public parks. Edina’s 16 square miles are dotted with glacial ponds, streams and wetlands that add
to the oasis-like atmosphere of this first-ring suburb. Most of the City is within minutes of other “hot spots” in the Twin Cities and outlying suburbs.
Though there are still signs of the Irish and Scot heritage of Edina’s founders, today’s residents come from a variety of backgrounds. Volunteerism
thrives in Edina and most of the community’s success is due to its extraordinary volunteers. On the financial side, residents of Edina are well served.
Taxes are comparatively low thanks to high property values and a fiscally conservative government. The City of Edina is proud of its Standard and
Poor’s AAA and Moody’s Investors Services Aaa bond ratings. Edina is one of only a few Minnesota cities to have the top rating from both agencies.
The Irish and Scot families who settled Edina in the mid-1800s would not recognize the city that 100 years ago boasted a profitable Minnehaha Creek
gristmill and a grange hall. Today, Edina – named for that gristmill – boasts a population of more than 47,000 residents, a nationally renowned school
district, a thriving business community with several major shopping centers, more than a dozen financial institutions and about 30 award-winning
public parks. Edina’s 16 square miles are dotted with glacial ponds, streams and wetlands that add to the oasis-like atmosphere of this first-ring
suburb. Most of the City is within minutes of other “hot spots” in the Twin Cities and outlying suburbs. Though there are still signs of the Irish and
Scot heritage of Edina’s founders, today’s residents come from a variety of backgrounds. Volunteerism thrives in Edina and most of the community’s
success is due to its extraordinary volunteers. On the financial side, residents of Edina are well served. Taxes are comparatively low thanks to high
property values and a fiscally conservative government. The City of Edina is proud of its Standard and Poor’s AAA and Moody’s Investors Services
Aaa bond ratings. Edina is one of only a few Minnesota cities to have the top rating from both agencies. The Irish and Scot families who settled
Edina in the mid-1800s would not recognize the city that 100 years ago boasted a profitable Minnehaha Creek gristmill and a grange hall. Today,
Edina – named for that gristmill – boasts a population of more than 47,000 residents, a nationally renowned school district, a thriving business com-
munity with several major shopping centers, more than a dozen financial institutions and about 30 award-winning public parks. Edina’s 16 square
miles are dotted with glacial ponds, streams and wetlands that add to the oasis-like atmosphere of this first-ring suburb. Most of the City is within
minutes of other “hot spots” in the Twin Cities and outlying suburbs. Though there are still signs of the Irish and Scot heritage of Edina’s founders,
today’s residents come from a variety of backgrounds. Volunteerism thrives in Edina and most of the community’s success is due to its extraordinary
volunteers. On the financial side, residents of Edina are well served. Taxes are comparatively low thanks to high property values and a fiscally con-
servative government. The City of Edina is proud of its Standard and Poor’s AAA and Moody’s Investors Services Aaa bond ratings. Edina is one of
only a few Minnesota cities to have the top rating from both agencies. The Irish and Scot families who settled Edina in the mid-1800s would not
recognize the city that 100 years ago boasted a profitable Minnehaha Creek gristmill and a grange hall. Today, Edina – named for that gristmill –
boasts a population of more than 47,000 residents, a nationally renowned school district, a thriving business community with several major shopping
centers, more than a dozen financial institutions and about 30 award-winning public parks. Edina’s 16 square miles are dotted with glacial ponds,
streams and wetlands that add to the oasis-like atmosphere of this first-ring suburb. Most of the City is within minutes of other “hot spots” in the
Twin Cities and outlying suburbs. Though there are still signs of the Irish and Scot heritage of Edina’s founders, today’s residents come from a va-
riety of backgrounds. Volunteerism thrives in Edina and most of the community’s success is due to its extraordinary volunteers. On the financial
side, residents of Edina are well served. Taxes are comparatively low thanks to high property values and a fiscally conservative government. The
City of Edina is proud of its Standard and Poor’s AAA and Moody’s Investors Services Aaa bond ratings. Edina is one of only a few Minnesota cities
to have the top rating from both agencies. The Irish and Scot families who settled Edina in the mid-1800s would not recognize the city that 100 years
ago boasted a profitable Minnehaha Creek gristmill and a grange hall. Today, Edina – named for that gristmill – boasts a population of more than
47,000 residents, a nationally renowned school district, a thriving business community with several major shopping centers, more than a dozen fi-
nancial institutions and about 30 award-winning public parks. Edina’s 16 square miles are dotted with glacial ponds, streams and wetlands that add
to the oasis-like atmosphere of this first-ring suburb. Most of the City is within minutes of other “hot spots” in the Twin Cities and outlying suburbs.
Though there are still signs of the Irish and Scot heritage of Edina’s founders, today’s residents come from a variety of backgrounds. Volunteerism
thrives in Edina and most of the community’s success is due to its extraordinary volunteers. On the financial side, residents of Edina are well served.
e·di·na / ĭ-dī-nə / noun
1. The preeminent place for living,
learning, raising families & doing business
COMPREHENSIVE
FOR THE FISCAL YEARENDED DEC. 31, 2012
ANNUAL FINANCIALREPORT
City of Edina, Minnesota
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2012
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 Analysis11
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 23
Statement of Activities 24
Fund Financial Statements:
Balance Sheet - Governmental Funds27
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities29
Statement of Net Position - Proprietary Funds30
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds 31
Statement of Cash Flows - Proprietary Funds32
Statement of Fiduciary Net Position - Fiduciary Funds34
Notes to the Financial Statements 35
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund67
Budgetary Comparison Schedule - Housing and Redevelopment Authority (HRA)72
Other Post-Employment Benefits Plan Schedule of Funding Progress73
Notes to Required Supplementary Information74
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Special Revenue Funds78
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds79
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 80
Special Revenue Fund - Police Special Revenue
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 81
Special Revenue Fund - Braemar Memorial
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 82
Governmental Fund - Debt Service
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 84
Governmental Fund - Construction
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 85
Combining Statement of Net Position - Nonmajor Proprietary Funds88
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Nonmajor Proprietary Funds89
Combining Statement of Cash Flows - Nonmajor Proprietary Funds90
Combining Statement of Changes in Assets and Liabilities - Agency Funds93
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates95
Combined Schedule of Bonded Indebtedness96
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #120298
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #120399
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207 100
Schedule of Sources and Uses of Public Funds for Southdale 2 - #1208101
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component 104
Changes in Net Position 106
Fund Balances of Governmental Funds108
Changes in Fund Balances of Governmental Funds110
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property112
Direct and Overlapping Tax Capacity Rates113
Principal Property Tax Payers 114
Property Tax Levies and Collections115
Debt Capacity:
Ratios of Outstanding Debt by Type116
Ratios of General Bonded Debt Outstanding117
Direct and Overlapping Governmental Activities Debt118
Legal Debt Margin Information 119
Pledged Revenue Coverage 120
Demographic and Economic Information:
Demographic and Economic Statistics121
Principal Employers 122
Operating Information:
Full-Time Equivalent City Government Employees by Function123
Operating Indicators by Function 124
Capital Asset Statistics by Function125
This page left blank intentionally.
June 5,2013
To the Honorable Mayor, City Council, and Citizens of the City of Edina (City):
Minnesota statutes require that every city publish within six months of the close of each fiscal year a
complete set of audited financial statements. This report is published to fulfill that requirement for the
fiscal year ended December 31, 2012.
Management assumes full responsibility for the completeness and reliability of all of the information
presented in this report, based upon a comprehensive framework of internal control that it has
established for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable rather than absolute assurance that the financial
statements are free from material misstatement.
Malloy, Montague, Karnowski, Radosevich, & Co. P.A., a firm of licensed certified public accountants,
has issued an unqualified ("clean") opinion on the City's financial statements for the year ended
December 31, 2012. The independent auditor's report is located at the front of the financial section of
this report.
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report
and provides a narrative introduction, overview, and analysis of the basic financial statements. The
MD&A complement this letter of transmittal and should be read in conjunction with it.
Profile of the City
The City, incorporated in 1888, is a fully developed first-ring suburb of Minneapolis. The City currently
occupies a land area of 16 square miles and serves a population of 48,262. Currently, 98% of the
City is developed with 55.5% of the land attributed to residential uses, 13.1% to roadways and 11.8%
supporting the park and open spaces. The remainder of the land is used for commercial, industrial
and public/semi-public uses. The City is empowered to levy a property tax on both real and personal
property located within its boundaries.
The City has operated under the Council-Manager form of government since 1955. Policy-making
and legislative authority are vested in a City Council (Council) consisting of the Mayor and four other
members, all elected on a non-partisan basis. The Council is responsible, among other things, for
passing ordinances, adopting the budget, appointing committees, and hiring the City Manager. The
City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing
the day-to-day operations of the city government, and for appointing the heads of the various
departments. Council members serve four-year terms, with two Council members elected every two
years. The Mayor also serves a four-year term. The Council and Mayor are elected at large.
The City provides a full range of services, including police and fire protection; the construction and
maintenance of highways, streets, and other infrastructure; water and sewer services and
recreational and cultural activities and events.
The Council is required to adopt a final budget by no later than the close of the fiscal year. The
annual budget serves as the foundation for the City's financial planning and control. The budget is
prepared by fund, function (e.g., public safety), and department (e.g. police). Department heads may
use resources within a department as they see fit. The City Manager may authorize transfers of
budgeted amounts between departments.
CIY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
www.EdinaMN.gov • 952-927-8861 • Fax 952-826-0390
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 available 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 $11,902,462 unassigned fund balance in the general fund. This
amount is $1,697,872 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, 2011. This was the
sixth 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, 2012
Term Expires
Mayor:
James Hovland December 31, 2016
Council Members:
Mary Brindle December 31, 2016
Ann Swenson December 31, 2016
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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Enterprise FacilitiesCommunity Development Planning Assessing
PRINCIPALS
Thomas M. Montague, CPA
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Lichen, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
CE RT IF IED PUBLIC
ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the City Council and Management
City of Edina, Minnesota
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Edina, Minnesota (the City) as of
and for the year ended December 31, 2012, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
7
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Telephone: 952-545-0424 • Telefax: 952-545-0569 • www.mmkr.com
OPINIONS
In our opinion, the financial statements referred to on the previous page present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of December 31, 2012, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then ended,
in accordance with accounting principles generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, the Budgetary Comparison Information, and the Schedule of Funding Progress
for the Other Post-Employment Benefits Plan, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, the combining and individual
nonmajor fund financial statements and schedules, the supplementary financial information, and the
statistical section, as listed in the table of contents, are presented for purposes of additional analysis and
are not required parts of the basic financial statements.
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund financial statements and schedules are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section, supplementary financial information, and statistical section have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
(continued)
8
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 5, 2013 on
our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
/Iloilo M0 oe, 7' °I
Minneapolis, Minnesota
June 5,2013
s 14: 4 Cz-t R/1-
9
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10
11
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, 2012. 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
$210,481,664 (net position). Of this amount, $43,978,309 (unrestricted net position) 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 position increased by $12,549,848. $4,975,641 of this increase is due to
special assessment revenues, which help support our road reconstruction program. Also,
$5,408,569 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 $47,648,857, a decrease of $1,257,882 in comparison with the prior year.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$11,902,462 or 40% of total general fund expenditures.
The City’s total bonded debt increased by $4,253,720 during the current fiscal year, from
$95,450,000 to $99,703,720. The City issued new debt during the year consisting of $13,680,000
general obligation bonds to finance various street and utility infrastructure improvement projects,
the arena remodel and refunding of old debt. The City also issued $73,720 Edina emerald energy
program revenue bonds to finance energy improvement projects for local businesses.
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 position presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
Management’s Discussion and Analysis (Continued)
12
The statement of activities presents information showing how the City’s net position changed during
the most recent fiscal year. All changes in net position 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, arena 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, debt service fund,
construction fund and all of its special revenue funds and proprietary funds. A budgetary
comparison statement has been provided for the general fund, debt service fund,
construction fund and all the special revenue funds to demonstrate compliance with these
budgets.
Proprietary funds. The City maintains five 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, golf course and arena operations.
Management’s Discussion and Analysis (Continued)
13
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 position may serve over time as a useful indicator of a government's financial
position. In the case of the City, assets exceeded liabilities by $210,481,664 at the close of the most
recent fiscal year.
The largest portion of the City's net position ($142,410,536 or 68%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2012 2011 2012 2011 2012 2011
Current and
other assets67,930,449$ 66,717,049$ 26,181,646$ 26,001,510$ 94,112,095$ 92,718,559$
Capital assets135,922,566 134,804,379 97,044,842 83,474,196 232,967,408 218,278,575
Total assets203,853,015$ 201,521,428$ 123,226,488$ 109,475,706$ 327,079,503$ 310,997,134$
Long-term liabilities
outstanding57,536,627$ 61,858,058$ 35,799,997$ 31,119,126$ 93,336,624$ 92,977,184$
Other liabilities14,868,386 12,158,427 8,392,829 7,929,707 23,261,215 20,088,134
Total liabilities72,405,013$ 74,016,485$ 44,192,826$ 39,048,833$ 116,597,839$ 113,065,318$
Net position:
Net investment in
capital assets78,644,392$ 75,045,018$ 63,766,144$ 56,877,100$ 142,410,536$ 131,922,118$
Restricted23,215,910 22,915,776 876,909 623,099 24,092,819 23,538,875
Unrestricted29,587,700 29,544,149 14,390,609 12,926,674 43,978,309 42,470,823
Total net position131,448,002$ 127,504,943$ 79,033,662$ 70,426,873$ 210,481,664$ 197,931,816$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net position ($24,092,819) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position
($43,978,309) 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 position reported, both for the government as a whole, as well as for its separate governmental
and business-type activities. The same situation held true for the prior fiscal year.
There was also an increase of $1,507,486 in unrestricted net position, largely due to positive
operating results in the Utility fund and a large new assessment for the Minnehaha Woods
neighborhood reconstruction project.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $12,549,848 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2012 2011 2012 2011 2012 2011
Revenues:
Program revenues:
Charges for services8,606,777$ 7,733,906$ 39,039,592$ 36,892,116$ 47,646,369$ 44,626,022$
Operating grants and
contributions1,685,026 1,392,892 1,042,195 135,428 2,727,221 1,528,320
Capital grants and
contributions9,137,011 5,770,912 - - 9,137,011 5,770,912
General revenues:
Property taxes25,884,662 25,040,871 - - 25,884,662 25,040,871
Other taxes4,352,465 4,805,505 - - 4,352,465 4,805,505
Gain on disposal
of assets- 131,365 2,644,854 - 2,644,854 131,365
Unrestricted investment
earnings341,986 601,250 113,177 280,438 455,163 881,688
Total revenues50,007,927 45,476,701 42,839,818 37,307,982 92,847,745 82,784,683
Expenses:
General government12,598,979 7,013,231 - - 12,598,979 7,013,231
Public safety16,598,423 16,024,575 - - 16,598,423 16,024,575
Public works9,437,285 9,193,336 - - 9,437,285 9,193,336
Parks5,904,724 5,540,585 - - 5,904,724 5,540,585
Interest on long-term debt2,222,392 2,339,370 - - 2,222,392 2,339,370
Utilities- - 12,610,875 12,130,685 12,610,875 12,130,685
Liquor- - 11,740,744 11,727,106 11,740,744 11,727,106
Aquatic center- - 866,944 718,027 866,944 718,027
Golf course- - 3,293,192 3,390,949 3,293,192 3,390,949
Arena- - 2,182,200 1,773,456 2,182,200 1,773,456
Community activity
centers- - 2,842,139 2,914,460 2,842,139 2,914,460
Total expenses 46,761,803 40,111,097 33,536,094 32,654,683 80,297,897 72,765,780
Increase in net position
before transfers3,246,124 5,365,604 9,303,724 4,653,299 12,549,848 10,018,903
Transfers696,935 694,206 (696,935) (694,206) - -
Increase in net position3,943,059 6,059,810 8,606,789 3,959,093 12,549,848 10,018,903
Net position - January 1127,504,943 121,445,133 70,426,873 66,467,780 197,931,816 187,912,913
Net position - December 31131,448,002$ 127,504,943$ 79,033,662$ 70,426,873$ 210,481,664$ 197,931,816$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities increased the City's net position by $3,943,059, accounting for 31% of the
total growth in net position. Key elements of this increase are as follows:
Property tax revenues; including tax increments collected, increased by $843,791 (3.4%)
during the year, which is more than the property tax levy increase of 1.8% outlined in our
2012 budget due to improved collection rate.
The City also collected $3,536,935 in tax increments, which were used to pay principal and
interest on tax increment debt. This increases net position because debt principal payments
are not expensed on the Statement of Activities.
The debt service fund paid a total of $6,620,000 in principal payments during 2012, including
the tax increment debt.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services
17%
Operating grants and contributions
3%
Capital grants and contributions
18%
Property taxes
52%
Other taxes
9%
Other1%
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)
17
Business-type Activities
Business-type activities increased net position by $8,606,789 accounting for 69% of the City's growth
in net position. Key elements of the current year increase are as follows:
The utility fund had income before transfers of $5,408,569 for 2012. 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 $696,935 to governmental activities during
2012 to provide cash flow for operational and capital improvement needs.
