HomeMy WebLinkAbout2013 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 / noun1. The preeminent place for living, learning, raising families & doing business
COMPREHENSIVE
FOR THE FISCAL YEARENDED DEC. 31, 2013
ANNUAL FINANCIALREPORT
City of Edina, Minnesota
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2013
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 - Agency Funds34
Notes to the Financial Statements35
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund69
Budgetary Comparison Schedule - Housing and Redevelopment Authority (HRA)74
Other Post-Employment Benefits Plan Schedule of Funding Progress75
Notes to Required Supplementary Information76
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Special Revenue Funds80
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds81
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 82
Special Revenue Fund - Police Special Revenue
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 83
Special Revenue Fund - Braemar Memorial
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 84
Special Revenue Fund - Pedestrian and Cycle Safety
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 85
Governmental Fund - Debt Service
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 88
Governmental Fund - Construction
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 89
Combining Statement of Net Position - Nonmajor Proprietary Funds92
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Nonmajor Proprietary Funds93
Combining Statement of Cash Flows - Nonmajor Proprietary Funds94
Combining Statement of Changes in Assets and Liabilities - Agency Funds97
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates99
Combined Schedule of Bonded Indebtedness100
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #1202102
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1203103
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207 104
Schedule of Sources and Uses of Public Funds for Southdale 2 - #1208105
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component 108
Changes in Net Position 110
Fund Balances of Governmental Funds112
Changes in Fund Balances of Governmental Funds114
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property116
Direct and Overlapping Tax Capacity Rates117
Principal Property Tax Payers 118
Property Tax Levies and Collections119
Debt Capacity:
Ratios of Outstanding Debt by Type120
Ratios of General Bonded Debt Outstanding121
Direct and Overlapping Governmental Activities Debt122
Legal Debt Margin Information 123
Pledged Revenue Coverage 124
Demographic and Economic Information:
Demographic and Economic Statistics125
Principal Employers 126
Operating Information:
Full-Time Equivalent City Government Employees by Function127
Operating Indicators by Function128
Capital Asset Statistics by Function129
This page left blank intentionally.
June 9, 2014
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, 2013.
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 unmodified ("clean") opinion on the City's financial statements for the year ended
December 31, 2013. 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 48,829. 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.
CITIY OF EDINA
4801 West 50th Street • Edina, Minnesota 55424
www.EdinaMN.gov • 952-927-8861 • Fax 952-826-0390
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 $12,573,457 unassigned fund balance in the general fund. This
amount is $2,049,968 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.
2
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, 2012. This was the
seventh 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
3
13
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Edina
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2012
Executive Director/CEO
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2013
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. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
/\/MIKR
CERTIFIED 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, 2013, and the related notes to the fmancial statements, which
collectively comprise the City's basic fmancial 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 fmancial 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 fmancial 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 fmancial 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 fmancial 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 fmancial 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, 2013, 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 (GASB) 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
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 fmancial 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.
Emphasis of Matter
As described in Note 1 of the notes to basic financial statements, in 2013, the City adopted new
accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities. Our
opinion is not modified with respect to this matter.
(continued)
8
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 9, 2014 on
our consideration of the City's internal control over fmancial 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 fmancial 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
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Minneapolis, Minnesota
June 9, 2014
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, 2013. 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
$220,980,089 (net position). Of this amount, $50,109,776 (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 $11,579,920 from current year operations. $4,884,510
of this increase is due to special assessment revenues, which help support our road
reconstruction program. Also, $4,572,422 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 $45,292,135, a decrease of $2,356,722 in comparison with the prior year.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$12,573,457 or 39% of total general fund expenditures.
The City’s total bonded debt decreased by $9,091,375 during the current fiscal year, from
$99,703,720 to $90,612,345. The City issued new debt during the year consisting of $9,390,000
general obligation bonds to finance various street infrastructure improvement projects, the new
golf dome and refunding of $5,735,000 of debt.
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 $220,980,089 at the close of the most
recent fiscal year.
The largest portion of the City's net position ($149,969,357 or 68%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2013 2012 - Restated 2013 2012 - Restated 2013 2012 - Restated
Current and
other assets66,664,337$ 67,078,680$ 21,429,233$ 25,951,920$ 88,093,570$ 93,030,600$
Capital assets137,809,952 135,922,566 102,514,577 97,044,842 240,324,529 232,967,408
Total assets204,474,289$ 203,001,246$ 123,943,810$ 122,996,762$ 328,418,099$ 325,998,008$
Long-term liabilities
outstanding56,200,689$ 57,536,627$ 32,914,580$ 35,799,997$ 89,115,269$ 93,336,624$
Other liabilities10,898,734 14,868,386 7,424,007 8,392,829 18,322,741 23,261,215
Total liabilities67,099,423$ 72,405,013$ 40,338,587$ 44,192,826$ 107,438,010$ 116,597,839$
Net position:
Net investment in
capital assets83,842,970$ 78,644,392$ 66,126,387$ 63,766,144$ 149,969,357$ 142,410,536$
Restricted20,289,579 23,215,910 611,377 876,909 20,900,956 24,092,819
Unrestricted33,242,317 28,735,931 16,867,459 14,160,883 50,109,776 42,896,814
Total net position137,374,866$ 130,596,233$ 83,605,223$ 78,803,936$ 220,980,089$ 209,400,169$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net position ($20,900,956) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position
($50,109,776) 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 $7,212,962 in unrestricted net position, largely due to positive
operating results in the Utility fund and a large new assessment for the Richmond Hills neighborhood
reconstruction project.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $11,579,920 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2013 2012 - Restated 2013 2012 - Restated 2013 2012 - Restated
Revenues:
Program revenues:
Charges for services9,517,662$ 8,606,777$ 39,751,184$ 39,039,592$ 49,268,846$ 47,646,369$
Operating grants and
contributions2,283,007 1,685,026 516,242 1,042,195 2,799,249 2,727,221
Capital grants and
contributions6,372,735 9,137,011 - - 6,372,735 9,137,011
General revenues:
Property taxes26,894,161 25,884,662 - - 26,894,161 25,884,662
Other taxes5,873,905 4,352,465 - - 5,873,905 4,352,465
Gain on disposal
of assets16,654 - 17,587 2,644,854 34,241 2,644,854
Insurance recovery816,654 - - - 816,654 -
Unrestricted investment
earnings(96,390) 341,986 (77,848) 113,177 (174,238) 455,163
Total revenues51,678,388 50,007,927 40,207,165 42,839,818 91,885,553 92,847,745
Expenses:
General government8,256,261 12,598,979 - - 8,256,261 12,598,979
Public safety17,117,693 16,598,423 - - 17,117,693 16,598,423
Public works11,502,250 9,437,285 - - 11,502,250 9,437,285
Parks6,132,709 5,904,724 - - 6,132,709 5,904,724
Interest on long-term debt2,024,749 2,144,811 - - 2,024,749 2,144,811
Utilities- - 13,748,186 12,635,286 13,748,186 12,635,286
Liquor- - 12,261,413 11,740,744 12,261,413 11,740,744
Aquatic center- - 822,932 865,157 822,932 865,157
Golf course- - 3,199,815 3,289,416 3,199,815 3,289,416
Arena- - 2,272,510 2,220,965 2,272,510 2,220,965
Community activity
centers- - 2,967,115 2,842,139 2,967,115 2,842,139
Total expenses 45,033,662 46,684,222 35,271,971 33,593,707 80,305,633 80,277,929
Increase in net position
before transfers6,644,726 3,323,705 4,935,194 9,246,111 11,579,920 12,569,816
Transfers133,907 696,935 (133,907) (696,935) - -
Increase in net position6,778,633 4,020,640 4,801,287 8,549,176 11,579,920 12,569,816
Net position - January 1130,596,233 126,575,593 78,803,936 70,254,760 209,400,169 196,830,353
Net position - December 31137,374,866$ 130,596,233$ 83,605,223$ 78,803,936$ 220,980,089$ 209,400,169$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities increased the City's net position by $6,778,633, accounting for 59% of the
total growth in net position. Key elements of this increase are as follows:
Property tax revenues increased by $1,009,499 (3.9%) during the year, which is more than
the property tax levy increase of 1.9% outlined in our 2013 budget due to improved collection
rate.
The City also collected $3,981,938 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 $14,531,375 in principal payments during 2013,
including the tax increment debt.
General government expenses decreased by $4,342,718 in 2013 compared to 2012. The
majority of this decrease is due to less being spent on the Southdale 2 Tax Increment
Financing District in 2013.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services18%
Operating grants and contributions
5%
Capital grants and
contributions
12%
Property taxes
52%
Other taxes11%
Other2%
Revenues by Source -Governmental Activities
-
2
4
6
8
10
12
14
16
18
Generalgovernment Public safetyPublic worksParksInterest onlong-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 $4,801,287 accounting for 41% 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 $4,572,422 for 2013. 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 $133,907 to governmental activities during
2013 to provide cash flow for operational and capital improvement needs.
Charges for
services
99%
Operating grants
and
contributions
1%
Revenues by Source -Business-type Activities
-
2
4
6
8
10
12
14
16
18
20
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 $45,292,135, a decrease of $2,356,722 in comparison with the prior year. Approximately
28% of this total amount ($12,573,457) constitutes unassigned fund balance. The remainder of the
fund balance is 1) nonspendable due to prepaid items ($13,322), 2) restricted by external creditors,
grantors, laws or regulations ($22,791,627), or 3) assigned by internal constraints ($9,913,729).
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 $12,573,457. As a measure of the general fund’s
liquidity, unassigned fund balance represents 39% of total general fund expenditures.
The fund balance of the City’s general fund decreased by $507,499 during the current fiscal year. Key
factors in this decrease are as follows:
Total general fund revenues were $2,282,106 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 31.8% in the
current fiscal year after a 16.3% and 13% increase in 2012 and 2011, respectively.
Total general fund expenditures were $396,733 over budget. Much of this overage occurred
in the fire protection and communication departments. The fire protection overage was a
result of a change made to the way we account for fire aid as requested by the State auditor.
The communications department difference was due to the hiring of a new employee to
handle the Southwest Suburban Cable commission that was not budgeted for.
The liquor fund transferred $765,100 of profits to the general fund, as planned in the 2013
budget.
Transfers out of the general fund totaled $2,392,872 for a variety of purposes planned as part
of the 2013 budget process.
The Housing and Redevelopment Authority fund balance decreased by $700,505 in the current fiscal
year because there was a large amount spent on the Centennial Tax Increment Financing District
from tax increment funds during the year.
The debt service fund has a total fund balance of $6,246,769, all of which is restricted for the
payment of debt service. The net decrease in fund balance during the current year in the debt service
fund was $3,457,639. Fund balance decreased during the year as a result of refunding 2007C and
2009B bonds for $3,710,000 and $5,735,000 respectively.
The construction fund balance increased by $937,208 in 2013 due to $2,148,514 in transfers to
finance various capital projects and equipment purchases. Also, new debt was issued in 2013 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 $14,021,972. The total
growth in net position from current year operations was $4,472,422. Operating revenues and
expenses in the utilities fund increased by .6% and 9.2%, respectively, in 2013. Revenues increased
due to rate increases that are intended to help replace aging infrastructure and expenses increased
as a result of higher contractual service and depreciation expenses related to infrastructure projects.
The City invested $6,670,868 in utility fund capital assets during 2013.
Unrestricted net position of the liquor fund at the end of the year amounted to $1,704,172. Total net
position increased by $127,911. 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 $1,340,100 to other funds during 2013. 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 $213,760.
Aquatic center revenues decreased by 7.4% from 2012 due to less favorable weather for the aquatic
center in 2013. The aquatic center remains profitable.
Unrestricted net position of the golf course fund at the end of the year amounted to a deficit of
($1,362,075), a decrease of $1,571,300 from the prior year. Prior to 2012, 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 was the result of insurance proceeds
received for the collapse of the golf dome which was 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 ($221,555),
an increase of $2,528,104 from the prior year. The large increase in 2013 is the result of the
completed remodel in 2013 which increased revenues by 33.8%, mostly in building rental and
concession sales.
General Fund Budgetary Highlights
During the year there was a $2,753,090 increase in appropriations between the original and final
amended budget. The majority of the increase was a transfer to the construction, arena, and golf
course funds of unassigned general fund balance according to the City’s fund balance policy.
During the year, revenues were $2,282,106 more than budget, as the improving economy affected
our permits and charges for services revenues, which exceeded budget by $1,542,584.
During the year, expenses were $396,733 more than budget due to a newly created residential
reconstruction position that was not budgeted for, and is funded by the additional permit revenue
received. In addition, a change was made to the way the City accounts for fire aid as requested by
the State Auditor.
Many City departments were under budget for the year, particularly the public health department,
which was under staffed during the year because a position that came open was not immediately
filled. The parks maintenance department was under budget due partially to lower than expected
paths and hard surfaces repair spending. The City also saved money by continuing to replace
fluorescent light bulbs with light-emitting diode (LED) bulbs.
Management’s Discussion and Analysis (Continued)
20
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, 2013, amounted to $240,324,529 (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 3.2 percent (a 1.4 percent increase for governmental activities and a 5.6 percent increase for
business-type activities).
Major capital asset events during the current fiscal year included the following:
The City completed construction on the arena remodel in 2013; total construction cost was
$4,040,495.
The City completed construction on new water treatment plant #6; total construction cost was
$6,815,347.
A variety of street construction, sidewalk and traffic signal projects began in 2013.
A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer, construction in progress as of the close of the fiscal year reached $10,794,258.
Construction of the new golf dome continued in 2013, construction in progress as of the close
of the fiscal year has reached $3,544,183.
City of Edina’s Capital Assets
(Net of Depreciation)
2013 2012 2013 2012 2013 2012
Land and land
improvements26,204,303$ 24,052,302$ 4,984,372$ 5,258,708$ 31,188,675$ 29,311,010$
Easements111,000 111,000 - - 111,000 111,000
Buildings and structures47,247,194 48,966,028 11,009,519 7,365,467 58,256,713 56,331,495
Machinery and equipment6,487,848 7,104,264 2,657,310 2,786,411 9,145,158 9,890,675
Infrastructure43,539,660 42,197,555 69,364,146 61,707,121 112,903,806 103,904,676
Parks7,472,349 7,820,810 - - 7,472,349 7,820,810
Construction in progress6,747,598 5,670,607 14,499,230 19,927,135 21,246,828 25,597,742
Total137,809,952$ 135,922,566$ 102,514,577$ 97,044,842$ 240,324,529$ 232,967,408$
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 $90,612,345, a decrease of $9,091,375 from 2012. This decrease resulted from the
refunding of 2007C and 2009B bonds and the payment of previously scheduled principal payments
offset by $9,390,000 in new debt issued.
$31,390,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount increased from 2012 due to a new debt issue that refunded the
2009B bond.
$18,360,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount decreased from 2012 due to regularly scheduled principal
payments on outstanding issues and refunding of the 2007C bonds offset by new debt issued in the
amount of $2,555,000.
Management’s Discussion and Analysis (Continued)
21
Also outstanding is $5,640,000 public project revenue bonds which financed two gymnasiums and the
new public works facility. This amount decreased in 2013 due to regularly scheduled principal
payments on outstanding issues and the refunding of the 2009B bond.
There is a total of $35,160,000 in revenue bonds for improvements to the enterprise funds. This
amount decreased $2,825,000 during the year due to regularly scheduled principal payments on
outstanding issues, offset by issuance of a new bond to finance the cost of the new golf dome.
City of Edina’s Outstanding Debt
2013 2012 2013 2012 2013 2012
Tax increment bonds-$ 550,000$ -$ -$ -$ 550,000$
General obligation bonds31,390,000 27,680,000 - - 31,390,000 27,680,000
Public improvement bonds18,360,000 21,550,000 - - 18,360,000 21,550,000
Public project revenue bonds5,640,000 11,865,000 - - 5,640,000 11,865,000
Edina emerald energy program bonds62,345 73,720 - - 62,345 73,720
Revenue bonds- - 35,160,000 37,985,000 35,160,000 37,985,000
Total55,452,345$ 61,718,720$ 35,160,000$ 37,985,000$ 90,612,345$ 99,703,720$
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 $263,958,018. Only $37,030,000 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 2013 was 3.98%, 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-eight percent of students graduate, with ninety-four
percent pursuing some sort of post-secondary education.
Management’s Discussion and Analysis (Continued)
22
Property values in Edina increased at a rapid pace for several years through 2006, but values
declined from 2007-2012 and are back on the rise in 2013. Estimated market value of real estate
increased 1.2% for taxes payable in 2013.
