2012 Annual Financial Report(Omprchcn Ivc AMUdI
Fi�aHcial RCP Oft
For the Fiscal Year Ended December 31, 2012
City of Chanhassen, Minnesota
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE CITY OF CHANHASSEN, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2012
Finance Department
Greg Sticha, Finance Director
Member of Government Finance Officers
Association of United States and Canada
- This page intentionally left blank -
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
I. INTRODUCTORY SECTION
Letter of Transmittal 3
Certificate of Achievement 6
Organization 7
Organization Chart 8
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 84
Schedule of Funding Progress - Retiree Health Plan 90
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 94
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds Statement 12 95
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 13
98
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds
Statement 14
99
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 15
102
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Debt Service Funds
Statement 16
103
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 17
106
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Capital Project Funds
Statement 18
109
Special Revenue Funds:
Schedules of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual:
Contribution Fund Statement 19 112
CATV Statement 20 113
Combining Statement of Net Position - Agency Funds Statement 21 116
Combining Statement of Changes in Assets and Liabilities - Agency Funds Statement 22 117
III. STATISTICAL SECTION (UNAUDITED)
Financial Trends:
Net Position by Component Table 1 122
Changes in Net Position Table 2 124
Fund Balances - Governmental Funds Table 3 128
Changes in Fund Balances - Governmental Funds Table 4 130
Revenue Capacity:
Tax Capacity and Estimated Market Value of Taxable Property Table 5 132
Direct and Overlapping Property Tax Capacity Rates Table 6 134
Principal Property Taxpayers Table 7 135
Property Tax Levies and Collections Table 8 137
CITY OF CHANHASSEN, MINNESOTA
TABLE OF CONTENTS
Demographic and Economic:
Demographic and Economic Statistics Table 13 143
Principal Employers Table 14 145
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program
Table 15
Page
Operating Indicators by Function/Program
Reference
No.
Debt Capacity:
Table 17
150
Ratios of Outstanding Debt by Type
Table 9
138
Direct and Overlapping Governmental Activities Debt
Table 10
140
Legal Debt Margin Information
Table 11
141
Pledged Revenue Coverage
Table 12
142
Demographic and Economic:
Demographic and Economic Statistics Table 13 143
Principal Employers Table 14 145
Operating Information:
Full -Time Equivalent City Government Employees by Function/Program
Table 15
146
Operating Indicators by Function/Program
Table 16
148
Capital Asset Statistics by Function/Program
Table 17
150
IV. OTHER INFORMATION (UNAUDITED)
Combined Schedule of Indebtedness
Exhibit 1
154
Debt Service Payments to Maturity:
General Obligation Bonds
Exhibit 2
156
General Obligation Improvement Bonds
Exhibit 3
157
General Obligation Revenue Bonds
Exhibit 4
158
Taxable Valuations, Tax Levies and Tax Rates
Exhibit 5
159
Schedule of Deferred Tax Levies
Exhibit 6
160
- This page intentionally left blank -
�I�kI:is]Bill" to] M61*09Is] z
- This page intentionally left blank -
CITYOF
May 21, 2013
CUMNSFNTo
the Honorable Mayor and City Council
Administration
City of Chanhassen
7700 Market Boulevard
Chanhassen, Minnesota
PO Box 147
schedules and statistical tables rests with the City. We believe the data, as presented, is accurate
Chanhassen, MN 55317
in all material respects; that it is presented in a manner designed to fairly set forth the financial
Engineering
The Comprehensive Annual Financial Report of the City of Chanhassen, Minnesota (the City)
Phone: 952.227.1160
for the fiscal year ended December 31, 2012 is hereby submitted. This report was prepared by
Administration
the Chanhassen Finance Department and responsibility for both the accuracy of the presented
Phone: 952.227.1100
data and the completeness and fairness of the presentation, including all disclosures, supporting
Fax: 952.227.1110
schedules and statistical tables rests with the City. We believe the data, as presented, is accurate
Phone: 952.227.1140
in all material respects; that it is presented in a manner designed to fairly set forth the financial
Building Inspections
position and results of operations of the City as measured by the financial activity of its various
Phone: 952.227.1180
funds; and that all disclosures necessary to enable the reader to gain the maximum understanding
Fax: 952.227.1190
of the City's financial affairs have been included.
Engineering
The organization, form and contents of this report were prepared in accordance with the
Phone: 952.227.1160
standards prescribed by the Governmental Accounting Standards Board, the Government
Fax: 952.227.1170
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.
Finance
Phone: 952.227.1140
This transmittal letter is designed to complement the Management's Discussion and Analysis
Fax: 952.227.1110
(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
and businesses including general government, public safety (police and fire protection), public
2310 Coulter Boulevard
works (engineering, streets, and equipment maintenance), parks and recreational activities,
Phone: 952.20
planning and economic development. In addition to general municipal services, the City
Fax: 952.2277.1404.1404
provides water and sanitary sewer service and oversight (through licensing) of the refuse and
recycling services. In accordance with the reporting entity definition of the Governmental
Planning &
Natural Resources
Accounting Standards Board, the City has included the Chanhassen Economic Development
Authority (EDA) in these financial statements as a blended component unit. The EDA is
Phone: 952.227.1130
governed by five commissioners appointed by the City Council with the City Manager as
Fax: 952.227.1110
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
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, 2012, the
maturities of the investments range from 22 days to 7 years, with an average maturity of 2.04 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, 2012 was 1.13%. 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, 2012 was 23,484. Chanhassen's residential permits were greater in
2012 than 2011. In 2012, there were 172 residential permits as compared to 162 in 2011. The total value of all
building permits and plan checks in 2012 was $83,531,808.
The City has approximately 375 acres of commercial and office industrial land with utilities available. The City
anticipates a two percent growth rate in residential permits and a slightly lower rate for office industrial
development.
In 2012, the City issued $1,245,000 of G.O. Water and Sewer Revenue bonds for its radio replacement project. As
part of that process, the City underwent a financial review by Standard & Poors (the City's bond rating agency).
This review reaffirmed the City's rating of AAA, the highest rating offered by Standard & Poors.
They cited the City's conservative financial management practices and strong financial reserves, along with
management's practice of continuing long term financial planning as reasons for their reaffirmation. There are
approximately fifteen communities in the entire state of Minnesota that have an AAA bond rating.
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, 2011. 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 consecutive years (fiscal years ended 1992 — 2011). 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 HLB
Tautges Redpath, Ltd. for their assistance in preparing this report.
Respectfully submitted,
4
Pr
Greg Sticha, Finance Director
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, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
City of Chanhassen, Minnesota
Organization Chart
Citizens
Environmental Senior
Commission Commission
Planningark & Recreat
Commission Mayor -Council Commission
Economic
Development
Authority
Administration
Law
Enforcement Public Community Parks and
Finance & Fire Works Development Recreation
Administration
CITY OF CHANHASSEN, MINNESOTA
ORGANIZATION
December 31, 2012
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
IMIIki/-1kiIs] �'ix�IMki
- This page intentionally left blank -
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, 2012, and the related notes to
the financial statements, which collectively comprise 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 Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free 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, 2012, and the respective changes in financial position, and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Report on Summarized Comparative Information
We have previously audited the City of Chanhassen, Minnesota's 2011 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 June 15, 2012. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2011 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.
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.
12
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 21,
2013, 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 21, 2013
13
- This page intentionally left blank -
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, 2012. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of
transmittal, which 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
$158,359,572 (net position). Of this amount, $25,175,453 (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 $482,802.
As of the close of the current fiscal year, governmental funds reported combined ending fund
balances of $19,308,890. Of this amount, $6,359,422 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 $5,491,778. Of that
amount, $57,137 was in a nonspendable form and the remaining $5,434,641 was unassigned.
Total debt decreased by $4,599,026 during the current fiscal year, from $42,847,339 to
$38,248,313. The City issued $1,245,000 of G.O. Water and Sewer Revenue bonds in 2012 for
its radio replacement project and made $5,844,026 of principal payments on its existing debt,
including a $4,065,000 payment to extinguish the G.O. Library Bonds of 2002A.
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
• 2002A & 2010A G.O. Library Bonds
• Revolving Assessment Fund
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 fiend financial statement can be found on Statement 9 of this report.
INA
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 financial statements and
schedules can be found on Statement 11 through 22 of this report.
Government -Wide 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 $158,359,572 at the close of the most recent fiscal year.
The largest portion of the City's net position ($124,462,916 or 79%) 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
2012
2011
2012
2011
2012
2011
Assets:
Current and other assets
$27,208,308
$29,101,811
$20,416,343
$19,318,149
$47,624,651
$48,419,960
Capital assets
87,088,564
88,888,165
65,937,352
66,133,292
153,025,916
155,021,457
Total assets
$114,296,872
$117,989,976
$86,353,695
$85,451,441
$200,650,567
$203,441,417
Liabilities:
Long-termliabilities outstanding
$18,515,680
$23,570,963
$20,716,169
$20,201,764
$39,231,849
$43,772,727
Other liabilities
2,528,315
1,457,328
530,831
334,592
3,059,146
1,791,920
Total liabilities
$21,043,995
$25,028,291
$21,247,000
$20,536,356
$42,290,995
$45,564,647
Net position:
Net investment in capital assets
$69,987,563
$70,866,708
$54,475,353
$55,430,138
$124,462,916
$126,296,846
Restricted
8,721,203
13,270,997
-
-
8,721,203
13,270,997
Unrestricted
14,544,111
8,823,980
10,631,342
9,484,947
25,175,453
18,308,927
Total net position
$93,252,877
$92,961,685
$65,106,695
$64,915,085
$158,359,572
$157,876,770
18
Management's Discussion and Analysis
$8,721,203 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 ($25,175,453) 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 $291,192, or 0.3%. The components
of net position increased or decreased as follows:
• Net investment in capital assets decreased $879,145 due to the reduction in depreciable
assets (current year depreciation expense exceeded current year additions).
• Restricted net position decreased $484,794. Amounts restricted for park improvements
decreased $865,909 due to current year expenditures while amounts restricted for debt
service and tax increment purposes each increased by approximately $200,000.
• Unrestricted net position increased $1,655,131 due primarily to the sale of the City's old
public works building, which is indentified as a special item on the Statement of
Activities.
19
Management's Discussion and Analysis
Business -Type Activities
The net position of the City's business -type activities increased by $191,610, or 0.3%. Net
investment in capital assets decreased $954,785 because depreciation expense exceeded capital
asset additions. Unrestricted net position increased $1,146,395, due in large part to increases in
utility operating revenues and connection charges.
City of Chanhassen, Minnesota's Changes in Net Position
Governmental Activities Business -Type Activities
2012 2011 2012 2011
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Taxincrement collections
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Special item- sale ofpublic works building
Gain on sale ofcapital assets
Total revenues
Expenses:
General government
Public safety
Public works
Parks and recreation
Community development
Interest on long-term debt
Water
Sewer
Surface water management
Total expenses
Totals
2012 2011
$3,109,711
$2,555,623
$6,171,579
$5,450,120
$9,281,290
$8,005,743
404,663
692,428
121,925
12,589
526,588
705,017
2,953,496
1,646,573
1,861,689
1,086,655
4,815,185
2,733,228
10,064,176
9,849,882
-
-
10,064,176
9,849,882
533,011
566,045
64,915,085
67,288,176
533,011
566,045
20,071
28,304
-
-
20,071
28,304
173,523
505,541
92,453
211,707
265,976
717,248
1,246,275
-
-
-
1,246,275
-
56,610
44,000
$157,876,770
56,610
44,000
18,561,536
15,888,396
8,247,646
6,761,071
26,809,182
22,649,467
2,690,853
2,565,486
-
-
2,690,853
2,565,486
3,176,441
3,061,122
3,176,441
3,061,122
7,743,147
8,607,534
7,743,147
8,607,534
3,114,340
2,921,593
3,114,340
2,921,593
646,262
799,379
646,262
799,379
725,881
838,421
-
-
725,881
838,421
-
-
3,646,787
3,581,955
3,646,787
3,581,955
-
3,235,324
3,317,329
3,235,324
3,317,329
-
1,347,345
1,173,115
1,347,345
1,173,115
18,096,924
18,793,535
8,229,456
8,072,399
26,326,380
26,865,934
Increase (decrease) in net position before transfers
464,612
(2,905,139)
18,190
(1,311,328)
482,802
(4,216,467)
Transfers
(173,420)
1,061,763
173,420
(1,061,763)
-
Cbange in net position
291,192
(1,843,376)
191,610
(2,373,091)
482,802
(4,216,467)
Net position - beginning, as previously reported
92,961,685
94,180,061
64,915,085
67,288,176
157,876,770
161,468,237
Prior period adjustment
-
625,000
-
-
-
625,000
Net position - beginning, as restated
92,961,685
94,805,061
64,915,085
67,288,176
157,876,770
162,093,237
Netposition- ending
$93,252,877
$92,961,685
$65,106,695
$64,915,085
$158,359,572
$157,876,770
20
Management's Discussion and Analysis
Governmental Activities
Revenues
Revenues for the governmental activities increased by $2,673,140, or 17%. Capital grants and
contributions increased by $1,306,923 from 2011 due to state grant funds being received for the
TH101 — Lyman Blvd to Pioneer Trail project. Also, a $1,246,275 gain was recognized when
the City sold its old public works building.
Expenses
Expenses for the governmental activities decreased by $696,611, or 4%. The decrease is largely
due to fewer public works expenditures in the Revolving Assessment Fund for construction
projects that were not capitalized.
Below are specific graphs which provide comparisons of the governmental activities revenues
and expenses:
Governmental Activities- Revenuesfr�pe"y t' 142
Capital grants andronUibutioru 1 S.9°k�
Operating grantiamdconvibuvomJ
Charges fm —icea 16 9%
21
�Tanincxement caIlectiaru 2.9%
Crzanta andconhibuRori€nat mstncted
�to speciSc pwgamsQ.l".b
rYd bl on sale of capital aasets d.3%
�IImesmcted inc•eatmenteamings 0.9?x
Special item -sale of public racks
building 67%
Management's Discussion and Analysis
Interest on long-term debt 3.9% Governmental Activities -Expenses
Community development 3.6
General government 14.9%
Parks and reereatiou 172% Public safety 17.6%
Public works 42M/
Business -Type Activities
Revenues
Revenues for the business -type activities increased by $1,486,575, or 22%, due primarily to
increases in utility operating revenues and connection charges. The increase was mostly due to
additional water consumption and only slightly due to increased utility usage rates.
Expenses
Expenses for business -type activities increased by $157,057, or 2%. The majority of the increase
was due to an increase in operating expenses of the Surface Water Management Fund.
22
Management's Discussion and Analysis
Below are specific graphs showing the business -type activities revenue and expense
comparisons:
tirIPP311id.di. m -t
—ingst 1%
$uvloess-Tcpv Ara MIi-- R-e
Crpilal grants
andcOnlnbuUOni_':6°
17pcid4ir��dni3
=(zibuki= 1.5%
L.Chazges Cor senices 7x.895
S,_
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 $19,308,890. Approximately 33% of this total amount ($6,359,422) constitutes
fund balance restricted by external constraints established by creditors, grantors, contributors, or
by state statutory provisions. $1,430,283 of fund balance is not in a spendable form, $6,731,400
has been assigned, and $4,787,785 is unassigned.
The General Fund increased by $196,380 in 2012. The increase in fund balance was attributable
to permit revenue in excess of budget
The 2009A G.O. Refunding Bonds debt service fund increased by $612,672 due to developing
properties in the area beginning to pay the deferred assessments. As properties continue to
develop assessment collections will increase to help pay for the infrastructure improvements that
were put in place in 2008.
The 2002A and 2010A G.O. Library Bonds Fund decreased by $3,942,774. The decrease in
fund balance was attributable to the extinguishing of the G.O. Library Bonds of 2002A
($4,065,000).
The Revolving Assessment Fund increased by $2,169,273. The majority of the increase was
from transfers in from the Capital Replacement Fund and the CATV Fund to fund additional
local street improvement projects in years 2013 through 2014.
The nonmajor special revenue funds decreased by $1,684,282 in 2012. This decrease was
primarily due to a transfer of excess franchise fees in the CATV Fund to the City's Revolving
Assessment Fund as noted above.
The nonmajor debt service funds increased by $97,116 in 2012. There were no significant items
that accounted for this increase.
The nonmajor capital project funds increased by $294,569. This increase was from amounts
coming in to capital project funds for the sale of the old public works building and
reimbursements from the state and county for Lyman Blvd improvements. Those funds were
offset by a transfer out of the Capital Replacement Fund to be used for street improvement
projects and a $600,000 expense for a pedestrian underpass and trail out of the Park Acquisition
and Development Fund. The net of these transactions resulted in the increase in fund balance.
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 are Water $5,786,097, Sewer
$4,131,616 and Surface Water Management $713,629. The Water Fund had an increase in net
position in 2012 of $678,899, while the Sewer and Surface Water Management Funds each had a
decrease in net position in 2012 of $268,682 and $218,607, respectively.
Budgetary Highlights
General Fund
There were no budget amendments to the General Fund in 2012.
