A-1. Review 2013 Audit0
A-1-
0111 OF
MEMORANDUM
CI1H11IMSEN
Fax: 952.227.1310
1.
TO: Mayor & City Council
7700 Market Boulevard
PC Box 147
FROM: Greg Sticha, Finance Director
Chanhassen, MN 55317
Internal Controls over Financial Reporting
Fax: 952.227.1110
DATE: June 9, 2014 0W,
Administration
Phone: 952.227.1100
SUBJ: Review 2013 Audit
Fax: 952.227.1110
5.
Building Inspections
Phone: 952.227.1180
The Finance 1
Department just finished another audit cycle. Andy Herring from
p
Fax: 952.227.1190
HLB Tautges Redpath will be present to review the financial results and audit
findings for 2013.
Engineering
Phone: 952.227.1160
BACKGROUND
Fax: 952.227.1170
Finance
The financial statements take into account the city's entire financial picture and
Phone: 952.227.1140
are in a format similar to a proprietary or for -profit organization. This includes a
Fax: 952.227.1110
statement of activities that break out the primary government and proprietary
revenues and expenses by function.
Park & Recreation
Phone: 952.227.1120
For 2013, the General Fund finished with a $417,466 increase in fund balance.
Fax: 952.227.1110
Staff would recommend $317,466 of this surplus be transferred to the Revolving
Recreation Center
Assessment Construction Fund and $100,000 be transferred to the City's Capital
2310 Coulter Boulevard
Equipment Replacement fund to be used for park shelters in our neighborhood
Phone: 952.227.1400
parks for 2015.
Fax: 952.227.1404
There are three reports that HLB Tautges Redpath completes for the city as part of
Planning &
Natural Resources the audit. Attached are copies of all three reports and representatives from HLB
Phone: 952.227.1130 Tautges Redpath will review each report with the city council. In addition, they
Fax: 952.227.1110 will be reviewing a PowerPoint that will give some insight on how a number of
various funds finished the 2013 audit year.
Public Works
7901 Park Place
ATTACHMENTS
Phone: 952.227.1300
Fax: 952.227.1310
1.
Compliance with Minnesota Legal Compliance Guide for Local
Senior Center
Governments Report
Phone: 952.227.1125
2•
Internal Controls over Financial Reporting
Fax: 952.227.1110
3.
Communication with Those Charged with Governance Report
4.
2013 Comprehensive Annual Financial Report
Web Site
5.
PowerPoint Presentation dated June 9, 2014
www.ci.chanhassen.mn.us
fAgregs\audit\2013\review of 2013 audit.doex
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
TAUTGES REDPATH, LTD.
Certified Public Accountants
MINNESOTA LEGAL COMPLIANCE
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
We have audited, 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 Stated, the financial statements of
the governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City of Chanhassen, Minnesota as of and for the year ended
December 31, 2013, and the related notes to the financial statements, and have issued our report
thereon dated May 27, 2014.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the
State Auditor pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, miscellaneous provisions and tax increment financing.
Our audit considered all of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the City
of Chanhassen, Minnesota failed to comply with the provisions of the Minnesota Legal
Compliance Audit Guide for Political Subdivisions, except as described at finding 2013 -1.
However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed additional procedures, other matters may have
come to our attention regarding the City of Chanhassen, Minnesota's noncompliance with the
above referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the
results of that testing, and not to provide an opinion on compliance. Accordingly, this
communication is not suitable for any other purpose.
HLB TAUTGES REDPATH, LTD.
May 27, 2014
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100 - Percent Employee -Owned
HLB Tautges Redpath is a member of HLB International, a world -wide network of independent accounting firms and business advisors,
2013 -1 Deficiencies in Collateral for Deposits
Criteria: Minnesota Statute 118A provides certain specific collateral requirements for
deposits, including a requirement that collateral be provided in an amount equal to or greater
than 110% of uninsured deposits at a financial institution.
Condition: At December 31, 2013, the City held deposits in the amount of $3,634,154 in its
checking account. $250,000 of these deposits are insured by the FDIC. Collateral required on
the uninsured deposits was $3,722,569 ($3,384,154 x 110 %). The market value of collateral
provided at December 31, 2013 was $3,342,318, resulting in a collateral deficiency of $380,251.
Cause: The City deposited $499,642 on December 30 and $359,729 late in the day on December
31. These deposits contributed to a deficiency at year end.
Effect: Custodial credit risk is the risk that in the event of a bank failure, the City's deposits may
not be returned to it. Insufficient collateral increases this risk.
Recommendation: We recommend the City verify sufficient collateral is maintained by the bank
in order to comply with Minnesota Statute 118A.03 and reduce its custodial credit risk.
Views of Responsible Officials and Planned Corrective Action: Staff has requested, and its bank
has increased, the collateral in the account by an additional $200,000. In addition, other internal
controls and communication processes have been implemented in order to become aware of large
late day receipts in order to plan for deposits in other collateralized or insured accounts if
neccesarry.
TAUTGES REDPATH, LTD.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT A UDITING STANDARDS
To the Honorable Mayor, Members of
the City Council and Management
City of Chanhassen, Minnesota
We have audited, in accordance with the 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, the financial
statements of the governmental activities, the business -type activities, each major fund and
the aggregate remaining fund information of the City of Chanhassen, Minnesota, as of and
for the year ended December 31, 2013, and the related notes to the financial statements,
which collectively comprise the City of Chanhassen, Minnesota's basic financial statements
and have issued our report thereon dated May 27, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Chanhassen, Minnesota's internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City of Chanhassen, Minnesota's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Chanhassen,
Minnesota's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be
prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100 - Percent Employee -Owned
HLB Tautges Redpath is a member of HLB International, a world -wide network of independent accounting firms and business advisors.
City of Chanhassen, Minnesota
Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters
Page 2
our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Chanhassen,
Minnesota's financial statements are free from material misstatement, we performed tests of
its compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.
� ,c
HLB TAUTGES REDPATH, LTD.
May 27, 2014
TAUTGES REDPATH, LTD.
Certified Public Accountants
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
We have audited the financial statements of the governmental activities, the business-
type activities, each major fund and the aggregate remaining fund information of the City of
Chanhassen, Minnesota for the year ended December 31, 2013. Professional standards
require that we provide you with information about our responsibilities under generally
accepted auditing standards and Government Auditing Standards, as well as certain
information related to the planning scope and timing of our audit. We have communicated
such information in our letter to you dated April 8, 2014. Professional standards also require
that we communicate to you the following information related to our audit.
Significant Audit Results
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies.
The significant accounting policies used by the City are described in Note 1 to the financial
statements. As described in Note 16 to the financial statements, the City changed accounting
policies by adopting GASB Statement No. 65 during 2013. GASB Statement No. 65, Items
Previously Reported as Assets and Liabilities, resulted in accounts previously presented as
liabilities being reclassified as deferred inflows of resources.
We noted no transactions entered into by the City during the year for which there is a
lack of authoritative guidance or consensus. All significant transactions have been
recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's knowledge and experience about past and
current events and assumptions about future events. Certain accounting estimates are
particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected.
The most sensitive estimate affecting the financial statements was management's estimate of
the portion of construction projects which will be capitalized. This estimate is based on
feasibility reports and estimates of the City Engineer. We evaluated the key factors and
assumptions used to develop this estimate in determining that it is reasonable in relation to
the financial statements taken as a whole.
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100 - Percent Employee -Owned
HLB Tautges Redpath is a member of HLB International, a world -wide network of independent accounting firms and business advisors.
City of Chanhassen, Minnesota
Communication With Those Charged With Governance
Page 2
The financial statement disclosures are neutral, consistent and clear.
Difficulties Encountered in Performing the Audit
We encountered no difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are clearly trivial, and communicate them to
the appropriate level of management. We identified one known uncorrected misstatement of
the financial statements:
GASB Statement No. 65 no longer allows for unamortized bond issue costs to be
recorded as an asset. As such, the City expensed the balance of this asset in 2013,
which overstated interest expense by $133,000. The additional expense had no effect
on ending net position, as the alternate method to recording this transaction would
have been to restate beginning balances.
Management has determined that the effects of the above misstatement are immaterial,
both individually and in the aggregate, to the financial statements taken as a whole. We
agree with that conclusion.
Management also corrected a $227,000 material misstatement in the Street Pavement
Management Fund relating to the timing of revenue recognition. During 2013, funds eligible
for reimbursement through MNDOT's municipal state aid program were expended, but a
reimbursement request was not made until April 24, 2014. It is our understanding that the
City would have applied for reimbursement at a later date, likely near the completion of the
project. However, accounting principles state revenue should be recorded when earned,
which in this instance, was when the expenditures were incurred. We recommend future
projects be reviewed at year end to determine whether the City is eligible for reimbursement
of expenditures at that time.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting,
reporting, or auditing matter, whether or not resolved to our satisfaction, that could be
significant to the financial statements or the auditor's report. We are pleased to report that no
such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated May 27, 2014.
City of Chanhassen, Minnesota
Communication With Those Charged With Governance
Page 3
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing
and accounting matters, similar to obtaining a "second opinion" on certain situations. If a
consultation involves application of an accounting principle to the City's financial statements
or a determination of the type of auditor's opinion that may be expressed on those statements,
our professional standards require the consulting accountant to check with us to determine
that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting
principles and auditing standards, with management each year prior to retention as the City's
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
Other Matters
With respect to the supplementary information accompanying the financial statements,
we made certain inquiries of management and evaluated the form, content, and methods of
preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has
not changed from the prior period, and the information is appropriate and complete in
relation to our audit of the financial statements. We compared and reconciled the
supplementary information to the underlying accounting records used to prepare the financial
statements or to the financial statements themselves. We also read the other information
accompanying the financial statements and did not identify any material inconsistencies
between the other information and the audited financial statements.
Closing
This information is intended solely for the information and use of the City of
Chanhassen, Minnesota's City Council and management, and is not intended to be, and
should not be, used by anyone other than these specified parties.
HLB TAUTGES REDPATH, LTD.
May 27, 2014
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
Finance Department
Greg Sticha, Finance Director
Member of Government Finance Officers
Association of United States and Canada
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CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Page
Reference No.
Letter of Transmittal 3
Certificate of Achievement 6
Organization Chart 7
Organization g
II. FINANCIAL SECTION
Independent Auditor's Report
11
Management's Discussion and Analysis
15
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
Statement 1
31
Statement of Activities
Statement 2
32
Fund Financial Statements:
Balance Sheet - Governmental Funds
Statement 3
35
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Statement 4
36
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds To the Statement of Activities
Statement 5
38
Statement of Net Position - Proprietary Funds
Statement 6
39
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
Statement 7
40
Statement of Cash Flows - Proprietary Funds
Statement 8
41
Statement of Net Position - Fiduciary Funds
Statement 9
42
Notes to Financial Statements
43
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund
Statement 10
82
Schedule of Funding Progress - Retiree Health Plan
88
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 11 92
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds Statement 12 93
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 13
96
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds
Statement 14
97
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 15
100
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds
Statement 16
101
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 17
104
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds
Statement 18
107
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 19 110
CATV Statement 20 111
Combining Statement of Net Position - Agency Funds Statement 21 114
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 22 115
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component Table 1 120
Changes in Net Position Table 2 122
Fund Balances - Governmental Funds Table 3 126
Changes in Fund Balances - Governmental Funds Table 4 128
Revenue Capacity:
Tax Capacity and Estimated Market Value of Taxable Property Table 5 130
Direct and Overlapping Property Tax Capacity Rates Table 6 132
Principal Property Taxpayers Table 7 133
Property Tax Levies and Collections Table 8 135
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Debt Capacity:
Ratios of Outstanding Debt by Type
Table 9
136
Ratios of General Bonded Debt Outstanding
Table 10
138
Direct and Overlapping Governmental Activities Debt
Table 11
139
Legal Debt Margin Information
Table 12
140
Pledged Revenue Coverage
Table 13
141
Demographic and Economic:
Demographic and Economic Statistics
Table 14
142
Principal Employers
Table 15
143
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program
Table 16
144
Operating Indicators by Function/Program
Table 17
146
Capital Asset Statistics by Function/Program
Table 18
148
IV. OTHER INFORMATION (UNAUDITED)
Combined Schedule of Indebtedness
Exhibit 1 152
Debt Service Payments to Maturity:
General Obligation Bonds - Governmental Activities
Exhibit 2 154
General Obligation Revenue Bonds
Exhibit 3 155
Schedule of Deferred Tax Levies
Exhibit 4 156
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I. INTRODUCTORY SECTION
- This page intentionally left blank -
0
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
May 27, 2014
To the Honorable Mayor and City Council
City of Chanhassen
Chanhassen, Minnesota
The Comprehensive Annual Financial Report of the City of Chanhassen, Minnesota (the City)
for the fiscal year ended December 31, 2013 is hereby submitted. This report was prepared by
the Chanhassen Finance Department and responsibility for both the accuracy of the presented
data and the completeness and fairness of the presentation, including all disclosures, supporting
schedules and statistical tables rests with the City. We believe the data, as presented, is accurate
in all material respects; that it is presented in a manner designed to fairly Iset forth the financial
position and results of operations of the City as measured by the financial activity of its various
funds; and that all disclosures necessary to enable the reader to gain the maximum understanding
of the City's financial affairs have been included.
The organization, form and contents of this report were prepared in accordance with the
standards prescribed by the Governmental Accounting Standards Board, the Government
Finance Officers Association of the United States and Canada (GFOA), the American Institute
of Certified Public Accountants, Minnesota's Office of the State Auditor and City policies.
This transmittal letter is designed to complement the Management's Discussion and Analysis
(MD &A) and should be read in conjunction with it. The MD &A can be found immediately
following the report of the independent auditors.
Park & Recreation
Phone: 952.227.1120
Reporting Entity and Its Services
Fax: 952.227.1110
This report includes all funds, account groups, and departments of the City (the primary
Recreation Center
government) and its component unit. The City provides a full range of services to its residents
2310 Coulter Boulevard
and businesses including general government, public safety (police and fire protection), public
Phone: 952.227.1400
works (engineering, streets, and equipment maintenance), parks and recreational activities,
Fax: 952.227.1404
planning and economic development. In addition to general municipal services, the City
provides water and sanitary sewer service and oversight (through licensing) of the refuse and
Planning &
recycling services. In accordance with the reporting entity definition of the Governmental
Natural Resources
Accounting Standards Board, the City has included the Chanhassen Economic Development
Phone: 952.227.1130
Authority (EDA) in these financial statements as a blended component unit. The EDA is
Fax: 952.227.1110
governed by five commissioners appointed by the City Council with the City Manager as
executive director. The Chanhassen Fire Relief Association has been excluded from this report
because it is governed by a board elected by its members and it is not fiscally dependent upon
Public Works
the City. The Western Area Fire Training Association (WAFTA) is governed by an eleven -
7901 Park Place
person board comprised of one member appointed by each jurisdiction who is a party to the joint
Phone: 952.227.1300
powers agreement. Although the City is jointly responsible for the maintenance and cleanup
Fax: 952.227.1310
costs of the training site in rural Carver County, we do not exercise substantial control of the
association. The school districts that serve residents of the City, like all school districts in
Senior Center
Minnesota, are governed independently by their own elected board members. They levy their
Phone: 952.227.1125
own taxes and prepare their own financial reports. Accordingly, they are excluded from this
Fax: 952.227.1110
report.
Web Site
www.ci.chanhassen.mn.us
3
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Relevant Financial Policies
The City has a policy regarding General Fund reserve balances. The City has a designated fund balance in the
General Fund equivalent to 50% of the ensuing year's budgeted tax levy to provide working capital between serve -
owned property tax settlements.
The primary financial goal of the City's investment policy is to ensure the safety and principal invested by the
City. Cash temporarily idle during the year is invested in certificates of deposit and obligations of the U.S.
Treasury and government agencies. The City only invests in instruments authorized under Minnesota Statute
118A. Cash balances from all City funds are pooled into an investment fund and investment income is distributed
on a pro -rata basis at the end of the year, based on average monthly cash balances. At December 31, 2013, the
maturities of the investments range from 2 days to 7 years, with an average maturity of 1.53 years. Maturities are
not to exceed 7 years unless for a dedicated purpose such as a future bond payment. The average yield to maturity
on the portfolio at December 31, 2013 was 0.95 %. It is the City's practice to hold all instruments to maturity.
Economic Condition and Outlook
The City of Chanhassen, Minnesota, located southwest of the Twin Cities metropolitan area, is situated primarily
in Carver County with a small portion in Hennepin County. The City encompasses an area of 23.78 square miles.
U.S. Highways 169 and 212, as well as State Highways 5, 7, 41 and 101, provide access for commuters coming
into the City from the Twin Cities metropolitan area as well as for residents traveling to work outside the City.
The City's population estimate as of April 1, 2013 was 23,954. Chanhassen's residential permits were
approximately the same in 2013 as compared to 2012. In 2013, there were 168 residential permits as compared to
172 in 2012. The total value of all building permits and plan checks in 2013 was $89,370,069.
The City has approximately 347 acres of commercial and office industrial land with utilities available. The City
anticipates a two percent growth rate in residential permits and a slightly higher rate for office industrial
development.
The City did not issue debt in 2013, however as the financial statements will indicate the City maintained strong
financial reserves and continues its practice of utilizing multiple long term financial planning documents.
Accounting System and Budgetary Control
The City's accounting records are maintained on the accrual, or modified accrual basis, as appropriate. Budgetary
control is maintained through the City's accounting and reporting system whereby monthly detail reports of budget
versus actual are provided to all departments with summaries being provided to the City Council. Approval
listings and documentation are provided for the City Council at each semi - monthly meeting for all checks issued
by the City.
In the City's accounting system, careful consideration is given to the adequacy of internal controls. These controls
are designed to provide reasonable, but not necessarily absolute, assurance regarding: (1) the safeguarding of
assets against loss from unauthorized use or disposition and (2) the reliability of financial records for preparing
financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes
that: (1) the cost of control should not exceed the benefits likely to be derived and (2) the evaluation of costs and
benefits requires estimates and judgments by management. All internal control evaluation occurs within the above
framework. We believe the City's internal controls adequately safeguard assets and provide reasonable assurance
of proper recording of financial transactions.
Capital financings for major municipal improvements are provided through (1) improvement bonds, (2) general
obligation bonds, (3) tax increment bonds, or (4) revenue bonds. Internal financing of improvement projects is
usually minimal and only for short periods of time.
Long Term Financial Planning
In 2002, the City undertook an extensive long term financial planning process called "Key Financial Strategies ".
As a part of this process the City developed a long term (5 years) general fund budgeting model. In addition the
City developed annual strategies and measurement tools, both financial and non - financial, to compare our results
from year to year and with other like communities in our area.
These strategies and the long term general fund budget are updated on an annual basis as part of our goal setting
strategies at the beginning of each year. In addition, the City has a 5 year capital improvement plan in place for
infrastructure and equipment, as well as a pavement management plan in place for streets.
The City also undertakes an annual rate study of its Water, Sanitary Sewer, and Storm Water rates. As part of this
process the City projects fund balances and capital improvements to each of the systems for the next twenty years,
and the projected user and connection rates needed for each fund for that same time period.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Chanhassen for its comprehensive annual
financial report (CAFR) for the fiscal year ended December 31, 2012. The Certificate of Achievement is a
prestigious national award recognizing conformance with the highest standards for preparation of state and local
government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized comprehensive annual financial report, whose contents conform to program standards. The
CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Chanhassen has received a
Certificate of Achievement for the last twenty one consecutive years (fiscal years ended 1992 — 2012). We believe
our current report continues to conform to the Certificate of Achievement program requirements and we are
submitting it to GFOA to determine its eligibility for another certificate.
Independent Audit
State law provides that the City may arrange for examination of its books, records, accounts and affairs, or any
part thereof, by the State Auditor, or by Certified Public Accountants. It has been a long- standing policy of the
City to provide for a complete annual audit of City records by Certified Public Accountants. The auditor's opinion
has been included in this report.
Acknowledgments
We wish to express our appreciation to the members of the City Council for their support in improving the
financial condition of the City. We also want to thank the Finance Department staff and department directors for
their assistance in compiling the information necessary for this report. Finally, we wish to acknowledge BLB
Tautges Redpath, Ltd. for their assistance in preparing this report.
Respectfully submitted,
Jj
Greg Sticha, Finance Director
N
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chanhassen
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2012
*4$ 0 w #d 0.: P
Executive Director /CEO
6
City of Chanhassen, Minnesota
Organization Chart
Citizens
Environmental Senior
Commission Commission
Planning ark & Recreati
Commission Mayor - Council
Commission
Economic
Development
Authority
Administration
Law
Finance Enforcement Public Community Parks and
& Fire Works Development Recreation
Administration
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2013
Term Expires
Mayor:
Tom Furlong 12/31/14
Council Members:
Bethany Tjornhom 12/31/16
Vicki Ernst 12/31/14
Jerry McDonald 12/31/16
Denny Laufenburger 12/31/14
City Manager:
Todd Gerhardt
Appointed
Finance Director:
Greg Sticha
Appointed
Community Development Director:
Kathryn Aanenson
Appointed
Public Works Director /City Engineer:
Paul Oehme
Appointed
Parks and Recreation Director:
Todd Hoffman
Appointed
II. FINANCIAL SECTION
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10
TAUTGES REDPATH, LTD,
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Chanhassen, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund and the aggregate remaining fund information of the City
of Chanhassen, Minnesota, as of and for the year ended December 31, 2013, and the related notes to
the financial statements, which collectively comprise the City of Chanhassen, Minnesota's basic
financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in GovernmentAuditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
4810 White Bear Parkway White Bear Lake, MN 55110 651.426.7000 651.426.5004 fax www.hlbtr.com
Equal Opportunity Employer 100 - Percent Employee -Owned
HLB Tautges Redpath is a member of HLB International, a world -wide network of independent accounting firms and business advisors.
11
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
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 of Chanhassen, Minnesota, as of
December 31, 2013, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Emphasis of Matter
As described in Note 16 to the financial statements, in 2013 the City of Chanhassen, Minnesota
adopted new accounting guidance, GASB Statement No. 65, Items Previously Reported as Assets
and Liabilities. Our opinion is not modified with respect to this matter.
Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota's 2012 financial statements, and we
expressed an unmodified audit opinion on the respective financial statements of the governmental
activities, the business -type activities, each major fund and the aggregate remaining fund
information in our report dated May 21, 2013. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2012 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, the budgetary comparison information and the schedule of
funding progress, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
12
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Chanhassen, Minnesota's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and schedules,
statistical section and other information, are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated in all material respects
in relation to the basic financial statements as a whole.
The introductory section, statistical section and other information have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do
not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 27,
2014, on our consideration of the City of Chanhassen, Minnesota'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 to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the City of Chanhassen, Minnesota's internal control over financial reporting and
compliance.
HLB TAUTGES REDPATH, LTD.
May 27, 2014
13
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14
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, 2013. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$158,742,770 (net position). Of this amount, $25,1 16,043 (unrestricted net position) may be
used to meet the City's ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City's total net position increased by $383,198.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $21,606,400. Of this amount, $9,181,230 is restricted by external constraints
established by creditors, grantors, contributors, or by state statutory provisions.
At the end of the current fiscal year, the General Fund had a fund balance of $5,291,325. Of that
amount, $16,741 was in a nonspendable form and the remaining $5,274,584 was unassigned.
Total debt decreased by $5,844,026 during the current fiscal year, from $38,248,313 to
$32,404,287. The City did not issue debt during 2013.
Overview of the Financial Statements
The management's discussion and analysis is intended to serve as an introduction to the City's
basic financial statements, which are comprised of three components: 1) government -wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar to
a private- sector business.
15
Management's Discussion and Analysis
The statement of net position presents information on all of the City's assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving
or deteriorating.
The statement of activities presents information showing how net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in
future fiscal periods (e.g. uncollected taxes, and earned but unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, parks and recreation, and community
development. The business -type activities include water, sewer, and surface water management.
The government -wide financial statements can be found on Statements 1 and 2 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 governments, uses fund accounting to ensure and demonstrate
compliance with finance- related legal requirements. All of the funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near -term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near -term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long -term impact of the City's near -term financial
decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
16
Management's Discussion and Analysis
The City maintains four individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures, and changes in fund balances for the following major funds:
• General Fund
• 2009A G.O. Refunding Bonds
• Revolving Assessment Fund
• TH101 Improvements —Lyman to Pioneer
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form of
combining statements elsewhere in this report.