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2004200520062007200820092010201120122013
Market Value and Tax Capacity
Annual Changes Tax Capacity
Market Value
The City collects property taxes based on tax capacity, which roughly equals estimated market value
multiplied by class rates for different types of parcels (commercial, residential, etc.). Class rates are
set by state statute. Tax capacity for real estate increased 1.4% for taxes payable in 2013, but had
been negative from 2009 through 2012.
All of these factors above were considered in preparing the City’s budget for the 2014 fiscal year. The
City’s adopted 2014 budget includes a property tax levy of $27,454,872 for all funds, an increase of
2.65% from the 2013 levy.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2013
GovernmentalBusiness-type
Activities Activities Total
Assets:
Current assets:
Cash and investments44,531,347$ 13,742,272$ 58,273,619$
Restricted cash and investments2,646,731 760,206 3,406,937
Accrued interest 92,355 38,502 130,857
Accounts receivable, net1,724,842 4,916,184 6,641,026
Special assessments receivable15,278,361 308,900 15,587,261
Due from other governments792,914 4,498 797,412
Prepaid items13,322 365,523 378,845
Inventory - 1,293,148 1,293,148
Total current assets65,079,872 21,429,233 86,509,105
Noncurrent assets:
Investment in joint powers agreement1,584,465 - 1,584,465
Nondepreciable capital assets 25,495,719 15,588,195 41,083,914
Depreciable capital assets (net)112,314,233 86,926,382 199,240,615
Total noncurrent assets 139,394,417 102,514,577 241,908,994
Total assets204,474,289 123,943,810 328,418,099
Liabilities:
Current liabilities:
Accounts payable2,222,039 943,123 3,165,162
Salaries payable1,246,384 323,726 1,570,110
Accrued interest payable747,302 456,624 1,203,926
Contracts payable315,745 973,501 1,289,246
Due to other governments30,888 188,346 219,234
Deposits payable 533,084 112,216 645,300
Unearned revenue158,831 103,312 262,143
Compensated absences payable1,559,461 363,159 1,922,620
Bonds payable4,085,000 3,960,000 8,045,000
Total current liabilities10,898,734 7,424,007 18,322,741
Noncurrent liabilities:
Net OPEB obligation1,333,029 154,946 1,487,975
Compensated absences payable2,339,192 544,739 2,883,931
Bonds payable, net 52,528,468 32,214,895 84,743,363
Total noncurrent liabilities56,200,689 32,914,580 89,115,269
Total liabilities67,099,423 40,338,587 107,438,010
Net position:
Net investment in capital assets83,842,970 66,126,387 149,969,357
Restricted for tax increments11,495,886 - 11,495,886
Restricted for debt service6,246,769 611,377 6,858,146
Restricted for pedestrian and cyclist improvements492,362 - 492,362
Restricted for energy efficiency projects816,654 - 816,654
Restricted for parkland dedication185,395 - 185,395
Restricted for police special revenue717,343 - 717,343
Restricted for braemar golf donations335,170 - 335,170
Unrestricted33,242,317 16,867,459 50,109,776
Total net position137,374,866$ 83,605,223$ 220,980,089$
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, 2013
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government8,256,261$ 1,259,908$ 630,855$ -$
Public safety17,117,693 7,410,755 1,149,468 74,520
Public works11,502,250 347,891 213,868 6,297,429
Parks6,132,709 499,108 170,036 786
Interest on long-term debt2,024,749 - 118,780 -
Total government activities45,033,662 9,517,662 2,283,007 6,372,735
Business-type activities:
Utilities13,748,186 17,831,225 489,387 -
Liquor12,261,413 13,711,557 - -
Aquatic center822,932 928,055 765 -
Golf course3,199,815 2,711,743 - -
Arena2,272,510 1,942,971 17,984 -
Community activity centers2,967,115 2,625,633 8,106 -
Total business-type activities35,271,971 39,751,184 516,242 -
Total primary government80,305,633$ 49,268,846$ 2,799,249$ 6,372,735$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
GovernmentalBusiness-type
ActivitiesActivitiesTotal
(6,365,498)$ -$ (6,365,498)$
(8,482,950) - (8,482,950)
(4,643,062) - (4,643,062)
(5,462,779) - (5,462,779)
(1,905,969) - (1,905,969)
(26,860,258) - (26,860,258)
- 4,572,426 4,572,426
- 1,450,144 1,450,144
- 105,888 105,888
- (488,072) (488,072)
- (311,555) (311,555)
- (333,376) (333,376)
- 4,995,455 4,995,455
(26,860,258) 4,995,455 (21,864,803)
General revenues:
Property taxes26,894,161 - 26,894,161
Tax increment collections3,981,938 - 3,981,938
Franchise taxes1,891,967 - 1,891,967
Unrestricted investment earnings(96,390) (77,848) (174,238)
Gain on disposal of capital assets16,654 17,587 34,241
Insurance recovery816,654 - 816,654
Transfers133,907 (133,907) -
Total general revenues and transfers33,638,891 (194,168) 33,444,723
Change in net position6,778,633 4,801,287 11,579,920
Net position - beginning as previously reported131,448,002 79,033,662 210,481,664
Change in accounting principle(851,769) (229,726) (1,081,495)
Net position - beginning as restated130,596,233 78,803,936 209,400,169
Net position - ending137,374,866$ 83,605,223$ 220,980,089$
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, 2013
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityService ConstructionFundsFunds
Assets
Cash and Investments15,923,685$ 12,478,484$ 6,051,579$ 8,841,672$ 1,235,927$ 44,531,347$
Restricted cash and
investments- - 144,438 2,502,293 - 2,646,731
Accrued interest 31,109 33,396 6,690 19,393 1,767 92,355
Accounts receivable560,469 - - 62,510 1,101,863 1,724,842
Special assessments
receivable- - 14,622,874 655,487 - 15,278,361
Due from other governments522,314 9,823 45,940 57,836 157,001 792,914
Prepaid items13,322 - - - - 13,322
Total assets 17,050,899$ 12,521,703$ 20,871,521$ 12,139,191$ 2,496,558$ 65,079,872$
Liabilities
Accounts payable1,075,132$ 719,110$ -$ 310,177$ 117,620$ 2,222,039$
Salaries payable1,235,997 5,209 - 5,178 - 1,246,384
Contracts payable - - - 298,336 17,409 315,745
Due to other governments21,645 9,243 - - - 30,888
Deposits payable227,659 292,500 - 12,925 - 533,084
Unearned revenue158,831 - - - - 158,831
Total liabilities2,719,264 1,026,062 - 626,616 135,029 4,506,971
Deferred inflows of resources
Unavailable revenue - taxes- - 1,878 527 - 2,405
Unavailable revenue -
special assessments- - 14,622,874 655,487 - 15,278,361
Total deferred inflows of
resources- - 14,624,752 656,014 - 15,280,766
Fund balance:
Nonspendable13,322 - - - - 13,322
Restricted185,395 11,495,641 6,246,769 2,502,293 2,361,529 22,791,627
Assigned1,559,461 - - 8,354,268 - 9,913,729
Unassigned12,573,457 - - - - 12,573,457
Total fund balance14,331,635 11,495,641 6,246,769 10,856,561 2,361,529 45,292,135
Total liabilities, deferred
inflows of resources,
and fund balances17,050,899$ 12,521,703$ 20,871,521$ 12,139,191$ 2,496,558$ 65,079,872$
Fund balance reported above 45,292,135$
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.137,809,952
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.15,280,766
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.(62,592,452)
Net position of governmental activities (page 23)137,374,866$
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, 2013
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes22,006,527$ -$ 3,892,598$ 992,631$ -$ 26,891,756$
Tax increment collections- 3,981,938 - - - 3,981,938
Franchise taxes794,261 - - 79,398 1,018,308 1,891,967
Special assessments- - 2,837,227 2,047,283 - 4,884,510
License and permits4,122,305 - - 28,207 - 4,150,512
Intergovernmental1,234,425 - 118,780 884,790 271,171 2,509,166
Charges for services3,564,341 - - 103,271 - 3,667,612
Fines and forfeitures1,017,219 - - - 92,491 1,109,710
Investment income53,583 (116,524) (19,712) (18,179) 4,442 (96,390)
Rental of property518,862 - - - - 518,862
Other revenues5,539 - - 272,282 786 278,607
Total revenues33,317,062 3,865,414 6,828,893 4,389,683 1,387,198 49,788,250
Expenditures:
Current:
General government5,883,436 1,189,871 - 84,909 193,340 7,351,556
Public safety15,749,935 - - 12,912 96,775 15,859,622
Public works6,690,986 - - 247,624 80,004 7,018,614
Parks3,872,432 - - 43,136 - 3,915,568
Capital outlay:
General government- 2,709,357 - 620,354 - 3,329,711
Public safety- - - 465,548 - 465,548
Public works- - - 4,467,625 462,020 4,929,645
Parks- 1,699 - 1,963,604 - 1,965,303
Debt service:
Bond principal - - 14,531,375 - - 14,531,375
Interest and fiscal charges- - 2,270,259 - - 2,270,259
Total expenditures32,196,789 3,900,927 16,801,634 7,905,712 832,139 61,637,201
Revenues over
(under) expenditures1,120,273 (35,513) (9,972,741) (3,516,029) 555,059 (11,848,951)
Other financing sources (uses):
Transfers in765,100 - 559,350 2,148,514 - 3,472,964
Transfers out(2,392,872) (664,992) - (281,193) - (3,339,057)
Sale of capital assets- - - 61,642 - 61,642
Insurance recovery- - - - 816,654 816,654
Bonds issued- - 99,433 2,455,567 - 2,555,000
Refunding bonds issued- - 5,710,000 - - 5,710,000
Premium (discounts) on
bonds issued- - 146,319 68,707 - 215,026
Total other financing
sources (uses)(1,627,772) (664,992) 6,515,102 4,453,237 816,654 9,492,229
Net increase (decrease)
in fund balance(507,499) (700,505) (3,457,639) 937,208 1,371,713 (2,356,722)
Fund balance - January 114,839,134 12,196,146 9,704,408 9,919,353 989,816 47,648,857
Fund balance - December 3114,331,635$ 11,495,641$ 6,246,769$ 10,856,561$ 2,361,529$ 45,292,135$
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, 2013
Amounts reported for governmental activities in the
statement of activities (page 24-25) are different because:
Net changes in fund balances - total governmental funds (page 28)(2,356,722)$
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.1,932,374
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.(44,988)
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.1,056,830
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 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.6,051,349
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.139,790
Change in net position of governmental activities (page 25)6,778,633$
The accompanying notes are an integral part of these financial statements.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Assets:
Current assets:
Cash and investments9,895,458$ 995,734$ -$ -$ -$ 2,851,080$ 13,742,272$
Restricted cash and investments- - - 760,206 - - 760,206
Interest receivable21,963 4,874 2,302 1,373 - 7,990 38,502
Accounts receivable, net4,106,356 - - 619,464 182,536 7,828 4,916,184
Special assessments receivable308,900 - - - - - 308,900
Due from other funds442,991 491,452 - - - - 934,443
Due from other governments4,498 - - - - - 4,498
Prepaid expenses365,523 - - - - - 365,523
Inventory 12,492 1,185,311 - 84,622 - 10,723 1,293,148
Total current assets15,158,181 2,677,371 2,302 1,465,665 182,536 2,877,621 22,363,676
Noncurrent assets:
Advances to other funds- - 1,000,000 - - - 1,000,000
Net capital assets81,748,817 1,374,113 2,311,400 7,328,480 7,876,009 1,875,758 102,514,577
Total noncurrent assets81,748,817 1,374,113 3,311,400 7,328,480 7,876,009 1,875,758 103,514,577
Total assets96,906,998 4,051,484 3,313,702 8,794,145 8,058,545 4,753,379 125,878,253
Liabilities:
Current liabilities:
Accounts payable345,029 423,600 1,381 33,806 65,984 73,323 943,123
Salaries payable71,938 76,219 - 51,499 46,075 77,995 323,726
Accrued interest payable393,224 - 4,554 - 58,846 - 456,624
Contracts payable256,094 - - 595,442 69 121,896 973,501
Due to other funds- - 171,184 588,910 157,403 16,946 934,443
Due to other governments11,731 153,430 46 3,256 8,003 11,880 188,346
Deposits payable112,216 - - - - - 112,216
Unearned revenue- 9,736 - 83,801 - 9,775 103,312
Compensated absences payable 63,187 113,145 - 107,349 20,061 59,417 363,159
Bonds payable - current 3,670,000 - 80,000 - 210,000 - 3,960,000
Total current liabilities4,923,419 776,130 257,165 1,464,063 566,441 371,232 8,358,450
Noncurrent liabilities:
Net OPEB obligation44,104 27,351 - 37,890 17,628 27,973 154,946
Compensated absences payable94,780 169,718 - 161,023 30,091 89,127 544,739
Bonds payable, net of
unamortized discounts25,964,905 - 241,620 1,138,325 4,870,045 - 32,214,895
Advances from other funds- - - 1,000,000 - - 1,000,000
Total noncurrent liabilities26,103,789 197,069 241,620 2,337,238 4,917,764 117,100 33,914,580
Total liabilities31,027,208 973,199 498,785 3,801,301 5,484,205 488,332 42,273,030
Net position:
Net investment in capital assets51,857,818 1,374,113 1,989,780 6,354,919 2,795,895 1,753,862 66,126,387
Restricted for debt service- - 611,377 - - - 611,377
Unrestricted14,021,972 1,704,172 213,760 (1,362,075) (221,555) 2,511,185 16,867,459
Total net position65,879,790$ 3,078,285$ 2,814,917$ 4,992,844$ 2,574,340$ 4,265,047$ 83,605,223$
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, 2013
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Operating revenues:
Sales - liquor-$ 13,462,933$ -$ 147,581$ -$ -$ 13,610,514$
Sales - retail- 248,624 3,090 210,814 36,055 37,677 536,260
Sales - utilities17,165,523 - - - - - 17,165,523
Sales - concessions- - 114,868 188,850 231,813 171,210 706,741
Memberships- - 398,626 80,437 2,120 87,702 568,885
Admissions- - 365,272 50,985 103,289 755,241 1,274,787
Building rental- - 46,199 63,982 1,462,079 335,197 1,907,457
Rental of equipment- - - 303,748 2,368 156,966 463,082
Greens fees- - - 1,386,194 - 182,125 1,568,319
Other fees664,902 - - 279,152 105,247 899,515 1,948,816
Total operating revenues 17,830,425 13,711,557 928,055 2,711,743 1,942,971 2,625,633 39,750,384
Operating expenses:
Cost of sales and services- 9,964,763 42,376 286,581 83,530 102,925 10,480,175
Personal services1,594,233 1,384,831 319,089 1,479,179 741,639 1,615,229 7,134,200
Contractual services6,614,352 538,765 149,732 532,947 688,457 586,620 9,110,873
Commodities880,880 73,598 49,211 343,421 118,877 282,997 1,748,984
Central Services655,093 223,334 19,904 147,845 44,130 155,656 1,245,962
Depreciation3,148,601 79,122 233,946 390,743 446,588 223,688 4,522,688
Total operating expenses 12,893,159 12,264,413 814,258 3,180,716 2,123,221 2,967,115 34,242,882
Operating income (loss)4,937,266 1,447,144 113,797 (468,973) (180,250) (341,482) 5,507,502
Nonoperating revenues (expenses):
Intergovernmental489,387 - - - - - 489,387
Investment income(4) 16,080 7,596 4,585 21 (106,126) (77,848)
Donations- - 765 - 17,984 8,106 26,855
Interest and fiscal charges(980,241) - (9,214) (19,246) (149,273) - (1,157,974)
Amortization of bond premiums
(discounts)125,214 - 540 147 (16) - 125,885
Gain (loss) on sale of capital
asset, net of recoveries- 1,787 - 15,800 - - 17,587
Miscellaneous 800 3,000 - - - - 3,800
Total nonoperating
revenues (expenses)(364,844) 20,867 (313) 1,286 (131,284) (98,020) (572,308)
Income (loss) before transfers4,572,422 1,468,011 113,484 (467,687) (311,534) (439,502) 4,935,194
Transfers:
Transfers in- - - 468,681 557,345 280,167 1,306,193
Transfers out(100,000) (1,340,100) - - - - (1,440,100)
Total transfers (100,000) (1,340,100) - 468,681 557,345 280,167 (133,907)
Change in net position4,472,422 127,911 113,484 994 245,811 (159,335) 4,801,287
Net position - January 1
as previously reported61,568,761 2,950,374 2,705,647 4,991,850 2,392,648 4,424,382 79,033,662
Change in accounting principle (161,393) - (4,214) - (64,119) - (229,726)
Net position - January 1 as restated61,407,368 2,950,374 2,701,433 4,991,850 2,328,529 4,424,382 78,803,936
Net position - December 3165,879,790$ 3,078,285$ 2,814,917$ 4,992,844$ 2,574,340$ 4,265,047$ 83,605,223$
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, 2013
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Cash flows from operating activities:
Receipts from customers and users17,828,536$ 13,713,175$ 928,055$ 2,736,913$ 1,895,673$ 2,625,375$ 39,727,727$
Payment to suppliers(8,024,087) (10,817,511) (260,976) (1,291,840) (1,191,670) (1,107,280) (22,693,364)
Payment to employees(1,554,389) (1,351,642) (319,512) (1,440,787) (733,210) (1,595,001) (6,994,541)
Donations received- - 765 - 17,984 8,106 26,855
Miscellaneous received800 3,000 - - - - 3,800
Net cash provided by
(used in) operating activities8,250,860 1,547,022 348,332 4,286 (11,223) (68,800) 10,070,477
Cash flows from noncapital financing activities:
State grant489,387 - - - - - 489,387
Transfer from other funds- - - 468,681 557,345 280,167 1,306,193
Transfer to other funds(100,000) (1,340,100) - - - - (1,440,100)
Proceeds from interfund borrowing- 1,308,584 171,184 1,135,419 157,403 50,214 2,822,804
Payment of interfund borrowing(442,991) (491,452) (293,968) - (1,594,157) - (2,822,568)
Net cash provided by (used in)
noncapital financing activities(53,604) (522,968) (122,784) 1,604,100 (879,409) 330,381 355,716
Cash flows from capital and related financing activities:
Proceeds from capital debt- - - 1,138,472 - - 1,138,472
Acquisition of capital assets(6,670,868) (41,313) (80,242) (2,980,243) (1,201,016) (206,498) (11,180,180)
Proceeds from disposals
of capital assets- 1,787 - 1,322,694 - - 1,324,481
Principal paid on bonds(3,400,000) - (140,000) (310,000) (100,000) - (3,950,000)
Interest and fiscal charges paid on bonds(933,969) - (10,600) (22,315) (124,427) - (1,091,311)
Net cash provided by (used in)
capital and related
financing activities(11,004,837) (39,526) (230,842) (851,392) (1,425,443) (206,498) (13,758,538)
Cash flows from investing activities:
Interest received21,289 11,206 5,294 3,212 21 (102,796) (61,774)
Net increase (decrease)
in cash and investments(2,786,292) 995,734 - 760,206 (2,316,054) (47,713) (3,394,119)
Cash and investments -