Budgetary Variances —Revenues
The positive General Fund revenue variance of $405,833 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 $212,086. The majority of the
variance was attributed to under spending of contractual policing services with Carver County
and the elimination of a full time position in the Community Development department.
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, 2012, amounts to $153,025,916 (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)
Beginning
Primary Government Balance Increase
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
Other improvements
Temporary easements
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Other improvements
Temporary easements
Infrastructure
Total accumulated depreciation
Ending
Decrease Balance
$18,986,127
$645,362 $ - $19,631,489
1,676,562
2,214,641 (1,388,264) 2,502,939
550,700
- - 550,700
21,213,389
2,860,003 (1,388,264) 22,685,128
23,437,942
8,202
(613,953)
22,832,191
7,471,164
677,455
(126,151)
8,022,468
5,594,088
228,670
(22,389)
5,800,369
-
12,000
-
12,000
108,733,291
1,523,139
(794,998)
109,461,432
145,236,485
2,449,466
(1,557,491)
146,128,460
5,416,956
558,665
(385,228)
5,590,393
5,101,415
424,399
(82,381)
5,443,433
2,202,111
230,811
(10,149)
2,422,773
-
5,406
-
5,406
64,841,227
3,878,878
(457,086)
68,263,019
77,561,709
5,098,159
(934,844)
81,725,024
Governmental activities capital assets -net $88,888,165 $211,310 ($2,010,911) $87,088,564
26
Management's Discussion and Analysis
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
$ - $ - $1,997,435
2,002,125
2,646,257 (1,664,142) 2,984,240
247,292
186,000 - 433,292
4,246,852
2,832,257 (1,664,142) 5,414,967
12,445,429 - - 12,445,429
2,502,903 130,252 (50,576) 2,582,579
98,499,068 1,799,994 (168,731) 100,130,331
113,447,400 1,930,246 (219,307) 115,158,339
996,327
248,918
- 1,245,245
1,413,993
132,825
- 1,546,818
-
17,412
- 17,412
49,150,640
2,844,570
(168,731) 51,826,479
51,560,960
3,243,725
(168,731) 54,635,954
66,133,292 1,518,778 (1,714,718) 65,937,352
$155,021,457 $1,730,088 ($3,725,629) $153,025,916
Additional information on the City's capital assets can be found in Note 4.
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).
Long-term debt. At the end of the current fiscal year, the City had total bonds payable
outstanding of $38,248,313, a decrease of $4,599,026 from 2011. The City issued $1,245,000 of
G.O. Water and Sewer Revenue bonds in 2012 for its radio replacement project and made
$5,844,026 of principal payments on its existing debt, including a $4,065,000 payment to
extinguish the G.O. Library Bonds of 2002A.
The balance of the bonds payable outstanding is comprised o£ $10,705,000 in general obligation
bonds, $6,190,000 for special assessment debt which is supported in part by special assessments,
$20,410,000 of revenue bonds which financed capital investments for the water, sewer, and
surface water management operations, $775,000 in tax increment bonds and an unamortized
bond premium of $168,313.
27
Management's Discussion and Analysis
Additional long-term debt in the amount of $968,000 for compensated absences was also
outstanding at the end of 2012.
City of Chanhassen, Minnesota's Outstanding Debt
The City's bond rating was 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 $94,598,250. Of the
City's outstanding debt, $9,347,347 is counted within the statutory limitation.
Additional information on the City's long-term debt can be found in Note 5.
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
Governmental Activities
Business -Type Activities
Totals
2012
2011
2012
2011
2012
2011
General obligation bonds
$10,705,000
$15,025,000
$ -
$ -
$10,705,000
$15,025,000
Revenue bonds
-
120,000
20,410,000
19,895,000
20,410,000
20,015,000
Tax increment bonds
775,000
840,000
-
-
775,000
840,000
General improvement bonds
6,190,000
6,785,000
-
-
6,190,000
6,785,000
Bond premium
-
-
168,313
182,339
168,313
182,339
Compensated absences
830,144
789,295
137,856
124,425
968,000
913,720
Total
$18,500,144
$23,559,295
$20,716,169
$20,201,764
$39,216,313
$43,761,059
The City's bond rating was 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 $94,598,250. Of the
City's outstanding debt, $9,347,347 is counted within the statutory limitation.
Additional information on the City's long-term debt can be found in Note 5.
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
- This page intentionally left blank -
30
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2012
With Comparative Totals For December 31, 2011
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
Deferred charges
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
25,460,241
Activities
Activities
2012
2011
$19,746,734
$9,297,623
$29,044,357
$26,030,979
-
7,114,653
7,114,653
11,053,506
-
1,848,326
1,848,326
2,224,185
68,853
43,636
112,489
104,656
714,239
29,202
743,441
299,861
145,956
1,164,293
1,310,249
1,834,962
277,975
-
277,975
353,821
57,600
14,784
72,384
31,901
-
24,006
24,006
25,685
(646,856)
646,856
-
-
1,416,079
-
1,416,079
-
5,427,728
100,225
5,527,953
6,314,396
-
132,739
132,739
146,008
22,685,128
5,414,967
28,100,095
25,460,241
64,403,436
60,522,385
124,925,821
129,561,216
114,296,872
86,353,695
200,650,567
203,441,417
377,583
95,021
472,604
764,626
699,931
53,565
753,496
73,858
127,440
24,144
151,584
116,669
207,671
119,557
327,228
234,878
252,871
238,544
491,415
557,999
862,819
-
862,819
43,890
35,276
5,858
41,134
49,775
794,868
131,998
926,866
863,945
15,536
-
15,536
11,668
1,590,000
4,254,026
5,844,026
5,844,026
16,080,000
16,324,287
32,404,287
37,003,313
21,043,995
21,247,000
42,290,995
45,564,647
69,987,563
54,475,353
124,462,916
126,296,846
5,905,553
-
5,905,553
5,709,727
1,650,118
-
1,650,118
2,516,027
1,022,785
-
1,022,785
812,096
142,747
-
142,747
168,147
14,544,111
10,631,342
25,175,453
22,373,927
$93,252,877
$65,106,695
$158,359,572
$157,876,770
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
Charges For
Functions/Pro rg ams Expenses Services
Primary government:
3,646,787
3,146,886
Governmental activities:
3,235,324
2,434,370
General government
$2,690,853
$553,852
Public safety
3,176,441
1,404,569
Public works
7,743,147
430,486
Parks and recreation
3,114,340
695,740
Community development
646,262
25,064
Interest and fees on long-term debt
725,881
-
Total governmental activities
18,096,924
3,109,711
Business -type activities:
Water
3,646,787
3,146,886
Sewer
3,235,324
2,434,370
Surface water management
1,347,345
590,323
Total business -type activities
8,229,456
6,171,579
Total primary government
$26,326,380
$9,281,290
The accompanying notes are an integral part of these financial statements.
32
Statement 2
The accompanying notes are an integral part of these financial statements.
33
Net (Expense) Revenue and
Program Revenues
Changes in Net Position
Operating Capital
Primary Government
Grants and Grants and
Governmental
Business -Type
Totals
Contributions Contributions
Activities
Activities
2012
2011
$2,960 $ -
($2,134,041)
$ -
($2,134,041)
($2,023,200)
281,228 -
(1,490,644)
-
(1,490,644)
(1,319,271)
100,000 2,953,496
(4,259,165)
-
(4,259,165)
(6,470,286)
20,475 -
(2,398,125)
-
(2,398,125)
(2,460,830)
- -
(621,198)
-
(621,198)
(786,903)
- -
(725,881)
-
(725,881)
(838,421)
404,663 2,953,496
(11,629,054)
0
(11,629,054)
(13,898,911)
2,831 1,068,533
-
571,463
571,463
(177,082)
78,760 427,067
-
(295,127)
(295,127)
(729,210)
40,334 366,089
-
(350,599)
(350,599)
(616,743)
121,925 1,861,689
0
(74,263)
(74,263)
(1,523,035)
$526,588 $4,815,185
(11,629,054)
(74,263)
(11,703,317)
(15,421,946)
General revenues:
General property taxes
10,064,176
-
10,064,176
9,849,882
Tax increment collections
533,011
-
533,011
566,045
Grants and contributions not
restricted to specific programs
20,071
-
20,071
28,304
Unrestricted investment earnings
173,523
92,453
265,976
717,248
Gain on sale of capital assets
56,610
-
56,610
44,000
Special item - sale of public works building
1,246,275
-
1,246,275
-
Transfers
(173,420)
173,420
-
-
Total general revenues, special item
and transfers
11,920,246
265,873
12,186,119
11,205,479
Change in net position
291,192
191,610
482,802
(4,216,467)
Net position - beginning as previously reported
92,961,685
64,915,085
157,876,770
161,468,237
Prior period adjustment
-
-
-
625,000
Net position - beginning as restated
92,961,685
64,915,085
157,876,770
162,093,237
Net position - ending
$93,252,877
$65,106,695
$158,359,572
$157,876,770
The accompanying notes are an integral part of these financial statements.
33
- This page intentionally left blank -
34
CITY OF CHANHASSEN, MINNESOTA
BALANCESHEET
GOVERNMENTAL FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Assets:
Cash and investments
Cash with escrow agent
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Property taxes receivable
Prepaid items
Contract for deed receivable
Special assessments receivable
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Due to other governmental units
Salaries payable
Contracts payable
Interfund loan payable
Deferred revenue
Total liabilities
Fund balances:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balances
357/369
368 2009A 2002A & 601
G.O. 2010A G.O. Revolving
General Refunding Library Assessment Other Govf1
Statement 3
Fund
Bonds
Bonds
Fund
Funds
Totals Governmental Funds
699,931
29,545
125,560 -
- - 1,880
127,440
2012
2011
$5,595,949
$2,118,976
$515,721
$2,980,315
$8,535,773
$19,746,734
$18,391,179
-
-
-
-
-
-
3,829,832
18,315
6,461
1,435
4,483
38,159
68,853
70,153
123,320
-
-
-
590,919
714,239
296,108
16,497
-
-
-
129,459
145,956
707,249
259,003
2,328
2,568
3,035
11,041
277,975
353,821
57,137
-
-
-
463
57,600
29,942
-
-
-
-
1,416,079
1,416,079
-
1,456
2,591,012
-
2,024,614
810,646
5,427,728
6,152,780
$6,071,677
$4,718,777
$519,724
$5,012,447
$11,532,539
$27,855,164
$29,831,064
$125,644 $ - $
- $ - $251,939
$377,583
$715,170
83,895 -
- - 616,036
699,931
29,545
125,560 -
- - 1,880
127,440
98,801
- -
- 206,001 1,670
207,671
228,311
- -
- - 646,856
646,856
729,253
244,800 2,591,012
- 21020,799 1,630,182
6,486,793
6,464,048
579,899 2,591,012
0 2,226,800 3,148,563
8,546,274
8,265,128
57,137 - - - 1,373,146 1,430,283 29,942
- 2,127,765 519,724 - 3,711,933 6,359,422 10,426,585
- - - 2,785,647 3,945,753 6,731,400 6,561,411
5,434,641 - - - (646,856) 4,787,785 4,547,998
5,491,778 2,127,765 519,724 2,785,647 8,383,976 19,308,890 21,565,936
Total liabilities and fund balances $6,071,677 $4,718,777 $519,724 $5,012,447 $11,532,539 $27,855,164 $29,831,064
Fund balance reported above
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.
Other long-term assets are not available to pay for current period expenditures and, therefore, are
deferred in the funds.
Long-term liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds.
Net position of governmental activities
The accompanying notes are an integral part of these financial statements.
35
$19,308,890 $21,565,936
87,088,564 88,888,165
5,623,974 6,420,158
(18,768,551) (23,912,574)
$93,252,877 $92,961,685
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment income
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
General Fund
$7,423,821
1,317,325
285,641
581,285
119,997
29,148
21,685
66,576
176,955
10,022,433
368 2009A G.O.
Refunding Bonds
$335,900
625,288
12,459
973,647
357/369 2002A
& 2010A G.O.
Library Bonds
$351,648
52,137
403,785
1,916,410 - -
2,913,376 - -
2,239,003 - -
1,900,503 - -
424,077 - -
11,145 - -
9,404,514
617,919
(421,539)
(421,539)
195,000
165,975
360,975
612,672
0
4,065,000
281,559
4,346,559
(3,942,774)
0
196,380 612,672 (3,942,774)
Fund balance - January 1 5,295,398 1,515,093
Fund balance - December 31 $5,491,778 $2,127,765
The accompanying notes are an integral part of these financial statements.
36
4,462,498
$519,724
Statement 4
601 Revolving Intra Activity
Assessment Fund Other Govt'l Funds Eliminations Totals Governmental Funds
$437,842
732,931
7,576
1,178,349
$1,593,800
533,011
278,033
1,866,144
309,662
299,635
72,203
15,208
186,454
87,083
5,241,233
410,080 -
- 100,604 -
53,039 1,434,116 -
- 254,211 -
218,326 -
75,226 -
- 39,314 -
2,580,607 910,619 -
- 1,310,366 -
400,000
12,590
3,046,236
(1,867,887)
4,037,160
4,037,160
2,169,273
616,374
$2,785,647
11
2012
$10,143,011
533,011
1,595,358
2,151,785
1,667,881
880,920
119,997
173,523
36,893
253,030
264,038
17,819,447
2,326,490
3,013,980
3,726,158
2,154,714
642,403
75,226
39,314
3,502,371
1,310,366
440,000
-
5,100,000
354,497
-
814,621
5,547,359
0
22,705,643
(306,126)
0
(4,886,196)
110,737
(2,944,866)
1,203,031
(2,572,208)
2,944,866
(48,881)
(2,461,471)
0
1,154,150
1,475,000
-
1,475,000
(1,292,597)
0
(2,257,046)
9,676,573
-
21,565,936
$8,383,976
$0
$19,308,890
The accompanying notes are an integral part of these financial statements.
37
2011
$9,760,052
566,045
1,381,326
1,425,525
1,242,040
795,616
126,571
505,541
50,685
117,441
846,523
16,817,365
2,162,479
2,896,644
4,779,067
1,906,489
801,132
129,535
52,645
2,122,641
309,524
1,025,000
853,152
17,038,308
(220,943)
1,734,590
1,734,590
1,513,647
20,052,289
$21,565,936
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
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
is to increase (decrease) net assets.
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 assets. 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
2012 2011
($2,257,046) $1,513,647
(170,882) (2,679,944)
(1,628,719) (648,094)
(796,184) (1,107,608)
5,100,000 1,025,000
The accompanying notes are an integral part of these financial statements.
38
44,023 53,623
$291,192 ($1,843,376)
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Statement 6
The accompanying notes are an integral part of these financial statements.
