HomeMy WebLinkAbout2014 Comprehensive Annual Financial ReportComprehensive Annual Financial
Report for the Fiscal Year
Ended Dec. 31, 2014
0 ,• • .alarur r
a ,
.
• 'Jae
- a
Jpf f ype• "t ext. t Of
USerAgent. tg., f . tiserrigenf
n
ina t-ct querySeiect
ot-( 'oortmeta. COtef)i
z/o7-scalez---7.
0 •
ta lllem
r)
v1(46.7)0,
Iv .1 • _—
CITY OF EDINA, MINNESOTA
Comprehensive Annual Financial Report
For the fiscal year ended
December 31, 2014
Prepared by:
Department of Finance
Eric Roggeman – Treasurer and Finance Director
Kyle Sawyer – Assistant Finance Director
Jake Bosley – 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 Financial Statements 35
Required Supplementary Information:
Budgetary Comparison Information:
Budgetary Comparison Schedule - General Fund69
Budgetary Comparison Schedule - Housing and Redevelopment Authority (HRA)72
Other Post-Employment Benefits Plan Schedule of Funding Progress73
Notes to Required Supplementary Information74
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Combining and Individual Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds78
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Governmental Funds79
Special Revenue Fund - Community Development Block Grant
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 80
Special Revenue Fund - Police Special Revenue
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 81
Special Revenue Fund - Braemar Memorial
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 82
Special Revenue Fund - Pedestrian and Cycle Safety
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 83
Governmental Fund - Debt Service
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 86
Governmental Fund - Construction
Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual 87
Combining Statement of Net Position - Nonmajor Proprietary Funds90
Combining Statement of Revenues, Expenses and Changes in
Fund Net Position - Nonmajor Proprietary Funds91
Combining Statement of Cash Flows - Nonmajor Proprietary Funds92
Combining Statement of Changes in Assets and Liabilities - Agency Funds95
Supplementary Financial Information:
Tax Capacity, Tax Levies and Tax Capacity Rates97
Combined Schedule of Bonded Indebtedness98
Schedule of Sources and Uses of Public Funds for Grandview Area
Redevelopment District - #1202100
CITY OF EDINA, MINNESOTA
TABLE OF CONTENTS
Page
No.
Schedule of Sources and Uses of Public Funds for Southeast Edina
Redevelopment District - #1203101
Schedule of Sources and Uses of Public Funds for 70th Street and
Cahill Road District - #1207 102
Schedule of Sources and Uses of Public Funds for Southdale 2 - #1208103
Schedule of Sources and Uses of Public Funds for Pentagon Park - #1211104
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component 106
Changes in Net Position 108
Fund Balances of Governmental Funds110
Changes in Fund Balances of Governmental Funds112
Revenue Capacity:
Assessed Value, Actual Value and Tax Capacity of Taxable Property114
Direct and Overlapping Tax Capacity Rates115
Principal Property Tax Payers 116
Property Tax Levies and Collections117
Debt Capacity:
Ratios of Outstanding Debt by Type118
Ratios of General Bonded Debt Outstanding119
Direct and Overlapping Governmental Activities Debt120
Legal Debt Margin Information 121
Pledged Revenue Coverage 122
Demographic and Economic Information:
Demographic and Economic Statistics123
Principal Employers 124
Operating Information:
Full-Time Equivalent City Government Employees by Function125
Operating Indicators by Function126
Capital Asset Statistics by Function127
This page left blank intentionally.
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, 2013
Executive Director/CEO
4
CITY OF EDINA, MINNESOTA
ORGANIZATION
December 31, 2014
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:
Eric Roggeman Appointed
City Clerk:
Debra Mangen Appointed
5
CI
T
Y
O
F
E
D
I
N
A
,
M
I
N
N
E
S
O
T
A
Re
s
i
d
e
n
t
s
Cit
y
Co
u
n
c
i
l
Ci
t
y
Ma
n
a
g
e
r
Ad
m
i
n
i
s
t
r
a
t
i
o
n
Ci
t
y
Cl
e
r
k
Li
q
u
o
r
St
o
r
e
Op
e
r
a
t
i
o
n
s
Ec
o
n
o
m
i
c
De
v
e
l
o
p
m
e
n
t
Co
m
m
u
n
i
c
a
t
i
o
n
s
& Te
c
h
n
o
l
o
g
y
In
f
o
r
m
a
t
i
o
n
Te
c
h
n
o
l
o
g
y
Hu
m
a
n
Re
s
o
u
r
c
e
s
Fin
a
n
c
e
Po
l
i
c
e
Pa
t
r
o
l
In
v
e
s
t
i
g
a
t
i
o
n
s
Ci
v
i
l
i
a
n
Se
r
v
i
c
e
s
Co
m
m
u
n
i
t
y
He
a
l
t
h
Fi
r
e
Fi
r
e
& Re
s
c
u
e
Bu
i
l
d
i
n
g
In
s
p
e
c
t
i
o
n
s
Pu
b
l
i
c
Wo
r
k
s
St
r
e
e
t
s
Ma
i
n
t
e
n
a
n
c
e
Ut
i
l
i
t
y
Op
e
r
a
t
i
o
n
s
Eq
u
i
p
m
e
n
t
Op
e
r
a
t
i
o
n
s
El
e
c
t
r
i
c
a
l
/
H
V
A
C
Pr
o
p
e
r
t
y
Ma
n
a
g
e
m
e
n
t
Pa
r
k
s
Ma
i
n
t
e
n
a
n
c
e
En
g
i
n
e
e
r
i
n
g
De
s
i
g
n
& Pr
o
j
e
c
t
Ma
n
a
g
e
m
e
n
t
En
v
i
r
o
n
m
e
n
t
a
l
Se
r
v
i
c
e
s
Parks &
Re
c
r
e
a
t
i
o
n
Enterprise FacilitiesCommunity Development Planning Assessing
6
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
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, 2014, and the related notes to the fmancial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these 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 financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the City's preparation
and fair presentation of the 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.mmki.com
OPINIONS
In our opinion, the fmancial statements referred to on the previous page present fairly, in all material
respects, the respective fmancial 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, 2014, and the
respective changes in financial position and, where applicable, cash flows thereof, for the year then
ended, in accordance with accounting principles generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, the Budgetary Comparison Information, and the Schedule of Funding Progress
for the Other Post-Employment Benefits Plan, as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of fonning opinions on the financial statements that collectively
comprise the City's basic financial statements. The introductory section, the combining and individual
fund fmancial 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 fmancial 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 fmancial statements or to the basic fmancial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining and individual fund financial statements and schedules are
fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The introductory section, supplementary fmancial information, and statistical section have not been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
accordingly, we do not express an opinion or provide any assurance on them.
(continued)
8
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2015 on
our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control over financial reporting and
compliance.
JW41147,1110k-litre, 4AAA.044,a."24-, P. A
Minneapolis, Minnesota
June 1,2015
9
This page left blank intentionally.
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, 2014. 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
$232,892,436 (net position). Of this amount, $52,492,631 (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 $11,912,347 from current year operations. $4,606,010
of this increase is due to special assessment revenues, which help support our road
reconstruction program. Also, $3,797,402 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 $50,036,779, an increase of $4,744,644 in comparison with the prior year.
At the end of the current fiscal year, unassigned fund balance for the general fund was
$11,429,444 or 34% of total general fund expenditures.
The City’s total bonded debt increased by $26,498,625 during the current fiscal year, from
$90,612,345 to $117,110,970. The City issued new debt during the year consisting of $5,680,000
general obligation bonds to finance various utility infrastructure improvement projects,
$12,720,000 general obligation bonds to refund old debt, and $16,155,000 public project revenue
bonds to finance the new sports dome, outdoor ice rink at the arena, and improvements to
Pamela Park.
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 four 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 $232,892,436 at the close of the most
recent fiscal year.
The largest portion of the City's net position ($161,511,786 or 69%) reflects its investment in capital
assets (e.g. land, buildings, machinery, and equipment) less any related debt used to acquire those
assets that is still outstanding. The City uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the City's investment in its
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Management’s Discussion and Analysis (Continued)
14
City of Edina’s Net Position
2014 2013 2014 2013 2014 2013
Current and
other assets74,584,744$ 66,664,337$ 34,082,921$ 21,429,233$ 108,667,665$ 88,093,570$
Capital assets148,079,729 137,809,952 114,997,600 102,514,577 263,077,329 240,324,529
Total assets222,664,473$ 204,474,289$ 149,080,521$ 123,943,810$ 371,744,994$ 328,418,099$
Long-term liabilities
outstanding67,962,254$ 56,200,689$ 33,901,645$ 32,914,580$ 101,863,899$ 89,115,269$
Other liabilities19,408,776 10,898,734 17,579,883 7,424,007 36,988,659 18,322,741
Total liabilities87,371,030$ 67,099,423$ 51,481,528$ 40,338,587$ 138,852,558$ 107,438,010$
Net position:
Net investment in
capital assets85,708,114$ 83,842,970$ 75,803,672$ 66,126,387$ 161,511,786$ 149,969,357$
Restricted18,268,724 20,289,579 619,295 611,377 18,888,019 20,900,956
Unrestricted31,316,605 33,242,317 21,176,026 16,867,459 52,492,631 50,109,776
Total net position135,293,443$ 137,374,866$ 97,598,993$ 83,605,223$ 232,892,436$ 220,980,089$
Governmental Activities Business-Type Activities Totals
An additional portion of the City’s net position ($18,888,019) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position
($52,492,631) 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 $2,382,855 in unrestricted net position, largely due to positive
operating results in the Utility fund and a large new assessment for the Lake Edina neighborhood
reconstruction project.
Management’s Discussion and Analysis (Continued)
15
As shown below, the City’s net position increased by $11,912,347 during the current fiscal year.
Factors contributing to this change are discussed in the next two sections.
City of Edina's Changes in Net Position
2014 2013 2014 2013 2014 2013
Revenues:
Program revenues:
Charges for services10,592,168$ 9,517,662$ 39,889,554$ 39,751,184$ 50,481,722$ 49,268,846$
Operating grants and
contributions1,578,538 2,283,007 428,416 516,242 2,006,954 2,799,249
Capital grants and
contributions8,244,695 6,372,735 - - 8,244,695 6,372,735
General revenues:
Property taxes27,062,224 26,894,161 - - 27,062,224 26,894,161
Other taxes7,119,402 5,873,905 - - 7,119,402 5,873,905
Gain on disposal
of assets29,037 16,654 - 14,587 29,037 31,241
Insurance recovery- 816,654 - - - 816,654
Unrestricted investment
earnings440,051 (96,390) 191,974 (77,848) 632,025 (174,238)
Total revenues55,066,115 51,678,388 40,509,944 40,204,165 95,576,059 91,882,553
Expenses:
General government8,522,319 8,256,261 - - 8,522,319 8,256,261
Public safety18,145,498 17,117,693 - - 18,145,498 17,117,693
Public works15,553,852 11,502,250 - - 15,553,852 11,502,250
Parks3,330,781 6,132,709 - - 3,330,781 6,132,709
Interest on long-term debt1,989,863 2,024,749 - - 1,989,863 2,024,749
Utilities- - 14,207,197 13,748,186 14,207,197 13,748,186
Liquor- - 12,393,218 12,261,413 12,393,218 12,261,413
Aquatic center- - 827,485 822,932 827,485 822,932
Golf course- - 3,342,544 3,199,815 3,342,544 3,199,815
Arena- - 2,375,173 2,272,510 2,375,173 2,272,510
Community activity
centers- - 2,975,782 2,967,115 2,975,782 2,967,115
Total expenses 47,542,313 45,033,662 36,121,399 35,271,971 83,663,712 80,305,633
Increase in net position
before transfers7,523,802 6,644,726 4,388,545 4,935,194 11,912,347 11,579,920
Transfers(9,605,225) 133,907 9,605,225 (133,907) - -
Change in net position(2,081,423) 6,778,633 13,993,770 4,801,287 11,912,347 11,579,920
Net position - January 1137,374,866 130,596,233 83,605,223 78,803,936 220,980,089 209,400,169
Net position - December 31135,293,443$ 137,374,866$ 97,598,993$ 83,605,223$ 232,892,436$ 220,980,089$
Governmental Activities Business-type Activities Totals
Management’s Discussion and Analysis (Continued)
16
Governmental Activities
Governmental activities decreased the City's net position by $2,081,423 including transfers of
$9,605,225. The large net transfer made to business-type activities is a result of the construction fund
transferring $2,093,836 and $6,409,391, respectively, to the arena and sports dome funds to
reimburse for debt proceeds initially received in the construction fund for capital projects at those
facilities. In addition, the general fund transferred $1,100,000 of the 2013 unassigned fund balance to
the golf course to assist in stabilizing the fund deficit. Before transfers the governmental activities
increased the City’s net position by $7,523,802 accounting for 63% of the total growth in net position.
Key elements of the increase before transfers are as follows:
Charges for services increased by $1,074,506, or 11% in 2014. This is primarily a result of
increased building and permit revenue due to continuing residential and commercial
redevelopment growth throughout the City.
Tax increment collections increased by $1,070,767, or 27% in 2014. This is a result of
increased collections in the Southdale 2 Tax Increment Financing District for the purpose of
funding ongoing redevelopment in this district.
Capital grants and contributions increased by $1,871,960, or 29% in 2014. This is a result of
increased federal aid received for various infrastructure projects, most notably the France
Avenue pedestrian corridor project.
Public works expenses increased by $4,051,602, while parks expenses decreased by
$2,801,928 in 2014 compared to 2013. These changes by function are due to the City
completing a major departmental reorganization in 2014, moving parks maintenance activities
from parks to public works.
Below are specific graphs which provide comparisons of the governmental activities revenues and
expenses:
Charges for services19%
Operating grants and contributions3%
Capital grants and contributions15%
Property taxes49%
Other taxes13%
Other1%
Revenues by Source -Governmental Activities
-
5
10
15
20
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
As previously noted, business-type activities received net transfers of $9,605,225 from governmental
activities during 2014, providing reimbursement for capital projects at the arena and sports dome and
assistance in stabilizing fund balance at the golf course. Business-type activities increased net
position by $4,388,545 before transfers, accounting for 37% of the City's growth in net position. Key
elements of the current year increase before transfers are as follows:
The utility fund had income before transfers of $3,797,402 for 2014. This additional revenue
is used to invest in new and rebuilt utility infrastructure according to the City’s CIP and utility
rate study.
Charges for
services
99%
Operating grants
and
contributions
1%
Revenues by Source -Business-type Activities
-
2
4
6
8
10
12
14
16
18
UtilitiesLiquorAquatic
center
Golf courseArenaCommunity
activity
centers
Millions
Expenses and Program Revenues -Business-type
Activities
expenses
program revenue
Management’s Discussion and Analysis (Continued)
18
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government’s net resources available for spending at the end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending fund
balances of $50,036,779, an increase of $4,744,644 in comparison with the prior year. Approximately
23% of this total amount ($11,429,444) constitutes unassigned fund balance. The remainder of the
fund balance is 1) nonspendable due to prepaid items ($240,291), 2) restricted by external creditors,
grantors, laws or regulations ($29,754,105), or 3) assigned by internal constraints ($8,612,939).
The general fund is the chief operating fund of the City. At the end of the current fiscal year,
unassigned fund balance of the general fund was $11,429,444. As a measure of the general fund’s
liquidity, unassigned fund balance represents 34% of total general fund expenditures.
The fund balance of the City’s general fund decreased by $337,898 during the current fiscal year. Key
factors in this decrease are as follows:
Total general fund revenues were $2,190,783 over budget, including higher than expected
building permit activity. General fund license and permit revenues increased by 8.9% in the
current fiscal year after a 31.8% and 16.3% increase in 2013 and 2012, respectively.
Total general fund expenditures were $491,387 under budget. The majority of this occurred in
the police department as a result of turnover and various positions being vacant throughout
the year.
The liquor fund did not transfer $765,100 of profits to the general fund as planned in the initial
2014 budget, due to increased competition in the market resulting in decreased profits.
Transfers out of the general fund totaled $2,254,968 with the majority being related to the
2013 unassigned fund balance transfer that was made to fund various constructions projects,
equipment replacement, and assist in stabilizing the golf course fund deficit.
The Housing and Redevelopment Authority fund balance decreased by $3,565,643 in the current
fiscal year due to spending on projects at 50th and France and along France Avenue.
The debt service fund has a total fund balance of $12,678,291, all of which is restricted for the
payment of debt service. The net increase in fund balance during the current year in the debt service
fund was $6,431,522. Fund balance increased during the year as a result of debt proceeds held for
multiple refunding’s that take place in February 2015.
The construction fund balance increased by $1,969,955 in 2014 due to new debt that was issued to
help finance the new sports dome, outdoor ice rink at the arena, and improvements to Pamela Park.
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 $16,003,565. The total
growth in net position from current year operations was $3,697,402. Operating revenues in the
utilities fund decreased by 1.6% while expenses increased by 4.3% in 2014. Revenues decreased
due to an abundance of rain in 2014 that resulted in flooding and less water consumed for irrigation.
Expenses increased as a result of higher depreciation expenses related to infrastructure projects
completed in recent years. The City invested $5,662,939 in utility fund capital assets during 2014.
Unrestricted net position of the liquor fund at the end of the year amounted to $1,563,252. Total net
position increased by $110,606. The liquor fund continues to transfer profits back into other City
funds, including the construction, golf course, arena and art center funds. The liquor fund made
transfers totaling $1,035,000 to other funds during 2014. The majority of this amount ($485,000) was
transferred to the golf course fund according to the budget.
Unrestricted net position of the aquatic center fund at the end of the year amounted to $462,392.
Aquatic center revenues decreased by 1.0% from 2013 due to less favorable weather for the aquatic
center in 2014. The aquatic center remains profitable.
Unrestricted net position of the golf course fund at the end of the year amounted to $607,411 an
increase of $1,969,486 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. The large increase in 2014 is the
result of $1,699,021 in transfers received from the general fund 2013 unassigned fund balance along
with a transfer from the liquor fund; both with the goal of stabilizing fund balance.
Unrestricted net position of the arena fund at the end of the year amounted to a deficit of ($41,412),
an increase of $180,143 from the prior year. The increase in 2014 is the result of the completed
remodel in 2013 which increased revenues by 7.7% and 33.8% in 2014 and 2013, respectively,
mostly in building rental and concession sales.
General Fund Budgetary Highlights
During the year there was a $2,815,068 increase in appropriations between the original and final
amended budget. The majority of the increase was a transfer to the construction and golf course
funds of unassigned general fund balance according to the City’s fund balance policy.
During the year, revenues were $2,190,783 more than budget, as the continued commercial and
residential redevelopment of the City increased our licenses and permits and parkland dedication
revenues, which exceeded budget by $1,970,406.