Charges for
services
91.1%
Operating grants
and
contributions
2.4%
Other
6.4%
Revenues by Source -Business-type Activities
-
2
4
6
8
10
12
14
16
18
UtilitiesLiquorAquatic
center
Golf courseArenaCommunity
activity
centers
Millions
Expenses and Program Revenues -Business-type
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
18
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 $47,648,857, a decrease of $1,257,882 in comparison with the prior year. Approximately
25% of this total amount ($11,902,462) constitutes unassigned fund balance. The remainder of the
fund balance is 1) nonspendable due to prepaid items ($413,200), 2) restricted by external creditors,
grantors, laws or regulations ($26,530,228), or 3) assigned by internal constraints ($8,802,967).
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 $11,902,462. As a measure of the general fund’s
liquidity, unassigned fund balance represents 40% of total general fund expenditures.
The fund balance of the City’s general fund increased by $1,365,918 during the current fiscal year.
Key factors in this increase are as follows:
Total general fund revenues were $1,989,583 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 16.3% in the
current fiscal year after a 13% and 14.5% increase in 2011 and 2010, respectively.
Total general fund expenditures were $918,730 under budget. Much of this savings occurred
in the street maintenance and police protection departments, which spent less than budgeted
on salaries and benefits due to position openings.
The liquor fund transferred $765,100 of profits to the general fund, as planned in the 2012
budget.
Transfers out of the general fund totaled $1,542,395 for a variety of purposes planned as part
of the 2012 budget process.
The Housing and Redevelopment Authority fund balance decreased by $3,993,983 in the current
fiscal year because there was a large amount spent on the Southdale 2 Tax Increment Financing
District from tax increment funds during the year.
The debt service fund has a total fund balance of $9,704,408, 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 $1,636,225. Fund balance increased during the year as a result of the issuance of
$1,990,000 in refunding bonds, which will be used to retire outstanding principal on 2007C bonds in
2013.
The construction fund balance decreased by $267,130 in 2012 due to capital outlay related to various
projects. Also, new debt was issued in 2012 to help finance various street improvement projects.
Management’s Discussion and Analysis (Continued)
19
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 position of the utility fund at the end of the year amounted to $12,111,191. The total
growth in net position was $5,308,569. Operating revenues and expenses in the utilities fund
increased by 11.7% and 3.3%, respectively, in 2012, due to rate increases and a very dry 2012
summer and fall that led to increased water sales for irrigation that are intended to help replace aging
infrastructure. The City invested $14,089,138 in utility fund capital assets during 2012.
Unrestricted net position of the liquor fund at the end of the year amounted to $1,525,219. Total net
position increased by $170,097. 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 $1,320,100 to other funds during 2012. The majority of this amount
($765,100) was transferred to the general fund according to the budget.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $702,703.
Aquatic center revenues increased by 9.7% from 2011 due to more favorable weather for the aquatic
center in 2012. The aquatic center remains profitable.
Unrestricted net position of the golf course fund at the end of the year amounted to $209,225, an
increase of $1,620,906 from the prior year. Unrestricted net position had 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 and declining rounds played at the City’s courses. The
large increase in 2012 is the result of insurance proceeds received for the collapse of the golf dome
which will be spent in 2013 to rebuild the structure.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of
($2,749,659), a decrease of $2,711,917 from the prior year. The large decrease in 2012 is the result
of debt issued to fund the remodel of the arena and unexpected repairs for a chiller that
malfunctioned causing the ice to melt late in the year.
General Fund Budgetary Highlights
During the year there was a $1,542,395 increase in appropriations between the original and final
amended budget. The increase was a transfer to the construction and arena funds of unassigned
general fund balance according to the City’s fund balance policy.
During the year, revenues were $1,989,583 more than budget, as the improving economy affected
our permits and charges for services revenues, which exceeded budget by $624,941. There was also
$702,100 in parkland dedication revenue that was unbudgeted in 2012.
Many City departments were under budget for the year, particularly the street maintenance,
engineering, and police protection departments, which were under staffed during the year because
positions that came open were not immediately filled. The City also saved money by beginning the
replacement of fluorescent light bulbs with light-emitting diode (LED) bulbs.
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, 2012, amounted to $232,967,408 (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 6.7 percent (a .8 percent increase for governmental activities and a 16.3 percent increase for
business-type activities).
Management’s Discussion and Analysis (Continued)
20
Major capital asset events during the current fiscal year included the following:
The City completed construction on a new public works facility in 2012; total construction cost
was $22,304,549.
A variety of street construction, sidewalk and traffic signal projects began in 2012.
The City continued construction on new water treatment plant #6, construction in progress as
of the close of the fiscal year has reached $6,803,875.
A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer, construction in progress as of the close of the fiscal year reached $15,738,896 which
includes water treatment plant #6.
The City completed construction on the flowrider at the aquatic center; total construction cost
was $1,293,377.
Renovations started on the arena addition known as the “Hornet’s Nest” in 2012, construction
in progress as of the close of the fiscal year has reached $3,837,046.
City of Edina’s Capital Assets
(Net of Depreciation)
2012 2011 2012 2011 2012 2011
Land and land
improvements24,052,302$ 24,630,058$ 5,258,708$ 4,281,650$ 29,311,010$ 28,911,708$
Easements111,000 111,000 - - 111,000 111,000
Buildings and
improvements56,786,838 36,293,919 7,365,467 7,757,607 64,152,305 44,051,526
Machinery and equipment7,104,264 7,561,749 2,786,411 2,334,264 9,890,675 9,896,013
Infrastructure42,197,555 32,901,599 61,707,121 54,318,904 103,904,676 87,220,503
Construction in progress5,670,607 33,306,054 19,927,135 14,781,771 25,597,742 48,087,825
Total135,922,566$ 134,804,379$ 97,044,842$ 83,474,196$ 232,967,408$ 218,278,575$
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 $99,703,720, an increase of $4,253,720 from 2011. This increase resulted from the
payment of previously scheduled principal payments offset by $13,753,720 in new debt issued.
$27,680,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount decreased from 2011 due to regularly scheduled principal
payments made during the year.
$21,550,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount increased from 2011 due to a new debt issue to finance the cost
of various improvement projects.
An additional $550,000 of general obligation tax increment debt financed the City’s economic
development program. This amount decreased in 2012 due to regularly scheduled principal payments
on outstanding issues.
Also outstanding is $11,865,000 public project revenue bonds which financed two gymnasiums and
the new public works facility. This amount decreased in 2012 due to regularly scheduled principal
payments on outstanding issues.
There is a total of $37,985,000 in revenue bonds for improvements to the enterprise funds. This
amount increased $6,135,000 during the year due to issuance of new bonds to finance the cost of
various utility infrastructure improvements and the renovation of the arena.
Management’s Discussion and Analysis (Continued)
21
City of Edina’s Outstanding Debt
2012 2011 2012 2011 2012 2011
Tax increment bonds550,000$ 2,480,000$ -$ -$ 550,000$ 2,480,000$
General obligation bonds27,680,000 29,700,000 - - 27,680,000 29,700,000
Public improvement bonds21,550,000 18,260,000 - - 21,550,000 18,260,000
Public project revenue bonds11,865,000 13,160,000 - - 11,865,000 13,160,000
Edina emerald energy program bonds73,720 - - - 73,720 -
Revenue bonds- - 37,985,000 31,850,000 37,985,000 31,850,000
Total61,718,720$ 63,600,000$ 37,985,000$ 31,850,000$ 99,703,720$ 95,450,000$
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 $270,766,953. Only $39,545,000 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 2012 was 4.56%, 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-nine percent of students graduate, with ninety-four
percent pursuing some sort of post-secondary education.
Property values in Edina increased at a rapid pace for several years through 2006, but values have
declined since then. Estimated market value of real estate actually decreased 2.5% for taxes payable
in 2012.
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2003200420052006200720082009201020112012
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
Management’s Discussion and Analysis (Continued)
22
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 2.3% for taxes payable in 2012, 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 are rising slightly.
All of these factors above were considered in preparing the City’s budget for the 2013 fiscal year. The
City’s adopted 2013 budget includes a property tax levy of $26,747,384 for all funds, an increase of
1.9% from the 2012 levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2012
GovernmentalBusiness-type
Activities Activities Total
Assets:
Current assets:
Cash and cash equivalents363,726$ 172,814$ 536,540$
Investments43,961,063 11,890,173 55,851,236
Restricted investments4,971,168 5,833,610 10,804,778
Accrued interest 159,830 54,576 214,406
Accounts receivable, net655,503 5,944,577 6,600,080
Special assessments receivable14,177,696 529,686 14,707,382
Internal balances(236) 236 -
Due from other governments792,265 3,685 795,950
Prepaid items413,200 353,560 766,760
Inventory - 1,169,003 1,169,003
Total current assets65,494,215 25,951,920 91,446,135
Noncurrent assets:
Deferred charges851,769 229,726 1,081,495
Investment in joint powers agreement1,584,465 - 1,584,465
Nondepreciable capital assets 21,762,971 21,016,100 42,779,071
Depreciable capital assets (net)114,159,595 76,028,742 190,188,337
Total noncurrent assets138,358,800 97,274,568 235,633,368
Total assets203,853,015 123,226,488 327,079,503
Liabilities:
Current liabilities:
Accounts payable 1,513,555 922,495 2,436,050
Salaries payable1,026,149 275,864 1,302,013
Accrued interest payable861,224 389,961 1,251,185
Contracts payable311,659 2,161,258 2,472,917
Due to other governments635,479 180,236 815,715
Deposits payable 28,084 112,216 140,300
Unearned revenue106,496 67,441 173,937
Compensated absences payable1,600,740 333,358 1,934,098
Bonds payable 8,785,000 3,950,000 12,735,000
Total current liabilities14,868,386 8,392,829 23,261,215
Noncurrent liabilities:
Net OPEB obligation1,124,113 137,652 1,261,765
Compensated absences payable2,401,109 500,037 2,901,146
Bonds payable, net 54,011,405 35,162,308 89,173,713
Total noncurrent liabilities57,536,627 35,799,997 93,336,624
Total liabilities72,405,013 44,192,826 116,597,839
Net position:
Net investment in capital assets78,644,392 63,766,144 142,410,536
Restricted for tax increments11,641,291 - 11,641,291
Restricted for debt service9,704,408 876,909 10,581,317
Restricted for parkland dedication880,395 - 880,395
Restricted for police special revenue658,002 - 658,002
Restricted for braemar golf donations331,814 - 331,814
Unrestricted29,587,700 14,390,609 43,978,309
Total net position131,448,002$ 79,033,662$ 210,481,664$
Primary Government
The accompanying notes are an integral part of these financial statements
23
CITY OF EDINA, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2012
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government12,598,979$ 1,142,984$ 348,314$ -$
Public safety16,598,423 6,549,929 831,692 -
Public works9,437,285 461,708 387,318 8,427,800
Parks5,904,724 452,156 16,153 709,211
Interest on long-term debt2,222,392 - 101,549 -
Total government activities46,761,803 8,606,777 1,685,026 9,137,011
Business-type activities:
Utilities12,610,875 17,729,589 236,644 -
Liquor11,740,744 13,230,941 - -
Aquatic center866,944 1,001,946 - -
Golf course3,293,192 3,225,591 - -
Arena2,182,200 1,452,435 795,707 -
Community activity centers2,842,139 2,399,090 9,844 -
Total business-type activities33,536,094 39,039,592 1,042,195 -
Total primary government80,297,897$ 47,646,369$ 2,727,221$ 9,137,011$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
GovernmentalBusiness-type
ActivitiesActivitiesTotal
(11,107,681)$ -$ (11,107,681)$
(9,216,802) - (9,216,802)
(160,459) - (160,459)
(4,727,204) - (4,727,204)
(2,120,843) - (2,120,843)
(27,332,989) - (27,332,989)
- 5,355,358 5,355,358
- 1,490,197 1,490,197
- 135,002 135,002
- (67,601) (67,601)
- 65,942 65,942
- (433,205) (433,205)
- 6,545,693 6,545,693
(27,332,989) 6,545,693 (20,787,296)
General revenues:
Property taxes25,884,662 - 25,884,662
Tax increment collections3,536,935 - 3,536,935
Franchise taxes815,530 - 815,530
Unrestricted investment earnings341,986 113,177 455,163
Gain on disposal of capital assets- 2,644,854 2,644,854
Transfers696,935 (696,935) -
Total general revenues and transfers31,276,048 2,061,096 33,337,144
Change in net position3,943,059 8,606,789 12,549,848
Net position - beginning127,504,943 70,426,873 197,931,816
Net position - ending131,448,002$ 79,033,662$ 210,481,664$
Net (Expense) Revenue and
Changes in Net Position
25
This page left blank intentionally.
26
CITY OF EDINA, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2012
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityService ConstructionFundsFunds
Assets
Cash and cash equivalents-$ 38,674$ -$ -$ 325,052$ 363,726$
Unrestricted investments14,855,817 13,349,900 7,180,315 8,084,453 490,578 43,961,063
Restricted investments- - 2,211,705 2,759,463 - 4,971,168
Accrued interest 48,208 53,116 13,499 44,411 596 159,830
Accounts receivable614,813 - - 39,476 1,214 655,503
Special assessments
receivable- - 13,274,971 902,725 - 14,177,696
Due from other funds264,430 - 266,005 - 149,323 679,758
Due from other governments427,408 11,179 62,561 267,563 23,554 792,265
Prepaid items413,200 - - - - 413,200
Total assets16,623,876$ 13,452,869$ 23,009,056$ 12,098,091$ 990,317$ 66,174,209$
Liabilities and fund balances
Liabilities:
Accounts payable617,218$ 630,217$ 2,925$ 262,694$ 501$ 1,513,555$
Salaries payable1,017,429 4,623 - 4,097 - 1,026,149
Contracts payable - - - 311,659 - 311,659
Due to other funds- - - 679,994 - 679,994
Due to other governments13,596 621,883 - - - 635,479
Deposits payable15,159 - - 12,925 - 28,084
Unearned revenue106,496 - - - - 106,496
Deferred revenue14,844 - 13,301,723 907,369 - 14,223,936
Total liabilities1,784,742 1,256,723 13,304,648 2,178,738 501 18,525,352
Fund balance:
Nonspendable413,200 - - - - 413,200
Restricted880,395 12,196,146 9,704,408 2,759,463 989,816 26,530,228
Assigned1,643,077 - - 7,159,890 - 8,802,967
Unassigned11,902,462 - - - - 11,902,462
Total fund balance14,839,134 12,196,146 9,704,408 9,919,353 989,816 47,648,857
Total liabilities and
fund balances16,623,876$ 13,452,869$ 23,009,056$ 12,098,091$ 990,317$ 66,174,209$
Fund balance reported above 47,648,857$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources, and therefore,
are not reported in the funds 135,922,566
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 14,223,936
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.(67,931,822)
Net position of governmental activities 131,448,002$
The accompanying notes are an integral part of these financial statements.
27
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2012
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes21,269,249$ -$ 3,593,370$ 975,803$ -$ 25,838,422$
Tax increment collections- 3,536,935 - - - 3,536,935
Franchise taxes771,293 - - 44,237 - 815,530
Special assessments- - 2,521,001 2,454,640 - 4,975,641
License and permits3,126,541 - - 28,810 - 3,155,351
Intergovernmental904,437 - 101,549 947,073 79,907 2,032,966
Charges for services3,651,098 - - 57,384 - 3,708,482
Fines and forfeitures1,083,834 - - - 111,220 1,195,054
Investment income17,659 160,098 23,894 136,986 3,349 341,986
Rental of property506,276 - - - - 506,276
Parkland dedication702,100 - - - - 702,100
Other revenues40,162 - - 197,746 2,933 240,841
Total revenues32,072,649 3,697,033 6,239,814 4,842,679 197,409 47,049,584
Expenditures:
Current:
General government5,369,348 708,838 - 529,844 16,543 6,624,573
Public safety14,738,781 - - 73,266 173,021 14,985,068
Public works6,051,946 - - 225,560 - 6,277,506
Parks3,769,361 - - 76,142 6,757 3,852,260
Capital outlay:
General government- 5,000,000 - 463,495 - 5,463,495
Public safety- - - 738,957 - 738,957
Public works- - - 6,987,231 - 6,987,231
Parks- 3,733 - 429,027 - 432,760
Debt service:
Bond principal - - 6,620,000 - - 6,620,000
Interest and fiscal charges- - 2,292,394 - - 2,292,394
Total expenditures29,929,436 5,712,571 8,912,394 9,523,522 196,321 54,274,244
Revenues over
(under) expenditures2,143,213 (2,015,538) (2,672,580) (4,680,843) 1,088 (7,224,660)
Other financing sources (uses):
Transfers in765,100 - 1,978,445 1,752,395 - 4,495,940
Transfers out(1,542,395) (1,978,445) - (278,165) - (3,799,005)
Sale of capital assets- - - 94,975 - 94,975
Bonds issued- - 109,001 2,639,719 - 2,748,720
Refunding bonds issued- - 1,990,000 - - 1,990,000
Premium (discounts) on
bonds issued- - 231,359 204,789 - 436,148
Total other financing
sources (uses)(777,295) (1,978,445) 4,308,805 4,413,713 - 5,966,778
Net increase (decrease)
in fund balance1,365,918 (3,993,983) 1,636,225 (267,130) 1,088 (1,257,882)
Fund balance - January 113,473,216 16,190,129 8,068,183 10,186,483 988,728 48,906,739
Fund balance - December 3114,839,134$ 12,196,146$ 9,704,408$ 9,919,353$ 989,816$ 47,648,857$
The accompanying notes are an integral part of these financial statements.