39
Surface Water
Water
Sewer
Management
Totals
Assets:
2012
2011
Current assets:
Cash and cash equivalents
$4,904,828
$3,760,165
$632,630
$9,297,623
$7,639,800
Cash with escrow agent
7,114,653
-
-
7,114,653
7,223,674
Restricted cash
1,240,675
607,651
-
1,848,326
2,224,185
Accrued interest receivable
23,743
16,021
3,872
43,636
34,503
Due from other governmental units
13,868
-
15,334
29,202
3,753
Accounts receivable - net
569,759
471,525
123,009
1,164,293
1,127,713
Prepaid items
6,874
4,814
3,096
14,784
1,959
Water meter inventory
24,006
-
-
24,006
25,685
Interfund loan receivable
646,856
-
-
646,856
729,253
Special assessments receivable
19,155
-
-
19,155
31,665
Connection charges receivable
56,239
24,831
-
81,070
129,951
Total current assets
14,620,656
4,885,007
777,941
20,283,604
19,172,141
Noncurrent assets:
Deferred charges
132,739
-
-
132,739
146,008
Capital assets:
Land
1,370,974
145,550
480,911
1,997,435
1,997,435
Easements
237,828
97,732
97,732
433,292
247,292
Buildings and structures
12,445,429
-
-
12,445,429
12,445,429
Machinery and equipment
1,997,701
566,895
17,983
2,582,579
2,502,903
Other improvements
42,952,459
32,479,428
24,698,444
100,130,331
98,499,068
Construction in progress
2,251,891
242,147
490,202
2,984,240
2,002,125
Total capital assets
61,256,282
33,531,752
25,785,272
120,573,306
117,694,252
Less: Allowance for depreciation
(23,516,275)
(19,370,483)
(11,749,196)
(54,635,954)
(51,560,960)
Net capital assets
37,740,007
14,161,269
14,036,076
65,937,352
66,133,292
Total assets
52,493,402
19,046,276
14,814,017
86,353,695
85,451,441
Liabilities:
Current liabilities:
Accounts payable
42,714
23,597
28,710
95,021
49,456
Due to other governmental units
4,421
44,081
5,063
53,565
44,313
Salaries payable
11,607
8,167
4,370
24,144
17,868
Contracts payable
119,557
-
-
119,557
6,567
Accrued interest payable
237,642
902
-
238,544
216,388
Compensated absences payable - due within one year
2,445
2,301
1,112
5,858
6,778
Bonds payable - due within one year
4,254,026
-
-
4,254,026
744,026
Total current liabilities
4,672,412
79,048
39,255
4,790,715
1,085,396
Noncurrent liabilities:
Compensated absences payable -
due in more than one year
55,098
51,843
25,057
131,998
117,647
Bonds payable - due in more than one year
15,701,787
622,500
-
16,324,287
19,333,313
Total noncurrent liabilities
15,756,885
674,343
25,057
16,456,285
19,450,960
Total liabilities
20,429,297
753,391
64,312
21,247,000
20,536,356
Net position:
Net investment in capital assets
26,278,008
14,161,269
14,036,076
54,475,353
55,430,138
Unrestricted
5,786,097
4,131,616
713,629
10,631,342
9,484,947
Total net position
$32,064,105
$18,292,885
$14,749,705
$65,106,695
$64,915,085
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
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 income
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
Water Sewer
Surface
Water
Management
Totals
gni? ?nii
$2,998,495
$2,376,222
$561,851
$5,936,568
$5,270,314
133,363
57,458
21,043
211,864
179,459
3,131,858
2,433,680
582,894
6,148,432
5,449,773
571,062
351,243
234,055
1,156,360
1,133,559
244,301
49,910
32,072
326,283
335,220
-
1,506,629
-
1,506,629
1,519,879
441,767
191,808
290,421
923,996
890,608
269,023
194,992
369
464,384
477,440
1,529,494
923,803
790,428
3,243,725
3,232,214
3,055,647
3,218,385
1,347,345
7,621,377
7,588,920
76,211 (784,705) (764,451) (1,472,945) (2,139,147)
59,129
26,578
6,746
92,453
211,707
2,831
78,760
40,334
121,925
12,589
15,028
690
7,429
23,147
347
(589,952)
(15,751)
-
(605,703)
(463,958)
(1,188)
(1,188)
-
(2,376)
(19,521)
(514,152)
89,089
54,509
(370,554)
(258,836)
(437,941) (695,616) (709,942) (1,843,499) (2,397,983)
48,480
152
249
48,881
-
(510,685)
(296,273)
(396,073)
(1,203,031)
(1,734,590)
576,048
355,014
606,165
1,537,227
697,851
15,355
6,042
-
21,397
48,114
987,642
361,999
280,994
1,630,635
1,013,517
1,116,840
426,934
491,335
2,035,109
24,892
678,899
(268,682)
(218,607)
191,610
(2,373,091)
31,385,206
18,561,567
14,968,312
64,915,085
67,288,176
Net position - December 31 $32,064,105 $18,292,885 $14,749,705 $65,106,695 $64,915,085
Capital Transfers -
Contributions Net
Amounts reported above $3,189,259 ($1,154,150)
Amounts reported for business -type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (1,327,570) 1,327,570
Amounts reported on the statement of activities
The accompanying notes are an integral part of these financial statements.
40
$1,861,689 $173,420
CITY OF CHANHASSEN, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers
Payment to employees
Miscellaneous revenue
Net cash flows provided by operating activities
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 income
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:
Statement 8
(379,808) (296,121) (395,824) (1,071,753) (1,734,590)
(1,438,839)
(28,223)
Surface Water
(1,469,229)
(700,676)
Water
Sewer
Management
Totals
1,078,537
16,177
17,730
2012
2011
$3,089,420
$2,434,664
$562,319
$6,086,403
$5,314,657
(943,721)
(1,864,402)
(300,213)
(3,108,336)
(3,212,922)
(563,519)
(345,154)
(227,980)
(1,136,653)
(1,127,427)
17,859
79,450
47,763
145,072
12,936
1,600,039
304,558
81,889
1,986,486
987,244
221,870
264,621
937,116
48,480
152
249
48,881
-
(510,685)
(296,273)
(396,073)
(1,203,031)
(1,734,590)
82,397
-
-
82,397
-
(379,808) (296,121) (395,824) (1,071,753) (1,734,590)
(1,438,839)
(28,223)
(2,167)
(1,469,229)
(700,676)
1,021,768
376,754
280,994
1,679,516
1,078,537
16,177
17,730
-
33,907
66,101
622,500
622,500
-
1,245,000
9,822,339
(660,000)
(70,000)
-
(730,000)
(700,000)
(568,099)
(16,205)
-
(584,304)
(579,293)
(1,006,493)
902,556
278,827
174,890
8,987,008
50,883
26,123
6,314
83,320
221,870
264,621
937,116
(28,794)
1,172,943
8,461,532
12,995,535
3,430,700
661,424
17,087,659
8,626,127
$13,260,156
$4,367,816
$632,630
$18,260,602
$17,087,659
$76,211 ($784,705) ($764,451) ($1,472,945) ($2,139,147)
17,859 79,450 47,763 145,072 12,936
- 69,285 - 69,285 -
1,529,494 923,803 790,428 3,243,725 3,232,214
Decrease (increase) in receivables
(42,438)
984
(20,575)
(62,029)
(135,116)
Decrease in prepaid items
(5,624)
(4,163)
(3,038)
(12,825)
11,592
Decrease (increase) in inventory
1,679
-
-
1,679
1,541
Increase (decrease) in payables
22,858
19,904
31,762
74,524
3,224
Total adjustments
1,523,828
1,089,263
846,340
3,459,431
3,126,391
Net cash provided by operating activities
$1,600,039
$304,558
$81,889
$1,986,486
$987,244
Noncash investing, capital and financing activities:
Capital assets in the amount of $576,048 and $489,836 were contributed to the Water Fund in 2012 and 2011, respectively.
Capital assets in the amount of $355,014 and $82,700 were contributed to the Sewer Fund in 2012 and 2011, respectively.
Capital assets in the amount of $606,165 and $123,609 were contributed to the Surface Water Fund in 2012 and 2011, 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, 2012
With Comparative Totals For December 31, 2011
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Statement 9
Agency Funds
2012 2011
$1,093,722 $895,645
$1,093,722 $895,645
The accompanying notes are an integral part of these financial statements.
42
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012
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, 2012
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.
2002A & 2010A G. 0. Library Bond Fund (357/369) accounts for the accumulation of resources
for payment of the general obligation bonds issued to finance construction of the library. Sources
from the 2010A Refunding Bonds were used to retire the 2002A Bonds during 2012.
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.
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, 2012
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.
When both restricted and unrestricted resources are available for an allowable use, it is the City's
policy to use restricted resources first, then unrestricted resources as they are needed.
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 2012. 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, 2012
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 2012, the CATV Special Revenue Fund had expenditures of $195,884, which exceeded
budgeted expenditures of $102,900 by $92,984. The Contribution Special Revenue Fund had
expenditures of $30,830, which exceeded budgeted expenditures of $18,700 by $12,130.
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. RESTRICTED CASH
Certain funds of the City are classified as restricted cash on the statement of net position because the
restriction is either imposed by law through constitutional provisions or enabling legislation or
imposed externally by creditors, grantors, contributors, or laws or regulations of other governments.
Therefore, their use is limited by applicable laws and regulations. At December 31, 2012, $1,848,326
of restricted cash is held, $633,024 in the Water Fund to be used for construction of an elevated
storage tank and $607,651 in each the Water Fund and the Sewer Fund to be used for the radio
replacement project.
H. RECEIVABLES
Property taxes and special assessment receivables have been reported net of estimated uncollectible
accounts (See Note 1 I and J). 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.
47
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
I. 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 revenue
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.
J. 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
48
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
GOVERNMENT -WIDE FINANCIAL STATEMENTS
The City recognizes special assessment revenue in the period that the assessment roll was adopted by
the City Council. Uncollectible special assessments are not material and have not been reported.
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 revenues.
K. 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.
L. 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.
M. 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, 2012
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, 2012, 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
N. 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.
O. LONG-TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business -type activities, or proprietary fund type statement of net position.
Bond premiums and discounts, as well as issuance costs, if material, are amortized over the life of the
related debt.
50
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
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.
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.
51
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2011, from which the summarized
information was derived.
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 ($18,768,551) difference are as follows:
Bonds payable ($17,670,000)
Accrued interest payable (252,871)
Compensated absences (830,144)
Other post employment benefit payable (15,536)
Net adjustment to decrease fund balances - total governmental
funds to arrive at net position - governmental activities ($18,768,551)
52
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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
netposition 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 ($170,882)
difference are as follows:
Capital outlay/construction $4,927,277
Depreciation expense (5,098,159)
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities ($170,882)
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 ($1,628,719) difference are as follows:
Donation 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
Transfer of capital assets to Enterprise Funds
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
Net adjustment to decrease net changes in fund
balances - total governmental funds to arrive at
changes in net position of governmental activities
53
$235,388
(1,327,570)
(536,537)
($1,628,719)
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 ($796,184) difference are as follows:
General property taxes deferred revenue:
At December 31, 2011 ($272,940)
At December 31, 2012 194,105
Special assessments deferred revenue:
At December 31, 2011 (6,147,218)
At December 31, 2012 5,423,913
Other 2012 revenue has been deferred because it was not
collected within 60 days from year-end.
At December 31, 2011 -
At December 31, 2012 5,956
Net adjustment to decrease net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities ($796,184)
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 $5,100,000 difference are
as follows:
Debt issued:
Bonds issued
Principal repayments:
General obligation debt
General obligation improvement bonds
General obligation tax increment bonds
Public project revenue bonds
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities
54
4,320,000
595,000
65,000
120,000
$5,100,000
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 $44,023 difference are as follows:
Compensated absences ($40,849)
Other post employment benefits (3,868)
Accrued interest 88,740
Net adjustment to increase net changes in fund balances - total
governmental funds to arrive at changes in net position of
governmental activities $44,023
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, 2012, the bank balance of the City's deposits was covered
by federal depository insurance or covered by collateral pledged and held in the City's name.
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
661.7
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Investors Service, Inc. or Standard & Poor's Corporation; and
f) Time deposits that are fully insured by any federal agency.
At December 31, 2012, the carrying amount of the City's deposits with financial institutions was
$8,874,282.
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.
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.
56
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
As of December 31, 2012, the City had the following investments and maturities:
Investment Maturities (in Years)
Fair
Less
Investment Type
Rating
Value
Than 1
1-5
6-10
4M Fund
NR
$8,626
$8,626
$ -
$ -
Money Market Mutual Funds
NR
6,001,873
6,001,873
-
-
Brokered Certificates of Deposit
NR
4,988,487
2,986,946
2,001,541
-
Municipal Bonds
(1)
11,589,177
561,644
10,810,882
216,651
Federal Home Loan Bank Notes
Aaa
2,573,121
2,044,886
528,235
-
Federal National Mortgage Assn. Notes
NR
3,041,365
-
2,535,858
505,507
Federal Home Loan Mortgage Corp. Notes
NR
1,253,492
-
-
1,253,492
City of Chanhassen G.O. Bonds
AAA
770,000
770,000
Total
$30,226,141
$12,373,975
$15,876,516
$1,975,650
(1) $3,114,458 are rated Aaa, $1,320,542 are rated Aal,
Total investments
$30,226,141
$3,226,223 are rated Aa2, $3,423,879 are rated Aa3 and $504,075
Deposits
8,874,282
are rated Al.
Petty cash
635
NR - Not Rated
Total cash and investments
$39,101,058
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) $29,044,357
Fiduciary (Statement 9) 1,093,722
Cash with escrow agent (Statement 1) 7,114,653
Restricted cash 1,848,326
Total
C. INVESTMENT RISKS
$39,101,058
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
$1,500,000 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.
61VA
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 I I8A.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 2a7 -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%
Federal National Mortgage Association notes 10%
58
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2012 are as
follows:
CONTRACT FOR DEED RECEIVABLE
During 2012, the City sold its old public works building for $1,475,000. The transaction meets the definition
of a special item and has been reported as such in the financial statements.
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,
2013
2014
2015
2016
2017
Principal
$43,396
45,616
39,492
29,373
1,258,202
Total $1,416,079
59
Contract
Interfund
Delinquent
Special
for Deed
Loan
Property
Assessments
Receivable
Receivable
Taxes
Receivable
Total
Major Funds:
General
$ -
$ -
$55,701
$444
$56,145
2009A G.O. Refunding
-
-
-
2,485,603
2,485,603
Revolving Assessment Fund
-
-
-
1,701,474
1,701,474
Water
-
-
-
52,120
52,120
Sewer
-
-
-
14,678
14,678
Nonmajor Funds
1,372,683
559,515
-
712,999
2,645,197
$1,372,683
$559,515
$55,701
$4,967,318
$6,955,217
CONTRACT FOR DEED RECEIVABLE
During 2012, the City sold its old public works building for $1,475,000. The transaction meets the definition
of a special item and has been reported as such in the financial statements.
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,
2013
2014
2015
2016
2017
Principal
$43,396
45,616
39,492
29,373
1,258,202
Total $1,416,079
59
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received, but not yet earned. At the end of the current fiscal year,
the various components of deferred revenue and unearned revenue reported in the governmental funds were as
follows:
60
Major Funds
2009A
G.O.
Revolving
General
Refunding
Assessment
Nonmajor
Fund
Bonds
Fund
Funds
Total
Unavailable:
Delinquent property taxes receivable
$194,105
$ -
$ -
$ -
$194,105
Special assessments not yet due
1,456
2,591,012
2,020,799
810,646
5,423,913
Other
5,956
-
-
5,956
Total unavailable revenue
201,517
2,591,012
2,020,799
810,646
5,623,974
Unearned:
Antenna rental fees received but not yet earned
34,084
-
-
-
34,084
Donations/rentals received but not yet earned
9,199
-
-
9,199
Grants and state aid
-
819,536
819,536
Total unearned revenue
43,283
0
0
819,536
862,819
Total deferred unavailable/unearned revenue
for governmental funds
$244,800
$2,591,012
$2,020,799
$1,630,182
$6,486,793
60
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 4 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012 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
Other improvements
Temporary easements
Infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and structures
Machinery and equipment
Other improvements
Temporary easements
Infrastructure
Total accumulated depreciation
Beginning
558,665
(385,228)
Ending
Balance
Increase
Decrease
Balance
2,202,111
230,811
$18,986,127
$645,362
$ -
$19,631,489
1,676,562
2,214,641
(1,388,264)
2,502,939
550,700
-
-
550,700
21,213,389
2,860,003
(1,388,264)
22,685,128
23,437,942
8,202
(613,953)
22,832,191
7,471,164
677,455
(126,151)
8,022,468
5,594,088
228,670
(22,389)
5,800,369
-
12,000
-
12,000
108,733,291 1,523,139 (794,998) 109,461,432
145,236,485 2,449,466 (1,557,491) 146,128,460
5,416,956
558,665
(385,228)
5,590,393
5,101,415
424,399
(82,381)
5,443,433
2,202,111
230,811
(10,149)
2,422,773
-
5,406
-
5,406
64,841,227
3,878,878
(457,086)
68,263,019
77,561,709
5,098,159
(934,844)
81,725,024
Governmental activities capital assets - net $88,888,165 $211,310 ($2,010,911) $87,088,564
61
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 $ - $ - $1,997,435
2,002,125 2,646,257 (1,664,142) 2,984,240
247,292 186,000 - 433,292
4,246,852 2,832,257 (1,664,142) 5,414,967
12,445,429 - - 12,445,429
2,502,903 130,252 (50,576) 2,582,579
98,499,068 1,799,994 (168,731) 100,130,331
113,447,400 1,930,246 (219,307) 115,158,339
996,327
248,918
- 1,245,245
1,413,993
132,825
- 1,546,818
-
17,412
- 17,412
49,150,640
2,844,570
(168,731) 51,826,479
51,560,960
3,243,725
(168,731) 54,635,954
66,133,292 1,518,778 (1,714,718) 65,937,352
$155,021,457 $1,730,088 ($3,725,629) $153,025,916
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
62
$341,623
157,074
3,651,678
947,784
$5,098,159
$1,529,494
923,803
790,428
$3,243,725
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 5 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, 2012, the governmental activities long-term debt of the City consisted of the following:
Final Authorized
Issue Maturity Interest And Outstanding
Date Date Rate Issued 12/31/12
General Long -Tenn Debt:
General Obligation Bonds:
G.O. Capital Improvement Plan Bonds, Series 2008A 11/18/08 2/01/30 4.00% - 4.60% $7,550,000 $7,045,000
G.O. Library Refunding Bonds, 2010A 1/27/10 2/01/22 2.00% - 3.10% 3,660,000 3,660,000
Total general obligation bonds 11,210,000 10,705,000
Tax Increment Bonds:
G.O. Tax Increment Refunding Bonds, Series 2004C
General Improvement Bonds:
G.O. Improvement Refunding Bonds, Series 2009A
G.O. Street Reconstruction Bonds, Series 2010
Total improvement bonds
Compensated absences payable
8/10/04 2/01/21 3.00%-6.00% 1,170,000 775,000
6/03/09 2/01/17 3% 6,020,000 5,420,000
7/22/10 6/15/13 .65%-1.2% 1,540,000 770,000
7,560,000 6,190,000
N/A 830,144
Total City indebtedness - governmental activities $19,940,000 $17,670,000
63
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
BUSINESS -TYPE ACTIVITIES
$970,000
$164,220
$70,000
$41,345
$550,000
As of December 31, 2012, the business -type activities long-term debt of the
City consisted of the following:
3,515,000
103,875
Final
37,775
Authorized
375,173
2015
Issue
Maturity
Interest
And
Outstanding
356,848
Date
Date
Rate
Issued
12/31/12
G.O. Revenue Bonds:
337,111
2017
590,000
8,850
85,000
Water Revenue Bonds, Series 2004B
8/10/2004
2/1/2025
4.00% - 4.50%
$7,930,000
$5,845,000
Water Revenue Bonds, Series 2005B
11/16/2005
2/1/2021
3.75% - 3.90%
5,465,000
3,680,000
Water Revenue Bonds, Series 2011A
10/6/2011
2/1/2022
0.30% - 2.15%
5,920,000
5,920,000
Water Revenue Refunding Bonds, Series 2011B
10/6/2011
2/1/2025
2.00% - 3.00%
3,720,000
3,720,000
Water and Sewer Revenue Bonds, Series 2012A
11/15/2012
2/1/2023
1.00% -1.55%
1,245,000
1,245,000
Bond premium
2022
-
-
182,339
168,313
Total G.O. revenue bonds
185,370
2023
-
24,462,339
20,578,313
Compensated absences payable N/A 137,856
Total City indebtedness - business -type activities $24,462,339 $20,716,169
GOVERNMENTAL ACTIVITIES
Annual debt service requirements to maturity for the governmental activities long-term debt are as follows:
G.O. Improvement Bonds
Year Ending Governmental Activities
December 31, Principal Interest
G.O. Tax Increment Bonds
Governmental Activities
Principal Interest Principal Interest
All Other G.O. Bonds
Governmental Activities
2013
$970,000
$164,220
$70,000
$41,345
$550,000
$392,123
2014
3,515,000
103,875
70,000
37,775
605,000
375,173
2015
550,000
42,900
75,000
34,005
625,000
356,848
2016
565,000
26,175
80,000
29,895
640,000
337,111
2017
590,000
8,850
85,000
25,440
670,000
315,298
2018
-
-
90,000
20,580
695,000
291,648
2019
-
-
95,000
15,308
725,000
266,964
2020
-
-
100,000
9,600
755,000
241,053
2021
-
-
110,000
3,300
780,000
213,948
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
$6,190,000
$346,020
$775,000
$217,248
$10,705,000
$3,710,537
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
64
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
The revenue and street reconstruction bonds issued were sold by the City's Economic Development Authority
(EDA) to fund the construction of a municipal facility and street reconstruction costs. The City makes lease
payments to the EDA to fund debt service on these issues. The EDA is a blended component unit of the City
and the bond is reported in the governmental activities column on the Statement of Net Position.