The City adopts an annual appropriated budget for the General Fund and for the Contribution
and CATV special revenue funds. A budgetary comparison statement has been provided for
those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on Statements 3 through 5 of this
report.
Proprietary funds. The City maintains three enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business -type activities
in the government -wide financial statements.
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 the following funds:
• Water
• Sewer
• Surface Water Management
The basic proprietary fund financial statements can be found on Statements 6 through 8 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial
statements because the resources of those funds are not available to support the City's own
programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statement can be found on Statement 9 of this report.
17
Management's Discussion and Analysis
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 can be found following Statement 9 of this report.
Other information. The combining statements referred to earlier in connection with non -major
governmental funds are presented immediately following the required supplementary
information on budgetary comparisons. Combining and individual fund fmancial statements and
schedules can be found on Statement 11 through 22 of this report.
Government -Fide Financial Analysis
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. Assets exceeded liabilities by $158,742,770 at the close of the most recent fiscal year.
The largest portion of the City's net position ($123,802,397 or 78 %) reflects its net investment in
capital assets (e.g. land, buildings, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City's investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
City of Chanhassen, Minnesota's Net Position
18
Governmental Activities
Business -Type
Activities
Totals
2013
2012
2013
2012
2013
2012
Assets:
Current and other assets
$28,120,653
$27,208,308
$17,060,623
$20,416,343
$45,181,276
$47,624,651
Capital assets
86,805,310
87,088,564
64,073,290
65,937,352
150,878,600
153,025,916
Total assets
$114,925,963
$114,296,872
$81,133,913
$86,353,695
$196,059,876
$200,650,567
Liabilities:
Long -term liabilities outstanding
$16,894,021
$18,515,680
$16,485,291
$20,716,169
$33,379,312
$39,231,849
Other liabilities
3,221,961
2,528,315
715,833
530,831
3,937,794
3,059,146
Total liabilities
$20,115,982
$21,043,995
$17,201,124
$21,247,000
$37,317,106
$42,290,995
Net position:
Net investment in capital assets
$71,260,946
$69,987,563
$52,541,451
$54,475,353
$123,802,397
$124,462,916
Restricted
9,824,330
8,721,203
-
-
9,824,330
8,721,203
Unrestricted
13,724,705
14,544,111
11,391,338
10,631,342
25,116,043
25,175,453
Total net position
$94,809,981
$93,252,877
$63,932,789
$65,106,695
$158,742,770
$158,359,572
18
Management's Discussion and Analysis
$9,824,330 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 ($25,116,043) may
be used to meet 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, both for the City as a whole, as well as for its separate governmental
and business -type activities.
Governmental Activities
Total net position of the governmental activities increased $1,557,104, or 2 %. The components
of net position increased or decreased as follows:
• Net investment in capital assets increased $1,273,383 due to payments made on debt
related to capital assets.
• Restricted net position increased $1,103,127. This increase is primarily due to the
collection of large assessments that had previously been deferred until development
occurs. In addition, there were smaller increases in fund balance of the City's tax
increment funds.
• Unrestricted net position decreased $819,406. The majority of this decrease is due to
expenses related to the 2013 Street Reconstruction project, which will not be capitalized
due to the maintenance nature of the project.
19
Management's Discussion and Analysis
Business -Type Activities
The net position of the City's business -type activities decreased by $1,173,906, or 2 %. Net
investment in capital assets decreased $1,933,902 because depreciation expense exceeded capital
asset additions and the disposal of the utility billing radio read asset which still had some
remaining undepreciated balance. Unrestricted net position increased $759,996, due primarily to
an increase in connection charges from increased development.
City of Chanhassen, Minnesota's Changes in Net Position
20
Governmental Activities
Business -Type
Activities
Totals
2013
2012
2013
2012
2013
2012
Revenues:
Program revenues:
Charges for services
$3,609,822
$3,109,711
$5,803,976
$6,171,579
$9,413,798
$9,281,290
Operating grants and contributions
472,298
404,663
63,112
121,925
535,410
526,588
Capital grants and contributions
10,718,999
2,953,496
2,852,437
1,861,689
13,571,436
4,815,185
General revenues:
Property taxes
10,059,324
10,064,176
-
-
10,059,324
10,064,176
Tax increment collections
545,906
533,011
545,906
533,011
Cants and contributions not
restricted to specific programs
19,941
20,071
-
-
19,941
20,071
Unrestricted investment earnings
(14,764)
173,523
(776)
92,453
(15,540)
265,976
Special item- sale ofpublic works building
-
1,246,275
-
-
-
1,246,275
Gain on sale ofcapital assets
37,720
56,610
-
-
37,720
56,610
Total revenues
25,449,246
18,561,536
8,718,749
8,247,646
34,167,995
26,809,182
Expenses:
General government
2,630,405
2,690,853
-
-
2,630,405
2,690,853
Public safety
3,313,694
3,176,441
3,313,694
3,176,441
Public works
14,224,453
7,743,147
14,224,453
7,743,147
Parks and recreation
2,919,183
3,114,340
2,919,183
3,114,340
Community development
523,651
646,262
523,651
646,262
Interest on long -term debt
588,352
725,881
588,352
725,881
Water
-
-
4,702,686
3,646,787
4,702,686
3,646,787
Sewer
3,548,200
3,235,324
3,548,200
3,235,324
Surface water management
1,334,173
1,347,345
1,334,173
1,347,345
Total expenses
24,199,738
18,096,924
9,585,059
8,229,456
33,784,797
26,326,380
Increase (decrease) in net position before transfers
1,249,508
464,612
(866,310)
18,190
383,198
482,802
Transfers
307,596
(173,420)
(307,596)
173,420
-
Change in net position
1,557,104
291,192
(1,173,906)
191,610
383,198
482,802
Net position - beginning
93,252,877
92,961,685
65,106,695
64,915,085
158,359,572
157,876,770
Netposition - ending
$94,809,981
$93,252,877
$63,932,789
$65,106,695
$158,742,770
$158,359,572
20
Management's Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities increased by $6,887,710, or 37 %. Capital grants and
contributions increased by $7,765,503 from 2012 due to state and federal grant funds being
received for the TH101 — Lyman Blvd to Pioneer Trail project.
Expenses
Expenses for the governmental activities increased by $6,102,814, or 34 %. The increase is
largely due to the same project noted above that had approximately $6.1 million in expenses, the
majority of which were funded by other participating agencies.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
Governmental Activities - Revenues
Property taxes
Capital grants and 39.5%
contributions
42.1%
Tax increment collections
2.1%
Operating grants and
contributions
1.9% Charges for services Other
14.2% 0.1%
21
Management's Discussion and Analysis
Interest on long -term debt
Community development 2.4% Governmental Activities - Expenses
2.2%
General government
Parks and recreation 10.9%
12.1%
i
Public safety
13.6%
Public works
58.8%
Business —Type Activities
Revenues
Revenues for the business -type activities increased by $471,103, or 6 %, as noted earlier
connection charges increased by approximately $470,000 due to increased development in the
City in 2013.
Expenses
Expenses for business -type activities increased by $1,355,603, or 16 %. The majority of the
increase was due to the purchase and installation of new radio read units for the City's utility
billing system.
22
Management's Discussion and Analysis
Below are specific graphs showing the business -type activities revenue and expense
comparisons:
Capital grants and contributions Business -Type Activities - Revenue
32.7%
Charges for services
Operating grants and 66.6%
contributions
0.7%
Surface water management
13.9%
Business -Type Activities - Expenses
Water
49.1%
Sewer
37.0%
23
Management's Discussion and Analysis
Financial Analysis of the Government's Funds
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, unrestricted fund balance may serve
as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $21,606,400. Approximately 42% of this total amount ($9,181,230) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $1,343,809 of fund balance is not in a spendable form, $6,366,292
has been assigned, and $4,715,069 is unassigned.
The General Fund decreased by $200,453 in 2013. The decrease in fund balance was
attributable to the transfer out of the 2012 operating surplus, which exceeded the 2013 operating
surplus by approximately $200,000.
The 2009A G.O. Refunding Bonds debt service fund increased by $2,365,428 due to developing
properties in the area paying large deferred assessments.
The Revolving Assessment Fund decreased by $618,593. The majority of the decrease is due to
the final payment of the loan for the 2010 Audubon Road Reconstruction project. There is
approximately $500,000 in remaining scheduled levy dollars that will be used to reimburse this
final payment.
The THIN Improvements — Lyman to Pioneer Fund increased $483,952 due to transfers in from
the City's utility funds for reimbursement of costs related to utility improvements for this
proj ect.
The nonmajor special revenue funds decreased by $723,809 in 2013. This decrease was
primarily due to the final payment made by the City's EDA for the 2010 Audubon Road
Reconstruction project.
The nonmajor debt service funds increased by $122,468 in 2013. There were no significant
items that accounted for this increase.
The nonmajor capital project funds increased by $868,517. This increase was partly due to
additional tax increment receipts that exceeded related expenses (the largest district will be
closed in 2014). In addition, City Council transferred $150,000 in General Fund surplus from
2012 into the Capital Replacement Fund for the intended construction of several park shelters
throughout the City.
24
Management's Discussion and Analysis
Proprietary funds. The City's proprietary funds provide the same type of information found in
the government -wide financial statements, but in more detail.
The unrestricted net position in the respective proprietary funds is $6,428,603 (Water),
$3,962,198 (Sewer) and $1,000,537 (Surface Water Management). The Water, Sewer and
Surface Water Management Funds each had a decrease in net position in 2013 of $490,887,
$634,620 and $48,399, respectively.
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2013.
Budgetary Variances — Revenues
The positive General Fund revenue variance of $401,079 was mostly due to building permit
revenues in excess of anticipated collections.
Budgetary Variances — Expenses
Expenses for the General Fund had a positive variance of $16,387. The variance was less than
.2% of the entire General Fund budget.
25
Management's Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business -type
activities as of December 31, 2013, amounts to $150,878,600 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, infrastructure, machinery, and
equipment.
City of Chanhassen, Minnesota's Capital Assets
(Net of Depreciation)
26
Beginning
Ending
Primary Government
Balance
Increase
Decrease
Balance
Governmental activities:
Capital assets not being depreciated:
Land
$19,631,489
$161,300
$ -
$19,792,789
Construction in progress
2,502,939
1,698,800
(2,240,562)
1,961,177
Permanent easements
539,918
382,752
922,670
Total capital assets not being depreciated
22,674,346
2,242,852
(2,240,562)
22,676,636
Capital assets being depreciated:
Buildings and structures
22,832,191
26,568
-
22,858,759
Machinery and equipment
8,022,468
496,881
(210,462)
8,308,887
Other improvements
5,800,369
880,366
6,680,735
Temporary easements
22,782
931
(10,782)
12,931
Infrastructure
109,461,432
3,378,906
(176,092)
112,664,246
Total capitalassets being depreciated
146,139,242
4,783,652
(397,336)
150,525,558
Less accumulated depreciation for:
Buildings and structures
5,590,393
558,871
6,149,264
Machinery and equipment
5,443,433
455,745
(177,823)
5,721,355
Other improvements
2,422,773
246,553
2,669,326
Temporary easements
5,406
11,393
(10,782)
6,017
Infrastructure
68,263,019
3,763,115
(175,212)
71,850,922
Total accumulated depreciation
81,725,024
5,035,677
(363,817)
86,396,884
Governmental activities capital assets -net
$87,088,564
$1,990,827
($2,274,081)
$86,805,310
26
Management's Discussion and Analysis
Business -type activities capital assets -net 65,937,352 (60,971) (1,803,091) 64,073,290
Total capital assets - net $153,025,916 $1,929,856 ($4,077,172) $150,878,600
Additional information on the City's capital assets can be found in Note 5.
Governmental Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Business -Type Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions), as well as the disposal of the utility billing radio reading devices discussed earlier.
Long -term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $32,404,287, a decrease of $5,844,026 from 2012. The majority of the decrease
was due to the City advance refunding $3.6 million of the 2005B GO Water Improvement Bond.
In 2013, the escrow account was used to make the final principal payment on the old issuance.
The remaining decrease was due to current year scheduled payments.
The balance of the bonds payable outstanding is comprised of $10,155,000 in general obligation
bonds, $5,220,000 for special assessment debt which is supported in part by special assessments,
$16,170,000 of revenue bonds which financed capital investments for the water, sewer, and
surface water management operations, $705,000 in tax increment bonds and an unamortized
bond premium of $154,287.
Additional long -term debt in the amount of $955,237 for compensated absences was also
outstanding at the end of 2013.
O►a►I
Beginning
Fording
Primary Government
Balance
Increase
Decrease
Balance
Business -type activities:
Capital assets not being depreciated:
Land
$1,997,435
$75200
$ -
$2,072,635
Construction in progress
2,984,240
898,921
(1,184,345)
2,698,816
Permanent easements
398,564
436,919
835,483
Total capital assets not being depreciated
5,380,239
1,411,040
(1,184,345)
5,606,934
Capital assets being depreciated:
Buildings and structures
12,445,429
-
12,445,429
Machinery and equipment
2,582,579
160,083
(1,322,965)
1,419,697
Temporary easements
34,728
-
34,728
Other improvements
100,130,331
1,607,048
(125,447)
101,611,932
Total capital assets being depreciated
115,193,067
1,767,131
(1,448,412)
115,511,786
Less accumulated depreciation for:
Buildings and structures
1,245,245
248,918
1,494,163
Machinery and equipment
1,546,818
81,573
(704,219)
924,172
Temporary easements
17,412
17,316
-
34,728
Other improvements
51,826,479
2,891,335
(125,447)
54,592,367
Total accumulated depreciation
54,635,954
3,239,142
(829,666)
57,045,430
Business -type activities capital assets -net 65,937,352 (60,971) (1,803,091) 64,073,290
Total capital assets - net $153,025,916 $1,929,856 ($4,077,172) $150,878,600
Additional information on the City's capital assets can be found in Note 5.
Governmental Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions).
Business -Type Activities Capital Assets. There was a decrease in capital assets due to the
reduction in depreciable assets (current year depreciation expense exceeded current year
additions), as well as the disposal of the utility billing radio reading devices discussed earlier.
Long -term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $32,404,287, a decrease of $5,844,026 from 2012. The majority of the decrease
was due to the City advance refunding $3.6 million of the 2005B GO Water Improvement Bond.
In 2013, the escrow account was used to make the final principal payment on the old issuance.
The remaining decrease was due to current year scheduled payments.
The balance of the bonds payable outstanding is comprised of $10,155,000 in general obligation
bonds, $5,220,000 for special assessment debt which is supported in part by special assessments,
$16,170,000 of revenue bonds which financed capital investments for the water, sewer, and
surface water management operations, $705,000 in tax increment bonds and an unamortized
bond premium of $154,287.
Additional long -term debt in the amount of $955,237 for compensated absences was also
outstanding at the end of 2013.
O►a►I
Management's Discussion and Analysis
City of Chanhassen, Minnesota's Outstanding Debt
Governmental Activities Business -Type Activities Totals
2013 2012 2013 2012 2013 2012
General obligation bonds
$10,155,000
$10,705,000
$ -
$ -
$10,155,000
$10,705,000
Revenue bonds
-
-
16,170,000
20,410,000
16,170,000
20,410,000
Tax increment bonds
705,000
775,000
-
-
705,000
775,000
General improvement bonds
5,220,000
6,190,000
-
-
5,220,000
6,190,000
Bond premium
-
-
154,287
168,313
154,287
168,313
Compensated absences
794,233
830,144
161,004
137,856
955,237
968,000
Total
$16,874,233
$18,500,144
516,485,291
$20,716,169
$33,359,524
$39,216,313
The City did not issue debt in 2013. However as the financial statements will indicate, the City
maintained strong financial reserves and continues its practice of utilizing multiple long term
financial planning documents. The City's bond rating had previously been reaffirmed in 2012 by
Standard & Poor's when the City issued the G.O. Water and Sewer Revenue Bonds of 2012A.
The City of Chanhassen is one of approximately 15 communities in the State of Minnesota to
have an AAA bond rating from either Standard & Poor's or Moody's.
State statutes limit the amount of general obligation debt a Minnesota city may issue to 3% of the
total estimated market value. The current debt limitation for the City is $93,542,001. Of the
City's outstanding debt, $8,705,958 is counted within the statutory limitation.
Additional information on the City's long -term debt can be found in Note 6.
Requests for Information. This financial report is designed to provide a general overview of
the City of Chanhassen, Minnesota's finances for all those with an interest in the government's
finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Director of Finance, 7700 Market
Boulevard, P.O. Box 147, Chanhassen, Minnesota 55317.
28
BASIC FINANCIAL STATEMENTS
29
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30
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2013
With Comparative Totals For December 31, 2012
Assets:
Cash and investments
Cash with escrow agent
Restricted cash
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Inventories - at cost
Internal balances
Contract for deed receivable
Special assessments receivable
Capital assets (net of accumulated depreciation):
Nondepreciable
Depreciable
Total assets
Liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Unearned revenue
Compensated absences payable:
Due within one year
Due in more than one year
Other post employment benefits payable:
Due in more than one year
Bonds payable:
Due within one year
Due in more than one year
Total liabilities
Net position:
Net investment in capital assets
Restricted for:
Debt service
Park improvements
Tax increment purposes
Other purposes
Unrestricted
Total net position
Statement 1
Primary Government
Governmental
Business -Type
Totals
28,100,095
Activities
Activities
2013
2012
$21,158,901
$11,505,083
$32,663,984
$29,044,357
-
3,670,439
3,670,439
7,114,653
-
-
-
1,848,326
73,549
44,789
118,338
112,489
2,267,115
13,161
2,280,276
743,441
180,983
1,107,329
1,288,312
1,310,249
154,009
-
154,009
277,975
16,741
1,572
18,313
205,123
-
45,277
45,277
24,006
(559,515)
559,515
-
-
1,372,668
-
1,372,668
1,416,079
3,456,202
113,458
3,569,660
5,527,953
22,676,636
5,606,934
28,283,570
28,100,095
64,128,674
58,466,356
122,595,030
124,925,821
114,925,963
81,133,913
196,059,876
200,650,567
549,212
96,991
646,203
472,604
27,927
107,028
134,955
753,496
139,443
27,956
167,399
151,584
1,017,910
256,908
1,274,818
327,228
241,736
178,493
420,229
491,415
1,245,733
48,457
1,294,190
862,819
54,836
11,116
65,952
41,134
739,397
149,888
889,285
926,866
19,788
-
19,788
15,536
4,190,000
4,704,026
8,894,026
5,844,026
11, 890,000
11, 620,261
23, 510,261
32,404,287
20,115,982
17,201,124
37,317,106
42,290,995
71,260,946
52,541,451
123,802,397
124,462,916
6,595,927
-
6,595,927
5,905,553
1,714,972
-
1,714,972
1,650,118
1,347,593
-
1,347,593
1,022,785
165,838
-
165,838
142,747
13,724,705
11,391,338
25,116,043
25,175,453
$94,809,981
$63,932,789
$158,742,770
$158,359,572
The accompanying notes are an integral part of these financial statements.
31
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest and fees on long -term debt
Total governmental activities
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities
Total primary government
4,702,686
3,548,200
1,334,173
9,585,059
$33,784,797
The accompanying notes are an integral part of these financial statements.
32
2,829,226
2,358,854
615,896
5,803,976
$9,413,798
Charges For
Expenses
Services
$2,630,405
$512,301
3,313,694
1,390,473
14,224,453
440,663
2,919,183
1,228,802
523,651
37,583
588,352
-
24,199,738
3,609,822
4,702,686
3,548,200
1,334,173
9,585,059
$33,784,797
The accompanying notes are an integral part of these financial statements.
32
2,829,226
2,358,854
615,896
5,803,976
$9,413,798
Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
$600
352,973
100,000
18,725
472,298
Statement 2
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business -Type Totals
Activities Activities 2013 2012
$ - ($2,117,504)
(1,570,248)
10,718,999 (2,964,791)
- (1,671,656)
(486,068)
- (588,352)
10,718,999 (9,398,619)
0
($2,117,504)
($2,134,041)
(1,570,248)
(1,490,644)
(2,964,791)
(4,259,165)
(1,671,656)
(2,398,125)
(486,068)
(621,198)
(588,352)
(725,881)
(9,398,619)
(11,629,054)
1,297
1,501,349
- (370,814)
(370,814)
571,463
-
677,695
- (511,651)
(511,651)
(295,127)
61,815
673,393
- 16,931
16,931
(350,599)
63,112
2,852,437
0 (865,534)
(865,534)
(74,263)
$535,410
$13,571,436
(9,398,619) (865,534)
(10,264,153)
(11,703,317)
General revenues:
General property taxes
Tax increment collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on sale of capital assets
Special item - sale of public works building
Transfers
Total general revenues, special item
and transfers
Change in net position
Net position - January 1
Net position - December 31
10,059,324 -
545,906 -
19,941 -
(14,764) (776)
37,720 -
307,596 (307,596)
10,059,324
10,064,176
545,906
533,011
19,941
20,071
(15,540)
265,976
37,720
56,610
-
1,246,275
10,955,723 (308,372) 10,647,351 12,186,119
1,557,104 (1,173,906) 383,198 482,802
93,252,877 65,106,695 158,359,572 157,876,770
$94,809,981 $63,932,789 $158,742,770 $158,359,572
The accompanying notes are an integral part of these financial statements.
33
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34
CITY OF CHANHASSEN, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
$21,606,400
$19,308,890
Amounts reported for governmental activities in the statement of net position are different because:
Nonspendable
Statement 3
- 1,327,068
1,343,809
368 2009A
601
604 TH101
- 4,688,037
9,181,230
6,359,422
Assigned
- - 2,167,054
G.O.
Revolving
Improvements
Unassigned
5,274,584 - -
- (559,515)
4,715,069
General
Refunding
Assessment
- Lyman to
Other Gov-VI
19,308,890
Total liabilities, deferred inflows
Fund
Bonds
Fund
Pioneer
Funds
Totals Governmental Funds
Assets:
$27,855,164
2013
2012
Cash and investments
$5,430,010
$4,478,332
$2,132,458
$920,356
$8,197,745
$21,158,901
$19,746,734
Accrued interest receivable
19,619
10,843
10,082
2,937
30,068
73,549
68,853
Due from other governmental units
43,873
-
104,270
1,242,231
876,741
2,267,115
714,239
Accounts receivable - net
69,466
-
2,409
-
109,108
180,983
145,956
Property taxes receivable
134,529
3,738
888
-
14,854
154,009
277,975
Prepaid items
16,741
-
-
-
-
16,741
57,600
Contract for deed receivable
-
-
-
-
1,372,668
1,372,668
1,416,079
Special assessments receivable
1,296
885,116
1,864,071
-
705,719
3,456,202
5,427,728
Total assets
$5,715,534
$5,378,029
$4,114,178
$2,165,524
$11,306,903
$28,680,168
$27,855,164
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable
$136,132
$ -
$30,122
$196,288
$186,670
$549,212
$377,583
Due to other governmental units
24,522
-
-
2,274
1,131
27,927
699,931
Salaries payable
137,008
-
-
-
2,435
139,443
127,440
Contracts payable
-
-
57,360
799,608
160,942
1,017,910
207,671
Interfund loan payable
-
-
-
-
559,515
559,515
646,856
Unearned revenue
43,307
-
-
675,977
526,449
1,245,733
862,819
Total liabilities
340,969
0
87,482
1,674,147
1,437,142
3,539,740
2,922,300
Deferred inflows of resources:
Unavailable revenue
83,240
884,836
1,859,642
-
706,310
3,534,028
5,623,974
Fund balances:
$21,606,400
$19,308,890
Amounts reported for governmental activities in the statement of net position are different because:
Nonspendable
16,741 - -
- 1,327,068
1,343,809
1,430,283
Restricted
- 4,493,193 -
- 4,688,037
9,181,230
6,359,422
Assigned
- - 2,167,054
491,377 3,707,861
6,366,292
6,731,400
Unassigned
5,274,584 - -
- (559,515)
4,715,069
4,787,785
Total fund balances
5,291,325 4,493,193 2,167,054
491,377 9,163,451
21,606,400
19,308,890
Total liabilities, deferred inflows
of resources, and fund balances
$5,715,534 $5,378,029 $4,114,178
$2,165,524 $11,306,903
$28,680,168
$27,855,164
Fund balance reported above
$21,606,400
$19,308,890
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported in the funds.
