2024 Annual Financial Report2024
Annual Comprehensive
Financial Report
For the Fiscal Year Ended December 31, 2024 City of Chanhassen, Minnesota
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CITY OF CHANHASSEN, MINNESOTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2024
PREPARED BY
FINANCE DEPARTMENT
Member of the Government Finance Officers Association
of the United States and Canada
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City of Chanhassen, Minnesota
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended December 31, 2024
Page No.
Introductory Section
Letter of Transmittal from Finance Director 11
Certificate of Achievement for Excellence in Financial Reporting 17
Organization Chart 18
Elected and Appointed Officials 19
Financial Section
Independent Auditor’s Report 23
Management’s Discussion and Analysis 27
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 43
Statement of Activities 44
Fund Financial Statements
Governmental Funds
Balance Sheet 48
Reconciliation of the Balance Sheet to the Statement of Net Position 49
Statement of Revenues, Expenditures and Changes in Fund Balances 50
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances to the Statement of Activities 51
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 53
Proprietary Funds
Statement of Net Position 54
Statement of Revenues, Expenses and Changes in Net Position 57
Statement of Cash Flows 58
Notes to the Financial Statements 61
Required Supplementary Information
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
General Employees Retirement Plan 102
Schedule of Employer’s Public Employees Retirement Association Contributions -
General Employees Retirement Plan 102
Notes to the Required Supplementary Information - General Employees Retirement Fund 103
Schedule of Employer’s Share of Public Employees Retirement Association Net Pension Liability -
Public Employees Police and Fire Plan 105
Schedule of Employer’s Public Employees Retirement Association Contributions -
Public Employees Police and Fire Plan 105
Notes to the Required Supplementary Information - Public Employees Police and Fire Plan 106
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios 108
Notes the Required Supplementary Information - Fire Relief Association 109
Schedule of Employer’s Fire Relief Association’s Contributions 110
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios 110
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City of Chanhassen, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2024
Page No.
Combining and Individual Fund Financial Statements and Schedules
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to Actual 113
Nonmajor Governmental Funds
Combining Balance Sheet 120
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 121
Nonmajor Special Revenue Funds
Combining Balance Sheet 124
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 125
Charitable Gambling Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 126
Cemetery Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 127
Cable Television Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 128
Grant Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 129
Nonmajor Debt Service Funds
Combining Balance Sheet 132
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 133
2016A G.O. Refunding Bonds Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 134
Nonmajor Capital Projects Funds
Combining Balance Sheet 136
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 138
Capital Equipment/Vehicle Replacement Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 140
Capital Facilities Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 141
Park Development Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 142
Transportation Infrastructure Management Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 143
Frontier Development TIF #11 Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 144
Lake Place Senior Apt TIF #12 Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 145
PMP Pavement Management Capital Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 146
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City of Chanhassen, Minnesota
Annual Comprehensive Financial Report
Table of Contents (Continued)
For the Year Ended December 31, 2024
Table No. Page No.
Statistical Section (Unaudited)
Financial Trends
Net Position by Component 1 150
Changes in Net Position 2 152
Fund Balances of Governmental Funds 3 156
Changes in Fund Balances of Governmental Funds 4 158
Revenue Capacity
Tax Capacity and Estimated Market Value of Property 5 160
Property Tax Rates - Direct and Overlapping Governments 6 162
Principal Property Taxpayers 7 163
Property Tax Levies and Tax Collections 8 165
Debt Capacity
Ratios of Outstanding Debt by Type 9 166
Ratios of General Bonded Debt Outstanding 10 168
Computation of Direct and Overlapping Debt 11 171
Legal Debt Margin Information 12 172
Pledged-revenue Coverage 13 174
Demographic and Economic Information
Demographic and Economic Statistics 14 175
Principal Employers 15 176
Operating Information
Full-time Equivalent City Government Employees by Function 16 178
Operating Indicators by Function 17 180
Capital Asset Statistics by Function 18 182
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INTRODUCTORY SECTION
CITY OF CHANHASSEN
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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May 13, 2025
To the Citizens of the City of Chanhassen, Honorable Mayor and City Council Members,
and Ms. Laurie Hokkanen, City Manager
The Annual Comprehensive Financial Report of the City of Chanhassen, Minnesota (the “City”) for the
fiscal year ended December 31, 2024, is hereby submitted. The report was prepared in accordance with
accounting principles generally accepted in the United States of America (GAAP) as established by the
Government Accounting Standards Board and meets the requirements of the Minnesota State Auditor’s
Office.
This report consists of management’s representations concerning the finances of the City. Consequently,
management assumes full responsibility for the completeness and reliability of all the information
presented in this report. To provide a reasonable basis for making these representations, management of
the City has established a comprehensive internal control framework that is designed both to protect the
City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation
of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should
not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to
provide reasonable, rather than absolute assurance that the financial statements will be free from material
misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City’s financial statements have been audited by Abdo, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the fiscal year ended December 31, 2024, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial presentation. Based upon the audit, the independent
auditor concluded that there was reasonable basis for rendering an unmodified opinion that the City’s
financial statements for the fiscal year ended December 31, 2024, are fairly presented in conformity with
GAAP. The independent auditor’s report is presented as the first item in the financial section of this
report.
GAAP requires the management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. The
MD&A can be found in the financial section of this report, immediately following the report of the
independent auditors.
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City Profile
The City of Chanhassen strives to be "A Community for Life.” Our vision is that Chanhassen is a safe,
welcoming community with engaged residents, abundant natural amenities, and vibrant businesses,
supported by valued services that make this a community for life. Our mission is to serve the public. We
do this through the delivery of reliable, cost-effective services designed to provide a safe, sustainable
community. Our core values are innovation, respect, stewardship, and engagement.
The City of Chanhassen, Minnesota, a suburban community located southwest of the Twin Cities
metropolitan area, is situated primarily in eastern Carver County with a small portion in Hennepin
County. The City encompasses an area of 22.8 square miles. Chanhassen enjoys an excellent location,
with convenient access to the Minneapolis-Saint Paul metropolitan area via U.S. Highway 212, and State
Highways 5 and 7. State Highways 41 and 101 provide access to the north and south.
The village of Chanhassen was organized in 1896. In 1967 the village of Chanhassen and Chanhassen
Township merged to become the City of Chanhassen. The City of Chanhassen operates as a statutory Plan
B or Council-Manager form of government in Minnesota. Plan B cities have an elected mayor and council
members with an appointed City Manager. The City Manager oversees administrative duties for the City
while the Mayor and Council maintain traditional policy-making roles.
With a staff of about 86 regular, full-time employees, the City of Chanhassen provides a full range of
services, including police and fire protection; building inspections; construction and maintenance of
highways, streets, and other infrastructure; recreational activities and cultural events; and general
administrative services. The City also operates three enterprises: water, sewer, and surface water
management.
The City is also financially accountable for the Chanhassen Economic Development Authority (EDA),
which is included in this report as a blended component unit. The Chanhassen City Council serves as the
board of the EDA.
The Chanhassen Fire Relief Association is a separate legal entity and accordingly is excluded from this
report.
Strategic Priorities
The City of Chanhassen 2021-2024 Strategic Plan consists of five strategic priorities. Associated with
each priority is a set of desired outcomes, key outcome indicators, and performance targets, describing
expected results and how the results will be measured.
The five strategic priorities (with desired outcomes) are:
•Financial Sustainability
o Financial stability in all funds
o Financial policies guide decision making
o Financial systems produce timely, accurate, and meaningful information
•Asset Management
o Effective utilization and protection of assets
o Ability to pay for critical assets
o Assets adequate to support adopted levels of service
•Development and Redevelopment
o Diversity in new development
o Redevelopment consistent with our vision
o New innovative places and spaces
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•Operational Excellence
o Satisfied workforce
o A competent workforce
o Improved operational effectiveness, including through the use of technology and innovation
•Communications
o Improved understanding of City operations
o Improved internal communication
o Improved communication with outside organizations
Annual Budget
The annual budget serves as the foundation for the City of Chanhassen’s financial planning and control.
The objectives of these budgetary controls are to ensure compliance with legal provisions embodied in the
annual appropriated budget approved by the Chanhassen City Council. Activities of the General Fund and
certain special revenue, debt service, capital project, and enterprise funds are included in the annual
budget.
The level of budgetary control (that is, the level at which expenditures cannot legally exceed the
appropriated amount) is established at the fund level. Expenditures for departments or divisions that
exceed appropriations are not authorized unless additional revenue sources or fund balance are identified
and available. Unused appropriated expenditures lapse at year-end.
The City maintains stable financial operations due to a history of conservative budgeting, maintenance of
healthy reserves, and a lack of reliance on state aid.
Economic Condition and Outlook
The City has grown steadily since incorporating in 1967. The chart below shows population counts from
the U.S. Census through 2020 and forecasts from the Metropolitan Council for 2030, 2040, and 2050:
Forecasted employment and annual average wages continue to grow in the City according to the
Minnesota Department of Employment and Economic Development, which surveys quarterly
employment and wages in the state. Employment of 15,460 in 2022 and is expected to increase to 16,610
by 2030 and 18,320 by 2040. Average annual wages in 2022 were $73,372, up from $46,265 in 2010.
Average annual unemployment is low for Chanhassen residents, coming in at 2.2% in 2023 and 2.5% in
2024.
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1970 1980 1990 2000 2010 2020 2030 2040 2050
Chanhassen Population
Census
Forecast
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The City continues to see steady building permit activity and expects to see continuous growth into the
future. The Avienda Project, located near Highway 212 and Powers Boulevard is underway. The project
includes a mix of high-quality detached villa homes, multi-family and senior living residential facilities,
office, medical and professional services, retail, entertainment, restaurants, and hospitality.
The following chart summarizes the City’s annual market value since 2012.
The City has entered into tax abatement agreements for projects that, but for City assistance, would not
have occurred. The City currently has two pay-as-you-go (PAYGO) tax increment notes to reimburse
developers, which are outlined in the notes to the basic financial statements. The benefit to the City is
elimination of blighted and underutilized areas, job creation, and increased tax base in the future years.
The table below shows the increase in market value for the tax increment districts with PAYGO tax
increment notes:
Tax Increment Financing District Original Tax
Capacity
Pay 2024 Tax
Capacity
Percent
Increase in
Tax Capacity
TIF 11 – The Venue $27,510 $407,305 1,381%
TIF 12 – Lake Place Senior Apartments $9,195 $190,421 1,971%
In 2021, the City began a facilities study to evaluate the current condition and long-term replacement
needs of the City’s facilities. The study evaluated current condition, maintenance planning, and future
needs.
Based on the facilities study results, the City began construction of a new City Hall and Senior Center
building. The new civic campus will include a new City Hall, Council Chambers, Senior Center, and
destination park amenities, such as a playround, splash pad, pickleball courts, park rental facility,
bandshell, and several other features. Construction of the new City Hall started in the summer of 2024
and is expected to finish in summer 2025. The existing City Hall will then be demolished and
construction of the park amenities will occur, with completion expected by July 2026, in time for the
City’s 4th of July festivities. The City issued Capital Improvement Bonds in 2024 for construction of the
new City Hall and Senior Center building. The City will issue additional bonds in 2025 for the park
amenities portion of the project.
In 2024, the City held a referendum vote on whether to enact a one-half of one percent sales tax to fund a
portion of the cost for a new community center. The referendum passed and the City has started design
work for the new Chanhassen Bluffs Community Center. The total cost for the project, including land
acquistion, is $80 million. The City plans to begin construction in 2026, with occupancy expected in
2028. The City plans to issue bonds for this project also.
$-
$1
$2
$3
$4
$5
$6
$7
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024BillionsEstimated Market Value
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The Lake Ann Park Preserve Project is currently in the construction phase, but has been delayed due to
archelogical discoveries. The City Council dedicated American Rescue Plan Act (ARPA) funds for the
project. This project has several objectives, including:
•Continue trails around Lake Ann to allow for an eventual loop
•Preserve the land as a valued natural area in Chanhassen
•Connect residents with nature, trails, and parks
•Protect the ecological functioning (habitat, water quality) of the site
•Celebrate Lake Ann, Lake Lucy, and this property as community amenities
Chanhassen General Obligation bonds continue to maintain an ‘AAA’ rating from Standard & Poor’s
Rating Services, the highest possible rating, reaffirming their confidence in the City’s financial
management and its economic outlook. High bond ratings mean the City is able to sell General Obligation
bonds at lower interest rates.
Long-Term Financial Planning
The City expanded its long-term financial planning in 2021 to prepare multi-year financial plans for each
of its funds in the 2022 annual budget. The plans include projections of revenues, expenditures, fund
balance, and cash balance for a minimum of five years as well as a comparison to historical actual results
and the current budget. A narrative describes the fund, background, sources and uses of funds,
assumptions, and challenges for the future. These plans form the foundation for making budget decisions
for the City’s resources. The plans are updated each year.
The City is committed to preserving the value of the City’s capital asset investment. The City has
dedicated franchise fee revenue from electric and natural gas utilities as a funding source for the
replacement of the City’s streets. The City annually adopts a five-year Capital Improvement Plan to
coordinate the financing and timing of major equipment purchases and construction projects.
Each year the City selects city streets for a pavement rehabilitation project. In 2024, approximately three
miles of roadway were rehabilitated in the following areas: Chan View; Del Rio & Santa Fe; and Stone
Creek. Improvements included a full-depth reclamation or mill and overlay, spot curb and gutter
replacement, ADA improvements, and water, sewer, and stormwater management repairs.
Relevant Financial Policies
The City has established a comprehensive set of financial policies for use as a guideline for operations.
The City’s policy for General Fund reserve balances is to maintain an unassigned fund balance at a
minimum of 50% of the ensuing year’s budgeted tax levy to provide cash flow between property tax
settlements. The City’s Investment Policy is designed to preserve capital while attaining a market-
average yield consistent with cash flow needs. The policy prioritizes safety, liquidity, and yield in that
order. The City also has adopted policies for debt, capital assets, public purpose expenditures, and
purchasing.
Awards
Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate
of Achievement for Excellence in Financial Reporting to the City of Chanhassen for its annual
comprehensive financial report for the fiscal year ended December 31, 2023. This was the 32nd
consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting principles
and applicable legal requirements.
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A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements
and we are submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments
We would like to express our appreciation to the members of the City Council for their interest and
support in planning and conducting the financial operations of the City. We also want to thank the City
Manager, department directors, and members of the Finance Department for their assistance in compiling
the information necessary for this report. Special recognition goes to Danielle Washburn, Assistant
Finance Director, for her essential contributions to the preparation of this report. Finally, we wish to
acknowledge Abdo for their assistance in preparing this report.
Respectfully submitted,
Kelly Grinnell
Kelly Grinnell
Finance Director
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chanhassen
Minnesota
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
December 31, 2023
Executive Director/CEO
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CITY OF CHANHASSEN
ORGANIZATION CHART
CitizensCity Council
City Attorney
City Manager
Administration
Community
Development
Finance
Fire
Law Enforcement
Public Works
Parks & Recreation
City Commissions
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City of Chanhassen, Minnesota
Elected and Appointed Officials
For the Year Ended December 31, 2024
Name Title Term Expires
Elise Ryan Mayor 12/31/26
Josh Kimber Council Member 12/31/28
Jerry McDonald Council Member 12/31/26
Haley Schubert Council Member 12/31/28
Mark von Oven Council Member 12/31/26
Name Title
Laurie Hokkanen City Manager
Matthew Unmacht Assistant City Manager
Samantha DiMaggio Economic Development Manager
Kelly Grinnell Finance Director
Charles Howley Public Works Director/City Engineer
Andrew Heger Fire Chief
Jerry Ruegemer Parks and Recreation Director
Richard Rice IT Manager
Eric Maass Community Development Director
ELECTED
APPOINTED
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FINANCIAL SECTION
CITY OF CHANHASSEN
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and City Council
City of Chanhassen, Minnesota
Opinions
We have audited the accompanying financial statements of each major fund of the governmental activities, business-type
activates, each major fund and the aggregate remaining fund information of the City of Chanhassen, Minnesota (the City),
as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively
comprise the City’s financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund
information of the City as of December 31, 2024, and the respective changes in financial position and, where applicable,
cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our
other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve
months beyond the financial statement date, including any currently known information that may raise substantial doubt
shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
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In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the amounts and disclosures in the financial statements.
•Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the
audit.
Change in Accounting Principle
As described in Note 14 to the financial statements, the City adopted the provisions of Governmental Accounting
Standard Board (GASB) Statement No. 100, Accounting Changes and Error Corrections, for the year ended
December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of
the components of the financial statements. Our opinion is not modified with respect to this matter.
As described in Note 14 to the financial statements, the City adopted the provisions of Governmental Accounting
Standard Board (GASB) Statement No. 101, Compensated Absences, for the year ended December 31, 2024. Adoption of
the provisions of these statements results in significant change to the classifications of the components of the financial
statements. Our opinion is not modified with respect to this matter.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and
analysis starting on page 27 and the schedule of Employer’s Share of the Net Pension Liability, the schedule of Employer’s
Contributions, the related note disclosures, the Schedule of Changes in Net Pension Liability (Asset) and Related Ratios,
and the Schedule of Changes in the City's OPEB Liability and Related Ratios, starting on page 102 be presented to
supplement the basic financial statements. Such information is the responsibility of management and, 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.
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The accompanying combining and individual fund financial statements and schedules
are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and related directly to the underlying accounting
and other records used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the accompanying 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.
Other Information
Management is responsible for the other information in the annual report. The other information comprises the
introductory section and statistical section but does not include the basic financial statements and our auditor’s report
thereon. Our opinions on the basic financial statement do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 13, 2025, 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, and grant agreements and other matters. The purpose of that report is solely
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 the effectiveness of the City 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.
Abdo
Minneapolis, Minnesota
May 13, 2025
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Management’s Discussion and Analysis
As management of the City of Chanhassen, Minnesota, (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, 2024.
Financial Highlights
•The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year as shown in the summary of net position on the following
pages. The unrestricted amount of net position may be used to meet the City’s ongoing obligations to citizens
and creditors.
•The City’s total net position increased as shown in the summary of changes in net position table on the following
pages. The increase this year was due to an increase in operating grants and contributions and capital grants and
contributions. The increase in operating grants and contributions was primarily the result of reimbursements from
Carver County for the construction of Galpin Boulevard. The increase in capital grants and contributions was
primarily the result of utility hookup charges for the Roers apartment buildings.
•For the current fiscal year, the City's governmental funds fund balances are shown in the Financial Analysis of the
Government's Funds section of the MD&A. The total fund balance increased in comparison with the prior year.
This increase was primarily due to the issuance of capital improvement bonds for the construction of the Civic
Campus. The total assigned and unassigned fund balance as shown in the governmental fund balance table is
available for spending at the City’s discretion.
•The unassigned fund balance in the General fund as shown in the financial analysis of the government’s funds
section increased from the previous year due to positive budget variances for revenues and expenditures.
•The City’s total bonded debt increased during the fiscal year. The increase was a result of the issuance of the
2024A G.O. Capital Improvement Bonds for the construction of the Civic Campus.
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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.
The financial statements also include notes that explain some of the information in the financial statements and provide
more detailed data. The statements are followed by a section of combining and individual fund financial statements and
schedules that further explain and support the information in the financial statements. Figure 1 shows how the required
parts of this annual report are arranged and relate to one another. In addition to these required elements, we have
included a section with combining and individual fund financial statements and schedules that provide details about
nonmajor governmental funds, which are added together and presented in single columns in the basic financial
statements.
Figure 1
Required Components of the
City’s Annual Financial Report
Management's
Discussion and
Analysis
Basic
Financial
Statements
Required
Supplementary
Information
Government-
wide Financial
Statements
Fund
Financial
Statements
Notes to the
Financial
Statements
Summary Detail
28
Figure 2 summarizes the major features of the City’s financial statements, including the portion of the City government
they cover and the types of information they contain. The remainder of this overview section of management’s discussion
and analysis explains the structure and contents of each of the statements.
Figure 2
Major Features of the Government-wide and Fund Financial Statements
Fund Financial Statements
Government-wide
Statements
Governmental Funds Proprietary Funds
Scope Entire City government
(except fiduciary funds)
and the City’s component
units
The activities of the City that
are not proprietary or
fiduciary, such as
administrative, fire and parks
Activities the City operates
similar to private
businesses, such as the
water and sewer system
Required financial
statements
• Statement of Net
Position
• Statement of Activities
• Balance Sheet
• Statement of Revenues,
Expenditures, and
Changes in Fund Balances
• Statements of Net
Position
• Statements of
Revenues, Expenses and
Changes in Fund Net
Position
• Statements of Cash
Flows
Accounting basis and
measurement focus
Accrual accounting and
economic resources focus
Modified accrual accounting
and current financial
resources focus
Accrual accounting and
economic resources focus
Type of asset/liability
information
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Only assets expected to be
used up and liabilities that
come due during the year or
soon thereafter; no capital
assets included
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Type of deferred
outflows/inflows of
resources information
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid
Only deferred outflows of
resources expected to be
used up and deferred inflows
of resources that come due
during the year or soon
thereafter; no capital assets
included
All deferred
outflows/inflows of
resources, regardless of
when cash is received or
paid
Type of inflow/outflow
information
All revenues and expenses
during year, regardless of
when cash is received or
paid
Revenues for which cash is
received during or soon after
the end of the year;
expenditures when goods or
services have been received
and payment is due during
the year or soon thereafter
All revenues and expenses
during the year, regardless
of when cash is received or
paid
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, deferred outflows of resources, liabilities
and deferred inflows of resources, with the difference 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.
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).
29
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes
and intergovernmental revenue (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 (streets and highways), culture and recreation,
community development, and interest on long-term debt. The business-type activities of the City include water, sewer, and
surface water management.
The government-wide financial statements start on page 43 of this report.
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 government, 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 financing 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 statements. By doing so, readers may better understand the long-term impact
by the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains several individual 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, Civic Campus fund, and Pavement Management Program fund, which are considered to be major funds.
Data from the other governmental funds is presented as nonmajor.
The City adopts an annual appropriated budget for its General fund, select Special Revenue funds, one Debt Service fund,
and select Capital Project funds. A budgetary comparison statement has been provided for these funds to demonstrate
compliance with this budget.
The basic governmental fund financial statements start on page 48 of this report.
Proprietary Funds. Proprietary funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The City uses enterprise funds to account for its water, sewer, and surface water
management operations.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for each of the enterprise funds which are
considered to be major funds of the City.
The basic proprietary fund financial statements start on page 54 of this report.
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. The notes to the financial statements start on
page 61 of this report.
Supplementary Information. In addition to the basic financial statements and accompanying notes, this report also
presents required supplementary information concerning the City’s progress in funding its obligation to provide pension
benefits and other post-employment benefits to its employees. Required supplementary information can be found on
page 102 of this report.
30
Other Information. The combining statements referred to earlier in connection with nonmajor governmental funds is
presented following the notes to the financial statements. Combining and individual fund statements and schedules start
on page 120 of this report.
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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources at the close of
the most recent fiscal year.
A portion of the City’s net position reflects its net investment in capital assets (e.g., land, buildings, infrastructure,
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.
City of Chanhassen’s Summary of Net Position
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)
Assets
Current and other assets 55,441,421$ 33,191,131$ 22,250,290$ 11,911,158$ 13,496,336$ (1,585,178)$
Capital assets 84,778,378 72,533,901 12,244,477 80,400,354 79,102,235 1,298,119
Total Assets 140,219,799 105,725,032 34,494,767 92,311,512 92,598,571 (287,059)
Deferred Outflows of Resources
Deferred other postemployment benefit resources 65,614 77,330 (11,716) 11,468 12,911 (1,443)
Deferred pension resources 1,917,660 2,695,101 (777,441) 502,273 586,895 (84,622)
Total Deferred Outflows of Resources 1,983,274 2,772,431 (789,157) 513,741 599,806 (86,065)
Liabilities
Noncurrent liabilities outstanding 10,991,681 8,887,524 2,104,157 3,526,141 2,853,950 672,191
Other liabilities 30,989,563 8,421,811 22,567,752 20,485,420 22,552,600 (2,067,180)
Total Liabilities 41,981,244 17,309,335 24,671,909 24,011,561 25,406,550 (1,394,989)
Deferrred Inflows of Resources
Deferred other postemployment benefit resources 82,802 59,689 23,113 14,472 9,966 4,506
Deferred pension resources 3,572,121 2,676,175 895,946 264,217 173,263 90,954
Deferred lease resources 3,271,051 3,471,066 (200,015) - - -
Total Deferred Inflows of Resources 6,925,974 6,206,930 719,044 278,689 183,229 95,460
Net Position
Net investment in capital assets 69,207,758 67,404,190 1,803,568 59,721,155 56,649,651 3,071,504
Restricted 2,784,210 2,858,088 (73,878) - - -
Unrestricted 21,303,887 14,718,920 6,584,967 8,813,848 10,958,947 (2,145,099)
Total Net Position 93,295,855$ 84,981,198$ 8,314,657$ 68,535,003$ 67,608,598$ 926,405$
Net Position as a Percent of Total
Net investment in capital assets 74.2 %79.3 %87.1 %83.8 %
Restricted 3.0 3.4 - -
Unrestricted 22.8 17.3 12.9 16.2
Total 100.0 %100.0 %100.0 %100.0 %
Governmental Activities Business-type Activities
31
An additional portion of the City’s net position represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position 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 three categories
of net position for governmental activities and net investment in capital assets for business-type activities.
City of Chanhassen’s Changes in Net Position
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)
Revenues
Program Revenues
Charges for services 3,517,012$ 3,642,164$ (125,152)$ 10,535,783$ 10,999,440$ (463,657)$
Operating grants and contributions 9,443,046 4,556,281 4,886,765 56,775 46,458 10,317
Capital grants and contributions 2,662,398 1,693,875 968,523 5,594,435 1,853,961 3,740,474
General Revenues
Taxes
Property taxes 14,357,960 13,409,631 948,329 - - -
Tax increment 444,581 282,067 162,514 - - -
Franchise fees 2,040,308 2,045,767 (5,459) - - -
Grants and contributions not
restricted to specific programs 141,257 390,075 (248,818) - - -
Unrestricted investment earnings 1,466,312 1,054,685 411,627 406,491 540,984 (134,493)
Other general revenues 170,653 126,114 44,539 - - -
Gain on sale of capital assets 248,053 164,746 83,307 - - -
Total Revenues 34,491,580 27,365,405 7,126,175 16,593,484 13,440,843 3,152,641
Expenses
General government 3,810,386 4,326,016 (515,630) - - -
Public safety 5,463,958 5,825,937 (361,979) - - -
Public works 10,953,832 10,646,546 307,286 - - -
Culture and recreation 3,896,895 4,252,161 (355,266) - - -
Community development 998,188 868,229 129,959 - - -
Interest on long-term debt 1,053,664 218,628 835,036 - - -
Water - - - 5,966,996 5,782,514 184,482
Sewer - - - 5,838,537 5,359,316 479,221
Surface water management - - - 3,861,546 2,565,581 1,295,965
Total Expenses 26,176,923 26,137,517 39,406 15,667,079 13,707,411 1,959,668
Change in net position 8,314,657 1,227,888 7,086,769 926,405 (266,568) 1,192,973
Net Position, January 1 84,981,198 83,753,310 1,227,888 67,608,598 67,875,166 (266,568)
Net Position, December 31 93,295,855$ 84,981,198$ 8,314,657$ 68,535,003$ 67,608,598$ 926,405$
Governmental Activities Business-type Activities
32
Governmental Activities. Governmental activities increased the City’s net position as shown in the summary of changes
in net position.
The following graphs depict various governmental activities and shows the revenue and expenses directly related to those
activities. Key elements of the changes are listed below:
•Operating grants and contributions revenue increased primarily due to payment received from Carver County for
the construction of Galpin Boulevard.
•Overall expenses remained relatively flat compared to the previous year.