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. The
balance payable at December 31, 2012 is $6,190,000.
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
2013
$4,240,000
$501,296
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
1,25 5,000
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
$20,410,000
$2,253,620
It is not practicable to determine the specific year for payment of long-term accrued compensated absences.
65
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
CHANGE IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31, 2012 was as follows:
Governmental activities:
Bonds payable:
General obligation
G.O. improvement bonds
G.O. tax increment bonds
Public project revenue 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
Ending
Due Within
Balance
Additions
Deletions
Balance
One Year
$15,025,000
$ -
($4,320,000)
$10,705,000
$550,000
6,785,000
-
(595,000)
6,190,000
970,000
840,000
-
(65,000)
775,000
70,000
120,000
-
(120,000)
-
-
22,770,000
-
(5,100,000)
17,670,000
1,590,000
789,295
534,779
(493,930)
830,144
35,276
$23,559,295
$534,779
($5,593,930)
$18,500,144
$1,625,276
$19,895,000
$1,245,000
($730,000)
$20,410,000
$4,240,000
182,339
-
(14,026)
168,313
14,026
124,425
104,627
(91,196)
137,856
5,858
$20,201,764 $1,349,627 ($835,222) $20,716,169 $4,259,884
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, 2012 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, 2012 totaled $18,490.
General Obligation Water Revenue Bonds are serviced by the Sewer and Water Enterprise Funds and are
carried as debt of that fund. 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 2011A Bonds
On October 6, 2011, the City issued $5,920,000 in General Obligation Bonds, Series 2011A with an average
interest rate of 1.48%. $3,430,000 of the proceeds will be used to advance refund $3,330,000 of outstanding
2005B Series Bonds with an average interest rate of 3.82%. The net proceeds were used to purchase U.S.
government securities in the amount of $3,379,956. 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 and called
principal on the refunded bonds on February 1, 2013.
66
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
The City advance refunded the 2005B General Obligation Water Revenue Bonds to reduce its total debt service
payments during the years 2012 through 2021 by $264,221 and to obtain an economic gain (difference between
the present value of the debt service payments on the old and new debt) of $245,005.
The City is responsible for the debt service of the refunded bonds through the crossover date (February 1,
2013) and the debt service of the refunding bonds after the crossover date. The debt service of the refunding
bonds before the crossover date is payable from the escrow account. Assets held with the escrow agent total
$3,348,939 at December 31, 2012.
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 2011A bonds are crossover refunding bonds whereby the City and the escrow
agent are responsible for debt service payments as follows:
Year Ending
December 31,
Refunded Refunding
Bonds Total Bonds Total
Debt Service Commitment
Escrow
Account City
2013
$3,749,910 $41,898
$3,350,949 $440,859
2014
- 446,088
- 446,088
2015
- 454,240
- 454,240
2016
- 451,439
- 451,439
2017
- 452,365
- 452,365
2018
- 457,153
- 457,153
2019
- 460,730
- 460,730
2020
- 458,205
- 458,205
2021
- 464,600
- 464,600
Total
$3,749,910 $3,686,718
$3,350,949 $4,085,679
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
an economic gain (difference between the present value of the debt service payments on the old and new debt)
of $223,262.
67
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 $3,765,714 at
December 31, 2012.
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:
68
Debt Service Commitment
Year Ending
Refunded
Refunding
Escrow
December 31,
Bonds Total
Bonds Total
Account
City
2013
$582,754
$106,000
$106,000
$582,754
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
$6,449,848
$4,747,100
$3,787,000
$7,409,948
68
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Note 6 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, 2012.
Future scheduled tax levies for all bonds outstanding at December 31, 2012 totaled $16,236,340.
69
Revenue Pledged
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
Pledge
and Interest
Paid
Received
2008A CIP bonds
Public Works Facility construction
Property taxes
100%
n/a
2009-2029
$10,186,589
$561,017
$593.,800
2010A Library Refunding bonds
Library construction
Property taxes
1001)
o
2012-2021
$4,228,948
$99,805
$351,648
- refunded the 2002A Library bonds
2004C TIF Refunding bonds
Downtown Redevelopment Project
Tax increment
10011,
n, v
2004-2021
$992,248
$110,270
$110,270
2009A Improvement Refunding bonds
Infrastructure improvements
Special assessments
6811'.
n. a
2009-2017
$5,761,400
$360,975
$961,188
- refunded the 2005A & 2006A bonds
Property taxes
32%
2010 Street Reconstruction bonds
Street reconstruction
Property taxes
100%
nia
2010-2013
$774,620
$412,590
$412,590
2011A Water Revenue bonds
Water infrastructure improvements
Water usage charges
100%
1 9".
2012-2021
$6,382,157
$59,656
$3,131,858
- refunded the 2005B bonds
201113 Water Revenue bonds
Water infrastructure improvements
Water usage charges
100%
2.8%
2012-2024
$4,747,100
$86,861
$3,131,858
- refunded the 2005B bonds
2012A Water & Sewer Revenue
Purchase of meter reading equipment
Water and sewer
100"%
0.0%
2013-2022
$1,334,605
$ -
$5,565,538
Bonds
usage charges
Note 6 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, 2012.
Future scheduled tax levies for all bonds outstanding at December 31, 2012 totaled $16,236,340.
69
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 7 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 internet at
www.nmpera.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 2012. PEPFF members were required to contribute 9.6% of their annual covered
salary in 2012. The City was required to contribute the following percentages of annual covered
payroll in 2012: 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, 2012, 2011 and 2010 were $318,411, $318,398 and $314,239,
respectively. The City's contributions to the Public Employees Police and Fire Fund for the years
ending December 31, 2012, 2011 and 2010 were $18,444, $18,058 and $18,168, respectively. The
City's contributions were equal to the contractually required contributions for each year as set by state
statute.
FTI
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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
71
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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 $110,721 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 $161,202
Contributions made:
City 50,481
State aid 110,721
Actuarial valuation date 12/31/12
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
Three -Year Trend Information
72
Annual
Percentage Net
Year
Pension
of APC Pension
Ending
Cost (APC)
Contributed Obligation
12/31/2010
$198,506
100% $ -
12/31/2011
161,302
100% -
12/31/2012
161,202
100% -
72
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
REQUIRED SUPPLEMENTARY INFORMATION
*2012 information was not available.
The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are
no covered payroll amounts or percentage calculations).
Note 8 OTHER POST -EMPLOYMENT BENEFITS
In 2008, the City prospectively implemented the requirement of a new accounting pronouncement, GASB
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than
Pensions.
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 7, 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.
73
Assets in
Excess of/
Pension
Actuarial
Actuarial
Actuarial
(Unfunded)
Benefit
Valuation
Value of
Accrued
Accrued
Funded
Per Year
Date
Assets
Liability
Liability
Ratio
of Service
12/31/2010
$2,500,135
$3,054,811
($554,676)
81.8%
$5,050
12/31/2011
2,194,668
2,825,000
(630,332)
77.7%
5,050
12/31/2012
*2012 information was not available.
The Association is comprised of volunteers; therefore, there are no payroll expenditures (i.e., there are
no covered payroll amounts or percentage calculations).
Note 8 OTHER POST -EMPLOYMENT BENEFITS
In 2008, the City prospectively implemented the requirement of a new accounting pronouncement, GASB
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than
Pensions.
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 7, 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.
73
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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.
74
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012, was calculated as follows:
Annual required contribution (ARC) $9,383
Interest on net OPEB obligation 233
Adjustment to ARC (516)
Annual OPEB cost 9,100
Contributions made during the year (5,232)
Increase (decrease) in net OPEB obligation 3,868
Net OPEB obligation - beginning of year 11,668
Net OPEB obligation - end of year $15,536
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:
W
Percentage of
Fiscal Year
Annual OPEB
Employer
Annual OPEB Cost
Net OPEB
Ended
Cost
Contributions
Contributed
Obligation
December 31, 2010
$5,720
$3,060
53.5%
$9,592
December 31, 2011
9,208
4,748
51.6%
11,668
December 31, 2012
9,100
5,232
57.5%
15,536
W
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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:
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, 2012 was
25 years.
76
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
Note 9 INTERFUND LOAN RECEIVABLE/PAYABLE AND TRANSFERS
Amounts reported as interfund receivable/payable at December 31, 2012 are as follows:
Fund
Transit Station Assessment Fund
Water Fund
Total
Receivable
646,856
Payable
$646,856
$646,856 $646,856
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 $82,397 of repayments in 2012 and $87,341 is expected to be repaid in 2013.
Interfund transfers:
General Fund
Revolving Assessment Fund
Nonmajor government funds
Water Fund
Sewer Fund
Surface Water Management Fund
Total
Transfers Transfers
In Out
$ -
$421,539
4,037,160
-
110,737
2,572,208
48,480
510,685
152
296,273
249
396,073
$4,196,778 $4,196,778
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 2012
transfers are considered routine and consistent with previous practices.
Note 10 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.
V&A
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
As of December 31, 2012, the outstanding conduit debt is as follows:
Bonds
Project Name Issued
Chapel Hill Academy, Series 2005A 12/05
St. Hubert Catholic Community, Series 2007 10/07
Note 11 DEFICIT FUND BALANCES
Original 12/31/12
Principal Principal
$1,337,700 $764,370
5,942,140 4,014,579
The City has a deficit fund balance of $646,856 in the Transit Station Assessment Capital Project Fund at
December 31, 2012. The deficit will be eliminated through special assessment collections.
Note 12 COMMITMENTS AND CONTINGENCIES
A. RISK MANAGEMENT
Maturity
Date
2019
2027
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 (MPGA) and other responsible parties to
address the contamination issues on the site. At this time, there is not an estimated dollar amount of the
cost to remediate the site nor has a claim been asserted against WAFTA or the City.
78
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012.
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.
The City has issued several 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 (Gateway Place) — 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, 2012 the
principal amount outstanding on the note was $245,555.
Taxable Tax Increment Revenue Note, Series 2003A (Presbyterian Homes) — issued in 2003 in the
principal sum of $1,060,000 with an interest rate of 0% per annum. Semi-annual principal payments
shall be paid commencing August 1, 2006 and continuing through February 1, 2014, or until the note
is paid in full. 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, 2012 and 50% from August 1, 2012 through February 1, 2014. At December
31, 2012 the balance of the note had been paid in full.
Limited Revenue Tax Increment Note (North Bays — 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 shall have no obligation to pay unpaid balance of principal or
accrued interest that may remain after the final payment on February 1, 2014. At December 31, 2012
the principal amount outstanding on the note was $228,755.
79
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
F. COMMITTED CONTRACTS
At December 31, 2012, the City had commitments of $1,794,594 for uncompleted construction
contracts.
Note 13 FUND BALANCE
A. CLASSIFICATIONS
Definitions of fund balance classifications are included in Note 1P. At December 31, 2012, a
summary of the governmental fund balance classifications are as follows:
Nonspendable:
Prepaid items
Contract for deed receivable
Total nonspendable
Restricted for:
Debt service
Park improvements
Tax increment purposes
CATV - public education
Public safety - fire
Total restricted
Assigned for:
Capital improvements
Cable communications
Economic development
Debt service reserve
Total assigned
Unassigned
Total
2009A G.O. Transit Revolving Other
General Refunding Station Assessment Governmental
Fund Bonds Assessment Fund Funds Total
$57,137
57,137
0 0
$463 $57,600
_ 1,372,683 1,372,683
0 1,373,146 1,430,283
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.
80
2,127,765
519,724
-
896,283
3,543,772
-
-
-
1,650,118
1,650,118
-
-
-
1,022,785
1,022,785
-
-
-
106,728
106,728
-
-
-
36,019
36,019
0
2,127,765
519,724
0
3,711,933
6,359,422
-
-
2,785,647
2,373,175
5,158,822
-
-
-
105,822
105,822
-
-
770,000
770,000
-
-
-
696,756
696,756
0
0
0
2,785,647
3,945,753
6,731,400
5,434,641
-
-
-
(646,856)
4,787,785
$5,491,778
$2,127,765
$519,724
$2,785,647
$8,383,976
$19,308,890
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.
80
CITY OF CHANHASSEN, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
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, 2012,
the fund balance of the General Fund exceeded this level.
Note 14 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, 2012 totaled $164,153. Terms of each lease outstanding at year end are as follows:
Lessee
Terms
Current Term
Sprint
$22,138 per year with 3% annual increases
8/1/11 - 7/31/16
Sprint
$23,642 per year with 3% annual increases
12/1/10 - 11/30/15
Verizon
$1,825 per month
5/1/12 - 4/30/17
Nextel West Corp.
$1,825 per month
12/1/12 - 11/30/17
T -Mobile
$2,029 per month with 3% annual increases
11/1/10 - 10/31/15
T -Mobile
$1,970 per month with 3% annual increases
8/1/11 - 7/31/16
StoneBridge Wireless
5% of gross revenues associated with equipment used on property
4/1/06 - 12/31/14
Cingular/AT&T
$1,913 per month with 3% annual increases
8/1/12 - 7/31/17
Note 15 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. 61 The Financial Reporting Entity Omnibus — An Amendment of GASB No. 14 and No. 34.
The provisions of this Statement are effective for financial statements for periods beginning after June 15,
2012.
• Statement No. 65 Items Previously Reported as Assets and Liabilities. The provisions of this Statement
are effective for financial statements for periods beginning after December 15, 2012.
• Statement No. 66 Technical Corrections — 2012. The provisions of this Statement are effective for
financial statements for periods beginning after December 15, 2012.
• Statement No. 67 Financial Reporting for Pension Plans — an amendment of GASB Statement No. 25.
The provisions of this Statement are effective for financial statements 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 financial statements 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 financial statements 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.
The effect these standards may have on future financial statements is not determinable at this time.