86,805,310
87,088,564
Other long -term assets are not available to pay for current period expenditures and therefore are
reported as unavailabe revenue in the funds.
3,534,028
5,623,974
Long -term liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds.
(17,135,757) (18,768,551)
Net position of governmental activities
$94,809,981
$93,252,877
The accompanying notes are an integral part of these financial statements.
35
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
Net change in fair value of investments
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Special item: Sale of old public works building
Net change in fund balance
Fund balance - January 1
General Fund
$7,457,293
1,324,770
359,080
623,044
99,984
44,959
(50,077)
19,645
83,081
186,700
10,148,479
368 2009A G.O.
Refunding Bonds
$550,000
2,174,645
28,509
(27,676)
601 Revolving
Assessment Fund
$130,680
104,270
863,490
28,033
(25,735)
2,725,478 1,100,738
1,950,343 - -
3,070,974 - -
2,336,951 - 2,115,790
1,958,624 - -
414,121 -
244,034
- 208,881
200,000 770,000
- 160,050 4,620
9,731,013 360,050 3,343,325
417,466 2,365,428 (2,242,587)
(617,919)
(617,919)
0
(200,453) 2,365,428
1,732,707
(108,713)
1,623,994
(618,593)
5,491,778 2,127,765 2,785,647
Fund balance - December 31 $5,291,325 $4,493,193 $2,167,054
The accompanying notes are an integral part of these financial statements.
36
Statement 4
604 TH101
Improvements - Intra Activity
Lyman to Pioneer Other Govt'l Funds Eliminations Totals Governmental Funds
2013
6,122,566
6,648
(7,496)
6,121,718
$2,038,510
545,906
789,000
1,385,423
154,943
284,370
64,815
(76,744)
13,514
152,282
73,003
5,425,022
0
$10,176,483
545,906
2,113,770
7,971,339
3,193,078
907,414
99,984
172,964
(187,728)
33,159
235,363
259,703
25,521,435
2012
$10,143,011
533,011
1,595,358
2,151,785
1,667,881
880,920
119,997
218,669
(45,146)
36,893
253,030
264,038
17,819,447
- 324,297
- 2,274,640
2,326,490
- 108,472
- 3,179,446
3,013,980
5,745,780 429,619
- 10,628,140
3,726,158
- 43,980
- 2,002,604
2,154,714
- 108,417
- 522,538
642,403
- 87,707
- 87,707
75,226
- 74,144
- 74,144
39,314
355,842 1,882,852
- 2,482,728
3,502,371
- 418,333
- 627,214
1,310,366
6,101,622
20,096
463,856
463,856
483,952
7,425
$491,377
620,000 - 1,590,000
434,817 - 599,487
4,532,638 0 24,068,648
892,384 0 1,452,787
627,734
(1,935,586)
888,711
(1,252,942)
1,935,586
(43,988)
(625,208)
0
844,723
267,176
0
2,297,510
8,896,275
-
19,308,890
$9,163,451
$0
$21,606,400
The accompanying notes are an integral part of these financial statements.
37
5,100,000
814,621
22,705,643
(4,886,196)
1,203,031
(48,881)
1,154,150
1,475,000
(2,257,046)
21,565,936
$19,308,890
CITY OF CHANHASSEN, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Amounts reported for governmental activities in the
statement of activities (Statement 2) are different because:
Net changes in fund balances - total governmental funds (Statement 4)
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 differ from depreciation in the current period.
The net effect of various miscellaneous transactions involving capital assets
(i.e. sales, trade -ins and donations) is to increase (decrease) net position.
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
The issuance of long -term debt (e.g., bonds, leases) provides current financial
resources to governmental funds, while the repayment of the principal of
long -term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. This amount is the
net effect of these differences in the treatment of long -term debt and related items.
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.
Change in net position of governmental activities (Statement 2)
Statement 5
2013 2012
$2,297,510 ($2,257,046)
(1,763,884) (170,882)
1,480,630 (1,628,719)
(2,089,946) (796,184)
1,590,000 5,100,000
42,794 44,023
$1,557,104 $291,192
The accompanying notes are an integral part of these financial statements.
38
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Assets:
Current assets:
Cash and cash equivalents
Cash with escrow agent
Restricted cash
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Prepaid items
Water meter inventory
Interfund loan receivable
Special assessments receivable
Connection charges receivable
Total current assets
Noncurrent assets:
Capital assets:
Land
Easements
Buildings and structures
Machinery and equipment
Other improvements
Construction in progress
Total capital assets
Less: Allowance for depreciation
Net capital assets
Total assets
Liabilities:
Current liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Accrued interest payable
Unearned revenue
Compensated absences payable - due within one year
Bonds payable - due within one year
Total current liabilities
Noncurrent liabilities:
Compensated absences payable -
due in more than one year
Bonds payable - due in more than one year
Total noncurrent liabilities
Total liabilities
Net position:
Net investment in capital assets
Unrestricted
Total net position
Statement 6
Water
Sewer
Surface Water
Management
Totals
1,997,435
383,497
243,357
243,357
2013
2012
$6,212,497
$4,312,516
$980,070
$11,505,083
$9,297,623
3,670,439
-
-
3,670,439
7,114,653
-
-
-
-
1,848,326
23,198
18,298
3,293
44,789
43,636
488
195
12,478
13,161
29,202
510,607
454,769
141,953
1,107,329
1,164,293
662
662
248
1,572
147,523
45,277
-
-
45,277
24,006
559,515
-
-
559,515
646,856
19,626
16,695
-
36,321
19,155
58,125
19,012
-
77,137
81,070
11,100,434
4,822,147
1,138,042
17,060,623
20,416,343
1,370,974
145,550
556,111
2,072,635
1,997,435
383,497
243,357
243,357
870,211
433,292
12,445,429
-
-
12,445,429
12,445,429
759,956
641,758
17,983
1,419,697
2,582,579
43,410,145
32,834,326
25,367,461
101,611,932
100,130,331
2,535,807
96,561
66,448
2,698,816
2,984,240
60,905,808
33,961,552
26,251,360
121,118,720
120,573,306
(24,229,354) (20,265,485)
(12,550,591)
(57,045,430)
(54,635,954)
36,676,454
13,696,067
13,700,769
64,073,290
65,937,352
47,776,888
18,518,214
14,838,811
81,133,913
86,353,695
37,396
33,542
26,053
96,991
95,021
4,563
102,465
-
107,028
53,565
13,262
9,406
5,288
27,956
24,144
200,943
28,391
27,574
256,908
119,557
175,516
2,977
-
178,493
238,544
-
-
48,457
48,457
-
4,847
4,189
2,080
11,116
5,858
4,646,526
57,500
-
4,704,026
4,254,026
5,083,053
238,470
109,452
5,430,975
4,790,715
65,356
56,479
28,053
149,888
131,998
11,055,261
565,000
-
11,620,261
16,324,287
11,120,617
621,479
28,053
11,770,149
16,456,285
16,203,670
859,949
137,505
17,201,124
21,247,000
25,144,615
13,696,067
13,700,769
52,541,451
54,475,353
6,428,603
3,962,198
1,000,537
11,391,338
10,631,342
$31,573,218
$17,658,265
$14,701,306
$63,932,789
$65,106,695
The accompanying notes are an integral part of these financial statements.
39
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 7
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Operating revenues:
Charges for services
Penalties and other
Total operating revenues
Operating expenses:
Personal services
Materials and supplies
Contractual services:
MCES
Other
Repairs and maintenance
Depreciation
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment earnings
Net change in fair value of investments
Intergovernmental
Refunds and reimbursements
Interest and fiscal charges
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income before contributions and transfers
Transfer in
Transfer out
Capital contributions:
Contributions of capital assets
Special assessments
Connection charges
Total contributions and transfers
Change in net position
Net position - January 1
Surface
Water
Water Sewer Management
Totals
2013 2012
$2,686,153
$2,299,500
$589,506
$5,575,159
$5,936,568
131,929
56,556
14,177
202,662
211,864
2,818,082
2,356,056
603,683
5,777,821
6,148,432
43,370
27,462
-
70,832
21,397
580,212
358,461
243,851
1,182,524
1,156,360
262,411
53,879
33,941
350,231
326,283
-
1,398,891
-
1,398,891
1,506,629
959,279
677,648
254,617
1,891,544
923,996
226,206
115,647
369
342,222
464,384
1,501,454
936,293
801,395
3,239,142
3,243,725
3,529,562
3,540,819
1,334,173
8,404,554
7,621,377
(711,480)
(1,184,763)
(730,490)
(2,626,733)
(1,472,945)
63,808
42,991
6,750
113,549
121,065
(59,213)
(46,705)
(8,407)
(114,325)
(28,612)
1,297
-
61,815
63,112
121,925
11,144
2,798
12,213
26,155
23,147
(554,378)
(7,381)
-
(561,759)
(605,703)
(618,746)
-
-
(618,746)
(2,376)
(1,156,088)
(8,297)
72,371
(1,092,014)
(370,554)
(1,867,568) (1,193,060) (658,119) (3,718,747) (1,843,499)
43,988
-
-
43,988
48,881
(502,586)
(195,597)
(190,528)
(888,711)
(1,203,031)
544,212
342,184
331,142
1,217,538
1,537,227
43,370
27,462
-
70,832
21,397
1,247,697
384,391
469,106
2,101,194
1,630,635
1,376,681
558,440
609,720
2,544,841
2,035,109
(490,887)
(634,620)
(48,399)
(1,173,906)
191,610
32,064,105
18,292,885
14,749,705
65,106,695
64,915,085
Net position - December 31 $31,573,218
$17,658,265 $14,701,306 $63,932,789
$65,106,695
Capital
Transfers -
Contributions
Net
Amounts reported above
$3,389,564
($844,723)
Amounts reported for business -type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities
(537,127)
537,127
Amounts reported on the statement of activities
$2,852,437
($307,596)
The accompanying notes are an integral part of these financial statements.
40
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Cash flows from operating activities:
Statement 8
Surface Water
Water Sewer Management Totals
2013 2012
Receipts from customers and users
$2,890,614
$2,372,617
$587,595
$5,850,826
$6,086,403
Payment to suppliers
(1,468,131)
(2,173,584)
(293,799)
(3,935,514)
(3,108,336)
Payment to employees
(565,897)
(350,698)
(238,969)
(1,155,564)
(1,136,653)
Miscellaneous revenue
12,441
2,798
122,485
137,724
145,072
Net cash flows provided by operating activities
869,027
(148,867)
177,312
897,472
1,986,486
Cash flows from noncapital financing activities:
Transfers in
Transfers out
Decrease in interfund loan receivable
Net cash flows provided by (used in)
noncapital financing activities
Cash flows from capital and related financing activities:
Acquisition of capital assets
Connection charges
Special assessment revenue
Proceeds from debt
Principal paid on bonds
Interest and fiscal charges
Net cash flows provided by (used in) capital
and related financing activities
Cash flows from investing activities:
Investment earnings
Net (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss)
to net cash flows from operating activities:
Miscellaneous revenue (expense)
Noncash repair and maintenance expense
Depreciation
Changes in assets and liabilities:
Decrease (increase) in receivables
Decrease in prepaid items
Decrease (increase) in inventory
Increase (decrease) in payables
Total adjustments
Net cash provided by operating activities
43,988 - - 43,988 48,881
(502,586) (195,597) (190,528) (888,711) (1,203,031)
87,341 - - 87,341 82,397
(371,257) (195,597) (190,528) (75282) (1,071,753)
(431,049)
(100,516)
(107,372) (638,937)
(1,469,229)
1,245,811
390,210
469,106 2,105,127
1,679,516
42,899
10,767
- 53,666
33,907
-
-
- -
1,245,000
(4,240,000)
-
- (4,240,000)
(730,000)
(497,791)
(5,306)
- (503,097)
(584,304)
(3,880,130) 295,155 361,734 (3,223,241) 174,890
5,140
(5,991)
(1,078)
(1,929)
83,320
(3,377,220)
(55,300)
347,440
(3,085,080)
1,172,943
13,260,156
4,367,816
632,630
18,260,602
17,087,659
$9,882,936
$4,312,516
$980,070
$15,175,522
$18,260,602
($711,480) ($1,184,763) ($730,490) ($2,626,733) ($1,472,945)
12,441
2,798
122,485
13 7, 724
145,072
-
-
-
-
69,285
1,501,454
936,293
801,395
3,239,142
3,243,725
72,532
16,561
(16,088)
73,005
(62,029)
6,212
4,152
2,848
13,212
(12,825)
(21,271)
-
-
(21,271)
1,679
9,139
76,092
(2,838)
82,393
74,524
1,580,507
1,035,896
907,802
3,524,205
3,459,431
$869,027
($148,867)
$177,312
$897,472
$1,986,486
Noncash investing, capital and financing activities:
Capital assets in the amount of $544,212 and $576,048 were contributed to the Water Fund in 2013 and 2012, respectively.
Capital assets in the amount of $342,184 and $355,014 were contributed to the Sewer Fund in 2013 and 2012, respectively.
Capital assets in the amount of $331,142 and $606,165 were contributed to the Surface Water Fund in 2013 and 2012, respectively.
The accompanying notes are an integral part of these financial statements.
41
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Assets:
Statement 9
Agency Funds
2013 2012
Cash and investments $1,426,193 $1,093,722
Liabilities:
Escrow deposits payable $1,426,193 $1,093,722
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
A. FINANCIAL REPORTING ENTITY
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
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
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component unit have been included in the financial report as a blended
component unit.
Pursuant to the authorization of Minnesota Statutes Section 469.094, on April 28, 1997 the City
transferred to the Economic Development Authority of the City all activities, programs,
operations, and authority of the existing City Housing and Redevelopment Authority (HRA). The
Economic Development Authority (EDA), an entity legally separate from the City, is governed by
a board which is substantially the same as the City Council. The City is in a relationship of
financial benefit or burden with the EDA. Separate financial statements for the EDA are not
prepared.
JOINTLY GOVERNED ORGANIZATIONS
Southwest Area Transit Commission. The City, in conjunction with the Cities of Eden Prairie and
Chaska, has agreed to establish the Southwest Area Transit Commission (the Commission). The
purpose of the Commission is to provide alternative methods of public transit service to the three
cities. The Commission's board is composed of two commissioners from each of the cities.
Western Area Fire Training Association ( WAFTA). The City is a member of a joint powers
group along with ten other communities. WAFTA operates a fire training facility in western
Carver County.
JOINT POWERS AGREEMENT
The Chanhassen Recreation Center is owned by Independent School District No. 112 and operates
under a joint powers agreement between the City and the School District. The ninety-nine year
agreement expires in 2093. According to the terms of the agreement, the City reimburses the
School District 24% of the cost to operate and maintain the facility.
43
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the statement of net position and the statement of
changes in net position) report information on all of the nonfiduciary activities of the primary
government 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
business -type activity, are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business -type activity and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or business -type
activity. Taxes and other items not included among program revenues are reported instead of general
revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the government -wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
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. The City's only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers all revenues, except reimbursement grants, to be available if they
are collected within 60 days of the end of the current fiscal period. Reimbursement grants are
considered available if they are collected within one year 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.
44
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. Only the portion of special assessments
receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of
the current period. All other revenue items are considered to be measurable and available only when
cash is received by the City.
The City reports the following major governmental funds:
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.
2009A General Obligation Improvement Bond Fund (368) accounts for the accumulation of
resources for payment of the general obligation bonds issued to finance utility improvements.
Revolving Assessment Fund (601) accounts for the City's annual street re- construction program.
The individual property owner will pay a portion of the cost of the annual project with
assessments and the City will fund their portion with the reserves created in this fund and an
annual tax levy in future years.
TH101 Improvements — Lyman to Pioneer Fund (604) accounts for the funding sources and costs
of the Trunk Highway 101 improvement project, which includes widening of the highway
between Lyman Boulevard and Pioneer Trail, pedestrian/bicycle trails and a trail underpass.
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.
Additionally, the City reports the following fund type:
Agency funds account for the assets of various escrow deposits and the Moon Valley Restoration
Funds held by the City in a trustee capacity or as an agent.
As a general rule the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
45
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues
of the water, sewer, and surface water management 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. BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and for the
Contribution and CATV Special Revenue Funds.
Budgeted amounts are reported as originally adopted, or as amended by the City Council. There were
no budget amendments during 2013. Budgeted expenditure appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not
employed by the City because it is at present not considered necessary to assure effective budgetary
control or to facilitate effective cash management.
E. LEGAL COMPLIANCE - BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following January 1. The operating budget includes proposed expenditures
and the means of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution.
4. Management may authorize transfer of budgeted amounts between departments within any
fund. All budget amendments between funds must be approved by the City Council. The
legal level of budgetary control is at the fund level. Budgetary monitoring, by departments or
divisions and by category, is required by City policy.
46
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund and Special Revenue Funds. Formal budgetary integration is not employed
for Debt Service Funds because effective budgetary control is alternatively achieved through
general obligation bond indenture provisions. Budgetary control for Capital Projects Funds is
accomplished through the use of project controls.
During 2013, the CATV Special Revenue Fund had expenditures of $162,884, which exceeded
budgeted expenditures of $111,600 by $51,284.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Investment income is allocated to individual funds on the basis of the fund's
equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivable in the advancing fund, and an interfund
payable in the fund with the deficit, until adequate resources are received.
Investments are stated at fair value, based upon quoted market prices, except for investments in 2a7-
like external investment pools, which are stated at amortized cost. Investment income is accrued at the
balance sheet date.
For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or
less. Therefore, the entire balance in such fund types is considered cash equivalents.
G. RECEIVABLES
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 H and I). Because utility bills are considered liens on property, no estimated
uncollectible amounts are established. Uncollectible amounts are not material for other receivables
and have not been reported.
E, yJ
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December
(levy /assessment date) of each year for collection in the following year. The County is responsible for
billing and collecting all property taxes for itself, the City, the local School District and other taxing
authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that
date. Real property taxes are payable (by property owners) on May 15 and October 15 of each
calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each
year. These taxes are collected by the County and remitted to the City on or before July 15 and
December 15 of the same year. Delinquent collections for November and December are received the
following January. The City has no ability to enforce payment of property taxes by property owners.
The County possesses this authority.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes property tax revenue in the period for which taxes were levied. Uncollectible
property taxes are not material and have not been reported.
GOVERNMENT FUND FINANCIAL STATEMENTS
The City recognizes property tax revenue when it becomes both measurable and available to finance
expenditures of the current period. In practice, current and delinquent taxes and State credits received
by the City in July, December and January are recognized as revenue for the current year. Taxes
collected by the County by December 31 (remitted to the City the following January) and taxes and
credits not received at year end are classified as delinquent and due from County taxes receivable. The
portion of delinquent taxes not collected by the City in January are fully offset by deferred inflows of
resources because they are not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of
the taxable valuation of commercial/industrial real property to various taxing authorities within the
defined metropolitan area. The valuation "shared" is a portion of commercial /industrial property
valuation growth since 1971.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of
special assessment improvement projects in accordance with State Statutes. These assessments are
collectible by the City over a term of years usually consistent with the term of the related bond issue.
Collection of annual installments (including interest) is handled by the County Auditor in the same
manner as property taxes. Property owners are allowed to (and often do) prepay future installments
without interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by
the City Council. Uncollectible special assessments are not material and have not been reported.
GOVERNMENT FUND FINANCIAL STATEMENTS
Revenue from special assessments is recognized by the City when it becomes measurable and
available to finance expenditures of the current fiscal period. In practice, current and delinquent
special assessments received by the City are recognized as revenue for the current year. Special
assessments are collected by the County and remitted by December 31 (remitted to the City the
following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely offset by
deferred inflows of resources.
J. INVENTORIES
GOVERNMENTAL FUNDS
The original cost of materials and supplies are recorded as expenditures at the time of purchase. These
funds do not maintain material amounts of inventories.
PROPRIETARY FUNDS
Inventories of the Proprietary Funds are stated at cost, which approximates market, using the first -in,
first -out (FIFO) method.
K. PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government -wide and fund financial statements. Prepaid items are reported
using the consumption method and recorded as expenditures /expenses at the time of consumption.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, trails,
sidewalks, and similar items), and intangible assets such as easements and computer software, are
reported in the applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of
more than $5,000 (except for easements which is $10,000) and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.
49
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
In the case of the initial capitalization of general infrastructure assets, the City chose to include all
such items regardless of their acquisition date amount. These assets are reported at historical or
estimated historical cost, using the 1987 base highway construction price trend, when historical costs
were unavailable.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business -type activities is included as part of
the capitalized value of the assets constructed. For the year ended December 31, 2013, no interest was
capitalized in connection with construction in progress.
Capital assets of the City are depreciated/amortized using the straight line method over the following
estimated useful lives:
Buildings and structures
20 — 50 years
Machinery and equipment (including software)
3 — 30 years
Drainage systems
30 years
Water and sewer lines
30 years
Streets
25 — 50 years
Trails
15 years
Sidewalks
25 years
Other improvements
7 — 40 years
Temporary easements
2 years
M. COMPENSATED ABSENCES
The City compensates all employees upon termination for unused vacation and unused sick time up to
a maximum based upon length of service. The City compensates nonexempt employees for unused
comp time. All vacation pay 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. In
accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting
for Compensated Absences, no liability is recorded for nonvesting accumulating rights to receive sick
pay benefits. However, a liability is recognized for that portion of accumulating sick leave benefits
that is vested as severance pay.
N. LONG -TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial
statements, long -term debt and other long -term obligations are reported as liabilities in the applicable
governmental activities, business -type activities, or proprietary fund type statement of net position.
Bond premiums and discounts, if material, are amortized over the life of the related debt.
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
In the fund financial statements, governmental fund types recognize bond premiums and discounts
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.
O. DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net
position that applies to future periods, and therefore, will not be recognized as an inflow of resources
(revenue) until that time. The government has one type of item, which arises only under a modified
accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item,
unavailable revenue, is reported only in the governmental fund balance sheet. The governmental
funds report unavailable revenues from the following sources: property taxes, special assessments and
other revenue not collected within 60 days from year -end.
P. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by
Resolution of City Council, and committed amounts cannot be used for any other purpose unless
the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City's
intended use. Pursuant to the City's Fund Balance Policy, the City Manager or Finance Director
are authorized to assign fund balance that reflects the City's intended use of those funds.
Unassigned - is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City's policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City's policy to use
resources in the following order; 1) committed 2) assigned and 3) unassigned. The exception to this is
the Park Acquisition and Development Fund (410), where it is the City's policy to use resources in the
following order; 1) assigned, 2) committed, and 3) restricted.
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Q. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for
expenditures /expenses initially made from it that are properly applicable to another fund, are recorded
as expenditures /expenses in the reimbursing fund and as reductions of expenditures /expenses in the
fund that is reimbursed.
Short-term interfund loans are classified as "due to /from other funds." Long -term interfund loans are
classified as "interfund loan receivable /payable." Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide financial
statements as "internal balances." All other interfund transactions are reported as transfers.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
S. RECLASSIFICATIONS
Certain amounts in the prior year have been reclassified to conform with the current year presentation.
T. COMPARATIVE TOTALS
The basic financial statements and schedules, required supplementary information, and combining and
individual fund financial statements include certain prior -year summarized comparative information in
total but not at the level of detail required for a presentation in conformity with generally accepted
accounting principles. Accordingly, such information should be read in conjunction with the
government's financial statements for the year ended December 31, 2012, from which the summarized
information was derived.
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
U. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balances — total
governmental funds and net position — governmental activities as reported in the government -wide
statement of net position. One element of that reconciliation explains that "long -term liabilities,
including bonds payable, are not due and payable in the current period and therefore are not
reported in the funds." The details of this ($17,135,757) difference are as follows:
Bonds payable ($16,080,000)
Accrued interest payable (241,736)
Compensated absences (794,233)
Other post employment benefit payable (19,788)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($17,135,757)
2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
AND THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES
The government fund statement of revenues, expenditures, and changes in fund balances includes
a reconciliation between net changes in fund balances — total governmental funds and changes in
net position ofgovernmental activities as reported in the government -wide statement of activities.