28
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, 2012
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)(1,257,882)$
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.1,326,762
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 position
differs from the change in fund balance by the net book value of the
capital assets sold.(208,575)
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.2,958,343
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 position. 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.1,468,651
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.(344,240)
Change in net position of governmental activities (page 23)3,943,059$
The accompanying notes are an integral part of these financial statements.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Assets:
Current assets:
Cash and cash equivalents8,803$ -$ -$ -$ -$ 164,011$ 172,814$
Unrestricted investments9,155,391 - - - - 2,734,782 11,890,173
Restricted investments3,517,556 - - - 2,316,054 - 5,833,610
Interest receivable43,256 - - - - 11,320 54,576
Accounts receivable, net3,884,494 - - 1,917,285 135,238 7,560 5,944,577
Special assessments receivable529,686 - - - - - 529,686
Due from other funds- 1,308,584 - 546,509 - 33,268 1,888,361
Due from other governments3,685 - - - - - 3,685
Prepaid expenses353,560 - - - - - 353,560
Inventory 6,475 1,082,275 - 69,458 - 10,795 1,169,003
Total current assets17,502,906 2,390,859 - 2,533,252 2,451,292 2,961,736 27,840,045
Noncurrent assets:
Advances to other funds- - 1,000,000 - - - 1,000,000
Deferred charges161,393 - 4,214 - 64,119 - 229,726
Net capital assets79,100,133 1,425,155 2,465,104 4,215,716 8,006,282 1,832,452 97,044,842
Total noncurrent assets79,261,526 1,425,155 3,469,318 4,215,716 8,070,401 1,832,452 98,274,568
Total assets96,764,432 3,816,014 3,469,318 6,748,968 10,521,693 4,794,188 126,114,613
Liabilities:
Current liabilities:
Accounts payable203,173 338,001 1,180 1,367 325,632 53,142 922,495
Salaries payable60,236 68,851 423 40,990 40,618 64,746 275,864
Accrued interest payable346,952 - 5,940 3,069 34,000 - 389,961
Contracts payable1,129,677 13,233 - 72,178 884,770 61,400 2,161,258
Due to other funds- - 293,968 - 1,594,157 - 1,888,125
Due to other governments9,369 153,044 - 1,577 5,031 11,215 180,236
Deposits payable112,216 - - - - - 112,216
Unearned revenue- 8,118 - 49,558 - 9,765 67,441
Compensated absences payable 53,715 104,146 - 97,975 19,931 57,591 333,358
Bonds payable - current 3,400,000 - 140,000 310,000 100,000 - 3,950,000
Total current liabilities5,315,338 685,393 441,511 576,714 3,004,139 257,859 10,280,954
Noncurrent liabilities:
Net OPEB obligation39,642 24,027 - 33,442 14,981 25,560 137,652
Compensated absences payable80,572 156,220 - 146,962 29,896 86,387 500,037
Bonds payable, net of
unamortized discounts29,760,119 - 322,160 - 5,080,029 - 35,162,308
Advances from other funds- - - 1,000,000 - - 1,000,000
Total noncurrent liabilities29,880,333 180,247 322,160 1,180,404 5,124,906 111,947 36,799,997
Total liabilities35,195,671 865,640 763,671 1,757,118 8,129,045 369,806 47,080,951
Net position:
Net investment in capital assets49,457,570 1,425,155 2,002,944 3,905,716 5,142,307 1,832,452 63,766,144
Restricted for debt service- - - 876,909 - - 876,909
Unrestricted12,111,191 1,525,219 702,703 209,225 (2,749,659) 2,591,930 14,390,609
Total net position61,568,761$ 2,950,374$ 2,705,647$ 4,991,850$ 2,392,648$ 4,424,382$ 79,033,662$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
30
CITY OF EDINA, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2012
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Operating revenues:
Sales - liquor-$ 12,976,196$ -$ 161,040$ -$ -$ 13,137,236$
Sales - retail- 254,745 1,849 230,120 1,736 36,929 525,379
Sales - utilities17,295,304 - - - - - 17,295,304
Sales - concessions- - 124,275 223,775 85,145 149,383 582,578
Memberships- - 472,166 88,555 3,926 78,089 642,736
Admissions- - 360,786 70,049 110,497 646,399 1,187,731
Building rental- - 42,870 74,215 1,130,057 279,098 1,526,240
Rental of equipment- - - 359,484 2,468 126,684 488,636
Greens fees- - - 1,661,982 - 183,873 1,845,855
Other fees427,799 - - 356,371 118,606 898,635 1,801,411
Total operating revenues 17,723,103 13,230,941 1,001,946 3,225,591 1,452,435 2,399,090 39,033,106
Operating expenses:
Cost of sales and services11,141 9,615,928 34,996 347,752 37,825 71,551 10,119,193
Personal services1,536,352 1,343,780 324,705 1,574,394 676,340 1,577,361 7,032,932
Contractual services6,139,662 443,705 217,171 489,372 854,957 543,182 8,688,049
Commodities833,528 61,760 48,694 344,549 102,162 281,729 1,672,422
Central Services622,573 205,216 18,347 134,496 40,710 141,805 1,163,147
Depreciation2,668,212 70,015 210,424 395,953 387,375 226,511 3,958,490
Total operating expenses 11,811,468 11,740,404 854,337 3,286,516 2,099,369 2,842,139 32,634,233
Operating income (loss)5,911,635 1,490,537 147,609 (60,925) (646,934) (443,049) 6,398,873
Nonoperating revenues (expenses):
Intergovernmental236,644 - - - - - 236,644
Investment income46,984 - - - 139 66,054 113,177
Donations- - - - 795,707 9,844 805,551
Interest and fiscal charges(841,890) - (12,014) (6,229) (81,767) - (941,900)
Amortization of bond deferred
charges (discounts)42,483 - (593) (447) (1,064) - 40,379
Gain (loss) on sale of capital
asset, net of recoveries6,227 - - 2,623,627 15,000 - 2,644,854
Miscellaneous 6,486 (340) - - - - 6,146
Total nonoperating
revenues (expenses)(503,066) (340) (12,607) 2,616,951 728,015 75,898 2,904,851
Income (loss) before transfers5,408,569 1,490,197 135,002 2,556,026 81,081 (367,151) 9,303,724
Transfers:
Transfers in- - - 100,000 289,903 333,262 723,165
Transfers out(100,000) (1,320,100) - - - - (1,420,100)
Total transfers (100,000) (1,320,100) - 100,000 289,903 333,262 (696,935)
Change in net position5,308,569 170,097 135,002 2,656,026 370,984 (33,889) 8,606,789
Net position - January 1 56,260,192 2,780,277 2,570,645 2,335,824 2,021,664 4,458,271 70,426,873
Net position - December 3161,568,761$ 2,950,374$ 2,705,647$ 4,991,850$ 2,392,648$ 4,424,382$ 79,033,662$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
31
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2012
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Cash flows from operating activities:
Receipts from customers and users17,492,324$ 13,232,328$ 1,001,946$ 3,237,282$ 1,429,294$ 2,402,412$ 38,795,586$
Payment to suppliers(7,554,473) (10,205,660) (318,769) (1,355,647) (748,578) (1,058,032) (21,241,159)
Payment to employees(1,550,826) (1,322,226) (324,282) (1,569,513) (704,648) (1,544,818) (7,016,313)
Donations received- - - - 795,707 9,844 805,551
Miscellaneous received6,486 (340) - - - - 6,146
Net cash provided by
(used in) operating activities8,393,511 1,704,102 358,895 312,122 771,775 (190,594) 11,349,811
Cash flows from noncapital financing activities:
State grant236,644 - - - - - 236,644
Transfer from other funds- - - 100,000 289,903 333,262 723,165
Transfer to other funds(100,000) (1,320,100) - - - - (1,420,100)
Proceeds from interfund borrowing- 1,208,710 655,330 - 1,615,025 136,434 3,615,499
Payment of interfund borrowing(751,547) (1,308,584) - (630,756) - (33,268) (2,724,155)
Net cash provided by (used in)
noncapital financing activities(614,903) (1,419,974) 655,330 (530,756) 1,904,928 436,428 431,053
Cash flows from capital and related financing activities:
Proceeds from capital debt6,782,354 - - - 2,908,350 - 9,690,704
Acquisition of capital assets(14,089,138) (284,128) (865,874) (233,670) (3,077,180) (106,862) (18,656,852)
Proceeds from sale
of capital assets6,227 - - 746,355 15,000 - 767,582
Principal paid on bonds(2,360,000) - (135,000) (285,000) (100,000) - (2,880,000)
Interest and fiscal charges paid on bonds(855,996) - (13,351) (9,051) (123,051) - (1,001,449)
Net cash provided by (used in)
capital and related
financing activities(10,516,553) (284,128) (1,014,225) 218,634 (376,881) (106,862) (12,080,015)
Cash flows from investing activities:
Proceeds from sale of investments6,685,000 - - - - (67,700) 6,617,300
Purchase of investments(3,953,921) - - - (2,316,054) - (6,269,975)
Interest received15,669 - - - 139 67,700 83,508
Net cash flows provided by
(used in) investing activities2,746,748 - - - (2,315,915) - 430,833
Net increase (decrease)
in cash and cash equivalents8,803 - - - (16,093) 138,972 131,682
Cash and cash equivalents -
January 1- - - - 16,093 25,039 41,132
Cash and cash equivalents -
December 318,803$ -$ -$ -$ -$ 164,011$ 172,814$
Business-type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
32
CITY OF EDINA, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2012
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Business-type Activities - Enterprise Funds
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) 5,911,635$ 1,490,537$ 147,609$ (60,925)$ (646,934)$ (443,049)$ 6,398,873$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation2,668,212 70,015 210,424 395,953 387,375 226,511 3,958,490
Donations- - - - 795,707 9,844 805,551
Miscellaneous revenue (expense)6,486 (340) - - - - 6,146
Changes in assets and liabilities:
Decrease (increase) in receivables(217,105) - - - (23,141) 1,692 (238,554)
Decrease (increase) in
special assessments(16,427) - - - - - (16,427)
Decrease (increase) in
due from other governments2,753 - - - - - 2,753
Decrease (increase) in inventory12,250 (55,257) - 11,034 - 1,530 (30,443)
Decrease (increase) in
prepaid expenses115 - - - - - 115
Increase (decrease) in
accounts payable40,340 77,764 442 (46,961) 285,290 (21,450) 335,425
Increase (decrease) in
salaries payable(2,167) 5,766 423 (8,979) 9,578 11,594 16,215
Increase (decrease) in
due to other governments(274) 98,442 (3) (3,551) 1,786 155 96,555
Increase (decrease) in
unearned revenue- 1,387 - 11,691 - 1,630 14,708
Increase (decrease) in
net OPEB obligation4,634 3,433 - 4,616 2,680 2,509 17,872
Increase (decrease) in
compensated absences(16,941) 12,355 - 9,244 (40,566) 18,440 (17,468)
Total adjustments2,481,876 213,565 211,286 373,047 1,418,709 252,455 4,950,938
Net cash provided by
(used in) operating activities8,393,511$ 1,704,102$ 358,895$ 312,122$ 771,775$ (190,594)$ 11,349,811$
Noncash investing activities:
Increase (decrease) in
fair value of investments675 - - - - (32,053) (31,378)
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable1,856,376 (13,233) 262,908 (72,178) (884,770) (61,400) 1,087,703
Increase in accounts receivable related
to insurance recoveries- - - 1,917,285 - - 1,917,285
The accompanying notes are an integral part of these financial statements.
33
CITY OF EDINA, MINNESOTA
STATEMENT OF FIDUCIARY NET POSITION
AGENCY FUNDS
December 31, 2012
Agency Funds
Assets
Cash 66,958$
Investments 250,000
Total assets 316,958$
Liabilities
Accounts payable 45,646$
Salaries payable 7,815
Due to other governmental units 263,497
Total liabilities 316,958$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
35
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Edina (the City) was incorporated in 1888 and operates under the State of Minnesota
Statutory Plan B form of government. The governing body consists of a five-member City Council
elected by voters of the City.
The financial statements of the City have been prepared in conformity with accounting principles
generally accepted in the United States of America (generally accepted accounting principles) as
applied to governmental units by the Governmental Accounting Standards Board (GASB). The
following is a summary of significant accounting policies.
A. FINANCIAL REPORTING ENTITY
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 position and the
statement of activities) 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, 2012
36
The statement of activities demonstrates the degree to which the direct expenses of a
given function or business-type activity are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or business-type activity.
Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or
business-type activity and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or business type activity.
Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements. Aggregated
information for the remaining nonmajor governmental and enterprise funds is reported in
a single column in the fund financial statements
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. The City’s only fiduciary fund type, agency funds, are
custodial in nature and do not have a measurement focus. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments are recorded only when payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services
and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other
revenue items are considered to be measurable and available only when cash is received
by the City.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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 restricted 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 restricted 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.
The arena fund accounts for the operation of the City’s ice arena.
Additionally, the City reports the following fund type:
Agency - the police seizure and Public Safety Training Facility funds account for fees
collected for other government agencies and the payroll fund accounts for payroll
deductions withheld from employee paychecks but not yet sent to the appropriate
party (includes federal and state taxes, health care deductions, etc).
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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, 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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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,
2012 are planned to be eliminated in 2013. Interfund receivables and payables at
December 31, 2012 that are not expected to be eliminated in 2013 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.
GOVERNMENTAL FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and
available to finance expenditures of the current period. In practice, current and
delinquent taxes and State credits received by the City in July, December and
January are recognized as revenue for the current year. Taxes collected by the
County by December 31 (remitted to the City the following January) and taxes
and credits not received at the year-end are classified as delinquent and due
from County taxes receivable. The portion of delinquent taxes not collected by
the City in January are fully offset by deferred revenue because they are not
available to finance current expenditures.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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. The following is
a breakdown of special assessments receivable at December 31, 2012:
Enterprise
Funds
Debt
ServiceConstructionUtilities
Special assessments receivable
Delinquent$34,927$2,295$322,904
Deferred13,240,044900,430206,782
Total$13,274,971$902,725$529,686
Governmental Funds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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 and
are recorded as expenses when consumed.
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 are 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
Capital assets that are not depreciated include land, easements, and construction in
progress.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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 generally accepted
accounting principles 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 position. 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, 2012
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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. In the fund
balance policy, authority to assign amounts for specific purposes is limited to 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 POSITION
In the government-wide financial statements, net position represents the difference
between assets and liabilities. Net position is displayed in three components:
Net investment in capital assets - 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 position – Consists of net position 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 position – All other net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
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, 2012
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O. CHANGE IN ACCOUNTING PRINCIPLE
For the fiscal year ended December 31, 2012, the City implemented Governmental
Accounting Standards (GASB) Statement No. 63, “Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of Resources, and Net Position.” This statement
changed how governmental entities present a statement of net position, adding two new
basic financial statement elements, and replacing “net assets” with “net position” as the
terminology used to describe the difference between the other four elements. The two
basic financial statement elements added are “deferred inflows of resources” and
“deferred outflows of resources.” These new elements are differentiated from assets
(deferred outflows of resources) and liabilities (deferred inflows from resources), but have
similar effects on net position.
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
POSITION
The governmental fund balance sheet includes a reconciliation between fund balance
– total governmental funds and net position – governmental activities as reported in
the government-wide statement of net position. 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 payable61,718,720$
Plus: issuance premium1,327,761
Less: issuance discount(250,076)
Less: deferred charges(851,769)
Accrued interest payable861,224
OPEB obligation1,124,113
Compensated absences4,001,849
Net adjustment to reduce fund balance - total
governmental funds to arrive at net position -
governmental activities67,931,822$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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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 position of governmental activities as
reported in the government-wide statement of activities. One element of that
reconciliation explains that “Governmental funds report capital outlays as
expenditures. However, in the statement of activities the cost of those assets are
allocated over their estimated useful lives and reported as depreciation expense.”
The details of this difference are as follows:
Capital outlay8,312,941$
Depreciation expense(6,986,179)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental funds1,326,762$
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 position.
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 bonds4,665,000$
Less deferred charges(23,519)
Less discounts(14,275)
Plus premiums450,423
Issuance of Edina emerald energy program revenue bonds73,720
Principal repayments:
Tax increment debt(1,930,000)
General obligation debt(2,020,000)
Permanent improvement revolving debt(1,375,000)
Public project revenue debt(1,295,000)
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities(1,468,651)$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
46
Another element of that reconciliation states that “Some expenses reported in the
statement of activities do not require the use of current financial resources and
therefore are not reported as expenditures in governmental funds.” The details of this
difference are as follows:
OPEB obligation(216,548)$
Compensated absences(174,175)
Accrued interest65,231
Amortization of deferred charges(101,100)
Amortization of bond discounts and premiums82,352
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities(344,240)$
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits5,318,919$
Cash on hand19,535
Investments62,171,058
67,509,512$
Cash and investments are presented in the financial statements as follows:
Cash and cash equivalents - Statement of Net Position536,540$
Investments - Statement of Net Position55,851,236
Restricted investments - Statement of Net Position10,804,778
Cash and investments - Statement of Fiduciary Net Position316,958
67,509,512$
The City had restricted investments of $10,804,778 as of December 31, 2012 that
represent unspent bond proceeds to be used for construction projects and debt
refunding.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
47
B. DEPOSITS
In accordance with applicable Minnesota Statutes, the City maintains deposits at
depository banks authorized by the City Council, including checking accounts, savings
accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial credit risk – In the case of deposits, this is the risk that in the event of
a bank failure, the City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit
insurance, corporate surety bond, or collateral. The market value of collateral
pledged must equal 110% of the deposits not covered by federal deposit
insurance or corporate surety bonds. Authorized collateral includes treasury bills,
notes, and bonds; issues of U.S. government agencies; general obligations rated
“A” or better; revenue obligations rated “AA” or better; irrevocable standard
letters of credit issued by the Federal Home Loan Bank; and certificates of
deposit. Minnesota Statutes require that securities pledged as collateral be held
in safekeeping in a restricted account at the Federal Reserve Bank or in an
account at a trust department of a commercial bank or other financial institution
that is not owned or controlled by the financial institution furnishing the collateral.