81
- This page intentionally left blank -
82
REQUIRED SUPPLEMENTARY INFORMATION
83
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
84
2012
2011
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Revenues:
General property taxes:
Current
$7,234,500
$7,234,500
$7,299,349
$64,849
$7,104,682
Delinquent
180,000
180,000
124,472
(55,528)
136,911
Abatement of property taxes
-
-
-
-
(240,731)
Total general property taxes
7,414,500
7,414,500
7,423,821
9,321
7,000,862
Licenses and permits:
Licenses - general government
4,000
4,000
3,900
(100)
5,400
Licenses - public safety
91,800
91,800
95,785
3,985
129,333
Permits - public safety
717,700
717,700
1,164,300
446,600
1,175,064
Permits - public works
32,000
32,000
46,295
14,295
46,112
Permits - community development
6,500
6,500
7,045
545
5,030
Total licenses and permits
852,000
852,000
1,317,325
465,325
1,360,939
Intergovernmental:
State:
PERA - public safety
20,000
20,000
19,700
(300)
20,326
State aid - fire - public safety
105,000
105,000
116,932
11,932
113,860
Other - general government
45,000
45,000
43,405
(1,595)
44,774
State aid - police - public safety
100,000
100,000
105,604
5,604
109,775
County grant - public works
-
-
-
-
10,000
Total intergovernmental
270,000
270,000
285,641
15,641
298,735
Charges for services:
General government
77,350
77,350
76,396
(954)
77,054
Public safety
7,500
7,500
5,094
(2,406)
5,861
Public works
108,000
108,000
71,813
(36,187)
29,094
Park and recreation
452,850
452,850
410,168
(42,682)
393,572
Community development
11,000
11,000
17,814
6,814
7,446
Total charges for services
656,700
656,700
581,285
(75,415)
513,027
Fines and forfeits:
Public safety
127,500
127,500
119,997
(7,503)
126,571
Refunds and reimbursements:
General government
2,400
2,400
3,060
660
2,442
Public safety
3,300
3,300
13,438
10,138
3,361
Public works
33,500
33,500
46,334
12,834
38,427
Park and recreation
5,800
5,800
3,539
(2,261)
12,329
Community development
-
-
205
205
-
Total refunds and reimbursements
45,000
45,000
66,576
21,576
56,559
Investment income
60,000
60,000
29,148
(30,852)
122,364
Contributions and donations:
General government
500
500
760
260
600
Public safety
2,500
2,500
450
(2,050)
2,800
Park and recreation
28,400
28,400
20,475
(7,925)
22,275
Total contributions and donations
31,400
31,400
21,685
(9,715)
25,675
84
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
85
2012
2011
Budgeted Amounts
Actual
Variance with
Actual
Revenues:
Original
Final
Amounts
Final Budget
Amounts
Other:
General government
$155,500
$155,500
$171,000
$15,500
$213,078
Public safety
4,000
4,000
5,955
1,955
5,442
Total other
159,500
159,500
176,955
17,455
218,520
Total revenues
9,616,600
9,616,600
10,022,433
405,833
9,723,252
Expenditures:
General government:
Legislative:
Current:
Personal services
32,300
32,300
32,004
296
32,597
Contractual services
68,900
68,900
74,763
(5,863)
65,042
Total legislative
101,200
101,200
106,767
(5,567)
97,639
Administrative office:
Current:
Personal services
407,900
407,900
400,234
7,666
389,902
Materials and supplies
500
500
453
47
-
Contractual services
86,600
86,600
59,293
27,307
75,356
Total administrative office
495,000
495,000
459,980
35,020
465,258
Finance:
Current:
Personal services
231,800
231,800
230,749
1,051
229,124
Materials and supplies
200
200
-
200
-
Contractual services
48,000
48,000
54,428
(6,428)
44,717
Total finance
280,000
280,000
285,177
(5,177)
273,841
Election:
Current:
Personal services
22,500
22,500
28,290
(5,790)
2
Materials and supplies
500
500
1,504
(1,004)
4,242
Contractual services
9,100
9,100
21,187
(12,087)
53
Total election
32,100
32,100
50,981
(18,881)
4,297
Legal:
Current:
Contractual services
145,000
145,000
135,086
9,914
147,871
Property assessment:
Current:
Contractual services
112,600
112,600
128,308
(15,708)
118,943
M.I.S.:
Current:
Personal services
179,500
179,500
187,184
(7,684)
178,089
Materials and supplies
1,900
1,900
1,935
(35)
2,293
Contractual services
75,500
75,500
71,836
3,664
70,037
Total M.I.S.
256,900
256,900
260,955
(4,055)
250,419
85
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
86
2012
2011
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
General government: (continued)
City hall:
Current:
Personal services
$72,800
$72,800
$70,803
$1,997
$71,822
Materials and supplies
42,300
$42,300
48,002
(5,702)
43,703
Contractual services
292,700
292,700
267,802
24,898
285,355
Total City hall
407,800
407,800
386,607
21,193
400,880
Library:
Current:
Materials and supplies
3,000
3,000
3,426
(426)
2,614
Contractual services
119,100
119,100
99,123
19,977
112,368
Total library
122,100
122,100
102,549
19,551
114,982
Total general government
1,952,700
1,952,700
1,916,410
36,290
1,874,130
Public safety:
Police:
Current:
Personal services
66,400
66,400
66,683
(283)
75,339
Materials and supplies
5,000
5,000
3,726
1,274
2,707
Contractual services
1,504,800
1,504,800
1,398,350
106,450
1,414,094
Total police
1,576,200
1,576,200
1,468,759
107,441
1,492,140
Fire department:
Current:
Personal services
605,000
605,000
572,604
32,396
533,898
Materials and supplies
45,600
45,600
49,563
(3,963)
50,603
Contractual services
112,000
112,000
147,023
(35,023)
109,729
Total fire department
762,600
762,600
769,190
(6,590)
694,230
Code enforcement:
Current:
Personal services
590,700
590,700
591,817
(1,117)
582,001
Materials and supplies
5,100
5,100
3,089
2,011
5,007
Contractual services
16,300
16,300
12,923
3,377
11,556
Total code enforcement
612,100
612,100
607,829
4,271
598,564
Animal control:
Current:
Personal services
59,500
59,500
52,667
6,833
51,260
Materials and supplies
4,500
4,500
3,676
824
5,209
Contractual services
11,800
11,800
11,255
545
12,427
Total animal control
75,800
75,800
67,598
8,202
68,896
Total public safety
3,026,700
3,026,700
2,913,376
113,324
2,853,830
86
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Expenditures: (continued)
Public works:
Engineering:
Current:
Personal services
Materials and supplies
Contractual services
Total engineering
Street maintenance:
Current:
Personal services
Materials and supplies
Contractual services
Total street maintenance
Street lighting:
Current:
Materials and supplies
Contractual services
Total street lighting
City garage:
Current:
Personal services
Materials and supplies
Contractual services
Capital outlay
Total City garage
Total public works
2012
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Statement 10
Page 4 of 6
2011
Actual
Amounts
$549,700
$549,700
$522,336
$27,364
$511,981
1,300
1,300
1,031
269
244
30,600
30,600
30,001
599
27,058
581,600
581,600
553,368
28,232
539,283
663,500
663,500
666,594
(3,094)
656,586
139,600
139,600
117,644
21,956
123,902
29,700
29,700
27,125
2,575
38,148
832,800
832,800
811,363
21,437
818,636
213,000
213,000
200,561
2,000
2,000
2,791
(791)
3,528
337,900
337,900
353,724
(15,824)
358,218
339,900
339,900
356,515
(16,615)
361,746
344,300
344,300
311,478
267,000
267,000
261,253
5,747
260,342
159,400
159,400
199,481
(40,081)
196,513
66,600
66,600
57,023
9,577
85,362
4,000
4,000
11,145
(7,145)
5,000
497,000
497,000
528,902
(31,902)
547,217
2,251,300
2,251,300
2,250,148
1,152
2,266,882
Parks and recreation:
Parks and recreation commission:
Current:
Materials and supplies 100 100 - 100 -
Contractual services 2,700 2,700 2,218 482 2,311
Total parks and recreation commission 2,800 2,800 2,218 582 2,311
Parks and recreation administration:
Current:
Personal services
129,700
129,700
132,345
(2,645)
128,856
Materials and supplies
600
600
49
551
3,870
Contractual services
7,400
7,400
7,445
(45)
18,457
Total parks and recreation
administration
137,700
137,700
139,839
(2,139)
151,183
Recreation center:
Current:
Personal services
213,000
213,000
200,561
12,439
199,312
Materials and supplies
46,200
46,200
31,747
14,453
40,632
Contractual services
85,100
85,100
79,170
5,930
74,535
Total recreation center
344,300
344,300
311,478
32,822
314,479
87
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
88
2012
2011
Budgeted Amounts
Actual
Variance with
Actual
Original
Final
Amounts
Final Budget
Amounts
Expenditures: (continued)
Parks and recreation: (continued)
Senior citizen center:
Current:
Personal services
$45,400
$45,400
$45,635
($235)
$44,605
Materials and supplies
3,300
3,300
3,111
189
3,285
Contractual services
21,000
21,000
23,714
(2,714)
14,792
Total senior citizen center
69,700
69,700
72,460
(2,760)
62,682
Recreation program:
Current:
Personal services
173,700
173,700
165,726
7,974
168,326
Materials and supplies
19,100
19,100
19,953
(853)
20,441
Contractual services
94,700
94,700
85,234
9,466
87,729
Total recreation program
287,500
287,500
270,913
16,587
276,496
Self-supporting programs:
Current:
Personal services
32,900
32,900
32,303
597
31,496
Materials and supplies
7,700
7,700
7,293
407
6,499
Contractual services
37,000
37,000
20,667
16,333
25,653
Total self-supporting programs
77,600
77,600
60,263
17,337
63,648
Lake Ann Park operations:
Current:
Personal services
8,700
8,700
6,772
1,928
6,274
Materials and supplies
7,200
7,200
10,963
(3,763)
7,308
Contractual services
45,900
45,900
52,213
(6,313)
38,568
Total Lake Ann Park operations
61,800
61,800
69,948
(8,148)
52,150
Park maintenance:
Current:
Personal services
749,000
749,000
760,754
(11,754)
743,130
Materials and supplies
83,900
83,900
81,679
2,221
98,671
Contractual services
90,300
90,300
105,567
(15,267)
86,812
Capital outlay
-
-
-
-
1,395
Total park maintenance
923,200
923,200
948,000
(24,800)
930,008
Downtown maintenance:
Current:
Contractual services
-
-
4,169
(4,169)
2,829
Recreation sports:
Current:
Personal services
13,200
13,200
12,371
829
7,557
Materials and supplies
8,300
8,300
8,590
(290)
8,834
Contractual services
200
200
254
(54)
412
Total recreation sports
21,700
21,700
21,215
485
16,803
Total parks and recreation
1,926,300
1,926,300
1,900,503
25,797
1,872,589
88
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
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
2012
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Statement 10
Page 6 of 6
2011
Actual
Amounts
$ -
$ -
$3,326
($3,326)
$ -
200
200
-
200
-
4,000
4,000
2,664
1,336
3,241
4,200
4,200
5,990
(1,790)
3,241
410,500
410,500
369,531
40,969
394,942
400
400
736
(336)
83
12,000
12,000
15,352
(3,352)
4,651
422,900
422,900
385,619
37,281
399,676
22,800
22,800
23,254
(454)
22,685
-
-
31
(31)
-
9,700
9,700
9,183
517
8,680
32,500
32,500
32,468
32
31,365
459,600
459,600
424,077
35,523
434,282
9,616,600
9,616,600
9,404,514
212,086
9,301,713
0
0
617,919
617,919
421,539
(421,539) (421,539) (395,759)
$0 $0 196,380 $196,380
5,295,398
$5,491,778
25,780
5,269,618
$5,295,398
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.
89
CITY OF CHANHASSEN, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2012
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.
►! 1
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.
►! 1
Isle] LyiI I IzIIki[r1_P►1111zI7►y/1bill-JlzIs]kiI►viLl1L67:a1I1►117J1►L1kiINF—1"
STATEMENTS AND SCHEDULES
91
IIIs] Ll1IT, /_11101MISIT/:I:7k1LTA 14 11, k EYE all 0 101.1
92
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).
CITY OF CHANHASSEN, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Due from other funds
Property taxes receivable
Prepaid items
Contract for deed receivable
Special assessments receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Due to other funds
Interfund payable
Salaries payable
Contracts payable
Deferred revenue
Total liabilities
Fund balance:
Nonspendable
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities and fund balance
Special Debt Capital
Revenue Service Project
Statement 11
Totals
Nonmaj or
Governmental Funds
2012 2011
$964,288
$1,584,209
$5,987,276
$8,535,773
$10,260,893
4,740
4,714
28,705
38,159
40,942
-
-
590,919
590,919
152,910
55,477
-
73,982
129,459
690,022
-
-
-
-
867
-
4,116
6,925
11,041
15,682
463
-
-
463
12,662
-
-
1,416,079
1,416,079
-
-
77,520
733,126
810,646
927,118
$1,024,968
$1,670,559
$8,837,012
$11,532,539
$12,101,096
$4,056
$ -
$247,883
$251,939
$528,841
-
-
616,036
616,036
9,666
-
-
-
-
153,777
-
-
646,856
646,856
729,253
1,880
-
-
1,880
1,586
-
-
1,670
1,670
74,282
-
77,520
1,552,662
1,630,182
927,118
5,936
77,520
3,065,107
3,148,563
2,424,523
463
-
1,372,683
1,373,146
12,662
142,747
896,283
2,672,903
3,711,933
4,448,994
875,822
696,756
2,373,175
3,945,753
5,945,037
-
-
(646,856)
(646,856)
(730,120)
1,019,032
1,593,039
5,771,905
8,383,976
9,676,573
$1,024,968
$1,670,559
$8,837,012
$11,532,539
$12,101,096
ZZ
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Investment income
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
Nonmaj or
Governmental Funds
2012 2011
$ - $593,800 $1,000,000 $1,593,800 $1,670,420
- 533,011 533,011 566,045
278,033 278,033 20,387
- 1,866,144 1,866,144 1,125,934
178,334 131,328 309,662 133,527
218,535 7,388 73,712 299,635 282,589
21,232 7,821 43,150 72,203 292,546
15,208 - - 15,208 25,010
- - 186,454 186,454 60,882
47 - 87,036 87,083 628,003
255,022 787,343 4,198,868 5,241,233 4,805,343
183,778 6,000 220,302 410,080 305,849
30,830 - 69,774 100,604 25,314
- - 1,434,116 1,434,116 1,040,085
- 254,211 254,211 35,295
- - 218,326 218,326 366,850
12,106 - 63,120 75,226 129,535
- - 39,314 39,314 52,645
- - 910,619 910,619 655,634
- - 1,310,366 1,310,366 308,129
- 440,000 - 440,000 420,000
- 354,497 - 354,497 374,032
226,714 800,497 4,520,148 5,547,359 3,713,368
28,308 (13,154) (321,280) (306,126) 1,091,975
- 110,270 467 110,737 1,148,742
(1,712,590) - (859,618) (2,572,208) (2,383,617)
(1,712,590) 110,270 (859,151) (2,461,471) (1,234,875)
- 1,475,000 1,475,000 -
(1,684,282) 97,116 294,569 (1,292,597) (142,900)
2,703,314 1,495,923 5,477,336 9,676,573 9,819,473
$1,019,032 $1,593,039 $5,771,905 $8,383,976 $9,676,573
►! .
- This page intentionally left blank -
E
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.
M
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Statement 13
Total assets $36,019 $218,949 $770,000 $1,024,968 $2,715,698
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $4,056 $ - $4,056 $3,038
Salaries payable - 1,880 - 1,880 1,586
Contracts payable - - - - 7,760
Total liabilities 0 5,936 0 5,936 12,384
Fund balance:
Nonspendable
201
- 463
220 Economic
Restricted
36,019 106,728
Contribution
210 CATV
Development
Total Nonmajor Special
770,000 875,822
Fund
Fund
Authority
Revenue Funds
2,703,314
2012 2011
Assets:
Cash and investments
$33,726
$160,562
$770,000
$964,288 $2,026,178
Accrued interest receivable
242
4,498
-
4,740 3,827
Accounts receivable - net
2,051
53,426
-
55,477 685,688
Prepaid items
-
463
-
463 5
Total assets $36,019 $218,949 $770,000 $1,024,968 $2,715,698
Liabilities and Fund Balance
Liabilities:
Accounts payable $ - $4,056 $ - $4,056 $3,038
Salaries payable - 1,880 - 1,880 1,586
Contracts payable - - - - 7,760
Total liabilities 0 5,936 0 5,936 12,384
Fund balance:
Nonspendable
- 463
- 463
5
Restricted
36,019 106,728
- 142,747
168,147
Assigned
- 105,822
770,000 875,822
2,535,162
Total fund balance
36,019 213,013
770,000 1,019,032
2,703,314
Total liabilities and fund balance $36,019 $218,949 $770,000 $1,024,968 $2,715,698
WE
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
Other financing sources (uses):
Transfers out
201
(1,300,000)
220 Economic
(1,712,590)
(154,433)
Total other financing sources (uses)
Contribution
210 CATV
Development
Total Nonmajor Special
Revenue
Net change in fund balance
Fund
Fund
Authority
Funds
577,751
Fund balance - January 1
51,231
1,482,083
1,170,000
2012
2011
Revenues:
$36,019
$213,013
S770,000
$1,019,032
$2,703,314
Franchise fees
$ -
$218,535
$ -
$218,535
$231,661
Investment income
410
8,232
12,590
21,232
39,391
Contributions and donations
15,208
-
-
15,208
25,010
Other
-
47
-
47
625,855
Total revenues
15,618
226,814
12,590
255,022
921,917
Expenditures:
Current:
Personal services
-
88,770
-
88,770
86,093
Materials and supplies
-
39,195
-
39,195
40,382
Contractual services
30,830
55,813
-
86,643
63,258
Capital outlay:
General government
-
12,106
-
12,106
-
Total expenditures
30,830
195,884
0
226,714
189,733
Revenues over expenditures
(15,212)
30,930
12,590
28,308
732,184
Other financing sources (uses):
Transfers out
-
(1,300,000)
(412,590)
(1,712,590)
(154,433)
Total other financing sources (uses)
0
(1,300,000)
(412,590)
(1,712,590)
(154,433)
Net change in fund balance
(15,212)
(1,269,070)
(400,000)
(1,684,282)
577,751
Fund balance - January 1
51,231
1,482,083
1,170,000
2,703,314
2,125,563
Fund balance - December 31
$36,019
$213,013
S770,000
$1,019,032
$2,703,314
P•
- This page intentionally left blank -
100
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.