Expenses and Program Revenue - Governmental Activities
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
General
Government
Public Safety Public Works Culture and
Recreation
Community
Development
Interest on
Long-term
Debt
Expense Program Revenues
Revenue by Source - Governmental Activities
Charges for
Services
10.2%Operating
Grants and
Contributions
27.4%
Capital Grants
and
Contributions
7.7%
Grants and
Contributions
Unrestricted
0.4%
Taxes
48.8%
Other
5.5%
33
Expense by Program - Governmental Activities
General
Government
35.1%
Public Safety
15.8%
Public Works
31.8%
Culture and
Recreation
11.3%
Community
Development
2.9%
Interest on
Long-term Debt
3.1%
Business-type Activities. Business-type activities increased the City’s net position as noted in the changes in net position
table above. Key elements of the changes are listed below:
• Revenues in the business-type activities increased mainly due to an increase in capital grants and contributions
for the year relating to utility hookup charges from the Roers apartment buildings.
• Expenses in the Surface Water Management fund increased due to expenses related to construction projects.
Expenses and Program Revenues - Business-type Activities
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Water Sewer Surface Water Management
Expenses Program Revenues
34
Revenue by Source - Business-type Activities
Charges for
Services
63.6%Operating
Grants and
Contributions
0.3%
Capital Grants
and
Contributions
33.7%
Other
2.4%
Expenses by Program - Business-type Activities
Water
71.9%
Sewer
16.9%
Surface Water
Management
11.2%
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Financial Analysis of the Government’s Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows
and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
Pavement Other
General Civic Mgmt Prgm Governmental Prior Year Increase/
Fund Campus (PMP)Funds Total Total (Decrease)
Fund Balances
Nonspendable 135,138$ -$ -$ -$ 135,138$ 78,627$ 56,511$
Restricted - 16,130,983 - 3,165,077 19,296,060 2,884,859 16,411,201
Committed - -- 144,359 144,359 344,647 (200,288)
Assigned 4,225,000 - 771,562 4,328,451 9,325,013 7,909,972 1,415,041
Unassigned 7,762,840 - -(20,494) 7,742,346 7,009,097 733,249
Total Fund Balances 12,122,978$ 16,130,983$ 771,562$ 7,617,393$ 36,642,916$ 18,227,202$ 18,415,714$
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances as shown
above. Additional information on the City’s fund balances can be found in Note 1 starting on page 61 of this report.
The General fund is the chief operating fund of the City. The current year end fund balance of the General fund is shown in
the table above. The overall General fund balance increased largely due to the designation of American Rescue Plan Act
(ARPA) funds for revenue replacement and the expenditure of those funds for public safety services by the fire
department and contracted police services with the Carver County Sheriff’s Department. As a measure of the General
fund’s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. The total unassigned
fund balance percent of total fund expenditures is shown in the chart below along with total fund balance as a percentage
of total expenditures.
Current Year Prior Year Increase/
Ending Balance Ending Balance (Decrease)
General Fund Fund Balances
Nonspendable 135,138$ 63,227$ 71,911$
Assigned 4,225,000 797,600 3,427,400
Unassigned 7,762,840 8,011,272 (248,432)
Total General Fund Balances 12,122,978$ 8,872,099$ 3,250,879$
General Fund expenditures 14,834,409 14,087,518
Unassigned as a percent of expenditures 52.3%56.9%
Total Fund Balance as a percent of expenditures 81.7%63.0%
Other governmental fund analysis is shown below:
December 31,December 31, Increase/
2024 2023 (Decrease)
Civic Campus fund 16,130,983$ (975,263)$ 17,106,246$
Pavement Management Program (PMP) fund 771,562$ 3,312,577$ (2,541,015)$
The Pavement Management Program (PMP) fund balance decreased during the year due to capital expenditures. These
expenditures were associated with construction costs relating to the City's ongoing projects as part of the Pavement Management
Program.
The Civic Campus fund balance increased during the year mainly due to the issuance of the Capital Improvement Plan Bonds.
36
Proprietary Funds. The City’s proprietary funds provide the same type of information found in the government-wide
financial statements, but in more detail. Net position of the City’s proprietary funds is as follows:
Ending Ending
Net Position Net Position Increase/
2024 2023 (Decrease)
Water 36,553,909$ 35,087,132$ 1,466,777$
Sewer 16,253,877$ 16,615,145$ (361,268)$
Surface Water Management 15,727,217$ 15,906,321$ (179,104)$
The decrease is primarily attributed to the operating loss during the year.
The decrease is primarily attributed to the operating loss during the year.
The increase is primarily attributed to the charges for services and the capital contributions from connection fees during the
year.
General Fund Budgetary Highlights
Final
Budgeted Actual Variance with
Amounts Amounts Final Budget
Revenues 15,413,350$ 16,348,182$ 934,832$
Expenditures 15,653,350 14,834,409 818,941
Excess (Deficiency) of Revenues
Over (Under) Expenditures (240,000) 1,513,773 1,753,773
Other Financing Sources (Uses)
Transfers in 330,000 1,737,106 1,407,106
Net Change in Fund Balances 90,000 3,250,879 3,160,879
Fund Balances, January 1 8,872,099 8,872,099 -
Fund Balances, December 31 8,962,099$ 12,122,978$ 3,160,879$
The City’s General fund budget was not amended during the year as shown above. Actual revenues were over the final
budget and expenditures were under the final budget amounts as shown above. The main reasons for the favorable
revenue variance was due to investment earnings and building permit revenues in excess of the budget. The positive
expenditure variance was due to several departments in the general fund spending under the final budget.
37
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, 2024, is shown below in the schedule of capital assets (net of depreciation). This investment in capital
assets includes land, structures, improvements, machinery and equipment, park facilities, and roads.
Additional information on the City’s capital assets can be found in Note 4 starting on page 73 of this report.
City of Chanhassen’s Capital Assets
(Net of Depreciation/Amortization)
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)
Land 19,920,218$ 19,915,918$ 4,300$ 2,116,335$ 2,116,335$ -$
Permanent easements 2,826,748 2,826,748 - 7,088,204 7,088,204 -
Construction in progress 19,596,516 3,826,559 15,769,957 7,597,828 3,126,181 4,471,647
Buildings and structures 12,300,991 12,919,348 (618,357) 22,078,064 22,643,399 (565,335)
Right to use lease assets - vehicles 631,977 597,153 34,824 215,911 35,759 180,152
Machinery and equipment 3,404,523 3,560,772 (156,249) 1,058,010 1,208,861 (150,851)
Other improvements 6,297,818 6,795,537 (497,719) 40,246,002 42,883,496 (2,637,494)
Infrastructure 19,799,587 22,091,866 (2,292,279) - - -
Total 84,778,378$ 72,533,901$ 12,244,477$ 80,400,354$ 79,102,235$ 1,298,119$
Percent increase (decrease)16.9%1.6%
Governmental Activities Business-type Activities
Long-term Debt. At the end of the current fiscal year, the City had total bonded debt outstanding consisting solely of
general obligation debt as noted in the table below. While all of the City’s bonds have revenue streams, they are all backed
by the full faith and credit of the City. The City leases multiple vehicles from Enterprise Rent-a-Car. As of
December 31, 2024, the City had 40 outstanding vehicle leases, 14 of which were entered into during 2024.
City of Chanhassen’s Outstanding Debt
Increase Increase
2024 2023 (Decrease)2024 2023 (Decrease)
General Obligation Bonds 26,870,000$ 3,015,000$ 23,855,000$ -$ -$ -$
General Obligation Revenue Bonds - - - 19,520,000 21,275,000 (1,755,000)
Bond Premium 1,288,708 111,893 1,176,815 775,613 894,245 (118,632)
Lease Payable 675,181 614,439 60,742 218,636 37,140 181,496
Total 28,833,889$ 3,741,332$ 25,092,557$ 20,514,249$ 22,206,385$ (1,692,136)$
Percent increase (decrease)670.7%-7.6%
Governmental Activities Business-type Activities
The City’s total debt increased during the current fiscal year. The key factor in the increase was a capital improvement
bond issuance for the new Civic Campus.
Additional information on the City’s long-term debt can be found in Note 8 starting on page 77 of this report.
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Economic Factors and Next Year’s Budget and Rates
The City’s elected officials considered many factors when setting the fiscal year 2025 budget, rates, and fees. These
considerations included, but are not limited to, the following:
• The City participates in several long-term planning processes that align with the City’s budget process. The
strategic plan and comprehensive plan form the basis for the City’s operating and capital budgets.
• The City’s contract with the County Sheriff for policing services increased 7.4 percent from 2024, which is less
than the 12.6% increase from 2023 to 2024, but still higher than the general inflation rate.
• The 2025 budget includes one new full-time employee, a Facilities Maintenance Technician. This adds a second
person for building maintenance for all City Buildings.
• The budget maintains planned, modest annual increases in funding levels for transportation/routine road
maintenance, pavement management/street reconstruction, trail maintenance, and capital equipment.
• The City’s goal is to maintain road conditions in the City to achieve a stable score of 70 on the Pavement
Condition Index (PCI).
• The City contracted for a utility rate study analysis to determine rates for 2023 and beyond given the increased
capital and operating costs for each utility. The 2025 rates from the study are incorporated into the utility fund
budgets.
• Another City Council goal was to minimize the total increase on the levy since a new debt service levy for the Civic
Campus bonds begins for taxes payable in 2025.
• The City started a new levy for the park renovation fund for 2025 for $100,000. This new dedicated levy will help
the City accumulate funds for maintenance and replacement of existing park amenities, which have historically
not had a dedicated funding source.
The City’s adopted budget for 2025 includes a property tax levy of $15,370,000, which is a 6.3 percent increase over the
previous year. The City’s growth in tax capacity was approximately 2.3 percent and the tax rate increased approximately
4.3 percent, from 20.96 percent to 21.86 percent.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the
City’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Finance Director, City of Chanhassen, 7700 Market Boulevard, P.O. Box 147,
Chanhassen, Minnesota 55317.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
CITY OF CHANHASSEN
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
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City of Chanhassen, Minnesota
Statement of Net Position
December 31, 2024
Governmental Business-type
Activities Activities Total
Assets
Cash and investments 44,376,079$ 7,506,372$ 51,882,451$
Receivables
Accounts 713,145 889,699 1,602,844
Accrued interest 145,673 45,429 191,102
Taxes 150,418 - 150,418
Leases 3,271,051 - 3,271,051
Special assessments 3,944,253 3,069,464 7,013,717
Due from other governments 2,666,817 203,617 2,870,434
Inventories - 184,342 184,342
Prepaid items 135,138 12,235 147,373
Pension asset 38,847 - 38,847
Capital assets
Land and construction in progress 42,343,482 16,802,367 59,145,849
Depreciable assets (net of accumulated depreciation and amortization)42,434,896 63,597,987 106,032,883
Total Assets 140,219,799 92,311,512 232,531,311
Deferred Outflows of Resources
Deferred pension resources 1,917,660 502,273 2,419,933
Deferred other postemployment benefit resources 65,614 11,468 77,082
Total Deferred Outflows of Resources 1,983,274 513,741 2,497,015
Liabilities
Accounts and contracts payable 5,994,542 1,180,880 7,175,422
Accrued salaries 189,868 62,850 252,718
Accrued interest payable 419,714 251,619 671,333
Due to other governments 354,893 92,821 447,714
Deposits payable 1,972,603 - 1,972,603
Unearned revenue 1,061,341 - 1,061,341
Noncurrent liabilities
Due within one year
Long-term liabilities 974,745 1,933,780 2,908,525
Other postemployment benefits liability 23,975 4,191 28,166
Due in more than one year
Long-term liabilities 28,744,993 18,845,796 47,590,789
Other postemployment benefits liability 155,594 27,195 182,789
Net pension liability 2,088,976 1,612,429 3,701,405
Total Liabilities 41,981,244 24,011,561 65,992,805
Deferred Inflows of Resources
Deferred pension resources 3,572,121 264,217 3,836,338
Deferred other postemployment benefit resources 82,802 14,472 97,274
Deferred lease resources 3,271,051 - 3,271,051
Total Deferred Inflows of Resources 6,925,974 278,689 7,204,663
Net Position
Net investment in capital assets 69,207,758 59,721,155 128,928,913
Restricted for
Local affordable housing 126,855 - 126,855
Park improvements 672,134 - 672,134
Tax increments 54,927 - 54,927
Public safety 950,174 - 950,174
Debt service 897,387 - 897,387
Communications 43,886 - 43,886
Pension asset 38,847 - 38,847
Unrestricted 21,303,887 8,813,848 30,117,735
Total Net Position 93,295,855$ 68,535,003$ 161,830,858$
The notes to the financial statements are an integral part of this statement.
43
City of Chanhassen, Minnesota
Statement of Activities
For the Year Ended December 31, 2024
Operating Capital
Charges For Grants and Grants and
Expenses Services Contributions Contributions
Primary Government
Governmental activities
General government 3,810,386$ 466,197$ -$ 4,300$
Public safety 5,463,958 1,943,159 2,030,874 -
Public works 10,953,832 475,766 6,438,578 2,658,098
Culture and recreation 3,896,895 588,499 973,594 -
Community development 998,188 43,391 - -
Interest on long-term debt 1,053,664 - - -
Total Governmental Activities 26,176,923 3,517,012 9,443,046 2,662,398
Business-type Activities
Water 5,966,996 4,133,781 14,807 3,088,022
Sewer 5,838,537 4,330,428 - 937,017
Surface water management 3,861,546 2,071,574 41,968 1,569,396
Total Business-type Activities 15,667,079 10,535,783 56,775 5,594,435
Total Governmental and 41,844,002$ 14,052,795$ 9,499,821$ 8,256,833$
Business-type Activities
General Revenues
Taxes
Property taxes, levied for general purposes
Tax increments
Franchise fees
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Other general revenues
Gain on sale of capital assets
Total General Revenues
Change in Net Position
Net Position - January 1
Net Position - December 31
Program Revenues
Functions/Programs
The notes to the financial statements are an integral part of this statement.
44
Governmental Business-type
Activities Activities Total
(3,339,889)$ -$ (3,339,889)$
(1,489,925) - (1,489,925)
(1,381,390) - (1,381,390)
(2,334,802) - (2,334,802)
(954,797) - (954,797)
(1,053,664) - (1,053,664)
(10,554,467) - (10,554,467)
- 1,269,614 1,269,614
- (571,092) (571,092)
- (178,608) (178,608)
- 519,914 519,914
(10,554,467) 519,914 (10,034,553)
14,357,960 - 14,357,960
444,581 - 444,581
2,040,308 - 2,040,308
141,257 - 141,257
1,466,312 406,491 1,872,803
170,653 - 170,653
248,053 - 248,053
18,869,124 406,491 19,275,615
8,314,657 926,405 9,241,062
84,981,198 67,608,598 152,589,796
93,295,855$ 68,535,003$ 161,830,858$
Net (Expenses) Revenues and
Changes in Net Position
Primary Government
The notes to the financial statements are an integral part of this statement.
45
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46
FUND FINANCIAL STATEMENTS
CITY OF CHANHASSEN
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
47
601
414 Pavement Other
Civic Mgmt Prgm Governmental
General Campus (PMP)Funds Total
Assets
Cash and investments 14,165,495$ 17,407,338$ 4,205,147$ 8,598,099$ 44,376,079$
Receivables
Accounts 119,098 - 497,630 96,417 713,145
Accrued interest 59,478 9,478 27,885 48,832 145,673
Taxes 136,117 - 5,393 8,908 150,418
Leases 3,271,051 - - - 3,271,051
Special assessments 352 - 2,445,187 1,498,714 3,944,253
Due from other funds 271,000 - - - 271,000
Due from other governments 163,277 - 2,389,130 114,410 2,666,817
Prepaid items 135,138 - - - 135,138
Total Assets 18,321,006$ 17,416,816$ 9,570,372$ 10,365,380$ 55,673,574$
Liabilities
Accounts payable 345,599$ 1,035,833$ 649,588$ 1,052,247$ 3,083,267$
Accrued salaries payable 189,868 - - - 189,868
Contracts payable - - 2,745,928 165,347 2,911,275
Due to other governments 313,625 - 30,589 10,679 354,893
Due to other funds - 250,000 - 21,000 271,000
Deposits payable 1,972,603 - - - 1,972,603
Unearned revenue 44,695 - 1,016,646 - 1,061,341
Total Liabilities 2,866,390 1,285,833 4,442,751 1,249,273 9,844,247
Deferred Inflows of Resources
Unavailable revenue - intergovernmental - - 1,914,607 - 1,914,607
Unavailable revenue - property taxes 60,235 - - - 60,235
Unavailable revenue - special assessments 352 - 2,441,452 1,498,714 3,940,518
Deferred lease resources 3,271,051 - - - 3,271,051
Total Deferred Inflows
of Resources 3,331,638 - 4,356,059 1,498,714 9,186,411
Fund Balances
Nonspendable 135,138 - - - 135,138
Restricted - 16,130,983 - 3,165,077 19,296,060
Committed - - - 144,359 144,359
Assigned 4,225,000 - 771,562 4,328,451 9,325,013
Unassigned 7,762,840 - - (20,494) 7,742,346
Total Fund Balances 12,122,978 16,130,983 771,562 7,617,393 36,642,916
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 18,321,006$ 17,416,816$ 9,570,372$ 10,365,380$ 55,673,574$
City of Chanhassen, Minnesota
Balance Sheet
Governmental Funds
December 31, 2024
The notes to the financial statements are an integral part of this statement.
48
City of Chanhassen, Minnesota
Reconciliation of the Balance Sheet
to the Statement of Net Position
Governmental Funds
December 31, 2024
Amounts reported for the governmental activities in the statement of net position are different because
Total Fund Balances - Governmental 36,642,916$
Capital assets used in governmental activities are not financial
resources and therefore are not reported as assets in governmental funds.
Cost of capital assets 219,759,418
Less accumulated depreciation (134,981,040)
Long-term assets from pensions reported in governmental activities are not financial resources
and therefore are not reported as assets in the funds 38,847
Long-term liabilities, including bonds payable, are not due and payable in the
current period and therefore are not reported as liabilities in the funds.
Long-term liabilities at year-end consist of
Bond principal payable (26,870,000)
Unamortized premiums on bonds (1,288,708)
Project financing (207,417)
Leases payable (675,181)
Compensated absences payable (678,432)
Other postemployment benefits payable (179,569)
Net pension liability (2,088,976)
Some receivables are not available soon enough to pay for the current period's expenditures,
and therefore are reported as unavailable in the funds.
Property taxes receivable 60,235
Special assessments receivable 3,940,518
Intergovernmental 1,914,607
Governmental funds do not report long-term amounts related to pensions
and other post-employment benefits.
Deferred outflows of pension resources 1,917,660
Deferred inflows of pension resources (3,572,121)
Deferred outflows of OPEB resources 65,614
Deferred inflows of OPEB resources (82,802)
Governmental funds do not report a liability for accrued interest until due and payable.(419,714)
Total Net Position - Governmental Activities 93,295,855$
The notes to the financial statements are an integral part of this statement.
49
City of Chanhassen, Minnesota
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended December 31, 2024
601
414 PMP Pavement Other
Civic Management 212*Governmental
General Campus Capital Grant Fund Funds Total
Revenues
Taxes 11,724,499$ -$ 982,000$ 1,622,000$ 14,328,499$
Tax increments - - - 444,581 444,581
Licenses and permits 2,221,600 - - 28,333 2,249,933
Intergovernmental 573,098 - 5,367,221 2,481,057 8,421,376
Charges for services 1,095,814 - -6,100 1,101,914
Franchise fees 140,269 - 1,899,990 49 2,040,308
Fines and forfeits 75,887 - -- 75,887
Special assessments - - 1,397,913 - 1,397,913
Investment earnings 397,474 362,678 340,916 373,855 1,474,923
Miscellaneous 119,541 - - 98,031 217,572
Total Revenues 16,348,182 362,678 9,988,040 5,054,006 31,752,906
Expenditures
Current
General government 3,312,119 12,855 - 216,206 3,541,180
Public safety 5,303,287 - - - 5,303,287
Public works 2,807,222 - 1,385 - 2,808,607
Culture and recreation 2,826,840 - -- 2,826,840
Community development 584,941 - -425,844 1,010,785
Capital outlay -
General government - 7,868,039 - 265,165 8,133,204
Public safety - -- 183,872 183,872
Public works - -12,382,670 372,368 12,755,038
Culture and recreation - -- 1,426,215 1,426,215
Debt service -
Principal - - 145,000 685,933 830,933
Interest and other charges - - - 140,745 140,745
Bond issuance costs - 341,338 - - 341,338
Total Expenditures 14,834,409 8,222,232 12,529,055 3,716,348 39,302,044
Excess (Deficiency) of Revenues
Over (Under) Expenditures 1,513,773 (7,859,554) (2,541,015) 1,337,658 (7,549,138)
Other Financing Sources (Uses)
Sale of capital assets - - - 266,687 266,687
Transfers in 1,737,106 - - 938,120 2,675,226
Issuance of leases - - - 255,365 255,365
Issuance of bonds - 23,773,000 - 477,000 24,250,000
Premiums on bonds issued - 1,192,800 - - 1,192,800
Transfers out - -- (2,675,226) (2,675,226)
Total Other Financing
Sources (Uses)1,737,106 24,965,800 - (738,054) 25,964,852
Net Changes in Fund Balances 3,250,879 17,106,246 (2,541,015) 599,604 18,415,714
Fund Balances, January 1, as previously reported 8,872,099 - 3,312,577 1,193,139 4,849,387 18,227,202
Change to the financial reporting entity
Change from major to nonmajor fund - - - (1,193,139) 1,193,139 -
Change from nonmajor to major fund - (975,263) - 975,263 -
Fund Balances, January 1, as adjusted 8,872,099 (975,263) 3,312,577 - 7,017,789 18,227,202
Fund Balances, December 31 12,122,978$ 16,130,983$ 771,562$ 7,617,393$ 36,642,916$
* Grant Fund 212 was formerly major
The notes to the financial statements are an integral part of this statement.
50
City of Chanhassen, Minnesota
Reconciliation of the Statement of
Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities
Governmental Funds
For the Year Ended December 31, 2024
Amounts reported for governmental activities in the statement of activities are different because
Total Net Change in Fund Balances 18,415,714$
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.
Depreciation expense (4,196,660)
Capital outlays 16,455,471
Contribution of capital assets from developers 4,300
Governmental funds report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the
disposition of the assets book value is included in the total gain (loss) in the statement of activities.
Disposals (427,754)
Depreciation on disposals 409,120
The issuance of long-term debt provides current financial resources to governmental funds, while
the repayment of principal of long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also, governmental funds report
the effect of issuance costs, premiums, discounts and similar items when debt is first issued,
whereas these amounts are deferred and amortized in the statement of activities.
Issuance of debt (24,250,000)
Premium on bonds issued (1,192,800)
Principal repayments on bonds 395,000
Principal repayments on leases 194,623
Principal repayments on project financing 241,310
Leases issued (255,365)
Interest on long-term debt in the statement of activities differs from the amount reported in the
governmental funds because interest is recognized as an expenditure in the funds when it is due,
and thus requires the use of current financial resources. In the statement of activities, however,
interest expense is recognized as the interest accrues, regardless of when it is due.(392,943)
Governmental funds report debt issuance premiums and discounts as an other financing
source or use at the time of issuance. Premiums and discounts are reported
as an unamortized asset or liability in the city-wide financial statements.
Amortization of bond premiums and discount 15,985
Certain revenues are recognized as soon as they are earned. Under the modified accrual
basis of accounting certain revenues cannot be recognized until they are available
to liquidate liabilities of the current period.
Special assessments 1,260,185
Property taxes 18,668
Intergovernmental 1,070,406
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.
Compensated absences and other postemployment benefit payable 5,164
Long-term pension activity is not reported in governmental funds.
Pension expense 407,171
Direct aid contributions 137,062
Change in Net Position - Governmental Activities 8,314,657$
The notes to the financial statements are an integral part of this statement.
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52
City of Chanhassen, Minnesota
Actual Variance with
Original Final Amounts Final Budget
Revenues
Taxes 11,851,000$ 11,851,000$ 11,724,499$ (126,501)$
Franchise fees 145,000 145,000 140,269 (4,731)
Licenses and permits 1,582,500 1,582,500 2,221,600 639,100
Intergovernmental 466,000 466,000 573,098 107,098
Charges for services 1,035,350 1,035,350 1,095,814 60,464
Fines and forfeits 70,000 70,000 75,887 5,887
Investment earnings 200,000 200,000 397,474 197,474
Miscellaneous 63,500 63,500 119,541 56,041
Total Revenues 15,413,350 15,413,350 16,348,182 934,832
Expenditures
Current
General government 3,583,106 3,583,106 3,312,119 270,987
Public safety 5,440,052 5,440,052 5,303,287 136,765
Public works 3,102,596 3,102,596 2,807,222 295,374
Culture and recreation 2,920,553 2,920,553 2,826,840 93,713
Community development 607,043 607,043 584,941 22,102
Total Expenditures 15,653,350 15,653,350 14,834,409 818,941
Excess (Deficiency) of Revenues
Over (Under) Expenditures (240,000) (240,000) 1,513,773 1,753,773
Other Financing Sources
Transfers in 330,000 330,000 1,737,106 1,407,106
Net Change in Fund Balances 90,000 90,000 3,250,879 3,160,879
Fund Balances, January 1 8,872,099 8,872,099 8,872,099 -
Fund Balances, December 31 8,962,099$ 8,962,099$ 12,122,978$ 3,160,879$
Budgeted Amounts
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
General Fund
For the Year Ended December 31, 2024
The notes to the financial statements are an integral part of this statement.
53
City of Chanhassen, Minnesota
Statement of Net Position
Proprietary Funds
December 31, 2024
Surface Water
Water Sewer Management Totals
Assets
Current Assets
Cash and investments 3,380,174$ 4,122,717$ 3,481$ 7,506,372$
Receivables
Accounts 290,260 340,486 258,953 889,699
Accrued interest 24,117 21,312 - 45,429
Special assessments 308,449 18,565 - 327,014
Due from other funds 1,060,000 - - 1,060,000
Due from other governments 2,511 151,154 49,952 203,617
Inventory 184,342 - - 184,342
Prepaid expenses 6,385 4,456 1,394 12,235
Total Current Assets 5,256,238 4,658,690 313,780 10,228,708
Noncurrent Assets
Special assessments 2,159,650 582,800 - 2,742,450
Capital assets
Land 1,370,974 145,550 599,811 2,116,335
Land improvements 2,433,426 2,327,389 2,327,389 7,088,204
Construction in progress 2,353,646 2,551,907 2,692,275 7,597,828
Improvements 56,658,433 36,920,878 34,628,131 128,207,442
Leased equipment 134,302 134,302 - 268,604
Buildings 28,189,036 - - 28,189,036
Machinery and equipment 891,925 949,319 776,651 2,617,895
Less accumulated depreciation/amortization (43,205,743) (29,955,859) (22,523,388) (95,684,990)
Total Capital Assets (Net of
Accumulated Depreciation/Amortization)48,825,999 13,073,486 18,500,869 80,400,354
Total Noncurrent Assets 50,985,649 13,656,286 18,500,869 83,142,804
Total Assets 56,241,887 18,314,976 18,814,649 93,371,512
Deferred Outflows of Resources
Deferred other postemployment benefit resources 6,798 3,161 1,509 11,468
Deferred pension resources 138,432 151,439 212,402 502,273
Total deferred outflows of resources 145,230 154,600 213,911 513,741
Total Assets and Deferred Outflows of Resources 56,387,117$ 18,469,576$ 19,028,560$ 93,885,253$
Liabilities
Current Liabilities
Accounts payable 63,167$ 45,878$ 68,291$ 177,336$
Contracts payable 378,965 169,697 454,882 1,003,544
Accrued salaries 25,570 18,684 18,596 62,850
Accrued interest payable 230,703 12,083 8,833 251,619
Due to other governments 2,324 44,896 45,601 92,821
Due to other funds - - 1,060,000 1,060,000
Lease liability - current 39,749 39,749 - 79,498
Bonds payable - current 1,515,000 170,000 125,000 1,810,000
OPEB liability 2,484 1,155 552 4,191
Compensated absences payable - current 17,300 13,502 13,480 44,282
Total Current Liabilities 2,275,262 515,644 1,795,235 4,586,141
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
54
City of Chanhassen, Minnesota
Statement of Net Position (Continued)
Proprietary Funds
December 31, 2024
Surface Water
Water Sewer Management Total
Noncurrent Liabilities
Compensated absences 86,356$ 67,399$ 67,290$ 221,045$
Lease liability 69,569 69,569 - 139,138
Bonds payable 16,759,094 996,837 729,682 18,485,613
OPEB liability 16,121 7,497 3,577 27,195
Net pension liability 482,088 482,127 648,214 1,612,429
Total Noncurrent Liabilities 17,413,228 1,623,429 1,448,763 20,485,420
Total Liabilities 19,688,490 2,139,073 3,243,998 25,071,561
Deferred Inflows of Resources
Deferred other postemployment benefit resources 8,579 3,989 1,904 14,472
Deferred pension resources 136,139 72,637 55,441 264,217
Total deferred inflows of resources 144,718 76,626 57,345 278,689
Net Position
Net investment in capital assets 30,442,587 11,797,331 17,481,237 59,721,155
Unrestricted 6,111,322 4,456,546 (1,754,020) 8,813,848
Total Net Position 36,553,909 16,253,877 15,727,217 68,535,003
Total Liabilities, Deferred
Inflows of Resources and
Net Position 56,387,117$ 18,469,576$ 19,028,560$ 93,885,253$
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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56
Surface Water
Water Sewer Management Total
Charges for services 4,128,607$ 4,229,359$ 2,070,148$ 10,428,114$
Intergovernmental 14,807 - 41,968 56,775
Total Operating Revenues 4,143,414 4,229,359 2,112,116 10,484,889
Operating Expenses
1,134,292 800,511 988,990 2,923,793
286,309 51,893 21,643 359,845
195,244 3,225,079 391,468 3,811,791
279,843 49,901 - 329,744
20,000 20,000 8,000 48,000
1,201,941 534,861 1,188,974 2,925,776
1,950,312 872,581 1,053,605 3,876,498
Salaries and benefits
Materials and supplies
Professional services
Utilities
Insurance
Repairs and maintenance
Depreciation
Other 425,192 260,691 198,144 884,027
Total Operating Expenses 5,493,133 5,815,517 3,850,824 15,159,474
Operating Income (Loss)(1,349,719) (1,586,158) (1,738,708) (4,674,585)
Nonoperating Revenues (Expenses)
Investment income (loss)197,163 209,824 (496) 406,491
Refunds and reimbursements 5,174 101,069 1,426 107,669
Interest expense and fiscal charges (473,863) (23,020) (10,722) (507,605)
Total Nonoperating
Revenues (Expenses)(271,526) 287,873 (9,792) 6,555
Income (Loss) Before Contributions (1,621,245) (1,298,285) (1,748,500) (4,668,030)
Capital Contributions
Contributions of capital assets 49,360 24,317 1,404,623 1,478,300
Intergovernmental - 78,080 - 78,080
Connection charges 3,038,662 834,620 164,773 4,038,055
Change in Net Position 1,466,777 (361,268) (179,104) 926,405
Net Position, January 1 35,087,132 16,615,145 15,906,321 67,608,598
Net Position, December 31 36,553,909$ 16,253,877$ 15,727,217$ 68,535,003$
Operating Revenues
Business-type Activities - Enterprise Funds
City of Chanhassen, Minnesota
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended December 31, 2024
The notes to the financial statements are an integral part of this statement.