During the year, expenses were $491,387 under budget due to turnover of tenured employees in
various departments; most notably police, resulting in numerous positions being vacant throughout
the year.
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, 2014, amounted to $263,077,329 (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,
equipment, and construction in progress. The total increase in the City’s investment in capital assets
for the current fiscal year was 9.5% (a 7.5% increase for governmental activities and a 12.2%
increase for business-type activities).
Major capital asset events during the current fiscal year included the following:
The City continued construction on the sports dome; construction in progress as of the close
of the fiscal year reached $8,058,659.
The City continued construction on the outdoor rink at the arena, construction in progress as
of the close of the fiscal year reached $2,842,504.
A variety of street construction, sidewalk and park projects; construction in progress as of the
close of the fiscal year reached $16,623,018.
The City purchased a property for $1,553,288 using tax increments previously collected from
Centennial Tax Increment Financing District.
A variety of utility infrastructure improvements, including watermain, sanitary and storm
sewer, construction in progress as of the close of the fiscal year reached $5,416,470.
The City completed the water meter replacement project; total construction cost was
$3,467,875.
City of Edina’s Capital Assets
(Net of Depreciation)
2014 2013 2014 2013 2014 2013
Land and land
improvements27,104,500$ 26,204,303$ 4,645,595$ 4,984,372$ 31,750,095$ 31,188,675$
Easements111,000 111,000 - - 111,000 111,000
Buildings and structures45,431,238 47,247,194 14,234,412 11,009,519 59,665,650 58,256,713
Machinery and equipment6,256,555 6,487,848 5,906,900 2,657,310 12,163,455 9,145,158
Infrastructure45,685,016 43,539,660 73,845,503 69,364,146 119,530,519 112,903,806
Parks6,868,402 7,472,349 - - 6,868,402 7,472,349
Construction in progress16,623,018 6,747,598 16,365,190 14,499,230 32,988,208 21,246,828
Total148,079,729$ 137,809,952$ 114,997,600$ 102,514,577$ 263,077,329$ 240,324,529$
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 $117,110,970, an increase of $26,498,625 from 2013. This increase resulted from
$34,555,000 in new debt, offset by payment of previously scheduled principal payments.
$30,200,000 is for general obligation improvement debt that is supported by property tax levies and
special assessments. This amount decreased from 2013 due to previously scheduled principal
payments exceeding issued debt that will ultimately decrease debt in this category via refunding to be
completed February 2015.
$20,880,000 is for permanent improvement revolving (PIR) bonds, which finance the City’s special
assessment program. This amount increased from 2013 due to regularly scheduled principal
payments on outstanding issues offset by issued debt of $4,075,000 to be used for a refunding to be
completed February 2015.
Management’s Discussion and Analysis (Continued)
21
Also outstanding is $21,560,000 public project revenue bonds which financed two gymnasiums and
the new public works facility. This amount increased in 2014 due to a new issuance in 2014 for
$16,155,000 to finance the new sports dome, outdoor ice rink at the arena, and improvements to
Pamela Park.
There is a total of $44,420,000 in revenue bonds for improvements to the enterprise funds. This
amount increased $9,260,000 during the year due to $13,220,000 in issued debt offset by regularly
scheduled principal payments on outstanding issues. $5,680,000 of the issued debt is to finance
various utility infrastructure improvement projects with the remaining issuance reducing debt in this
category via a refunding to be completed February 2015.
City of Edina’s Outstanding Debt
2014 2013 2014 2013 2014 2013
General obligation bonds30,200,000$ 31,390,000$ -$ -$ 30,200,000$ 31,390,000$
Public improvement bonds20,880,000 18,360,000 - - 20,880,000 18,360,000
Public project revenue bonds21,560,000 5,640,000 - - 21,560,000 5,640,000
Edina emerald energy program bonds50,970 62,345 - - 50,970 62,345
Revenue bonds- - 44,420,000 35,160,000 44,420,000 35,160,000
Total72,690,970$ 55,452,345$ 44,420,000$ 35,160,000$ 117,110,970$ 90,612,345$
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 $267,350,840. Only $51,760,000 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 2014 was 3.10%, 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 for several years through 2008, but values declined from 2009-
2012 and are back on the rise in 2013-2014. Estimated market value of real estate increased 8.5%
for taxes payable in 2014.
-8.0%-6.0%-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%
2005200620072008200920102011201220132014
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 9.1% for taxes payable in 2014, and
remained positive for the second consecutive year.
All of these factors above were considered in preparing the City’s budget for the 2015 fiscal year. The
City’s adopted 2015 budget includes a property tax levy of $29,700,010 for all funds, an increase of
8.2% from the 2014 levy with approximately half of this increase resulting from the issuance of debt to
finance the new sports dome, outdoor ice rink at the arena, and improvements to Pamela Park.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional financial information should be addressed to the Office of the Finance
Director, 4801 West 50th Street, Edina, Minnesota 55424. The City’s Comprehensive Annual
Financial Report can also be found on the internet at www.cityofedina.com.
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2014
GovernmentalBusiness-type
Activities Activities Total
Assets:
Current assets:
Cash and investments43,073,088$ 18,097,587$ 61,170,675$
Restricted cash and investments11,485,381 9,692,860 21,178,241
Accrued interest 65,913 31,043 96,956
Accounts receivable, net1,099,285 4,030,064 5,129,349
Special assessments receivable15,725,506 461,278 16,186,784
Due from other governments1,310,815 2,886 1,313,701
Prepaid items240,291 463,831 704,122
Inventory - 1,303,372 1,303,372
Total current assets73,000,279 34,082,921 107,083,200
Noncurrent assets:
Investment in joint powers agreement1,584,465 - 1,584,465
Nondepreciable capital assets 36,924,427 17,454,155 54,378,582
Depreciable capital assets (net)111,155,302 97,543,445 208,698,747
Total noncurrent assets149,664,194 114,997,600 264,661,794
Total assets222,664,473 149,080,521 371,744,994
Liabilities:
Current liabilities:
Accounts payable 3,355,934 478,417 3,834,351
Salaries payable1,391,831 370,275 1,762,106
Accrued interest payable956,711 481,552 1,438,263
Contracts payable1,020,886 3,005,429 4,026,315
Due to other governments26,448 164,775 191,223
Deposits payable 1,361,924 5,000 1,366,924
Unearned revenue4,835 94,128 98,963
Compensated absences payable1,540,207 330,307 1,870,514
Bonds payable 9,750,000 12,650,000 22,400,000
Total current liabilities19,408,776 17,579,883 36,988,659
Noncurrent liabilities:
Net OPEB obligation1,544,947 174,825 1,719,772
Compensated absences payable2,310,311 495,461 2,805,772
Bonds payable, net 64,106,996 33,231,359 97,338,355
Total noncurrent liabilities67,962,254 33,901,645 101,863,899
Total liabilities87,371,030 51,481,528 138,852,558
Net position:
Net investment in capital assets85,708,114 75,803,672 161,511,786
Restricted for tax increments7,929,998 - 7,929,998
Restricted for debt service6,972,816 619,295 7,592,111
Restricted for pedestrian and cyclist improvements729,496 - 729,496
Restricted for energy efficiency projects818,926 - 818,926
Restricted for parkland dedication757,673 - 757,673
Restricted for police special revenue744,008 - 744,008
Restricted for braemar golf donations310,223 - 310,223
Restricted for arts and culture donations5,584 - 5,584
Unrestricted31,316,605 21,176,026 52,492,631
Total net position135,293,443$ 97,598,993$ 232,892,436$
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, 2014
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government:
Governmental activities:
General government8,522,319$ 1,529,555$ 224,184$ -$
Public safety18,145,498 8,102,352 1,131,628 -
Public works15,553,852 469,284 208,868 7,484,622
Parks3,330,781 490,977 13,858 760,073
Interest on long-term debt1,989,863 - - -
Total government activities47,542,313 10,592,168 1,578,538 8,244,695
Business-type activities:
Utilities14,207,197 17,550,802 333,490 -
Liquor12,393,218 13,515,168 3,000 -
Aquatic center827,485 918,412 - -
Golf course3,342,544 3,229,348 17,850 -
Arena2,375,173 2,092,567 - -
Community activity centers2,975,782 2,583,257 74,076 -
Total business-type activities36,121,399 39,889,554 428,416 -
Total primary government83,663,712$ 50,481,722$ 2,006,954$ 8,244,695$
The accompanying notes are an integral part of these financial statements.
Program Revenues
24
GovernmentalBusiness-type
ActivitiesActivitiesTotal
(6,768,580)$ -$ (6,768,580)$
(8,911,518) - (8,911,518)
(7,391,078) - (7,391,078)
(2,065,873) - (2,065,873)
(1,989,863) - (1,989,863)
(27,126,912) - (27,126,912)
- 3,677,095 3,677,095
- 1,124,950 1,124,950
- 90,927 90,927
- (95,346) (95,346)
- (282,606) (282,606)
- (318,449) (318,449)
- 4,196,571 4,196,571
(27,126,912) 4,196,571 (22,930,341)
General revenues:
Property taxes27,062,224 - 27,062,224
Tax increment collections5,052,705 - 5,052,705
Franchise taxes2,055,396 - 2,055,396
Lodging taxes11,301 - 11,301
Unrestricted investment earnings440,051 191,974 632,025
Gain on disposal of capital assets29,037 - 29,037
Transfers(9,605,225) 9,605,225 -
Total general revenues and transfers25,045,489 9,797,199 34,842,688
Change in net position(2,081,423) 13,993,770 11,912,347
Net position - beginning137,374,866 83,605,223 220,980,089
Net position - ending135,293,443$ 97,598,993$ 232,892,436$
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, 2014
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityService ConstructionFundsFunds
Assets
Cash and Investments16,722,406$ 9,021,855$ 6,927,400$ 8,070,050$ 2,331,377$ 43,073,088$
Restricted cash and
investments- - 5,705,475 5,779,906 - 11,485,381
Accrued interest 21,554 25,015 - 15,804 3,540 65,913
Accounts receivable541,361 - - 270,339 287,585 1,099,285
Special assessments
receivable- - 15,234,873 490,633 - 15,725,506
Due from other governments502,473 10,873 55,538 712,585 29,346 1,310,815
Prepaid items240,291 - - - - 240,291
Total assets 18,028,085$ 9,057,743$ 27,923,286$ 15,339,317$ 2,651,848$ 73,000,279$
Liabilities
Accounts payable1,201,038$ 1,121,774$ -$ 1,006,618$ 26,504$ 3,355,934$
Salaries payable1,378,767 5,971 - 7,093 - 1,391,831
Contracts payable - - - 1,003,779 17,107 1,020,886
Due to other governments26,448 - - - - 26,448
Deposits payable1,361,924 - - - - 1,361,924
Unearned revenue4,835 - - - - 4,835
Total liabilities3,973,012 1,127,745 - 2,017,490 43,611 7,161,858
Deferred inflows of resources
Unavailable revenue - taxes61,336 - 10,122 4,678 - 76,136
Unavailable revenue -
special assessments- - 15,234,873 490,633 - 15,725,506
Total deferred inflows of
resources61,336 - 15,244,995 495,311 - 15,801,642
Fund balance:
Nonspendable240,291 - - - - 240,291
Restricted757,673 7,929,998 12,678,291 5,779,906 2,608,237 29,754,105
Assigned1,566,329 - - 7,046,610 - 8,612,939
Unassigned11,429,444 - - - - 11,429,444
Total fund balance13,993,737 7,929,998 12,678,291 12,826,516 2,608,237 50,036,779
Total liabilities, deferred
inflows of resources,
and fund balances18,028,085$ 9,057,743$ 27,923,286$ 15,339,317$ 2,651,848$ 73,000,279$
Fund balance reported above 50,036,779$
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.148,079,729
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.15,801,642
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore
are not reported in the funds.(80,209,172)
Net position of governmental activities (page 23)135,293,443$
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, 2014
Housing &NonmajorTotal
RedevelopmentDebtGovernmentalGovernmental
GeneralAuthorityServiceConstructionFundsFunds
Revenues:
General property taxes22,147,135$ -$ 3,866,611$ 974,747$ -$ 26,988,493$
Tax increment collections- 5,052,705 - - - 5,052,705
Franchise taxes808,738 - - 102,491 1,144,167 2,055,396
Lodging tax11,301 - - - - 11,301
Special assessments- - 2,870,102 1,735,908 - 4,606,010
License and permits4,490,993 - - 92,190 - 4,583,183
Intergovernmental1,197,284 - - 2,673,563 90,662 3,961,509
Charges for services4,236,442 - - 34,278 - 4,270,720
Fines and forfeitures993,954 - - - 169,953 1,163,907
Investment income144,127 158,945 11,408 106,630 18,941 440,051
Rental of property546,874 - - - - 546,874
Parkland dedication757,278 - - - - 757,278
Other revenues22,291 - - 51,846 4,638 78,775
Total revenues35,356,417 5,211,650 6,748,121 5,771,653 1,428,361 54,516,202
Expenditures:
Current:
General government6,024,288 1,558,360 - 24,478 18,700 7,625,826
Public safety16,462,293 - - 48,429 137,099 16,647,821
Public works9,669,174 - - 435,551 96,610 10,201,335
Parks1,283,592 - - 9,964 48,328 1,341,884
Capital outlay:
General government- 1,566,533 - 392,057 - 1,958,590
Public safety- - - 845,796 78,352 924,148
Public works- 5,652,400 - 8,268,264 818,213 14,738,877
Parks- - - 2,257,171 4,358 2,261,529
Debt service:
Bond principal - - 4,096,375 - - 4,096,375
Interest and fiscal charges- - 1,923,647 - - 1,923,647
Total expenditures33,439,347 8,777,293 6,020,022 12,281,710 1,201,660 61,720,032
Revenues over
(under) expenditures1,917,070 (3,565,643) 728,099 (6,510,057) 226,701 (7,203,830)
Other financing sources (uses):
Transfers in- - - 1,384,968 20,007 1,404,975
Transfers out(2,254,968) - - (8,755,232) - (11,010,200)
Sale of capital assets- - - 70,603 - 70,603
Bonds issued- - 270,599 15,884,401 - 16,155,000
Refunding bonds issued- - 5,180,000 - - 5,180,000
Premium (discounts) on
bonds issued- - 252,824 (104,728) - 148,096
Total other financing
sources (uses)(2,254,968) - 5,703,423 8,480,012 20,007 11,948,474
Net increase (decrease)
in fund balance(337,898) (3,565,643) 6,431,522 1,969,955 246,708 4,744,644
Fund balance - January 114,331,635 11,495,641 6,246,769 10,856,561 2,361,529 45,292,135
Fund balance - December 3113,993,737$ 7,929,998$ 12,678,291$ 12,826,516$ 2,608,237$ 50,036,779$
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, 2014
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)4,744,644$
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.10,311,343
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.(41,566)
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.520,876
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.(17,386,721)
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.(229,999)
Change in net position of governmental activities (page 25)(2,081,423)$
The accompanying notes are an integral part of these financial statements.