101
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Assets:
Cash and investments
Accrued interest receivable
Due from other funds
Property taxes receivable
Special assessments receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Due to other funds
Deferred revenue
Total liabilities
Fund balance:
Statement 15
$750,636 $11,836 $59,787 $848,300 $1,670,559 $1,607,900
$ - $ - $ - $ - $ - $184
199
53,880 - 23,640 - 77,520 111,594
53,880 0 23,640 0 77,520 111,977
Restricted -
3522000
952,724
367 2008A
- - - 696,756
300
Public
- - - -
G.O. Public
Total fund balance 696,756
Permanent
Project
Works
Total liabilities and fund balance $750,636
Revolving
Revenue
360 2004A
Facility
Totals Nonmajor Debt
Debt
Bonds
G.O. Bonds
Bonds
Service Funds
2012 2011
$694,429
$11,746
$36,103
$841,931
$1,584,209 $1,486,984
2,327
90
44
2,253
4,714 4,580
-
-
-
-
- 199
-
-
-
4,116
4,116 4,543
53,880
-
23,640
-
77,520 111,594
$750,636 $11,836 $59,787 $848,300 $1,670,559 $1,607,900
$ - $ - $ - $ - $ - $184
199
53,880 - 23,640 - 77,520 111,594
53,880 0 23,640 0 77,520 111,977
Restricted -
11,836 36,147 848,300 896,283
952,724
Assigned 696,756
- - - 696,756
543,398
Unassigned -
- - - -
(199)
Total fund balance 696,756
11,836 36,147 848,300 1,593,039
1,495,923
Total liabilities and fund balance $750,636
$11,836 $59,787 $848,300 $1,670,559
$1,607,900
102
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 16
CHANGES IN FUND BALANCES
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
Revenues:
General property taxes
3522000
362 2004C
367 2008A
300
Public
Taxable
G.O. Public
Permanent
Project
360 2004A G.O. T.I.
Works
Revolving
Revenue
G.O. Refunding
Facility Totals Nonmajor Debt
Debt
Bonds
Bonds Bonds
Bonds Service Funds
2012 2011
Revenues:
General property taxes
$ - $
- $ - $ - $593,800 $593,800
$720,420
Special assessments
142,105
- 36,229 - - 178,334
133,400
Charges for services
7,388
- - - - 7,388
39,072
Investment income
3,865
- 117 - 3,839 7,821
19,982
Total revenues
153,358
0 36,346 0 597,639 787,343
912,874
Expenditures:
Current:
General government
Debt service:
Principal
Interest and paying agent fees
Total expenditures
120,000
3,210
0 123,210
Revenues over (under) expenditures 153,358 (123,210)
Other financing sources:
6,000 6,000 100
- 65,000
255,000
440,000
420,000
- 45,270
306,017
354,497
374,032
0 110,270
567,017
800,497
794,132
36,346 (110,270)
30,622
(13,154)
118,742
Transfer in - - - 110,270 - 110,270 447,361
Net change in fund balance 153,358 (123,210) 36,346 0 30,622 97,116 566,103
Fund balance - January 1 543,398 135,046 (199) - 817,678 1,495,923 929,820
Fund balance - December 31 $696,756 $11,836 $36,147 $0 $848,300 $1,593,039 $1,495,923
103
- This page intentionally left blank -
104
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 interf ind 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, 462 Downtown Transit Station TIF #10, 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.
604 TH 101 Improvements — Lyman to Pioneer — Accounts for the street and utility
improvements of TH101 from Lyman Blvd to Pioneer Trail.
105
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2012
With Comparative Totals For December 31 2011
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Due from other funds
Property taxes receivable
Prepaid items
Contract for deed receivable
Special assessments receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Due to other governmental units
Due to other funds
Interfund loan payable
Contracts payable
Deferred revenue
Total liabilities
Fund balance:
$123,973 $4,345 $ - $189 $47,079 $10,827
- 616,034 - 2 - -
646,856 - - -
- 1,670 - -
- - 733,126 477,562 - -
123,973 620,379 1,379,982 479,423 47,079 10,827
Nonspendable - - - - 1,372,683 -
Restricted - 1,650,118 - - - 4,231
Assigned 1,309,765 - - 465,954 76,054 -
Unassigned - - (646,856) - - -
Total fund balance 1,309,765 1,650,118 (646,856) 465,954 1,448,737 4,231
Total liabilities and fund balance $1,433,738 $2,270,497 $733,126 $945,377 $1,495,816 $15,058
106
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
$1,332,850
$2,260,393
$ -
$364,776
$79,670
$15,035
8,009
10,104
-
1,654
67
23
13,357
-
-
577,562
-
-
73,982
-
-
-
-
-
5,540
-
-
1,385
-
-
-
-
-
-
1,416,079
-
-
-
733,126
-
-
-
$1,433,738
$2,270,497
$733,126
$945,377
$1,495,816
$15,058
$123,973 $4,345 $ - $189 $47,079 $10,827
- 616,034 - 2 - -
646,856 - - -
- 1,670 - -
- - 733,126 477,562 - -
123,973 620,379 1,379,982 479,423 47,079 10,827
Nonspendable - - - - 1,372,683 -
Restricted - 1,650,118 - - - 4,231
Assigned 1,309,765 - - 465,954 76,054 -
Unassigned - - (646,856) - - -
Total fund balance 1,309,765 1,650,118 (646,856) 465,954 1,448,737 4,231
Total liabilities and fund balance $1,433,738 $2,270,497 $733,126 $945,377 $1,495,816 $15,058
106
603 Lyman
498 TIF #8 600 Special Blvd
491 TIF #4 494 TIF #5 Presbyterian Assessment Improvements
Entertainment North Bay Homes Projects 06-03
Statement 17
604 TH101
Improvements -
Lyman to Totals Nonmajor Capital
Pioneer Project Funds
2012 2011
$548,628 $161,181 $329,569 $78,931 $433,034 $383,209 $5,987,276
$6,747,731
2,227 1,036 750 336 1,676 2,823 28,705
32,535
- - - - - - 590,919
152,910
- - - - - - 73,982
4,334
- - - - - - -
668
- - - - - - 6,925
11,139
- - - - - - -
12,657
- - - - - - 1,416,079
-
- - - - - - 733,126
815,524
$550,855 $162,217 $330,319 $79,267 $434,710 $386,032 $8,837,012
$7,777,498
$ -
$24,837
$ - $
-
$ -
$36,633
$247,883
$525,619
-
-
-
-
-
-
616,036
9,666
-
-
-
-
-
-
-
153,578
-
-
-
-
-
-
646,856
729,253
-
-
-
-
-
-
1,670
66,522
-
-
-
-
-
341,974
1,552,662
815,524
0
24,837
0
0
0
378,607
3,065,107
2,300,162
-
-
-
-
-
-
1,372,683
12,657
550,855
137,380
330,319
-
-
-
2,672,903
3,328,123
-
-
-
79,267
434,710
7,425
2,373,175
2,866,477
-
-
-
-
-
-
(646,856)
(729,921)
550,855
137,380
330,319
79,267
434,710
7,425
5,771,905
5,477,336
$550,855
$162,217
$330,319
$79,267
$434,710
$386,032
$8,837,012
$7,777,498
107
- This page intentionally left blank -
108
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, 2012
With Comparative Totals For The Year Ended December 31, 2011
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Investment income
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
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
220,302 - - -
69,774 - - -
75,950 - - 265,069
136,138 118,073 - -
63,120 - - -
39,314 - - -
273,869 - - 159,222
265,697 1,044,669 - -
1,144,164 1,162,742 0 424,291
(236,961) (865,909) 131,328 42,150
467 - - -
(700,000) - (48,263) -
(699,533) 0 (48,263) 0
(936,494)
(865,909)
413 Transit
42,150
400 Capital
410 Park
Station
420 Street
Replacement
Acquisition and
Assessment
Pavement
Fund
Development
Fund
Management
$800,000
$ -
$ -
$200,000
-
278,033
-
-
13,357
-
-
200,000
-
-
131,328
-
18,872
-
-
-
10,732
14,800
-
2,132
59,032
4,000
-
64,309
5,210
-
-
-
907,203
296,833
131,328
466,441
220,302 - - -
69,774 - - -
75,950 - - 265,069
136,138 118,073 - -
63,120 - - -
39,314 - - -
273,869 - - 159,222
265,697 1,044,669 - -
1,144,164 1,162,742 0 424,291
(236,961) (865,909) 131,328 42,150
467 - - -
(700,000) - (48,263) -
(699,533) 0 (48,263) 0
(936,494)
(865,909)
83,065
42,150
2,246,259
2,516,027
(729,921)
423,804
$1,309,765
$1,650,118
($646,856)
$465,954
109
CITY OF CHANHASSEN, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2012
With Comparative Totals For The Year Ended December 31, 2011
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Investment income
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
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
422 Old Public Place TIF
Works Building District
24,059
176 37
3,952 -
81,826 -
85,954 24,096
462 Downtown
Transit Station 491 TIF #4
188,292
- 3,880
112,217 - - -
22,510 - 5,114
112,217 22,510 0 5,114
(26,263) 1,586 0 187,058
- (1,085) (110,270)
0 0 (1,085) (110,270)
1,475,000 - - -
1,448,737 1,586 (1,085) 76,788
- 2,645 1,085 474,067
$1,448,737 $4,231 $0 $550,855
110
Statement 18
Page 2 of 2
-
-
-
-
604 TH101
220,302
116,016
-
498 TIF #8
600 Special
603 Lyman Blvd
Improvements -
69,774
25,314
494 TIF #5
Presbyterian
Assessment
Improvements
Lyman to
Totals Nonmajor Capital Project
North Bay
Homes
Projects
06-03
Pioneer
Funds
254,211
35,295
168,202
22,500
-
-
2012
2011
$ -
$ -
$ -
$ -
$ -
$1,000,000
$950,000
81,376
239,284
-
-
-
533,011
566,045
-
-
-
-
-
278,033
20,387
-
-
-
194,379
1,458,408
1,866,144
1,125,934
-
-
-
-
-
131,328
127
-
-
-
54,840
-
73,712
11,856
2,043
1,399
526
-
7,425
43,150
233,173
-
-
-
55,161
-
186,454
60,882
-
-
-
-
-
87,036
2,148
83,419
240,683
526
304,380
1,465,833
4,198,868
2,970,552
-
-
-
-
-
220,302
116,016
-
-
-
-
-
69,774
25,314
-
-
-
-
980,880
1,434,116
1,040,085
-
-
-
-
-
254,211
35,295
168,202
22,500
-
-
-
218,326
366,850
-
-
-
-
-
63,120
129,535
-
-
-
-
-
39,314
52,645
-
-
-
-
477,528
910,619
655,634
-
-
-
-
-
1,310,366
308,129
168,202
22,500
0
0
1,458,408
4,520,148
2,729,503
(84,783)
218,183
526
304,380
7,425
(321,280)
241,049
-
-
-
-
-
467
701,381
-
-
-
-
-
(859,618)
(2,229,184)
0
0
0
0
0
(859,151)
(1,527,803)
-
-
-
-
-
1,475,000
-
(84,783)
218,183
526
304,380
7,425
294,569
(1,286,754)
222,163
112,136
78,741
130,330
-
5,477,336
6,764,090
$137,380
$330,319
$79,267
$434,710
$7,425
$5,771,905
$5,477,336
111
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, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Revenues:
Investment income
Contributions and donations
Total revenues
Expenditures:
Current:
Contractual services
Revenues over (under) expenditures
Fund balance - January 1
Fund balance - December 31
2012
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
2011
Actual
Amnuntc
$700
$700
$410
($290)
$1,483
18,000
18,000
15,208
(2,792)
25,010
18,700
18,700
15,618
(3,082)
26,493
18,700 18,700 30,830 (12,130) 17,500
$0 $0
112
(15,212) ($15,212) 8,993
51,231 42,238
$36,019 $51,231
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, 2012
With Comparative Actual Amounts For The Year Ended December 31, 2011
Revenues:
Franchise fees
Investment income
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
2012
Budgeted Amounts
Original Final
Actual Variance with
Amounts Final Budget
2011
Actual
$230,000 $230,000 $218,535
($11,465)
$231,661
10,000 10,000 8,232
(1,768)
23,475
- - 47
47
625,855
240,000 240,000 226,814
(13,186)
880,991
91,300
91,300
88,770
2,530
86,093
6,500
6,500
39,195
(32,695)
40,382
5,100
5,100
55,813
(50,713)
45,758
-
-
12,106
(12,106)
-
102,900
102,900
195,884
(92,984)
172,233
137,100
137,100
30,930
(106,170)
708,758
- - (1,300,000) (1,300,000)
$137,100 $137,100 (1,269,070) ($1,406,170)
113
1,482,083
$213,013
708,758
773,325
$1,482,083
- This page intentionally left blank -
114
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.
115
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF NET POSITION
AGENCY FUNDS
December 31, 2012
With Comparative Totals For December 31, 2011
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
815 Escrow
r—A
913 Moon
Valley
Restoration
r—a
Statement 21
Totals
'1 /1 1 'l 1(1 1 1
$1,007,416 $86,306 $1,093,722 $895,645
$1,007,416 $86,306 $1,093,722 $895,645
116
CITY OF CHANHASSEN, MINNESOTA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2012
Escrow Fund
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Moon Valley_ Restoration Fund
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Totals - All Amy Funds
Assets:
Cash and investments
Liabilities:
Escrow deposits payable
Balance
01/01/12 Additions Deletions
Statement 22
Balance
12/31/12
$809,539 $944,738 $746,861 $1,007,416
$809,539 $944,738 $746,861 $1,007,416
$86,106 $200 $ - $86,306
$86,106 $200 $ - $86,306
$895,645 $944,938 $746,861 $1,093,722
$895,645 $944,938 $746,861 $1,093,722
117
- This page intentionally left blank -
118
III. STATISTICAL SECTION (UNAUDITED)
two
- This page intentionally left blank -
120
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
Pa
Financial Trends
These tables contain trend information to help the reader understand how the 122-130
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 132-137
significant local revenue source, the property tax.
Debt Capacity
These tables present information to help the reader assess the affordability of the 138-142
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 143-145
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 146-150
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.