57
Surface Water
Water Sewer Management Total
Cash Flows from Operating Activities
Receipts from customers and users and grants 4,097,627$ 4,199,644$ 2,103,844$ 10,401,115$
Payments to suppliers (2,124,325) (4,070,513) (1,608,295) (7,803,133)
Payments to employees (1,164,613) (802,700) (1,014,134) (2,981,447)
Net Cash Provided (Used)
by Operating Activities 808,689 (673,569) (518,585) (383,465)
Cash Flows from Noncapital
Financing Activities
Receipts (payments) from (to) other funds (975,000) - 975,000 -
Cash Flows from Capital
and Related Financing Activities
Acquisition of capital assets (1,574,341) (1,423,878) (479,624) (3,477,843)
Connection charges 879,012 273,267 164,773 1,317,052
Intergovernmental revenue - 78,080 - 78,080
Principal paid on bonds (1,470,000) (165,000) (120,000) (1,755,000)
Principal paid on leases (19,104) (19,103) - (38,207)
Interest and fiscal charges (586,234) (39,450) (23,159) (648,843)
Net Cash Provided (Used) by Capital
and Related Financing Activities (2,770,667) (1,296,084) (458,010) (4,524,761)
Cash Flows from Investing Activities
Interest received from investments 203,814 217,946 - 421,760
Net Increase (Decrease)
in Cash and Cash Equivalents (2,733,164) (1,751,707) (1,595) (4,486,466)
Cash and Cash Equivalents, January 1 6,113,338 5,874,424 5,076 11,992,838
Cash and Cash Equivalents, December 31 3,380,174$ 4,122,717$ 3,481$ 7,506,372$
City of Chanhassen, Minnesota
Statement of Cash Flows
Proprietary Funds
For the Year Ended December 31, 2024
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
58
Surface Water
Water Sewer Management Total
Reconciliation of Operating Income (Loss)
to Net Cash Provided (Used)
By Operating Activities
Operating income (loss)(1,349,719)$ (1,586,158)$ (1,738,708)$ (4,674,585)$
Adjustments to reconcile operating income (loss)
to net cash provided (used)
by operating activities
Depreciation 1,950,312 872,581 1,053,605 3,876,498
Miscellaneous revenue 5,174 101,069 1,426 107,669
(Increase) decrease in assets/deferred outflows
of resources
Accounts receivable 36,448 37,225 (9,680) 63,993
Due from other governments 927 (149,444) (18) (148,535)
Special Assessments (88,336) (18,565) - (106,901)
Inventory 8,092 - - 8,092
Prepaid items (6,369) (4,447) (1,387) (12,203)
Deferred pension resources 47,186 21,056 16,380 84,622
Deferred other post employment benefits 483 507 453 1,443
Increase (decrease) in liabilities/deferred inflows
of resources
Due to other governments 1,043 (12,379) 8,409 (2,927)
Accounts payable (4,963) (18,930) (15,771) (39,664)
Contracts payable 286,401 107,668 208,683 602,752
Salaries payable 9,240 6,057 2,901 18,198
Compensated absences payable (2,922) (80) (15,283) (18,285)
Other postemployment benefits payable (2,021) (1,740) (1,430) (5,191)
Deferred pension resources 47,085 26,845 17,024 90,954
Deferred post employment benefits 2,959 1,157 390 4,506
Net pension liability (132,331) (55,991) (45,579) (233,901)
Net Cash Provided (Used)
by Operating Activities 808,689$ (673,569)$ (518,585)$ (383,465)$
Supplemental Schedule of Noncash
Capital and Related Financing Activities
Amortization of bond discounts 93,328$ 14,367$ 10,937$ 118,632$
Purchase of capital assets on account -$ -$ 164,950$ 164,950$
Contributions of capital assets 49,360$ 24,317$ 1,404,623$ 1,478,300$
Assets acquired through a lease 109,852$ 109,851$ -$ 219,703$
Disposal of capital assets 44,139$ 44,139$ -$ 88,278$
City of Chanhassen, Minnesota
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended December 31, 2024
Business-type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
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60
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies
A. Reporting Entity
The City of Chanhassen, Minnesota (the City) was incorporated in 1967 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 as applied to governmental units by the Governmental Accounting Standards Board (GASB).
The following is a summary of the significant accounting policies.
In accordance with GASB pronouncements and accounting principles generally accepted in the United States of America,
the financial statements of the reporting entity should include those of the City (the primary government) and its
component units. The component unit discussed below is included in the City’s reporting entity because of the
significance of its operational or financial relationships with the City.
Component Units
The City has one component unit, the Economic Development Authority (EDA). The financial statements of the EDA are
included as a blended component unit because its governing body is substantively the same as the City Council, the City
is in a relationship of financial burden with the EDA, and because management of the City has operational responsibilities
for the EDA. Separate financial statements for the EDA are not prepared.
Jointly Governed Organizations
Southwest Transit Commission – The City, in conjunction with the Cities of Eden Prairie and Chaska, established the
Southwest Transit Commission (the Commission). The purpose of the Commission is to provide public transit service for
the three cities. The Commission’s board is composed of two commissioners from each of the cities.
Joint Powers Agreement
Pursuant to a joint powers agreement dated April 14, 1994, the City and Independent School District No. 112 (ISD No. 112)
jointly constructed the Chanhassen Recreation Center and Bluff Creek Elementary. The City entered into a revised joint
powers agreement with ISD No. 112 in 2022 to provide for the mutual long-term use of the facility. According to the terms
of the agreement, which expires in 2093, the City reimburses ISD No. 112 24% of the cost to operate and maintain the
facility.
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 and its component units. 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 segment is offset
by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Amounts
reported as 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 segment and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental
funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
61
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
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 financial statements. 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 revenues to be available if they are collected within
60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses 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.
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded
on the accrual basis when the exchange takes place. On a modified accrual basis, revenue is recorded in the year in which
the resources are measurable and become available.
Non-exchange transactions, in which the City receives value without directly giving equal value in return, include property
taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized in the year in
which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify
the year when the resources are required to be used or the year when use is first permitted, matching requirements, in
which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which
the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-
exchange transactions must also be available before it can be recognized.
Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. Grants and
entitlements received before eligibility requirements are met are also recorded as unearned revenue.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
62
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
The City reports the following major governmental funds:
The General fund is the City’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 Civic Campus fund accounts for the revenues and expenditures related to the construction of the City’s Civic
Campus facility.
The Pavement Management Program (PMP) fund accounts for the City’s street reconstruction and other significant
street maintenance projects. Individual property owners pay a portion of the cost of the annual project with
assessments and the City funds its portion with the reserves created in this fund, an annual tax levy, and franchise
fees.
The City reports the following major proprietary funds:
The Water fund accounts for the water service charges which are used to finance the water system operating
expenses.
The Sewer fund accounts for the sewer service charges which are used to finance the sanitary sewer system
operating expenses.
The Surface Water Management fund accounts for the surface water charges which are used to finance the surface
water system operating expenses.
As a general rule, the effect of interfund activity has been eliminated from government-wide financial statements.
Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sewer
function and various other functions of the City. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
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 City’s 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.
D. Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments
with original maturities of three months or less from the date of acquisition. The proprietary funds’ portion in the
government-wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of
the statement of cash flows.
Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other
authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of
the funds.
63
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
The City may also invest idle funds as authorized by Minnesota statutes, as follows:
1. Direct obligations or obligations guaranteed by the United States or its agencies.
2. Shares of investment companies registered under the Federal Investment Company Act of 1940 that received the
highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a
final maturity of thirteen months or less.
3. General obligations of a state or local government with taxing powers which is rated “A” or better; revenue
obligations rated “AA” or better.
4. General obligations of the Minnesota Housing Finance Agency rated “A” or better.
5. Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest
category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to
Minnesota Statute Section 126C.55.
Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the
pool is the same as the fair value of the shares.
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level
1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs;
Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of
December 31, 2024:
• US government agency securities of $4,397,710 are valued using quoted market prices (Level 1 inputs)
• Municipal securities of $22,351,935 are valued using quoted market prices (Level 2 inputs)
• Brokered certificates of deposit of $6,760,593 are valued using a matrix pricing model (Level 2 inputs)
• U.S Treasury Obligations of $5,444,409 are valued using a matrix pricing model (Level 2 inputs)
64
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
Investment Policy
The City’s investment policy incorporates Minnesota statutes as described above which reduces the City’s exposure to
credit, custodial credit and interest rate risks. Specific risk information for the City is as follows:
• Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated
credit risk. Minnesota statutes and the City’s investment policy limit the City’s investments to the list above.
• Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment or collateral
securities that are in the possession of an outside party. The City’s investment policy does not address custodial
credit risk but typically limits its exposure by purchasing insured or registered investments.
• Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a
government’s investment in a single issuer. The City’s investment policy states investments shall be diversified by
limiting investments to avoid over concentration in securities from a specific issuer or business sector (excluding
U.S. Treasury securities).
• Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. The City’s investment policy requires the City to diversify its investment portfolio to eliminate the
risk of loss resulting from over concentration of assets in a specific maturity. The policy also states the City’s
investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which
might be reasonable.
E. Property Taxes
The City Council annually adopts a tax levy in December and certifies it to the County for collection the following year.
The County is responsible for collecting all property taxes for the City. These taxes attach an enforceable lien on taxable
property within the City on January 1 and are payable by the property owners in two installments. The taxes are collected
by the County Treasurer and tax settlements are made to the City during January, July and December each year.
Delinquent taxes receivable include the past six years’ uncollected taxes. Delinquent taxes have been offset by a deferred
inflow of resources for taxes not received within 60 days after year end in the fund financial statements.
F. Accounts Receivable
Accounts receivable include amounts billed for services provided before year end. The City annually certifies delinquent
utility accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful
accounts established.
G. Special Assessments
Special assessments represent the financing for public improvements paid for by benefiting property owners. These
assessments are recorded as receivable upon certification to the County. Special assessments are recognized as revenue
when they are received in cash or within 60 days after year end. All governmental special assessments receivable are
offset by deferred inflows of resources in the fund financial statements.
65
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
H. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal
year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from
other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported
as “due to/from other funds.”
I. Inventories and Prepaid Items
Inventories of materials and supplies are recorded at cost, which approximates market, using the first in, first out (FIFO)
method. Inventories consist of expendable supplies held for consumption. Inventories of governmental funds are
recorded as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in
both government-wide and fund financial statements. The City recognizes prepaid items using the consumption method.
J. Lease Receivable
The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease
term.
A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of
the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized
on a straight-line basis over the term of the lease.
K. Capital Assets
Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated
useful life in excess of two years. As the City constructs or acquires capital assets each period, including infrastructure
assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs
which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item
or extend its useful life beyond the original estimate. In the case of donations, the City values these capital assets at the
estimated fair value of the item at the date of its donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are
not capitalized.
Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated
useful lives:
Assets Years
Buildings and structures 10 - 30
Machinery and equipment (including software)3 - 10
Drainage systems 30
Water and sewer lines 30
Streets 30
Trails 25
Sidewalks 25
Other improvements 10 - 25
Temporary easements 2
66
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
L.Deferred Outflows of Resources
In addition to assets, the statement of net 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
assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The City has two items which qualify for reporting in this category. Accordingly, the items, deferred pension
resources and deferred other postemployment benefit resources, are reported only in the statement of net position. These
items result from actuarial calculations and current year pension/OPEB contributions made subsequent to the
measurement dates.
M.Compensated Absences
The City compensates all employees upon termination for unused vacation, sick, and PTO hours up to a maximum based
upon length of service. The City compensates nonexempt employees for unused comp time. All vacation, PTO, and
comp time 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. Estimated use is recorded for nonvesting accumulating rights to receive sick pay benefits.
An additional liability is recognized for that portion of accumulating sick leave benefits that is vested as severance pay.
The General fund is typically used to liquidate governmental compensated absences.
N.Pensions
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense,
information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions
to/deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA
except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll
paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. The General fund is typically used to liquidate the governmental net pension
liability.
The total pension expense for the General Employee Plan (GERP), Police and Fire Plan (PEPFP), Public Employee Defined
Contribution Plan (PEDCP), and Chanhassen Fire Relief Association (FRA) is as follows:
GERP PEPFP PEDCP FRA Total
City's proportionate share 211,023$ 258,296$ 2,484$ 37,288$ 509,091$
Proportionate share of State's contribution 2,008 3,433 - - 5,441
Total pension expense 213,031$ 261,729$ 2,484$ 37,288$ 514,532$
O.Long-term Obligations
In the government-wide financial statements, long-term debt is reported as a liability in the statement of net position. The
recognition of bond premiums and discounts are delayed and amortized over the life of the bonds using the straight-line
method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported
as an expense in the period incurred.
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 is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while 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.
67
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
P.Deferred Inflows of Resources
In addition to liabilities, the statement of net 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
assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
The City has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies as
needing to be reported in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental
funds balance sheet. The governmental funds report unavailable revenues from three sources: property taxes, special
assessments, and intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in
the period that the amounts become available.
Furthermore, the City has additional items which qualify for reporting in this category on the statement of net position.
The items, deferred pension resources and deferred other postemployment benefit resources, are reported only in the
statement of net position and result from actuarial calculations involving net differences between projected and actual
earnings on plan investments and changes in proportions. Furthermore, the City reports deferred lease resources related
to cell tower leases which are recorded under GASB 87, and reported in the governmental funds and the statement of net
position.
Q.Fund Balance
In the fund financial statements, fund balance is divided into five classifications based primarily on the extent to which the
City is bound to observe constraints imposed upon the use of resources reported in the governmental funds. These
classifications are defined as follows:
Nonspendable - Amounts that cannot be spent because they are not in spendable form, such as prepaid items.
Restricted - Amounts related to externally imposed constraints established by creditors, grantors, or contributors; or
constraints imposed by state statutory provisions.
Committed - Amounts constrained for specific purposes that are internally imposed by formal action (resolution) of
the City Council, which is the City’s highest level of decision-making authority. Committed amounts cannot be used
for any other purpose unless the City Council modifies or rescinds the commitment by resolution.
Assigned - Amounts constrained for specific purposes that are internally imposed. In governmental funds other than
the General fund, assigned fund balance represents all remaining amounts that are not classified as nonspendable
and are neither restricted nor committed. In the General fund, assigned amounts represent intended uses established
by the City Council itself or by an official to which the governing body delegates the authority. The City Council has
adopted a fund balance policy which delegates the authority to assign amounts for specific purposes to the City
Manager and/or Finance Director.
Unassigned - The residual classification for the General fund and also 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) restricted, 2) assigned, and 3) committed.
The City’s policy for General Fund reserve balances is to maintain an unassigned fund balance at a minimum of 50% of
the ensuing year’s budgeted tax levy to provide cash flow between property tax settlements.
68
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 1: Summary of Significant Accounting Policies (Continued)
R. Net Position
In the government-wide financial statements, net position represents the difference between assets, deferred outflows of
resources, liabilities and deferred inflows of resources. Net position is displayed in three components:
a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any
outstanding debt attributable to acquire capital assets.
b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their
use through external restrictions imposed by creditors, grantors, laws, or regulations of other governments.
c. Unrestricted net position - All other net position balances that do not meet the definition of “restricted” or “net
investment in capital assets”.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources
first, then unrestricted resources as they are needed.
Note 2: Stewardship, Compliance and Accountability
A. Budgetary Information
An annual budget is adopted on a basis consistent with accounting principles generally accepted in the United States of
America for the General fund and certain special revenue, debt service, and capital project funds. All annual
appropriations lapse at fiscal year-end. The City does not use encumbrance accounting.
The City Council adopts budgets prior to January 1. The budgets are prepared by fund, function, and activities. The
budgets are adopted on a basis consistent with generally accepted accounting principles and all appropriations lapse at
the end of the budget year to the extent that they have not been expended. The expenditures appropriated in the budget
resolution may not legally exceed estimated revenues available from various sources.
Formal budgetary integration is employed as a management control device during the year. Budget revisions between
functions or activities may be made by the City Manager. The legal level of budgetary control is therefore at the fund level.
There were no budget amendments made in 2024 in the General fund and certain special revenue, debt service, and
capital project funds. All budget amendments are approved based on unanticipated expenditures and revenues
encountered during the year.
69
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 2: Stewardship, Compliance and Accountability (Continued)
B.Excess of Expenditures Over Appropriations
For the year ended December 31, 2024, expenditures exceeded appropriations in the following funds:
Excess of
Expenditures
Over
Budget Actual Appropriations
Charitable Gambling fund 50,000$ 72,147$ 22,147$
Cable TV fund 40,000 214,701 174,701
2016A G.O. Refunding Bonds Fund 453,725 454,151 426
Transportation Infrastructure Management fund 281,000 306,688 25,688
Frontier Development TIF #11 fund 265,964 278,002 12,038
Lake Place Senior Apt TIF #12 fund 118,000 147,842 29,842
Fund
The excess expenditures were funded by greater than anticipated revenues and available fund balance.
C.Deficit Fund Balance
As of December 31, 2024, the following funds reported deficit fund balance:
Amount
Nonmajor
Lake Place Senior Apt TIF #12 20,494
Fund
The deficit is expected to be eliminated with future tax increment collections.
Note 3: Deposits and Investments
Deposits
Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City’s deposits and
investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside
party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at those
depository banks, all of which are members of the Federal Reserve System.
Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The fair value of
collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of
irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral
pledged equal to 100 percent of the deposits not covered by insurance or bonds.
70
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Deposits and Investments (Continued)
Authorized collateral in lieu of a corporate surety bond includes:
• United States government Treasury bills, Treasury notes, Treasury bonds;
• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation
service available to the government entity;
• General obligation securities of any state or local government with taxing powers which is rated “A” or better by a
national bond rating service, or revenue obligation securities of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service;
• General obligation securities of a local government with taxing powers may be pledged as collateral against funds
deposited by that same local government entity;
• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by
written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc., or Standard
& Poor’s Corporation; and
• Time deposits that are fully insured by any federal agency.
Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a 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 selection should be approved by the government entity.
Investments are carried at fair value. Investment and dividend income are recognized as revenue when earned.
At year end, the City’s carrying amount of deposits was $2,295,717 and the bank balance was $2,354,302. Of the bank
balance, $250,000 was covered by federal depository insurance and the remaining was covered by collateral in the City’s
name.
71
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 3: Deposits and Investments (Continued)
Investments
As of December 31, 2024, the City had the following investments that are insured or registered, or securities held by the
City or its agent in the City’s name.
Credit Segmented
Quality/Time
Ratings (1)Distribution (2)Amount Level 1 Level 2
Pooled Investments at Amortized Costs
Brokered money market N/A Less than 1 year 10,631,451$ -$ -$
Non-pooled Investments at Fair Value
U.S. government agency securities N/A Less than 1 year 2,973,540 2,973,540 -
U.S. government agency securities N/A 1 to 3 years 1,424,170 1,424,170 -
Municipal securities AA Less than 1 year 2,985,007 - 2,985,007
Municipal securities AA 1 to 3 years 1,141,875 - 1,141,875
Municipal securities AA More than 3 years 1,274,538 - 1,274,538
Municipal securities AA+1 to 3 years 1,272,414 - 1,272,414
Municipal securities AA+More than 3 years 623,154 - 623,154
Municipal securities AAA Less than 1 year 1,580,025 - 1,580,025
Municipal securities AAA 1 to 3 years 3,488,494 - 3,488,494
Municipal securities AAA More than 3 years 2,254,287 - 2,254,287
Municipal securities N/A 1 to 3 years 2,839,911 - 2,839,911
Municipal securities N/A More than 3 years 4,892,231 - 4,892,231
U.S. treasury obligations AAA Less than 1 year 5,444,409 - 5,444,409
Brokered certificates of deposit N/A Less than 1 year 2,690,552 - 2,690,552
Brokered certificates of deposit N/A 1 to 3 years 4,070,042 - 4,070,042
Total Investments 49,586,099$ 4,397,710$ 34,556,938$
(1) Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk.
(2) Interest rate risk is disclosed using the segmented time distribution method.
N/A Indicates not applicable or available.
Types of Investments
Fair Value Measurement Using
A reconciliation of cash and investments as shown on the statement of net position for the City follows:
Primary
Government
Deposits 2,295,717$
Investments 49,586,099
Petty Cash 635
Total 51,882,451$
72
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Capital Assets
Capital asset activity for the year ended December 31, 2024, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities
Capital Assets not being Depreciated
Land 19,915,918$ 4,300$ -$ 19,920,218$
Permanent easements 2,826,748 - - 2,826,748
Construction in progress 3,826,559 15,853,577 (83,620) 19,596,516
Total Capital Assets not
being Depreciated 26,569,225 15,857,877 (83,620) 42,343,482
Capital Assets, being Depreciated/Amortized
Buildings and structures 24,852,984 - - 24,852,984
Temporary easements 3,436,870 - - 3,436,870
Right to use lease assets - vehicles 749,839 255,365 - 1,005,204
Machinery and equipment 9,782,613 346,529 (417,822) 9,711,320
Other improvements 12,762,939 - - 12,762,939
Infrastructure 125,572,931 73,688 - 125,646,619
Total Capital Assets
being Depreciated/Amortized 177,158,176 675,582 (417,822) 177,415,936
Less Accumulated Depreciation/Amortization for
Buildings and structures (11,933,636) (618,357) - (12,551,993)
Temporary easements (3,436,870) - - (3,436,870)
Right to use lease assets - vehicles (152,686) (220,541) - (373,227)
Machinery and equipment (6,221,841) (494,076) 409,120 (6,306,797)
Other improvements (5,967,402) (497,719) - (6,465,121)
Infrastructure (103,481,065) (2,365,967) - (105,847,032)
Total Accumulated Depreciation/Amortization (131,193,500) (4,196,660) 409,120 (134,981,040)
Total Capital Assets
being Depreciated/Amortized, Net 45,964,676 (3,521,078) (8,702) 42,434,896
Governmental Activities
Capital Assets, Net 72,533,901$ 12,336,799$ (92,322)$ 84,778,378$
73
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Capital Assets (Continued)
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities
Capital Assets not being Depreciated
Land 2,116,335$ -$ -$ 2,116,335$
Permanent easements 7,088,204 - - 7,088,204
Construction in progress 3,126,181 4,897,214 (425,567) 7,597,828
Total Capital Assets
not being Depreciated 12,330,720 4,897,214 (425,567) 16,802,367
Capital Assets being Depreciated/Amortized
Buildings and structures 28,189,036 - - 28,189,036
Right to use lease assets - vehicles 48,901 219,703 - 268,604
Machinery and equipment 2,648,473 74,138 (104,716) 2,617,895
Other improvements 127,781,875 425,567 - 128,207,442
Total Capital Assets
being Depreciated/Amortized 158,668,285 719,408 (104,716) 159,282,977
Less Accumulated Depreciation/Amortization for
Buildings and structures (5,545,637) (565,335) - (6,110,972)
Right to use lease assets - vehicles (13,142) (39,551) - (52,693)
Machinery and equipment (1,439,612) (208,551) 88,278 (1,559,885)
Other improvements (84,898,379) (3,063,061) - (87,961,440)
Total Accumulated
Depreciation/Amortization (91,896,770) (3,876,498) 88,278 (95,684,990)
Total Capital Assets
being Depreciated/Amortized, Net 66,771,515 (3,157,090) (16,438) 63,597,987
Business-type Activities
Capital Assets, Net 79,102,235$ 1,740,124$ (442,005)$ 80,400,354$
74
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 4: Capital Assets (Continued)
Depreciation/amortization expense was charged to functions/programs of the City as follows:
Governmental Activities
General government 303,836$
Public safety 277,509
Public works 2,579,410
Culture and recreation 1,031,558
Community development 4,347
Total Depreciation/Amortization Expense - Governmental Activities 4,196,660$
Business-type Activities
Water 1,950,312$
Sewer 872,581
Surface water management 1,053,605
Total Depreciation/Amortization Expense - Business-type Activities 3,876,498$
Note 5: Construction Commitments
The City has active construction projects as of December 31, 2024. The projects include various street and road
improvements and public facilities projects. At year end, the City’s commitments with contractors are as follows:
Remaining
Spent-to-Date Commitment
Civic Campus - City Hall 5,980,192$ 20,070,301$
Galpin Blvd Improvements 7,790,788 8,196,607
2023 Street Rehab Project 23-01 5,158,680 202,133
2024 Pavement Rehab #24-01 6,904,530 815,698
Hwy 101-Pioneer to Flying Cloud - construction 16,534,742 482,819
2024 I & I 11,650 348,350
2023 Pond Maintenance 214,047 27,755
2024 Pond Maintenance - 378,833
Total 42,594,629$ 30,522,496$
Project
75
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 6: Interfund Receivables, Payables, and Transfers
The composition of interfund balances as of December 31, 2024 are as follows:
Amount
Due from/to other Funds
Governmental Governmental
General Civic campus 250,000$
Nonmajor governmental 21,000
Business-type Business-type
Water Surface Water Management 1,060,000
Total Due from/to other Funds 1,331,000$
Receivable Fund Payable Fund
All interfund loan balances represent a transfer of funds to cover a cash deficit.
The composition of interfund transfers for the year ended December 31, 2024 is as follows:
Other
Governmental
General Funds Total
Transfers Out
Other Governmental Funds 1,737,106$ 938,120$ 2,675,226$
Transfers in
Fund
During the year, transfers were used for the following:
•Budgeted transfer of $30,000 from the Cable TV fund to the General fund for communication expenses
incurred in the General fund.