29
CITY OF EDINA, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2014
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Assets:
Current assets:
Cash and investments12,252,960$ 1,068,311$ 1,006,839$ 905,645$ 1,092$ 2,862,740$ 18,097,587$
Restricted cash and investments9,692,860 - - - - - 9,692,860
Interest receivable19,849 3,289 2,132 650 - 5,123 31,043
Accounts receivable, net3,738,301 - - 40 236,156 55,567 4,030,064
Special assessments receivable461,278 - - - - - 461,278
Due from other funds- - - - - 22,718 22,718
Due from other governments2,886 - - - - - 2,886
Prepaid expenses385,231 - 78,600 - - - 463,831
Inventory7,294 1,193,054 - 94,764 - 8,260 1,303,372
Total current assets26,560,659 2,264,654 1,087,571 1,001,099 237,248 2,954,408 34,105,639
Noncurrent assets:
Net capital assets84,022,766 1,672,078 2,097,520 7,153,525 10,290,484 9,761,227 114,997,600
Total assets110,583,425 3,936,732 3,185,091 8,154,624 10,527,732 12,715,635 149,103,239
Liabilities:
Current liabilities:
Accounts payable159,992 128,791 2,010 29,139 86,434 72,051 478,417
Salaries payable105,704 86,495 - 42,625 52,818 82,633 370,275
Accrued interest payable405,821 - 3,564 14,569 57,598 - 481,552
Contracts payable509,222 46,439 19,454 22,820 735,882 1,671,612 3,005,429
Due to other funds- - - - - 22,718 22,718
Due to other governments5,317 135,666 310 3,259 9,787 10,436 164,775
Deposits payable- - - 5,000 - - 5,000
Unearned revenue- 10,009 - 73,970 314 9,835 94,128
Compensated absences payable 55,654 123,696 - 73,053 20,754 57,150 330,307
Bonds payable - current12,300,000 - 75,000 50,000 225,000 - 12,650,000
Total current liabilities13,541,710 531,096 100,338 314,435 1,188,587 1,926,435 17,602,601
Noncurrent liabilities:
Net OPEB obligation48,264 31,201 - 42,494 19,825 33,041 174,825
Compensated absences payable83,482 185,544 - 109,579 31,130 85,726 495,461
Bonds payable, net of
unamortized discounts and premiums27,332,777 - 166,079 1,087,442 4,645,061 - 33,231,359
Total noncurrent liabilities27,464,523 216,745 166,079 1,239,515 4,696,016 118,767 33,901,645
Total liabilities41,006,233 747,841 266,417 1,553,950 5,884,603 2,045,202 51,504,246
Net position:
Net investment in capital assets53,573,627 1,625,639 1,836,987 5,993,263 4,684,541 8,089,615 75,803,672
Restricted for debt service- - 619,295 - - - 619,295
Unrestricted16,003,565 1,563,252 462,392 607,411 (41,412) 2,580,818 21,176,026
Total net position69,577,192$ 3,188,891$ 2,918,674$ 6,600,674$ 4,643,129$ 10,670,433$ 97,598,993$
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, 2014
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Operating revenues:
Sales - liquor-$ 13,276,929$ -$ 177,915$ -$ -$ 13,454,844$
Sales - retail- 238,239 4,883 202,339 30,768 42,403 518,632
Sales - utilities16,953,915 - - - - - 16,953,915
Sales - concessions- - 108,195 201,507 242,309 145,983 697,994
Memberships- - 399,218 61,280 2,010 88,128 550,636
Admissions- - 361,156 338,148 103,935 684,965 1,488,204
Building rental- - 44,960 65,511 1,588,579 356,122 2,055,172
Rental of equipment- - - 348,762 3,709 156,336 508,807
Greens fees- - - 1,571,900 - 196,147 1,768,047
Other fees594,968 - - 261,986 120,375 913,173 1,890,502
Total operating revenues17,548,883 13,515,168 918,412 3,229,348 2,091,685 2,583,257 39,886,753
Operating expenses:
Cost of sales and services- 9,936,468 31,873 299,949 93,323 78,586 10,440,199
Personal services1,698,648 1,433,920 315,794 1,468,190 748,750 1,642,579 7,307,881
Contractual services6,603,552 527,025 148,971 527,891 746,959 563,701 9,118,099
Commodities820,879 180,576 56,649 378,257 103,107 321,109 1,860,577
Central Services678,743 220,594 25,857 123,729 55,061 131,210 1,235,194
Depreciation3,642,118 88,269 241,671 502,528 489,471 234,513 5,198,570
Total operating expenses13,443,940 12,386,852 820,815 3,300,544 2,236,671 2,971,698 35,160,520
Operating income (loss)4,104,943 1,128,316 97,597 (71,196) (144,986) (388,441) 4,726,233
Nonoperating revenues (expenses):
Intergovernmental333,490 - - - - - 333,490
Investment income120,307 20,656 12,830 4,155 - 34,026 191,974
Donations- - - - - 13,200 13,200
Interest and fiscal charges(896,672) - (7,210) (42,832) (138,486) - (1,085,200)
Amortization of bond premiums
(discounts)133,415 - 540 883 (16) - 134,822
Gain (loss) on sale of capital assets- (6,366) - (51) - (4,084) (10,501)
Miscellaneous 1,919 3,000 - 17,850 882 60,876 84,527
Total nonoperating
revenues (expenses)(307,541) 17,290 6,160 (19,995) (137,620) 104,018 (337,688)
Income (loss) before transfers3,797,402 1,145,606 103,757 (91,191) (282,606) (284,423) 4,388,545
Transfers:
Transfers in- - - 1,699,021 2,351,395 6,689,809 10,740,225
Transfers out(100,000) (1,035,000) - - - - (1,135,000)
Total transfers (100,000) (1,035,000) - 1,699,021 2,351,395 6,689,809 9,605,225
Change in net position3,697,402 110,606 103,757 1,607,830 2,068,789 6,405,386 13,993,770
Net position - January 165,879,790 3,078,285 2,814,917 4,992,844 2,574,340 4,265,047 83,605,223
Net position - December 3169,577,192$ 3,188,891$ 2,918,674$ 6,600,674$ 4,643,129$ 10,670,433$ 97,598,993$
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, 2014
Nonmajor
AquaticGolfEnterprise
Utilities Liquor Center Course Arena Funds Total
Cash flows from operating activities:
Receipts from customers and users17,653,956$ 13,515,441$ 918,412$ 3,233,550$ 2,038,379$ 2,535,578$ 39,895,316$
Payment to suppliers(8,309,135) (11,184,979) (341,057) (1,344,632) (976,216) (1,094,859) (23,250,878)
Payment to employees(1,679,553) (1,393,417) (315,794) (1,558,200) (738,078) (1,638,541) (7,323,583)
Donations received- - - - - 13,200 13,200
Miscellaneous received1,919 3,000 - 17,850 882 60,876 84,527
Net cash provided by
(used in) operating activities7,667,187 940,045 261,561 348,568 324,967 (123,746) 9,418,582
Cash flows from noncapital financing activities:
State grant333,490 - - - - - 333,490
Transfer from other funds- - - 1,699,021 2,351,395 6,689,809 10,740,225
Transfer to other funds(100,000) (1,035,000) - - - - (1,135,000)
Proceeds from interfund borrowing442,991 491,452 1,000,000 - - 22,718 1,957,161
Payment of interfund borrowing- - (171,184) (1,588,910) (157,403) (39,664) (1,957,161)
Net cash provided by (used in)
noncapital financing activities676,481 (543,548) 828,816 110,111 2,193,992 6,672,863 9,938,715
Cash flows from capital and related financing activities:
Proceeds from capital debt13,801,287 - - - - - 13,801,287
Acquisition of capital assets(5,662,939) (346,161) (8,338) (919,246) (2,168,133) (6,574,350) (15,679,167)
Proceeds from disposals
of capital assets- - - 629,391 - - 629,391
Principal paid on bonds(3,670,000) - (80,000) - (210,000) - (3,960,000)
Interest and fiscal charges paid on bonds(884,075) - (8,200) (28,263) (139,734) - (1,060,272)
Net cash provided by (used in)
capital and related
financing activities3,584,273 (346,161) (96,538) (318,118) (2,517,867) (6,574,350) (6,268,761)
Cash flows from investing activities:
Interest received122,421 22,241 13,000 4,878 - 36,893 199,433
Net increase (decrease)
in cash and investments12,050,362 72,577 1,006,839 145,439 1,092 11,660 13,287,969
Cash and investments -
January 19,895,458 995,734 - 760,206 - 2,851,080 14,502,478
Cash and investments -
December 3121,945,820$ 1,068,311$ 1,006,839$ 905,645$ 1,092$ 2,862,740$ 27,790,447$
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, 2014
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) 4,104,943$ 1,128,316$ 97,597$ (71,196)$ (144,986)$ (388,441)$ 4,726,233$
Adjustments to reconcile operating income
(loss) to net cash flows provided by
(used in) operating activities:
Depreciation3,642,118 88,269 241,671 502,528 489,471 234,513 5,198,570
Donations- - - - - 13,200 13,200
Miscellaneous revenue (expense)1,919 3,000 - 17,850 882 60,876 84,527
Changes in assets and liabilities:
Decrease (increase) in receivables368,055 - - 9,033 (53,620) (47,739) 275,729
Decrease (increase) in
special assessments(152,378) - - - - - (152,378)
Decrease (increase) in
due from other governments1,612 - - - - - 1,612
Decrease (increase) in inventory5,198 (7,743) - (10,142) - 2,463 (10,224)
Decrease (increase) in
prepaid expenses(19,708) - (78,600) - - - (98,308)
Increase (decrease) in
accounts payable(185,037) (294,809) 629 (4,667) 20,450 (1,272) (464,706)
Increase (decrease) in
salaries payable33,766 10,276 - (8,874) 6,743 4,638 46,549
Increase (decrease) in
due to other governments(6,414) (17,764) 264 3 1,784 (1,444) (23,571)
Increase (decrease) in
deposits payable(112,216) - - 5,000 - - (107,216)
Increase (decrease) in
unearned revenue- 273 - (9,831) 314 60 (9,184)
Increase (decrease) in
net OPEB obligation4,160 3,850 - 4,604 2,197 5,068 19,879
Increase (decrease) in
compensated absences(18,831) 26,377 - (85,740) 1,732 (5,668) (82,130)
Total adjustments3,562,244 (188,271) 163,964 419,764 469,953 264,695 4,692,349
Net cash provided by
(used in) operating activities7,667,187$ 940,045$ 261,561$ 348,568$ 324,967$ (123,746)$ 9,418,582$
Noncash investing activities:
Increase (decrease) in
fair value of investments43,280 8,253 4,599 1,989 - 13,204 71,325
Noncash capital and related financing activities:
Acquisition of capital assets with
contracts payable(253,128) (46,439) (19,454) 572,622 (735,813) (1,549,716) (2,031,928)
Increase (decrease) in accounts receivable
related to insurance recoveries- - - (610,391) - - (610,391)
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, 2014
Agency Funds
Assets
Cash and investments 390,007$
Liabilities
Accounts payable 26,330$
Salaries payable 13,050
Due to other governmental units 350,627
Total liabilities 390,007$
The accompanying notes are an integral part of these financial statements.
34
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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 for two reasons. First, the HRA’s governing body is substantively the
same as the governing body of the City. Specifically, the HRA board consists of five
members, all of which are City Council members. Second, management of the City has
operational responsibility for the HRA. Specifically, sales of bonds or other obligations of
the HRA are approved by the City Council; the HRA follows the budget process for City
departments in accordance with City policy; the annual HRA budget is approved by City
Council; the HRA submits its plan for development and redevelopment to the City Council
for approval; lastly, the administrative structure and management practices and policies
of the HRA are approved by the City Council. The activity of the HRA is reported in the
Special Revenue Funds. Separate financial statements are not prepared for the HRA.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
36
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.
The statement of activities demonstrates the degree to which the direct expenses of a
given function or business-type activity are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or business-type activity.
Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or
business-type activity and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or business type activity.
Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide
financial statements. Major individual governmental funds and major individual enterprise
funds are reported as separate columns in the fund financial statements. Aggregated
information for the remaining nonmajor governmental and enterprise funds is reported in
a single column in the fund financial statements
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. The City’s only fiduciary fund type, agency funds, are
custodial in nature and do not have a measurement focus. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues
are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the City
considers all revenues, except reimbursement grants, to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences and claims and
judgments are recorded only when payment is due.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
37
Property taxes, special assessments, intergovernmental revenues, charges for services
and interest associated with the current fiscal period are all considered to be susceptible
to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other
revenue items are considered to be measurable and available only when cash is received
by the City.
The City reports the following major governmental funds:
The general fund is the government’s primary operating fund. It accounts for all
financial resources of the general government, except those required to be
accounted for in another fund.
The special revenue Housing and Redevelopment Authority fund is used to account
for revenues from several sources (property taxes, bond proceeds, investment
earnings, etc.) that are restricted for housing and redevelopment.
The debt service fund accounts for the payment of principal and interest on General
Obligation, Permanent Improvement Revolving, Public Project Revenue Bonds, and
Edina Emerald Energy Program 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).
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
38
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements. Exceptions to this general rule are transactions
that would be treated as revenues, expenditures or expenses if they involved external
organizations, such as buying goods and services or payments in lieu of taxes, are
similarly treated when they involve other funds of the City of Edina. Elimination of these
charges would distort the direct costs and program revenues reported for the various
functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions, and 3)
capital grants and contributions, including special assessments. Internally dedicated
resources are reported as general revenues rather than as program revenues. Likewise,
general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund’s principal ongoing operations.
The principal operating revenues of the utilities, liquor, aquatic center, golf course, arena,
art center, edinborough park, centennial lake, 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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
39
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.
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,
2014 are planned to be eliminated in 2015. Any residual balances outstanding between
the governmental activities and business-type activities are reported in the government-
wide financial statements as “internal balances.”
Property taxes and special assessments receivables have been reported net of estimated
uncollectible accounts. Because utility bills are considered liens on property, no
estimated uncollectible amounts are established. Uncollectible amounts are not material
for other receivables and have not been reported.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
40
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
41
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,
2014:
Enterprise
Funds
Debt
ServiceConstructionUtilities
Special assessments receivable
Delinquent$67,810$0$107,325
Deferred15,167,063490,633353,953
Total$15,234,873$490,633$461,278
Governmental Funds
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
42
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
43
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.
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.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
44
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.
N. NET POSITION
In the government-wide financial statements, net position represents the difference
between assets and liabilities. Net position is displayed in three components:
Net investment in capital assets - Consists of capital assets, net of accumulated
depreciation, reduced by the outstanding balance of any long-term debt used to build
or acquire the capital assets.
Restricted net position – Consists of net position restricted when there are
limitations imposed on their use through external restrictions imposed by creditors,
grantors, or laws or regulations of other governments.
Unrestricted net position – All other net position that do not meet the definition of
“restricted” or “net investment in capital assets.”
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
45
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.
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(72,690,970)$
Plus: issuance premium(1,594,192)
Less: issuance discount428,166
Accrued interest payable(956,711)
OPEB obligation(1,544,947)
Compensated absences(3,850,518)
Net adjustment to reduce fund balance - total
governmental funds to arrive at net position -
governmental activities(80,209,172)$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
46
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 outlay17,896,949$
Depreciation expense(7,585,606)
Net adjustment to increase net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental funds10,311,343$
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(1,105,000)$
Issuance of permanent improvement revolving bonds(4,075,000)
Issuance of public project revenue bonds(16,155,000)
Less discounts179,891
Plus premiums(327,987)
Principal repayments:
General obligation debt2,295,000
Permanent improvement revolving debt1,555,000
Public project revenue debt235,000
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 activities(17,386,721)$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
47
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(211,918)$
Compensated absences48,135
Accrued interest(209,409)
Amortization of bond discounts and premiums143,193
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities(229,999)$
Note 3 CASH AND INVESTMENTS
A. COMPONENTS OF CASH AND INVESTMENTS
Cash and investments at year-end consist of the following:
Deposits2,040,090$
Cash on hand19,960
Investments80,678,873
82,738,923$
Cash and investments are presented in the financial statements as follows:
Cash and investments - Statement of Net Position61,170,675$
Restricted cash and investments - Statement of Net Position21,178,241
Cash and investments - Statement of Fiduciary Net Position390,007
82,738,923$
The City had restricted investments of $21,178,241 as of December 31, 2014 that
represent unspent bond proceeds to be used for construction projects and debt
payments.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
48
B. DEPOSITS
In accordance with applicable Minnesota Statutes, the City maintains deposits at
depository banks authorized by the City Council, including checking accounts, savings
accounts and certificates of deposit.
The following is considered the most significant risk associated with deposits:
Custodial credit risk – In the case of deposits, this is the risk that in the event of
a bank failure, the City’s deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit
insurance, corporate surety bond, or collateral. The market value of collateral
pledged must equal 110% of the deposits not covered by federal deposit
insurance or corporate surety bonds. Authorized collateral includes treasury bills,
notes, and bonds; issues of U.S. government agencies; general obligations rated
“A” or better; revenue obligations rated “AA” or better; irrevocable standard
letters of credit issued by the Federal Home Loan Bank; and certificates of
deposit. Minnesota Statutes require that securities pledged as collateral be held
in safekeeping in a restricted account at the Federal Reserve Bank or in an
account at a trust department of a commercial bank or other financial institution
that is not owned or controlled by the financial institution furnishing the collateral.
The City’s investment policy does not contain further restrictions on the types of
collateral required.
At year-end, the carrying amount of the City’s deposits was $2,040,090 while the
balance on the bank records was $2,799,963. At December 31, 2014, all
deposits were fully covered by federal depository insurance, surety bonds, or by
collateral held by the City’s agent in the City’s name.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
49
C. INVESTMENTS
The City has the following investments at year end:
Rating Agency < 1 1 to 5 6 to 10 > 10 Total
U.S. TreasuriesAA+S&P65,109$ 74,525$ -$ 680,376$ 820,010$
SBA NotesAAAMdy's12,350 89,652 - - 102,002
SBA NotesN/RN/A- 50,209 8,091 12,036 70,336
U.S. AgenciesAA+S&P4,807,627 7,878,377 1,671,314 1,781,433 16,138,751
Bankers AcceptanceA1S&P5,014,687 - - - 5,014,687
Commerical PaperA1S&P6,000,000 - - - 6,000,000
Repurchase Agreement (commerical
paper underlying security)AAAS&P6,982,371 - - - 6,982,371
MunicipalsAAAS&P55,100 104,864 31,768 - 191,732
MunicipalsAA+S&P- 73,557 - - 73,557
MunicipalsAa2Mdy's- 117,879 - - 117,879
MunicipalsAAS&P505,435 127,747 - 1,645,000 2,278,182
MunicipalsAA-S&P251,748 329,183 - - 580,931
MunicipalsN/RN/A501,745 - - - 501,745
Negotiable CD'sN/RN/A9,308,745 4,146,312 - - 13,455,057
33,504,917$ 12,992,305$ 1,711,173$ 4,118,845$ 52,327,240
Money Market*AAAmS&P6,885,205
Money Market*AA+S&P124,168
4M Fund*N/RN/A21,342,260
Total investments 80,678,873$
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.
Investments are subject to various risks, the following of which are considered the most
significant:
Custodial credit risk – For investments, this is the risk that in the event of a
failure of the counterparty to an investment transaction (typically a broker-dealer)
the City would not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The City’s investment
policy specifically addresses custodial credit risk, requiring the City to limit its
exposure by purchasing insured or registered investments, or by the control of
who holds the securities.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
50
Credit risk – This is the risk that an issuer or other counterparty to an investment
will not fulfill its obligations. Minnesota Statutes limit the City’s investments to
direct obligations or obligations guaranteed by the United States or its agencies;
shares of investment companies registered under the Federal Investment
Company Act of 1940 that receive the highest credit rating, are rated in one of
the two highest rating categories by a statistical rating agency, and all of the
investments have a final maturity of thirteen months or less; general obligations
rated “AA” or better; general obligations of the Minnesota Housing Finance
Agency rated “A” or better; bankers’ acceptances of United States banks eligible
for purchase by the Federal Reserve System; commercial paper issued by
United States corporations or their Canadian subsidiaries, rated of the highest
quality category by at least two nationally recognized rating agencies, and
maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a
United States commercial bank, domestic branch of a foreign bank, or a United
States insurance company, and with a credit quality in one of the top two highest
categories; repurchase or reverse repurchase agreements and securities lending
agreements with financial institutions qualified as a “depository” by the
government entity, with banks that are members of the Federal Reserve System
with capitalization exceeding $10,000,000, that are a primary reporting dealer in
U.S. government securities to the Federal Reserve Bank of New York, or certain
Minnesota securities broker-dealers. The City’s investment policies specifically
address credit risk, further limiting the City’s exposure to credit risk by requiring
that all state and local government obligations to be rated “AA” or better by a
national rating agency.
Concentration risk – This is the risk associated with investing a significant
portion of the City’s investment (considered 5 percent or more) in the securities
of a single issuer, excluding U.S. guaranteed investments (such as Treasuries),
investment pools, and mutual funds. The City’s investment policies specifically
address the City’s desire to limit concentration risk, but do not set specific
guidelines for measurement of this risk. At year-end, the City’s investments
include 22.3% in bankers’ acceptances and commercial paper with U.S. Bank,
10.8% in securities issued by FNMA, and 5.1% in securities issued by FHLB.