121
CITY OF CHANHASSEN, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
122
2003
2004
2005
2006
Governmental activities:
Net investment in capital assets
$76,644,369
$77,583,392
$72,418,684
$70,216,944
Restricted:
Debt service
2,565,486
5,762,414
10,174,502
7,687,155
Park improvements
-
-
-
-
Tax increment purposes
779,619
630,566
1,049,047
1,063,589
Other purposes
-
-
-
-
Unrestricted
11,477,638
10,632,184
11,239,658
16,220,834
Total governmental activities net position
$91,467,112
$94,608,556
$94,881,891
$95,188,522
Business -type activities:
Net investment in capital assets
$46,050,122
$38,888,555
$37,479,967
$47,807,323
Restricted
-
-
-
-
Unrestricted
12,779,701
21,908,224
23,767,122
15,039,021
Total business -type activities net position
$58,829,823
$60,796,779
$61,247,089
$62,846,344
Primary government:
Net investment in capital assets
$122,694,491
$116,471,947
$109,898,651
$118,024,267
Restricted:
Debt service
2,565,486
5,762,414
10,174,502
7,687,155
Park improvements
-
-
-
-
Tax increment purposes
779,619
630,566
1,049,047
1,063,589
Other purposes
-
-
-
-
Unrestricted
24,257,339
32,540,408
35,006,780
31,259,855
Total primary government net position
$150,296,935
$155,405,335
$156,128,980
$158,034,866
122
Table 1
2007
2008
2009
2010
2011
2012
$68,982,379
$70,611,368
$72,106,198
$73,272,450
$70,866,708
$69,987,563
11,047,062
12,165,653
6,461,780
9,655,951
5,709,727
5,905,553
-
-
-
2,088,246
2,516,027
1,650,118
797,064
621,915
840,857
693,309
812,096
1,022,785
-
-
-
121,137
168,147
142,747
14,631,166
15,171,391
14,421,042
8,348,968
12,888,980
14,544,111
$95,457,671
$98,570,327
$93,829,877
$94,180,061
$92,961,685
$93,252,877
$52,502,257
$55,541,752
$55,496,919
$57,028,340
$55,430,138
$54,475,353
17,292,106
13,117,323
12,129,049
10,259,836
9,484,947
10,631,342
$69,794,363
$68,659,075
$67,625,968
$67,288,176
$64,915,085
$65,106,695
$121,484,636
$126,153,120
$127,603,117
$130,300,790
$126,296,846
$124,462,916
11,047,062
12,165,653
6,461,780
9,655,951
5,709,727
5,905,553
-
-
-
2,088,246
2,516,027
1,650,118
797,064
621,915
840,857
693,309
812,096
1,022,785
-
-
-
121,137
168,147
142,747
31,923,272
28,288,714
26,550,091
18,608,804
22,373,927
25,175,453
$165,252,034
$167,229,402
$161,455,845
$161,468,237
$157,876,770
$158,359,572
123
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
2003 2004 2005 2006
$2,201,345
$2,338,485
$4,518,355
$2,380,103
2,587,019
2,618,307
2,653,304
2,851,926
5,140,028
4,955,598
4,915,435
7,722,466
2,578,585
2,674,954
2,867,364
2,918,645
891,253
2,027,713
595,878
868,749
1,018,936
822,047
505,367
751,964
14,417,166
15,437,104
16,055,703
17,493,853
1,973,913
1,985,908
2,656,381
2,754,201
2,774,231
2,686,146
2,719,156
3,069,069
784,557
957,084
1,039,721
1,317,089
5,532,701
5,629,138
6,415,258
7,140,359
$19,949,867 $21,066,242 $22,470,961 $24,634,212
$1,996,169
$1,892,579
$2,166,022
$3,612,021
1,075,631
997,114
1,196,103
1,218,816
43,732
61,801
104,962
162,946
267,126
370,090
361,093
671,674
1,171,589
2,633,916
5,080,512
2,506,822
4,554,247
5,955,500
8,908,692
8,172,279
1,582,632
1,656,911
1,703,501
2,111,230
1,633,440
1,748,929
1,905,206
2,008,356
258,132
265,090
299,445
424,702
13,221
6,381
1,620
539
1,694,998
3,528,270
1,961,122
2,501,598
5,182,423
7,205,581
5,870,894
7,046,425
Total primary government program revenues $9,736,670 $13,161,081 $14,779,586 $15,218,704
124
Table 2
Page 1 of 2
2007
2008
2009
2010
2011
2012
$2,439,716
$2,469,055
$2,597,147
$2,898,608
$2,565,486
$2,690,853
3,098,068
3,062,941
3,158,465
3,227,396
3,061,122
3,176,441
7,010,981
6,220,816
9,123,165
6,308,023
8,607,534
7,743,147
3,023,032
3,025,987
3,663,124
3,046,718
2,921,593
3,114,340
1,052,104
704,979
628,339
879,048
799,379
646,262
835,059
652,015
1,031,567
880,384
838,421
725,881
17,458,960
16,135,793
20,201,807
17,240,177
18,793,535
18,096,924
3,112,575
3,234,139
3,311,129
3,443,583
3,581,955
3,646,787
3,177,366
3,072,588
3,276,042
3,252,510
3,317,329
3,235,324
1,238,914
1,121,197
1,093,165
1,202,556
1,173,115
1,347,345
7,528,855
7,427,924
7,680,336
7,898,649
8,072,399
8,229,456
$24,987,815
$23,563,717
$27,882,143
$25,138,826
$26,865,934
$26,326,380
$2,171,558
$1,810,545
$1,085,754
$1,331,374
$1,381,326
$1,595,358
1,132,448
1,115,903
1,064,173
1,189,560
1,047,726
1,394,356
145,682
124,633
122,496
123,609
126,571
119,997
452,798
346,023
363,540
414,654
692,428
404,663
7,464,697
3,221,636
1,265,287
4,175,655
1,646,573
2,953,496
11,367,183
6,618,740
3,901,250
7,234,852
4,894,624
6,467,870
2,461,205
2,408,379
2,689,170
2,424,634
2,611,327
3,146,886
2,186,622
2,187,209
2,378,111
2,365,358
2,297,677
2,434,370
452,148
479,318
512,761
538,688
534,473
590,323
45,172
36,350
5,332
2,984
12,589
121,925
3,340,598
1,527,624
1,684,982
1,593,289
1,086,655
1,861,689
8,485,745
6,638,880
7,270,356
6,924,953
6,542,721
8,155,193
$19,852,928
$13,257,620
$11,171,606
$14,159,805
$11,437,345
$14,623,063
125
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
2003 2004 2005 2006
($9,862,919)
($9,481,604)
($7,147,011)
($9,321,574)
(350,278)
1,576,443
(544,364)
(93,934)
(10,213,197)
(7,905,161)
(7,691,375)
(9,415,508)
8,330,561
8,398,790
9,451,141
9,165,278
4,804,019
4,623,927
675,117
315,398
59,867
55,879
45,455
28,592
240,859
164,712
387,370
905,930
98,812
222,642
93,792
34,644
582,333
540,646
23,795
-
(121,355) (96,195) (481,824) (821,637)
13,995,096 13,910,401 10,194,846 9,628,205
90,738 255,510
466,750
768,600
- 255,279
46,100
102,952
121,355 96,195
481,824
821,637
212,093 606,984
994,674
1,693,189
$14,207,189 $14,517,385 $11,189,520 $11,321,394
$4,132,177
$4,428,797
$3,047,835
$306,631
(138,185)
2,183,427
450,310
1,599,255
$3,993,992
$6,612,224
$3,498,145
$1,905,886
126
2007
($6,091,777)
956,890
(5,134,887)
9,419,763
420,526
189,616
1,397,746
10,806
(5,077,531)
6,360,926
786,455
127,143
5,077,531
5,991,129
$12,352,055
$269,149
6,948,019
$7,217,168
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)
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)
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
$12,336,629 $10,936,980 $10,991,413
$3,112,656
(1,082,124)
$2,030,532
($4,740,450)
(1,033,107)
($5,773,557)
127
$350,184
(337,792)
$12,392
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)
Table 2
Page 2 of 2
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
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
2003
2004
2005
2006
$17,056
$21,003
$20,239
$17,376
3,328,530
3,125,910
3,199,800
3,279,050
2,571,949
3,128,630
3,731,023
1,523,844
$5,917,535
$6,275,543
$6,951,062
54,820,270
$4,126,973
$6,942,810
$6,597,316
$5,300,782
567,443
533,276
489,370
431,665
3,638,592
3,978,818
4,114,820
13,458,697
5,948,538
1,089,942
-
25,020
(3,020,544)
-
3,403,769
148,784
(2,013,776)
(893,811)
(738,510)
(214,183)
$9,247,226
$11,651,035
$13,866,765
$19,150,765
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.
128
Table 3
2007
2008
2009
2010
2011
2012
$13,210
$21,173
$46,750
$55,826
$ -
$ -
3,416,950
3,586,750
3,690,000
3,754,000
-
-
2,061,126
1,273,796
1,137,109
1,459,792
-
-
-
-
-
-
17,280
57,137
-
-
-
-
5,278,118
5,434,641
$5,491,286
$4,881,719
$4,873,859
$5,269,618
$5,295,398
$5,491,778
$7,335,225
$6,671,271
$2,950,284
$5,642,029
$ -
$ -
548,438
525,692
668,992
2,082,929
-
-
9,934,936
18,732,625
11,418,006
7,487,198
-
-
215,298
237,721
342,877
356,724
-
-
(239,434)
(11,584)
(2,001,149)
(786,209)
-
-
-
-
-
-
12,662
1,373,146
-
-
-
-
10,426,585
6,359,422
-
-
-
-
6,561,411
6,731,400
-
-
-
-
(730,120)
(646,856)
$17,794,463
$26,155,725
$13,379,010
$14,782,671
$16,270,538
$13,817,112
129
CITY OF CHANHASSEN, MINNESOTA
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
General property taxes
Tax increment collections
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment income
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
Bond issuance costs
Developer assistance
Other
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Bond premium
Bonds issued
Redemption of refunding bonds
Loans issued
Transfers in
Transfers out
Bond discount
Sale of capital assets
Special item - sale of old public works building
Total other financing sources (uses)
Net change in fund balance
Debt service as a percentage of
noncapital expenditures
Debt service as percentage of
total expenditures
2003
2004
2005
2006
$8,292,083
$8,443,464
$9,417,527
$9,140,601
4,975,860
4,917,923
675,798
$315,398
1,996,168
1,892,579
2,166,022
3,727,297
1,082,549
1,013,704
1,244,656
2,171,565
1,963,431
21262,731
1,113,922
1,922,944
839,522
943,744
863,958
899,015
43,732
61,801
104,962
162,946
240,859
164,712
387,370
905,930
9,675
24,749
71,198
43,949
364,151
290,629
430,171
279,549
19,808,030
20,016,036
16,475,584
19,569,194
2,072,051
2,203,607
2,722,171
2,090,565
2,424,125
2,461,410
2,547,676
2,656,923
1,958,092
1,773,655
2,367,652
4,425,237
1,629,856
1,622,199
1,658,200
1,877,109
312,446
326,134
372,938
451,092
-
-
311,250
98,396
-
99,872
10,265
38,593
3,427,236
11787,737
2,334,577
6,431,594
2,362
615,207
462,794
377,367
10,700,000
7,752,000
2,035,000
1,375,000
1,070,394
687,299
691,230
591,614
13,635
29,317
-
36,987
578,291
1,660,088
230,353
111,791
93,954
11,046
897,523
300,000
24,282,442
21,029,571
16,641,629
20,862,268
(4,474,412)
(1,013,535)
(166,045)
(1,293,074)
630,000
3,240,000
2,590,000
6,640,000
-
-
-
(3,560,000)
-
-
105,419
708,003
(121,355)
(54,242)
338,080
702,889
(3,937)
(10,387)
-
(44,610)
702,596
963,290
23,795
-
4,138,661
4,446,282
1,207,304
3,057,294
($3,267,108)
$3,125,126
$2,891,249
$3,153,208
58.4%
50.2%
22.0%
14.8%
48.5%
40.3%
16.4%
9.6%
130
Table 4
2007 2008 2009 2010 2011 2012
$9,403,109
$9,582,333
$9,834,389
$10,141,168
$9,760,052
$10,143,011
$420,526
$574,101
473,674
539,523
566,045
533,011
2,171,558
1,810,545
1,085,754
1,331,374
1,381,326
1,595,358
1,148,034
2,147,970
397,438
401,550
1,425,525
2,151,785
3,922,517
623,893
540,151
790,426
1,242,040
1,667,881
738,669
841,209
950,760
923,550
795,616
880,920
145,682
124,633
122,496
123,609
126,571
119,997
1,397,746
1,150,993
357,953
222,719
505,541
173,523
47,428
43,410
47,206
58,016
50,685
36,893
51,247
61,707
132,616
117,441
253,030
404,426
238,030
170,688
213,272
846,523
264,038
19,799,695
17,188,364
14,042,216
14,877,823
16, 817,365
17,819,447
2,116,928
2,102,512
2,070,698
2,525,326
2,162,479
2,326,490
2,924,751
2,885,296
2,979,044
3,077,038
2,896,644
3,013,980
3,735,950
2,786,397
5,710,804
2,739,704
4,779,067
3,726,158
1,848,880
1,933,353
2,487,985
1,901,564
1,906,489
2,154,714
841,306
468,819
527,919
698,818
502,916
621,295
6,734
233,600
143,663
473,753
129,535
75,226
505,215
54,284
55,152
65,667
52,645
39,314
6,693,387
4,677,179
8,179,324
3,995,444
2,122,641
3,502,371
1,491,848
642,508
235,292
490,737
309,524
1,310,366
1,750,000
2,689,552
2,553,002
2,370,000
1,025,000
5,100,000
769,212
874,848
920,529
888,843
853,152
814,621
-
93,811
73,182
46,505
-
-
206,753
226,055
90,354
176,643
298,216
21,108
22,890,964
19,668,214
26,026,948
19,450,042
17,038,308
22,705,643
(3,091,269)
(2,479,850)
(11,984,732)
(4,572,219)
(220,943)
(4,886,196)
-
-
226,991
35,964
-
-
-
7,550,000
6,020,000
5,200,000
-
-
-
-
(8,387,123)
-
-
-
3,014,744
24,839
-
-
-
-
537,564
2,646,011
1,324,015
1,105,000
1,734,590
1,203,031
(1,163,065)
-
-
-
-
(48,881)
16,740
10,695
16,274
30,675
-
-
-
-
-
-
-
1,475,000
2,405,983
10,231,545
(799,843)
6,371,639
1,734,590
2,629,150
($685,286)
$7,751,695
($12,784,575)
$1,799,420
$1,513,647
($2,257,046)
18.0%
26.4%
20.5%
23.2%
13.3%
33.3%
11.0%
18.6%
13.6%
17.0%
11.0%
26.0%
131
CITY OF CHANHASSEN, MINNESOTA
TAX CAPACITY VALUE AND ESTIMATED MARKET VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Fiscal
Year
Total
All
Commercial/
Ended
Residential
$357,872
Industrial
December 31,
Property
Agricultural
Property
408,070
2003
$17,032,236
$133,300
$5,866,524
2004
19,502,882
141,939
5,904,892
2005
22,438,051
178,598
6,054,042
2006
24,904,864
229,651
6,537,205
2007
27,853,083
316,461
8,114,703
2008
29,821,326
208,789
9,135,911
2009
30,741,292
190,844
9,665,269
2010
30,301,115
170,857
10,229,329
2011
28,951,885
131,751
9,778,491
2012
27,198,238
137,012
9,149,904
Sources: Carver County Taxpayer Services and Hennepin County
132
Total
All
Tax
Other
Capacity
$357,872
$23,389,932
377,531
25,927,244
388,885
29,059,576
408,070
32,079,790
428,203
36,712,450
435,603
39,601,629
471,749
41,069,154
477,663
41,178,964
511,185
39,373,312
520,743
37,005,897
Table 5
Captured Tax
Capacity on
Fiscal
Adjusted
City
Estimated
Tax Capacity
Tax Increment
Disparity
Tax Capacity
Direct Tax
Market
as a Percent
District
Contribution
Value
Rate
Value
of EMV
($3,789,131)
($19,916)
$19,580,885
39.03900
$2,010,114,700
0.97%
(3,958,013)
17,056
21,986,287
32.92200
2,271,332,100
0.97%
(619,902)
60,354
28,500,028
28.11800
2,552,120,200
1.12%
(309,211)
(929,994)
30,840,585
26.63800
2,812,847,100
1.10%
(418,018)
(955,204)
35,339,228
23.78800
3,175,746,500
1.11%
(479,494)
(1,498,894)
37,623,241
23.71300
3,394,928,100
1.11%
(473,702)
(1,627,749)
38,967,703
22.99300
3,501,886,800
1.11%
(532,007)
(1,861,362)
38,785,595
25.18300
3,491,841,800
1.11%
(509,863)
(1,998,912)
36,864,537
26.60256
3,350,141,800
1.10%
(469,759)
(2,038,437)
34,497,701
28.53211
3,153,275,000
1.09%
133
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.
134
City
Overlapping Rates
Fiscal
Direct
School
Carver
Year
Rate(l)
District #112
County
Other
Total
Tax capacity rates (per $100
of adjusted tax capacity value)
2003
39.03900
38.43800
53.13700
7.40200
138.01600
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
Source: Carver County Taxpayer Services
(I )The City Direct Rate is the Urban based rate, not including Market Value levies.
134
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
Taxable
Capacity
Taxpayer
Value
0.9%
289,254
IRET Properties
$369,740
Istar Minnesota LLC
357,098
Rosemount Inc
299,998
LTF Real Estate VRDN I LLC
239,202
Northern States Power Co
224,160
LTF Real Estate CBC I (Chan Club) LLC
207,822
Park Avenue Lofts LLC
203,542
PHM/Chanhassen Inc
197,894
DRF Chanhassen Medical Bldg
193,250
Target Corporation T-0862
193,250
TF James
-
Beddor Enterprises/E J Carlson
-
McGlynn Bakeries Inc #366
-
Hoyt/DTLK LLC
-
Emplast Inc
-
Beddor Enterprises
-
Bloomberg Companies Inc
-
Total
$2,485,956
Total All Property
$35,137,592
Source: Carver County Taxpayer Services
2012 2003
Rank
1
2
3
4
5
6
7
8
9
9
135
Percentage
of Total City Taxable
Capacity Capacity
1.0%
-
0.9%
289,254
0.7%
-
0.6%
203,474
0.6%
-
0.6%
-
0.6%
-
0.5%
-
0.5%
139,040
-
246,404
-
186,138
-
179,250
-
149,948
-
146,832
-
140,004
-
123,654
7.1%
$1,803,998
$18,189,905
Rank
1
3
9
2
4
5
6
7
8
10
Table 7
Percentage
of Total City
Capacity
0.8%
1.4%
1.0%
1.0%
0.8%
0.8%
0.8%
0.7%
9.9%
- This page intentionally left blank -
136
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
2003
$8,639,167
$8,206,001
95.0%
$91,844
$8,297,845
96.0%
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%
112,734
9,560,426
99.8%
2008
9,834,965
9,555,489
97.2%
142,565
9,698,053
98.6%
2009
10,074,565
9,668,713
96.0%
149,220
9,817,933
97.5%
2010
10,213,190
9,918,528
97.1%
(25,704)
9,892,824
96.9%
2011
10,267,390
9,739,125
94.9%
167,127
9,906,252
96.5%
2012
10,153,690
10,005,877
98.5%
-
10,005,877
98.5%
Source: City Finance Department
137
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.