January 112,681,750 - - - 2,316,054 2,898,793 17,896,597
Cash and investments -
December 319,895,458$ 995,734$ -$ 760,206$ -$ 2,851,080$ 14,502,478$
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, 2013
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) 4,937,266$ 1,447,144$ 113,797$ (468,973)$ (180,250)$ (341,482)$ 5,507,502$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation3,148,601 79,122 233,946 390,743 446,588 223,688 4,522,688
Donations- - 765 - 17,984 8,106 26,855
Miscellaneous revenue (expense)800 3,000 - - - - 3,800
Changes in assets and liabilities:
Decrease (increase) in receivables(221,862) - - (9,073) (47,298) (268) (278,501)
Decrease (increase) in
special assessments220,786 - - - - - 220,786
Decrease (increase) in
due from other governments(813) - - - - - (813)
Decrease (increase) in inventory(6,017) (103,036) - (15,164) - 72 (124,145)
Decrease (increase) in
prepaid expenses(11,963) - - - - - (11,963)
Increase (decrease) in
accounts payable141,856 85,599 201 32,439 (259,648) 20,181 20,628
Increase (decrease) in
salaries payable11,702 7,368 (423) 10,509 5,457 13,249 47,862
Increase (decrease) in
due to other governments2,362 386 46 1,679 2,972 665 8,110
Increase (decrease) in
unearned revenue- 1,618 - 34,243 - 10 35,871
Increase (decrease) in
net OPEB obligation4,462 3,324 - 4,448 2,647 2,413 17,294
Increase (decrease) in
compensated absences23,680 22,497 - 23,435 325 4,566 74,503
Total adjustments3,313,594 99,878 234,535 473,259 169,027 272,682 4,562,975
Net cash provided by
(used in) operating activities8,250,860$ 1,547,022$ 348,332$ 4,286$ (11,223)$ (68,800)$ 10,070,477$
Noncash investing activities:
Increase (decrease) in
fair value of investments(50,488) (4,266) (2,015) (1,201) - (128,162) (186,132)
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable873,583 13,233 - (523,264) 884,701 (60,496) 1,187,757
Increase (decrease) in accounts receivable
related to insurance recoveries- - - (1,306,893) - - (1,306,893)
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, 2013
Agency Funds
Assets
Cash and investments 386,562$
Liabilities
Accounts payable 34,049$
Salaries payable 10,161
Due to other governmental units 342,352
Total liabilities 386,562$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
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, 2013
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, 2013
37
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, 2013
38
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the utilities, liquor, aquatic center, golf course, arena,
art center, edinborough park, centennial lake, and sports dome 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
Cash and Investments
The cash balances of the City and its component units fund are pooled and invested for
the purpose of increasing earnings through investment activities. The pool’s investments
are reported at fair value at year end, except for investments in 2a7-like external
investment pools, which are stated at amortized cost. The City has the ability and intent
to hold its investments to maturity. The individual funds’ portions of the pool’s fair value
are presented as “Cash and investments.” Earnings from such investments are allocated
to the respective funds on the basis of applicable cash balance participation by each
fund. The City provides temporary advances to funds that have insufficient cash and
investment 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.
Restricted Cash and Investments
Restricted cash and investments represent bond proceeds held for specific purposes.
Earnings on these investments are allocated directly to these funds.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
39
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,
2013 are planned to be eliminated in 2014. Interfund receivables and payables at
December 31, 2013 that are not expected to be eliminated in 2014 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 inflows of resources because they
are not available to finance current expenditures.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
40
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 inflows of resources. The
following is a breakdown of special assessments receivable at December 31,
2013:
Enterprise
Funds
Debt
ServiceConstructionUtilities
Special assessments receivable
Delinquent$47,402$0$27,932
Deferred14,575,472655,487280,968
Total$14,622,874$655,487$308,900
Governmental Funds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
41
G. INVENTORIES AND PREPAID ITEMS
Inventories of the proprietary funds are stated at cost and are recorded as expenses
when consumed rather than when purchased. All inventories use the first-in/first-out
(FIFO) method.
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.
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, 2013
42
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 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.
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. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of net position that applies to a
future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government has no items that qualify for reporting
in this category.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time. The government has only one type of item, which arises only
under a modified accrual basis of accounting and qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from two sources:
property taxes and special assessments not collected within 60 days of year-end. These
amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
43
L. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or
expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another fund,
are recorded as expenditures/expenses in the reimbursing fund and as reductions of
expenditures/expenses in the fund that is reimbursed. Interfund loans are reported as an
interfund loan receivable or payable which offsets the movement of cash between funds.
All other interfund transactions are reported as transfers.
M. 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:
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
44
N. NET POSITION
In the government-wide financial statements, net position represents the difference
between assets, liabilities, and deferred inflows of resources. 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.”
O. 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.
P. CHANGE IN ACCOUNTING PRINCIPLE
During the year ended December 31, 2013, the City has implemented GASB Statement
No 65, Items Previously Reported as Assets and Liabilities. GASB Statement No. 65
identified specific items previously reported as assets that will now be classified as either
deferred outflows of resources or outflows (expenditures/expenses), and items previously
reported as liabilities that will now be reported as either deferred inflows of resources or
inflows (revenues). The standard requires retroactive implementation, which resulted in
the restatement of net position as of December 31, 2012 due to the write-off of bond
issuance costs, which had been recorded as deferred charges and amortized in the past.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
45
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 payable(55,452,345)$
Plus: issuance premium(1,442,363)
Less: issuance discount281,240
Accrued interest payable(747,302)
OPEB obligation(1,333,029)
Compensated absences(3,898,653)
Net adjustment to reduce fund balance - total
governmental funds to arrive at net position -
governmental activities(62,592,452)$
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 outlay9,388,626$
Depreciation expense(7,456,252)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental funds1,932,374$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
46
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 premiums, discounts and similar items
when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities.” The details of this difference are as follows:
Debt issued or incurred:
Issuance of general obligation bonds(5,710,000)$
Issuance of permanent improvement revolving bonds(2,555,000)
Less discounts60,335
Plus premiums(275,361)
Principal repayments:
Tax increment debt550,000
General obligation debt2,000,000
Permanent improvement revolving debt5,745,000
Public project revenue debt6,225,000
Edina emerald energy program revenue bonds11,375
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities6,051,349$
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(208,916)$
Compensated absences103,196
Accrued interest113,922
Amortization of bond discounts and premiums131,588
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities139,790$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
47
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits2,636,618$
Cash on hand19,660
Investments59,410,840
62,067,118$
Cash and investments are presented in the financial statements as follows:
Cash and investments - Statement of Net Position58,273,619$
Restricted cash and investments - Statement of Net Position3,406,937
Cash and investments - Statement of Fiduciary Net Position386,562
62,067,118$
The City had restricted investments of $3,406,937 as of December 31, 2013 that
represent unspent bond proceeds to be used for construction projects and debt
payments.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
48
At year-end, the carrying amount of the City’s deposits was $2,636,618 while the
balance on the bank records was $2,607,777. At December 31, 2013, all
deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 6 to 10 > 10 Total
U.S. TreasuriesN/RN/A-$ 336,379$ 528,525$ 483,181$ 1,348,085$
GNMAN/RN/A- - - 108,998 108,998
SBA NotesAA+/AaaS&P/Mdy's64,814 49,007 265,055 12,969 391,845
U.S. AgenciesAA+/AaaS&P/Mdy's7,186,503 3,539,552 6,371,043 2,435,570 19,532,668
Bankers AcceptanceA1/Aa3S&P/Mdy's8,636,153 - - - 8,636,153
MunicipalsAAA/AaaS&P/Mdy's510,128 192,257 - - 702,385
MunicipalsAAA/Aa1S&P/Mdy's373,271 - - - 373,271
MunicipalsAA/Aa3S&P/Mdy's50,126 - - - 50,126
MunicipalsAA/Aa2S&P/Mdy's503,160 511,025 - - 1,014,185
MunicipalsAA/Aa1S&P/Mdy's15,016 560,175 - - 575,191
MunicipalsAA+/AaaS&P/Mdy's1,998,924 - - - 1,998,924
MunicipalsAA+/Aa2S&P/Mdy's- 116,796 - - 116,796
MunicipalsAA+/Aa1S&P/Mdy's504,745 74,040 - 1,645,000 2,223,785
MunicipalsAa2Mdy's680,830 - - - 680,830
MunicipalsAa3Mdy's211,103 - - - 211,103
MunicipalsAAS&P- 42,197 - - 42,197
Negotiable CD'sN/RN/A11,509,058 1,710,068 - 245,004 13,464,130
32,243,831$ 7,131,496$ 7,164,623$ 4,930,722$ 51,470,672
Money Market*AAAS&P4,518,498
4M Fund*N/RN/A3,421,670
Total investments 59,410,840$
N/A - Not Applicable
N/R - Not Rated
* - The City's money market investments do not 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
49
Investments are subject to various risks, the following of which are considered the most
significant:
Custodial credit risk – For investments, this is the risk that in the event of a
failure of the counterparty to an investment transaction (typically a broker-dealer)
the City would not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The City’s investment
policy specifically addresses custodial credit risk, requiring the City to limit its
exposure by purchasing insured or registered investments, or by the control of
who holds the securities.
Credit risk – This is the risk that an issuer or other counterparty to an investment
will not fulfill its obligations. Minnesota Statutes limit the City’s investments to
direct obligations or obligations guaranteed by the United States or its agencies;
shares of investment companies registered under the Federal Investment
Company Act of 1940 that receive the highest credit rating, are rated in one of
the two highest rating categories by a statistical rating agency, and all of the
investments have a final maturity of thirteen months or less; general obligations
rated “AA” or better; general obligations of the Minnesota Housing Finance
Agency rated “A” or better; bankers’ acceptances of United States banks eligible
for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest
quality category by at least two nationally recognized rating agencies, and
maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a
United States commercial bank, domestic branch of a foreign bank, or a United
States insurance company, and with a credit quality in one of the top two highest
categories; repurchase or reverse repurchase agreements and securities lending
agreements with financial institutions qualified as a “depository” by the
government entity, with banks that are members of the Federal Reserve System
with capitalization exceeding $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 11.5% in securities issued by FNMA, 10.9% in securities issued by
FHLB, 9.9% in securities issued by FHLMC and 14.5% in Bankers Acceptances
with U.S. Bank.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
50
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 is as follows:
BeginningEnding
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land15,981,364$ 2,655,757$ -$ 18,637,121$
Easements111,000 - - 111,000
Construction in progress5,670,607 5,857,357 (4,780,366) 6,747,598
Total capital assets not being depreciated21,762,971 8,513,114 (4,780,366) 25,495,719
Capital assets being depreciated:
Land improvements22,719,252 199,530 - 22,918,782
Buildings and structures63,690,536 109,328 - 63,799,864
Furniture and office equipment3,641,272 203,563 - 3,844,835
Vehicles and equipment14,942,808 820,125 (466,026) 15,296,907
Infrastructure90,951,630 4,060,674 (831,861) 94,180,443
Parks15,630,395 262,658 (10,000) 15,883,053
Total capital assets being depreciated211,575,893 5,655,878 (1,307,887) 215,923,884
Less accumulated depreciation for:
Land improvements(14,648,314) (703,286) - (15,351,600)
Buildings and structures(14,724,508) (1,828,162) - (16,552,670)
Furniture and office equipment(2,211,418) (318,174) - (2,529,592)
Vehicles and equipment(9,268,398) (1,276,942) 421,038 (10,124,302)
Infrastructure(48,754,075) (2,718,569) 831,861 (50,640,783)
Parks(7,809,585) (611,119) 10,000 (8,410,704)
Total accumulated depreciation(97,416,298) (7,456,252) 1,262,899 (103,609,651)
Total capital assets being depreciated, net114,159,595 (1,800,374) (44,988) 112,314,233
Governmental activities capital assets, net135,922,566$ 6,712,740$ (4,825,354)$ 137,809,952$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
51
BeginningEnding
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress19,927,135 9,563,093 (14,990,998) 14,499,230
Total capital assets not being depreciated21,016,100 9,563,093 (14,990,998) 15,588,195
Capital assets being depreciated:
Land improvements & golf course9,764,376 73,943 - 9,838,319
Buildings and structures18,855,830 4,382,173 - 23,238,003
Furniture and office equipment153,303 - - 153,303
Vehicles and equipment6,722,825 387,597 (89,793) 7,020,629
Utility infrastructure96,091,103 10,576,615 - 106,667,718
Lease property capital lease430,614 - - 430,614
Total capital assets being depreciated132,018,051 15,420,328 (89,793) 147,348,586
Less accumulated depreciation for:
Land improvements & golf course(5,594,633) (348,279) - (5,942,912)
Buildings and structures(11,490,363) (738,121) - (12,228,484)
Furniture and office equipment(131,620) (4,973) - (136,593)
Vehicles and equipment(3,958,097) (511,725) 89,793 (4,380,029)
Utility infrastructure(34,383,982) (2,919,590) - (37,303,572)
Lease property capital lease(430,614) - - (430,614)
Total accumulated depreciation(55,989,309) (4,522,688) 89,793 (60,422,204)
Total capital assets being depreciated, net76,028,742 10,897,640 - 86,926,382
Business-type activities capital assets, net97,044,842$ 20,460,733$ (14,990,998)$ 102,514,577$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
52
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government555,936$
Public safety1,065,535
Public works3,980,482
Parks1,854,299
Total depreciation expense - governmental activities7,456,252$
Business-type activities:
Utilities3,148,601$
Liquor79,122
Aquatic Center233,946
Golf Course390,743
Arena446,588
Art Center26,227
Edinborough Park161,113
Centennial Lakes36,348
Total depreciation expense - business-type activities4,522,688$
CONSTRUCTION COMMITMENTS
At December 31, 2013, the City had construction project contracts in progress. The commitments
related to the remaining contract balances are summarized as follows:
ContractRemaining
Project #Project DescriptionAmountCommitment
12-6A EngWoodale Bike Lane Re-Striping32,874$ 5,702$
13-1 EngMendelssohn Lane1,233,546 67,279
13-10NB EngLake Edina Landscape14,930 6,702
13-2 EngNormandale Road1,738,562 173,865
13-3 EngBraemar Hills Neighborhood944,807 54,088
VariousCountryside Park Playground and Path842,789 84,541
NAArden Park Irrigation15,320 5,362
VariousGolf Dome605,802 23,405
VariousSports Dome627,000 551,760
13-9 EngRaw Water Line on Vernon188,558 4,319
12-1 PWWater Meter Replacement3,618,864 540,596
1,517,619$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
53
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. 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, $1,306,893 in 2013 and recorded the remaining $610,392 as a
receivable at year end. The final receivable amount was paid to the City on February 8, 2014. 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 in 2012.