Interest rate risk – This is the risk of potential variability in the fair value of fixed
rate investment resulting in changes in interest rates (the longer the period for
which an interest rate is fixed, the greater the risk). The City’s investment policies
specifically address the City’s desire to limit interest rate risk, but do not set
specific guidelines for measurement of this risk.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
51
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 is as follows:
BeginningEnding
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land18,637,121$ 1,553,288$ -$ 20,190,409$
Easements111,000 - - 111,000
Construction in progress6,747,598 15,232,061 (5,356,641) 16,623,018
Total capital assets not being depreciated25,495,719 16,785,349 (5,356,641) 36,924,427
Capital assets being depreciated:
Land improvements22,918,782 47,548 - 22,966,330
Buildings and structures63,799,864 - - 63,799,864
Furniture and office equipment3,844,835 219,142 (55,726) 4,008,251
Vehicles and equipment15,296,907 1,162,081 (822,828) 15,636,160
Infrastructure94,180,443 5,023,465 (992,468) 98,211,440
Parks15,883,053 16,005 (70,875) 15,828,183
Total capital assets being depreciated215,923,884 6,468,241 (1,941,897) 220,450,228
Less accumulated depreciation for:
Land improvements(15,351,600) (700,639) - (16,052,239)
Buildings and structures(16,552,670) (1,815,956) - (18,368,626)
Furniture and office equipment(2,529,592) (295,522) 55,726 (2,769,388)
Vehicles and equipment(10,124,302) (1,280,342) 786,176 (10,618,468)
Infrastructure(50,640,783) (2,878,109) 992,468 (52,526,424)
Parks(8,410,704) (615,038) 65,961 (8,959,781)
Total accumulated depreciation(103,609,651) (7,585,606) 1,900,331 (109,294,926)
Total capital assets being depreciated, net112,314,233 (1,117,365) (41,566) 111,155,302
Governmental activities capital assets, net137,809,952$ 15,667,984$ (5,398,207)$ 148,079,729$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
52
BeginningEnding
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land1,088,965$ -$ -$ 1,088,965$
Construction in progress14,499,230 16,989,397 (15,123,437) 16,365,190
Total capital assets not being depreciated15,588,195 16,989,397 (15,123,437) 17,454,155
Capital assets being depreciated:
Land improvements & golf course9,838,319 - (19,035) 9,819,284
Buildings and structures23,238,003 4,152,247 (52,739) 27,337,511
Furniture and office equipment153,303 - - 153,303
Vehicles and equipment7,020,629 3,879,377 (226,062) 10,673,944
Utility infrastructure 106,667,718 7,813,510 - 114,481,228
Lease property capital lease430,614 - - 430,614
Total capital assets being depreciated147,348,586 15,845,134 (297,836) 162,895,884
Less accumulated depreciation for:
Land improvements & golf course(5,942,912) (338,777) 19,035 (6,262,654)
Buildings and structures(12,228,484) (923,270) 48,655 (13,103,099)
Furniture and office equipment(136,593) (4,830) - (141,423)
Vehicles and equipment(4,380,029) (599,540) 200,645 (4,778,924)
Utility infrastructure(37,303,572) (3,332,153) - (40,635,725)
Lease property capital lease(430,614) - - (430,614)
Total accumulated depreciation(60,422,204) (5,198,570) 268,335 (65,352,439)
Total capital assets being depreciated, net86,926,382 10,646,564 (29,501) 97,543,445
Business-type activities capital assets, net102,514,577$ 27,635,961$ (15,152,938)$ 114,997,600$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
53
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government519,622$
Public safety1,090,263
Public works4,116,898
Parks1,858,823
Total depreciation expense - governmental activities7,585,606$
Business-type activities:
Utilities3,642,118$
Liquor88,269
Aquatic Center241,671
Golf Course502,528
Arena489,471
Art Center25,973
Edinborough Park168,732
Centennial Lakes39,808
Total depreciation expense - business-type activities5,198,570$
CONSTRUCTION COMMITMENTS
At December 31, 2014, 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$
14-16 EngVernon Avenue Sidewalk369,832 27,696
13-10NB EngLake Edina Landscape14,930 4,964
14-14 EngFrance Ave Landscape Plan579,979 78,500
14-1 EngMorningside Neighborhood2,207,415 35,849
14-5 EngEdina Terrace Neighborhood1,109,412 103,828
14-11 EngOlinger Boulevard Mill and Overlay591,823 4,118
P-2350th & France Parking1,093,985 779
14-15 EngFrance Ave Lighting & Conduit402,733 384,304
PAK 14520-013Pamela Park Shelter and Turf1,141,700 253,140
NAPamela Park Shelter and Turf1,257,741 542,402
VariousBraemar Arena2,635,857 190,247
VariousBraemar Field8,247,692 525,802
14-9 EngTrunk Storm Sewer Lining789,940 10,795
2,168,126$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
54
Note 5 LONG-TERM DEBT
The City has five types of bonded debt outstanding at December 31, 2014: 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, 2014, the governmental long-term bonded debt of the financial reporting
entity consisted of the following:
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/2014
General Obligation Bonds:
General Obligation - Park & Recreation Refunding, 2005A3.50-4.00%7/19/20052/1/20175,375,000 1,695,000
General Obligation - Capital Improvement Plan, 2007A4.00-4.25%5/24/20072/1/20285,865,000 4,565,000
General Obligation - Capital Improvement Plan, 2009A3.00-4.40%4/29/20092/1/203014,000,000 11,870,000
General Obligation - Capital Improvement Plan, 2010A2.00-4.00%11/18/20102/1/20218,285,000 5,565,000
General Obligation - Capital Improvement Plan, 2013A - Refunding3.00-3.50%10/10/20132/1/20305,710,000 5,400,000
General Obligation - 2014B - Refunding3.00%12/11/20142/1/20171,105,000 1,105,000
Total General Obligation Bonds 40,340,000 30,200,000
Permanent Improvement Revolving (PIR) Bonds:
Permanent Improvement Revolving, 2008B3.00-4.00%8/28/20082/1/20207,755,000 5,005,000
Permanent Improvement Revolving, 2010B2.00-3.00%11/18/20102/1/20222,305,000 1,880,000
Permanent Improvement Revolving, 2011A2.00-3.00%10/27/20112/1/20233,320,000 3,020,000
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 1,670,000
Permanent Improvement Revolving, 2013A3.00-3.50%10/10/20132/1/20302,555,000 2,555,000
Permanent Improvement Revolving, 2014B - Refunding2.00-3.00%12/11/20142/1/20204,075,000 4,075,000
Total PIR Bonds 24,675,000 20,880,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.50-4.13%9/13/20055/1/20265,425,000 3,760,000
Public Project Revenue, Series 2009A2.10-4.55%11/24/20092/1/20302,595,000 1,645,000
Public Project Revenue, Series 2014A2.00-3.625%7/15/20142/1/203516,155,000 16,155,000
Total Public Project Revenue Bonds 24,175,000 21,560,000
Edina Emerald Energy Program (EEEP) Revenue Bonds:
Edina Emerald Energy Program Bonds, 2012A7.00%2/25/20121/1/202333,690 26,952
Edina Emerald Energy Program Bonds, 2012B5.50%8/28/20121/1/201840,030 24,018
Total EEEP Bonds 73,720 50,970
Total bonded indebtedness - governmental activities89,263,720$ 72,690,970$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
55
BUSINESS-TYPE ACTIVITIES
Final
InterestIssueMaturityOriginalPayable
Rates Date Date Issue 12/31/2014
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00-3.00%4/29/20091/1/20172,010,000$ 240,000$
Recreational Facility Bonds, Series 2009C2.00-4.00%12/10/20092/1/20302,440,000 2,060,000
Recreational Facility Bonds, Series 2012B.45-1.60%11/15/20122/1/2020815,000 705,000
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 2,780,000
Utility Revenue Bonds, Series 2008A3.00-4.25%8/28/20082/1/201913,985,000 7,345,000
Utility Revenue Bonds, Series 2011A2.00-3.00%10/27/20112/1/202211,230,000 9,215,000
Utility Revenue Bonds, Series 2012A3.00-4.00%11/15/20122/1/20236,100,000 5,630,000
Utility Revenue Bonds, Series 2014A2.00-3.00%7/15/20142/1/20245,680,000 5,680,000
Utility Revenue Bonds, Series 2014B - Refunding3.00%12/11/20142/1/20171,830,000 1,830,000
Utility Revenue Bonds, Series 2014B - Refunding3.00%12/11/20142/1/20195,710,000 5,710,000
Total Revenue Bonds 61,235,000 44,420,000
Total bonded indebtedness - business-type activities61,235,000$ 44,420,000$
Annual debt service requirements to maturity for the City’s bonds are as follows:
Principal Interest Principal Interest Principal Interest
20153,490,000$ 1,037,922$ 6,015,000$ 503,029$ 245,000$ 733,262$
20162,410,000 943,193 1,925,000 405,625 870,000 695,023
20172,475,000 859,818 2,010,000 346,850 895,000 672,173
20181,990,000 782,343 2,030,000 286,213 1,040,000 643,241
20192,065,000 710,270 1,950,000 226,763 1,075,000 607,910
2020-20248,605,000 2,507,898 4,765,000 587,588 5,950,000 2,476,357
2025-20297,775,000 1,049,096 1,980,000 189,475 5,580,000 1,452,838
2030-20341,390,000 28,712 205,000 3,588 4,835,000 630,935
2035- - - - 1,070,000 19,393
Total30,200,000$ 7,919,252$ 20,880,000$ 2,549,131$ 21,560,000$ 7,931,132$
Principal Interest Principal Interest
2015-$ 3,546$ 12,650,000$ 1,059,235$
201611,375 2,870 4,775,000 836,383
201711,375 2,193 4,945,000 703,989
201811,375 1,517 4,030,000 582,370
20193,369 1,061 4,155,000 471,974
2020-202413,476 1,886 11,050,000 1,121,841
2025-2029- - 1,960,000 293,654
2030-2033- - 855,000 45,037
Total50,970$ 13,073$ 44,420,000$ 5,114,483$
Governmental Activities
GeneralPublic Improvement
Obligation Bonds Revolving Bonds
Public Project
Revenue Bonds
Year Ending
December 31
Year Ending
December 31
Governmental Activities
Edina Emerald Energy Program
Revenue Bonds Bonds
Business-type Activities
Revenue
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
56
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2014, was as follows:
BeginningEndingDue Within
Balance Additions Reductions Balance One Year
Governmental activities:
Bonds payable:
General obligation31,390,000$ 1,105,000$ (2,295,000)$ 30,200,000$ 3,490,000$
PIR 18,360,000 4,075,000 (1,555,000) 20,880,000 6,015,000
Public project revenue5,640,000 16,155,000 (235,000) 21,560,000 245,000
EEEP revenue62,345 - (11,375) 50,970 -
Less deferred amounts:
Discount on bonds(281,240) (179,891) 32,965 (428,166) -
Premiums1,442,363 327,987 (176,158) 1,594,192 -
Total bonds payable56,613,468 21,483,096 (4,239,568) 73,856,996 9,750,000
Compensated absences3,898,653 1,941,400 (1,989,535) 3,850,518 1,540,207
Governmental activity
Long-term liabilities60,512,121$ 23,424,496$ (6,229,103)$ 77,707,514$ 11,290,207$
Business-type activities:
Bonds payable:
Revenue bonds35,160,000$ 13,220,000$ (3,960,000)$ 44,420,000$ 12,650,000$
Less deferred amounts:
Discount on bonds(70,094) (51,555) 7,209 (114,440) -
Premiums1,084,989 632,842 (142,032) 1,575,799 -
Total bonds payable36,174,895 13,801,287 (4,094,823) 45,881,359 12,650,000
Compensated absences907,898 316,080 (398,210) 825,768 330,307
Business-type activity
Long-term liabilities37,082,793$ 14,117,367$ (4,493,033)$ 46,707,127$ 12,980,307$
For governmental activities, compensated absences and other postemployment benefit
obligations are generally liquidated by the general fund.
In 2014, the City issued $12,720,000 of General Obligation bonds, Series 2014B to finance a
current refunding of the 2016 through 2017 maturities of the City’s $5,375,000 General
Obligation bonds, Series 2005A, the 2016 through 2017 maturities of the City’s $8,210,000
General Obligation utility revenue bonds, Series 2007B, the 2016 through 2019 maturities of
the City’s $13,985,000 General Obligation utility revenue bonds, Series 2008A, and the 2016
through 2020 maturities of the City’s $7,755,000 General Obligation permanent improvement
revolving fund bonds, Series 2008B. Savings from the current proceeds were not placed in
escrow. The General Obligation bonds, Series 2005A, Series 2007B, Series 2008A, and
Series 2008B will all be redeemed on February 1, 2015. The current refunding was
undertaken to reduce total debt service payments by $933,960 and resulted in an economic
gain of $915,095.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
57
The City anticipates that ad valorem property taxes will be sufficient to pay future debt service
on the Series 2005A refunding portion, utility revenues will be sufficient to pay future debt
service on the Series 2007B and Series 2008A refunding portions, and special assessments
to benefited properties will be sufficient to pay future debt service on the Series 2008B
refunding portion of this issue.
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
% of TotalRemainingPrincipalPledged
DebtTerm ofPrincipaland InterestRevenue
Bond Issue Use of Proceeds Type Service Pledge and Interest Paid Received
2009B Recreational Facility BondsPool improvementPool100%2009-2017251,100$ 88,200$ 918,412$
2009C Recreational Facility BondsArena improvementsArena100%2010-20302,765,050 178,350 2,091,685
2012B Recreational Facility BondsArena improvementsArena100%2013-2020730,366 117,590 2,091,685
2012C Recreational Facility BondsArena improvementsArena100%2013-20332,787,091 53,794 2,091,685
2013B Recreational Facility BondsGolf dome improvementsGolf100%2014-20291,415,423 28,263 3,229,348
2007B Utility Revenue BondsUtility infrastructureUtility100%2007-20172,835,600 983,300 17,548,883
2008A Utility Revenue BondsUtility infrastructureUtility100%2008-20197,492,206 1,612,075 17,548,883
2011A Utility Revenue BondsUtility infrastructureUtility100%2012-202210,212,425 1,281,350 17,548,883
2012A Utility Revenue BondsUtility infrastructureUtility100%2013-20236,504,725 677,350 17,548,883
2014A Utility Revenue BondsUtility infrastructureUtility100%2014-20246,449,779 - 17,548,883
2014B Utility Revenue BondsUtility infrastructureUtility100%2014-20208,090,717 - 17,548,883
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 2014 is
computed as follows:
December 31, 2014
Market Value (after fiscal disparities)8,911,694,683$
Debt Limit (3% of Market Value)267,350,840$
Amount of debt applicable to debt limit:
Total bonded debt117,110,970$
Less:
Public improvement revolving bonds(20,880,000)
Revenue bonds(44,420,000)
EEEP revenue bonds(50,970)
Total debt applicable to debt limit51,760,000$
Legal debt margin215,590,840$
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014
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 2014. PEPFF members were
required to contribute 10.2% of their covered salary in 2014. 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 15.3% for PEPFF members. The
City’s contributions to the Public Employees Retirement Fund for the years ending
December 31, 2014, 2013, and 2012 were $1,146,666, $1,097,869, and $1,044,217,
respectively. The City’s contributions to the Public Employees Police and Fire Fund for
the years ending December 31, 2014, 2013, and 2012 were $1,111,329, $1,046,021, and
$1,020,720, respectively. The City’s contributions were equal to the contractually required
contributions for each year as set by state statute. Contribution rates will increase on
January 1, 2015 in the Coordinated Plan (6.5% for members and 7.5% for employers)
and the Police and Fire Fund (10.8% for members and 16.2% for employers).
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, 2014
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 contribution307,459$
Interest on net OPEB obligation66,959
Adjustment to annual required contribution(56,176)
Annual OPEB cost (expense)318,242
Contributions made(86,445)
Increase in net OPEB obligation231,797
Net OPEB obligation - beginning of year1,487,975
Net OPEB obligation - end of year1,719,772$
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, 2012308,120$ 73,700$ 23.9%1,261,765$
December 31, 2013319,144 92,934 29.1%1,487,975
December 31, 2014318,242 86,445 27.2%1,719,772
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
61
D. Funded Status and Funding Progress
As of January 1, 2014, the most recent actuarial valuation date, the plan was zero
percent funded. The actuarial accrued liability for benefits was $3,026,848, and the
actuarial value of assets was $0, resulting in an unfunded actuarial accrued liability
(UAAL) of $3,026,848. The covered payroll (annual payroll of active employees covered
by the plan) was $20,305,179, and the ratio of the UAAL to the covered payroll was 14.9
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, 2014 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, 2014 was 30 years on an “open” basis.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
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, 2014, is as follows:
Payable FundAmount
Edinborough ParkSports Dome22,718$
Receivable Fund
The City’s interfund receivable and payable eliminate what would have been a negative cash
balance.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
63
NonmajorNonmajor
Construction Governmental Golf Course Arena Enterprise Total
Transfer out:
General Fund1,134,968$ 20,000$ 1,100,000$ -$ -$ 2,254,968$
Construction Fund- 7 114,021 2,151,395 6,489,809 8,755,232
Utilities Fund100,000 - - - - 100,000
Liquor Fund150,000 - 485,000 200,000 200,000 1,035,000
1,384,968$ 20,007$ 1,699,021$ 2,351,395$ 6,689,809$ 12,145,200$
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 $485,000, $200,000 and $200,000 to the golf course fund,
arena, and art center funds, respectively, to subsidize operations.
2. The construction fund transferred $114,021, $57,559, $13,825, $41,593 and $25,000 to
the golf course, arena, art center, edinborough park, and centennial lakes funds,
respectively, to subsidize capital improvements to those facilities.
3. The construction fund transferred $2,093,836 and $6,409,391, respectively, to the arena
and sports dome funds to reimburse for debt proceeds initially received in the
construction fund for capital projects at those facilities.
4. The utilities fund and liquor fund transferred $100,000 and $150,000, respectively, to the
construction fund to fund the capital improvement program, as planned in the 2014
budget.
5. The general fund transferred $2,049,968 of the 2013 unassigned fund balance to the
construction and golf course funds; $949,968 to fund various projects and equipment
replacement within the construction fund and $1,100,000 to the golf course to assist in
stabilizing the fund deficit.
6. The general fund transferred $185,000 to the construction fund for use of park reserves
from the parkland dedication money received in 2013.
7. The general fund and construction fund transferred $20,000 and $7, respectively, to the
arts and culture fund to consolidate public art funds into this new special revenue fund.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
64
Note 10 TAX INCREMENT DISTRICTS
The City of Edina is the administering authority for the following Tax Increment Districts:
District number 1208 (Southdale 2 Tax Increment Financing District) is an economic development
district established in 2012 pursuant to Minnesota Statutes with a termination date of 2022.
District number 1211 (Pentagon Park Increment Financing District) is an economic development
district established in 2014 pursuant to Minnesota Statutes with a termination date of 2043.
The following table reflects values as of December 31, 2014:
TIF #1208TIF #1211Total
Original tax capacity8,772,449$ 723,636$ 9,496,085$
Current tax capacity10,964,578 723,636 11,688,214
Fiscal Disparities573,209 - 573,209
Tax capacity change1,618,920 - 1,618,920
Captured tax capacity value:
Retained captured tax capacity1,618,920$ -$ 1,618,920$
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 was provided through Travelers insurance up through
June 30, 2014 and, as of July 1, 2014, is now provided by the League of Minnesota Cities
Insurance Trust. There is no deductible. The City has an annual deposit premium that is
subject to adjustment based on the actual audited payroll.