(')The Bonded Debt and Bonded Debt Per Capita are Net of Debt Service Fund Balances. The Definition of "Net
Bonded Debt" in the State of Minnesota would also exclude any Enterprise Fund Debt, Special Assessment
Bonds, Tax Increment Bonds and Revenue Bonds. The "Net Bonded Debt" and "Net Bonded Debt Per Capita"
as defined by the State of Minnesota can be found on Table 11.
(Z)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
138
Business -Type
Governmental Activities
Activities
General
General
Fiscal
Obligation
Revenue
Tax Increment
Improvement
Other
G.O. Revenue
Year
Bonds
Bonds
Bonds
Bonds
Debt
Bonds
2003
$11,475,000
$860,000
$3,075,000
$5,890,000
$40,000
$3,175,000
2004
10,710,000
785,000
1,170,000
4,195,000
-
10,600,000
2005
12,215,000
705,000
1,170,000
3,325,000
105,419
15,545,000
2006
8,170,000
620,000
1,120,000
9,210,000
813,422
14,820,000
2007
7,315,000
530,000
1,070,000
8,455,000
3,828,166
13,915,000
2008
13,905,000
435,000
1,015,000
7,155,000
3,375,125
12,415,000
2009
13,045,000
335,000
960,000
6,625,000
-
11,695,000
2010
15,550,000
230,000
900,000
7,115,000
-
10,955,000
2011
15,025,000
120,000
840,000
6,785,000
-
19,895,000
2012
10,705,000
-
775,000
6,190,000
-
20,410,000
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(')The Bonded Debt and Bonded Debt Per Capita are Net of Debt Service Fund Balances. The Definition of "Net
Bonded Debt" in the State of Minnesota would also exclude any Enterprise Fund Debt, Special Assessment
Bonds, Tax Increment Bonds and Revenue Bonds. The "Net Bonded Debt" and "Net Bonded Debt Per Capita"
as defined by the State of Minnesota can be found on Table 11.
(Z)Information pertaining to Chanhassen Personal Income is not available, information for Carver County was
included instead.
(a) Information not available
138
Table 9
139
Bonded Debt
Per Total
Less:
Percentage
Carver County
Debt Service
of Tax
Bonded Debt
Personal
Total Debt
Fund Balance
Bonded Debt(l)
Capacity
Per Capita(l)
Income (2)
$24,515,000
$1,089,772
$23,425,228
120.22%
$996
0.7%
27,460,000
6,795,406
20,664,594
81.94%
882
0.6%
33,065,419
9,964,653
23,100,766
82.82%
968
0.6%
34,753,422
5,411,318
29,342,104
96.30%
1,228
0.7%
35,113,166
7,623,138
27,490,028
79.02%
1,130
0.6%
38,300,125
6,972,630
31,327,495
83.57%
1,280
0.6%
32,660,000
3,256,510
29,403,490
75.36%
1,190
0.6%
34,750,000
5,949,306
28,800,694
73.47%
1,255
0.6%
42,665,000
7,473,515
35,191,485
93.84%
1,518
0.7%
38,080,000
4,240,529
33,839,471
96.31%
1,441
(a)
139
CITY OF CHANHASSEN, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
December 31, 2012
Governmental Unit
Direct debt:
City of Chanhassen(')
Overlapping debt:
Eastern Carver County School District
Eden Prairie Independent School District
Minnetonka Independent School District
Carver County
Hennepin County
Hennepin Suburban Park District
Hennepin Regulatory Railroad Authority
Metropolitan Council
Subtotal - overlapping debt
Total direct and overlapping debt
(1)Excludes debt related to the City's business -type activities.
Table 10
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.
140
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable*
Debt
$17,670,000
100.00%
$17,670,000
221,350,000
39.50%
87,433,250
73,478,156
0.92%
675,999
87,293,950
0.00%
-
24,070,000
32.59%
7,844,413
673,838,501
0.06%
404,303
72,840,200
0.08%
58,272
38,770,299
0.06%
23,262
193,377,711
0.03%
58,013
1,385,018,817
96,497,513
$1,402,688,817
$114,167,513
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.
140
CITY OF CHANHASSEN, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2012
Market value $3,153,275,000
Applicable percentage 3%
Debt limit 94,598,250
Debt applicable to limit:
Total bonded debt 38,080,000
Less:
Special assessment bonds (6,190,000)
Tax increment bonds (775,000)
Enterprise Fund debt (20,410,000)
Less:
Cash and investments in G.O. Bond Debt Service Fund (1,357,653)
9,347,347
Legal debt margin $85,250,903
Legal Debt Margin Calculation for Fiscal Years 2003 Through 2012
Table 11
141
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
2003
23,524
$40,202,294
$10,571,252
$29,631,042
26.30%
$449
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
14,521,831
90,233,423
13.86%
633
2011
23,179
100,504,254
13,585,258
86,918,996
13.52%
586
2012
23,484
94,598,250
9,347,347
85,250,903
9.88%
398
141
CITY OF CHANHASSEN, MINNESOTA
PLEDGED REVENUE COVERAGE
Last Ten Fiscal Years
Table 12
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
142
Improvement Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections
Principal Interest
Coverage
2003
$1,963,431
$5,446,600
$324,330
0.340
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
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
142
CITY OF CHANHASSEN, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Fiscal
Chanhassen
Year
Population(])
2003
23,524
2004
23,431
2005
23,864
2006
23,889
2007
24,321
2008
24,481
2009
24,699
2010
22,952
2011
23,179
2012
23,484
Chanhassen
Unemployment
Rate (2)
3.3%
3.2%
2.6%
2.7%
3.1%
4.0%
6.0%
5.2%
4.3%
4.7%
Carver County
Unemployment
Rate (2)
4.1%
3.9%
3.4%
3.3%
4.0%
5.0%
7.4%
6.6%
5.7%
5.2%
Carver County
Personal
Income
(Thousands)(3)
Sources: (I )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
$3,286,007
3,562,502
3,878,765
4,165,709
4,583,400
4,884,465
4,633,525
4,968,454
5,357,246
(a)
Table 13
Carver County
Per Capita
Personal
Income (3)
Note: Information pertaining to Chanhassen Personal Income and Per Capita Personal Income is not available, information
for Carver County was included instead.
143
$42,126
44,270
46,587
48,632
52,520
54,998
51,346
54,384
57,830
(a)
- This page intentionally left blank -
144
CITY OF CHANHASSEN, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Six Years Ago(i)
Employer Employees
Rosemount Inc
1,666
Lifetime Fitness
899
Instant Web Companies
887
RR Donnelley
352
General Mills
288
Chanhassen Dinner Theatres
250
Minnesota Landscape Arboretum
234
Exlar Corporation
183
Byerly's
180
ABC/Lyman Lumber
176
Super Value Headquarters
-
Entegris
-
Total 5,115
2012
2006
Table 14
4,917
Source: Survey by City Administration and Finance Departments
(')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.
145
Percentage
Percentage
of Total City
of Total City
Rank
Employment(2)
Employees
Rank
Employment(2)
1
32.6%
1,200
1
24.4%
2
17.6%
-
-
0.0%
3
17.3%
548
4
11.1%
4
6.9%
324
6
6.6%
5
5.6%
600
3
12.2%
6
4.9%
300
7
6.1%
7
4.6%
240
9
4.9%
8
3.6%
-
-
0.0%
9
3.5%
280
8
5.7%
10
3.4%
175
10
3.6%
0.0%
900
2
18.3%
0.0%
350
5
7.1%
4,917
Source: Survey by City Administration and Finance Departments
(')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.
145
CITY OF CHANHASSEN, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Total
Source: City Finance Department
146
67 68 68
Full -Time Equivalent Employees as of December 31,
Function/Program
2003
2004
2005
General government
12
12
12
Public safety
3
3
3
Public works
24
24
25
Parks & recreation
11
11
11
Community development
17
18
17
Total
Source: City Finance Department
146
67 68 68
Table 15
Full -Time Equivalent Employees as of December 31,
2006 2007 2008 2009 2010 2011 2012
12
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
17
16
16
16
15
15
14
69
69
69
69
68
68
67
147
CITY OF CHANHASSEN, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Source: Various City Departments
148
Fiscal Year
Function/Program
2003
2004
2005
Building:
Total permits issued
2,755
2,651
2,884
Total estimated value
$99,521,697
$97,333,708
$71,357,132
Election:
Registered voters
13,723
15,632
15,632
Fire:
Average number of employees
43
43
43
General government:
Area of city - square miles
23.78
23.78
23.78
Average number of permanent full-time
employees (excluding fire department)
67
68
68
Police:
Average number of employees
11
11
13
Number of major crimes
311
1,288
1,068
Water:
Number of customers
6,608
6,710
6,872
Daily average consumption - gallons
3,000,000
2,718,599
2,571,843
Plant capacity - gallons
8,900,000
8,500,000
8,650,000
Source: Various City Departments
148
Table 16
Fiscal Year
2006
2007
2008
2009
2010
2011
2012
3,165
3,013
2,838
2,608
2,910
3,397
3,285
$106,223,825
$125,865,426
$124,885,965
$67,811,817
$65,046,933
$82,991,029
$83,531,808
15,319
15,319
16,544
16,544
15,326
15,326
16,916
44
44
45
45
45
47
48
23.78
23.78
23.78
23.78
23.78
23.78
23.78
69
69
69
69
68
68
67
13
13
14
15
15
15
15
1,297
1,202
1,013
702
647
757
777
6,752
6,804
7,039
7,427
7,620
7,655
7,741
3,163,864
3,031,400
3,200,000
3,642,410
2,698,559
2,257,542
2,570,349
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
8,650,000
149
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
150
Fiscal Year
2003
2004
2005
2
2
2
350
375
375
300
300
365
2
3
3
23
25
25
4
4
4
6
17
17
1
1
1
94.3
95.7
102.5
19.6
21.0
24.7
41.2
42.0
42.0
59.6
61.0
62.7
113.0
115.1
115.4
30
30
30
116.7
120.1
120.8
7
7
8
Table 17
151
Fiscal Year
2006
2007
2008
2009
2010
2011
2012
2
2
2
2
2
2
2
375
383
383
383
396
396
401
365
434
434
434
434
489
503
3
3
3
4
4
4
4
25
26
26
26
26
26
26
4
6
6
6
5
5
5
17
17
17
17
17
17
15
-
-
-
-
-
-
2
1
1
1
1
1
1
1
103.8
106.2
107.0
110.9
111.9
112.0
112.6
25.5
26.9
28.4
31.1
31.9
31.9
31.9
43.0
47.2
53.0
53.6
53.6
56.1
56.4
64.2
66.2
67.1
69.5
71.0
74.5
75.3
116.9
119.6
120.8
123.0
123.6
123.7
123.9
31
31
31
31
31
31
31
123.4
126.0
129.6
135.1
136.8
137.8
138.0
10
11
12
12
12
12
12
151
- This page intentionally left blank -
152
IV. OTHER INFORMATION (UNAUDITED)
153
CITY OF CHANHASSEN, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2012
Revenue bonds:
2000 Public Project Revenue Bonds 4.75%-5.35% 12/01/00 02/01/12
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. Sewer and Water Revenue Bonds, Series 2001A
3.50%-4.65%
07/15/01
Final
G.O. Water Revenue Bonds, Series 2004B
Interest
Issue
Maturity
Bonded indebtedness:
Rates
Date
Date
General obligation bonds:
0.30%-2.15%
10/06/11
02/01/22
G.O. Library Bonds, Series 2002A
1.55%-4.85%
03/01/02
08/01/12
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
Revenue bonds:
2000 Public Project Revenue Bonds 4.75%-5.35% 12/01/00 02/01/12
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. Sewer and Water Revenue Bonds, Series 2001A
3.50%-4.65%
07/15/01
02/01/12
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
154
Exhibit 1
Prior Years
Payable
2012
Payable
Principal
Original
January 1,
December 31,
Due in
Issue
Payments
2012
Issued
Payments
2012
2013
$6,095,000
$2,030,000
$4,065,000
$ -
$4,065,000
$ -
$ -
7,550,000
250,000
7,300,000
-
255,000
7,045,000
265,000
3,660,000
-
3,660,000
-
-
3,660,000
285,000
17,305,000
2,280,000
15,025,000
0
4,320,000
10,705,000
550,000
930,000
810,000
120,000
-
120,000
-
-
1,170,000
330,000
840,000
-
65,000
775,000
70,000
6,020,000
405,000
5,615,000
-
195,000
5,420,000
200,000
1,540,000
-
1,170,000
-
400,000
770,000
770,000
7,560,000
405,000
6,785,000
0
595,000
6,190,000
970,000
1,645,000
1,575,000
70,000
-
70,000
-
-
7,930,000
1,760,000
6,170,000
-
325,000
5,845,000
340,000
5,465,000
1,450,000
4,015,000
-
335,000
3,680,000
3,680,000
5,920,000
-
5,920,000
-
-
5,920,000
220,000
3,720,000
-
3,720,000
-
-
3,720,000
-
-
-
-
1,245,000
-
1,245,000
-
24,680,000
4,785,000
19,895,000
1,245,000
730,000
20,410,000
4,240,000
$53,185,000
$8,610,000
$43,835,000
$1,245,000
$6,230,000
$38,080,000
$5,830,000
155
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION BONDS
December 31, 2012
Exhibit 2
G.O. Tax
217,248
568,948
Increment
G.O. Library
G.O. Capital
Refunding
Refunding
Improvement
Bonds,
Bonds
Plan Bonds,
Series 2004C
Series 2010A
Series 2008A Total
Bonds payable $775,000
$3,660,000
$7,045,000 $11,480,000
Future interest payable
217,248
568,948
3,141,589
3,927,785
$992,248
$4,228,948
$10,186,589
$15,407,785
Payments to maturity:
2013
$111,345
$381,955
$560,168
$1,053,468
2014
107,775
420,805
559,368
1,087,948
2015
109,005
423,680
558,168
1,090,853
2016
109,895
420,543
556,568
1,087,006
2017
110,440
425,830
559,468
1,095,738
2018
110,580
424,880
561,768
1,097,228
2019
110,308
433,480
558,484
1,102,272
2020
109,600
431,630
564,423
1,105,653
2021
113,300
429,480
564,468
1,107,248
2022
-
436,665
563,705
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
$992,248
$4,228,948
$10,186,589
$15,407,785
156
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION IMPROVEMENT BONDS
December 31, 2012
Bonds payable
Future interest payable
Payments to maturity:
2013
2014
2015
2016
2017
G.O.
G.O. Street Improvement
Reconstruction Bonds,
Series 2010 Series 2009A
$770,000
4,620
$774,620
$774,620
$774,620
157
$5,420,000
341,400
$5,761,400
$359,600
3,618,875
592,900
591,175
598,850
$5,761,400
Exhibit 3
Total
$6,190,000
346,020
$6,536,020
$1,134,220
3,618,875
592,900
591,175
598,850
$6,536,020
CITY OF CHANHASSEN, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
GENERAL OBLIGATION REVENUE BONDS
December 31, 2012
Exhibit 4
G.O. Water
G.O. Water
G.O. Water
G.O. Water
G.O. Water &
$4,741,296
Revenue
Revenue
Revenue
Revenue
Sewer Revenue
5,109,419
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
Bonds, Series
1,388,303
2004B
2005B
2011A
2011B
2012A
Total
Bonds payable $5,845,000
$3,680,000
$5,920,000
$3,720,000
$1,245,000
$20,410,000
Future interest payable 604,848
69,910
462,157
1,027,100
89,605
2,253,620
$6,449,848
$3,749,910
$6,382,157
$4,747,100
$1,334,605
$22,663,620
Payments to maturity:
2013
$582,754 $3,749,910
$292,470
$106,000
$10,162
$4,741,296
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
$6,449,848 $3,749,910
$6,382,157
$4,747,100
$1,334,605
$22,663,620
158
CITY OF CHANHASSEN, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
December 31, 2012
Taxable Capacity Valuations:
Tax Capacity
Values
Property Type 2011/2012
Real estate and personal property:
Hennepin County
$1,398,546
Carver County
35,607,351
Fiscal disparities:
Distribution
1,940,558
Contribution
(3,978,995)
Less: captured tax increment value
(469,759)
Net tax capacity
$34,497,701
Tax Levy and Tax Rates
Exhibit 5
Payable 2012
Tax
Certified Capacity
Levy Rate (1)
Taxes levied:
Revenue $7,434,500 20.891
Debt Service 2,719,190 7.641
Totals $10,153,690 28.532
(1) Urban rate
159
CITY OF CHANHASSEN, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2012
Exhibit 6
160
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
2012/2013
$445,310
$593,200
$1,038,510
$550,000
$130,680
$680,680
$1,719,190
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
$4,088,750
$10,260,700
$14,349,450
$1,256,800
$630,090
$1,886,890
$16,236,340
160