On August 6, 2013 a hail storm caused significant damage to various facilities resulting in a large
insurance claim. The City’s insurance carrier paid the City $940,361 on January 16, 2014, which
was recorded as a receivable at year end. $123,707 of the proceeds were distributed to the
South Metro Public Safety Training Facility Association (PSTF); which the City has a joint venture
agreement with, to cover damage to the facility. The remaining $816,654 in proceeds was
recorded as insurance recovery revenue, and was used to fund the newly created non-major
capital projects Environmental Efficiency Fund. The insurance proceeds will be used to fund
energy efficiency projects, and going forward this fund will account for funds received through
energy cost savings to be reinvested in future energy efficiencies.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
54
Note 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2013: 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 is payable from general
property taxes. The second type is payable solely from special assessments with any deficiency
to be provided for by general property taxes. The third 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 fourth type is payable solely from
special assessments. The fifth type is payable primarily from enterprise revenue with any
deficiency to be provided for by general property taxes. The reporting entity’s long-term debt is
segregated between the amounts to be repaid from governmental activities and amounts to be
repaid from business-type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2013, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/2013
General Obligation Bonds:
General Obligation - Park & Recreation Refunding, 2005A3.50-4.00%7/19/20052/1/20175,375,000 2,210,000
General Obligation - Capital Improvement Plan, 2007A4.00-4.25%5/24/20072/1/20285,865,000 4,805,000
General Obligation - Capital Improvement Plan, 2009A3.00-4.40%4/29/20092/1/203014,000,000 12,425,000
General Obligation - Capital Improvement Plan, 2010A2.00-4.00%11/18/20102/1/20218,285,000 6,240,000
General Obligation - Capital Improvement Plan, 2013A - Refunding3.00-3.50%10/10/20132/1/20305,710,000 5,710,000
Total General Obligation Bonds 39,235,000 31,390,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2008B3.00-4.00%8/28/20082/1/20207,755,000 5,725,000
Permanent Improvement Revolving, 2010B2.00-3.00%11/18/20102/1/20222,305,000 2,095,000
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
Permanent Improvement Revolving, 2013A3.00-3.50%10/10/20132/1/20302,555,000 2,555,000
Total PIR Bonds 20,600,000 18,360,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.50-4.13%9/13/20055/1/20265,425,000 3,995,000
Public Project Revenue, Series 2009A2.10-4.55%11/24/20092/1/20302,595,000 1,645,000
Total Public Project Revenue Bonds 8,020,000 5,640,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A7.00%2/25/20121/1/202333,690 30,321
Edina Emerald Energy Program Bonds, 2012B5.50%8/28/20121/1/201840,030 32,024
Total EEEP Bonds 73,720 62,345
Total bonded indebtedness - governmental activities67,928,720$ 55,452,345$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
55
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/2013
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00-3.00%4/29/20091/1/20172,010,000$ 320,000$
Recreational Facility Bonds, Series 2009C2.00-4.00%12/10/20092/1/20302,440,000 2,160,000
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
Recreational Facility Bonds, Series 2013B3.00-3.45%10/10/20132/1/20291,125,000 1,125,000
Utility Revenue Bonds, Series 2007B4.00%5/24/20072/1/20178,210,000 3,635,000
Utility Revenue Bonds, Series 2008A3.00-4.25%8/28/20082/1/201913,985,000 8,640,000
Utility Revenue Bonds, Series 2011A2.00-3.00%10/27/20112/1/202211,230,000 10,265,000
Utility Revenue Bonds, Series 2012A3.00-4.00%11/15/20122/1/20236,100,000 6,100,000
Total Revenue Bonds 48,015,000 35,160,000
Total bonded indebtedness - business-type activities48,015,000$ 35,160,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
20142,295,000$ 1,090,686$ 1,555,000$ 548,927$ 235,000$ 223,754$
20152,350,000 1,039,543 1,760,000 512,169 245,000 214,154
20162,425,000 952,593 1,960,000 452,944 255,000 204,154
20172,495,000 862,993 2,035,000 388,772 265,000 193,754
20181,990,000 782,343 2,060,000 320,538 405,000 180,648
2019-20239,205,000 2,829,487 6,440,000 777,126 2,270,000 647,965
2024-20287,905,000 1,353,516 1,925,000 247,400 1,965,000 164,695
2029-20332,725,000 112,974 625,000 17,313 - -
Total31,390,000$ 9,024,135$ 18,360,000$ 3,265,189$ 5,640,000$ 1,829,124$
Principal Interest Principal Interest
2014-$ 1,942$ 3,960,000$ 1,060,272$
201511,375 3,546 4,195,000 936,658
201611,375 2,870 4,350,000 795,745
201711,375 2,193 4,500,000 647,351
201811,375 1,517 3,565,000 514,233
2019-202316,845 2,948 11,415,000 1,209,991
2024-2028- - 1,900,000 353,946
2029-2033- - 1,275,000 78,414
Total62,345$ 15,016$ 35,160,000$ 5,596,610$
Bonds
Business-type Activities
Revenue
Year Ending
December 31
Year Ending
December 31
Governmental Activities
Edina Emerald Energy Program
Revenue Bonds
Governmental Activities
GeneralPublic Improvement
Obligation Bonds Revolving Bonds
Public Project
Revenue Bonds
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
56
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2013, was as follows:
BeginningEndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
Tax increment550,000$ -$ (550,000)$ -$ -$
General obligation27,680,000 5,710,000 (2,000,000) 31,390,000 2,295,000
PIR 21,550,000 2,555,000 (5,745,000) 18,360,000 1,555,000
Public project revenue11,865,000 - (6,225,000) 5,640,000 235,000
EEEP revenue73,720 - (11,375) 62,345 -
Less deferred amounts:
Discount on bonds(250,076) (60,335) 29,171 (281,240) -
Premiums1,327,761 275,361 (160,759) 1,442,363 -
Total bonds payable62,796,405 8,480,026 (14,662,963) 56,613,468 4,085,000
Compensated absences4,001,849 1,859,841 (1,963,037) 3,898,653 1,559,461
Governmental activity
Long-term liabilities66,798,254$ 10,339,867$ (16,626,000)$ 60,512,121$ 5,644,461$
Business-type activities:
Bonds payable:
Revenue bonds37,985,000$ 1,125,000$ (3,950,000)$ 35,160,000$ 3,960,000$
Less deferred amounts:
Discount on bonds(60,668) (14,513) 5,087 (70,094) -
Premiums1,187,976 27,985 (130,972) 1,084,989 -
Total bonds payable39,112,308 1,138,472 (4,075,885) 36,174,895 3,960,000
Compensated absences833,395 821,486 (746,983) 907,898 363,159
Business-type activity
Long-term liabilities39,945,703$ 1,959,958$ (4,822,868)$ 37,082,793$ 4,323,159$
For governmental activities, compensated absences and other postemployment benefit
obligations are generally liquidated by the general fund.
In 2012, 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 were 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, 2013
57
The City issued $8,265,000 of General Obligation bonds, Series 2013A to finance a current
refunding of the 2014 through 2030 maturities of the City’s $6,125,000 General obligation
bonds, Series 2009B and to finance various street infrastructure improvement projects.
Savings from the current proceeds were not placed in escrow and the General obligation
bonds, Series 2009B were redeemed October 31, 2013. The current refunding was
undertaken to reduce total debt service payments by $351,199 and resulted in an economic
gain of $254,693. The City anticipates that special assessments to benefited properties will
be sufficient to pay future debt service on this issue.
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of TotalRemainingPrincipalPledged
DebtTerm ofPrincipaland InterestRevenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009B Recreational Facility BondsGolf course improvementsGolf100%2009-2013-$ 313,100$ 2,711,743$
2009B Recreational Facility BondsPool improvementPool100%2009-2017339,300 150,600 928,055
2009C Recreational Facility BondsArena improvementsArena100%2010-20302,943,400 180,600 1,942,971
2012B Recreational Facility BondsArena improvementsArena100%2013-2020847,956 5,573 1,942,971
2012C Recreational Facility BondsArena improvementsArena100%2013-20332,840,884 38,253 1,942,971
2013B Recreational Facility BondsGolf dome improvementsGolf100%2014-20291,443,686 - 2,711,743
2003C Utility Revenue BondsUtility infrastructureUtility100%2003-2013- 376,568 17,830,425
2007B Utility Revenue BondsUtility infrastructureUtility100%2007-20173,933,100 981,800 17,830,425
2008A Utility Revenue BondsUtility infrastructureUtility100%2008-20199,732,431 1,604,969 17,830,425
2011A Utility Revenue BondsUtility infrastructureUtility100%2012-202211,493,775 1,216,500 17,830,425
2012A Utility Revenue BondsUtility infrastructureUtility100%2013-20237,182,075 154,133 17,830,425
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 2013 is
computed as follows:
December 31, 2013
Market Value (after fiscal disparities)8,798,600,609$
Debt Limit (3% of Market Value)263,958,018$
Amount of debt applicable to debt limit:
Total bonded debt90,612,345$
Less:
Public improvement revolving bonds(18,360,000)
Revenue bonds(35,160,000)
EEEP revenue bonds(62,345)
Total debt applicable to debt limit37,030,000$
Legal debt margin226,928,018$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
58
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 five 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, 2013
59
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 2013. PEPFF members were
required to contribute 9.6% of their covered salary in 2013. 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, 2013, 2012, and 2011 were $1,097,869, $1,044,217, and $1,000,753,
respectively. The City’s contributions to the Public Employees Police and Fire Fund for
the years ending December 31, 2013, 2012, and 2011 were $1,046,021, $1,020,720, and
$1,024,566, 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, 2013
60
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 contribution311,061$
Interest on net OPEB obligation56,779
Adjustment to annual required contribution(48,696)
Annual OPEB cost (expense)319,144
Contributions made(92,934)
Increase in net OPEB obligation226,210
Net OPEB obligation - beginning of year1,261,765
Net OPEB obligation - end of year1,487,975$
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, 2011321,790$ 110,471$ 34.3%1,027,345$
December 31, 2012308,120 73,700 23.9%1,261,765
December 31, 2013319,144 92,934 29.1%1,487,975
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
61
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, 2013
62
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, 2013, is as follows:
Payable FundAmount
LiquorArena157,403$
Golf Course317,103
Sports Dome16,946
UtilityGolf Course271,807
Aquatic Center171,184
Total 934,443$
Receivable Fund
The composition of advances to other funds and advances from other funds account balances as
of December 31, 2013, is as follows:
Payable FundAmount
Aquatic CenterGolf Course1,000,000$
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, 2013
63
DebtNonmajor
General Service Construction Golf Course Arena Enterprise Total
Transfer out:
General Fund-$ -$ 1,792,872$ 300,000$ 300,000$ -$ 2,392,872$
HRA Fund- 559,350 105,642 - - - 664,992
Construction Fund- - - 68,681 97,345 115,167 281,193
Utilities Fund- - 100,000 - - - 100,000
Liquor Fund765,100 - 150,000 100,000 160,000 165,000 1,340,100
765,100$ 559,350$ 2,148,514$ 468,681$ 557,345$ 280,167$ 4,779,157$
Transfer In:
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit
from services provided by another fund. Some of the City’s interfund transfers fall under that
category. Non-routine transfers include the following:
1. The liquor fund transferred $765,100, $100,000, $160,000 and $165,000 to the general
fund, golf course fund, arena, and art center funds, respectively, to subsidize operations.
2. The construction fund transferred $68,681, $97,345, $66,803 and $48,364 to the golf
course, arena, edinborough park, and centennial lakes funds, respectively, to subsidize
capital improvements to those facilities.
3. The HRA fund transferred $559,350 of tax increment revenues to the debt service fund to
pay principal and interest on outstanding tax increment debt.
4. The HRA fund transferred $105,642 to the construction fund to cover the cost of HRA
projects paid for by the construction fund.
5. 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 2013
budget.
6. The general fund transferred $1,697,872 of the 2012 unassigned fund balance to the
construction, golf course and arena funds; $1,097,872 to fund various projects and
equipment replacement within the construction fund, $300,000 to fund unplanned
expenses at the arena, and $300,000 to the golf course to start stabilizing the fund deficit.
7. The general fund transferred $695,000 to the construction fund for use of park reserves
from the parkland dedication money received in 2012.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
64
Note 10 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1202 (Grandview Commercial Area) is a redevelopment district established in
1984 pursuant to Minnesota Statutes with a termination date of 2010. Although the main district is
decertified, the City continued to receive increments from a sub-district until the outstanding debt
was retired in 2012. Increment previously collected is available for expenditures within the
district.
District number 1203 (Southeast Edina Redevelopment District – Centennial Lakes) is a
redevelopment district established in 1988 pursuant to Minnesota Statutes with a termination date
of 2016.
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
The following table reflects values as of December 31, 2013:
TIF #1202TIF #1203TIF #1208Total
Original tax capacity22,872$ 229,691$ 8,458,727$ 8,711,290$
Current tax capacity787,409 3,581,728 9,615,790 13,984,927
Fiscal Disparities- - 348,272 348,272
Tax capacity change764,537 3,352,037 808,791 4,925,365
Captured tax capacity value:
Retained captured tax capacity764,537$ 3,352,037$ 808,791$ 4,925,365$
Total bonds issued
(general obligation)9,637,555$ 35,894,724$ -$ 45,532,279$
Amounts redeemed9,637,555 35,894,724 - 45,532,279
Outstanding bonds at
December 31, 2013-$ -$ -$ -$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
65
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 $579,693 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 annual maximum
coverage of $139,188,285.
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 2013.