Through June 30, 2014, automobile and general liability coverage was provided through
Travelers insurance. The City paid an annual premium for this coverage and all claims
were paid from the plan up to the annual maximum of $1,500,000 for automobile and
$1,500,000 for general liability. The City was not subject to a deductible for general
liability coverage. The deductible for automobile insurance was $1,000 for
comprehensive and $1,000 for collision.
Through June 30, 2014, property coverage was also provided through Travelers
insurance. The City paid an annual premium for this coverage, and all claims were paid
for by the plan. The City had $10,000 - $50,000 deductibles per occurrence depending on
claim type, with annual maximum coverage of $139,188,285.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
65
Through June 30, 2014, Police professional insurance coverage was provided through
Travelers insurance. The City pays an annual premium for this coverage, and had a
$10,000 deductible per occurrence, with a $1,500,000 annual maximum for all claims.
As of July 1, 2014, the City obtained insurance coverage with the League of Minnesota
Cities Insurance Trust. Under the package policy (including property, general liability, and
automobile coverage), the City paid an annual premium and had a $50,000 per
occurrence deductible and is subject to an annual aggregate deductible of $100,000, with
a $1,500,000 per occurrence maximum.
Liquor liability coverage is provided through the League of Minnesota Cities Insurance
Trust. The City pays an annual premium of $27,099 for this coverage and has a
$1,000,000 annual maximum.
Settlement claims have not exceeded insurance coverage for each of the past three
years. While there were no significant decreases in insurance coverage during 2014,
there were significant increases in insurance coverage.
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, 2014.
D. TAX INCREMENT DISTRICTS
The City’s tax increment districts are subject to review by the State of Minnesota Office of
the State Auditor (OSA). Any disallowed claims or misuse of tax increments could
become a liability of the applicable fund. Management is not aware of any instances of
noncompliance which would have a material effect on the financial statements.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
66
Note 12 CONDUIT DEBT OBLIGATION
As of December 31, 2014, the City of Edina had five series of Housing and Health Care Revenue
Bonds, with an aggregate principal amount payable of $51,970,000. 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, 2014,
the City paid a total of $50,388 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, 2014,
the City paid a total of $13,672 in membership fees to the I-494 Corridor Commission.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
67
Note 15 FUND BALANCES
A. Classifications
At December 31, 2014, a summary of the City’s governmental fund balance classifications
are as follows:
General Fund HRA Fund Debt Service Construction
Nonmajor
Funds Total
Nonspendable
Prepaid items240,291$ -$ -$ -$ -$ 240,291$
Restricted
Park dedication757,673 - - - - 757,673
Tax increments- 7,929,998 - - - 7,929,998
Debt service- - 12,678,291 - - 12,678,291
Unspent bond proceeds- - - 5,779,906 - 5,779,906
Pedestrian and cyclist improvements- - - - 729,496 729,496
Energy efficiency projects- - - - 818,926 818,926
Forfeitures- - - - 658,424 658,424
Grant funds- - - - 85,584 85,584
Arts and culture- - - - 5,584 5,584
Donations- - - - 310,223 310,223
Total Restricted757,673 7,929,998 12,678,291 5,779,906 2,608,237 29,754,105
Assigned
Unrealized investment gains26,122 - - - - 26,122
Compensated absences1,540,207 - - - - 1,540,207
Construction commitments- - - 1,441,282 - 1,441,282
Special projects- - - 390,386 - 390,386
Equipment- - - 2,697,705 - 2,697,705
Construction - - - 2,517,237 - 2,517,237
Total Assigned1,566,329 - - 7,046,610 - 8,612,939
Unassigned11,429,444 - - - - 11,429,444
Total Fund Balance13,993,737$ 7,929,998$ 12,678,291$ 12,826,516$ 2,608,237$ 50,036,779$
B. Unassigned Fund Balance Policy
The City Council has formally adopted a fund balance policy regarding the desired range for
unassigned fund balance for the general fund. The policy establishes a goal for unassigned
general fund balance of 42%-47% of the subsequent year’s budgeted property tax revenue.
As of December 31, the City has $11,429,444 of unassigned fund balance in the general
fund, or 50.1% of 2015 budgeted property tax revenue. This amount is $708,294 above the
goal range identified in the policy.
CITY OF EDINA, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2014
68
Note 16 GASB STANDARDS ISSUED BUT NOT YET IMPLEMENTED
GASB Statement No. 68 replaces the requirements of Statement No. 27, “Accounting for
Pensions by State and Local Governmental Employers” and Statement No. 50, “Pension
Disclosures,” as they relate to governments that provide pensions through pension plans
administered as trusts or similar arrangements that meet certain criteria. Statement No. 68
requires governments providing defined benefit pensions to recognize their long-term obligation
for pension benefits as a liability for the first time, and to more comprehensively and comparably
measure the annual costs of pension benefits. This statement will be effective for fiscal years
beginning after June 15, 2014. The City has not yet determined the financial statement impact of
adopting this new standard.
Note 17 SUBSEQUENT EVENT
In March 2014 the City Council accepted the recommendation of staff and the Park Board to
close Fred Richards golf course at the end of the 2014 season. With the course being open for
the entire 2014 season, it was determined to be most appropriate to dispose of the related assets
in 2015. As a result, we anticipate a significant loss on disposal may be recognized in the golf
course fund in fiscal year 2015.
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2014
2014
ActualVariance with
OriginalFinalAmountsFinal Budget
Revenues:
Taxes:
General property taxes22,390,403$ 22,390,403$ 22,147,135$ (243,268)$
Franchise taxes770,000 770,000 808,738 38,738
Lodging tax- - 11,301 11,301
Total taxes23,160,403 23,160,403 22,967,174 (193,229)
Licenses and permits:3,277,865 3,277,865 4,490,993 1,213,128
Intergovernmental:
Federal:36,000 36,000 23,346 (12,654)
State:
Municipal state aid195,000 195,000 195,000 -
Other42,500 42,500 121,994 79,494
State aid - police 320,000 320,000 362,394 42,394
State aid - fire 400,000 400,000 375,573 (24,427)
Health programs100,000 100,000 118,977 18,977
Total intergovernmental1,093,500 1,093,500 1,197,284 103,784
Charges for services:
Administration92,000 92,000 103,689 11,689
Communications & Technology113,994 113,994 119,688 5,694
Finance646,212 646,212 751,410 105,198
Public Works69,000 69,000 118,928 49,928
Engineering410,400 410,400 212,063 (198,337)
Police500,500 500,500 496,249 (4,251)
Fire1,951,085 1,951,085 2,008,470 57,385
Parks & Recreation264,275 264,275 292,812 28,537
Community Development85,300 85,300 133,133 47,833
Total charges for services4,132,766 4,132,766 4,236,442 103,676
Fines and forfeits950,000 950,000 993,954 43,954
Miscellaneous:
Investment income100,000 100,000 144,127 44,127
Rental of property440,000 440,000 546,874 106,874
Parkland dedication- - 757,278 757,278
Other11,100 11,100 22,291 11,191
Total miscellaneous551,100 551,100 1,470,570 919,470
Total revenues33,165,634 33,165,634 35,356,417 2,190,783
Budgeted Amounts
69
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2014
2014
ActualVariance with
OriginalFinalAmountsFinal Budget
Expenditures:
General government:
Administration:
Personal services856,247$ 856,247$ 895,474$ (39,227)$
Contractual services704,286 704,286 641,365 62,921
Commodities16,000 16,000 76,137 (60,137)
Central services103,536 103,536 99,147 4,389
Total administration1,680,069 1,680,069 1,712,123 (32,054)
Communications & technology:
Personal services602,866 602,866 642,620 (39,754)
Contractual services281,235 281,235 298,899 (17,664)
Commodities46,000 46,000 45,148 852
Central services68,256 68,256 64,642 3,614
Total communications & technology998,357 998,357 1,051,309 (52,952)
Human Resources:
Personal services623,052 623,052 927,885 (304,833)
Contractual services32,975 32,975 31,645 1,330
Commodities2,500 2,500 4,437 (1,937)
Central services18,960 18,960 17,500 1,460
Total human resources677,487 677,487 981,467 (303,980)
Finance:
Personal services613,105 613,105 498,390 114,715
Contractual services212,000 212,000 208,847 3,153
Commodities4,000 4,000 9,258 (5,258)
Central services55,404 55,404 52,934 2,470
Total finance884,509 884,509 769,429 115,080
Community development:
Personal services1,241,405 1,241,405 1,188,715 52,690
Contractual services229,146 229,146 206,871 22,275
Commodities7,900 7,900 3,738 4,162
Central services116,580 116,580 110,636 5,944
Total community development1,595,031 1,595,031 1,509,960 85,071
Total general government5,835,453 5,835,453 6,024,288 (188,835)
Public safety:
Police:
Personal services8,002,832 8,002,832 7,675,364 327,468
Contractual services935,011 935,011 946,490 (11,479)
Commodities90,315 90,315 79,197 11,118
Central services1,138,008 1,138,008 1,097,305 40,703
Total police10,166,166 10,166,166 9,798,356 367,810
Fire:
Personal services5,508,069 5,508,069 5,488,276 19,793
Contractual services496,525 496,525 499,445 (2,920)
Commodities199,700 199,700 201,319 (1,619)
Central services493,164 493,164 474,897 18,267
Total fire6,697,458 6,697,458 6,663,937 33,521
Total public safety16,863,624 16,863,624 16,462,293 401,331
Budgeted Amounts
70
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND (CONTINUED)
For The Year Ended December 31, 2014
2014
ActualVariance with
OriginalFinalAmountsFinal Budget
Budgeted Amounts
Public works:
Public works:
Personal services4,317,853$ 4,317,853$ 4,400,581$ (82,728)$
Contractual services1,156,323 1,156,323 1,193,408 (37,085)
Commodities1,276,000 1,276,000 1,113,074 162,926
Central services1,516,044 1,516,044 1,460,795 55,249
Total public works8,266,220 8,266,220 8,167,858 98,362
Engineering:
Personal services1,382,335 1,382,335 1,291,189 91,146
Contractual services83,575 83,575 87,068 (3,493)
Commodities30,000 30,000 17,911 12,089
Central services111,888 111,888 105,148 6,740
Total engineering1,607,798 1,607,798 1,501,316 106,482
Total public works9,874,018 9,874,018 9,669,174 204,844
Parks:
Parks & recreation:
Personal services937,287 937,287 892,848 44,439
Contractual services273,855 273,855 237,106 36,749
Commodities68,377 68,377 78,864 (10,487)
Central services78,120 78,120 74,774 3,346
Total parks & recreation1,357,639 1,357,639 1,283,592 74,047
Total parks1,357,639 1,357,639 1,283,592 74,047
Total expenditures33,930,734 33,930,734 33,439,347 491,387
Revenues over (under) expenditures(765,100) (765,100) 1,917,070 2,682,170
Other financing sources (uses):
Transfer from other funds765,100 - - -
Transfer to other funds- (2,049,968) (2,254,968) (205,000)
Total financing sources (uses)765,100 (2,049,968) (2,254,968) (205,000)
Net increase (decrease) in fund balance-$ (2,815,068)$ (337,898) 2,477,170$
Fund balance - January 1 14,331,635
Fund balance - December 3113,993,737$
71
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - HOUSING AND REDEVELOPMENT AUTHORITY (HRA) FUND
For The Year Ended December 31, 2014
2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Tax increment collections3,900,000$ 3,900,000$ 5,052,705$ 1,152,705$
Investment income118,000 118,000 158,945 40,945
Total revenues4,018,000 4,018,000 5,211,650 1,193,650
Expenditures:
Personal services115,219 115,219 114,688 (531)
Contractual services656,070 656,070 1,443,672 787,602
Commodities200 200 - (200)
Capital outlay5,600,000 5,600,000 7,218,933 1,618,933
Total expenditures6,371,489 6,371,489 8,777,293 2,405,804
Net increase (decrease) in fund balance(2,353,489)$ (2,353,489)$ (3,565,643) (1,212,154)$
Fund balance - January 111,495,641
Fund balance - December 317,929,998$
Budgeted Amounts
72
CITY OF EDINA, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
For The Year Ended December 31, 2014
UnfundedUnfunded
ActuarialActuarialActuarialActuarialLiability as a
ValuationAccruedValue ofAccruedFundedCoveredPercentage of
Date Liability Plan Assets Liability Ratio Payroll Payroll
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%
January 1, 20143,026,848$ -$ 3,026,848$ 0.0%20,305,179$ 14.9%
73
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2014
74
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, 2014
75
Note B EXCESS OF EXPENDITURES OVER APPROPRIATIONS
The General Fund is legally adopted on a basis consistent with accounting principles generally
accepted in the United States of America. The legal level of budgetary control is at the department
level for the General Fund. The following is a listing of General Fund departments whose
expenditures exceed budget appropriations.
FinalOver
Budget Actual Budget
General Fund
General Government
Administration1,680,069$ 1,712,123$ 32,054$
Communications & technology998,357 1,051,309 52,952
Human resources677,487 981,467 303,980
Excess expenditures in the General Fund administration department are due to an increase in
salaries primarily related to the City management fellow position being filled year round in 2014.
Excess expenditures in the General Fund communications & technology services department are due
to an increase in salaries primarily related to an increase in hours worked by interns throughout 2014.
Excess expenditures in the General Fund human resources department are due to an increase in
salaries related to two factors. First, the payroll specialist, previously within the finance department,
was reallocated here during 2014. Second, there was a large increase in severance in the current
year due to numerous tenured employees retiring during 2014. Governmental fund employee’s
severance pay runs through the human resources department and is difficult to budget for.
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 Fund6,371,489$ 8,777,293$ 2,405,804$
Debt Service Fund6,008,988 6,020,022 11,034
Construction Fund9,792,140 12,281,710 2,489,570
Police SR Fund59,000 215,451 156,451
Braemar Memorial Fund- 32,000 32,000
Arts and Culture Fund- 16,328 16,328
Excess expenditures in the HRA fund are due to higher than anticipated expenditures related to
infrastructure projects.
Excess expenditures in the debt service fund are due to higher than anticipated issuances costs
related to new debt.
CITY OF EDINA, MINNESOTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2014
76
Excess expenditures in the construction fund are due to higher than anticipated expenditures related
to infrastructure projects.
Excess expenditures in the Police SR fund are due to unbudgeted purchases of capital equipment
that was offset by additional intergovernmental funding received for the purpose of funding the
purchases.
Excess expenditures in the Braemar Memorial fund are due to unbudgeted expenses related to the
golf course master plan.
The Arts and Culture fund was newly created in 2014 and will have no Council-approved budget until
2015. Therefore, no analysis of expenditures exceeding budget appropriations will apply in the
current year.
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.
Arts and Culture Fund - This fund was established to account for funds
donated to the City for the purpose of enhancing public arts and culture related
activities.
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
77
CITY OF EDINA, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2014
Capital
Projects
CommunityPolicePedestrianTotal Nonmajor
DevelopmentSpecialBraemarand CyclistArts andEnvironmentalGovernmental
Block GrantRevenueMemorialSafety CultureEfficiency Funds
Assets
Cash and investments-$ 714,833$ 324,576$ 469,040$ 5,588$ 817,340$ 2,331,377$
Accrued interest- - 647 1,292 15 1,586 3,540
Accounts receivable- 525 - 287,060 - - 287,585
Due from other governments- 29,346 - - - - 29,346
Total assets-$ 744,704$ 325,223$ 757,392$ 5,603$ 818,926$ 2,651,848$
Liabilities and Fund Balance
Liabilities:
Accounts payable-$ 696$ 15,000$ 10,789$ 19$ -$ 26,504$
Contracts payable- - - 17,107 - - 17,107
Total liabilities- 696 15,000 27,896 19 - 43,611
Fund balance:
Restricted- 744,008 310,223 729,496 5,584 818,926 2,608,237
Total liabilities
and fund balance-$ 744,704$ 325,223$ 757,392$ 5,603$ 818,926$ 2,651,848$
Special Revenue
78
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2014
Capital
Projects
CommunityPolicePedestrianTotal Nonmajor
DevelopmentSpecialBraemarand CyclistArts andEnvironmentalGovernmental
Block GrantRevenueMemorialSafetyCultureEfficiencyFunds
Revenues:
Franchise taxes-$ -$ -$ 1,144,167$ -$ -$ 1,144,167$
Intergovernmental18,700 71,962 - - - - 90,662
Fines and forfeitures- 169,953 - - - - 169,953
Investment income- 201 4,258 7,790 62 6,630 18,941
Other revenues- - 2,795 - 1,843 - 4,638
Total revenues18,700 242,116 7,053 1,151,957 1,905 6,630 1,428,361
Expenditures:
Current:
General government18,700 - - - - - 18,700
Public safety- 137,099 - - - - 137,099
Public works- - - 96,610 - - 96,610
Parks- - 32,000 - 16,328 - 48,328
Capital Outlay:
Public safety- 78,352 - - - - 78,352
Public works- - - 818,213 - - 818,213
Parks- - - - - 4,358 4,358
Total expenditures18,700 215,451 32,000 914,823 16,328 4,358 1,201,660
Revenues over (under)
expenditures- 26,665 (24,947) 237,134 (14,423) 2,272 226,701
Other financing sources (uses):
Transfers in - - - - 20,007 - 20,007
Net increase (decrease)
in fund balance- 26,665 (24,947) 237,134 5,584 2,272 246,708
Fund balance -
January 1- 717,343 335,170 492,362 - 816,654 2,361,529
Fund balance -
December 31-$ 744,008$ 310,223$ 729,496$ 5,584$ 818,926$ 2,608,237$
Special Revenue
79
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Intergovernmental105,000$ 105,000$ 18,700$ (86,300)$
Expenditures:
Current:
Contractual services105,000 105,000 18,700 (86,300)
Net increase (decrease) in fund balance-$ -$ - -$
Fund balance - January 1 -
Fund balance - December 31-$
Budgeted Amounts
80
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - POLICE SPECIAL REVENUE
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Intergovernmental153,689$ 153,689$ 71,962$ (81,727)$
Fines and forfeiture57,821 57,821 169,953 112,132
Investment income900 900 201 (699)
Total revenues212,410 212,410 242,116 29,706
Expenditures:
Current:
Contractual services54,000 54,000 66,217 12,217
Commodities5,000 5,000 70,882 65,882
Capital outlay- - 78,352 78,352
Total expenditures59,000 59,000 215,451 156,451
Net increase (decrease) in fund balance153,410$ 153,410$ 26,665 (126,745)$
Fund balance - January 1717,343
Fund balance - December 31744,008$
Budgeted Amounts
81
CITY OF EDINA, MINNESOTA
SPECIAL REVENUE FUND - BRAEMAR MEMORIAL
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Investment income200$ 200$ 4,258$ 4,058$
Donations5,000 5,000 2,795 (2,205)
Total revenues5,200 5,200 7,053 1,853
Expenditures:
Current:
Contractual services- - 32,000 32,000
Net increase (decrease) in fund balance5,200$ 5,200$ (24,947) (30,147)$
Fund balance - January 1335,170
Fund balance - December 31310,223$
Budgeted Amounts
82
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, 2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
Franchise taxes1,200,000$ 1,200,000$ 1,144,167$ (55,833)$
Investment income- - 7,790 7,790
Total revenues1,200,000 1,200,000 1,151,957 (48,043)
Expenditures:
Current:
Personal services- - 1,079 1,079
Contractual services22,000 22,000 15,726 (6,274)
Commodities25,000 25,000 53 (24,947)
Central services79,752 79,752 79,752 -
Capital outlay1,100,000 1,100,000 818,213 (281,787)
Total expenditures1,226,752 1,226,752 914,823 (311,929)
Net increase (decrease) in fund balance(26,752)$ (26,752)$ 237,134 263,886$
Fund balance - January 1492,362
Fund balance - December 31729,496$
Budgeted Amounts
83
This page left blank intentionally.