•Transfer of $938,120 from the Grant fund to the Park Development fund for Lake Ann Preserve Project actual
costs for the year.
•Transfer of $1,407,106 from the Grant fund to the General fund for budgeted public safety costs which were
funded by ARPA revenues.
•Budgeted transfer of $300,000 for the use of Public Safety Aid from the Grant fund to the General fund.
Note 7: Lease Receivable
The City leases space on its water towers for cellular tower antenna sites. The leases are non-cancellable for a period of
five years, with one to four renewal periods of five years each at the lessee’s option. The City considers the likelihood of
these options being exercised to be greater than 50%. The agreements call for varying annual lease payments with
increases of 2% to 4% per year. The lease receivables are measured at the present value of the future minimum lease
payments expected to be received during the lease term at a discount rate of 3% which is based on the rate available to
finance equipment over the same time periods.
At December 31, 2024, the City recorded $3,271,051 in lease receivables and deferred inflows of resources for these
arrangements.
Lease related inflows of resources (e.g. lease revenue) recognized during the year ended December 31, 2024 was
$335,048. Of this amount, $101,991 was interest revenue. No other variable lease payments were received.
76
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 8: Long-term Liabilities
General Obligation Improvement Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities.
General obligation bonds have been issued for both general government and proprietary activities. These bonds are
reported in the proprietary funds if they are expected to be repaid from proprietary fund revenues. In addition, general
obligation bonds have been issued to refund both general obligation and revenue bonds.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. The G.O. Improvement
Bonds have been issued to finance improvements. They will be repaid with special assessment collections and ad
valorem tax levies. General obligation bonds currently outstanding are as follows:
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Bonds,
Series 2016A 4,805,000$ 2.00 - 3.00 %03/03/16 02/01/30 2,620,000$
G.O. Capital Improvement Plan Bonds
Series 2024A 24,250,000 4.00 - 5.00 08/15/24 02/01/54 24,250,000
Total General Obligation Bonds 26,870,000$
Interest
RateDescription
Annual debt service requirements to maturity for general obligation improvement bonds are as follows:
Year Ending
December 31,Principal Interest Total
2025 410,000$ 1,060,302$ 1,470,302$
2026 420,000 1,092,950 1,512,950
2027 510,000 1,082,450 1,592,450
2028 520,000 1,069,750 1,589,750
2029 535,000 1,056,800 1,591,800
2030 - 2034 2,970,000 4,955,775 7,925,775
2035 - 2039 3,765,000 4,126,625 7,891,625
2040 - 2044 4,785,000 3,104,575 7,889,575
2045 - 2049 5,845,000 2,025,100 7,870,100
2050 - 2054 7,110,000 733,000 7,843,000
Total 26,870,000$ 20,307,327$ 47,177,327$
Governmental Activities
General Obligation Revenue Bonds
The following bonds will be repaid solely from revenue derived from the activities of the fund. They are backed by the full
faith and credit of the City. Annual net operating revenues, principal and interest payments, and the percentage of revenue
required to cover principal and interest payments are as follows:
Surface Water
Water Sewer Management
Net Operating Revenues 4,143,414$ 4,229,359$ 2,112,116$
Principal and Interest 2,056,234 204,450 143,159
Percentage of Revenues 50%5%7%
77
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 8: Long-term Liabilities (Continued)
The components of the general obligation revenues bonds are as follows:
Authorized Issue Maturity Balance at
and Issued Date Date Year End
G.O. Water Revenue
Refunding Bonds,
Series 2011B 3,720,000$ 2.00 - 3.00 %10/06/11 02/01/25 575,000$
G.O. Water Revenue
Bonds, Series 2016A 1,565,000 2.00 - 3.00 03/03/16 02/01/26 345,000
G.O. Water Revenue
Bonds, Series 2016B 3,630,000 3.50 - 4.00 12/29/16 02/01/42 3,630,000
G.O Water Revenue
Bonds, Series, 2017A 10,000,000 2.00 - 4.00 02/01/17 02/01/38 8,670,000
G.O. Water Revenue
Bonds, Series 2018A 3,595,000 3.00 - 4.00 03/15/18 02/01/30 1,950,000
G.O. Water Revenue
Bonds, Series 2020A 3,415,000 2.00 - 3.00 04/02/20 02/01/31 2,455,000
G.O. Sewer Revenue
Bonds, Series 2020A 1,540,000 2.00 - 3.00 04/02/20 02/01/31 1,095,000
G.O. Surface Water Revenue
Bonds, Series 2020A 1,265,000 2.00 - 3.00 04/02/20 02/01/31 800,000
Total G.O. Revenue Bonds 19,520,000$
Rate
Interest
Description
Annual debt service requirements to maturity for general obligation revenue bonds are as follows:
Year Ending
December 31,Principal Interest Total
2025 1,810,000$ 576,763$ 2,386,763$
2026 1,275,000 530,538 1,805,538
2027 1,550,000 488,188 2,038,188
2028 1,600,000 440,938 2,040,938
2029 1,650,000 395,563 2,045,563
2030 - 2034 4,980,000 1,474,713 6,454,713
2035 - 2039 3,990,000 858,650 4,848,650
2040 - 2042 2,665,000 161,628 2,826,628
Total 19,520,000$ 4,926,981$ 24,446,981$
Business-type Activities
78
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 8: Long-term Liabilities (Continued)
Project Financing
The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard – Phase 3 project, and a Joint
Powers Agreement with Carver County for a pedestrian trail to the Arboretum. The City is paying its share of these
projects at 0% interest according to the following schedule:
Year Ending Lyman Pedestrian
December 31,Boulevard Trail Total
2025 111,108$ 96,309$ 207,417$
Lease Payable
Lease agreements are summarized as follows:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental activities 614,439$ 255,365$ (194,623)$ 675,181$ 244,098$
Business-type activities 37,140 219,703 (38,207) 218,636 79,498
Total lease liability 651,579$ 475,068$ (232,830)$ 893,817$ 323,596$
The City leases multiple vehicles from Enterprise Rent-a-Car. As of December 31, 2024, the City had 40 outstanding
vehicle leases, 14 of which were entered into during 2024. Each lease requires 48 monthly payments ranging from $516 to
$1,082. The leases are all under a master lease agreement with individual schedules for each vehicle. The lease liability is
measured at discount rates ranging from 10.0% to 13.3% as stated in the lease agreements.
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending
December 31,Principal Interest Total Principal Interest Total
2025 244,098$ 63,563$ 307,661$ 79,498$ 23,562$ 103,060$
2026 246,298 37,083 283,381 86,517 12,874 99,391
2027 134,908 12,394 147,302 52,621 2,337 54,958
2028 43,507 2,576 46,083 - - -
2029 6,370 141 6,511 - - -
Total 675,181$ 115,757$ 790,938$ 218,636$ 38,773$ 257,409$
Governmental Activities Business-type Activities
79
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 8: Long-term Liabilities (Continued)
Changes in Long-term Liabilities
During the year ended December 31, 2024, the following changes occurred in long-term liabilities:
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
Governmental Activities
Bonds Payable
General obligation bonds 3,015,000$ 24,250,000$ (395,000)$ 26,870,000$ 410,000$
Bond premium 111,893 1,192,800 (15,985) 1,288,708 -
Project financing 448,727 - (241,310) 207,417 207,417
Lease payable 614,439 255,365 (194,623) 675,181 244,098
Compensated absences*678,920 - (488) 678,432 113,230
Governmental Activity
Long-term Liabilities 4,868,979$ 25,698,165$ (847,406)$ 29,719,738$ 974,745$
Business-type Activities
Bonds Payable
G.O. revenue bonds 21,275,000$ -$ (1,755,000)$ 19,520,000$ 1,810,000$
Bond premium 894,245 - (118,632) 775,613 -
Lease payable 37,140 219,703 (38,207) 218,636 79,498
Compensated absences*283,612 - (18,285) 265,327 44,282
Business-type Activity
Long-term Liabilities 22,489,997$ 219,703$ (1,930,124)$ 20,779,576$ 1,933,780$
*The change in compensated absences is presented as a net change.
Nonexchange Financial Guarantee of Debt
On August 1, 2014, the Carver County Community Development Agency (CDA), a legally separate entity from the City,
issued $2,110,000 of Housing Development Refunding Bonds, Series 2014 and $2,370,000 of Taxable Housing
Development and Refunding Bonds, Series 2014T. The proceeds were used to refund a portion of prior bonds and to fund
certain capital improvements of the Centennial Hill Apartments, which are located within the City.
In accordance with Minnesota Statutes Section 469.034, Subd. 2, the City has pledged its full faith and credit and taxing
powers to the payment of debt service on the Series 2014 and Series 2014T bonds. In the event that the Carver County
CDA is unable to pay the debt service on the bonds due to insufficient housing revenues and cash reserves, the City is
obligated to pay the debt service. The City’s guarantee extends until the bonds have fully matured, which is scheduled to
occur in 2034. The total amount of outstanding guaranteed debt, including interest, at December 31, 2024, is $3,126,701.
The City’s management does not expect the City will be required to make any debt service payments towards these
bonds. Accordingly, the bonds are not reflected in the financial statements of the City.
80
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 8: Long-term Liabilities (Continued)
Conduit Debt Obligations
The City of Chanhassen has issued revenue bonds to provide financial assistance to private-sector entities for the
acquisition and construction of facilities deemed to be in the public interest. The bonds are secured by the property
financed and are payable solely from the private-sector entity served by the bond issuance. Neither the City of
Chanhassen or the State of Minnesota, or any political subdivision thereof is obligated in any manner for repayment of the
bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of
December 31, 2024, there was one bond outstanding with Presbyterian Homes with a principal amount of $5,107,756.
Authorized Issue Maturity Balance at
and Issued Date Date Year End
Presbyterian Homes, Series 2014B 9,300,000$ June 2014 2034 5,107,756$
Project Name
81
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 9: Components of Fund Balance
At December 31, 2024, portions of the City’s fund balance are not available for appropriation due to not being in spendable
form (nonspendable), legal restrictions (restricted), City Council action (committed), policy and/or intent (assigned), and
available for spending (unassigned). The following is a summary of the components of fund balance:
Pavement Other
General Civic Management Governmental
Fund Campus Program (PMP)Funds Totals
Nonspendable
Prepaid items 135,138$ -$ -$ -$ 135,138$
Restricted for
Debt service -$ -$ -$ 1,317,101$ 1,317,101$
Tax increment - - - 54,927 54,927
Capital projects - 16,130,983 - 672,134 16,803,117
Communications - -- 43,886 43,886
Public safety - -- 950,174 950,174
Local affordable housing aid - -- 126,855 126,855
Total Restricted -$ 16,130,983$ -$ 3,165,077$ 19,296,060$
Commited for
Cemetery -$ -$ -$ 72,679$ 72,679$
Cable TV - - - 71,680 71,680
Total Committed -$ -$ -$ 144,359$ 144,359$
Assigned for
Payout of compensated
absences for retirement 100,000$ -$ -$ -$ 100,000$
Laserfiche records scanning 100,000 - - - 100,000
Land purchase - new community -
center 2,100,000 - - - 2,100,000
Hardware/software for new city hall 165,000 - - - 165,000
Grants - - - 148,217 148,217
Lake Ann Park Preserve 1,675,000 - - - 1,675,000
Fire relief pension conversion
contractual services 15,000 - - - 15,000
Health insurance premiums 30,000 - - - 30,000
Tree/planning contracting 40,000 - - - 40,000
Capital improvements - - 771,562 3,053,453 3,825,015
Debt service reserve - - - 1,126,781 1,126,781
Total Assigned 4,225,000$ -$ 771,562$ 4,328,451$ 9,325,013$
Unassigned 7,762,840$ -$ -$ (20,494)$ 7,742,346$
Total Fund Balance 12,122,978$ 16,130,983$ 771,562$ 7,617,393$ 36,642,916$
82
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide
A. Plan Description
The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the
Public Employees Retirement Association of Minnesota (PERA). These plan provisions are established and administered
according to Minnesota Statutes chapters 353, 353D, 353E, 353G and 356. Minnesota Statutes chapter 356 defines each
plan’s financial reporting requirements. PERA’s defined benefit pension plans are tax qualified plans under Section
401(a) of the Internal Revenue Code.
General Employees Retirement Plan (General Plan)
Membership in the General Plan includes employees of counties, cities, townships, schools in non-certified positions, and
other governmental entities whose revenues are derived from taxation, fees, or assessments. Plan membership is
required for any employee who is expected to earn more than $425 in a month, unless the employee meets exclusion
criteria.
Public Employees Police and Fire Plan (Police and Fire Plan)
Membership in the Police and Fire Plan includes full-time, licensed police officers and firefighters who meet the
membership criteria defined in Minnesota Statutes section 353.64 and who are not earning service credit in any other
PERA retirement plan or a local relief association for the same service. Employers can provide Police and Fire Plan
coverage for part-time positions and certain other public safety positions by submitting a resolution adopted by the
entity’s governing body. The resolution must state that the position meets plan requirements.
B. Benefits Provided
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only
be modified by the state Legislature. 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. When a member is
“vested,” they have earned enough service credit to receive a lifetime monthly benefit after leaving public service and
reaching an eligible retirement age. Members who retire at or over their Social Security full retirement age and meet the
vesting requirements qualify for a retirement benefit.
General Plan Benefits
The General Plan requires three years of service to vest. 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 General Plan members. Members hired prior to July 1, 1989, receive the higher of the Step or Level
formulas. Only the Level formula is used for members hired after June 30, 1989. Under the Step formula, General Plan
members receive 1.2 percent of the highest average salary for each of the first 10 years of service and 1.7 percent for
each additional year. Under the Level formula, General Plan members receive 1.7 percent of highest average salary for all
years of service. For members hired prior to July 1, 1989 a full retirement benefit is available when age plus years of
service equal 90 and normal retirement age is 65. Members can receive a reduced requirement benefit as early as age 55
if they have three or more years of service. Early retirement benefits are reduced by .25 percent for each month under
age 65. Members with 30 or more years of service can retire at any age with a reduction of 0.25 percent for each month
the member is younger than age 62. The Level formula allows General Plan members to receive a full retirement benefit
at age 65 if they were first hired before July 1, 1989 or at age 66 if they were hired on or after July 1, 1989. Early
retirement begins at age 55 with an actuarial reduction applied to the benefit.
83
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide (Continued)
Benefit increases are provided to benefit recipients each January. The postretirement increase is equal to 50 percent of
the cost-of-living adjustment (COLA) announced by the SSA, with a minimum increase of at least 1 percent and a
maximum of 1.5 percent. The 2024 annual increase was 1.5 percent. Recipients that have been receiving the annuity or
benefit for at least a full year as of the June 30 before the effective date of the increase will receive the full increase.
Recipients receiving the annuity or benefit for at least one month but less than a full year as of the June 30 before the
effective date of the increase will receive a prorated increase.
Police and Fire Plan Benefits
Benefits for Police and Fire Plan members hired before July 1, 2010, are vested after three years of service. Members
hired on or after July 1, 2010, are 50 percent vested after five years of service and 100 percent vested after ten years.
After five years, vesting increases by 10 percent each full year of service until members are 100 percent vested after ten
years. Police and Fire Plan members receive 3 percent of highest average salary for all years of service. Police and Fire
Plan members receive a full retirement benefit when they are age 55 and vested, or when their age plus their years of
service equals 90 or greater if they were first hired before July 1, 1989. Early retirement starts at age 50, and early
retirement benefits are reduced by 0.417 percent each month members are younger than age 55.
Benefit increases are provided to benefit recipients each January. The postretirement increase is fixed at 1 percent.
Recipients that have been receiving the annuity or benefit for at least 36 months as of the June 30 before the effective
date of the increase will receive the full increase. Recipients receiving the annuity or benefit for at least 25 months but
less than 36 months as of the June 30 before the effective date of the increase will receive a reduced prorated increase.
C. Contributions
Minnesota Statutes chapters 353, 353E, 353G and 356 set the rates for employer and employee contributions.
Contribution rates can only be modified by the state Legislature.
General Employees Plan Contributions
General Plan members were required to contribute 6.50 percent of their annual covered salary in fiscal year 2024 and the
City was required to contribute 7.50 percent for Coordinated Plan members. The City’s contributions to the General
Employees Plan for the years ending December 31, 2024, 2023 and 2022, were $513,282, $490,256 and $477,007,
respectively. The City’s contributions were equal to the required contributions for each year as set by state statute.
Police and Fire Plan Contributions
Police and Fire Plan members were required to contribute 11.80 percent of their annual covered salary in fiscal year 2024
and the City was required to contribute 17.70 percent for Police and Fire Plan members. The City’s contributions to the
Police and Fire Plan for the years ending December 31, 2024, 2023 and, 2022 were $161,628, $135,550 and $86,742,
respectively. The City’s contributions were equal to the required contributions for each year as set by state statute.
84
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide (Continued)
D. Pension Costs
General Employees Fund Pension Costs
City's Proportionate Share of the Net Pension Liability 2,896,284$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 74,892
Total 2,971,176$
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 276,663$ -$
Changes in Actuarial Assumptions 14,981 1,132,541
Net Difference Between Projected and Actual Investment Earnings - 771,726
Changes in Proportion - 121,232
Contributions Paid to PERA Subsequent to the Measurement Date 259,638 -
Total 551,282$ 2,025,499$
At December 31, 2024, the City reported a liability of $2,896,284 for its proportionate share of the General Employees
Fund’s net pension liability. The City's net pension liability reflected a reduction due to the State of Minnesota’s
contribution of $16 million. The State of Minnesota is considered a non-employer contributing entity and the state’s
contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net
pension liability associated with the City totaled $74,892.
The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net
pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability
was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2023 through June 30, 2024, relative to the total employer contributions received from all of PERA’s
participating employers. The City’s proportionate share was 0.0783 percent at the end of the measurement period and
0.0819 percent for the beginning of the period.
For the year ended December 31, 2024, the City recognized pension expense of $211,023 for its proportionate share of
the General Employees Plan’s pension expense. In addition, the City recognized an additional $2,008 as pension expense
(and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $16 million to the General
Employees Fund.
During the plan year ended June 30, 2024, the State of Minnesota contributed $170.1 million to the General Employees
Fund. The State of Minnesota is not included as a non-employer contributing entity in the General Employees Plan
pension allocation schedules for the $170.1 million in direct state aid because this contribution was not considered to
meet the definition of a special funding situation. The City recognized $133,256 for the year ended December 31, 2024 as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-
behalf contributions to the General Employees Fund.
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
85
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide (Continued)
(957,955)$
(194,743)
(359,174)
(221,983)
Police and Fire Fund Pension Costs
City's Proportionate Share of the Net Pension Liability 805,121$
State of Minnesota's Proportionate Share of the Net Pension
Liability Associated with the City 30,691
Total 835,812$
2026
The $259,638 reported as deferred outflows of resources related to pensions resulting from the City's contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2025. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
2025
2027
2028
At December 31, 2024, the City reported a liability of $805,121 for its proportionate share of the Police and Fire Fund’s
net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportionate share
of the net pension liability was based on the City’s contributions received by PERA during the measurement period for
employer payroll paid dates from July 1, 2023 through June 30, 2024, relative to the total employer contributions received
from all of PERA’s participating employers. The City’s proportionate share was 0.0612 percent at the end of the
measurement period and 0.0506 percent for the beginning of the period.
The State of Minnesota contributed $37.4 million to the Police and Fire Fund in the plan fiscal year ended June 30, 2024.
The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation,
additional one-time direct state aid contribution of $19.4 million, and $9 million in supplemental state aid that does not
meet the definition of a special funding situation. Additionally, $9 million supplemental state aid was paid on October 1,
2024. Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until full funding is
reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90
percent funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90 percent
funded, whichever occurs later. The State of Minnesota’s proportionate share of the net pension liability associated with
the City totaled $30,691.
For the year ended December 31, 2024, the City recognized pension expense of $258,296 for its proportionate share of
the Police and Fire Plan’s pension expense. In addition, the City recognized an additional $3,433 as pension expense
(grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 million to the Police and Fire
Fund.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire Pension Plan pension
allocation schedules for the $28.4 million in supplemental state aid because this contribution was not considered to
meet the definition of a special funding situation. The City recognized $17,378 for the year ended December 31, 2024 as
revenue and an offsetting reduction of net pension liability for its proportionate share of the State of Minnesota’s on-
behalf contributions to the Police and Fire Fund.
86
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide (Continued)
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 244,130$ -$
Changes in Actuarial Assumptions 416,411 978,994
Net Difference Between Projected and Actual Investment Earnings - 256,603
Changes in Proportion 558,746 1,414
Contributions Paid to PERA Subsequent to the Measurement Date 78,137 -
Total 1,297,424$ 1,237,011$
62,978$
148,214
(10,566)
(236,904)
18,553
E. Long-term Expected Return on Investment
Domestic Equity 33.5 %5.10 %
International Equity 16.5 5.30
Fixed Income 25.0 0.75
Private Markets 25.0 5.90
Total 100.0 %
2026
At December 31, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
The $78,137 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31,
2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in
pension expense as follows:
2025
2027
2028
2029
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on
a regular basis of the long-term expected rate of return using a building-block method in which best-estimate ranges of
expected future rates of return are developed for each major asset class. These ranges are combined to produce an
expected long-term rate of return by weighting the expected future rates of return by the target asset allocation
percentages. The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
Long-term
Target Expected Return
Asset Class Allocation on Investment
87
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide (Continued)
F. Actuarial Assumptions
The following changes in actuarial assumptions and plan provisions occurred in 2024:
General Employees Fund
Changes in Actuarial Assumptions
Changes in Plan Provisions
Actuarial assumptions for the General Employees Plan are reviewed every four years. The General Employees Plan was
last reviewed in 2022. The assumption changes were adopted by the board and became effective with the July 1, 2023
actuarial valuation. The Police and Fire Plan were reviewed in 2024. PERA anticipates the experience study will be
approved by the Legislative Commission on Pensions and Retirement and become effective with the July 1, 2025
actuarial valuation.
The total pension liability for each of the cost-sharing defined benefit plans was determined by an actuarial valuation as
of June 30, 2024, using the entry age normal actuarial cost method. The long-term rate of return on pension plan
investments used to determine the total liability is 7.0%. The 7.0% assumption is based on a review of inflation and
investment return assumptions from a number of national investment consulting firms. The review provided a range of
investment return rates considered reasonable by the actuary. An investment return of 7.0% is within that range.
Inflation is assumed to be 2.25% for the General Employees Plan and Police and Fire Plan.
Benefit increases after retirement are assumed to be 1.25% for the General Employees Plan and 1.0% for the Police and
Fire Plan.
Salary growth assumptions in the General Employees Plan range in annual increments from 10.25% after one year of
service to 3.0% after 27 years of service. In the Police and Fire Plan, salary growth assumptions range in annual
increments from 11.75% after one year of service to 3.0% after 24 years of service.
Mortality rates for the General Employees Plan are based on the Pub-2010 General Employee Mortality Table. Mortality
rates for the Police and Fire Plan are based on the Pub-2010 Public Safety Employee Mortality tables. The tables are
adjusted slightly to fit PERA’s experience.
- Rates of merit and seniority were adjusted, resulting in slightly higher rates.
- Assumed rates of retirement were adjusted as follows: increase the rate of assumed unreduced retirements, slight
adjustments to Rule of 90 retirement rates, and slight adjustments to early retirement rates for Tier 1 and Tier 2
members.
- Minor increase in assumed withdrawals for males and females.
- Lower rates of disability.
- Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent
experience study.
- Minor changes to form of payment assumptions for male and female retirees.
- Minor changes to assumptions made with respect to missing participant data.
- The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors were updated
to reflect the changes in assumptions.
88
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 10: Defined Benefit Pension Plans - Statewide (Continued)
Police and Fire Fund
Changes in Actuarial Assumptions
Changes in Plan Provisions
G. Discount Rate
H. Pension Liability Sensitivity
1 Percent 1 Percent
Decrease (6.0%)Current (7.0%)Increase (8.0%)
General Employees Fund 6,325,951$ 2,896,284$ 75,071$
Police and Fire Fund 1,902,659 805,121 (96,187)
I. Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in a separately issued PERA financial
report that includes financial statements and required supplementary information. That report may be obtained on the
Internet at www.mnpera.org.
- There were no changes in actuarial assumptions since the previous valuation.
- The State contribution of $9 million per year will continue until the earlier of 1) both the Police and Fire Plan and the
State Patrol Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of
assets basis) or 2) July 1, 2048. The contribution was previously due to expire after attaining a 90.0 percent funded
status for one year.
The discount rate used to measure the total pension liability in 2024 was 7.0 percent. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members and employers will be made at rates set
in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the General Employees and Police and
Fire Plans were projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated
using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate one percentage point lower or one percentage point
higher than the current discount rate:
89
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 11: Defined Benefit Pension Plans - Fire Relief Association
A. Plan Description
All members of the City of Chanhassen Fire Department (the Department) are covered by a defined benefit plan
administered by the City of Chanhassen Fire Department Relief Association (the Association). As of December 31, 2023,
the plan covered 32 active firefighters and 4 vested terminated firefighters whose pension benefits are deferred. The plan
is a single employer retirement plan and is established and administered in accordance with Minnesota Statute, Chapter
69.
The Association maintains a separate Special fund to accumulate assets to fund the retirement benefits earned by the
Department’s membership. Funding for the Association is derived from an insurance premium tax in accordance with the
Volunteer Firefighter’s Relief Association Financing Guidelines Act of 1971 (chapter 261 as amended by chapter 509 of
Minnesota statutes 1980). Funds are also derived from investment income.
B. Benefits Provided
Twenty Year Service Pension
Prior to April 1997, each member who is at least 50 years of age, has retired from the Fire Department, has served at least
twenty years of active service with such department before retirement, and has been a member of the Relief Association
in good standing at least ten years prior to such retirement shall be entitled to receive either a monthly lifetime service
pension or a defined benefit lump sum pension. After April 1997, each member shall be entitled to receive a defined
benefit lump sum pension.
Monthly service pensions shall be $410 per month. Defined benefit service pensions per year of service shall be $7,500.
The maximum service pension shall not exceed the maximum service pension amount permitted under the flexible
pension maximums pursuant to Minnesota Statute Section 424A.02, Subdivision 3. Members who choose the lump sum
receive no additional interest accrual.
Ten Year Service but Less than Twenty Year Service
Each member who is at least 50 years of age; who has retired from the Fire Department; who has served at least five
years of active service with such department before retirement but has not served at least 20 years of active service; and,
who has been a member of the Relief Association in good standing at least ten years prior to such retirement, shall be
entitled to either a pro-rated monthly service pension or a pro-rated lump sum service pension based on the percentages
in the following table:
More Than but Less Than
5 years 6 years 40%
6 7 44
7 8 48
8 9 52
9 10 56
10 11 60
11 12 64
12 13 68
13 14 72
14 15 76
15 16 80
16 17 84
17 18 88
18 19 92
19 20 96
20 100
90
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued)
The payment amount will be calculated by using the amount payable per year of service in effect at the time of such early
retirement, multiplied by the number of accumulated years of service, multiplied by the appropriate percentage as defined
above.
During the time a member is on early-vested pension, he or she will not be eligible for disability benefits.
Survivors Benefit
Prior to April 1997, if any active vested or deferred member dies leaving an eligible surviving spouse, they shall receive a
monthly pension for a guaranteed fifteen year period. After April 1997, an eligible surviving spouse shall receive a lump
sum payment calculated in accordance with the by-laws. If there is no surviving spouse, then the deceased member’s
designated beneficiary or their estate would receive the payment.
A surviving spouse of a member receiving a monthly pension shall receive 50% of the member’s monthly benefit, based
on the date of death.
Permanent Disability
If any member of the Relief Association contracts sickness or injury, which incapacitates the member from attending to
their business, from causes outside or within their line of duty, and a physician’s report shows that the member is unable
to perform their duties, then they are entitled to their full accrued lump sum benefit, payable immediately.