One element of that reconciliation explains that "governmental funds report capital outlays as
expenditures. However, in the statement of activities the cost of those assets is allocated over
their estimated useful lives and reported as depreciation expense." The details of this
($1,763,884) difference are as follows:
Capital outlay /construction $3,271,793
Depreciation expense (5,035,677)
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities ($1,763,884)
53
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Another element of that reconciliation states that "the net effect of various miscellaneous
transactions involving capital assets (i.e., sales, trade -ins and donations) is to increase (decrease)
net position." The details of this $1,480,630 difference are as follows:
Donations of capital assets increase net position in the
statement of activities, but do not appear in the governmental
funds because they are not financial resources $1,986,082
Transfer of capital assets to Enterprise Funds (537,127)
The statement of activities reports losses arising from the
trade -in or disposal of existing assets to acquire new capital
assets. Conversely, governmental funds do not report any
gain or loss on trade -in of capital assets 31,675
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities $1,480,630
Another element of that reconciliation states that "revenues on the statement of activities that do
not provide current financial resources are not reported as revenues in the funds." The details of
this ($2,089,946) difference are as follows:
Unavailable revenue - general property taxes:
At December 31, 2012
At December 31, 2013
Unavailable revenue - special assessments:
At December 31, 2012
At December 31, 2013
Other revenue was not available because it was not
collected within 60 days from year -end.
At December 31, 2012
At December 31, 2013
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities
54
($194,105)
76,946
(5,423,913)
3,451,493
(5,956)
5,589
($2,089,946)
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Another element of that reconciliation states that "the issuance of long -term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
long -term debt consumes the current financial resources of governmental funds." Neither
transaction, however, has any effect on net position. The details of this $1,590,000 difference are
as follows:
Principal repayments:
General obligation debt 550,000
General obligation improvement bonds 970,000
General obligation tax increment bonds 70,000
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $1,590,000
Another element of that reconciliation states that "some expenses reported in the statement of
activities do not require the use of current financial resources and therefore are not reported as
expenditures in governmental funds." The details of this $42,794 difference are as follows:
Compensated absences $35,911
Other post employment benefits (4,252)
Accrued interest 11,135
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $42,794
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks
authorized by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk — Custodial credit risk is the risk that in the event of a bank failure, the City's
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or
collateral protect all City deposits. The market value of collateral pledged must equal 110% of
deposits not covered by insurance or bonds. The City has no additional deposit policies addressing
custodial credit risk. As of December 31, 2013, the bank balance of the City's deposits was
$7,391,071. Of this amount, $7,045,388 was insured by the FDIC or covered by pledged collateral
held in the City's name. $345,683 of deposits were not insured by the FDIC or covered by pledged
collateral.
55
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c) 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;
d) General obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
e) 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
f) Time deposits that are fully insured by any federal agency.
At December 31, 2013, the carrying amount of the City's deposits with financial institutions was
$7,364,767.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage- backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are in securities described in (a) above, general obligation tax- exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing
powers which is rated "A" or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing
powers which is rated "AA" or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated "A" or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker - dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section
429.091, subdivision 7; 469.178, subdivision 5; or 475.6 1, subdivision 6.
As of December 31, 2013, the City had the following investments and maturities:
Investment Maturities (in Years)
Less
Than 1 1 -5 6 -10
$528,820
7,035,579
3,476,246
1,803,895
$12,844,540
(1) $2,807,010 are rated Aaa, $2,872,288 are rated Aal, Total investments
$2,374,562 are rated Aa2, $3,411,355 are rated Aa3 and $1,025,210 Deposits
are rated Al. Petty cash
NR - Not Rated Total cash and investments
Fair
Investment Type
Rating
Value
4M Fund
NR
$528,820
Money Market Mutual Funds
NR
7,035,579
Brokered Certificates of Deposit
NR
5,207,039
Municipal Bonds
(1)
12,490,425
Federal Home Loan Bank Notes
Aaa
3,150,812
Federal National Mortgage Assn. Notes
Aaa
998,295
Federal Home Loan Mortgage Corp. Notes
Aaa
984,244
Total
$30,395,214
Investment Maturities (in Years)
Less
Than 1 1 -5 6 -10
$528,820
7,035,579
3,476,246
1,803,895
$12,844,540
(1) $2,807,010 are rated Aaa, $2,872,288 are rated Aal, Total investments
$2,374,562 are rated Aa2, $3,411,355 are rated Aa3 and $1,025,210 Deposits
are rated Al. Petty cash
NR - Not Rated Total cash and investments
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year.
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business -type (Statement 1) $32,663,984
Fiduciary (Statement 9) 1,426,193
Cash with escrow agent (Statement 1) 3,670,439
Total
57
$37,760,616
1,730,793
10,686,530
-
2,486,795
664,017
998,295
-
984,244
-
$16,886,657
$664,017
$30,395,214
7,364,767
635
$37,760,616
Classifications above are by maturity date. Some investments listed above have call dates that occur in less than one year.
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business -type (Statement 1) $32,663,984
Fiduciary (Statement 9) 1,426,193
Cash with escrow agent (Statement 1) 3,670,439
Total
57
$37,760,616
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
C. INVESTMENT RISKS
Custodial credit risk — investments — For investments in securities, custodial credit risk is the risk that
in the event of failure of the counterparty to a transaction, the City will not be able to recover the value
of its investment securities that are in the possession of an outside party. Investments in investment
pools and money markets are not evidenced by securities that exist in physical or book entry form, and
therefore are not subject to custodial credit risk disclosures. The City's investment policy requires the
City's security broker /dealers to provide its audited financial statements, proof of NASD certification,
proof of state registration, and certification of having read, understood and agreed to comply with the
City's investment policy. Investments in securities are held by the City's broker - dealer of which
$2,000,000 is insured through SIPC. Each broker -dealer has provided additional protection by
providing additional insurance. This insurance is subject to aggregate limits applied to all of the
broker - dealer's accounts.
Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could
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,
i.e., not investing in maturities longer than seven years.
Credit Risk — Credit risk is the risk that an issuer or other counterparty to an investment will be unable
to fulfill its obligation to the holder of the investment. State law limits investments to commercial
paper to those rated in the highest quality category by at least two nationally recognized rating
agencies; in any security of the State of Minnesota or any of its municipalities which is rated "A" or
better by a national bond rating service for general obligation and rated "AA" or better for a revenue
obligation; a general obligation of the Minnesota Housing Finance Agency to those rated "A" or better
by a national bond rating agency; mutual funds or money market funds whose investments are
restricted to securities described in MS 118A.04. The City's investment policy does not place further
restrictions on investment options. The City's external investment pool is with the 4M fund which is
regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. The
4M fund is an unrated 20 -like pool and the fair value of the position in the pool is the same as the
value of pool shares.
Concentration of credit risk — Concentration of credit risk is the risk of loss that may be 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). Investments in a single issuer
exceeding 5% of the City's overall cash and investment portfolio (excluding cash with escrow agent)
are in various holdings as follows:
Federal Home Loan Bank notes 8%
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2013 are as
follows:
CONTRACT FOR DEED RECEIVABLE
During 2012, the City sold its old public works building for $1,475,000. The City received $30,000 at the time
of closing, and entered into an agreement to collect the remaining amount due, plus 5% interest, in monthly
payments through July 2017 as follows:
Year Ending
December 31,
2014
2015
2016
2017
Principal
$45,600
39,492
29,373
1,258,203
Total $1,372,668
59
Contract
Interfund
Delinquent
Special
for Deed
Loan
Property
Assessments
Receivable
Receivable
Taxes
Receivable
Total
Major Funds:
General
$ -
$ -
$23,032
$32
$23,064
2009A G.O. Refunding
-
-
-
879,043
879,043
Revolving Assessment Fund
-
-
-
1,540,339
1,540,339
Water
-
457,057
-
41,508
498,565
Sewer
-
-
-
13,403
13,403
Nonmajor Funds
1,327,068
-
-
595,542
1,922,610
$1,327,068
$457,057
$23,032
$3,069,867
$4,877,024
CONTRACT FOR DEED RECEIVABLE
During 2012, the City sold its old public works building for $1,475,000. The City received $30,000 at the time
of closing, and entered into an agreement to collect the remaining amount due, plus 5% interest, in monthly
payments through July 2017 as follows:
Year Ending
December 31,
2014
2015
2016
2017
Principal
$45,600
39,492
29,373
1,258,203
Total $1,372,668
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 4 UNAVAILABLE REVENUE
Governmental funds report deferred inflows of resources in connection with receivables of revenues that are
notconsidered to be available to liquidate liabilities of the current period. At December 31, 2013, the various
components of unavailable revenue were as follows:
Major Funds
2009A
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 was as follows:
Primary Government
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Infrastructure
Total accumulated depreciation
Beginning Ending
Balance Increase Decrease Balance
$19,631,489
$161,300
G.O.
Revolving
1,698,800
(2,240,562) 1,961,177
539,918
General
Refunding
Assessment
Nonmajor
(2,240,562) 22,676,636
5,800,369
Fund
Bonds
Fund
Funds
Total
Delinquent property taxes receivable
$76,946
$ -
$ -
$ -
$76,946
Special assessments not yet due
1,296
884,836
1,859,642
705,719
3,451,493
Other
4,998
-
-
591
5,589
Total unavailable revenue
$83,240
$884,836
$1,859,642
$706,310
$3,534,028
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 was as follows:
Primary Government
Governmental activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Infrastructure
Total accumulated depreciation
Beginning Ending
Balance Increase Decrease Balance
$19,631,489
$161,300
$ - $19,792,789
2,502,939
1,698,800
(2,240,562) 1,961,177
539,918
382,752
922,670
22,674,346
2,242,852
(2,240,562) 22,676,636
22,832,191
26,568
-
22,858,759
8,022,468
496,881
(210,462)
8,308,887
22,782
931
(10,782)
12,931
5,800,369
880,366
6,680,735
109,461,432
3,378,906
(176,092)
112,664,246
146,139,242
4,783,652
(397,336)
150,525,558
5,590,393
558,871
6,149,264
5,443,433
455,745
(177,823)
5,721,355
5,406
11,393
(10,782)
6,017
2,422,773
246,553
2,669,326
68,263,019
3,763,115
(175,212)
71,850,922
81,725,024
5,035,677
(363,817)
86,396,884
Governmental activities capital assets - net $87,088,564 $1,990,827 ($2,274,081) $86,805,310
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Primary Government
Business -type activities:
Capital assets not being depreciated:
Land
Construction in progress
Permanent easements
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Temporary easements
Other improvements
Total accumulated depreciation
Business -type activities capital assets - net
Total capital assets - net
Beginning Ending
Balance Increase Decrease Balance
$1,997,435
$75,200 $ -
$2,072,635
2,984,240
898,921 (1,184,345)
2,698,816
398,564
436,919 -
835,483
5,380,239
1,411,040 (1,184,345)
5,606,934
12,445,429
- -
12,445,429
2,582,579
160,083 (1,322,965)
1,419,697
34,728
- -
34,728
100,130,331
1,607,048 (125,447)
101,611,932
115,193,067
1,767,131 (1,448,412)
115,511,786
1,245,245
248,918
-
1,494,163
1,546,818
81,573
(704,219)
924,172
17,412
17,316
-
34,728
51,826,479
2,891,335
(125,447)
54,592,367
54,635,954
3,239,142
(829,666)
57,045,430
65,937,352 (60,971) (1,803,091) 64,073,290
$153,025,916 $1,929,856 ($4,077,172) $150,878,600
Depreciation expense was charged to functions /programs of the City as follows:
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Total depreciation expense - governmental activities
Business -type activities:
Water
Sewer
Surface water management
Total depreciation expense - business -type activities
61
$355,341
143,439
3,609,094
927,803
$5,035,677
$1,501,454
936,293
801,395
$3,239,142
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 6 CITY INDEBTEDNESS
The City issues general obligation bonds, to provide funds for the acquisition and construction of major capital
facilities. The reporting entity's long -term debt is segregated between the amounts to be repaid from
governmental activities and amounts to be repaid from business -type activities.
GOVERNMENTAL ACTIVITIES
As of December 31, 2013, the governmental activities long -term debt of the City consisted of the following:
Final
Issue Maturity
Date Date
General Long -Term Debt:
General Obligation Bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A 11/18/08 2/01/30
G.O. Library Refunding Bonds, 2010A 1/27/10 2/01/22
Total general obligation bonds
Tax Increment Bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C
General Obligation Improvement Bonds:
G.O. Improvement Refunding Bonds, Series 2009A
Compensated absences payable
Total City indebtedness - governmental activities
BUSINESS -TYPE ACTIVITIES
Authorized
Interest And Outstanding
Rate Issued 12/31/13
4.00% - 4.60% $7,550,000 $6,780,000
2.00% - 3.10% 3,660,000 3,375,000
11,210,000 10,155,000
8/10/04 2/01/21 3.00% -6.00% 1,170,000
705,000
6/03/09 2/01/17 3% 6,020,000
5,220,000
N/A
794,233
$18,400,000
$16,874,233
As of December 31, 2013, the business -type activities long -term debt of the City consisted of the following:
Compensated absences payable
Total City indebtedness - business -type activities
62
Authorized
And Outstanding
Issued 12/31/13
$7,930,000
$5,505,000
Final
5,700,000
3,720,000
3,720,000
Issue
Maturity
Interest
154,287
Date
Date
Rate
G.O. Revenue Bonds:
Water Revenue Bonds, Series 2004B
8/10/2004
2/1/2025
4.00%
- 4.50%
Water Revenue Bonds, Series 2011A
10/6/2011
2/1/2022
0.30%
- 2.15%
Water Revenue Refunding Bonds, Series 2011B
10/6/2011
2/1/2025
2.00%
- 3.00%
Water and Sewer Revenue Bonds, Series 2012A
11/15/2012
2/1/2023
1.00%
-1.55%
Bond premium
Total G.O. revenue bonds
Compensated absences payable
Total City indebtedness - business -type activities
62
Authorized
And Outstanding
Issued 12/31/13
$7,930,000
$5,505,000
5,920,000
5,700,000
3,720,000
3,720,000
1,245,000
1,245,000
182,339
154,287
18,997,339
16,324,287
N/A
161,004
$18,997,339 $16,485,291
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long -term debt are as follows:
It is not practicable to determine the specific year for payment of long -term accrued compensated absences
The City has issued General Improvement Bonds to provide funds for various construction projects. In case of
a default by property owners, the City can place a lien on the property in order to recover the default.
63
General Obligation Bonds
G.O. Improvement Bonds
G.O. Tax Increment Bonds
Year Ending
Governmental Activities
Governmental Activities
Governmental Activities
December 31,
Principal
Interest
Principal
Interest
Principal
Interest
2014
$605,000
$375,173
$3,515,000
$103,875
$70,000
$37,775
2015
625,000
356,848
550,000
42,900
75,000
34,005
2016
640,000
337,111
565,000
26,175
80,000
29,895
2017
670,000
315,298
590,000
8,850
85,000
25,440
2018
695,000
291,648
-
-
90,000
20,580
2019
725,000
266,964
-
-
95,000
15,308
2020
755,000
241,053
-
-
100,000
9,600
2021
780,000
213,948
-
-
110,000
3,300
2022
815,000
185,370
-
-
-
-
2023
405,000
162,014
-
-
-
-
2024
425,000
144,270
-
-
-
-
2025
445,000
125,454
-
-
-
-
2026
465,000
105,545
-
-
-
-
2027
490,000
84,413
-
-
-
-
2028
510,000
62,035
-
-
-
-
2029
540,000
38,275
-
-
-
-
2030
565,000
12,995
-
-
-
-
Total
$10,155,000
$3,318,414
$5,220,000
$181,800
$705,000
$175,903
It is not practicable to determine the specific year for payment of long -term accrued compensated absences
The City has issued General Improvement Bonds to provide funds for various construction projects. In case of
a default by property owners, the City can place a lien on the property in order to recover the default.
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
BUSINESS -TYPE ACTIVITIES
Annual debt service requirements to maturity for the business -type long -term debt are as follows:
G.O. Revenue Bonds
Year Ending Business -Type Activities
December 31, Principal Interest
2014
$4,690,000
$419,419
2015
1,145,000
243,303
2016
1,190,000
222,281
2017
1,215,000
198,140
2018
1,255,000
171,048
2019
1,290,000
145,828
2020
1,310,000
120,679
2021
1,355,000
90,821
2022
920,000
63,634
2023
670,000
42,971
2024
555,000
25,575
2025
575,000
8,625
Total
$16,170,000
$1,752,324
It is not practicable to detennine the specific year for payment of long -term accrued compensated absences.
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
CHANGE IN LONG -TERM LIABILITIES
Long -term liability activity for the year ended December 31, 2013 was as follows:
Governmental activities:
Bonds payable:
General obligation bonds
G.O. improvement bonds
G.O. tax increment bonds
Total bonds payable
Compensated absences
Total governmental activity
long -term liabilities
Business -type activities:
G.O. revenue bonds
Bond premium
Compensated absences
Total business -type activity
long -term liabilities
Beginning
Balance Additions
Ending Due Within
Deletions Balance One Year
$10,705,000
$ -
($550,000)
$10,155,000
$605,000
6,190,000
-
(970,000)
5,220,000
3,515,000
775,000
-
(70,000)
705,000
70,000
17,670,000
-
(1,590,000)
16,080,000
4,190,000
830,144
567,042
(602,953)
794,233
54,836
$18,500,144
$567,042
($2,192,953)
$16,874,233
$4,244,836
$20,410,000
$ -
($4,240,000)
$16,170,000
$4,690,000
168,313
-
(14,026)
154,287
14,026
137,856
121,861
(98,713)
161,004
11,116
$20,716,169
$121,861
($4,352,739)
$16,485,291
$4,715,142
For the governmental activities, compensated absences are generally liquidated by the General and Special
Revenue Funds.
All long -term bonded indebtedness outstanding at December 31, 2013 is backed by the full faith and credit of
the City, including special assessment, tax increment and water revenue bond issues. Delinquent assessments
receivable at December 31, 2013 totaled $2,221.
General Obligation Revenue Bonds are serviced by the Sewer and Water Enterprise Funds and are carried as
debt of those funds. Other bonds are supported by various Debt Service Funds. All bonds are backed by the
full faith, credit, and taxing power of the City.
CROSSOVER REFUNDINGS
Series 2011B Bonds
On October 6, 2011, the City issued $3,720,000 in General Obligation Water Revenue Bonds, Series 2011B
with an average interest rate of 2.90% to advance refund $3,575,000 of outstanding 2004B Series Bonds with
an average interest rate of 4.22 %. The net proceeds were used to purchase U.S. government securities in the
amount of $3,843,718. Those securities were deposited in an irrevocable trust with an escrow agent to provide
for the interest on the refunding bonds through the crossover date of August 1, 2014 and called principal on the
refunded bonds (2019 through 2025 maturities) on August 1, 2014.
The City advance refunded the 2019 through 2025 maturities of the 2004B General Obligation Water Revenue
Bonds to reduce its total debt service payments during the years 2012 through 2025 by $259,863 and to obtain
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
an economic gain (difference between the present value of the debt service payments on the old and new debt)
of $223,262.
The City is responsible for the debt service of the refunded bonds through February 1, 2018 and the debt
service of the refunding bonds beginning February 1, 2015. The debt service of the refunding bonds due prior
to February 1, 2015 is payable from the escrow account. Assets held with the escrow agent total $3,670,439 at
December 31, 2013.
The financial statements present each bond issue and the escrow account assets pursuant to GASB No. 7. The
effect on the financial statements is to report greater debt than, in substance, the City will be responsible for
paying.
The refunding portion of the 2011B bonds are crossover refunding bonds whereby the City and the escrow
agent are responsible for debt service payments as follows:
66
Debt Service Commitment
Year Ending
Refunded
Refunding
Escrow
December 31,
Bonds Total
Bonds Total
Account
City
2014
$4,158,854
$106,000
$3,681,000
$583,854
2015
426,840
106,000
-
532,840
2016
426,740
135,700
-
562,440
2017
425,840
135,100
-
560,940
2018
428,820
134,500
-
563,320
2019
-
569,500
-
569,500
2020
-
567,600
-
567,600
2021
-
572,900
-
572,900
2022
-
572,675
-
572,675
2023
-
576,925
-
576,925
2024
-
580,575
-
580,575
2025
-
583,625
-
583,625
Total
$5,867,094
$4,641,100
$3,681,000
$6,827,194
66
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
REVENUE PLEDGED
Future revenue pledged for the payment of long -term debt is as follows:
Note 7 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General obligation bond issues sold by the City are financed by ad valorem tax levies. Special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax
levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are
subject to cancellation when and if the City has provided alternative sources of financing. The City Council is
required to levy any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at
December 31, 2013.
Future scheduled tax levies for all bonds outstanding at December 31, 2013 totaled $14,517,150.
67
Revenue Pled god
Current Year
Percent of
Debt service
Remaining
Principal
Pledged
Use of
Total
as a % of
Term of
Principal
and Interest
Revenue
Bond Issue
Proceeds
Type
Debt Service
net revenues
Pled a
and Interest
Paid
Received
2008A CIF bonds
Public Works Facility construction
Property taxes
100%
n/a
2009 -2029
$9,626,421
$561,167
$593,200
2010A Library Refunding bonds
Library oonstmction
Property taxes
100%
ri a
2012-2021
$3,846,993
$381,955
$445,310
- refunded the 2002A Library bonds
2004C TIF Refunding bonds
Doemtovm Redevelopment Project
Tax increment
100%
n1a
2004 -2021
$880,903
$111,345
$111,345
2009A Improvement Refunding bonds
Infrastructure improvements
Special assessments
68%
nia
2009 -2017
$5,401,800
$359,600
$2,724,645
- refunded the 2005A & 2006A bonds
Property taxes
32
100%
2011A Water Revenue bonds
Water infrastructure improvements
Water usage charges
10.4 %
2012-2021
$6,089,687
$292,470
$2,818,082
- refunded the 2005B bonds
2011B Water Revenue bonds
Water infrastructure improvements
Water usage charges
100%
3.R%
2012 -2024
$4,641,100
$106,000
$2,818,082
- refunded the 2005B bonds
2012A Water &Seaver Revenue
Purchase ofineter reading equipment
Water and sewer
100%
0.2%
2013 -2022
$1,324,443
$10,162
$5,174,138
Bonds
usage charges
Note 7 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General obligation bond issues sold by the City are financed by ad valorem tax levies. Special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax
levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are
subject to cancellation when and if the City has provided alternative sources of financing. The City Council is
required to levy any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at
December 31, 2013.
Future scheduled tax levies for all bonds outstanding at December 31, 2013 totaled $14,517,150.
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 8 PENSION PLANS
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)
PLAN DESCRIPTION
All full -time and certain part-time employees of the City are covered by defined benefit plans administered
by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General
Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are
cost - sharing, multiple - employer retirement plans. These plans are established and administered in
accordance with Minnesota Statute, Chapters 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by
statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
The benefit provisions stated in the previous paragraphs of this section are current provisions and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not
receiving them yet are bound by the provisions in effect at the time they last terminated their public
service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the intemet at
www.mnpera.org, by writing to PERA, 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by
calling 651- 296 -7460 or 1- 800 - 652 -9026.
B. FUNDING POLICY
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These
statutes are established and amended by the state legislature. The City makes annual contributions to
the pension plans equal to the amount required by state statutes. GERF Basic Plan members and
Coordinated Plan members were required to contribute 9.10% and 6.25 %, respectively, of their annual
covered salary in 2013. PEPFF members were required to contribute 9.6% of their annual covered
salary in 2013. The City was required to contribute the following percentages of annual covered
payroll in 2013: 11.78% for Basic Plan GERF members, 7.25% for Coordinated Plan members, and
14.4% for PEPFF members. The City's contributions to the General Employees Retirement Fund for
the years ending December 31, 2013, 2012 and 2011 were $327,268, $318,411 and $318,398,
respectively. The City's contributions to the Public Employees Police and Fire Fund for the years
ending December 31, 2013, 2012 and 2011 were $17,883, $18,444 and $18,058, respectively. The
City's contributions were equal to the contractually required contributions for each year as set by state
statute.
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
C. CHANHASSEN FIRE RELIEF ASSOCIATION
PLAN DESCRIPTION
The volunteer firefighters of the City are members of the Chanhassen Fire Department Relief
Association. The Chanhassen Fire Department Relief Association is the administrator of a single
employer defined benefit Public Employee Retirement System (PERS) established to provide benefits
for members of the Chanhassen Fire Department. Plan provisions are established and may be
amended by the Relief Association's Board of Trustees within the guidelines of the State of Minnesota
statutes.