84
Debt Service Fund - This fund was established to account for the payment of
principal and interest on the General Obligation, Permanent Improvement
Revolving, Public Project Revenue, and Edina Emerald Energy Program 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
85
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, 2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
General property taxes3,953,397$ 3,953,397$ 3,866,611$ (86,786)$
Special assessments2,083,699 2,083,699 2,870,102 786,403
Investment income20,000 20,000 11,408 (8,592)
Total revenues6,057,096 6,057,096 6,748,121 691,025
Expenditures:
Debt Service6,008,988 6,008,988 6,020,022 11,034
Revenues over (under) expenditures48,108 48,108 728,099 679,991
Other financing sources (uses):
Bonds issued- - 270,599 270,599
Refunding bonds issued- - 5,180,000 5,180,000
Premium (discount) on bonds issued- - 252,824 252,824
Total other financing
sources (uses)- - 5,703,423 5,703,423
Net increase (decrease) in fund balance48,108$ 48,108$ 6,431,522 6,383,414$
Fund balance - January 16,246,769
Fund balance - December 3112,678,291$
Budgeted Amounts
86
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, 2014
ActualVariance with
OriginalFinalAmountsFinal budget
Revenues:
General property taxes992,072$ 992,072$ 974,747$ (17,325)$
Franchise taxes100,000 100,000 102,491 2,491
Special assessments1,237,872 1,237,872 1,735,908 498,036
License and permits25,000 25,000 92,190 67,190
Intergovernmental2,680,000 2,680,000 2,673,563 (6,437)
Charges for services50,000 50,000 34,278 (15,722)
Investment income88,300 88,300 106,630 18,330
Other revenues- - 51,846 51,846
Total revenues5,173,244 5,173,244 5,771,653 598,409
Expenditures:
Personal services102,956 102,956 111,101 8,145
Contractual services148,522 148,522 377,752 229,230
Commodities73,522 73,522 29,569 (43,953)
Capital outlay9,467,140 9,467,140 11,763,288 2,296,148
Total expenditures9,792,140 9,792,140 12,281,710 2,489,570
Revenues over (under) expenditures(4,618,896) (4,618,896) (6,510,057) (1,891,161)
Other financing sources (uses):
Transfers in250,000 250,000 1,384,968 1,134,968
Transfers out(620,600) (620,600) (8,755,232) (8,134,632)
Sale of capital assets- - 70,603 70,603
Bonds issued2,917,200 2,917,200 15,884,401 12,967,201
Premium (discount) on bonds issued- - (104,728) (104,728)
Total other financing
sources (uses)2,546,600 2,546,600 8,480,012 5,933,412
Net increase (decrease) in fund balance(2,072,296)$ (2,072,296)$ 1,969,955 4,042,251$
Fund balance - January 110,856,561
Fund balance - December 3112,826,516$
Budgeted Amounts
87
This page left blank intentionally.
88
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
89
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF NET POSITION
NONMAJOR PROPRIETARY FUNDS
December 31, 2014
Total Nonmajor
ArtEdinboroughCentennialSportsProprietary
Center Park Lakes Dome Funds
Assets
Current assets:
Cash and investments310,158$ 1,648,005$ 904,577$ -$ 2,862,740$
Interest receivable284 3,055 1,784 - 5,123
Accounts receivable- 8,553 2,625 44,389 55,567
Due from other funds- 22,718 - - 22,718
Inventory8,260 - - - 8,260
Total current assets318,702 1,682,331 908,986 44,389 2,954,408
Noncurrent assets:
Net capital assets140,117 1,245,591 316,860 8,058,659 9,761,227
Total assets458,819 2,927,922 1,225,846 8,103,048 12,715,635
Liabilities:
Current liabilities:
Accounts payable10,878 35,539 6,987 18,647 72,051
Salaries payable15,372 40,325 24,222 2,714 82,633
Contracts payable- 3,995 25,040 1,642,577 1,671,612
Due to other funds- - - 22,718 22,718
Due to other governments863 8,461 1,106 6 10,436
Unearned revenue9,625 30 180 - 9,835
Compensated absences payable4,798 22,418 29,934 - 57,150
Total current liabilities41,536 110,768 87,469 1,686,662 1,926,435
Noncurrent liabilities:
Net OPEB obligation5,655 13,727 13,659 - 33,041
Compensated absences payable7,196 33,628 44,902 - 85,726
Total noncurrent liabilities12,851 47,355 58,561 - 118,767
Total liabilities54,387 158,123 146,030 1,686,662 2,045,202
Net position:
Net investment in capital assets 140,117 1,241,596 291,820 6,416,082 8,089,615
Unrestricted264,315 1,528,203 787,996 304 2,580,818
Total net position404,432$ 2,769,799$ 1,079,816$ 6,416,386$ 10,670,433$
90
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2014
Total Nonmajor
ArtEdinboroughCentennialSportsProprietary
Center Park Lakes Dome Funds
Operating revenues:
Sales - retail42,403$ -$ -$ -$ 42,403$
Sales - concessions209 118,850 26,924 - 145,983
Memberships24,938 63,190 - - 88,128
Admissions- 684,881 - 84 684,965
Building rental- 227,558 111,184 17,380 356,122
Rental of equipment- 10,951 145,385 - 156,336
Greens fees- - 196,147 - 196,147
Class registration & other fees413,332 220,178 279,253 410 913,173
Total operating revenues480,882 1,325,608 758,893 17,874 2,583,257
Operating expenses:
Cost of sales and services2,881 65,464 10,241 - 78,586
Personal services434,583 640,110 560,057 7,829 1,642,579
Contractual services89,221 299,975 173,900 605 563,701
Commodities68,112 116,404 134,148 2,445 321,109
Central Services33,540 49,558 48,112 - 131,210
Depreciation25,973 168,732 39,808 - 234,513
Total operating expenses654,310 1,340,243 966,266 10,879 2,971,698
Operating income (loss)(173,428) (14,635) (207,373) 6,995 (388,441)
Nonoperating revenues (expenses):
Investment income2,103 22,065 9,858 - 34,026
Donations5,429 - 7,771 - 13,200
Gain (loss) on sale of capital asset(4,084) - - - (4,084)
Miscellaneous- 60,876 - - 60,876
Total nonoperating
revenues (expenses)3,448 82,941 17,629 - 104,018
Income (loss) before transfers(169,980) 68,306 (189,744) 6,995 (284,423)
Transfers:
Transfers in213,825 41,593 25,000 6,409,391 6,689,809
Change in net position43,845 109,899 (164,744) 6,416,386 6,405,386
Net position - January 1 360,587 2,659,900 1,244,560 - 4,265,047
Net position - December 31404,432$ 2,769,799$ 1,079,816$ 6,416,386$ 10,670,433$
91
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR PROPRIETARY FUNDS
For The Year Ended December 31, 2014
Total Nonmajor
ArtEdinboroughCentennialSportsProprietary
Center Park Lakes Dome Funds
Cash flows from operating activities:
Receipts from customers and users480,782$ 1,324,883$ 756,428$ (26,515)$ 2,535,578$
Payment to suppliers(185,574) (545,570) (379,318) 15,603 (1,094,859)
Payment to employees(423,996) (630,932) (578,498) (5,115) (1,638,541)
Donations received5,429 - 7,771 - 13,200
Miscellaneous received- 60,876 - - 60,876
Net cash provided by (used in)
operating activities(123,359) 209,257 (193,617) (16,027) (123,746)
Cash flows from noncapital financing activities:
Transfer from other funds213,825 41,593 25,000 6,409,391 6,689,809
Proceeds from interfund borrowing- - - 22,718 22,718
Payment of interfund borrowing- (22,718) - (16,946) (39,664)
Net cash provided by noncapital
financing activities213,825 18,875 25,000 6,415,163 6,672,863
Cash flows from capital and related financing activities:
Acquisition of capital assets- (175,214) - (6,399,136) (6,574,350)
Cash flows from investing activities:
Interest received2,149 21,361 13,383 - 36,893
Net increase (decrease) in cash
and investments92,615 74,279 (155,234) - 11,660
Cash and investments - January 1217,543 1,573,726 1,059,811 - 2,851,080
Cash and investments - December 31310,158$ 1,648,005$ 904,577$ -$ 2,862,740$
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)(173,428)$ (14,635)$ (207,373)$ 6,995$ (388,441)$
Adjustments to reconcile operating loss
to net cash flows from operating activities:
Depreciation25,973 168,732 39,808 - 234,513
Donations5,429 - 7,771 - 13,200
Miscellaneous revenue (expense)- 60,876 - - 60,876
Changes in assets and liabilities:
Decrease (increase) in receivables- (725) (2,625) (44,389) (47,739)
Decrease (increase) in inventory2,463 - - - 2,463
Increase (decrease) in accounts payable5,500 (14,879) (10,540) 18,647 (1,272)
Increase (decrease) in salaries payable3,630 3,494 (5,200) 2,714 4,638
Increase (decrease) in due to
other governments217 710 (2,377) 6 (1,444)
Increase (decrease) in unearned revenue(100) - 160 - 60
Increase (decrease) in OPEB payable1,438 1,849 1,781 - 5,068
Increase (decrease) in
compensated absences5,519 3,835 (15,022) - (5,668)
Total adjustments50,069 223,892 13,756 (23,022) 264,695
Net cash provided by (used in)
operating activities(123,359)$ 209,257$ (193,617)$ (16,027)$ (123,746)$
Noncash investing activities:
Increase (decrease) in
fair value of investments633 7,603 4,968 - 13,204
Noncash noncapital financing activities:
Acquisition of capital assets with
contracts payable- 42,661 (25,040) (1,567,337) (1,549,716)
92
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
93
This page left blank intentionally.
94
CITY OF EDINA, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2014
BalanceBalance
January 1AdditionsDeductionsDecember 31
POLICE SEIZURE
Assets:
Cash and investments 22,707$ -$ 22,000$ 707$
Liabilities:
Due to other governmental units 22,707$ -$ 22,000$ 707$
PUBLIC SAFETY TRAINING FACILITY
Assets:
Cash and investments 336,200$ 1,038,527$ 1,004,720$ 370,007$
Liabilities:
Accounts payable6,394$ 280,663$ 280,020$ 7,037$
Salaries payable10,161 242,032 239,143 13,050
Due to other governmental units 319,645 515,832 485,557 349,920
Total Liabilities 336,200$ 1,038,527$ 1,004,720$ 370,007$
PAYROLL
Assets:
Cash and investments 27,655$ 17,563,204$ 17,571,566$ 19,293$
Liabilities:
Accounts payable 27,655$ 17,563,204$ 17,571,566$ 19,293$
TOTALS - ALL AGENCY FUNDS
Assets:
Cash and investments 386,562$ 18,601,731$ 18,598,286$ 390,007$
Liabilities:
Accounts payable34,049$ 17,843,867$ 17,851,586$ 26,330$
Salaries payable10,161 242,032 239,143 13,050
Due to other governmental units 342,352 515,832 507,557 350,627
Total Liabilities 386,562$ 18,601,731$ 18,598,286$ 390,007$
95
This page left blank intentionally.
96
CITY OF EDINA, MINNESOTA
TAX CAPACITY, TAX LEVIES AND TAX CAPACITY RATES
(shown by year of tax collectibility)
2011 2012 2013 2014 2015
Total tax capacity113,981,017$ 109,012,566$ 106,529,983$ 108,069,277$ 117,907,214$
Increment valuation(4,043,859) (3,917,958) (4,194,083) (4,948,237) (1,618,920)
Contribution to fiscal
disparities pool(11,039,952) (10,283,433) (8,831,694) (9,513,808) (9,626,075)
Tax capacity used
for rate calculation98,897,206 94,811,175 93,504,206 93,607,232 106,662,219
Fiscal disparities distribution3,421,345 3,068,256 2,615,313 2,548,571 2,540,472
Adjusted net tax capacity102,318,551$ 97,879,431$ 96,119,519$ 96,155,803$ 109,202,691$
Tax levies:
General fund21,004,000$ 21,604,402$ 21,824,894$ 22,509,403$ 22,933,958$
Arts & culture fund- - - - 20,000
Equipment992,072 992,072 992,072 992,072 1,617,072
Debt service3,174,308 3,040,890 3,314,581 3,325,597 4,510,380
Total certified tax levies25,170,380 25,637,364 26,131,547 26,827,072 29,081,410
Referendum market value levy615,837 610,862 615,837 627,800 618,600
Total levy25,786,217$ 26,248,226$ 26,747,384$ 27,454,872$ 29,700,010$
Tax capacity rate:
General fund revenue21.548 23.131 23.762 24.458 22.477
Bonds & interest3.112 3.116 3.454 3.462 4.128
Total tax capacity rate24.660 26.247 27.216 27.920 26.605
Market value rate0.00654 0.00667 0.00690 0.00695 0.00631
97
CITY OF EDINA, MINNESOTA
COMBINED SCHEDULE OF BONDED INDEBTEDNESS
December 31, 2014
Final
InterestMaturityOriginal
RatesDateDateIssue Redeemed
General Obligation Bonds:
GO Park & Recreation Refunding Bonds,
Series 2005A3.50 - 4.0007/19/0502/01/175,375,000 3,165,000
GO Capital Improvement Plan, Series 2007A4.00 - 4.2505/24/0702/01/285,865,000 1,060,000
GO Capital Improvement Plan, Series 2009A3.00 - 4.4004/29/0902/01/3014,000,000 1,575,000
GO Capital Improvement Plan, Series 2010A2.00 - 4.0011/18/1002/01/218,285,000 2,045,000
GO Capital Improvement Plan, Series 2013A -
Refunding3.00 - 3.5010/10/1302/01/305,710,000 -
GO Refunding, Series 2014B 3.0012/11/1402/01/17- -
Total General Obligation Bonds 39,235,000 7,845,000
Permanent Improvement Revolving (PIR) Bonds:
GO Permanent Improvement Revolving
Series 2008B3.00 - 4.0008/28/0802/01/207,755,000 2,030,000
GO Permanent Improvement Revolving
Series 2010B2.00 - 3.0011/18/1002/01/222,305,000 210,000
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 Revolving
Series 2013A3.00 - 3.5010/10/1302/01/302,555,000 -
GO Permanent Improvement RevolvingSeries 2014B - Refunding2.00 - 3.0012/11/1402/01/20- -
Total PIR Bonds 20,600,000 2,240,000
Public Project Revenue Bonds:
Public Project Revenue, Series 20053.00 - 4.1309/13/0505/01/265,425,000 1,430,000
Taxable Public Project Revenue, Series 2009A2.10 - 4.5511/24/0902/01/302,595,000 950,000 HRA Public Project Revenue, Series 2014A 2.00 - 3.62507/15/1402/01/35- -
Total Public Project Revenue Bonds 8,020,000 2,380,000
Edina Emerald Energy Program Revenue Bonds:
Edina Emerald Energy Progrm Revenue, 2012A7.0002/25/1201/01/2333,690 3,369
Edina Emerald Energy Progrm Revenue, 2012B 5.5008/28/1201/01/1840,030 8,006
Total Public Project Revenue Bonds 73,720 11,375
Revenue Bonds:
Recreational Facility Bonds, Series 2009B2.00 - 3.0004/29/0901/01/172,010,000 1,690,000
Recreational Facility Bonds, Series 2009C2.00 - 4.0012/10/0902/01/302,440,000 280,000
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 - 3.4510/10/1302/01/291,125,000 -
Utility Revenue Bonds, Series 2007B4.0005/24/0702/01/178,210,000 4,575,000
Utility Revenue Bonds, Series 2008A3.00 - 4.0008/28/0802/01/1913,985,000 5,345,000
Utility Revenue Bonds, Series 2011A2.00 - 3.0010/27/1102/01/2211,230,000 965,000
Utility Revenue Bonds, Series 2012A3.00 - 4.0011/15/1202/01/236,100,000 -
Utility Revenue Bonds, Series 2014A2.00 - 3.0007/15/1402/01/24- -
Utility Revenue Bonds, Series 2014B - Refunding3.0012/11/1402/01/17- - Utility Revenue Bonds, Series 2014B - Refunding 3.0012/11/1402/01/19- -
Total Public Project Revenue Bonds 48,015,000 12,855,000
Total - Bonded indebtedness 115,943,720$ 25,331,375$
Prior Years
98
PrincipalInterestInterest
OutstandingPayableDueDuePayable
12/31/2013 Issued Payments 12/31/2014 In 2015 In 2015 to Maturity
2,210,000 - 515,000 1,695,000 1,695,000 33,900 33,900
4,805,000 - 240,000 4,565,000 250,000 181,944 1,445,729
12,425,000 - 555,000 11,870,000 570,000 435,724 4,172,231
6,240,000 - 675,000 5,565,000 705,000 208,500 814,900
5,710,000 - 310,000 5,400,000 270,000 156,675 1,398,088
- 1,105,000 - 1,105,000 - 21,179 54,404
31,390,000 1,105,000 2,295,000 30,200,000 3,490,000 1,037,922 7,919,252
5,725,000 - 720,000 5,005,000 5,005,000 94,747 94,747
2,095,000 - 215,000 1,880,000 220,000 43,400 203,875
3,320,000 - 300,000 3,020,000 305,000 71,550 381,100
2,675,000 - - 2,675,000 140,000 84,950 668,225
1,990,000 - 320,000 1,670,000 345,000 59,900 157,600
2,555,000 - - 2,555,000 - 76,000 695,326
- 4,075,000 - 4,075,000 - 72,482 348,258
18,360,000 4,075,000 1,555,000 20,880,000 6,015,000 503,029 2,549,131
3,995,000 - 235,000 3,760,000 245,000 147,344 997,941
1,645,000 - - 1,645,000 - 66,810 607,428 - 16,155,000 - 16,155,000 - 519,108 6,325,763
5,640,000 16,155,000 235,000 21,560,000 245,000 733,262 7,931,132
30,321 - 3,369 26,952 - 2,004 9,551
32,024 - 8,006 24,018 - 1,542 3,522
62,345 - 11,375 50,970 - 3,546 13,073
320,000 - 80,000 240,000 75,000 6,075 11,100
2,160,000 - 100,000 2,060,000 100,000 75,725 705,050
815,000 - 110,000 705,000 125,000 6,999 25,366
2,100,000 - - 2,100,000 - 53,794 687,091
1,125,000 - - 1,125,000 50,000 34,215 290,423
3,635,000 - 855,000 2,780,000 2,780,000 55,600 55,600
8,640,000 - 1,295,000 7,345,000 7,345,000 147,206 147,206
10,265,000 - 1,050,000 9,215,000 1,065,000 210,200 997,425
6,100,000 - 470,000 5,630,000 540,000 187,150 874,725
- 5,680,000 - 5,680,000 570,000 137,754 769,780
- 1,830,000 - 1,830,000 - 35,075 90,575 - 5,710,000 - 5,710,000 - 109,442 460,142
35,160,000 13,220,000 3,960,000 44,420,000 12,650,000 1,059,235 5,114,483
90,612,345$ 34,555,000$ 8,056,375$ 117,110,970$ 22,400,000$ 3,336,994$ 23,527,071$
2014
99
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, 2014
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 1,182,334 3,860 (886,194)
Other- - 61,068 - (61,068)
Total sources of funds:4,500,000 44,637,107 35,061,539 3,860 9,571,708
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 9,880,932 5,019 7,241,049
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- - 210,741 2,445 (213,186)
Administrative costs190,000 1,920,107 1,408,507 39,137 472,463
Total uses of funds:4,500,000 44,637,107 34,617,655 46,601 9,972,851
Funds remaining (deficit)-$ -$ 443,884$ (42,741)$ (401,143)$
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$
100
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, 2014
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 55,557,536 4,143,224 70,299,240
Real estate sales *5,000,000 9,137,070 11,637,070 - (2,500,000)
Interest on invested funds- 5,000,000 4,503,808 146,743 349,449
Interest on interfund loans- - - 400,000 (400,000)
Transfer in- - 38,646,971 - (38,646,971)
Sale of material- - 255,710 - (255,710)
Developer payments- - 297,826 135,510 (433,336)
Other- - 21,799 - (21,799)
Total sources of funds:126,400,000 144,137,070 144,682,397 4,825,477 (5,370,804)
Uses of funds:
Land acquisition13,900,000 30,000,000 22,981,425 1,553,288 5,465,287
Site improvements
and preparation26,677,000 15,000,000 17,446,630 - (2,446,630)
Other qualifying
improvements- 50,337,070 6,718,758 6,214,075 37,404,237
Bond payments:
Principal41,400,000 - 35,894,724 - (35,894,724)
Interest38,000,000 47,000,000 34,297,156 - 12,702,844
Administrative costs1,140,800 1,800,000 1,784,822 250,773 (235,595)
Paid to other governments- - 58,150 18,336 (76,486)
Loan/note interest- - 8,004,409 670,913 (8,675,322)
Parkland dedication fees- - 2,030,345 - (2,030,345)
Total uses of funds:121,117,800 144,137,070 129,216,419 8,707,385 6,213,266
Funds remaining (deficit)5,282,200$ -$ 15,465,978$ (3,881,908)$ (11,584,070)$
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$
This district made a $5,000,000 loan to Southdale 2 - No. 1208 in 2012 that will be repaid from tax increments
received by Southdale 2 - No. 1208 through 2021.101
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR 70TH STREET AND CAHILL ROAD DISTRICT-NO. 1207, A TAX INCREMENT FINANCING DISTRICT
December 31, 2014
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Bond proceeds1,911,000$ 1,911,000$ -$ -$ 1,911,000$
Tax increments received2,177,855 2,177,855 746,863 - 1,430,992
Interest on invested funds- - 309,171 3,068 (312,239)
Total sources of funds:4,088,855 4,088,855 1,056,034 3,068 3,029,753
Uses of funds:
Land acquisition529,400 529,400 49,279 - 480,121
Installation of public utilities
and improvements325,000 325,000 540,279 1,618 (216,897)
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 26,217 494,953
Total uses of funds:4,088,855 4,088,855 667,118 27,835 3,393,902
Funds remaining (deficit)-$ -$ 388,916$ (24,767)$ (364,149)$
102
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR SOUTHDALE 2-NO. 1208, A TAX INCREMENT FINANCING DISTRICT
December 31, 2014
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Tax increments received11,702,217$ 11,702,217$ 199,356$ 909,482$ 10,593,379$
Interest on invested funds250,000 250,000 456 5,274 244,270
Total sources of funds:11,952,217 11,952,217 199,812 914,756 10,837,649
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
Interest on interfund loans- - - 400,000 (400,000)
Paid to other governments- - - 2,827 (2,827)
Administrative costs1,100,000 1,100,000 1,074 77,788 1,021,138
Total uses of funds:11,952,217 11,952,217 5,002,865 480,615 6,468,737
Funds remaining (deficit)-$ -$ (4,803,053)$ 434,141$ 4,368,912$
A $5,000,000 loan was received from Southeast Edina Redevelopment District - No. 1203 in 2012 that will be
repaid from tax increments received by Southdale 2 - No. 1208 through 2021.