Temporary Disability
Any member of the Relief Association who becomes temporarily incapacitated from attending to their business due to
illness of injury, sustained in the performance of such business, and is unable to work for a period of one week or longer,
shall be paid a benefit of $5 per day for a period of no longer than 120 days in any one fiscal year, providing the member is
under the care of a physician or doctor during this period.
Death Benefit
Upon the death of any active or deferred member, the beneficiaries of the deceased member shall be paid a death benefit
in an amount equivalent to the accrued service pension.
C. Contributions
Minnesota statutes, chapters 424 and 424A authorize pension benefits for volunteer fire relief associations. The plan is
funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes
and voluntary City contributions (if applicable). The State of Minnesota contributed $251,656 of fire state aid to the plan
on behalf of the City Fire Department for the year ended December 31, 2023, which was recorded as a revenue. Required
employer contributions are calculated annually based on statutory provisions. The City’s statutorily-required contributions
to the plan for the year ended December 31, 2023 was $0. The City’s contributions were equal to the required
contributions as set by state statute. The City made no voluntary contributions to the plan. The firefighter has no
obligation to contribute to the plan.
91
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued)
D. Pension Costs
At December 31, 2024, the City reported a net pension liability (asset) of $38,847 for the Volunteer Firefighter Fund. The
net pension liability (asset) was measured as of December 31, 2023. The following table presents the changes in net
pension liability (asset) during the year:
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability (Asset)
(a)(b)(a-b)
Beginning Balance January 1, 2023 2,741,119$ 2,080,592$ 660,527$
Changes for the Year
Service cost 127,784 - 127,784
Interest 142,367 - 142,367
Differences between expected and actual experience (520,791) - (520,791)
Contributions - member - 253,656 (253,656)
Net investment income - 220,398 (220,398)
Benefit payments (43,133) (43,133) -
Administrative expense - (25,320) 25,320
Total Net Changes (293,773) 405,601 (699,374)
Ending Balance December 31, 2023 2,447,346$ 2,486,193$ (38,847)$
For the year ended December 31, 2024, the City recognized pension expense of $37,288.
At December 31, 2024, the City reported its deferred outflows of resources and deferred inflows of resources, and its
contributions subsequent to the measurement date, to the plan from the following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Experience 15,270$ 422,185$
Changes in Actuarial Assumptions 11,687 -
Net Difference Between Projected and Actual Earnings on Plan Investments 270,200 151,644
Contributions to Plan Subsequent to the Measurement Date 274,071 -
Total 571,228$ 573,829$
92
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued)
Deferred outflows of resources totaling $274,071 related to pensions resulting from the City’s contributions to the plan
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31, 2025. Other amounts reported as deferred outflows of resources related to the plan will be recognized in
pension expense as follows:
2025 (109,321)$
2026 (82,528)
2027 (62,477)
2028 (22,346)
E. Actuarial Assumptions
The total pension liability at December 31, 2024 was determined using the entry age normal actuarial cost method and the
following actuarial assumptions:
Inflation Rate 3.00%
Investment Rate of Return 5.00%
Discount Rate 5.00%
F. Discount Rate
The discount rate used to measure the total pension liability was 5.0 percent. The projection of cash flows used to
determine the discount rate assumed that contributions to the plan will be made as specified in statute. Based on that
assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make
all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of
return on pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
G. Pension Liability Sensitivity
The following presents the City’s net pension liability (asset) for the plan, calculated using the discount rate disclosed in
the preceding paragraph, as well as what the City’s net pension liability (asset) would be if it were calculated using a
discount rate 1 percent lower or 1 percent higher than the current discount rate:
1 Percent 1 Percent
Decrease (4.0%)Current (5.0%)Increase (6.0%)
Defined Benefit Plan 89,233$ (38,847)$ (156,610)$
93
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 11: Defined Benefit Pension Plans - Fire Relief Association (Continued)
H. Asset Allocation
The long-term expected rate of return on pension plan investments was set based on the plan’s target investment
allocation along with long-term return expectations by asset class. All economic assumptions were based on input from
various published sources and projected future financial data available.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in
the following table:
Asset Class
Stock & Mutual Funds 60.00 %5.20 %
Fixed Income 30.00 0.60
Other 5.00 0.60
Cash 5.00 -
Total 100.00 %
Long-term
Target Expected Real
Allocation Rate of Return
I. Pension Plan Fiduciary Net Position
The Association issues a publicly available financial report. The report may be obtained by writing to the Chanhassen
Firefighters Relief Association, PO Box 97, 7610 Laredo Drive, Chanhassen, MN 55317.
94
Note 12: Postemployment Benefits Other Than Pensions
A. Plan Description
At December 31, 2024, the following employees were covered by the benefit terms:
Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 4
Active Plan Members 84
Total Plan Members 88
B. Funding Policy
C. Actuarial Methods and Assumptions
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
The City operates a single-employer retiree benefit plan (“the Plan”) that provides health, life, and dental insurance to
eligible employees and their families through the City’s health insurance plan. The full cost of the benefits is covered by
the plan. Benefit and eligibility provisions are established through negotiations between the City and various unions
representing City employees and are renegotiated at the end of each agreement. The Plan does not issue a publicly
available report and is not administered through a trust or equivalent arrangement and thus there are no assets
accumulated in a GASB-compliant trust.
The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if
the individual terminates service with the City through service retirement or disability retirement. Employees who satisfy
the rule of 80 or attain age 55 and have completed 10 years of service at termination can immediately commence
medical benefits. Retirees may obtain dependent coverage while the participating retiree is under age 65. Covered
spouses may continue coverage after the retiree’s death. The surviving spouse of an active employee may continue
coverage in the group health insurance plan after the employee’s death.
All health care is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their
premium cost for the City-sponsored health insurance plan in which they participate. The premium is a blended rate
determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended
premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as
those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s
plan becomes secondary.
For the year ended December 31, 2024, the City's average contribution rate was 2.79 percent of covered-employee
payroll. For the fiscal year 2024, the City did not directly contribute to the plan. The General fund is typically used to
liquidate the governmental portion of the net OPEB obligation.
The City’s total OPEB liability of $210,955 was measured as of December 31, 2024, and the OPEB liability was
determined by an actuarial valuation as of January 1, 2025. Roll forward procedures were used to roll forward the total
OPEB liability to the measurement date.
95
Note 12: Postemployment Benefits Other Than Pensions (Continued)
Discount Rate 4.28%
Expected Long-Term Investment Return N/A
20-Year Municipal Bond Yield 4.00%
Inflation Rate 3.00%
Salary Increases 7.5% in 2024, trending down 0.5% every year after
to an ultimate rate of 4.5%
D. Changes in the Total OPEB Liability
Total OPEB
Liability
Balances at December 31, 2023 255,651$
Changes for the Year
Service Costs 21,713
Interest Costs 10,537
Assumption Changes (3,197)
Differences between expected and actual experience (45,583)
Benefit Payment (28,166)
Net Changes (44,696)
Balances at December 31, 2024 210,955$
Since the prior measurement date, the following assumptions changed:
Since the prior measurement date, the following plan provisions changed:
Since the prior measurement date, the following benefit terms changed:
The total OPEB liability in the January 1, 2025 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement, unless otherwise specified:
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
The actuarial assumptions used in the valuation were based on input from a variety of published sources of historical
and projected future financial data. Each assumption was reviewed for reasonableness with the source information as
well as for consistency with the other economic assumptions.
• None
Mortality assumptions are set to reflect general population trends based upon Pub-2010 Mortality tables and the most
recent generational projected scale MP-2021.
• None
Assets were projected using expected benefit payments and expected asset returns. Expected benefit payments by year
were discounted using the expected asset return assumption for years in which the assets were sufficient to pay all
benefit payments. Any remaining benefit payments after the trust fund is exhausted are discounted at the 20-year
municipal bond rate. The equivalent single rate is the discount rate.
• The discount rate changed from 4.00% to 4.28%.
• Health care cost trend rate changed from 7.50% decreasing to 4.50% to 8.00% decreasing to 4.50%.
96
Note 12: Postemployment Benefits Other Than Pensions (Continued)
E. Sensitivity of the Net OPEB Liability
1 Percent Discount Rate 1 Percent
Decrease 3.28%Current 4.28%Increase 5.28%
222,671$ 210,955$ 200,060$
Healthcare Cost
1 Percent Decrease Trend Rates 1 Percent Increase
193,755$ 210,955$ 230,911$
F. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences Between Expected and Actual Economic Experience 53,427$ 81,776$
Changes in Actuarial Assumptions 23,655 15,498
Total 77,082$ 97,274$
(8,002)$
(8,006)
(7,186)
579
377
Thereafter 2,046
Notes to the Financial Statements
December 31, 2024
2028
6.50% Decreasing
to 3.50%
7.50% Decreasing
to 4.50%
8.50% Decreasing
to 5.50%
2029
2025
2027
2026
Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in pension
expense as follows:
The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were
calculated using a discount rate one percentage point lower or one percentage point higher than the current discount
rate:
For the year ended December 31, 2024, the City Recognized OPEB expense of $16,530. At December 31, 2024, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
The following presents the City’s net OPEB liability, as well as what the City’s net OPEB liability would be if it were
calculated using a healthcare cost trend rate one percentage point lower or one percentage point higher than the current
healthcare cost trend rate:
City of Chanhassen, Minnesota
97
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 13: Other Information
A. Legal Debt Margin
In accordance with Minnesota statutes, the City may not incur or be subject to net debt in excess of three percent of the
market value of taxable property within the City. Net debt is payable solely from ad valorem taxes and therefore, excludes
debt financed partially or entirely by special assessments, enterprise fund revenues, or tax increments.
B. 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 for which the City carries insurance. The City obtains insurance
through participation in the League of Minnesota Cities Insurance Trust (LMCIT), which is a risk sharing pool with
approximately 800 other governmental units. The City pays an annual premium to LMCIT for its workers compensation and
property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above
a prescribed dollar amount for each insurance event. Settled claims have not exceeded the City’s coverage in any of the past
three fiscal years.
Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated.
Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The City’s management is
not aware of any incurred but not reported claims.
C. Tax Abatements
The City occasionally provides tax abatements pursuant to Minnesota Statutes Sections 469.174 to 469.1794 (Tax
Increment Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage
private development, redevelopment, renovation and renewal, growth in low-to-moderate-income housing, and economic
development within the City. TIF captures the increase in tax capacity and property taxes from development or
redevelopment to provide funding for the related project.
The City has two tax increment districts, which have outstanding pay-as-you-go revenue notes. The notes are not a
general obligation of the City and is payable solely from available tax increments. Accordingly, the notes are not
reflected in the financial statements of the City. Details of the pay-as-you-go revenue notes are as follows:
Tax Increment Revenue Note (Frontier Redevelopment) - issued in 2020 in the principal sum of $1,300,000 with an interest
rate of 5.0% per annum. Principal and interest payments shall be paid commencing August 1, 2020, and each February 1
and August 1 thereafter to and including February 1, 2045. Payments are payable solely from tax increments, which shall
mean 95% of the tax increments derived from the tax increment property and received by the City. The payment
reimburses the developer for street, utilities, right-of-way, land acquisition, and other public improvements. The City shall
have no obligation to pay unpaid balance of principal or accrued interest that may remain after the final payment on
February 1, 2045. Current year abatement (TIF note payments) amount to $276,445. At December 31, 2024, the principal
amount outstanding on the note was $237,646.
Tax Increment Revenue Note (Lakes at Chanhassen LLC) - issued in 2023 in the principal sum of $3,065,000 with no
interest. Principal and interest payments shall be paid commencing August 1, 2023, and each February 1 and August 1
thereafter to and including February 1, 2042. Payments are payable solely from tax increments, which shall mean 90% of
the tax increments derived from the tax increment property and received by the City. The payment reimburses the
developer for the construction of affordable housing. The City shall have no obligation to pay unpaid balance of principal
or accrued interest that may remain after the final payment on February 1, 2042. Current year abatement (TIF note
payments) amount to $138,227. At December 31, 2024, the principal amount outstanding on the note was $2,902,647.
98
City of Chanhassen, Minnesota
Notes to the Financial Statements
December 31, 2024
Note 14: Adjustments to Beginning Balances and Changes in Accounting Principle
Change within Major and Nonmajor Fund Reporting
During fiscal year 2024, the Grant fund was determined to be nonmajor and the Civic Campus fund determined to be
major. The effects of the changes within the financial reporting entity are shown in the applicable financial statements.
Change in Accounting Principle
During fiscal year 2024, the City adopted the provisions of Governmental Accounting Standard Board (GASB) Statement
No. 100, Accounting Changes and Error Corrections, and Statement No. 101, Compensated Absences, for the year ended
December 31, 2024. Adoption of the provisions of these statements results in significant change to the classifications of
the components of the financial statements. There were no adjustments or restatements of beginning balances needed
for the adoption of these statements.
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BLANK INTENTIONALLY
100
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHANHASSEN
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
101
Schedule of Employer’s Share of PERA Net Pension Liability - General Employees Plan
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
6/30/2024 0.0783 %2,896,284$ 74,892$ 2,971,176$ 6,630,559$ 43.7 %86.7 %
6/30/2023 0.0819 4,579,756 95,109 4,674,865 6,511,778 70.3 83.1
6/30/2022 0.0830 6,573,627 116,850 6,690,477 6,058,627 108.5 76.7
6/30/2021 0.0768 3,279,704 59,983 3,339,687 5,654,500 58.0 87.0
6/30/2020 0.0741 4,442,634 83,038 4,525,672 5,332,860 83.3 79.0
6/30/2019 0.0727 4,019,420 74,330 4,093,750 5,158,453 77.9 80.2
6/30/2018 0.0760 4,216,168 77,700 4,293,868 5,036,733 83.7 79.5
6/30/2017 0.0751 4,794,334 32,757 4,827,091 4,869,567 98.5 75.9
6/30/2016 0.0759 6,162,704 40,405 6,203,109 4,703,280 131.0 68.9
6/30/2015 0.0791 4,099,373 - 4,099,373 2,312,540 177.3 78.2
Schedule of Employer’s PERA Contributions - General Employees Fund
Contributions in
Relation to the Contributions as
Statutorily Statutorily Contribution City's a Percentage of
Required Required Deficiency Covered Covered
Year Contribution Contribution (Excess)Payroll Payroll
Ending (a)(b)(a-b)(c)(b/c)
12/31/2024 513,282$ 513,282$ -$ 6,843,766$ 7.50 %
12/31/2023 490,256 490,256 - 6,536,751 7.50
12/31/2022 477,007 477,007 - 6,360,093 7.50
12/31/2021 438,328 438,328 - 5,844,373 7.50
12/31/2020 409,847 409,847 - 5,464,627 7.50
12/31/2019 390,082 390,082 - 5,201,093 7.50
12/31/2018 383,686 383,686 - 5,115,813 7.50
12/31/2017 371,824 371,824 - 4,957,653 7.50
12/31/2016 358,611 358,611 - 4,781,480 7.50
12/31/2015 346,881 346,881 - 4,625,080 7.50
Proportionate
City of Chanhassen, Minnesota
Required Supplementary Information
For the Year Ended December 31, 2024
City's
Share of the
Net Pension
Liability as a Plan Fiduciary
City's Percentage of Net Position
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability (a/c)Pension Liability
102
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - General Employee Retirement Plan
Changes in Actuarial Assumptions
2024 - The following changes in assumptions are effective with the July 1, 2024 valuation, as recommended in the most recent experience
study (dated June 29, 2023): Rates of merit and seniority were adjusted, resulting in slightly higher rates. Assumed rates of retirement were
adjusted as follows: increase the rate of assumed unreduced retirements, slight adjustments to Rule of 90 retirement rates, and slight
adjustments to early retirement rates for Tier 1 and Tier 2 members. Minor increase in assumed withdrawals for males and females. Lower
rates of disability. Continued use of Pub-2010 general mortality table with slight rate adjustments as recommended in the most recent
experience study. Minor changes to form of payment assumptions for male and female retirees. Minor changes to assumptions made with
respect to missing participant data.
2023 - The investment return and single discount rates were changed from 6.5 percent to 7.0 percent.
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021.
2021 - The investment return and single discount rates were changed from 7.50 percent to 6.50 percent, for financial reporting purposes. The
mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020.
2020 - The price inflation assumption was decreased from 2.50% to 2.25%. The payroll growth assumption was decreased from 3.25% to 3.00%.
Assumed salary increase rates were changed as recommended in the June 30, 2019 experience study. The net effect is assumed rates that
average 0.25% less than previous rates. Assumed rates of retirement were changed as recommended in the June 30, 2019 experience study.
The changes result in more unreduced (normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of termination
were changed as recommended in the June 30, 2019 experience study. The new rates are based on service and are generally lower than the
previous rates for years 2-5 and slightly higher thereafter. Assumed rates of disability were changed as recommended in the June 30, 2019
experience study. The change results in fewer predicted disability retirements for males and females. The base mortality table for healthy
annuitants and employees was changed from the RP-2014 table to the Pub-2010 General Mortality table, with adjustments. The base mortality
table for disabled annuitants was changed from the RP-2014 disabled annuitant mortality table to the PUB-2010 General/Teacher disabled
annuitant mortality table, with adjustments. The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019. The
assumed spouse age difference was changed from two years older for females to one year older. The assumed number of married male new
retirees electing the 100% Joint & Survivor option changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married new retirees electing the Life annuity option was
adjusted accordingly.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00 percent
per year through 2044 and 2.50 percent per year thereafter to 1.25 percent per year.
2017 - The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested
deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and
3.0 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year
for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2035 and 2.5 percent per year
thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single
discount rate was changed from 7.9 percent to 7.5 percent. Other assumptions were changed pursuant to the experience study dated June 30,
2015. The assumed future salary increases, payroll growth and inflation were decreased by 0.25 percent to 3.25 percent for payroll growth and
2.50 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year
thereafter to 1.0 percent per year through 2035 and 2.5 percent per year thereafter.
103
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - General Employee Retirement Plan (Continued)
Changes in Plan Provisions
2024 - The workers’ compensation offset for disability benefits was eliminated. The actuarial equivalent factors updated to reflect the changes
in assumptions.
2023 - An additional one-time direct state aid contribution of $170.1 million will be contributed to the Plan on October 1, 2023. The vesting
period of those hired after June 30, 2010, was changed from five years of allowable service to three years of allowable service. The benefit
increase delay for early retirements on or after January 1, 2024 was eliminated. A one-time non-compounding benefit increase of 2.5 percent
minus the actual 2024 adjustment will be payable in a lump sum for calendar year 2024 by March 31, 2024.
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020 through December 31, 2023 and 0.0%
after. Augmentation was eliminated for privatizations occurring after June 30, 2020.
2019 - The employer supplemental contribution was changed prospectively, decreasing from $31.0 million to $21.0 million per year. The state’s
special funding contribution was changed prospectively, requiring $16.0 million due per year through 2031.
2018 - The augmentation adjustment in early retirement factors is eliminated over a five-year period starting July 1, 2019, resulting in actuarial
equivalence after June 30, 2024. Interest credited on member contributions decreased from 4.0 percent to 3.0 percent, beginning July 1, 2018.
Deferred augmentation was changed to 0.0 percent, effective January 1, 2019. Augmentation that has already accrued for deferred members
will still apply. Contribution stabilizer provisions were repealed. Postretirement benefit increases were changed from 1.0 percent per year with a
provision to increase to 2.5 percent upon attainment of 90.0 percent funding ratio to 50.0 percent of the Social Security Cost of Living
Adjustment, not less than 1.0 percent and not more than 1.5 percent, beginning January 1, 2019. For retirements on or after January 1, 2024, the
first benefit increase is delayed until the retiree reaches normal retirement age; does not apply to Rule of 90 retirees, disability benefit recipients,
or survivors. Actuarial equivalent factors were updated to reflect revised mortality and interest assumptions.
2017 - The State’s contribution for the Minneapolis Employees Retirement Fund equals $16,000,000 in 2017 and 2018, and $6,000,000
thereafter. The Employer Supplemental Contribution for the Minneapolis Employees Retirement Fund changed from $21,000,000 to $31,000,000
in calendar years 2019 to 2031. The state’s contribution changed from $16,000,000 to $6,000,000 in calendar years 2019 to 2031.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - On January 1, 2015, the Minneapolis Employees Retirement Fund was merged into the General Employees Fund, which increased the
total pension liability by $1.1 billion and increased the fiduciary plan net position by $892 million. Upon consolidation, state and employer
contributions were revised.
104
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Schedule of Employer’s Share of PERA Net Pension Liability - Police and Fire Plan
State's
Proportionate
City's Share of
Proportionate the Net Pension
Share of Liability City's
Fiscal the Net Pension Associated with Covered
Year Liability the City Total Payroll
Ending (a)(b)(a+b)(c)
6/30/2024 0.0612 %805,121$ 30,691$ 835,812$ 847,428$ 95.0 %87.0 %
6/30/2023 0.0506 873,796 129,787 1,003,583 663,845 131.6 86.5
6/30/2022 0.0319 1,388,162 358,279 1,746,441 374,492 370.7 70.5
6/30/2021 0.0220 169,817 59,909 229,726 272,672 62.3 93.7
6/30/2020 0.0200 263,621 59,909 323,530 225,881 116.7 87.2
6/30/2019 0.0205 218,243 - 218,243 214,818 101.6 89.3
6/30/2018 0.0193 205,718 - 205,718 204,083 100.8 88.8
6/30/2017 0.0190 256,523 - 256,523 195,685 131.1 85.4
6/30/2016 0.0190 762,503 - 762,503 186,534 408.8 63.9
6/30/2015 0.0200 227,247 - 227,247 91,503 248.3 86.6
Schedule of Employer’s PERA Contributions - Police and Fire Fund
Contributions in
Relation to the Contributions as
Statutorily Statutorily Contribution City's a Percentage of
Required Required Deficiency Covered Covered
Year Contribution Contribution (Excess)Payroll Payroll
Ending (a)(b)(a-b)(c)(b/c)
12/31/2024 161,628$ 161,628$ -$ 913,153$ 17.70 %
12/31/2023 135,550 135,550 - 765,817 17.70
12/31/2022 86,742 86,742 - 490,068 17.70
12/31/2021 55,996 55,996 - 316,362 17.70
12/31/2020 40,530 40,530 - 228,983 17.70
12/31/2019 37,761 37,761 - 222,779 16.95
12/31/2018 33,511 33,511 - 206,858 16.20
12/31/2017 32,612 32,612 - 201,309 16.20
12/31/2016 30,790 30,790 - 190,062 16.20
12/31/2015 29,647 29,647 - 183,006 16.20
Share of the
City's
Proportionate
Net Pension
Liability as a Plan Fiduciary
City's Percentage of Net Position
Proportion of Covered as a Percentage
the Net Pension Payroll of the Total
Liability (a/c)Pension Liability
105
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - Police and Fire Plan
Changes in Actuarial Assumptions
2024 - There were no changes in actuarial assumptions since the previous valuation.
2023 - The investment return assumption was changed from 6.5 percent to 7.0 percent. The single discount rate changed from 5.4 percent to
7.0 percent.
2022 - The mortality improvement scale was changed from Scale MP-2020 to Scale MP-2021. The single discount rate changed from 6.50
percent to 5.40 percent.
2021 - The investment return and single discount rates were changed from 7.5 percent to 6.5 percent, for financial reporting purposes. The
inflation assumption was changed from 2.5 percent to 2.25 percent. The payroll growth assumption was changed from 3.25 percent to 3.0
percent. The base mortality table for healthy annuitants and employees was changed from the RP-2014 table to the Pub-2010 Public Safety
Mortality table. The mortality improvement scale was changed from MP-2019 to MN-2020. The base mortality table for disabled annuitants was
changed from the RP-2014 healthy annuitant mortality table (with future mortality improvement according to Scale MP-2019) to the Pub-2010
Public Safety disabled annuitant mortality table (with future mortality improvement according to Scale MP-2020). Assumed rates of salary
increase were modified as recommended in the July 14, 2020 experience study. The overall impact is a decrease in gross salary increase rates.
Assumed rates of retirement were changed as recommended in the July 14, 2020 experience study. The changes result in slightly more
unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to
service-based rates. The changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and
decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members
was changed from 60.0 percent to 70.0 percent. Minor changes to form of payment assumptions were applied.
2020 - The mortality projection scale was changed from MP-2018 to MP-2019.
2019 - The mortality projection scale was changed from MP-2017 to MP-2018.
2018 - The mortality projection scale was changed from MP-2016 to MP-2017.
2017 - Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that
average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined
Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested
members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the
RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent
for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from
separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four
years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and
survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent
per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent to 7.5 percent.
2016 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2037 and 2.5 percent per year
thereafter to 1.0 percent per year for all future years. The assumed investment return was changed from 7.9 percent to 7.5 percent. The single
discount rate was changed from 7.9 percent to 5.6 percent. The assumed future salary increases, payroll growth and inflation were decreased
by 0.25 percent to 3.25 percent for payroll growth and 2.5 percent for inflation.
2015 - The assumed post-retirement benefit increase rate was changed from 1.0 percent per year through 2030 and 2.5 percent per year
thereafter to 1.0 percent per year through 2037 and 2.5 percent per year thereafter.
106
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information - Police and Fire Plan (Continued)
Changes in Plan Provisions
2024 - The State contribution of $9.0 million per year will continue until the earlier of 1) both the Police and Fire Plan and the State Patrol
Retirement Fund attain 90.0 percent funded status for three consecutive years (on an actuarial value of assets basis) or 2) July 1, 2048. The
contribution was previously due to expire after attaining a 90.0 percent funded status for one year. The additional $9.0 million contribution will
continue until the Police and Fire Plan is fully funded for a minimum of three consecutive years on an actuarial value of assets basis, or July 1,
2048, whichever is earlier. This contribution was previously due to expire upon attainment of fully funded status on an actuarial value of assets
basis for one year (or July 1, 2048 if earlier).
2023 - An additional one-time direct state aid contribution of $19.4 million will be contributed to the Plan on October 1, 2023. The vesting
requirement for new hires after June 30, 2014 was changed from a graded 20-year vesting schedule to a graded 10-year vesting schedule, with
50 percent vesting after five years increasing incrementally to 100 percent after 10 years. A one-time non-compounding benefit increase of 3.0
percent will be payable in a lump sum for calendar year 2024 by March 31, 2024. Psychological treatment is required effective July 1, 2023 prior
to approval for a duty disability benefit for a psychological condition relating to the member’s occupation. The total and permanent duty
disability was increased, effective July 1, 2023.
2022 - There were no changes in plan provisions since the previous valuation.
2021 - There were no changes in plan provisions since the previous valuation.
2020 - There were no changes in plan provisions since the previous valuation.
2019 - There were no changes in plan provisions since the previous valuation.
2018 - As set by statute, the assumed post-retirement benefit increase was changed from 1.0 percent per year through 2064 and 2.5 percent
per year, thereafter, to 1.0 percent for all years, with no trigger. An end date of July 1, 2048 was added to the existing $9 million state
contribution. New annual state aid will equal $4.5 million in fiscal years 2019 and 2020, and $9 million thereafter until the plan reaches 100
percent funding, or July 1, 2048, if earlier. Member contributions were changed from 10.8 percent to 11.3 percent of pay, effective January 1,
2019 and 11.8 percent of pay, effective January 1, 2020. Employer contributions were changed from 16.2 percent to 16.95 percent of pay,
effective January 1, 2019 and 17.7 percent of pay, effective January 1, 2020. Interest credited on member contributions decreased from 4.0
percent to 3.0 percent, beginning July 1, 2018. Deferred augmentation was changed to 0.0 percent, effective January 1, 2019. Augmentation
that has already accrued for deferred members will still apply. Actuarial equivalent factors were updated to reflect revised mortality and interest
assumptions.
2017- Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that
average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The combined
service annuity (CSA) load was 30.0 percent for vested and non-vested, deferred members. The CSA has been changed to 33.0 percent for
vested members and 2.0 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully
generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality
improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-
2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for
the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65.0 percent to 60.0 percent. Assumed age difference was changed
from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four
years older) to the assumption that males are two years older than females. The assumed percentage of female members electing joint and
survivor annuities was increased. The assumed postretirement benefit increase rate was changed from 1.0 percent for all years to 1.0 percent
per year through 2064 and 2.5 percent thereafter. The single discount rate was changed from 5.6 percent per annum to 7.5 percent per annum.
2016 - There were no changes in plan provisions since the previous valuation.