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, 2013.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
66
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, 2013, the City of Edina had 4 series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $30,235,000. 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, 2013,
the City paid a total of $47,072 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, 2013,
the City paid a total of $13,513 in membership fees to the I-494 Corridor Commission.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
67
Note 15 FUND BALANCES
A. Classifications
At December 31, 2013, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund Debt Service Construction
Nonmajor
Funds Total
Nonspendable
Prepaid items13,322$ -$ -$ -$ -$ 13,322$
Restricted
Park dedication185,395 - - - - 185,395
Tax increments- 11,495,641 - - - 11,495,641
Debt service- - 6,246,769 - - 6,246,769
Unspent bond proceeds- - - 2,502,293 - 2,502,293
Pedestrian and cyclist improvements- - - - 492,362 492,362
Energy efficiency projects- - - - 816,654 816,654
Forfeitures- - - - 631,763 631,763
Grant funds- - - - 85,580 85,580
Donations- - - - 335,170 335,170
Total Restricted185,395 11,495,641 6,246,769 2,502,293 2,361,529 22,791,627
Assigned
Compensated absences1,559,461 - - - - 1,559,461
Construction commitments- - - 397,539 - 397,539
Special projects- - - 384,027 - 384,027
Equipment- - - 2,862,844 - 2,862,844
Construction - - - 4,709,858 - 4,709,858
Total Assigned1,559,461 - - 8,354,268 - 9,913,729
Unassigned12,573,457 - - - - 12,573,457
Total Fund Balance14,331,635$ 11,495,641$ 6,246,769$ 10,856,561$ 2,361,529$ 45,292,135$
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 $12,573,457 of unassigned fund balance in the general
fund, or 56.2% of 2014 budgeted property tax revenue. This amount is $2,049,968 above the
goal range identified in the policy.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
68
Note 16 GASB STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 68 replaces the requirements of Statement No. 27, “Accounting for
Pensions by State and Local Governmental Employers” and Statement No. 50, “Pension
Disclosures,” as they relate to governments that provide pensions through pension plans
administered as trusts or similar arrangements that meet certain criteria. Statement No. 68
requires governments providing defined benefit pensions to recognize their long-term obligation
for pension benefits as a liability for the first time, and to more comprehensively and comparably
measure the annual costs of pension benefits.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
2013
ActualVariance with
OriginalFinalAmountsFinal Budget
Revenues:
General property taxes:
Current21,864,994$ 21,699,894$ 22,002,497$ 302,603$
Penalties and interest12,000 12,000 4,030 (7,970)
Total general property taxes21,876,994 21,711,894 22,006,527 294,633
Franchise taxes:714,000 730,000 794,261 64,261
Licenses and permits:2,577,500 2,866,814 4,122,305 1,255,491
Intergovernmental:
Federal:36,000 36,000 61,112 25,112
State:
Municipal state aid195,000 195,000 195,000 -
Other60,000 60,000 133,288 73,288
State aid - police 350,000 350,000 347,445 (2,555)
State aid - fire- - 378,603 378,603
Health programs119,000 119,000 118,977 (23)
Total intergovernmental760,000 760,000 1,234,425 474,425
Charges for services:
City Clerk6,500 6,500 11,593 5,093
Planning Department25,000 25,000 109,507 84,507
Housing Foundation Contract28,000 28,000 26,766 (1,234)
HRA Services22,000 22,000 25,775 3,775
Police Department270,000 270,000 321,030 51,030
Fire Department20,000 20,000 25,792 5,792
Ambulance fees1,720,000 1,779,000 1,839,569 60,569
Health Department7,700 7,700 22,470 14,770
Building Department25,000 25,000 19,540 (5,460)
Engineering180,000 180,000 196,387 16,387
Park Registration105,000 105,000 139,828 34,828
Senior Center98,000 98,000 69,947 (28,053)
Communications74,000 74,000 106,235 32,235
Other fees4,000 4,000 16,854 12,854
50th & France Assessment69,000 69,000 69,000 -
Charges to other funds484,044 564,048 564,048 -
Total charges for services3,138,244 3,277,248 3,564,341 287,093
Fines and forfeits1,034,000 1,034,000 1,017,219 (16,781)
Miscellaneous:
Investment income161,000 161,000 53,583 (107,417)
Rental of property395,000 476,000 518,862 42,862
Donations12,000 12,000 934 (11,066)
Other6,000 6,000 4,605 (1,395)
Total miscellaneous574,000 655,000 577,984 (77,016)
Total revenues30,674,738 31,034,956 33,317,062 2,282,106
Budgeted Amounts
69
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2013
2013
ActualVariance with
OriginalFinalAmountsFinal Budget
Expenditures:
Current:
General government:
Mayor and Council:
Personal services49,540$ 49,540$ 45,820$ 3,720$
Contractual services13,700 13,700 16,501 (2,801)
Commodities1,500 1,500 4,293 (2,793)
Central services27,660 27,804 27,192 612
Total mayor and council92,400 92,544 93,806 (1,262)
Administration:
Personal services878,078 1,087,403 1,020,803 66,600
Contractual services185,800 202,100 219,776 (17,676)
Commodities3,000 3,000 9,717 (6,717)
Central services72,252 73,020 74,391 (1,371)
Total administration1,139,130 1,365,523 1,324,687 40,836
Communications:
Personal services466,825 512,472 562,773 (50,301)
Contractual services236,950 236,950 325,455 (88,505)
Commodities48,500 48,500 38,633 9,867
Central services57,000 57,552 58,060 (508)
Total communications809,275 855,474 984,921 (129,447)
Planning:
Personal services401,880 414,842 464,594 (49,752)
Contractual services38,700 38,700 90,766 (52,066)
Commodities6,000 6,000 3,018 2,982
Central services44,916 45,384 46,059 (675)
Total planning491,496 504,926 604,437 (99,511)
Finance:
Personal services534,037 539,319 531,918 7,401
Contractual services105,850 105,850 104,308 1,542
Commodities3,500 3,500 1,863 1,637
Central services62,880 63,660 65,443 (1,783)
Total finance706,267 712,329 703,532 8,797
Election:
Personal services111,398 112,052 104,373 7,679
Contractual services17,575 17,575 16,133 1,442
Commodities14,500 14,500 10,094 4,406
Central services12,516 12,732 13,505 (773)
Total election155,989 156,859 144,105 12,754
Budgeted Amounts
70
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2013
2013
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Assessing:
Personal services701,984$ 699,228$ 680,933$ 18,295$
Contractual services113,441 113,441 89,008 24,433
Commodities2,900 2,900 1,264 1,636
Central services66,552 67,260 68,831 (1,571)
Total assessing884,877 882,829 840,036 42,793
Legal and court services:
Contractual services388,500 388,500 410,200 (21,700)
Commissions and projects:
Personal services200,000 200,000 366,932 (166,932)
Contractual services645,916 542,916 342,273 200,643
Commodities2,000 2,000 68,507 (66,507)
Total commissions and projects847,916 744,916 777,712 (32,796)
Total general government5,515,850 5,703,900 5,883,436 (179,536)
Public safety:
Police protection:
Personal services7,261,976 7,155,357 7,153,725 1,632
Contractual services417,584 417,584 370,920 46,664
Commodities80,558 80,558 55,003 25,555
Central services1,030,008 1,036,476 1,059,176 (22,700)
Total police protection8,790,126 8,689,975 8,638,824 51,151
Fire protection:
Personal services3,906,783 3,905,975 4,258,088 (352,113)
Contractual services366,120 366,120 379,561 (13,441)
Commodities176,400 176,400 277,052 (100,652)
Central services327,156 329,940 345,769 (15,829)
Total fire protection4,776,459 4,778,435 5,260,470 (482,035)
Animal Control:
Personal services74,551 74,745 74,123 622
Contractual services8,592 8,592 11,388 (2,796)
Commodities2,547 2,547 1,308 1,239
Central services9,096 9,180 9,627 (447)
Total animal control94,786 95,064 96,446 (1,382)
71
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2013
2013
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Public health:
Personal services293,942$ 292,760$ 234,938$ 57,822$
Contractual services203,027 203,027 162,270 40,757
Commodities2,325 2,325 2,322 3
Central services31,428 31,704 32,205 (501)
Total public health530,722 529,816 431,735 98,081
Inspections:
Personal services964,349 1,035,401 1,085,852 (50,451)
Contractual services107,600 114,600 107,285 7,315
Commodities9,410 9,410 18,563 (9,153)
Central services107,532 108,468 110,760 (2,292)
Total inspections1,188,891 1,267,879 1,322,460 (54,581)
Total public safety15,380,984 15,361,169 15,749,935 (388,766)
Public works:
Administration:
Personal services207,505 - 35,196 (35,196)
Contractual services6,800 6,800 4,804 1,996
Central services25,908 26,316 28,282 (1,966)
Total administration240,213 33,116 68,282 (35,166)
Engineering:
Personal services997,200 1,300,695 1,206,752 93,943
Contractual services74,250 74,250 104,774 (30,524)
Commodities18,400 18,400 18,438 (38)
Central services129,276 130,380 139,472 (9,092)
Total engineering1,219,126 1,523,725 1,469,436 54,289
Street maintenance:
Personal services2,428,373 2,471,074 2,396,154 74,920
Contractual services757,000 757,000 714,811 42,189
Commodities1,041,200 1,041,200 1,046,061 (4,861)
Central services925,752 927,360 996,242 (68,882)
Total street maintenance5,152,325 5,196,634 5,153,268 43,366
Total public works6,611,664 6,753,475 6,690,986 62,489
72
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2013
2013
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Parks:
Administration:
Personal services693,665$ 722,525$ 719,118$ 3,407$
Contractual services28,604 28,604 32,462 (3,858)
Commodities3,166 3,166 23,478 (20,312)
Central services85,284 86,388 89,197 (2,809)
Total administration810,719 840,683 864,255 (23,572)
Recreation:
Personal services194,760 194,946 183,081 11,865
Contractual services180,887 180,887 126,314 54,573
Commodities54,810 54,810 49,552 5,258
Total recreation430,457 430,643 358,947 71,696
Maintenance:
Personal services1,640,084 1,659,266 1,763,412 (104,146)
Contractual services529,171 529,171 386,462 142,709
Commodities211,813 211,813 168,234 43,579
Central services309,096 309,936 331,122 (21,186)
Total maintenance2,690,164 2,710,186 2,649,230 60,956
Total parks3,931,340 3,981,512 3,872,432 109,080
Total expenditures31,439,838 31,800,056 32,196,789 (396,733)
Revenues over (under) expenditures(765,100) (765,100) 1,120,273 1,885,373
Other financing sources (uses):
Transfer from other funds765,100 765,100 765,100 -
Transfer to other funds- (2,392,872) (2,392,872) -
Total financing sources (uses)765,100 (1,627,772) (1,627,772) -
Net increase (decrease) in fund balance-$ (2,392,872)$ (507,499) 1,885,373$
Fund balance - January 1 14,839,134
Fund balance - December 3114,331,635$
73
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2013
2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Tax increment collections3,990,000$ 3,990,000$ 3,981,938$ (8,062)$
Investment income169,000 169,000 (116,524) (285,524)
Total revenues4,159,000 4,159,000 3,865,414 (293,586)
Expenditures:
Personal services175,030 109,256 112,312 3,056
Contractual services711,000 711,000 1,077,559 366,559
Capital outlay3,000,000 200,000 2,711,056 2,511,056
Total expenditures3,886,030 1,020,256 3,900,927 2,880,671
Revenues over (under) expenditures272,970 3,138,744 (35,513) (3,174,257)
Other financing uses:
Transfers out(559,350) (3,559,350) (664,992) 2,894,358
Net increase (decrease) in fund balance(286,380)$ (420,606)$ (700,505) (279,899)$
Fund balance - January 112,196,146
Fund balance - December 3111,495,641$
Budgeted Amounts
74
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2013
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%
75
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2013
76
Note A LEGAL COMPLIANCE – BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the preceding
schedules:
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, Braemar memorial, and PACS 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, 2013
77
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
Mayor and council92,544$ 93,806$ 1,262$
Communications855,474 984,921 129,447
Planning504,926 604,437 99,511
Legal and court services388,500 410,200 21,700
Commissions and projects744,916 777,712 32,796
Public Safety
Fire protection4,778,435 5,260,470 482,035
Animal control95,064 96,446 1,382
Inspections1,267,879 1,322,460 54,581
Public Works
Administration33,116 68,282 35,166
Parks
Administration840,683 864,255 23,572
Excess expenditures in the General Fund mayor and council department are due to higher than
anticipated expenses related to conferences attended along with unbudgeted IPad purchases.
Excess expenditures in the communications department are due to the hiring of a new employee to
handle the Southwest Suburban Cable commission, along with equipment purchases related to this
position. The increased expenditures are funded by additional video production revenue and member
contributions.
Excess expenditures in the planning department are due to a newly created residential reconstruction
position that was not budgeted for and are funded by additional permit revenue received. In addition,
higher than anticipated expenses related to small area plans during the year which are funded by
additional revenue received from developers.
Excess expenditures in the legal and court services department are due to increased legal counsel
sought as a result of additional court cases.
Excess expenditures in the commissions and projects department are due to numerous retirements
and related severance payments.
Excess expenditures in the fire protection department are due to a change made in the way we
account for fire aid as requested by the State auditor.
Excess expenditures in the animal control department are due to higher than expected impound fees.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2013
78
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 public works administration department are due to the retirement of an
employee and their related severance payment.
Excess expenditures in the parks administration department are due to increased printing expenses
related to the park and recreation insider magazine and are funded by increased recreation program
registrations.
The HRA, debt service, construction, CDBG, police special revenue, and braemar memorial, and
PACS 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
HRA Fund1,020,256$ 3,900,927$ 2,880,671$
Debt Service Fund6,670,685 16,801,634 10,130,949
CDBG Fund145,365 193,340 47,975
Excess expenditures in the HRA fund are due to the purchase of land for development of additional
parking in the 50th and France area.
Excess expenditures in the debt service fund are due to an unbudgeted refunding of 2007C and
2009B bonds.
Excess expenditures in the CDBG fund are due to higher than anticipated expenses related to
rehabilitation 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.
Pedestrian and Cyclist Safety Fund - This fund was established to account for
funds received from gas and electric franchise fees to be used for pedestrian
and cyclist improvements included in future street reconstruction projects.
A Capital Project Fund is used to account for and report financial resources
used for the acquisition of capital assets.
The following is a nonmajor capital project fund:
Environmental Efficiency Fund - This fund was established to account for funds
received through energy cost savings to be reinvested in future energy efficiencies.
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Capital Project Funds
79
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
Capital
Projects
CommunityPolicePedestrianTotal Nonmajor
DevelopmentSpecialBraemarand CyclistEnvironmentalGovernmental
Block GrantRevenueMemorialSafetyEfficiencyFunds
Assets
Cash and investments-$ 672,977$ 334,178$ 228,772$ -$ 1,235,927$
Accrued interest receivable- 448 992 327 - 1,767
Accounts receivable- - - 285,209 816,654 1,101,863
Due from other governments108,222 48,779 - - - 157,001
Total assets108,222$ 722,204$ 335,170$ 514,308$ 816,654$ 2,496,558$
Liabilities and Fund Balance
Liabilities:
Accounts payable108,222$ 4,861$ -$ 4,537$ -$ 117,620$
Contracts payable- - - 17,409 - 17,409
Total liabilities108,222 4,861 - 21,946 - 135,029
Fund balance:
Restricted- 717,343 335,170 492,362 816,654 2,361,529
Total fund balance- 717,343 335,170 492,362 816,654 2,361,529
Total liabilities
and fund balance108,222$ 722,204$ 335,170$ 514,308$ 816,654$ 2,496,558$
Special Revenue
80
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
Capital
Projects
CommunityPolicePedestrianTotal Nonmajor
DevelopmentSpecialBraemarand CyclistEnvironmentalGovernmental
Block GrantRevenueMemorialSafetyEfficiencyFunds
Revenues:
Franchise Taxes-$ -$ -$ 1,018,308$ -$ 1,018,308$
Intergovernmental193,340 62,831 - 15,000 - 271,171
Fines and forfeitures- 92,491 92,491
Investment income- 794 2,570 1,078 - 4,442
Other- - 786 - - 786
Total revenues193,340 156,116 3,356 1,034,386 - 1,387,198
Expenditures:
Current:
General government193,340 - - - - 193,340
Public safety- 96,775 - - - 96,775
Public works- - - 80,004 - 80,004
Capital Outlay:
Public works- - - 462,020 - 462,020
Total expenditures193,340 96,775 - 542,024 - 832,139
Revenues over
expenditures- 59,341 3,356 492,362 - 555,059
Other financing sources (uses):
Insurance recovery- - - - 816,654 816,654
Net increase (decrease)
in fund balance- 59,341 3,356 492,362 816,654 1,371,713
Fund balance -
January 1- 658,002 331,814 - - 989,816
Fund balance -
December 31-$ 717,343$ 335,170$ 492,362$ 816,654$ 2,361,529$
Special Revenue
81
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, 2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Intergovernmental145,365$ 145,365$ 193,340$ 47,975$
Expenditures:
Current:
Contractual services145,365 145,365 193,340 47,975
Net increase in fund balance-$ -$ - -$
Fund balance - January 1 -
Fund balance - December 31-$
Budgeted Amounts
82
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, 2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Intergovernmental104,760$ 104,760$ 62,831$ (41,929)$
Fines and forfeiture57,821 57,821 92,491 34,670
Investment income600 600 794 194
Total revenues163,181 163,181 156,116 (7,065)
Expenditures:
Current:
Contractual services85,574 85,574 42,493 (43,081)
Commodities18,655 18,655 54,282 35,627
Capital outlay139,425 139,425 - (139,425)
Total expenditures243,654 243,654 96,775 (146,879)
Net increase in fund balance(80,473)$ (80,473)$ 59,341 139,814$
Fund balance - January 1658,002
Fund balance - December 31717,343$
Budgeted Amounts
83
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, 2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Investment income300$ 300$ 2,570$ 2,270$
Donations3,000 3,000 786 (2,214)
Total revenues3,300 3,300 3,356 56
Expenditures:
Current:
Contractual services25,000 25,000 - (25,000)
Capital outlay- 75,000 - (75,000)
Total expenditures25,000 100,000 - (100,000)
Net increase (decrease) in fund balance(21,700)$ (96,700)$ 3,356 100,056$
Fund balance - January 1331,814
Fund balance - December 31335,170$
Budgeted Amounts
84
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - PEDESTRIAN AND CYCLE SAFETY
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Franchise taxes-$ 800,000$ 1,018,308$ 218,308$
Intergovernmental- - 15,000 15,000
Investment income- - 1,078 1,078
Total revenues- 800,000 1,034,386 234,386
Expenditures:
Current:
Central services- 80,004 80,004 -
Capital outlay- 719,996 462,020 (257,976)
Total expenditures- 800,000 542,024 (257,976)
Net increase (decrease) in fund balance-$ -$ 492,362 492,362$
Fund balance - January 1 -
Fund balance - December 31492,362$
Budgeted Amounts
85
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86
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
87
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, 2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
General property taxes3,930,418$ 3,930,418$ 3,892,598$ (37,820)
Special assessments2,072,269 2,072,269 2,837,227 764,958
Intergovernmental- - 118,780 118,780
Investment income30,000 30,000 (19,712) (49,712)
Total revenues6,032,687 6,032,687 6,828,893 796,206
Expenditures:
Debt Service6,670,685 6,670,685 16,801,634 10,130,949
Revenues over (under) expenditures(637,998) (637,998) (9,972,741) (9,334,743)
Other financing sources (uses):
Transfers in559,350 559,350 559,350 -
Bonds issued- - 99,433 99,433
Refunding bonds issued- - 5,710,000 5,710,000
Premium (discount) on bonds issued- - 146,319 146,319
Total other financing
sources (uses)559,350 559,350 6,515,102 5,955,752
Net increase (decrease) in fund balance(78,648)$ (78,648)$ (3,457,639) (3,378,991)$
Fund balance - January 19,704,408
Fund balance - December 316,246,769$
Budgeted Amounts
88
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, 2013
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
General property taxes992,072$ 992,072$ 992,631$ 559
Franchise fees- - 79,398 79,398
Special assessments1,380,052 1,652,039 2,047,283 395,244
License and permits25,000 25,000 28,207 3,207
Intergovernmental50,000 1,090,000 884,790 (205,210)
Charges for services50,000 50,000 103,271 53,271
Investment income122,900 110,700 (18,179) (128,879)
Other revenues- 200,000 272,282 72,282
Total revenues2,620,024 4,119,811 4,389,683 269,872
Expenditures:
Personal services90,315 90,315 110,159 19,844
Contractual services208,281 208,281 202,837 (5,444)
Commodities25,000 25,000 74,096 49,096
Central services1,404 1,404 1,489 85
Capital outlay6,170,940 12,308,170 7,517,131 (4,791,039)
Total expenditures6,495,940 12,633,170 7,905,712 (4,727,458)
Revenues over (under) expenditures(3,875,916) (8,513,359) (3,516,029) 4,997,330
Other financing sources (uses):
Transfers in250,000 3,250,000 2,148,514 (1,101,486)
Transfers out(464,800) (644,400) (281,193) 363,207
Sale of capital assets- - 61,642 61,642
Bonds issued3,451,500 4,251,000 2,455,567 (1,795,433)
Premium on bonds issued- - 87,359 87,359
Discount on bonds issued- - (18,652) (18,652)
Total other financing
sources (uses)3,236,700 6,856,600 4,453,237 (2,403,363)
Net increase (decrease) in fund balance(639,216)$ (1,656,759)$ 937,208 2,593,967$
Fund balance - January 19,919,353
Fund balance - December 3110,856,561$
Budgeted Amounts
89
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90
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.