The Relief Association provides retirement and disability benefits to members, and benefits to
survivors upon death of eligible members. All benefit provisions, and the obligation to make
contributions, are established and administered in accordance with Minnesota Statutes.
The Relief Association issues a publicly available financial report that includes financial statements
and required supplementary information. That report may be obtained by writing to Chanhassen Fire
Department Relief Association, P.O. Box 97, Chanhassen, MN 55317
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
FUNDING POLICY
Minnesota Statutes Chapter 69.772 specifies minimum support rates required on an annual basis. The
minimum support rates from the municipality and from State aid are determined as the amount
required to meet the normal cost plus amortizing any existing prior service costs over a ten -year
period. The significant actuarial assumptions used to compute the municipal support are the same as
those used to compute the accrued pension liability. The Relief Association is comprised of
volunteers; therefore, members have no contribution requirements. During the year, the City
recognized as revenue and as an expenditure an on- behalf payment of $159,506 made by the State of
Minnesota for the Relief Association. The City's annual pension cost for the current year and related
information for the plan is as follows:
Annual pension cost $167,163
Contributions made:
City 7,657
State aid 159,506
Actuarial valuation date 12/31/13
Actuarial cost method Entry age normal
Amortization method Level dollar open
Remaining amortization period:
Normal cost
20 years
Prior service cost
10 years
Asset valuation method
Market
Actuarial assumptions:
Cost (APC)
Investment rate of return
5%
Projected salary increases
N/A
Includes inflation at
N/A
Cost of living adjustments
None
THREE YEAR TREND INFORMATION
VIII
Annual
Percentage Net
Year
Pension
of APC Pension
Ending
Cost (APC)
Contributed Obligation
12/31/2011
$161,302
100% $ -
12/31/2012
161,202
100% -
12/31/2013
167,163
100% -
VIII
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
REQUIRED SUPPLEMENTARY INFORMATION
Actuarial Actuarial
Valuation Value of
Date Assets
Assets in
Excess of/
Actuarial (Unfunded)
Accrued Accrued
Liability Liability
Pension
Benefit
Funded Per Year
Ratio of Service
12/31/2011 $2,194,668 $2,825,000 ($630,332) 77.7% $5,050
12/31/2012 2,393,673 2,980,865 ($587,192) 80.3% 5,050
12/31/2013 2,551,904 2,803,000 ($251,096) 91.0% 5,050
The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are
no covered payroll amounts or percentage calculations).
Note 9 OTHER POST - EMPLOYMENT BENEFITS
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8, the City provides post - employment
health care benefits (as defined in paragraph B) for retired employees through a single - employer
defined benefit plan. The City's OPEB plan is administered by the City. The authority to provide
these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465. The
benefits, benefit levels, employee contributions and employer contributions are governed by the City
and can be amended by the City through its personnel manual and collective bargaining agreements
with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust has not
been established to account for the plan. The Plan does not issue a separate report.
B. BENEFITS PROVIDED
Retirees
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.
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
All health care coverage 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 group 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 years of age, Medicare becomes the
primary insurer and the City's plan becomes secondary.
C. PARTICIPANTS
As of the actuarial valuation dated December 2011, participants consisted of:
Retirees and beneficiaries currently
purchasing health insurance through the City
Active employees
Total
63
65
Participating employers 1
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay- as -you-
go basis. The City Council may change the funding policy at any time.
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City's annual other post employment benefit (OPEB) cost is calculated based on the annual
required contribution (ARC) of the employer, an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years. The net OPEB obligation as of
December 31, 2013, was calculated as follows:
Annual required contribution (ARC) $9,383
Interest on net OPEB obligation 311
Adjustment to ARC (686)
Annual OPEB cost 9,008
Contributions made during the year (4,756)
Increase (decrease) in net OPEB obligation 4,252
Net OPEB obligation - beginning of year 15,536
Net OPEB obligation - end of year $19,788
For governmental activities, the net OPEB obligation is generally liquidated by the General Fund.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Fiscal Year
Ended
December 31, 2011
December 31, 2012
December 31, 2013
Percentage of
Annual OPEB Employer Annual OPEB Cost
Cost Contributions Contributed
Net OPEB
Obligation
$9,208 $4,748 51.6% $11,668
9,100 5,232 57.5% 15,536
9,008 4,756 52.8% 19,788
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
F. FUNDED STATUS AND FUNDING PROGRESS
The City currently has no assets that have been irrevocably deposited in a trust for future health
benefits, therefore, the actuarial value of assets is zero. The funded status of the plan was as follows:
*Using the projected unit credit actuarial pay cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer
are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to financial statements, presents multi -year trend
information that shows whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long -term perspective of the calculations.
In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used.
The actuarial assumptions included a 2.0% investment rate of return (net of administrative expenses)
and an annual health care cost trend rate of 0% in 2011, 2.62% in 2012, 12% in 2013 and 5% in 2014
and beyond. These rates include a 3% inflation rate. The actuarial value of assets was $0. The plan's
unfunded actuarial accrued liability is being amortized using the level percentage of projected payroll
method over 30 years on a closed basis. The remaining amortization period at December 31, 2013 was
24 years.
74
Unfunded
Actuarial
Actuarial
UAAL as a
Actuarial
Actuarial Accrued
Accrued
Funded
Covered
Percentage of
Valuation
Value of Assets Liability (AAL)*
Liability (UAAL)
Ratio
Payroll
Covered Payroll
Date
(a) (b)
(b -a)
(a/b)
(c)
( (b -a) / c)
January 1, 2011
$0 $89,875
$89,875
0.0%
$4,299,466
2.1%
*Using the projected unit credit actuarial pay cost method.
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer
are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to financial statements, presents multi -year trend
information that shows whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long -term perspective of the calculations.
In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used.
The actuarial assumptions included a 2.0% investment rate of return (net of administrative expenses)
and an annual health care cost trend rate of 0% in 2011, 2.62% in 2012, 12% in 2013 and 5% in 2014
and beyond. These rates include a 3% inflation rate. The actuarial value of assets was $0. The plan's
unfunded actuarial accrued liability is being amortized using the level percentage of projected payroll
method over 30 years on a closed basis. The remaining amortization period at December 31, 2013 was
24 years.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 10 INTERFUND LOAN RECEIVABLE /PAYABLE AND TRANSFERS
Amounts reported as interfund receivable /payable at December 31, 2013 are as follows:
Fund
Transit Station Assessment Fund
Water Fund
Total
Receivable Payable
$559,515
559,515
$559,515 $559,515
During 2010, the City adopted resolution 2010 -16A authorizing an interfund loan for advance of certain costs
in connection with the Transit Station Public Improvement Project. The Transit Station Assessment Fund
borrowed $729,253 from the Water Fund. Repayments, including interest, will be made as funds become
available. There were $87,341 of repayments in 2013 and $102,458 is expected to be repaid in 2014.
Interfund transfers:
General Fund
Revolving Assessment Fund
TH101 Imp. - Lyman to Pioneer
Nonmajor government funds
Water Fund
Sewer Fund
Surface Water Management Fund
Total
Transfers Transfers
In
out-,
-
$617,919
1,732,707
108,713
463,856
-
627,734
1,252,942
43,988
502,586
-
195,597
-
190,528
$2,868,285
$2,868,285
Interfund transfers allow the City to allocate financial resources to the funds that receive benefit from services
provided by another fund. All of the City's interfund transfers fall under that category. All of the 2013
transfers are considered routine and consistent with previous practices.
Note 11 CONDUIT DEBT
From time to time, the City has issued conduit debt 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 payments received on the underlying mortgage loans. Upon
repayment of the bonds, ownership of the acquired facilities transfers to the private- sector entity served by the
bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for
the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying
financial statements.
75
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
As of December 31, 2013, the outstanding conduit debt is as follows:
Project Name
Chapel Hill Academy, Series 2005A
St. Hubert Catholic Community, Series 2007
Note 12 DEFICIT FUND BALANCES
Bonds Original 12/31/13 Maturity
Issued Principal Principal Date
12/05 $1,337,700 $665,530 2019
10/07 5,942,140 3,777,485 2027
The City has a deficit fund balance of $559,515 in the Transit Station Assessment Capital Project Fund at
December 31, 2013. The deficit will be eliminated through special assessment collections.
Note 13 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial
insurance for risks of loss, including workers compensation, property and general liability and employee
health and accident insurance. There were no significant reductions in insurance from the previous year or
settlements in excess of insurance coverage for any of the past three fiscal years.
B. LITIGATION
Any existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance; of an immaterial amount; or, in the judgment of the City's management, are
remotely recoverable by plaintiffs.
C. WESTERN AREA FIRE TRAINING ACADEMY
A potential claim may be asserted against the City arising out of its membership in the Western Area
Fire Training Academy ( WAFTA). WAFTA is a joint powers entity consisting of 11 member cities
that was formed in 1974 to purchase property to be used and operated as a fire training facility. In the
late 1980's, WAFTA became aware that the site was contaminated. Since that time, WAFTA has been
working with the Minnesota Pollution Control Agency (MPCA) and other responsible parties to
address the contamination issues on the site. At this time, the City's share of the potential cost to
remediate the site cannot be determined, nor has a claim been asserted against WAFTA or the City.
Based on recent studies of the site, it is Management's belief that the amount of any potential claim is
not material to the financial statements.
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
D. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2013.
E. TAX INCREMENT DISTRICTS
The City's tax increment districts are subject to review by the State of Minnesota Office of the State
Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance
which would have a material effect on the financial statements.
As of December 31, 2013, the City had two outstanding tax increment pay -as- you -go revenue notes.
These notes are not a general obligation of the City and are payable solely from tax increments.
Accordingly, these notes are not reflected in the financial statements of the City. Details of the pay -as-
you-go revenue notes are as follows:
Taxable Tax Increment Revenue Note, Series 2006A (Gatewa Pte) — issued in 2006 in the principal
sum of $300,000 with an interest rate of 0% per annum. Semi - annual principal payments shall be paid
commencing August 1, 2009 and continuing through February 1, 2016. Payments are payable solely
from available tax increment, which term means 90% of the tax increment that is received by the City
in the six month period immediately before each payment date through February 1, 2014 and 65%
from August 1, 2015 through February 1, 2016. The City shall have no obligation to pay unpaid
balance that may remain after the final payment on February 1, 2016. At December 31, 2013 the
principal amount outstanding on the note was $225,591.
Limited Revenue Tax Increment Note (North Bay) — issued in 1999 in the principal sum of $400,000,
plus interest on the unpaid principal at the rate of 9% per annum. Payments are payable solely from
available tax increment, which term means any tax increment generated by the minimum
improvements in the years 1999 through 2013, and received during the six month period preceding a
payment date, after first deducting special assessments there from. $595,200 was retained by the City
for special assessments. The City made its final note payment on February 1, 2014 in the amount of
$37,819 and has no obligation to pay the remaining balance of principal or accrued interest. At
December 31, 2013 the principal amount outstanding on the note was $228,755.
F. COMMITTED CONTRACTS
At December 31, 2013, the City had commitments of $2,724,345 for uncompleted construction
contracts.
77
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 14 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2013, a
summary of the governmental fund balance classifications are as follows:
2009A G.O. Revolving
Other
General Refunding Assessment TH 101
Governmental
Fund Bonds Fund Improvements
Funds
Total
Nonspendable:
Prepaid items
$16,741 $ $ - $ -
$ -
$16,741
Contract for deed receivable
- - -
1,327,068
1,327,068
Total nonspendable
16,741 0 0 0
1,327,068
1,343,809
Restricted for:
Debt service
- 4,493,193 -
1,459,634
5,952,827
Park improvements
- -
1,714,972
1,714,972
Tax increment purposes
- -
1,347,593
1,347,593
CATV - public education
- -
128,693
128,693
Public safety - fire
- - -
37,145
37,145
Total restricted
0 4,493,193 0 0
4,688,037
9,181,230
Assigned for:
Capital improvements 2,167,054 491,377 2,802,879 5,461,310
Cable communications - - 129,385 129,385
Debt service reserve - - - 775,597 775,597
Total assigned 0 0 2,167,054 491,377 3,707,861 6,366,292
Unassigned 5,274,584 (559,515) 4,715,069
Total $5,291,325 $4,493,193 $2,167,054 $491,377 $9,163,451 $21,606,400
B. MINIMUM UNASSIGNED FUND BALANCE POLICY
The City Council has formally adopted a policy regarding the minimum unassigned fund balance for
the General Fund. The most significant revenue source of the General Fund is property taxes. This
revenue source is received in two installments during the year — June and December. As such, it is the
City's goal to begin each fiscal year with sufficient working capital to fund operations between each
semi - annual receipt of property taxes.
The City's fund balance policy states the year end General Fund balance shall be sufficient to cover
50% of the property taxes budgeted to be received during the following year. At December 31, 2013,
the fund balance of the General Fund exceeded this level.
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 15 LEASE REVENUE
The City receives revenue from agreements for the lease of space above its water towers and on City property
to communication companies. The space is used for antennas and other equipment necessary to provide radio
communications. For accounting purposes, the leases are considered operating leases. Lease revenue for the
year ended December 31, 2013 totaled $173,300. Terms of each lease outstanding at year end are as follows:
Lessee
Terms
Sprint
$22,802 per year with 3% annual increases
Sprint
$24,351 per year with 3% annual increases
Verizon
$2,068 per month
Nextel West Corp.
$1,825 per month
T- Mobile
$2,090 per month with 3% annual increases
T- Mobile
$2,029 per month with 3% annual increases
StoneBridge Wireless
5% of gross revenues associated with equipment used on property
Cingular /AT &T
$1,970 per month with 3% annual increases
Note 16 CHANGE IN ACCOUNTING PRINCIPLE
Current Tenn
8/1/11 - 7/31/16
12/1/10 - 11/30/15
8/1/13 - 4/30/17
12/1/12 - 11/30/17
l l /l /10 - 10/31/15
8/1/11 - 7/31/16
4/1/06 - 12/31/14
8/1/12 - 7/31/17
For the year ended December 31, 2013, the City implemented GASB Statements No. 61 and 65. GASB
Statement No. 61, The Financial Reporting Entity: Omnibus — An Amendment of GASB No. 14 and No. 34
modifies certain requirement for inclusion of component units in the financial reporting entity and also amends
the criteria for reporting component units as if they were part of the primary government (i.e. blending). GASB
Statement No. 65, Items Previously Reported as Assets and Liabilities resulted in accounts previously presented
as liabilities being reclassified as deferred inflows or resources.
Note 17 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements, but may affect the City in future years:
• Statement No. 67 Financial Reporting for Pension Plans — an amendment of GASB Statement No. 25.
The provisions of this Statement are effective for periods beginning after June 15, 2013.
• Statement No. 68 Financial Reporting for Pensions — an amendment of GASB Statement No. 27. The
provisions of this Statement are effective for periods beginning after June 15, 2014.
• Statement No. 69 Government Combinations and Disposal of Government Operations. The provisions of
this Statement are effective for periods beginning after December 15, 2013.
• Statement No. 70 Financial Reporting for Nonexchange Financial Guarantees. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2013.
• Statement No. 71 Pension Transition Contributions Made Subsequent to Measurement Date — an
amendment of GASB Statement No. 68. The provisions of this statement are effective for periods
beginning after June 15, 2014.
The effect these standards may have on future financial statements is not determinable at this time.
79
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80
REQUIRED SUPPLEMENTARY INFORMATION
81
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
2013 2012
Budgeted Amounts Actual Variance with Actual
Original Final Amounts Final Budget Amounts
Revenues:
General property taxes
$7,426,700
$7,426,700
$7,457,293
$30,593
$7,423,821
Licenses and permits:
Licenses - general government
5,000
5,000
3,600
(1,400)
3,900
Licenses - public safety
91,800
91,800
98,108
6,308
95,785
Permits - public safety
860,500
860,500
1,169,970
309,470
1,164,300
Permits - public works
33,000
33,000
46,427
13,427
46,295
Permits - community development
6,500
6,500
6,665
165
7,045
Total licenses and permits
996,800
996,800
1,324,770
327,970
1,317,325
Intergovernmental:
State:
PERA - public safety
20,000
20,000
19,589
(411)
19,700
State aid - fire - public safety
105,000
105,000
169,106
64,106
116,932
Other - general government
45,000
45,000
43,251
(1,749)
43,405
State aid - police - public safety
110,000
110,000
127,134
17,134
105,604
Total intergovernmental
280,000
280,000
359,080
79,080
285,641
Charges for services:
General government
76,750
76,750
76,954
204
76,396
Public safety
8,000
8,000
7,492
(508)
5,094
Public works
52,900
52,900
91,052
38,152
71,813
Park and recreation
419,250
419,250
416,850
(2,400)
410,168
Community development
11,200
11,200
30,696
19,496
17,814
Total charges for services
568,100
568,100
623,044
54,944
581,285
Fines and forfeits:
Public safety
131,500
131,500
99,984
(31,516)
119,997
Refunds and reimbursements:
General government
1,700
1,700
6,915
5,215
3,060
Public safety
10,000
10,000
8,518
(1,482)
13,438
Public works
37,300
37,300
56,796
19,496
46,334
Park and recreation
1,000
1,000
10,630
9,630
3,539
Community development
-
-
222
222
205
Total refunds and reimbursements
50,000
50,000
83,081
33,081
66,576
Investment earnings
80,000
80,000
44,959
(35,041)
41,157
Net change in fair value of investments
-
-
(50,077)
(50,077)
(12,009)
Contributions and donations:
General government
1,000
1,000
600
(400)
760
Public safety
1,000
1,000
320
(680)
450
Park and recreation
28,100
28,100
18,725
(9,375)
20,475
Total contributions and donations
30,100
30,100
19,645
(10,455)
21,685
Other:
General government
$179,500
$179,500
$180,299
$799
$171,000
Public safety
4,700
4,700
6,401
1,701
5,955
Total other
184,200
184,200
186,700
2,500
176,955
Total revenues
9,747,400
9,747,400
10,148,479
401,079
10,022,433
82
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Expenditures:
General government:
Legislative:
Current:
Personal services
Contractual services
Total legislative
Administrative office:
Current:
Personal services
Materials and supplies
Contractual services
Total administrative office
Finance:
Current:
Personal services
Materials and supplies
Contractual services
Total finance
Election:
Current:
Personal services
Materials and supplies
Contractual services
Total election
Legal:
Current:
Contractual services
Property assessment:
Current:
Contractual services
M.I.S.:
Current:
Personal services
Materials and supplies
Contractual services
Total M.I.S.
2013
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
2012
Actual
Amounts
32,300
32,300
32,703
(403)
32,004
69,800
69,800
89,495
(19,695)
74,763
102,100
102,100
122,198
(20,098)
106,767
429,800
429,800
436,645
(6,845)
400,234
-
-
435
(435)
453
66,800
66,800
69,863
(3,063)
59,293
496,600
496,600
506,943
(10,343)
459,980
234,300
234,300
236,729
(2,429)
230,749
200
200
-
200
-
48,000
48,000
47,199
801
54,428
282,500
282,500
283,928
(1,428)
285,177
22,500
22,500
-
22,500
28,290
3,500
3,500
-
3,500
1,504
9,100
9,100
48
9,052
21,187
35,100
35,100
48
35,052
50,981
155,000
155,000
159,919
(4,919)
135,086
124,900
124,900
123,590
1,310
128,308
184,500
184,500
182,569
1,931
187,184
38,250
38,250
31,238
7,012
1,935
40,950
40,950
37,940
3,010
71,836
263,700
263,700
251,747
11,953
260,955
83
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
84
2013
2012
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services
$74,300
$74,300
$72,544
$1,756
$70,803
Materials and supplies
42,600
$42,600
36,862
5,738
48,002
Contractual services
296,400
296,400
273,134
23,266
267,802
Total City hall
413,300
413,300
382,540
30,760
386,607
Library:
Current:
Materials and supplies
3,000
3,000
5,543
(2,543)
3,426
Contractual services
117,600
117,600
113,887
3,713
99,123
Total library
120,600
120,600
119,430
1,170
102,549
Total general government
1,993,800
1,993,800
1,950,343
43,457
1,916,410
Public safety:
Police:
Current:
Personal services
68,200
68,200
68,415
(215)
66,683
Materials and supplies
3,000
3,000
2,378
622
3,726
Contractual services
1,520,000
1,520,000
1,508,489
11,511
1,398,350
Total police
1,591,200
1,591,200
1,579,282
11,918
1,468,759
Fire department:
Current:
Personal services
588,900
588,900
603,172
(14,272)
572,604
Materials and supplies
50,600
50,600
51,318
(718)
49,563
Contractual services
117,800
117,800
124,057
(6,257)
147,023
Total fire department
757,300
757,300
778,547
(21,247)
769,190
Code enforcement:
Current:
Personal services
607,100
607,100
644,438
(37,338)
591,817
Materials and supplies
5,100
5,100
4,106
994
3,089
Contractual services
15,300
15,300
10,521
4,779
12,923
Total code enforcement
627,500
627,500
659,065
(31,565)
607,829
Animal control:
Current:
Personal services
60,400
60,400
46,218
14,182
52,667
Materials and supplies
4,000
4,000
1,131
2,869
3,676
Contractual services
13,500
13,500
6,731
6,769
11,255
Total animal control
77,900
77,900
54,080
23,820
67,598
Total public safety
3,053,900
3,053,900
3,070,974
(17,074)
2,913,376
84
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Expenditures: (continued)
Public works:
Engineering:
Current:
Personal services
Materials and supplies
Contractual services
Total engineering
Street maintenance:
Current:
2013
Budgeted Amounts Actual
Original Final Amounts
Variance with
Final Budget
Statement 10
Page 4 of 6
2012
Actual
Amounts
$562,000
$562,000
$548,975
$13,025
$522,336
1,300
1,300
801
499
1,031
30,600
30,600
33,444
(2,844)
30,001
593,900
593,900
583,220
10,680
553,368
Personal services
687,200
687,200
691,097
(3,897)
666,594
Materials and supplies
129,600
129,600
144,662
(15,062)
117,644
Contractual services
30,700
30,700
27,675
3,025
27,125
Total street maintenance
847,500
847,500
863,434
(15,934)
811,363
Street lighting:
Current:
Materials and supplies
2,000
2,000
4,070
(2,070)
2,791
Contractual services
356,100
356,100
347,149
8,951
353,724
Total street lighting
358,100
358,100
351,219
6,881
356,515
City garage:
Current:
141,100
141,100
140,492
608
139,839
Personal services
274,200
274,200
281,424
(7,224)
261,253
Materials and supplies
174,400
174,400
191,268
(16,868)
199,481
Contractual services
84,600
84,600
66,386
18,214
57,023
Capital outlay
-
-
-
-
11,145
Total City garage
533,200
533,200
539,078
(5,878)
528,902
Total public works
Parks and recreation:
Parks and recreation commission:
2,332,700 2,332,700 2,336,951 (4,251) 2,250,148
Current:
Materials and supplies
100
100
-
100
-
Contractual services
2,700
2,700
2,842
(142)
2,218
Total parks and recreation commission
2,800
2,800
2,842
(42)
2,218
Parks and recreation administration:
Current:
Personal services
133,100
133,100
135,604
(2,504)
132,345
Materials and supplies
600
600
105
495
49
Contractual services
7,400
7,400
4,783
2,617
7,445
Total parks and recreation
administration
141,100
141,100
140,492
608
139,839
Recreation center:
Current:
Personal services
212,800
212,800
204,218
8,582
200,561
Materials and supplies
44,000
44,000
23,930
20,070
31,747
Contractual services
82,800
82,800
93,171
(10,371)
79,170
Total recreation center
339,600
339,600
321,319
18,281
311,478
85
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
86
2013
2012
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services
$50,400
$50,400
$47,407
$2,993
$45,635
Materials and supplies
3,300
3,300
2,340
960
3,111
Contractual services
19,900
19,900
20,983
(1,083)
23,714
Total senior citizen center
73,600
73,600
70,730
2,870
72,460
Recreation program:
Current:
Personal services
178,600
178,600
178,356
244
165,726
Materials and supplies
19,100
19,100
23,844
(4,744)
19,953
Contractual services
98,700
98,700
97,725
975
85,234
Total recreation program
296,400
296,400
299,925
(3,525)
270,913
Self- supporting programs:
Current:
Personal services
32,900
32,900
32,939
(39)
32,303
Materials and supplies
7,700
7,700
2,907
4,793
7,293
Contractual services
27,000
27,000
21,645
5,355
20,667
Total self - supporting programs
67,600
67,600
57,491
10,109
60,263
Lake Ann Park operations:
Current:
Personal services
8,700
8,700
8,117
583
6,772
Materials and supplies
8,200
8,200
14,328
(6,128)
10,963
Contractual services
44,900
44,900
40,952
3,948
52,213
Total Lake Ann Park operations
61,800
61,800
63,397
(1,597)
69,948
Park maintenance:
Current:
Personal services
767,700
767,700
807,849
(40,149)
760,754
Materials and supplies
83,900
83,900
80,491
3,409
81,679
Contractual services
90,300
90,300
85,916
4,384
105,567
Total park maintenance
941,900
941,900
974,256
(32,356)
948,000
Downtown maintenance:
Current:
Contractual services
-
-
2,641
(2,641)
4,169
Recreation sports:
Current:
Personal services
13,200
13,200
16,931
(3,731)
12,371
Materials and supplies
8,800
8,800
8,275
525
8,590
Contractual services
300
300
325
(25)
254
Total recreation sports
22,300
22,300
25,531
(3,231)
21,215
Total parks and recreation
1,947,100
1,947,100
1,958,624
(11,524)
1,900,503
86
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Expenditures: (continued)
Community development:
Planning commission:
Current:
Personal services
Materials and supplies
Contractual services
Total planning commission
Planning administration:
Current:
Personal services
Materials and supplies
Contractual services
Total planning administration
Senior facility commission:
Current:
Personal services
Materials and supplies
Contractual services
Total senior facility commission
Total community development
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
Note A BUDGETARY INFORMATION
2013
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Statement 10
Page 6 of 6
2012
Actual
Amounts
$ -
$ -
$88
($88)
$3,326
200
200
-
200
-
4,000
4,000
3,196
804
2,664
4,200
4,200
3,284
916
5,990
370,200
370,200
374,345
(4,145)
369,531
400
400
90
310
736
12,000
12,000
3,941
8,059
15,352
382,600
382,600
378,376
4,224
385,619
23,400
23,400
23,820
(420)
23,254
-
-
-
-
31
9,700
9,700
8,641
1,059
9,183
33,100
33,100
32,461
639
32,468
419,900
419,900
414,121
5,779
424,077
9,747,400
9,747,400
9,731,013
16,387
9,404,514
0
0
417,466
417,466
617,919
(617,919) (617,919) (421,539)
$0 $0 (200,453) ($200,453)
5,491,778
$5,291,325
196,380
5,295,398
$5,491,778
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United
States of America. The legal level of budgetary control is at the department level for the General Fund.