The City’s investment policy does not contain further restrictions on the types of
collateral required.
At year-end, the carrying amount of the City’s deposits was $5,318,919 while the
balance on the bank records was $5,352,902. At December 31, 2012, all
deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
48
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 6 to 10 > 10 Total
U.S. TreasuriesAA+/AaaS&P/Mdy's-$ 74,865$ 360,131$ 578,037$ 1,013,033$
GNMAAA+/AaaS&P/Mdy's- - - 141,180 141,180
SBA NotesAA+/AaaS&P/Mdy's- 117,081 108,406 - 225,487
U.S. AgenciesAA+/AaaS&P/Mdy's6,174,562 6,600,943 8,370,342 2,448,236 23,594,083
Bankers AcceptanceA1/F1S&P/Mdy's4,568,669 - - - 4,568,669
MunicipalsAAA/AaaS&P/Mdy's1,025,750 160,619 - - 1,186,369
MunicipalsAA/Aa3S&P/Mdy's2,000,640 - - - 2,000,640
MunicipalsAA/Aa1S&P/Mdy's- 50,144 - - 50,144
MunicipalsAA+/Aa2S&P/Mdy's- 58,081 - - 58,081
MunicipalsAA+/Aa1S&P/Mdy's1,013,900 590,802 - 1,645,000 3,249,702
MunicipalsAa1Mdy's308,148 - - - 308,148
MunicipalsAa2Mdy's403,312 - - - 403,312
MunicipalsAa3Mdy's397,737 35,467 - - 433,204
MunicipalsAA/Aa2S&P/Mdy's- 1,063,505 - - 1,063,505
MunicipalsAA-/Aa3S&P/Mdy's- 520,333 - - 520,333
Negotiable CD'sN/RN/A12,013,149 950,094 193,216 13,992 13,170,451
27,905,867$ 10,221,934$ 9,032,095$ 4,826,445$ 51,986,341
Money Market*AAAS&P3,463,547
4M Fund*N/RN/A6,721,170
Total investments 62,171,058$
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
exposure by purchasing insured or registered investments, or by the control of
who holds the securities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
49
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 $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 22% in securities issued by FNMA and 7.3% in Bankers Acceptances
with U.S. Bank.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
50
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012 is as follows:
BeginningEnding
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land15,981,364$ -$ -$ 15,981,364$
Easements111,000 - - 111,000
Construction in progress33,306,054 7,330,341 (34,965,788) 5,670,607
Total capital assets not being depreciated49,398,418 7,330,341 (34,965,788) 21,762,971
Capital assets being depreciated:
Land improvements22,550,059 169,193 - 22,719,252
Buildings and structures41,301,045 22,389,491 - 63,690,536
Furniture and office equipment3,625,824 40,173 (24,725) 3,641,272
Vehicles and equipment14,587,071 1,193,504 (837,767) 14,942,808
Infrastructure80,605,965 11,902,070 (1,556,405) 90,951,630
Parks15,386,889 253,957 (10,451) 15,630,395
Total capital assets being depreciated178,056,853 35,948,388 (2,429,348) 211,575,893
Less accumulated depreciation for:
Land improvements(13,901,365) (746,949) - (14,648,314)
Buildings and structures(13,168,083) (1,556,425) - (14,724,508)
Furniture and office equipment(1,928,003) (308,140) 24,725 (2,211,418)
Vehicles and equipment(8,723,143) (1,241,398) 696,143 (9,268,398)
Infrastructure(47,704,366) (2,539,163) 1,489,454 (48,754,075)
Parks(7,225,932) (594,104) 10,451 (7,809,585)
Total accumulated depreciation(92,650,892) (6,986,179) 2,220,773 (97,416,298)
Total capital assets being depreciated, net85,405,961 28,962,209 (208,575) 114,159,595
Governmental activities capital assets, net134,804,379$ 36,292,550$ (35,174,363)$ 135,922,566$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
51
BeginningEnding
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress14,781,771 16,331,313 (11,185,949) 19,927,135
Total capital assets not being depreciated15,870,736 16,331,313 (11,185,949) 21,016,100
Capital assets being depreciated:
Land improvements & golf course8,453,539 1,310,837 - 9,764,376
Buildings and structures19,204,721 274,807 (623,698) 18,855,830
Furniture and office equipment153,303 - - 153,303
Vehicles and equipment6,124,471 983,198 (384,844) 6,722,825
Utility infrastructure86,236,160 9,854,943 - 96,091,103
Lease property capital lease468,580 - (37,966) 430,614
Total capital assets being depreciated120,640,774 12,423,785 (1,046,508) 132,018,051
Less accumulated depreciation for:
Land improvements & golf course(5,260,854) (333,779) - (5,594,633)
Buildings and structures(11,447,114) (663,460) 620,211 (11,490,363)
Furniture and office equipment(126,492) (5,128) - (131,620)
Vehicles and equipment(3,817,018) (489,397) 348,318 (3,958,097)
Utility infrastructure(31,917,256) (2,466,726) - (34,383,982)
Lease property capital lease(468,580) - 37,966 (430,614)
Total accumulated depreciation(53,037,314) (3,958,490) 1,006,495 (55,989,309)
Total capital assets being depreciated, net67,603,460 8,465,295 (40,013) 76,028,742
Business-type activities capital assets, net83,474,196$ 24,796,608$ (11,225,962)$ 97,044,842$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
52
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government541,745$
Public safety1,031,459
Public works3,551,283
Parks1,861,692
Total depreciation expense - governmental activities6,986,179$
Business-type activities:
Utilities2,668,212$
Liquor70,015
Aquatic Center210,424
Golf Course395,953
Arena387,375
Art Center26,287
Edinborough Park161,395
Centennial Lakes38,829
Total depreciation expense - business-type activities3,958,490$
CONSTRUCTION COMMITMENTS
At December 31, 2012, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
ContractRemaining
Project #Project DescriptionAmountCommitment
12-6 EngTransit Livable Communities207,137$ 6,689$
12-2 PKRosland Park Pathway402,870 168,654
12-5 EngTracy Avenue1,346,473 8,705
VariousGolf Dome372,000 308,365
VariousBraemar Arena3,655,647 187,862
12-1 PWWater Meter Replacement3,618,864 1,768,216
2,448,491$
INSURANCE RECOVERY
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. Based on estimates, the
total amount to be paid by the insurance carrier for the Dome collapse is $2,633,453. Of this
amount, the City received $716,168 in 2012 and recorded the remaining $1,917,285 as a
receivable at year end. At the time of the collapse the net book value of the Golf Dome was
$27,330. As a result, a $2,606,123 gain on sale of capital asset, net of recoveries was recorded.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
53
Note 5 LONG-TERM DEBT
The City has six types of bonded debt outstanding at December 31, 2012: tax increment bonds,
general obligation bonds, permanent improvement revolving bonds, public project revenue bonds,
Edina emerald energy program 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 solely from special assessments. The sixth 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, 2012, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/2012
Tax Increment Bonds:
Tax Increment Refunding Bonds, Series 2005D 3.00-3.40%7/19/20052/1/20133,505,000 550,000
Total Tax Increment Bonds 3,505,000 550,000
General Obligation Bonds:
General Obligation - Park & Recreation Refunding, 2005A3.50-4.00%7/19/20052/1/20175,375,000 2,710,000
General Obligation - Capital Improvement Plan, 2007A4.00-4.25%5/24/20072/1/20285,865,000 5,035,000
General Obligation - Capital Improvement Plan, 2009A3.00-4.40%4/29/20092/1/203014,000,000 12,965,000
General Obligation - Capital Improvement Plan, 2010A2.00-4.00%11/18/20102/1/20218,285,000 6,895,000
General Obligation - Equipment Certificates, 2010B2.00%11/18/20102/1/2013230,000 75,000
Total General Obligation Bonds33,755,000 27,680,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2005E3.00-3.75%9/13/20052/1/20161,460,000 550,000
Permanent Improvement Revolving, 2007C3.60-4.00%5/24/20072/1/20195,870,000 4,285,000
Permanent Improvement Revolving, 2008B3.00-4.00%8/28/20082/1/20207,755,000 6,425,000
Permanent Improvement Revolving, 2010B2.00-3.00%11/18/20102/1/20222,305,000 2,305,000
Permanent Improvement Revolving, 2011A2.00-3.00%10/27/20112/1/20233,320,000 3,320,000
Permanent Improvement Revolving, 2012A3.00-4.00%11/15/20122/1/20292,675,000 2,675,000
Permanent Improvement Revolving, 2012A - Refunding3.00-4.00%11/15/20122/1/20191,990,000 1,990,000
Total PIR Bonds 25,375,000 21,550,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.50-4.13%9/13/20055/1/20265,425,000 4,220,000
Public Project Revenue, Series 2009A2.10-4.55%11/24/20092/1/20302,595,000 1,645,000
Public Project Revenue, Series 2009B1.95-5.80%11/24/20092/1/20306,125,000 6,000,000
Total Public Project Revenue Bonds14,145,000 11,865,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A7.00%2/25/20121/1/202333,690 33,690
Edina Emerald Energy Program Bonds, 2012B5.50%8/28/20121/1/201840,030 40,030
Total EEEP Bonds 73,720 73,720
Total bonded indebtedness - governmental activities76,853,720$ 61,718,720$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
54
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/2012
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00-3.00%4/29/20091/1/20132,010,000$ 770,000$
Recreational Facility Bonds, Series 2009C2.00-4.00%12/10/20092/1/20302,440,000 2,260,000
Recreational Facility Bonds, Series 2012B.45-1.60%11/15/20122/1/2020815,000 815,000
Recreational Facility Bonds, Series 2012C2.00-3.00%11/15/20122/1/20332,100,000 2,100,000
Utility Revenue Bonds, Series 2003C1.10-3.55%3/1/20032/1/20133,200,000 370,000
Utility Revenue Bonds, Series 2007B4.00%5/24/20072/1/20178,210,000 4,455,000
Utility Revenue Bonds, Series 2008A3.00-4.25%8/28/20082/1/201913,985,000 9,885,000
Utility Revenue Bonds, Series 2011A2.00-3.00%10/27/20112/1/202211,230,000 11,230,000
Utility Revenue Bonds, Series 2012A3.00-4.00%11/15/20122/1/20236,100,000 6,100,000
Total Revenue Bonds 50,090,000 37,985,000
Total bonded indebtedness - business-type activities50,090,000$ 37,985,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
2013550,000$ 9,350$ 2,000,000$ 1,030,105$ 5,745,000$ 567,551$
2014- - 1,985,000 957,899 1,555,000 487,494
2015- - 2,080,000 882,868 1,760,000 436,169
2016- - 2,145,000 804,168 1,820,000 379,044
2017- - 2,210,000 723,043 1,895,000 319,072
2018-2022- - 8,215,000 2,607,589 7,000,000 728,926
2023-2027- - 5,820,000 1,321,267 1,345,000 144,675
2028-2032- - 3,225,000 196,426 430,000 13,050
2033-2037- - - - - -
Total550,000$ 9,350$ 27,680,000$ 8,523,365$ 21,550,000$ 3,075,981$
Principal Interest Principal Interest Principal Interest
2013-$ 4,181$ 490,000$ 518,961$ 3,950,000$ 1,072,096$
201411,375 4,222 505,000 502,999 3,960,000 1,032,009
201511,375 3,546 520,000 485,358 4,145,000 902,443
201611,375 2,870 535,000 466,054 4,285,000 763,255
201711,375 2,193 550,000 444,844 4,435,000 616,811
2018-202224,851 4,347 3,725,000 1,792,561 13,565,000 1,487,340
2023-20273,369 118 4,100,000 877,491 2,150,000 357,391
2028-2032- - 1,440,000 115,136 1,315,000 115,976
2033-2037- - - - 180,000 2,700
Total73,720$ 21,477$ 11,865,000$ 5,203,404$ 37,985,000$ 6,350,021$
Governmental Activities
GeneralPublic ImprovementTax
Obligation Bonds Revolving Bonds
Year Ending
December 31
Year Ending
December 31
Increment Bonds
Business-type Activities
Revenue
Bonds
Governmental Activities
Public Project
Revenue Bonds
Edina Emerald Energy Program
Revenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
55
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2012, was as follows:
BeginningEndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment2,480,000$ -$ (1,930,000)$ 550,000$ 550,000$
General obligation29,700,000 - (2,020,000) 27,680,000 2,000,000
PIR 18,260,000 4,665,000 (1,375,000) 21,550,000 5,745,000
Public project revenue13,160,000 - (1,295,000) 11,865,000 490,000
EEEP revenue- 73,720 - 73,720 -
Less deferred amounts:
Discount on bonds(264,012) (14,275) 28,211 (250,076) -
Premiums987,901 450,423 (110,563) 1,327,761 -
Total bonds payable64,323,889 5,174,868 (6,702,352) 62,796,405 8,785,000
Compensated absences3,827,674 1,874,529 (1,700,354) 4,001,849 1,600,740
Governmental activity
Long-term liabilities68,151,563$ 7,049,397$ (8,402,706)$ 66,798,254$ 10,385,740$
Business-type activities:
Bonds payable:
Revenue bonds31,850,000$ 9,015,000$ (2,880,000)$ 37,985,000$ 3,950,000$
Less deferred amounts:
Discount on bonds(6,273) (58,441) 4,046 (60,668) -
Premiums525,100 734,145 (71,269) 1,187,976 -
Total bonds payable32,368,827 9,690,704 (2,947,223) 39,112,308 3,950,000
Compensated absences850,863 279,089 (296,557) 833,395 333,358
Business-type activity
Long-term liabilities33,219,690$ 9,969,793$ (3,243,780)$ 39,945,703$ 4,283,358$
For governmental activities, compensated absences and other postemployment benefit
obligations are generally liquidated by the general fund.
The City issued $10,765,000 of General Obligation bonds, Series 2012A to finance a current
refunding of the 2014 through 2019 maturities of the City’s $5,870,000 General obligation
bonds, Series 2007C and to finance various street and utility infrastructure improvement
projects. Savings from the current proceeds were not placed in escrow and the General
obligation bonds, Series 2007C are to be redeemed February 1, 2013. The current refunding
was undertaken to reduce total debt service payments by $441,749 and resulted in an
economic gain of $382,241. The City anticipates that utility revenues and special
assessments to benefited properties will be sufficient to pay future debt service on this issue.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
56
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of TotalRemainingPrincipalPledged
DebtTerm ofPrincipaland InterestRevenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009B Recreational Facility BondsPool improvementPool100%2009-2013489,900$ 148,350$ 1,001,946$
2009B Recreational Facility BondsGolf course improvementGolf100%2009-2013313,100 294,050 3,225,591
2009C Recreational Facility BondsArena improvementsArena100%2010-20303,124,000 182,600 1,452,435
2012B Recreational Facility BondsArena improvementsArena100%2013-2020853,530 - 1,452,435
2012C Recreational Facility BondsArena improvementsArena100%2013-20332,879,139 - 1,452,435
2003C Utility Revenue BondsUtility infrastructureUtility100%2003-2013376,568 379,345 17,723,103
2007B Utility Revenue BondsUtility infrastructureUtility100%2007-20174,914,900 989,100 17,723,103
2008A Utility Revenue BondsUtility infrastructureUtility100%2008-201911,337,400 1,604,781 17,723,103
2011A Utility Revenue BondsUtility infrastructureUtility100%2012-202212,710,275 198,764 17,723,103
2012A Utility Revenue BondsUtility infrastructureUtility100%2013-20237,336,209 - 17,723,103
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 2012 is
computed as follows:
December 31, 2012
Market Value (after fiscal disparities)9,025,565,085$
Debt Limit (3% of Market Value)270,766,953$
Amount of debt applicable to debt limit:
Total bonded debt99,703,720$
Less:
Tax increment bonds(550,000)
Public improvement revolving bonds(21,550,000)
Revenue bonds(37,985,000)
EEEP revenue bonds(73,720)
Total debt applicable to debt limit39,545,000$
Legal debt margin231,221,953$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
57
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, 2012
58
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 2012. PEPFF members were
required to contribute 9.6% of their covered salary in 2012. 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, 2012, 2011, and 2010 were $1,044,217, $1,000,753, and $951,791,
respectively. The City’s contributions to the Public Employees Police and Fire Fund for
the years ending December 31, 2012, 2011, and 2010 were $1,020,720, $1,024,566, and
$920,988, 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, 2012
59
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, generally this liability
is 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 codification 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 contribution301,537$
Interest on net OPEB obligation46,231
Adjustment to annual required contribution(39,648)
Annual OPEB cost (expense)308,120
Contributions made(73,700)
Increase in net OPEB obligation234,420
Net OPEB obligation - beginning of year1,027,345
Net OPEB obligation - end of year1,261,765$
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for the past three years are as follows:
Percentage of
FiscalAnnualEmployerAnnual OPEBNet OPEB
Year Ended OPEB Cost Contribution Cost Contributed Obligation
December 31, 2010325,401$ 92,987$ 28.6%816,026$
December 31, 2011321,790 110,471 34.3%1,027,345
December 31, 2012308,120 73,700 23.9%1,261,765
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
60
D. Funded Status and Funding Progress
As of January 1, 2012, the most recent actuarial valuation date, the plan was zero
percent funded. The actuarial accrued liability for benefits was $2,959,876, and the
actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability
(UAAL) of $2,959,876. The covered payroll (annual payroll of active employees covered
by the plan) was $18,220,189, and the ratio of the UAAL to the covered payroll was 16.2
percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability occurrence of events far into the future.