Sports Dome Fund - This fund accounts for activities related to the
Sports Dome.
NONMAJOR PROPRIETARY FUNDS
Enterprise Funds
91
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
December 31, 2013
Total Nonmajor
ArtEdinboroughCentennialSportsProprietary
Center Park Lakes Dome Funds
Assets
Current assets:
Cash and investments217,543$ 1,573,726$ 1,059,811$ -$ 2,851,080$
Interest receivable330 2,351 5,309 - 7,990
Accounts receivable- 7,828 - - 7,828
Inventory10,723 - - - 10,723
Total current assets228,596 1,583,905 1,065,120 - 2,877,621
Noncurrent assets:
Net capital assets170,174 1,281,770 331,628 92,186 1,875,758
Total noncurrent assets170,174 1,281,770 331,628 92,186 1,875,758
Total assets398,770 2,865,675 1,396,748 92,186 4,753,379
Liabilities:
Current liabilities:
Accounts payable5,378 50,418 17,527 - 73,323
Salaries payable11,742 36,831 29,422 - 77,995
Contracts payable- 46,656 - 75,240 121,896
Due to other funds- - - 16,946 16,946
Due to other governments646 7,751 3,483 - 11,880
Unearned revenue9,725 30 20 - 9,775
Compensated absences payable2,590 20,884 35,943 - 59,417
Total current liabilities30,081 162,570 86,395 92,186 371,232
Noncurrent liabilities:
Net OPEB obligation4,217 11,878 11,878 - 27,973
Compensated absences payable3,885 31,327 53,915 - 89,127
Total noncurrent liabilities8,102 43,205 65,793 - 117,100
Total liabilities38,183 205,775 152,188 92,186 488,332
Net position:
Net investment in capital assets 170,174 1,235,114 331,628 16,946 1,753,862
Unrestricted190,413 1,424,786 912,932 (16,946) 2,511,185
Total net position360,587$ 2,659,900$ 1,244,560$ -$ 4,265,047$
92
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2013
Total Nonmajor
ArtEdinboroughCentennialSportsProprietary
Center Park Lakes Dome Funds
Operating revenues:
Sales - retail37,677$ -$ -$ -$ 37,677$
Sales - concessions442 138,370 32,398 - 171,210
Memberships23,187 64,515 - - 87,702
Admissions- 755,241 - - 755,241
Building rental- 233,055 102,142 - 335,197
Rental of equipment- 12,312 144,654 - 156,966
Greens fees- - 182,125 - 182,125
Class registration & other fees405,715 219,563 274,237 - 899,515
Total operating revenues467,021 1,423,056 735,556 - 2,625,633
Operating expenses:
Cost of sales and services8,863 80,981 13,081 - 102,925
Personal services396,222 649,978 569,029 - 1,615,229
Contractual services84,864 328,538 173,218 - 586,620
Commodities49,597 134,824 98,576 - 282,997
Central Services41,876 59,660 54,120 - 155,656
Depreciation26,227 161,113 36,348 - 223,688
Total operating expenses607,649 1,415,094 944,372 - 2,967,115
Operating income (loss)(140,628) 7,962 (208,816) - (341,482)
Nonoperating revenues (expenses):
Investment income1,088 (55,650) (51,564) - (106,126)
Donations7,341 - 765 - 8,106
Total nonoperating
revenues (expenses)8,429 (55,650) (50,799) - (98,020)
Income (loss) before transfers(132,199) (47,688) (259,615) - (439,502)
Transfers:
Transfers in165,000 66,803 48,364 - 280,167
Change in net position32,801 19,115 (211,251) - (159,335)
Net position - January 1 327,786 2,640,785 1,455,811 - 4,424,382
Net position - December 31360,587$ 2,659,900$ 1,244,560$ -$ 4,265,047$
93
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2013
Total Nonmajor
ArtEdinboroughCentennialSportsProprietary
Center Park Lakes Dome Funds
Cash flows from operating activities:
Receipts from customers and users467,011$ 1,416,096$ 742,268$ -$ 2,625,375$
Payment to suppliers(187,178) (587,115) (332,987) - (1,107,280)
Payment to employees(398,722) (644,124) (552,155) - (1,595,001)
Donations received7,341 - 765 - 8,106
Net cash provided by (used in)
operating activities(111,548) 184,857 (142,109) - (68,800)
Cash flows from noncapital financing activities:
Transfer from other funds165,000 66,803 48,364 - 280,167
Proceeds from interfund borrowing33,268 - - 16,946 50,214
Net cash provided by noncapital
financing activities198,268 66,803 48,364 16,946 330,381
Cash flows from capital and related financing activities:
Acquisition of capital assets- (110,883) (78,669) (16,946) (206,498)
Net cash used in capital and
related financing activities- (110,883) (78,669) (16,946) (206,498)
Cash flows from investing activities:
Interest received758 (51,990) (51,564) - (102,796)
Net increase (decrease) in cash
and investments87,478 88,787 (223,978) - (47,713)
Cash and investments - January 1130,065 1,484,939 1,283,789 - 2,898,793
Cash and investments - December 31217,543$ 1,573,726$ 1,059,811$ -$ 2,851,080$
Reconciliation of operating loss to net cash
provided (used) by operating activities:
Operating loss (140,628)$ 7,962$ (208,816)$ -$ (341,482)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation26,227 161,113 36,348 - 223,688
Donations7,341 - 765 - 8,106
Changes in assets and liabilities:
Decrease (increase) in receivables- (6,960) 6,692 - (268)
Decrease (increase) in inventory72 - - - 72
Increase (decrease) in accounts payable(1,970) 17,260 4,891 - 20,181
Increase (decrease) in salaries payable1,394 4,947 6,908 - 13,249
Increase (decrease) in due to
other governments(80) (372) 1,117 - 665
Increase (decrease) in unearned revenue(10) - 20 - 10
Increase (decrease) in OPEB payable431 991 991 - 2,413
Increase (decrease) in
compensated absences(4,325) (84) 8,975 - 4,566
Total adjustments29,080 176,895 66,707 - 272,682
Net cash provided by (used in)
operating activities(111,548)$ 184,857$ (142,109)$ -$ (68,800)$
Noncash investing activities:
Increase (decrease) in
fair value of investments(289) (68,239) (59,634) - (128,162)
Noncash noncapital financing activities:
Acquisition of capital assets with
contracts payable- (4,576) 19,320 (75,240) (60,496)
94
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
95
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96
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2013
BalanceBalance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash and investments 22,706$ 1$ -$ 22,707$
Liabilities:
Due to other governmental units 22,706$ 1$ -$ 22,707$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash and investments 258,951$ 1,080,975$ 1,003,726$ 336,200$
Liabilities:
Accounts payable10,345$ 283,390$ 287,341$ 6,394$
Salaries payable7,815 223,288 220,942 10,161
Due to other governmental units 240,791 574,297 495,443 319,645
Total Liabilities 258,951$ 1,080,975$ 1,003,726$ 336,200$
PAYROLL
Assets:
Cash and investments 35,301$ 16,857,623$ 16,865,269$ 27,655$
Liabilities:
Accounts payable 35,301$ 16,857,623$ 16,865,269$ 27,655$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and investments 316,958$ 17,938,599$ 17,868,995$ 386,562$
Liabilities:
Accounts payable45,646$ 17,141,013$ 17,152,610$ 34,049$
Salaries payable7,815 223,288 220,942 10,161
Due to other governmental units 263,497 574,298 495,443 342,352
Total Liabilities 316,958$ 17,938,599$ 17,868,995$ 386,562$
97
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98
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2010 2011 2012 2013 2014
Total tax capacity120,816,822$ 113,981,017$ 109,012,566$ 106,529,983$ 108,069,277$
Increment valuation(4,960,337) (4,043,859) (3,917,958) (4,194,083) (4,948,237)
Contribution to fiscal
disparities pool(10,942,782) (11,039,952) (10,283,433) (8,831,694) (9,513,808)
Tax capacity used
for rate calculation104,913,703 98,897,206 94,811,175 93,504,206 93,607,232
Fiscal disparities distribution3,537,906 3,421,345 3,068,256 2,615,313 2,548,571
Adjusted net tax capacity108,451,609$ 102,318,551$ 97,879,431$ 96,119,519$ 96,155,803$
Tax levies:
General fund20,737,472$ 21,004,000$ 21,604,402$ 21,824,894$ 22,509,403$
Equipment940,484 992,072 992,072 992,072 992,072
Debt service3,212,757 3,174,308 3,040,890 3,314,581 3,325,597
Total certified tax levies24,890,713 25,170,380 25,637,364 26,131,547 26,827,072
Referendum market value levy602,250 615,837 610,862 615,837 627,800
Total levy25,492,963$ 25,786,217$ 26,248,226$ 26,747,384$ 27,454,872$
Tax capacity rate:
General fund revenue20.004 21.548 23.131 23.762 24.458
Bonds & interest2.968 3.112 3.116 3.454 3.462
Total tax capacity rate22.972 24.660 26.247 27.216 27.920
Market value rate0.00606 0.00654 0.00667 0.00690 0.00695
99
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2013
Final
InterestMaturityOriginal
RatesDateDateIssue Redeemed
Tax Increment Bonds:Tax Increment Refunding Bonds, Series 2005D 3.00 - 3.4007/19/0502/01/133,505,000$ 2,955,000$
Total Tax Increment Bonds 3,505,000 2,955,000
General Obligation Bonds:
GO Park & Recreation Refunding Bonds,
Series 2005A3.50 - 4.0007/19/0502/01/175,375,000 2,665,000
GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/285,865,000 830,000
GO Capital Improvement Plan, Series 2009A3.00 - 4.4004/29/0902/01/3014,000,000 1,035,000
GO Capital Improvement Plan, Series 2010A2.00 - 4.0011/18/1002/01/218,285,000 1,390,000
GO Equipment Certificates, Series 2010B2.0011/18/1002/01/13230,000 155,000
GO Capital Improvement Plan, Series 2013A -
Refunding3.00 - 3.5010/10/1302/01/30- -
Total General Obligation Bonds 33,755,000 6,075,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving,
Series 2005E3.00 - 3.7509/13/0502/01/161,460,000 910,000
GO Permanent Improvement Revolving
Series 2007C3.60 - 4.2505/24/0702/01/195,870,000 1,585,000
GO Permanent Improvement Revolving
Series 2008B3.00 - 4.0008/28/0802/01/207,755,000 1,330,000
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 - 4.0011/15/1202/01/292,675,000 -
GO Permanent Improvement Revolving
Series 2012A - Refunding3.00 - 4.0011/15/1202/01/191,990,000 -
GO Permanent Improvement RevolvingSeries 2013A 3.00 - 3.5010/10/1302/01/30- -
Total PIR Bonds 25,375,000 3,825,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.00 - 4.1309/13/0505/01/265,425,000 1,205,000
Taxable Public Project Revenue, Series 2009A2.10 - 4.5511/24/0902/01/302,595,000 950,000 Taxable Public Project Revenue, Series 2009B 1.95 - 5.8011/24/0902/01/306,125,000 125,000
Total Public Project Revenue Bonds 14,145,000 2,280,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A7.0002/25/1201/01/2333,690 -
Edina Emerald Energy Progrm Revenue, 2012B 5.5008/28/1201/01/1840,030 -
Total Public Project Revenue Bonds 73,720 -
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00 - 3.0004/29/0901/01/172,010,000 1,240,000
Recreational Facility Bonds, Series 2009C2.00 - 4.0012/10/0902/01/302,440,000 180,000
Recreational Facility Bonds, Series 2012B.45 - 1.6011/15/1202/01/20815,000 -
Recreational Facility Bonds, Series 2012C2.00 - 3.0011/15/1202/01/332,100,000 -
Recreational Facility Bonds, Series 2013B3.00 - 3.4510/10/1302/01/29- -
Utility Revenue Bonds, Series 2003C1.10 - 3.5503/01/0302/01/133,200,000 2,830,000
Utility Revenue Bonds, Series 2007B4.0005/24/0702/01/178,210,000 3,755,000
Utility Revenue Bonds, Series 2008A3.00 - 4.0008/28/0802/01/1913,985,000 4,100,000
Utility Revenue Bonds, Series 2011A2.00 - 3.0010/27/1102/01/2211,230,000 -
Utility Revenue Bonds, Series 2012A 3.00 - 4.0011/15/1202/01/236,100,000 -
Total Public Project Revenue Bonds 50,090,000 12,105,000
Total - Bonded indebtedness 126,943,720$ 27,240,000$
Prior Years
100
PrincipalInterestInterest
OutstandingPayableDueDuePayable
12/31/2012 Issued Payments 12/31/2013 In 2014 In 2014 to Maturity
550,000$ -$ 550,000$ -$ -$ -$ -$
550,000 - 550,000 - - - -
2,710,000 - 500,000 2,210,000 515,000 77,456 179,956
5,035,000 - 230,000 4,805,000 240,000 191,744 1,637,472
12,965,000 - 540,000 12,425,000 555,000 452,599 4,624,833
6,895,000 - 655,000 6,240,000 675,000 236,100 1,051,000
75,000 - 75,000 - - - -
- 5,710,000 - 5,710,000 310,000 132,787 1,530,874
27,680,000 5,710,000 2,000,000 31,390,000 2,295,000 1,090,686 9,024,135
550,000 - 550,000 - - - -
4,285,000 - 4,285,000 - - - -
6,425,000 - 700,000 5,725,000 720,000 201,194 811,330
2,305,000 - 210,000 2,095,000 215,000 47,750 251,625
3,320,000 - - 3,320,000 300,000 77,600 458,700
2,675,000 - - 2,675,000 - 87,750 755,975
1,990,000 - - 1,990,000 320,000 73,200 230,800
- 2,555,000 - 2,555,000 - 61,433 756,759
21,550,000 2,555,000 5,745,000 18,360,000 1,555,000 548,927 3,265,189
4,220,000 - 225,000 3,995,000 235,000 156,944 1,154,886
1,645,000 - - 1,645,000 - 66,810 674,238 6,000,000 - 6,000,000 - - - -
11,865,000 - 6,225,000 5,640,000 235,000 223,754 1,829,124
33,690 - 3,369 30,321 - 1,061 10,613
40,030 - 8,006 32,024 - 881 4,403
73,720 - 11,375 62,345 - 1,942 15,016
770,000 - 450,000 320,000 80,000 8,200 19,300
2,260,000 - 100,000 2,160,000 100,000 78,350 783,400
815,000 - - 815,000 110,000 7,590 32,956
2,100,000 - - 2,100,000 - 53,794 740,885
- 1,125,000 - 1,125,000 - 28,263 318,686
370,000 - 370,000 - - - -
4,455,000 - 820,000 3,635,000 855,000 128,300 298,100
9,885,000 - 1,245,000 8,640,000 1,295,000 317,075 1,092,431
11,230,000 - 965,000 10,265,000 1,050,000 231,350 1,228,777
6,100,000 - - 6,100,000 470,000 207,350 1,082,075
37,985,000 1,125,000 3,950,000 35,160,000 3,960,000 1,060,272 5,596,610
99,703,720$ 9,390,000$ 18,481,375$ 90,612,345$ 8,045,000$ 2,925,581$ 19,730,074$
2013
101
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, 2013
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 18,939,878 - 10,797,229
Real estate sales *- 4,700,000 5,402,344 - (702,344)
Interest on invested funds- 300,000 1,177,583 4,751 (882,334)
Other- - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 35,056,788 4,751 9,575,568
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 9,738,935 141,997 7,246,068
Bond payments:
Principal- 9,900,000 9,637,555 - 262,445
Interest- 9,190,000 3,344,904 - 5,845,096
Loan/note interest- - 5,150,288 - (5,150,288)
Paid to other governments- - 208,163 2,578 (210,741)
Administrative costs190,000 1,920,107 1,375,451 33,056 511,600
Total uses of funds:4,500,000 44,637,107 34,440,024 177,631 10,019,452
Funds remaining (deficit)-$ -$ 616,764$ (172,880)$ (443,884)$
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$
102
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, 2013
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 51,774,953 3,782,583 74,442,464
Real estate sales *5,000,000 9,137,070 11,637,070 - (2,500,000)
Special assessment- - - - -
Interest on invested funds- 5,000,000 4,628,672 (124,864) 496,192
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:126,400,000 144,137,070 141,024,678 3,657,719 (545,327)
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 14,494,553 2,952,077 (2,446,630)
Other qualifying
improvements- 50,337,070 6,718,758 - 43,618,312
Bond payments:
Principal41,400,000 - 35,344,724 550,000 (35,894,724)
Interest38,000,000 47,000,000 34,287,806 9,350 12,702,844
Administrative costs1,140,800 1,800,000 1,530,556 254,266 15,178
Paid to other governments- - 55,572 2,578 (58,150)
Loan/note interest- - 7,388,872 615,537 (8,004,409)
Parkland dedication fees- - 2,030,345 - (2,030,345)
Total uses of funds:121,117,800 144,137,070 124,832,611 4,383,808 14,920,651
Funds remaining (deficit)5,282,200$ -$ 16,192,067$ (726,089)$ (15,465,978)$
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$
103
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, 2013
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- - 305,955 3,216 (309,171)
Total sources of funds:4,088,855 4,088,855 1,052,818 3,216 3,032,821
Uses of funds:
Land acquisition529,400 529,400 47,580 1,699 480,121
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 4,088,855 665,419 1,699 3,421,737
Funds remaining (deficit)-$ -$ 387,399$ 1,517$ (388,916)$
104
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR SOUTHDALE 2-NO. 1208, A TAX INCREMENT FINANCING DISTRICT
December 31, 2013
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Tax increments received11,702,217$ 11,702,217$ -$ 199,356$ 11,502,861$
Interest on invested funds250,000 250,000 - 456 249,544
Total sources of funds:11,952,217 11,952,217 - 199,812 11,752,405
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 - 1,791 3,576,130
Administrative costs1,100,000 1,100,000 - 1,074 1,098,926
Total uses of funds:11,952,217 11,952,217 5,000,000 2,865 6,949,352
Funds remaining (deficit)-$ -$ (5,000,000)$ 196,947$ 4,803,053$
105
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106
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
108
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.