87
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2013
Unfunded
*Using the projected unit credit actuarial pay cost method.
Note: the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior to or since
the first valuation.
88
Actuarial
Actuarial
Actuarial
UAAL as a
Actuarial
Value of
Accrued
Accrued
Funded
Covered
Percentage of
Valuation
Assets
Liability (AAL)*
Liability (UAAL)
Ratio
Payroll
Covered Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
( (b -a) / c)
January 1, 2008
$0
$52,268
$52,268
0.0%
$4,180,235
1.3%
January 1, 2011
$0
$89,875
$89,875
0.0%
$4,299,466
2.1%
*Using the projected unit credit actuarial pay cost method.
Note: the first OPEB actuarial valuation was conducted as of January 1, 2008. There is no data available prior to or since
the first valuation.
88
COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL
STATEMENTS AND SCHEDULES
89
NONMAJOR GOVERNMENTAL FUNDS
90
SPECIAL REVENUE FUNDS
The Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted 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).
91
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Contract for deed receivable
Special assessments receivable
Special Debt Capital
Revenue Service Project
Statement 11
Totals
Nonmajor
Governmental Funds
2013 2012
$248,215 $2,221,522
$5,728,008
$8,197,745
$8,668,285
1,008 6,678
22,382
30,068
36,771
- -
876,741
876,741
590,919
54,429 -
54,679
109,108
129,459
- 7,031
7,823
14,854
13,609
- -
-
-
463
- -
1,372,668
1,372,668
1,416,079
- 59,934
645,785
705,719
810,646
Total assets $303,652 $2,295,165 $8,708,086 $11,306,903 $11,666,231
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Interfund payable
Salaries payable
Contracts payable
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows
of resources, and fund balance
$5,994
$ -
$180,676
$186,670
$215,306
-
-
1,131
1,131
616,036
-
-
559,515
559,515
646,856
2,435
-
-
2,435
1,880
-
-
160,942
160,942
1,670
-
526,449
526,449
477,562
8,429
0
1,428,713
1,437,142
1,959,310
-
59,934
646,376
706,310
810,646
-
-
1,327,068
1,327,068
1,373,146
165,838
1,459,634
3,062,565
4,688,037
4,231,657
129,385
775,597
2,802,879
3,707,861
3,938,328
-
-
(559,515)
(559,515)
(646,856)
295,223
2,235,231
6,632,997
9,163,451
8,896,275
$303,652 $2,295,165 $8,708,086 $11,306,903 $11,666,231
92
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 12
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Investment earnings
Net change in fair value of investments
Contributions and donations
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Debt service:
Principal
Interest and paying agent fees
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Special item: Sale of old public works building
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
Special Debt Capital
Revenue Service Project
Totals
Nonmajor
Governmental Funds
2013 2012
$ -
$1,038,510
$1,000,000
$2,038,510
$1,945,448
-
-
545,906
545,906
533,011
-
-
789,000
789,000
278,033
-
-
1,385,423
1,385,423
407,736
-
23,614
131,329
154,943
309,662
211,835
7,610
64,925
284,370
299,635
3,131
15,384
46,300
64,815
146,105
(2,573)
(17,043)
(57,128)
(76,744)
(29,190)
13,514
-
-
13,514
15,208
45
-
152,237
152,282
186,454
-
-
73,003
73,003
87,083
225,952
1,068,075
4,130,995
5,425,022
4,179,185
153,843
2,585
167,869
324,297
410,080
12,257
-
96,215
108,472
100,604
-
-
429,619
429,619
453,236
-
-
43,980
43,980
254,211
-
-
108,417
108,417
218,326
9,041
-
78,666
87,707
75,226
-
-
74,144
74,144
39,314
-
-
1,882,852
1,882,852
433,091
-
-
418,333
418,333
1,310,366
-
620,000
-
620,000
4,505,000
-
434,817
-
434,817
636,056
175,141
1,057,402
3,300,095
4,532,638
8,435,510
50,811
10,673
830,900
892,384
(4,256,325)
123,574 504,160 627,734 110,737
(774,620) (11,779) (466,543) (1,252,942) (2,572,208)
(774,620) 111,795 37,617 (625,208) (2,461,471)
1,475,000
(723,809) 122,468 868,517 267,176 (5,242,796)
1,019,032 2,112,763 5,764,480 8,896,275 14,139,071
$295,223 $2,235,231 $6,632,997 $9,163,451 $8,896,275
93
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94
NONMAJOR SPECIAL REVENUE FUNDS
Special Revenue Funds are established to account for taxes and other revenues set aside for a
particular purpose. Revenues are recognized in the accounting period in which they become
available and measurable. Expenditures are recognized in the accounting period in which the
related liability is incurred.
Contribution Fund — This fund accounts for the proceeds that the City receives from
charitable gambling. The City collects 10% of the net proceeds from a pull -tab operation
in the City. By state statute, the fund may only be used for equipment and training for the
City's fire department.
CATV Fund — Under the terms of the franchise agreement with Triax Cablevision, the City
is to receive 5% of the revenues derived from cable television sales within the City. These
monies are dedicated solely to improving public broadcasting capabilities, studio
improvements, and other capital expenditures improving the overall cable system.
Economic Development Authority — This fund is used to account for all activities of the
Chanhassen Economic Development Authority.
95
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Assets:
Cash and investments
Accrued interest receivable
Accounts receivable - net
Prepaid items
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Total liabilities
Fund balance:
Nonspendable
Restricted
Assigned
Total fund balance
Total liabilities and fund balance
Statement 13
201
Contribution 210 CATV Total Nonmajor Special Revenue
Fund Fund Funds
2013 2012
$36,288 $211,927 $248,215 $964,288
166 842 1,008 4,740
691 53,738 54,429 55,477
- - - 463
$37,145 $266,507 $303,652 $1,024,968
$ - $5,994
2,435
n
$5,994 $4,056
2,435 1,880
8,429 0,4L7 J,yJO
- - - 463
37,145 128,693 165,838 142,747
- 129,385 129,385 875,822
37,145 258,078 295,223 1,019,032
$37,145 $266,507 $303,652 $1,024,968
96
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES Statement 14
AND CHANGES IN FUND BALANCES
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Revenues:
Franchise and PEG fees
Investment earnings
Net change in fair value of investments
Contributions and donations
Refunds and reimbursements
Total revenues
Expenditures:
Current:
Personal services
Materials and supplies
Contractual services
Capital outlay:
General government
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
201
88,770
220 Economic
39,195
- 64,048
Contribution
210 CATV
Development
Total Nonmajor Special Revenue
Fund
Fund
Authority
Funds
2013
2012
$ -
$211,835
$ -
$211,835
$218,535
293
(1,782)
4,620
3,131
24,340
(424)
(2,149)
-
(2,573)
(3,108)
13,514
-
-
13,514
15,208
-
45
45
47
13,383
207,949
4,620
225,952
255,022
94,481
- 7,571
12,257 51,791
- 9,041
12,257 162,884
94,481
88,770
- 7,571
39,195
- 64,048
86,643
- 9,041
12,106
0 175,141
226,714
1,126 45,065 4,620 50,811 28,308
- - (774,620) (774,620) (1,712,590)
0 0 (774,620) (774,620) (1,712,590)
1,126 45,065 (770,000) (723,809) (1,684,282)
36,019 213,013 770,000 1,019,032 2,703,314
$37,145 $258,078 $0 $295,223 $1,019,032
97
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98
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.
General Obligation Bonds — 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.
Tax Increment Bonds — These funds are used to account for the accumulation of resources for
payment of tax increment general obligation bonds and the interest thereon.
General Improvement Bonds — These funds are used to account for the accumulation of
resources for payment of principal and interest on general obligation improvement bonds.
Revenue Bonds — These funds are used to account for the bonds issued by the EDA that are
repaid through a lease - purchase agreement with the City.
99
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 15
NONMAJOR DEBT SERVICE FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Liabilities:
Deferred inflows of resources:
Unavailable revenue
49,698
10,236
367 2008A
77,520
300
Fund balance:
G.O. Public
369 2010A
Restricted
Permanent
-
Works
G.O. Library
Assigned
723,804
51,793
Revolving
360 2004A
Facility
Refunding
Totals Nonmajor Debt
877,588 582,046 2,235,231
Debt
G.O. Bonds
Bonds
Bonds
Service Funds
Total liabilities, deferred inflows
2013
2012
Assets:
$877,588 $582,046 $2,295,165
$2,190,283
Cash and investments
$720,851
$51,630
$871,261
$577,780
$2,221,522
$2,099,930
Accrued interest receivable
2,953
163
2,295
1,267
6,678
6,149
Due from other funds
-
-
-
-
-
-
Property taxes receivable
-
-
4,032
2,999
7,031
6,684
Special assessments receivable
49,698
10,236
-
-
59,934
77,520
Total assets
$773,502
$62,029
$877,588
$582,046
$2,295,165
$2,190,283
Liabilities, Deferred Inflows of
Resources, and Fund Balance
Liabilities:
Deferred inflows of resources:
Unavailable revenue
49,698
10,236
- - 59,934
77,520
Fund balance:
Restricted
-
-
877,588 582,046 1,459,634
1,416,007
Assigned
723,804
51,793
- - 775,597
696,756
Total fund balance
723,804
51,793
877,588 582,046 2,235,231
2,112,763
Total liabilities, deferred inflows
of resources, and fund balance
$773,502
$62,029
$877,588 $582,046 $2,295,165
$2,190,283
100
CITY OF CHANHASSEN, NIINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 16
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Expenditures:
Current:
General government -
Debt service:
Principal
Interest and paying agent fees
Total expenditures 0
Revenues over (under) expenditures 15,269
Other financing sources:
- - -
2,585
3522000
2,585
3622004C
3672008A
3692010A
285,000
620,000
4,505,000
300
Public
97,405
Taxable
G.O. Public
G.O.
563,202
382,405
1,057,402
Permanent
Project
360 2004A
G.O. T.I.
Works
Library
696,756
11,836 36,147
-
Revolving
Revenue
G.O.
Refunding
Facility
Refunding
Totals Nonmajor Debt
$2,112,763
Debt
Bonds
Bonds
Bonds
Bonds
Bonds
Service Funds
2013
2012
Revenues:
General property taxes
$ -
$
$ -
$ -
$593,200
$445,310
$1,038,510
$945,448
Special assessments
8,033
-
15,581
-
-
-
23,614
178,334
Charges for services
7,610
-
-
-
-
-
7,610
7,388
Investment earnings
7,038
67
481
-
5,147
2,651
15,384
67,219
Net change in fair value of investments 7,412
(124)
(416)
-
5,857)
(3,234)
(17,043)
(7,261)
Total revenues
15,269
57
15,646
0
592,490
444,727
1,068,075
1,191,128
Expenditures:
Current:
General government -
Debt service:
Principal
Interest and paying agent fees
Total expenditures 0
Revenues over (under) expenditures 15,269
Other financing sources:
- - -
2,585
-
2,585
6,000
- - 70,000
265,000
285,000
620,000
4,505,000
- - 41,795
295,617
97,405
434,817
636,056
0 0 111,795
563,202
382,405
1,057,402
5,147,056
(57) 15,646 (111,795)
29,288
62,322
10,673
(3,955,928)
Transfer in
11,779
-
111,795
- 123,574
110,270
Transfer out
-
(11,779) -
-
- (11,779)
-
Total other financing sources (uses)
11,779
11,779 -
111,795
- 111,795
110,270
Net change in fund balance
27,048
(11,836) 15,646
0
29,288 62,322 122,468
(3,845,658)
Fund balance - January 1
696,756
11,836 36,147
-
848,300 519,724 2,112,763
5,958,421
Fund balance - December 31
$723,804
$0 $51,793
$0
$877,588 $582,046 $2,235,231
$2,112,763
101
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102
NONMAJOR CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for the construction and financing of large capital
projects. Revenues and expenditures are recognized on the modified accrual basis. Revenues
are recognized in the accounting period in which they become available and measurable.
Expenditures are recognized in the accounting period in which they are incurred.
Most capital projects are singular in purpose and their revenues /expenditures cannot be used
for subsidizing any other operating fund. In each of these cases, bonds or other revenues
received can only be used for these specific activities.
The following Capital Project Funds differ in that several of the expenditure categories
represent recurring types of costs, i.e., personal services, repair and maintenance of utilities,
and/or recurring land improvements.
400 Capital Replacement Fund — Accounts for monies collected from developers for inspection
and administrative services for projects.
410 Park Acquisition and Development — Accounts for park dedication fees as required by the
City ordinance. These funds are then utilized to finance park and trail improvements identified
in the park and recreation section of the City's comprehensive plan.
413 Transit Station Assessment Fund — Accounts for the interfund loan from the Water Fund to
fund costs associated with the redevelopment of the Dinner Theater Transit Station in TIF #10
and for the repayment of the special assessment to repay those costs.
420 Street Pavement Management — Accounts for sealcoating costs on local streets.
422 Old Public Works Building — Accounts for the sale of the old public works building and the
related contract for deed receivable.
461 Gateway Place TIF District, 491 TIF #4 Entertainment. 494 TIF #5 North Bay, and 498
TIF #8 Presbyterian Homes — Accounts for financing improvements in tax increment financing
districts.
600 Special Assessment Projects — Accounts for the construction or projects financed by
special assessments.
603 Lyman Blvd Improvements — Accounts for the street and utility improvement of Lyman
Blvd.
103
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Liabilities, Deferred inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Interfund loan payable
Contracts payable
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
$46,867 $24,853 $ - $38,646 $23,354 $9,137
1,131 - - - - -
- - 559,515 - - -
6,072 - 154,870 - -
- - - 526,449 - -
47,998 30,925 559,515 719,965 23,354 9,137
591 - 645,785 - -
- - - 1,327,068 -
- 1,714,972 - - - 5,225
1,537,510 - - 514,784 191,468 -
- (559,515) - - -
1,537,510 1,714,972 (559,515) 514,784 1,518,536 5,225
Total liabilities, deferred inflows
of resources, and fund balance $1,586,099 $1,745,897 $645,785 $1,234,749 $1,541,890 $14,362
104
410 Park
413 Transit
422 Old
400 Capital
Acquisition
Station
420 Street
Public
461 Gateway
Replacement
and
Assessment
Pavement
Works
Place TIF
Fund
Development
Fund
Management
Building
District
Assets:
Cash and investments
$1,524,077
$1,738,436
$ -
$351,007
$168,686
$14,331
Accrued interest receivable
4,997
7,461
-
2,547
536
31
Due from other governmental units
-
-
-
876,741
-
-
Accounts receivable - net
51,585
-
-
3,094
-
-
Property taxes receivable
5,440
-
-
1,360
-
-
Contract for deed receivable
-
-
-
-
1,372,668
-
Special assessments receivable
-
-
645,785
-
-
-
Total assets
$1,586,099
$1,745,897
$645,785
$1,234,749
$1,541,890
$14,362
Liabilities, Deferred inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Interfund loan payable
Contracts payable
Unearned revenue
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
$46,867 $24,853 $ - $38,646 $23,354 $9,137
1,131 - - - - -
- - 559,515 - - -
6,072 - 154,870 - -
- - - 526,449 - -
47,998 30,925 559,515 719,965 23,354 9,137
591 - 645,785 - -
- - - 1,327,068 -
- 1,714,972 - - - 5,225
1,537,510 - - 514,784 191,468 -
- (559,515) - - -
1,537,510 1,714,972 (559,515) 514,784 1,518,536 5,225
Total liabilities, deferred inflows
of resources, and fund balance $1,586,099 $1,745,897 $645,785 $1,234,749 $1,541,890 $14,362
104
Statement 17
$ - $37,819 $ - $ - $ - $180,676 $211,250
- - - - 1,131 616,036
559,515 646,856
160,942 1,670
- - - - 526,449 477,562
0 37,819 0 0 0 1,428,713 1,953,374
646,376 733,126
- - - - - 1,327,068 1,372,683
636,306 134,324 571,738 - - 3,062,565 2,672,903
- - - 79,150 479,967 2,802,879 2,365,750
- - - - - (559,515) (646,856)
636,306 134,324 571,738 79,150 479,967 6,632,997 5,764,480
$636,306 $172,143 $571,738 $79,150 $479,967 $8,708,086 $8,450,980
105
603 Lyman
498 TIF #8
600 Special
Blvd
491 TIF #4
494 TIF #5
Presbyterian
Assessment
Improvements
Totals Nonmajor Capital Project
Entertainment
North Bay
Homes
Projects
06 -03
Funds
2013
2012
$633,866
$170,536
$570,110
$78,824
$478,135
$5,728,008
$5,604,067
2,440
584
1,628
326
1,832
22,382
25,882
-
-
-
-
-
876,741
590,919
-
-
-
-
-
54,679
73,982
-
1,023
-
-
-
7,823
6,925
-
-
-
-
-
1,372,668
1,416,079
-
-
-
-
-
645,785
733,126
$636,306
$172,143
$571,738
$79,150
$479,967
$8,708,086
$8,450,980
$ - $37,819 $ - $ - $ - $180,676 $211,250
- - - - 1,131 616,036
559,515 646,856
160,942 1,670
- - - - 526,449 477,562
0 37,819 0 0 0 1,428,713 1,953,374
646,376 733,126
- - - - - 1,327,068 1,372,683
636,306 134,324 571,738 - - 3,062,565 2,672,903
- - - 79,150 479,967 2,802,879 2,365,750
- - - - - (559,515) (646,856)
636,306 134,324 571,738 79,150 479,967 6,632,997 5,764,480
$636,306 $172,143 $571,738 $79,150 $479,967 $8,708,086 $8,450,980
105
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106
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 18
CHANGES IN FUND BALANCES Page 1 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Investment earnings
Net change in fair value of investments
Refunds and reimbursements
Other
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Total expenditures
167,869 - - -
96,215 - - -
19,535 - - 409,786
18,984 24,996 - -
78,666 - - -
74,144 - - -
278,552 - - 1,604,300
21,749 396,584 - -
755,714 421,580 0 2,014,086
Revenues over (under) expenditures 77,745 375,614 131329 (305,330)
Other financing sources (uses):
Transfer in 150,000 - - 354,160
Transfer out - (310,760) (43,988) -
Total other financing sources (uses) 150,000 (310,760) (43,988) 354,160
Special item: Sale of old public works building - - - -
Net change in fund balance
227,745
413 Transit
87,341
400 Capital
410 Park
Station
420 Street
Replacement
Acquisition and
Assessment
Pavement
Fund
Development
Fund
Management
$800,000
$ -
$ -
$200,000
-
789,000
-
-
-
-
-
1,385,423
-
-
131,329
-
22,326
-
-
-
8,106
13,958
-
6,560
(12,754)
(19,044)
-
(6,501)
12,581
13,280
-
123,274
3,200
-
-
-
833,459
797,194
131,329
1,708,756
167,869 - - -
96,215 - - -
19,535 - - 409,786
18,984 24,996 - -
78,666 - - -
74,144 - - -
278,552 - - 1,604,300
21,749 396,584 - -
755,714 421,580 0 2,014,086
Revenues over (under) expenditures 77,745 375,614 131329 (305,330)
Other financing sources (uses):
Transfer in 150,000 - - 354,160
Transfer out - (310,760) (43,988) -
Total other financing sources (uses) 150,000 (310,760) (43,988) 354,160
Special item: Sale of old public works building - - - -
Net change in fund balance
227,745
64,854
87,341
48,830
Fund balance - January 1
1,309,765
1,650,118
(646,856)
465,954
Fund balance - December 31
$1,537,510
$1,714,972
($559,515)
$514,784
107
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2013
With Comparative Totals For The Year Ended December 31, 2012
422 Old Public
Works Building
Revenues:
General property taxes
$ -
Tax increment collections
-
Licenses and permits
-
Intergovernmental
-
Special assessments
-
Charges for services
-
Investment earnings
1,663
Net change in fair value of investments
(1,369)
Refunds and reimbursements
-
Other
69,803
Total revenues
70,097
Expenditures:
Current:
General government
Public safety
Public works
Parks and recreation
Community development
Capital outlay:
General government
Public safety
Public works
Parks and recreation
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Special item: Sale of old public works building
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
461 Gateway Place
TIF District
20,304
76
(78)
20,302
491 TIF #4
Entertainment
206,745
5,643
(6,229)
206,159
298 -
19,308 8,913
298 19,308 8,913
69,799 994 197,246
(111,795)
0 0 (111,795)
69,799 994 85,451
1,448,737 4,231 550,855
$1,518,536 $5,225 $636,306
108
Statement 18
Page 2 of 2
603 Lyman
498 TIF #8 600 Special Blvd
494 TIF #5 North Presbyterian Assessment Improvements
Bay Homes Projects 06 -03 Totals Nonmajor Capital Project Funds
2013 2012
$ -
$ -
$ -
$ -
$1,000,000
$1,000,000
77,223
241,634
-
-
545,906
533,011
-
-
-
-
789,000
278,033
-
-
-
-
1,385,423
407,736
-
-
-
131,329
131,328
-
-
-
42,599
64,925
73,712
848
4,499
715
4,232
46,300
54,546
(1,491)
(4,154)
(832)
(4,676)
(57,128)
(18,821)
-
-
-
3,102
152,237
186,454
-
-
-
-
73,003
87,036
76,580
241,979
(117)
45,257
4,130,995
2,733,035
-
-
-
-
167,869
220,302
-
-
-
-
96,215
69,774
-
-
-
-
429,619
453,236
-
-
-
-
43,980
254,211
79,636
560
-
-
108,417
218,326
-
-
-
-
78,666
63,120
-
-
-
-
74,144
39,314
-
-
-
-
1,882,852
433,091
-
-
-
-
418,333
1,310,366
79,636
560
0
0
3,300,095
3,061,740
(3,056)
241,419
(117)
45,257
830,900
(328,705)
-
-
-
-
504,160
467
-
-
-
-
(466,543)
(859,618)
0
0
0
0
37,617
(859,151)
-
-
-
-
-
1,475,000
(3,056)
241,419
(117)
45,257
868,517
287,144
137,380
330,319
79,267
434,710
5,764,480
5,477,336
$134,324
$571,738
$79,150
$479,967
$6,632,997
$5,764,480
109
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CONTRIBUTION FUND Statement 19
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
2013
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
2012
Actual
Amounts
Revenues:
Investment earnings
$1,000 $1,000 $293
($707)
$569
Net change in fair value of investments
- - (424)
(424)
(159)
Contributions and donations
22,000 22,000 13,514
(8,486)
15,208
Total revenues
23,000 23,000 13,383
(9,617)
15,618
Expenditures:
Current:
Contractual services
Revenues over (under) expenditures
Fund balance - January 1
Fund balance - December 31
30,000 30,000 12,257 17,743 30,830
($7,000) ($7,000)
110
1,126 $8,126
36,019
$37,145
(15,212)
51,231
$36,019
CITY OF CHANHASSEN, MINNESOTA
SPECIAL REVENUE FUND - CATV Statement 20
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
For The Year Ended December 31, 2013
With Comparative Actual Amounts For The Year Ended December 31, 2012
Revenues:
Franchise and PEG fees
Investment earnings
Net change in fair value of investments
Other
Total revenues
Expenditures:
Current:
Personal services
Materials and supplies
Contractual services
Capital outlay
Total expenditures
Revenues over expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
$115,400 $115,400
- - (1,300,000)
45,065 ($70,335) (1,269,070)
213,013
$258,078
1,482,083
$213,013
2013
2012
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
$225,000
$225,000
$211,835
($13,165)
$218,535
2,000
2,000
(1,782)
(3,782)
11,181
-
-
(2,149)
(2,149)
(2,949)
-
-
45
45
47
227,000
227,000
207,949
(19,051)
226,814
93,500
93,500
94,481
(981)
88,770
8,000
8,000
7,571
429
39,195
10,100
10,100
51,791
(41,691)
55,813
-
-
9,041
(9,041)
12,106
111,600
111,600
162,884
(51,284)
195,884
115,400
115,400
45,065
(70,335)
30,930
$115,400 $115,400
- - (1,300,000)
45,065 ($70,335) (1,269,070)
213,013
$258,078
1,482,083
$213,013
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112
FIDUCIARY FUNDS
Fiduciary Funds have been established to account for cash or other assets held by the City as a
trustee or agent for others. Revenues are recognized in the accounting period in which they
become available and measurable. Expenditures are recognized in the accounting period in
which the related liability is incurred.