103
CITY OF EDINA, MINNESOTA
SCHEDULE OF SOURCES AND USES OF PUBLIC FUNDS
FOR PENTAGON PARK-NO. 1211, A TAX INCREMENT FINANCING DISTRICT
December 31, 2014
Accounted
OriginalAmendedfor inCurrentAmount
BudgetBudgetprior yearsyearremaining
Source of funds:
Tax increments received155,071,222$ 155,071,222$ -$ -$ 155,071,222$
Interest on invested funds15,507,122 15,507,122 - - 15,507,122
Total sources of funds:170,578,344 170,578,344 - - 170,578,344
Uses of funds:
Land acquisition1,000,000 1,000,000 - - 1,000,000
Site improvements
and preparation30,241,000 30,241,000 - - 30,241,000
Installation of public utilities
and improvements1,847,000 1,847,000 - - 1,847,000
Other qualifying
improvements41,950,669 41,950,669 - - 41,950,669
Interest80,032,553 80,032,553 - - 80,032,553
Administrative costs15,507,122 15,507,122 - 50,452 15,456,670
Total uses of funds:170,578,344 170,578,344 - 50,452 170,527,892
Funds remaining (deficit)-$ -$ -$ (50,452)$ 50,452$
104
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
106
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.
114
118
123
125
105
CITY OF EDINA, MINNESOTA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2005 2006 2007 2008
Governmental activities
Net investment in capital assets36,092,020$ 69,814,012$ 67,680,882$ 71,601,227$
Restricted78,943 - - 3,362,446
Unrestricted35,796,801 15,280,058 25,136,312 29,577,462
Total governmental
activities net position71,967,764$ 85,094,070$ 92,817,194$ 104,541,135$
Business-type activities
Net investment in capital assets40,044,169$ 46,981,755$ 43,046,160$ 46,851,736$
Restricted- - - 954,486
Unrestricted11,121,720 6,379,515 13,649,355 12,071,776
Total business-type
activities net position51,165,889$ 53,361,270$ 56,695,515$ 59,877,998$
Primary government
Net investment in capital assets76,136,189$ 116,795,767$ 110,727,042$ 118,452,963$
Restricted78,943 - - 4,316,932
Unrestricted46,918,521 21,659,573 38,785,667 41,649,238
Total primary government
net position123,133,653$ 138,455,340$ 149,512,709$ 164,419,133$
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
106
2009 2010 2011 2012 2013a 2014
69,622,370$ 69,783,162$ 75,045,018$ 78,644,392$ 83,842,970$ 85,708,114$
7,132,865 9,952,443 22,915,776 23,215,910 20,289,579 18,268,724
30,705,600 41,709,528 29,544,149 29,587,700 33,242,317 31,316,605
107,460,835$ 121,445,133$ 127,504,943$ 131,448,002$ 137,374,866$ 135,293,443$
47,333,794$ 48,807,806$ 56,877,100$ 63,766,144$ 66,126,387$ 75,803,672$
624,837 618,852 623,099 876,909 611,377 619,295
15,158,720 17,041,122 12,926,674 14,390,609 16,867,459 21,176,026
63,117,351$ 66,467,780$ 70,426,873$ 79,033,662$ 83,605,223$ 97,598,993$
116,956,164$ 118,590,968$ 131,922,118$ 142,410,536$ 149,969,357$ 161,511,786$
7,757,702 10,571,295 23,538,875 24,092,819 20,900,956 18,888,019
45,864,320 58,750,650 42,470,823 43,978,309 50,109,776 52,492,631
170,578,186$ 187,912,913$ 197,931,816$ 210,481,664$ 220,980,089$ 232,892,436$
Fiscal Year
107
CITY OF EDINA, MINNESOTA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2005 2006 2007 2008
Expenses
Governmental activities:
General government4,967,008$ 5,414,961$ 7,039,298$ 6,836,248$
Public safety12,019,027 13,300,351 13,743,194 14,833,647
Public works7,185,784 8,973,031 8,757,022 9,046,873
Parks5,901,648 5,341,682 5,025,560 5,971,565
Interest on long-term debt2,288,524 2,973,749 1,887,633 1,923,821
Total governmental activities expenses32,361,991 36,003,774 36,452,707 38,612,154
Business-type activities:
Utilities8,254,409 9,234,651 10,036,844 10,625,811
Liquor9,749,313 9,968,963 10,361,998 11,049,223
Aquatic center725,936 795,614 780,981 787,663
Golf course3,580,307 3,652,169 3,621,977 3,612,482
Arena1,497,431 1,542,098 1,538,407 1,689,660
Community activity centers2,328,131 2,506,551 2,630,127 2,813,189
Total business-type activities expenses26,135,527 27,700,046 28,970,334 30,578,028
Total primary government expenses58,497,518$ 63,703,820$ 65,423,041$ 69,190,182$
Program Revenues
Governmental activities:
Charges for services:
General government619,526$ 731,613$ 784,659$ 840,070$
Public safety5,614,406 6,146,114 5,632,642 5,839,683
Other activities630,157 793,796 736,329 763,130
Operating grants and contributions1,512,366 1,423,302 1,384,024 1,170,183
Capital grants and contributions2,252,491 4,013,617 4,299,509 7,710,015
Total governmental activities program revenues10,628,946 13,108,442 12,837,163 16,323,081
Business-type activities:
Charges for services:
Utilities10,240,381 11,421,474 13,125,773 13,713,249
Liquor10,752,724 11,029,445 11,436,175 12,122,599
Aquatic center849,380 867,626 868,833 925,388
Golf course3,482,999 3,646,620 3,630,538 3,680,584
Arena1,376,607 1,418,555 1,414,173 1,399,599
Community activity centers1,875,253 1,918,598 2,102,938 2,117,619
Operating grants and contributions131,408 122,358 127,492 147,456
Total business-type activities program revenues28,708,752 30,424,676 32,705,922 34,106,494
Total primary government program revenues39,337,698$ 43,533,118$ 45,543,085$ 50,429,575$
Net (Expense)/Revenue
Governmental activities(21,733,045)$ (22,895,332)$ (23,615,544)$ (22,289,073)$
Business-type activities2,573,225 2,724,630 3,735,588 3,528,466
Total primary government net expense(19,159,820)$ (20,170,702)$ (19,879,956)$ (18,760,607)$
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes19,071,202$ 20,414,298$ 21,459,001$ 22,242,276$
Tax increment collections7,060,744 7,228,002 7,793,577 8,578,434
Franchise taxes457,421 499,206 570,871 647,466
Lodging taxes- - - -
Unrestricted investment earnings977,956 1,230,264 1,581,702 1,185,899
Gain on disposal of capital assets63,674 8,418 58,377 1,265
Insurance recovery- - - -
Transfers841,500 838,230 919,625 967,800
Total governmental activities28,472,497 30,218,418 32,383,153 33,623,140
Business-type activities:
Property taxes-$ -$ -$ -$
Unrestricted investment earnings236,654 283,771 510,678 607,312
Gain (loss) on disposal of capital assets22,538 25,210 7,604 14,505
Transfers(841,500) (838,230) (919,625) (967,800)
Total business-type activities(582,308) (529,249) (401,343) (345,983)
Total primary government27,890,189$ 29,689,169$ 31,981,810$ 33,277,157$
Change in Net Position
Governmental activities6,739,452$ 7,323,086$ 8,767,609$ 11,334,067$
Business-type activities1,990,917 2,195,381 3,334,245 3,182,483
Total primary government8,730,369$ 9,518,467$ 12,101,854$ 14,516,550$
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.
b The City completed a major departmental reorganization in 2014, moving parks maintenance activities from parks to public works. Prior year
information has not been modified as a result of this change.
Fiscal Year
108
2009 2010 2011 2012 2013a 2014b
7,362,560$ 6,961,082$ 7,013,231$ 12,598,979$ 8,256,261$ 8,522,319$
14,751,479 15,543,594 16,024,575 16,598,423 17,117,693 18,145,498
8,993,290 8,558,363 9,193,336 9,437,285 11,502,250 15,553,852
7,732,777 5,608,758 5,540,585 5,904,724 6,132,709 3,330,781
2,129,490 2,528,424 2,339,370 2,222,392 2,024,749 1,989,863
40,969,596 39,200,221 40,111,097 46,761,803 45,033,662 47,542,313
11,833,994 11,848,538 12,130,685 12,610,875 13,748,186 14,207,197
11,449,194 11,594,643 11,727,106 11,740,744 12,261,413 12,393,218
798,369 769,608 718,027 866,944 822,932 827,485
3,588,831 3,561,573 3,390,949 3,293,192 3,199,815 3,342,544
1,665,082 1,527,536 1,689,001 2,182,200 2,272,510 2,375,173
2,971,293 2,965,243 2,998,915 2,842,139 2,967,115 2,975,782
32,306,763 32,267,141 32,654,683 33,536,094 35,271,971 36,121,399
73,276,359$ 71,467,362$ 72,765,780$ 80,297,897$ 80,305,633$ 83,663,712$
811,087$ 946,107$ 969,745$ 1,142,984$ 1,259,908$ 1,529,555$
5,081,563 5,448,505 5,988,485 6,549,929 7,410,755 8,102,352
804,500 723,559 775,676 913,864 846,999 960,261
1,377,785 1,162,411 1,392,892 1,685,026 2,283,007 1,578,538
2,582,999 13,325,431 5,770,912 9,137,011 6,372,735 8,244,695
10,657,934 21,606,013 14,897,710 19,428,814 18,173,404 20,415,401
14,858,488 15,036,016 15,873,937 17,729,589 17,831,225 17,550,802
12,655,777 12,857,064 13,172,484 13,230,941 13,711,557 13,515,168
859,816 945,529 913,383 1,001,946 928,055 918,412
3,660,466 3,443,204 3,285,741 3,225,591 2,711,743 3,229,348
1,414,410 1,301,506 1,315,435 1,452,435 1,942,971 2,092,567
2,192,274 2,194,476 2,331,136 2,399,090 2,625,633 2,583,257
135,917 373,230 135,428 1,042,195 516,242 428,416
35,777,148 36,151,025 37,027,544 40,081,787 40,267,426 40,317,970
46,435,082$ 57,757,038$ 51,925,254$ 59,510,601$ 58,440,830$ 60,733,371$
(30,311,662)$ (17,594,208)$ (25,213,387)$ (27,332,989)$ (26,860,258)$ (27,126,912)$
3,470,385 3,883,884 4,372,861 6,545,693 4,995,455 4,196,571
(26,841,277)$ (13,710,324)$ (20,840,526)$ (20,787,296)$ (21,864,803)$ (22,930,341)$
23,834,274$ 25,122,113$ 25,040,871$ 25,884,662$ 26,894,161$ 27,062,224$
7,587,386 4,488,073 4,083,345 3,536,935 3,981,938 5,052,705
667,791 692,288 722,160 815,530 1,891,967 2,055,396
- - - - - 11,301
387,177 474,444 601,250 341,986 (96,390) 440,051
11,709 35,594 131,365 - 16,654 29,037
- - - - 816,654 -
743,025 765,994 694,206 696,935 133,907 (9,605,225)
33,231,362 31,578,506 31,273,197 31,276,048 33,638,891 25,045,489
300,372$ -$ -$ -$ -$ -$
209,371 205,965 280,438 113,177 (77,848) 191,974
2,250 26,574 - 2,644,854 17,587 -
(743,025) (765,994) (694,206) (696,935) (133,907) 9,605,225
(231,032) (533,455) (413,768) 2,061,096 (194,168) 9,797,199
33,000,330$ 31,045,051$ 30,859,429$ 33,337,144$ 33,444,723$ 34,842,688$
2,919,700$ 13,984,298$ 6,059,810$ 3,943,059$ 6,778,633$ (2,081,423)$
3,239,353 3,350,429 3,959,093 8,606,789 4,801,287 13,993,770
6,159,053$ 17,334,727$ 10,018,903$ 12,549,848$ 11,579,920$ 11,912,347$
Fiscal Year
109
CITY OF EDINA, MINNESOTA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2005 2006 2007 2008
General fund
Reserved223,351$ 36,849$ 28,637$ 13,982$
Unreserved11,595,433 13,797,189 14,078,220 14,365,021
Nonspendable- - - -
Restricted- - - -
Assigned- - - -
Unassigned- - - -
Total general fund11,818,784$ 13,834,038$ 14,106,857$ 14,379,003$
All other governmental funds
Reserved13,792,312$ 2,682,238$ 6,247,539$ 8,467,918$
Unreserved, reported in:
Special revenue funds731,027 13,179,904 14,750,448 14,950,538
Capital projects funds17,032,750 3,160,085 5,853,322 4,270,440
Restricted, reported in:
Special revenue funds- - - -
Debt service funds- - - -
Construction funds- - - -
Assigned, reported in:
Capital projects funds- - - -
Total all other governmental funds31,556,089$ 19,022,227$ 26,851,309$ 27,688,896$
a 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.
b 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.c The substantial increase in other governmental funds restricted fund balance in 2014 is due to
unspent bond proceeds related to the current refunding that will take place on February 1, 2015.