116
120
125
127
107
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2004 2005 2006 2007
Governmental activities
Net investment in capital assets34,320,784$ 36,092,020$ 69,814,012$ 67,680,882$
Restricted2,145,488 78,943 - -
Unrestricted28,762,040 35,796,801 15,280,058 25,136,312
Total governmental
activities net position65,228,312$ 71,967,764$ 85,094,070$ 92,817,194$
Business-type activities
Net investment in capital assets37,240,476$ 40,044,169$ 46,981,755$ 43,046,160$
Restricted- - - -
Unrestricted11,934,496 11,121,720 6,379,515 13,649,355
Total business-type
activities net position49,174,972$ 51,165,889$ 53,361,270$ 56,695,515$
Primary government
Net investment in capital assets71,561,260$ 76,136,189$ 116,795,767$ 110,727,042$
Restricted2,145,488 78,943 - -
Unrestricted40,696,536 46,918,521 21,659,573 38,785,667
Total primary government
net position114,403,284$ 123,133,653$ 138,455,340$ 149,512,709$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of
this change in accounting principle.
Fiscal Year
108
2008 2009 2010 2011 2012 2013a
71,601,227$ 69,622,370$ 69,783,162$ 75,045,018$ 78,644,392$ 83,842,970$
3,362,446 7,132,865 9,952,443 22,915,776 23,215,910 20,289,579
29,577,462 30,705,600 41,709,528 29,544,149 29,587,700 33,242,317
104,541,135$ 107,460,835$ 121,445,133$ 127,504,943$ 131,448,002$ 137,374,866$
46,851,736$ 47,333,794$ 48,807,806$ 56,877,100$ 63,766,144$ 66,126,387$
954,486 624,837 618,852 623,099 876,909 611,377
12,071,776 15,158,720 17,041,122 12,926,674 14,390,609 16,867,459
59,877,998$ 63,117,351$ 66,467,780$ 70,426,873$ 79,033,662$ 83,605,223$
118,452,963$ 116,956,164$ 118,590,968$ 131,922,118$ 142,410,536$ 149,969,357$
4,316,932 7,757,702 10,571,295 23,538,875 24,092,819 20,900,956
41,649,238 45,864,320 58,750,650 42,470,823 43,978,309 50,109,776
164,419,133$ 170,578,186$ 187,912,913$ 197,931,816$ 210,481,664$ 220,980,089$
Fiscal Year
109
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2004 2005 2006 2007
Expenses
Governmental activities:
General government6,934,045$ 4,967,008$ 5,414,961$ 7,039,298$
Public safety11,063,767 12,019,027 13,300,351 13,743,194
Public works5,834,490 7,185,784 8,973,031 8,757,022
Parks4,248,060 5,901,648 5,341,682 5,025,560
Interest on long-term debt2,399,682 2,288,524 2,973,749 1,887,633
Total governmental activities expenses30,480,044 32,361,991 36,003,774 36,452,707
Business-type activities:
Utilities7,801,580 8,254,409 9,234,651 10,036,844
Liquor9,110,888 9,749,313 9,968,963 10,361,998
Aquatic center701,768 725,936 795,614 780,981
Golf course3,508,741 3,580,307 3,652,169 3,621,977
Arena1,492,461 1,497,431 1,542,098 1,538,407
Community activity centers2,357,731 2,328,131 2,506,551 2,630,127
Total business-type activities expenses24,973,169 26,135,527 27,700,046 28,970,334
Total primary government expenses55,453,213$ 58,497,518$ 63,703,820$ 65,423,041$
Program Revenues
Governmental activities:
Charges for services:
General government454,603$ 619,526$ 731,613$ 784,659$
Public safety4,634,744 5,614,406 6,146,114 5,632,642
Other activities748,398 630,157 793,796 736,329
Operating grants and contributions1,154,808 1,512,366 1,423,302 1,384,024
Capital grants and contributions4,192,947 2,252,491 4,013,617 4,299,509
Total governmental activities program revenues11,185,500 10,628,946 13,108,442 12,837,163
Business-type activities:
Charges for services:
Utilities9,875,078 10,240,381 11,421,474 13,125,773
Liquor10,030,067 10,752,724 11,029,445 11,436,175
Aquatic center764,134 849,380 867,626 868,833
Golf course3,538,122 3,482,999 3,646,620 3,630,538
Arena1,319,987 1,376,607 1,418,555 1,414,173
Community activity centers1,934,025 1,875,253 1,918,598 2,102,938
Operating grants and contributions138,447 131,408 122,358 127,492
Total business-type activities program revenues27,599,860 28,708,752 30,424,676 32,705,922
Total primary government program revenues38,785,360$ 39,337,698$ 43,533,118$ 45,543,085$
Net (Expense)/Revenue
Governmental activities(19,294,544)$ (21,733,045)$ (22,895,332)$ (23,615,544)$
Business-type activities2,626,691 2,573,225 2,724,630 3,735,588
Total primary government net expense(16,667,853)$ (19,159,820)$ (20,170,702)$ (19,879,956)$
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$
Tax increment collections6,761,934 7,060,744 7,228,002 7,793,577
Franchise taxes450,956 457,421 499,206 570,871
Unrestricted investment earnings443,074 977,956 1,230,264 1,581,702
Gain on disposal of capital assets- 63,674 8,418 58,377
Insurance recovery- - - -
Transfers655,227 841,500 838,230 919,625
Total governmental activities26,176,948 28,472,497 30,218,418 32,383,153
Business-type activities:
Property taxes-$ -$ -$ -$
Unrestricted investment earnings227,167 236,654 283,771 510,678
Gain (loss) on disposal of capital assets6,490 22,538 25,210 7,604
Transfers(655,227) (841,500) (838,230) (919,625)
Total business-type activities(421,570) (582,308) (529,249) (401,343)
Total primary government25,755,378$ 27,890,189$ 29,689,169$ 31,981,810$
Change in Net Position
Governmental activities6,882,404$ 6,739,452$ 7,323,086$ 8,767,609$
Business-type activities2,205,121 1,990,917 2,195,381 3,334,245
Total primary government9,087,525$ 8,730,369$ 9,518,467$ 12,101,854$
a The City implemented GASB 65 in fiscal year 2013. Prior year information has not been restated as a result of
this change in accounting principle.
Fiscal Year
110
2008 2009 2010 2011 2012 2013a
6,836,248$ 7,362,560$ 6,961,082$ 7,013,231$ 12,598,979$ 8,256,261$
14,833,647 14,751,479 15,543,594 16,024,575 16,598,423 17,117,693
9,046,873 8,993,290 8,558,363 9,193,336 9,437,285 11,502,250
5,971,565 7,732,777 5,608,758 5,540,585 5,904,724 6,132,709
1,923,821 2,129,490 2,528,424 2,339,370 2,222,392 2,024,749
38,612,154 40,969,596 39,200,221 40,111,097 46,761,803 45,033,662
10,625,811 11,833,994 11,848,538 12,130,685 12,610,875 13,748,186
11,049,223 11,449,194 11,594,643 11,727,106 11,740,744 12,261,413
787,663 798,369 769,608 718,027 866,944 822,932
3,612,482 3,588,831 3,561,573 3,390,949 3,293,192 3,199,815
1,689,660 1,665,082 1,527,536 1,689,001 2,182,200 2,272,510
2,813,189 2,971,293 2,965,243 2,998,915 2,842,139 2,967,115
30,578,028 32,306,763 32,267,141 32,654,683 33,536,094 35,271,971
69,190,182$ 73,276,359$ 71,467,362$ 72,765,780$ 80,297,897$ 80,305,633$
840,070$ 811,087$ 946,107$ 969,745$ 1,142,984$ 1,259,908$
5,839,683 5,081,563 5,448,505 5,988,485 6,549,929 7,410,755
763,130 804,500 723,559 775,676 913,864 846,999
1,170,183 1,377,785 1,162,411 1,392,892 1,685,026 2,283,007
7,710,015 2,582,999 13,325,431 5,770,912 9,137,011 6,372,735
16,323,081 10,657,934 21,606,013 14,897,710 19,428,814 18,173,404
13,713,249 14,858,488 15,036,016 15,873,937 17,729,589 17,831,225
12,122,599 12,655,777 12,857,064 13,172,484 13,230,941 13,711,557
925,388 859,816 945,529 913,383 1,001,946 928,055
3,680,584 3,660,466 3,443,204 3,285,741 3,225,591 2,711,743
1,399,599 1,414,410 1,301,506 1,315,435 1,452,435 1,942,971
2,117,619 2,192,274 2,194,476 2,331,136 2,399,090 2,625,633
147,456 135,917 373,230 135,428 1,042,195 516,242
34,106,494 35,777,148 36,151,025 37,027,544 40,081,787 40,267,426
50,429,575$ 46,435,082$ 57,757,038$ 51,925,254$ 59,510,601$ 58,440,830$
(22,289,073)$ (30,311,662)$ (17,594,208)$ (25,213,387)$ (27,332,989)$ (26,860,258)$
3,528,466 3,470,385 3,883,884 4,372,861 6,545,693 4,995,455
(18,760,607)$ (26,841,277)$ (13,710,324)$ (20,840,526)$ (20,787,296)$ (21,864,803)$
22,242,276$ 23,834,274$ 25,122,113$ 25,040,871$ 25,884,662$ 26,894,161$
8,578,434 7,587,386 4,488,073 4,083,345 3,536,935 3,981,938
647,466 667,791 692,288 722,160 815,530 1,891,967
1,185,899 387,177 474,444 601,250 341,986 (96,390)
1,265 11,709 35,594 131,365 - 16,654
- - - - - 816,654
967,800 743,025 765,994 694,206 696,935 133,907
33,623,140 33,231,362 31,578,506 31,273,197 31,276,048 33,638,891
-$ 300,372$ -$ -$ -$ -$
607,312 209,371 205,965 280,438 113,177 (77,848)
14,505 2,250 26,574 - 2,644,854 17,587
(967,800) (743,025) (765,994) (694,206) (696,935) (133,907)
(345,983) (231,032) (533,455) (413,768) 2,061,096 (194,168)
33,277,157$ 33,000,330$ 31,045,051$ 30,859,429$ 33,337,144$ 33,444,723$
11,334,067$ 2,919,700$ 13,984,298$ 6,059,810$ 3,943,059$ 6,778,633$
3,182,483 3,239,353 3,350,429 3,959,093 8,606,789 4,801,287
14,516,550$ 6,159,053$ 17,334,727$ 10,018,903$ 12,549,848$ 11,579,920$
Fiscal Year
111
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2004 2005a 2006 2007
General fund
Reserved390,771$ 223,351$ 36,849$ 28,637$
Unreserved10,226,055 11,595,433 13,797,189 14,078,220
Nonspendable- - - -
Restricted- - - -
Assigned- - - -
Unassigned- - - -
Total general fund10,616,826$ 11,818,784$ 13,834,038$ 14,106,857$
All other governmental funds
Reserved3,465,440$ 13,792,312$ 2,682,238$ 6,247,539$
Unreserved, reported in:
Special revenue funds781,458 731,027 13,179,904 14,750,448
Capital projects funds16,651,788 17,032,750 3,160,085 5,853,322
Restricted, reported in:
Special revenue funds- - - -
Debt service funds- - - -
Construction funds- - - -
Assigned, reported in:
Capital projects funds- - - -
Total all other governmental funds20,898,686$ 31,556,089$ 19,022,227$ 26,851,309$
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
112
2008 2009b 2010 2011c 2012 2013
13,982$ 18,241$ 10,258$ -$ -$ -$
14,365,021 12,031,358 12,868,952 - - -
- - - 10,871 413,200 13,322
- - - 178,295 880,395 185,395
- - - 1,539,286 1,643,077 1,559,461
- - - 11,744,764 11,902,462 12,573,457
14,379,003$ 12,049,599$ 12,879,210$ 13,473,216$ 14,839,134$ 14,331,635$
8,467,918$ 15,223,353$ 9,460,834$ -$ -$ -$
14,950,538 12,813,439 15,333,460 - - -
4,270,440 6,683,668 12,150,968 - - -
- - - 17,178,857 13,185,962 13,040,516
- - - 8,068,183 9,704,408 6,246,769
- - - 2,087,548 2,759,463 3,318,947
- - - 8,098,935 7,159,890 8,354,268
27,688,896$ 34,720,460$ 36,945,262$ 35,433,523$ 32,809,723$ 30,960,500$
Fiscal Year
113
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2004 2005 2006 2007a
Revenues
General property taxes17,865,757$ 19,071,202$ 20,414,298$ 21,459,001$
Tax increment collections6,761,934 7,060,744 7,228,002 7,793,577
Special assessments966,879 1,354,264 1,751,219 1,750,444
Franchise fees450,956 457,421 499,206 570,871
License and permits2,247,759 3,240,622 3,488,897 2,909,521
Intergovernmental3,933,540 1,539,169 2,773,350 3,699,006
Charges for services2,279,302 2,466,663 2,691,354 2,748,709
Fines and forfeitures863,073 742,917 1,023,935 971,486
Investment income443,074 977,956 1,230,264 1,581,702
Rental of property385,707 315,542 310,145 355,734
Parkland dedication- - - -
Other revenues294,136 227,446 246,797 225,839
Total revenues36,492,117 37,453,946 41,657,467 44,065,890
Expenditures
General government5,213,469 5,477,308 5,995,804 6,544,307
Public safety11,125,388 11,373,763 12,431,114 12,985,215
Public works4,386,669 4,882,811 5,233,907 5,787,619
Parks2,954,372 3,146,029 3,300,375 3,455,789
Capital outlay7,772,321 8,227,191 8,980,526 11,991,122
Debt service
Principal6,450,000 6,830,000 5,985,000 6,190,000
Interest and other charges2,484,291 2,543,639 2,107,036 1,677,770
Total expenditures40,386,510 42,480,741 44,033,762 48,631,822
Revenues over (under) expenditures(3,894,393) (5,026,795) (2,376,295) (4,565,932)
Other Financing Sources (Uses)
Transfers in8,367,595 7,797,369 6,865,258 7,290,391
Transfers out(7,712,368) (6,955,869) (6,027,028) (6,370,766)
Sale of capital assets- 135,045 54,457 66,845
Insurance recovery- - - -
Bonds issued- 15,816,165 - 11,735,000
Premium on bonds issued- - - -
Discount on bonds issued- (36,275) - (53,637)
Refunding bonds issued- 16,764,721 - -
Payment to refunding escrow- (16,635,000) - -
Principal paid by escrow- - (9,035,000) -
Total other financing sources (uses)655,227 16,886,156 (8,142,313) 12,667,833
Net change in fund balances(3,239,166)$ 11,859,361$ (10,518,608)$ 8,101,901$
Debt service as a percentage of
noncapital expenditures27.4%27.4%23.1%21.5%
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
114
2008 2009 2010 2011 2012 2013
22,242,276$ 23,834,274$ 25,122,113$ 24,972,166$ 25,838,422$ 26,891,756$
8,578,434 7,587,386 4,488,073 4,083,345 3,536,935 3,981,938
2,442,490 2,703,833 6,746,186 4,502,112 4,975,641 4,884,510
647,466 667,791 692,288 722,160 815,530 1,891,967
2,915,455 2,104,967 2,410,314 2,724,763 3,155,351 4,150,512
3,005,883 1,507,170 3,726,849 3,059,964 2,032,966 2,509,166
3,093,941 2,905,410 3,014,894 3,181,961 3,708,482 3,667,612
1,073,174 1,224,983 1,203,767 1,243,426 1,195,054 1,109,710
1,185,899 387,177 474,444 601,250 341,986 (96,390)
255,607 343,616 426,517 539,091 506,276 518,862
- - - - 702,100 -
126,723 160,035 413,400 156,231 240,841 278,607
45,567,348 43,426,642 48,718,845 45,786,469 47,049,584 49,788,250
6,235,352 6,895,329 6,523,398 5,739,481 6,624,573 7,351,556
13,788,797 13,692,686 14,177,387 14,668,772 14,985,068 15,859,622
6,189,594 5,911,758 5,898,023 6,000,539 6,277,506 7,018,614
3,693,595 3,688,063 3,524,950 3,633,922 3,852,260 3,915,568
14,666,907 22,997,065 13,505,827 14,235,496 13,622,443 10,690,207
7,090,000 7,415,000 2,975,000 4,480,000 6,620,000 14,531,375
1,967,021 1,841,342 2,584,006 2,278,068 2,292,394 2,270,259
53,631,266 62,441,243 49,188,591 51,036,278 54,274,244 61,637,201
(8,063,918) (19,014,601) (469,746) (5,249,809) (7,224,660) (11,848,951)
7,983,585 11,347,773 2,903,762 5,615,669 4,495,940 3,472,964
(7,015,785) (10,604,748) (2,137,768) (4,921,463) (3,799,005) (3,339,057)
96,825 34,592 134,329 209,773 94,975 61,642
- - - - - 816,654
7,755,000 22,950,000 2,535,000 3,320,000 2,748,720 2,555,000
- 64,765 898,658 108,097 436,148 275,360
(35,848) (75,621) - - - (60,334)
- - 8,285,000 - 1,990,000 5,710,000
- - (9,094,822) - - -
- - - - - -
8,783,777 23,716,761 3,524,159 4,332,076 5,966,778 9,492,229
719,859$ 4,702,160$ 3,054,413$ (917,733)$ (1,257,882)$ (2,356,722)$
22.6%21.7%15.4%17.8%19.4%32.2%
Fiscal Year
115
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
6,909,477$ 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
8,955,431 8,955,431 8,798,601 106,530 93,504 96,120 27.216%0.00690%2.921
Source: Hennepin County Taxpayer Services. 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.