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, 2012 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; a 3.0 percent
general inflation rate, a payroll growth rate of 3.75 percent, and 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, 2012 was 30 years on an “open” basis.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
61
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, 2012, is as follows:
Payable FundAmount
GeneralConstruction264,430$
Debt ServiceConstruction266,005
Police Special RevenueConstruction149,323
Art CenterConstruction236
Aquatic Center33,032
Golf CourseAquatic Center260,936
Arena285,573
LiquorArena1,308,584
Total 2,568,119$
Receivable Fund
The composition of advances to other funds and advances from other funds account balances as
of December 31, 2012, is as follows:
Payable FundAmount
Aquatic CenterGolf Course1,000,000$
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, 2012
62
DebtNonmajor
General Service Construction Golf Course Arena Enterprise Total
Transfer out:
General Fund-$ -$ 1,502,395$ -$ 40,000$ -$ 1,542,395$
HRA Fund- 1,978,445 - - - - 1,978,445
Construction Fund- - - - 109,903 168,262 278,165
Utilities Fund- - 100,000 - - - 100,000
Liquor Fund765,100 - 150,000 100,000 140,000 165,000 1,320,100
765,100$ 1,978,445$ 1,752,395$ 100,000$ 289,903$ 333,262$ 5,219,105$
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, $165,000 and $140,000 to the general
fund, golf course fund, art center, and arena funds, respectively, to subsidize operations.
2. The construction fund transferred $109,903, $79,166 and $86,096 to the arena,
edinborough park, and centennial lakes funds, respectively, to subsidize capital
improvements to those facilities.
3. The HRA fund transferred $1,978,445 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 2012
budget.
5. The general fund transferred $1,542,395 of the 2011 unassigned fund balance to the
construction and arena funds; $1,362,395 to fund various projects within the construction
fund, $40,000 to fund the arena concessions remodel, and $140,000 for human
technology improvements.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
63
Note 10 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1202 (Grandview Commercial Area) is a redevelopment district established in
1984 pursuant to Minnesota Statutes with a termination date of 2010. Although the main district is
decertified, the City continued to receive increments from a sub-district until the outstanding debt
was retired in 2012. Increment previously collected is available for expenditures within the
district.
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a
redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination date
of 2016.
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
The following table reflects values as of December 31, 2012:
TIF #1202TIF #1203TIF #1208Total
Original tax capacity22,872$ 229,691$ 8,525,799$ 8,778,362$
Current tax capacity792,631 3,455,408 8,790,306 13,038,345
Tax capacity change769,759 3,225,717 264,507 4,259,983
Captured tax capacity value:
Retained captured tax capacity769,759$ 3,225,717$ 264,507$ 4,259,983$
Total bonds issued
(general obligation)9,637,555$ 35,894,724$ -$ 45,532,279$
Amounts redeemed9,637,555 35,344,724 - 44,982,279
Outstanding bonds at
December 31, 2012-$ 550,000$ -$ 550,000$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
64
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 Travelers insurance, there is no
deductible. The City has a $492,136 deposit premium that is subject to adjustment
based on the actual audited payroll.
Automobile and general liability coverage is provided through Travelers insurance. The
City pays an annual premium for this coverage and all claims are paid from the plan up to
the annual maximum of $1,500,000 for automobile and $1,500,000 for general liability.
The City is not subject to a deductible for general liability coverage. The deductible for
automobile insurance is $1,000 for comprehensive and $1,000 for collision.
Property coverage is also provided through Travelers insurance. The City pays an annual
premium for this coverage, and all claims are paid for by the plan. The City has $10,000 -
$50,000 deductibles per occurrence depending on claim type, with an annual maximum
of $139,570,482.
Police professional insurance coverage is provided through Travelers insurance. The City
pays an annual premium for this coverage, and has a $10,000 deductible per occurrence,
with a $1,500,000 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 2012.
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, 2012.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
65
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, 2012, the City of Edina had 4 series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $30,585,000. 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, 2012,
the City paid a total of $43,352 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, 2012,
the City paid a total of $11,026 in membership fees to the I-494 Corridor Commission.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
66
Note 15 FUND BALANCES
A. Classifications
At December 31, 2012, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund Debt Service Construction
Nonmajor
Funds Total
Nonspendable
Prepaid items413,200$ -$ -$ -$ -$ 413,200$
Restricted
Park dedication880,395 - - - - 880,395
Tax increments- 12,196,146 - - - 12,196,146
Debt service- - 9,704,408 - - 9,704,408
Unspent bond proceeds- - - 2,759,463 - 2,759,463
Forfeitures- - - - 572,426 572,426
Grant funds- - - - 85,576 85,576
Donations- - - - 331,814 331,814
Assigned
Unrealized investment gains848 - - - - 848
Compensated absences1,642,229 - - - - 1,642,229
Construction commitments- - - 184,048 - 184,048
Special projects- - - 487,451 - 487,451
Equipment- - - 2,323,980 - 2,323,980
Construction - - - 4,164,411 - 4,164,411
Unassigned11,902,462 - - - - 11,902,462
14,839,134$ 12,196,146$ 9,704,408$ 9,919,353$ 989,816$ 47,648,857$
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 $11,902,462 of unassigned fund balance in the general
fund, or 54.8% of 2013 budgeted property tax revenue. This amount is $1,697,872 above the
goal range identified in the policy.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2012
2012
ActualVariance with
OriginalFinalAmountsFinal Budget
Revenues:
General property taxes:
Current21,482,402$ 21,482,402$ 21,239,901$ (242,501)$
Penalties and interest12,000 12,000 29,348 17,348
Total general property taxes21,494,402 21,494,402 21,269,249 (225,153)
Franchise taxes:700,000 700,000 771,293 71,293
Licenses and permits:2,501,600 2,501,600 3,126,541 624,941
Intergovernmental:
Federal:36,000 36,000 108,280 72,280
State:
Municipal state aid195,000 195,000 195,000 -
Other60,000 60,000 191,490 131,490
State aid - police 350,000 350,000 320,390 (29,610)
Health programs119,000 119,000 89,277 (29,723)
Total intergovernmental760,000 760,000 904,437 144,437
Charges for services:
City Clerk76,000 76,000 104,657 28,657
Planning Department25,000 25,000 73,018 48,018
Housing Foundation Contract27,000 27,000 19,855 (7,145)
HRA Services22,000 22,000 18,917 (3,083)
Police Department260,000 260,000 352,980 92,980
Fire Department20,000 20,000 26,067 6,067
Ambulance fees1,638,000 1,638,000 1,848,844 210,844
Health Department7,700 7,700 13,063 5,363
Building Department25,000 25,000 25,938 938
Engineering180,000 180,000 354,636 174,636
Park Registration100,000 100,000 99,336 (664)
Senior Center98,000 98,000 83,791 (14,209)
Communications70,000 70,000 83,028 13,028
Other fees4,000 4,000 3,404 (596)
50th & France Assessment69,000 69,000 69,000 -
Charges to other funds474,564 474,564 474,564 -
Total charges for services3,096,264 3,096,264 3,651,098 554,834
Fines and forfeits1,014,000 1,014,000 1,083,834 69,834
Miscellaneous:
Rental of property370,000 370,000 506,276 136,276
Parkland dedication- - 702,100 702,100
Investment income128,800 128,800 17,659 (111,141)
Donations12,000 12,000 14,685 2,685
Other6,000 6,000 25,477 19,477
Total miscellaneous516,800 516,800 1,266,197 749,397
Total revenues30,083,066 30,083,066 32,072,649 1,989,583
Budgeted Amounts
67
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2012
2012
ActualVariance with
OriginalFinalAmountsFinal Budget
Expenditures:
General government:
Mayor and Council:
Current:
Personal services48,569$ 48,569$ 45,821$ 2,748$
Contractual services13,700 13,700 2,983 10,717
Commodities1,500 1,500 2,460 (960)
Central services27,132 27,132 25,365 1,767
Total mayor and council90,901 90,901 76,629 14,272
Administration:
Current:
Personal services874,057 874,057 895,839 (21,782)
Contractual services184,800 184,800 182,131 2,669
Commodities3,000 3,000 4,892 (1,892)
Central services71,232 71,232 66,912 4,320
Total administration1,133,089 1,133,089 1,149,774 (16,685)
Communications:
Current:
Personal services445,908 445,908 493,737 (47,829)
Contractual services258,450 258,450 240,932 17,518
Commodities35,300 35,300 22,938 12,362
Central services56,124 56,124 52,609 3,515
Total communications795,782 795,782 810,216 (14,434)
Planning:
Current:
Personal services394,000 394,000 391,560 2,440
Contractual services38,100 38,100 66,550 (28,450)
Commodities6,000 6,000 2,527 3,473
Central services44,280 44,280 41,528 2,752
Total planning482,380 482,380 502,165 (19,785)
Finance:
Current:
Personal services520,624 520,624 511,618 9,006
Contractual services105,850 105,850 97,935 7,915
Commodities3,400 3,400 4,554 (1,154)
Central services62,076 62,076 58,361 3,715
Total finance691,950 691,950 672,468 19,482
Election:
Current:
Personal services206,538 206,538 204,352 2,186
Contractual services36,515 36,515 11,934 24,581
Commodities18,500 18,500 5,684 12,816
Central services12,408 12,408 11,683 725
Total election273,961 273,961 233,653 40,308
Budgeted Amounts
68
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2012
2012
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Assessing:
Current:
Personal services676,455$ 676,455$ 661,058$ 15,397$
Contractual services113,441 113,441 93,802 19,639
Commodities2,900 2,900 1,283 1,617
Central services65,616 65,616 61,820 3,796
Total assessing858,412 858,412 817,963 40,449
Legal and court services:
Current:
Contractual services388,500 388,500 403,973 (15,473)
Commissions and projects:
Current:
Personal services200,000 200,000 264,751 (64,751)
Contractual services596,066 596,066 410,728 185,338
Commodities2,000 2,000 27,028 (25,028)
Total commissions and projects798,066 798,066 702,507 95,559
Total general government5,513,041 5,513,041 5,369,348 143,693
Public safety:
Police protection:
Current:
Personal services6,999,108 6,999,108 6,819,934 179,174
Contractual services417,584 417,584 390,945 26,639
Commodities78,244 78,244 66,562 11,682
Central services1,012,152 1,012,152 967,936 44,216
Total police protection8,507,088 8,507,088 8,245,377 261,711
Fire protection:
Current:
Personal services3,830,180 3,830,180 3,805,395 24,785
Contractual services359,110 359,110 411,212 (52,102)
Commodities173,400 173,400 208,846 (35,446)
Central services322,260 322,260 310,348 11,912
Total fire protection4,684,950 4,684,950 4,735,801 (50,851)
Animal Control:
Current:
Personal services73,090 73,090 75,325 (2,235)
Contractual services8,592 8,592 4,802 3,790
Commodities2,472 2,472 2,145 327
Central services8,952 8,952 8,611 341
Total animal control93,106 93,106 90,883 2,223
69
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2012
2012
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Public health:
Current:
Personal services288,178$ 288,178$ 274,254$ 13,924$
Contractual services203,027 203,027 185,959 17,068
Commodities2,325 2,325 1,356 969
Central services30,924 30,924 29,187 1,737
Total public health524,454 524,454 490,756 33,698
Inspections:
Current:
Personal services945,439 945,439 970,902 (25,463)
Contractual services106,800 106,800 92,416 14,384
Commodities9,270 9,270 12,354 (3,084)
Central services105,864 105,864 100,292 5,572
Total inspections1,167,373 1,167,373 1,175,964 (8,591)
Total public safety14,976,971 14,976,971 14,738,781 238,190
Public works:
Administration:
Current:
Personal services203,436 203,436 167,665 35,771
Contractual services6,800 6,800 5,410 1,390
Commodities550 550 - 550
Central services25,680 25,680 24,835 845
Total administration236,466 236,466 197,910 38,556
Engineering:
Current:
Personal services977,647 977,647 863,877 113,770
Contractual services74,250 74,250 55,564 18,686
Commodities16,400 16,400 15,852 548
Central services127,476 127,476 126,540 936
Total engineering1,195,773 1,195,773 1,061,833 133,940
Street maintenance:
Current:
Personal services2,380,757 2,380,757 2,145,404 235,353
Contractual services757,000 757,000 652,763 104,237
Commodities1,012,250 1,012,250 1,057,808 (45,558)
Central services908,640 908,640 936,228 (27,588)
Total street maintenance5,058,647 5,058,647 4,792,203 266,444
Total public works6,490,886 6,490,886 6,051,946 438,940
70
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2012
2012
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Parks:
Administration:
Current:
Personal services680,063$ 680,063$ 705,638$ (25,575)$
Contractual services28,604 28,604 26,670 1,934
Commodities3,075 3,075 3,727 (652)
Central services84,252 84,252 79,138 5,114
Total administration795,994 795,994 815,173 (19,179)
Recreation:
Current:
Personal services190,943 190,943 170,788 20,155
Contractual services180,887 180,887 108,249 72,638
Commodities53,215 53,215 47,116 6,099
Total recreation425,045 425,045 326,153 98,892
Maintenance:
Current:
Personal services1,607,925 1,607,925 1,680,579 (72,654)
Contractual services529,171 529,171 437,811 91,360
Commodities205,641 205,641 200,744 4,897
Central services303,492 303,492 308,901 (5,409)
Total maintenance2,646,229 2,646,229 2,628,035 18,194
Total parks3,867,268 3,867,268 3,769,361 97,907
Total expenditures30,848,166 30,848,166 29,929,436 918,730
Revenues over (under) expenditures(765,100) (765,100) 2,143,213 2,908,313
Other financing sources (uses):
Transfer from other funds765,100 765,100 765,100 -
Transfer to other funds- (1,542,395) (1,542,395) -
Total financing sources (uses)765,100 (777,295) (777,295) -
Net increase (decrease) in fund balance-$ (1,542,395)$ 1,365,918 2,908,313$
Fund balance - January 1 13,473,216
Fund balance - December 3114,839,134$
71
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2012
2012
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Tax increment collections3,980,000$ 3,980,000$ 3,536,935$ (443,065)$
Investment income118,000 118,000 160,098 42,098
Total revenues4,098,000 4,098,000 3,697,033 (400,967)
Expenditures:
Personal services171,600 171,600 37,668 (133,932)
Contractual services694,000 694,000 671,170 (22,830)
Capital outlay200,000 5,100,000 5,003,733 (96,267)
Total expenditures1,065,600 5,965,600 5,712,571 (253,029)
Revenues over (under) expenditures3,032,400 (1,867,600) (2,015,538) (147,938)
Other financing uses:
Transfers out(1,978,445) (1,978,445) (1,978,445) -
Net increase (decrease) in fund balance1,053,955$ (3,846,045)$ (3,993,983) (147,938)$
Fund balance - January 116,190,129
Fund balance - December 3112,196,146$
Budgeted Amounts
72
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2012
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%
January 1, 20122,959,876$ -$ 2,959,876$ 0.0%18,220,189$ 16.2%
73
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
74
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, police special
revenue, and Braemar memorial funds are adopted on a basis consistent with generally
accepted accounting principles (GAAP).
6. Reported budget amounts are as originally adopted or as amended by Council-approved
supplemental appropriations and budget transfers.
7. Expenditures may not legally exceed appropriations by department in the General Fund
unless offset by increases in revenues. All unencumbered appropriations lapse at year-end.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
75
Note B EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund is legally adopted on a basis consistent with accounting principles generally
accepted in the United States of America. The legal level of budgetary control is at the department
level for the General Fund. The following is a listing of General Fund departments whose
expenditures exceed budget appropriations.
FinalOver
Budget Actual Budget
General Fund
General Government
Administration1,133,089$ 1,149,774$ 16,685$
Communications795,782 810,216 14,434
Planning482,380 502,165 19,785
Legal and court services388,500 403,973 15,473
Public Safety
Fire protection4,684,950 4,735,801 50,851
Inspections1,167,373 1,175,964 8,591
Parks
Administration795,994 815,173 19,179
Excess expenditures in the General Fund administration department are due to the expansion of the
department resulting in additional wages.
Excess expenditures in the communications department are due to a reallocation of employee time
during the year and part time employees working more time than anticipated as a result of additional
video production which is funded by additional video production revenue.
Excess expenditures in the planning department are due to higher than anticipated expenses related
to traffic and parking studies during the year and are funded by additional revenue received from
developers.
Excess expenditures in the legal and court services department are due to increased prisoner
boarding expenses as a result of increased arrests and bookings.
Excess expenditures in the fire protection department are due to unexpected repairs related to a
crash involving one of the fire engines and unbudgeted small equipment purchases.
Excess expenditures in the inspections department are due to higher than anticipated permit
applications during the year and are funded by additional permit revenue received.
Excess expenditures in the parks administration department are due to increased wages as a result
of reorganization of positions.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
76
The HRA, debt service, construction, CDBG, police special revenue, and braemar memorial funds
budgets are 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 fund level for these funds. The
following is a listing of funds whose expenditures exceed budget appropriations.