2015 - The post-retirement benefit increase to be paid after attainment of the 90 percent funding threshold was changed, from inflation up to
2.5 percent, to a fixed rate of 2.5 percent.
107
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Schedule of Changes in the Fire Relief Association’s Net Pension Liability (Asset) and Related Ratios
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
(Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief (Fire Relief
Report Report Report Report Report Report Report Report Report Report
Date 2023)Date 2022)Date 2021)Date 2020)Date 2020)Date 2019)Date 2018)Date 2017)Date 2016)Date 2015)
Total Pension Liability
Service cost 127,784$ 127,784$ 154,968$ 150,695$ 150,695$ 143,922$ 143,922$ 88,924$ 88,924$ 86,369$
Interest 142,367 143,544 161,407 156,622 156,622 154,784 149,836 127,729 128,235 118,909
Changes of benefit terms - - - - - - - 212,120 - 279,202
Differences between expected and actual experience (520,791) - (126,365) 76,350 76,350 (79,049) - 5,145 - (5,328)
Changes of assumptions - - 233 58,144 58,144 (902) (1,074) 231,636 (203) -
Benefit payments, including refunds
of employee contributions (43,133) (546,601) (494,030) (206,737) (206,737) (170,835) (216,595) (340,243) (113,883) (470,743)
Net Change in Total Pension Liability (293,773) (275,273) (303,787) 235,074 235,074 47,920 76,089 325,311 103,073 8,409
Total Pension Liability - January 1 2,741,119 3,016,392 3,320,179 3,085,105 3,085,105 3,037,185 2,961,096 2,635,785 2,532,712 2,524,303
Total Pension Liability - December 31 (A)2,447,346$ 2,741,119$ 3,016,392$ 3,320,179$ 3,320,179$ 3,085,105$ 3,037,185$ 2,961,096$ 2,635,785$ 2,532,712$
Plan Fiduciary Net Position
Contributions - employer -$ 42,580$ -$ 31,957$ 31,957$ 47,399$ 54,749$ -$ -$ 37,571$
Contributions - state 253,656 230,795 211,227 203,495 203,495 190,045 184,695 181,554 177,831 177,784
Net investment income 220,398 (323,036) 231,675 237,593 237,593 328,474 (130,928) 306,593 158,581 (105,958)
Benefit payments, including refunds
of employee contributions (43,133) (546,601) (494,030) (206,737) (206,737) (170,835) (216,595) (340,243) (113,883) (470,743)
Administrative expense (25,320) (11,350) (19,800) (16,000) (16,000) (16,386) (17,350) (14,875) (16,972) (7,225)
Other - - (20,943) - - - - 29,900 500 -
Net Change in Plan Fiduciary Net Position 405,601 (607,612) (91,871) 250,308 250,308 378,697 (125,429) 162,929 206,057 (368,571)
Plan Fiduciary Net Position - January 1 2,080,592 2,688,204 2,780,075 2,529,767 2,529,767 2,151,070 2,276,499 2,113,570 1,907,513 2,276,084
Plan Fiduciary Net Position - December 31 (B)2,486,193$ 2,080,592$ 2,688,204$ 2,780,075$ 2,780,075$ 2,529,767$ 2,151,070$ 2,276,499$ 2,113,570$ 1,907,513$
Fire Relief's Net Pension Liability (Asset) -
December 31 (A-B)(38,847)$ 660,527$ 328,188$ 540,104$ 540,104$ 555,338$ 886,115$ 684,597$ 522,215$ 625,199$
Plan Fiduciary Net Position As a Percentage
Of the Total Pension Liability (B/A)101.59%75.90%89.12%83.73%83.73%82.00%70.82%76.88%80.19%75.32%
Covered-Employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Fire Relief's Net Pension Liability (Asset)
as a Percentage of Covered-Employee Payroll N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Beginning in 2021, the City's net pension liability was measured using a one-year lookback option.
108
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Notes to the Required Supplementary Information – Fire Relief Association
Changes in Actuarial Assumptions
2024 – No changes since prior report.
2023 - No changes since prior report.
2022 - The mortality table used to measure funding liability has been changed from SOA Public Safety-2010 Mortality with
the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table Projected Generationally from 2010 with the
MP-2020 Mortality Improvement Scale.
2020 - The mortality assumption was updated from the PubS-2010 Mortality Table Projected Generationally from 2010
with the MP-2019 Mortality Improvement Scale to the PubS-2010 Mortality Table Projected Generationally from 2010 with
the MP-2020 Mortality Improvement Scale.
2019 - The mortality table used to measure funding liability has been changed from RP -2014 Sex Distinct Blue Collar
Mortality with generational improvements beginning in 2006 (based on assumptions developed from the 2017 Social
Security Trustees Report) to PubS-2010 Mortality with generational improvements projected beginning in 2010 based on
SOA Scale MP-2019.
2018 - Mortality assumptions were determined using the RP-2014 Blue Collar Mortality with fully generational
improvements from 2006 based on assumptions from the Social Security Administration’s 2018 trustees report. The
mortality improvement scale used to measure liability has been changed from an improvement scale based on
assumptions developed from the 2017 Social Security Trustees Report to an improvement scaled based on assumptions
developed from the 2018 Social Security trustees Report. The base table (RP-2014 Blue Collar) and year in which
improvements began (2006) remained unchanged. This results in a decrease in liability and service cost.
2017 - The mortality improvement scale has been changed from an improvement scale based on assumptions developed
from the 2016 Social Security Trustees Report to an improvement scale based on assumptions developed from the 2017
Social Security Trustees Report. Disability rates have changed from 0.03% at age 20, grading to 0.33% at age 50 to Class 1
1985 Disability Rates. The lump sum benefit accrual amount has been projected to increase by 9.27% every three years
(3% compounded each year).
2016 - As of December 31, 2016, the mortality assumption was changed to the RP-2014 Blue Collar Mortality with fully
generational improvements from 2006 based on assumptions from the Social Security Administration’s 2016 trustees
report.
109
City of Chanhassen, Minnesota
Required Supplementary Information (Continued)
For the Year Ended December 31, 2024
Schedule of Employer’s Fire Relief Association Contributions
Actuarial Contribution
Determined Employer State of MN Deficiency
Year Contribution Contributions Contributions (Excess)
Ending (a)(b)(c)(a-b-c)
12/31/24 190,629$ -$ 190,629$ -
12/31/23 190,629 42,580 190,629 (42,580)
12/31/22 233,452 - 211,227 22,225
12/31/21 233,452 31,957 203,495 (2,000)
12/31/20 233,452 31,957 203,495 (2,000)
12/31/19 236,444 47,399 190,045 (1,000)
12/31/18 236,444 54,749 184,695 (3,000)
12/31/17 171,760 - 181,554 (9,794)
12/31/16 171,760 - 177,831 (6,071)
12/31/15 142,501 37,571 177,784 (72,854)
Beginning in 2021, the City's net pension liability was measured using a one-year lookback option.
Schedule of Changes in the City’s Total OPEB Liability and Related Ratios
Total OPEB Liability
Service cost 21,713$ 14,008$ 18,755$ 15,307$ 13,504$ 13,547$ 14,388$
Interest 10,537 7,514 4,381 3,785 5,463 8,738 7,032
Differences between expected and actual experience (45,583) 68,691 (9,225) (6,405) (12,888) (82,370) -
Changes in assumptions (3,197) 13,672 (17,614) 8,015 9,168 16,736 (7,402)
Benefit payments (28,166) (16,946) (7,075) (8,835) (3,343) - (9,869)
Net Change in Total OPEB Liability (44,696) 86,939 (10,778) 11,867 11,904 (43,349) 4,149
Total OPEB Liability - Beginning 255,651 168,712 179,490 167,623 155,719 199,068 194,919
Total OPEB Liability - Ending 210,955$ 255,651$ 168,712$ 179,490$ 167,623$ 155,719$ 199,068$
Covered-Employee Payroll 7,550,593$ 7,499,619$ 6,720,515$ 6,422,681$ 5,270,695$ 5,270,695$ 5,151,178$
City's total OPEB liability as a percentage of
covered-employee payroll 2.8 %3.4 %2.5 %2.8 %3.2 %3.0 %3.9 %
2018201920242023202220212020
Note: Schedule is intended to show a 10-year trend. Additional years will be reported as they become available.
No assets are accumulated in a trust that meet the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits.
110
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
CITY OF CHANHASSEN
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
111
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112
City of Chanhassen, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual (Continued on the Following Pages)
For the Year Ended December 31, 2024
(With Comparative Actual Amounts for the Year Ended December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes
General property 11,851,000$ 11,851,000$ 11,724,499$ (126,501)$ 10,689,452$
Franchise fees
Cable franchise fee 145,000 145,000 140,269 (4,731) 143,187
Licenses and permits
General government 2,500 2,500 2,200 (300) 2,250
Public safety 1,504,500 1,504,500 1,857,019 352,519 1,464,355
Public works 59,500 59,500 343,629 284,129 43,204
Community development 16,000 16,000 18,752 2,752 18,715
Total licenses and permits 1,582,500 1,582,500 2,221,600 639,100 1,528,524
Intergovernmental
State
Local performance aid - - 3,613 3,613 3,624
Fire aid 240,000 240,000 296,831 56,831 274,005
Police aid 160,000 160,000 190,588 30,588 165,460
Other state aid - - 2,433 2,433 -
County
Other county grants - - - - 7,500
Local
Miscellaneous 66,000 66,000 79,633 13,633 70,997
Total intergovernmental 466,000 466,000 573,098 107,098 521,586
Charges for services
General government 381,500 381,500 410,120 28,620 405,564
Public safety 3,000 3,000 5,150 2,150 4,650
Public works 99,000 99,000 107,666 8,666 23,220
Culture and recreation 529,850 529,850 553,011 23,161 567,159
Community development 22,000 22,000 19,867 (2,133) 25,528
Total charges for services 1,035,350 1,035,350 1,095,814 60,464 1,026,121
Fines and forfeitures 70,000 70,000 75,887 5,887 76,295
Investment earnings 200,000 200,000 397,474 197,474 467,266
Miscellaneous revenues
Contributions and donations 21,500 21,500 35,474 13,974 24,032
Refunds and reimbursements 37,000 37,000 75,802 38,802 77,362
Other 5,000 5,000 8,265 3,265 23,561
Total miscellaneous 63,500 63,500 119,541 56,041 124,955
Total revenues 15,413,350 15,413,350 16,348,182 934,832 14,577,386
2024
Budgeted Amounts
113
City of Chanhassen, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual (Continued)
For the Year Ended December 31, 2024
(With Comparative Actual Amounts for the Year Ended December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Expenditures
Current
General government
City council
Personnel services 39,517$ 39,517$ 37,055$ 2,462$ 36,908$
Other services and charges 106,600 106,600 79,578 27,022 96,707
Total city council 146,117 146,117 116,633 29,484 133,615
Administration
Personnel services 517,444 517,444 485,114 32,330 460,932
Supplies 58,000 58,000 61,408 (3,408) 58,246
Other services and charges 141,543 141,543 193,792 (52,249) 153,252
Total administration 716,987 716,987 740,314 (23,327) 672,430
Finance
Personnel services 320,907 320,907 320,439 468 299,998
Supplies 100 100 1,677 (1,577) 240
Other services and charges 61,909 61,909 53,752 8,157 47,070
Total finance 382,916 382,916 375,868 7,048 347,308
Elections
Personnel services 26,000 26,000 32,443 (6,443) -
Supplies 4,000 4,000 1,391 2,609 -
Other services and charges 18,000 18,000 17,755 245 12,089
Total elections 48,000 48,000 51,589 (3,589) 12,089
Contracted central services
Other services and charges 402,000 402,000 403,665 (1,665) 386,210
Information technology
Personnel services 292,843 292,843 293,715 (872) 261,182
Supplies 316,737 316,737 273,794 42,943 292,241
Other services and charges 141,530 141,530 59,200 82,330 142,269
Total information technology 751,110 751,110 626,709 124,401 695,692
City hall
Personnel services 60,252 60,252 55,387 4,865 59,285
Supplies 13,500 13,500 1,423 12,077 5,101
Other services and charges 306,393 306,393 259,362 47,031 293,347
Total city hall 380,145 380,145 316,172 63,973 357,733
Library
Supplies 2,250 2,250 1,177 1,073 73
Other services and charges 146,948 146,948 131,096 15,852 211,563
Total library 149,198 149,198 132,273 16,925 211,636
2024
Budgeted Amounts
114
City of Chanhassen, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual (Continued)
For the Year Ended December 31, 2024
(With Comparative Actual Amounts for the Year Ended December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
2024
Budgeted Amounts
Expenditures (Continued)
Current (continued)
General government (continued)
Economic development
Personnel services 178,162$ 178,162$ 176,628$ 1,534$ 165,739$
Supplies 250 250 - 250 -
Other services and charges 11,970 11,970 8,326 3,644 5,755
Total economic development 190,382 190,382 184,954 5,428 171,494
Communication
Personnel services 299,031 299,031 279,906 19,125 271,792
Supplies 55,200 55,200 47,717 7,483 41,745
Other services and charges 62,020 62,020 36,319 25,701 40,340
Total communication 416,251 416,251 363,942 52,309 353,877
Total general government 3,583,106 3,583,106 3,312,119 270,987 3,342,084
Public Safety
Law enforcement
Supplies 1,500 1,500 1,625 (125) 217
Other services and charges 2,438,901 2,438,901 2,301,664 137,237 2,060,478
Total law enforcement 2,440,401 2,440,401 2,303,289 137,112 2,060,695
Fire department
Personnel services 1,813,071 1,813,071 1,811,670 1,401 1,613,717
Supplies 80,605 80,605 110,331 (29,726) 83,065
Other services and charges 167,440 167,440 145,751 21,689 139,469
Total fire department 2,061,116 2,061,116 2,067,752 (6,636) 1,836,251
Building permits & inspection
Personnel services 874,095 874,095 849,942 24,153 869,316
Supplies 5,400 5,400 13,335 (7,935) 3,816
Other services and charges 59,040 59,040 68,969 (9,929) 50,186
Total building permits & inspection 938,535 938,535 932,246 6,289 923,318
Total public safety 5,440,052 5,440,052 5,303,287 136,765 4,820,264
Public works
Engineering
Personnel services 623,063 623,063 637,436 (14,373) 559,907
Supplies 13,300 13,300 12,297 1,003 22,862
Other services and charges 9,537 9,537 11,936 (2,399) 12,450
Total engineering 645,900 645,900 661,669 (15,769) 595,219
115
City of Chanhassen, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual (Continued)
For the Year Ended December 31, 2024
(With Comparative Actual Amounts for the Year Ended December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
2024
Budgeted Amounts
Expenditures (Continued)
Current (continued)
Public works (continued)
G.I.S.
Personnel services 80,854$ 80,854$ 79,784$ 1,070$ 69,935$
Supplies 2,500 2,500 3,640 (1,140) 2,500
Other services and charges (280) (280) (7,546) 7,266 16,894
Total G.I.S.83,074 83,074 75,878 7,196 89,329
Street maintenance
Personnel services 642,780 642,780 548,926 93,854 538,650
Supplies 203,900 203,900 196,711 7,189 230,858
Other services and charges 329,520 329,520 333,583 (4,063) 38,273
Total street maintenance 1,176,200 1,176,200 1,079,220 96,980 807,781
Street lighting
Supplies 5,000 5,000 23,273 (18,273) 4,263
Other services and charges 532,515 532,515 399,803 132,712 428,467
Total street lighting 537,515 537,515 423,076 114,439 432,730
Fleet maintenance
Personnel services 290,688 290,688 286,028 4,660 280,561
Supplies 186,248 186,248 117,112 69,136 155,256
Other services and charges 16,860 16,860 3,762 13,098 5,980
Total fleet maintenance 493,796 493,796 406,902 86,894 441,797
Public works operations
Personnel services 109,628 109,628 106,005 3,623 102,602
Supplies 2,000 2,000 1,143 857 755
Other services and charges 54,483 54,483 53,329 1,154 50,825
Total public works operations 166,111 166,111 160,477 5,634 154,182
Total public works 3,102,596 3,102,596 2,807,222 295,374 2,521,038
Culture and recreation
Park administration
Personnel services 185,195 185,195 188,094 (2,899) 175,979
Supplies 300 300 - 300 139
Other services and charges 16,876 16,876 6,846 10,030 6,325
Total park administration 202,371 202,371 194,940 7,431 182,443
Recreation center
Personnel services 296,519 296,519 339,864 (43,345) 312,751
Supplies 18,300 18,300 12,213 6,087 17,504
Other services and charges 147,350 147,350 143,864 3,486 147,484
Total recreation center 462,169 462,169 495,941 (33,772) 477,739
Senior center
Personnel services 106,474 106,474 107,879 (1,405) 99,842
Supplies 5,975 5,975 10,548 (4,573) 6,988
Other services and charges 38,720 38,720 39,687 (967) 41,996
Total senior center 151,169 151,169 158,114 (6,945) 148,826
116
City of Chanhassen, Minnesota
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget and Actual (Continued)
For the Year Ended December 31, 2024
(With Comparative Actual Amounts for the Year Ended December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
2024
Budgeted Amounts
Expenditures (Continued)
Current (continued)
Culture and recreation (continued)
Recreation programs
Personnel services 348,531$ 348,531$ 291,204$ 57,327$ 296,922$
Supplies 33,120 33,120 31,797 1,323 30,840
Other services and charges 173,010 173,010 159,322 13,688 160,184
Total recreation programs 554,661 554,661 482,323 72,338 487,946
Lake Ann Park
Personnel services 14,084 14,084 12,829 1,255 12,510
Supplies 20,700 20,700 21,510 (810) 22,728
Other services and charges 58,100 58,100 21,037 37,063 59,886
Total Lake Ann Park 92,884 92,884 55,376 37,508 95,124
Park maintenance
Personnel services 1,061,449 1,061,449 1,068,069 (6,620) 979,416
Supplies 111,000 111,000 120,260 (9,260) 129,545
Other services and charges 284,850 284,850 251,817 33,033 251,452
Total park maintenance 1,457,299 1,457,299 1,440,146 17,153 1,360,413
Total culture and recreation 2,920,553 2,920,553 2,826,840 93,713 2,752,491
Community development
Planning administration
Personnel services 581,568 581,568 471,433 110,135 581,271
Supplies 400 400 551 (151) 192
Other services and charges 25,075 25,075 112,957 (87,882) 70,178
Total planning administration 607,043 607,043 584,941 22,102 651,641
Total community development 607,043 607,043 584,941 22,102 651,641
Total current 15,653,350 15,653,350 14,834,409 818,941 14,087,518
Total expenditures 15,653,350 15,653,350 14,834,409 818,941 14,087,518
Excess (deficiency) of revenues
Over (under) expenditures (240,000) (240,000) 1,513,773 1,753,773 489,868
Other financing sources (uses)
Transfers in 330,000 330,000 1,737,106 1,407,106 180,000
Transfers out - - - - (170,000)
Total other financing sources (uses)330,000 330,000 1,737,106 1,407,106 10,000
Net Change in Fund Balances 90,000 90,000 3,250,879 3,160,879 499,868
Fund Balances, January 1 8,872,099 8,872,099 8,872,099 - 8,372,231
Fund Balances, December 31 8,962,099$ 8,962,099$ 12,122,978$ 3,160,879$ 8,872,099$
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118
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or
committed to expenditures for specified purposes.
DEBT SERVICE FUNDS
The Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and
related costs on general long-term debt.
CAPITAL PROJECT FUNDS
The Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital
facilities (other than those financed by Proprietary Funds).
119
City of Chanhassen, Minnesota
Nonmajor Governmental Funds
Combining Balance Sheet
December 31, 2024
Special Debt Capital
Revenue Service Projects Total
Assets
Cash and investments 1,450,373$ 2,928,971$ 4,218,755$ 8,598,099$
Receivables
Accounts 33,277 - 63,140 96,417
Accrued interest 19,997 12,053 16,782 48,832
Taxes - 3,108 5,800 8,908
Special assessments - 316,443 1,182,271 1,498,714
Due from other governments - -114,410 114,410
Total Assets 1,503,647$ 3,260,575$ 5,601,158$ 10,365,380$
Liabilities
Accounts payable 90,156$ 500,250$ 461,841$ 1,052,247$
Contracts payable - - 165,347 165,347
Due to other governments - - 10,679 10,679
Due to other funds - - 21,000 21,000
Total Liabilities 90,156 500,250 658,867 1,249,273
Deferred Inflows of Resources
Unavailable revenue - special assessments - 316,443 1,182,271 1,498,714
Fund Balances
Restricted for
Communications 43,886 - - 43,886
Public safety 950,174 - - 950,174
Debt service - 1,317,101 - 1,317,101
Capital projects - - 672,134 672,134
Tax increments - - 54,927 54,927
Local affordable housing aid 126,855 - - 126,855
Committed 144,359 - - 144,359
Assigned 148,217 1,126,781 3,053,453 4,328,451
Unassigned - - (20,494) (20,494)
Total Fund Balances 1,413,491 2,443,882 3,760,020 7,617,393
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 1,503,647$ 3,260,575$ 5,601,158$ 10,365,380$
120
City of Chanhassen, Minnesota
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31, 2024
Special Debt Capital
Revenue Service Projects Total
Revenues
Taxes -$ 566,000$ 1,056,000$ 1,622,000$
Tax increments - - 444,581 444,581
Licenses and permits - - 28,333 28,333
Intergovernmental 2,472,081 - 8,976 2,481,057
Franchise fees 49 49
Charges for services 6,100 - - 6,100
Investment earnings 164,393 91,402 118,060 373,855
Miscellaneous
Contributions and donations 67,840 - - 67,840
Refunds and reimbursements 25,000 - 1,963 26,963
Other - - 3,228 3,228
Total Revenues 2,735,463 657,402 1,661,141 5,054,006
Expenditures
Current
General government 215,501 705 - 216,206
Community development - - 425,844 425,844
Capital outlay
General government - - 265,165 265,165
Public safety 72,147 - 111,725 183,872
Public works - - 372,368 372,368
Culture and recreation - - 1,426,215 1,426,215
Community development - - - -
Debt service
Principal - 395,000 290,933 685,933
Interest and other charges - 58,743 82,002 140,745
Total Expenditures 287,648 454,448 2,974,252 3,716,348
Excess (Deficiency) of Revenues
Over (Under) Expenditures 2,447,815 202,954 (1,313,111) 1,337,658
Other Financing Sources (Uses)
Sale of capital assets - - 266,687 266,687
Transfers in - - 938,120 938,120
Issuance of leases - - 255,365 255,365
Issuance of bonds - 477,000 - 477,000
Transfers out (2,675,226) - - (2,675,226)
Total Other Financing Sources (Uses)(2,675,226) 477,000 1,460,172 (738,054)
Net Change in Fund Balances (227,411) 679,954 147,061 599,604
Fund Balances, January 1, as previously reported 447,763 1,763,928 2,637,696 4,849,387
Change to the financial reporting entity
Change from major to nonmajor fund (Fund 212)1,193,139 - - 1,193,139
Change from nonmajor to major fund (Fund 414)- - 975,263 975,263
Fund Balances, January 1, as adjusted 1,640,902 1,763,928 3,612,959 7,017,789
Fund Balances, December 31 1,413,491$ 2,443,882$ 3,760,020$ 7,617,393$
121
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122
NONMAJOR SPECIAL REVENUE FUNDS
Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or
committed to expenditures for specified purposes other than debt service or capital projects.
Charitable Gambling Fund - This fund accounts for the proceeds that the City receives from charitable gambling. The City
collects 10% of the net profits from lawful gambling within City boundaries. Per state statute, the fund is used for
equipment and training for the City’s fire department.
Cemetery Fund - The City owns and operates a municipal cemetery. This fund accounts for all plot fees and maintenance
of the cemetery.
Cable TV Fund - The City has had a franchise agreement with Mediacom for several years. Cable franchise fees were
accounted for in this fund until 2023, when they were moved to the General Fund. PEG fees collected are still accounted
for in this fund. The PEG fees balance in this fund are restricted solely to improving public broadcasting capabilities,
studio improvements, and other capital expenditures improving the overall cable system. The assigned fund balance in
this fund is used for other communications operating and capital expenditures.
Grant Fund - This fund accounts for the revenues and expenditures related to federal and state financial assistance
programs.
Local Affordable Housing Aid Fund - This fund accounts for the revenues and expenditures related to the Local
Affordable Housing Aid program.
123
201 202 210 212 213
Charitable Local Affordable
Gambling Cemetery Cable TV Grant Fund Housing Aid Total
Assets
Cash and investments 52,384$ 72,318$ 175,773$ 1,023,043$ 126,855$ 1,450,373$
Receivables
Accounts 7,784 - 25,493 - - 33,277
Accrued interest 277 361 1,046 18,313 - 19,997
Total Assets 60,445$ 72,679$ 202,312$ 1,041,356$ 126,855$ 1,503,647$
Liabilities
Accounts payable 3,410$ -$ 86,746$ -$ -$ 90,156$
Fund Balances
Restricted for
Communications - - 43,886 - - 43,886
Public safety 57,035 - - 893,139 - 950,174
Local affordable housing - - - - 126,855 126,855
Committed - 72,679 71,680 - - 144,359
Assigned - -- 148,217 - 148,217
Total Fund Balances 57,035 72,679 115,566 1,041,356 126,855 1,413,491
Total Liabilities and Fund Balances 60,445$ 72,679$ 202,312$ 1,041,356$ 126,855$ 1,503,647$
City of Chanhassen, Minnesota
Nonmajor Special Revenue Funds
Combining Balance Sheet
December 31, 2024
124
201 202 210 212*213
Charitable Local Affordable
Gambling Cemetery Cable TV Grant Fund Housing Aid Total
Revenues
Intergovernmental -$ -$ -$ 2,345,226$ 126,855$ 2,472,081$
Franchise fees - - 49 - - 49
Charges for services - 6,100 - - - 6,100
Investment earnings 2,063 2,781 11,332 148,217 - 164,393
Miscellaneous revenues
Contributions 67,840 - - - - 67,840
Refunds and reimbursements - - 25,000 - - 25,000
Total Revenues 69,903 8,881 36,381 2,493,443 126,855 2,735,463
Expenditures
Current
General government - 800 214,701 - - 215,501
Capital outlay
Public safety 72,147 - - - - 72,147
Total Expenditures 72,147 800 214,701 - - 287,648
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,244) 8,081 (178,320) 2,493,443 126,855 2,447,815
Other Financing Sources (Uses)
Transfers out - - (30,000) (2,645,226) - (2,675,226)
Net Change in Fund Balances (2,244) 8,081 (208,320) (151,783) 126,855 (227,411)
Fund Balances, January 1, as previously reported 59,279 64,598 323,886 - - 447,763
Change to the finanicial reporting entity
Change from major to nonmajor fund - - - 1,193,139 - 1,193,139
Fund Balances, January 1, as adjusted 59,279 64,598 323,886 1,193,139 - 1,640,902
Fund Balances, December 31 57,035$ 72,679$ 115,566$ 1,041,356$ 126,855$ 1,413,491$
* Grant Fund 212 was formerly major
City of Chanhassen, Minnesota
Nonmajor Special Revenue Funds
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
For the Year Ended December 31, 2024
125
City of Chanhassen, Minnesota
Charitable Gambling Fund
Budgeted Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Investment earnings 500$ 500$ 2,063$ 1,563$ 1,979$
Miscellaneous revenues 50,000 50,000 67,840 17,840 63,203
Total Revenues 50,500 50,500 69,903 19,403 65,182
Expenditures
Capital outlay
Public safety 50,000 50,000 72,147 (22,147) 32,085
Net Change in Fund Balances 500 500 (2,244) (2,744) 33,097
Fund Balances, January 1 59,279 59,279 59,279 - 26,182
Fund Balances, December 31 59,779$ 59,779$ 57,035$ (2,744)$ 59,279$
2024
Budgeted Amounts
126
City of Chanhassen, Minnesota
Cemetery Fund
Budgeted Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Charges for services 4,500$ 4,500$ 6,100$ 1,600$ 1,900$
Investment earnings 1,300 1,300 2,781 1,481 2,944
Miscellaneous revenues - - - - 625
Total Revenues 5,800 5,800 8,881 3,081 5,469
Expenditures
Current
General government 3,000 3,000 800 2,200 954
Net Change in Fund Balances 2,800 2,800 8,081 5,281 4,515
Fund Balances, January 1 64,598 64,598 64,598 - 60,083
Fund Balances, December 31 67,398$ 67,398$ 72,679$ 5,281$ 64,598$
2024
Budgeted Amounts
127
City of Chanhassen, Minnesota
Cable Television Fund
Budgeted Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Franchise taxes -$ -$ 49$ 49$ -$
Investment earnings 6,100 6,100 11,332 5,232 16,843
Miscellaneous revenues - - 25,000 25,000 -
Total Revenues 6,100 6,100 36,381 30,281 16,843
Expenditures
Current
General government 40,000 40,000 214,701 (174,701) 41,535
Deficiency of Revenues
Under Expenditures (33,900) (33,900) (178,320) (144,420) (24,692)
Other Financing Sources (Uses)
Transfers out (170,000) (170,000) (30,000) 140,000 (45,000)
Net Change in Fund Balances (203,900) (203,900) (208,320) (4,420) (69,692)
Fund Balances, January 1 323,886 323,886 323,886 - 393,578
Fund Balances, December 31 119,986$ 119,986$ 115,566$ (4,420)$ 323,886$
2024
Budgeted Amounts
128
City of Chanhassen, Minnesota
Grant Fund
Budgeted Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Intergovernmental 1,288,849$ 1,288,849$ 2,345,226$ 1,056,377$ 1,513,590$
Investment earnings 54,100 54,100 148,217 94,117 127,624
Total Revenues 1,342,949 1,342,949 2,493,443 1,150,494 1,641,214
Deficiency of Revenues
Under Expenditures 1,342,949 1,342,949 2,493,443 1,150,494 1,641,214
Other Financing Sources (Uses)
Transfers out (1,705,000) (1,705,000) (2,645,226) (940,226) (378,623)
Net Change in Fund Balances (362,051) (362,051) (151,783) 210,268 1,262,591
Fund Balances, January 1 1,193,139 1,193,139 1,193,139 - (69,452)
Fund Balances, December 31 831,088$ 831,088$ 1,041,356$ 210,268$ 1,193,139$
2024
Budgeted Amounts
129
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130
NONMAJOR DEBT SERVICE FUNDS
Debt Service Funds are maintained on the modified accrual basis of accounting for revenues from taxes and other
sources set aside for the payment of the debt obligations of the City. Principal and interest on the general long-term debt
is recognized when due.