Fiscal Year
110
2009a 2010 2011b 2012 2013 2014c
18,241$ 10,258$ -$ -$ -$ -$
12,031,358 12,868,952 - - - -
- - 10,871 413,200 13,322 240,291
- - 178,295 880,395 185,395 757,673
- - 1,539,286 1,643,077 1,559,461 1,566,329
- - 11,744,764 11,902,462 12,573,457 11,429,444
12,049,599$ 12,879,210$ 13,473,216$ 14,839,134$ 14,331,635$ 13,993,737$
15,223,353$ 9,460,834$ -$ -$ -$ -$
12,813,439 15,333,460 - - - -
6,683,668 12,150,968 - - - -
- - 17,178,857 13,185,962 13,040,516 9,719,309
- - 8,068,183 9,704,408 6,246,769 12,678,291
- - 2,087,548 2,759,463 3,318,947 6,598,832
- - 8,098,935 7,159,890 8,354,268 7,046,610
34,720,460$ 36,945,262$ 35,433,523$ 32,809,723$ 30,960,500$ 36,043,042$
Fiscal Year
111
CITY OF EDINA, MINNESOTA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2005 2006 2007a 2008
Revenues
General property taxes19,071,202$ 20,414,298$ 21,459,001$ 22,242,276$
Tax increment collections7,060,744 7,228,002 7,793,577 8,578,434
Special assessments1,354,264 1,751,219 1,750,444 2,442,490
Franchise taxes457,421 499,206 570,871 647,466
Lodging fees- - - -
License and permits3,240,622 3,488,897 2,909,521 2,915,455
Intergovernmental1,539,169 2,773,350 3,699,006 3,005,883
Charges for services2,466,663 2,691,354 2,748,709 3,093,941
Fines and forfeitures742,917 1,023,935 971,486 1,073,174
Investment income977,956 1,230,264 1,581,702 1,185,899
Rental of property315,542 310,145 355,734 255,607
Parkland dedication- - - -
Other revenues227,446 246,797 225,839 126,723
Total revenues37,453,946 41,657,467 44,065,890 45,567,348
Expenditures
General government5,477,308 5,995,804 6,544,307 6,235,352
Public safety11,373,763 12,431,114 12,985,215 13,788,797
Public works4,882,811 5,233,907 5,787,619 6,189,594
Parks3,146,029 3,300,375 3,455,789 3,693,595
Capital outlay8,227,191 8,980,526 11,991,122 14,666,907
Debt service
Principal6,830,000 5,985,000 6,190,000 7,090,000
Interest and other charges2,543,639 2,107,036 1,677,770 1,967,021
Total expenditures42,480,741 44,033,762 48,631,822 53,631,266
Revenues over (under) expenditures(5,026,795) (2,376,295) (4,565,932) (8,063,918)
Other Financing Sources (Uses)
Transfers in7,797,369 6,865,258 7,290,391 7,983,585
Transfers out(6,955,869) (6,027,028) (6,370,766) (7,015,785)
Sale of capital assets135,045 54,457 66,845 96,825
Insurance recovery- - - -
Bonds issued15,816,165 - 11,735,000 7,755,000
Premium on bonds issued- - - -
Discount on bonds issued(36,275) - (53,637) (35,848)
Refunding bonds issued16,764,721 - - -
Payment to refunding escrow(16,635,000) - - -
Principal paid by escrow- (9,035,000) - -
Total other financing sources (uses)16,886,156 (8,142,313) 12,667,833 8,783,777
Net change in fund balances11,859,361$ (10,518,608)$ 8,101,901$ 719,859$
Debt service as a percentage of
noncapital expenditures27.4%23.1%21.5%22.6%
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
112
2009 2010 2011 2012 2013 2014
23,834,274$ 25,122,113$ 24,972,166$ 25,838,422$ 26,891,756$ 26,988,493$
7,587,386 4,488,073 4,083,345 3,536,935 3,981,938 5,052,705
2,703,833 6,746,186 4,502,112 4,975,641 4,884,510 4,606,010
667,791 692,288 722,160 815,530 1,891,967 2,055,396
- - - - - 11,301
2,104,967 2,410,314 2,724,763 3,155,351 4,150,512 4,583,183
1,507,170 3,726,849 3,059,964 2,032,966 2,509,166 3,961,509
2,905,410 3,014,894 3,181,961 3,708,482 3,667,612 4,270,720
1,224,983 1,203,767 1,243,426 1,195,054 1,109,710 1,163,907
387,177 474,444 601,250 341,986 (96,390) 440,051
343,616 426,517 539,091 506,276 518,862 546,874
- - - 702,100 - 757,278
160,035 413,400 156,231 240,841 278,607 78,775
43,426,642 48,718,845 45,786,469 47,049,584 49,788,250 54,516,202
6,895,329 6,523,398 5,739,481 6,624,573 7,351,556 7,625,826
13,692,686 14,177,387 14,668,772 14,985,068 15,859,622 16,647,821
5,911,758 5,898,023 6,000,539 6,277,506 7,018,614 10,201,335
3,688,063 3,524,950 3,633,922 3,852,260 3,915,568 1,341,884
22,997,065 13,505,827 14,235,496 13,622,443 10,690,207 19,883,144
7,415,000 2,975,000 4,480,000 6,620,000 14,531,375 4,096,375
1,841,342 2,584,006 2,278,068 2,292,394 2,270,259 1,923,647
62,441,243 49,188,591 51,036,278 54,274,244 61,637,201 61,720,032
(19,014,601) (469,746) (5,249,809) (7,224,660) (11,848,951) (7,203,830)
11,347,773 2,903,762 5,615,669 4,495,940 3,472,964 1,404,975
(10,604,748) (2,137,768) (4,921,463) (3,799,005) (3,339,057) (11,010,200)
34,592 134,329 209,773 94,975 61,642 70,603
- - - - 816,654 -
22,950,000 2,535,000 3,320,000 2,748,720 2,555,000 16,155,000
64,765 898,658 108,097 436,148 275,360 327,987
(75,621) - - - (60,334) (179,891)
- 8,285,000 - 1,990,000 5,710,000 5,180,000
- (9,094,822) - - - -
- - - - - -
23,716,761 3,524,159 4,332,076 5,966,778 9,492,229 11,948,474
4,702,160$ 3,054,413$ (917,733)$ (1,257,882)$ (2,356,722)$ 4,744,644$
21.7%15.4%17.8%19.4%32.2%13.7%
Fiscal Year
113
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
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
9,065,550 9,065,550 8,911,695 108,069 93,607 96,156 27.920%0.00695%2.961
Source: Hennepin County Taxpayer Services.
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.
2014
Year
2012
2013
Estimated
Rate b
Market Value (In Thousands) a Tax Capacity (In Thousands)
2011
Fiscal Direct
2009
2010
2005
2006
2007
2008
114
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING TAX CAPACITY RATES
LAST TEN FISCAL YEARS
Total
BasicDebtTotal TaxDirect &
RateRateCapacity RMVHennepinTax Cap.RMVOther Overlap
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%
24.458%3.462%27.920%0.007%49.959%27.556%0.223%12.051%117.486%
Source: Hennepin County Taxpayer Services.
RMV: Referendum Market Value
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
2014
2009
2010
2005
2006
2007
2008
2011
2012
2013
115
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$ 12.32%3,483,870$ 13.82%
Galleria Shopping Center1,978,800 21.83%1,525,904 21.67%
Centennial Lakes Retail788,526 30.73%- 0.00%
Centennial Lakes Phase V704,848 40.65%543,824 40.60%
Southdale Office Park701,274 50.65%717,250 30.79%
Centennial Lakes Phase IV691,196 60.64%533,268 50.58%
Southdale Medical Building620,285 70.57%343,884 70.38%
National Car508,794 80.47%- 0.00%
Centennial Lakes Phase III439,470 90.41%333,360 90.37%
Target439,250 100.41%- 0.00%
May Department Stores- 0.00%343,044 80.38%
7700 France- 0.00%463,742 60.51%
Centennial Lakes Phase II- 0.00%322,194 100.35%
Totals9,379,253$ 8.68%8,610,340$ 9.43%
Source: City of Edina Assessing Office
20052014
Taxpayer
116
CITY OF EDINA, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
TotalCollections in
TaxPercentageSubsequentPercentage
LevyAmountof LevyYearsAmountof Levy
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 69,437 23,553,574 97.51%
25,492,973 24,904,346 97.69%(309,996) 24,594,350 96.48%
25,786,217 25,067,625 97.21%(204,058) 24,863,567 96.42%
26,248,226 25,983,685 98.99%(132,527) 25,851,158 98.49%
26,747,384 26,545,984 99.25%(143,425) 26,402,559 98.71%
27,454,872 27,326,092 99.53%- 27,326,092 99.53%
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
2009
2010
2014
Collected within the
Fiscal Year of the Levy
2008
2005
2006
2007
2012
2011
2013
117
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
DebtRevenueBondsRevolvingBondsBondsBondsGovernmentIncomeCapitaa
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 2.91%1,885
30,806 21,445 - 21,554 51 6,249 39,633 119,738 4.05%2,433
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.
a Population data from U.S. Census Bureau/Metropolitan Council found on page 123.
Business-Type Activities
Year
Fiscal
2014
2005
2006
2007
2008
2011
2012
2009
2010
2013
Governmental Activities
118
CITY OF EDINA, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
Less: Amounts AvailablePercentage of
General Obligation Debt a in Debt Service Fund b TotalProperty Value c Per Capita
11,786$ 11,015$ 771$ 0.01%248$
5,687 2,194 3,493 0.04%121
10,963 2,891 8,072 0.08%233
10,393 3,669 6,724 0.07%216
24,057 5,454 18,603 0.18%499
32,595 6,105 26,490 0.27%680
30,417 8,068 22,349 0.24%630
28,318 9,704 18,614 0.20%580
32,035 6,247 25,788 0.29%651
30,806 12,678 18,128 0.20%626
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 This is the amount restricted for debt service principal payments.
c See statistical schedule titled "Assessed Value, Actual Value and Tax Capacity of Taxable Property" for
estimated property value data.
Year
Fiscal
2009
2014
2012
2011
2010
2005
2006
2007
2008
2013
119
CITY OF EDINA, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF DECEMBER 31, 2014
Net GeneralPercentage
Obligation Bonded ApplicableCity Share
Debt Outstanding in City a of Debt
Overlapping Debt:
Hennepin County753,266,880$ 7.87%59,282,103$
Hennepin Suburban Park District52,209,049 10.73%5,602,031
Hennepin Regional Rail Authority35,200,157 10.73%3,776,977
School Districts:
ISD No. 273 (Edina)59,987,919 98.62%59,160,086
ISD No. 270 (Hopkins)160,989,283 7.74%12,460,571
ISD No. 271 (Bloomington)23,157,546 0.02%4,632
ISD No. 272 (Eden Prairie)52,979,520 0.98%519,199
ISD No. 280 (Richfield)19,690,000 30.44%5,993,636
ISD No. 283 (St. Louis Park)48,184,573 0.01%4,818
Metro Council93,953,739 4.04%3,795,731
Total Overlapping Debt1,299,618,666 150,599,784
City of Edina73,856,996 100.00%73,856,996
Total Overlapping and Direct Debt1,373,475,662$ 224,456,780$
Ratio of debt per capita (49,216 population)4,561$
Ratio of debt to estimated market valuation of $9,065,549,6002.48%
Source: Hennepin County Taxpayer Services
a The percentage of overlapping debt applicable is estimated using tax capacity. Applicable percentages
were estimated by determining the portion of another governmental unit's tax capacity that is within
the City's boundaries and dividing it by each unit's total tax capacity.
Direct Debt:
Debt Ratios:
120
CITY OF EDINA, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(dollars in thousands)
2005 2006 2007 2008a 2009 2010 2011 2012 2013 2014
Debt limit 173,867$ 191,974$ 199,775$ 302,385$ 301,369$ 298,494$ 282,958$ 270,767$ 263,958$ 267,351$
Total net debt
applicable
to limit 29,785 21,750 26,380 25,095 46,670 45,170 42,860 39,545 37,030 51,760
Legal debt
margin 144,082$ 170,224$ 173,395$ 277,290$ 254,699$ 253,324$ 240,098$ 231,222$ 226,928$ 215,591$
Total net debt
applicable to
the limit as a
percentage of
debt limit 17.13%11.33%13.20%8.30%15.49%15.13%15.15%14.60%14.03%19.36%
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.
267,350,840
21,560,000
215,590,840$
Fiscal Year
8,911,694,683$
30,200,000
51,760,000
Legal Debt Margin Calculation for Fiscal Year 2014
121
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)
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
20141,356,844 - 1,356,844 235,000 223,754 458,754 2.96
Tax Increment Bonds
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
20145,052,706 - 5,052,706 - - - -
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
20142,870,102 - 2,870,102 1,555,000 548,927 2,103,927 1.36
Utility Bond
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
201417,548,883 13,443,940 4,104,943 3,670,000 884,075 4,554,075 0.90
Recreational Facility Bonds
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)
20146,239,445 6,358,030 (118,585) 290,000 176,197 466,197 (0.25)
Debt service requirementsFiscal
Year
122
CITY OF EDINA, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Estimated
PersonalPer CapitaHigh School
IncomePersonalGraduationUnemployment
Population(In thousands)IncomeRateRate
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%
49,2163,193,922 64,896 97.7%3.98%
49,2162,955,913 60,060 97.8%3.10%
Sources:
Population data from U.S. Census Bureau/Metropolitan Council. 2013 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. 2013 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.
2014
2011
2012
Fiscal
Year
2010
2009
2008
2007
2006
2005
2013
123
CITY OF EDINA, MINNESOTA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total City Total City
EmployeesRankEmployment EmployeesRankEmployment
Fairview Southdale Hospital2,613 110.98%2,500 211.19%
Edina Public Schools ISD #2731,860 27.81%1,172 45.24%
City of Edina811 33.41%262 71.17%
BI Worldwide600 42.52%DNADNADNA
Regis Corporation600 52.52%DNADNADNA
Barr Engineering453 61.90%DNADNADNA
Lund Food Holdings, Inc405 71.70%DNADNADNA
International Dairy Queen Inc.400 81.68%300 61.34%
Edina Realty400 91.68%210 90.94%
FilmTec Corporation375 101.58%DNADNADNA
Macy's (Marshall Field's or Dayton's)- 0.00%1,200 35.37%
Jerry's Enterprises, Inc.- 0.00%4,500 120.13%
Con Agra Foods- 0.00%196 100.88%
JC Penny Co.- 0.00%250 81.12%
Nash Finch Co.- 0.00%350 51.57%
Totals8,517 35.78%10,940 48.95%
Sources:
2014 data from ReferenceUSA, written and telephone survey (October 2014) done by Ehlers,
and the Minnesota Department of Employment and Economic Development.
2005 data from previous CAFR.
DNA: Historical data is not available
20052014
Employer
124
CITY OF EDINA, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008 2009 2010 2011 2012 b 2013 b 2014 b
Administration
General Fund9.25 9.25 9.25 9.25 9.25 9.25 9.25 6.85 5.85 4.85
HRA Fund- - - - - - - - - 1.00
Liquor Fund9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00
Communications and Technology Services
General Fund1.00 1.00 2.00 2.00 3.00 3.00 3.50 4.65 5.15 6.15
Central Services2.00 2.00 3.00 3.00 3.00 3.00 5.00 5.00 5.00 5.00
Community Development
General Fund10.75 10.75 10.75 10.75 10.85 10.85 10.85 10.85 10.85 12.00
Engineering
General Fund7.50 7.50 8.50 8.50 8.50 8.50 8.50 10.50 12.00 12.00
Finance
General Fund5.50 5.50 5.50 5.50 5.50 5.50 5.25 5.25 5.25 6.00
Utilities Fund1.75 1.75 1.75 1.75 2.75 2.75 2.00 2.00 1.00 1.00
Liquor Fund0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 -
Fire Protection
General Fund38.50 38.50 40.50 40.50 40.50 40.50 39.50 39.75 42.75 42.85
Utilities Fund0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25
Human Resources
General Fund- - - - - - - 1.00 4.00 4.00
Parks & Recreation
General Fund6.80 6.80 6.80 6.80 6.80 6.80 6.80 6.80 8.00 7.00
Aquatic Center0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55
Golf Course13.00 13.00 13.00 13.00 13.00 13.00 11.00 12.00 12.00 12.00
Arena6.00 6.00 6.00 6.00 5.00 5.00 5.00 5.00 5.00 5.00
Art Center2.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Edinborough Park7.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 5.80 5.80
Centennial Lakes5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Police Protection
General Fund72.75 72.75 73.75 73.75 74.65 73.65 71.15 71.65 70.65 72.50
Utilities Fund0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
Public Works
General Fund48.40 48.40 48.40 48.40 47.40 47.40 47.20 48.20 46.40 43.35
Construction Fund1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Utilities Fund13.25 13.25 13.25 13.25 15.25 15.25 14.45 13.95 13.75 15.20
Central Services8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 8.50 11.00
Other - - 1.00 1.00 1.00 1.00 - - - -
Total 271.50 270.00 278.00 278.00 281.00 280.00 274.00 278.00 281.00 285.00
Source: City of Edina 2014-2015 Budget
a Full-time employee counts do not include Council members, part-time, contract or seasonal employees. In a typical
year the City will employ an additional 600-700 people in these categories.
b The City completed a major departmental reorganization that is reflected on this chart between years 2012-2014.
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
125
CITY OF EDINA, MINNESOTA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General Government
Total City employees909 887 890 918 885 869 892 989 1,040 1,093
Votes cast a 1,367 26,270 7,930 31,512 2,733 25,463 7,957 31,841 3,480 24,049
Public Works
Asphalt placed (tons)- 9,000 8,000 7,500 9,500 7,643 8,500 9,000 9,273 8,383
Concrete (cu. yds.)- 650 850 480 640 503 558 667 560 396
Public Safety
Crimes reported1,908 1,937 2,010 2,025 1,985 1,890 1,590 1,628 1,594 NA
Fire calls1,055 963 1,012 913 852 910 960 858 893 926
Medical calls3,423 3,470 3,510 3,516 3,496 3,599 3,652 3,946 3,803 3,982
Central Services
Vehicle fixes- 2,398 2,460 2,967 2,539 2,431 2,331 2,546 3,493 3,277
Utilities
Daily consumption b - 7,209 7,372 7,376 7,596 6,790 6,909 7,613 6,652 6,489
Aquatic Center
Attendance139,415 120,406 114,173 110,000 64,836 86,654 77,696 139,909 91,340 92,200
Golf Course
Total rounds played113,679 114,737 112,821 112,663 117,819 101,314 95,771 96,496 79,529 85,231
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
126
CITY OF EDINA, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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 19 19 19 18 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 13,933 13,933 13,933 13,979 13,979 13,979
Arena
Ice sheets3 3 3 3 3 3 3 3 3 3
Source: Various City departments
Fiscal Year
Function
127