FinalOver
Budget Actual Budget
Debt Service Fund7,844,476$ 8,912,394$ 1,067,918$
Construction Fund7,203,809 9,523,522 2,319,713
Excess expenditures in the debt service fund are due to an unbudgeted call of certain maturities
related to Public project revenue bond, Series 2009A.
Excess expenditures in the construction fund are due to higher than anticipated expenditures related
to infrastructure projects.
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.
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
77
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
CommunityTotal Nonmajor
DevelopmentPoliceBraemarSpecial Revenue
Block Grant Special Revenue Memorial Funds
Assets
Cash and cash equivalents-$ 239,017$ 86,035$ 325,052$
Unrestricted investments- 244,954 245,624 490,578
Accrued interest receivable- 516 80 596
Accounts receivable- 1,139 75 1,214
Due from other funds- 149,323 - 149,323
Due from other governments- 23,554 - 23,554
Total assets-$ 658,503$ 331,814$ 990,317$
Liabilities and Fund Balance
Liabilities:
Accounts payable-$ 501$ -$ 501$
Total liabilities- 501 - 501
Fund balance:
Restricted- 658,002 331,814 989,816
Total fund balance- 658,002 331,814 989,816
Total liabilities
and fund balance-$ 658,503$ 331,814$ 990,317$
78
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2012
CommunityTotal Nonmajor
DevelopmentPoliceBraemarSpecial Revenue
Block Grant Special Revenue Memorial Funds
Revenues:
Intergovernmental16,543$ 63,364$ -$ 79,907$
Fines and forfeitures- 111,220 - 111,220
Investment income- 1,047 2,302 3,349
Other- - 2,933 2,933
Total revenues16,543 175,631 5,235 197,409
Expenditures:
Current:
General government16,543 - - 16,543
Public safety- 173,021 - 173,021
Parks- - 6,757 6,757
Total expenditures16,543 173,021 6,757 196,321
Net increase (decrease)in fund balance- 2,610 (1,522) 1,088
Fund balance -
January 1- 655,392 333,336 988,728
Fund balance -
December 31-$ 658,002$ 331,814$ 989,816$
79
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, 2012
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Intergovernmental145,365$ 145,365$ 16,543$ (128,822)$
Expenditures:
Current:
Contractual services145,365 145,365 16,543 (128,822)
Net increase in fund balance-$ -$ - -$
Fund balance - January 1 -
Fund balance - December 31-$
Budgeted Amounts
80
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, 2012
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Intergovernmental104,760$ 104,760$ 63,364$ (41,396)$
Fines and forfeiture57,821 57,821 111,220 53,399
Investment income600 600 1,047 447
Total revenues163,181 163,181 175,631 12,450
Expenditures:
Current:
Contractual services85,574 85,574 16,321 (69,253)
Commodities18,655 18,655 156,700 138,045
Capital outlay249,425 249,425 - (249,425)
Total expenditures353,654 353,654 173,021 (180,633)
Net increase in fund balance(190,473)$ (190,473)$ 2,610 193,083$
Fund balance - January 1655,392
Fund balance - December 31658,002$
Budgeted Amounts
81
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, 2012
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Investment income300$ 300$ 2,302$ 2,002$
Donations3,000 3,000 2,933 (67)
Total revenues3,300 3,300 5,235 1,935
Expenditures:
Current:
Contractual services25,000 25,000 6,757 (18,243)
Net increase (decrease) in fund balance(21,700)$ (21,700)$ (1,522) 20,178$
Fund balance - January 1333,336
Fund balance - December 31331,814$
Budgeted Amounts
82
Debt Service Fund - This fund was established to account for the payment of
principal and interest on the Tax Increment, General Obligation, Permanent
Improvement Revolving, and Public Project Revenue Bonds.
Construction Fund - This fund was established to account for 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.
MAJOR GOVERNMENTAL FUNDS
83
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND - DEBT SERVICE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2012
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
General property taxes3,651,752$ 3,651,752$ 3,593,370$ (58,382)
Special assessments1,871,169 1,871,169 2,521,001 649,832
Intergovernmental- - 101,549 101,549
Investment income30,200 30,200 23,894 (6,306)
Total revenues5,553,121 5,553,121 6,239,814 686,693
Expenditures:
Debt Service7,844,476 7,844,476 8,912,394 1,067,918
Revenues over (under) expenditures(2,291,355) (2,291,355) (2,672,580) (381,225)
Other financing sources (uses):
Transfers in1,978,445 1,978,445 1,978,445 -
Bonds issued- - 109,001 109,001
Refunding bonds issued- - 1,990,000 1,990,000
Premium (discount) on bonds issued- - 231,359 231,359
Total other financing
sources (uses)1,978,445 1,978,445 4,308,805 2,330,360
Net increase (decrease) in fund balance(312,910)$ (312,910)$ 1,636,225 1,949,135$
Fund balance - January 18,068,183
Fund balance - December 319,704,408$
Budgeted Amounts
84
CITY OF EDINA, MINNESOTA
GOVERNMENTAL FUND - CONSTRUCTION
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2012
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
General property taxes992,072$ 992,072$ 975,803$ (16,269)
Franchise fees- - 44,237 44,237
Special assessments1,329,343 1,329,343 2,454,640 1,125,297
License and permits25,000 25,000 28,810 3,810
Intergovernmental50,000 50,000 947,073 897,073
Charges for services50,000 50,000 57,384 7,384
Investment income151,600 151,600 136,986 (14,614)
Other revenues- - 197,746 197,746
Total revenues2,598,015 2,598,015 4,842,679 2,244,664
Expenditures:
Personal services88,544 88,544 127,319 38,775
Contractual services210,064 210,064 706,292 496,228
Commodities25,000 25,000 69,890 44,890
Central services1,392 1,392 1,311 (81)
Capital outlay6,878,809 6,878,809 8,618,710 1,739,901
Total expenditures7,203,809 7,203,809 9,523,522 2,319,713
Revenues over (under) expenditures(4,605,794) (4,605,794) (4,680,843) (75,049)
Other financing sources (uses):
Transfers in250,000 250,000 1,752,395 1,502,395
Transfers out(690,000) (690,000) (278,165) 411,835
Sale of capital assets- - 94,975 94,975
Bonds issued3,131,700 3,131,700 2,639,719 (491,981)
Premium on bonds issued- - 212,975 212,975
Discount on bonds issued- - (8,186) (8,186)
Total other financing
sources (uses)2,691,700 2,691,700 4,413,713 1,722,013
Net increase (decrease) in fund balance(1,914,094)$ (1,914,094)$ (267,130) 1,646,964$
Fund balance - January 110,186,483
Fund balance - December 319,919,353$
Budgeted Amounts
85
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86
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:
Art Center Fund - This fund accounts for activities related to the City's Art Center.
Edinborough Park Fund - This fund accounts for activities related to Edinborough
Park.
Centennial Lakes Fund - This fund accounts for activities related to
Centennial Lakes Park.
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
87
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
December 31, 2012
Total Nonmajor
ArtEdinboroughCentennialProprietary
Center Park Lakes Funds
Assets
Current assets:
Cash and cash equivalents130,065$ 32,793$ 1,153$ 164,011$
Unrestricted investments- 1,452,146 1,282,636 2,734,782
Interest receivable- 6,011 5,309 11,320
Accounts receivable- 868 6,692 7,560
Due from other funds33,268 - - 33,268
Inventory10,795 - - 10,795
Total current assets174,128 1,491,818 1,295,790 2,961,736
Noncurrent assets:
Net capital assets196,401 1,327,424 308,627 1,832,452
Total noncurrent assets196,401 1,327,424 308,627 1,832,452
Total assets370,529 2,819,242 1,604,417 4,794,188
Liabilities:
Current liabilities:
Accounts payable7,348 33,158 12,636 53,142
Salaries payable10,348 31,884 22,514 64,746
Contracts payable- 42,080 19,320 61,400
Due to other governments726 8,123 2,366 11,215
Unearned revenue9,735 30 - 9,765
Compensated absences payable4,320 20,918 32,353 57,591
Total current liabilities32,477 136,193 89,189 257,859
Noncurrent liabilities:
Net OPEB obligation3,786 10,887 10,887 25,560
Compensated absences payable6,480 31,377 48,530 86,387
Total noncurrent liabilities10,266 42,264 59,417 111,947
Total liabilities42,743 178,457 148,606 369,806
Net position:
Net investment in capital assets 196,401 1,327,424 308,627 1,832,452
Unrestricted131,385 1,313,361 1,147,184 2,591,930
Total net position327,786$ 2,640,785$ 1,455,811$ 4,424,382$
88
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2012
Total Nonmajor
ArtEdinboroughCentennialProprietary
Center Park Lakes Funds
Operating revenues:
Sales - retail36,929$ -$ -$ 36,929$
Sales - concessions559 120,183 28,641 149,383
Memberships27,741 50,348 - 78,089
Admissions- 646,399 - 646,399
Building rental- 166,342 112,756 279,098
Rental of equipment- 14,142 112,542 126,684
Greens fees- - 183,873 183,873
Class registration & other fees376,712 246,039 275,884 898,635
Total operating revenues441,941 1,243,453 713,696 2,399,090
Operating expenses:
Cost of sales and services20,310 41,237 10,004 71,551
Personal services395,106 654,628 527,627 1,577,361
Contractual services98,836 302,340 142,006 543,182
Commodities39,152 141,675 100,902 281,729
Central Services37,886 54,010 49,909 141,805
Depreciation26,287 161,395 38,829 226,511
Total operating expenses617,577 1,355,285 869,277 2,842,139
Operating loss(175,636) (111,832) (155,581) (443,049)
Nonoperating revenues (expenses):
Investment income- 37,133 28,921 66,054
Donations9,844 - - 9,844
Total nonoperating
revenues (expenses)9,844 37,133 28,921 75,898
Income (loss) before transfers(165,792) (74,699) (126,660) (367,151)
Transfers:
Transfers in165,000 79,166 89,096 333,262
Total transfers 165,000 79,166 89,096 333,262
Change in net position(792) 4,467 (37,564) (33,889)
Net position - January 1 328,578 2,636,318 1,493,375 4,458,271
Net position - December 31327,786$ 2,640,785$ 1,455,811$ 4,424,382$
89
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2012
Total Nonmajor
ArtEdinboroughCentennialProprietary
Center Park Lakes Funds
Cash flows from operating activities:
Receipts from customers and users443,581$ 1,247,771$ 711,060$ 2,402,412$
Payment to suppliers(199,898) (557,305) (300,829) (1,058,032)
Payment to employees(384,925) (635,324) (524,569) (1,544,818)
Donations received9,844 - - 9,844
Net cash provided by (used in)
operating activities(131,398) 55,142 (114,338) (190,594)
Cash flows from noncapital financing activities:
Transfer from other funds165,000 79,166 89,096 333,262
Proceeds from interfund borrowing129,731 - 6,703 136,434
Payment of interfund borrowing(33,268) - - (33,268)
Net cash provided by noncapital
financing activities261,463 79,166 95,799 436,428
Cash flows from capital and related financing activities:
Acquisition of capital assets- (37,086) (69,776) (106,862)
Net cash used in capital and
related financing activities- (37,086) (69,776) (106,862)
Cash flows from investing activities:
Proceeds from sales of investments- (118,605) 50,905 (67,700)
Interest received- 37,605 30,095 67,700
Net cash flows provided by (used in)
investing activities- (81,000) 81,000 -
Net increase (decrease) in cash
and cash equivalents130,065 16,222 (7,315) 138,972
Cash and cash equivalents - January 1- 16,571 8,468 25,039
Cash and cash equivalents - December 31130,065$ 32,793$ 1,153$ 164,011$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (175,636)$ (111,832)$ (155,581)$ (443,049)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation26,287 161,395 38,829 226,511
Donations9,844 - - 9,844
Changes in assets and liabilities:
Decrease (increase) in receivables- 4,318 (2,626) 1,692
Decrease (increase) in inventory1,530 - - 1,530
Increase (decrease) in accounts payable(5,230) (16,857) 637 (21,450)
Increase (decrease) in salaries payable3,292 8,836 (534) 11,594
Increase (decrease) in due to
other governments(14) (1,186) 1,355 155
Increase (decrease) in unearned revenue1,640 - (10) 1,630
Increase (decrease) in OPEB payable451 1,029 1,029 2,509
Increase (decrease) in
compensated absences6,438 9,439 2,563 18,440
Total adjustments44,238 166,974 41,243 252,455
Net cash provided by (used in)
operating activities(131,398)$ 55,142$ (114,338)$ (190,594)$
Noncash investing activities:
Increase (decrease) in
fair value of investments- (19,782) (12,271) (32,053)
90
Agency funds are used to report resources held by the City in a purely custodial
capacity. The following are agency funds:
Police Seizure Fund - This fund accounts for assets seized by the Police
Department.
Public Safety Training Facility - This fund accounts for assets and liabilities of the
South Metro Public Safety Training Facility, which is a joint venture that the City has
fiduciary responsibilities for.
Payroll Fund - This fund accounts for assets withheld from employee paychecks
that the City plans to remit to various third parties, including state & local
governments, insurance providers, and others.