Permanent Revolving Debt - This fund is used to account for excess resources from matured bond issues.
General Obligation Bond Funds - These funds are used to account for the accumulation of resources for payment of
general obligation bonds or other general indebtedness and the interest thereon.
131
300 368 370 371
2009A G.O.2016A G.O.2024A G.O.
Permanent Refunding Refunding Capital
Revolving Debt Bonds Bonds Improvement Bonds Total
Assets
Cash and investments 744,721$ 874,228$ 824,708$ 485,314$ 2,928,971$
Receivables
Accrued interest 3,718 4,364 3,971 - 12,053
Taxes - - 3,108 - 3,108
Special assessments 5,321 311,122 - - 316,443
Total Assets 753,760$ 1,189,714$ 831,787$ 485,314$ 3,260,575$
Liabilities
Accounts payable -$ 500,250$ -$ -$ 500,250$
Deferred Inflows of Resources
Unavailable revenue - special assessments 5,321 311,122 - - 316,443
Fund Balances
Restricted for debt service - - 831,787 485,314 1,317,101
Assigned 748,439 378,342 - - 1,126,781
Total Fund Balances 748,439 378,342 831,787 485,314 2,443,882
Total Liabilities, Deferred Inflows
of Resources and Fund Balances 753,760$ 1,189,714$ 831,787$ 485,314$ 3,260,575$
City of Chanhassen, Minnesota
Debt Service Funds
Combining Balance Sheet
December 31, 2024
132
300 368 370 371
2009A G.O.2016A G.O.2024A G.O.
Permanent Refunding Refunding Capital
Revolving Debt Bonds Bonds Improvement Bonds Total
Revenues
Property taxes -$ -$ 566,000$ -$ 566,000$
Investment earnings 29,203 34,281 19,307 8,611 91,402
Total Revenues 29,203 34,281 585,307 8,611 657,402
Expenditures
Current
General government - - 408 297 705
Debt service
Principal - - 395,000 - 395,000
Interest and other - - 58,743 - 58,743
Total Expenditures - - 454,151 297 454,448
Excess (Deficiency) of Revenues
Over (Under) Expenditures 29,203 34,281 131,156 8,314 202,954
Other Financing Sources (Uses)
Issuance of bonds - - - 477,000 477,000
Net Change in Fund Balances 29,203 34,281 131,156 485,314 679,954
Fund Balances, January 1 719,236 344,061 700,631 - 1,763,928
Fund Balances, December 31 748,439$ 378,342$ 831,787$ 485,314$ 2,443,882$
City of Chanhassen, Minnesota
Debt Service Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31, 2024
133
City of Chanhassen, Minnesota
2016A G.O. Refunding Bonds Fund
Budgeted Debt Service Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax Increment 566,000$ 566,000$ 566,000$ -$ 482,000$
Investment earnings 10,300 10,300 19,307 9,007 24,176
Total Revenues 576,300 576,300 585,307 9,007 506,176
Expenditures
Current
General government - - 408 (408) 350
Debt service
Principal 395,000 395,000 395,000 - 385,000
Interest and other charges 58,725 58,725 58,743 (18) 70,424
Total Expenditures 453,725 453,725 454,151 (426) 455,774
Net Change in Fund Balances 122,575 122,575 131,156 8,581 50,402
Fund Balances, January 1 700,631 700,631 700,631 - 650,229
Fund Balances, December 31 823,206$ 823,206$ 831,787$ 8,581$ 700,631$
2024
Budgeted Amounts
134
NONMAJOR CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those
financed by enterprise funds.
400 Capital Equipment/Vehicle Fund - Accounts for the City’s annual equipment purchases not related to the City’s
enterprise funds. The fund currently does include a property tax levy to support the annual purchases.
401 Park Renovation Fund - Accounts for replacement or repair of major park equipment/infrastructure, including
playgrounds, picnic shelters, hockey rinks, bridges, fences, walls, etc. The maintenance and replacement schedule is an
ongoing endeavor that will be updated as new investments are made or aging structures are removed.
402 Capital Facilities Fund - Accounts for the City’s expenditures related to the City’s facilities, except for those related to
the enterprise funds. The fund currently does include a property tax levy to support projects.
410 Park Development Fund - Accounts for park dedication fees as required by the City ordinance and Minnesota State
Statute. These funds are then utilized to finance park and trail improvements identified in the park and recreation section
of the City’s comprehensive plan.
420 Transportation Infrastructure Management - Accounts for trail construction and certain maintenance costs of local
streets such as sealcoating, patching, and inspections.
480 TIF #11 - Accounts for tax increment financing for the downtown district, TIF #11 - Frontier Development #2.
481 TIF #12 - Accounts for tax increment financing for TIF #12 - Lake Place Senior Apt.
605 TH101 Improvements - Accounts for the City’s expenditures related to TH101 Improvements.
135
400 401 402 410 420
Capital Transportation
Equipment/Park Capital Park Infrastructure
Vehicle Renovation Facilities Development Management
Assets
Cash and investments 1,753,438$ 118,877$ 256,020$ 790,974$ 896,196$
Receivables
Accounts 63,140 - - - -
Accrued interest 8,580 593 1,235 - 4,399
Taxes 3,614 - 912 - 1,274
Special assessments - - - 1,182,271 -
Due from other governments - - - - -
Total Assets 1,828,772$ 119,470$ 258,167$ 1,973,245$ 901,869$
Liabilities
Accounts payable 2,442$ -$ 26,603$ 108,161$ 112,007$
Contracts payable - - - - -
Due to other governments - - - 10,679 -
Due to other funds - - - - -
Total Liabilities 2,442 - 26,603 118,840 112,007
Deferred Inflows of Resources
Unavailable revenue - special assessments - - - 1,182,271 -
Fund Balances
Restricted for
Park improvements - - - 672,134 -
Tax increments - - - - -
Assigned for
Capital projects 1,826,330 119,470 231,564 - 789,862
Unassigned - - - - -
Total Fund Balances 1,826,330 119,470 231,564 672,134 789,862
Total Liabilities and Fund Balances 1,828,772$ 119,470$ 258,167$ 1,973,245$ 901,869$
City of Chanhassen, Minnesota
Nonmajor Capital Projects Funds
Combining Balance Sheet
December 31, 2024
136
480 481 605
Frontier Lake Place
Development Senior Apt TH101
TIF #11 TIF #12 Improvements Total
190,512$ 69,260$ 143,478$ 4,218,755$
- - - 63,140
905 360 710 16,782
- - - 5,800
- - - 1,182,271
- - 114,410 114,410
191,417$ 69,620$ 258,598$ 5,601,158$
136,490$ 69,114$ 7,024$ 461,841$
- - 165,347 165,347
- - - 10,679
- 21,000 - 21,000
136,490 90,114 172,371 658,867
- - - 1,182,271
- - - 672,134
54,927 - - 54,927
- - 86,227 3,053,453
- (20,494) (20,494)
54,927 (20,494) 86,227 3,760,020
191,417$ 69,620$ 258,598$ 5,601,158$
137
400 401 402 410 414*420
Capital Transportation
Equipment/Park Capital Park Civic Infrastructure
Vehicle Renovation Facilities Development Campus Management
Revenues
Taxes
General property 658,000$ -$ 166,000$ -$ -$ 232,000$
Tax increment - - - - - -
Intergovernmental
Other - - - - - -
Licenses and permits - - - 28,333 - -
Investment earnings 55,632 4,728 7,190 6,873 - 34,710
Miscellaneous -
Refunds and reimbursements - - - 1,963 - -
Other 2,000 - 1,228 - - -
Total Revenues 715,632 4,728 174,418 37,169 - 266,710
Expenditures
Current
Community development - - - - - -
Capital outlay
General government 265,165 - - - - -
Public safety 85,847 - 25,878 - - -
Public works 11,896 - 44,808 - - 306,688
Culture and recreation 235,959 55,028 79,602 1,055,626 - -
Community development - - - - - -
Debt service
Principal 194,623 - - 96,310 - -
Interest and other charges 82,002 - - - - -
Total Expenditures 875,492 55,028 150,288 1,151,936 - 306,688
Excess (Deficiency) of Revenues
Over (Under) Expenditures (159,860) (50,300) 24,130 (1,114,767) - (39,978)
Other Financing Sources (Uses)
Sale of capital assets 266,687 - - - - -
Transfers in - - - 938,120 - -
Issuance of leases 255,365 - - - - -
Total Other Financing
Sources (Uses)522,052 - - 938,120 - -
Net Changes in Fund Balances 362,192 (50,300) 24,130 (176,647) - (39,978)
Fund Balances, January 1, as previously reported 1,464,138 169,770 207,434 848,781 (975,263) 829,840
Change to the financial reporting entity
Change from nonmajor to major fund - - - - 975,263 -
Fund Balances, January 1, as adjusted 1,464,138 169,770 207,434 848,781 - 829,840
Fund Balances, December 31 1,826,330$ 119,470$ 231,564$ 672,134$ -$ 789,862$
* Civic Campus Fund 414 was formerly nonmajor
City of Chanhassen, Minnesota
Nonmajor Capital Projects Funds
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Year Ended December 31, 2024
138
480 481 605
Frontier Lake Place
Development Senior Apt TH101
TIF #11 TIF #12 Improvements Total
-$ -$ -$ 1,056,000$
290,995 153,586 - 444,581
- - 8,976 8,976
- - - 28,333
2,742 674 5,511 118,060
- - - 1,963
- - - 3,228
293,737 154,260 14,487 1,661,141
278,002 147,842 - 425,844
- - - 265,165
- - - 111,725
- - 8,976 372,368
- - - 1,426,215
- - - -
- - - 290,933
- - - 82,002
278,002 147,842 8,976 2,974,252
15,735 6,418 5,511 (1,313,111)
- - - 266,687
- - - 938,120
- - - 255,365
- - - 1,460,172
15,735 6,418 5,511 147,061
39,192 (26,912) 80,716 2,637,696
- - - 975,263
39,192 (26,912) 80,716 3,612,959
54,927$ (20,494)$ 86,227$ 3,760,020$
139
City of Chanhassen, Minnesota
Capital Equipment/Vehicle Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes 658,000$ 658,000$ 658,000$ -$ 615,000$
Investment earnings 16,200 16,200 55,632 39,432 66,789
Miscellaneous revenues - - 2,000 2,000 20,158
Total Revenues 674,200 674,200 715,632 41,432 701,947
Expenditures
Capital outlay
General government 12,000 12,000 265,165 (253,165) 520,924
Public safety - - 85,847 (85,847) 124,159
Public works - - 11,896 (11,896) 171,468
Culture and recreation 638,500 638,500 235,959 402,541 419,193
Debt service
Principal 369,018 369,018 194,623 174,395 113,898
Interest and other charges - - 82,002 (82,002) 55,103
Total Expenditures 1,019,518 1,019,518 875,492 144,026 1,404,745
Deficiency of Revenues
Under Expenditures (345,318) (345,318) (159,860) 185,458 (702,798)
Other Financing Sources (Uses)
Transfers in 105,000 105,000 - (105,000) -
Sale of capital assets 519,730 519,730 266,687 (253,043) 293,907
Issuance of leases - - 255,365 255,365 506,576
Transfers out - - - - (200,000)
Total Other Financing
Sources (Uses)624,730 624,730 522,052 (102,678) 600,483
Net Change in Fund Balances 279,412 279,412 362,192 82,780 (102,315)
Fund Balances, January 1 1,464,138 1,464,138 1,464,138 - 1,566,453
Fund Balances, December 31 1,743,550$ 1,743,550$ 1,826,330$ 82,780$ 1,464,138$
2024
Budgeted Amounts
140
City of Chanhassen, Minnesota
Capital Facilities Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes 166,000$ 166,000$ 166,000$ -$ 155,000$
Investment earnings 2,100 2,100 7,190 5,090 8,219
Miscellaneous revenues - - 1,228 1,228 -
Total Revenues 168,100 168,100 174,418 6,318 163,219
Expenditures
Capital outlay
Public safety 12,000 12,000 25,878 (13,878) 229,508
Public works 142,000 142,000 44,808 97,192 -
Culture and recreation 25,000 25,000 79,602 (54,602) 24,908
Total Expenditures 179,000 179,000 150,288 28,712 254,416
Deficiency of Revenues
Under Expenditures (10,900) (10,900) 24,130 35,030 (91,197)
Other Financing Sources (Uses)
Transfers in - - - - 200,000
Net Change in Fund Balances (10,900) (10,900) 24,130 35,030 108,803
Fund Balances, January 1 207,434 207,434 207,434 - 98,631
Fund Balances, December 31 196,534$ 196,534$ 231,564$ 35,030$ 207,434$
2024
Budgeted Amounts
141
City of Chanhassen, Minnesota
Park Development Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Intergovernmental 250,000$ 250,000$ -$ (250,000)$ -$
Licenses and permits 200,000 200,000 28,333 (171,667) 424,099
Investment earnings 15,800 15,800 6,873 (8,927) 23,704
Miscellaneous revenues - - 1,963 1,963 74,720
Total Revenues 465,800 465,800 37,169 (428,631) 522,523
Expenditures
Capital outlay
Culture and recreation 2,971,310 2,971,310 1,055,626 1,915,684 243,623
Debt service
Principal - - 96,310 (96,310) 96,310
Total Expenditures 2,971,310 2,971,310 1,151,936 1,819,374 339,933
Deficiency of Revenues
Under Expenditures (2,505,510) (2,505,510) (1,114,767) 1,390,743 182,590
Other Financing Sources (Uses)
Transfers in 1,575,000 1,575,000 938,120 (636,880) 243,623
Net Change in Fund Balances (930,510) (930,510) (176,647) 753,863 426,213
Fund Balances, January 1 848,781 848,781 848,781 - 422,568
Fund Balances, December 31 (81,729)$ (81,729)$ 672,134$ 753,863$ 848,781$
2024
Budgeted Amounts
142
City of Chanhassen, Minnesota
Transportation Infrastructure Management Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Taxes 232,000$ 232,000$ 232,000$ -$ 544,000$
Investment earnings 10,600 10,600 34,710 24,110 42,348
Miscellaneous revenues - - - - -
Total Revenues 242,600 242,600 266,710 24,110 586,348
Expenditures
Capital outlay
Public works 281,000 281,000 306,688 (25,688) 536,060
Net Change in Fund Balances (38,400) (38,400) (39,978) (1,578) 50,288
Fund Balances, January 1 829,840 829,840 829,840 - 779,552
Fund Balances, December 31 791,440$ 791,440$ 789,862$ (1,578)$ 829,840$
2024
Budgeted Amounts
143
City of Chanhassen, Minnesota
Frontier Development TIF #11 Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax Increment 279,284$ 279,284$ 290,995$ 11,711$ 255,261$
Investment earnings 574 574 2,742 2,168 3,767
Total Revenues 279,858 279,858 293,737 13,879 259,028
Expenditures
Capital outlay
Community development 265,964 265,964 278,002 (12,038) 244,416
Net Change in Fund Balances 13,894 13,894 15,735 1,841 14,612
Fund Balances, January 1 39,192 39,192 39,192 - 24,580
Fund Balances, December 31 53,086$ 53,086$ 54,927$ 1,841$ 39,192$
2024
Budgeted Amounts
144
City of Chanhassen, Minnesota
Lake Place Senior Apt TIF #12 Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax Increment 130,000$ 130,000$ 153,586$ 23,586$ 26,806$
Investment earnings - - 674 674 190
Total Revenues 130,000 130,000 154,260 24,260 26,996
Expenditures
Capital outlay
Community development 118,000 118,000 147,842 (29,842) 29,205
Deficiency of Revenues
Under Expenditures 12,000 12,000 6,418 (5,582) (2,209)
Other Financing Sources (Uses)
Transfers out (1,125) (1,125) - 1,125 -
Net Change in Fund Balances 10,875 10,875 6,418 (4,457) (2,209)
Fund Balances, January 1 (26,912) (26,912) (26,912) - (24,703)
Fund Balances, December 31 (16,037)$ (16,037)$ (20,494)$ (4,457)$ (26,912)$
2024
Budgeted Amounts
145
City of Chanhassen, Minnesota
PMP Pavement Management Capital Fund
Budgeted Capital Project Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual
For the Year Ended December 31, 2024
(With Comparative Totals for December 31, 2023)
2023
Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues
Tax Increment 982,000$ 982,000$ 982,000$ -$ 918,000$
Intergovernmental 15,636,780 15,636,780 5,367,221 (10,269,559) 578,749
Franchise taxes 1,912,000 1,912,000 1,899,990 (12,010) 1,902,580
Special assessments 384,067 384,067 1,397,913 1,013,846 1,310,047
Investment earnings 69,650 69,650 340,916 271,266 187,861
Total Revenues 18,984,497 18,984,497 9,988,040 (8,996,457) 4,897,237
Expenditures
Capital outlay
Public works 26,870,000 26,870,000 12,384,055 14,485,945 5,759,339
Debt service
Principal - - 145,000 (145,000) 145,000
Total Expenditures 26,870,000 26,870,000 12,529,055 14,340,945 5,904,339
Deficiency of Revenues
Under Expenditures (7,885,503) (7,885,503) (2,541,015) 5,344,488 (1,007,102)
Other Financing Sources
Issuance of bonds 3,895,000 3,895,000 - (3,895,000) -
Net Change in Fund Balances (3,990,503) (3,990,503) (2,541,015) 1,449,488 (1,007,102)
Fund Balances, January 1 3,312,577 3,312,577 3,312,577 - 4,319,679
Fund Balances, December 31 (677,926)$ (677,926)$ 771,562$ 1,449,488$ 3,312,577$
2024
Budgeted Amounts
146
STATISTICAL SECTION (UNAUDITED)
CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2024
147
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BLANK INTENTIONALLY
148
STATISTICAL SECTION (UNAUDITED)
This part of the City’s annual comprehensive financial report presents detailed information as a context for understanding
what the information in the financial statements, note disclosures, and required supplementary information says about
the government’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the government’s financial performance
and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the government’s most significant local revenue source,
the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the government’s current levels of
outstanding debt and the government’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which
the government’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the
government’s financial report relates to the services the government provides and the activities it performs.
149
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Net Position by Component
Last Ten Fiscal Years
2015 2016 2017 2018
Governmental Activities
Net investment in capital assets 71,225,523$ 72,588,940$ 70,255,784$ 71,053,355$
Restricted 5,982,262 3,459,840 3,270,087 2,548,980
Unrestricted 9,510,105 10,221,704 10,028,355 8,781,660
Total Governmental
Activities Net Position 86,717,890$ 86,270,484$ 83,554,226$ 82,383,995$
Business-type Activities
Net investment in capital assets 55,704,478$ 57,478,975$ 57,212,106$ 56,195,385$
Unrestricted 10,032,731 10,516,316 10,126,315 12,342,280
Total Business-type
Activities Net Position 65,737,209$ 67,995,291$ 67,338,421$ 68,537,665$
Total Primary Government
Net investment in capital assets 126,930,001$ 130,067,915$ 127,467,890$ 127,248,740$
Restricted 5,982,262 3,459,840 3,270,087 2,548,980
Unrestricted 19,542,836 20,738,020 20,154,670 21,123,940
Total Primary Government 152,455,099$ 154,265,775$ 150,892,647$ 150,921,660$
Fiscal Year
150
Table 1
2019 2020 2021 2022 2023 2024
72,986,179$ 73,063,927$ 70,860,083$ 68,702,496$ 67,404,190$ 69,207,758$
2,883,391 1,629,219 1,020,560 1,135,813 2,858,088 2,784,210
8,360,013 9,369,203 12,019,412 13,915,001 14,718,920 21,303,887
84,229,583$ 84,062,349$ 83,900,055$ 83,753,310$ 84,981,198$ 93,295,855$
54,469,960$ 55,526,666$ 56,069,887$ 56,585,833$ 56,649,651$ 59,721,155$
13,557,181 11,740,521 16,353,752 11,289,333 10,958,947 8,813,848
68,027,141$ 67,267,187$ 72,423,639$ 67,875,166$ 67,608,598$ 68,535,003$
127,456,139$ 128,590,593$ 126,929,970$ 125,288,329$ 124,053,841$ 128,928,913$
2,883,391 1,629,219 1,020,560 1,135,813 2,858,088 2,784,210
21,917,194 21,109,724 28,373,164 25,204,334 25,677,867 30,117,735
152,256,724$ 151,329,536$ 156,323,694$ 151,628,476$ 152,589,796$ 161,830,858$
Fiscal Year
151
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued on the Following Pages)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
Expenses
Governmental Activities
General government 2,775,663$ 2,887,111$ 3,230,517$ 3,291,465$
Public safety 3,826,376 3,973,031 3,969,540 3,819,890
Public works 11,153,322 7,591,530 8,161,048 7,225,531
Culture and recreation 2,952,985 3,278,139 3,227,236 3,158,725
Community development 527,268 689,448 918,962 589,570
Interest on long-term debt 409,676 493,746 408,273 173,323
Total Governmental Activities Expenses 21,645,290 18,913,005 19,915,576 18,258,504
Business-type Activities
Water 3,290,265 4,422,789 3,866,810 4,567,874
Sewer 3,297,128 3,254,619 3,746,880 4,122,804
Surface water management 1,328,144 1,388,979 1,538,468 1,634,475
Total Business-type Activities Expenses 7,915,537 9,066,387 9,152,158 10,325,153
Total Expenses 29,560,827$ 27,979,392$ 29,067,734$ 28,583,657$
Program Revenues
Governmental Activities
Charges for services
General government 486,141$ 508,067$ 481,125$ 559,077$
Public safety 1,370,829 1,219,943 1,289,794 1,752,643
Public works 218,686 253,468 329,129 144,963
Culture and recreation 724,533 968,122 891,390 1,098,679
Community development 36,679 28,507 35,582 32,228
Operating grants and contributions 823,943 735,840 902,871 948,912
Capital grants and contributions 5,812,825 3,705,857 2,425,333 1,669,995
Total Governmental Activities
Program Revenue 9,473,636 7,419,804 6,355,224 6,206,497
Business-type Activities
Charges for services
Water 2,611,895 2,717,285 2,921,936 3,121,292
Sewer 2,525,731 2,619,882 2,764,674 3,034,207
Surface water management 668,971 684,199 709,508 764,930
Operating grants and contributions 45,130 72,007 45,109 44,604
Capital grants and contributions 3,140,823 5,199,139 1,678,595 3,965,466
Total Business-type Activities
Program Revenue 8,992,550 11,292,512 8,119,822 10,930,499
Total Program Revenues 18,466,186$ 18,712,316$ 14,475,046$ 17,136,996$
Fiscal Year
152
Table 2
2019 2020 2021 2022 2023 2024
2,968,604$ 3,503,418$ 3,545,101$ 3,537,796$ 4,326,016$ 3,810,386$
4,045,361 3,975,838 4,055,112 4,396,715 5,825,937 5,463,958
9,808,088 25,142,224 17,282,830 11,350,075 10,646,546 10,953,832
3,275,021 2,704,009 2,957,867 3,432,625 4,252,161 3,896,895
535,700 754,205 814,146 850,151 868,229 998,188
132,327 107,993 72,195 71,680 218,628 1,053,664
20,765,101 36,187,687 28,727,251 23,639,042 26,137,517 26,176,923
5,842,506 4,908,477 5,245,018 7,301,583 5,782,514 5,966,996
3,879,581 4,312,195 5,025,866 6,548,611 5,359,316 5,838,537
1,918,378 1,694,090 2,541,714 4,489,250 2,565,581 3,861,546
11,640,465 10,914,762 12,812,598 18,339,444 13,707,411 15,667,079
32,405,566$ 47,102,449$ 41,539,849$ 41,978,486$ 39,844,928$ 41,844,002$
320,681$ 426,339$ 394,576$ 483,008$ 952,621$ 466,197$
1,474,555 1,550,768 2,283,340 1,555,525 1,556,441 1,943,159
140,753 396,649 275,801 210,555 81,253 475,766
1,078,128 162,546 613,935 648,730 1,007,606 588,499
28,866 30,426 16,060 33,385 44,243 43,391
2,770,655 14,970,473 6,047,214 2,552,195 4,556,281 9,443,046
4,716,702 4,066,959 4,683,258 3,881,530 1,693,875 2,662,398
10,530,340 21,604,160 14,314,184 9,364,928 9,892,320 15,622,456
3,108,307 3,533,939 4,384,603 4,485,402 5,193,977 4,133,781
3,144,282 3,260,080 3,469,282 3,699,835 3,998,048 4,330,428
998,832 1,083,833 1,458,751 1,564,000 1,807,415 2,071,574
460,905 39,552 38,380 47,850 46,458 56,775
3,108,377 2,084,681 8,513,319 4,090,784 1,853,961 5,594,435
10,820,703 10,002,085 17,864,335 13,887,871 12,899,859 16,186,993
21,351,043$ 31,606,245$ 32,178,519$ 23,252,799$ 22,792,179$ 31,809,449$
Fiscal Year
153
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Changes in Net Position (Continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
Net (Expenses) Revenues
Governmental activities (12,171,654)$ (11,493,201)$ (13,560,352)$ (12,052,007)$
Business-type activities 1,077,013 2,226,125 (1,032,336) 605,346
Total Primary Government (11,094,641)$ (9,267,076)$ (14,592,688)$ (11,446,661)$
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes 10,536,216$ 10,643,917$ 10,826,116$ 10,877,849$
Tax increments 200,338 111,761 - -
Franchise fees - - - -
Grants and contributions not
restricted to specific programs 21,679 19,754 19,753 19,755
Unrestricted investment earnings (loss)176,731 156,202 164,393 258,456
Sale of capital assets 66,248 41,129 38,254 45,244
Other general revenues - - - -
Transfers (612,078) 73,032 (204,422) (319,528)
Total Governmental Activities 10,389,134 11,045,795 10,844,094 10,881,776
Business-type Activities
Unrestricted investment earnings 132,406 79,765 171,044 263,802
Sale of capital assets 57,510 25,224 - 10,568
Transfers 612,078 (73,032) 204,422 319,528
Total Business-type Activities 801,994 31,957 375,466 593,898
Total Primary Government 11,191,128$ 11,077,752$ 11,219,560$ 11,475,674$
Change in Net Position
Governmental activities (1,782,520)$ (447,406)$ (2,716,258)$ (1,170,231)$
Business-type activities 1,879,007 2,258,082 (656,870) 1,199,244
Total Primary Government 96,487$ 1,810,676$ (3,373,128)$ 29,013$
Note: In 2023 & 2024, transfers for both governmental activities and business-type activities is shown as $0,
as there were no transfers between opinion units.