Fiduciary Funds are custodial in nature (assets equal liabilities) and do not involve
measurement of the results of operations.
Escrow Fund — This fund is used to account for various deposits required by the City.
Moon Valley Restoration Fund — This is an escrow fund which will be used to finance
restoration to a gravel pit when it ceases operation.
113
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF NET POSITION
AGENCY FUNDS
December 31, 2013
With Comparative Totals For December 31, 2012
Statement 21
913 Moon
Valley
815 Escrow Restoration
Fund Fund Totals
2013 2012
Assets:
Cash and investments $1,339,715 $86,478 $1,426,193 $1,093,722
Liabilities:
Escrow deposits payable $1,339,715 $86,478 $1,426,193 $1,093,722
114
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2013
Statement 22
Totals - All Agency Funds
Assets:
Cash and investments $1,093,722 $937,148 $604,677 $1,426,193
Liabilities:
Escrow deposits payable $1,093,722 $937,148 $604,677 $1,426,193
115
Balance
Balance
01/01/13
Additions
Deletions
12/31/13
Escrow Fund
Assets:
Cash and investments
$1,007,416
$936,976
$604,677
$1,339,715
Liabilities:
Escrow deposits payable
$1,007,416
$936,976
$604,677
$1,339,715
Moon Valley Restoration Fund
Assets:
Cash and investments
$86,306
$172
$ -
$86,478
Liabilities:
Escrow deposits payable
$86,306
$172
$ -
$86,478
Totals - All Agency Funds
Assets:
Cash and investments $1,093,722 $937,148 $604,677 $1,426,193
Liabilities:
Escrow deposits payable $1,093,722 $937,148 $604,677 $1,426,193
115
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116
III. STATISTICAL SECTION (UNAUDITED)
117
- This page intentionally left blank -
118
III. STATISTICAL SECTION (UNAUDITED)
This part of the City of Chanhassen, Minnesota's Comprehensive Annual 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 City of
Chanhassen, Minnesota's overall financial health.
Contents PaLres
Financial Trends
These tables contain trend information to help the reader understand how the 120 -128
City's financial performance and well -being have changed over time.
Revenue Capacity
These tables contain information to help the reader assess the City's most 130 -135
significant local revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the 136 -141
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future.
Demographic and Economic
These tables offer demographic and economic indicators to help the reader 142 -143
understand the environment within which the City's financial activities take
place.
Operating Information
These tables contain service and infrastructure data to help the reader understand 144 -148
how the information in the City's financial report relates to the services the City
provides and the activities it performs.
Sources: Unless otherwise noted, the information in these tables is derived from the
comprehensive financial reports for the relevant year.
119
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental activities:
Net investment in capital assets
Restricted:
Debt service
Park improvements
Tax increment purposes
Other purposes
Unrestricted
Total governmental activities net position
Business -type activities:
Net investment in capital assets
Unrestricted
Total business -type activities net position
Primary government:
Net investment in capital assets
Restricted:
Debt service
Park improvements
Tax increment purposes
Other purposes
Unrestricted
Total primary government net position
2004 2005 2006 2007
$77,583,392 $72,418,684 $70,216,944 $68,982,379
5,762,414
10,174,502
7,687,155
11,047,062
630,566
1,049,047
1,063,589
797,064
10,632,184
11,239,658
16,220,834
14,631,166
$94,608,556
$94,881,891
$95,188,522
$95,457,671
$38,888,555
$37,479,967
$47,807,323
$52,502,257
21,908,224
23,767,122
15,039,021
17,292,106
$60,796,779
$61,247,089
$62,846,344
$69,794,363
$116,471,947 $109,898,651 $118,024,267 $121,484,636
5,762,414
10,174,502
7,687,155
11,047,062
630,566
1,049,047
1,063,589
797,064
32,540,408
35,006,780
31,259,855
31,923,272
$155,405,335
$156,128,980
$158,034,866
$165,252,034
Note: GASB 65 was implemented in 2013. Unamortized bond issuance costs are no longer included within net position.
Net position for years prior to 2013 was not restated.
120
Table 1
2008
2009
2010
2011
2012
2013
$70,611,368
$72,106,198
$73,272,450
$70,866,708
$69,987,563
$71,260,946
12,165,653
6,461,780
9,655,951
5,709,727
5,905,553
6,595,927
-
-
2,088,246
2,516,027
1,650,118
1,714,972
621,915
840,857
693,309
812,096
1,022,785
1,347,593
-
-
121,137
168,147
142,747
165,838
15,171,391
14,421,042
8,348,968
12,888,980
14,544,111
13,724,705
$98,570,327
$93,829,877
$94,180,061
$92,961,685
$93,252,877
$94,809,981
$55,541,752
$55,496,919
$57,028,340
$55,430,138
$54,475,353
$52,541,451
13,117,323
12,129,049
10,259,836
9,484,947
10,631,342
11,391,338
$68,659,075
$67,625,968
$67,288,176
$64,915,085
$65,106,695
$63,932,789
$126,153,120
$127,603,117
$130,300,790
$126,296,846
$124,462,916
$123,802,397
12,165,653
6,461,780
9,655,951
5,709,727
5,905,553
6,595,927
-
-
2,088,246
2,516,027
1,650,118
1,714,972
621,915
840,857
693,309
812,096
1,022,785
1,347,593
-
-
121,137
168,147
142,747
165,838
28,288,714
26,550,091
18,608,804
22,373,927
25,175,453
25,116,043
$167,229,402
$161,455,845
$161,468,237
$157,876,770
$158,359,572
$158,742,770
121
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
Governmental activities:
General government
Public safety
Public works
Parks and recreation
Community development
Interest on long -term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Surface water management
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities:
Charges for services:
Licenses and permits
Charges for services
Fines and forfeits
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Surface water management
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
2004 2005 2006 2007
$2,338,485
$4,518,355
$2,380,103
$2,439,716
2,618,307
2,653,304
2,851,926
3,098,068
4,955,598
4,915,435
7,722,466
7,010,981
2,674,954
2,867,364
2,918,645
3,023,032
2,027,713
595,878
868,749
1,052,104
822,047
505,367
751,964
835,059
15,437,104
16,055,703
17,493,853
17,458,960
1,985,908
2,656,381
2,754,201
3,112,575
2,686,146
2,719,156
3,069,069
3,177,366
957,084
1,039,721
1,317,089
1,238,914
5,629,138
6,415,258
7,140,359
7,528,855
$21,066,242 $22,470,961 $24,634,212 $24,987,815
$1,892,579
$2,166,022
$3,612,021
$2,171,558
997,114
1,196,103
1,218,816
1,132,448
61,801
104,962
162,946
145,682
370,090
361,093
671,674
452,798
2,633,916
5,080,512
2,506,822
7,464,697
5,955,500
8,908,692
8,172,279
11,367,183
1,656,911
1,703,501
2,111,230
2,461,205
1,748,929
1,905,206
2,008,356
2,186,622
265,090
299,445
424,702
452,148
6,381
1,620
539
45,172
3,528,270
1,961,122
2,501,598
3,340,598
7,205,581
5,870,894
7,046,425
8,485,745
Total primary government program revenues $13,161,081 $14,779,586 $15,218,704 $19,852,928
122
2008
$2,469,055
3,062,941
6,220,816
3,025,987
704,979
652,015
16,135,793
3,234,139
3,072,588
1,121,197
7,427,924
$23,563,717
$1,810,545
1,115,903
124,633
346,023
3,221,636
6,618,740
2,408,379
2,187,209
479,318
36,350
1,527,624
6,638,880
$13,257,620
2009
$2,597,147
3,158,465
9,123,165
3,663,124
628,339
1,031,567
20,201,807
3,311,129
3,276,042
1,093,165
7,680,336
$27,882,143
$1,085,754
1,064,173
122,496
363,540
1,265,287
3,901,250
2,689,170
2,378,111
512,761
5,332
1,684,982
7,270,356
$11,171,606
2010
$2,898,608
3,227,396
6,308,023
3,046,718
879,048
880,384
17,240,177
3,443,583
3,252,510
1,202,556
7,898,649
$25,138,826
$1,331,374
1,189,560
123,609
414,654
4,175,655
7,234,852
2,424,634
2,365,358
538,688
2,984
1,593,289
6,924,953
$14,159,805
123
2011
$2,565,486
3,061,122
8,607,534
2,921,593
799,379
838,421
18,793,535
3,581,955
3,317,329
1,173,115
8,072,399
$26,865,934
$1,381,326
1,047,726
126,571
692,428
1,646,573
4,894,624
2,611,327
2,297,677
534,473
12,589
1,086,655
6,542,721
$11,437,345
2012
$2,690,853
3,176,441
7,743,147
3,114,340
646,262
725,881
18,096,924
3,646,787
3,235,324
1,347,345
8,229,456
$26,326,380
$1,595,358
1,394,356
119,997
404,663
2,953,496
6,467,870
3,146,886
2,434,370
590,323
121,925
1,861,689
8,155,193
$14,623,063
Table 2
Page 1 of 2
2013
$2,630,405
3,313,694
14,224,453
2,919,183
523,651
588,352
24,199,738
4,702,686
3,548,200
1,334,173
9,585,059
$33,784,797
$2,113,770
1,396,068
99,984
472,298
10,718,999
14,801,119
2,829,226
2,358,854
615,896
63,112
2,852,437
8,719,525
$23,520,644
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Net (expense) revenue:
Governmental activities
Business -type activities
Total primary government net (expense) revenue
General revenues and other changes in net position
Governmental activities:
Property taxes
Tax increment collections
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Special item - sale of public works building
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Miscellaneous
Transfers
Total business -type activities
Total primary government
Change in net position:
Governmental activities
Business -type activities
Total primary government
2004 2005 2006 2007
($9,481,604) ($7,147,011) ($9,321,574) ($6,091,777)
1,576,443 (544,364) (93,934) 956,890
(7,905,161) (7,691,375) (9,415,508) (5,134,887)
8,398,790
9,451,141
9,165,278
9,419,763
4,623,927
675,117
315,398
420,526
55,879
45,455
28,592
189,616
164,712
387,370
905,930
1,397,746
222,642
93,792
34,644
-
540,646
23,795
-
10,806
(96,195) (481,824) (821,637) (5,077,531)
13,910,401 10,194,846 9,628,205 6,360,926
255,510
466,750
768,600
786,455
255,279
46,100
102,952
127,143
96,195
481,824
821,637
5,077,531
606,984
994,674
1,693,189
5,991,129
$14,517,385 $11,189,520 $11,321,394 $12,352,055
$4,428,797
$3,047,835
$306,631
$269,149
2,183,427
450,310
1,599,255
6,948,019
$6,612,224
$3,498,145
$1,905,886
$7,217,168
Note: GASB 65 was implemented in 2013. Bond issuance costs are now expensed in the year of issuance. Expenses
for years prior to 2013 were not restated.
124
2008
($9,517,053)
(789,044)
(10,306,097)
9,651,758
574,101
108,039
1,150,993
32,195
1,112,623
12,629,709
797,079
22,464
(1,112,623)
(293,080)
$12,336,629
2009
($16,300,557)
(409,980)
(16,710,537)
9,921,598
473,674
27,612
357,953
4,524
774,746
11,560,107
141,070
10,549
(774,746)
(623,127)
$10,936,980
2010
($10,005,325)
(973,696)
(10,979,021)
10,014,684
539,523
45,767
222,719
20,727
(487,911)
10,355,509
114,349
33,644
487,911
635,904
$10,991,413
$3,112,656 ($4,740,450) $350,184
(1,082,124) (1,033,107) (337,792)
$2,030,532 ($5,773,557) $12,392
125
2011
($13,898,911)
(1,529,678)
(15,428,589)
9,849,882
566,045
28,304
505,541
44,000
1,061,763
12,055,535
211,707
6,643
(1,061,763)
(843,413)
$11,212,122
($1,843,376)
(2,373,091)
($4,216,467)
2012
($11,629,054)
(74,263)
(11,703,317)
10,064,176
533,011
20,071
173,523
56,610
1,246,275
(173,420)
11,920,246
92,453
173,420
265,873
$12,186,119
$291,192
191,610
$482,802
Table 2
Page 2 of 2
2013
($9,398,619)
(865,534)
(10,264,153)
10,059,324
545,906
19,941
(14,764)
37,720
307,596
10,955,723
(776)
(307,596)
(308,372)
$10,647,351
$1,557,104
(1,173,906)
$383,198
CITY OF CHANHASSEN, MINNESOTA
FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund:
Reserved
Unreserved:
Designated
Undesignated
Nonspendable
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved:
Designated:
Special revenue funds
Capital project funds
Undesignated:
Special revenue funds
Debt service funds
Capital project funds
Nonspendable
Restricted
Assigned
Unassigned
Total all other governmental funds
2004
2005
2006
2007
$21,003
$20,239
$17,376
$13,210
3,125,910
3,199,800
3,279,050
3,416,950
3,128,630
3,731,023
1,523,844
2,061,126
$6,275,543
$6,951,062
$4,820,270
$5,491,286
$6,942,810
$6,597,316
$5,300,782
$7,335,225
533,276
489,370
431,665
548,438
3,978,818
4,114,820
13,458,697
9,934,936
1,089,942
-
25,020
-
-
3,403,769
148,784
215,298
(893,811)
(738,510)
(214,183)
(239,434)
$11,651,035
$13,866,765
$19,150,765
$17,794,463
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011.
Information for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
126
Table 3
2008
2009
2010
2011
2012
2013
$21,173
$46,750
$55,826
$ -
$ -
$ -
3,586,750
3,690,000
3,754,000
-
-
-
1,273,796
1,137,109
1,459,792
-
-
-
-
-
-
17,280
57,137
16,741
-
-
-
5,278,118
5,434,641
5,274,584
$4,881,719
$4,873,859
$5,269,618
$5,295,398
$5,491,778
$5,291,325
$6,671,271
$2,950,284
$5,642,029
$ -
$ -
$ -
525,692
668,992
2,082,929
-
-
-
18,732,625
11,418,006
7,487,198
-
-
-
237,721
342,877
356,724
-
-
-
(11,584)
(2,001,149)
(786,209)
-
-
-
-
-
-
12,662
1,373,146
1,327,068
-
-
-
10,426,585
6,359,422
9,181,230
-
-
-
6,561,411
6,731,400
6,366,292
-
-
-
(730,120)
(646,856)
(559,515)
$26,155,725
$13,379,010
$14,782,671
$16,270,538
$13,817,112
$16,315,075
127
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
2004
2005
2006
2007
General property taxes
$8,443,464
$9,417,527
$9,140,601
$9,403,109
Tax increment collections
4,917,923
675,798
$315,398
$420,526
Licenses and permits
1,892,579
2,166,022
3,727,297
2,171,558
Intergovernmental
1,013,704
1,244,656
2,171,565
1,148,034
Special assessments
2,262,731
1,113,922
1,922,944
3,922,517
Charges for services
943,744
863,958
899,015
738,669
Fines and forfeits
61,801
104,962
162,946
145,682
Investment income
164,712
387,370
905,930
1,397,746
Contributions and donations
24,749
71,198
43,949
47,428
Refunds and reimbursements
-
-
-
-
Other
290,629
430,171
279,549
404,426
Total revenues
20,016,036
16,475,584
19,569,194
19,799,695
Expenditures:
Current:
General government
2,203,607
2,722,171
2,090,565
2,116,928
Public safety
2,461,410
2,547,676
2,656,923
2,924,751
Public works
1,773,655
2,367,652
4,425,237
3,735,950
Parks and recreation
1,622,199
1,658,200
1,877,109
1,848,880
Community development
326,134
372,938
451,092
841,306
Capital outlay:
General government
-
311,250
98,396
6,734
Public safety
99,872
10,265
38,593
505,215
Public works
1,787,737
2,334,577
6,431,594
6,693,387
Parks and recreation
615,207
462,794
377,367
1,491,848
Debt service:
Principal
7,752,000
2,035,000
1,375,000
1,750,000
Interest and paying agent fees
687,299
691,230
591,614
769,212
Bond issuance costs
29,317
-
36,987
-
Developer assistance
1,660,088
230,353
111,791
206,753
Other
11,046
897,523
300,000
-
Total expenditures
21,029,571
16,641,629
20,862,268
22,890,964
Revenues over (under) expenditures
(1,013,535)
(166,045)
(1,293,074)
(3,091,269)
Other financing sources (uses):
Bonds issued
3,240,000
2,590,000
6,640,000
-
Loans issued
-
105,419
708,003
3,014,744
Bond premium (discount)
(10,387)
-
(44,610)
-
Redemption of refunding bonds
-
(3,560,000)
-
Transfers in
-
338,080
702,889
537,564
Transfers out
(54,242)
-
-
(1,163,065)
Sale of capital assets
963,290
23,795
-
16,740
Special item - sale of old public works building
-
-
-
-
Total other financing sources (uses)
4,138,661
3,057,294
4,446,282
2,405,983
Net change in fund balance
$3,125,126
$2,891,249
$3,153,208
($685,286)
Debt service as a percentage of
noncapital expenditures
50.2%
22.0%
14.8%
18.0%
Debt service as percentage of
total expenditures
40.3%
16.4%
9.6%
11.0%
128
Table 4
2008
2009
2010
2011
2012
2013
$9,582,333
$9,834,389
$10,141,168
$9,760,052
$10,143,011
$10,176,483
$574,101
473,674
539,523
566,045
533,011
545,906
1,810,545
1,085,754
1,331,374
1,381,326
1,595,358
2,113,770
2,147,970
397,438
401,550
1,425,525
2,151,785
7,971,339
623,893
540,151
790,426
1,242,040
1,667,881
3,193,078
841,209
950,760
923,550
795,616
880,920
907,414
124,633
122,496
123,609
126,571
119,997
99,984
1,150,993
357,953
222,719
505,541
173,523
(14,764)
43,410
47,206
58,016
50,685
36,893
33,159
51,247
61,707
132,616
117,441
253,030
235,363
238,030
170,688
213,272
846,523
264,038
259,703
17,188,364
14,042,216
14,877,823
16,817,365
17,819,447
25,521,435
2,102,512
2,070,698
2,525,326
2,162,479
2,326,490
2,274,640
2,885,296
2,979,044
3,077,038
2,896,644
3,013,980
3,179,446
2,786,397
5,710,804
2,739,704
4,779,067
3,726,158
10,628,140
1,933,353
2,487,985
1,901,564
1,906,489
2,154,714
2,002,604
468,819
527,919
698,818
502,916
621,295
522,538
233,600
143,663
473,753
129,535,
75,226
87,707
54,284
55,152
65,667
52,645
39,314
74,144
4,677,179
8,179,324
3,995,444
2,122,641
3,502,371
2,482,728
642,508
235,292
490,737
309,524
1,310,366
627,214
2,689,552
2,553,002
2,370,000
1,025,000
5,100,000
1,590,000
874,848
920,529
888,843
853,152
814,621
599,487
93,811
73,182
46,505
-
-
-
226,055
90,354
176,643
298,216
21,108
-
19,450,042
17,038,308
22,705,643
19,668,214
26,026,948
24,068,648
(2,479,850)
(11,984,732)
(4,572,219)
(220,943)
(4,886,196)
1,452,787
7,550,000
6,020,000
5,200,000
-
-
-
24,839
-
-
-
-
-
-
226,991
35,964
-
-
-
-
(8,387,123)
-
-
-
-
2,646,011
1,324,015
1,105,000
1,734,590
1,203,031
888,711
-
-
-
-
(48,881)
(43,988)
10,695
16,274
30,675
-
-
-
-
-
-
-
1,475,000
-
10,231,545
(799,843)
6,371,639
1,734,590
2,629,150
844,723
$7,751,695
($12,784,575)
$1,799,420
$1,513,647
($2,257,046)
$2,297,510
26.4%
20.5%
23.2%
13.3%
33.3%
10.5%
18.6%
13.6%
17.0%
11.0%
26.0%
9.1%
129
CITY OF CHANHASSEN, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year
Commercial/
Total
Ended
Residential
Industrial
All
Tax
December 31,
Property
Agricultural
Property
Other
Capacity
2004
$19,502,882
$141,939
$5,904,892
$377,531
$25,927,244
2005
22,438,051
178,598
6,054,042
388,885
29,059,576
2006
24,904,864
229,651
6,537,205
408,070
32,079,790
2007
27,853,083
316,461
8,114,703
428,203
36,712,450
2008
29,821,326
208,789
9,135,911
435,603
39,601,629
2009
30,741,292
190,844
9,665,269
471,749
41,069,154
2010
30,301,115
170,857
10,229,329
477,663
41,178,964
2011
28,951,885
131,751
9,778,491
511,185
39,373,312
2012
27,198,238
137,012
9,149,904
520,743
37,005,897
2013
26,970,557
105,160
8,927,095
541,612
36,544,424
Sources: Carver County Taxpayer Services and Hennepin County
130
Captured Tax
Estimated
Tax Capacity
Capacity on
Fiscal
Adjusted
Tax Increment
Disparity
Tax Capacity
District
Contribution
Value
28.11800
($3,958,013)
$17,056
$21,986,287
(619,902)
60,354
28,500,028
(309,211)
(929,994)
30,840,585
(418,018)
(955,204)
35,339,228
(479,494)
(1,498,894)
37,623,241
(473,702)
(1,627,749)
38,967,703
(532,007)
(1,861,362)
38,785,595
(509,863)
(1,998,912)
36,864,537
(469,759)
(2,038,437)
34,497,701
(435,999)
(1,804,630)
34,303,795
Table 5
City
Estimated
Tax Capacity
Direct Tax
Market
as a Percent
Rate
Value
of EMV
32.92200
$2,271,332,100
0.97%
28.11800
2,552,120,200
1.12%
26.63800
2,812,847,100
1.10%
23.78800
3,175,746,500
1.11%
23.71300
3,394,928,100
1.11%
22.99300
3,501,886,800
1.11%
25.18300
3,491,841,800
1.11%
26.60256
3,350,141,800
1.10%
28.53211
3,153,275,000
1.09%
28.42838
3,118,066,700
1.10%
131
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
Table 6
Source: Carver County Taxpayer Services
(I�The City Direct Rate is the Urban based rate, not including Market Value levies.