FIDUCIARY FUNDS
Agency Funds
91
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92
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2012
BalanceBalance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash 22,689$ 17$ -$ 22,706$
Liabilities:
Due to other governmental units 22,689$ 17$ -$ 22,706$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash8,433$ 826,133$ 825,615$ 8,951$
Investments 310,000 150,000 210,000 250,000
Total Assets 318,433$ 976,133$ 1,035,615$ 258,951$
Liabilities:
Accounts payable5,338$ 322,778$ 317,771$ 10,345$
Salaries payable7,016 203,444 202,645 7,815
Due to other governmental units 306,079 449,911 515,199 240,791
Total Liabilities 318,433$ 976,133$ 1,035,615$ 258,951$
PAYROLL
Assets:
Cash 26,916$ 16,008,293$ 15,999,908$ 35,301$
Liabilities:
Accounts payable 26,916$ 16,008,293$ 15,999,908$ 35,301$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash58,038$ 16,834,443$ 16,825,523$ 66,958$
Investments 310,000 150,000 210,000 250,000
Total Assets 368,038$ 16,984,443$ 17,035,523$ 316,958$
Liabilities:
Accounts payable32,254$ 16,331,071$ 16,317,679$ 45,646$
Salaries payable7,016 203,444 202,645 7,815
Due to other governmental units 328,768 449,928 515,199 263,497
Total Liabilities 368,038$ 16,984,443$ 17,035,523$ 316,958$
93
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94
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2009 2010 2011 2012 2013
Total tax capacity122,532,149$ 120,816,822$ 113,981,017$ 109,012,566$ 106,529,983$
Increment valuation(10,307,195) (4,960,337) (4,043,859) (3,917,958) (4,194,083)
Contribution to fiscal
disparities pool(10,393,526) (10,942,782) (11,039,952) (10,283,433) (8,831,694)
Tax capacity used
for rate calculation101,831,428 104,913,703 98,897,206 94,811,175 93,504,206
Fiscal disparities distribution3,298,549 3,537,906 3,421,345 3,068,256 2,615,313
Adjusted net tax capacity105,129,977$ 108,451,609$ 102,318,551$ 97,879,431$ 96,119,519$
Tax levies:
General fund21,202,691$ 20,737,472$ 21,004,000$ 21,604,402$ 21,824,894$
Equipment- 940,484 992,072 992,072 992,072
Debt service2,351,030 3,212,757 3,174,308 3,040,890 3,314,581
Total certified tax levies23,553,721 24,890,713 25,170,380 25,637,364 26,131,547
Referendum market value levy600,212 602,250 615,837 610,862 615,837
Total levy24,153,933$ 25,492,963$ 25,786,217$ 26,248,226$ 26,747,384$
Tax capacity rate:
General fund revenue20.204 20.004 21.548 23.131 23.762
Bonds & interest2.243 2.968 3.112 3.116 3.454
Total tax capacity rate22.447 22.972 24.660 26.247 27.216
Market value rate0.00597 0.00606 0.00654 0.00667 0.00690
95
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2012
Final
InterestMaturityOriginal
RatesDateDateIssue Redeemed
Tax Increment Bonds:
Tax Increment Bonds, Series 2002B3.00%08/05/0202/01/121,400,000$ -$
Tax Increment Refunding Bonds, Series 2005D 3.00 - 3.4007/19/0502/01/133,505,000 2,425,000
Total Tax Increment Bonds 4,905,000 2,425,000
General Obligation Bonds:
GO Park & Recreation Refunding Bonds,
Series 2005A3.50 - 4.0007/19/0502/01/175,375,000 2,180,000
GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/285,865,000 610,000
GO Capital Improvement Plan, Series 2009A3.00 - 4.4004/29/0902/01/3014,000,000 510,000
GO Equipment Certificates, Series 2009B2.00 - 3.0004/29/0901/01/12230,000 150,000
GO Capital Improvement Plan, Series 2010A2.00 - 4.0011/18/1002/01/218,285,000 755,000
GO Equipment Certificates, Series 2010B2.0011/18/1002/01/13230,000 80,000
Total General Obligation Bonds 33,985,000 4,285,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving,
Series 2005E3.00 - 3.7509/13/0502/01/161,460,000 765,000
GO Permanent Improvement Revolving
Series 2007C3.60 - 4.2505/24/0702/01/195,870,000 1,030,000
GO Permanent Improvement Revolving
Series 2008B3.00 - 4.0008/28/0802/01/207,755,000 655,000
GO Permanent Improvement Revolving
Series 2010B2.00 - 3.0011/18/1002/01/222,305,000 -
GO Permanent Improvement Revolving
Series 2011A2.00 - 3.0010/27/1102/01/233,320,000 -
GO Permanent Improvement Revolving
Series 2012A3.00 - 4.0011/15/1202/01/29- -
GO Permanent Improvement Revolving
Series 2012A - Refunding3.00 - 4.0011/15/1202/01/19- -
Total PIR Bonds 20,710,000 2,450,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.00 - 4.1309/13/0505/01/265,425,000 985,000
Taxable Public Project Revenue, Series 2009A2.10 - 4.5511/24/0902/01/302,595,000 -
Taxable Public Project Revenue, Series 2009B 1.95 - 5.8011/24/0902/01/306,125,000 -
Total Public Project Revenue Bonds 14,145,000 985,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A7.0002/25/1201/01/23- - Edina Emerald Energy Progrm Revenue, 2012B 5.50 08/28/12 01/01/18 - -
Total Public Project Revenue Bonds - -
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00 - 3.0004/29/0901/01/172,010,000 820,000
Recreational Facility Bonds, Series 2009C2.00 - 4.0012/10/0902/01/302,440,000 80,000
Recreational Facility Bonds, Series 2012B.45 - 1.6011/15/1202/01/20- -
Recreational Facility Bonds, Series 2012C2.00 - 3.0011/15/1202/01/33- -
Utility Revenue Bonds, Series 2003C1.10 - 3.5503/01/0302/01/133,200,000 2,470,000
Utility Revenue Bonds, Series 2007B4.0005/24/0702/01/178,210,000 2,960,000
Utility Revenue Bonds, Series 2008A3.00 - 4.0008/28/0802/01/1913,985,000 2,895,000
Utility Revenue Bonds, Series 2011A2.00 - 3.0010/27/1102/01/2211,230,000 -
Utility Revenue Bonds, Series 2012A 3.00 - 4.0011/15/1202/01/23- -
Total Public Project Revenue Bonds 41,075,000 9,225,000
Total - Bonded indebtedness 114,820,000$ 19,370,000$
Prior Years
96
PrincipalInterestInterest
OutstandingPayableDueDuePayable
12/31/2011 Issued Payments 12/31/2012 In 2013 In 2013 to Maturity
1,400,000$ -$ 1,400,000$ -$ -$ -$ -$
1,080,000 - 530,000 550,000 550,000 9,350 9,350
2,480,000 - 1,930,000 550,000 550,000 9,350 9,350
3,195,000 - 485,000 2,710,000 500,000 96,487 276,445
5,255,000 - 220,000 5,035,000 230,000 201,144 1,838,616
13,490,000 - 525,000 12,965,000 540,000 469,024 5,093,854
80,000 - 80,000 - - - -
7,530,000 - 635,000 6,895,000 655,000 262,700 1,313,700
150,000 - 75,000 75,000 75,000 750 750
29,700,000 - 2,020,000 27,680,000 2,000,000 1,030,105 8,523,365
695,000 - 145,000 550,000 550,000 9,878 9,879
4,840,000 - 555,000 4,285,000 4,285,000 82,675 82,675
7,100,000 - 675,000 6,425,000 700,000 223,394 1,034,722
2,305,000 - - 2,305,000 210,000 52,000 303,625
3,320,000 - - 3,320,000 - 80,600 539,300
- 2,675,000 - 2,675,000 - 62,400 818,375
- 1,990,000 - 1,990,000 - 56,604 287,405
18,260,000 4,665,000 1,375,000 21,550,000 5,745,000 567,551 3,075,981
4,440,000 - 220,000 4,220,000 225,000 166,144 1,321,029
2,595,000 - 950,000 1,645,000 - 66,810 741,048
6,125,000 - 125,000 6,000,000 265,000 286,007 3,141,327
13,160,000 - 1,295,000 11,865,000 490,000 518,961 5,203,404
- 33,690 - 33,690 - 2,358 14,150 - 40,030 - 40,030 - 1,823 7,327
- 73,720 - 73,720 - 4,181 21,477
1,190,000 - 420,000 770,000 450,000 13,700 33,000
2,360,000 - 100,000 2,260,000 100,000 80,600 864,000
- 815,000 - 815,000 - 5,573 38,530
- 2,100,000 - 2,100,000 - 38,253 779,139
730,000 - 360,000 370,000 370,000 6,568 6,568
5,250,000 - 795,000 4,455,000 820,000 161,800 459,900
11,090,000 - 1,205,000 9,885,000 1,245,000 359,969 1,452,400
11,230,000 - - 11,230,000 965,000 251,500 1,480,275
- 6,100,000 - 6,100,000 - 154,133 1,236,209
31,850,000 9,015,000 2,880,000 37,985,000 3,950,000 1,072,096 6,350,021
95,450,000$ 13,753,720$ 9,500,000$ 99,703,720$ 12,735,000$ 3,202,244$ 23,183,598$
2012
97
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, 2012
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 18,662,106 277,772 10,797,229
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds- 300,000 1,148,087 29,496 (877,583)
Other- - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 34,749,520 307,268 9,580,319
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 8,237,555 1,400,000 262,445
Interest- 9,190,000 3,323,904 21,000 5,845,096
Loan/note interest- - 5,150,288 - (5,150,288)
Paid to other governments- - 205,928 2,235 (208,163)
Administrative costs190,000 1,920,107 1,375,451 - 544,656
Total uses of funds:4,500,000 44,637,107 33,016,789 1,423,235 10,197,083
Funds remaining (deficit)-$ -$ 1,732,731$ (1,115,967)$ (616,764)$
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$
98
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR SOUTHEAST EDINA REDEVELOPMENT DISTRICT-NO. 1203, A TAX INCREMENT FINANCING DISTRICT
December 31, 2012
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds41,400,000$ -$ 33,761,677$ -$ (33,761,677)$
Tax increments received80,000,000 130,000,000 48,515,790 3,259,163 78,225,047
Real estate sales *5,000,000 9,137,070 11,637,070 - (2,500,000)
Special assessment- - - - -
Interest on invested funds- 5,000,000 4,512,226 137,089 350,685
Transfer in- - 38,646,971 - (38,646,971)
Sale of material- - 255,710 - (255,710)
Developer payments- - 297,826 - (297,826)
Other- - 21,799 - (21,799)
Total sources of funds:126,400,000 144,137,070 137,649,069 3,396,252 3,091,749
Uses of funds:
Land acquisition13,900,000 30,000,000 22,981,425 - 7,018,575
Site improvements
and preparation26,677,000 15,000,000 14,492,602 1,951 505,447
Other qualifying
improvements- 50,337,070 6,718,758 - 43,618,312
Bond payments:
Principal41,400,000 - 34,814,724 530,000 (35,344,724)
Interest38,000,000 47,000,000 34,260,361 27,445 12,712,194
Administrative costs1,140,800 1,800,000 1,438,423 92,133 269,444
Paid to other governments- - 50,183 5,389 (55,572)
Loan/note interest- - 6,779,688 609,184 (7,388,872)
Parkland dedication fees- - 2,030,345 - (2,030,345)
Total uses of funds:121,117,800 144,137,070 123,566,509 1,266,102 19,304,459
Funds remaining (deficit)5,282,200$ -$ 14,082,560$ 2,130,150$ (16,212,710)$
Cost to authorityPrice paid by developer
* Real estate sales
Retail and theater site3,213,720$ 3,213,720$
Medical office site815,092 815,092
Office site1,107,160 1,107,160
Office building #1449,300 449,300
Office building #21,280,702 1,280,702
Office building #31,341,533 1,341,533
Office building #41,625,849 1,625,849
Office building #51,803,714 1,803,714
11,637,070$ 11,637,070$
99
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, 2012
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- - 291,710 14,245 (305,955)
Total sources of funds:4,088,855 4,088,855 1,038,573 14,245 3,036,037
Uses of funds:
Land acquisition529,400 529,400 45,799 1,781 481,820
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 4,088,855 663,638 1,781 3,423,436
Funds remaining (deficit)-$ -$ 374,935$ 12,464$ (387,399)$
100
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR SOUTHDALE 2-NO. 1208, A TAX INCREMENT FINANCING DISTRICT
December 31, 2012
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Tax increments received11,702,217$ 11,702,217$ -$ -$ 11,702,217$
Interest on invested funds250,000 250,000 - - 250,000
Total sources of funds:11,952,217 11,952,217 - - 11,952,217
Uses of funds:
Site improvements
and preparation2,274,296 2,274,296 - - 2,274,296
Other qualifying
improvements5,000,000 5,000,000 - 5,000,000 -
Interest3,577,921 3,577,921 - - 3,577,921
Administrative costs1,100,000 1,100,000 - - 1,100,000
Total uses of funds:11,952,217 11,952,217 - 5,000,000 6,952,217
Funds remaining (deficit)-$ -$ -$ (5,000,000)$ 5,000,000$
101
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102
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
104
Sources:Unlessotherwisenoted,theinformationintheseschedulesisderivedfromthe
comprehensive annual financial reports for the relevant 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.
112
116
121
123
103
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2003 2004 2005 2006
Governmental activities
Net investment in capital assets21,792,377$ 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 position58,345,908$ 65,228,312$ 71,967,764$ 85,094,070$
Business-type activities
Net investment in capital assets29,952,549$ 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 position46,969,851$ 49,174,972$ 51,165,889$ 53,361,270$
Primary government
Net investment in capital assets51,744,926$ 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 position105,315,759$ 114,403,284$ 123,133,653$ 138,455,340$
Fiscal Year
104
2007 2008 2009 2010 2011 2012
67,680,882$ 71,601,227$ 69,622,370$ 69,783,162$ 75,045,018$ 78,644,392$
- 3,362,446 7,132,865 9,952,443 22,915,776 23,215,910
25,136,312 29,577,462 30,705,600 41,709,528 29,544,149 29,587,700
92,817,194$ 104,541,135$ 107,460,835$ 121,445,133$ 127,504,943$ 131,448,002$
43,046,160$ 46,851,736$ 47,333,794$ 48,807,806$ 56,877,100$ 63,766,144$
- 954,486 624,837 618,852 623,099 876,909
13,649,355 12,071,776 15,158,720 17,041,122 12,926,674 14,390,609
56,695,515$ 59,877,998$ 63,117,351$ 66,467,780$ 70,426,873$ 79,033,662$
110,727,042$ 118,452,963$ 116,956,164$ 118,590,968$ 131,922,118$ 142,410,536$
- 4,316,932 7,757,702 10,571,295 23,538,875 24,092,819
38,785,667 41,649,238 45,864,320 58,750,650 42,470,823 43,978,309
149,512,709$ 164,419,133$ 170,578,186$ 187,912,913$ 197,931,816$ 210,481,664$
Fiscal Year
105
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN 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
Arena1,475,842 1,492,461 1,497,431 1,542,098
Community activity centers 2,357,184 2,357,731 2,328,131 2,506,551
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 activities898,141 748,398 630,157 793,796
Operating grants and contributions1,215,745 1,154,808 1,512,366 1,423,302
Capital grants and 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 center861,340 764,134 849,380 867,626
Golf course3,684,079 3,538,122 3,482,999 3,646,620
Arena1,346,721 1,319,987 1,376,607 1,418,555
Community activity centers1,620,010 1,934,025 1,875,253 1,918,598
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 Position
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 Position
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
106
2007 2008 2009 2010 2011 2012
7,039,298$ 6,836,248$ 7,362,560$ 6,961,082$ 7,013,231$ 12,598,979$
13,743,194 14,833,647 14,751,479 15,543,594 16,024,575 16,598,423
8,757,022 9,046,873 8,993,290 8,558,363 9,193,336 9,437,285
5,025,560 5,971,565 7,732,777 5,608,758 5,540,585 5,904,724
1,887,633 1,923,821 2,129,490 2,528,424 2,339,370 2,222,392
36,452,707 38,612,154 40,969,596 39,200,221 40,111,097 46,761,803
10,036,844 10,625,811 11,833,994 11,848,538 12,130,685 12,610,875
10,361,998 11,049,223 11,449,194 11,594,643 11,727,106 11,740,744
780,981 787,663 798,369 769,608 718,027 866,944
3,621,977 3,612,482 3,588,831 3,561,573 3,390,949 3,293,192
1,538,407 1,689,660 1,665,082 1,527,536 1,689,001 2,182,200
2,630,127 2,813,189 2,971,293 2,965,243 2,998,915 2,842,139
28,970,334 30,578,028 32,306,763 32,267,141 32,654,683 33,536,094
65,423,041$ 69,190,182$ 73,276,359$ 71,467,362$ 72,765,780$ 80,297,897$
784,659$ 840,070$ 811,087$ 946,107$ 969,745$ 1,142,984$
5,632,642 5,839,683 5,081,563 5,448,505 5,988,485 6,549,929
736,329 763,130 804,500 723,559 775,676 913,864
1,384,024 1,170,183 1,377,785 1,162,411 1,392,892 1,685,026
4,299,509 7,710,015 2,582,999 13,325,431 5,770,912 9,137,011
12,837,163 16,323,081 10,657,934 21,606,013 14,897,710 19,428,814
13,125,773 13,713,249 14,858,488 15,036,016 15,873,937 17,729,589
11,436,175 12,122,599 12,655,777 12,857,064 13,172,484 13,230,941
868,833 925,388 859,816 945,529 913,383 1,001,946
3,630,538 3,680,584 3,660,466 3,443,204 3,285,741 3,225,591
1,414,173 1,399,599 1,414,410 1,301,506 1,315,435 1,452,435
2,102,938 2,117,619 2,192,274 2,194,476 2,331,136 2,399,090
127,492 147,456 135,917 373,230 135,428 1,042,195
32,705,922 34,106,494 35,777,148 36,151,025 37,027,544 40,081,787
45,543,085$ 50,429,575$ 46,435,082$ 57,757,038$ 51,925,254$ 59,510,601$
(23,615,544)$ (22,289,073)$ (30,311,662)$ (17,594,208)$ (25,213,387)$ (27,332,989)$
3,735,588 3,528,466 3,470,385 3,883,884 4,372,861 6,545,693
(19,879,956)$ (18,760,607)$ (26,841,277)$ (13,710,324)$ (20,840,526)$ (20,787,296)$
21,459,001$ 22,242,276$ 23,834,274$ 25,122,113$ 25,040,871$ 25,884,662$
7,793,577 8,578,434 7,587,386 4,488,073 4,083,345 3,536,935
570,871 647,466 667,791 692,288 722,160 815,530
1,581,702 1,185,899 387,177 474,444 601,250 341,986
58,377 1,265 11,709 35,594 131,365 -
919,625 967,800 743,025 765,994 694,206 696,935
32,383,153 33,623,140 33,231,362 31,578,506 31,273,197 31,276,048
-$ -$ 300,372$ -$ -$ -$
510,678 607,312 209,371 205,965 280,438 113,177
7,604 14,505 2,250 26,574 - 2,644,854
(919,625) (967,800) (743,025) (765,994) (694,206) (696,935)
(401,343) (345,983) (231,032) (533,455) (413,768) 2,061,096
31,981,810$ 33,277,157$ 33,000,330$ 31,045,051$ 30,859,429$ 33,337,144$
8,767,609$ 11,334,067$ 2,919,700$ 13,984,298$ 6,059,810$ 3,943,059$
3,334,245 3,182,483 3,239,353 3,350,429 3,959,093 8,606,789
12,101,854$ 14,516,550$ 6,159,053$ 17,334,727$ 10,018,903$ 12,549,848$
Fiscal Year
107
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2003 2004 2005a 2006
General fund
Reserved412,991$ 390,771$ 223,351$ 36,849$
Unreserved9,961,074 10,226,055 11,595,433 13,797,189
Nonspendable- - - -
Restricted- - - -
Assigned- - - -
Unassigned- - - -
Total general fund10,374,065$ 10,616,826$ 11,818,784$ 13,834,038$
All other governmental funds
Reserved4,084,987$ 3,465,440$ 13,792,312$ 2,682,238$
Unreserved, reported in:
Special revenue funds686,777 781,458 731,027 13,179,904
Capital projects funds19,608,849 16,651,788 17,032,750 3,160,085
Restricted, reported in:
Special revenue funds- - - -
Debt service funds- - - -
Construction funds- - - -
Assigned, reported in:
Capital projects funds- - - -
Total all other governmental funds24,380,613$ 20,898,686$ 31,556,089$ 19,022,227$
a 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.b 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.
c 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
108
2007 2008 2009b 2010 2011c 2012
28,637$ 13,982$ 18,241$ 10,258$ -$ -$
14,078,220 14,365,021 12,031,358 12,868,952 - -
- - - - 10,871 413,200
- - - - 178,295 880,395
- - - - 1,539,286 1,643,077
- - - - 11,744,764 11,902,462
14,106,857$ 14,379,003$ 12,049,599$ 12,879,210$ 13,473,216$ 14,839,134$
6,247,539$ 8,467,918$ 15,223,353$ 9,460,834$ -$ -$
14,750,448 14,950,538 12,813,439 15,333,460 - -
5,853,322 4,270,440 6,683,668 12,150,968 - -
- - - - 17,178,857 13,185,962
- - - - 8,068,183 9,704,408
- - - - 2,087,548 2,759,463
- - - - 8,098,935 7,159,890
26,851,309$ 27,688,896$ 34,720,460$ 36,945,262$ 35,433,523$ 32,809,723$
Fiscal Year
109
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2003 2004 2005 2006
Revenues
General property taxes17,903,618$ 17,865,757$ 19,071,202$ 20,414,298$
Tax increment collections7,342,270 6,761,934 7,060,744 7,228,002
Special assessments1,019,461 966,879 1,354,264 1,751,219
Franchise fees393,627 450,956 457,421 499,206
License and permits2,182,263 2,247,759 3,240,622 3,488,897
Intergovernmental4,678,735 3,933,540 1,539,169 2,773,350
Charges for services2,076,519 2,279,302 2,466,663 2,691,354
Fines and forfeitures785,227 863,073 742,917 1,023,935
Investment income286,209 443,074 977,956 1,230,264
Rental of property354,266 385,707 315,542 310,145
Parkland dedication- - - -
Other revenues200,551 294,136 227,446 246,797
Total revenues37,222,746 36,492,117 37,453,946 41,657,467
Expenditures
General government5,709,741 5,213,469 5,477,308 5,995,804
Public safety10,352,816 11,125,388 11,373,763 12,431,114
Public works4,142,668 4,386,669 4,882,811 5,233,907
Parks2,974,164 2,954,372 3,146,029 3,300,375
Capital outlay15,539,676 7,772,321 8,227,191 8,980,526
Debt service
Principal5,700,000 6,450,000 6,830,000 5,985,000
Interest and other charges2,908,787 2,484,291 2,543,639 2,107,036
Total expenditures47,327,852 40,386,510 42,480,741 44,033,762
Revenues over (under) expenditures(10,105,106) (3,894,393) (5,026,795) (2,376,295)
Other Financing Sources (Uses)
Transfers in8,752,126 8,367,595 7,797,369 6,865,258
Transfers out(12,805,931) (7,712,368) (6,955,869) (6,027,028)
Sale of capital assets- - 135,045 54,457
Bonds issued1,540,000 - 15,816,165 -
Premium on bonds issued59,219 - - -
Discount on bonds issued- - (36,275) -
Refunding bonds issued6,570,000 - 16,764,721 -
Payment to refunding escrow(6,525,000) - (16,635,000) -
Principal paid by escrow- - - (9,035,000)
Total other financing sources (uses)(2,409,586) 655,227 16,886,156 (8,142,313)
Net change in fund balances(12,514,692)$ (3,239,166)$ 11,859,361$ (10,518,608)$
Debt service as a percentage of
noncapital expenditures27.1%27.4%27.4%23.1%
a The substantial change in debt service as a percentage of noncapital expenditures in 2007 is due
to a change in the way this ratio is calculated. The City did not recalculate previously reported ratios.