Fiscal Year
154
Table 2
2019 2020 2021 2022 2023 2024
(10,234,761)$ (14,583,527)$ (14,413,067)$ (14,274,114)$ (16,245,197)$ (10,554,467)$
(819,762) (912,677) 5,051,737 (4,451,573) (807,552) 519,914
(11,054,523)$ (15,496,204)$ (9,361,330)$ (18,725,687)$ (17,052,749)$ (10,034,553)$
10,996,831$ 11,745,709$ 12,075,260$ 12,644,286$ 13,409,631$ 14,357,960$
- 236,485 279,653 279,283 282,067 444,581
185,181 1,826,255 2,019,812 2,036,470 2,045,767 2,040,308
20,009 - 311 170,656 390,075 141,257
491,345 368,168 (22,856) (824,062) 1,054,685 1,466,312
103,976 - 84,387 155,654 164,746 248,053
- - - - 126,114 170,653
283,007 239,676 (185,794) (334,918) - -
12,080,349 14,416,293 14,250,773 14,127,369 17,473,085 18,869,124
548,747 390,604 (78,079) (434,818) 540,984 406,491
43,498 1,795 - - - -
(283,007) (239,676) 185,794 334,918 - -
309,238 152,723 107,715 (99,900) 540,984 406,491
12,389,587$ 14,569,016$ 14,358,488$ 14,027,469$ 18,014,069$ 19,275,615$
1,845,588$ (167,234)$ (162,294)$ (146,745)$ 1,227,888$ 8,314,657$
(510,524) (759,954) 5,159,452 (4,551,473) (266,568) 926,405
1,335,064$ (927,188)$ 4,997,158$ (4,698,218)$ 961,320$ 9,241,062$
Fiscal Year
155
2015 2016 2017 2018
General Fund
Nonspendable 72,114$ 25,832$ 81,032$ 87,067$
Assigned - - - -
Unassigned 5,258,232 5,286,880 5,307,088 5,667,626
Total General Fund 5,330,346$ 5,312,712$ 5,388,120$ 5,754,693$
All other Governmental Funds
Nonspendable 1,253,705$ -$ 990,723$ 9,326$
Restricted 5,824,354 8,673,981 8,458,576 2,618,680
Committed - - - -
Assigned 5,586,353 7,806,958 6,602,135 6,414,882
Unassigned (372,509) (264,772) (154,506) (24,491)
Total all other Governmental Funds 12,291,903$ 16,216,167$ 15,896,928$ 9,018,397$
Fiscal Year
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
156
Table 3
2019 2020 2021 2022 2023 2024
82,265$ 63,775$ 69,953$ 91,340$ 63,227$ 135,138$
- - - 657,000 797,600 4,225,000
5,255,804 6,684,991 7,919,562 7,623,891 8,011,272 7,762,840
5,338,069$ 6,748,766$ 7,989,515$ 8,372,231$ 8,872,099$ 12,122,978$
8,781$ 49,690$ 690$ -$ 15,400$ -$
2,944,091 1,669,927 1,056,768 1,167,396 2,884,859 19,296,060
- - - - 344,647 144,359
6,657,125 6,809,934 7,819,511 8,603,977 7,112,372 5,100,013
(570) - (22,425) (94,155) (1,002,175) (20,494)
9,609,427$ 8,529,551$ 8,854,544$ 9,677,218$ 9,355,103$ 24,519,938$
Fiscal Year
157
2015 2016 2017 2018
Revenues
Taxes 10,529,994$ 10,640,315$ 10,820,682$ 10,856,842$
Tax increment 200,338 111,761 - -
Licenses and permits 1,565,900 1,653,858 1,641,140 2,289,052
Intergovernmental 4,897,139 974,917 2,149,875 2,019,215
Charges for services 799,543 846,540 838,498 820,745
Franchise fees - - - -
Fines and forfeits 117,189 114,367 128,394 95,351
Special assessments 1,664,424 820,026 842,523 600,056
Investment earnings 176,731 156,202 164,393 258,456
Miscellaneous 431,752 486,962 512,701 452,781
Total Revenues 20,383,010 15,804,948 17,098,206 17,392,498
Expenditures
General government 2,391,195 2,479,271 2,871,267 2,835,108
Public safety 3,431,541 3,713,146 3,602,897 3,593,877
Public works 7,537,376 3,961,016 4,617,523 3,847,782
Culture and recreation 2,068,532 2,256,314 2,395,554 2,326,272
Community development 515,382 659,276 940,000 610,368
Capital outlay 3,165,333 1,989,622 3,005,792 4,824,061
Debt service
Principal 1,810,000 1,795,000 670,000 5,985,000
Interest and fiscal charges 439,470 483,533 433,925 295,294
Total Expenditures 21,358,829 17,337,178 18,536,958 24,317,762
Deficiency of Revenues
Under Expenditures (975,819) (1,532,230) (1,438,752) (6,925,264)
Other Financing Sources (Uses)
Bond issued - 4,805,000 - -
Project financing - - - -
Leases issued - - - -
Premium on bonds issued - 239,773 - -
Sale of capital assets 41,015 90,318 19,286 58,458
Transfer in 2,158,844 1,347,883 1,924,157 6,724,164
Transfer out (1,701,005) (1,044,114) (748,522) (6,369,316)
Total Other Financing
Sources (Uses)498,854 5,438,860 1,194,921 413,306
Net Change in Fund Balances (476,965)$ 3,906,630$ (243,831)$ (6,511,958)$
Debt Service as a Percentage of
Noncapital Expenditures 12.36%14.85%7.11%32.22%
Fiscal Year
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
158
Table 4
2019 2020 2021 2022 2023 2024
10,960,876$ 11,800,538$ 12,046,658$ 12,714,095$ 13,403,452$ 14,328,499$
- 236,485 279,653 279,283 282,067 444,581
2,047,190 1,574,780 2,608,294 1,684,578 1,952,623 2,249,933
6,294,417 18,569,329 6,883,846 3,698,522 4,026,405 8,421,376
808,010 546,809 535,608 693,912 1,028,021 1,101,914
- 1,826,255 2,019,812 2,036,470 2,045,767 2,040,308
89,989 73,800 78,673 69,173 76,295 75,887
727,026 464,373 987,431 1,098,027 1,318,777 1,397,913
491,345 368,168 (22,856) (824,062) 1,055,081 1,474,923
353,177 408,248 445,083 561,796 288,661 217,572
21,772,030 35,868,785 25,862,202 22,011,794 25,477,149 31,752,906
2,644,661 3,361,771 3,452,273 3,261,430 3,504,923 3,541,180
3,802,544 3,786,905 3,858,508 4,535,583 4,820,264 5,303,287
6,041,417 20,127,051 3,207,828 7,851,764 2,521,038 2,808,607
2,418,229 1,854,471 2,247,485 2,448,568 2,752,491 2,826,840
567,461 803,234 886,104 864,577 651,641 1,010,785
6,568,983 7,280,266 10,379,700 1,613,111 10,983,787 22,498,329
720,000 1,585,000 360,000 536,502 740,208 830,933
157,312 143,970 92,680 92,290 125,527 482,083
22,920,607 38,942,668 24,484,578 21,203,825 26,099,879 39,302,044
(1,148,577) (3,073,883) 1,377,624 807,969 (622,730) (7,549,138)
- - - - - 24,250,000
- 546,108 288,929 - - -
- - - 243,263 506,576 255,365
- - - - - 1,192,800
25,698 46,443 84,983 154,158 293,907 266,687
2,153,197 2,852,877 - 642,375 793,623 2,675,226
(855,912) (40,724) (185,794) (642,375) (793,623) (2,675,226)
1,322,983 3,404,704 188,118 397,421 800,483 25,964,852
174,406$ 330,821$ 1,565,742$ 1,205,390$ 177,753$ 18,415,714$
5.37%5.46%3.21%3.21%4.08%5.75%
Fiscal Year
159
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Tax Capacity and Estimated Market Value of Property
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2015 2016 2017 2018
Tax Capacity
Residential property 32,778,287$ 33,790,483$ 34,470,607$ 36,545,419$
Agricultural 153,500 222,144 278,224 296,153
Commercial/Industrial property 9,205,053 9,508,063 9,910,242 10,317,456
All other 620,620 669,890 764,420 869,646
Total Tax Capacity 42,757,460 44,190,580 45,423,493 48,028,674
Captured tax capacity on
tax increment district (267,337) (103,638) - -
Fiscal disparity contribution (1,896,611) (2,119,400) (2,055,461) (2,009,509)
Adjusted Tax Capacity 40,593,512$ 41,967,542$ 43,368,032$ 46,019,165$
City direct tax rate 24.63317 24.25249 23.85464 22.66614
Estimated market value 3,686,777,200$ 3,802,904,100$ 3,899,829,200$ 4,112,577,100$
Tax Capacity as a Percent of EMV 1.10%1.10%1.11%1.12%
Source: Carver County Taxpayer Services and Hennepin County
Fiscal Year
160
Table 5
2019 2020 2021 2022 2023 2024
39,891,179$ 42,947,538$ 43,933,317$ 45,814,017$ 54,661,795$ 56,846,427$
191,360 135,300 133,667 125,056 138,075 140,037
10,897,809 11,666,538 12,245,999 12,596,386 13,760,724 14,874,523
896,937 886,150 935,227 600,978 601,659 564,789
51,877,285 55,635,526 57,248,210 59,136,437 69,162,253 72,425,776
- (248,355) (294,955) (299,262) (343,924) (530,995)
(2,001,778) (2,077,771) (2,261,018) (2,268,028) (2,440,367) (2,792,897)
49,875,507$ 53,309,400$ 54,692,237$ 56,569,147$ 66,377,962$ 69,101,884$
21.10456 21.17559 22.11399 22.41520 20.19532 20.95605
4,444,627,000$ 4,749,987,200$ 4,868,292,100$ 5,041,556,300$ 5,886,580,500$ 6,127,185,500$
1.12%1.12%1.12%1.12%1.13%1.13%
Fiscal Year
161
Table 6
Statistical Section (Unaudited)
Property Tax Rates - Direct and Overlapping Governments
Last Ten Fiscal Years
Fiscal Year
Direct &
Ended Operational Debt City School Carver Overlapping
December 31 and Capital Service Total District #112 County Other Total
2015 21.532 %3.101 %24.633 %39.120 %40.488 %6.270 %110.511 %
2016 21.314 2.938 24.252 39.245 38.880 6.417 108.794
2017 21.536 2.317 23.853 37.005 38.851 6.565 106.274
2018 20.731 1.935 22.666 33.837 37.436 6.537 100.476
2019 19.314 1.791 21.105 33.631 36.488 6.368 97.592
2020 19.484 1.692 21.176 33.006 35.179 6.101 95.462
2021 21.235 0.879 22.114 32.327 34.634 5.981 95.056
2022 21.559 0.856 22.415 31.220 34.170 5.747 93.552
2023 19.472 0.723 20.195 27.747 29.267 5.012 82.221
2024 20.135 0.821 20.956 28.660 30.106 5.241 84.963
Source: Carver County Taxpayer Services
*The City Direct Rate is the Urban Based Rate, not including market value levies.
City Direct Rate*Overlapping Governments
City of Chanhassen, Minnesota
162
Table 7City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Principal Property Taxpayers
Current Year and Ten Years Ago
Taxable Taxable
Capacity Capacity
Value Rank Value Rank
Nicola Dell5 LP 1,207,110$ 1 1.7 %-$ - %
LFT Real Estate Company Inc 960,798 2 1.4 - -
Istar Minnesota LLC 724,642 3 1.0 420,786 1 1.0
IPX West Village Station LLC 452,076 4 0.6 - -
Lake Susan Apartment Homes LLC 433,391 5 0.6 - -
Rosemount 407,724 6 0.6 316,584 3 0.8
Chanhassen Frontier LLC 353,079 7 0.5 - -
8610 LLP 322,060 8 0.5 - -
Mission Hills Sr Housing Owner LLC 304,249 9 0.4 - -
James Campbell Company LLC 275,300 10 0.4 - -
IRET Properties - - 387,666 2 0.9
Northern States Power Co - - 274,550 4 0.7
LTF Real Estate VRDN I LLC - - 239,202 5 0.6
LTF Real Estate MP II LLC - - 208,712 6 0.5
Target Corporation T-0862 - - 200,872 7 0.5
PHM/Chanhassen Inc - - 198,833 8 0.5
DRF Chanhassen Medical Bldg - - 194,888 9 0.5
Centerpoint Energy Minnegasco - - 182,536 10 0.4
Total 5,440,429$ 7.7 %2,624,629$ 6.4 %
Total All Property 71,048,482$ 41,145,495$
Source: Carver County Taxpayer Services and Hennepin County
(1) Information pertaining to Hennepin County was not available, information listed is for Carver County only.
2024 2015 (1)
Taxpayer Capacity Value
Total City
Percentage of
Capacity Value
Total City
Percentage of
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164
Table 8City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Property Tax Levies and Tax Collections
Last Ten Fiscal Years
Collection Collections
Fiscal Total of Current in Subsequent Total
Year Levy Year's Levy Years Collections
2015 10,484,021 10,446,765 99.6 26,753 10,473,518 99.9 %
2016 10,629,621 10,564,815 99.4 49,076 10,613,891 99.9
2017 10,795,121 10,718,876 99.3 21,785 10,740,661 99.5
2018 10,913,868 10,834,344 99.3 35,653 10,869,997 99.6
2019 11,019,868 10,924,102 99.1 67,454 10,991,556 99.7
2020 11,741,368 11,656,656 99.3 40,136 11,696,792 99.6
2021 12,066,700 12,013,225 99.6 48,368 12,061,593 100.0
2022 12,663,076 12,614,877 99.6 (667) 12,614,210 99.6
2023 13,463,000 13,397,330 99.5 1,865 13,399,195 99.5
2024 14,455,000 14,380,337 99.5 - 14,380,337 99.5
Source: City Finance Department
of Levy
Percentage
Collected To Date
of Levy Collected
Percentage
165
General Tax General
Fiscal Obligation Revenue Increment Improvement Lease Other
Year Bonds Bonds Bonds Bonds Obligations Debt (1)
2015 8,925,000$ -$ -$ 1,155,000$ -$ -$
2016 13,313,788 - - - - -
2017 12,627,803 - - - - -
2018 6,626,818 - - - - -
2019 5,890,833 - - - - -
2020 4,289,848 - - - - 546,108
2021 3,913,863 - - - - 835,037
2022 3,527,878 - - - 221,761 690,037
2023 3,126,893 - - - 614,439 448,727
2024 28,158,708 - - - 675,181 207,417
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) The City has a Joint Powers Agreement with Carver County for the Lyman Boulevard-Phase 3 project
and the pedestrian trail to the Arboretum. The City is paying its portion of those projects to Carver County through 2025
at 0% interest.
(2) Information pertaining to Chanhassen Personal Income is not available, information for
Carver County was included instead.
(a) Information not available
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
166
Table 9
G.O.Total
Revenue Lease Primary Per
Bonds Obligations Government Capita
9,256,235$ -$ 19,336,235$ 0.30 784$
13,926,719 - 27,240,507 0.42 1,092
23,379,318 - 36,007,121 0.52 1,425
25,671,988 - 32,298,806 0.44 1,238
23,755,499 - 29,646,332 0.38 1,125
28,535,933 - 33,371,889 0.41 1,228
26,311,508 - 31,060,408 0.34 1,182
24,132,877 26,136 28,598,689 0.29 1,081
22,169,245 37,140 26,396,444 0.25 977
20,295,613 218,636 49,555,555 (a)1,920
Income (2)
of Personal
Percentage
Business-type
Activities
167
General G.O. Tax G.O.G.O.Total General
Fiscal Obligation Increment Improvement Revenue Obligation
Year Bonds Bonds Bonds Bonds Bonded Debt
2015 8,925,000$ -$ 1,155,000$ 9,256,235$ 19,336,235$
2016 13,313,788 - - 13,926,719 27,240,507
2017 12,627,803 - - 23,379,318 36,007,121
2018 6,626,818 - - 25,671,988 32,298,806
2019 5,890,833 - - 23,755,499 29,646,332
2020 4,289,848 - - 28,535,933 32,825,781
2021 3,913,863 - - 26,311,508 30,225,371
2022 3,527,878 - - 24,132,877 27,660,755
2023 3,126,893 - - 22,169,245 25,296,138
2024 28,158,708 - - 20,295,613 48,454,321
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
168
Table 10
Net General
Less Amounts Net General Percentage Obligation
Restricted for Obligation of Tax Bonded Debt
Debt Service Bonded Debt Capacity Per Capita
(3,455,171)$ 15,881,064$ 38.60%644$
(6,418,913) 20,821,594 48.72%834
(6,413,214) 29,593,907 67.23%1,171
(1,189,446) 31,109,360 66.81%1,192
(1,283,606) 28,362,726 56.31%1,076
(564,713) 32,261,068 60.00%1,187
(594,203) 29,631,168 53.63%1,128
(618,646) 27,042,109 47.38%1,031
(673,860) 24,622,278 37.09%912
(897,387) 47,556,934 68.82%1,843
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Table 11City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Computation of Direct and Overlapping Debt
December 31, 2024
Estimated
Share of
Debt Overlapping
Outstanding Debt
Direct Debt
City of Chanhassen (1)(2)29,041,306$ 100.00 %29,041,306$
Overlapping Debt
Eastern Carver County School District 117,520,000 34.37 %40,391,624
Eden Prairie Independent School District 95,804,496 1.04 996,367
Carver County 5,930,000 28.95 1,716,735
Hennepin County 1,192,537,479 0.06 715,522
Hennepin Suburban Park District 48,916,041 0.08 39,133
Hennepin Regional Railroad Authority 76,774,733 0.06 46,065
Metropolitan Council 40,609,929 0.03 12,183
Total Overlapping Debt 1,578,092,678 64.59 43,917,629
Total Direct and Overlapping Debt 1,607,133,984$ 72,958,935$
(1) Excludes debt related to the City's business-type activities.
(2) The City has a Joint Powers Agreement for the Lyman Boulevard-Phase 3 project and the pedestrian trail to the
Arboretum. Included in this total is the amount the City is paying for its share of those projects to Carver County
through 2025 at 0% interest.
Estimated
Percentage
Applicable
171
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Legal Debt Margin Information
Last Ten Fiscal Years
2015 2016 2017 2018
Population 24,655 24,951 25,273 26,088
Debt Limit 110,603,316$ 114,087,123$ 116,994,876$ 123,377,313$
Total Net Debt Applicable to Limit 7,346,583 6,721,445 6,048,333 5,377,482
Legal Debt Margin 103,256,733$ 107,365,678$ 110,946,543$ 117,999,831$
Total Net Debt Applicable to the Limit as
a Percentage of Debt Limit 6.64%5.89%5.17%4.36%
Total Net Debt Applicable to Limit per Capita 298$ 269$ 239$ 206$
Legal Debt Margin Calculation for Fiscal Year
Estimated Taxable Market Value
Debt Limit (3% of Taxable Market Value)
Debt Applicable to Limit
Total Bonded Debt
Less
Special Assessment Bonds
Tax Increment Bonds
Enterprise Fund Debt
Less
Cash and investments in G.O. Bond Debt Service Fund
Total Net Debt Applicable to Limit
Legal Debt Margin
Note: Under state of Minnesota law, the City's outstanding general obligation debt should not exceed 3 percent of the
market value of taxable property. By law, the general obligation debt subject to the limitation may be offset by amounts
set aside for the extinguishment of those obligations.
Fiscal Year
172
Table 12
2019 2020 2021 2022 2023 2024
26,335 27,170 26,271 26,237 27,005 25,807
133,338,810$ 142,499,616$ 146,048,763$ 151,246,689$ 176,597,415$ 183,815,565$
4,555,132 3,686,297 3,288,043 2,883,662 2,431,979 26,848,686
128,783,678$ 138,813,319$ 142,760,720$ 148,363,027$ 174,165,436$ 156,966,879$
3.42%2.59%2.25%1.91%1.38%14.61%
173$ 136$ 125$ 110$ 90$ 1,040$
6,127,185,500$
183,815,565$
48,454,321$
-
-
(20,295,613)
(1,310,022)
26,848,686
156,966,879$
Fiscal Year
173
Table 13
Special
Fiscal Assessment
Year Collections Principal Interest
2015 751,995$ 550,000$ 42,900$ 1.268 %
2016 6,298 1,155,000 26,175 0.005
2017 - - - -
2018 - - - -
2019 - - - -
2020 - - - -
2021 - - - -
2022 - - - -
2023 - - - -
2024 - - - -
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Improvement bonds with a designated revenue source of special assessments were paid off in 2016.
Debt Service
Coverage
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Pledged-revenue Coverage
Last Ten Fiscal Years
Improvement Bonds
174
Table 14City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Demographic and Economic Statistics
Last Ten Fiscal Years
Carver County Carver County
Fiscal Chanhassen Personal Income Per Capita
Year Population (1)(thousands)(4)Personal Income
2015 24,655 2.9 %3.2 %6,376,686$ 64,431$
2016 24,951 2.9 3.3 6,539,351 64,864
2017 25,273 3.0 2.9 6,990,605 68,125
2018 26,088 2.6 2.5 7,383,477 70,880
2019 26,355 2.7 2.8 7,755,123 73,328
2020 27,170 5.4 5.2 8,064,279 75,158
2021 26,271 2.7 2.9 9,077,666 83,389
2022 26,237 1.8 2.0 9,736,399 88,416
2023 27,005 2.3 2.4 10,355,178 93,242
2024 25,807 2.5 2.6 (a)(a)
Sources:(1) Federal Census Data and Chanhassen Planning Department
(2) State of Minnesota, Department of Employment and Economic Development
(3) U.S. Department of Commerce, Bureau of Economic Analysis
(a) Information not available
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available,
information for Carver County was included instead.
Rate (3)
Unemployment
Carver CountyChanhassen
Unemployment
Rate (2)
175
Number
of Employees Rank
Lifetime Fitness 1,350 1 26.7 %
The Bernard Group 749 2 14.8
Instant Web Companies 718 3 14.2
Rosemount Inc 554 4 11.0
General Mills 350 5 6.9
Eastern Carver County Schools 341 6 6.7
Chanhassen Dinner Theatres 340 7 6.7
Target 234 8 4.6
Minnesota Landscape Arboretum 212 9 4.2
RR Donnelley 210 10 4.2
Exlar Corporation -
Total 5,058 100.0 %
Source: Survey by City Administration and Finance Departments.
Note: This does not purport to be a comprehensive list and is based on available data obtained through a
survey of individual employers. Some employers do not respond to inquiries for employment data.
(1) The statistic for total City employment is not available, therefore the percentage represents the
percentage of the top ten listed.
2024
Percent of
Total City
City of Chanhassen, Minnesota
Statistical Section (Unaudited)
Principal Employers
Current Year and Nine Years Ago
Employer Employment (1)
176
Table 15
Number
of Employees Rank
1,166 3 19.8 %
500 4 8.5
1,236 1 20.9
1,196 2 20.3
335 7 5.7
400 5 6.8
259 8 4.4
-
231 9 3.9
382 6 6.5
195 10 3.3
5,900 100.0 %
Employment (1)
2015
Percent of
Total City
177
City of Chanhassen, Minnesota
Full-time Equivalent City Government Employees by Function
Last Ten Fiscal Years
2015 2016 2017 2018
General Government 13 13 13 13
Public Safety 10 10 10 10
Public Works 28 29 31 31
Culture and Recreation 11 12 13 13
Community Development 5 6 6 6
Total 67 70 73 73
Source: City Finance Department
Function
178
Table 16
2019 2020 2021 2022 2023 2024
13 13 15 17 17 17
9 9 11 13 17 18
31 32 32 32 33 33
13 14 14 13 13 13
6 6 6 6 5 5
72 74 78 81 85 86
179
City of Chanhassen, Minnesota
Operating Indicators by Function
Last Ten Fiscal Years
2015 2016 2017 2018
3,266 2,891 2,981 3,085
82,145,483$ 73,881,121$ 82,430,550$ 136,016,287$
16,344 17,769 17,769 17,480
45 45 45 45
22.88 22.88 22.88 22.88
employees (excluding fire department)67 70 73 73
15 15 15 15
Number of crimes - MNCJRS (1)870 313 - -
Number of crimes - NIBRS (1)- 472 737 698
Water
Number of customers 8,195 8,254 8,312 8,407
Daily average consumption - gallons 2,495,868 2,565,905 2,624,486 2,888,586
Plant capacity - gallons 8,550,000 8,550,000 8,550,000 17,100,000
(1) Crime statistics in Minnesota had been reported for the last forty years utilizing Minnesota's Criminal Justice
Reporting System (MNCJRS). The Federal Bureau of Investigation has mandated that all states become National
Incident Based Reporting System (NIBRS) compliant by 2019. The Carver County Sheriff's Office transitioned to NIBRS
June 1, 2016.
Registered voters
Function/Program
Building
Total permits issued
Total estimated value
Election
Average number of permanent full-time
Police
Average number of employees
Source: Various City Departments
Fire
Average number of employees
General government
Area of city - square miles
180
Table 17
2019 2020 2021 2022 2023 2024
3,259 4,528 6,072 3,936 3,439 3,277
103,902,405$ 87,160,588$ 160,438,828$ 87,812,422$ 90,564,997$ 160,521,505$
17,480 19,245 19,245 19,182 19,182 19,959
45 45 41 37 30 27
22.88 22.88 22.88 22.88 22.88 22.88
72 74 78 81 85 86
15 15 15 15 15 15
- - - - - -
692 796 758 740 526 443
8,481 8,539 8,608 8,689 8,732 8,760
2,247,455 2,677,163 3,040,992 2,953,945 3,087,597 2,429,693
17,100,000 17,100,000 17,100,000 17,100,000 17,100,000 17,100,000
181
City of Chanhassen, Minnesota
Capital Asset Statistics by Function
Last Ten Fiscal Years
2015 2016 2017 2018
Fire
Number of stations 2 2 2 2
Culture and Recreation
Acres of parks 384 384 445 445
Acres of open space 568 568 593 593
Number of shelter buildings 4 4 4 4
Number of picnic shelters 13 15 18 21
Number of playgrounds 27 27 27 27
Number of swimming beaches 5 5 5 5
Number of tennis courts 15 15 16 16
Number of outdoor pickleball courts 6 6 10 10
Police
Number of stations 1 1 1 1
Public works
Miles of streets 114.7 117.3 117.3 117.8
Miles of sidewalks 34.7 36.7 36.7 36.7
Miles of trails 57.4 59.9 59.9 62.5
Sewer
Miles of storm sewers 76.0 81.5 81.7 84.0
Miles of sanitary sewers 124.1 127.0 127.0 127.4
Number of lift stations 31 31 31 31
Water
Miles of watermains 142.1 147.0 147.0 150.2
Number of wells 12 13 13 13
Source: Various City Departments
Function/Program
182
Table 18
2019 2020 2021 2022 2023 2024
2 2 2 2 1 1
445 445 445 445 445 440
693 693 693 693 693 693
4 4 4 4 4 4
21 21 21 21 21 21
28 28 28 28 28 28
5 5 5 5 5 5
16 16 16 16 16 16
10 10 10 10 10 10
1 1 1 1 1 1
117.9 118.1 118.1 118.9 118.9 118.7
36.7 36.7 36.7 36.8 36.8 36.9
63.9 66.2 66.6 66.6 68.9 74.7
84.1 84.9 85.9 86.9 87.4 88.5
127.5 127.7 128.4 130.3 130.3 133.8
31 31 31 32 32 32
150.4 151.1 151.6 152.5 154.7 159.1
13 13 13 13 13 13
183