2013
Year
2011
2012
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2010
Fiscal Direct
2008
2009
2004
2005
2006
2007
116
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
BasicDebtTotal TaxDirect &
RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap
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%
23.762%3.454%27.216%0.007%49.461%27.762%0.217%11.483%115.922%
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.
City RatesOverlapping Rates
ISD #273 EdinaFiscal
Year
2013
2008
2009
2004
2005
2006
2007
2010
2011
2012
117
CITY OF EDINA, MINNESOTA
PRINCIPAL PROPERTY TAX PAYERS
CURRENT YEAR AND NINE YEARS AGO
PercentagePercentage
of Totalof Total
Tax CapacityRankCapacityTax CapacityRankCapacity
Southdale Shopping Center2,506,810$ 12.35%3,154,408$ 13.78%
Galleria Shopping Center1,593,450 21.50%949,864 21.14%
Centennial Lakes Retail715,026 30.67%- 0.00%
Southdale Office Park701,274 40.66%717,250 30.86%
Southdale Medical Building620,285 50.58%428,608 70.51%
Centennial Lakes Phase V580,176 60.54%509,625 40.61%
Centennial Lakes Phase IV568,936 70.53%496,474 50.59%
National Car508,794 80.48%- 0.00%
Target439,250 90.41%- 0.00%
Hellmuth & Johnson361,620 100.34%- 0.00%
May Department Stores- 0.00%343,044 80.41%
7700 France- 0.00%450,214 60.54%
Centennial Lakes Phase II- 0.00%301,066 90.36%
Centennial Lakes Phase III- 0.00%301,066 100.36%
Totals8,595,621$ 8.07%7,651,619$ 9.17%
Source: City of Edina Assessing Office
20042013
Taxpayer
118
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections in
TaxPercentageSubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
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 174,769 22,353,488 98.88%
24,153,933 23,484,137 c 97.23%c 57,006 23,541,143 97.46%
25,492,973 24,904,346 97.69%(300,821) 24,603,525 96.51%
25,786,217 25,067,625 97.21%(65,175) 25,002,450 96.96%
26,248,226 25,983,685 98.99%76,237 26,059,922 99.28%
26,747,384 26,545,984 99.25%- 26,545,984 99.25%
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.
Total Collections to Date
Taxes
Payable
2008
2009
2013
Collected within the
Fiscal Year of the Levy
2007
2004
2005
2006
2011
2010
2012
119
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
7,265$ 11,428$ 30,663$ -$ -$ 6,295$ 4,837$ 60,488$ 2.57%1,256$
11,786 16,381 28,828 1,452 - 5,450 4,197 68,094 2.91%1,435
5,687 15,913 20,402 1,453 - 4,577 3,534 51,566 2.18%1,100
10,963 15,235 15,628 7,152 - 3,675 11,133 63,786 2.39%1,355
10,393 14,531 10,000 14,719 - 2,835 23,779 76,257 2.99%1,583
24,057 22,442 4,115 14,574 - 4,479 21,713 91,380 3.54%1,897
32,595 13,282 3,314 16,254 - 4,059 19,507 89,011 3.39%1,857
30,417 13,077 2,477 18,353 - 3,569 28,800 96,693 3.66%2,004
28,318 11,787 550 22,067 74 5,952 33,160 101,908 3.71%2,087
32,035 5,627 - 18,889 62 6,540 29,635 92,788 2.93%1,900
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
All figures are presented net of related premiums, discounts, and adjustments if applicable.
Business-Type Activities
Year
Fiscal
2013
2004
2005
2006
2007
2010
2011
2008
2009
2012
Governmental Activities
120
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 a Property Value b Per Capita
7,265$ 0.11%151$
11,786 0.15%248
5,687 0.07%121
10,963 0.11%233
10,393 0.10%216
24,057 0.24%499
32,595 0.33%680
30,417 0.32%630
28,318 0.31%580
32,035 0.36%656
Details regarding the City's outstanding debt may be found in the notes to the financial statements.
a Presented net of related premiums, discounts, and adjustments.
b See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for
estimated property value data.
Year
Fiscal
2008
2013
2011
2010
2009
2004
2005
2006
2007
2012
121
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2013
Net GeneralPercentage
Obligation Bonded ApplicableCity Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County723,264,582$ 7.59%54,895,782$
Hennepin Suburban Park District54,166,123 10.31%5,584,527
Hennepin Regional Rail Authority37,350,216 10.31%3,850,807
School Districts:
ISD No. 273 (Edina)62,133,856 98.43%61,158,354
ISD No. 270 (Hopkins)169,181,538 8.30%14,042,068
ISD No. 271 (Bloomington)23,073,790 0.01%2,307
ISD No. 272 (Eden Prairie)62,244,819 1.00%622,448
ISD No. 280 (Richfield)21,621,293 22.48%4,860,467
ISD No. 283 (St. Louis Park)39,643,656 0.02%7,929
Metro Council158,664,771 3.47%5,505,668
Total Overlapping Debt1,351,344,644 150,530,357
City of Edina56,613,468 100.00%56,613,468
Total Overlapping and Direct Debt1,407,958,112$ 207,143,825$
Ratio of debt per capita (48,829 population)4,242$
Ratio of debt to estimated market valuation of $8,955,431,0002.31%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
122
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2004 2005 2006 2007 2008a 2009 2010 2011 2012 2013
Debt limit 160,674$ 173,867$ 191,974$ 199,775$ 302,385$ 301,369$ 298,494$ 282,958$ 270,767$ 263,958$
Total net debt
applicable
to limit 18,890 29,785 21,750 26,380 25,095 46,670 45,170 42,860 39,545 37,030
Legal debt
margin 141,784$ 144,082$ 170,224$ 173,395$ 277,290$ 254,699$ 253,324$ 240,098$ 231,222$ 226,928$
Total net debt
applicable to
the limit as a
percentage of
debt limit 11.76%17.13%11.33%13.20%8.30%15.49%15.13%15.15%14.60%14.03%
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.
263,958,018
5,640,000
226,928,018$
Fiscal Year
8,798,600,609$
31,390,000
37,030,000
Legal Debt Margin Calculation for Fiscal Year 2013
123
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)
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
20131,346,294 - 1,346,294 6,225,000 589,734 6,814,734 0.20
Tax Increment Bonds
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
20133,981,939 - 3,981,939 550,000 9,350 559,350 7.12
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
20132,837,227 - 2,837,227 5,745,000 567,551 6,312,551 0.45
Utility Bond
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 2,360,000 811,990 3,171,990 1.86
201317,830,425 12,893,159 4,937,266 3,400,000 933,970 4,333,970 1.14
Recreational Facility Bonds
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)
20135,582,769 6,118,195 (535,426) 550,000 138,127 688,127 (0.78)
Debt service requirementsFiscal
Year
124
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Estimated
PersonalPer CapitaHigh School
IncomePersonalGraduationUnemployment
Population(In thousands)IncomeRateRate
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%
48,8292,749,854 56,316 97.4%4.56%
48,8293,168,807 64,896 97.7%3.98%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2012 is the most recent.
Personal income and per capita income estimates based on MN Department of Employment
and Economic Development Quarterly Census of Employment and Wages. 2012 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.
2013
2010
2011
Fiscal
Year
2009
2008
2007
2006
2005
2004
2012
125
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total City Total City
EmployeesRankEmployment EmployeesRankEmployment
Fairview Southdale Hospital2,613 111.38%2,500 211.05%
Edina Public Schools ISD #2731,693 27.37%1,172 45.18%
BI Worldwide1,000 34.35%DNADNADNA
City of Edina735 43.20%262 71.16%
Regis Corporation600 52.61%DNADNADNA
International Dairy Queen Inc.490 62.13%300 61.33%
Barr Engineering445 71.94%DNADNADNA
Edina Realty400 81.74%210 90.93%
FilmTec Corporation400 91.74%DNADNADNA
Lund Food Holdings, Inc397 101.73%DNADNADNA
Macy's (Marshall Field's or Dayton's)- 0.00%1,200 35.30%
Jerry's Enterprises, Inc.- 0.00%4,500 119.89%
Con Agra Foods- 0.00%196 100.87%
JC Penny Co.- 0.00%250 81.11%
Nash Finch Co.- 0.00%350 51.55%
Totals8,773 38.19%10,940 48.36%
Sources:
2013 data from Infogroup (www.salesgenie.com), written and telephone survey (August 2013) done by Ehlers,
and the Minnesota Department of Employment and Economic Development.
2004 data from previous CAFR.
DNA: Historical data is not available
20042013
Employer
126
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 b
General Government
Administration8.25 8.25 8.25 8.25 8.25 8.25 8.25 8.25 7.85 7.85
Communications- - - - - - - - 4.65 4.65
Planning3.75 3.75 3.75 3.75 3.75 3.85 3.85 3.85 3.85 3.85
Finance5.50 5.50 5.50 5.50 5.50 5.50 5.50 5.25 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
Engineering7.50 7.50 7.50 8.50 8.50 8.50 8.50 8.50 10.50 10.50
Supervision2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.30 2.30 2.30
Maintenance28.00 28.00 28.00 28.00 28.00 27.00 27.00 27.00 28.00 28.00
Public Safety
Police Protection66.00 69.00 69.00 70.00 70.00 71.00 70.00 67.50 68.00 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 33.00 33.00 33.00 33.00 32.00 32.00 32.00
Public Health2.75 2.75 2.75 2.75 2.75 2.65 2.65 2.65 2.65 2.65
Inspections6.50 6.50 6.50 7.50 7.50 7.50 7.50 7.50 7.75 10.75
Parks & Recreation
Administration6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80
Maintenance16.50 16.40 16.40 16.40 16.40 16.40 16.40 16.40 16.40 16.40
Central Services
General2.00 2.00 2.00 3.00 3.00 3.00 3.00 5.00 5.00 5.00
City Hall1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.10 1.00 1.00
Public Works Bldg0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 1.00 1.00
Equipment Ops6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50
Utilities 15.50 15.75 15.75 15.25 15.75 18.75 18.75 17.20 16.70 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 0.55
Golf Course 13.00 13.00 13.00 13.00 13.00 13.00 13.00 11.00 12.00 12.00
Arena 6.00 6.00 6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00
Art Center 3.00 2.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park 7.00 7.00 6.00 7.00 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 4.00 4.00 5.00 5.00 4.50 - -
Total 268.50 271.50 270.00 277.50 278.00 281.00 280.00 274.00 278.00 281.00
Source: City of Edina Finance Department
a Employee counts do not include Council members, part-time, contract or seasonal employees.
b The City completed a major departmental reorganization that is reflected on this chart between years 2012-2013.
In some cases, data for years before the reorganization has been modified from what was originally reported to
improve comparisons.
Budgeted Full-time Employees for Fiscal Year a
Function
127
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General Government
Total City employees870 909 887 890 918 885 869 892 989 1,040
Votes cast a 31,730 1,367 26,270 7,930 31,512 2,733 25,463 7,957 31,841 3,480
Public Works
Asphalt placed (tons)- - 9,000 8,000 7,500 9,500 7,643 8,500 9,000 9,273
Concrete (cu. yds.)- - 650 850 480 640 503 558 667 560
Public Safety
Crimes reported1,983 1,908 1,937 2,010 2,025 1,985 1,890 1,590 1,628 NA
Fire calls1,060 1,055 963 1,012 913 852 910 960 858 893
Medical calls3,199 3,423 3,470 3,510 3,516 3,496 3,599 3,652 3,946 3,803
Central Services
Vehicle fixes- - 2,398 2,460 2,967 2,539 2,431 2,331 2,546 3,493
Utilities
Daily consumption b - - 7,209 7,372 7,376 7,596 6,790 6,909 7,613 6,652
Aquatic Center
Attendance88,636 139,415 120,406 114,173 110,000 64,836 86,654 77,696 139,909 91,340
Golf Course
Total rounds played116,734 113,679 114,737 112,821 112,663 117,819 101,314 95,771 96,496 79,529
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
128
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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 connections14,851 14,851 14,851 14,851 14,851 13,933 13,933 13,933 13,979 13,979
Arena
Ice sheets3 3 3 3 3 3 3 3 3 3
Source: Various City departments
Fiscal Year
Function
129