Fiscal Year
110
2007a 2008 2009 2010 2011 2012
21,459,001$ 22,242,276$ 23,834,274$ 25,122,113$ 24,972,166$ 25,838,422$
7,793,577 8,578,434 7,587,386 4,488,073 4,083,345 3,536,935
1,750,444 2,442,490 2,703,833 6,746,186 4,502,112 4,975,641
570,871 647,466 667,791 692,288 722,160 815,530
2,909,521 2,915,455 2,104,967 2,410,314 2,724,763 3,155,351
3,699,006 3,005,883 1,507,170 3,726,849 3,059,964 2,032,966
2,748,709 3,093,941 2,905,410 3,014,894 3,181,961 3,708,482
971,486 1,073,174 1,224,983 1,203,767 1,243,426 1,195,054
1,581,702 1,185,899 387,177 474,444 601,250 341,986
355,734 255,607 343,616 426,517 539,091 506,276
- - - - - 702,100
225,839 126,723 160,035 413,400 156,231 240,841
44,065,890 45,567,348 43,426,642 48,718,845 45,786,469 47,049,584
6,544,307 6,235,352 6,895,329 6,523,398 5,739,481 6,624,573
12,985,215 13,788,797 13,692,686 14,177,387 14,668,772 14,985,068
5,787,619 6,189,594 5,911,758 5,898,023 6,000,539 6,277,506
3,455,789 3,693,595 3,688,063 3,524,950 3,633,922 3,852,260
11,991,122 14,666,907 22,997,065 13,505,827 14,235,496 13,622,443
6,190,000 7,090,000 7,415,000 2,975,000 4,480,000 6,620,000
1,677,770 1,967,021 1,841,342 2,584,006 2,278,068 2,292,394
48,631,822 53,631,266 62,441,243 49,188,591 51,036,278 54,274,244
(4,565,932) (8,063,918) (19,014,601) (469,746) (5,249,809) (7,224,660)
7,290,391 7,983,585 11,347,773 2,903,762 5,615,669 4,495,940
(6,370,766) (7,015,785) (10,604,748) (2,137,768) (4,921,463) (3,799,005)
66,845 96,825 34,592 134,329 209,773 94,975
11,735,000 7,755,000 22,950,000 2,535,000 3,320,000 2,748,720
- - 64,765 898,658 108,097 436,148
(53,637) (35,848) (75,621) - - -
- - - 8,285,000 - 1,990,000
- - - (9,094,822) - -
- - - - - -
12,667,833 8,783,777 23,716,761 3,524,159 4,332,076 5,966,778
8,101,901$ 719,859$ 4,702,160$ 3,054,413$ (917,733)$ (1,257,882)$
20.9%22.6%21.7%15.4%17.8%19.4%
Fiscal Year
111
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
6,328,581$ DNADNA77,666$ 63,169$ 65,145$ 27.139%0.01100%2.794$
6,909,477 DNADNA83,448 68,553 70,756 25.565%0.01000%2.618
8,052,704 7,674,983$ 7,668,117$ 91,310 76,343 78,717 24.085%0.00880%2.354
8,713,166 8,541,954 8,536,086 101,948 86,860 89,272 22.613%0.00703%2.317
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
9,179,305 9,179,305 9,025,565 109,013 94,811 97,879 26.247%0.00667%2.799
Source: Hennepin County Taxpayer Services. 2003-2004 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)
2009
Fiscal Direct
2007
2008
2003
2004
2005
2006
2012
Year
2010
2011
112
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
BasicDebtTotal TaxDirect &
RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap
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%
23.131%3.116%26.247%0.007%48.231%27.565%0.215%10.911%112.954%
Source: Hennepin County Taxpayer Services. Some 2003-2004 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.
2012
2007
2008
2003
2004
2005
2006
2009
2010
2011
City RatesOverlapping Rates
ISD #273 EdinaFiscal
Year
113
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
PercentagePercentage
of Totalof Total
Tax CapacityRankCapacityTax CapacityRankCapacity
Southdale Shopping Center2,373,048$ 12.18%2,414,156$ 13.11%
Galleria Shopping Center1,271,050 21.17%863,446 21.11%
Southdale Office Park686,102 30.63%805,652 31.04%
Centennial Lakes Retail670,848 40.62%- 0.00%
Southdale Medical Building620,285 50.57%428,608 80.55%
Centennial Lakes Phase V553,770 60.51%525,414 40.68%
Centennial Lakes Phase IV543,040 70.50%511,854 60.66%
National Car484,530 80.44%- 0.00%
Target439,250 90.40%- 0.00%
Hellmuth & Johnson358,912 100.33%- 0.00%
United Healthcare Corporation- 0.00%512,124 50.66%
7700 France- 0.00%497,686 70.64%
Centennial Lakes Phase II- 0.00%310,402 90.40%
Centennial Lakes Phase III- 0.00%310,402 100.40%
Totals8,000,835$ 7.34%7,179,744$ 9.24%
Source: City of Edina Assessing Office
20032012
Taxpayer
114
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections in
TaxPercentageSubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
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 65,836 21,413,625 99.46%
22,605,669 22,178,719 b 98.11%b 161,896 22,340,615 98.83%
24,153,933 23,484,137 c 97.23%c 47,778 23,531,915 97.42%
25,492,973 24,904,346 97.69%(149,252) 24,755,094 97.11%
25,786,217 25,067,625 97.21%(62,102) 25,005,523 96.97%
26,248,226 25,983,685 98.99%- 25,983,685 98.99%
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.
2012
Collected within the
Fiscal Year of the Levy
2006
2003
2004
2005
2010
2009
2011
Total Collections to Date
Taxes
Payable
2007
2008
115
CITY OF EDINA, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
GeneralPublicTaxPermanentEEEPRec.Utility TotalPercentage
ObligationProject IncrementImprovementRevenueFacility RevenuePrimary of PersonalPer
DebtRevenueBondsRevolvingBondsBondsBondsGovernmentIncomeCapita
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 3.36%1,838
29,700 13,160 2,480 18,260 - 3,550 28,300 95,450 3.64%1,991
27,680 11,865 550 21,550 74 5,945 32,040 99,704 3.67%2,066
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
Business-Type Activities
Year
Fiscal
2012
2003
2004
2005
2006
2009
2010
2007
2008
2011
Governmental Activities
116
CITY OF EDINA, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
Percentage of
General Obligation Debt Property Value a Per Capita
8,165$ 0.13%172$
7,295 0.11%151
11,765 0.15%248
5,670 0.07%121
10,990 0.11%233
10,420 0.10%216
24,020 0.24%499
31,800 0.32%663
29,700 0.31%615
27,680 0.30%574
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.
Year
Fiscal
2007
2012
2010
2009
2008
2003
2004
2005
2006
2011
117
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2012
Net GeneralPercentage
Obligation Bonded ApplicableCity Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County673,838,501$ 7.60%51,211,726$
Hennepin Suburban Park District72,840,200 10.29%7,495,257
Hennepin Regional Rail Authority38,770,299 7.60%2,946,543
School Districts:
ISD No. 273 (Edina)61,869,760 98.52%60,954,088
ISD No. 270 (Hopkins)148,613,052 8.50%12,632,109
ISD No. 272 (Eden Prairie)73,478,156 1.07%786,216
ISD No. 280 (Richfield)22,179,142 22.91%5,081,241
ISD No. 283 (St. Louis Park)50,057,386 0.02%10,011
Metro Council193,377,711 3.46%6,690,869
Total Overlapping Debt1,335,024,207 147,808,060
City of Edina62,796,405 100.00%62,796,405
Total Overlapping and Direct Debt1,397,820,612$ 210,604,465$
Ratio of debt per capita (48,262 population)4,364$
Ratio of debt to estimated market valuation of $9,179,305,3002.29%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
118
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2003 2004 2005 2006 2007 2008a 2009 2010 2011 2012
Debt limit 138,190$ 160,674$ 173,867$ 191,974$ 199,775$ 302,385$ 301,369$ 298,494$ 282,958$ 270,767$
Total net debt
applicable
to limit 20,200 18,890 29,785 21,750 26,380 25,095 46,670 45,170 42,860 39,545
Legal debt
margin 117,990$ 141,784$ 144,082$ 170,224$ 173,395$ 277,290$ 254,699$ 253,324$ 240,098$ 231,222$
Total net debt
applicable to
the limit as a
percentage of
debt limit 14.62%11.76%17.13%11.33%13.20%8.30%15.49%15.13%15.15%14.60%
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.
270,766,953
11,865,000
231,221,953$
Fiscal Year
9,025,565,085$
27,680,000
39,545,000
Legal Debt Margin Calculation for Fiscal Year 2012
119
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
20121,362,444 - 1,362,444 1,295,000 548,691 1,843,691 0.74
Tax Increment Bonds
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
20123,536,935 - 3,536,935 1,930,000 48,445 1,978,445 1.79
Permanent Improvement Revolving Bonds (Special Assessment)
200685,656 - 85,656 - 43,366 43,366 1.98
2007391,921 - 391,921 160,000 46,694 206,694 1.90
2008564,534 - 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
20122,520,862 - 2,520,862 1,375,000 557,514 1,932,514 1.30
Utility Bond
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
201217,723,103 11,811,468 5,911,635 2,360,000 613,226 2,973,226 1.99
Recreational Facility Bonds
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)
20125,679,972 6,240,222 (560,250) 520,000 105,000 625,000 (0.90)
Debt service requirementsFiscal
Year
120
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Estimated
PersonalPer CapitaHigh School
IncomePersonalGraduationUnemployment
Population(In thousands)IncomeRateRate
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%
48,2622,717,923 56,316 97.4%4.56%
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. 2011 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.
2012
2009
2010
Fiscal
Year
2008
2007
2006
2005
2004
2003
2011
121
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total City Total City
EmployeesRankEmployment EmployeesRankEmployment
Fairview Southdale Hospital1,000 14.39%2,400 110.46%
Macy's (Marshall Field's or Dayton's)1,000 24.39%500 52.18%
BI Worldwide1,000 34.39%DNADNADNA
Universal Hospital Service Inc.1,000 44.39%DNADNADNA
Edina Public Schools ISD #273600 52.64%DNADNADNA
Promenade Salon Concepts500 62.20%DNADNADNA
Regis Salons Division500 72.20%DNADNADNA
Regis Franchise Division500 82.20%DNADNADNA
Master Cuts Division500 92.20%DNADNADNA
Smart Style Family Hair Care500 102.20%DNADNADNA
Jerry's Enterprises, Inc.- 0.00%2,000 28.71%
Golden Valley Microwave Foods- 0.00%650 32.83%
Health Risk Management Inc.- 0.00%552 42.41%
JC Penny Co.- 0.00%400 61.74%
Norwest Funding- 0.00%358 71.56%
Nash Finch Co.- 0.00%350 81.52%
International Dairy Queen Inc.- 0.00%300 91.31%
Roach Organization Inc.- 0.00%140 100.61%
Totals7,100 31.20%7,650 33.33%
Sources:
2012 data from www.mnprospector.com and ISD #273's 2011 annual report. For data obtained from
www.mnprospector.com, low number in the range was used.
2003 data from previous CAFR.
DNA: Historical data is not available
20032012
Employer
122
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Government
Administration8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 6.85
Communications- - - - - - - - - 4.65
Planning3.75 3.75 3.75 3.75 3.75 3.75 3.85 3.85 3.85 3.85
Finance5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.25 5.25
Elections1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Assessing7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Public Works
Administration1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50
Engineering6.50 7.50 7.50 7.50 8.50 8.50 8.50 8.50 8.50 10.50
Supervision2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.30 2.30
Maintenance28.00 28.00 28.00 28.00 28.00 28.00 27.00 27.00 27.00 28.00
Public Safety
Police Protection68.00 66.00 69.00 69.00 70.00 70.00 71.00 70.00 67.50 68.00
Animal Control1.00 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 33.00 33.00 33.00 33.00 32.00 32.00
Public Health2.75 2.75 2.75 2.75 2.75 2.75 2.65 2.65 2.65 2.65
Inspections6.50 6.50 6.50 6.50 7.50 7.50 7.50 7.50 7.50 7.75
Parks & Recreation
Administration7.00 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80
Maintenance16.00 16.50 16.40 16.40 16.40 16.40 16.40 16.40 16.40 16.40
Central Services
General2.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00 5.00 5.00
City Hall1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.00
Public Works Bldg0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 1.00
Equipment Ops6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50
Utilities 14.50 15.50 15.75 15.75 15.25 15.75 18.75 18.75 17.20 16.70
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 0.55
Golf Course 15.00 13.00 13.00 13.00 13.00 13.00 13.00 13.00 11.00 12.00
Arena 6.00 6.00 6.00 6.00 6.00 6.00 5.00 5.00 5.00 5.00
Art Center 3.00 3.00 2.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park 7.00 7.00 7.00 6.00 7.00 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 4.00 4.00 5.00 5.00 4.50 -
Total 270.00 268.50 271.50 270.00 277.50 278.00 281.00 280.00 274.00 277.00
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
123
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Government
Total City employees879 870 909 887 890 918 885 869 892 989
Votes cast a 10,721 31,730 1,367 26,270 7,930 31,512 2,733 25,463 7,957 31,841
Public Works
Asphalt placed (tons)- - - 9,000 8,000 7,500 9,500 7,643 8,500 9,000
Concrete (cu. yds.)- - - 650 850 480 640 503 558 667
Public Safety
Crimes reported2,073 1,983 1,908 1,937 2,010 2,025 1,985 1,890 1,590 NA
Fire calls1,062 1,060 1,055 963 1,012 913 852 910 960 858
Medical calls3,030 3,199 3,423 3,470 3,510 3,516 3,496 3,599 3,652 3,946
Central Services
Vehicle fixes- - - 2,398 2,460 2,967 2,539 2,431 2,331 2,546
Utilities
Daily consumption b - - - 7,209 7,372 7,376 7,596 6,790 6,909 7,613
Aquatic Center
Attendance96,419 88,636 139,415 120,406 114,173 110,000 64,836 86,654 77,696 139,909
Golf Course
Total rounds played123,770 116,734 113,679 114,737 112,821 112,663 117,819 101,314 95,771 96,496
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
124
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Public Works
Miles of streets224 224 224 224 224 224 224 224 224 224
City parking ramps4 4 4 4 4 4 4 4 4 4
Public Safety
Fire stations2 2 2 2 2 2 2 2 2 2
Parks & Recreation
City parks40 40 40 40 40 40 40 40 40 40
Acreage of parks1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553 1,553
Park buildings27 27 27 27 27 27 27 27 27 27
Utilities
Wells18 18 18 18 19 19 19 18 18 18
Watermain miles199 199 199 199 199 199 199 199 199 199
Sanitary sewer miles186 186 186 186 186 186 186 186 186 186
Sewer connections13,984 14,851 14,851 14,851 14,851 14,851 13,933 13,933 13,933 13,979
Arena
Ice sheets3 3 3 3 3 3 3 3 3 3
Source: Various City departments
Fiscal Year
Function
125