132
City
Overlapping Rates
Fiscal
Direct
School
Carver
Year
Rate(')
District #112
County
Other
Total
Tax capacity rates (per $100
of adjusted tax
capacity value)
2004
32.92200
37.52400
48.44300
5.84500
124.73400
2005
28.11800
33.29900
44.10700
5.56000
111.08400
2006
26.63800
32.80800
40.83600
5.30500
105.58700
2007
23.78800
35.83100
37.80200
5.13200
102.55300
2008
23.71300
35.97000
37.56300
5.54700
102.79300
2009
22.99300
35.50500
38.03300
5.45800
101.98900
2010
25.18300
35.84000
39.50900
5.63900
106.17100
2011
26.60256
40.23554
41.75163
6.02059
114.61032
2012
28.53211
44.38247
43.56239
6.68081
123.15778
2013
28.42838
45.31946
46.11540
6.60329
126.46653
Source: Carver County Taxpayer Services
(I�The City Direct Rate is the Urban based rate, not including Market Value levies.
132
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2013 2004
Source: Carver County Taxpayer Services
133
FMT17
2
1
3
9
4
5
6
7
8
10
Table 7
Percentage
of Total City
Capacity
1.2%
1.4%
1.0%
0.7%
1.0%
0.9%
0.8%
0.7%
0.7%
0.6%
8.9%
Percentage
Taxable
of Total City
Taxable
Capacity
Capacity
Capacity
Taxpayer
Value
Rank
Value
Value
IRET Properties
$367,250
1
1.1%
$240,254
Istar Minnesota LLC
349,042
2
1.0%
-
Rosemount Inc
309,044
3
0.9%
293,252
Northern States Power Co
267,522
4
0.8%
207,676
LTF Real Estate VRDN I LLC
239,202
5
0.7%
-
LTF Real Estate CBC I (Chan Club) LLC
204,916
6
0.6%
-
Park Avenue Lofts LLC
200,654
7
0.6%
-
DRF Chanhassen Medical Bldg
194,888
8
0.6%
-
PHM/Chanhassen Inc
194,659
9
0.6%
-
Target Corporation T -0862
190,114
10
0.5%
142,992
Beddor Enterprises /E J Carlson
-
-
200,508
McGlynn Bakeries Inc #366
-
-
184,482
Hoyt/DTLK LLC
-
-
158,836
Emplast Inc
-
-
150,334
Beddor Enterprises
-
-
143,026
Bloomberg Companies hie
-
-
127,701
Total
$2,517,291
7.2%
$1,849,061
Total All Property
$34,797,923
$20,789,967
Source: Carver County Taxpayer Services
133
FMT17
2
1
3
9
4
5
6
7
8
10
Table 7
Percentage
of Total City
Capacity
1.2%
1.4%
1.0%
0.7%
1.0%
0.9%
0.8%
0.7%
0.7%
0.6%
8.9%
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134
CITY OF CHANHASSEN, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Table 8
Fiscal
Taxes
Collected Within The
Collections
Year
Levied
Fiscal Year of the Levy
in
Total Collections to Date
Ended
For The
Percentage
Subsequent
Percentage
December 31,
Fiscal Year
Amount
of Levy
Years
Amount
of Levy
2004
$8,639,167
$8,323,053
96.3%
$127,369
$8,450,422
97.8%
2005
9,439,754
9,124,030
96.7%
120,936
9,244,966
97.9%
2006
9,354,890
9,066,591
96.9%
90,332
9,156,923
97.9%
2007
9,575,778
9,447,692
98.7%
114,938
9,562,630
99.9%
2008
9,834,965
9,555,489
97.2%
143,943
9,699,431
98.6%
2009
10,074,565
9,668,713
96.0%
153,379
9,822,092
97.5%
2010
10,213,190
9,918,528
97.1%
(25,730)
9,892,798
96.9%
2011
10,267,390
9,739,125
94.9%
176,446
9,915,571
96.6%
2012
10,153,690
10,005,877
98.5%
41,767
10,047,644
99.0%
2013
10,195,890
10,105,393
99.1%
-
10,105,393
99.1%
Source: City Finance Department
135
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
( "Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
136
Governmental Activities
General
General
Fiscal
Obligation
Revenue
Tax Increment
Improvement
Year
Bonds
Bonds
Bonds
Bonds
2004
$10,710,000
$785,000
$1,170,000
$4,195,000
2005
12,215,000
705,000
1,170,000
3,325,000
2006
8,170,000
620,000
1,120,000
9,210,000
2007
7,315,000
530,000
1,070,000
8,455,000
2008
13,905,000
435,000
1,015,000
7,155,000
2009
13,045,000
335,000
960,000
6,625,000
2010
16,860,000
230,000
900,000
5,805,000
2011
16,195,000
120,000
840,000
5,615,000
2012
11,475,000
-
775,000
5,420,000
2013
10,155,000
-
705,000
5,220,000
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
( "Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
136
137
Table 9
Bonded Debt
Per Total
Carver County
Personal
Income(l)
0.8%
0.9%
0.8%
0.8%
0.8%
0.7%
0.7%
0.8%
0.7%
(a)
Business -Type
Activities
Other
G.O. Revenue
Debt
Debt
Bonds
Total Debt
Per Capita
$ -
$10,600,000
$27,460,000
$1,172
105,419
15,545,000
33,065,419
1,386
813,422
14,820,000
34,753,422
1,455
3,828,166
13,915,000
35,113,166
1,444
3,375,125
12,415,000
38,300,125
1,564
-
11,695,000
32,660,000
1,322
-
10,955,000
34,750,000
1,514
-
20,077,339
42,847,339
1,849
-
20,578,313
38,248,313
1,629
-
16,324,287
32,404,287
1,353
137
Table 9
Bonded Debt
Per Total
Carver County
Personal
Income(l)
0.8%
0.9%
0.8%
0.8%
0.8%
0.7%
0.7%
0.8%
0.7%
(a)
CITY OF CHANHASSEN, MINNESOTA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Table 10
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(I)The Bonded Debt and Bonded Debt Per Capita are Net of Debt Service Fund Balances and represent
debt being repaid soley from property taxes. The "Net Bonded Debt" and "Net Bonded Debt Per Capita"
as defined by the State of Minnesota can be found on Table 12.
138
General
Less:
Percentage
Fiscal
Obligation
Debt Service
of Tax
Bonded Debt
Year
Bonds
Fund Balance
Bonded Debt(l)
Capacity
Per Capita(')
2004
$10,710,000
$1,221,993
$9,488,007
37.62%
$405
2005
12,215,000
4,092,912
8,122,088
29.12%
340
2006
8,170,000
1,156,308
7,013,692
23.02%
294
2007
7,315,000
1,510,778
5,804,222
16.68%
239
2008
13,905,000
1,997,554
11,907,446
31.77%
486
2009
13,045,000
1,891,542
11,153,458
28.59%
452
2010
16,860,000
4,920,004
11,939,996
30.46%
520
2011
16,195,000
5,280,176
10,914,824
29.10%
471
2012
11,475,000
1,368,024
10,106,976
28.76%
430
2013
10,155,000
1,368,024
8,786,976
25.25%
367
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(I)The Bonded Debt and Bonded Debt Per Capita are Net of Debt Service Fund Balances and represent
debt being repaid soley from property taxes. The "Net Bonded Debt" and "Net Bonded Debt Per Capita"
as defined by the State of Minnesota can be found on Table 12.
138
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2013
Table 11
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable* Debt
Direct debt:
City of Chanhassen(') $16,080,000 100.00% $16,080,000
Overlapping debt:
Eastern Carver County School District
230,155,000
40.97%
94,294,504
Eden Prairie Independent School District
62,244,819
0.98%
609,999
Minnetonka Independent School District
98,298,831
0.00%
-
Carver County
24,070,000
33.72%
8,116,404
Hennepin County
723,264,582
0.07%
506,285
Hennepin Suburban Park District
54,166,123
0.09%
48,750
Hennepin Regulatory Railroad Authority
37,350,216
0.09%
33,615
Metropolitan Council
158,664,771
0.03%
47,599
Subtotal - overlapping debt
1,388,214,342
103,657,156
Total direct and overlapping debt
$1,404,294,342
$119,737,156
(')Excludes debt related to the City's business -type activities.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long -term
debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not
imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
139
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2013
Market value
Applicable percentage
Debt limit
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
Legal debt margin
Legal Debt Margin Calculation for Fiscal Years 2004 Through 2013
$3,118,066,700
3%
93,542,001
32,404,287
(5,220,000)
(705,000)
(16,324,287)
(1,449,042)
8,705,958
$84,836,043
Table 12
140
Net Debt
Legal
Amount of Debt
Net Bonded
Fiscal
Debt
Applicable to
Debt
Applicable to
Debt Per
Year
Population
Limit
Limit
Margin
Debt Limit
Capita
2004
23,431
$45,426,642
$9,385,232
$36,041,410
20.66%
401
2005
23,864
51,042,404
8,150,626
42,891,778
15.97%
342
2006
23,889
56,256,942
6,950,304
49,306,638
12.35%
291
2007
24,321
63,514,930
5,844,648
57,670,282
9.20%
240
2008
24,481
101,847,843
11,924,438
89,923,405
11.71%
487
2009
24,699
105,056,604
11,175,086
93,881,518
10.64%
452
2010
22,952
104,755,254
15,831,831
88,923,423
15.11%
690
2011
23,179
100,504,254
14,755,258
85,748,996
14.68%
637
2012
23,484
94,598,250
10,117,347
84,480,903
10.70%
431
2013
23,954
93,542,001
8,705,958
84,836,043
9.31%
363
140
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Table 13
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
IEW
Improvement Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections
Principal Interest
Coverage
2004
$2,262,731
$3,765,000
$110,118
0.584
2005
1,113,922
870,000
139,059
1.104
2006
1,922,944
755,000
103,813
2.239
2007
3,922,517
755,000
360,852
3.515
2008
623,891
1,300,000
287,727
0.393
2009
540,148
1,220,000
142,963
0.396
2010
790,422
1,050,000
230,084
0.617
2011
1,242,038
330,000
185,733
2.408
2012
1,527,253
595,000
178,115
1.975
2013
3,193,076
970,000
164,220
2.815
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
IEW
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Table 14
Sources: (')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.
142
Carver County
Carver County
Chanhassen
Carver County
Personal
Per Capita
Fiscal
Chanhassen
Unemployment
Unemployment
Income
Personal
Year
Population(l)
Rate (2)
Rate (2)
(Thousands)(3)
Income(3)
2004
23,431
3.2%
3.9%
$3,557,756
44,211
2005
23,864
2.6%
3.4%
3,841,268
46,137
2006
23,889
2.7%
3.3%
4,130,449
48,221
2007
24,321
3.1%
4.0%
4,583,177
52,517
2008
24,481
4.0%
5.0%
4,847,174
54,578
2009
24,699
6.0%
7.4%
4,643,449
51,456
2010
22,952
5.2%
6.6%
4,964,078
54,342
2011
23,179
4.3%
5.7%
5,447,800
58,789
2012
23,484
4.7%
5.2%
5,666,282
60,468
2013
23,954
4.4%
4.7%
(a)
(a)
Sources: (')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.
142
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Seven Years Ago(l)
Employer
Employees
Rosemount Inc
1,667
Instant Web Companies
1,043
Lifetime Fitness
899
RR Donnelley
368
Eastern Carver County Schools
350
General Mills
300
Chanhassen Dinner Theatres
252
Minnesota Landscape Arboretum
242
Byerly's
180
Exlar Corporation
180
Super Value Headquarters
Entegris
ABC/Lyman Lumber
Total 5,481
2013
2006
Table 15
4,917
Source: Survey by City Administration and Finance Departments
(1)Principal employer information prior to 2006 is not available
(2)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
143
Percentage
Percentage
of Total City
of Total City
Rank
Employment(2)
Employees
Rank
Employment(2)
1
30.4%
1,200
l
24.4%
2
19.0%
548
4
11.1%
3
16.4%
-
-
-
4
6.7%
324
6
6.6%
5
6.4%
-
-
-
6
5.5%
600
3
12.2%
7
4.6%
300
7
6.1%
8
4.4%
240
9
4.9%
9
3.3%
280
8
5.7%
9
3.3%
-
-
-
-
900
2
18.3%
-
350
5
7.1%
-
175
10
3.6%
4,917
Source: Survey by City Administration and Finance Departments
(1)Principal employer information prior to 2006 is not available
(2)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
143
CITY OF CHANHASSEN, MINNESOTA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Total
Source: City Finance Department
144
68 68 69
Full -Time Equivalent Employees as of December 31,
Function/Program
2004
2005
2006
General government
12
12
12
Public safety
3
3
3
Public works
24
25
26
Parks & recreation
11
11
11
Community development
18
17
17
Total
Source: City Finance Department
144
68 68 69
Table 16
Full -Time Equivalent Employees as of December 31,
2007 2008 2009 2010 2011 2012 2013
13
13
13
13
13
13
13
3
3
3
3
3
3
3
26
26
26
26
26
26
26
11
11
11
11
11
11
11
16
16
16
15
15
14
14
69
69
69
68
68
67
67
145
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Building:
Total permits issued
Total estimated value
Election:
Registered voters
Fire:
Average number of employees
General government:
Area of city - square miles
Average number of permanent full -time
employees (excluding fire department)
Police:
Average number of employees
Number of major crimes
Water:
Number of customers
Daily average consumption - gallons
Plant capacity - gallons
Source: Various City Departments
146
Fiscal Year
2004 2005 2006
2,651
2,884
3,165
$97,333,708
$71,357,132
$106,223,825
15,632
15,632
15,319
43
43
44
23.78
23.78
23.78
68
68
69
11
13
13
1,288
1,068
1,297
6,710
6,872
6,752
2,718,599
2,571,843
3,163,864
8,500,000
8,650,000
8,650,000
Table 17
Fiscal Year
2007
2008
2009
2010
2011
2012
2013
1,202
1,013
702
3,013
2,838
2,608
2,910
3,397
3,285
3,201
$125,865,426
$124,885,965
$67,811,817
$65,046,933
$82,991,029
$83,531,808
$89,370,069
15,319
16,544
16,544
15,326
15,326
16,916
16,916
44
45
45
45
47
48
48
23.78
23.78
23.78
23.78
23.78
23.78
23.78
69
69
69
68
68
67
67
13
14
15
15
15
15
15
1,202
1,013
702
647
757
777
748
6,804
7,039
7,427
7,620
7,655
7,741
7,953
3,031,400
3,200,000
3,642,410
2,698,559
2,257,542
2,570,349
2,876,383
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
147
CITY OF CHANHASSEN, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Function/Program
Fire:
Number of stations
Parks and recreation:
Acres of parks
Acres of open space
Number of shelter buildings
Number of playgrounds
Number of swimming beaches
Number of tennis courts
Number of outdoor pickleball courts
Police:
Number of stations
Public works:
Miles of streets
Miles of sidewalks
Miles of trails
Sewer:
Miles of storm sewers
Miles of sanitary sewers
Number of lift stations
Water:
Miles of watermains
Number of wells
148
Fiscal Year
2004 2005 2006
2 2 2
375
375
375
300
365
365
3
3
3
25
25
25
4
4
4
17
17
17
1
1
1
95.7
102.5
103.8
21.0
24.7
25.5
42.0
42.0
43.0
61.0
62.7
64.2
115.1
115.4
116.9
30
30
31
120.1
120.8
123.4
7
8
10
2007
2
383
434
3
26
6
17
Fiscal Year
2008 2009 2010 2011
2 2 2
383 383 396
434 434 434
3 4 4
26 26 26
6 6 5
17 17 17
2
396
489
4
26
5
17
1
1
1
1
1
106.2
107.0
110.9
111.9
112.0
26.9
28.4
31.1
31.9
31.9
47.2
53.0
53.6
53.6
56.1
66.2
67.1
69.5
71.0
74.5
119.6
120.8
123.0
123.6
123.7
31
31
31
31
31
126.0
129.6
135.1
136.8
137.8
11
12
12
12
12
149
Table 18
2012 2013
2
401
503
4
26
5
15
2
1
112.6
31.9
56.4
75.3
123.9
31
138.0
12
2
401
503
4
27
5
15
3
1
113.5
31.9
58.6
76.5
124.3
31
139.1
12
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150
M OTHER WF®RMATION (UNAUDITED)
151
CITY OF CHANHASSEN, NUNNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2013
General improvement bonds:
G.O. Improvement Bonds, Series 2009A 3.00% 06/03/09 02/01/17
G.O. Street Reconstruction, Series 2010 0.65 % -1.20% 07/22/10 06/15/13
Total general improvement bonds
Enterprise Fund debt:
G.O. Water Revenue Bonds, Series 2004B
4.00 % -4.50%
08/10/04
Final
G.O. Water Revenue Bonds, Series 2005B
Interest
Issue
Maturity
Bonded indebtedness:
Rates
Date
Date
General obligation bonds:
2.00 % -3.00%
10/06/11
02/01/25
G.O. Capital Improvement Plan Bonds, Series 2008A
4.00 % -4.60%
11/18/08
02/01/30
G.O. Library Refunding Bonds, Series 2010A
2.00 % -3.10%
01/27/10
02/01/22
Total general obligation bonds
Tax increment bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C
3.00 % -6.00%
08/10/04
02/01/21
General improvement bonds:
G.O. Improvement Bonds, Series 2009A 3.00% 06/03/09 02/01/17
G.O. Street Reconstruction, Series 2010 0.65 % -1.20% 07/22/10 06/15/13
Total general improvement bonds
Enterprise Fund debt:
G.O. Water Revenue Bonds, Series 2004B
4.00 % -4.50%
08/10/04
02/01/25
G.O. Water Revenue Bonds, Series 2005B
3.75 % -3.90%
11/16/05
02/01/21
G.O. Water Revenue Bonds, Series 2011A
0.30 % -2.15%
10/06/11
02/01/22
G.O. Water Revenue Refunding Bonds, Series 2011B
2.00 % -3.00%
10/06/11
02/01/25
G.O. Water and Sewer Revenue Bonds, Series 2012A
1.00 % -1.55%
11/15/12
02/01/23
Total Enterprise Fund debt
Total City bonded indebtedness
152
Exhibit 1
Prior Years
Payable
2013
Payable
Principal
Original
January 1,
6,020,000
December 31,
Due in
Issue Payments
2013
Issued Payments
2013
2013
$7,550,000 $505,000
$7,045,000
$ - $265,000
$6,780,000
$275,000
3,660,000 -
3,660,000
- 285,000
3,375,000
330,000
11,210,000 505,000
10,705,000
0 550,000
10,155,000
605,000
1,170,000
395,000
775,000
- 70,000
705,000
70,000
6,020,000
600,000
5,420,000
- 200,000
5,220,000
3,515,000
1,540,000
770,000
770,000
- 770,000
-
-
7,560,000
1,370,000
6,190,000
0 970,000
5,220,000
3,515,000
7,930,000
2,085,000
5,845,000
- 340,000
5,505,000
3,930,000
5,465,000
1,785,000
3,680,000
- 3,680,000
-
-
5,920,000
-
5,920,000
- 220,000
5,700,000
645,000
3,720,000
-
3,720,000
- -
3,720,000
-
1,245,000
-
1,245,000
- -
1,245,000
115,000
24,280,000
3,870,000
20,410,000
0 4,240,000
16,170,000
4,690,000
$45,760,000
$6,910,000
$38,850,000
$ - $6,600,000
$32,250,000
$8,880,000
153
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION BONDS - GOVERNMENTAL ACTIVITIES
December 31, 2013
Exhibit 2
154
G.O. Tax
G.O. Capital
G.O. Library
Increment
G.O.
Improvement
Refunding
Refunding
Improvement
Plan Bonds,
Bonds
Bonds,
Bonds,
Series 2008A
Series 2010A
Series 2004C
Series 2009A
Total
Bonds payable
$6,780,000
$3,375,000
$705,000
$5,220,000
$16,080,000
Future interest payable
2,846,421
471,993
175,903
181,800
3,676,117
$9,626,421
$3,846,993
$880,903
$5,401,800
$19,756,117
Payments to maturity:
2014
$559,368
$420,805
$107,775
$3,618,875
$4,706,823
2015
558,168
423,680
109,005
592,900
1,683,753
2016
556,568
420,543
109,895
591,175
1,678,181
2017
559,468
425,830
110,440
598,850
1,694,588
2018
561,768
424,880
110,580
-
1,097,228
2019
558,484
433,480
110,308
-
1,102,272
2020
564,423
431,630
109,600
-
1,105,653
2021
564,468
429,480
113,300
-
1,107,248
2022
563,705
436,665
-
-
1,000,370
2023
567,014
-
-
-
567,014
2024
569,270
-
-
-
569,270
2025
570,454
-
-
-
570,454
2026
570,545
-
-
-
570,545
2027
574,413
-
-
-
574,413
2028
572,035
-
-
-
572,035
2029
578,275
-
-
-
578,275
2030
577,995
-
-
-
577,995
$9,626,421
$3,846,993
$880,903
$5,401,800
$19,756,117
154
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION REVENUE BONDS
December 31, 2013
Exhibit 3
G.O. Water
G.O. Water
G.O. Water
G.O. Water &
$128,715
Revenue
Revenue
Revenue
Sewer Revenue
106,000
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
718,501
2004B
2011A
2011B
2012A
Total
Bonds payable $5,505,000
$5,700,000
$3,720,000
$1,245,000
$16,170,000
Future interest payable 362,094
389,687
921,100
79,443
1,752,324
$5,867,094
$6,089,687
$4,641,100
$1,324,443
$17,922,324
Payments to maturity:
2014
$4,158,854
$715,850
$106,000
$128,715
$5,109,419
2015
426,840
722,923
106,000
132,540
1,388,303
2016
426,740
718,501
135,700
131,340
1,412,281
2017
425,840
722,060
135,100
130,140
1,413,140
2018
428,820
728,813
134,500
133,915
1,426,048
2019
-
733,663
569,500
132,665
1,435,828
2020
-
731,758
567,600
131,321
1,430,679
2021
-
738,163
572,900
134,758
1,445,821
2022
-
277,956
572,675
133,003
983,634
2023
-
-
576,925
136,046
712,971
2024
-
-
580,575
-
580,575
2025
-
-
583,625
-
583,625
$5,867,094
$6,089,687
$4,641,100
$1,324,443
$17,922,324
155
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2013
Exhibit 4
156
G.O.
Library
G.O. Capital
Total
Improvement
G.O. Street
Total
Total
Years of
Bonds
Improvement
General
Refunding
Reconstruction
General
Deferred
Levy/
of 2002A/
Plan Bonds
Bonded
Bonds
Bonds
Improvement
Tax
Collection
2010A
of 2008A
Debt
of 2009A
of 2010
Bonds
Levies
2013/2014
$448,880
$592,100
$1,040,980
$233,800
$444,410
$678,210
$1,719,190
2014/2015
446,098
590,600
1,036,698
232,300
55,000
287,300
1,323,998
2015/2016
452,792
594,000
1,046,792
240,700
-
240,700
1,287,492
2016/2017
451,952
596,700
1,048,652
-
-
1,048,652
2017/2018
461,297
593,600
1,054,897
-
-
1,054,897
2018/2019
459,512
600,300
1,059,812
-
-
1,059,812
2019/2020
457,412
600,800
1,058,212
-
-
-
1,058,212
2020/2021
465,497
600,400
1,065,897
-
-
-
1,065,897
2021/2022
-
604,500
604,500
-
-
-
604,500
2022/2023
-
607,400
607,400
-
-
-
607,400
2023/2024
-
609,200
609,200
-
-
-
609,200
2024/2025
-
609,900
609,900
-
-
-
609,900
2025/2026
-
614,600
614,600
-
-
-
614,600
2026/2027
-
612,700
612,700
-
-
-
612,700
2027/2028
-
620,100
620,100
-
-
-
620,100
2028/2029
-
620,600
620,600
-
-
-
620,600
$3,643,440
$9,667,500
$13,310,940
$706,800
$499,410
$1,206,210
$14,517,150
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